2018/02/27 City Council Resolution 2018-025RESOLUTION NO. 2018-025
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK,
CALIFORNIA, ADOPTING A COMMUNITY SERVICES RECREATION PROGRAM
COST RECOVERY POLICY
WHEREAS, Rohnert Park Municipal Code Chapter 3.32, "Cost -Recovery — Fee and
Service Charge System," provides for the "establishment of a fee system to recover costs of the
City in providing certain services, products and regulatory activities," including regular review
of fees to assure that they "continue to recover the reasonable and proportional share of costs
from applicants requesting services," and providing authority for the City Council "to establish
such fees by resolution to support the costs of providing the service or services" requested by
user; and
WHEREAS, the City presently sets its facility and program fees in arnounts that do not exceed
the reasonable cost for the service or benefit provided, and charge this cost to those who are
provided the service or benefit; and
WHEREAS, in certain circumstances, it is preferable to reduce recreational facility and
program fees that are of community benefit below the total cost to provide the service, in order to
facilitate the use of those facilities and programs; and
WHEREAS, the City staff desires to implement a Community Services Recreation
Program Cost Recovery Policy ("Policy") which incorporates the Community Benefit
Methodology to further guide the setting of program fees based on community benefit; and
WHEREAS, the Policy establishes uniform guidelines and cost recovery targets for in-
house recreation programs, events, activities, goods, and services.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert
Park that hereby adopts the attached Community Services Recreation Program Cost Recovery
Policy.
DULY AND REGULARLY ADOPTED this 27th day of February, 2018.
CITY OF ROHNERT PARK
Vea — _---
Pam Stafford, Mayor
ATTEST:
Caitlin Saldanha, Deputy City Clerk
Attachment: Community Services Recreation Program Cost Recovery Policy
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CITY OF ROHNERT PARK
Attachment 1
CITY COUNCIL POLICY
SUBJECT POLICY NO. RESO. NO EFF. DATE
COMMUNITY SERVICES RECREATION ASSIGNED BY
PROGRAM COST RECOVERY POLICY DEPUTY CITY
CLERK
PURPOSE
The City of Rohnert Park (City) Community Services enhances the City's high quality of
life and nurtures the health and well-being of our people, our community and our
economy.
The purpose of this Community Services Recreation Program Cost Recovery Policy
(Policy) is to establish uniform guidelines and cost recovery levels and goals for in-house
recreation programs, events, activities, goods, and services. Establishing a cost recovery
policy will accomplish the following:
1. Provide a structure to calculate fees for recreation programs.
2. Align community contributions with community benefits.
3. Provide systematic framework for the potential removal of programs not generating
the designated minimum cost recovery for that program.
4. Allow decision makers to decide how General Fund subsidy is allocated.
DEFINITIONS
City: Means the City of Rohnert Park and its departments and events sponsored by the
City.
Community Benefit: The positive impacts resulting from a service to a community, i.e.
enhanced property values, public health, social and environmental needs met, and/or
improved citizen quality of life.
Cost: Expenses related to the delivery of recreation programs and activities. See Direct
Cost and Indirect Cost for further information.
Direct Cost: Costs that are -directly related to a program or service. Without the program
or service, these costs do not exist. Examples would include part-time staff and materials.
Indirect Cost: Costs not tied to one specific program, service, or facility. These are full-
time staff salaries and benefits associated with facilities where programs are hosted.
Assumed rate for indirect cost is 35% of direct cost.
In-house (program and activities): Recreation programs and activities staffed with part -
and full-time City employees.
POLICY
Community Services offers services that are funded through a combination of user fees,
taxes, grants, and donations. Fees and charges shall be assessed in an equitable
manner in accordance with Table 1. Percentages shall be considered as guidelines;
however, special circumstances as well as the nature and cost of each program should
be taken into consideration.
CITY OF ROHNERT PARK
Attachment 1
- CITY COUNCIL POLICY
SUBJECT POLICY NO. RESO. NO EFF. DATE PAGE 2 OF 4
COMMUNITY SERVICES RECREATION ASSIGNED BY
PROGRAM COST RECOVERY POLICY DEPUTY CITY
CLERK
Process
1. Community Services will conduct an annual comprehensive review of cost
recovery targets and levels.
2. Community Services will assess in-house recreation programs and activities to
ensure proper assignment of cost recovery level.
3. New programs will be sorted and assigned a cost recovery level using the
Community Benefit Methodology.
4. A Fee Structure/Rate review will be done annually to determine viability of
programs.
City of Rohnert Park's Cost Recovery Model
The City of Rohnert Park will use the Community Benefit Methodology (CBM) to assign
cost recovery targets to in-house programs and activities. This cost recovery model
recognizes the spectrum of beneficiaries of recreation programs and activities ranging
from mostly community benefit to mostly individual benefit. Definitions of levels in the
CBM are informed by the City's mission, vision, and values, and help determine the
level of general fund contribution provided to each program and activity.
The following model represents all categories of services currently provided, or those
which may be provided in the future by Community Services. The levels are defined by
the degree of benefit to the community, the values of the Rohnert Park community, and
the mission of Community Services. This model and policy forms the basis for setting
fees and charges. The definitions for each level are as follows:
Level l — Mostly Community Benefit
Recreation programs and activities that have a wide community benefit and meet the
core mission and vision of the City by enhancing the overall quality of life for community
members. Participation in these programs and activities is open to all members of the
community, with an emphasis on serving populations in -need. High participation is
beneficial to the community, and thus it is valued over cost recovery.
Level 11 — Considerable Community Benefit
Programs or activities that fulfill the core mission of Community Services that provide a
wide community benefit. These programs and activities are general, basic and non-
specific to any one recreational activity or are generally accepted as traditional
municipal youth programs.
CITY OF ROHNERT PARK
Attachment 1
- CITY COUNCIL POLICY
E]
SUBJECT POLICY NO. I RESO. NO. I EFF. DATEPAGE 3 OF 4
COMMUNITY SERVICES RECREATION ASSIGNED BY
PROGRAM COST RECOVERY POLICY DEPUTY CITY
CLERK
Level 111 — Individual and Community Benefit
Recreation programs and activities in this level are more interest -specific for individuals -
These programs and activities may be traditional municipal programs or may vary
depending on current recreation trends. Market rate consideration, as well as
participation rates, are taken into consideration when determining the cost recovery for
program and activities.
Level IV — Considerable Individual Benefit
These programs and activities have a higher individual focus and may be competitive or
highly specialized programs or activities.
Level V — Mostly Individual Benefit
Recreation programs and activities benefit the individual more than the wider
community. These programs and activities have a higher degree of specialization, and
adults are often the primary beneficiaries. The demand for the program or activity is a
factor in fee setting and some activities may be strictly revenue -oriented.
The Cost Recovery Model will be used to determine the minimum percentage of cost
recovery for individual in-house recreation programs and activities. The cost recovery
percentages increase from Level 1 to Level 5.
The target minimum cost recovery percentages at each level are listed below:
Table 1: Target Minimum Cost Recovery by Level
Levels Target Minimum Cost Type of Cost
Recovery by Level___
Level 1 _ 0-14% Direct Cost
Level 2 15-49% Direct Cost
Level 3 50-79% Direct Cost
-
Level 4 80-99% Direct + Indirect Cost
Level -5 100% Direct + Indirect Cost
Attachment 1
SUBJECT
COMMUNITY SERVICES R
PROGRAM COST RECOVE
CITY OF ROHNERT PARK
CITY COUNCIL POLICY
Community Services Recreation Program Cost Recovery Model:
Minimum Cost Recovery by Level
Mostly
Individual
. Benefit;
5 100%
Considerable
Individual Benefit
4 80-99%
Communityllndividual Benefit
(Balanced Beneficiaries)
3 50-79%
Considerable Community Benefit
15-49%
Mostly Community Benefit
0-14%
POLICY NO.
RESO. NO. EFF. DATE PAGE 4 OF 4
CREATION
ASSIGNED BY
RY POLICY
DEPUTY CITY
CLERK
Community Services Recreation Program Cost Recovery Model:
Minimum Cost Recovery by Level
Mostly
Individual
. Benefit;
5 100%
Considerable
Individual Benefit
4 80-99%
Communityllndividual Benefit
(Balanced Beneficiaries)
3 50-79%
Considerable Community Benefit
15-49%
Mostly Community Benefit
0-14%