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Home My WebLink AboutThe Strand Parking Structure - Approve the annual budget fori Dept. ID ED 14-18 Page 1 of 2 Meeting Date: 6/2/2014 CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 6/2/2014 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Ken Domer, Assistant City Manager Kellee Fritzal, Deputy Director Business Development SUBJECT: Approve the annual budget for The Strand Parking Structure pursuant to the Operating Agreement with CIM/Huntington, LLC. . Statement of Issue: The Strand Parking Structure ("Structure") is owned by the City of Huntington Beach and 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 Financial Impact: All revenue received from operations at The Strand Parking Structure is deposited into The Strand Parking Fund (Fund 712). The Fund is a Trust and Agency fund used to record monies held by the City and CIM. Revenue from parking activity in the Structure is to be used for payment of monthly operating expenses, including a management fee. There is sufficient funding budgeted in Fund 712 to cover the expenditures through the remainder of Fiscal Year 2013-2014. Recommended Action: Approve The Strand Parking Budget for July 2014-September 2014, establishing estimated revenues and expenditures related to The Strand Parking Structure. Alternative Action(s): Do not approve The Strand Parking Budget and provide direction to staff. Analysis: The Strand Parking Structure is operated by CIM through an Operating Agreement, which was approved in November, 2008. The Operating Agreement sets forth the operation and use of the Structure. CIM selected LAZ Parking in 2012 to operate the Structure and valet parking services to ensure that parking services continue to operate as efficiently as possible. Pursuant to the Operating Agreement, CIM must submit an annual budget by May 15th of each year. The budget includes estimated operating expenditures, as well as projected annual revenues. The Office of Business Development has reviewed CIM's budget. The majority of the buildings are now occupied and as a result both parking expenditures and revenue have increased. The City's General Fund will receive a portion of the parking revenue deposited into Fund 712. The account must have a minimum of $75,000 in the fund balance to cover all incurred, yet unpaid, uB -37- Item 5. - I Dept. ID ED 14-18 Page 2 of 2 Meeting Date: 6/2/2014 operating expenses. When the monthly structure operating expenses are paid, and if there is adequate revenue for the month, a minimal management fee is paid to CIM. The revenues remaining after these conditions are met are transferred to the General Fund. In the current fiscal year, $250,000 of parking revenue was transferred to the General Fund. It is projected that revenues of $300,000 will be transferred to the General Fund in Fiscal Year 2014- 2015. CIM has projected parking revenue of $525,000 through September 2014 and expenditures. of approximately $155,000. The balance remaining between is used to pay the monthly operating expenditures outstanding for billings submitted for April through September 2014, as well as any additional operations and maintenance occurring between. now and September 30th. As part of the FY 2014/15 budget development process, an appropriate budget for revenue and expenditures will be adopted in The Strand Parking Fund. Environmental Status: Not applicable. Strategic Plan Goal: Enhance economic development Attachment(s): 1. The Strand Parking Budget — 2014-2015 Item 5. - 2 fTB -3 g- Location The Strand Period 2014-2015 REVENUE TOTAL January February March April May June July August September October November December Hotel Valet 2014-2015 519,000.00 2015 35,811.00 2015 33,735.00 2015 41,001.00 2015 48,267.00 2015 39,963.00 2015 ,48,267.00 2014 49,824.00 57,609.00 50,343.00 40,482.00 39,444.00 34,254.00 Transient Valet 50,000.00 2,850.00 2,850.00 4,550.00 4,150.00 4,700.00 5,850.00 8,500.00 4,650.00 3,300.00 3,250.00 2,800.00 2,550.00 Transient Self Park 715,000.00 28,600.00 30,030.00 50,765.00 54,340.00 75,075.00 97,955.00 143,000.00 88,660.00 58,630.00 35,750.00 25,025.00 27,170.00 Prepaid Parking 75,000.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 6,250.00 Events 20,000.00 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 Monthly Parking 144,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00, 12,000.00 12,000.00 Totallncome EXPENSE 1.523.000.00 87.177.67 86.531.67 116.232.67 26 139.654.67 71 221.240.67 170.835.67 132.189.67 99.39g•67 g7.185.67 g3•B90.67 Labor Wages Garage 80,000.00 6,240.00 6,240.00 6,240.00 6,240.00 6,400.00 7,040.00 7,840.00 7,840.00 7,040.00 6,400.00 6,240.00 6,240.00 Wages Valet 168,000.00 13,104.00 13,104.00 13,104.00 13,104.00 13,440.00 14,784.00 16,464.00 16,464.00 14,784.00 13,440.00 13,104.00 13,104.00 Health Insurance 19,768.80 1,647.40 1,647.40 1,647.40 1,647.40 1,647.40 1,647.40 1,647.40 1,647.40 1,647.40 1,647.40 1,647.40 1,647.40 Salary -Manager 53,000.00 4,416.67 4,416.67 4,416.67 4,416.67 4,416.67 4,416.67 4,416.67 4,416.67 4,416.67 4,416.67 4,416.67 4,416.67 Salary - Supervisor 8,400.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00 329,168.80 SubtotalLabor- Payroll 26,108.07 26,108.07 26,108.07 26,108.07 26,604.07 28,588.07 31,068.07 31,068.07 28,588.07 26,604.07 26,108.07 26,108.07 TF&B (31.8% of PR) 104,675.68 8,302.37 8,302.37 8,302.37 8,302.37 8,460.09 9,091.01 9,879.65 9,879.65 9,091.01 8,460.09 8,302.37 8,302.37 Uniforms 1.7 Cents/PR $ 5,595.87 443.84 443.84 443.84 443.84 452.27 486.00 528.16 528.16 486.00 452.27 443.84 443.84 110,271.55 8,746.20 8,746.20 8,746.20 8,746.20 8,912.36 9,577.00 10,407.80 10,407.80 9,577.00 8,912.36 8,746.20 8,746.20 Subtotal Other Labor Total Labor 439,440.35 34,854.27 34,854.27 34,854.27 34,854.27 35,516.43 38,165.07 41,475.87 41,475.87 38,165.07 35,516.43 34,854.27 34,854.27 Operating Operating Supplies 1,200.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 License and Permits 400.00 33.33 33.33 33.33 33.33 33.33 33.33 33.33 33.33 33.33 33.33 33.33 33.33 Claims 5,000.00 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 416.67 Office Supplies 1,200.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Bank Fees 300.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 Credit Card Fees 11,628.00 478.04 499.78 840.79 889.05 1,212.58 1,577.84 2,302.80 1,418.31 941.34 592.80 422.94 451.74 Phone & Internet 2,448.00 204.00 204.00 204.00 204.00 204.00 204.00 204.00 204.00 204.00 204.00 204.00 204.00 51gnage 1,700.00 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 Revenue Control Maintenance 15,600.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 1,300.00 Sweeper/ Janitorial per CIM 24,000.00 1,700.00 1,600.00 1,700.00 1,700.00 2,200.00 2,600.00 2,700.00 2,600.00 2,200.00 1,700.00 1,600.00 1,700.00 Insurance 19,037.50 1,089.72 1,081.65 1,452.91 1,583.42 1,745.68 2,149.86 2,765.51 2,135.45 1,652.37 1,242.48 1,089.82 1,048.63 Tickets / Key Cards 4,500.00 375.00 375.00 375.00 375.00 375.00 375.00 375.00 375.00 375.00 375.00 375.00 375.00 Accounting Fees 1,476.00 123.00 123.00 123.00 123.00 123.00 123.00 123.00 123.00 123.00 123.00 123.00 123.00 Mystery Shoppers 1,056.00 88.00 88.00 88.00 88.00 88.00 88.00 88.00 88.00 88.00 88.00 88.00 88.00 89,545.50 Total Operating 6,174.43 6,088.09 6,900.36 7,079.14 8,064.93 9,234.36 10,674.98 9,060.42 7,700.37 6,441.95 6,019.43 6,107.04 Management Fees . ,m s � 9000y0 a. y f 1�500:00 � r a ,SOOF00� m.�..�, ARRN 0�00 a t1,500 o, 7g , 1;500:00 p ;r i 1;500:00.1 F r � v 500 00 an 'm` im1500; -7 ,. i ��1f500 00 f� 1,900i00 1;SOOS00; m�,9'a , °" t1,50 00 TOTAL EXPENSE OPERATINGNET 546,985.85 42,528.70 42,442.36 43,254.63 43,433.40 45,081.36 48,899.43 53,650.84 52,036.29 47,365.44 43,458.38 42,373.70 42,461.31 NOI INc1 W