Item 8 - Resolution Amending the Community Park Fees within the Master Fee Sched. to Include Mickey Cafagna Community CenterMarch 16, 2021, Item #8DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT City of Poway CITY COUNCIL March 16, 2021 Honorable Mayor and Members of the City Council Wendy Kaserman, Assistant City Manager/Acting Director of Community Services W1l---Belinda Romero, Community Services Manager (858) 668-4592 or bromero@poway.org Karen Tansey, Management Assistant (858) 668-4584 or ktansey@poway.org Resolution Amending the Community Park Fees Within the Community Services Section of the Master Fee Schedule to include the Mickey Cafagna Community Center While the Mickey Cafagna Community Center (MCCC) is under construction, staff conducted market research to establish new facility rental fees in preparation for its opening. The proposed fees reflect the current market research in similar facilities across the County and align with the previously approved Council fee structure that provides reduced rates for Poway residents, Poway non-profits, and Poway businesses. However, staff is recommending simplifying and consolidating the facility use categories at the MCCC to provide Poway residents, businesses, and non-profits a discount over base rates as opposed to the more complex rate structure adopted for other facilities that includes six different rate categories with varying levels of subsidies. Recommended Action: It is recommended that the City Council adopt the Resolution Amending the Community Park Fees within the Community Services Section of the Master Fee Schedule to include the Mickey Cafagna Community Center. Discussion: When the new, 28,911-square-foot Mickey Cafagna Community Center (MCCC) opens, it will be a multi-generational hub for education, recreation, and celebration. The MCCC will be home to the City of Poway's recreation classes, camps, programs (including older adult programming), and events for all ages. The community center will also have multiple spaces available for community rentals, including two vibrant halls, a catering kitchen, courtyards, and smaller rooms providing the perfect place to host celebrations and community gatherings of all kinds. There are significantly more rental space options 1 of 9
March 16, 2021, Item #8than existed in the former Community Center and Senior Center buildings. Fees Since 2015, the Community Services Department has been reviewing its fee structures and policies for each division to meet a Council goal of better aligning revenues with costs while continuing to provide the high-quality services for which Poway is known. Previous Council actions have modified fees and policies at the Poway Center for the Performing Arts, Lake Poway, indoor and outdoor rental facilities, Lake Poway Day Camp, and most recently, the Swim Center. Throughout the Community Services Department fee schedule, resident fees are lower than non-resident fees based on the Council fee philosophy that Poway residents contribute revenue to the General Fund that non-residents do not, including the payment of property taxes, as well as franchise fees. Community Services programs are 100% funded by the General Fund. It should be noted that although the fees for the MCCC are primarily based on market research and a previously-approved Council fee philosophy, it is common in the parks, recreation, and arts industries to supplement resident tax dollars with fees that support higher cost recovery based on various degrees of community benefit. Facilities and programming that support a large segment of the community are more subsidized by tax dollars than those benefitting smaller subsets of the community and/or individuals. Examples include fee structures in place for a private vs. public swim lesson, open play fields vs. rental for exclusive use, or community-wide events vs. programmed activities. Market Rate Survey In preparation for opening the MCCC and establishing facility rental fees, a market-rate survey was conducted in like facilities across the County. Data on rental fees was collected from the cities of Carlsbad, El Cajon, Encinitas, Escondido, La Mesa, and San Marcos. The former Community Park Auditorium and Senior Center rooms were also used for comparison. Rooms were evaluated based on square footage, maximum occupancy, and similar amenities. Categories To compare data across municipalities, staff examined how cities classify individuals or groups into categories to determine rental fees. The two categories that are consistent across cities are resident and non-resident, followed by a non-profit rate for 501 (c)(3) organizations. Data collected through the City of Poway's reservation system for 2018 (the last full year prior to construction) indicated that 87% of Community Park Auditorium and Senior Center BB Hall 1 rentals were by residents and resident non-profit groups. The remaining 13% of facility use came from non-residents, businesses, and non-profits outside of the City of Poway. There are currently six Community Services Facility Use Fee categories. At the same time staff was evaluating market rate fees, a simplification of categories was also considered. The Cities of Carlsbad and San Marcos have a base rate for individuals and a rate for non-profits with a discount applied for residents. This philosophy remains in line with the City Council's prior direction to provide reduced rates to Poway residents and Poway based non-profits and businesses. This new fee categorization would only apply to MCCC indoor facility rentals at this time. Staff will return to Council for application of these new categories across the department at a future date. Outdoor facility rentals at Community Park would remain unchanged. The two categories being proposed are: 1.) Base Rate Individual and 2.) Base Rate Non-Profit. Poway 2 of9
March 16, 2021, Item #8residents and Poway businesses would receive a 50% discount off the Base Rate Individual. Poway non-profits would receive a 50% discount off the Non-Profit rate. Findings Based on the market research conducted and a two-category facility use fee with discounts for residents and resident non-profits, the following per-hour facility rentals fees are proposed for the MCCC. Along with the proposed MCCC fees and average market rate for residents, the former Community Park facility fee is also listed in the tables below as a point of reference. The fees are not necessarily like for like because the MCCC rental spaces are different from the old buildings and the fee structure has been consolidated. Sycamore Hall Sycamore Hall is a 2,941-square-foot room with a maximum capacity of approximately 200 people. Base Rate -Poway Resident Base Rate-Poway Non-Profit Individual Non-profit CP BB 1 $129.00/hr. $64.00/hr. $49.00/hr. Market Average $84.46/hr. MCCC $168.00/hr. $84.00/hr. $84.00/hr. $42.00/hr. Oak Hall Oak Hall is a 4,607-square-foot room with a maximum capacity of approximately 300 people. Base Rate -Poway Resident Base Rate-Poway Non-Profit Individual Non-Profit CP Auditorium + Nutrition. Room $234.00/hr. $116.00/hr. $87.00/hr. Market Average $133.80/hr. MCCC $268.00/hr. $134.00/hr. $134.00/hr. $67.00/hr. Willow Rooms Willow Rooms 1-6 range in size from 756 square-feet to 1,160 square-feet with a maximum capacity of approximately 50-70 people. Base Rate -Poway Resident Base Rate-Poway Non-Profit Individual Non-Profit CP BB 2/3 $97.00/hr. $49.00/hr. $36.00/hr. Market Average $45.06/hr. MCCC $90.00/hr. $45.00/hr. $45.00/hr. $22.50/hr. 3 of9
March 16, 2021, Item #8Courtyard The courtyards range in size from 1,875 square feet to 2,800 square feet with a capacity of 100 to 150 people. Base Rate -Poway Resident Base Rate-Poway Non-Profit Individual Non-Profit CP Auditorium Patio $51.00/hr. $25.00/hr. $19.00/hr. Market Average $64.36/hr. MCCC $110.00/hr. $55.00/hr. $55.00/hr. $28.00/hr. Catering Kitchen The Catering Kitchen will be an optional add-on to rentals in Oak Hall or Sycamore Hall. Base Rate -Poway Resident Base Rate-Poway Non-Profit Individual Non-Profit CP Kitchen $68.00/hr. $34.00/hr. $25.00/hr. Market Average $29.96/hr. MCCC $60.00/hr. $30.00/hr. $30.00/hr. $15.00/hr. Prior to construction of the new community center, there were a number of Poway non-profits who utilized the small meeting spaces at the Senior Center after 5:00 p.m. and on Sundays, which was the City's use time. In the old facility, these groups enjoyed a severely discounted flat rental rate of $26 per quarter. Recognizing the MCCC is a brand new facility that the City is investing approximately $13 million to build, under the proposed fee structure for the MCCC, Poway non-profits would have the opportunity to rent the Willow rooms at a significantly discounted hourly rental rate, but not a flat quarterly rate For those Poway non-profit groups unwilling to pay the discounted hourly rate, they would still have the opportunity to take advantage of the $26 per quarter rate at Old Poway Park, the Meadowbrook Gymnasium room, Twin Peaks Multipurpose room, or at the Lake Poway Pavilion. No fee waivers or additional discounts will be considered for any group using the MCCC. Bingo operations would be considered older adult programming and fall under the auspices of a City function. Operations Per the Community Services Facility Rules and Regulations Policy, setup and cleanup time is included in the total rental hours. Tables and chairs are provided in rooms but it is the responsibility of the rental client to set them up and return them to the racks at the end of the event. No additional staffing has been added to the Community Park division to provide these services. Based on the existing Community Services Rules and Regulations, Poway residents, Poway Businesses, and Poway non-profits can book facilities one year in advance. Non-residents, non-resident non-profits, and non-resident businesses can book no sooner than six months in advance except for weddings, which may be reserved one year in advance. Rentals serving alcohol will also follow the existing Facility Rules and Regulations. Currently, events are limited to wine and beer. Any changes to these regulations would require a return to City Council for approval. In discussing the Facility Rules and Regulations document with the City Manager, in addition to any changes the City Council may want staff bring 4of9
March 16, 2021, Item #8back relative to MCCC operations, it may help improve efficiency going forward for the City Council to also consider granting the City Manager the authority revise the Rules and Regulations with the exception of those regulations specifically established in the Poway Municipal Code (PMC). Should Council want to move forward with changes to the regulations and the manner in which they are updated, staff would plan to return to Council within the next few meetings in order to have the changes in place prior to accepting facility reservations at the MCCC in order to maximize options available to potential rental clients. The rental days and times will remain the same as the former facilities, with the option to stay later or rent on Sunday mornings. Per the existing fee schedule, a full-cost recovery hourly staff rate will be charged for rentals outside of normal operating hours. Review of Fees The MCCC is the first new facility that the City has built in quite some time. Although staff could predict with some accuracy how the Community Park Auditorium and Senior Center BB Halls would be rented year over year, MCCC usage can only be estimated at this time. Initial usage is also likely to be impacted by the ongoing pandemic. After the facility opens and all health orders have been lifted, staff will monitor utilization of the facility to ensure the revised fee structure is not negatively impacting use of the facility. Indexing for Inflation. Similar to other recent fee adjustments approved by the City Council, annual Consumer Price Index (CPI) fee adjustments are recommended to help ensure fees remain consistent with costs. The new fees added to the City's Master Fee Schedule via Exhibit 1 of Attachment A will be increased each January by the annual change in the CPI for All Urban Consumers, San Diego-Carlsbad (2020 = 303.932). The year reference and related annual index number are provided to help individuals calculating the annual change in the index select the correct data series given the number and variations of CPI data series. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA.) Fiscal Impact: There is no direct fiscal impact resulting from this report. In the last full year of operations prior to construction of the MCCC, the community center and Poway Senior Center generated $58,398 in rental revenue. If the same usage patterns continue once full operations are permitted at the MCCC, the City will see higher revenues under the new fee structure. The anticipated revenue generated from the new MCCC rentals offsets a portion of the actual cost of implementing these services and is placed in the General Fund. Public Notification: A Notice of Public Hearing was published in the Poway News Chieftain on Thursday, February 25, 2021, and Thursday, March 4, 2021. Attachments: A. Resolution Amending the Community Park Fees Within the Community Services Section of the Master Fee Schedule to include the Mickey Cafagna Community Center 5 of9
March 16, 2021, Item #8Reviewed/ Approved By: Assistant City Manager 6 of9 Reviewed By: Alan Fenstermacher City Attorney
March 16, 2021, Item #8RESOLUTION NO. 21-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, AMENDING THE COMMUNITY PARK FEES WITHIN THE COMMUNITY SERVICES SECTION OF THE MASTER FEE SCHEDULE TO INCLUDE THE MICKEY CAFAGNA COMMUNITY CENTER WHEREAS, California Government Code section 66016 et seq. establishes procedures for the adoption of fees for services by local government; WHEREAS, rental fees are_charged in accordance with the City's Master Fee Schedule; WHEREAS, The Community Park Auditorium and Senior Center were demolished to make way for the Mickey Cafagna Community Center; and WHEREAS, it is recommended that certain Community Services rental fees be added to the Community Park fees to reflect the new facility use. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The City Council finds that this amendment to the Master Fee Schedule is exempt from the requirements of CEQA pursuant to CEQA Guidelines Section 15273 (a) (1 ). SECTION 2: The City's Master Fee Schedule is hereby amended to establish those Community Services Mickey Cafagna Community Center fees presented at this meeting, and set forth in Exhibit 1 to this Resolution, and are hereby approved and adopted. SECTION 3: Community Services Mickey Cafagna Community Center fees set forth in Exhibit 1, attached hereto, will increase each January by the annual change in the Consumer Price Index -All Urban Consumers, San Diego-Carlsbad (2020 = 303.932), as published by the United States Bureau of Labor Statistics, subject to rounding to the nearest whole dollar. SECTION 4: The proposed fees set forth in Exhibit 1 are based on the costs incurred by the City in providing services and maintaining the facilities, which the City Council finds to be reasonable. II II II II II 7 of9 SECTION 5: This Resolution shall become effective immediately.
March 16, 2021, Item #8Resolution No. 21-Page PASSED, ADOPTED, AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 16th day of March, 2021 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Vaida Pavolas, CMC, City Clerk 8 of9
March 16, 2021, Item #8Resolution No. 21-Page Exhibit 1: Items to be Added to the Community Services Section of the Master Fee Schedule effective March 16, 2021: Master Fee Schedule Community Services Description Fee **: Indicates fee is subject to CPI adjustment every year beginning January 2022 Description Fee Community Park Mickey Cafagna Community Center** Facility Use Categories: 1: Base Rate Individual 2: Poway Resident 3: Base Rate Non-profit 4: Poway Non-profit $ 110 1 (hourly rate) Courtyard $ 55 2 (hourly rate) $ 55 3 (hourly rate) $ 28 4 (hourly rate) $ 60 1 (hourly rate) Kitchen $ 30 2 (hourly rate) $ 30 3 (hourly rate) $ 15 4 (hourly rate) $ 268 1 (hourly rate) Oak Hall $ 134 2 (hourly rate) $ 134 3 (hourly rate) $ 67 4 (hourly rate) $ 200 1 (hourly rate) Oak Hall East w/patio $ 100 2 (hourly rate) $ 100 3 (hourly rate) $ 50 4 (hourly rate) $ 168 1 (hourly rate) Oak Hall West $ 84 2 (hourly rate) $ 84 3 (hourly rate) $ 42 4 (hourly rate) $ 168 1 (hourly rate) Sycamore Hall $ 84 2 (hourly rate) $ 84 3 (hourly rate) $ 42 4 (hourly rate) $ 90 1 (hourly rate) Willow Rooms 1-6 $ 45 2 (hourly rate) $ 45 3 (hourly rate) $ 23 4 (hourly rate) 9 of9