RESOLUTION NO. 22-9082
A RESOLUTION OF THE CITY OF SANTA CLARA,
CALIFORNIAADOPTING A PARKS &RECREATION COST
RECOVERY POLICY
BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
W HEREAS, the City Council of the City of Santa Clara periodically adopts Budget Principles intended to provide a general framework and approach for developing the City's budget, ensuring fiscal stability by considering both the short and long-term impacts of any funding decisions;
W HEREAS, a previously adopted Budget Principle addressed establishment of fees and stated,"With limited exceptions, establish fees based on full cost recovery where individuals/businesses rather than the community at-large are benefitting from City services.
This preserves limited unrestricted resources for providing services that benefit the community as a whole.";
W HEREAS, the City desires to establish a Parks &Recreation Cost Recovery Policy to address some of the limited exceptions to establishing fees based on full cost recovery; W HEREAS, the Parks &Recreation Cost Recovery Policy is intended to establish general guidelines and cost recovery targets for Parks and Recreation programs and services;
W HEREAS, programs with the highest level of community benefit will have the lowest level of cost recovery;
W HEREAS, programs that have the greatest level of individual or group benefit have the highest level of cost recovery;
W HEREAS, pricing of programs and services takes into account market rates and the impact on demand which may override cost-recovery target considerations; W HEREAS, non-resident fees are priced higher than resident fees; //
Resolution/Parks &Recreation Cost Recovery Policy Page 1 of 2 Rev: 11 /22/17
WHEREAS, fees will be periodically reviewed to keep pace with changes in the cost of living, market demands, and/or to promote identified Parks &Recreation Programs; W HEREAS, Staff will adjust fees to meet minimum cost-recovery rates and to be consistent with market demand for services; and,
W HEREAS, the City will continue to offer a grant program to offset the cost of programs for eligible low-income participants identified through its established procedures.
NOW THEREFORE, BE IT FURTHER RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
1. That the City Council hereby finds that the above Recitals are true and correct and by this reference makes them a part hereof.
2. The Parks &Recreation Cost Recovery Policy attached as Exhibit A is hereby adopted.
3. Effective date. The Parks &Recreation Cost Recovery Policy shall be effective upon adoption.
HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED
AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A REGULAR MEETING THEREOF HELD ON THE 19T" DAY OF APRIL, 2022, BY THE FOLLOWING VOTE:
AYES: COUNCILORS: Becker, Chahal, Hardy, Jain, and Park, and Mayor Gillmor
NOES: COUNCILORS: None
ABSENT: COUNCILORS: Watanabe
ABSTAINED: COUNCILORS: None
ATTEST:
NORA P ENTEL, M C
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
Attachments incorporated by reference:
1. Parks &Recreation Cost Recovery Policy
Resolution/Parks &Recreation Cost Recovery Policy Page 2 of 2 Rev: 11 /22/17
Exhibit A
PARKS AND RECREATION COST RECOVERY POLICY
Purpose
Establishing a cost recovery policy provides the City's Parks and Recreation Department with a tool for evaluating services and establishing appropriate fees for services. Standardizing cost recovery objectives enhances the Department's ability to accomplish broad citywide goals and objectives. Establishing a reasonable, transparent, and consistently applied policy is intended to:
~ Stretch taxpayer investment in parks and recreation services to optimize value received ~ Promote program respect and ownership
~ Allow prices to reflect users' investment in themselves based on individual benefit ~ Develop deeper commitment to the programming users help support Costs Considered When Evaluating Cost Recovery
To evaluate cost recovery, the Department will calculate the "full cost of service," for programming, facility use, and services provided. The full cost of service will include components for:
~ The direct costs of service:
— The labor associated with the performance of service from all personnel involved in the activity — The services, supplies, and/or materials required to complete the activity ~ A reasonable share of the indirect costs of service:
— The services, supplies, and materials which support the personnel involved in the activity — The maintenance of any facilities required to support the provision of service — The indirect management, administration, and support services associated with the City functions involved in the activity
— The central services, City management and administration, and governmental oversight associated with the functions involved in the activity
Targeted Cost Recovery in Fees
Once the full cost of service is established for each activity, the City will apply a consistent set of guidelines for determining the amount of cost to be recovered in the final fee amount. A cost recovery percentage will be applied to the full cost of service to calculate the fee. Figure 1 describes the general criteria for assigning Departmental programming, facility use, and services to cost recovery tiers. The cost recovery threshold assigned to each fee-related service and program area will be identified in the periodic analysis and documentation supporting the ongoing and seasonally managed calculation of the City's Parl<s and Recreation fees.
PARKS AND RECREATION COST RECOVERY POLICY
FIGURE 1 ~ COST RECOVERY GUIDELINES —PARKS AND RECREATION SERVICES 0%COST RECOVERY Programs, facilities, and services that benefit the General, non-exclusive park, Entirely Community community as a whole. The community generally playground, open space, trails, Benefit expects the City to offer these services and restrooms, and facility supports paying for these through taxes. visitation and use 1-20% COST Programs, facilities, and services that provide Non-Profit facility use serving RECOVERY benefit to the individual user, but have more the City of Santa Clara Mostly Community fundamental goal of: Special Events
Benefit • Seeking to engage community with high . Resident Senior Center Use participation levels desirable Senior Nutrition Program • Community problem solving (e.g., services Afterschool Program for vulnerable or underserved populations)
21-40% COST Programs, facilities, and services which promote Early Learners RECOVERY individual physical and mental well-being, and Therapeutic Recreation Considerable provide recreation skill development. They may Community Benefit have a community benefit but to a smaller group of the community. Generally, costs of service are
offset by both a tax subsidy to account for
community benefit and participant fees to
accountfor individual benefit.
41-70%COST Programs, facilities, and services which promote Competition, Meets, and RECOVERY individual physical and mental well-being, and Tournaments that include Balanced Individual provide recreation skill development. Program, competitors from other cities and Community facility, and service use that benefits individuals Drop-in Benefit primarily, but the community receives some Fitness/Recreation/Swimming benefit. • Youth Theater Programs
• Services which are specialized and/or similar Resident facility use to private sector
City provided programs
•
Comparable "market rates" for similar
services affect ability to recover a greater
percentage of costs
71-90%COST Benefits individuals significantly more than the Programs providing individual RECOVERY community; Private sector or public agencies benefit Considerable offer similar services; Demand for service, facility Individual Benefit or program exceeds capacity
91-100%COST Benefit individuals; Commercial nature of Non-resident &Commercial RECOVERY services; Enterprise funds expected to operate use of facilities Exclusively without General Fund support
Individual Benefit
PARKS AND RECREATION COST RECOVERY POLICY
The following shall serve as guidelines for categorizing Recreation Programs and services based on types of programs, target populations, and level of community benefit to determine appropriate subsidy Level:
Programs with the highest level of community benefit will have the lowest level of cost recovery. ~ Programs that have the greatest level of individual or group benefit will target the highest level of cost recovery.
~ Pricing of programs and services takes into account market rates and the impact on demand which may override cost-recovery target considerations.
~ Non-resident fees are priced higher than resident fees. ~ Fees will be periodically reviewed to keep pace with changes in the cost of living, market demands, and/or to promote identified Recreation Programs.
v Staff will adjust fees to meet minimum cost-recovery rates and to be consistent with market demand for services.
The City will continue to offer a grant program to offset the cost of programs for eligible low-income participants identified through its established procedures Staff will seek to enhance and refine this policy over time.
PROGRAM COST RECOVERY
BENEFICIARY TARGETED
Parks and Recreation Fee Management
Most fees for Parks and Recreation services and programs will fluctuate seasonally as the Department manages offerings and provisions of service dynamically in line with capabilities and market conditions at the time schedules are developed. As such, establishing static fees within the Municipal Fee Schedule similar to most other City services is burdensome procedurally. The Cost Recovery Policy is intended to establish general targets for the Department within which it can set most fees on that fluctuating basis within its periodic service catalogs.
100%+indicates minor exceptions where premiums above cost may be justified, such as market-based rents.