HomeMy WebLinkAboutResolutions - No. 2019-184RESOLUTTON NO. 2019-184
A RESOLUTION OF THE LODI CITY COUNC¡L APPROVING COST
RECOVERY POLICY FOR PARKS, RECREATION AND CULTURAL
SERVICES FEES AND CHARGES
WHEREAS, as a Fiscal Year 2019/20 work plan item, the Parks, Recreation and Cultural
Services department recognized the need to refine the 2003 cost recovery policy in order to
continue addressing the long{erm fiscal health of the City's park system, as well as ensure fees
align with City Council goals; and
WHEREAS, having a well-defined cost-recovery philosophy, methodology and policy
establishes uniform guidelines and cost-recovery levels and goals for the department's programs,
events, activities and services; and
WHEREAS, it provides a structure to calculate fees; and
WHEREAS, it ensures appropriate costs are recovered based on who is served and who
benefits from a program or service; and
WHEREAS it provides a systematic framework for the potential removal of a program not
generating the designated minimum cost recover; and
WHEREAS it ultimately allows for decision makers to decide how to allocate taxpayer
support; and
NOW, THEREFORE, BE lT RESOLVED, that the Lodi City Council does hereby approve
the Cost Recovery Policy for Parks, Recreation and Cultural Services fees and charges as shown
in Exhibit A.
Dated: September4,2019
I hereby certifythat Resolution No. 2019-184 was passed and adopted bythe CityCouncil
of the City of Lodi in a regular meeting held September 4, 2019, 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
NIFER
Clerk
2019-184
ER
EXHIBIT A
Cost Recovery Policy
Parks, Recreation and Cultural Services
Fees and Charges
Purpose
Having a well-defined cost-recovery philosophy, methodology and policy establishes uniform guidelines
and cost-recovery levels and goals forthe department's programs, events, activities and services. ln
addition, it provides a structure to calculate fees; it ensures appropriate costs are recovered based on
who is served and who benefits from a program or service; it provides a systematic framework for the
potential removal of a program not generating the designated minimum cost recovery; and it ultimately
allows for decision makers to decide how to allocate taxpayer support. This policy and the following
strategies are a blueprint for achieving City Council cost-recovery goals as outlined in the City's Budget
and Fiscal Policies.
Policy
Costs will be defined in terms of direct (variable or fixed), indirect (facility/department support), and
average costs. Total cost to offer a program or service shall be the sum of the cost components listed
below. The allocation of revenue to cost will be done in sequential manner as follows:
t. Direct (variable or fixed) - part-time staff and other personnel resources or supplies that are
fixed or may vary with the program participation.
2. lndirect (facility/department support) - all associated facility costs and a percentage of
ad m inistrative or ma nagement su pport reasona bly assigned.
3. Average - represents the mean, which is calculated by dividing the sum of direct and indirect
costs bytheirvalues.
The pyramid methodology and model will be used to determine the percentage of cost recovery that
programs and services should achieve based on the benefits filter located on the left of the pyramid.
Placement of PRCS Categories of Service (Attachment 1) onto the five-tier pyramid is assigned based
upon the definition of each level (Attachment 2).
Created August 20L9
Approved by Council September 4,20t9
Review and Update 1" Thursday in January 2020, and each l't Thursdav in January thereafter
Program Most lmpacted All Programs and Services offered by PRCS
Primary Contact PRCS Director
Accountability
The cost recovery of programs and services will be managed as followed:
1. Strategies for achieving cost recovery will be established by Director and management-level
staff and may include ¡mmediate or gradual action, depending upon the best interest of
maintaining strong program participation, and achieving the designated target for each level
within a reasonable time period given current fiscal condition.
2. Activities unable to meet their minimum cost recovery target will be reviewed by the Parks and
Recreation Commission for consideration and recommended appropriate action. This might
include elimination or movement onto a lower tier.
3. As part of the Master Fees and Charges Schedule development and advisory recommendations,
the Parks and Recreation Commission will review the performance of each activity and level as
compared to the Cost Recovery Policy on an as needed basis.
4. New programs and services will be assigned to a level according to the definition of the levels
and may be given an evaluation period of approximately one year after conducting the program
(or offering of a new service) before being required to meet the corresponding cost recovery
minimum.
City of Lodi, CA
Parks, Recreation and Cultural Services
Categories of Service (29)
Attachment 1
After School Programs
Camps
Campsite (RV) Rental/Use
City-wide Overhead
Community-wide Events (Typically Free)
Drop-in Park/Facility Use (Supervised )
Group Lessons, lnstructional Clinics, Programs and Workshops (Beginner)
Group Lessons, lnstructional Clinics, Programs and Workshops (lntermediate/Advanced)
Leagues - Adult
Leagues - Youth (Beginner)
Leagues - Youth (Advanced)
Long Term Leases - General Use
Long Term Leases - Non-Profits
Monitored Park/Facility Use
Parks/Open Space
Permitted Services (Park Rentals/Commer:cial Use Activities)
Private/Semi-Private Lessons
Planning and Project Management
Pools/Beach Rental
Rentals (Fields/Court - Exclusive Use)
Rentals (Special Event Facilities - Exclusive Use)
Rentals (Fields/Court - Public Use)
Rentals (Special Event Facilities - Public Use)
Rentals (Non-Profits)
Specialized Events/Activities (Ticketed)
Support Services (Ad ministrative; Pa rk Maintenance)
Tournaments
Tours/Field Trips
Trails
L,
2.
3.
4.
5.
6.
7.
8.
9.
L0.
LL.
L2.
13.
L4,
L5.
L6.
L7.
18.
19.
20.
2L,
22.
23.
24.
25.
26.
27.
28.
29.
Cost Recovery Pyramid ModelAttachment 2Tier 5. Campsite (RV) Rental/Use.LongTerm Leases - General Use- Rentals (Fields/Courts - Exclusive Use)- Rentals (Special Event Facilities - Exclusive Use). Permitted services (Park Rentals/CommercialUse Activ¡ties). Private/Semi-private lessons- Pools/Beach Rent¿l. Specialized Events/Activities Oicketed)Average Cost Recovery 100+%lndividualMostlyBenef¡tI,i.:1 ,;.i.: 1. 1,¡ ,Ì¡-¡¡,,'r,,, ='-' '.:),.Tier 3.:;i,ç;:. )¿Â-'.'7 I ¡ 2è , .:?. ., ¡aìi,..r.ll:.:.:.. ./ |¿i,SL,l'i€ "'.ii'rrfuJ.,ãå,S.:ê'i.-\;, .. i=:.é- 3', ]¡; ,,,'q,zi 3. q ï ,'jr),tiGroup lessons, lnstructional 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)Average Cost Recovery : 4O-7 Oo/o.i; 1e,¡ u",¿.i 1,-:; ,:l3 ¡1-.;1¡g :, IlÎ',,ÍIl!;Tier 1City-wide OverheadCommunity-wide EventsParks/Open SpacePlanning and Project ManagementSupport Services (ParkMaintenance; Administrative)TrailsAverage Cost Recovery: 0-100/oO 2001 ,2008,2009,2013 GreenPlay, LLC