sr-082278-11bSanta Monica, Cal,,ornia, August.l5, 1978
T0: Mayor and Gity Council
FROM: City Staff
SUBJECT: Charges for Recreation and Parks Services
Introduction
1
AUG 2 2 1978
This report contains staff recommendations for changes in Resolution
4231 (CCS) fees and charges for Recreation and Parks services.
Background
During budget study sessions with Council and with the City Manager's
office, direction was given to develop a plan that costs incurred for
services provided (i.e., building use, ball field. lights,. recreation
programs) should be recovered as nearly as possible through the use
of fees and charges placed upon the users involved.
The basis for this has previously been established by the preamble
to the fees and charges resolution which reads in part:
"....evaluation should be based upon social criteria and
not economic. criteria and members of the public
are entitled to have those making use of a limited .public
facility pay. their just share of the cost of operating, main-
taming, and constructing such facilities ...."
With the above direction, staff reviewed the existing policy where
fees are waived for residential youth and adult groups for the use
of buildings and for youth in the use of athletic fields, and the
policy of free swimming lessons for resident youth as well as the
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AU6 2 2 997$
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August. 15, 1978
free recreational swimming. for youth during June, July, and August.
Operational costs were analyzed and it was determined that the
costs to operate and maintain the buildings is .0185 cents per
square foot. This figure includes--a11 department--and City overhead
factors 'and. was then applied to the square footage of each building
to determine the rental rate.
Economic Impact
Under the current fees and charges policy the City receives $47,310
in revenue. It is estimated that the proposed fees would increase
the revenue $100,000 to $150,000 per year if initiated at once.
Athletic field rentals, ..and swimming pool charges were compiled by
applying a 41.5% increase to existing fees (April '77 - April '78
6.5% Consumer Price Index + 35% Overhead All Urban Index, Los Angeles -
Long Beach).
At their regular commission meeting the Recreation and Parks Commission
acted as follows:
To advise Council that they amend the proposed resolution
to waive the building rental fee for all resident adult
and youth groups and similarly waive athletic field rental
fees for all resident youth groups.
This would result in an increase of approximately $15,000 annually
in revenue.
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r~ .gust 15, 1978
This additional. revenue would be used for building maintenance
(reduced $42,.240 for Jarvis.-Gann adjustment), equipment maintenance,
playground .equipment maintenance, and other outdoor facilities
(reduced $34,650 for Jarvis-Gann adjustment), vehicle maintenance
(reduced $9,970 for Jarvis-Gann adjustment); and to replace two
custodial employees laid off through Jarvis-Gann adjustments.
Alternatives
1. Council may authorize the increase in .fees and change the policy
and charge all groups (including resident groups) for the use
of facilities, and adopt the changes as presented, and instruct
.the City Attorney to prepare a resolution.
2. Council may authorize the increase'in-fees and continue the
present policy of only charging for non-resident groups in
building rentals and adults for ball field .rentals as recommended
by the Recreation and Parks Commission and instruct the City
Attorney to prepare a resolution.
3. Council may reject the recommended policy change and continue
the present policy and present fees thus maintaining the cuts
in maintenance fostered by Jarvis-Gann.
4. Council may change the present policy of exemption and charge
all adult and youth groups for the use of facilities, but
phase-in the increases over the next four (4) years. Effective
January 1, 1979,. the current fees would be charged to all adult
and youth groups. Each succeeding January the fee would be
T0: Mayor and Cite Council august. 15, 1978
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increased by 1/4 of the difference between the current fee
and the maximum proposed £ee until the maximum proposed fee
is reached. However, each year the fee would be adjusted by
the A11 Urban:-.Los Angeles - Long Beach Consumer Price
Index from November to November, and the operational overhead
costs. The adjustments would be either increased or .decreased
as the indicators. show.
5. Council may change the present policy of exemption and charge
all adult groups and waive the fees for youth groups, phasing
in the increases over the next four (4) years. Effective January
1, 1979, and then each succeeding January the fee would be increased
by 1/4 of the difference between the current fee and the maximum
proposed fee until. the maximum proposed fee is reached. However,
each year the fee would be adjusted by he All Urban Los Angeles -
Long Beach Consumer Price Index from November to November and
by the operational overhead costs. The adjustments will either
be increased or decreased as the indices show.
Recommendation
Staff recommends Alternative No. 4 Council changing the present
policy of exemption and charging all adult and youth groups the
current fee for the use of facilities and phasing-in the increases
over the next four (4) years. effective 7anuary 1, 1979, the current
fee would be charged to all adult and youth groups. Each succeeding
January the fee would be increased by 1/4 of the difference between
T0: Mayor-and Citi ;ouncil
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A Just 15, 1.978
the current fee and the maximum proposed fee until the maximum
proposed fee. is reached. However, each year: the fee would be adjusted
by the A11 Urban Zos Angeles - Zong Beach area. Consumer Prive Index,
November to November and the operational overhead costs. The adjust-
ments will be either increased or decreased as the indicators show.
Council should also instruct the City Attorney to prepare a resolution
to this effect.
Prepared by: Donald T. Arnett, Director
Recreation and Parks
DTA:pp
Attachment