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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 4/1/2003 * PLEASE NOTE: Since the Glendale City Council does not take formal action at the Workshops, Workshop minutes are not approved by the City Council. MINUTES CITY OF GLENDALE CITY COUNCIL WORKSHOP April 1, 2003, 2003 1:30 p.m. PRESENT: Mayor Elaine M. Scruggs, Vice Mayor Thomas R. Eggleston, and Councilmembers Joyce V. Clark, Steven E. Frate, David M. Goulet, H. Phillip Lieberman, and Manuel D. Martinez ABSENT: ALSO PRESENT: Ed Beasley, City Manager; Pam Kavanaugh, Assistant City Manager; Rick Flaaen, City Attorney; and Pamela Hanna, City Clerk Vice Mayor Eggleston chaired the meeting until Mayor Scruggs arrived prior to item 2 commencing. 1. PARKS AND RECREATION FACILITIES & PROGRAM FEE ADJUSTMENTS CITY STAFF PRESENTING THIS ITEM: Mr. Warren Smith, Parks and Recreation Director and Mr. Richard Cardin Jr., Parks and Recreation Deputy Director This is a request for City Council to review and provide direction on proposed user fees for parks and recreation facilities and programs. On June 18, 2002, City staff and the consultant firm of Leon Younger and PROS presented a comprehensive fee philosophy and model for City Council review. This model was the culmination of 10 months of research, analysis and review by staff and the Parks and Recreation Commission. The model will serve as a guide for recommending recreation fees and charges for current and future programs. The Parks and Recreation Master Plan adopted by the City Council in February 2002 contained 24 strategies required to develop a sound recreation business plan. One of the strategies recommended the development of a pricing policy and philosophy for recreational programs and facilities. The current pricing philosophy was adopted by the City Council in 1988. The user fee for programs and facilities funded by the general fund has not been adjusted in 15 years. This fee model is designed to bring our pricing to a comparable level with other Valley cities through a pricing strategy that determines fees based on the benefit the program or service provides to the individual participant. The recommended user fees based on the model presented at the June 18, 2002, workshop are shown in Attachment #1 by category. Each pricing category incorporates the underlying principle of the program model as well as the recommended tax subsidy 1 level. The five categories are: 1. Fixed recreation programs, parks and facilities (what the Glendale community expects the City to provide.) Fees are set to recover less than 25% of direct cost. 2. Core programs for parks and facilities (baseline level of service). Fees are set to recover 25% of direct cost. 3. Tiered services for programs and facilities (tiered services are incorporated into core programs to expand demographic appeal). Fees are set to recover 50% of direct cost. 4. Revenue centers and programs (services and facilities that recover up to 100% of direct and up to 100% of indirect costs). Fees are set to recover 100% of direct cost. 5. Partnership pricing development for Public/Public, Public/Non-For-Profit, Public/Private. Fees are mutually agreed upon. The new pricing includes a 20% surcharge for non-residents and 50% increase for commercial users of city services and facilities. This item was discussed at the Parks and Recreation Commission meeting on February 10, 2002, and the commission voted unanimously to recommend adoption of the user fees. Staff is requesting permission to implement the fees as shown in Attachment #1. Fee increases that appeared to be significant will be phased in over a three-year period to minimize a loss of participation and to minimize hardship on residents created by the additional fee. The fee model was presented to the City Council at workshop on June 18, 2002. Staff was directed to consider and incorporate council comment and apply the model to current programs and facilities. Staff has worked with management and budget on the methodology for the pricing model. Prior to fee implementation, a marketing campaign will be initiated to raise public awareness about the true value and benefits of the programs, services and facilities. The summer quarterly magazine will convey the rationale for the new pricing schedule. Initial staff estimates of the fee adjustments will result in a year one revenue increase of approximately $65,000 and year three estimated increase in Parks and Recreation revenue of$375,000 over current registration revenues. No new operating funds will be needed to implement the new fee schedule. The current automated registration program will accommodate the new fees. The recommendation was to review the proposed user fees and direct staff to begin implementation. In response to Councilmember Frate's question, Mr. Cardin stated the Activity Based Costing sheets will be updated on an annual basis to ensure the fees reflect the true costs for providing the programs. 2 Councilmember Goulet asked if the programs being offered have changed in any way. Mr. Smith responded no. Councilmember Goulet asked how staff determines when a program is no longer needed and how it eliminates a program from the budget. Mr. Smith said approximately 70 percent of the programs have been added within the past 10 to 12 years and were structured to recover the incremental costs of the programs. He explained each program and activity is evaluated annually in terms of the number of participants, participation trends, and the participants' level of satisfaction. He said they then make recommendations as to how the programs can be improved, whether additional programs should be implemented the following year or if a given program has met its lifecycle and should be retired. Councilmember Goulet asked how quickly the city could implement a program in response to a growing trend. Mr. Smith stated staff would first discuss whether it would be economical to offer the program and if the program could be priced at a level where it would pay for itself. He stated the city continually seeks best practices and economical opportunities to provide its customer base. Councilmember Lieberman asked Mr. Smith to explain the projected increase in revenue over years one and two for Strategy 2, given the expected 25 percent decrease in participation. Mr. Smith explained participation in year two is expected to decline only 10 percent from the base line year, not in addition to the 15 percent reduction anticipated in year one. Councilmember Lieberman asked if the pricing models take declining economic conditions into consideration, pointing out people have considerably less disposable income. Mr. Smith said, because they cannot predict the impact of the economy, they took special care to make very conservative projections. Councilmember Clark asked if pool registration fees are charged on a one-time basis and good for a specific period of time. Mr. Smith explained the fee is actually an entrance fee and good only for a specific visit. He said, however, punch-passes cover the fee for several visits. Councilmember Clark asked what will it cost a Glendale resident to rent a baseball field on a commercial basis. Mr. Smith said the commercial rate is $7.50 per hour. Councilmember Clark asked why commercial rental of ball fields was placed under Category III at 50 percent of direct costs collected rather than Category IV at 100 percent of the direct costs recovered. Mr. Smith explained Youth Field Rentals is placed in Category III, while Adult Field Rentals is placed in Category IV. He agreed all commercial uses could be charged 100 percent of their direct costs if Council so desires, explaining Youth Field Rentals would then be moved into Category IV. Councilmember Clark expressed her opinion commercial/for-profit organizations should be responsible for 100 percent of their costs. In response to Vice Mayor Eggleston's question, Mr. Smith explained the city's sports complexes are differentiated from the ball fields which do not offer the same level of amenities. 3 Councilmember Clark asked if the same philosophy will be applied to other commercial/for-profit recreation activities that use the city's facilities. Mr. Smith responded yes. Councilmember Clark asked if the city is able to track whether those using the fields have paid the applicable rental fee. Mr. Smith explained the city only reserves facilities located in a community park. He said activities that occur in a community park without a permit would be considered an illegal activity. He acknowledged the city has had problems with illegal activities in the past, stating they typically alert park rangers of problems who then cite the individual. He said the cited individual would go to court, at which time the Judge sets a fine. Councilmember Frate thanked staff and Commission members for their hard work. He pointed out the Commission has teen members who agreed the fees are fair and equitable. He said the city offers various forms of assistance that should make the programs accessible to everyone. He expressed his opinion staff identified the true costs of the programs and the increases are fair and overdue. Councilmember Martinez agreed the rates are fair and in keeping with the costs associated with the programs. He expressed his opinion, however, the increase in aquatic's fees seems quite large. Mr. Smith explained, in order to minimize liability, the city requires aquatic facilities to hire certified lifeguards or pay the city for the use of its lifeguards during an event. Councilmember Martinez suggested they increase the fee for beer permits to $10.00. Councilmember Clark recommended they only increase the cost to $10.00 for non-residents. Council agreed. Mr. Smith confirmed for Councilmember Martinez that some little league teams are considered commercial organizations. Councilmember Martinez agreed commercial teams should be charged a higher rate. Councilmember Clark asked what new strategies will be employed with regard to the scholarship program. Mr. Smith said the Workreation program is a scholarship program, but goes further by encouraging volunteerism and possibly acting as a training ground for future city employees. He said they intend to increase awareness of the program through improved marketing efforts. Councilmember Clark said she knows parents who cannot afford to send their children to public pools and who are not likely to get involved in the Workreation program. She stated the Scholarship Program is important to address the children who fall within this group. Councilmember Frate pointed out the city has never failed to provide scholarships to those in need. He agreed advertising for the program should be enhanced. 4 Councilmember Martinez asked if the city offers a family rate. Mr. Smith pointed out recreation centers do not charge an entrance fee. He said, however, a family rate is not available with regard to the city pools. Vice Mayor Eggleston summarized Council's consensus that the city should recover 100% of the cost of commercial activities and that the beer permit fee for non-residents should be increased to $10.00. The meeting recessed for a short break. 2. ITEMS OF SPECIAL INTEREST TO COUNCIL CITY STAFF PRESENTING THIS ITEM: Mr. Ed Beasley, City Manager This item is being placed on the agenda to provide members of the City Council an opportunity to identify an item of special interest that they would like considered for possible future workshop discussion. All identified items will be referred to the City Manager for an initial assessment of the time and resources needed to bring a full report forward for Council consideration and direction. The City Manager will report back to the Council with an assessment of the item being asked for consideration. The item will be specifically posted on the agenda so that discussion may take place by the full Council and direction may be provided to the City Manager regarding whether future study and/or a full report is warranted. At the request of City Council, this item is being placed on the first workshop agenda of each quarter. The recommendation was to identify items of special interest for referral to the City Manager. Councilmember Goulet stated he previously suggested the city plan various family activities in the downtown area to help stimulate business. Mayor Scruggs directed Mr. Beasley and his staff to prepare cost information for special downtown events. Councilmember Martinez reported receiving a letter from the Glendale Sister Cities organization, asking Glendale to take a more active role in the program. He suggested staff further research the issue and determine whether it would be beneficial for the city to increase its participation in the program. ADJOURNMENT The meeting was adjourned at 2:45 p.m. 5