Revised Room Rental Fees, Montgomery's Inn

(Kingsway-Humber)

The Corporate Services Committee recommends the adoption of the report (February 17, 1999) from the Acting Chair, Etobicoke Historical Board, embodied in the following communication (February 23, 1999) from the City Clerk:

The Etobicoke Community Council, at its meeting held on February 17, 1999, endorsed the attached report dated February 17, 1999 from the Acting Chair, Etobicoke Historical Board, recommending that the room rental rates at Montgomery's Inn be increased, and referred it to the Corporate Services Committee.

(Report dated February 17, 1999, addressed to the

Chairman and Members, Etobicoke Community Council,

from E. Jarvis, Acting Chair, Etobicoke Historical Board)

Purpose:

To bring rental fees at Montgomery's Inn more in line with operating costs.

Funding Sources, Financial Implications and Impact Statement:

Anticipated additional revenue of $2,000.00 per annum.

Recommendation:

It is recommended that the room rental rates at Montgomery's Inn be increased in accordance with the report (January11, 1999) from the Heritage Co-ordinator.

Comments and/or Discussion and/or Justification:

At its meeting of January 12, 1999, the Etobicoke Historical Board had for consideration the attached report from the Heritage Co-ordinator, regarding a proposed increase in room rental fees at Montgomery's Inn. In light of increased budget restraints and pressures, and in keeping with the Board's ongoing commitment to increase revenues, the Board unanimously endorsed the Co-ordinator's recommendation.

Conclusions:

As noted in the report, the rental fees for Montgomery's Inn were last adjusted in 1994. The Board's thrust to increase revenues by actively promoting rentals has also had an impact on operating costs. The minimal increases proposed will be more in line with fees charged at other facilities and favourably impact the Inn's operating budget.

Contact Name:

E. Buchner, Heritage Co-ordinator

(416) 394-8113.

(Report dated January 11, 1999, from the

Heritage Co-ordinator addressed to the

Etobicoke Historical Board)

Recommendation:

It is recommended that the Etobicoke Historical Board recommend the adoption by City Council of the revised room rental rates as outlined in Schedule A to this report.

The rental fees for Montgomery's Inn were last adjusted in 1994. Since that time the level of rental activity at the Inn has risen considerably becoming the second largest source of self-generated funding after the Provincial grant. This increase in rental activity is actually a benefit and an expense for the Inn. While the increased revenues have contributed significantly to the Inn's ability to maintain a wide variety of museum services for the community in the face of diminishing municipal and provincial support, the wear and tear on the fabric of the Inn has had to be reflected in the annual operating budget of the facility. The replacement of the carpeting in the Community Room in December 1997 is one example.

At the same time, other aspects of our rental activity have also come under scrutiny given the need to identify additional sources of income in the light of significant pressures on our 1999 Operating Budget. For example, the current non-profit meeting rate for an evening rental of the Community Room is $25.00 per hour with a minimum of 3 hours. This is the usual length of the rental. This rental requires the building attendant to be in the building for approximately 4.5 hours (one hour prior for room set-up and 30 minutes afterwards for clean up) minimum. Our cost is approximately $80. for staff plus overhead (lights, heat, etc.). Although this is a community service, the pending pressures on our budget lead staff to suggest raising this fee (see Schedule A attached).

The recent opening of the Lambton House as a meeting and function facility is another reason for reviewing our rental rates. The Lambton House is capable of handling an audience of up to 16 for a sit down event (22 reception style, 20 theatre style, 16 seminar style). Our Community Room is capable of handling 72 for a sit-down dinner. Hence, the cost for supplying dishes, cutlery and other supplies is considerably higher. An adjustment to our hourly rental rates and the adoption of a firm SOCAN fee schedule is recommended (see Schedule A).

A growing part of our business is the use of the Briarly Room for business meetings. Many of these meetings are held during the weekday daytime hours and thus do not represent any extra costs for the Inn (staff is always present in the office during these events). At the same time, many of these clients have suggested that our rates are very reasonable. Without wishing to scare away these clients, it is suggested that they are capable of paying a fee schedule that is more in line with the market. The Old Mill charges $125 per day for its smallest room, but charges $2.00 per cup for coffee. The Inn charges 50¢ plus tax. It is suggested that the Briarly Room rate be adjusted upwards for corporate or business meetings (see Schedule A) and that beverage rates be adjusted to an amount consistent with the market. This fee will be 75¢ per cup.

The impact of these changes is anticipated as being up to an additional $2,000.00 per annum for the Inn's rental income (provided that rental useage remains consistent).

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Schedule A

Report HER 3-99

Room Rental Rates

Montgomery's Inn

January 12, 1999

GST extra to all rates listed above. 3 hour min. for hourly rentals.

Rental of historic areas are considered on a case by case basis and only rented at the discretion of the Heritage Coordinator.

The SOCAN fee for non-dance events of $30.76 (include. GST) will apply in all appropriate rentals. SOCAN (Society of Authors, Composers and Music Publishers of Canada) collects royalties for the public performance of musical compositions under the terms of the Copyright Act. Appropriate rentals would include those where the client is bringing in personal audio equipment and music for use in an event. The Inn does not have formal dance facilities and hence the somewhat higher SOCAN fee for dance events would not apply.