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Home My WebLink AboutR-93-056041 J-93-637 ! 8/27/93 RESOLUTION NO. 9 3— 05 C n i A RESOLUTION, WITH ATTACHMENT(S), APPROVING i THE ANNUAL BUDGET OF THE DEPARTMENT OF OFF- STREET PARKING FOR THE FISCAL YEAR COMMENCING a OCTOBER 1, 1993 AND ENDING SEPTEMBER 30, 1994, AS MORE PARTICULARLY SET FORTH AND ATTACHED HERETO, IN THE AMOUNT OF $1,054,092, EXCLUDING DEPRECIATION, TO PROVIDE FOR THE OPERATION OF THE GUSMAN CENTER FOR THE i PERFORMING ARTS AND THE OLYMPIA BUILDING. WHEREAS, Ordinance No. 8345 was adopted by the City Commission on July 31, 1975, authorizing the Off -Street Parking Board of the City of Miami to administer the Gusman and Olympia (G&0) Enterprise Fund (now known as Gusman Center for the Performing Arts and the Olympia Office Building); and WHEREAS, a budget is required in order to properly administer the facility; and WHEREAS, the Budget of the G&O Enterprise Fund for Fiscal Year 1993-94 has been reviewed by the Off -Street Parking Board and has been found acceptable; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: i Section 1. The recitals and findings contained in the i Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. ATTACH MEN T (S) CITY C07t4"A2rSSIOK IVZI °I')�I4.�`: OF Resolution No. `� r r Section 2. The Annual Budget of the Department of Off - Street Parking for the Fiscal Year commencing October 1, 1993 and ending September 30, 1994, as more particularly set forth and attached hereto, in the amount of $1,054,092, excluding depreciation, to provide for the operation of the Gusman Center for the Performing Arts and the Olympia Building is hereby approved. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 7th day of September _ 1993, ATTEST MATTY HIRAI CITY CLERK PREPARED AND APPROVED BY: RAFAEL 0. DIAZ DEPUTY CITY ATT RNEY APPROVED AS TO FORM AND CORRECTNESS: d. QjT`-'g J N S, I I I CITY ATT0 Y BSS:M3B31 XAVIER L. SUAREZ, JAYOR 93- 560 93- 560 n() EMDME �MRft Twq�mm August 27, 1993 S. Honorable Mayor and Members of the City of Miami Commission: It is a pleasure to submit the Budget for the Gusman & Olympia Enterprise Fund for Fiscal Year 1993/1994. The Budget includes both Gunman Center and the Olympia Building. Background Philanthropist Maurice Gusman deeded the Olympia Theater and the ten -story Olympia Building to the City of Miami in 1975, with a deed restriction requiring the Miami Parking System to manage the facility. When built in 1926, the plan was for the office building rental revenue to support operations of both structures, and this concept proved successful for a number of years. However, during FY 1986/87, a proposed redevelopment of the office building caused a relocation of many tenants that adversely affected rental income. The project failed to materialize, and due to the condition of the building and Downtown's continued high office vacancy rate, restoring even adequate tenancy in the Olympia Office Building proved extremely difficult. This problem was further compounded by relocation of the City of Miami offices to the Dupont Plaza in May of 1992. Without the income provided by the Olympia office tenants, operating deficits (excluding depreciation) have been incurred each year since 1983/84. These deficits have been borne by the City of Miami and were paid regularly through 1987/88; a payment system to reimburse the Miami Parking System for the succeeding deficits, through September 30, 1993, is in effect. It should be pointed out that during the 18-year management history by the Miami Parking System, the Gusman and Olympia Enterprise Fund average annual deficit has been under $100,000, a figure that compares favorably with deficits shown by other South Florida venues. No known, comparable theater in the United States operates without considerable municipal subsidies. The struggle in recent years to breakeven has yet to be successful. The deficit of FY 1989/90 of $227,820 (caused primarily by the write-off of expenses incurred in the unsuccessful redevelopment of the building) was reduced in FY 1990/91 to $169,755, slipped to $263,000 in FY 1991/92, and projects to $432,452 for 1992/93 including lost revenues caused by Hurricane Andrew. Projected for FY 1993/94 is a controlled deficit of $276,379. CLARK COOK Executive Director 93— *560 Department of Off Street Parking • 190 N.E. Third Street 9 Miami, Florida 33132 9 Tel: 305-373-6789 9 Fax: 305-371-9451 Hurricane Andrew Both the Olympia Office Building and the Theater were, thankfully, only somewhat damaged by the storm. The initial damage assessment of $100,000 was covered by insurance and by FEMA reimbursements. Relatively simple repairs allowed the Theater to open its season on time in September (further assessment and repairs are ongoing). The real damage, however, was to programming, bookings, contributions, and audience attendance. Promoters who had rented the Theater cancelled many dates through the end of the calendar year, and events that did occur brought greatly reduced audiences. We were pleased that the Gusman co -produced B.B. King show on December 30 was a near sellout, which signalled an upturn. First quarter revenues lost as a result of the hurricane were irretrievable, however. An estimated 30% of projected FY 92/93 income was not realized due to Andrew. It might have been expected that the year's budget deficit would have jumped a concomitant amount, but this did not prove to be the case. Thanks to the efforts of the City, Miami Parking System, and Gusman staff, G & 0 will receive a $105,000 State of Florida grant dedicated to offset part of the Theater's hurricane revenue losses. Redoubled efforts by Gusman staff to book the Theater, to extend the season into July, and to cut costs, resulted in better than expected projected performance for FY 1992/93. REDEVELOPMENT OF OLYMPIA OFFICE BUILDING In the fall of 1992, proposals were solicited for the Unified Development of the Olympia Building. A single bid, from Gusman Center Partners, was received. The proposal, to redevelop the upper floors of the office building into affordable housing geared to the student market, was accepted by the City of Miami Commission and a contract was signed May 1, 1993. The contract was contingent on Gusman Center Partners obtaining certain financing which was not yet determined at the time of this budget preparation. Thus, the Budget presented herein assumes Gusman Center Partners will not comply with the contract, and that the responsibility for operation of the Olympia Building remains with the City through the G & O Enterprise Fund. Fiscal Year 1993/1994 Budget Highlights Revenue is projected to total $777,713, with event -generated income adjusted to the post -hurricane marketplace. A new concession contract is in the RFP stage, resulting in higher anticipated concession revenue. A more favorable Ticketmaster contract was negotiated 1992/93, and a more favorable stagehand union contract is near signing. Theater bookings for 1993/94 are well ahead of last year, with over 180 user days planned. Expenses will increase to $1,054,092 from $1,023,368. Utilities (especially from the Olympia Building) and insurance will remain major 11 93-- 560 expenses. Although cost cutting measures have been taken, there is a slight increase due to the need for a larger marketing budget to promote theater events. Without this campaign, it is likely that theater revenues will deteriorate at a time when Gusman's image must be strengthened. In summary, the FY 1993/1994 budget projects a $276,379 deficit. Restoration Program From June through August of 1992, theater fire safety systems, roof, ceiling and historic plaster, were repaired. Installation of new placements for balcony "tormentor" lights; rebuilding of part of the stage lift system; back stage safety improvements and technical enhancement of sound and lighting; installation of a new front -of -house sound booth; and major steps towards improving the vestibule, including hand painting of the ceiling and interior door surround, rebuilding of the walls, and installation of marble wainscoting were also accomplished. Funding for these improvements (over 1 million dollars) was provided by the State of Florida, along with matching funds from the City of Miami and other sources. Gusman is proceeding with interior repairs (new signage, carpet replacement, etc.), improved electrical systems, and interior modifications to comply with American Disabilities Act standards. Funds generated by a percentage of ticket sales dedicated to restoration provide for these improvements. To support this ongoing effort, the State has granted an additional $500,000 for work to be completed during FY 93/94. Summary and Conclusion In summary, Gusman Center remains one of South Florida's most important contributors to our community's rich cultural milieu. With an active calendar that provides events to an almost equal number of South Florida's three major ethnic markets, no other local facility can match in quantity -- or quality -- the performance levels of Gusman. To over 160 diverse organizations, thousands of school children, and for generations of Miamians as well as tourists, this jewel of a theater provides a symbol of permanence and continuity in a fast -changing world. No more beautiful and technically -sound facility exists in our County. As the cultural community as a whole searches for stability after a period of explosive growth, devastation from Hurricane Andrew, and the culmination of many years' work to build a major, centralized performing arts center, Gusman is still extremely active and popular, and remains a key factor in the revitalization of Downtown Miami. If successful, the proposed Center for the Performing Arts will provide a financial boost to Gusman in the form of $3.8 million for physical improvements over the next few years. Some Gusman tenants, notably the Florida Philharmonic and the New World Symphony, will depart to the new iii 93- 560 facility. Anticipating these major changes, Gusman has worked diligently to build a customer base and unique market niche that will survive the transition to a new performing arts center. FY 1993/94 will be an important milestone for Gusman Center. Over 180 days of events are planned; improved understanding of our marketplace and fund raising capabilities plus continued restoration will set our magnificent theater on the road to a brighter financial future that will serve well the wide cultural needs of the City of Miami, and its South Florida Family. Adoption of the FY 1993/94 budget by the Off -Street Parking Board and the City Commission will assure this great step forward. I wish to thank Gusman's Managing Director, her staff, the Miami Parking System staff, and members of the Friends of Gusman for their extreme efforts in this difficult year, and for their continued energy and support. Respectfully Submitted, Clark Cook Executive Director Gusman and Olympia Enterprise Fund Requested Budget FY 1993/1994 Assuming No Development of Olympia Building Revenues: Rental- Tenants Rental- Percentage Rental Income- Gusman Theater Gusman Produced Events Concessions Rental- Equipment Ticket Commissions Ticket Service Charges Front of House Revenue Miscellaneous Income Deposit Forfeitures Season Grants outside Contributions Total Revenues Operating Expenses: Salaries Payroll Taxes & Fringe Benefits Maintenance- Property Maintenance- Elevators Maintenance- Air Conditioning Maintenance- Computer Maintenance- Alarm Repairs- Equipment Cleaning & Housekeeping Expendable Tools & Supplies Clothing Supplies Signs Maintenance- Other Security Guard Telephone Light & Power Water Insurance- Workmen's Comp Insurance Equipment Rentals/Move Gusman Production's Costs Audit Fees Other Consultants Bank Charges Postage & Courier Printing Office Supplies Computer Supplies Page No. 1 Requested Budget 93/94 Vs. 93/94 Budget 92/93 92/93 Budget Proj. 92/93 Budget 92/93 Requested Projected Approved 1-increase (Decrease)-( 197,322 188,934 188,700 8,388 8,622 4,100 4,100 6,000 0 (1,900) 155,800 130,000 163,000 25,800 (7,200) 120,000 100,000 40,000 20,000 80,000 30,880 17,363 26,920 13,517 3,960 20,160 16,641 24,500 3,319 (4,340) 2,000 1,700 2,000 300 0 124,000 103,302 143,000 20,698 (19,000) 33,771 28,143 27,500 5,628 6,271 4,680 3,959 23,380 721 (18,700) 0 8,960 12,000 (8,960) (12,000) 30,000 20,000 20,000 10,000 10,000 55,000 35,000 70,000 20,000 (15,000) 777,713 658,302 747,000 119,411 30,713 298,425 353,482 351,514 (55,057) (53,089) 83,857 95,562 103,290 (11,705) (19,433) 3,500 4,257 6,076 (757) (2,576) 4,210 5,601 6,500 (1,391) (2,290) 11,598 12,761 16,745 (1,163) (5,147) 624 600 0 24 624 3,300 300 0 3,000 3,300 8,280 14,591 17,000 (6,311) (8,720) 10,140 8,826 11,500 1,314 (1,360) 5,040 5,165 3,500 (125) 1,540 1,020 208 500 812 520 1,000 800 1,500 200 (500) 19,352 28,542 29,300 (9,190) (9,948) 30,000 41,900 36,848 (11,900) (6,848) 22,000 24,000 22,000 (2,000) 0 93,290 88,440 91,924 4,850 1,366 67,000 65,217 56,076 1,783 10,924 10,368 10,277 11,325 91 (957) 52,632 52,081 55,670 551 (3,038) 7,650 9,454 9,000 (1,804) (1,350) 150,000 129,000 60,000 21,000 90,000 15,500 15,500 9,000 0 6,500 0 0 0 0 0 2,184 2,100 0 84 2,184 5,500 4,100 5,500 1,400 0 4,500 4,500 2,000 0 2,500 6,552 6,300 8,000 252 (1,448) 1,560 1,500 2,500 60 (940) 93- 560 .,. Page No. 2 Gusman and Olympia Enterprise Fund Requested Budget FY 1993/1994 Assuming No Development of Olympia Building Requested Budget 93/94 Vs. 93/94 Budget 92/93 92/93 Budget Proj. 92/93 Budget 92/93 Requested Projected Approved -increase (Decrease)-) Special Assessments 8 Taxes 10,585 10,188 10,000 397 585 Licenses and Permits 1,700 1,583 1,800 117 (100) j Special Services 3,625 33,933 25,500 (30,308) (21,875) Management Fee-Dosp 12,D00 12,000 12,000 0 0 Accounting Services 20,000 0 0 20,000 20,000 Rent 0 0 0 0 0 Business Services 2,000 1,500 2,000 500 0 j Travel 4,500 4,500 5,900 0 (1,400) 1 Training 0 0 0 0 0 Business Development Meetings 2,100 2,100 2,100 0 0 i Publications 2,000 2,000 2,000 0 0 Membership Fees 1,500 1,500 1,500 0 0 Dues € Subscriptions 0 0 0 0 0 Promotional Expense 0 7,300 7,300 (7,300) (7,300) Public Relations 0 0 0 0 0 Advertising 75,000 28,086 34,000 ",914 41,000 Gusmen Art Exhibit 0 1,000 2,000 (1,000) (2,000) Total Operational Expenses 1,054,092 1,090,754 1,023,368 (36,662) 30,724 Net Income (Loss) (276,379) (432,452) (276,368) 156,073 (11) Gusman and Olympia Enterprise Fund Detail Requested Budget FY 1993/1994 Assuming No Development of Olympia Building Revenues: Rental- Tenants Rental- Percentage Rental Income- Gusman Theater Gusman Produced Events Concessions Rental- Equipment Ticket Commissions Ticket Service Charges Front of House Revenue Miscellaneous Income Deposit Forfeitures Season Grants Outside Contributions Total Revenues Operating Expenses: Salaries Payroll Taxes & Fringe Benefits Maintenance- Property Maintenance- Elevators Maintenance- Air Conditioning Maintenance- Computer Maintenance- Alarm Repairs- Equipment Cleaning & Housekeeping Expendable Tools & Supplies Clothing Supplies Signs Maintenance- Other Security Guard Telephone Light & Power Water Insurance- Workmen's Comp Insurance Equipment Rentals/Move Gusman Production's Costs Audit Fees Other Consultants Bank Charges Postage & Courier Printing Office Supplies Computer Supplies Gusmn Olympia Box 93/94 Budget Theater Building Office Requested 197,322 197,322 4,100 4,100 155,800 155,800 120,000 120,000 30,880 30,880 20,160 20,160 2,000 2,000 28,000 96,000 124,000 33,771 33,771 4,345 335 4,680 0 0 30,000 30,000 55,000 55,000 479,956 201,757 96,000 777,713 238,303 20,602 39,520 298,425 71,035 5,946 6,876 83,857 3,500 3,500 0 4,210 4,210 7,908 3,690 11,598 624 624 3,300 3,300 5,000 3,280 8,280 6,500 3,640 10,140 4,000 1,040 5,040 500 520 1,020 1,000 1,000 18,000 1,352 19,352 15,000 15,000 30,000 22,000 0 22,000 38,500 54,790 93,290 33,500 33,500 67,000 8,000 2,368 10,368 37,000 14,332 1,300 52,632 7,650 7,650 150,000 150,000 11,000 4,500 15,500 0 0 2,184 2,184 5,500 5,500 4,500 4,500 6,552 6,552 1,560 1,560 Page No. 3 93- 560 Page No. 4 Gusman and Olympia Enterprise Fund Detail Requested Budget FY 1993/1994 Assuming No Development of Olympia Building Gusman Olympia Box 93/94 Budget Theater Building Office Requested Special Assessments B Taxes 250 10,335 10,585 Licenses and Permits 1,600 100 1,700 Special Services 3,625 3,625 Management Fee-Dosp 6,000 6,000 12,000 Accounting Services 15,000 5,000 20,000 Rent 0 Business Services 2,000 2,000 f Travel 4,500 4,500 Training 0 0 Business Development Meetings 2,100 2,100 Publications 2,000 2,000 Membership Fees 1,500 1,500 fDues 8 Subscriptions 0 Promotional Expense 0 0 Public Relations 0 0 Advertising 75,000 75,000 Gusman Art Exhibit 0 0 Total Operational Expenses 816,191 190,205 47,696 1,054,092 Net Income (loss) (336,235) 11,552 48,304 (276,379) Page No. 5 Gusmen and Olympia Enterprise Fund Personnel Budget FY 1993/1994 Assuming No Development of Olympia Building Total Total Gusman Olympia Box 0 of 93/94 Budget Theater Building Office FTE'S Requested Managing Director 52,000 1.00 52,000 Theatre Operations Manager 36,836 1.00 36,936 Technical Director 32,000 1.00 32,000 Director of Development 42,297 1.00 42,297 Box Office Manager 18,720 0.75 18,720 Box Office Clerks 20,800 LOD 20,B00 Receptionist 7,956 0.50 7,956 Clerk/Typist 9,173 0.50 9,173 Maintenance Engineer 17,950 1.00 17,950 Custodians 16,380 5,460 1.50 21,540 Elevator Operator 14,560 1.00 14,560 House Managers 13,650 1.00 13,650 Total Salaries 228,242 20,020 39,520 11.25 287,782 Merit Pool 10,061 582 0 10,643 Total Personnel Expense 238,303 20,602 39,520 11.25 298,425 47 TO: Honorable Mayor and Members of DATE: August 27, 1993 the City Commission City of Miami FROM: Clark Cook SUBJECT: Gusman & Olympia Enterprise Executive Director Budget Approval FY 93/94 Miami Parking System Enclosed is the budget for the Gusman & Olympia Enterprise Fund for fiscal year 1993/94. The budget assumes that the G & O Enterprise Fund retains full operational control and fiscal responsibility of the Olympia office building. This budget was approved by the Off -Street Parking Board at its meeting of June 30th, 1993. We respectfully request your approval of this budget at your meeting scheduled for September 7, 1993. CC:ns:budget94.doc/7 cc: Harold J. Manasa Nancy Skinner David Willis Beverly Solomon