Board presses staff to tighten facilities rental rules after staff report shows large fee waivers
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Summary
Staff reported that waivers, inconsistent processing and an outdated fee schedule have led to large foregone revenues; board asked staff to draft procedures, require nonprofit proof and insurance naming the district as additional insured, and return with an automated system and a proposed phased implementation.
District staff told the board on Nov. 6 that the school system’s facilities-use procedures and fee schedule have not kept pace with practice and that many fee waivers occur at the school level without consistent documentation.
Ms. Usher and facilities staff explained Board Policy 75-10 governs use of district facilities and that the fee schedule has not been updated since 2010. Staff said that when events are recorded as “school-oriented” or “nonprofit,” fees—often including custodial, utility, and security charges—are being waived in many cases, frequently without documented authorization. In a three-and-a-half-month sample period staff reported collecting $23,658 in rental fees while waiving $252,920 in fees; staff estimated waived fees could total multiple millions across a longer horizon if current practice continues.
Staff recommended a set of corrective steps: update board policy language to align with the approved fee schedule; create written procedures that require applicants to submit proof of nonprofit status when claimed, current insurance naming Marion County Public Schools as additional insured, and any law-enforcement or security agreements; assign a clear designee (staff recommended area superintendents with superintendent oversight) to approve fee waivers; and procure an automated facilities-use system to enforce requirements consistently. Staff proposed a phased implementation with a grace period (target February) and asked the board to honor existing contracts during the transition.
Board members expressed concern about lost revenues and the operating costs the district is incurring when events use supplies, custodial time and security without paying. The board asked staff to return with recommended updated fees and a suggested percentage share for schools if revenue is collected (staff noted other districts return a substantial portion—e.g., 60–65%—to school sites in some models). Staff will also present a recommendation about the minimum security requirements for events; law-enforcement coverage requirements will be clarified in procedure (current fee schedule requires law enforcement for 300+ participants).