2013 Report on Parks and Recreation Operations

Transcription

1 To: From: By: Subject: CITY OF WOODINVILLE, WA REPORT TO THE CITY COUNCIL rd Avenue NE, Woodinville, WA Honorable City Council Richard A. Leahy, City Manager V Alexandra Sheeks, Assistant to the City Manage~ 2013 Report on Parks and Recreation Operations Date: May 6, 2014 ISSUE: Shall the City Council receive the 2013 Report on Parks and Recreation Operations? RECOMMENDATION: To receive the report, discuss, and provide feedback as necessary. BACKGROUND/DISCUSSION: Annually, staff presents the results of operations for the Sports Fields and Community Center to the City Council and Parks and Recreation Commission. Below is a table summarizing the financial results of Parks and Recreation Operations for Attached is the 2013 Report on Parks and Recreation Operations that details Sports Field rental revenues and use, participation rates of the Northshore YMCA's operations at the Carol Edwards Center, costs to produce special events, and costs to maintain City parks. Staff will present details of the attached report at the Council meeting. The Parks and Recreation Commission received the report at its April 3rd meeting. City of Woodinville, Washington 2013 Parks and Recreation Financial Results of Operations Sports Special Passive 2013 Total 2012 Total Com. Ctr. Fields Events Parks Operations Operations REVENUE $201,300 $0 $0 $33,550 $234,900 $148,400 EXPENSES Direct O&M $216,100 $28,400 $59,900 $269,400 $573,800 $485,600 Indirect O&M $29,500 $0 $3,800 $114,400 $147,700 $251,700 Total Cost $245,600 $28,400 $63,700 $383,800 $721,500 $737,300 Program (Deficit)/Surplus ($44,300) ($28,400) ($63,700) ($350,250) ($486,600) ($588,900) Contribution from Other Funds $100,000 $0 $45,769 $92,500 $238,300 $227,500 NET/(DEFICIT)/SURPLUS $55,700 ($28,400) ($17,931) ($257,750) ($248,300) ($361,400) RECOMMENDED MOTION: I MOVE THAT CITY COUNCIL RECEIVE THE 2013 REPORT ON RECREATION OPERATIONS. PARKS AND Attachment 1: 2013 Report on Parks and Recreation Operations

2 ---- ~ "' ATTACHMENT1 ~ City of Woodinville, Washington 2013 Report on Parks and Recreation Operations March 2014

3 Introduction The City of Woodinville provides a focused scope of parks and recreational amenities to the community, including rental of the Woodinville Sports Fields, facilitation of recreation services provided by the Northshore YMCA, special events, and development and maintenance of passive, unprogrammed parks. The City produces its annual report for the benefit of the City Council, Parks and Recreation Commission, and the community as a whole to understand how the City operates and funds its parks services. Overview of 2013 Operations The City's operating deficit for Parks and Recreation decreased by 31%, from an operating deficit of $361,400 in 2012 to $248,300 in While the City receives some revenues for Parks and Recreation operations, primarily from sports field rentals, it is not assumed that these will be sufficient to cover the costs of operating the entire parks and recreation function for the City. An increase in revenues by about $53,000 (36%) is attributable to increased sports fields rental revenues. It should be noted that, because of the timing of rental revenue and the difference in pricing between youth and adult users, rental revenues attributed to 2013 are not necessarily reflective of increased activity in Direct operating costs increased by about $88,000 (18%) due to increased cost associated with the Celebrate Woodinville summer concerts and festival and a one-time repair of arson damage to the boardwalk at Rotary Park. These expenses were offset by lodging taxes and insurance reimbursement, rather than by the general fund. Indirect operating costs decreased significantly, by $104,000 (41%), due to decreased overhead charges. Table 1 on Page 3 shows the overall operating statement for the four business lines associated with parks and recreation for the City of Woodinville. Each of the separate services detailed in the table are described in below. Sports Fields Rentals The Woodinville Sports Fields are located immediately adjacent to the Carol Edwards Community Center and are part of the Civic Center Campus. The 7.5 acre facility includes a night-lighted, multi-use, allweather synthetic turf playing surface that includes two full-size soccer fields (or four 60-foot baseball/softball diamonds) and two parking lots with a total of 330 parking spaces. In 2013, field rental revenue increased by 22%, and the number of rental hours increased by 40%. Note that revenues collected during 2013 may include some revenues for 2014 rental hours and may omit some revenue collect in 2012 for 2013 rental hours. In addition, the difference in pricing between youth and adult rental rates mixed with changes in youth/adult use impacts revenue totals.. As a result, the correlation between revenue and rental hours is complex. Youth soccer, lacrosse, and baseball remain the top users of the fields. Adult soccer rental hours increased by 154%, which helped increase total rental revenue because of adult rental rates are than youth rates. The City began offering more flexible payment options, such as accepting credit cards and month-tomonth payments for block bookers, and the block booking periods were changed to January through June and July through December.. This affected the timing of when the City receives revenues for field use, which accounts for at least a portion of the large increase in rental revenues in 2013 from Renters are now making better use of the City's online field schedule, which staff observe has encouraged field rentals to book more hours. The operating deficit for sports field rentals decreased from $111,653 in 2012 to $44,261 in 2013, or 60%. If depreciation expenses are excluded, the Sports Fields had an operating surplus for the first time of $55,739. Other than an increase in field rental revenue, a large part of this surplus is due to decreased citywide overhead expenses reflects the first year that overhead expenses are charged based on the City's decreased staffing levels that began in 2011.

4 The City received nearly $660 in concessions fees from two vendors during the year. The City has renewed one vendor's concessions permit for Permitted concessionaires remit 10% of their gross receipts to the City on a monthly basis. Table 1: 2013 Annualized Parks & Recreation Revenues and Costs Fields Special Passive Total Parks & CEC/Rec. Rentals Events Parks Rec Dept Total Parks & Rep Dept 2012 Revenues Field Use Fees $173,500 $173,500 $119,500 Field Lights Fees $27,200 $27,200 $23,300 Program Fees ($600) Contributions/Miscellaneous $700 $33,600 $34,200 $6,200 Total Revenue $201,300 $33,600 $234,900 $148,400 Expenses Direct Labor/Benefits $22,800 $14,100 $91,200 $128,100 $136,300 In-Direct Depart. Labor/Benefits $41,700 $22,200 $63,900 $66,300 Contractor Services $7,100 $8,300 $45,800 $12,600 $73,800 $32,100 Other Direct Op. Supplies/Services $4,600 $700 $37,400 $42,700 $43,800 Utilities $29,400 $1,100 $37,200 $67,700 $52,200 Repairs $200 $9,300 $800 $10,300 $5,500 Equipment Acquisition/Replacement $3,100 $12,000 $15,100 $8,000 Facility Maintenance Supplies/Services $2,000 $8,200 $10,200 $7,400 Depreciation $100,000 $100,000 $100,000 Property Insurance $1,800 $5,700 $4,100 $11,500 $10,800 Liability Insurance $1,700 $8,500 $10,200 $8,900 Property Taxes (Fees i.e. SWM, ect.) $1,700 $3,300 $3,000 $7,900 $7,800 Major Capital Replacement $32,300 $32,300 $6,500 Subtotal Direct Program Costs $216,100 $28,400 $59,900 $269,400 $573,700 $485,600 t r: t General City Overhead $24,300 $97,000 $121,300 $227,000 Information Technology Services $3,000 $12,000 $15,000 $14,200 Legal Services Allocation $400 $1,600 $2,000 $3,300 Parks & Rec Commission $1,900 $3,800 $3,800 $9,400 $7,200 Subtotal Indirect Program Costs $29,500 $3,800 $114,400 $147,700 $251,700 Total Program Costs $245,600 $28,400 $63,600 $383,800 $721,400 $737,300 Program (Deficit)/Surplus ($44,300) ($28,400) ($63,600) ($350,200) ($486,500) ($588,900) Contributions from Other Funds Admission Tax $100,000 $92,500 $192,500 $192,500 Hotel/Motel Tax $45,800 $45,800 $20,000 General Fund $15,000 Total Contributions from Other Funds $100,000 $45,800 $92,500 $238,300 $227,500 NET (DEFICIT)/SURPLUS $55,700 ($28,400) ($17,900) ($257,700) ($248,300) ($361,400) NOTES: (1) Represents revenues received in the report period; does not account for fees or credits in 2012 for 2013 usage and includes revenues collected in 2013 for 2014 usage. (2) Amortized cost for turf replacement and assumes a useful life of 10 years. (3) $100,000 per year dedicated to turf replacement.

5 Table 2 and Chart 1 show a comparison of Sports Field rental usage from 2011 through TABLE 2: Rental Hours & Revenue Earned (accrual) by Fiscal Year fy2011 fy20l2 FV2013 2Dl Rental Type 2011Hot.rs Rate Revenue Hot.rs* Rate Revenue Hours Rate Rev!nJe Soccer- NYSA Disrount 1,210 $ 32 $ 38,720 1,154 $ 32 $ 36,928 1,177 $ 32 $ 37,664 Soccer- Youth Resident $ 40 $ 18, $ 40 $ 31, $ 40 $ 35,300 lacrosse- Youth Resident 246 $ 40 $ 9, $ 40 $ 14,cn:J $ 40 $ 17,900 Baseball- Youth Resident 605$ 40 $ 24, $ 40 $ 17,6Xl 358$ 40 $ 14,320 Soccer- Adult 189 $ 75 $ 14, $ 75 $ 8, $ 75 $ 22,650 Baseball- Youth NorrResident 0 $ 75 $ 48$ 75 $ 3,6Xl 161 $ 75 $ 12,075 Soccer- Youth NorrResident 0 $ 75 $ 64$ 75 $ 4, $ 75 $ 5,288 Other Event- Youth Resident 40$ 40 $ 1,6Xl 14 $ 40 $ $ 4b $ 1,520 Football- Youth Resident 0 $ 40 $ 38$ 40 $ 1,520 22$ 40 $ 800 lacrosse- Youth NorrResident 0 $ 75 $ 24 $ 75 $ 1,000 19$ 75 $ 1,425 Softball- Youth Resident 81.5 $ 40 $ 3,260 6 $ 40 $ $ 40 $ 420 Other- Adult 76 $ 75 $ 5,700 0 $ 75 $ 0.5 $ 75 $ 38 Football- Adult 0 $ 75 $ 2.5 $ 75 $ $ 75 $ Football- Youth NorrResident 0 $ 75 $ 12$ 75 $ $ 75 $ Softball -Adult 2 $ 75 $ $ 75 $ 0 $ 75 $ Other- Youth NorrResident 90.5 $ 75 $ 6,788 0 $ 75 $ 0 $ 75 $ Total Hot.rs $122, $121, $ 149,559 *The first quarter of 2012 data rray be based on originall:x:jokirgs and not actual usage. The uncertainty is due to the cha~i~ of scheduli~system;. Chart 1: Comparison of Sports Field Rental Hours, ,400 1,200 1,000 ~ ~ hi G =, - l c j _ll1 [[.. Ill_ -- fl G I 2011 Hours 2012 Hours * 2013 Hours

6 CEC/Recreation The "Y at the Carol Edwards Center" has been operating since April 2011, and averages around 1,000 visitors per week. The Y continues to expand its variety of different recreational and social outreach programs in the community, including group exercise classes, preschool, senior-focused classes, and outreach to needy families. Additionally, the YMCA participated in the inaugural Celebrate Woodinville festival by providing children and family activities. Table 3 below shows the Y's annualized program participation levels. Table 3: Comparison of Annualized City-Operated Carol Edwards Center and YMCA Operated Center Participation Levels City YMCA2011 YMCA 2012 YMCA 2013 Number of Participant Visits 23,221 34,076 58,685 41,645 Number of Participants Enrolled 3,500 5,428 7,576 7,729 Number of Programs Offered Community Room Rental Hours 1, Special Events The City partnered with the Woodinville Chamber of Commerce, Woodinville Wine Country, the Northshore YMCA, and several other community partners to host the second year of the reformatted evening summer concert series, which is branded as "Celebrate Woodinville." In 2013, four concerts were held, including a July 4 1 h afternoon concert and three weekday evening concerts, and culminated in a daylong community festival that included a pancake breakfast, parade, concerts, wine and beer garden, local food vendors, farmers market, arts and crafts fair, and children's activities. The Chamber provided the majority of the planning and administrative work for the event, hired bands and other contractors, and managed food vendors and exhibitors. The City's contribution to Celebrate Woodinville included $45,800 in lodging tax funds and $14,000 in City in-kind services, such as permitting, police, and administration. The Chamber received an additional $6,300 in sponsorships and exhibitor fees, which will be reinvested to support the 2014 Celebrate Woodinville event series. Table 4 shows a comparison of attendance at the 2012 and 2013 summer concerts and festival. Table 4: Comparison of City Summer Concert Attendance Evening Evening 2013 Concerts 2012 Concerts 2013 Festival No. of Concerts Estimated Total Attendance 3,100 2,300 5,000 Avg. Attendance per Event N/A

7 j Passive Parks Woodinville manages and maintains 13 parks and landscaped areas covering about 14 acres, as well as nearly 2 miles of unpaved trails. This excludes the Carol Edwards Community Center and the Woodinville Sports Fields, which are accounted for separately in this report and analysis. The costs included for Passive Parks includes all of the costs to maintain these parklands. There are no scheduling, rentals, programming or other activity revenues associated with Passive Parks. It is estimated that about $30,000 - $35,000 of the total costs of these parks is allocated to several small "pocket parks" located within Woodinville's residential neighborhoods. Direct labor and staffing costs for passive park maintenance decreased in 2013 due to hiring less temporary workers. In late 2013, the City's non-represented dedicated parks maintenance worker was reclassified into the Teamsters union; this change broadens the pool of available maintenance employees who can service City parks and recreation facilities. Out-of-the-ordinary expenses in Passive Parks included repair to a section of boardwalk at Rotary Park that was damaged by arson in fall The $32,000 repair was reimbursed by insurance, less a $5,000 deductible. Not including this one-time expense, total costs for passive park maintenance increased by 5% over Financial Outlook It is expected that costs associated with each of these business activities will increase with inflation over time. There are no anticipated additional staff or supply costs above inflation for Notable activities for 2014 include the second year of the Celebrate Woodinville event, which was awarded $42,300 in lodging tax funds for It is expected that hourly rental revenues from the sports field will continue at the same level in There is some opportunity for growth in revenue from additional rental hours at peak desirable rental times, which are 4:30PM-8:30PM on weekdays and 9:00AM-5:00PM on weekends. Chart 2 and Chart 3 below show the prime rental hours for the sports fields for weekdays and weekends, respectively. Percentages in each chart reflect the percentage of total prime time hours available that were rented in Chart 2: Percent of Weekday Prime Time Hours Reserved 100% 90% 80% 70% 60% 81% Week Day Prime Time 4:30pm to 8:30 pm 89% rb- {39% 00 0 ""' 0 80% t-- f-- r~ /4' f % ~~ t-- f-- f-- f-- I-- f f-- f-- f--- t-- f-- f-- f f f-- f SO% 40% 30% 20% 10% 0% t-- f-- f-- f-- f-- f f-- f--ll 1-- t-- f-- f-- f-- f-- f-- f-- f-- f--1: 1-- f.- t-- f-- f-- f-- f-- f-- f-- f-- f--1: 1--1, f-- t-- f f-- f-- f-- f--ii f f.- II t-- f f-- f-- f-- f-- f-- f--i; 1--ll f.- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec zol3

8 Chart 3: Percent of Weekend Prime Time Hours Reserved.100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 51% 77' Weekend Prime Time 9:00am to 5:00 pm r_ 85% "' li - 60% [I _ 1~% 50% I! 42% r-- - r-- -li ~ ;- hj - _ I' - r-1!- - r-- I r-- r--l; - r-1: - r-- L I - ~ : 90% li - ~ r- I. - r- - 1: I: r- 1: %- - - r- 33% 1: - - r-- - r- r I' - r- I-- c- ~ ~-- r-- I!,- - l r-- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec I Maintenance costs for the sports fields will likely continue to increase as more wear and tear affects the playing surface. Increased concessions sales may occur in the next year as more sports fields users see and take advantage of the vendor's products; however, the concessions operation is primarily seen as a benefit to sports fields users rather than a revenue-generating venture. The City will continue to explore other strategies for cost savings and operational efficiencies through maintenance, such as alternative service provision for landscaping and pocket park maintenance through agreements with existing homeowners associations, volunteers or with contract services. Doing so would allow current staff to dedicate more time to larger volume, high traffic parks to ensure that they are maintained at a high quality level. A budgeted improvement project in Wilmot Gateway Park will be completed during the first half of 2014 and will include restroom improvements and additional electrical capacity for sound equipment for events, lighting, and food vendors. This will result in lower operating costs for the Celebrate Woodinville summer concerts and festival. City staff, with guidance from the Parks and Recreation Commission, is reviewing policies that would allow private or non-profit organizations to hold special events in select City parks. There are a number of benefits and challenges associated with this policy change; careful planning and analysis will be applied throughout the year to determine whether or not allowing these extra events places undue burden upon both the City staff and citizens. Summary The information contained in this report is designed to help better understand the full and true costs of these services and to identify opportunities for revenue generation, cost reduction, or alternate service delivery for the City's Parks and Recreation function. Through prudent, proactive management and regular expense monitoring, the City aims to meet the primary PRO Plan goal of providing quality parks for Woodinville's citizens and visitors.

9 2013 REPORT ON PARKS & RECREATION OPERATIONS City Council May 6, 2014

10 BACKGROUND AND PURPOSE 2009: Began tracking costs to line departments, including Parks & Recreation 2010: Reviewed Parks & Recreation Revenue and Cost Allocation Study 2011: Reviewed Sports Field rates; YMCA began operations at CEC 2012: Reviewed first Annual Operations Report

11 2013 REPORT ON OPERATIONS Identifies four business activities within Parks & Recreation: Sports Field Rentals CEC/Recreation Special Events Passive Parks Allocates Direct and Indirect Costs to department programs and services

12 SUMMARY OF 2013 ANNUALIZED REVENUES AND COSTS Field Rentals CEC/Rec. Special Events Passive Parks Total Parks & Rec Dept 2012 Total Parks & Rec Dept Revenues Rental Fees $200,700 $200,700 $142,800 Contributions/Miscellaneous $700 $33,550 $34,250 $5,600 Subtotal Revenues $201,400 $0 $0 $33,550 $234,950 $148,400 Expenditures Direct Costs $216,100 $28,400 $59,900 $269,400 $573,800 $485,600 Indirect Costs $29,500 $0 $3,800 $114,400 $147,700 $251,700 Subtotal Expenditures $245,600 $28,400 $63,700 $383,800 $721,500 $737,300 Contributions from Other Funds $100,000 $45,800 $92,500 $238,300 $227,500 Net (Deficit)/Surplus $55,800 ($28,400) ($17,900) ($257,750) ($248,250) ($361,400)

13 SUMMARY OF 2013 ANNUALIZED REVENUES AND COSTS Field Rentals CEC/Rec. Special Events Passive Parks Total Parks & Rec Dept 2012 Total Parks & Rec Dept Revenues Rental Fees $200,700 $200,700 $142,800 Contributions/Miscellaneous $700 $33,550 $34,250 $5,600 Subtotal Revenues $201,400 $0 $0 $33,550 $234,950 $148,400 Expenditures Direct Costs $216,100 $28,400 $59,900 $269,400 $573,800 $485,600 Indirect Costs $29,500 $0 $3,800 $114,400 $147,700 $251,700 Subtotal Expenditures $245,600 $28,400 $63,700 $383,800 $721,500 $737,300 Contributions from Other Funds $100,000 $45,800 $92,500 $238,300 $227,500 Net (Deficit)/Surplus $55,800 ($28,400) ($17,900) ($257,750) ($248,250) ($361,400)

14 SUMMARY OF 2013 ANNUALIZED REVENUES AND COSTS Field Rentals CEC/Rec. Special Events Passive Parks Total Parks & Rec Dept 2012 Total Parks & Rec Dept Revenues Rental Fees $200,700 $200,700 $142,800 Contributions/Miscellaneous $700 $33,550 $34,250 $5,600 Subtotal Revenues $201,400 $0 $0 $33,550 $234,950 $148,400 Expenditures Direct Costs $216,100 $28,400 $59,900 $269,400 $573,800 $485,600 Indirect Costs $29,500 $0 $3,800 $114,400 $147,700 $251,700 Subtotal Expenditures $245,600 $28,400 $63,700 $383,800 $721,500 $737,300 Contributions from Other Funds $100,000 $45,800 $92,500 $238,300 $227,500 Net (Deficit)/Surplus $55,800 ($28,400) ($17,900) ($257,750) ($248,250) ($361,400)

15 SPORTS FIELDS RENTALS

16 SPORTS FIELDS RENTALS Total rental hours: 3,491 Revenues received: $200,700 (41% increase over 2012) Includes some revenues for 2014 rentals Growth areas: adult soccer (higher rates), lacrosse Activity Rental Hours Hours Youth Baseball Youth Soccer Youth Lacrosse Adult Soccer Year

17 SPORTS FIELDS RENTALS

18 SPORTS FIELDS RENTALS Week Day Prime Time 4:30 pm to 8:30 pm 100% 90% 80% 81% 89% 85% 85% 80% 74% 78% 81% 89% 89% 78% 70% 60% 50% 56% % 30% 20% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

19 SPORTS FIELDS RENTALS Weekend Prime Time 9:00 am to 5:00 pm 100% 90% 85% 95% 90% 80% 77% 70% 60% 50% 51% 60% 67% 49% 50% 42% 47% % 33% 30% 20% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

20 THE Y AT THE CAROL EDWARDS CENTER Started operations in April 2011 Average 1,000 visitors per week Group exercise, preschool, senior-focused classes, outreach to needy families Participation in Celebrate Woodinville Festival City YMCA 2011 YMCA 2012 YMCA 2013 Number of Participant Visits 23,221 34,076 58,685 41,465 Number of Participants Enrolled 3,500 5,428 7,576 7,729 Number of Programs Offered Community Room Rental Hours 1,

21 SPECIAL EVENTS

22 SPECIAL EVENTS Evening summer concerts + inaugural festival Total cost: $45,800; Lodging Tax revenues Attendance Evening Concerts 2012 Evening Concerts Festival No. of Concerts Est. Total Attendance 3,100 2,300 5,000 Average Attendance N/A

23 PASSIVE PARKS

24 PASSIVE PARKS 13 parks and landscaped areas = 14 acres No revenues Total costs = $383,775 Admission tax allocation $30,000 - $35,000 for pocket parks Trail maintenance = $2,000 per mile/year Wilmot Park maintenance = $85,750/year (or $23,180 per acre/year) Insurance reimbursement for Rotary Park Boardwalk arson damage

25 2014 OUTLOOK Opportunity for some growth in peak hour sports field rentals Improvements at Wilmot Park to reduce some maintenance Special events at City parks Purchase of Woodtrails property and Eastside Rail Corridor may bring additional maintenance costs Sports Field restroom damage Risk mitigation measures for other park restrooms

26 ANY QUESTIONS?