AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: ALISON DOBAY
PARKS, RECREATION, AND LIBRARY SERVICES MANAGER
ALYSSA CHRISTENSON
MANAGEMENT ASSISTANT
SUBJECT: PROPOSED UPDATES TO FEE WAIVER REQUESTS FOR USE OF CITY FACILITIES POLICY
title
summary
Summary:
The City regularly reviews Parks, Recreation and Library Services Department policies to align with current practices and standards, remove obsolete or redundant language, and integrate best practices compliant with the law. The Parks and Recreation Commission (Commission) reviews fee waiver requests for the use of facilities and the total fees waived on a monthly basis. Last fall, the Commission requested to review the existing City of Signal Hill Parks, Recreation and Library Services Department Policy 4.16 - Fee Waiver Request for Use of City Facilities Policy (Policy) after receiving several requests that did not meet the existing criteria for a fee waiver. Staff prepared recommendations for an updated Policy, and in February 2026 the Commission reviewed proposed updates and provided additional feedback for the City Council’s consideration. The proposed draft Policy updates criteria for fee waiver eligibility, establishes new categories that would enable organizations to request a fee reduction, and defines procedures to submit a request.
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
Recommendation:
Staff requests the City Council review and approve the draft City of Signal Hill Parks, Recreation, and Library Services Department Policy 4.16 - Request for Modified Fee or Fee Waiver Request for Use of City Facilities (Policy) for immediate implementation.
body
Fiscal Impact:
There is no fiscal impact associated with the recommendation. However, staff anticipates that there may be additional revenue from organizations that request a modified (discounted) fee as opposed to a full fee waiver, which had not previously been an option.
Background:
The Parks, Recreation, and Library Services Department has an existing set of standard management policies and procedures that provide a systematic approach to conduct business. Staff is in process of reviewing and updating the policies, including policies specifically related to Facility Use Permits and Rentals. The City last reviewed the current Fee Waiver Request for Use of City Facilities Policy 4.16 in 2017 (Attachment A). Last fall, the Commission requested to review the existing Policy and requested staff propose updates for further consideration and subsequent discussion by the City Council.
Since 2020, staff collaborated with organizations that provide a variety of benefits to the community, particularly during challenging times resulting from the Covid-19 pandemic. Some of these new partnerships include organizations that do not meet the exact requirements of the City’s adopted Policy. With the increased request for fee waivers, staff identified the need to better define the types of organizations seeking fee waivers and provide a clear process that benefits the City as well as the organizations seeking fee waivers. Additionally, a revised policy would provide direction when developing guidelines and procedures associated with the new Signal Hill Amphitheater.
There is one agreement referenced in the 2017 iteration of the Policy that is no longer applicable related to the Lions Club, and another established process via City Council minute order that addresses Signal Hill Homeowners Associations (Attachment B). The agreement identified in the 2017 Policy references the waiving of rental fees for the Signal Hill Lions Club. However, the Signal Hill Lions Club has not been active for more than 10 years. The City Council minute order from July 8, 2003, establishes that staff waive rental fees for Signal Hill Homeowners Associations (HOA) to hold meetings at a City facility. Each Signal Hill HOA is eligible to hold two meetings per year at no cost to the association. Further, the minute action indicated the Commission would review the protocol after implementation for recommendations in the future.
The Parks and Recreation Commission initially requested a review of the existing Policy to consider modifications that would better align with current practices and better meet the evolving trends of partnership groups. In February 2026, the Commission subsequently reviewed the proposed updates. The Commission provided additional feedback for consideration including the addition of broader organization categories allowing these to be considered for fee waivers or reduced fees; establishing eligibility criteria for organizations; and types of fees applicable for a waiver.
Analysis:
With the development of new partnerships with community organizations outside the City, and as recommended by the Parks and Recreation Commission, staff proposed updates to the Policy to better reflect current operational needs and current collaborative partnerships (Attachment C). Staff reviewed the Policy and recommended updated criteria for organizations to request a fee reduction, updated organization categories and definitions, types of fees eligible for a reduced fee or fee waiver, and the procedures to submit a request. Moreover, the current Policy does not include categorical definitions for organizations and stipulates four criteria that are limited in nature. Additionally, there is not a clear process for applicants to submit a facility fee waiver request. Per the current policy, applicants must meet all the criteria listed below to be eligible for consideration.
1. The applicant must be a Signal Hill Resident;
2. The 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. Signal Hill residents must comprise at least 51% of the organization’s voting board.
Facility use and reservations were limited several years before 2022 due to the COVID-19 pandemic; thus, staff evaluated the available information for a four-year period between 2022 and 2025. Between 2022-2025, only 4 of 13 organizations met all criteria to be considered for a facility fee waiver under the Policy requirements. The City, under the auspices of the Commission and City Council, provided fee waiver exceptions for certain the organizations, including those not based in Signal Hill, because of the community benefits their partnerships provided to the City. For reference, the following groups requested fee waivers between 2022-2025:
|
Signal Hill Community Foundation |
|
Friends of the Signal Hill Library |
|
Signal Hill Historical Society |
|
Long Beach Mineral & Gem Society |
|
Springs of Hope Grief Center |
|
Signal Hill Chamber of Commerce |
|
Assemblymember Josh Lowenthal’s Office |
|
Alvarado Elementary School |
|
Long Beach Unified School District Cross Country |
|
Long Beach Non-Profit - Sustainable Health |
|
Bixby Ridge Homeowners Association |
|
Raymond Heights Homeowners Association |
|
Promontory West Bluff Homeowners Association |
Although the City approved these waiver exceptions and the organizations provided valuable benefits to the community, processing non-standard fee waiver requests requires additional coordinating by personnel in the department. To continue to provide residents with the benefit of these partnerships, the language in the Policy would need to include clarifying language to eligibility requirements, allow for non-Signal Hill organizations to qualify for a reduced fee, and identify various group types that may not necessarily meet the four existing criteria.
Staff reviewed the financial impact of facility and staff fees that have been waived, as well as facility rental revenue between 2022-2025.
Facility and Staff Fee Revenue
|
|
2022 |
2023 |
2024 |
2025 |
|
Facility Rentals Charges |
$31,645 |
$52,118 |
$35,277 |
$37,269 |
|
Waived Fees |
($14,510) |
($32,408) |
($18,024) |
($21,132) |
|
|
|
|
|
|
|
Actual Facility Revenue |
$17,135 |
$19,710 |
$17,253 |
$16,137 |
|
|
|
|
|
|
|
Total Actual Facility Revenue for 2022-2025 $70,235 |
Upon historical review of fee waivers and the annual revenue generated by facility reservation fees, staff determined the City waived more than 50% of the total facility reservation revenue over a four-year period.
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 any legal principles. Implementing a modified fee or fee waiver 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 and justify 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 performed a comparative analysis of neighboring cities, as well as additional cities throughout California, regarding fee waiver policies and reduced fee rates. Staff analyzed fee waiver policies and fee rates for Long Beach, Lakewood, Hawaiian Gardens, Los Alamitos, and Lynwood. 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.
The analysis focused on the following areas:
• Criteria for Fee Waivers
• Organization Categories and Organization Definitions
• Type of Fees
• Consideration of Fee Reductions
In July 2003, City Council approved HOA groups to hold two meetings per year at no cost to the association via minute order. After analyzing other cities policies, staff included HOA groups as an organization category, and this update is reflected in the proposed draft Policy.
Criteria for Fee Waivers
Many cities identify a set of qualifying criteria and non-qualifying criteria for fee waivers and/or reductions; staff has listed these criteria under the following sections:
Criteria Eligible for Fee Waivers or Fee Reduction:
• The group is considered to be in good standing with the City, which includes but is not limited to, having no outstanding fees, or debts overdue with the City and documented history of compliance with previous City Facility use policies and procedures.
• The event or program is consistent with the City’s mission, values and objectives.
• There are no detrimental impacts on the existing facilities or City activities.
• There is a benefit to the Signal Hill residents.
• The 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.
• The 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
Consideration of Fee Reductions
In February 2026, the Commission recommended offering a reduced fee waiver option, rather than only having the option for groups to request a 100 percent fee waiver. A reduced fee waiver would ensure the City is able to recover a portion of the costs associated with facility use, while still allowing groups that may not be based in Signal Hill or meet the limited criteria to provide services and public benefits to residents. This balanced approach supports community partnerships without compromising the responsible stewardship of public funds.
Conclusion
The updated policy provides a clear path forward for both applicants and staff. In addition, a more defined framework with a more comprehensive range of organization categories and criteria creates an opportunity for broader, more diverse service offerings and would better accommodate community groups that have historically applied as well as new organizations seeking to apply for fee waivers in the future.
Staff is presenting the final draft of the Request for Modified Fee or Fee Waiver Request for Use of City Facilities Policy to the City Council for review and approval. If approved, staff would continue to work with City’s consultant, ClearSource, to include reduced and modified fees on the City’s Master Fee Schedule that the Finance Department would present alongside the upcoming budget in June.
Approved:
Reviewed for Fiscal Impact:
_________________________
Siamlu Cox
Attachment(s):
A. Redlined Version Policy 4.16 Fee Waiver Request for Use of City Facilities
B. City Council Meeting Minutes 07-08-2003
C. Final Draft Policy 4.16 Request for Modified Fee or Fee Waiver Request for Use of City Facilities