AGENDA MEMORANDUM. Item # 5. Meeting Date: September 4, Honorable Mayor and Members of Town Council. Rob Hanna, Director of Parks and Recreation

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1 AGENDA MEMORANDUM Item # 5 Meeting Date: September 4, 2012 To: From: Title: Honorable Mayor and Members of Town Council Rob Hanna, Director of Parks and Recreation Discussion / Direction: Potential Field House Executive Summary During the presentation of the Hunden Feasibility Study earlier last year, Town Council directed staff to prepare additional information on specific cost and prepare a business plan associated with a Fieldhouse facility. This memo is not intended to answer all issues and questions in detail but hopefully provide enough data and analysis to put Council in a position to make informed decisions on policy and priority issues regarding the expenditures required to construct and operate a Fieldhouse and further explain assumptions included in the 3-Year Financial Plan, which will be presented to Town Council in a few weeks. The concept being presented allows for the construction of a Fieldhouse and aquatic facility in 2014 funded by issuance of $8.8 million in Certificates of Participation repaid over a 20-year period from a portion ($650,000) of impact fee revenue received annually. Roughly half of the Parks and Recreation Impact fee revenue would be reserved for future park projects further discussed below. The program we developed tries to maximize the revenue and keep operational costs as low as possible while still providing new activities and programs which meet community needs. Bottom line, the facility as proposed requires $150,000 in annual revenue to cover all expenditures. The 3-Year Financial Plan provides an option for the additional revenue. Discussion Fieldhouse Below outlines a very conservative approach to anticipated revenue and expenditures for the operation of a proposed 50,000 square foot Fieldhouse. We anticipate that the revenue would increase from these numbers after the first year of operation and as the community grows. In determining the operational financials, extensive research was conducted by reviewing operational budgets of WECMRD Edwards Fieldhouse (57,851 square feet) in Eagle County and the Apex Fieldhouse (56,956 square feet) in Arvada, consultation 1

2 with Sink Combs Dethlefs Sports Architects as well as speaking with their Recreation Manager s on operational procedures in regards to successes and failures. In addition, information provided in the Community Recreational Facility Master Plan and Financial Feasibility Study, completed by Hunden Strategic Partners in 2011, was reviewed and analyzed. Further, current recreation trends and program numbers, waitlists, and participation variances were taken into consideration. Based on the findings of the research and analysis, the determinations of what should be included in the proposed Fieldhouse were made in order to determine the operational budget. The items included will allow for an expansion of certain existing programs, allow for an introduction of new activities and meet the community needs on both a recreational and competitive level. The proposed Fieldhouse would include: Amenity Approx. Square Feet One full size (100 x 180 ) synthetic turf field 18,000 One half size (100 x 90 ) synthetic turf field 9,000 Gymnastics & indoor playground 9,000 Locker rooms/restrooms 3,400 Lobby area/front desk 1,700 Multi-purpose rooms 2,000 Administrative offices 4,500 Storage 2,400 PROPOSED REVENUES AND EXPENDITURES Athletic Portion Revenues Programs $6,200 Daily use and passes $462,800 Total Revenues $469,000 Expenditures Wages $323,000 Utilities and Supplies $202,000 Total Expenditures $525,000 Net cost of operation $(56,000) Aquatic Portion Revenues Programs $80,000 Daily use and passes $165,000 Total Revenues $245,000 Expenditures Wages $286,300 Utilities and Supplies $54,200 Total Expenditures $340,500 Net cost of operation $(95,000) 2

3 Fieldhouse Revenue: Total projected revenue is $469,000. Projections of revenue were made based on 12 months of programming with the hours of the facility being open daily from 9 a.m. to 11 p.m. Opportunities for organizations/groups to rent and utilize the facility after the hours of operation were also taken into consideration. Estimated revenue includes: Daily Admission - Based on admission fees for participants to access all amenities within the Fieldhouse during unprogrammed time. Group Admissions - A discounted rate for groups of 25 or more individuals to utilize the facility on a drop-in basis. Gymnastics/Cheerleading - Revenue will be obtained mostly on a contract basis in which an organization would provide programs, such as, Little Tumblers, Little Waddlers, Gymsters, Mighty Mites, competitive classes, specialized training, cheer camps and cheer instruction. Birthday parties - Numerous birthday party packages would be available all year, such as, gymnastics, inflatables, turf/sport, climbing wall and a variety of combinations therein. Youth Programs - The revenue in this line item is from various youth programs other than athletics. Programs include Kids Nite Out, expanded dance, fitness activities (Zumba, Bootcamp), martial arts, poms instruction, etc. The majority of these programs would be run on a contract basis. Adult Programs - All adult programs outside the scope of athletics including Yoga, Pilates, Bootcamp, Zumba, expanded dance, martial arts etc. Similar to the youth programs, most of these will be contracted out. Youth Sports Programs - Athletic programs to include, lacrosse, soccer, t-ball, rugby, flag football, and strength conditioning camps. These programs will be instructed and supervised by Town staff. Youth Sport classes - Revenue obtained will be from sport specific instruction and mini sport classes, such as Sports Galore, Little Athletes, etc. All classes will be instructed by Town staff. Adult Sport Programs - Specific sports include soccer, kickball, flag football and softball. Supervision and coordination of adult sport programs will be conducted by Town staff. Facility Field Rentals - This line item revenue will come from various organizations/individuals using the turf field for camps, clinics and team rentals. 3

4 Facility room rental - Groups will pay to utilize the 2,000 square foot multi-purpose rooms that will be able to be divided into smaller sections depending on the need. Groups include churches, HOA s, birthday parties, etc. The use of this area would be an overflow of the demand of the Recreation Center and not in direct competition. Vending/Concessions - Similar to the Recreation Center this would be on a contract basis and a guaranteed yearly revenue amount would be established in the agreement. No revenue projections were made for sponsorship opportunities within the facility, such as on dasher boards. Fieldhouse Expenditures: Total projected expenditures: $525,000 Expenditures include 2 full-time positions for an Athletic Coordinator and Facility Coordinator and associated costs such as hourly rate, health benefits, retirement and taxes. Part-time wages encompass funds for Birthday party host, Front Desk positions and staff to run the Youth/Adult Programs. Utilities and supplies include port program supplies and equipment, Concession- Amount needed to provide various snacks, such as, Fruity Bars, chips, beverages, ice cream, etc. to the public, Preventative Maintenance, Cleaning Supplies, Maintenance Supplies, Office Supplies & Equipment, Telephone/Network Fee, Birthday Party Supplies, Staff Uniforms and Utilities. In estimating the expenditures for this facility, management fees and fund transfers were not taken into consideration. Overall, the numbers for this exercise are conservative. Apex Fieldhouse is projecting to be $60,000 in the black at the end of Edwards Fieldhouse is also projecting to bring in more revenue than expenditures, while operating within limited hours and only serving a population of 12,000. The Fieldhouse would not just be utilized for athletic programs, but the variety of amenities included could be used for anyone that wants to just play. There is a community value to this type of facility in that it would be open all day, which is important in the winter months. It would be family/kid friendly and provide an outlet for all ages. It would allow us to provide a facility and certain programs that are not currently being offered to the community. Aquatics Facility Below outlines the estimated financials for a 10,000 square foot aquatic facility similar in size and scope to Burges Pool but would be covered and utilized on a 12 month a year basis. The majority of the facility would be a leisure pool as well as a separate small dedicated lap lane/teaching area. 4

5 Aquatic Revenues: Total Revenue: $245,000 Revenues would be obtained through passes and daily admissions and swim lessons. The projected passes/daily admissions took into account the operation of Burgess Pool and the Recreation Center leisure pool. The total revenue would not decrease revenue from those facilities. The projected revenue for swim lessons is dependent on having a dedicated teaching pool area. This area would alleviate the overcrowding of the Recreation Center. It would also allow for the potential of opening up a few lap lanes for public swim during the day. Aquatic Expenditures: Total Expenditure: $340,500 Expenditures include part time wages for lifeguards, head lifeguards, manager and swim instructors. In addition, all chemical needs, operating supplies, utilities and repair and maintenance were considered. Flexible Design Options The design includes flexibility for future use and expansion of programs. The pool is designed to accommodate an air supported bubble to extend use to 12-months and the synthetic turf areas are designed to accommodate ice, if desired. The facility is also designed with expansion capabilities. Bubble There are many advantages to covering a swimming pool using an air supported pool dome. A dome is significantly less expensive than a permanent roof structure and allows for the option of taking it down during summer months so swimmers can still enjoy swimming outdoors. Without the need for any steel support beams, the air structure is an economical choice compared to other building options. Estimates provided by pool dome manufacturers to bubble an approximate 10,000 square foot aquatic facility vary greatly depending on the size and quality of the product. Bids we received were based on very conceptual designs and were around $550,000 and included an estimated $8.8 million capital construction cost. Ice Hockey With ice, an ever popular amenity that has been discussed many times over the past few years, we have incorporated options to change the synthetic turf to ice either on a temporary or permanent basis. We have also allowed for an expansion of the facility if in the future, we wanted to expand the facility for an ice hockey rink if and when funds or partnerships are available. 5

6 Administrative Offices Currently, Parks and Recreation Staff are divided into four separate office areas scattered around Town. A goal that would be accomplished with this plan is to consolidate those staff members. This concept provides 4,500 square feet of offices, which relocates all management and administrative staff in the Recreation Center, park planning trailer and management staff from the Service Center to one central location. Financial Impacts Estimated capital construction cost for the project is $8.8 million. This includes the Fieldhouse, Aquatic Facility and Administrative offices. We anticipate issuing Certificates of Participation bonds repaid over the next 20-years. Annual debt payments would be about $650,000. Debt payments would be through Parks and Recreation impact fees which are estimated at $1,158,150 per year using established building permit projections. Using established projections, we would acquire about $500,000 annually to spend on priority park projects. For example and in no particular priority order, we could build the park in The Meadows adjacent to Aspen View Academy Charter School in 2016, improve Festival Park in 2018 and construct phase one of the park in Cobblestone Ranch in Attachments Attachment A: Conceptual Floor Plan 6

7 INDOOR PLAYGROUND RETRACTABLE BATTING CAGES TURF FIELDHOUSE TURF SPORT AND FITNESS AREA GYMNASTICS