TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Ambrose, Community Services Director
PREPARED BY: Crystal Arora, Management Analyst - Parks & Recreation
SUBJECT:
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Proposed User Fees for Town Square Park and Amphitheater
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RECOMMENDATION
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Conduct a Public Hearing, waive full reading, and introduce Ordinance No. 604-24 entitled: An Ordinance of the City Council of the City of Murrieta, California, Adopting the Town Square Park, and Amphitheater User Fees; and
Find that said actions are exempt from the California Environmental Quality Act (CEQA), as this Ordinance is exempt from CEQA under Section 15061(b)(3) of the CEQA Guidelines, which provides that CEQA only applies to projects that have the potential for causing a significant effect on the environment whereas here, it can be seen with certainty that there is no possibility that the activity in question would have a significant effect on the environment, the activity is not subject to CEQA.
recommendation
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PRIOR ACTION/VOTE
On March 21, 2023, the City Council adopted Resolution No. 23-4653, adopting the FY 2023/24 User Fee Schedule (Vote: 4-1).
On April 4, 2023, the City Council approved a Use Policy and Operations Framework for Town Square Park and Amphitheater for a 24-month pilot period and directed staff to proceed with the recommended next steps for implementing the policy and a Request for Proposals (RFP) to select a special event management company to provide several events annually at the Amphitheater. (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
In 2021, the City of Murrieta (City) completed the construction of the Amphitheater at Town Square Park with the vision of using the space to host significant community events. The Amphitheater has over 750 tiered, built-in seats and may hold 5,000 people in the surrounding grass area, making it the largest outdoor amphitheater in southwest Riverside County. Part of the City Council’s vision for the Amphitheater is collaborating with a third party specializing in special event management to host large-scale events. The City completed a Request for Information (RFI) process in 2022, which prompted the creation of a Use Policy and Operations Framework for the Park and Amphitheater (Framework).
The adopted Framework provided direction for utilizing the Amphitheater for three separate types of events. First, staff should continue programming Community Services Department (CSD) sponsored events, such as Concerts in the Park and Movies in the Park. These events are under the direction and supervision of the CSD Special Events Division. Second was to work with a third-party vendor specializing in special event management to host large-scale events. On October 17, 2023, the City Council approved an agreement with Newman Hospitality Group, LLC (NHG). NHG will be responsible for the coordination of four to six large-scale events at the Amphitheater per year during a 24-month pilot program. Finally, the City Council provided direction to allow community-based events at the Amphitheater coordinated by authorized community organizations. The list of authorized organizations and stipulations of use can be found within the Framework (Attachment 2).
Staff has prepared a proposed Fee Schedule for the use of the Town Square Park and Amphitheater by authorized community-based organizations, included as Exhibit A to Ordinance No.604-24. The principle of a User Fee is that the costs of providing services that benefit individuals or companies should be borne by those who receive the benefit or service and not the entire community. Therefore, the primary objective of a User Fee is to recover a portion, or as much as (but no more than) 100 percent of the cost to provide the service, from the individuals or companies that benefit from the services being provided. The amounts for each fee reflect a variety of actual expenses and staff costs associated with the maintenance and use of the facility, with the theory of recognizing full cost recovery. During the most recent User Fee Update, the City’s User Fee consultant, Willdan Financial Services, evaluated many of the proposed User Fees. The City Manager has the authority to waive the User Fees on an as-needed basis.
Staff recommends that the City Council review and introduce Ordinance No. 604-24. A second reading of the Ordinance will be performed at the following City Council Meeting. This process is consistent with the City’s standard process for implementing and updating User Fees, most recently completed at the May 7, 2024, meeting for the Citywide User Fee Update for Fiscal Year 2024/25.
On May 19, 2024, a public notice was published in the Press Enterprise, Daily Bulletin, and San Bernardino Sun newspaper and made available for public review. The City Clerk’s Department notified interested parties with an active notice on file.
FISCAL IMPACT
The anticipated cumulative revenue impact of the proposed fees is approximately $15,000 for Fiscal Year 2024/25. This estimated amount is dependent on actual service activity performed at the site. Any revenue increases related to the approval of the proposed fees are intended to offset the costs of existing services, which are recoverable.
If the proposed fees are adopted, they will be included in the Fiscal Year 2024/25 User Fees.
ENVIRONMENTAL IMPACT
None.
ATTACHMENTS
1. Ordinance No. 604-24
2. Use Policy and Operations Framework for the Town Square Park and Amphitheater