Minutes - April 2022 Regular Meeting of the Japan Center Garage Corporation Regular Meeting
Regular Meeting of the Board of Directors
City of San Francisco Japan Center Garage Corporation
(A California Non-profit Public Benefit Corporation)
Thursday, April 21, 2022 – 11:00 a.m.
Zoom Meeting
MINUTES
Present: Edward Ong, Vas Kiniris, Robert W. Hsu, John Noguchi, Kemberly Kolbe, Rodney Chin
Also Present: Claudine Cheng, Corporate Legal Counsel; Rob Malone, SFMTA; Richard Hashimoto, Garage Manager; Greg Viloria, Website Developer; Grace Horikiri, Japantown Community Benefit District; Solomon Abayneh and Fred Bekele, IMCO
1. Call to Order – Board Chair Ong called the meeting to order at 11:05 a.m.
2. Approval of Minutes of February 17, 2022
A motion to approve the minutes was made by Director Noguchi and seconded by Director Ono. The motion was unanimously adopted.
3. Board President’s Report
Due to their demanding work schedules, President Ong announced that Green Chang and Keiko Murase have resigned from the board. President Ong acknowledged the two for their service.
President Ong named Jan Masaoka as chair of the Bylaws Committee and Edward Ong as the chair of the Nominations Committee. There are vacancies in the Audit and Finance, Bylaws and Nominations Committee which President Masaoka will appoint.
4. Corporate Manager’s Report
Mr. Hashimoto reported that Revenue for March has increased $141,125 over last year but cumulatively is still down by $606,293 since the SIP had been issued. Transient Parking has also increased by 16,678. Cumulatively, we are still down by 21,092 vehicles. Compared to the other 21 city garages, Japan Center Garage ranks 3rd in transient parking and 5th in revenue.
A claim will be filed with the City Attorney’s Office for lost revenue, cost of repairs and replacement of parking equipment from the losses of the December 30, 2021, flooding incident. The total amount of the claim is $265,820 with a deadline of June.
As previously mentioned, there has been numerous delays from IMCO to pay our operating expenses which subsequently, have delayed our financial reporting. IMCO has hired additional staffing specifically for municipal locations it operates. Mr. Hashimoto is optimistic that with this addition, the accounts payable and receivables will improve.
In order to deter vehicle break ins, Northern Police Station has begun to park vehicles inside the garage to help maintain public safety but due to shortage of patrol vehicles, they are not parked regularly.
The Cherry Blossom Festival was held earlier in the month and experienced an excellent turnout. Revenues increased $5,600 more than 2019 and $6,125 over 2018. Due to cancellation of the parade, there was more turnover of parking spaces during the four-day event.
In response to demonstrated demand in parking, the MTA has approved to increase garage staffing. We have increased operating hours back to its original hours, as follows:
Main Garage from 5:00 a.m. to 2:00 a.m., Mondays through Fridays. Saturdays and Sundays from 9:00 a.m. to 2:00 a.m.
Fillmore Annex Garage from 6:00 a.m. to 1:00 a.m. Saturdays and Sundays from 10:00 a.m. to 1:00 a.m.
Director Kiniris asked about the status of the AMC theaters shut down. Corporate Manager responded that the emergency generator had not been working properly until repairs can be made.
Director Hsu asked for clarification regarding transient vehicles increasing but revenues are down. Mr. Hashimoto clarified that both numbers are up but cumulatively, the revenues is taking longer to recover because of the pandemic shutdowns.
Director Hsu also asked how the merchants can become more engaged in the marketing and promotion of the garage in particular, the validation program and how we can all capitalize on the program. In addition, Director Hsu mentioned increasing EV chargers to attract more garage use.
Mr. Hashimoto stated that there was previous discussion on starting an ad-hoc committee of the Marketing Committee specifically to what Director Hsu is referring to. The discussion of creating an ad-hoc committee should continue but with more the merchants involved.
Mr. Malone stated that the MTA is expanding the EV charger program at its city garages and will know more in September.
Validations – Based on current trends experienced at other city garages, Mr. Malone has noticed that the demand for parking validations is not as high as it once was to attract customers. Mr. Malone suggested that we reassess the validation program to determine how it has changed since it was implemented. Mr. Hashimoto will provide a summary for the board at the next meeting.
5. Corporate Counsel’s Report
Ms. Cheng shared that she has corresponded with the City Attorney’s office and reviewed the requirements for filing a claim for loss due to the water leaks and flooding incident.
Ms. Cheng has also worked with SFMTA on the extension of the operator’s contract and amendment to the lease document.
Counsel reminded the board that the appointment of ad hoc committees does not require a change of the Bylaws. This is in response to the interest to add an ad hoc committee to focus on developing marketing programs based on web data collected. A committee or task force can be created by the board chair and voted on by the board.
6. SFMTA Report
Rob Malone provided the following updates:
SFMTA is in the final stage of reviewing responses to the RFPs.
The Lease amendment as well as the operator’s contract is in the process of completion.
SFMTA has been working with IMCO to expedite accounting deliverables and IMCO has recently been back on schedule. SFMTA will continue to monitor payment schedules.
Regarding the operators’ contract – SFMTA is considering bringing all the operators’ contract under the department more directly instead of issuing separate RFPs. The factors being considered include efficiencies, customer service, and balancing costs and benefits of the different approaches for managing the operators.
NOTE: DUE TO DIRECTORS’ SCHEDULES, ITEM 8 WAS MOVED AHEAD IN THE AGENDA.
7. Committee Reports
Community Participation and Marketing Funds
Director Noguchi reported that the committee met twice on April 12 and April 21 to consider four requests.
Community Participation Fund – the Fund started with $35,000 and current balance is at $20,000.
Sakura Matsuri Inc. requested $5,000 to promote the Cherry Blossom Festival which turned out to be a very successful event. The committee recommended approval of the request.
A motion to approve was made by director Ong and seconded by Director Chin. The motion was unanimously adopted.
NextSF requested $4,500 for a webinar program to focus on promoting Japanese sake and a few Japantown businesses that serve sake. The committee recommended approval.
A motion to approve was made by Director Ong and seconded by Director Ono. The motion was unanimously approved.
Marketing Fund – the Fund started with $25,000 and has a current balance of 19,049
-The nonprofit Dear Community requested $5,000 to support a program to promote Asian neighborhood business corridors, including a merchant walk in Japantown and to combat Asian Hate. The committee recommend approval.
A motion to approve was made by Director Ong and seconded by Director Chin. The motion was unanimously approved.
-The Portsmouth Plaza Parking Corporation requested a contribution of $1,000 in celebration of its 50th anniversary gala on April 29. In consideration of the need to support other neighborhood garages, the committee recommended sponsorship at the $2,500 level.
A motion to approve was made by Director Ono and seconded by Director Ong. The motion was unanimously approved.
- Contract Review
Director Chin reported that the committee met last Thursday and there were two action items related to the extension of IMCO’s contract.
-Recommendation to approve the first amendment to the 2013 Lease to allow the extension of IMCO’s contract.
A motion to approve was made by Director Hsu and seconded by Director Ong. The motion was adopted unanimously.
-Recommendation to approve the fourth amendment to the Garage Operator’s Agreement, extending the contract to February 26, 2023, to coincide with the end of JCGC’s lease agreement with SFMTA.
A motion to approve was made by Director Hsu and seconded by Director Ono. The motion was adopted unanimously.
At this time, Mr. Bekele of IMCO introduced Laura Lierz. As the Vice President of Municipal Accounts, Laura will be working on the accounting process and ensuring that the monthly report and payments are back to schedule.
8. Treasurer’s Report
Director Chin discussed the highlights of the December 2021 and January 2022 financial statements.
A motion to accept the December 2021 financial statement was made by Director Kiniris and seconded by Director Hsu. The motion was adopted unanimously.
A motion to accept the January 2022 financial statement was made by Director Noguchi and seconded by Director Kiniris. The motion was adopted unanimously.
9. Website update
Greg Viloria discussed highlights in the Quarterly Update for the first quarter of the year.
Data shows that web traffic increased 300% from 2021. The five top search pages haven’t changed, with the top search being “Japantown parking.”
The most noted development is the increase in mobile search traffic, and this provides a marketing opportunity for the organization. In addition, the Cherry Blossom Festival and Spring Break resulted in an increase in web volume. The increase in cultural exhibit also helped. Thus, the marketing of the garage should be more mobile-driven and merchant-driven.
Director Kiniris asked for more description of opportunities related to mobile apps.
Greg responded that mobile app is driven by app profile. Three quarters of the search apps are mobile apps and not desktop. Thus, the board should strongly consider mobile advertisement.
Director Choi suggested that the garage can put up mobile banner ads during AAPI Heritage Month celebration in May. Mr. Viloria acknowledged the suggestion.
Ms. Cheng shared that there will be a big performing arts festival in Japantown on May 14 organized by the API Cultural Center.
Director Hsu commented on the need to take advantage of the data and events information and urged the marketing committee to focus on data and planning. He also asked about who is responsible to keep an eye on events and what is the mechanism to strategize on marketing opportunities.
Director Ong shared that JCGC can develop an event calendar and urged an ad hoc committee to focus on marketing be established as the organization heads into a new fiscal year. Ms. Cheng reminded the board that the Board Chair can appoint such an ad hoc committee and that this does not require any action on amending the Bylaws.
10. Community Updates
Japantown Task Force
Executive Director Emily Murase provided highlights including the following topics:
The redistricting process that impacts Japantown
Japan Center Mall upcoming renovations
Peace Plaza planning – Townhall in the summer
The fountains on Buchanan – the Ruth Asawa family has expressed concerns over maintaining the upkeep of the fountains
There will be flag raising on June 4 for Pride Month for the first time
Ongoing work with Greg Viloria and Grace Horikiri about night market ideas to attract the younger crowd
Corporate Manager Hashimoto shared the three options of the revised sketches for Peace Plaza re-design showing water features, rocks and landscapes. Unfortunately, there is sad news about increased costs and the current estimated short fall is $8 million. The project is expected to be ready for bid for work to begin in 2023 with construction to begin in 2024.
Japantown Community Benefit District
Ms. Horikiri provided highlights in the following areas:
Covid testing continues
The economic impact report was completed triggered from the Hotel Buchanan sale and will be reviewed by the CBD board
Safe City Camera project will be expanding to include areas outside of the CBDs boundaries.
Marketing projects being implemented include new streetlamp banners
The neighborhood ambassadors noted an increase of homeless encampment
11. Garage Operations and Security Report
Solomon Abayneh the facility manager discussed highlights from a written report that was shared with the board.
There were 21 reported break ins in February and 29 in March. There has been an increase in homeless incidents since the clean up in the Tenderloin and at Civic Center.
12/13. Closed Session – there was no closed session
14. General Public Comment
Corporate Manager Hashimoto confirmed that there was no one in queue to make comments.
15. Old/New Business, Announcements – None
16. Adjournment – The meeting was adjourned at 12:25pm.
Respectfully submitted,
Claudine Cheng and Richard Hashimoto for
Jan Masaoka