HomeMy WebLinkAbout09/15/1992, 2 - LIBRARY COMMUNITY ROOM FEES lllll^I�IIIIIIIIIII�III II MEETING DATE:
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COUNCIL AGENDA REPORT' ITEM NUMBER
FROM: Ken Hampian, Assistant City Administrative Officer __,,,,fi�rr
Prepared By: Dave Smith Building Maintenance Supervisor and Deb Hosslio
Administrative Analyst
SUBJECT: Library Community Room Fees
CAO RECOMMENDATION: Adopt a resolution establishing fees for using the
Community Room and Conference Room located in the City-County Library.
DISCUSSION:
Background
and
As part of our agreement with the County for the long term use of the City-County Library,
the City is responsible for managing the Community Room and Conference Room located
on the ground floor of the facility. Since the opening of the Library, the City has allowed
the public to reserve the rooms on a first come, first serve basis free of charge (using a
reservation system administered by the Public Works Department). The rooms are
currently made available to the public from 8:00 am to 9:30 pm during the week and 9:00
am to 9:30 pm on weekends (except for City holidays).
As expected, the rooms are used extensively by the community (there are no comparable
facilities offered free of charge). Over the course of 1991-92 alone, the City reserved the
rooms approximately 575 times for a variety of activities ranging from club meetings to
theatrical productions. In fact, the rooms have become so popular with the community
that the City can rarely reserve them for our own use.
This popularity, while welcomed, has reached a point to where the actual costs to
reasonably manage the rooms far exceeds the original "self service" concept. As initially
conceived, maintenance staff stationed at City Hall were to merely be responsible for
opening and closing the rooms for users (thereby only modestly impacting maintenance
workload). In actuality, however, maintenance staff responsibilities have become very
significant. They are responsible for making sure that the rooms are properly set up, the
appropriate equipment is available for the user, City ordinances are observed (e.g., fire
code),the rooms are adequately cleaned at the conclusion of their use, as well as a long
list of other unanticipated user needs. In addition, the City's practice of allowing the
public to reserve the rooms on the weekends has become quite costly as the City must
pay overtime to the maintenance staff (no maintenance staff work regular hours on
weekends).
Managing the reservation system for the rooms is also very labor intensive. The
secretarial pool in Public Works devotes approximately 30 hours per week to answering
questions from the public about the rooms and processing reservation applications. Staff
has determined that the City expended over $42,000 in personnel costs alone to support
the Community Room and Conference Room operation in 1991-92.
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Ze COUNCIL AGENDA REPORT
Offering the facilities free of charge has also created a problem that staff did not
anticipate. Private sector operators of comparable rental facilities often feel that the City
is unfairly competing with them. This has become somewhat controversial as the City
makes the rooms available to all members of the community and does not distinguish
between non-profit and for-profit users. Therefore, the rooms are used regularly for
private sector profit making activities at no cost (e.g., attorneys using the rooms for
seminars to generate more clients, etc.).
Proposed Fee Schedule
i
Given the cost of managing the rooms, our concerns over competing with the private
sector, and City's current financial problems, it no longer seems prudent to make the
rooms available to the community free of charge. As such, staff is proposing that the City
institute the following fee schedule for the use of the Community Room and Conference
Room (the City and County would continue to be exempt from the fees):
i
Standard Non-Profit
Rate Agency Rate
Community Room
■ All Day. (over 6 hrs) $200 $100
■ Half Day (6 hrs or less) $100 $ 50
Conference Room
!
■ All Day (over 6 hrs) $ 50 $ 25
■ Half Day (6 hrs or less) $ 25 $ 15
i
I In order to develop the fee schedule, staff first contacted eleven private and public rental
facilities throughout the City to determine current market rates (See Attachment 2 for,
survey results). It should be noted that not all facilities contacted represented exact
I comparisons, however, they served to assist in developing benchmarks for fees. This
information was then compared against what it costs to manage the rooms and the City's
fee recovery policy (which recommends high levels of cost recovery for services that
compete with private sector operations) to determine the recommended fee schedule.
i
In recognition of the burden the fees may impose on non-profit groups, staff recommends
that the City structure the fees so that non-profit groups (defined as any organization with
federal non profit status - 501 C3) pay approximately 50% of the standard rate established
for all other users as shown above. Staff felt that it was appropriate to offer lower fees
to non-profit groups given the public service nature of their activities.
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Oman COUNCIL AGENDA REPORT
Staff also recommends that implementation of the proposed fee schedule be deferred until
November 15, 1992 (two months after Council adoption) to help insure a smooth
transition.
CONCURRENCES:
I
A letter was sent to all regular users of the rooms advising them of the proposed fee
schedule as well as the date the Council would hold a public hearing to discuss them.
As of report completion, staff had only received two inquiries on the proposed fees (with
no objections).
FISCAL IMPACT:
Staff has conservatively estimated that the proposed fees will generate approximately
$26,000 annually. This assumes that the rooms will be rented in some combination that
generates$500 per week. All revenues generated from room rental will be credited to the
General Fund and used to contribute toward maintaining services to the entire community
which are being severely challenged as a result of the current fiscal environment.
In this regard, as Council is well aware, the City has already cut numerous capital
projects, frozen positions and eliminated others, and directed departments to develop
further cost reduction options as we move into the next Financial Plan period. While the
revenue derived from these fees will obviously not appreciably address these larger
j financial issues, it is important to take even small steps as we transition into an era where
it is no longer possible to use general community resources to provide free services to
fairly specific user groups.
ALTERNATIVES:
I
Develop a fee schedule that offers the rooms to non-profit groups at 25% of the
rate established for all other users (as compared to 50% as recommended by staff)
Given the large number of non-profit groups that use the Community Room and
Conference Room and the public service nature of their activities, the Council may want
to consider providing non-profit groups with a greater"price break" by setting fees at 25%
of the standard rate recommended for all other users (as an example, non-profit groups
could rent the community room for a full day for $50 as opposed to $100 recommended
i by staff).
While there are merits to this approach (e.g., reducing the burden on many already "over-
extended" organizations), staff recommends against it. It is staff's opinion that the
recommended fees are reasonable and fair - the non-profit groups are provided a quality
facility at a rate well below market value and the City recoups a much lower portion of the
costs expended for managing the rooms.
�lillu'i iil� ►c�lull IIity o f San S OBISPO
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COUNCIL AGENDA REPORT
Continue the practice of providing the rooms free of charge to all users
The Council could opt to continue its current practice of providing the rooms free of
charge to all users. Given the City's adopted user fee cost recovery policy, the costs to
manage the rooms, our concern over competing with the private sector, and the City's
current financial position, however, it is not recommended that this alternative be pursued.
ATTACHMENTS:
Resolution
j Survey of Room Rental Facilities
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RESOLUTION NO. (1992 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING FEES FOR USING THE COMMUNITY ROOM AND CONFERENCE
ROOM AT THE CITY-COUNTY LIBRARY
WHEREAS, it is the desire of the City of San Luis Obispo to recoup the costs
associated with allowing the public to use the Community Room and Conference Room
at the City-County Library; and
WHEREAS, the City of San Luis Obispo has completed a comprehensive analysis
to determine the costs associated with operating the Community Room and Conference
Room; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo that the following fees be instituted for using the Community Room and
Conference Room at the City-County Library commencing on November 15, 1992:
Standard Non-Profit
Rate Agency Rate
Community Room
■ All Day (over 6 hrs) $200 $100
■ Half Day (6 hrs or less) $100 $ 50
Conference Room
■ All Day (over 6 hrs) $ 50 $ 25
■ Half Day (6 hrs or less) $ 25 $ 15
1) The City and County of San Luis Obispo are exempt from these fees
2) To qualify for non-profit status an agency must possess 501C3 tax exempt status
from the Internal Revenue Service
Page 2
Resolution No. (1992 Series)
Upon motion of seconded by and
on the following roll call vote:
AYES:
NOES:
ABSENT:
the resolution was adopted this day of 1992.
Mayor Ron Dunin
ATTEST:
Pam Voges, City. Clerk
APPROVED:
City AcIfninistrative Officer
City Attorney
i:library2
Attachment "2"
CONFERENCE ROOM RENTAL RATES
Facili 150 40 15-25
Monday Club M-Thurs $200 (add $50/kitchen) $150/half day rental
543-2636/Beth F & Sat $350 (add $50/kitchen) less than 100 people $275/$180 on
Sundays
Security deposit equal to base rental ($200 minimum)
Veteran's Hall (500) (175)* (75)*
549-5219/Denise $130 $50 $50
No food/beverage in this room
* Kitchen located in basement additional $25 fee
Reservation fee $25 non-refundable
Security deposit required $50
Embassy Suites $400 $150 $150
549-0800/Tami Catering done in-house/if catered meal provided then rental rate is
waived/no kitchen facilities available to renters
Security deposit not required
Sands $155 $85 $50
544-0500/Vicki No kitchen facilities
Security deposit not required
Royal Oak $225 $150 $150
544-4410/Diane Restaurant/catering in-house or outside
Must secure reservation with credit card or prepayment in advance
Security deposit not required
Margie's Diner ----- $50 $50
541-2940/Margie Restaurant/no kitchen facilities
Security deposit not required
La Questa Inn --- ----- $55
543-2777/Cindy No kitchen facilities
Security deposit not required
Apple Farm ---- ----- $75
544-2040/Kim Rental fee must be paid in advance
Security deposit not required
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Conference Room Rates
Page 2
Facilijy 150 40 15-25
Madonna Inn (250) (175) (60)
543-300/Edna $300 $225 $150
Restaurant/no kitchen facilities
Security deposit not required
Odd Fellows Hall $100/M-F daytime/no food $50-75 $50
543-8302/Les $200 on Saturdays
Fees are approximate and dependent upon many variables (if food is
served or if evening hours required rates could be higher)
Kitchen facilities available only if dining room is used (rental rate to
be determined).
Security deposit equal to base rental rate
Grange Hall (343) (257)* dining room -----
543-3279/Duane $150 $150
Smaller groups can use portions of the building, but they are usually
on-going groups and are given special rates (to be determined)
Groups of non-profit status pay half of the rental rate
* Dining room is the only group that has access to the kitchen and
the rental rate of $150 includes its use
Security deposit not required
Elks Lodge $250 $75 $75
543-0322/Bill Restaurant must provide food/food cannot be catered by outside
Security deposit not required
NOTE: Above rental rates are based upon all day reservation of facility and
theatre style set-up..
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DATE'N AGENDA
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Eva J. Vigil
1890 Castillo Court
San Luis Obispo, CA 93405 YI
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Mayor Ron Dunin
990 Palm St.
San Luis Obispo, CA 93401
Re: Fee for the use of the library community rooms
Dear Mayor Dunin:
I urge you to continue to make the community rooms at the library available to
non-profit groups free of charge. Non-profit organizations in San Luis Obispo
provide numerous beneficial services to this community, which our local
government would not provide otherwise. To saddle these organization with yet
another cost directly limits that organization's ability to provide its services.
Providing these meeting rooms free of charge to these groups is a small price to pay
for the contributions the City receives in return. I, for one, am happy to pay taxes to
support these efforts.
Thank you for your consideration.
v '
Eva J. U it
Copies to:
Penny Rappa
Bill Roalman
Peg Pinard
Jerry Reiss R E G F a V F
SEP 1 S 1992
CITY CLERK
SAN LUIS OBISPO,CA
09/15/92 15:58 8055499627 AMERICAN HEART ASSOCIATION SA PAGE 02
San Luis Obispo Dtvlsion-_o.Box 1071 •San Luis Obispo.CA 93405
1371 Pacific Straet•San Luis Obispo.CA 93401 -805/54-1505
*AsAsociation
merican Heart Oedicared to the reduction of
d'satiury and death hom
cardiovascular diseases and smAe.
California Affiliate
MEETING AGENDA
DATE NREM#�cta
September 15, 1992
Mr. John Dunn
City Administrative Officer VO 10ds180 s1m1 rtes
City of San Luis Obispo '113Nnoo Alto
990 Palm Street Z661 S I d3S
P.O. Box 8100
San Luis Obispo, CA 93403-8100 a3AI7303�-]
Dear Mr. Dunn,
We have recently been notified that there will be a public
hearing tonight during the City Council meeting concerning the
establishment of fees for the use of the City-County Library
Community Room and Conference Room.
As the new Executive Director of the American Heart Association,
I am currently making plans to establish a Speakers Bureau for
San Luis Obispo County. The speakers would convey information on
health, nutrition, and exercise to the general community. The
Community Room at the library would be an ideal place to hold
these informational presentations.
As a non-profit organization, our limited budget makes it
impossible to rationalize paying a fee for a room. We would be
forced to look for a facility that would donate a room for this
educational purpose.
While charging "for-profit" businesses may be unavoidable due to
budget constraints, I hope that charging non-profit
organizations for the use of the rooms will be re-considered.
ASincerely,
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P.O. Box 8100 �I
San Luis Obispo, CA 93403-8100
Re: Proposed fees for the use of library conference facilities
Dear Council Members:
I certainly understand the dilemma cities are faced with in generating
revenue to support services, however, there are many organizations
providing services at no charge to the community who have been able to
take advantage of the wonderful facilities at the library. For example,
several people (myself included) formed an educational group called
Widowed Persons' Outreach several years go. We provide a five-hour
seminar (including lunch) for widowed people to educate them financially
and emotionally. We charge $6 per person which in no way nearly covers
the expenses incurred to provide this service to the city and county of
San Luis Obispo. The new fees you propose to charge for use of the
library facilities (since we are not technically a 501 C3 group) would
nearly double our out-of-pocket expenses, making these seminars very
expensive to provide as a service to the community. I am sure there are
many other groups who may find your increased fees putting them in the
same dilemma. Since the nature of the meetings being held in these
rooms is to be "in the community's interest", perhaps your fees will
become self-defeating whereby the community will have fewer programs in
which to participate. I urge you to strongly consider the status quo
for the benefit of the community or reducing your proposed fee schedule
so that you are more than competitive with other outfits in the
community who offer additional services such as food catering, etc.
After all, you really don't offer the same services as commercial
organizations.
Your consideration is appreciated. Please let me know if you have
questions or would like additional comments.
Sincer ,
David W. Cry en CFP SEP 1 c 1992
Vice President
CITY CLERK
DWC:lkb SAN LUIS OBISPO.CA
cc: John Dunn, City Administrative Officer
\1, K,NASD PASO ROBLES SAN LUIS OBISPO SANTA MARIA nt„a•,,xir
prETING AGENDA
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San Luis Obispo Chamber of Commerce 9 1092
1039 Chorro Street • San Luis Obispo, California 93401-3278
(805) 781-2777 • FAX (805) 543-1255
David E. Garth, Executive Director SAN LUlS ogi_oD OA
September 9. 1992
Mr. John Dunn
City Administrative Officer
City of San Luis Obispo
990 Palm Street
P.O. Box 8100
San Luis Obispo, CA 93403-8100
Dear John:
This is in response to the recent notification of proposed
charges for use of the City-County Library Community Room and
Conference Room.
Allow me to express my extreme dismay at the prospect of charging
San Luis Obispo's non-profit agencies for use of this facility.
A "Community" Room should exist to serve the interests of the
local community -- something these agencies do day after day.
Placing a fee on use of the room will likely cause some of the
non-profit agencies to reduce, or cease, their use of the room,
with the community losing in the end. Charges for "all other
users" would seem to make more sense, as a great many of these
entities are in the for-profit business.
While I recognize the budget constraints facing the City at this
time are great, I believe a fee schedule of this magnitude, as
it pertains to non-profit agencies, is unwarranted.
Sincerely,
�.iPIESTO:
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ACCREDITED
CMAMoce OF COMMERCE
C+AMBER OF COMMERCE
Of 7"E UNITID STAIES
MEETAGENDA
DCISC DTE ' ITEM I_jegt.
DIABLO CANYON
INDEPENDENT SAFETY COMMITTEE
September 4, 1992
857 Cass Street
Suite D
Monterey.CA 93940
800/439-4688
408/647-1044 City Council Members
COMMITTEE
City of San Luis Obispo C.
MEMBERS -990- Palm -street
William E. Kastenberg Post Office BOX 8100 SAN LUIS 031E.?O,CA
Warren H. Owen San Luis Obispo, California 93403-8100
Herbert H.Woodson
Attention: John Dunn, City
COUNSEL Administrative Officer
Robert R. Wellington
Re: Establishing Fee Schedule for
Rooms at City-County Library
Dear Council Members:
Mr. Dunn has recently sent to the Diablo Canyon Inde-
pendent Safety Committee ("DCISC") , as occasional users over
the last two years of the Community Room at the City-County
Library, a memo relative to the proposed establishment of fees
for use of the library facilities.
With full awareness of the precarious financial situation
that California cities find themselves in these days, with the
great assistance of our legislators in Sacramento, the DCISC
is of the opinion that the fee schedule proposed is appropri-
ate, fair and long overdue. We have paid comparable or higher
fees for the use of similar facilities at the Grange Hall in
San Luis Obispu a!-id 'Che South Of6casL n24ivltdi Center iri Arroyo
Grande.
Best wishes on your deliberations and decision.
Very truly yours, jVc
n
Roert R. Wellington CO TO;
DCISC Legal Counsel ❑• .amFYI
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MEETING AGENDA
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SAN LUIS OBISPO MOZART FESTIVAL
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August 27, 1992
SA.V cylvL .ki
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Mr. John Dunn
City Administrative Officer
City of San Luis Obispo
990 Palm Street
P.O. Box 8100
San Luis Obispo, CA 93403-8100
Dear John,
I received your recent memorandum regarding fees for
the City-County Library Community Room and Conference
Room. Unfortunately, I will be unable to attend this
meeting, but I want to express my thoughts regarding
this matter. Though I know it is painful to face the
need to access such a fee, I do believe, because of the
financial situation our City is facing, it has become
necessary to establish such a fee. The fee structure
seems equitable, therefore, I support the proposal .
I appreciated your.brief update on the City'sfinancial
picture at the SLO Chamber of Commerce Breakfast.
Though this is a difficult time for all of us, I am
convinced through good management we will make it
through this difficult period. Thank you for the role
you are playing in helping us face these hard times.
Sincerely,
<artin
Executive Director
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POST OFFICE BOX 311 SAN' LMS OBISPO CALIFORNIA 93406 805.543.4580