City of Culver City, California
City Council Agenda Item Report
Meeting Date: 03/09/09 Item Number: A-3_
AGENDA ITEM: Approval of Amendments to License Agreements Existing as of
November 1, 2008 for Use of the Municipal Plunge to Provide Graduated
Implementation of Increases to the Aquatic Fees.
Contact Person/Dept.: Pam Robinson,
Recreation Manager
Phone Number: (310) 253-6655
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); E-mail Notification to Pool
User and Sports Groups (03/04/09)
Department Approval:
Bill La Pointe, PRCS Director (02/26/09)
City Attorney Approval:
Carol Schwab (by H. Baker) (3/03/09)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball) (03/04/09)
City Manager Approval:
Jerry B. Fulwood (03/04/09)
RECOMMENDATION:
Staff recommends the City Council approve amendments to license agreements
existing as of November 1, 2008 for use of the Municipal Plunge to provide a
graduated implementation of newly adopted aquatic fees.
BACKGROUND:
On November 10, 2008 the City Council considered and adopted increased fees for
use of the Municipal Plunge (Plunge) with the new fees taking affect on March 1,
2009. These new fees, designed to bring Culver City closer to the ‘market rate’ for
similar facilities and increase the cost recovery of the Plunge, marked the first
significant increase in many years. Nonprofit organizations saw an increase of
nearly 30% over what they were currently paying and commercial entities saw an
increase of up to 240% over their existing rates. Excerpted minutes from this
meeting are provided as Attachment 1.
DISCUSSION:
Since the approval of these revised fees, the local, state, national and world
economies have been experiencing dramatic changes. Staff has been approached
by leaders of the many groups that regularly contract with the City for use of the
Plunge voicing concerns about the impact of the new fees given the current
economic conditions. Groups expressed particular concern about the financial
burden to their organization or business given the unexpected mid-year restructuring
of the fee schedule. Further they felt that passing the increase in operating costs on
to their participants mid-year would be difficult given the current economic climate.
City of Culver City, California
City Council Agenda Item Report
By gradually implementing the new fees during these fiscally challenging times, the
City may be better positioned to retain these licensees while simultaneously moving
towards achieving the adopted fees in two to three (2-3) years time.
As such, staff is requesting that the City Council approve amendments to the
existing license agreements with these organizations to provide the following:
a) A graduated implementation of the fee increases for nonprofit, private party
and commercial rentals with whom the City has existing license agreements
as of November 1, 2008 (“Existing Licensees”);
b) Commencement of the implementation of the graduated fees for Existing
Licensees on July 1, 2009 in accordance with the adoption of the User Fees
and Charges Schedule included in the Annual Budget; and
Staff would continue to apply the fees outlined in the User Fees and Charges
(revision adopted November 10, 2008) to all licensees with whom the City did not
have an existing agreement on November 1, 2008 with no graduated
implementation schedule.
If Council approves the graduated fee increases for Existing Licensees, staff
recommends that such graduated fee increases be implemented as follows:
• The fee increase for Existing Licensees, which are nonprofit organizations, be
phased in over a two-year time period; with the first phase being a 30% increase
in FY 2009-10 and the remaining 70% increase in FY 2010-11.
• The fee increase for Existing Licensees, which are private parties and
commercial groups, be phased in over a three-year time period; with the first
phase being a 30% increase in FY 2009-10, 35% increase in FY 2010-11 and
the remaining 35% increase in FY 2011-12.
• No new special events (after July 1, 2009) by Existing Licensees will be given the
graduated fees; these events will be charged the prevailing rate identified in the
User Fees and Charges Resolution.
City of Culver City, California
City Council Agenda Item Report
Fee Category
11/10/08
Adopted Fee
(effective 3/01/09)
Year 1: %
increase
Fee: Year 1
(2009-10)
Year 2: %
increase
Fee: Year 2
(2010-11)
Year 3: %
increase
Fee: Year 3
(2011-12)
Hourly Rental: Non-profit
Resident $ 114 30% $ 100 70% $ 125
Hourly Rental: Non-profit
Non-Resident $ 127 30% $ 105 70% $ 140
Hourly Rental: Private Party,
Resident $ 152 30% $ 115 35% $ 145 35% $ 175
Hourly Rental: Private Party,
Non-Resident $ 169 30% $ 120 35% $ 155 35% $ 190
Rental: Private Commercial,
Resident $ 191 30% $ 125 35% $ 170 35% $ 215
Hourly Rental: Private
Commercial, Non-Resident $ 212 30% $ 135 35% $ 185 35% $ 240
*Fees have been rounded for simplicity
Staff is recommending that the fee increases for Existing Licensees, which are
private parties and commercial groups, be phased in over a longer period of time
given the more significant fee increases affecting these groups.
It should also be noted that 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 “11/10/08 Adopted Fee” in each of the fiscal years over which the graduated
fees will be implemented (thus the end fee for each category is higher than the figure
in the 11/10/08 Adopted Fee column). If the City COLA were to be changed, the
fees noted would be adjusted where appropriate. As the economy and the City are
of course dynamic in nature, additional revisions to the schedule proposed above
would be considered annually during the budget process.
The following organizations and businesses had existing license agreements with
the City as of November 1, 2008 and would therefore be eligible for the graduated
fee implementation schedule noted in the above table.
• Culver City Swim Club
• Eco Dive Center
• Leukemia and Lymphoma Society - Team in Training
• Notre Dame Academy
• Old Boys Water Polo
• Royal Swim Team
• Sirius Athletes
• Southern California Aquatics (SCAQ)
• Team Santa Monica
• Vixen Training
City of Culver City, California
City Council Agenda Item Report
Amendments to the agreements for the Existing Licensees would be prepared
consistent with Council’s direction.
FISCAL ANALYSIS:
Staff estimates that delaying the implementation of the Revised Aquatic Fees
adopted by the City Council on November 10, 2008 from an effective date of March
1, 2009 will result in approximately $7,800 of unrealized projected revenue.
However, as the fee revisions were adopted after the fiscal year was already
underway, this revenue was not anticipated (i.e.: budgeted) during the 2008-09
Fiscal Year.
ATTACHMENTS:
1. Excerpt of the Minutes of the November 10, 2008 City Council Meeting
MOTIONS:
That the City Council:
1. Approve amendments to the license agreements existing as of November 1,
2008 for use of the Municipal Plunge to provide a graduated implementation
of newly adopted aquatic fees, consistent with this report; and
2. Authorize the City Attorney to review/prepare the necessary documents and
authorize the City Manager to execute such documents on behalf of the City.
or
3. Direct staff to implement the Municipal Plunge User Fees Adopted on
November 10, 2008 without a graduated fee schedule with an effective date
of March 1, 2009 for all groups;
or
4. Provide staff with alternate direction.
MEETING DATE: March 9, 2009
AGENDA ITEM: Approval of Amendments to License Agreements
Existing as of November 1, 2008 for Use of the Municipal
Plunge to Provide Graduated Implementation of
Increases to the Aquatic Fees.
ATTACHMENTS
Page
1. Excerpt of the Minutes of the November 10, 2008 City
Council Meeting
1
EXCERPT OF THE MINUTES OF THE
REGULAR MEETING OF THE November 10, 2008
CITY COUNCIL, CITY OF CULVER CITY, CALIFORNIA 6:02 p.m.
Call to Order & Roll Call
The meeting of the City Council was called to order at 6:02 p.m.
Present: D. Scott Malsin, Mayor
Gary Silbiger, Vice Mayor
Christopher Armenta, Councilmember
Micheál O‘Leary, Councilmember
Andrew Weissman, Councilmember
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--------------------------EXCERPT BEGINS--------------------------
Item A-3
Adoption of a Resolution Establishing New Aquatic Fees and
Rescinding that Portion of Exhibit F-1 of Resolution No. 2008-R048
Which Established the 2008-2009 Aquatic Fees
Staff provided a summary of the material of record.
The following member of the audience addressed the City Council:
Clay Evans, Culver City Swim Club
Discussion ensued between the City Council and staff regarding
making the City more competitive with other cities and able to
provide quality lifeguard services; the distinction between non-
profit charitable and public non-profits; meeting with user groups
to discuss rates; whether some of the rates were raised a little too
high; rates of usage by residency status; and adding a recreation
swim pass for youth.
Martin Cole, Assistant City Manager/City Clerk read written comments
submitted by the following: Reid Freiheit
The following motion was made:
MOVED BY COUNCILMEMBER O’LEARY, SECONDED BY COUNCILMEMBER WEISSMAN
AND UNANIMOUSLY CARRIED, THAT THE CITY COUNCIL ADOPT RESOLUTION NO.
2008-R078 ESTABLISHING NEW AQUATIC FEES AND RESCINDING THAT PORTION
OF EXHIBIT F-1 OF RESOLUTION NO. 2008-R048 AS AMENDED WHICH
ESTABLISHED THE 2008-2009 AQUATIC FEES, AND MAKE THESE FEES
EFFECTIVE MARCH 1, 2009.
o0o
----------------------------EXCERPT ENDS----------------------------
ATTACHMENT 1
1