Minutes - February 2022 Regular Meeting of the Japan Center Garage Corporation Regular Meeting

Regular Meeting of the Board of Directors

City of San Francisco Japan Center Garage Corporation

(A California Non-profit Public Benefit Corporation)

Thursday, February 17, 2022 – 11:00 a.m.

Zoom Meeting

MINUTES

Present: Edward Ong, Vas Kiniris, Jan Masaoka, Green Chang, Hagen Choi, Robert W. Hsu, Kimberly Kolbe, Keiko Murase, John Noguchi and Jerry Ono

Also present: Claudine Cheng, Corporate Counsel; Richard Hashimoto, Corporate Manager; Fred Bekele, IMCO; Emily Murase, Japantown Task Force, Inc.; Grace Horikiri, Japantown CBD and Greg Viloria, Website Developer

1. Call to Order

   Board President Ong called the meeting to order at 11:01 a.m.

2. Approval of December 16, 2021 minutes
   A motion to approve the minutes was made by Director Noguchi and seconded by Director Ono.  The motion was adopted unanimously.

3. Board President’s Report
   There was no item reported.

4.  Corporate Manager’s Report
   For the month of January 2022, Revenues increased $138,259 over last year but overall, the garage is still down $947,953 since the shutdown started.  |Transient Parking has increased 13,962 vehicles over last period resulting in 118% increase.  Cumulatively, however, we are still down 54,887 vehicles. |Director Choi asked whether the decrease in parking was due to spaces blocked off by ongoing flooding.  Mr. Hashimoto responded that the area was blocked off because the plumbers need time to work on the repair. 
   
   On Thursday, December 30th, the garage experienced massive flooding from an 8” high-pressure fire sprinkler pipe break which comes through a wall in the garage from the street to an interior valve where the break occurred.  The garage was immediately shutdown and the flooding made its way into our main electrical room causing a power outage to the garage and parts of the building.  The pipe is a common pipe that serves the garage, west mall and doctors offices on Geary.  Some shops in the East and West Mall including Nijiya Market were also affected by the outage.  The fire department responded but could not locate the main valve that feeds the interior valve, so they called the water department to assist.  After several attempts by the fire department and garage operator, it took nearly 2-1/2 hours for the water department to respond and locate the main valve on Post Street.  
   
   After the main valve was shut off, the garage operator immediately went into action to evacuate the standing water that was knee high in some places.  It took 5 days to remove all of the standing water with our floor maintenance machines.  Another machine was also brought in from another garage.
   
   Electricity was restored the next day to most of the garage and the malls but there was an area of the garage that was still without power which was restored on January 6th.   The cause for the delay is that new parts are no longer manufactured for the aged system but the electricians were able to locate remanufactured parts which is why it took so long to restore.
   
   Since it was the holiday season and the repair was for a fire suppression system, there weren’t many qualified plumbers available to repair the broken pipe.  The garage operator was finally able to locate a plumber and they attempted to replace the severed pipe, but the intense force of the water shifted the interior valve and made it difficult to get a leak free seal.  After numerous attempts, they were finally able to obtain a secure seal on the morning of January 7th and the garage was reopened at approx. 1:00pm

   
   Based on average from 2018 and 2019 numbers, of course 2020 doesn’t count, the garage lost approximately $141,000 from 18,100 vehicles during the 8-day closure.  The holiday season is one of the busiest times of the year for the garage and merchants.  It couldn’t have come at a worse time as we are still recovering from the pandemic.  There was also water damage to 2 vehicles parked in the vicinity of the flooding and we have informed the vehicle owners to contact their insurance company then we will provide city information to their insurer upon request for restitution.  The city attorney’s office has asked Asian Pacific Islander Legal Outreach to assist in contacting the merchants to apply for a loss of income claim with the city.  There may be grant money available for their losses.

   The pipe itself was in excellent condition.  There was no evidence of rust or visible cracks.  It just snapped from stress that may have been caused by the heavy rains in December.  Nonetheless, the MTA has requested an engineering analysis from Public Works to determine what may have caused the break because there are other high-pressure pipes that comes through the garage’s wall and the MTA will determine if those pipes should also be replaced.  It’s unfortunate that this incident happened at the time it did but it’s fortunate that no one got injured especially when the water reached our high voltage electric room and during the day when staff was present, otherwise the situation could have been much worse.
   
   Director Masaoka asked who owned the leak problem.  Mr. Hashimoto explained that it was a shared problem.  There were several ownerships including two doctors and the mall.  Liability will be apportioned among the owners and the garage does not own the pipe.
   
   Director Choi asked who will compensate the merchants for business loss.  Mr. Hashimoto responded that the merchants are instructed to process claims through their own insurance company.  Meanwhile, they can also file claims with the City Attorney’s office.
   
   Since October 2021, there has been numerous delays in transferring monthly parking revenue into our bank account and has also deferred paying some invoices that are in the corporation’s name.  We have notified IMCO on several occasions and have also notified the MTA about their constant delays.  On Feb. 8th, I sent Mr. Malone a list of items concerning the delays and the impact it may have on the parking corporation’s credit rating.  Mr. Malone will provide more information during his update.
   
   On Thursday, February 10th, I met with the new Northern Police Station Captain, Derrick Jackson informing him of the increase in car break ins.  I also informed him about an existing program from Central Police Station whereby the MTA has authorized police vehicles to park inside other city garages in deterring vehicle break-ins.  The police officers can retrieve the vehicles anytime with an access card.  The captain is on board with this idea and will find out if there are extra vehicles available for this program.  I will be meeting officers tomorrow to see where the cars should be strategically parked to be highly visible.  The MTA has preauthorized 3 access cards for 3 police vehicles (2 at the main garage and 1 at the annex garage).  I will report back.

5. Corporate Counsel’s Report
   Corporate Counsel discussed AB-361, a State legislation that provides an exception to the rule prohibiting telephonic meetings.  For commissions and boards to hold remote meetings via zoom or similar vehicles, each entity must adopt a resolution to declare that in-person meetings.  | Ms. Cheng recommended that the JCGC board adopt a resolution that would continue to allow for virtual meetings until the City has amended the local restrictions for in-person meetings.
   
   A motion was made by Director Noguchi to continue the meetings virtually.  Director Choi seconded and the motion was unanimously approved.

6. Treasurer’s Report
   In the absence of Director Chin, President Ong summarized the financial statements for October and November 2021.  October 2021 
   
   - Change in Current Assets (Checking and Savings) $263,573.09
   - Change in Total Liabilities and Equity $218,476.13
   - Transient Revenue increased $156,016
   - Monthly Parking decreased $198,756 from CPMC cancellation
   - Parking Income is at -4.03% to budget
   - Total Expenses are at 36.67% which is 13.33% below the month’s allocation 
   - Number of Transient Vehicles increased 27,638 from prior period
   - Monthly Vehicles decreased 281 from CPMC cancellation
   
   A motion to accept the October 2021 financial report was made by Director Hsu and seconded by Director Masaoka.  The motion was adopted unanimously.
   
   NOVEMBER 2021
   - Change in Current Assets (Checking and Savings) $412,074.61
   - Change in Total Current Assets $366,245.71
   - Change in Current Liabilities $94,743.44
   - Change on Total Equity $271,502.27
   - Change in Total Liabilities and Equity $366,245.71
   - Transient Revenue increased $129,264 for the month and YTD at $833,162
   - Monthly Parking decreased $61,780 from CPMC cancellation for the month
   - Gross Parking Income is at 54.14% to budget 
   - Total Other Operating Income YTD is at 53.29% to budget
   - Total Income for is at 54.18% which is negative 5.04% to budget
   - Total Expenses is 2.91% below the month’s allocation of 58.33%
   - Number of Transient Vehicles increased 23,951 from prior year 
   - Monthly Vehicles decreased 282 from the CPMC cancellation
   
   A motion to accept the November 2021 financial statement was made by Director Noguchi and seconded by Director Kiniris.  The motion was adopted unanimously.
   
   Director Masaoka asked Mr. Malone about the climate for parking and what can the garages expect.  Mr. Malone responds as follows:
   
   For the 20 city-owned garages, the MTA has been tracking parking daily.  In October, November and December of last year.  Transient parking was about 75-80% of the pre-pandemic record.  Omicron had some impact and January numbers were a bit down, about 68-70% of pre-pandemic.  No one knows whether or when the numbers will go back and there is also another scenario here.  We may presume that there will be a contingent of folks who will not return to taking public transit and so perhaps we will see more parking and less transit. In the short term, with the masks rule changes, more people maybe out and there may be an increase in parking.  In the long term, the MTA will closely monitor the need for garages.

7. SFMTA Update
   The water leak situation - SFMTA has been working with Mr. Hashimoto to address the repair and loss.

   The operator’s agreement – the thinking is to extend the agreement that will soon expire on April 30, 2022.  The approval process in the city is unclear because the agreement is actually between the Operator and JCGC and MTA is looking into a process to streamline the change.  The first step would be for the JCGC board to approve the extension.   
   
   Ms. Cheng commented that this is not a regular amendment of the contract since the extension is beyond the terms of the contract and asked Mr. Malone to elaborate on the situation for the board’s understanding.   Mr. Malone provided the following additional background information:
   
   The MTA owns the garage and under the lease executed in February 2013, the corporation can contract with the Operator.  The contract with IMCO has an initial term of 5 years plus two 2-years extension.  Both of the two extensions were exercised and now we are at the end of the nine years.  Initially the MTA’s approach was to issue a RFP but that process was pushed off by the pandemic.  
   
   Currently, MTA is in the midst of a RFP process for all of the other city garages but for now, there is no time to run the process for this contract and thus looking for a one-year extension.  Normally, the MTA has to take the contract to both the MTA Board and the Board of Supervisors for approval and that approval was just received on February 15.
   
   JCGC’s case is different because the IMCO contract is not a City contract because it is with JCGC.  In consultation with City Attorney Rob Stone, the corporation can act to extend the contract through the end of the Lease and that would not require the approval of the MTA board or Board of Supervisors.  The only person who needs to sign off on this is the Director of MTA.  This streamlined process clearly shortens the time as the contract expires end of April.
   
   Ms. Cheng asked if the extended contract would be through the end of the corporation’s lease with MTA in February 2023.   Mr. Malone replied that makes sense.

8.  Committee Reports
   Bylaws Committee
   Mr. Hashimoto stated that the Bylaws committee did not meet since the Website Marketing committee was not ready in the time of today’s board meeting.  It will be reschedule for a later date.

   Community Participation and Marketing Fund Committee

   Director Noguchi reported that the committee met on February 9, 2022 to review two requests for funding from the Community Participation and Marketing Funds, as follows:
   
   Rosa Parks Elementary School Japanese Bilingual Bicultural Program in the amount of $500 for their annual auction drive.

   A motion to approve the committee’s recommendation was made by Director Masaoka and seconded by Director Choi.  The motion was unanimously adopted. 

   Asian Pacific American Heritage Foundation in the amount of $5,000.  This annual event is to support the City’s APA Heritage Month Celebration. 

   Motion to support the committee’s recommendation to approve the request was made by Director Ono and seconded by Director Hsu.

   Corporate Counsel asked about the remaining balance in both funds.  Mr. Hashimoto stated that with today’s actions there will be $19,500 in the Community Participation Fund and $19,049 in the Marketing Fund.

   The garage corporation is nearing the end of its fiscal year and he reminded directors that any unused funds will be forfeited.  It will not carry over into the next fiscal year.

9. Website Review

   Web designer Greg Viloria discussed highlights from the analytic report he prepared, including:

   - Drop in consumer spending last month and possibly due to Omicron

   - The top search pages remain the same through the year with folks looking for daily rates and validation programs.  

   -People are looking for discounts and the parking validation program is a potential marketing opportunity.  Perhaps we can look into a mobile app opportunity.

   Mr. Viloria made two recommendations:

   - Since the data tends to be similar over a period of months, perhaps it makes more sense to present a quarterly report rather than a bi-monthly report.
   - The board may want to consider marketing steps based on the analysis.Director Masaoka commented that a quarterly report would make sense and also urged the Marketing Committee to consider what steps to take.

10. Updates

    Japantown Task Force (JTF) 
    
    Ms. Murase introduced herself and provided a brief bio. She replaces the former Executive Director who has resigned in December.

    Ms. Murase summarized the JTF activities for December 2021 and January 2022. 

    Japantown was the first to be designated an official Cultural District. As a result, KOHO website was launched, a JTF project that will bring together artists and art forms in new and inspiring ways. The project is just at the beginning stage and will be seeking a physical space to start. 

    Assisting to identify ways to support merchants impacted by the December 30 water pipe break. 

    Recreation & Parks Department has met with Department of Public Works on the Peace Plaza Renovation Project, but progress is slow. 

11. Japantown CBD 

    Ms. Horikiri shared highlights about the Dandelion Project which has drawn over 15,822 visitors over the eight-week run that closed on January 23, 2022.
    
    Holiday lighting was installed on 12/4/2021 and removed on 1/24/2022.
    
    Japan Center Garage flooding is being monitored and in touch with affected businesses.
    
    Heart of Jtown Murals on display at vacant storefront on Webster Street Bridge, Working on marketing reelz for Spring, Omakase J-Town Mini Food Tour, Postcards to promote Japantown, new Street Lamp Banners, Performances on the Peace Plaza, JapantownSF Press Trip, JapantownSF Visitors Map, Activities during Asian Heritage Month Celebration

    JCBD Community Ambassador Statistics – Cleaning: 311, Requests: 14, Auto Glass Clean Up: 21, Biohazard Clean Up: 30, Cigarette Butts: 1480, Sharps (Needle), Clean Up: 44, Sticker/Graffiti Removed: 86, Trash (lbs): 1501, Trash Bags Collected: 61.  Hospitality: Answered Hotline: 2, Business Contacts: 6, Hospitality Assistance: 117

    JCBD 311 Connected Worker App Training – City has implemented this pilot to improve street cleaning service response times. In partnership between the City’s 311 service to improve efficiency/response time by eliminating duplicative responses and addressing cleaning requests more quickly in areas covered by partnering CBDs.

    Ms. Horikiri shared the JCBD Mid-Year Report 7/1/2021 - 12/31/2021, attached to original Minutes on file.

12. Garage Operations and Security Report

    Mr. Abayneh reported that due to the holiday season, there has been an increase in vehicle break ins (VBI).  For December, there were 40 reported VBIs and 35 in January.  
    
    In addition, there was 104 incidents of homeless and 31 suspicious activities reported for the two months ending January 2022.

    On December 30, 2021, incident flooding inside the garage reached the building’s main electrical panels causing a short circuit to the garage and to the mall above was also affected.  Since there was no electrical power, the sump pumps could not be used, and we relied on the scrubbers to remove the remaining water. Also, during the power outage, the battery backups for the PARCS equipment kicked in which allowed some vehicles to exit at which time we raised the entire exit gates to allow vehicles to exit. Japantown CBD provided email updates to the community re: garage closure and power outage and the corporation’s website alerted its viewers of the temporary closure. Since the Annex garage was not affected.  Garage staff shutdown the Annex for public parking and was used for monthly parking only.

13. Closed Session

    Corporate Counsel confirmed that there was no need for closed session.

14. General Public Comment Not on the Agenda

    Mr. Hashimoto confirmed there was no one in queue to make public comments.

15. Announcements

    Mr. Hashimoto mentioned the dates for the 55th Annual Cherry Blossom Festival on April 9, 10, 16 and 17, 2022.  The event will be held live and in-person with a virtual streaming added. 

16. Adjournment

    The meeting has adjourned at 12:14 p.m.

Respectfully submitted,

Jan Masaoka

Secretary