8.7

“Placerville, a Unique Historical Past Forging into a Golden Future”

City Manager’s Report October 27, 2020 City Council Meeting Prepared by: Matt Lishman, Recreation Superintendent Item #: 8.7

Subject: Adopt a resolution: 1.) Approving a $12.00 increase in the Adult 5x5 team registration fee from $469.00 to $481.00 per team effective January 1, 2021; and 2.) Approving a $5.00 increase in the Adult 3x3 Basketball team registration fee from $132.00 to $137.00 per team effective January 1, 2021; and 3.) Approving a $10.00 increase in the Adult 4x4 team registration fee from $175.00 to $185.00 per team effective January 1, 2021; and 4.) Approving a $12.00 increase in the Adult team registration fee from $526.00 to $538.00 per team effective January 1, 2021.

Purpose: To adjust the City’s Adult Basketball, Adult Volleyball, and Adult Softball team registration fees to recover the associated personnel cost increase.

Background: On January 1, 2020 California’s minimum wage increased $1.00 to $13.00 per hour and will increase again on January 1, 2021 by $1.00 to $14.00 per hour. This increase will have a financial impact on the City’s adult leagues.

Discussion: Staff conducted a fee comparison survey with similar agencies (Attachment A) and analyzed recent user data in order to attempt to establish new adult sports team registration fees that would generate additional revenue without discouraging participation. Given the current Covid-19 situation and the fact most of the adult leagues were canceled in 2020, staff is using the same assumptions as last year. Staff recognizes the importance of recreation programs remaining self- supporting. This can be accomplished through a variety of strategies including: a) increasing user fees, b) increasing program participation and attendance, and c) program reorganization.

Adult 5x5 Basketball The City’s Adult 5x5 Basketball League takes place at El Dorado High School in the large gym. Games are played year round on Sunday nights, with the exception of one month during summer when they resurface the gym floor. There are four leagues a year; winter, spring, late summer, and fall. An average of 18 teams participated per year over the last three years. Staff anticipates 16 teams will participate during the 2020-21 Fiscal Year.

The following table shows the anticipated cost increase in the 2020-21 fiscal year: Adult 5x5 Basketball 2019-20 Fiscal Year 2020-21 Fiscal Year Total Increase Part-Time Personnel Costs $2,985 $3,215 $230

This increase will have a financial impact on the Recreation Division’s annual operating budget for the 2020-21 Fiscal Year. In order to offset the additional expenditures in the Adult 5x5 Basketball League, Staff is recommending a team registration fee increase of $12.00, from $469.00 to $481.00 per team, effective January 1, 2021. This will put league fees in-line with similar surrounding agencies.

The following table shows the total projected revenue increase based on the proposed registration fee:

Adult 5x5 Basketball # of Teams Proposed Increase Additional Revenue

16 $12 $192

Adult 3x3 Basketball The City’s Adult 3x3 Basketball League takes place at Markham Middle School in the gym. Games are played year round on Wednesday nights. There are five leagues a year. An average of 40 teams participated per year over the past three years. Staff anticipates 40 teams will participate during the 2020-21 Fiscal Year.

The following table shows the anticipated cost increase in the 2020-21 Fiscal Year: Adult 3x3 Basketball 2019-20 Fiscal Year 2020-21 Fiscal Year Total Increase Part-Time Personnel Costs $2,439 $2,626 $188

This increase will have a financial impact on the Recreation Division’s annual operating budget for the 2020-21 Fiscal Year. In order to offset the additional expenditures in the Adult 3x3 Basketball League, Staff is recommending a team registration fee increase of $5.00, from $132.00 to $137.00 per team, effective January 1, 2021. Of the agencies we surveyed we are the only one that offers an Adult 3x3 Basketball League.

The following table shows the total projected revenue increase based on the proposed registration fee: Adult 3x3 Basketball # of Teams Proposed Increase Additional Revenue

40 $5 $200

Adult Volleyball The City’s Adult 4x4 Volleyball League takes place at the Markham Middle School in the gym. Games are played year round on Thursday nights. There are five leagues a year. An average of 21 teams participated per year over the past three years. Staff anticipates 21 teams will participate during the 2020-21 fiscal year.

The following table shows the anticipated cost increase in the 2020-21 Fiscal Year: Adult 4x4 Volleyball 2019-20 Fiscal Year 2020-21 Fiscal Year Total Increase Part-Time Personnel Costs $2,726 $2,936 $210

This increase will have a financial impact on the Recreation Division’s annual operating budget for the 2020-21 fiscal year. In order to offset the additional expenditures in the Adult Volleyball League,

S taff is recommending a team registration fee increase of $10.00, from $175.00 to $185.00 per team, effective January 1, 2021. This will put league fees in-line with similar surrounding agencies.

The following table shows the total projected revenue increase based on the proposed registration fee: Adult 4x4 Volleyball # of Teams Proposed Increase Additional Revenue 21 $10 $210

Adult Softball The City’s Adult Softball League takes place at Lions Park on the softball fields. Games are played nightly Sunday through Friday from April through October. There are three leagues a year; spring, summer, and fall. An average of 179 teams participated per year over the past three years. Staff anticipates 179 teams will participate during the 2020-21 fiscal year.

The following table shows the anticipated cost increase in the 2020-21 Fiscal Year: Adult Softball 2019-20 Fiscal Year 2020-21 Fiscal Year Total Increase Part-Time Personnel Costs $27,801 $29,617 $1,817

This increase will have a financial impact on the Recreation Division’s annual operating budget for the 2020-21 fiscal year. In order to offset the additional expenditures in the Adult Softball League, Staff is recommending a team registration fee increase of $12.00, from $526.00 to $538.00 per team, effective January 1, 2021. This will put league fees in-line with similar surrounding agencies.

The following table shows the total projected revenue increase based on the proposed registration fee: Adult Softball # of Teams Proposed Increase Additional Revenue 179 $12 $2,148

Options: 1.) Approve the proposed Adult Sports Team Registration Fees. 2.) Direct Staff to take other actions.

Cost: Operational costs associated with conducting the City of Placerville’s Adult Sports Programs have escalated to the point that Staff is recommending a team registration fee increase to take effect January 1, 2021.

The following table identifies the overall additional expense and the additional projected revenue associated with each program.

Program Additional Expenses Additional Revenue Balance Adult 5x5 Basketball $ 230 $ 192 $ (38) Adult 3x3 Basketball 188 200 12 Adult 4x4 Volleyball 210 210 - Adult Softball 1,817 2,148 331 Total $ 2,445 $ 2,750 $ 305

Budget Impact: The increased part-time personnel costs were assumed in the adopted Fiscal Year 2020-21 General Fund Budget. The proposed team registration fee schedule is shown on Attachment “B.” With the proposed team registration fees in place, the Adult Sports Programs will

most likely remain self-supporting, assuming participation levels remain consistent. Staff will continue to implement strategies to increase participation and analyze the effects of fee increases.

Recommendation: Adopt a resolution: 1.) Approving a $12.00 increase in the Adult 5x5 Basketball team registration fee from $469.00 to $481.00 per team effective January 1, 2021; and 2.) Approving a $5.00 increase in the Adult 3x3 Basketball team registration fee from $132.00 to $137.00 per team effective January 1, 2021; and 3.) Approving a $10.00 increase in the Adult 4x4 Volleyball team registration fee from $175.00 to $185.00 per team effective January 1, 2021; and 4.) Approving a $12.00 increase in the Adult Softball team registration fee from $526.00 to $538.00 per team effective January 1, 2021.

______M. Cleve Morris, City Manager Terry Zeller, Director of Community Services

______Dave Warren, Assistant City Manager/ Director of Finance

Attachment A - Resolution Attachment B - Agency Program Fee Comparison Attachment C - Proposed Team Registration Fee Schedule

ATTACHMENT “B”

AGENCY PROGRAM FEE COMPARISON as of August 2020

City of City of Auburn Cameron City of Folsom El Dorado Placerville Placerville ARD Park CSD Hills CSD Proposed Current Men’s $475 Resident $500 Non-Res (8 games plus playoffs to top 4 $440 $481 $469 $500 $440 teams) (7 games Adult 5x5 (7 games plus (7 games plus (10 games) (7 games plus Women’s plus playoffs Basketball playoffs to top playoffs to Top 2 playoffs to $425.00 to top 4 4 teams) top 4 teams) Playoffs top 4 teams) Resident & teams) Non-Resident (7 games plus playoffs to top 4 teams)

$137 $132 Adult 3x3 (7 games plus (7 games Basketball playoffs to top plus playoffs N/A N/A N/A N/A N/A No Officials 4 teams) to top 4 teams) 4x4 $265 Resident $295 Non-Res (8 games) $185 $175 Adult 1 Official (7 games plus (7 games plus Volleyball N/A N/A 6x6 N/A playoffs to top playoffs to No Officials $280 Resident 4 teams) top 4 teams) $310 Non-Res (8 games) 1 Official

$526 $490 Residents $490 $538 (7 games $550 N/A $575 Non- (7 games Adult (7 games plus plus playoffs (10 games) residents plus playoffs Softball playoffs to top to top 4 (7 games plus to top 4 4 teams) teams) playoffs) teams)

ATTACHMENT “C”

City of Placerville Community Services Department

Proposed Team Registration Fee Schedule for Adult Sports Programs to be effective January 1, 2021

CURRENT FEES PROPOSED FEES 5x5 Basketball $469.00 $481.00 3x3 Basketball $132.00 $137.00 4x4 Volleyball $175.00 $185.00 Softball $526.00 $538.00