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DATE: February 17, 2026
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Derek Schweigart, Parks and Recreation Director
Tiffany Oren, Recreation Manager
DEPARTMENT: Parks and Recreation
SUBJECT: APPROVING THE FOSTER CITY COMMUNITY CENTER
BUSINESS OPERATIONS PLAN FRAMEWORK
RECOMMENDATION
It is recommended that the City Council adopt a resolution approving the Foster City Community Center Business Operations Plan as a guiding operational and financial framework to inform the opening and ongoing operations of the new Community Center.
EXECUTIVE SUMMARY
The Foster City Community Center (FCCC) represents a $65.9 million capital investment in a new, modern civic facility designed to serve the community for decades to come. The proposed Business Operations Plan (Plan) establishes a comprehensive and disciplined operational framework to ensure that this investment is managed responsibly once the facility opens.
The former Community Center (previously known as the William E. Walker Recreation Center) operated under informal practices suited to a smaller, less complex building. On October 21, 2024, City Council adopted City Resolution No. 2024-111 to rename the Recreation Center to FCCC. The new facility is significantly larger, supports multiple concurrent uses, includes premium event space, and carries higher operating costs and community expectations. For these reasons, past operating practices are no longer suitable. The proposed Plan provides a clear and practical framework for how the new
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Community Center will be operated, staffed, and fiscally managed. Approval of the Plan provides clear direction, accountability, and financial expectations to guide Community Center operations as the facility opens and stabilizes.
A key component of the Plan explores opportunities to partner with private operators for select program areas, including the Early Education Program, Ceramics Studio, and Community Center Café. Draft Requests for Information (RFIs) for these program areas are included with this report for City Council reference. Upon approval of the Plan, the City Manager will authorize staff to issue the RFIs as an administrative action to gather market information regarding potential operator interest, service delivery models, and financial considerations, while maintaining City priorities related to safety, access, and fiscal responsibility. Any proposed agreements or pricing actions resulting from this process would return to the City Council for review and approval prior to execution.
BACKGROUND/ANALYSIS
The new Community Center replaces the aging William E. Walker Recreation Center, whose operational limitations and outdated design no longer support community needs, accessibility standards, or growing program demand—restricting programming, event capacity, service delivery and community uses.
The new two-story, approximately 38,000+ square-foot Community Center significantly expands opportunities for community use, including:
Increased program and class capacity
Expanded fitness and wellness offerings
Enhanced arts and ceramics instruction
Early Education services
Community events and facility rentals
Two commercial kitchens
A community café that supports daily use and event activity This expansion introduces a fundamentally different operating environment, including higher customer volumes, multiple concurrent activities, increased staffing coordination, and greater financial exposure. These conditions require a deliberate operating and financial model, rather than an extension of past practices.
Purpose and Role of the Business Operations Plan
The Plan establishes the operational, staffing, and financial framework necessary to responsibly manage a modern, high-use civic facility. It defines how the new Community Center will function on a daily basis, how resources will be allocated, and what level of ongoing General Fund support is anticipated and considered appropriate. 1 0
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The Plan recognizes that the Community Center is a public service facility with enterprise components—not a profit center. It balances broad community access with fiscal discipline, operational control, and long-term sustainability.
The Plan is intended to function as a guiding framework rather than a static or prescriptive document. As operations begin and demand patterns become clearer, the Plan may be refined over time. Approval of the Plan does not authorize specific vendor agreements, pricing actions, or operational changes that would otherwise require separate City Council approval.
Intended Role of the Community Center
Under the Plan, the Community Center is designed to function as a:
1. Community Anchor
A welcoming civic facility that supports wellness, learning, arts, culture, and community connection across generations.
2. Program and Service Hub
The Center will serve as the City’s primary indoor venue for recreation programs, fitness classes, arts instruction, active aging services, youth enrichment, and community education.
3. Disciplined Municipal Operation
A City-managed facility that leverages rentals, events, and partnerships to offset operating costs while maintaining public control, equity, and accountability.
Operational success will be evaluated based on service quality, safe and effective facility management, strong community use during approved hours, and financial performance aligned with City policy, rather than on profit maximization.
Community Expectations
Through City Council direction, community engagement, and needs assessments, the following expectations have been established:
High-quality facilities and services
Expanded access to fitness, arts, and cultural programming Safe, professionally managed spaces
Responsible stewardship of City assets
Fiscal discipline in ongoing operations
While the Community Center is not expected to be fully self-supporting, it is expected to operate with greater financial discipline than the former facility. The proposed Plan directly responds to these expectations.
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Operating Model Overview
Operating Hours
The Community Center is designed to be open during set public hours that reflect community demand and allow the facility to operate efficiently. The proposed operating hours are outlined below.
Monday–Thursday: 8:00 a.m. – 8:00 p.m.
Friday–Saturday: 8:00 a.m. – 5:00 p.m.
Sunday: Closed to the public, except for approved rentals Total Weekly Hours: 66
This schedule balances community demand with staffing sustainability and responsible cost control.
Controlled Access Model
The facility will operate under a controlled access “library model,” where:
Public commons remain open during operating hours
Program, studio, and event spaces are locked and secured unless scheduled All scheduling and access are centrally managed by City staff A Manager-on-Duty is present during all public operating hours This approach allows the facility to be well-used while maintaining safety, protecting City assets, and managing resources responsibly.
Financial Framework
The Community Center is a public service facility with enterprise components. Key financial characteristics include:
Rentals, events, and partnerships as primary revenue sources The Lagoon Event Hall as the primary cost-recovery driver City-delivered programs prioritizing access over full cost recovery As operations progress, the Community Center is expected to operate within a cost- recovery range consistent with comparable public facilities, with remaining costs supported by the General Fund. This outcome is intentional and aligned with Foster City’s demographics and City Council policy direction.
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FORMER FOSTER CITY
RECREATION CENTER
FISCAL YEAR 2023-24
FINANCIAL PERFORMANCE
NEW FOSTER CITY
COMMUNITY CENTER
FISCAL YEAR 2027-28
PROJECTED FINANCIAL PERFORMANCE
DELTA EXPLANATION
REVENUE SUMMARY
Programs $177,584 $162,232 ($15,352) Former Rec Center = $97K city-run ceramics class $ After School Program - Cont $215,000 $215,000 $0 Net neutral General Facility Rentals $73,705 $212,850 $139,145 Revenue increase by 189% Lagoon Room Rentals $139,136 $1,218,000 $1,078,864 Revenue increase by 775% Sponsorships $10,000 $25,000 $15,000 Revenue increase of 150% Private Public Partnerships $23,933 $282,500 $258,567 Revenue increase of 1,080% TOTAL REVENUES $639,358 $2,115,582 $1,476,224 Overall revenue increase of 231%
EXPENDITURE SUMMARY
Personnel Services $1,025,329 $1,454,013 $428,684 Expense increase of 42% Supplies $396,950 $406,755 $9,805 Expense increase of 2% Services and Charges $1,542,317 $1,642,317 $100,000 Expense increase of 6% Lagoon Event Hall Pass $0 Through Charges
TOTAL EXPENSES $2,964,596
$204,000
$3,707,085
$204,000
$742,489
Cost did not exist in Former FCCC Budget
Overall expenditure increase of 25%
NET ANNUAL ($2,325,238) REVENUE/(LOSS) ($1,591,503) $733,735 General fund subsidy reduction of 32% Annual Cost Recovery 22% 57% 36% Increase of 36%
Staffing Adequacy and Recommendations
A review of current staffing shows that the Community Center’s allocation of approximately 9.7 full-time equivalent (FTE) which is made up of both full-time and part- time positions is generally sufficient to support regular programs and routine facility operations. However, the Lagoon Event Hall is considered as a distinct operating enterprise with revenue, service, and brand expectations comparable to a hospitality venue. Under the current staffing model, these demands cannot be fully met.
To fully support the Lagoon Event Hall’s role as a business within the business, this Plan recommends the creation of a new full-time position titled “Rental Coordinator” dedicated to overseeing FCCC rentals, with primary responsibility for the Lagoon Event Hall. This role provides focused leadership for all rental-based activities, including the Lagoon Event Hall and supporting rental spaces, and mitigates the operational risk created by splitting high-touch event responsibilities across multiple generalist positions. 1 0
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Rental Coordinator Core responsibilities include:
Event Hall sales, booking, pricing, and calendar management Client relationship management from initial inquiry through close-out Oversight of event logistics, policies, workflows, and branding Coordination with approved caterers and external vendors On-site or on-call presence for high-profile events
Collaboration with custodial and setup crews to ensure hospitality-level standards
Justification:
Aligns staffing with the adopted assumption that the Event Hall operates as a dedicated enterprise
Supports hospitality-level service expectations and premium market positioning Protects revenue generation, customer satisfaction, and the City’s brand Prevents high-touch rental and event responsibilities from being spread across multiple general Recreation staff positions
The new Community Center is larger and more complex than the former facility, and the Plan reflects that by addressing key areas such as staffing, access, rentals, and partnerships in greater detail. City Council action is focused on approving the overall framework and direction, not individual operational decisions.
As part of implementation of the Plan, draft Requests for Information (RFIs) for the Ceramics Program, Early Education Program, and Community Center Café are included with this report for City Council reference. Upon approval of the Business Operations Plan framework, the City Manager shall approve and direct staff to issue the RFIs. The RFIs are non-binding and intended solely to determine interest and market for the particular operations; any future agreements or operational changes would be returned to the City Council for review and approval.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
In July 2023, the City of Foster City, in accordance with the requirements of the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines adopted by the Secretary of Resources, and the City of Foster City Environmental Review Guidelines, prepared an Initial Study and Mitigated Negative Declaration (SCH # 20231009) with Standards Conditions and Mitigation Monitoring and Reporting Program (SCAMMRP), and CEQA Findings (IS/MND) for the Recreation Center Rebuild Project. Pursuant to Public Resources Code section 21166 and CEQA Guidelines section 15164(b), the City Council adopted an Addendum to the adopted Mitigated Negative Declaration on November 16, 2023.
No further review under CEQA is necessary as the Plan is consistent with the project considered under the IS/MND and the Addendum. No substantial changes are proposed in the project which will require revisions of the previous MND, nor substantial changes 1 0
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to the circumstances under which the project is being undertaken which will require major revisions to the MND, nor is there any new information of substantial importance, which was not known at the time the MND was approved pursuant to CEQA Guidelines section 15162.
FISCAL IMPACT
There is no immediate fiscal impact associated with approval of the Business Operations Plan. Any future fiscal impacts related to implementation of the Plan, including staffing or contractual actions, would be brought forward to the City Council as separate agenda items with recommended actions.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence
ATTACHMENTS:
Attachment 1 – Resolution
Attachment 2 – Foster City Park and Recreation Community Center Business Operations Plan
Attachment 3 – Request for Information: Ceramics Program Attachment 4 – Request for Information: Early Education Program Attachment 5 – Request for Information: Community Center Café