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Home My WebLink AboutStrand Parking Structure Operating Budget for May 2009 throu Council/Agency Meeting Held: O Deferred/Continued to: )App ov d ❑ Conditionally Approved ❑ Denied City(C rk's ftnatur Council Meeting Date: 5/18/2009 Department ID Number: 09-26 , CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City C un it Members SUBMITTED BY: Fred A. Wilson, City Admi or PREPARED BY: Stanley Smalewitz, Econo is Development Director SUBJECT: Approval of The Strand Parking Structure Budget Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The Strand Parking Structure (Structure) is owned by the City of Huntington Beach, but operated through an Operating Agreement between the City and CIM/Huntington, LLC (CIM). Annually, CIM is required to submit a proposed budget setting forth the expenditures and revenues to be approved by City Council. Funding Source: All revenue received from operations at the Strand Parking Structure are deposited into the Strand Parking Fund (Fund 712). This fund is a Trust and Agency fund used to record monies held by the City for others. Pursuant to the Operating Agreement between the City and CIM, revenue from parking activity in the Structure is to be used for payment of monthly Structure operating expenses as well as a monthly management fee. Every ninety days, the balance of the revenue net of operating expenses, will be transferred to the City's General Fund. Recommended Action: Motion to: 1. Approve the May, 2009 — April, 2010 Strand Parking budget (Attachment 1) which establishes estimated revenues and expenditures relating to the parking structure 2. Appropriate $450,000 in expenditures (from Strand Parking Revenue) in Fund 712 for FY 2008/09 for payment of operating expenditures related to the Strand Parking Structure incurred from its opening in November, 2008 through the end of the City's fiscal year (September, 2009). Alternative Action(s): Do not approve the Strand Parking Budget and provide direction to staff to re-negotiate. REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 5/18/2009 DEPARTMENT ID NUMBER: 09-26 Analysis: The Strand Parking Structure (Structure) is operated by CIM through an Operating Agreement approved in November, 2008. The Operating Agreement sets forth the operation and use of the Structure. CIM has retained Standard Parking to manage and operate the parking structure and valet parking service. Pursuant to the Operating Agreement, CIM must submit an annual budget by May 15 of each year (Attachment 1). The budget includes an estimate of operating expenditures, as well as projected annual revenues. The City Treasurer and Economic Development Director have met with CIM and Standard Parking to review and discuss the budget. Not all buildings at the Strand are occupied;' therefore, the revenue and expenditures will be changing as the buildings are occupied. However, it is necessary at this point to establish appropriations for the City's FY 2008/09 budget in the Strand Parking Fund (fund 712) in order to pay actual and projected operating expenditures for the period of November, 2008 — September, 2009. Pursuant to the Operating Agreement, all transient parking revenues are deposited into a City account on a daily basis (i.e., Fund 712). In addition, if valet rates are charged on a hotel guest's bill, revenue from these valet rates will be deposited monthly to the same fund. The City's General Fund will receive a portion of the parking revenue deposited into Fund 712. The amount received by the General Fund will be net the following: 1. Monthly Structure operating expenses paid in arrears (e.g., personnel costs, common area expenses, maintenance, repairs, janitorial, etc.) 2. Shared parking revenue as defined in the Operating Agreement as operating income generated by the Structure in excess of rates in the Main Promenade Parking Structure (the City and CIM will split the excess operating income 50/50) 3. A minimum of $75,000. maintained as fund balance in Fund 712 per the operating agreement to cover all incurred but unpaid operating expenses The remaining revenue after these conditions are met will be transferred to the General Fund. The table below outlines actual parking revenue received through April 30, 2009 from the Structure, actual expenditures to be paid to CIM for the period November, 2008 - April, 2009, and estimated expenditures for the remainder of the City's fiscal year (May — September, 2009). The parking garage has generated $104,031 in revenue and the expenditures have been approximately $84,700. CIM has projected parking revenue through September 30, 2009 is $534,333 and expenditures of$330,644. As part of the FY 2009/10 budget development process, an appropriate budget for revenue and expenditures will be adopted in the Strand Parking Fund (fund 712). -2- 51612009 2:39 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 5/18/2009 DEPARTMENT ID NUMBER: 09-26 Strategic Plan Goal: L-4: Create an environment that promotes tourism to increase revenues to support community services and transform the City's economy into a destination economy. Environmental Status: Not applicable Attachment(sD: o o ® - a 1. Strand Parking Operating Budget 2. FIS -3- 5/6/2009 2:39 PM ATTACHMENT # 1 April 20, 2009 TO: Stanley Smalewitz Shari Freidenrich Jim Engle Kellee Fritzal FROM: Mike Novak RE: Strand Parking Budget As set forth in section 9 of the Operating Agreement for the Strand Parking Structure, attached for City approval is the proposed Strand Parking Budget for the period beginning May 1, 2009 and ending April 30, 2010. This budget reflects the revisions as discussed at the meeting held on April 16, 2009. Please let me know if you have any questions. cc: John Given; Cindy Chong; Anna Padilla; Brian Chuck; Martine Satterlee; Jeff Okyle; Pete Thorson; Louis Flokas The Strand Parking Operating Budget;May 2009 through April 2010 Page 1 of 2 MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR Total REVENUE: Visitor Transient 57,374 57,374 57,374 57,374 57,374 33,291 33,291 33,291 33,291 33,291 33,291 33,291 519,911 Monthly 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900 58,800 Abdetmuti&Lane permits 2,350 2,350 2,350 2,350 2,350 2,350 2,350 2,360 2,350 2,350 2,350 2,350 28,204 Hotel 23.468 46,935 46,935 46,935 46,935 46,935 46,935 46,935 46,935 46,935 46,935 46,935 539,753 TOTAL REVENUE 88,093 111,560 111,560 111,560 111,560 87,477 87,477 87,477 87,477 87,477 87,477 87,477 1,146,668 EXPENSES: •Parking Manager SubContractor(Standard Parking) Labor Payroll 26,792 26,792 41,594 27,729 27,729 27,729 27,729 27,729 41,594 27,729 28,561 28,561 360,26E Payroll Taxes 4,488 4,488 6,967 4,645 4,645 4,645 4,645 4,645 6,967 4,645 4,784 4,784 60,349 Life Hospital Insurance 3,120 3,120 3,120 3,120 3,120 3,120 3,120 3,120 3,120 3,120 3,120 3,120 37,440 Worker Compensation 4,434 4,434 6,884 4,589 4,689 4,589 4,589 4,589 6,884 4,589 4,727 4,727 59,623 Pension 401(k) 134 134 208 139 139 139 139 139 208 139 143 143 1,804 Total Labor Expenses 38,968 38,968 58,773 40,222 40,222 40,222 40,222 40,222 58,773 40,222 41,335 41,335 519,484 Other Expenses Accounting,Audit&Legal Fees - - 75 - - 75 - - 75 - 75 300 Garage Keepers Liability Insurance 564 564 564 564 564 564 564 564 564 564 564 564 6,768 General Exp including Credit Fees 600 600 600 600 600 600 600 600 600 600 600 600 7,200 Insurance Claims&Deductibles 417 417 417 417 417 417 417 417 417 417 417 417 5,004 Janitorial Services 650 650 650 650 1,750 650 650 650 650 650 650 1,760 10,000 Liability Insurance 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 16,164 Business License - - - - - - 200 - - - 200 Lights&Mechanical 500 500 500 500 500 500 500 Soo 500 500 500 500 6,000 Management Fee 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,600 18,000 Payroll Processing Charge 136 136 136 136 136 136 136 136 136 136 136 136 1,632 Postage&Freight 15 15 15 15 15 15 15 15 15 15 15 15 180 Restriping - - - 6,000 - - - - 6,000 - 12,000 Revenue Equipment Maintenance - - 300 - - 300 - 300 - - 300 1,200 Stationary&Once Supplies 41 42 43 44 45 46 47 48 49 50 51 52 558 Supplies&Small Tools 120 120 120 120 120 120 120 120 120 120 120 120 1,440 Telephone/BeepedtnternetfVPN 105 105 105 105 106 105 105 105 105 105 105 105 1,260 Tickets Expense - 400 - 400 - 400 - - 400 1,600 Uniforms 1,020 1,020 1,020 1,020 1,020 1,020 1,020 1,020 1,020 1,020 1,020 1,020 12,240 Total Other Expenses 7,015 7,016 7,792 7,018 14,119 7,795 7,021 7,022 7,998 7,024 13,025 8,901 101,746 Total Parking Manager SubContractor 45,983 45,984 66,565 47,240 54,341 48,017 47,243 47,244 fib 771 47,246 54,360 50,236_- 621,230_ •On-Site Facility Management On-Site Manager 781 781 781 781 781 781 781 781 781 781 1,742 805 10,357 On-Site Engineer 534 461 380 485 400 544 382 382 400 400 400 400 5,168 Elevator Maintenance - - - - - - - - 350 - - 350 700 Engineering Telephone 11 11 11 12 12 12 12 12 12 12 12 12 141 Fire&Safety-License&Inspection Fee 350 350 350 350 350 350 350 350 350 350 350 350 4,200 Fire&Safety Alarm Monitoring 66 66 66 66 66 66 66 66 66 66 66 66 792 Fire&Safety Maintenance 347 347 347 347 347 347 347 347 347 347 347 347 4,165 Lock&Keys 11 11 11 12 12 12 12 12 12 12 12 12 141 Office Expenses/Supplies/Materials 153 153 153 159 159 159 159 159 159 159 159 159 1,890 Parking Office Telephone 975 975 975 975 975 975 975 975 975 975 975 975 11,700 Pest Control Service Contract 148 148 148 148 149 148 148 148 148 148 148 148 1,774 Property insurance 963 963 963 963 963 963 963 963 963 963 963 963 11,556 Security Service Contract 2,087 2,913 3,004 3,004 2,913 2,969 2,896 2,970 3,059 3,059 3,059 3,059 35,891 Security Telephone 160 160 160 160 160 160 160 160 160 160 160 160 1,920 Trash Removal Service Contract 185 231 231 231 231 185 185 185 185 185 185 185 2,404 Utilities 6,500 6,500 6,500 61500 61500 6,500 6,500 6,500 6,500 5,500 6,500 6,500 78,000 Total On-Site Facility Management 14,171 14,070 14,080 14,193 14,017 14,171 13,935 14,010 14,467 14,117 15,078 14,491 170,799 TOTAL EXPENSES 60,154 60,054 80,645 61,433 68,358 62,188 61,178 61,254 81,238 61,363 69,438 64,727 792,029 NET OPERATING INCOME 27,939 51,506 30,915 50,127 43,202 25,289 26,299 26,223 6,239 26,114 18,038 22,750 354,638 The Strand Parking Operating Budget;May 2009 through Anril 2010 Page 2 of 2 •Parking Manager SubContractor(Standard Parking)-Notes: Janitorial Services to include overall aesthetics,painUgraffitti removal,sweeping&power washing •On-Site Facility Management Expenses•Notes: Expense Item Budgeting Method On-Site Manager 10%Allocation of total estimated cost On-Site Engineer 2 10%Allocation of total estimated cost Elevator Maintenance ' Allocated based on applicable service to Garage-see below for calculation method Engineering Telephone 10%Allocation of total estimated cost Fire&Safety-License&Inspection Fee Based on scope of work,allocation based on Garage square footage as a percentage of entire Project Fire&Safety Alarm Monitoring Based on scope of work,allocation based on Garage square footage as a percentage of entire Project Fire&Safety Maintenance Based on scope of work,allocation based on Garage square footage as a percentage of entire Project Look&Keys Will charge based on actual garage-related cost Office Expenses/SupplieslMaterials 10%Allocation of total estimated cost.Includes office supplies for on-site management and engineer,small tools for engineer,printing&photocopy costs. Parking Office Telephone Will charge based on actual garage-related cost Pest Control Service Contract Based on scope of work,allocation based on Garage square footage as a percentage of entire Project Property Insurance Will charge based on actual garage-related cost Security Service Contract 10%Allocation of total estimated cost Security Telephone 10%Allocation of total estimated cost Trash Removal Service Contract 10%Allocation of total estimated cost Utilities Will charge based on actual garage-related cost 2 Job tasks for On-Site Engineer: Supervise vendor contracts for Strand,including but not limited to landscaping,trash removal,elevator maintenance,pest control Coordinate Standard Parking's vendor contracts and janitorial tasks Monitor and schedule for firelii€elsafety equipment Touch up painting Preventitive maintenance on trash compactor,HVAC,furnishings,carts,doors,windows Responsible for plumbing issues Key player in organizing and implementing emergency evacuation procedures Provide Owner with copies of engineering daily logs,periodic management reports,and copies of Preventive Maintenance Programs. Establish and maintain a maintenance library consisting of manufacturer manuals,maintenance manuals,operating togs and similar compilations of information pertaining to the equipment. Furnish Owner with recommendations for improvements and increased efficiency in the operation of the equipment. Conduct parking garage inspections to monitor all systems,including fans,fire life safety,waste hauling,etc. 3 Elevator calculation Service Rate=$250 per quarter x 3 elevators 2 elevators x$250 x 2/4: 250 Each elevator has 2 garage stops out of 4 stops total 1 elevator x$250 x 2/5: 100 Elevator has 2 garage stops out of 5 stops total $ 350 ATTACHMENT #2. a✓" --.may ' CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION FINANCE DEPARTMENT TO: FRED A. WILSON, CITY ADMINISTRATOR FROM: BOB WINGENROTH, DIRECTOR OF FINANCE;/`. SUBJECT: FIS 2008-09-16 APPROVAL OF THE STRAND PARKING STRUCTURE BUDGET DATE: MAY 6, 2009 As required by Resolution 4832, this Fiscal Impact Statement has been prepared for"Approval of the Strand Parking Structure Budget." If the City Council approves this action, there will be no effect on the Strand Parking Structure fund balance. All expenditures are offset by revenues not anticipated during the adoption of the 2008-09 budget. RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Approval of The Strand Parking Structure Budget COUNCIL MEETING DATE: May 18, 2009 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not Applicable Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑ Not Applicable Bonds (If applicable) Attached ❑ Not Applicable Staff Report (If applicable) Attached ❑ Not Applicable Commission, Board or Committee Report (If applicable) Attached ❑ Not Applicable Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED F,ORWPkODED Administrative Staff ( ) Deputy City Administrator (Initial) ) ( ) City Administrator (Initial) ) ( ) City Clerk ( ) EXPLANATION FOR RETURN OF ITEM: QqW RCA Author: Fritzal 1519