AGENDA ITEM
TO:
HONORABLE CHAIR
AND MEMBERS OF THE PARKS AND RECREATION COMMISSION
FROM:
YVETTE E. AGUILAR
DEPUTY CITY MANAGER/PARKS, RECREATION AND LIBRARY SERVICES DIRECTOR
BY: ALYSSA CHRISTENSON
MANAGEMENT ASSISTANT
SUBJECT:
title
PROPOSED UPDATES TO THE PARKS, RECREATION & LIBRARY SERVICES OPERATIONS STANDARD MANAGEMENT POLICY 4.16 (WAIVER OF FEES FOR CITY FACILITIES)
summary
Summary:
The Parks, Recreation, and Library Services staff routinely review existing department policies and propose changes to update current practices and regulations, remove obsolete or redundant regulations, and generally integrate best practices. Staff, in collaboration with the City Attorney’s office, have prepared proposed updates to the Parks, Recreation and Library Services Department operation standard management policy 4.16 - Waiver for Fees for City Facilities. Staff request that the Commission provide feedback to staff regarding proposed updates to clarifying language, criteria, definitions, and categorization. The proposed policy amendments outline updated criteria required for an organization to submit a fee waiver; the basic procedures to submit a fee waiver; and includes language to address organizations that have special agreements or terms for fee waiver requests that predate current management.
Strategic Plan Goal(s):
Goal No. 1: Financial Stability: Ensure the City’s long-term financial stability and resilience.
Goal No. 5: High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City Services.
recommendation
Recommendation:
Staff request the Parks and Recreation Commission provide feedback to staff on the following items:
1. Organization categories and definitions.
2. Criteria of organization’s eligibility criteria for a fee waiver.
3. Types of fees applicable for a waiver.
4. Proposed consideration of fee reductions.
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Background:
The Parks, Recreation and Library Services Department has an existing set of policies (Policies) and procedures that provide a systematic approach to conduct department business. Staff are in process of reviewing and updating the Department’s standard management policies, including policies specifically related to Facility Use Permits and Rentals. In addition, upon historical review of fee waivers and the annual revenue generated by facility reservation fees, the fees waived totaled approximately 50% of the total facility reservation revenue. There was a specific interest by the Commission to review Policy 4.16 which outlines the policies and procedures for Waiver of Fees for City Facilities.
The Waiver of Fees for City Facilities Policy 4.16 was last reviewed in 2017. After program and service modifications resulting from the COVID-19 pandemic, staff recognized a need to collaborate with outside organizations to continue to provide for evolving community needs. Due to new types of partnerships and collaborations, staff reviewed the policy and identified the need to better define the types of organizations seeking fee waivers and provide a clear process that benefits the City of Signal Hill and organizations seeking fee waivers or reductions. Additionally, with the construction of the new Signal Hill Amphitheater and the acquisition of property located on 21st Street and Cherry Avenue, the new public amenities may also be considered for a fee waiver.
There are two special agreements listed in the 2017 iteration of the policy that may need to be updated depending on their current relevance. One special agreement identified is the waiving of rental fees for Signal Hill Homeowners Associations (HOA) to hold meetings at a City facility. This stipulation is based on a City Council minute action from July 8, 2003 that approved each Signal Hill HOA to hold two meetings per year at no cost to the association. Another special agreement listed in the current policy is the waiving of rental fees for the Signal Hill Lions Club. However, the Signal Hill Lions Club has not been active for the last ten years or more.
Analysis:
The Parks and Recreation Commission requested that staff review policy 4.16 - Waiver for Fees for City Facilities to better reflect the types of organizations seeking fee waivers (Attachment A). Various sections of the policy no longer accurately reflect current community partnerships. For example, many organizations that requested fee waivers in the last few years did not meet the eligibility criteria listed in the policy. However, these organizations provided regular community benefits to Signal Hill residents. Because these organizations add value to the Signal Hill community, staff recommend continuing to maintain partnerships with community organizations that have consistently provided programs to the Signal Hill community.
Moreover, the current policy does not include sufficient information on organization categories and criteria and there is not a clear process for applicants to submit a facility fee waiver request.
Between 2022-2025 the following groups requested fee waivers:
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Signal Hill Community Foundation |
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Friends of the Signal Hill Library |
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Signal Hill Historical Society |
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Long Beach Mineral & Gem Society |
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Springs of Hope Grief Center |
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Signal Hill Chamber of Commerce |
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Assemblymember Josh Lowenthal’s Office |
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Alvarado Elementary School |
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Long Beach Unified School District Cross Country |
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Long Beach Non-Profit - Sustainable Health |
Between 2022-2025, the following Homeowners Associations utilized City facilities for their meetings:
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Bixby Ridge Homeowners Association |
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Raymond Heights Homeowners Association |
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Promontory West Bluff Homeowners Association |
Per the current policy, applicants must meet all the criteria listed below to be eligible for consideration. Only four of the 13 organizations met all criteria to be considered for a facility fee waiver under the policy requirements. Fee waiver exceptions were made for many of the organizations because of the community benefits their partnership was deemed to provide by the Parks and Recreation Commission or City Council, based on the fee waiver request. Applicants must meet all the following criteria to be eligible for a fee waiver:
1. The applicant must be a Signal Hill Resident;
2. The individual or organization must have nonprofit status with the Internal Revenue Service;
3. The organization’s primary focus must be on serving the residents of Signal Hill; and,
4. The organization’s voting board must be comprised of at least 51% Signal Hill Residents.
Each fee waiver request has been specific and unique, which required additional personnel in the department to review the submitted requests for consideration. Updating the policy to include clarifying language and making modifications to eligibility requirements that more closely align with new and emerging community groups demographics, while recognizing the diverse benefits these groups provide to Signal Hill’s diverse community, would help to create a clearer, more streamlined, and efficient review process.
Creating a more relevant and comprehensive policy would provide a clear path forward for both applicants and staff. In addition, a more defined framework with a broader range of organization categories and criteria would create an opportunity for broader, more diverse service offerings and better accommodate community groups that have historically applied as well as new organizations seeking to apply for fee waivers in the future.
Staff reviewed the financial impact of facility and staffing fees that have been waived between 2022 and 2025, listed in the chart below. Facility use and reservations were limited several years before 2022 due to the COVID-19 pandemic; thus, the data used for this report took place between 2022 and 2025. Facility fee waivers that requested consideration for staff fee waivers were presented to and approved by City Council.
|
|
2022 |
2023 |
2024 |
2025 |
|
Facility Fees Waived |
$14,030 |
$29,177.50 |
$17,443.50 |
$19,573.25 |
|
Staff Fees Waived |
$480 |
$3,230 |
$580 |
$1,558 |
|
|
|
|
|
|
|
Total Fees Waived |
$14,510 |
$32,407.50 |
$18,023.50 |
$21,131.25 |
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|
|
|
|
|
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Total Fees Waived between 2022-2025 $86,072.25 |
Implementing a fee waiver or fee reduction policy requires adherence to state and federal law. Specifically, the City must be aware and ensure the following legal issues are accounted for and complied with:
1. Cross-subsidy: The lost revenue from the fee waiver/reduction must be funded with non-fee payer revenue (i.e., unrestricted funds such as the City’s general fund). The City is prohibited from creating a cross-subsidy whereby some applicants pay more than their proportionate cost of the requested service to offset the lost revenue from the waived/reduced fees of other applicants.
2. Gift of Public Funds Doctrine: Any time a public agency provides a waiver/reduction in its established fees, there is a risk of violating the gift of public funds doctrine. In short, public agencies are prohibited from providing public funds to private individuals. An exception to this prohibition is if doing so provides a public purpose. Therefore, the City needs to be able to articulate the public purpose behind its fee waiver/reduction policy.
3. Equal Protection: The policy must ensure fee waivers/reductions are applied equally and consistently across all applicants. This means all similarly situated applicants receive the same consideration for their application to waive/reduce fees. This may come into play particularly when deciding whether to fully waive versus only reduce fees for certain applicants.
Staff conducted extensive research and consulted with the City Attorney’s office to ensure the proposed updates and considerations for the City’s fee waiver policy do not violate these legal principles. Staff reviewed neighboring cities’ facility fee waiver policies including Lakewood, Hawaiian Gardens, Torrance, Paramount, Compton, Norwalk, Downey, Lynwood, Los Alamitos, Cerritos, Artesia and Bellflower. To gain a broader pool of data, staff then expanded research to additional cities throughout California.
While some cities had no written policies or specific procedures relating to facility fee waivers, other cities did have robust written policies and outlined procedures. In addition to fee waivers, some cities have the option of reduced rates in place of fee waivers. After gathering wide-ranging information on facility fee waivers and reduced fee rates, staff performed a comparative analysis while focusing on:
1. Criteria for Fee Waivers
a. Eligible Fee Waivers or Reductions
b. Not Eligible for Fee Waivers or Reductions
2. Organization Categories and Organization Definitions
3. Type of Fees
a. Fees Eligible for Waiver
b. Fees Eligible for Reduction
c. Fees Not Eligible for Waiver or Reduction
4. Consideration of Fee Reductions
Criteria for Fee Waivers
Many cities identify a set of qualifying criteria and non-qualifying criteria for fee waivers and/or reductions. This criteria is listed under the following sections.
Criteria Eligible for Fee Waivers or Fee Reduction:
• The group is considered in good standing with the City.
• The event or program is consistent with the Department's mission, values and objectives.
• There are no detrimental impacts on the existing facilities or department activities.
• There is a benefit to the Signal Hill residents.
• Program or event is non-discriminatory and non-political nature.
• Primary mission of organization is philanthropic and/or service-driven for the benefit of the community.
• Event or program is open to the public at no charge.
Criteria Not Eligible for Fee Waivers or Fee Reductions:
• Political activities and supporting or endorsing any candidate for office, ballot measure, or other political measure.
• Commercial events.
• Corporate events.
• Private family or social gatherings.
• Trainings that charge for participation.
• Events that provide no community benefit.
• Projects or organizations that have failed to fulfill their obligations during previous events or activities for which facility permit fees were waived or reduced.
• Profit will be made from the event by the permitting organization or by any other private individual or business.
• Commercial or for-profit individual, group or organization.
• Event, program or activity that, as determined by the City, substantially strains available City resources, such as but not limited to: staffing, materials, equipment, and services.
• Program, event, or meeting that references drug-use, drug paraphernalia, gambling, sex, adult oriented business, explicit language, or material.
Organization Categories and Organization Definitions
After reviewing general organization categories from 12 different cities, staff identified the following list of organization categories and definitions that could be relevant to Signal Hill and local community groups.
• Official City Partner/City Affiliated Organization
o An official affiliate is an organization or individual that has a formal agreement or MOU with the City.
• Intergovernmental Groups/Government Agencies
o Applicants are governmental entities (city, county, state, federal or special district); and,
o The use of the facility is related to the performance of the agency’s governmental duties; and,
o The program or event provides a benefit to Signal Hill residents.
• Resident Non-Profit
o Organization resides within City or at least 51% of the organization’s voting board is made up of city residents; and,
o Demonstrate official documentation or Non-Profit Status.
• Non-Resident, Non-Profit
o Organization resides outside of City; and,
o Demonstrate official documentation or Non-Profit Status; and,
o Program or event is open to the entire public at no charge; and,
o Program or event provides a valuable benefit to Signal Hill residents.
• Schools and School Groups
o Public Long Beach Unified Schools, private schools in the City of Signal Hill or Long Beach or home schools in the City of Signal Hill serving students K-12; and,
o Any school-based clubs, boosters, social or sports groups that support students that live in Signal Hill; and,
o School Groups must provide a letter from their school identifying the group as an official group, as well as insurance coverage from the school
• Civic Organizations/Groups
o A group or organization that seeks to improve the community and promote social welfare; and,
o Verification of status as a mission-based organization
Possible examples of civic organizations/groups are:
o Local Community Service Clubs
o Social Service Groups
o Membership/Recreation Groups
o Community Group without official Non-Profit Status
• Homeowners Association/Neighborhood Associations
o Entity resides within the City or is comprised of at least 51% of city residents; and,
o Verification of status as an official neighborhood or homeowner association
Types of Fees
Based on the types of fees that different cities choose to waive when it comes to the rental of city facilities, staff recommend the following:
• Eligible Fees for Waiver or Reduction
o Facility Use/Reservation Fees
o Staffing Fees (Per City Council Approval)
o Jumpers and Bouncer Permit
• Fees Not Eligible for Waiver or Reduction
o Application Fees
o Refundable Damage Deposit
o Light Usage Fees
o Cleaning Fee
o Change Fees
o Security Costs
o Maintenance Costs
o Liquor License
o Food/Health Permits
o Business License Fees
o Insurance/Indemnification Fees
Staff are seeking feedback from the Commission on the items listed below.
1. Organization categories and how organizations are defined.
2. Organization’s eligibility criteria for a fee waiver.
3. Types of fees applicable for a waiver.
4. Whether or not fee reductions should be considered.
Staff will revise the policy to include feedback from the Commission, present the final draft to the City Council for final review and approval, and will include necessary fee updates as part of the Citywide Fee Schedule update.
Approved:
_________________________
Yvette E. Aguilar
Deputy City Manager/Parks, Recreation, And Library Services Director
Attachments:
A. Policy 4.16 Waiver for Fees for City Facilities