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HomeMy WebLinkAbout13.A.1. Park and Recreation Fee Analysis /3. A . CITY OF SHAKOPEE Memorandum TO: Mayor and Council Mark McNeill, City Administrator FROM: Jamie Polley, Director of Parks, Recreation & Natural Resources SUBJECT: Park and Recreation Fee Analysis DATE: November 7, 2007 Introduction Council is asked to consider a proposal from Springsted Inc. to do a fee analysis of the Park and Recreation Fees and develop a Report of Findings including recommendations for those fees. Backaround The 2007 budget allocated funds to complete a fee analysis for the Parks and Recreation Department. This section of the study would carry on the City's development and building fee study to determine the costs associated with providing the City's parks and recreation services, including outdoor facilities. Once the costs are determined, the Advisory Board and City Council can use this information to make policy decisions regarding the amount of cost recovery the City wants to achieve in setting fees. Springsted's role would be to compare the total costs of providing Parks and Recreation Services to the current fee schedule for 2007. Springsted will meet with the Parks and Recreation staff to collect data and calculate a projected cost recovery ratio for the current user fees. The computer model that was previously designed for the City of Shakopee will be used to develop a "benchmarked" cost schedule for each service. A Draft Report of Findings will be presented to the City including recommendations. A copy of the proposal is attached. The Council is reminded that Springsted did a similar fee analysis relating to the BA TC lawsuit. The process would take about 10-14 weeks-that would provide a response that would be insufficient to negotiate any fee changes with the townships, should those be necessary, for FY 08, as the Townships set their budgets in the Spring. It would therefore mean that the city would start any such negotiations for FY 09. Budaet Impact The proposed fee to complete the study is a lump sum fee of $25,530 plus out-of-pocket expenses such as copying and travel, payable as work progresses. This amount includes up to two on-site meetings. Funding would come from the Recreation Fund - Professional Services account which currently has a balance of $40,190 available out of $46,400 budgeted. Requested Action Discuss and give staff direction to proceed with the Parks and Recreation Fee Analysis using Springsted Inc. Relationship to Vision A. Active and Healthy Communities, and E. Financially Strong Jamie Polley Director .. ted ring City of Shako pee, Minnesota Park and Recreation Fee Study Work Plan October 2007 Objective(s) The purpose of this study is to assist the City of Shakopee in evaluating its Park and Recreation Fees to determine the total cost of providing the services supported by these fees. The total costs will be compared with the current fees for each service included in this study. The fees to be included within the scope of this study are those Park and Recreation fees listed on pages 21 through 26 of the City's Fee Schedule for 2007. Task I . Review Background Information >> Meet with City to review background information and analyze Study assumptions by reviewing: - The user fee system and charges for park and recreation fees currently in place - All current revenue policies, both written and implied, especially those related to establishing and adjusting user fees and charges - Historical information related to the City's user fee system and charges for park and recreation fees - Current allocation of overhead and other indirect costs to user fees and charges - The current fiscal year budget and past year's actual expenditures, as they relate to park and recreation fees and charges for services - The City's current policy related to paying and/or reimbursing for training and continuing education for staff providing services which a park and recreation charge has been established Task II. Data Collection >> Meet with Park and Recreation department heads and staff: - Interview department heads and appropriate Park and Recreation staff determining time and resources allocated to providing overhead/administrative functions and services to other funds/entities - Interview department heads and appropriate Park and Recreation staff determining the time and the resources allocated in providing services: . Review current list of Park and Recreation fees and charges and the most recent cost allocation plan(s) established . Identify specific services provided, which the department contributes time or resources . Estimate the average time and resources to provide each service . Identify any training and/or continuing educational requirements for providing the service . Identify overhead and indirect costs associated with providing each service - Review preliminary findings with appropriate staff >> Calculate projected cost recovery ratios for current user fees, and prepare comparative analysis - City of Shakopee, Minnesota Park and Recreation Fee Study October 2007 Page 2 Task III . Data Analysis ~ Using the computer model we previously developed for the City we will: - Develop a "bench marked" cost schedule for each service including . Amount of time each employee devotes . Direct salary cost for each employee . Related personnel costs for each employee (e.g., fringe benefits, vacation, sick leave costs, etc.) . Related supplies consumed in providing the service . Related training and/or continuing education costs . Related indirect administrative and overhead costs, including the total cost for each service Task IV . Present and Review Draft Report of Findings ~ Springsted will prepare a Draft Report of Findings that will contain our findings and recommendations. We will provide fifteen copies of the Draft Report to the City. ~ We will meet with City to review and discuss the Draft Report in a workshop session ~ Based on our discussion and review of the Draft Report Springsted will make modifications or changes, incorporating the City's comments into the final report as appropriate Task V. Present and Review Final Report of Findings ~ Springsted will present the Final Report of Findings in a City Council regular or workshop session ~ We will provide fifteen copies of the final study plus one reproducible copy in PDF format Project Team The Springsted project team will consist of MCS Director Nick Dragisich, Analyst Matthew Stark, and Consultants George Splicahl and Dave Carlstrom. George was with the Saint Paul Finance Department and Dave has been an accountant for public sector and private sector organizations, as well as the Chisholm city administrator. They are currently working on similar projects with the Cities of Sioux City and Dubuque, Iowa. Expectations In order to conduct this study, the City will need to designate a staff memberto serve as a project manager. This person will be responsible for assisting Springsted with gathering accurate and timely data needed to complete the project and to assist in arranging for required meetings. At a minimum the following information will be needed to complete the study: Park and Recreation Fee Study Required Information > Most recent cost allocation plan(s) for Park and Recreation fees ~ Salary and benefit information for all employees including, but not limited to, annual wages, benefit structure, workers' compensation rates, etc. City of Shakopee, Minnesota Park and Recreation Fee Study October 2007 Page 3 ~ Copy of the City's current Park and Recreation fees and charges (to be included in this study) ~ Historical information related to the City's Park and Recreation user fee system and charges for services, including actual revenues and frequencies, by fee type ~ The current method of allocating overhead and other indirect costs to Park and Recreation user fees and charges ~ The City's current fiscal year budget and past year's actual expenditures ~ The City's current policy related to paying and/or reimbursing for training and continuing education for staff providing services which a Park and Recreation charge has been established ~ Other relevant information Compensation We propose to complete this study as described in this proposal for the lump sum fee of $25,530 exclusive of any out-of-pocket expenses such as travel and copying. This amount would include up to two on-site meetings. We will complete the study within 10 - 14 weeks of receiving the notice to proceed, provided that all necessary information is made available to Springsted in a timely manner and that City staff is available for required meetings. This draft schedule does not anticipate any unforeseen delays or other circumstances that would result in a later completion date. Should any unforeseen delays or circumstances arise, Springsted can draw on its staff of 70 professionals to keep the project on schedule to the greatest extent possible. Springsted would invoice the City for work completed based on the following schedule: Completion of Task III 50% ~~EI12Ietion of Task IV ' 40% 1--- 90% -+----_--L Completion of Task V ! 10% ! 100% Should the City request and authorize additional work outside the scope of services described in this proposal or additional revisions beyond those agreed upon at the discussion and review of the draft report and preliminary model, we would invoice the City at our standard hourly fees. Title Rate Principal & Senior Officer $210 Officer & Project Manager $180 Senior Associate $150 Associate $135 Support Staff $60