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HomeMy WebLinkAbout2020-09-17 PRC Agenda Item 007 - Presentation 1 Parks and Recreation survives primarily on 2 revenue streams. Program revenue makes up about 25% of our revenue and has dropped to $0. Tax revenue, which drives our general fund allocation, has decreased overall due to COVID. CV Parks Maintenance budget is $6.6 million overall, with about $1.6 million in sports field maintenance (primarily water and staffing costs) [have budget sheet available]. Youth Sports organizations provide only between $6,500-$9,000 annually to the City in user fees, which is a cost recovery rate of only 0.5%. Tonight’s presentation discusses what rates would be needed to achieve full cost recovery, what other agencies across California are charging, and recommendations for fees and policies to be adjusted for youth sports organizations here in Chula Vista. 2 With the current $11/team charge, the equivalent per hour rate charged to the currently allocated youth sports organizations equals $0.04/hr. With an annual cost of almost $1.6 million, full cost recovery rates for field usage would be $20/hr, meaning the City currently subsidizes over 99% of the cost to use fields. 3 Here are some rates from other agencies across California for field usage. Many of the fees have ranges, which we will discuss in our recommendations moving forward. 4 The fee ranges from other agencies are due to implementing tiered rates. The City should prioritize and subsidize users that have an “everyone plays” philosophy and is volunteer-based. “READ TIER LANGUAGES” Most organizations wholly fit into one Tier or the other. AYSOs seem to be an organization that bridges both Tiers, since they have their Core program which fully aligns with Tier1, and then their Matrix program has select teams. A recommendation tonight would agree to the Tier 1 and Tier 2 language and determinations, and then also recommend the field use fee updates as follows: beginning February 1, 2021 charge an $11/player rate for all organizations. Beginning July 1, 2021, implement phase 2 which would charge Tier 1 groups $22/player and Tier 2 groups $50/player. Also would update the Master Fee Schedule language as noted in the attachment, and implement the Field User Priority as noted on the next slide. 5 As you can see, Department and City programs come first, followed by Tier 1 in season sports. Then public schools followed by Tier 2 in season sports. Private schools would then come before any out of season sports. Lastly, all other groups that do not align with any of the previous priorities would be on a first come, first served basis assuming any available space. 6 With the master fee schedule update, we are including the new Friendship Park Deck as well as updating Mountain Hawk Park gazebo #1 naming it th eMountain Hawk Park Events Pavilion to help facilitate more appropriate events for that facility. 7 Walking through the timeline, we’d like to bring our final recommendations to City Council on November 17, implementing the Mountain Hawk Park Events Pavilion and Friendship Park Deck fees on December 1, 2020, along with the updated language in the Master Fee Schedule. Phase 1 of the field fees ($11/player) would be implemented February 1, 2021 and then Phase 2 of the field fees ($22/player for Tier 1, and $50/ player for Tier 2) would be implemented on July 1, 2021 for the new fiscal year. 8 That concludes my presentation and I’ll take any questions or comments. 9