SUBJECT:     RATE RESOLUTION FOR THE CONVENTION & CULTURAL FACILITIES

 

COUNCIL DISTRICT:  City-wide

 

 

RECOMMENDATION

 

Adoption of a resolution setting forth the rate schedule for the Convention Center and other related facilities and repealing Resolution No. 69792.

 

BACKGROUND

 

The Department reviews its facility use rates and conducts market surveys on an annual basis.  Resolution No. 69792, adopted by Council on June 27, 2000, was the last revision to the facility use fees and optional equipment and services rates for the Convention Center, Civic Auditorium, Parkside Hall, Center for the Performing Arts, and Montgomery Theater.

 

ANALYSIS

 

Electrical Services and Charges

 

Council adopted current optional equipment and services rates on June 27, 2000.  The Department has proposed providing electrical services, which are currently being provided by third party contractors, as exclusive in-house services.  Clients and exhibitors will be advised of these exclusive in-house services and will be contacted in advance to determine their needs and initiate service work order forms.  Staffing schedules and equipment needs will be determined in advance based on requests for service and historical data.  The Department has conducted a market analysis of electrical service rates and recommends establishing competitive rates for in-house delivery of electrical services to clients and exhibitors.

 

Montgomery Theater Rental Rates

 

Council adopted current facility use rates for the Center for the Performing Arts and Montgomery Theater on June 29, 1999, and approved Montgomery Theater lighting rates on June 27, 2000.  The current rate for use of the Montgomery Theater from 8 am to 12 midnight is $500. 

The Department has had several opportunities to rent the Montgomery Theater for half-day sessions and recommends establishing a rate of $400 for 8 am to 4 pm or 4 pm to

midnight.  In an effort to support the San José arts groups that use the Center for the Performing Arts and Montgomery Theater, the Department recommends no further changes in facility use fees for Fiscal Year 2001-02.

 

Repealing Resolution No. 69792

 

It is advantageous to have all applicable rates for the Convention & Cultural Facilities in one rate resolution.  The Department recommends that the new resolution supersede Resolution No. 69792, so that all currently applicable rates for all facilities will be set forth in one resolution.

 

PUBLIC OUTREACH

 

These rates have been discussed with the San José Convention and Visitors Bureau who constantly survey clients to ensure Convention Facilities remain competitive. 

 

COORDINATION

 

This item has been coordinated with the City Manager’s Budget Office and the City Attorney’s Office.

 

COST IMPLICATIONS

 

The proposed facility use fees have been used in the Convention and Cultural Facilities Fund revenue projections and, as such, are included in the City’s 5-year budget forecast.

 

BUDGET REFERENCE

 

                         Fund:               Convention and Cultural Affairs Fund (536)

     Budget Document:               2001-2002 Proposed Operating Budget, page 745

                   Program:               Facilities Maintenance & Operations

           Core Services:               Convention Facilities and Arts and Cultural Development

 

 

NANCY JOHNSON

Director, Conventions, Arts & Entertainment Department