8.1 Bicentennial Center Rental RatesCITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
06/4/2007 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: APPROVED FOR
NO: 8 AGENDA:
BICENTENNIAL CENTER
ITEM
NO. 1
BY:
BY: Keith Rawlings
Page 1
ITEM: Resolution No. 07-6401
A resolution amending the City of Salina Comprehensive Fee Schedule by establishing rental fees for
the Bicentennial Center.
BACKGROUND:
The Bicentennial Center staff and Finance Department recently completed a financial review of
Bicentennial Center activities. Their financial condition is reviewed regularly. However, the recent
review was due primarily to a noticeable reduction in the beginning year and projected year-end fund
balance. The 2007 year-end fund balance is projected to be $78,000, or $122,000 under the
established target of $200,000. While we recognize this type of activity is not designed to be fully self-
sufficient, we do believe the fund balance ma rgin can be met and th e revenue/expenditure gap
narrowed.
Several explanations exist for the current financia l condition. These include some unanticipated
maintenance expenditures in 2007 (e.g. Heritage Hall sound system repairs and refurbishing wireless
Internet systems for our clients). In addition, we have seen an increase in the cost of food. Overall,
the Bicentennial Centers expenditures seem to be reasonable and all have been within normal ranges
of increased costs incurred by other segments of our business and the budget. However, the activity
revenues for this operation have not kept pace over the last few years. Methods of offsetting these
increases have been examined and, while no one appr oach will solve revenue problems, some are
appropriate to undertake at this time.
The rate structure currently charged at the Bicentennial Center has recently been examined. In the 28
years we have been open, our rates have increased only three times (1985, 1989 & 1999) and it has
been almost 9 years since the last rate increase. Yet, we continue to see increases in our costs to
operate the facility (utilities, repairs, maintenance and salaries, for example).
Therefore, we are recommending the following three (3) changes:
A rental rate increase of 10% be implemented, across the board, beginning July 1, 2007. We
will honor any outstanding contracts or commitments under the older rate structure through the
remainder of this year.
Our rent discount for meal functions be reduced from 50% to 10%.
In accordance with our advertising contracts, we are also proposing that our new anchor
advertising partners be permitted to utilize two (2) meeting room rentals per year for up to a
$350 discount per use, subject to time and space availability. This would permit each to utilize
up to four (4) of the upstairs meeting rooms or no more than ¼ of Heritage Hall for each event
rental before normal rent charges apply.
The marketability of the facility is something that must be considered. After reviewing the costs of
competing entities, we ar e confident that these c hanges will continue to allo w us to be competitive
with facilities in our region who are seeking the sa me clients. Based upon the past two years of
revenue generated, a rate increas e has the potential to increase our revenue by approximately
$20,000 - $28,000. The reduction in the meal discount could increase our revenue by approximately
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
06/4/2007 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: APPROVED FOR
NO: 8 AGENDA:
BICENTENNIAL CENTER
ITEM
NO. 1
BY:
BY: Keith Rawlings
Page 2
$10,000 - $15,000. The discount for anchor partners coul d potentially reduce our revenue by up to
$1,400 per year, if each of the two (2) anchor partners utilized this benefit, however it must be noted
that each anchor partner is paying between $80,000 and $100,000 to us for advertising rights and to
enable us to purchase various electronic equipment in the facility.
An important provision of the proposed resolution is the ability to continue to modify the rate structure
in special circumstances. This permits us to have some limited flexibility as we negotiate contracts or
otherwise compete for events. Some examples being utilized occasionally include:
1. Rental of the Arena and Heritage Hall for entertainment or other events where an admission is
charged, more often than not involves negotiation. This may result in a flat amount being agreed
upon, or a ceiling or cap being placed on the rent after the percentage of gross ticket sales is met.
2. Banquets or large events which include meal functions necessitate our being able to discount the
rent in order to be competitive. The practice, since the Center opened, has been to discount the
rent up to 50%, depending upon the size of t he event, potential revenue from the catering
commission (15%), if outside caterers provide service, and our in-house food and beverage sales.
As noted above, the 50% reduction will be reduced to a 10% reduction, but we believe that this
discount will still enable us to negotiate favorably with potential clients.
3. Organizations holding regularly scheduled meetings (e.g. civic clubs) are charged only the price of
the meal and no rent. This permits us to move or “bump” them if a rent-paying client comes into
the building.
4. On occasion, as a good-will gesture, we will pr ovide a complimentary room. An example of that
would be permitting a tournament or event manager to use one of our dressing rooms as a
temporary office or a place to relax.
Other things are being done to try to increase the revenue at the Bicentennial Center. Those include
a total review of our menus and m eal pricing and examining our policies regarding discounts for city
departments using the facility. In addition, Bicentennial Center staff will closely review all operating
costs to determine if cost reductions that do not result in service quality reductions are viable.
FISCAL NOTE:
If all three recommendations are approved, It is ant icipated that this action has the potential to
increase our rental revenue by approximately $30,000 to $40,000 per year.
CONFORMANCE WITH THE STRATEGIC PLAN:
Approval of these changes will permit us to be financially responsible while continuing to provide the
highest quality convention, meeting, sports and entertainment services to the Salina community.
COMMISSION ACTION:
It is recommended that the City Commission adopt Resolution No. 07-6401.
Salina Bicentennial Center
Rental Rates
(Effective 7/1/07)
ARENA
Commercial ticket selling event or maximum set-up, $2,120 minimum or 10% of gross
including portable chairs, seating platforms, staging ticket sales
lighting, etc.
Box Office Charge $.50 per ticket, 64 comps, plus day of
show sales
Athletic events (local, high school or college / non-commercial)
Monday - Thursday $1,200
Friday - Sunday $1,465
Tournaments (per day) $1,070
Sporting events (professional or semi-professional franchises)
(Rate applies if team books multiple dates $ 880 plus 10% of gross ticket sales
during each playing season – does not have to for tickets sold exceeding 2,000 for be
consecutive dates.) any game
FULL FLAT MOVE-IN/
SERVICE*FLOOR**MOVE OUT***
1 day $1,465 $1,200 $ 600
2 days $2,565 $2,100
3 days $3,300 $2,700
HERITAGE HALL
1 day $1,070 $ 800 $ 400
2 days $1,875 $1,400
3 days $2,410 $1,800
One-half Heritage Hall $ 700 $ 485 $ 245
One-fourth Heritage Hall $ 350 $ 245 $ 125
ALL MEETING ROOMS
1 day $ 505 $ 255
2 days $ 885
3 days $1,140
#200 or #201 $ 95
#202A or #203A $ 55
#202AB or #203AB $ 110
#202ABC or #203ABC $ 165
NEW DRESSING ROOMS
Page 2
Team Dressing Rooms $ 50 each quarter
Star Dressing Rooms $ 65 each
Team Dressing Rooms (all 4 quarters)
1 day $ 200
2 days $ 350
3 days $ 450
Full Dressing Room Wing (including training room)
1 day $ 330
2 days $ 580
3 days $ 745
MISCELLANEOUS
Lobby $ 95
VIP Room $ 95
Kitchen $ 55 plus cost for staff required to supervise (1 minimum)
Parking Lot $ 0.0055 per square foot
Electrical Hook-Ups $ 10 per night (no sewer or water)
(set administratively)
Electrical Service
(set administratively)
110v No Charge with room rental
220v-single phase $ 15 per day, if ordered in advance (+10% at move-in)
(1)
220v-3 phase $ 20 per day, if ordered in advance (+10% at move-in)
(1)
(220-3 phase service is available inside the Arena only and not outside the building.)
ENTIRE BUILDING
1 day $3,370 $2,835 $1,420
2 days $5,900 $4,960
3 days $7,585 $6,380
ANCHOR ADVERTISING PARTNER DISCOUNT
Any sponsor who has an approved advertising agreement with the city as an Anchor Partner
(payment of $80,000 or more over a 10 year period), is eligible for a discount of up to $350 each for
up to two (2) times per year, subject to time and space availability.
MEAL FUNCTIONS
A 10% reduction on daily rent is available for that portion of the Center used for full meal functions.
Only approved caterers are allowed to work facility functions. Check with Food and Beverage
Manager for approved caterers list. Caterers are assessed 15% of their charges (not including
sales tax or gratuities) for use of Center facilities.
* FULL SERVICE -- Room set up in accordance with tenant’s specifications.
** FLAT FLOOR – Open floor – no chairs, tables, staging or other equipment set-up by staff. Such equipment may be
made available for tenant’s use at no charge.
*** MOVE-IN / MOVE-OUT -- This charge is made only if move-in or move-out occurs on a day prior to or following the day
of the event. Otherwise, move-in and move-out is included in the daily rent.
TELEPHONE JACKS
Rev. 5/07
Page 3
Arena 1 - East concourse wall / 1 - South side / 1 - West side
Heritage Hall 1 - Northwest quarter
Lobby 1 - Southeast wall / 1 Northwest wall / 1 North atrium / 1 - South atrium
Room #201 2
Room #203 1
Upstairs Lobby 1
PARKING
No. of Cost per day
No. of Parking Cost multi-day
Sq. Ft. Spaces per day rental
Near West Lot 140,026 510 $ 770.00 $ 578.00
Far West Lot 84,240 160 $ 463.00 $ 350.00
East Lot 125,185 450 $ 688.50 $ 520.00
TOTAL 349,451 1,120 $ 1,921.50 $ 1,448.00
SEATING CAPACITIES
****
Auditorium Classroom Banquet
Full Heritage Hall (18,360 sq. ft.) 2,000 576 1,000
Half Heritage Hall (9,180 sq. ft.) 1,000 288 448
Fourth Heritage Hall (4,590 sq. ft.) 400 120 224
Rooms 200 or 201 (880 sq. ft. ea) 90 48 48
Rooms 202A or 203A (525 sq. ft. ea.) 48 24 24
Rooms 202AB or 203AB (1050 sq. ft. ea.) 96 48 48
Rooms 202ABC or 203ABC (1575 sq. ft. ea.) 144 72 80
Rooms 200 & 202ABC combined (2,455 sq. ft.) 192 96 120
VIP Room (750 sq. ft.) 50 24 24
Arena (21,112 sq. ft. of floor space) Full Capacity: 3,310 700 1,360
7,883
Rooms 101A, B, C or D (480 sq. ft. ea.) 40 16 24
Rooms 101AB or 101CD (960 sq. ft. ea.) 80 32 40
Room 101ABC (1440 sq. ft.) 120 48 64
Room 101ABCD (1920 sq. ft.) 160 64 80
Classroom: Seats on one side of rectangular tables. (4 per table)
Banquet: Round tables seating 8 persons each.
* - If buffet lines are required, seating is reduced proportionately.
(Note: Capacity figures include head tabl e and/or riser for speaker and lectern.)
Rev. 5/07