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Nancy Steward, Superintendent of Recreation, presented the staff report.
Councilmember Spitaleri inquired about the escalation in use of fee waivers and asked if any particular age group had shown an increase in the use of fee waivers. Superintendent Steward stated that reasons for the escalation are not clear; however, the changing economy, shifting demographics in the community, and how the program is marketed could account for some of the reasons. The largest increase in use has been with the senior population (primarily for the senior lunch program), but the youth area has seen the largest dollar increases.
Mayor Swegles asked what the current balance is for the fee waiver program. Superintendent Steward stated the current budget is $190,000 (which includes a $76,000 budget modification approved by Council last year).
Mayor Swegles opened the Public Hearing at 7:26 p.m.
Richard Oliver, Parks and Recreation Commission, stated the Commission recommended
(4 to 1) that Council direct staff to utilize 80% of the allocated Recreation Fee Waiver budget to serve youth 17 years of age and younger; 10% to serve adults age 18 to 49; 10% to serve senior adults 50 and older, and that Recreation Fee Waivers shall be used only for City provided programs. Additionally, the Commission unanimously agreed with the approval of Alternatives 8, 11, 14. 16 and 18 in accordance with staff recommendation.
Charlie Fenton, Arts Commission, commended staff for a well written report. He stated the Arts Commission voted (3-2) in favor of Council directing staff to utilize 80% of the allocated Recreation Fee Waiver budget to serve youth 17 years of age and younger; 10% to serve adults age 18 to 49; 10% to serve senior adults 50 and older, and that Recreation Fee Waivers shall be used only for City provided programs. Additionally, the Commission unanimously agreed with the approval of Alternatives 8, 11, 14. 16 and 18 in accordance with staff recommendation.
Councilmember Spitaleri asked why 10% was recommended for the senior population when their use of the fee wavier has increased compared to a decrease in use of waivers by youth. Mr. Fenton stated the initial purpose of the waiver program was to serve youth groups, and the Commission took into consideration that Seniors have the Senior Center with reduced fees available to them.
Gary Linford, President of the Sunnyvale Alliance Soccer Club, stated his concerns about the removal of the Fee Waiver Program for outside youth sports groups.
Councilmember Chu verified that a fee wavier may be used for more than one program, but the maximum fee waiver is $180 per participant.
Councilmember Moylan explained that Sunnyvale is the only known local jurisdiction to provide a cash subsidy from City funds to support outside groups. He stated that similar outside groups in other cities exist without taxpayer subsidies; therefore; he asked Mr. Linford what is different about his group that would create a hardship if they were not able receive subsidized funding. Mr. Linford stated that his group had to raise funds to lease a field and renovate it, compared to groups that did not have similar expenses.
Councilmember Moylan stated any program not run by the City, sets its own fees. He stated if the City commits to subsidies out of the General Fund to pay fees set by a group that is not part of the City, then the City has lost control over a piece of the budget and has no way to contain that cost. Mr. Linford explained that his organization attempts to control their costs to keep their fees as reasonable as possible for their participants and that they offer an organized program for the youth of this area.
Mayor Swegles asked Mr. Linford what percentage of Sunnyvale youth participate in his program. Mr. Linford stated it was approximately 80% participation from Sunnyvale. Mayor Swegles stated Sunnyvale does have a soccer complex at Twin Creeks and asked Mr. Linford if he had investigated their fees. Mr. Linford stated he had not done so.
Susan Lundberg, Treasurer of Sunnyvale Alliance Soccer Club, stated she is against the City of Sunnyvale removing fee waivers for outside groups. She stated the number of participants that utilize fee waivers is not currently a high percentage, but the club wants to increase the use of the waivers. Their effort is to get children off the streets and onto the soccer field.
Vice Mayor Lee asked why the number of fee waivers has dropped recently. Ms. Lundberg stated she attributed it to publicity and communication issues.
Vice Mayor Lee inquired about the dollar amount of the individual fee waivers that the City provides to Sunnyvale Soccer Club. Ms. Lundberg explained that they accept fee waivers, enroll the child and then seek reimbursement from the City. She stated they had accepted $2,500 in fee waivers, and that they have not received reimbursement from the City for a number of reasons. She stated they will have to cover those costs; therefore, reducing their ability to maintain their field and provide shoes and uniforms.
Councilmember Chu verified that $180 is the maximum amount that is allocated per individual. Ms. Lundberg stated the registration fees for their recreation league is $95 and $135 for the competitive league; however, that does not include the uniform and additional costs that can range from $300 to $1,000.
Councilmember Chu asked if other leagues in Sunnyvale are comparable in size. Ms. Lundberg stated she was not aware of the size of other leagues. Ms. Lundberg stated that her organization continues to apply for grants, but they are often turned down due to the income levels of this area.
Councilmember Spitaleri verified that of the fifty-six fee waivers, thirty-six were for the recreation league and twenty were for the competition league.
Nancy Tivol, Executive Director of Sunnyvale Community Services, stated City funds should first fund City programs. She requested that Council implement the proposed changes as of next fiscal year (2007-2008) for a smoother transition.
No one else wished to speak and Mayor Swegles closed the Public Hearing at 8:01 p.m.
Vice Mayor Lee asked what steps would need to happen for a smooth transition to the new conditions. Superintendent Steward stated that depending on Council action, staff would need time to educate and inform the groups and the community. She stated the best timing would be at the beginning of a fiscal year, but staff could work within a shorter time frame. She stated they would need to work with people who have currently applied and received their fee waivers, as opposed to those who had not applied.
Councilmember Chu asked how many seniors and adults had applied for the fee waiver this year. Superintendent Steward stated she did not have those figures available but once Council enacted the $1 co-pay for senior lunches, the use of the fee waiver decreased.
Councilmember Spitaleri asked if surrounding cities have programs to help children who can not afford to play city-organized sports. Superintendent Steward stated the cities adjacent to Sunnyvale all have a fee waiver or scholarship program; however, they are funded at a much lower level, and in most cases the funding comes from outside of the City (mostly local non-profits who give money to their cities for scholarships).
Vice Mayor Lee asked what funds are currently available funds in the Set-Aside fund. Amy Chan, City Manager, stated $400,000 was available.
Mayor Swegles stated it was his understanding that if the City was not providing a program, and an outside agency provided it, then it was considered to be a City program. Jenny Shain, Casual Manager, explained that situation is considered to be co-sponsorship and the City will offer discounted fees to these groups on a case by case basis.
Councilmember Chu verified that when the City contracts with individuals/organizations to provide City-sponsored programs, fee waivers are provided for those programs. The City sets its own fees and controls the costs of those programs.
Councilmember Spitaleri asked how many groups would be affected by the removal of the fee waiver to outside groups. Superintendent Steward stated that three outside groups have applied for reimbursement of fee waivers this fiscal year, but the number of outside groups varies from year to year.
Mayor Swegles verified that the City should not look at the possibility of taking over the soccer and baseball organizations.
MOTION: Councilmember Moylan moved and Councilmember Spitaleri seconded to approve staff recommendation Alternatives Nos.: 1, 6, 8, 11, 14, 16 and 18:
1. Council directs staff to modify the eligibility criteria so that the City’s Recreation Fee Waiver Program serves only youth 17 years of age and younger;
6. Council directs staff to authorize use of Recreation Fee Waivers for City-provided recreation programs only. Notify all youth sports organizations with special use agreements with the City that fee waivers will no longer be accepted for programs that are not directly provided by the City;
8. Council directs staff to utilize Food Bank Direct Service Eligibility Guidelines (185% of Poverty) to establish eligibility for Recreation Fee Waiver Program;
11. Council directs staff to utilize “bundle” of services approach to establish annual maximum per person amount of recreational fees waived, equivalent to four representative activities a year or one camp, amount to be established and reviewed administratively;
14. Council requires no form of co-payment for any services provided by the Recreation Fee Waiver Program;
16. Council directs staff to manage the Fee Waiver Program budget by encumbering the maximum per eligible person amount at time person qualifies; stop qualifying new participants when budgeted amount is encumbered; roll unspent funds into Community Recreation Fund balance; and carry over to the following year;
18. Council directs staff to continue contracting with Sunnyvale Community Services for administration of the Recreation Fee Waiver Program. At such time as the City is in a
position to assume partial or full responsibility for administering the program, negotiate with Sunnyvale Community Services to reduce or eliminate contract amount:
with the additional provision - the new policies would be effective as of July 1, 2007 (2007/2008 Fiscal Year).
Councilmember Moylan stated he originally did not agree with eliminating the co-pay for senior lunches, but after talking with staff about the amount of administration time that is involved in collecting this fee, he agreed the fee should not be charged.
Mayor Swegles verified that the Parks and Recreation and Arts Commissions did not specifically call out Alternative No. 6, but they included it in their revised recommendation along with the waiver fee given to different age groups by certain percentages.
Councilmember Chu offered a friendly amendment to include a transition plan for the remainder of Fiscal Year 2006/2007 allowing the three outside groups (currently utilizing the fee waiver) to be eligible for fee waivers until the end of the fiscal year. Friendly amendment accepted.
Manager Shain verified that the current practice of applying for fee waivers for all age groups would remain the same until the new fiscal year and the individual limit per waiver of $180 will also remain in place through the remainder of the year. Superintendent Steward stated there will be enough funds to carry the program through the remainder of the fiscal year; however, should demand increase this could change.
Mayor Swegles asked if the City had the funds to reimburse Sunnyvale Soccer Club for their unfunded fee waivers and Superintendent Steward stated the club did not supply the required documentation by the Fiscal Year 2005/2006 deadline; therefore, the club will not be reimbursed. She is not aware of any fee waivers submitted by this group for this fiscal year.
Councilmember Spitaleri verified that Sunnyvale Soccer Club did receive advanced notification that they would need to supply documentation of Sunnyvale residency with each fee waiver they submitted to the City in order to receive reimbursement.
VOTE: 5-0 (Councilmembers Howe and Hamilton absent) |