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Committee: TID and Moscone Expansion District met benchmarks but website and posting lapses flagged
Summary
OEWD told the Government Audit and Oversight Committee that the Tourism Improvement District and Moscone Expansion District met required benchmarks for FY 2016–17, but staff flagged out-of-date websites and possible Brown Act posting violations; the committee forwarded the report to the full Board without recommendation pending follow-up on a $1.18 million TID deficit.
The Government Audit and Oversight Committee received the FY 2016–17 annual reports for the Tourism Improvement District (TID) and the Moscone Expansion District (MED) and was told both districts met OEWD’s benchmark reviews but that administrative issues remain.
Chris Korgas, a senior program manager in the Department of Economic and Workforce Development, told the committee that OEWD’s review found the two business-improvement style districts met all three benchmark tests OEWD checks each year. “In our findings and recommendations is the TID and MED were successful in implementing their management plan. They did meet all their benchmark requirements,” Korgas said.
Korgas and OEWD staff reported several compliance and administrative concerns: both districts’ websites have broken links and out-of-date postings, and OEWD found that the last posted meeting agenda on the district site was dated Oct. 30, 2017, which staff said could constitute a Brown Act violation. Korgas said OEWD has alerted the districts and held a Brown Act and public records training for executive directors.
Supervisor Cuskin pressed staff on a reported net position showing an apparent $1,180,000 deficit in the TID for the year ending June 2017. Lynn Farzoli, identified in the record as the TID executive director, responded that the TID and MED operate as separate legal entities and that MED funds cannot legally be used to cover a TID shortfall. “They act separately,” Farzoli said, and she agreed to review the specific financial pages with OEWD and report back.
Committee members asked how Brown Act violations are remedied; Korgas outlined two remedies: a private party may sue to compel compliance and recover attorney fees, or, in serious cases, a district attorney could bring an enforcement action. OEWD staff said they would continue monitoring the districts’ corrective work.
Chair Jane Kim asked members if the committee should forward the item to the full Board. After discussion about receiving the financial follow-up, the committee voted to forward item 1 to the Board of Supervisors without recommendation, pending staff follow-up on the $1.18 million TID deficit.
The committee’s action sends the FY 2016–17 reports to the full Board and requests OEWD and the TID executive to provide follow-up information on the deficit and website corrections.
