The City Council on Monday haggled over and changed several
proposals, most notably fees charged to the public for renting the
Veterans Memorial Building when it re-opens in less than a
month.
The City Council on Monday haggled over and changed several proposals, most notably fees charged to the public for renting the Veterans Memorial Building when it re-opens in less than a month.
Additionally, officials said under the current rental fee structure – designed to be affordable to allow widespread public use – the facility would operate at a projected $173,000 deficit during its first year.
“We’re trying to maximize the use of the facility to its fullest,” said Clay Lee, the city’s director of management services, who gave a computer-generated presentation to the Council and the Parks and Recreation Commission.
Officials from Hollister’s Recreation Division and Management Services had previously prepared the 27-page policy book for the city-operated Veteran’s Memorial Building. Among the research performed to draft policies, officials looked at costs of similar institutions outside of San Benito County.
First, based on a suggestion made from the gallery by former Hollister Mayor Richard Boomer, the Council and Commission requested the city add a 20-percent surcharge to anyone from outside the county who rents the building for an event.
Regarding proposals for standard rental fees, organizers had proposed the city charge customers in six categories. Among them, the Council made changes to three – “private-social” groups, which include wedding receptions and quinceaneras; “business” groups; and “education and governmental agencies,” which include school groups.
Education and governmental agencies would have been charged the least under the initial proposal. However, officials requested the city raise the fees so those charges would correspond with nonprofit groups. Several Council members pointed out that schools historically have not offered discounts to the city for use of school facilities.
Also, private-social groups would have been charged more than business groups under the initial proposal. However, the Council and Commission officials reversed the fee structures for those two categories, and business groups will now be charged more than private-social groups.
“We need to get the ‘private’ (fees) down,” said Commission Chairperson Robert Baumgartner, who used the example of an 80-year-old couple celebrating their 50th wedding anniversary. He said the couple shouldn’t have to pay $1,500 or $1,600 to rent the facility.
Council members Tony Bruscia and Pauline Valdivia said residents with lower incomes should have access to the building as well.
As the Council and Commission discussed ways to reduce fees, Lee offered a reminder about the deficit the city already faces.
“We understand about affordability,” Lee said. “That’s the focus of the recreation programs in general; we try to keep them affordable. But this is the bottom line – you’re $173,000 in the hole with the way it’s set up right now.”
The projected expenditures came to $287,000, while the revenues came to $114,000. That cost includes a projected $3,200 for standard utilities, along with monthly bills for the new heating and air-conditioning systems.
“That’s a lot of money for utilities,” Councilman Tony Bruscia said.
The other three categories for assigning fees – which will remain unchanged – are “city and veterans” groups, “nonprofits” and “commercial” groups. City and veterans groups will not be charged for use of the building.
Lee said the city will make a “heavy push” to market the facility during the first year to increase future occupancy and revenues.
The final policies will come back for final approval at a Council meeting either May 5 or May 19. Recreation Services Manager Robert Ornelas emphasized the importance of finalizing policies, particularly fees, as soon as possible so the city can start booking the venue.
“People are very anxious. They’re in line,” he said.
