City Council
Report
City Council Meeting: August 24, 2022
Agenda Item: 11.B
1 of 15
To: Mayor and City Council
From: Andy Agle, Director, Community Services Department, Community Recreation
Subject: Adoption of Resolution for Commercial Fitness Trainer Fees Recommended Action
Staff recommends that the City Council:
1. Adopt a resolution to revise the schedule of fees for Commercial Fitness or Athletic Instruction, Classes, or Camps to eliminate quarterly use charges at General City Parks and at the Santa Monica Beach (Tier 1 Fees) and reduce quarterly use charges for Commercial Fitness or Athletic Instruction, Classes or Camps at Palisades Park and Beach Parks (Tier 2 Fees).
2. Approve modifying Commercial Fitness or Athletic Instruction, Camps, or Classes at Palisades Park to include Barnard Way Linear Park, Ocean View Park, Beach Park #1, South Beach Park, Crescent Bay and Beach Green and renamed to “Palisades Park and Beach Parks”.
3. Approve continued use of small and medium group sizes at Barnard Way Linear Park and Memorial Park for Commercial Fitness Trainers or Athletic Instruction, Classes, or Camps.
4. Remove Ken Genser Square and Airport Park Interim Open Space from the approved general park list for Commercial Fitness Trainers or Athletic Instruction, Classes, or Camps.
5. Approve a cap of 75 permits per calendar year for General City Parks and at the Santa Monica Beach.
Summary
The Commercial Fitness or Athletic Instruction, Classes or Camps permit program currently operates at designated City parks and at Santa Monica State Beach. Prior to the program, community members and City class and camp instructors regularly complained about the proliferation of unregulated fitness training and camps in City parks and at the beach. On January 1, 2014, the Commercial Fitness Trainer Permit 2 of 15
program pilot launched in response to the proliferation of for-profit training classes in Palisades Park and concerns that training erodes amenities and infrastructure and prevents the public from enjoying the park and the beach as groups dominate use areas, benches, paths, and other amenities. Additionally, unregulated training was creating loud noises early in the morning and creating the possibility of risk due to businesses operating without insurance. Staff viewed the permit program as an opportunity to preserve and activate parks, mitigate risks, support the local economy, enhance community wellbeing and health, and diversify training locations. Open spaces were tiered into two groups - General Parks and Beaches (Tier 1) and Palisades Park (Tier 2). Higher fees, group size limits, and trainer restrictions for Palisades Park were created considering the site’s Landmarked status, historical structures, heavy use, geography, and proximity to residents.
On June 23, 2020, the City Council adopted the Santa Monica Outdoors Pilot Program, which included waived or reduced quarterly use-charges for businesses with Commercial Fitness Trainer Permits as an economic recovery measure. This fee waiver and reduction was extended several times and is currently set to expire on September 30, 2022. The pilot program has been successful and has contributed to a significant increase in the number of permitted trainers using park and beach space for fitness instruction. Staff anticipates that a return to the full pre-pandemic fees will price out and discourage many of the permitted instructors from continuing to obtain necessary permits. The increased number of permittees in the parks and beach supports the overall program goals of safely activating parks, providing the community safe options for training, while monitoring the number and location of trainers.
Staff recommends moving beach parks (Barnard Way Linear Park, Ocean View Park, Beach Park #1, Crescent Bay, South Beach, and Beach Green) to a new “Palisades Park and Beach Parks” fee structure, continuing to waive the quarterly use charges for General Park and Beach use, and reducing quarterly use charges for trainers using Palisades Park and Beach Parks. Staff anticipates that the continued fee reduction will help retain most of the trainers gained during the pilot program. 3 of 15
Additionally, staff recommends removing Airport Park Interim Space and Ken Genser Square as approved training locations and allow the continued use of small and medium group sizes at Memorial Park and Barnard Way Linear Parks. Finally, staff recommends that the number of permits issued in a calendar year for General City Parks and at the Santa Monica Beach be capped at 75.
Background
In 2014 the Commercial Fitness or Athletic Instruction, Classes, or Camps at City Parks program was created in response to community concerns largely focused on Palisades Park, specifically about the proliferation of unregulated fitness training and boot camps in City parks and at the beach. The program requires that trainers pay for and hold a permit, follow rules, and pay a quarterly use charge pro-rated by quarter.
To obtain a permit, a trainer must apply and provide proof of general liability insurance, additional insured, and a Santa Monica business license. All permitted trainers must sign the permit, acknowledging they have read, understand, and will abide by the rules.
Once documentation is received, an annual permit is issued. The annual permit fee ranges from $125.54 to $188.32 per calendar year. If there are multiple applications for Palisades Park, a lottery is held. Additionally, before an annual permit holder can begin conducting business in parks or beaches, the permittee must agree to pay a quarterly use-charge for any quarter in which they elected to use City parks or beaches. Quarterly use-charges are categorized by location and by groups size as shown below (see Table1).
Table 1: Pre-Pandemic Fees
Tier 1 - General Parks & Beach
Permit Group Size Quarterly Use Charge
Small
(not more than 2 participants) $450 per quarter
Medium
(not more than 10 participants) $900 per quarter
4 of 15
Large
(more than 10 participants) $1,350 per quarter
Tier 2 - Palisades Park
Permit Group Size Quarterly Use Charge
Small
(not more than 2 participants) $675 per quarter
Medium
(not more than 10 participants) $1,350 per quarter
Large
(more than 10 participants) $2,025 per quarter
Also, each permittee must submit a Quarterly Use Report showing location(s) and hours of instruction in the previous quarter. Unique to Palisades Park, large groups are capped at 15 participants and a maximum of 15 permits are issued for medium and large groups. Lastly, to balance park uses, medium and large groups may only operate inside of the four designated zones within Palisades Park (see Table2).
Table 2: Palisades Park Training Zones
Zone Location
#1 Palisades Avenue north to Alta
#2 Montana Avenue north to Palisades Avenue
#3 Immediately north of Idaho Avenue
#4 Wilshire Boulevard north to the public restroom
In August 2017, quarterly use charges for permittees were eliminated for trainers who committed to use Reed Park exclusively, though such trainers would continue to pay the annual permit fee to use Reed Park. It was hoped that the changes would help increase activity in Reed Park and enhance the sense of safety. The changes were aligned with renovation of Reed Park amenities in 2016, which was followed by an activation strategy of recreational, cultural, and enrichment events, programming, and activities for youth, families, adults, and seniors. Unfortunately, despite outreach to commercial fitness instructors, only three trainers have used Reed Park since the program was created.
5 of 15
Allowing trainers to conduct business in parks and beaches required staff to identify locations where training would have minimal impact on community experience.
Additionally, some locations only allow for small- and medium-sized groups to help avoid parks becoming overcrowded. Below is the list of approved parks for Commercial Fitness Trainer use (see Table 3):
Table 3: Approved Commercial Fitness Trainer Sites
Airport Park Memorial Park
Airport Park Interim Space Ocean View Park
Beach Green Palisades Park*
Beach Park #1 Reed Park
Clover Park South Beach Park
Douglas Park
Gandara Park Tongva Park
Hotchkiss Park Virginia Avenue Park
Ken Genser Square Barnard Way Linear Park
Marine Park Crescent Bay Park
* Palisades Park permit allows a trainer to use Palisades Park, General Parks, and the Beach.
As a response to the COVID-19 pandemic, the City established a temporary, outdooruse-permit program, the Santa Monica Outdoors Program, which allowed businesses to use public and private outdoor spaces for dining, physical fitness, and other business uses and included waived or reduced quarterly use-charges for businesses with Fitness Trainer Permits. As a result of the new fee structure, an annual permittee who offers training in General Parks and the Beach locations is only required to pay the annual permit fee and submit quarterly use reports to receive a new quarterly permit. Those training at Palisades Park are required to pay the annual permit fee and a reduced quarterly use fee along with submitting quarterly use reports to receive a new quarterly permit. Below is the pilot program fee structure (see Table4):
Table 4: Quarterly Use Charges Under the Santa Monica Outdoor Pilot Program Tier Locations Size Annual Permit Fee Quarterly Use Charge #1
General
Parks/Beaches Large $125.54 $0.00
#1
General
Parks/Beaches Medium $125.54 $0.00
#1 General Small $125.54 $0.00
6 of 15
Parks/Beaches
#2 Palisades Park Large $125.54 $1,350.00
#2 Palisades Park Medium $125.54 $900.00
#2 Palisades Park Small $125.54 $450.00
Additionally, through the Santa Monica Outdoors Pilot program, allowable group sizes at Barnard Way Linear Park, Tongva Park, and Memorial Park were increased. Ken Genser Square and Airport Park Interim Space were added to the list of General Parks and Beach.
Discussion
In 2019, 11 trainers were issued annual permits. In 2021, 43 trainers were issued annual permits (see Table5: Total number of annual permits sold), reflecting a nearly 300 percent increase in permits issued. Growth was likely due to closure of indoor facilities and the waived or reduced quarterly use charges. Outdoor fitness classes in City parks and beaches have maximized fitness studios and instructors’ ability to provide safe recreational training or wellness offerings. The additional trainers have activated parks, supported local economic recovery and community health and wellbeing, and provided safe training opportunities. As indoor facilities re-opened, trainers continued to obtain permits to work in City parks and beaches. Due to the continued higher number of trainers obtaining permits through the Pilot Program, staff believes the higher pre-Covid permit fees could have been the barrier to entry for many trainers.
Table 5: Total Number of Annual Permits Sold
All Group Sizes 2015 2016 2017 2018 2019 2020 2021
General 20 14 11 11 7 18 39
Palisades Park 13 8 5 9 4 1 4
Total 33 22 16 20 11 19 43
7 of 15
Staff invited the approximately 40 permitted Commercial Fitness Trainers to respond to a survey about the proposed fee changes. By the time of publication of this staff report, 15 trainers had responded. When asked about the likelihood of continuing to obtain a permit should the pre-pandemic fees be reinstated, 40 percent said “not likely”, 20 percent said “maybe”, 13 percent said “likely”, and 27 percent said, “very likely”. When asked how they would respond if the current quarterly fee reductions and waivers were to become the new adopted fees, 100 percent of respondents answered that they were “very likely” to continue as a Commercial Fitness Trainer permittee. Additionally, 93 percent of respondents only train clients outdoors.
Staff also surveyed other cities’ commercial fitness trainer programs. Although no two cities operated the program in the exact same way, it was found that Santa Monica’s fees for fitness instruction were 414% higher than average fees across 8 other cities offering similar programs and the yearly cost of City trainers is 435% higher than average yearly cost in the other 8 cities (see Table6).
Table 6: Survey Results of Cities Offering Trainer Permits Cities Annual Permit Fee
Quarterly Use
Charge
Annual Cost to
Trainers
Austin $0 $775.00 $3,100.00
Beverly Hills $0 $41.50 $166.00
Denver $25 $150.00 $700.00
Encinitas, CA $0 $62.50 $250.00
Laguna Beach $0 $750.00 $3,000.00
Miami $0 $50.00 $200.00
San Diego $0 $45.32 $181.28
Seattle $75 $225.00 $1,200.00
Average Fee $262.42 $1,099.66
Santa Monica General
Parks & Beach $125.54 $1,350.00 $5,902.16
Palisades Park
$125.54 ($188.32,
if lottery is required) $2,025.00 $8,225.44
Percentage difference
between other Cities
Average qtr fee and
Santa Monica General
Parks and Beach 414.45% 436.73%
8 of 15
Considering the survey results and growth in the program, staff recommends adopting the reduced quarterly use fees on an on-going basis. If pre-pandemic fees were reinstated, trainers would likely leave the program. By modifying the pre-pandemic fee structure to reflect the current, pilot-program fees, it is likely the program will retain permit holders. Staff recommends the proposed fee modification to maintain participation in the permit program, which contributes to safe training options, activation of open spaces, and supports economic recovery for small local businesses.
The modification would affect quarterly use charges in all approved parks and beach locations (see Table 3: Approved Commercial Fitness Trainer Sites). The General Parks and Beaches would no longer require quarterly use charges and a reduced quarterly use charge would be required to train at Palisades Park and Beach Parks. To train at any location, a trainer would still be required to pay the annual permit fee and must submit quarterly use reports to be granted a new quarterly permit (see Table 7).
Adopting the reduced quarterly use fees would reduce a trainer’s operational expenses.
The recommended quarterly use fees would result in a 35% reduction in the cost to become a permitted instructor, which includes the purchase of a Santa Monica Business License, General Liability insurance, annual permit, and quarterly use permit (see Table 7)
Table 7: Operational Cost to become a Permitted Trainer Permit Group Size
SM
Business
License
Fee
Annual
Permit
Fee
Quarter
Use Charge
General Liability
Insurance -
Yearly cost on
Average
Yearly cost
to trainer
Pre-Pandemic
Medium Group Size
(≤ 10) $176.29 $121.77 $1,350.00 $400 $6,098.06
9 of 15
Recommended
Medium Group Size
(≤ 10) $176.29 $125.54 $900.00 $400 $4,301.83
The % difference between Pre-Pandemic fees and recommended fees: 35%.
Barnard Way Linear Park, Ocean View Park, Beach Park #1, Crescent Bay, South Beach, and Beach Green
In considering the proposed fee structure, the Recreation and Parks Commission recommended adding the Santa Monica Beach to the Tier 2 fee structure, in recognition of its iconic location. Staff generally supports the Commission’s recommendation and believes it would be most effectively implemented by including Barnard Way Linear Park, Ocean View Park, Beach Park #1, Crescent Bay, South Beach, and Beach Green into the Tier 2 fee structure and renaming the fee as “Palisades Park and Beach Parks”.
The six beach parks are iconic oceanfront locations, in high demand from a variety of users, and are adjacent to residences. Higher fees for these locations could help to manage usage and address impacts of training on community experience.
Table 8: Proposed Fee Structure
Locations Size
Annual
Permit Fee
Quarterly Use
Charge
Tier 1
General Parks/Beaches Large $125.54 $0.00
General Parks/Beaches Medium $125.54 $0.00
General Parks/Beaches Small $125.54 $0.00
Tier 2
Palisades Park/Beach Parks Large $125.54 $1,350.00
Palisades Park/Beach Parks Medium $125.54 $900.00
Palisades Park/Beach Parks Small $125.54 $450.00
Program participation is at an all-time high and staff believes a primary reason is because the quarterly-use charges were waived and reduced. If the City were to reinstate pre-pandemic fees, staff believes it would result in reduced safe and healthy fitness options for the community, limit economic recovery opportunities for small fitness businesses, and limit activation of parks. Restoration of pre-pandemic fees could also result in trainers operating in the parks and beach without permits. Unpermitted 10 of 15
instruction is a concern because trainers will not be aware of park rules that mitigate negative impact to plants and physical structures and regulate appropriate distances from city-operated classes and camps. Additionally, unpermitted trainers are not required to hold general liability insurance and additional insured, which leaves the City exposed to potential liability due to injury. Finally, unpermitted trainers are not required to sign a defense, indemnity, and hold harmless agreement which again leaves the City exposed to potential liability.
Fitness training activity is tracked and monitored by staff who work closely with the permitted trainers to build productive relationships, collaborate, and problem-solve. If a community member has a concern about a permitted trainer, staff can respond quickly to address the issue. The productive and synergistic relationships that occur between staff and permitted trainers do not occur between staff and any unpermitted trainers who operate in parks and beaches.
Smaller parks in residential neighborhoods, listed below (see Table9), are not appropriate for trainers as the additional use would diminish community access and experience and disrupt residents. Additionally, there is minimal available parking. Staff recommends that training continue to not be allowed in the following parks.
Table 9: No Commercial Fitness or Athletic instruction, classes or camps may occur in the following parks.
Ashland Park Muscle Beach Park
Beach Park #4 Ozone Park
Chess Park Pacific Street Park
Euclid Park Park Drive Park
Goose Egg Park Schader Park
Joslyn Park
Continued Use of Small and Medium Groups Sizes at Parks Under the Pilot Program, the allowable group sizes at three parks were increased.
Memorial Park and Tongva Park were increased from small to large group size and Barnard Way Linear Park went from small to medium. Memorial Park and Barnard Way 11 of 15
Linear Park are actively used by permittees and have contributed to the overall increase of permitted instructors. Additionally, both locations have sufficient onsite parking and are located a comfortable distance from residents. Lastly, Tongva Park became available under the pilot program. While only one trainer has used Tongva Park for one quarter, staff believes that training in Tongva Park could help activate the park and increase the sense of safety in the park. Staff recommends that the three locations be added to the approved general park list and only small and medium size groups be allowed to operate.
Removal of Parks from General Park and Beach List
Both Ken Genser Square and Airport Park Interim Space locations were made available for permitted fitness instruction under the pilot program; however, neither location has been used by trainers. Additionally, trainers have not expressed interest in using the two locations. As a result, staff recommends that Ken Genser and Airport Park Interim Space to be removed from the approved general park list.
Annual Cap
In considering the quarterly use fee reduction, the Recreation and Park Commission recommended implementing limits on the number of permits issued to trainers. Staff concurs with the Commission and recommends limiting the number of permits issued Citywide to 75 per calendar year. The proposed cap is intended to mitigate impacts on surrounding areas and limit overcrowding at parks and beaches.
Recreation and Parks Commission
On July 21, 2022, the Recreation and Parks Commission reviewed the proposed changes to the Commercial Fitness Trainer program and recommended that Council:
1. Waive quarterly use charges for fitness training at General City Parks
2. Remove Santa Monica Beach from the “General Parks and Beach list” and add it to the Palisades Park category, thus creating a “Palisades Park and Beach” category
12 of 15
3. Charge full, pre-pandemic fees for Palisades Park and Beach
4. Continue to allow small and medium group sizes at Barnard Way Linear Park and Memorial Park for fitness training
5. Remove Ken Genser Square and Airport Park Interim Open Space from the approved general park list for fitness training
6. Add limits on the number of trainers allowed at all parks and beaches.
Staff generally concurs with the Commission’s recommendations and has included them in the proposed actions. The only recommended adjustments to the Commission’s recommendations are to specify Beach Parks for inclusion in the Tier 2 fee structure and to maintain the reduced quarterly use fees for Tier 2 parks, given that increased fees would likely result in fewer permitted trainers and potential increased use of the Tier 2 parks by unpermitted trainers.
Alternatives
The Council could reinstate the pre-pandemic use charges or reduce quarterly use charges by 50 percent from pre-pandemic rates, rather than waiving fees for General Parks and Beach. However, it is possible that a 50 percent reduction would price out existing trainers and result in a loss of some permitted trainers. If Council elects to reinstate the pre-pandemic use charges, staff anticipates that a greater number of trainers will be priced out and the number of permitted trainers will return to prepandemic levels or below.
Re-instating the pre-pandemic fees is expected to have a significant impact on the Commercial Fitness Trainer Program because of the expected loss of trainer participation. The program’s historical trend reflects a yearly decrease in trainer participation, likely due to the pre-pandemic fees. The program goals are to provide a framework for rules for trainers to follow, give the community safe and healthy fitness 13 of 15
options, activate parks, and support local business owners to thrive. Re-instating the pre-pandemic fees would likely prevent the program from achieving its goals.
Council could also consider limiting the number of participants allowed per group in Ocean View Park, which is uniquely located close to residential properties. Recent resident complaints related to Ocean View Park have focused on amplified sound not associated with trainers, whereas trainers operating in all parks and at the beach may not use amplified sound. Currently, small, medium, and large groups are allowed in Ocean View Park. Council could limit trainers in the park to small (no more than two) and medium (no more than 10) group sizes.
Past Council Actions
Meeting Date Description
6/28/2022
(Attachment A)
Resolution #11432 revising the City’s master fee schedule to establish and revise certain permit and user fees and charges in the Community Development and Community Services Departments; Department of Transportation; Finance, Fire, Library, Public Works, and Police Departments; and Records and Elections Services. 5/10/2022
(Attachment B)
Resolution #11419 of the City Council extending the waiver of certain fees on a temporary basis until September 30, 2022.
06/08/2021
(Attachment C)
Adopt Resolution #11339 to authorize fee waivers for outdoor dining license fees and processing fees for outdoor dining permits, authorize fee waivers and fee reductions for outdoor fitness fees in City Parks and the Beach, extend the fee waivers associated with temporary use permits, establish fees for use of public property pursuant to Santa Monica Municipal Code Chapter 6.40 to commence no earlier than January 1, 2022, and authorizes temporary closure of portions of Main Street.
06/23/2020
(Attachment D)
Resolution #11263 revising the City’s master fee schedule to establish and revise certain permit and user fees and charges in the Community Development, Community Services, Public Works, and Police Departments.
8/8/2017
(Attachment E)
Resolution #11068 revising the schedule of fees for commercial fitness or athletic instruction, classes or camps in order to implement a waiver of the annual use charge for activities taking place exclusively at Reed Park.
1/13/2015
(Attachment F)
Program Pilot Year update and discussion of proposed changes. 7/24/2014 Information item providing an assessment of the first half of the pilot 14 of 15
(Attachment G) year, including summary results of a community survey. 10/22/2013
(Attachment H)
Ordinance #2441 amending Article IV of the Santa Monica Municipal Code Related to Commercial Fitness or Athletic Instruction, Classes or Camps in Parks and the Beach.
10/8/2013
(Attachment I)
Introduction and first reading of an Ordinance #2441 Amending SMMC Chapter 4.55 related to Commercial Fitness or Athletic Instruction, Classes or Camps in Parks and the Beach; and Adopt a Fee Resolution #10779 Establishing Permit Fees and Use Charges. 4/23/2013
(Attachment J)
Options for Addressing Use of City Parks and the Beach for Commercial Fitness Instruction, Classes or Camps
4/10/2012
(Attachment K)
Ordinance Amending the Santa Monica Municipal Code Sections Relating to Park and Beach Use and Direction on Non-City Sponsored Fitness Classes in Parks and the Beach
1/19/2012
(Attachment L)
Recreation and Parks commission supported proposed modifications to the codes.
Financial Impacts and Budget Actions
The recommended action would result in a revenue reduction of $24,300. If the recommended action is approved, staff would adjust the CSD FY 2022-23 revenue budget at midyear and would incorporate the approved fee changes into the City’s master fee schedule.
Prepared By: Thomas Carpenter, Community Services Program Coordinator Approved Forwarded to Council
Attachments:
A. June 28, 2022 Resolution #11432 -Master Fee Schedule B. May 10, 2022 Staff Report-Resolution #11419
C. June 8, 2021 Resolution #11339
D. June 23, 2020 Resolution #11263
E. August 8, 2017 Resolution #11068
F. January 13, 2015 Council Report
15 of 15
G. July 24, 2014 Information Item
H. April 23, 2013 Staff Report
I. October 22, 2013 Staff Report
J. October 8, 2013 Staff Report
K. April 10, 2012 Staff Report
L. January 19, 2012 Recreation and Parks Meeting
M. August 2022 -Commercial Fitness Fees Resolution