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Minutes
FACILITY COMMITTEE MEETING
TUESDAY, September 28, 2004
12:00 P.M.
1800 Oakdale Avenue, Conference Room B
San Francisco, CA 94124
I. Call to Order:
Acting Committee Chair, Commissioner Willie Kennedy called the Tuesday, September 28, 2004 Facility Committee meeting to order at 12:12 p.m.
II. Roll Call:
Present: Commissioner Willie Kennedy
Commissioner Bobbrie Brown
Commissioner Millard Larkin (Alternate)
Staff Present: Toye Moses, Exec. Dir., SECFC;
Gary Dowd, Dir. PUC/BCLM;
Joseph K. Tham, Real Property Officer PUC/BCLM
Annette Price, SECF-Sect.
III. Announcement: Chair Willie Kennedy read The Sunshine Ordinance.
IV. Decorative Plant Services Lease Update (Discussion & Recommendation):
Dir. Moses reported that at the last Facility meeting of 8/30/04, staff was directed to work closely with Joe Tham to incorporate changes to the Decorative Plant lease which was up for renewal. He added that a new issue has been raised and requested Comm. Kennedy address that issue.
Comm. Kennedy stated she had been recently informed of project money available for use by SECFacility from two past projects and requested that Mr. Dowd address the issue of the remaining funds and location.
Mr. Dowd reported that he has verbally been informed the funds no longer exist per PUC Finance. However, he stated he would pursue the issue and get a formal response from Finance. Regarding the rent credit issue, Mr. Dowd stated he along with Mr. Tham has been working with the lessee to bring the facility up to a place needed through rent credit.
Comm. Kennedy stated until it is determined that those funds are nonexistent, she is unprepared to go along with the rent credit issue.
President Larkin interjected another step needs to take place to prevent this from happening in future: Prior to any funds being expended and/or transferred from the Clean Water Budget to be spent on something other than the facility, it must first come before the Commission.
Comm. Brown questioned who would have the authority to transfer and/or expend funds without giving proper notice or provide an itemization of what the funds were being used for? Dir. Moses stated it is his belief that this took place prior to the Facility’s merge with PUC.
Comm. Kennedy asked for a consensus from committee members to table this item until a response from PUC Finance has been received.
Action taken: Agenda Item IV was tabled until response is received from PUC Finance Department explaining whether funds exist and fund whereabouts.
Dir. Moses also reminded members that staff was directed to contact PUC regarding expenses and requested that Mr. Dowd address that issue.
Mr. Dowd, referring to the Income/Expense Chart, briefly reviewed the rental income of all tenants/subtenants and total expenses for SECF noting the $500,000 variance.
Discussion ensued regarding annual rent revenue of tenants/subtenants and whether revenue received was market rate or below. Mr. Dowd reminded that the facility has four lease agreements with tenants. Of the four tenants, three are being charged below-market rate and would be the ones to consider when reevaluating lease contracts to determine whether there is room for increase.
Comm. Larkin commented what this facility receives vs. what other facilities receive as rental income is not comparable. And although the facility desires to have those tenants at Southeast, the financial burden of maintenance/upkeep of the building needs to be shared by all.
Mr. Tham stated Real Estate is now in the process of negotiating a new lease with CCSF, which would be $202,000 per year for the next 5 years with annual CPI adjustment and a 3-year option. He suggested now might be a good opportunity for a market analysis study.
Comm. Larkin stated he for one through the Chair would certainly like to see some kind of comparison just to have an idea. Comm. Kennedy asked for a consensus of committee members.
Action taken: The Committee directed SFPUC Real Estate to conduct a fair market analysis of what rental costs would be for facility space.
V. CCSF College/Southeast Campus & Unified School District/Subtenant Issues (Discussion & Recommendation) Dir. Moses reported that the S.F. Unified School District is a subtenant of CCSF and that there are security issues that need to be addressed.
Comm. Larkin inquired what steps have been taken to correct the problem. Dir. Moses stated this has been brought to the attention of the Commission, campus police, and the Dean.
Comm. Larkin stated he in the past has suggested to Dean Hunnicutt that the students should be monitored when en route to class.
Comm. Brown suggested a clause be incorporated in the lease of CCSF that if implementation of a safety program is not initiated within 45 to 60 days, the Commission will hire security at CCSF’s expense, which cannot be cancelled until other means of security are put in place.
Mr. Dowd stated that language could certainly be incorporated in the contract; however, he requested that he discuss this issue with the city attorney and get back to them.
Comm. Larkin suggested that the Vice Chancellor, Dean, principal, and commissioners sit down and discuss the issue of security/damage. Dir. Moses suggested the Real Estate Dept. be present as well since they authored the lease.
Mr. Dowd suggested that there be a monthly or quarterly breakout of repair/damage that has taken place at the facility accountable to CCSF, which he would then charge CCSF and be reimbursed for those damages.
Dir. Moses stated he’d be happy to compile a list. He added that he does have a good relationship with CCSF on many other issues and he’s hoping CCSF will step up to address this problem.
Comm. Kennedy stated she was partial to the idea of sitting down with the Dean to review the lease and the Commission’s expectations. She stated the Committee does not wish to see the program stopped; however there needs to be a bit more oversight on the Dean’s part.
Comm. Brown suggested that once the list is prepared, the vice chancellor should be copied and the Board. Comm. Larkin suggested there should be direct interaction between the Committee and the chancellor.
Comm. Kennedy asked for a consensus that a meeting be scheduled with City College faculty to discuss security issues and damage caused by students and CCSF’s obligation to repair damage. Also, that a list be compiled of all damage caused by students.
Action taken: The Committee directed staff to compile a list of damage and schedule a meeting with CCSF staff to discuss security issues at the Facility.
VI. Public Comments:
Mr. Caruso made comment regarding the budget/expenses vs. the income and asked is there value being received for the services that are part of the expenses?
VII. Adjournment
Commissioner Kennedy adjourned the Facility Committee meeting at 1:02 p.m.
Respectfully submitted,
________________________
Commission Secretary
