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Home My WebLink About10288RESOLUTION NO. 10288 A RESOLUTION APPROVING THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO'S FISCAL YEAR 2005 CONVENTION CENTER AND URBAN RENEWAL AUTHORITY OPERATING BUDGET BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: The Urban Renewal Authority of Pueblo, Colorado's ( "Authority ") fiscal year 2005 Convention Center and Urban Renewal Authority Operating Budget ( "Budget "), a copy of which is attached hereto, is hereby approved; provided, however, that Excess Proceeds and Total Excess Proceeds shown on the Budget shall not be committed, encumbered, or expended by the Authority other than to invest or reinvest same without prior approval of the City Council by Resolution. INTRODUCED December 13, 2004 &0, *16288' a C) t� Background Paper for Proposed RESOLUTION AGENDA ITEM a6 DATE: DEPARTMENT: TITLE December 13, 2004 URBAN RENEWAL AUTHORITY A RESOLUTION APPROVING THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO'S FISCAL YEAR 2005 CONVENTION CENTER AND URBAN RENEWAL AUTHORITY OPERATING BUDGET ISSUE Approval of the FY 2005 Urban Renewal Authority of Pueblo, Colorado ( "URA") Convention Center and Urban Renewal Authority Operating Budget ( "URA Budget "). RECOMMENDATION Approve the URA Budget previously adopted by URA BACKGROUND The URA is carrying out the Pueblo Expanded Urban Renewal Plan for Downtown Pueblo, and pursuant to its bond indenture, the City Council must approve the URA Budget. The Resolution approves the URA Budget. FINANCIAL IMPACT The URA Fiscal Year 2005 Budget is attached. PUEBLO CONVENTION CENTER FY2005 BUDGET SUMMARY The FY2005 budget has been developed in correlation with the Annual Operating Plan. The major components of the plan are structured and tied directly to each department with links to provide maximum efficiency and effectiveness. The theme of sustaining and increasing revenue, coupled with enhanced customer service and satisfaction are woven throughout the plan. Increased sales are paramount to maintaining the revenue stream. Quality food and beverage service, with reasonable costs, is essential to business retention. Exceptional customer service is vital to our success in all facets in of the operation, reputation and generating a resilient client base. The facets of Sales, Marketing and Event Services are driven by the goal of increasing sales by 5 %, improving customer service and adopting a pro -active approach to event coordination in conjunction with dissemination of accurate, timely information. The Food and Beverage elements are comprised of maintaining costs of goods sold, enhancing quality of service and implementation of key training programs. Operations essentials include maintaining operational costs, maximizing efficiency and attention to training and safety. While timely and accurately reporting procedures tend to be synonymous with finance and accounting, delineation of objectives is imperative to identifying timelines, receipt and processing of information. The core Executive initiatives emphasize maximum utilization of resources and partnership opportunities for revenue enhancement, increased efficiency and effectiveness in all aspects of operations, and target peak performance through staff development, job enrichment, direction and team building. Revenues The number of events is projected at 578, a slight decrease from FY2004. Overall revenue is projected at $1,443,806, a decrease from the FY2004 budget. The decrease in projected revenue is a realistic figure based on actual data for the current year as well as the last quarter of FY2003. Actual data for the current fiscal year reflects fewer events and those events have exhibited a trend of downsizing with regard to attendance, correlating with reduced F&B revenues. Room Rental revenue is projected at $277,720, an increase of $43,892. Food and Beverage sales are projected at $1,004,975, a decrease of $64,988 from FY 2004. This represents the trend of overall downsizing of events, some of which are also eliminating food service. The majority of revenue is derived from this area of operation. Other Revenue, which encompasses AN equipment, electrical connections, labor, security, and miscellaneous, is projected to decrease to $137,991. Operating Expenses Salaries & Benefits is projected at $512,302, a decrease of $21,248, due to reorganization and streamlining of duties and positions. . Utilities are projected at $104,352, a decrease of $15,886, based on actual figures for FY2004. Temporary and Part Time Labor is projected at $301,493, a decrease of $51,595 in conjunction with reduced revenue projections. Building Maintenance and Repairs are projected at $34,345, a slight decrease of $7,222, attributed to pro-active and preventative maintenance approach to maintenance and repair issues. Linens/Laundry expense is projected at 41,840, a reduction of $10,289 based on actual costs. Savings realized due to improvements in processing and monitoring linen uses. Advertising & Promotions are projected at $31,440, a slight increase, targeted at strengthening and enhancing marketing and promotional opportunities. Telephone Expenses are projected at $8,160, a slight decrease due to reductions negotiated in telecommunication categories. Insurance Expense is projected at $77,058, a decrease of $32,853 due to reclassification for workers compensation status and facility evaluations resulting in lower premiums based. Professional Services are being projected to remain the same for FY 2005. Capital Outlay is projected at $160,705, an increase of $85, 605 due to expected replacement of equipment and upgrade of electronic message center. URBAN RENEWAL AUTHORITY 2005 BUDGET SUMMARY Other Income for the Urban Renewal Authority for Property and Sales Tax increment will not be increased. The vendor's fee will increase to $1,417,944 compared to $1,383,360 for the year. This information was received from Bob Hain at the City of Pueblo. Urban Renewal Authority Expenses are projected to decrease by $98,657 for FY 2005. This is primarily due to the elimination of the PDF Equipment lease purchase, which final payment is scheduled for December 2004. Page 2 of 2 URBAN RENEWAL AUTHORITY PUEBLO COLORADO PROPOSED CONVENTION CENTER AND URA OPERATING BUDGET 2005 Budget 2oo4 Acf/pro) 2003 Actual CONVENTION CENTER OPERATION REVENUE SALES AND OPERATIONS REVENUE Room Rental $277,720 $188,848 $204,734 Other (Eq Rent,labor,Utilities,Telecomm Connection, Insurance, Security $137,991 $123,920 $169,718 Food and Beverage $1,004,975 $791,955 $1,023,036 OTHER REVENUE Rental 3,000 $9,000 $6,000 Advertising 2,300 $3,450 $1,520 Sponsorships, Vending, other 17,820 $19,814 $12,803 TOTAL OPERATING REVENUE $1,443,806 $1,136,987 $1,417,812 OPERATING EXPENSES EVENT EXPENSES F &B Product Expense 281,393 221,747 340,826 F &B PT/Temp Labor Expense 301,493 282,470 389,399 F &B Salaries 140,860 129,024 171,052 Salaries P/R Taxes Alloc to Events(1) (107,016) (93,259) (75,633) Employee Benefits 46,793 52,474 45,678 F &B Other Event Expense 30,149 7,490 15,598 EVENT EXPENSE - Advertising/Production 0 18,600 35,547 EVENT EXPENSE - Telecommunications 25,612 21,411 27,032 EVENT EXPENSE -Operations Labor 111,822 91,182 91,822 EVENT EXPENSE - Equipment(Linen Rental 23,306 19,896 51,325 EVENT EXPENSE - Other 690 9,624 3,326 TOTAL EVENT EXPENSES 855,103 760,660 1,095,972 INDIRECT EXPENSES Advertising 23,950 21,000 20,654 Bank Account Fees 1,500 105 99 Collections/Bad Debt Expense 1,000 200 749 Computer Expense 9,605 12,717 14,288 Direct Sales 6,470 1,922 1,919 Dues/Subscriptions 6,985 4,685 5,190 Employee Benefits 106,814 111,124 49,102 Employee Relations 13,846 5,061 4,180 Equipment - New 13,395 13,132 17,578 Equipment Lease Agreements 12,858 11,328 10,720 Equip/Bldg Maintenance Agreements 27,380 20,060 26,066 Equipment Rental 2,550 2,350 1,907 Insurance - WdBktg/Property 55,205 67,376 61,158 Licenses/Permits 2,196 2,086 2,275 Linens/Laundry 41,840 35,733 46,681 Linens/Laundry Alloc To Event Expenses(1) (42,911) (45,945) (39277) Maintenance/Cleaning Supplies 31,400 29,501 33,829 Meetings/Conventions/frainings 16,235 6,680 11,901 Offi Supplies 3,600 3,900 4,010 Payroll Taxes 43,184 41,408 31,144 Postage 3,100 3,120 3,357 Printing 5,060 6,300 4,390 Professional Fees (Accounting/Legal) 5,500 2,844 3,000 Promotional Materials 7,490 7,273 13,508 Repairs - Bldg/Equipment 34,345 30,497 21,679 Salaries - Administrative 371,442 328,223 380,814 Salaries/Pr Taxes Alloc To Event Expenses(1) (25,856) (12,212) (15,566) Telephone 25,780 30,306 27,616 Travel 7,134 11,808 6,072 Uniforms 12,846 11,461 16,964 Utilities 104,352 95,233 103,622 Utilities Alloc To Event Expenses(1) (25,562) (20,036) Q5A1o) TOTAL INDIRECT EXPENSES 902 ,731 839,240 844,602 TOTAL EVENT AND (OVERHEAD) INDIRECT EXPENSES 1,757,834 1,599,900 1,940,573 PROJECTED OPERATING DEFICIT (314,026) (462,913) (5¢2,761) Management Fee Prorated for Urban Renewal Exec Director"" Capital Outlay and Replacement Replacement Reserve Marketing for Pueblo Convention Center TOTAL OPERATING EXPENSES OPERATING INCOME (Loss) OTHER INCOME Vendor Fees Property and Sales Tax Increment " Investment Income TOTAL OTHER INCOME OTHER EXPENSES Debt Service on Series A and B Bonds(Vendor Fee) Bond Payment Series B(rIF Fee) PDF Payment URA Expenses(as listed under URA Uses of Funds) Management Incentive Fee(2) TOTAL OTHER EXPENSES NET PROCEEDS FROM CONVENTION CENTER OPERATION AND URBAN RENEWAL AUTHORITY URA BOARD USES OF FUNDS URA USE OF FUNDS Audit Fees Item Description 1 Travel expenses for URA Board Members 2 Executive Director*"' 3 URA City Planning Reimbrusement 4 URA Marketing 5 Special Event Sponsorship 6 Drawing of Expansion 7 Land Development 8 Audit Fees 9 URA Attorney Costs 10 Parking Structure Schematic Design 11 URA Project Area Plan 27,167 TOTAL USE OF FUNDS 70,844 69,792 67,764 25,000 15,000 0 160,705 90,019 27,167 50,000 0 3,190 17,000 5,000 0 2,081,383 1,779,711 2,038,694 ($637,577) (5642.724) ($15Z0,862) 1,417,944 1,383,360 1,364,576 303,570 303,570 347,863 123,311 117,311 114,091 $1,844,925 $1,804,241 $1,826,529 $632,000 $648,430 630,936 108,000 91,570 108,000 30,570 129,200 179,191 195,570 156,819 204,933 44,425 44,425 0 979,995 1,070,444 1,123,060 $227,252 $91,072 $82,586 18,000 8,786 19,160 100,000 62,670 10,000 0 8,000 5,000 1,330 10,000 10,000 25,424 83,262 30,570 0 4,000 9,420 10,181 15,000 23,605 11,495 11,914 50,000 29,504 $195,570 $156,819 $204,932 URA EXCESS PROCEEDS FOR PERIOD ENDING DECEMBER 2004" $227,252 $91,072 $82,586 ESTIMATED BEGINNING EXCESS PROCEEDS $1,224,406 1,133,334 $1,050,748 PROJECTED ENDING TOTAL EXCESS PROCEEDS' $1,451,658 $1,224,406 $1,133,334 " Total TIF revenue estimated at $303,570 of which $108,000 is budgeted for payment on the Series B Bond. The balance of $195,570 is directly available to the Board for Board activity. May also be budgeted upon Council Approval based on URA Recommendation The total Executive Director Salary is $125,000. $100,000 is coming out of TIF funds and $25,000 will come from the Vendor's Fee(Pueblo Convention Center operating funds). Accrued excess TIF and Vendors Fee since 1997 (1) A percentage of these expenses(salaries, utilities, etc) are allocated to event income to better reflect event income and for corporate purpc (2)The Management Incentive Fee is based on the contractual agreement between the Management Company and the Urban Renewal Autho This can be found in the contract under Article 10.4(Pay Incentive Fee). PROPOSED CONVENTION CENTER AND URA OPERATING BUDGET 2005 CONVENTION CENTER OPERATION REVENUES Sales and Operations Revenue $1,420,686 Other Revenue $ 146,431 Total Operating Revenue 1,567,117 OPERATING EXPENSES Event Expenses 855,103 Indirect Operating Expenses 998,575 Capital Outlay and Equipment Replacement 160,705 Replacement Reserves 50,000 Marketing for Pueblo Convention Center 17,000 Total Operating Expense OPERATING INCOME (Loss) OTHER (EXPENSES) AND INCOME Debt Service (740,000) PDF Equipment Lease Purchase 0 Management Incentive Fee (44,425) Vendor Fees 1,417,944 Property and Sales Tax Increment 108.000 TOTAL OTHER INCOME $ 1,567,117 2,081,383 (514,266) 741,519 Net Proceeds From Convention Center Operation 227,252 Urban Renewal Board Operations URA SOURCE OF FUNDS Property and Sales Tax Increment *• Net Proceeds from Convention Center Operation Total Funds Available $ 195,570 227,252 422,822 URA USES OF FUNDS Travel for URA Board Executive Director URA City Planning Reimbursement URA Marketing URA Special Event Sponsorship Mechanic Street Parking Lot Improvements Audit Fees URA Attorney Costs Total Uses of Funds URA Excess Proceeds for 2005 * ** Estimated Beginning Excess Proceeds 18,000 100,000 10,000 8,000 10,000 30,570 4,000 15,000 1,242,527 195,570 227,252 Projected Ending Total Excess Proceeds *•* 1,469,779 •* Assumes a portion of Debt Service is paid with Tax Increment Funds. * ** May also be budgeted upon Council Approval Based on URA Recommendation. PROJECTED CAPITAL REPAIRS AND MAINTENANCE A B C D E G H 1 October 9,2003 Number Life Span Replacement Cost Year Replaced Qty for 2005 Priority for 2005 (Building 8 Yrs.) 2 HV /AC SYSTEM 3 Main Chiller Components 4 Chiller Coolant Pumps 4 5-8 yrs 1,200 ea. 1 in 2002 1 1,200.00 5 Main Chiller Bearings 8 4 -6yrs 350.00 ea 2 in 2002 6 2,100.00 6 Heating Pump Motors 4 3 -5yrs. 900.00ea. 2 in 2000 7 Chiller Pump Motors 4 4 -6yrs 1000 .00ea NTD 1 1,000.00 8 Air Handlers 5 10-1 5y 800.00ea NTD 9 Air Handlers Bearings 40 4 -6 yrs 350.00 ea NTD 4 1,400.00 10 AHU Supply Motors 6 5 -7yrs 1400.00ea NTD 2 2,800.00 11 AHU Return Motors 6 5 -7yrs 800.00ea NTD 2 1,600.00 12 Water Flow Control Valves 26 4 -7yrs 350.00ea NTD 2 1,400.00 13 MAU Gas Exchange Units 2 15 -20 1500.00ea NTD 14 lExpansion Tanks 3 5 -7yrs 2900.00ea 1 in 2002 1 2,900.00 15 lExpansion Valve 2 4 -6yrs 950.00ea 1 in 2002 16 Compressor Core 7 -1 OyrE 5500.00ea 17 Evapora Coil 4 4 -6yrs 3850.00ea NTD 1 7,700.00 18 VAV Controller 26 5 -7 yrs 480.00ea NTD 1 960.00 19 Irrigation Controller 1 20 Back Flow Preventer 3 5 -7 yrs 450.00ea NTD 1 900.00 21 Heat Control Valve 10 5 -7yr 400.00ea NTD 1 800.00 22 IWATER HEATER SYSTEM 23 Water Heaters 75 gal 2 4 -6yrs $2,200.00 NTD 24 Water Heater 70 gal 2 4 -6yrs $2,200.00 NTD 1 2,200.00 25 Water Heater Valves 4 4 -6yrs 250.00ea NTD 4 1,000.00 26 27 ROOF 28 Roof Repair / Replace 1,000.00 29 30 ELECTRICAL 31 Ballast1040 wafts Ceiling 20 5 -7yrs 105.00ea 5 RTD 4 420.00 32 Ballast Parking Lot 7 54yrs 110.00ea NTD 2 220.00 33 BallastCeiling 50 wafts 17 5-7 yrs I 125.00ea 2 RTD 2 250.00 34 Ballast 175w Outside light 15 5-7 yrs 125.00ea NTD 6 750.00 35 Ballast 70w Outside nite lite 12 2 105.00ea 7 RTD 2 210.00 36 Ballast 50w Walkway 22 3-5 yrs .125.00 ea 18 RTD 3375.00 37 MARQUEE 38 Bulbs 3500 1 yr .75 ea 3700 RTD 700 0.00 39 Bulb Drive Card 15 2-4yrs 350.00ea 4 RTD 5 0.00 40 New Sign 43,000.00 41 DOORS 42 Door Closers 112 7 -1 Oyr 200.00ea NTD 2 400.00 43 Panic Bars 50 8 -1Oyr 1330.00ea 3 RTD 3 3,990.00 44 Garage Doors Repairs 7 15 -20 700 45 Dock Lifts 3 20+ yrs 5000 46 Move Entry Doors(unable to obtain quote) 47 Move Gate 1 6,000.00 481 DANCE FLOOR 204 15 -20 130.00ea NTD 11 1,430.00 49 50 FOOD /BEVERAGE AREA 51 Dishwasher 1 8 -1Oyr 15 -20K NTD 52 Dishwasher Maintenance 2000 1,000.00 53 Garbage Disposal 1 3 -5yrs 1000 NTD 1,000.00 54 Water Plus System 1 3 -5yrs 2000 NTD 2,000.00 55 Rinse Water Booster 1 3-5 yrs 1000 NTD PROJECTED CAPITAL REPAIRS AND MAINTENANCE A B C D E G H 1 October 9,2003 Number Life Span Replacement Cost Year Replaced Qty for 2005 Priority for 2005 (Building 8 Yrs.) 56 Oven Convection 2 8 -10yr 8500 NTD 57 Range / Ovens 6 15yrs 3000 NTD 3,000.00 58 Steamer 1 7 -10 r 7000 NTD 59 Deep Fryer 2 8 -10yr 2000.00ea NTD 60 Broiler [double] 2 8 -10yr 5000 NTD 1 2,000.00 61 Hood /Exhaust System 1 15 rs 30,000.00 NTD 62 Tilt Skillet 1 8 -10yr 2,500.00 NTD 63 Steam Kettle 1 8 -10 r 4,000.00 NTD TH SKILLET 64 Freezer 1 15 rs 4,000.00 NTD 65 Refrigerators 3 15yrs 3,000.00 NTD 66 Cooler 1 10yrs 4,000.00 NTD 67 Refrigerator free standing 1 10yrs 3,000.00 NTD 68 Mixer Large 1 15yrs 12,000.00 NTD 69 Mixer small 1 8 -10 r 3,000.00 NTD 70 Ice Maker 1 10yrs 4,000.00 NTD 71 Steam Table 5 holes 1 15yrs 12,000.00 NTD 72 Kitchen Ceiling Tile &Frame' 73 SECURITY 74 Security Cameras 0 11,000.00 75 CARPET 76 Grand Ballroom 16200 sq ft 6 -8 rs 60,000.00 77 Main Hallway 1100 sq ft 6 -8yrs 5,000.00 78 Bernstein Room 4000 sq ft 6 -8yrs 15,000.00 79 Office area 4000 sq ft 6 -8 rs 15,000.00 80 Meeting rooms 3000 sq ft 6 -8yrs 12,000.00 2,500.00 81 FURNITURE 82 Furniture 15,000.00 83 TILE REPAIR 84 Womens bathroom $3,200.00 85 861 Air Walls 87 Maintenance Contract $3,500.00 88 89 Heroes Plaza 90 Maintenance 1,500.00 1,500.00 0.00 91 92 Computers 3 5,000.00 93 Event Software 1 20,000.00 94 OUTSIDE BUILDING 95 Resurfacing So.Parking Lot 10yrs $82,000.00 96 Resurfacing East side Lot 10yrs $3,000.00 97 Resurfacing Hotel Area 10yrs $42,000.00 98 Rail Fence @ Dock Area 10 rs $2,000.00 99 Mud'acking 100 Repair Dock Brick Damage 4,500.00 101 Extend Bumper Guards 700.00 102 Awning West Entralnce 7,000.00 103 Rental 104 Lift 0.00 105 106 TOTAL $876,526.00 160,705.00 107 10/28/2004