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HomeMy WebLinkAbout6.1 Amendments to Fee ResoAGENDA STATEMENT HERITAGE AND CULTURAL ARTS COMMISSION MEETING DATE: September 8, 2011 SUBJECT: ATTACHMENTS: RECOMMENDATION: FINANCIAL STATEMENT: PUBLIC HEARING: Amendments to Fee Resolution Report by John Hartnett, Heritage & Cultural Arts Manager and Elizabeth Isles, Heritage Park & Museums Director 1. Parks and Community Services Pricing Policy 2. Saturday Events 3. Resolution Adopting a Fee Schedule for Heritage and Cultural Arts Programs and Services 1. Receive Staff Presentation - 2. Open Public Hearing 3. Receive Public Testimony 4. Close Public Hearing and Deliberate 5. Adopt Resolution or Provide Alternate Recommendation None DESCRIPTION: On September 21, 2010 the City Council adopted the Parks and Community Services Pricing Policy to increase cost recovery for services generally provided to specific populations: This Pricing Policy provides guidance for annual adjustments to service fees. It identifies what services should recover 100% of the total cost (direct and indirect costs) of providing a service, and objective criteria for pricing services at lower levels. Attachment 1 is the adopted Pricing Policy. Staff has utilized the new Pricing Policy to ensure fees are set so that cost recovery targets are met. Non-resident fees for cultural arts classes are now set at 20% higher than resident fees. In May 2006, the Dublin City Council adopted a Resolution establishing a policy for the development of Heritage and Cultural Arts Program Fees and Charges. This Resolution also authorizes the Parks and Community Services Director, with the approval of the Heritage- and Cultural Arts Commission, to set fees for heritage and cultural arts programs and services. By implementing the Resolution, Staff is allowed the flexibility to adjust heritage and cultural arts fees as needed and, in addition, to establish fees for new programs and services in a timely manner. Fees for the Heritage and Cultural Arts Division were last reviewed in August 2010. COPIES TO: ITEM NO.: 6.1 G:\HERITAGE COMMISSIONWGENDA_STMTS\2011\9-8-Fee Resolution Report.doc The Heritage and Cultural Arts Division develops many programs in which registration and reservation fees will typically at least cover direct program costs. Staff periodically undertakes a review of the expenditures and revenues related to various Division programs and institutes fee adjustments as necessary. Staff also reviews the fees charged by other local agencies to determine if the proposed fees are comparable to the market average. The Division budget for Fiscal Year 2011-2012 is $782,590. This budget funds the Heritage and Cultural Arts Manager, the Heritage Center Director, the Special Events Coordinator, 25% of the Parks and Community Services Director and the Heritage and Cultural Arts Commission, as well as the programs, activities and facilities associated with heritage and cultural arts. Changes from the last fee adjustments of August 2010 include: • Replace eight "Monthly Workshops" with a series of new Saturday Events. • Tour additions -Tractor/Wagon Rides and Barn Activities. In all, it is anticipated that $278,540 in revenue will be generated through program and class fees, facility rentals, burial fees and special event fees; thus, the net cost for Fiscal Year 2011-2012 for the Heritage and Cultural Arts Division is $504,050. Following are the fees that are proposed for Fiscal Year 2011-2012: Heritage Park & Museums Tours The tours program fulfills a fundamental purpose of the Heritage and Cultural Arts Division and continues to bring in scores of visitors from schools and various groups. Admission to the museums continues to be free during regular museum hours; Wednesday through Sunday from 1:00 pm to 4:00 pm and Tuesdays 6:00 pm to 9:00 pm. Group tours are available by appointment during regular hours or by arrangement. Group tours require a reservation often or more individuals. Because of the expansion of the Heritage Park and the addition of new Kolb buildings, fees were increased last year to $3.50 per person for school groups "within" the City of Dublin and $5.00 for school groups "outside" the City of Dublin. Fees were also increased to $3.50 for non-profit groups and $5.00 per person for commercial .groups. Since the Heritage Park & Museums opening was delayed until July of this year, Staff is recommending that the current fees be maintained through Fiscal Year 2011-2012. Additionally, because of the delayed opening, Staff recommends that the "Tea & Tour" and "Lemonade & Tour" program be maintained at $15.00 per person. Tour Additions: Tractor/Wagon Rides -Staff proposes that visitors to the Dublin Heritage Park & Museums may arrange to take rides around the' grounds on the Kolb Tractor and Studebaker Wagon for a charge of $1.50 per person for tours. The scheduling of rides would be contingent upon the availability of trained volunteers, known as the "Tractor Guys." The $1.50 charge would be added to school tours, by request. The tractor route is around the Heritage Park and through the Pioneer Cemetery. Barn Activities Students and groups may arrange to add "Barn Activities" to their visit as an added enrichment to the existing school tour program. Barn activities involve separating the boys and girls and offering activities that allow the students to experience 19~' century life. Girls will join in a "Quilting Bee" where they will handle a vintage quilt (part of the "Education Collection", not the artifact collection). ~ The facilitator will teach the girls about the importance of community bees (spelling bees, barn raising bees, and quilting bees) for social interaction and to accomplish a task. The boys will experience what 19`t' century men did during their leisure time including checkers and tying knots. 2 of 4 Afterwazds, both will join in a barn dance where they will learn about etiquette and a few dance steps. The add-on for Barn Activities is $1.50 per person. Saturday Events For the past few years, the Heritage Center Workshops were held eight times each fiscal year, from July through June, on the first Saturday of the month. The fee for the workshops was $5.00 per youth participant. Staff felt that because of the expansion of the Heritage Park & Museums, the workshops should be replaced with more events geazed towazds the whole family, with a few of the activities on a grander scale to take advantage of the new pazk and additional facilities. Staff has developed a series of varied programs that will be offered once a month on a given Saturday (Attachment 2). All of the events will have a fee of $5.00 per participant (youth or adult) with the exception of the two children's variety shows which will cost $5.00 per youth participant. Additionally, the "Love Letters" production in February 2012 will be priced at the current theatre event fee approved last year. Holiday Tea The Holiday Tea program provides an opportunity for participants to enjoy the holiday season at a leisurely afternoon tea complimented by delicious finger foods and music on the first Saturday. of December. Staff proposes to maintain the $25 fee for the program. Additionally, Staff recommends that the special price of $30 for adults who register for both the Holiday Tea and the Bay Bells Concert be discontinued, due to a lack of interest. Winter Concerts _ At this time there are no fee increases proposed for the Winter Concerts. The City will be offering two Winter Concerts this year during the months of November and December. The Hometown Heroes event will be held on Sunday, November _6 and the Bay Bells will be performing in concert on Sunday, December 11. There is no charge for the Hometown Heroes Concert and the fee for Bay Bells is $8 for adult, $5 for youth 6-12 years and $3 for youth five and under. Oral History Private Interviews Staff proposes to maintain the current fee for the Oral History program, offering private, one-hour interviews and CD recordings for a cost of $25. Additionally, a typed "transcript" of the recording can be made available at a cost of $75. Theatre Events A theatre production of "Love Letters" is budgeted for this fiscal year as part of the Saturday Events program. The two-week production will be held at the Kolb Barn which will seat approximately 100 attendees and provide an intimate atmosphere much like a Black Box Theatre. It was recommended and approved last year that a fee of $12 for adults, $7 for youth 6-12 years and $5 for youth five and under be charged for theatre productions of one-hour or less (example: One-Act Play). This will apply to the "Love Letters" production, due to its one-hour length. Additional Programs -No Charge Some programs offered by the Heritage and Cultural Arts Division are offered free to the public as a way to develop a sense of pride in the community. These programs can be either educational or entertaining in nature, and include the Family Movie Nights and the Heritage Park & Museums Exhibits. It should be noted that in the event fees become an issue for a Dublin family, the City does offer the Youth Fee Assistance program for those in need. 3 of 4 RECOMMENDATION: Staff recommends that the Heritage and Cultural Arts Commission receive the Staff presentation, open the Public Hearing,Fee S hedu ellfor Heritage andsCulturaluArts Hearing, deliberate and adopt the Resolution Adopting a Programs (Attachment 3). 4 of 4 CITY OF DUBLIN PART<S c~ COMMUNITY SERVICES PRICING POLICY The City of Dublin promotes and supports a high quality of life which ensures a safe and secure environment that fosters new opportunities. ATTACHMENT 1 an of DUBLIN ACKNOWLEDGMENTS Ctty Caunci! Tim Sbranti, Mayor Kasie Hildenbrand, Vice Mayor Don Biddle Kevin Hart Kate Ann Scholz Parks and Communit~,~ Services Commission Steve Jones, Chairperson Rich Guarienti, Vice Chairperson Alan Elias Angela Muetterties Anthony Tota ro Matthew Reinemann, Student Commissioner Parl-s and Community Services Heritage and Cultural Arts Commission Steve Minniear, Chairperson Sonal Nuckols, Vice Chairperson Anita Carr Kim Halket Connie Mack Dayna Tutino Georgean Vonheeder Leopold City of Dublin Executive Staff Joni Pattillo, City Manager Chris Foss, Assistant City Manager Department f~Ianagement Staff Diane Lowart, Parks and Community Services Director Paul McCreary, Assistant Director of Parks and Community Services Herma Lichtenstein, Parks and Facilities Development Manager John Hartnett, Heritage and Cultural Arts Manager Policy Written Uy Paul McCreary, Assistant Director of Parks and Community Services Based on policies established by the cities of Davis, Mountain View, San Luis Obispo artd Sart Mateo can of DUBLIN T~b~e of Contents Parks and Community Services Pricing OVERVIEW ......................................................................................................................... 2 Purpose of the Policy .............................................................................................................. 3 Summary of Cost Recovery and Pricing Model ...................................................................... 3 DETERMINING PROGRAM COSTS ....................................................................................... 5 Direct and Indirect Program Costs .......................................................................................... 5 Direct Service Costs ............................................................................................................. 5 Indirect Program Coordination Costs .................................................................................. 5 Indirect Department Administrative Costs ......................................................................... 5 Indirect Facility Overhead Costs ......................................................................................... 5 Allocating Indirect Costs ....................................................................................................... 5 SETTING COST RECOVERY TARGETS ................................................................................... 8 Calculating Cost Recovery Rate .............................................................................................. 8 Prioritizing Service Values ....................................................................................................... 8 Priority 1-Core/Essential Services ...................................................................................... 8 Priority 2 -Important Services .....................................................:....................................... 9 Priority 3 -Discretionary Services ....................................................................................... 9 SETTING PRICES ............................................................................................................... 10 Establishing Proposed Prices ................................................................................................10 Non-Resident Rates ..............................................................................................................10 Discounts and Variable Pricing .............................................................................................11 Guidelines for Changing Prices .............................................................................................12 Page ~1 cin or DUBLIN Parks and Community Services Pricing Parks & Community Services Pricing Policy OVERVIEW Due to the economic recession the City has experienced a significant decrease in revenues from property tax, sales tax and interest earnings, as well as takeaways by the State of California. In the past these revenues allowed the City absorb most of the indirect costs of providing recreational services. However it has been estimated the City will face multi-million dollar deficits for several years. The City Council has already approved millions in prudent budget reductions to bridge the gap, and if revenues do not increase significantly the City's General Fund-supported services may be subject to greater reductions. In order to have the least impact on services and achieve a structurally balanced budget one strategy is to develop a Pricing Policy to increase cost recovery for services generally provided to specific populations. This Pricing Policy will provide guidance for annual adjustments to service fees. It will identify what services should recover 100% of the total cost (direct and indirect costs) of providing a service, and objective criteria for pricing services at lower levels. If a user-fee activity is not completely cost recovered, a General Fund operating subsidy is necessary. There are reasons for subsidies, such as activities that provide a greater community benefit. The level of cost recovery should consider the community-wide versus special service nature of the program or activity. The use of General Fund revenues is appropriate for community-wide services, while user fees are appropriate for services that are of special benefit to easily identified individuals or groups. Additional reasons to subsidize services include the desire of the City to target a specific population or activity, as well as for promotion and marketing benefits. Establishing a Pricing Policy will allow the City of Dublin to continue to provide high-quality programs in a financially sustainable manner. It will maximize the benefits of programs to the greatest number of Dublin residents, and focus on initiatives or populations of priority to the City. The policy will continue to value preferential access and fee discounts to Dublin residents. Page IZ ~i can or DUBLIN Parks and Community Services Pricing Policy RurPose of the PaEicy The Parks and Community Services Strategic Plan identified a strategic goal (#4f) to develop a pricing policy. This will establish cost recovery levels and goals for programs and accomplish the following: • Formalize the structure for calculating fees • Establish cost recovery levels with a clearer connection between core service values, the population served and the level of community benefit • Promote the best investment of General Fund resources • Provide a system for tracking the financial performance and identifying programs not generating the designated minimum cost recovery Summary of Cost Recovery and Pricing Model The Pricing Policy is based on best practices used by other municipalities and recommendations from continuing education experts on program pricing. The Policy establishes guidance for Staff to have the flexibility to adjust fees to maximize revenue and differentiate pricing in response to fluctuations in the market or demand. It will also provide the ability to package programs and provide discounts to increase participation and/or promote new programs. The Policy is based on the "Parks and Community Services Cost Recovery and Pricing Model" depicted in Figure 1 below. FIGURE 1 -PARKS AND COMMUNITY SERVICES COST RECOVERY AND PRICING MODEL DETERMINE MODIFICATIONS• Reduce Coats • Reduce RecoveryTarget Eiimfiate Program Fee too high? DETERMINE: ..Costs Service Values Market Conditions Demand Genera! Fund Capacity SET COST RECOVERY ..TARGETS SET..: PRICING IMPLEMENT PRICING Successful? EVALUATE IF: Cost Can Be Reduced Recovery Can Be increased Page ~3 c~rv of DUBLIN Parks and Community Services Pricing Policy In recognition of the wide variety of service values and revenue generating potential of various activities, Staff will assign each activity to one of three "service priority groups" based upon an assessment of service and cost recovery values. Specific cost recovery thresholds will be established for each service priority „ ,~ group and include both minimum and target levels of cost recovery. Priority 1 activities will provide the greatest community-wide benefit and will have lower cost recovery targets than "Priority 3" activities which provide more of an individual or small group benefit, and therefore will have higher cost recovery thresholds. Cost recovery for activities directed to adults should be relatively high. While cost recovery for youth and senior activities should be relatively low. In those circumstances where services are similar to those provided in the private sector, cost recovery levels should be higher. Activities within each priority group will be reviewed and where appropriate may include specific considerations that may supersede the cost recovery thresholds identified for the group. Considerations could include market rates and demand, benchmarking to a specific competitor, the availability of alternative providers, or collection of fees is not cost effective. Both the Heritage and Cultural Arts Commission and the Parks and Community Services Commission annually adopt a Master Fee Resolutions for programs. Following the adoption of the new Pricing Policy the Commissions will still adopt annual Fee Resolutions. However, the Resolutions will provide Staff with the authority to adjust program fees during the fiscal year; except that no fee increase may exceed 10% without'the approval of the appropriate Commission. Additionally as part of the annual fee adoption process, the Commissions will review the performance of each activity compared to the Pricing Policy and make recommendations for adjustments to the Pricing Policy as deemed appropriate. The City Council must approve any future changes to the adopted Pricing Policy. Following the adoption of the Pricing Policy, strategies for achieving the target cost recovery rate will be established by Staff for each program area. These strategies may include immediate or gradual action depending upon the best interests of maintaining a strong program, achieving the target within a reasonable time period and current market conditions. Activities that do not meet the minimum cost recovery threshold will be reviewed by Staff to determine whether it is feasible to reduce costs or if the cost recovery target can be adjusted. Otherwise Staff will recommend eliminating the activity. For activities that exceed the cost recovery thresholds, Staff will determine the feasibility of increasing the cost recovery target. Page ~4 Cin of DUBLIN Parks and Community Services Pricing Policy DETERMINING PROGRAM COSTS Direct and indirect F~ragrai~ Casts Direct costs by nature are usually easy to identify and relate to a specific service. However this is not the case for indirect costs. This policy will help to determine the total cost of providing a specific service by developing a system for allocating indirect costs to direct cost programs. Direct costs are those solely associated with a particular service, such as After School Recreation, Swim Lessons, Adult Basketball Leagues, or the First Saturday events at the Heritage Center. Indirect costs are not identified with one particular service and are typically incurred for a joint purpose that benefits more than one service within the Department. The total cost of a service is the sum of the following direct and indirect costs. Direct Service Costs • The fixed and variable costs necessary to operate a specific program • Includes.seasonol part time staff, supplies, equipment, and contracted services Indirect Program Coordination Costs The fixed resources for the service area (i.e. Sports, Family Services, Preschool, Teens, Heritage and Cultural Arts, etc.) that do not vary with program participation Includes permanent staffing for customer service; program oversight by Coordinators, Supervisors, and Managers; and, other overhead supplies and services Indirect Department Administrative Costs • The share of the Department's executive management support • This includes permanent staffing, technology, printing, advertising, internal service funds, credit card processing, etc. Indirect Facilit~l Overhead Costs • The day-to-day costs to keep the facility open and provide facility supervision, as well as on- going maintenance, repairs and equipment replacement. • Includes facility attendants, supplies, utilities, contracted services, and repairs and maintenance Allocating Indirect Costs Allocating indirect costs requires creating indirect cost rates or overhead rates for each of the cost areas identified above. The indirect cost rate is simply the ratio between indirect and direct costs. By applying the overall indirect cost rate to any specific direct cost program, the total cost of the program can be determined. Following is ari example using the Preschool Program. Page ~5 ~` 1 cin of DUBLIN Parks and Community Services Pricing TABLE 1- FY 2010-2011 INDIRECT OVERHEAD RATE FOR PRESCHOOL COORDIIVATION Direct Preschool Service Costs (A) ............................. $220,318 Indirect Preschool Service Costs (B) ............................. $93,572 Indirect Preschool Overhead Rate (= B / A) .............0.424716 Dividing the indirect service costs by the direct service costs calculates the indirect overhead rate for the preschool division of the Department. In essence for every dollar of direct expenditures there is an additional $0.42 in cost for indirect preschool program coordination. In addition to the indirect program coordination costs, there are indirect department administration costs. For Fiscal Year 2010-2011 the indirect department overhead rate is 0.182916 of a program's total direct and indirect costs. Using the example above for preschool: TABLE 2 - FY 2010-2011 DEPARTMENT ADMIlVISTRATIVE OVERHEAD RATE FOR PRESCHOOL Total Preschool Program Costs (A) ............................ $313,890 Indirect Department Admin Rate (B) ......................... 0.182916 Indirect Department Admin Costs (= A x B) ...............$57,416 Allocating indirect costs via an indirect cost rate assumes that all indirect costs are incurred proportionately to the direct cost of the program. However, this may not be a reasonable assumption in all cases, as the benefit received from certain types of support services may be more closely related to an indicator other than cost, such as program length or percentage of square feet of dedicated space. The Pricing Policy allocates indirect facility overhead costs based on an hourly rate per square foot of use for rooms used by multiple programs, or based on a per square foot cost for spaces dedicated to one program, such as the preschool space in Shannon and the Emerald Glen Activity Center. Following shows the calculation for the Facility Overhead Costs for preschool. TABLE 3 - FY 2010-2011 FACILITY OPERATIONS OVERHEAD COSTS Activity Center Direct/Indirect Costs (A) ......................................................$39,250 Percent of Square Feet for Preschool (B) .........................................................100 Activity Center Facility Overhead Cost for Preschool (A x 8 = CJ ..................$39,250 Shannon Center Direct/Indirect Costs (D) .................................................$349,758 Percent of Square Feet for Preschool (E) ...........................................................26% Shannon Center Facility Overhead Cost for Preschool (D x E = FJ ................ $91,230 Total Preschool Facility Overhead Costs (= C + F) .................................. $130,480 Since the Preschool has exclusive use of these facilities 100% of these overhead costs are assigned to the preschool program. If multiple programs were using a room, then an hourly overhead rate would be assigned instead. The hourly overhead rate would be calculated by dividing the total overhead costs for a room by the annual usable hours for the facility (i.e. daily from 8:00 a.m. to 10:00 p.m.). Nage io CITY Of DUBLIN Parks and Community Services Pricing Policy Based on the above example the following is a summary of the total cost of the preschool program for Fiscal Year 2010-2011: TABLE 4 - FY 2010-2011 TOTAL PRESCHOOL PROGRAM COSTS Direct Preschool Program Costs ................................ $220,318 Indirect Preschool Coordination Costs ........................ $93,572 Indirect Department Administrative Costs .................. $57,416 Facility Overhead Costs .............................................. $130,483 Total Preschool Program Costs ...............................$501,789 This policy recognizes the principle that the cost of developing the information necessary to perform the cost allocations should not exceed the benefits likely to be gained. Calculating hourly facility overhead rates and the annual indirect cost rates is relatively easy using the EDEN finance and enterprise resource planning (ERP) system and the CLASS facility booking system. In a true cost accounting system, indirect costs would be calculated and allocated on an ongoing basis throughout the fiscal year based on actual costs. However frequent updating in a municipality would not serve any specific purpose such as price control in a manufacturing company, and would consume significant staffing resources. Therefore the indirect cost rates will be prepared annually as part of the budget preparation process. Page ~7 CITY OF DUBLIN Parks and Community Services Pricing Polity SETTING COST RECOVERY TARGETS Calculating C©st Recovery Rate Once the total cost of a program has been identified there needs to be a method to determine the desired level of cost recovery for each activity. To calculate the cost recovery rate, divide the revenue collected for a service by the total cost of providing the service (including direct, indirect and facility overhead costs). The following is an example using the preschool again. TABLE 5 - FY 2010-2011 PRESCHOOL PROGRAM COST RECOVERY RATE Total Preschool Revenue (A) ...................................... $403,530 Total Preschool Program Costs (B) ............................. $501,789 Cost Recovery Rate (= A / B) ...........................................80% The cost recovery rate determines how much a program must generate in revenue (user fees, sponsorships, grants, etc.) and how much subsidy will be needed from the General Fund. Prioritizing service Values In order to maximize available General Fund resources to the greatest number of residents, the prioritization of subsidies is based on the: • Type of service • Target population • Level of community benefit and participation • Availability of alternative providers These criteria will be used by Staff to assign each Department service to one of three priority groups. These categories are used to set the minimum cost recovery rate and the targeted cost recovery rate for each activity. The following describes in more detail the criteria Staff will use to categorize services into the three priority levels. Priority 1 -Core/Essential Services Minimum Cost Recovery Rate: 0% Priority 1 services have the lowest level of cost recovery and include activities that provide larger community benefit and can b~ accessed by the broadest cross section of the population. The public expects the City to provide these services and they are usually not provided by others. These services may be provided to a targeted population and/or be essential to the health, safety or livability of the community. Residents would consider these program subsidies a sound investment of public funds. Programs that may fit this category include recreational swimming ,Heritage Center tours or picnic area rentals. Page ~8 CITY OF DUBLIN Priority 2 -Important Services Minimum Cost Recovery Rate: 30% Parks and Community Services Pricing Priority 2 services have mid-range cost recovery targets and include activities that provide some community benefit as well as individual or group benefit, and serve a significant number of residents. These programs service the needs of youth or seniors. The services may expand or enhance health and safety, or contribute to economic and community vitality. Although there may be other providers of these services, they can't provide residents with the same level of accessibility, efficiency or effectiveness as the City's services. Important services may include after school programs, preschool classes, swimming lessons, or the St. Patrick's Day Celebration. Priority 3 -Discretionary Services Minimum Cost Recovery Rate: 60% Priority 3 services are discretionary and have the highest level of cost recovery targets.. These activities serve a moderate number of residents, providing benefit to the individual or group, and minimal benefit to the greater community. They are typically specialized, and may be provided by the private sector or other agencies with the same level of accessibility, efficiency and effectiveness as the City's programs. These services are nice to have when additional funding is available. The public may not typically expect the City to provide these services, which may provide value beyond what is expected of the City. Examples of Priority 3 services include contracted specialty classes and camps, letters from Santa, concert series or adult sports leagues. Page ~9 CITY OF DUBLIN Parks and Community Services Pricing Policy SETTING PRICES Estabiishing Proposed Friees With the total costs identified and each activity categorized into a service priority group, Staff can then set the price for each activity. As noted each priority group has a minimum cost recovery rate and a targeted cost recovery rate. When setting the price to be within the cost recovery range identified for the priority level of the service, Staff will need to evaluate the market rates and demand for the activity to determine the feasibility of the proposed price. If the price is too high compared to the market and there is little demand forthe program, Staff will need to take one or more ofthe following actions: • Evaluate the feasibility of reducing costs • Provide a justification to the Department Administration for reducing the fee • Propose elimination of the activity the Department Administration If applying the Pricing Policy to an existing program will result in a significant fee increase in one year, Staff could also consider implementing the fee increase over a two or three year period. When conducting the market analysis, if the target price is below the market average Staff should consider increasing the price to improve cost recovery, yet still remain competitive. If an activity has high demand Staff should also determine if the market will bear a fee increase to improve cost recovery. Annually, Staff will present the proposed pricing to the Heritage and Cultural Arts Commission and Parks and Community Services Commission for approval. During the year the Parks and Community Services Director can set and adjust fees as long as cost-recovery ranges and target rates are maintained. This will allow for Staff to respond to fluctuations in the market and demand, and provide the flexibility to package programs to increase participation and/or promote new programs. Any mid-year fee increase exceeding 10.0 percent will require the approval of the Parks and Community Services Commission. E~fan-Resident Rates Historically fees charged for non-residents compared to Dublin residents have been 15% more for programs, and 20% for facility rentals. Under the new Pricing Policy fees for non-resident programs will increase from 15% to 20% to be consistent with facility rentals. The Parks and Community Services Director is authorized to reduce or eliminate non-resident fee differentials when it can be demonstrated that: • The fee is reducing attendance and there are no appreciable expenditure savings from the reduced attendance. It may be impractical or too costly to establish a system to identify and charge non-resident users. For example, checking residency status for drop-in activities that do not require pre-registration, such as Recreational Swimming, is impractical. Page ~ 10 cin or DUBLIN Parks and Community Services Pricing Policy Following adoption of the Pricing Policy, Staff will update the City's promotional materials to re-package how these fee differentials are presented. Rather than being a "non-resident surcharge" the differential will be featured as a "resident discount". This is a more positive way of marketing the concept. E~iscotants and Variable Pricing The Learning Resources Network (LERN) is an international association of people who coordinate lifelong learning classes and recreation programs. The organization has over 40 years of research on best practices, and in particular has a wealth of knowledge regarding pricing and marketing. Staff has reviewed information and training materials from LERN and has developed the variable pricing component of this policy based on the best practices recommended by LERN. As noted there will be situations when it is desirable to adjust the approved fee for a program. The Parks and Community Services Director is authorized to offer reduced fees such as introductory rates, family __._ discounts and coupon discounts, or non prime-time pricing on a pilot basis (not to exceed 18 months) to promote new recreation programs or resurrect existing ones. Other potential pricing strategies could include early registration discounts, in which the current price would be the early price, and the fee for regular registration would be higher. Package discounts would lower the fee for customers that register for a group of classes. It can be shown that targeted, short-term discounts, for certain programs may be effective at garnering more participation. However Staff should be cautious about lowering prices permanently or across the board as a way to increase registration. In a recession enrollments drop, but those who still register are probably willing to pay the same or even higher prices because they need the class or service. Thus there can be less risk in boosting prices than in lowering them. For example there is an activity with a registration fee of $95 and 25 participants, and at that participation level the City nets $950 after paying direct expenses. If the fee were lowered to $75 there would need to be seven (28%) more registrations for the City to net the same amount. Alternatively if the price was raised to $125 then registrations could drop by six (24%) and still have the same level of income and profitability. Table 6 outlines this concept. TABLE 6 -COMPARISON OF PROFITABILITYAT LOWER AND HIGHER PRICING CURRENT LOWER HIGHER PRICE PRICE PRICE Registration Fee $95 $75 $125 Number of Registrations 25 32 19 Revenue Collected $2,375 $2,400 $2,375 Contract Payment (60% of revenue) $1,425 $1,440 $1,425 Net to City $950 $960 $950 Page ~ 11 Cin of DUBLIN Parks and Community Services Pricing Policy Staff will be required to review the financial feasibility of variable pricing strategies before being approved by the Parks and Community Services Director. Guidelines far CC~angirtg ~Priees LERN has done extensive research on consumer response to pricing strategies. They have determined psychological price breaks for community classes and programs. These are the points at which if the City raises the fee beyond a price point, registration will decrease by an amount more than proportional to the price increase. Basically the market grows accustomed to paying a certain amount for a certain type of program. Additionally the perception of the price affects the price point. For example raising a price above $0.99 will cause demand to fall because people perceive $1.00 as a significantly higher price. This is sometimes referred to as "odd-number" pricing. According to LERN pricing points for community education and recreation are as follows: $20 $75 $400: ~, .hLx zy cZ g3~x ~4~~' rkr~2~~~~a ,~ ~K~`* ~~.~. .:_~. ,x,,, ~~'.$g~~ ~x t 1.~,... $500 ~.,~_~ ~, - ~ ~~zA $30 $100 $1,000. -- --$50 $200 When raising fees Staff should consider where the existing fee is in relation to the price breaks and try to stay under the price break if possible. Additionally LERN recommends trying to change only one digit of the price and making it end in a "5" or "9". For example if the price of an existing activity is $50, Staff could lower the fee to $49 to stay under the price break, end the price in a "9"and only change one digit. Alternatively, Staff could raise the price to $55 or $59 and meet the guidelines recommended by LERN. Page ~ 12 . - A;T ~~I~AG~ P~~R:K ~r ~U.S~~U`M.:S ._ ~~ 6600 Donlon-Way: Dabhn sponsored by - (925) q52 2101 _ ~ .._ -, DUBLIN Dublin PoetrySlam_ Saturday, September 10, 2011 6 00 - 8:OOpm Calling All Poets Calling All Slammers~ Calling All Poetic Styles! The Poetry Battle has hit the Dublin area and we need you! Come join us for our first Poetry Slam hosted by Dublin's very own Poet Laureate; Donnie Mdoy-Howell. Bring .out your best (family friendly) poems and enJoy ao excifing atmosphere among other poets. Entry fee at the door includes refreshments. Please contact Donnie at _ _ (925) 452 2105 or email poet iaureate(~dublin.ca.gov for more information. Admission: $S per person I~arvest'Gathering - Sa~u~daJi~ October 22, 2011 ' _ Festnral 3;b0 8 OOpm_ _: ; __ _ e e_ ival m-ctu~escraft-making workshops; a petting zoo, wagon rides and storytelhpg in an alluring 19th-ientury setting: Learn-~ ~ - aboutDublin's history_as you ride on a tractor-drawn wagon through the Pioneer Cemetery. Visit a petting zoo and learn about Dublin's ranching past. The Hay Barn will have all the supplies you heed to make a scarecrow to take home. A storyteller will tell not-so-spooky-stories inside Old St. Raymond Church. Ysit the_Kolb Historic House Museum and the Murray Schoolhouse Museum to 1-- ~ _ experience Dublin's past. Bring your appetite and enjoy hotdogs, caramel apples, kettle coin and fresh rider and other harvest goodies. Admission is FREE;, •, $S wristband for all festival activities Harvest Moon Barn Dance; 7:00 - 9:OOpm Come dance under twinkling lights, shining stars and an amber'harvest moon' in the 1870 Sunday School Barn. The Dublin Bluegrass Jam Band will provide toe-tapping music for everyone. Chairs will be available for those who would like to watch the musicians, chat and relax too. Arrive early and have dinner at the festival. Barn Dante: $S per person Goldilocks &The-Three Bears Puppet-Show _,~3~ Saturday, November 19, 2011 1:00. 1:30pm ,~ ,. A delightful produdi n, of a classical tale with some modem Twists and adventures. This show is perfect for children ages 6-10 years, . .~. - -- and' parents w II also~enjoy the fun escapades of the three bears as they try fo figure out what: or who has broken into their house.. A fun, fast-paced show of 30 mmutes'with lots of interaction with the. audience. This show is guaranteed to keep all the kids in the _..~ _ , audience on the edge of their seats; Admission: $S Youth; Ac[ipity#17470 - _ .. ._ Holiday Tea ': _ _ ~. Saturday, December 3, 2011 1:00 3:OOpm Treat yourself to a luxurious sit down tea in the historic Murray Schoolhouse ,Gourmet sandwicf~es, dehaou§ desserts and pots of tea aresenred by friendly volunteers m the historic Murray Schoolhouse "Little Classroom:" Reservations required. ~~ - -- _ Admission: S2S per person;- Act-vity #17506 Holiday Winter Market ,- Saturday, December 3, 2011 2 00 6 OOpm Make speaal holiday memories m Dublin's beautiful historic setting with an array of heartwarming actiwties for the whole family. .:r _ ._ Old St;~Vdc~rdl amve in` a tractor-pulled wagon and be avairable for children to visit and take photos in the Art Studio. Create old fashioned gaftsto give as gifts or to decorate your home. Experience atractor=drawn wagon ride through the historic Pioneer Cemetery Listen to costumed carolers as you enJoy hot cider and cookies in the 1859 OId St. Raymond Church. Docents will be on hand. . as you tour the 1.910 Kolb Historic House Museum and the 1856 Murray Schoolhouse Museum. Admission is FREE; $5 wristband for all festival activities _ ATTACHMENT 2 -_ Celebrating African American Poetry ~a~r~;1`a't`Cary 14, 2012....- , 2'00 4 OOpifi ~ -_ . - = `-: - -- Take astroll down memYory lane to the Civil Rights Era of Poetry. We will present styles of Poetryfrom the earl~i 1940s to 1970, and ,. _ - discuss how Poetryim~acted a nation Special Guest Poets, Folk and Storytellers will, dehve~ a memorable performance that you _> - We will have an Open Mic following the event, so bring your poems to shape Entry fee at tiie door which, includes wont want to miss refreshments Wease contact Jonnie Mdoy-Howell, the Gty's_ Poet Laureate, at (925) 452 2105 or email poet iaureateiadubhn :ca god for more detailed, information. Admission: SS per person k ~ : _, -:T .-, .. . . ,: Love Letters= Valentines Production Friday to Sunday, February 3 to S & 10 to 12 Friday & Saturday, 8:OOpm_ Sunday 2:OOpm - Share your Valentines Day with someone special by attending the first theatrical produrtion iii the new Kolb Barn Theatre! Tri-Valley .... Performers will be presenting Love Letters by A. R. Gurney, for two consecutive weekends. This play is considered Gurney's finest work and one of the five. best plays of the 1`9806; A delrghtfullyingratigtng play: ; . A winner and acharmer!'-= Clive Barnes,. New York Post Admission ~ 12 Adu1r~ ,`!7 Youth 6 12, SS Children S and under Fnday7J3y 8:00pm Adwity#17471 SatrdayL4 8 OOpm Achvity~17472 Sunday~/S,~'OOpm Acc-vrty#27473 _ fri~ay1l1d8OOpm. Activrty#27474 ;r :. Safurday2%1 i, 8 OOpm Ac[-v~ry#27475. -' . _ _ _._ ~un_daJr?J1f100pm - -Art-viiy#27496 - --- - -- - -- --- T Children's Variety Show - Saturday, March 24, 2012 1:00 -1:45pm Come and enjoy the zany escapades of the lovable Amazing Mr. Pete. A former Ringling Bros. and Barnum and Bailey Circus Clown, Mr. Pete is cone=man circus that hypnotizes audiences of all ages with a combination of magic, juggling, unicyling and comic audience interaction. Don't be late for the show, this is one you don't want to miss and that your children, will talk about all the way home! Admission "$S Youth; Activity#17477 Prose & Poetry Workshop Saturday, April 14, 2012 3 00 - S:OOpm Come out and bwld your poetic skills as you learn new and innovative ways to penetrate the hearts of all those who hear you. Learn , ,. ., - :. _ ._ hovr to use,voice control, tone and body mechanics to help. deliver your message, Poets from all backgrounds and levels.are welcome.. z~ Learn poetry m a friendly and encouraging setting There will be a $5 entry fee at the. door which mdudes refreshments Please contact Jonnie McCoX-Howell, the Gty's Poet Laureate, at (925) 452-2105 or email poet laureate~dublin ca gov for more detailed information:- Admission:$Sperperson -, .. Antique & Craft Show and Concert Saturday, i~ey 12, 2012, 11 00 = 5 OOpm _ Shop; dine and enjoy live muse on the lovely grounds of the Dublin Heritage Park & Museums. Purchase an elegant box lunch and picnic on t~`shedy lawns,or in the picnic grove. Over 60 vendors will be available with-antiques, collectibles, vintage and hard-to find, __ _ ~tem3 and local arts & crafts and flowers While you stroll the grounds and picmc, Le Horlazz Trio will perform French Gypsylazz,of the _ .._ . _: 19306. Admission: FREE New Talent Film Showcase Saturday,lune 9, 2012 The Dublin Edge presents a showcase of short films by Arcbound corn and various other student and independent groups m the area. The shou~iase mdudes prewew"s for upcoming productions and information on how to get involved_wth the Various protects put on by N~ .. Arcbound and its affiliates. Appropriate for ages sixteen to adult. Admiss~on~.SS per persoq 11:~j 3 ~OOpm Activity #US4S 3:00 - S~OOpm Activity#27546 ' 6:00 = 9:OOpm Activity #27478 c i i-r o F DUBLIN RESOLUTION NO. 01-11 A RESOLUTION OF THE HERITAGE AND CULTURAL ARTS COMMISSION OF THE CITY OF DUBLIN. ADOPTING A FEE SCHEDULE FOR HERITAGE AND CULTURAL ARTS PROGRAMS WHEREAS, the City Council adopted Resolution No. 75-06 resolving that fees and charges for all heritage and cultural arts program and services shall not exceed the estimated reasonable cost of providing the program or service; and WHEREAS, Resolution No. 75-06 authorized the Pazks and Community Services Director, with the approval of the Heritage and Cultural Arts Commission, to establish fees and charges for all heritage and cultural arts programs and services; and WI~REAS, a Fee Schedule for Heritage and Cultural Arts Programs was adopted by Heritage and Cultural Arts Commission Resolution 01-08; and WHEREAS, some new programs have since been introduced which require that fees be adopted. NOW, THEREFORE, BE IT RESOLVED that the Heritage and Cultural Arts Commission does hereby adopt the fee schedule as shown below: Heritage Park & Museums Tours Public, private: and home school groups from "within" the City of Dublin $3.50 per person Public; private and home school groups from "outside" the City of Dublin $5.00 per person Non-Profit. Groups $3.50 per person For Profit or Commercial Groups $5.00 per person Tea & Tour_Program $15.00 per person Lemonade &-Tour Program $15.00 per person Tractor/Wagon Rides $1.50 per person Barn Activities $1.50 per person Heritage Park & Museums Programs Saturday Events $5.00 per participant Children Variety Shows $5.00 per youth participant Victorian Holiday'Tea $25.00 per person Oral History Private Interviews with-CD $25.00 per person Oral History Private Interviews with Transcript $75.00 per person Cultural Arts Programs Winter Concerts (1 - 2 hour concertJprogram) $10.00 adult $5.00 youth (6-12 yrs.) $3.00 youth (5 yrs. and under) Winter Concerts (less than 1 hour concertlprogram) $8.00 adult $5.00 youth (6-12 yrs.) -1- ATTACHMENT 3 $3.00 youth (5 yrs. and under) Theatre Productions (1 - 2 hour production) Theatre Productions (less than 1 hour production) $15.00 adult $8.00 youth (6-12 yrs.) $5.00 youth (5 yrs. and under) $12.00 adult $7.00 youth (6-12 yrs.) $5.00 youth (5 yrs. and under) BE IT FURTHER RESOLVED, that Resolution No. 01-10 be rescinded in its entirety. PASSED, APPROVED AND ADOPTED this 8th day of September, 2011 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Chairperson ATTEST: Parks & Community Services Director -2-