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HomeMy WebLinkAboutMinutues 2024-06-03SOUTH SAN FRANCISCO <io CONFERENCE CENTER 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 June 3, 2024 Meeting was called to order at 5:15 p.m. by Authority Vice -Chairperson Narottam "j'4007, Authority Members Present: Francois Camou, chard Garbari o Shila Narottam, Buenaflor Nicolas, BJ Patel, _ ary, rem,Pravin Punjiya, lyad Shihadeh, Reena Maharaj Authority Members Absent: James Coleman, Mary Prem Staff Present: Ali Wolf, Katie Leung, Cameron Fujii, Kathleen Kearney, and Jim McGuire LAu Comment: There was no public comment. Action Items: 1. Consider and approve remote board member's attendance under just cause in accordance with AB 2449. Chairperson Shihadeh attended via Teleconference under just cause for a medical illness. Authority Member Garbarino moved to approve Chairperson Shihadeh's attendance via teleconference, and Authority Member Camou seconded the motion. The Authority, by roll call, voted unanimously. 2. Review and Approve Minutes from the April 15, 2024, Regular Meeting. Authority Member Maharaj moved to approve the minutes and Authority Member Patel seconded the motion. The Authority, by roll call, voted unanimously. 255 South Airport Boulevard I South San Francisco I California 1 94080 t: 650-877-8787 ssfconf.com EEO GOLD SOUTH SAN FRANCISCO CONFERENCE CENTER 3. Review and approve the proposed Fiscal Year 2024-2025 South San Francisco Conference Center Budget for submission to the City Council for Approval. Executive Director McGuire reviewed the proposed FY 2024-2025 budget to the Authority. The budget includes a total revenue projection of $5,524,195 and a total expenditure request of $3,400,252 with projected gross operating surplus of $416,896. McGuire reminded the Authority that the FY 2023-2024 budget will end up better than expected by approximately $100,000, and this is the second consecutive year that the Conference Center's top line revenues will exceed the expenditures. McGuire explained that although the Conference Center is still in the recovery phase from the pandemic, the FY 2024-2025 budget's Net Income will be a positive $87,819. Also, included in the FY 2024-2025 budget was a capital improvement budget of $340,600. The Conference Center Tax was projected based on an assumed 66% occupancy for the coming fiscal year. The projected Unrestricted Fund Balance at the end of June 2024 will be approximately $4,017,654. Director of Operations, Cameron Fujii presented the Capital Improvement Budget that includes the following seven (7) projects: Licenses for IT Equipment, Replace and Upgrade the Emergency Lighting, Replacement of three (3) Exterior Awnings, Replacement of the HVAC unit in the kitchen, Replacement of the Broken Ice Block in the Exterior Entrance Walls, Replacement of four (4) Food Warmers, and the Replacement of Carpet and Removal of Tiles in the Lobby. Authority Member Maharaj moved to approve the Fiscal Year 2024-2025 South San Francisco Conference Center Budget as presented and Authority Member Nicolas seconded the motion. The Authority, by roll call voted unanimously. 4. Review and Approve Fiscal Year 2024-2025 Interim Funding for Ninety (90) days. A resolution authorizing the South San Francisco Conference Center Authority's Fiscal Year 2024-2025 Interim Funding has been filed with the City of South San Francisco City Clerk's office. Executive Director, Jim McGuire, will request City Council approval of the resolution at the June 12 regular meeting of the City of South San Francisco's City Council if the Council does not approve the South San Francisco Conference Authority's Fiscal Year 2024-2025 Budget. A motion is not required by the South San Francisco Conference Center Authority at this time. Discussion Item/s 1. Review March and April 2024 Preliminary Financial Statements. 255 South Airport Boulevard I South San Francisco I California 1 94080 t: 650-877-8787 ssfconf.com SOUTH SAN FRANCISCO CONFERENCE CENTER Chief Financial Officer, Katie Leung, reviewed the March and April 2024 Preliminary Financial Statements for the Authority. YTD Gross Revenue was over budget by $76,989. The YTD Total Operating Expenditures are $169,474 below what was budgeted. Administrative & General expenses were under budget by $112,676, Operation & Maintenance expenses were under budget by $26,534 and Sales & Marketing expenses were under budget by $30,264. YTD Net Income, Net Depreciation Expenses are $488,987 and Net Income is $230,470 over budget. Authority Announcements, Referrals and Future Agenda Items: None Executive Director's Report: Sales Activity Report, (Kathleen Kearney, Director of Sales) Director of Sales Kearney reported that the sales department has sent out several email blasts through Unique Venues and to west coast meeting planners to promote twenty-five (25%) discount on meeting room rental for dates that are still available for this Fiscal Year. Kearney also reported that client entertainment is ongoing at The Cloud Club and reminded the Authority that the conference center received its return -on -investment last Fiscal Year for The Cloud Club. Kearney reported that Sales Manager Stacey San Pedro recently attended the California State Association of Executives (CaISAE) Elevate Conference which consists of educational and networking sessions with California and Oregon association meeting planners. Kearney presented copies of the most recent issue of The San Francisco Business Times newspaper to show the conference center's first print ad with our new artwork. The conference center's ad had prime placement in the centerfold section which allowed for maximum exposure. Kearney reported that San Pedro, Executive Director McGuire, Director of Catering, Judy Reyes, and Kearney will be performing sales calls to the conference center's local clients, hotel and civic partners this week and the sales department has also begun a telemarketing campaign to the local consulate offices. Kearney recapped the current Fiscal Year informing the Authority that the conference center hosted one hundred fifty-four (154) events, which is fewer events than last Fiscal Year, however, these events were larger, multi -day events that generated greater room rental revenue. The conference center's market mix was seventy-six percent (76%) repeat business and twenty-four percent (24%) new business. There were over thirty-one thousand (31,000) attendees, not including the attendance for trade shows, which was approximately an additional nine thousand (9,000) attendees. Kearney shared that the conference center generated over one thousand seven hundred (1,700) trackable 255 South Airport Boulevard I South San Francisco I California 1 94080 t: 650-877-8787 ssfconf.com SOUTH SAN FRANCISCO CONFERENCE CENTER hotel room nights to our hotel community which reflects an eighty-five percent 85% increase over last Fiscal Year. Kearney broke down the business mix as follows: • Corporate: 38% (which is a 4% increase from last year) • Association: 23% • Government: 10% • SMERF: (Social, Military, Educational, Religious, Fraternal): 26% • Other: 3% Kearney reported that the conference center's website produced two hundred seventy-seven (277) leads, and the sales team converted six -point four percent (6.4%) of those leads, which exceeds the travel industry conversion rate of five percent (5%). Kearney enthusiastically reported that the conference center is on track to make history in August 2024, for the largest room revenue generating month, with more than two hundred twenty-three thousand dollars ($223,000) currently on the books. Operations Activity Report (Cameron Fujii, Director of Operations) Director of Operations Fujii updated the Authority on the two (2) remaining capital projects for the current Fiscal Year. Fujii reported that the Server Upgrade will take place later this month and the Bathroom Countertops project is in progress now. Fujii also addressed the three (3) additional unexpected projects that were completed this Fiscal Year, which included the Installation of two (2) New Water Heaters, the Replacement of two (2) Food Warmers, and the Replacement of the Gutters outside of the Oyster Point Room. Executive Director's Report (Jim McGuire, Executive Director) McGuire thanked the conference center team for a successful Fiscal Year and thanked the Authority for approving the Fiscal Year 2024-2025 budget. McGuire reminded the Authority that the budget presentation to the City Council will be on Wednesday, June 12, 2024, and extended an invitation to the Authority Members to attend. Vice Chairperson Narottam announced that the next Regular Authority Meeting is scheduled for Monday, August 19, 2024. The meeting was adjourned at 6:01 p.m. �l lyad Sh Authority Chairperson Jim McGuire frK�cutive Director 255 South Airport Boulevard I South San Francisco I California 1 94080 t: 650-877-8787 ssfconf.com