HomeMy WebLinkAbout01.13.1986 Item #F-3cCITY OF NEWPORT BEACH
Parks, Beaches and Recreation Department
TO: Mayor and City Council
FROM: Parks, Beaches and Recreation Director
BY TIE MY CGUNCIJ
CITY OF WNWORT BEACH
JINN 13 19805
APPROVED
January 13, 1986
CITY COUNCIL AGENDA
ITEM NO. F`_( G
SUBJECT: LEASE AGREEMENT FOR LINCOLN SCHOOL GYMNASIUPI
AND ATHLETIC FIELDS
Recommendation:
Authorize the Mayor and City Clerk to execute a lease agreement with the
Newport -Mesa Unified School District for the City's use of the Lincoln
School gymnasium and athletic fields.
nicriiccion-
The Parks, Beaches and Recreation Department has for some time been pursuing
the subject lease to enable an efficient self-supporting method of recreational
use for this vacant school site that will benefit the community. All terms
as specified in the agreement have been reviewed by the school district, the
City staff and the Parks, Beaches and Recreation Commission and found to be
acceptable.
The lease agreement is attached to this communication for City Council review
and, for information purposes, an internal departmental memo on proposed fees
illustrates the operational costs, revenue, proposed uses and fees for this
facility. The staff looks forward to using and improving this valuable
community resource for the residents of Newport Beach.
Ronald A. Whitley
CITY OF NEWPORT BEACH
Parks, Beaches and Recreation Department
DATE: January 2, 1985
TO: Parks, Beaches and Recreation Director
FROM: Recreation Superintendent
SUBJECT: Proposed Lincoln School Facility Fees
Background
With the initiation of City operation of the Lincoln school athletic facilities,
it is proposed that the Parks, Beaches and Recreation Department develop an
equitable fee structure for permit use. With respect to the provisions set forth
in the Lease Agreement between the City and the Newport -Mesa Unified School
District, the fee structure will address the following objectives:
1. Provide revenue to offset direct operational costs, including the monthly
lease fee, on-site personnel and utilities.
2. Assess possible additional revenue to offset indirect costs which are
already budgeted in tax and self-supporting activities.
3. Encourage resident youth participation through sports leagues and City
programs.
4. Encourage resident adult participation through self-supporting sports
leagues and special interest classes.
5. Accurately assess additional fair market costs for non-resident participants
and commercial use.
Direct Operational Costs
The City will incur specific direct operational costs which are either partially
addressed through recreation service fees or not budgeted in the tax supported
(7600) activity. As a result, program and facility permit fees should reflect
the City's recovery of annual costs which include the facility lease ($12,000),
utilities ($12,000) and operations personnel scheduled as needed.
Indirect Operational Costs
Indirect operational costs are addressed through recreation service fees or included
in the tax supported (7600) activity. The additional costs enumerated will be
applied to the proposed facility use fees for private non-resident use of Lincoln
facilities.
Maintenance Supplies $1,000
Maintenance Personnel 3,000
Equipment 2,000
Administration 4,000
Total: $10,000
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Annual Facility Use
It is anticipated that the Lincoln facilities will generate approximately 3,500
activity hours annually. This estimation is based on previous years' use patterns
for the gymnasium and athletic fields for both City and private activities. The
following table illustrates the relationship between projected annual use, direct
costs, indirect costs and the hourly costs:
Indirect Hourly
Facility Hours Utilities *Personnel Lease Costs Cost
Gymnasium 1,000 $ 2,000 $9,000 $4,500 $4,000 $19.50
Athletic Fields 2,500 10,000 -0- 7,500 6,000 9.40
w/lights
*The cost of personnel may not be factored into the facility use fee for community
groups providing their own set up and maintenance.
Use/Fee Categories
Current City policies recognize five use/fee categories. The use categories and
fee structure range from minimum recovery costs to fair market value:
Non -Profit Group - Resident and Non -Resident
Community based organizations licensed by the Internal Revenue
Service or providing a community service.
Private Group - Resident and Non -Resident
Group or individual use not licensed by the Internal Revenue
Service or providing a community service.
� _ _ _ _ . _ _ _ -I
Any group, organization or concern which is using the facility to
conduct business.
Lincoln School Fee Schedule
Utilizing the accepted use/fee categories and applying the recovery costs as
previously developed, the following fee schedule should be applied for permit use
of athletic facilities at Lincoln School:
Facility Non -Profit Groups Private Groups Commercial
Resident Non -Resident Resident Non -Resident Rate
Gymnasium $24/9.50 $30/10.50 $67.50/22.50 $70/25.00 $90/35.00
Athletic Fields $20/10.00 $25/13.00 $30.00/15.00 $30/17.50 N/A
w/lights
Athletic Fields $12/6.00 $15/7.50 $16.00/8.00 $20/10.00 N/A
without lights
Gymnasium Rate - 3 hours/additional hour
Athletic Field Rate - 2 hours/additional hour
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The fee schedule outlined compares favorably with previous fee schedules admin-
istered by the School District. Newport -Mesa did not develop use/fee categories
for resident or non-profit use, thus organizations paid the standard rate which
is similar to the private group, non-profit charge. Newport -Mesa did charge
less for athletic field use; however, City operation of Lincoln will assure a
higher level of field maintenance, thus justifying the slight increase in athletic
field fees.
Exceptions
The Parks, Beaches and Recreation Department must retain the right to approve
permits waiving all or part of the proposed fees. Inasmuch as the City works
closely with youth leagues and organizations which have used other City facilities
to provide a valuable community service, this same principle should be extended
to the Lincoln facility. The City may wish to waive the cost of personnel, lease
percentage or utilities which were factored into the hourly operational cost of
either the athletic fields or the gymnasium. In exchange for waiving fees,
groups may be required to provide set up or maintenance services.
Protected Revenue
Annual revenue generated from activities at the Lincoln facility will include
recreation service fees for facility rentals, special interest classes and adult
sports leagues. Fees for recreation services are designed to cover direct activity
costs as well as indirect facility operation and administration. The following
table indicates the projected annual revenue generated from activities scheduled
at Lincoln School.
Activity Revenue Facility Operations Cost
Facility Rentals $11,400 $11,400
Adult Basketball 17,000 7,000
Adult Softball 9,000 4,000
Special Interest Classes 7,000 3,000
$44,400 $25,400
The revenue projection should cover direct operation costs not budgeted for the
current fiscal year. However, the projected revenue from facility rental is based
on the non-profit rate which does not address indirect costs. As a result,
part of the Lincoln operation will continue to be charged to the tax supported
(7600) activity so that the non-profit rate may be assessed. The non-profit rate
is usually applied to youth community service programs.
Recommendation
It is recommended that the proposed facility fee schedule for permit use of the
Lincoln School gymnasium and athletic fields be approved. The fee schedule
accurately assesses all recovery costs and addresses the objectives previously
stated. It is also recommended the Parks, Beaches and Recreation Department
review specific group use for possible exceptions to the fee schedule dependent
upon potential community service benefit.
rk Deven