HomeMy WebLinkAboutAgenda Report - September 4, 2019 C-12AGENDA ITEM c-12
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AGENDA TITLE:
MEETING DATE:
PREPARED BY:
Adopt Resolution Approving Cost Recovery Policy for Parks, Recreation
and Cultural Services Fees and Charges
September 4,2019
Parks, Recreation and Cultural Services Director
RECOMMENDED ACTION Adopt a resolution approving a cost recovery policy for Parks,
Recreation and Cultural Services fees and charges.
BACKGROUND INFORMATION: As a FiscalYear 2019120 work plan item, the department
recognized the need to refine the 2003 cost recovery policy in order
to continue addressing the long-term fiscal health of the City's park
system, as well as ensure fees align with City Council goals. This updated, best management practice
cost recovery model and policy provides clear methodology and justification for how fees and charges
are established, and will better position the department for sustainable fiscal health.
Utilizing the best-practice pyramid methodology as a framework, staff navigated a nine-month analysis
and proposed pyramid and tier placement using the following steps:
1) lntroduced the pyramid model and methodology to staff, collectively identified current
categories of service and placed them onto the "benefits filte/'tiers 't-5;
2) Conducted two presentations to the Parks and Recreation Commission in 2019, receiving a
recommendation that the City Council adopt the proposed PRCS pyramid and tiers, including
average cost recovery percentages;
3) Presented the concept and exhibits at the July 30, 2019, City Council shirtsleeve meeting; and
4) Formalized the framework and methodology into an updated Cost Recovery Policy (Exhibit A)
now before the City Council for adoption.
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. 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.
APPROVED
Ste City Manager
Adopú Resolution Approving Cost Recovery Policy for Parks, Recreation and Cultural Seryices Fees and Charges
September4,2019
Page 2
FISCAL IMPACT:lmplementing a best-practice, cost-recovery methodology and model
provides guidance to staff and ensures that taxpayer funds are spent in
accordance with Council goals.
FUNDING AVAILABLE: Not applicable
, and Cultural Services Director
JH/CD:tl
cc: CityAttorney
Exhibit: (A) Proposed Cost Recovery Policy
Jeff
Pa
Created August 2019
Approved by Council September 4, 2019
Review and Update 1st Thursday in January 2020, and each 1st Thursday in January thereafter
Program Most Impacted All Programs and Services offered by PRCS
Primary Contact PRCS Director
Purpose
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. In
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:
1. Direct (variable or fixed) – part-time staff and other personnel resources or supplies that are
fixed or may vary with the program participation.
2. Indirect (facility/department support) – all associated facility costs and a percentage of
administrative or management support reasonably assigned.
3. Average – represents the mean, which is calculated by dividing the sum of direct and indirect
costs by their values.
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).
Cost Recovery Policy
Parks, Recreation and Cultural Services
Fees and Charges
EXHIBIT A
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 immediate 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 Attachment 1
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
Attachment 2
RESOLUTTON 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