052825 PARKS AND RECREATION COMMISSION AGENDA PACKET

Page 3 of 5 Gym Rental Fees Co-sponsor gym rentals have been evaluated using the same cost recovery methodology as all other programs and services. Similar to co-sponsor field rentals, this category also receives a substantial subsidy compared to other rental groups. Unlike co-sponsor field users, co-sponsor gym groups have historically paid an hourly rate for gym use. As service delivery costs have increased over time, the hourly rate for gym rentals has also been adjusted accordingly, resulting in a lower overall subsidy than field rentals. While the rate remains subsidized to reflect the community benefit provided by these groups, it more closely aligns with the maximum subsidy of other co-sponsor rental categories. Staff will continue to monitor service costs and consider future adjustments to ensure continued alignment with the updated model and the City’s fiscal sustainability objectives. Field Light Rates To improve cost recovery and reflect the true cost of service delivery, a new table outlining maximum subsidies for field lighting based on actual costs of each field has been added to the Proposed MFS (Attachment 2). Over the past decade, field light fees have only increased by $3 per hour, despite substantial rises in electricity rates. As a result, the current fee structure no longer aligns with actual utility costs. The proposed structure would result in a significant hourly rate adjustment to align with true costs. While the proposed increase is considerable, it is necessary to ensure that light usage fees better reflect the true cost of providing this service and help offset the rising expenses associated with electricity. Fees would be given a maximum general fund subsidy by rental category and updated each July 1 to reflect actual costs. Facility/Picnic Rental Fees In this proposed model, facility and picnic fees will be assessed using the same framework applied in the updated cost recovery model. Rental categories will be given a maximum general fund subsidy based on their impact on the community and universal value. Rentals with greater public benefit are eligible for higher subsidy levels, while those with limited community impact are given lower to no subsidies (Attachment 2). This is accomplished through user categories, with co-sponsored user groups receiving the highest GF subsidy (40%), followed by non-profits (30%), residents (20%), and then non-residents and businesses (0%). Refunds Current practice stipulates that requests for refunds submitted at least ten days prior to the start of the class or program will be issued a full refund and those submitted at least five business days before the start of a program will be subject to a $5 administrative fee. No refunds are issued for requests received less than five days prior to the start of the program. The recommended policy removes the full refund prior to ten days before the start of the program. Many people register for multiple programs and then cancel all but one. This limits access to registration for other community members, and it is labor-intensive for staff to issue refunds. In the proposal, all refund requests submitted at least seven calendar days before the program or class start date will be charged a $10 fee. The change to seven days versus five business days is intended to honor the concept of one week, while reducing confusion to the customer. No refunds will be issued less than seven days prior to the start of the program. Page 15 of 29