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Grand River Center/Conference Center FY 2017 Budget Presentation Copyright 2014 City of Dubuque Public Hearings # 5. ITEM TITLE: Conference Center(Grand River Center) FY 2017 Budget Presentation SUMMARY: SUGGESTED DISPOSITION: ATTACHMENTS: Description Type Conference Center (Grand River Center) FY17 Supporting Documentation Recommended Budget Conference Center 125- This page intentionally left blank. -126- GRAND RIVER CONFERENCE CENTER %Change FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 from Adopted Budget Highights Actual Adopted Amended Recomm'd FY 2015/16 Supplies and Services 293,789 291,500 291,500 383,301 31.5% Total 293,789 291,500 291,500 383,301 31.5% Debt on Conference Center Improvements Paid with Sales Tax Fund 20% 5,940 5,848 5,848 5,719 32.4% Property Tax Support 293,789 291,500 291,500 383,301 91,801 Percent Increase (Decrease) 31.5% Improvement Package Summary 1 of 1 This improvement package would provide funding for 15 security cameras to be placed inside and outside the Grand River Center (GRC). Currently GRC has cameras on the loading dock and an internal system for the employee service area back of house. The safety and security of the many citizens and visitors to the Grand River Center is of utmost importance. No security monitoring system is in place for all the public areas as well as entrances and exits to the building. The City Council has a high priority goal of surveillance camera funding under their Social/Cultural Vibrancy five-year goal. There will be a recurring cost of approximately $4,100 a year for the maintenance contract on the cameras starting in FY 2018. The first year is included in the purchase price. Related Cost: $66,000—Tax Funds — Non-Recurring Recommend - No Property Tax Impact: +$.00281+.25% Activity: City Clerk Significant Line Items at Maintenance Level Supplies & Services 1. Platinum Hospitality privately manages the Grand River Center. The following expenses are the responsibility of the City based on the Facility Management Agreement: 50% of energy costs (gas and electric) are estimated to be $166,588 in FY 2016 and are projected at $181,516 in FY 2017 due to a projected 8% increase in electricity costs. ➢ Insurance costs (property, boiler and general liability) are estimated to be $36,624 in FY 2016 and are projected at $35,746 in FY 2017. Property Insurance is projected to decrease 2% from FY 2016 actual. -127- ➢ Data Processing Maintenance Contracts is estimated to be $10,500 and represents the associated costs computer network support and server maintenance. (Previously budgeted in the Grand River Center— Technology Replacement Capital Improvement Program and moved to the operating budget in FY 2017). ➢ Fiscal Years 2005 through 2013 required a payment of 50% of the actual Hotel/Motel tax generated by the Grand Harbor Hotel in the previous 12 months period to be distributed annually. During FY 2013 the agreement was renegotiated to require a payment of 25% of the actual Hotel/Motel Tax generated by the Grand Harbor Hotel. Payments made to date are as follows: FY 2005— $196,400 FY 2006— $197,971 FY 2007— $188,682 FY 2008— $181,352 FY 2009— $167,958 FY 2010— $159,505 FY 2011 — $154,598 FY 2012 — $149,498 FY 2013— $156,602 FY 2014— $163,630 FY 2015— $ 87,342 FY 2016— $ 78,288 (Budgeted) FY 2017— $ 88,216 (Projected) 2. The City is responsible for repairs and maintenance in excess of $1,000 individually and $15,00 in aggregate in any fiscal year. As per the new Management Agreement the limit and aggregate will increase by the CPI as of July 1, 2015. The first years increase resulted in a change so that the City is now responsible for repairs and maintenance in excess of$1,014 individually and $15,239 in aggregate for the fiscal year. The City created a five year maintenance schedule for painting, replacing carpet, and furniture. This schedule was moved from the Maintenance Capital Improvement Project to the Operating Budget in FY 2017. Historical actual maintenance costs have been as follows: FY 2007 - $ 82,966 FY 2008 - $330,836 FY 2009 - $ 82,966 FY 2010 - $104,140 FY 2011 - $ 68,679 FY 2012 - $ 70,763 FY 2013 - $ 48,811 FY 2014 - $ 74,885 FY 2015 - $ 36,368 FY 2016 - $106,205 (Budgeted) FY 2017 - $ 70,000 (Projected) Equipment 3. The City is responsible for computer replacements and the security computer will need to be replaced in FY 2017 at a cost of$2,375. -128- Debt Service 4. In FY 2013 GO Bonds were issued for various Conference Center improvements with annual debt service of $5,719 abated with Sales Tax Construction (20%). -129- Recommended Operating Revenue Budget - Department Total 33 - CONF CENTER OPERATION Fund Account Account Title FY14 Actual FY15 Actual FY16 Adopted FY17 Recomm'd Revenue Revenue Budget Budget 100 43235 PLATINUM HOLDINGS LEASE 73,364 69,089 70,156 72,332 43- USE OF MONEY AND PROPERTY 73,364 69,089 70,156 72,332 400 59350 FR SALES TAX CONSTRUCTION 6,020 5,940 5,848 5,719 59-TRANSFER IN AND INTERNAL 6,020 5,940 5,848 5,719 33-CONF CENTER OPERATION TOTAL 79,384 75,029 76,004 78,051 -130- Recommended Operating Expenditure Budget - Department Total 33 - CONF CENTER OPERATION Fund Account Account Title FY14 Actual FY15 Actual FY16 Adopted FY 17 Recomm'd Expense Expense Budget Budget 100 62061 DP EQUIP. MAINT CONTRACTS 0 0 10,000 10,500 100 62206 PROPERTY INSURANCE 24,860 29,078 31,113 30,363 100 62207 BOILER INSURANCE 4,210 4,210 4,374 4,432 100 62208 GENERAL LIABILITY INSURAN 1,084 1,072 1,137 951 100 62411 UTILITY EXP-ELECTRICITY 128,344 122,857 128,344 132,685 100 62412 UTILITY EXP-GAS 47,805 48,831 38,244 46,154 100 62431 PROPERTY MAINTENANCE 0 0 0 70,000 100 62664 LICENSE/PERMIT FEES 0 400 0 0 100 62761 PAY TO OTHER AGENCY 163,630 87,342 78,288 88,216 62-SUPPLIES AND SERVICES 369,933 293,789 291,500 383,301 102 71550 MISCELLANEOUS EQUIPMENT 6,808 0 0 0 71 - EQUIPMENT 6,808 0 0 0 400 74111 PRINCIPAL PAYMENT 4,300 4,300 4,300 4,300 400 74112 INTEREST PAYMENT 1,720 1,640 1,548 1,419 74- DEBT SERVICE 6,020 5,940 5,848 5,719 33-CONF CENTER OPERATION TOTAL 382,761 299,729 297,348 389,020 -131- Recommended Expenditure Budget Report by Activity & Funding Sounce 33 - CONF CENTER OPERATION GRC WINDOW CLEANING SYS - 2497 FUNDING SOURCE: DRA DISTRIBUTION Account FY14 Actual FY15 Actual FY16 Adopted FY17 Recomm'd Expense Expense Budget Budget EQUIPMENT 6,808 0 0 0 GRC WINDOW CLEANING SYS 6,808 0 0 0 CONF CENTER OPERATIONS - 33300 FUNDING SOURCE: GENERAL Account FY14 Actual Expense FY15 Actual Expense FY16 Adopted Budget FY17 Recomm'd Budget SUPPLIES AND SERVICES 369,933 293,789 291,500 383,301 CONF CENTER OPERATIONS 369,933 293,789 291,500 383,301 DEBT SERVICE -33400 FUNDING SOURCE: DEBT SERVICE Account FY14 Actual FY15 Actual FY16 Adopted FY17 Recomm'd Expense Expense Budget Budget DEBT SERVICE 6,020 5,940 5,848 5,719 DEBT SERVICE 6,020 5,940 5,848 5,719 CONF CENTER OPERATION $382,760.79 $299,728.72 $297,348.00 $389,020.00 TOTAL -132- Capital Improvement Projects by Department/Division CONF CENTER OPERATION CIP Capital Improvement Project FY 14 Actual FY 15 Actual FY 16 Adopted FY 17 Recomm'd Number Title Expense Expense Budget Budget 1002390 GRC -SL AND BN CONCRETE 5,700 0 0 0 1012392 GRC -SECURITY CAMERAS 8,587 0 0 0 1012466 GRC FLOOR VACUUMS 9,734 0 0 0 1012468 GRC COPY MACHINE 8,000 0 0 0 1022113 GRC - REPLACE CARPET 0 0 0 200,000 1022306 GRC -OUTDOOR FURN REPL 13,963 0 0 0 1022307 GRC - RIVER RM COOL STUDY 0 0 0 0 1022389 GRC -UPGRDE AV EQUIP 49,858 0 8,000 6,000 1022467 GRC RECYCLING CONTAINERS 4,170 0 0 0 1022521 HVAC HANDLING UNITS 0 12,946 0 0 1022522 BOOKDROP 0 16,078 0 0 1022523 LIBRARY SANITARY LINE 0 9,891 0 0 1022588 GRC KITCHEN EQUIPMENT 0 0 44,000 0 1022589 GRC PAINT BRIDGE 0 0 30,000 0 1022651 GRC REPLC ELECTR FLR BOX 0 0 0 33,000 3501598 GRAND RIVER CTR MAINTENAN 74,885 36,368 70,000 0 3501990 GRAND RIVER CTR CHAIRS 29,345 0 30,000 52,700 3501991 GRAND RIVER CTR LVL FLOOR 39,659 0 0 0 3501993 GRAND RIVER CTR PAINT ENT 0 0 0 100,000 3502110 GRC- PAINT BALLROOMS 2,460 0 0 0 3502112 GRC-FABRIC WALL COVERING 27,737 0 100,000 0 3502113 GRC-REPLACE CARPET 0 0 80,000 0 3502388 GRC OUTDOOR SIGN 78,745 0 0 0 3502391 GRC-PAINT OFFICE 0 0 35,000 15,000 3502465 GRC RPLC SINK URINAL CONT 29,233 0 0 0 3502519 GRC TECH REPLC SUPPORT 0 55,558 2,700 25,000 3502520 GRC MAIN EQUIP RPLC 0 0 26,000 26,000 3502590 GRC ENERGY EFFICIENCY IMP 0 0 20,000 20,000 3502591 GRC LANDSCAPE IMPROVEMENT 0 0 15,000 0 3502649 GRC REPLACE PATIO CAULK 0 0 0 20,000 3502650 GRC PORTABLE BAR REPLACEM 0 0 0 15,000 CONF CENTER OPERATION TOTAL 382,075 130,841 460,700 512,700 -133- City of Dubuque Recommended Capital Improvement Program Summary Fiscal Year 2017-2021 PROGRAM/DEPT PROJECT DESCRIPTION SOURCE OF FUNDS FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL PAGE CONFERENCE CENTER General Government Grand River Center-Replace Greater Downtown TIF, $ 200,000 $ - $ 166,000 $ 173,000 $ - $ 539,000 94 Carpet Sales Tax Fund(20%), DRA Distribution Grand River Center-Paint Exterior Sales Tax Fund(20%) $ 100,000 $ - $ - $ - $ - $ 100,000 95 Metal Grand River Center-Replace DRA Distribution $ 33,000 $ - $ 33,000 $ - $ - $ 66,000 96 Electric Floor Boxes Grand River Center-Maintenance Sales Tax Fund(20%) $ 26,000 $ - $ 32,000 $ - $ - $ 58,000 97 Equipment Replacement Grand River Center-Network Sales Tax Fund(20%) $ 25,000 $ - $ - $ - $ - $ 25,000 98 Switch Upgrade Phase 2 Grand River Center-Energy Sales Tax Fund(20%) $ 20,000 $ 20,000 $ 20,000 $ - $ - $ 60,000 99 Efficiency Improvements Grand River Center-Replace Patio Sales Tax Fund(20%) $ 20,000 $ - $ - $ - $ - $ 20,000 100 Caulk Grand River Center-Paint Interior Sales Tax Fund(20%) $ 15,000 $ 15,000 $ 15,000 $ - $ - $ 45,000 101 Rooms and Areas Grand River Center-Portable Bar Sales Tax Fund(20%) $ 15,000 $ 15,000 $ - $ - $ - $ 30,000 102 Replacement Grand River Center- Sales Tax Fund(20%) $ 52,700 $ - $ - $ - $ - $ 52,700 103 Table/Chair/Podium Replacement Grand River Center-Upgrade AV DRA Distribution $ 6,000 $ - $ 90,000 $ - $ 10,000 $ 106,000 104 Equipment Grand River Center-Kitchen DRA Distribution $ - $ 30,000 $ - $ 139,000 $ 50,000 $ 219,000 105 Equipment Replacement/Rebuild Grand River Center-Replace Sales Tax Fund(20%), $ - $ 20,000 $ 35,000 $ - $ - $ 55,000 106 Fabric Wall Covering DRA Distribution Grand River Center-Reupholster Sales Tax Fund(20%) $ - $ - $ 27,500 $ - $ - $ 27,500 107 Furniture Grand River Center-Market Study GDTIF $ - $ - $ - $ 65,000 $ - $ 65,000 108 and Facility Assessment Grand River Center-Landscape Sales Tax Fund(20%) $ - $ - $ - $ 15,000 $ - $ 15,000 109 Renovation Total-Conference Center Division $ 512,700 $ 100,000 $ 418,500 $ 392,000 $ 60,000 $ 1,483,200 -134- Grand River Center FY 2017 Day to Day Operations •Management Agreement with Platinum Hospitality •Oversight provided by Leisure Services HOW IS GRAND RIVER CENTER MANAGED AND MAINTAINED? Grand River Center building •Owned by the City of Dubuque •Capital improvements of the building and grounds responsibility of the City HOW IS GRAND RIVER CENTER MANAGED AND MAINTAINED? WHO PAYS FOR WHAT? CITY General Building Repairs and Maintenance -$70,000 annually •City is responsible for items in excess of $1014 individually and $15,239 in aggregate in any fiscal year 25% actual hotel/motel tax generated by Grand Harbor Resort Property, boiler, and general liability insurance 50% gas and electric Capital improvement projects WHO PAYS FOR WHAT? PLATINUM HOSPITALITY All other general building repairs and maintenance All remaining operating expenses FY 17 IMPROVEMENT PACKAGE RECOMMENDATION $ 66,000 15 security cameras FY 18 recurring cost $4100 maintenance contract FY 17 CAPITAL IMPROVEMENT PROJECTS Replace River Room and Ballroom carpet $ 200,000 Replace electrical floor boxes -Ballroom $ 33,000 Paint Ballroom $ 15,000 Repainting exterior metal $ 100,000 Maintenance equipment purchase $ 26,000 Network switch upgrade $ 25,000 FY 17 CAPITAL IMPROVEMENT PROJECTS Energy efficiency improvements $ 20,000 Replace caulk seams on patio $ 20,000 Portable bar replacement $ 15,000 Table, podium, chair replacement $ 52,700 Replace 6 televisions $ 6,000 QUESTIONS?