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From: Erica Chua
To: Jeff Hagen <JHAGEN@REDMOND.GOV>
Subject: Cost Recovery Model 
Date: 2025-03-06 16:46:08.778622-10:00

Hi Jeff,

Thanks for the quick updates on your workplan, I appreciate it.  I am following up from our discussion on cost of service for teen programs and services with my expectation of what that would look like.  

The goal of our cost of service methodology is to establish consistency in our fee structures. I look to you and your team as experts in the teen programming area to propose options that align with our cost recovery goals while continuing to provide valuable services to our teen community.  I know that you mentioned that you want certain programs, and drop in opportunities to remain free.  Again, I look to you and your team to determine how we can provide these free services and still meet cost of service, you can look to alternate funding through sponsorship, grants, or by offsetting free programs with higher cost fee based programs.  The goal is to reach a minimum of 11% cost recovery for all Tier 2 programs.

Please see the attached senior services cost recovery powerpoint, this is an example of what I am looking for.  To best serve teens moving forward we need to know the current expenses and revenues for teen programs and services.  As you can see in the attachment, a few different scenarios are shared and then a recommendation is made.  Below are the items that I am looking for from you and your team:

1.	Overview of Teen Programming and Services: Share details on who we currently serve, what programs and services we provide and what role these programs play in teens lives (similar to slide 2 in the attached presentation).  
2.	Comparable teen programs: Research what other teen programs are doing, what is their funding model.  As you research look at how many people they serve, what programs they provide, what is the focus of their programs and when are they offered (similar to page 4 in the attached slide).  Below are some places to explore, but again I would look to you and your staff on what are comparable programs to what Redmond offers.
	
	

*	The Garage Issquah
*	Bellevue
*	Seattle ($7.8 million investment from levy fund to provide free programming)
*	Kirkland ($460,000 investment in 2024 <chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https:/www.kirklandwa.gov/files/sharedassets/public/v/1/city-council/agenda-documents/2023/january-17-2023/3a_study-session.pdf>  to provide free programming)
	
	

3.	Cost Recovery Scenarios: Provide a few different scenarios for teen programming cost recovery.  Outline how fees will be collected and identify any programs or services that may not require a fee. Please include comparisons to other communities and teen center offerings for context. 
	
	
4.	Implementation Plan: Detail how fees will be collected and the staff or equipment needed for this process, and/or how we would seek sponsorship and what you expect that to look like.  For example, would we be seeking one large sponsor, or be creating programs that would each have their own sponsor.  If we moved to a donation model or membership model how would that be tracked and do we currently have the capability to do that in SmartRec?

I hope this provides clarity around the future of teen programming and the need for a comprehensive look at cost of recovery and/or a fee-based model and potential frameworks for how we will provide teen services moving forward.  I would like to have this information together by the end of March, with all options ready for review by Monday, March 31. If you have any questions, please don’t hesitate to reach out.

 

 

 



--- Attachments ---
- Interest Group 2025 Cost Recovery AlignmentUPDATED [Autosaved].pptx
