San Francisco environment department severs ties with Friends group after Comptroller review; commission adopts teleconference findings and seeks stronger rules

Acting Director Tyrone Zhu told the San Francisco Commission on the Environment on May 10 that the Department of the Environment is moving quickly to implement nine recommendations from a Comptroller's public-integrity review and has "severed our relationship" with the Friends of SF Environment nonprofit.

The presentation summarized areas the controller identified for improvement, including clearer roles in refuse rate-setting, formal agreements for "Friends of" organizations, stronger ethics advice and training, tighter controls for contracting and hiring, and improved disclosures. Zhu said the department has requested additional City Attorney resources and plans annual staff briefings and updated written policies to reduce future compliance risk.

Why it matters: Commissioners and members of the public framed the report as central to restoring trust and preserving the Department's ability to implement the Climate Action Plan. Without reliable funding and stricter conflict controls, several speakers said, the department risks reputational harm and reduced capacity to carry out climate programs.

Key items and department responses

- Friends of SF Environment: Zhu said staff sent a letter on April 29 formally ending the department's relationship with the Friends organization and that Friends "has been dissolved," per guidance the department received. Zhu added that the Friends board, not the department, will handle any remaining funds and that the department will document the closure for the record. Staff estimated the Friends account balance at about $25,000 and said no department staff currently directs how those funds are spent.

- Ethics, contracts and training: The department will review internal ethics protocols, require biannual ethics training for designated contracting employees, and propose a senior compliance position to oversee grants, contracts and related disclosures. Zhu said the role would provide first-level guidance and escalate complex matters to the City Attorney or Ethics Commission as needed.

- Refuse rate-setting: The Comptroller recommended clarifying SF Environment's role in refuse rate-setting. Zhu noted a June ballot measure that would change the composition of the refuse rate board and add two public hearings, including one before this commission; the Controller's Office will define the new process if the measure passes.

Public concerns and budget ask

Members of the public urged the commission to press the Mayor and Board of Supervisors for more general-fund support to implement climate priorities. Elena Engel of the San Francisco Climate Emergency Coalition said the department's $3,200,000 general-fund request (the commission supported that ask) may not be included in the Mayor's proposed budget and asked the commission to back the item in the add-back process if necessary. Sarah Greenwald of 350 San Francisco urged higher, itemized funding for electrification, building decarbonization, outreach and tree planting, citing specific proposals for pilot programs and outreach.

Votes at a glance

- Teleconference resolution (Resolution file 2022-03-COE; findings under Cal. Gov. Code §54953(e), AB361): Adopted by roll call; yes votes recorded from President Ahn, Vice President Stevenson, Commissioners Hunter, Sullivan and Juan; Commissioners Bermejo and Wald excused.

- Approval of minutes (03/22/2022 draft): Adopted by roll call with the same commissioners recorded as present/aye.

What the commission will do next

Zhu and staff committed to returning with more detailed proposals on commission oversight options (possible contracting/grant thresholds and reporting formats), the proposed senior compliance position's duties, and a breakdown of current grant and contract volumes and revenue sources. Staff proposed a follow-up meeting in late May to review budget outcomes and next procedural steps.

Direct quotations from the record

"We have received clarification from SFGovTV that we are web only until the Board of Education meeting has concluded," said Kyle Wehner, the commission affairs officer, in response to a public question about streaming.

"The Friends of SF Environment has been dissolved," Acting Director Tyrone Zhu said when describing the department's action to sever its formal relationship with the nonprofit.

"I am asking that the commission continue to express support to the mayor for this item," Elena Engel of the San Francisco Climate Emergency Coalition said about the department's $3,200,000 general-fund request.

Ending: The commission closed the meeting after hearing additional public comment and scheduled follow-up work; staff said they will report back on contract/grant volumes, proposed oversight thresholds, and the department's staffing request in the coming weeks.