7.F.
City Council Meeting - FINAL
- Meeting Date:
- 09/01/2026
- From:
- Rebecca Sayers, Parks, Recreation, Open Space, and Events Director
TITLE:
Consideration and Approval of Contract Amendment: First amendment to Kimley-Horn Parks, Recreation, Open Space, and Events (PROSE) Master Plan contract to include a user rate fee study for the PROSE and Communication and Civic Engagement (C&CE) Divisions.
STAFF RECOMMENDED ACTION:
- Approve the contract amendment with Kimley-Horn and Associates to include a user rate fee study for an amended contract amount not to exceed $254,530 (the cost of the user rate fee study is $55,000).
- Authorize the City Manager to execute the necessary documents.
Executive Summary:
PROSE entered into a Council-approved contract for a PROSE Master Plan in March 2026 and the project is well underway. Kimley-Horn has attended several pop-up events, created marketing materials, and has created a website for the community to get involved in the Master Plan (https://flagstaffprose.com). Since the date the project kicked off, PROSE has been working with Management Services to start work on a PROSE user fee rate study, as has the Communication and Civic Engagement Division. Upon considering the scope of work for a user fee rate study, staff determined it would be best to utilize the same consultant that is doing the Master Plan, as they are already engaging with the community about PROSE programs and amenities, and they are familiar with PROSE assets, programming, budgets, costs, and maintenance needs. The consultant will also be able to complete public engagement about user fees at the same time as public engagement about the Master Plan, creating efficiencies and alleviating potential confusion in the community that may occur if the user fee study and Master Plan were not coordinated.
Financial Impact:
Project Name: PROSE and Communications and Civic Engagement user rate fee study
Cost: $55,000
Account Number Budgeted: 001-09-402-1314-1-4206
FY2026-27 Budgeted Amount: $60,000 for rate studies
Grant Funded: No
Funding Source: General fund
Cost: $55,000
Account Number Budgeted: 001-09-402-1314-1-4206
FY2026-27 Budgeted Amount: $60,000 for rate studies
Grant Funded: No
Funding Source: General fund
Policy Impact:
There is no policy impact with this contract amendment. User fee recommendations will be brought to Council for discussion after the study is complete.
Previous Council Decision or Community Discussion:
Council approved the underlying contract on March 3, 2026.
Options and Alternatives to Recommended Action:
Not approve the contract amendment and direct staff on how Council would like to see a user fee rate study completed for PROSE and C&CE Divisions.
Background and History:
Periodic reviews of user fees help ensure transparency, equitability in fee structures, and sustainability of city services. Specifically, periodic reviews help ensure that fees are adequate for cost recovery, distributed fairly among users, and promote transparency by allowing the community to understand how user fees are determined and used. The City adopted a Citywide Cost Recovery Policy on January 20, 2026 which provided guidance to review user fees and charges every five years. The policy also sets cost recovery expectations based on whom the program benefits.
The parks and recreation fees were last reviewed in 2017, however Council decided not to increase fees at that time. Since there have not been any adopted fee changes since 2014, the recovery of costs has not kept up with the cost of providing the programs in our community. Our fees are likely trending below other cities in Arizona at this time. The policy sets an expectation of 0% to 80% cost recovery for PROSE based on the type of program provided.
Cemetery fees were last reviewed and adopted November 2015 so these will also be reviewed with this contract. The policy sets an expectation of 80% to 100% cost recovery for cemetery fees.
The Communication and Civic Engagement fees were last reviewed and adopted in 2009 with liquor licenses being updated again in 2015. The policy sets an expectation of 80% to 100% cost recovery for Communication and Civic Engagement fees.
The parks and recreation fees were last reviewed in 2017, however Council decided not to increase fees at that time. Since there have not been any adopted fee changes since 2014, the recovery of costs has not kept up with the cost of providing the programs in our community. Our fees are likely trending below other cities in Arizona at this time. The policy sets an expectation of 0% to 80% cost recovery for PROSE based on the type of program provided.
Cemetery fees were last reviewed and adopted November 2015 so these will also be reviewed with this contract. The policy sets an expectation of 80% to 100% cost recovery for cemetery fees.
The Communication and Civic Engagement fees were last reviewed and adopted in 2009 with liquor licenses being updated again in 2015. The policy sets an expectation of 80% to 100% cost recovery for Communication and Civic Engagement fees.
Connection to PBB Priorities and Objectives:
High Performing Governance: Maintain the organization’s fiscal stability through strong financial policies and best practices.
Safe and Healthy Community: Promote physical and mental well-being through providing recreational opportunities, parks, open space, and active transportation options.
Livable Community: Provide amenities and activities that support a healthy lifestyle
Safe and Healthy Community: Promote physical and mental well-being through providing recreational opportunities, parks, open space, and active transportation options.
Livable Community: Provide amenities and activities that support a healthy lifestyle
Connection to Regional Plan:
There is no connection to the Regional Plan.
Connection to Carbon Neutrality Plan:
There is no connection to the Carbon Neutrality Plan.
Connection to 10-Year Housing Plan:
There is no connection to the 10-year Housing Plan.
Connection to Division Specific Plan:
This user rate fee study will coordinate with the ongoing PROSE Master Plan.