Loading...
HomeMy WebLinkAbout06/02/1998, C4 - REALLOCATION OF UNSPENT FUNDING FOR THE PERFORMING ARTS CENTER (PAC) council 2 19 j acenaa nepoRt ItemN=.6w CITY OF SAN LUIS OBISPO FROM: John Dunn,City Administrative Offic� Prepared By: Wendy George,Assistant to the City Administrative Officer kly SUBJECT: REALLOCATION OF UNSPENT FUNDING FOR THE PERFORMING ARTS CENTER(PAC) CAO RECOMMENDATION 1) Approve the reallocation of$5,000 in unspent 1997-98 PAC Capital Improvement Program (CIP)finds to be used to create office space for PAC technical staff,and 2) Approve the reallocation of$15,000 in unspent PAC 1997-98 operational subsidy funds to increase the 1998-99 operational subsidy from$50,000 to$65,000. DISCUSSION Background In 1989, the three parties involved in building the PAC formally agreed that the land would be donated by Cal Poly and facility construction costs would be paid 2/3 by the University, 1/6 by the Foundation and 1/6 by the City. Additionally, an Operational Agreement was signed by the three parties which requires that the Foundation and the City share any necessary on-going operating subsidies on a 50-50 basis. As a result of these two agreements, in its 1997-98 budget the City created a CIP to purchase additional equipment for the PAC and also allocated funds to provide a subsidy for that year's operations. At this time, fimds remain in both accounts. Two requests have been received from the PAC's managing director to reallocate these fiords to additional PAC expenses. ReaIIocation of CIP Funds to Create Office Space The original 1997-98 CIP request from the PAC was for $70,000 to be used to purchase a very specific list of equipment, much of it related to audio and lighting needs. The City's actual 1/6 share of the cost for this equipment and fixtures turned out to be only $65,000, leaving $5,000 in the CIP budget for this project. The PAC has requested that the City allow the remaining $5,000 to be used to convert the Pavilion control booth to an office with three work stations to house the administrative portion of the technical staff Office space at the PAC has been inadequate from the beginning. There are six full-time employees who manage the PAC's technical requirements currently worldng without a permanent office. The administrative staff person responsible for payroll, estimating, scheduling, billing and human resources shuttles between a little comer in another employee's office and the extra ticketing location when she needs a computer. There is no permanent space for a phone,or to set up and organize work in an uninterrupted manner. Nor are there computers available for.the two part-time assistants. A control booth located in the Pavilion has proved to be an impractical location for lighting and sound control for events in that location. The PAC's managing director is proposing that it be Council Agenda Report-Reallocation of Unspent PAC Funds Page 2 converted to office space for the technical staff instead. Three workstations could be created within the proposed space by the addition of partitions, purchasing one computer and upgrading and repairing two existing computers. The PAC's proposal indicates that the $5,000 remaining in the original equipment CEP would be sufficient to purchase the necessary office equipment and materials. (See Attachment 1.) While the other two partners would not be sharing in the cost of this particular project, both Cal Poly and FPAC have contributed money for other capital projects during this past year in an effort to meet the most critical operational needs of the Center. Reallocation of Remaining 1997-98 Operational Subsidy Funds to Increase the 1998-99 Operational Subsidy Since the 1995-96 fiscal year the City has been providing a financial subsidy to the operations of the PAC. This is pursuant to the terms of the three part Operational Agreement. At the beginning of each fiscal year, based on the projected shortfall, the City has made an up-front payment to the PAC toward annual operation expenses. At the end of the fiscal year, the City has then made up any remaining operational deficit not covered by the initial payment. In all instances, the City's contribution has been matched by an equal one from the Foundation for the Performing Arts (FPAC) in accordance with the Operational Agreement. The City's share of the up front operating expense for 1997-98 was $65,000. At the end of the fiscal year, the City's share of the ending deficit for 1997-98 was $18,000, whereas, $35,000 had actually been budgeted to cover the ending deficit,so there is still$17,000 remaining in the 1997-98 ending deficit account In the 1997-99 Financial Plan, the fiscal year subsidy for 1998-99 is budgeted at $50,000, a reduction from the prior year. The PAC has requested that the City again increase its initial operations expense contribution to $65,000. The PAC's managing director has identified several areas where the PAC's operations are still dysfimctional and need improvement to bring about financial equilibrium. Attachment 2 details area where the managing director believes operating efficiencies can still be instituted. If the City were to increase its beginning year subsidy by$15,000, that amount would be matched by FPAC. The combined $30,000 total infusion into the PAC's 1998-99 budget would allow the budget to be balanced and would reduce the required year-end operational subsidy. The result would be a more effective fiscal operation. Staff is proposing that $15,000 of the $17,000 remaining after paying the 1997-98 deficit be reallocated to increase the 1998-99 up front operational contribution. Both Mayor Settle and Alternate Kathy Smith are generally familiar with the PAC's financial situation and with the solid efforts of the Commission this past year to deal positively with the Center's finances. FISCAL EWFACT • $5,000 remains in the 1997-98 PAC equipment CIP which can be reallocated to create office space. • $17,000 remains in the 1997-98 PAC operating subsidy line item which can be used to fund the requested$15,000 subsidy for 1998-99. Therefore, this request represents a reallocation of monies already allocated for the PAC and no additional allocation is necessary. Council Agenda Report-Reallocation of Unspent PAC Funds Pie 3 ALTERNATWES If either or both requests are denied, the remaining budgeted amounts will be returned to fimd balance, and the office space needs and the up front operational expense would have to be resolved in some other way. In the case of the latter, it would most likely show up as a required operational subsidy at the end of the fiscal year. Attachments 1 -Request for office space fimdmg 2-Request for operational subsidy r y -4- MM& PERFORMING ARTS CENTER S a n L a i a O b i s p o Date: May 7, 1998 /� To: John Dunn !e, City of San Luis Obispo Chief Administrative Officer 1�y - From: Ron Regier C%t %i J Managing Directo �a/�jy9f `9'9B O Re: $5,000 CIP proposal 6741 I am responding to your recent communication concerning the possibility that$5,000 in city CIP money,originally allocated to PAC projects,may be available to us. I have solicited proposals from each of my senior managers,reflecting the greatest capital need in their respective departments. The most compelling request of the three is for a space conversion project to create adequate office space for technical administration. I have attached the request as prepared by Administrative Assistant Joan Strom and I believe it speaks to the immediate needs. I want to communicate some historical perspective. It has been perfectly evident, from my first involvement with the PAC,that the architect either had the notion that it would take very few people to manage the center,or he had no notion at all. Office space at the center is woefully inadequate. This is especially true for the technical area. While it takes six full-time employees to manage the center's technical requirements,there exists merely one tiny office. Our tech staff has managed to carve another space out of the emergency services room,but need space and equipment for Ms. Strom to perform her duties as administrative assistant, as outlined in the proposal. I am certain that the control booth for the Pavilion was originally conceived to double as an office. I remember seeing plans with that room identified as office space. Now, since using that space for lighting and sound control for events in the Pavilion has proved to be impractical,it.is imperative that.we transform it into a space with practical application. I believe the use of that space for technical offices makes terrific sense. Please let me know if this proposal meets the criteria required for use of the CIP money. Thanks for your consideration. ' — A Grand Avenue T I San Luis Obispo,California 93407 (805)756-7222(SLO-PACC) s ` Fax(805)756-6088 MEMORANDUM To: Ron Regier Date: May 1, 1998 From: Joan Strom Re: Office Space Due to the design of the building the technical services area has virtually no office space. I originally carved out space in the alarm panel/security room along with the technical director,other technicians and the crew restroom. I am in charge of payroll,estimating, advancement, scheduling and billing and human resources. It is critical that I have an adequate work space to perform my job. My duties are extremely detail oriented and I must have an area that I can set up,organize and work as uninterrupted as possible. Also, since I am in continual need of assistance,two additional workstations are needed for two assistants who work simultaneously under my direct supervision. Since the fire alarm technicians reclaimed the space I was using for an office, and my motherboard stopped working, I have been hovering between a little comer in Jim's office and the extra ticketing area in the administrative offices for a working computer.My current situation has been very distracting not only to me but to all the other employees I disturb throughout the day in order to get my work done. I am currently borrowing a work space in ticketing, having my calls followed to Terry's desk,and checking my open mail on anyone's computer I can grab at the time(the phone at the ticketing workstation I am using does not have voice mail and the computer does not have open mail). Although my computer will be fixed and I will be able to move back to Jim's office soon, I do not W that this is an acceptable solution. There is not enough space in Jim's office for both of us. So far,Jim has been gracious in letting me invade his space and we have been able to make it work, but it has been difficult. Our jobs require so much communication by phone and in person with various colleagues, clients,employees etc.that we are interrupted constantly by each others interactions. Also,because the fire alar is in the process of being rebuilt and this will go on for an indefinite period of time, moving back to the alar panel room is not an option Since the pavilion control booth is not functional as a control location(i.e.poor location,sound proof,sound and lights are better operated from down in the space), a possible solution to our desperate need for office space could be to convert the pavilion control room to a technical office area with three workstations. The dose proximity to the administrative area would be an added benefit for me since I interface regularly with all of the front of house staff. Ron Regier May 1, 1998 Page 2 Needs to Convert the Pavilion Control Booth to an Office with Three Workstations: Station 1 (Joan's Workstation) Est Cost Computer- Network connection,TKC,Zip Drive, 170 screen Printer $3,000 Station 2(Administrative Assistant 1)and floater production office* Computer-Fix Joan's existing $ 450 Station 3(Administrative Assistant 2)and floater Tech office** Computer-Upgrade existing floater $ 300 All Stations 3 chairs Privacy Partition Task Lighting 3 phones(can use the 1 e)isting),with hookups Black out curtain Bulletin Boards Fling Cabinets Drawer Units Worktables $1250 Grand Total $5,000 * Station 2 could be used as a production workstation as needed. **Station 3 could be used by Tom McPherron or Jon Bogh as needed. " •ter' \. PFRFORMING ARTS CF-NTFR . S a n L u i r 0 b ! r p o �� • March 11, 1998 , John Dunn C%t �� pe 0 Administrative Officer1�Q f r99a �a . City of San Luis Obispo %j% Q 990 Palm Street d&0 San Luis Obispo, CA 93401 00 Dear John, During last year's city budget process, the city council approved.a$50,000 allocation for operating support for the performing arts center during our 1998-99 fiscal year. While this is greatly needed and appreciated, I am concerned that the decrease it represents,from $65,000 this year, will have a negative impact on the success of center operations and programs. On behalf of the Central Coast Performing Arts Center Commission, I would like to request that the allocation remain at$65,000 for next year. As you have mentioned numerous times, it will take several years for the center to balance its operational requirements'and its sources of revenue. I'm pleased to note, however, that we appear to be on course toward a better financial result than last year's modest $36,000 operating deficit. A decrease in operating support for next year from the city could substantially affect our ability to find equilibrium. I have identified several areas of center operations where we are dysfunctional and need improvement. Among them are: 1. Financial record-keeping—the part-time bookkeeping position needs to go from part- time to full-time in order to keep on top of the mountain of paperwork which ultimately generates financial settlements with client groups for every performance. 2. Ticket office—Because of lack of facilities, equipment, software, licenses and staff; patrons still have too much trouble reaching the center to place ticket orders. 3. Marketing—the center needs to establish an advertising budget to promote all events through the local newspapers. 4. Technical costs—in part,technical costs are higher than we'd bice because supervisors are hourly and quickly go into over-time rates; charges passed along to the client groups. It would be beneficial to hire two salaried,full-time supervisors,therefore reducing the over-time and lessening costs to client groups. ter:•: = ATA�HMENT 2 ' Grand Avenue San Luis Obispo,California 93407 �+ (aos)7s6a222 csLo-PAcc> ,''i,.\ Fax(605)7§64M 07 - _ r There are other needs as well. I believe we can accomplish much of what is required by making re-allocations within the context of current resources. However,budget - reductions would mean that it would be difficult, if not impossible,to make the necessary improvements to the operation. In addition, by informal agreement last year,the Foundation for the Performing Arts Center plans to match the city's contribution. This means that the net decrease would be $30,000, a reduction the center can not absorb without serious consequences. Thanks very much for your help. Please let me know if there is anything else I need to'do at this time. inVel Managing Dire or ;L �F