Bethel School District Aquatic Center Study. April 30, 2014

Transcription

1 Bethel School District Aquatic Center Study Prepared By The Sports Management Group April 30, 2014

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3 Bethel School District Aquatic Center Study Prepared For The Bethel School District By The Sports Management Group th Street, Suite B Berkeley, CA

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5 Table of Contents Executive Summary i Background 1 Market Analysis 2 Demographic Analysis 2 Service Providers 11 NSGA Projections 13 Space Program 16 Developing the program 16 Aquatic Design Trends 22 Financial Analysis 24 Probable Operating Costs 24 Revenue Potential 28 Lynnwood Center Case study 32 Cost Recovery 34 Schedule Analysis 35 Assumptions 35 Pool Schedules 37

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7 Table of Contents List of Figures Fig 1 Radius Map (.5 Mile, 2 Mile, 3 Mile) 4 Fig 2 Total Population by Radius 5 Fig 3 Households by radius 5 Fig 4 Drive Time Map 6 Fig 5 Total Population by Drive Time 7 Fig 6 Age Groups By DRive Time 8 Fig 7 Households By Drive Time 9 Fig 8 Family Households by Drive Time 9 Fig 9 Household INcome by Drive Time 10 Fig 10 Poverty by Drive Time 10 Fig 11 Education by Drive Time 11 Fig 12 Service Providers map 12 Fig 13 Swim Participants 14 Fig 14 Swim Participations 14 Fig 15 Option 1 (50-M) Program 20 Fig 16 Option 2 (25-M) Program 21 Fig 17 Option 1 Operating Costs 26 Fig 18 Option 2 Operating Costs 27 Fig 19 Option 1 Revenue Potential 29 Fig 20 Option 2 Revenue Potential 29 Fig 21 Fees and Charges 30 Fig 22 Option 1 Cost recovery 34 Fig 23 Option 2 Cost Recovery 34 Fig M Summer Schedule 37 Fig M Fall/Winter/Spring Schedule 38 Fig M Summer Schedule 39 Fig M Fall/Winter/Spring Schedule 40 Fig 28 Rec Summer schedule 41 Fig 29 Rec Fall/Winter/Spring Schedule 42

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9 Bethel School District Aquatic Center Study i Executive Summary The Bethel School District is studying the feasibility of constructing an indoor multi-purpose aquatic center to generate community and student access to a wide range of year-around aquatic programming, create a water safe community through swim instruction, and provide needed facilities for high school aquatic team training and competition. The Sports Management Group was retained by the School District to provide analysis related to the space program, market, operating cost, fees, and revenue for an aquatic center. In this study, market research, space planning, and the financial analysis are based on original sourcing and an unbiased response to the data and provided information. The District provided parameters that shaped the building program and the project economics presented in this report: 1. The design and programming of the pools must maximize learn-toswim instructional classes. 2. The lap pool must be sized to accommodate the simultaneous training of four high school swim and dive teams. 3. The size, type and temperature of pools must serve the broad community aquatic needs and interests. 4. The operation of the center must generate sufficient revenue to achieve a cost recovery rate acceptable to the School Board. That rate has not been established. Market Analysis Demographics were examined using a 3-mile radius from the site, identified as th Avenue East in Spanaway, and using drive times. Due to the expansive boundaries of the district, and the public s willingness to drive, market segments were analyzed based on drive times. Drive time distances of 10, 15, and 20 minutes (termed primary, secondary, and tertiary market areas) were used to study the demographic composition of potential aquatic center users. The 15-minute drive time includes both primary and secondary market areas, and is defined as the range for frequent users. It was used in estimates of participation and revenue potential. Key findings of the market analysis demonstrate that there is sufficient population and number of households with children to generate significant revenue (derived from open recreation swim, learn-to-swim, warm water fitness, and party rentals). Age group composition within all drive times shows a core population of family-forming adults as well as children and teens, which suggests the likelihood of high interest/ demand in aquatic programming targeting children and families. Within a 15-minute drive time of the center, there are 42,456 familyforming adults, 18,970 children between the ages of 5 and 14 years, an additional 9,760 persons ages 4 and under, and a total population of 127,736. Families, including children, constitute the core age groups using open recreation swim time. These breakdowns were utilized in the 2014 The Sports Management Group

10 ii Bethel School District Aquatic Center Study calculations for daily admission and pass sales. The demographic analysis also shows that the population is well educated with low rates of poverty. These findings suggest that the hypothetical facility fees, set at a market price in-line with similar facilities in Washington, will be affordable to most families. An analysis of private, public, and commercial aquatic service area providers shows that there is little competition for market share in both competitive and recreation swim. Within the School District boundaries, Kinder Swimmer is the only commercial location offering learn-toswim programming. There are no 50-meter or 25-meter x 25-yard lap pools within the School District boundaries. This, along with the above demographics, indicate that there is a sufficient market of participants to achieve the projected revenue. Programming Two space program options were developed and tested using the District s criteria. Both options have three bodies of water a competitive / fitness / instructional pool, a multi-use warm water recreation pool, and a soaking hot tub. The variable for both options is the size of the competitive / fitness / instructional pool: Option 1 has a 20-lane 25-yard x 50-meter pool with a bulkhead (moveable wall) and Option 2 has a 10-lane 25-yard x 25-meter pool. The District s requirement that four high school swim and dive teams train simultaneously necessitates a 50-meter pool to provide sufficient lane capacity. Option 2 with 10 lanes does not meet the district s requirement for four teams of 30 swimmers each, to train simultaneously. The analysis of this pool is included to provide additional information. Option 1 has a gross square footage of 66,400sf and Option 2 has a gross square footage of 49,600. These square footages are used in the Financial Analysis to project operating costs. Other district parameter, including water depth, influenced the revenue projections for both the 50-meter and 25-meter pools. Financial Analysis The financial analysis presents the probable operating costs and the revenue potential for both pool options. Although the 10-lane option does not have the lane capacity for simultaneous high school training, it is half the size of the 50-meter pool and has a lower operating cost and higher cost recovery. Expense, revenue, and cost recovery projections are found in the report. The total probable cost of operation for Option 1 ranges from $1,845,000 to $1,962,000. Option 2 costs range from $1,666,000 to $1,776,000. The differences in operating cost is primarily the increased cost for utilities and pool chemicals that are attributable to the larger size of the 50-meter pool and the pool enclosure (natatorium). The revenue potential for Option 1 ranges between a low of $1,251,000 to a high of $1,624,000. This is an increase of $26,000 to $54,000 over Option 2 with revenue potential of $1,225,000 as the low, and $1,570,000 as the high. The revenue potential for the 50-meter pool is estimated to range from $181,000 to $247,000. Revenue for the 25-meter option is estimated to range from $157,000 to $195,000. The competitive pool revenue is primarily attributable to lane rentals to non- District teams for training and competition The Sports Management Group

11 Bethel School District Aquatic Center Study iii The recreation pool generates the greatest amount of revenue for the aquatic center and helps to offset some of the operating subsidy required by the 50-meter or 25-meter pool. Total revenues associated with this pool range from a low of $1,061,000 to a high of $1,366,000. Fee pricing is based upon comparables for similar facilities in Washington-- primarily the Snohomish School District Aquatic Center, the Lynnwood Recreation Center (for the recreation pool pricing), and the Federal Way Recreation and Swim Center. Because market area demographics show income in-line with or above state averages, fees set at the market price of the Seattle metropolitan area, will be affordable. It is The Sports Management Group s opinion that Option 1 will require an operating subsidy of $600,000 to $650,000. Over a three-year period this may be reduced to $400,000 to $500,000 as programs and teams grow. Option 2 requires an operating subsidy between $400,000 to $450,000. Over a three to four year period, this subsidy could be reduced to $200,000 to $300,000. The market s awareness of the facility and it s offerings will increase over time. The revenue from the sale of a daily admission is a major source of revenue for the aquatic center, generating between $466,000 and $626,000 of annual revenue. These sales are primarily attributable to the use of the recreation pool during Open Recreation. The revenue is based on an estimate of 93,000 daily admissions as the low, to a high of 124,000 daily admissions annually. The low number is conservative and the upper number is achievable, based upon the experience of other facilities in the region, the population totals and breakdown within a 15-minute drive time explained earlier, and the lack of service providers The Sports Management Group

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13 01 Background

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15 Bethel School District Aquatic Center Study 1 Background The Bethel School District is the 13th largest district in the state with an estimated enrollment of over 18,000 students. The expansive district covers over 215 square miles in southeast, unincorporated Pierce County and the communities of Spanaway, Kapowsin, Graham, and the city of Roy. The District is home to over 100,548 1 residents for whom the District is actively engaged in providing resources not only for education, but community resources that contribute to the quality of life. The District is studying the feasibility of constructing an indoor multipurpose aquatic center to provide students and the community the opportunity to participate in year-around aquatics. The primary program objective is creating a water safe community. Drowning is the second leading cause of unintentional injury death for children in Washington. 2 Teaching children and adults how to swim is critically important for basic water safety. The aquatic center will also provide needed facilities for training and competition for high school aquatic team sports. Other programs and activities include water exercise, fitness swimming, family recreation, senior fitness, therapeutic uses, and more. In 2012, Don Carey & Associates (DCA) performed an Aquatics Feasibility Study for the Bethel School District. Study findings indicated a need for an aquatics complex in the District. In September 2013 Ballard King & Associates conducted a review of the DCA study and conceptual building plans developed by Erickson McGovern Architects. During August and September 2013, Leisure Vision conducted a community survey regarding an indoor aquatic center. The Sports Management Group was retained by the District to provide analysis related to the space program, market, operating cost, fees, and revenue for an aquatic center. The District provided parameters that shaped the building program and the project economics presented in this report: 1. The design and programming of the pools must maximize learn-toswim instructional classes. 2. The lap pool must be sized to accommodate the simultaneous training of four high school swim and dive teams. 3. The size, type and temperature of pools must serve the broad community aquatic needs and interests. 4. The operation of the center must generate sufficient revenue to achieve a cost recovery rate acceptable to the School Board. That rate has not been established. The current study began with a thorough review of the previous reports, survey results, and conceptual facility plans. The information provided useful project background. However, the current study does not attempt to build on the previous work. In this study, market research, needs assessment, space planning, and the financial analysis are based on original sourcing and an unbiased response to the data The Sports Management Group

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17 02 Market Analysis

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19 Bethel School District Aquatic Center Study 2 Market Analysis Overview The Sports Management Group conducted a market analysis to assess the market conditions that impact the demand for aquatic programs, activities, and drop-in uses, and measure the capacity of the market to respond to that demand. The steps of this analysis were to: 1. Examine the demographics of the market 2. Assess market potential 3. Inventory commercial, public, and private service providers for competitive, instructional, and recreational aquatics 4. Identify competitive, instructional, and recreational markets for aquatics 5. Apply this information to develop preliminary fees and charges for daily admissions and annual passes, and programs These elements are described in this report. Using the findings of the market analysis, projections of annual operating revenue were then developed. Demographic Analysis Demographics are an effective instrument for making conclusions about potential aquatic users and appropriate programs, as recreation and aquatic interests vary based on differences in age, family status, income, and other population characteristics. An examination of patterns in educational attainment and income, household composition, population growth, and age groupings within the market area can be used to make conclusions about the likelihood of demand for aquatic programs and services and the ability to meet the demand. Unless otherwise stated, demographic data provided in this report is based upon US Census data and projections developed by the Nielsen Company SiteReports, an industry leader in global information, market research, and demographic data. BETHEL SCHOOL DISTRICT POPULATION PROJECTIONS The Bethel School District is a public school district located in southeast Pierce County, Washington. The district covers 215 square miles and currently constitutes 13.8% of the county s public school enrollment, at over 18,000 students. Population within the Bethel School District service area has experienced significant growth over the last decade The Sports Management Group

20 3 Bethel School District Aquatic Center Study According to the Bethel School District Long Range Projection Update, prepared by W. Les Kendrick, Ph.D., the State of Washington is predicting a marked increase in the K-12 enrollment statewide between 2015 and 2025 due to more births. K-12 public school enrollment in the county is expected to increase by 8,000-14,000 students by Report data shows that the district service area underwent a 26% total population increase between the 2000 Census and 2010 Census, from 79,811 to 100,548. The same report projects further growth, from a low of 24% (124,262) to a high of 26% (126,558) by METHODOLOGY Although an examination of the entire School District population provides insight into demographic patterns at a larger scale, it is less applicable to the closer market area of the aquatic center site. An examination of those who reside in the primary, secondary, and tertiary market areas aid in projecting the demand for programs and facilities, participation, and the sale of daily admissions and annual passes. To identify the market areas and the population residing within the market area, two types of measurements were used: (1) distance in miles from the site and, 2) drive-time from the site. Useful information is gained from using both types of measurements. The site for the aquatic center is identified as th Avenue East, Spanaway. DISTANCE IN MILES The population residing within a 0-3-mile radius of a recreation or an aquatic facility is considered a key market because of proximity. From this population come the likely participants and frequent users, if the facility provides activities of interest to them. The 3-mile radius was more finely segmented into half-mile, half- to two-miles, and two- to three-miles radii of the site. Figure 1 shows a map of these radii. The characteristics of the population within each radius were studied and the key findings are reported below. These findings were considered in the development of estimates of participation and pass sales as described in the revenue section of this report. Population Although the School District population has experienced significant growth, population density and growth are relatively low within a closer range of the aquatic center site. Within a half-mile, the 2010 Census reports a population of just 1,738 (see Figure 2). Between the 2000 Census and 2010 Census, this area experienced a slight population decline of 3.6%. Although this trend has reversed, the population is projected to increase only slightly, to 1,800, by Between , the ½-mile to 2-mile experienced a population increase of 24.1%. This number is projected to grow, from a current population estimate of 16,894 to 17,888 in More dramatically, the 2-3 mile area underwent a population increase of 53.9% between the 2000 and 2010 Census. Its population is projected to grow another 9.7% between , from 19,876 to 23,819. The growth of population is reflected in the projected aquatic center revenue figures The Sports Management Group

21 Bethel School District Aquatic Center Study 4 Figure 1. Radius Map (1/2 Mile, 2 Mile, 3 Mile) 2 Mile 1/2 Mile 3 Mile Households with Children Approximately 46%, or 6,021, households are households with children within the 3-mile area. This figure is important because families are the primary consumers of the open recreation time. Open recreation swim is the highest revenue generator for the facility. Figure 3 shows the houshold population by radius. The full demographic analysis of the population residing within 3 miles can be found in the Appendix. DRIVE TIMES While distance in miles from the site provides useful information, for some communities, drive times are more informative. Typically, drive times of 10, 15, and 20 minutes are used to define the primary, secondary and tertiary markets for a recreation facility. The market analysis that follows studies each of these market segments. Figure 4 shows the drive time boundaries The Sports Management Group

22 5 Bethel School District Aquatic Center Study Figure 2. Total Population By Radius 0-1/2 Mile 1/2-2 Mile 2-3 MIle 2010 Census 1,738 16,103 19, Estimate 1,760 16,894 21, Projection 1,800 17,888 23,819 Growth % 24.1% 53.9% Growth % 4.9% 9.3% Growth % 5.9% 9.7% Figure 3. Household Population By Radius 0-1/2 Mile % 1/2-2 Mile % 2-3 MIle 2010 Census 573 5,263 6, Estimate 593 5,498 7, Projection 618 5,817 7,837 Growth % 26.3% 54.4% Growth % 4.5% 8.3% Growth % 5.8% 9.2% Households w/ Children* Average Household Size % 2,536 46% 3,214 45% % However, in consideration of the size of the Bethel School District, the willingness of the population to accept longer drive times, and the site of the proposed aquatic center, frequent users are expected to come from the primary and the secondary area. Frequent users are defined as those using the facility at least twice per week, or 110 times per year as defined by the National Sports Goods Association (see page 13). Those residing within a 20-minute drive time comprise the tertiary market. The 15-minute drive time is assumed the outer limit for frequent users. This does not mean that users will not come from these outer reaches but this population is expected to use the center less frequently. Distance decay, the influence of distance upon potential usage, is considered a factor beyond the 15-minute drive time. Accessibility & Mobility When addressing the issue of distance, the accessibility and mobility of the population are factors to consider. Accessibility refers to systems of roadways for access by automobile, the availability of public transit to the site, bikeways, and pedestrian access via trails and sidewalks. Mobility refers to the ease by which a person at a specified location can reach and make use of a facility. (Koenig, J.G Indicators of Urban Accessibility). A potential weakness of the site is the lack of sidewalks and bike paths, which limits bike and pedestrian access. Distance Decay Distance decay refers to the inverse relationship of distance to the facility and possible usage by residents such that the greater the distance, the lower the participation. Distance decay is an important consideration when projecting the market penetration of residents who live near the facility. This study uses drive time demographic segments to project participation The Sports Management Group

23 Bethel School District Aquatic Center Study 6 Figure 4. Drive Time Map (10, 15, 20 Minutes) Tacoma Lakewood Puyallup Spanaway olympia 0-10 Minutes 0-15 Minutes 0-20 Minutes At minutes of drive time, distance decay may be a factor. For this reason, this population is perceived as destination users -- those who are not likely to be frequent users. There are, however, some activities that will draw participants from greater drive times for special reasons. This includes those attracted to 50-meter long course swimming, participation on a swim team, or a special activity or event. A survey conducted in 2013 by Leisure Vision asked respondents the number of minutes (one way) households would drive to use a new indoor aquatic center if it had the features they would use most often. Eleven percent (11%) responded 9 minutes or less, 29% would drive minutes, and 46% responded minutes. Fourteen percent (14%) responded that they would not use it at all. However, the survey 2014 The Sports Management Group

24 7 Bethel School District Aquatic Center Study did not report crosstabs that would have indicated the frequency each of these respondent groups would use the facility. In the opinion of The Sports Management Group, the population residing beyond a 15-minute drive time are more likely to be infrequent or destination users. MARKET AREA DEMOGRAPHICS Population Projections The larger primary, secondary and tertiary market areas have experienced growth similar to the general School District population (see Figure 5). Between , the secondary market area experienced a population increase of 31.7%. This number is projected to grow another 6.9%, from a current population estimate of 127,736 to 136,577 in More dramatically, the primary market area underwent a population increase of 37.6% between the 2000 and 2010 Census, and is projected to grow another 7.5% between , from 56,633 to 60,897. The size and growth of the population are important considerations when projecting participation. Figure 5. Total Population By Drive Time 0-10 Min Drive Time 0-15 Min Drive Time 0-20 Min Drive Time 2010 Census 53, , , Estimate 56, , , Projection 60, , ,030 Growth % 31.7% 28.0% Growth % 6.0% 5.4% Growth % 6.9% 6.5% Age Groups Younger and middle age adults, as well as children, form the core age group populations within all market areas (see Figure 6). Family Forming Adults, those between the ages of 21-44, comprise the largest age group segment. Within the primary market area, 33.5% of the population falls within the category of Family Forming Adults, and within the secondary and tertiary areas, 33.2% and 33.8% are Family Forming Adults, respectively. This cohort ensures new consumers of swim lessons and recreational use. Parent-tot classes, water adaptation, pre-school learn-to-swim, and toddler beach time are examples of classes that appeal to this market segment. Children (ages 0-20) make up the second largest segment, at 32.1%, 31.4%, and 30.9% within the primary, secondary, and tertiary radii. Mature Adults (those aged 45-54) make up a lesser share of the market area populations, at 25%-25.3% of the market area populations. Retirement Age adults (ages 65 and over) represent the smallest age group segment of the market areas, at 2014 The Sports Management Group

25 Bethel School District Aquatic Center Study 8 9.4% to 10.3% of the total populations. This population is likely to be interested in warm water exercise classes such as water walking against a current, or participating in Silver Splash, an insurance-paid program for senior fitness. The higher proportion of the Family-Forming Adults and children within all market areas suggests the likelihood of high interest/demand in aquatic programming targeting children and families. Households with Children Family Households make up a significant share of the population within all market areas, with the primary market area (0-10 minutes) holding the highest proportion. The high percentage of family households creates a large target market for a family-oriented aquatics facility. Anywhere from 40.6% (tertiary market area) to 44.1% (primary market area) of all households are households with children, as shown in Figure 7. Figure 6. Population by Age Group (Drive Time) 0-10 min 56,633 % 0-15 Min 127,736 % 0-20 Min 230,989 % Children 18, % 40, % 71, % Pre-School (4 & Under) 4, % 9, % 17, % Youth (5-14) 8, % 18, % 33, % Teens (15-20) 5, % 11, % 20, % Family-Forming Adults 18, % 42, % 78, % , % 7, % 13, % , % 17, % 33, % , % 17, % 31, % Mature Adults 14, % 32, % 57, % , % 18, % 31, % , % 14, % 25, % Retirement Age 5, % 12, % 23, % 65 and over 5, % 12, % 23, % 2014 Median Age The Sports Management Group

26 9 Bethel School District Aquatic Center Study Roughly 78% (14,616) of all households are family households within the primary market area (Figure 8); family households comprise roughly 76% (33,005) and 73% (58,896) of all households within the secondary and tertiary market areas, respectively. In addition, family households are expected to increase another 7.2% within the primary market area over the next five years. Income With all market areas demonstrating a low percentage of families below poverty and a median household income above the State average, the hypothetical aquatic facility fees are likely to be affordable for most families. Households earning under $50,000 comprise roughly 33.7% % of the market area populations, the largest segment, and lowest in income (see Figure 9). Despite this, reported median household income ranges from $65,468 to $59,229 between the primary and tertiary market areas, which is in-line with or above the 2012 state median of $56,444 reported by Washington State s Office of Financial Management. 3 Families below poverty comprise 5.3% to 7.1% of all families, shown in Figure 10. (Households within the primary Figure 7. Population by Households (Drive Time) 0-10 Min % 0-15 Min % 0-20 Min % 2010 Census 17,829 41,399 77, Estimate 18,862 43,511 80, Projection 20,208 46,315 86,057 Growth % 32.9% 27.6% Growth % 5.1% 5.0% Growth % 6.5% 6.3% Households w/ Children* 8, % 18, % 32, % Average Household Size Figure 8. Family Households (Drive Time) 0-10 Min 0-15 Min 0-20 Min 2010 Census 13,807 31,354 56, Estimate 14,616 33,005 58, Projection 15,673 35,195 62,661 Growth % 29.0% 23.7% Growth % 5.3% 5.1% Growth % 6.6% 6.4% *Defined as households with one or more persons under the age of The Sports Management Group

27 Bethel School District Aquatic Center Study 10 market area earn slightly more than those within the furthest driving distance, and have a slightly lower percentage of families living below poverty.) Although families living below poverty may use the facility, they are likely to pay a reduced rate or attend on a scholarship. The calculation of market penetration for the sale of passes to households with children (families) removes those living below poverty. Education The populations within all aquatic center market areas are well educated. Approximately 91% of those over the age of 25 hold at least a high school diploma (or GED) within the primary market area (see Figure 11). This percentage is slightly lower within the secondary and tertiary market areas, at roughly 90%. There is high correlation between education and participation in recreation activities, including regular fitness and enrichment classes, suggesting that the higher a community s education level, the more interest there will be in recreation activities. 4 In addition, those who are highly educated tend to have diverse recreation interests when compared to those who are not as highly educated. Children of highly educated parents are more likely to be enrolled in after-school enrichment activities than those whose parents are not highly educated. This suggests that water fitness classes, fitness swimming, and masters swim will be of interest to the adult market. Children s offerings should be varied and provide learning opportunities and skill development. Figure 9. Household Income (Drive Time) Figure 10. Poverty (Drive Time) Families Below Poverty 0-10 Min 0-10 Min % % 0-15 Min 0-15 Min % 0-20 MIn % 2, % 5, % % 0-20 MIn < $50,000 6, % 15, % 33, % $50,000 - $75,000 $75,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 4, % 11, % 18, % 3, % 6, % 11, % 2, % 4, % 7, % 1, % 2, % 4, % $150,000+ 1, % 2, % 4, % Average HH Income Median HH Income $73,841 $73,404 $69,551 $65,468 $64,059 $59,229 % % Families Below Poverty w/ Children % 1, % 4, % 2014 The Sports Management Group

28 11 Bethel School District Aquatic Center Study Figure 11. Educational Attainment (Drive Time) SWIM LESSONS Total Persons 25 Years And Over Some High School or Less High School Graduate or GED Some College or Associate Degree 0-10 Min % 0-15 Min % 0-20 Min 35,372 80, ,722 3, % 7, % 15, % 12, % 27, % 49, % 14, % 31, % 56, % % Kinder Swimmer Located 6.1 mi, 11 min. drive time from site th St S, Spanaway, WA (253) kinderswimmer.com Kinder Swimmer offers children/adult swim lessons and birthday parties (slogan is teaching children to swim with confidence! ). The facility includes an indoor recreation pool with warm water (92 degrees). Instruction is $20 / class, membership fee $35 / year for whole family. Bachelor s Degree 3, % 9, % 16, % Graduate or Professional Deg. Service Provider Analysis 1, % 4, % 7, % To estimate the capacity of the market to serve the demand for swimming, The Sports Management Group completed an inventory of private, public, and commercial aquatic service area providers within the Bethel School District area (see Appendix for full list). Although there are a number of service providers offering swim instruction within a minute driving distance of the aquatic center site, the only commercial swim center providing swim lessons within the School District boundaries is Kinder Swimmer, located in Spanaway. There are no comparably-sized competitive pools within the School District boundaries or within a 30-minute drive time. There are two distant locations with 8-lane pools that are two lanes smaller than Option 2 presented in the Financial Analysis. A brief description of these locations follows, along with a map in Figure 12. COMPETITIVE SWIM Curtis Aquatic Center Located 18.2 mi, 33 min. drive time from site th St. West University Place, WA Owned and operated by the University Place School District, the Curtis High School Aquatic Center is a newly renovated 8-lane x 25-yard lap pool with adjacent dive well and spectator seating for 550. It is home to University Place Aquatic Club and Curtis HS teams and hosts the University Place School District swim and safety program, offered free of charge to all school district 2nd, 5th, and 8th graders. It offers lap / open swim and swim lessons. Lap swim and water aerobics single admission: $3.50 / Jan-June Pass $175. Public swim: $3.50, Family: $10.50 (6 & up, under 5 free). Swim lessons: $45.50 / seven lessons The Sports Management Group

29 Bethel School District Aquatic Center Study 12 Figure 12. Service Provider Map: 8-Lane Competitive Pools UPS Wallace pool curtis aquatic center kinder swimmer th Ave. East 5 Mile Radius 2014 The Sports Management Group

30 13 Bethel School District Aquatic Center Study University of Puget Sound Wallace Pool Located 19.3 mi, 30 min. drive time from site 1500 North Warner St. Tacoma, WA, Built in 1957, the Wallace Pool is an indoor 8-lane lap pool (25- yard x 25-meter) with 1-meter and 3-meter diving boards. There is a separate sauna. The center hosts the school s diving team, swim team, synchronized swimming. It is open to the public for lap and family swim and is also used by Masters and USA Swimming teams. Activities include Lifeguard Training and First Aid classes. NSGA Projections NSGA METHODOLOGY Every year, The National Sporting Goods Association (NSGA) conducts a national survey that measures the annual number of participants in a variety of sports / recreational activities and the frequency of participation during the prior year (source: Respondents are asked if they, or a member of their household over the age of 7, have participated at least once in each of 47 specific sports/recreation activities in the prior year. Swimming is one of these activities. The NSGA defines a swimming participant as one who participates at least six times per year. If a respondent reported swimming one to five times, they were not included in Total Participants. The 1-5 Day Only swimmer is reported separately. PARTICIPANT PROJECTIONS The NSGA estimated that there were 48,621,000 participants across the U.S. that participated in swimming in The U.S. total population ages 7 and over in 2012 was 285,533,000; therefore, the derived percentage of the population who participated in swimming was 17%. If this percentage is applied to the Bethel School District population of 100,548, 5 approximately 17,093 members of the population participate in swimming.* While 17,093 is a useful overall estimate, it is more useful for the purposes of this study to project the number and percentage of potential users by age group and the frequency of use for the Bethel School District. The NSGA percentage by age was derived using the raw swimming participant age group totals found in the NSGA Sports Participation Report. 6 The District population total of 100,548 and breakdowns by age group were applied to these national swimming rates to show projected swim participation by age group. These breakdowns, along with the total, are shown in Figure 13. *While other studies have cited the Pacific Region swimming participation rates, TSMG chose to use the national rate, as characteristics of the Bethel School District area are in line with those of the general nation, in relation to swimming. NSGA defines the Pacific Region as Alaska, Hawaii, California, Oregon, and Washington. For swimming, the Pacific Region has an index of 92, meaning its numbers are 92% of the national average. Considering the proximity of Bethel School District to waterways, the upscale demographics of the region, and a number of other factors, TSMG believes that the District performs closer to the national average rather than below The Sports Management Group

31 Bethel School District Aquatic Center Study 14 Figure 13. Swim Participants District Population # % 0-4 (0-6) 7, % National Swimming Rates (NSGA) Projected to Bethel Swim Population 5-9 (7-11) 7, % 13.2% 2, (12-17) 15, % 13.6% 2,325 NSGA also provides historical participation percentages that are used to project participation. A frequent participation rate is 110+ visits, occasional is visits, and infrequent is 6-24 visits. For swimming, the frequent participation rate is 6.3%, the occasional rate is 44.5%, and the infrequent rate is 49.2%. Less than six visits are not considered. Participation is the number of participants times the level of frequency. A calculation of the swimming participations for the Bethel School District population is provided in Figure 14, along with estimated projections. It is important to note that these estimates are total participations for swimming -- at any location, public or private -- within the Bethel School District population, and not estimates of total participations for the proposed aquatic center (18-24) 6, % 10.5% 1, , % 13.2% 2, , % 15.6% 2, , % 14.4% 2, , % 10.5% 1, , % 9.1% 1,555 Total 100, % 100.1% 17,110 Figure 14. Swim Participations National Rate of Participation Estimated Participants Frequency Participations Frequent 6.3% 1, ,456 Occasional 44.5% 7, ,161 Infrequent 49.2% 8, ,459 Total 100.0% 17, , The Sports Management Group

32 15 Bethel School District Aquatic Center Study The Sports Management Group first examines the area s age group distribution to detect any anomalies beyond what would be expected from our point-of-view as recreation facility consultants, such as a large percentage of seniors due to the inclusion of a large retirement facility or a low percentage of children in an urban area. The NSGA application of participation rates then defines the limits of participation rates in any kind of pool, body of water, anywhere. The NSGA question simply asked if someone in the household aged six or older had participated in swimming in the last year. It is assumed that this would include those who swam in the ocean, on a cruise ship, in a river, at a local recreation center, etc. This metric is a consideration when choosing the estimate of the market penetration rate for daily ticket sales and annual pass sales by age groups. It is useful to consider the maximum number of participations per age group as well as the number of each group who are likely to be frequent (110+ times a year, or at least two times a week), occasional (25 times a year, or at least twice a month) or infrequent users (six times a year, or at least once every two months). Frequent users are more likely to buy an annual pass for the price advantage for themselves or their families. Occasional users may buy annual passes depending on the value added to the pass. Infrequent users are more likely to be the bulk of the daily ticket sales. These metrics are also considered when choosing the estimate of the market penetration rate for sales The Sports Management Group

33 03 Space Program

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35 Bethel School District Aquatic Center Study 16 Space Program Developing the Program The District requested the development of a space program based upon District parameters, an assessment of needs, and market research. The facility must, among other things, (1) achieve the District s educational objective of teaching children to swim and to be water-safe, (2) support girls and boys interscholastic high school swimming and diving, and (3) adhere to a business model that is financially viable and sustainable. The determination of the amount of cost recovery that constitutes financial viability and sustainability is a decision that must be made by the School District. Indoor aquatic facilities, like stadiums and performing arts theaters, do not generate sufficient revenue to pay all their operating costs. The benefits of providing aquatic instruction and activities for students, and serving the community, must be weighed against the capacity and willingness to financially support an aquatic center and program. For the purpose of this study, the space program must provide appropriate facilities for: Learn-to-swim and water safety Competitive aquatics Fitness swimming and water exercise Therapeutic and rehabilitative aquatics Recreation for children and families Physical education for traditionally enrolled and home schooled Senior adult water exercise Two space program options were developed and tested using the District s criteria. Both options have three bodies of water a competitive / fitness / instructional pool, a multi-use warm water recreation pool, and a soaking hot tub. The variable for both options is the size of the competitive / fitness / instructional pool: Option 1 has a 20-lane 25-yard x 50-meter pool with a bulkhead (moveable wall) and Option 2 has a 10-lane 25-yard x 25-meter pool. The District s requirement that four high school swim and dive teams train simultaneously necessitates a 50-meter pool to have sufficient lane capacity. Option 2 does not meet the requirement for simultaneous training but is provided for additional information. Option 1: Competition Pool (20-Lane, 25-Yard x 50-Meter with Bulkhead) The rectilinear pool needed for competitive swimming and diving has very specific requirements. It must be 75 in one direction for short course swimming and have a pool depth of 2 meters or 6-7 at the starting blocks. The depth at the 1-meter diving boards must be a minimum of 12 and the shallow end, which is used for flip turns, cannot be less than 3-6 with 4 or 4-6 preferred. For some, the ability 2014 The Sports Management Group

36 17 Bethel School District Aquatic Center Study Girl s Swimming Sept Nov 1 Boy s Swimming Nov Mar 1 Girls & Boy s Water Polo Nov - Mar to perform starts at both ends of the pool is important, necessitating a 6-7 depth at both ends of the 75 course. The water temperature typically ranges between a cool 78º to 81º. Hard training swimmers generate a great amount of body heat, necessitating colder water that can be uncomfortable to non-swimmers. The water temperature makes this pool less than optimal for introductory water adaptation and basic learn-to-swim programs. The District s high schools currently have three girls swim teams. The District s expectation is that over time, the high school aquatic participation will grow to three girls and three boys swimming and diving teams. A major consideration for the size of the competitive pool is the number of lanes needed for high school swim practice. This is a clear case where more is better. Four to six swimmers typically swim in one lane during training, which lasts approximately two hours. If each team has 30 swimmers with 6 swimmers to a lane, 15 lanes are needed to accommodate all three high schools at the same time. This does not include diving needs, which uses the equivalent of three lanes. The need for lanes is exacerbated by the District s long range plan to add a fourth high school and a fourth girls and boys swimming and diving teams. This increases the lane requirement to 20 lanes, if each team has 30 swimmers. Providing the capacity for the three or four swim teams and divers to practice simultaneously is ideal but costly. The common solution is for two teams to train Monday and Wednesday from 2:30pm to 4:30pm and Tuesday and Thursday from 4:30pm to 6:30pm. The other two teams are on the alternating schedule. The downside is that all the lanes are in use until 6:30pm and unavailable for public swim, lessons, or club swim team rentals. The District envisions a shallow water 50-meter pool. The intent is to provide maximization of the pool for learn-toswim classes. Conceptually, the design would provide a maximum depth of 12 for 1-meter high school diving. The diving area would slope up to a depth of 7 to provide 8-10 lanes with a depth of 7. This provides the short course (the 25-yard direction) racing area. The pool bottom would continue to slope up to a depth of 3-6 or 4, creating approximately 75 of shallow water. The shallow water creates some programming flexibility; however, there are also compromises. The 78º-81º water temperature is very cold to a non-swimmer. The learn-toswim lessons will be more desirable in the warm-water recreation pool. The recreation pool has the capacity to meet the expected demand for these classes. The 50-meter pool will be a teaching pool for advanced skills, pre-competition swim team, deep water fitness, lap swim, and masters swim where the participants are moving quickly in the water and need the lower temperature water. The shallow 50-meter is a potential back-up should lessons grow beyond the expected demand and capacity of the recreation pool. However, parents will likely seek lessons in a warmer water pool elsewhere. The quality of the instruction and the child s comfort and willingness to participate will impact the consumer choice of pool for lessons The Sports Management Group

37 Bethel School District Aquatic Center Study 18 Long course swimming (swimming the 50 meter length) is also somewhat comprised. Deep water is associated with fast water deep water quells the action of turbulence in the water. The pool is unlikely to attract first tier events and the shallow water may reduce the number of competition rentals. These factors were considered in developing the revenue projections for this pool. Water Polo Boys and girls water polo teams could be developed, and the sport has very specific requirements. The minimum pool size for a regulation pool using floating goals is 30 meters of all deep water (2 meters or 6-7 ). If all existing high schools developed teams and if the goal is simultaneous practice, 120 meters would be required for regulation water polo and an additional 50 meters would be required to provide 20 lanes for the swim teams. Providing that amount of indoor pool(s) is not financially feasible or sustainable. Determining the Space Program When developing a space program, one approach is to start with the needs, build a program to meet those needs and the capital costs and operating subsidy are what they are. A more typical approach is to begin with a capital budget and/or an acceptable level of operating subsidy and develop a space program that meets the financial parameters. With the requirement for simultaneous team training, the lane requirement dictates the size of the pool. The operating costs and revenue potential for the 50-meter pool option was studied and is presented in the Financial Analysis section of this report. Support spaces for the pool include spectator seating for 500, spectator entrance, meet management room, concession stand and spectator restrooms. 25-meter lap pool shown above, bottom. 50-meter pool shown above, top The Sports Management Group

38 19 Bethel School District Aquatic Center Study Recreation Pool The recreation pool is a multi-use pool with waterslides, sprays, current channel, play structure, lap lanes, and beach entry. The pool is typically heated to 86º to 88º, which is very comfortable for non-swimmers and supports warm-water exercise, lessons, and therapeutic programs. Although the pool is ideal for family fun, it is thoughtfully designed to provide 10 to 12 teaching stations for learn-to-swim and toddler watersafety. The popularity of recreation pools is attributable to the fact that it engages large segments of the community and generates the majority of the aquatic center revenue. A popular program associated with the recreation pool is children s birthday parties so two divisible party rooms appear in the space program. These can also be used for classes, meetings, rentals, and support space for swim meets. Space Program The detailed space programs for the aquatic center appear on the following pages. The first column is a description of the space, and the second column is the net assignable square footage. This is the space within the walls of the room. At the end of the listing of spaces, a grossing factor was added. The grossing factor is an allowance for the space required for hallways and other circulation, mechanical and electrical rooms, custodial closets, thickness of walls, additional storage, and service areas. A space program for the 50-meter option (Option 1) and the 25-meter option (Option 2) are provided. The programs are followed by trends in aquatic design. Shown above, recreation pool features such as sprays and current channels provide multi-use opportunities and programming for large segments of the community The Sports Management Group

39 Bethel School District Aquatic Center Study 20 Figure 15. Option 1: 50-Meter x 25-Yard Competition Pool, Recreation Pool & Soaking / Hot Tub A. Building Support Space NASF Entry Vestibule 120 Pre-Control Entry Lobby 300 Reception Counter / Access Control / Registration 200 Viewing / Waiting / Staging Lobby 500 Public Lobby Restrooms (2) 150 Events / Meeting Room A (Divisible) 900 Events / Meeting Room B (Divisible) 900 Events / Meeting Room Storage - Shared 150 Vending Alcove 100 Shower/Toilet/Locker Rooms - Men's 1,500 Shower/Toilet/Locker Rooms - Women's 1,600 Shower/Toilet/Locker Rooms - Team 900 Shower/Toilet/Locker Rooms - Team 900 Special Needs/Family Changing (6@100sf each) 600 Family Changing Locker Vestibule 300 Maintenance Workroom / Storage / Laundry 500 Subtotal Building Support Spaces 9,620 B. Aquatic Center Administrative Offices NASF Aquatics Center Director 140 Business Services 120 Aquatic Program Coordinator 110 Aquatic Staff Office (Shared) 150 Customer Service Lead 100 Building and Pool Maintenance Technician 100 Lifeguard Breakroom 350 Workroom / Supplies 180 Subtotal Administrative Offices Spaces 1,250 C. 50 Meter x 25 Yard Pool w/ Bulkhead Natatorium NASF 50M x 25Yd Pool Natatorium (10 &15' decks ) 22, Lane Competition, Training and Teaching Pool Incl. Comp Pool Event Entry Vestibule 120 Comp Event Lobby 600 Concession Stand 80 Spectator Seating (9sf/person) for 500 4,500 Meet Management / Classroom 300 Public-Spectator Restroom - Women & Men 600 Heater / Filtration / Chemical 1,900 Pool Storage 500 Subtotal 50 Meter w/ Bulkhead Pool Natatorium 30,850 D. Multi-Use Recreation Pool Natatorium NASF Recreation Pool Natatorium (15' decks) 12,000 Recreation Pool (5,500 sq. ft. water surface) Incl. Heater / Filtration / Chemical 800 Recreation Activity Pool Storage 200 Soaking / Hot Tub (200 sq ft. water surface) Incl. Subtotal Recreation Pool Natatorium 13,000 Subtotal Net Assignable Building Area (Rounded) 54,700 Natatorium Grossing Factor (85% Efficiency) 7,600 Building Grossing Factor (75% Efficiency) 4,100 Total Gross Building Area Square Footage 66, The Sports Management Group

40 21 Bethel School District Aquatic Center Study Figure 16. Option 2: 10-Lane 25-Meter x 25-Yard Competition Pool, Recreation Pool & Soaking / Hot Tub A. Building Support Space NASF Entry Vestibule 120 Pre-Control Entry Lobby 300 Reception Counter / Access Control / Registration 200 Viewing / Waiting / Staging Lobby 500 Public-Spectator Restrooms (2) 200 Events / Meeting Room A (Divisible) 900 Events / Meeting Room B (Divisible) 900 Events / Meeting Room Storage - Shared 150 Vending Alcove 100 Shower/Toilet/Locker Rooms - Men's 1,500 Shower/Toilet/Locker Rooms - Women's 1,600 Special Needs/Family Changing (6@100sf each) 600 Family Changing Locker Vestibule 300 Maintenance Workroom / Storage / Laundry 500 Subtotal Building Support Spaces 7,870 B. Aquatic Center Administrative Offices NASF Aquatics Center Director 140 Business Services 120 Aquatic Program Coordinator 110 Aquatic Staff Office (Shared) 150 Customer Service Lead 100 Building and Pool Maintenance Technician 100 Lifeguard Breakroom 350 Workroom / Supplies 180 Subtotal Administrative Offices Spaces 1,250 C. 10 Lane x 25 Yard Pool Natatorium NASF 25 Yd Pool Natatorium (10' & 15' decks) 11, Lane Competition, Training and Teaching Pool Incl. Comp Pool Event Entry Vestibule 120 Comp Event Lobby 600 Concession Stand 80 Spectator Seating (9sf/person) for 500 4,500 Meet Management / Classroom 300 Public-Spectator Restroom 600 Heater / Filtration / Chemical 900 Pool Storage 400 Subtotal 25 Yard Pool Natatorium 18,500 D. Multi-Use Recreation Pool Natatorium NASF Recreation Pool Natatorium (15' decks) 12,000 Recreation Pool (5,500 sq. ft. water surface) Incl. Heater / Filtration / Chemical 800 Recreation Activity Pool Storage 200 Soaking / Hot Tub (200 sq ft. water surface) Incl. Subtotal Recreation Pool Natatorium 13,000 Subtotal Net Assignable Building Area (Rounded) 40,600 Natatorium Grossing Factor (85% Efficiency) 5,400 Building Grossing Factor (75% Efficiency) 3,600 Total Gross Building Area Square Footage 49, The Sports Management Group

41 Bethel School District Aquatic Center Study 22 Aquatic Design Trends Data based on a US Census Bureau questionnaire indicates that swimming is the most popular form of recreation for children and teens (ages 7-17), with at least 301 million annual visits to swimming pools. 7 A variety of studies provide evidence of the importance of swimming as a leisure activity. In response to this tremendous demand, aquatic facilities and programming have changed dramatically in recent years to better serve the public. The Regional, All-Inclusive Aquatic Center As cities across the country face increased costs for services and declining revenues, many park and recreation agencies are being directed to reduce, and in some cases eliminate, operational subsides for services. This has forced recreation departments to make changes in the delivery of recreation services. This is especially true of aquatic programs, which historically required substantial operating subsidies. To lower operating costs, cities and districts across the country are consolidating resources into larger, all-inclusive aquatic/recreation facilities, many with space for multi-purpose, community, and fitness activities. These regional fullservice centers can provide greater services for less operating cost. This centralization of facilities is seen not only with new facilities that are being developed nationally, but also with the number of renovations that remove a traditional pool and replace it with a two or three pool complex. Water Exercise Not only is swimming popular, but there is increasing demand for water exercise, which is reported to have a higher percentage of growth in participation than all other forms of water activity. Water exercise is just that - exercise performed in the water. Exercises can be performed with or without pool equipment (such as float devices), and in differing depths of water. With water supporting up to 90% of one s body weight, persons of all ages and abilities can achieve movement in the water. Further, since exercises can be performed in shallow or deep water, it encourages nonswimmers to participate. The benefits of water exercise have long been known among physicians, pain clinics, athletic trainers and other healthcare professionals The Sports Management Group

42 23 Bethel School District Aquatic Center Study Studies have demonstrated the benefits of water exercise for rehabilitation, injury prevention and pain management. Arthritis patients, as an example, have an increased range of motion and more flexibility in water that allows them to improve their physical condition. For the Bethel School District s older adults, the benefits of water exercise can be immeasurable. In order to better serve this aging population and to provide aquatic therapy programs, community aquatic facilities have developed pools with warm-water areas designed to support these programs. Often the area for therapy is incorporated into the leisure pool, which typically is maintained at a water temperature suitable for aquatic therapy. Older adults and persons in need of therapy are not the only residents that can benefit from water exercise: there is also a growing trend to extend the appeal to younger fitness enthusiasts by offering a variety of programs such as water boxing and deep water walking and running. Family Aquatic Centers The origins of the family aquatic center in the United States can be traced to the early 1980 s. Around that time, communities began rethinking the traditional pool that is a rectangular body of water, possibly with a diving well, bordered by a thin ribbon of concrete and encircled by a tall fence. The family aquatic center responded to a need for increased and more varied programming and accessibility and decreased density. Features such as a zero-depth (beach) entry, water slides, leisure and activity areas, and interactive water play features provide the attraction for families. These features are critical to the annual participation and the financial success of the facility. It is the entertainment value that attracts users and drives the frequency of use. Today, the increasing aquatic recreational needs and interests of the public are pushing these concepts further. Public facilities are adding elements that, a decade ago, were found only in commercial water parks. Elements such as lazy rivers, themed activity structures, wave pools and raft rides are now commonplace in regional family aquatic centers. The state-of-the-art family aquatic center incorporates picnic areas, birthday party rooms and packages, an array of play features and conveniences for families including ample deck or lawn for families and groups to spend a day at the pool. In short, the family recreation pool is a social gathering place for the entire community The Sports Management Group

43 Bethel School District Aquatic Center Study Financial Analysis 2014 The Sports Management Group

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45 Bethel School District Aquatic Center Study 24 Financial Analysis The financial analysis presents the probable operating costs and the revenue potential for the 50-meter pool option. The financial analysis is based on a series of assumptions that include hours of operation, fees and charges, programming and scheduling priorities, and staffing levels. To perform the financial analysis, The Sports Management Group scheduled each space in the facility with the uses, classes, and activities that reflect the mission and goals of the District or are indicated based on the market analysis. To provide the District an understanding of the range of operating costs, revenue potential, and cost recovery, a 10-lane 25-yard x 25-meter pool was also studied. This option serves many of the program requirements; however, it does not have the lane capacity for simultaneous high school training. Conversely, since it is half the size of the 50-meter it has a lower operating cost and higher cost recovery. The assumptions underlying the analysis are listed in the Appendix. Probable Operating Costs The major expense categories for the operation of an aquatic center are salaries and benefits, utilities and chemicals, repairs and maintenance, supplies, marketing, and capital reserves. A brief discussion of these expense categories follows. Salaries, Taxes, & Employee Benefits Salaries, taxes, and employee benefits typically represents approximately 55% - 60% of the operating cost. The quality of staff will have a profound impact on the utilization and financial performance of the facility. Professional management and aggressive marketing will affect the number and type of events hosted at the facility, in addition to driving class enrollments and recreational uses. It is the intent of the District to operate the facility employing District staff. Salary and hourly rates are based upon comparable positions at publicly operated aquatic facilities in Washington. Utilities & Chemicals The second largest expense category for this building type is utilities and chemicals. Utility costs include electricity, gas, water, sewer, and refuse disposal. To manage these costs, the financial analysis assumes that the building will employ energy-efficient design and will use pool covers nightly. To estimate the costs, a pool mechanical engineer calculated the units of electricity, gas, and water that would be consumed daily to operate the proposed pools. District utility rates were applied to the daily consumption and annualized to project the yearly cost. Chemical costs were calculated based on water volume and the water filtration rates. Over 50% of the utility cost is the expense of heating, ventilating, and dehumidifying the air within each pool enclosure The Sports Management Group

46 25 Bethel School District Aquatic Center Study Repairs & Maintenance Repairs and maintenance is the next highest expense category. The staffing model includes facility operations personnel who will perform many of these services. Specialized services, such as electrical repairs or maintenance and repair of complex mechanical system may be performed by District staff or an outside contractor and are included in the estimated annual expense. The cost for repairs and maintenance is expected to be lower than the expense shown in year 1 when the facility is new and building systems and equipment are under warranty. The low figure reflects the baseline for anticipated expense in year 2 and 3. Marketing & Promotions Build it and they will come will apply to a small portion of the market and to some of the aquatic center s activities. The pro forma that follows includes a budget for marketing and promotion of the facility, rentals, activities, and classes. The operating assumption is that the District s communication office will provide substantial marketing assistance. The pro forma includes a cost allocation for additional marketing activities and a part-time marketing staff. Capital Reserve The projected operating expense includes an annual allocation to a capital reserve set-aside account. This account provides funding for major repairs or renewal of the building systems, pools and aquatic center features. The reinvention of the facility with new features is important for maintaining a competitive edge and market share. District Administrative Costs The operational costs in this analysis do not include District administrative support services (e.g. legal, finance, human resources, communications, IT) or administrative support recharges. The probable annual costs for the operation of the aquatic center are provided in Figures 17 and 18. The detailed expenses are provided in the Appendix. The expenses are presented in a range from low to high expense and stated in 2014 dollars. Expenses are expected to reflect the low end of the range when the facility opens. As the programs and participation grow, so will the operating costs. The total probable cost of operation for Option 1 ranges from $1,845,000 to $1,962,000. Option 2 expenses range from $1,666,000 to $1,776,000. Materials & Supplies Materials and supplies include general goods required for the programs and management of the facility, i.e. office supplies, staff shirts, lifeguard uniforms, birthday party supplies, etc The Sports Management Group

47 Bethel School District Aquatic Center Study 26 Figure 17. Option 1 (50-Meter): Probable Operating Costs Salaries & Benefits Low High Full-Time Salaries Aquatic Center Manager $75,000 $87,000 Aquatics Coordinator $46,000 $53,000 Guest Services Supervisor $32,000 $37,000 Business Services $46,000 $53,000 Building and Pool Maintenance Technician $48,000 $56,000 Subtotal Full-Time Salaries $247,000 $286,000 Subtotal FT Employee Benefits (32%) $79,000 $92,000 Part-Time Employee Salaries Marketing and Social Media $16,000 $16,000 Cashiers $100,000 $100,000 Building & Pool Maintenance Worker $14,000 $14,000 Head Lifeguards $25,000 $25,000 Lifeguards $301,000 $304,000 Swim Instructors $78,000 $78,000 Fitness Instructors $17,000 $17,000 Party Coordinator $12,000 $12,000 Birthday Party Staff $7,000 $8,000 Custodial Staff $46,000 $52,000 Subtotal PT Employee Salaries $616,000 $626,000 Subtotal PT Employee Taxes (17%) $105,000 $106,000 Subtotal Salaries and Benefits $1,047,000 $1,110,000 Operating Expenses Low High Operating Expenses Training and Uniforms $8,000 $8,000 Voice/Data and Support $8,000 $9,000 Supplies and Materials $52,000 $58,000 Pool Chemicals $67,000 $70,000 Repair and Maintenance $100,000 $111,000 Marketing and Promotions $20,000 $20,000 Utilities $336,000 $349,000 Bank Charges and Capital Outlay $54,000 $64,000 Building Reserves $75,000 $75,000 Subtotal Operating Expenses $798,000 $852,000 Total Probable Operating Costs $1,845,000 $1,962, The Sports Management Group

48 27 Bethel School District Aquatic Center Study Figure 18. Option 2 (25-Meter): Probable Operating Costs Salaries & Benefits Low High Full-Time Salaries Aquatic Center Manager $75,000 $87,000 Aquatics Coordinator $46,000 $53,000 Guest Services Supervisor $32,000 $37,000 Business Services $46,000 $53,000 Building and Pool Maintenance Technician $48,000 $56,000 Subtotal Full-Time Salaries $247,000 $286,000 Subtotal FT Employee Benefits (32%) $79,000 $92,000 Part-Time Employee Salaries Marketing and Social Media $16,000 $16,000 Cashiers $100,000 $100,000 Building & Pool Maintenance Worker $14,000 $14,000 Head Lifeguards $25,000 $25,000 Lifeguards $301,000 $304,000 Swim Instructors $78,000 $78,000 Fitness Instructors $17,000 $17,000 Party Coordinator $12,000 $12,000 Birthday Party Staff $7,000 $8,000 Custodial Staff $46,000 $52,000 Subtotal PT Employee Salaries $616,000 $626,000 Subtotal PT Employee Taxes (17%) $105,000 $106,000 Subtotal Salaries and Benefits $1,047,000 $1,110,000 Operating Expenses Low High Operating Expenses Training and Uniforms $8,000 $8,000 Voice/Data and Support $8,000 $9,000 Supplies and Materials $52,000 $58,000 Pool Chemicals $43,000 $45,000 Repair and Maintenance $92,000 $102,000 Marketing and Promotions $20,000 $20,000 Utilities $222,000 $231,000 Bank Charges and Capital Outlay $52,000 $61,000 Building Reserves $50,000 $50,000 Subtotal Operating Expenses $619,000 $666,000 Total Probable Operating Costs $1,666,000 $1,776, The Sports Management Group

49 Bethel School District Aquatic Center Study 28 Revenue Potential Revenue generated from the operation of the aquatic center is derived from fees for admission, instructional programs, fitness classes, pool rentals, lap lane rentals to non-district teams, merchandise sales, and vending. Methodology To project participation and the revenue potential attendant to the various types of activities, a number of methods were used. These included: 1. Analysis of demographic data to understand the size and characteristics of the market and to make general conclusions about the market. Demographic data is used to estimate the likely demand for and participation in aquatic classes, programs and activities. 2. Application of NSGA survey data to Bethel School District demographics. This provided a basis upon which to estimate the number of participants, the frequency of use, and the maximum potential market. The inventory of service providers in the market catchment area aided in estimating market share. 5. Our expertise developed from 26 years of planning, forecasting and observing pools and their operation. This includes benchmarking pools and exchanging operational and financial data with hundreds of pool operators over the years. Revenue Summary Revenue potential for Options 1 and 2 are summarized and presented in Figures 19 and 20. Revenue is identified by pool and income category. Estimates of revenue for Option 1 range between a low of $1,251,000 to a high of $1,624,000. This is an increase of $26,000 to $54,000 over Option 2 with revenue potential of $1,225,000 as the low, and $1,570,000 as the high. The detailed revenue budget is found in the Appendix. The revenue estimates do not include income from the School District for its instructional program, physical education, or use by the three existing high schools for swim team training and competitions. The value of the unrealized income ranges between $149,400 and $159,600. The value is based on the assumption that there are three girls and three boys swim and dive teams. For other assumptions, see the detail in the Appendix. 3. Results from the Leisure Vision survey of District residents. Survey data was used to quantify program demand and priorities. 4. Application of current trends in programming, facility design, and user needs, to the Bethel School District and resident use The Sports Management Group

50 29 Bethel School District Aquatic Center Study Figure 19. Option 1 (50-Meter): Revenue Potential All figures are rounded to the nearest thousand and are stated in 2014 dollars. Figure 20. Option 2 (25-Meter): Revenue Potential All figures are rounded to the nearest thousand and are stated in 2014 dollars. Low High Low High Option 1: 50M Competition Pool Daily Admissions $3,000 $5,000 Annual Passes $10,000 $14,000 Classes and Programs $66,000 $81,000 Team Rentals $63,000 $95,000 Masters and Recreation Team $39,000 $52,000 Subtotal 50M Competition Pool $181,000 $247,000 Recreation Pool Daily Admissions $463,000 $621,000 Annual Passes $31,000 $41,000 Classes and Programs $464,000 $579,000 Parties and Rentals $103,000 $125,000 Subtotal Recreation Pool $1,061,000 $1,366,000 Miscellaneous Merchandise (Net) $5,000 $6,000 Vending (Net) $4,000 $5,000 Subtotal Miscellaneous $9,000 $11,000 Total Revenue Potential $1,251,000 $1,624,000 Option 2: 25M Competition Pool Daily Admissions $3,000 $5,000 Annual Passes $10,000 $14,000 Classes and Programs $51,000 $60,000 Team Rentals $57,000 $71,000 Masters and Recreation Team $36,000 $45,000 Subtotal 25M Competition Pool $157,000 $195,000 Recreation Pool Daily Admissions $463,000 $621,000 Annual Passes $31,000 $41,000 Classes and Programs $464,000 $579,000 Parties and Rentals $103,000 $125,000 Subtotal Recreation Pool $1,061,000 $1,366,000 Miscellaneous Merchandise (Net) $5,000 $5,000 Vending (Net) $3,000 $4,000 Subtotal Miscellaneous $7,000 $9,000 Total Revenue Potential $1,225,000 $1,570, The Sports Management Group

51 Bethel School District Aquatic Center Study 30 Fees and Charges Proper pricing is essential to building a satisfied customer base while generating sufficient revenue to offset operating costs. It is important that fees reflect the amenities offered and provide acceptable rates to the intended market. Rates for recreational swim, fitness, and classes must encourage participation by the market but must be set at a price point that considers the high cost of providing these services. To estimate the revenue potential, fees assumptions were developed. The full list of fees is found in the Appendix. Fees for daily admission, annual passes, lessons, and lap fees are shown in Figure 21. These fees are based upon comparables for similar facilities in Washington--primarily the Snohomish School District Aquatic Center, the Lynnwood Recreation Center (for the recreation pool pricing), and the Federal Way Recreation and Swim Center. annual Pass Sales and Daily Admission Sales Figure 21. Fees & Charges Open Recreation & Lap Swim Drop-In Rate Age Group Infants Per Session No Charge Child (2-6) $4.50 Youth (7-18) $5.00 Adult (19-64) $5.50 Senior (65+) $4.50 Family $17.50 Lap Lane Rental - Competition Pool Group Bethel SD Non-BSD High School $15 Public & Non-Profit $17 Private $19 Lane Per Hour No Charge Revenue from the sale of annual passes is estimated to range between $41,000 to $55,000, after sales tax. Annual passes are sold as a convenience and cost saving for those who use the facility frequently, and on a yearround basis. Seventy-five percent of the sales, or $31,000 to $41,000, are expected to be sales to families using the recreation pool. The revenue from the sale of a daily admission is a major source of revenue for the aquatic center, generating between $466,000 and $626,000 of annual revenue. These sales are primarily attributable to the use of the Annual Pass Rates Age Group Infants Swim Lessons (1/2 Hour) Type 2-Week Group Lessons (8 Sessions) Rate Child (2-6) $288 Youth (7-18) $360 Adult (19-64) $432 Senior (65+) $288 Family $640 Fee Private (Per Session) $30 No Charge $48 ($6 ea) recreation pool during Open Recreation. Open recreation occurs in two-hour blocks of time, fifteen times per week. Typically, four occur weekdays and the remaining eleven are scheduled Friday, Saturday, and Sunday. During open recreation the water slides and play features are operating and 300 participants, mostly children, use the pool for one hour and forty- five minutes. Then, the pool is cleared 2014 The Sports Management Group

52 31 Bethel School District Aquatic Center Study and the next 300 guests are admitted. The revenue is based on an estimate of 93,000 daily admissions as the low, to a high of 124,000 daily admissions annually. This is an average participation of 124 to 165 for each open recreation swim. The low number is conservative and the upper number is achievable, based upon the experience of other facilities in the region, the population totals and age group breakdown within a 15-minute drive time, and the lack of service providers. Lynnwood Community Recreation Center serves as a case study provided on the following page. Lynnwood is a community of approximately 36,000, located in southwest Snohomish County. In April 2011, the Lynnwood center re-opened with a renovated and expanded aquatic center, including a new 5,500sf recreation pool. Since it s opening, open recreation attendance is reported to be at, or near, capacity with over 200,000 open recreation participants annually. An estimated 166,000 participants pay a drop-in admission fee and the remainder are passholders. Lynnwood reports weekend visitors from as far as Olympia--nearly 80 miles away. Lynnwood straddles the junction between Interstate 5 and the north end of Interstate 405 providing good freeway access. Within a 15-minute drive time of the center, there are 18,970 children between the ages of 5 and 14 years and an additional 9,760 persons ages 4 and under. Within 20 minutes there are 33,241 children between the ages of 5-14 and 17,312 ages 4 years and under. This is the target market for recreational play and for the learn-to-swim classes. Of this total, 13,018 live within a 10-minute drive time of the proposed center. The frequency of participation is typically higher among population residing within close proximity to the facility. Within the School District boundaries, Kinder Swimmer is the only commercial provider that competes for the learn-to-swim market share (see Service Providers Analysis on page 11). This, along with the above demographics, indicate that there is a sufficient market of participants to achieve the projected revenue. That said, the site lacks the desired driveby visibility to a large population that selfadvertises the center. Marketing the facility and good directional signage could heighten awareness and increase use to achieve the higher sales figures. The daily admission estimates are validated by the Leisure Vision survey results that reported 46% of households used an indoor aquatics center in the past 12 months and 81% of those uses were recreation. Of the 46%, 24% used the pools 5-10 times, 22% visited and 18% times. Other survey results suggest 44% would use an indoor pool for recreational swimming. The survey did not report the percentage of households with children. The NSGA survey data indicates that 49.2% of swimmers are infrequent users (6-24 times a year) and 44.5% are occasional swimmers with uses a year. These participation rates indicate the majority of participants are recreational swimmers. Recreation Pool The recreation pool generates the greatest amount of revenue for the aquatics center and helps to offset some of the operating subsidy required by the 50-meter or 25-meter pool. In addition to daily admissions and pass sales, other sources of revenue are from learn-toswim and fitness lessons, birthday parties, and pool rentals. Total revenues associated with this pool range from a low of $1,061,000 to a high of $1,366,000. To realize this revenue it is necessary to design the recreation pool with a high degree of entertainment and play value The Sports Management Group

53 Bethel School District Aquatic Center Study 32 Case Study: Lynnwood Aquatic & Recreation Center Facility Description Located in the City of Lynnwood, which reports a 2010 Census population of 25,836, the Lynnwood Center is a recreation center with a cardio and weight room, wood floor studio, racquetball courts, classrooms, and aquatics. The aquatics center includes a recreation pool with two water slides, lazy river, water playground, and family hot tub. It also includes a 6-lane lap pool, sauna, and warm-water therapy pool. Revenue The total 2013 revenue for the full center was $1,825,862. The portion of revenue attributable to aquatics is as follows:* Aquatics Revenue Daily Drop-In $429,856 Fitness Pass $24,993 Annual Pass $208,750 Swim Lessons, Classes $358,132 Party Room Rentals $54,951 Recreation Pool Rentals $139,428 3rd Grade Learn-To-Swim Contract $30,000 Total Aquatics Revenue 2013 $1,246,110 *65% is the percentage the Recreation Superintendent cited as attributable to Aquatics. Total Participations for Open Recreation Open Recreation Participations , ,481 Swim registrations ( ): 8,171 Chemicals (2013): $46,324 open Recreation periods: 802 utilities (2012): $284,487 Source: Joel Faber, Recreation Superintendent City of Lynnwood Parks, Recreation & Cultural Arts Department Information received February 19, The Sports Management Group

54 33 Bethel School District Aquatic Center Study Features such as water slides, current channels, fountains, zero-depth entry, and other play features are extremely popular for the drop-in user. These pools attract children between the ages of 2 to 13 and are a big draw to families with young children. On weekends throughout the year, a recreation pool is an entertainment destination, attracting families from greater distances than the 15-minute drive time. The recreation pool must be thoughtfully designed to provide teaching space for up to 10 simultaneous learn-to-swim classes, warmwater group fitness, senior splash and many more programs and classes. Revenue for non- District classes is estimated to range between $464,000 to $579,000. The budget includes 7,640 to 9,660 swim lesson enrollments. Birthday parties and small group rentals are popular and a significant source of revenue, and serve as advertising for the center. Revenue potential is estimated to range from $103,000 to $125,000. Competition Pool The revenue potential for the 50-meter pool is estimated to range from $181,000 to $247,000. Revenue for the 25-meter option is estimated to range from $157,000 to $195,000. The revenue is primarily attributable to lane rentals to non-district teams for training and competition. The revenue is expected to grow as USA swim teams develop. Other revenue will be generated from development of a master s swim team and a summer recreation team. It will likely take several years to build these teams. Revenue for the swim teams ranges between $39,000 to $52,000 for the 50-meter pool and $36,000 to $45,000 for the 25-meter pool. The remainder of the revenue is generated from classes and special events The Sports Management Group

55 Bethel School District Aquatic Center Study 34 Cost Recovery Figures 22 and 23 detail three scenarios of cost recovery potential. High cost recovery is determined by dividing the highest total revenue potential by the lowest probable operating expenditures. Low cost recovery is determined by dividing the lowest total potential revenue by the highest probable operating expenditures. Average cost recovery is determined by dividing the average total potential revenue by the average probable operating expenditures. Based on the preceding expense and revenue analysis, which reflects the consultant s conservative approach to the overall analysis, it is The Sports Management Group s opinion that Option 1 will require an operating subsidy of $600,000 to $650,000. Over a three year period this may be reduced to $400,000 to $500,000. Option 2 also requires an operating subsidy. The estimated range is between $400,000 to $450,000. Over a three to four year period, this subsidy could be reduced to $200,000 to $300,000. Figure 22. Option 1 (50-M): Cost Recovery Potential Low average high Expense & Revenue Recap Probable Operating Costs $1,845,000 $1,903,500 $1,962,000 Potential Revenue $1,251,000 $1,437,500 $1,624,000 Cost Recovery Annual Subsidy ($711,000) ($466,000) ($221,000) Cost Recovery 63.8% 75.5% 88.0% Figure 23. Option 2 (25-M): Cost Recovery Potential Low average high Expense & Revenue Recap Probable Operating Costs $1,666,000 $1,721,000 $1,776,000 Potential Revenue $1,225,000 $1,397,500 $1,570,000 Cost Recovery Annual Subsidy ($551,000) ($323,500) ($96,000) Cost Recovery 69.0% 81.2% 94.2% 2014 The Sports Management Group

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57 05 Scheduling Analysis

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59 Bethel School District Aquatic Center Study 35 Scheduling Analysis Introduction An essential component of the aquatic facility study was the development of pool schedules. The schedules identify the specific use by day of week, hour of day, and season of the year. This scheduling analysis was used to test the capacity of the pool to serve its intended purposes, identify scheduling conflicts, and to perform the financial analysis. The School District provided a listing of classes and the assumptions to be used for the high school teams. The priority uses were scheduled in the pools, followed by the scheduling of activities and classes that support the mission and cost recovery objectives of the School District. Scheduled uses are estimates of future (not existing) programs to test the capacity of the pools. The classes, lessons, USA Swim Team, and lane rentals are representative of the typical programming for this type of an aquatic center. Schedule Assumptions The School District has the following program requirements: Fall, Winter and Spring Seasons All District 2nd graders provided lessons from 9am-10am All District 4th graders provided lessons from Noon-1pm All District 6th graders provided lessons from 7:30am-8:30am Physical Education class for one hour (high school) Three (grow to 4) High School Swim Teams Boys and Girls to train simultaneously 2:30-4:30pm daily HS Water Polo to practice during the same time period (2:30-4:30pm) Competition Pool School District times are dedicated with no public swim or programs scheduled in the competition/training pool during that time. The 50-meter pool has 20 short-course (25 yard) lanes with six swimmers per lane. The assumption is that each High School Swim team has 30 swimmers (teams to be developed) and each school will require five lanes resulting in 15 lanes for high school team practices and 3 lanes for dive program. For grade school swim lessons, the maximum number of participants is 120 students per half hour with six students per lane. The schedule for the 25yd x 25 meter 10 lane pool option was studied and would require two high school swim teams to train for a two hour period followed by the next two high school swim teams, with the pool scheduled from 2:30-6:30pm daily. This is a dedicated block of time for high school competitive swim team and dive team use. High school water polo would not be able to practice at this same time The Sports Management Group

60 36 Bethel School District Aquatic Center Study Competition pool rentals for meets are made available through advanced scheduling and notification to the public because the pool is closed to the public during the rental period. Closing the competition pool during open recreation swim times reduces participant capacity and revenue so the financial impacts of rentals must be carefully considered. Recreation Pool The design of the recreation pool should provide teaching stations for swim lessons. Swim lesson classes are 30 minutes. This pool is ideal for swim lessons because of its shallow water ranging from a zero depth beach to 2-6 to 4. The water temperature of this pool is typically 86º making it very comfortable for the participants. During classes the water features are not operating. Party rentals are scheduled during public recreation swim sessions. Public recreation swim sessions are open to all ages with all the pool play features operating. Overflow and additional water space is provided in the competition/training pools as the schedule allows. The availability of the competition/training pools to support recreation swim sessions will factor into the total attendance for each session. Recreation swim is scheduled in two-hour blocks with 15 minutes for turnover to accommodate more users. There is potential for private rentals prior to or after hours on Sunday. Hours of Pool Operation* All Pools Monday-Friday 5:30am - 9:00pm Saturday 8:00am - 8:00pm Sunday 12:00pm - 6:00pm *Note: Pools do not open until 5:30am Schedule Legend Non-Operating Hours (Number) = Number of Pool Lanes Public Programming Rec Swim & Open Lap School District Programming Soaking Hot Tub The soaking hot tub is for drop in use and has not been scheduled or programmed. It is typically used in conjunction with river walk, fitness classes, open recreation, and lap swim The Sports Management Group

61 Bethel School District Aquatic Center Study 37 Figure Meter Pool Summer Schedule 4AM MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY 5AM 6AM Masters (4), Open Lap (4) 7AM Dive Class (3), Open Laps (2) 8AM Exercise (6) Pre-Comp (4) Exercise (6) Pre-Comp (4) Exercise (6) USA Swim Team (6), Open Lap (2), 9AM Masters (4) 10AM Lessons (3), Lap Swim (2) 11AM Exercise (10) Semi-Private Lessons (2), Special Classes (4) 12PM Masters (4), Open Lap (4) 1PM Rec Swim 2PM 3PM 4PM 5PM 6PM USA Swim Team (6), Lane Rental (2), Open Lap (2) USA Swim Team (6), Summer Swim Club (3), Open Lap (2) USA Swim Team (6), Lane Rental (2), Open Lap (2) USA Swim Team (6), Summer Swim Club (3), Open Lap (2) Rec Swim, Open Lap (2) Rec Swim, Open Lap (2) Rec Swim, Open Lap (2) 7PM 8PM Water Polo or Synchro (10), Rec Swim (4) Exercise (10), Open Lap (2), Rec Swim (4) Masters (4), Rec Swim (4) Water Polo or Synchro (10), Rec Swim (4) Exercise (10), Open Lap (2), Rec Swim (4) Masters (4), Rec Swim (4) 9PM 2014 The Sports Management Group

62 38 Bethel School District Aquatic Center Study Figure Meter Pool Fall, Winter, & Spring Schedule 4AM MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY 5AM 6AM Masters (4), Open Lap (4), Exercise 6:30-7:30 (6) 7AM 6th Grade 7:30-8:30 8AM USA Swim Club (6), 9AM 2nd Grade 2nd Grade 2nd Grade 2nd Grade 2nd Grade Masters (4), Open Lap (2) 10AM High School PE (8) High School PE (8) High School PE (8) High School PE (8) High School PE (8) Semi-Private Lessons (2), Lap swim (2), Stroke Clinic 11AM Swim Lessons (4), Exercise (6) Swim Lessons (4), Class (6) Swim Lessons (4), Exercise (6) Swim Lessons (4), Class (6) Swim Lessons (4), Exercise (6) 12PM 4th Grade, Lap swim 4th Grade, Lap Swim 4th Grade, Lap Swim 4th Grade, Lap Swim 4th Grade, Lap Swim 1PM Lap Swim/Masters Lap Swim/Masters Lap Swim/Masters Lap Swim/Masters Lap Swim/Masters 2PM 3PM 4PM 2:30-4:30pm HS Girls Swim Team (15), Boys Swim Team (15), Diving (3) (Share with Waterpolo until teams grow) High School swimming and diving ends March 1. Open swim time March through May. Rec Swim, Open Lap (2) Rec Swim, Open Lap (2) 5PM USA Swim Team (6), Open Laps (2), Team Synchro or Water Polo (12) 6PM 7PM 8PM Rec Swim, Open Lap (2), Open Diving (3) Team Synchro or Water Polo (12), Pre-Comp (4) Rec Swim, Open Lap (2), Open Diving (3) Team Synchro or Waterpolo (12), Pre-Comp (4) Rec Swim, Open Lap (2), Open Diving (3) 9PM 2014 The Sports Management Group

63 Bethel School District Aquatic Center Study 39 Figure Yard x 25-Meter Summer Schedule 4AM MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY 5AM Masters (4), Open Lap (2) 6AM 7AM Diving (3), Summer Club (4) Summer Swim Club (4), Exercise (6) Diving (3), Summer Club (4) Summer Swim Club (4), Exercise (6) Diving (3), Summer Club (4) 8AM Water Fit Water Exercise Water Fit Water Exercise Water Fit USA Swim Team (6), Open Lap (2), 9AM Masters (4) 10AM Lessons (2), Pre-Comp (4) 11AM Water Exercise Water Fit Water Exercise Water Fit Water Exercise Semi-Private Lessons (4), Open Lap (2) 12PM Masters (4), Open Lap (2) 1PM Rec Swim 2PM 3PM 4PM 5PM USA Swim Team (6), Club Rental (2) USA Swim Team (6), Club Rental (2) USA Swim Team (6), Club Rental (2) USA Swim Team (6), Club Rental (2) Rec Swim, Open Lap (2) Rec Swim, Open Lap (2) Rec Swim, Open Lap (2) 6PM Water Aerobics, Open Lap Masters, Lap Swim Water Aerobics, Open Lap Masters, Lap Swim 7PM 8PM Rec Swim, Open Lap (2) 9PM 2014 The Sports Management Group

64 40 Bethel School District Aquatic Center Study Figure Yard x 25-Meter Fall, Winter, & Spring Schedule 4AM MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY 5AM Masters (4), Open Lap (2) 5:30-6am 6AM Pre-comp (4), Masters (4), Open Lap (2) Exercise (6), Open Lap (2) Pre-comp (4), Masters (4), Open Lap (2) Exercise (6), Open Lap (2) Pre-comp (4), Masters (4), Open Lap (2) 7AM 6th Grade 7:30-8:30 8AM 9AM 2nd Grade 2nd Grade 2nd Grade 2nd Grade 2nd Grade USA Swim (6), Other (2), Open Lap (2) 10AM Deep Water Exercise (6), Open Lap (2) 11AM Swim Lessons Swim Lessons Swim Lessons Swim Lessons Swim Lessons Water Polo / Synchro 12PM 4th Grade 4th Grade 4th Grade 4th Grade 4th Grade 1PM High School PE High School PE High School PE High School PE High School PE 2PM 3PM 4PM 5PM 2:30-6:30 High School Swim Teams Rec Swim, Open Lap (2) Rec Swim, Open Lap (2) 6PM 7PM 8PM USA Swim (6), Other (2), Masters (2) USA Swim (6), Other (2), Masters (2) USA Swim (6), Other (2), Masters (2) USA Swim (6), Other (2), Masters (2) Rec Swim, Open Lap 9PM 2014 The Sports Management Group

65 Bethel School District Aquatic Center Study 41 Figure 28. Recreation Pool Summer Schedule 4AM MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY 5AM Lap Swim Lap Swim Lap Swim Lap Swim Lap Swim 6AM 7AM Lap Swim, River Walk 8AM Senior Fit Aqua Zumba Senior Fit Aqua Zumba Senior Fit 9AM Aqua Zumba, Preschool Beach Water Fit Aqua Zumba, Preschool Beach Water Fit Aqua Zumba, Preschool Beach Aqua Zumba, River Walk Semi/Private Lessons, Preschool Beach 10AM 11AM Group Swim Lessons, Parent & Tot Classes Group Swim Lessons, Parent & Tot 12PM River Walk Senior Fit River Walk Senior Fit Senior Fit 1PM 2PM Rec Swim Rec Swim 3PM 4PM Group Swim Lessons Group Swim Lessons 5PM Group Swim Lessons Group Swim Lessons 6PM Water Fit Water Fit Rec Swim Rec Swim 7PM 8PM Rec Swim 9PM 2014 The Sports Management Group

66 42 Bethel School District Aquatic Center Study Figure 29. Recreation Pool Fall, WInter, & Spring Schedule 4AM MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY 5AM 6AM 7AM Lap Swim, Lazy River Walk Lazy River, Lap Swim Lap Swim, Lazy River Walk Lazy River, Lap Swim Lap Swim, Lazy River Walk 8AM Aqua Zumba Aqua Zumba Lap Swim 9AM Aqua Zumba, Preschool Beach Water Fit Aqua Zumba, Preschool Beach Water Fit Aqua Zumba, Preschool Beach Water Fit 10AM Swim Lessons, Parent & Tot Swim Lessons, Parent & Tot Swim Lessons, Parent & Tot Swim Lessons, Parent & Tot Swim Lessons, Parent & Tot Swim Lessons, Preschool Beach 11AM Senior Exercise, Swim Lessons Senior Exercise, Swim Lessons Senior Exercise, Swim Lessons Senior Exercise, Swim Lessons Senior Exercise, Swim Lessons Swim Lessons, Parent & Tot 12PM 1PM 2PM 3PM 4PM 5PM Lazy River, Lap Swim Parent & Tot, Preschool Beach Homeschool Program Group Swim Lessons Lazy River, Lap Swim Parent & Tot, Preschool Beach Homeschool Program Rec Swim (4) Rec Swim (4) Rec Swim (3) 6PM Aqua Zumba Water Fit Aqua Zumba Water Fit 7PM 8PM Rec Swim 9PM 2014 The Sports Management Group

67 Bethel School District Aquatic Center Study 43 Sources 1. Kendrick, W. Les., Ph.D. Bethel School District Longe Range Projection Update: (23) Mar WA State Dept. Of Health. Center for Health Statistics, Fatal Injury Data Tables, August injury/drowning.aspx 3. State of Washington Office of Financial Management. Median Household Income Estimates by County: 1989 to 2012 and Projection for economy/hhinc/medinc.pdf 4. American Sports Data, Inc. and the International Health, Racquet, and Sportsclub Association. (2000). IHRSA/ASD Health Club Trend Report. Hartsdale, NY: American Sports Data, Inc. 5. Kendrick, W. Les., Ph.D. Bethel School District Longe Range Projection Update: (23) Mar National Sporting Goods Assocation. Sports Participation In The United States: 2013 Edition. Prospect, IL. 7. US Census Bureau. Statistical Abstract of the United States: Arts, Recreation, and Travel: Participation in Selected Sports Activities tables/12s1249.pdf 2014 The Sports Management Group

68 The Sports Management Group th Street, Suite B Berkeley, California

69 Bethel School District Aquatic Center Study Appendix The Sports Management Group APRIL 30, 2014

70 Contents A Demographic Data & Report By Radius B Demographic Data By Drive Time C Aquatic Service Providers Inventory D Option 1 (50-Meter) Budget Detail E Option 2 (25-Meter) Budget Detail F School District Use Summary G Fees & Charges H Lynnwood Center Case Study

71 Bethel School District AQUATICS CENTER STUDY Demographic Analysis Radius Map (1/2 Mile, 2 Mile, 3 Mile) 2 MILE 1/2 MILE 3 MILE TOTAL POPULATION 0-1/2 MILE 1/2-2 MILE 2-3 MILE 2010 Census 1,738 16,103 19, Estimate 1,760 16,894 21, Projection 1,800 17,888 23,819 Growth % 24.1% 53.9% Growth % 4.9% 9.3% Growth % 5.9% 9.7% The Sports Management Group A 1

72 Bethel School District AQUATICS CENTER STUDY POPULATION BY AGE 0-1/2 MILE 1,760 % 1/2-2 MILE 16,894 % 2-3 MILE 21,715 % Children % 5, % 7, % Pre-School (4 & Under) % 1, % 1, % Youth (5-14) % 2, % 3, % Teens (15-20) % % 1, % Family-Forming Adults % 5, % 7, % % % 1, % % 2, % 3, % % 2, % 3, % Mature Adults % 4, % 5, % % 2, % 2, % % 1, % 2, % Retirement Age % 1, % 2, % 65 and over % 1, % 2, % 2014 Median Age HOUSEHOLDS 0-1/2 MILE % 1/2-2 MILE % 2-3 MILE % 2010 Census 573 5,263 6, Estimate 593 5,498 7, Projection 618 5,817 7,837 Growth % 26.3% 54.4% Growth % 4.5% 8.3% Growth % 5.8% 9.2% Households w/ Children* % 2, % 3, % Average Household Size *Defined as households with one or more persons under the age of 18 The Sports Management Group A 2

73 Bethel School District AQUATICS CENTER STUDY FAMILY HOUSEHOLDS 0-1/2 MILE 1/2-2 MILE 2-3 MILE 2010 Census 477 4,169 5, Estimate 493 4,354 5, Projection 512 4,607 6,143 Growth % 22.1% 48.3% Growth % 4.4% 8.4% Growth % 5.8% 9.3% POVERTY 0-1/2 MILE % 1/2-2 MILE % 2-3 MILE % Families Below Poverty % % % Families Below Poverty w/ Children % % % HOUSEHOLD INCOME 0-1/2 MILE % 1/2-2 MILE % 2-3 MILE % Income < $50, % % % Income $50,000 - $75, % 1, % 1, % Income $75,000 - $100, % 1, % 1, % Income $100,000 - $125, % % % Income $125,000 - $150, % % % Income $150, % % % Average Household Income $72,758 $74,264 $74,483 Median Household Income $65,170 $66,853 $66,575 The Sports Management Group A 3

74 Bethel School District AQUATICS CENTER STUDY EDUCATIONAL ATTAINMENT 0-1/2 MILE % 1/2-2 MILE % 2-3 MILE % Total Persons 25 Years And Over 1,119 10,486 13,509 Some High School or Less % % 1, % High School Graduate or GED % 3, % 4, % Some College or Associate Degree % 4, % 5, % Bachelor s Degree % 1, % 1, % Graduate or Professional Degree % % % RACE / ETHNICITY 0-1/2 MILE % 1/2-2 MILE % 2-3 MILE % Total Population By Single Race Class 1,760 16,894 21,715 White Alone 1, % 12, % 14, % Black or African American Alone % 1, % 1, % Amer. Indian & Alaska Native Alone % % % Asian Alone % % 1, % Native Hawaiian & Other Pac. Isl. Alone % % % Some Other Race Alone % % % Two or More Races % 1, % 1, % Not Hispanic or Latino 1, % 15, % 19, % Hispanic or Latino % 1, % 2, % TRAVEL TIME TO WORK 0-1/2 MILE 1/2-2 MILE 2-3 MILE Less than 15 Minutes 111 1,124 1, Minutes 212 1,807 2, Minutes 253 2,605 3, Minutes 173 1,248 1, Minutes ,243 Avg. Travel Time to Work (Min.) The Sports Management Group A 4

75 Demographics by Radius (1/2, 2, 3 Miles) MARKET SERVICE AREA POPULATION PROJECTIONS Although an examination of the school district population provides insight into demographic trends patterns at a larger scale, it is less applicable to the closer market area of the aquatic center site. An examination of those who reside in the primary, secondary, and tertiary market service areas aid in projecting the demand for programs and facilities, participation, and the sale of daily admissions and passes for the general population. The primary service area for this study is the population within the immediate area (half mile) of the Bethel School District Aquatic Center site, identified as th Avenue East, in Spanaway. One-half mile is assumed to be a reasonable walking distance from the facility for children who are a target market for a family-oriented aquatics facility. The secondary service area is between a half mile- and two-mile radius of the site, and the tertiary service area is within a two- and three-mile radius. Three-miles is assumed to be the outer limit for frequent users, those who would likely use the facility at least twice a week (or 110 times a year). The larger (secondary and tertiary) service areas have experienced similar patterns of growth as the general school district population. Between , the secondary service area underwent a population increase of 24.1%. This number is projected to grow, from a current population estimate of 16,894 to 17,888 in More dramatically, the tertiary service area underwent a population increase of 53.9% between the 2000 and 2010 Census. Its population is projected to grow another 9.7% between , from 19,876 to 23,819. Although the school district population and larger services areas have experienced significant growth, population density and growth are relatively low within a closer range of the aquatic center site. Within the primary service area, the 2010 Census reports a population of just 1,738. Between the 2000 Census and 2010 Census, this area experienced a slight population decline of 3.6%. Although this trend has reversed, the population is projected to increase only slightly, to 1,800, by AGE GROUPS Younger and middle age adults, as well as children, form the core age group populations within all aquatic center service areas. Family Forming Adults, those between the ages of 21-44, comprise the largest age group segment. Within a half-mile, nearly 33% of the population falls within the category of Family Forming Adults, and within the secondary and tertiary rings, 34.1% and 34.2% are Family Forming Adults, respectively. Children (ages 0-20) make up the second largest segment, at 30.6%, 32.2%, and 32.4% within the primary, secondary, and tertiary radii. Mature Adults (those aged 45-54) make up a slightly larger share of the primary service area population compared to the secondary and tertiary service areas, at 27% compared to 25.4% and 24.2%, respectively. Retirement Age adults (ages 65 and over) represent the smallest age group segment of the service areas, at 9.3% to 9.7% of the total populations. The populations within the larger service areas are slightly younger than those within a closer radius to the swim center, on average, at a median age of 33.5 compared to The higher proportion of the Family-Forming Adults and children within all service areas suggests the likelihood of high interest/demand in aquatic programming targeting children and families. HOUSEHOLDS WITH CHILDREN Family Households make up a significant share of the population within all service areas. The high percentage of family households creates a large target market for a family-oriented aquatics facility. Roughly 45% of all households are households with children. Roughly 83% of all households are family households within the primary service area; family households comprise roughly 79% and 78% of all households within the secondary A 5

76 and tertiary service areas, respectively. Although this indicates a slightly higher proportion of families within close walking distance of the site, family households within the larger service areas have substantially increased over the last decade, and are projected to increase further. Between the 2000 and 2010 Censuses, family households underwent a 48.3% increase within the tertiary service area, and are expected increase another 9.3% in the next five years. INCOME & FAMILIES BELOW POVERTY With the low level of poverty and the relatively high median income of family households, the recreation facility fees are likely to be affordable for most families. Households earning under $50,000 comprise roughly 32% - 33% of the service area populations, the largest segment, and lowest in income. Despite this, reported median household income ranges from $65,170 to $66,575 between the primary and tertiary service areas, which is above the 2012 state average of $56,444 reported by Washington State s Office of Financial Management. i Families below poverty comprise just 4.3% to 4.7% of all families. This suggests an ability to pay for aquatic programming, although fees must be in-line with market rates. EDUCATION The populations within all aquatic center service areas are well educated. Approximately 93% of those over the age of 25 hold at least a high school diploma (or GED). This percentage is slightly lower within the secondary and tertiary service areas, at roughly 91%. According to the US Census Bureau ACS , this attainment level is slightly above that of the State, in which 90% are high school graduates or higher for those over the age of 25. There is high correlation between education and participation in parks and recreation activities, including fitness and enrichment classes, suggesting that the higher a community s education level, the more interest there will be in recreation activities. ii In addition, those who are highly educated tend to have diverse recreation interests when compared to those who are not as highly educated. Children of highly educated parents are more likely to be enrolled in after-school enrichment activities and than those whose parents are not highly educated. This indicates a need to provide a variety of classes, activities, and facilities at the Bethel School District Aquatic Center. TRAVEL TIME TO WORK Average travel time to work is fairly high, at approximately 37 minutes in all services areas. The greatest percentage of the population takes minutes to travel to work, along all service area radii. This may indicate a willingness to travel to an aquatic center, although proximity to major commuting and transportation routes/paths/arterials would be necessary. i State of Washington Office of Financial Management. Median Household Income Estimates by County: 1989 to 2012 and Projection for ii 4. American Sports Data, Inc. and the International Health, Racquet, and Sportsclub Association. (2000). IHRSA/ASD Health Club Trend Report. Hartsdale, NY: American Sports Data, Inc. A 6

77 Bethel School District AQUATICS CENTER STUDY Demographic Analysis Drive Time Map (10, 15, 20 Minutes) TACOMA LAKEWOOD PUYALLUP SPANAWAY OLYMPIA 0-10 Minutes 0-15 Minutes 0-20 Minutes TOTAL POPULATION 0-10 MIN DRIVE TIME 0-15 MIN DRIVE TIME 0-20 MIN DRIVE TIME 2010 Census 53, , , Estimate 56, , , Projection 60, , ,030 Growth % 31.7% 28.0% Growth % 6.0% 5.4% Growth % 6.9% 6.5% The Sports Management Group B 1

78 Bethel School District AQUATICS CENTER STUDY POPULATION BY AGE 0-10 MIN DRIVE TIME % 0-15 MIN DRIVE TIME % 0-20 MIN DRIVE TIME % Children 18, % 40, % 71, % Pre-School (4 & Under) 4, % 9, % 17, % Youth (5-14) 8, % 18, % 33, % Teens (15-20) 5, % 11, % 20, % Family-Forming Adults 18, % 42, % 78, % , % 7, % 13, % , % 17, % 33, % , % 17, % 31, % Mature Adults 14, % 32, % 57, % , % 18, % 31, % , % 14, % 25, % Retirement Age 5, % 12, % 23, % 65 and over 5, % 12, % 23, % 2014 Median Age HOUSEHOLDS 0-10 MIN DRIVE TIME % 0-15 MIN DRIVE TIME % 0-20 MIN DRIVE TIME % 2010 Census 17,829 41,399 77, Estimate 18,862 43,511 80, Projection 20,208 46,315 86,057 Growth % 5.1% 5.0% Growth % 6.5% 6.3% Households w/ Children* 8, % 18, % 32, % Average Household Size *Defined as households with one or more persons under the age of 18 The Sports Management Group B 2

79 Bethel School District AQUATICS CENTER STUDY FAMILY HOUSEHOLDS 0-10 MIN DRIVE TIME 0-15 MIN DRIVE TIME 0-20 MIN DRIVE TIME 2010 Census 13,807 31,354 56, Estimate 14,616 33,005 58, Projection 15,673 35,195 62,661 Growth % 5.3% 5.1% Growth % 6.6% 6.4% POVERTY 0-10 MIN DRIVE TIME % 0-15 MIN DRIVE TIME % 0-20 MIN DRIVE TIME % Families Below Poverty % 2, % 5, % Families Below Poverty w/ Children % 1, % 4, % HOUSEHOLD INCOME 0-10 MIN DRIVE TIME % 0-15 MIN DRIVE TIME % 0-20 MIN DRIVE TIME % Income < $50,000 6, % 15, % 33, % Income $50,000 - $75,000 4, % 11, % 18, % Income $75,000 - $100,000 3, % 6, % 11, % Income $100,000 - $125,000 2, % 4, % 7, % Income $125,000 - $150,000 1, % 2, % 4, % Income $150,000+ 1, % 2, % 4, % Average Household Income $73,841 $73,404 $69,551 Median Household Income $65,468 $64,059 $59,229 The Sports Management Group B 3

80 Bethel School District AQUATICS CENTER STUDY EDUCATIONAL ATTAINMENT 0-10 MIN DRIVE TIME % 0-15 MIN DRIVE TIME % 0-20 MIN DRIVE TIME % Total Persons 25 Years And Over 35,372 80, ,722 Some High School or Less 3, % 7, % 15, % High School Graduate or GED 12, % 27, % 49, % Some College or Associate Degree 14, % 31, % 56, % Bachelor s Degree 3, % 9, % 16, % Graduate or Professional Degree 1, % 4, % 7, % RACE / ETHNICITY 0-10 MIN DRIVE TIME % 0-15 MIN DRIVE TIME % 0-20 MIN DRIVE TIME % Not Hispanic or Latino 56, , ,989 White Alone 40, % 91, % 160, % Black or African American Alone 4, % 9, % 17, % Amer. Indian & Alaska Native Alone % 1, % 2, % Asian Alone 2, % 7, % 15, % Native Hawaiian & Other Pac. Isl. Alone 1, % 2, % 4, % Some Other Race Alone 1, % 4, % 10, % Two or More Races 4, % 10, % 18, % Hispanic or Latino 5, % 12, % 25, TRAVEL TIME TO WORK 0-10 MIN DRIVE TIME % 0-15 MIN DRIVE TIME % 0-20 MIN DRIVE TIME % Workers Age ,508 59, ,385 Less than 15 Minutes 3, % 7, % 16, % Minutes 6, % 16, % 33, % Minutes 8, % 17, % 27, % Minutes 4, % 8, % 13, % 60+ Minutes 3, % 8, % 13, % Avg. Travel Time to Work (Min.) The Sports Management Group B 4

81 BETHEL SCHOOL DISTRICT AQUATIC STUDY Aquatic Service Providers METRO PARKS TACOMA POOLS Norpoint Pool (Metro Parks Tacoma) 4818 Nassau Ave. NE, Tacoma, WA, (253) min. The indoor pool features a beach walk in, mushroom waterfall, three 20-yard lap lanes with a depth of 4 feet. It is maintained at 85 degrees Fahrenheit for Arthritis Classes. Offers swim lessons, open swim, water exercise, lifeguard training, pool parties. Serves Metro Aquatics and city programs. Eastside Community Pool (Metro Parks Tacoma) 3524 East L Street, Tacoma, WA, (253) min. Indoor 25 yard x 6 lane pool offers swim lessons, water exercise, lifeguard training, kayaking, lap swim, and open swim, and birthday party rentals. Features diving board and spa. Admission rates are Youth (ages 5-17 yr) $2.50, Adult (ages 18+ yr) $3.50. Serves Metro Aquatics and city programs. TACOMA SCHOOL DISTRICT Stadium HS Pool (Tacoma School District) 111 N E St Tacoma, WA (253) min. Wally Streeter Pool - Indoor 6 lane x 25 yard pool used for swimming and water polo. Serves public programs and high school teams. Henry Foss HS Pool (Tacoma School District) 2112 South Tyler Street Tacoma, Washington (253) min. 6 lane x 25 yard pool. Serves competitive swimming, public swim lessons. Mt.Tacoma HS 701 S 37th St Tacoma, WA, (253) min. Indoor 25 yard x 6 lane pool offered for competitive swim and lap swim. Serves Metro Aquatics and city programs The Sports Management Group C1

82 BETHEL SCHOOL DISTRICT AQUATIC STUDY Wilson HS 30 min N. Orchard Street Tacoma, WA Serves Metro Aquatics, city programs, and HS teams. YMCA POOLS Pierce County membership provides access to all seven facility branches. Adult Group Exercise Classes included. Youth Programs, such as swim lessons, are included. Membership rates for all locations are as follows: Adult (Age 30+) $56 Young Adult (15-29) $41 Youth $36 Youth (on HH Membership) $18 Maximum Charge/HH/Month $128 Adult Couple $84 Young Adult Couple (15-29) $69 Mel Korum Family YMCA 10.4 mi, 19 min rd Avenue Southeast Puyallup, WA (253) Indoor 25 yard x 6 lane pool, toddler pool (87 degree water, 1-3 ft deep), and hot tub. Offers lap swim, water exercise, open swim, and swim team. Toddler pool offers swim lessons and open swim. Membership fee: $56 (adult), $41 (young adult), $36 (youth), $84 (adult couple), $18 (youth addon). Youth swim lessons, adult lap swim/group exercise included with membership. Hosts Swim for Exceptional Children program. Lakewood Family YMCA 12.9 mi, 22 min Lakewood Dr SW Lakewood, WA Instruction pool, lap pool, sauna, and hot tub. Offers youth swim lessons, adult lap swim/group exercise included with membership. Hosts Swim for Exceptional Children program The Sports Management Group C2

83 BETHEL SCHOOL DISTRICT AQUATIC STUDY COMPETITION / INVITATION MEETS Pacific Lutheran University: Swimming Pool Park Avenue South Tacoma, WA (253) plu.edu 16 min. Home to the PLU Swim Team and available for lap swim and open swim. Pool is an indoor 25 yard x 6 lane pool with diving board. Adult lap swim offered during mornings, lunch, evenings to public, students, faculty, staff. All Age Recreational Swim is open to children (6 years and over) Friday & Saturday evenings. Per swim price is $3.50 to the public ($30 for 10 punch pass). The PLU pool is the center for swim lessons that teach more than 300 community members annually, ROTC water skills and survival training, Bellarmine Prep SCUBA training, Pierce County Fire Department and Red Cross training, as well as year-round use for PLU classes, PLU Swim Team training and competition, and intramural activities. University of Puget Sound Wallace Pool 30 min North Warner St. Tacoma, WA, Built in 1957, the Wallace Pool is an indoor 8-lane lap pool (25-yard x 25-meter) Pool has 1-meter and 3-meter diving boards. There is a separate sauna. Hosts the school s diving team, swim team, synchronized swimming. Open to the public for lap and family swim. Also used by Masters and USA Swimming teams. Activities include Lifeguard Training and First Aid classes. Curtis Aquatic Center University Place School District th St. West University Place, WA mi, 33 min. Newly renovated 8-lane x 25-yard lap pool with adjacent dive well. Spectator seating for 550. Home to University Place Aquatic Club and Curtis HS teams. Hosts University Place School District swim and safety program, offered free of charge to all school district 2 nd, 5 th, and 8 th graders. Offers lap / open swim and swim lessons. Lap swim and water aerobics single admission: $3.50 / Jan-June Pass $175. Public swim: $3.50, Family: $10.50 (6 & up, under 5 free). Swim lessons: $45.50 / seven lessons The Sports Management Group C3

84 BETHEL SCHOOL DISTRICT AQUATIC STUDY Fife Swim Center th Street East Fife, WA mi / 30 min Main pool is 25 yard x 6 lanes, 2-ft deep wading pool, and hot tub. All are indoor and salt water chlorinated. Drop-in swim fees range $ Offers water exercise, lap swim, open swim, and swim lessons. Home to King Aquatic Club and Blue Wave Aquatics Masters Team. Operated by the City of Fife. Weyerhaeuser King County Aquatic Center (WKCAC) (Federal Way) 650 SW Campus Drive Federal Way, WA min. 50-meter competition pool, 25-yard x 15-yard recreation pool, and banquet hall. Sumner/Bonney Lake Aquatics Pool 1707 Main Street Sumner, Washington (253) min Located at Sumner High School. Features an indoor 25 yard x 45 ft (6 lane) lap pool, with two 1- meter boards. Lap swim $5, open swim $3.50 for one hour. Offers swim lessons, pool parties, open swim, swim instruction, and swim exercise. Home to Valley Aquatics Swim Team and Blue Wave Aquatics Masters Team for practice. Operated by Sumner/Bonney Lake Aquatics (non-profit status pending). LAKEWOOD SCHOOL DISTRICT POOLS Clover Park HS Pool 13.4 mi, 23 min Gravelly Lake Drive Southwest Lakewood, WA (253) cloverpark.k12.wa.us Operated by Clover Park School District. Open to the public for open swim, lap swim, water exercise, swim lessons, pool parties. Indoor 25 yard x 6-lanes, heated with diving board. Swim lessons: $30-$40 for 4-week session, $30 / 6-day session, $22.50 / 3-day session. $3.50 open swim, $30 adult 10-visit punch pass. Water aerobics: $4 senior ($25 10-visit punch pass), $5 adult ($30 10 visits). Pool rental: $110/ 2-hour session, 1-30 people. Lakewood High School Pool Operated by Clover Park School District and used for on-going rental groups (swim club, kayaking, SCUBA) The Sports Management Group C4

85 BETHEL SCHOOL DISTRICT AQUATIC STUDY PUYALLUP SCHOOL DISTRICT POOLS Rogers High School Aquatic Center (Puyallup School District) th Ave East Puyallup, WA mi, 15 min. Indoor 25 yard x 6 lane lap pool with dive well (L shape pool) and 1-meter diving board. Depth ranges 3.5 to 15 and temperature measures degrees. Second pool is a warm-water activity/therapy pool. Main pool has spectator seating for under 500. Home to high school swim team, dive team, water polo, as well as competitive swim groups. Offers open swim, lap swim, lessons, water exercise, and camps. $ General admission $ Senior admission Lap Swim Fees Open to people 12 and older. General Admission...$3.50 Senior Citizens...$3.25 Aqua Aerobic Fees Structured exercise program open to people 16 and older. General Admission...$4.25 Senior Citizens...$4.00 Pool Passes 25 admissions...$ (good for any program but lessons) Passes are non-refundable. Lessons: 62.50; see website for registration times and days Puyallup High School Pool (Puyallup School District) 105 7th Street SW Puyallup, WA, mi, 21 min. Heated 25 meter x 6 lane indoor pool (L shape) with diving board. Open to the public. Hosts high school teams and competitive swimming. Offers swim lessons, lap swim, open swim, adult water polo, lifeguard training. Open/Lap Swim $3.00 Children Age 5 and Under Free w/adult Senior Open/Lap Swim $2.75 Aqua Aerobics $3.75 Senior Aqua Aerobics $3.50 Pool Pass (25 visits) $ The Sports Management Group C5

86 BETHEL SCHOOL DISTRICT AQUATIC CENTER 50 METER - OPTION 1 April 1, 2014 OPERATING ASSUMPTIONS The assumptions listed below were used to project the annual operating costs and revenue potential for the Bethel School District Aquatic Center. The analysis is based on a 66,400sf building with an indoor 50 meter X 25 yard competition pool with a bulkhead; a 5,500sf recreation pool with lap lanes, teaching areas, and a current channel, two water slide and play features; a soaking / hot tub, and outdoor sprayground. Projections of cost do not include start-up costs and other one-time costs associated with opening a new facility. A preopening budget is in addition to the costs presented in the analysis of operating costs and revenue potential. All costs and revenues are in 2014 dollars. Cost recovery, the percentage of revenue that is generated to offset operating cost, was calculated based on a series of assumption. Changes to any assumption, for example the hours of operation or fees, will change the cost recovery. "Low" cost recovery is the "downside" case, "High" is the best case. Achieving "Average" or the mid-range of programming and participation, is likely to require 3-4 years of operation. OPERATING ASSUMPTIONS Public Hours of Operation Year Round Monday - Friday 5:30 AM - 9:00 PM Saturday 8:00 AM - 6:00 PM Sunday 12:00 PM - 6:00 PM The facility may be scheduled for additional hours for special events, rentals, etc. School District Personnel Operating costs do not include wages or benefit costs for School District personnel teaching K-12 educational classes or coaching high school interscholastic activities. The District will employ all staff. HR, finance, risk managment, IT, and other administrative services will be paid be the District. The pool will employ a full-time operator and pay for custodial services. Maintenance will be provided by District maintenance staff and not charge to the Aquatic Center. School District Use The High School Swim Teams will train during the hours of 2:30pm - 4:30pm Monday - Friday throughout Fall/Winter/Spring. When the School District swim teams are training in the pool, the pool will be closed to the public. USA Swim Team Use During the hours when USA swim teams are practicing in the lap pool, two to three lap lanes will remain open to the public for lap swim. Bethel School District Aquatic Center D.1

87 BETHEL SCHOOL DISTRICT AQUATIC CENTER 50 METER - OPTION 1 April 1, 2014 COST RECOVERY 50 Meter Pool with Bulkhead, 5,500sf Recreation Pool, and Soaking Hot Tub Expense and Revenue Recap Low Average High Probable Operating Costs $1,845,000 $1,903,500 $1,962,000 Potential Revenue $1,251,000 $1,437,500 $1,624,000 Cost Recovery ($711,000) ($466,000) ($221,000) 63.8% 75.5% 88.0% Bethel School District Aquatic Center D.2

88 BETHEL SCHOOL DISTRICT AQUATIC CENTER 50 METER - OPTION 1 April 1, 2014 OPERATING EXPENSES SALARIES AND BENEFITS Full-Time Salaries Low High Aquatic Center Manager $75,000 $87,000 Aquatics Coordinator $46,000 $53,000 Business Services $46,000 $53,000 Guest Services Supervisor $32,000 $37,000 Building and Pool Maintenance Technician $48,000 $56,000 Subtotal Full-Time Salaries $247,000 $286,000 Full-Time Employee Benefits Full-Time Staff Benefits $79,000 $92,000 Subtotal Full-Time Employee Benefits $79,000 $92,000 Part-Time Employee Salaries Marketing and Social Media $16,000 $16,000 Cashiers $100,000 $100,000 Building and Pool Maintenance Worker $14,000 $14,000 Head Lifeguards $25,000 $25,000 Lifeguards $301,000 $304,000 Swim Instructors $78,000 $78,000 Fitness Instructors $17,000 $17,000 Party Coordinator $12,000 $12,000 Birthday Party Staff $7,000 $8,000 Custodial Staff $46,000 $52,000 Subtotal Part-Time Employee Salaries $616,000 $626,000 Part-Time Employee Payroll Tax Part-Time Staff Benefits (17%) $105,000 $106,000 Subtotal Part-Time Employee Payroll Tax $105,000 $106,000 Subtotal Salaries and Benefits $1,047,000 $1,110,000 Bethel School District Aquatic Center D.3

89 BETHEL SCHOOL DISTRICT AQUATIC CENTER 50 METER - OPTION 1 April 1, 2014 OPERATING EXPENSES Low High Travel and Training Staff Travel and Conferences $3,000 $3,000 Training/Certification/Dues $1,000 $1,000 Subtotal Travel and Training $4,000 $4,000 Staff Uniforms All Staff $4,000 $4,000 Subtotal Staff Uniforms $4,000 $4,000 Communication Services Voice and Data $6,000 $6,000 Subtotal Communication Services $6,000 $6,000 Supplies and Materials Office Supplies / Printing / Postage $5,000 $5,000 General Building Supplies $5,000 $5,000 Program Supplies $6,000 $6,000 Program Supplies: Birthday Parties $25,000 $30,000 Merchandise for Resale $3,000 $4,000 Major Equipment / Rentals $8,000 $8,000 Pool Chemicals $67,000 $70,000 Subtotal Supplies and Materials $119,000 $128,000 Custodial Services and Supplies Custodial and Paper Supplies $14,000 $17,000 Subtotal Custodial Services and Supplies $14,000 $17,000 Repair and Maintenance Facility Repair and Maintenance $54,000 $60,000 Major Equipment Repair and Maintenance $10,000 $12,000 HVAC Filter Repacement $20,000 $20,000 Subtotal Repair and Maintenance $84,000 $92,000 Marketing and Promotions Printing, Graphic Support $20,000 $20,000 Subtotal Marketing and Promotions $20,000 $20,000 Service Agreements / Contract Services Safety Equipment $1,000 $1,000 Alarm / Security System $1,000 $1,000 Subtotal Service Agreements / Contract Services $2,000 $2,000 Bethel School District Aquatic Center D.4

90 BETHEL SCHOOL DISTRICT AQUATIC CENTER 50 METER - OPTION 1 April 1, 2014 OPERATING EXPENSES Computer Services Low High Software, Agreements, and Upgrades $2,000 $3,000 Subtotal Computer Services $2,000 $3,000 Utilities Building and Pool Utilities $336,000 $349,000 Water Service and Sewer $73,000 $83,000 Waste Disposal & Recycling Services $5,000 $5,000 Subtotal Utilities $414,000 $437,000 Bank Charges and Miscellaneous Bank Charges $34,000 $44,000 Capital Outlay $20,000 $20,000 Insurance $0 $0 Subtotal Bank Charges and Miscellaneous $54,000 $64,000 Capital Reserve Capital Reserve Fund $75,000 $75,000 $75,000 $75,000 Subtotal Operating Expenses (rounded) $798,000 $852,000 TOTAL OPERATING EXPENSE $1,845,000 $1,962,000 Bethel School District Aquatic Center D.5

91 BETHEL SCHOOL DISTRICT AQUATIC CENTER 50 METER - OPTION 1 April 1, 2014 PROBABLE OPERATING COST DETAIL EMPLOYEE BENEFITS Full-Time District Employee Benefits Hourly Employee Benefits Full-Time Benefits Monthly $247,000 $286,000 Part-Time Salaries $616,000 $626,000 Pecentage of Wages 32% 32% Pecentage of Wages 17% 17% Subtotal $79,040 $91,520 Subtotal $104,720 $106,420 Staff Travel and Conferences TRAVEL AND TRAINING Training/Certification/Dues Annual Allocation $3,000 $3,000 Annual Allocation $1,000 $1,000 Subtotal $3,000 $3,000 Subtotal $1,000 $1,000 Staff Uniforms Annual Allocation $4,000 $4,000 Subtotal $4,000 $4,000 STAFF UNIFORMS COMMUNICATION SERVICES Telecommunications Cell Phones Number of Voice / Data Line 6 7 Number of PDA/Cell 2 2 Avg. Cost per Line per Mont $60 $60 Annual Allocation per Phone $600 $600 Number of Months per Year Subtotal $1,200 $1,200 Subtotal $4,320 $5,040 SUPPLIES AND MATERIALS General Office Supplies Other: Postage and In-House Printing Number of Months per Year Avg. Cost per Year $2,000 $2,000 Avg. Cost per Month $250 $275 Subtotal $2,000 $2,000 Subtotal $3,000 $3,300 General Building Supplies Merchandise for Resale Annual Allocation $5,000 $5,000 Annual Allocation $3,000 $4,000 Subtotal $5,000 $5,000 Subtotal $3,000 $4,000 SUPPLIES: PROGRAM AND POOL CHEMICALS Program Supplies Major Equipment / Rentals Annual Allocation $6,000 $6,000 Annual Allocation $8,000 $8,000 Subtotal $6,000 $6,000 Subtotal $8,000 $8,000 Program Supplies: Birthday Parties Pool Chemicals: Spa No. of Parties per Year Water Surface Sq. Footage Cost per Party $35 $35 Average Cost per Square Foot $3.75 $3.90 Subtotal $25,200 $29,700 Subtotal $750 $780 Pool Chemicals: Recreation Pool Pool Chemicals: 25-Yard x 50 M Lap Pool Water Surface Sq. Footage 5,500 5,500 Water Surface Sq. Footage 12,750 12,750 Average Cost per Sq Ft $3.75 $3.90 Average Cost per Sq. Ft. $3.55 $3.75 Subtotal $20,625 $21,450 Subtotal $45,263 $47,813 Bethel School District Aquatic Center D.6

92 PROBABLE OPERATING COST DETAIL Facility Repair and Maintenance Major Equipment Repair and Maintenance Avg. Cost per Month $4,500 $5,000 Annual Allocation $10,000 $12,000 Number of Months per Year Subtotal $10,000 $12,000 Subtotal $54,000 $60,000 HVAC Filter Replacement/Mainteance Agreement Annual Allocation $20,000 $20,000 Subtotal $20,000 $20,000 Printing, Graphic Support Annual Allocation $20,000 $20,000 Subtotal $20,000 $20,000 Computer Service, Software, Upgrades No. of Computers 8 10 Cost per Computer $300 $300 Subtotal $2,400 $3,000 BUILDING REPAIR AND MAINTENANCE MARKETING AND PROMOTIONS COMPUTER SERVICES SERVICE AGREEMENTS / CONTRACT SERVICES Alarm / Security System Landscape and Grounds - Performed by District Staff Number of Months per Year Contract Maintenance $0 $0 Avg. Cost per Month $70 $80 Subtotal $0 $0 Subtotal $840 $960 Parking Lot Maintenance - Paid by District Safety Equipment Clean-Up Inspections, Service $1,000 $1,000 Slurry Seal, Line Painting Subtotal $1,000 $1,000 Subtotal $0 $0 UTILITIES Building Utilities - Electricity and Gas Natatorium Utilities - 50 Meter Pool Building Net Sq. Ft. 17,000 17,000 Building Net Sq. Ft. 26,500 26,500 Cost per Sq. Ft Cost per Sq. Ft Subtotal $53,550 $55,250 Subtotal $95,400 $100,700 Pool Utilities - 50 Meter Pool Pool Utilities - Recreation Pool Pool Surface Area 12,750 12,750 Pool Surface Area 5,500 5,500 Cost per Sq. Ft Cost per Sq. Ft Subtotal $99,450 $102,000 Subtotal $42,900 $44,000 Natatorium Utilities Recreation Pool Pool Utilities - Hot Tub Building Net Sq. Ft. 12,000 12,000 Pool Surface Area Cost per Sq. Ft Cost per Sq. Ft Subtotal $43,200 $45,600 Subtotal $1,560 $1,600 Water Service and Sewer Waste Disposal & Recycling Services 73,000 83,000 No. of Months Subtotal $73,000 $83,000 Monthly Charge $400 $450 Subtotal $4,800 $5,400 Bethel School District Aquatic Center D.7

93 PROBABLE OPERATING COST DETAIL Custodial and Paper Supplies Avg. Cost per Month $1,200 $1,400 Number of Months per Year Subtotal $14,400 $16,800 CUSTODIAL SERVICES MISCELLANEOUS Bank Charges Capital Outlay 90% of Revenue $1,126,000 $1,462,000 Annual Allocation $20,000 $20,000 Bank Fee Percentage 3.0% 3.0% Subtotal $20,000 $20,000 Subtotal $33,780 $43,860 Insurance District $0 $0 Subtotal $0 $0 RESERVES AND SET-ASIDES Capital Reserve Fund Annual Allocation $75,000 $75,000 Subtotal $75,000 $75,000 Bethel School District Aquatic Center D.8

94 BETHEL SCHOOL DISTRICT AQUATIC CENTER 50 METER - OPTION 1 April 1, 2014 REVENUE BUDGET 25-Yard x 50 Meter Competition Pool Low High Daily Admissions $3,000 $5,000 Annual Passes $10,000 $14,000 Classes and Programs $35,000 $43,000 Water Fitness $31,000 $38,000 Summer Rec Swim Team $12,000 $16,000 Rentals $63,000 $95,000 Masters $27,000 $36,000 Subtotal 25-Yard x 50 Meter Competition Pool $181,000 $247,000 Recreation Pool Daily Admissions $463,000 $621,000 Annual Passes $31,000 $41,000 Classes and Programs $464,000 $579,000 Parties and Pool Rentals $103,000 $125,000 Subtotal Recreation Pool $1,061,000 $1,366,000 Miscellaneous Merchandise Sales $5,000 $6,000 Vending (Net) $4,000 $5,000 Subtotal Miscellaneous $9,000 $11,000 Total Revenue Potential $1,251,000 $1,624,000 Bethel School District Aquatic Center D.9

95 BETHEL SCHOOL DISTRICT AQUATIC CENTER 50 METER - OPTION 1 April 1, Meter X 25 Yard Pool with Bulkhead - Summer Low High Pre-Competitive Avg. No. of Classes offered per Session 1 1 No. of Sessions per Summer 3 3 Avg. No. of Participants per Class Avg. Fee per Participant $100 $100 Subtotal Pre-Competitive $5,400 $6,000 Deep Water Exercise Class Avg. No. of Classes offered per week 4 4 No. of Sessions per Summer Avg. No. of Participants per Class Avg. Fee per Participant $8 $8 Subtotal Deep Water Exercise Class $9,000 $10,800 Semi-Private Swimming Lessons Avg. No. of Lessons No. of Participants per Lesson 2 2 Avg. Fee per Participant $15 $15 Subtotal Semi-Private Swimming Lessons $900 $1,050 Private Swimming Lessons (1/2 Hour) Avg. No. of Individual Lessons Avg. Fee per Lesson $30 $30 Subtotal Private Swimming Lessons $1,200 $1,350 Junior Lifeguard Class Avg. No. of Classes offered per Session 2 2 No. of Sessions per Summer 1 1 Avg. No. of Participants per Class 6 8 Avg. Fee per Participant $75 $75 Subtotal Junior Lifeguard Class $900 $1,200 Lifeguard Classes Avg. No. of Classes offered per Session 1 1 No. of Sessions per Summer 2 2 Avg. No. of Participants per Class 8 10 Avg. Fee per Participant $165 $165 Subtotal Lifeguard Classes $2,640 $3,300 Masters Swim (program) No. of Months per Summer 3 3 Avg. No. of Participants per Month Avg. Fee per Participant per Month $75 $75 Subtotal Masters Swim (program) $6,750 $9,000 USA Swim Team - Short Course Avg. No. of Lane rentals per hour 6 6 Avg. No. of Lane Rental Hours per Week Avg. Weeks per Summer 8 9 Cost per Lane per Hour $17 $17 Subtotal USA Swim Team - Short Course $8,160 $9,180 Bethel School District Aquatic Center D.10

96 50 Meter X 25 Yard Pool with Bulkhead - Summer Low High Lane Rentals - Others Avg. No. of Lane Rentals per Hour 2 3 Avg. No of Hours per Day 2 2 Avg. No of Days per Week 2 2 Avg. Weeks per Summer Fee per Lane per Hour $15 $15 Subtotal Lane Rentals - Others $1,440 $2,160 Other Team Rentals (Club Water Polo/Synchro) Potential Future Programs Avg. No. of Hours per Day 2 2 Avg. No of Days per Week 2 2 Avg. Weeks per Summer Fee per Hour $170 $170 Subtotal Other Team Rentals (Club Water Polo/Synchro) $6,800 $8,160 Summer Recreation Swim Club (8 Weeks) Avg. No. of Participants Avg. Fee per Participant per Summer $200 $200 Subtotal Summer Recreation Swim Club (8 Weeks) $12,000 $16,000 Competition Pool Meet Rental - Short Course Avg. No. of Meets 1 2 Avg. Fee per 2 Hours $600 $600 Subtotal Competition Pool Meet Rental - Short Course $600 $1,200 Invitational Meet Rentals - Long Course Avg. No. of Meets per 1 2 Avg. No. of Days per Meet 1 1 Avg. Fee per Day $2,000 $2,000 Subtotal Invitational Meet Rentals - Long Course $2,000 $4,000 Special Interest Classes Avg. No. of Classes offered per Session 2 2 No. of Sessions per Summer 1 1 Avg. No. of Participants per Class 8 10 Avg. Fee per Participant $75 $75 Subtotal Special Interest Classes $1,200 $1,500 Special Events (Family Night, Teen Night, etc.) Avg. No. of Events per Summer 2 2 Avg. No. of Participants per Event Avg. Fee per Participant $10 $10 Subtotal Special Events (Family Night, Teen Night, etc.) $1,200 $1,500 Total Potential Revenue $60,190 $76,400 Bethel School District Aquatic Center D.11

97 BETHEL SCHOOL DISTRICT AQUATIC CENTER 50 METER - OPTION 1 April 1, Meter X 25 Yard Pool with Bulkhead - Fall/Winter/Spring Low High Pre-Competitive Avg. No. of Classes offered per Session 1 1 No. of Sessions per Fall/Winter/Spring 7 7 Avg. No. of Participants per Class Avg. Fee per Participant $100 $100 Subtotal Pre-Competitive $11,200 $14,000 Deep Water Exercise Class Avg. No. of Classes offered per Session 4 4 No. of Weeks Avg. No. of Participants per Class Avg. Fee per Participant $8 $8 Subtotal Deep Water Exercise Class $22,400 $26,880 Private Swimming Lessons (1/2 Hour) Avg. No. of Individual Lessons Avg. Fee per Lesson $30 $30 Subtotal Private Swimming Lessons (1/2 Hour) $1,500 $1,800 Junior Lifeguard Class Avg. No. of Classes offered per Session 1 1 No. of Sessions per Fall/Winter/Spring 3 3 Avg. No. of Participants per Class 8 10 Avg. Fee per Participant $75 $75 Subtotal Junior Lifeguard Class $1,800 $2,250 Lifeguard Classes Avg. No. of Classes offered per Session 1 1 No. of Classes per Fall/Winter/Spring 2 2 Avg. No. of Participants per Class 8 10 Avg. Fee per Participant $165 $165 Subtotal Lifeguard Classes $2,640 $3,300 Masters Swim (program) No. of Months per Fall/Winter/Spring 9 9 Avg. No. of Participants per Month Avg. Fee per Participant per Month $75 $75 Subtotal Masters Swim (program) $20,250 $27,000 USA Swim Team Rentals FWS Avg. No. of Lane Rentals 6 8 Avg. No. of Days 5 5 Avg. Weeks per Fall/Winter/Spring Cost per Lane per Hour $17 $17 Subtotal USA Swim Team Rentals FWS $15,300 $20,400 Bethel School District Aquatic Center D.12

98 50 METER - OPTION 1 April 1, Meter X 25 Yard Pool with Bulkhead - Fall/Winter/Spring Low High Other Team Rentals (Club Water Polo/Synchro) Potential Future Program Avg. No. of Hours per Day 2 2 Avg. No of Days per Week 2 4 Avg. Weeks per Fall/Winter/Spring Fee per Hour $170 $170 Subtotal Other Team Rentals (Club Water Polo/Synchro) $20,400 $40,800 Invitational Meet Rentals (all day) Avg. No. of Meets per Fall/Winter/Spring 2 2 Avg. No. of Days per Meet 1 1 Avg. Fee per Day $2,000 $2,000 Subtotal Invitational Meet Rentals (all day) $4,000 $4,000 Half Day Meet Rentals Avg. No. of Meets per F/W/S 4 5 Avg. No. of Days per Meet 1 1 Avg. Fee per half day $1,100 $1,100 Subtotal Revenue $4,400 $5,500 Special Interest Classes Avg. No. of Classes offered per Session 2 2 No. of Sessions per Fall/Winter/Spring 2 2 Avg. No. of Participants per Class Avg. Fee per Participant $75 $75 Subtotal Special Interest Classes $3,000 $3,600 Special Events (Family Night, Teen Night, etc.) Avg. No. of Events per Fall/Winter/Spring 3 3 Avg. No. of Participants per Event Avg. Fee per Participant $10 $10 Subtotal Special Events $1,800 $2,250 Total Potential Revenue $108,700 $151,800 Bethel School District Aquatic Center D.13

99 BETHEL SCHOOL DISTRICT AQUATIC CENTER 50 METER - OPTION 1 April 1, 2014 Recreation Pool - Summer Low High Water Fitness Class Avg. No. of Classes offered per Session No. of Sessions per Summer Avg. No. of Participants per Class Avg. Fee per Participant $7.50 $7.50 Subtotal Water Fitness Class $22,500 $29,250 Senior Water Exercise Class Avg. No. of Classes offered per Session 3 3 No. of Sessions per Summer Avg. No. of Participants per Class Avg. Fee per Participant $6 $6 Subtotal Senior Water Exercise Class $4,050 $5,400 Parent & Tot Class Avg. No. of Classes offered per Session 8 8 No. of Sessions per Summer 3 3 Avg. No. of Participants per Class Avg. Fee per Participant $30 $30 Subtotal Parent & Tot Class $9,360 $12,240 Preschool Beach Program No. of visits per week 5 5 No. of weeks Avg. No. of family participant Avg. fee per family $9.10 $9 Subtotal Preschool Beach $6,825 $9,100 Group Swim Lessons - Daily Morning Avg. No. of Classes offered per Session No. of Sessions per Summer 7 7 Avg. No. of Participants per Class 5 6 Avg. Fee per Participant $60 $60 Subtotal Group Swim Lessons $75,600 $90,720 Private Swimming Lessons (1/2 Hour) No. Lessons per Summer Avg. Fee per Lesson $30 $30 Subtotal Private Swimming Lessons (1/2 Hour) $720 $900 Group Swim Lesson - Monday & Wed Evening Avg. No. of Classes offered per Session No. of Sessions per Summer 3 3 Avg. No. of Participants per Class 5 6 Avg. Fee Per Participant $60 $60 Subtotal Group Swim Lesson - $43,200 $51,840 Bethel School District Aquatic Center D.14

100 50 METER - OPTION 1 April 1, 2014 Recreation Pool - Summer Low High Group Swim Lesson - Tues & Thursday Avg. No. of Classes offered per Session No. of Sessions per Summer 3 3 Avg. No. of Participants per Class 5 6 Avg. Fee per Participant $60 $60 Subtotal Group Swim Lesson - $28,800 $34,560 Group Swim Lesson - Saturday Avg. No. of Classes offered per Session No. of Sessions per Summer 3 3 Avg. No. of Participants per Class 5 6 Avg. Fee per Participant $30 $30 Subtotal Group Swim Lesson - $15,750 $18,900 Summer Field Trips Avg. No. of Field Trip visits per week 2 2 No. of Weeks per Summer Avg. No. of Participants Avg. Fee per participant $6 $6 Subtotal Summer Field Trips $3,900 $4,680 Special Event-Family Night Avg. No. of Events per summer 1 2 Avg. No. of Families per event Avg. fee per family $17 $17 Subtotal Family Event Revenue $1,020 $2,210 Pool Rentals Avg. No. of Rentals per Summer Hour Rental $520 $520 Subtotal Pool Rentals $520 $1,560 Party Room Rentals Avg. No. of Parties per Week Avg. No. of Weeks per Summer Avg. Cost per Party $225 $225 Subtotal Party Room Rentals $50,625 $60,750 Total Potential Revenue $262,870 $322,110 Bethel School District Aquatic Center D.15

101 BETHEL SCHOOL DISTRICT AQUATIC CENTER 50 METER - OPTION 1 April 1, 2014 Recreation Pool - Fall/Winter/Spring Low High Water Fitness Class Avg. No. of Classes offered per Week No. of Weeks Avg. No. of Participants per Class Avg. Fee per Participant $7.50 $7.50 Subtotal Water Fitness Class $52,500 $57,750 Senior Water Exercise Class Avg. No. of Classes offered per Session 3 3 No. of Weeks Avg. No. of Participants per Class Avg. Fee per Participant $6 $6 Subtotal Senior Water Exercise Class $9,450 $12,600 Parent & Tot Class Avg. No. of Classes offered per Session 8 8 No. of Sessions per Fall/Winter/Spring 7 7 Avg. No. of Participants per Class Avg. Fee per Participant $30 $30 Subtotal Parent & Tot Class $16,800 $20,160 Morning Pre-School Swim Lessons Avg. No. of Classes offered per Session No. of Sessions per Fall/Winter/Spring 7 7 Avg. No. of Participants per Class 3 4 Avg. Fee per Participant $30 $30 Subtotal Morning Pre-School $10,080 $15,120 Group Swim Lesson -Monday & Wed Avg. No. of Classes offered per Session No. of Sessions (5weeks) per Fall/Winter/Spring 7 7 Avg. No. of Participants per Class 4 5 Avg. Fee per Participant $60 $60 Subtotal Group Swim Lesson - $67,200 $88,200 Group Swim Lesson - Tues & Thursday Avg. No. of Classes offered per Session No. of Sessions (5 weeks) per Fall/Winter/Spring 7 7 Avg. No. of Participants per Class 4 5 Avg. Fee per Participant $60 $60 Subtotal Group Swim Lesson - $50,400 $67,200 Group Swim Lesson - Saturday Avg. No. of Classes offered per Session No. of Sessions (5 weeks) per Fall/Winter/Spring 7 7 Avg. No. of Participants per Class 4 5 Avg. Fee per Participant $30 $30 Subtotal Group Swim Lesson - $26,880 $35,700 Bethel School District Aquatic Center D.16

102 50 METER - OPTION 1 April 1, 2014 Recreation Pool - Fall/Winter/Spring Low High Private Swimming Lessons (1/2 Hour) No. of Lessons per Week No. of Weeks Avg. Fee per Lesson $30 $30 Subtotal Private Swimming Lessons (1/2 Hour) $10,500 $12,600 Preschool Beach Program No. of visits per week 5 5 No. of weeks Avg. No. of family participants 6 8 Avg. fee per family $7 $7 Subtotal Preschool Beach $6,825 $9,100 Field Trips No. of visits (school breaks) 4 6 Avg. No. of participants Avg. fee per participant $6 $6 Subtotal Field Trips $600 $1,080 Homeschool Program No. of visits per week 2 2 No. of 8 week sessions 4 4 Avg. fee per participant $80 $80 Avg. no. of participants 8 10 Subtotal Homeschool $5,120 $6,400 Pool Rentals Avg. No. of Rentals per Fall/Winter/Spring Hour Rental (Avg. 4 Group) $520 $520 Subtotal Pool Rentals $520 $1,560 Party Room Rentals Avg. No. of Parties per Week 6 7 Avg. No. of Weeks per Fall/Winter/Spring Avg. Cost per Party $225 $225 Subtotal Party Room Rentals $47,250 $55,125 Total Potential Revenue $304,125 $382,595 Bethel School District Aquatic Center D.17

103 BETHEL SCHOOL DISTRICT AQUATIC CENTER 50 METER - OPTION 1 April 1, 2014 F/W/S Wknd Annual F/W/S Revenue Low High Low High Low High Low High Child (2-6) $ $10,238 $12,285 Youth (7-18) $ $227,500 $310,625 Adult (18-64) $ $21,175 $29,838 Senior (65+) $ $7,560 $9,450 Family $ $32,725 $44,625 Totals $299,198 $406,823 Sales per Week Summer Wknd Annual F/W/S Revenue Low High Low High Low High Low High Child (2-6) $ $6,615 $8,100 Youth (7-18) $ $155,625 $204,375 Adult (18-64) $ $14,850 $18,150 Senior (65+) $ $3,240 $4,050 Family $ $28,050 $39, $208,380 $274,200 Sales per Week Gross Revenue $507,578 $681,023 Total Admissions 92, ,205 Sales Tax $44,667 $59,930 Net Revenue $462,900 $621,100 HYPOTHETICAL ANALYSIS There are 15 open rec swims per week with no less than 150 up to 300 bathers Low High Number of Open Rec No. of Sessions Number of Weeks Guest per Session Avg. of No. Rec Users Annual Participation 92, ,500 Avg. Fee $5 $5 $5 $5 Gross Revenue $562,500 $707,625 $750,000 $937,500 Participation 112, , , ,500 Adult Lap Swim No. per Day 2 3 Days per Year Avg. Fee $5.50 $5.50 Gross Revenue $3,575 $5,363 Sales Tax $475 $663 Net Revenue $3,100 $4,700 Participation Bethel School District Aquatic Center D.18

104 BETHEL SCHOOL DISTRICT AQUATIC CENTER 50 METER - OPTION 1 April 1, 2014 District Annual Billed Number Sold Subtotal Revenue Annual Passes Fee Monthly Low High Low High Child $288 $ $0 $0 Youth $360 $ $10,800 $14,400 Adult $432 $ $12,960 $15,120 Senior $288 $ $2,880 $4,320 Family $640 $ $19,200 $25,600 Subtotal $45,840 $59,440 $45,840 $59,440 Sales 8.8% $4,034 $5,231 Total Pass Revenue $41,806 $54,209 Bethel School District Aquatic Center D.19

105 BETHEL SCHOOL DISTRICT AQUATIC CENTER 25 METER - OPTION 2 April 1, 2014 OPERATING ASSUMPTIONS The assumptions listed below were used to project the annual operating costs and revenue potential for the Bethel School District Aquatic Center. The analysis is based on a 60,600sf building with an indoor 50 meter X 25 yard competition pool; a 5,500sf recreation pool with lap lanes, teaching areas, and a current channel, two water slide and play features; a soaking / hot tub, and outdoor sprayground. Projections of cost do not include start-up costs and other one-time costs associated with opening a new facility. A preopening budget is in addition to the costs presented in the analysis of operating costs and revenue potential. All costs and revenues are in 2014 dollars. Cost recovery, the percentage of revenue that is generated to offset operating cost, was calculated based on a series of assumption. Changes to any assumption, for example the hours of operation or fees, will change the cost recovery. "Low" cost recovery is the "downside" case, "High" is the best case. Achieving "Average" or the mid-range of programming and participation, is likely to require 2-3 years of operation. OPERATING ASSUMPTIONS Public Hours of Operation Year Round Monday - Friday 5:30 AM - 9:00 PM Saturday 8:00 AM - 6:00 PM Sunday 12:00 PM - 6:00 PM The facility may be scheduled for additional hours for special events, rentals, etc. School District Personnel Operating costs do not include wages or benefit costs for School District personnel teaching K-12 educational classes or coaching high school interscholastic activities. The District will employ all staff. HR, finance, risk managment, IT, and other administrative services will be paid be the District. The pool will employ a full-time operator and pay for custodial services. Maintenance will be provided by District maintenance staff and not charge to the Aquatic Center. School District Use The High School Swim Teams will train during the hours of 2:30pm - 4:30pm Monday - Friday throughout Fall/Winter/Spring. When the School District swim teams are training in the pool, the pool will be closed to the public. USA Swim Team Use During the hours when USA swim teams are practicing in the lap pool, two to three lap lanes will remain open to the public for lap swim. Bethel School District Aquatic Center E.1

106 BETHEL SCHOOL DISTRICT AQUATIC CENTER 25 METER - OPTION 2 April 1, 2014 COST RECOVERY Option 2: 25 Meter x 25 Yards Pool, 5,500sf Recreation Pool and Soaking Hot Tub Expense and Revenue Recap Low Average High Probable Operating Costs $1,666,000 $1,721,000 $1,776,000 Potential Revenue $1,225,000 $1,397,500 $1,570,000 Cost Recovery ($551,000) ($323,500) ($96,000) 69.0% 81.2% 94.2% Bethel School District Aquatic Center E.2

107 BETHEL SCHOOL DISTRICT AQUATIC CENTER 25 METER - OPTION 2 April 1, 2014 OPERATING EXPENSE SALARIES AND BENEFITS Full-Time Salaries Low High Aquatic Center Manager $75,000 $87,000 Aquatics Coordinator $46,000 $53,000 Guest Services Supervisor $32,000 $37,000 Business Services $46,000 $53,000 Building and Pool Maintenance Technician $48,000 $56,000 Subtotal Full-Time Salaries $247,000 $286,000 Full-Time Employee Benefits Full-Time Staff Benefits $79,000 $92,000 Subtotal Full-Time Employee Benefits $79,000 $92,000 Part-Time Pay Plus Employee Salaries Marketing and Social Media $16,000 $16,000 Cashiers $100,000 $100,000 Building and Pool Maintenance Worker $14,000 $14,000 Head Lifeguards $25,000 $25,000 Lifeguard $301,000 $304,000 Swim Instructors $78,000 $78,000 Fitness Instructors $17,000 $17,000 Party and Event Coordinator $12,000 $12,000 Birthday Party Staff $7,000 $8,000 Custodial Staff $46,000 $52,000 Subtotal Part-Time Pay Plus Employee Salaries $616,000 $626,000 Part-Time Employee Payroll Tax Part-Time Staff Benefits (17%) $105,000 $106,000 Subtotal Part-Time Employee Payroll Tax $105,000 $106,000 Subtotal Salaries and Benefits $1,047,000 $1,110,000 Bethel School District Aquatic Center E.3

108 BETHEL SCHOOL DISTRICT AQUATIC CENTER 25 METER - OPTION 2 April 1, 2014 OPERATING EXPENSE Travel and Training Low High Staff Travel and Conferences $3,000 $3,000 Training/Certification/Dues $1,000 $1,000 Subtotal Travel and Training $4,000 $4,000 Staff Uniforms All Staff $4,000 $4,000 Subtotal Staff Uniforms $4,000 $4,000 Communication Services Voice and Data $6,000 $6,000 Subtotal Communication Services $6,000 $6,000 Supplies and Materials Office Supplies / Printing / Postage $5,000 $5,000 General Building Supplies $5,000 $5,000 Program Supplies $6,000 $6,000 Program Supplies: Birthday Parties $25,000 $30,000 Merchandise for Resale $3,000 $4,000 Major Equipment / Rentals $8,000 $8,000 Pool Chemicals $43,000 $45,000 Subtotal Supplies and Materials $95,000 $103,000 Custodial Services and Supplies Custodial and Paper Supplies $12,000 $14,000 Subtotal Custodial Services and Supplies $12,000 $14,000 Repair and Maintenance Facility Repair and Maintenance $48,000 $54,000 Major Equipment Repair and Maintenance $10,000 $12,000 HVAC Filter Repacement $20,000 $20,000 Subtotal Repair and Maintenance $78,000 $86,000 Marketing and Promotions Printing, Graphic Support $20,000 $20,000 Subtotal Marketing and Promotions $20,000 $20,000 Service Agreements / Contract Services Safety Equipment $1,000 $1,000 Alarm / Security System $1,000 $1,000 Subtotal Service Agreements / Contract Services $2,000 $2,000 Computer Services Low High Software, Agreements, and Upgrades $2,000 $3,000 Subtotal Computer Services $2,000 $3,000 Bethel School District Aquatic Center E.4

109 BETHEL SCHOOL DISTRICT AQUATIC CENTER 25 METER - OPTION 2 April 1, 2014 OPERATING EXPENSE Utilities Building and Pool Utilities $222,000 $231,000 Water Service and Sewer $66,000 $76,000 Waste Disposal and Recycling Services $5,000 $5,000 Subtotal Utilities $293,000 $312,000 Bank Charges and Miscellaneous Bank Charges $33,000 $42,000 Capital Outlay $20,000 $20,000 Insurance $0 $0 Subtotal Bank Charges and Miscellaneous $53,000 $62,000 Capital Reserve Capital Reserve Fund $50,000 $50,000 $50,000 $50,000 Subtotal Operating Expenses (rounded) $619,000 $666,000 TOTAL OPERATING EXPENSE $1,666,000 $1,776,000 Bethel School District Aquatic Center E.5

110 BETHEL SCHOOL DISTRICT AQUATIC CENTER 25 METER - OPTION 2 PROBABLE OPERATING COST DETAIL April 1, 2014 EMPLOYEE BENEFITS Full-Time District Employee Benefits Hourly Employee Benefits Full-Time Benefits Monthly $247,000 $286,000 Part-Time Salaries $616,000 $626,000 Pecentage of Wages 32% 32% Pecentage of Wages 17% 17% Subtotal $79,040 $91,520 Subtotal $104,720 $106,420 Staff Travel and Conferences TRAVEL AND TRAINING Training/Certification/Dues Annual Allocation $3,000 $3,000 Annual Allocation $1,000 $1,000 Subtotal $3,000 $3,000 Subtotal $1,000 $1,000 Staff Uniforms Annual Allocation $4,000 $4,000 Subtotal $4,000 $4,000 STAFF UNIFORMS COMMUNICATION SERVICES Telecommunications Cell Phones Number of Voice / Data Lines 6 7 Number of PDA/Cell 2 2 Avg. Cost per Line per Month $60 $60 Annual Allocation per Phone $600 $600 Number of Months per Year Subtotal $1,200 $1,200 Subtotal $4,320 $5,040 SUPPLIES AND MATERIALS General Office Supplies Other: Postage and In-House Printing Number of Months per Year Avg. Cost per Year $2,000 $2,000 Avg. Cost per Month $250 $275 Subtotal $2,000 $2,000 Subtotal $3,000 $3,300 General Building Supplies Merchandise for Resale Annual Allocation $5,000 $5,000 Annual Allocation $3,000 $4,000 Subtotal $5,000 $5,000 Subtotal $3,000 $4,000 SUPPLIES: PROGRAM AND POOL CHEMICALS Program Supplies Major Equipment / Rentals Annual Allocation $6,000 $6,000 Annual Allocation $8,000 $8,000 Subtotal $6,000 $6,000 Subtotal $8,000 $8,000 Program Supplies: Birthday Parties Pool Chemicals: Spa No. of Parties per Year Water Surface Sq. Footage Cost per Party $35 $35 Average Cost per Square Foo $3.75 $3.90 Subtotal $25,200 $29,700 Subtotal $750 $780 Pool Chemicals: Recreation Pool Pool Chemicals: 25-Yard x 82' Lap Pool Water Surface Sq. Footage 5,500 5,500 Water Surface Sq. Footage 6,150 6,150 Average Cost per Sq Ft $3.75 $3.90 Average Cost per Sq. Ft. $3.55 $3.75 Subtotal $20,625 $21,450 Subtotal $21,833 $23,063 Bethel School District Aquatic Center E.6

111 25 METER - OPTION 2 PROBABLE OPERATING COST DETAIL April 1, 2014 Facility Repair and Maintenance Major Equipment Repair and Maintenance Avg. Cost per Month $4,000 $4,500 Annual Allocation $10,000 $12,000 Number of Months per Year Subtotal $10,000 $12,000 Subtotal $48,000 $54,000 HVAC Filter Replacement/Mainteance Agreement Annual Allocation $20,000 $20,000 Subtotal $20,000 $20,000 Printing, Graphic Support Annual Allocation $20,000 $20,000 Subtotal $20,000 $20,000 BUILDING REPAIR AND MAINTENANCE MARKETING AND PROMOTIONS SERVICE AGREEMENTS / CONTRACT SERVICES Alarm / Security System Landscape and Grounds - Performed by District Staff Number of Months per Year Contract Maintenance $0 $0 Avg. Cost per Month $60 $80 Subtotal $0 $0 Subtotal $720 $960 Parking Lot Maintenance - Paid by District Safety Equipment Clean-Up Inspections, Service $1,000 $1,000 Slurry Seal, Line Painting Subtotal $1,000 $1,000 Subtotal $0 $0 UTILITIES Building Utilities - Electricity and Gas Natatorium Utilities - 25 Meter Pool Building Net Sq. Ft. 15,000 15,000 Building Net Sq. Ft. 11,000 11,000 Cost per Sq. Ft Cost per Sq. Ft Subtotal $47,250 $48,750 Subtotal $39,600 $41,800 Pool Utilities - 25 Meter Pool Pool Utilities - Recreation Pool Pool Surface Area 6,150 6,150 Pool Surface Area 5,500 5,500 Cost per Sq. Ft Cost per Sq. Ft Subtotal $47,970 $49,200 Subtotal $42,900 $44,000 Natatorium Utilities Recreation Pool Pool Utilities - Hot Tub Building Net Sq. Ft. 12,000 12,000 Pool Surface Area Cost per Sq. Ft Cost per Sq. Ft. $7.80 $8.00 Subtotal $43,200 $45,600 Subtotal $1,560 $1,600 Water Service and Sewer Waste Disposal & Recycling Services Average Cost per Month $5,500 $6,350 No. of Months No. of Months Monthly Charge $400 $400 Subtotal $66,000 $76,200 Subtotal $4,800 $4,800 Bethel School District Aquatic Center E.7

112 25 METER - OPTION 2 April 1, 2014 PROBABLE OPERATING COST DETAIL Computer Service, Software, Upgrades No. of Computers 8 10 Cost per Computer $300 $300 Subtotal $2,400 $3,000 COMPUTER SERVICES Custodial and Paper Supplies Avg. Cost per Month $1,000 $1,200 Number of Months per Year Subtotal $12,000 $14,400 CUSTODIAL SERVICES MISCELLANEOUS Bank Charges Capital Outlay 90% of Revenue $1,103,000 $1,413,000 Annual Allocation $20,000 $20,000 Bank Fee Percentage 3.0% 3.0% Subtotal $20,000 $20,000 Subtotal $33,090 $42,390 Insurance District $0 $0 Subtotal $0 $0 RESERVES AND SET-ASIDES Capital Reserve Fund Annual Allocation $50,000 $50,000 Subtotal $50,000 $50,000 Bethel School District Aquatic Center E.8

113 BETHEL SCHOOL DISTRICT AQUATIC CENTER 25 METER - OPTION 2 April 1, 2014 REVENUE BUDGET 25-Yard x 82' Competition Pool Low High Daily Admissions $3,000 $5,000 Annual Passes $10,000 $14,000 Classes and Programs $51,000 $60,000 Summer Rec Swim Team $12,000 $16,000 Masters Swim Team $24,000 $29,000 Team Rentals $57,000 $71,000 Subtotal 25-Yard x 82' Competition Pool $157,000 $195,000 Recreation Pool Daily Admissions $463,000 $621,000 Annual Passes $31,000 $41,000 Classes and Programs $464,000 $579,000 Parties and Pool Rentals $103,000 $125,000 Subtotal Recreation Pool $1,061,000 $1,366,000 Miscellaneous Merchandise Sales $4,000 $5,000 Vending (Net) $3,000 $4,000 Subtotal Miscellaneous $7,000 $9,000 Total Revenue Potential $1,225,000 $1,570,000 Bethel School District Aquatic Center E.9

114 BETHEL SCHOOL DISTRICT AQUATIC CENTER 25 METER - OPTION 2 April 1, Meter x 25 Yard Lap Pool - Summer Low High Pre-Competitive Avg. No. of Classes offered per Session 1 1 No. of Sessions per Summer 3 3 Avg. No. of Participants per Class Avg. Fee per Participant $100 $100 Subtotal Pre-Competitive $4,800 $5,400 Deep Water Exercise Class Avg. No. of Classes offered per Weeks 2 2 No. of Sessions per Summer Avg. No. of Participants per Class Avg. Fee per Participant $7.50 $7.50 Subtotal Deep Water Exercise Class $6,750 $7,875 Lifeguard Classes Avg. No. of Classes offered per Session 1 1 No. of Sessions per Summer 2 2 Avg. No. of Participants per Class 8 10 Avg. Fee per Participant $165 $165 Subtotal Lifeguard Classes $2,640 $3,300 Masters Swim (program) No. of Months per Summer 3 3 Avg. No. of Participants per Month Avg. Fee per Participant per Month $75 $75 Subtotal Masters Swim (program) $6,750 $9,000 USA Swim Team Lane Rental Avg. No. of Lane rentals per hour 6 6 Avg. No. of Lane Rental Hours per Week Avg. Weeks per Summer 8 9 Cost per Lane per Hour $15 $15 Subtotal USA Swim Team Lane Rental $7,200 $8,100 Lane Rentals - Other Swim Teams Avg. No. of Lane Rentals per Hour 2 4 Avg. No of Hours per Day 2 2 Avg. No of Days per Week 4 4 Avg. Weeks per Summer Fee per Lane per Hour $15 $15 Subtotal Lane Rentals - Other Swim Teams $3,600 $7,200 Bethel School District Aquatic Center E.10

115 25 METER - OPTION 2 April 1, Meter x 25 Yard Lap Pool - Summer Low High Diving Program Avg. No of Classes per session 3 3 Avg. No. of sessions per summer 2 2 Avg. No. of participants per class 4 5 Fee per participant $75 $75 Subtotal Diving Program $1,800 $2,250 Summer Swim Club (2 months) Avg. No. of Participants per Summer Avg. Fee per Participant per Summer $200 $200 Subtotal Summer Swim Club (2 months) $12,000 $16,000 Competition Pool Meet Rental Avg. No. of Events per Summer 1 1 Avg. rental fee $2,000 $2,000 Subtotal Competition Pool Meet Rental $2,000 $2,000 Total Potential Revenue $47,540 $61,125 Bethel School District Aquatic Center E.11

116 BETHEL SCHOOL DISTRICT AQUATIC CENTER 25 METER - OPTION 2 April 1, Meter x 25 Yard Lap Pool - Fall/Winter/Spring Low High Pre-Competitive Avg. No. of Classes offered per Session 1 1 No. of Sessions per Fall/Winter/Spring 7 7 Avg. No. of Participants per Class Avg. Fee per Participant $100 $100 Subtotal Pre-Competitive $11,200 $14,000 Deep Water Exercise Class Avg. No. of Classes offered per Week 2 2 No. of Weeks Avg. No. of Participants per Class Avg. Fee per Participant $7.50 $7.50 Subtotal Deep Water Exercise Class $18,375 $21,000 Lifeguard Classes Avg. No. of Classes offered per Session 1 1 No. of Classes per Fall/Winter/Spring 2 2 Avg. No. of Participants per Class 8 10 Avg. Fee per Participant $165 $165 Subtotal Lifeguard Classes $2,640 $3,300 Masters Swim (program) No. of Months per Fall/Winter/Spring 9 9 Avg. No. of Participants per Month Avg. Fee per Participant per Month $75 $75 Subtotal Masters Swim (program) $16,875 $20,250 USA Swim Team Avg. No. of lane rentals 6 6 Avg. no. of days 5 5 Avg. Weeks per Fall/Winter/Spring Cost per Lane per Hour $15 $15 Subtotal USA Swim Team $14,850 $15,750 Lane Rentals - Other Swim Teams Avg. No. of Lane Rentals per Hour 2 2 Avg. No of Hours per Day 2 2 Avg. No of Days per Week 5 5 Avg. Weeks per Fall/Winter/Spring Fee per Lane per Hour $15 $15 Subtotal Lane Rentals - Other Swim Teams $10,500 $10,500 Other Club Rentals (Waterpolo, Synchro) Avg. No. of Hours per Day 2 2 Avg. No of Days per Week Avg. Weeks per Fall/Winter/Spring Fee per Hour $170 $170 Subtotal Water Polo/Synchro Rentals $10,200 $16,320 Bethel School District Aquatic Center E.12

117 25 METER - OPTION 2 April 1, Meter x 25 Yard Lap Pool - Fall/Winter/Spring Low High Short Course Meet Rentals Avg. No. of Meets per Fall/Winter/Spring 4 5 Avg. No. of Days per Meet 1 1 Avg. Fee per Day $1,100 $1,100 Subtotal Revenue $4,400 $5,500 Special Interest Avg. No. of Classes offered per Session 2 2 No. of Sessions per Fall/Winter/Spring 2 2 Avg. No. of Participants per Class 8 10 Avg. Fee $75 $75 Subtotal Special Interest Classes $2,400 $3,000 Competition Pool Meet Rental Avg. No. of Events per Fall/Winter/Spring 2 3 Avg. rental fee for all day $2,000 $2,000 Subtotal Comp Rental $4,000 $6,000 Total Potential Revenue $95,440 $115,620 Bethel School District Aquatic Center E.13

118 BETHEL SCHOOL DISTRICT AQUATIC CENTER 25 METER - OPTION 2 April 1, 2014 Recreation Pool - Summer Low High Water Fitness Class Avg. No. of Classes offered per Session No. of Sessions per Summer Avg. No. of Participants per Class Avg. Fee per Participant $7.50 $7.50 Subtotal Water Fitness Class $22,500 $29,250 Senior Water Exercise Class Avg. No. of Classes offered per Session 3 3 No. of Sessions per Summer Avg. No. of Participants per Class Avg. Fee per Participant $6 $6 Subtotal Senior Water Exercise Class $4,050 $5,400 Parent & Tot Class Avg. No. of Classes offered per Session 8 8 No. of Sessions per Summer 3 3 Avg. No. of Participants per Class Avg. Fee per Participant $30 $30 Subtotal Parent & Tot Class $9,360 $12,240 Preschool Beach Program No. of visits per week 5 5 No. of weeks Avg. No. of family participants Avg. fee per family $9.10 $9 Subtotal Preschool Beach $6,825 $9,100 Group Swim Lessons - Daily Morning Avg. No. of Classes offered per Session No. of Sessions per Summer 7 7 Avg. No. of Participants per Class 5 6 Avg. Fee per Participant $60 $60 Subtotal Group Swim Lessons $75,600 $90,720 Private Swimming Lessons (1/2 Hour) No. Lessons per Summer Avg. Fee per Lesson $30 $30 Subtotal Private Swimming Lessons (1/2 Hour) $720 $900 Group Swim Lesson - Monday & Wed Evening Avg. No. of Classes offered per Session No. of Sessions per Summer 3 3 Avg. No. of Participants per Class 5 6 Avg. Fee Per Participant $60 $60 Subtotal Group Swim Lesson - $43,200 $51,840 Group Swim Lesson - Tues & Thursday Avg. No. of Classes offered per Session No. of Sessions per Summer 3 3 Avg. No. of Participants per Class 5 6 Avg. Fee per Participant $60 $60 Subtotal Group Swim Lesson - $28,800 $34,560 Bethel School District Aquatic Center E.14

119 25 METER - OPTION 2 April 1, 2014 Recreation Pool - Summer Low High Group Swim Lesson - Saturday Avg. No. of Classes offered per Session No. of Sessions per Summer 3 3 Avg. No. of Participants per Class 5 6 Avg. Fee per Participant $30 $30 Subtotal Group Swim Lesson - $15,750 $18,900 Summer Field Trips Avg. No. of Field Trip visits per week 2 2 No. of Weeks per Summer Avg. No. of Participants Avg. Fee per participant $6 $6 Subtotal Summer Field Trips $3,900 $4,680 Special Event-Family Night Avg. No. of Events per summer 1 2 Avg. No. of Families per event Avg. fee per family $17 $17 Subtotal Family Event Revenue $1,020 $2,210 Pool Rentals Avg. No. of Rentals per Summer Hour Rental $520 $520 Subtotal Pool Rentals $520 $1,560 Party Room Rentals Avg. No. of Parties per Week Avg. No. of Weeks per Summer Avg. Cost per Party $225 $225 Subtotal Party Room Rentals $50,625 $60,750 Total Potential Revenue $262,870 $322,110 Bethel School District Aquatic Center E.15

120 BETHEL SCHOOL DISTRICT AQUATIC CENTER 25 METER - OPTION 2 April 1, 2014 Recreation Pool - Fall/Winter/Spring Low High Water Fitness Class Avg. No. of Classes offered per Week No. of Weeks Avg. No. of Participants per Class Avg. Fee per Participant $7.50 $7.50 Subtotal Water Fitness Class $52,500 $57,750 Senior Water Exercise Class Avg. No. of Classes offered per Session 3 3 No. of Weeks Avg. No. of Participants per Class Avg. Fee per Participant $6 $6 Subtotal Senior Water Exercise Class $9,450 $12,600 Parent & Tot Class Avg. No. of Classes offered per Session 8 8 No. of Sessions per Fall/Winter/Spring 7 7 Avg. No. of Participants per Class Avg. Fee per Participant $30 $30 Subtotal Parent & Tot Class $16,800 $20,160 Morning Pre-School Swim Lessons Avg. No. of Classes offered per Session No. of Sessions per Fall/Winter/Spring 7 7 Avg. No. of Participants per Class 3 4 Avg. Fee per Participant $30 $30 Subtotal Morning Pre-School $10,080 $15,120 Group Swim Lesson -Monday & Wed Avg. No. of Classes offered per Session No. of Sessions (5weeks) per Fall/Winter/Spring 7 7 Avg. No. of Participants per Class 4 5 Avg. Fee per Participant $60 $60 Subtotal Group Swim Lesson - $67,200 $88,200 Group Swim Lesson - Tues & Thursday Avg. No. of Classes offered per Session No. of Sessions (5 weeks) per Fall/Winter/Spring 7 7 Avg. No. of Participants per Class 4 5 Avg. Fee per Participant $60 $60 Subtotal Group Swim Lesson - $50,400 $67,200 Group Swim Lesson - Saturday Avg. No. of Classes offered per Session No. of Sessions (5 weeks) per Fall/Winter/Spring 7 7 Avg. No. of Participants per Class 4 5 Avg. Fee per Participant $30 $30 Subtotal Group Swim Lesson - $26,880 $35,700 Bethel School District Aquatic Center E.16

121 25 METER - OPTION 2 April 1, 2014 Recreation Pool - Fall/Winter/Spring Low High Private Swimming Lessons (1/2 Hour) No. of Lessons per Week No. of Weeks Avg. Fee per Lesson $30 $30 Subtotal Private Swimming Lessons (1/2 Hour) $10,500 $12,600 Preschool Beach Program No. of visits per week 5 5 No. of weeks Avg. No. of family participants 6 8 Avg. fee per family $7 $7 Subtotal Preschool Beach $6,825 $9,100 Field Trips No. of visits (school breaks) 4 6 Avg. No. of participants Avg. fee per participant $6 $6 Subtotal Field Trips $600 $1,080 Homeschool Program No. of visits per week 2 2 No. of 8 week sessions 4 4 Avg. fee per participant $80 $80 Avg. no. of participants 8 10 Subtotal Homeschool $5,120 $6,400 Pool Rentals Avg. No. of Rentals per Fall/Winter/Spring Hour Rental (Avg. 4 Group) $520 $520 Subtotal Pool Rentals $520 $1,560 Party Room Rentals Avg. No. of Parties per Week 6 7 Avg. No. of Weeks per Fall/Winter/Spring Avg. Cost per Party $225 $225 Subtotal Party Room Rentals $47,250 $55,125 Total Potential Revenue $304,125 $382,595 Bethel School District Aquatic Center E.17

122 BETHEL SCHOOL DISTRICT AQUATIC CENTER 25 METER - OPTION 2 April 1, 2014 F/W/S Wknd Annual F/W/S Revenue Low High Low High Low High Low High Child (2-6) $ $10,238 $12,285 Youth (7-18) $ $227,500 $310,625 Adult (18-64) $ $21,175 $29,838 Senior (65+) $ $7,560 $9,450 Family $ $32,725 $44,625 Totals $299,198 $406,823 Sales per Week Sum Wknd Annual F/W/S Revenue Low High Low High Low High Low High Child (2-6) $ $6,615 $8,100 Youth (7-18) $ $155,625 $204,375 Adult (18-64) $ $14,850 $18,150 Senior (65+) $ $3,240 $4,050 Family $ $28,050 $39, $208,380 $274,200 Sales per Week Gross Revenue $507,578 $681,023 Total Admissions 92, ,205 Sales Tax $44,667 $59,930 Net Revenue $462,900 $621,100 HYPOTHETICAL ANALYSIS There are 15 open rec swims per week with no less than 150 up to 300 bathers Low High Number of Open Rec No. of Rec Sessions Number of Weeks Guest per Session Avg. of No. Rec Users Annual Participation 92, ,500 Avg. Fee $5 $5 $5 $5 Gross Revenue $562,500 $707,625 $750,000 $937,500 Participation 112, , , ,500 Adult Lap Swim No. per Day 2 3 Days per Year Avg. Fee $5.50 $5.50 Gross Revenue $3,575 $5,363 Sales Tax $475 $663 Net Revenue $3,100 $4,700 Participation Bethel School District Aquatic Center E.18

123 BETHEL SCHOOL DISTRICT AQUATIC CENTER 25 METER - OPTION 2 April 1, 2014 PASS REVENUE District Number Sold Subtotal Revenue Annual Passes Fee Low High Low High Child $ $0 $0 Youth $ $10,800 $14,400 Adult $ $12,960 $15,120 Senior $ $2,880 $4,320 Family $ $19,200 $25,600 Subtotal $45,840 $59,440 Total Sales $45,840 $59,440 Sales 8.8% $4,034 $5,231 Total PASS REVENUE $41,806 $54,209 Bethel School District Aquatic Center E.19

124 BETHEL SCHOOL DISTRICT AQUATIC CENTER April 1, 2014 School District Use Summary Calculations assumes there are three girls and three boys high school swim and dive teams and that each team has a minimum of 25 swimmmers. Diving requires two lanes and the bulkhead to separate swimming from diving. Low High Girls Swimming and Diving Practice - Sept 1 to Nov 1 Avg. No. of Lane Rentals per Hour per Team 6 7 Avg. No of Hours per Day 2 2 Avg. No of Days per Week Avg. No. of Weeks Cost per Lane per Hour $12 $12 Number of Teams 3 3 $19,440 $22,680 Boys Swimming and Diving Practice - Nov 1 to Mar 1 Avg. No. of Lane Rentals per Hour per Team 6 7 Avg. No of Hours per Day 2 2 Avg. No of Days per Week Avg. No. of Weeks Cost per Lane per Hour $12 $12 Number of Teams 3 3 $33,048 $38,556 Lap Pool: High School Meets Avg. No. of Meets per Fall/Winter/Spring Avg. Fee per Meet $240 $240 Subtotal Lap Pool: High School Meets $5,760 $7,200 Instruction Avg. No. of Instruction Hours per Week Avg. No. of Weeks per School Year Avg. Fee per Hour $120 $120 Subtotal Instruction $68,400 $68,400 Physical Education Avg. No. of Instruction Hours per Week 5 5 Avg. No. of Weeks per School Year Avg. Fee per Hour $120 $120 Subtotal Physical Education $22,800 $22,800 Subtotal School District Use $149,448 $159,636 Bethel School District Aquatic Center F.1

125 BETHEL SCHOOL DISTRICT AQUATIC STUDY Fees & Charges Open Rec & Lap Swim Drop-In Rate Annual Pass Age Group Per Session Age Group Price Infants No Charge Infants No Charge Child (2-6) $4.50 Child (2-6) $288 Youth (7-18) $5.00 Youth (7-18) $360 Adult (19-64) $5.50 Adult (19-64) $432 Senior (65+) $4.50 Senior (65+) $288 Family $17.50 Family $640 Lap Lane Rental - Competition Pool Swim Lessons (1/2 Hour) Group Lane Per Hour Type Price Bethel SD No Charge 2 Week Group (8 Sessions) $48 Non BSD HS $15 Private (Per Session) $30 Public & Non-Profit $17 Private $19 Water Fitness Drop-In Rate Age Group Per Session Invitational - All Day Youth (7-18) $7 Group Lane Per Hour Adult (19-64) $7.50 Bethel SD Free Senior (65+) $6 All Other Groups $2,000 Meet - Competition Pool Invitational - Half Day (5 hrs) Group Lane Per Hour Group Lane Per Hour Bethel SD Free Bethel SD Free Non-BSD HS $175 All Other Groups $1,100 Non-Profit / USA $220 Master's Swim Home School Activity Classes Per Week 8-Week Session Monthly $75 Once a Week $80 Drop-In $7.50 Twice a Week $135 The Sports Management Group G1

126 Case Study: City of Lynnwood Recreation & Aquatics Center City of Lynnwood Population (2010 Census): 35,836 Facility Description The Lynnwood Center is a recreation center with a cardio and weight room, wood floor studio, racquetball courts, classrooms, and aquatics. The aquatics center includes a recreation pool with two water slides, lazy river, water playground, and family hot tub. It also includes a 6-lane lap pool, sauna, and warm-water therapy pool. Revenue The total 2013 revenue for the full center was $1,825,862. The portion of revenue attributable to aquatics is as follows:* Aquatics Revenue Daily Drop-In $429,856 Fitness Pass $24,993 Annual Pass $208,750 Swim Lessons, Classes $358,132 Party Room Rentals $54,951 Recreation Pool Rentals $139,428 3rd Grade Learn-To-Swim Contract $30,000 Total Aquatics Revenue 2013 $1,246,110 Total Participations for Open Recreation Total participations are reported as follows for aquatics: Aquatics Participations , ,481 Swim registrations ( ): 8,171 Chemicals (2013): $46,324 open Recreation periods: 802 utilities (2012): $284,487 *65% is the percentage the Recreation Superintendent cited as attributable to Aquatics. Source: Joel Faber, Recreation Superintendent City of Lynnwood Parks, Recreation & Cultural Arts Department jfaber@ci.lynnwood.wa.us Information received February 19, 2014 The Sports Management Group H1