Agenda item

(Cabinet Member with Special Responsibility Councillor Thomas)

 

Report of the Head of Property Services.

(Cabinet Member with Special Responsibility Councillor Thomas)

 

(It was noted that Councillors Archer, Ashworth and Kerr had previously declared personal and prejudicial interests in the following item in view of their membership of Morecambe Town Council. They all left the meeting prior to consideration of the item.)

 

The Head of Property Services submitted a report reviewing the process and charges for the hire of rooms and facilities in the Municipal buildings for the next financial year.

 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

 

Room hire charges

 

Option 1

That the hire charges be raised to the proposed level as detailed in the body of the report. This will ensure that the majority of fee paying events make a surplus and may potentially raise income by £6,500 (giving an overall surplus of £9,500 based on 2008/09 bookings), noting that this is separate from inflationary increases already applied during the 2010/11 Draft Budget Process, therefore the additional surplus over and above that already included in the 2010/11 Budget is actually £3,900.

 

The majority of hirers will only incur small increases in hire charges which it is hoped will not affect their choice of venue. Although any increase in charges will inevitably be unpopular and may result in some hirers seeking alternative venues which could reduce income.

 

Option 2

No change. This will be popular with hirers but will leave 13.5% of bookings where a hire charge is making a loss. It is envisaged that room hire would continue to make a small surplus.

 

Registered charitable organisations and local non profit making organisations

 

Option 1

Remove the 50% discount for registered local charitable organisations and local non profit making organisations and the 25% discount for non local registered charities. This would be extremely unpopular with these organisations and combined with the proposed increase in hire charges would have a detrimental effect on their events. This is likely to result in the cancellation of such events, adverse publicity and a loss of income.

 

Option 2

Introduce a single discount rate of 25%. This would increase the Council’s income by £2,600 but is likely to be unpopular with hirers who have previously enjoyed a 50% reduction. It may result in adverse publicity and some seeking an alternative venue or not holding their event at all.

 

Option 3

Extend the 50% discount to include all registered charities. This would have little impact on income, would simplify the charging format, and may attract other hirers which would ultimately increase income.

 

Option 4

No change. Retain the 50% discount for registered local charitable organisations and local non profit making organisations and the 25% discount for non local registered charities.

 

Performing Rights Society (PRS) Fees

 

Option 1

Recharge the hirers incurring fees under the PRS music licence the actual cost of those fees. This would be a saving for the Council and only the hirers incurring the charges would be affected.

 

Option 2

No change.  Lancaster City Council continues to pay the fees incurred by hirers due under the PRS music licence. These fees are specifically for music performed and are incurred by only a few hirers. Continuing to pay the fees would be popular with these hirers but at a cost to the Council.

 

Repeat bookings

 

Option 1

Introduce a 5% discount on room hire charges to anyone booking rooms on 5 or more occasions or for 3 or more consecutive days in a 12 month period. This may encourage repeat bookings from hirers and will encourage existing hirers who use our rooms regularly to continue to do so.

 

Option 2

No change. This may result in the loss of one or both of our most profitable hirers if the proposed charges are approved. Whilst the increase on each booking is relatively small it becomes a significant amount when multiplied over many bookings.

 

Equipment hire

 

Option 1

Introduce the suggested charge for hire of glassware, cutlery and tablecloths. The City Council owns these items and they are currently used only for in house events. It would seem sensible to make them available for hire and raise some additional income from their use.

 

Option 2

No change – the items would be retained for council use only.

 

Officer preferred option for room hire charges

 

The preferred option is option 1, to raise the room hire charges to the proposed level set out in appendix A of the report. This will increase income from room hire whilst not imposing big increases in charges on our hirers.

 

Officer preferred option for registered charitable organisations and local non profit making organisations

 

The preferred option is option 3,  to extend the 50% discount to include all registered charities. This would have little impact on income, would benefit charities, would simplify the charging format, and may attract other hirers which would ultimately increase income.

 

Officer preferred option for Performing Rights Society (PRS) Fees

 

The preferred option is Option 1, to recharge the hirers incurring fees under the PRS music licence the actual cost of those fees. This would be a saving for the Council and only the hirers incurring the charges would be affected.

 

Officer preferred option for repeat bookings

 

The preferred option is option 1, to introduce a 5% discount on room hire charges to anyone booking rooms on 5 or more occasions or for 3 or more consecutive days in a 12 month period. This may encourage repeat bookings from hirers and will encourage existing hirers who use our rooms regularly to continue to do so.

 

Not doing this may result in the loss of one or both of our most profitable hirers if the proposed charges are approved. Whilst the increase on each booking is relatively small it becomes a significant amount when multiplied over many bookings.

 

The loss of either of these hirers would have a significant impact on the room hire income which could potentially decrease by up to 45%.

 

Officer preferred option for equipment hire

 

The preferred option is option 1, to introduce a hire charge for glassware, cutlery and table cloths. Currently these items are used only for City Council functions and meetings. It would seem sensible to make them available for hire and raise income from their use.

 

It was moved by Councillor Thomas and seconded by Councillor Mace:-

 

“(1)      That the revised charging format and room hire charges as set out in appendix A to the report be adopted. 

 

(2)               That the 50% reduction in room hire charges for registered local charitable organisations (whose proceeds go to local charities) and local non profit making organisations be retained and extended to all registered charities.

 

(3)        That option 1, as set out in the report, for PRS fees, repeat bookings and equipment hire, be approved in each case.”

 

Members then voted:-

 

Resolved unanimously:

 

(1)        That the revised charging format and room hire charges as set out in appendix A to the report be adopted. 

 

(3)               That the 50% reduction in room hire charges for registered local charitable organisations (whose proceeds go to local charities) and local non profit making organisations be retained and extended to all registered charities.

 

(3)        That option 1, as set out in the report, for PRS fees, repeat bookings and equipment hire, be approved in each case.

 

Officers responsible for effecting the decision:

 

Corporate Director (Regeneration)

Head of Property Services

 

Reasons for making the decision:

 

The decision will benefit the City Council by increasing income whilst having a relatively minor impact on the majority of hirers.

 

(Councillors Archer, Ashworth and Kerr returned to the meeting at this point and the meeting adjourned for lunch at 11.55am. The meeting reconvened at 12.15pm.)