Cash-Strapped Agencies Force OAA To Change Renewal Plan

The nonprofit Ocean Avenue Association set its sights lower for its next iteration after pushback on its proposal by government agencies.

The City Hall-authorized community benefit district charges an assessment on property owners in the district to implement cleaning and beautification services along Ingleside’s Ocean Avenue. Its current budget is about $360,000. But since its authorization expires soon, the association, with financial and staff support from the city, is undergoing a renewal process that requires obtaining approval from a majority of property owners — many of which are city and state agencies.

The volunteer board of directors voted for a $700,000 budget in September. But a handful of agencies in the district — all with well-publicized financial challenges — said they couldn’t afford the expense.

“Given these factors, we are recommending the board approve moving forward with renewal at the $515,000 budget level which is something we think we can go out to the district and get support for,” the OAA’s Executive Director Christian Martin said.

The San Francisco Municipal Transportation Agency, which is facing a pandemic-induced fiscal cliff, will pay into the district for the City College Terminal. Officials didn’t find the proposed services and assessment of about $40,000 per year feasible, according to the city’s CBD Program Director Jackie Hazelwood.

“In terms of future conversations with these agencies, particularly BART, fees for service are a thing,” Hazelwood said. “That’s a real thing and real option moving forward in terms of conversations to be had. It’s a year-by-year commitment they can make and a conversation that can be iterative versus this 15-year commitment that they just can't commit to at this time.”

City College of San Francisco, the Recreation and Parks Department and BART also said the proposed assessment costs were too high for the current financial climate.

The decreased budget means the organization will continue relying on grants for marketing and placemaking activities. Martin said the service level will most likely stay the same with the potential addition of one more full-time maintenance worker called an ambassador. For property owners, the new budget means a 7% increase in assessment cost to existing Ocean Avenue ratepayers rather than a 20% increase.

The board approved adjusting the boundary lines of the new district to include part of Frida Kahlo Way near City College and granted its executive director the ability to make minor amendments to the budget in line with any corresponding changes to the district boundaries and associated management plan and engineers report to account for that and financial suggestions from the City Attorney.