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HomeMy WebLinkAboutSSF Conf Center Authority Regular Agenda & Packet 08 June 2020 SOUTH SAN FRANCISCO CONFERENCE CENTER REGULAR AUTHORITY MEETING TELE/VIDEO CONFERENCE MEETING NOTICE Monday, June 8, 2020 – 12:30 p.m. 255 South Airport Blvd., South San Francisco, CA 94080 AGENDA THE CONFERENCE CENTER AUTHORITY MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF THE GOVERNOR’S EXECUTIVE ORDERS N-25-20 AND N-29-20 ALLOWING FOR DEVIATION OF TELECONFERENCE RULES REQUIRED BY THE BROWN ACT & PURSUANT TO THE ORDER OF THE HEALTH OFFICER OF SAN MATEO COUNTY DATED APRIL 29, 2020, AS THIS MEETING IS NECESSARY SO THAT THE AUTHORITY CAN CONDUCT NECESSARY BUSINESS AND IS PERMITTED UNDER THE ORDER AS AN ESSENTIAL GOVERNMENTAL FUNCTION. THE TELECONFERENCE MEETING IDENTIFICATION NUMBER: https://us02web.zoom.us/j/85017005063?pwd=MU5JU3RCK1pVUTF5cFU2Wjg2bm9KQT09 Call to Order – Roll Call Public Comment: Note: Members of the public wishing to participate are encouraged to submit public comments in writing in advance of the meeting by 5:00 p.m. on Friday, June 5, 2020. Please email public comments to: [email protected]. Public comments must identify the Agenda Item Number in the SUBJECT Line of the email. The comments will be read into the record, with a maximum allowance of 3 minutes per individual comment, subject to the Chairperson's discretion. If a comment is received after the agenda item is heard but before the close of the meeting, the comment will still be included as a part of the record of the meeting and read into the record. For matters not otherwise listed on this agenda, the Authority welcomes your comments but is prohibited by State Law from discussing the items raised. Such items may be taken under consideration and referred to staff for further action as appropriate. Action Items: 1. Review/Approval of Minutes from the May 18, 2020 Regular Meeting. 2. Review/Approval of Fiscal Year 2020-2021 South San Francisco Conference Center Budget. 3. Review/Approval of Fiscal Year 2020-2021 Interim Funding for Ninety (90) days. 4. Review/Approve Resolution approving Sixth Amendment to Employment Agreement with Dean Grubl Discussion Item/s: Authority Announcements, Referrals and Future Agenda Items: Executive Director’s Report: 1. Sales and Operations Activity Report CLOSED SESSION: Next Regular Authority Board Meeting will be on Monday, August 17, 2020 at 5:15 p.m. Adjourn 255 South Airport Boulevard | South San Francisco | California | 94080 t: 650-877-8787 ssfconf.com 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 May 18, 2020 Meeting was called to order at 12:31 p.m. by Authority Chairperson Garbarino. Authority Members Present: Buenaflor Nicolas, Vanessa McGovern, B.J. Patel, Tony Clifford, Liza Normandy, Reena Maharaj, Francois Camou, Jeff MacDonald, Jim McGuire, and Richard Garbarino. Authority Members Absent: N/A Staff Present: Steve Mattas, Katie Leung, and Dean Grubl Authority Chairperson Garbarino requested a roll call. Public Comment: There was no public comment. Action Items: 1. Review/Approval of Minutes from the February 18, 2020 Regular Meeting. Authority Member McGuire moved to approve the minutes of the previous regular meeting and Authority Member Clifford seconded the motion. The Authority agreed unanimously. Discussion Item/s: 1. Presentation and Review FY2020-2021 Proposed DRAFT Budget. Executive Director Grubl reviewed the proposed budget document as recommended by the Budget Sub- Committee (Authority Members Clifford, Maharaja, McGuire, and McGovern). The proposed Fiscal Year (FY) 2020-21 budget included a total revenue projection $3,698,263 and a total expenditure request of $3,342,456 and a projected Gross Operating budget surplus of $355,807. Grubl reminded the Conference Center Authority Board that for the second year in a row, depreciation has been factored into the budget, resulting a projected net loss of $255,563 for FY2020-21. 255 South Airport Boulevard | South San Francisco | California | 94080 t: 650-877-8787 ssfconf.com Authority Minutes May 18, 2020 Page Two Also, included in the FY2020-21 budget was a capital improvement budget of $107,500. The Conference Center Tax was projected based on the assumption of 58% occupancy for the coming fiscal year. Grubl stated that in view of the COVID-19 pandemic, staff projected the occupancy rate for July at 25%, August at 35%, September through December at 50%, January through March at 70% and April through June at 75%. The projected Unrestricted Fund Balance at the end of June 30, 2020 will be approximately $3,831,998 and for June 30, 2021, it is projected to be at $3,851,998. Grubl mentioned to the Authority, that they can anticipate in the coming Fiscal Year the budget will be amended based upon the adverse effects of COVID-19, re-opening of the building, business in place and future occupancy rates of the hotels. Authority Announcements, Referrals and Future Agenda Items: Grubl mentioned to the Authority that the June 8, 2020 Regular Authority Meeting will be held via ZOOM meeting again. The Shelter-in-Place order in San Mateo County is in effect until May 31, 2020 and Grubl mentioned that the Operations staff needs two weeks to disinfect the building during the first part of June. Executive Director’s Report: 1. Review Sales/Operations Recovery Plan Grubl presented a slide presentation highlighting what the Sales and Catering Departments have assembled regarding a recovery plan of action for the Conference Center and Hotel partners. He informed the Authority that they have designed a “v alue added” packages that includes: Virtual Meeting Package, a Social Package, a Government Package, and a Tradeshow Package. He mentioned that the Virtual Meetings Package is expected to have good demand per recent polls reflecting 83% of planners expect to add virtual meetings to their events in the coming months. Also, these packages will be added to the Conference Center’s website and included in follow up emails to clients from the Sales and Catering’s telemarketing campaign. 255 South Airport Boulevard | South San Francisco | California | 94080 t: 650-877-8787 ssfconf.com Authority Minutes May 18, 2020 Page Three Grubl mentioned Sales will be conducting a Hospitality meeting with local hotel partners to work together on a recovery plan for all. He informed the Authority that Catering has developed several videos of “Cooking with Mikey” where in, the chef is shown preparing some favorite dishes from the Conference Center’s kitchen and demonstrating how the dishes are prepared. The videos are being posted online through the Conference Center’s website, social media outlets, and to the entire database. Sales has also developed “Multiple Event Building Strategies, Single Event Building Strategies” to help alleviate client fears over COVID-19 and to have a clean/safe environment to conduct their meetings and events which includes: social distancing best practices signage, floor plans for social distancing, contractual flexibility and added sanitation stations through out the building. In concert with the Conference Center Catering company, they have developed food service strategies to mitigate any fears that clients might have regarding food safety. In the Operations Department, Grubl informed the Authority that the Conference Center’s Operation staff has implemented a cleaning personal protective equipment and procedures to disinfect the Conference Center before and after clients have used the facility. Operations has also put in place procedures for staff entering and exiting the building. The Authority went into closed session at 1:31 p.m. and adjourned the closed session at 2:12 p.m. There were no reportable actions from closed session. Chairperson Garbarino announced the next Regular Authority Board Meeting will be on Monday, June 8, 2020 at 12:30 p.m. via ZOOM. The meeting was adjourned at 2:15 p.m. _____________________ ___________________ Richard Garbarino Dean Grubl Authority Chairperson Executive Director CLOSED SESSION: 1. Public Employee Performance Evaluation - Executive Director (Pursuant to Government Code Section 54957) 2. Conference with Labor Negotiator (Pursuant to Government Code Section 54957.6) Unrepresented Employee: Executive Director Authority Negotiators: Steve Mattas Staff Report DATE: June 24, 2020 TO: Mayor, Vice Mayor and Council Members FROM: Dean Grubl, South San Francisco Conference Center Executive Director SUBJECT: A RESOLUTION AUTHORIZING FISCAL YEAR 2020-2021 INTERIM FUNDING FOR THE SOUTH SAN FRANCISCO CONFERENCE CENTER RECOMMENDATION It is recommended that the City Council approve a resolution authorizing interim spending authority for the first 90 days of Fiscal Year (FY) 2020-2021 for the South San Francisco Conference Center. BACKGROUND To enable the continued operation of the Conference Center while the FY 2020-2021 budget is finalized, it is recommended that the City Council approve a resolution authorizing interim spending authority for FY 2020-2021 for ninety (90) days through September 28, 2020. The interim funding appropriation is one fourth (1/4) of the approved FY 2019-2020 budget. This interim authority will only be necessary if the Conference Center Authority and City Council do not approve the Conference Center Authority FY 2020-21 budget prior to June 30, 2020. The Conference Center Authority met on Monday, June 8, 2020 to consider the FY 2020-20210 budget. By: Approved: _____________________ Dean Grubl Mike Futrell Executive Director City Manager Attachment: Resolution Authorizing Fiscal Year 2020-2021 Interim Funding for the South San Francisco Conference Center. 2662812.1 RESOLUTION NO. _______ CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING INTERIM FUNDING FOR FISCAL YEAR 2020-21 FOR THE SOUTH SAN FRANCISCO CONFERENCE CENTER WHEREAS, estimates of revenues from all sources and estimates of expenditures required for the proper conduct of activities of the South San Francisco Conference Center for Fiscal Year 2020-21 are being prepared; and WHEREAS, fiscal conditions may require additional time for development of budget priorities; and WHEREAS, it is the intention of the City Council to grant interim spending authority to allow for the continued orderly operation of the South San Francisco Conference Center for a period of ninety (90) days from July 1, 2020; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that: 1. Interim spending authority is hereby granted for a period of ninety (90) days from July 1, 2020, through September 28, 2020, to allow for the continuation of operations and projects of the Conference Center. 2. All amounts necessary for the continued operation of the Conference Center for the ninety (90) day period set forth in Paragraph 1 are hereby appropriated for expenditure. Such appropriation shall be based upon the Fiscal Year 2019-20 Operating Budget in a ratio of 365 to 90. 3. All annual contracts, leases and obligations previously entered into and agreed to by the Conference Center Authority may be renewed. The funds necessary to finance such renewals are hereby appropriated. 4. The distribution of the appropriations, transfers and reserves to the various accounts of the Conference Center in accordance with generally accepted accounting practices and consistent with the approved budget is hereby authorized. 5. The rollover of any outstanding encumbrances from Fiscal Year 2019-20 into Fiscal Year 2020-21 is hereby authorized. 6. The rollover of any unencumbered appropriations from Fiscal Year 2019- 20 into uncompleted capital improvement projects is hereby authorized. 7. The staffing level for the Conference Center contained within the 2019-20 operating budget is hereby authorized for a period of ninety (90) days. 8. Consistent with the limitations set forth herein, any and all expenditures for, and agreements relating to, the programs and materials described in the budget may be expended or entered into under authority of the Conference Center Authority, are hereby approved and authorized, and payments may be made. * * * * * * * * * * * I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a ________________ meeting held on the __________ day of ____________, 2020 by the following vote: AYES: ___________________________________________________________ ___________________________________________________________ NOES: ___________________________________________________________ ABSTAIN: ___________________________________________________________ ABSENT: ___________________________________________________________ ATTEST:________________________ City Clerk 2455457.1 SOUTH SAN FRANCISCO CONFERENCE CENTER MEMORANDUM DATE: June 8, 2020 TO: Chairperson Garbarino and Conference Center Authority Members FROM: Steve Mattas, General Counsel RE: Amendment to Conference Center Executive Director Employment Agreement At its May 18, 2020 meeting, the South San Francisco Conference Center Authority (“Authority”) conducted a performance review of Executive Director, Dean Grubl, and directed my office to prepare an amendment to Mr. Grubl’s employment contract to extend its terms by one year to June 19, 2022. In addition, given the economic uncertainty and decline in Authority revenue caused by the ongoing COVID-19 pandemic, the Authority directed that amended employment agreement would maintain Mr. Grubl’s annual compensation at its current level ($174,222.30) for the remainder of the contract period, unless it subsequently approves an increase in compensation for other employees, in which case the Authority may increase Grubl’s compensation. A copy of the contract amendment and a resolution approving the contract amendment are attached for the Authority’s consideration and action. 1. Sixth Amendment to Employment Agreement of Dean Grubl 3528029.1 SIXTH AMENDMENT TO EMPLOYMENT AGREEMENT THE SIXTH AMENDMENT made and entered into in South San Francisco, California, this eighth day of June, 2020, by and between the South San Francisco Conference Center Authority, hereinafter referred to as the “AUTHORITY” and DEAN GRUBL, hereinafter referred to as “GRUBL”. RECITALS: WHEREAS, AUTHORITY and GRUBL (collectively “Parties”) are parties to an employment agreement originally dated June 17, 2013 (“AGREEMENT”); and WHEREAS, on December 15, 2014, the PARTIES agreed to amend the AGREEMENT to extend GRUBL’s services through June 19, 2016, and increased GRUBL’s compensation to $143,325; and WHEREAS, on April 11, 2016, the PARTIES agreed to amend the AGREEMENT to extend GRUBL’s services through June 19, 2018, and increased GRUBL’s compensation to $150,500; and WHEREAS, on October 16, 2017, the PARTIES agreed to amend the AGREEMENT to increase GRUBL’s compensation by five percent (5%), from $150,500 to $158,025, effective September 1, 2017; and WHEREAS, on June 4, 2018, the PARTIES agreed to amend the AGREEMENT to extend GRUBL’s services through June 19, 2019, and increased GRUBL’s compensation by five percent (5%), from $158,025 to $165,926, effective July 1, 2018; and WHEREAS, on August 20, 2018, the PARTIES agreed to amend the AGREEMENT to extend GRUBL’s services through June 19, 2021, and to increase GRUBL’s compensation by five percent (5%) during extension year 1, from $165,926 to $174,222, effective July 1, 2019, and for extension year two in an amount to be determined by the AUTHORITY during the second year annual performance review, which would also include the AUTHORITY’s review and consideration of a compensation salary survey; and WHEREAS, the PARTIES desire to further amend the AGREEMENT to extend GRUBL’s services through June 19, 2022, and to maintain GRUBL’s annual compensation at $174,222, unless the AUTHORITY approves an increase in compensation for all other employees, in which case the AUTHORITY may consider an increase GRUBL’s compensation. NOW, THEREFORE, in consideration of this SIXTH AMENDMENT, the mutual promises, covenants, and stipulations herein contained, the PARTIES hereto agree to amend the AGREEMENT as follows: AMENDMENT 1. Section 2 of the AGREEMENT is amended to read as follows, with additions in italics and deletions in strikethrough: Section 2. TERM TERMINATION AND SEVERANCE PAY: A. The term of this Agreement shall be from June 20, 2018 through June 19, 2021 June 19, 2022. GRUBL agrees to remain in the exclusive employ of the AUTHORITY until the termination date set forth herein, and neither to accept other employment, nor to become employed by any other employer until said termination date. B. To provide an incentive to GRUBL to remain steadily in the employ of the AUTHORITY, the AUTHORITY agrees that its BOARD OF DIRECTORS (“BOARD”) will review the Agreement at the end of the three four-year term for the purpose of determining its extension thereafter. Any such extension shall be subject to a prior completion of a satisfactory performance evaluation as set forth in Section 6 of this Agreement and continued satisfactory performance as determined by the Authority, be memorialized in writing as an amendment to this Agreement, and must be approved by the BOARD and GRUBL. The terms and conditions contained herein shall apply during any such extension, except as modified in a contract amendment. 2. Section 3 of the AGREEMENT is amended to read as follows, with additions in italics and deletions in strikethrough: Section 3. SALARY: A. (1) AUTHORITY agrees to pay GRUBL for his services rendered pursuant hereto, an annual salary of One Hundred Sixty-Five Thousand Nine Hundred Twenty-Six dollars and Twenty-Five cents ($165, 926.25), effective July 1, 2018, which shall subsequently be increased to One Hundred Seventy-Four Thousand Two Hundred and Twenty-Two dollars and Thirty cents ($174,222.30), effective July 1, 2019, subject to prior completion of satisfactory annual performance evaluation as provided in Section 6 of this Agreement and continued satisfactory performance as determined by the Authority and payable each year in installments at the same time other employees of the AUTHORITY are paid. Any salary increase thereafter will be determined by the Authority during the annual performance review for the second year of the three-year term provided in Section 2 of this Agreement, during which the Authority would also review and consider a compensation salary survey. If the AUTHORITY approves an increase in annual compensation for all other AUTHORITY employees later in Fiscal Year 20-21, it may consider an increase in GRUBL’s annual compensation. All other terms of the Employment Agreement, as previously amended, shall remain in full force and effect. [SIGNATURE PAGE FOLLOWS] IN WITNESS WHEREOF, the South San Francisco Conference Center Authority has caused this Agreement to be signed and executed on its behalf by its Chairperson and GRUBL has signed and executed this Agreement. SOUTH SAN FRANCISCO CONFERENCE CENTER AUTHORITY By: ______________________________ Richard Garbarino, Chairperson By: ______________________________ Dean Grubl, Executive Director APPROVED AS TO FORM: By: ______________________________ Steve Mattas, General Counsel 3527014.1 3531820.1 RESOLUTION NO. _______ A RESOLUTION OF THE SOUTH SAN FRANCISCO CONFERENCE CENTER AUTHORITY TO APPROVE SIXTH AMENDMENT TO THE EMPLOYMENT AGREEMENT WITH DEAN GRUBL WHEREAS, the South San Francisco Conference Center Authority and Dean Grubl desire to amend the Employment Agreement pursuant to which Mr. Grubl serves as the Conference Center Authority Executive Director. NOW, THEREFORE, BE IT RESOLVED as follows: Section 1. The Authority hereby approves the Sixth Amendment to the Employment Agreement with Dean Grubl, attached hereto as Exhibit A. Section 2. The Chairperson of the Authority is hereby authorized and directed to execute the Sixth Amendment to the Employment Agreement for the Executive Director. PASSED AND ADOPTED this 8th day of June 2020 by the following vote: AYES: NOES: ABSTENTION: ABSENT: 3531820.1 Exhibit A