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SUBJECT: 2016 DOWNTOWN PATIO PROGRAM FEE DISCUSSION <br />DATE: DECEMBER 7, 2015 <br />PAGE 3 OF 3 <br />Demand <br />Most if not all restaurants will request patios again for 2016. Moxie Bread Company is <br />interested in participating in the program but there are not idle patios available. A <br />$40,000 CIP for procuring 24 feet of additional patio was not approved in the 2016 <br />budget. <br />Increasing the rental fee may affect participation 2016, as restaurants will need to <br />reevaluate whether the benefits from additional table tops still outweigh the additional <br />costs to rent the patios. Each restaurant utilizes the patios differently, so decisions may <br />vary. <br />Fee Options <br />To guide the discussion, below are a few options to determine various fee amounts in <br />relation to the percentage of the replacement reserve costs. <br />Operation Exp. Replacement Exp Total Rental Fee per Patio <br />$ 8,700 $ 31,831 $ 40,531 $ 2,133 <br />Remain Same 100% 2.5% $ 9,496 $ 500 <br />Option A 100% 10% $ 11,883 $ 625 <br />Option B 100% 25% $ 16,658 $ 877 <br />Option C 100% 50% $ 24,616 $ 1,296 <br />Option D 100% 75% $ 32,573 $ 1,714 <br />Option E 100% 100% $ 40,531 $ 2,133 <br />RECOMMENDATION: <br />Staff would like BRaD input regarding the downtown patio rental rates. An increase is <br />justified because program costs (related to replacement costs) have increased <br />significantly since 2013. However, the 2013 rental discussion resulted in fees covering <br />only the operating costs, thus being less than needed to make the program self - <br />sufficient. <br />BRAD COMMITTEE <br />7 <br />