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Home My WebLink About01/03/2011Council Work Session January 3, 2011 4:00 p.m. Council Chambers Roll Ca11. Approval of Agenda, as proposed or amended. 1. Presentation of FYE 2010 Audit. 2. Discussion of Sportsplex Project. ADJOURNMENT Suzy Schares City Clerk Waterloo Wellness and Sports Center Feasibility Study Section II — Operations Pro -forma The operations pro -forma is based on the following assumptions: • All operations and business services will be handled in house by the facility. • This pro -forma is based on the center being operated by the City of Waterloo Leisure Services Department and identifies only new anticipated expenditures and revenues. • The revenue projections are based on a basic fee for service concept. The projected rate schedule is reasonably aggressive and the rate of usage of the center is very strong. • No use or revenues from the school district, United Sport and Athlete, health care providers or other potential partners have been shown in this plan. • The first year of operation for the center will be 2012-2013. • This is a preliminary operations pro -forma based on the basic program and concept plan developed for the center at this time. It is expected that this operations plan will be adjusted and updated as the concept plan is refined. Ballard*King and Associates 1 Waterloo Wellness and Sports Center Feasibility Study Operating Expenditures Expenditures have been formulated based on the costs that are normally included in the operating budget for such a facility. The figures are based on the size of the center, the specific components of the facility and the projected hours of operation. Actual costs were utilized wherever possible and estimates for other expenses were based on similar facilities in the Midwest. All expenses were calculated as accurately as possible but the actual costs may be more or less based on the final design, operational philosophy, and programming considerations adopted by staff. Cost scenarios have been developed for the two facility options noted below. Facility Option I - Center with an indoor leisure pool and a 6 lane 25 yard lap pool, gymnasium, running/jog track, fieldhouse, 2 racquetball courts, weight/cardio area, group fitness room, fitness studio, party rooms, child care room, indoor playground, multipurpose room, catering kitchen, lobby/lounge area, locker rooms and administrative area. Approximately 122,000 sq.ft. Facility Option II — The 6 lane 25 yard lap pool is removed from the program Approximately 110,000 sq.ft. Operation Cost Models: Category Option I Option II Personnel (new positions) Full-time 616,200 577,200 Part-time 803,218 746,554 Total $1,419,418 $1,323,754 Commodities Office supplies 10,000 10,000 (forms, paper, etc.) Chemicals 28,000 18,000 (pool/mech.) Maint./repair/mat. 30,000 26,000 Janitor supplies 25,000 23,000 Rec. supplies 90,000 85,000 (classes, pool, etc.) Uniforms 5,000 4,500 Printing/postage 30,000 30,000 Pro Shop/Retail 10,000 10,000 Ballard*King and Associates 2 Waterloo Wellness and Sports Center Feasibility Study Category Option I Option II Other 5,000 5,000 Total $233,000 $211,500 Contractual Utilities* 514,000 454,000 (gas & elec.) Water/sewer 30,000 23,000 Insurance 75,000 65,000 (prop.& liab.) Communications 10,000 10,000 (phone) Contract services** 70,000 65,000 Rent equip. 4,000 4,000 Advertising 35,000 35,000 Training 8,000 8,000 Conference 4,000 4,000 Membership/dues/subscriptions 1,500 1,500 Trash pickup 6,000 6,000 Bank charges 20,000 19,000 Other 5,000 5,000 Total $782,500 $699,500 Capital Replace. fund*** $75,000 $70,000 Grand Total $2,509,918 $2,304,754 Note: Line items not included in this budget are exterior site maintenance and vehicle costs. These items are being paid from other central sources. * Rates are $4.00 sq.ft. for the "dry side" portion of center and $5.00 sq.ft. for the aquatic portion. It should be noted that at the time of this report utility rates were very volatile and could result in a higher energy rate for the center once it opens. Ballard*King and Associates 3 Waterloo Wellness and Sports Center Feasibility Study * * Contract services for Option 1 covers maintenance contracts-$20,000, control systems work- $10,000, computer software upgrades-$12,000, security systems-$12,000, and contract labor-$16,000, Option 21 covers maintenance contracts-$15,000, control systems work- $10,000, computer software upgrades-$12,000, security systems-$12,000, and contract labor-$16,000. *** This is yearly capital funding for equipment replacement and other similar items. This funding will not cover major capital improvements. Ballard*King and Associates 4 Waterloo Wellness and Sports Center Feasibility Study Staffing Levels: Positions Option I Option II EXISTING STAFF Sports/Center Manager 1 1 ($60,000) Administrative Secretary 1 1 ($32,000) Sports Programmer 1 1 ($43,000) Recreation Specialist 1 1 ($38,500) NEW FULL-TIME STAFF Assistant Manager -Facility 1 1 ($42,000) Assistant Manager -Programming 1 1 ($42,000) Marketing and Programming Specialist 1 1 ($38,000) Fitness Programmer 1 1 ($42,000) Aquatics Programmer 1 1 ($42,000) Aquatics Specialist 1 1 ($38,000) General Programmer 1 1 ($42,000) Maintenance Supervisor 1 1 ($3 8,000) Custodian 4 3 ($30,000) Front Desk Receptionist 1 1 ($30,000) Salaries $474,000 $444,000 Benefits (30% of salary) $142,200 $133,200 Total New Full -Time Personnel $616,200 $577,200 New F.T.E. 13 12 (full-time equiv.) Ballard*King and Associates 5 Waterloo Wellness and Sports Center Feasibility Study Note: Pay rates were determined based on the City of Waterloo's job classifications and wage scales. The positions listed are necessary to ensure adequate staffing for the center's operation as well as provide for basic programming for the facility. The wage scales for both the full-time and part-time staff positions reflect an anticipated wage for 2012-2013. The cost of existing full-time staff has not been figured into the operating budget for the center since their salaries already exist in another budget account. However, it is expected that each of the identified positions will have responsibilities at the center. Ballard*King and Associates 6 Waterloo Wellness and Sports Center Feasibility Study Positions Option I Option II PART-TIME Front Desk Super. 63hrs/wk 63hrs/wk ($10.00hr.) Front Desk Attend. 133hrs/wk 133hrs/wk ($8.00hr.) Lifeguard 512hrs/wk 392hrs/wk ($9.00hr.) Head Lifeguard 100hrs/wk 80hrs/wk ($10.00hr.) Gym Attendant* 50hrs/wk 50hrs/wk ($8.00hr.) Fieldhouse Attendant* 55hrs/wk 55hrs/wk ($8.00hr.) Weight room Attendant 103hrs/wk 103hrs/wk ($8.00hr.) Custodian/Bldg. Attend. 90hrs/wk 140hrs/wk ($10.00hr.) Babysitter 102hrs/wk 102hrs/wk ($8.00hr.) Indoor Playground Attendant 41hrs/wk 41hrs/wk ($8.00hr.) Program instructors** Aquatics $43,614 $35,001 ($9.50hr.) General $133,564 $133,564 (rates vary) Salaries $730,198 $678,685 Benefits (10% of wages) $73,020 $67,869 Total Part -Time Salaries $803,218 $746,554 * Position (and hours) is six months (26 weeks) only, due to heavier use of the facility during the winter months. * Program instructors are paid at several different pay rates and some are also paid per class or in other ways. This makes an hourly breakdown difficult. General programs consist of leagues, instructional classes and other such programs. Aquatics includes learn to swim, aqua fitness, and special events. Ballard*King and Associates 7 Waterloo Wellness and Sports Center Feasibility Study Revenues The following revenue projections were formulated from information on the specifics of the project and the demographics of the service area as well as comparing them to national statistics, other similar facilities and the competition for recreation services in the area. Actual figures will vary based on the size and make up of the components selected during final design, market stratification, philosophy of operation, fees and charges policy, and priorities of use. Revenue scenarios have been developed for the two facility options noted below. Revenue Projection Models: Category Option I Option II Fees Admissions 293,400 278,460 20 Visit 72,713 69,113 6 Month 334,750 319,025 Annuals* 1,023,000 994,675 Corporate/Group 75,000 70,000 Rentals** 197,655 172,503 Total $1,996,518 $1,903,776 Programs* * * Aquatics 65,500 52,500 General 200,500 200,500 Contract 7,500 7,000 Total $273,500 $260,000 Ballard*King and Associates 8 Waterloo Wellness and Sports Center Feasibility Study Category Option I Option II Other Pro-shop/retail (50% mark-up) 15,000 15,000 Spec. events 5,000 5,000 Vending (10%-15% of gross sales) 15,000 15,000 Babysitting 21,000 21,000 Total $56,000 $56,000 Grand Total $2,326,018 $2,219,776 * Figures are based on an active program to promote the sale of 6 month and annual passes. * * Rentals are based on the following: Party Room- $25/hr. x 3hrs/wk x 50 wks= $3,750 Conference Room- $25/hr. x 2hrs/wk x 50 wks = $2,500 Group Fitness Room- $70/hr. x 15 rentals = $1,050 Fitness Studio- $50/hr. x 20 rentals = $1,000 Multipurpose Room (non -prime)- $50/hr. x 6hrs/wk x 50 wks = $15,000 Multipurpose Room (prime)- $450/4hrs. x 1/wk x 50 wks = $22,500 Kitchen- $20/hr. x 4 hrs/wk x 50 wks = $4,000 Gym- $50/hr. x 4 hrs/wk x 18 wks = $3,600 Gym- $100/hr. x 2 hrs/wk x 18 wks = $3,600 Fieldhouse- $100/hr. x 20 hrs/wk x 24 = $48,000 Fieldhouse- $200/hr. x 10 hrs/wk x 24 = $48,000 Indoor Playground- $75/hr. x 20 rentals = $1,500 Full Facility- $800/hr. x l0hrs/yr = $8,000 Leisure Pool- $200/hr. x 1 hr/wk x 50 wks = $10,000 Competitive Pool- (6 lanes) $48/hr. x 2hrs/day x 5 x 46 wks = $22,080 Swim Meets- $48/hr. x 8hrs x 8 = $3,072 *** Figures are based on assessing fees that are at least 50% higher than the total cost of operating the program. General programs consist of leagues, instructional classes and contractual programs. Aquatics includes learn to swim, aqua fitness, and other programs. Note: The revenue and use projections in this pro -forma are based on strong usage from the entire primary service area for the facility as well as a strong rental program. Ballard*King and Associates 9 Waterloo Wellness and Sports Center Feasibility Study Expenditure - Revenue Comparison Category Option I Option II Expenditures Revenues Difference Recovery % $2,509,918 $2,304,754 $2,326,018 $2,219,776 -183,900 -84,978 93% 96% This operations pro -forma was completed based on the best information available and a basic understandingof the project and a preliminary concept plan for the facility. As a result there is no guarantee that the expense and revenue projections outlined above will be met as there are many variables that affect such estimates that either cannot be accurately measured or are not consistent in their influence on the budgetary process. Ballard*King and Associates 10 Waterloo Wellness and Sports Center Feasibility Study Future Years: Expenditure - Revenue Comparison: Expenses for the first year of operation of the center should be slightly lower than projected with the facility being under warranty and new. Revenue growth in the first three years is attributed to increased market penetration and in the remaining years to continued population growth. In most recreation facilities the first three years show tremendous growth from increasing the market share of patrons who use such facilities, but at the end of this time period revenue growth begins to flatten out. Additional revenue growth is then spurred through increases in the population within the market area, a specific marketing plan to develop alternative markets, the addition of new amenities or by increasing user fees. Option I Year 1 Year 2 Year 3 Year 4 Year 5 Expenses $2,509,918 $2,585,216 $2,662,772 $2,795,911 $2,935,706 Revenues $2,326,018 $2,558,519 $2,686,551 $2,767,147 $2,850,162 Difference (183,900) (26,596) 23,779 (28,763) (85,544) % Recovery 93% 99% 101% 99% 97% Option II Year 1 Year 2 Year 3 Year 4 Year 5 Expenses $2,304,754 $2,373,896 $2,445,113 $2,567,369 $2,695,737 Revenues $2,219,776 $2,441,753 $2,563,841 $2,640,756 $2,719,979 Difference (84,978) 67,857 118,728 73,387 24,242 % Recovery 96% 103% 105% 103% 101% Note: Revenues are based on the fees for admission being constant over the 5 year period. Ballard*King and Associates 11 Waterloo Wellness and Sports Center Feasibility Study Fees and Attendance Projected Fee Schedule: The fee schedule has not been figured utilizing a fee differential for non-residents. Revenue projections and attendance numbers were calculated from this fee model. Option I & II Category Daily 20 Visit 6-Month Annual Adults $6.50 $97.50 $240 $385 Youth $4.50 $67.50 $135 $220 (4-17) Senior $4.50 $67.50 $135 $220 (62+) Household* N/A N/A $410 $660 * Includes 2 adults and up to three youth. Corporate 10% discount 5 or more mult./annual 15% discount 10 or more mult./annual 20% discount 15 or more mult./annual Rentals Pool $25/hr party room $25/hr conference room $70/hr group fitness room $50/hr fitness studio $50/hr multipurpose room (per section, non -prime time) $450/4hr multipurpose room (all three sections, 4 hour minimum, prime time) $20/hr kitchen $50/hr gym -per court $100/hr full gym $100/hr 'A of fieldhouse/soccer field $200/hr full fieldhouse $75/hr indoor playground $800/hr full facility Competitive $48/hr $8/hr per lane Leisure $200/hr (0-50 persons) $250/hr (51-100 persons) $300/hr (101-150 persons) Ballard*King and Associates 12 Waterloo Wellness and Sports Center Feasibility Study Baby-sitting $2.00/per hour Annual pass holders would also receive 10% off of all program registration fees. Note: Multiple admissions are 20 admissions at a 25% discount. Annual passes require a monthly automatic withdrawal option from the holder's bank account to encourage sales. Use of the racquetball courts are included in the price of admission. Ballard*King and Associates 13 Waterloo Wellness and Sports Center Feasibility Study Admission Rate Comparisons: The above rates were determined based on the competition in the area (public, non-profit and private), the rates paid at similar facilities in other areas of the country. Cedar Falls Recreation Center Element Jr/Sr High Adult Senior (65) Family Daily Res./N.Res $2.50 $5.00 $3.00 $8.00 $5.50 $8.00 $4.75 $7.00 N/A 20 Punch Res./N.Res $33 $65 $38 $120 $65 $120 $58 $100 N/A Wartburg -Waverly Sports & Wellness Center Monthly Rate Individual $50.00 Individual + 1 $70.00 Individual + 2 $80.00 Guest Pass Adult $10 Youth $5 United Sport and Athlete General Fitness Martial Arts Olympic Weight Lifting All Access ($50 activation fee) ($70 activation fee) ($80 activation fee) Sign Up $40 $40 $40 $40 Annual Res./N.Res $65 $130 $75 $195 $130 $330 $115 $270 $190 $430 Monthly $30-$35 $50-$55 $50-$55 $75-$80 Summer Res./N.Res $33 $65 $35 $98 $60 $165 $55 $135 $90 $215 Ballard*King and Associates 14 Waterloo Wellness and Sports Center Feasibility Study Family YMCA of Black Hawk County Activation Monthly Youth to 18 $25 $17 College $25 $24 Adult Basic $40 $36 Adult Fitness $40 $50 One Parent Family Basic $50 $43 One Parent Family Fitness $50 $56 Family Basic $50 $45 Family Fitness $50 $76 Adult 65+ $40 $28 65+ Couple $50 $37 River Plaza Athletic Club Joining Fee $200 Individual $42/month 2nd Person $10/month Covenant Wellness Center 1 Month Annual Individual $28 $336 Couple $47 $564 Family $52 $624 Senior $24 $288 Senior Couple $36 $432 Ballard*King and Associates 15 Waterloo Wellness and Sports Center Feasibility Study Attendance Projections: The following attendance projections are the basis for the revenue figures that were identified earlier in this report. The admission numbers are affected by the rates being charged for residents and non-residents, the facilities available for use and the competition within the service area. The figures are also based on the performance of other similar facilities in other areas of the country. These are averages only and the yearly figures are based on 360 days of operation. Yearly Paid admissions Option I Option II Daily 54,000 51,480 (# daily admiss.) 150 143 20 Visit 17,500 16,700 (# sold annually) 875 835 6 Month 55,900 53,300 (# sold annually) 1,075 1,025 Annual* 208,000 201,760 (# sold annually) 2,000 1,940 Total Yearly 335,400 323,240 Total Daily 932 898 For Option I the 2,525 annual/six month passes are based on selling passes to approximately 7% of the households (32,172 in 2008) in the primary service area and 2% of the households (13,629 in 2008) in the secondary service area. For Option II the numbers are approximately 4%-5% less. Note: All family admissions/passes are counted as one admission only. Admissions for pass holders were figured based on 52 visits for 6 month passes and 104 visits for annual pass holders. Attendance for other events, programs, and spectator functions is more difficult to predict but a best guess estimate is approximately 2.5 times the number of paid admissions. Recreation centers are traditionally the busiest from November to March and mid -June to mid -August and are slow from April to early June and again from mid -August to the end of October. Weekdays between the hours of 5pm and 8pm are the busiest times of the week and weekends are also very busy during the winter months. In contrast mid -morning and early afternoon on weekdays are usually slow as well as weekends during the summer months (especially Sundays). Ballard*King and Associates 16 Waterloo Wellness and Sports Center Feasibility Study Hours of Operation: The projected hours of operation of the wellness and sports center are as follows: Monday - Friday 5:30am to10:00pm Saturday 8:OOam to 8:OOpm Sunday Noon to 8:00pm Hours per week: 102.5 Hours usually vary some with the season (longer hours in the winter, shorter during the summer), by programming needs, use patterns and special event considerations. Ballard*King and Associates 17 Waterloo Wellness and Sports Center Feasibility Study Section III - Project Recommendations The following section details specific recommendations for the Waterloo Wellness and Sports Center project. Remarks are grouped by areas of interest. Programs and Facilities: The design, image and quality of the center has a direct impact on its ability to attract and keep customers. Thought should be given to the building layout as it pertains to crowd control and access, during the final design phase of the project. A visible open design, which highlights the different activity areas and encourages participation from the user as well as the non -user, is essential to generating community excitement and revenue. As much natural light as possible needs to be incorporated into the design while not compromising safety and promoting and maintaining energy efficiency in every way possible. The intent is to build a "smart building" that gives the City of Waterloo the most for its money and the user a sense of quality and value. Weight/cardiovascular fitness area- The presence of this space in the building is essential to developing a strong revenue stream for the center. More revenue per square foot can be generated from this recreation component than any other indoor amenity. It also allows the center to have a higher rate structure due to the value such an amenity has in the market place. Pool- No other amenity affects facility revenues and use as dramatically as a pool and as a result, Ballard*King and Associates believes strongly that any community recreation center that is being built in most settings should include a recreationally oriented swimming pool as part of its facility components. The idea of incorporating slides, current channels, fountains, zero depth entry and other water features into a pool's design has proved to be extremely popular for the drop -in user. Leisure pools appeal to the younger kids (who are the largest segment of the population that swims) and to families. These types of facilities are able to attract and draw larger crowds and people tend to come from a further distance and stay longer to utilize such pools. This all translates into more use and revenue. It is estimated conservatively that a leisure pool can generate up to 30% more revenues than a comparable conventional pool and the cost of operation with shallow water, lower ceiling heights and virtually no seating has been less. Of note is the fact that patrons seem willing to pay a higher admission fee for the use of a leisure amenity when it includes a pool (even if they are not a swimmer). The simple fact that there is a leisure pool in a recreation center will drive the use and ultimately the revenue in the other areas of the center. It is estimated that a leisure pool will increase revenues in non -aquatic areas by as much as 10%. Consistent use of the facility by families and young children is dependent in large part on this amenity. The sale of annual passes and especially household annual passes is also tied to the appeal of the leisure pool. Programs-. Special events are an important aspect of any facility but they are difficult to base consistent revenue on. They can be very disruptive to users and care must be taken to evaluate the benefits and problems caused by such activities. The revenues generated from these programs are not always worth the time and effort to put them together. The center should not be designed specifically to handle the once a year event or activity but should have the versatility to adapt to these needs within reason. Long term programming and facility needs of the schools, Ballard*King and Associates 18 Waterloo Wellness and Sports Center Feasibility Study businesses, and other institutions should be identified and integrated into the operations plan for this facility. The success of indoor recreation centers is dependent on developing a broad based appeal to the general public. The needs of youth, seniors, and families must be considered and their individual concerns and issues addressed. Programs that are intergenerational in nature and those that are specifically oriented towards certain population segments will both need to be developed. The needs of the business community must also be considered if these markets are to be developed. Consideration should be given to contracting for certain programs or services, especially those that are very specialized in nature. Any contracted programs or services should require a payment of a percentage of the fees collected back to the center. It is important to realize that the center must have a balance between program and drop -in use of the various components of the facility. The pool, gym and weight/fitness areas are of particular concern. If these areas do not have substantial times set aside on a daily basis for drop -in use then revenues generated from daily use to annual passes will be in jeopardy. Budget and Fees: The success of this project depends on a number of budget factors, which need special consideration. An operational philosophy must be developed and priorities for use must be clearly identified. The revenue figures contained in this document are based on the principal that the facility will have a balance between drop in use and programmed activities. A goal of consistently covering 50% to 75% of operational expenses with revenues should be attainable but there is little possibility of recovering all operating expenses through facility revenues. However, it must be realized that most of the recreation centers that have been built in the last ten years are not covering their operating expenses with revenues. Maximizing revenue production should be a primary goal. Care must be taken to make sure that a fees and charges policy is consistently followed. No form of revenue production should be given away. A policy should be developed that requires programs and activities which take place in the facility to cost back a percentage of their use in revenue to the building's operation. Capital replacement fund- A plan for funding a capital replacement program should be developed before the center opens. The American Public Works Association recommends between 2% and 4% of replacement cost be budgeted annually for capital items. Costs for maintenance and contract services should be lower than the amount budgeted for the first year since most equipment will still be under warranty. Fees- The revenue projections were based on the concept of not having a resident/non-resident fee differential. With the City of Waterloo having approximately 65% of the population base of the area it will be important that the entire primary and secondary market is encouraged to utilize the center. Fees paid for individual programs do not allow the user to utilize the center on a drop -in basis. A method of combining program fees and drop in use allows an annual pass holder to purchase a "fitness rider" for $100.00, which gives them unlimited access to any fitness class during the time their pass is valid. Some centers actually include "free" fitness classes as part of the Ballard*King and Associates 19 Waterloo Wellness and Sports Center Feasibility Study benefits of having an annual pass. A similar rider may need to be developed for drop -in baby- sitting and/or a baby-sitting punch card introduced. The payment of the drop -in fee should allow the user access to all areas of the center that are open to drop -in use. There should not be separate fees for different portions of the building (such as the pool, gym or weight room). However, annual pass holders will receive 10% of the cost of any program registration fees. A senior discount fee schedule was developed for the center, but it should be considered as a marketing tool rather than a discount based on need. Another option is to offer a limited morning or daytime discount rate that would be available to anyone using the center during this slower period of the day. This would work much like a senior discount without having to label it as one. With the fee structure that has been proposed, it will be necessary to develop a scholarship program for those individuals that cannot afford the basic rates. Established criteria such as eligibility for the school lunch program should be utilized to determine need rather than spending the time and aggravation of developing and administering a new system. The corporate rate program should also be promoted and sold to local businesses in the area. To promote the sale of annual passes it is absolutely essential that a system be set up that allows for the automatic withdrawal from the pass holder's checking account of a monthly portion of the annual pass payment. Without this option it will be difficult to meet the projected sales of annual passes. In addition, charge cards need to be accepted for all programs and services offered by the center. A computerized registration process must also be introduced to speed registration transactions and improve annual pass management. Pre -selling annual passes — Approximately 3 to 6 months before the center opens there must be a program in place to begin the pre -sale of "charter passes" with a savings incentive to promote sales. A goal should be to pre -sell between 25% and 50% of all budgeted passes prior to opening the center. Marketing plan- A marketing plan for the facility and its programs is essential. This document should target specific markets, programs, facilities and user groups. It needs to be an active document that is utilized by the facility manager to guide all marketing efforts. This plan should be updated yearly. Special emphasis must be placed on promoting the sale of annual passes to establish a strong revenue base. The business market should also be a major focus of the marketing effort as well. Staffing- Staffing costs are the biggest single operating expense and alternative options need to be investigated if costs are to be significantly reduced. The use of volunteers, trading facility use for labor and other similar ideas, deserve consideration as methods to reduce staffing budgets. The pay rates for both part-time and full-time personnel were determined based on the need to attract well -qualified employees and minimize staff turnover rates. It is important to budget for an adequate level of staffing in all areas. One of the biggest mistakes in operations comes from understaffing a center and then having to come back and ask for more help later. Maintenance staffing is of particular concern and is most often where cuts are made. Detailed job descriptions should be written for all staff and areas of responsibility need to be clearly defined. An adequate training fund is essential to a well -run center. An emphasis needs to be placed on the importance of image and customer service in all training programs. Ballard*King and Associates 20 Waterloo Wellness and Sports Center Feasibility Study The key to opening a recreation center and have it operate smoothly is hiring the necessary staff well in advance and having them well organized, properly trained and comfortable with the buildings features. They need to be ready to hit the ground running with policies and procedures in place, and a marketing and maintenance program under way. The facility manager should be hired at least one year prior to the center's planned opening. Ballard*King and Associates 21 Waterloo Wellness and Sports Center Feasibility Study Section IV - Appendix Part -Time Staff Hours Revenue Worksheet Ballard*King and Associates 22 Waterloo Wellness and Sports Center Feasibility Study Part -Time Staff Hours: Option I Front Desk - 2 scheduled to work any hours that the center is open, one of which is a full-time front desk receptionist (except for twenty three hours of non -prime time hours which will be handle by part-time staff), plus 3 staff from 4 to 8 pm on week days and 1 to 6 pm on weekends. Time Hours Employees Days Total Hours Per Week Gym Attendant Mon. -Fri. 3pm - 9pm 6 1 5 30 Sat. Sam — 12pm 4 1 1 4 12pm - 8pm 8 1 1 8 Sun. 12pm - 8pm 8 1 1 8 Total 50 hours Note: This position is 26 weeks only during the winter months. Fieldhouse Attendant Mon. -Fri. 3pm - l0pm 7 1 5 35 Sat. Sam — 12pm 4 1 1 4 12pm - 8pm 8 1 1 8 Sun. 12pm - 8pm 8 1 1 8 Total 55 hours Note: This position is 26 weeks only during the winter months. Ballard*King and Associates 23 Waterloo Wellness and Sports Center Feasibility Study Time Hours Employees Days Total Hours Per Week Weight Room Supervisor Mon. -Fri. 5:30am — 1pm 7.5 1 5 37.5 1pm-4pm 3 1 5 15 4pm - l Opm 6 1 5 Sat. 8am — noon 4 1 1 12pm - 8pm 8 1 1 Sun. 12pm - 8pm 8 1 1 30 4 8 8 Total 103 hours Custodian/Bldg. Attendant Mon. -Fri. 8am — 4pm 8 4pm - 8pm 4 Sat. & Sun. lam— l lam 4 llam-3pm 4 3pm- lOpm 7 Total Baby-sitter Mon. -Fri. 8am - 1pm 5 4pm 8pm 4 Sat. loam - 4pm 6 1 5 40 1 5 20 1 1 1 2 2 2 2 8 2 8 2 14 90 hours 5 50 5 40 1 12 Total 102 hours Ballard*King and Associates 24 Waterloo Wellness and Sports Center Feasibility Study Time Hours Employees Days Total Hours Per Week Playground Attendant Mon. -Fri. 3pm - 8pm 5 1 5 25 Sat. Sam —12pm 4 1 1 4 12pm - 6pm 6 1 1 6 Sun. 12pm - 6pm 6 1 1 6 Total 41 hours Pool Guards Summer Season (June, July, August & Holidays-15 wks) Time Hours Guards Days Total Hours Per Week Mon. -Fri. 5:00am - 9am 4 2 5 40 9am - 1pm 4 3 5 60 1pm - 7pm 6 8 5 240 7pm - 10pm 3 5 5 75 Sat. 7:30am - 9am 1.5 2 1 3 9am - l pm 4 3 1 12 1pm - 6pm 5 8 1 40 6pm - 8pm 2 5 1 10 Sun. 12pm - 6pm 6 8 1 48 6pm - 8pm 2 5 1 10 Total 538 hours Ballard*King and Associates 25 Waterloo Wellness and Sports Center Feasibility Study Fall, Winter, & Spring Seasons (September - May-37wks) Time Hours Guards Days Total Hours Per Week Mon. -Fri. 5:00am - 8am 3 2 5 30 8am - 11:30am 3.5 3 5 52.5 11:30am - 1pm 1.5 3 " 5 22.5 1pm - 3pm 2 3 5 30 3pm - 8pm 5 8 5 200 8pm - l0pm 2 5 5 50 Sat. 7:30am-9am 1.5 2 1 3 9am - 1pm 4 3 1 12 1pm - 6pm 5 8 1 40 6pm - 8pm 2 5 1 10 Sun. 12pm - 6pm 6 8 1 48 6pm - 8pm 2 5 1 10 Total 508 hours Note: This schedule is based on a guard rotation concept and on utilizing the Head Guards in the rotation schedule (approximately 100 hrs. a week additional). Based on the pool's configuration, schedule and estimated use patterns, this level of lifeguard staffing will be necessary to ensure adequate protection for swimmers This is an estimate of anticipated guard hours only and actual needs could vary depending on actual use patterns, the final design of the pool and hours of operation. Ballard*King and Associates 26 Waterloo Wellness and Sports Center Feasibility Study Option II Front Desk - 2 scheduled to work any hours that the center is open, one of which is a full-time front desk receptionist (except for twenty three hours of non -prime time hours which will be handle by part-time staff), plus 3 staff from 4 to 8 pm on week days and 1 to 6 pm on weekends. Time Hours Employees Days Total Hours Per Week Gym Attendant Mon. -Fri. 3pm - 9pm 6 1 5 30 Sat. 8am — 12pm 4 1 1 4 12pm - 8pm 8 1 1 8 Sun. 12pm - 8pm 8 1 1 8 Total 50 hours Note: This position is 26 weeks only during the winter months. Fieldhouse Attendant Mon. -Fri. 3pm - lOpm 7 1 5 35 Sat. Sam — 12pm 4 1 1 4 12pm - 8pm 8 1 1 8 Sun. 12pm - 8pm 8 1 1 8 Total 55 hours Note: This position is 26 weeks only during the winter months. Ballard*King and Associates 27 Waterloo Wellness and Sports Center Feasibility Study Time Hours Employees Days Total Hours Per Week Weight Room Supervisor Mon. -Fri. 5:30am — 1pm 7.5 1 5 37.5 1pm — 4pm 3 1 5 15 4pm - 1Opm 6 1 5 30 Sat. 8am — noon 4 1 1 4 12pm - 8pm 8 1 1 8 Sun. 12pm - 8pm 8 1 1 8 Total 103 hours Custodian/Bldg. Attendant Mon. -Fri. Sam — 4pm 8 1 5 40 4pm - 8pm 4 2 5 40 Sat. & Sun. lam— 11am 4 2 2 16 llam-3pm 4 2 2 16 3pm- l0pm 7 2 2 28 Total 140 hours Baby-sitter Mon. -Fri. 8am - 1pm 5 2 5 50 4pm - 8pm 4 2 5 40 Sat. loam - 4pm 6 2 1 12 Total 102 hours Ballard*King and Associates 28 Waterloo Wellness and Sports Center Feasibility Study Time Hours Employees Days Total Hours Per Week Playground Attendant Mon. -Fri. 3pm - 8pm 5 1 5 25 Sat. 8am — 12pm 4 1 1 4 12pm - 6pm 6 1 1 Sun. 12pm - 6pm 6 1 1 6 6 Total 41 hours Pool Guards Summer Season (June, July, August & Holidays-15 wks) Time Hours Guards Mon. -Fri. 5:OOam-9am 4 2 9am - 1pm 4 2 Days 5 5 Total Hours Per Week 40 40 1pm - 7pm 6 6 5 180 7pm - l Opm 3 4 5 60 Sat. 7:30am - 9am 1.5 2 1 3 9am - 1pm 4 2 1 8 1pm - 6pm 5 6 1 30 6pm - 8pm 2 4 1 8 Sun. 12pm - 6pm 6 6 1 36 6pm - 8pm 2 4 1 8 Total 413 hours Ballard*King and Associates 29 Waterloo Wellness and Sports Center Feasibility Study Fall, Winter, & Spring Seasons (September - May-37wks) Time Hours Guards Days Total Hours Per Week Mon. -Fri. 5:00am - 8am 3 2 5 30 8am - 11:30am 3.5 2 5 35 11:30am - 1pm 1.5 2 5 15 1pm-3pm 2 2 5 20 3pm - 8pm 5 6 5 150 8pm - l0pm 2 4 5 40 Sat. 7:30am - 9am 1.5 2 1 3 9am - 1pm 4 2 1 8 1pm - 6pm 5 6 1 30 6pm - 8pm 2 4 1 8 Sun. 12pm - 6pm 6 6 1 36 6pm - 8pm 2 4 1 8 Total 383 hours Note: This schedule is based on a guard rotation concept and on utilizing the Head Guards in the rotation schedule (approximately 100 hrs. a week additional). Based on the pool's configuration, schedule and estimated use patterns, this level of lifeguard staffing will be necessary to ensure adequate protection for swimmers. This is an estimate of anticipated guard hours only and actual needs could vary depending on actual use patterns, the final design of the pool and hours of operation. Ballard*King and Associates 30 • Waterloo Wellness and Sports Center Feasibility Study Program Staffing Option I Aquatics Programs Swim Lessons (instructors are paid $9.50 an hour classes are 45 minutes in length) Summer- staff ($9.50/c1.) 18 classes/day 5 days 10 wks $8,550 Spring/Fa11- staff ($9.50/c1.) 15 classes/day 2 days 16 wks $4,560 Winter- staff ($9.50/cl.) 12 classes/day 2 days 8 wks $1,824 Total $14,934 Water Aerobics Summer- staff ($20.00/cl.) 15 classes/wk 14 wks $4,200 Spring/Fall- staff ($20.00/cl.) 12 classes/wk 26 wks $6,240 Winter- staff ($20.00/cl.) 12 classes/wk 12 wks $2,880 Total $13,320 Private Swim Lessons 5 lessons/week ($15.00/less.) 45 wks $3,375 Other Lifeguard Training 1 staff ($15.00/c1.) 33 hours/sess. 3 sessions $1,485 Therapy Classes 1 staff ($20.00/c1.) 6 classes/wk 40 wks $4,800 Competitive Swimming Camp 2 staff ($20.00hr.) 1.5hrs/5days 2 wks $600 Competitive Diving Camp 2 staff ($20.00hr.) 1.5hrs/5days 2 wks $600 Misc. 1 staff ($15.00/cl.) 6 classes/wk 50 wks $4,500 Ballard*King and Associates 31 c Waterloo Wellness and Sports Center Feasibility Study Total Total Aquatics Programs General Programs Gym Leagues (Adult) Basketball Mon 2 staff ($20.00/game) 1 staff ($8.00/game) Volleyball Wed 1 staff ($15.00/game) Total 3 games/wk 3 games/wk 3 games/wk Gym Leagues (Youth) Indoor Sports (floor hockey, etc.) Sat Su 2 staff ($20.00/game) 8 games/wk 1 staff ($8.00/game) 8 games/wk Total Fieldhouse Leagues (Adult) Indoor Soccer/Flag Football/other leagues MWF 2 staff ($20.00/game) 9 games/wk 1 staff ($8.00/game) 9 games/wk Tourn. 2 staff ($20.00/game) 12 games 1 staff ($8.50/game) 12 games Total Fieldhouse Leagues (Youth) Indoor Soccer/other leagues T Th 2 staff ($20.00/game) 1 staff ($8.00/game) Tourn. 2 staff ($20.00/game) 1 staff ($8.50/game) Camps 2 staff ($20.00hr.) Total 6 games/wk 6 games/wk 12 games 12 games 3hrs/5days 20 wks 20 wks 24 wks 10 wks 10 wks $11,985 $43,614 $2,400 $480 $1,080 $3,960 $3,200 $640 $3,840 24 wks $8,640 24 wks $1,728 6 6 $2,880 $612 $13,860 24 wks $5,760 24 wks $1,152 6 $2,880 6 $612 8 wks $4,800 $15,204 Ballard*King and Associates 32 e• Waterloo Wellness and Sports Center Feasibility Study Grand Total Fitness (dry land) MWF 1 staff ($20.00/c1.) T Th 1 staff ($20.00/cl.) Wknd 1 staff ($20.00/cl.) Total Weight Training 1 staff ($20.00/c1.) Personal Trainer 1 staff ($30.00/sess.) General Interest 1 staff ($15.00/cl.) Youth Programs 1 staff ($12.00/hr.) Birthday Parties 1 staff ($15.00/pty.) 18 classes/wk 10 classes/wk 4 classes/wk 6 classes/wk 15 per week 9 classes/wk 20 hours/wk 10/wk Misc. (dance, martial arts, etc.) 1 staff($15.00/c1.) Total General Programs 12 classes/wk 52 wks 52 wks 52 wks 52 wks $36,864 $18,720 $10,400 $4,160 $33,280 $6,240 52 wks $23,400 52 wks 40 wks 52 wks 52 wks $7,020 $9,600 $7,800 $9,360 $133,564 Note: Many programs and classes could be on a contractual basis with the center, where the facility will take a percentage of the revenues charged and collected. These programs have not been shown in this budget as a result. Ballard*King and Associates 33 E• Waterloo Wellness and Sports Center Feasibility Study Option II Aquatics Programs Swim Lessons (instructors are paid $9.50 an hour classes are 45 minutes in length) Summer- staff ($9.50/c1.) 15 classes/day 5 days 10 wks $7,125 Spring/Fall- staff ($9.50/c1.) 12 classes/day 2 days 16 wks $3,648 Winter- staff ($9.50/c1.) 9 classes/day 2 days 8 wks $1,368 Total $12,141 Water Aerobics Summer- staff ($20.00/cl.) 12 classes/wk 14 wks $3,360 Spring/Fall- staff ($20.00/c1.) 9 classes/wk 26 wks $4,680 Winter- staff ($20.00/cl.) 9 classes/wk 12 wks $2,160 Total $10,200 Private Swim Lessons 5 lessons/week ($15.00/less.) 45 wks $3,375 Other Lifeguard Training 1 staff($15.00/cl.) 33 hours/secs. 3 sessions $1,485 Therapy Classes 1 staff ($20.00/cl.) 6 classes/wk 40 wks $4,800 Misc. 1 staff ($15.00/c1.) 4 classes/wk 50 wks $3,000 Total $9,285 Total Aquatics Programs $35,001 Ballard*King and Associates 34 General Programs Gym Leagues (Adult) Basketball Mon 2 staff ($20.00/game) 1 staff ($8.00/game) Volleyball Wed 1 staff ($15.00/game) Total Waterloo Wellness and Sports Center Feasibility Study 3 games/wk 3 games/wk 3 games/wk Gym Leagues (Youth) Indoor Sports (door hockey, etc.) Sat Su 2 staff ($20.00/game) 8 games/wk _ 1 staff ($8.00/game) 8 games/wk Total Fieldhouse Leagues (Adult) Indoor Soccer/Flag Football/other leagues MWF 2 staff ($20.00/game) 9 games/wk 1 staff ($8.00/game) 9 games/wk Tourn. 2 staff ($20.00/game) 12 games 1 staff ($8.50/game) 12 games Total Fieldhouse Leagues (Youth) Indoor Soccer/other leagues T Th 2 staff ($20.00/game) 1 staff ($8.00/game) Tourn. 2 staff ($20.00/game) 1 staff ($8.50/game) Camps 2 staff ($20.00hr.) Total Grand Total 6 games/wk 6 games/wk 12 games 12 games 3hrs/5days 20 wks $2,400 20 wks $480 24 wks $1,080 $3,960 10 wks 10. wks 24 wks 24 wks 6 6 24 wks 24 wks 6 6 8 wks $3,200 $640 $3,840 $8,640 $1,728 $2,880 $612 $13,860 $5,760 $1,152 $2,880 $612 $4,800 $15,204 $36,864 Ballard*King and Associates 35 Waterloo Wellness and Sports Center Feasibility Study Fitness (dry land) MWF 1 staff ($20.00/c1.) 18 classes/wk 52 wks $18,720 T Th 1 staff ($20.00/c1.) 10 classes/wk 52 wks $10,400 Wknd 1 staff ($20.00/cl.) 4 classes/wk 52 wks $4,160 Total $33,280 Weight Training 1 staff ($20.00/c1.) 6 classes/wk 52 wks $6,240 Personal Trainer 1 staff ($30.00/sess.) 15 per week 52 wks $23,400 General Interest 1 staff ($15.00/c1.) 9 classes/wk 52 wks $7,020 Youth Programs 1 staff ($12.00/hr.) 20 hours/wk 40 wks $9,600 Birthday Parties 1 staff ($15.00/pty.) 10/wk 52 wks $7,800 Misc. (dance, martial arts, etc.) 1 staff ($15.00/cl.) 12 classes/wk 52 wks $9,360 Total General Programs $133,564 Note: Many programs and classes could be on a contractual basis with the center, where the facility will take a percentage of the revenues charged and collected. These programs have not been shown in this budget as a result. Ballard*King and Associates 36 Waterloo Wellness and Sports Center Feasibility Study Revenue Worksheets: Option I Daily Fee # per day Revenue Adult $6.50 70 $455 Youth $4.50 40 $180 Senior $4.50 40 $180 Total 150 $815 x 360 days = Grand Total 20 Admission Passes Fee # sold Revenue Adult $97.50 455 $44,363 Youth $67.50 210 $14,175 Senior $67.50 210 $14,175 Total 875 $72,713 Grand Total 6 Month Passes Fee # sold Revenue Adult $240 300 $72,000 Youth $135 50 $6,750 Senior $135 150 $20,250 Household $410 575 $235,750 Total 1,075 $334,750 Grand Total $293,400 $72,713 $334,750 Ballard*King and Associates 37 Waterloo Wellness and Sports Center Feasibility Study Annual Passes Fee # sold Revenue Adult $385 600 $231,000 Youth $220 25 $5,500 Senior $220 275 $60,500 Household $660 1,100 $726,000 Total 2,000 $1,023,000 Grand Total Revenue Summary Daily $293,400 20 Admissions $72,713 6 Month $334,750 Annual Passes $1,023,000 Total $1,723,863 $1,023,000 Ballard*King and Associates 38 Waterloo Wellness and Sports Center Feasibility Study Option II Daily Fee # per day Revenue Adult $6.50 65 $422.50 Youth $4.50 40 $180 Senior $4.50 38 $171 Total 143 $773.50 x 360 days = Grand Total 20 Admission Passes. Fee # sold Revenue Adult $97.50 425 $41,438 Youth $67.50 210 $14,175 Senior $67.50 200 $13,500 Total 835 $69,113 Grand Total 6 Month Passes Fee # sold Revenue Adult $240 280 $67,200 Youth $135 50 $6,750 Senior $135 145 $19,575 Household $410 550 $225,500 Total 1,025 $319,025 Grand Total $278,460 $69,113 $319,025 Ballard*King and Associates 39 Waterloo Wellness and Sports Center Feasibility Study Annual Passes Fee # sold Revenue Adult $385 575 $221,375 Youth $220 25 $5,500 Senior $220 265 $58,300 Household $660 1,075 $709,500 Total 1,940 $994,675 Grand Total Revenue Summary Daily $278,460 20 Admissions $69,113 6 Month $319,025 Annual Passes $994,675 Total $1,661,273 $1,023,000 Note: These work sheets were used to project possible revenue sources and amounts. These figures are estimates only, based on very basic market information and should not be considered as guaranteed absolutes. This information should be utilized as a representative revenue scenario only and to provide possible revenue target ranges. Ballard*King and Associates 40 bl� BALLARD*KLNG ASSOCIATES LTD Project Proposal Waterloo Wellness and Sports Center Post -Feasibility Services Design Services A. Third Party Design Review - review of building design, lay -out, specifications and equipment by an independent third party. The purpose is to help ensure that the facility design will be functional, operational and as efficient as possible. 1. Review any changes made to the initial master plan conceptual plan 2. Provide a systematic review of the final schematic design/development plans 3. Assist with the determination of the necessary equipment needs Post -Design Services A. Project Milestone Schedule - develop a specific milestone schedule of tasks to be completed prior to opening the center. This will provide a road map for the successful opening of the center. B. Equipment (owners responsibility) - assist with the procurement of the equipment necessary to operate the facility. Provide a listing of all equipment and general specifications, research products available and assist with the development of bid specifications. 1. Listing of equipment needs and general specifications 2. Vendor and product research 3. Assist with the development of bid packages 1 Ballard*King & Associates C. Marketing Plan - Utilizing the marketing strategy developed in the schematic design phase, BKA will develop a comprehensive marketing plan for the facility including promotional tools and strategies, partnerships and alliances and identifying target markets. This can also involve the determination of the potential economic impact that he center will have on the community. 1. Promotion of a fees and charges policy 2. Identify and develop target markets 3. Development of promotional plans for specific programs and services 4. Development of specific promotional tools and strategies 5. Recommendations for the formation of partnerships and alliances 6. Methods to evaluate programs and services 7. Economic impact projections Task Budget Personnel Costs Design Services A. Third Party Design Review $5,000 Post Design Services A. Project Milestone Schedule $1,000 B. Equipment $5,000 C. Marketing Plan $4,000 Total $15,000 Reimbursable Costs: No Reimbursable expenses are included. 2 , 4 k ((k %. • • • . s Financial Report Presentation June 30, 2010 Data portrayed in the attached graphic presentations were derived from the City's financial statements which were audited by McGladrey & Pullen, LLP whose report thereon is dated December 14, 2010. The data presented should be read in conjunction with the City's financial statements. McGladrey McGladrey & Pullen, LLP Certified Public Accountants k l l i �► ' 4k k . . . Agenda II Auditor Communications III Summarize June 30, 2010 Financial Performance II Audit Letters and Compliance McGladrey Auditor Communications with City Officials • Auditor Responsibilities • Accounting Practices: Adoption of, or Change in, Accounting Policies • Management Judgments and Significant Accounting Estimates • Audit Adjustments • Uncorrected Misstatements • Disagreements with Management — None • Consultation with Other Accountants — None • Significant Issues Discussed with Management • Difficulties Encountered in Performing the Audit — None • Future Accounting Pronouncements • Other Written Communications McGladrey 2 k tt((Ik k.4, •, Revenue All Governmental Funds $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 Total 2010 $99,664,172 Property Taxes Other Taxes • 2010 $40,454,704 $13,982,362 • 2009. $38,789,695 $14,368,254 McGladrey Licenses Investment Permits Income $996,031 $170,946 $977,306 $426,353 Rent $1,060,889 $1,060,566 Total 2009 $93,407,535 Intergovernmental $30,681,962 $22,932,392 Charges for Services $8,318,117 $8,772,493 Special Miscellaneous Assessments $225,198 $3,773,963 $37,216 $6,043,260 3 r r I k k i i i k 4 i k k Expenditures by Function All Governmental Funds $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 Total 2010 $113,395,775 Public Safety Public Works Total 2009 $105,767,118 Health and Social Culture and Community and Services Recreation Economic Development • 2010 $26,947,910 $27,635,226 $316,974 $9,264,689 $17,423,767 • 2009 $25,941,016 $23,846,845 $333,706 $8,844,296 $13,954,851 11111 General Government $5,097,361 $5,532,557 1 1 Debt Service Capital Outlay $11,583,129 $10,674,229 $15,126,719 $16,639,618 P. McGladrey 4 t \ k l 1) Z f 1_ 1>> k e k General Fund Balance, Unreserved, Undesignated (In Days) 2010 2009 2008 75 72 4-. 0 10 20 30 40 50 60 70 80 90 100 McGladrey 5 Z\\ 1 t.1\ J& l 1\ 1 4 a a k. k ., All Enterprise Funds - Operations $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 co Lo Lo cv m O N 0 1J O EA O ER June 30, 2009 M N V CO Lo V June 30, 2010 ■Operating Revenues ■Operating Expenses ❑Nonoperating Expenses ■Capital Contributions 0Change in Net Assets McGladrey 6 Internal Control and Compliance Report ' Internal Control Over Financial Reporting o Compliance with Major Programs Tested Under Single Audit McGladrey 7