May 25, 2004

SUBJECT: Request for Free Use of Community Center Ballroom by Ms. Linda McIntyre

REPORT IN BRIEF

Staff has reviewed the request from Ms. Linda McIntyre for free use of the Community Center Ballroom and finds it inconsistent with Council's policy regarding "Relationships with Outside Groups".

BACKGROUND

On January 1, 2004, Ms. McIntyre made a reservation for use of the Community Center ballroom for a dance from 4 p.m. to 10 p.m. on June 13, 2004. Ms. McIntyre paid the required fee of $1700 ($1200 for use of the ballroom and a $500 security deposit).

On May 18, 2004, Ms. Linda McIntyre made a presentation to City Council requesting Council waive the $1200 fee for use of the Community Center Ballroom, indicating that the intended use was for a fund-raising dance with music provided by youth bands associated with Columbia Middle School. Mayor Howe requested that staff consider the citizen's request and report back to Council.

EXISTING POLICY

Sunnyvale Legislative Policy 7.2.6 – Relationships with Outside Groups

It is Council's policy "to afford use of specific City facilities--during such times the City does not itself have use for said facilities--to outside groups and/or independent organizations. Outside groups and/or independent organizations using City facilities shall do so consistent with City policies on facility use and shall pay all required fees in accordance with established fee schedules."

Policy C.3. – Utilize available pricing and promotional tools in order to maximize participation and/or use related programs, facilities and services, without jeopardizing the integrity and infrastructure of related facilities.

6.1C.3a Utilize market-based pricing in the establishment of fees, and continually evaluate the effectiveness of pricing strategies.

6.1C.3b Structure the pricing and enrollment system for class registration and facility reservation to give City residents advantage over non-residents, where feasible and appropriate.

DISCUSSION

A consistent approach to this type of request is critical. Staff receives countless requests for free use of City facilities each year – some for extended uses, others for one-time use. Many of these requests are from non-profit agencies serving the community. Examples include recent requests from Ms. Bobbe Smirni on behalf of the American Cancer Society for use of the Library, and the Sunnyvale Historical Society and Museum Association hoping to use the Community Center Ballroom for a fund raising event all day on a Saturday. In accordance with Council policy, neither of these requests were honored.

Only City Council can authorize the use of a City facility under terms other than those established by existing fees and charges. When doing so, however, Council should be mindful of setting precedents. Numerous non-profit organizations use the City's facilities each year, and pay the required fees. To waive the fees for one group but not others could prove problematic—how does one determine which groups are worthy of the waiver? To waive the fees for all non-profits would have a significant impact on the Community Recreation Fund, and no doubt increase the number of groups making similar requests. It is worth noting that the current fee structure for use of the Community Center's facilities and the City's park buildings already has reduced fee schedules for residents and non-profit organizations. (See Attachment A: Sunnyvale Community Center Fee Schedule and Attachment B: Sunnyvale Park Buildings Fee Schedule). For facilities such as the Community Center ballroom and meeting rooms, these rates are reduced in 'non-prime time' – primarily week-day hours when there is less demand to use these facilities. Weekends are considered the prime time for use of the Community Center ballroom, primarily for wedding receptions, retirement events and similar family celebrations. No reduction in rates is provided for Community Center facilities during prime time, and profits from rentals are returned to the Community Recreation Fund to help subsidize youth and senior programs. Reductions in this revenue stream due to a change in policy would result in the need to cut additional services to youth and/or seniors, or the need to provide a greater General Fund subsidy to the Community Recreation Fund.

In accordance with Council Policy, organizations wishing a higher level of support (such as further reductions in fees for use of City facilities) are encouraged to pursue a special agreement with the City. These special agreements typically deal with on-going relationships where the City provides a reduced fee in return for a commitment from the organization to assist with the provision of Council-approved service levels. In other words, the City receives something of value in return for the fees it waives. Little leagues, youth soccer, swim and gymnastics groups, as well as many adult groups providing recreational services to the community fall under this umbrella.

Council is currently considering the free use of park buildings by local non-profit groups for meetings with less than 20 people. This is a proposed service level change that is identified among the budget supplements in the City Manager's proposed FY 04-05 budget. Staff is suggesting implementing this on a trial basis for one year for the use of park buildings. After one year, staff will be in a better position to evaluate the demand for these facilities by local non-profits, including associated expenses and loss in revenues to the Community Recreation fund. Broadening this to include all the City's recreation facilities such as the Community Center or Senior Center ballrooms and meeting rooms would have a much greater impact on the Community Recreation Fund.

FISCAL IMPACT

In regard to a fee waiver for facilities use, the impact is difficult to predict. Staff estimates approximately $70,000 to $100,00 of the revenue from facility rent comes from use of the Community Center ballroom.

Should Council choose to waive fees for all uses by local non-profit organizations, revenues would be greatly affected, as staff would anticipate many more requests for similar waivers. Any reduction in existing revenue streams would require a corresponding reduction in subsidized services to youth and/or seniors, or a corresponding increase in General Fund subsidy to the Community Recreation Fund.

PUBLIC CONTACT

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the City Clerk’s office, Library, Parks and Recreation Administration, Community Center, and Senior Center.

Copies of this report were provided to the Parks and Recreation Commission and Arts Commission as information only.

Due to the desire of Council to review this report in a timely manner, neither the Arts Commission nor the Parks and Recreation Commission had an opportunity to review and make a recommendation regarding this report.

ALTERNATIVES

1. Retain consistency with City policy and do not grant exceptions.

2. Grant a fee waiver for the Community Center's facilities for all requests made by local non-profit organizations.

3. Grant a fee waiver for the Community Center's facilities for local non-profit organizations on a case by case basis and approve a fee waiver for Ms. McIntyre's requested use of the Community Center ballroom.

4. Other direction as approved by Council.

RECOMMENDATION

Staff recommends Alternatives #1.