SUBJECT:

AUTHORIZATION TO ADJUST SERVICE OFFERINGS – PARKS, RECREATION AND CULTURAL SERVICES

OBJET :

AUTORISATION DE RAJUSTER LES OFFRES DE SERVICE – PARCS, LOISIRS ET CULTURE

REPORT RECOMMENDATION

That the Community and Protective Services Committee recommend that Council approve an amendment to the Delegation of Authority By-law, By-law Number 2012-109, to delegate authority to the General Manager of Parks, Recreation and Cultural Services to adjust service offerings, including participant, admission rental and other fees, not to exceed Council approved fees, to increase participation and revenue generation in department programs and services as outlined in this report.

Recommandation du rapport

Que le Comité des services communautaires et de protection recommande au Conseil d’approuver une modification au Règlement sur la délégation de pouvoirs, Règlement 2012-109, afin de déléguer au directeur général du Service des parcs, des loisirs et de la culture le pouvoir de rajuster les offres de service, y compris les frais de participation, d'entrée, de location et autres, sans que de tels rajustements dépassent les frais approuvés par le Conseil, en vue d'accroître la participation et les recettes produites par les programmes et services, comme il est expliqué dans le présent rapport.

Background

Since 2001, the bulk of the registration, admission, membership and rental fees administered by the Parks, Recreation and Cultural Services Department (PRCS) has been approved by City Council as part of the annual budget process. Once approved by Council, there is currently no delegated authority for staff to deviate from the fee schedules to meet operations and objectives.

The delegated authority By-law No. 2012-109 provides the General Manager in some City departments the authority to adjust rates where appropriate to respond to fluctuations in the marketplace. For example, as per section 30 (1) in Schedule “B” the General Manager of Public Works has the authority to adjust municipally managed parking rates where appropriate to reflect seasonal and market adjustments.

DISCUSSION

The Parks, Recreation and Cultural Services Department is seeking delegated authority to adjust fees in an effort to improve the service offerings to clients. This change in delegation of authority will allow the General Manager of PRCS the ability to periodically adjust the prices on selected departmental programs and services in an effort to increase participation and generate additional revenues.

Currently, PRCS is not able to quickly respond to changes in the marketplace. Fee changes must be Council-approved and therefore typically occur during the annual budget process. Granting authority will allow PRCS the opportunity to lower fees to address marketing initiatives. These initiatives will provide the department with the ability to embark upon promotional campaigns which will increase participation and in some cases revenues. PRCS will be able to offer targeted marketing strategies to retain existing clients (e.g. fee reduction for a registration renewal) or to attract new clients in selected targets markets.

Many of the programs and services that the department offers compete in a market where price adjustments are used on a regular basis to increase participation and revenues. For example, it is common practice for not-for-profit and private summer camps to offer a discount for a second or third child from the same family registering in a camp. Likewise, the fitness market is known for its promotional discounts that provide clients with early renewal incentives, discounts for bringing in new members, etc. It is also common practice to offer promotional discounts to increase participation or facility use during non-prime hours and to encourage sampling of new services through complimentary passes.

The new authority will allow the department to discount prices and package programs through service offerings such as bulk discounts, targeted discounts, advertising, rebates, non-prime time discounts, coupons and other promotional opportunities. These changes will allow the department to respond to shifts in the marketplace in a timely manner and enhance the client experience when participating in city programs.

RURAL IMPLICATIONS

The recommendations of this report would benefit residents in all sectors of the City, including rural areas.

CONSULTATION

This is an administrative matter and no public consultation has been undertaken. Previous consultation as part of the Recreation Master Plan project did identify strong support for a flexible approach to service fees, with an ability to react to market and client needs and preferences.

Comments by the Ward Councillor(s)

This is a City wide item.

LEGAL IMPLICATIONS

There are no legal impediments to the implementation of the recommendation in this report.

RISK MANAGEMENT IMPLICATIONS

There are no increased risks associated with approval of this report.

FINANCIAL IMPLICATIONS

The financial implications are expected to be positive, resulting in an increase to annual revenues. This will be monitored through the regular quarterly reporting process to Council.

ACCESSIBILITY IMPACTS

The recommendations of the report have the potential in increase access for persons with disabilities and seniors by giving staff the opportunity to develop pricing incentives that would benefit these groups.

Technology Implications

There are no technology implications associated with this report.

TERm of council priorities

HC2 - Provide accessible, inclusive and quality parks, recreation services and urban spaces for leisure, arts and heritage that respond to demographic trends in population and activity.

SE2 - Improve the effectiveness and efficiency of service delivery to reach targets that have been approved by Council and communicated to residents and staff.

DISPOSITION

Subject to approval of this report staff of the Corporate Development and Environmental Law Branch, City Clerk and Solicitor Department will submit directly to Council the revision to the Delegation of Authority By-law, By-law Number 2012-109, delegating authority to the General Manager of Parks, Recreation and Cultural Services to adjust service offerings, including participant, admission rental and other fees, not to exceed Council approved fees, to increase participation and revenue generation in department programs and services as outlined in this report.

The Parks, Recreation and Cultural Services Department will implement the new delegated authority through its programming Branches.