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Home My WebLink About2009/06/02 Item 7 ITEM TITLE: SUBMI~TED BY: REVIEWED BY: CITY COUNCIL AGENDA STATEMENT June 2,2009 Iteml PUBLIC HEARING: CONSIDERATION OF AMENDENTS TO THE MASTER FEE SCHEDULE, CHAPTER XVII, CHULA VISTA NATURE CENTER RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE MASTER FEE SCHEDULE TO CHAt"lGE THE EXISTING FEES AND FEE DESCRIPTIONS ASSOCIATED WITH THE CHULA VISTA NATURE CENTER DIRECTOR OF RECREATION AND NATURE CENTEFJP$ CITY MANAGER. /J!J:r ./ ASSISTANT CITY~~ANAGER "'7 J 4/STHS VOTE: YES D NO ~ SUMMARY Working in concert with the Chula Vista Nature Center Board of Trustees, staff has determined that the current fee structure is insufficient to cover costs and maintain the operation of the Chula Vista Nature Center ("Nature Center"). As one step in Creating a Sustainable Chula Vista Nature Center, staff is recommending amendments to Chapter XVII of the Master Fee Schedule, increasing admission fees at the Nature Center.\ ENVIRONiVIENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION That City Council conduct a public hearing and adopt the Resolution amending the Master Fee Schedule to change the existing fees and fee descriptions. 7-1 JUNE 2, 2009, Item~ Page 2 of3 BOARDS/COMMISSION RECOMMENDA nON The Nature Center Board of Trustees considered the proposed fee Illcreases at their meeting on May 14, 2009, and approved staffs recommendation. BACKGROUND The Mayor's Task Force for Creating a Sustainable Chula Vista Nature Center presented their preliminary report to City Council on April 7, 2009. The report outlined the work of six Task Force Committees, and presented a number of preliminary recommendations. One of those recommendations was an increase in admission fees to the Nature Center. City Council accepted the report, and directed staff to return to Council with staff s recommendations on how the City should proceed. The subsequent staff report supported the Task Force recommendation of a transition of operations and management to a non- profit entity. Staff and representatives from the Friends of the Chula Vista Nature Center ("Friends") have been meeting on a regular basis, discussing the potential transition plan. Potential revenue sources are a key component of the discussions, and there is consensus that admission fees should be increased at this time. DISCUSSION Admission fees to the Chula Vista Nature Center were last increased in July 2006, following the completion of a major renovation of the facility that included a number of enhancements. The preliminary report of the Mayor's Task Force on Creating a Sustainable Chula Vista Nature Center contained recommendations for increases in admission fees. Those recommendations were based on research and surveys completed by a Task Force subcommittee, and included comparisons with admission fees at a number of other attractions in the local market that could conceivably compete for discretionary spending. The Friends fully endorse the suggested increases, and have a vested interest in approval; the Friends are seriously considering taking over operations of the Nature Center in January 2010, and are also evaluating the benefits of providing funding to the City to sustain current progranuning and staffing levels July -December of 2009. The additional revenue potentially generated by the recommended increases is a major factor in their decision to provide interim supplemental funding. The suggested increases were also presented to the Nature Center Board of Trustees. The Board also endorses the recommendations, and believes that admission increases are appropriate at this juncture, especially with the potential of changes in operation and management in the relatively near future. In addition to the changes in admission fees, staff is recommending several relatively minor changes in the admission categories. These changes are briefly summarized below: . A change in the age definition for "Adult" from 18-54 to 18-64 . A change in the age definition for "Senior" from 55+ to 65+ The table below indicates both the current categories and admission fees, as well as ddh ddmi fi recommen e c anges III categones an a SSlon ees. Current Category Current Fee Recommended Category Recommended Fee Senior (55+) $5.00 Senior (65+) $8.00 Adult (18-54) $6.00 Adult (18-64) $11.00 Student (18+ lID) $5.00 Student 18+ wlID) $8.00 Militarv $5.00 Military 20% discount Junior (12-17) $4.00 Junior (12-17) $8.00 Child (4-11) $3.00 Child (4-11) $6.00 7-2 JUNE 2, 2009, Iteml Page 3 of3 I Child (under 4) I Free I Child (under 4) I Free The changes in fees noted above are also reflected on Attachment "A", an excerpt from the City's Master Fee Schedule. Recommended changes are noted with strikeouts immediately followed by new information. Notably absent from these recommendations is any discount for Chula Vista residents. This was a conscious decision, in part to avoid issues at the point of fee collection, but much more importantly to promote and encourage the purchase of annual memberships, which allow individuals or families to return to the Nature Center for unlimited subsequent visits within a 12 month period of time. The likelihood of repeat visits is greater for local individuals and families, and annual memberships include some additional benefits such as Gift Shop discounts. Since increases to membership fees are not being recommended at this time, they will be better bargains if the recommended admission fees are approved. For adults and seniors, annual memberships are advantageous for more than 3 visits to the facility, and family memberships for families with 2 or more children payoff with the second visit to the facility. If the recommended fee increases are approved, it is anticipated that revenue would be enhanced by $200,000 - $225,000 annually. This amount is in addition to the annual revenues of $165,000 projected under the current fee sttucture, for total projected annual revenues of$365,000 - $390,000. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council Members and has found no such holdings within 500' of the properties which are the subject of this action. CURRENT YEAR FISCAL IMPACT The recommended increases would not be affective until July I, 2009, so there is no impact on current year funding. ONGOING FISCAL IMPACT Approval of the proposed fee schedule results in no net impact to the General Fund. The proposed fiscal year 2009-10 budget reflects closure of the Nature Center facility to the public effective July I, with an expenditure budget of $218,000 (minimum facility operation) and no revenue projected. Staff continues to work with the Friends to implement a viable operation model. The proposed fee increase is the first step towards transitioning the Nature Center to non-profit status. The new fee sttucture is anticipated to generate $365,000 - $390,000 under the current operating hours. Staff will continue to work with the Friends to reach an agreement to operate the Nature Center from July to December 2009 at no additional cost to the City, using the revenue from the newly increased fees and donations from the Friends. If such an agreement can not be reached, the Nature Center closure will proceed as scheduled and the new fees will not be put in place. ATTACHMENTS Attachment "A" - Master Fee Schedule Chapter XVII 7-3 Attachment "A" CHAPTER XVII Nature Center A. ADMISSION GROUP ADMISSION FOR: FEE: Adults Adults (18-64) u,oo $11.00 Military Any ~ 20% discount Seniors Seniors - (65+) ~ $8.00 Students Students (18+ with ID) ~ $8.00 Juniors Juniors (12-17) ~ $8.00 Children Children (4-11) ~ $6.00 Free Children Children (under 4) Free [Resolution 2006-178. effective 06/13/2006J B. FACILITY RENTAL EVENT TYPE FEE Conference, meeting $300 Reception (each 100 people) $500 Dinner (indoor seating) $500 Dinner (outdoor seating) $750 Child's Birthdav Party $150 WeddinglReception $1,500 Master Fee Schedule Page 69 Part 11- Development Chapter XVII - Nature Center 7-4 Attachment "A" Proposed Fees CHAPTER xvn Nature Center A. ADMISSION GROUP ADMISSION FOR: FEE: Adults Adults (18-64) $11.00 Military Any 20% discount Seniors Seniors (65+) $8.00 Students Students (18+ with ID) $8.00 Juniors Juniors (12.17) $8.00 Children Children (4.11 ) $6.00 Free Children Children (under 4) Free B. FACILITY RENTAL EVENT TYPE FEE Conference, meeting $300 Reception (each 100 people) $500 Dinner (indoor seating) $500 Dinner (outdoor seating) $750 Child's Birthday Party $150 WeddinglReception $1,500 Master Fee Schedule Page 69 Part II - Development Chapter XVII - Nature Center 7-5 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE MASTER FEE SCHEDULE TO CHANGE EXISTING FEES AJ.'ID FEE DESCRIPTIONS ASSOCIATED WITH THE CHULA VISTA NATURE CENTER WHEREAS, staff, working in concert with the Chula Vista Nature Center Board of Trustees,JIas determined that the current fees associated with the Chula Vista Nature Center ("CVNC") are insufficient to cover costs and maintain the operation of the CVNC; and WHEREAS, existing fees have not been changed since July 2006; and WHEREAS, in light of the foregoing, staff is recommending amendments to Chapter XVII of the Master Fee Schedule, increasing admission fees at the Nature Center; and WHEREAS, staff is recommending several relatively minor amendments in the admission categories; and WHEREAS, the proposed fees and admission categories are identified in Exhibit A, attached; and WHEREAS, the Chula Vista Nature Center Board of Trustees voted to support the fee increase recommendation at their meeting on May 21, 2009; and WHEREAS, the proposed fee increases will make an operational transition of the CVNC from City to non-profit more fmancially feasible for such non-profit; and WHEREAS, The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista amends the Master Fee Schedule to change existing fees and descriptions for admission fees associated with the Chula Vista Nature Center. James D. Sandoval City Manager / f ,..... ..- ....-,....... Presented by 7-6 Adcti +;OYlc0 f.-k rll 7 I rrf" lYlaJu:n"-- +B,- c../z/D4 Donna Norris From: Sent: To: Cc: Subject: Zaneta. Encarnacio n~; ~,~~J[..';r.x(i:-: ~j~IJ,",,-'lt!;l(ll'j'i~~il'>'l:'_l~);.i}). Tuesday, June 02, 2009 2:05 PM Cheryl Cox; John McCann, Steve Castaneda; Rudy Ramirez; Pamela Bensoussan Donna Norris Input for tonight's council meeting Hello Honorable Mayor & Council Members, Fo~ Public Comment: I want to thank each of you for your past and ?rese~t support for the Nature Center. An ad hoc group of the Friends of the Nature Center have been working tirelessly these l~st few months with staff to worK on the terms and conditions of a MOU that will address the transfer of the Cen~er from a public entity to that of an independent ~on- profit and that will follow the Board's submission of the required Letter or Intent. I don't think that I need to layout all the reasons why it is in tne best interest or the city to ensure the long-tern sustainability of the Center because I will probably be preaching to the choir. What may not be as obvious is the need for the city to have a financial commitment to the Center beyond the next 6-months. This will assist the new non- profit in soliciting and applying for funding by cemonst=ating a strong co~~itment and investme0t by the City. I know budget times are the worst we have seen in quite some time, but I urge you to step back from the budgetary crisis and consider the role and contributions a vibrant Nature Center will bring to the city in the future. Public Hearing/Item 7: I am not going to be able to make the council meeting tonight but wanted to be sure that my support for the pro?osed Nature Center rate increase, as proposed, was on record. This increase is only one step, yet an important one, to the long term sustainability of t~e Cer:ter. I appreciate the ability to submit my input by email.asit is difficult to make the 4prn council meeting due to work. Respectfully, Zaneta (""')(""') ~ ~~ -<-< :u (""')0 ~ fT1 r-""n 0 m(""') :::Ox I rn :><:c N - <Ar- < oJ:> -0 f1l :!'< N CJ -':"':(.0 0~ - r"1:-.. -..J 1 ,1.: I A del .-\..i 0", \ t'\.=h> Y r"no...T1 ClY) -toy- \ -k-vn 7 ~('; ..' n .. rv7~+-.,.~If,,( ;8~, v'i...e6.e/WU~'," / iW<A.-v~" June 1,2009 CHULA \'J.STA NATURE ,CENTER , .. . ..... , " " JimSilridovaJ, City Manager' ,..city .of ChulaVista "270:Fofu-ili.:Av~iiue " ClnilaVista, CA919 I 0 .. , '. ,.... - . .~. . -. ." ~. - ~ C'.: .A '-.:' _'~" 'I....' , .. RE:ClilllaVista.Nature'Center Letteroflntent :..;n:..,.', . .~;: , ,Dear Mi:Sandoval: .';... '....; . '- . :As. YOll how, 611 'April 28, 2009theCity Council approved a Resolution directing staff to ..pLtrsueap.1an fodong:term sustainability oftheChulaViSta Nature Center ("Nature 'ceriier")..,::'-Per staffs recommendation;,the plan focused on negotiations with the Friends " Dftlle CbulaVistaNature Center, a private non profit ("Friends"), and the transfer of Nature Center,operations frcimthe City to the Friends by January I, 2010, ", , As part of its Resolution, the City COllllcil required that by no later th,an June 1,2009 the Friends:issue a,,"Letterof Intent" committing to these negotiations, along 'Ivith a "partial :fuhdiiig~"ofNature CenteT6perationdor the "transitional period" of July I 'through Decirmber31,2009 (the "Transition Period"). , , By this letter,' the Friends herebr.commit to negotiating with the City-in good , .. faith~reason,able terms:and tonditions for the transfer ofNatnre Center operations JromtheCity to the Frien'ds. Such terms and conditions shalIincJnde--at a ' minimuin~a:$75,000 contribution by the Friends towards Natnre Center 'op'eratioils during the "Transition P~riod." (Note: iUs expected that the Friends Iniiiiniu,in contribution is iikelY,to be greater than the $75,000 minimum and that , Jlaymentswill be madeinthe f(Jrm of monthly, adjustable installments as pro,-ided , ,,' '.below.)', : ' , , : '.'::.The.starting negotiation parameters for,Nature Center operational transfer and ., .. sustainabiIityWill be the teimsoutlined by City staff in their agenda report presented at ,.;t~~ApriI28th CityCbunciJ meeting. The Friimds also request the following negotiation ; parain eters: . .' . . . .. . I. The parties will meet and confer todeveiop a biIsiness plan that identifies , ': ,sources for new revenues aildcost cutting measures to be implemented over the six- , , month Transition Period With the, goal of operating the Nature Center over the Transition Period to as close to full capacity as possible. 2. Based upon the approved business plan, the parties will meet and confer to discuss the appropriate amounts of their respective "guaranteed minimum" and Frit'lIds ofthc Chul;! Vistu N:lltllrc C{'Jltt'r Kell "\\-eim~r (Cfwirl. ::.:up::r....i~ur Gre!: ('{IX. ZllneUl Encarna.cion' Dr. Brian Joseph. \Ieph<lllie King!:.wrl' . }':ll \..11U1J~a . Christin\" Mllk~I~C . Buck rvlanin -jPr~5idt:nll . NUlushu Mnrtine-L (Vice Chain. Mariaune M;:j;.'eI~ lS/:',;!ctoi'Y) . :-;I~T:' c..1j-e.:;~n . F!":mk!\ ]'('I\vdl. ~r . rr<lllh: Rnseman . M3ri(1 :;aizrnann' D.-maid Smith tTrea>;.un::rl' Lm:i:'l Vign:':lpialln. Dr. LiltT). \\'eq:!t:\and..Ir 000 Gunvowder Point Dri"iJe, ctmln Vista, CA 91910-1201 . (679) 409-5900 . Fr.x (619) 409-59]0 . w,~'w.ChulaVj.s!aN.atu:::~C.en.,t.:r...~:.g W~7.W~~~~~~{~if~~~~~1r~~S~2;~~gR~~r~~%~~j~~-~J~~~72~~~%~r:&~~:f?~8"&;}~~~~~~gill:~~ili~;t~;J~~;~~~~ ., "contingent" financial contributions (if any, based upon actual Nature Center performance) on a month to month basis over the six-month Transition Period. 3. . Negotiations wiIJ include an agreement for the City's and Friends' financial obligations to Nature Center operations for, at a minimum, the first 5 years of Nature Center operations by the Friends. 4. These terms, and the many other terms and conditions remaining to be negotiated, \vill be memorialized in a formal Memorandum of Understanding presented to our respective governing bodies for their consideration and approval prior to July 1, 2009. Please acImowledge your acceptance and agreement with the terms ofthis Letter ofIntent by signing where indicated below. )6~v Ken Weimer President, Friends ofChuJa Vista Nature Center ACKNO\VLEDGED AND AGREED: Jim Sandoval, City Manager