The URL can be used to link to this page

Home My WebLink AboutF-3c - Lease Agreement for Lincoln School Gymnasium and Athletic FieldsCITY OF NEWPORT BEACH Parks, Beaches and Recreation Department TO: Mayor and City Council FROM: Parks, Beaches and Recreation Director BY TIE MY CGUNCIJ CITY OF WNWORT BEACH JINN 13 19805 APPROVED January 13, 1986 CITY COUNCIL AGENDA ITEM NO. F`_( G SUBJECT: LEASE AGREEMENT FOR LINCOLN SCHOOL GYMNASIUPI AND ATHLETIC FIELDS Recommendation: Authorize the Mayor and City Clerk to execute a lease agreement with the Newport -Mesa Unified School District for the City's use of the Lincoln School gymnasium and athletic fields. nicriiccion- The Parks, Beaches and Recreation Department has for some time been pursuing the subject lease to enable an efficient self-supporting method of recreational use for this vacant school site that will benefit the community. All terms as specified in the agreement have been reviewed by the school district, the City staff and the Parks, Beaches and Recreation Commission and found to be acceptable. The lease agreement is attached to this communication for City Council review and, for information purposes, an internal departmental memo on proposed fees illustrates the operational costs, revenue, proposed uses and fees for this facility. The staff looks forward to using and improving this valuable community resource for the residents of Newport Beach. Ronald A. Whitley CITY OF NEWPORT BEACH Parks, Beaches and Recreation Department DATE: January 2, 1985 TO: Parks, Beaches and Recreation Director FROM: Recreation Superintendent SUBJECT: Proposed Lincoln School Facility Fees Background With the initiation of City operation of the Lincoln school athletic facilities, it is proposed that the Parks, Beaches and Recreation Department develop an equitable fee structure for permit use. With respect to the provisions set forth in the Lease Agreement between the City and the Newport -Mesa Unified School District, the fee structure will address the following objectives: 1. Provide revenue to offset direct operational costs, including the monthly lease fee, on-site personnel and utilities. 2. Assess possible additional revenue to offset indirect costs which are already budgeted in tax and self-supporting activities. 3. Encourage resident youth participation through sports leagues and City programs. 4. Encourage resident adult participation through self-supporting sports leagues and special interest classes. 5. Accurately assess additional fair market costs for non-resident participants and commercial use. Direct Operational Costs The City will incur specific direct operational costs which are either partially addressed through recreation service fees or not budgeted in the tax supported (7600) activity. As a result, program and facility permit fees should reflect the City's recovery of annual costs which include the facility lease ($12,000), utilities ($12,000) and operations personnel scheduled as needed. Indirect Operational Costs Indirect operational costs are addressed through recreation service fees or included in the tax supported (7600) activity. The additional costs enumerated will be applied to the proposed facility use fees for private non-resident use of Lincoln facilities. Maintenance Supplies $1,000 Maintenance Personnel 3,000 Equipment 2,000 Administration 4,000 Total: $10,000 -2 - Annual Facility Use It is anticipated that the Lincoln facilities will generate approximately 3,500 activity hours annually. This estimation is based on previous years' use patterns for the gymnasium and athletic fields for both City and private activities. The following table illustrates the relationship between projected annual use, direct costs, indirect costs and the hourly costs: Indirect Hourly Facility Hours Utilities *Personnel Lease Costs Cost Gymnasium 1,000 $ 2,000 $9,000 $4,500 $4,000 $19.50 Athletic Fields 2,500 10,000 -0- 7,500 6,000 9.40 w/lights *The cost of personnel may not be factored into the facility use fee for community groups providing their own set up and maintenance. Use/Fee Categories Current City policies recognize five use/fee categories. The use categories and fee structure range from minimum recovery costs to fair market value: Non -Profit Group - Resident and Non -Resident Community based organizations licensed by the Internal Revenue Service or providing a community service. Private Group - Resident and Non -Resident Group or individual use not licensed by the Internal Revenue Service or providing a community service. � _ _ _ _ . _ _ _ -I Any group, organization or concern which is using the facility to conduct business. Lincoln School Fee Schedule Utilizing the accepted use/fee categories and applying the recovery costs as previously developed, the following fee schedule should be applied for permit use of athletic facilities at Lincoln School: Facility Non -Profit Groups Private Groups Commercial Resident Non -Resident Resident Non -Resident Rate Gymnasium $24/9.50 $30/10.50 $67.50/22.50 $70/25.00 $90/35.00 Athletic Fields $20/10.00 $25/13.00 $30.00/15.00 $30/17.50 N/A w/lights Athletic Fields $12/6.00 $15/7.50 $16.00/8.00 $20/10.00 N/A without lights Gymnasium Rate - 3 hours/additional hour Athletic Field Rate - 2 hours/additional hour -3 - The fee schedule outlined compares favorably with previous fee schedules admin- istered by the School District. Newport -Mesa did not develop use/fee categories for resident or non-profit use, thus organizations paid the standard rate which is similar to the private group, non-profit charge. Newport -Mesa did charge less for athletic field use; however, City operation of Lincoln will assure a higher level of field maintenance, thus justifying the slight increase in athletic field fees. Exceptions The Parks, Beaches and Recreation Department must retain the right to approve permits waiving all or part of the proposed fees. Inasmuch as the City works closely with youth leagues and organizations which have used other City facilities to provide a valuable community service, this same principle should be extended to the Lincoln facility. The City may wish to waive the cost of personnel, lease percentage or utilities which were factored into the hourly operational cost of either the athletic fields or the gymnasium. In exchange for waiving fees, groups may be required to provide set up or maintenance services. Protected Revenue Annual revenue generated from activities at the Lincoln facility will include recreation service fees for facility rentals, special interest classes and adult sports leagues. Fees for recreation services are designed to cover direct activity costs as well as indirect facility operation and administration. The following table indicates the projected annual revenue generated from activities scheduled at Lincoln School. Activity Revenue Facility Operations Cost Facility Rentals $11,400 $11,400 Adult Basketball 17,000 7,000 Adult Softball 9,000 4,000 Special Interest Classes 7,000 3,000 $44,400 $25,400 The revenue projection should cover direct operation costs not budgeted for the current fiscal year. However, the projected revenue from facility rental is based on the non-profit rate which does not address indirect costs. As a result, part of the Lincoln operation will continue to be charged to the tax supported (7600) activity so that the non-profit rate may be assessed. The non-profit rate is usually applied to youth community service programs. Recommendation It is recommended that the proposed facility fee schedule for permit use of the Lincoln School gymnasium and athletic fields be approved. The fee schedule accurately assesses all recovery costs and addresses the objectives previously stated. It is also recommended the Parks, Beaches and Recreation Department review specific group use for possible exceptions to the fee schedule dependent upon potential community service benefit. rk Deven