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HomeMy WebLinkAbout28-25 Amending the Historic Preservation Ticket Surcharge for the Morris Performing Arts Center 301 S St.Louis Blvd. DAMES MUELLER CITY OF SOUTH BEND South Bend,IN 46617 Mayor VENUES PA1q4 RS & ARTS O:574.245.6053 F:574.245.6053 JORDAN V.GATHERS sbvpa.org I s,. L lv. ,n, ,r April 9, 2025 Filed in Clerk's Office Councilman Canneth Lee 4th Floor, County—City Building Bianca Tirado South Bend, IN 46601 City Clerk, South Bend, IN RE: Federal Trade Commission Ruling Morris Performing Arts Center Historic Preservation Fee Adjustment Dear President Councilman Lee: Enclosed is an Ordinance amending the Historic Preservation Ticket Surcharge for the Morris Performing Arts Center. The Morris Performing Arts Center is expected to update its ticketing fee structure in response to new Federal Trade Commission regulations requiring full disclosure of all fees at the time of ticket purchase. Currently, a $3.50 Historic Preservation/Facility Fee is charged per ticket, and a$5.00 Order Fee is charged per transaction. However, the Morris's ticketing vendor, E-Tix,is unable to incorporate the per-transaction Order Fee into the total ticket price as required by the new regulations beginning May 12, 2025. To ensure compliance while maintaining necessary revenue for the Morris, the proposed ordinance eliminates the$5.00 Order Fee and instead increases the per-ticket Historic Preservation/Facility Fee by$1.25, bringing it to $4.75. This change allows all costs to be clearly disclosed per ticket, ensuring transparency and aligning with federal guidelines. The full ordinance is attached for your reference. If you have any questions, please feel free to contact our office. Sincerely, Dezha Moore General Manager of Venues, VPA CC: Jordan Gathers, VPA Executive Director EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT Filed in Clerk's Office BILL NO. 28-25 Bianca Tirado City Clerk, South Bend, IN ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING THE HISTORIC PRESERVATION TICKET SURCHARGE FOR THE MORRIS PERFORMING ARTS CENTER STATEMENT OF PURPOSE AND INTENT The City of South Bend's("City")Morris Performing Arts Center(the"Morris")currently charges a Historic Preservation/Facility Fee of Three Dollars and Fifty Cents ($3.50)that is added onto the face value of each ticket sold at the Morris. The Morris also charges an Order Fee on each transaction of Five Dollars ($5.00), which represents an average cost of extra materials and processes for all ticket purchases, such as shipping, ticket stock, printing costs, stamps, and intangible operation costs. Recent regulations issued by the Federal Trade Commission governing the disclosure of fees at the time of ticket purchase have changed the way the City presents Morris ticket prices through its ticketing vendor to prospective purchasers. The City's ticketing vendor is not able to include the Order Fee into the Total Price, as required by the new regulations on or before May 12, 2025, as it is charged per transaction rather than per ticket. It remains unclear whether a disclaimer regarding the transaction fee on the City's ticketing website would allow the City to be in full compliance with the new regulations, as best practices are still developing. The most clear way to comply with the regulations is to include all fees per ticket in the Total Price. The City and Morris recognize the Order Fee is an important part of the revenue of the Morris, and desire to ensure that this revenue is able to be captured at the time of purchase while remaining in compliance with federal regulations. The proposed ordinance would shift the transaction fee into a small increase, in the amount of One Dollar and Twenty-Five Cents ($1.25), in the per ticket Historic Preservation/Facility Fee and eliminate the Order Fee.This increase reflects the average cost of extra materials and processes for all ticket purchases, such as shipping, ticket stock, printing costs, stamps, and intangible operation costs so that it may properly be disclosed at the time of purchase. This ordinance is in the best interest of the City and its residents. NOW,THEREFORE,BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA as follows: SECTION I. The Historic Preservation/Facility ticket surcharge is hereby increased from Three Dollars and Fifty Cents ($3.50) to Four Dollars and Seventy-Five Cents ($4.75) and the 1 Order Fee is hereby eliminated. There shall be no change to the distribution of the first Three Dollars and Fifty Cents of this surcharge. The additional Dollar Twenty-Five Cents ($1.25) shall be distributed in the same manner as funds from the prior Order Fee. SECTION II. This Ordinance shall be in full force and effect after adoption by the Common Council, approval by the Mayor, and any publication required by law. Canneth Lee, Council President South Bend Common Council Attest: Bianca L. Tirado, City Clerk Office of the City Clerk Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City of South Bend, Indiana on the day of , 2025, at _ o'clock .m. Bianca L. Tirado, City Clerk Office of the City Clerk Approved and signed by me on the day of , 2025, at o'clock .m. James Mueller, Mayor City of South Bend, Indiana 2