Report Prepared by: Christopher Jensen, Director of Parks & Community Services
Title
SUBJECT: Request to Set a Public Hearing to Consider Parks and Community Services Proposed Updated Fee Schedule to Include New Rates for Bob Hart Square and Merced Open Air Theater (MOAT), and the Addition of Merced Regional Sports Complex (CP42), and Fahrens Park Disc Golf Course
REPORT IN BRIEF
Parks and Community Services is requesting a Public Hearing be set to consider new fees to be added to the current fee schedule for Recreation Facility Use.
RECOMMENDATION
City Council - Adopt a motion setting a Public Hearing for June 1st, 2026, to consider revisions to the current fee schedule that would include new fees for Bob Hart Square and Merced Open Air Theater and the addition of Merced Regional Sports Complex, and Fahrens Park Disc Golf Course.
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
Mission and Cost Recovery
Parks and Community Services is called to plan, facilitate, promote, maintain, and develop activities and facilities that enhance the quality of life in the City of Merced. The Department serves through two capacities: direct services such as programs and events and indirect services such as recreation field and facility rentals. In order to provide these services at a level that meets community demand the department employs a cost recovery method through the adoption of fees set by City Council through resolution. These fees are revisited periodically to ensure they reflect community expectations, increasing costs, and volume of use.
Increased Expenses
A significant segment of staffing in the department is made up of part time staff whose positions are funded at or around minimum wage. Increases in these wages have a major impact on expenses of the Department. Since the most recent fee schedule was adopted in 2023, California minimum wage has increased about 10%. Likewise, operational costs for equipment, materials, and supplies have also increased at approximately 10%. Increased resource allocation due to vandalism have also increased costs for field and facility maintenance.
Raising wages coupled with increasing cost to provide public recreation services makes it necessary for the Parks and Community Services Department to increase several fees for programs and services to reduce an increased need from the City’s General Fund.
Indirect Services- Field and Facility Rentals
Contracted indirect services have increasing cost, widening the gap between revenue and expense over the last two years. Historically, facilities were opened and closed but not regularly staffed due to having to limit the expenses. This often leads to misused or damaged venues that the City is asked to eventually repair. With the recently adopted fee schedule, Parks and Community Services have been able to begin staffing reserved venue use to ensure facilities are being prepped accordingly, rules are being observed by event/activity hosts, and clean up takes place immediately afterword and any damages or misuse are recorded.
There have been multiple instances in the last quarter of 25/26 fiscal year that have given rise to the need to adjust or revise the current fee schedule. The department would like the opportunity to host a Public Hearing to discuss and address these instances in a manner that is reflected on the current fee schedule.
Block Rate Fees for Use of Bob Hart Square and Merced Open Air Theater
The City has invested significant resources to plan and build Bob Hart Square as a reservable event space to help mitigate the ongoing request for the use of streets and parking lots for large scale events Downtown. The renovation of the Bob Hart Square and the addition of the Merced Rotary Stage serve as a great venue while simultaneously maximizing parking lots, streets, and traffic downtown.
As a regional park, much like Downtown, Applegate serve both residents and visitors through large scale events. Most of such activities are hosted in the Merced Open Air Theater or MOAT which is an outdoor amphitheater.
The current rate for these facilities has proven to be more than the community can handle for large, lengthy events. Staff have met with event promoters and supporters, reviewed the suggestions in comparison to expenses and determined that a block rate schedule may be more feasible for community use and still affordable in consideration of both facility use, staffing and associated costs.
Fahrens Park Disc Golf Course
Fahrens Park is home to the City’s only disc golf course and host to many tournaments, recreational play and also formal competitions. This park is also used for many leisure recreational activities including walking, running, and biking by the general community. Like any recreational space, the infrastructure, amenities and maintenance is carried out for public good but at times, may be reserved for private uses. The City has a operational standard which includes user fees for private use that minimizes the general public’s utility of a recreational space. This includes private, non-profit, or partner uses of public spaces. This is especially important when costs are affiliated with participation in a private event in a public space. As such, the City Parks & Community Services Department requires fees to be paid for any use that requires a cost to participate if the event takes place in a public recreational space.
One space that has yet to be incorporated in the City’s Recreational Fee Schedule is Fahrens Park Disc Golf Course. The Course is routinely used by disc golf organizations for routine weekly’s, weekend events and multi day tournaments. As such, it is the recommendation that fees be set and included by any reserved use of the Fahrens Park Disc Golf Course.
Merced Regional Sports Complex (CP42)
To ensure the City is positioned to effectively manage, program, and maintain the Merced Regional Sports Complex (CP‑42), staff recommends setting a public hearing to consider revisions to the City’s Fee Schedule Resolution to include facility use and rental pricing specific to the complex.
As CP-42 transitions from planning to phased development and eventual operation, establishing a clear, equitable, and market-informed fee structure is essential to support cost recovery, guide user expectations, and ensure consistent application of fees across comparable regional facilities. Currently, the City’s adopted fee schedule does not contemplate the scale, amenities, or operational demands of a regional sports complex, creating a gap that must be addressed prior to activation.
Summary
In consideration of the details provided, Staff recommends setting a public hearing to revise the Fee Schedule Resolution to include a block rate fee scale for use of Bob Hart Square and Merced Open Air Theater and the additional of Fahrens Park Disc Golf Course and Merced Regional Sports Complex (CP42). A public hearing will provide transparency, allow for stakeholder and community input, and ensure the proposed fees align with Council priorities related to accessibility, financial sustainability, and regional competitiveness.
IMPACT ON CITY RESOURCES
No impact required to set the Public Hearing.
ATTACHMENTS
1. Resolution 2025-75
2. Current Fee Schedule