LAKE BLUFF PARK DISTRICT BLAIR PARK SWIMMING POOL Questions and Answers OVERVIEW

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1 LAKE BLUFF PARK DISTRICT BLAIR PARK SWIMMING POOL Questions and Answers OVERVIEW Q: How did the community rate the pool on the Community Wide survey? A: The top three highest rated facilities were the beach, the parks, and pool. Q: Will the main pool be shut down and if so when? A: This is one option, as the Park District does not have the ability to pay the yearly $500,000 to $600,000 debt payment to repair the pool. (Operations are expected to break even not including additional debt payments.) Partnerships, naming rights, grants and/or a referendum would be necessary to fund expenses to keep the pool open. Without these funding sources the Park District estimates it will need to permanently close the pool facility after the 2011 season due to the significant repairs needed and the inability to address federal and state code violations. Q: Was the Board aware the pool was in such poor condition? A: No, the audit pointed out underlying conditions that the Board did not anticipate. The staff has worked hard over the years to maintain the pool, but it was built in The Board had identified smaller capital repairs ($15,000-$25,000 avg. per year) and had planned for them through the budget process; however the Virginia Graeme Baker Pool and Spa Safety Act (VGB) mandated a new review process that identified more significant problems. The VGB is a new requirement enforced by the U.S. Consumer Product Safety Commission. Q: Why hasn t the Park District saved up for Pool Capital Replacement & Improvements? A. When building or reconstructing a pool, most Park Districts ask the residents to pay for the pool through a referendum due to the magnitude of the costs. Since most pools break-even or operate at a net loss, there are not sufficient revenues generated to fund replacement costs. The pool generates approximately $245,000 in revenue per year making it a break-even entity. In today s tight financial environment, there are no additional funds for projects of this scope.

2 Q: Do you need a larger pool? A: Currently, the bather load is 900 for the community of 8,500 people. FGM has indicated it may be too large for the Lake Bluff community based on a standard formula. The bather load is based on a percent (4-7%) of the population. Current standards for Lake Bluff would indicate a bather load of approximately 320 to 560. However, with the surrounding communities of Great Lakes and Lake Forest using the pool, additional research may be required to qualify the usage from these communities and therefore calculate the correct bather load/pool size. A Community Bather Load recommendation is typically based on many factors. A good starting point for the recommendation is 4-7% of the population to be served. This number should be modified based on additional factors: the capacity of an existing pool (i.e. the size of pool a community may be used to); the type of programming anticipated or scheduled for a community may require more or less capacity (communities with many kids in swim lessons or communities with large competitive swim teams may require more capacity to accommodate these activities simultaneously with recreational swimmers); and community pools with more leisure water and activities may require increased bather capacity compared to traditional lap swim pools. Q: Define bather load? A: "Bather Load" means the maximum number of persons that may be allowed in the pool area at one time without creating undue health or safety hazards. This number is calculated in accordance with the Illinois Department of Public Health Swimming Facility Code. A bather load is calculated based on the following requirements: fifteen square feet of water surface is required for each bather in water less than five feet deep; twenty-five square feet of water surface is required for each bather in water deeper than five feet; deductions are made for each diving board or diving platform and designated plunge areas or landing areas for slides; and one bather is allowed for each fifty square feet of pool deck area in excess of a required four feet wide deck completely surrounding each pool. Q: How many Lake Bluff Private Swim Club members are there? A: There are an estimated 70 Lake Bluff residents who participate in the two private swim clubs. There is an estimated 345 private swim club members between two area clubs. Q: Would the private swim clubs assist with paying for the 50 meter portion? A: One swim club would be able to assist with specific amenities and the other club would not able to fund any aspects of the pool at this time. Q: How many in-house swim club participants? A: In 2009, the park district had 105 in-house participants. Q: What is the cost for the 50 meter area of the pool? A: The estimated cost is approximately $1 million.

3 Q: Why did the Park District choose a 25-yard pool option in addition to other options? A: At this time, the Board would like to explore all options in order to make the best decision possible. The Task Force discussed a 50 meter/25 yard combination and 25 yard options and through a survey, the Task Force ranked the 50 meter/25 yard combination the highest. The Board did request FGM Architects to design a 25 yard concept different than concepts shown to the Task Force. The Board was concerned with bather load and overall costs. It is the responsibility of the Board to evaluate and assess all the features/amenities as this decision has impacts for the next 40 years. FINANCIAL & TRENDS Q: What steps are you taking in case you can t find monies for the pool? A: Unfortunately, the Park District will need to close the pool facility (after 2011 season) due to the severity of code violations and extent of repairs and wait until the residents support funding this initiative or other funding sources are found to update the facility. Q: What steps are you going to take in case you can t find monies for capital replacement/improvements? A: The Park District has started evaluating which facilities, playgrounds, parks and services to eliminate, lease, contract or sell in the event funding is not available. This is a process common to most park districts across the state during these challenging financial times. Q: If the Park District went for a referendum, what would it cost the residents? A. It is premature to have an exact figure as the Park District Board is still in the process of considering community input, discussing options, and determining associated costs. More detailed information will be available at a July Park Board meeting. Q: If a referendum funds these improvements and you must use the monies within three years, how will you address the capital expenses after the fourth year? A. The Board is assessing all expenses and with comprehensive strategic planning, the Board will develop a plan to cover future expenses and communicate the plan to the residents. If the Park District can t obtain the necessary funding, the Park District may evaluate facilities, playgrounds, parks and services and whether to delay, eliminate, lease, contract or sell. Q: What is the long term trend of attendance in your financial reports? A: The trends in these 15 year projections reflect prices for member passes, daily fees, and programming increasing 3% annually. The quantity of daily fees and member passes increases 20% in the first three years of operation and then drops 3% annually in years Staff is finalizing a low, medium and high forecasted budget.

4 Q: How are the estimated costs calculated? Is the multiplier of 1.45% too high? A: Costs are based on actual five-year repair/new construction history. These costs can change based on current market conditions. The 1.45% multiplier is a conservative number and is in line with the industry. Q: Will the Park District raise the cost of a pool pass if the pool is replaced? A: The Board will be challenged to maintain the cost of a pass, but will work to keep costs affordable and competitive. Q: Do maintenance costs increase with each design? A: Maintenance costs do fluctuate based on bather load numbers. In particular, chemicals and utilities vary depending on the number of gallons and bather load limits assigned to each concept design. The direct correlation is reflected in the 15 financial projections. Q: Do attendance numbers include swim lessons and campers who attend daily? A: Attendance is based on ID card scans or daily payments; this number does not include lessons and campers. In 2009, the pool had 20,245 visits. In 2008, the pool had over 26,000 visits. In 2009, there were 1,938 pool members. Q: What is the state of the Lake Bluff Park District finances? A: Pool, golf, and paddle tennis are enterprise funds within the Park District with no tax dollars received. A negative balance in any fund pulls from the overall cash flow. In 2009, total swim pool revenue was $238,000 with a net loss of ($11,400) resulting in a fund balance of $55,200. Q: How do you sustain pool revenues? A: Pools are dependent on weather so membership growth is essential for sustainability. Q: What is the challenge to obtain funds i.e., bond? A: The Park District has retained a Financial Advisor to assist with restructuring its debt. The Park District has some existing debt, approximate $380,000, which is expected to retire in seven years. Even if the Park District obtains bonds for the pool, it would be extremely difficult for the Park District to pay for the bonds with the expired debt. Q: Has the Park District verified the cost estimates for the pool? A: Two reputable Construction Management Firms, Corporate Construction Services and WBO Olsen, have verified the costs and timeframe. Q: What is the percentage of non-residents vs. residents? A: Non-resident daily fee attendance is 39% vs. 61% for residents. Since 2005, nonresident passes sold average 20% vs. 80% for residents. Past attendance and passes sold are provided on the website.

5 GENERAL Q: What is the height of the proposed pool slides? A: 23 feet Q: Why did you build the Paddle Hut if you knew capital was an issue? A: A recent compliance audit pointed out underlying pool conditions that the Board did not anticipate. The staff has worked hard over the years to maintain the pool, but it was built in The Board had identified smaller capital repairs ($15,000-$25,000 avg. per year) and had planned for them through the budget process; however the Virginia Grame Baker Pool and Spa Safety Act (VGB) mandated a new review process that identified more significant problems. The VGB is a new requirement enforced by the U.S. Consumer Product Safety Commission. The Board was not aware of the major issues of the pool and the Paddle Hut was built before the VGB (new federal) requirements. I believe the board would have delayed any construction of the paddle facility if it had been aware of the pool issues or anticipated today s financial climate. Q: What plans do you have for the beach? A: For 2010, the Park District has repaired the dog beach fence, committed $8,500 for bluff improvements, installed a solar light in the portable washroom, and committed staff to clean up the weeds. The board has discussed a process for determining additional improvements but has not made any decisions at this time. Q: How many pool employees are there? A: There are 46 pool employees on the payroll for the 2010 season. This includes lifeguards, concessions, front desk attendants, swim instructors, managers and swim aides. Q: Will the usage rates change if a new pool is built? A: This is difficult to predict as it will depend on what is built and how it is used by Lake Bluff residents and others. Q: Has dialogue been entered into with Lake Forest about building a joint pool? A: Yes, there have been conversations but the Board needs to determine the amenities or features first to include in a new pool. There are many aspects to be explored. The board is expected to finalize discussions by July 31 and the Park District will present the amenities/features to be included in a design to City of Lake Forest Park Board July 13.

6 Q: Has the Park District pursued naming rights? A: The Park District anticipates pursuing this option when the amenities/features and timelines have been finalized. The Park District Board approved a Naming Rights Policy and the Friends of the Park District Foundation will be assisting the Park District with building a relationship with individuals and businesses who may want to be a part of the project. Q: If a new pool is built, can one pool be open while building a new pool? A: It depends on the design and location of a new pool. Q: How many Illinois communities of the same size as Lake Bluff have pools in this price range? A: Itasca has a 1,000-bather load pool for the community of 12,000 people. Lake Bluff pool bather load is 900 for the community of 8,500. This may be too large for the Lake Bluff community. The bather load is based on a percent (4-7%) of the population. Current statistics for Lake Bluff would indicate a bather load of approximately 320 to 560. However, with the surrounding communities of Great Lakes and Lake Forest using the pool, additional research may be required to qualify the usage from these communities and therefore calculate the correct bather load/pool size. A Community Bather Load recommendation is typically based on many factors. A good starting point for the recommendation is 4-7% of the population to be served. This number should be modified based on additional factors: the capacity of an existing pool (i.e. the size of pool a community may be used to); the type of programming anticipated or scheduled for a community may require more or less capacity (communities with many kids in swim lessons or communities with large competitive swim teams may require more capacity to accommodate these activities simultaneously with recreational swimmers); and community pools with more leisure water and activities may require increased bather capacity compared to traditional lap swim pools. Q: Does the cost of new pools include all ADA requirements? A: Yes, a new pool must meet all code and ADA requirements. Q: Can a new pool be built in one year? A: Yes, typically a pool is built from the close of the season and opened at the start of the next season. Q: How is the board planning for the future with all operations? A: In 2010, the board is committed to completing a five-year Strategic Plan. The board is in the initial pages of the plan and expected to communicate the plan in the fall.