SR-04-23-2013-8A - 308-001-02City Council Meeting: April 23, 2013
Agenda Item: 8 -A
To: Mayor and City Council
From: Karen Ginsberg, Community and Cultural Services Director
Subject: Options for Addressing Use of City Parks and the Beach for Commercial
Fitness Instruction, Classes or Camps
Recommended Action
Staff recommends that the City Council:
1. Review and comment on a proposed regulatory system to address the use of
City parks and the beach for commercial fitness instruction, classes or camps,
and
2. Direct staff to prepare an amendment to Chapter 4.55 of the Municipal Code to
create a new regulatory structure, permit system and use charges for all
commercial fitness instruction, classes or camps in City parks and the beach.
Executive Summary
In response to Council direction, staff has developed a proposed regulatory system for
non -City sponsored commercial fitness instruction, classes or camps offered in parks
and the beach. The new regulatory structure would include a change to the Municipal
Code, new rules, and a permit system with permit and use charges.
After collecting feedback and suggestions from fitness trainers and residents, staff
developed a proposed regulatory structure that largely achieves consensus. The
changes include: the need for a permit system; insurance; indemnification; compliance
with existing business license and police permit rules; identification of parks appropriate
for commercial fitness activity; and new rules addressing protection of park amenities.
The areas where consensus was not achieved include: the amount of use charges to
be paid by trainers and instructors; and the extent of the restrictions in Palisades Park.
Background
For several years, community members have regularly complained to staff about the
proliferation of unregulated fitness training and boot camps in City parks and at the
beach. Most of the complaints about this activity refer to the intense use of the north
end of Palisades Park.
Staff has also received complaints from City sponsored class and camp instructors that
commercial youth class and camps are setting up operation in open areas of the parks
and at the beach without having to meet permit requirements and /or pay a use fee and
thus are unfairly competing with City sponsored classes and camps.
During its .920 2 meeting, the Recreation and Parks Commission reviewed
this list of concerns. The Commission recommended that Council direct staff to develop
a regulatory system and suggested that staff research legal precedents, how other cities
handle the issue, consider a lottery system and time and site limits for various activities.
On Al -il :01. 2012, staff brought these community concerns to the Council, and asked
for direction. Council directed staff to return with options for addressing community
concerns related to commercial fitness classes and large equipment in the parks and at
the beach.
Discussion
In preparation for developing options for a regulatory system, staff:
reviewed existing City use charges, especially charges imposed on instruction for
compensation,
• reviewed relevant codes and official park and beach rules,
• developed an understanding of what private fitness instructors using City parks
and the beach currently pay the City,
• evaluated regulatory models and approaches used by other cities and the Los
Angeles County Department of Beaches and Harbors,
• surveyed existing classes and training activities in Palisades Park over a one
week period,
® conducted two public meetings; one focused on instructors and another for
residents, and
® at the request of the North of Montana Association (NOMA), made a presentation
at a monthly meeting, and attended a subsequent meeting where the issue was
discussed..
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In addition, a staff presentation and public hearing was held at the NoVi _!m er 15. 2 f 2
meeting of the Recreation and Parks Commission.
Existing City Practices
The City currently has several regulatory processes in place that authorize instruction
for compensation in City parks, park facilities and the beach. For years, the City has
required tennis instructors to obtain permits and pay fees for court use. Surf instruction
permits have been awarded since 2008 to a select number of instructors, all of whom
have business licenses, pay permit fees, provide proof of insurance, and share a
percentage of their revenues. The City also contracts with instructors to conduct
classes inside park facilities, outdoors, and at the beach with shared revenue and other
requirements. A summary of existing City practices can be found in Attachment A.
Most instructors pay at least 15% of gross revenues or an equivalent hourly rate for use
of park facilities and specific park or beach areas (fields, courts, surf, etc.) and many
pay a larger percentage.
Business License and Police Permits
As is true for all businesses operating in the City, commercial fitness instructors must
obtain a City business license. In addition, police permits and finger printing are
required for certain classifications of businesses, such as fitness instructors. Below is a
chart that shows the fees that are required of fitness trainers:
Business License Tax (annual)*
$75.00
Fingerprinting fee (1 time fee)
$80,82
Police Permit Fee (annual)
$91.94
Zoning Review Fee (1 time per location)
$35.47
State Mandated Fee (annual)
$01.00
TOTAL
$284.03
*Fitness trainers are required to pay the minimum business license tax of $75.00 for
gross receipts of $0 to $60,000. Applicants that generate less than $40,000 annually
can claim the small business exemption which waives the minimum license tax of
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$75.00. The gross receipts tax is based on $1000 of sales. The tax rate for gross
receipts over $60,000 is $3.00 per $1,000.
Information obtained from the Business License office showed that in FY 2012 -2013 a
total of 87 trainers' accounts were established. Of the 87 accounts, 52 were businesses
grossing $40,000 or less; 7 businesses grossing $40,000 - $60,000; 12 businesses
grossing $60,000 - $100,000; and 16 businesses grossing $100,000 or more. These
business licenses were issued to trainers that work outdoors in a park or at the beach
as well as those who work at an indoor fitness center or other facility.
The average total fee paid in FY 2012 -2013 for a trainer with a business grossing
$40,000 or less was $255.18. This average included business license tax, the police
permit fee, a one -time finger printing fee, a one -time zoning review fee and a State
mandated fee.
Other Cities /County Practices
Many nearby municipalities, including a number of beach cities, heavily regulate or
prohibit commercial activity in parks and at the beach. Redondo Beach requires all
instructors /trainers to contract with the City through City- sponsored classes. Los
Angeles and Culver City, and Los Angeles County Department of Beaches and Harbors
charge hourly use charges ($36 - $200 per hour) and /or a percentage of gross receipts
for commercial fitness activity and camps. Manhattan Beach screens trainers and limits
permits by date, time and location (Attachment B).
Palisades Park Use Survey
To understand the intensity of commercial fitness activity in Palisades Park, staff
observed and recorded class locations, size and equipment for a one week period in
late October. Staff recorded 73 group classes and 74 private /semi- private classes (one
to two participants) with the highest concentration of instruction taking place from
7:OOam to 1:OOpm between the blocks of San Vicente Blvd. and Idaho Avenue. Over
90% of the classes used some type of equipment which at times was attached to park
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amenities including light poles, benches, historical structures as well as trees.
(Attachment C)
Community Meetings
Two well- attended public meetings were held. In June, staff gathered 35 trainers
together to discuss neighbor concerns and develop initial options to address the
concerns. In early November, Palisades Park - adjacent residents were invited to join
trainers and their clients (25 total participants) and provide feedback on a draft outline of
a proposed regulatory system.
Recreation and Parks Commission Recommendation
At the November 15, 2012 Recreation and Parks Commission meeting, staff presented
options for a regulatory approach to commercial fitness instruction based on input from
the community meetings, listened to extensive public testimony and adopted the
following recommendations for Council consideration:
• establish a permit system for commercial fitness instruction, classes, or camps
held in a City park or at the beach with changes to municipal codes, as required;
• implement a $100 annual fee to cover the cost of issuing an Instructor Permit;
• implement a use charge of 15% of gross receipts;
• impose no restrictions for equipment, or time of day;
• impose no limit on the total number of permits issued; and
• implement permit locations — parks for group classes, semi - private classes only
(1 -on -1 or - on -2), or no instruction.
For Palisades Park, the Commission recommended that:
• commercial fitness classes and /or training be limited to private and semi - private
classes only (1 -on -1 or - on -2). No group classes would be allowed.
• staff develop a list of exercise equipment that would be prohibited in Palisades
Park.
Following the Commission meeting, staff continued to correspond and meet with
residents and trainers and their representatives to address the remaining areas of
disagreement related to limitations on group classes in Palisades Park, and the
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appropriate percentage of gross receipts to be charged. Regrettably a resolution has
not been fully achieved as trainers continue to feel strongly that Palisades Park should
remain available to commercial group fitness instruction, classes and camps while
residents continue to communicate displeasure with the intensity of use in Palisades
Park, concerns about hours, equipment and damage to the park. Trainers also say that
the 15% of gross revenue use charge is too high.
PROPOSED PERMIT AND REGULATORY SYSTEM
Based on extensive research, analysis and public and Commission input, staff
developed the following proposed permit and regulatory system for Council
consideration:
Amend the Municipal Code to require City authorization of commercial fitness
instruction, classes, or camps in City parks and the beach, and clarify terms such as
"compensation" through definitions as needed.
Instructor Permit (Group /Camp and Private /Semi- Private):
• Annual permit fee of $100, ($150 for camps responding to an RFP).
• Use charge of 15% of gross receipts payable within 15 days of the end of each
quarter.
• Application form, City business license, police permit, release of liability, and
proof of insurance naming City as an additional insured.
• Private /Semi- Private Permits are for instruction of classes of no more than 2
participants.
• Group /Camp Permits are for instruction of more than 2 participants and include
commercial youth instruction, classes and camps in parks and on the beach.
• Class size, including instructors, cannot exceed 150 or an event permit would be
required.
New Rules:
Park amenities may not be used for exercise activity except on existing City installed
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exercise equipment located on the par course at Clover Park. These include light poles,
pergolas, picnic tables, benches, railings, chain link fencing, freestanding signs, bike
racks, and barbeque grills (Attaching any wire, rope, swing or any object to any public
tree is already prohibited in the Municipal Code [Chapter 7.40]). Adults may not
exercise on playground equipment. Exercise equipment weighing over (25) pounds, is
prohibited in all parks as it is deemed unsafe for use in the public setting. Permit holders
may not request other park users or permittees to move to another location.
Permit Locations:
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Palisades Park
Palisades Park is the City's only park that is a designated City Landmark. In addition to
having many historic structures and amenities in it, it has the heaviest concentration of
fitness classes, is heavily used by the public, is quite narrow, and very close to
residences, Due to the reasons listed above, staff recommends:
Class Size: allow private and semi- private (1 -on -1 and 1 -on -2) commercial
fitness instruction only
Equipment: prohibit all exercise equipment weighing over 25 lbs.
Alternatives
As an alternative to staff recommendations above, City Council could consider the
following:
Class Size:
• prohibit all commercial fitness instruction, classes or camps in Palisades
Park, or
• allow group commercial fitness instruction, classes or camps in Palisades
Park with limitations on frequency and locations available, or
• allow group commercial fitness instruction, classes or camps in Palisades
Park but limit group size to no more than 10 participants with limitations on
frequency and locations
Equipment:
• prohibit use of all exercise equipment in Palisades Park, or
• prohibit use of all exercise equipment in Palisades Park and other parks listed
above as only for private/semi-private training (i.e., Goose Egg, Barnard
Linear Way, Crescent Bay and Memorial Park),
® place no restrictions on use of exercise equipment in any park, including
Palisades Park.
Use Charge
• establish a fixed use charge to be paid quarterly
• adopt a use charge reflecting a lower percentage of gross receipts
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Next Steps
Following direction from Council, staff will return to Council with an Ordinance in June
revising Chapter 4.55 of the Municipal Code and will under the Director of Community
and Cultural Services' authority pursuant to section 4.55.420 of the Municipal Code add
the above new rules to the City's official park and beach rules.
Financial Impacts & Budget Actions
Establishment of a regulatory system for fitness instruction, classes or camps with a
proposed permit fee and percentage of gross receipts will create a new General Fund
revenue source to the City which staff will estimate following Council direction. Should
Council approve the regulatory system and use charges, staff will include the
associated revenue in the FY 2013 -15 proposed budget.
Prepared by: Wendy Pietrzak, Acting Community Use Administrator
Julie Silliman, Senior Administrative Analyst
Approved:
Forwarded to Council:
Karen Ginsber Rod Gould
Director, Community & C tural Ser ices City Manager
Attachments:
A. Existing Santa Monica Practices
B. Other City /County Practices
C. Palisades Park Use Survey
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Attachment A
Existing Santa Monica Practices
City- Contracted Classes:
Instructors or companies are contracted by the City though a Request for Proposal
(RFP) process for community classes and camps. Contractors offer a range of activities
and camps with registration and some marketing conducted by the City. The City retains
a percentage of gross revenue ranging from 14% - 40% of registration fees.
Surf Instruction Permits:
Permittees are selected through a RFP process, pay a $150 annual permit fee, plus a
percentage of gross receipts ranging from 15% to 20 %. Other requirements include City
business license and police permit, signed release of liability, and proof of insurance.
Court Permits:
Permits are issued for instruction on tennis, basketball, and beach volleyball courts by
the hour on a first - come - first -serve basis. Permit fees vary depending on location,
hours, residency, activity type, number of participants, and are based on an hourly rate
ranging from $10.00 to $64.00.
Field Permits
Resident Camps, $25.00 - $35.00 /hour depending on sport
Non - resident Camps, $31.00 - $37.50 /hour depending on sport
1 — 2 clients: $10.00 1hour, $5.00/'/2 hour. Limited to 2 clients only
Permit Requirements
Application, application fee, use charge, business license, police permit, release of
liability, and proof of insurance naming City as additionally insured may be required.
is
Attachment B
Other City /County Practices
Culver City
Most trainers participate in City - sponsored classes. Some park "grassy" areas are
rented at $36/$52 (res /non res) per hour. Proof of insurance and business license
required. If activity conflicts with a City - sponsored class, they deny the permit.
Mechanical equipment, amplified sound, generators, and lights prohibited. No permits
issued for passive parks or parks where neighbors have objected to this type of activity.
Beverly Hills
Trainers allowed with 1 or 2 clients. Larger groups (more than 2), and equipment is
prohibited.
West Hollywood
The City currently prohibits private tennis and golf instruction and is considering
expanding this ordinance to address other types of instruction. If a commercial activity
conflicts with a City- sponsored class it is not allowed.
Los Angeles
Boot Camp and Private Workshop charge is $60.00 per hour. Proof of insurance is
required.
Newport Beach
Commercial use of a park area to conduct training is $200 per hour for residents and
$401 per hour for non - residents with a 2 hour minimum requirement. Beach areas
cannot be reserved. A business license and insurance is required. The citation for
operating w /out a permit is $100 first time, $200 2nd time, and $500 3rd time.
Manhattan Beach
Commercial personal training prohibited in all parks, fields and open space without
permit. Permits are issued on a very limited basis and only for specific parks. Permits
are date, time and site specific. Permit holders must comply with rules, pay a $25
application fee, a $200 Annual Permit Fee and contribute 1% of gross receipts.
Redondo Beach
Only allows City- sponsored classes.
Los Angeles County Beaches and Harbors
All commercial activity on the beach and in beach parking lots requires authorization.
Camps/Training - $200 application fee + minimum $100 location charge (summer only)
and 15% of gross receipts. Day Use — flat rate or % of registration fee charged.
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Attachment C
Palisades Park Use Survey
Dates of Survey: October 24, 2012 through October 30, 2012
Hours of Survey: 6:00 a.m. to 7:00 p.m.
Number and Type of Classes
® 73 group classes (more than two participants) and
® 74 private /semi - private classes (one to two participants) with the
Location
Highest concentration of instruction took place between the blocks of San Vicente Blvd.
to Idaho Avenue.
Hours of Classes
75% of the groups classes occurred between 7:00 a.m. and 1:00 p.m.
® 82% of the private /semi - private classes occurred during these hours.
Use of Equipment
Staff observed that 90% - 95% of the classes whether group or private /semi - private
used some type of equipment such as yoga mats, hand weights, bench presses, kettle
balls, cones, large ropes, and miscellaneous items such as chalk/white boards, boom
boxes and signage promoting the class.
Some of the equipment used was attached to park amenities.
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4/23/2013
Use of ! ,
and the -
lor Commercial
Fitness Instruction, .
Background
❑ Commercial fitness instruction, classes
and camps are currently
unregulated.
❑ Residents and park users have
expressed a range of serious
concerns.
❑ Council asked staff to study and
return with options for a regulatory
system.
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4/23/2013
Recommended Regulatory System
Palisades Park
Characteristics:
Designated City Landmark with
historic structures and amenities
Heaviest concentration of commercial
fitness activity
o Narrow and close to residences
!:! Open 5am to midnight (all other
parks bam to 11 pm)
Recommendation:
o Allow private /semi- private instruction
only
❑ All new rules and permit
requirements apply
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