sr-030309-1dc7®
c;cYOr City Council Report
Santa rlonica
City Council Meeting: March 3, 2009
Agenda Item: ' ~D
To: Mayor and City Council
From: Barbara Stinchfield, Director, Community & Cultural Services
Subject: Fee Resolution for Parking, Community Use, and Private Rentals at the
Annenberg Community Beach House
Recommended Action
Staff recommends that City Council approve the attached Fee Resolution establishing
user fees or charges for parking, community use, and private facility rentals at the
Annenberg Community Beach House.
Executive Summary
This Fee Resolution establishes the user fees or charges for parking, community use,
and facility rentals at the Annenberg Community Beach House. Community use fees,
including parking rates, are based on fees for comparable City facilities and private
rental and use charges are based on market rates for similar activities and services in
the region. The proposed fees and charges were used to estimate revenues in the FY
08/09 Budget and FY 09/10 Budget Plan for Beach House operations.
Background
The Re-Use Plan for 415 Pacific Coast Highway, now known as the Annenberg
Community Beach House at Santa Monica State Beach ("Beach House"), was approved
by the Council in 1998. The plan identified the community's goals for redevelopment of
the site and recommended a project financing scheme. The scheme established
several revenue sources to primarily offset the site's annual operating costs. The
identified revenue sources included: (1) parking, (2) community use fees, and (3) private
facility rentals.
On February 28, 2006, the Council reviewed the initial financial projections and potential
operating subsidies. The current proforma and projected operating subsidy was
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approved by Council in the FY 2008-2009 budget. The Draft Operating Plan including
proposed fees was presented to Council on December 2, 2008.
Discussion
The fees recommended in this resolution were established based on balancing the need
to generate revenue to partially offset the cost of Beach House operations with the goal
of providing an open, affordable facility for a diverse group of users.
Parking Rates
Proposed fees for parking (up to $10 per day) are commensurate with Council-approved
rates for the Central Beach Parking Lots and the Pier Deck Lot, the highest demand lots
on Santa Monica State Beach. To provide affordable access, staff recommends the
establishment of both hourly and daily rates for the lots.
Santa Monica Municipal Code Section 3.04.030 authorizes the City to issue resident
parking permits for beach parking lots. Council may establish the times and lots
available under the permit system. Currently, these permits are available for all lots and
historically seven permits were issued for the Beach House lots (415 and 445 Pacific
Coast Highway). To maximize public access to the Beach House, staff recommends
that use of residential parking permits be prohibited in the Beach House parking lots at
least until public demand can be fully evaluated. Residents who have historically
parked in these lots will be able to buy permits for the other beach lots. Residents may
purchase daily parking permits for use in the Beach House parking lots by their guests
subject to availability.
Recreation and Community Programs and Classes
All fees for programs and classes offered by the City or City contracted instructors will
be set to cover the direct costs of providing the services at the Beach House. Specific
fees for recreational and community classes and programs offered by City contractors
will be established through a public bidding process consistent with current practice.
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Financial assistance (partial reduction. of fees) is available to qualifying Santa Monica
resident youth from low and moderate-income families. Qualified youth may register for
recreational and community classes and programs at a reduced rate based on a sliding
scale.
Facility Rental and Use Charges
Due to the current economic climate, staff recommends that the Director of Community
and Cultural Services be granted the authority to fix Facility Rental Charges for private
events and commercial filming in accordance with comparable market rates. By
remaining sensitive to market fluctuations, the City will ensure both maximum use of the
facilities and maximum revenue returns to the City. To provide opportunities for non-
profit organizations and government agencies, staff recommends offering a discount of
up to 50% to a limited number of non-profit and governmental organizations each
month.
Commission Action
The proposed parking and community use fees and charges were presented to the
Recreation and Parks Commission over a series of meetings detailing the proposed
Operations Plan for the Beach House. The Commission unanimously supported the
proposed Operations Plan and proposed fees and charges at their November 2008
meeting.
Public Outreach
The Beach House Operations Plan, including proposed fees and charges, has been
shared with the public via a public workshop and presentations to Santa Monica
neighborhood associations, the Santa Monica Recreation and Parks Commission, the
Pier Restoration Corporation, and the Santa Monica Sustainability Taskforce. In
addition, all Beach House neighbors received a letter in October 2008 notifying them of
the availability of the draft Operations Plan and of opportunities for public input. Based
on community feedback and concerns regarding affordability, the initially proposed
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Reservation Fee has been eliminated and a "Dollar Days" program for pool access has
been added. On designated "Dollar Days", the Director may authorize temporarily or
seasonally discounted fees to the public without preference or bias to any user group.
Financial Impacts & Budget Actions
Operation of the Beach House is supported by the City's Beach Fund. The projected
annual subsidy required from the Beach Fund in the FY 2009-10 Budget Plan is
approximately $1.3 million, which includes an annualized .operating budget of $3.3
million and projected revenues of $2 million. Revenue projections are based in part on
the fees included in this Resolution, including:
Parking $ 306,477
Community Use Fees $ 126,600
Rec & Community Classes $ 94,700
Private Facility Rentals $ 1,306,249
Other Revenues $ 150,537
Total $ 1,984,563
As indicated above, private facility rentals represent a significant source of revenue for
Beach House operations. Given the economic downturn, staff continues to analyze the
impact on revenue projections and the need to set fees in this area based on a very
competitive market.
Prepared by: Callie Hurd, Open Space Manager
Approved:
Forwarded to Council:
,v
~G-~ ~,.
Barbara Stinchfield P. a ont EN
Director, Community and Cultural C Manager
Services
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Reference Resolution No.
10383 (CCS).