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

August 21, 2019, Recreation and Parks Commission Prepared by: Matt Lishman, Recreation Superintendent

Subject: Support staff’s recommendation to increase adult sports team registration fees effective January 1, 2020: 1.) Increase Adult 5x5 Basketball team registration fee $18.00 from $451.00 to $469.00 per team; and 2.) Increase Adult 3x3 Basketball team registration fee $5.00 from $127.00 to $132.00 per team; and 3.) Increase Adult 4x4 Volleyball team registration fee $10.00 from $165.00 to $175.00 per team; and 4.) Increase Adult Softball team registration fee $17.00 from $509.00 to $526.00 per team.

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, 2019 California’s minimum wage increased $1.00 to $12.00 per hour and will increase again on January 1, 2020 by $1.00 to $13.00 per hour. In addition to the minimum wage increase on January 1, 2020 the official’s fees for 5x5 Basketball will be increasing by $1.00 to $26.00 per official and official’s fees for softball will be increasing by $2.00 to $30 per official. These increases will have a financial impact on the City’s Adult Sports leagues.

Discussion: Staff conducted a fee comparison survey with similar agencies (Attachment A) and analyzed current user data in order to attempt to establish new adult sports team registration fees that would generate additional revenue without discouraging participation. 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 20 teams will participate during the 2019-20 fiscal year.

Page 2 The following table shows the anticipated cost increase in the 2019-20 fiscal year:

Adult 5x5 Basketball 2018-19 Fiscal Year 2019-20 Fiscal Year Total Increase Part-Time Personnel Costs $2,757.00 $2,987.00 $230.00 Officials Costs $3,200.00 $3,328.00 $128.00 Total Costs $5,957.00 $6,315.00 $358.00

This increase will have a financial impact on the Recreation Division’s annual operating budget for the 2019-20 fiscal year. In order to offset the additional expenditures in the Adult 5x5 Basketball League, staff is recommending a team registration fee increase of $18.00, from $451.00 to $469.00 per team, effective January 1, 2020. 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

20 $18.00 $360.00

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 2019-20 fiscal year.

The following table shows the anticipated cost increase in the 2019-20 fiscal year:

Adult 3x3 Basketball 2018-19 Fiscal Year 2019-20 Fiscal Year Total Increase Part-Time Personnel Costs $2,308.00 $2,501.00 $193.00

This increase will have a financial impact on the Recreation Division’s annual operating budget for the 2019-20 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 $127.00 to $132.00 per team, effective January 1, 2020. Of the agencies we surveyed we are the only one that offers 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 $5.00 $200.00

Page 3 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 2019-20 fiscal year.

The following table shows the anticipated cost increase in the 2019-20 fiscal year:

Adult 4x4 Volleyball 2018-19 Fiscal Year 2019-20 Fiscal Year Total Increase Part-Time Personnel Costs $2,518.00 $2,728.00 $210.00

This increase will have a financial impact on the Recreation Division’s annual operating budget for the 2019-20 fiscal year. In order to offset the additional expenditures in the Adult Volleyball League, staff is recommending a team registration fee increase of $10.00, from $165.00 to $175.00 per team, effective January 1, 2020. 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 $10.00 $210.00

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 2019-20 fiscal year.

The following table shows the anticipated cost increase in the 2019-20 fiscal year:

Adult Softball 2018-19 Fiscal Year 2019-20 Fiscal Year Total Increase Part-Time Personnel Costs $17,431 $18,883 $1,452 Officials Costs $22,288 $23,880 $1,592 Total Costs $39,719 $42,763 $3,044

This increase will have a financial impact on the Recreation Division’s annual operating budget for the 2019-20 fiscal year. In order to offset the additional expenditures in the Adult Softball League, staff is recommending a team registration fee increase of $17.00, from $509.00 to $526.00 per team, effective January 1, 2020. This will put league fees in-line with similar surrounding agencies.

Page 4 The following table shows the total projected revenue increase based on the proposed registration fee:

Adult Softball # of Teams Proposed Increase Additional Revenue 179 $17.00 $3,043.00

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

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, 2020.

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 $358.00 $360.00 $2.00 Adult 3x3 Basketball $193.00 $200.00 $7.00 Adult 4x4 Volleyball $210.00 $210.00 $0.00 Adult Softball $3,044.00 $3,043.00 -$1.00 Total $3,805.00 $3,813.00 $8.00

Budget Impact: These increases will impact the budget for the 2019-20 fiscal year. These increases were accounted for during the 2019-20 budget process so there is no need for any fund transfers. The proposed team registration fee schedule is located in Attachment B. With the proposed team registration fees in place, the Adult Sports Programs will 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: Support staff’s recommendation to increase adult sports team registration fees effective January 1, 2020: 1.) Increase Adult 5x5 Basketball team registration fee $18.00 from $451.00 to $469.00 per team; and 2.) Increase Adult 3x3 Basketball team registration fee $5.00 from $127.00 to $132.00 per team; and 3.) Increase Adult 4x4 Volleyball team registration fee $10.00 from $165.00 to $175.00 per team; and 4.) Increase Adult Softball team registration fee $17.00 from $509.00 to $526.00 per team.

Attachment A—Agency Program Fee Comparison Attachment B—Proposed Team Registration Fee Schedule Page 5

ATTACHMENT A

AGENCY PROGRAM FEE COMPARISON as of August 2019

City of City of Auburn Cameron City of Folsom El Dorado Placerville Placerville ARD Park CSD Hills CSD Proposed Current $475 Resident $435 $469 $451 $500 $440 $500 Non-Res (7 games Adult 5x5 (7 games plus (7 games plus (10 games) (7 games plus (8 games plus plus playoffs Basketball playoffs to top playoffs to Top 2 playoffs to playoffs to top 4 to top 4 4 teams) top 4 teams) Playoffs top 4 teams) teams) teams) $132 $127 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) $175 $165 $235 Resident Adult (7 games plus (7 games plus $265 Non-Res Volleyball N/A N/A N/A playoffs to top playoffs to (8 games) No Officials 4 teams) top 4 teams) 1 Official

$509 $475 $490 Residents $490 $526 (7 games $550 7 games plus $575 Non- (7 games Adult (7 games plus plus playoffs (10 games) playoffs residents plus playoffs Softball playoffs to top to top 4 (7 games plus to top 4 4 teams) teams) playoffs) teams)

Page 6

ATTACHMENT B

City of Placerville Recreation and Parks Department

Proposed Team Registration Fee Schedule for Adult Sports Programs to be effective January 1, 2020

CURRENT FEES PROPOSED FEES 5x5 Basketball $451.00 $469.00 3x3 Basketball $127.00 $132.00 4x4 Volleyball $165.00 $175.00 Softball $509.00 $526.00