Ocean Avenue Association Faces Board Intrigue And Cash-Squeeze Caused Service Reductions

The Ocean Avenue Association is having growing pains.

The nonprofit organization, which stewards the Ocean Avenue Community Benefit District, ushered the district into another 15-year term in July, securing more funding and responsibilities.

Monday night’s board of directors meeting, however, presented the association’s struggles as it prepares for the start of its next era in January. There was a testy exchange over board member terms, the revelation of termed-out board members participating in votes for years and low cash reserves forcing staff to work reduced hours or even go unpaid.

The meeting, held in the association’s storefront and via Zoom, was crowded with new faces and representatives from the offices of the District 7 and 11 supervisors. After a quick finance review, the directors reviewed a mandatory financial audit report conducted as a consequence of the Controller’s Office audit. No negative findings were reported. Later, the directors moved on to the major item: board member terms.

A governance committee established to work on the organization’s bylaws, led by Friends of Lakeside Village founder Kath Tsakalakis, presented a slate of six new board member candidates, including herself, term renewals for three board members and board officer nominations.

The changes caused concern and confusion for some. Fourteen-year member Henry Kevane objected to the process.

“I gave a lot to this organization … a lot of my time,” said Kevane, an attorney who lives in Westwood Park. “I gave a lot and I’m happy to give more. I have a lot to give.”

Meeting documents stated that Kevane had termed out in June 2023, and three others had termed out in June 2024. The term-out members participated in voting, including during Monday’s meeting.

The slate was designed to keep board members whose terms still had time left and add new members, termed out, board chair Shirley Lima said.

The Controller’s Office audit recommended that the organization implement term limits.

Tsakalakis asked that the conversation about terms be taken offline and brought to the governance committee. Kevane said he was happy to continue the discussion publicly and that he had not been personally consulted about it. Lima said she had briefly spoken to him about it.

Jackie Hazelwood, the Office of Economic and Workforce Development’s community benefit district program director, took the microphone during the public comment period to state City Hall’s position.

“As a part of this item, I just want to acknowledge that there is a governance committee that is active and has been engaged is something I think at OEWD we’re very pleased with in terms of this organization moving forward with that compliance piece and with that organizational capacity piece,” Hazelwood said. “That’s something that has not been in place in a number of years, if at all.”

The status of the termed-out board members was unclear. While their names have been removed from the website as of Wednesday, Executive Director Christian Martin told The Light that they are conducting research and will have a path forward for them.

Eventually, Korean Martial Arts Center instructor Larry Dorsey, director of Lick-Wilmerding High School’s Public Purpose Programs Ravi Lau and City College Associate Vice Chancellor of Construction and Planning Alberto Vasquez were unanimously approved to continue serving their second term.

Taishan Cuisine co-owner Gavin Chak, Ocean Hair Design co-owner Cindy Huynh, Chase Luck Bakery owner Wei Sen Lei, Charm Coffee owner Kim Ramos, Tsakalakis and City College of San Francisco Board of Trustees member Alan Wong were voted in.

First-term members Little Panda Preschool owner Tiffany Zhang and North East Medical Services representative Dee Wu will continue serving.

Tsakalakis announced a board training along with a number of new committees that will also meet publicly, something that hadn’t happened in years, meeting records show. Hazlewood suggested the members go through open meeting law training.

“It’s exciting,” Martin told The Light of the board changes. “A lot of new energy on the board, small business owners who are interested in improving the community. Looking forward to working with them.”

Decreased Services, Future Projects

While board member terms took up most of the meeting, there was some talk of the organization’s main function: cleaning, maintenance and corridor marketing.

The association reduced the required street cleaning and administrative service levels because of a budget squeeze.

“We have done some spot cleaning per the request of the merchants on both sides of the corridor, so hopefully we’re keeping things together while we wait for our [financial] reinforcements to come,” said Martin, who did not share the usual monthly report with data on powerwashing and waste and graffiti removal.

Martin told The Light he is working unpaid, and all of the other staff are working reduced hours. The organization has five staff: Martin, Associate Executive Director Gabe Cory, Small Business Manager Rosendo Betancourt, Community Liaison Sabine Taliaferro and Ambassador Roland Lee.

Board member Howard Chung, the association’s landlord, has reduced rent payments this year until the association can pay him back next year, essentially a loan. The organization is banking on the income they will get in late December or early January from property owner assessments, which will be higher than previous years by about $100,000 annually, Martin said.

It’s unclear why the association did not have cash reserves or seek a loan to keep service levels in compliance with the Board of Supervisors-approved district management plan.

When asked why the property owners and the public haven’t been alerted to the reduced service, Martin didn’t answer directly but said it’s been discussed at the last two or three board meetings.

OEWD did not give full answers to questions by press time about requirements for meeting service levels outlined in the management plan or the termed-out members participating in votes.

Despite their reduced hours, the association's staff are advancing projects.

Cory reported that the association applied for a $150,000 community challenge grant to host night markets in Unity Plaza and improve the plaza.

Betancourt said city officials had appropriated the $50,000 in District 7 Participatory Budgeting grant funds the association won to host art pop-ups.

“OEWD is currently working on setting up with their next [Request For Proposals] cycle, if I understand correctly,” Betancourt said. “Christopher Corgas, who we have worked with before, will be the point of contact for the RFP. It’s going to be exciting times next year.”

The city is required to put contracts out in a manner so that any company can bid.

The association is also preparing to install new banners from 19th Avenue to Interstate 280, funded by Avenue Greenlight. An Ocean Avenue block party will be held on Nov. 21 that will feature live music, food vendors and local makers.