HomeMy WebLinkAboutMinutes - August 8, 2006 SSCITY OF LODI
INFORMAL INFORMATIONAL MEETING
"SHIRTSLEEVE" SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, AUGUST 8, 2006
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday,
August 8, 2006, commencing at 7:00 a.m.
A. ROLL CALL
Present: Council Members — Beckman (arrived at 7:01 a.m.), Hansen, Johnson, Mounce,
and Mayor Hitchcock
Absent: Council Members — None
Also Present: City Manager King, City Attorney Schwabauer, and Interim City Clerk Perrin
B. TOPIC(S)
B-1 "Presentation regarding issues associated with long-term rental of Hutchins Street Square
facilities by local church"
City Manager King reported that the issue associated with this rental is whether or not
Hutchins Street Square, which is a taxpayer subsidized facility, takes on a long-term
tenant who would, on a regular basis, use a majority of the facility for a particular day and
time to the exclusion of other events and activities. This request does not address the
religious aspect of the use, but addresses the issue of an on-going tenant, which would
offer a revenue stream to the City.
Steve Baker, Interim Community Development Director, reported that in March 2006 Council
decreased the Sunday through Wednesday fees in an effort to bring more activities to the
Square on under-utilized days, after which representatives from Heartland Community
Church expressed an interest in holding its services there. The revenue would amount to
$50,000 a year, and the church would utilize fie facility on approximately 50 weekends.
This rental would conflict with a small number of other uses, such as the Crane Festival,
which typically utilizes the entire facility, and various productions by Troup Cabana,
St. Mary's, and the Community Concert Association, which involve stage set ups. The
church would be required to move its music forward and work around the sets on these
conflicting days. The desire is to increase the amount of drama productions, some of
which may occur on Sunday afternoons or evenings, that could result in a conflict of uses.
Another issue to consider is staffing, as it would be cost prohibitive to supply theater
technicians for this on-going rental, and staff is proposing to provide a simple mechanism
for church members b turn on and off the lights and manage its set up. The Square
typically does not have janitorial staffing on Sundays, and there would be additional charges
for weekend clean up. Even with an increase in drama and concert events, Sunday would
most likely continue to be a low utilization rental day and there would be few conflicts with
the theater. Mr. Baker pointed out that Kirst and Crete halls, which are rented the most,
would not be affected by this proposal, and the church would be allowed to use the Rotunda
on days that those rooms are not in use. Heartland Church is requesting a three-year
agreement, and staff is recommending a one-year agreement with the option to renew.
Council Member Hansen expressed concern that this could be viewed as a partnership
between the City and Heartland Church and that it could conflict with other activities at the
facility. Hutchins Street Square is a community facility and he did not want to see
community events precluded from utilizing the facility because of this long-term contract.
Pastor Chris Chavez, representing Heartland Community Church, explained that the church
is in the process of raising funds to purchase a property and the hope is to relocate to a
new facility within the next three years. The Square %ould serve as a central location for
church delegates to attend services, which would also be open to the community at large.
The commitment would be for three years, and he felt that the alternative of a one-year
lease with two options to renew would be acceptable.
Continued August 8, 2006
In response to Council Member Hansen, Pastor Chavez replied that the church intends to
work with the Square and greatly supports bringing in further community events. Church
representatives have discussed the possibility of potential conflicts and have a number of
options to address the situation.
In answer to Council Member Hansen, Mr. Baker stated that the Square would incur greater
expenses for janitorial services, and he is considering utilizing part-time staff to clean on
the weekends and to help staff Saturday events. The proposal for the church to utilize the
Square has not been formally presented to the Hutchins Street Square Foundation, and he
anticipated that it would go before the board at its next meeting. Mr. Hansen stated that he
would like to receive input from the board when this matter returns to Council.
Mayor Hitchcock questioned if the $50,000 was net revenue (i.e. revenue less expenses for
janitorial costs, security guards, electricity, etc.), to which Mr. Baker responded that the
cost for security guards would be a wash and that there would be additional costs for
janitorial, as well as electricity to control the temperature of the building over the weekend.
Mr. Baker stated that he would provide an estimate of the costs.
In response to Council Member Beckman, Mr. Baker stated that there would most likely be
two conflicts a year for Sunday use of the theater. Mr. Beckman suggested including
language in the contract that Heartland agree to give up the theater one to two times a year
and that the City provide advance notice as to when those conflicts would occur.
Mr. Beckman added that he is a member of Heartland Community Church.
In response to Council Member Mounce, Pastor Chavez stated that the church would utilize
the Square on Sundays for four to five hours, which includes set up and clean up.
In response to Mayor Pro Tempore Johnson, Pastor Chavez replied that the church
congregation includes 200 to 300 adults, and the hope is that the larger facility at the
Square would encourage growth, which would transition into the new permanent facility.
The lease on the current church building concludes at the end of this year and includes an
option to renew for two and a half years. The structure is over 9,000 square feet and
accommodates church services, youth activities, and offices. The facility will continue to
be maintained, along with the lease at the Square, in order to conduct the many weekday
activities and classes.
Mayor Pro Tempore Johnson also expressed an interest in receiving input on this proposal
from the Hutchins Street Square Foundation.
Mayor Hitchcock requested further information on the actual revenue once the costs
associates with wear and tear of the building, heating, air conditioning, lighting, and
janitorial services are factored into the amount. She further questioned if the City has an
obligation to put this proposal out to bid and whether there are others who would like to
utilize the facility in this manner, as this has the potential to exclude a number of events
that are consistent with a performing arts theater.
Mr. Baker stated that this proposal is viewed as a rental contract and that, had this been a
month-to-month contract, the church would have been allowed to utilize the facility. It is the
long-term nature of the contract that is at issue and is the reason it has been brought
forward. He added that no other churches have expressed an interest in using the facility
for Sunday services; although, some have used the Square on weeknights for special
events or services.
Ken Levy, representative of Heartland Community Church, stated that there are few
churches that would have the size and resources to do what they are doing. In regard to
potential conflicts, he stated that Heartland Church would be accommodating and he hoped
that the City would give as much warning as possible. Heartland may sublease a portion of
its current facility to another church for a reduced rate; however, it would serve as an
alternative for Sunday morning services if there is a conflict at the Square.
2
Continued August 8, 2006
Council Member Hansen expressed support for a one-year contract with the option to renew
versus a three-year contract and questioned what type of language addressing termination
notice would be built into the contract. City Attorney Schwabauer responded that the
contract would be written according to the specifications set forth by Council (i.e. 30 -day
notice, one-year notice, etc.).
Council Member Mounce requested that the contract include a provision that the City give
advance notice to the church if there is conflict with another event.
In response to Mayor Hitchcock, Bob Smith, representing Heartland Community Church,
stated that, in the event of a conflict, the church would be very flexible. If it must work
around sets on the stage, it would reduce the band set up, which would also reduce the
time needed to set up and clean up for the service. The church has outgrown its current
facility and would like to settle at a permanent location; the Square offers a short-term
solution for the church, as well as a revenue stream to the City. He viewed this as a win-
win solution for both organizations. The goal of the church is to locate its new facility
within, or in very close proximity to, Lodi.
Mr. Schwabauer, speaking as a member of Lodi House, pointed out that Heartland
Community Church donates a considerable amount of money to its organization, as well as
to other charitable organizations in the community.
PUBLIC COMMENTS:
00 Myrna Wetzel added that the church was also instrumental in helping Katrina victims.
C. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
None.
D. ADJOURNMENT
No action was taken by the City Council. The meeting was adjourned at 7:50 a.m.
ATTEST:
Jennifer M. Perrin
Interim City Clerk
a�AGENDA ITEM 4; _
CITY oF LODI
COUNCIL COMMUNICATION
ThA
AGENDA TITLE: Presentation Regarding Issues Associated with Long -Term Rental of Hutchins
Street Square Facilities by Local Church (COM)
MEETING DATE- August 8, 2006 Shirtsleeve Meeting
PREPARED BY. Steve Baker, interim Community Center Director
RECOMMENDED ACTION: That the City Council hear a presentation associated with long-term
rental of Hutchins Street Square facilities by local church.
BACKGROUND INFORMATION: At the March 1, 2006 City Council meeting, the Council adopted
lower fees for rooms. at Hutchins Street Square in an effort to
increase utilization of these rooms. These lower fees were for
Sunday through Wednesday.
DISCUSSION -
Heartland Community Church approached staff regarding renting the Theatre for church services as well
as other rooms for Sunday school, childcare, etc on Sundays. The other main rental halls — Kirst.and
Crete — would still be available for rentals to others on Sundays. The Church would like a three year
agreement.
Because this would bring in additional revenues (potentially over $50,000 in annual revenues) on a day
that is underutilized, staff has been working to try to work out a rental agreement with the Church to bring
to Council. The process has been complicated, however, by the details of working out a long term
agreement for one day a week and coordinating with other current uses and possible future uses at the
Square, Changes in normal operations also would need to occur. Examples include:
® The annual Crane Festival uses most of the rooms at the Square. Even though the theatre itself
is not one of the rooms, the Crane Festival event would probably preclude church use on the first
weekend of November.
* Several children's theater events (St. Mary's, Troupe Cabana, Lodi Theater for Youth) have sets
on the stage that would need to be left on the stage. 'The Church has indicated that they will
simply work around these sets and adjust their services accordingly.
* St. Mary's has an annual drama event each year, which includes matinee shows on Sundays.
There could be a conflict between these matinees and the church services,
* Lodi Community Band and the Lodi Community Concert Association sometimes have Sunday
night events (including installation of the band shelf). The Church has indicated that they will
adjust their services accordingly,
* Having theater technicians scheduled for Sundays would be cost prohibitive for church services.
Staff and the Church are working to allow "one button" lighting and the Church is planning to bring
in its own sound equipment (and store some of it on-site)
APPROVED: - )
Blah' ;g City �Man�ager
* Having theater technicians scheduled for Sundays would be cost prohibitive for church services.
Staff and the Church are working to allow "one button" lighting and the Church is planning to bring
in its own sound equipment (and store some of it on-site)
* The current janitorial contract charges relatively high amounts for additional cleanings on
weekends, The contract either would need to be amended or possibly part-time staff brought in to
do janitorial work in addition to room take -downs and set-ups.
* In the long. run, staff would like to bring in more events, and in particular drama events, to the
theatre, which could increase the potential conflicts. Attempting to speculate what these potential
conflicts might be has been challenging to boil down in a contract.
Overall, there has been a willingness on the part of the Church to accommodate other uses.
Note also that the Church a s a religious organization has the right to rent any room at the Square on the
same terms and conditions as any other organization (in this case a non-profit). Any other church may
also ask for the same consideration.
The Council may wish to discuss this use and how it relates to the overall mission as well as revenues of
the Square,
FISCAL IMPACT: A rental agreement could result in additional revenues to. the
Square estimated to be over $50,000 per year.
Interim Community Center Director
ad" ll"tie. s
MO..re:drama:eveuU
cooperation