The URL can be used to link to this page

Home My WebLink AboutReso 78-2016 (16-303)City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA Resolution: RES 78 -2016 File Number: 16 -303 Enactment Number: RES 78 -2016 RESOLUTION APPROVING THE SOUTH SAN FRANCISCO CONFERENCE CENTER AUTHORITY BUDGET FOR FISCAL YEAR 2016 -2017. WHEREAS, the South San Francisco Municipal Code § 2.78.100 requires that the South San Francisco Conference Center ( "Conference Center ") budget be approved by the City Council; and WHEREAS, the South San Francisco Conference Center Authority ( "Conference Center Authority ") conducted a public meeting and reviewed the Fiscal Year 2016 -2017 budget ( "Budget "); and WHEREAS, the Conference Center Authority found that the 2016 -2017 Budget represented the appropriate level of expenditures for Fiscal Year 2016 -2017 and recommended that the City Council approve the proposed Budget; and WHEREAS, the City Council concurs with the Conference Center Authority's recommendation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco ( "City Council ") as follows: The Conference Center Fiscal Year 2016 -17 Budget attached hereto showing a total revenue projection of $3,770,394 and a total expenditure request of $3,206,315 is hereby approved. The capital project request of $361,500 included within the Budget is hereby approved. Each budget category listed in South San Francisco Municipal Code § 2.78.106 is funded to the limits specified in the Budget. The funds collected pursuant to South San Francisco Municipal Code §4.20.035 are hereby appropriated to fund the Conference Center Budget. The City Manager and the Finance Director are hereby directed and authorized to make the specified funds available to the Conference Center. Copies of the Conference Center Budget shall be made available for public review and inspection in the Offices of the City Clerk and the Administrative Offices of the Conference Center. Page 1 File Number. 16 -303 Enactment Number. RES 78 -2016 At a meeting of the City Council on 6/22/2016, a motion was made by Richard Garbarino, seconded by Liza Normandy, that this Resolution be approved. The motion passed. Yes: 5 Councilmember Normandy, Councilmember Garbarino, Councilmember Matsumoto, Vige Mayor Gupta, and Mayor Addiego Attest Page 2 SOUTH Sal FRANCISCO CONFERENCE C.EN,rER South San Francisco Conference Center Authority Fiscal Year 2016 -2017 Budget As Recommended to the South San Francisco City Council By the South San Francisco Conference Center Authority Board June 22, 2016 255 South Airport Boulevard South San Francisco, California 94080 -6703 650 -877 -8787 Wt"- ssfconf.conn South San Francisco Conference Center Fiscal Year 2016 -2017 Budget Revenue and Expenditure Projections - All Sources Total Revenue Total Expenditures Surplus FY 16 -17 Proposed Budget 3,770,394 3,206,315 564,079 FY 15 -16 Approved Budget 3,750,394 3,280,837 469,557 FY 15 -16 Year End 3,676,410 3,251,711 424,699 South San Francisco Conference Center Fiscal Year 2016 -2017 Budget Revenue Projections- Conference Center Operations FY 16-17 FY 15-16 FY 15.16 % change % of Year End to Proposed Budget Approved Budget Year End Proposed Budget Approved Budget to Approved Budget Rent 805,000 825,000 765,000 -2.429/6 92.73% Food & Beverage 550,000 530,000 550,000 3.77% 103.77% Event Services 220,000 200,000 220,000 10.00% 110.00% Total 1,575,000 1,555,000 1,535,000 1.29% 98-71% South San Francisco Conference Center Fiscal Year 201 6-2017 Budget Revenue Projections - All Sources FY 16-17 1=Y 15-16 FY 15-16 % change % of Year End to Proposed Budget Approved Budget Year End Proposed Budget Approved Budget to Approved Budget Conference Center Operations 1,575,000 1,555,000 1,535,000 129% 98.71% Conference Center 2,183,394 2,163,394 2,129,410 0.00% 97.53% Tax interest Income 12,000 12,000 12,000 0.00% 100.00% Total 3,770,394 3,750,394 3,676,410 0.53% 98.03% Expenditure Projections - All Sources FY 16-17 FY 15-16 FY 15-16 % change % of Year End to Proposed Budget Approved Budget Year End Proposed Budget Approved Budget to Approved Budget Conference Center Operations 2,255,502 2,318,032 2,354,842 -2.70% 101.59% Debt Service 470,613 471,013 470,013 -0.08% 99.79% Property Leases/Taxe 480,200 491,792 426,856 -2.36% 86.80% Total 3,206,315 3,280,837 3,251,711 -2.27% 99.11% South San Francisco Conference Center Fiscal Year 2016 -2017 Budget Expenditure Budget Conference Center Operations FY 16-17 FY 15-16 FY 15-16 % change % of Year End Proposed Budget Approved Budget Year End Proposed 16-17 to Approved to Approved 15-16 680,750 720,000 660,000 -5.45% 91.679 Salaries/Benefits Salaries Workers' Compensation 7,600 6,000 7,300 26.67% 121.67% Health, Dental, Vision, LTD, STD 162,000 190,000 145,000 - 14.74% 76.32% Pension, Medicare FICA 115,000 122,000 98,000 -5.749/a 80.33% 965,350 1,038,000 910,300 -7.00% 87.709 Operations/Maintenance Services 115,000 108,000 110,000 6.48% 101.851y Set Upffear Down Service Janitorial Service 104,500 97,500 104,500 7.18% 107,18% Transportation Service 6,500 6,500 6,610 0.00% 101.691/ Liner✓Water Service 20,000 22,000 20,000 - 9.09% 91919 Temporary Event Labor 170,000 170,000 165,000 0.00% 97.069 Electr/Plum/HVAC Main. Service . 34,500 32,000 32,000 7.81% 100.009 Pest Control 31800 3,900 3,600 -2.56% 92.31% Fire Extinguisher /Alarm Service 4,500 4,500 3,000 0.00°0 66.679 Landscape Service 15,5001 16,000 14,000 -3.13% 87.50% 474,300 460,400 458,710 3.02% 99.63% Operation/Maintenance Supplies 14,000 13,750 12,750 1.82% 92 -739% Janitorial Supplies Operations Supplies 24,500 20,000 20,000 22.50% 100.00% 38,500 33,750 32,750 14.07% 97.0414 Marketing Services 172,000 212,000 198,000 - 18.87% 93.40% Ad Production/Placement Public Relations 12,500 10,500 13,000 19.05% 123 -81 Client Entertainment 11,000 11,000 11,200 0.00% 101 -82°/ Client Gifts 7,500 7,500 5,000 0.00% 66.679 Booth Rental & Equipment Fee 4,000 4,000 3,300 0.00% 82.509 Industry Event Registration 10,000 12,500 8,500 - 20.00% 63.001% Group Incentive Rentals 20,000 5,000 5,000 300.00% 100.00% 237,000 262,500 244,000 -9.71% 92.95% Meeting Travel/Dues/Memberships 6,500 7,000 6,500 -7.14% 92.86% Dues/Memberships Meeting Travel Expense 16,000 24,500 14,000 - 34.69% 57.14% 22,500 31,500 20,500 - 28.57% 65.089E Legal/Professional Services 30,000 30,000 114,000 0.00% 380.009 Legal Services Professional Services 70,000 70,000 70,000 0.00% 100.001/ 100,000 100,000 184,000 0.001/6 184.00% TOTAL 21255,5021 2,318,532 2,354.842 - 2.7246 101.5771 FY 16-17 FY 15-16 FY 15.16 % change % of Year End Proposed Budget Approved Budget Vear End Proposed 16-17 to Approved to Approved 1516 Audit/Payroll Services 22,770 21,500 19,500 5.91% 90.70% City Finance Services 10,000 14,055 10,000 14,055 10,000 14,055 0.00% 0.00% 100 -00° 100.00% General Insurance Property Insurance Liability Insurance 14,468 14,468 14,468 0.00% 100.00% 28,523 28,523 28,523 0.00% 100.00°/ Bank Charges/Bad Debt 80,000 61,000 78,000 31.15% 127.871/ Bank Charges Bad Debt 6,000 6,000 0.00V 86,000 67,000 78,000 28.36% 116.42°/ Office Machines/Publication/Supplies Postage/Rental Equipment 8,000 8,000 8,000 0.00% 100.00% Office Machines Computer Supplies 5,500 5,500 5,500 0.00% 100.00% Office Supplies 3,800 3,800 3,500 0.00% 92.11% Postage 2,500 2,500 2,500 0.00% 100.00 19,800 19,800 19,500 0.00% 98.48% Printing 2,500 57,500 3,000 57,500 2,500 57,500 -16.67% 0.00% 113.33% 100.00% Utilities Internet Service Gas/Electric 95,000 90,000 94,000 5.56% 104.44% Telephone /Long Distance 17,200 16,500 17,000 4.24% 103.03% Water 16,000 16,000 15,500 0.00% 96.88% 185,700 180,000 184,000 3.17% 102.22% Other Ajdustment 100,000.00 Retiree Health Cost 12,559 12,559 12,559 0.00% 100.001Y. 2,205,502 2,268,532 2,304,842 -2.78% 101.601/. Expansion Study 50,000.001 60,000.001 50 000.00 u.W% 100.00% TOTAL 21255,5021 2,318,532 2,354.842 - 2.7246 101.5771 1 2 3 4 S 6 7 8 9 South San Francisco Conference Center Fiscal Year 2016 -2017 Budget Capital Improvement Budget Budget Replace Three (3) HVAC Units $ 935,000 Replace and Install HVAC Trane Tracker Control System $ 67,000 Replace Steamer Oven in Kitchen $ 22,000 Replace and Install New PTZ Security Cameras (32) and Hardware $ 40,000 Install Evaporator Fans for Walk -In Coolers $ 10,000 Replace and Install Air -Wall Fabric in All Meeting Rooms $ 70,000 Replace and Install New Electronic Signage $ 10,000 Replace and Install New Card Key Entry System $ 5,000 Purchase and Replace Three (3) Arena Chair Dollies $ 2,500 TOTAL, $ 361,500 South San Francisco Conference Center Fiscal Year 2016 -2017 Unrestricted Fund Balance /Designated /Undesignated Reserves Ending Unrestricted Fund Balance $ 2,349,661 6/30/2015 Plus Projected FY 2015 -16 Surplus /Loss $ 424,699 Less FY 2015 -16 Capital Expenditures (Actual) $ (357,954) Projected Unrestricted Fund Balance 6/30/16 $ 2,416,406 Plus Projected FY 2016 -2017 Surplus $ 564,079 Less FY 2016 -17 Capital Expenditures $ (361,500) Projected Unrestricted Fund Balance 6/30/17 $ 2,618,985 Authority Designated Reserves * $ 500,000 Projected Undesignated Reserves $ 2,118,985 Projected Fund Balance 6/30/16 $ 2,618,985 * Designated Reserve Categories Capital Improvements $ 100,000 Insurance $ 100,000 Debt. Service $ 150,000 Contingencies $ 150,000 Total $ 500,000 Executive Director Hourly Semi-Monthly Monthly Chief Financial Officer Hourly Sen*Monthly Monthly Director of Facility Operations Hourly Seth- Monthly Monthly Sales Manager Hourly Semi- Monthly Monthly Facility Services Manager Hourly Semi- Monthly Monthly Sales Manager Hourly Semi- Monthly Monthly Event Coordinator Hourly Semi- Monthly Monthly Administrative Services Assistant Hourly Semi - Monthly Monthly Total Up to 5% Increase based on merit/Sales Incentives SOUTH SAN FRANCISCO CONFERENCE CENTER Salary Schedule Fiscal Year 2016 -2017 Executive Director 41/00 72.36 $ 6,270.47 @ 24 6,270.83 12,541.67 Chief Financial Officer sn/9e 58.40 $ 5,061.70 @ 24 5,061.70 10,123.41 Director of Facility Operations 711193 51.11 $ 4,429.35 @ 24 4,429.35 8,858.70 31.35 Sales Manager 1115113 2,716.58 $2,716.58 @ 24 5,433.17 Facility Services Manager 6/18113 33.08 $ 2,866.50.00 @ 24 2,866.50 5,733.00 Sales Manager 711115 26.44 $ 2291.67 @ 24 2,291.67 4,583.33 Event Coordinator 3/1115 24.91 $ 2,159.08 @ 24 2,159.08 4,318.17 Administrative Services Assistant 1211115 22.72 $ 1,968.75 @ 24 1,968.75 3,937.50 150,500.00 121,480.89 106,304.44 65,198.00 68,796.00 55,000.00 51,818.00 47,250.00 666,347.33 14,402.67 Total 680,750.00 SOIA 11 SAN FRAN( 1st U Comt:RFNCF Ct"I FR SOUTH SAN FRANCISCO CONFERENCE CENTER AUTHORITY FISCAL YEAR 2016 -2017 BUDGET Explanations of Changes June 6, 2016 255 South Airport Boulevard South San Francisco, California 94080.6703 650- 877 -8787 www.ssfcontcom Revenue and Expenditure Projections - All Sources - A surplus of revenue over expenses for FY 16 -17 in the amount of $564,079 is projected. This contributes to the fund balance and provides for capital improvements. The projected Fund Balance at June 30, 2016 is $2,416,406. The budgeted surplus for the FY 2015 -16 was $469,557; however, the year -end projection is that the surplus will be $424,699. Revenue Projections - All Sources - Conference Center Revenue — A 1.29% increase in Operations Revenue is projected for FY 2016 -17 from FY 2015 -16 approved budget. The hospitality industry continues to improve and 98.71% of the FY 2015 -2016 budget projection was met. The FY 2016 -17 projections are anticipated to be met based on the level of confirmed and tentative business currently booked. The outlook for the coming year is still very positive for the San Francisco International Airport area. Conference Center Occupancy Tax - An occupancy rate of 82% is projected for Fiscal Year 2016 -17. It is anticipated that FY 2015 -16 year -end occupancies will be approximately 80 %. Interest Income — Interest income is projected to remain the same, however changes can be based on market fluctuation. 0.53% Revenue increase projected for FY 2016 -17 from FY 2015 -16 approved budget. Expenditure Projections - All Sources - Conference Center Operations Expenditure — A 2.7% decrease is projected from FY 2015 -16 approved budget and an overall 2.27% decrease from FY2015 -16 \I; I), I I ,-IIIt V:azl, ti( iiIII SMI I'IM16101. iItIIIMiA '408(1 www.ssfconf.com annual budget for FY2016 -17. Please see the Operations Detail section for explanations. Debt Service - Amounts reflect a continuation budget. Property Leases /Taxes - Amounts reflect a continuation budget with a change in the sewer charges. The sewer charge is based on water consumption. Since our water consumption significantly decrease our sewer charge for FY 16 -17 decrease by 53 %. This in in part with our LEED's certification process that was completed in September 2015. Expenditure Projections - Conference Center Operations All operating areas reflect the level of projected business. Funds are included to continue Phase II of the market and financial feasibility study for the possible expansion of the Conference Center. In Marketing Services, the Ad Production and Placement has been decreased based upon the website has been updated and all marketing campaigns will stay the same for the coming fiscal year. Capital Improvements Budget - The Capital Improvement Budget lists projects which require HVAC upgrades (1), replacing and installing HVAC Trane Tracker Control System (2), replace the steamer oven in the kitchen (3), replace and install a new PTZ security cameras (32) and hardware (4), install evaporator fans for the walk -in coolers (5), replace and install air -wall fabric in all meeting rooms (6) replace and install new electronic signage (7), replace and install new card key entry system (8) and purchase and replace three (3) arena chair dollies (9). The Capital Improvement Budget reflects the Authority's continued commitment to making annual capital improvements to the Conference Center so no single year requires an excessive amount of funds to be budgeted. ?ii Suufh Vilu,ri f3nulcc.inl. ;4,1111 tiara I.r;:nci,co, l.aliforwo (411541 ;1V, 0 ill.!,'-- i 3' i1) %vxvw.ssfuonEcom