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HomeMy WebLinkAboutFY 2000/2001 Art Center Budget - Art Center Reorganization/S Council/Agency Meeting Held: Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied m-P. Jerk' ignature Council Meeting Date: September 18, 2000 Department ID Number: CS-00-022 CITY OF HUNTINGTON BEACH _ REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City Administrator&vm PREPARED BY: RON HAGAN, Community Services Director "�� ) SUBJECT: APPROVE ART CENTER REORGANIZATION/STRATEGIC ACTION PLAN/ASSESSMENT Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Per City Council direction, staff has prepared the Art Center Assessment and the Strategic Plan for approval by Council. Funding Source: General Fund and Park Acquisition and Development Unappropriated Fund Balances Recommended Action: Motion to: 1. Approve the Strategic Plan for Art Center programs, staffing and operations; 2. Approve the Art Center budget for FY00/01, which provides for the city to support the Art Center at the $100,000 level, the Art Center Foundation to support the Art Center at the $75,000 level, and a program income level of$105,000; 3. Confirm that the city, not the Art Center Foundation, shall be responsible for the past capital and operating deficit in the Art Center Fund; and 4. Direct staff to close out the Cultural Fund's accumulated five year operating deficit of $522,000 which will reduce the unappropriated General Fund reserve by the same amount, and direct staff to �'y wre�R 1 Q 4 o0o R om "Ie 6*0 $494�D Re 3%Ov E T- T� W1r- RCc��nlS�c( PND �Po �+l) Nh Ay PIZ�R SE V S 000DDTo 1}r- CL4VW �. F IN0 Alternative Action(s): Do not appr�ve° ie enert�ateglc �lan aS prepared, and direct staff to develop alternative program and operating/financial plans for the Art Center. Analysis: In 1999, staff was directed to reorganize the Huntington Beach Art Center to meet the program needs of the Huntington Beach community and prepare an operational plan and budget. At the direction of City Council, in July 1999 the administrative staff of the Cultural, Historic and Events Services Division relocated to the Art Center to initiate a reorganization of the Art Center. The Community Services Manager was directed to do a program assessment and develop a strategic plan and budget for FY00/01 for the Art Center. Specific areas addressed were deferred maintenance, accounting systems, personnel, general program direction, community involvement, financial support, facility design and marketing. l 6k_ HUNTINGTON BEACH Business ART CENTER Chan2000 es CONTINUED : Revitalize the Major Donor Program, and: 2001 Solicit naming opportunities for three rooms; ' Reestablish Patrons and Associates Programs; ' Reestablish the Gourmet Dinner Group — Club 538. ❑ Increase income opportunities, through: ' Classes and workshops; ' Tours and lectures; ' Performances and artists' fees. ❑ Market membership to Huntington Beach residents, and: Target families and individuals with new benefit packages. ❑ Allocate expenses according to income projections by: Reducing staffing levels and combine job responsibilities; ' Reactivating volunteer groups for selected tasks. CITY OF HUNTINGTON BEACH Cultural, Historic and Events Services Division Huntington Beach, California S. HUNTINGTON BEACH _ ART Marketinq : CENTER0 Increase awareness of the Art Center in the Community of Huntington Beach by: 2000 Advertising in the local media; Offering free admission for the Gallery program, underwritten by 2 0 1 the Foundation; Inviting community groups to hold meetings at the Art Center; Working with the Conference and Visitors Bureau, downtown merchants, and hotel concierges to attract tourists to the Art Center; 01 Implement marketing Adding street directional signage strategies to draw attention on Main Street, Beach Boulevard to the Art Center in the and Pacific Coast Highway; downtown area by: Adding a display/informational kiosk at Pier Plaza; Improving signage; Increasing outreach to schools, YO Use of building and light senior citizen organizations and pole banners; area art associations; • Adding an Art Center Store Developing media/printed window display facing materials reflecting new Main Street; approaches. • Adding coffee services and outdoor cafe-style seating on weekends; • Improving exterior lighting under palm trees. CITY OF HUNTINGTON BEACH Cultural, Historic and Events Services Division Huntington Beach, California 6. ORGANIZATION CHART Cultural, Historic & Event Services Division Huntington Beach Art Center Community Services Manager Acting Ari Center Director Camrrunity Services Dept Management Team Division Secretary Allied Arts Board Mvisory to the council Recurrent Account Tec Art Carter Shared with Foundation Huntington Beach Art Center Adhoc Committees Foundation Board of Directors BUILD THE BANDSTAND,SAVE THE BIRDS 5g1(Q3 Established 1989 Committees Founders, Patrons Summer Classic,Club 538 Affiliated Groups Public Art Committee 0� Art Center Alliance Ad«Pdvlsary Huntington Beach Art Band Public Art Consultant Historic Resources Board lcIvisory to CAy Council Board of Trustees Museum Aides Newland House Museum 3Reccurent Exhibition/Performance Education Coordinator Cultural Services Supervisor Cultural Services Aide I Development Coordinator Coordinator Vacant Vacant-Refill ASAP Vacant Vacant curator"BeneAded Position Al Camp Cmdinetor CombincOutles of Aide-Operations Manager 6 Speclat Prciects and Openeons Manager Contracted Aa Needed Developrrxnl-Benefited Position BeneRted Pofllon r olunteerCoordlnator Art Store Exhibition Preparator Gallery Aides Av/Speclal Project Vacant Volunteers Recuuent Maintenance Worker Coordinator-Vacant Recurrent contracted Po Needed FUNDRAISERS LLIhil U- _I -9 Garden Tour Visit approximately 5 artists' home/studios where their garden is inspiration for their work. A luncheon or after the event tea «gill be part of the admission. Tentatively scheduled for: Mid-June, 2000 Approximate Ticket Cost $25 Scheduled to coincide with the Landscape exhibition Election Night Party A twist on the Oscar Night Party Donors open their homes on Election Night as a fundraiser for The Art Center. Each guest pays suggested amount to the Host/Hostess for a dinner invitation. If the "Real Candidates" can have a dinner for S1,000 a plate- so can we. Approximate Ticket Cost $50 Scheduled for November 3"d thru November 12t", 2000 Artist Golf Tournament The curator will invite nine installation artists to create a golf hole. The nine installations will be installed and played at the Art Center. Guests pay to play the course. Approximate Ticket Cost $50 Tentatively scheduled for: Summer, 2001 il. #QUEST FOR COUNCIL ACTIR MEETING DATE: September 18, 2000 DEPARTMENT ID NUMBER: CS-00-022 Concurrently, the city hired an outside consultant to complete a program assessment. The assessment examined the center's original mission, community perception of the center as well as past and future directions for programming. Various meetings were conducted withkey investors of the center including city officials, the Art Center Foundation Board of Directors, Patrons, and Founders, various community art groups as well as the Council- appointed Allied Arts Board. Huntington Beach families and individuals who had taken advantage of the Art Center programs were also invited to participate. In October 1999, at the City Administrator's direction, the city contracted with Rossi and Finkelstein to complete a financial review of the Art Center as well as the two support 501©3 organizations (the Art Center Foundation established in 1989 and the Huntington Beach Art Center Board of Directors established in 1998). The intent of the review was to analyze related accounts to determine the extent of the center's capital and operating deficit existing since construction in 1994 and opening in 1995, and to report findings to the city. This report should be completed and presented to City Council and the Art Center Foundation by the end of October. The foundation has stated that its financial contribution to the future of the Art Center is dependant upon completion of the financial review and a clear statement from Council that the foundation would not be held responsible for any past deficit. The current accumulated five-year operating deficit for the Art Center is $522,000. Staff is recommending that Council close out the Cultural Fund's (Art Center) accumulated five year operating deficit of $522,000 from the unappropriated General Fund reserve, and direct staff to eliminate the accounts receivable loans in the Park Acquisition & Development Fund from the Cultural Fund in the amount of $194,000 and the Library Services Fund of $290,000. The Park Acquisition & Development Fund was used to complete both the Art Center and the Central Library expansion. Although both projects are eligible expenditures of Park Acquisition & Development funds, Council's previous action was to treat the use of the PA&D funds for these projects as loans to be paid back by the Art Center and Library. To date, neither the Art Center nor the Library has been able to generate sufficient revenue over operating and debt service to repay these loans. Carrying these loans on the books of the Art Center and Library has made it difficult for both facilities to secure grants and donations for current and future operations. Eliminating the accounts receivable in the PA&D fund from the Art Center and Library will not affect current PA&D projects. The alternative of this action would be for Council to pay the loans from the General Fund which would result in a decrease of $484,000 in the unappropriated General Fund balance and an increase of $484,000 in the PA&D fund. Since these were eligible expenditures from the PA&D fund in the first place, staff is not recommending repayment from the General Fund, but rather writing off the accounts receivable in the PA&D fund. The Art Center revenue and expenses are within budget for FY99/00. In the past, Art Center budgets were appropriated based on projected revenue. During the first five years of operation, the Art Center did not make its projected revenue thus creating the operating deficit. Under the new plan, the Art Center budget is based on last year's revenue, and any additional revenue generated during the year can be applied to next year. This method insures that revenue will match expenditures before appropriations. Carrying the deficit on Art Center Assessment.doc -2- September 8,2000 2:48 PM RCQUEST FOR COUNCIL ACTIvN MEETING DATE: September 18, 2000 DEPARTMENT ID NUMBER: CS-00-022 the Art Center Fund books has caused many problems, both in securing grants and patron donations. The foundation and individual donors are concerned that their donations or grants to the future of the Art Center will be used for the payoff of the past deficit caused by the construction. Consequently, they are reluctant to donate to the Art Center. Over the past twelve months, the Community Services Manager and his staff studied all aspects of the center and began to introduce cost reduction measures and program modifications. Chief changes are reduction of staff, contracting, and job sharing. These changes are illustrated in the following chart. Art Center Staffin 1998/1999 Staffing Level 2000/2001 Staffing Level Cultural Services Supervisor Fill &Combine with Aide's Duties Cultural Services Aide * Eliminate Exhibition &Program Coordinator Exhibition & Program Coordinator Recurrent Education Coordinator Vacant Recurrent Exhibition Pre arator Recurrent Exhibition Pre arator Recurrent Volunteer Coordinator Vacant Recurrent Special Event Coordinator Vacant Recurrent Summer Classic Coord. Vacant Recurrent Maintenance Worker Recurrent Maintenance Worker Recurrent 2 Gallery Aides Recurrent 2 Gallery Aides Paid Intern Recurrent Bookkeeper A contracted employee assumed the duties of the Cultural Services Supervisor as well as other division wide responsibilities during the division/art center transition. The contracted services will end with the hiring of a new supervisor. The cost for the contracted employee is reflected in this year's division/art center budget. Staff is also refocusing the program to meet the needs of the Huntington Beach community vs. marketing to a regional and national art audience. The staff is broadening the program to make it more inclusive and appealing to the Huntington Beach audience. Additional children and teen programs have been added. A broader review of the art center operations as well as the new goals and objectives are discussed in the strategic plan. Financially, the Art Center will operate the FY00/01 on a budget of $280,000. This is a significant decrease from previous budgets ranging upward to $390,000. This year's budget does include additional community grants and business support. The foundation has committed $65,000 for programming and $10,000 for the Art Store. The $75,000 program commitment realigns the foundation with its original mission. In summary, the foundation will partially underwrite children's art camps, the after-school teen program and all exhibitions. In addition, the foundation has agreed to underwrite admission to the Art Center as a goodwill gesture to the community of Huntington Beach. With this donation and the approval of Council not to hold the foundation responsible for the past deficit, the Art Center will be opened to the public with "free admission". This support will allow a greater number of residents to use the Art Center. It should also generate greater sales in the Art Store. The plan also calls for parking meters or a Park & Pay system to be installed at the Art Center parking lot. The system would operate from 7:00 PM to 7:00 AM to control nighttime parking problems caused by adjacent restaurants. Paid parking would also raise additional revenue for the General Gund to offset support to the Art Center. Art Center Assessment.doc -3- September 8,2000 2:49 PM RIREQUEST FOR COUNCIL ACT MEETING DATE: September 18, 2000 DEPARTMENT ID NUMBER: CS-00-022 The Art Center Supervisor position that remains vacant today will be filled within sixty days. The cost for this position has been previously approved by Council and is currently projected in the overall $280,000 budget for the center. A portion of the personnel costs for the re-filled position will be covered by the division's administrative budget due to the fact the employee will assume other division duties as well. Finally, Council should be aware that the city support of the center is covered through developer fees. The Community Enrichment Fees allocated for the center are currently at $115,000 for FY99/00, down from $125,000 in FY98/99. The allocation is expected to dip to $100,000 for FY00/01 and to $77,000 for FY01/02. This shortfall may be made up from Art Center generated fund-raising efforts. However, staff recommends Council consider a city support level of $100,000 from either development fees or the General Fund to maintain the basic level of support outlined in the Strategic Plan. The assessment and strategic action plan have been reviewed and approved by the Allied Arts Board and the Art Center Foundation with minor modifications. The foundation approved the transfer of$75,000 to the Art Store and program at its April 5, 2000 meeting. Environmental Status: None Attachments : ity Clerk's Page Number No. Description ..... ........................................ ................................................... ................................................... ................................................... 1 Strategic Plan 2 Excerpts from Financial Report re: deficit in Cultural Fund 3 FIS ......... RCA Author: RH:cr Art Center Assessment.doc -4- September 8,2000 2:51 PM ATTACHMENT #1 HUNTINGTON BEACH ART Goals, CENTER 2000Pearopm,4 2001 Busines-s- Changes STRATEGIC Marketing PLAN Organization Chart Fund-raisers Proposed Exhibition Schedule HUNTINGTON BEACH . ART Goals . CENTER ❑ Maintain the financial integrity of HBAC to enable it to serve the Community of Huntington Beach and 2000 beyond Increase the visibility of the Art Center in the Community of Huntington 2001 Beach Provide an opportunity for local, regional and national artists to participate in Art Center programs Provide a quality and broad-ranged program for adults and children of Huntington Beach and beyond Partner with the educational institutions in the community to improve arts education for children and adults ❑ Provide opportunities for community and business leaders to partner with the City to improve the cultural life and image of the City ❑ Foster community leadership in cultural endeavors ❑ Encourage cultural diversity in audience, artist and program development CITY OF HUNTINGTON BEACH Cultural, Historic and Events services Division Huntington Beach, California 2. HUNTINGTON BEACH ART Program CENTER Chanqes Modify the Art Center Mission 2000 Statement to reference "all media/all artists" and remove restriction to living artists only. 2 U`0 Broaden the program to include greater range and appeal, including: ' Exploring all types of contemporary art; Providing comprehensive educational materials for more challenging work. Add outreach programs for teens, including: ' Expansion of after-school programs on-site and at schools; Establish peer-mentor programs for high school students to work with younger students. 0 Increase participation of Huntington Beach residents in programs through: Expansion of classes for adults and children; Continuance of tours and lectures; Addition of family activities on weekends. CITY OF HUNTINGTON BEACH Cultural, Historic and Events Services Division Huntington Beach, California 3_ HUNTINGTON Business BEACH . ART Chanqes CENTER ❑ Formalize the Partnership and Sponsorship with the Art Center Foundation, and: 2000 ► Refocus Foundation support to program needs; Request $70,000 from the 20Uj` 1 Foundation for 1999-2000; ❑ Develop new revenue sources, by: Installing parking meters in Art Center parking lot; Expanding Art Center-sponsored fund raisers; Using state bond funds for building improvements; Implementing a Huntington Beach affinity credit card. 0 Develop corporate, business and government sponsorship, through: 0 Develop business and finance plans, and hire a part-time California Arts Council and account technician. Education Grants; Grants from GTE, Coldwell Banker, 0 Develop program budgets, and: Arts Orange County, etc.; GTE Summer Classic event. Identify all costs, including operational overhead; ❑ Restructure the Art Center Store, and: Identify income by program; Have the Foundation underwrite � Find underwriters for any the Store operations; programs without full cost � Establish a volunteer guild to run recovery. the Store; Expand merchandise. 4. Artist Designed Plates The curator will invite four artists to create an original design that will be made into original ceramic plates-A limited edition. The Art Center will publish the plates, hold a special dinner at the art center, and the remainder of the plates will be sold in the store. Approximate Plate Cost with Dinner to be determined Tentatively scheduled for: September, 2001 Auction A two-week exhibition and auction featuring local, regional, and invited artists zn for benefit. Approximate Ticket Cost S25) Tentatively scheduled for: ilid-Nlarch, 2001 Las Vegas Tour A tNvo-day adventure in Las Vegas. The Adventure includes the bus trip and accommodations but has an art tNi'ist. We will present lectures and slide presentations on the architectural differences between the REAL Italy and The BellagioNenetian The REAL Monte Carlo, and the Monte Carlo The REAL New York City, and New York, New York Approximate Ticket Cost $200 Tentatively scheduled for: April, 2001 Artist Studio Tour A self-driven tour of local artists at work in their studios. This event will coincide with the Centered on the center Exhibition 2001 Approximate Ticket Cost $20 Tentatively scheduled for: January, 2001 12. PROPOSED EXHIBITION SCHEDULE MIDIN 0 b 0 D;MFITA "Gallery Program" Exhibitions of local, regional, and national artists "Art in Store" Exhibitions and sales of emerging artists' works featured in the Art Center- Store "Performance Art" - Working Title Original performance art including dance and movement "Video/Film" - Working Title Original, historic, and educational video and 1-11m screenings "Art at the Beach" Children's Art Camp — Week long sessions in visual art, performing art and educational activities for youth ages 6 — 11 in weekly sessions "Classes and Workshops" Multidisciplinary educational classes for youth and adults "Tours" One-day or longer tours to art places "Poets and Writers" - Working Title Mornings, afternoon, or evenings with readers and conversation "Lecture Series" Scholars, historians, or community members invited to speak on particLilar topics related to the concurrent gallery exhibition or another program "After-school Art Program" Artists teaching art after-school at various school sites Artists teaching art after-school at various organizational sites "Art Education program" Workshops or classes designed for teachers to learn how to teach art to their students "Artists' Talk in the Gallery" Art discussions with the artist(s) currently on exhibition V L Jk 1J 1J 1'J.l%- JL 1 J.\V V-&V L-A,1 T 1 1J%-,111J 1J IJ.A--J." Aw V V V / i V l 1\l l l IJ%..11%,%A LA A c.J If the exhibition title is all in CAPS, the title is set. Usher and lower case denotes working title. # of weeks Dates Exhibition w/description Reception Date Location 6 Jan. 23 - March 4 CENTERED ON THE CENTER Open-Call, Non-juried group exhibition Sat. 1/22: Open Rec., 7-9 Galleries 1, 2, 3 Sat. March 4: Close Ree. 7-9pm 8 March 19 - May 14 SELECTED SURVEY Michael Aschenbrenner Sat., March 18, 7- 9pm Galleries 1,2,3 WORKS FROM TIIE PACIFIC CAMPAIGN Dean DeCocker Artist's Talk in the Gallery Sat. April 1, 2 - 4pm 8 March 19 - May 14 DOGMATIC Sat., March 18, 7 - 9pm Center Store Max Prothro 2 April 29 - May 14 PI oTOGIZAPI-IY & 1N%IULrhI-11/IEDIA EXHIBIT Sunday, May 7, Awards at 1-open 12-4pm Hallway Imagination Celebration of Orange County multi-purpose 7 May 28 - July 16 PANORAMA'S BOX Saturday, June 3, 7 - 9pm Galleries 1, 2, 3 3-Person Landscape exhibitiori Matthew Brown, Steve Comba, Lhida King 7 May 28 - July 16 "Art in Store" featured artist, Douglas Bloom Center Store 6 July 30 - Sept. 10 Fiber Arts, Including Paper Saturday, July 29, 7 - 9pm Galleries 1, 2, 3 Group exhibition 2 Sept. 23 — October 8 Art Camp Youth Art Exhibit Sat., Sept. 23, 4— 6pm Galleries 1, 2., 3 Youth art featured from summer art camp 3 Oct. 22 — Nov. 12 Altars, Installations, Paintings Sat., October 21, 7—9pm Galleries 1, 2, 3 This altar exhibit will correspond to classes and outdoor events for youth and families. Mask-making, boxes, etc., surrounding Halloween and Day of the Dead Sun. October 29, 12—2pm Above is a Special Event Parking Lot Wed. November 1, 7— 9pm Above is a Special Event Galleries 1, 2 3 Oct. 22 — Nov 12 Crayola Dream-lnalzers Exhibit Sat, Oct. 21, 7 —9pm Gallery 3 6 Nov. 26 — Jan. 7 White Pa i ll ti ngs Sat., December 2, 7 — 91)m Galleries 1, 2 Invitational exhibition Nov. 26 — Jan. 7 2-person exhibition Sat.,Deceniber 2, 7-9pm Gallery 3 Featuring 2 artists selected f'rom Centered on the Center `00 Dec. 1 "A May without Art" Friday, December 1, 7-9pm Above is a Special Event There will also be a concurrent exhibition in the Art Centel- Store. ATTACHMENT #2 Huntington Beach Arts Center Summary of operations from first year opened Schedule A Year Ended September 30, 1995 1996 1997 1998 1999 Revenues $ 110,000 (1) $ 316,000 (2) $ 132,000 $ 258,000 (3) $ 104,000 Expenses (393,000) (388,000) (375,000) (359,000) (308,000' Depreciation (27,000) (3,000) (12,000) Cumulative change in acctg.principle 25,000 Net(deficit)before operating fund transfer (283,000) (99,000) (221,000) (113,000) (204,000) General fund transfers 27,000 81,000 81,000 89,000 120,000 Net operations (deficit) after transfer $ (256,000) $ (18,000) $ (140,000) $ (24,000) $ (84,000) Accumulated deficit per City F/S $ (256,000) $ (274,000) $ (414,000) $ (438,000) $ (522,000) Accumulated deficit excluding Art Center Foundation revenues $ (347,000) $ (575,000) $ (715,000) $ (839,000) $ (923,000) (1) believed to include$91,000 from the HB Art Center Foundation (2) believed to include$210,000 from the HB Art Center Foundation (3) believed to include$100,000 from the HB Art Center Foundation The Huntington Beach Art Center opened on March 28, 1995 Huntington Beach Arts Center Foundation Funds Remitted to the City of Huntington Beach Schedule B BYDATE Date Amount 3/18/92 a $ 359,623.89 11/20/92 b 50,000.00 12/29/92 b 11,975.10 1/15/93 b 195.00 10/12/93 c 75,000.00 9/27/94 c 50,000.00 10/4/94 d 91,000.00 11/7/95 e 55,000.00 4/2/96 e 55M0.00 10/23/96 f 100,000.00 3/2/98 g 100,000.00 $ 947,793.99 BYFISCAL YEAR Date Amount 9/30/92 a $ 359,623.89 9/30/93 b 62,170.10 9/30/94 c 125,000.00 9/30/95 d 91,000.00 9/30/96 e 110,000.00 9/30/97 f 100,000.00 9/30/98 g 100,000.00 9/30/99 $ 947,793.99 * Amount appears to be included in fiscal year ended 9/30/96 in the City of Huntington Beach audited financial statements as a receivable and related revenue Huntington Beach Art Center Total Renovation Costs Schedule C Name Amount Contruction Costs Lewis Jorge Construction Management, Inc. Contract costs with change orders $ 794,776.50 Supplemental expenses 15,748.41 Lawsuit settlement 320,000.00 Total $ 1,130,524.91 Team Construction Contract costs with change orders 190,573.20 Supplemental expenses 62,247.46 Total 252,820.66 Total Construction Costs 1,383,345.57 Construction Management Services Fundament&Associates 62,890.00 Kleinfelder, Inc. 1,752.50 Total Construction Management Services 64,642.50 Architectural Fees Thirtieth Street Architects 90,882.13 Total Renovation Costs 1,538,870.20 Less: Planning Costs provided by the City (70,000.00) Less: Payments received from the Art Center Foundation to the City of Huntington Beach (947,793.99) Remaining Amount Owed to the City of Huntington Beach by the Huntington Beach Art Center Foundation assuming that the Foundation is responsible for all construction costs $ 521,076.21 *Note that only$1,249,000 is recorded as capitalized building cost for the Art Center as of the September 30, 1999 audited financial statements of the City of Huntington Beach ATTAC H M E N T #3 CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION To: Ray Silver, City Administrator From: John Reekstin, Director of Administrative Services Subject: FIS 2000-60 Approve Art Center Reorganization and Strategic Action Plan Assessment Date: August 29, 2000 As required by Resolution 4832, this Fiscal Impact Statement has been prepared for "Approve Art Center Reorganization/Strategic Action Plan/Assessment". If the City Council approves this request of which $522,000 comes from the General Fund to close out the accumulated operating deficit, and there is the forgiveness of debt that is due to the Park Acquisition and Development Fund from the Cultural Arts fund and the Library Services Fund. If the City Council approves this request the estimated unreserved, undesignated General Fund balance at September 30, 2000 will be reduced to $8,860,795 and the estimated unreserved balance of the Park Acquisition and Development Fund will be reduced to $441 ,000 at September 30, 2000. hn Reekstin, Director of Administrative Services Fund Balance-General Fund Adopted BudgetCurrent s ima e Beginning Fund Balance 10/1/99 (audited) $ 11,734,000 $ 19,291,000 Plus: Estimated Revenue 114,110,841 114,110,841 Less: Estimated Expenditures (120,169,841) (120,169,841) Pending/Approved FIS's: - (3,849,205) Less: FIS 2000-60 - (522,000) Estimated 9/30/00 Balance $ 5,675,000 $ 8,860,795 ESTIMATED GENERAL FUND BALANCE - SEPTEMBER 30, 2000 $9,000,000 - $8,000,000 -� $7,000,000 -� $6,000,000 $8,860,795 $59000,000 -� i $4,000,000 -� $5,675,000 $3,0001000 $2,000,000 -� $1 ,000,000 V $_ -, / ADOPTED BUDGET CURRENT ESTIMATE RCA ROUTING SHEET INITIATING DEPARTMENT: Community Services SUBJECT: APPROVE ART CENTER REORGANIZATION/STRATEGIC ACTION PLAN/ASSESSMENT COUNCIL MEETING DATE: Sept. 18, 2000 ........ ......... ._.._ ........ ........... ...... - ....... ..._........ .. ........ ......... . . ... ...........RCA ATTAC H M.EN. - .. ......:. ..TATU Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement Unbud et, over $5,000 Not Applicable Bonds If applicable) Not Applicable Staff Report If applicable) Attached Commission, Board or Committee Report If applicable) Not Applicable Findings/conditions for Approval and/or Denial Not Applicable EXPLANATION FOR;M.ISSING ATTACHMENTS REVIEWED .. RETURNED: FORWARDED Administrative Staff Assistant City Administrator Initial ` City Administrator Initial City Clerk L- EXPLANATION FOR RETURN OF ITEM: �� �. ,a ;;%rr,+FFNr/rr....:F:: FF "'3J� City COUNCIL SEPTEMBER 18,2000 Y ................I .......... ? way . ■ Agenda Item F 1 . A. Proposed d Art Center Strategic Plan nii! B. Proposed osed Community Cultural Arts Grants Program C. Proposed Financial Corporate Partnership 'Surf City Credit p P p tY i•:iv4v:Fi>Livv:i:: . }' Card" Program .::. .Fi::•.v`::v4:•i:•v::L:-' �. vr.�'i��4:-��t r. v vf. 'r' yrN SF i A: Proposed Art Center Strategic Plan < € .v<> s: Art Center was reorganized o r a n i z e d i n July I 1999 . , 9 Y • Budget was reduced from $380,000 to $280,000 A year long program assessment was completed by an f $:; outside consultant with community input A new strate is Ian for staffing, programming and 9 p 9� p 9 9 funding the Art Center has been prepared Th e Art Center has had a successful year with a greater r f emphasis on teen and children's programming With theArt Center Foundations donation f 0 80 000 .. �'"}` �� this year revenue matched expenses '•\v.;}:}tiff{Y:::i i:iti'•..i..:... S. 1171 A: Proposed Art Center Strategic Plan f; : • the Art Center program to meet the i Plan refocuses Strategic c P 9 needs of the Huntington Beach community Th ass es sme nt a nd co m mu ni in ut sh owed d tha t the e community wants more local and regional exhibits, classes, r" r wor kshops, hop s teen a nd c held e n s programs 9 ms staff from four full The strategic plan reduces the Art Center time personnel to two full time personnel plus the support of the Cultural Services Division staff ri 280 000 with the Art Ce me s r e t $ s bud get et for th The base e , 9 kt`:. w `? City contributing $100,000, the Art Center Foundation •r $75,000 and the remaining $105,000 coming from program income 4 New proposed programs and fund raising activities could increase rease thi s level, I if successful ,• but will not be ap propriated priated until the revenue is received ...... «.... 3. ?, S. „t = = Proposed Art Center Strategic Plan While expenditures were within appropriations for the first µ ^ti.4s`w`<``% ' five ears of operation,, revenue was over estimated and : :,.:. ,t.:.:. . Y p { never materialized, thus resulting in an accumulated five year deficit of $522,000 in the Art Center Fun d The strategic plan reduces both the revenue projections { and expenses to the actual historical level of Art Center operations } fees f development comes from The C i s contribution Which are projected to decrease in future years • ...........M- Staff is recommending n in9 that the City level of support be f level o e recommended i Ian at the strateg ic stabilized i4'titi•:tiitiv:`::: Q ti4ivw..tiQ.::: 4. .N..;;: F1 A. Proposed Art Center Strategic Plan v1:: It is recommended that Council close out the Cultural Fund into the General Fund and provide the City support from the General Fund } = This would eliminate the Art Center deficit of $522,000 which would reduce the General Fund una ro riated fund p p p balance by the same amount • If Council approves the Surf City Credit Card program, p p tY p 9 f t is successful, and i i e sful City support for the Art Center would come from both the Development Fee income and the Credit Card revenue NO 5. plammzW k.vxtA ,ii i'll 1171 A■ Proposed Art Center Strategic Plan =u : Both the Art Center and the Central Library expansion projects had construction proble ms Mich resulted in change : 4 orders requiring additional funds ...... :. : : PA&D funds were used for both projects, $194,000 for the sy � Art Center construction, and $290,000 for the Central Library x n n ep a so • Although both projects are eligible for use of PA&D funds, Council s a to havethe ArtCenter an d pre i �onwas -raisin g 9Library paY back thePA&DFand from future fund activities After five years, it doe sn't n tapp appear that either facility will be able to raise enough revenue to cover their operations and A&D fund service and payback P xv : Proposed Art Center Strategic 1171 is Plan A p J that Council not have the Art ::.................:.....::: Therefore it is recommended .. ;xww;::,Y: ` rw~ Center or Library repay the PA&D Fund • ' This action will not affect any Acquisition uisitionand y Development funded project • r o n e Library t a dth IICenter ' nwillaw both the Art o This actin assure future donors and grant organizations that donations and grants will not go to repay old construction costs that D Fund u d nt b the PA e &for payment we re el igible ible o m pv v g s . . ...:............. .�� :..:.::::...... .. ..:::::.. . :v . --` ............... '�%/ ................ 'f .ff ..J ' '•'�,r. .;� .11.'l F w-� t.d ' i 3: : :�•Nti:I�::i <sa r :rfs y4 :sN{""S 1171 B: Community Cultural Arts Grants Program s{ .vl iu3ii iv}tV }{;A Provides r a method for local thH u Huntington Beach arts and .::. . ....: Pg cultural organizations to apply to the City through the Allied Arts Board for annual grants � :�... Funding will co me m the applyin g for State and Federal grant money to be allocated to local Huntington Beach rorganizations a t and from the proposed Financial p p Partnership/Surf City Credit Card Program ill insure enotA local communityCultural Grant Program v : :::. . :°' only the City's quality of life but increase opportunities to attract tourists and visitors ............. ................:. ....:......:.v.:::.. \4 - Y if l� {ii{{ // ii{� S i'.S r O.,