City of Culver City, California
City Council Agenda Item Report
A6-1
RECOMMENDATION:
Staff recommends the City Council consider fee waiver/reduction requests from La
Playa Cooperative Nursery School and direct staff as deemed appropriate.
BACKGROUND:
Each year, the City Council adopts various fees and charges for the City as part of
the budget process. In 2007, the City Council authorized a comprehensive review of
all of the City’s fees. As part of that process, a consultant was selected to perform a
comprehensive update to the City’s fees and charges. Effective for Fiscal Year
2007/2008, the updated fees and charges, many of which had increased as a result
of inflation and a higher level of cost recovery, were adopted by the City Council.
Pursuant to the newly adopted fees and charges, staff has been informing various
groups and individuals of the fees and charges now applicable.
DISCUSSION:
At a recent Council meeting, La Playa Nursery School requested a fee waiver.
La Playa Cooperative Nursery School
The La Playa Cooperative Nursery School (School) has been occupying the
Lindberg Park Building under a License Agreement between the School and the
City. The School’s use of the Lindberg Park Building (Stone Hut) under the License
Agreement is between September – June, Monday through Friday from 8:00 AM to
1:00 PM with periodic extended use during the Summer months. The School
Meeting Date: 03/09/2009 Item Number: A-6
AGENDA ITEM: Consideration of Fee Waiver/Reduction Requests from La Playa
Cooperative Nursery School.
Contact Person/Dept.:
Pam Robinson
Phone Number:
(310) 253-6000
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: Master E-Mail Notification List (03/04/09); Representatives of La
Playa Nursery School (by telephone – 03/04/09).
Department Approval:
Martin R. Cole (03/04/09)
City Attorney Approval:
Carol Schwab (by H. Baker) (03/04/09)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball) (03/04/09)
City Manager Approval:
Jerry B. Fulwood (03/05/09) City of Culver City, California
City Council Agenda Item Report
A6-2
provided a copy of a License Agreement that became effective on July 1, 2003 with
a daily rental rate of $25 and provided for automatic extensions of the License
Agreement on an annual basis. The License Agreement also provided the City
could increase the fee paid by the School provided the City gave at least 120 days’
notice to the School. In 2006, a new License Agreement was signed with the School
that provided for the same general terms. This year, in implementing the fees and
charges schedule, staff provided the School with notice of an increase in the daily
fee from $25/day to $125/day, the fee specified in the fees and charges schedule.
In a letter delivered to the City Clerk (a copy of which was also provided to the City
Council), the School is requesting a new License Agreement effective July 1, 2009
with a fee of $50/day. A copy of the letter is provided (Attachment 1).
FISCAL ANALYSIS:
The revenues projected for Fiscal Year 2008/2009 and those to be projected for
Fiscal Year 2009/2010 have been based upon the fees and charges included in the
adopted fees and charges schedule. Therefore, each fee waiver/reduction granted
would lower the amount of revenues received by the City. Given the current deficit
estimated at $500,000, every reduction in revenue would require either an increase
in revenue in another General Fund area or further reductions in expenditures above
the $500,000 in reductions already needed to end Fiscal Year 2008/2009 with an
operating surplus.
Should the City Council grant the fee waivers/reductions as requested, the following
revenue impacts would be realized:
ORGANIZATION FY 2009/2010 FY 2010/2011
La Playa School $2,700 $2,808*
• *City User Fees and Charges are typically increased on an annual basis to account for, at
minimum, cost-of-living-allowances (COLA). In order to address potential COLA increases, the
table above includes a 4% increase to the 2010/2011 estimate.
ATTACHMENTS:
1. Letter dated February 18, 2009 from La Playa School
MOTION:
That the City Council:
City of Culver City, California
City Council Agenda Item Report
A6-3
(1) Approve the fee waiver request as presented; OR
(2) Approve the fee waiver request in the amount of $__________ resulting
in a revised fee of $__________; OR
(3) Deny the fee waiver request (thereby leaving the current fee in the fee
and charges schedule applicable);
AND
(4) (If motion 1 or 2 is adopted) Authorize the City Attorney to review/prepare
the necessary documents including the amended fee amounts authorized by
the City Council; and,
(5) (If motion 1 or 2 is adopted) Authorize the City Manager to execute such
documents on behalf of the City.
.
MEETING DATE: March 9, 2009
AGENDA ITEM : Consideration of Fee Waiver/Reduction Requests from
La Playa Cooperative Nursery School.
ATTACHMENTS
Pages|109| Letter from La Playa Nursery School 1 - 7CoopeR.orw&Tbothe't Seioot
310-8394579
City of Culver City, City Counsel
do City Clerk, Martin Cole
9770 Culver Boulevard
Culver City, CA 90232
February 18, 2009
Dear Sirs,
La Playa Cooperative Nursery School recently received notice that a new fee structure is
being introduced that would increase our fees 400% from $25/day to $100/day. While we
understand that city fees may increase over time, this increase coming mid-year, is
excessive. Our budget for the school year is set to cover the existing fee amount. If these
fees are imposed as of March l s` as indicated by the Department of Parks and Recreation,
it would require drastically increasing tuition for our current families to uncertain effect.
We respectfully propose that La Playa Cooperative Nursery School sign a new agreement
beginning July 1, 2009, agreeing to a fee of $50 per day — a 100% increase. Doubling
our fees will be still be fiscally challenging but we will be able to adjust and
accommodate our tuition and fundraising structure when we write our budget for the
2009-2010 school year.
We recognize that we are asking for special consideration and that we are a heavy user of
the Stone House. However we also contribute many hours of service to help maintain it.
Our families combined put in over 250 hours of maintenance to the building and grounds
each year. We hope that you take these hours of service into consideration when setting
our fee.
La Playa Cooperative Nursery School has served preschool children in Culver City for
over 60 years. Since our parent-participation preschool was started in 1948 we have been
located at Lindberg Park and utilized the Stone House as our preschool facility. For more
than 50 of those years La Playa paid no fees to the city for use of the building. Our first
and only license agreement with the City was signed in 2003 which included an
attachment detailing and describing the maintenance duties we perform in exchange for
the reduced fee (from $50 to $25/day - Attached) We struggle, even within this fee
structure, to maintain competitive preschool rates and quality teachers.
CDIn these severe economic times, we are afraid that many of our families will not be able
to cover a mid-year and unexpected increase in tuition. Some may be forced to find other
preschools, or potentially leave school all together. La Playa would have a difficult time
filling these empty slots at this point in the school year further impacting our budget.
Approximately 80 percent of our 36 families are Culver City residents and plan to attend
CCUSD schools. In our experience, parents who participate in their child's preschool, as
all La Playa parents do, tend to become very involved in PTSA and other school
organizations and committees. We value our experience and interaction with our
children in their pivotal development years and look forward to continuing this
involvement in our children's tenure at CCUSD schools.
We hope that you will appreciate our unique contribution as the only established parent
participation preschool in Culver City and one of the oldest such schools in California.
We want to continue our long standing tradition of community building and high quality
early childhood education and continue to offer parents who wish to be involved with
their child's preschool experience a venue and an opportunity to do just that.
If you have any questions, please contact me at 310-529-4226.
Sincerely,
Maggie Memmott
President, La Playa Cooperative Nursery School
/,-
Attachments:
2003-2004 Lease Agreement.^0-' .
— rtc-4.5-1
Contract No. 2003-152
Page 1
LICENSE AGREEMENT
WITH: La Playa Nursery, Inc.
FOR: License for Temporary Use of Lindberg Park Building
This License is made and entered into by and between THE CITY OF
CULVER CITY, a municipal corporation, hereinafter referred to as "City", and LA
PLAYA NURSERY, INC., a California non-profit corporation, hereinafter referred
to as "Licensee".
1. FACILITY LICENSED. City owns and operates the community recreation
center, which includes a large recreation room, kitchen and office at
Lindberg Park, 5041 Rhoda Way, Culver City (collectively, the "Facility").
During Monday through Friday, form 8:00 a.m. through 1:00 p.m., City
agrees to grant Licensee permission to use the Facility for the sole
purpose of conducting a program for children ages 2 through 5 years of
age and their families known as "La Playa Nursery School, as more
specifically set forth in Exhibit A.
2. TERM OF LICENSE. Unless terminated as provided herein, the term of
this License shall be from July 1, 2003 through June 30, 2004; provided,
that the parties agree this License shall automatically be extended for
additional one-year periods unless City provides Licensee with one
hundred twenty-days' (120-days') written notice of City's determination, in
the exercise of its sole governmental discretion, the Facility is needed by
City for public use which would be incompatible with Licensee's continued
use; and provided, further, that City may increase the fee paid by the
Licensee, pursuant to Paragraph 3, for any extended period, but only
upon one hundred twenty-days' (120-days') written notice to Licensee of
such fee increase.
3. PAYMENT FOR LICENSE. In addition to the other consideration
described below, Licensee shall, on or before the first day of each month,
pay City Twenty-five Dollars ($25.40) per day or portion thereof for use of
the Facility. Such payment shall be in advance for the use of the Facility
for the month within the payment is made. Any amount invoiced and not
paid within thirty (30) days shall be considered late and shall accrue a late
payment penalty of ten percent (10%) of the outstanding balance (plus
penalty, if any) for each month or part thereof the outstanding balance
(plus penalty, if any) remains unpaid.
4. HOLD HARMLESS. Licensee shall be responsible for any and all injuries
to or death of any person, and for any and all damage to any and all real
or personal property, including the Facility, caused by or resulting from
any acts, errors or omission of Licensee, its employees, offieers, invitees
or its agents arising out of this License. Licensee shall defend, holdPage 3
13. APPLICABLE LAWS, CODES AND REGULATIONS. Licensee shall
comply with all applicable laws, codes and regulations.
14. MODIFICATION OF LICENSE. This License may not be modified, nor
may any of the terms, provisions or conditions be modified or waived or
otherwise affected, except by a written amendment signed by all parties
hereto.
15. RIGHT TO TERMINATE. Either party, in its sole discretion, may
terminate this License at any time, with cause, on thirty-days' (30-days')
written notice to the other party.
16. NOTICES. All notices given or required to be given pursuant to this
License shall be in writing and may be given by personal delivery or by
mail. Notice sent by mail shall be addressed as follows:
To City:
To Licensee:
City of Culver City
Attention: Parks, Rec. and Comm. Services. Dir.
P. O. Box 507
Culver City, California 90232-0507
La Playa Nursery Inc.
Attention: Betty Ruth Hollensteiner, Director
P.O. Box 3464
Culver City, CA 90230
17. WAIVER. If at any time one party shall waive any term, provision or
condition of this License, either before or after any breach thereof, no
party shall thereafter be deemed to have consented to any future failure of
full performance hereunder.
18. GOVERNING LAW. The terms of this License shall be interpreted
according to the laws of the State of California. If litigation arises out of
this License for the performance thereof, then venue shall be in the
Superior Court of Los Angeles County.
19. CITY RIGHT TO ENTER FACILITY. City shall retain the right to enter the
Facility at any reasonable time for the purpose of inspecting the Facility.
20. LITIGATION FEES, If litigation arises out of this License for the
performance thereof, then the court shall award costs and expenses,
including attorney's fees, to the prevailing party. In awarding attorney's
fees, the court shall not be bound by any court fee schedule but shall
award the full amount of costs, expenses and attorney's fees paid or
incurred in good faith.
21. INTEGRATED AGREEMENT. This License represents the entire
Agreement between City and Licensee, and all preliminary negotiations
and agreements are deemed a part of this License. No verbal agreementDated:0
CITY OW CULVER CITY, CALIFORNIA
I Jerry Piiwood
if Chief Administrative Officer
Dated:
cp,„
Don Rogers;
Parks, Rec. an Co. Ser. Dir
or implied covenant shall be held to vary the provisions of this License.
This License shall bind and inure to the benefit of the parties to this
License, and any subsequent successors and assigns. If any conflict
arises between this , License and any incorporated provisions of the
proposal, then the temis of this License shall control.
22. SEVERABILITY. If any section, paragraph, sentence, clause, phrase or
portion of this Licenpe is deemed invalid, then that invalidity shall not
affect the validity of t e remainder of this License.
23. EFFECTIVE DATE. The effective date of this License is the date it is
signed on behalf of City, and shall remain in full force and effect until
amended or termin ted; provided, that the indemnification and hold
harmless provisions hall survive the termination.
LA PLAYA NURSERY, INC.
By: 1 _ti, 7 t ,
e1/2/ c71-_et ,u.A
Betty uth Hollens ein;rDirector
Dated: Oci- I
By: U
r-,,% t'‘ C-
Its 1,-->--re-.):44_
APPROVED AS TO CONT NT: APPROVED AS T91FORM:
PI 4: ," „ .
, '''' . j rolAl Schwab,
k sr . f. :,,, —6.11. 4,1"—,----
C,
City Attorney
Page 4PAGE 1 of 1
Contract No. 2003-152
EXHIBIT A
CITY OF CULVER CITY
WITH: La Playa Nursery, Inc.
FOR: License for Temporary Use of Lindberg Park Building
SCOPE OF USE
Licensee shall use the Facility in accordance with all the following:
I. Minimum Daily Services:
A. Provide satisfactory staff supervision for children at all times during
program hours and participating children are present at the Facility and
park. Such supervision shall be provided at a ratio of at least 1 adult staff
member for up to no more than each 10 children.
B. Ensure all staff members have been fingerprinted prior to commencing
any contact with children at the Facility.
C. Check students in and out through use of a daily sign in/out sheet.
D. Provide supplies and materials needed for the programs conducted at the
Facility during program hours.
E. When using the Facility, sweep floor of all debris twice a day.
F. When using the Facility, pick up trash and empty trash cans.
G. When using the Facility, keep kitchen area clean and counters wiped.
H. When using the Facility, keep refrigerator neat and remove food items, as
appropriate.
I. When using the Facility, maintain the stove, oven, refrigerator, sand box,
outdoor children's picnic tables and wood benches.Contract No. 2003-152
J. When using the Facility, rake leaves as necessary.
2. Minimum Annual Services:
A. Provide four (4) clean-up days (one each quarter unless needed more
often) to include thorough cleaning of the kitchen restroom areas.
B: Maintenance of storage used by Licensee at the Facility and removal of
old, inoperable or useless equipment.