ROSE BOWL OPERATING COMPANY

Transcription

1 ROSE BOWL OPERATING COMPANY Rose Bowl Game Michigan 21 Washington State 16

2 City of Pasadena City Council RBOC Board of Directors General Manager (1.00) Executive (3.75) Human Resources (0.50) Finance (2.25) Corporate Communications (0.50) Event Management (2.00) Stadium Operations (7.00) Facility (3.25) Pavilion Operations (2.00) Golf Course Complex (1.75) New Year s Game UCLA Flea Market Soccer Games Filming Minor Events General Facility Operations & Field General Facility Special Projects Capital Improvements Pavilion Operations & Golf Courses Restaurant Pro Shop (Contracted) Special Events Section 25 - Page 1

3 MISSION STATEMENT The mission of the Rose Bowl Operating Company (RBOC) is to improve the quality of life in Pasadena by providing top quality entertainment and by generating revenue through the operation of a world-class stadium and a professional quality golf course complex. PROGRAM DESCRIPTION The RBOC is a California non-profit, public benefit corporation, founded in 1995 by an act of the Pasadena City Council. As a legally separate entity, the RBOC has an independent board that governs its operations and adopts its annual budget. The operations of the RBOC are accounted for as a distinct component unit of the City consistent with generally accepted accounting principles. As such, the following information is for informational purposes only. The RBOC s primary purpose is to enhance economic and civic value to the City of Pasadena by managing a world-class stadium and a professional quality golf course complex in a residential open-space neighborhood. The RBOC is responsible to the residents of Pasadena to inform them of potential environmental impacts from the operation of the stadium, to take all reasonable preventive measures and to seek feedback from those impacted. The Rose Bowl s multifaceted events have included the annual New Year s Rose Bowl Football Game, with the 2002 and 2006 games also counting as the BCS National Championship Game, the standalone 2010 BCS Championship Game, 1984 Olympics Soccer Finals, 1994 Men s World Cup Soccer, 1999 Women s World Cup Soccer Finals, five (5) Super Bowl football games, UCLA home football games, a variety of concerts and other activities such as the monthly R.G. Canning Flea Market, car shows and filmings, all of which generate revenue for the Rose Bowl Fund. In addition, the RBOC is responsible for the management of the Brookside Golf complex through concessionaire contracts with American Golf Corporation and John Wells Pro Shop. The Department performs the following services: Manages a world-class stadium Manages a professional quality golf course DEPARTMENTAL RELATIONSHIP TO CITY COUNCIL GOALS Maintain fiscal responsibility and stability To address this goal, the RBOC strives to generate sufficient revenue to meet bond debt service and other operating budget obligations. In addition, the RBOC plans to update its Pro-Forma annually in order to project future revenue on a more regular basis. Improve, maintain and enhance public facilities and infrastructure The RBOC also strives to generate sufficient revenue to complete contractual obligations of the Renovation Project and to maintain the stadium for the long-term, which is a priority of the RBOC. Support and promote the quality of life and local economy The RBOC works diligently to attract events that will generate jobs as well as tax revenue for the City of Pasadena via hotels, shopping, restaurants and other sources. FISCAL YEAR 2013 ACCOMPLISHMENTS The Rose Bowl Operating Company accomplished the following during FY 2013: Continued to expand community outreach by having a series of community meetings, inviting Neighborhood associations, as well as organizations that have shown interest in the Rose Bowl. Such meetings include scoping sessions with regards to the Environmental Impact Report currently underway. Section 25 - Page 2

4 Continued the Construction Phase of the Renovation Project (Strategic Plan), with the construction and installation of 1 additional new electrical enclosures for electrical services, reconstruction of 5 Westside restrooms, along with the completion the new Pavilion building (Construction began on January 10 th, 2011). For the 14th consecutive year beginning with fiscal year ended 1999, obtained an unqualified opinion from the outside, independent auditors on its separate company financial statements and schedules, the latest fiscal year being fiscal year ended June 30, For 4th year in a row experienced food & beverage sales that were higher on average with the newer concessionaire than with the previous subcontractor. Continued a now 86 year tradition by staging an annual July 4th / Independence Day event with a variety of music acts and other forms of entertainment acts such as Jeff the Jumper and a DCI Group (motorcycle show and a drum corps international performance). Also, in the process of booking a similar event for July 4, 2013 for upcoming FY 2014, again featuring fireworks and other entertainment acts such as Kenny G. Staged the 99th Tournament of Roses football game, with a classic Pac-12 / Big-10 match-up between the Stanford Cardinal and Wisconsin Badgers. Wisconsin, the Big-Ten champions, returned for the 3rd year in a row for its 9th appearance overall. Stanford came away with a victory. Co-promoted the Rose Bowl Half Marathon for the 6th consecutive year, which was again profitable despite ongoing competition from many similar events and despite being held on a rainy day. Hosted the Autism Speaks event for the 10th consecutive year. Continued to conduct and tally surveys with customers of the Pro Shop, Restaurant and Golf Course at Brookside to determine where improvements can be made. Continued the Fairway Replacement phase for course # 2 and preliminary work on the Lake-Tunnel Water project, both part of the Golf Course Master Plan. Continued to collect the 9.5 percent of Golf Course Revenue from American Golf Corporation, approximately $519,000 plus another $100,000 (for the 3 rd of 5 years) to fund the multi-year Golf Course Master Plan and other golf-related CIP s. FISCAL YEAR 2014 ADOPTED BUDGET Operating Budget The FY 2014 Adopted Budget of $42,495,710 is $13,821,145 or 32.3 percent lower than the FY 2013 Revised Budget. Personnel A total of FTEs are included in the FY 2014 Budget. This includes a new Chief Revenue Officer who will drive business development and a new Manager to oversee the newly-constructed Pavilion building. YEAR-OVER-YEAR BUDGET CHANGES Rose Bowl Fund The FY 2014 total estimated expenses decreased from FY 2013 by approximately $13.8 million due primarily to decrease capital expense related to the Rose Bowl Renovation Project and savings resulting from the restructuring and extension of the 2006 outstanding debt ($662,000). Major completion of the project is anticipated to be soon. The total amount of decreased expense is partially offset by expense increases also relating the completed project. These increases consist, primarily, of costs related to the 2014 BCS game ($1.9 million); miscellaneous special major events as discussed below ($1.4 million); the addition of 2.00 FTE s (approximately $250,000) to support management and maintenance of the new pavilion building and a Chief Revenue Officer to increase overall revenue generation; various incremental expenses related to the renovated project of approximately $600,000; and additional expenses related to the Section 25 - Page 3

5 operation and management of the newly constructed pavilion and the new year s day event of $2 million. The Net Event Income from the BCS game is projected to be just under $4.4 million. In order to achieve a balanced budget for FY 2014, the RBOC anticipates allocating $ of this amount for that purpose. Some of increased expenses will be offset by revenue increases which consist of additional special major events, i.e., Justin Timberlake/Jay Z concert, Gold Cup Men s Soccer finals, and the 2014 BCS game. Additionally, FY 2014 revenues recognize the first full year of revenues associated with the renovation project. Golf Fund Cost Changes (from FY 2013 Revised): Most operating expenses are being increased by 2.1 percent as per the FY 2014 Budget Instructions. FTE Changes: Other than a slight internal allocation between the Stadium and the Golf Funds, there are no other changes for FY Revenue Changes (from FY 2013 Revised): Increase of approximately $103,105 to reflect the two 18-hole golf courses better performance during FY Capital Expenditures (from FY 2013 Revised): Increase of $1,000,000 to $1,300,000 in FY 2014, up from $300,000 in FY The Golf Course Master Plan comprises $800,000 of this increase and Brookside Clubhouse Upgrades, the other $200,000. FUTURE OUTLOOK The Rose Bowl Stadium Renovation is making the stadium better for the future. This renovation includes amenities for patrons such as new video screens, restrooms, widened seating access tunnels and a new press structure, which will include club seating, lounges and true luxury suite seating. It is this additional, premium club/luxury suite seating that will generate revenue from sales to cover the expense of the renovations and also provide additional opportunities for the stadium to generate ancillary revenue. In addition to the new revenue-generating opportunities provided by the renovation of the stadium, a philanthropic group, Legacy Connections, has been formed to spearhead private sponsorship/naming rights efforts to defray some of the project costs. To date, Legacy Connections has raised approximately $9.2 million in pledges for the cost of the renovation. The employees of the RBOC will use their best efforts in continuing to pursue those opportunities that will maximize and improve the RBOC s financial position. Section 25 - Page 4

6 SUMMARY OF APPROPRIATIONS BY DIVISION ($000) FY2011 FY2012 FY2013 FY2013 FY2014 Actual Actual Adopted Revised Adopted Division Appropriations $21,174 $22,602 $22,838 $25,399 $32,396 Capital 41,100 71,800 30,300 30,918 10,100 Rose Bowl Operating Company Total $62,274 $94,402 $53,138 $56,317 $42,496 SUMMARY OF SOURCES BY FUND ($000) FY2011 FY2012 FY2013 FY2013 FY2014 Actual Actual Adopted Revised Adopted Fund Rose Bowl $20,129 $21,465 $21,730 $24,292 $31,219 Golf Course 1,046 1,137 1,108 1,107 1,176 Bond Proceeds 40,000 70,000 16,000 16,000 0 Fund Balance 1,100 1,800 14,300 14,918 10,100 Rose Bowl Operating Company Total $62,274 $94,402 $53,138 $56,317 $42,496 SUMMARY OF FTES BY DIVISION FY2011 FY2012 FY2013 FY2013 FY2014 Actual Actual Adopted Revised Adopted Division Rose Bowl Golf Course Rose Bowl Operating Company Total Section 25 - Page 5

7 PERFORMANCE MEASURES FY 2012 Actual FY 2013 Target FY 2013 Mid-Yr Actual FY 2014 Target ROSE BOWL Council Goal(s): Maintain and ensure customer satisfaction, contract compliance, and consistent revenue performance with competitors. Objective: Maintain community, tenant and patron satisfaction on a consistent basis throughout the fiscal year. 1 Keep number of community complaints to 5 or fewer per quarter (20 per year) Clean surrounding neighborhoods within 24 hours of event Respond to disturbances related to events in a timely manner 100% 100% 100% 100% GOLF COURSE Council Goal(s): Maintain and ensure customer satisfaction, contract compliance and consistent revenue performance with competitors. Objective: Ensure 100% compliance with contract requirements % compliancee with contract requirements 100% 100% 100% 100% 2 Completion of contracted capital improvements by American Golf N/A N/A N/A N/A Objective: Ensure customer satisfaction with respect to 1) playing conditions, 2) aesthetics of golf course, 3) pro shop merchandise and 4) quality of food service. 1 Baseline of 3.0 for customer satisfaction with playing conditions and aesthetics of golf course. 2 Baseline of 3.0 for customer satisfaction with quality and appeal of pro shop merchandise. 3 Baseline of 3.0 for customer satisfaction with quality and delivery of food service Objective: Compare revenue figures with those of other golf courses. 1 Gather data from other golf courses regarding number of rounds 162, ,000 71, ,000 (CA=$139,992) (CA=$68,623) 2 Gather data from other golf courses regarding green fees, using $4,080,461 $3,800,000 $1,872,978 $3,850,000 (CA = $4,094,219) (CA = $2,057,441) 3 Gather data from other golf courses regarding cart rental fees, $1,295,607 $950,000 $582,677 $1,100,000 (CA=$845,643) (CA=$458,336) Note: CA = Competitors' Average Section 25 - Page 6