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HomeMy WebLinkAboutResolution No. 4312, Revision of Story Mansion Rental and Deposit Fees.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Carole Brennan, Ed. D., Recreation Superintendent Ron Dingman, Parks and Recreation Director REVIEWED BY: Chuck Winn, Assistant City Manager SUBJECT: Revision of Story Mansion Rental and Deposit Fees MEETING DATE: April 18, 2011 AGENDA ITEM TYPE: Action Item RECOMMENDATION: Approve Resolution 4312 revising the Story Mansion Rental and Deposit fees as recommended by staff. BACKGROUND: On March 23, 2009 the City Commission adopted Resolution 4156 which established rental and deposit fees for the Story Mansion and added a provision that rental fees for the Mansion would be 50% of the established fees for the first year. On January 1, 2011, rental fees were returned to the full rate as established in Resolution 4156. Since that time, there has been a dramatic decrease in reservations for the Mansion. In January, February and March of 2011 we had one paying rental of $237.50 compared to eight paying rentals totaling $3,732.50 for January, February and March of 2011. To date far fewer spring and summer reservations (April-August) have been booked as compared to this time last year. Presently, the Story Mansion has only seven paid events scheduled between April and September of 2011 totaling $2,582.50 in rental fees compared to $16,990.33 in 2010. Below is a chart showing rental fees collected for the Story Mansion for 2010 (blue) and the 2011 (red). Story Mansion Paid Rentals Fees January, February and March of 2010 $3,732.50 January, February and March of 2011 $237.50 April through September of 2010 $16,990.33 April through September of 2011 $2,582.50 In speaking with potential renters, the feedback we’ve received is that rental of the Story Mansion is cost prohibitive even for non-profits. We are renting at a rate commensurate with other rental venues such as the Emerson Ballroom, Baxter Ballroom, Best Western and Holiday 49 Inn. However, we do not offer set-up, flatware, linens, clean-up, breakdown or as much parking as these other venues. Emerson Ballroom $60.00 an hour or $900.00 for the day, tables, chairs, stage, bar area and kitchen catering Baxter Ballroom $850.00 Sun. – Thurs., $1500 Fri. and Sat, tables, chairs, prep area, catering, and a bartender, $125.00 clean-up fee additionally required Best Western $1,800.00 11am – midnight, tables, chairs, stage, dance floor, set-up, clean-up, servers and a bartender Holiday Inn $1,000 June, July and August, $500 all other months, set-up of tables and chairs, linens, clean-up and a suite for the night are provided The proposed rental fee revisions are approximately 20% higher than the introductory half price rate and about 40% lower than the current full price. While higher than the original half price rental fees, the increased fees would be more affordable for potential renters than the current full rental fees and could potentially increase reservations and revenue. In addition to this new rental rate, we are also recommending a revision to the adopted cleaning and damage deposit fee for the Story Mansion. The deposit fee is currently set at one half the rate of the rental, which could be as little as $7.50 for rental of the Library. We believe that setting the proposed cleaning and damage deposit to a flat rate of $400.00, regardless of the type of rental, would help reduce potential damage to the facility while at the same time encourage users to properly clean the facility following their event. We do not believe this rate would be a deterrent to renting the facility as we do not cash cleaning and damage deposit checks unless there is damage or the venue was not properly cleaned. Since opening the Story Mansion for rental on July 24, 2009, approximately 10% of the renters have not cleaned the facility properly resulting in about 80 hours of additional cleaning by staff. In addition to this, the Mansion has experienced approximately $3,500 in damage due to negligence. Below is a chart showing the current City of Bozeman Resident rental fees for the Story Mansion (blue) and the proposed fees (red). Non Resident fees are currently 20% higher. Area of Mansion Full Day Fri.-Sat.-Sun.- Holidays Full Day Mon.-Thurs. 1/2 Day Fri.-Sat. Sun.- Holidays 1/2 Day Mon.-Thurs. Entire First Floor with kitchen and grounds $1,700 $1,000 $850 $500 $850 $500 $425 $250 Entire First Floor with kitchen only $1,400 $840 $700 $420 $700 $420 $350 $210 Kitchen Only $300 $300 $150 $150 $150 $150 $75 $75 Library Only $15 per hour $25 $15 per hour $25 $15 per hour $25 $15 per hour $25 50 Rental Times • Full Day – 9am to 11pm • Half Days – 9am to 4pm and 5pm to 11pm • Holidays rates applied on the following holidays: New Years Eve, New Years Day, Memorial Day, July 4, Labor Day, Halloween, Christmas Eve, and Christmas Day. Rental Information • Non-City of Bozeman Resident fees – additional 20% • City of Bozeman and uses which have a direct benefit to Story Mansion and grounds- No charge • Government and Non-Profit Organizations – 50% discount • The Library is only available for rent during daytime hours (9am-11pm) during the week with a two hour minimum, if the rest of the building is not rented. The library can only be rented 48 hours in advance. • Facility clean up is the renter’s responsibility and must be completed at the conclusion of their event. FRIENDS OF THE STORY (FOS): We met with the FOS to discuss this rate structure in light of their offer to reimburse the City for any difference between the operational costs of the mansion and the rental income for that fiscal year up to a maximum of $5,000. They are in agreement with the proposed rental and deposit fee revisions as outlined in this memorandum and resolution. FISCAL EFFECTS: These revised fees would increase the City’s ability to recover costs associated with the rental of the Story Mansion. ALTERNATIVES: As suggested by the City Commission. Attachments: · Resolution 4176 dated March 23, 2009 · Commission memo dated June 8, 2009 Report compiled on 3/24/11 51 Page 1 of 3 COMMISSION RESOLUTION NO. 4312 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING THE FEE SCHEDULE FOR RENTAL OF THE STORY MANSION. WHEREAS, the Park and Recreation Director had submitted a recommendation for establishment of Story Mansion rental fees; and WHEREAS, the City Commission found that it is in the best interest of the City to establish reasonable fees for use of the Story Mansion to offset a portion of the cost of maintenance; and WHEREAS , Resolution No. 4156, Establishing a Fee Schedule for the Rental of the Story Mansion was approved by the City Commission at their Regular City Commission on March 23, 2009; and WHEREAS, the City Commission at their Regular City Commission Meeting on Monday, June 8, 2009 made a motion to amend Resolution No. 4156, and made Amendments to the Fee Schedule for the Rental of the Story Mansion; and WHEREAS, the full rates that became effective on January 1, 2011 have had a detrimental effect on the rental of the Story Mansion and City Staff has analyzed the rate structure and recommended a revised rate structure in agreement with the Friends of The Story; NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana: Section 1 That the following fee schedule be adopted for the rental of the Story Mansion as follows: 52 Page 2 of 3 Rental Times • Full Day – 9am to 11pm (all outdoor activities must cease by 9 p.m.) • Half Days – 9am to 4pm and 5pm to 11pm (all outdoor activities must cease by 9 p.m.) • Holidays rates applied on the following holidays: New Years Eve, New Years Day, Memorial Day, July 4, Labor Day, Halloween, Christmas Eve, and Christmas Day Rental Information · Cleaning and Damage Deposit is $400 and is due at the time of reservation. Damages and cleaning will be deducted from deposit. Reservation cancelations must be received a minimum of 60 days prior to event for full refund. · Non-City Resident fees – additional 20% · City of Bozeman and Uses Beneficial to Story Mansion and grounds- No charge · Government and Non-Profit Organizations – 50% discount · The Library is only available for rent during daytime hours (9am-11pm) during the week with a two hour minimum, if the rest of the building is not rented. The library can only be rented 48 hours in advance. · No set up or staff provided. Clean up is the responsibility of renter and must be completed at the conclusion of event. · A Security Guard is required for events with 75 or more people and where alcohol is served. Area Full Day Fri.-Sat.-Sun.- Holidays Full Day Mon.-Thurs. Half Day Fri.-Sat.-Sun.- Holidays Half Day Mon.-Thurs. First Floor with Kitchen & Grounds $1,000 $500 $500 $250 First Floor with Kitchen $840 $420 $420 $210 Kitchen only $300 $150 $150 $75 Library only $25 $25 $25 $25 53 Page 3 of 3 · Only outdoor activities at the Mansion that may be considered for lasting beyond 9 p.m. are community events approved by the City Commission through a Special Temporary Use Permit. Section 2 The fee schedule shall be effective immediately upon passage of this resolution. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular and stated session thereof held on the 18th day of April, 2011. __ JEFFREY K. KRAUSS Mayor ATTEST: STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: _____ GREG SULLIVAN City Attorney 54 COMMISSIONRESOLUTIONN04176ARESOLUTIONOFTHECITYCOMMISSIONOFTHECITYOFBOZEMANMONTANAAMENDINGTHEFEESCHEDULEFORRENTALOFTHESTORYMANSIONWHEREAStheParkandRecreationDirectorhadsubmittedarecommendationforestablishmentofStoryMansionrentalfeesandWHEREAStheCityCommissionfoundthatitisinthebestinterestoftheCitytoestablishreasonablefeesforuseoftheStoryMansiontooffsetaportionofthecostofmaintenanceandWHEREASResolutionNo4156EstablishingaFeeSchedulefortheRentaloftheStoryMansionwasapprovedbytheCityCommissionattheirRegularCityCommissiononMarch232009andWHEREAStheCityCommissionattheirRegularCityCommissionMeetingonMondayJune82009madeamotiontoamendResolutionNo4156andmadeAmendmentstotheFeeSchedulefortheRentaloftheStoryMansionNOWTHEREFOREBEITRESOLVEDbytheCityCommissionoftheCityofBozemanMontanaSection1ThatthefollowingfeeschedulebeamendedfortherentaloftheStoryMansionasfollowsAreaFullDayFullDayHalfDayHalfDayFriSatSunMonThursFriSatSunMonThursHolidasHolidasEntireFirst1700850850425FloorGroundsEntireFloor1400700700350woKitchenKitchenonly30015015075Libraryonly15perhour15perhour15perhour15perhourPage1of355 iRCleaningandDamageDepositis50oftherentalfeedueatthetimeofreservationDamagesandcleaningwillbedeductedfromdepositReservationcancelationsmustbereceivedaminimumof60dayspriortoeventforfullrefundFullDaygamto11pmAlloutdooractivitiesmustceaseby9pmHalfDaysgamto4pmandSpmtollpmAlloutdooractivitiesmustceaseby9pmHolidaysforcomputingratesareNewYearsEveNewYearsDayMemorialDayJuly4LaborDayHalloweenChristmasEveChristmasNonCityResidentfeesadditiona120CityofBozemanandUsesBeneficialtoStoryMansionandgroundsNochargeOtherGovernmentandNonProfitOrganizations50discountNosetuporstaffprovidedCleanupistheresponsibilityofrenterandmustbecompletedattheconclusionofeventASecurityGuardisrequiredforeventswith75ormorepeopleandwherealcoholisservedOnlyoutdooractivitiesattheMansionthatmaybeconsideredforlastingbeyond9pmarecommunityeventsapprovedbytheCityCommissionthroughaSpecialTemporaryUsePermitSection2ThefeescheduleshallbeeffectiveimmediatelyuponpassageofthisresolutionAllfeeswillbezofthepricelistedonthefeeschedulethroughJanuary12011excludingtheLibraryOnJanuary12011thefeeswillgotothefullpriceaslistedinthefeescheduleincorporatedhereinPASSEDANDADOPTEDbytheCityCommissionoftheCityofBozemanMontanaataregularandstatedsessionthereofheldonthe13hdayofJuly2009KAARENJACOBSMayorPage2of356 ATTESTSYLMECMCCityerAPPROVEDASTOFORMGSULIVANyAttorneyPage3of357 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Ron Dingman, Park and Recreation Director Chuck Winn, Assistant City Manager SUBJECT: Reconsideration of Story Mansion Rental Fees as requested by Mayor Jacobson MEETING DATE: June 8, 2009 RECOMMENDATION: Reconsider certain fees for the Story Mansion as requested by Mayor Jacobson. BACKGROUND: On March 23 the City Commission adopted Resolution 4156 which established fees for the rental of the Story Mansion and added a provision that rental fees for the Mansion will be 50% of the established fees for the first year. The established fee for rental of the Library Room is $15 per hour. For the first year the fee will be $7.50 per hour which may not be sufficient to cover maintenance and janitorial costs associated with rentals. A copy of the adopted fee schedule for the Mansion is pasted below for your reference. Area Full Day Fri.-Sat.-Sun.- Holidays Full Day Mon.-Thurs. Half Day Fri.-Sat.-Sun.- Holidays Half Day Mon.-Thurs. Entire First Floor including the grounds $1,700 $850 $850 $425 Entire Floor w/o Kitchen $1,400 $700 $700 $350 Kitchen only $300 $150 $150 $75 Library only $15 per hour $15 per hour $15 per hour $15 per hour 59 · Cleaning and Damage Deposit is 50% of the rental fee, due at the time of reservation. Damages and cleaning will be deducted from deposit. Reservation cancelations must be received a minimum of 60 days prior to event for full refund. · Full Day – 9am to 11pm · Half Days – 9am to 4pm and 5pm to 11pm · Holidays for computing rates are; New Years Eve/ New Years Day/ Memorial Day/ July 4/ Labor Day/ Halloween/ Christmas Eve/ Christmas · Non-City Resident fees – additional 20% · City of Bozeman and Uses Beneficial to Story Mansion and grounds- No charge · Other Government and Non-Profit Organizations – 50% discount · No set up or staff provided. Clean up is the responsibility of renter and must be completed at the conclusion of event. · A Security Guard is required for events where alcohol is served to over 50 people. Mayor Jacobson would like the commission to reconsider 2 items related to the rental of the Story Mansion: · Fees for rental of the Library · Fees for weddings FISCAL EFFECTS: N/A ALTERNATIVES: As suggested by the City Commission. Attachments: · Gallatin Valley Wedding Venue list Report compiled on 6/03/09 60