CITY COUNCIL: Resolution Authorizing Addition of Third Tier to Facility Use Fee Structure for Sunset Theater Tickets

Meeting Date: 2 February 2010
Prepared by: Rich Guillen

City Council
Agenda Item Summary

Name: Consideration of a Resolution authorizing the addition of a third tier to the facility use fee structure for Sunset Theater ticket purchases of $41.00 or greater per individual ticket.

Description: Staff received a request from the Sunset Cultural Center, Inc. (“SCC”) to add an additional tier to its Facility Use Fee (FUF) structure. SCC is requesting the proposed increase to offset increasing maintenance costs for the Sunset Theater.

The SCC determined that an appropriate way to support some of the increased cost would be through the establishment of an additional tier to their facility use fee structure. It is becoming more common for theaters to impose such a fee, levied on a “per ticket sold” basis that is paid by those attending a performance or event. Programming, budgeting and subscription sales cycles require an immediate decision of the facility use fee issue and should be placed into effect immediately.

Fiscal Impact: Creation of the third tier of the facility use fee structure will generate new revenue to help offset the operational cost of the Sunset Theater. Based on the SCC’s calculations, revenue generated is expected to be $31,586 in the upcoming season.

Staff Recommendation: Approve the Resolution.

Important Considerations: There are currently two tiers of facility use fees in place for ticket purchases at the Sunset Center. A $1 FUF is added to tickets costing between $1 and $20 and a FUF of $2 is added to tickets costing $21 and greater. The requested new third tier of a $3 fee would only affect ticket price purchases greater than $41.00.

A facility use fee is a necessary and appropriate way to help offset a major portion of the new cost associated with operating the Sunset Theater. Because of the business cycles of the performing arts business, it is important that Council make a decision immediately to provide
direction for the Sunset Theater users during the 2010-2011 season and beyond.

Decision Record: None

Reviewed by:

__________________________ _____________________
Rich Guillen, City Administrator Date

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2010-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AUTHORIZING THE ADDITION OF A THIRD TIER TO THE FACILITY USE FEE STRUCTURE FOR SUNSET THEATER TICKET PURCHASES OF $41.00 OR GREATER PER INDIVIDUAL TICKET

WHEREAS, it is reasonable to expect the patrons of the Sunset Theater to contribute to that cost to maintain the Sunset Theater; and

WHEREAS, it is an increasingly common practice in theaters and performing arts centers to charge a “Facility Use Fee” which is paid directly by the patrons to the operator of the theater; and

WHEREAS, the proposed additional tier of three dollars ($3) is for ticket sales greater than forty one dollars ($41) per individual ticket; and

WHEREAS, to enable the historic users time to inform their subscribers and other ticket buyers of such a fee beginning with the commencement of the 2010-2011 season, action must be taken in a timely manner.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:

1. Authorize and instruct the management of the Sunset Community and Cultural Center to add a third tier to the facility use fees imposed on the sale of a ticket to any event taking place in the Sunset Theater commencing February 2, 2010. The fee shall be $3.00 on any ticket sold at a price of $41.00 or more.

2. Authorize the Management of the Sunset Center to waive the facility use fee in those circumstances where attendance is solely by organized, student audiences paying less than $8.00 per admission.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 2nd day of February 2010 by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:

SIGNED:

_______________________
SUE McCLOUD, MAYOR

ATTEST:

_____________________
Heidi Burch, City Clerk

FUF Rates by Theater
Theater Seats FUF Charges
CA Center for the Arts - Escondido 1525 $2 all seats
Christopher Cohen PAC - San Luis Obispo 1289 $3 all seats
East County PAC - El Cajon 1142 $2.00 all seats
Fox Theater - Salinas 1,000 max Not online / no return call
Gallo Center for the Arts - Modesto 1251 $3 all seats
Golden State Theater - Monterey 921 aprox Not online / no return call
Granada Theater - Santa Barbara 1553 $1 - $3 per seat
Herbst Theater - San Francisco 916 Not online / no return call
Julia Morgan PAC - Berkley 390 $1.00 all seats
Lancaster PAC - Lancaster 758 Not online / no return call
Lesher Center for the Performing Arts 785 $3 all seats
Mondavi Center - Davis 1,801 $1.00 all seats on paid events
$.50 all seats on free events with
$500 maximum.
Mountain View CPA - Mountain View 589 $2 or $3 Breakdown not listed
Santa Cruz Civic - Santa Cruz 2,000 Max $1 - $4 per seat
Yerba Buena - San Francisco 757 $1 - $2 per seat