Las Vegas Parks Fees Report

7/29/2019 Las Vegas Parks Fees Report

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Update of the Pricing Policy and Revenue Plan

City of Las Vegas Parks, Parks, Recreation & Neighborhood Services

September 2013


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Update of the Pricing Policy and Revenue Plan | DRAFT Report

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Acknowledgements

To Be Determined by the City


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City of Las Vegas Parks, Recreation and Neighborhood Services

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Table of Contents- EXECUTIVE SUMMARY .............................................. 1

1.1 INTRODUCTION ...................................................................................... 11.2 DATA REVIEWED ..................................................................................... 11.3 KEY FINDINGS ........................................................................................ 21.4 KEY REVENUE AND PRICING RECOMMENDATIONS .............................................. 31.5 PRICING POLICY ..................................................................................... 51.6 CONCLUSION ......................................................................................... 9

- ORGANIZATIONAL ASSESSMENT ................................ 10

2.1 STAFF AND STAKEHOLDER INTERVIEWS ........................................................ 102.2 ARE WE MAKING PROGRESS ASSESSMENT ................................................... 17

2.3 RECOMMENDED RE-ORGANIZATION ............................................................. 26

- PRIING PHILOSOPHY ........................................... 28

3.1 PRICING PROCESS .................................................................................. 283.2 CLASSIFICATION OF SERVICES .................................................................... 303.3 PRICING PHILOSOPHY ............................................................................. 323.4 PRICING RECOMMENDATIONS .................................................................... 333.5 MARKET PRICING COMPARISON .................................................................. 343.6 THEMED COMMUNITY CENTERS .................................................................. 43

- FINANCIAL MODELING .......................................... 44

4.1 COST OF SERVICE MODEL ......................................................................... 444.2 REVENUE STRATEGIES ............................................................................. 474.3 FUNDING OPTIONS ................................................................................. 49

- CONCLUSION AND TRANSITION PLAN ......................... 59


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- EXECUTIVE SUMMARY

1.1 INTRODUCTIONPROS Consulting worked with the staff from the City of Las Vegas Parks, Recreation and Neighborhood

Services Department (Department) to develop an update to the Pricing and Revenue Plan. For theDepartment to move forward, it is important that these support services keep pace with the growing

populations needs and wants and the financial sustainability goals for the City. Currently, the City of

Las Vegas is closing in on a population of 600,000, and the Department has a tremendous responsibility

to provide quality parks and open spaces, recreation facilities, programs and neighborhood services for

the community. It goes without saying that the opportunity to offer high quality offerings is dependent

on available resources and the ability to generate newer ones.

It is foreseeable that the economic diversity in the community and the Departments mandate to ensure

equity of service puts additional pressure on pricing policies and cost recovery goals. It is recognized

that fiscal management including, cost of service studies, earned income opportunities and revenue and

pricing policies are some of the key components that will enable the Department to meet its long term

vision and short term financial goals.

A project such as this required the City and the Consulting Team to work as a single team, not one where

the consultant works in a vacuum. Sound data collection, constant client-consultant communication and

wide spread staff input were vital to ensure in-depth understanding and analysis of the situation. The

projects philosophy sought to translate the Departments financial vision into objective revenue goals,

strategies and performance measures that drive superior organizational performance while meeting the

financial structural needs of the city established by the city managers office. Additionally, the ability

to generate a collaborative approach including the elected officials, and other City departments is

essential to ensure buy-in and successful implementation of the recommendations.

This final product should be viewed a living document and decision making tool to support effective and

immediate implementation of recommendations. This includes but is not limited to the following:

Recommended Pricing Philosophy, Financial Cost of Service Modeling for all programs andfacilities managed by the Department, and Revenue Strategies to grow revenue to support

operational and capital costs

Recommended financial policies to the insure financial viability of the City for parks, recreationfacilities, programs and neighborhood services , both short term and long-term

Recommended financial and operational procedures to continue to update and assessment thefinancial status of the Citys programs and service after this project is completed

Tactics to manage short term gaps in revenues and expenditures Methods to ensure staff input and involvement in the process Implementation plan to support a successful transition to a new pricing philosophy and methods

1.2 DATA REVIEWEDAs part of the Revenue Plan and Pricing Study, PROS Consulting reviewed the following information:

Financial Aide Fund Policy Performance Plus Results


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General Fund Budget and Philosophy 2013 Budget and Worksheets Recreation League Surveys Volunteer Program Policy Cash Handling Procedures Organizational Structure Performance Goals and Objectives Audit of Leisure Services and Sports Fields Strategic Business Plan Service Fee Waiver Policy Fitness Aging Equipment Report

This information along with focus group meetings and key stakeholder interviews provided the basis for

many of the recommendations outlined in this report.

1.3 KEY FINDINGS PROS Consulting prepared a pricing and revenue plan for the Department in 2008 prior to the

recession beginning but implementation of the recommendations did not occur because of the

recession including numerous staff layoffs, budget reductions within the Department and

restructuring of city services.

Parks and Recreation Services and Neighborhood Services Departments were combined in 2010which has not resulted in the level of unity expected as both merged departments see little value

in these services combined as their customer service and operating philosophies are highlydifferent which creates a dysfunctional work unit that appears to be not working as expected.

This has resulted in a lot of wasted energy for both departments.

The Department has revenue capacity capability to support their operational budgets and thestructural budget of the city but it will require the city leaders to allow the Department to move

forward on key pricing changes that can support the city managers desired outcomes for the city

without negatively affecting the users of the services.

The Department has a high level of bureaucracy for a system of its size with a lot of oversightdue to miss-trust of the Department employees that appears to be unnecessary.

The Department has a low level of moral and energy due to the fact that staff feel unappreciatedand undervalued even though they are enormously skilled.

The Department has some level of cost of service tracking that is working well but fullaccountability of all costs is not in place to determine the level of cost recovery desired.

Department communication and trust is not at a level it should be to energize the staff tomaximize its revenue capability and efficiency.

Key recommendations from the 2008 Revenue and pricing study were not implemented but arestill desired to include the implementation of an effective cost recovery pricing policy,


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appropriate pricing of services based on pricing criteria of core essential, important and value

added services.

1.4 KEY REVENUE AND PRICING RECOMMENDATIONS1.4.1 ADMINIS TRATION RECOMMENDATIONS

Track cost and user data consistently to make sound pricing decisions. Upgrade data tracking systems to track cost and user data accurately in a timely format. Develop true cost of service information to determine cost recovery goals and track unit costs. Seek City Council approval of an updated pricing policy that establishes cost recovery goals for

all core programs and facilities the Department manages. Allow the City Managers office with

Department staff to establish appropriate user prices for services based on the structural budget

needs of the city.

Inform City Council that prices will be set to achieve cost recovery goals with ranges of pricesbased on prime time and non-prime time and based on classification of services which are public,

merit and private services.

Incorporate automatic pricing escalators for prices each year to cover cost increases for utilities,staffing, supplies and equipment requirements to deliver services.

Hire appropriate staff to meet cost recovery goals established by the City Managers office. Track performance outcomes of all programs and service and report quarterly to the City

Managers office.

Develop a self-funded scholarship program for youth in the city. Create new earned income opportunities through the Business Development office of the

Department to help offset operational costs. Earned income opportunities could include

sponsorships, advertising, increased partnerships, grants, retail sales, concessions, and

development of a Parks and Recreation Foundation.

Implement the recommended organizational structure outlined in this Pricing and Revenue Study. Develop a true Business Development office for the Department that focuses on business plans

for signature facilities and programs, earned income development, foundation development,

grants and cost of service tracking working with field staff.

Eliminate the large amount of bureaucracy within the Parks, Recreation and NeighborhoodServices Department as it applies to reservations and permits to access facilities.

1.4.2 FACIL ITY PRICING RECOMMENDATIONS

Develop true cost of service for each facility managed by the Department. Determine competitor and other public service providers prices based on similar facilities and

services to determine price elasticity in the market before determining prices for exclusive use

of city owned facilities based on prime time and non-prime times.

Set fees for exclusive use of pavilions (merit service) and increase prices by $25 dollars a rentalfrom $50- $100 dollars a rental to $75-$125 rental based on the size of the pavilion rental.


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Increase staff costs for special events from an average of $22-$44 dollars per hour to a flat $55dollars per hour (private service).

Increase rental rates of community center meeting facilities and gym space for exclusive use(private service) from $10-$190 an hour to $30-$250 dollars an hour based on the type of program

being provided in the facility.

Increase pool prices from $1-$2 dollars per hour to $2-$4 dollars per hour (merit service). Increase fee based classes for all users including seniors from an average of $20-$40 dollars to

$30-$50 dollars a class or month depending on the program (merit) service.

Increase SAFEKEY annual registration fee from $10 dollars to $20 dollars (merit service). Increase Daily pass fees from $5-$8 dollars to $7-$10 dollars Increase annual membership rates from $2 to $24-$36 dollars membership (merit service) for

senior centers.

Build in marketing costs into prices for facilities and services to let the community know whatservices are available to them.

Theme Recreation Centers to maximize the productivity of use and broaden the serviceopportunities to a regional level (15 minute drive time).

Make unproductive facility space productive via stronger programming at each site. Consider the development of a future field house for creating sports tourism opportunities as

well as serve the local market in basketball, volleyball, cheerleading, wrestling, soccer,

Lacrosse, baseball, and fitness challenge events. This is similar to the soccer complex developed

by the city.

Update all fitness equipment at the recreation centers and increase monthly pass prices toreflect the new value associated with the new equipment.

1.4.3 OPERATIONAL EFFIC IENCY RECOMME NDATI ONS

Develop specific business plans for signature programs and facilities to maximize their revenuecapability and to manage their cost more effectively.

Update all polices including fee waiver policy, partnership policies, and earned income policies. Go back to a five day work week for staff to deliver better service in the field. Allow all full-time staff to access the data system.

Allow staff to make decisions in the field as it applies to refunds to be more customer focused. Eliminate entitlement groups over a three year period. Teach and train staff on how pricing of services works and how to communicate pricing to users

based on cost and classification of services.

Track partnership equity and cost of service and negotiate yearly partnerships based on theoutcomes and cost desired.

Outsource to private businesses unproductive spaces in facilities.


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Establish a youth sports association to maximize fairness and use of sports facilities in the city. Institutionalize throughout the Department the Strategic Business Plan developed in 2013 and

teach and train staff to the focus and performance indicators outlined in the plan and report out

quarterly the results to the City Managers office.

1.5 PRICING POLICYThe following pricing policy was developed to provide the City Manager and Department a format to seek

City Council Approval for implementing the recommendations in this Pricing Policy and Revenue Plan.

The Policy follows the process for developing and implementing cost recovery goals for the Department

and each core service as well as how to price services for the future.

SUBJECT: CITY OF LAS VEGAS PARKS, RECREATION AND NEIGHBORHOOD SERVICES DEPARTMENT

PRICING POLICY

Approved Date

COUNCIL DISTRICT: City Wide

SUBJECT: ACCEPTANCE OF REPORT ON PRNS PRICING AND REVENUE POLICY

RECOMMENDATION

The City of Las Vegas Department of Parks, Recreation and Neighborhood Services recommends to City

Council (1) review of program cost recovery goals; (2) acceptance of the Pricing and Revenue Policy (3)

Provide Direction to City Staff to return to Council annually for approval of the cost recovery goals and

part of the Fees & Charges portion of the annual operating budget process.

Full consideration of staffs recommendation by the City Council on September 2013.

OUTCOME

The review and acceptance of the Pricing and Revenue Plan and Policy will provide a mechanism for

allocating public funds, creating a financially sustainable approach for recreational services and

facilities, maximizing the use of programs and facilities and ensuring affordable access to programs and

services. Specifically the Policy will:

Establish Parks, Recreation and Neighborhood Services (PRNS) cost recovery goals and guidingprinciples

Expand City Manager authority to set all program fees consistent with the Pricing and RevenuePolicy and needs of the Citys Structural Budget.

Authorize PRNS staff to establish a Self-funded scholarship program to assist in affordability forall residents.


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BACKGROUND

The City of Las Vegas has traditionally offered parks and recreation programs and services at costs well

below market value for many programs and services. Traditionally, City fees have been priced low to

accommodate the percentage of residents who cannot afford to pay market rate. As a result of this, the

City has lost an opportunity to charge market rate to customers who can afford to pay and the generalfund has been forced to subsidize nearly 60% of the PRNS programs and services.

In order to become more financially sustainable and align with the Mayor and City Councils goal to

eliminate the structural budget deficit and provide full funding for parks, pools, community centers and

program services; PRNS initiated a updated pricing and revenue plan in the spring of 2013. In July of

2013 PRNS presented Pricing and Revenue recommendations, goals, objectives and next steps to the City

Council for their review and input.

As directed on March of, 2013 in the City Managers 2013-2014 budget message, PRNS has begun the

development of a financially sustainable pricing and revenue model to preserve existing recreation

programs and services. The Department has taken a pragmatic approach to ensure PRNSs long-term

success. The Pricing and Revenue Plan and Policy and guiding principles provide a framework andmethodology to minimize program and service reductions while maintaining quality parks and recreation

services for our residents.

ANALYSIS

The overall cost recovery rate, the percentage of revenue collected against PRNS operation budget, is

approximately 40%. Many other large urban municipalities of similar size, demographics and

socioeconomic diversity have cost recover rates that range from 40% to 60%. Since fees recover only 40%

of PRNSs costs, the 60% subsidized by the general fund is subject to dramatic fluctua tions depending

upon the economic situation. By becoming financially sustainable through charging appropriate fees,

PRNS can become less dependent upon fluctuations in the general fund and ensure that resources can be

available to maintain and/or enhance programs or services. When low cost recovery rates are coupledwith budget reductions, the options include program elimination, program reduction or a shift in pricing

to allow customers to invest in and then maintain the service.

The City Manager currently has limited authority to set user fees for programs such as leisure classes for

adults, seniors and youth, youth sports leagues, camp fees, SAFEKY and aquatics classes (other than

summer). These programs currently generate 40% of the total department revenue. Building on our

existing strengths, and expanding the City Managers authority to set all PRNS user fees will increase the

Departments ability to respond to market trends and community needs. It will also ensure that the

Department can generate optimal cost recovery by program while continuing to have scholarship

programs available for certain segments of the population.

The Pricing and Revenue Plan and Policy guiding principles provide a framework and methodology toPRNS pricing. The five guiding principles in the policy are as follows:

Identify the Level of Benefit a Customer Receives based on Classification of Services Calculate Cost of Service Based on Direct and Indirect Costs Determine Cost Recovery Goals Desire by Core Service to Support the Structural Budget of the

City

Ensure Affordable Access


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Create Revenue Strategies and Prices to Meet the Outcomes DesiredFurther details on the guiding principles are included below.

1. Identify the level of benefit a customer receives

Before determining the appropriate cost recovery goal for a program, it is first important to determinethe level of benefit that the customers, and the community at large, receive from the program. These

levels of benefits are defined as public, merit or private services and categorize the level of benefit

received by the community and individual in parks and recreation programs as follows:

Public services have the highest level of community benefit and are highly subsidized. Forexample trails and parks are general fee to access for anyone

Merit services include a community/public benefit and an individual/private benefit. Swimminglessons address a health and safety concern and provide a community benefit. There is an

individual benefit by the participant gaining a new skill. Merit programs have a cost sharing model

that includes a subsidy and partial cost to the participant.

Private services have an individual/private benefit with minimal to no community/publicbenefit. For example, adult piano lessons have an individual/private benefit with minimal

benefit to the public. Private services have minimal to no subsidy and costs are paid for by the

participant.

PRNS has begun a rigorous process to determine the direct and indirect costs associated to each program

and service. Cost of service and how we calculateBased upon the level of benefit received and the

cost of service, a cost recovery goal will be determined.

2. Calculate the cost of service

3. Determine cost recovery goals

4. Ensure affordable access

PRNS recognizes that not all Las Vegas residents have the ability to pay the full cost for services. The

Department currently partners with numerous advisory groups, individual donors and grantees to offer

scholarships and reduced program fees to our customers. In addition, the Department will implement a

City Wide Scholarship program to ensure affordable access. Further funding to support the scholarship

program will come from 3% of revenue collected by the Department to create a self-funded scholarship

program.

5. Create Revenue Strategies

Two key strategies are used in pricing and revenue; earned income and diversified pricing methods.

Earned income strategies generate revenue, outside of pricing, to offset operating costs for theDepartment or program. The Department will be implementing a variety of earned income

strategies including, but not limited to; sponsorships, partnerships, grants and foundation

development.

Diversified pricing methods such as; prime/non-prime time rates and weekend/weekday/eveningrates, ensures fairness to the customer and encourages users to move to an option that best

accommodates their schedules and price points and promotes community use of facilities during

off-peak hours, which generates additional revenues and reduces the net cost of operating a

facility.


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CONCLUSION

PRNS cost recovery rate is approximately 40%. The Department recognizes that parks and recreation are

a valuable social service to the community and include a range of general fund subsidies. The goal of

PRNS is to increase the cost recovery rate to approximately 50% over the next five years to minimize the

Departments reliance on the general fund and maintain quality recreation programs and services thatuphold the best interest of the community.

The PRNS Pricing and Revenue Policy and guiding principles focus on the development of creative

solutions to ensure that our residents can continue to enjoy properly maintained parks and community

centers. If we do not continue to implement fundamental changes toward how we operate, PRNS

programs and services will need to be reduced or eliminated.

EVALUATION AND FOLLOW-UP

On November 20 and December 3 of 2008, PRNS staff conducted Pricing and Revenue Plan community

meetings with key PRNS stakeholders and user groups. Those included; sports, aquatics, seniors, park

advocates, after school recreation, Strong Neighborhood Initiative, community center and teen center

users. Discussions focused on Pricing and Revenue Plan background and objectives, identification of levelsof benefit, pricing methods, scholarships and strategies on future stakeholder meetings.

Throughout February 2009, eleven community meetings were conducted within each Council District on

the Pricing and Revenue Plan. Attendees included; sports, aquatics, seniors, community center and teen

center users, park advocates, after school users, neighborhood association representatives, advisory

groups, SNI representatives and department partners. Discussion included; Pricing and Revenue Plan

background and objectives, future pricing methods, cost of service and scholarship. The community

provided feedback on all the components listed above and was generally in favor of developing new

pricing methods for PRNS programs and services.

COORDINATION

This memo has been coordinated with the City Attorneys Office, The Budget Office and the CityManagers Office.

COST SUMMARY/IMPLICATIONS

There are no additional costs associated with this report.

Lonny Zimmerman

Assistant Director, Parks, Recreation

And Neighborhood Services


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1.6 CONCLUSIONThe Parks, Recreation and Neighborhood Services Department has a great history of providing excellent

services to the residents of Las Vegas. Over the last five years there have been many changes to the

Department that has disrupted the culture of the organization and the moral of the staff tremendously.

This has created a very negative work environment for the staff. The Pricing Policy and Revenue Planhas evaluated the culture of the organization to change its ability to support the Citys Structural Budget

requirements and has created many recommendations that can change the direction of the Department

to become more self- sufficient while still providing excellent customer service in a positive work culture.

These recommendations are outlined in the Plan and focuses on the following:

Organizational Design and Communications Recommendations Data Tracking and Cost of Service Assessment Recommendations Pricing Recommendations Development of a Pricing Policy Development of Earned Income Opportunities to Offset Operational Costs Action Plan to Achieve Success

There is no question about the Departments capability to meet the recommendations. It will require the

support of the City Managers office and City Council to make these recommendations a reality. The

Department has great park and recreation professionals that are capable of leading the Department

through the process given the opportunity. Great Challenges when met lead to great results. The City

Manager has outlined five key strategies for staff to follow:

Our Core Purpose: Build Community to Make Life Better

Business Definition: We Run The City Core Vales: Action Strategic Anchors: Sustainable, Iconic, and Service Value Thematic Goal: A common issue to work toward

The Department can meet these goals if allowed to implement the recommendations in the Pricing Policy

and Revenue Plan. The Department can make life better for users of the system. They can provide great

parks, facilities and services to residents and visitors of the city. They can put these recommendations

in Action immediately, they can become more Sustainable, Iconic and provide Service Value. They can

support a Thematic Goal: A common issue to work toward in meeting the outcomes desired by the City

Manager and City Council.

Now is the time to recapture the Vision and Mission of the Department:

Our Vision is to be A world-class, vibrant, affordable, economically and ethnically diverse,

progressive city where citizens feel safe, enjoy their neighborhoods and access to city

government.

Our Mission is to provide recreation, education, neighborhood resources and human services to

residents, visitors and businesses so they can enjoy a higher quality of life that promotes healthy

lifestyles and engaged and sustainable neighborhoods.


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- ORGANIZATIONAL ASSESSMENT

2.1 STAFF AND STAKEHOLDER INTERVIEWSThe City Manager posts weekly blogs regarding building healthy organizations and how critical it is to

achieve success. The concepts she outlined includes: Our Core Programs: Building Community to Make Life Better Business Definition: We Run The City Core Values: Action Strategic Anchors: Sustainable, Iconic and Service Value Thematic Goal: Increase revenues by 5 percent (February through August 2013)

These concepts are excellent but as part of the Pricing Policy and Revenue Plan the Consulting Team felt

it important to access the organizations capabi lity and culture to achieve revenue. The following

information demonstrates that the culture inside of the Parks, Recreation and Neighborhood Services

needs improvement to meet the expectations of the City Manager in the five key statements outlined.

As part of the planning process, staff interviews and focus groups (10 focus groups with approximately

40 staff members) were completed to gauge the staffs desired outcomes and goals for the updated

pricing and revenue plan. Stakeholder interviews were held with the City Manager and key staff

leadership. Focus groups were with the various staff divisions in both Parks and Recreation Services and

in Neighborhood Services.

Key issues were identified that needed to be addressed to determine the key values the staff would like

to be managed by for the future. This helped the Consulting Team to determine where to place their key

recommendations to meet the pricing and revenue goals for the Department. It needs to be noted that

very little participation in this process came from the Neighborhood Services Division within the

Department even though they were invited into the process.

2.1.1 GOALS TO SUCCES S AS IDENTIFI ED BY THE PARKS, RECREATION AND

NEIGHBORHOOD SERVICES STAFF

Strong visibility and a positive work culture while doing their jobs Connectivity to each other via appropriate planning processes Supportive at all times by their direct supervisors Training on all levels to improve on their management skills Positive Communications upwards and downwards in the Department Teamwork throughout the Department Recognition for work done well Data management consistent and timely Trust by Administration of the work that they perform Best practices are instituted throughout the Department Cost recovery goals are met and appreciated by upper management


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Pricing of services are classification and market based not politically based2.1.2 VALUES IDENTIFIED BY STAFF FOR THEIR DEPARTMENT TO INCORPORATE INTO THEIR

DAILY WORK PRACTICES

Pride in the services we provide Proud to work for our Department and City Honesty/trust/integrity Respect Accountability Leadership Communication Satisfaction Customers Community impact Quality Other peoples opinion Focus

2.1.3 WHAT DOES AN IDEAL PARKS, RECREATION AND NEIGHBORHOOD SERVICES

SYSTEM LOOK LIKE?

Flexibility by staff in doing their jobs and still achieving their goals

Do not manage the Department from a defensive position Outcome based focused versus effort based focused Proactive not reactive Visionary Sharing the why behind directives given to the staff by upper management Training opportunities that keeps the staff focused on being a cutting edge Department Team focused system versus individual focused employees Growth opportunities within the Department for staff advancement Rewards for a job well done in meeting city leadership expectations Know you are capable of making a difference Know what the cost recovery goal is for the department and allow us to get there Business plan focused with business plan principles in place Know what true direct and indirect costs are for all services and facilities we manage


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Annual incremental price increases Staff evaluations done on an appropriate timely basis Do not subsidize private contractors Pay raises for meeting performance outcomes desired by Administration Alternative funding alternatives put into place Equitable partnerships are in place Proactive in their work World class Department that is respected in the city and outside of the city Dynamic staff, facilities and services Flexible and accountable staff Dedicated work force Creative is allowed and appreciated Customer driven focus by all people working in the Department Leaders in the parks and recreation industry Business model with social aspects applied Award winning Department on a state and national level Team oriented throughout all levels of the system

2.1.4 DESCRIPTION OF THE WHAT THE DEPARTMENT WOULD LIKE TO BE KNOWN FOR

Innovation Top quality Fun Best facilities Diversity Quality Values Best department in the city/state

2.1.5 STEPS TO ACHIEVE VISION

Refocus and train staff to be outcome driven Develop culture around values and expected outputs Hold staff accountable Clear/consistent messages from upper management


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Rebranding, repurposing and marketing the Department on what the Department can do forresidents of the city

Developing a cohesive culture

Valuing staff opinion on decisions being made Engage hourly staff in determining how services are delivered Rebuild trust within the Department and with upper management Break down barriers for staff to achieve success Accurate timely data Reasonable policies Responsiveness Review and reassign duties

2.1.6 STAFF DESIRED OUTCOMES FROM THE PRICING AND REVENUE PLAN

From a pricing stand point, the Department wants to know what the cost of service is for eachunit managed to determine the true cost recovery level and what cost recovery level is desired

by management for them to achieve. This would include:

o Each price of services should be evaluated for programs and facilities managed by theDepartment.

o The pricing philosophy needs to be re-addressed based on the process used in settingprices and the criteria to determine what constitutes a core essential, important and

value added service.

o The Department uses several pricing models; identifying one model to work from is anoutcome desired by staff.

o Establish a pricing and earned income foundation of thinking on how the businessmodel works for the agency and applying it to facilities and program pricing.

A Pricing Policy is needed that informs City Council how fees are considered and restructuredto support financial sustainability for the Department and the Citys Structural Budget

o A defined process for pricing is needed for staff to follow.o How and when fees are increased needs to be established.

Currently, the Department is underpricing the Safe Key Program and other areas such asSeniors Services (e.g. the $2 membership).

o Need to establish our membership rates around the YMCA rates in the city for similarservices.

o Many seniors desire an increase in price to allow for increased programming. The Department should examine if current program offerings are relevant based on who the

service is provided for, for what purpose, for what benefit, for what outcome and at what

costs.


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Utilization of data the Department has collected through Oracle and Rec Trac should be used tomake better decisions on pricing. This will require that the Department learn to trust the data

and ask the software contractor to put in systems for that achieves the information desired.

A Zero Based Budget approach should be used that aligns with our Pricing Policy to determinewhat costs are necessary for each program and facility managed by the Department.

All the projects associated with pricing and earned income should include the Administrationstaff and the Supervisor staff in the decision process.

Computer system software for Rec Trac is a real problem that needs to be resolved as it isdifficult for staff to work with and it is hard for staff to work with. There are too many

mistakes made in the data input process which results in poor data tracking.

Identifying the needs of the community is an outcome the staff would like to see addressed.This would require an updated needs analysis via a statically valid survey.

Better communication within the Department is desired based on what administration iswanting the Department to achieve and why?

The Department would like to re-establish the core essential, important and value addedservices criteria again and train staff on what this means to the process of establishing user

fees.

o Also, the Department would like and need to go back and identify to what is a public,merit and private service and how this matches to core essential, important and value

added services

A complete cultural change inside of the Department is needed as part of the outcomes of thiswork is desired to make the process successful.

The staff management standards for staffing levels needs to be addressed for facilities andprograms.2.1.7 PRICING AND REVENUE ISSUES THAT NEED TO BE ADDRESSED

Revenue Policy needs to be updated. The Department is a perception based agency; establish how many hours it takes to track

something that adds meaning to the staffs work versus collecting information that does not

have value to the Department or the city as a whole.

A large amount of bureaucracy is built in the process to rent a field or shelter, which is drivingcustomers away from using the city services which is un-necessary.

The staff desires PROS Consulting to address why the Department and City each have an auditdepartment versus the Department just using the Citys audit department for overseeing the

Departments management and cash handing requirements.

The RecTrac software does not run smoothly and the software is causing problems; it is the hubof the Department and staff cannot receive reports from the system in a timely manner

Marketing of the programs and facilities managed by the Department does not exists, which maycause issues with raising desired revenues.


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Move to excel based cost of service accounting process versus access accounting software indevelopment of a cost of service model for the future.

Evaluate the core functions of each service provided and determine where the services falls inits criteria and then determine the price of the service.

The administration is deep into a revenue enhancement plan and this revenue and pricing planneeds to be connected to the one being developed by the City Managers Office.

Policy recommendations for pricing is needed. The policy still exists but nobody has acted on itsince it was completed four years ago.

2.1.8 CULTUR AL ISSUES THAT SHOULD BE ADDRESSED

There are barriers between the two Divisions, the role and respect for each others work is notin place because their operating philosophies are different.

A key cultural issue is having written policy and procedures for the entire Department to follow. Safe Key is doing really well. The Department needs to re-image itself from a drop in child care

provider to a recreation provider for the future.

There exists an us versus them dynamic in the Department that is taking peoples energy awayfrom doing their work in a positive manner.

2.1.9 BARRIERS TO ACHIEV ING SUCCESS

It is difficult for people to have to work from a business unit perspective. Neighborhood Servicesdoes not collect users frees for any services and does not intend to for the work they do which

creates to separate philosophies within the Department.

Some staff members indicated that they would like to see more of the upper management teamin the field to understand the key issues the staff deal with on a daily basis.

The overall feelings are that Divisions are short staffed and employees do not feel appreciatedby upper management.

The Department needs additional full-time staff versus part-time staff, as turnover is high andthe time and cost to replace part time employees have to be recruited and re-trained which is

very costly to the Department.

2.1.10 POLICY ISSUE S THAT NEED TO BE ADDRESSED

A clearer direction on cost recovery is needed by the City Council and City Managers office. Staff feel refunds should be completed at the site level not at the administration level which

causes a lot of problem with the users of the system.

o Rec Trac and refunds are difficult to reconcile Clearer policies are needed for the following:

o Pricing policyo Partnership policyo Earned income policy


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o Volunteer policy The four days a week is not working and this needs to be re-addressed to serve our customers

better for the future.

Supervisors are unable to choose their coordinators, which needs to be address.

2.1.11 STAFFING ISSUES THAT NEED TO BE ADDRESSED AS PART OF THE PRICING STUDY

Staff miss the engagement element at the senior sites. Staffing for Safe Key is still a priority and one more staff person at each site is desired to make

the best experience possible for the youth served.

How do we bring instructional programs back into the Department so we are both a facilityprovider and a direct program provider at the same time?

Additional support staff for the Human Resources division is needed to support the part-timestaff needs in the Department and getting people hired back in a timely manner.

The utilization of staff between various sections of the Department is needed versus everyonejust doing their own thing

2.1.12 MANAGEMENT ISSUES THAT NEED TO BE ADDRESSED AS PART OF THE PRICING

STUDY

Staff want to see this process of updating the Pricing and Revenue Plan utilized and implementedfor the future of the Department.

Use this Revenue and Pricing plan to support our argument that the Department needs to be aleader in the areas it excels in the city versus transferring these responsibilities to other

outsourced agencies.

Trust & Communication is needed in the Department which does not exists between uppermanagement and people in the field

Lack of collaboration between the two divisions in the Department exists and the staff see novalue in trying to make it work better from both sites

Define the direct and indirect connections between Neighborhood Services and RecreationServices


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2.2 ARE WE MAKING PROGRESS ASSESSMENTThis assessment was undertaken as a part of the Baldrige

Criteria for Performance Excellence. It is titled Are We

Making Progress and was circulated to management

employees Department-wide. For organizations that havebeen using the Baldrige Criteria for Performance Excellence,

the questionnaire is conveniently organized by the seven

Criteria Categories.

Over 20 management respondents participated in this survey

which serves as a good yardstick to assess current employee

sentiment at a point in time. These surveys were conducted

in April 2013.

The areas reviewed through this employee assessment template include:

Leadership Strategic Planning Customer and Market Focus Measurement, Analysis and Knowledge Management Workforce Focus Process Management Results

The results by each area are provided in the following pages. These are the key findings from each one

of the key areas and do no list every single question asked of the respondents. The summarized findings are color-coded based on the following:

o 33% or less responses Agree or Strongly Agree Redo 34% - 66% of responses Agree or Strongly Agree Red / Greeno 67% or higher responses Agree or Strongly Agree Green

The reason for evaluating the culture of the organization in the development of this Pricing and

Revenue Plan is that creating revenue to support operations is not an easy task or process. This work

requires a business culture that centers on positive communications, operating philosophies that are

business and entrepreneurial focused, accurate data management, cost accounting and a positive

attitude that is energetic and customer focused in the delivery of services. If these are not presentin an organization it will be difficult for the Department to accomplish the goals upper management

have for them to achieve in financial sustainability. Happy employees will make enormous sacrifices

for the good of the organization. Un-Happy employees cost the organization a lot of money.


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2.2.1 LEADERSHIP

As per the chart below, the employees indicate a low level of confidence in their senior leadership. The

ability and willingness of the leadership to create a positive work environment and to ensure alignment

along organizational values are critical stepping stones in the successful implementation of any planning

process and based on the responses here, they were less than optimal.

The areas of opportunity identified by the staff were with respect to organizational vision and

information dissemination about the organization as a whole. Proactive communication with the staff

and greater staff involvement on a consistent basis would be important to address these issues.

Senior leaders use org.values to guide us (23%)

My organization asks whatI think (24%)

My senior leaders create awork environment that

helps me do my job (33%)

My organization's leadersshare information aboutthe organization (33%)

Leadership


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2.2.2 STRATEGIC PLANNI NG

This overall section follows a similar pattern of response for the Organizations vision as indicated in the

previous section.

Some of the responses provided do not seem to be perfectly aligned with the consulting teams

assessment of the issues. By virtue of asking the employees to submit this assessment, the City sought

to elicit ideas from the employees however, that is not reflected in the low response below (24%

indicated that As it plans for the future, my organization asks for my ideas). There did seem to be

concerns about lack of a work environment conducive to staff effectively doing their work as well as

alignment to organizational values. Both these areas must be addressed at the earliest to ensure the

work culture and staff morale do not get further negatively impacted.

Consistent with the recommendations in the leadership area, proactive information sharing and building

a culture of innovation that allows employees to try new ideas and new initiatives would be useful in

addressing these concerns.

Additionally, conducting the Sterling Model assessments on an annual basis would be helpful for

Department Leadership to be able to gauge trends and improvements in key areas over time.

My organization encouragestotally new ideas innovation

(24%)

As it plans for the future, myorganization asks for my ideas

(24%)

My organization is flexible andcan make changes quickly when

needed (24%)

I know how to tell if we aremaking progress on my work

group's part of the plan (43%)

Strategic Planning


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2.2.3 CUSTOMER AND MARKET FOCUS

As can be seen from the graphic below, this is an area that the City is performing at a high level. Too

often agencies are focused on offerings services they want to offer versus those that their customers may

actually need. Based on staff responses, individual staff members have a high awareness of who their

most important customers are (95%) and regularly ask them what they need and want (81%).

While 81% ask customers about wants and needs, only 57% follow up asking if they are satisfied or

dissatisfied with the work. This completion of the customer interaction process system-wide would be a

good area of improvement. A expansion to a more systemic process, not just for collecting information

but also to analyze it, communicate it to internal and external partners and develop trending data over

time would be helpful in creating a broader awareness among the staff about the Organizations most

important customer.

Another area not demonstrated below but of relevance is employee empowerment in dealing with

customer focus. 57% respondents stated that I am allowed to make decision to solve problems for my

customers. Employee empowerment is a key component to building an organizational culture that prides

itself on teamwork and a sense of pride and ownership in the collective excellence of the organization.Best-in-class organizations such as Disney pride themselves on a very high level of empowerment and

their customer service reflects that collective ownership. The high ratings indicate that the District is

certainly moving in that same direction.

I know who my mostimportant customers are

(95%)

I regularly ask my customerswhat they need and want

(81%)

I also know who myorganization's most important

customers are (52%)

I ask if my customers aresatisfied or dissatisfied with

my work (57%)

Customer andMarket Focus


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2.2.4 MEASUREMENT , ANALYSI S, & KNOWLED GE MANAGEMENT

Staff responses for measurement, analysis and knowledge management were an area of improvement.

While, half the employees indicated that they knew how to measure the quality of their work (52%),

there is room to grow in expanding the establishment and use of performance metrics and written

standards.

The responses seem to indicate that individual employees have greater awareness within their areas but

unsure of how their work fits into the big picture of the overall organization. The City has already been

proactive in addressing many of the data driven needs with its investment in cost of service modelingand maintenance management work as well

Additionally, only one out of three employees (33%) indicated that they knew how the organization as a

whole is doing. Continued system-wide communication and ensuring information gets communicated

consistently at all levels of the agency would be critical in addressing this issue.

I know how to measure the quality ofmy work (52%)

I know how the measures I use in mywork fit into the organization's overall

measures of improvement (29%)

I know how the measures I use in mywork fit into the organizations overall

measures of improvement (29%)

I know how my organization as a wholeis doing (33%)

Measurement, Analysis,& Knowledge

Management


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2.2.5 WORKFO RCE FOCUS

Workforce focus has emerged as an area of relative strength for the City. Commitment to the

organizations success (71%), workplace safety (71%) and team work and cooperation (76%) are

encouraging numbers but they certainly can improve as well. The employees also indicated a less than

average perception with respect to employee recognition and a staff training and job skills development.On the positive side, two out of three employees (62%) indicated that their bosses and the organization

cared about them (62%).

The Consulting team recommends that the City identify training requirements for various positions and

develop by levels of staff and categories. It would be important to align training opportunities to

strategic goals. Thus, if excellence in customer service is an on-going strategic goal for the City, then

some additional training areas could include providing front desk staff and front line program staff

training on the importance of their interactions with the customers, including first impression, cross

selling techniques and up-selling or promoting offerings particularly for rentals and active programming.

Additionally, given the Las Vegas extremely diverse demographic mix, diversity training would be helpful

to staff in better dealing with its current and potential target market. From a sustainability theme

perspective, workshops on grant writing / sponsorship or advertisement generation would also valuable

opportunities.

My bosses encourage me to develop my jobskills so I can advance in my career (38%)

I am recognized for my work (43%)

The people I work with cooperateand work as a team (76%)

I have a safe workplace / I amcommitted to my organization's

success (71%)My bosses and my organization

care about me (62%)

Workforce Focus


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2.2.6 PROCES S MANAGEM ENT

The feedback for Process management is slightly higher compared to Strategic Planning or Leadership

but not at optimal levels. The Consulting team recommends a policy-based structure that drives process

as opposed one where lack of policies result in procedures becoming interchangeable with policies. Some

policy elements that need to be developed or expanded include:

Pricing policies to help set prices based on cost recovery goals Partnership / Volunteer policies Earned income policies Internet and social network use policies Internal communication policies Customer service

Overall, the employees still indicated that they are prepared to handle an emergency and have good

processes as well as adequate control over their work processes. Some suggested changes would be:

Develop standard operating procedures SOP (e.g. how to manage / maintain aspect of thesystem such as lighting, irrigation, signage, restrooms, turf, and sports related equipment) and

/ or integrate existing procedures into a collaborative operating manual to ensure legacy

knowledge from long-term staff is adequately captured and onboarding new staff is seamless Continue to classify all service offerings based on what is core, important or discretionary to the

Citys long term vision and mission. These classifications would be based on alignment with

Citys strategic focus and the level of individual versus community benefit afforded to the users.

We are prepared to handle

an emergency (67%)

I can get everything I need

to do my job (48%)

We have good processes fordoing our work (29%)

I have control over my workprocesses (33%)

Process

Management


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2.2.7 RESULTS

In reviewing employee responses to this final criterion, there is unquestioned support that respondents

feel customers are satisfied with their work 95%. The organization obeys laws and regulations (71%)

and work products meet all requirements (71%) which are good indicators. The key areas of concern are

My organization has high standards and ethics 33%. This is a very low number and any concerns dealingwith ethics and standards must be looked into right away to ensure it does not spiral out of control.

With respect to removing things that get in the way of progress, 10% is a very low number and indicates

the need for a systemic change with respect to the operating culture in the agency. In order to alleviate

this and become a more responsive organization, a transition to an outcome-based culture would be

recommended. This approach is more results-driven and focuses on building planning tools and

performance metrics to determine future course of action. A key complement to that would be ensuring

the right staffing mix with aligning staff competencies with areas of need and updating work profiles and

individual roles and responsibilities to meet the established outcomes.

The presence of planning tools fleshes out hindrances and thus helps expedite the rate of change that

the City envisions to successfully implement any future planning initiatives. In order to ensure maximumaccountability and objective definitions of success, performance metrics must also be tied to the

planning tools. Some examples are customer satisfaction, capacity utilization, customer retention,

sustainability comparisons, program innovation, earned income generated and cost recovery levels,

percent of standards met etc.

My organization is a good place towork / My organization helps me help

the community (62%)

My organization obeys laws andregulations / My work products meet

all requirements (71%)

My customers are satisfied with mywork (95%)

My organization removes things thatget in the way of progress (10%) /

My organization has the right peopleand skills to do its work (19%)

Results


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SUMMARY OVERALL STRENGTHS

Workforce Focus Customer and Market focus

Teamwork Customer satisfaction

SUMMARY OVERALL OPPORTUNITIES

Lack of awareness of vision, mission and values Internal communication and system-wide information dissemination is lacking Internal staff input not utilized Inadequate processes or control over them Staff encouragement and recognition

Bureaucratic and not right-staffed


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2.3 RECOMMENDED RE-ORGANIZATIONThe following is an organizational concentric circle design that depicts what a great organization strives

to adhere to in that they operate in a way where by as a Department each division is connected by a

strong vision and mission. They understand their connectedness to each Division within the Department

and they understand how to work as a team. The outside forces that put pressure on the organizationare not able to penetrate the organization in a negative manner if they work well together and are able

to solve problems collectively together that keeps the organization moving forward. This organizational

model has enormous value and it truly works when developed and managed accordingly. This

organizational model was presented to staff and they indicate that they would like to pursue managing

to this model for the future within the City of Las Vegas.


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2.3.1 FUNCI TIONAL ORGANIZATI ON CHART

The proposed recommended organizational chart would allow the organization to move forward in a

cohesive manner and allow functional elements to work in systemized efficient manner. Like kinds of

programs, facilities and services are connected in a manner that will allow the Department operate in

the most efficient manner versus the way the organization is set up today. Neighborhood services arenot incorporated into this organizational model due to the fact that they are much more aligned with

how Housing Departments work in a city as they deliver socially based services that are not business

focused and they are not expected to create a level of cost recovery as the Parks and Recreation

Department is expected to deliver back to the city in revenues.


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- PRIING PHILOSOPHY

3.1 PRICING PROCESSThe goal of the updated pricing policy recommendations will assist the Department to manage their

system in the most cost effective manner and help to support their goal to become more self-sufficientthrough effective methods of pricing services and creating earned income. This cost recovery process is

as follows:

Develop true cost of service for each facility involved in pricing changes Determine Competitor Prices for similar facilities Set cost recovery goals for the facility based on the quality of the experience and classification

of service

Determine prime time and non-prime time pricing


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A milestone of the project was a review of the Departments cost of service analysis that included

recommendations for expense management strategies. This aspect involved a review and evaluation of

operating costs and methods to develop an efficient and pragmatic process to estimate functional direct

and indirect costs based on the program or services overall operating costs. Finally, a summary of

recommendations for managing expenses and revenues in the future were developed as a resource andare intended to be one of the outcomes of this pricing and revenue plan. The cost of service process

consisted of the following steps:

Improve the ability to describe and communicate the true costs of proactively managing the Cityof Las Vegas Department of Parks, Recreation and Neighborhood Services.

Confirm the applicability and usability of the expense data for program services and parkoperations. This was provided by staff to the Consulting Team.

Identify the most relevant and pragmatic cost categories that capture the major functions ofpark and recreation units and those that will support meaningful management decisions without

creating a false sense of precision.

The illustration below depicts the cost of service analysis and allocation process that was followed in this

project.

Gather andconfirm

program andservices

operating costs

Identifyappropriate

cost of servicecategories

Allocate overallunit costs to

cost categories

Estimated costof service for

programservices

functions


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3.2 CLASSIFICATION OF SERVICESClassifying services is an important process for a park and recreation agency to follow in order to remain

aligned with the communitys interests and needs, the mission of the organization, and to sustainably

operate within the bounds of the financial resources that support it. The criteria utilized and

recommended in service classification stems from the foundations concept detailed by Dr. John

Crompton and Dr. Charles Lamb. In Marketing Government and Social Services, they purport that

programs should be evaluated on the criteria of type, who benefits, and who bears the cost of the

program. This is illustrated below:

The approach taken in this cost recovery project expands classifying services in the following ways:

For whom the program is targeted For what purpose For what benefits For what cost For what outcome

Type ofProgram

Public service

Merit service

Private service

WhoBenefits?

All the public

Individuals who participate benefit but all members of the community benefitin some way.

Individual who participates

Who Pays?

The public through the tax system, no user charges

Individual users pay partial costs

Individual users pay full costs


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3.2.1 SERVICE CLASSI FICAT ION DESCR IPTIONS

The service classification matrix below was developed as a guide for Department staff to follow when

classifying services and for how that program needs to be managed with regard to cost recovery. By

establishing clarification of what constitutes a Core Essential Public Service, Important Pub lic

Service, and Value Added Service will provide Department and its stakeholders a better understandingof why and how to manage each program area as it applies to public value and private value.

Additionally, the effectiveness of the criteria linked to performance management expectations relies on

the true cost of programs (direct and indirect cost) being identified.

Where a program falls within this matrix can help to determine the most appropriate cost recovery rate

that should be pursued and measured. This includes being able to determine what level of public benefit

and private benefit exists as they apply to each program area. Public benefit is described as, everyone

receives the same level of benefit with equal access. Private benefit is described as, the user receives

exclusive benefit above what a general taxpayer receives for their personal benefit.

CRITERIA TOCONSIDER

CORE ESSENTIAL PUBLICSERVICES

IMPORTANT PUBLICSERVICES

VALUE ADDED SERVICES

Public interest ordevelopmentalimportance as well asmandated by law and ismission aligned

High Public Expectation High Public ExpectationHigh Individual and Interest

Group Expectation

Financial sustainability

Free, Nominal or Fee Tailoredto Public Needs

__

RequiresPublic Funding

Fees Cover Some DirectCosts__

Requires a Balance ofPublic Funding and a Cost

Recovery Target

Fees Cover Most Direct andIndirect Costs

__

Some Public Funding asAppropriate

Benefits i.e. health,safety, and protectionof a valuable asset.

Substantial Public Benefit(negative consequence if not

provided)

Public and IndividualBenefit

Primarily Individual Benefit

Competition in themarket Limited or No AlternativeProviders

Alternative Providers

Unable to Meet Demand orNeed

Alternative Providers ReadilyAvailable

Access Open Access by AllOpen Access / Limited

Access to Specific UsersLimited Access to Specific

Users


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3.2.2 SERVICE CATEGORIES AND LEVELS OF PUBLI C BENEFI T

CORE ESSENTIAL PUBLIC SERVICES (PUBLIC SERVICES)

The cost for providing mission-aligned services is solely or largely supported by tax revenue. Public

services offer all users the same level of opportunity to access the service. The level of benefit is the

same to all users.

Core Essential Public Service Example:o Open public access to use a park, playground, trail or non-reservable picnic area or park

space

IMPORTANT PUBLIC SERVICES (MERIT SERVICES)

Services identified as important and help support the organizations mission. The user receives a higher

level of benefit (such as instruction or an organized staff-directed program) than the general taxpayer;

and yet the taxpayer benefits as a whole because the service provides a more livable community and the

service has a good public benefit as well.

Pricing for these services could include partial overhead pricing or variable cost pricing. Partial overheadpricing recovers all direct operating costs and/or a portion of fixed indirect costs. The portion of fixed

costs not recovered by price represents the tax subsidy.

Important Public Service Examples:o Kayak and fishing skill development lessons, nature education programs, after-school

youth programs, and activities and events that promote healthy nature-based outdoor

lifestyles

VALUE ADDED SERVICES (PRIVATE)

Includes services that only users or the visitors benefit. Pricing of private services should recover all

direct and indirectcosts associated with the service.

Value-Added Service Exampleso Rental space for weddings, events, parties, and business meetings, entertainment and

special use permit events, fitness classes, retail sales and food concessions, and exclusive

use of park amenities

3.3 PRICING PHILOSOPHYIt is recommended that the City of Las Vegas Parks, Recreation and Neighborhood Services state its

philosophy in all publications, on its website and in its reservation processes to describe how a price for

a service or use of a facility is established. For example:

City of Las Vegas Parks, Recreation and Neighborhood Services funding from taxpayers isfocused on mission-based facilities and services primarily centered on, parks, community centers

and program services. The programs and facilities that are furthest from our mission, that

provide an individual benefit, or that provide exclusive use may require revenue from users or

other sources to help offset some operating costs.


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3.3.1 KEY COMP ONENTS

The Pricing Policy includes seven key components:

Classify the service as Core Essential, Important and Value Added Know your cost to provide the service or facility Determine public value and private value of the service Determine what the market elasticity is for the service Price to the cost recovery goal established Provide price alternatives that allow people to access the service Find other earned income opportunities where appropriate to offset taxes and users fees to

provide the service

3.4 PRICING RECOMMENDATIONS3.4.1 GENERAL RECOMMENDATI ONS

Develop a mini-business plan for the facility depending on how large the facility is and itsoperating budget

Market and Promote the Facility to reach capacity levels desired Update the pricing policy to reflect the cost recovery goal Theme Community Centers to make stronger destinations Make unproductive space productive Develop Revenue Revolving Funds for facilities to allow them greater flexibility


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3.5 MARKET PRICING COMPARISONAs part of the update to the Pricing Policy and Revenue Plan, the Staff completed an assessment of

regional pricing rates for programs and facilities. The following tables show comparisons in the region:

3.5.1 MUNICPAL SPORTS FIELD USE

Municipal Sports Field Use

Seasonal League Permits Tournaments General Use/Hourly

City of Las

Vegas

$3/hour per field No charge for lighted hours No charge for field monitors

$15/hour for non-profitorganizations

$30/hour for commercialorganizations

No charge for lighted hours No charge for field monitors

Not Applicable

Clark County Youth Community Rateso $40/team per season no

lights

o $125/team per season includes lights

Youth Commercial Rateso $80/team per season no

lights


Adult Community Rateso $120/team per season no

lights


Adult Commercial Rateso $240/team per season no

lights


Youth Community Rateso $40/day per fieldo $20/hour per field Lighting

Fee

o $40/field/occurrence Grooming

Youth Commercial Rateso $80/day per fieldo $20/hour per field Lighting

Fee


Adult Community Rateso $120/day per fieldo $20/hour per field Lighting

Fee


Adult Commercial Rateso $240/day per fieldo $20/hour per field Lighting

Fee


Community Rateso $12/hour per field

(max of 3 hrs.)

o $90/day per field(3+ hours)

o $20/hour per field Lighting Fee

Commercial Rateso $24/hour per field

(max of 3 hrs.)

o $180/day per field(3+ hours)

o $20/hour per field Lighting Fee

*Note: Clark County has discretion to require field monitors depending on event, and will assess $15 per hour per monitor as

needed.


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Municipal Sports Field Use

Seasonal League Permits Tournaments General Use/Hourly

Henderson Not Applicable Not Applicable Non-Profit Rateso

$5/hour per field no lights

o $10/hour per field includes lights

Commercial Rateso $7.50/hour per

field no lights

o $15/hour per field includes lights

*Note: Henderson includes additional costs such field lining, set-up costs, initial field prep per occurrence, Holiday prep rates and

Henderson also charge $15 per hour for field monitors.

Based on the comparative analysis the Parks, Recreation and Neighborhood Services fees for the city of

Las Vegas are undervalued and below market rates of what other cities and the county are charging for

similar type facilities.

The key to effective pricing for game fields is as follows:

Is the service a core essential, important, or value added service? Does the service fit into a public, merit or private service? What level of public good and private good is present? What is the true cost to provide the service as it applies to maintenance, utilities, as staffing

costs?

Is the sports group generating revenue to support their teams, tournament off of a public facility?If so how much?

What is the value of exclusive use of a public facility for private gain?In the case of the City of Las Vegas, they provide an important service for youth programs in the city

where-by there is public good and private good associated with playing on public owned facilities for

leagues not sponsored by the city. In most situations public agencies try to recover 50% of their

operational costs for permitting these facilities to city youth sports groups.

The Parks, Recreation and Neighborhood Services Department has presented to City Council in the pastand recommended that the fees for exclusive use of city owned facilities for youth sports recovery 50%

of their costs. This recommendation should be approved.

The Parks, Recreation and Neighborhood Services Department has presented to City Council that adult

sports groups cover their direct costs for exclusive use of public facilities for profit sports leagues. This

recommendation should be approved by the City Council.

It should be noted that PROS Consulting recommends that the city adopt a new policy for waiving fees

for quote partnerships be developed. There are many times when a community group or not-for-profit


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will attempt to secure a building, room, field, or sports complex when they become aware of the price

they approach city officials to Co-sponsor the event in order to avoid paying the prices for exclusive

use of city owned facilities whereby they are able to generate a profit at the citys expense. If the city

officials want to Co-Sponsor an event there should be a formally executed agreement between the City

of Las Vegas and the outside group similar to formal agreements the city has with the School District andother Municipalities in the valley.

The executed agreement should speak to Partnership Equity, the benefits to both parties, purpose of the

agreement, how should pricing and possible waiving of fees be dealt with, and whether a financial benefit

will be realized for the outside group. The existing Fee Waiver Policy and Form is not a formal

Partnership Agreement.


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3.5.2 PICNIC FACIL ITIES

The Department charges a reservation fee for exclusive use of a picnic pavilion currently. The

Department does not have a commercial rate similar to Clark County. Most park and recreation agencies

have a prime time and non-prime time price for picnic pavilions as well. The Department does not know

its true cost to provide the service or the current level of capacity of use. Staff has recommended a priceincrease from $50-$100 to $75-$125 dollars which PROS Consulting supports. PROS also recommends that

the Department create a prime time (Friday, Saturday, and Sunday) and non-prime time rate (Monday-

Thursday) as well as a commercial rate fee for private groups who make profit off of a public facility.

Picnic Facilities

City of Las

Vegas

Rates based on number of people expectedo 1-24 $15 per dayo 25-50 $25 deposit/$25 per dayo 51-100 $25 deposit/$50 per dayo 101-199 $50 deposit/$100 per dayo 201-400 $75 deposit/$150 per dayo 400 + Special event rates

With a DJo 1-200 $50 additional per houro 201-400 $75 additional per hour

Clark County 100 limito $50 fee per day community feeo $100 fee per day commercial fee

250 limito $125 fee per day community feeo $250 fee per day commercial fee



Henderson Henderson Picnic areas * two hour minimumo 25 limit $10 per hour/$50 deposito 75 limit $20 per hour/$100 deposito 100 limit $25 per hour/$50 deposito 150 limit $50 per hour/$100 deposito 200 limit $75 per hour/$150 deposito 400 limit $100 per hour/$200 deposito 600 limit $125 per hour/$250 deposito 700 limit $150 per hour/$300 deposit


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3.5.3 CAMP RATES

Camp rates for a private service is comparable between Clark County and the City of Las Vegas. The

Department needs to do a true cost of service assessment for their camps to determine the level of tax

subsidy the city is investing in the child for summer camp. Most summer camps are considered a private

good and park systems tend to recovery at least 100% of the direct costs associated with the providingthe service. The Department views camps as a merit service and is subsidizing the program 56% to 88%

depending on the camp site. Some adjustments in pricing should be considered based on the classification

of the service and the true cost to deliver the service.

Camp Rates

City of Las

Vegas

General Campo $75/week for 1st child, $70/week for each additional child

Specialty Campso $115/week for 1st child, $110 for each additional child

Clark County $75/week $15/day drop in fee

Henderson $99/1 child/week $176/2 children/week $231/3 children/week $27/day drop in fee

YMCA $140/week $4/day drop in fee

3.5.4 SAFEKEY RATES

The Department is pricing SAFEKEY similar to other service providers in the valley and is subsidizing the

program at 10%. SAFEKEY is considered a merit service in most communities. The Daily fee could be

adjusted slightly to recover 100% of the cost of the program.

SAFEKEY Rates

City of Las

Vegas

AM Sessiono $5 or $6 per child depending on school hours

PM Sessiono $8 or $10 per child depending on school hours

Clark County

Summer Safekey Rateso $15 per day, $70 per week

AM Sessiono $4 per child

PM Sessiono $7 per child

Henderson Morning Sessiono 1 child $3.80-$4 depending on number of dayso 2 children $6.80-$11 depending on number of days


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o 3 children $9.80 $10.66-$4 depending on number of days Afternoon Session

o 1 child $7-7.33 depending on number of dayso 2 children $11.80-$12.33 depending on number of dayso 3 children $16.60-17.33 depending on number of days

3.5.5 FACIL ITY RENTALS

The Department provides many opportunities for people to rent space for community meetings,

weddings, reunions, gyms and special events at community centers in the city. The city subsidizes these

public and private events between 30% each year. The Department considers rentals as a private service

but still subsidizes the use at a hefty rate. The opportunity to increase the use and rental prices is

evident and should be considered for the future. The city should consider outsourcing their prime times

open times to outside catering and event organizers as another rental options and provide them an

incentive to rent city space by providing a 15% discount to them for renting the space. This may requirethe city to invite meeting an event organizers to provide input in to dcor options the city could provide

in the future. Permitting the options to serve alcohol with approved caterers would also support rental

use as well. Having appropriate sound, AV equipment and other needs of users should be evaluated as

well to maximize the use for the future.

3.5.6 EAST LAS VEGAS COMMUNITY/SENIOR FACILITY RENTALS

Room Capacity Square FtFor Profit

RateNon-Profit

RateAlcohol

Ballroom A 400-600 8623 75.00 50.00 Yes, upon approval

Ballroom B 150-200 4319 60.00 20.00 Yes, upon approval

Ballroom 600-800 12,942 193.00 83.00 Yes, upon approval

Multi-Purpose

Room60 1171 40.00 10.00 Yes upon approval

Learning

Room30 671 14.00 8.00 No

Loom Room 30 802 25.00 10.00 Yes, upon approval

ConferenceRoom 1

20 468 14.00 8.00 No

Conference

Room 215 275 14.00 8.00 No

Bandstand 400 193.00 83.00 Yes, upon Approval

Pottery Room ? 706 Not assigned Not assigned No


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There is a maintenance fee for the following:

Ballroom-$200 Ballroom A-$100 Ballroom B-$100 MPR-$50

OT/Hourly rate is $124/hr. for staff costs (includes 2 staff)

$33/hr./staff for cleanup, tear down or set upRental extras:

PA/w/ one Microphone -$50 Addl Microphones-$10/ea. DVD player-$15 Projector-$50 Screen-$25 White Board-$25/ea.

Power Strip-$10/ea. Extension Cord/Power Strip-$10/ea. Easel-$10/ea.

Suggested Rates based on Market Rates

Room Capacity Sq. FtFor Profit

RateNon-Profit

RateAlcohol

Ballroom A 400-600 8623 165.00 85.00 Yes, upon approval

Ballroom B 150-200 4319 85.00 40.00 Yes, upon approval

Ballroom 600-800 12,942 250.00 125.00 Yes, upon approval

Multi-Purpose

Room

60 1171 50.00 25.00 Yes upon approval

Learning Room 30 671 30.00 15.00 No

Loom Room 30 802 40.00 20.00 Yes, upon approval

Conference

Room 1

20 468 30.00 15.00 No

Conference

Room 2

15 275 20.00 10.00 No

Bandstand 400 200.00 100.00 Yes, upon Approval

Pottery Room ? 706 $40 $20 No


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3.5.7 STUPAK PRICING

Room Regular Rate/Hour

Non- Profit Rate/Hour

Suggested Rates

Arts Craft Room 119 $25 $12.50 $30/hour $15/hr. NP

ESL Monthly Room Fee $224.50 /month Would like increased,

price is negotiated by

purchasing

Class Room 202 $60 $30

ESL Monthly Room Fee $877.50 /month Would like increased,


purchasing

Class Room

203 $60 $30

ESL Monthly Room Fee $702/month Would like increased,


purchasing



Dance Studio $25 $12.50 $30/hour $15/hr. NP

Gym $50 $25

North Side or South Side Gym $25 $12.50 $30/hour $15/hr. NPGame room $60 $30

Kitchen $50 $60/hour

Lobby Area $25 $30/hour

Teen Room $25 $60/hour

Weight Room $25 $12.50 $30/hour $15/hr. NP

Walking Track $10

Normal Hours 8a-9p Monday Friday, 8a-4:30p on Saturday. After Hours Fees would be the Regular Rate Doubled to cover the cost of the area/room if

wanting after hours.

After hours fees also include a staff fee per hour - $45 part time, $82, Full-Time, $87.07 Full-Time Sr, $98.98 Full-Time Coordinator.


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3.5.8 DOOLIT TLE COMMUNITY CENTER

Doolittle Community CenterGym/Multi-Purpose Room/Class Rooms Hourly Rates

Business Hour RatesFull Court $30.00 per hourFull Court (Non-Profit) $15.00 per hour

Half Court $15.00 per hour

Half Court (Non-Profit) $ 7.50 per hour

Multi-Purpose Rooms $30.00 per hour

Multi-Purpose Rooms (Non-Profit) $15.00 per hour

Class Rooms $15.00 per hour

Class Rooms (Non-Profit) $7.50 per hour

*non-refundable cleaning fee* $100.00 per hour

Business Hours

Monday Thursday 8:00am 9:00pm

Friday 8:00am 8:00pm

Saturday 8:00am 5:30pm

Documents

Las Vegas Parks Fees Report