A Better Plan Operational Success for Aquatic Facilities Through Proper Business Planning Presented By: Scott W. Hester & Darren Bevard

Transcription

1 A Better Plan Operational Success for Aquatic Facilities Through Proper Business Planning Presented By: Scott W. Hester & Darren Bevard

2 TODAY S AGENDA Importance of Aquatics & Interesting Facts Vision and Expectation User Expectations User Needs Program Prioritization Facility Development LSU Case Study Business Plan Development Summary Questions and Answers

3 PARTICIPATION IN SWIMMING RECREATIONAL HAS SKYROCKETED SWIMMING HAS SKYROCKETED Swimming is the 3rd most popular sport or exercise activity There are approximately 314 million visits to recreational water sites each year Swimming placed 2nd for attracting the highest number of female participants Approximately 33.3 million females ages 7 and up participated in swimming Water-based exercise is the fastest growing fitness choice in the U.S Source: NSGA, Exercise Walking, Swimming and Exercising with Equipment Lead Female Participation, Nov. 2009

4 SWIMMING BOOSTS OVERALL HEALTH SWIMMING BOOSTS OVERALL HEALTH Swimming supports our health & boosts our immune system Water temperatures that are lower than ones body temperature cause the body to adapt, creating resistance to illness, like the flu and colds. It also helps breathing, especially for those with asthma Swimming aids in rehabilitation of injuries and post operations - Water allows people to move with less body weight due to its unique gravity condition Stress Management Swimming supports relaxation and recovery, which leads to a more balanced lifestyle Swimming is part of physical education and water safety It s often part of a school s curriculum. Individuals that desire to participate in water sports such as snorkeling or white water rafting must be able to swim Source: Health Assistant, (2008, Aug.) 12 reasons why swimming is good for our health. Health Assistant;

5 INTERESTING FACTS INTERESTING FACTS A 32 year study of over 40,000 men ages 20 to 90 showed that swimmers were 50% less likely to die during the study period than walkers or runners When Osteoarthritis patients complete the same exercise in water versus land, there is less pain and energy expenditure Swimmers develop life skills such as sportsmanship, timemanagement, self-discipline, goal-setting and an increased sense of self-worth from participating in it Swimmers seem to do better in school than non-swimmers Source: AARP; Stager in Men s Health Magazine, Swim for Life;

6 VISION AND EXPECTATIONS

7 HOW TO BE INDISPENSABLE HOW TO BE INDISPENSABLE Define What is Success Plan for Your Success Measure and Share Your Success

8 DEFINE YOUR EXPECTATIONS OPPORTUNITY DRIVEN Every child learn to swim Provide an opportunity for community aquatic recreation to all residents Student Recretation ECONOMIC DRIVEN Revenue generation Increase in property values Business partnership opportunities Attraction for new students Sustainable Operation

9 DEFINE YOUR EXPECTATIONS PROCESS FOR COMMUNITY INVOLVEMENT USER GROUP MEETINGS Swim team, seniors, instructional, families, children, staff, paternerships, etc. PUBLIC MEETINGS Open forum with questions and answers STEERING COMMITTEE Student Groups Parks & Rec Staff Focus Groups Community representation Appointed public officials

10 VISION AND EXPECTATIONS ADULT S VISION

11 VISION AND EXPECTATIONS CHILD S VISION

12 VISION AND EXPECTATIONS AQUATIC SPORT VISION

13 VISION AND EXPECTATIONS THERAPUATIC VISION

14 AQUATIC USER EXPECTATIONS It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change. -Charles Darwin

15 DEMAND FOR A UNIQUE AQUATIC EXPERIENCE IS ON THE RISE Within the last decade demand for higher quality and a unique pool experience has risen There are four (4) types of aquatic facility users: Competitive Recreational Instructional Wellness/Therapy Each of these groups require specific areas, features and services to fulfill their needs and desires

16 AQUATIC USER EXPECTATIONS Multiple opportunities for concurrent programming Blended activities for age groups and skill level Entertainment value Extreme features Increased customer service Vision and expectations vary amongst groups

17 DETERMINING AQUATIC PROGRAMMING NEEDS Programs to be prioritized based upon: Needs Capitol budget Sustainable operations Utilize Steering Committee to prioritize needs Aquatic features selections should consider attendance impacts, usage, throughput and long term operations Capitol budget should identify construction costs as well as indirect cost The two (2) most significant differences amongst user groups are water depth and water temperature Finding the appropriate combination of water type that maximizes program opportunities

18 PRIORITY MATRIX Shawnee County, KS Priority Matrix for Aquatic Amenities 26-May-15 Number Elements Required Preferred Bonus Unnecessary Score Pool Items Water Sprays Wet deck area Bench Seating Areas Zero Beach Entry Participatory Play Structure Rope Swings, Zip lines, Rock Climbing Walls Wave Pool Speed Slides Bowl Slide Meter Diving Boards Separate Water Sprayground Separate Kiddie Pool Lily Pad Walk Lap lanes combined with Rec Pool Activity Channel Meter Diving Boards Single Body Rider Slides FlowRider Current Channel Matt Racer Slide Combined Wading Pool & Sprayground Inner Tube Slide Water Vortex Heated Pool Miscellaneous Floatables Drop Slide Separate Outdoor 6-Lane 25 Yard Lap Pool (3,400 SF) Family Waterslides Separate Outdoor 8-Lane 25 Yard Lap Pool (4,500 SF) Yard x 25 Meter Pool (10 lanes x 10 lanes) (6,150 SF) Stretch 25 Pool (125 ft x 60 ft; i.e. 8 lanes x 17 lanes) (7,500 SF) Separate 50 Meter Pool (164 ft x 75 ft; i.e. 10 lanes x 23 lanes) (12,300 SF) Meter Pool (i.e. option #5) Attached with Leisure Separate 3-4 lane lap pool Lazy River

19 COMPETITION USERS

20 COMPETITION USER PROGRAM NEEDS Specific Dimensional Requirements Water Depth Requirements/Water Temperatures Spectator Seating Deck Spacing Bulkheads Movable Floors Platform and Springboard Diving Timing Systems / Scoreboards Fast Pool Design Principles

21 RACE COURSE PREFERENCES Swimming groups compete in one of three course lengths: 50-meter, 25-meter, and 25-yard. The 50-meter course is the international standard. The 50-meter course length is also typically competed by Masters and USA club swimming during the months between May and August. The 25-yard course length is the most commonly competed swimming distance in the USA, as it is used by the majority of all swimmers. All high school swim meets are competed as 25-yards. The majority of all NCAA swim meets are competed as 25-yards and Masters along with USA club swim 25-yards during the months between September and April. The 25-meter course length is the least competed swimming distance in America. In general, 25-meter swim meets are indicative of international level swim meets, usually competed by higher level Masters, USA Swimming, and NCAA athletes, and is also sometime region specific based on facility type.

22 DIVING 1 Meter - High School, Recreation Value - Water Depth Meter - NCAA, US Diving, Club - Water Depth Meter Platform Diving - FINA, NCAA - Water Depth

23 RECREATION USERS

24 RECREATION USER PROGRAM NEEDS Age Specific Opportunities Varying Water Depth Requirements Combination of Active and Passive Water Maximizing Open Water Spaces Specific Recreational Features (i.e. waterslides, wave equipment, etc.)

25 ACTIVE WATER SPACES

26 PASSIVE WATER SPACES

27 INSTRUCTIONAL USERS

28 INSTRUCTIONAL USER PROGRAM NEEDS Learn to swim Water safety instruction, Lifeguard instruction Life safety skills Survival swimming Scuba Other aquatic skills

29 THERAPY AND WELLNESS USERS

30 THERAPY AND WELLNESS USER PROGRAM NEEDS Injury Rehabilitation Therapeutic Exercise Exercise and Wellness Floor Based Deep Water Water Temp Equipment

31 MAXIMIZING VALUE OF OPEN WATER Crossover of programming Water basketball/volleyball Temporary activities Skill Development

32 NEW GENERATION AQUATIC FACILITIES Competition Aquatic Sports Fitness Lap Lanes Skill Development Extreme aquatic activities Active Recreation Moving water and interactivity Passive Leisure Relaxation and socialization Spaces Therapy, Rehabilitation and Senior involvement Warm Water Learning Opportunities Instructional program spaces Creation of all these spaces within a SAFE, FUN and LEARNING ENVIRONEMNT

33 CONCEPTUAL DEVELOPMENT CASE STUDY LOUISIANA STATE UNIVERSITY

34 PROGRAM DEVELOPMENT 1) Fitness areas 21) Recreation swimming Aquatic Amenity Considerations 2) Specialty courses/programs 22) Lazy river 3) Social areas 23) Social areas 4) Water sports/fitness areas combined 24) Summer camps 5) Social areas 25) Lazy river 6) Training areas (lessons, lifeguard, water safety) 26) Water vortex 7) Recreation 27) Social spaces 8) Fitness 28) Beach style entry 9) Multi-purpose programming water space 29) Beach style entry 10) Recreation 30) Lazy river 11) Relax 31) Large social space (bubble couch incorporated into larger body of water) 12) Excite 32) Lazy river 13) Wet deck 33) Deep water 14) Deep water 34) Wet deck - incorporated bubble couch (small) 15) Water therapy/cold spa 35) Recreation social, spa, etc. 16) Diving (intramural diving team) 36) Fitness lap swimming 17) Access to youth & adults (swim lessons) 37) Diving 18) Vortex (multi-purpose classes, recreation) 38) Recreational swimming 19) Current channel (fitness use) 39) Fitness 20) Floatable feature for Tiger s Den 40) Flowrider

35 PROGRAM DEVELOPMENT High Priority Must Haves Fitness 6 Social areas 6 Recreation 6 Medium Priority Preferred Lazy river 4 Diving 3 Low Priority - Ideal Deep water 2 Beach style entry 2 Vortex 2 Wet deck 2 Multi-purpose areas 2 Lesson programs 2

36 PROGRAM DEVELOPMENT Outdoor Leisure Pool 12,000 SF 25-yard Fitness Lap Lanes (3,375 to 3,750 SF; 6 lanes) Open Water Area (intermediate depth; 1,000 to 1,500 SF ) Deep Water Area (800 to 1,000 SF) Social Water Areas (1,000 to 2,000 SF) Lazy River (4,000 to 5,000 SF) Vortex Pool (200 to 350 SF) Spa (150 to 250 SF) Ingress/Egress

37 PROGRAM DEVELOPMENT Lazy River 4,620 SF Deep Pool 883 SF Int. Depth/Sport Area 1,037 SF Vortex 314 SF Underwater Seating 133 SF Wet Deck 1,888 SF Ingress/Egress 254 SF Total Leisure Pool 9,129 SF

38 PROGRAM VERIFICATION

39 SITE CONSIDERATIONS

40 SITE CONSIDERATIONS

41 SITE CONSIDERATIONS

42 SITE CONSIDERATIONS

43 CREATIVE DESIGN PROCESS

44 CONCEPT DEVELOPMENT

45 CONCEPT DEVELOPMENT Specific amenities

46 CONCEPT DEVELOPMENT

47 CONCEPT DEVELOPMENT

48 ADVANCED CONCEPTUAL DESIGN

49 ADVANCED CONCEPTUAL DESIGN

50 ADVANCED CONCEPTUAL DESIGN

51 FINAL CONCEPT High Priority Must Haves Fitness 6 Social areas 6 Recreation 6 Medium Priority Preferred Lazy river 4 Diving 3 Low Priority - Ideal Deep water 2 Beach style entry 2 Vortex 2 Wet deck 2 Multi-purpose areas 2 Lesson programs 2

52 EQUIPMENT AND SYSTEMS IMPACT

53 DESIGN/TECHNOLOGY WHAT ITEMS CAN HAVE THE MOST SIGNIFICANT CAPITAL COST? Water Quality Filtration Regenerative media Sanitation Ultra-Violet Light Automation Chemical and Pool Control Air Quality Pool Shell Construction Major Recreational Amenities Code Requirements

54 DESIGN/TECHNOLOGY WHAT ITEMS CAN HAVE THE MOST IMPACT ON OPERATIONAL COST Designing for efficient operation Selection of pool equipment and systems are critical to the sustainability of your facility Sustainable Design VFD s LED Lighting Pool Covers Regenerative Filtration Automation Review life cycle analysis of equipment options

55 AQUATIC FACILITY BUSINESS PLANNING

56 BUSINESS PLANNING PROCESS Marketing Plan Revenue Analysis Opinion of Operating Expenses Determine Cash flow Capital Replacement Sharing Business Success

57 MARKETING QUESTIONS TO ASK What type of marketing should be used (Print, Online, Mailers, Billboards)? What is the redemption rate of coupons for each medium? What is the cost for each medium, coupled with the redemption rate? Is it possible to track exposure to your park that marketing brings? Is it possible to track return visits from an initial visit with a coupon? How much of a discount should be given? When does a discount devalue your product to the point of no return?

58 ATTENDANCE BASED MARKETING Know your attendance patterns and create an operational promotional calendar with a strategic pricing and discount structure Chicago 2,500 2,000 1,500 1, Dallas

59 ATTENDANCE BASED MARKETING Know your attendance patterns and create an operational promotional calendar with a strategic pricing and discount structure. 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,

60 MARKETING SUMMARY Know your attendance numbers (daily, weekly, monthly, annually) Base marketing strategy on attendance patterns Discount weekdays, not weekends! Promote value and guest experience

61 KNOW YOUR FACILITY S STATISTICS Personnel Maintenance Supplies Programs Concessions Capital Fund Promotions Training Electricity Chemicals Insurance Admissions Concessions Passes Expenses Personnel $176, % Promotions $5, % Maintenance $13, % Training $6, % Supplies $2, % Electricity $29, % Programs $1, % Chemicals $13, % Concessions $19, % Insurance $3, % Capital Fund $27, % $300, % Programs Rentals Revenue Admissions $219, Concessions $80, Passes $47, Programs $16, Rentals $10, $374,608.00

62 EVALUATE AND PROJECT EXPECTED FACILITY RENTAL INCOME AND EXPENSES FROM LOCAL PARTICIPANT USAGE Aquatics & Fitness Program Revenue & Expenses Price Per Unit Total Units Per Year No. Sellable Revenue Unit Type Notes Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions Year 1 Year 2 Year 3 Year 4 Year 5 Swim Lessons Infant-Level II Session $90 $90 $99 $99 $ ,320 1,386 1,455 1,528 1 $108,000 $118,800 $137,214 $144,075 $158,842 Level III & Adult Session $100 $100 $110 $110 $ $40,000 $44,000 $50,820 $53,361 $58,831 Private Lessons Session $200 $200 $220 $220 $ $14,000 $15,400 $17,787 $18,676 $20,591 Semi-Private Lessons Class $70 $70 $77 $77 $ $4,900 $5,390 $6,225 $6,537 $7,207 Age Group Swim Team Month $98 $98 $108 $108 $ $188,160 $206,976 $239,057 $251,010 $276,739 Masters Swim Team Month $75 $75 $83 $83 $ $155,700 $171,270 $197,817 $207,708 $228,998 Summer Camps Session $150 $150 $165 $165 $ $52,500 $57,750 $66,701 $70,036 $77,215 Water Fitness Hydro Flex Aerobics Class $/Session $5 $5 $6 $6 $ ,650 1,733 1,819 1,910 1 $7,500 $8,250 $9,529 $10,005 $11,031 Hyrdo Flex Pass Pass 10 class pass $35 $35 $39 $39 $ $4,025 $4,428 $5,114 $5,369 $5,920 Sunday Shark Club Pass Pass 10 visit Pass $35 $35 $39 $39 $ $3,150 $3,465 $4,002 $4,202 $4,633 Admissions Daily Admission (Lap Swim/Diving, Fitness) Visit $5 $5 $6 $6 $ ,100 12,705 13,340 14,007 1 $55,000 $60,500 $69,878 $73,371 $80,892 7-Day Admission Pass (Lap Swim/Diving, Fitness) Pass 7 days $19 $19 $21 $21 $ $12,350 $13,585 $15,691 $16,475 $18, Day Admission Pass (Lap Swim/Diving, Fitness) Pass 30 days $63 $63 $69 $69 $ $30,870 $33,957 $39,220 $41,181 $45,402 Health and Safety Lifeguard Training Course 3 classes $250 $250 $275 $275 $ $7,500 $8,250 $9,529 $10,005 $11,031 Water Safety Instructor Course 1-2 classes $300 $300 $330 $330 $ $3,600 $3,960 $4,574 $4,802 $5,295 Lifeguarding Instructor Course 1 class $350 $350 $385 $385 $ $3,500 $3,850 $4,447 $4,669 $5,148 Lifeguarding/CPR Challenge Course 2 classes $75 $75 $83 $83 $ $1,500 $1,650 $1,906 $2,001 $2,206 Non-capacity growth rate Capacity growth rate Area Revenue $692,255 $761,481 $879,510 $923,485 $1,018,143 Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Program Supplies 4% of year 1 gross revenue; 3% annual increase $27,690 $28,521 $29,377 $30,258 $31,166 H&S Class Materials $60 per participant for course record fee and manuals $4,320 $4,752 $4,990 $5,239 $5,501 ARC LTS Facility Fee 1500 cards; ; 3% annual increase $975 $1,004 $1,034 $1,065 $1,097 Marketing 5% of year 1 gross revenue; 3% annual increase $34,613 $35,651 $36,721 $37,822 $38,957 Part-Time Staff 60% of year 1 lessons, addmissions, fitness, and saftey gross revenue; 3% annual increase $415,353 $427,814 $440,648 $453,867 $467,483 Area Expense $482,951 $497,742 $512,769 $528,252 $544,204

63 EVALUATE AND PROJECT ALL OTHER REVENUE OPPORTUNITIES RECOMMEND BEST PRACTICES FOR CONCESSION OPERATIONS Food & Beverage/Retail Revenue & Expenses Price Per Unit Total Units Per Year Total Revenue Per Year Revenue Unit Type Notes Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Food & Beverage Special Events Gross $25,000 $25,000 $27,500 $27,500 $28, $25,000 $27,500 $31,763 $33,351 $36,769 Café Gross $2,000 $2,000 $2,200 $2,200 $2, $2,000 $2,200 $2,541 $2,668 $2,942 Retail Retail Gross $8,000 $8,000 $8,800 $8,800 $9, $8,000 $8,800 $10,164 $10,672 $11,766 ATM Fees Gross $2,500 $2,500 $2,750 $2,750 $2, $2,500 $2,750 $3,176 $3,335 $3,677 Non-capacity growth rate Capacity growth rate Area Revenue $37,500 $41,250 $47,644 $50,026 $55,154 Expense Mgmt Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Food & Beverage Inventory 30% of year 1 gross revenue; 3% annual increase $16,200 $16,686 $17,187 $17,702 $18,233 Retail Inventory 60% of year 1 gross revenue; 3% annual increase $4,800 $4,944 $5,092 $5,245 $5,402 Part-Time Staff 30% of year 1 food & beverage gross revenue; 3% annual increase $8,100 $8,343 $8,593 $8,851 $9,117 Area Expense $29,100 $29,973 $30,872 $31,798 $32,752

64 SMALL PARK REVENUES Revenue Admissions $219, % Concesssions $80, % Passes $47, % Programs $16, % Rentals $10, % $374, % Revenues Admissions Concessions Passes Programs Rentals

65 MEDIUM PARK REVENUE Revenue Admissions $1,735, % Programs $486, % Concessions $116, % Retail $125, % Rentals $62, % Lockers $23, % $2,548, % Admissions Programs Concessions Retail Rentals Lockers

66 LARGE PARK REVENUE Revenue Admissions $3,447, % Groups Sales $204, % Food & Beverage $606, % Merchandise $125, % Rentals $136, % Programs $30, % $4,551, % Admissions Groups Sales Food & Beverage Rentals Merchandise Programs

67 EVALUATE OPERATING EXPENSE BUDGET Facility Staff Labor Expenses Mgmt. Assump Year 1 Year 2 Year 3 Year 4 Year 5 Full Time Facility Staff Salaries Aquatic Complex Manager 1 Staff $75,000 $76,875 $78,797 $80,767 $82,786 Aquatics/Safety Coordinators 1 Staff $75,899 $77,796 $79,741 $81,735 $83,778 Assistant Manager 1 Staff $49,421 $50,657 $51,923 $53,221 $54,552 Recreation Programmer II 2 Staff $117,416 $120,351 $123,360 $126,444 $129,605 Recreation Programmer I 2 Staff $78,040 $79,991 $81,991 $84,041 $86,142 Pool Mechanics 2 Staff $109,532 $112,270 $115,077 $117,954 $120,903 Pool Lifeguard II 2 Staff $93,186 $95,516 $97,904 $100,351 $102,860 Municipal Maintenance Worker 1 Staff $29,577 $30,316 $31,074 $31,851 $32,647 Total Full Time Facility Staff Salaries $628,071 $643,773 $659,867 $676,364 $693,273 Overhead, Benefits, and Training Employee Overhead and Benefits 48% Full Time Salaries $301,474 $309,011 $316,736 $324,655 $332,771 Total Overhead, Benefits, and Training $301,474 $309,011 $316,736 $324,655 $332,771 Total Facility Staff Labor Expenses $929,545 $952,784 $976,603 $1,001,018 $1,026,044

68 EVALUATE OPERATING EXPENSE BUDGET Facility Expenses Expense Mgmt. Assump. Year 1 Year 2 Year 3 Year 4 Year 5 Commodities Operating Supplies $28,200 $28,905 $29,628 $30,368 $31,128 Chemicals $92,150 $94,454 $96,815 $99,235 $101,716 General Marketing $15,000 $15,375 $15,759 $16,153 $16,557 Total Commodities Expense $135,350 $138,734 $142,202 $145,757 $149,401 Contractual Services Insurance Not Included Not Included Not Included Not Included Not Included Repair and Maintenance $47,000 $48,175 $49,379 $50,614 $51,879 Total Contractual Service Expense $47,000 $48,175 $49,379 $50,614 $51,879 Utilities Electricity $0.095/kwh $237,080 $243,007 $249,082 $255,309 $261,692 Gas $45,000 $46,125 $47,278 $48,460 $49,672 Data $1,600 $1,640 $1,681 $1,723 $1,766 Trash Service $11,000 $11,275 $11,557 $11,846 $12,142 Water & Sewer $96,532 $98,945 $101,419 $103,954 $106,553 Total Utilities Expense $391,212 $400,992 $411,017 $421,293 $431,825 Total Facility Expense $573,562 $587,901 $602,599 $617,664 $633,105

69 SMALL AQUATIC FACILITY EXPENSES Expenses Personnel $176, % Promotions $5, % Maintenance $13, % Training $6, % Supplies $2, % Electricity $29, % Programs $1, % Chemicals $13, % Concessions $19, % Insurance $3, % Capital Fund $27, % $300, % Personnel Promotions Maintenance Training Supplies Electricity Programs Chemicals Concessions Insurance Capital Fund

70 MEDIUM PARK EXPENSES Expenses Personnel $1,055, % Benefits $251, % Contract Services $161, % Electric $222, % Gas $50, % Water $69, % Repair $101, % Rentals $4, % Equipment $2, % Communications $2, % Building Maintenance $36, % Chemicals $130, % Retail $126, % Training $10, % Uniforms $5, % $2,228, % Personnel Benefits Contract Services Electric Gas Water Repair Rentals Equipment Communications Building Maintenance Chemicals Retail Training Uniforms

71 LARGE PARK EXPENSES Expenses General Services $793, % Personnel $1,665, % Food and Beverage/Retail $557, % Debt Service $491, % Misc Expenses $189, % Promotions/Events/Sales $279, % $3,976, % Expenses Personnel Debt Service Promotions/Events/Sales General Services Food and Beverage/Retail Misc Expenses

72 CAPITAL REPLACEMENT COST CALENDAR Develop a Replacement Cost Calendar in order to plan ahead for big budgetary items in future years. Pool Vacuum Lifeguard Stands Umbrellas Rescue Equipment (Backboards, Rescue Tubes, Lifejackets, Crash Bags, AEDs) Tables & Chairs Shade Structures Pool Ladders Pool Filter Chemical Controller (Controller, Probes) Chemical Pumps (Pump & Motor) Cleaning Supplies UV System Air Compressors Computers (POS Systems & Equipment) ADA Lifts Lockers Signage Music Systems & Speakers Trash Cans

73 CAPITAL REPLACEMENT COST CALENDAR Life Expectancy Item Years Pool Stucture 30 to 50 Filters 15 to 20 Pumps 20 to 25 Finish - Tile / Grout 50+ / 5 to 10 Finish - Plaster 10+ Finish - Paint 1 to 3 Electrical Interior Switchgear and Panels 30 Electrical Exterior Switchgear and Panels 15 to 20 Transformers 20 Light Fixtures 20 to 30 Dehumidification units 15 to 20 Ductwork 30+ Piping 30+ Boilers 20 to 25 Heat Exchangers 20 to 30 Note: Life is reduced by exposure to moisture & corrosive elements Life is reduced by unbalanced pool water (aggressive or scale forming)

74 CAPITAL REPLACEMENT COST CALENDAR SUMMARY Document every piece of equipment at your facility. Plan ahead for budgetary items, both big and small. Develop a calendar with item, expected lifespan and replacement cost. Communicate future budgetary needs with park management.

75 PERFORMANCE SUMMARY Aquatics Only Project Cost $13,136,000 Attendance 40,386 Revenue $319,345 $329,884 $338,797 $349,762 $360,967 Expense $780,694 $800,211 $820,217 $840,722 $861,740 Operating Cashflow ($461,350) ($470,328) ($481,420) ($490,960) ($500,773) Recapture Rate 41% 41% 41% 42% 42% Capital Replacement Fund $65,700 $65,700 $65,700 $65,700 $65,700 Debt Service ($966,570) ($966,570) ($966,570) ($966,570) ($966,570) Cash Flow ($1,493,619) ($1,502,598) ($1,513,690) ($1,523,230) ($1,533,043) Aquatics & Fitness Project Cost $17,150,000 Attendance 145,671 Revenue $1,196,582 $1,243,639 $1,286,047 $1,334,830 $1,384,555 Expense $1,279,833 $1,311,829 $1,344,624 $1,378,240 $1,412,696 Operating Cashflow ($83,250) ($68,189) ($58,577) ($43,410) ($28,141) Recapture Rate 93% 95% 96% 97% 98% Capital Replacement Fund $85,800 $85,800 $85,800 $85,800 $85,800 Debt Service ($1,261,927) ($1,261,927) ($1,261,927) ($1,261,927) ($1,261,927) Cash Flow ($1,430,977) ($1,415,916) ($1,406,304) ($1,391,137) ($1,375,868) Aquatics 50m Project Cost $14,176,000 Attendance 25,190 Revenue $266,052 $274,604 $282,101 $290,992 $300,070 Expense $574,523 $588,886 $603,608 $618,699 $634,166 Operating Cashflow ($308,471) ($314,282) ($321,508) ($327,707) ($334,096) Recapture Rate 46% 47% 47% 47% 47% Capital Replacement Fund $70,900 $70,900 $70,900 $70,900 $70,900 Debt Service ($1,043,095) ($1,043,095) ($1,043,095) ($1,043,095) ($1,043,095) Cash Flow ($1,422,466) ($1,428,277) ($1,435,502) ($1,441,702) ($1,448,091)

76 HOW TO MEASURE SUCCESS Not everything that counts can be counted, and not everything that can be counted counts. Albert Einstein

77 SHARING SUCCESS The Value of Sharing (Is It Worth The Effort?) Measuring Success and Communicating It Transparency Staff, Political Leaders, Community = Trust Builds & Empowers Teams Investing in the future Not leader dependent Ability to manage change Competency, empowerment Tying results to goals

78 SHARING SUCCESS Tools Consistent, Clear, Meaningful Information Appropriate Tools for Appropriate Audience Board Members Director / CEO Middle Management Public Information Measure YOUR definition of success Make It Clear Much of the data we share is difficult to understand

79 RAW DATA

80 HOW TO MEASURE SUCCESS: TRADITIONAL TOOLS PARK FUND BUDGET Mid Year Projected ACTUAL Over(Under) Projected Over(Under) 2006 Expecation YTD /30/06 Budget Year End Budget Accounting Based Is this the best form of communication for Political Leadership? Senior Management? Community? Points of confusion Seasonality / Short Term = Monthly Missing Big Picture Multi year perspective - Park Sales Tax 2,035, % 913, ,169 (54,942) 1,912,553 (122,447) SALES TAX 2,035, % 913, ,169 (54,942) 1,912,553 (122,447) - - Contracts ,640 5,383 9,025 8,525 Catering 7,500 4,687 3,370 (1,318) 5,392 (2,108) Vending 7,000 4,375 1,797 (2,578) 2,875 (4,125) CONTRACT REVENUE 15, % 9,319 10,806 1,488 17,292 2,292 Rental Income 220, ,939 94,982 (17,957) 185,021 (34,979) Rental - Outdoor 7,500 3,850 3,205 (645) 6,243 (1,257) Rental - Other 1, (1,500) Extra Fees Rental 21,000 10,781 22,005 11,224 42,864 21,864 RENTAL 250, % 128, ,192 (7,378) 234,127 (15,873) Youth 9,350 4,313 4, ,554 1,204 Adult 209,700 96,742 94,909 (1,834) 205,725 (3,975) Senior 101,750 46,941 57,531 10, ,706 22,956 Family 1,145, , ,087 38,719 1,229,228 83,928 ID Cards 3,000 1, (864) 1,127 (1,873) Processing Fees 30,900 14,255 16,438 2,183 35,631 4,731 MEMBERSHIPS 1,500, % 692, ,354 49,350 1,606, ,971 Tot Care 6,000 3,042 1,786 (1,256) 3,522 (2,478) Concessions 141,000 71,481 52,547 (18,934) 103,652 (37,348) Pro Shop 3,000 1, (1,120) 791 (2,209) POS REVENUE 150, % 76,044 54,734 (21,310) 107,965 (42,035) Youth 113,500 54,294 51,651 (2,643) 107,976 (5,524) Adult 80,000 38,269 44,818 6,549 93,691 13,691 Family (130) 228 (272) Senior 6,000 2,870 3, , DAILY FEES 200, % 95,672 99,818 4, ,668 8,668 Fitness 63,000 38,507 42,646 4,139 69,771 6,771 Swim Lessons 52,500 32,089 35,442 3,353 57,986 5,486 Programs 34,500 21,087 15,526 (5,562) 25,401 (9,099) AQUATICS 150, % 91,684 93,614 1, ,158 3,158 Personal Trainers 30,000 16,078 2,809 (13,269) 5,241 (24,759) Specialty 4,000 2,144 3,254 1,110 6,072 2,072 Programs 365, , ,412 3, , ,448 Des Peres Dash 1, ,400 3,400 6,344 5,344 FITNESS 400, % 214, ,875 (5,358) 496,105 96,105 PreSchool 25,000 13,441 16,584 3,143 30,846 5,846 Youth 10,000 5,376 6, ,646 1,646 Adult 13,000 6,989 9,601 2,612 17,857 4,857 Senior 1, (1,000) Camps 95,000 51,076 30,579 (20,497) 56,876 (38,124) Special Events 6,000 3,226 2,859 (367) 5,318 (682) GENERAL RECREATION 150, % 80,108 65,884 (14,224) 122,544 (27,456) General 16,000 8,493 8, , Indoor Adult 4,500 2,389 4,996 2,607 9,412 4,912 Indoor Youth 18,000 9,555 4,563 (4,993) 8,595 (9,405)

81 METRICS & MEASUREMENTS FOR SUCCESS Communicate success that is understandable Tools Financial, Visits (Up is Good Down is bad!)

82 COMMUNICATING RESULTS

83 COMMUNICATING RESULTS

84 WHEN TO SHARE SUCCESS Generate weekly revenue/expense reports throughout the season. Compare current revenue numbers to previous 3-5 seasons. Analyze why numbers are up/down and respond accordingly. Brainstorm new promotions/discounts (if necessary) to generate higher attendance/revenue.

85 SUMMARY Know your numbers! Know your competition and integrate that information into your business plan (pricing, promotions, marketing, etc.). Use guest surveys to evaluate your pricing structure & guest services. Exemplary guest service plays a key role in park s success. Develop a replacement cost calendar in order to plan ahead for big budgetary items in future years. Know your attendance patterns and create an operational promotional calendar with a strategic pricing and discount structure. Conduct in-season financial tracking.

86 FUTURE

87 SUCCESS WHAT WE VE HEARD Facility Design Desire more pool tanks offering diversity in water depths and temperatures Minimize zero entry water by utilizing shallow depth entries Maximize opportunities in open water areas Floatables, water basketball, volleyball and skill development activities Extreme and skill based features Rock climbing, zip lines, FlowRider, etc. Still significant need for lap lanes Addition of dry play areas Aesthetic value and branding through theming, signage and landscaping

88 SUCCESS WHAT WE VE HEARD Facility Operations Nothing goes further than cleanliness Expand concessions If outsourced rebid yearly Use pre-packaged foods when necessary Addition of rental shade areas Party areas, cabanas, shade, etc. Maximize attendance with discounted coupons Partnership opportunities Importance of a defined marketing plan

89 PREPARING FOR THE FUTURE Build in flexibility What can you not get more of? Land What can you change? Community support Facility use Customer satisfaction Program offerings Always be planting seeds for the future

90 WHERE THE FUTURE IS TAKING US? Facilities offering multiple tanks with varying water depths and temperatures. Facilities that offer more diverse opportunities while accommodating special needs and cultural groups More luxury so called luxury spaces such as hot tubs, steam rooms Aquatic facilities are becoming community hubs Designed for a greater ease of operation and maintenance, with as much thought going into cleaning and replacement Look towards trend setters Entrepreneurs, Resort Industry, Universities

91 OPERATIONAL SUCCESS THROUGH BETTER BUSINESS PLANNING SUSTAINABLE REVENUE PLANNING

92 THANK YOU A Better Plan Operational Success for Aquatic Facilities Through Proper Business Planning Presented By: Scott W. Hester & Darren Bevard