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FEES AND CHARGES - REGENERATION
EXECUTIVE MEMBER FOR REGENERATION
ASSISTANT CHIEF EXECUTIVE - REGENERATION
9 JUNE 2005
PURPOSE OF THE REPORT
1The purpose of this report is to request single executive member approval for the amendments to fees and charges made by Regeneration Directorate services 2005/06.
BACKGROUND
2The services within Regeneration have a wide range of fees and charges applicable to those using those services. The service specific issues are outlined below with the listing of charges as appendices.
3This report only covers those charges for services offered; charges for retail items are not included. Charges made by external contractors at this year’s programme of events will be negotiated as part of the delivery contract according to the above principles, taking account of local issues relating to affordability.
4There are no changes proposed for the services offered by Economic Development and Museums and Galleries
Building Control
5Building Regulation Charges are governed by The Building (Local Authority Charges) Regulations 1998. These require the Council to have a “Scheme of Charges” (Appendix A) that details the charges to be levied for carrying out five specific functions under the Building Regulations. The charge has to be set at a level that recovers the Council’s costs that directly relate to the five activities. The five activities are:
a)passing or rejection of plans
b)inspection of work where plans have been deposited
c)inspection of work where a building notice has been deposited
d)consideration of plans where work reverts to the local authority and the inspection of that work.
e)consideration of an application under regulation 13a of the building regulations (regularisation function).
6The charges were last amended on 1st April 2003 and it is now proposed to increase the charges for the categories of work shown at Appendix B, Table B, the lowest increase being £9.36 and the highest £16.70. It is further proposed that an additional inspection charge of £150 be levied where the developer does not achieve certain criteria. The scheme (Appendix A) has been amended to reflect the proposed charges.
7It is proposed to raise charges in order to counter the impact of inflation, to reflect the increasingly complex nature of the regulations which have a direct impact on the time needed to check plans and to reduce the cross subsidy from commercial applications. The additional inspection charge is necessary as a consequence of new Electrical Regulations that came into force on the 1st January 2005. The intention of the regulations is that developers should use a qualified electrician who can issue an Installation Certificate to demonstrate that the work has been carried out to a reasonable standard. Where developers do not use a competent person the Council has to ensure that the work is satisfactory, this includes paying to have the installation checked by a qualified electrician, which incurs a cost. It is under these circumstances and to recover the cost to the Council that the additional inspection charge is proposed.
8The proposed date of implementation is 1 July 2005.
Cultural Services
HIRE FEES
9Town Hall Concert Venue and Middlesbrough Theatre
Hire fees at both the Town Hall and Theatre are proposed to increase in line with inflation, and are inclusive of amounts to cover service recharges in relation to technician services, stewarding, cleaning, marketing issuing of tickets and other services (e.g. provision of specialist equipment, piano tuning etc.) provided according to the negotiation of contracts with individual companies and promoters. See Appendix C.
10Community and Cultural Hire Evenings
It is proposed that one regular day in every calendar month be reserved at the Town Hall Concert Venue for the promotion BME cultural and music events in particular. It is proposed that there is no hire fee but simply a recharge for actual costs against a minimal ticket priced advised and collected by the venue management, covered in the most part by a deposit system. Basic marketing would be included with existing venue publicity and press releases.
11A further community rate is being investigated based on providing a minimum number of annual availabilities and impact on income targets.
BOOKING FEES
12Middlesbrough Theatre and, in particular, the Town Hall Concert Venue, are considerably behind the national market average in terms of the level of booking fees, including associated postal and credit card charges. There is also a discrepancy in the charges made for bookings made over the phone and in person which are not directly related to the method of payment (i.e. £1 per ticket over the phone, £1 per transaction - regardless of number of tickets - for visits in person).
It is proposed that these charges be
a)made consistent
b)brought more in line with the market rate
c)consideration is given to local affordability issues
d)consideration is given to promote key local projects and projects catering for audiences that reflect corporate priority groups (e.g. events projects for children/teenagers under 18); a flexible strategic approach also related to income targets
13However, the national industry standard practice demonstrates that fees are charged for certain commercial shows (i.e. largely the major band promotions hosted by the Town Hall) but not for theatre shows sales and classical concerts. It is recommended that the theatre and town hall should therefore be viewed differently. In setting the charge comparisons have been made with near neighbours and similar venue type as well as the cost of collection. In order to meet the demands of SAP, the Venuemaster IT ticket system and staff resources available to load the system per show/event and sell tickets, a simple 2 tier scale of fees is proposed as follows:
Category A - tickets over £10 each:£1.50 per ticket on credit card, cheques, debit card bookings, telephone or walk up
Category B – tickets under £10 each and for key promotions:£1.00 per ticket (as above).
14Other conditions:
a)charges do not apply at Middlesbrough Theatre where the charge might remain as currently i.e. £1.00 per booking postage
b)special promotions may have different arrangements, particularly in targeting priority groups
c)concession on booking fees to be arranged for those in receipt of benefits (based on evidenced, walk up payments – arrangements and processes currently being checked with Legal Services)
d)on the door sales (i.e. Town Hall, commercial bands etc.) traditionally carry a surcharge for major promoters. If we are to continue encouraging major promoters to stage commercial events/bands at the Town Hall Concert Venues it is recommended that the on the door surcharge practice continue as appropriate but that it is carefully monitored by venue management and considered in line with market rates and reasonable affordability before booking contracts are agreed.
e)there is currently national debate and lobbying regarding large booking fees and the fact that these are added on top of an advertised ticket price (industry standard for some years now). As this position has remained unclear for at least a year now, it is recommended that:
i)the proposed booking fees listed above be piloted for 2-3 months initially, so as to avoid loss of income against the market standard and
ii)the national position is monitored with advice from Legal Services and policy is amended as necessary in accordance with the any changes to legislation and national standard practice.
Libraries
15A full review of fees and charges relating to use of library facilities and services has not occurred since 2001. This has now been done using neighbouring authorities and market rates as a benchmark. A full list can be found in Appendix D.
16It is proposed that fines for overdue books are amended to a daily rate rather than weekly leading to an increase in the weekly charge but a lower rate for those returning items within two days or less of the due date. This charge is avoidable either by renewing the item or returning it within the loan period.
17A charge is made to replace library tickets. The current charge made to young people is not prohibitive nor does it fully cover the cost of replacing tickets. It is proposed to increase the charge for replacement cards in order to encourage users to remember their card and reduce the overall cost of provision.
18Media hire charges have been increased to reflect the increased cost of purchase, in particular, it is proposed that Asian videos/dvds are brought in line with standard formats.
19The proposed date of implementation is 1 August 2005.
OPTION APPRAISAL/RISK ASSESSMENT
20All increases in fees and charges could result in lower use of the service. However, experience shows that this is normally a short term effect.
FINANCIAL IMPLICATIONS
21Not increasing fees and charges can result in a budget shortfall as service costs are not recouped.
RECOMMENDATIONS
22It is recommended that the proposed amendments be approved.
BACKGROUND PAPERS
None used
AUTHOR
Chrys Mellor, Chief Librarian
(01642) 729048
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