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GAO reviews annual reports for East Cut, North of Market/Tenderloin and Lower Polk CBDs; Tenderloin integrates Safe Passage

Government Audit and Oversight Committee · November 13, 2019
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Summary

The committee received FY2017–18 annual reports for three Community Benefit Districts. OEWD found East Cut met 3 of 4 benchmarks (shortfall due to Salesforce Park delay), North of Market/Tenderloin met all benchmarks and integrated Safe Passage, and Lower Polk met benchmarks and reported a 23% share of non-assessment revenue; the committee recommended all three reports to the full Board.

The Government Audit & Oversight Committee on Nov. 13 reviewed FY2017–18 annual reports and OEWD findings for three Community Benefit Districts (CBDs): East Cut (formerly Greater Rincon Hill), North of Market/Tenderloin (TLCBD), and Lower Polk.

East Cut: Chris Korgus of the Office of Economic and Workforce Development presented East Cut's annual report. The district (formed in 2015 and set to expire on Dec. 31, 2030) met three of four OEWD benchmarks. The CBD did not meet benchmark 1 for parks and green space because the delayed opening of Salesforce Park reduced assessed spending for that category; OEWD noted this reduced the district's park spending relative to its management plan. Mike Reager, deputy director for the East Cut CBD, provided operational metrics: more than 4,200 properties in the district, roughly 700 residential units under construction, 1,700+ calls for service in FY17'18, nearly 2,000 graffiti removals, nearly 2,000 needles collected, 130,000 pounds of garbage removed and more than 3,000 trash cans 'topped.'

North of Market/Tenderloin: OEWD reported the TLCBD met all four benchmarks for FY17'18 and increased organizational capacity, securing non-assessment dollars equal to about 19% of its total budget. Simon Bertrand, the TLCBD executive director, described programmatic work that year including expanded cleaning services (7 days per week), Safe Passage integration (increasing corner captains from 15 to 25 and promoting five to part-time paid positions), community engagement events and partnerships, and a fundraising total of $268,000 in non-assessment sources that helped integrate Safe Passage.

Lower Polk: OEWD found the Lower Polk CBD met benchmarks for FY17'18. Staff noted the CBD temporarily lost its 501(c)(3) designation in winter 2017 due to an accounting error but received reinstatement in spring 2018 after replacing its accountant. Christian Martin, outgoing executive director, summarized metrics including 2,828 graffiti removals, over 106,000 pounds of trash removed, steam cleaning, pilot alley improvements and a 311 tracking app used to coordinate with DPW. Committee members thanked Martin for his service; a motion was made and the item was recommended to the full Board without objection.

All three items were recommended to the Board of Supervisors by the committee without recorded objection.