City of Culver City, California
Agenda Item Report
Meeting Date: 12/10/12 Item Number: A-5
CITY COUNCIL AGENDA ITEM: Consideration of Adoption of a City Council Policy
Regarding Providing Fee Reductions/Subsidies to Long-Term Regular Veterans’
Memorial Complex Users.
Contact Person/Dept.: Dan Hernandez,
PRCS Director
Phone Number: 310-253-6655
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Meetings and Agendas – City Council (12/07/12); (E-Mail /
Telephone) Long-Term Regular Users – Veterans’ Memorial Building (11/09/12).
Department Approval:
Dan Hernandez (11/21/12)
City Attorney Approval:
Carol Schwab (by H. Baker) (12/06/12)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (12/05/12)
City Manager Approval:
John M. Nachbar (12/07/12)
RECOMMENDATION:
Staff recommends that the City Council consider adopting a City Council Policy
providing fee reductions/subsidies to long-term regular Veterans’ Memorial Building
users.
BACKGROUND:
Since 2011, staff has been working with various user groups of City facilities
managed by the Parks, Recreation and Community Services Department to
implement the fees and charges adopted by the City Council in 2009. The PRCS
Department oversees rental of the Veterans’ Memorial Complex, which includes the
Veterans’ Memorial Building, the Teen Center, the Plunge and the Senior Center.
There are approximately fifty-nine (59) users that regularly schedule events and/or
meetings in the Veterans’ Memorial Building (VMB). Currently, the majority of these
regular users, including religious organizations, pay the appropriate fees and
charges based on their fee category as adopted by the City Council for Fiscal Year
2012/2013 (Attachment). The only exceptions to this standard operating procedure
are four groups that have a history of being subsidized by the City in past years: the
La Ballona Valley Bromeliad Society, the Culver City Rock and Mineral Club, the Los
Angeles School of Gymnastics and the Culver City Symphony Orchestra.
Previously, the Culver City Garden Club was included in this group; however, as of
January 2012 the group relocated to other facilities.
City of Culver City, California
Agenda Item Report
DISCUSSION:
Past Practices Regarding Fee Subsidies
While staff has been largely successful in implementing the City Council adopted fee
schedule, certain regular users with a history of receiving significantly discounted
rental rates have expressed an interest in continuing to receive the existing rate.
Each of the four groups in question has been using the VMB in excess of ten
consecutive years. However, it is difficult to determine what, if any, objective criteria
were applied when those historical rental rates were offered. For example, some
groups get an overall rental discount that includes equipment and other extras, while
another group gets a discounted rental fee for the space (in this case the
Auditorium) and separate discounts for specific equipment and extras. Also, the use
of the VMB varies, as below:
SUBSIDIZED
GROUP
FEE
CATEGORY
MONTHLY
MEETINGS
ANNUAL
EVENTS
TYPE OF
EVENT(S)
FEE TO ATTEND
EVENT(S)
La Ballona
Valley
Bromeliad
Society
C Yes One
Trade Show
& Sale
No
Culver City
Rock and
Mineral Club
B Yes One
Trade Show
& Sale
No
Los Angeles
School of
Gymnastics
B No One Exhibition Yes
Culver City
Symphony
Orchestra
C No
Three to
Four
Concerts
Yes; but at least 1
free performance
per season.
For reference, the detailed description of the fee categories above (as contained in
the City Council adopted fee schedule) is as follows:
Category B: “Non-Profit, Resident,” any 501(c) Non-Profit Organization that is
headquartered in the City of Culver City. Groups shall submit a
copy of their most current IRS Form 990 (cannot be older than 2
years) to be placed on file with the PRCS Department as well as
their General Liability Insurance with corresponding Culver City
headquarters address.
Category C: “Non-Profit, Non-Resident,” any 501(c) Non-Profit Organization that
is not headquartered in the City of Culver City. Groups shall submit a
copy of their most current IRS Form 990 (Cannot be older than 2 City of Culver City, California
Agenda Item Report
years) to be placed on file with the PRCS Department as well as their
General Liability Insurance with corresponding headquarters address.
Establishing a Fee Subsidy Policy
When establishing fees for the recreational services provided by the Parks,
Recreation, and Community Services Department, in the past, the City Council has
determined to not implement full cost recovery. In other words, recreation classes
and use of City facilities are offered to the public at a rate less than that needed for
the City to recover its costs in providing those services. By applying objective
criteria, the City Council has determined that groups that meet such criteria are
eligible for a further fee reduction (“resident” non-profit groups and “non-resident”
non-profit groups).
When considering what groups, if any, might warrant additional fee subsidies from
those already provided in the existing fee schedule for non-profit organizations, it
seems that a membership comprised primarily of Culver City residents might be a
factor; however, only one of the groups listed above, the Culver City Rock and
Mineral Club, meets this standard.
Staff recommends that, if the City Council wishes to continue to subsidize the VMC
rental fees for long-term regular users, the City Council adopt a policy establishing
consistent and objective criteria in implementing such subsidies.
For example, below are two possible options which the City Council may wish to
consider in developing a policy for long-term regular VMC users. The provisions of
the basic fee categories listed above, including current, accurate IRS
documentation, with verification of Culver City address for Non-Profits
headquartered in Culver City, and proof of General Liability insurance for all groups
are required documentation and serve as the baseline upon which discounts could
be applied. In addition, staff recommends that for all groups, incidental expenses for
equipment and extras are charged as specified in the Adopted Fees and Charges
Schedule and that discounts are applied to the room/space rental fee only.
Option 1
One option would be to apply discounts to the baseline fee category based on
meeting certain criteria, with each criterion representing a percentage of an overall
possible discount. Criteria for discounted fees could include:
1. An established record of being a regular user of the Veterans’ Memorial
Complex for a period of ten consecutive years or more.
2. No admission charge to participants for all open-to-the-public events.
3. Accurate documentation demonstrating that a non-profit has generated less
than $25,000 annually over the past three years. City of Culver City, California
Agenda Item Report
4. Current documentation verifying that membership of the group is equal to or
greater than 51% Culver City residents.
5. An established record of contributing to the Culver City community above
and beyond the group’s regular events and meetings (for example, by
offering free classes or demonstrations, working with Culver City Unified
School District students, hosting additional special events that educate,
inform or entertain the public).
As an example, if the City Council determined that each criterion above merited a
10% discount, groups meeting all the above criteria would receive a 50% subsidy
for VMC room/space rental only.
Option 2
A second option would be to set a fixed dollar amount discount for long-term regular
VMC users. For example, perhaps Non-Profit, Resident groups could be given a
credit by the City for the first $2,000 toward room/space rental and Non-Profit, Non-
Resident groups could be given a $1,000 annual credit.
As an alternative to continuing the subsidy, one way to soften the impact to the four
groups is to adopt a fee increase phase-in period. For example, the City Council
could determine to adopt a phase in period of 5 years with any increase from the
currently paid fee to the full City Council adopted fee. The differential would
increase 20% each year until the group reaches 100% of the applicable fee in 2017.
FISCAL ANALYSIS:
Should the City Council decide to adopt a rental fee reduction/subsidy policy for
long-term regular Veterans’ Memorial Complex users, the fiscal impact will depend
upon the exact nature of the policy and the ways in which the new policy impacts
specific users. In the past, fees charged to the groups mentioned above were
implemented in a very inconsistent manner with rental fee subsidies ranging from
40% to 100%, regardless of Non-Profit fee category. If Option 1 is adopted as
presented, discounts would not exceed 50% of the appropriate rental rate. If Option
2 is adopted as presented, the fixed-rate discount will provide a greater benefit in
terms of percentage discount to those who incur less charges overall during the
course of the year. In either case, there are sure to be savings in staff time and
expense spent addressing questions and concerns that have arisen over the years
due to the lack of a clear, consistent rental fee reduction/subsidy policy for long-term
regular Veterans’ Memorial Complex users. In addition, any policy adopted can be
used to address fee issues and subsidies related to rentals of other City facilities
including parks and field areas for new or expanded uses by various organizations.
City of Culver City, California
Agenda Item Report
Should the City Council decide not to adopt any changes to the rental fee structure,
staff will continue to work with current users to bring their fees and charges into line
with those set forth in the City’s Adopted Fees and Charges Schedule, with the
objective of phasing out all existing fee subsidies over the course of the next two
fiscal years.
ATTACHMENT:
1. Fiscal Year 2012/2013 Fees and Charges Schedule for the Veterans’
Memorial Complex.
MOTIONS:
That the City Council:
1) Adopt Option 1, or some variation thereof, as the City Council Policy
Regarding Providing Fee Reductions/Subsidies to Long-Term Regular
Veterans’ Memorial Complex Users;
OR
2) Adopt Option 2, or some variation thereof, as the City Council Policy
Regarding Providing Fee Reductions/Subsidies to Long-Term Regular
Veterans’ Memorial Complex Users;
OR
3) Specify an Alternate Option as the City Council Policy Regarding Providing
Fee Reductions/Subsidies to Long-Term Regular Veterans’ Memorial
Complex Users;
OR
4) Provide staff with alternate direction.
MEETING DATE: December 10, 2012
AGENDA ITEM: Consideration of Adoption of a City Council Policy
Regarding Providing Fee Reductions/Subsidies to Long-
Term Regular Veterans’ Memorial Complex Users.
ATTACHMENT
Pages
Fiscal Year 2012/13 Fees and Charges Schedule for the
Veterans ’ Memorial Complex.
1 - 8
EXHIBIT F-2
City of Culver City
Veterans Memorial Complex
FISCAL YEAR 2012-13
Category A:
Category B:
Category C:
Category D:
Category E:
Category F:
Category G:
“Commercial, Resident,” shall mean any business headquartered in the City of Culver
City or any person or group that does not qualify under categories A-E whether for
monetary gain or not. To qualify as a "Commercial, Resident”, renter shall submit a copy
of their valid Culver City business license. Any person or group in this category shall
prove residency using any method found in category “B” or D”. Anyone person, group or
business in this category shall submit their General Liability Insurance with
corresponding Culver City address.
“Commercial, Non-Resident,” shall mean any business not headquartered in the City
of Culver City or any person or group that does not qualify under categories A-E whether
for monetary gain or not and is not a resident of the City of Culver City. Anyone person,
group or business in this category shall submit their General Liability Insurance.
“City Sponsored,” shall mean any person or group that is granted the use of any part of
a City facility for any purpose for no fee or for a small stipend as determined by the City
Council.
“Non Profit, Resident,” shall mean any 501(c)(3) Non-Profit Organization that is
headquartered in the City of Culver City. Culver City 501(c)(3) Non-Profit Organization,
annually, shall submit a copy of their most current IRS Form 990 (Cannot be older than 2
years) to be placed on file with the PRCS Department as well as their General Liability
Insurance with corresponding Culver City headquarters address.
“Non Profit, Non-Resident” shall mean any 501(c)(3) Non-Profit Organization that is not
headquartered in the City of Culver City.Non-Resident 501(c)(3) Non-Profit Organization,
annually, shall submit a copy of their most current IRS Form 990 (Cannot be older than 2
years) to be placed on file with the PRCS Department as well as their General Liability
Insurance with corresponding headquarters address.
“Private Party, Resident” shall mean any City of Culver City resident holding a private
gathering. To qualify as a resident, renter shall submit a copy of their most current utility
bill (No older than 2 months) and provide a secondary proof of residency with a photo id.
Private Parties are events organized by invitation only, and no admission is charged, no
public marketing has occurred, no business or services are being provided.
“Private Party, Non-Resident” shall mean anyone residing outside of the City of Culver
City holding a private event. Private Parties are events organized by invitation only, and
no admission is charged, no public marketing has occurred, no business or services are
being provided.
These fees shall be assessed in conjuction with the regulations set forth in Resolution No. 2003-R020:
Page 1
ATTACHMENTEXHIBIT F-2
City of Culver City
Veterans Memorial Complex
FISCAL YEAR 2012-13
Service Name
FY 2012-13 Fee
HOURLY RENTAL FEES
VETERAN'S MEMORIAL BUILDING
Auditorium
Category B - Non-Profit, Resident 165.00 $
Category C - Non-Profit, Non-Resident 229.00 $
Category D - Private Party, Resident 236.00 $
Category E - Private Party, Non-Resident 263.00 $
Category F - Commercial, Resident 296.10 $
Category G - Commercial, Non-Resident 329.00 $
Rotunda
Category B - Non-Profit, Resident 33.00 $
Category C - Non-Profit, Non-Resident 48.00 $
Category D - Private Party, Resident 76.00 $
Category E - Private Party, Non-Resident 84.00 $
Category F - Commercial, Resident 109.80 $
Category G - Commercial, Non-Resident 122.00 $
Box Office
Category B - Non-Profit, Resident 50.00 $
Category C - Non-Profit, Non-Resident 50.00 $
Category D - Private Party, Resident 50.00 $
Category E - Private Party, Non-Resident 50.00 $
Category F - Commercial, Resident 100.00 $
Category G - Commercial, Non-Resident 100.00 $
Lobby
Category B - Non-Profit, Resident 50.00 $
Category C - Non-Profit, Non-Resident 50.00 $
Category D - Private Party, Resident 50.00 $
Category E - Private Party, Non-Resident 50.00 $
Category F - Commercial, Resident 100.00 $
Category G - Commercial, Non-Resident 100.00 $
Garden
Category B - Non-Profit, Resident 23.00 $
Category C - Non-Profit, Non-Resident 33.00 $
Category D - Private Party, Resident 62.00 $
Category E - Private Party, Non-Resident 68.00 $
Category F - Commercial, Resident 96.30 $
Category G - Commercial, Non-Resident 107.00 $
Page 2EXHIBIT F-2
City of Culver City
Veterans Memorial Complex
FISCAL YEAR 2012-13
Service Name
FY 2012-13 Fee
Multipurpose
Category B - Non-Profit, Resident 25.00 $
Category C - Non-Profit, Non-Resident 35.00 $
Category D - Private Party, Resident 51.84 $
Category E - Private Party, Non-Resident 57.60 $
Category F - Commercial, Resident 64.80 $
Category G - Commercial, Non-Resident 72.00 $
Kaizuka
Category B - Non-Profit, Resident 10.00 $
Category C - Non-Profit, Non-Resident 15.00 $
Category D - Private Party, Resident 30.00 $
Category E - Private Party, Non-Resident 33.00 $
Category F - Commercial, Resident 45.00 $
Category G - Commercial, Non-Resident 50.00 $
Uruapan
Category B - Non-Profit, Resident 10.00 $
Category C - Non-Profit, Non-Resident 15.00 $
Category D - Private Party, Resident 30.00 $
Category E - Private Party, Non-Resident 33.00 $
Category F - Commercial, Resident 45.00 $
Category G - Commercial, Non-Resident 50.00 $
Yanji
Category B - Non-Profit, Resident 9.00 $
Category C - Non-Profit, Non-Resident 13.00 $
Category D - Private Party, Resident 16.00 $
Category E - Private Party, Non-Resident 19.00 $
Category F - Commercial, Resident 22.00 $
Category G - Commercial, Non-Resident 24.00 $
Iksan
Category B - Non-Profit, Resident 11.00 $
Category C - Non-Profit, Non-Resident 16.00 $
Category D - Private Party, Resident 23.00 $
Category E - Private Party, Non-Resident 26.00 $
Category F - Commercial, Resident 30.00 $
Category G - Commercial, Non-Resident 33.00 $
Room A
Category B - Non-Profit, Resident 8.00 $
Category C - Non-Profit, Non-Resident 12.00 $
Category D - Private Party, Resident 12.75 $
Category E - Private Party, Non-Resident 14.25 $
Category F - Commercial, Resident 19.25 $
Category G - Commercial, Non-Resident 21.50 $
Page 3EXHIBIT F-2
City of Culver City
Veterans Memorial Complex
FISCAL YEAR 2012-13
Service Name
FY 2012-13 Fee
Room B
Category B - Non-Profit, Resident 8.00 $
Category C - Non-Profit, Non-Resident 12.00 $
Category D - Private Party, Resident 12.75 $
Category E - Private Party, Non-Resident 14.25 $
Category F - Commercial, Resident 19.25 $
Category G - Commercial, Non-Resident 21.50 $
Room C
Category B - Non-Profit, Resident 8.00 $
Category C - Non-Profit, Non-Resident 12.00 $
Category D - Private Party, Resident 12.75 $
Category E - Private Party, Non-Resident 14.25 $
Category F - Commercial, Resident 19.25 $
Category G - Commercial, Non-Resident 21.50 $
Classroom 2 (VETS Craft Room)
Category B - Non-Profit, Resident 9.00 $
Category C - Non-Profit, Non-Resident 13.00 $
Category D - Private Party, Resident 16.00 $
Category E - Private Party, Non-Resident 19.00 $
Category F - Commercial, Resident 22.00 $
Category G - Commercial, Non-Resident 24.00 $
Classroom 3 (ESL Room)
Category B - Non-Profit, Resident 11.00 $
Category C - Non-Profit, Non-Resident 16.00 $
Category D - Private Party, Resident 23.00 $
Category E - Private Party, Non-Resident 26.00 $
Category F - Commercial, Resident 30.00 $
Category G - Commercial, Non-Resident 33.00 $
Teen Center
Category B - Non-Profit, Resident 54.00 $
Category C - Non-Profit, Non-Resident 77.00 $
Category D - Private Party, Resident 93.00 $
Category E - Private Party, Non-Resident 103.00 $
Category F - Commercial, Resident 116.00 $
Category G - Commercial, Non-Resident 129.00 $
Classroom 1
Category B - Non-Profit, Resident 10.00 $
Category C - Non-Profit, Non-Resident 14.00 $
Category D - Private Party, Resident 23.00 $
Category E - Private Party, Non-Resident 25.00 $
Category F - Commercial, Resident 39.00 $
Category G - Commercial, Non-Resident 43.00 $
Page 4EXHIBIT F-2
City of Culver City
Veterans Memorial Complex
FISCAL YEAR 2012-13
Service Name
FY 2012-13 Fee
SENIOR CENTER (per hour rental rates)
Dining Room
Category B - Non-Profit, Resident 77.40 $
Category C - Non-Profit, Non-Resident 86.00 $
Category D - Private Party, Resident 109.00 $
Category E - Private Party, Non-Resident 121.00 $
Category F - Commercial, Resident 129.00 $
Category G - Commercial, Non-Resident 143.00 $
B45
Category B - Non-Profit, Resident 62.00 $
Category C - Non-Profit, Non-Resident 68.00 $
Category D - Private Party, Resident 82.00 $
Category E - Private Party, Non-Resident 91.00 $
Category F - Commercial, Resident 103.00 $
Category G - Commercial, Non-Resident 114.00 $
B47
Category B - Non-Profit, Resident 62.00 $
Category C - Non-Profit, Non-Resident 68.00 $
Category D - Private Party, Resident 82.00 $
Category E - Private Party, Non-Resident 91.00 $
Category F - Commercial, Resident 103.00 $
Category G - Commercial, Non-Resident 114.00 $
C71
Category B - Non-Profit, Resident 16.00 $
Category C - Non-Profit, Non-Resident 17.00 $
Category D - Private Party, Resident 21.00 $
Category E - Private Party, Non-Resident 23.00 $
Category F - Commercial, Resident 26.00 $
Category G - Commercial, Non-Resident 29.00 $
C73
Category B - Non-Profit, Resident 17.00 $
Category C - Non-Profit, Non-Resident 22.00 $
Category D - Private Party, Resident 28.00 $
Category E - Private Party, Non-Resident 31.00 $
Category F - Commercial, Resident 55.00 $
Category G - Commercial, Non-Resident 61.00 $
Page 5EXHIBIT F-2
City of Culver City
Veterans Memorial Complex
FISCAL YEAR 2012-13
Service Name
FY 2012-13 Fee
C75
Category B - Non-Profit, Resident 17.00 $
Category C - Non-Profit, Non-Resident 22.00 $
Category D - Private Party, Resident 28.00 $
Category E - Private Party, Non-Resident 31.00 $
Category F - Commercial, Resident 55.00 $
Category G - Commercial, Non-Resident 61.00 $
C77
Category B - Non-Profit, Resident 16.00 $
Category C - Non-Profit, Non-Resident 17.00 $
Category D - Private Party, Resident 21.00 $
Category E - Private Party, Non-Resident 23.00 $
Category F - Commercial, Resident 26.00 $
Category G - Commercial, Non-Resident 29.00 $
Confernce Room
Category B - Non-Profit, Resident 8.00 $
Category C - Non-Profit, Non-Resident 12.00 $
Category D - Private Party, Resident 12.75 $
Category E - Private Party, Non-Resident 14.25 $
Category F - Commercial, Resident 19.25 $
Category G - Commercial, Non-Resident 21.50 $
Craft Room
Category B - Non-Profit, Resident 10.00 $
Category C - Non-Profit, Non-Resident 14.00 $
Category D - Private Party, Resident 23.00 $
Category E - Private Party, Non-Resident 25.00 $
Category F - Commercial, Resident 39.00 $
Category G - Commercial, Non-Resident 43.00 $
MISCELLANOUS RENTAL FEES (all equipment rental fees are a per event flat fee)
City Staff (per hour) 25.00 $
Security Guard (per hour) 20.00 $
Audio/Visual Equipment
(if not identified separately in this fee schedule)
25.00 $
Auditorium Extras
(if not identified separately in this fee schedule)
85.00 $
Additional Equipment
(if not identified separately in this fee schedule)
12.00 $
Page 6EXHIBIT F-2
City of Culver City
Veterans Memorial Complex
FISCAL YEAR 2012-13
Service Name
FY 2012-13 Fee
Grand Piano
All Non-Profit/Private 55.00 $
All Commercial 110.00 $
Baby Grand
All Non-Profit/Private 55.00 $
All Commerical 75.00 $
Upright Piano
All Non-Profit/Private 16.50 $
All Commerical 33.00 $
Sound System (per hour)
All Non-Profit/Private 30.00 $
All Commerical 60.00 $
Event Staff (per hour)
All Non-Profit/Private Actual Cost + 25%
All Commerical Actual Cost + 50%
Setup Fee (per event)
All Non-Profit/Private 26.00 $
All Commerical 31.00 $
Auditorium Kitchen (per event)
All Non-Profit/Private 100.00 $
All Commerical 150.00 $
Host Food Fees
All Non-Profit/Private $10 to $100 - All Categories
All Commerical $10 to $100 - All Categories
Refundable Damage Deposits
All Non-Profit/Private $50 to $500 - All Categories
All Commerical $50 to $500 - All Categories
ADDITIONAL FEES DURING A FACILITY RENTAL (the following are flat rental rates)
Teen Center Kitchen
All Non-Profit/Private 100.00 $
All Commerical 150.00 $
Lobby Concession Stand
All Non-Profit/Private 50.00 $
All Commerical 100.00 $
Page 7EXHIBIT F-2
City of Culver City
Veterans Memorial Complex
FISCAL YEAR 2012-13
Service Name
FY 2012-13 Fee
Auditorium Kitchen with Bar
All Non-Profit/Private 100.00 $
All Commerical 150.00 $
Reserved Parking (per space)
All Non-Profit/Private 15.00 $
All Commerical 20.00 $
Cancellation Fee (with 60 days notice)
All Non-Profit/Private 25.00 $
All Commerical 100.00 $
Cancellation Fee (with 30 days notice)
All Non-Profit/Private 50.00 $
All Commerical 150.00 $
Cancellation Fee (less than 30 days notice)
All Non-Profit/Private 100% of Room Rental Fee
All Commerical 100% of Room Rental Fee
Page 8