Supervisors press Public Works on contracting, staffing and grant practices; department promises reforms

Supervisors used a March 4 Government Audit & Oversight Committee hearing to press the Department of Public Works on organizational stability, procurement practices and the department’s use of grants and exempt hires amid recent corruption revelations.

Supervisor Aaron Peskin said the revelations surrounding recent contracting raised concerns about the department’s "control environment," telling Public Works leaders that review should examine how contracts are procured, where checks failed and which rules should be changed. "This is one of the most sordid chapters of corruption that I've encountered," Peskin said as he introduced the hearing.

Acting Public Works leadership described organizational goals and the department’s large operational role. The acting director (self‑identified in the transcript as Alec Grama) described three department goals—being a better place to work, driving innovation and inspiring stewardship—and said the department employs roughly 1,600 people citywide. Supervisors repeatedly pressed for details after staff displayed a top‑level org chart that showed many positions listed as "acting." Peskin and others argued a large number of acting positions could weaken accountability; the acting director said HR processes and reassignments explain many acting roles and committed to return with a fuller staffing report.

Officials and staff described the city’s procurement framework. Public Works summarized contracting types governed by Administrative Code chapter 21 (professional services, commodities) and chapter 6 (public works construction), described job‑order and term contracts, and noted limited exceptions used for homelessness work that can waive typical competitive requirements. Controller Ben Rosenfield told the committee his office is refreshing a prequalified pool for forensic and investigative work and expected certification within several weeks.

Supervisors pressed Public Works on the department’s use of exempt (at‑will) hires instead of civil‑service positions and asked for data showing how DPW compares to other departments. The acting director and controller explained charter categories for exempt hiring and said seasonal, project‑based and limited‑term needs sometimes justify non‑civil‑service hires; they agreed to provide comparative data to the committee.

Committee members also asked why some services—sidewalk sweeping, landscape maintenance and pit‑stop operations—are delivered via grants to nonprofits rather than being done in house. Staff said some grant relationships support workforce development and limited‑term programs and that grants follow a separate guidance memo; staff agreed to provide that memo to the committee.

In response to concerns about potential vulnerabilities, the acting director announced immediate reforms: department‑wide ethics training, tighter solicitation rules (including requiring at least three quotes for some homelessness‑related procurements) and more rigorous review for certain contracts by the controller and city attorney’s offices.

Supervisor Peskin moved to continue the item to the call of the chair so staff and the controller could produce requested follow‑up materials; the committee accepted the continuation without objection and scheduled further hearings and controller reports.

Next steps: Public Works will provide follow‑up materials (detailed staffing and acting‑position explanations, comparisons on exempt hires, the grants guidance memo and a full breakdown of contracts and funding sources) and the controller expects to release targeted reviews in the coming weeks for committee consideration.