HomeMy WebLinkAboutThe Strand Parking Structure Budget pursuant to Operating AgCouncil/Agency Meeting Held:
Deferred/Continued to:
❑ Denied 1 C^ Berk'
Council Meeting Date: June 4, 2012 I Departmea Its Number:
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
ED 12-021
PREPARED BY: Bob Hall, Deputy City Manager/Economic Development Director
SUBJECT: Approve the The Strand Parking Structure Budget pursuant to the
Operating Agreement with CIM/Huntington LLC., and appropriate
funds to cover the operating expenditures
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 the City Council.
Financial Impact: All revenue received from operations at the Strand Parking Structure is
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 the parking activity in the Structure is to be used for
payment of monthly operating expenses, including a management fee.
Recommended Action: Motion to:
A) Approve the June 2012 - September 2012 Strand Parking Budget, establishing estimated
revenues and expenditures relating to the Strand Parking Structure; and,
B) Appropriate $300,000 for expenditures (from the Strand Parking Revenue) from Fund 712
for Fiscal Year 2011/12 for payment of operating expenditures related to the Strand Parking
Structure through the end of the City's fiscal year (September 2012).
Alternative Action(s):
Do not approve the Strand Parking Budget and provide direction to staff.
xB -181- Item 9. - I
REQUEST FOR COUNCIL ACTION
MEETING DATE: 6/4/2012 DEPARTMENT ID NUMBER: ED 12-21
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 currently has changed parking operators to LAZ Parking to manage
and operate the Structure and valet parking services. LAZ was retained after a Request for
Proposal was elevated to ensure that the parking services are operating as efficiently as
possible. Pursuant to the Operating Agreement, CIM must submit an annual budget by May
15 of each year.
The budget includes an estimate of operating expenditures, as well as projected annual
revenues. The Economic Development Department has met with CIM and LAZ Parking to
review and discuss the budget. A majority of the buildings are now occupied which has
increased the parking expenditures and revenue.
This action is necessary to establish appropriations for the City's FY 2011/12 budget in the
Strand Parking Fund (Fund 712) in order to pay actual and projected operating expenditures
for the period of June 2012 to September 30, 2012. Pursuant to the Operating Agreement, all
transient parking revenues are deposited into a City account on a daily basis. In addition, if
valet rates are charged on a hotel guest's bill, revenues from these valet rates are deposited
monthly to the same fund.
The City's General Fund will receive a portion of the parking revenue deposited into Fund
712. The Operating Agreement sets forth the revenue. The account must have a minimum of
$75,000 in the fund balance to cover all incurred, yet unpaid, operating expenses. The
monthly structure operating expenses are paid and if there is adequate revenue for the
month, a management fee is paid to CIM. All revenues above the expenditures are shared
between the City and CIM. The shared parking revenue is defined in the Operating
Agreement as operating income generated by the Structure in excess of rates in the Main
Promenade Parking Structure.
The revenues remaining after these conditions are met are transferred to the General Fund.
In the current fiscal year, $150,000 (an increase from $75,000) will be transferred into the
General Fund leaving additional revenue that will be shared with CIM. Next year, it is
proposed that revenues of $250,000 will be transferred to the General Fund. CIM has
projected parking revenue through September 30, 2012, to be $624,000 and expenditures of
$215,000. As part of the FY 2011 /12 budget development process, an appropriate budget for
revenue and expenditures will be adopted in the Strand Parking Fund.
Environmental Status: Not applicable
Strategic Plan Goal: Enhance economic development
Attachment(s):
Item 9. - 2 HB -182-
ATTACHMENT
1 I
-J.
HB -183- Item 9. - 3
0
00
-P
Location,
.Period
TOTALOctober
Noveffiber,
e•
Hotel Valet
246,750.00
15,101.10
15,051.75
17,346.53
19,369.88
22,849.05
23,293.20
32,867.10
32,003.48
21,171.15
16,581.60
15,989.40
15,125.78
Transient Valet
63,000.00
3,855.60
3,843.00
4,428.90
4,945.50
5,833.80
5,947.20
8,391.60
8,171.10
5,405.40
4,233.60
4,082.40
3,861.90
Transient Self Park
804,300.00
49,223.16
49,062.30
56,542.29
63,137.55
74,478.18
75,925.92
107,132.76
104,317.71
69,008.94
54,048.96
52,118.64
49,303.59
Validations
Events
Monthly Parking
67,200.00
5,600.00
5,600.00
5,600.00
5,600.00
5,600.00
5,600.00
5,600.00
5,600.00
5,600.00
5,600.00
5,600.00
5,600.00
Total Income
,,EXPENSE
1.181.250.00
779.$
3�
83.917.72
I
93.052.93
IQLULL3
110.766.32
153.991.46
1VA0L2.2�
Old
AQA"
77.790.44
73.892. 77
Labor
Wages Garage
86,231.60
6,139.69
6,122.44
6,493.24
6,984.76
7,553.89
7,709.11
9,545.84
9,244.03
7,183.09
6,657.08
6,450.12
6,148.31
Wages Valet
243,702.48
10,231.55
10,202.81
10,820.72
11,639.82
12,588.25
12,846.91
15,907.75
15,404.80
11,970.33
11,093.75
10,748.87
10,245.92
Salary- Manager
48,410.00
4,034.17
4,034.17
4,034.17
4,034.17
4,034.17
4,034.17
4,034.17
4,034.17
4,034.17
4,034.17
4,034.17
4,034.17
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
Total Payroll
286,743.08
21,205.41
21,059.42
22,048.23
23,358.75
24,876.31
25,290.19
30,187.76
29,383.00
23,887.60
22,485.00
21,933.26
22,128.40
88,316.87
6,500.46
6,486.30
6,790.82
7,194.49
7,661.90
7,789.38
9,297.83
9,049.96
7,357.38
6,925.38
6,755.41
6,507.55
TF&B (30.8% of PR)
Uniforms 1.7 Cents/PR $
4,874.63
358.79
358.01
374.82
397.10
422.90
429.93
513.19
499.51
406.09
382.25
372.86
359.18
Sub -Total Labor
379,934.58
j §4,
7
29.213.77
32.961.11
33.509.50
39.998.78
3�,932.47
31.651.06
Q
29.061.44
27.995.13
Operating
Maintenance
600.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
Operating Supplies
744.00
62.00
62.00
62.00
62.00
62.00
62.00
62.00
62.00
62.00
62.00
62.00
62.00
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
252.00
21.00
21.00
21.00
21.00
21.00
21.00
21.00
21.00
21.00
21.00
21.00
21.00
Bank Fees
600.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
50.00
Credit Card Fees
11,329.50
690.02
687.77
792.63
885.08
1,044.06
1,064.35
1,501.82
1,462.35
967.39
757.67
730.61
691.15
Phone & Internet
2,040.00
170.00
170.00
170.00
170.00
170.00
170.00
170.00
170.00
170.00
170.00
170.00
170.00
Signage
1,659.00
138.25
138.25
138.25
138.25
138.25
138.25
138.25
138.25
138.25
138.25
138.25
138.25
Revenue Control Maintenance
5,800.00
483.33
483.33
483.33
483.33
483.33
483.33
483.33
483.33
483.33
483.33
483.33
483.33
Sweeper/Wash
4,780.00
398.33
398.33
398.33
398.33
398.33
398.33
398.33
398.33
398.33
398.33
398.33
398.33
Insurance
14,765.63
922.25
919.46
1,048.97
1,163.16
1,359.51
1,384.58
1,924.89
1,876.15
1,264.82
1,005.80
972.38
923.64
Tickets / Key Cards
2,769.00
230.75
230.75
230.75
230.75
230.75
230.75
230.75
230.75
230.75
230.75
230.75
230.75
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
1,032.00
86.00
86.00
86.00
86.00
86.00
86.00
86.00
86.00
86.00
86.00
86.00
86.00
Miscellaneous
168.00
14.00
14.00
14.00
14.00
14.00
14.00
14.00
14.00
14.00
14.00
14.00
14.00
43
7�a
31.754.29
33.298.70
35.241.91
37.608.01
3�{,201.76
45.668.82
44.514.31
36.126.60
33.799.44
33.007.77
31.853.25
Operating Expense
Operating Surplus
748.300.29
41.959.60
gQy
57.811.01
11.153.02
72.564.56
�g8.322.64
105.577.98
65.058.89
46.664.7Z
44.782.67
42.038.01
Management Fees
F
V
[Ukk
Total Expense
45
33.370.26
4 29
44 ZQ
36.791.91
39.751.76
47.249.82
46.095.31
37.707:60
5�80.44
34.588.77
33.434.25
OPERATING,•
NOI
1 729,514.2240
40,252.76
56,261.01
_Zj&L4.5fi
1 106,74l.fi4
1 IQK29 .9
1 93.47ZM0
.72
2 4 4