Item 9 - Reso to Amend PCPA Fees within Community Services Section of the Master Fee ScheduleAugust 2, 2022, Item # 9 DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT City of Poway August 2, 2022 Honorable Mayor and Members of the City Council Audrey Denham, Director of Community Service~ Roger Morrison, Senior Management Analyste (858) 668-4581, rmorrison@poway.org CITY COUNCIL Resolution Amending the Poway Center for the Performing Arts Fees Within the Community Services Section of the Master Fee Schedule At a workshop in April 2021, the City Council directed staff to review the pricing, cost structure, and operations of the Poway Center for the Performing Arts (PCPA) with a goal of long-term reduction in the City's subsidy of the facility. Staff is currently preparing a Request for Proposals to select a consultant to perform a formal operational and fee study. In the interim, staff is recommending adjustments to rental and staff fees at the PCPA to keep pace with inflation. Recommended Action: It is recommended the City Council take public input, close the public hearing, and adopt the Resolution Amending the Poway Center for the Performing Arts Fees Within the Community Services Section of the Master Fee Schedule. Discussion: The City Council and community support the mission of the PCPA to provide high-quality, professional programming, culturally enriching experiences for young people as both audience and participants, and performing arts presentations by community-based organizations. However, they have expressed concern about the ongoing annual operating subsidy paid for from the City's General Fund. Net subsidy of PCPA operations after subtracting revenue is estimated at $800,000 to $950,000 depending on each year's actual expenses and revenues. The City remains committed to ownership and operation of the PCPA and is taking a thoughtful and comprehensive approach to plan for the best and most sustainable future for the PCPA. At the direction of Council, staff is taking a variety of steps to achieve this goal: 1. Conducting a feasibility study to determine the possibility of an endowment fundraising campaign to help support PCPA operations and maintenance. 2. Negotiating cost sharing with the Poway Unified School District. 1 of9
August 2, 2022, Item # 9 3. Preparing a Request for Proposals for a professional mainstage presenter with an agreement that is more financially favorable to the City than the current agreement with Poway OnStage. 4. Preparing a Request for Proposals for a complete operational and fee study that will review all aspects of PCPA operations including booking, ticketing, concessions, policies and procedures, and fee structures. This study will produce recommended changes to implement best practices and/or other operational changes to improve efficiency, decrease the operating subsidy, and generate additional revenue for the facility. Because costs continue to rise, adding a CPI increase to existing fees is recommended to help maintain revenue and ensure fees do not fall farther behind while the comprehensive operational and fee study is being completed. The annual CPI increase for the San Diego-Carlsbad region last year was 5.21 %, and this is the amount proposed to be applied to the existing fees. If approved, the increase would take effect on September 1, 2022. This is a one-time adjustment, as staff anticipates presenting a new fee schedule to the City Council following completion of the upcoming fee study. The resulting fees are shown in the Resolution and redlined Fee Schedule included as Attachments A and B. Because there are special agreements governing the fees paid by Poway OnStage and Poway Unified School District, these fees in the Master Fee Schedule apply only to community group rentals. Use by rental groups, which drives cost, varies significantly in terms of hours, days and number of staff required based on performance complexity. Applying the fee modifications to some typical community group rentals shows how the increases would affect these groups: Rental Current Cost Cost+ CPI Increase Metropolitan Educational Theatre (Nonprofit) $19,140 $20,010 $870 Poway Symphony Orchestra (Nonprofit) $9,575 $9,915 $340 So Cal Dance Winter Recital (For-Profit) $5,675 $5,823 $148 Adjusting the fees by CPI would provide an estimated $10,000 in additional revenue in FY2022-23 based on current FY2022-23 projections adjusted by the CPI. The redlines also reflect some minor cleanup of language in the Fee Schedule to clarify the line items and ensure the schedule aligns with current operations. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: Adoption of this Resolution would provide an estimated $10,000 in additional revenue next year based on current FY2022-23 projections. Public Notification: Notice of Public Hearing was published in the Poway News Chieftain on July 21 and July 28, 2022. 2 of9
August 2, 2022, Item # 9 Attachments: A. Resolution 8. Redlined Fee Schedule Reviewed/ Approved By: Wendy serman Assistant City Manager 3 of9 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch~ City Manager
August 2, 2022, Item # 9 RESOLUTION NO. 22-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, AMENDING THE POWAY CENTER FOR THE PERFORMING ARTS FEES WITHIN THE COMMUNITY SERVICES SECTION OF THE MASTER FEE SCHEDULE WHEREAS, on February 16, 2016, the City Council adopted Resolution No. 16-002, Amending the Poway Center for the Performing Arts Fees Within the Community Services Section of the Master Fee Schedule; WHEREAS, it is necessary to amend the Community Services Section of the Master Fee Schedule to update the staff, rental, and use fees of the Poway Center for the Performing Arts in order to improve recovery of the cost of providing theater services and rental to user groups. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: Those rental client fees for the Performing Arts Center presented at this meeting, and set forth in Exhibit 1 to this Resolution, are hereby approved and adopted, and shall be effective September 1, 2022. SECTION 2: Effective September 1, 2022, the Poway Center for the Performing Arts items in the Community Services section to the City's Master Fee Schedule are deleted and replaced with the Poway Center for the Performing Arts items in the Community Services Section to the Master Fee Schedule attached to this Resolution as Exhibit 1 as if set forth in the Master Fee Schedule in full, therein. SECTION 3: This Resolution shall become effective immediately provided, however, that the fees and charges contained in Exhibit 1 shall not take effect until September 1, 2022. 4of9 ATTACHMENT A
August 2, 2022, Item # 9 Resolution No. 22-Page 5 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the second day of August, 2022, by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 5 of 9
August 2, 2022, Item # 9 Exhibit 1: Revised Fee Schedule Poway Center for the Performing Arts N/C A PCPA-AII Areas Except Courtyard: $ Non-Profit Group hourly 1,518 rate six-hour minimum $ 1,896 For-Profit Group hourly rate N/C A PCPA -All Areas Except Courtyard: Non-Profit Group hourly additional hours $ 253 rate $ 316 For-Profit Group hourly rate N/C A Courtyard Non-ProfiUFor-Profit Group $ 105 hourly rate N/C A Lobby Non-ProfiUFor-Profit Group $ 105 hourly rate N/C A Green Room Non-ProfiUFor-Profit Group $ 55 hourly rate Poway Center for the Performing Arts (204020) Rental Deposits First day $ 300 Each additional day $ 150 Cleaning/Damage Deposits PCPA $ 300 refundable cleaning/damage deposit Cancellation Fees -if applicable PCPA full deposit forfeit Staffing Fees -Per Hour Technical Theatre Coordinator eight $ 32 per hour (8) hours/day Technical Theatre Coordinator in $ 42 per hour excess of eight (8) hours/day Stage Technician eight (8) hours/day $ 24 per hour Stage Technician in excess of eight $ 36 per hour (8) hours/day Front of House Coordinator eight (8) $ 32 per hour hours/day Front of House Coordinator in $ 42 per hour excess of eight (8) hours/day Front of House Assistant eight (8) $ 21 per hour hours/day 6 of9
August 2, 2022, Item # 9 Front of House Assistant in excess of eight (8) hours/day Box Office Coordinator eight (8) hours/day Box Office Coordinator in excess of eight (8) hours/day Box Office Assistant eight (8) hours/day Box Office Assistant in excess of eight (8) hours/day Ticketing Fees Consignment Handling Other Fees Non-Intermission Fee Merchandise Sales Commission Art Exhibition Commission Piano Tuning Additional Equipment 7 of9 $ 32 $ 32 $ 42 $ 21 $ 32 $ 2 $ 5 $ 158 per hour per hour per hour per hour per hour each ticket printed each Resolution No. 22-Page 7 15% Nonprofit/ 20% For Profit 15% Nonprofit/ 20% For Profit Actual cost Actual cost
August 2, 2022, Item # 9 Redlined Fee Schedule Powa Center for the Performin Arts GemefPCPA-AII Areas Except Courtyard: six-hour minimum PCPA -All Areas Except CourtyardGemef: additional hours Courtyard with Performance/Exhibition only Lobby with Performance/Exhibition only Green Room Performing Arts Center (204)Poway Center for the Performin Arts 204020 Rental Deposits First day Each additional day Cleaning/Damage Deposits PCPA Cancellation Fees -if applicable PCPA Staffing Fees -Per Hour Technical Theatre Coordinator eight (8) hours/day Level 1 Technical Theatre Coordinator in excess of eight (8) hours/day Level 2 Stage Technician eight (8) hours/day---&--M Receptions Level 1 Stage Technician in excess of eight (8) hours/day Level 2 Front of House Coordinator eight (8) hours/day & Art Receptions Level 1 Front of House Coordinator in excess of eight (8) -hours/day Level 2 Front of House Assistant eight (8) hours/day & Art Receptions Level 1 N/C A $ 1,5184-,44-G Non-Profit Group hourly rate $ 1 8964--,WQ For-Profit Grau $ 253240 $ 316JOO N/C A Non-Profit Group hourly rate N/C A $ Non-Profit/For-Profit Group 1054-00 hourly rate $ 100 N/C A $ Non-Profit/For-Profit Group 1054-00 hourly rate $ 100 N/C A $ Non-Profit/For-Profit Group 55~ hourly rate $ 52 $ 300 $ 150 $ 300 refundable cleaning/damage deposit full deposit forfeit $ per hour 32JO $ per hour 424-0 $ per hour 24~ $ per hour 3634 $ per hour 32JO $ per hour 424-0 $ per hour zi~ 8 of9 ATTACHMENT B
August 2, 2022, Item # 9 Front of House Assistant in excess of eight (8) hours/day Level 2 Box Office Coordinator eight (8) hours/day-Level 1 Box Office Coordinator in excess of eight (8) hours/day Level 2 Box Office Assistant eight (8) hours/day-Level 1 Box Office Assistant in excess of eight (8) hours/day Level 2 Ticketing Fees Consignment Handling Other Fees Non-Intermission Fee Merchandise Sales Commission Art Exhibition Commission Facility .A.rt Displays Piano Tuning Additional Equipment Canopy Use 9 of9 $ 32W $ 32W $ 42@ $ 21~ $ 32W $ $ $ 1584-W per hour per hour per hour per hour per hour 2 each ticket printed 5 each 15% Nonprofit/ 20% For Profit 15% Nonprofit/ 20% For Profit Actual cost Actual cost $ 261 Resolution No. 22-Page 9