HomeMy WebLinkAbout2009-11-16; Parks & Recreation Commission; 1109-4; Draft Fees and Charges PolicyPARKS & RECREATION COMMISSION - AGENDA BILL
AB#1109-4
MTG. DATE:11/16/09
STAFF: | CALARCO
DEPARTMENT REPORT: PARKS AND
RECREATION DEPARTMENT DRAFT FEES
AND CHARGES POLICY
INFO
ACTION
RECOMMENDED ACTION:
Receive a presentation from the Parks and Recreation Department staff.
ITEM EXPLANATION:
Mick Calarco, Recreation Services Manager, will report on, and seek the Commission's input on,
the work completed to date on the draft Parks and Recreation Department Fees and Charges
Policy.
This item is expected to return to the Parks and Recreation Commission for a formal review and
recommendation in January 2010.
EXHIBITS:
1. Parks and Recreation Department Fees and Charges Policy (draft version dated November 10,
2009)
EXHIBIT 1
City of Carlsbad
Parks and Recreation Department
Fees and Charges Policy (Draft November 11,2009)
STATEMENT OF AUTHORITY;
The City of Carlsbad, City Council has established the legal authority for the management and control of
all City revenues, expenditures, and investment of funds. The Parks and Recreation Department shall
prepare and maintain a master schedule of fees and charges for those programs, services and facilities
where such revenues are necessary to support continued use.
The following are proposed options to be considered by the Parks and Recreation Commission and
approved by the City Council (January 2010).
Option 1:
Could the Council delegate its authority to set all fees for parks and recreation Department programs
and services?
• An example from the City of Virginia Beach, VA: City Code Chapter 24, Section 24-3 states, "...
the director of parks and recreation is hereby authorized to (i) establish reasonable fees, and (ii)
adopt and enforce reasonable policies, procedures, rules and regulations, pertaining to the use
of city parks, recreational facilities, and parks and recreation equipment, subject to the approval
of the city manager."
"Reasonable" fees could be established according to the cost recovery policy that the Department has
adopted.
Option 2:
Another option could be for the City Council to allow the Parks and Recreation Director to set program
and class fees only. Other fees, such as facility use fees, could be set by Council, and a range of+/- 25%
could be considered for some flexibility. For example, fees could be increased during periods of peak
demand, and reduced during off peak periods of reduced demand or low use.
STATEMENT OF PURPOSE;
A primary goal of this policy is to establish continuing organizational sustainability through a logical and
thoughtful philosophy that supports the Department's core values, project vision, and the community it
serves.
The intent of this policy is to help the Parks and Recreation Department adjust to current economic
climate and budget reductions while not decreasing services. Heavy reliance on alternative funding
sources, as well as aligning pricing strategies, is an objective of this policy-
Draft (November 9, 2009)
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
Further, this policy is designed to address the following key pricing issues:
• Designating the level of community versus individual benefit that was identified during the
"Core Services, Resource Allocation, and Pricing Strategies" report process;
• Designing a fee structure and process that is fair, equitable, and accessible;
• Outlining what programs and services should be subsidized;
• Setting fees at an appropriate level, and creating an appropriate safety net;
• Ensuring consistency - same price for a similar program, service, or facility, and;
• Determine, in part, how much of each service's cost will be recovered through user fees and
other charges.
Cost recovery goals, as determined by this policy, are intended to be averages across Parks and
Recreation Department programs and services. Over- or under-achievement of these cost recovery goals
by any particular site, program, or service is acceptable jgi order thatth»&j)rograms and service fit the
realities of the marketplace and the community whiltffclpmizing participation, making efficient use of
parks and recreation facility capacity, and maintaining a broad and diverse array of program and service
offerings. ;v
^^s
STATEMENT OF PHILOSOPHY; -
The Parks and Recreation Department has established a series ®f guiding statements and principles
(strategic plan) that were reviewed, analyzed and considered durfttf 4;he Core Services, Resource
Allocation, and Pricing Strategies project. These include the Departnwte^'s mission, core values, vision,
community target issues and JWiject specific vision.
The Parks and Recreating Department*! organizational values are comprised of a combination of societal
and community values; member and staff values; and Department leader and policy maker values. The
values direct the Department's vision and help to determine those community conditions the
Department wishes to impact through the organizational mission.
\
Parks and Recreation Department Mission:
"The Parks and Recreation Department's mission is to build strong community through a broad range of
high quality recreation and park services for all who live, work, and recreate in Carlsbad."
Parks and Recreation Department Community Vision:
"Special emphasis is given to human development to promote healthy and resilient individuals that
become the building blocks of healthy families, neighborhoods and communities."
Parks and Recreation Department Core Services, Resource Allocation, and Pricing Strategies Project
Vision:
The Parks and Recreation Department staff identified a project specific vision to guide the cost recovery
process.
Draft (November 10, 2009)
d?7
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
"The Parks and Recreation Department's project vision is to have active and healthy citizens engaged in
programs and using facilities that are operated in a safe and sustainable manner."
The Parks and Recreation Department efficiently manages its resources in order to provide the
community with equitable opportunities for diverse programs and services as identified by the
Department's core values and the community's target issues.
Parks and Recreation Department Core Values:
• Quality of life
• Sense of community
• Equal access for all
• Strong Community
• Excellence in service
• Efficient and effective
• Organizational vitality
Parks and Recreation Department Community Target Issues:
• Safe places to gather
• Lifelong learning opportunities
• Trails, parks, and open space
• Programs that strengthen families and build a strong sense of community
• Health and fitness
The Parks and Recreation Department attempts to balance the various levels of community versus
individual benefit by providing basic paries, programs, and facilities without a fee for use or participation.
Programs or services that haw an increasingly individual level of benefit are provided through user and
participant fees t0 recover all or a percentage of the associated direct and indirect costs.
RESIDENCY:
Parks and Recreation Department patrons that reside outside of the City of Carlsbad and do not support
the City's efforts via payment of property taxes, and those patrons who propose to use public recreation
facilities, programs and services for proprietary gains may incur fees and charges higher than a Carlsbad
resident taxpayer. :: *
Resident Verification:
Carlsbad residents must show proof of residency with one of the following:
• Property tax papers (original or photocopy with registrant's or participant's name). Note: A
business owner who can show both proof of ownership and property tax payment will qualify,
or proof of homeowner's tax exemption, but not employees of the business.
• Utility/telephone bill (showing participant's/registrant's address)
• Rental receipt/lease
• Imprinted address on check (not acceptable if handwritten or with P.O. Box)
Draft (November 10, 2009)
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
Non-Resident:
A non-resident is a person that does not meet the resident verification test (above).
CLASSIFICATION OF APPLICANTS:
Types:
Each application will be reviewed by staff and classified into a group depending on the type of
organization and the intended use. Parks and Recreation Department activities have first priority for the
use of the facilities. The categories are listed in order of priority with category A first, category B second,
etc.
The Parks and Recreation Department attempts to accommodate all groups; however, there is a limited
number of parks and facilities. Unfortunately, the demm^often exceeds the supply. For that reason, a
priority classification system for use was established. ,!\\ >0
>N
A. Carlsbad Parks and Recreation activities; co-sponsored activities; other City departments
Examples: Friends of the Library, Carlsbad Boo¥^£ ffecjipfen and Lap Swim, Swim Lessons,
Masters Swim Program. '* „ fp>
B. Carlsbad resident not-for-profit, civic, social organizatfons (non-paid management - no voting
board member can be paid); any organization sponsoring a public forum or candidates night;
public education. Examples: Carlsbad Rotary, It Costa YouWjtjjuanization, Carlsbad Softball
Association, Carlsbad ¥outh Basebalt, Sey Scouts, Gaekbad Hc^^vner's Associations, Carlsbad
C. Carlsbad reside«CWot-for-pr0f^ civic, soeltl 0i-gimizations|||id management); private
educational institutions, Examples: Boy's crrttf girl's Club, Property Management Associations.
D. Non-resident not-tef%srofit, educational, civicfiiod social organizations; resident private parties;
and locally organized groups whose normal place of meeting is located in the City of Carlsbad.
Examples: North County 44 YMCA, resident religious and political groups, Mira Costa College.
E. Carfsbad resident commercM, business, profitinaking organization, non-resident private party
activities Examples: Carlsbad /m^ ^on-resident parties, weddings or receptions.
F. Non-resident commercial, business, political, profit making and religious organizations
Examples: Trade shows, company training, meetings, seminars, scuba shops, commercials or
photo shoot.
G. Senior Athletics: Any senior athletic group that is 55+. Athletic Field Use Only.
Examples: North County Senior Softball League.
NON-PROFIT USER CRITERIA:
1. In order to qualify as category B or C nonprofit user group, the organization must meet all of the
following criteria:
• The organization must be registered as a not-for-profit corporation with the State of
California and be a Carlsbad Chapter;
Draft (November 10,2009)
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
• In addition to the State Non-Profit Corporation status, the organization must provide
the Department with Articles of Incorporation or Constitution and By-Laws that clearly
state that the objective of the organization is of a non-profit, non-commercial nature;
• Classification assignment for sports organizations utilizing athletic fields will be based on
player rosters, including player addresses, and the organization must have 70% of the
players residing in Carlsbad to qualify for category B or C. A group that does not have
the minimum 70% Carlsbad residency will be placed into a lower category;
• Verification of Carlsbad residency is required.
2. Non-profit sports organizations requesting athletic field use are required to submit player
rosters a minimum of ninety (90) calendar days prior to the field allocation meeting. The rosters
must be verified by one governing association (mafn chapter parent organization), which will be
used to determine classification status. These rosters must come from the governing
organization and be signed by the league's board of officers. Participant addresses with a post
office box number will not be accepted. *
.•-•-. --H.3. Department staff will return rosters once classtfl||tion is Jiprrnined. Oncers classification
determination has been made by staff and approved by tl»e Department Director, the decision is
final. , ;>K. ' :*,.,
4. The organization must submit the following do&iments: %k
-' •'' '"•V,"; ^|
• The documents Wtnjified in subjection t pbbw; &
• Financhrtverificatiortdf organization's tax exemption from income tax returns/filings
(Departmtm of the Treasury form §9$, Application for Recognition Form 1023, and
501(c) approved determination letter from the IRS is required), and;
• Asigned statement verifying item in subsection 1 above. Sports organizations see
u subseetlbtts 3 and 4 above.
\V
REFUNDS
The Parks and Recreation Department is committed to providing the highest quality of programs and
services, and strives to achieve and irtaintain an outstanding level of customer satisfaction. To achieve
the goal, the Departmerrt has prepared a refund policy.
General: ? ,j
When the City cancels a fee supported Recreation program, the participant or payee shall be eligible for
a full refund.
When a registrant requests a refund prior to the second scheduled class or by trip deadline date and
paid their registration by check or cash, the refund will be granted minus a cancellation check processing
fee, and the prorated fee for the first class. If Visa or MasterCard was used to pay the registration fee,
the refund will be granted minus the prorated fee for the first class. If the registrant prefers to have a
credit to avoid the Cancellation Check Processing Fee, a credit will be issued regardless of method of
Draft (November 10, 2009)
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
payment. The credit is good for 12 months from date of issue, and may be used for any Parks and
Recreation Department program. After 12 months, any unused credits will be forfeited. Once a credit is
issued, it cannot be exchanged for a refund. Beginning on the second class date, no refunds or credits
will be given. If a registrant fails to attend a program after it begins, the registrant is not entitled to a
refund. There are no cash refunds. All refunds will be mailed approximately two to three (2-3) weeks
after a request for refund is received.
Preschool:
Once registered for fall, refunds will be given only if notice of your cancellation is received prior to the
first business day of August each year, and your spot is able to be fitted from the waiting list. If your
space is unable to be filled, no refund will be given. All refunds granted will be processed minus a
processing fee per person, per class.
Athletic Field and Facility Rental Application Fee or Rental Fee Payment:
• A non-refundable application fee or rental fee payment in full is required and is due at time of
application submittal.
• The application fee will be applied to the total cost of the rental and will not be refunded if the
reservation is canceled. If the total rental fee is less than the amount of the application fee, the
difference will be refunded after the rental has occurred.
• Exception: category B users - where no fee is required.
• In the event of a cancellation less than 30 calendar days in advance of registration date (for pool
rental cancellation, notice must be given 10 calendar days in advance) the applicant will forfeit
all rental fees paid. ',
Cleaning/Damage Deposit:
• Cleaning/damage deposit shall be refunded if proper clean-up is completed and no breakage or
damage has occurred.
RETURNED CHECK POLICY;
' "^
A service fee will be charged for all checks returned for insufficient funds.
APPLICANT FEE REDUCTION: 3
Only the Carlsbad City Council has the authority to reduce or waive applicant fees through the agenda
bill and resolution process. However, the City of Carlsbad and the Parks and Recreation Department
offers select opportunities where fees for programs or services may be subsidized (in full or in part) by a
grant or another funding source.
Community Activity Funding:
Contingent on budget approval and the availability of General Fund monies, the City Council may offer
limited financial support in the form of community activity funding (refer to Council Policy 51).
Community activity funding includes community activity grants, special events grants, and winning team
grants.
Draft (November 10, 2009) 6
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
Opportunity Grants:
Contingent on fundraising, budget approval and the availability of Special Revenue Fund monies, the
Parks and Recreation Department offers opportunity grants for youth from very low-income families
that reside in the City of Carlsbad. The opportunity grants program is designed to provide youth, ages
17 years and younger, the opportunity to participate in Parks and Recreation Department classes, camps
and aquatic programs that they may not normally be able to afford.
BENEFITS FILTER/PYRAMID MODEL;
The benefits filter is a series of continuums providing different ways of viewing service provision. These
filters influence the final positioning of services on the pyramid as they relate to each other and are
summarized below. The Benefits Filter forms the foundation of the pyramid model and is used to
illustrate a resource allocation philosophy for the Parks and Recreation Department (Appendix A).
Community Benefit:
The foundational level of the pyramid is the largest, arW includes those services Including programs,
facilities, and parkland that benefit the community as 3 whole. Tnf |e services can Increase property
values, provide safety, address social needs, and enhance qyaJJi|<Jf life for all residents. The community
generally pays for these basic services and facilities through t85«is. These services are offered to
residents at minimal or no fee. A large percentage of the tax support of the Department would fund this
level of the pyramid.
Community/Individual Benefit: t
The second and smaller level of the pyramid represents services including programs, facilities, and
parkland that promote individual physical and mental well-being and provide recreational skill
development These are generally more traditionally expected services and beginner instructional levels.
Costs are partially offset by both a tax subsidy to account for the community benefit and fees and
charges or other alternative funding sources to account for the individual benefit.
Individual/Community Benefit:
The third and even smaller level of the pyramid represents services which promote individual physical
and mental well-being and provide an intermediate level of recreational skill development. This level
provides more individual benefit and less community benefit. Cost recovery goals are established to
recover a higher percentage of costs than for programs and services that fall in the lower pyramid levels.
Mostly Individual Benefit:
The fourth and still smaller pyramid level represents specialized services generally offered for specific
interests, possibly having a competitive focus. In this level, cost recovery goals may be set to recover full
costs of service provision, including all direct and indirect expenses.
Draft (November 10, 2009)
34
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
Highly Individual Benefit:
At the top of the pyramid, the fifth and smallest level represents activities that have profit center
potential, and may not align with the Department's values, vision and mission. In this level, cost
recovery goals may be established to minimally recover all costs plus a designated profit or excess
revenue percentage.
CATEGORIES OF SERVICE:
Programs offered by the Parks and Recreation Department are classified into 16 different categories of
service. In this section, these categories are defined and identified with a typical listing of services
included in each group. These categories determine, in part, how Much of each service's cost will be
recovered through user fees and other charges. A desired percentage of cost recovery is included for
each category of service.
~v
Cost is defined as all direct and indirect expenses associated with providing a service including
programs, facilities, and parks. *j*iF
^'.' x**
Cost recovery is the degree to which the cost (direct and indirect) of services including programs,
facilities, and parks is supported by user fees and other designated funding mechanisms such as grants,
partnerships, etc.
A complete glossary of terms and definitions is included in Appendix B,
Service Categories:
1. Rentals - Rentals Include exclusive use of a facility or space scheduled for a specified date and
time outside of the Parks and Recreation Department's offering and activities.
a* Governmental entities (conducting government business) including:
• Cltyof Carlsbad entity (other departments like libraries, police, etc.)
o Cost recovery range: 0%
• Non-city Isntity (SANDAG, other cities, colleges, school district)
o Cost recovery range: 15%-50%
b. Non-profit organizations (agencies or organizations with an IRS not-for-profit
designation, or school district student activities) [Includes Mira Costa College classes,"CUSD
o Cost recovery range: 50%-80%
c. Private (individuals or groups)
o Cost recovery range: 100%+
d. For-profit organizations (commercial or private business)
o Cost recovery range: 100%+
2. Lagoon Permits - Lagoon Permits are provided for non-exclusive use of the Agua Hedionda
Lagoon.
o Cost recovery range: 100%+
Draft (November 10, 2009)
33
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
3. Product Resale/Vending - Product Resale/Vending is the availability of consumable and non-
consumable goods for purchase.
o Cost recovery range: 100%+
4. Individualized Lessons - Individualized and Customized Lessons take place in an independent or
semi-independent setting (1-3 people) providing skill instruction, personalized attention, and
guidance, managed by the Parks and Recreation Department.
o Cost recovery range: 100%+
5. Wellness Services -Wellness Services consists of programs targeted for seniors (50 and older)
that are oriented to enhance independent living skills, health and welfare. [Includes
transportation, home and congregate meals, health and blood pressure screenings, tax
preparation, legal and health insurance consultation, etc]
o Cost recovery range: 50%-80%
6. Trips - Trips include day, overnight, and extended trips that provide opportunities to visit select
destinations, and are managed by Parks and Recreation Department.
o Cost recovery range; 100%+
7. Drop-In Non-Monitored Access -Drop-in, Non-Monitored Access managed by the Parks and
Recreation Departments, providing open access to a city-owned space without expected
oversight or supervision. [Includes parks, trails, open space, etc.]
o Cost recovery range: 0%-15%
8. Drop-In Monitored Access- Drop-;n, Monitored Access consists of activities and facility use
which do not req#»e pre-regiftration, art Hot Instructed; ftewtever, include indirect oversight (in
the facility but not necessarily present in the designated use space). [Includes open activities
managed by Parks and Recreation Department in the Senior Center such as open billiards and
immunity Center such as Family gym, and at Carrillo Ranch such as self-guided
rol, Pofnsettia Tennis Courts, etc.]
o Cost recovery range: 15%-50%
9. Structured/Monitored Access - Structured/Monitored Access consists of activities and facility
use managed by the Parks and Recreation Department that do not require pre-registration but
do require sign in; however, provide direct supervision (present in the designated use space)
during a specified timeframe. [Includes structured basketball, recreational and lap swimming,
guided tours, senior center Interest groups (bridge, discussion groups, etc.), open gym, etc]
O Cost recovery range: 50%-80%
10. Instructional/Developmental Programs - Instructional/Development Programs include classes,
workshops, lessons and clinics managed by the Parks and Recreation Department that are
structured with direct supervision or leadership, with pre-registration required.
a. Beginning - novice, introductory, multi-level, or there is no pre-requisite
o Cost recovery range: 50%-80%
b. Intermediate
o Cost recovery range: 80%-100%
c. Advanced - includes competitive level
Draft (November 10, 2009)
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
o Cost recovery range: 100%+
11. Leagues/Teams - Teams/Leagues are organized recreational sports activities that may or may
not be officiated or judged, and may or may not be scored, managed by Parks and Recreation
Department. [Includes youth and adult softball, basketball, soccer and etc.]
o Cost recovery range: 50%-80%
12. Camps - Camps are programs offered for community youth during the summer season and
spring break, provide multi-faceted recreational activities [Includes sport camps, enrichment
camps, traditional camps.]
o Cost recovery range: 50%-80%
13. Special Events - Special Events are Department managed, event(s) that may or may not require
pre-registration and are offered throughout the year. Special Events may be designed for any or
all ages.
a. Competitive [Includes triathlon]
o Cost recovery range; 80%-100%
b. Social [Includes "Snores and Smores", "EGGstravaganza", "Pumpkin Plunge"]
o Cost recovery range: 15%-50%
14. Inclusion Services - Inclusion Services provide for a reasonable accommodation to any
Department activity, park and/or facility providing leisure opportunities to people with physical
or cognitive disabilities, inclusion services are intended to comply with the Americans with
Disabilities Act (a federal mandate).
o Cost recovery range: 0%-15%
15. Specialized Services - Specialized Services provide leisure opportunities for people with physical
or cognitive disabilities that are designed and managed to be specific to the physical, cognitive,
social, and affective needs of these populations.
o Cost recovery range: 50%-80%
16. Administrative Support-Administrative Support includes all global departmental administrative
overhead such as: the Parks and Recreation Director's office. Recreation Services Managers,
Management Analysts, Commission Support, Administrative Office Support, Parks and Trails
Planning and Development, Volunteer Program, non-programmatic facility costs, and pro-rata
share of general administrative duties of the Department's Recreation Area Managers/Aquatics
Manager. Temporarily includes 100% of Recreation administrative staff and 20% of all managers
time.
a. City-wide Administrative Support - [Includes Agenda Bills, City Council meeting
attendance, Quarterly Management Meetings, City-wide goals and committees, Citizen
Academy, travel to these activities, etc.]
o Cost recovery range: 0%-15%
Draft (November 10, 2009) 10
3 (M*
J
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
b. Department-wide Administrative Support - [Includes Parks and Recreation Commission
meeting attendance, Department goals, committees, and meetings, policies and
procedures, All Hands Meetings, Volunteer Liaison, Web Training, TRUST, travel to these
activities, etc.]
o Cost recovery range: 0%-15%
DETERMINING FEES AND CHARGES;
Fees and charges are evaluated using the following process:
• Determine the category of service. If a new program or service is proposed, it should first be
considered by a committee established by the Parks and Recreation Director, and evaluated and
classified according to the Service Assessment (MacMlllan) Matrix criteria;
• Determine the direct and indirect costs of providing the service;
• Determine the fee or charge by: :!?%
o Considering the target cost recovej|||prcentage range as outlined in the Categories of
Service;
o Utilize the tools outlined in "Developing a Pricing Strategy" (Appendix C);
o Implement the pricing strategies (compelilive vei^uj market rate) identified in the
"Service Portfolio - Provision Strategies lnelu$np€ost Recovery Goals" (Appendix D);
o Perform a comparative data analysis using theliriteria outlined in Appendix E.
• Secure the required approvals and proceed with marketingand implementation of the program.
•^
FEE REVIEW; |
The City of Carlsbad Partis and Recreation Department fee schedule lira 11 be reviewed annually as part of
the budget process (Appendix F).
Draft (November 10,2009) 11
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
APPENDIX A:
Cost Recovery Pyramid:
Carlsbad, CA
Recreation Department
Cost Recovery Pyramid - 2009
-Rartals/privste
-Kartas/tw-prom
-Product resale/versing (Proposed)
-togoon permits
etopmert program
-iraMduafaed lessons (Proposed)
-TrilH
programs-intermediate
Special waits - competitive
nwi profit Speci^ized eervket
-instructiondl/devetopmenti proaraois - begfcining
-Camps
-Structured/monitored access
-55+ weilnes services
-Rental/government-non-City of Carlsbad
-ipetial events-social
-fientais/governraeiit-CttvofCartsbad
-Orop-in/non-monhored access
-Inclusion services
-Departmental aflmkifctrailve suppon
2001 GroenPlay. LLC
Draft (November 10, 2009)12
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
APPENDIX B;
Glossary of Terms and Definitions - Accounting, Business Planning, Cost Recovery
Ability to Pay:
Ability to pay is based on an individual's financial circumstances; it is not related to who benefits from
programs and services.
Active Use Spaces:
Spaces that are available to the public. Costs are allocated to active use spaces whether they generate
revenue or not. v
City-wide Administrative and Support Services:
Support services include costs that are not directly attributable to any particular public service. They
include legal services, finance, and human resource^ ^
• '"; „ -w-# ' ."-,
Advisory Groups: > ; $^
v> \
Groups (Boards, Commissions, or Committees) that are appointed by the City Council or through
agreements with other agencies to provide recommendations to theCity Council pertaining to specified
operational and/or planning functions. Membership may include City^^ncil members, staff members,
organizations and/or citizens. These groups maybe longstanding or temporary project specific advisory
groups.
Age Categories:
Sometimes age is defined by age range, for the purposes of assigning user fees, into which participants
and users can be classified.
Alternative Funding:
Other ways to improve cost recovery in addition to fees and charges; may include grants, sponsorships,
partnerships, fundraising, and volunteers.
Alternative Providers:
Community organizations and businesses that provide similar or like services to those of the Department
(e.g., YMCA, Boys and Girls Club).
Asset Lifecycle:
The expected usable life of a particular piece of equipment or asset before replacement.
Attendance:
Draft (November 10,2009) 13
3?
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
Attendance is measuring the total number of participants registered in a program. In a tournament,
festival, event, or drop in sports activity it is the number of participants and/or spectators at that one-
time event.
Benefit:
The degree to which services (including programs, facilities and parks) impact the public (individual and
community), or in other words, the results or outcomes of services.
For example, the National Recreation and Park Association defines the benefits of parks and recreation
as:
• Personal well being (e.g., joy, happiness, feel good)
• Socialization
• Lifelong learning
• Healthy lifestyle - life long wellness
• Economic development and vitality
• Environmental stewardship
Benefit versus Value or Intent:
The degree to which services including programs, facilities and parks impact the public (individual and
community), or in other words, the results or outcomes erf services. Value is the judgment of worth or
the degree of usefulness or importance placed on a servfct &?personal opinion. The intent or intention
of a service is the purpose, aim or end.
Capacity:
The number of avaM|We spaces at a site, in a class, at an event or facility.
,, '--X^' ,~^ *\
Consensus: :^:i.
Resolution reached among all differing opinions after discussion or deliberation and compromise,
sometimes refemMl^to as "inform®tconsent.* It does not necessarily mean 100% agreement with
everything.
Customer Satisfaction:
The degree to which customer expectations are met. This is measured by customer feedback, not
necessarily by measuring the number of repeat visits or new users.
Direct Cost:
Includes all the specific, identifiable expenses (fixed and variable) associated with providing a service
including programs, facility and/or parks. Direct costs would not exist without the service and variable
direct costs may increase proportionately.
Draft (November 10, 2009) 14
39
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
Enterprise Fund:
An enterprise fund is a separate fund where fees or rates are set to cover 100% of all the program or
service costs. In essence, it is not subsidized by the General Fund.
Exclusive Use:
Scheduled, planned or programmed use of a facility or space that is limited or restricted to an identified
individual or group. They have exclusive use of a facility or space for a specified period of time.
For-Profit/Private Group or Individual:
A group or individual who does not have an IRS non-profit or governmental designation exempting them
from paying taxes.
Full Cost Recovery Fee:
The fee recovers the total cost of a service or program including all direct and indirect costs, enabling
the breakeven point to be reached. Full-cost recovery is often used as a strategy for services perceived
as "individual," benefiting only users white offering minimal external benefits to the general community.
Full-Time/ Three Quarter Time Employee:
A regular employee who works at least 30 hours per week far three quarter time and 40 hours per week
for full-time on a regularly scheduled basis. These employees are eligible for the City's benefit package.
Governmental Group:
• ^
Any inter-Dej^pftint* county or other federal, state or local governmental group.
:^\,-.,,^i0' - >;!-
Indirect Cost:
Encompasses remaining overhead (fixed and variable) not identified as Direct Costs associated with a
specific prograr£fi|service. Thest Indirect Costs would exist without any one specific service.
Market Rate Fee: \^
-{ ^H*/^, "^ " t
Fee based on demand for a service or facility. One consideration for establishing a market rate fee is
determined by identifying all jSroviders of an identical service (i.e. private sector providers, other
municipalities, etc.), and setting the highest fee. Another consideration is setting the fee at the highest
level the market will bear.
Membership:
Membership is a count of how many belong to a club or group. Membership is the number of people
who have a right to a facility or program (also often used for annual, semi-annual or monthly pass
holders). Membership can be paid or unpaid. A possible feature could include restricted access, and or
privileges to the site, program, or facility.
Draft (November 10, 2009) 15
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
Minimum Service Level:
Minimum level of maintenance and staffing needed to safely and reasonably operate a service including
a program, facility or park.
Non-Profit Group:
Agencies outside of the Parks and Recreation Department with IRS non-profit status.
Non-User: »
Those individuals who are not currently using the parks, facilities, taking the programs or using the
Department's facilities or services.
Optimum Service Level: " '
The highest service level with the most efficient management of a program and facility service; a
function of maintenance levels, staffing levels, types ar*tfiiymber«fiimenities available (picnic sites,
nature trails, restrooms, recreation centers, etc.). *
Off-Peak:
Period of anticipated low demand for services tnd programs* - ^
0 ^ " ;>
Part-time Hourly Employee:
Regular employee who is scheduled to Work less than 1*000 hours within a fiscal year. These employees
receive only legally mandated benefits {such as workers' compensation and Social Security).
Partial Cost Recovery:
The fee recovers the partial cost of a service or program including direct and indirect costs. Partial-cost
recovery is often used as a strategy for services perceived with a higher amount of community benefit.
Participant/Guest/Spectator, User/Visitor:
A person who uses services and visits parks or facilities.
Participation:
Participation refers to the number of those who are enrolled or partaking in a program, workshop,
activity or event. They are the contributors or users, the enrollees or class attendees.
Draft (November 10, 2009) 16
¥/
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
Participation Rates and Capacity:
Over and under capacity issues can be addressed by giving certain individuals including residents pre-
registration priority, adjustments to the price based on peak or off-peak time or a market price
differential.
Passive Use Spaces:
Portions of the park that are not programmable do not generate revenue, and therefore no costs were
allocated for the purposes of the cost recovery pyramid.
Peak:
Period of highest demand for services and programs. Peak and off-peak categorizations may vary for
services and programs within a facility or park. For example, in a park, day use may be highest during
the same time period in which demand for a program is low.
Performance Measures:
Performance measures are quantifiable evaluations of the organization's key performance areas on a
pre-determined set of criteria measured over time. The agreed upon standard performance measures
allows the organization to judge its progress overtime (internal and external benchmarking) and identify
areas of strength and weakness.
Price Differentials:
;
Offering variations of the price to a particular grou|%.which may achieve more equitable and efficient
service delivery. Different groups are charged different prices for the same service, even though there is
no direct corresponding difference in the costs of providing the service to each of these groups. Price
different^pfi"be'ba««J.Qn resident (tax payerVnon-resWent, age categories, location of facility, time
or season, quantity of use, incentives, etc.
Program:
The activities and special events offered by the Department at various locations with specific participant
purposes such as education, skill development, socialization, or health.
N \
Program Life Cycle: >
.^;'K' * „ *
Program Life Cycle is when participation and interest in a particular program wanes to below an
acceptable level, the program is cancelled.
Rentals:
This includes service to our customer for the exclusive use of designated space(s) and equipment. This
may include the non-exclusive use of other amenities.
Draft (November 10, 2009) 17
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
Resale:
This category includes the selling of merchandise, food and beverage.
Subsidy:
Taxes and other financial vehicles that are used to financially support Department services including
programs, facilities and parks. Subsidy dollars provide for service costs (direct and/or indirect) that are
not covered by user or participant fees, or other forms of alternative funding.
Draft (November 10, 2009) 18
¥!>
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
APPENDIX C:
Developing a Pricing Strategy
1. Understanding financial trends
The increasing complexity and resulting economic shifts have led to what can be deemed as constant
fiscal change in government. Public sector administrators and managers must be prepared to respond to
the fiscal realities that have resulted from these economic shifts. Trends that have impacted fiscal and
pricing decisions include:
• Increased governmental accountability
• Increased demand for people's "leisure dollar"
• On-going or increased demand for services with no/limited additional funding
• Disinterest in service reductions or increased fees and charges
• Increased operating expenses (e.g., utifttli&, fuel, personnel, supplies)
'^Ife- if|u
2. Understanding the Department's budget process and fiscal year cycle
Budgets are viewed as annual financial plans and include planning and forecasting, establishing
priorities, and a means to monitor fiscal process. This overview allows for an abbreviated look at the
Department's process and how it is impacts and is impacted by pricing.
3. Understanding the costs of service provision
Prior to making pricing decisions, is ft important to understand the different types of service provision
costs. Having a grounded knowledge of,the various types of costs allows staff to make informed pricing
decisions. The different types $f service provision costs are as follows:
• Direct costs
• Fixed costs
• Changing fixed costs
» Variable costs
• Indirect Costs
4. Understanding the purpose of pricing
There are many reasons to develop service fees and charges. These include, but are not limited to the
following:
• Recover costs
• Create new resources
• Establish value
• Influence behavior
• Promote efficiency
Draft (November 10, 2009) 19
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
5. Pricing strategies - differential pricing
Differential pricing is grounded in the notion that different fees are charged for the same service when
there is no real difference in the cost of providing the service. There may be many reasons the
Department may wish to consider this pricing strategy including:
• To stimulate demand for a service during a specified time
• To reach underserved populations
• To shift demand to another place, date or time
6. Alternative funding sources
In general, there has been a decrease in the amount of tax support available to public parks and
recreation departments. As such, the need to look at alternative funding sources as a way to financially
support services has become commonplace. Alternative funding sources are vast and include:
• Gifts
• Grants
• Donations
• Sponsorships
• Collaborations
• Volunteer contributions
7. Examining the psychological dimensions of pricing
In addition to the social and environmental issues that surround pricing, the human elements of pricing
must be considered. Regardless of how logical a prioJMnay seem, customer reactions and responses are
unique and may be vastly different than what one might expect. The psychological dimensions of pricing
include: -: ,>
• *t Protection of s«pB$teern (pricing in such a way as to not offend certain users)
• fee-quality relatWns|iip (valut received for every dollar spent)
• Establishing a reference point (worth of service in comparison to others)
• Objective price (price h^s a basis in fact, is real and impartial)
• Subjective price (price tinot biased or prejudiced)
• Consistency of image (perception of the brand and identification with product or service)
• Odd pricing (plftiS^fe*! of arbitrary or incongruent pricing)
8. Establishing initial price
Establishing an actual price for a program can be based upon a variety of strategies. Arbitrary pricing is
not encouraged as it is impossible to justify. Pricing strategies include:
• Arbitrary pricing - a fee based on nothing rational. For example, raising all fees by $.25 to meet
budget goals; this approach ignores market conditions and cost recovery goals.
• Market pricing - a fee based on demand for a service or facility or what the target market is
willing to pay for a service. The private and commercial sectors commonly utilize this strategy.
Draft (November 10, 2009) 20
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
One consideration for establishing a market rate fee is determined by identifying all providers of
an identical service (i.e. private sector providers, other municipalities, etc.), and setting the
highest fee. Another consideration is setting the fee at the highest level the market will bear.
• Competitive pricing - a fee based on what similar service providers or close proximity
competitors are charging for services. One consideration for establishing a competitive fee is
determined by identifying all providers of an identical service (i.e. private sector providers, other
municipalities, etc.), and setting the mid-point or lowest fee.
• Cost recovery pricing - a fee based on cost recovery goals within market pricing ranges.
9. Understanding price revisions
Once a price is established, there may be the need to periodically review the price and examine the
need for revision. In some cases, "revised" may be viewed as Increased", therefore, a systematic
approach to pricing revision us important. Factors to consider ?n pricing revision include:
• Customer tolerance - the degree to which sma( increases in price wtt not encounter client
resistance.
• Adjustment period - the period of time where the value of the service is assessed by the
customer in relation to the price increase. The value of the service from the customer's
perspective must meet or exceed the impact of the increased cost. Adjustment periods may lead
to diminished participation or termination of participation altogether based upon customer
loyalty and other factors.
• Customer's perceived value of the service - the degree to whfch services including programs,
facilities and parks impact the public (Individual and community), or in other words, the results
or outcomes of SftftfceV. Value is the judgment 0r perception of worth or the degree of
usefulness or importance pfatted on a service toy personal opftffon. The intent or intention of a
service is the purpose, aim or end.
10. The pricing process-developing a method
This method is based upon using cost recovery goats as a primary pricing strategy, followed by either
market pricing (for services with low alternative coverage - few if any alternative providers) or
competitive pricing (for services with high alternative coverage - other alternative providers offer similar
or like services). These recommended pricing strategies are detailed in the Department's Service
Portfolio (Appendix D).
11. Comparative Analysis Criteria
As part of a pricing methodology, comparative analysis of differing fees structures can reveal market
rates and competitive pricing in the market place. Comparative analysis (benchmarking) is an important
tool that allows for comparison of certain attributes of the City's management practices and fee
structure. This process creates deeper understanding of alternative providers, the Department's place in
the market, and varying fee strategies, which may be used to enhance and improve the service delivery
of parks and recreation (Appendix E).
Draft (November 10, 2009) 21
¥(,
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
APPENDIX D
City of Carlsbad Parks and Recreation Department Service Portfolio with Provision Strategies including
Cost Recovery Goals:
City of Carlsbad
Parks and Recreation
Department
Service Portfolio • Provision Strategies including Cost Recovery Goals
Type of Service Category of Service Beneficiary of Service
Cost
Recovery
Goal Range Provision Strategy
Ancillary Services
Facility Rentals -Shelters
Facility Rentals -Center Rooms
Facility Rentals -Pool Lap Lanes
Facility Rentals -Athletic Fields
Lagoon Permitting
Equipment Rentals
ADA Compliance Inclusion Programs
Volunteer Program
TRUST (Teaching Respect Unity
Sportsmanship Teamwork)
Rentals -a/b/c/d
Rentals -a/b/c/d
Rentals -a/b/c/d
Rentals -a/b/c/d
Lagoon Permits
•quipment Rentals
nclusion Services
Departmental Administrative Support
Instructional/Development Programs -
beginning
)ependent on
classification of user
Dependent on
classification of user
Dependent on
classification of user
Dependent on
classification of user
•lighly Individual
Highly Individual
Community
Community
Individual/Community
0-100%+
0-100%+
0-100%+
0-100%+
100+%
100+%
0%-15%
0%-15%
50% -80%
Growth - Advance Market Position
Com pete -Affirm Market Position
Growth - Advance Market Position
Growth - Advance Market Position
Divest
Compete • Affirm Market Position
Core Service
Compete - Affirm Market Position
Growth - Advance Market Position
Aquatics
Community Water Safety Programs
Recreational Swim
Adult Lap Swim
Special Event -Ufeguard Games
Masters Swim Program
Safety Training -staff
Guard Start -public
Group Swim Lessons
Private Lessons
Instructional/Development Programs - a/b/c
Drop-in Monitored Access
Drop- in Monitored Access
Special Events
Instructional/Development Programs - a/b/c
nstructional/Development Programs - a/b/c
nstructional/Development Programs - a/b/c
Instructional/Development Programs- a/b/c
Individualized Lessons
Dependent on level of
irogram
Community/Individual
Community/Individual
Community/Individual
Dependent on level of
program
dependent on level of
program
Dependent on level of
program
dependent on level of
irogram
Highly Individual
50% -100%+
15% -50%
15% -50%
15% -50%
50% -100%+
50% -100%+
50% -100%+
50% -100%+
100+%
Growth - Advance Market Position
)ivest or reconfigure to a "teaching"
facility
Compete - Affirm Market Position
Compete - Affirm Market Position
Compete - Affirm Market Position
Growth -Advance Market Position
Growth - Advance Market Position
Compete - Affirm Market Position
Compete - Affirm Market Position
Pricing Strategy
Cost Recovery; Secondary- Market
Jist Recovery; Secondary - Competitive
Cost Recovery; Secondary - Market
Cost Recovery; Secondary - Market
Cost Recovery; Secondary - Market
Cost Recovery; Secondary - Competitive
Cost Recovery or no fee;
Secondary -Market
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Market
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary- Market
Cost Recovery; Secondary- Market
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Draft (November 10, 2009)22
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
City of Carlsbad
Parks and Recreation
Department
Service Portfolio • Provision Strategies including Cost Recovery Goals
TypeofSenke
Arts
Creative/Visual Arts
routh Classical/Studio Dance Beg
youth Classical/Studio Dance Int
Youth Classical/Studio Dance Adv
Adult Social Dance
ithnic Dance
Performing Arts -Music
Performing Arts -Theater
Cooking
Holiday
routh Nutrition
Early Childhood
Arts
Health and Wellness Classes
Lifeskills and Education
Fitness
Aerobics
Mental and Physical Conditioning
Category of Service
nstructional/Development Programs - a/b/c
nstructional/Development Programs -
beginning
Instructional/Development Programs -
intermediate
Instructional/Development Programs -
advanced
Instructional/Development Programs - a/b/c
Instructional/Development Programs - a/b/c
Instructional/Development Programs - a/b/c
Instructional/Development Programs • a/b/c
Instructional/Development Programs - a/b/c
Instructional/Development Programs - a/b/c
Instructional/Development Programs - a/b/c
Instructional/Development Programs - a/b/c
Instructional/Development Programs - a/b/c
nstructional/Development Programs - a/b/c
Instructional/Development Programs- a/b/c
Beneficiary of Service
Dependent on level of
program
ndividual/Community
Mostly Individual
Highly Individual
Dependent on level of
jrogram
Dependent on level of
jrogram
Dependent on level of
program
Dependent on level of
program
Dependent on level of
program
jrogram
Dependent on level of
program
Dependent on level of
program
Dependent on level of
program
Dependent on level of
program
Dependent on level of
program
Cost
Recovery
Goal Range
50X-100X+
50% -80%
80% -100%
100t%
50% -100%+
50% -100%+
SOX- 10W
50% -100%+
50% -100%+
50% -100%+
50% -100%+
50% -100%+
50% -100%+
50% -100%+
50% -100%+
Provision Strategy
Compete -Affirm Market Position
Compete -Affirm Market Position
Compete -Affirm Market Position
Collaborate or Divest
Divest
Collaborate or Divest
Growth -Advance Market Position
Collaborate or Divest
Compete -Affirm Market Position
Invest, Collaborate, or Divest
Growth -Advance Market Position
Compete • Affirm Market Position
Growth - Advance Market Position
Compete - Affirm Market Position
Change marketing message to be non-
threatening and entry ievei
Compete -Affirm Market Position
Pricing Strategy
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary- Market
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary- Competitive
Cost Recovery; Secondary- Market
Cost Recovery; Secondary -Market
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary- Market
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary • Competitive
Draft (November 10, 2009)23
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
City of Carlsbad
Department
Service Portfolio - Provision Strategies including Cost Recovery Goals
Type of Service
l3rtJ3lArts
Martial Arts Beg
Martial Arts Int/Adv
Preschool & Toddler Programs
Senior Center (55+)- Facility
Senior Center Fitness Room -drop-in
Senior Center Social Services- PC Lab;
Community Connections; Health
Screenings and Personal Services
Senior Center (60t|- Facility
Senior Center Congregate Meals -
onation requested & partially Wed by
federal grant
Senior -Home Meal Delivery -Federal
Grant
Senior Center Transportation Program -
lonation requested & partially funded by
ederal grant
Category of Service
nstructional/Devekpent Programs -
beginning
Instructional/Development Programs -
int/advanced
Drop-in Monitored Access
60+ Welness Services
60+ Wellness Services
Mete Services
60+ Wellness Services
Beneficiary of Service
ndMdual/Community
Mostly Individual flighty
ndividiial
Community/Individual
Individual/Community
Individual/Community
Individual/Community
Individual/Community
Cost
Recovery
Goal Range
m-m
801100%+
15%- 50%
50UW
50% -80%
50180%
50180%
Provision Strategy
Compete -Affirm Market Position •
Compete -Affirm Mate Position
Compete- Aim Market Position
Misnomer -of name -marketing message -
required parent participation
Compete -Affirm Market Position
Compete- Affirm Market Position
Compete -Affirm Market Position
"Timeshare owners11 taking advantage of
the service
Growtn- Advance Market Position
Seaice does not align with mission -as
agent1/ works to revamp values, vision,
mission, this is a consideration -social
service agency?
Pricing Strategy
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary -Competitive
Cost Recovery; Secondary -Competitive
Cost Recovery; Secondary • Competitive
Cost Recovery; Secondary -Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary- Market
Cost Recovery; Secondary- Market
Draft (November 10, 2009)24
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
City of Carlsbad
Parks and Recreation
Department
Service Portfolio • Provision Strategies including Cost Recovery Goals
Type of Service
Senior- Enrichment Classes
Heattti and Wellness Services
Arts Classes
Technology Classes
Senior -General
Senior Center - Ongoing Activities - Bingo
by Non-Profit
Senior -Safari Excursions
)ay Trips
Overnight Trips
Special Events
Health & Wellness Expo
Triathlon
Community-Wide Social Events (Family
Movie Night in the Park)
Cove
Community-Wide Social Events (Friday
Night Film Festival -Carrillo Ranch)
IGGstravaganza Spring festival
Carlsbad Loves Kids
Dinner & A Movie
Pumpkin Plunge
Category of Service
60+ Wellness Services
Instructional/Development Programs - a/b/c
Instructional/Development Programs - a/b/c
Rentals -non-profit
Trips
Trips
Special Events -social
Special Events -competitive
Special Events -social
Special Events -social
Special Events -social
Special Events -social
Special Events -social
Special Events -social
Special Events -social
Beneficiary of Service
Individual/Community
dependent on level of
}rogram
Dependent on level of
program
Individual/Community
Highly Individual
Highly Individual
Community/Individual
Mostly Individual
Community/Individual
Community/Individual
Community/Individual
Community/Individual
Community/Individual
Community/Individual
Community/Individual
Cost
Recovery
Goal Range
50%- 80%
50% -100%+
50% -100%+
50% -80%
100+%
100+%
15% -50%
80% -100%
15% -50%
15% -50%
15%-50%
15% -50%
15%- 50%
15% -50%
15%-50%
Provision Strategy
Compete -Affirm Market Position
Competition against ourselves - divest of
:ree classes or divest fee-based programs
Compete -Affirm Market Position
Competition against ourselves - siivest of
iee classes or divest fee-based programs
Growth -Advance Market Position
Invest, Collaborate (best choice) or Divest
Compete -Affirm Market Position
Drvest
Divest
Com pete -Affirm Market Position
Core Service
Growth - Advance Market Position
;ore Service
Divest
Growth -Advance Market Position
Growth - Advance Market Position
Growth -Advance Market Position
Pricing Strategy
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary • Market
Cost Recovery; Secondary -Market
Cost Recovery; Secondary- Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Market
Cost Recovery; Secondary - Market
Cost Recovery; Secondary- Market
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary- Market
Cost Recovery; Secondary- Market
Cost Recovery; Secondary • Market
Draft (November 10, 2009)25
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
City of Carlsbad
Parks and Recreation
Department
Service Portfolio - Provision Strategies including Cost Recovery Goals
^^^^•^^^^H
Type of Service
Special Events
Fall Festival at the Ranch
Holiday at the Rancho
Teen Scene
Hot Rods & Cod Treats
Category of Service
Special Events -social
Special Events -social
Special Events -social
Special Events -social
Beneficiary of Service
Community/Individual
Community/Individual
Community/Individual
Community/Individual
Cost
Recovery
Goal Range
15% -50%
15% -50%
15% -50%
15% -50%
Specialty Classes
Sports: Adult
5-Man Basketball League
Soccer League
Softball League
Sports: Enrichment Classes
Golf
Cheerleading
Gymnastics
Tennis
Volleyball
Sports: Youth
Basketball 3rd -8th grades
Basketball Clinic 3rd -8th grades
Pee Wee Indoor Soccer 4-6 years
Pee Wee Basketball 1st -2nd grades
NFL Punt Pass and Kid
Leagues/Teams
Leagues/Teams
Leagues/Teams
nstructional/Development Programs - a/b/c
Instructional/Development Programs - a/b/c
Instructional/Development Programs - a/b/c
Instructional/Development Programs - a/b/c
Instructional/Development Programs - a/b/c
Leagues/Teams
nstructional/Development Programs -
beginning
Leagues/Teams
Leagues/Teams
Special Events -social
Individual/Community
Individual/Community
Individual/Community
Dependent on level of
jrogram
Dependent on level of
jrogram
Dependent on level of
program
Dependent on level of
jrogram
Dependent on level of
program
ndividual/Communfty
ndividual/Community
Individual/Community
Individual/Community
Community/Individual
50% -80%
50% -80%
50% -80%
50% -100%+
50% -100%+
50% -100%+
50% -100%+
50% -100%+
50% -80%
50% -80%
50% -80%
50% -80%
15% -50%
Provision Strategy
Complementary Development
Compete - Affirm Market Position
Market venue or activity or both
Growth - Advance Market Position
Invest, Collaborate (best choice), or Divest
Compete - Affirm Market Position
Growth - Advance Market Position
Compete - Affirm Market Position
Compete - Affirm Market Position
Collaborate or Divest
Compete - Affirm Market Position
Compete - Affirm Market Position
Compete - Affirm Market Position
Compete - Affirm Market Position
Growth - Advance Market Position
Compete - Affirm Market Position
Compete - Affirm Market Position
Growth -Advance Market Position
Pricing Strategy
lost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary- Market
Cost Recovery; Secondary - Market
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary- Market
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Market
Cost Recovery; Secondary - Competitive
ist Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Market
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary - Market
Draft (November 10, 2009)26
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
City of Carlsbad
Parks and Recreation
Department
Service Portfolio • Provision Strategies including Cost Recovery Goals
Type of Service Category of Service Beneficiary of Service
Teens
Counselors in Training) beginning Individual/Community
reen lunch time program at schools
Youth Day Camps
Art Camps
ports & Fitness Camps
Traditional Camps
Specialty Camps
nstnictional/Devekpent Programs -
beginning
Camps
Camps
Camps
Camps
Individual/Community
Individual/Community
Individual/Community
Individual/Community
Individual/Community
Cost
Recovery
Goal Range
50%-80%
50%-sox
50%- 80%
50% -80%
50% -80%
50%-80%
Provision Strategy
Invest, Collaborate, or Divest
Growth -Advance Market Position
Com pete- Affirm MaftetFasiticn
Compete -Affirm Market Position
Com pete -Affirm Market Position
Compete • Affirm Mrfet Position
Facilities • Stagecoach/Calavera Hills Community Center
Night/Time
Community Center Gymnasium Open Play
Facilities -Hidden Canyon Dog Park
Facilities -Safety Center Skatepark
)rop-in Monitored Access
Drop-in Monitored Access
Drop-in Non-monitored Access
Drop-in Non-monitored Access
Community/Individual
Community/Individual
Community
Community
15%- 50%
15%- 50%
0%-15%
OX -15*
Growth -Advance Market Position
Compete- Affirm Market Position
Growth -Advance Market Position
Growth -Advance Market Position
Facilities- Leo Carrillo Ranch Historic Park
Fours: Guided & self-guided w/donations
encouraged
Museum visits w/donations encouraged
4th grade Art & History Program
)rop-in Monitored Access
Drop-in Monitored Access
Instructional/Development Programs -
beginning
Community/Individual
Community/Individual
Individual/Community
15%- 50%
15%- 50%
50%-80%
Growth -Advance Market Position
Growth -Advance Market Position
Growth -Advance Market Position
PridngStrategy
Cost Recovery; Secondary- Market
Cost Recovery; Secondary- Market
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary • Competitive
Cost Recovery; Secondary- Competitive
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary -Market
Cost Recovery; Secondary - Competitive
Cost Recovery; Secondary -Market
Cost Recovery; Secondary -Market
Cost Recovery; Secondary- Market
Cost Recovery; Secondary- Market
Cost Recovery; Secondary -Market
Draft (November 10, 2009)27
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
APPENDIX E:
Comparative analysis criteria:
Comparative analysis (benchmarking) is an important tool that allows for comparison of certain
attributes of the Parks and Recreation Department's management practices and fee structure. This
process creates deeper understanding of alternative providers, the Department's place in the market,
and varying fee strategies, which may be used to enhance and improve the service delivery of parks and
recreation.
It is very difficult to find exact comparable communities because each has its own unique identity, ways
of conducting business, and differences in what populations they serve. The political, social, economic,
and physical characteristics of each community make the policies and practices of each parks and
recreation department unique. It is important to keep in mind that while many park and recreation
departments serve primarily residents, others serve a Jane portion of non-residents, while still others
cater to the tourism market.
Despite efforts to promote uniformity in comparison, Organizations often have slightly different fee
structures and associated benefits. For example, some i^i^s and flKteation departments may not
report all benefits associated with the purchase of a centerlaernbership, or may not explain the breadth
of indoor recreation spaces they have in the same way as another. The availability of detailed
information may also be limited. *'•"
Additionally, organizations typically do not define the expenditures of parks, trails, facilities, and
maintenance the same w*^» Agencies also vary lii-termsof ftittiitHie^ organize their budget information
and it may be difficult to assess whether or not the past year's expenses are typical for the community.
Despite these inherent limitations, the comparative analysis and fee comparisons criteria presented in
this document should be used as a catalyst for the Parks and Recreation Department to continue to
research fees, market position, and best practices for m$fe specific areas when they are needed.
'/ '„ '', ' '-''" ^' '.'! ,v
Comparative Analysis Data Sought
The communities selected for benchmarking data should be chosen primarily for their proximity and
perceived similarities to the City of Carlsbad. Requested comparative data in addition to service specific
fee structure may also include:
• Values, vision, and mission of the organization
• Population and demographics
• Median household income and household size
• Prior year budget, actual expenses, and revenues for the entire department
• Prior year budget, actual expenses, and revenues for the parks and recreation divisions
• Number and square footage of community and recreation centers
• Total acres of open space and developed park land
• Number of maintenance acres contracted out and maintenance description
• Total miles of department maintained trails
• Number of indoor and outdoor pools
• Number of lighted and unlighted Softball/baseball fields
Draft (November 10, 2009) 28
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
• Recreation and parks department full-time employees and full time employee equivalents (FTE).
Often, comparative analysis data seeks to weigh pertinent data along with comparing against a "per
thousand" population calculation for categories including: total department budget, total acres,
developed acres, miles of trails, community and recreation center square footage, number of pools,
number of athletic fields, and recreation FTEs. Parks expenses and FTEs can be calculated per developed
acre. Population, demographics, median household income, and household size estimates can be
provided by the US Census.
Fee Comparison Considerations
To compare fees, other factors should be considered along with the price or fee charged for a program,
rental, admission, pass, or other services. Be sure to include comparative data for each fee as applicable:
• Program contact hours
• Program session length
• Student/teacher ratio
• Contractor or in-house instructional staff
• Instructor qualifications
• Program quality
• Materials included or additional fees
• Set up, tear down and preparation time included
• Facility amenities included in admission or pass
• Programs included with admission or pass
• Towel service, locker, equipment usage included or extra
• Hours of operation or availability of service
• Peak or off peak pricing
Value added amenities or services
Service area demographics
Subsidy versus cost recovery goals
Use of alternative funding
Draft (November 10, 2009) 29
City of Carlsbad Parks and Recreation Department Fees and Charges Policy
APPENDIX F
Parks and Recreation Department Master Fee Schedule
Insert schedule of fees here.
Draft (November 10, 2009) 30
Parks and Recreation Department
Draft Fees and Charges Policy
Parks and Recreation Commission
November 16, 2009
Recommended action
i Receive Presentation
Information item only
This is a draft policy - questions, comments and
suggestions are welcomed throughout the
presentation
Statement of authority
« Council could delegate authority to City
Manager or Parks and Recreation
Director
- To set all fees
- Or set fees within a prescribed range of +/-
25%
i Foundation of this policy is grounded in
the "Core Services, Resource Allocation,
and Pricing Strategies" report
Statement of purpose
t Adjust to current economic conditions and
budget reductions
a Avoid reductions in service
• Reliance on alternative funding sources
• Align pricing strategy with cost recovery
objectives
Statement of purpose (cont.)
"Cost recovery goals, as determined by this policy,
are intended to be averages across Parks and
Recreation Department programs and services..
Over- or under-achievement of these cost recovery
goals by any particular site, program, or service is
acceptable in order that the programs and service fit
the realities of the marketplace and the community
while maximizing participation, making efficient use
of parks and recreation facility capacity, and
maintaining a broad and diverse array of program
and service offerings."
Statement of Philosophy
i The Park and Recreation Department's mission,
vision, project vision and values
« Core values
* Community target issues
Potential core elements of a
fees and charges policy
Classification of applicant:
Non-profit user criteria
Refunds
Returned check policy
Applicant fee reduction
Categories of service
'rograms and services are organized into 16
different categories
Include a listing of services in each category
These categories help to determine, in part,
how much of a service's cost will be
recovered through user fees and other
charges
A target cost recovery range is included for
each category of service
Determining fees and charges
Fees and charges are only one means
to attain cost recovery goals
- Donations
- Sponsorships
- Collaborations
- Volunteer opportunities
Fees and charges will be evaluated
and set using the following process
• Determine the category of service
-New programs or services should be
considered by a staff committee and
classified according to the MacMillan
Matrix
Determining fees and charges (cont.)
« MacMillan Matrix criteria/filters are used
to determine program or services
-Fit
- Service attractiveness
- Alternative coverage
- Competitive position
Determining fees and charges (cont.)
• Establish the direct and indirect costs of providing
* For reporting and budget purposes, direct and
indirect costs have been defined and identified;
however, further discussion remains regarding the
exact percentage of those costs that will be applied
to the cost recovery model
Determining fees and charges (cont.)
* Determine the fee or charge by
- Considering the cost recovery range
outlined in the Categories of Service
a Cost recovery range will vary
depending upon the level of the
Pyramid where the program or service
is classified
Determining fees and charges (cont.)
• Utilize pricing strategies
- Financial trends
- Budget process and fiscal year cycle
- Costs of providing the service
- Purpose of pricing
- Differential pricing
-Alternative funding sources
- Psychological dimensions of pricing
- Establishing an initial price
- Price revisions
Determining fees and charges (cont.)
« "The method" - Service Portfolio
» Cost recovery goals as primary pricing strategy
• Market pricing for programs or services with low
alternative coverage and few, if any, providers, or;
• Competitive pricing for programs or services with
high alternative coverage and alternative providers
offering similar or like services
Determining fees and charges (cont.)
• Comparative data analysis
• Benchmarking (comparative analysis) is an
important tool that allows for comparison of certain
attributes of the City's management structure and
fee structure
• Answers important questions
- Where do we belong in the market
- How do other cities set fees?
• Information may be used to improve service delivery
Determining fees and charges (cont.)
• Comparative data may include
• Values, vision, and mission
• Population and demographics
• Median household income and household size
• Budget, revenue, and expense comparisons
• Square footage of facilities
• Park acreage
• Aquatics facilities
• Total number of full and part time employees
Determining fees and charges (cont.)
• Fee review
- The Parks and Recreation Department will
formally review the fee schedule on an
annual basis
Questions or Comments?
'Cost recovery goals, as determined by this policy, are intended to
be averages across Parks and Recreation Department programs
narketplace and the community while maximizing participation,
making efficient use of parks and recreation facility capacity, and
laintaining a broad and diverse array of program and service