Update of the Pricing Policy and Revenue Plan

September 2013

City of Las Vegas Parks, Parks, Recreation & Neighborhood Services

Update of the Pricing Policy and Revenue Plan | DRAFT Report

Acknowledgements
To Be Determined by the City

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City of Las Vegas Parks, Recreation and Neighborhood Services

Table of Contents
- EXECUTIVE SUMMARY ..............................................1
1.1 1.2 1.3 1.4 1.5 1.6 INTRODUCTION ...................................................................................... 1 DATA REVIEWED ..................................................................................... 1 KEY FINDINGS ........................................................................................ 2 KEY REVENUE AND PRICING RECOMMENDATIONS .............................................. 3 PRICING POLICY ..................................................................................... 5 CONCLUSION ......................................................................................... 9

- ORGANIZATIONAL ASSESSMENT ................................ 10
2.1 STAFF AND STAKEHOLDER INTERVIEWS ........................................................ 10 2.2 “ARE WE MAKING PROGRESS” ASSESSMENT ................................................... 17 2.3 RECOMMENDED RE-ORGANIZATION ............................................................. 26

- PRIING PHILOSOPHY ........................................... 28
3.1 3.2 3.3 3.4 3.5 3.6 PRICING PROCESS .................................................................................. 28 CLASSIFICATION OF SERVICES .................................................................... 30 PRICING PHILOSOPHY ............................................................................. 32 PRICING RECOMMENDATIONS .................................................................... 33 MARKET PRICING COMPARISON .................................................................. 34 THEMED COMMUNITY CENTERS .................................................................. 43

- FINANCIAL MODELING .......................................... 44
4.1 COST OF SERVICE MODEL ......................................................................... 44 4.2 REVENUE STRATEGIES ............................................................................. 47 4.3 FUNDING OPTIONS ................................................................................. 49

- CONCLUSION AND TRANSITION PLAN ......................... 59

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Update of the Pricing Policy and Revenue Plan | DRAFT Report

- EXECUTIVE SUMMARY
1.1 INTRODUCTION
PROS Consulting worked with the staff from the City of Las Vegas Parks, Recreation and Neighborhood Services Department (“Department”) to develop an update to the Pricing and Revenue Plan. For the Department to move forward, it is important that these support services keep pace with the growing population’s needs and wants and the financial sustainability goals for the City. Currently, the City of Las Vegas is closing in on a population of 600,000, and the Department has a tremendous responsibility to provide quality parks and open spaces, recreation facilities, programs and neighborhood services for the community. It goes without saying that the opportunity to offer high quality offerings is dependent on available resources and the ability to generate newer ones. It is foreseeable that the economic diversity in the community and the Department’s mandate to ensure equity of service puts additional pressure on pricing policies and cost recovery goals. It is recognized that fiscal management including, cost of service studies, earned income opportunities and revenue and pricing policies are some of the key components that will enable the Department to meet its long term vision and short term financial goals. A project such as this required the City and the Consulting Team to work as a single team, not one where the consultant works in a vacuum. Sound data collection, constant client-consultant communication and wide spread staff input were vital to ensure in-depth understanding and analysis of the situation. The project’s philosophy sought to translate the Department’s financial vision into objective revenue goals, strategies and performance measures that drive superior organizational performance while meeting the financial structural needs of the city established by the city manager’s office . Additionally, the ability to generate a collaborative approach including the elected officials, and other City departments is essential to ensure buy-in and successful implementation of the recommendations. This final product should be viewed a living document and decision making tool to support effective and immediate implementation of recommendations. This includes but is not limited to the following:  Recommended Pricing Philosophy, Financial Cost of Service Modeling for all programs and facilities managed by the Department, and Revenue Strategies to grow revenue to support operational and capital costs Recommended financial policies to the insure financial viability of the City for parks, recreation facilities, programs and neighborhood services , both short term and long-term Recommended financial and operational procedures to continue to update and assessment the financial status of the City’s programs and service after this project is completed Tactics to manage short term gaps in revenues and expenditures Methods to ensure staff input and involvement in the process Implementation plan to support a successful transition to a new pricing philosophy and methods

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1.2 DATA REVIEWED
As part of the Revenue Plan and Pricing Study, PROS Consulting reviewed the following information:   Financial Aide Fund Policy Performance Plus Results 1

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General Fund Budget and Philosophy 2013 Budget and Worksheets Recreation League Surveys Volunteer Program Policy Cash Handling Procedures Organizational Structure Performance Goals and Objectives Audit of Leisure Services and Sports Fields Strategic Business Plan Service Fee Waiver Policy Fitness Aging Equipment Report

This information along with focus group meetings and key stakeholder interviews provided the basis for many of the recommendations outlined in this report.

1.3 KEY FINDINGS
 PROS Consulting prepared a pricing and revenue plan for the Department in 2008 prior to the recession beginning but implementation of the recommendations did not occur because of the recession including numerous staff layoffs, budget reductions within the Department and restructuring of city services. Parks and Recreation Services and Neighborhood Services Departments were combined in 2010 which has not resulted in the level of unity expected as both merged departments see little value in these services combined as their customer service and operating philosophies are highly different which creates a dysfunctional work unit that appears to be not working as expected. This has resulted in a lot of wasted energy for both departments. The Department has revenue capacity capability to support their operational budgets and the structural budget of the city but it will require the city leaders to allow the Department to move forward on key pricing changes that can support the city managers desired outcomes for the city without negatively affecting the users of the services. The Department has a high level of bureaucracy for a system of its size with a lot of oversight due to miss-trust of the Department employees that appears to be unnecessary. The Department has a low level of moral and energy due to the fact that staff feel unappreciated and undervalued even though they are enormously skilled. The Department has some level of cost of service tracking that is working well but full accountability of all costs is not in place to determine the level of cost recovery desired. Department communication and trust is not at a level it should be to energize the staff to maximize its revenue capability and efficiency. Key recommendations from the 2008 Revenue and pricing study were not implemented but are still desired to include the implementation of an effective cost recovery pricing policy, 2

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Update of the Pricing Policy and Revenue Plan | DRAFT Report

appropriate pricing of services based on pricing criteria of core essential, important and value added services.

1.4 KEY REVENUE AND PRICING RECOMMENDATIONS
1.4.1 ADMINISTRATION RECOMMENDATIONS  Track cost and user data consistently to make sound pricing decisions.    Upgrade data tracking systems to track cost and user data accurately in a timely format. Develop true cost of service information to determine cost recovery goals and track unit costs. Seek City Council approval of an updated pricing policy that establishes cost recovery goals for all core programs and facilities the Department manages. Allow the City Manager’s office with Department staff to establish appropriate user prices for services based on the structural budget needs of the city. Inform City Council that prices will be set to achieve cost recovery goals with ranges of prices based on prime time and non-prime time and based on classification of services which are public, merit and private services. Incorporate automatic pricing escalators for prices each year to cover cost increases for utilities, staffing, supplies and equipment requirements to deliver services. Hire appropriate staff to meet cost recovery goals established by the City Manager’s office. Track performance outcomes of all programs and service and report quarterly to the City Manager’s office. Develop a self-funded scholarship program for youth in the city. Create new earned income opportunities through the Business Development office of the Department to help offset operational costs. Earned income opportunities could include sponsorships, advertising, increased partnerships, grants, retail sales, concessions, and development of a Parks and Recreation Foundation. Implement the recommended organizational structure outlined in this Pricing and Revenue Study. Develop a true Business Development office for the Department that focuses on business plans for signature facilities and programs, earned income development, foundation development, grants and cost of service tracking working with field staff. Eliminate the large amount of bureaucracy within the Parks, Recreation and Neighborhood Services Department as it applies to reservations and permits to access facilities.

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1.4.2 FACILITY PRICING RECOMMENDATIONS  Develop true cost of service for each facility managed by the Department.  Determine competitor and other public service providers prices based on similar facilities and services to determine price elasticity in the market before determining prices for exclusive use of city owned facilities based on prime time and non-prime times. Set fees for exclusive use of pavilions (merit service) and increase prices by $25 dollars a rental from $50- $100 dollars a rental to $75-$125 rental based on the size of the pavilion rental. 3

Update of the Pricing Policy and Revenue Plan

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Increase staff costs for special events from an average of $22-$44 dollars per hour to a flat $55 dollars per hour (private service). Increase rental rates of community center meeting facilities and gym space for exclusive use (private service) from $10-$190 an hour to $30-$250 dollars an hour based on the type of program being provided in the facility. Increase pool prices from $1-$2 dollars per hour to $2-$4 dollars per hour (merit service). Increase fee based classes for all users including seniors from an average of $20-$40 dollars to $30-$50 dollars a class or month depending on the program (merit) service. Increase SAFEKEY annual registration fee from $10 dollars to $20 dollars (merit service). Increase Daily pass fees from $5-$8 dollars to $7-$10 dollars Increase annual membership rates from $2 to $24-$36 dollars membership (merit service) for senior centers. Build in marketing costs into prices for facilities and services to let the community know what services are available to them. Theme Recreation Centers to maximize the productivity of use and broaden the service opportunities to a regional level (15 minute drive time). Make unproductive facility space productive via stronger programming at each site. Consider the development of a future field house for creating sports tourism opportunities as well as serve the local market in basketball, volleyball, cheerleading, wrestling, soccer, Lacrosse, baseball, and fitness challenge events. This is similar to the soccer complex developed by the city. Update all fitness equipment at the recreation centers and increase monthly pass prices to reflect the new value associated with the new equipment.

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1.4.3 OPERATIONAL EFFICIEN CY RECOMMENDAT IONS  Develop specific business plans for signature programs and facilities to maximize their revenue capability and to manage their cost more effectively.         Update all polices including fee waiver policy, partnership policies, and earned income policies. Go back to a five day work week for staff to deliver better service in the field. Allow all full-time staff to access the data system. Allow staff to make decisions in the field as it applies to refunds to be more customer focused. Eliminate entitlement groups over a three year period. Teach and train staff on how pricing of services works and how to communicate pricing to users based on cost and classification of services. Track partnership equity and cost of service and negotiate yearly partnerships based on the outcomes and cost desired. Outsource to private businesses unproductive spaces in facilities. 4

Update of the Pricing Policy and Revenue Plan | DRAFT Report

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Establish a youth sports association to maximize fairness and use of sports facilities in the city. Institutionalize throughout the Department the Strategic Business Plan developed in 2013 and teach and train staff to the focus and performance indicators outlined in the plan and report out quarterly the results to the City Manager’s office.

1.5 PRICING POLICY
The following pricing policy was developed to provide the City Manager and Department a format to seek City Council Approval for implementing the recommendations in this Pricing Policy and Revenue Plan. The Policy follows the process for developing and implementing cost recovery goals for the Department and each core service as well as how to price services for the future. SUBJECT: CITY OF LAS VEGAS PARKS, RECREATION AND NEIGHBORHOOD SERVICES DEPARTMENT PRICING POLICY

Approved

Date

COUNCIL DISTRICT: City Wide

SUBJECT: ACCEPTANCE OF REPORT ON PRNS PRICING AND REVENUE POLICY RECOMMENDATION The City of Las Vegas Department of Parks, Recreation and Neighborhood Services recommends to City Council (1) review of program cost recovery goals; (2) acceptance of the Pricing and Revenue Policy (3) Provide Direction to City Staff to return to Council annually for approval of the cost recovery goals and part of the Fees & Charges portion of the annual operating budget process. Full consideration of staff’s recommendation by the City Council on September 2013. OUTCOME The review and acceptance of the Pricing and Revenue Plan and Policy will provide a mechanism for allocating public funds, creating a financially sustainable approach for recreational services and facilities, maximizing the use of programs and facilities and ensuring affordable access to programs and services. Specifically the Policy will:    Establish Parks, Recreation and Neighborhood Services (PRNS) cost recovery goals and guiding principles Expand City Manager authority to set all program fees consistent with the Pricing and Revenue Policy and needs of the City’s Structural Budget. Authorize PRNS staff to establish a Self-funded scholarship program to assist in affordability for all residents.

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Update of the Pricing Policy and Revenue Plan

BACKGROUND The City of Las Vegas has traditionally offered parks and recreation programs and services at costs well below market value for many programs and services. Traditionally, City fees have been priced low to accommodate the percentage of residents who cannot afford to pay market rate. As a result of this, the City has lost an opportunity to charge market rate to customers who can afford to pay and the general fund has been forced to subsidize nearly 60% of the PRNS’ programs and services. In order to become more financially sustainable and align with the Mayor and City Cou ncil’s goal to eliminate the structural budget deficit and provide full funding for parks, pools, community centers and program services; PRNS initiated a updated pricing and revenue plan in the spring of 2013. In July of 2013 PRNS presented Pricing and Revenue recommendations, goals, objectives and next steps to the City Council for their review and input. As directed on March of, 2013 in the City Managers 2013-2014 budget message, PRNS has begun the development of a financially sustainable pricing and revenue model to preserve existing recreation programs and services. The Department has taken a pragmatic approach to ensure PRNS’s long -term success. The Pricing and Revenue Plan and Policy and guiding principles provide a framework and methodology to minimize program and service reductions while maintaining quality parks and recreation services for our residents. ANALYSIS The overall cost recovery rate, the percentage of revenue collected against PRNS’ operation budget, is approximately 40%. Many other large urban municipalities of similar size, demographics and socioeconomic diversity have cost recover rates that range from 40% to 60%. Since fees recover only 40% of PRNS’s costs, the 60% subsidized by the general fund is subject to dramatic fluctua tions depending upon the economic situation. By becoming financially sustainable through charging appropriate fees, PRNS can become less dependent upon fluctuations in the general fund and ensure that resources can be available to maintain and/or enhance programs or services. When low cost recovery rates are coupled with budget reductions, the options include program elimination, program reduction or a shift in pricing to allow customers to invest in and then maintain the service. The City Manager currently has limited authority to set user fees for programs such as leisure classes for adults, seniors and youth, youth sports leagues, camp fees, SAFEKY and aquatics classes (other than summer). These programs currently generate 40% of the total department revenue. Building on our existing strengths, and expanding the City Manager’s authority to set all PRNS user fees will increase the Department’s ability to respond to market trends and community needs. It will also ensure that the Department can generate optimal cost recovery by program while continuing to have scholarship programs available for certain segments of the population. The Pricing and Revenue Plan and Policy guiding principles provide a framework and methodology to PRNS pricing. The five guiding principles in the policy are as follows:     Identify the Level of Benefit a Customer Receives based on Classification of Services Calculate Cost of Service Based on Direct and Indirect Costs Determine Cost Recovery Goals Desire by Core Service to Support the Structural Budget of the City Ensure Affordable Access 6

Update of the Pricing Policy and Revenue Plan | DRAFT Report

Create Revenue Strategies and Prices to Meet the Outcomes Desired

Further details on the guiding principles are included below. 1. Identify the level of benefit a customer receives Before determining the appropriate cost recovery goal for a program, it is first important to determine the level of benefit that the customers, and the community at large, receive from the program. These levels of benefits are defined as public, merit or private services and categorize the level of benefit received by the community and individual in parks and recreation programs as follows:   Public services have the highest level of community benefit and are highly subsidized. For example trails and parks are general fee to access for anyone Merit services include a community/public benefit and an individual/private benefit. Swimming lessons address a health and safety concern and provide a community benefit. There is an individual benefit by the participant gaining a new skill. Merit programs have a cost sharing model that includes a subsidy and partial cost to the participant. Private services have an individual/private benefit with minimal to no community/public benefit. For example, adult piano lessons have an individual/private benefit with minimal benefit to the public. Private services have minimal to no subsidy and costs are paid for by the participant.

PRNS has begun a rigorous process to determine the direct and indirect costs associated to each program and service. Cost of service and how we calculate……Based upon the level of benefit received and the cost of service, a cost recovery goal will be determined. 2. Calculate the cost of service 3. Determine cost recovery goals 4. Ensure affordable access PRNS recognizes that not all Las Vegas residents have the ability to pay the full cost for services. The Department currently partners with numerous advisory groups, individual donors and grantees to offer scholarships and reduced program fees to our customers. In addition, the Department will implement a City Wide Scholarship program to ensure affordable access. Further funding to support the scholarship program will come from 3% of revenue collected by the Department to create a self-funded scholarship program. 5. Create Revenue Strategies Two key strategies are used in pricing and revenue; earned income and diversified pricing methods.  Earned income strategies generate revenue, outside of pricing, to offset operating costs for the Department or program. The Department will be implementing a variety of earned income strategies including, but not limited to; sponsorships, partnerships, grants and foundation development. Diversified pricing methods such as; prime/non-prime time rates and weekend/weekday/evening rates, ensures fairness to the customer and encourages users to move to an option that best accommodates their schedules and price points and promotes community use of facilities during off-peak hours, which generates additional revenues and reduces the net cost of operating a facility. 7

Update of the Pricing Policy and Revenue Plan

CONCLUSION PRNS cost recovery rate is approximately 40%. The Department recognizes that parks and recreation are a valuable social service to the community and include a range of general fund subsidies. The goal of PRNS is to increase the cost recovery rate to approximately 50% over the next five years to minimize the Department’s reliance on the general fund and maintain quality recreation programs and services that uphold the best interest of the community. The PRNS Pricing and Revenue Policy and guiding principles focus on the development of creative solutions to ensure that our residents can continue to enjoy properly maintained parks and community centers. If we do not continue to implement fundamental changes toward how we operate, PRNS programs and services will need to be reduced or eliminated. EVALUATION AND FOLLOW-UP On November 20 and December 3 of 2008, PRNS staff conducted Pricing and Revenue Plan community meetings with key PRNS stakeholders and user groups. Those included; sports, aquatics, seniors, park advocates, after school recreation, Strong Neighborhood Initiative, community center and teen center users. Discussions focused on Pricing and Revenue Plan background and objectives, identification of levels of benefit, pricing methods, scholarships and strategies on future stakeholder meetings. Throughout February 2009, eleven community meetings were conducted within each Council District on the Pricing and Revenue Plan. Attendees included; sports, aquatics, seniors, community center and teen center users, park advocates, after school users, neighborhood association representatives, advisory groups, SNI representatives and department partners. Discussion included; Pricing and Revenue Plan background and objectives, future pricing methods, cost of service and scholarship. The community provided feedback on all the components listed above and was generally in favor of developing new pricing methods for PRNS programs and services. COORDINATION This memo has been coordinated with the City Attorney’s Office, The Budget Office and the City Manager’s Office. COST SUMMARY/IMPLICATIONS There are no additional costs associated with this report. Lonny Zimmerman Assistant Director, Parks, Recreation And Neighborhood Services

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Update of the Pricing Policy and Revenue Plan | DRAFT Report

1.6 CONCLUSION
The Parks, Recreation and Neighborhood Services Department has a great history of providing excellent services to the residents of Las Vegas. Over the last five years there have been many changes to the Department that has disrupted the culture of the organization and the moral of the staff tremendously. This has created a very negative work environment for the staff. The Pricing Policy and Revenue Plan has evaluated the culture of the organization to change its ability to support the City’s Structural Budget requirements and has created many recommendations that can change the direction of the Department to become more self- sufficient while still providing excellent customer service in a positive work culture. These recommendations are outlined in the Plan and focuses on the following:       Organizational Design and Communications Recommendations Data Tracking and Cost of Service Assessment Recommendations Pricing Recommendations Development of a Pricing Policy Development of Earned Income Opportunities to Offset Operational Costs Action Plan to Achieve Success

There is no question about the Departments capability to meet the recommendations. It will require the support of the City Manager’s office and City Council to make these recommendations a reality. The Department has great park and recreation professionals that are capable of leading the Department through the process given the opportunity. Great Challenges when met lead to great results. The City Manager has outlined five key strategies for staff to follow:      Our Core Purpose: Build Community to Make Life Better Business Definition: We Run The City Core Vales: Action Strategic Anchors: Sustainable, Iconic, and Service Value Thematic Goal: A common issue to work toward

The Department can meet these goals if allowed to implement the recommendations in the Pricing Policy and Revenue Plan. The Department can make life better for users of the system. They can provide great parks, facilities and services to residents and visitors of the city. They can put these recommendations in Action immediately, they can become more Sustainable, Iconic and provide Service Value. They can support a Thematic Goal: A common issue to work toward in meeting the outcomes desired by the City Manager and City Council. Now is the time to recapture the Vision and Mission of the Department: Our Vision is to be “A world-class, vibrant, affordable, economically and ethnically diverse, progressive city where citizens feel safe, enjoy their neighborhoods and access to city government”. Our Mission is to provide recreation, education, neighborhood resources and human services to residents, visitors and businesses so they can enjoy a higher quality of life that promotes healthy lifestyles and engaged and sustainable neighborhoods. 9

Update of the Pricing Policy and Revenue Plan

- ORGANIZATIONAL ASSESSMENT
2.1 STAFF AND STAKEHOLDER INTERVIEWS
The City Manager posts weekly blogs regarding building healthy organizations and how critical it is to achieve success. The concepts she outlined includes:      Our Core Programs: Building Community to Make Life Better Business Definition: We Run The City Core Values: Action Strategic Anchors: Sustainable, Iconic and Service Value Thematic Goal: Increase revenues by 5 percent (February through August 2013)

These concepts are excellent but as part of the Pricing Policy and Revenue Plan the Consulting Team felt it important to access the organization’s capabi lity and culture to achieve revenue. The following information demonstrates that the culture inside of the Parks, Recreation and Neighborhood Services needs improvement to meet the expectations of the City Manager in the five key statements outlined. As part of the planning process, staff interviews and focus groups (10 focus groups with approximately 40 staff members) were completed to gauge the staff’s desired outcomes and goals for the updated pricing and revenue plan. Stakeholder interviews were held with the City Manager and key staff leadership. Focus groups were with the various staff divisions in both Parks and Recreation Services and in Neighborhood Services. Key issues were identified that needed to be addressed to determine the key values the staff would like to be managed by for the future. This helped the Consulting Team to determine where to place their key recommendations to meet the pricing and revenue goals for the Department. It needs to be noted that very little participation in this process came from the Neighborhood Services Division within the Department even though they were invited into the process. 2.1.1 GOALS TO SUCCESS AS IDENTIFIED BY THE PARKS, NEIGHBORHOOD SERVICE S STAFF  Strong visibility and a positive work culture while doing their jobs           Connectivity to each other via appropriate planning processes Supportive at all times by their direct supervisors Training on all levels to improve on their management skills Positive Communications upwards and downwards in the Department Teamwork throughout the Department Recognition for work done well Data management – consistent and timely Trust by Administration of the work that they perform Best practices are instituted throughout the Department Cost recovery goals are met and appreciated by upper management 10 RECRE ATION AND

Update of the Pricing Policy and Revenue Plan | DRAFT Report

Pricing of services are classification and market based not politically based

2.1.2 VALUES IDENTIFIED BY STAFF FOR THEIR DEPARTMENT TO INCORPORATE INTO THEIR DAILY WORK PRACTICES  Pride in the services we provide             Proud to work for our Department and City Honesty/trust/integrity Respect Accountability Leadership Communication Satisfaction Customers Community impact Quality Other people’s opinion Focus

2.1.3 WHAT DOES AN IDEAL PARKS, RECRE ATION AND NEIGHBORHOOD SERVI CES SYSTEM LOOK LIKE?  Flexibility by staff in doing their jobs and still achieving their goals              Do not manage the Department from a defensive position Outcome based focused versus effort based focused Proactive not reactive Visionary Sharing the “why” behind directives given to the staff by upper management Training opportunities that keeps the staff focused on being a cutting edge Department Team focused system versus individual focused employees Growth opportunities within the Department for staff advancement Rewards for a job well done in meeting city leadership expectations Know you are capable of making a difference Know what the cost recovery goal is for the department and allow us to get there Business plan focused with business plan principles in place Know what true direct and indirect costs are for all services and facilities we manage 11

Update of the Pricing Policy and Revenue Plan

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Annual incremental price increases Staff evaluations done on an appropriate timely basis Do not subsidize private contractors Pay raises for meeting performance outcomes desired by Administration Alternative funding alternatives put into place Equitable partnerships are in place Proactive in their work World class Department that is respected in the city and outside of the city Dynamic staff, facilities and services Flexible and accountable staff Dedicated work force Creative is allowed and appreciated Customer driven focus by all people working in the Department Leaders in the parks and recreation industry Business model with social aspects applied Award winning Department on a state and national level Team oriented throughout all levels of the system

2.1.4 DESCRIPTION OF THE WHAT THE DEPARTMENT W OULD LIKE TO BE KNOW N FOR  Innovation        Top quality Fun Best facilities Diversity Quality Values Best department in the city/state

2.1.5 STEPS TO ACHIEVE VISION  Refocus and train staff to be outcome driven    Develop culture around values and expected outputs Hold staff accountable Clear/consistent messages from upper management

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Update of the Pricing Policy and Revenue Plan | DRAFT Report

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Rebranding, repurposing and marketing the Department on what the Department can do for residents of the city Developing a cohesive culture Valuing staff opinion on decisions being made Engage hourly staff in determining how services are delivered Rebuild trust within the Department and with upper management Break down barriers for staff to achieve success Accurate timely data Reasonable policies Responsiveness Review and reassign duties

2.1.6 STAFF DESIRED OUTCOM ES FROM THE PRICING AND REVENUE PLAN  From a pricing stand point, the Department wants to know what the cost of service is for each unit managed to determine the true cost recovery level and what cost recovery level is desired by management for them to achieve. This would include: o o Each price of services should be evaluated for programs and facilities managed by the Department. The pricing philosophy needs to be re-addressed based on the process used in setting prices and the criteria to determine what constitutes a core essential, important and value added service. The Department uses several pricing models; identifying one model to work from is an outcome desired by staff. Establish a pricing and earned income foundation of thinking on how the business model works for the agency and applying it to facilities and program pricing.

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A Pricing Policy is needed that informs City Council how fees are considered and restructured to support financial sustainability for the Department and the City’s Structural Budget o o A defined process for pricing is needed for staff to follow. How and when fees are increased needs to be established.

Currently, the Department is underpricing the Safe Key Program and other areas such as Seniors Services (e.g. the $2 membership). o o Need to establish our membership rates around the YMCA rates in the city for similar services. Many seniors desire an increase in price to allow for increased programming.

The Department should examine if current program offerings are relevant based on who the service is provided for, for what purpose, for what benefit, for what outcome and at what costs. 13

Update of the Pricing Policy and Revenue Plan

Utilization of data the Department has collected through Oracle and Rec Trac should be used to make better decisions on pricing. This will require that the Department learn to trust the data and ask the software contractor to put in systems for that achieves the information desired. A Zero Based Budget approach should be used that aligns with our Pricing Policy to determine what costs are necessary for each program and facility managed by the Department. All the projects associated with pricing and earned income should include the Administration staff and the Supervisor staff in the decision process. Computer system software for Rec Trac is a real problem that needs to be resolved as it is difficult for staff to work with and it is hard for staff to work with. There are too many mistakes made in the data input process which results in poor data tracking. Identifying the needs of the community is an outcome the staff would like to see addressed. This would require an updated needs analysis via a statically valid survey. Better communication within the Department is desired based on what administration is wanting the Department to achieve and why? The Department would like to re-establish the core essential, important and value added services criteria again and train staff on what this means to the process of establishing user fees. o Also, the Department would like and need to go back and identify to what is a public, merit and private service and how this matches to core essential, important and value added services

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A complete cultural change inside of the Department is needed as part of the outcomes of this work is desired to make the process successful. The staff management standards for staffing levels needs to be addressed for facilities and programs.

2.1.7 PRICING AND REVENUE ISSUES THAT NEED TO BE ADDRESSED  Revenue Policy needs to be updated.  The Department is a perception based agency; establish how many hours it takes to track something that adds meaning to the staff’s work versus collecting information that does not have value to the Department or the city as a whole. A large amount of bureaucracy is built in the process to rent a field or shelter, which is driving customers away from using the city services which is un-necessary. The staff desires PROS Consulting to address why the Department and City each have an audit department versus the Department just using the City’s audit department for overseeing the Department’s management and cash handing requirements. The RecTrac software does not run smoothly and the software is causing problems; it is the hub of the Department and staff cannot receive reports from the system in a timely manner Marketing of the programs and facilities managed by the Department does not exists, which may cause issues with raising desired revenues. 14

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Move to “excel” based cost of service accounting process versus “access” accounting software in development of a cost of service model for the future. Evaluate the core functions of each service provided and determine where the services falls in its criteria and then determine the price of the service. The administration is deep into a revenue enhancement plan and this revenue and pricing plan needs to be connected to the one being developed by the City Manager’s Office. Policy recommendations for pricing is needed. The policy still exists but nobody has acted on it since it was completed four years ago.

2.1.8 CULTURAL ISSUES THAT SHOULD BE ADDRESSED  There are barriers between the two Divisions, the role and respect for each other’s work is not in place because their operating philosophies are different.    A key cultural issue is having written policy and procedures for the entire Department to follow. Safe Key is doing really well. The Department needs to re-image itself from a drop in child care provider to a recreation provider for the future. There exists an “us versus them” dynamic in the Department that is taking people’s energy away from doing their work in a positive manner.

2.1.9 BARRIERS TO ACHIEVING SUCCESS  It is difficult for people to have to work from a business unit perspective. Neighborhood Services does not collect users frees for any services and does not intend to for the work they do which creates to separate philosophies within the Department.    Some staff members indicated that they would like to see more of the upper management team in the field to understand the key issues the staff deal with on a daily basis. The overall feelings are that Divisions are short staffed and employees do not feel appreciated by upper management. The Department needs additional full-time staff versus part-time staff, as turnover is high and the time and cost to replace part time employees have to be recruited and re-trained which is very costly to the Department.

2.1.10 POLICY ISSUES THAT NEED TO BE ADDRESSED  A clearer direction on cost recovery is needed by the City Council and City Manager’s office.  Staff feel refunds should be completed at the site level not at the administration level which causes a lot of problem with the users of the system. o  Rec Trac and refunds are difficult to reconcile

Clearer policies are needed for the following: o o o Pricing policy Partnership policy Earned income policy 15

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o  

Volunteer policy

The four days a week is not working and this needs to be re-addressed to serve our customers better for the future. Supervisors are unable to choose their coordinators, which needs to be address.

2.1.11 STAFFING ISSUES THAT NEED TO BE ADDRESSED AS PART OF THE PRICING STUDY  Staff miss the engagement element at the senior sites.     Staffing for Safe Key is still a priority and one more staff person at each site is desired to make the best experience possible for the youth served. How do we bring instructional programs back into the Department so we are both a facility provider and a direct program provider at the same time? Additional support staff for the Human Resources division is needed to support the part-time staff needs in the Department and getting people hired back in a timely manner. The utilization of staff between various sections of the Department is needed versus everyone just doing their own thing

2.1.12 MANAGEMENT ISSUES THAT NEED TO BE ADDRESSED AS PART OF THE PRICING STUDY  Staff want to see this process of updating the Pricing and Revenue Plan utilized and implemented for the future of the Department.  Use this Revenue and Pricing plan to support our argument that the Department needs to be a leader in the areas it excels in the city versus transferring these responsibilities to other outsourced agencies. Trust & Communication is needed in the Department which does not exists between upper management and people in the field Lack of collaboration between the two divisions in the Department exists and the staff see no value in trying to make it work better from both sites Define the direct and indirect connections between Neighborhood Services and Recreation Services

  

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2.2 “ARE WE MAKING PROGRESS” ASSESSMENT
This assessment was undertaken as a part of the Baldrige Criteria for Performance Excellence. It is titled – “Are We Making Progress” and was circulated to management employees Department-wide. For organizations that have been using the Baldrige Criteria for Performance Excellence, the questionnaire is conveniently organized by the seven Criteria Categories. Over 20 management respondents participated in this survey which serves as a good yardstick to assess current employee sentiment at a point in time. These surveys were conducted in April 2013. The areas reviewed through this employee assessment template include:        Leadership Strategic Planning Customer and Market Focus Measurement, Analysis and Knowledge Management Workforce Focus Process Management Results

The results by each area are provided in the following pages. These are the key findings from each one of the key areas and do no list every single question asked of the respondents.  The summarized findings are color-coded based on the following: o o o 33% or less responses Agree or Strongly Agree – Red 34% - 66% of responses Agree or Strongly Agree – Red / Green 67% or higher responses Agree or Strongly Agree – Green

The reason for evaluating the culture of the organization in the development of this Pricing and Revenue Plan is that creating revenue to support operations is not an easy task or process. This work requires a business culture that centers on positive communications, operating philosophies that are business and entrepreneurial focused, accurate data management, cost accounting and a positive attitude that is energetic and customer focused in the delivery of services. If these are not present in an organization it will be difficult for the Department to accomplish the goals upper management have for them to achieve in financial sustainability. Happy employees will make enormous sacrifices for the good of the organization. Un-Happy employees cost the organization a lot of money.

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2.2.1 LE ADERSHIP As per the chart below, the employees indicate a low level of confidence in their senior leadership. The ability and willingness of the leadership to create a positive work environment and to ensure alignment along organizational values are critical stepping stones in the successful implementation of any planning process and based on the responses here, they were less than optimal. The areas of opportunity identified by the staff were with respect to organizational vision and information dissemination about the organization as a whole. Proactive communication with the staff and greater staff involvement on a consistent basis would be important to address these issues.

Senior leaders use org. values to guide us (23%)

My organization asks what I think (24%)

Leadership

My senior leaders create a work environment that helps me do my job (33%)

My organization's leaders share information about the organization (33%)

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2.2.2 STRATEGIC PLANNING This overall section follows a similar pattern of response for the Organization’s vision as indicated in the previous section. Some of the responses provided do not seem to be perfectly aligned with the consulting team’s assessment of the issues. By virtue of asking the employees to submit this assessment, the City sought to elicit ideas from the employees – however, that is not reflected in the low response below (24% indicated that ‘As it plans for the future, my organization asks for my ideas’). There did seem to be concerns about lack of a work environment conducive to staff effectively doing their work as well as alignment to organizational values. Both these areas must be addressed at the earliest to ensure the work culture and staff morale do not get further negatively impacted. Consistent with the recommendations in the leadership area, proactive information sharing and building a culture of innovation that allows employees to try new ideas and new initiatives would be useful in addressing these concerns. Additionally, conducting the Sterling Model assessments on an annual basis would be helpful for Department Leadership to be able to gauge trends and improvements in key areas over time.

My organization encourages totally new ideas – innovation (24%)

As it plans for the future, my organization asks for my ideas (24%)

Strategic Planning My organization is flexible and can make changes quickly when needed (24%) I know how to tell if we are making progress on my work group's part of the plan (43%)

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2.2.3 CUSTOMER AND M ARKET FOCUS As can be seen from the graphic below, this is an area that the City is performing at a high level. Too often agencies are focused on offerings services they want to offer versus those that their customers may actually need. Based on staff responses, individual staff members have a high awareness of who their most important customers are (95%) and regularly ask them what they need and want (81%). While 81% ask customers about wants and needs, only 57% follow up asking if they are satisfied or dissatisfied with the work. This completion of the customer interaction process system-wide would be a good area of improvement. A expansion to a more systemic process, not just for collecting information but also to analyze it, communicate it to internal and external partners and develop trending data over time would be helpful in creating a broader awareness among the staff about the Organization’s most important customer. Another area not demonstrated below but of relevance is employee empowerment in dealing with customer focus. 57% respondents stated that ‘I am allowed to make decision to solve problems for my customers. Employee empowerment is a key component to building an organizational culture that prides itself on teamwork and a sense of pride and ownership in the collective excellence of the organization. Best-in-class organizations such as Disney pride themselves on a very high level of empowerment and their customer service reflects that collective ownership. The high ratings indicate that the District is certainly moving in that same direction.

I know who my most important customers are (95%)

I regularly ask my customers what they need and want (81%)

Customer and Market Focus

I also know who my organization's most important customers are (52%)

I ask if my customers are satisfied or dissatisfied with my work (57%)

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2.2.4 MEASUREMENT, ANALYSI S, & KNOWLEDGE MANAG EMENT Staff responses for measurement, analysis and knowledge management were an area of improvement. While, half the employees indicated that they knew how to measure the quality of their work (52%), there is room to grow in expanding the establishment and use of performance metrics and written standards.

I know how to measure the quality of my work (52%)

I know how the measures I use in my work fit into the organization's overall measures of improvement (29%)

Measurement, Analysis, & Knowledge Management I know how the measures I use in my work fit into the organization’s overall measures of improvement (29%)

I know how my organization as a whole is doing (33%)

The responses seem to indicate that individual employees have greater awareness within their areas but unsure of how their work fits into the big picture of the overall organization. The City has already been proactive in addressing many of the data driven needs with its investment in cost of service modeling and maintenance management work as well Additionally, only one out of three employees (33%) indicated that they knew how the organization as a whole is doing. Continued system-wide communication and ensuring information gets communicated consistently at all levels of the agency would be critical in addressing this issue.

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2.2.5 WORKFORCE FOCUS Workforce focus has emerged as an area of relative strength for the City. Commitment to the organization’s success (71%), workplace safety (71%) and team work and cooperation (76%) are encouraging numbers but they certainly can improve as well. The employees also indicated a less than average perception with respect to employee recognition and a staff training and job skills development. On the positive side, two out of three employees (62%) indicated that their bosses and the organization cared about them (62%).

My bosses encourage me to develop my job skills so I can advance in my career (38%) I am recognized for my work (43%)

The people I work with cooperate and work as a team (76%)

Workforce Focus I have a safe workplace / I am committed to my organization's success (71%)

My bosses and my organization care about me (62%)

The Consulting team recommends that the City identify training requirements for various positions and develop by levels of staff and categories. It would be important to align training opportunities to strategic goals. Thus, if excellence in customer service is an on-going strategic goal for the City, then some additional training areas could include providing front desk staff and front line program staff training on the importance of their interactions with the customers, including first impression, cross selling techniques and up-selling or promoting offerings particularly for rentals and active programming. Additionally, given the Las Vegas’ extremely diverse demographic mix, diversity training would be helpful to staff in better dealing with its current and potential target market. From a sustainability theme perspective, workshops on grant writing / sponsorship or advertisement generation would also valuable opportunities.

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2.2.6 PROCESS MANAGEMENT The feedback for Process management is slightly higher compared to Strategic Planning or Leadership but not at optimal levels. The Consulting team recommends a policy-based structure that drives process as opposed one where lack of policies result in procedures becoming interchangeable with policies. Some policy elements that need to be developed or expanded include:       Pricing policies to help set prices based on cost recovery goals Partnership / Volunteer policies Earned income policies Internet and social network use policies Internal communication policies Customer service

We are prepared to handle an emergency (67%)

I can get everything I need to do my job (48%)

Process Management We have good processes for doing our work (29%) I have control over my work processes (33%)

Overall, the employees still indicated that they are prepared to handle an emergency and have good processes as well as adequate control over their work processes. Some suggested changes would be:  Develop standard operating procedures – SOP (e.g. how to manage / maintain aspect of the system such as lighting, irrigation, signage, restrooms, turf, and sports related equipment) and / or integrate existing procedures into a collaborative operating manual to ensure legacy knowledge from long-term staff is adequately captured and onboarding new staff is seamless Continue to classify all service offerings based on what is core, important or discretionary to the City’s long term vision and mission. These classifications would be based on alignment with City’s strategic focus and the level of individual versus community benefit afforded to the users.

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2.2.7 RESULTS In reviewing employee responses to this final criterion, there is unquestioned support that respondents feel customers are satisfied with their work – 95%. The organization obeys laws and regulations (71%) and work products meet all requirements (71%) which are good indicators. The key areas of concern are My organization has high standards and ethics – 33%. This is a very low number and any concerns dealing with ethics and standards must be looked into right away to ensure it does not spiral out of control. With respect to removing things that get in the way of progress, 10% is a very low number and indicates the need for a systemic change with respect to the operating culture in the agency. In order to alleviate this and become a more responsive organization, a transition to an outcome-based culture would be recommended. This approach is more results-driven and focuses on building planning tools and performance metrics to determine future course of action. A key complement to that would be ensuring the right staffing mix with aligning staff competencies with areas of need and updating work profiles and individual roles and responsibilities to meet the established outcomes. The presence of planning tools fleshes out hindrances and thus helps expedite the rate of change that the City envisions to successfully implement any future planning initiatives. In order to ensure maximum accountability and objective definitions of success, performance metrics must also be tied to the planning tools. Some examples are customer satisfaction, capacity utilization, customer retention, sustainability comparisons, program innovation, earned income generated and cost recovery levels, percent of standards met etc.

My organization is a good place to work / My organization helps me help the community (62%)

My organization obeys laws and regulations / My work products meet all requirements (71%)

R esults

My customers are satisfied with my work (95%)

My organization removes things that get in the way of progress (10%) / My organization has the right people and skills to do its work (19%)

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SUMMARY OVERALL STRENGTHS  Workforce Focus    Customer and Market focus Teamwork Customer satisfaction

SUMMARY OVERALL OPPORTUNITIES  Lack of awareness of vision, mission and values      Internal communication and system-wide information dissemination is lacking Internal staff input not utilized Inadequate processes or control over them Staff encouragement and recognition Bureaucratic and not right-staffed

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2.3 RECOMMENDED RE-ORGANIZATION
The following is an organizational concentric circle design that depicts what a great organization strives to adhere to in that they operate in a way where by as a Department each division is connected by a strong vision and mission. They understand their connectedness to each Division within the Department and they understand how to work as a team. The outside forces that put pressure on the organization are not able to penetrate the organization in a negative manner if they work well together and are able to solve problems collectively together that keeps the organization moving forward. This organizational model has enormous value and it truly works when developed and managed accordingly. This organizational model was presented to staff and they indicate that they would like to pursue managing to this model for the future within the City of Las Vegas.

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Update of the Pricing Policy and Revenue Plan | DRAFT Report

2.3.1 FUNCITIONAL ORGANIZATION CHART The proposed recommended organizational chart would allow the organization to move forward in a cohesive manner and allow functional elements to work in systemized efficient manner. Like kinds of programs, facilities and services are connected in a manner that will allow the Department operate in the most efficient manner versus the way the organization is set up today. Neighborhood services are not incorporated into this organizational model due to the fact that they are much more aligned with how Housing Departments work in a city as they deliver socially based services that are not business focused and they are not expected to create a level of cost recovery as the Parks and Recreation Department is expected to deliver back to the city in revenues.

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- PRIING PHILOSOPHY
3.1 PRICING PROCESS
The goal of the updated pricing policy recommendations will assist the Department to manage their system in the most cost effective manner and help to support their goal to become more self-sufficient through effective methods of pricing services and creating earned income. This cost recovery process is as follows:     Develop true cost of service for each facility involved in pricing changes Determine Competitor Prices for similar facilities Set cost recovery goals for the facility based on the quality of the experience and classification of service Determine prime time and non-prime time pricing

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A milestone of the project was a review of the Department’s cost of service analysis that included recommendations for expense management strategies. This aspect involved a review and evaluation of operating costs and methods to develop an efficient and pragmatic process to estimate functional direct and indirect costs based on the program or service ’s overall operating costs. Finally, a summary of recommendations for managing expenses and revenues in the future were developed as a resource and are intended to be one of the outcomes of this pricing and revenue plan. The cost of service process consisted of the following steps:    Improve the ability to describe and communicate the true costs of proactively managing the City of Las Vegas Department of Parks, Recreation and Neighborhood Services. Confirm the applicability and usability of the expense data for program services and park operations. This was provided by staff to the Consulting Team. Identify the most relevant and pragmatic cost categories that capture the major functions of park and recreation units and those that will support meaningful management decisions without creating a false sense of precision.

The illustration below depicts the cost of service analysis and allocation process that was followed in this project.

Gather and confirm program and services operating costs

Identify appropriate cost of service categories

Allocate overall unit costs to cost categories

Estimated cost of service for program services functions

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3.2 CLASSIFICATION OF SERVICES
Classifying services is an important process for a park and recreation agency to follow in order to remain aligned with the community’s interests and needs, the mission of the organization, and to sustainably operate within the bounds of the financial resources that support it. The criteria utilized and recommended in service classification stems from the foundation’s concept detailed by Dr. John Crompton and Dr. Charles Lamb. In Marketing Government and Social Services, they purport that programs should be evaluated on the criteria of type, who benefits, and who bears the cost of the program. This is illustrated below:

Type of Program

•Public service •Merit service •Private service •All the public •Individuals who participate benefit but all members of the community benefit in some way. •Individual who participates

Who Benefits?

•The public through the tax system, no user charges •Individual users pay partial costs Who Pays? •Individual users pay full costs

The approach taken in this cost recovery project expands classifying services in the following ways:      For whom the program is targeted For what purpose For what benefits For what cost For what outcome

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3.2.1 SERVICE CLASSIFICATI ON DESCRIPTIONS The service classification matrix below was developed as a guide for Department staff to follow when classifying services and for how that program needs to be managed with regard to cost recovery. By establishing clarification of what constitutes a “Core Essential Public Service”, “ Important Pub lic Service”, and “Value Added Service” will provide Department and its stakeholders a better understanding of why and how to manage each program area as it applies to public value and private value. Additionally, the effectiveness of the criteria linked to performance management expectations relies on the true cost of programs (direct and indirect cost) being identified. Where a program falls within this matrix can help to determine the most appropriate cost recovery rate that should be pursued and measured. This includes being able to determine what level of public benefit and private benefit exists as they apply to each program area. Public benefit is described as, “everyone receives the same level of benefit with equal access”. Private benefit is described as, “the user receives exclusive benefit above what a general taxpayer receives for their personal benefit”.

CRITERIA TO CONSIDER
Public interest or developmental importance as well as mandated by law and is mission aligned

CORE ESSENTIAL PUBLIC SERVICES

IMPORTANT PUBLIC SERVICES

VALUE ADDED SERVICES

High Public Expectation

High Public Expectation

High Individual and Interest Group Expectation

Financial sustainability

Free, Nominal or Fee Tailored to Public Needs __ Requires Public Funding

Fees Cover Some Direct Costs __ Requires a Balance of Public Funding and a Cost Recovery Target

Fees Cover Most Direct and Indirect Costs __ Some Public Funding as Appropriate

Benefits – i.e. health, safety, and protection of a valuable asset.

Substantial Public Benefit (negative consequence if not provided)

Public and Individual Benefit

Primarily Individual Benefit

Competition in the market

Limited or No Alternative Providers

Alternative Providers Unable to Meet Demand or Need

Alternative Providers Readily Available

Access

Open Access by All

Open Access / Limited Access to Specific Users

Limited Access to Specific Users

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3.2.2 SERVICE CATEGORIES AND LEVELS OF PUBLIC BENEFIT CORE ESSENTIAL PUBLIC SERVICES (PUBLIC SERVICES) The cost for providing mission-aligned services is solely or largely supported by tax revenue. Public services offer all users the same level of opportunity to access the service. The level of benefit is the same to all users.  Core Essential Public Service Example: o Open public access to use a park, playground, trail or non-reservable picnic area or park space

IMPORTANT PUBLIC SERVICES (MERIT SERVICES) Services identified as important and help support the organization’s mission. The user receives a higher level of benefit (such as instruction or an organized staff-directed program) than the general taxpayer; and yet the taxpayer benefits as a whole because the service provides a more livable community and the service has a good public benefit as well. Pricing for these services could include partial overhead pricing or variable cost pricing. Partial overhead pricing recovers all direct operating costs and/or a portion of fixed indirect costs. The portion of fixed costs not recovered by price represents the tax subsidy.  Important Public Service Examples: o Kayak and fishing skill development lessons, nature education programs, after-school youth programs, and activities and events that promote healthy nature-based outdoor lifestyles

VALUE ADDED SERVICES (PRIVATE) Includes services that only users or the visitors benefit. Pricing of private services should recover all direct and indirect costs associated with the service.  Value-Added Service Examples o Rental space for weddings, events, parties, and business meetings, entertainment and special use permit events, fitness classes, retail sales and food concessions, and exclusive use of park amenities

3.3 PRICING PHILOSOPHY
It is recommended that the City of Las Vegas Parks, Recreation and Neighborhood Services state its philosophy in all publications, on its website and in its reservation processes to describe how a price for a service or use of a facility is established. For example: “City of Las Vegas Parks, Recreation and Neighborhood Services funding from taxpayers is focused on mission-based facilities and services primarily centered on, parks, community centers and program services. The programs and facilities that are furthest from our mission, that provide an individual benefit, or that provide exclusive use may require revenue from users or other sources to help offset some operating costs.”

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3.3.1 KEY COMPONENTS The Pricing Policy includes seven key components:        Classify the service as Core Essential, Important and Value Added Know your cost to provide the service or facility Determine public value and private value of the service Determine what the market elasticity is for the service Price to the cost recovery goal established Provide price alternatives that allow people to access the service Find other earned income opportunities where appropriate to offset taxes and users fees to provide the service

3.4 PRICING RECOMMENDATI ONS
3.4.1 GENERAL RECOMMENDATI ONS  Develop a mini-business plan for the facility depending on how large the facility is and its operating budget      Market and Promote the Facility to reach capacity levels desired Update the pricing policy to reflect the cost recovery goal Theme Community Centers to make stronger destinations Make unproductive space productive Develop Revenue Revolving Funds for facilities to allow them greater flexibility

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3.5 MARKET PRICING COMPARISON
As part of the update to the Pricing Policy and Revenue Plan, the Staff completed an assessment of regional pricing rates for programs and facilities. The following tables show comparisons in the region: 3.5.1 MUNICPAL SPORTS FIELD USE

Municipal Sports Field Use
Seasonal League Permits City of Las Vegas
   $3/hour per field No charge for lighted hours No charge for field monitors    

Tournaments
$15/hour for non-profit organizations $30/hour for commercial organizations No charge for lighted hours No charge for field monitors Youth Community Rates o o o  $40/day per field $20/hour per field – Lighting Fee $40/field/occurrence – Grooming Youth Commercial Rates o o o  $80/day per field $20/hour per field – Lighting Fee $40/field/occurrence – Grooming Adult Community Rates o o o  $120/day per field $20/hour per field – Lighting Fee $40/field/occurrence – Grooming Adult Commercial Rates o o o $240/day per field $20/hour per field – Lighting Fee $40/field/occurrence – Grooming   

General Use/Hourly
Not Applicable

Clark County

Youth Community Rates o o $40/team per season – no lights $125/team per season – includes lights

Community Rates o o o $12/hour per field (max of 3 hrs.) $90/day per field (3+ hours) $20/hour per field – Lighting Fee Commercial Rates o o o $24/hour per field (max of 3 hrs.) $180/day per field (3+ hours) $20/hour per field – Lighting Fee

Youth Commercial Rates o o $80/team per season – no lights $250/team per season – includes lights

Adult Community Rates o o $120/team per season – no lights $205/team per season – includes lights

Adult Commercial Rates o o $240/team per season – no lights $410/team per season – includes lights

*Note: Clark County has discretion to require field monitors depending on event, and will assess $15 per hour per monitor as needed.

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Municipal Sports Field Use
Seasonal League Permits Henderson
 Not Applicable 

Tournaments
Not Applicable 

General Use/Hourly
Non-Profit Rates o o  $5/hour per field – no lights $10/hour per field – includes lights Commercial Rates o o $7.50/hour field – no lights $15/hour per field – includes lights per

*Note: Henderson includes additional costs such field lining, set-up costs, initial field prep per occurrence, Holiday prep rates and Henderson also charge $15 per hour for field monitors.

Based on the comparative analysis the Parks, Recreation and Neighborhood Services fees for the city of Las Vegas are undervalued and below market rates of what other cities and the county are charging for similar type facilities. The key to effective pricing for game fields is as follows:       Is the service a core essential, important, or value added service? Does the service fit into a public, merit or private service? What level of public good and private good is present? What is the true cost to provide the service as it applies to maintenance, utilities, as staffing costs? Is the sports group generating revenue to support their teams, tournament off of a public facility? If so how much? What is the value of exclusive use of a public facility for private gain?

In the case of the City of Las Vegas, they provide an “important service for youth programs in the city where-by there is public good and private good associated with playing on public owned facilities for leagues not sponsored by the city. In most situations public agencies try to recover 50% of their operational costs for permitting these facilities to city youth sports groups. The Parks, Recreation and Neighborhood Services Department has presented to City Council in the past and recommended that the fees for exclusive use of city owned facilities for youth sports recovery 50% of their costs. This recommendation should be approved. The Parks, Recreation and Neighborhood Services Department has presented to City Council that adult sports groups cover their direct costs for exclusive use of public facilities for profit sports leagues. This recommendation should be approved by the City Council. It should be noted that PROS Consulting recommends that the city adopt a new policy for waiving fees for quote “partnerships” be developed. There are many times when a community group or not -for-profit 35

Update of the Pricing Policy and Revenue Plan

will attempt to secure a building, room, field, or sports complex when they become aware of the price they approach city officials to “Co -sponsor” the event in order to avoid paying the prices for exclusive use of city owned facilities whereby they are able to generate a profit at the city’s expense. If the city officials want to Co-Sponsor an event there should be a formally executed agreement between the City of Las Vegas and the outside group similar to formal agreements the city has with the School District and other Municipalities in the valley. The executed agreement should speak to Partnership Equity, the benefits to both parties, purpose of the agreement, how should pricing and possible waiving of fees be dealt with, and whether a financial benefit will be realized for the outside group. The existing “Fee Waiver” Policy and Form is not a formal Partnership Agreement.

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3.5.2 PICNIC FACILITIES The Department charges a reservation fee for exclusive use of a picnic pavilion currently. The Department does not have a commercial rate similar to Clark County. Most park and recreation agencies have a prime time and non-prime time price for picnic pavilions as well. The Department does not know its true cost to provide the service or the current level of capacity of use. Staff has recommended a price increase from $50-$100 to $75-$125 dollars which PROS Consulting supports. PROS also recommends that the Department create a prime time (Friday, Saturday, and Sunday) and non-prime time rate (MondayThursday) as well as a commercial rate fee for private groups who make profit off of a public facility.

Picnic Facilities
City of Las Vegas
 Rates based on number of people expected o o o o o o  o o 1-24 25-50 51-100 101-199 201-400 400 + 1-200 201-400 $15 per day $25 deposit/$25 per day $25 deposit/$50 per day $50 deposit/$100 per day $75 deposit/$150 per day Special event rates $50 additional per hour $75 additional per hour

With a DJ

Clark County

100 limit o o $50 fee per day – community fee $100 fee per day – commercial fee $125 fee per day – community fee $250 fee per day – commercial fee $250 fee per day – community fee $500 fee per day – commercial fee $500 fee per day – community fee $1000 fee per day – commercial fee

250 limit o o

500 limit o o

1000 limit o o

Henderson

Henderson Picnic areas * two hour minimum o o o o o o o o 25 limit 75 limit 100 limit 150 limit 200 limit 400 limit 600 limit 700 limit $10 per hour/$50 deposit $20 per hour/$100 deposit $25 per hour/$50 deposit $50 per hour/$100 deposit $75 per hour/$150 deposit $100 per hour/$200 deposit $125 per hour/$250 deposit $150 per hour/$300 deposit

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3.5.3 CAMP RATES Camp rates for a private service is comparable between Clark County and the City of Las Vegas. The Department needs to do a true cost of service assessment for their camps to determine the level of tax subsidy the city is investing in the child for summer camp. Most summer camps are considered a private good and park systems tend to recovery at least 100% of the direct costs associated with the providing the service. The Department views camps as a merit service and is subsidizing the program 56% to 88% depending on the camp site. Some adjustments in pricing should be considered based on the classification of the service and the true cost to deliver the service.

Camp Rates
City of Las Vegas
  General Camp o o $75/week for 1st child, $70/week for each additional child $115/week for 1st child, $110 for each additional child Specialty Camps

Clark County Henderson

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$75/week $15/day drop in fee $99/1 child/week $176/2 children/week $231/3 children/week $27/day drop in fee $140/week $4/day drop in fee

YMCA

 

3.5.4 SAFEKEY RATES The Department is pricing SAFEKEY similar to other service providers in the valley and is subsidizing the program at 10%. SAFEKEY is considered a merit service in most communities. The Daily fee could be adjusted slightly to recover 100% of the cost of the program.

SAFEKEY Rates
City of Las Vegas
  AM Session o o $5 or $6 per child depending on school hours $8 or $10 per child depending on school hours PM Session

Clark County

  

Summer Safekey Rates o o o $15 per day, $70 per week $4 per child $7 per child AM Session PM Session

Henderson

Morning Session o o 1 child – $3.80-$4 depending on number of days 2 children – $6.80-$11 depending on number of days

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o  o o o

3 children – $9.80 $10.66-$4 depending on number of days 1 child – $7-7.33 depending on number of days 2 children – $11.80-$12.33 depending on number of days 3 children – $16.60-17.33 depending on number of days

Afternoon Session

3.5.5 FACILITY RENTALS The Department provides many opportunities for people to rent space for community meetings, weddings, reunions, gyms and special events at community centers in the city. The city subsidizes these public and private events between 30% each year. The Department considers rentals as a private service but still subsidizes the use at a hefty rate. The opportunity to increase the use and rental prices is evident and should be considered for the future. The city should consider outsourcing their prime times open times to outside catering and event organizers as another rental options and provide them an incentive to rent city space by providing a 15% discount to them for renting the space. This may require the city to invite meeting an event organizers to provide input in to décor options the city could provide in the future. Permitting the options to serve alcohol with approved caterers would also support rental use as well. Having appropriate sound, AV equipment and other needs of users should be evaluated as well to maximize the use for the future. 3.5.6 E AST LAS VEGAS COMMUNITY/SENIOR FACILITY RENTALS

Room
Ballroom A Ballroom B Ballroom Multi-Purpose Room Learning Room Loom Room Conference Room 1 Conference Room 2 Bandstand Pottery Room

Capacity
400-600 150-200 600-800 60

Square Ft
8623 4319 12,942 1171

For Profit Rate
75.00 60.00 193.00 40.00

Non-Profit Rate
50.00 20.00 83.00 10.00

Alcohol
Yes, upon approval Yes, upon approval Yes, upon approval Yes upon approval

30 30 20

671 802 468

14.00 25.00 14.00

8.00 10.00 8.00

No Yes, upon approval No

15 400 ?

275

14.00 193.00

8.00 83.00 Not assigned

No Yes, upon Approval No

706

Not assigned

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There is a maintenance fee for the following:  Ballroom-$200  Ballroom A-$100  Ballroom B-$100  MPR-$50 OT/Hourly rate is $124/hr. for staff costs (includes 2 staff)  $33/hr./staff for cleanup, tear down or set up Rental extras:  PA/w/ one Microphone -$50  Addl Microphones-$10/ea.  DVD player-$15  Projector-$50  Screen-$25  White Board-$25/ea.  Power Strip-$10/ea.  Extension Cord/Power Strip-$10/ea.  Easel-$10/ea. Suggested Rates based on Market Rates

Room
Ballroom A Ballroom B Ballroom Multi-Purpose Room Learning Room Loom Room Conference Room 1 Conference Room 2 Bandstand Pottery Room

Capacity
400-600 150-200 600-800 60

Sq. Ft
8623 4319 12,942 1171

For Profit Rate
165.00 85.00 250.00 50.00

Non-Profit Rate
85.00 40.00 125.00 25.00

Alcohol
Yes, upon approval Yes, upon approval Yes, upon approval Yes upon approval

30 30 20

671 802 468

30.00 40.00 30.00

15.00 20.00 15.00

No Yes, upon approval No

15

275

20.00

10.00

No

400 ? 706

200.00 $40

100.00 $20

Yes, upon Approval No

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3.5.7 STUPAK PRICING

Room
Arts Craft Room – 119 ESL Monthly Room Fee

Regular Rate/ Hour
$25 $224.50 /month

Non- Profit Rate/ Hour
$12.50

Suggested Rates
$30/hour $15/hr. NP Would like increased, price is negotiated by purchasing

Class Room – 202 ESL Monthly Room Fee

$60 $877.50 /month

$30 Would like increased, price is negotiated by purchasing

Class Room – 203 ESL Monthly Room Fee

$60 $702/month

$30 Would like increased, price is negotiated by purchasing

Class Room – 221 Class Room – 222 Dance Studio Gym North Side or South Side Gym Game room Kitchen Lobby Area Teen Room Weight Room Walking Track

$60 $60 $25 $50 $25 $60 $50 $25 $25 $25 $10

$30 $30 $12.50 $25 $12.50 $30 $60/hour $30/hour $60/hour $12.50 $30/hour $15/hr. NP $30/hour $15/hr. NP $30/hour $15/hr. NP

  

Normal Hours 8a-9p Monday – Friday, 8a-4:30p on Saturday. After Hours Fee’s would be the Regular Rate Doubled to cover the cost of the area/room if wanting after hours. After hours fees also include a staff fee per hour - $45 part time, $82, Full-Time, $87.07 FullTime Sr, $98.98 Full-Time Coordinator.

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3.5.8 DOOLITTLE COMMUNITY CENTER
Doolittle Community Center Gym/Multi-Purpose Room/Class Rooms Hourly Rates Business Hour Rates
Full Court Full Court (Non-Profit) Half Court Half Court (Non-Profit) Multi-Purpose Rooms Multi-Purpose Rooms (Non-Profit) Class Rooms Class Rooms (Non-Profit) *non-refundable cleaning fee* Business Hours Monday – Thursday Friday Saturday Sunday 8:00am – 9:00pm 8:00am – 8:00pm 8:00am – 5:30pm Closed $30.00 per hour $15.00 per hour $15.00 per hour $ 7.50 per hour $30.00 per hour $15.00 per hour $15.00 per hour $7.50 per hour $100.00 per hour

Before & After Hour Rates Full Court Multi- Purpose Rooms Class Rooms Opening Fee Utilities Hourly staff LS Rec. Leader LS Sr. Rec. Leader LS Coordinator $60.00 per hour $60.00 per hour $30.00 per hour $60.00 flat rate $47.37 per hour $45.00 per hour $82.00 per hour $87.07 per hour $98.98 per hour

*After hour rentals are booked and charged based on staff availability. After hour rentals will be staffed by an hourly employee and classified employee at all times. The non-refundable cleaning fee is applicable to Multi-Purpose Room rentals that serve food/snacks etc.

The concerns expressed from Doolittle staff regarding fees for the facility gymnasiums: One of the main or major concerns from staff is the fact that they have two gymnasiums. This is an attraction to those organizations that are interested in hosting Basketball Tournaments/Camps/Practices. They are able to accommodate those requests due to that fact. The facility is often compared to the CCSD High Schools or the Centennial Hills and Heinrich YMCA’s as each of those facilities have multiple gymnasiums as well. It is imperative that the current fees do not decrease.

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3.6 THEMED COMMUNITY CENTERS
Theming Community Centers could have a very positive impact on the Departments over revenue for the future. Theming helps to broaden the user base by expanding the user base to more than a 15 minute drive time for facilities that capture a strong focused user. The following are examples of how theming of existing centers could help the Departments overall operational budget if allowed to happen. 3.6.1 THEMED COMMUNITY CEN TERS – VETERANS MEMORIAL LE ISURE CENTER – YOUTH SPORTS LE AGUES  The Center is currently a Recreational Youth Sports Center for basketball and youth football      The center is between a middle school and a high school with the opportunity to utilize the gyms and fields for much larger programs Facility could host much larger leagues then it does now Add youth volleyball leagues via the opposite times of basketball Add T-ball leagues on the two outdoor fields Keys to success: Will require additional staff and expense budget. The City should consider a price point change as more marketing is required. Additional earned income could come from sponsorships. Also, will require breaking down entitlements of existing user groups for the site.

3.6.2 THEMED COMMUNITY CEN TERS – MIRABELLI COMMUNITY CENTER-GYMNASTICS CENTER WITH SOME COMMUNITY PROGRAMS  Currently excels at Gymnastics, Cheerleading and Dance center with dedicated space   Consider using gym for lower level introductory gymnastics, cheerleading and dance Keys to Success: Will require more staff to focus on Gymnastics, as well as Cheerleading and Dance. Additional expense money will be required, as the center will need to add additional equipment, a price point change and better marketing. Also, will require breaking down entitlements

3.6.3 DULA GYMNASIUM – ADULT VOLLEYBALL  Could be an ideal home for Adult Volleyball six (6) days a week because it has the largest gym in the system and could facilitate three (3) courts at the same time  Keys to Success: Will need a price point change, as well as additional more marketing. An expert staff in Volleyball will be required to reprogram the site. Also, will require breaking down entitlements

3.6.4 DOOLITTLE COMMUNITY CENTER-YOUTH AND ADULT COMPETITIVE BASKETBALL  Could become the home of Youth and Adult Competitive Basketball. The center is the only facility with two (2) gymnasiums. Also, the center already maintains expert staff members in Basketball on site  Keys to Success: The City will need to invest in additional parking and increased security. The center will also need a price point change, as additional marketing and capital costs will be required. Also, will require breaking down entitlements 43

Update of the Pricing Policy and Revenue Plan

- FINANCIAL MODELING
The PROS Consulting Team and Department Staff developed a financial cost of service model based on available Department information to be used to document true cost (both direct and indirect) and evaluate current and proposed pricing strategies from this data.

4.1 COST OF SERVICE MODEL
The following cost of service model demonstrates the key revenues and expenses associated with each core service and facility the Department manages. The model demonstrates the current cost recovery levels occurring within Recreation Services now against what typically is the national average for these types of services. These include:          Aquatics: 13.3% National Average: 60-80% SAFEKEY: 90.42% National Average: 80%-100% Senior Services: 9.05% National Average 25-30% Senior Trips: National Average 100% Municipal Sports: 67% National Average 75-80% Floyd Lamb Park: 26.8% National Average 90-100% Park Pavilion Reservations: 13.58% National Average 30-40% Summer Day Camps: 73.4% National Average 90-100% Facility Rental Sites:69.5% National Average 90-100%

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4.2 REVENUE STRATEGIES
4.2.1 FACILITY PRICING RECOMMENDATIONS  Develop true cost of service for each facility managed by the Department.  Determine competitor and other public service providers prices based on similar facilities and services to determine price elasticity in the market before determining prices for exclusive use of city owned facilities based on prime time and non-prime times. Set fees for exclusive use of pavilions (merit service) and increase prices by $25 dollars a rental from $50- $100 dollars a rental to $75-$125 rental based on the size of the pavilion rental. Increase staff costs for special events from an average of $22-$44 dollars per hour to a flat $55 dollars per hour (private service). Increase rental rates of community center meeting facilities and gym space for exclusive use (private service) from $10-$190 an hour to $30-$250 dollars an hour based on the type of program being provided in the facility. Increase pool prices from $1-$2 dollars per hour to $2-$4 dollars per hour (merit service). Increase fee based classes for all users including seniors from an average of $20-$40 dollars to $30-$50 dollars a class or month depending on the program (merit) service. Increase SAFEKEY annual registration fee from $10 dollars to $20 dollars (merit service). Increase Daily pass fees from $5-$8 dollars to $7-$10 dollars Increase annual membership rate from $2 to $24-$36 dollars membership (merit service) at Senior Centers. Build in marketing costs into prices for facilities and services to let the community know what services are available to them. Theme Recreation Centers to maximize the productivity of use and broaden the service opportunities to a regional level (15 minute drive time). Make unproductive facility space productive via stronger programming at each site. Consider the development of a future field house for creating sports tourism opportunities as well as serve the local market in basketball, volleyball, cheerleading, wrestling, soccer, Lacrosse, baseball, and fitness challenge events. This is similar to the soccer complex developed by the city. Update all fitness equipment at the recreation centers and increase monthly pass prices to reflect the new value associated with the new equipment.

  

        

4.2.2 ADMINISTRATION AND OPERATIONAL EFFICIENCY RECOMMENDATIONS  Track cost and user data consistently to make sound pricing decisions.   Upgrade data tracking systems to track cost and user data accurately in a timely format. Develop true cost of service information to determine cost recovery goals and track unit costs.

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Seek City Council approval of an updated pricing policy that establishes cost recovery goals for all core programs and facilities the Department manages. Allow the City Manager’s office with Department staff to establish appropriate user prices for services based on the structural budget needs of the city. Inform City Council that prices will be set to achieve cost recovery goals with ranges of prices based on prime time and non-prime time and based on classification of services which are public, merit and private services. Incorporate automatic pricing escalators for prices each year to cover cost increases for utilities, staffing, supplies and equipment requirements to deliver services. Hire appropriate staff to meet cost recovery goals established by the City Manager’s office. Track performance outcomes of all programs and service and report quarterly to the City Manager’s office. Develop a self-funded scholarship program for youth in the city. Create new earned income opportunities through the Business Development office of the Department to help offset operational costs. Earned income opportunities could include sponsorships, advertising, increased partnerships, grants, retail sales, concessions, and development of a Parks and Recreation Foundation. Implement the recommended organizational structure outlined in this Pricing and Revenue Study. Develop a true Business Development office for the Department that focuses on business plans for signature facilities and programs, earned income development, foundation development, grants and cost of service tracking working with field staff. Eliminate the large amount of bureaucracy within the Parks, Recreation and Neighborhood Services Department as it applies to reservations and permits to access facilities. Re-establish a marketing department and develop a marketing plan for the system and key programs and facilities

    

 

 

4.2.3 OPERATIONAL EFFICIEN CY RECOMMENDATIONS  Develop specific business plans for signature programs and facilities to maximize their revenue capability and to manage their cost more effectively.        Update all polices including fee waiver policy, partnership policies, and earned income policies. Go back to a five day work week for staff to deliver better service in the field. Allow all full-time staff to access the data system. Allow staff to make decisions in the field as it applies to refunds to be more customer focused. Eliminate entitlement groups over a three year period. Teach and train staff on how pricing of services works and how to communicate pricing to users based on cost and classification of services. Track partnership equity and cost of service and negotiate yearly partnerships based on the outcomes and cost desired. 48

Update of the Pricing Policy and Revenue Plan | DRAFT Report

  

Outsource to private businesses unproductive spaces in facilities. Establish a youth sports association to maximize fairness and use of sports facilities in the city. Institutionalize throughout the Department the Strategic Business Plan developed in 2013 and teach and train staff to the focus and performance indicators outlined in the plan and report out quarterly the results to the City Manager’s office.

4.3 FUNDING OPTIONS
Park and Recreation systems across the United States today have learned to develop a clear understanding of how to manage revenue options to support parks and recreation services in a municipality based on the limited availability of tax dollars. Park and Recreation systems no longer rely on taxes as their sole revenue option but have developed new sources of revenue options to help support capital and operational needs. A growing number of municipalities have developed policies on pricing of services, cost recovery rates and partnership agreements for programs and facilities provided to the community. They also have developed strong partnerships that are fair and equitable in the delivery of services based on whom receives the service, for what purpose, for what benefit and for what costs. In addition, agencies have learned to use parks and recreation facilities, amenities, programs and events to create economic development. This development has resulted in keeping property values high around parks and along trails through increased maintenance, adding sports facilities and events to drive tournaments into the region that create hotel room nights and increase expenditures in restaurants and retail areas. Systems have recognized that people will visit their community for recreation facilities such as sports complexes, pools, special events and major attractions if the management and presentation results in a high quality experience. The Parks, Recreation and Neighborhood Services Department has many successful policies and management practices in place, but the options presented within this technical report expand and enhance on the current practices. The report outlines several options for the Department to consider and some if not all of these sources should be considered as an option to support the capital and operational needs of the Department for the future. 4.3.1 PARK AND FACILITY FU NDING SOURCES FOR LAND ACQUISITION 1. Open Space Bond Issue. Many cities across the United States have used an open space bond issue to acquire land for parks, park development and open space. The bond funds come from either property taxes or sales taxes and are usually ten years in length. Communities such as Seattle, Phoenix, Chicago Park Districts, Kansas City, and Denver have motivated voters to support open space through bond issues. 2. Bond Issue for Park Development and Improvements. This is the source that most park and recreation agencies use to motivate voters to support infrastructure improvements and new construction projects. These are usually in the form of an established amount of dollars for a particular bond issue for five or ten years. The City of Dallas has been rebuilding their park and recreation system over the last ten years by passing over $700 million in parks related improvements using property tax related bond issues which have made a significant impact on the livability of the neighborhoods, their downtown and in their regional parks.

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City of Las Vegas Parks, Recreation and Neighborhood Services

3. Establish a Facility Authority. A Facility Authority is used by park and recreation agencies to improve a specific park or develop a specific improvement such as a stadium, large recreation center, large aquatic center, or sports venues for competitive events. The sale of these bonds usually comes from sales taxes. The City of Indianapolis has created several community venues for recreation purposes and national competition events for local purposes and economic purposes. The Facility Authority is responsible for managing the sites and operating them in a self-supporting manner. 4. Real-Estate Transfer Fees. This is the newest form of funding many agencies and states have used to acquire park land and develop the lands they acquire. The money comes from the transfer of real-estate from one owner to another owner and the city would then retain ½ of 1% of the value of the property at the time of sale which is dedicated to acquiring park land. 5. Park Impact Fee. These fees are attached to the cost of development of residential homes and condominiums in a city based on the square footage of the house or the number of bedrooms within the property. Impact fees range from a low of $500 per property to a high of $9,000 per property for park acquisition and development. The City of Atlanta is now using this revenue source. Park Impact Fees should be updated every two years to market rates and the cost of acquiring land for parks in the community. 6. CDBG funds. These funds can be used by the city for park related improvements and should continue to help support the park improvements and land acquisition needs in the city. 7. Benefit Districts. This funding source identifies the benefits associated with an improvement and establishes a tax on the property or establishes a sales tax to support the capital cost associated with the acquisition and development of the property. This is usually applied to large community parks, regional parks, event plazas, signature parks, and attractions including downtown areas. The benefit districts are usually in downtown areas or in regions of the city slated for redevelopment. This has occurred in Oklahoma City in the Downtown District. 8. Lease Backs. This is another source of capital funding where banks or private placement fund companies will develop a park, recreation attraction, recreation center, pool, sports complex with the intent of buying the land, developing the project and leasing it back to the city to pay off the capital costs over a 20 to 30 year period. Major Banks are inventing billions of dollars in public infrastructure across the United States. Cities like to use this source because they can increase their operational budgets easier than they can receive capital dollars to pay off the lease over a set period of time. Cities like this funding source because the Development Corporation can get projects off the ground faster than most cities can and with less hassle. The time value of money is in favor of the cities to utilize this funding source. 9. Transient Occupancy Tax. This funding source is used by many cities to fund improvements in parks in urban areas to improve the image of an area, enhance parks where hotels and businesses are located, and to support the development of park related improvements. Cities will apply a 5% to 10% tax on the value of a hotel room dedicated to improving facilities and to market the community. 10. Boulevard Tax. This funding tax is used considerably by the City of Kansas City to develop parkways, boulevards, and Pesos throughout the city. Residents who live along these corridors are taxed based on a lineal foot which is added to their property tax bill. It has proven to be 50

Update of the Pricing Policy and Revenue Plan | DRAFT Report

very beneficial to the home owner who lives along these corridors when selling their homes as these homes are highly valued property within the city. 11. Landscape and Lighting Districts. This funding source is highly used in California for developing parks, and boulevards. Residents in these neighborhoods tax themselves for parks, landscape roadways, boulevards, pesos and neighborhood parks for park developments and ongoing maintenance. These improvements raise the value of homes and the quality of the neighborhood because of this dedicated tax on property. 12. Storm Water Utility Money. This funding source is used in many cites as a way to develop greenways and green corridors from the storm water tax on utilities that residents pay as part of their utility bills. Improvements can include trails, drainage areas, retention ponds used for recreation purposes and natural protection of waterways through cities. The City of Houston is using this source to develop and maintain their bayous in the city and to improve the access and use of them throughout the community for flood control purposes and recreation purposes. 13. Greenway Foundations. Many cities have turned to a greenway foundation to help develop and maintain trails and green corridors throughout the city. The City of Indianapolis Greenway Foundation develops and maintains the 181 miles of greenways and seeks land leases along the trails to concessionaires such as food and bicycle concessionaries as a funding source for maintaining the trails. In addition, cities sell the development rights along the trails for local utilities for water, sewer, fiber optic, and cable lines on a mile basis which helps to develop and manage these corridors. King County in Seattle has done a very good job in accessing this funding source for greenway development. 14. Special Recognition License Tag. Some cities have created a special designation car tag that provides income to the city or a parks foundation. In Indianapolis, the city has a designated tag for greenways. The license plate provides $45 per tag to the Greenways Foundation from each tag sold each year for greenway development and management. 15. Land Trusts. This funding source provides ongoing revenue for a specific property for capital and maintenance costs. Land trusts operate with a separate non-for-profit board who oversees the maintenance and funding needs of the park. Santa Barbara Land Trust is a good example of a Land Trust that is managing a regional park for the City of Santa Barbara. Likewise Piedmont Park in Atlanta is a very good example of a private land trust managing a signature park for the city. 16. Conservation Districts. Conservation Districts operate similar to a land trust but are set up to protect and preserve property for park systems. Usually these conservation districts are managed by a conservation board for the protection of watersheds or sensitive natural areas. The conservation district role is to provide land owner tax benefits for allowing their property to be put into the district for protection purposes. 17. Park Foundation. Park Foundations have helped many cities to acquire land and develop parks across the nation. These foundations are established for the purpose of supporting parks and recreation needs in the city. The Houston Parks Foundation typically raises $5 million a year for land acquisition and park improvements. Also, the city of Indianapolis has a well-managed park foundation that raises capital dollars for needed projects in the city. 18. Grants. Grants have always been a good source for funding of parks throughout the United States. Grants can be provided by the Federal Government such as the land and conservation 51

City of Las Vegas Parks, Recreation and Neighborhood Services

fund, transportation enhancement funds for trails and greenways, state grant funds from gambling taxes or alcohol funds, and local grants from community foundations. Indianapolis has received over $100 million in foundation grants over the last 15 years from the Lilly Endowment for park related improvements in the City of Indianapolis. 19. Dedicated Sales Tax. Dedicated sales tax has been used by many cities as a funding tool for capital improvements. In the City of Lawrence, Kansas, the city passed a $0.01 cent sales tax for parks which has generated over $50 million in park improvements over the last seven years. The City of Phoenix also receives sales tax revenue from rental car taxes to support capital needs of parks and recreation services. 20. Income Tax. In Ohio, many cities have passed a 1% income tax to support parks and recreation needs. This is voted on by the community, and the people who work in the city but live outside of the city, help to pay for the parks and improvements in the city. 21. New Markets Tax. This is a new taxing program for cities to use that allow citizens to support a bond issue for parks, but only pay the interest on the first seven (7) years of the bond issue, which allows the bond issue to be paid off quickly and is less burdensome to the taxpayer. 22. Partnership Development Agreement. Each partner would develop their respective facilities based on set design guidelines with the City or a private management company managing all the site elements. Partners would work collectively to promote the site as a whole versus individual amenities. 23. Rebuild Baseball in the Inner City. The RBI program developed by major league baseball helped rebuild baseball and softball fields in the inner city for many urban cities across United States. Indianapolis RBI program has redeveloped over 15 baseball/softball fields in inner city that has significantly changed how these fields look, operate and has increased play of youth in baseball and softball in the inner city and has been a major success story. has the the the

4.3.2 FEDERAL GOVERNMENT FUNDING SOURCES Some Federal programs offer financial aid for projects that aim to improve community infrastructure, transportation, tourism, housing, and recreation programs. Some of the Federal programs that can be used to support the development of greenway systems as well include: 1. National Scenic Byways Program. This component of TEA-21 is designed to protect and enhance America’s designated scenic roads. Money is available for planning, safety and facility improvements, cultural and historic resource protection, and tourism information signage. Bicycle and pedestrian facilities can be developed in conjunction with scenic roadway projects. Some states with Scenic Byway Programs have developed greenways in conjunction with this initiative. 2. Community Development Block Grant Program (CDBG). The U.S. Department of Housing and Urban Development (HUD) offers financial grants to communities for neighborhood revitalization, economic development, tourism and improvements to community facilities and services, especially in low and moderate-income areas. Several communities have used HUD funds to develop greenways and tourism areas. 3. Conservation Reserve Program. The U. S. Department of Agriculture (USDA), through its Agricultural Stabilization and Conservation Service, provides payments to farm owners and 52

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operators to place highly erodible or environmentally sensitive landscapes into a 10-15 year conservation contract. The participant, in return for annual payments during this period, agrees to implement a conservation plan approved by the local conservation district for converting sensitive lands to less intensive uses. Individuals, associations, corporations, estates, trusts, cities, counties and other entities are eligible for this program. Funds from this program can be used to fund the maintenance of open space and non-public-use greenways, along bodies of water and ridgelines. 4. Watershed Protection and Flood Prevention (Small Watersheds) Grants. The USDA Natural Resource Conservation Service (NRCS) provides funding to state and local agencies or nonprofit organizations authorized to carry out, maintain and operate watershed improvements involving less than 250,000 acres. The NRCS provides financial and technical assistance to eligible projects to improve watershed protection, flood prevention, sedimentation control, public water-based fish and wildlife enhancements, and recreation planning. The NRCS requires a 50% local match for public recreation, and fish and wildlife projects. 5. National Recreational Trails Program. These grants are available to government and non-profit agencies, for amounts ranging from $5,000 to $50,000, for the building of a trail or piece of a trail. It is a reimbursement grant program (sponsor must fund 100% of the project up front) and requires a 20% local match. This is an annual program, with an application deadline at the end of January. The available funds are split such that 30% goes towards motorized trails, 30% to nonmotorized trails, and 40% is discretionary for trail construction. 6. Design Arts Program. The National Endowment for the Arts provides grants to states and local agencies, individuals and nonprofit organizations for projects that incorporate urban design, historic preservation, planning, architecture, landscape architecture and other community improvement activities, including greenway development. Grants to organizations and agencies must be matched by a 50% local contribution. Agencies can receive up to $50,000. 7. Redevelopment Money. Redevelopment money from the County or the State to promote sports tourism and for economic development in the area. Redevelopment agencies are typically located as part of cities and counties in most states. 8. Community Forest and Open Space Program. Federal Grant with Estimated Total Program Funding of $3,150,000. Individual grant applications may not exceed $400,000. The program pays up to 50% of the project costs and requires a 50% non-federal match. Eligible lands for grants funded under this program are private forests that are at least five acres in size, suitable to sustain natural vegetation, and at least 75% forested. 9. Land and Water Conservation Fund. The funds are to be utilized in the preservation, development and renovation of outdoor recreation faciliti es, with a focus on America’s Great Outdoors Initiative. Land and Water Conservation funds may be used to create new pavilions or renovate existing structures, playgrounds or play areas, ball fields, bleachers, golf course meeting rooms, multi-purpose courts, parking facilities, pathways and trails, roads, signs, ski areas, snowmobile facilities and tennis courts. Federal Funds awarded, on average, $70,000. 10. Safetea-Lu (Safe, Accountable, Flexible, Efficient Transportation Equity Act) Program for Trails. Federal Grant-Average size $200,000 and Administered through the State of Nevada.

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11. Safe Routes to Schools Program. Enables children to bike for grades k-8 within 2 miles of school. While federally funded, agencies must have a state approved transportation plan. Average grant size is $200,000 12. Surface Transportation Program. Transportation Enhancement Federal Grant Program. These grants focus on constructing bicycle transportation facilities, pedestrian walkways, maps, brochures, educational activities, bike lanes, signage and bridges. Average grant size is $300,000. 13. Congestion Mitigation and Air Quality Program-fund. The Congestion Mitigation and Air Quality Program-fund is for transportation projects that improve air quality and reduce traffic congestion. Projects can include bicycle and pedestrian projects, trails, links to communities, bike rack facilities. Average grant size is $50-$100,000. 14. Community Facilities Grant and Loan Program. This source is established to assist communities with grant and loan funding for the expansion, renovation and/or remodeling of former school facilities and/or existing surplus government facilities that have a current or future community use. Facilities may be space for community gatherings and functions, as well as recreational athletic facilities for community members, particularly youth. These include space for non-forprofit offices, child care, community education, theater, senior centers and youth centers and after school programs. CFP match requirements for requests up to $250,000 are 10% eligible project costs. For requests over $250,000 to $1 million, match is 15%. 15. Economic Development Grants for Public Works and Development of Facilities. The U.S. Department of Commerce and Economic Development Administration (EDA) provide grants to states, counties and cities designated as redevelopment areas by EDA for public works projects that can include developing trails and greenway facilities. There is a 30% local match required, except in severely distressed areas where the federal contribution can reach 80%. 4.3.3 OPERATIONAL FUNDING FOR SPORTS AND RECRE ATION FACILITIES Sports and recreation facilities have numerous revenue sources to draw from to support operational and management costs that include long term capital replacement costs. The following are funding options to consider: 1. User fees. In many instances, user fees to access or use a sports or recreation facility are utilized. Fees can range from $3-$5 per participant to $400 per team in a sports league. Las Vegas provides some of the best outdoor facilities in the United States. 2. Concessions. Concessions can be leased out to a private operator for a percentage of gross profits. Typically, 15%-18% of gross profits for concessions of a profit operator, or a managing agency over the site could manage concessions. 3. Parking Fees. During major special tournaments, the City could charge a $5 parking fee for soccer, baseball, or softball tournaments. 4. Field Permits. The City can issue field permits for practice or games. Permits should cover the operational cost of each field and management costs. If a private operator desires to rent a site or facility for a sporting tournament for private gain, the City should provide a permit fee plus a percentage of gross from the event. The City of Las Vegas, Nevada has started to incorporate this arrangement on its 22 field soccer complex. 54

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5. Admission Fee. An admission fee to an event in a park, sports or recreation complex can be utilized. In many instances, sports complexes usually include an admission fee and a parking fee for major sports tournaments. High School sports tournaments typically include an admission fee. 6. Tournament Fees. Tournament fees for softball, baseball, soccer can be assessed for each team who enters a tournament and can range from $150-$400 a team, which can vary based on the number of games guaranteed. 7. Official Drink. Official drink and food sponsors can be utilized throughout the system or at specific parks or recreation facilities. Each official drink and food sponsor would pay back to the site a set percentage of gross. Typically this is 5%-10% of costs for being the official product and receiving exclusive pouring and food rights to the complex. Likewise official equipment sponsors work well for trucks, mowers, and tractors. 8. Scoreboard Sponsors. Scoreboard sponsors pay for the cost of the scoreboards for the life of the board, which is usually 15 years. 9. Official Product Sponsors. Official product sponsors for balls, shoes, hats, gloves, etc. can be used throughout the system. The sponsor prices can vary by how much exposure is received and the amount of sales created. 10. Advertising Sales. Advertising sales on sports complexes, scoreboards, gym floors, trash cans, playgrounds, in locker rooms, at dog parks, along trails, flower pots, and as part of special events held in the City to help support operational costs have been an acceptable practice in parks and recreation systems for a long time and should be considered for the Department to support operational costs. 11. Wi-Fi Revenue. The City can set up a Wi-Fi area whereby a Wi-Fi vendor is able to sell the advertising on the Wi-Fi access banner to local businesses targeting the users at a specific site or facility. 12. Cell Tower. Cell tower leases on top of sports lights can be used. This revenue source could support $35,000-$50,000 annually for a site if cell towers are needed in the area. 13. Program Fees. Program Fees to support existing programs at each attraction can be employed in the form of lessons, clinics, camps, life skill programs, and wellness and fitness. These types program would help support the operations of a facility and a park. 14. Capital Improvement Fee. A Capital Improvement Fee on all programs and events can be added. A park such as a sports complex site will require an on-going maintenance endowment to keep the park and amenities updated and positioned for the future. A capital asset fee of $2-$3 on each person who participates in a class, event, or program can be incorporated into the cost of the program or event. 15. Volunteerism. The revenue source is an indirect revenue source in that persons donate time to assist the complex in providing a product or service on an hourly basis. This reduces the City’s cost in providing the service plus it builds advocacy for the park system. 16. Special Fundraiser. Many agencies hold special fundraisers on an annual basis to help cover specific programs and capital projects to be dedicated for the parks system.

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17. Private Management of Elements the Park System. The City should consider outsourcing elements of the park system to save operating money where appropriate. 18. Recycling Center. A sports complex or recreation facility will create a large amount of recycling materials from cans to water bottles that can be recycled and used as a funding source. 19. Friends of Sports. Recreation facilities and sports complexes lends itself to a host of friends groups established to support individual sports that can include assisting with tournaments, special sport fundraising, training of coaches, and clean-up days at a complex or recreation facility. 20. Catering. Many recreation facilities and sports complexes set up well to have high, medium or low level caterer on site that sports groups or groups can utilize. Caterers usually provide the city with a fixed gross rate on food and beverage at 12-15% of the cost of food and 18% of drink back to the city. 4.3.4 OPERATIONAL FUNDING FOR PARK AND RECRE ATION OPERATIONS 1. Bike Belong. Bike Belong is a not for Profit Group that makes small grants in the $10,000 range for bike trails, bridges, facilities for influential trails to enable leveraging federal funds. Located in Boulder Colorado. 2. American Hiking Society. The American Hiking Society fund on a national basis for promoting and protecting foot trails and the hiking experience. 3. The Helen R. Buck Foundation. Provides funding for playground equipment and recreational activities. 4. Deupree Family Foundation. Provides grants for Recreation, parks/playgrounds, and children/youth, on a national basis. This foundation supports: building/renovation, equipment, general/operating support, program development and seed money. 5. The John P. Ellbogen Foundation. Children/youth, services grants as well as support for capital campaigns, general/operating support, and program development. 6. Recreation Program Fees. Program Fees at each attraction can be employed in the form of lessons, clinics, camps, life skill programs, and wellness and fitness. These types program would help support the operations of a facility or park. 7. Race Sponsors Fees. Race sponsor fees can be applied for various types of run/walk/bike races. The users pay a fee to participate and race sponsors support the event itself. The city usually gets $3-5 dollars per participant for exclusive use of a park for a run or walk event. 8. Special Event Sponsors. The City provides great venues for groups to host special events. An admission fee could be included in the cost of the special event or concert. Sponsor fees must cover the cost of stages, security, and entertainment. Sponsorship for the stage, entertainment and activities would be available and a good revenue resource along with concert tickets. Sponsor come in the form of title sponsor, presenting sponsor and product sponsors. 9. Lease of Office and Storage Space. The City can consider leasing excess space to partnering agencies and sports groups for offices and storage. Office space should be in the $8-$10 a square foot and storage space at $3-$4 a square foot. 56

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10. Membership Fees for Recreation Facilities and Aquatic Center. The city is already creating some membership and admission fees to their recreation and aquatic centers, but it could be applied to their special use facilities as well. 11. Corporate Naming Rights. In this arrangement, corporations invest in the right to name an event, facility, or product within a park in exchange for an annual fee, typically over a ten-year period. The cost of the naming right is based on the impression points the facility or event will receive from the newspapers, TV, websites, and visitors or users to the park. Naming rights for park and recreation facilities are typically attached to sports complexes, amphitheaters, recreation centers, aquatic facilities, stadiums, and events. Naming rights are a good use of outside revenue for parks, recreation facilities or special attractions in the City. 12. Corporate Sponsorships. Corporations can also underwrite a portion or all of the cost of an event, program, or activity based on their name being associated with the service. Sponsorships typically are title sponsors, presenting sponsors, associate sponsors, product sponsors, or in-kind sponsors. Many agencies seek corporate support for these types of activities. 13. Maintenance Endowment Fund. This is a fund dedicated exclusively for a park’s maintenance, funded by a percentage of user fees from programs, events, and rentals. 14. Park Revolving Fund. This is a dedicated fund to be used for park purposes only that is replenished on an ongoing basis from various funding sources such as grants, sponsorships, advertising, program user fees and rental fees within the park. The Department could establish a revolving fund supported by one or more funding sources identified in this section. This would work for the sports complexes. 15. Permit Fees. This fee has been incorporated for exclusive reservation for picnic shelters, sports fields, special events provided by the Department, and competition tournaments held in the city by other organizations. Permit fees include a base fee for all direct and indirect costs for the city to provide the space on an exclusive basis plus a percentage of the gross for major special events and tournaments held on City owned permitted facilities. These dollars could be applied to the Park Revolving Fund to help support park improvements. 16. Conservancy or Friends Organization. This type of nonprofit is devoted to supporting a specific park. These Park Conservancy’s or Friends Groups are a major funding sou rce. 17. Adopt-an-Area of a Park. In this approach local neighborhood groups or businesses make a volunteer commitment to maintaining a specific area of a park. Adopt-a- area of a Park arrangements are particularly well-suited for the Department. 18. Adopt-A-Trail Programs. These are typically small grant programs that fund new construction, repair/renovation, maps, trail brochures, facilities (bike racks, picnic areas, birding equipment) as well as provide maintenance support. Adopt a trail program is similar to adopt a mile of highway program. Adopt-A-Trail programs can also be in the form of cash contributions that typically include a range of $12,000 to $16,000 a mile to cover the total operational costs. 19. Community Service Workers. Community service workers are assigned by the court to pay off some of their sentence through maintenance activities in parks, such as picking up litter, removing graffiti, and assisting in painting or fix up activities. Most workers are assigned 30 to 60 hours of work. This would seem to be a good opportunity for the parks to work with the police department on using community service workers. 57

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20. Park Admission Fees: Admission fees to access programs and facilities is a well-accepted management tool based on the value of the experience and the level of exclusive use a user has over a general taxpayer.

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- CONCLUSION AND TRANSITION PLAN
The Parks, Recreation and Neighborhood Services Department has a great history of providing excellent services to the residents of Las Vegas. Over the last five years there have been many changes to the Department that has disrupted the culture of the organization and the moral of the staff tremendously. This has created a very negative work environment for the staff. The Pricing Policy and Revenue Plan has evaluated the culture of the organization to change its ability to support the City’s Structural Budget requirements and has created many recommendations that can change the direction of the Department to become more self- sufficient while still providing excellent customer service in a positive work culture. These recommendations are outlined in the Plan and focuses on the following:       Organizational Design and Communications Recommendations Data Tracking and Cost of Service Assessment Recommendations Pricing Recommendations Development of a Pricing Policy Development of Earned Income Opportunities to Offset Operational Costs Action Plan to Achieve Success

There is no question about the Departments capability to meet the recommendations. It will require the support of the City Manager’s office and City Council to make these recommendations a reality. The Department has great park and recreation professionals that are capable of leading the Department through the process given the opportunity. Great Challenges when met lead to great results. The City Manager has outlined five key strategies for staff to follow:      Our Core Purpose: Build Community to Make Life Better Business Definition: We Run The City Core Vales: Action Strategic Anchors: Sustainable, Iconic, and Service Value Thematic Goal: A common issue to work toward

The Department can meet these goals if allowed to implement the recommendations in the Pricing Policy and Revenue Plan. The Department can make life better for users of the system. They can provide great parks, facilities and services to residents and visitors of the City. They can put these recommendations in Action immediately, they can become more Sustainable, Iconic and provide Service Value. They can support a Thematic Goal: A common issue to work toward in meeting the outcomes desired by the City Manager and City Council. Now is the time to recapture the Vision and Mission of the Department: Our Vision is to be “A world-class, vibrant, affordable, economically and ethnically diverse, progressive city where citizens feel safe, enjoy their neighborhoods and access to city government”. Our Mission is to provide recreation, education, neighborhood resources and human services to residents, visitors and businesses so they can enjoy a higher quality of life that promotes healthy lifestyles and engaged and sustainable neighborhoods. 59