June 7, 2005

SUBJECT:      Explore Costs and Benefits of Declaring the Second Saturday in August as “Family Day” and Open Recreation Facilities to the Entire Community – Study Issue (05-164)

REPORT IN BRIEF

In January 2005, City Council approved a Study Issue to explore the benefit to the community of declaring the second Saturday in August as “Family Day.” Please refer to Attachment A - Study Issue Paper to Explore the Benefit to the Community of Declaring the Second Saturday in August as “Family Day.” The concept for this issue was brought forward by members of the India Community Center of Sunnyvale as the celebration of Family Day is quite common in their culture. The Study Issue includes consideration of the potential cost impact on the Community Recreation Fund to open various recreation facilities to the community without requiring reservations and/or at no cost to the user. Additionally, Council requested that staff study the extent to which Family Day could be promoted and the cost to do so.

At the Study Issue Workshop on December 16, 2005, Council helped to clarify the scope of the study by limiting it to the:

• Benefits and potential impact (fiscal and other) of waiving reservation and rental fee  requirements for park facilities including picnic areas, park buildings and athletic fields;
• Potential impacts (fiscal and other) of providing free reservations for use of Community Center facilities for community sponsored Family Day activities;
• Feasibility of providing a window of time up to four hours for free access to pools open on that day, and;
• Potential ways to publicize Family Day and the estimated costs to do so.

The purpose of this report is to request Council action on this Study Issue and provide Council with the information required to make an informed decision.

Previously staff was tasked in June 2004 to consider all recreation services in light of the structural imbalance that exists in the Community Recreation Fund (Fund 525).  To that end, in the future staff will bring fiscal strategies to Council to address this imbalance.  These strategies will likely include: elimination of some services and their related operating costs; potential fee increases; and, increased revenue options that will address the negative imbalance of $330,000 to $650,000.

Should City Council approve and implement the Family Day concept as described in the Discussion Section of this report, there will be an added cost to the Community Recreation Fund of approximately $8,000 - $12,000. If these costs are not offset by a transfer from the General Fund, the costs must be absorbed within the Community Recreation Fund. In that event, other recreation programs would need to be either reduced or eliminated.

On May 24, 2005, the Arts Commission conducted a public hearing on this report and recommended Alternative No. 1, that City Council does not implement Family Day activities for calendar year 2005, accepts the concept of Family Day as outlined in the Discussion Section of this report and considers the implementation of Family Day and related costs for calendar year 2006 within the larger budgetary context of the Community Recreation Fund as Council also considers fiscal strategies to address the structural imbalance in that Fund.

On May 25, 2005, the Parks and Recreation Commission conducted a public hearing on this report and recommended Alternative No. 1 as well.

Staff also recommends Alternative No. 1, City Council does not implement Family Day activities for calendar year 2005, accepts the concept of Family Day as outlined in the Discussion Section of this report and considers the implementation of Family Day and related costs for calendar year 2006 within the larger budgetary context of the Community Recreation Fund as Council also considers fiscal strategies to address the structural imbalance in that Fund.

BACKGROUND

This Study Issue was created following the receipt of a letter dated December 15, 2004, from members of the India Community Center in Sunnyvale. In their letter, the India Community Center members provided information regarding their tradition of annually observing a “Family Day” on the second Saturday in August. The “Family Day” celebrations encourage grandparents, parents and grandchildren to come together with the objective of strengthening ties within nuclear families.

City Council requested a Study Issue that would build on the “Family Day” concept presented by members of the India Community Center and promote multi-generational activities by increasing access to City facilities by allowing public use without cost and/or without reservations depending on the specific facility.

Staff was directed to provide information regarding the feasibility of allowing use of park buildings, picnic areas and athletic fields without reservations; the impact of allowing reserved, but free use of meeting rooms at the Community Center; cost for staffing that would be required above standard staffing patterns; potential conflicts with existing reservations and an estimate of the potential revenue loss from allowing free use of recreation facilities. Council requested that this information be brought back to them as a menu of options broken down by park and facility. Additionally, staff was directed to come back with options for the Council to consider potential strategies and costs to publicize the event. 

EXISTING POLICY

Sunnyvale General Plan, Recreation Sub-Element:

Goal A: Manage a comprehensive parks and recreation program which remains responsive to public need and delivers quality customer service.

Policy C.3. Utilize available pricing and promotional tools in order to maximize participation and/or use related programs, facilities and services, without jeopardizing the integrity and infrastructure of related facilities.

Policy C.3.d. Strengthen the use of sound promotional strategies related to programs facilities and services.

Sunnyvale General Plan, Arts Sub-Element:

D.1.a. Enhance the use of entrepreneurial strategies to strengthen the position of the Arts in the community and identify and reach new markets for arts programs and services.

Policy D.3. Utilize available pricing and promotion tools in order to maximize participation and/or use related to arts programs, facilities, and services, without jeopardizing the integrity and infrastructure of related facilities.

Policy D.3.b. Continue to use sound promotional strategies related to arts programs, facilities, and services.

From the Community Participation Sub-Element:

Policy 7.2.B.3. Provide an environment which fosters a sense of positive identity on the part of citizens and staff.

Policy 7.2.B.3.a. Sponsor at least one special community-wide event each year.

DISCUSSION

This report considers the potential benefits and costs of declaring the second Saturday in August as “Family Day” on an annual basis. As noted in the Background Section of this report, this Study Issue was predicated on a letter sent to City Council by members of the India Community Center in Sunnyvale. City Council requested the study to build on the “Family Day” concept presented by the members of the India Community Center and to promote multi-generational activities by increasing access to City facilities. This would be accomplished by allowing use of public facilities at no cost and/or without reservation depending on the specific facility. While the origin of the idea for this study came from the India Community Center, it is Council’s intent that there would be a community-wide effort aimed at benefiting all cultures equally. Council requested that the following information be included in this study:

1. The benefits and potential impact of waiving reservation requirements for park facilities including picnic areas, park buildings and athletic fields;
2. Potential impact of providing free reservations for use of Community Center facilities for community sponsored Family Day activities;
3. Feasibility of providing a window of time up to four hours for free access to pools open on that day, and;
4. Potential ways to publicize Family Day and the estimated costs to do so.

General Benefits that May be Derived from a Family Day Celebration

There are potentially a number of general benefits of declaring one day a year as “Family Day” depending on how the concept is implemented.

• “Family Day” celebrations may encourage grand-parents, parents and grand-children to come together and strengthen family ties within nuclear families.
• From a community perspective, there may be some goodwill generated by offering park amenities on a first-come, first-served basis and from being able to use these amenities at no cost.
• Encouraging families and neighborhoods to get together is a community-building activity.
• This is an opportunity to try something new and to help build an increased sense of “community” within Sunnyvale.
• By not requiring reservations, these amenities may also be used by lower income families who might otherwise be unable to afford the rental fees for reserved picnic areas, buildings or sports fields during the summer. These families would have the opportunity to use prime picnic areas on a first-come, first-served basis.
• Promoting “Family Day” in Sunnyvale may encourage family members to come together when they might otherwise have not done so.

General Impacts from Declaring a Family Day Celebration in Sunnyvale

• Potentially the cost of supporting Family Day activities and the loss of revenue would increase the subsidy to the Community Recreation Fund or would require the reduction or elimination of other subsidized recreation programs, such as those for children, teens, seniors and the disabled, in order to offset losses in the Community Recreation Fund.
• If the concept of Family Day is approved and implemented it would establish a precedent. Other groups may come forward to request waivers of rental fees and reservation requirements in order to celebrate holidays such as Christmas, Kwanzaa, Chanukah, Mothers’ Day, Fathers’ Day, Presidents’ Day or Veterans’ Day. A case may be made by any member of the community that any such “day” may be used as an avenue to promote the building of family relationships and community.
• There is some question as to what extent declaring a “Family Day” and opening public facilities for free or non-reserved use will encourage cross-cultural interactions. 
• Evaluation of how well a “Family Day” increases the public’s sense of community would be subjective at best.
• It is possible that some free facilities may be reserved for uses that have no relationship to increasing cross-cultural interaction, family relationships or improvement in feeling a part of the community.
• There may be a negative impact on customer service for those community members who are planning activities such as a wedding or anniversary celebration and “need” a reservation for the same day as Family Day but are unable to do so as facilities are being made available for Family Day activities.

1.     Potential benefits and impact of waiving reservation requirements for park facilities

Benefits

Potential benefits to be derived from waiving rental fees for park facilities vary between picnic areas, park buildings and athletic fields as does the specific impact from waiving this requirement.

Impact

It is difficult to determine what the exact impact will be of waiving reservations and associated use fees for park facilities. During the majority of the year, picnic areas are available on a first-come, first-served basis at no cost to users; however, during summer months a reservation system is in place because of the high demand for the picnic areas. It is unfortunate, but true, that there are, at times, altercations between users over exclusive right to a specific picnic area and having a permit to refer to helps Parks Division and Public Safety staff sort things out during the peak spring and summer months. Residents will also potentially lose the opportunity to plan (and reserve facilities in advance) for family activities such as birthday parties or anniversary celebrations where the date of the family get-together is important. (Please refer to Attachment B - Picnic Area Rental Policies.)

People renting park buildings are required to pay a $350 damage deposit to cover their event. This is to protect City property from the cost of any damage caused by the renters and to protect the City from the actions of any negligence on the part of the people using these facilities. (Please refer to Attachment C - Park Building Use Policies.)

If Council were to adopt a policy of unreserved, free use of the park buildings and did not require damage deposits or provide staff to supervise the facilities, then there would be little or no opportunity to protect City property from potential damage or a way to recover the costs for additional maintenance or repair after damage occurred. Additionally, there would be no way to communicate park and park building rules to the public. The City’s Risk and Insurance manager has advised that indoor facility use, such as the park buildings, should require:

·         Identification of a responsible party who would be advised and agree to all facility use policies.

·         Payment of a security deposit, which would be refunded if the facility is left clean and undamaged.

If the park buildings are opened for unreserved, free use, buildings would still need to be unlocked and supervised by City staff. This would result in additional staff cost that would vary depending on the number of hours that Council wanted the buildings to be open for unreserved use. If each building were open for seven hours, with an additional hour for clean-up, the cost would be approximately $125 per site or $1,500 for all twelve park buildings to be opened for the day. It would be difficult for the Recreation Division to oversee the twelve park buildings all day as current staff levels are sufficient only to support rentals at just a few park buildings a day based on past rental patterns. At best, several staff members could be scheduled to stop by each park building at various times throughout the day.

Prior to putting a hold on all park facilities, reservations from two sports groups were approved for August 13, 2005: Sunnyvale Pop Warner Football has reserved the fields at Fair Oaks Park from 8:00 a.m. to noon and Sunnyvale Alliance Soccer has reserved the four fields at Cupertino Middle School from 9:00 a.m. to 4:00 p.m. Both organizations have Outside Group Relationship Agreements with the Parks and Recreation Department and are required to pay $1 per hour for each field that is used. If these permits are cancelled, there will be a loss of revenue of $32 and quite a few disappointed sports participants.

Additionally, there are existing reservations on August 13, 2005, for the following park buildings:

During Council discussion regarding this Study Issue on December 16, 2004, a request was made to provide Council with a menu of options to choose from and the potential loss of revenue for each location. Please refer to Attachment D – Park Facility Revenue Analysis, for an overview of revenue generated from park building, picnic area and field rentals on the second Saturdays in August in 2003 and 2004. In summary, the chart shows that $4,892 was generated in revenue from park building rentals, picnic area rentals, athletic field reservations, entry fees and activity fees for Baylands Park on the second Saturday in August 2003; $5,353 was generated on the second Saturday in August 2004. If Baylands Park is removed from the calculation revenue from park use drops to $2,010 in 2003 and $2,685 in 2004.

Over the past year, considerable effort has been placed on marketing the availability of recreation facilities for public rentals. Staff anticipates a slightly higher loss of revenue than the historical data alone would indicate. (Please refer to Attachment E – Facility Rental Rate Schedule - Effective July 1, 2004.)

City Council may recall that at up until two years ago, the City had an “ambassador” program designed to provide occasional observations throughout each summer day to ensure that there were no major disputes between park users and that park amenities were being used properly. This program significantly reduced the number of conflicts between park users and reduced the impact on Parks staff and Public Safety. Since the “ambassador” program was eliminated, wooden posts have been installed at every reservable picnic site, so that renters may post their reservations. This has helped reduce conflicts; however, if there are no reservations it is possible disputes may occur.

Should City Council approve unreserved use of picnic areas and athletic fields, it may be prudent to schedule additional staff to be on duty on Family Day to ensure that there are no major disputes among park users and that park amenities are being used properly. The cost to provide this staffing would be approximately $525. If Baylands Park is also included, there will also be a need for additional staff at Baylands Park at a cost of approximately $96.

2.     Potential impact of providing free reservations for use of community center facilities for community sponsored “Family Day” activities

Based on Council’s direction to staff that high revenue generating facilities such as the golf courses or the large rooms at the Community Center be excluded from this study, staff has focused on the general meeting rooms in the Recreation Building at the Community Center for possible Family Day activities. Although these rooms are used for recreation classes and other City sponsored activities, there was only one rental for $150 on the second Saturday in August 2003 and there were no rentals on the second Saturday in August 2004. The meeting rooms in the Recreation Building have been set aside for potential Family Day activities and staff does not anticipate that this will result in any significant loss of revenue. However, depending on the number and type of “Family Day” activities held in these rooms, there would be a cost to have staff on site this day. The cost would be approximately $400 to provide supervision for the Recreation Building for the day. Staff would be responsible for unlocking and locking rooms, set-up of chairs and tables, general oversight of activities, monitoring restrooms, answering questions and otherwise assisting the public.

People renting rooms at the Community Center are required to post a minimum damage deposit of $350 and pay any rental fees that are required. Additionally, those renters planning to serve alcohol at their events must provide proof of liability insurance. This is to protect City property from damage by outside users and to protect the City from the actions and negligence on the part of people using the facilities. (Please refer to Attachment F – Community Center Use Policies.)

If the City does not require facility users to certify that they have liability coverage for their events, the City could be called upon to defend itself for actions and negligence on the part of the people using these facilities. For example, someone may slip on spilled food or drink at a Family Day activity, or a vehicle may be damaged in the Community Center parking lot by one of the facility users. If the injured party decides to sue for damages and includes the City in their claim, the lack of liability coverage on the part of the facility user would require the City to defend itself rather than have the facility user’s insurance provider defend the user and the City.

Although this was not requested specifically in the study, Council may also want to consider the possibility of providing free access to the open gym program in the Indoor Sports Center at the Community Center from 3:30-7:30 p.m. on August 13, 2005, and promoting this time as an opportunity for families to use the gym together. There would be a cost of $135 to staff the program and a loss of approximately $250 from waived participant fees based on data from previous years.

3.     Feasibility of providing a window of time up to four hours for free access to pools open on that day

There will be two pools open on Saturday, August 13, 2005, not including the Fremont High School pool that is operated by the California Sports Center under contract with the City. Washington Pool is scheduled to have swim lessons from 9:30 a.m. to 12:30 p.m. and open recreation swim 1:30-4:00 p.m. The same schedule will be in place at Lakewood School on that day.

An additional half hour may easily be added to recreation swim in the afternoon to provide three hours of open recreation swim at Washington and Lakewood pools; however, the lifeguards and aquatics staff would be required to work overtime in order to accommodate any further increase in the number of hours they work that day. Additionally, the fourth hour would need to be added at the end of the day as the aquatics staff will need a lunch break regardless of the number of hours they work in the afternoon.

The total increase in staffing costs would be approximately $70 to staff both pools for an additional 30 minutes of recreation swim. To keep the pools open an additional hour (1:30-5:30 p.m.) the cost in overtime pay would be another $230 dollars. Staff projects a loss of approximately $250 in revenue if participant fees are waived. This estimate is based on data from previous years when recreation swim has been open for 2 ½ hours a day during the summer.

The pools at both Columbia and Sunnyvale Middle Schools are currently scheduled to close down on Friday, August 12, 2005. Open recreation swim could be provided at both of these pools by keeping them open one additional day.

If Columbia and Sunnyvale Middle School pools are kept open the extra day, open recreation swim could be offered at these sites as well from 1:30-4:30 p.m. at a cost of approximately $600, or from 1:30-5:30 p.m. for approximately $800. This estimate is based on a higher hourly rate than staff costs for Washington and Lakewood pool because pool staff at Columbia and Sunnyvale would go in to an overtime situation if an additional day is added to their work week. There is no loss of planned revenue at these two pools as the summer schedule planned for the pools to be closed by August 13, 2005.

The costs reflected in this report represent staff’s best estimate on the number of staff needed at each pool to ensure adequate supervision and the safety of participants. Should the number of people wanting to attend open recreation swim at any of these sites, exceed the maximum number of people that can safely be supervised, they will be held at the gate until space opens up as people leave the pool area.

4.     Potential ways to publicize Family Day and the estimated costs to do so

Many of the avenues that are used to promote recreation activities and special events in the City require several months lead time. Because Council will be taking action on this item approximately eight weeks prior to the date selected for Family Day in 2005, what staff would do this year would be slightly different than what could be done in the future with more lead time.

2005 Promotional Strategies

Banner: A standard 3’ x 40’ banner may be fabricated and installed on the banner frame at the intersection of Wolfe & El Camino by mid-July. The estimated cost is $1,270, which includes fabrication and installation costs. While this banner could be reused, staff estimates that it would need to be replaced every two to three years because of wear and tear on the canvas.

Flyers: 1,500, 8.5” x 11” one color flyers may be produced and distributed to all contact points in the City for an estimated cost of $150. Primary distribution points include the Community Center, Library, City Hall and posted at park buildings.

KSUN Slide: A slide or two could be produced within two weeks of Council action on this item and put into rotation on KSUN. There is no cost to produce a simple KSUN slide.

News Releases and PSAs: Recreation staff would work with the Communications Division staff to produce press releases for distribution to the local press. This is a routine service provided by the Communications Division and any staff or distribution costs would be absorbed into their operating budget.

City Web Page: The news releases can be linked to the City’s home Web page and an ad placed in the Recreation Division section of the City of Sunnyvale Web site. The recreation Web page could include all of the pertinent information for Family Day and the URL would be included on all advertising. Again, there is no cost for this action. Additionally, Family Day could be posted on the City’s special event calendar.

Neighborhood Associations: Recreation staff would work with the Neighborhood and Community Resources Manager to notify Neighborhood Associations about Family Day via email, and encourage the associations to host a Family Day event in a local park building. Additionally, a brief article could be prepared and distributed to those neighborhood associations that produce newsletters. Both of these activities could be completed at no cost to the City.

Information about Family Day would be mailed to the members of the “Friends of Parks and Recreation” mailing list, which currently has 165 names on it. The cost for this mailing would be approximately $100 including preparation of the notice, printing and mailing.

The total cost to promote Family Day in 2005 as described is $1,520.

Future Promotional Strategies

Promotional activities for future Family Day activities would likely follow the same promotional strategies as are used for Family Day 2005 with the following additions:

Quarterly Report and Harbinger Newsletter: Articles explaining the purpose and opportunity for Family Day activities would be published in the summer (July 1) of the Quarterly Report and the July - August Harbinger. These articles would not increase existing costs for producing the Quarterly Report or Harbinger Newsletter.

Activity Guide Ads: A ¼ to ½ page sized ad could be placed in both the spring Youth and Adult Recreation Activity Guide and spring Senior Activity Guide. These ads would not increase existing costs for producing either of the Activity Guides.

Other Community Newsletters: Recreation staff and Community Relations staff would establish contact with citywide cultural groups to disseminate information about Family Day and encourage participation in promoting this celebration of family. Presumably there would be no cost other than staff time to identify and contact local cultural groups to share information about Family Day.

Newsprint Advertising: An ad could be purchased in The Sunnyvale Sun. Approximate cost for a ¼ page ad is $732.

The total cost to promote Family Day in future years would be approximately $2,252. Banners may be reused depending on the type of information that is included on them and how many changes need to be made from year to year. On average, recreation banners generally last approximately two to three years before new ones must be fabricated.

Inter-Department Coordination

This report was prepared in collaboration with staff in the Communications Division.

FISCAL IMPACT

1.     The benefits and potential impact of waiving reservation requirements for park facilities including picnic areas, park buildings and athletic fields:

Picnic Areas

Additional staffing for supervision of these sites would not be required, but is recommended as the usual reservations practices tend to limit the conflicts that tend to occur as two or more groups intend to use one picnic site. If all sites were offered free and without reservation, three Recreation Division Facility Attendants could be assigned that day to visit the various parks to ensure that things are going smoothly and to identify any potential problems quickly. The cost for the three Facility Attendants would be approximately $550.

The Parks Division generally has seasonal parks staff assigned to visit and clean parks from 6:00 a.m.-2:30 p.m. during the summer months. These staff members would provide park clean-up services before non-reserved, free use of picnic areas. This staff would be on-duty as a regular course of business, there would be no additional staff costs, with the exception of Baylands Park. Because of the large number and size of the picnic areas, an additional seasonal worker would be scheduled for Family Day at a cost of approximately $96. Any activities requiring additional staffing after 2:30 p.m. would require additional staff at similar costs.

Should City Council also decide to waive gate fees ($4.50 per vehicle) and activity fees for jumpers ($25.00 per jumper) at Baylands Park, there would be an approximately $1,700 loss of revenue based on an average of the fees collected in 2004 and 2003. This amount would be partially offset by $180 because a gatekeeper would not need to be on duty that day.

Park Buildings

The fiscal impact of waiving reservation requirements and thus the $350 damage deposit requirement cannot be estimated as the City has not allowed unreserved use of park buildings. There would be no opportunity to protect City property from potential damage or any way to recover the costs for additional maintenance or repair after damage occurred. Additionally, the Recreation Division does not have enough Facility Attendants available to staff every park building even if City Council were to allocate the resources to cover this cost.

As shown in Attachment B (Park Facility Revenue Analysis), historically, park buildings are not rented on a frequent basis on the second Saturday in August. It is difficult to project potential loss of revenue as the buildings are rented by the hour. Rentals run from two hours to eight hours depending on the activity. Based on historical data, staff estimates a loss of $250 - $800 in rental revenue.

Field Use

As shown in Attachment B (Park Facility Revenue Analysis), historically, City park and school fields are not rented on a frequent basis on the second Saturday in August. It is difficult to project potential loss of revenue as the fields are rented by the hour and rental rates vary depending on the type of group reserving the fields. Rentals generally run from four to eight hours depending on the activity. Based on historical data, staff estimates a loss of $200 - $300 in rental revenue.

Maximum Potential Fiscal Impact

The following chart depicts the maximum amount of revenue that may be lost if all picnic areas, athletic fields and park buildings that are generally reserved and paid for during the summer months are opened for free use on Family Day. The projections for picnic areas are based on the maximum occupancy of each permitted picnic area multiplied by $1 per person. The projections for athletic fields are based on the $25 per hour rate with a maximum fee of $175 per day. Projections for the park buildings are based on an hourly rate of $60 per hour multiplied by fifteen hours a day, which is the period of time the parks are open to the public.