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HomeMy WebLinkAboutAgenda Report - March 16, 2016 C-11TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM AGENDA TITLE: Adopt Resolution Setting Parks, Recreation and Cultural Services Fees MEETING DATE: March 16, 2016 PREPARED BY: Parks, Recreation and Cultural Services Director RECOMMENDED ACTION: Adopt resolution setting Parks, Recreation and Cultural Services fees. BACKGROUND INFORMATION: Parks, Recreation and Cultural Services requests Council adopt two user fee increases due to higher Department costs. The first, affecting swimming fees at the Hutchins Street Square pool, is mostly related to the increase in the State minimum wage that took effect January 1. The second would create a combined vehicle entrance and boat launch fee of $13 at Lodi Lake Park to help the Department meet the 20 -year maintenance obligation of a State grant that is paying for a vastly improved boat ramp, dock and parking areas. The current maximum launch and entrance fee ranges from $7 to $10. On February 2 and March 1, the Recreation Commission voted 5-0 both times to recommend the City Council adopt the fee increases. There was no public opposition. Hutchins Street Square Pool fees Currently, approximately 95 percent of class users purchase a 15 -use pass. The fee ranges from $40 for senior residents to $63 for nonresident adults. Single -class users pay from $3.50 to $5, based on age and residency. Evening family swim costs $2 per participant. The State minimum wage increased January 1, 2016, to $10 an hour. Many part-time PRCS employees are paid on a scale at or near that point. With the increase in the minimum wage, the cost of operating our aquatics programs increased by 11 percent in January. Employees earning $9 an hour received a $1 -per -hour increase, while those earning $12 last year are now earning $13.33 an hour. For the Hutchins Street Square Pool, this means an increase in labor costs of approximately $2.50 per class, or about $375 a month and about $4,250 a year. In the meantime, the typical pool user's fee of $2.66 per visit is vastly lower — in some cases less than half -- than what is charged by similar facilities. Hutchins Street Square pool fees have not increased since 2012, while the minimum wage has increased twice. The Department's goal is to at least recover the labor costs associated with pool activities, but the recovery rate is less than 50 percent at this time. Rather than recommending an increased price of the 15 -visit pass, the Recreation Commission backs a 10 -swim pass for classes, and a flat $5 single -visit fee to simplify payment for participants and pool staff. The fee for family swim would not change. Tables illustrating current and proposed rates are below. APPROVED: Ste Schw , City Manager Adopt Resolution Setting Parks, Recreation and Cultural Services Fees March 16, 2016 Page 2 Current rates Resident Non-resident 18-59 15 -swim pass $58 60-up/disabled $40 Single -visit class Family swim $4.75 $2 $3.50 $2 18-59 $63 $5 $2 60-u •/disabled $45 $3.75 $2 Proposed rates 10 -swim •ass Single -visit class Family swim Resident Non-resident 18-59 1 60-up/disabled $40 $35 18-59 60-up/disabled $50 $45 $5 ! $5 $2 $2 $5 $5 $2 $2 Boat launch fee Reconstruction of a new boat launch, dock, parking and related facilities began on January 20. A $710,000 grant from the State of California's Division of Boating and Waterways is offsetting most of the expense. Below -waterline work took place in February, and project is scheduled for completion in May. The grant agreement states the City may charge a fee sufficient to defray costs of operating and maintaining the project, but at a maximum of $13 for any combination of vehicle entrance and launch fees. The Recreation Commission unanimously recommends we charge that amount for all launch users, and that the annual vehicle pass should not apply to those launching boats. The Lodi Lake boat launch fee of $5 has not changed since 1988, when it was increased from $4. Improved facilities and amenities justify a higher fee. In addition to supporting the fee increase, the Commission also voted unanimously to recommend the Council discontinue the annual pass after only four were purchased in 2015. FISCAL IMPACT: Approximately $7,500 in new pool revenue, with an operational facility, and $12,000 in additional boat launch revenue. FUNDING AVAILABLE: Not applicable. JH:tI cc: City Attorney Jeff Hoo Park , ' ecreation and Cultural Services Director RESOLUTION NO. 2016-41 A RESOLUTION OF THE LODI CITY COUNCIL SETTING PARKS, RECREATION AND CULTURAL SERVICES FEES WHEREAS, the Parks, Recreation and Cultural Services Department regularly examines its department fees to ensure they reflect a balance of market rates and cost - recovery objectives; and WHEREAS, the proposed fees, which received unanimous Recreation Commission support, were determined through a combination of staff recommendations, public comment and Commission debate. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the revised fees for the Hutchins Street Square pool and Lodi Lake combined vehicle entrance and boat launch, as follows: Hutchins Street Square Pool Fees: Resident Non -Resident 18-59 60-up/disabled 18-59 60-up/disabled 10 -swim pass $40 $35 $50 $45 Single -visit class $5 $5 $5 $5 Family swim $2 $2 $2 $2 Lodi Lake Combined Vehicle Entrance and Boat Launch Fee: $13 BE IT FURTHER RESOLVED by the Lodi City Council that the above -referenced fees shall take effect upon adoption of this Resolution. Dated: March 16, 2016 hereby certify that Resolution No. 2016-41 was passed and adopted by the City Council of the City of Lodi in a special meeting held March 16, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None 4 NNIFER M. FERRAIOLO City Clerk 2016-41