Title
Public Hearing to Consider Adoption of Resolution Amending Master Fee Resolution No. 12191 to Add and Revise Recreation and Park Fees. (Recreation and Parks 280)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City of Alameda (City) Recreation and Parks Department (APRD) annually updates its fees for implementation on January 1. This 2020 fee schedule was reviewed and recommended by the Recreation and Parks Commission on October 8, 2019. Fee increases are proposed for youth and teen programs, athletic field use for youth leagues, Alameda Point Gym use, non-resident rates for picnic areas, and the O’Club. New fees recommended for adoption include an O’Club Saturday night premium rate surcharge, O’Club Garden set up fee, newly available exercise rooms at the Gym, and electricity use for inflatables. Also included are two marketing discount options.
BACKGROUND
On January 22, 1992, the City Council adopted Resolution Number 12191, codifying all fees for services into a Citywide fee schedule (Fee Schedule). This Fee Schedule is updated each year, via resolution, to reflect changes in the cost of providing services as well as in the Consumer Price Index for the San Francisco Bay Area.
The proposed Recreation and Park User Fees (Exhibit 1) are reviewed annually by the City’s Recreation and Park Commission with its recommendation brought forward to the City Council. The ARPD reviewed the current fees and recommended adjustments based on its budget in combination with fee comparisons with other local jurisdictions including San Leandro, Emeryville, Piedmont, Fremont, Union City, and San Ramon, in addition to comparisons for local gym rentals and large rental venues (Exhibit 2). The Recreation and Parks Commission unanimously approved APRD’s proposed adjustments to their User Fees with one amendment, namely to reduce the Gym Tournament hourly rate. That amendment has been incorporated into the proposed ARPD User Fee Schedule.
The Fee Schedule is updated annually as part of the City budget process, which begins July 1. Due to the timing of summer recreation programs, the ARPD User Fee Schedule is adopted earlier, with an implementation date of January 1. However, the school-year fees are noted separately with a start date of August to coincide with the start of the school year. Moreover, the 2019 fees are honored for any facilities that have been booked before January 1, 2020, with a use date in 2020.
DISCUSSION
Fees represent direct costs for program staff time, facility maintenance and utilities, plus indirect costs for administrative staff time and supplies. Fees are intended to recover costs as a whole system while balancing the benefits for the community and individuals. For example, programs that are available to a broad section of the community as well as at-risk populations, such as the free Parks and Playgrounds Program, free Summer Park Baseball, and Mastick Senior Center activities have a lower cost recovery rate than programs with specific group or individual benefit, such as facility rentals, summer camps, or adult sports leagues with a higher cost recovery rate to offset and balance the total budget.
As of July 1, 2020, the City minimum wage will increase from $13.50/hour to $15/hour. With more than 150 part-time staff, this significantly impacts program costs, especially for youth programs such as aquatics, teens, tiny tots, summer and after school programs that have part-time staff providing direct supervision. The City Council approved a transfer increase of the General Fund to the Recreation Fund to partially offset the minimum wage increase with the understanding that the net balance would be generated from at least a 5% increase in user fees. Accordingly, fees for summer and after school youth programs were increased by 5% and group swim lessons increased by 12%. The overall market and cost comparison to relative programs were also considered.
The following fees were adjusted for 2020:
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PROPOSED CHANGES TO EXISTING FEES |
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FEE TYPE |
CURRENT 2019 FEES |
PROPOSED 2020 FEES |
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Athletic Field Youth League - Non-Profits |
$5 / Hour |
$6 / Hour |
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This fee is being incrementally increased each year by $1 to improve cost recovery of field maintenance and supplies such as fertilizer, infield dirt, equipment maintenance and water costs. |
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Alameda Point Gym |
Alameda youth/school $30 / hr Resident & Non-Res youth $45 / hr Non-Resident $55 / hr |
Alameda youth /school Practice: $30 / hr Game: $40 / hr Tournament: $45 / hr Resident & NR youth org: $60 / hr Non-Resident: $70 / hr |
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Alameda is significantly lower than any comparison to local gym rental and previously has not separated costs based on use types. Games bring a larger number of people to the gym and tournaments host a very large number of spectators and players. Both have larger cost impacts to the City than practices. Additionally, the youth organizations charge a door fee for games and a door fee and registration fee for tournaments. Gym fees were last increased in 2013. |
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Recreation Center & Picnic Rentals |
Varying |
Rounded up to the nearest $5 |
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The rounding provides streamlined customer service because odd numbers are more difficult for customers to remember, which often creates more questions and increased staff time. |
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Picnic Rentals - Non-Resident |
Small Area $43 / hour Medium Area $67 / hour Large Area $103 / hour |
Small Area $55 / hour Medium Area $85 / hour Large Area $135 / hour |
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This is a 22% increase that assists with recovering costs of ARPD’s scheduling and Park Monitors who put out reservation signs and manage trash pick-up and a clean park area. Resident rates were not increased. Also, changed the definition of a Large Group to 50 or more (reduced from 75 or more), which better reflects actual impacts on parks. |
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O’Club Rentals - Non-Resident |
Main Room $216 / hour Trident Room $185 / hour Terrace Room $155 / hour Squadron Room $93 / hour |
Main Room $240 / hour Trident Room $205 / hour Terrace Room $170 / hour Squadron Room $105 / hour |
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This is a 10% increase to recover costs for facility attendants, utilities, and janitorial services. Resident rates were not increased. |
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O’Club Rentals - Set-up |
$155 / event |
$175 / event |
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This includes rental costs for the event tables and chairs, which are set up by an outside contractor managed by the City. This increase covers the contractor costs. |
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Youth Programs |
5% increase: • Recreational After School Program (RAP) • World of Wonder (WOW) and Day Camp • Break Camps 20% increase: • Group Swim Lessons |
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The large majority of part-time staff are in ARPD Youth Programs. Increased fees help offset the increase in minimum wage as well as other rising costs for supplies and facilities. Youth group swim lessons were increased 20% because it was under current market rate with long waiting lists every summer. |
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NEW PROPOSED FEES |
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FEE TYPE |
CURRENT 2019 FEES |
PROPOSED 2020 FEES |
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Gym Rooms A,B,C |
n/a |
A&B (500 sf): $35 / hr C (700 sf): $50 / hr |
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These are newly available rooms that will be utilized for ARPD classes and may be rented out to user groups, either during tournaments or for separate groups such as a martial arts or dance group. |
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Electricity Use |
n/a |
$20 / day |
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In its effort to continue making green infrastructure improvements, ARPD added publicly available (although locked for rental use) electrical outlets at Franklin Park instead of rented generators. It is being explored for use at other parks as well. |
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O’Club Saturday Event Rental |
n/a |
Regular rate plus 15% |
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Saturdays are generally filled one year out and this surcharge reflects that demand and is intended to encourage users to consider Friday and Sunday events instead. |
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O’Club Garden Set-Up |
n/a |
$250 / event |
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There is already a set-up fee for inside the facility, which covers the cost for an outside contractor to set up all tables and chairs as specified and includes the rental and use of those tables and chairs. The garden set-up fee is to cover costs when the outside rose garden is used for a ceremony. It’s a more difficult and time consuming set up and, therefore, a higher rate. |
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Discount options |
n/a |
Early Bird: 10% off Bring-a-Friend: $15 - $25 voucher |
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These are new discounts that ARPD staff will apply for specific marketing outreach efforts with the goal to increase overall registration counts. |
The overarching goal of the ARPD User Fee Schedule is to provide effective cost recovery with a balanced model of community benefit. The ARPD continues to seek and secure additional program and facility funding through partnerships, grants, donations and fundraising events.
ALTERNATIVES
• Approve the 2020 ARPD User Fee Schedule as presented
• Make adjustments to any of the new and changed fees presented. If the ARPD User Fee Schedule is not approved, it will negatively impact the Recreation Fund as the anticipated revenues from this proposed User Fee Schedule were included in the Fiscal Year 2019-21 Budget.
FINANCIAL IMPACT
The Fee Schedule changes are intended to offset expenses as described above and are included in the approved Fiscal Year 2019-21 Budget.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action is not a project and is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15378 (b)(4) of the CEQA Guidelines, because it involves governmental fiscal activities (revising recreation and park fees), which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
CLIMATE IMPACTS
Most of these fee adjustments do not have a climate impact with the exception of the Electricity Use Fee. Currently, any park picnic rentals that bring in an inflatable jumper use diesel generators from the inflatable companies. ARPD installed a publicly available electrical outlet at Franklin Park for the specific purpose to require users to use the electricity instead of the generator. ARPD staff are exploring options at other parks and will add electrical outlets for as many inflatable areas as is feasible.
RECOMMENDATION
Following the close of the public hearing, consider adoption of a resolution amending Master Fee Resolution No. 12191 to add new and revise existing Recreation and Park Fees. (Recreation and Parks 280)
CITY MANAGER RECOMMENDATION
The City Manager concurs with the Recreation and Parks recommended fees as amended at the Recreation and Parks Commission meeting.
Respectfully submitted,
Amy Wooldridge, Recreation and Parks Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. 2020 Recreation and Parks User Fee Schedule
2. Comparison Study
cc: Eric Levitt, City Manager