Business Item 5d
STAFF REPORT
City Council Business Item
DATE: October 20, 2025
TO: Honorable Mayor and Council Members
FROM: Kaylyn Stainbrook, Parks & Recreation Director
THROUGH: Amy Nilsen, City Manager
SUBJECT: Public Hearing for River Lodge and Monday Club Fees STAFF RECOMMENDATION:
Review and adopt the amended Rates and Fees for Fiscal Year (FY) 2025-26 for River Lodge and Monday Club, Resolution 2025-25
EXECUTIVE SUMMARY:
The purpose of this Public Hearing is to adopt amended fees for FY 2025-26 for the River Lodge and Monday Club.
On September 2, the City Council received a staff report and presentation regarding the River Lodge Analysis as part of the Revenue Generation Ad Hoc Committee’s efforts to generate revenue for the City. The analysis determined that River Lodge operation creates a deficit of approximately $275,000 per year – largely due to River Lodge staff wages/benefits, Park Maintenance staff wages/benefits, building repairs, and utility/insurance/general inflation. The General Fund has been used to cover the deficit since the building was constructed in 1998, meaning the General Fund (public monies) have been subsidizing the operation of a venue used for private events. On September 2, City Council directed staff to return with an enhanced investment plan for the River Lodge, including physical upgrades and marketing.
Staff have met several times since September 2 and are now proposing Fee Schedule changes, pursuing necessary enhancements, and implementing operational changes including marketing.
Proposed Fee Schedule Change Highlights (Full Fee Schedule attached with some local venue comparisons):
Increase Rental Fees (Full Day Rates increased by average of 18%, Half Day Rates increased by average of 50%)
Increase Standard Cleaning/Security Deposits
Add Table/Chair Set-Up Fee
Add Alcohol Fee
Add Reschedule (Processing) Fee
Add Dishware Use Fee
Increase Audio/Visual Daily Fee
Replace “Entire Facility” Rental with “Chinook + Steelhead + Coho” Business Item 5d
Maintenance/Amenity Enhancements:
Exterior Staining Project – approved by Council on September 2, 2025 Upgrade Audio/Visual System – request to Council on October 20, 2025 Operational Changes Currently in Progress:
Reduce staff involvement with preparations, coordination, and clean-up Enforce cleaning deposit refund requirements (groups held to cleaning expectations) Adhere to 12-hour rental or additional charges apply
Events end no later than 11pm
Work to increase additional events
Consider transitioning from fixed office hours to a more event-driven staffing model Marketing:
o Seeking quotes from marketing professionals
o Increasing social media presence
o Updating brochure
o Updating venue search websites
o Collaborating with Fortuna Chamber’s outreach
o Increasing networking
The River Lodge’s current annual deficit is approximately $275,000. With the above changes and approved Revised Fee Schedule, it is projected that River Lodge will increase its revenue by approximately $75,000 resulting in a reduced annual deficit of $200,000.
The largest percentage of operational costs is employee wages and benefits, followed by the cost of utilities, insurance, and general inflation. Staff may present additional solutions to City Council as they are identified.
Separately, an administrative oversight was discovered in the current Fiscal Year 2025-2026 Fee Schedule regarding the Monday Club. It is included in this report, as the Monday Club and River Lodge both fall under Fund 160 of the Fee Schedule. The Parks and Recreation Department’s rentals all have a “Cancellation Fee” (Cancellations processed 30 or more days prior to rental date)” of $50; however, in error, this was not changed for the Monday Club (also managed by Parks & Recreation). Staff has included this change in the attached Proposed River Lodge and Monday Club Fee Schedule.
FISCAL IMPACT:
The River Lodge’s current annual deficit is approximately $275,000. With the amended fee changes it is projected that River Lodge will increase its revenue by approximately $75,000 resulting in a reduced annual deficit of $200,000.
RECOMMENDED COUNCIL ACTION:
1) Receive staff presentation and review Council questions with staff; 2) Open Public Hearing
3) Close Public Hearing; and
4) Motion to adopt Resolution 2025-25; and read by title only. Roll Call Vote.
Business Item 5d
ATTACHMENTS:
• Amended FY 2025-26 River Lodge and Monday Club Fee Schedule • Local Venue Comparisons
• Resolution 2025-25; Resolution Of The City Of Fortuna Establishing A Schedule Of Fees And Charges For Administrative, Building, Community Development, Parks & Recreation, Police, River Lodge, Transit, and Water & Wastewater Within The City Of Fortuna For Fiscal Year 2025-2026