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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 1 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. 2 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 3 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 4 Reference Resolution No. 10383 (CCS).