Item 6 - Resolution Establishing 3rd Party Rental Rates for PCPA
AGEND"'-EPORT SUMMARY
TO:
Honorable Mayor and Members of the City Council
James L. Bowersox, City Man~ ~+ ~
.I\.... ~ -,.~
11\ ~"'nl'co
John D. Fitch, Assistant City Manager
Robert L. Thomas, Director of CommuDl Services ~
Michael J. Putnam, Performing Arts Manage~_
June 13, 1995
FROM:
INITIATED BY:
DATE:
SUBJECT:
A Resolution Establishing Third Party Rental Rates
for the Poway Center for the Performing Arts and
Rescinding Resolution No. 93-094
ABSTRACT
In order to meet the established goal of reducing the General Fund subsidy of the Poway
Center for the Performing Arts. it is both necessary to reduce expenses and enhance
revenue. An increase in rental rates for Fiscal 1995-1996 to $120 an hour with a five
hour minimum rental for non-~rOfit. community-based organizations. and commensurate
increases for other rental c ients. are proposed as one element of the revenue
enhancement plan in the groposed 1995-1996 annual operating budget for the Performing
Arts Division (204) of t e Community Services Department.
ENVIRONMENTAL REVIEW
This item is not subject to CEQA review.
FISCAL IMP ACT
This action is designed to increase the revenue from rental activity at the Poway
Center for the Performing Arts by approximately $20.000 in Fi sca 1 1995-1996.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
Additional notification sent to Performing Arts Advisory Committee and all rental
clients of the Poway Center for the Performing Arts in Fiscal 1994-1995.
RECOMMENDATION
It is recommended that the City Council approve the attached Resolution Establishing
Third Party Rental Rates for the Poway Center for the Performing Arts and ReSCinding
Resolution No. 93-094.
ACTION
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JUN 1 3 1995 IlEN6
~ AGENDA REPOR'!
CITY OF POW A Y
TO:
. Honorabl e Mayor and Members ~~~ Ci ty Counci 1
James L. Bowersox. City Man~
INITIATED BY: John D. Fitch. Assi stant Ci ty ManagerDf')'\-
Robert L. Thomas. Director of Communit9 Services
Michael J. Putnam. Performing Arts Manager~ _
June 13. 1995
~
FROM:
DATE:
SUBJECT:
A Resolution Establishing Third Party Rental Rates
for the Poway Center for the Performing Arts and
Rescinding Resolution No. 93-094
BACKGROUND
In March of 1990. the City Council established rental rates for the Poway
Center for the Performing Arts at $18.00 per hour for the first 3 hours and
$36.00 every hour thereafter for non-profit community-based organizations.
plus 10% of gross ticket sales. In fiscal year 1990-1991. total revenue from
rental activity was $39.504.00.
On June 19.1991. the City Council revised the rental rates for non-profit.
community-based organizations to $40.00 an hour plus 10% of gross ticket
sales. Following the rental increase of June. 1991. the total revenue from
rental activity in fiscal 1991-92 was $81.067.00.
On June 29. 1993. the City Council adopted Resolution No. 93-094 setting
revised rental rates for the Performing Arts Center including a rate of $60.00
an hour for non-profit organizations with a four hour minimum rental plus 10%
of gross ticket sales. Following the rate increase of June. 1993. the total
revenue from rental activity in fiscal 1993-1994 was $72.659.00. This figure
would have been in excess of $100.000 except for the default by Theatre
Corporation of America/Pasadena Playhouse.
A listing of rental clients and the hours of usage of the PCPA for a period of
ei ghteen (18) months endi ng in December. 1994 is attached.
FINDINGS
In preparing the proposed 1995-1996 annual operating budget for the Performing
Arts Oivision (204) a number of revenue enhancements were included with
significant expense reductions to produce a reduction in the General Fund
subsidy of the Performing Arts Center of around $100.000.
The Performing Arts Advisory Committee at its regularly scheduled meeting on
May 10. 1995 approved a staff recommendation for revising the rental fee
structure Bnd increasing rental fees for the Performing Arts Center.
ACTION:
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Agenda Report
June 13. 1995
Page Two
The Performing Arts Advisory Committee has. as one of its members. a
designated representative of the community user groups. This position on the
Committee receives a new appointee annually so as to provide as much
participation by user groups as possible.
The Performing Arts Advisory Committee expressed its concern over the impact
of this rental rate increase on small bUdget community-based organizations;
however. it also fully endorsed the need for the Performing Arts Center to
have the rental activity at the Center carry its appropriate share of the
Center's operating overhead.
It was proposed that a scholarship fund be established to be administrated by
the Performing Arts Advisory Committee to assist those community-based
organizations who could demonstrate an inability to meet the burden of this
proposed rental fee increase. A number of very creative ideas were generated
whi ch wi 11 be the subject of another report to the Counci 1.
The proposed revisions to the rental fee structure include eliminating the
existing multiple rental categories and sUbstituting two (2) new categories:
1) all non-profit and non-commercial groups and organizations; and. 2)
commercial for profit entities and all other rentals.
The proposed rental fee increase is to set the base hourly rental fee for
Category 1 renters at $600 for a five hour minimum rental and $150 for each
additional hour or $1.000 for a 12 hour rental period. The hourly fee for
Category 2 rentals would be $850 for a five hour minimum rental and $200 for
each additional hour or $1500 for a 12 hour rental period.
This fee structure is designed to promote the use of the discounted 12-hour
rental period. The list of typical rental clients and their hours of usage of
the PCPA facility (attached) clearly shows that the largest number of uses are
at or under the minimum rental periOd being proposed. The next largest groups
of users would benefit from the discounted 12-hour rate.
As part of this fee restructuring. it is also proposed that the percentage of
gross ticket sales fee be eliminated for both categories. Removing the
percentage gross ticket sales from the rental rate formula will allow rental
clients to more accurately budget for theater rental costs. and will enable
them to cover the increased rental fees by a modest increase in their ticket
prices.
It is projected that with the proposed increase in rental rates. the total
revenue from rental activity in fiscal 1995-1996 will be approximately
$98.000.00.
ENVIRONMENTAL REVIEW
This action is not subject to CEOA review.
FISCAL IMPACT
This action is designed to increase the revenue from rental activity at the
Poway Center for the Performing Arts by approximately $20.000 in Fiscal 1995-
1996.
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JUN 1 3 1995 ITEM 6
Agenda Report
June 13. 1995
Page Three
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
Additional notification sent to Performing Arts Advisory Committee and all
rental cl ients of the Poway Center for the Performing Arts in Fiscal 1994-
1995; advertisement placed in the Poway News Chieftain.
RECOMMENDA nON
It is recommended that the City Council approve the attached Resolution
Establishing Third Party Rental Rates for the Poway Center for the Performing
Arts and Rescinding Resolution No. 93-094.
JLB:JDF:RLT:MJP:gs
Attachments:
Resolution
JUN 1 3 1995 ITEM 6
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RENTAL ORGANIZATIONS - CALCULATIONS OF HOURS
PERIOD: JULY, 1993 THROUGH DECEMBER, 1994
5 or Less Hrs 6-12 Hrs 12 or More
Per Day Per Day Hrs/Day
RENTAL ORGANIZATIONS
l. Black Mt. Dance 1 2
2. Touch of Class 1
3. Coastal Comm.Band 1
4. R.B. Troubadours 1 1
5. New West Ballet 3 1
6. Temple Concert 1
7. Napya Proiya Dance 2
8. Samahan Philippine Dance 1
9. SD Children's Theatre 1 4
10. R.B. Chorale 1 2
1l. pomerado Comm.Band 1
12. R.B. Children's Chorus 1
13. California Ballet 1 3
14. Black Mt. Dance 1 4 1.
15. New West Ballet 1 4
16. Lawrence Jewish Films 3
17. Pennington "Kochanski" 1
18. Southwest Symphony Orch 1
19. Palomar Orch.Concert 3
20. Classics Unlimited 1
2l. Pomerado Comm.Band 1
22. Gujarati Association 1 1
23. Palomar civic Youth Orch 1
24. Classics Unlimited 1
25. "Nels" Concert 1
26. R.B. Troubadours 1
27. R.B. Chorale 1 1
28. CA. Ballet School 4
29. R.B. Dancers 2 1
30. Boys & Girls Club/Esc. 2
3l. Pomerado Comm.Band 1
32. Black Mt. Dance 2
33. Coastal Comm.Band 1
34. Touch of Class Dancers 1
35. Pacific Rep. Ballet 1 1
36. New West Ballet 3
37. SDSU Continuing Ed. 1
38. SD Children's Theatre 1 1 5
39. Samahan Philippine Dance 1
40. Palomar Comm. Orch 2
4l. Hidden Valley Perf.Arts 1
42. California Ballet 5
43. pomerado Comm.Band 1
44. R.B. Children's Chorus 1
45. New West Ballet 1 4
46. Black Mt. Dance 5 1
TOTALS: 44 37 26
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RESOLUTION NO. 95-
A RESOLUTION OF THE CITY OF POWAY, CALIFORNIA
ESTABLISHING THE SCHEDULE OF FEES FOR RENTAL OF
THE POWAY CENTER FOR THE PERFORMING ARTS AND
RESCINDING RESOLUTION NO. 93-094
WHEREAS, fees for the use of the poway Center for the
Performing Arts by third parties, other than the City of poway
and the poway Unified School District, have been established to
provide for the recovery of operational and maintenance costs
associated with said facility.
NOW, THEREFORE, the city Council of the City of poway does
hereby resolve as follows:
1. The usual and customary rental rate schedule of fees for
third party uses of the poway Center for the Performing
Arts as follows:
Catecrorv 1: Private non-profit, not-for-profit, non-commercial
and governmental entities.
Rental Rate:
$ 600 (minimum 5 hour period)
$ 150 per hour (each additional hour)
$1,000 flat fee for a 12 hour period.
or
Catecrorv 2:
entities.
Private for-profit, commercial and all other
Rental Rate:
$ 850 (minimum 5 hour period)
$ 200 per hour (each additional hour)
$1,500 flat fee for a 12 hour period
or
2. The City reserves the right, when in its sole opinion, the
interests of the community as a whole, as well as the
established mission of the poway Center for the Performing
Arts, are better served; to negotiate individual rental
agreements whose terms may vary from the rates established
herein.
3. Resolution No. 93-094 is hereby rescinded.
JUN 1 3 1995 ITEM b
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Resolution No. 95-
Page 2
PASSED, ADOPTED AND APPROVED, by the city Council of the
City of Poway, California at a regular meeting thereof this 13th
day of June. 1995.
Don Higginson, Mayor
ATTEST:
Marjorie K. Wahlsten, City Clerk
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO )
I, Marjorie K. Wahlsten, City Clerk of the City of Poway, do
hereby certify that the foregoing Resolution, No. 95-____, was
duly adopted by the City Council at a meeting of said City
Council held on the 13th day of June, 1995, and that it was so
adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Marjorie K. Wahlsten, City Clerk
JUN 13 1995 ITEM 6
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