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Home My WebLink AboutIR 7716 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7716 r May r ' To the Mayor and Members of the City Council Y 4r 1993 PARK AND RECREATION DEPARTMENT RESERVATIONS, SPECIAL Subject: EVENTS AND FESTIVAL EQUIPMENT POLICY AND FEE PROPOSAL r6T3 BACKGROUND on November 1, 1988 new and adjusted fees for services managed by the Park and Recreation Department became effective in accordance with Park and Recreation Advisory Board and City Council endorsement and adoption, respectively. As stated in the preface of the Park and Recreation Department Fees and Charges Manual, "the purpose of these fee changes was to bring the prices of services closer to the cost of these services while continuing to provide low cost recreation for all. By generating more revenue, it is hoped that the Park and Recreation Department can maintain its present service level in this time of budgetary restraint". Subsequently, in September 1989 the Park and Recreation Advisory Board revised its fee waiver policy in an effort to insure equitability in processing requests for waivers. In taking this action, it was recommended that the waiver policy be scheduled for evaluation after a year or more of operation for possible improvement. Since 1988 some fees have been adjusted, including swimming pool and Log Cabin Village admissions and McLeland Tennis Center fees in 1990 and Botanic Garden Center rental fees, golf fees and athletic field rental fees in 1992. Admission fees for the Fort Worth Zoo were adjusted in 1992 in accordance with the agreement between the City and the Fort Worth Zoological Association. In an effort to streamline the special event and reservations process, Park Department staff initiated a comprehensive review of the program in May 1992. The objectives of this review were to increase responsiveness to the customer, find ways to reduce the number of waiver requests and identify actual operating costs of the festival equipment rental program which, as a result of budget reductions implemented in October 1992, had been drastically scaled back. - - OFFICIAL RECORD i ISSUES CITY SECRETARY As a result of this review it was determined FT. WORTH, 1. The present Special Event policy for events involving leasing of park property, collection of admissions, or conducting sales is burdensome from both a customer and a service provider standpoint. 2. The fee schedule for individual (less than 100 persons) reservations is cost prohibitive and constantly results in requests for waivers. 3. The Reservations/Special Events fee schedule contains four (4) separate categories and does not provide for a cost differential betwee4 individual/tax exempt reservations and those of a commercial nature. 4. The festival equipment fee schedule covers only a portion of direct costs and does not address indirect costs. ` ISSUED BY THE CITY MANAGER FORT WORTH.TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7716 OF ok exx May 4, 1993 To the Mayor and Members of the City Council Page 2 of 5 PARK AND RECREATION DEPARTMENT RESERVATIONS, SPECIAL Subject: EVENTS AND FESTIVAL EQUIPMENT POLICY AND FEE PROPOSAL ran 5. The current Site Reservation fee waiver policy has resulted in inconsistencies in the authorization of fee waivers for site reservations. 6. Concession fees are based upon either percentage of gross or number of persons which creates inconsistencies in revenues and requests for waivers. 7. Photography fees are based upon an established hourly rate and number of persons resulting in requests for waivers. 8. Building reservation fees for the Bradley Center in Tadlock Park are cost prohibitive. WORK SESSION RESULTS On December 7, 1992 a focus group comprised of community individuals was invited to provide input to the findings of the review and recommended changes to the policies and procedures. The group included a representative of the Sports Advisory Council, Streams and Valleys, Inc. , Fort Worth Star Telegram, Fort Worth Garden Club, Boys and Girls Clubs and the Como Neighborhood Advisory Council. This item including input received from the focus group was presented to the Park and Recreation Advisory Board as an Informational Item on December 15, 1992. At the Board's request, a special work session was held on January 19, 1993. Notices of the work session were sent to all event sponsors with whom the Park Department has traditionally entered into agreements for Reservations/Special Events. The purpose of this work session was to discuss the review and subsequent recommendations developed by staff for the policy and fee structure. The issues raised by the participating special event sponsors and Park Board members were: + Should festival equipment rental fees be adjusted, a phased-in process would be preferred to allow for adjustments in operating budgets of event sponsors. + Identifying full cost recovery for operation of the festival equipment program is an effective way of demonstrating costs incurred by the program; the basis for recommending that waivers be strictly limited was understood, however, if adopted, the resultant fee increases will place a financial hardship on event sponsors. OPP, + The alternative of allowing co-sponsorship with the Park Department, resulting in waiver of site reservation fees, would present an acceptable option for event sponsors however, some groups whose proceeds benefit specific programs outside the department, i.e., scholarships for youth, expressed a concern. FFICK R- G 1Y SECRETARY I ISSUED BY THE CITY MANAGER FO T AD X 'i} 1.WhIp. j INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7716 T May 4, 1993 ��*#► To the Mayor and Members of the City Council Page 3 of 5 a + PARK AND RECREATION DEPARTMENT RESERVATIONS, SPECIAL r+rx Subject: EVENTS AND FESTIVAL EQUIPMENT POLICY AND FEE PROPOSAL wsr� • Revenues generated by reservations and/or festival equipment fees should be retained by the Park Department and allocated for park improvements (this item is not recommended for implementation) . • The proposed concession/admission fee waiver policy was generally accepted. At the February 19, 1993 Park and Recreation Advisory Board meeting, the Board approved a motion to concur with the staff recommendation as written except to amend the recommendation to allow individual phase-in of the new policy and fees for festival equipment rental to allow adjustment of the operating budgets of the Ballet Concerto, Shakespeare in the Park and the Fort Worth Symphony Orchestra Association. RECOMMENDATIONS Based on the staff findings and input received from the focus group, work session and Park and Recreation Advisory Board, the following revisions to the Reservations, Special Event and Festival Equipment Policy and Fee Structure are recommended: 1. Special Events Approval Process It is recommended that for events involving leasing of park property, sales or admission fees, requiring the need for Park Board and City Council approval be discontinued. To achieve this program change, resulting in the requirement of administrative approval only, an amendment to the current City Ordinance would be required to allow for administrative approval of events of less than 30 days duration and for agreements involving fees or revenues of $5,000 or less. 2. Individual Site Reservations Fee Schedule - 100 Persons or Less A reduction of the minimum fee from $75 to $25 for individual/tax exempt organizations and $50 for commercial/for profit groups is recommended. If this fee reduction is approved the practice of issuing waivers would be discontinued. As a result, a change in revenues from $10,847 in FY 1991-92 to $12,420 during the first full year of implementation is projected. 3. Reservations/Special Events Fee Schedule Currently, the schedule is made up of four (4) categories which differentiate between weddings, rallies, closed use and public events. It is recommended that one fee schedule be established to include two (2) categories for individual/tax exempt and commercial/for profit groups and that adjustments be made to the current fee structure. OFFICK RECORD MY SECRITARY ISSUED BY THE CITY MANAGER R ��X S INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7716 .T May 4, 1993 To the Mayor and Members of the City Council Page 4 of 5 PARK AND RECREATION DEPARTMENT RESERVATIONS, SPECIAL Subject: EVENTS AND FESTIVAL EQUIPMENT POLICY AND FEE PROPOSAL rsn 4. Festival Equipment Fees & Waivers A. A full cost recovery program including all direct and indirect costs is recommended. This initiative would increase all current fees an average of 71% resulting in an increase in projected revenues from $13,240 to $22,591. B. No waivers will be considered for use of festival equipment except for the annual Mayfest event (which pays 20% of its net profits to the City) and tax exempt organizations which currently maintain a contractual agreement with the City in which one hundred (100%) percent of the net proceeds of the organization are directed to the Park and Recreation Department. Organizations which would qualify under this stipulation include the Fort Worth Garden Club, Botanical Garden Society, Friends of the Nature Center and Sports Advisory Council. 5. Site Reservation Fee Waiver Policy In cases where the benefits to the City outweigh the revenues which would be collected for a reservation and no costs are incurred by the City, the Park and Recreation Director may consider waiver of the reservation fee through co-sponsorship of the event. A co-sponsorship will be considered for events sponsored by tax exempt 501(c) (3) organizations and governmental entities and shall require that the City of Fort Worth Park and Recreation Department be named on all promotional materials. In cases of neighborhood associations or other organizations which support the park system, waivers will be considered when proceeds of activities from the event are wholly dedicated to benefit the Park and Recreation Departments facilities and/or programs. Benefit versus cost will be determined by the cost incurred by the Park and Recreation Department for operational expenses combined with the fees to be waived versus the amount of funds to be raised in support of the park system or beneficiary of the OFFICK � .YORU 6. Concessions and Admission Fees SEC�Rf�aRY A fee schedule of $50 or 10% of gross, whichever is grey a � �� y recommended (thus eliminating the per person fees) for commer i f , iM profit organizations. For tax exempt/not for profit organizations, a fee of $25 or 5%, whichever is greater, is recommended. If this fee adjustment were approved, the practice of issuing waivers would be discontinued. As a result a revenue increase from the FY 1991-92 total of $6,643 to a full year total of $14,011 is projected. 7. Photography Fees Elimination of each additional person fee which would result in a flat rate of $75 or $25 per hour (dependent on site), plus all expenses incurred by the City is recommended. ISSUED BY THE CITY MANAGER FORT WORTH. TEXAS INFORMAL REPORT TQ CITY CC}UNCIt. MEMBERS No. 7716 OWE% May 4, 1993 s To the Mayor and Members of the City Council Page 5 of 5 cPARK AND RECREATION DEPARTMENT RESERVATIONS, SPECIAL }e:i. Subject: EVENTS AND FESTIVAL EQUIPMENT POLICY AND FEE PROPOSAL tan 8. Building Reservation Fees at Bradley Center An adjustment of the fee schedule to $25 for the first three (3) hours and $14 per hour thereafter is recommended, Conclusion It is recommended that the revisions to the current Reservations, Special Events and Festival Equipment Policy and fee structures be adopted as listed. Attached to this report is supporting detail for each of the recommendations. IL Bob Terrell City Manager OFIL BT:a Attachments URN ffCORD RE RY FT. WQRTH, ?' X. ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS Page Al Program: Special Events Approval Process Issue: The present policy is burdensome from both a customer and a service provider standpoint. Under current City Code, events involving the leasing of park property, conducting sales or collecting admission fees are required to be reviewed by the Park and Recreation Advisory Board and approved by the City Council. Input: Revise the process to allow for administrative review and approval at the department level. Recommendation: It is recommended that for events involving leasing of park property, sales or admission fees requiring the need for Park Board and City Council approval be discontinued. To achieve this policy change from City Council approval to administrative approval, an amendment to the current City Code, Section 24-6, would be required. The proposed changes would apply only to park use of less than thirty days duration and for agreements involving fees to the City of $5,000 or less. Revenue Increase/Decrease: None OP* RFF#CK RECORD CITY SECRETARY FT. WORTH, TEL Page A2 Program: Individual Site Reservations Fee Schedule - 100 Persons or Less Issue: Current fees for individual events of 100 persons or less are set at $75 which is cost prohibitive. Due to this fee level, the department receives a number of requests for waiver of reservation fees for school picnics, church events, walk-a- thons, etc., whose only other option to paying the fee is first come first serve. Invut: Adjust fees to nominal level while continuing to collect a fee for reservation privileges. Recommendation: A reduction of the $75 fee to $25 for individual/tax exempt organizations and $50 for commercial/for profit groups is recommended. If this fee reduction is approved the practice of issuing waivers would be discontinued. This adjustment is projected to result in a change in revenues from $10,847 in FY 1991-92 to $12,420 during the first full year of implementa- tion. Revenue Increase/Decrease: $1,573 op ,... 0FFRCML RECORD CITY SECRETARY E7'. WORTH, TEX. Page A3 Programs Reservations/Special Events Fee Schedule Issues Currently, the schedule is made up of four (4) separate categories which differentiate between weddings, rallies, closed use and public events. The fee schedule does not provide for a cost differential between individual/tax exempt reservations and those of a commercial nature. Inputs Charge the higher fees to the commercial groups such as businesses because they can afford to pay a higher fee. Recommendation: It is recommended that one fee schedule be established to include two (2) categories for individual/tax exempt and commercial/for profit groups and that the fee schedule be adjusted. If this fee adjustment is approved the practice of issuing waivers would discontinue unless conditions of co- sponsorship existed. Revenue Increase/Decrease: Increase of $3,988 - Commercial/For Profit Increase of $4,345 - Individual/Tax Exempt , •- OFFICIAL RfC�RD CITY SE MARY FT. W Its TEX. Page A4 Prociram: Festival Eguivment Fees & Waivers Issue: The festival equipment fee schedule covers only a portion of direct costs and does not address indirect costs. Inout: Identifying full cost recovery for operation of the festival equipment program is an effective way of demonstrating costs incurred by the program; the basis for recommending that waivers be strictly limited is understood, however, if adopted, the resultant fee increases will place a financial hardship on event sponsors. Should festival equipment rental fees be adjusted, a phased-in process would be preferred to allow for adjustments in operating budgets of event sponsors. Recommendation: A. A full cost recovery program including all direct and indirect costs is recommended. This initiative would increase all current fees an average of 71% resulting in an increase in projected revenues from $13,240 to $22,591. B. No waivers will be considered for use of festival equipment except for the annual Mayfest event (which pays 20% of its net profit to the City) and tax exempt organizations which currently maintain a contractual agreement with the City in which one hundred (100%) percent of the net proceeds of the organization are directed to the Park and Recreation Department. Organiza- tions which would qualify under this stipulation include the Fort Worth Garden Club, Botanical Garden Society, Friends of the Nature Center and Sports Advisory Council. The Park and Recreation Advisory Board has recommended that negotiations be conducted with Shakespeare in the Park, Ballet Concerto and the Fort Worth Symphony Association to phase in festival equipment fee increases. Revenue Increase/Decrease: $9,351 •.. OFFICIAI. RECORD CITY SECRETARY FT. WORTH, TEX. Page A5 Program: Site Reservation Fee Waiver Policy Issue: The current site reservation fee waiver policy for Special Events has resulted in inconsistencies in authorization of fee waivers. Input: The alternative of allowing cosponsorship with the Park Department, resulting in waiver of site reservation fees, would present an acceptable option for event sponsors however, some groups whose proceeds benefit specific programs outside the department, e.g., scholarships for youth, expressed a concern. Recommendation: In cases where the benefits to the City outweigh the revenues which would be collected for a reservation and no costs are incurred by the City, the Park and Recreation Director may consider waiver of the reservation fee through cosponsorship of the event. A cosponsorship will be considered for events sponsored by tax exempt 501(c) (3) organizations and governmental entities and shall require that the City of Fort Worth Park and Recreation Department be named on all promotional materials. In cases of neighborhood associations or other organizations which support the park system, waivers will be considered when proceeds of activities from the event are wholly dedicated to benefit the Park and Recreation Department's facilities and/or programs. Benefit versus cost will be determined by the cost incurred by the Park and Recreation Department for operational expenses and the fees to be waived versus the amount of funds to be raised in support of the park system or beneficiary of the event. Revenue Increase/Decrease. $3,535 OFFICIIkA, RECORD 001b, CITY L-FT. NORTH, TTX. t' Page A6 Program: concessions and Admission Fees Issues: Concession fees are based on either percentage of gross or number of persons which creates inconsistencies in revenues and requests for waivers. Input: The proposed concession/admission fee waiver policy was generally accepted. Recommendation: A fee schedule of $50 or 10% of gross, whichever is greater, is recommended for commercial/for profit organizations. For tax exempt/not for profit organizations, a fee of $25 or 5%, whichever is greater, is recommended. If these fee adjustments are approved the practice of issuing waivers would be discontinued. This initiative is projected to result in additional revenues from the FY 1991-92 total of $6,643 to a full year total of $14,011. Revenue Increase/Decrease: $7,368 OP HFF1 RECORD C VCRSEC RETMy Ft. WDRIH, 1`EX. Page A7 Proaram: Photography Fees Issue: Photography fees are based upon an hourly rate of $75 and $25 dependent on site plus the number of persons on the site which results in requests for waivers. Input: None Recommendation: A flat rate of $75 or $25 per hour (dependent on site), plus all expenses incurred by the City is recommended. Revenue Increase/Decrease: $ 3,352 OFFIC, RE�CQ� 0 cIN sEMARr FT. wo�r�, T, Page AS Proctram: Building Reservation Fees at Bradley Center Issue: Building reservation fees for the Bradley Center in Tadlock Park are cost prohibitive. Current fees are $25/hour. Input: None Recommendation: An adjustment of the fee schedule to $25 for the first three (3) hours and $10 per hour thereafter is recommended. Revenue Increase/Decrease: Expect to break even based on increase in volume. OFFICIAL. RECORD CRY HIM Y FT. WORTH, M. SUPPORTING DETAIL SECTION 8 PROPOSED ORDINANCE, POLICIES AND FEE SCHEDULES i OFFICL41 RECORD CITY SECRETARY FT. WORTH, TEX. INDEX � Bla. . . . . . . . . . . . . . . . .. . . .. . . . . . . . .. . .. . . . .Proposed Ordinance Blb. . . . . . . . . . .. . . . . .. . .. . .. . .. . .. . . . . . . . .Proposed Ordinance (Continued) B2/3. . . .. . . . . . . .. . . . . ... . . . . .. ... . .. . . . . .Current Site Reservation Fees B2/3. . . . . . . . . . . .. . .. . .. . .. . .. . . . . . . . . . . . .Proposed Site Reservation and Special Event Fees B4a. . .. . . . . . . . . . . . . . ... . . . . . . . . . .. . .. . . . .Current/Proposed Festival Equipment /Stages 84b. . .. .. . . . . .. .. . . . . .. . . .. . .. . . . . .. . . . . .Current/Proposed Festival Equipment /Concession Booths B4b. . .. . . . . . . .. . . . . . . .. . . .. . . . . . . . . . . . . . .Current/Proposed Park Festival Equipment Fee Waiver 85. . . . .. . . . . . . . .. . .. . .. . .. . .. . .. . . . . .. . . .Current/Proposed yea Waiver Policy 88. .. .. . . . . . . . . .. . . . . .. . .. . .. . . . . . . . .. . . .Current Admission/Participation Fees 0,11, Policy B6. . . . . . . . . . . . . . . . . . ... . . . .. . .. . .. . . . . . . .Current Special Event Concession 01*1 Permits B0. . . . . . . . . . . . . . . . . .. ... . .. . . . . . . . .. . . . . .Proposed Concession/Admission Fees B7. . . . .. . . . . . . . . . . . . ... . . . . .. . .. . . . . .. . . .Current/Proposed Commercial Photography Fees B8. . . . .. . . . . . . . .. . . .. .. . . . . . . . .. . . . . . . . . .Current/Proposed Bradley Center Fee � 00011� L0FFjCjM&:REC8R0 AV CITY SECRETARY FT. WORTH# " Page Bla ORDINANCE NO. AN ORDINANCE AMENDING SECTION 2-9(a) OF THE CODE OF THE CITY OF FORT WORTH, TEXAS (1986), AS AMENDED, TO CLARIFY THE AUTHORITY OF THE CITY MANAGER AND ASSISTANT CITY MANAGER TO EXECUTE CONTRACTS AND TO AUTHORIZE THE CITY MANAGER AND ASSISTANT CITY MANAGERS TO EXECUTE CERTAIN LEASES WITHOUT THE NECESSITY OF CITY COUNCIL APPROVAL; PROVIDING THAT THIS ORDINANCE IS CUMULATIVE OF ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; AND NAMING AN EFFEC- TIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That Section 2-9(a), "Contract Execution; Change Orders" of the Code of the City of Fort Worth (1986), as amended, is hereby amended to read as follows: "Section 2-9. Contract execution; change orders. (a) A contract in the amount of Five Thousand Dollars ($5,000.00) or less may be executed by the City Manager or desig- nated Assistant City Manager without City Council approval. A contract involving the sale or purchase of real property or the lease of real property for a period in excess of thirty (30) days, regardless of amount, must receive City Council approval before execution. A lease of property involving an amount of $5,000.00 or less and for a term not exceeding thirty (30) days may be executed by the City Manager or Assistant City Manager without City Council approval. Any contract that is proposed to be awarded to a bidder other than the lowest responsible bidder, quality considered, must be approved by City Council before execution by the City Manager or Assistant City Manager. No contract in the amount of more than Five Thousand Dollars ($5,000.00) shall be executed by the City Manager or any other officer of the City government until previous- ly authorized by the City Council. SECTION 2. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (1986), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordi- nances and such Code are hereby repealed. SECTION 3. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are OFFICIAL RECORD CITY SECRETARY FT. WOR�f �, DRAFT Page Bib severable, and, if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 4. This ordinance shall take effect and be in full force and effect from and after its passage, and it is so ordained. 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