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Home My WebLink About2003-04-21; Parks & Recreation Commission; 403-2; Proposed Fee IncreasesPARKS & RECREATION COMMISSION -AGENDA BILL AB# 403-2 PROPOSED FEE INCREASES FOR USE OF THE MTG. DATE: 04-21-03 TITLE : c] INFO EXISTING AQUATIC FACILITY AND PROGRAMS ACTION STAFF: POPE RECOMMENDED ACTION : If the Commission concurs with the staff recommendation, direct staff to present the proposed increases as part of the FY 03-04 Budget Review Process for City Council adoption. ITEM EXPLANATION : At the Parks & Recreation Commission meeting on 3-17-03, the commission was presented with a staff recommendation for increased fees for Aquatics programs and services. The fees proposed at that time were projected to return an approximate 43% self-sustaining percentage for program and facility operations. Based on an understanding of City Council’s goal, the Commission directed staff to return with a fee schedule that would return the Aquatics section to 52% or more. Accordingly, staff reviewed the fee survey and revised the proposed fees to produce a higher percentage of self-supporting status (Exhibit 1). In addition, more information on pool rentals to schools was surveyed and is presented as a separate Exhibit (Exhibit 2). Staff recommends a reduced rate for school pool rental from what other groups may be charged, due to the current state budget impact on the schools. The revised recommended fees shown on the Aquatic Fee Comparative Analysis will help the Aquatics division achieve approximately 56% self-sufficiency (Exhibit 3). However, staff anticipates a reduced participation rate due to fee increases and consequently, expects revenue to decrease by 3-5%. Therefore, the actual percentage of self-supporting status is expected to be slightly less. The Aquatic Supervisor will address the Commission and be available to answer specific questions regarding the suggested fee increases. EXHIBITS: I. Aquatic Fee Comparative Analysis 2. Survey of Pool Rental to Schools 3. Summary of Revenue Increase and Self-sustaining Projection 4. AB 303-6 - “Proposed Fee Increases for Use of the Existing Aquatic Facility and Programs” - March Parks & Recreation Commission Meeting Agenda Item and Report Aquatic Fee Comparative Analysis - "ine Descrbtion Current Fee Survey VALUE Recmnd % for clean up as necessary. 34 Del'ete 1 - - 7 36 1 Gas -pek'hour - Del& - 3/' 39 '1 Electricity -per hour 25% 20 - 16 Staff Costs -Per Houdguard Due to large difference in facilities/services included, survey mean does not include Olympic For comparative purposes, the Value Mean is the fee shown as a per hour or per day rate, times 0 *For Birthday Parties with up to 100 people. - Resort. the number of hours or days offered for similar services and programs. 4/14/2003 8% AM Fees Chart with MeanS.doc EXHIBIT 1 13 Summary of Revenue Increase rc Pre-Beginner: $ 10,365 Learn to Swim: $ 19,300 Family Passes: $ 14,050 Individual Passes: $ 11,550 Daily Admission: $ 5,841 Rentals: $ 31,005 Programs: $ 6,779 $ 98,890 " FY 03-04 Budget $473,791 (without contingency) Total Estimated $266,890 Revenue with Increase Estimated 0.56 Self-sustaining Percentage* * A 34% decrease in usage and revenue is expected with increased fees 4/14/2003 8:35 AM FEE SURVEY - WHAT IF ANALYSIS Summary EXHIBIT 3 15 PARKS & RECREATION COMMISSION -AGENDA BILL AB# 303-6 TITLE : - 0 INFO MTG. DATE: 03-24-03 PROPOSED FEE INCREASES FOR USE OF THE EXISTING AQUATIC FACILITY AND PROGRAMS ACTION STAFF: POPE RECOMMENDED ACTION : If the Commission concurs with the staff recommendation, direct staff to present the proposed increases as part of the FY 03-04 Budget Review Process for City Council adoption. ITEM EXPLANATION : In 2002, Department staff proposed several fee increases in the Facility Rules and Use Regulations outlined in City Council Policy #28. At that time, there was no proposed fee increases for the Aquatic Facility or its’ programs. However, as part of the Commission discussion related to that issue, staff received direction to evaluate the current aquatic fees and present any recommended revisions and return to the Commission. To that end, Department staff has conducted a survey of other aquatic facilities and programs in an effort to produce a comparative analysis of the fees that Carlsbad charges in relationship to what other agencies charge. In addition to determining the market rate, or what other service providers were charging, part of the analysis was to gauge what the market will bear, or what is the customer’s ability (or limitation) to pay. Fees were last increased for use of the Swim Complex two years ago. At that time, moderate increases were recommended for a limited number of programs only. After a comparative review of survey results, staff is recommending fee increases in most areas with some fees more significant than others. Regardless, it is staffs opinion that the fee increases are warranted and, for the most part fall within the existing market range. The attached report details the proposed fee increases for use of the swim complex and the programs that are associated with it. The Aquatic Manager will address the Commission and be available to answer specific questions regarding the suggested fee increases. EXHIBITS: 1. Staff Report - Recommended Fees For Aquatics Programs and Facility - March 17,2003 EXHIBIT 4 lb March 17,2003 TO: RECREATION DIRECTOR VIA: RECREATION SERVICES MANAGER& FROM: AQUATIC SUPERVISOR RECOMMENDED FEES FOR AQUATICS PROGRAMS AND FACILITY BACKGROUND The cost of providing aquatic programs and facilities has increased substantially over the past several years. Fee increases are recommended as a way to keep the self-sustaining status of aquatic programs up to the Council set goal of 50% or beyond. For fiscal year 01-02, Aquatics was 47.4% self-sustaining not including Capital Outlay expenses. More recently, due primarily to the rising cost of utilities, the estimated self-sustaining percentage for fiscal year 02-03 is approximately 45.5%. Unlike the self-sustaining status percentage of recreation programming which operates at 60% or better, the Aquatics self-supporting percentage is all-inclusive. That is to say, the entire cost associated with operating that facility is compared to the revenue that the facility generates. For example, the cost of utilities such as heat, light, and water are considered when determining the cost of producing recreation programs. These percentages were introduced in the mid-1980s when the City Council established a goal for the self-supporting percentage of recreation programming to be 60% and 50% for the Aquatic operation. - considered in the Aquatics self supporting percentage, whereas those costs are not RECOMMENDATION Staff recommends incorporating the proposed Aquatic fee changes into the master fee schedule. If the Parks and Recreation Commission and City Council concur, the recommended fee schedule will be incorporated and adopted as part of fiscal year 2003- 2004 Operating Budget. DISCUSSION When setting fees, there are many factors to consider. These include the cost to provide the service, what other service providers are charging (the market rate), and the ability of the customer to pay (or what the market will bear). In addition, the self-sustaining percentage established by City Council for the program is a key consideration. At this time it is staffs opinion that in order for the Swim Complex to operate at 50% self- supporting, it would require fee increases beyond what the market would bear. The Aquatics section operates a variety of programs which produce significant revenue, including swim lessons, recreation and lap swimming, Masters Swimming and Water conduct programs such as swimming and water polo teams. The following chart reflects programs offered with their current and proposed fees. - Works. In addition, the Swim Complex is rented to community groups to allow them to EXHIBIT I ,.tp(p The proposed fees are supported by a survey of fees charged by other aquatic facilities in the coastal north county area. (Attachment 1). FISCAL IMPACT Total increase in revenue to all Aquatic revenue accounts is estimated as $43,000. Swim Lessons $14,000 Aquatic Programs $ 6,500 Recreation Swim $1 2,000 Pool Facility Rental $1 0.000. $43,000 CONCLUSION The cost of providing aquatic programs and facilities has substantially increased in the last several years. These proposed fee increases are recommended as a way to increase the self-sustaining status of aquatic programs. However, even with the proposed fee increases, it is not expected that the self supporting percentage of the aquatic facility and program operation will operate much above the current rate of return in the coming years without a substantial increase in fees beyond what is currently proposed. Regardless, it is staffs recommendation to initiate the proposed rate increases, and continue to operate the Aquatic Complex in the most efficient manner possible in an effort to maximize its’ self sustaining ability. A Carl Pope Attachments: 1 : Aquatic Fees Survey Data 2003 2: Existing full Fees chart C: Management Assistant Management Analyst - 3/17/2003 928 AM Aq Fees Rec Report 03 V2.doc Aquatics Fees Per Admission - Youth & Teen 1 .OO Per Admission - Adult - Resident 2.00 Per Admission - Adult - Non-Resident 3.00 ;wim Passes-One Month Individual - Resident 20.00 Swim Passes-One Month Individual - Non-Resident 30.00 Swim Passes-One Month Family - Resident 42.00 Swim Passes-One Month Family - Non-Resident 52.00 Swim Passes-Four Month Individual - Resident 30.00 Swim Passes-Four Month Individual - Non-Resident 40.00 Swim Passes-Four Month Family - Resident 50.00 Swim Passes-Four Month Family - Non-Resident 60.00 City Classes - Beginner - Learn to Swim - Res 25.00 City Classes - Beginner - Learn to Swim - Non-Res 35.00 City Classes - Adultrreen - Learn To Swim - Res 27.00 City Classes - Adultrreen - Learn To Swim - Non-Res 37.00 City Classes - ParenVlnfant thru Pre-School Ill - Res 27.00 City Classes - Parenfflnfant thru Pre-School Ill - Non-Res 37.00 Contract Classes - Adapted Aquatics - Res 25.00 Contract Classes - Adapted Aquatics - Non-Res 35.00 Masters Swim (Daily Fee) - Res 3.50 Masters Swim (Daily Fee) - Non-Res 4.50 Contract Classes - Diving, Synchro Swim - Res 27.00 Contract Classes - Diving, Synchro Swim - Non-Res 37.00 Contract Classes - Masters Swim Workouts - Res (Monthly Fee) 35.00 Contract Classes - Masters Swim Workouts - Non-Res (Monthly Fee) 45.00 Individualized lnstr - Basic Swimming - Res (per hour) 25.00 Individualized lnstr - Basic Swimming - Non-Res (per hour) 35.00 Individualized lnstr - Advanced Instrkoaching - Res (per hour) 27.00 Individualized lnstr - Advanced Instrkoaching - Non-Res (per hour) 37.00 :ental - Exclusive Use - Community/Non-Profit (per lane, per hr) 3.50 Use Agreements - C.U.S.D. (per lane per hr) 2.40 Use Agreements - N.C.AJNorth Shore Aquatics - (per lane per hr) 2.40 Staff Costs - City provided services (Life Guard / Supervision etc. - Per Hr) 16.00 Utility Fee - Electricity (per hour after sunset) 3.00 Utility Fee - Gas (per hour after 7pm and 4pm on weekends) 7.00 -?ental - Exclusive Use - CommerciaVCorp (per lane, per hr) 8.80 3/14/2003 11 :02 AM ATTACHMENT 2