Title
Resolution to Approve Fiscal Year 2018 Fee Adjustments for Parks & Recreation Services for Argo and Gallup Liveries
Memorandum
Attached for your consideration and approval is a resolution recommending fee adjustments to the Argo and Gallup boat rental prices, to be effective April 14th, 2018.
The City's Capital Improvement Plan identifies capital maintenance work needed at Argo and Geddes dams in Fiscal Year 2020 with a cost estimate of $1,100,000.00. A proportionate increase in the rental fees for individual/group user(s) will help to offset the cost of the project, and provide funding for future recreational dam expenses.
Increase
* 1 person boat $1.00
* 2 person boat $2.00
* Rafts $4.00
The fee increase will bring in approximately $70,000.00 per year, based on calendar year 2017 boat rental activity. This revenue will be set aside in the Parks Memorials and Contributions Fund for the purpose of funding dam maintenance repair costs at Argo and Geddes dams.
The recently approved boathouse lease with Ann Arbor Rowing Club allocated a portion of their annual rent toward dam maintenance needs.
Argo and Geddes recreational dams create the Argo Pond and Gallup Park and Pond. These locations provide the opportunity for visitors to go on pond paddles, learn basic canoeing and kayak skills, try stand up paddle boarding, take pedal boat trips, and row sculls. Revenues in the amount of approximately $1,050,000.00 per year are generated through boating activities at the Argo and Gallup Liveries.
Maintenance of the recreational dams is a necessary part of the overall cost of providing these recreational opportunities.
Attached you will find comparative fee data. Even with the increase in the rental fee, the boat rental fees remain competitive and more affordable than a number of vendors.
PAC unanimously recommended approval of these fee increases at their January 23, 2018 meeting.
Staff
Prepared by: Colin Smith, Parks and Recreation Manag...
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