February 2020 Board Minutes
City of San Francisco
JAPAN CENTER GARAGE CORPORATION
Regular Meeting of the Board of Directors February 20, 2020
11:00 a.m.
Union Bank Community Room 22 Peace Plaza, San Francisco
MINUTES
PRESENT: Rodney Chin, Edward Ong, Hagen Choi, Jan Masaoka, Keiko Murase and John Noguchi
ABSENT: Arcadi Kolchak, Vas Kiniris, Green Chang, Kimberly Kolbe, Jerry Ono
ALSO PRESENT: Claudine Cheng, Corporate Counsel; David Dunham, SFMTA; Fred Bekele, Alan Wong, IMCO and Richard Hashimoto, Corporate Manager
GUESTS: Stephen Nakajo, Japantown Task Force
1. Call to Order
The board of directors meeting was called to order at 11:11 a.m.
2. Approval of Minutes of December 19, 2019
Director Noguchi made a motion to approve, seconded by Director Choi and the motion was unanimously approved.
3. Board President’s Report
a. President Chin stated that the Community Participation and Marketing Fund Committee is requesting to move funds from one fund to another.
Committee chair Ong stated that four requests have been received. Three of those requests fall under marketing. As of today, there is $5,400 in Community Participation and $6,273 in Marketing.
Corporate counsel reminded the board a policy was previously approved to move funds when needed and should be heard under committee reports.
4. Corporate Manager’s Report
a. The recent fire sprinkler head replacement program that was previously paid from the operating budget but, is now be reported under the capital account to be depreciated. In December, the corporation transferred $111,225 from the capital account to the revenue account and distributed to MTA.
However, since two phases of the project was already reported in previous year’s audited financial statement, JCGC will only record the last phase in the amount of $36,135 under building improvement. December’s financial statement will reflect this amount.
Director Masaoka asked the purpose for the capitalizing the cost. Mr. Hashimoto stated that the fire sprinkler is a building improvement cost that will be depreciated over time. Initially, the expense was paid from the annual operating budget because MTA wanted to preserve the balance in the capital improvement account for the PARCS (Parking Access and Revenue Control System) expense. Since most of PARCS costs have been paid, the balance in the Capital Account is sufficient to cover the entire fire sprinkler expense but only the $36,135 will be recorded in the financial statement.
Ms. Cheng asked what happens to the difference of $75,090. Mr. Hashimoto stated that this amount was reported in the prior fiscal year audit under the operating budget thus, there is no need to capitalize that amount.
b. There has been a longstanding agreement with Hotel Kabuki to charge the monthly parking rate for stairs leading from main garage into the hotel which encroaches on garage property.
Recently, a hotel employee asked for a monthly access card since they were paying the monthly parking rate. I explained that the charge is an encroachment for the stairs. She asked for a copy of the agreement.
Unfortunately, the agreement goes back to 1968 with the original developer of the hotel and considered lost. Therefore, Mr. Hashimoto asked Corporate Counsel to draft a new agreement since the ownership of the hotel has changed a few times.
Director Choi asked if such agreement will have to be renewed each time a new owner purchases the hotel. Mr. Hashimoto replied that it may be in our best interest to maintain an agreement between two current parties but will consult with corporate counsel.
c. On Feb. 13th, MTA conducted a Japantown Merchants presentation for the forthcoming Geary Rapid Project. The first phase will be to demolish the Steiner Street pedestrian bridge in March. Soon afterwards, Japantown businesses will be impacted by replacement of aging water and sewer mains on the north side of Geary.
Demolition of the Steiner Street bridge will not occur during the Cherry Blossom Festival and will be completed in one weekend.
Japantown community and SFMTA have been working closely to mitigate the impact of the construction on businesses. The Mayor’s Office of Economic and Workforce Development is also assisting with wayfinding signage during the project.
d. On that same day, MTA conducted another presentation in the evening on the reconfiguration of Sutter Street from the current three lane configuration to two lanes (one lane in each direction). This change will be from Gough to Fillmore Streets.
The reconfiguration may pose problems for the community center and the preschool on Sutter Street when parents often double park to drop off or pick up their children and the shuttle service that drop off and pick up seniors during their lunch program. They will have to work out an amicable solution with MTA.
In response to a question by Mr. Dunham, the lane reconfiguration will commence immediately following the Steiner Street bridge removal in May 2020.
5. Corporate Counsel’s Report
Ms. Cheng postpones her report and will report to items on the agenda.
6. Treasurer’s Report
In the interest of time, President Chin asked to move this item later in the agenda to allow guests to provide their reports under community updates.
7. Community Updates
Mr. Nakajo reported on the following items:
a) Peace Plaza Renovation – The 2020 Park Bond for $255M may be moved to 2023 due to the Mayor’s focus on the Mental Health Bond. With the fire department bond on November’s ballot, bond capacity is limited so the Park Bond may be postponed.
Although the decision has not yet been made, it is crucial for the community to continue advocating for the park bond and to keep the momentum they have maintained going for the past three years.
A survey was conducted by SF Recreation and Park to the general public asking them to help prioritize the Peace Plaza Project. All are encouraged to take the survey at bit.ly@sfparksurvey.
Director Noguchi asked if the entire park bond will be deferred. Mr. Nakajo replied that is unknown but if the park bond is reduced, the Peace Plaza may not be included since there are other more prominent projects in the queue. Mr. Nakajo has also arranged meetings with state officials to determine if the Peace Plaza is eligible for state funding.
b) Under the Board of Supervisors legislation to promote and preserve San Francisco’s unique cultural districts, the Japantown Task Force is required to submit a CHHESS (Cultural History, Housing and Economic Sustainable Strategy) Report in September 2020.
The CHHESS Report consists of six focus groups which are Arts & Culture; Economic & Workforce Development; Land Use & Resilience; Cultural Heritage Sustainability; Cultural Competency and Young Adults. Focus group meetings have been taking place to obtain input from the community that will help guide the future of Japantown. A preliminary plan will be presented at a Grand Launch during the Cherry Blossom Festival in April.
8. Treasurer’s Report
Since December’s financial statement was not available in time for today’s meeting, Director Ong summarized November 2019 financial statement.
In the Profit and Loss statement, for the 7 months ending November, the percent of income to budget should be at 58.33%. Transient Revenue is at 54.31% (-4.02%), Monthly Parking is at 64.45% (+6.12%), Non-taxable Monthlies is at 94.75% (+36.42%) and Taxable Misc. Parking Revenue is at 38.88% (-16.97%) to the approved budget.
Total revenue income for the month is $382,562 vs. $362,228 in prior year/month which is a $20,334 increase over same period last year. For the seven months ending November, Year to Date reports income at $2,648,382 for 2019 vs. $2,534,993 in 2018, resulting in an increase of $113,389.
Expenses should be at 58.33% to budget however, overall expenses reports 68.20% which is attributed to added expenses associated with the new PARCS (Parking Access and Revenue Controls System) equipment.
Transient Vehicles has increased 4,022 for same period over last year and Monthly Parking decreased by 7 accounts.
Director Noguchi made motion to accept November 2019 financial statements with Director Choi seconding. The motion was unanimously accepted.
9. Committee Reports
A. Community and Marketing Funds Committee
1) Committee Chair Ong reported that the committee has received 4 funding requests. Three requests are under marketing and one under community participation.
Under the Community Participation Fund, there is $9,400 available and the Marketing Fund has a balance of $6,267 for the two months remaining in the fiscal year.
The Cherry Blossom Festival has requested $5,000. Based on the remaining funds available, the committee is recommending $4,000 from the Community Fund.
The other requests are under Marketing with Jumpstart requesting $5,000 for their 25th anniversary children’s literacy gala. The committee is recommending $4,000.
APA Heritage Foundation is requesting $5,000 and the committee is recommending $4,000.
Community Youth Center (CYC) is requesting $2,500 for their 50th anniversary gala. The committee is recommending $2,500.
In total, the committee is recommending $4,000 from the Community Participation Fund and $10,500 from the Marketing Fund.
Since there is a balance of $6,273 only in the Marketing Fund, the committee recommends transferring $4,500 from the Community Fund to meet the $10,500 marketing requests.
President Chin made motion to approve transfer of $4,500 from Community Participation Fund to Marketing. Seconded by Director Masaoka, the motion was unanimously approved.
Board action was conducted for the following requests:
a) Sakura Matsuri (Cherry Blossom Festival) in the amount of $4,000 from Community Participation. Director Masaoka made motion to approve with Director Ong seconding. The motion was unanimously approved.
b) Jumpstart in the amount of $4,000 from the Marketing Fund.
Director Masaoka asked for further description on the organization. Chair Ong stated that Jumpstart has had affiliations with community organizations in Western Addition in the past. That said, Director Masaoka made motion with Director Choi seconding and the motion was approved. Director Ong abstained.
c) APA Heritage Foundation in the amount of $4,000 from the Marketing Fund. Director Noguchi made motion to approve with Director Ong seconding. The motion was unanimously approved.
d) CYC’s request in the amount of $2,500 from the Marketing Fund.
Director Choi made motion with Director Ong seconding. The motion was unanimously approved.
With these distributions, that would leave a balance of $900 in Community Participation Fund and $273 in Marketing for the two months remaining in the fiscal year.
2) New Website Development
Chair Ong introduced Greg Viloria who has been designing the new website. The template was approved by the committee which is being recommended to the board for approval.
Mr. Viloria presented the preliminary design with some garage information content that is still under development.
A question was raised on the “Learn More” button on the home page. Ms. Cheng suggested that the information could be used to help promote and market the Japantown with the objective to encourage visitors to drive and park in the garage.
Mr. Viloria mentioned that the Japan Center malls’ website will be terminated soon and the garage’s website can be used to help promote the malls and events.
Following thorough discussion of the web pages, directors gave input and suggestions including the transition from computer to mobile displays.
Chair Ong stated that the committee is recommending approval of the template and the content will be a work in progress with corporate staff and corporate counsel.
Director Noguchi made motion to approve the template. Director Murase seconded and the motion was unanimously approved.
B. Contract Review Committee CPMC Parking Agreement
The number of spaces will be adjusted which is currently being assessed with consideration of their other campuses. Mr. Hashimoto stated that there are 50 spaces allocated to an adjoining medical office on Van Ness Avenue that are not CPMC hospital employees but have enjoyed the restricted use rate.
Director Masaoka made inquiry as to who the 50 spaces are assigned to. Mr. Hashimoto replied that the 50 spaces are assigned to medical office staff not under CPMC’s authority. Those 50 spaces may require a separate agreement or the individual can enroll into the operator’s Restricted Rate monthly parking contract.
Director Noguchi reported that the committee had met regarding the CPMC Agreement. Mr. Hashimoto mentioned that he is now communicating with Alan Forrester, Contract Manager for CPMC and still on target for March signing.
9. Corporate Counsel’s Report
(a) Ms. Cheng distributed a handout, Corporate Governance and Sunshine Ordinance, Part I (attached to these Minutes).
The last training was conducted three years ago and would be beneficial to update directors and for new directors to become familiar with the ordinance. As prescribed by the City and County of San Francisco, the parking corporation shall comply with Chapter 67 of the City’s Administrative Code, i.e. the Sunshine Ordinance and Brown Act.
During Ms. Cheng’s summary, Director Masaoka asked to what extent the parking corporation needs to comply with the ordinance since the parking corporation is a quasi-entity. Ms. Cheng replied she will confer with the City attorney’s office.
While on the discussion of Conduct of Meetings, Director Noguchi made inquiry regarding the number of directors needed to establish quorum. According to the handout, a quorum is achieved by the number of seats including vacancies.
Per the Bylaws, the corporation has 15 seats available of which 11 are currently occupied. A majority would be 8 directors required to establish quorum for meetings. This would be a challenge to acquire since there are currently 11 directors.
Ms. Cheng will consult with the city attorney’s office to clarify this requirement and will report back at next meeting. In the meantime, directors should consider recruiting additional directors or reducing the number of seats.
Director Noguchi also asked for clarification on the “transaction of business” segment. If a director leaves before the meeting ends breaking quorum, does the meeting then stop? Ms. Cheng will again consult with the city attorney’s office on this requirement and will report back to the board.
At the last meeting, Ms. Cheng announced that would be two parts of the training covering the Sunshine Ordinance and Brown Act. Director Murase asked if there will be another session. Ms. Cheng replied that some directors that have not gone through the training will be updated and set some time aside for questions and answers for those directors that are new and/or unfamiliar with the exercise.
Ms. Cheng will update the handout after conferring with the city attorney’s office and will send the updated version to the corporate manager to be disseminated to the board.
(b) Ms. Cheng suggested placing a time restrictions for guest presentations to ensure adequate time for the board to conduct discussions of items in the meeting agenda.
10. Garage Operations and Security Report
a) Mr. Wong reported that there were 5 reported car break ins since last meeting and 62 cases of homeless escort removals from the garages. The increase is attributed to the cold winter season.
b) PARCS upgrade has been installed but still lack the multi-language displays.
c) In addition to other facility repairs, monthly parking enrollment will be transitioned to the cashier’s office instead of the administrative office.
Mr. Hashimoto mentioned that each supervisorial district will be considering a navigation center. No specific site has been identified for District 5 at this time.
11. Recess to Closed Session
There was no Closed Session for this meeting.
12. General Public Comment on Items not on the Agenda There was no general public comment.
13. Old / New Business / Future Board Agenda Items / Announcements, etc. Other Announcements
CYC 50th Anniversary Gala – March 20
Jumpstart Event – March 26
Cherry Blossom Festival – April 11, 12, 18 &19
APA Heritage Month Celebration – May 1
14. Regular Meeting Adjournment
Upon motion, the meeting adjourn at 12:40 p.m.
Respectfully submitted,
Claudine Cheng and Richard Hashimoto
Attachments: San Francisco Sunshine Ordinance Provisions