TITLE
Recommendation to authorize City Manager to amend Permit No. 31902 with Long Beach Swim Club, a California nonprofit organization, for the use of Belmont Plaza Pool, by the approval of a permit fee reduction from $20 per hour to $15 per hour, for a term of one year, retroactive from September 1, 2012 through August 31, 2013. (District 3)
DISCUSSION
Since the 1960s, the Long Beach Swim Club (Club), a competitive swim training club for youth, has been operating in Long Beach. The Club has a long tradition of producing great swimmers and many of its members have been recipients of college scholarships. Monthly fees charged by the Club range from $50 to $105, depending on the swimmer's level, and the fees charged to Club members are used to hire coaches and purchase swimming equipment. The Club provides scholarships for disadvantaged youth who cannot afford to pay the fees.
On October 6,2009, the City Council approved Permit No. 31902 (Permit) with the Club for their use of the Belmont Plaza indoor and outdoor pools for three years, with one, two-year renewal option. During the first year of the Permit, the practice fee was set at $10; during the second year of the Permit, the practice fee was increased to $12; and for the third Permit year, the practice fee was increased to $15. Before the first term of the Permit expired on August 31, 2012, a first amendment was prepared to extend the Permit term through August 31, 2014, which included a scheduled fee increase to $20 for the fourth year of the Permit. When the renewal option was discussed, the Club requested that the increase in fees be waived for the fourth year. While the Department of Parks, Recreation and Marine was gathering data from the Club to justify the fee reduction, the City of Long Beach permanently closed the indoor pool.
The Club has asked that their fee be retroactively reduced from $20 to $15 per hour for the fourth year of the Permit, effective September 1, 2012 through August 31, 2013. The difficult economy, the closure of the indoor pool, and the loss of Club revenue from cancelled swim meets at the indoor pool resulted in a drop of the Club's membership from 80 to 50 youth. In addition, during this period, approximately 20 percent of the youth were on a Club scholarship. All of these factors made it extremely difficult for the Club to pay the $20 hourly fee, so during the fourth year of the Permit, the Club paid the $15 rate in anticipation of formally requesting a reduction. Now that the temporary outdoor pool is open, the Club has been able to recruit new members, but the outstanding difference, if not waived, would still be a burden on the Club. With a continued increase in new members, the Club does not need financial assistance in FY14. In addition, a new schedule of fees and charges was approved by the City Council for FY14 that will cover all activities in the outdoor pools. As a result, the Club will no longer need a special permit to operate in the pools.
This matter was reviewed by Deputy City Attorney Gary J. Anderson on March 10, 2014, and by Budget Management Officer Victoria Bell on March 7, 2014.
TIMING CONSIDERATIONS
City Council action is requested on April 15,2014, in order to waive Long Beach Swim Club's outstanding balance, which will allow the Club to continue their recovery from the recent recession and continue to increase their membership.
FISCAL IMPACT
A fee reduction from the previously agreed amount of $20 per hour to $15 per hour for the retroactive period from September 1, 2012 through August 31, 2013, would result in not collecting the outstanding balance of $3,666, which would have been deposited in the Tidelands Operations Fund (TF 401) in the Parks, Recreation and Marine Department (PR). There is no impact to jobs associated with the recommended action.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
GEORGE CHAPJIAN
DIRECTOR OF PARKS, RECREATION AND MARINE
APPROVED:
PATRICK H. WEST
CITY MANAGER