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Home My WebLink About09469RESOLUTION NO. 9469 A RESOLUTION CONSENTING TO THE ADOPTION OF THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO'S RESOLUTION ADOPTING THE FISCAL YEAR 2002 BUDGET INCLUDING AN OPERATION AND MAINTENANCE BUDGET BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: SECTION 1. The City Council of Pueblo hereby consents to the adoption of the Urban Renewal Authority's Resolution 2001 -12 -2 dated December 11, 2001, adopting the fiscal year 2002 Budget including an Operation and Maintenance Budget. SECTION 2. The President of the City Council is hereby authorized to approve the adoption of the resolution. LIZA ATTEST: City rk INTRODUCED: December 26, 2001 Rich Golenda Councilperson Background Paper for Proposed Resolution AGENDA ITEM #, DATE: December 26, 2001 DEPARTMENT: HOUSING AND COMMUNITY DEVELOPMENT TITLE ISSUE A RESOLUTION CONSENTING TO THE ADOPTION OF THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO'S RESOLUTION ADOPTING THE FISCAL YEAR 2002 BUDGET INCLUDING AN OPERATION AND MAINTENANCE BUDGET Approval of the FY 2002 Pueblo Urban Renewal Authority budget including the Operation and Maintenance Budget for the Pueblo Convention Center managed under an agreement between the Pueblo Urban Renewal Authority and Globe Spectrum Managing Facilities. RECOMMENDATION Approve the resolution consenting to the adoption of the URA resolution. The URA adopted the FY 2002 budget at the URA meeting held on December 11, 2001. BACKGROUND The Pueblo Urban Renewal Authority of Pueblo, Colorado, is carrying out the Urban Renewal Plan for Downtown Pueblo and pursuant to its bond indenture, the Authority must adopt a budget including an Operations and Maintenance Budget for the Pueblo Convention Center. Globe Spectrum has prepared the budget for the Pueblo Convention Center operation. FINANCIAL IMPACT The total operation budget for the Pueblo Urban Renewal Authority is attached PUEBLO CONVENTION CENTER /GLOBAL SPECTRUM Proposed Operations /Maintenance Budget 2002 12/11/2001 2002 Budget 1 2001 Act /Prof Variance EVENT REVENUE 740,000 PDF /CITY RESOLUTION 212,000 RENTAL REVENUE 178,200 CAPITAL OUTLAY F &B SALES 1,064,273 A/V & ELECTRICAL REVENUE 6,575 OTHER EVENT REVENUE 202,700 65,027 TOTAL EVENT REVENUE 1,451,748 1,350,658 101,090 EVENT EXPENSES F &B PRODUCT EXPENSE 297,996 F &B PT /TEMP LABOR EXPENSE 404,424 F &B OTHER EVENT EXPENSE 79,704 EVENT EXPENSE - ADVERTISING /PRODUCTION 45,100 EVENT EXPENSE - 4,890 EVENT EXPENSE - PT /TEMP LABOR 50,595 EVENT EXPENSE - EQUIPMENT RENTAL 2,229 EVENT EXPENSE - LINENS /LAUNDRY 13,496 EVENT EXPENSE - OTHER 29,540 EVENT EXPENSE - UTILITIES 9,450 INDIRECT EXPENSES ADVERTISING 10,268 AUDIT /ACCOUNTING FEES 4,000 BANK ACCOUNT FEES 2,940 COLLECTIONS /BAD DEBT EXPENSE 3,400 COMPUTER EXPENSE 12,645 DIRECT SALES 4,310 DUES /SUBSCRIPTIONS 6,034 EMPLOYEE BENEFITS 94,289 EQUIPMENT - NEW 27,059 EQUIPMENT LEASE AGREEMENTS 10,060 EQUIPMENT MAINTENANCE AGREEMENTS 27,745 EQUIPMENT RENTAL 2,672 INSURANCE - WC /BLDG /PROPERTY 34,281 LEGAL FEES 1,000 LICENSES /PERMITS 1,372 LINENS /LAUNDRY 2,313 MAINTENANCE /CLEANING SUPPLIES 19,590 MEETINGS /CONVENTIONS /TRAININGS 18,225 OFFICE SUPPLIES 2,700 PAYROLL TAXES 37,358 PHOTOGRAPHY /DESIGN 1,420 POSTAGE 5,102 PRINTING 8,380 PROMOTIONAL MATERIALS 13,430 REPAIRS - BLDG /EQUIPMENT 40,185 SALARIES - ADMINISTRATIVE 354,353 TELEPHONE 31,812 TRAVEL & ENTERTAINMENT 10,268 UNIFORMS 12,312 UTILITIES 98,530 TOTAL OPERATION EXPENSES 1,835,475 1 1,745,123 1 90,352 Projected Operating Deficit (383,727) (394,465) 10,738 OTHER REVENUE SALES /PROPERTY TAX INCREMENT 212,000 VENDOR'S FEE 1,362,900 OTHER NON -EVENT INCOME 34,600 Total Other Revenue 1,609,500 OTHER EXPENSES DEBT SERVICE 740,000 PDF /CITY RESOLUTION 212,000 OTHER EXPENSES 243,500 CAPITAL OUTLAY 28,100 MANAGEMENT FEE 67,200 Total Other Expenses 1,290,800 2002 PROJECTED PROFIT(LOSS) 65,027 ' 2001 reserves will be used to offset projected loss. Reserve amount will be available once year is closed. PUEBLO CONVENTION CENTER 2002 EVENT REVENUE PROJECTIONS EVENT DAYS 2001 Pre - Booked 571 173 398 $359,769 $312,495 $37,005 $48,458 $35,940 $793,667 2001 Budgeted 571 $671,046 $462,262 $190,265 $121,838 $51,140 $1,496,551 2001 Projected Actual 600 1 $605,013 $405,039 $165,771 $100,986 $54,482 $1,331,291 2002 Pre - Booked 232 $398,997 $509,801 $49,545 $121,960 $47,175 $1,127,478 2002 Discounted Pre - Booked $330,000 $406,933 $40,007 $90,549 $46,545 $914,034 2001 Actual Increase $245,334 $92,544 $128,766 $52,528 $18,542 $537,714 (During 2001 Fiscal Year 427 173 2002 Budgeted 632 232 400 $575,334 $499,477 $168,773 $143,077 $65,087 $1,451,748 M ro PUEBLO CONVENTION CENTER 1 � FISCAL YR 2002 ° INDIRECT EXPENSES m OD r-, CD m BUDGET PROPOSAL BUDGET ACTUAL VARIANCE m Rm EXPIENSFC 200 EVENT SERVICES 77,729 � EXECUTIVE 133,742 0 (77,729) FINANCE FOOD AND BEVERAGE 107,067 0 (133,742) {107,067} MARKETING 133,341 0 {133,341} OPERATIONS 237, 727 237,727 0 (125,470) = OTHER EXPENSES 82,975 0 (237, 727) 0 {82,975} L) TOTAL INDIRECT EXPENSES: 898,051 D 0 4898,051y m OD r-, CD m INTEREST & DIVIDENDS OTHER RENTAL INCOME ADVERTISING KIOSK INCOME MISCELLANEOUS INCOME FINANCE /COLLECTION FEES VENDOR'S FEE SALES /PROPERTY TAX INCREMENT TOTAL OTHER INCOME /EXPENSE 1,800 0 1,800 3,000 0 3,000 8,000 0 8,000 20,700 0 20,700 1,100 0 1,100 1,362,900 0 1,362,900 212,000 0 212,000 $1,609,500 $0 $1,609,500 GLOBAL SPECTRUM OTHER INCOME BUDGET - FY2002 ACCOUNT TITLE MAS -90 INTEREST AND DIVIDENDS ACCOUNT DESCRIPTION ITEMIZED EXPENDITURES AMOUNT BUDGET INTEREST EARNED ON INVESTMENTS Money Market Savings Interest 12 @ $150 1,800 OTHER RENTAL INCOME 1,800 3,000 DEPOSITS RECEIVED FOR SPACE, EVENT CANCELLED Events cancelled with non - refundable deposits paid 12 @ $250 ADVERTISING KIOSK INCOME 3,000 REVENUE GENERATED FROM ADVERTISING SALES OF NEW KIOSK SYSTEM Advertising contracts 20 @ $400 /ea 8,000 MISCELLAENEAOUS INCOME 8,000 MISC Pepsi Sponsorship Pepsi Vending Machine Commissions State Sales Tax Vendor's Fee 3,000 1,200 1,500 OTHER Marriott Equipment Rental 12 @ $125 Miscellaneous Landscaping paid by Marriott Revenue generated by Front Row Marketing contract 1,500 100 3,800 9,600 FINANCE /COLLLECTIONS FEES 20,700 FINANCE FEES FOR OVERDUE A/R COLLECTION FEES FOR DELINQUENT ACCTS. 00 5 500 VENDOR'S FEE MONTHLY ALLOCATION RECEIVED FROM 1,100 1,362,900 CITY GENERATED BY SALES TAX Total Vendor's Fee (including debt service) SALES /PROPERTY TAX INCREMENT PROPERTY &SALES TAX GENERATED BY URA 1,362,900 PROJECT AREA (TIF) TIF to be used for Facility debt 212,000 TOTAL OTHER INCOME 212,000 $1,609,500 URA BUILDING EXPENSES 5,300 0 5,300 PROFESS IONAUCONTRACTUAL FEES 109,600 0 109,600 PARKING /BLDG IMPROVEMENTS 125,000 0 125,000 LAND LEASE 3,600 0 3,600 DEBT SERVICE 740,000 0 740,000 PDF INTEREST /LEASE 129,200 0 129,200 RES. #8513 REPAYMENT 82,800 0 82,800 CAPITAL OUTLAY 28,100 0 28,100 MANAGEMENT FEE 67,200 0 67,200 TOTAL OTHER EXPENSES $1,290,800 $0 $1,290,800 PUEBLO CONVENTION CENTER OTHER EXPENSES BUDGET - FY2002 ACCOUNT DESCRIPTION Expenses approved by URA Board for URA ACCOUNT TITLE URA BOARD APPROVED EXPENSES MAS -90 ITEMIZED EXPENDITURES Travel AMOUNT BUDGET plan/ expenses to Boise Idaho ( expansion 8 Members @ $625 (2 nights /3 days) 5,000 Plagues for facility art work 11 @ 27.27 ea 300 PROFESSIONAL /CONTRACTUAL FEES Professional fees for architects, engineers, etc TOTAL 5,300 related to expansion of Center Estimated professional fees associated with URA plan for expansion of area and feasibility studies 100,000 Front Row Marketing Plan 9,600 PARKING /BLDG IMPROVEMENTS Costs associated with expanding and improving TOTAL 109,600 20,000 parking lots in surrounding area Paving of Lot - BY VECTRA BANK Paving of Lot - Richmond /Santa F 40,000 Bldg Demolition (Carried over from 2001) 40,000 Additional Lighting at Main Entrance 15,000 Two Additional Sixty amp 230 Volt outlets Ballroom Lease of Ferguson Lot 12 @ $300 /mo 10,000 125,000 LAND LEASE MONTHLY LEASE FOR ADDITIONAL PARKING 3,600 DEBT SERVICE T OTAL 3,600 740,000 DEBT SERVICE DUE FROM VENDOR'S FEE Payment for debt service of URA bonds PDF INTEREST /LEASE Principal and interest payment to PDF for FF &E TOTAI 740,000 purchased prior to opening Principal due to PDF using TIF 108,000 Interest due to PDF using TIF 21,200 RES #8513 REPAYMENT LOAN FROM CITY FOR IMPROVEMENTS TOTAL 129,200 Annual payment to City using TIF 82,800 TOTAL 82,800 NEW EQUIPMENT (OVER $500) TO BE CAPITAL OUTLAY DEPRECIATED AT YEAR END FODD & BEVERAGE Hot Box x2 3,500 Tilt Skillet from Marriott 1,000 Full Tilt Skillet (with Steamer capabilities) 6,000 OPERATIONS Two Partition Walls 2,600 Follow /Spot Lights 3,500 LCD Projector - 1 6,000 CD Piano Player 4,000 OFFICE Computer System for Acct. Asst. 1,500 MANAGEMENT FEE TO , A 28,100 FIXED - Monthly Fee based on contract 0 Based on 3.2% cpi increase $5600 x 12 67,200 INCENTIVE FEE BASED ON CONTRACT TOTAL OTHER EXPENSES TOTAL 67,200 $1,290,800 ' EVENTS BUDGET 0 0 375 113 0 125 0 44 0 0 36 0 0 0 0 0 0 0 0 250 72 0 94 0 625 '600 44 515 0 0 0 0 2,200 0 4,400 ° ° 313 15 0 188 0 188 1,100 81 62 U ° ° ° 60 0 ° 0 813 234 0 250 0 169 300 22 173 0 ° 0 0 0 1,960 0 0 400 120 0 219 0 125 250 19 50 ° 0 0 0 0 0 0 0 1,125 338 0 156 0 219 500 15 191 0 0 0 0 0 0 2,544 0 0 18,750 900 0 3,469 0 4,625 8,000 592 2,632 0 0 0 0 600 0 FISCAL YEAR ENDING 2002 2,006 1,183 39,567 NET EFFECTIVE RENTAL INCOME 519 PM $5,200 ($6) 52,840 $217 $2,756 $33,433 CONVENTIONS 16 54% 0% EVENT ADAD FY 2002 Apr 22 -24 COLO JUD TECH FY 2002 May 21.23 CO CATTLEMEN FY 2002 June 10.12 50 DANCE FY 2002 Jun 14.16 CO DIST UPCI FY 2002 Aug 8.9 AA STATE „ CONV FY 2002 Sep 13.15 MINOR CONV FY 2002 NUMBER OF EVENT DAYS GENERAL ATTENDANCE 3 775 3 500 3 600 2 1,000 2 500 3 2,250 101 15,150 SPACE RENTAL REVENUE OTHER REVENUE 0 700 5,600 4,000 0 2,000 4,800 0 600 800 5,000 300 55,000 18,000 TOTAL REVENUE 700 9,600 2,000 4,800 1,400 5,300 73,000 GROSS RENT EXPENSE REIMBURSEMENTS BUILDING PROCEEDS 8 692 700 5,200 4,400 9,600 (6) 2,006 2,000 2,840 1,960 4,800 217 1,183 1,400 2,756 2,544 5,300 33,433 39,567 73,000 GROSS RENTAL PERCENTAGE 1 % 5 0i 59% 16/ 5 2/ 46/ BUILDING EXPENSES ADVERTISING PRODUCTION EVENT LABOR /SET- UP/TEAR DOWN -PT EVENT LABOR - PART TIME PR TAXES SECURITY TEMPORARY LABOR SERVICES EVENT TICKET SELLERS /TAKERS UTILITIES EQUIPMENT RENTAL EQUIPMENT RENTAL SALES TAX SUPPLIES (LINENS /LAUNDRY) CLEANING -TRASH REMOVAL INSURANCE DAMAGES MISCELLANEOUS TELECOMMUNICATIONS CREDIT CARD FEES TOTAL BUILDING CHARGES 0 0 375 113 0 125 0 44 0 0 36 0 0 0 0 0 0 0 0 250 72 0 94 0 625 '600 44 515 0 0 0 0 2,200 0 4,400 ° ° 313 15 0 188 0 188 1,100 81 62 U ° ° ° 60 0 ° 0 813 234 0 250 0 169 300 22 173 0 ° 0 0 0 1,960 0 0 400 120 0 219 0 125 250 19 50 ° 0 0 0 0 0 0 0 1,125 338 0 156 0 219 500 15 191 0 0 0 0 0 0 2,544 0 0 18,750 900 0 3,469 0 4,625 8,000 592 2,632 0 0 0 0 600 0 692 2,006 1,183 39,567 NET EFFECTIVE RENTAL INCOME $8 $5,200 ($6) 52,840 $217 $2,756 $33,433 NET EFFECTIVE RENTAL PERCENTAGE 16 54% 0% 59% 16% 52/ 46/ GROSS SERVICE INCOME $692 $4,400 $2,006 $1,960 $1,183 $2,544 $39,567 LESS EXPENSES: (480) (1,395) (9,393) NET COMMISSIONS 7,085 3,103 1,590 ADVERTISING PRODUCTION EVENT LABORIS ET -U P/TEAR DOWN -PT EVENT LABOR - PART TIME PR TAXES SECURITY TEMPORARY LABOR SERVICES EVENT TICKET SELLERSITAKERS UTILITIES EQUIPMENT RENTAL EQUIPMENT RENTAL SALES TAX SUPPLIES (LINENS /LAUNDRY) CLEANING -TRASH REMOVAL INSURANCE DAMAGES MISCELLANEOUS TELECOMMUNICATIONS CREDIT CARD FEES TOTAL EXPENSES 0 0 300 15 0 100 0 35 0 0 35 0 0 0 0 0 0 0 0 200 60 0 75 0 500 300 22 500 0 0 0 0 1,750 0 3,407 ° ° 250 13 0 150 0 150 175 13 60 0 0 0 0 60 0 650 195 0 200 0 135 0 0 168 0 0 0 0 0 0 320 16 0 175 0 100 0 0 49 0 0 0 0 0 0 660 900 338 0 125 0 175 0 0 186 0 0 0 0 0 0 15,000 750 0 2,775 0 3,700 500 37 2,555 0 0 0 0 400 0 25,717 485 870 1,348 1,723 _ NET SERVICE (INCOME) /LOSS DIRECT EVENT INCOME /(LOSS) CONCESSION COMMISSIONS: PER CAPITA GROSS SALES COGS (30% less 26 for ST) LABOR 386 SALES TAX EXPENSE 46 OTHER COSTS 56 NET COMMISSIONS CATERING COMMISSIONS 2( 07) _ (993) (1,135) (612) (523) (821) (13,850 $215 $6,193 $1,130 $3,452 $740 $3,577 $47,283 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 ° ° ° 0 0 0 0 ° ° 0 0 0 0 0 0 0 0 0 0 0 0 ° ° ° 0 0 0 0 ° ° 0 0 0 0 0 0 ° ° 0 0 0 0 PER CAPITA $34.50 $20.35 $10.00 $11.25 $24.00 $15.50 $15.50 GROSS SALES COGS (306 less 2% for ST) 26,738 (7,487) 10,175 6,000 11,250 12,000 34,875 234,825 LABOR 35.26 (10,160) (2,849) (3,867) (1,680) (2,280) (3,150) (3,360) (9,765) (65,751) SALES TAX EXPENSE 4% (1,070) (240) (4,275) (4,560) (13,253) (89,234) EQUIPMENT /LINENS 3.56 (936) (356) (210) (450) (480) (1,395) (9,393) NET COMMISSIONS 7,085 3,103 1,590 (394) 2,981 (420) 3,180 (1,221) (8,219) 9,242 62.229 ELECTRICAL/TELECOMMUNICATIONS GROSS SALES 150 0 0 0 ELECTRICAL EXPENSES (125) 0 0 0 150 1,000 TELECOMMUNICATIONS EXPENSES 0 0 0 0 0 (100) (200) N ET SALES 25 0 0 0 0 _ (300) 0 0 0 50 500 AUDIONISUAL GROSS SALES AN EXPENSES NET SALES TOTAL ANCILLARY INCOME ° ° D 0 0 225 0 0 0 0 0 ° ° 0 (188) 0 0 0 0 37 0 EV OPE INC $7, 325 $ 9 , 296 $2 ,720 $6, 433 $3 ,920 $ 12,906 $110,012 Page 1 EVENTS BUDGET FISCAL YEAR ENDI 2002 E VENT NUMBER OF EVENT DAYS GENERAL ATTENDANCE SPACE RENTAL REVENUE OTHER REVENUE TOTAL REVENUE GROSS RENT EXPENSE REIMBURSEMENTS BUILDING PROCEEDS GROSS RENTAL PERCENTAGE BUILDING EXPENSES ADVERTISING PRODUCTION EVENT LABOR /SET -UP /TEAR DOWN -PT EVENT LABOR - PART TIME PR TAXES SECURITY TEMPORARY LABOR SERVICES EVENT TICKET SELLERS/TAKERS UTILITIES EQUIPMENT RENTAL EQUIPMENT RENTAL SALES TAX SUPPLIES (LINENS /LAUNDRY) CLEANING -TRASH REMOVAL INSURANCE DAMAGES MISCELLANEOUS TELECOMMUNICATIONS CREDIT CARD FEES TOTAL BUILDING CHARGES NET EFFECTIVE RENTAL INCOME NET EFFECTIVE RENTAL PERCENTAGE GROSS SERVICE INCOME (LESS EXPENSES: ADVERTISING PRODUCTION EVENT LABOR /SET- UP/TEAR DOWN -PT EVENT LABOR - PART TIME PR TAXES SECURITY TEMPORARY LABOR SERVICES EVENT TICKET SELLERS/TAKERS UTILITIES EQUIPMENT RENTAL EQUIPMENT RENTAL SALES TAX SUPPLIES (LINENS /LAUNDRY) CLEANING -TRASH REMOVAL INSURANCE DAMAGES MISCELLANEOUS TELECOMMUNICATIONS CREDIT CARD FEES TOTALEXPENSES NET SERVICE (INCOME) /LOSS DIRECT EVENT INCOME /(LOSS) CONCESSION COMMISSIONS: PER CAPITA GROSS SALES COGS (30% less 2% for ST) LABOR 38% SALES TAX EXPENSE 4% OTHER COSTS 5% NET COMMISSIONS CATERING COMMISSIONS PER CAPITA GROSS SALES COGS (30% less 2% for ST) LABOR 35.2% SALES TAX EXPENSE 4% EQUIPMENT /LINENS 3.5% NET COMMISSIONS ELECTRICAL/TELECOMMUNICATIONS MEETINGS /SEM FY 2002 BANQUETS FY 2002 MISCELLANEOUS FY 2002 TOTALS 0 3,000 0 FY 2002 325 132 25 632 14,000 25,000 7,500 76,435 60,000 20,000 23,000 178,200 20,800 38,000 4,000 202,700 80,800 58,000 27,000 380,900 875 3,100 625 52,527 12,623 21,830 154,406 28,273 45,377 5,170 226,494 80,800 58,000 27,000 380,900 65% 22% 81% 41 0 0 0 34,000 0 3,000 0 11,600 5,000 9,625 1,750 43,213 250 481 88 2,847 0 3,600 0 4,008 2,125 1,500 875 10,425 0 0 0 121 875 3,100 625 11,813 15,000 20,000 800 60,300 1,110 1,480 59 4,440 2,913 2,091 973 13,218 0 500 0 1,100 0 0 0 0 0 0 0 0 1,000 0 0 25,800 0 0 0 2,860 0 0 0 750 28,273 45,377 5,170 226,494 $52,527 $12,623 $21,830 $154,406 65% 22% 81% 41 $28,273 $45,377 $5,170 $226,494 0 0 0 34,000 0 2,500 0 11,100 4,000 7,700 1,400 34,570 200 2,300 70 4,149 0 3,000 0 3,340 1,700 1,200 700 8,340 0 0 0 197 700 2,480 500 9,450 100 500 0 2,075 7 37 0 154 2,828 2,030 945 13,496 0 500 0 1,030 0 0 0 0 0 0 0 0 800 0 0 25,550 0 0 0 2,210 0 0 0 750 10,335 22,247 3,615 150,410 (17,937) (23,130) (1,555) 176,084) $70,465 $35,753 $23,385 $230,490 $0.00 $0.00 $0.00 $0.00 0 0 0 19,360 0 0 0 (5,421) 0 0 0 (7,357) 0 0 0 (774) 0 0 0 (968) 0 0 0 4,840 $6.25 $24.00 $0.00 $0.00 87,500 600,000 0 1,044,913 (24,500) (168,000) 0 (292,576) (33,250) (228,000) 0 (397,067) (3,500) (24,000) 0 (41,390) (3,063) (21,000) 0 (36.572) 23,188 159,000 0 277,309 GROSS SALES ELECTRICAL EXPENSES TELECOMMUNICATIONS EXPENSES NET SALES 0 0 0 0 0 0 0 0 0 0 0 0 5,850 (3,792) (510) 1,548 AUDIONISUAL GROSS SALES AN EXPENSES NETSALES 0 0 0 0 0 0 0 0 _ 0 725 (588) 137 TOTAL ANCILLARY INCOME 23,188 159,000 0 283,834 EVENT OPERATING INCOME i $93 652 $194,753 $23,385 $514,324 Page 3 EVENTS BUDGET $2.00 $0.00 $1.50 $3.25 $2.25 $3.50 0 FISCAL YEAR ENDING 2002 0 2,400 3,900 2,250 7,210 0 (1,008) 0 (672) TRADE SHOWS (630 (2,019) CONSUMER SHOWS (1,368) 0 (912) (1,482) (855) (2,740) 0 (144) 0 EYELET CO OUTFITTERS SR LIFE FEST PUEBLO CHAM EX MINOR TRADE GOLF SHOW BREW FEST OTHER (195) FY 2002 FY 2002 FY 2002 FY 2002 FY 2002 F FY 2002 FY 2002 563 FEB 7.9 $28.50 $0.00 $5.50 MAY JUL $0.00 NUMBER OF EVENT DAYS 3 3 1 8 3 1 14 GENERAL ATTENDANCE 300 1,800 1,200 1,600 1,200 1,000 2,060 SPACE RENTAL REVENUE 0 4,200 0 0 0 0 0 OTHER REVENUE 2,000 2,600 9,300 17,200 24,500 10,000 48,500 TOTAL REVENUE 2,000 6 9,300 17,200 24,500 10,000 48,500 0 0 0 GROSS RENT 1,170 2,880 661 10,695 370 1,653 5,548 EXPENSE REIMBURSEMENTS 830 3,920 8,639 6,505 24,130 8,347 42,952 BUILDING PROCEEDS 2,000 6,800 9,300 17,200 24,500 10,000 48,500 GROSS RENTAL PERCENTAGE 59% 42% 7% 6 2% 2% 17% 11% BUILDING EXPENSES ADVERTISING 0 0 0 0 10,000 5,000 19,000 PRODUCTION 0 0 0 0 8,500 0 100 EVENT LABOR /SET- UP/TEAR DOWN -PT 188 250 438 938 375 313 2,313 EVENT LABOR - PART TIME PR TAXES 9 12 21 45 19 16 116 SECURITY 0 0 0 0 0 288 120 TEMPORARY LABOR SERVICES 150 63 100 481 281 100 250 EVENT TICKET SELLERSITAKERS 0 0 21 0 0 0 100 UTILITIES 250 188 106 313 125 63 175 EQUIPMENT RENTAL 150 . 2,600 7,000 3,500 400 100 0 EQUIPMENT RENTAL SALES TAX 11 192 518 259 30 7 0 SUPPLIES ( LINENSlLAUNDRY) 72 245 335 620 200 361 1,748 CLEANING -TRASH REMOVAL 0 120 100 100 50 50 180 INSURANCE 0 0 0 0 1 0 0 DAMAGES 0 0 0 0 0 0 0 MISCELLANEOUS 0 250 0 250 4,000 2,000 18,300 TELECOMMUNICATIONS 0 0 0 0 0 0 0 CREDIT CARD FEES 0 0 0 0 150 50 550 TOTAL BUILDING CHARGES 830 3,920 8,639 6,505 24,130 8,347 42,952 NET EFFECTIVE RENTAL INCOME 21,170 (2,880 2661 510,695 5370 51,653 (5,548 NET EFFECTIVE RENTAL PERCENTAGE 59% 42% 7% 62% 2% 17% 11% GROSS SERVICE INCOME $830 $3,920 $8,639 $6,505 $24,130 $8,347 $42,952 LESS EXPENSES: ADVERTISING 0 0 0 0 10,000 5,000 19,000 PRODUCTION 0 0 0 0 8,500 0 100 EVENT LABORISET- UPITEAR DOWN -PT 150 200 350 750 300 250 1,850 EVENT LABOR - PART TIME PR TAXES 8 10 18 38 15 13 93 SECURITY 0 0 0 0 0 240 100 TEMPORARY LABOR SERVICES 120 50 80 385 225 80 200 EVENT TICKET SELLERS/TAKERS 0 0 17 0 0 0 160 UTILITIES 200 150 85 250 100 50 140 EQUIPMENT RENTAL 0 0 100 0 400 0 0 EQUIPMENT RENTAL SALES TAX 0 0 7 0 30 0 0 SUPPLIES (LINENS/LAUNDRY) 70 238 326 602 858 350 1,698 CLEANING -TRASH REMOVAL 0 120 80 50 50 50 180 INSURANCE 0 0 0 0 0 0 0 DAMAGES 0 0 0 0 0 0 0 MISCELLANEOUS 0 200 0 250 4,000 2,000 18,300 TELECOMMUNICATIONS 0 0 0 0 0 0 0 CREDIT CARD FEES 0 0 0 0 150 50 550 TOTAL EXPENSES 548 968 1,062 2,325 24,627 8,083 42,390 NET SERVICE (INCOME) /LOSS (282) (2,952) (7,577) (4,181) 498 (264) (562) DIRECT EVENT INCOME /(LOSS) $1,453 $5,832 $8,238 $14,876 (f 127) 51,918 $6,110 CONCESSION COMMISSIONS: PER CAPITA GROSS SALES COGS (30% less 2% for ST) LABOR 38% SALES TAX EXPENSE 4% OTHER COSTS 5% NET COMMISSIONS CATERING COMMISSIONS PER CAPITA GROSS SALES COGS (30% less 2% for ST) LABOR 35.2% SALES TAX EXPENSE 4% EQUIPMENTILINENS 3.5% NET COMMISSIONS ELECTRICALITELECOMMUNICATIONS $0.00 $2.00 $0.00 $1.50 $3.25 $2.25 $3.50 0 3,600 0 2,400 3,900 2,250 7,210 0 (1,008) 0 (672) (1,092) (630 (2,019) 0 (1,368) 0 (912) (1,482) (855) (2,740) 0 (144) 0 (96) (156) (90) (288) 0 (180) 0 (120) (195) (113) (361) 0 900 0 600 975 563 1,803 $28.50 $0.00 $5.50 $4.00 $0.00 $0.00 $0.00 8,550 0 6,600 6,400 0 0 0 (2,394) 0 (1,848) (1,792) 0 0 0 (3,249) 0 (2,508) (2,432) 0 0 0 (342) 0 (264) (256) 0 0 0 (299) 0 (231) (224) 0 0 0 2,266 0 1,749 1,696 0 0 0 GROSS SALES 150 300 3,500 600 0 0 0 ELECTRICAL EXPENSES (50) (250) (2,917) (150) 0 0 0 TELECOMMUNICATIONS EXPENSES (10) 0 0 (200) 0 0 0 NET SALES 90 50 583 250 0 0 0 AUDIONISUAL GROSS SALES 0 0 0 500 0 0 0 AN EXPENSES 0 0 0 (400) 0 0 0 NET SALES 0 0 0 100 0 0 0 TOTAL ANCILLARY INCOME 2,356 950 2,332 2,646 975 563 1,803 EV ENT OPERATI I NCOME 1 $3,808 $6, 782 $10,570 $17,522 $848 $2,480 $7,913 Page 2 320 Central Main St. Pueblo, CO 81003 719.542.1100 TF L 719.583.9351 FAX MEMORANDUM To: Tony Berumen From: Larry Ambrose and Mary Lou Henson Re: 2002 Operations and Maintenance Budget for the Pueblo Convention Center CC: Mich Sauers On behalf of Global Spectrum, I am pleased to provide a brief recap of our 2001 operations and provide you with our 2002 budget for the Pueblo Convention Center. Although revenues remained relatively flat in the year 2001, Global Spectrum made possible a smooth transition to new management, maintained a superior level of service and has laid the foundation for a year of considerable growth in 2002. The end 2001 marks the Pueblo Convention Center's fourth year of operation. Based on surveys filled out by clients and reports from the community of Pueblo it is fair to say that the service and quality of food provided has continued to set exemplary levels. Since 1997, the Pueblo Convention Center has continued to build a statewide reputation as Southern Colorado's premier meeting place. The Pueblo Convention Center hosted the largest convention ever held in Pueblo, Crime Stopper's International. Visitors from around the country and abroad were able to take advantage of the annual Pueblo Chile and Frijole Festival and were thoroughly impressed with the hospitality they enjoyed during their five day visit. It is safe to assume that hundreds of thousands of dollars were pumped into the local economy by virtue of this international meeting. Our annual Art Show also benefited from the Crime Stoppers meeting. Sales commissions are expected to reach an all time high of $7,000. During the 2001 fiscal year we completed the production of an new and quite attractive promotional materials. These include a new video, brochure and Menu. They are being effectively utilized for a variety of marketing and promotional purposes. Revenue from operations for the fiscal year 2001 was under the original budget estimate made in the year 2000 by approximately 10 %. Budget revenue forecasts were made aggressively in anticipation of a continuing strong economy and before the impacts of the events of September 11. At the time forecasts were made, event bookings were at an all time high of $800,000. The budget was predicated on an almost equal of amount of business to be booked during the year 2001. Cancellations, such as two large consumer shows and key large events and smaller than anticipated attendance at many events in all categories contributed to the budget revenue shortfall. There was progress on the expense side of operations as well. For example, during the year we removed the facility's six pay telephones and replaced them with courtesy phones and computer modem ports. This will result in savings of more than $4, 000 annually. For 2002 we are projecting a $1.4 million in total revenues. This represents a 10% increase; $310,000 more than the actual 2001 revenues. It might be anticipated that in light of a slow economy, reduced travel and economic and social uncertainty, revenue for the year 2002 would remain about the same or be less than what was experienced in 2001. However, analysis of contracted and tentative events (Pre- Booked) for the year 2002 as of December 2001, show that the amount of estimated revenue ($1, 127,478) is approximately $310,000 more than December 2000 ($793,667). The method utilized to estimate Pre - Booked event revenue, as was done for the 2001 budget, the average revenue per person per event day for five different categories of events were multiplied by the number event days currently contracted or tentatively booked for the year 2002. The averages were calculated based on actual revenues and attendance for the first nine months of 2001. The categories of events and averages are as follows: Banquets /Receptions Conventions Meetings /Seminars Consumer Shows /Misc. Trade Shows $23.29 per person $23.79 per person/event day $12.35 per person/event day $ 5.24 per person/event day $ 6.70 per person/event day Figures include revenue from food and beverage, equipment rental and room rents. In order to arrive at a conservative yet realistic budget revenue figure for all categories the discounted estimates were increased by the amount of actual additional revenue realized during the 2001 fiscal year. This amount might be also viewed as actual "walk - in" business. The final estimate of $1,451,748 is approximately 10% greater than actual 2001 revenues. There are a few expense items which I would call to your attention in the 2001 budget. We have increased the part time administrative assistant to a full time administrative assistant position in the Executive budget. This person will be utilized to provide support to the General and Assistant General Manager, Event Services, Sales, Human Services, Finance and Marketing staff. It should be noted that we have provided for the purchase of 100 fancy place settings as part of the food and beverage operating budget. Having this dinnerware available will further enhance the quality of food and beverage service. However, because these items cannot be depreciated, they are being considered and operational cost rather than a capital expenditure. Other expenses include $1,200 for a DSL (high speed internet) Line and $1,980 for a new ISP in order to access the new Comcast Spectacor accounting system of which we will become a part. Front Row Marketing is a company which is partially owned by Global Spectrum. They specialize in generating revenue for venues by the sales of marketing and advertising rights. We have proposed to contract with them for $9,600 to provide their services for one year to the Pueblo Convention Center. They guarantee to generate at least this amount of income or they will refund any difference. We have therefore, showed this expense also as an income figure under other income. There are several long -term investment expenditures of note. We have budgeted $300 per month for the lease of the Ferguson property to the east of Mechanic Street. We have also carried over the $40,000 budgeted for demolition of the Latin Village building and allocated an additional $60,000 for paving of parking lots adjacent to the Convention Center. Under Capital Outlay we have budgeted for a device to make our baby grand piano into a player piano. The piano should become more widely used and quite a popular rental item for a wide variety of events. We will be purchasing a $3,500 "follow" spot light in order to provide for a more professional lighting scheme for events where stage lighting is needed We will continue the tradition of quality customer service, competitive pricing and aggressive marketing which have become the elements of success for the Pueblo Convention Center. We wish to thank the Pueblo Urban Renewal Authority, The City and County of Pueblo and most of all the citizens of Pueblo for the opportunity given to us. Our experienced and dedicated Global Spectrum staff will continue to provide systematic and professional service in meeting the expectations of this facility. Larry Ambrose, General Manager RESOLUTION NO. 2001 -12 -2 A RESOLUTION APPROVING THE FISCAL YEAR 2002 PUEBLO URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO BUDGET INCLUDING THE PUEBLO CONVENTION CENTER OPERATION AND MAINTENANCE BUDGET WHEREAS, the Urban Renewal Authority of Pueblo, Colorado (the Authority), is carrying out the Urban Renewal Plan (the "Plan" for the areas ( "Project Area ") included in the Phase One Urban Renewal Project for Downtown Pueblo (the "Project "); and WHEREAS, pursuant to its bond indenture, the Authority must adopt a budget prior to establishing a Operations and Maintenance Fund; and WHEREAS, in furtherance of the plan and the Project, it is necessary that the Authority adopt a budget: NOW THEREFORE BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO: SECTION I. The Authority hereby adopts the attached Operating and Maintenance Budget for the fiscal year ending December 31, 2002, and the Secretary is directed to monitor the operating budget during the accounting period the budget is adopted and submit regular reports to the Authority. ADOPTED this 11 th day of December 2001. URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO Chairman of the Board of Commissioners ATTEST: Secretary