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CC Resolution 13167 - Heritage Theatre General Fund Policy RESOLUTION NO. 13167 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL ELIMINATING THE $200,000 GENERAL FUND SUBSIDY LIMIT FOR THE HERITAGE THEATRE OPERATION EFFECTIVE.FISCAL YEAR 2025 WHEREAS, The City anticipated an annual subsidy of $250,000 upon the reopening of the Heritage Theatre and had set aside funds to address the offset of revenues to expenditures; and WHEREAS, the reserve fund for operations was fully expended in FY09; and WHEREAS, strategies to address the annual shortfall were approved by City Council in 2010 to provide $100,000 in general fund subsidy annually; and WHEREAS, in 2015 it was determined that additional strategies were needed to address the difference in revenues to expenditures and the general fund subsidy was increased to $200,000; and WHEREAS, the revision of the policy in 2015 also allowed for the use of the preservation and enhancement fund to help offset any additional funds need above the $200,000; and WHEREAS, the arts industry has been slow to recover post-pandemic; and WHEREAS, it is anticipated that the revenue collected for the preservation fund will continue to be used towards operations and additional funds will be withdrawn from the account to meet the general fund limit; and WHEREAS, the preservation and enhancement fund is a valuable tool to allow the replacement of equipment in a timely manner; and WHEREAS, the equipment schedule illustrates $350,000 in equipment needs over the next several years and the P&E fund balance is currently $233,382; and WHEREAS, the Heritage Theater is a valuable community asset and is part of the Recreation and Community Services Department; and WHEREAS, shifting the focus to a more holistic approach for the entire department ensures that all recreational and cultural assets are supported and have flexibility; and NOW, THEREFORE BE IT RESOLVED, that the City Council of Campbell eliminates the general fund subsidy limit of$200,000 for the Heritage Theatre effective FY25. PASSED AND ADOPTED this 4th day of June, 2024 by the following roll call vote: AYES: Councilmembers: Bybee, Furtado, Scozzola, Lopez, Landry NOES: Councilmembers: None ABSENT: Councilmembers: None APPROVED: Susan M. Landry, ayor ATTEST: tylmIteo oireeta , Andrea Sa ders, City Clerk HERITAGE THEATRE . EQUIPMENT LIFE EXPECTANCY SCHEDULE Anticipated Estimated Date of Expected Life ? Date of Replacement �� ' � ' ' or Frequency >° Replaced' Funding Source � Installation Service or Cost HT Operating Equipment ,of Service . Replacement„ `(2009$s) ., Upgrade Sound System Feb-2004 10-15 yrs 2014-2019 $100,000 HT P& E Fund Carpet Replacement-Lobby& Auditorium July 2018 10-15 yrs 2028 $65K HT P&E Fund Cyclorama &Drapes-Fire Retardent must be applied every 5/12/11 10 yrs 2022E $6,000 HT P&E Fund 10 years Cyclorama -Replacement June-2014 8 yrs 2022 $8,000 HT P&E Fund Commercial Refrigerator in G Roar 2017 10 yrs 2027 $3,000 HT P& E Fund Elevator-Hydraulic System Feb-2004 20 yrs 2024 HT P&E Fund Emergency Lighting Battery Back- 9/12/11 7 yrs 2018 GF: Bldg. Mtce item up Replacement(24 batteries) HVAC System in Box Office Jan-2024 10 years 2034 $5,000 GF: Bldg. Mtce item HVAC System in Auditorium- Replacement(chiller,air handler Feb-2004 20-25 yrs 2021 2041 $75,000 HT P&E Fund &boiler) Upgrade Lighting System Feb-2004 15-20 yrs 2019-2024 $50,000 HT P& E Fund Paint-Inside&Out Feb- 2004 12-15 yrs 2017 $45,000 HT P&E Fund Rigging replacement(ropes&pulleys: Feb-2004 15 yrs 2019 HT P&E Fund Roof Coating (3 roofs) Sept-2019 10 yrs 2029 $25,000 HT P&E Fund Roof Repacement(Tile) Feb-2004 75 yrs 2079 $80,000 HT P&E Fund Seat Coverings(810) Replaced Feb- 2004 20 yrs 2024 $40,000 HT P& E Fund Sound Web#1 Feb- 2004 10 yrs 2014 $3,000 HT P&E Fund Sound Web#2 2012 10 yrs 2022 $3,000 HT P&E Fund Sound.Web#3 2014 10 yrs 2024. $3,000 HT P&E Fund Stage Curtain- Repair/Replacemer Feb-2004 30 yrs 2034 $50,000 HT P&E Fund Stage Floor Replacement June-2014 20 plus yrs 2034 $12,000 HT P& E Fund Video Projection System Jan -2010 20 yrs 2019 $30,000 HT P&E Fund Washer&Dryer Feb-2004 15 yrs 2019, $2,500 HT P&E Fund Water Heater 2014 10 yrs 2024 $1,200 GF: Bldg. Mtce item Window Covering Replacement Feb-2004 10-15 yrs 2016 $40,000 HT P& E Fund $581,700