55C - RESO APPROVING COST RECOVERY

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 17, 2020 TITLE: ADOPT A RESOLUTION APPROVING THE COST RECOVERY POLICY FOR THE PARKS, RECREATION AND COMMUNITY SERVICES AGENCY CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1 sl Reading ❑ Ordinance on 2od Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO /s/ Kristine Ridge FILE NUMBER CITY MANAGER RECOMMENDED ACTION Adopt a resolution approving the cost recovery policy for the Parks, Recreation and Community Services Agency. DISCUSSION On September 15, 2020, the City Council received and approved the Parks, Recreation and Community Services Agency (PRCSA) Service and Financial Sustainability Study. Through the action of receiving and approving the study, and a strategy for implementation of recommendations, the City Council accepted the use of the tools, methods, and strategies the Parks, Recreation and Community Services Agency (PRCSA) requires to sustain itself for the long- term. The PRCSA does not have a current cost recovery policy. Until now, there has not been a full understanding of cost recovery concepts, and there is inconsistent application of program and service costs. There is lack of adequate philosophy based on the mission of the PRCSA to establish adequate and non -conflicting cost recovery targets. The proposed policy (Exhibit 1) sets forth the underlying principles of the Cost Recovery Philosophy and service pricing approach. Key elements include the following: 1. Basic level of service is "free" (supported by tax revenues) 2. Fees are a responsible and necessary supplement 3. Community benefit — Use of tax dollars 4. Individual benefit — Use of fees S. Greater individual benefit — lower rate of tax subsidy 6. The policy considers economic climate, alternative providers, and market rate 7. Fee reductions available for economic need 55C-1