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POR T <br />To the Honorable Mayor and City <br />From the City I <br />February 24, 2003 <br />Subject <br />New Building Rental Rates and New Resolution <br />Recommendation <br />Staff recommends that the City Council rescind Resolutions 11294 and 11295 and adopt the new <br />resolution; and approve the new building rental rates that are detailed in Attachment I of this report. <br />Background <br />The Parks, Recreation and Community Services (PRCS) Department last recommended and <br />received approval for new building rental fees in 1990. Expecting that we would be out of line <br />with the market, we conducted a rental fee comparison with the cities of Palo Alto, Daly City, <br />Foster City and San Mateo. This survey indicated that our private use rates were up to 50% less <br />than charges in these other cities. A comparison of these rates is included in Attachment II of <br />this report. Under this proposal our rates for private groups would double, and bring us in line <br />with rates charged in other cities. At the same time an internal review of our building policies <br />was undertaken. We found that there were inconsistencies between buildings so that facility <br />users were dealing with a building vs. a Department policy. A Department taskforce was put <br />together to develop the proposed rates, rules and regulations. The Parks and Recreation <br />Commission approved the recommendations on January 22, 2003. <br />A major change in rate policy is with non - profit groups. We are recommending that there be no <br />rental fees for non - profit groups for use of our buildings during the week, but weekend use would <br />constitute a private resident rental rate (usually for large dinners, galas or other similar events <br />that require more staff time and custodial clean -up). Non - profit groups who wish to have their <br />fees waived on weekends will have the opportunity to do so by requesting this in writing to the <br />Director of Parks, Recreation and Community Services. We are also recommending free use to <br />public agencies because this allows us to continue our free use of their facilities. In order to <br />properly amend rental rates on a consistent basis, staff will be conducting fee comparisons with <br />other cities every two years to coincide with the Citys two -year budget cycle. <br />Alternative <br />Not to approve or modify the building rental rates and /or regulations. <br />Fiscal Impact <br />The PRCS Department is expected to bring in $116,000 in building rental fees with the current rate <br />system by the end of this fiscal year. If Council approves the new rates, we estimate that annually <br />an additional $75,000 will be brought in from private /group renters. <br />Q <br />Christopher Beth Corinne Centeno ° d Everett <br />PRCS Superintendent PRCS Director City Manager <br />Attachment 1: New Building Rental Rates <br />Attachment 2: Comparison of other City Building Renial Costs <br />