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Committee advances management agreements for SoMa West, North of Market/Tenderloin and Union Square districts
Summary
The committee recommended approval of management agreements that allow the city to transfer collected assessments to three community benefit districts and added contract language on campaign restrictions and public access to records. Projected transfers total several million dollars in FY2019–20.
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The Audit & Oversight Committee forwarded three related resolutions to the full Board approving management agreements between the city and nonprofit owners’ associations that will allow the controller to transfer assessment funds to the SoMa West Community Benefit District, the North of Market/Tenderloin CBD and the Union Square Business Improvement District.
Chris Korgas of the Office of Economic and Workforce Development described a standard contract template modified for these agreements. Key additions flagged for inclusion across future CBD management agreements included language implementing Administrative Code section 12.G (prohibiting use of assessment funds to support or influence political campaigns), Government Conduct Code section 1.126 (a 12-month contribution restriction for city contractors once a contract is approved), and Administrative Code section 12.L (public access to records and meetings for nonprofit organizations). Korgas said CBDs already generally complied but the city attorney requested the language be added to the contracts.
Korgas provided projected assessment transfers for FY2019–20 if the agreements move forward: approximately $3.7 million to SoMa West, about $1.9 million to the North of Market/Tenderloin CBD, and roughly $6.0 million to Union Square. Representatives from Union Square and North of Market/Tenderloin spoke in support: Karen Flood, executive director of the Union Square BID, thanked the supervisors, said the BID secured a 60% budget increase and started expanded cleaning and safety services Nov. 1, but warned that new administrative requirements create burdens for small nonprofit managers; Simon Bertrand of the North of Market/Tenderloin CBD thanked OEWD for assistance and said expanded services will begin Jan. 1.
The committee sent items 2, 3 and 4 to the full Board with a positive recommendation without objection.
