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04.03.23 PRAB Study Session Packet STUDY SESSION AGENDA All agenda times are approximate. I. Approval of Agenda (2 minutes) II. Items for Discussion/Information A. Financial Overview (10 minutes) B. Fee Policy Development (70 minutes) C. Break (10 minutes) D. BPR Capital Investment Strategy (CIS): 2023-2029 (90 minutes) III. Next Board Meeting: 6:00 p.m. April 24, 2023, hybrid IV. Adjourn Parks & Recreation Advisory Board Hybrid Study Session Meeting 6:00 p.m., April 3, 2023 Boulder Parks & Recreation Advisory Board Members 2023 Andrew Bernstein Charles Brock Elliott Hood Anita Speirs Jason Unger Anna Segur Sarah van der Star Mission Statement BPRD will promote the health and well- being of the entire Boulder community by collaboratively providing high-quality parks, facilities and programs. Vision Statement We envision a community where every member’s health and well- being is founded on unparalleled parks, facilities and programs. Goals of the Master Plan 1. Community Health and Wellness 2. Taking Care of What We Have 3. Financial Sustainability 4. Building Community 5. Youth Engagement 6. Organizational Readiness STUDY SESSION DATE: April 3, 2023 6:00 p.m.-8:30 p.m. TO: Parks and Recreation Advisory Board FROM: Alison Rhodes, Director of Parks and Recreation Scott Schuttenberg, Deputy Director Bryan Beary, Senior Manager, Community Building and Partnerships Mark Davison, Senior Manager, Planning Regina Elsner, Senior Manager, Natural Resources Jackson Hite, Senior Manager, Business Services Stacie Hoffmann, Senior Budget Analyst Megann Lohman, Senior Manager, Recreation Stephanie Munro, Senior Manager, Regional Facilities Deryn Wagner, Senior Landscape Architect Dennis Warrington, Senior Manager, Urban Parks SUBJECT: Study Session: BPR Fee Policy Development and BPR Capital Investment Strategy (CIS): 2023-2029 As part of the City Charter, the PRAB shall “review the city manager’s proposed annual budget relating to parks and recreation matters and submit its recommendations concerning that budget to the council” and “to approve or disapprove expenditures or appropriations from the permanent park and recreation fund and forward such recommendations to the city council”. Following the introduction of BPAR’s 2024 Budget Strategy at the March business meeting, this study session intends to provide more background on the department’s finances and spending. As staff develop the operating and capital budgets, the PRAB’s input is critical to ensuring the department’s budget submission aligns with community priorities and values. The first half of the study session will focus on the Fee Policy Update (guiding how and when BPR charges fees for services) and the second half of the meeting will focus on the BPR Capital Investment Strategy (CIS) which will guide the staff capacity, budget development, and community outreach and engagement strategies for Capital Investment Projects from 2023 through 2029. Fee Policy Development Through the 2024 budget development process, BPR intends to develop a fee policy to more clearly and consistently guide when and where fees are charged for services comprehensively across the department. At the March 20, 2023 PRAB meeting, staff introduced the Program Types where set policy does exist and those program types where a fee policy does not exist. The purpose of the study session will be to gather the PRAB’s input on the types of fees identified by staff: • Program Types – There were 7 types of programs introduced at the March PRAB meeting including: Facility Access, Golf Course, Recreation Services, Rentals & Access, Commercial Use, Facilitated Programming, and Grants, Philanthropy and Donations. The PRAB will be asked to confirm that the type identified by staff is accurate. Each program type will include a definition and various examples of existing programming. • Benefit Level Associated with Program – Staff will provide the current benefit level associated with each of these program types. The PRAB’s input will inform where more analysis and work is appropriate. • Current Cost Recovery – Staff will provide a current cost recovery target associated with each program type. Due to the lack of policy, some of the current ranges will be rather broad and may include overlap with other types of programs. • Proposed Cost Recovery – Staff will seek PRAB’s input and guidance on how much subsidy should be provided to each program type, or in other words, what the cost recovery target should be by each different type based on who benefits. • Policy Questions for the PRAB – Certain program types will have additional policy questions where the PRAB will be asked to provide their input and weigh in on questions that staff will have for the PRAB. At the meeting, staff will be able to share the proposed program types, examples and definitions, the associated benefit level, the current cost recovery for these types of programs, and any policy questions where PRAB’s guidance would be helpful. To help inform these conversations, staff will share a benchmarking exercise of other public agencies’ fee policies to help provide context and other examples of how fee policies base their cost recovery targets on the various types of programs. In April, staff will return with PRAB’s input from the April Study Session to share what staff heard and initial drafts. In May, the City Council will hear more about the proposed structure of the fee policy and be asked for their input on the program types, benefit level associated with each program, current cost recovery, proposed cost recovery, and policy questions that will provide more specific guidance than what is currently provided in the BPR Master Plan. In May, the department will share recommendations for 2024 service levels and/or fees based upon April PRAB input. Additionally, the staff will ask the PRAB to recommend a Fee Policy structure which will help guide 2024 budget development and future year’s fee development. The PRAB’s role on fee policy is advisory and the board’s input is valued and respected as the department’s budget is reviewed with the city’s Executive Budget Team, different boards and commissions and ultimately, City Council. Staff will also utilize the city’s Racial Equity Instrument to evaluate the impacts of the draft fee policy, and are working to coordinate other community input (such as from the Community Connectors in Residence). BPR Capital Investment Strategy (CIS): 2023-2029 Overview of Capital Investment Approach The purpose of this memo is to provide information on the process for the upcoming Study Session on the Boulder Parks and Recreation (BPR) Capital Investment Strategy (CIS). The CIS provides a framework to support park design and construction as well as asset management recommendations for the enhancement of Boulder’s system of parks and facilities. This practice is not new to BPR, the last plan was completed in February 2016. This latest update will focus on 2023 to 2029 and integrates the policy direction from the BPR Master Plan approved by PRAB and Council in 2022. The CIS will provide an updated workplan for the department and will be used to develop the 2024-2029 Capital Improvement Plan (CIP) budget. There are three main areas of focus for this work plan: CIS Framework The CIS for BPR is based on community needs identified through the recent 2022 Master Plan, the maturing Asset Management Program, and planning efforts covering System and Park Plans. The structure of the CIS has three focus areas:  to identify a long-term capital work plan and aligned investment strategy through 2029,  provide detail around capital actions to be taken by the department over the next two years, 2023 to 2024, and  identify unfunded and underfunded projects that can improve services across the system Identifying in more detail the work needed for the 2023-24 projects will enable the Department to prepare robust project management plans with associated engagement planning as well as updated cost estimates. 2023 funding is already appropriated from 2023-28 CIP that was approved by PRAB and City Council in 2022, while the 2024 appropriation will occur as part of the 2024-2029 CIP budget development that PRAB will recommend in June 2023, and City Council will adopt in October 2023. As we look out to 2025-29, we will scope projects with the development of charters. The charters include a basic scope, schedule, rough cost estimates and project purpose. Unfunded and underfunded projects that are identified but don’t fall within the seven year timeframe will have a basic scope and preliminary cost estimate with no schedule identified at this point. As we further develop our asset management system and update our current replacement value (CRV), we will be able to better identify a deferred list that describes where we need greater capital investment to retain or expand service levels for the community. Integrating with Policy Guidance from the 2022 Master Plan This comprehensive approach to BPR’s capital investment strategy is founded on implementing the key themes of the BPR Master Plan described in the graphic on the left. All six themes provide guidance to the CIS. Of critical importance to maintaining our assets is Taking Care of What We Have. We also look to the themes of Community Health and Wellness, and Youth Engagement & Activity in order to ensure we are providing the best facilities, amenities, and infrastructure to retain or expand upon our service levels. In addition, we will consider the most efficient, sustainable, and robust approach to managing our assets across the system and implement the policy as it applies in the Financial Sustainability and Organizational Readiness themes. As we look to improve levels of service we will also continue in our approach to Building Community & Relationships. As PRAB and City Council agreed in developing the plan, the concepts of equity (considering who benefits and who is impacted by our work) and sustainability and resilience (understanding how we are preparing for and mitigating against climate change) are woven through every aspect of the work. In addition to being guided by the themes from a policy perspective, the master plan also provides clear direction on community identified needs for facilities, parks, and major asset categories across the system including courts, athletic fields, aquatics, parking and accessibility. Balancing the community’s desires with BPR’s financial reality requires that the department prioritize what can be accomplished over the next six years. The following two graphics summarize the major CIP projects that BPR will need to work on and includes the three budgeting scenarios in which future projects and programs are prioritized. Following city practice, the scenarios are organized around possible resources: in the Fiscally Constrained scenario, resources are stagnant. In the Action and Vision levels, services can increase with additional funding. BPR’s CIS is almost entirely composed of Fiscally Constrained projects. Fig 1. Table highlighting overarching guidance for park investment in the BPR capital program Fig 2. Table highlighting overarching guidance for facility investment in the BPR capital program assets, in this case trees, and work events for managing them Study Session The CIS presentation and discussion is organized around sections that enable PRAB to consider: 1) Capital planning process and PRAB’s role 2) Ongoing process improvements and updates to the 2023 CIP 3) Proposed 2024 CIS projects to be appropriated with 2024 – 2029 CIP 4) Discuss alignment with the BPR master plan for 2025-29 projects and prioritization of unfunded needs Next steps: The schedule for developing the CIS is as follows: 2023 April: Study session with PRAB for input on 2023-2029 CIS April: PRAB Review CIS Plan for 2023-2029 April: 2024 CIP preview of 2023 May: 2024 CIP Discussion for 2024-2029 June: 2023 CIP Recommendation for 2024-2029 November: PRAB update for 2024-2030 CIS