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01-20-2004 - Ridge Rider Arena Fee Schedule• City of West Covina Memorandum AGENDA TO: Andrew G. Pasmant, City Manager ITEM NUMBER B-6i and City Council DATE: January 20, 2004 FROM: Steven L. Samaniego, Interim Community PRaVTED ON RECYCLED PAPER Services Director SUBJECT: RIDGE RIDER ARENA FEE SCHEDULE RECOMENDATION: It is recommended that the City Council approve the new fee schedule as shown in Attachment A for the Ridge Rider Arenas. DISCUSSION: The Ridge Riders (RR) and City of West Covina informal partnership began in 1958, entering into an Agreement in 1985, with the most recent amendment approved in 1995. The Agreement provided that the RR organization conduct programming, monitor the safety of the facility and maintain the facility. The RR assumed the cost of operation, and collected reasonable rental fees to be used toward the operation of the facility. In May 2003, the City purchased the property from the Valencia Heights Water Company. Public Works staff began providing the maintenance of the equestrian center in 2003. On November 12; 2003, the RR presented the City with a letter to terminate their agreement with the City. The City is actively working with RR to transition programming operations to the City. The proposed arena fee schedule (Attachment A) was developed from staff survey, current fees established by RR and provides consistency with other City rental fee standards approved in July 2003. The proposed fee schedule for arena rentals is incorporated in the proposed Maverick - Ridge Rider Operation Plan (Attachment B). The Maverick -Ridge Rider operation plan includes a brief history of the property, community programming objectives and revenue generating strategies to offset the existing operating costs. Attachment C is an aerial view of the arenas. ALTERNATIVES: 1. Adopt the proposed fee schedule 2. Further increase the proposed fees; however, a fee increase may result in out pricing the market, resulting in a decrease in participation and revenues. 3. Decrease the proposed fees, however, this would likely result in a lower cost recovery. FISCAL IMPACT: The Maverick -Ridge Rider Park projected operating cost excluding recreation programming is estimated at $38,500 for landscape maintenance, field renovation and utilities. The projected total operating cost including recreation programming outlined in the operation plan is $70,093. Based on the proposed fees, the recreation programming is anticipated to gross receipts of $50,416. The expected operating cost over anticipated revenues is $19,677, or 72 % recovery with recreation programming for the first year of implementation. The City can only achieve a 72% recovery in the first year because the market will not support higher fees. Therefore, increased fees above market rate could reduce overall participation, which would result in less revenue recovery. COMMISSION DISCUSSION AND RECOMMENDATION: The Community Services Commission reviewed the Maverick -Ridge Rider Operation Plan at the January 13, 2004 meeting. (Comments will be added following the meeting) Prepared by: �gan4f--"L} del M Community Services Manager Reviewed and approved by: Reviewed and approved by: Steven L. Samaniego Interim Community Services Director Thomas Bachman Finance Director Attachments: A Proposed Arena Fee Schedule B Draft Maverick -Ridge Rider Park Operation Plan C Maverick -Ridge Rider Park Site Plan • 9 Attachment A RIDGE RIDER ARENA PROPOSED NEW FEES Regulation, Product or Service Current Fee structure Fees if adjusted by Consumer Price Index (Increase of 20% except if stated otherwise) PROPOSED SCHEDULE OF FEES AND SERVICE CHARGES Ridge Riders Arenas Small Arena (Minimum 2 hours) Not applicable Not applicable $10.00 per hour Show Arena (Minimum 2 hours) Not applicable Not applicable $250.00 per day Pipe Corrals Not ap licable Not applicable $10.00 per day Arena Field Grooming Not applicable Not applicable $65.00 per occurrence Security, chemical toilets, trash receptacle services may be required at the participants expense. I Attachment B> -City. of Test -C-ovin.a.- Commu moty Serpices Department .Maverick -Ridge Rider Pa rk Featuring Maverick Basebaff q7iefd �z Ridge Rider Equestrian Center Draft Nove1mbeV003Background 0 Introduction This document includes the types of programs and services that can be provided from the facility; proposed fees; projected annual operating costs; and a schedule of operating hours. The details regarding the findings are contained in the body of this document. Property Description The City of West Covina leased the property from the Valencia Heights Water Company for recreational purposes since 1958. The City now owns this property described as a 9.5 acre parcel of land .located at 330 South Citrus Avenue between Vanderhoof Drive on the south and Walnut Creek Parkway on the north.. Maintenance & Operation Agreements In anticipation of the City of West Covina .purchase of the Butler property from Valencia Heights Water Company, Community Services staff began reviewing existing agreements with the Maverick Development Group (MDG) and Ridge Riders, Inc. (RR) in January 2002. Staff conducted -meetings with MDG board members and the City of ' West Covina Sports .Council to share existing field uses, policies and procedures, operation plan and suggestions for improvements to the field programming and operations. Community Services Commission Sports Council Subcommittee and staff met with MDG representatives to design a City/MDG public/non-profit partnership to maintain and operate Maverick Field. Through collaborative .efforts, the first West Covina 'Little League Junior Baseball Division began play at Maverick Field in February 2002. Attachment B Ai111 InMarch 2002, MDG decided to dissolve the MDG non-profit corporation. In an effort to not disrupt the operation flow and revenue stream of the field use, MDG and City staff worked closely to transition the field operation. 1i On June 1, 2002, MDG officially dissolved, and donated all equipment assets to the City to maintain the facility. City staff assumed operation of the field consistent with the MDG operations to recover field maintenance costs. Recommended field rental fees were submitted to the Finance Department for the next fee study review by City Council. New fees were adopted in July 2003. The RR and City of West Covina partnership began in 1958. The most recent agreement commenced on June 8, 1987. The agreement states that the RR organization will conduct programming, assume all costs of operation and maintenance, and collect reasonable rental fees to offset the operation of the facility,. Following a facility face-lift of tree trimming, painting and arena footing improvements, Public Works staff began providing the maintenance of the equestrian center in 2003. Staff met with RR to design a new agreement to reflect' the current conditions. For instance,. the City stepped in to provide maintenance, yet the RR are scheduling the programming and collecting rental fees. The goal of the partnership is to increase the revenue base to recover as much of the operating costs as possible. Following 'several Agreement discussions between RR and City staff, the RR Board of Directors voted to terminate the Facility Use Agreement with the City. The City received a termination letter from RR on November 12, 2003. City staff is actively working with RR to transition operations to the City. Attachment B Draft November 2003 ac groan Bd WEST QVINA Key Findings Conclusion The key findings can be summarized as follows: ➢ Maverick Baseball Field has a good rental clientele of youth leagues, ages thirteen and older established. The field is maintained at a higher level than ball fields at multi -use facilities. Rental priority is given to West Covina resident youth teams followed by non-resident youth teams and `adult teams. ➢ Maverick -Ridge Rider Park has several projects in the Capital Improvement Program budget. The park monument sign with irrigation and landscaping is complete. The ..park master plan ($5,000) is on hold. The trash enclosures ($10,000) and miscellaneous park improvements ($100,000) are on hold until the park master plan is developed. Ridge Rider Arena serves as a positive focal point for West Covina and provides a link to the community's rural and equestrian heritage. The facility is well known, in the. Southern California equestrian community for hosting quality family events in an environment shaded with mature trees. ➢ Park safety issues were addressed this year, leading the City to install security cameras, replace arena footing, facility painting, shrub clearing and tree trimming. ➢ The City Maintenance Division has assumed the daily maintenance duties of the park. ➢ Horseback riding lessons are now offered at the park through the city recreation class program. ➢ The park has amenities and space to offer additional programming. 2 The intent of this document is to provide the City Council and the Community Services Commission with information and forecasts regarding a . projected operating cost and recovery strategy. Operation Plan Hours of Operation Maverick -Ridge Rider Park is open to the public seven days a week, 8:00 a.m. to dusk. Arenas and baseball field are available on a rental basis days -and evenings. 1 } Draft Nove&er 2003 J Operation Plan Attachment B Maverick Baseball Field The Maverick Baseball Field is designed for participants thirteen and older. The field consists of home and visitor bleachers, enclosed dugouts, a scorer/announcer booth, snack bar & restrooms. Programming is scheduled through the Recreation Division office. The field is rented to baseball teams primarily for games and tournaments. Potential Revenues Field Rental Peak Use (Feb -July) Avg. Weekly receipts 24 weeks @ $525/week $12,600 Non -Peak Use (Aug -Jan.) Avg. Weekly receipts 20 weeks @ $250/week $ 5,000 Gross receipts $17, 600 Based on current activity the anticipated annual field rental receipts is $17,600. kidge_Rider Equestrian Center The equestrian center has a show arena, trail arena, warm-up arena, holding pens/stalls, a round pen, announcer's stand, registration booth, restrooms, bleachers, cook shack, fire ring, wash rack, and shaded grass areas. The Ridge Riders and staff are working together to transition the , operation, equipment and supplies of the equestrian center. Ridge Rider members are a valuable resource for promoting equestrian activity in West Covina. Nine club activities were conducted in 2003. Staff is posting monthly schedules at the facility to inform the public when events are scheduled at the arenas. Recreation Services staff is compiling the 2004 calendar arena schedule. Proposed Proerammin Horseshow Rentals Special Events Horsemanship Classes Horseback Riding Classes Summer Camps Canine Obedience Classes (all levels) Canine Agility Classes Dog Show Rentals Family Picnic Rentals Animal Vaccination Clinics' raft November 2003 Opefation'Plant. Potential Revenues Horseback Riding Classes (4wks) No. of Classes per week No. of Sessions per year No. of participants per class Fee per participant per class Gross receipts 65135 split to Citv Canine Classes (6wks) No. of Classes per week. No. of Sessions per year No. of participants per class Fee per participant per class Gross receipts - 65135 split to Citv Specialty: Day Camps (1 wk) Youth Equestrian No. of Weekly Camps per year No. of Participants per class Fee per participant per class Gross receipts 65135 split to City ianship Classes (3wks) No. of Classes per week No. of Sessions per year No. of Participants per class Fee per participant per class Gross receipts . 65135 split to City Staffing Levels Attachment S. WEST 0VfNA 4 Existing fulltime staff supervising recreation class 3 programs and facility rental programs will be $141 responsible for generating the revenues outlined in $13,536 this operation plan. Ridge Riders will continue to'be $ 4,737 a resource to staff and host their club events. Five hundred limited service staff hours are included. in the operation plan to reflect on -site supervision. 2 4 10 $55 $4, 400 $1,540 4 12 $160 $7, 680 $2, 688 1 6 10 $65 $3,900 $1,365 Show Rental Ptogram No. of Rentals per year 10 Average Daily Rental $330 Gross Receipts $3, 300 Anticipated Gross Receipts for Ridge Rider Equestrian Center. $32,816 Total Anticipated Gross Receipts Maverick Baseball Field $17,600 Ridge Rider Equestrian Center $32,816 $50,416 4 Yearly OperatinLz Costs Obleet Code Amount 5112-Limited Service Salaries 5,410 5124-Sick Leave 5151-Worker's Comp 162 5152-HealWlex Benefit 5155-Medicare 78 5156-Unemployment 5 5157-Retirement 6011-Uniforms 200 6020-Education 6120-Contract. Services 23,500 Landscape Maintenance, Field Renovation, Rentals 6120-Instructor Services 15,500 6140-Utilities 15,000 6210-Oilice Supplies 6240-Supplies 1000 6330=Equipment M & R 2,500 6410-Propergy Liability 600 6493-Adminstration/Overhead 300 6999-Non-Capitol Equipment 2,500 7120-Office Equipment 7160-Other Equipment Projected Operating Costs: $ 66,755 Contingency (5%) 3,338 Grand Total: $ 70,093 Anticipated Gross Receipts $ 50,416. Projected Operating Costs Over Anticipated Revenues: $19,677 (72% Recovery) fir, `� f a..,+ � _ � _ � _. I '� � , F •. - �l `ter . - "� J .4101 r3 �' _-�„� �rfl G��_ 7 --� ,-ram "� Ci1'✓'• q�t IN �� •. O '�. .+�„t' "'Cyr ' -� �r J L � '• � „ti t i �� � � iN Wat pw Al l _ 43 M : f ,.11 t gay. � _ ,•�/�y 7'!"' ..urt:, �`. '°. � , _.. ... , � _ . :..T•j ('"wy-,, •jay _ s' L Vo �' d 6LEl.�-MAM 0 3 :,f.�-;��". 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