Castro/Upper Market Community Benefit District

Minutes of the Regularly Scheduled

Board of Directors Meeting on July 10, 2008

Castro Community Room, 501 Castro Street, San Francisco

The meeting was called to order by President Herb Cohn at 6:12pm with a quorum present.

Directors present: Herb Cohn, Kimberley Daniels, Steve Desdier, Brian Greene, Tim Patriarca, Pat Sahagun, Pauline Scholten, Gustavo Serina;

Directors absent and excused: Dominic Campodonico, Ken Stram, Ken Wingard;

Staff, Contractors, Guests: Andrea Aiello (Executive Director); Mary McCue, Brian McCue, Bob Betis (MJM Management); Officer Jane Warner (SFPSP); Richard Magary (taking Minutes).

Approval of Minutes

After noting 3 corrections, Minutes of the Board’s June 12, 2008 meeting were approved (M-GS, 2-TP; all “yes,” except KD abstained - did not attend June 12).

Treasurer’s Report

June 2008 Financial Statements and supporting information were distributed. BG and others thanked SD for the thorough, detailed reports.

SD noted the ~$5,600 YTD deficit at June 30, 2008, vs. a projected $27,333 deficit for the year, if additional grant funding is not identified and secured. The June 30 YTD under-budget amount is because some budgeted costs are scheduled for later in the year.

$20,474 of uncollected Assessments represents current status, and is almost all current-year delinquencies as reported by the City Tax Collector. Historically, nearly all annual Assessments are paid by year-end, with only ~$500 currently unpaid from prior year Assesments since inception.

See further items later in these Minutes under “Finance Committee Report” and “Additional Bank Accounts.”

Maintenance Report

MJM’s Report for June 2008 had previously been emailed to Directors. Brian McCue reported that June was a busy month, due to increased activity in the area from Pride, Pink Saturday, Frameline Film Festival, and Same-sex Marriage celebration crowds. Details are in the Report. Some specific “hot spot” incidents were reviewed briefly.

Bob Betis, MJM’s Human Resources Manager, described his professional background in HR, and summarized MJM’s policies and procedures for EEO, employee recruiting, screening, hiring, initial training, continued on-the-job training, personnel benefits and policies, employee scheduling, etc. Emphasis throughout is on “customer service and awareness” using a hospitality industry model.

Finance Committee

Financial Statement Review for 2008-2009

SD Moved on behalf of the Committee (no 2^nd required) its recommendation to engage the firm of Sterck, Kulik & O’Neill Accounting Group, Inc. to perform the City-required Review of the District’s Financial Statements for the year ended June 30, 2008 at a cost not to exceed $4,500.00. After discussion the Motion was approved unanimously, and SD and AA were authorized to complete negotiations and sign documents for the engagement.

2008-2009 Budget

After discussion, the District’s Budget for 2008-2009 was unanimously approved (M-GS, 2-PatS), with Income and Expenses of $434,400 each (including $27,333 of as-yet-unidentified Income from “New Grant Funding”), and Net Reserves of $352,254. A copy of the Budget, as approved, is filed with these Minutes.

Assessment Rate for 2008-2009

The District’s Management Plan allows an annual increase in the Property Assessment Rate of up to approximately 3% for the 2008-2009 year, which would be about $12,000. The matter was discussed in detail by all Board Members present, especially in light of the $27,333 net-yet-identified New Grant Funding noted above. After discussion, a Motion to increase the Assessment was defeated (M-GS, 2-BG; 2 yes, 6 no). The Finance Committee was asked to re-visit the potential deficit and how to address it, in consultation with the Development and other Committees.

Safety Report

Jane Warner of S.F. Patrol Special Police reported that security issues during the busy month of June were primarily normal and routine. Crowd dynamics were successfully managed during Pink Saturday, which had an official City attendance estimate of about 50,000. There is increasing sentiment for “no alcohol on the streets” for that event next year. She reported on two recent bank robberies; incident problems at and complaints about quality of life issues at the U.S. Postal Service Office at 18^th & Diamond Streets and at Harvey Milk Plaza; and efforts to deal with a locally-based, frequent offender. She is researching a device that would aid logging of SFPSP’s activity under its CBD contract.

Greening Committee

No report

Business Attraction Campaign

No report

CBD Streetscape Improvement and Related Planning

The Church Street/Duboce Trackway Project is moving ahead.

Urban Ecology expects to have its draft Streetscape Project Report ready for Committee review in early August, and presentation at the August Board Meeting.

Business Attraction Campaign

Another Broker Tour was held on June 30. Ken Stram was unable to attend this meeting with a further report.

Insurance Coverage

The Liability Insurance coverage approved at the June 12, 2008 Meeting was unavailable when the CBD’s application was formally presented to the insurance company, which requires a prior history of coverage. An alternative proposal for coverage at $1million/incident-$2million aggregate is available from the Non-Profit Insurance Alliance at an annual cost not to exceed $1,000. It was unanimously approved (M-GS, 2-BG) to approve such coverage, and to authorize AA and SD to complete arrangements for the policy and payment.

Community Challenge Grant

Submitting a CCG Proposal was anticipated during discussion at the June 12 Meeting. Board Members received draft updates during the month, and the final CCG Proposal by email when it was submitted by the July 9 deadline. AA summarized the Proposal for $100,000 for hardscape and landscape improvements at Harvey Milk Plaza. After discussion, it was unanimously approved (M-GS, 2-SD) to confirm submission of the Proposal.

Andrea said she will schedule an Agenda item for the Fall Long-range Planning Retreat (see below), to discuss procedures and staff authority to develop and submit grant proposals and similar items, when time deadlines do not permit full Board review and authorization prior to a filing deadline.

Requests for Proposals

The District’s major contracts for maintenance and security will be due for renewal in January 2009. It was agreed that Requests for Proposals should be issued to encourage competitive bidding for these services. A Board Committee coordinated by AA and consisting of KD, BG, TP and any other interested Board Members will meet to draft recommended criteria and procedures for Board review and approval.

Long-range Planning Retreat

AA will poll the Board to establish a date and other logistics for a Board Long-range Planning Board Retreat, to be held in the fall after Urban Ecology’s Report is received.

Castro Street Fair

AA asked Directors to mark their calendars and to help prepare and staff the District’s booth at the Fair on Sunday, October 5.

2175 Market Street Development

HC and RM met recently with the developer of a proposed major project at 15^th and Market Streets, currently a Union 76 gas station. It would have about 51 residential units over about 14,000sf of ground floor commercial/retail space, and about 46 parking spaces at the Market-Octavia Plan mandated 75% ratio. AA will follow the planning to assure appropriate District input when and if appropriate.

Additional Bank Account

SD reported that he plans to open an additional bank accounts at Sterling Bank and Bank of America, to help implement the Board’s September 2007 decision to diversify financial deposit institutions.

Minutes

SD requested that Minutes of Board Meetings be distributed within about 7-10 days after a Meeting. RM agreed to do so.

Public Comment: No public comment.

Adjournment: Meeting was adjourned at 7:40pm.

Minutes taken and prepared by Richard Magary.