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Home My WebLink AboutAGENDA REPORT 2013 1218 CCSA REG ITEM 10L ITEM 10.L. MOORPARK CITY COUNCIL AGENDA REPORT a0i3 TO: Honorable City Council FROM: Stephanie Anderson, Recreation Superintendence DATE: November 8, 2013 (Meeting of December 18, 2013) SUBJECT: Consider Recreation Programs Cost Recovery Summary Fiscal Year 2012-2013 BACKGROUND On January 18, 2012, the City Council approved the Recreation Programs and Services Cost Recovery Policy (Policy). The Policy defines costs, revenue sources, program categories, and recovery levels. Costs currently reported include direct costs (costs charged to the programs line item budget and part-time staff costs) and indirect costs (full-time staff costs and overhead costs such as facility use and general department supplies). Each program offered by the Recreation Division is assigned a program category, based on factors including type, purpose, and program structure. Program categories are each placed into a recovery level. There are five recovery levels, ranging from level 1 (high subsidy) to level 5 (minimal subsidy). The Policy establishes both the minimum cost recovery and target cost recovery requirements for each program category. Both the minimum and target amounts are noted in the cost recovery summaries in this report. Programs are expected to reach their minimum recovery goal within a period not to exceed one year. Programs that are unable to meet the minimum cost recovery will be reviewed for consideration of appropriate action, including restructuring or eliminating the program. The City Manager is also authorized to exclude individual programs from the requirements of the Cost Recovery Policy. The Policy requires an annual reporting to the Parks and Recreation Commission and Moorpark City Council on Recreation Programs and whether those programs met their cost recovery goals. Attached for reference is the Cost Recovery Policy, which establishes minimum and target cost recovery percentages for recreation programs. 282 Moorpark City Council December 18, 2013 Page 2 DISCUSSION This report serves as a financial summary of Recreation Division programs for the fiscal year 2012-2013. The seasons included in the report are Summer 2012, Fall 2012, Winter 2013, and Spring 2013. The report was presented to the Parks and Recreation Commission on November 4, 2013. The Parks and Recreation Commission provided feedback on the report and concurred with staff recommendations for programs not meeting their minimum recovery goals. Included in this report is a summary listing of programs based on their status of meeting cost recovery goals; financial summaries for each program; and staff recommended action plans for those programs not meeting their minimum recovery goals. Cost Recovery Goal Summaries Programs meeting target Programs meeting Programs not meeting cost recovery goal minimum cost recovery minimum cost recovery goal goal 3rd of July Fireworks Trick or Treat Village Moorpark Has Talent Extravaganza Breakfast with Santa General Teen Events Camp Moorpark Easter Egg Hunt Teen Skate Events Moorpark Arts Festival The Hang Out Teen Band Events Adult Basketball Leagues Get a Job Workshop Adult Soccer Leagues Recreation Classes Adult Softball Leagues Youth Basketball Leagues 283 Moorpark City Council December 18, 2013 Page 3 Financial and Cost Recovery Summaries for Recreation Division Programs EVENTS 3rd of July Fireworks Extravaganza Tuesday 7/3/12 from 4:00 to 9:30 p.m. at AVCP; admission $4.00 Fireworks Extravaganza Financial Summary Attendance 12,100 Revenue $53,494 Direct Costs $40,317 Indirect Costs F/T Staff* $14,499 Overhead Costs $1 ,693 Total Costs $56,509 Gross Profit / (Loss) $13,177 Net Profit / (Loss) ($3,015) Cost Recovery summary (Category: Community Event): Recovered Minimum Target Percent Direct Costs Recovered: 100% 25% 100% Percent Division Indirect Costs Recovered: 81% 0% 25% Minimum Recovery Met: Yes Target Recovery Met: Yes `Includes estimates for full-time competitive service parks and public works staff. Trick or Treat Village Saturday, 10/27/12 from 4:00 to 7:00 p.m. at AVRC; admission $5.00/$10.00/$15.00 Trick or Treat Village Financial Summary Attendance 575 Revenue $1,725 Direct Costs $2,124 Indirect Costs F/T Staff $5,965 Overhead Costs $611 Total Costs $8,700 Gross Profit / (Loss) ($399) Net Profit/ (Loss) ($6,975) 284 Moorpark City Council December 18, 2013 Page 4 Cost Recovery summary (Category: Special Event): Recovered Minimum Target Percent Direct Costs Recovered: 81% 50% 100% Percent Division Indirect Costs Recovered: 0% 0% 50% Minimum Recovery Met: Yes Target Recovery Met: No Breakfast with Santa Saturday, 12/22/12 from 8:00 a.m. to 12:00 noon at AVRC; registration fee $0 to $15 Breakfast with Santa Financial Summary Enrollments 116 Revenue $1,268 Direct Costs $1,592 Indirect Costs F/T Staff $3,056 Overhead Costs $257 Total Costs $4,906 Gross Profit/ (Loss) ($324) Net Profit/ (Loss) ($3,637) Cost Recovery summary (Category: Special Event): Recovered Minimum Target Percent Direct Costs Recovered: 80% 50% 100% Percent Division Indirect Costs Recovered: 0% 0% 50% Minimum Recovery Met: Yes Target Recovery Met: No Easter Egg Hunt Saturday, 3/30/13 from 10:00 a.m. to 1 :00 p.m. at AVCP; admission $5.00/$10.00 Easter Egg Hunt Attendance 1,260 Revenue $3,355 Direct Costs $2,103 Indirect Costs F/T Staff $3173 Overhead Costs $390 Total Costs - $5,666 Gross Profit / (Loss) $1,252 Net Profit/ (Loss) ($2,311) 285 Moorpark City Council December 18, 2013 Page 5 Cost Recovery summary (Category: Special Event) Recovered Minimum Target Percent Direct Costs Recovered: 100% 50% 100% Percent Division Indirect Costs Recovered: 35% 0% 50% Minimum Recovery Met: Yes Target Recovery Met: No Moorpark Has Talent Saturday, 3/22/13 at 7:00 p.m. at HSAC; entry fee $10.00; show tickets $10.00/$12.00 Moorpark Has Talent Attendance 212 Revenue $4,881 Direct Costs $1,710 Indirect Costs F/T Staff $3,479 Overhead Costs $454 Total Costs $5,643 Gross Profit / (Loss) $3,171 Net Profit/ (Loss) ($762) Cost Recovery summary (Category: Other Event) Recovered Minimum Target Percent Direct Costs Recovered: 100% 100% 100% Percent Division Indirect Costs Recovered: 81% 100% 100% Minimum Recovery Met: No Target Recovery Met: No Moorpark Arts Festival Saturday, 4/27/13 from 10:00 a.m. to 4:00 p.m. on High Street; free admission Moorpark Arts Festival Attendance 3,500 Revenue $1,700 Direct Costs $2,645 Indirect Costs F/T Staff $8,377 Overhead Costs $826 Total Costs $11,848 Gross Profit / (Loss) ($945) Net Profit I (Loss) ($10,148) 286 Moorpark City Council December 18, 2013 Page 6 Cost Recovery summary (Category: Community Event) Recovered Minimum Target Percent Direct Costs Recovered: 64% 25% 100% Percent Division Indirect Costs Recovered: 0% 0% 25% Minimum Recovery Met: Yes Target Recovery Met: No General Teen Events Twilight Movie Night: Saturday, 6/9/12 from 8:00-10:00 p.m. at AVRC; admission $3.00 Game Night: Saturday, 9/8/12 from 6:00-9:00 p.m. at AVRC; admission $5.00 Teen Movie Night: Saturday, 10/20/12 from 4:30-10:00 p.m. at AVRC; admission free Holiday Movie Marathon: Friday, 12/28/12 from 1:00-8:00 p.m. at HSAC; admission $5.00-$15.00 Game Night: Friday, 1/18/13 from 6:00-9:00 p.m. at AVRC; admission $5.00 Sports Day: Saturday, 2/2/13 from 1:00-4:00 p.m. at AVRC; admission $5.00 Cupcake Challenge: Friday, 2/8/13 from 5:00-8:00 p.m. at MCC: entry fee $10.00 Pi Day: Thursday, 3/14/13 at 3:30 p.m. at Tierra Rejada park; admission $3.00 (canceled day of event due to no attendance) Movie Night: Saturday, 3/9/13 from 5:30-10:00 p.m. at AVRC; admission free General Teen Event Summer Fall Winter Spring Financial Summaries 2012 2012 2013 2013 Total FY 12-13 Attendance (Total) 21 46 110 20 197 Revenue $78 $110 $501 $5 $694 Direct Costs $94 $332 $1,654 $88 $2,168 Indirect Costs F/T Staff $1 ,451 $2,176 $3,482 $1,741 $8,850 Overhead Costs $327 $544 $896 $435 $2,202 Total Costs $1,872 $3,052 $6,032 $2,264 $13,220 Gross Profit/ (Loss) ($16) ($222) ($1,153) ($83) ($1,474) Net Profit/(Loss) ($1,794) ($2,942) ($5,530) ($2,259) ($12,525) Cost Recovery summary (Category: Special Event) Recovered Minimum Target Percent Direct Costs Recovered: 32% 50% 100% Percent Division Indirect Costs Recovered: 0% 0% 50% Minimum Recovery Met: No Target Recovery Met: No 287 Moorpark City Council December 18, 2013 Page 7 Teen Band Events Battle of the Bands: Saturday, 7/21/12 from 6:00-10:00 p.m. at AVRC; Admission $5.00 ArroyoPalooza: Saturday, 8/4/12 from 1:00-5:00 p.m. at AVRC; Admission free Band Jam: Saturday, 11/10/12 from 7:00-10:00 p.m. at AVRC; Admission $5.00 Band Jam: Friday, 12/7/12 from 7:00-10:00 p.m. at AVRC; Admission $5.00 Battle of the Bands: Saturday, 4/6/13 from 7:00-10:00 p.m. at AVRC: Admission $5.00 (canceled due to lack of bands) Summer Fall 2012 Winter Spring Total FY Band Events 2012 2013 2013 12-13 Attendance 267 43 28 0 338 Revenue $760 $142 $56 $0 $958 Direct Costs $804 $200 $177 $0 $1,181 Indirect Costs F/T Staff $2,901 $1,088 $870 $870 $5,729 Overhead Costs $678 $254 $238 $208 $1,378 Total Costs $4,383 $1,542 $1,285 $1,078 $8,288 Gross Profit / (Loss) ($44) ($58) ($121) $0 ($223) Net Profit/ (Loss) ($3,623) ($1,400) ($1,229) ($1,078) ($7,330) Cost Recovery summary (Category: Special Event): Recovered Minimum Target Percent Direct Costs Recovered: 81% 50% 100% Percent Division Indirect Costs Recovered: 0% 0% 50% Minimum Recovery Met: Yes Target Recovery Met: No Teen Skate Events Skate Fest: Saturday, 5/11/13 from 10:00 a.m.-1:00 p.m. at Poindexter Park; admission $3.00 to enter contest (2 teens entered contest, other attendees observed) Skate Fest Spring 2013 Total FY 12-13 Attendance (Total) 32 32 Revenue $6 $6 Direct Costs i $152 $152 Indirect Costs F/T Staff $870 $870 _ Overhead Costs $208 $208 288 Moorpark City Council December 18, 2013 Page 8 Total Costs $1,280 $1,280 Gross Profit / (Loss) ($146) ($146) Net Profit I (Loss) ($1,224) ($1,224) Cost Recovery summary (Category: Special Event) Recovered Minimum Target Percent Direct Costs Recovered: 04% 50% 100% Percent Division Indirect Costs Recovered: 0% 0% 50% Minimum Recovery Met: No Target Recovery Met: No Teen Enrichment Programs Get a Job Workshop: Thursday, 4/11/13 from 3:30-4:30 p.m. at AVRC; free admission Spring 2013 General Teen Events Total FYI2-13 Attendance 8 8 Revenue $0 $0 Direct Costs $0 $0 Indirect Costs F/T Staff $870 $870 Overhead Costs $214 $214 Total Costs $1,084 $1,084 Gross Profit / (Loss) $0 $0 Net Profit/ (Loss) ($1.0845) ($1,0845) Net Profit / (Loss) Per Participant ($135.50) ($135.50) Cost Recovery summary (Category: Vital Services) Recovered Minimum Target Percent Direct Costs Recovered: 100% 25% 100% Percent Division Indirect Costs Recovered: 0% 0% 25% Minimum Recovery Met: Yes Target Recovery Met: No Teen Dances No teen dances were held during the 2012/2013 fiscal year. 289 Moorpark City Council December 18, 2013 Page 9 Other Teen Programs The Hang Out: Wednesday, 9/26/12 from 9:00 a.m.-3:00 p.m. at AVRC; $20 registration fee. Fall 2012 General Teen Events Total FY12-13 Attendance 0 0 Revenue $0 $0 Direct Costs 0 0 Indirect Costs F/T Staff $1 ,088 $1,088 Overhead Costs $254 $254 Total Costs $1,342 $1,342 Gross Profit/ (Loss) 0 0 Net Profit/ (Loss) ($1,342) ($1,342) Net Profit / (Loss) Per Participant N/A N/A Cost Recovery summary (Category: Day Camps) Recovered Minimum Target Percent Direct Costs Recovered: 100% 100% 100% Percent Division Indirect Costs Recovered: 0% 50% 75% Minimum Recovery Met: No Target Recovery Met: No Recreation Classes Summer 2012: June through August Fall 2012: September through November Winter 2013: December through January Spring 2013: March through April Summer Fall 2012 Winter Spring Total Summer Classes 2012 2013 2013 FY12-13 Classes Offered 144 105 124 112 485 Classes Run 88 63 73 76 300 Classes Canceled 56 42 51 36 185 Cancelation Rate 38.9% 40% 41% 32% 38% Enrollments 663 656 553 607 2479 Revenue $57,692 $59,761 $58,460 $60,572 $236,485 Direct Costs $39,762 $41,182 $41 ,813 $ 42,325 $165,082 Indirect Costs 290 Moorpark City Council December 18, 2013 Page 10 F/T Staff $16,231 $16,231 $16,231 $ 16,231 $64,924 Overhead Costs $4,523 $5,112 $4,877 $ 5,380 $19,892 Total Costs $60,516 $62,525 $62,921 $ 63,936 $249,898 Gross Profit / (Loss) $17,930 $18,579 $16,647 $18,247 $71,403 Net Profit/ (Loss) ($2,824) ($2,764) ($4,461) ($3,364) ($13,413) Cost Recovery summary (Category: Recreation Classes): Recovered Minimum Target Percent Direct Costs Recovered: 100% 100% 100% Percent Division Indirect Costs Recovered: 84% 75% 100% Minimum Recovery Met: Yes Target Recovery Met: No Camp Moorpark Summer Camp: Monday through Friday, 6/4/12 through 8/28/12 from 7:00 a.m. to 6:00 p.m. at AVRC; daily registration fees $25.00-$46.00; annual registration fees $23.00- $110.00 Adventure Camp: Ages 10 to 15 Camp Moorpark: Ages 6 to 10 Mini-Camp Moorpark: Ages 4 years 9 months to 7 Winter Camp: Wednesday through Friday 12/26 to 12/28/2012 and 1/2 to 1/4/2013 from 8:00 a.m. to 6:00 p.m. at AVRC; daily registration fees $23.00-$36.00; annual registration fee $35.00 (if did not attend summer 2012) Spring Camp: Monday through Friday, 3/25/12 through 3/29/12 from 8:00 a.m. to 6:00 p.m. at AVRC; daily registration fees $23.00 - $36.00; annual registration fee $35.00 (if did not attend summer 2012) Camp Moorpark Financial Summer Winter Spring Total FY Summary 2012 12113 2013 12-13 Participants (unduplicated) 329 39 61 429 Total Enrollments 6,806 163 190 7,159 Average Daily Attendance 113.4 27.2 38 Revenue $212,028 $4,307 $5,380 $221,715 Direct Costs $141,596 $2951 $2,471 $147,018 , Indirect Costs F/T Staff $57,006 $2,522 $3,312 $62,840 Overhead Costs $18,029 $1,206 $1,223 $20,458 Total Costs $216,631 $6,679 $7,006 $230,316 Gross Profit / (Loss) $70,432 $1,356 $2,909 $74,697 Net Profit/ (Loss). ($4,603) ($2,372) ($1,626) ($8,601) 291 Moorpark City Council December 18, 2013 Page 11 Cost Recovery summary (Category: Day Camps): Recovered Minimum Target Percent Direct Costs Recovered: 100% 100% 100% Percent Division Indirect Costs Recovered: 90% 50% 75% Minimum Recovery Met: Yes Target Recovery Met: Yes Adult Sports Leagues Adult Softball Leagues Summer 2012: Thursdays and Fridays, games at AVCP and PHP; 28 teams; registration $410.00 Fall 2012: Thursdays and Fridays, games at AVCP and PHP; 26 teams; registration $410.00 Spring 2013: Thursdays and Fridays, games at AVCP and PHP; 27 teams; registration $410.00 Summer Fall 2012 Spring Total Adult Softball 2012 2013 FY12-13 Enrollments 355 337 433 1125 Revenue $11,480 $10,660 $11,096 $33,236 Direct Costs $4,838 $5,104 $5,267 $15,209 Indirect Costs F/T Staff $4,113 $4,113 $4,113 $12,339 Overhead Costs $4,083 $4,226 $3,541 $11,850 Total Costs $13,034 $13,443 $12,921 $39,398 Gross Profit / (Loss) $6,642 $5,556 $5,829 $18,027 Net Profit/ (Loss) $(1,554) ($2,783) ($1,825) ($6,162) Cost Recovery summary (Category: Adult Sports Programs): Recovered Minimum Target Percent Direct Costs Recovered: 100% 100% 100% Percent Division Indirect Costs Recovered: 75% 75% 100% Minimum Recovery Met: Yes Target Recovery Met: No Adult Basketball Leagues Summer 2012: Mondays and Thursdays, games at AVRC; 16 teams; registration $365.00 Fall 2012: Mondays and Thursdays, games at AVRC; 12 teams; registration $365.00 Winter 2013: Mondays and Thursdays, games at AVRC; 14 teams; registration $300.00 292 Moorpark City Council December 18, 2013 Page 12 Spring 2013: Mondays and Thursdays, games at AVRC; 14 teams; registration $365.00 Summer Fall Winter Spring Total Adult Basketball 2012 2012 2013 2013 FY12-13 Enrollments 116 90 106 119 431 Revenue $5,840 $4,380 $4,260 $5,170 $19,650 Direct Costs $2,781 $2,260 $2,869 $2,568 $10,478 Indirect Costs F/T Staff $2,464 $2,464 $2,464 $2,464 $9,856 Overhead Costs $1,883 $1,498 $1 ,569 $1,725 $6,675 Total Costs $7,128 $6,223 $6,902 $6,757 $27,010 Gross Profit / (Loss) $3,059 $2,120 $1,391 $2,602 $9,172 Net Profit / (Loss) ($1,288) ($1,842) ($2,642) ($1,587) ($7,359) Cost Recovery summary (Category: Adult Sports Programs): Recovered Minimum Target Percent Direct Costs Recovered: 100% 100% 100% Percent Division Indirect Costs Recovered: 55% 75% 100% Minimum Recovery Met: No Target Recovery Met: No Adult Soccer Leagues Summer 2012 (7 on 7): Tuesdays and Wednesdays, games at PHP; 16 teams; registration $325.00 Fall 2012 (7 on 7): Tuesdays and Wednesdays, games at AVCP; 12 teams; registration $345.00 Winter 2013 (Futsal): Wednesdays, games at AVRC; 8 teams; registration $340.00 Spring 2013 (7 on 7): Tuesdays and Wednesdays, games at AVRC; 15 teams; registration $345.00 Summer Fall Winter Spring Total Adult Soccer 2012 2012 2013 2013 FY12-13 Enrollments 153 247 99 219 718 Revenue $5,200 $6,210 $2,840 $5,255 $19,505 Direct Costs $2,642 $3,474 $1,096 $2,865 $10,077 Indirect Costs _ F/T Staff $2,975 $2,975 $1,700 $2,975 $10,625 Overhead Costs $1,407 $2,416 $875 _ $1,969 $6,667 Total Costs $7,024 $8,865 $3,671 $7,809 $28,069 293 Moorpark City Council December 18, 2013 Page 13 Gross Profit / (Loss) $2,558 $2,736 $1,744 $2,390 $9,428 Net Profit/ (Loss) ($1,824) ($2,655) ($831) ($2,554) ($7,864) Cost Recovery summary (Category: Adult Sports Programs): Recovered Minimum Target Percent Direct Costs Recovered: 100% 100% 100% Percent Division Indirect Costs Recovered: 55% 75% 100% Minimum Recovery Met: No Target Recovery Met: No Youth Basketball League Summer 2012: Saturdays games with weekly practice, games at AVRC; registration fee $68.00/ $78.00 Fall 2012: Saturdays games with weekly practice, games at AVRC; registration fee $68.00/ $78.00 Winter 2013: Saturdays games with weekly practice, games at AVRC; registration fee $68.00/ $78.00 Spring 2013: Saturdays games with weekly practice, games at AVRC; registration fee $68.00/ $78.00 Summer Fall Winter Spring Total Youth Basketball 2012 2012 2013 2013 FY12-13 Enrollments 124 127 152 154 557 Revenue $9,132 $9,275 $10,495 $11,048 $39,950 Direct Costs $4,398 $4,388 $4,472 $5,345 $18,603 Indirect Costs F/T Staff $3,803 $3,803 $3,803 $3,803 $15,212 Overhead Costs $3,027 $3,581 $4,250 $4,389 $15,247 Total Costs $11,228 $11,772 $12,525 $13,537 $49,062 Gross Profit / (Loss) $4,734 $4,887 $6,023 $5,703 $21 ,347 Net Profit/ (Loss) ($2,096) ($2,497) ($2,030) ($2,489) ($9,112) Cost Recovery summary (Category: Youth Sports Programs): Recovered Minimum Target Percent Direct Costs Recovered: 100% 100% 100% Percent Division Indirect Costs Recovered: 70% 50% 75% Minimum Recovery Met: Yes Target Recovery Met: No 294 Moorpark City Council December 18, 2013 Page 14 Staff Recommended Actions for Programs Not Meeting Minimum Cost Recovery Goals: Moorpark Has Talent The event is held at the High Street Arts Center, and helps promote that venue. It has received positive response from event participants and attendees. This event is currently categorized as "Other Event" because it requires participants to register and audition in advance, and substantial donated financial prizes are distributed to winners. This event is required to recoup 100% of indirect costs, and only recouped 81%. Although this is an improvement over last year (when only 29% of indirect costs were recouped) the program did not meet the minimum cost recovery requirement. Financial donations are used to pay for the prizes awarded to the event winners. Unless additional large sponsorships are received to supplement direct costs, it is unlikely this event will be able to meet its cost recovery minimum. This is primarily due to the fact that the venue can only accommodate a defined number of participants and attendees. Staff recommends that the event be excluded from the cost recovery requirements, as allowed by the Recreation Programs and Services Cost Recovery Policy Right of Exclusion. General Teen Events Providing recreation programming to the City's teen population is a priority for the City. These events are categorized as "Special Event" and are required to recoup at least 50% of direct costs. Over the course of this fiscal year, these events recouped only 32%, a decrease from last year's 45.9%. This is the second year these programs have not been able to meet the required minimum cost recovery. Staff recommends eliminating those specific events which have generally not met the minimum recovery, including movie nights, the Holiday Movie Marathon, Sports Day, and Pi Day. Staff will focus on events that have met or are close to meeting the minimum cost recovery, including game nights and cupcake challenges, and will continue to explore new teen events that will both draw larger numbers of teens and meet the minimum cost recovery requirements. Teen Skate Events As described for General Teen Events, providing recreation programming to the City's teen population is a priority. Teen Skate Events are also categorized as "Special Event" and are required to recoup at least 50% of direct costs. Over the course of this fiscal year, these events recouped only 4%, a significant decrease from last year's 31.9%. Due to poor attendance and issues with enforcement of safety gear rules, staff recommends discontinuing these events. 295 Moorpark City Council December 18, 2013 Page 15 The Hang Out This program was offered to provide activities for older middle school youth on a school free day. Due to a lack of interest in the program, it has not been offered again. Adult Basketball League This adult sports league is required to recoup 75% of indirect costs. Over the course of the fiscal year, it recouped 55% of indirect costs, a decrease from last year's 68%. Staff recommends continuing the program. In order to meet the minimum cost recovery requirement, enrollment in the program must be increased. Adult Soccer League This adult sports league is required to recoup 75% of indirect costs. Over the course of the fiscal year, it recouped 55% of indirect costs. Last year, this program did meet its minimum cost recovery requirement. Although participation and revenue in this program increased this year, compared to last year, the increase was not enough to keep pace with increases in both direct and indirect costs. Staff recommends continuing the program. In order to meet the minimum cost recovery requirement next year, staff will look for creative ways to reduce overall program costs and increase revenue (through increased enrollment and/or fee increases). STAFF RECOMMENDATION Receive and file report. Attachment 1 — Recreation Programs and Services Cost Recovery Policy Attachment 2 — Full Time Staff Cost Estimates 296 Attachment 1 Policy 6.16 Recreation Programs and Services Cost Recovery Policy 1. Purpose The purpose and intent of the City Council in adopting the Recreation Programs and Services Cost Recovery Policy is to provide direction to staff in calculating and establishing fees and charges for recreation programs, to establish a process to recover the appropriate portion of cost based on the recovery goals of the program, to provide a framework to modify or eliminate programs that do not meet the minimum cost recovery goals, and to determine the extent to which the General Fund will fund above the amount collected in fees recreation programs and services. 2. Program Costs Costs for each program shall be divided into three categories: 1. direct costs; 2. division indirect costs; and 3. other indirect costs. Each cost category shall have established minimum and target cost recovery percentages. Costs for programs shall be defined as follows: "Direct Costs" shall mean all costs directly associated with a program and charged to the program's budget, and all part-time staff costs associated with direct staffing of a program. "Division indirect Costs" shall mean all division costs associated with the program and charged to the division budget, facility costs, and staff costs associated with planning and administration of the program. "Other Indirect Costs" shall mean department overhead costs for the department director and his/her administrative staff and city-wide overhead costs associated with the operation of the division. 3. Revenue Sources A variety of revenue sources may be used to meet a program's designated cost recovery goal. The City Manager or his/her designee shall determine the most appropriate revenue sources to assign to a program. Revenue sources include the following: User Fees: Fees charged to the individual or team participating in a program, including admission fees and registration fees. Sponsorships and Donations: Contributions in support of a specific program or service given to the City by private businesses or organizations. 297 Vendor Fees: Fees charged to vendors (such as food booths and arts and crafts booths) to participate in recreation programs. Grants: Funding received by the City from a public, private, or non-profit grant or subvention program. Advertising and Promotional Fees: Fees charged for advertisements placed in recreation publications, temporary program or facility naming rights, providing program or service equipment or supplies baring the promoter's name or logo, and providing ancillary items or printed materials baring the promoter's name or logo. 4. Program Categories Each recreation program and service offered by the Recreation Division shall be placed in a Program Category. A program shall be placed in the category that best defines the type, purpose, and structure of the program. Program Categories shall be defined as follows: A. "Community Event" shall mean a community-wide event that meets all of the following criteria: 1) benefits the community as a whole; 2) appeals to broad segments of the community; 3) is traditionally offered by a public agency; 4) does not require advance registration to attend. Examples: Fireworks Extravaganza, Moorpark Arts Festival. B. "Special Event" shall mean an event that meets the following criteria: 1) benefits a large segment of the community; 2) appeals to a specific demographic or population; 3) is typically offered by a public agency. Examples: Easter Egg Hunt, Trick or Treat Village, Teen events. C. "Other Event" shall mean all other events that do not fall into Community or Special event categories. Example: Visits from Santa. D. "Day Camp" shall mean a general camp program for youth that does not focus on a specific activity type or topic. Examples: Camp Moorpark, Adventure Camp. E. "Recreation Classes and Specialty Camps" shall mean any class, workshop, or specialty camp that focuses on a specific activity type or topic and is instructional or developmental in nature. Examples: Beginning Ballet, Lego Engineering Camp, Tot Sports classes, Yoga. F. "Adult Sports Program" shall mean an intra-community sports program which is offered for individuals ages 18 and older, is recreational in nature, and is open to a variety of playing abilities. Examples: Adult softball league, soccer league. 298 G. "Youth Sports Program" shall mean an intra-community sports program which is offered for individuals ages 17 and younger, is recreational in nature, and is open to all playing abilities. Example: Youth Basketball League. H. "Tournaments and Competitions" shall mean an activity that offers a higher level of competition than typical recreation level programs. Sports tournaments, extreme challenge events, and timed bicycle or running events are included under this definition. Example: Softball tournament sponsored by the City. "Vital Services" shall be defined as services or activities that are essential to the health and well-being of the individual or community, are typically offered by a public agency, and are not generally available to the public through other sources. Example: Women's assault prevention clinic. J. "Special Interest Groups" shall be defined as social gatherings that do not have a paid instructor or supervisor at which the group will: 1. Discuss topics of interest; 2. Provide emotional or social support to group members; or 3. Work together on or participate in a common activity. Example: Book club. 5. Definition of Recovery Levels Program Categories will be placed into recovery levels establishing the percentage of required minimum and target cost recovery the program. Levels are defined as follows: A. Level One: Programs that are of a benefit to the whole community or are essential to the health and well-being of a target segment of the community, are typically provided by public agencies and not typically available through other providers, and require minimal commitment from participants (minimal time or financial investment is required, performance of program would not be altered by the absence of a single participant, and/or advance registration is not required.) B. Level Two: Programs that provide a benefit to a targeted segment of the community, are often offered by public agencies, are limited in availability from other providers, and require minimal commitment from participants. C. Level Three: Programs that provide both a community and individual benefit, are often offered by public agencies and may be available through other providers; and require some level of commitment from participants. 299 D. Level Four: Programs that have a greater individual than community benefit, may be offered by public agencies or private businesses or other providers, are instructional or recreational in nature, and require a strong commitment from the participant (substantial time or financial investment is required, performance of program may be altered by the absence of a participant, and/or advance registration is required.) E. Level Five: Programs that provide primarily an individual benefit and are specialized or competitive in nature. 6. Cost Recovery Matrix In accordance with the Cost Recovery Levels, the following matrix has been developed. The minimum recovery indicates the percentage of costs that must be recovered in order to continue offering the program without modification. The target recovery indicates the percentage of costs that staff will attempt to recover through program fees and other revenue sources. Direct Costs Division Indirect Costs Other Indirect Costs Minimum Target Minimum Target Minimum Target Programs and Levels Recovery Recovery Recovery Recovery Recovery Recovery Level One: Includes: Community Events (A) 25% 100% 0% 25% 0% 0% Vital Sennces (I) Level Two: Includes: Special Events (B) 50% 100% 0% 50% 0% 0% Special Interest Groups (J) Level Three: Includes: Day Camps (D) 100% 100% 50% 75% 0% 0% Youth Sports Programs (G) Level Four: Includes: Recreation Classes and Specialty Camps (E) 100% 100% 75% 100% 0% 25% Adult Sports Programs (F) Level Five: Includes: Other Events (C ) 100% 100% 100% 100% 50% 100% Tournaments and Competitions (H) 7. Cost Recovery Implementation and Management Division staff will establish, and the Department Director will approve, strategies for achieving cost recovery goals. Strategies will be implemented based on the best interests of maintaining a strong program and reaching the designated recovery goals within a period not to exceed one year. The process for cost recovery shall be as follows: • 300 A. Each recreation program or service will be assigned to the appropriate Program Category, establishing the recovery level for the program. B. Staff will determine appropriate revenue source(s) for the program and establish user fees, sponsorships/donations, vendor fees, and/or grant amounts necessary to meet minimum cost recovery. C. Programs will be reviewed annually to determine if they are meeting the minimum cost recovery percentage. D. Programs that are unable to meet the minimum cost recovery will be reviewed by the Department Director for consideration of appropriate action, including restructuring or eliminating the program. E. Programs that meet minimum cost recovery and do not exceed target recovery will not require action. F. Programs that exceed target cost recovery will be reviewed to determine whether or not fees should be decreased, the program should be placed in a different Program Category or Recovery Level, or other action is needed. G. An annual report will be presented to the Parks and Recreation Commission by October 31 and to the City Council by December 31 each year summarizing the programs offered during the prior fiscal year and whether cost recovery goals for each program were met. 8. Right of Exclusion The City Manager is authorized to exclude individual programs from the Cost Recovery Policy. Said programs shall be budgeted as approved by the City Council. 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