public bathroom access with some of our partners in the community who we subsidize to keep their bathrooms monitored and open to the community. that is, in a nutshell, what the tenderloin cbd is all about. i am happy to take any questions. chairperson campos: thank you. i do not want to lose the quorum of the committee. i wonder how long this is going to be. >> this is going to be brief. i will go over what the office

of economic and workforce development is required to review on an annual basis. briefly, business improvement district, also known as community benefit districts, are governed by state law, local law, and a contract with the city administered by our office and the board of supervisors. our office is charged with ensuring that they are meeting their requirements, both on their city contract in complying with local and state laws. we are also required to conduct an annual review and provide you with a performance review and financial analysis. the resolution in front of you covers four fiscal years. we look at the annual reports and financial reviews. i am going to go over just a few more local and state laws so you have more information. the business improvement law does come from the streets and

highways code, which requires that each business improvement district provide you with an annual report and budget. they are also subject to the ralph brown act to ensure open meetings, and the california open records act. the are also required to host an annual meeting of the property owners within the district. through their city contract, they are required to provide us a mid-your report, annual report, and financial review or audit. lastly, the board of supervisors or the cbd's are required to have a hearing so the public and provide testimony about the work of the administration and how they have administered the district. i am one to skip all this information, since you just heard the presentation. i will just say it is a 15 year

community benefit district. i am also going to skip over their program area, since she just talked about that. to analyze their financials, we received help from the controller's office, the city service auditor. we focused on annual budget, sources of income, variance between budget amount and expenses, and how they plan to spend carryover funds from year to year. the annual budget -- you will see from this graph that they have stayed close to their management plan. so they have complied with that rule. again, there areas are cycle of operations and beautification. that takes the majority of their budget. district identity and landscape improvements. and funds for administration and contingency expenses.

the other sources of funding -- they are required to have at least 5% of their budget come from other sources. during their first two fiscal years, they did not meet the requirement, which was 5%. they raised 1% to 3%. however, the last two fiscal years, they raised 7% of their budget from other sources. in terms of budget vs actual expenses, 2007-20000 -- 2007- 2008, projects like the merrill were not finished. in the last fiscal years, they were very close to what the budgeted. lastly, each year the receive two big transfers from the city comptroller's office.

that is when people pay their taxes. the money they receive in may is referred to as deferred revenue. really, that money takes them through the first six months of the next fiscal year. at the end of fiscal year 2009- 2010, they deferred 430,000 from their budget to get them through the first six yet -- first six months of the next fiscal year. they also had net assets of $283,000 which the allocated to specific projects in fiscal year 2010-2011. i know. it is almost over. they had a budget of $1.20 million. you will see here an amount of $433 thousand, which is income over expenses. that amount is going to get them to the first six months of the next fiscal year. lastly, recommendations from our office. our office, along with the

controller, strongly recommend an annual audit, starting with this fiscal year. i am happy to hear the have already begun that process. we also recommended that they update their website so it was easier for the public to navigate and find information. they have also started on that process. we recommend they do more marketing and promotions of the district and improve overall communications to the public not only about the actual district but the work of the organization. lastly, our office provided a grant to compass point to provide north of market with a needs assessment. they're going through an executive director serge process right now. we provided $25,000 to help them with that process. that is the end of my presentation. chairperson campos: thank you very much.

colleagues, any questions for the thorough and quick presentation? we appreciate that. why don't we open it up to public comment? i have speaker cards from lisa, james tracey, steve woo, and lorenzo listano. if you can come forward, you each have two minutes. >> i am lisa. i have lived in the tenderloin for 36 years. i appreciate local programs like the north of market community benefits center, safe havens, clean city, and the good neighbor coalition project they work on. chairperson campos: great. thank you very much. >> my name is steve wu. my group wants to express our of our support for the strong leadership provided by their director. we have worked closely with the cbd for many years and have good

things to say about them and their great work. thank you. chairperson campos: thank you. >> good afternoon. my name is james tracy. the first thing -- full disclosure. our organization receives a small grant from the community benefit district. but our praise would be the same even if we did not receive a penny. the community benefits district -- north of market/tenderloin really distinguishes itself by trying to improve the community for the poorest person in the neighborhood, whether they are living in a cardboard box or a condo. programs have to benefit each and every person in that neighborhood. that distinguishes them from some of the other groups that do not have such an inclusive, wonderful scope. we are looking forward to continuing to work with them on the safe haven program. it is really a one-of-a-kind

program that we are developing with them. i really urge you to support them. thank you. chairperson campos: thank you. next speaker. >> good afternoon, supervisors. my name is lorenzo. i am a member of the tenderloin filipino community organization. i am here with our organization because we support cbd and the leadership of deena and continuing the work. we work with them with regards to the safety and the good neighborhood coalition. we feel it is worth it to support them for their work. thanks a lot. chairperson campos: thank you. next speaker. >> i am a former board member of

the cbd. this is a rogue organization. they are controlled by social service providers. people in the neighborhood do not have recourse for the initiatives they decide to implement. the attempted to eliminate the resident board seat after i had to bring to the city's attention that they were not following the brown act and the california public records act, and they were not following the sunshine ordinance. there is a precedent for all of them to have to adhere to that. they have a problem with underrepresentation of various groups. obviously black people. but that is with san francisco as a whole. i wish supervisor kim was here to hear this, because it is her district. they had no system for administration of grants. they give grants to who they want to. it is evident because i submitted a grant as a board member, and shortly after i

tried to be cordial with them and submit a grant according to the most thorough grant ever received. i was on the board and i know the process that they did not have in place. that is what i was voted off the board illegally in a closed session, because i was wondering what systems were in place to deal with any of these things. they eliminated the organizational committee, which gay community members input for grant administration. -- gay community members input for grant administration. they gave that service to the community. as a board member, i was not allowed to go through the auditor.

as you know, the board controls staff, not the other way around. there are e-mails showing their illegal activities and things like that. you need to take over set of this organization. chairperson campos: thank you. next speaker. just for the record, supervisor kim is not able to be here because she needs to be in the budget committee. i think she is probably needed for a quorum. next speaker. >> good afternoon, members of the board of supervisors. i am not related to lane, but we have the same last name. i am the clubhouse director of the board -- of the boys and girls club. i have been there for five years and have gotten an opportunity to work with the safe passage program. it is a community-based safety

project to get children safely through the neighborhood. the tenderloin has the highest concentration of children on the city. having a safe street is really critical at times. there is a block between high, taylor, ellis, and golden gate. it is the highest concentration of service agencies. that is where we are increasing an upper -- an effort for service. there are families in the tenderloin. we have been involved with beautification and the linking of young people in the community to the artist movement in the tenderloin. we are involved with the mineral across from our club. we have appreciated their

leadership, and especially the youth, and involving them with beautification and the local arts district beautification. chairperson campos: thank you. next speaker. >> good afternoon. my name is douglas young. i would like to think this -- take this opportunity to thank the lane for her years of service, especially for this community. elaine and i have worked on one project. from my experience, she seems to be a nice person. with regards to the comments of the previous speaker, those allegations should be checked out. if they are true, they are true. if they are false, they are false. they should be checked out as a matter of principle. i think supervisor kim would be the proper person to discuss them with the other parties involved. with regards to the recommendations for this district, i would like to put in

a suggestion that maybe the district should consider hiring andrew cohen, also known as the big deal gate cup. i think this would be an excellent opportunity to show that andrew cohen has been unfairly, in my opinion, state voted for what happened in video date. when the truth comes out, andrew cohen is not the main person who is to be blamed. why don't we give him a chance to show what a nice guy he really is? hire him and get him to improve the tenderloin. he used to be a street cop there. thank you. chairperson campos: next speaker. if there is any member of the public who has not spoken but would like to speak, please come forward. >> supervisors, president, mi a.

my neighborhood seems to have an inordinate amount of business at city hall. i am beginning to recognize some of you. i was at the hearing earlier on redistricting appointments. there are some parallels in the hearings. for example, on the business district board, among other things. i cannot believe, given the amount of surgery that has to be done in district 6, that you are not going to put somebody from that district on the commission. how about james tracy? how about juanita? somebody? if you sell this neighborhood down the river, what do you think you are going to get? chairperson campos: if there is another member of the public who would like to speak, please come forward. >> last monday, i was elected to the board of directors. i am coming to speak as a resident, and not a reflection of the views of the cbd.

first, let me say i appreciate the oversight. i think the cbd does a lot of good things for the tenderloin. no question about it. but there needs to be greater transparency and there needs to be greater accountability. at the present time, the cbd spends approximately 80% of their budget through one vendor, which cleans the streets. this is on a non-competitive basis. i was given a packet of documents after my election. although i ran unopposed, i never saw the numbers for anybody else. i was speaking about competitive

bids, that has not been complied with. city ordinances include the sunshine ordinance. at present, they take the position that the brown act applies. it is cumbersome and difficult to enforce on getting open government, sunshine. my suggestion to you is that you pass this enabling legislation. you mandate that they comply with the sunshine ordinance as well as the brown act. thank you. chairperson campos: next speaker.

>> there are two things been passed out. when is my statement. the other is a report done by compass point on the organization. i am here to express my disappointment with the north of market community but the district. it started with overwhelming support from all parts of the neighborhood, including residents with an interim board. it slowly became dominated by special interests, identity- seeking funding, and their agencies. i should point out that speakers today our funding agencies.

the work community no longer is appropriate. time and time again, resident leaders were being left out of the decision making process. there was no accountability. there need to be changes including more residents on the board of directors, training not only four board members of future board members, and contributions of residents on their website. all their correspondence indicates a statement that the entity represents the property owners and in no voice speaks for the tenderloin. the new executive director needs to do out reach to the entire residents of the neighborhood we need to stop addressing land use

issues, and doing what other community groups have been doing without any collaborative efforts. thank you. chairperson campos: thank you. that speaker. -- next speaker. >> another founding member of the cbd -- i got off the board immediately after one year because of the infighting, the out of control -- because they got out of control. we are getting them trained. i asked it back then. the office of workforce development is out of sync. state law, for every year, they are supposed to come in front of you annually to give their annual reports. that is for each cbd.

fisherman's wharf, annual report, 2010. castro street and upper market, december 2010. noe valley, december 2010. tenderloin cbd, 2010. these were all formed in 2005 and 2006 s and their annual reports were supposed to be done every year. therefore, the mayor's office has dropped the ball. the board of supervisors has not done its job of having these meetings every year. this is the first time in four years that we have come here. by june 1, 2011, they will have

6640 properties. -- there will have 6640 properties citywide, and growing. you have more in the pipeline. if you do not get control, you will have these problems. chairperson campos: the reference on the sunshine ordinance -- does the sunshine ordinance applied? -- apply? >> it does not. cbd bids are under state law. they have to comply with the brown act or the california records act. if they follow those rules, they

should be able to follow the sunshine ordinance rules as well. chairperson campos: they have the ability to go beyond what the brown act and public records act requires. they simply adopt the sunshine ordinance. there is something that confuses them from doing that. that would be one suggestion, whoever is listening from the cbd. that is a good idea. we could have that requirement instituted by the board of supervisors. the more uniformity there is, the better. >> what we try to do in our office is to train their staff and board members on the rules and regulations on brown act and the california public records act. i also try to attend all the

different cbd's to make sure they are conducting them in the way that is compliant to those state laws. i think that maybe we could have another conversation about the implications of adding the sunshine ordinance, because there is a difference of opinion in the city attorney's office. chairperson campos: again, i do not think we are saying the city attorney's office is wrong to say that the sunshine ordinance does not apply. they are right about that. what i am saying is the fact that are not obligated to follow it is the fact that they do not have the ability voluntarily to follow it. last question -- on the annual reports, are you legally required to come to the board every year? are you guys doing that? >> this is our attempt to get in front of you to be in

compliance. we are definitely behind. i joined the staff about a year ago. i need to do the analysis of all the cd's and their work. almost all of them have been compliant on their end. chairperson campos: i will put this on the agenda to see where they are in terms of meeting obligations. >> we are almost done. i have been trying to do this since last year. we have maybe a couple more. after that, we are on track. chairperson campos: you can tell us more about it. we have a report. do we received and approved it report? -- do we received and approved

the report? we have a motion from president chiu. some of the concerns that have been raised, i think it is important that they be referred to the district supervisor so she can follow up. without objection. is there any other business before the committee? >> just the point of clarification on item 2 below, whether you wanted the files. chairperson campos: yes. we want to file that. thank you, everyone.