REPORT TO THE CITY COUNCIL
FROM: GEORGEANNE A. WHITE, City Manager
Office of Mayor & City Manager
BY: RUTH F. QUINTO, CPA, Assistant City Manager/Interim City Controller
Office of Mayor & City Manager
SUBJECT
Title
***RESOLUTION - Adopting the 573rd Amendment to the Master Fee Schedule Resolution No. 80-420 to add and revise various fees for the Tower Theatre and move all Tower Theatre fees from the General Government Section to the Parks, After School, Recreation, and Community Services Section (Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends that City Council adopt the 573rd Amendment to the Master Fee Schedule Resolution No. 80-420 adding and revising various fees for the Tower Theatre and moving all Tower Theatre fees from the General Government Section to the Parks, After School, Recreation, and Community Services Section.
EXECUTIVE SUMMARY
The attached Resolution to adopt the 573rd Amendment to the Master Fee Schedule (MFS) Resolution No. 80-420 adding and revising fees, including segmented rates, adding clarifying language to, and moving the schedule from the General Government Section to the Parks, After School, Recreation, and Community Services Section, as reflected in the attached Exhibit A. This revision clarifies the fees approved per the 572nd Amendment.
BACKGROUND
Fees for the Tower Theatre were previously adopted in August 2022 to establish theatre operations cost recovery. Since their adoption, the Administration has worked to refine the use fees for the theatre based on an evaluation of the ongoing operation and management of the theatre. The proposed changes, highlighted in red on the attached Exhibit A, clarify the application of the previously adopted fees and include several new fees to address the use of smaller portions of the theatre, as well as the recovery of certain event costs.
Clarification of Fee Calculation: At the top of the fee schedule, the language referencing the rates and overtime uses of the Tower Theatre has been refined to clarify that the rate for the use of the Tower Theatre will be the sum of the applicable standard use charges. This “Basic Rate” will be the applicable use fee for the hours the theater is reserved, plus any applicable event costs. Further, the fee for overtime use will be a pro rata charge per hour, based on the Basic Rate and any other applicable charges.
For fees charged to non-profits, language was added clarifying how a non-profit organization will be defined for purposes of determining eligibility for the nonprofit rate. Non-profit rates are allowable under the federal Office of Management and Budget uniform guidance in order to support the fundamental operations of a 501(c)(3) organization and based on a reduced rate that does not pass-through indirect costs.
Lastly, “Insurance” was added to the “Bond/Insurance” requirement line and noted as subject to Theatre use policy.
Modifications to Fees: This update includes proposed segmented rates to provide for evening events less than six hours, as indicated in the 6pm to 9pm and 6pm to 10pm rates. These rates are equivalent to 50% and 66%, respectively, of the six-hour 6pm to midnight rate. Further, fees were added to allow for use of the lobby only and lounge only.
The amendment also incorporates certain event costs, such as sound and lighting, and clarifies that those costs will be passed through to theatre users, who will be charged the actual cost of these services.
Lastly, the proposed amendment adds language addressing cancellations. Shows cancelled less than 60 days prior to the event will be charged 100% of the reservation deposit. For shows cancelled 60 or more days prior to an event, there is no change to the previously approved 20% of reservation deposit. In addition to the reservation deposit, for cancelled events users will also be charged any costs actually incurred by the City.
ENVIRONMENTAL FINDINGS
This is not a project pursuant to CEQA guidelines Section 15378.
LOCAL PREFERENCE
Local preference was not implemented as this amendment to the MFS does not include a bid or award of a construction or service contract.
FISCAL IMPACT
The use fees proposed under the 573rd Amendment do not change the overall impact of the listed fees approved under the 572nd Amendment. The use fees are estimated to generate approximately $18,500 per month, or $220,000 annually to cover the actual costs of the theatre use when the theatre is being reserved.
Attachments:
Resolution - 573rd Amendment to the MFS
Revised Master Fee Schedule Exhibit A