Report Prepared by: Christopher Jensen, Director of Parks and Community Services
Title
SUBJECT: Setting Public Hearing to Adopt Resolution for Parks and Community Services Fee Schedule
REPORT IN BRIEF
Considers setting a date of December 15, 2025 to host a Public Hearing in consideration of a resolution supporting the proposed Parks and Community Services fee schedule including the addition of Bob Hart Square Plaza.
RECOMMENDATION
City Council - Adopt a motion:
A. Providing staff direction on considerations for new fee schedule; and,
B. Setting a date for a Public Hearing to consider a resolution.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff; or,
3. Deny; or,
4. Refer to the City Manager for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Section 200.
DISCUSSION
Need for Updated Fee Schedule
Facility use fees for City-owned event and recreation venues-such as the Nannini Sports Complex, Merced Senior Community Center, and Merced Open Air Theater-were last reviewed and adjusted in 2023. Since that time, the cost of labor, utilities, and contracted maintenance services has significantly increased.
Key contributing factors include:
• Rising staffing costs: Minimum wage adjustments and expanded event coverage requirements have increased personnel expenses by approximately 10% since the last fee adjustment.
• Increased utility costs: Electric and water rates have risen an average of 5-10% per year, driven by escalating costs for lighting, irrigation, and HVAC usage during events.
• Maintenance and repair needs: Wear-and-tear as well as vandalism associated with large-scale athletic venues and community events require more frequent turf maintenance, surface repairs, and staff hours.
Without a corresponding fee adjustment, the General Fund and Recreation Budget must increasingly subsidize operational shortfalls, limiting available resources for park improvements and youth programs.
Consideration to Transition from Nonprofit Rates to Flat Fee Structure with Escalation
The City of Merced currently offers discounted rates for nonprofit organizations using City facilities. While well-intentioned, the nonprofit rate structure has become increasingly difficult to administer and justify. Staff often must verify nonprofit status, evaluate eligibility, and reconcile inconsistencies between groups with varying organizational capacity, event scope, and resource demands. This process adds administrative burden and does not always result in equitable cost recovery.
Challenges with current nonprofit rate structure include:
• Administrative complexity: Verifying nonprofit status and purpose for each booking consumes significant staff time.
• Inequitable outcomes: Some nonprofit events require extensive staff coverage, utilities, or cleanup yet pay only a fraction of actual costs.
• Difficult justification: Rising labor and maintenance costs make it challenging to explain why certain users are subsidized while others pay full rates for similar resource use.
• Reduced transparency: The public often perceives the discount system as inconsistent or preferential, creating confusion about pricing fairness.
Example of Simplified Fee Model
|
Category |
Fee Type |
Rationale |
|
Base Use Fee |
$100/hr (all users) |
Reflects true cost of staffing, utilities, and maintenance for standard public use. |
|
Private/Commercial Event Surcharge |
+$50/hr (50% increase) |
Applies to events charging admission, selling goods, or generating profit; aligns with market rates. |
|
City-Sponsored or Partnership Events |
Fee waived or reimbursed via program budget |
Maintains City flexibility for civic or collaborative events that directly serve community goals. |
Staff recommends replacing the current multi-tier system (e.g., standard, nonprofit, commercial) with a Base Use Fee for all facility users outside of City sponsored events, accompanied by escalating surcharges for private or commercial activities that require additional support. Escalating charges would include use of additional refuse services, barricades, or utility access in addition to Base Use Fee and/or Private/Commercial Event Surcharge.
Transitioning to a flat-rate structure with escalating fees provides fiscal responsibility, administrative efficiency, and fairness across user groups.
Inclusion of Bob Hart Square as a Function of Parks & Community Services Reservations
The City is nearing completion of Bob Hart Square including a new event plaza with a stage for live entertainment and events. This area is new and currently not included on any City fee structure or reservation process. Staff are requesting to add Bob Hart Square Plaza to the P&CS Fee Schedule as a new Park amenity available for reserved use.
Staff are requesting Council set a Public Hearing for December 15, 2025, to consider adopting a resolution in consideration of the topics presented.
IMPACT ON CITY RESOURCES
No appropriation of general fund is needed.
ATTACHMENTS
1. Current Resolution 2023-46