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HomeMy WebLinkAbout07/01/1997, 2 - PARKS AND RECREATION FEE ADJUSTMENT council u Juu 1 1997 acEnaa Rep= � C ITY OF SAN LU IS O B I S P O FROM: Paul LeSage, Director of Parks and Recreation ared by: Kathy Koop, Recreation Manager SUBJECT: PARKS AND RECREATION FEE ADJUSTMENT CAO RECOMMENDATION Adopt a resolution retaining the Children's Services hourly program fee at the 1996-97 level of $2.30 per hour and reducing the daytime use fees at the Recreation Center and Meadow Park to be equal to Library Conference Room use fees for 1997-98. ($16.95/3 hours by Non-Profit groups and $26.50/3 hours for commercial groups) DISCUSSION Background In March 1995, Council adopted a comprehensive fee study by David M. Griffith and Associates (DMG). At that time, a Parks and Recreation Services Fee Schedule was adopted as a result of this study. The fee schedule phased percentage increases over 3 years beginning with the 1995-96 fiscal year. In addition, an annual percentage increase for cost of living (COLA) was included. Staff bases revenue estimations for each fiscal year on the recommended fee increases. While most program areas have met revenue targets, Children's Services and Indoor Facilities are short of obtaining the 1996-97 estimated revenues. Staff believes that the shortfall in revenues can be rectified in each of these areas by implementing the following changes: • CHILDREN'S SERVICES: Hold hourly Sun and Fun Fee at the 1996-97 fee • INDOOR FACILITIES: Use the same fees for all daytime indoor facility use CHILDREN'S SERVICES Since the 10% fee increase implemented in the 1996-97 fiscal year the area of Children's Services has experienced a shortfall in revenue and an increased request for scholarship subsidy. At the end of May 1997, with 92% of the fiscal year complete, the Children's Services program area had achieved 83%, $280,955 of it's $336,600 revenue target. Participants would pay $2.55/hour for the Sun & Fun program during the 1997-98 fiscal year. INDOOR FACILITES Requests for use have declined for the meeting rooms at the Recreation Center and Meadow Park. Staff believes it is because the rates for the use of the Library Conference Room during daytime hours are significantly less than rates at the Recreation Center and Meadow Park. 1997-98 FACILITY USE RATES Type of Use Meadow Park Recreation Center Library Rooms A, B, C, D Conference Room Non-Profit $79.50/3 hrs $71.40/3 hrs $16.95/3 hrs Commercial $158.85/3 hrs $$142.95/3 hrs $26.50/3 hrs These facility fees for the Recreation Center and Meadow Park translate into a 57% higher rate than those of the Library. It seems as if this fee schedule is undercutting facilities housed within.the same department that require the same amount of staff time to reserve, staff, open, and close. FISCAL IMPACT The program areas of Children's Services and Indoor Facilities did not obtain revenue targets for the 1996-97 fiscal year. Staff believes that participation will decline with an hourly fee increase. Staff feels that by advertising that the fee has been held at 1996-97 rates participation will increase which will translate into a corresponding increase in revenue. Additionally, every family receiving CDBG scholarships has provided partial pay, a "co-payment," or have been responsible for paying a percentage of the child's participation in the program. Holding the hourly rate would enable these families to continue to pay a partial fee or an increased percentage for their child's participation in the program. Fees in the indoor facilities and Recreation Center would have a corresponding revenue increase when the fees are competitive with those of the Library. The revenue target for Children's Services in the 1997-98 budget is $325,000. The Indoor Facility target, which includes Meadow Park and the Recreation Center, is $23,000. Staff believes that these targets are obtainable, provided the fees are adjusted in the recommended manner. ATTACHMENT 1. Resolution RESOLUTION NO. (1997 Series) A RESOLUTION OF THE CITY COUNCIL OF CITY OF SAN LUIS OBISPO ADOPTING FEE ADJUSTMENTS IN THE AREAS OF CHILDREN'S SERVICES AND INDOOR FACILITY FEES WHEREAS, the City's municipal code authorizes establishing various fees for the delivery of municipal services; and WHEREAS, it is the policy of the City of. San Luis Obispo to adopt an annual Fees for Services Schedule; and WHEREAS, it is the policy of the City of San Luis Obispo that any change to this adopted Fees for Services Schedule be approved by Council; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that: SECTION 1. The hourly rate for the Children's Services program of Sun & Fun shall be held at the 1996-97 level of$2.30 an hour per child. SECTION 2. Rates for indoor use of Meadow Park, the Recreation Center Meeting Rooms A through D, and the Library Conference shall be of $16.95/3 hours for use by non-profit groups and $26.50/3 hours for commercial groups. On motion of , seconded by , and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was passed and adopted this _day of , 1997. Mayor Allen Settle ATTEST: Bonnie Gawf, City Clerk APPROVED AS TO FORM: " �3• OU--naM o Jeff'rey Jorgensen, City Attorney ATTACHMENT 1