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HomeMy WebLinkAbout06.05.2025 Agenda Packet 255 South Airport Boulevard | South San Francisco | California | 94080 t: 650-877-8787 ssfconf.com SOUTH SAN FRANCISCO CONFERENCE CENTER REGULAR AUTHORITY MEETING Monday, June 2, 2025 – 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 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 April 21, 2025 Regular Meeting. Discussion Item/s: 1. Review of March & April 2025 Preliminary Financial Statements. Authority Announcements, Referrals and Future Agenda Items: Executive Director’s Report: 1. Sales Activity Report (Kathy Kearney, Director of Sales) 2. Operations Activity Report (Cameron Fujii, Director of Operations) 3. Executive Director’s Updates (Jim McGuire, Executive Director) Next Regular Authority Board Meeting will be on Monday, August 18, 2025, 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 April 21, 2025 Meeting was called to order at 5:17 p.m. by Authority Chairperson Narottam Authority Members Present: Eddie Flores, Richard Garbarino, Shila Narottam, BJ Patel, Pravin Punjiya, Iyad Shihadeh, Reena Maharaj Non-Voting Authority Members Present: Mary Prem Authority Members Absent: Francois Camou, Buenaflor Nicolas Staff Present: Ali Wolf, Katie Leung, Cameron Fujii, and Jim McGuire Public Comment: There was no public comment. Closed Session: Conference with Labor Negotiator (Pursuant to Government Code Section 54957.6) Agency Designated Representatives: Chairperson Shila Narottam and General Counsel Ali Wolf Unrepresented Employee: Executive Director Jim McGuire Closed Session Report Closed Session began at 5:19 p.m. and ended at 5:36 p.m. Action Items: 255 South Airport Boulevard | South San Francisco | California | 94080 t: 650-877-8787 ssfconf.com 1. Review/Approval of Minutes from February 18, 2025, Regular Meeting. Authority Member Garbarino moved to approve the minutes and Authority Member Maharaj seconded the motion. By roll call, the Authority voted unanimously to approve the Minutes from February 18, 2025 Regular Meeting. 2. Review/Approval of License Agreements with PG&E for Use of Parking Areas a. Review/Approval of PG&E License Agreement for Parking Area at 255 South Airport Blvd b. Review/Approval of PG&E License Agreement for Parking Area at 245 South Airport Blvd Executive Director McGuire reviewed the history of the negotiations with PG&E for the License Agreement For Parking Use. The Conference Center had been paying $11,013 per month for both parking areas at 245 and 255 South Airport Boulevard since October 5th, 2022, with no fee increases. The monthly license fee for the parking area in front of the Conference Center was $4,400. The monthly license fee for the parking area in front of the Park Pointe Hotel was $6,613. The current license agreement was due to expire in September 2024. In August 2024, PG&E Land Agent Lam Vu contacted McGuire and Vu proposed a four hundred percent (400%) increase to bring the monthly fees up to market value. PG&E’s drastic increase in its license fee would have taken the Conference Center’s license payments from $52,800 per year ($1.06/sq. ft.) to $208,320 per year (which equates to $4.20/sq. ft or $17,360 per month) and the increase for the parking lot in front of the Park Pointe Hotel would have gone from $79,356 per year to $252,500 per year (which equates to $21,041/month). McGuire hired Colliers Valuation and Advisory Services Land Appraisers to get a professional comparison. The findings of this comparison were close to what PG&E was proposing, in terms of $4.00/sq. ft. After several rounds of negotiations, PG&E finally agreed to a 25% increase per year through the year 2029. By the year 2029, the Conference Center’s annual fee will be $165,000, which is closer to “market value”, but still not a four hundred percent (400%) increase. The increase will be a “step process”, with a 25% increase each year through the year 2029. PG&E sought to have executed license agreements as soon as possible, therefore McGuire worked with Ali Wolf, General Counsel for the Conference Center, to have these agreements reviewed prior to executing them. Although these license agreements have been signed, McGuire brought both agreements to the Authority Board for consideration and approval. Both license agreements can be terminated if desired by the Authority, but McGuire does not anticipate being able to obtain a better rate than has been negotiated. After a brief discussion, the Authority requested that McGuire and General Counsel work on an agreement to propose to the Park Pointe Hotel for PG&E License Agreement payments. 255 South Airport Boulevard | South San Francisco | California | 94080 t: 650-877-8787 ssfconf.com Authority Member Garbarino moved to approve the PG&E License Agreement for Parking Area at 255 South Airport Boulevard. (Action Item 2.a.) and Authority Member Maharaj seconded the motion. The following Authority members voted Yes, to approve the PG&E License Agreement for Parking Area at 255 South Airport Boulevard: Authority Members Flores, Garbarino, Maharaj, Punjiya, Shihadeh, and Narottam. Authority Member Patel voted No. Authority Member Garbarino moved to approve the Review/Approval of PG&E License Agreement for Parking Area at 245 South Airport Boulevard (Action Item 2.b.) and Authority Member Maharaj seconded the motion. The following Authority members voted Yes, to approve PG&E License Agreement for Parking Area at 245 South Airport Boulevard: Authority Members Flores, Garbarino, Maharaj, Punjiya, Shihadeh, and Narottam. Authority Member Patel voted No. 3. Review/Approval of the proposed Fiscal Year 2025-2026 South San Francisco Conference Center Budget for submission to the City Council for Approval. Executive Director McGuire reviewed the proposed FY 2025-2026 budget to the Authority. The budget includes a total revenue projection of $5,558,813 and a total expenditure request of $3,544,693 with projected gross operating surplus of $377,282. McGuire reminded the Authority that the FY 2024-2025 budget will end up better than expected by approximately $341,000, and this is the third consecutive year that the Conference Center’s top line revenues will exceed the expenditures. McGuire explained that the Net Income will be a positive $125,815. Also, included in the FY 2025-2026 budget was a capital improvement budget of $423,000. The Conference Center Tax was projected based on an assumed 67% occupancy for the coming fiscal year. The projected Unrestricted Fund Balance at the end of June 2025 will be approximately $4,396,387. Director of Operations, Cameron Fujii presented the Capital Improvement Budget that includes the following eleven (11) projects: New Meat Slicer, Water Fountain Station Replacement, Replace Ten (10) Broken Executive Chairs, Air Wall Refurbishment Hardware, Six Foot (6’) Tables (20 Units), Purchase New Table Skirts (106 Units), Dishwasher Replacement, Upgrade Front Office Area, HVAC Unit for the Oyster Point Room, Lobby Sunshades, and an additional project of a handicapped accessible ramp near the front of the Conference Center. Authority Member Patel moved to approve the Fiscal Year 2025-2026 South San Francisco Conference Center Budget as presented and Authority Member Shihadeh seconded the motion. The Authority, by roll call voted unanimously to approve the Fiscal Year 2025-2026 South San Francisco Conference Center Budget. 255 South Airport Boulevard | South San Francisco | California | 94080 t: 650-877-8787 ssfconf.com 4. Review/Approval of Fiscal Year 2025–2026 Interim Funding for Ninety (90) days. A resolution authorizing the South San Francisco Conference Center Authority’s Fiscal Year 2025-2026 Interim Funding has been filed with the City of South San Francisco City Clerk’s office. Executive Director McGuire will request City Council approval of the resolution at the June 25 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 2025-2026 Budget. Authority Member Patel moved to approve the Fiscal Year 2025-2026 South San Francisco Conference Center Budget Ninety (90) Day Interim Funding Request as presented and Authority Member Shihadeh seconded the motion. The Authority, by roll call voted unanimously to approve the Fiscal Year 2025-2026 South San Francisco Conference Center Budget Ninety (90) Day Interim Funding Request. Discussion Item/s 1. Review January and February 2025 Preliminary Financial Statements. Chief Financial Officer, Katie Leung, reviewed the January and February 2025 Preliminary Financial Statements for the Authority. YTD Gross Revenue was over budget by $11,196. The YTD Total Operating Expenditures are $142,248 below what was budgeted. Administrative & General expenses were under budget by $64,551, Operation & Maintenance expenses were under budget by $44,377 and Sales & Marketing expenses were under budget by $33,319. YTD Net Income, Net Depreciation Expenses is $485,277 and Net Income is $295,953 over budget. Authority Announcements, Referrals and Future Agenda Items: None Executive Director’s Report: Operations Activity Report (Cameron Fujii, Director of Operations) Director of Operations Cameron Fujii updated the Authority on capital projects that have been recently completed including the ice block replacement. Fujii reported that the carpet for the Lobby will be done in June. McGuire asked the Authority for their vote on which carpet sample they preferred, and the overwhelming majority chose the carpet called “Plum Alley.” Executive Director’s Updates including Sales and Marketing (Jim McGuire, Executive Director) Executive Director McGuire updated the Authority on recent sales activities including the Sacramento Client Lunch which Director of Sales Kathleen Kearney and Sales Manager Stacey San Pedro hosted for 255 South Airport Boulevard | South San Francisco | California | 94080 t: 650-877-8787 ssfconf.com eight (8) qualified meeting planners. McGuire reported that San Pedro attended the Global Meeting Industry Day (GMID) for the National Chapter of Meeting Planners International. Kearney and San Pedro hosted a familiarization (FAM) trip with the San Francisco Peninsula for Sacramento Meeting Planners which included Specialist Association Management Company, WestEd, and Hotel Lodging Association. McGuire reported that San Pedro also attended the conference “Elevate”, which is an educational and social networking annual conference for planners from California & Oregon. San Pedro also entertained the Conference Center’s clients from the Management Leadership For Tomorrow at the Cloud Club. This client has spent over $500,000 with the Conference Center over the last two (2) years. Fujii, Leung, Kearney, and McGuire attended the annual luncheon for The San Francisco Peninsula, which was held at the Marriott Bayfront Hotel and featured speaker was Caroline Beteta, President and CEO for Visit California. Additionally, Kearney, San Pedro, and McGuire made personal spring sales calls to local clients, hotel partners, and the City of South San Francisco Departments. Executive Director McGuire updated the Authority on budget percentages for the Fiscal Year 2024-2025 as follows: Room Rental is 102% of budget, Event Services is 92% of budget, Audio-Visual is 59% of budget, and Food and Beverage is 86% of budget. McGuire shared recent Social Media campaign updates which is called “Did You Know” – which recent posts included “The South San Francisco Conference Center used to be the site of Berkey Photo Lab”, “Our back entrance is dedicated to Joseph A. Fernekes”, and “Our Lobby ceiling was intentionally constructed to look like the bottom of a ship”. McGuire reported that the campaign is getting a lot of “likes” on Facebook, LinkedIn and Instagram. McGuire reported that the Conference Center’s nonprofit package has proven to be successful, and the Conference Center is hosting UCLA; a group for 600 college-bound students who have received their acceptance letter from UCLA, and the college is here to connect with the school in hopes to gain these students. McGuire shared with the Authority that he has been asked to serve on The SF Peninsula’s Board Advisory Council. It is a Board of business leaders, public officials, and city representatives, and the goal is to provide the San Francisco Peninsula’s Board of Directors with feedback on how to better market this destination to visitors. A short list of this Board will include Jackie Speier, Mike Callagy, Roseann Foust, Martin Yan (Celebrity Chef), and Executive Directors from Cow Palace and the SMC Event Center to name a few. McGuire informed the Authority that he will be participating in the BIO INTERNATIONAL CONVENTION in Boston in June, along with Mayor Flores, Vice-Mayor Addiego, Councilmembers Nicolas and Coleman, and 255 South Airport Boulevard | South San Francisco | California | 94080 t: 650-877-8787 ssfconf.com other City representatives to promote the City of SSF to over twenty thousand (20,000) leaders in the biotechnology industry from over seventy (70) countries, as well as promote the South San Francisco Conference Center. The conference takes place from June 15 – 18, 2025. McGuire reported that the Conference Center’s reserve account continues to grow and a deposit of $100,000 was made in March, bringing the balance to $4.5 million dollars. In conclusion, McGuire wished a Happy 2nd Quarter Birthday to Authority Member Maharaj. Chairperson Narottam announced that the next Regular Authority Meeting is scheduled for Monday, June 2, 2025. The meeting was adjourned at 6:36 p.m. _____________________ ___________________ Shila Narottam Jim McGuire Authority Chairperson Executive Director Actual Budget over Budget % of Budget Actual Budget over Budget % of Budget Actual Budget over Budget % of Budget Income 41100 Room Rental Income 59,200.00 80,000.00 (20,800.00) 74% 116,550.00 85,000.00 31,550.00 137% 844,170.00 812,000.00 32,170.00 104% 41200 Event Services Income 12,197.00 18,080.00 (5,883.00) 67% 11,657.58 19,460.00 (7,802.42) 60% 195,076.46 204,712.00 (9,635.54) 95% 41300 Audio Visual Income 40,817.63 36,215.70 4,601.93 113% 34,196.50 47,079.00 (12,882.50) 73% 332,706.16 416,195.73 (83,489.57) 80% 41400 Food & Beverage Income 98,563.59 96,000.00 2,563.59 103% 114,230.15 108,800.00 5,430.15 105% 1,424,212.92 1,478,400.00 (54,187.08) 96% Total Income $ 210,778.22 $ 230,295.70 $ (19,517.48) 92% $ 276,634.23 $ 260,339.00 $ 16,295.23 106% $ 2,796,165.54 $ 2,911,307.73 $ (115,142.19) 96% Cost of Goods Sold 42200 COGS Event Services 1,751.80 8,584.00 (6,832.20) 20% 3,892.16 9,183.00 (5,290.84) 42% 60,639.48 94,052.60 (33,413.12) 64% 42300 COGS Audio Visual 30,388.69 24,557.73 5,830.96 124% 25,723.65 33,167.10 (7,443.45) 78% 250,528.60 300,947.46 (50,418.86) 83% 42400 COGS Food & Beverage 76,271.22 69,336.00 6,935.22 110% 90,398.99 78,581.00 11,817.99 115% 1,033,574.29 1,067,773.00 (34,198.71) 97% Total Cost of Goods Sold $ 108,411.71 $ 102,477.73 $ 5,933.98 106% $ 120,014.80 $ 120,931.10 $ (916.30) 99% $ 1,344,742.37 $ 1,462,773.06 $ (118,030.69) 92% Gross Profit $ 102,366.51 $ 127,817.97 $ (25,451.46) 80% $ 156,619.43 $ 139,407.90 $ 17,211.53 112% $ 1,451,423.17 $ 1,448,534.67 $ 2,888.50 100% 60000 Operating Expenses 65000 Administrative & General Expenses 65100 Salary & Benefit 122,894.74 129,004.00 (6,109.26) 95% 122,167.83 129,004.00 (6,836.17) 95% 1,247,987.48 1,299,903.00 (51,915.52) 96% 65200 General Insurance 3,388.24 3,450.00 (61.76) 98% 3,388.24 3,450.00 (61.76) 98% 33,882.40 34,500.00 (617.60) 98% 65300 Bank Charges 7,463.38 6,295.00 1,168.38 119% 7,820.45 7,112.00 708.45 110% 63,589.71 79,494.00 (15,904.29) 80% 65400 Property/ Taxes/ Lease 40,500.00 39,400.00 1,100.00 103% 40,500.00 39,400.00 1,100.00 103% 445,229.93 443,000.00 2,229.93 101% 65600 Office Expenses 762.62 890.00 (127.38) 86% 1,059.19 1,640.00 (580.81) 65% 8,003.46 12,450.00 (4,446.54) 64% 65670 Donation - - - 0% - - - 0% 824.31 2,500.00 (1,675.69) 33% 65810 Travel Expense - Admin 53.00 50.00 3.00 106% 3.00 50.00 (47.00) 6% 402.53 500.00 (97.47) 81% 65820 Employee Relation - Admin 153.12 200.00 (46.88) 77% 504.60 200.00 304.60 252% 3,812.62 5,470.00 (1,657.38) 70% 65910 Public Relations 596.91 1,450.00 (853.09) 41% 1,567.95 1,700.00 (132.05) 92% 18,711.44 19,650.00 (938.56) 95% Total 65000 Administrative & General Expenses $ 175,812.01 $ 180,739.00 $ (4,926.99) 97% $ 177,011.26 $ 182,556.00 $ (5,544.74) 97% $ 1,822,443.88 $ 1,897,467.00 $ (75,023.12) 96% 66000 Operation & Maintenance Expenses 66100 Contract Labor & Service 18,899.43 25,826.00 (6,926.57) 73% 22,704.36 25,398.00 (2,693.64) 89% 222,440.43 257,384.00 (34,943.57) 86% 66220 HVAC - 1,800.00 (1,800.00) 0% 3,856.54 5,850.00 (1,993.46) 66% 12,254.68 24,000.00 (11,745.32) 51% 66230 Kitchen 1,600.00 4,400.00 (2,800.00) 36% 1,200.00 1,800.00 (600.00) 67% 10,416.83 17,600.00 (7,183.17) 59% 66300 Maintenance Services & Equipments 3,713.85 700.00 3,013.85 531% 3,566.58 7,825.00 (4,258.42) 46% 39,559.82 39,500.00 59.82 100% 66400 IT & Communications 15,394.54 14,902.00 492.54 103% 13,992.60 15,752.00 (1,759.40) 89% 148,243.27 153,120.00 (4,876.73) 97% 66500 Utilities 11,411.56 17,490.00 (6,078.44) 65% 12,285.64 16,804.00 (4,518.36) 73% 137,587.92 155,752.00 (18,164.08) 88% 66700 Client Services Expenses 1,945.64 1,955.00 (9.36) 100% 2,697.30 1,517.00 1,180.30 178% 20,595.37 17,325.00 3,270.37 119% 66810 Travel Expense - OPS 1,524.58 50.00 1,474.58 3049% 164.79 50.00 114.79 330% 2,246.56 500.00 1,746.56 449% 66820 Employee Relations - OPS 352.72 - 352.72 0% 1,127.81 750.00 377.81 150% 4,395.68 3,000.00 1,395.68 147% Total 66000 Operation & Maintenance Expenses $ 54,842.32 $ 67,123.00 $ (12,280.68) 82% $ 61,595.62 $ 75,746.00 $ (14,150.38) 81% $ 597,740.56 $ 668,181.00 $ (70,440.44) 89% 67000 Sales & Marketing Expenses 67110 Marketing 15,203.43 9,967.00 5,236.43 153% 10,612.25 16,413.00 (5,800.75) 65% 117,760.81 134,496.00 (16,735.19) 88% 67310 Client Entertainment 3,098.84 600.00 2,498.84 516% 3,294.22 8,600.00 (5,305.78) 38% 20,267.40 36,200.00 (15,932.60) 56% 67320 Client Gifts 4,318.09 4,000.00 318.09 108% 103.18 300.00 (196.82) 34% 9,386.43 4,900.00 4,486.43 192% 67410 Tradeshows 67.48 - 67.48 0% 1,195.00 1,650.00 (455.00) 72% 14,207.09 14,500.00 (292.91) 98% 67510 Industry Event Registration - 300.00 (300.00) 0% 889.00 1,100.00 (211.00) 81% 1,456.45 4,800.00 (3,343.55) 30% 67610 Dues & Membership - - - 0% 575.00 630.00 (55.00) 91% 8,752.94 4,054.00 4,698.94 216% 67620 Group Rental Incentive 2,490.00 2,000.00 490.00 125% 287.73 - 287.73 0% 2,777.73 4,000.00 (1,222.27) 69% 67810 Travel Expense - Sales 711.27 900.00 (188.73) 79% 1,984.60 2,100.00 (115.40) 95% 13,830.59 21,300.00 (7,469.41) 65% 67820 Employee Relations - Sales 309.06 - 309.06 0% 595.61 300.00 295.61 199% 2,699.00 2,900.00 (201.00) 93% 67912 Community - Sales - 1,540.00 (1,540.00) 0% 469.28 200.00 269.28 235% 6,016.30 7,720.00 (1,703.70) 78% Total 67000 Sales & Marketing Expenses $ 26,198.17 $ 19,307.00 $ 6,891.17 136% $ 20,005.87 $ 31,293.00 $ (11,287.13) 64% $ 197,154.74 $ 234,870.00 $ (37,715.26) 84% Total Expenses $ 256,852.50 $ 267,169.00 $ (10,316.50) 96% $ 258,612.75 $ 289,595.00 $ (30,982.25) 89% $ 2,617,339.18 $ 2,800,518.00 $ (183,178.82) 93% Net Operating Income $ (154,485.99) $ (139,351.03) $ (15,134.96) 111% $ (101,993.32) $ (150,187.10) $ 48,193.78 68% $ (1,165,916.01) $ (1,351,983.33) $ 186,067.32 86% Other Income 81110 Conference Center Tax 157,308.00 176,123.40 (18,815.40) 89% 150,000.00 170,442.00 (20,442.00) 88% 1,623,537.62 1,648,441.50 (24,903.88) 98% 81122 Interest from LAIF 48,602.08 25,000.00 23,602.08 194% - - - 0% 147,335.43 75,000.00 72,335.43 196% 81130 Credit Card Discount & Rebate 525.19 550.00 (24.81) 95% 908.11 550.00 358.11 165% 7,349.74 5,500.00 1,849.74 134% 81135 Other Income - MG - - - 0% - - - 0% 14,892.96 - 14,892.96 0% Total Other Income $ 206,435.27 $ 201,673.40 $ 4,761.87 102% $ 150,908.11 $ 170,992.00 $ (20,083.89) 88% $ 1,793,115.75 $ 1,728,941.50 $ 64,174.25 104% Other Expenses 68100 Professional Services 2,840.53 3,034.00 (193.47) 94% 5,084.34 4,284.00 800.34 119% 49,419.06 52,940.00 (3,520.94) 93% 86000 Depreciation Expenses 20,914.11 27,955.00 (7,040.89) 75% 20,914.11 28,788.00 (7,873.89) 73% 196,869.14 270,669.00 (73,799.86) 73% Total Other Expenses $ 23,754.64 $ 30,989.00 $ (7,234.36) 77% $ 25,998.45 $ 33,072.00 $ (7,073.55) 79% $ 246,288.20 $ 323,609.00 $ (77,320.80) 76% Net Other Income $ 182,680.63 $ 170,684.40 $ 11,996.23 107% $ 124,909.66 $ 137,920.00 $ (13,010.34) 91% $ 1,546,827.55 $ 1,405,332.50 $ 141,495.05 110% Net Income $ 28,194.64 $ 31,333.37 $ (3,138.73) 90% $ 22,916.34 $ (12,267.10) $ 35,183.44 -187% $ 380,911.54 $ 53,349.17 $ 327,562.37 714% Net Income Net Depreciation $ 49,108.75 $ 43,830.45 $ 577,780.68 South San Francisco Conference Center Budget vs. Actuals: FY24-25 March - April Preliminary March 2025 - April 2025 Mar 2025 Apr 2025 Total