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HomeMy WebLinkAboutCity Council Agenda Item No. 8Recommendations Confirm the Commercial Annual Lake Use Pass fees contained in Resolution No. 2010-039, as adopted in June 2010. 1 • 0 - 1 • The Cit expends over $2-million per y ear to maintain the Lake for g eneral maintenance, operation of aeration s Lake Patrol, and supplemental water. The Cit annual revenue from Lake Use Fees received from boaters is approximatel $350,000. Residents of the Cit fund the majorit of the remainin cost to maintain the Lake. Direct beneficiaries from the Cit efforts to maintain the Lake are recreational users who actuall utilize the Lake for boatin water-skiin wakeboardin and fishin Businesses that depend on the Lake, such as boat launches, boat dealers, and boat rental companies are also direct beneficiaries. All these beneficiaries contribute to the cost of maintenance of the Lake b either sellin Lake Use Passes on behalf of the Cit or pa for Lake Use Passes. The Cit sells both dail and annual lake use passes. The annual lake use passes are further differentiated into cate such as motorized or non-motorized vessel, resident, non-resident, and commercial. Attached is a "Summar of Lake Use Pass Re & Fees" that describes the various lake use passes offered for sale b the Cit and the current fees. The "All Da Jet Ski" personal watercraft rental compan has re the Cit lower their fees for the purchase of Commercial Annual Lake Use Passes for their Pa 1 Commercial Lake Use Fees Ma 22, 2012 Pa 2 rental vessels. Below are the Cit fees for Commercial Passes per Resolution 2010-039. Commercial Pass Resident Business $350.00 per y ear Non-Resident Business $500-00 per y ear The All Da Jet Ski Compan business address is located outside the Cit All Da Jet Ski is not a traditional "bricks & mortar" storefront, with the majorit sales occurrin on the shoreline of Lake Elsinore. Therefore, Cit Staff char All Da Jet Ski the "Resident Business" rate for the Commercial Annual Lake Use Pass of $350 per vessel. All Da Jet Ski has operated from the followin boat launch facilities this y ear. • Elsinore West Marina (Discontinued Operations • Roadrunner RV Park • The Outhouse • Seaport Boat Launch/Elm Grove Beach B char a flat fee for the Commercial Annual Lake Use Pass, it allows the rented vessels to be moved between the various rental sites. It is in the Cit best interest to have boats and personal watercraft available for rental for visitors to Lake Elsinore. Cit Staff welcomes the investment and services provided b All Da Jet Ski. The Cit has also made a substantial investment in the Lake for the benefit of residents, Lake Users and to provide opportunities for business to make a profit. All Da Jet Ski is char a one-time Commercial Annual Lake Use Fee of $350 per vessel. On a y ear round basis, this e to about $1 per da However, rentin boats on Lake Elsinore is a seasonal venture, with the peak season be around Memorial Da and endin after Labor Da Visitation is also the hi on Frida Saturda Sunda and Holida durin the peak season. Cit Staff estimates there are fift (50 peak rental da per y ear. If All Da Jet Ski had to cover the cost for the Commercial Annual Lake Use Pass over just 50 peak season da the dail cost is $7 per da In contrast, the g eneral boatin public pa a Dail Lake Use Fee of $15 per da plus a $10 launch fee. The hourl rental rate b All Da Jet Ski is $85 for the first hour and $69 for each additional hour. If the vessel is rented for onl six (6) hours per da this e to a total rental income of $430 per da As an alternative to purchasin a Commercial Annual Lake Use Pass for $350 per y ear, All Da Jet Ski ma purchase a Dail Lake Use Pass for $15 per da for their rental vessels, sub to operatin from a preapproved facilit This alternative Pa 2 Commercial Lake Use Fees Ma 22, 2012 Pa 3 provides All Da Jet Ski with the flexibilit to increase the number of rental vessels in operation on an particular da at the same dail rate char to the public. The Cit has various fees that are consistent and appl to all businesses e An exception for one ma lead to an endless re for exceptions. The fee structure adopted under Resolution 2010-039 (June 2010) is reasonable and reco the difference between commercial and non-commercial use. The adopted Fee Schedule is also structured to encoura local businesses b offerin a discount fee. Staff recommends the Cit Council reaffirm the commercial fees contained in Resolution 2010-039 and that All Da Jet Ski be char the Resident Business rate for a Commercial Annual Lake Use Pass. Fiscal Impact All Da Jet Ski is re to pa the Non-Commercial Resident Annual Lake Use Fee of $150 per vessel, instead of the Commercial fee of $350.00, for fourteen (14) vessels. This represents a potential loss in revenue to the Cit of $2,800. Prepared b Pat Kilro Director Lake, Parks, and Recreation Department Approved b Tom Evans, Interim Cit Mana Attachments: • Resolution No. 2010-039 — Schedule of Lake Use Fees • Summar of Lake Use Pass Re & Fees • Garret Brown, All Da Jet Ski, Email Dated Ma 14, 2012 • Webpa b All Da Jet Ski Pa 3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE CALIFORNIA, APPROVING ADJUSTMENTS TO SCHEDULE OF LAKEUSE FEES. WHEREAS, the Cit of Lake Elsinore is re b the State of California to maintain the Lake fior public park and recreation purposes in perpetuit and WHEREAS, the Cit Council of the Cit of Lake Elsinore is desirous ot' providin ade services for operatin and maintainin Lake Elsinore t'Or the benefit of the boatin public- and WHEREASI the Cit operation and nitaintenance costs for the Lake exceeds the annual revenues from Lake use and WHEREAS, it is essential for boaters to pa their fifir share of the costs to provide services so that the Lake can remain available as a recreational resMirce.-' and WHEREAS, the fives collected pursuant to this resolution shall be used or operatin and maintainin the Lake for use b the pubfic; and WHEREAS, the Cit Council does now desire to niodit' the use fees fir the Lake b adoptin the Schedule of Fees as set forth herein. $I NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. Schedule of Fees for Dail Lake Use Pass. 'I'he followin fee shall be char to Cit residents and non-residents for the use of Lake Elsinore for purchase of a Dail Lake Use Pass: Dail Lake Use Pass $15.00 per da SECTION 2. Schedule of Fees for Annual Pass and ( ommerela] Pt,_ Ns,,_ followin fees shall be char to Cit residents and non-residents Elsinore for purchase of an Annual Pass and Con-imercial Pass: 1br the use of Lake Annual Pass (Standard & Lake Front) Resident $150.00 per y ear per vessel Pa 4 CITY COUNCIL RESOLUTION NO. 2010-039 Pa 2 of 3 F Non-Motorized Non-Resident Senior Citizen Discount $')25.00 per y ear per vessel $40.00 per y ear per vessel $50.00 per y ear per vessel 1 0% on Annual Pass onl Commerel'al Pass Resident Business S-350.00 per y ear Non-Resident Business $500.00 per y ear SECTION 3. Effective Date. The Cit Clerk of the Cit shall certif the adoption of this Resolution. Section I shall be in full force and effect as of Jul 1, 2010. Section 2 shall be in full force and effect as of Januar 1, 201 PASSED, APPROVED AND ADOPTED this22 nd da 0f . Line, 2 0 10. t . Melissa A. Melendez, Ma Cit of' Lake Elsinore Carol Cowle Cit Clerk Cit of Lake Elsinore /�_ /11 /1 BHbara ZeidLeib6ld, Cit Attorne Cit of Lake� lsinore Pa 5 CITY COUNCIL RESOLUTION NO. 2010-039 Pa 3 of 3 STATE OF CALIFORNIA COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE 1, CAROL COWLEY, Cit Clerk of the Cit of Lake Elsinore, California, hereb certif that Resolution No. 2010-039 was adopted b the Cit Council of the Cit of Lake Elsinore at a re meetin held on the 22nd da of June 2010, and that the same was adopted b the followin vote- AYES: COUNCIL MEMBERS: BUCKLEY, HICKMAN, MAGEE, MAYOR PRO TEM BHUTTA AND MAYOR MELENDEZ NOES: NONE 0 ABSENT: NONE CAROL cbWLEY INTERIM CITY CLERN, Z!W -ONO 4-4 CIO CIO (n -Ff.- *-o r m. 4 4-4 ell ct ct tU ct cr M too tll C 0 to r. 4J � C4 3 P-4 - C4 • Poo C,3 sno ct • • tos toq tol� foq C) kn C) k-n ton, tll U � N m � • o�� Cld 4-j CTS CIO (A 0 PO k,,A r-..4 V-� V.4 U ct cd a) >1 4-j Q C) 0 +mj 0 0 0 0 r r-m4 r- o 0 4-4 9� V4 P-4 M w 0 3 C4 m 3 M 0 � CQ +.- M 0 � 4a ►� � N � ''� j .,fJ t� p �' � j © • � 4-, •"� N ,�-, p 4—� ••� Ell . � �+-+ '•� ''� cc3 t ' R3 cti 1-4 ,mmm4 >m • • • • • M Cld ^ :z i,�. cn M • C , 3 r-4 C d 4-1 C'd H ct M 0 , : 3 a) ;--4 cts C) C r--4 �4 3 3 Zia r% vat Kilro From-,' Garrett Brown Sent: Monda Ma 14,2012 5:05 M To: Pat Kilro Sub Fwd: Allda ---------- Forwarded messa ---- - - - - -- From: "Garrett Brown" > Date: Ma 11, 2012 12:56 AM' Sub Allda To: "Pat Kilro <pkilro Dear Pat Kiro As per y our re 1. 2004 - 2010 The cit had reduced the Jet ski rental Annual Lake use Passed for 6 Da water craft rentals and All Da Jet Ski. The reduction was at the Residential rate of $100 per water craft. In 2010 and 2011 a reduction was afforded to All Da Jet Ski and WIlliams Boat Rental. 2. We are g oin g to purchase up to 14 Jet Ski annual Passes. The more Jet Skis we can afford to rent. The more people we will be brin to our Cit to spend mone at our local business. 3. we will onl use 6 pass for the ma of the y ear.The other (8) passes we will onl use the water craft for Jul and Au week ends onl and Ma Holida The weekda we don't use the other craft ( 8) skis.. Two of the skis are rescue and motionin onl 4. The 8 extra ski reall don't pa for them selves. @ the $2700 in lake passes, insurance cost for them is $8,800 for those skis. Gas for rentals $1,700 for (8) Skis. Commision. to P is $1,500 (6)Total of $14,700 We will have to rent those Skis 196 time before we see a profit. We make majorit of the mone on (6) ski throu out the y ear. All other companies onl run max (6) Jet skis. The other. 8 ski are so we don't turn people awa on the weekend because ever show up at the same time to rent. We don't want to turn people awa after the drove 60 to 80 miles. Bad reviews will destro our business We have not chan our prices in 4 y ears despite g as prices doublin and risin cost of insurance. We need to maintain this price because it is the ma number that brin people 60 to 80 mile to our lake.. If we raise the price people will not come. The will rent in there area. We are the onl vendor that has succeeded for p and the Cit All others have failed the taco stand, snow cone Lad ice cream, Williams bait tackle is onl survivin off our advertisement Takinv, our customers. We were fi him over him undercuttin people we brou in. We are the bi promoters of the Lake. We have spent $1,000s of dollars of advertisement. Last season we brou in over 7,000 people and spent $31,000 at the local ARCO Gas station. 8. of the $31,000 of fuel in we purchase ,that the cit benefits I% in taxes ($3,000) as well as all of our customer bu g as for the trip home. We pa 15% commission on our hourl rate ($4,500 on fuel that we O!M Pa to cit and cit park on the fuel that is part of our g ross sales. So the cit and Cit park is g ettin g $7,500 commission on fuel that we consume. HMMM� Allda W!M1, Jet Skis,, Sea Duos, Waverunners Rental Lake Elsinore zy Home Pricin Rese"attons Slo Are y ou interested in rentin a letski, Seadoo or Waverunner on Lake Elsinore? 07imum If so, y ou've come to the ri place. All Da let Ski Rental specializes in showin our customers a g reat time on the water with some of the newest letskis available. Whether y ou're from the Inland Empire, Riverside Count LA, LOS, SAN DIEGO, ORANGE, SILVERWOODJEMECULA or be let skiin with us should be y our first stop in Lake Elsinore. The Latest E and The Best Prices on Lake Elsinore! $85 First Hour. Just $69 Each Additional Hour VX Deluxe (110 HP, 3-Seater) Famil Craft FX HO (165HP, 3 Seater) Performance Farntl *With Ever All Day 3et Ski Rental* *Included* Fuel with each rental: ($15-30 per hour savi YES Lake Pass Paid For: ($10 Value) YES Launch Fee Paid For: ($10 Value) YES Life 3ackets For Al! Riders: YES > > Reserve Your Jet Ski Here < < Call us at: (951)-897-1016 t'au"Chin from Piversole Drvve, Lake Elsanore, CA 92530 1, Phone-, 951- 897- 1016 1, Email. alidavietskv, a s aiLcorn Business/ Mailing Address: Wildomar, CA Cop 2009 All Da let Ski LLC Sea Doo RXD1 (130 HP, 2 Seater) Musclecraft Ali Day let Ski, 3@tsk= rental inland erripire, Wand empire J etskr rental, j et ski rental mland empire, j et ski rentral newport beach, corona j et ski rental, southem c-ahrorMa j etski rental, boat rental, j etski rental southern california P ersonal vvatercraft rental� l etski rerita", wa-"'�u-unner rentat, waver-Unner rental rnland ern personal watercraft rental '�akp olsinore, personal watercraft rental south�erri caffornja� So C � k � � satin r C - rap - - n - .,I r viintal,petski 5 , ta' so rai, s, cat J etski rental, waverunner rentai, sea&ko rental, seadoo rerital wuand ern seadoo rental Fouthern, caffomia.seadoo rental southern cat, riverside count jet ski rentai, jet'skk rental rivers"dre, sesdorl rental hverside count riverside county seadoo renta , waveminner riverside count rwerside county waverunner rental, jet ski rerital riverside count californrajetski rental, Jetskr rental catifornia, seaacio rental califisnnia, caffornta seadols rental, wavisrunner California, carifcl-ma waverunmer rental, let ski rental california,letski rentals inland empire, fMand empire jetsk� reptais, jet ski rentals miand empire, jet ski rentals inland empire, indand empire ski rentals, southern catiformaretski sww m jetski rentals southpm califorma, personal watercraft rentals, jetski rentals, waverunne rentals, wavarrinner rentaN lake ekonu-re personal watercraft rentals kike elsinore, pemona! watercraft renta's southern catifornia, so cal watercraft rentals., J etski rentals so cal, so cal jetski rentals, waverunner .. mritals, seadoo rentals, seadoo rentals �ake eisinore, �--.aadao rentals southern califorrna seadoo ro_ntals southern cat, jetskiin �ake elsirrore, jetskiin southern CaVoimia' 4 tskrin lake perns, jetskiin perds, I sitskiro g -so cal� 1, n J etskirri g riverside, jet'skiin los an jetskrin orange county, jetskul-le LA, jetskiin inland empire jstskJig san dre mission ba jetsktin mission beach, retsk�i tsirrecuia� j et ski rentals ternecuia, jetSki rental ternecula, seadoo rental ternecuLa, seadoos, ten-lecula, sea&,oin ternecuda, sea doo re-Atalternecula, Ali Da JptSkt� A Anza, Can Lake, Gilrnan, Hot Sprin Hernet, Hlornelamd, Id LakevmN� Mendee, Mountain Center, Murrieta, Nuevo, Quail, Valle Rornoland, San jacinto� Sun, Gt Temecula, Ma Da 3A-t Ski Pa 10 http://www.allda 5/14/2012