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Home My WebLink About3/24/2004 - STAFF REPORTS (7) DATE: Mr_aFhA 7-,-2004— TO: City Council FROM: Director, Department of Parks and Recreation ADDITIONS AND AMENDMENTS TO THE COMPREHENSIVE FEE SCHEDULE RECOMMENDATION: That City Council amend the City's Comprehensive Fee schedule to establish a Nonresident Annual Membership Card for the skate park, a Three-Day Pass for out-of-town guests, and both half-day and full-day rental fees for the skate park to allow for private parties and special events. SUMMARY: Currently, the skate park charges daily admission of $5 to nonresidents, while Palm Springs residents pay only $10 per year for an annual membership. Staff is requesting that annual memberships be extended to nonresidents 18 years of age and under for a fee of$40. No daily fee will be charged for skate park members; only walk-up patrons and nonresidents over the age of 18 will be charged the current$5 daily fee. For visitors, staff is also requesting that a three-day pass be created for out-of-town guests wishing to use the skate park. The cost of the proposed pass is $10, essentially giving guests a free day at the skate park. In an effort to promote special events and accommodate requests for private party rentals, staff is recommending a $100-per-hour rental fee for the skate park with a three-hour minimum rental and a$600 full-day rental rate.As with all skate park patrons, everyone using the park for rentals and those purchasing nonresident memberships or three-day passes will be required to sign our standard Liability Release and Rules form. BACKGROUND: The City has a Comprehensive Fee Schedule that regulates what fees are charged for various City services. From time to time,these fees are modified when new services are offered or when rates require adjustment to become more competitive. Staff is recommending that City Council adopt a Resolution establishing fees for nonresident memberships, a fee for three-day passes, and a fee for both half-day and full-day rentals. As staff neared completion of the Palm Springs Skate Park, both the City Council and the Parks and Recreation Commission reviewed skate park fees and operating hours on two different occasions. Each time the issue was presented to both entities, there was the desire to provide the lowest possible fee to residents of Palm Springs, charge a somewhat higher fee to nonresidents and have the park available for use throughout the day. a� ADDITIONS AND AMENDMENTS TO THE COMPREHENSIVE FEE SCHEDULE DATE: March 17, 2004 PAGE: Two In the past ten weeks of operation, staff has had the opportunity to better evaluate exactly when the park is being used, by whom it is being used, and to what extent fees might be adjusted to maximize use and optimize revenue generation, yet remain affordable to everyone. On February 11, 2004, City Council approved Amendment No.10 to the City's Allocated Positions Plan, authorizing three(3)full- time equivalent (FTE) positions to man the skate park and swim center. With the added expense of these employees and the recommended changes to the current fee structure, staff estimates a slight profit in annual operations and little adverse impact to local skaters through the proposed changes. Staff is recommending that a nonresident fee be created for anyone 18 years of age and under and offered to the general public under the existing terms and conditions of the skate park rules for $40 per year. It is not believed that this will create crowded conditions detrimental for use of the park by residents nor negatively impact revenue recovery for the park itself. Staff believes that the $40 annual fee is a fair rate to pay for a nonresident membership and not as taxing to nonresidents as the $5 daily fee currently being charged. The $5 daily fee has become quite burdensome to many local area skaters who are frequent visitors of our great skate park. This change is also in response to a January 9 letter received from Ricky Wright, Principal, Palm Springs High School, requesting a special arrangement for school district students at the City's resident rate. Staff believes that extending the current resident rate of $10 to only the school district creates a significant negative cash flow for operations at the skate park- though it would not cause overcrowding. Extending the $40 annual membership benefits to nonresidents 18 years of age and under will create more memberships for the skate park and preserve skate park cash flows. It will also make the park affordable for the youth now using the downtown sidewalks as their skating locale, the prevention of which is one of the reasons the skate park was built. This approach is also consistent with what other regional parks have done when addressing the issue of resident and nonresident membership fees. Through the first ten (10) weeks of operations at the skate park, staff has accumulated the following statistics which were used in developing the basis for this recommendation. Total Admission Revenue $12,909 Total Concession Revenue (30% of sales) $ 5,356 Total Number of Daily Admissions 3,018 Total Number of Resident Cardholders 261 Total Number of Nonresident Admissions 2,060 Average Number of Admissions per week 300 Average Number of Nonresident Admissions per week 200 (50% over age 18) Average Number of Resident Admissions per week 100 Average Amount in Concessions - per person $1.78 (per visit) 1 Ar7ow ' ADDITIONS AND AMENDMENTS TO THE COMPREHENSIVE FEE SCHEDULE DATE: March 17, 2004 PAGE: Three Current Assumptions: (300 admissions per week: 100 resident, 200 nonresident) Includes three-day passes and rental fees Does not include nonresident memberships Resident Memberships 300 per year $ 3,000 ($10/year) Weekly Paid Admissions 200 per week $52,000 ($5/day) Vending Revenue 30% of gross $ 8,330 Rentals 3 half-day, 3 full-day $ 2,700 Three-Day Passes 100 per year 1,000 ($10) TOTAL REVENUE $67,030 Proposed Assumptions: (400 admissions perweek: 100 resident, 300 nonresident) Includes nonresident memberships, three-day passes and rental fees Resident Memberships 300 per year $ 3,000 ($10/year) Nonresident Memberships 600 per year $24,000 ($40/year) Weekly Paid Admissions 100 per week $26,000 ($5/day) Vending Revenue 30% of gross $11,107 Rentals 3 half-day, 3 full-day $ 2,700 Three-Day Passes 100 per year 1,000 ($10) TOTAL REVENUE $67,807 In a further effort to operate the skate park in the most efficient manner and cut back on expenses, staff recently reduced operating hours during low-use time periods. As of March 1, the skate park is now open Monday through Friday from 12:00 p.m. to 8:00 p.m. instead of 8:00 a.m. to 10:00 p.m. This will be the case for the winter months only while schools are in session. The park will remain open from 8:00 a.m. to 10:00 p.m. on weekends and holidays and throughout the summer months. This reduces the need to staff the office by 30 hours per week during the winter months and saves approximately $8,000 per year in staffing costs. Current annual operating estimates for the skate park are as follows, based upon Council's recent approval for allocated positions and the reduction in operating hours. Winter Staff Hours 68 hours/week x 34 weeks = 2,312 hours (cashier) Summer Staff Hours 98 hours/week x 18 weeks = 1,764 hours (cashier) Skate Park Monitor 4 hours/day x 365 days = 1_660 hours (monitor) TOTAL STAFF HOURS = 5,336 5,336 hours x $7.60/hour = $42,074 Wages 15% benefits = 6,311 FICA & Medicare TOTAL STAFF COST = $48,385 Wages and Benefits L5 ADDITIONS AND AMENDMENTS TO THE COMPREHENSIVE FEE SCHEDULE DATE: March 17, 2004 PAGE: Four Lastly, City Council requested at the February 11 Council Meeting that the electrical cost for operation of the overhead lighting be calculated into the park's operating expenses. The electricity provided to the lighting is generated by the City's Cogeneration Plant in Sunrise Plaza. The Facilities Maintenance Division has determined that the billing amount for the skate park lighting is at a rate of $2.52 per hour for all 49 lights. Staff estimates usage to be about four (4) hours per day throughout the year. $2.52 x 4 hours/day x 365 days = $3,679.20 Electrical Cost per year Projected net revenue with approval of modified fee structure as proposed. Gross Revenue $67,807 Wages & Benefits ( 48,385) Electrical Cost 3,680) NET PROFIT (Loss) $15,742 At its February 11 meeting, the Parks and Recreation Commission voted 8/1 to recommend that City Council establish a Nonresident Annual Membership Fee of $40 for persons 18 years of age and under, a Three-Day Pass for a fee of $10, and half-day and full-day rental fees as proposed. OTT MIKESELL, Director Department of Parks and Recreation APPROVE City Manager Attachments: 1. Letter from Ricky B. Wright, Principal, Palm Springs High School 2. Resolution REVIEWED BY DK OF FINANCE l ✓ ptq RESOLUTION NO. 20860 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING RESOLUTION 20362, CITY'S COMPREHENSIVE FEE SCHEDULE, TO ESTABLISH AN ANNUAL RESIDENT AND NON- RESIDENT MEMBERSHIP FEE, WEEKLY FEE, THREE-DAY ONLY PASS FEE, AND A PRIVATE PARTY RENTAL FEE FOR USE OF THE PALM SPRINGS SKATE PARK. ---------------- WHEREAS on June 5, 2002, the City Council adopted resolution 20362; and WHEREAS Resolution 20362 is the City's Comprehensive Fee Schedule; and WHEREAS the City Council desires to amend the Comprehensive Fee Schedule to establish an annual resident and non-resident membership fee, weekly fee, three-day only pass fee, and a private party rental fee for use of the Palm Springs Skate Park. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs, California, that Resolution 20362, establishing the Comprehensive Fee Schedule, is hereby amended, by the following: DEPARTMENT OF PARKS AND RECREATION Skate Park Fees Annual Resident Family Pass $25.00 per year Resident Membership Fee $10.00 per year Non-Resident Membership Fee $40.00 per year Annual Non-Resident Family Pass $100.00 per year Non-Member Daily Fee $5.00 Per day Three-day Pass $10.00 Private Party Rental Half Day (3 hour min) $300.00 Full Day $600.00 per day ADOPTED this 24" day of March, 2004. AYES: Members Foat, McCulloch, Mills, Pougnet and Mayor Oden NOES: None ABSENT: None ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED & APPROVED AS TO FORM: