HomeMy WebLinkAboutSSF Conf Center Regular Authority Agenda & Packet 12/18/17
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SOUTH SAN FRANCISCO CONFERENCE CENTER
REGULAR AUTHORITY MEETING
Monday, December 18, 2017 – 5:15 p.m.
255 South Airport Blvd., South San Francisco, CA 94080
AGENDA
Call to Order – Pledge of Allegiance – Roll Call
Public Comment:
Note: For matters not otherwise listed on this agenda, the Authority welcomes your comments but is prohibited by State Law f rom
discussing the items raised. Such items may be taken under consideration and referred to staff for further action as appropriate.
Presentations:
1. Presentation by Sheldon Chavan, CPA, Partner of Chavan & Associates, LLP regarding Fiscal Year 2016-2017 Annual Financial
Statement.
Action Items:
1. Review/Approval of Fiscal Year 2016-2017 Financial Statement and approval to submit same to the South San Francisco City
Council.
2. Review/Approval of Minutes from the October 16, 2017 Regular Meeting.
3. Review/Approval of South San Francisco Conference Center Authority Capitalization Policy and Procedures.
4. Review/Approval of South San Francisco Conference Center Authority Credit Card Policy .
5. Review/Approval of the Authority’s 2018-2019 Regular Authority Board Meetings Schedule.
Discussion Item/s:
1. Review of October 2017 Preliminary Financial Statement.
2. Review of Event Services.
Authority Announcements, Referrals and Future Agenda Items:
1. Election of Authority Chairperson and Vice Chairperson for year 2018 on Tuesday, February 20, 2018 Regular Authority
Meeting.
2. Appoint Budget Subcommittee for the Fiscal Year 2018-2019 Budget Process on Tuesday, February 20, 2018 Regular
Authority Meeting.
Executive Director’s Report:
1. Sales and Operations Update
Next Regular Authority Board Meeting will be on Tuesday, February 20, 2018 at 5:15 p.m.
Adjourn
MINUTES
REGULAR MEETING OF THE
SOUTH SAN FRANCISCO
CONFERENCE CENTER AUTHORITY
South San Francisco Conference Center
255 South Airport Blvd., South San Francisco, CA 94080
October 16, 2017
Meeting was called to order at 5:15 p.m. by Authority Chairperson Garbarino.
Authority Members Present: Mark Addiego, Tony Clifford, Richard Garbarino, Jeff
MacDonald, Liza Normandy, Buenaflor Nicolas, Paul Formosa
and Jim McGuire.
Authority Members Absent: B.J. Patel and Ray Yoschak
Staff Present: Lindsay D’Andrea and Dean Grubl
Authority Chairperson Garbarino requested a roll call and asked the Authority to stand for the
pledge of allegiance.
Public Comment: There was no public comment.
Action Items:
1. Review/Approval of Minutes from the August 21, 2017 Regular Meeting.
Executive Director Grubl mentioned to the Authority that the August 21, 2017 Regular Meeting
minutes had been revised on page two, under Action Items, Item Number Two to state that
Authority Member Formosa was absent. Member Addiego motioned to approve the revised
minutes and Authority Member Nicolas seconded the motion. The Authority Agreed
unanimously.
2. Review/Approval of Fiscal Year 2017-2018 Amended Budget.
Executive Director Grubl stated to the Authority that during the last Regular Authority Board
Meeting, the Authority approved the reimbursement of the City of South San Francisco for the
cost of their contribution to the expansion and feasibility study for the Conference Center. He
stated the total amount is $62,337. This line item was not budgeted in the approved Fiscal
Year 2017-18 budget in June 2017.
Grubl also discussed amending the Capital Budget for the fiscal year to include adding the
following items to the Capital Improvement Budget: upgrading the internet management
Authority Minutes
October 16, 2017
equipment services for the Conference Center clients, purchasing a scissor lift and two camera
risers.
Grubl discussed with the Authority that the Revenue Projections for the Fiscal year will be
amended as well. He stated that the Conference Sales team is at 87% of rental income at the
end of the first quarter for this fiscal year. The amended budget will increase Conference
Center’s revenue projections by $158,000.
Grubl stated that he would like to do a one-time cost of living adjustment for the employees. He
presented to the Authority an amended salary schedule for the fiscal year 2017-18. The salary
schedule would increase the line item by a little over $55,000. He also stated that there would
be no incentive or increase in employees’ salaries for the remainder of the fiscal year.
Grubl commented that with the amended budget that is being presented, the projected
unrestricted fund balance at the end of the fiscal year 2017-2018 would increase by $83,000
over the approved budget.
After a brief discussion, Authority Member Addiego made a motion to approve the Fiscal Year
2017-2018 Amended Budget and Authority Member MacDonald seconded the motion. The
Authority Agreed unanimously.
3. Review/Approve Resolution Approving a Third Amendment to Employment
Agreement between the South San Francisco Conference Center Authority and Dean
Grubl.
Authority Member Addiego motioned to approve the Resolution approving a third amendment
to the employment agreement between the South San Francisco Conference Center Authority
and Dean Grubl. Authority Member Nicolas seconded the motion. The Authority Agreed
unanimously.
Discussion Item/s:
1. Review of July Financial Statement for Fiscal Year 2017-2018.
Grubl reviewed the July Financial Statement for the Authority. He stated that July’s Operating
Revenue exceeded last year’s revenue by $33,000, however, was at 99.41% of budget for the
month of July. Conference Center Tax revenue was at 98.41% of budget for the month of July.
The Total Operating Expenditures were approximately $9,000 below what was budgeted.
2. Review of Event Services for Fiscal Year 2017-2018.
Grubl reviewed the Event Services for the months of July and August for the Authority. He
mentioned that Event Services is at 12.73% of budget for the fiscal year with this July being a
very strong month in equipment rental.
Authority Minutes
October 16, 2017
Authority Announcements, Referrals and Future Agenda Items:
Grubl reminded the Authority that the “Taste of South San Francisco” will be held at the
Conference Center on Thursday, November 2, 2017.
Executive Director’s Report:
1. Update of the FY2017-18 Capital Improvement Projects & Seven (7) Year Capital Plan.
Grubl reviewed the Capital Improvement Projects for the Fiscal Year 2017-18, along with the
seven (7) year Capital Plan for the Authority. He mentioned that the two HVAC Units have been
installed, the two gas stock pot ranges have been replaced and installed, the five kitchen racks
have been purchased, the upgrading and replacing of the emergency lighting has been
completed. He stated the repairing of the roof with ceramic flex coat is completed, however,
the Operations team will be inspecting the roof before they sign off on the project.
Grubl presented a slide show that Jorge Cruz, Director of Facility Operations and Waldemar
Tulik, Facility Services Manager assemble together to give an overview of what Non-Capital
Improvement Projects the Operations Department has been doing the last three months. Those
projects included: Building Exterior Pressure Wash and Maintenance, Kitchen Water Booster
Heater for Sink, Exterior Signage Up lights LED Retrofit, Replace Restroom Door Hardware,
Epoxy Rocks in Planters on North East Corner of the Building, Center Island Landscaping, Replace
Business Center PCs and Printer, Repair Kitchen Door Jambs, Paint Oyster Point Room interior
lower wall, and Paint South Pre-Function Lobby near Salon J.
2. Sales and Operations Update
Grubl mentioned to the Authority that the Conference Center’s Director of Sales, Kathleen
Kearney submitted a power point presentation on the sales activities. He reviewed the pace
report with the Authority and that sales are at 87% of this year’s rental goal for the following
reasons: not selling sections of the ballroom for smaller meetings, pushing bookings on the date
the Conference Center need’s business, charging for double sessions, pushing set up days for
larger groups and attempting to keep one-day programs out of the Tuesday through Thursday
pattern to fill need dates of Monday and Friday. Grubl mentioned that with the amended
budget the Authority just passed, sales are at 77% of the new rental goal budget for the fiscal
year.
Grubl informed the Authority that the Conference Center conducted a sales blitz and a reception
in Sacramento the week of September 11th. South San Francisco Hotels that participated in the
sales mission were: A/C Hotel, Holiday Inn and Hotel Focus. He stated that six (6) request for
proposals were generated, one site inspection, two groups have gone to contract with the
Conference Center and seven (7) strong prospects resulted in the three (3) day sales mission.
Authority Minutes
October 16, 2017
The Catering Department, along with the Sales Department conducted a “Christmas in August”
event. The holiday event produced two signed contracts and three prospects for the Catering
Department.
Grubl reviewed with the Authority the re-branding of the Conference Center and advertising
campaign for the fiscal year. The re-branding campaign introduces two new logos for the
Conference Center. The new advertising campaign will target customers by highlighting the
Center’s location, 25 years of excellence, innovation in South San Francisco and by celebrating
diversity. Grubl presented photos of the new logo, as well as, the advertising campaign for the
coming year.
Grubl mentioned that the Sales team is planning on attending several industry events in
November and December, along with the 25th celebration of the Conference Center in April
2018, a Silicon Valley Sales Mission and a sales mission in Sacramento.
Chairperson Garbarino announced the next Regular Meeting is scheduled for Monday,
December 18, 2017 at 5:15 p.m. The meeting was adjourned at 6:30 p.m.
_____________________ ___________________
Richard Garbarino Dean Grubl
Authority Chairperson Executive Director
South San Francisco
Conference Center Authority
Capitalization Policy and
Procedures
SOUTH SAN FRANCISCO CONFERENCE CENTER AUTHORITY CAPITALIZATION POLICY AND PROCEDURES
This policy applies only to land, buildings and equipment used in the operations of the South San Francisco
Conference Center.
Capitalized assets include the following:
Land – Cost to be capitalized includes all costs connected with acquisition and cost incurred in preparing the
land for its ultimate use. These include, but are not limited to, the cost of purchase, appraisals, professional
services, and title insurance.
Land Improvements – Improvements to be capitalized include the cost of landscape, surface parking lots, and
outdoor public areas having a cost in excess of $1,000. All cost of land improvements associated with newly
constructed buildings will be capitalized.
Building – Cost to be capitalized includes all cost related to acquisition or construction. Acquisition cost
includes, but is not limited to, the cost of purchase, professional services, appraisals, and title insurance.
Construction costs include, but are not limited to, the cost of professional services, materials, labor, and site
preparation.
Building Renovations & Modernization – Building improvements to be capitalized are significant alterations or
structural changes that a) cost in excess of $1,000 and b) meet one or more of the following conditions:
• The project extends the useful life of the building beyond what was originally scheduled.
• The project substantially changes the use or purpose of the original space.
• The project expands the total square footage of the building.
The book value of a renovated building will be reduced by the cost of the components being replaced if such
costs can be easily ascertained. If the book value of the asset being renovated is unknown, there will be no cost
reduction of the capital asset.
Purchased Equipment – Purchased equipment to be capitalized is an article of nonexpendable tangible personal
property with a useful life of more than one (1) year and a cost of $1,000 or more per unit.
Leasehold Improvements – Any improvements to leased premises similar to those identified under “Building
Renovations”, “Land Improvements” and “Capital Improvement” with a useful life of more than one year and a
cost of $2,500.
Sales or Disposals of Capitalized Assets – The book value of land, buildings, equipment, or furniture or fixtures
will be removed from the accounting system when sold or disposed of. The South San Francisco Conference
Center Fixed Asset Disposal Form must be completed. Exhibit A
SOUTH SAN FRANCISCO CONFERENCE CENTER AUTHORITY CAPITALIZATION POLICY AND PROCEDURES
Depreciation on all capital assets is computed using a straight-line basis over the following estimated useful
lives:
Assets Years
Improvement of Site 5-10
Building(s) 30-40
Building Improvements 5-10
Furniture and Fixtures 5-10
Food Service Equipment 5-15
Kitchen Tableware 5-10
Office Equipment 2-5
Computers, tablets and Mobile Devices 2-5
Telecommunications 2-5
Maintenance Equipment 2-5
Machinery and Vehicles 5-10
SOUTH SAN FRANCISCO CONFERENCE CENTER AUTHORITY CAPITALIZATION POLICY AND PROCEDURES
Exhibit A
Page 1 of 1
Capitalization Policy and Procedures
South San Francisco Conference Center
Fixed Asset Disposal Form
Item Description:
Model Number/Serial Number:
Item Location:
Market Value:
Reason for Disposal:
Name of person requesting disposal:
Signature: _________________________________________ Date: __________________
Disposal Method:
Disposal Date:
Proceeds of Sale:
or
Cost of Disposal:
Sold To:
Executive Director Signature: _______________________________________________
Date: __________________________________
255 South Airport Boulevard | South San Francisco | California | 94080
t: 650-877-8787 | f: 650-877-5356
ssfconf.com
South San Francisco Conference Center Authority Credit Cards Policy
The South San Francisco Conference Center Authority (Authority) recognizes the value of an efficient
method of purchasing authorized goods, supplies and services, including method of payment and record
keeping for expenses. Authority credit cards are authorized for use within this policy, administrative
regulation and guidelines.
Use of Authority issued credit cards is not intended to replace effective procurement planning that enables
volume discounts, best value purchasing practices, transactions that should be purchase order based, or
to acquire items available through established purchase contracts.
The Executive Director shall develop administrative regulations and credit card use guidelines specifying in
part:
• Those authorized to use credit cards.
• The types of expenses that can be paid by credit card.
• Procedures for the proper supervision and use of credit cards.
• Other relevant guidelines governing use and accountability.
• A requirement for obtaining a signed and dated cardholder acknowledgement form signifying
cardholder receipt of card and acceptance and understanding of guidelines for use.
Under no circumstances are Authority issued credit cards to be used for personal expenses.
Purchases that are unauthorized, illegal, personal in nature, perceived to be unethical or that reflect a
conflict of interest, or use that does not adhere to credit card use Authority policy/administrative
regulation or credit card use guidelines, or otherwise violate the intent of this policy may result in card
revocation, sanction, repayment to the Authority, legal action and/or be grounds for termination of
employment.
South San Francisco Conference Center Authority Credit Cards:
The Authority may choose to participate in a credit card program administered through an issuing bank or
other corporate legal entity.
There are various people involved in the credit card program to ensure its success and incorporate proper
checks and balances. The following are titles referred to and a description of their functions:
255 South Airport Boulevard | South San Francisco | California | 94080
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Administer:
The person responsible for the implementation and continued monitoring of the credit card program is the
Chief Financial Officer, and is the key point of contact for Cardholders. The Chief Financial Officer shall
serve as the Coordinator between the issuin g bank and the Authority.
Cardholder:
A Cardholder is an authorized employee issued a credit card, who is responsible for committing purchases
for the Authority in accordance with program guidelines and Authority policies and procedures. The
Cardholder ensures that he/she submits a reconciled Statement of Account and forwards all slips/receipts,
within five (5) business days after receipt to the Chief Financial Officer. The cardholder is responsible for
ensuring that his/her Statement of Account (monthly statement) is reviewed for accuracy and forwarded
to the Chief Financial Officer also within five (5) business days after receipt.
GENERAL
Restricted Uses:
Several items are restricted from purchase by the Authority. Misuse of the card or failure to follow policies,
procedures or guidelines governing card usage will result in revocation of the credit card and may result in
disciplinary action up to termination.
Mandatory restrictions on all cards imposed by the issuing bank(s) include:
• Cash advances
• Rental or lease of land
• Gambling, betting
• Weapons or firearms
• Securities, insurance
• Political or religious organizations
• Tax payment
• Court costs, fines, bail, or bond payments
The credit card cannot be used for personal purchases at any time.
255 South Airport Boulevard | South San Francisco | California | 94080
t: 650-877-8787 | f: 650-877-5356
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Lost or Stolen Cards and Personal Information:
Cardholders are not held personally responsible for cards that are lost or stolen, or that have outside
fraudulent transactions. Issuing banks are not allowed to collect personal information, nor should any
employee be required to provide the issuing bank any personal information (i.e. social security number) in
order to be issued a card.
Program Guidelines:
Credit card use guidelines shall be maintained and given to each cardholder by the Chief Financial Officer.
These guidelines are incorporated by reference as an extension of intent of this AR to institute and enforce
a credit card program that is clearly defined and allows for appropriate employee and Authority
accountability and enforcement measures to be taken.
Records shall be kept by the Chief Financial Officer that include, at minimum:
• Titles, names, and site locations of individuals authorized to be issued cards.
• Maximum single transaction and monthly limitations.
• Restrictions imposed on types of purchases allowed.
• Cardholder request forms signed by the cardholder and Chief Financial Officer.
• Acknowledgement form signed by the cardholder indicating receipt of card and understanding of the
guidelines, policies and regulations governing card usage.
The following applies in regards to a credit card issued to an employee:
The credit card is issued in an individual employee's name and may not be used by anyone else. Cards
should be safely kept and secured. Cardholders are responsible for the security of their card and all
transactions made by them or with their knowledge.
The credit card must not be used for personal purchases. If personal purchases are made, the situation
will be handled as a misuse of Authority funds in accordance with Authority’s Policy on misuse of funds
and may lead to disciplinary action up to termination of employment and possible other legal remedies.
Single, daily and monthly transaction limits must be adhered to.
The credit card is not intended to avoid or bypass the Purchase Order process but to facilitate efficient yet
accountable on-line purchasing, typical small dollar volume transactions and travel arrangements and
expenditures. All purchases will require a receipt of said purchase. Use of the card is not intended to
replace effective procurement planning that enables volume discounts or to a pply sound and reasonable
purchasing practice in achieving best value purchases.
255 South Airport Boulevard | South San Francisco | California | 94080
t: 650-877-8787 | f: 650-877-5356
ssfconf.com
Credit card holders must immediately return their card to the Chief Financial Officer upon transfer to
another position, separation of employment from The South San Francisco Conference Center Authority,
or upon request by the Executive Director.
Employee’s Name (printed): ______________________________________________________
Employee’s Signature: ________________________________ Date: _____________________
255 South Airport Boulevard | South San Francisco | California | 94080
t: 650-877-8787 | f: 650-877-5356
ssfconf.com
South San Francisco Conference Center Authority
Authority Board Regular Meetings
2018-2019
5:15 p.m.
Tuesday, February 20, 2018 (Monday is President’s Day Holiday)
Monday, April 16, 2018
Monday, June 4, 2018 (FY 2018-19 Budget)
Monday, August 20, 2018
Monday, October 15, 2018
Monday, December 17, 2018 (Holiday Dinner)
Tuesday, February 19, 2019 (Monday is President’s Day Holiday)
Monday, April 15, 2019
Monday, June 3, 2019 (FY 2019-20 Budget)
Monday, August 19, 2019
Monday, October 21, 2019
Monday, December 16, 2019 (Holiday Dinner)
Jul-17Aug-17Sep-17Oct-17Nov-17Dec-17Jan-18Feb-18Mar-18Apr-18May-18Jun-18Total YTDGoalAudio Visual Revenue7,965.25 4,080.60 18,887.70 11,089.05 13,981.60 56,004.20 51.28%Internet Service1,000.00 800.00 1,579.90 2,250.00 1,600.00 7,229.90 6.62%Electrical Usage385.00 870.00 2,900.00 1,575.00 1,155.00 6,885.00 6.30%Equipment Rent/Sales9,067.44 3,848.50 10,228.80 9,177.18 6,772.67 39,094.59 35.80%Total Additional Service Revenue18,417.69 9,599.10 33,596.40 24,091.23 23,509.27 109,213.69 250,000.00 Percentage of yearly revenue43.69%Additional Service Revenue Details:1Audio Visual RevenueSSFCC Collect 40% of AV rental Revenue plus 25% of AV Service Charge Revenue2Internet Serviceinclude Wired Ethernets Service, Group Wi-Fi and Individual Wi-Fi purchases3Electrical Usage RevenueRevenue for extensive usage of electricity: exhibits, power strip to attendees, entertainment 4Equipment Rent/Salesinculde rental of exhibit tables, dance floors, easels, labor for reset rooms, phone lines, copies/faxes, linens, shipping charges, hygiene products in the restroomsSouth San Francisco Conference Center Event Service Revenue Subcategories
Operations Capital Improvement Budget Report
Fiscal Year : 2017-2018
Amended Budget on October 15, 2017
Project Name Start Date Status Budget Actual Cost Over/Under
1 Replace Two (2) HVAC Units 7/18/2017 Completed on August 14, 2017 57,000.00 54,510.00 -2,490.00
2 Permanent Roof Upgrade with Silicone 7/18/2017 Completed on October 24, 2017 275,000.00 271,300.00 -3,700.00
3 Replace and Upgrade Emergency Lights 7/18/2017 Completed on August 14, 2017 68,500.00 70,460.00 1,960.00
4 Replace two (2) Stock Por Ranges (Kitchen ) 8/01/2017 Completed on August 15, 2017 2,500.00 2,071.96 -428.04
5 Customer Made Five (5) Kitchen Racks w/ covers 8/02/2017 Completed on August 28, 2017 5,600.00 5,991.49 391.49
6.- Up-Grade Wi-Fi System 10/18/2017 Completed on November 29, 2017 25,000.00 25,695.90 695.9
7.- Purchase of one (1) Scissor Lift (For Maintenance) 10/17/2017 Completed on October 26, 2017 15,000.00 11,684.29 3,315.71
8.- Two (2) Cameras Risers 4'X4' Staging 10/19/2017 Completed on October 19, 2017 2,750 2,349.89 400.11
Total 451,350.00 444,063.53 7,286.47