AGENDA TITLE:
Adopt a Resolution Approving Fee Increases at Lodi Lake and Acknowledging Staff Presentation on Proposed Adjustments (PRCS)
MEETING DATE:
May 21, 2025
PREPARED BY:
Emerson Yellen, Deputy Director - Parks, Recreation, and Cultural Services
RECOMMENDED ACTION:
Adopt a resolution approving fee increases at Lodi Lake and acknowledging staff presentation on proposed adjustments.
BACKGROUND INFORMATION:
On September 4, 2019, the City Council adopted a formal Cost Recovery Policy, establishing a framework to ensure program fees are based on the level of individual versus community benefit. The policy utilizes a nationally recognized tiered pricing structure (pyramid model) and guides the Department in calculating appropriate cost recovery levels. This policy was reaffirmed through adoption of the PRCS Master Fees and Charges on March 16, 2022, which authorized the Department to review and recommend fee adjustments annually.
The policy clearly states in Section K:
“Recreation and Community Center Programs
The goal is to recover, on average, 40% of program costs from participants. Individual programs may be fully self-supporting while other programs may have a nominal cost recovery ratio.”
Currently, the annual cost to operate Lodi Lake is approximately $1,121,146, while revenue generated from entrance, rental, and boat launch fees is only $227,903, resulting in a cost recovery rate of 20% - well below the policy’s target of 40%. This gap places an increasing burden on the General Fund and underscores the need for updated fees to better reflect the cost of providing services.
To move toward compliance with the Council’s adopted cost recovery goals, staff recommends the following fee increases, effective July 1, 2025:
Proposed Entry and Boat Launch Fees
|
|
Current Rates |
Proposed Rates |
|
Daily Entry Fee |
$5 |
$8 (resident) $10 (NR) |
|
Boat Launch Fee - One time* |
$13 |
$13 |
|
Annual Boat Launch Fee |
$100 |
$130 (resident) $156 (NR) |
|
Entry fee - Annual |
$50 |
$80 (resident) $100 (NR) |
|
Beach entry fee |
$3 |
$3 (resident $5 (NR) |
*The day-use boat launch fee is set by California Department of Parks and Recreation, Division of Boating and Waterways as a condition of the Lodi Lake Boat Launching Facility Grant and cannot be adjusted at this time.
Proposed Rental fees:
|
|
Current Resident Rate |
Current Non-Resident Rate |
Proposed Resident Rate |
Propose Non-Resident Rate |
% Increase (Average) |
|
Youth Area* |
$300 |
$330 |
$375 |
$450 |
31% |
|
Hughes Beach* |
$80 |
$135 |
$165 |
$198 |
76% |
|
Kiwanis |
$120 |
$132 |
$225 |
$270 |
96% |
|
Parson’s Point* |
$160 |
$176 |
$175 |
$210 |
14% |
|
Rotary Area* |
$160 |
$176 |
$175 |
$210 |
14% |
|
Beach Shelter |
$100 |
$110 |
$150 |
$180 |
57% |
|
CA & AA Picnic Areas |
New |
New |
$40 |
$48 |
New Revenue |
|
Discovery Center Patio |
New |
New |
$40 |
$48 |
New Revenue |
*Under the current rental structure, there are two different rental rates for these sites; one for renting the pavilion/picnic shelter and one for renting the whole area. Staff is proposing to change the rental structure to a single rental rate for the whole area at these sites.
Costs associated with staffing, materials, insurance, utilities, and maintenance at Lodi Lake continue to rise. Between 2020 and 2024, the Consumer Price Index (CPI) for All Urban Consumers in the San Francisco-Oakland-Hayward region increased by an average of approximately 4.6% annually, with particularly high inflation in 2021 (4.2%), 2022 (5.3%), and 2023 (3.9%) (U.S. Bureau of Labor Statistics, CPI Regional Data). To ensure that fees remain aligned with the true cost of providing services, staff recommends implementing annual CPI-based fee adjustments, not to exceed 10% per year. This approach will allow for gradual increases that reflect inflation while avoiding steep, irregular adjustments. Staff proposes reassessing this CPI increase to fees policy in five years to evaluate its effectiveness and community impact.
In comparison to similar regional facilities, Lodi Lake’s current entry fees are approximately 60% lower, and its boat launch fees are 20% lower, then those of peer agencies. Updating fees will better align Lodi Lake with market norms while continuing to offer residents an affordable and high-quality recreation experience. The proposed changes will not exceed the cost to provide the service, and instead, aims to meet Council’s adopted Cost Recovery goals and balance cost recovery with equitable access and service sustainability.
In addition to addressing ongoing operating costs, the City has made substantial investments in Lodi Lake’s long-term viability. Since 2020, more than $4.29 million has been invested in capital improvements including:
Lodi Lake Fire Mitigation & Tree Maintenance - $191,861
Lodi Lake South Side Improvements - $2,984,467
Nature Area Improvements - $70,306
Lodi Lake Erosion - Riverbank - $1,049,431
Looking ahead, an additional $8 million in capital projects is planned to address aging infrastructure and environmental resilience including:
Auto Pay Station Installation - $65,000
Security Improvements (security cameras and Partners vehicle storage) - $100,000
Rotary Area Improvements - $2,700,000
Beach Roofing Improvements - $650,000
Office & Shop Roofing Improvements - $235,000
Wading Pool Renovations - $600,000
Retaining Wall Renovations (year 28/29) - $3,075,000
River Bank Rip Rap (year 28/29) - $570,000
While these capital needs are not the primary basis for this fee adjustment, they reinforce the importance of a sustainable funding model to support Lodi Lake’s future.
Therefore, the Parks, Recreation and Cultural Services (PRCS) Department recommends adjustments to Lodi Lake user and rental fees along with implementing annual CPI-based adjustments in an amount not to exceed 10% per year to ensure fees remain aligned with true cost of services, the City Council’s adopted cost recovery goals and support the long-term fiscal sustainability of the facility.
STRATEGIC VISION:
4A. Financial Sustainability: Implement policies that ensure long-term financial health through cost recovery and efficient resource allocation.
6B. Expand, develop, and maintain Lodi Lake to meet or exceed industry standards.
FISCAL IMPACT:
Fee increases shall improve cost recovery for operations and maintenance and shall ensure Lodi Lake’s sustainability and access for all. Fee increases could result in an anticipated increase of ~$148,000 annually.