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. e Center Rental Rate Increase, pg. 2 1. Historical Overview In 1990 the City established rental rates for renting the recreation centers for special events. The rental rates have remained unchanged for the past 10 years. The initial rates charged to citizens was set fairly low to accommodate those who needed a place to host a family gathering, a wedding reception, or other event. Usage of the centers has been primarily a one-time event by residents of La Porte. Currently, and for the past several years there has been only one commercial venture that rents our centers on a regular basis (Bill Gray rents two centers regularly for Karate Classes). Our present rates for center operation are: . $5.00 per hour, two-hour minimum rental, $100 refundable deposits for La Porte non-profit organizations. · $15.00 per hour, two hour minimum rental, $100 refundable deposit for all other rentals. . We provide security service by contrad with the La Porte Police Officers Association (cost of security is paid diredly to the LPPOA by the Lessee). 2. Present Status The current rental rates do not generate enough revenue to pay for the cost of operation of the centers. Rising salaries and the use of overtime to assure that a caretaker is on-site to meet our Lessee's immediate needs and to proted the interests of the City has increased the cost of operation for the rental process. The City's approximate cost of operation for center rentals at $10 per hour with a caretaker and $18.14 per hour at overtime. These costs make an assumption of $3 per hour for cost of electricity, water, tissue paper, and other incidental costs of operation. 3. Survey of Comparable Centers in the Area Staff has reviewed the operation of various cities in the area for their rental prices of comparable facilities. The assumption was made that facilities in the range of 150 to 200 people were comparable to our capacities in size and function. Staff obtained rental rates from Baytown, Deer Park, Houston, League City, Pasadena, Seabrook, S. Houston, and Webster. There is a disparity in how centers are rented by various municipalities in the area. Some use resident non-resident rates, some use commercial, non- commercial rates, and La Porte uses Profit, Non-Profit rates. When compared to other rates, all other things being equal, It is evident that La Porte has the lowest rates for comparable rental facilities in the area. The average rental rate per hour is $26.42 for resident rate and $33.17 for non-resident rate for all the cities surveyed (except for Webster which has no comparable center for rent), compared to La Porte's $5 non-profit and $15 for profit rates.