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Home My WebLink About11/20/2007, C7 - FUND BALANCE APPROPRIATION 1 council M.1im j agenda REpont CITY O F SAN LUIS O B I S P O FROM: Deborah Cash, Administrator SUBJECT: FUND BALANCE APPROPRIATION CAO RECOMMENDATION Approve use of Downtown Association fund balance to cover operating expenses, both expected and unexpected. DISCUSSION The Downtown Association requests Council approval to transfer funds in the amount of $41,700 from its reserve (fund balance) account to cover expenses that have been incurred, or will be incurred, as a part of normal operations. At the end of the previous fiscal year, the Downtown Association deposited into the fund balance monies from two sources: overages in income and unexpended expenditures for a total of $47,498.93. Because this was the end of a two-year budget cycle, the funds were automatically deposited into the reserve and not carried over. Therefore, per policy, the Downtown Association must formally request a transfer to access the funds. Requests for use of fund balance include: 1) Attorney fees for establishing the Downtown Association as a non profit: in order for the Downtown Association to begin the process of restructuring as a non profit, legal services to file the necessary paperwork with the Secretary of State were required. An attorney, Chris Dietrich, was hired in August and has nearly completed the process. While the Downtown Association, during its budget setting process last year, had anticipated that it may become independent from the City, it was not yet determined how or if that would occur and so no dollar amount could be assigned to this need at that time. 2) Conduit for electricity for Thursday Night Promotions: The Downtown Association, as part of its restructuring of Thursday Night Promotions desired to provide electrical services to vendors. In working with the City to develop this process in the existing infrastructure, it was deemed possible to lay conduit underground on Higuera Street near Broad Street during Project: Higuera to accomplish this. The amount of this project was determined by the City and is being charged to the Downtown Association. This project, or at least some version of it, was anticipated but not funded in the current budget. 3) Strategic Plan consultant fees in excess of the original contract: When consultant Jeffrey Eichenfield's contract ended in early 2006, there were items in the Strategic Plan that needed further study, analysis and development, including producing a final report. The Strategic Plan, having resulted in far more than simply being an update, was considered an important investment in Downtown's future and the Board of Directors approved funds (On two separate occasions) to have the consultant finish the project. This was an unanticipated expense. 4) An anticipated lease rate increase: The Downtown Association had not had a rent increase in two years and while it anticipated an increase, did not have information from the landlord as to if there would be an increase or what that amount would be until October of this year. 5) Office expansion and necessary equipment: The Downtown Association has needed more office space for some time and had arranged with the landlord to occupy an additional suite when the current tenant moved out. However, that tenant has been unable to provide a date of vacating until recently and it appears the space will be available in December. The suite will be used for conference facilities and storage. 6) Paying off the Concerts in the Plaza stage: The Downtown Association purchased a portable stage for Concerts in the Plaza three years ago. At that time, the interest rate on the loan was fairly low however it has more than doubled during that time and by paying off the balance on the loan, considerable savings are realized. 7) A contingency: Because some of the costs are not exact, particularly with regard to office supplies and equipment for the expansion, having a contingency allows for having sufficient funds should the amount be more than anticipated, . The current budget was prepared in April, 2007. At that time, some of these expenses were anticipated yet with costs not known and some were not anticipated. Due to the large amount of funds remaining at the end of the fiscal year, it is reasonable to expect that those funds would be available to cover costs that have arisen. CONCURRENCES All of these expenditures have been deemed necessary and approved by the Executive Committee, with anticipated approval by the Board of Directors at its November 13 meeting. FISCAL IMPACT Funds are available in the Downtown Association budget to facilitate this request. As the Downtown Association budget is discreet from the City General Fund, there will be no impact to the City. After transferring the requested amount, $43,260.88 will remain in the fund balance. ALTERNATIVES 1. Deny the request This is not recommended as some of the expenses listed have already been incurred; all of the expenses listed are necessary for the Downtown Association to carry out its programs and move forward with the restructuring process Attachments Attachment 1 - Budget worksheet Attachment 2 - Minutes of Executive Committee meeting, November 6, 2007 EX, AIT PAGE OF_L`: SLO Downtown Association Expenditures needed funding from Fund Balance November, 2007 501 (c) 6 filing and fees $3,500 Conduit for TNP electricity $3,500 Jeff's contract $7,000 Lease increase $5,000 Proposed rent$1535/mo (Dec—June) 10,745 (budgeted$865 mo Dec -June) -6,055 Difference 4,690 Office furniture $10,000 Conference table/chairs Computer Front counter Cash register File cabinets Stage pay off 8,700 Total $37,700 + contingency 4,000 Total request $41,700 EXh�dIT. PAGE OF SLO Downtown Association Executive Committee 6 November 2007 Downtown Association Office Minutes Present Pam Seeley Patty Carpenter Tom Copeland Tom Swem Deborah Cash, staff Mark Rawson, guest Call to order 9:10 AM. Motion to approve minutes by Carpenter, 2"d by Copeland, PAIF. Chinatown Review Rawson said they have been asked to prepare a sidewalk improvement plan as part of the EIR mitigation for sidewalk surrounding project. They are currently preparing a"discussion draft"prior to Planning Commission, ARC (19'h November) and Council. Draft EIR has already been reviewed by PC, final to go to PC on 28 November; met with CHC two weeks ago, they were pleased with changes. Expecting in plan: anything that happens in that domain up to the edge of the property. Parking, commercial loading zones, changes in sidewalks. No sidewalk widening proposed; city goal is 8-ft clear walkway, their project sidewalks vary between 9— 11 feet, more than 8 ft in most cases, narrower along side streets, maybe 7 ft by trees. Meeting all parking requirements for providing parking, keeping existing loading zones Trash will be underground and trucks will be able to access that through a roll up door Tile band around edge but not between slabs, Seeley suggested using Bruce Fraser's recommendations regarding sidewalk style as Mission style has issues. Swem said to pass along this information to Board. Plans are available at the City and Rawson will provide a set of plans to the office. Litigation No news to report at this time. r • EXH161TI- PAGE LOF�- Project Higuera Update Cash reported the project is mostly done, street lights will be installed in a few weeks Holiday Shopping Guide Cash reported sales for ads are down; Seeley said to ask about where guide is inserted in paper so people don't just toss it with the other inserts Criterium Representatives will address board next week. Holiday Activity Update Many events planned and ready to go, volunteers needed By Laws Cash reported Econ Act subcommittee drafted new bylaws, will forward to Board for approval next week. Copeland said most changes are related to removing references to municipal code, very basic. Use of Fund Balance Cash reviewed proposed expenditures where use of fund balance is needed. Motion by Swem to adopt fund appropriation request, 2nd by Copeland, PAIF. Restructuring Timeline Cash reviewed tasks to be completed over next few months; Swem said important to make the point of being autonomous from City requires giving up subsidy. Board meeting date change to December 4, no Exec Com in Dec. TNP December 26 and January 2 (Fridays) in 2008 Committee agreed to change dates. Meeting adjourned 10:15 AM. Prepared by D.Cash 11-6-07 RECEIVED RED FILE MEETING AGENDA NOV 1 20th] ,,�:� MEMD>RAIV�UM DA II o ITEM # G'7 SLO CITY CLERK City of San Luis Obispo TO: City Council VIA: Ken Hampian, City Administrative Officer ✓'�� FROM: Deborah Cash,Administrator, SLO Downtown Association SUBJECT: Red File—Fund Balance Appropriation Request For your information,please find attached the draft minutes of the SLO Downtown Association Board of Directors meeting of November 13 showing Board approval of the Fund Balance Appropriation request on the November 20 Council agenda. W-COUNCIL CDD pI4 C PCAO FIN DIR Q ACAO FIRE CHIEF aATTORNEY PW OIR 1?CLERIg0RIG POLICE CHF 0 DHEADS ;OEC DIP Z UTIL-DIR M�®IR ,. ldo vee K 64-0 w do�,�ti SLO Downtown Association DRAFT Board of Directors 13 November 2007 City Council Hearing Room Minutes Present Pam Seeley Ellen Henry Tom Copeland Bob Seeley Tom Swem Alex Gough Patty Carpenter Doug Shaw Bob Schinkel Natalie Tartaglia Roy Mueller,ex officio Carl Dudley, ex officio Deborah Cash,staff Brent Vanderhoof,staff Katie Hollingsworth,staff Diana Cotta,staff Shaba Mosheni Ishii Horowitz Shelly Stanwyck Christine Dietrick Claire Clark Lindsay Miller Call to order 7:35 AM by Seeley. No public comment at this time. Motion to approve consent agenda items(a) minutes(b)fund balance appropriation request by Henry,2°d Swem,PAIF. Criterium Review Moshem and Horowitz reviewed the 2008 Cycling Classic Weekend handout;new date of July 5—6, reflects changing to accommodate calendars of other events,races Would like to invite a celebrity