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SR-01-13-2015-8ACity of Council Report Santa moniea City Council Meeting: January 13, 2015 To: Mayor and City Council From: Karen Ginsberg, Community and Cultural Services Director Subject: Commercial Fitness or Athletic Instruction, Classes or Camps Permit Program Pilot Year Update and Discussion of Proposed Changes Recommended Action Staff recommends that the City Council: 1. Review and comment on proposed administrative modifications to the Commercial Fitness or Athletic Instruction, Classes or Camps Pilot Permit Program. 2. Adopt the attached Resolution Establishing Revised Permit Fees and a Use Charge for Commercial Fitness or Athletic Instruction, Classes or Camps. Executive Summary This report presents an assessment of the pilot year of the Commercial Fitness or Athletic Instruction, Classes or Camps permit program which has operated since January 2014 at designated City parks and at Santa Monica State Beach. The program has been quite successful in meeting expectations. There has been an overall reduction in the amount of commercial fitness or athletic instruction, classes or camps taking place in City parks and at the beach, and community complaints about commercial instructors have drastically decreased. The permit program has been effective in requiring commercial instructors to carry insurance, obtain a Santa Monica business license, reduce impacts on neighbors and park users, protect park and beach amenities, and compensate the City for commercial use of public land. Staff is recommending several refinements to the program based on feedback from community members, instructors, the Recreation and Parks Commission, and from City staff responsible for administration, maintenance, and enforcement of the permit program. The refinements to the permit program include several changes to the rules and regulations which are administrative in nature and have been approved by the Director of Community and Cultural Services pursuant to Section 4.55.030 of the Santa Monica Municipal Code. These proposed changes include: the. number of permits issued and hours of operation for Palisades Park; group size limitations at Virginia Avenue Park; the number of Approved Instructors per permit; displaying of City issued signs; 1 prohibiting instructors from reserving or holding spaces; adding volleyball to the list of sports requiring a court permit for commercial instruction; requiring groups and their belongings to maintain a clearance from tree trunks; and requiring permittees to submit usage reports. In addition, a modification to the use charge payment structure is proposed for Council consideration. The modification will include continuing the flat rate use charge pro -rated quarterly for income up to an established threshold amount based on group size as well as charging a percentage of gross receipts earned above the threshold. Background For several years, community members as well as City class and camp instructors regularly complained about the proliferation of unregulated fitness training and boot camps in City parks and at the beach. The majority of complaints about this activity concerned the intensity of use at the north end of Palisades Park by trainers and their clients. During its January 19 2012 meeting, the Recreation and Parks Commission recommended that Council request that staff develop a regulatory system for use of the parks and beach by commercial fitness trainers. The Commission also suggested that staff research how other cities handle the issue of fitness classes in public open spaces. On Aril 10 2012, staff brought these community concerns to Council for direction and Council directed staff to return with options to address these community concerns. On April 23. 2Q13, staff presented Council with options for addressing use of City parks and the beach for commercial fitness instruction, classes or camps. Council asked staff to return with refinements to the program including options for group training areas in Palisades Park with proposed time, place and group size restrictions. On October..8, 2013, an ordinance amending Chapter 4.55 of the Municipal Code related to commercial fitness or athletic instruction, classes or camps in parks and at the beach, and a fee resolution establishing a permit fee and use charges was introduced. Council approved staff's recommendations as amended and adopted Resolution Number 10779 (CCS). At its October 22 2013 meeting, Council adopted Ordinance (CCS) and the law became effective January 2014. An Information Item was presented to City K, Council on July 24, 2014 providing an assessment of the first half of the pilot year, including summary results of a community survey conducted in May 2014. Discussion Staff spent December, 2013 and January, 2014 educating the public about the permit program application process, permit requirements, rules and regulations as well as fees and use charges. Applications for commercial fitness or athletic instruction, classes or camps permits were accepted beginning December 2, 2013 and processed as received, with the exception of applications for medium and large group permits for Palisades Park. Applications for Palisades Park were initially accepted from December 2, 2013 — December 16, 2013 only, however, since the 20 permit limit was not reached, applications were also accepted beginning in June 2014 until filled, with all permits expiring December 31, 2014. Permits Issued: A total of 26 permits were issued for 2014 with the following breakdown of group size by location: ® Palisades Park: 6 small — no more than 2 participants 4 medium — no more than 10 participants 3 large — no more than 15 participants ® The Beach and other Approved Parks: 1 small — no more than 2 participants 9 medium — no more than 10 participants 3 large — more than 10 participants ® Reed Park: No permits were requested or issued for Reed Park Under the current process, permittees' are required to list their additional instructors' names on the application to become Approved Instructors. During the pilot year the number of Permittees and their Approved Instructors per quarter varied from 44 to 72 with 34 instructors authorized to work in Palisades Park. 3 Permittees and their Approved Instructors are issued photo ID badges that must be worn when they are instructing as well as City issued small portable signs to be displayed on site. The ID badges and portable signs make it easy for enforcement staff, Public Landscape staff, trainers, neighbors, and community members using the parks and /or beach, to identify Permittees and Approved Instructors. A current list of Permittees and their Approved Instructors is posted on the City's web page at www.smqov.net/trainers. Portable Approved Instructor Sign Approved Instructor Displaying Sign Approved Instructor Photo ID Badge Hours of Use by Location: Permittees submit quarterly reports indicating the number of instruction hours conducted during the previous quarter by location. Based on these reports Palisades Park remains the most popular location for commercial fitness or athletic instruction 12 followed by the beach and Clover Park. The chart below lists the hours of use reported each quarter by the permittees for the authorized locations. Hours of Commercial Fitness or Athletic Instruction, Classes or Camps Conducted Palisades Park SM State Beach Clover Park Beach Park #1 Marine Park Stewart St. Park Virginia Ave. Park Airport Park Beach Green Others Combined Sub -Total Jan - Mar Apr - Jun Jul - Sept 736 654 735 342 580 677 135 314 279 93 138 0 40 40 50 24 24 0 14 90 117 13 81 84 0 49 77 1 0 0 13981 19701 2020 YTD Total Hours 1 5388 Hours for October— December, 2014 are not yet available Enforcement: Permit administration staff meets monthly with Police Department and Code Enforcement staff to evaluate and discuss the permit program. The Police Department reports that since January 2014 53 complaints have been received regarding potential violations of the permit program such as attaching exercise equipment to park amenities and trees, athletic or fitness instruction without a permit, and excessive noise. Over 70% of these 53 complaints were received in the first six months of the permit program with 16 complaints received between July 1st and November 30th. These complaints were responded to by either Police Department Public Service Officers and /or Code Enforcement Officers. If enforcement staff assigned to investigate the case determined a violation had occurred, an Administrative Citation could be issued. Throughout the year based on both complaints received as well as pro- active observation, Code Enforcement staff responded to concerns about potential violations 5 to the Commercial Fitness or Athletic Instruction, Classes or Camps permit program with increased enforcement efforts from July — September. Thirty five cases regarding potential violations of the municipal code were opened between February and December 2014 with three cases resulting in the issuance of an Administrative Citation. Park Maintenance: Though the Commercial Fitness or Athletic Instruction, Classes or Camps permits are valid at many parks, most of the visible impacts have occurred at Palisades Park. Public Landscape Division (PLD) staff reports that they have worked closely with the Permittees and Approved Instructors in Palisades Park to alleviate compaction of the turf in the park and instructors have cooperated when asked to rotate areas of use within zones or to relocate for maintenance issues. Even with this diligence, PLD staff reports that the four zones show signs of more wear /tear and compaction of the turf as compared to other areas in the park. Public Landscape staff also reports a decline in the New Zealand Christmas trees (Metrosideros Excelsus) located between Montana and Palisades Avenues which may, in part, be attributed to training that takes place under the canopy of these trees and the related compaction. In the areas north of Marguerita Avenue where commercial fitness or athletic instruction is not permitted, PLD staff reports that there has been significant improvement in the condition of the turf. Based on these finding, PLD staff proposes the following 1) To rotate closure of the zones, as is done for sport fields, allowing time for staff to perform maintenance and allow the landscape time to recover. 2) To establish tree protection zones where equipment or individuals are not allowed within 10' of the base of trees. Additionally, PLD staff will actively monitor large heritage trees and add mulch rings to further protect the trees and alleviate compaction. 3) To increase frequencies and operating procedures to landscape management practices which include; aeration, fertilization, over - seeding, top- dressing and sod replacement to meet the needs and demands of the park accordingly. PLD also proposes to implement new methods of aeration to alleviate compaction and in doing so increase the health of the landscape, more specifically the turf and trees. With the proposed revisions in place PLD staff will be able to maintain the standards set forth in the Division's Park Maintenance Performance Standards. 4) To establish a weather condition "info line" used to notify commercial instructors when the parks have been shut down due to inclement weather or park conditions. Funding for the coast of the proposed additional repairs /enhancements would be included in the proposed FY 2015 -17 Biennial Budget. Community Feedback: In May 2014, a survey was issued to approximately 250 contacts from the Commercial Fitness or Athletic Instruction, Classes or Camps interest lists, inclusive of Santa Monica residents, neighborhood groups, commercial instructors and their clients, and other interested parties. The purpose of the survey was to obtain feedback regarding the pilot permit program. The survey included 13 questions; participants were given an opportunity to make recommendations regarding specific aspects of the permit program. One hundred four responses were received. In most cases responses were mixed. Staff's recommendations were informed by survey findings. Full survey results are available at www.smqov.net /trainers. Commission Action: At the November 20, 2014 Recreation and Parks Commission meeting, staff presented recommendations for changes to the Commercial Fitness or Athletic Instruction, Classes or Camps permit program. After considerable discussion, the Commission supported staff's recommendations with the following recommendations to Council: 1) Prohibit Commercial Fitness or Athletic Instruction, Classes or Camps prior to 7:00 a.m. on Saturdays in Palisades Park. Staff had originally recommended no change to the current 6:00 a.m. start time. VA 2) Allow only small and medium group size permits Monday — Friday in Virginia Avenue Park and only small group permits on Saturdays and Sundays. Currently small, medium and large group instruction is allowed daily, and staff had originally recommended only small groups be allowed. 3) Continue the flat rate use charge pro -rated quarterly for income up to the following thresholds: small groups $18,000, medium groups $36,000, large groups $54,000; with permit holders paying a percent of gross revenue for income above the thresholds as follows: 5% Reed Park permit, 15% Palisades Park permit, 10% general permit. Waive the use charge for Reed Park permits. Staff had originally recommended a use charge based solely on percent of gross revenue however concern was expressed by Commissioners and members of the public that a use charge based strictly on a percent of gross revenue would be difficult to enforce and may attract more, and less professional commercial fitness or athletic instructors. Rules and Regulations: As a result of its review of the pilot program including public and Commission input, staff proposes to amend the administrative rules and regulations approved by the Director of Community and Cultural Services pursuant to Section 4.55.030 of the Santa Monica Municipal Code as follows: 1) 2014 Permit Locations by Group Size: Small only — Barnard Way Linear Park, Crescent Bay Park, Memorial Park, Tongva Park Small, Medium, & Large — Airport Park, Beach Green, Beach Park 1, Clover Park, Douglas Park, Hotchkiss park, Marine Park, Ocean View Park, Palisades Park, Reed Park, South Beach Park, Stewart Park, Virginia Avenue Park (VAP) 0 2015 Staff Recommendation: At VAP, allow small and medium group permits Monday through Friday, and allow small groups on Saturdays and Sundays. Retain current group size designations at other approved locations. Virginia Avenue Park was designed as a neighborhood park campus with a variety of free educational and recreational programs and activities for Santa Monica families of all ages and abilities. The outdoor amenities (playgrounds, splash pad, grass areas, picnic facilities, and basketball courts) are heavily used by the community as a popular location for family picnics, pick -up sports, and visits to the weekly Farmer's Market. With the addition of the new Pico Branch Library, the park has become even more popular. During 2014 small and medium groups offering commercial fitness instruction were issued permits to use VAP: Park staff believes that without some limitations especially on weekends, use of the open space by the general public would be impacted. Staff believes that limiting permits for VAP to small and medium groups on weekdays and only small groups on weekends will address this concern while still allowing commercial instruction to occur. Park staff discussed this with the Virginia Avenue Park Advisory Board (VAPAB) and they are supportive of this recommendation. 2) 2014 Limit on Number of Approved Instructors: Unspecified 2015 Staff Recommendation: When the Commercial Fitness or Athletic Instruction, Classes or Camps permit program was developed, no limitations were set concerning the number of additional instructors that each permittee could have. Since program implementation, the number of permittees with additional instructors has risen from 9 to 14 with 5 permittees who have 4 or 5 instructors in addition to themselves. In an effort to keep the permit program manageable and balance it with other park use, it is recommended that permittees be allowed to have a maximum of 5 instructors in addition to themselves. wo 3) 2014 Permit Hours: 6:00am — 9:00pm daily, except not valid Sundays in Palisades Park 2015 Staff Recommendation: Maintain the 2014 permit hours except permits are not valid until lam on Saturdays, as per the recommendation of the Recreation and Parks Commission. 51% of survey respondents believed the hours approved for 2014 are appropriate. 4) 2014 Palisades Park Additional Regulations: • No more than 20 medium or large group permits issued • Unlimited small group permits issued • Large groups may not have more than 15 participants • Permits not valid north of Marguerita Avenue • Med /large groups restricted to 4 zones Zone 1: Palisades Avenue north to Alta Zone 2: Montana Avenue north to Palisades Avenue Zone 3: Immediately north of Idaho Zone 4: Wilshire north to the public restroom • Maximum of 2 medium or large groups per zone at a time 2015 Staff Recommendation: Maintain the 2014 Palisades Park additional regulations, except limit the number of permits issued for medium or large groups to 15 and, limit the number permits issued for small groups to 15 to better manage and balance the use of Palisades Park by these groups. In the event applicants exceed availability, a lottery would be held. 5) Add that a City issued sign must be displayed while conducting commercial fitness or athletic instruction, classes or camps. 10 6) Add a rule prohibiting Permittees and Approved Instructors to reserve or hold space. 7) Add volleyball to the list of sports requiring a court permit for commercial instruction. 8) Add a rule to require groups and their belongings to maintain a clearance of at least 10 feet from tree trunks to reduce compaction. 9) Add a rule requiring permittees to submit usage reports to the City. 2014 Use Charge Payment Structure The permit program includes a $100 annual permit fee ($150 if a lottery or Request for Proposal is required). In addition to the permit fee, an annual use charge, pro -rated quarterly, is imposed for use of City parks and the Santa Monica State Beach, as follows: Small groups $1,800, medium groups $3,600, large groups $5,400. A 50% increase is charged for Palisades Park permits, and a 50% reduction is in place for Reed Park permits_ 2015 Staff Recommendation: Modify the use charge as follows while retaining the 50% increase for Palisades Park permits, and the 50% reduction for Reed Park permits: Permit Group Size Charge Small (not more than 2 participants) $1,800 plus 10% of the permittee's annual gross receipts earned in excess of $18,000 Medium (not more than 10 participants) $3,600 plus 10% of the permittee's annual gross receipts earned in excess of $36,000 Large (more than 10 participants) $5,400 plus 10% of the permittee's annual gross receipts earned in excess of $54,000 Implementing a percent of gross revenue use charge for income above the proposed threshold requires groups that utilize the parks and beach most extensively to 11 compensate the City in a manner more commensurate with their use of public space. This payment structure modification will likely impact only highly active permittees with multiple instructors or numerous classes and camps with large participation levels and extended hours operating year -round or during school breaks. Staff considered the recommendation of the Recreation and Parks Commission to implement a tiered percent of gross receipts based on location, however because many Permittees and their Approved Instructors work in multiple locations this proposal would be impractical to implement. Charging 10% of gross revenues earned above the established threshold, is more feasible and practical for staff to administer. The Recreation and Parks Commission also recommended that the use charge for Reed Park permits be waived during 2015, however staff recommends that the 50% reduced use charge implemented in 2014 be retained. In FY2014 -15 CIP funding was allocated to address design modifications of the green space in Reed Park to better activate the area. Katherine Spitz Associates, Inc. was selected as the landscape architect for the project following a Request for Proposal process and the first community design workshop is scheduled on Saturday, January 24, 2015. Alternatives As an alternative to staff recommendations above, Council could consider the following: ® Operate the Commercial Fitness or Athletic Instruction, Classes or Camps permit program with no changes from the pilot year ® Implement only a selection of the recommended changes ® Implement additional restrictions for Palisades Park Next Steps The 2014 Commercial Fitness or Athletic Instruction, Classes or Camps permits were set to expire on December 31, 2014, however were extended for the January through March 2015 quarter under the 2014 regulations. Staff will issue 2015 permits and implement changes to the Commercial Fitness or Athletic Instruction, Classes or Camps permit program effective April 1, 2015 with permits expiring December 31, 2015. 12 Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. The proposed new use charge payment structure may increase annual revenues by approximately $15,000 at account 01544.409180. Implementation of PLD recommendations may result in future landscape maintenance and repairs costs. Additional revenues generated from the new use charge payment structure and anticipated increases in operating costs will be included for Council review and approval with the Proposed FY 2015 -17 Biennial budget. Prepared by: Kathy LePrevost, Administrative Project Manager Approved: %.o K ren Ginsbe L-Ifiirector, Co munity & Cultural Services Forwarded to Council: Ro&Gould City Manager Attachments: A. Park and Beach Official Rules for Commercial Fitness or Athletic Instruction, Classes or Camps B. Proposed Resolution Establishing Fees and Charges 13 Attachment A Park and Beach Official Rules for Commercial Fitness or Athletic Instruction, Classes or Camps 1. Definitions: • Small Group: Not more than 2 participants excluding instructor(s) and /or spectators. • Medium Group: Not more than 10 participants excluding instructor(s) and /or spectator(s). • Large Group: More than 10 participants excluding instructor(s) and /or spectator(s). • Approved Instructor: An instructor approved by the City that works as an employee or contractor, under the supervision and responsibility of the Permittee. 2. Small Group, Medium Group and Large Group commercial fitness or athletic instruction, classes or camps may be conducted at the beach and in the following parks: • Airport Park • Beach Green • Beach Park #1 • Clover Park • Douglas Park • Hotchkiss Park • Marine Park • Ocean View Park • Palisades Park (with special annual group permit as described below) • Reed Park • South Beach Park • Stewart Street Park 3. Small Group commercial fitness or athletic instruction, classes or camps may be conducted in the following parks daily, with Medium Groups allowed only Monday through Friday: • Virginia Avenue Park 4. Only Small Group commercial fitness or athletic instruction, classes or camps may be conducted in the following parks: • Barnard Way Linear Park • Crescent Bay Park • Memorial Park • Tongva Park 14 5. No commercial fitness or athletic instruction, classes or camps may occur in the following parks: Ashland Park, Beach Park #4, Chess Park, Euclid Park, Goose Egg Park, Joslyn Park, Ken Genser Square, Muscle Beach Park, Ozone Park, Pacific Street Park, Park Drive Park, and Schader Park. 6. Permits for fitness or athletic instruction, classes or camps for compensation are issued on a calendar year basis. (January 1 — December 31) 7. A maximum of 5 Approved Instructors are allowed per permit, in addition to the Permittee. 8. Permits issued for fitness or athletic instruction, classes or camps for compensation shall become invalid if the permittee fails to: • pay all applicable City fees and charges; • maintain a current and valid general liability insurance as required by the City; • execute a required Indemnity and Hold Harmless Agreement; • maintain a current and valid Santa Monica Business License; and • submit quarterly reports including hours of instruction by location and gross receipts, as required by the City 9. Permittees and Approved Instructors must visibly wear a City- issued badge or display card, display the City issued sign at all times while conducting commercial fitness or athletic instruction, classes or camps, and have the City issued Permit available for immediate inspection by City staff upon request. (Permits and City- issued badges and signs are non - transferable.) 10. Permittees and Approved Instructors shall follow City staff instructions in siting or relocating commercial fitness or athletic instruction, classes or camps, in order to avoid damage to City facilities or turf areas, and to avoid interference with maintenance activities and closures including but not limited to closures related to rain events. 11. Permittees and Approved Instructors shall not operate within 10 feet of any tree trunk, and shall, at all times, ensure that participants, students, fitness equipment or personal belongings are at least 10 feet away from tree trunks. 12. No Permittee or Approved Instructor shall reserve or hold any space in any park or on the beach prior to the commencement of the fitness or athletic instruction, class or camp. 13. Permittees and Approved Instructors must site commercial fitness or athletic instruction, classes or camps at least 200 feet away from all City operated classes and /or camps. 15 14. Permittees and /or Approved Instructors shall not use amplification equipment, boom boxes, bull horns or whistles. 15. Permittees and Approved Instructors shall not conduct commercial fitness or athletic instruction, classes or camps in any City park or on the beach between 9pm and 6am except Saturdays in Palisades Park where permits are not valid until lam. 16. Permittees and Approved Instructors shall not require park or beach users to relocate to accommodate a commercial fitness or athletic instruction, class or camp. 17. Permittees and Approved Instructors shall relocate to accommodate City permitted activities, including City approved Community Events and City approved Filming. 18. No Permittee or Approved Instructor shall display, place or distribute, or cause the display, placement or distribution of, any commercial advertising or signage, including but not limited to cards, flyers, brochures, signs or banners, in any City park or park parking lots and at the beach or beach parking lots. 19. No person shall conduct any commercial fitness or athletic instruction, class or camp north of Marguerita Avenue in Palisades Park. 20. No person shall conduct any commercial fitness or athletic instruction, class or camp in Palisades Park on Sundays. 21. Palisades Park Medium and Large Group Permits • A maximum of 15 permits will be issued on a first -come first - served basis. • If more than 15 qualified applications are received during the application period, then a lottery or other allocation process will be used to fairly allocate permits. • No Permittee or Approved Instructor shall conduct any commercial fitness or athletic instruction, class or camp containing more than 15 participants. • Permittees and Approved Instructors of Medium and Large Groups shall not operate outside of the four Zones designated by the City. a) Zone #1: Palisades Avenue north to Alta. b) Zone #2: Montana Avenue north to Palisades Avenue c) Zone #3: Immediately north of Idaho Avenue d) Zone #4: Wilshire Boulevard north to the public restroom • No more than two Medium or Large Groups may occupy a single Zone at any one time. No Permittee or Approved Instructor shall commence operation of a Medium or Large Group in any Zone that already contains two Groups of either Medium or Large size. • Medium or Large Groups shall occupy zones on a first -come first - served basis. No Permittee or Approved Instructor shall reserve or hold any space 16 in any Zone prior to the commencement of the fitness or athletic instruction, class or camp. • These requirements shall not apply to any group only traversing through Palisades Park. 22. Palisades Park Small Group Permits • A maximum of 15 permits will be issued on a first -come first - served basis. • If more than 15 qualified applications are received during the application period, then a lottery or other allocation process will be used to fairly allocate permits. 23. Park equipment and installations, including but not limited to light poles, drinking fountains, public art, bleachers, pergolas, picnic tables, benches, railings, fencing, signs, bike racks, and barbeque grills, shall not be used for exercise activity, except for equipment specifically designated by signage for exercising. 24. Pursuant to Ordinance 4.55.130, no person shall place any equipment or object used for fitness or athletic activity weighing more than twenty -five pounds within any City park without prior authorization by the Director. This prohibition shall not be applicable at Airport Park, Clover Park and Reed Park. 25. A City - issued field permit, consistent with the City's field permitting guidelines, is required for commercial use of a field. 26. A court reservation permit is required for basketball, volleyball or tennis instruction for compensation. 27. No person shall place any exercise weights or any other exercise equipment, with the exception of mats, on the basketball courts. 28. No person shall place any exercise weights or any other exercise equipment, with the exception of mats, on tennis courts. This regulation does not apply to ball machines and ball sweeps. 29. No person shall store athletic, sports or other equipment within any park unless otherwise lawfully authorized to do so. 30. Permittees and approved instructors must abide by the following Code of Conduct • Permittees and Approved Instructors shall be respectful of park and beach users • Permittees and Approved Instructors shall be respectful of City staff • Permittees and Approved Instructors shall be respectful of other instructors and their clients 17 Attachment B City Council Meeting: January 13, 2015 Santa Monica, California RESOLUTION NUMBER (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING PERMIT FEES AND USE CHARGES FOR COMMERCIAL FITNESS OR ATHLETIC INSTRUCTION, CLASSES OR CAMPS WHEREAS, Santa Monica State Beach and City parks are congested public recreational facilities that are heavily used by residents, workers and visitors; and WHEREAS, to maintain safety and maximize public recreational opportunities; it is necessary for the City of Santa Monica to regulate, through a permitting process, commercial fitness or athletic instruction, classes or camps in City parks and on Santa Monica State Beach; and WHEREAS, the permit fees established by this resolution are not more than necessary to recover the costs of the service provided; and WHEREAS, establishment of a charge for commercial fitness or athletic instruction, classes or camp's use of City parks and the beach is consistent with existing surf instruction for compensation charges as currently authorized by local law. 0 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The annual Permit Fee for authorization to provide commercial fitness or athletic instruction, classes or camps in City parks and on Santa Monica State Beach is $100. This fee shall not be applicable to surf instruction for compensation. If a Request for Proposal process, lottery or other allocation process is required, an additional $50.00 Permit Fee shall be charged to compensate for the additional staff time. SECTION 2. In addition to the Permit Fee, an annual charge shall be imposed on Permittees for use of City parks and the Santa Monica State Beach as follows: Permit Group Size Charge Small (not more than 2 participants) $1,800 plus 10% of the permittee's annual gross receipts earned in excess of $18,000 Medium (not more than 10 participants) $3,600 plus 10% of the permittee's annual gross receipts earned in excess of $36,000 Large (more than 10 participants) $5,400 plus 10% of the permittee's annual gross receipts earned in excess of $54,000 The annual charges may be pro -rated and charged quarterly. A 50% reduction in the annual base charge shall apply to any group operating in Reed Park. A 50% increase in the annual base charge shall apply to any group operating in Palisades Park. SECTION 3. The Permit Fee set forth in this resolution shall be subject to Consumer Price Index (CPI) increases each subsequent July 1st. The CIP increase 6 factor shall be the annual rate increase from February to February of the Los Angeles- Anaheim - Riverside Consumer Price index for Wage Earners and Clerical Works published by the United States Department of Labor, Bureau of Labor Statistics. SECTION 4. This Resolution shall be effective April 1, 2015, and on that date, Resolution Number 10779 shall be repealed. The City Clerk shall certify to the adoption of this Resolution. APPROVED AS TO FORM: r MARSHA SHA d I NES MO JTRIE City Attorn y 3