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HomeMy WebLinkAbout1998-05-12 City Council (5)BUDGET ’98- ’99 City of Palo Alto City Manager’s Report TO’:HONORABLE CITY COUNCIL ATTN:FINANCE COMMITTEE FROM:CITY MANAGER DEPARTMENT: COMMUNITY SERVICES DATE:MAY 12, 1998 CMR: 206:98 SUBJECT:REVIEW OF COMMUNITY SERVICES FEE REDUCTION PROGRAM FOR LOW-INCOME AND DISABLED RESIDENTS REPORT IN BRIEF On May 30, 1996, Council approved the implementation of a Fee Reduction Program for low- income and disabled Palo Alto residents. At that time, Council directed staff to return with an evaluation after a full year of implementation of the program. This report details the fiscal impact of the program and provides information gathered on the program during the period of September 1996 through September 1997. Based on the information gathered during the past year and on input from the Human Relations Commission, staff is making a number of recommendations to modify the program. These recommendations are meant to make Community Services’ classes and programs more accessible to low-income and disabled populations. The recommendations includes changing the low-income eligibility guidelines to the Federal Community Development Block Grant low- income guidelines, revising the disability eligibility guidelines to the Santa Clara County median income, increasing the discount on classes and programs from 50 percent to 75 percent, and eliminating the $5.00 and under exemption to allow participants to apply the discount to all specified classes and services. CMR:206:98 Page 1 of 7 RECOMMENDATION Staff recommends that Council approve modifying the Fee Reduction Program for low- income and disabled residents to: 1) change the low-income eligibility guidelines to the Federal Community Development Block Grant (CDBG) low-income guidelines; 2) revise the disability eligibility guidelines to the Santa Clara County median income (Attachment A); 3) increase the discount on classes and programs from 50 percent to 75 percent; 4) eliminate the $5.00 and under exemption; and 5) direct staff to return to Council with a review of the Fee Reduction Program during the 1999-2000 budget process. Additionally, staff will implement changes in procedures that include eliminating the photo identification requirement, increasing promotion and visibility of the program, and implement an ongoing program evaluation process. BACKGROUND On May 11, 1995, Council was apprised of a recommendation regarding p{oposed fee reductions for certain Community Services Department programs, which the Disability Awareness Task Force (DATF) and the Human Relations Commission (HRC) (CMR:235:95) brought forward. On May 30, 1996, Council approved staff’s recommendation for the implementation of a Fee Reduction Program for low-income and disabled Palo Alto residents (CMR:280:96). Cotmcil also accepted the HRC’s recommendation that the program provide a 50 percent discount fee than the 20 percent that staff recommended. Council requested that staff return with an evaluation of the program after one year of implementation. The purpose of this report is to relate the fiscal impact and provide feedback on the program, which the Community Ser4ices Department’s Office of Human Services is administering. The program was established on a trial basis beginning in September 1996. This report provides information gathered during the twelve-month period from September 1996 through September 1997. DISCUSSION Administration The Office of Human Services administers the Fee Reduction Program. Income eligibility for low-income residents is currently determined according to income guidelines established by the California State Department of Economic Opportunity/Home Assistance Program. Income eligibility based on disability is currently defined as 100 percent of the State median income. These income eligibility requirements, which the City’s Utilities Department’s Rate Assistance Program utilizes, are included in the Fee Reduction Program’s informational brochure and application (Attachment B). Applicants must provide at least one form of CMR:206:98 Page 2 of 7 current documentation for proof of residency, income, and disability (if applicable). Individuals who are approved to participate in the Fee Reduction Program are issued a photo identification card, which must be presented each time they register for a Community Services Department program or class. There is no additional fee charged if a participant is accompanied by an attendant, which is required due to a.disability. The Fee Reduction identification cards are valid for one year from the date issued. It is the responsibility of the participant to reapply for the Fee Reduction Program when the card expires. At that time, they are required to Show current documentation in order to continue to qualify for the Fee Reduction Program. The programs that currently qualify for Fee Reduction Program discounts are: ¯’ Arts & Culture classes that cost $5.00/hour or more ¯Recreation, Open Space & Sciences programs which cost $5.00/hour or more. These programs include summer camps, classes, swim lessons, middle school athletics, therapeutic classes, lap swim coupon books, and Foothills Park annual passes. The programs that do not qualify for fee reductions are: ¯Programs or classes that cost less than $5.00/hour ¯Facility rentals and room reservations ¯Golf Services ¯Library Services ¯Theatre Fees Community Outreach and Publicity Information on the Fee Reduction Program has been included in all issues of the Community Services Department Enjoy.t catalog of programs and classes since the program’s inception. In August 1996, a full page ad was placed in the Palo Alto Weekly and a press release was issued to the Palo Alto Weekly, the Daily News, and the Mercury News. Informational brochures and applications are displayed throughout Community Services Department facilities. The Office of Human Services plans to increase the promotion and visibility of the Fee Reduction Program throughout the community by targeting agencies in Palo Alto that serve low-income and disabled residents. Program Participation Of the thirty-three applications processed from September 1996 through September 1997, thirty-one applicants were approved for the Fee Reduction Program. Two program participants have renewed participation for a second year. Of the two applications that were not approved for participation, one applicant did not meet the residency requirements, and the other applicant did not meet the income eligibility requirements. Of the thirty-one applications approved, twenty-seven met the income eligibility requirements and four CMR:206:98 Page 3 of 7 applicants met the disability requirements. Arts & Culture: Eight Program participants registered for Arts & Culture programs from September 1996 through September 1997. Seven participants registered for classes, and one participant registered for use of the dance studio (coupon book = ten uses). Recreation, Open Space and Sciences: Nineteen program participants registered for recreation programs, including youth, adult, and senior programs. Programs included summer camp, adult general classes, and adult swim ticket books. Eighty registrations were taken for nineteen participants. The following chart illustrates a breakdown of Fee Reduction Program registrations in the Recreation, Open Space and Sciences Division according to age group: Recreation, Open Space and % of Registrations Sciences Programs Youth 76% Adult 20% Senior 4% Two of the nineteen participants accounted for 45 percent of all Fee Reduction Program registrations. Five of the nineteen participants accounted for 69 percent of all Fee Reduction Program registrations. Community Feedback & Program Evaluation Staff surveyed a random sample of four participants (13 percent) in the Fee Reduction Program. Of those surveyed, two qualified under the 16w-income guidelines, one qualified under the disability guidelines and one qualified under both the low-income and disability- guidelines. One of the people surveyed was in the program long enough to renew her application. Each person was asked four questions: 2. 3. 4. Did you find the application process easy? If not, why? Were you able to register for the class(es) you wanted? Have you attended more than one session? If not, why? Do you have any suggestions for how to improve the program? Responses were as follows: 1. All participants found the process easy and had no suggestions or complaints. Neither the documentation nor the photo ID was mentioned. 2. All were able to register for the class(es) they wanted and did not experience any CMR:206:98 Page 4 of 7 difficulties with the registration process. All took at least one class. Two attended more than one session. One has been in the program for one term and the other currently has health problems, but intends to register for more classes in the future. All felt that the program works well and expressed gratitude for its existence. One person suggested that the program could be better publicized. Human Services staff discussed the Fee Reduction Program with the Human Relations Commission at its January 8, 1998 and February 12, 1998 meetings. The Human Relations Commission recommended that the program be modified as follows: 1.Increase the discount from 50 percent to 75 percent 2.Adopt the 1998 CDBG Low-Income Guidelines and update the guidelines accordingly 3.Eliminate the photo ID requirement 4.Increase outreach and promotion of the program 5.Develop and implement a simple evaluation form so that program participants may provide feedback during the application process and/or during the registration process 6. Remove the exemption on programs, classes, or fees that cost less than $5.00 Staff agrees with all of the HRC’s recommendations. Regarding Recommendation two, Attachment A illustrates the CDBG income guidelines and offers several choices. Staff is recommending adopting the low-income criteria so as to recognize the comparatively high cost of living in Santa Clara County. Low-income figures are capped at 62 percent of the median; very low-income figures are capped at 50 percent of the median. The 1998 Santa Clara County median income for a family of four is $77,200. Regarding Recommendation four, staffagrees with the HRC that the Fee Reduction Program could be better publicized. Staff will increase its community outreach to ensure that publicity for the program is extended to venues that target Palo Alto’s low-income and disabled residents. Staff will continue to promote the program through the Enjoyt. catalog, through advertisements in the Palo Alto Weekly, press releases, and through distribution of the Fee Reduction Program brochure and application throughout the community in city libraries and community centers. Regarding Recommendation five, staff will develop a program evaluation form and distribute it to all applicants at the time of their application process. An evaluation form will also be made available at the time participants register for classes and programs. Staff also agrees with HRC’s Recommendation six, to remove the exemption on programs, classes, or fees that cost less than $5.00. The programs that will be most affected by CMR:206:98 Page 5 of 7 adoption of this recommendation are aquatics and Foothills Park entrances fees. Currently, swim admission is $2.00 per day. This will be reduced to 50 cents for participants. Similarly, the Foothills Park entrance fee is $2.00, and it would also be discounted to 50 cents for participants. However, staff believes that the increased accessibility of these programs to the low-income and disabled population more than offsets the lost revenue. The programs that will qualify for Fee Reduction Program discounts, should Council approve the recommendations are: ¯Arts & Culture classes ¯Recreation, Open Space & Sciences programs. These programs include summer camps, classes, swim lessons, middle school athletics, therapeutic classes, lap swim admissions, and Foothills Park entrance fees. The programs that do not qualify for fee i:eductions will continue to be: °Facility rentals and room reservations °Golf Services ¯Library Services °Theatre Admission Fees (Children’s and Community Theatre) .RESOURCE IMPACT The cost to the Community Services Department for the implementation of the Fee Reduction Program for FY 1996-97 was approximately $4,800. The annual cost to .the Community Services Department for advertising, printing, and distributing the brochure is approximately $1,400. From September 1996 through September 1997, the revenue loss to the Community Services Department was $3,381. The revenue loss for Recreation, Open Space and Sciences Division was $3,050; the revenue loss for Arts & Culture Division was $331. If Council approves the staff recommendations the revenue loss is estimated to be $6,000 to $7,000 in 1998-99. Adopting the low-income CDBG income eligibility criteria coupled with increasing outreach and publicity and elimination of the $5.00 exemption, could result in increased participation in the Fee Reduction Program. Increased participation would result in a greater fiscal impact to the City’s Community Services Department. Staff proposes that it continue to monitor participation levels and fiscal impacts, and return to Council with an evaluation of the Fee Reduction Program during the 1999-2000 budget process. POLICY IMPLICATIONS This recommendation represents an extension of prior Council policy direction to implement a program to subsidize certain Community Services Department fees for low-income and disabled participants. CMR:206:98 Page 6 of 7 ATTACHMENTS ATTACHMENT A: ATTACHMENT B: ATTACHMENT C: Community Development Block Grant (CDBG) 1998 Income Eligibility Guidelines ¯Application and Fee Schedule for Fee Reduction Program for Low-Income and Disabled Residents Memorandum from the Human Relations Commission PREPARED BY:Ilene Hertz, Manager of Child Care and Family Services PAUL THILTGEN Director of Community Services CITY MANAGER APPROVAL: Manager cc: Human Relations Commission CMR:206:98 Page 7 of 7 6~)32 INCOME LIMITS JANUARY 1998 ATTACHMENT A NUMBER QF PERSONS IN FAMILY COUNTY STANDARD 2 3 4 ’5 6 SAN DIEGO Area median: $50,800 Very low income Lower income Median income Moderate income 17800 20300 22850 25400 27450 29450 31500 33550 28450 32500 36600 40650 43900 47150 ’50400 53650 35550 40650 45700 50800 54850 58950 63000 67050 42650 48750 54850 60950 65850 70700 75600 80450 SAN FRANCISCO Very low income Area median:Lower income $68,600 Median income Moderate income SAN JOAQUIN Area median: $43,700 Very low income Lower income Median income Moderate income 24000 27450 30850 34300 37050 39800 42550 45300 32200 36800 41400 46000 49700 53350 57050 60700 48000 54900 61750 68600 74100 79600 ’85050 90550 57600 65850 74050 82300 88900 95450 102050 108650 15300 17500 19650 21850 23600 25350 27100 28850 24450 27950 31450 34950 37750 40550 43350 46150 30600 34950 39350 43700 47200 50700 54200 57700 36700 41950 47200 52450 56650 60850.-65050 69250 SAN LUIS OBISPO Very low income Area median:Lower income $46,200 Median income Moderate income 16150 18500 20800 23100 24950 26800 28650 30500 25850 29550 33250 36950 39900 42850 45850 48800 32350 36950 41600 46200 49900 53600 57300 61000 38800 44350 49900 55450 59900 64300 68750 73200 SAN MATEO Area median: $68,600 Very low income Lower income Median income Moderate income 24000 27450 30850 34300 37050 39800 42550 45300 32200 36800 41400’46000 49700 53350 57050 60700 48000 54900 61750 68600 74100 79600 85050 90550 57600 65850 74050 82300.88900 95450 102050 108650 SANTA BARBARA Very low income Area median:Lower income $51,400 Median income Moderate income 18000 20550 23150 25700 27750 29800 31850 33900 28800 32900 37000 41100 44400 47700 51000 54300 36000 41100 46250 51400 55500 59600 63750 67850 43200 49350 55550 61700 66650 71550 76500 81450 SANTA CLARA Very low income Area median: ~ Lower income $77;200 Median income Moderate income 27000 30900 34750 38600 41700 44800 47850 50950 32200 36800 41400 46000 49700 53350 57050’607"00 54050 61750 69500 77200 83400 89550 95750 101900 64850 7410.0 83400 92650 100050 107450 114900 122300 SANTA CRUZ Area median: $58,700 Very lOW income Lower income Median income Moderate income 20550 23500 26400 29350 31700 34050 36400 38750 32150 36750 41350 45900 49600 53250 56950 60600 41100 46950 52850 58700 63400 68100 72800 77500 49300 56350 63400 70450 76100 81700 87350 93000 SHASTA Area median: $37,100 Very low income Lower income Median income Moderate income 13000 14850 16700 18550 20050 21500 23000 24500 20800 23750 26700 29700 32050 34450 36800 39200 25950 29700 33400 37100 40050 43050 46000 48950 31150 35600 40050 44500 48050 51600 55200 58750 Very low income is capped at 50% of median Lower income is capped at 62% of median Disability income eligibility is based on 100% of median ATTACHMENT B Office of Human Services Cubberley Community Center 4000 Middlefield Road, Suite Palo Alto, CA 94303 OU!l p~op ~UOl~ tpmo(I : -0 to 0~ i[oo c~o City of Palo Alto Depa~nent of Community Services ATTACHMENT C May 4, 1998 TO: FROM: Office of HumanServ~ces RE: Human Relations Commission Palo Alto City Council Palo Alto Human Relations Commission FEE REDUCTION PROGRAM Background Staff provided the Human Relations Commission (HRC) with an early opportunity to review the draft report evaluating the Community Services Fee Reduction Program and provide input into its recommendations. The HRC has heard past public comment on this topic and in recent months has discussed the program in detail with staff. These discussions raised some considerable concerns about the implementation of the program and identified several areas for improvement. They included the income guidelines being used to determine eligibility, the amount of the discount and a need to better publicize and evaluate the program. We are pleased that staffhas identified similar areas for improvement in this program and accepted a number of HRC recommendations for their report. We are therefore happy to support the majority of the staff recommendations. We appreciate the efforts of staff to involve us early in the process and believe that this early dialogue proved fruitful and resulted in an improved recommendation to Council. We hope this process can serve as a model for future efforts of this type. At the same time, a number of HRC concerns are not addressed in the staff report and we respectfully request that Council consider these specific proposals for strengthening the program beyond the current staff recommendation. Intended Outcomes Our intent, as the group originally proposing this program to Council at the recommendation of the Disability Awareness Task Force, was to remove economic barriers to participation in a broad range of community services activities so that these programs are readily available to all Palo Alto citizens. Cubberley Community Center 4000 Middlefield Road, Suite T2 Palo Alto, CA 94303 415.329. 2418 415.856.8756Fax Set against this goal, to be successful, we believe the program should be: ¯Fair, equitable and consistent with other City policies; ¯Meaningful, in terms of the range of programs affected, range of people who qualify and the amount of the discount; ¯Accessibleto all who qualify, through an application process that is user- friendly; ¯Well-publicized in ways that reach the intended audience; ¯Well-evaluated based on documentation, considering whether the programmeets specific goals and objectives. There was an opinion expressed by some staffthat our expressed intent is broader than their understanding, which was simply to provide a reduced fee for certain community services programs. Recommendation: We ask Council to affirm our original intent for this program, as well as the goals stated above, so there is no future confusion. Inclusion of Programs Currently Offering Discounts to Others ¯There are other Community Services divisions and programs that offer discounts to senior citizens, youth or others, but are excluded from this program. Golf Services is one example. In the name of equity, we believe that City policy should be consistent in offering discounts. Again, we do not think it is fair, for example, to offer a golfing discount to youth and seniors with potentially unlimited incomes based on their status while excluding people with limited incomes. Recommendation: We ask Council to direct staff to conduct a comprehensive review of the Municipal Fee Schedule to determine what activities currently do not qualify for this Fee Reduction Program do offer discounts to others and add those programs in this Fee Reduction Program. In summary, we ask council to affirm our original goals and intent for this program, include programs and classes under $5.00, and include any program offering discounts based on status to the fee reduction program. In accepting these recommendations along with the staff report, we believe Council will be making a strong statement about Palo Alto’s commitment to reducing barriers to participation in City services and programs and sending a clear message about the importance of consistency in both policy and implementation. Thank you for your consideration. We look forward to continuing to work with the Council and staff to create a Fee Reduction Program of which the City of Palo Alto can be proud.