CC - Item 9B - Non-Resident Fees for Senior Meal ProgramROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAGER
DATE: JULY 27. 2010
SUBJECT: NON-RESIDENT FEES FOR SENIOR MEAL PROGRAM
SUMMARY
At its regular meeting on May 25, 2010, City Council authorized an increase in non-
resident fees for recreation programs. However, fees related to the senior lunch
program were not adjusted because patrons are asked to pay a donation. Currently,
60% of the program budget is comprised of Community Development Block Grant
(CDBG) funding, which is limited to resident services unless a specific finding is made.
More than half of senior lunch program participants are non-residents. Thus, Rosemead
is subsidizing a portion of non-resident meals with CDBG funding. It is, therefore,
recommended that, while donations will continue to be requested of resident patrons,
non-residents would be charged a flat fee for a meal to avoid continued subsidies.
Staff Recommendation
Staff is seeking Council direction in establishing a fee for non-resident patrons of the
senior lunch program:
Option A: Establish a non-resident senior meal fee of $3 per meal effective
August 2, 2010 and direct staff to assess fees annually in accordance with their
actual cost; or
Option B: Establish a non-resident senior meal fee of $2 per meal effective
August 2, 2010 and increase the fee to $3 effective July 1, 2011, and direct staff
to assess fees annually in accordance with their actual cost.
ANALYSIS
Because we currently ask for a donation of senior lunch program participants, the
program was not evaluated for a fee increase in May. For years, a donation of $1.25
has been solicited from both resident and non-resident seniors. This, despite an actual
meal cost to the City of $2.96 per meal currently. On average, more than 50% of those
who regularly participate in the senior meal program are non-residents. There are,
though, days in which non-resident participation significantly increases depending
ancillary activities.
APPROVED FOR CITY COUNCIL AGENDA: ITEM NUMBER:
City Council Meeting
July 27, 2010
Page 2 of 2
The fiscal Year 2010-11 budget for senior meals is $137,000, including $82,000 (60%)
in CDBG funding. Title 24 of the Code of Federal Regulations (pertaining to CDBG
funds) limits use of such funds unless "the grantee determines that such an activity is
necessary to further the purposes of the [Housing and Urban Development] Act and the
recipient's community development objectives, and that reasonable benefits from the
activity will accrue to residents within the jurisdiction of the grantee." (Housing and
Urban Development, Part 570 - Community Development Block Grants §570.309)
This means that the City significantly subsidizes the cost of meals to resident and non-
resident participants using general and CDBG funds. This is inconsistent with federal
regulations. While it is recommended that residents continue to access the program on
a donation-only basis, non-resident subsidies should be reconsidered.
If a non-resident fee is established, notice will immediately be given to all regular senior
program participants informing them of any approved fee changes.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
FISCAL IMPACT
If current participation levels are maintained, costs would remain unchanged and an
increase in revenues would result.
Submit, O by:
DAVI
Director