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HomeMy WebLinkAboutMinutes - July 30, 2019 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, JULY 30, 2019 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, July 30, 2019, commencing at 7:18 a.m. Present: Council Member Johnson, Council Member Mounce, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and Mayor Chandler Absent: None Also Present: City Manager Schwabauer, Deputy City Attorney Fukasawa, and City Clerk Ferraiolo NOTE: Council Member Mounce participated in the meeting via teleconference. B. Topic(s) B-1 Parks, Recreation and Cultural Services Cost Recovery Approach, Methodology, and Model (PRCS) Deputy Parks, Recreation and Cultural Services (PRCS) Director Cathi DeGroot provided a PowerPoint presentation regarding a cost-recovery approach. Specific topics of discussion included need for a cost-recovery approach; pyramid methodology; benefit filters: mostly community benefit, considerable community benefit, balanced individual/community benefit, considerable individual benefit, mostly individual benefit; project approach and steps; "Fees and Charges" document; and scholarship program. Council Member Mounce requested staff provide Council with a list of agencies that have implemented this type of cost-recovery approach and its success rate. In response to Council Member Johnson, PRCS Director Jeff Hood stated the Department provides a recreational approach to sports, but some parents and organizations want something more competitive and look to other programs to fulfill that need. He stated there has been a decline in some programs due to this, and no change in others. In response to Council Member Johnson, Mr. Hood stated he will provide information on past and current participation levels. In response to Council Member Johnson, Mr. Hood stated staff did a market analysis on facility rental fees compared to similar competitors. The City has seen a 2 percent increase in net revenue, and he stated Kirst Hall is rented out every Saturday for a year in advance and rentals continue to increase. Mr. Hood stated the proposed methodology would ensure that rental prices are at the appropriate level to generate enough revenue to off-set the cost of maintaining and staffing the facility. Feedback from users indicate that people like renting Hutchins Street Square because they are not tied to a certain caterer or wine setting. Mayor Pro Tempore Kuehne stated that Wine & Roses and Woodbridge Golf and Country Club are similar venues and he would like to know what the fees are to rent those facilities. Council Member Mounce added that The Merlot is similar, especially since renters are not tied to specific caterers, and she would like to know those rental fees as well. Mr. Hood stated staff will provide that information to Council. Mayor Pro Tempore Kuehne stated that he has received complaints about Hutchins Street 1 Square relating to noise late at night, insufficient security, and garbage not being picked up and suggested staff revisit the staffing levels at the facility. Ms. DeGroot stated staff is working to implement a customer satisfaction survey to be in place next fiscal year. In response to Mayor Chandler, Deputy City Manager Andrew Keys stated that financial information from utility accounts could easily be used to determine whether a participant qualifies for a fee reduction scholarship. Mr. Hood added that the Department utilizes Finance Department information for the aquatics and Boosters of Boys/Girls Sports Organization programs, as well as documentation that qualifies participants for the free lunch program at school. The purpose is not to make a fee reduction scholarship program qualification process too onerous on participants or on staff. Ms. DeGroot stated staff can reach out to other communities for their established programs. Council Member Nakanishi stated he supports the concept because citizens want a robust parks system. In response to Council Member Johnson, City Manager Schwabauer stated that staff still follows the principle of charging less for youth sports and activities and more for adults, however, this proposed program gives flexibility for staff to determine whether some classes have a greater community benefit than others. Ms. DeGroot added that it also gives staff direction and guidelines in developing new programs. Mayor Pro Tempore Kuehne stated that during events at Lodi Lake, traffic is backed up into the street and there is an inadequate supply of envelopes to pay the parking fee. He stated there should be someone at the gate collecting money, especially during special events, and Council should revisit the possibility of charging a fee for the Fourth of July event at Lodi Lake. Parks need to be well maintained, and the City should be more diligent about charging fees to utilize park properties or fields. Council Member Nakanishi agreed, stating there should be a fee charged for the Fourth of July event to pay the City's costs. Council Member Mounce stated the only time there was a fee to attend the Fourth of July event was when the Lodi Rotary Club organized the event for the City, but the City never charged when it hosted the event. She added that tax payers believe the fireworks show is part of the taxes they pay and will likely be opposed to paying a fee. Council Member Mounce cautioned against raising parks fees until the City can get control over the homeless population taking over the parks. Mr. Hood reiterated that the Department is not proposing increases in fees at this time; only a mechanism to provide a cost-recovery model. Myrna Wetzel, member of the public, requested the City consider lower program fees for seniors, not solely youth programs, because older individuals cannot always afford the cost to participate in activities or lessons. Alex Aliferis agreed that the homeless problem negatively affects parks and urged the City to get a grip on the problem. He suggested the City consider private-public partnerships, similar to what other states are doing with their parks and libraries. Discussion ensued regarding public safety at parks and what maintenance staff does when they encounter issues; outreach and partnership with the Community Liaison Officer to address homelessness issues; and homeless sleeping on park benches. Mr. Schwabauer explained that the local judge expressed frustration to staff on the number of citations Lodi issues because it does not result in any changes in behavior or the consequences. The judge can sentence individuals, but the jail will not take them. The penal system does not allow for consequences on low-level offences; the City does not wish to put Parks personnel in a position of challenging individuals in the parks; and Police Officers will address situations, but it typically results in no jail time for individuals. Council Member Mounce suggested a monetary fine for anyone caught sleeping on a bench and, 2 if it accumulates high enough, additional action could be taken against the individual. Council Member Johnson stated that he trusts the Department is moving in the right direction with regard to the cost-recovery model that will create an equitable process for PRCS to set fees. Further, he stated he would not support charging a fee for the Fourth of July event. Council Member Mounce stated she is not opposed to progressing toward a new method or to charging for services; however, she wants to ensure that, before any fees are increased, the City is offering a quality product for its residents. C. Comments by Public on Non-Agenda Items None. D. Adjournment No action was taken by the City Council. The meeting was adjourned at 8:22 a.m. ATTEST: Jennifer M. Ferraiolo City Clerk 3 The Pyramid Methodology, Model and Policy Parks, Recreation and Cultural Services Council Shirtsleeve July 30, 2019 A Cost Recovery Approach Why a Cost Recovery Approach? PRCS desires to establish a well-defined, long-term pricing strategy, structure and system that: 1)Provides staff direction and a framework for setting fees and charges; 2)Supports the department’s fiscal health, sustainability, role and mission; 3)Ensures consistency with City goals and policy. Today’s Agenda 1)Introduce The Pyramid Methodology/Model – Exhibit A 2)Review and discuss the following: a)Benefits Filters b)10-step project approach c)Categories of service - Exhibit B d)Proposed PRCS pyramid and tiers - Exhibit C 3)Comprehensive “Fees and Charges” document 4)Need for a formalized scholarship program 5)With Council support, move to establish PRCS Cost Recovery Policy. The Pyramid Methodology Understanding the Pyramid and the Benefits Filters •The principal foundation of the Pyramid Methodology is the Benefits Filters. •Conceptually, the base level of the pyramid represents core services of a public parks and recreation system. •Services appropriate to higher levels of the pyramid should only be offered when the preceding levels below are comprehensive enough to provide a foundation for the next level. Understanding the Pyramid and the Benefits Filters •The foundation and upward progression is intended to represent public parks and recreation’s core mission; •Upward progress reflects growth and maturity of an organization as it enhances its service offerings. Mostly Community Benefit •The foundational level of the Pyramid is the largest. •Encompasses services including programs and facilities that MOSTLY benefit the COMMUNITY as a whole. •Services may increase property values, provide safety, address social needs, and enhance quality of life for residents. •Community generally pays for these basic services via tax support. Mostly Community Benefit •Generally offered to residents at a minimal charge or no fee. •A large percentage of the agency’s tax support would fund this level of the Pyramid. Examples include: The existence of the parks and recreation system; Ability fo r children to visit facilities on an informal basis; Low-income or scholarship programs; Park and facility planning, design, and park maintenance. Considerable Community Benefit •Second level of the Pyramid represents services that promote individual physical and mental well-being, and may begin to provide skill development. •They a re traditionally expected services and/or beginner instructional levels. •Services are typically assigned fees based upon a specified percentage of direct (and may also include indirect) costs. Considerable Community Benefit •These costs are partially offset by both a tax investment to account for CONSIDERABLE COMMUNITY benefit; •Relatively minor participant fees to account for the Individual benefit received from the service. Examples include: The capacity for youth, teens and adults to visit facilities on an informal basis; Ranger-led interpretive programs; Beginning level instructional programs/classes. Balanced Individual/ Community Benefit •Third level of the Pyramid represents services promoting individual physical and mental well-being, and provides an intermediate level of skill development. •The level provides balanced INDIVIDUAL and COMMUNITY benefit and should be priced accordingly. •The individual fee is set to recover a higher percentage of cost than those services falling within lower Pyramid levels. Balanced Individual/ Community Benefit Examples include: Beginning level instructional programs/classes Summer sports leagues, Teen programs Rentals (non-profit) Considerable Individual Benefit •Fourth level of the Pyramid represents specialized services generally for specific groups; •And those that may have a competitive focus. •Services in this level may be priced to recover full cost, including all direct expenses. Considerable Individual Benefit Examples include: Advanced level classes Specialty classes Competitive leagues Trips Mostly Individual Benefits •At the top of the Pyramid, the fifth level represents services that have potential to generate revenues above costs. •May be in the same market space as the private sector, or may fall outside the core mission of the agency. •In this level, services should be priced to recover full cost in addition to a designated profit percentage. Mostly Individual Benefits Examples include: Private lessons Private/company picnic rentals Other facility rentals for weddings or other services Concessions and merchandise for resale Restaurant services, etc. Project Approach and Steps 1 - 5 1.Introduce a “best practice” business tool to the Department and Parks & Rec Commission – A Pyramid Methodology (GreenPlay, LLC ™). (done) 2.Building on our organization’s Mission, Vision and Values and Strategic Action Plan. (done) 3.Understanding the Pyramid Methodology/Benefits Filters. (done – Exhibit A) 4.Analyze/develop the organization’s “Categories of Service.” (done – Exhibit B) 5.Sort the Categories of Service onto the Pyramid. (done - Exhibit C) Project Approach and Steps 6 - 10 6.Define direct and indirect costs for all programs/services. (done) 7.Determine (and confirm) the current tax investment/cost recovery levels and percentages. (done) 8.Established draft agency cost recovery/tax investment goals, targets and percentages by tiers. (done) 9.Understand and prepare “influential factors and considerations” relative to service fees. (done) 10.Full implementation of The Pyramid Methodology and cost recovery philosophy, including policy development . (Sept – Dec 2019). “Fees and Charges” Document Bring PRCS fees and charges under one, multi-page document Organized by categories of service Approvals indicated for Council/City Manager/Director Assists staff in analyzing and managing fees as part of budget submission process Annually reviewed and updated Formalize a Scholarship Program Taking care of those who cannot afford to pay a fee Today’s discussion focuses on appropriate resource allocation and answering such challenging questions as: 1.Are our programs and services priced fairly and equitably; and 2.Is there a methodology for the distribution of the tax investment; and 3.Who ultimately benefits? But what about those who cannot afford to pay a fee? Formalize a Scholarship Program A fee reduction scholarship program/policy is intended to provide access to services to residents with economic need. It is not a sustainable business practice to keep fees artificially low in order to ensure that all can afford to pay. Should Council wish to explore a fee reduction scholarship program, staff will research/develop a draft program/policy as part of the departmental work plan for FY 19/20. Summary PRCS seeks to achieve organizational sustainability through a best-practice, cost recovery pricing philosophy, policy and framework that ultimately supports the following: The department’s mission, vision, core values, and Strategic Action Plan; A Council-mandated fiscal policy of 40% recovery of operational costs only; and, An annually-updated and approved fees and charges schedule to be used by staff to appropriately price and collect revenue for service and program offerings. A new scholarship program. Q & A Thank you for your time and consideration! Exhibit A City of Lodi, CA Exhibit B Parks, Recreation and Cultural Services Categories of Service (29) 1. After School Programs 2. Camps 3. Campsite (RV) Rental/Use 4. City-wide Overhead 5. Community-wide Events (Typically Free) 6. Drop-in Park/Facility Use (Supervised) 7. Group Lessons, Instructional Clinics, Programs and Workshops (Beginner) 8. Group Lessons, Instructional Clinics, Programs and Workshops (Intermediate/Advanced) 9. Leagues - Adult 10. Leagues – Youth (Beginner) 11. Leagues – Youth (Advanced) 12. Long Term Leases – General Use 13. Long Term Leases – Non-Profits 14. Monitored Park/Facility Use 15. Parks/Open Space 16. Permitted Services (Park Rentals/Commercial Use Activities) 17. Private/Semi-Private Lessons 18. Planning and Project Management 19. Pools/Beach Rental 20. Rentals (Fields/Court - Exclusive Use) 21. Rentals (Special Event Facilities – Exclusive Use) 22. Rentals (Fields/Court - Public Use) 23. Rentals (Special Event Facilities – Public Use) 24. Rentals (Non-Profits) 25. Specialized Events/Activities (Ticketed) 26. Support Services (Administrative; Park Maintenance) 27. Tournaments 28. Tours/Field Trips 29. Trails City of Lodi, CA - Parks, Recreation and Cultural Services – EXHIBIT C (page 2 of 2) (DRAFT) Cost-Recovery Targets by Tier – Placement of Categories Tier Description Direct Indirect Average PRCS Program/Service 1 Mostly Community Benefit 0-10% 0% 0-10% City-wide Overhead Community-wide Events Parks/Open Space Planning and Project Management Support Services (Park Maintenance; Administrative) Trails 2 Considerable Community Benefit 10-40% 10% 10-40% Monitored Park/Facility Use Drop-in Park/Facility Use (Supervised) Leagues – Youth (Beginner) Tours/Field Trips 3 Balanced Individual/Community Benefit 70% 20% 40-70% Group lessons, Instructional Classes, Clinics, Programs and Workshops (Beginner) Long Term Leases – (Non-Profit) Rentals (Non-Profits) Rentals (Field/Courts – Public Use) Rentals (Special Event Facilities – Public Use) Leagues - Youth (Advanced) 4 Considerable Individual Benefit 100% 60% 70-100% After School Programs Camps Group Lessons, Instructional Classes, Clinics, Programs and Workshops (Advanced) Leagues - Adult Tournaments 5 Mostly Individual Benefit 100% 90% 100+% Campsite (RV) Rental/Use Long Term Leases – General Use Rentals (Fields/Courts – Exclusive Use) Rentals (Special Event Facilities – Exclusive Use) Permitted services (Park Rentals/Commercial Use Activities) Private/Semi-private lessons Pools/Beach Rental Specialized Events/Activities (Ticketed) NOTE: PRCS will set fees based on cost recovery targets and tier placement. However, particular consideration will also be given to demand, market conditions, and industry trends to ensure the continuation of a program or service.