Castro/Upper Market Community Benefit District

Minutes of the Regularly Scheduled

Board of Directors Meeting on September 11, 2008

Castro Community Room, 501 Castro Street, San Francisco

The meeting was called to order by President Herb Cohn at 6:08pm with a quorum present.

Directors present: Dominic Campodonico, Herb Cohn, Kimberley Daniels, Tim Patriarca, Pat Sahagun, Gustavo Serina, Ken Stram, Ken Wingard;

Directors absent and excused: Steve Desdier, Brian Greene, Pauline Scholten;

Staff, Contractors, Guests: Andrea Aiello (Executive Director); Don Neuwirth, Linda Roberson (Urban Ecology); Bryan McCue (MJM Management); Officer Jane Warner (SFPSP); Richard Magary (taking Minutes); and two (2) members of the public.

Those present introduced themselves to the group. A sign-in sheet was provided for members of the public who attended.

A “Revised Agenda” was distributed for use at the Meeting. Several items, most of which had been emailed previously to Board Members, were attached for reference.

Approval of Minutes

Minutes of the Board’s August 14, 2008 meeting were unanimously approved (M-GS, 2-KW).

Finance Committee Report

Herb Cohn presented the Finance Committee’s Report, since Treasurer Steve Desdier was unable to attend.

August 2008 Preliminary Financial Statements were reviewed.

The Report “Recommendations/Motions from the Finance Committee from 8/25/08” was reviewed and discussed. Following the discussion (and agreement to revise the order in which the items were listed), the Motion of the Finance Committee (which does not require a Second) was unanimously approved, as follows:

1) The Castro/Upper Market CBD shall maintain an operating reserve of cash at all times to cover at least three (3) months of operating expenses.

2) For Fiscal 07/08 to 06/09, the Board shall designate (set aside) the following amounts for the following purposes:

a) Operating Revenue Reserve (3 months) $100,000

b) Matching Grants Reserve $125,000

c) Mandated Streetscape/District ID $140,000

(12% of gross revenues per Management Plan)

It is understood that these are merely Board set-asides from unrestricted funds (net assets) and may be reallocated whenever the Board deems necessary.

3) The Annual Financial Report may be distributed to any interested party. The interim financial statements are for management use only. Parties interested in the interim financial reports may attend any of the monthly Board Meetings for a verbal update, but no paper or electronic copies of the interim statements are to be distributed to anyone but Board Members, the Executive Director and/or the Recording Secretary.

The Finance Committee’s “Recommendation for Discussion” of the current-year projected deficit of $27,333 was discussed. It was noted that cutting operating costs in the current or next fiscal year was an additional option, along with those in the Committee’s recommendation. The final Streetscape Plan will be a good document to support fundraising. The Board’s consensus from this discussion was that, as a next step, the Board should continue to consider ways to raise unrestricted funds (and the sources for them). The topic will be re-visited within two months (by the November Board Meeting). Tim Patriarca agreed to lead and to help coordinate the effort.

Maintenance Report

MJM Management’s written Report for August 2008, previously emailed to all Board Members, was discussed by Bryan McCue from MJM. A few buildings continue to be the source of as much as 30% of major “dumping” which MJM reports to 311-DPW for pickup. Bay Times newspapers are not placed in racks and often become windblown debris. Dominic Campodonico and Andrea Aiello will review and follow up specific issues. Officer Jane Warner of SFPSP offered to assist when and as needed.

Safety Report

Officer Jane Warner of SF Patrol Special Police reviewed the “Activity Log CBD” Report for August which had previously been emailed to all Board Members. She was asked to provide an expanded Key to explain all SFPD codes used in the Report. She emphasized that, once again, 3-4 locations in the District are the source of a disproportionate number of problems and calls for service.

Castro-Upper Market Streetscape-Pedestrian Safety Plan

A “final draft” dated September 11, 2008 of the document prepared by Urban Ecology was distributed and reviewed in detail by Linda Roberson and Don Neuwirth of UE, with emphasis on the “Implementation and Phasing” sections on pages 49-57. Ways to interface with other City planning efforts, including Market-Octavia, Upper Market Workshops, Eastern Neighborhoods, etc. were reviewed. After further discussion, it was unanimously approved (M-GS, 2-KS) to accept and approve the Plan. Andrea Aiello will work with Urban Ecology on some minor, non-substantive edits before the Plan is published.

Survey

The Board reviewed a proposed “Cleaning/Maintenance & Public Safety Survey” (including a Board Member Application Form). It was prepared by the RFP Committee (Kimberley Daniels, Brian Greene, Tim Patriarca, Andrea Aiello), and would be mailed to Property Owners and businesses in the District. The draft was previously emailed to all Board Members. Survey results will help shape the final Scope of Services and other sections in the District’s RFPs for Maintenance/Cleaning and for Safety Services which are being drafted by the Committee. Suggested clarifications and changes to the Survey were noted. After discussion, it was unanimously approved (M-GS, 2-PatS) to approve the Survey. It will be mailed as soon as possible to all Property Owners on the CBD’s list, and to significant businesses in the District, using MUMC’s mailing list. Andrea then will tabulate Survey responses. Then, the RFP Committee will further refine the RFP draft before presenting it for final Board approval at the October Board Meeting.

Business Attraction Campaign

Kan Stram presented and discussed materials from the Program’s July 28 Broker Tour, and Report Memos dated August 14 and September 11, 2008. He reviewed the Program’s philosophy, work process, responses received, challenges, and lessons. He noted that as much as 175,000 s.f. of additional retail/commercial/office space is expected to be built in the next several years, in new developments along Upper Market Street. The Program continues its outreach to San Francisco brokers, and is expanding out-of-town contacts as well.

Executive Director’s Report, Executive Committee Meeting

Andrea Aiello’s August 2008 Executive Directors Report (including Minutes of the August 20, 2008 Executive Committee Meeting) was previously emailed to all Board Members. She reviewed some key items and answered Board Member questions.

Public Comment

This section of the Agenda was called at its posted time, 7:25pm. Neither member of the public attending wished to make comments, but each thanked the Board for the opportunity to observe.

Castro Courier Newspaper Article; CBD’s Media Spokesperson

An article in the September 2008 issue of the local Castro Courier monthly newspaper was discussed. While the page one headline seemed negative, most found the story content to be balanced.

It was agreed that all media and similar inquiries will be referred to Andrea Aiello who will make or coordinate responses.

Flower Baskets

Andrea Aiello reported on behalf of Brian Greene who could not attend. He has been working as a Committee on this project with merchants Petyr Kane and Dennis Collins (Citizen/Body). The Committee still is researching several items, and hopes to report at the next Board Meeting. Its work to date includes contacting potential local vendors which may offer lower costs (and a “buy locally” option vs. the City’s Oregon-based vendor), considering seasonal vs. year-round baskets, exploring the potential for non-CBD funding, considering which locations offer the most impact, developing a budget, etc. The Committee wants the Board to re-visit its earlier position regarding CBD funding of the project, perhaps for initial costs for frames and brackets, etc. Meanwhile, the understanding was reconfirmed during discussion, that the CBD currently is willing to sponsor, plan and develop the project, but that no CBD funds currently are available for startup or ongoing maintenance costs of flower baskets.

Board Recruiting, December 2008 Elections

Andrea noted that the Board Development Committee (Herb Cohn, Pauline Scholten, Gustavo Serina and Andrea Aiello) is developing a Nominations Slate for the December 2008 annual Board election. See the August 20, 2008 Executive Committee Meeting notes and the discussion of a Board Member Application being sent as part of the Survey (see above) for related information. All Board members were asked to continue outreach to identify additional, qualified Board members.

Andrea reported that Pauline Scholten (who was unable to attend this Meeting) has suggested that a requirement be considered, that a majority of Board Members be Property Owners in the District. While several benefits are apparent, there also are issues if this is codified, then fails to be maintained. It was agreed to table the discussion until a Meeting that Pauline is attending.

It was agreed that the District’s mandated annual Public Meeting with Property Owners should be scheduled for January-February, after the 2009 Board is seated. Dominic Campodonico offered the use of Home Restaurant as a venue.

RFP Committee

Andrea Aiello led a discussion of a draft Cleaning/Maintenance RFP document. It was prepared by the RFP Committee (Kimberley Daniels, Brian Greene, Tim Patriarca, Andrea Aiello). Board members were asked especially to consider items marked “*” and to consider what are or should be the CBD’s “baseline services.” As noted above, Survey results will help shape the final Scope of Services in the RFP. Suggested clarifications and changes to the current draft were noted. Additional comments should be sent to Andrea.

Adjournment: The Meeting was adjourned at 8:15pm (M-GS, 2-TP)

Minutes taken and prepared by Richard Magary.

Approved October 9, 2008