P&R 03-03-94~ITY OF CUPERTINO, STATE OF CALIFORNIA
10300 Torre Avenue, Cupertino, CA 95014
Telephone (408) 777-3200
MINUTES OF THE REGULAR MEETING
OF THE
PARKS AND RECREATION COMMISSION
Council Chambers
March 3, 1994
CALL TO ORDER
1. Regular meeting of the Parks and Recreation Commission called to order at 7:00 p.m.
SALUTE TO THE FLAG
ROLL CALL
3. Commissioners present:
Commissioners absent:
Staff present:
Lohmiller, Hendrickson, Hopkins, Quinlan, Buhler
Stephen Dowling, Director of Parks and Recreation
Linda Lagergren, Recording Secretary
INTRODUCTIONS
4. Director welcomed new commissioner, Luis Buhler, to the Commission.
ELECTIONS
5. Commissioner Quinlan made a motion to nominate Commissioner Hendrickson for Chairperson for
1994-1995. Commissioner Hopkins seconded the nomination. All in favor.
6. Commissioner Lohmiller made a motion to nominate Commissioner Quinlan for Vice-Chairperson for
1994-1995. Commissioner Hopkins seconded the nomination. All in favor.
ORAL COMMUNICATIONS
7. None
OLD BUSINESS
8. None
NEW BUSINESS
Director stated, "The issue before the Commission this evening is to review, discuss and form a
recommendation to City Council regarding the rate structure at the Cupertino Sports Center. We are
nearing the end of a two year management contract and at this point we have been very pleased with
the programs and the level of services that have been provided there, but the financial situation
continues to be a challenge. Staff went to City Council several weeks ago to seek direction for the
upcoming negotiations and one of the positions that Council took was to make it clear their
commitment to keep the facility and the current services operating and continuing. They want to
continue providing the facility essentially as it has been operating. We have learned that what we have
PRC #150
Approved
4/7/94
Call to order
Flag Salute
Roll Call
Election of
Chair &
Vice-Chair
Cupertino
Sports
Center
rate
there is a hybrid. As a hybrid, it is more than a typical municipal center, but by the same token it is less
than many of the private racquet clubs. When it comes to the market place we are competing with the
private clubs. The challenge becomes how do you set the rates. We think that the existing rate structure
is essentially viable and is competitive for our product. But there are a few glitches in it that we are
recommending be adjusted at this time. (Director showed an overhead slide that showed the rate
structures) Fifty-percent of the passholders come in under the annual couples pass. Any two people can
buy a couples pass together. One of the things that is in this recommendation is to change that
approach. We are suggesting that a single annual pass be reduced from $360 to $350, but that there not
be a break for a couple annual pass. Another recommendation has to do with the two-tier resident/non-
resident rate structure. There is a decided distinction between the current resident rate and the current
non-resident rate. We are suggesting for monthly and annual passes that the two-tier system be
eliminated. Fewer than 17% of the passes sold have been to non-residents. We realize that that is
contrary to public policy, but in this case, we feel that it is necessary for us to make this change. Other
changes that are being proposed (items #2 & #3) are to offer a junior rate at $240 (17 years and
younger) and a senior rate at $350 (62 years and older). (Item #4) Currently the Cupertino Tennis Club
is charged $7.00/hour for their C.T.C. sponsored activities. We are suggesting that rate move to
$10.00/hour. (Item #5) City Council has already made the decision that C.T.C. and U.S.T.A. leagues
participating at the Sports Center must purchase an annual pass. In return for this, we are
recommending that by purchasing an annual pass, a non-resident be allowed to join C.T.C. without
impacting the Club's residency requirement for co-sponsorship. (Item #6) An annual passholder may
purchase one block of ten guest passes per year for $60.00. We recognize that passholders like the
privilege of bringing guests. We want them to be able to continue to do that. Some of the programs in
the past turn guests into permanent guests. It was economically viable to remain a guest for a full
year." Director added, We are keeping the distinction of the resident/non-resident fee for the day-use
pass." Director turned it back to the Chair.
Commissioner Lohmiller asked, "How does the senior rate affect this?"
Director Dowling replied, "That's why the number was set at 62. Our Senior Center takes applications
at age 50, but we feel that 62 is more consistent with what others are doing. And in terms of numbers,
we don't see it as a detriment to the bottom line."
Commissioner Buhler asked, "What is the current cost to Cupertino residents for maintaining this
Center? What are they subsidizing over and above this rate structure.
Director Dowling replied, "Currently the General Fund is not subsidizing the day-to-day operation. The
General Fund is subsidizing the debt service."
Commissioner Quinlan asked, "Would you identify the day-to-day operation?"
Director Dowling stated, "The day-to-day operation is all of the programs, services, and expenditures
such as utilities and staffing. All of those day-to-day operational costs are the burden of the contractor.
There is some deferred maintenance that the City does have responsibility for, in terms of court
resurfacing and additional lighting. But the operational stuff as it relates to programs is born by the
contractor. The big ticket is the debt service and that number is about $900,000.00 per year to pay off
the acquisition cost. I can't give you a per resident cost, but that is what it is costing the City to own
the property. But keep in mind that property was not purchased just for tennis, nor for just racquetball,
nor fitness. It was purchased as an extension of Memorial Park."
Commissioner Quinlan added, "As I understand it, in addition to or included in that figure, we also
have about $100,000 deficit each year because of the building itself. Is that correct?"
Page 2
Sports
Center
rate
(cont'd)
Director replied, "The operator does. The operator's burden this year was somewhere between $68,000
and $100,000 deficit. We believe that if we were providing a traditional tennis court reservation and
lesson program, we would have an entirely different rate structure. The rates would be considerably
less, but so would our overhead. We wouldn't need the 15,000 square foot building. If that is what we
had, we could certainly move closer to a self-supporting or revenue producing situation. We think with
this rate structure there will still be some subsidy out of the General Fund, based upon recent
experience. If given the fact that we still have the building in operation, if we do these rate changes and
we have at least a 15% growth in all areas, including lessons and reservations, will get us close to
breaking even next year."
Commissioner Hopkins added, "You are hoping for a non-residential growth, is that tree?" Director
added, "That is correct; that is the target that must be tapped."
Chairman Hendrickson opened it up to the audience for comment.
Ed Hirschfield, (734 Stendahl Lane) member of the Cupertino Tennis Club board. "We feel that the
adjustments that are being recommended are fair. We support the even-handed approach to non-
residents. The only restriction we are having some difficulty with and would like to see one aspect
modified slightly is the requirement that people [U.S.T.A. players] be annual passholders. We think it
would be beneficial for you to allow there to be monthly passholders on a team. We would like to
encourage the City to consider allowing teams with some members of the team with monthly passes to
also qualify for playing at the Sports Center. We think that not having a different non-resident fee
benefits the residents because it brings more income to the Sports Center."
Commissioner Lohmiller asked Ed Hirschfield, "What percentage of the CTC members are
passholders now?"
Ed Hirschfield replied, "I believe that our present population of CTC members is 600 and the
percentage that are passholders is in excess of 20%. Is that correct?" Director Dowling stated he
believed it was closer to 10%0.
Rich Haggerty, resident of Cupertino and member of Cupertino Tennis Club. "Staff's
recommendations overall are very good. The percentages of couples is quite high. Many of those
couples do not live in Cupertino. The primary mailing list goes to the Cupertino address but the partner
is not a Cupertino resident. This facility cannot be supported alone by Cupertino residents. There is a
feeling among some that the Tennis Club is not doing enough, that we aren't supporting it to the full
extent that we should. I wish to contradict that heavily. There would be heck of a lot less activity there
and a lot less visitors there if it wasn't for the C.T.C. I would like to encourage you to allow these
monthly passholders to play on USTA teams at the Sports Center. The day pass rate going from $7.00
to $10.00 is a very fair amount. I don't have a problem with that at all. Many of the passholders are not
going to be bringing in as many guests because they can only buy one block of passes."
Candace Walsh, President of the C.T.C.. "I have written two letters recently. My letter of February 4,
1994 to Dick Lohmiller had to do with the 51% variance. (Item #5 of the additional modifications).
You are limiting USTA adult league members/players from Cupertino to passholders at the Sports
Center. A situation exists now that you have someone willing to buy an annual pass to be able to play
on a USTA team, but can't play on the USTA team because that person cannot join the Cupertino
Tennis Club because at the time we have more than 49% of our membership being non-residents. What
we would like to propose is that you allow anybody buying a pass to be counted in the 51% residency
requirement for the Tennis Club to have a Cupertino address. In other words that annual passholder is
buying the address at the Sports Center for purposes of counting our 49%/51% requirements. My letter
of Feb. 25 requests that you consider allowing month-to-month passholders for U.S.T.A. players."
Page 3
Sports
Center
rate
structure
cont'd)
Ed
Hirschfield
Rich
Haggerty
Candace
Walsh
Chairman Hendrickson brought the discussion back to the Commission.
Commissioner Quinlan stated, "I concur with Council on item #5. Under the circumstances, I think it is
a very sound decision. If the Council should determine that they would want to change that in any way,
in response to the Cupertino Tennis Club, I would suggest that if they allow monthly fees that it be for
residents only. I have a concern still about the tax payers in this community subsidizing people playing
tennis from other cities that are playing tennis here. I understand that this facility is somewhat sub-
regional in context. I understand that if we would do a closer job of accounting by separating part of
the building, that there is a good possibility that the fees being proposed would cover the cost not only
of the day-to-day operation but also resurfacing the courts and replacement. If we can't get some kind
of accounting on this that would separate that out, then I would recommend that we keep the
differential in fees."
Commissioner Lohmiller said, "The Cupertino Sports Center was purchased to preserve the property,
but in reality it is a tennis center and it is a community tennis center. It didn't operate or function well
as a private club and it sure isn't going to function as we have it structured now. As long as the
building is in the equation, I don't think there is a chance of this facility working whatever fee structure
you come up with. We have too much there to expect our local taxpaying citizens to pay what they
have to pay to handle those that like the amenities. Since we are subsidizing it, I don't think it is fair
for Cupertino taxpayers to have to subsidize non-residents.
(Record will show that Commissioner Buhler will abstain from voting on this issue because he is a
passholder at the Cupertino Sports Center and this may be a potential conflict of interest.)
Commissioner Hopkins stated, "I support the rates being the same for residents and non-residents
because we are running a deficit now of $60,000 to $100,000 and if equalizing the rates would bring in
revenue then the residents would be subsidizing the facility for a lesser amount so I would like to see
this tried."
Commissioner Quinlan moved that as long as Cupertino tax payers are subsidizing operational expense
of the tennis facility, that there be a two-tier system, with non-residents paying a higher rate.
Commissioner Lohmiiler seconded the motion.
Commissioner Hopkins added, "In terms of rates, I think they should be the same. I like Commissioner
Quinlan's idea about giving preferential treatment to Cupertino residents.
Vote: 3 in favor, 1 against, 1 abstaining. Motion carried.
Hendrickson - aye, Quinlan - aye, Lohmiller - aye, Hopkins - nay, Buhler - abstaining
Commissioner Lohmiller moved that we accept the recommendations for the additional modifications
as presented by staff, with the exception of item # 1. Commissioner Quinlan seconded the motion.
Vote: 4 in favor, 1 abstaining. Motion carried.
Lohmiller - aye, Quinlan - aye, Lohmiller - aye, Hopkins - aye, Buhler - abstaining
10. Commissioner Quinlan because of a potentital conflict of interest is abstaining from discussion and
voting on agenda item #10 because he is a board member of the Y.M.C.A.
Director Dowling stated, "The issue before the Commission this evening is not to come to a decision
whether or not to install a ropes challenge course facility in a public park, rather the issue simply is to
hear the concept, to identify what some of the potential issues are and to direct staff to either pursue
developing the concept with the other two jurisdictions or to direct staff not to proceed."
Page 4
Sports Center
rate structure
(cont'd)
Motion
Motion
Ropes Course
concept in a
city park
Liz Gallegos, Executive Director of the Northwest Y.M.C.A., presented the Ropes Course concept to
the Commission. Rich Knapp and Larry Curb (School District representatives) presented information
of the Ropes Course concept.
Director Dowling said, "The big concern for all of the jurisdictions involved is liability exposure. With
regard to the City of Cupertino, we are a self-insured City and we would want to investigate with due
caution this concept. Our Risk Managers are concerned about not just the supervised courses, but they
also have concerns about what happens when instruction is not there. That is something that needs to
be explored. Our initial response from our Risk Managers is that they are not interested in sharing the
risk, they want to transfer the risk. The second issue is where do we do it. Linda Vista Park because of
it's natural setting lends itself very well to this kind of program, so we would have to analyze the
neighborhood impacts of such a program."
Commissioner Lohmiller stated, "I think it is an excellent idea. I think it adds prestige to our
community and just enhances our area. I like the idea of the partnership between the Y.M.C.A., the
School Districts and the City. I think it is a wonderful addition to consider."
Iva Hajda, 10312 Terry Way, Cupertino, DeAnza College student and former Monta Vista High school
student spoke in favor of the Ropes Course.
There was consensus by the Commission to pursue the study of a Rope Course concept in a City park.
MINUTES OF PREVIOUS MEETING
11. Commissioner Lohmiller moved and Commissioner Hopkins seconded a motion to approve the
minutes of the January 6, 1994 Parks and Recreation Commission meeting. (Hopkins, Quinlan,
Lohmiller, Hendrickson in favor. Buhler abstained) Motion passed.
WRITTEN COMMUNICATIONS
12. Letters from Candace M. Walsh, President of Cupertino Tennis Club. A letter was also included in the
Commissioners packets from resident Pat Ulicki, regarding Deer Hollow Farm.
MONTHLY REPORTS
13. Director had nothing to add to the written Recreation program monthly report.
14. Commissioner Lohmiller reported on the Fremont Older Task Force meetings.
MISCELLANEOUS
12. There were no legislative updates.
13. Chairman Hendrickson reported on the Mayors luncheon.
14. Director informed Commission of the unfortunate health situation of Code Enforcement Joe Silva. He
also reported that clerk-typist Dottle Hadfield is enjoying her retirement and Rebecca Lennon has been
chosen for her replacement.
Page 5
Rope Course
(¢onfd)
ADJOURNMENT
15. Commissioner Buhler moved and Commissioner Quinlan seconded the motion to adjourn at 9:05 p.m.
to the regularly scheduled meeting of Parks and Recreation Commission on April 7, 1994, 7:00 p.m.,
Council Chambers.
Respectfully submitted,
Linda M. Lagergren, R~
ATTEST:
City Clerk
APPROVED
Chairperson
Page 6
Motion