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HomeMy WebLinkAboutAdmin Order 57-25-01-F -- Farmers Market Pavilion and Plaza FeesAdministrative Order – Page 1 of 1 ADMINISTRATIVE ORDER NO. 57-25-01-F of the City Manager of the City of Eugene SETTING FARMERS MARKET PAVILION AND PLAZA FEES AND SUPERSEDING THE FEE SCHEDULE ADOPTED BY ADMINISTRATIVE ORDER NO. 57-24-02-F. The City Manager of the City of Eugene finds as follows: A. Section 2.020 of the Eugene Code, 1971, authorizes the City Manager to determine and set fees and charges to be imposed by the City for services, goods, use of municipal property, and licenses and permits. B. Pursuant to the above authority, on June 14, 2024, I issued Administrative Order No. 57-24-02-F establishing the Farmers Market Pavilion and Plaza Fee Schedule (“the Fee Schedule”). C. On August 27, 2025, I issued Administrative Order No. 57-25-01, ordering that notice be given of the opportunity to submit written comments on my proposal to set new Farmers Market Pavilion and Plaza fees. The Notice specified that comments on the proposed amendments would be received for 15 days from September 3, 2025, the publishing and posting date of the Notice. No comments were received within the time or in the manner described in the Notice. D. Based on my investigation pursuant to the provisions of Section 2.020 of the Eugene Code, 1971, I find that the fees should be set as proposed. (See Exhibit B to this Order) E. The unamended Farmers Market Pavilion and Plaza fees adopted by Administrative Order No. 57-24-02-F are incorporated into the Fee Schedule attached as Exhibit A to this Order. On the basis of these findings, I order that: 1. The Farmers Market Pavilion and Plaza Fee Schedule attached as Exhibit A to this Order is the schedule of fees to be charged for the described services as of the effective date of this Order. 2. The Fee Schedule attached to Administrative Order No. 57-24-02-F is superseded by the Farmers Market Fee Schedule attached as Exhibit A to this Order, as of the effective date of this Order. Dated [and effective] this 28th day of September, 2025. JB JB Sarah Medary City Manager Exhibit A to Administrative Order No. 57-25-01-F Page 1 of 2 FARMERS MARKET PAVILION AND PLAZA FEE SCHEDULE (Effective September 28, 2025) Definitions of Users City Produced or Co-Produced or City-Sponsored An activity carried out by a city employee in the performance of assigned duties, an activity with aligned mission and goals funded by a city team or an activity authorized by a Division Manager and relevant management team, City Manager, or city council, such as Halloween Downtown, First Friday ArtWalk, or Downtown Program Fund events Non-Commercial Activities & events free of charge for the public. Events must have three or fewer commercial vendors, including food carts. Commercial Any activity related to or connected with trade, commerce or fundraising involving the receipt of money or property, such as, but not limited to: advertising, displaying, distributing, selling, taking orders or offering to sell or take orders for goods or services; fundraising activities; activities, events, and performances for which admission is charged; activities related to construction or demolition on abutting private premises. Private Event Any activity that necessitates a complete closing off of the space to the public, for private occasions or events that are invitation-only. FEE NEGOTIATIONS. The Executive Director of the Library, Recreation and Cultural Services Department or the Director’s designee may elect to negotiate rates lower than those listed in this fee schedule if it is deemed in the best interest of the City and facilitates the offering of cultural events and programs. This determination will be made in accordance with industry standards and fiscal accountability. Pavilion and Plaza Rental Rates Types of Uses City Produced or Co-Produced Non- Commercial Commercial Private Rental Rate (Fri-Sun) 8 hrs $500 $1250 $2500 $2990 Rental Rate (Fri-Sun) 4 hrs $300 $850 $1675 $1800 Rental Rate (M - Th) 8 hrs $250 $575 $1125 $1800 Rental Rate (M - Th) 4 hrs $100 $225 $425 $1000 Youth Education Discount 48% of rate 48% of rate 48% of rate N/A Additional Hours N/A $100.00/hour $100.00/hour $100.00/hour Plaza-Only Rental N/A N/A $150.00 $550.00 Parking Lot addition N/A $200.00 $200.00 $200.00 Requirements Agreement N/A Required. Required. Required. Exhibit A to Administrative Order No. 57-25-01-F Page 2 of 2 Indemnification N/A Required. Required. Required. Insurance Required. Required. Required. Required. Cleaning Deposit N/A $100.00 $100.00 $100.00 Booking Deposit 50% of rate 50% of rate 50% of rate Other Cancellation fee (within 30 days of the event) N/A Deposit Forfeiture Deposit Forfeiture Deposit Forfeiture Exhibit B to Administrative Order No. 57-25-01-F Findings – Page 1 of 3 City Manager’s Findings Proposed Downtown Activity Zone and Farmers Market Pavilion & Plaza Fee Schedule Pursuant to Section 2.020(2) of the Eugene Code, 1971, the City Manager has considered the following factors in determining the proposed Private Commerce on Public Property Fee Schedule Amendments: (a) Applicable policies, enactments, and directives of the Council. Findings: Established fees for the Farmers Market Pavilion have been effective since July 2024. An update to these fees is necessary in order to stay aligned with industry standards, and to adjust rates according to the current overhead costs of the venue. (b) The amount charged by the City in the past Findings: Fee schedule will be adjusted in the following areas: • Downtown Activity Zone Fee Schedule Non Commercial Use Fri-Sun 8hr rental has been raised from $907 to $1250 Fri-Sun 4hr rental has been raised from $611 to $850 Mon-Thurs 8hr rental has been raised from $410 to $575 Mon-Thurs 4hr rental has been raised from $153 to $225 Private Use/Exclusive Use Reserved Fri-Sun 8hr rental has been lowered from $ $4,755 to $2,990 Fri-Sun 4hr rental has been lowered from $3,186 to $1,800 Mon-Thurs 8hr rental has been lowered from $2,139 to $1,800 Mon-Thurs 4hr rental has been raised from $800 to $1000 City Produced or Co-Produced Fri-Sun 8hr rental has been raised from $339 to $500 Fri-Sun 4hr rental has been raised from $228 to $300 Mon-Thurs 8hr rental has been raised from $153 to $250 Mon-Thurs 4hr rental has been raised from $59 to $100 • Private Commerce on Public Property Fee Schedule Commercial Pursuits Activity Fri-Sun 8hr rental has been raised from $1813 to $2500 Fri-Sun 4hr rental has been raised from $1216 to $1675 Mon-Thurs 8hr rental has been raised from $819 to $1125 Mon-Thurs 4hr rental has been raised from $305 to $425 Ticketing fee of 36% of rate has been removed Addition of the following clause: Fee Negotiations: The Executive Director of the Library, Recreation and Cultural Services Division or the Director’s designee may elect to negotiate rates lower than those listed in this fee schedule if it is deemed in the best interest of the City and facilitates the offering of cultural events and programs. This determination will be made in accordance with industry standards and fiscal accountability. Exhibit B to Administrative Order No. 57-25-01-F Findings – Page 2 of 3 (c) The full costs of providing the service supported by the fee. Findings: The Cultural Services Division and Farmers Market Pavilion & Plaza recognizes that costs have increased for use of the space since the initial fee schedule was developed. It has now been determined that the baseline cost is $1,109 for an 8hr period and $709 for a four hour period. This is based on estimated internal service fees (“ISF”) annual rate of 112,853 divided by 365, plus the hourly staffing overhead of $25 per hour on average for event staff, and $75 per hour for security staffing. The total expenses in FY26 are expected to be approximately $305,000 which includes personnel, materials, and supplies. We anticipate costs to increase and be offset by revenues made in accordance with the proposed fee schedule. (d) The amounts charged by other comparable providers. Findings: The proposed fees for use of the Farmers Market Pavilion & Plaza are comparable to local private venues in the area that offer similar services. Rates fall to the lower end of the spectrum for industry-standards related to both public and private sector rentals of comparable size and quality. This is intended to ensure that we remain an accessible community gathering space for the present and into the future. At the lowest pricing tier, rates are based on recovering labor and related overhead incurred. At the consecutive pricing tiers, rates are meant to generate revenue to offset costs for operation of the facility and related programming. The proposed fee schedule was developed based on four usage types: Commercial Pursuit, Private Use/Exclusive Use Reserved, Non-Commercial, and City-produced or Co-produced. Rates were determined as follows: • The usage types: Non-Commercial, Private Use/Exclusive Use Reserved, and City-produced or Co-Produced fall under the Downtown Activity Zone Fee Schedule and were determined as follows: o Non-commercial rates have been updated to incorporate the newly established overhead rate which is made up of an internal service fee day rate plus on-site staffing overhead that includes City staff and security costs during use of the building. o Private Use/Exclusive Use Reserved is determined as averaging out the rates of like-venues in the area, and aiming for a marketable below-average rate that allows us to attract clientele while covering our overhead costs of use. o City-produced or co-produced rates have risen to reflect the necessary staff time it takes to coordinate internal rentals, although are not reflective of the baseline cost of use of the building. • Commercial Pursuits Activities at the Farmers Market Pavilion fall under Private Commerce on Public Property Fee Schedule. These rates were determined by doubling the non-commercial rates, which places the fees and charges in the spectrum of like-venues in the area. This breaks down to 32 cents per sq ft. Comparable like venues range from 11 cents to $1.33 per sq ft, so this is again, under median. Exhibit B to Administrative Order No. 57-25-01-F Findings – Page 3 of 3 • Tier Determination: To remain accessible for community-sourced programs, discounts are offered that are associated with times which have lower opportunity cost. Rates within each usage type are significantly lower for activations that take place Monday through Thursday. o Rental rate for four hours M-Th is half of the rental rate of Fri-Sun 8hrs plus 34% premium, which is in line with Hult Center premiums. o Rental rate for 8 hours M-Th is half of the rental rate of Fri-Sun 4hrs plus 34% premium. o Rental Rate for four hours M-Th is a quarter of the Fri-Sun rental rate for 4hrs, with no premium. This rate is the most accessible and provides an incentive to activate in smaller windows of time on less busy days. o These discounts represent a decrease in prices due to shorter rental time periods as well as encouraging a diversity of usage types, i.e. meetings and workshops vs. large-scale events. • The addition of the Fee Negotiation Clause is referenced from similar fee agreements in the City. (e) The revenue needs of the City as determined by the adopted city budget. Findings: The Farmers Market Pavilion & Plaza incurs personnel and materials and supply expenses that are currently aligned with its portion of the City’s adopted budget. These costs will be offset by an expectation for the collection of a range of fees and charges based on usage type, as described above. The fiscal year 2025-27 adopted City budget targets revenue collections of about $80,000. The proposed fee schedule additions summarized above are estimated to have a positive impact on existing cost recovery. Factors listed above that are irrelevant or inapplicable in determining the amount of the fees, if any: N/A