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HomeMy WebLinkAboutPR 14863: MUSEUM OF THE GULF COAST CONTRACTCity of Port Arth ur Finance Department Memorandum To: Steve Fitzgibbons, City Manag From: Rebecca Underhill, Director of Date: September 1, 2008 Re: PR 14863 Recommendation I recommend that the City Council adopt Proposed Resolution 14863, approving a contract between the City, Lamar State College-Port Arthur and the Port Arthur Historical Society for the purpose of funding the Museum of the Gulf Coast for the 2008-2009 fiscal year in the amount of $144,336. Background The City provided funding in the amount of $48,000 per year for 1993 through 1997, for the Museum of the Gulf Coast. In fiscal 1998, the funding level increased to $60,000 per year. In the 2001 fiscal year, the funding level increased to $71,000. The Museum received a funding increase to $76,000 for 2007 and 2008. City funding, along with funding from Lamar State College-Port Arthur and the Port Arthur Historical Society, provides the operating budget of the Museum. Due to declining revenues at Lamar State College-Port Arthur, the Museum requested an increase for 2008-2009 (see attached letter). This resolution provides support of $144,336. Budgetary Effect Funds are provided in the 2008-2009 proposed budget to provide for the $144,336 support of the Museum, Hotel Occupancy Tax Account 140-1405-551.59-00 account, Project M97904. Summary I recommend that the City Council adopt Proposed Resolution 14863, approving a contract between the City, Lamar State College -Port Arthur and the Port Arthur Historical Society for the purpose of funding the Museum of the Gulf Coast for the 2008-2009 fiscal year. ~ (~1.~. 7 r ~ ~fJ, ~~tT . _ ~ ~ ~~ ~ . ~'®~3'T AR~-I~7~ ~-II~'~'~~I~A3, S~~~E'T~ ~CF/~ ~~~ Fp P. O. BOX 310 PORT ARTHUR, TEXAS 77641 ~~~rY _ ~ 2 ,~~©8 M,gN~G~~s O,c~~CF May 30, 2008 M~~h Mr. Steve Fitzgibbons ~(r( / City Manager ~L ~" y City of Port Arthur ~^ ,~,~ ,,., y P. 0. Box 310 ~ t Port Arthur, TX 77641 i~~~~ Dear Steve: The purpose of this letter is to request an increase in the City's support level at the Museum of the Gulf Coast. Lamar-Port Arthur and the Society are operating partners with you, as you know, and each underwrites a portion of the annual budget. In the current fiscal year the college is providing 50.89'0, the Society 34.3% and the City 14.9% as shown by the attached. The problem we face next fiscal year is the College will implement a budget reduction of 11% in order to come within available revenue. The enrollment at the College has not recovered from Hurricane Rita and is being further impacted by the industrial expansion as more people are going to work rather than going to school. We support the growth and development here and believe the enrollment will build back within the next five years. Consequently, other sources of revenue have been sought. The Society has approached the Jefferson County Tourism Commission for support and found that marketing is the only element of the budget the Museum would be eligible to apply for. SETAC was also contacted and we determined the only help from this source would be in support of exhibits and programs and the grants are provided on a competitive basis. With the forgoing in mind, the Museum needs operating funds to defray personnel, utility and insurance costs, expenses which are not eligible for reimbursement through the Jefferson County Tourism Commission or SETAC. Therefore, this request is for an additional $68,336 which would help underwrite the 2008-09 budget. Should the City approve this amount, the proportional funding levels would be as shown below and in the attached. College 37.49'0 Society 34.390 City 28.39'0 _ .... .. _ ._.._ _._ , ,,..,,,,,, D^M~spo nso% of a-,~ tha Museum of the Gulf Coast 'S 1 Mr. Steve Fitzgibbons May 30, 2008 Page 2 The Museum is Port Arthur's most significant tourist attraction and has drawn 171,909 visitors since opening. It has brought visitors from every continent and helped shape our image as a city in a positive way. The Museum also serves as a vital resource for the local community through free educational programming. last year, attendance for youth education programs at the Museum exceeded 3,500. _- This does not include..free.schaoLtaurs:HChictL~ould ad._~another 5,_000_in 2007.. Any consideration you may give this proposal will be sincerely appreciated. Meanwhile, if you have questions or require additional information, please let me know. Sincerely yours, Sarn Monroe President WSM/clw Attachment -~ PORT ARTHUR HISTORICAL SOCIETY MUSEUM OF THE GULF COAST Proposed Sources of Revenue September 1, 2008 -August 31, 2009 Lamar State College-Port Arthur $ 189,843 37.4 _.____ -City of Port Ai~niif _ _..___~~.--- _ __~_ . ~144,336~ _., --28:3-~.~_.~_ Port Arthur Historical Society 174 0 TOTAL PROPOSED 2008-09 BUDGET $ 508,779 100% Requested increase $68,336 in a grant to the Society which will reimburse Lamar-Port Arthur for 2 FTE. PORT ARTHUR HISTORICAL SOCIETY MUSEUM OF THE GULF COAST Projected Sources of Revenue September 1, 2007 -August 31, 2008 Lamar State College-Port Arthur $258,179. 50.8 City of Port Arthur. _____ _. __. _~ -76;OOu^ _. _ _____ _~ 1T.~ ___ _.. .._ Port Arthur Historical Society 174.600 TOTAL 2007-2008 OPERATING BUDGET $508,779 100% P. R. NO. 14863 JJA 9/1/08 RESOLUTION NO. A RESOLUTION APPROVING A CONTRACT BETWEEN THE CITY OF PORT ARTHUR, LAMAR STATE COLLEGE-PORT ARTHUR AND THE PORT ARTHUR HISTORICAL SOCIETY FOR THE PURPOSE OF FUNDING THE MUSEUM OF THE GULF COAST FOR THE 2008-2009 FISCAL YEAR IN THE AMOUNT OF $1.44,336, ACCOUNT # 140-1405-557.59-00, M97904 WHEREAS, the City Council recognizes that the Port Arthur Historical Society and the operation of the historic museum known as the Museum of the Gulf Coast are valuable assets in the community; now therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT, said resolution is contingent on the availability of funds in the 2008-2009 fiscal year budget, to be approved by the City Council. THAT, the City Manager is authorized to execute the contract attached hereto as Exhibit "A" on behalf of the City of Port Arthur with the Port Arthur Historical Society, and Lamar State College- Port Arthur providing funding for a portion of the operating budget of the Museum of the Gulf Coast, and THAT, a copy of the caption of this Resolution shall be spread upon the Minutes of the City Council. READ, AllOPTED, AND APPROVED, this day of September, 2008, AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: NOES: Mayor ATTEST: Terri Hanle, City Secretary APPROVED AS TO FORM: /`Z~ ~~~~ Mark Sokolow, City Attorney APPROVED FOR ADMINISTRATION: ~~ Steve` itzgibbons, City Manager Rebecca Underhill, Finance Director Z:finance/resolutions/museum Exhibit "A" THE STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS; COUNTY OF JEFFERSON AGREEMENT THIS AGREEMENT, made and entered into at Port Arthur, Jefferson County, Texas, between the PORT ARTHUR HISTORICAL SOCIETY (the "Society"), non-profit corporation, LAMAR STATF, COLLEGE-PORT ARTHUR and the CITY OF PORT ARTHUR, TEXAS (the "City"), a municipal corporation; WITNESSETH: WHEREAS, the PORT ARTHUR HISTORICAL SOCIETY owns the building located at 700 Procter Street in the City of Port Arthur, Texas, for the operation of an historical museum known as THE MUSEUM: OF THE GULF COAST (the "Museum"), with a purpose to collect, preserve, protect and display the history of Port Arthur and the Gulf Coast; and WHEREAS, the PORT ARTHUR HISTORICAL SOCIETY, LAMAR STATE COLLEGE- PORT ARTHUR, and the CITY OF PORT ARTHUR, in recognizing the importance of said museum and the benefits to be derived therefrom by patrons of the SOCIETY, the students, faculty, and staff of the State College, and the citizens and visitors to the preservation of the history of the City and economic development of downtown have jointly resolved to enter into an agreement to provide operating funds for said facility; and WHEREAS, the CITY OF PORT ARTHUR has agreed to provide operating funds for the museum for the tscal year in a sum not to exceed $144,366, said appropriation having been included in the City budget for the 2008-2009 fiscal year; and WHERF,AS, the remainder of the operating funding will be provided jointly by the PORT ARTHUR HISTORICAL SOCIETY and LAMAR STATE COLLEGE -PORT ARTHUR; NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements herein set forth, it is agreed between the parties as follows: THAT the PORT ARTHUR HISTORICAL SOCIETY agrees to operate the facility known as THE MUSEUM OF THE GULF COAST for the benefit of the State College, the City and the public with the operating funds for fiscal year 2008-2009 being provided jointly by the PORT ARTHUR HISTORICAL SOCIETY, LAMAR STATE COLLEGE-PORT ARTHUR, and the CITY OF PORT ARTHUR and ally other entities or persons that agree to provide a portion of said funds. THAT, the CITY agrees to fund the PORT ARTHUR HISTORICAL SOCIETY a sum not to exceed $144,336 for the 2008-2009 fiscal year (October 1, 2008 through September 30, 2009). Provided however, said sum shall be reduced if any other entities or persons in addition to the CITY, the SOCIETY and COLLEGE agree to provide a portion of said operating costs. THAT, the SOCIETY hereby agrees to use the funds payable hereunder from the CITY in accordance with the budget attached hereto and incorporated herein as Exhibit "A- I " and said funds shall be used only for public purposes. THAT, the SOCIETY shall keep books of account on all Museum expenses and revenues and shall submit a financial report to the CITY reflecting all receipts and disbursements by the SOCIETY to operate the Museum. THAT tl~e City Manager or his designated representative shall have, upon reasonable notice, the right to inspect all books and records of the SOCIETY. THAT upon termination of the operation of the Museum or dissolution of the PORT ARTHUR HISTORICAL SOCIETY, the Society shall deliver to the City all funds paid under this contract that have not been expended in accordance with this contract. Signed and agreed to on the day of , 20 PORT ARTHUR HISTORICAL SOCIETY By Sam Monroe, President Signed and agreed to on the day of 20 CITY OF PORT ARTHUR, TEXAS By Steve Fitzgibbons, City Manager Signed and agreed to on the day of , 20 LAMAR STATE COLLEGE -PORT ARTHUR By Sam Monroe, President MUSEUM OF THE GULF COAST Operating Budget 2008-2009 2Q07-08 20Q8-09 Salaries $258,179 $258,179 Professional Staff $114,008 Classified Employees 47,681 Student Employees 22,200 Benefits (Insurance, retirement, sick leave and vacation) 52,290 Security contract personnel 22,000 Utilities Electricity 68,000 68,000 Natural Gas 1,500 1,500 Water/Sewer Service 1,200 1,200 Telephone 2,000 2,000 Web Page 350 350 Insurance Building and General Liability 29,000 29,000 Building Maintenance Grounds keeping/Contract Labor 3,100 3,100 AC cooling tower supplies/maintenance 6,000 6,000 Elevator service 7,500 7,500 Security alarm 3,300 3,300 Pest Control 250 250 Miscellaneous Expenses Audit expense 7,200 7,200 Advertising/Public Relations 4,500 4,500 Goodwill/volunteer Expense 1,000 1,000 Institutional memberships (AAM, AASLH, TAMS, SETAC) 1,000 1,000 Conservational supplies 1,500 1,500 Office supplies 3,500 3,500 Expendable supplies 2,500 2,500 Postage expense 2,000 2,000 Traveling exhibits 7,500 7,500 Travel 3, 500 3, 500 Exhibit Expense 25,500 25,500 Programming 11,600 11,600 Fund Raising Events (Joplin, Mardi Gras, Gulf Coast Jam) 32,000 32,000 Contingency Allowance 2,000 2,000 Maintenance and Operations 2,000 2,000 Education Coordinator 10,600 10,600 Contract Labor/Commissions 10 500 10 500 TOTAL EXPENSES $508,779 $508,779 PORT ARTHUR HISTORICAL SOCIETY MUSEUM OF THE GULF COAST Proposed Sources of Revenue September 1, 2008 -August 31, 2009 Lamar State College-Port Arthur $ 189,843 City of Port Arthur 144,336 Port Arthur Historical Society _ 174.600 TOTAL PROPOSED 2008-09 BUDGET $ 508,779 37.4 28.3 100% Requested increase $68,336 in a grant to the Society which will reimburse Lamar-Port Arthur for 2 FTE.