City Council Meeting: March 25,
2008
Agenda Item: 1-G
To: Mayor and City Council
From:
Subject: Adoption
of a resolution establishing use fees for surfing instruction and youth sand
camps on
Recommended
Action
Staff recommends that
Council adopt the attached resolution establishing use fees for surfing instruction and youth
sand camps operating on
Executive
Summary
The City Council, on January 22,
2008, adopted revisions to Santa Monica Municipal Code (SMMC) sections 4.08.025
and 4.08.060 authorizing the regulation of commercial surfing instruction and
youth sand camps on
Discussion
On January
22, 2008, in an effort to address beach use conflicts and water safety issues,
the City Council approved revisions to SMMC 4.08.025 and 4.08.060 to:
1) prohibit surfing
instruction, training, or coaching for
compensation, without a permit issued by the City;
2)
require groups of more than 20 children, if entering the water, to obtain a
permit; and
3) require
payment of application fees and/or percentage of gross receipts, depending on
the activity.
The
revenue collected will go into the Beach Fund and be used to off-set expenses
related to the administration of such permits and for maintenance of beach
facilities.
Staff recommends the Permit Fee for both Surfing Instruction and
Beach/Water Activity Permits be set at $150.
The proposed fee is based on all anticipated costs to the City, which
include only anticipated staff hours required to develop a Request for
Proposals, evaluate proposals, and process permits as follows:
|
Position |
Hourly Rate incl. benefits |
Anticipated
Staff Hours Associated with Process |
Total |
|
Open Space Management Division Staff Assistant
III, Step 2 |
$25.39 |
4 |
$101.56 |
|
Open Space Management Division Senior
Administrative Analyst, Step 5 |
$50.75 |
1 |
$50.75 |
|
|
|
|
$152.31 |
Surfing Instruction and Beach/Water Activity Permit Request for
Proposals, applications, and permits will be developed and processed by a Staff
Assistant III and a Senior Administrative Analyst. Along with development of an annual Request
for Proposals, each permit will require four hours of a Staff Assistant III’s
time and one hour of a Senior Administrative Analyst’s time to review and evaluate
the proposal, check references, examine financial statements, collect and
review the required certifications and insurance, coordinate site assignments with
the Lifeguards, prepare and issue the permit, maintain records and respond to inquiries
related to the permit. The resulting
cost of each permit is $152.31. Staff
recommends rounding off the cost to $150.
The proposed fee is similar to the fee charged by
The Permit Fee shall apply to permitted providers of surfing instruction and youth sand camps. In addition, pursuant to SMMC 4.08.060, surfing instructors also must pay a percentage of their gross receipts, which at a minimum shall be ten percent. The exact percentage of gross receipts will be proposed by each applicant during the public bidding process and will be considered during proposal evaluation. Greater consideration will be given to proposers with the highest percentage of gross receipts bid. Typically, surfing instructors bid between 10-30% of gross receipts to the managing authority. Because gross receipts reflect the volume of business conducted on the beach, utilizing a “percentage of gross receipts” fee structure will establish fees proportional to the use of public facilities and services.
Financial Impacts &
Budget Actions
Adoption
of the proposed fees, including the Permit Fee and the Percentage of Gross Fee,
will create a new revenue source for the Beach Fund. Staff estimates FY 2008/09 revenues to be
$39,700. Because these fees are being
established late in the fiscal year, revenues collected during FY 2007/08 are
expected to be approximately one third of those projected for FY 2008/09.
Attachment: Fee
Resolution
Prepared by: Trinie
García-Valdez, Community Use Administrator
|
Approved: |
|
Forwarded to Council: |
|
|
|
|
|
Director,
Community and Cultural Services |
|
P. City Manager |
ATTACHMENT A
City Council
Meeting:
RESOLUTION NUMBER _____ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF
AND USE FEES FOR SURF INSTRUCTION
AND YOUTH SAND CAMP PERMITS
WHEREAS, to maintain water safety and maximize public recreational opportunities, it is necessary for the City of Santa Monica to regulate surfing instruction on Santa Monica State Beach; and
WHEREAS, the City of Santa Monica anticipates receiving a large number of proposals for surfing instruction and beach/water activity permits as authorized by Santa Monica Municipal Code Sections 4.08.025 and 4.08.060; and
WHEREAS,
the City of
WHEREAS, the fees established by this Resolution are no more than necessary to recover the costs of the service provided;
NOW, THEREFORE, THE CITY COUNCIL OF THE
CITY OF
SECTION 1: The Permit Fee for authorization to provide
surfing instruction or conduct beach/water activities on
SECTION 2: An additional Percentage of Gross Receipts
Fee shall be charged for authorization to provide surfing instruction on
SECTION 3. The fees set forth in this Resolution shall be effective upon the effective date of Santa Monica Municipal Code Sections 4.08.025 and 4.08.060.
SECTION 4. The Permit Fee set forth in this resolution shall also be subject to Consumer Price Index (CPI) increases each subsequent July 1st. The CPI increase factor shall be the annual rate increase from February to February of the Los Angeles-Anaheim-Riverside Consumer Price Index for Wage Earners and Clerical Works published by the United State Department of Labor, Bureau of Labor Statistics.
SECTION 5. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_____________________________
Marsha Jones Moutrie, City Attorney