Facilities Committee

Regular Meeting

Charleston, WV · March 2, 2020

Minutes

MINUTES FACILITIES COMMITTEE MEETING 4:45 P. M., MARCH 2, 2020 A/V CONFERENCE ROOM Jennifer Pharr, Chairperson, called the meeting of the Charleston City Council Committee on Facilities to order at 4:45p.m., MARCH 2, 2020, in the Audio/Visual Room in City Hall. Committee Members Present: Jennifer Pharr, Chair Ben Adams Brady Campbell Adam Knauff Sam Minardi arrived @ 4:55 Shannon Snodgrass 1. Approval of Previous Minutes – Councilmember Campbell moved to approve the minutes of the previous meeting on 2- 18-2020. Councilmember Adams seconded. There was no objection and the minutes were approved. 2. Continued Discussion Concerning the Leases and Maintenance of City Owned Facilities – Councilmember Pharr reminded the Committee that there are a number of City leases (YWCA, Roark-Sullivan, etc.) with long leases and the City covering the utilities. The Committee had been provided a copy of the lease and corresponding resolution for Roark-Sullivan, with the intent to review the lease (as well as others) to see if any responsibilities such as rent could be passed on to the organizations to offset the City’s costs. For example, it was mentioned that the utility bill at the Roosevelt Building is $16,000 a month. Speaking specifically to the Roark-Sullivan building, Councilmember Pharr stated that the Committee was going to explore options for the 50-year lease (37 years are remaining). Councilmember Snodgrass asked if the Attorney’s Office had reviewed it, and asked if the building could be given to them. Chief of Staff, Matt Sutton, replied that it was part of the conversation. Councilmember Adams said that one of the biggest issues is that replacing things like the HVAC system would be ridiculously expensive for the organizations. Councilmember Snodgrass asked what was proposed during the last meeting. Councilmember Adams said they were mostly trying to gather information at that point, since they had not yet seen the leases. 2 of the leases are set to expire in 2022 and 2024. March 2, 2020 Councilmember Adams stated that for the Roark-Sullivan building, the City pays maintenance expenses and utilities. Last year, that was about $30,000. Councilmember Snodgrass asked if the Committee received any sort of direction concerning that. Councilmember Pharr responded that the Committee will need to make some sort of recommendation as to what they would want to do with the leases, particularly the ones that will be expiring in the next few years. Each lease is very different depending on who occupies it, whether it be a restaurant, non-profit, etc. They will need to be mindful of how those organizations will be able to afford the huge expenses that the City is currently covering. If language already exists in the lease that says the organization could be responsible for that, it would help to offset the City’s costs. Councilmember Adams stated that since the non-profit groups are receiving such a great deal, the organizations would almost certainly never want to take ownership of the building and all of the associated costs. Councilmember Snodgrass asked that if the building was donated, would the City be liable for the lease. Councilmember Adams said that would be up to the attorney, although it seemed like the City would be. He further stated that the City spent $204,000 in Maintenace fees for the 4 properties (Roark-Sullivan, Smith Street Station, Sojourners and Mel Wolfe Center). Councilmember Snodgrass asked if the value of the Roark-Sullivan property was known, so that they could determine if the property was an asset or liability; that number was not known at that time. Councilmember Adams added that for that property, the City spent $20,000 on maintenance and $30,000 on utilities. Councilmember Campbell said the Committee will need to decide if the City wants to keep sinking money into the facility because they think it’s a good service to the community, or decide if they want to sell the property. Councilmember Adams added that when some of these organizations were started, the City probably took on so much of the costs to help them get started. Councilmember Pharr asked if any of the organizations were paying utilities. Sutton answered that 2 were (Smith Street Station and Mel Wolfe Center) and 2 were not (Roark-Sullivan and Sojourners). Councilmember Snodgrass asked what the lease payments were; it was answered there were no lease payments. Sutton confirmed that they have their own liability insurance and the City has insurance on the building. Councilmember Pharr said that the Committee will have to have conversations with Sojourners and Roark-Sullivan to begin discussing the utilities at a minimum. Sutton said that the Committee could make a recommendation to the Administration to start that conversation, or the Committee could do that themselves. Councilmember Campbell recommended the Committee start the conversation and ask for the Administration for its position. Sutton replied that the most the Administration had discussed with the organizations was concerning which maintenance belongs to the City and which belongs to the organization. For example, the Administration has had a discussion with one of the organizations over air filters. When they examined the lease, it seemed like that would fall under routine maintenance, which the group would cover. At the Smith Street Station building, the car wreck that tore down some of the brick was clearly the City’s responsibility. Additionally, they have been exploring what happens if March 2, 2020 the organizations fail to provide that routine maintenance which leads to larger problems. Councilmember Minardi confirmed that the maintenance cost provided did not include the cost of City labor. Councilmember Snodgrass confirmed that the Roark- Sullivan lease was valid as it had passed Council in 2007. Councilmember Pharr stated that the Committee’s options were to bring in the organizations for a discussion, or recommend that the Administration do that. Councilmember Minardi said the Committee should absolutely talk to them about utilities, the bigger question being if the City wanted to keep the property. Councilmember Snodgrass was of the opinion to give the facilities to the organizations. Councilmember Minardi said there might some legal issues with that. Councilmember Pharr stated that Sojourners is not interested at all in having ownership. Sutton added that as the leases start to expire, further decisions would have to be made. Councilmember Snodgrass said she didn’t know what options there would be for the 50- year lease. Councilmember Adams said the Committee could see if they could have them pay their utilities. Councilmember Snodgrass asked if the City could ever sell the Roark-Sullivan building, being bound by a 50-year lease. From the audience, Councilmember Jenkins said he believed there was case law pertaining to binding future City Councils to limit these types of leases to 1 year, so there may be a possibility to alter that lease. Councilmember Snodgrass recommended that the Committee needed to know where it stood in regard to the lease before they could begin to negotiate. Councilmember Campbell requested that the City Attorney review the lease for the Roark-Sullivan building, and give the Committee possible options. Specifically, Councilmember Campbell said they would want to know what would happen if the City were to divest itself of the property. Councilmember Snodgrass agreed. Councilmember Adams added that 50 years is the maximum allowed lease time per State code. Councilmember Pharr said they will also want to have a conversation about the utilities, specifically with Roark-Sullivan (are they doing the preventative maintenance, how often, etc.). Councilmember Adams said he interpreted the lease to read that the organization should be paying utilities. Councilmember Snodgrass asked if the lease would be void if the organization is technically violating it. Councilmember Minardi wasn't sure, as the City had been allowing that to happen for years. Councilmember Knauff said they might be able to use that to get out of the lease (which was not a recommendation, just an option). Councilmember Minardi confirmed that Roark-Sullivan had never paid a lease as far as the current Administration knows. Councilmember Snodgrass said if the Committee was to be charged with making recommendations, then they would need to discuss things like whether an organization was honoring their lease. Councilmember Adams added that the Roark-Sullivan lease was enacted over 10 years ago, and their current leadership may not be aware of every stipulation contained in it. March 2, 2020 Councilmember Pharr recommended that the conversations with the organizations happen within the Committee, which would be open to the public. The Committee can ask them if they are aware of the terms of their leases, and will additionally ask the City Attorney to review the leases with the Committee’s questions in mind. Councilmember Minardi added that if the Committee decided not to review the upcoming expiring leases, they should give the organizations proper notice to prepare. Councilmember Adams suggested that they Committee alert the organizations that they will be discussing leases and finances. Councilmember Snodgrass asked why they hadn’t been sent a letter stating the fact that they hadn’t been paying the lease or utilities. Councilmember Adams said that was most likely because this is new information that has come to light relatively recently. Councilmember Campbell asked if the City should send out a certified letter before they met with the Committee; Councilmember Adams recommended reaching out to them informally. Councilmember Snodgrass said it would be good for the Committee to know what parts of the leases are not being honored. Councilmember Knauff suggested that they ask the City to produce a letter stating that there are possible violations of the lease, asking them to meet with the Committee to give them enough time to put together any financial information etc. Councilmember Minardi added that there wasn’t anything wrong with the Committee asking the City Attorney to uphold the terms of the lease, and for the Committee to bring the organizations in for a conversation. Councilmember Knauff thought it would be a good idea to have the City Attorney review the lease, send the Committee and the organizations their findings and ask them to meet with the Committee for a discussion. Councilmember Snodgrass agree that the intent of the meeting should be made clear. Mayor Goodwin added that most Councilmembers and members of the community probably don’t even realize that the City owns those buildings and supplement them with City funds. She gave the example of how the City supplements the Humane Association’s budget because of the service they provide to the City. She posited that perhaps the money spent on those buildings (as a result of being occupied by non-profit organizations) be similarly recognized in the budget. Additionally, she did not think it would an interrogation to bring in the groups to ask how they operate (since the City pays for the facility), and how the City can help to keep the cost down. She suggested that the Committee might also want to tour those facilities. Councilmember Snodgrass suggested having a standard way to record the information presented to the Committee. Councilmember Pharr said that no matter how it is presented to them, it will be a shock to Roark-Sullivan to have to pay utilities since they have never been required to do so. It would be best, in her opinion, to have the Committee meet with them. Councilmember Snodgrass advised caution, as the mentioned organizations are not the only 501(c)(3) that are subsidized by the City. To have certain standards for one group but not all, could put the City in a dangerous situation. Councilmember Campbell wondered if there were any grants the organizations could pursue to help supplement the cost of the lease, utilities, etc. Councilmember Snodgrass confirmed that one of the organizations March 2, 2020 has a substantial foundation. Councilmember Pharr asked the Committee how they would like to proceed. The Committee decided to invite 2 groups at a time (at the same meeting, but not at once) to reviewing all the leases and ask for a financial picture of the organization, starting with Roark-Sullivan and Smith Street. Sojourners and Mel Wolfe will be invited to the following meeting. Councilmember Campbell motioned to adjourn the meeting. Councilmember Minardi seconded. Meeting adjourned. March 2, 2020

Agenda

Packet

CITY OF CHARLESTON West Virginia Council Member – AT LARGE Jennifer Pharr Facilities Committee, Chair 3 Lambert Place Unit #3 Urban Renewal Committee Charleston, WV 25314 Planning, Streets and Traffic Committee Telephone: 304‐615‐7574 jennifer.pharr@cityofcharleston.org TO: Facilities Committee FROM: Jennifer Pharr, Chair RE: Committee Meeting There will be a Committee meeting of Facilities on March 2, 2020 – 4:45 PM in the A/V Conference Room, City Hall, Room 308. The agenda will be as follows: Approval of Previous Minutes 1. 2‐18‐2020 Continued Discussion Concerning the Leases and Maintenance of City Owned Facilities Adjournment *Meetings may be recorded and broadcast via internet https://charlestonwv.civicclerk.com JP/ns City Council | 501 Virginia Street, East | Post Office Box 2749 | Charleston, West Virginia 25330 www.charlestonwv.gov | 304.348.8179 | 304.348.8038 fax Page | 1 of MINUTES FACILITIES COMMITTEE MEETING 5:00 P. M., FEBRUARY 18, 2020 A/V CONFERENCE ROOM Jennifer Pharr, Chairperson, called the meeting of the Charleston City Council Committee on Facilities to order at 5:00p.m., FEBRUARY 18, 2020, in the Audio/Visual Room in City Hall. Committee Members Present: Jennifer Pharr, Chair Ben Adams Brady Campbell Adam Knauff Sam Minardi 1. Approval of Previous Minutes – Councilmember Minardi moved to approve the minutes of the previous meeting on 2-3- 2020. Councilmember Knauff seconded. There was no objection and the minutes were approved. 2. Discussion with 304 Geeks – Councilmember Pharr introduced Tony Schliesser and John Moore from 304 Geeks who will be sharing with the Committee their recent experience with the Charleston Coliseum and Convention Center. Schliesser stated that this was their first year moving from a hotel to the Convention Center. They experienced 31% growth from the previous year with 520 room nights. Councilmember Minardi confirmed that the dates were November 7-9, 2019. The attendees liked the change of venue, but because of the numerous events happening in the facility that week, there were some signage problems resulting in attendees getting lost. Councilmember Adams confirmed that there were 360 attendees plus families, about half were from out of state. This was also this first time the event had international attendees. They are looking to substantially expand their event for 2020, as they expect to pull attendance from another conference that had closed. They anticipate increasing their event to 5 days with a projected 850 room nights. Councilmember Minardi asked what kinds of problems they encountered. Schliesser February 18, 2020 Page | 2 of answered that, in addition to the signage problems, the trash removal was slow, and they experienced things like toilet paper being out in the restrooms. They did not get the attention they expected especially since they were very accurate with their projected attendees. He mentioned that there wasn’t a sign package that explained various wayfinding options. Mayor Goodwin asked how the follow-up with the Convention Center went. Schliesser explained that it was an informal sit-down meeting which 304 Geeks asked to have. Councilmember Knauff confirmed that the group did not receive feedback directly from the Convention Center. The group was already discussing returning for the next 2-3 years with staff during the convention. Councilmember Adams asked if attendees pay for the event out of pocket. Moore responded that employers will frequently pay for expenses, but security consultants would be paying out of pocket. Councilmember Minardi asked how the Convention Center’s technology worked for them. Schliesser answered that they created their own network as well as purchased the in-house wi-fi. They did not experience any problems with the Convention Center’s wi-fi. Councilmember Campbell asked if there were vendors for their event. Schliesser replied there were 7-8 vendors (mostly tech recruiting), and they were able to select where the vendors were placed. The vendors and speakers said they were shocked at how big the facility was. They would prefer to keep their event attendee driven/focused, so they would prefer to only allow vendors that will help the attendees with their careers. Councilmember Knauff asked if they used the Convention’s catering service. Schliesser answered that they had coffee and water service as well as a cash lunch area, which was popular. Councilmember Knauff said he was curious as to whether the CBV was given lists of local restaurants for attendees. Councilmember Pharr asked if they thought having a concierge on-site to offer suggestions and directions would be beneficial. Schliesser answered that it would be. He offered that 304 Geeks worked with a few local restaurants to offer discounts to their attendees, which was not something that had not been offered to them. The Mayor added that the Convention Center typically does offer that. Councilmember Pharr asked if the attendees liked the City or gave them any feedback. Moore replied that they didn’t have many social activities during the last convention, but he did see their attendees all over downtown. Moore added that they were never shown a list of services that could be provided to them (like the use of the after-hours lounge). Councilmember Pharr asked what they thought the City needed to attract larger conferences like the one that recently closed. Schliesser replied that the former conference was close to 4th Street Live, which is a covered outdoor street with bars, restaurants and live music, shut off to traffic. Additionally, the proximity to a large number of options is a big attractor. When asked by Councilmember Knauff if the attendees were able to view the new dock, Schliesser replied that parts of the Convention Center were blocked off to them. February 18, 2020 Page | 3 of Councilmember Pharr confirmed that they haven’t yet signed a contract for 2020 year, but they intend to. Moore added that in terms of positive feedback, the size of the Convention Center allows their convention to grow every year and the new facility is very nice. 3. Continued Discussion Concerning the Leases and Maintenance of the Facilities Owned by the City of Charleston City Manager, Jonathan Storage, began by providing the Committee with several lists of facilities that included pools, concession stands, other free-standing structures such as bath houses, in addition to the more known City owned properties (fire stations, community center, etc.). These totaled to about 238 properties. Councilmember Minardi confirmed that they are not all occupied. Councilmember Knauff confirmed that CSB properties (pump houses) were filtered out of the list, and it is what the City’s insurance broker uses. Councilmember Adams asked what properties the Committee can and can’t potentially change. Councilmember Campbell confirmed that “Former Warehouse” is the Ball Park building. Mayor Goodwin added that the Committee would probably want to identify those properties to Councilmember Adam’s question, and also take into consideration those instances where the City is the landlord to properties, meaning they are responsible for maintenance and paying utilities. She cited as an example the Mel Wolf Center in which the City receives no rent but pays for all utilities and maintenance costs. Councilmember Adams said it is one thing for the City to take an active role in ensuring a non-profit (like the Roark Sullivan Center) is running and working, but at some point they should be able to operate without the City. Mayor Goodwin added that the previous administration signed a lease with Roark Sullivan for 50 years in 2007. Councilmember Adams asked about the Vandalia Center. Storage replied that it is being used by the Lucy Quarrier Weavers. While they pay a fee, Storage pointed out that the City loses about $4,000 year on that facility. Mayor Goodwin said it would be helpful to have a recommendation from the Committee on what should be done with each of the buildings presented to them. Storage agreed. He presented the Committee with a list of 6 properties that included build out expenses, maintenance expenses, utilities, annual rent, and annual operational profit/loss. The City is using CGBD money to offset some of those costs. Storage added that with a relatively small maintenance staff, it is a challenge to keep up with a regular maintenance routine (such as replacing air filters). Councilmember Minardi asked about the 50-year lease. Storage answered that it should have gone to Council with a public hearing. Additionally, 50 years is the longest municipal lease time permitted by the state. Minardi asked that the lease be found in the records. Councilmember Pharr confirmed that Samuel White, PC will not be renewing their lease in June. Storage added that they are already looking to replace that tenant, possibly with a state agency that would take care of a lot of their own facility needs. Councilmember Pharr asked if available spaces for the Morris Building should be advertised on social media. Storage replied that, at this time, it wasn’t necessary. February 18, 2020 Page | 4 of Councilmember Adams confirmed with Storage that certain groupings on the list (such as the community center concession stands and maintenance buildings) were relatively low cost, and did not need to be a concern for the Committee. Councilmember Campbell asked about the “Maintenance Building” on B 808 Virginia St W, and confirmed that it was a fire station. Councilmember Campbell asked how often “Fitness Center-Fire Dept.” on 26th Street was utilized. Storage provided a photo of the facility, and added that he had not had a chance to confirm with the CFD as to its current use. Storage added that the Morris Street Building is a revenue bond facility, so while payments have to be received from the spaces, a profit is not required. However, it is important to have a tenant that will pay on time, among other things Councilmember Minardi asked how many years were left on those bonds. Storage replied that he will find that out for him. Councilmember Adams asked about “Fire Station #9 Corridor G.” Storage answered that it is leased to the South Charleston Fire Department. South Charleston agreed to take all of the emergency calls for South Ridge if the City leased the building to them. The City also donated an old fire truck. South Charleston is responsible for the maintenance on the building. In order to build the facility, the City took out bond debt, 4 years of which are still left to pay. Councilmember Adams asked about the “Roosevelt Building”. Storage and Mayor Goodwin answered that it is used as a community/neighborhood center, after school programs, senior services and houses the Traffic Division of the CPD. Storage added that the building is in desperate need of major repairs, and that the Administration is open to the possibility of selling the property. The Mayor added that, if that were to happen, the Administration would have to figure out where to relocate the Traffic Division, the kids’ programs and the senior services (they serve 5 days of meals to a large number of seniors). Councilmember Campbell asked about the unnumbered “Orchard Manor Fire Station.” Storage stated that he believed it was a fully operational fire station. He confirmed that “Baker Lane (Liability Only)” was Cato Park. Councilmember Knauff confirmed that the City owned that road and provided maintenance. Councilmember Adams asked if there were any other facilities like “Construction Crew Headquarters” on Falcon Drive that is being used primarily for storage. Storage answered that part of the Vandalia Neighborhood Center would qualify. The Convention Center Board is currently in talks with Greyhound over leasing “Municipal Parking #3,” so it has a potential to be profitable. Councilmember Pharr asked if there was a new lease with the CVB for their space in the Morris Street Building. Storage answered there wasn’t, and that he was meeting with them this week. Storage offered to send the Committee members a copy of the expired lease for their recommendations. Councilmember Minardi motioned to adjourn the meeting. Councilmember Campbell seconded. Meeting adjourned. February 18, 2020 Page | 5 of February 18, 2020 Page | 6 of February 18, 2020 Page | 7 of February 18, 2020 Page | 8 of February 18, 2020 Page | 9 of February 18, 2020 Page | 10 of