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CR 2000-122 Approve Budget Adjustment For Management Reorganization i' \. . July 14, 2000 \ ,. y 0 :ca: OPK\~ Council Report 2000-122 ~ Ii APPROVE BUDGET ADJUSTMENT FOR FACILITY MANAGEMENT REORGANIZATION ProDosed Action Staff recommends adoption of the following: Move to approve budget adiustment for the Facility Management reorganization. Adoption of this motion will result in staff transferring $5,000 from the general fund contingency budget in 2000 into the general fund, parks program budget and activity center budget. No other budgets will be affected in 2000. This does not increase the overall general fund budget in 2000. Overview City staff brought forward a proposal of creating a Facility Manager position to help coordinate the management of the Art Center, Pavilion, Activity Center, Depot Coffee House and Skate Park. This position is not a new position but a reorganization of the current Art Center Manager position. . Primary Issues to Consider . How will this impact the Depot Coffee House? . How will this impact the Skate Park? . How will this impact the Pavilion? . How will this impact the General fund? . . How will this impact the Art Center? Staff Recommendation Finance recommends the transfer of $5,000 from the general fund contingency to parks program and activity center program, each receiving 50% of total. . Financial Impact: $6,275 Budgeted: Y/N Yes (in other areas) Source: General Fund, Depot Coffee House and Skate Park Notes: . . . ,. Primary Issues In the year 2000 the general fund will absorb approximately $5,000 in additional salary costs, the Depot will absorb approximately $775 in additional salary costs and the Skate Park will absorb approximately $500 in addional salary costs. Currently the Depot Coffee House operations have a positive fund balance of $5,900. With the opening of the Skate Park, one third of the Coffee House Manager salary is being expensed in the Skate Park. Therefore the Coffee House should be able to absorb the $775 and still be under budgeted expenditures. The Skate Park is not budgeted in 2000. Currently the Skate Park has a positive balance of $8,000. The additional $500 expense can be absorbed there. The Pavilion is expensed a portion of the park supervisors salary. This salary would be absorbed by the general fund and the Facility Manager salary would be expensed to the Pavilion leaving a net zero affect on Pavilion expenditures. The general fund will be affected most by the reorganization. In 2000, $2,500 will be expensed to the Activity Center and $2,500 will be expensed to the parks program. The general fund budget will not be increased but contingency budget will be used to compensate for the additional cost. As of July 5th, $80,000 of the $100,000 contingency has been appropriated. The reorganization will relieve the Art Center of $6,275 in salary expenditures in 2000. The reorganization will be included in the 2001 budget. . . . July 18, 2000 r ......\ , "{ Yo', \ . ~' o P K \ '" 1999 COMPREHENSIVE ANNUAL FINANCIAL REPORT AND AUDIT PRESENTED BY PEAT MARWICK Overview Staff has requested our auditors to present the 1999 Comprehensive Annual Financial Report and the results of the 1999 audit to the City Council and public. Supportine Information . Comprehensive Annual Financial Report '"'"_.,.........-~r . July 12, 2000 '\ 1" Y 0 ~ ..y c:" o P K \ ~ Formation of a Facilities Division of Public Works Background Information ~-< -~,~, "-0' - ~-- -.... ~ - .... ,.. ~- ~'. ~ '. ....... vervlew Since 1981 the City of Hopkins has opened the Hopkins Activity Center, the Hopkins Pavilion, The Hopkin's Center for the Arts, the Depot CoffeeHouse and the Overpass Skate Park. These facilities contain over 100,000 square feet of space and employ up to 50 employees. To this point the facilities have operated independently of each other with a limited amount of sharing of resources or communications. Staff is proposing that these facilities come together under one division of Public Works. This will improve the communications, cooperation, and collaboration between facilities and provide organizational structure to the maintenance of the facilities. . Primary Issues to Consider . What is the organizationalstructure of the Facilities Division? . How will the new division benefit the City and Facilities? . What are the budgetary impacts? Supportina Information . Organizational chart . Council Report 2000-118 Page 2 . Primary issues to consider. What is the organizational structure of the Facilities Division? The Facilities Division will be a division of Public Works. The Art Center, Pavilion, Activity Center, Depot and Skate Park will be facilities of this division. The supervisors of these facilities will report to the Facilities Director. The Facilities Director will report to the Public Works Director (see attached organizational chart). This will give the. facilities a common supervisor and an organizational tie to Public Works. The Facilities Director will be at the same organizational level as the PW Superintendents. This direct association to PW addresses the maintenance concerns of the facilities supervisors and also creates an organizational hierarchy for staff reporting. . . The Facilities Director will perform the supervisory function for the facilities of the division and also have the responsibillty of the Arts Center facility manager position. This division of responsibility will be divided into 75% time allocation toward Art Center management and 25% time allocated to Facilities Division administration. How will the new division benefit the City and Facilities? The benefits of a Facilities Division include: . Improved Communications - Communications will improve quickly through the attention to the new division. The facllities will now have a point person, the Facilities Director, working on the facilities behalf in the area of communications and cooperation between facilities and other City departments. . Improved Morale - The facilities personnel have felt on their own and not directly connected to City Hal! or PW. By improving communications, creating a division that promotes a common cause, and defining the facilities home in the organization, the facilities personnel feel more a part of the larger City organization. . Improved Revenue Streams - By working together to provide rental space to groups, programming, collaboration on programs and fundraising, and utilizing four facilities supervisors to create enterprising ideas, revenues will improve. . Total expenses for the facilities will increase at a lesser rate - There are opportunities to share employees saving hiring costs. Coordination of maintenance work with PW will delay the need to hire a mechanical maintenance person for the facilities. Advertising, newsletters, and promotional costs can be cooperative to . reduce total costs. What are the budgetary impacts? There are no promotions or new hiring of personnel associated with the formation of a Facilities Division. The Arts Center Facilities Manager will become the Facilities Director. The time necessary to perform the new responsibilities created by the division will come from the delegation to the Arts Coordinator of the Art Center, programming and board responsibilities, in the HCNHAPA reorganization. . . . Council Report 2000-118 Page 3 The Facilities Director will have 25% time allocated to the facilities of the division. The allocations break down as follows: Facility % allocation of Facilities Dollar amount charged to Director's Compensation each facilitv Pavilion 10% $7,800 Activity Center 10% $7,800 Depot 2.5% $1,950 Skate Park 2.5% $1,950 Total 25% "'$19,500 '" Total relief to the Art Center budget is $19,500 The total impact to the General Fund will be an increase of $15,600. The Art Center will see a decrease of $19,500 in personnel costs. As noted in the section on the benefits of the facil1ties division, a portion of the cost of forming the division will be recovered through improved revenue streams, and cost containment in collaboration and cooperation among facilities and PW. . .. - ~ . Eng. Superintendent Senior Eng. Tech BUILDING & EQUIPMENT SERVICES FACILITIES MANAGEMENT Superintendent Jay Strachota Superintendent Building Services I E I Custodian Activity Center I Coordinator Supervisor . Secretary' Receptionist Equipment Services I EJ Center for the Arts I Arts Coordinator I Scheduling Coordinator Custodia n Steve Stadler Director PARKS & FORESTRY Parks & Forestry I [3 ~ I I Maint. II Paviliont Ice Arena I Pavilion Manager Pavilion Assistant Mgr. I Secretary Secretary/Recycling Coordinator Reception ist'C I erk STREET, TRAFFIC & SANITATION Maint. IV I EJ j Maint. II WATER & SEWER Superintendent I EJ I [:] I Maint. II Depot'Coffee Housel Skateboard Park Manager Revised: 2000/6/8