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Home My WebLink AboutRes2004-025 Sponsored by: Shealy I CITY OF SEWARD, ALASKA RESOLUTION 2004-25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, DECREASING WINTER ELECTRIC MUNICIPAL CAMPING FEES WHEREAS, there is an interest in decreasing winter camping fees which include electricity. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. current rate to: Winter camping fees shall decrease on April 1, 2004, from the A. $20.00 shall be charged per unit for electricity winter camping (between October 1 through April 14 each year) in the designated "Electricity Winter Camping" area. I Section 2. Fees are inclusive of the sales tax at the prevailing rate. {Adjustments to tax rates will not affect camping fees until such time as camping fees are changed again by resolution.} Section 3. This resolution shall take effect ten days after its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska this 8th day of March, 2004. THE CITY OF SEWARD, ALASKA c P&W,,;.Jr>.-..I_~ C. David Brossow, Mayor AYES: NOES: ABSENT: ABSTAIN: Shafer, Dunham, Clark, Valdatta, Brossow Branson Amberg None ATTEST: /' , ) '" 'tt.~l. 'l!i!!;r 1 J!;~ '" ~'\." ,.':.. .,~.4,"-'" ~;.' ~ c'~.. ,_~ ':'...:} ,<f~ {':'~~~~"~;'"~"~:'~".L ';'~~;:',.\ ~~~ ~~~ (..;;.... .....c:\J;.?O('t,..;;,..~.... (} ~ "'""... ' ~".JJ '~-,"""'" "'.. 'U"' ~ ". c'.... ,-,>" .. ---. ., ~ " . -:",,"-:-., .\ ~; .,: ~~ I'~u..t : 0 ;.,~ f~ .. ~~- : ~,& . .. '.J .~" .... -..l"*- .",- l'l ~3 "'. c..-z "ttr. \'~ . ~ 'I~ Ul~.. 'l...J.... '\ \r::, ....~ ( '<'" ,~.l ;~:.}'i}~;;"~ ,:~ ::':J~?~;';:' 't~,.,,~ \.h-!t\ ...:~.. .";ilQ~':' I (City Seal) Agenda Statement Meeting Date: March 8, 2004 Through: Phil Shealy, City Manager From: Karin Sturdy, Parks & Recreation Director Agenda Item: Decrease Winter, Electricity Camping Fee BACKGROUND & JUSTIFICATION According to Seward City Code § 11.15.100, “Fees for camping shall be set by resolution of the city council.” Last January, Council created winter camping with electrical service in addition to the regular $2 per night for off-season camping. Winter camping began February 1. To date, we have had zero paid campers in the electric sites, and we have had two campers in the dry camping sites. We have done little to advertise the new service, but that is to be remedied soon, as we intend to advertise in the Anchorage Daily News. However, we suspect the largest share of our market, if any, will come from timeframes much closer to the shoulder of the season, chiefly April and October. The specific question about how accurate, appropriate and sellable our fees are, is really answered at the political policy level. The answer depends on the goal of the City Council. Does the Council wish to market Seward’s winter recreation, bring off-season dollars to town and subsidize the program? Or would the Council rather develop a new program which is self-sustaining or less subsidized? We hoped to have been clear in the original, January Council Agenda Statement, that our objective was to offer an experimental program which could come as close as possible to paying for itself. The huge “weather unknown” was a giant question mark, and the fee we proposed was characterized as “invented,” since we did not and do not know what the expenses and costs will be. Current rates are: Dry winter camping $ 2 Electric winter camp $30 We could recommend lowering winter camping with electricity from $30 to $15 or $20 per night. As the Council considers this question they should plan - not only for now through April 15 when regular fees are set - but also from October 1 through the end of the year. Is the goal to bring in people when they otherwise would not come, or to offer a new, self-sustaining camping program? When a winter camper comes to Seward and decides whether or not to plug into electricity, he/she may ask: Is it cheaper to run my gas generator? Would I do better to park my camper and get a hotel for $45? Do I have a friend’s house I could stay at for the weekend? What other services (shower, bathrooms, water, sewer) do I miss out on? We felt obliged to bring a fee structure to the Council which would be responsible and marketable. However, if the Council’s goal is to market the community, and further subsidy within the parks and recreation department is acceptable, then the other rates of $15 or $20 can be recommended. $15 is more than a dry camper pays during the summer, but our winter maintenance costs are so much higher. (We are spending about 22 staff hours per work week and six staff hours of weekend help on the Winter Campground.) Page 2 / Decrease Winter Electric Campground Fee $20 is more than summer, dry camping, but less than regular, seasonal electric camping which will also include water, restrooms, a shower available and a dump station nearby. Other than staff hours, we have not spent much on the Resurrection area: $100 street sand, $100 salt, $115 signs and the minimal costs to turn the power back on. Whatever the monthly electricity fee is, it will be charged to us next month. The bottom-line analysis is that we are losing money charging $30 per night. We cannot safely cut back on staff hours of winter maintenance, and even without snow. Weather conditions have required a lot of sand and attention. We will continue to lose money if we charged more money per night, because it’s obviously not cost beneficial for campers to use our park at the current rate. The policy decision for Council is: what price are we willing to market Seward camping for? If we wish to market Seward, hoping for other related economic benefits (gas, groceries, restaurants, showers, entertainment) then we recommend the $15 fee to the Council. If we wish to provide a new program which pays for itself as much as possible, we recommend $20 per night. Council can choose Recommendation A or B, depending upon their consensus regarding the policy options above. Following the final policy decision, amendments to the resolution can be offered. ? NOTE: Fees are inclusive of the sales tax at the prevailing rate. {Adjustments to tax rates will not affect camping fees until such time as camping fees are changed again by resolution.} Resolutions setting camping fees take effect ten days following enactment. We have listed April 1 as the new “effective” date of the new fees, if approved. Staff will need time to develop and post signs to advertise. We will make every effort to beat our April 1 deadline, if possible. CONSISTENCY CHECKLIST: Yes No 1. Comprehensive Plan n/a 2. Strategic Plan x 3. Other: 1993 Parks & Rec Master Plan n/a 4. Not Applicable x FISCAL NOTE: The creation of a new fee category (Winter electric camping, $30) was approved by Council in January, but no changes have been reflected in the General Fund, due to it’s experimental nature. Subsequently, any decrease in this category will not impact the General Fund budget plan. The impacts of managing a winter campgrounds are unknown, and expenses were not budgeted in January. _____________________________________ Approved by Finance Department Deleted: A: RECOMMENDATION: Deleted: City Council approve Resolution 2004 - 0 decreasing City Council approve Resolution 2004 – 25,creasing municipal camping fees to $20.00 per de municipal camping fees to $15.00 per electricity winter camping unit. Fees electricity winter camping unit. Fees are inclusive of the sales tax at the prevailing rate. are inclusive of the sales tax at the prevailing rate. ¶ {Adjustments to tax rates will not affect camping fees until such time as camping fees are changed Deleted: RECOMMENDATION B:¶ again by resolution.} Deleted: - Deleted: 0 Formatted: Underline Formatted: Font: Bold, Underline