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Title:
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Consideration of Recommendation to City Council Regarding Graduated Implementations of Newly Adopted Aquatic Fees for Contracted Groups Utilizing the Municipal Plunge.
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City of Culver City, California
Parks and Recreation Commission Agenda Item Report
Meeting Date: 03/03/09 Item Number: A-3
AGENDA ITEM: Consideration of a Recommendation to City Council Regarding
Graduated Implementation of Newly Adopted Aquatic Fees for Contracted Groups
Utilizing the Municipal Plunge.
Contact Person/Dept.: Pam Robinson,
Recreation Manager
Phone Number: (310) 253-6632
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: []
Public Notification: E-mail Notification to Pool User and Sports Groups (02/26/09); PRCS
E-mail Master Notification List (02/26/09)
Department Approval: Bill La Pointe,
PRCS Director (02/25/09)
City Attorney Approval: N/A
Fiscal Impact Approval: N/A City Manager Approval: N/A
RECOMMENDATION:
Staff recommends that the Parks, Recreation and Community Services (PRCS)
Commission consider making a recommendation to City Council regarding the
Graduated Implementation of Newly Adopted Aquatic Fees for Contracted Groups
Utilizing the Municipal Plunge.
BACKGROUND:
On November 10, 2008 the City Council considered and adopted increased fees for
use of the Municipal Plunge (Plunge) fees 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.
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 by restructuring the fee schedule mid-year;
a cost that would need to be passed on to their participants’ mid-year in order to
address the increase in costs.
City of Culver City, California
Parks and Recreation Commission Agenda Item Report
By gradually implementing the new fees during these fiscally challenging times, the
City may be better positioned to retain these rental groups while simultaneously
moving towards achieving the adopted fees in two to three (2-3) years time.
As such, staff is recommending the user fees adopted for the Municipal Plunge be
amended to: 1) Provide for a graduated implementation of the fee increases for
nonprofit, private party and commercial rentals; 2) Commence implementation of the
graduated fees on July 1, 2009 in accordance with the adoption of the User Fees
and Charges Schedule included in the Annual Budget.
Staff further recommends that the fee increases be implemented as follows:
• The fee increase for rentals by 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 rentals by 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.
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 (TBD) (TBD)
Hourly Rental: Non-profit
Non-Resident $ 127 30% $ 105 70% $ 140 (TBD) (TBD)
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 rentals by 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 City of Culver City, California
Parks and Recreation Commission Agenda Item Report
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.
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 revenue. However, as the
fee revisions were adopted once the fiscal year was already underway, this revenue
was not anticipated (i.e.: budgeted) during the 2008-09 Fiscal Year.
ATTACHMENTS:
None
MOTION:
That the Parks, Recreation and Community Services Commission:
1. Recommend to the City Council that implementation of the Municipal Plunge
User Fees Adopted on November 10, 2008 be applied via a graduated fee-
schedule over two (2) years for contracted nonprofit user groups and three (3)
years for contracted private party and commercial user groups;
and
2. (If Motion 1 is approved) That Municipal Plunge user groups continue to pay
the rates identified in their contract as of February 1, 2009 for the remainder
of the 2008-09 FY;
or
3. Recommend to the City Council that implementation of the Municipal Plunge
User Fees Adopted on November 10, 2008 be applied without a graduated
fee schedule with an effective date of March 1, 2009;
or
4. Provide staff with an alternate recommendation or additional comments.