5.2. SR 12-07-2009REQUEST FOR ACTION
fiver
To Item Number
Ma or and Ci Council 5.2.
Agenda Section Meeting Date Prepared by
Administration December 7, 2009 Bill Maertz, Parks and Recreation
Director
Item Description Reviewed by
Non-Resident Fees for Recreation Programs Lori ohnson, Ci Administrator
Reviewed by
Action Requested
Staff is requesting direction regarding charging non-resident fees for recreation programs.
Background/Discussion
At the August 10, 2009, budget workshop the Mayor requested a review of non-resident use of recreation
programs. Staff pulled usage numbers for recreation programs and fee-based community events. A
review of the 2008 registration numbers indicates the non-resident percentages of fee-based programs are
approximately 32%. This is an estimate, based on available data.
At the September 8, 2009, City Council meeting staff presented information regarding non-resident fees.
The Council directed staff to present the information to the Parks and Recreation Commission and
return with a recommendation.
The Parks and Recreation Commission considered the non-resident fee issue at the October 14 Parks and
Recreation Commission meeting. At that time the commission voted to not recommend non-resident
fees but requested staff to come back with more information. At the November 18 Parks and Recreation
Commission meeting staff presented information about what other cities were doing regarding non-
resident fees. The Commission voted 5-1 to recommend to the City Council non-resident fees of five
dollars on programs that cost under fifty dollars and ten dollars on programs over fifty dollars and to
review after one year to determine what effect this change has on participation and revenue.
Informational Note: At the November 18, 2009 Parks and Recreation Commission meeting the
Commission voted to accept staff's recommendation to change the field rental policy to prohibit for-
profit sports leagues from renting city owned fields. These "franchises" run tournaments for profit and
have created situations where local youth associations have been short of fields for large tournaments.
Typically the field use policy has been set internally with input from the Parks and Recreation
Commission.
Financial Impact
The Commission is recommending a review after one year to determine the impact on revenue.
C:\Documents and Settings\jmiller\Local Settings\Temporary Internet Files\OLK3E\5 2 Non- Resident Fees.doc
Attachments
^ Draft November 18, 2009 Parks and Recreation Commission Minutes
Action Motion by Second by Vote
Follow Up
C:\Documents and Settings\jmiller\Local Settings\Temporarp Internet Files\OLK3E\5 2 Non- Resident Fees.doc
MEETING OF THE ELK RIVER
PARKS AND RECREATION COMMISSION
HELD AT CITY HALL
WEDNESDAY, NOVEMBER 18, 2009
Members Present: Chair Anderson, Commissioners Boese, Jaker, Niziolek, Nystrom
and Peterson
Council Liaison: Councilmember Zerwas
Staff Present: Bill Maertz, Parks and Recreation Director; Chris Leeseberg,
Planner/Park Planner; Steve Benoit, Recreation Manager; Tonya
Love, Recording Secretary
Call Meeting To Order
~~
Pursuant to due call and notice thexcoE, nc~ mcctin~ of the Elk RiverParks and
Recreation Commission was called to order ar G: 31 p.n~~~by Chair Anderson.
2. Consider November 18, 2009 Parks & Recreation C~~mmission Agenda
MOVED BY COMMISSIONER NYSTROM AND SECONDED BY
COMMISSIONER BOESE TO APPROVE THE NOVEMBER 18, 2009
PARKS & RECREATION COMMISSION AGENDA. MOTION CARRIED
6-0.
3. Consider Mitlures of Oct~~heY 1~ 2009 Packs ~ Recreation Commission Meeting
MOVED BY COMMISSIONER JAIiER AND SECONDED BY
COMMISSIONER PETERSON TO APPROVE THE OCTOBER 14, 2009
PARKS AND RECREATION COMMISSION MEETING MINUTES.
MOTION CARRIED 6-0.
4. Parks & Recreation Commissioner to Attend December 14, 2009 Citv Council
Meeting and I~eccmbes 8, 2009 and January 12, 2010 Planning Commission
Meetings
-~
4.1. December 8, 2009 Planning Commission Meeting
Commissioner Nystrom will attend the December 8, 2009 Planning
Commission Meeting.
4.2. December 14, 2009 City Council Meeting
Park & Recreation Coimnission Minutes
November 18, 2009
Page 2L
Commissioner Nystrom will attend the December 14, 2009 City Council
Meeting.
4.3. Tanuarv 12, 2010 Planning Commission Meeting
Commissioner Anderson will attend the January 12, 2010 Planning
Commission Meeting.
5. Open Mike -None
6. Recreation Manager's Report -Steve Benoit
Recreation Manager, Steve Benoit shared that this ~•car's fall program opportunities
are in full swing and has had a positive response. l he (-;rear Pumpkin Roll held in
early October was enjoyed by several families this year.
Mr. Benoit shared the Senior Center and Ice 'arena monthly reports.
7. Director's Report -Bill Macrtz
Director of Parks and Recreati~~n, Bill Maertz shared that the application for the
legacy grant for Babcock Memorial Park trail phase two was submitted.
Mr. Maertz stated thatthe parks maintenance crews have been working on removing
buckthorn Eton, tlic Great Northern `frail.
Mr. Maertz also shared that there is private. hunting land adjacent to the new section
of the Great ~iornc~rn 'frail; staff belir~ cs t11is to be a potential safety issue during
elect hunting season and would hkc ro cl.use the trail north of County Road 33
during this short tlinc heriod.
Mr. ~laertz shared that cite staff met with Community Education staff and discussed
the irri~ati<~n deficiencies at Oak Knoll Athletic Complex; Pinewood Golf exceeded
revenue and expenditures were under budgeted expectations and lastly, staff
reviewed fees char?ed to youth athletic associations for field use and based on the
cost of supplies there will be a slight increase starting in 2010.
Commissioner Anderson stated that he liked the approach of closing the trail for the
short deer hunting season.
Mr. Maertz shared that Commissioner Amanda Larson had sent a letter resigning
from the commission and thanked her for her time and service to the Parks and
Recreation Commission.
8. Action/Discussion Items
8.1. Policy Issues
Park & Recreation Commission Minutes Page 30
November 18, 2009
8.1.A Field usage by For-Profit Agencies
Recreation Manager, Steve Benoit shared that the department has received several
requests from private, for-profit organizations wishing to rent Ciry of Elk River
athletic facilities for the purpose of operating tournaments for profit. Currently we
do not have an in-take process in place to accommodate these types of requests. In
the past the primary users of fields has been Elk River Athletic Associations as well
as in-house Park and Recreation Programs.
A survey of other agencies in how they manage for-profit groups was conducted.
Results showed a mix of agencies that allow for-profits t<, ren~ athletic fields and
others that do not. Those that do allow rentals have. higher fee scales developed in
relating to for-profit agencies.
Other Information to Consider
1. Our current field use process was set uh ~~~irh the intent of accommodating non-
profit youth agencies.
2. Most participants in these activities would likely resi~le outside of l/lk River.
3. Renting to for-profit agencies would potentially generate additional rental revenue
as well as the economic value of bringing participants into the Elk River
community for an event.
4. Activities that for-profit agencies wish t~> cun~luct u~a~- directly compete against
both in-house programs as well'as activities being j~ro~~ided by Elk River Athletic
Association.
5. Elk River Athletic .Associations do invest financially into field improvement
projects.
6. Booking fielcl~ to fur-profit agencies can cause scheduling conflicts with Elk River
Athletic Associations. 1 ~~-en ~~~ith ~i~-ion Talk River Athletic Associations' first
access to fields, rhea- often Flu uor I:nc>w the field needs until close to their
Tournament dates. There way a situation where an association could have
c~panded the size of their rourn:xment but the additional fields they needed were
already booked to a for-profit agency.
Staff Recommendations
1. Staff recommends that for-profit agencies not be allowed to rent Elk River
Athletic fields for the purpose of operating a program or tournament for profit.
The original intent of building the fields was for use by non-profit athletic
associations and in-house programs. Allocating the fields to for-profit agencies
would conflict with this intent.
2. If the Commission does determine that for-profit agencies should have access to
rent Elk River athletic fields for profit activities, staff recommends a new fee scale
be implemented that is more appropriate fox these types of events. Also, a
priority date system be put in place to ensure non-profit groups have first access
to field usage.
Commissioner Peterson asked who the user groups were.
Park & Recreation Commission Minutes
November 18, 2009
Page 4C]
Mr. Benoit stated the groups were Independent Softball Association (ISA) and local
youth athletic groups.
Independent Softball Association representative, Derrick Boella stated that ISA has
been in existence for 26 years, however new to the Minnesota area for the last two
years. ISA rented the Elk River athletic complex around five or six times and would
be interested in doing the same amount in 2010.
Northwest Diamonds Fast pitch Association President, Brian Lindquist shared that
their group represents youth softball players from around the Elk River school
district area. Tournaments are the way they raise mono;-. They have built a great
working relationship with the Parks Department in maintaining the fields.
Commissioner Anderson asked what makes a ~;rouh profit ~-~. non-profit.
Director of Parks and Recreation, Bill Maertz ~rar~d that the for-profit groups will
run tournaments to make profits whereas non-profit groups the moncv does back
into the association to off-set costs for families.
Mr. Lindquist stated that the Northwest Diamcmds 1 ast pitch Association is 501 c3,
which is run by a board of 11 volunteers.
Council Member 7,erwas asked if there-had been ~lifticulty in scheduling of fields.
Mr. Lindquist scitcd that there was one fall tournament they moved from Elk River
to East Bethal due ro nor baring the option to expand to using all the fields.
MOVED BY COI\~IMISSIONER JAKER AND SECONDED BY
COMMISSIONER PETERSON TO RECOMMEND THAT FOR-PROFIT
AGENCIES NOT BE ALLOWED TO RENT ELK RNER ATHLETIC
FIF?LDS FOR THE PURPOSE OF OPERATING A PROGRAM OR
TOURNAMENT FOR PROFIT. MOTION CARRIED 6-0.
8.1.B. Non-Resident Fees
Director of Parks :uid Recreation, Bill Maertz shared the research done following the
October Parks 8r Kecreation Commission meeting.
Blaine does not charge non-resident fees, programs cover their direct costs and
Admin costs are considered part of the general fund.
Woodbury does not charge non-resident fees except for adult leagues and residents
receive first access to register for programs.
Lino Lakes charges non-resident fee of five to ten dollars depending on the cost of
the program; it is considered a symbolic gesture, not a major source of revenue.
Park & Recreation Commission Minutes
November 18, 2009
Page 5D
Shoreview charges non-resident fees, it is looked at as residents covered the cost of
the parks and Community Center and therefore should receive a discount as
compared to non-residents.
Farmington does not charge non-resident fee, their computer program system does
not screen between residents and non residents. It is considered that general funds
covers administrative costs, programs need to cover direct costs so they want as
many participants as possible.
New Ulm does charge anon-resident fee, 10% is added on to the program fee.
Currently, 50% of Elk River's recreation program registr'atiocl~ are done online. Our
software does have the ability to charge anon- resident fee. This would need to be
on the honor system because we would have no way of verifying residency online.
Mr. Maertz stated that if the Parks Commission wishes to rccon7mend anon-resident
fee to the City Council., staff recommcuds the following:
• $5 non-resident fee for programs that cost under $5U.
• $10 non-resident fee fox programs that cost over $50.
Mr. Maertz shared that it is difficult to predict, hat price-point would result in
driving people away and result~in reduced revenue If these feesare adopted staff
would recommend a review of non-resident re~isrratirms be conducted after the first
year.
Council Member Gct~~as shared that his thoughts oil the issue have not changed
since the October Parla Commission meeting. While looking at cut across the board
and still necdin~ ro prop idc the highest level of service to residents and non-residents
.rho want to participate shuul~l pa~~ nwie~'
Commissioner)akcr is in line ~t ith the staff recommendation. It is a principle of
"cosy-sharing", which can h~~ used ixi diffusing any arguments about the non-resident
fee.
Commissioner Andersoi.i likes the idea of a one year check up and questioned if the
non-resident fee ~~ ith extend to other programs outside of the recreation programs.
Mr. Maertz stated that at this point it would only include the recreation programs
excluding the adult softball league which is not a subsidized program.
MOVED BY COMMISSIONER JAKER AND SECONDED BY
COMMISSIONER NIZIOLEK TO RECOMMEND TO THE CITY
COUNCIL TO IMPLEMENT A $5 NON-RESIDENT FEE FOR
PROGRAMS THAT COST UNDER $50 AND $10 NON-RESIDENT FEE
FOR PROGRAMS THAT COST OVER $50 FOR RECREATION
PROGRAMS AND TO REVIEW PROGRAMS REGISTRATION FEES
AFTER THE FIRST YEAR. MOTION CARRIED 5-1.
Park & Recreation Commission Minutes
November 18, 2009
9. Information/Update Items
9.1. Volunteer of the Month
Recreation Manager, Steve Benoit recognized Dave Burandt as this month's
Volunteer of the month.
9.2. Community Events
Page 6^
Recreation Manager, Steve Benoit showcased the Familv Plight Night event in a
power point presentation.
9.3. Park Highlights
Planner/Parks Planner, Chris Leeseberg showcased Meadowvale. Heights Park in a
power point presentation.
9.4. Adopt-A-Park Update
Planner/Parks Planner, Chris Lecseberg shared rhat i~feadowvale Heights Park is
available for adoption with the Adopt-A-Park Prograt~i.
10.1. Update October l9, ?Ull~ City Council Meeting„- None
10.2. Update No~-ember 1(l, ?~~ll~) planning GO1111T11SSlon Meeting- None
10.3. U date I~oVemhrr 1< ?(1O`) City Council I~T~ e~ -None
11. C)ther Business - ~ionc
.,~
12. Adjournment
There being no further brasiness, the meeting adjourned at 7:36pm.
Minutes prepared L>; "1'onya Love.
C~~ti~~~,'~v~-~--
Tonya Love
Parks & Recreation Recording Secretary
~~~-_
Dave Anderson
Parks and Recreation Commission Chair