LTC 224-2010 Parks and Recreation Program Fees & Contractor Payments MIAMIBEACH
OFFICE OF THE CITY MANAGER
NO. LTC # 224 -2010 LETTER TO COMMISSION
TO: Ma or Ma Herrera Bower and Members of the City Commission
FROM: Jo a onzalez, City Mana r
DATE: August 20, 2010
SUBJECT: Parks and Recreation Program Fees and Contractor Payments
The purpose of this LTC is to explain the Parks and Recreation Department's process of developing
program fees and independent contractor fees for recreation classes, programs and camps offered by the
City but provided through contractors. Additionally, this LTC will help explain how the City's fees and
instructor structure for these class offerings compare with local neighboring municipalities.
Program Development Process and Staffing
The Parks and Recreation Department has consistently offered a wide range of specialized classes and
programs to residents and non - residents alike. Many of our offered classes and programs are staffed by
our in house recreation staff who are city employees. Our Recreation Division manages these classes and
programs on a daily basis. In some cases, however, outside independent contractors are hired when in-
house staff is not qualified to conduct the class, or if work schedules do not otherwise permit it. All
independent outside contractors are directed to present their proposal for classes and programs through
the Human Resource Department's on -line hiring process. More specifically, the recreation division places
ads in the Neighbors Section of the Herald soliciting instructors, and also has a continuous open
placement on the City's website. Independent outside contractors are interviewed by the Facility Manager
at the site where the class /program is offered. In some instances, outside contractors contact us with an
idea for a class, program or a service. They are directed to present their proposal to the Human
Resources on -line web site, at which time the Department evaluates all costs and factors and determines
if their proposal and class is something that should be considered.
Recreation classes, programs and camps are managed by recreation supervisors, yet some programs are
completely performed by the contractor with minimal if any recreation staff assistance. In some cases,
recreation staff is needed to properly maintain a safe staff to child ratio. In all cases, however, in
developing new programs, the Recreation Division will examine:
A) Program costs
B) Whether in -house staff or an outside contractor is needed
C) Other factors necessary to properly and safely conduct the class
Fees and pricing are developed taking into consideration all of the above. Additionally, on July 30, 2003,
the City Commission adopted Resolution No. 2003 - 25307, which authorized the Administration to
negotiate for outside service provider recreation programs and service with a revenue sharing formula not
to be Tess than 20 %, based on economic viability and market analysis.
Independent Contractor Fee Development Process
When the Department determines that an independent contractor is needed, or when a program
proposed by an independent contractor cannot be provided with in -house staff, staff determines the fee
payment structure. Miami Beach pays outside independent contractors on a percentage split of fees
collected. For many of our independent contractors, this split is usually 70/30, where 70 % of collected
class revenue goes to the instructor, and 30% is kept by the City. The Department has, as normal practice,
also contacted local municipalities to compare contractor fees to determine if our independent contractor
fees (and fees in general) are in line with industry standards. Similarly, many neighboring and sometimes
far away cities contact us for similar comparisons. Our analysis shows that most independent
Page 2 of 2
Independent Contractor Fees
contractors at neighboring cities are paid on a 70 %/30% split; the City's typical split is consistent with most
municipalities surveyed. To follow is a small sample of cities surveyed regarding fee splits.
Aventura 70/30 Collier County 65/35
Coral Gables 70/30 Charleston SC 70/30
NMB 70/30 City of DeBary 70/30
Pinecrest 75/25 West Palm Beach 70/30
Sunny Isles 80/20 Weston 75/25
Hollywood 70/30 Boca Raton 70/30
Gainesville 70/30 Plantation 70/30
Seminole 70/30 Tamarac 70/30
South Daytona 70/30 Tavares 80/20
Notwithstanding, in some cases a different split may be warranted for certain City programs (e.g. due to
small numbers in a class, no city cost for the program, etc.). Where the fee split is higher, consideration as
to the type and uniqueness of the program in given. Examples include ballet classes and baby boot camp.
In other instances, the department has found it beneficial to pay the contractor a flat fee, or on an hourly
basis, regardless of revenue collected from the class. Attached, please find a listing of the current
programs provided by independent contractors, and the current split. All other programs offered by the
Parks and Recreation Department are staffed with City employees and are not reflected on the attached.
As you will note, fees for ice skating differ significantly from other programs. The Scott Rakow Ice Rink has
its own parameters and industry standards due to its uniqueness as a municipal -owned rink. In this case,
the department compares our fees and contractor arrangements with other privately owned ice rinks in the
general area. As an example, the schedule below reflects the costs for Private Lesson fees and instructor
payments for ice rink programs here and in private rinks.
Percentage Cost /Range of Lessons
Scott Rakow Youth Center 25% city /75% teacher *$30 per 1/2 hour
Pines Ice Arena 25% rink /75% teacher $35 - $40 per 1/2 hour
Kendall Ice Arena 25% rink /75% teacher $34.50 per Y hour
Palm Beach Skate Zone 25% rink /75% teacher $30 - $50 per 1/2 hour
Clearwater Ice Arena 20% rink/ 80% teacher $30 - $40 per 1/2 hour
Tampa Bay Skating Center 25% rink /75% teacher $30 - $40 per % hour
RDV Sportsplex (Orlando) 20% rink/ 80% teacher $30 - $40 per 1/2 hour
Most private rinks allow their contracted teachers to develop their own rates based on their experience and
qualifications since they are independent contractors. Scott Rakow Youth Center uses the rates approved
by Commission of $1 per minute (shown as $30 for 30 minutes).
While there are a number of programs that have independent contractor fee splits other than 70/30, the
Department is moving forward in converting all of the programs to a 70/30 split. This will allow us to
continue to attract qualified independent contractors, as we will be sharing fees consistent with other local
municipalities
Should you have additional questions, please contact Kevin Smith at (305) 673 -7730.
JMG /HMF /KS /JM /jg
Attachment
C: Hilda M. Fernandez, Assistant City Manager
Kevin Smith, Parks & Recreation Director
Julio Magrisso, Assistant Parks & Recreation Director
H: \Parks \Program Fees Contractor Split LTC final.doc
CURRENT INDEPENDENT CONTRACTOR FEE STRUCTURES
YOUTH SPORTS
SEASONAL (FALL, WINTER AND /OR SPRING)
Staff or Split
Referees
Intramural Baseball League (season) $25 per /game (R)
Intramural Basketball League (season) $25 per /game ®; Coach:$1,000
Soccer Clinics (season) $10 per /hr
Traveling Baseball League (monthly fee; year- round) $25 per /game (R)
Traveling Boys Soccer (year- round) $2000 /season
Traveling Girls Softball League (season) $25 per /game (R)
Volleyball - All levels (8 week series) 70/30
ADULT SPORTS
SEASONAL (FALL, WINTER AND /OR SPRING)
Staff or Split (Referees)
Adult Softball League - co -ed & advanced p /team (season) $30 per /game (R)
Adult Flag Football League (season) $30 per /game (R)
Volleyball - Fitness for Beginners (6 weeks) 70/30
Volleyball - Volleyclubs 2's Men & Women (10 weeks) 70/30
Volleyball - Volleyclubs 4's Beg. /Interm. (8 weeks; indv.) 70/30
Volleyball - Volleyclubs 4's Beg. /Interm (8 weeks; team) 70/30
Staff or Split
Seahawks Swim Team - all levels (MONTHLY) $12 -16 per /hr
Water Polo Club (monthly) 80/20*
*will change to 70/30
DANCE CLASSES
(YR— ROUND)
Staff or Split
Ballet 1 /Pre - Ballet (8 weeks) 80/20
Hip Hop /Jazzy Hip Hop - all levels (annual) _ 80/20
Children's Salsa (per class) 80/20
Supertots (8 week series) 80/20
no change recommended at this time
GYMNASTIC CLASSES
Staff or Split
Gymnastics - all levels (8 week series) 80/20*
*negotiating new split
OTHERS CL Aew.. .. a....ry�
Staff or Split
N,
Karate (monthly) 70/30
Private Percussion - Drum Lessons (monthly) 80/20*
*will change to 70/30
H: \Parks \CMB programs contract split 8 24 10.xlsx
CURRENT INDEPENDENT CONTRACTOR FEE STRUCTURES
CLASSES FOR ADULTS
Staff or Split
Adult Aerobics (monthly or per class program) 75/25*
Salsa Classes (ongoing; per class) 75/25*
Yoga (1 class /3 class /monthly series) 70/30
*will change to 70/30
ICE SKATING CLASSES
Staff or Split
Private Ice Skating Lessons - $1 per minute (year- round) _ 75/25
Basic - levels 1 -6 (4 weeks) 50/50
Beginner Hockey Learn to Skate (4 weeks) 50/50
Parent and I (7 weeks) 50/50
Power Skating Clinic (6 weeks) 50/50
Snowplow Sam - levels 1 -3 (7 weeks) 50/50
Adult Learn to Skate (7 weeks) 50/50
Jump & Spin Clinic (12 weeks) 50/50
no change recommended at this time
SUMMER CAMPS
Staff or Split
Fine Arts Painting with Acrylics Camp (one week) 80/20*
Ice Skating Camp (one week series) $3,000
Marine Biology /Nature Camp (one week series) 70/30
Sports Camp - Soccer Camp (one week series) $1,400.00
Sports Camp - Tennis Camp (one week series) $1,400.00
Sports Camp - Volleyball Camp (one week series) 70/30
Video Production (half day camp) $300.00
Water Polo (one week series) 80/20*
*will change to 70/30
CLASSES FOR SENIORS
Staff or Split
Tai Chi (year- round, except summer)(monthly) $375 per /mo.
H: \Parks \CMB programs contract split 8 24 10.xlsx