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1. 1Call to Order - Roll Call▶ 0:00
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   ↳You arrived here from a search for “SWOT analysis of facility” — transcript expanded below

   Presentation by the Sports Facilities Advisory, LLC

   discussed

   Sports Facilities Advisory, LLC representatives Evan Elop and Thomas Parker presented a mid-scope interim report on their study of the city's recreation facility, covering market analysis, user/non-user meetings, facility audit, and preliminary recommendations. They reported low turnout at public input sessions (zero non-users at the first meeting despite 6,500 email blasts; about a dozen users at a follow-up; 9-10 hand-selected non-users at a later meeting), identified strengths like quality front-line staff, and noted weaknesses including marketing reach. A full financial forecast is expected within about 4-6 weeks.

   • direction:Council received the mid-scope presentation and provided input to inform the consultant's final financial forecast. (none)

   🏢Applicant Insight🏢Board of Realtors🏢North Bay Hospital🏢Pasco County School Board🏢Sports Facilities Advisory, LLC🏢Tampa YMCA Association👤Bob Smallwood👤Elaine👤Evan Elop👤Justin👤Ms. Manns👤Ms. Smith👤Thomas Parker#Financial forecast#Mid-scope report#Quilt show / quilting group user representation#Recreation/Aquatic Center study#SWOT analysis of facility#Sims Park movie night (referenced as comparison)

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   [00:00:37] Group back in January of 2016. Their scope of services was to provide a [00:00:45] market study, a facility study, and a pro forma. They've been working since that [00:00:52] time. Some of the things that they've done is they've met with our staff. [00:00:56] They've also conducted a user study and a non-user study for the facility. They've [00:01:04] collected some market data and some facility data and the purpose of [00:01:08] tonight's work session is for them to bring you up to date on their efforts [00:01:12] and then additionally to provide you an opportunity for some input so that they [00:01:19] can take that into consideration before preparing a final report for your [00:01:22] consideration. We have two representatives with us this evening. [00:01:26] Evan Elop and Thomas Parker who will be heading up the presentation on behalf of [00:01:32] the Sports Advisory Group. We're ready Evan. Thank you. Perfect. So as we go [00:01:39] through first of all, first and foremost, thank you. I appreciate your time this [00:01:42] evening. I know it's been a couple of attempts at scheduling a time and we [00:01:46] couldn't do it during a normal Tuesday due to some travel schedule, but I'm [00:01:49] certainly appreciate the opportunity to talk to you today. As Ms. Manns pointed [00:01:53] out, we've gone through part of our process, not our full process, and we [00:01:57] wanted to make sure that we had this interim meeting. We call this quote sort [00:02:00] of a mid scope report and so as we go through this report, quick introductions [00:02:05] to Thomas and myself will quickly remind you of who our company is, what we are, [00:02:10] who we are, what we do. We want to bring you up to speed on what we've done so [00:02:15] far and what's still ahead of us based on the project overview, what we scope to [00:02:18] do, and what our progress is. And then break down sort of the three primary [00:02:23] things that we've done to date, which are we've held key meetings with, as Ms. [00:02:27] Manns mentioned, user groups, non-users, and facility staff. We have analyzed the [00:02:33] market data. We have gone through and done an audit of both the physical [00:02:39] facility and the membership data and the financial, well I should say all three, [00:02:44] and the financial data. And we're gonna wrap up with our current recommendations. [00:02:49] These should be considered preliminary. They are not proved out by the numbers [00:02:52] yet. We haven't done the financial forecast. That is our ultimate next step [00:02:55] following some conversation with you. So we'll open it up for discussion at the [00:02:59] end of this. Just quickly, I know you're all familiar with who our [00:03:05] company is, what we do, but as a reminder, we do this type of work regularly. We've [00:03:11] served over 750 communities across the world in the last 13 years since we [00:03:16] were founded, and everything that we do is based on real-world data, key [00:03:19] performance indicators, and national benchmarks for facilities like this in [00:03:23] terms of how they actually operate. So we not only are involved in the planning [00:03:26] and opening of facilities, but also the ongoing management. So we've got key [00:03:30] performance indicators from our own experience, not only with facilities we [00:03:34] currently have under management, which are 14 across the country, we're also [00:03:38] involved in dozens more of facilities from an operational standpoint across [00:03:41] the country, and from a background perspective on our team, we've got over [00:03:47] 200 people, over 30 in our corporate office, the rest across the country, [00:03:50] mostly at our facilities, and we've got a wide range of experience in facilities [00:03:55] very similar to these many publicly owned, privately managed, many publicly [00:03:59] owned, publicly managed facilities, and of course private as well. So just to get [00:04:06] you up to speed, as a reminder, what we really focused on for the scope of work [00:04:10] was producing a financial forecast. Steps that we were engaged to get to that [00:04:14] financial forecast were to review the existing data, review the market, review [00:04:19] the opportunities, have those key meetings as part of that opportunity [00:04:24] assessment, and also the audit portion, both from an operational standpoint and [00:04:28] a financial standpoint, and additionally, you know, use that information with the [00:04:35] key performance indicators, national benchmarks, and our experience, as I [00:04:38] talked about, to create a financial forecast. As we've gone through this [00:04:43] process, and I think rightfully so, we added a couple of things to this, this [00:04:46] interim report, update meeting, and report, which we envision being a lot of the [00:04:52] data that comes through this presentation. Now, I'm not going to go [00:04:55] through all of it. We've got about 40 slides, and I'm going to cover only at a [00:04:58] high level some of that information, but the objective is to get you this [00:05:01] information so you can review it in more depth with anything that you want to. So [00:05:05] if you look at the checkmarks, obviously those added items are the ones that [00:05:09] we're currently involved in, and coming up next, we'll be taking all the [00:05:13] information, including your input tonight, and going forward with the financial [00:05:16] forecast. Any questions about the scope of work? Excellent. So as we met initially [00:05:23] with Ms. Manns and Ms. Smith, we identified our goals for the study as [00:05:27] being really threefold. Number one, to analyze the opportunities, mostly to [00:05:31] expand service to the community. Ms. Manns was clear in that the direction is [00:05:35] first and foremost, how can we use this facility more? How can we get more people [00:05:40] in? How can we expand the ways that we serve? And financials typically follow, [00:05:46] you know, financial improvement typically follows, but certainly the goal was to [00:05:50] make better use, make more use of the facility. We need to do that by making [00:05:55] our strategic recommendations to the operations, to the physical facility, to [00:05:58] the programming, etc., and ultimately what we are tasked to do is provide you with [00:06:02] the most reliable and most credible financial forecast for any decisions [00:06:06] that need to be made to be made. So this sort of shows, it's a bit of a Gantt chart, [00:06:14] but it shows sort of where we are today and what we've done. The red line is this [00:06:19] week, so everything that is left of that line has been completed. We have the [00:06:24] kickoff call, the in-person meeting, site tour, market tour. We've assessed the [00:06:28] market and we've gone through the historic data analysis. We have also [00:06:32] completed the staff interviews, held the public sessions, completed a pricing [00:06:37] study, and we've had an additional data request for information that through our [00:06:41] analysis needed to be shored up. This week we've already met with finance, [00:06:49] really the administration portion, with getting back into some of the questions [00:06:55] that we had related to the data and figuring out where some of those holes [00:06:58] might have been, and ultimately tonight's council meeting. We will summarize any [00:07:03] that needs to come out of this in a report, which again will be primarily [00:07:08] driven by, we envision this report with all the data that's in it and a summary [00:07:13] letter, and then ultimately move forward with the full financial forecast. If we [00:07:17] were to start today, we could finish that full financial forecast in about four [00:07:20] weeks. We expect that there will be some changes, so we've added in a couple weeks [00:07:24] buffer here for anything that comes out of today from discussion of the findings [00:07:29] or recommendations and any assumptions or strategies that need to be addressed. [00:07:36] Dark blue is the overarching big bucket. Anything in light blue are the subtasks, [00:07:41] so if you look at detailed financial forecast starting the week of May 2nd [00:07:45] ending the week of May 30th, we won't take a full four weeks to complete all [00:07:50] of those pieces. We'll take a couple weeks on the earlier ones and then build [00:07:53] into the other ones. Any additional questions on what we've done so far? [00:08:08] We're gonna start you off with here is a summary of the key meetings, and so the [00:08:13] key meetings, as I mentioned, we met with staff, we met with management, we met with [00:08:18] users and non-users, general community members, with some insight. Users aren't [00:08:23] simply members. In some cases, they're non-members who are regular users of the [00:08:32] facility, so as you might expect, the quilting group was well represented at [00:08:36] one of our meetings. How many people were at the meeting, both users and non-users? [00:08:42] So the user group, there were about a dozen in each of them. So the the first [00:08:50] meeting, which was the afternoon of March 9th, there were about a dozen people and [00:08:55] then, oh sorry, the first meeting, the evening of March 9th, there were actually, [00:08:58] there was one person that came. That was supposed to be the non-user group [00:09:02] meeting, and so I don't know all the ways that the that the city reached out. There [00:09:07] were a number of ways, press releases, information on the Facebook page, etc. But [00:09:12] we didn't have any of the non-users show up to that. So we had one user. [00:09:15] That was actually the user group, wasn't it? [00:09:17] No, it was the non-user group. [00:09:19] That's where I was at. [00:09:21] Yeah, that was the community group. [00:09:23] It was either city or rec center associated, except for Bob Smallwood's wife. [00:09:29] So she's really not a non-user. I don't know, she's in, supposedly these people were [00:09:35] outside the city, and there wasn't anybody except her. [00:09:40] That was a very quick meeting, and it's the reason that we had the follow-up [00:09:44] meeting. So the general community efforts that were made through the city to get [00:09:50] people who are not currently users of the facility there didn't yield the [00:09:53] results. And so we did have obviously a better turnout the next morning, about a [00:09:57] dozen people from the user groups. We had representatives from swimming, from [00:10:01] special events like the quilt show and the quilt users. We had general members. We [00:10:07] had a couple of people who weren't members anymore, but still identified [00:10:11] themselves as users of the facility. And then because we didn't have very many [00:10:16] people come to that meeting, there was sort of a sniping, if you will, a hand [00:10:21] selection of people who are non-users but representative of different groups [00:10:26] in the community that came to the meeting on the... Excuse me? Those were [00:10:30] personal invitations through the city. So the non-users meeting, I think there [00:10:36] were actually ten non-users at that meeting, if I recall correctly. We've got [00:10:39] a sign-in sheet from it that lets you know who was there. [00:10:44] How did you decide who to invite? [00:10:46] We tried to find people that used to be members and were no longer members, and [00:10:53] other people that are active in the community, and also represent large [00:11:01] employee groups so that they might be interested in using the facility. [00:11:08] The first meeting on the March 9th was, I believe, six o'clock. It was in the evening. [00:11:15] The meeting on March 10th was in the morning. The user group meeting was [00:11:21] either nine o'clock or 10 a.m. And the meeting on the 31st, I believe, ended up [00:11:25] being 4 p.m. with those. [00:11:32] Yeah, the city also asked the elected officials if they'd like to invite anybody, and we didn't have anybody advanced. [00:11:44] So the next five slides, what we're going to go through... [00:11:49] Before you go to there, you've done this in a lot of different places. Give me a gate. [00:12:02] In total, having had the opportunity to talk with, we'll call it, a dozen people [00:12:08] through the two meetings that were attended, so 12 non-users and 12 users, is a little bit on the light side. [00:12:15] It depends community to community and general understanding. Some really informative information came out of that. [00:12:21] We'll talk about some of it, but one of the pieces of feedback that we got from the non-user groups and the user groups [00:12:27] were in discussing with their peers, people that they thought might have found out and been interested in coming. [00:12:34] They said, in some cases, that they simply didn't know about the information that was passed along. [00:12:40] In other cases, and I think this is more telling, they didn't know very much about the facility. [00:12:45] So even if they saw the information, they didn't necessarily have much information to go on in terms of [00:12:51] why this would be an important piece of information for them or meeting for them to take part in. [00:12:57] So it leads to one of our big pieces or a couple of our big pieces in terms of recommendations, [00:13:03] which is a real focus on updating what the facility offers, how you communicate the value propositions, [00:13:08] and ultimately how you spread information to the community about the opportunities at the facility. [00:13:15] Absolutely. Marketing, we've got some recommendations related to website, just general own website, [00:13:23] and a bit more descriptive in terms of what's currently available if you go to the city rec page and the information that you click through. [00:13:30] We think there are a number of ways, not part of the scope to create the full optimization plan [00:13:38] that would have a full marketing piece, but happy to show you some examples of things that we do, [00:13:42] strategic marketing initiatives for strategic plan, a monthly plan, a weekly and daily check-in [00:13:49] in terms of how many people you are letting know that didn't know about the facility. [00:13:53] From a management perspective, it's all about numbers. [00:13:57] And we're going to get into a lot of the numbers, but we would assume that you simply don't have the number of impressions [00:14:03] and number of views through the marketing channels that currently exist to make a large impact on current operations. [00:14:10] It has to be one of the pieces of the city. [00:14:26] For the non-user group, the second meeting, assuming that's what you're referring to, there were a dozen invitations sent out. [00:14:35] I think in the end there were nine or ten attendees. [00:14:47] The meeting for the ninth, as I recall, and Elaine, you may have better information on this, [00:14:52] when we talked about the methodology for delivering that information. [00:14:55] One of the areas I believe was an email blast. Is that correct? [00:15:00] There's a few thousand people on your email blast list. [00:15:07] No, 6,500 on our email. [00:15:11] And then on our Facebook, it went out. [00:15:14] And then we also notified North Bay Hospital, the school board. [00:15:19] We put it out through that information. [00:15:23] Applicant Insight, Ralph with them, and then Board of Realtors, too. [00:15:29] So we tried to spread the word out to some of the big user groups. [00:15:33] Or not businesses, some of the larger employers. [00:15:38] And so, you know, I'll be candid. [00:15:42] You can always rely on us to be candid. [00:15:45] You know, having zero people show up with 6,500 emails sent, a Facebook announcement, [00:15:51] and companies specifically contacted, I think everyone in here would agree that's a disappointment. [00:15:58] Everyone in here would agree that's a disappointing result. [00:16:00] It certainly should be a disappointing result. [00:16:03] I think that they're, you know, inherent in that, or if we were to break that down, [00:16:06] I think there are some areas that we could ask the question of, you know, did we give enough lead time? [00:16:11] Should that have been a different methodology? [00:16:14] That's a standard methodology. [00:16:16] And typically in communities when we do have that type of full press on getting information out, [00:16:23] and of course this scales to community size and how much publicity there has been around what's going on with this type of initiative, [00:16:29] it's not uncommon for us to have 40 to 80 people or more at a meeting like that. [00:16:52] Yeah, absolutely. [00:16:53] So I don't know what the verbiage used was as we talked about what the meeting would be for, [00:16:58] and our portion of how we approached that meeting, very standard from us. [00:17:03] We weren't part of the invitation process, [00:17:05] so I assume that the information that went out through the email is a similar way that you'd normally do it here. [00:17:12] And I assume there wouldn't be anything particularly different from how you would normally communicate with your citizens. [00:17:20] But, you know, in general that's meant to be an open session. [00:17:25] We discussed it as just an information session and a public input session as the key points of that. [00:17:31] And typically that's what draws a number of people. [00:17:36] Now, you know, you don't have a very big membership base, [00:17:39] and people who aren't connected to the facility or don't feel like that's their home facility, [00:17:44] there may be a reason that they didn't show up, you know, because they are non-users, [00:17:50] and why would a non-user of a facility go to a facility meeting? [00:17:53] So there could be any number of reasons for it, but, you know, certainly all of them were non-members. [00:18:03] Some were previous members, a few people who had kids who they used to be family members, [00:18:08] and then their kids grew up and moved away, and they don't have a use for the facility anymore. [00:18:12] But none of the 31st were current users. [00:18:24] There were either 9 or 10, and selected a dozen people, 9 or 10 of those people came. [00:18:48] Obviously, you know, 9, 10 o'clock in the morning, kind of a rougher time to get some people out. [00:18:58] And we did have a dozen people on the 10th that came to that 9 or 10 meeting. [00:19:05] You know, I will say this, and those meetings are important at the same time, [00:19:11] because we're very numbers based, what we use those meetings for is to understand sort of a 360 degree perspective. [00:19:17] So things that people think or feel or have experienced themselves, none of that drives the data. [00:19:23] What it drives is the areas that we look into. [00:19:26] And so from that perspective, having no one show up for a non-user group meeting [00:19:30] with a full press of a blast of information is telling to us as well. [00:19:36] It lets us look at some of the other areas in terms of, well, where is the city being successful? [00:19:40] How many people do show up to a movie night at Sims Park, [00:19:43] and what's the methodology for getting people out to that? [00:19:46] It's a lot of social media on the city Facebook page. [00:19:49] And so, you know, from that perspective and talking with the marketing person who's in charge of parks and rec marketing, [00:19:55] not just the facility marketing, you know, very standard ways and methodology. [00:19:59] So, you know, it's telling to us even not having talked to people in that meeting. [00:20:04] And we don't use that, again, as a primary driver for collecting data. [00:20:09] We use it as a primary driver for testing the waters, if you will. [00:20:14] Yes, but is it ever attempted that, I mean, I can tell you, just you mentioned the movie night. [00:20:29] We're slammed. [00:20:31] Yeah. [00:20:32] But, you know, we're inviting them to come and enjoy themselves in their pretty, you know, pretty someplace. [00:20:38] We've invited them to a rather dry, you know, dinner time. [00:20:42] I don't know that we have refreshments or whatever. [00:20:45] I'm not making excuses. [00:20:46] I'm just thinking in terms of, you know, posting these kinds of things, [00:20:50] what are the reasons that why people felt that they had a vested interest in it, [00:20:55] they had something that they wanted to share, or they were interested in learning about something. [00:20:59] So I don't know that what we were asking them, any of that criteria was met. [00:21:05] But with that said, when you're looking for input from these folks, [00:21:13] is it ever anticipated that you host something fun, and then when they're there, [00:21:18] not as an alternative, but let them understand that in this evening when this happens, [00:21:24] you know, we're going to invite, you know, share this information or whatever. [00:21:30] Is that ever managed? [00:21:34] No. [00:21:35] Well, but actually, so I'll give you the two ends of the spectrum. [00:21:40] From the advisory side, when we are engaged to do a scope of work like this, [00:21:44] it's almost never tied to an event. [00:21:46] But from the management side, and I'll tell you from my direct management experience, [00:21:50] and I was the director of the largest Y in the Tampa Association for four years before coming over to SFA, [00:21:57] we oftentimes paired up family fun nights or other events with times that we were trying to solicit input from people. [00:22:04] Because, and those are primarily, you know, users, [00:22:07] or you do it out for a community event where you don't have to be a member to enjoy that. [00:22:11] So on a facility side, that's common. [00:22:13] That's a very common strategy. [00:22:15] On a study side, that's not typically the way that we do it, [00:22:18] and we still get, you know, 60 to 80 people in a lot of those sessions. [00:22:27] We can keep. [00:22:29] Sure. [00:22:30] We can keep. [00:22:38] Sure. [00:22:39] Yeah. [00:22:40] We have used the facility, so your follow-up to that will be good. [00:22:49] Sure. [00:22:50] Sure. [00:22:51] Well, the way that we did break that down is we lumped both the users and the non-users, [00:22:56] as well as the staff, into sort of this SWOT overview, right? [00:23:00] Not a full chart, but strengths, weaknesses, opportunities, and threats. [00:23:03] And so I'm not going to, you can read these. [00:23:06] This is, again, this is meant to inform where we look for more data, not directly influence what we recommend. [00:23:13] And so I'm going to focus on just one or two of these per page. [00:23:17] You can read through them. [00:23:19] But, for example, one of the strengths that we heard resoundingly was the quality of the front-line staff. [00:23:26] Friendliness, attentiveness, the people who are there seem to care. [00:23:29] And you've got, in many cases, a lot of time, right, a tenure of those employees. [00:23:35] If you look at Justin, who's been there, I think, for eight years, and he is a regular person, [00:23:39] not only at the front desk but also in the fitness center. [00:23:41] People know him. [00:23:42] He's got a personal relationship. [00:23:44] We heard a lot of these things, and we think that that is obviously a major strength. [00:23:49] The other one that I'll touch base on here is perceived value from the annual membership [00:23:53] and the three-month option as well as the group package. [00:23:57] I'll put the caveat on that. [00:23:58] That is relative to the single-month fee, and you're going to see why here in a moment from the data. [00:24:03] So it's a good example of how we look at that and then start to break down the numbers. [00:24:07] From a weaknesses perspective, and I'll say there are more weaknesses than there are strengths, [00:24:11] that's what we're engaged to do, figure out where the challenges are that need to be overcome [00:24:16] in order to serve the community in more ways. [00:24:19] So I'll jump right to it, fees and services. [00:24:22] A high fee, people feel like it is a high fee relative to other competing facilities [00:24:28] and to what's offered at that facility. [00:24:31] In some cases, people wish that this was more of a 24-hour type of an establishment from a fitness perspective. [00:24:37] We don't think that that is the right direction to go, but we heard it. [00:24:40] Operating hours for both the pool and the fitness center, not ideal for everyone who's not a user. [00:24:50] Lane rentals for the pool. [00:24:51] Price of lane rentals, for example, it's more expensive to rent a lane at this facility than it is at the long center. [00:25:01] So, you know... [00:25:07] And so that's... [00:25:08] Drop-in. [00:25:09] Drop-in is primarily for basketball but other sports activities. [00:25:13] Paying a user rate to just come for their two-hour basketball session. [00:25:18] They're paying the full fee. [00:25:21] Yeah, we had some pickleball users. [00:25:24] Those aren't the people who mentioned it. [00:25:25] It was the basketball group that mentioned the high fee. [00:25:28] $7 for non-residents to come in, I believe, and play basketball relative to other prices. [00:25:37] Additional weaknesses, operations and facility. [00:25:41] As you can imagine, this was primarily driven by the staff. [00:25:44] The operating system, we looked further into it. [00:25:47] There are clear deficiencies in the operating system for a number of reasons that we'll talk about. [00:25:51] Operating system being the operating software. [00:25:55] Limitations on billing, tracking, reporting, et cetera. [00:25:58] An antiquated payroll system. [00:26:00] The administrator over payroll said that during the non-summer months it takes her a full day, eight hours, to process payroll. [00:26:09] And during the summertime when you've got 25-plus more lifeguards, it takes her two full days. [00:26:15] She has to do that twice a month. [00:26:17] So that's four days. [00:26:18] That's almost a week out of her time just checking timecards and processing payroll. [00:26:22] That's not a great use of time relative to the technology that you could be using to save money. [00:26:32] So you'll see some others. [00:26:33] The other one that I want to touch base on there is the skate park in particular. [00:26:39] Justin let us know that his estimate is on an annual basis anywhere between $2,000 and $2,500 in supplies to service damage [00:26:48] to the skate park with fences being cut, water fountains, restrooms being damaged, et cetera. [00:26:54] So we looked into that from our operational and management standpoint. [00:26:58] We've got a recommendation related to that as well. [00:27:01] Opportunities. [00:27:02] So looking outside of what currently... [00:27:05] Yeah. [00:27:10] On the other page, but inadequate drop-off areas because the front of the building is set so far back. [00:27:19] And coverage and drive up with access. [00:27:22] So we heard that from a couple of the senior members who either they or their spouses have been injured at a time. [00:27:30] Use that for a rehab facility, particularly water-based group classes, [00:27:33] and it's difficult for them to drop someone off at the front of that building. [00:27:38] Sorry, I should pause there. [00:27:40] On this list or any of the strengths or the other weakness lists, [00:27:45] any other areas that you want me to talk about in any specificity? [00:27:50] Okay. [00:27:51] So yes. [00:27:55] Yep. [00:27:56] So on users and users as well. [00:28:04] Yep. [00:28:05] Absolutely. [00:28:06] It is very common, particularly in this market, not for a 24-hour fitness, [00:28:09] but if you look at comparable facility rates for there being a child watch option. [00:28:19] When we talk about child watch, we don't mean that as an after-school program. [00:28:23] We mean that as a drop your kid off while you're working up to two hours typically, [00:28:27] either included or out of charge. [00:28:29] Absolutely. [00:28:30] Yep. [00:28:31] So getting outside of what currently happens, those are the strengths and the weaknesses, [00:28:36] not currently happening opportunities and threats. [00:28:39] You know, there are some programs. [00:28:41] In fact, silver sneakers aquatics classes are now being added. [00:28:44] They're currently being added by the aquatics program. [00:28:46] We think that's going to be a great benefit. [00:28:48] We agree. [00:28:49] Expansion of silver sneakers, especially given the number of members that you have [00:28:54] that are silver sneakers relative to non-silver sneakers members. [00:28:59] So opportunity to add child watch and increase the fitness center size. [00:29:05] Those were weaknesses. [00:29:06] They are also opportunities. [00:29:08] And then we also, from some of the staff, heard that when they get a call, [00:29:13] it's very difficult to get people to the facility. [00:29:16] How do I get there? [00:29:18] You have to tell them, and there are only a couple of signs. [00:29:21] So understanding that there's a master plan that is, I don't know. [00:29:33] In some cases it might be. [00:29:34] I mean, you know, just stay in time. [00:29:36] And that's an incessant comment that we hear every time, I can't find you. [00:29:45] And I just, I understand that's a comment, but to me it's a crutch. [00:29:53] And, you know, this facility's been around a long time. [00:29:56] I just can't imagine we've got that many new people. [00:30:00] in the area that can't find the wrecks. [00:30:02] Now, they may not know where Van Buren Street is, [00:30:06] because we all have declining memory cells. [00:30:10] But on the flip side, it just amazes me [00:30:15] that you have to put a spotlight in the sky. [00:30:17] You have to put a Batman beacon in the sky [00:30:20] just to tell them where the daggum place is. [00:30:22] But I recognize this is stuff we've heard over and over [00:30:28] and over again. [00:30:29] So we have to find some solutions there. [00:30:33] A wayfinding solution, not just for the wrecks [00:30:35] on a list of numerous aspects. [00:30:36] So, and I think. [00:30:50] Downtown, and find the recreation center. [00:30:55] I mean, I live here, and it's hard for me to explain. [00:30:58] It's not that hard, but where are the facilities? [00:31:05] That's true, but in explaining to people where it is. [00:31:09] It's right on the road. [00:31:12] Right, or it's by this place or that place. [00:31:16] I think it's also valuable enough [00:31:18] to say that you have a great set of pool amenities. [00:31:22] And in the summertime, that's a big draw [00:31:24] for non-residents, people coming from further than 15 minutes [00:31:27] away who aren't here regularly. [00:31:30] And geographically, it is not located [00:31:33] in a very highly visible or accessible area. [00:31:36] So I think, you know, I don't mean [00:31:38] to add validity to that comment. [00:31:42] We heard it multiple times, so it deserves to be here. [00:31:46] In terms of threats, these are, you know, [00:31:49] this is a combination of things that we heard [00:31:52] and things that we know. [00:31:53] But it shouldn't be any surprise that the population [00:31:56] that you're serving is a challenge in terms [00:31:59] of the age and the income level. [00:32:02] And additionally, when you think about competition [00:32:04] and the structure of this fee structure in particular [00:32:07] relative to any number of $10 and $15 per month options, [00:32:13] you know, that's a pricing challenge as well. [00:32:17] Location access and visibility, I just [00:32:19] mentioned it, services that are offered, [00:32:21] not having ChildWatch, having a smaller [00:32:23] than standard fitness center. [00:32:26] And the convenience from a location standpoint [00:32:32] and also a sort of a user friendliness. [00:32:34] You don't have staff that are at the fitness center, [00:32:37] for example. [00:32:38] So this is something that we heard it's not on there. [00:32:40] It's under convenience. [00:32:41] But you don't have regularly staffed floor attendance [00:32:44] at the fitness center. [00:32:45] One of the things that we heard from people [00:32:47] who aren't regular users of the fitness center [00:32:49] is that, hey, if I want to go work out [00:32:53] and I'm not totally comfortable working out, [00:32:55] I need someone there to guide me, [00:32:56] to tell me how to use the machine correctly. [00:32:58] And it's embarrassing for me a little bit, [00:33:00] but I don't even have the option at this facility. [00:33:02] So I will always choose a place to go work out [00:33:05] that someone can lead me a little bit more effectively. [00:33:16] So that last slide in particular, [00:33:18] when we start talking about some of the market data, pricing, [00:33:21] age, population, et cetera, really quick overview [00:33:25] of the summary market data, or really quick summary [00:33:28] of the market data, I should say. [00:33:30] None of this, I'm sure, will be surprising to anyone [00:33:32] in this room. [00:33:33] You've got a good population base. [00:33:35] This is within 15 minutes of this facility, [00:33:37] there are a lot of people, over 180,000 people, [00:33:39] within a 15-minute drive time. [00:33:42] And between 15 and 20 minutes really [00:33:44] is where we would draw the line of those [00:33:46] are where you have the opportunity [00:33:47] to draw your regular users as members. [00:33:49] Outside of that, there are certainly [00:33:52] opportunities to draw people on a daily visit. [00:33:55] We don't expect that this is the type of facility [00:33:57] that would draw from 45 or 60 minutes away [00:33:59] because of what's there, except on some weekends [00:34:02] or special events. [00:34:02] Phenomenal point, because even when [00:34:04] we're talking about 40 people coming to town, [00:34:06] you know, B-Pub Radius is moving in. [00:34:07] At this point, they're not putting a brass tap in. [00:34:09] They run demographics maybe two to three miles [00:34:11] from the downtown center. [00:34:13] And there's higher income families within five miles, [00:34:15] Gulf Harbors, Gulf Harbors, Woodlands, Seaforest, [00:34:18] that, in my opinion, we need to target [00:34:19] that do have the money to be able to afford childcare [00:34:21] and work out of this facility. [00:34:23] So thank you for bringing that up. [00:34:25] It's been something that's been on my mind. [00:34:27] We have to look further out than just the core downtown. [00:34:29] Everyone knows that the median income [00:34:31] for downtown Newport is very low, [00:34:33] but it's much higher in very close areas [00:34:36] that are very close proximity to the downtown as well. [00:34:38] Yeah, you're gonna see a graph there in a moment [00:34:40] jumping to that point, right? [00:34:42] Within 15 minutes of this facility, [00:34:43] and primarily driven by the very local. [00:34:46] So we don't just break down 15, 30, right? [00:34:48] We've got 5, 7, 10, 15, 20, 30, 45, and 60 minutes [00:34:52] that we have the data on. [00:34:54] Median household income, only 38,000. [00:34:57] When you get out beyond 15 minutes into 30 minutes away, [00:34:59] you're jumping all the way up to 47,000, [00:35:01] and it's pretty consistent across most of the other areas. [00:35:04] So if you look at that, [00:35:05] and you think about the cost of living, [00:35:07] which in the Tampa metropolitan area [00:35:10] is lower than the national average, [00:35:11] obviously no surprise there. [00:35:12] The index that we've got is a 93.2% cost of living. [00:35:16] What we do is we use a number to adjust [00:35:20] the actual median household income [00:35:22] to what it costs to live there. [00:35:24] And so if you look at the national average [00:35:25] for median household income, it's just under 52,000. [00:35:29] If you adjust that down by the 6.8% [00:35:34] that you are lower than the national cost of living, [00:35:37] you still have a huge disparity [00:35:39] in the median household income [00:35:41] that is actually earned versus [00:35:42] what the average cost of living would be. [00:35:44] So within 15 minutes, that 38,000 is almost 20% [00:35:48] under what the average cost of living is across the country [00:35:52] relative to median household income. [00:35:53] So it's a great point to say [00:35:55] there is going to be supreme price sensitivities [00:35:58] within your 15 to 20 minutes, as I said, [00:36:01] your most regular potential users. [00:36:04] And so that leads us to something [00:36:07] I'll touch base here on a minute. [00:36:09] You mentioned looking at some of the information [00:36:13] geographically, so we've got two maps here, [00:36:15] population density, showing the same exact drive times. [00:36:18] I'm using a clicker on this side. [00:36:19] I know you can't all see that, Mr. Davis, [00:36:22] Mr. Starkey in particular, [00:36:24] but the squiggly red line is 15 minutes, [00:36:27] then 30 minutes at the reddish purple line. [00:36:30] The true purple line is 45, and then there's 60. [00:36:33] If you look at this median household, [00:36:35] or sorry, population density, [00:36:37] darker red towards the red, orange and red [00:36:40] are more densely populated than the yellow areas. [00:36:43] And so when you think about population [00:36:46] right around this 15 minutes, [00:36:48] you are much denser than you are [00:36:50] when you get to about 30 minutes away. [00:36:52] Additionally, there are those other pockets. [00:36:56] So when you start thinking about special events [00:36:58] having a larger draw than your regular memberships, [00:37:02] this starts to reach into the fact [00:37:04] that you do have great population density here [00:37:06] relative to some other areas. [00:37:07] Capitalizing on that will be important [00:37:10] in terms of growing the number of residents [00:37:12] or the number of members. [00:37:14] Conversely, this is median household income. [00:37:17] So if you look, different color pattern [00:37:22] or different colors, I should say, [00:37:23] but same concept, darker is more. [00:37:25] So in this case, household income within 15 minutes, [00:37:28] you saw orange and dark orange areas [00:37:31] in the same 15 minute drive time to the facility. [00:37:35] And you have really low household income. [00:37:38] You do have some pockets within 30 minutes, [00:37:40] particularly to the Southeast, [00:37:42] as you start going towards the, that's right, [00:37:45] towards the Trinity area, et cetera. [00:37:48] You have more competition in these areas [00:37:50] because when you build a new facility, [00:37:52] you do a market study and a demographics study [00:37:55] if you are a particularly a private operator, right? [00:37:59] All of the LA Fitness, SNAP Fitness, [00:38:02] 24 hour for all of those, [00:38:04] they're basing their choice of where to build [00:38:07] based on, in many cases, an overlap of maps, [00:38:10] just like these. [00:38:11] So if, [00:38:15] that's right. [00:38:16] So if I were to click back and forth, you've got. [00:38:18] Why did by going to Trinity? [00:38:20] Exactly. [00:38:21] And looking at the future growth, [00:38:22] which is on this slide as well, [00:38:24] it's another interesting point, right? [00:38:25] Growth projections within the next five years, [00:38:27] the rest of the area, 30, 45, 50 minutes away, [00:38:32] above five and a half percent. [00:38:34] The 15 minutes here is three, you know, 3.3%. [00:38:37] So we expect lower growth. [00:38:39] Part of that is because you already have [00:38:40] a great population density. [00:38:43] Another part is because, you know, this isn't an area, [00:38:46] that's exactly right, that has a lot of opportunities [00:38:48] for additional residential development. [00:38:52] So the last piece there, [00:38:53] and I'm going to click back and forth here [00:38:54] just so you can sort of see what we look at [00:38:56] when we overlay, you know, and again, [00:38:59] where the star is, where the facility is, [00:39:02] lots of people, not a lot of money. [00:39:04] So I mentioned before, extreme price sensitivity. [00:39:07] I want to bring up this membership fees [00:39:09] from a market data perspective. [00:39:10] We actually looked at, I think it's 55 or so, [00:39:14] competing facilities, [00:39:15] membership-based fitness facilities that could draw. [00:39:19] And of course, not all of these will draw the same [00:39:21] because some of them are, you know, 45 minutes away. [00:39:23] But if you were to look at the pricing, [00:39:25] we've got, here's an example of a CrossFit gym, [00:39:28] which is always a much higher fee. [00:39:31] That's $135. [00:39:32] If you look at where the New Port Richey [00:39:36] Recreation Aquatic Center is, [00:39:37] for the single month resident option, [00:39:39] this is the blended average of the resident [00:39:41] and non-resident average. [00:39:43] It's $60 per month, [00:39:44] if you're going to pay for a single month. [00:39:46] If you look at the three month option, [00:39:50] which is $120 cash out of pocket at the time you sign up, [00:39:54] not commit for three months and pay three times, [00:39:57] it's one time. [00:39:58] The average between the resident and non-resident is $120. [00:40:02] And over those three months, it's $40. [00:40:04] So you are higher than the Y, [00:40:05] higher than the other facilities in both of those areas. [00:40:09] When you get into the annual membership, [00:40:12] and if you were to divide that out, [00:40:14] it is only $20 per month, [00:40:16] which is much more in line with [00:40:18] the competitors in the market. [00:40:19] However, again, it's $240 average out of pocket [00:40:25] when you sign up, not $20 per month. [00:40:28] And so that's difficult in a community [00:40:30] that has limited household income, [00:40:33] limited expendable income. [00:40:34] You have listed there though, [00:40:36] don't have aquatic centers. [00:40:38] That's absolutely right. [00:40:39] It is true. [00:40:40] Those are your 3000 square foot gym. [00:40:43] Yep. [00:40:44] Many of them, obviously 24 hour as well. [00:40:45] So you look at the blend of amenities [00:40:48] and what they're being offered. [00:40:48] 24 hours isn't a big deal. [00:40:50] You're not going to find a woman [00:40:51] that's going to go into a 24 hour facility by herself. [00:40:55] I would disagree with that [00:40:57] because convenience sake and price, [00:40:59] whether they use it in the middle of the day, [00:41:00] there are a lot of women at those gyms [00:41:02] because it's only 10 or 15 bucks a month. [00:41:04] But I meant the 24 hour that. [00:41:06] Yeah. [00:41:07] Midnight to six in the morning. [00:41:08] That's what I'm saying. [00:41:09] You're right. [00:41:09] But the price is right for a lot of those people. [00:41:12] Implementing a new management system [00:41:14] desperately needed based on your findings [00:41:17] would make it easier to build monthly. [00:41:18] Absolutely. [00:41:19] Well, it would be an absolute requirement. [00:41:21] So you're on rec track, [00:41:23] which I believe has that capability. [00:41:26] It's not a very good system to be candid again [00:41:29] for membership based fitness. [00:41:30] You're not buying the whole package. [00:41:31] That's right. [00:41:32] You don't have all the modules loaded. [00:41:33] Right. [00:41:34] But you're going to see some of the financial data [00:41:37] and it is even more evident [00:41:39] that you need to have a better solution [00:41:41] and a monthly solution that gets you in line [00:41:44] with where you should be. [00:41:46] Well, I mean, the monthly one, [00:41:50] the common denominator is that [00:41:52] you look at your monthly bank statement [00:41:56] and there's that 10 bucks I get to go to the gym. [00:41:58] You don't cancel it. [00:42:00] You say, I'm going to go. [00:42:02] But the fitness center is depending [00:42:04] on that 10 bucks every month. [00:42:06] That's right. [00:42:07] And it would allow EFT as well for payment. [00:42:08] Absolutely. [00:42:09] Yep. [00:42:10] And I hate to use this term, [00:42:14] but the dirty secret of the fitness industry, [00:42:17] which is the worst kept secret ever [00:42:18] is that they make their money on people who don't come. [00:42:20] So when they have, [00:42:23] and that's the reason that any of the anytime fitness, [00:42:25] nap fitness, 24 hour fitness, plant fitness, [00:42:27] that's the only reason that they are still around [00:42:29] because the hassle of canceling for $10 a month is more, [00:42:33] even if you're not going, [00:42:35] it's more of a hassle than just letting it go [00:42:37] for 10 more dollars or 20 more dollars [00:42:40] or 30 more dollars as you go down the line. [00:42:41] That's why these places are still in business [00:42:44] with, in some cases, relatively poor service [00:42:47] or relatively inferior gyms or service offerings. [00:42:51] But it's so easy to sign up during a no membership [00:42:55] or no joint fee, low membership time period. [00:42:57] And it's so hard to cancel that people just stay on it. [00:43:01] Well, it's also that in the back of their mind, [00:43:03] motivation doesn't work. [00:43:05] That's right. [00:43:06] And [00:43:08] Anything else for city services and everything else, [00:43:11] if we tried that policy, [00:43:12] we just add to the number of people that would be unhappy. [00:43:17] And if we have a limited pool to draw from, [00:43:20] we've eliminated them because they're upset [00:43:24] because they can't exit. [00:43:26] Yeah. [00:43:30] We tried that where it was a monthly bill [00:43:34] and Brian can probably explain it better, [00:43:36] but it was a three leg type stool. [00:43:39] It was rec track, I think PayPal and internet. [00:43:42] And if any one of those three were down, [00:43:44] it wasn't functioning. [00:43:45] And we wound up losing thousands of dollars [00:43:48] that we couldn't collect. [00:43:49] And it was reporting cards stolen [00:43:51] and any number of problems that we had to stop [00:43:53] until we can get a different software. [00:43:56] Correct. [00:43:57] My concern with the new management system, [00:43:58] which obviously is a top priority, [00:44:02] in my opinion, not to get off track, [00:44:03] but our IT department is stretched thin. [00:44:05] I think we need more focus on our Facebook. [00:44:07] I think we need more focus. [00:44:08] I mean, I own a franchise insurance agencies, [00:44:11] 110 of us, and we have one person [00:44:14] that manages our website and our Google traffic. [00:44:16] That's all he does. [00:44:17] And so I would say our IT department is stretched thin [00:44:20] as far as I think we could utilize our homepage [00:44:22] and our website and Facebook [00:44:24] much more efficiently than we are. [00:44:25] But prior to us hiring anybody new, [00:44:29] is it a user friendly enough [00:44:31] or whatever company we decide to go with, [00:44:33] we just come in, train staff and it's over. [00:44:35] We wouldn't have to bother Brian or his staff or what's. [00:44:38] Yeah, all of the major companies that we recommend [00:44:42] and they're not, you know, it's not inexpensive, [00:44:46] but it's also not, it's not cost prohibitive. [00:44:49] And the hassle and the lost memberships [00:44:53] and the lack of revenue that you have, [00:44:56] it would justify a new system. [00:44:57] And all of those major systems answer your point directly. [00:45:00] have either in-house implementation experts or they have companies that they [00:45:05] work with locally that are the outsourced consultants for getting it [00:45:09] set up, getting the data clean, getting the data in, training your staff and going. [00:45:13] So we don't have to bother IT, they come in, train staff and we're done. And we [00:45:16] wouldn't recommend that that's an IT piece either because you know one of the [00:45:21] keys to operating effectively is having key users, people at the facility level [00:45:25] who are empowered to do what they need to do and having the city IT staff that's [00:45:30] not something that you want to be answering calls you know four times a [00:45:33] day saying hey we need to add a program or whatever else it may be. So absolutely. [00:45:43] Were they recommending? What are you going with? [00:45:50] We have some recommendations. At least some options and we [00:45:55] always recommend allowing you to you know go through the in-depth demos [00:46:02] together but yeah we've got some. So we're gonna touch base on on two of the [00:46:07] audit pieces. This is the membership audit. I'm gonna say before we get [00:46:13] in the audit, very candidly again, the data that is available because of [00:46:19] RecTrack as an operating software and because of the way that it's set up and [00:46:23] implemented, the data is not great. There are a lot of areas where we [00:46:27] have questions that there's no way necessarily to answer. And so [00:46:32] before we start talking about software implementation, one of the keys is [00:46:37] cleaning data before you try to transfer bad data in. So all of this is [00:46:44] graphical for you on the membership side. It should be pretty easy. I'm [00:46:47] gonna go through it pretty quickly. This one is the least telling of them. This is [00:46:50] just a spread of members by age. And importantly, we should recognize that we [00:46:57] had to take some data out. So for example, is the number 73 zero-year-olds? So we [00:47:02] had zero-year-olds of 594, I think, members that we had ages on. 73 of them [00:47:09] were zero years old and one was one year old. So there's some sort of a [00:47:14] back-end function where if you don't fill in the age or if you skip it or if [00:47:18] something is incomplete, age goes to zero. So we had to take that out. [00:47:22] Additionally, SilverSneakers, which is by far your largest membership category, is [00:47:26] not counted in this. There's no tracking in that system because SilverSneakers [00:47:30] is managed through Healthways. I won't get into the details. But when you get [00:47:34] into the above 65 category, this doesn't count the many, many SilverSneakers [00:47:39] members that you do have. So when we add, sorry, this is in the conversion from our [00:47:45] MAC to yours. This was, I promise it's the circle. But when we add SilverSneakers [00:47:50] in, you're gonna see a balance here. So this is a pie chart showing the age of [00:47:55] members by category. And this isn't the category that directly relates to your [00:47:59] categories of membership. It's what relates to the data that we have. So you [00:48:04] can see it really cleanly and plainly. 36% of your members are over [00:48:08] the age of 65. Not surprisingly, you have an older population. But additionally, [00:48:14] there is a real benefit to having a SilverSneakers pass relative to anything [00:48:19] else. And SilverSneakers, you may all be aware, so I apologize if this is a [00:48:25] very basic comment, but the SilverSneakers program is set up through [00:48:28] insurance companies to allow people on those insurance plans that have [00:48:32] SilverSneakers, above the age of 65 typically, to access fitness centers, [00:48:38] particularly with aquatics programs, for free. It's no cost to them. They get [00:48:43] in for free. The report run out of the software is generated. It's sent off to [00:48:49] Healthways, and the reimbursement from the insurance companies comes back as [00:48:52] $3 per visit. So those members who are SilverSneakers and coming, if they come [00:48:57] twice a week, over four weeks, you just got eight visits worth $3 a piece, $24 a [00:49:03] month for that member. Whereas in a traditional membership, they would [00:49:07] obviously be paying, in many cases, much more. [00:49:19] You're saying they aren't going to have any child care. Well, even go ahead and add 13, [00:49:25] 14. Yeah, of your current members. Only 24% would be using child care. Of your current [00:49:31] members. But we heard from non-members that one of the reasons they choose the [00:49:34] Y is because they've got kids. So here's the demographic of the community. It's a [00:49:43] great point. So if we look at the breakdown by percentage of those same [00:49:48] age categories of your community, you're going to see that you are pretty good in [00:49:52] the 0 to 14. You're at 13.13% that category. Sorry that there are two [00:49:58] decimals that you're using. But 13.1% of your membership base is [00:50:03] between the age of 0 to 14 and 15.7 of the community is. But the one area that [00:50:09] is vastly overrepresented is above 65. So you see that you've got 35.7% of your [00:50:17] members are above the age of 65 and only 24.3% of the community is in that age [00:50:28] category. So you'll see where you are least represented is the age that we've [00:50:32] broken down here of 15 to 44. We could change that but if so if we change it to [00:50:37] more like 25 to 44 those would be the people of you know child you know with [00:50:43] with with children and that would be a bigger percent of your population that [00:50:48] is not represented through membership here and we think that's a one of the [00:50:51] reasons. Absolutely. They're the ones that are working to pay the the Social Security [00:50:57] so that 65s can get the insurance and come and work out. [00:51:05] You've got your age groups there in your talk about demographics we all tried to [00:51:10] figure out which ones we could slip back a couple of sections to but but but [00:51:15] again you know the you know but then it goes back to your conclusions of hours [00:51:23] amenities services and obviously we're I guess we're going backwards about this [00:51:29] because we've already got the facility we're not building the facility so [00:51:33] whatever whatever matrix they used to build the facility in 12 years ago at [00:51:40] the price that they did we have to kind of evolve it from where it is today. [00:51:45] Absolutely and and so I'm gonna jump way to the end right the recommendation it's [00:51:49] not way to the end at this point it's several slides but you know when we say [00:51:54] that one of the things that operationally you should consider and [00:51:57] from a physical facility perspective that you could should consider is the [00:52:00] addition of child watch. This is not a community that needs a a 100% of [00:52:05] operations staffed child watch. In fact the Y doesn't even do that they have [00:52:10] their peak hours and they staff child watch during that time. We would [00:52:13] recommend that spaces are flexible and that the equipment is purchased so that [00:52:17] you can offer even if it's not every day Monday Wednesday Friday here's your [00:52:22] 7 a.m. to 10 a.m. time when we have child watch available and here's your after [00:52:26] work hours on Tuesday and Thursday that you have child watch available. It's not [00:52:31] it doesn't have to be a permanent full staff solution it needs to be fitting to [00:52:35] the opportunity in the market. So all of that and that second row is in my [00:52:46] opinion a target market we want moving to our city or competing with Trinity [00:52:49] these other areas and granted we are going through a revitalization and doing [00:52:53] changes to improve the demographics we have the water Trinity has open space [00:52:57] you know but this is what's so important to me as far as child watch and things [00:53:02] like that is creating amenities that will attract the 37 year olds with kids [00:53:07] to our area. Absolutely. Rather than just having to run down rentals. So [00:53:12] couldn't agree more. You're talking about basically maybe 15 hours a week. Yeah [00:53:16] something in that range and we could you know we can break it down but the point [00:53:21] is you know operationally that shifts you need to have the flexibility if it's [00:53:26] 15 hours and that's enough keep it at 15 if it's too many scale it back and if [00:53:29] it's not enough make that change but you only get that change if you have the [00:53:33] flexibility and you can be nimble from your operations to have a space that can [00:53:37] be used for that but doesn't always have to be used for that you don't want any [00:53:41] space in your facility locked when it's not in use you want where the equipment [00:53:45] is stored to be locked so that room remains flexible and could be rented out [00:53:48] by the quilting group during you know the early afternoon hours when people [00:53:53] aren't coming with. So let's talk volume then. This is the same number and to your [00:54:01] point again it's 15 to 44 not 25 to 44 but but that's your biggest population [00:54:07] segment even though you've got an you know an older population relative to [00:54:10] most of the country and most of the Tampa Bay Area you only have 44 of the [00:54:15] hundred and eighty thousand people only 44,000 are age 65 but over 60,000 are [00:54:20] between that 15 to 44 age and if you look at the percent of those people that [00:54:24] you're capturing right the percent represented by that 36% of your total [00:54:29] membership base is is above the age of 65 translated into real numbers that's [00:54:35] 2% of the people within 15 minutes are members of your facility. [00:54:42] Because especially if we're looking at a competing against the YMCA taking that [00:54:48] they're not going to drive 20 minutes to come here when they can drive five [00:54:52] minutes to the YMCA providing the same thing so trying to pull them into our [00:54:58] you know our section of 183 I have a real hard problem doing it. We're not going to get there. [00:55:04] We don't we don't balance up against the Y meaning that you know our workout [00:55:12] facility is probably a third the size of the Y's and it's not the first thing you [00:55:18] walk into when you walk into the Y and then they have the gymnasium and they do [00:55:22] things there they have one pool we have three pools so you know it's it's being [00:55:29] able to compete with them with bigger better and not having to feel like [00:55:35] you're being you know summarily dismissed because you aren't a Trinity [00:55:40] ite but you are a New Port Richey person so you know you have to set those those [00:55:45] new competition levels. Yeah I think it's a combination of everything right you [00:55:50] need to be you need to decide so so we have a saying and I don't really like it [00:55:57] but our CEO uses it all the time so I have to use these on my business [00:55:59] partners but he says be what you is not what they are right and so one of the [00:56:06] things to determine is what do you want to offer and what what are you going to [00:56:12] be known for what are you going to be right offer that at a fair market value [00:56:16] and then market it to get it out there and you're absolutely right you will not [00:56:22] pull from a hundred and eighty thousand people as if there was no competition [00:56:26] the way that we actually do our financial forecast is we start with the [00:56:29] population density we look at every competitor we put them on a map we [00:56:34] figure out what their market share should be on that map and where people [00:56:37] are not going to they're not going to drive by a $10 a $10 a month fitness [00:56:42] facility to come to a $60 a month fitness facility if they have to pass [00:56:47] that other one and it's less convenient for them and they're going into the [00:56:50] middle of a neighborhood so we look at all of those factors but the way to [00:56:53] change from where you are now and what your capture opportunity is which again [00:56:57] to your point you're not going to pull people that live five minutes from the [00:57:00] Trinity Y for the same price or more to come to this facility but in order to [00:57:06] change what you could capture you have to change what you do offer and how much [00:57:11] you offer it for so it's a it's a combination it's why this meeting to [00:57:14] miss man's credit was so important we can't go forward with a financial [00:57:18] forecast that hasn't had this information discussed talked about and [00:57:21] considered because we can give you the numbers with the assumptions behind it [00:57:25] but if you're not if you're not invested in a new operating software new [00:57:29] marketing tactics new systems and then also the physical amenities that are [00:57:35] offered those numbers won't be achievable nor will they be nor will [00:57:41] they be realistic credible [00:58:05] Yeah [00:58:13] right I think [00:58:35] there's nothing closer to any of the waterfront communities we're not [00:58:43] touching we're not pulling those people in right now Oh Sims Park is very much [00:58:49] so they will come here if the product this year at least that's what it tells [00:58:54] me that's exactly what it says so let's get in the financial data I apologize in [00:59:01] advance for how much depth I'm going to go into on the first slide I promise I [00:59:05] won't go into that level of depth on the rest of them not the first slide the [00:59:08] second slide the first slide is what everybody knows you've got increasing [00:59:11] costs the red lines are the last three years your expenses so they've gone up [00:59:15] from 1 0 2 1.0 2 million dollars up to 1.1 1 up to 1.25 last year expenses are [00:59:24] increasing revenue is trending slightly down but still down and your net [00:59:28] operating income has gone from negative five hundred and sixty thousand dollars [00:59:31] to negative eight hundred and thirty one thousand dollars in three years [00:59:35] that's not a trend that is sustainable and despite the fact that the objective [00:59:39] of this change or transfer may be focused on service the community it also [00:59:45] has to be about fiscal responsibility and so the changes that we would [00:59:48] recommend you'll see what our current preliminary recommendations are focus on [00:59:53] ways to get this right before or at least simultaneous to also investing in [01:00:00] you know, big facility upgrades or changes. [01:00:04] The question always comes back to, [01:00:06] and since you are involved across the country [01:00:09] and you've done so many and you actually operate some, [01:00:13] do you have a facility that you can point to [01:00:15] in your portfolio that is totally break-even [01:00:19] or that makes a profit? [01:00:21] Oh, yeah. Absolutely. [01:00:23] And is it private-owned or is it city-owned? [01:00:26] So I'll give you an example of, [01:00:30] let me give you the very best example. [01:00:31] We opened just over a year ago. [01:00:35] It's called The Hub in Marion, Illinois. [01:00:36] 64,000 square feet. It was built. [01:00:39] The whole city has 17,000 people. [01:00:42] Didn't have a fitness, recreation, [01:00:44] wellness, community center. [01:00:46] That 64,000 square feet includes fitness center space, [01:00:51] an indoor pool, which is a lane pool and recreation pool, [01:00:55] and two basketball courts. [01:00:56] That's all that's in the 64,000 square feet. [01:00:59] That facility, we projected, [01:01:02] would break even for the first time in year four. [01:01:06] That is, not covering its debt service, [01:01:08] but operationally break-even. [01:01:09] We opened it. [01:01:11] So we opened it and we took them [01:01:13] through the first six months of operations, [01:01:15] their first full year of operations. [01:01:17] And that's a publicly, it was publicly, [01:01:20] it is publicly owned. [01:01:21] It was privately managed through opening [01:01:23] and just the first six months of operations. [01:01:25] We turned it back to the city [01:01:26] after six months of operations. [01:01:28] It was operationally positive [01:01:30] in its first year of operations. [01:01:32] It is- [01:01:32] But how much did that facility cost? [01:01:34] $16.5 million, not including land. [01:01:38] So it finished for, [01:01:42] it finished for $260 a square foot, [01:01:45] or something like that. [01:01:47] Indoor pool, you know, costs huge dollars, [01:01:51] relative to drive spaces. [01:01:53] But yes, it is possible. [01:01:56] It is not common. [01:01:58] One of the biggest changes that we see right now [01:02:00] is sort of towards the privatization [01:02:02] of publicly owned recreation centers [01:02:04] and community centers. [01:02:05] It's sort of the wave, because essentiality, right? [01:02:09] You are all involved in administering to this city. [01:02:12] And if you have the option of, [01:02:14] do we put more money into the recreation center, [01:02:18] or do we fix a broken water main [01:02:20] that's going to be responsible [01:02:21] for delivering clean water to our residents, [01:02:23] one of those is essential and one of them isn't. [01:02:26] So when you look at this and you look at performance [01:02:28] and you look at having to at least stabilize, [01:02:30] if not reverse course, [01:02:33] on some of the trends, [01:02:35] which, you know, as facilities age, [01:02:37] they typically cost more to operate, [01:02:40] it's much more difficult to do from the public sector. [01:02:42] But even at the public sector, [01:02:44] there are plenty of examples of facilities [01:02:46] that are sustainable and profitable. [01:02:52] 70%. [01:02:54] Half of that. [01:02:55] That's right. [01:02:56] So your cost recovery, 70%, [01:02:58] that is absolutely true across the country [01:03:01] for average rec centers. [01:03:02] But even 70%, you know, [01:03:04] if that's a million dollar operating budget, [01:03:07] $300,000 a year is nothing to sneeze at. [01:03:10] So, you know, the optic of financial sustainability [01:03:14] and fiscal responsibility is, you know, coming to this. [01:03:17] But at the same time, you know, [01:03:20] that's a negative picture, [01:03:21] but the importance of sports, recreation, [01:03:23] and wellness is more critical than ever. [01:03:25] Kids are dropping. [01:03:26] The community, we don't mind using numbers 300,000. [01:03:29] We don't mind putting that in as a city, [01:03:33] what the citizens want. [01:03:34] That's right. [01:03:35] If it's a service to the community, [01:03:36] if it's improving the health of the community, [01:03:39] it's oftentimes worth the investment. [01:03:41] That's the decision to be made. [01:03:42] We would expect that these trends [01:03:43] in terms of net operating income are concerning. [01:03:49] You know, if it continues to drop like that, [01:03:51] this is not an asset that, you know, [01:03:54] that can be sustainable in perpetuity. [01:03:56] So the changes, you know, both from a physical [01:04:00] and from an operational perspective, [01:04:02] there are things that I think, you know, [01:04:03] need to change to reverse this, [01:04:05] and that's what we're figuring out. [01:04:07] So let me give you one of the most telling, simple chart, [01:04:11] one of the most telling stats that we can give you. [01:04:13] Your revenue, if you look at the revenue [01:04:16] that you are generating from members [01:04:18] and from non-members who are coming to use it, [01:04:20] 60% of your revenue comes from drop-in fees [01:04:23] and 40% comes from your members. [01:04:25] People aren't buying this facility [01:04:27] because they are invested in this as their home base [01:04:30] that they come to on a regular basis [01:04:31] and they are willing to pay for it regularly. [01:04:34] They are using it when they choose to use it [01:04:36] and not when they do not want to use it. [01:04:39] You are not generating a home for members [01:04:43] as much as any other facility in this community. [01:04:45] But wouldn't that go back to the idea [01:04:47] of the annual fee versus the monthly? [01:04:49] There are a number of factors. [01:04:51] That is definitely, we believe. [01:04:52] But also, your daily fees are calculated, [01:04:55] and you'll have to make sure [01:04:59] that I understand your definition of daily fees [01:05:03] because daily fees could either be [01:05:06] to come in and use the basketball court, [01:05:09] use the fitness center. [01:05:10] Most of the daily fees are driven through the summertime [01:05:13] when it's for the pools. [01:05:15] So I, and that's the three main amenities [01:05:20] that surround that facility. [01:05:23] And I think that was the main reason [01:05:25] the former city fathers thought [01:05:27] that it was good to put three in, [01:05:30] even though we know they undersized one very poorly. [01:05:34] But that being the case, [01:05:36] your daily fee element is really driven by that time [01:05:41] that they're coming to use for the swimming pool. [01:05:43] Is that fair? [01:05:44] Yes, that's fair. [01:05:46] That said, that's fair anecdotally. [01:05:48] The operating software that you have [01:05:50] doesn't allow you to check someone in [01:05:52] as a $5 drop-in fee for basketball versus aquatics. [01:05:56] So it's hard to track, but you're absolutely right. [01:05:59] If you look at seasonality of spending, [01:06:02] the drop-in fees are much higher [01:06:03] during the months of the pools open than when they're not. [01:06:06] We don't think that you shouldn't have [01:06:08] a large revenue from drop-in. [01:06:10] We think that you should have a larger revenue [01:06:12] as a percent from membership. [01:06:15] So this is the one that I said [01:06:18] I was going to go into more detail on, [01:06:20] and there are several slides like this. [01:06:21] Let me just introduce this concept. [01:06:22] It's one of the most, again, I'll be candid, [01:06:26] it's one of the most concerning pieces [01:06:28] related to revenue generation at this facility [01:06:31] and your operating software. [01:06:32] You don't have a discount, [01:06:34] a formal discount system in place. [01:06:36] If you go to sign up at a YMCA, for example, [01:06:39] there's a need-based scholarship application [01:06:41] where you can get a discounted rate. [01:06:44] It's not in place here. [01:06:45] So what we would expect is that [01:06:46] what you say you charge and what you collect [01:06:49] should be very close or exactly even. [01:06:54] Yes, correct. [01:06:56] But that's not the case here. [01:06:57] So this is the one-month membership. [01:07:00] So this is February, [01:07:02] the middle of February of this year [01:07:04] from 365 days before that. [01:07:06] So this is one year. [01:07:07] You sold 225 total [01:07:11] one-month memberships during that time. [01:07:13] This is the actual breakdown, [01:07:15] resident versus non-resident. [01:07:17] There was zero sales here, etc. [01:07:19] This is the list price. [01:07:20] If you are a resident, [01:07:21] it's $53 for your one-month membership. [01:07:23] If you're a non-resident, single adult, $66.25. [01:07:27] If you multiply those out, [01:07:28] you would get $848. [01:07:30] If you add all of those up, [01:07:31] you would expect $15,698.40. [01:07:37] Your actual revenue that you collected [01:07:39] for those 225 sales is $3,991.73. [01:07:46] There is no explanation for this in the reports. [01:07:53] This is what the reports say the revenue is, [01:07:55] but there's no way to reconcile this [01:07:58] as we met with the person who runs these reports [01:08:02] and is in charge, Ms. French, [01:08:04] and is in charge of the payroll [01:08:07] and the financials in general. [01:08:10] There could be any number of reasons for this. [01:08:12] We simply don't know what it is. [01:08:14] I'm going to be a rec center employee. [01:08:15] You're making some serious money on the side. [01:08:19] Just kidding. [01:08:20] Well, I do want to address that. [01:08:22] We're not saying that it doesn't happen, [01:08:25] but in this case, this is not the reason. [01:08:29] The reason is not because people are taking cash, [01:08:32] pretty clearly, because if you were going to take cash, [01:08:35] you wouldn't just enter, [01:08:37] I had a sale of $53 [01:08:39] and only put $5 in the bucket [01:08:42] and keep the other $48 [01:08:43] because that's an immediate trail back. [01:08:45] So that's not the issue. [01:08:47] This is not pocketing money. [01:08:49] This is some combination [01:08:52] of how the information is entered [01:08:55] and how the reports generate. [01:08:57] So the problem here, clearly there is a problem. [01:09:01] That's $11,706 [01:09:03] that you would expect to have generated [01:09:05] that you didn't generate. [01:09:06] We don't expect that, especially on these ones, [01:09:08] it's a different, it could be a different scenario [01:09:12] if you're collecting $7 cash for a drop-in [01:09:14] for kids coming to the pool. [01:09:15] That could happen. [01:09:17] But this is a reporting problem [01:09:19] and it's a system problem. [01:09:21] And we don't know where the problem is. [01:09:22] We don't know if it's actually less revenue [01:09:25] that you should, that this number is right [01:09:27] or this number is right [01:09:28] and there's a problem actually collecting the revenue. [01:09:30] So the actual revenue could be off, [01:09:31] it could be $8,000 or $10,000, [01:09:33] but there's a quirk in the system and you don't know. [01:09:35] So we don't know if we're actually collecting that [01:09:37] where you can just go on what's showing being collected. [01:09:40] That's right. [01:09:41] We know that it's 225 people [01:09:42] that should be paying these amounts in full. [01:09:45] Multiply them across, that's your revenue [01:09:46] and that's not what's actually. [01:09:48] So obviously that's a huge concern and it should be. [01:09:51] That is across all categories. [01:09:53] That's one month membership. [01:09:55] This is three month, [01:09:56] the three month membership variance is $25,000. [01:10:00] The annual membership is only $9,000, [01:10:03] you know, relative only. [01:10:08] Factored in the times that we did sales. [01:10:12] So. [01:10:13] Have. [01:10:14] Annual. [01:10:16] Sell them. [01:10:17] Ship we did, sell them. [01:10:19] So that's not factored in because we, [01:10:22] that data doesn't exist what the rate would have been [01:10:25] at the time because. [01:10:26] That one month membership surely wouldn't, [01:10:29] go back to the one. [01:10:30] We have a sale in February? [01:10:32] The annual ship sale. [01:10:34] That was 365 days though. [01:10:36] Okay. [01:10:36] It just pulled. [01:10:37] Oh, February through February. [01:10:38] Yeah. [01:10:40] Yeah, but that you still, go back to that. [01:10:43] Yeah, that. [01:10:44] So it's the one month and it's the daily passes [01:10:46] that are most concerning [01:10:47] because you don't have sales there. [01:10:48] So the data doesn't allow us to say [01:10:51] what the actual number is. [01:10:53] The total of this, so again, [01:10:54] there's a one month, there's a three month, [01:10:56] there's the annual and there's the day pass variance. [01:10:58] This is the one area where you could have money walking. [01:11:01] We interviewed your staff. [01:11:02] I don't want to say at any pace, [01:11:04] you know, that it doesn't happen. [01:11:06] You got pretty good staff there on the front line. [01:11:07] I would be very surprised. [01:11:09] Well, they would tell on each other. [01:11:10] Yeah, probably. [01:11:12] So, you know, keep in mind that the big number there [01:11:14] is a three month. [01:11:15] The biggest number is a three month [01:11:16] and that is likely, [01:11:18] especially because from an affordability standpoint [01:11:20] and when you offer those discounts, [01:11:21] that number is probably inflated. [01:11:23] And so we're not saying that the total variance [01:11:25] is actually this $56,000, [01:11:27] but across the board, [01:11:29] your operating software does not let you operate [01:11:32] in the level. [01:11:33] You don't know what's going on basically. [01:11:34] That's right. [01:11:34] And so. [01:11:35] And that's absurd. [01:11:36] So the point with all of this is [01:11:40] you've got to move on operational changes, [01:11:43] particularly on your operating software, [01:11:45] so you can reconcile this [01:11:46] and figure out where to make the changes. [01:11:50] So, you know, again, [01:11:53] these numbers being off a little bit, [01:11:55] that happens in every scenario. [01:11:56] These numbers on one month and daily passes [01:11:59] being off an average of almost $11,000, [01:12:03] that's really concerning. [01:12:04] You know, if there are $22,000 [01:12:06] that we can't account for [01:12:07] in terms of there are no daily [01:12:09] or there are no discounts for those, [01:12:13] that's real revenue. [01:12:14] And again, it might not be [01:12:17] that the revenue is the problem. [01:12:18] It might be that the way that people are entered [01:12:20] is the problem. [01:12:21] So, for example, [01:12:23] you've got your primary member [01:12:24] and your secondary member. [01:12:26] Your secondary member [01:12:27] should not have any revenue attached to it. [01:12:29] And so it's possible [01:12:30] that there's a mistranslation [01:12:32] in terms of someone [01:12:33] who should have been secondary [01:12:35] is entered in as a primary member. [01:12:37] If they didn't pay anything, [01:12:39] then that shouldn't have been revenue. [01:12:41] So, the numbers are off. [01:12:42] That $225,000 is off. [01:12:44] So, hopefully, it's not just [01:12:45] we're getting that much less money coming in, [01:12:47] but the fact that we can't. [01:12:49] Oh, we don't know. [01:12:49] That we don't know. [01:12:50] That's what's most alarming to me. [01:12:51] I mean, it's embarrassing, honestly. [01:12:53] So, you're saying like a family member, [01:12:56] you mean secondary is the family member? [01:12:58] That's right. [01:13:01] So, Crystal, speak up here. [01:13:04] Did they find this [01:13:05] or did you find this [01:13:06] and you two got together? [01:13:08] Actually, from the software. [01:13:12] That's right. [01:13:31] Yeah, and I think it's a logical next step, certainly. [01:13:34] At the level that we don't think [01:13:36] bags of cash are missing. [01:13:38] And, frankly, that wouldn't show up here anyway. [01:13:41] Right? [01:13:42] Because when you reconcile [01:13:44] what we would expect [01:13:46] is that the actual revenue [01:13:47] lines up exactly with what you have. [01:13:49] That's not where the translation is. [01:13:51] The translation error is [01:13:53] that the actual revenue [01:13:55] lines up exactly with what you have. [01:13:57] That's not where the translation is. [01:13:59] The translation error is [01:14:01] how many did we sell [01:14:02] and how much does our system say [01:14:04] because that $3,991.73, [01:14:07] that's what went in. [01:14:09] So, before that happened, [01:14:11] however it's entered in. [01:14:13] Now, let me give you an example [01:14:14] because obviously, you know, [01:14:16] this is challenging. [01:14:17] It's a software problem. [01:14:18] It's also a data entry problem. [01:14:20] There are other things like this. [01:14:22] We've got, [01:14:24] what's the number with zero? [01:14:26] There were zero sales on [01:14:28] annual group of six. [01:14:31] So, let's show that real quick. [01:14:36] Annual group of six [01:14:41] and annual group of two. [01:14:42] It's the annual resident group of six [01:14:45] at zero sales. [01:14:46] There is a number [01:14:48] that then is associated with this [01:14:50] that shows the number of secondary users. [01:14:52] The number of secondary users [01:14:54] attached to that group of two [01:14:55] is 117. [01:15:00] Sorry, 122. [01:15:02] So there are zero primary members [01:15:05] and there are 122 secondary members. [01:15:07] What that means is that you have [01:15:08] a very unfriendly software system. [01:15:11] It doesn't mean, because the software system. [01:15:13] There's no parents in this family? [01:15:17] Or no one paid for 122 people, but that's not the case. [01:15:20] The case is simply the data is really bad. [01:15:24] And we're not saying that there is a financial problem here [01:15:30] other than the fact that you're losing more money [01:15:32] on an annual basis. [01:15:33] And the revenue numbers overall [01:15:35] aren't declining significantly. [01:15:37] So we don't think that there's something [01:15:38] in the true revenue year over year. [01:15:42] What we think is that you can't be effective [01:15:46] at managing this facility without more information [01:15:50] for how that comes through. [01:15:57] That's right. [01:15:58] Revenue. [01:16:06] We know our overall annual revenue. [01:16:07] You showed us that, we just don't know how many. [01:16:08] Garbage in, garbage out. [01:16:10] That's right. [01:16:15] Again, there are very few opportunities [01:16:17] for money to leave that should have been there. [01:16:19] And so we think that the actual revenue [01:16:21] is what you need to base it on. [01:16:23] It's not a cash cow that everybody [01:16:24] would want to work there. [01:16:25] Yeah, of course. [01:16:26] How do you know how to target families [01:16:29] if the other families don't? [01:16:32] And in this case, it's not even a family, right? [01:16:34] You will offer a group of six membership [01:16:36] and they don't have to be, they don't have to show [01:16:38] that they're the same household. [01:16:40] So, you know, there are the- [01:16:42] That information, that goal is 100%. [01:16:45] Yes. [01:16:45] And you don't have it. [01:16:46] Absolutely. [01:16:47] So you're going to see it here very quickly. [01:16:50] You know, we've got recommendations. [01:16:52] The first recommendation, you're not going to be surprised [01:16:55] is you've got software. [01:16:57] We know that you've got a competent management staff. [01:17:00] You've got competent frontline staff. [01:17:02] You've got a facility that does serve the community, [01:17:06] not as well as it could, but you can't operate in the dark [01:17:09] and your operating software doesn't let you get there. [01:17:11] So- [01:17:12] We recognize the same thing. [01:17:14] We just doing the same thing. [01:17:17] We've allocated, at the end of this year, [01:17:21] we'll spend almost $800,000 [01:17:23] bringing this other city services [01:17:26] in the line with a new software system [01:17:29] because three years ago, [01:17:32] we recognized that we can't effectively run [01:17:36] a 45 or $50 million enterprise with Excel spreadsheets. [01:17:41] And, you know, it's the evolution. [01:17:44] And just like anything, it's like watching paint dry [01:17:47] or whatever, trying to get from point A to point B [01:17:50] and then the implementation with the new system. [01:17:54] And then the transition into that. [01:17:56] So this is just a, you know, [01:17:58] we've done it on the city side, on the other service side. [01:18:01] Obviously the rec center is a totally different [01:18:04] operating platform than you do anything else [01:18:08] service-wise in the city, [01:18:09] except maybe some of your water service elements, [01:18:12] depending on if you've got multiple accounts [01:18:14] under one person, but- [01:18:16] So, you know, it's already been recognized in fairness. [01:18:21] In fairness, and so I mentioned this before, [01:18:25] over the last 13 years, [01:18:26] we've worked with over 750 different communities. [01:18:29] We, at this point, on an annual basis, [01:18:32] work with over a hundred communities. [01:18:33] There is not a community in the country [01:18:36] that is equipped to recognize this type of thing [01:18:40] as quickly as it could be recognized. [01:18:42] And that's simply because [01:18:45] they're not in charge of software over everything [01:18:47] and the minutiae and the detail, [01:18:48] nor are the people at the facility [01:18:50] only in charge of the software [01:18:52] or figuring this stuff out, [01:18:53] because they have, everyone's got multiple jobs. [01:18:56] So, you know, having interviewed staff, [01:18:58] having seen that this is not an uncommon thing [01:19:00] that we uncover, you are not unique, [01:19:02] and this is not a doomsday scenario. [01:19:05] This is simply to say, [01:19:07] if this is the focus, and it is the focus of our study, [01:19:09] not the rest of the city [01:19:10] and not the rest of the recreation assets, [01:19:14] we can pull out some of the details [01:19:15] that, you know, are enlightening for this. [01:19:19] We don't expect it to be an easy, immediate fix [01:19:21] or have already happened for you. [01:19:23] That's why you hire us. [01:19:25] So it's not uncommon. [01:19:26] It's not as concerning as that $56,000 looks in total, [01:19:32] because the biggest number there [01:19:33] is probably vastly huge because of discounts, [01:19:36] but it is something that should be fixed. [01:19:37] You put it in red. [01:19:39] We did put it in red. [01:19:40] Wanted to draw that. [01:19:41] So here's the thing. [01:19:43] We believe, and this is a combination, [01:19:45] so there are four categories that we look at. [01:19:47] We do this all the time, right? [01:19:48] Staff, organization, communication, and scheduling. [01:19:52] Those are the four categories [01:19:54] that you have to address at any point. [01:19:56] And so from a staff perspective, [01:19:58] you are tight on staff, number of staff members, [01:20:01] but you should be. [01:20:02] You're losing money, and so you have to tighten up there. [01:20:04] But the staff that you have, we like, handedly, right? [01:20:08] We're not here to evaluate staff. [01:20:10] We go into those meetings. [01:20:11] It's a process, not people meeting, [01:20:13] but you don't have staff that's pocketing money, [01:20:16] and you don't have managers [01:20:17] that don't know what's going on. [01:20:18] You just have responsibilities [01:20:20] that this kind of stuff doesn't get uncovered [01:20:22] until you hire somebody who just spends weeks [01:20:24] pouring through the data, [01:20:25] like Thomas and the rest of the analyst team did. [01:20:30] Organization is okay. [01:20:33] Communication, marketing is underserved. [01:20:37] And scheduling, we could address, [01:20:40] but you need to figure out what the products and services [01:20:42] should be relative to everything else. [01:20:44] So what we honestly believe is that, [01:20:47] and these are not the objectives of the city, [01:20:49] nor are they the goals of our study, [01:20:50] but we think that there are three things [01:20:51] that can happen in short order, relatively short order. [01:20:56] Number one, we think this facility is, [01:21:00] it's not optimized from a physical perspective, [01:21:03] nor an operational perspective, but it's a great asset. [01:21:06] And for your community, for the number of people here, [01:21:09] having four outdoor pools, [01:21:11] some of the best basketball courts in the area, [01:21:14] recreation space and community space [01:21:16] that can be rented to accommodate groups. [01:21:18] This is a great community asset. [01:21:20] We think that it can be better in terms of how it serves. [01:21:25] We think that with changes to the operating software [01:21:27] and the programs and some of the other areas, [01:21:30] that you can increase the number of people, [01:21:31] not just the ways that it serves the existing people, [01:21:35] but the number of people that it serves. [01:21:37] And we believe that financials will follow that [01:21:40] because it does. [01:21:41] Dollars follow people. [01:21:42] And the thing for us across all, [01:21:44] and we are Sports Facilities Advisory, [01:21:46] everything that we do is sports, recreation, [01:21:49] wellness, and entertainment, [01:21:50] and usually a combination of at least three, [01:21:52] if not all four of them at a facility. [01:21:55] Our entire motive for how we operate [01:21:58] is to not squeeze every penny out of every player [01:22:02] or person who can't afford to pay, [01:22:05] but to get more people, [01:22:08] charge them less, [01:22:10] and let the difference be a really positive factor. [01:22:12] We think that's an opportunity here. [01:22:15] Serve better, serve more people, [01:22:17] ask to charge less, [01:22:18] and financial performance will improve. [01:22:22] What we're engaged for, [01:22:23] so what we're engaged for [01:22:24] is to look at all of this stuff, clearly. [01:22:26] The initial conversations were, [01:22:28] we need a financial forecast around physical improvements, [01:22:31] and we think there are some physical improvements [01:22:33] that can support those goals. [01:22:35] But clearly, as we've talked about, [01:22:38] we think that there are operational improvements [01:22:39] that have to be addressed either first or simultaneous [01:22:43] to approving any of those physical improvements. [01:22:46] So we've outlined in both areas [01:22:48] operational and physical facility improvements [01:22:52] that we think are sort of the primary areas of focus. [01:22:55] And as I said, number one on there, [01:22:57] these aren't listed in order on purpose, [01:22:59] but there is no way anything else is going in number one, [01:23:01] operating software. [01:23:02] This is a process, not a people issue. [01:23:05] It's a data entry and data collection and reporting issue. [01:23:09] And so you need something that is membership capable [01:23:12] on a monthly basis that has an easy backend [01:23:15] for how information is entered in and then collected [01:23:18] and what's going to be the very best way [01:23:20] to capture the right data. [01:23:21] You need a clean user interface [01:23:23] so that your people who are members can access it [01:23:26] and register for things, [01:23:28] can change their credit card number, et cetera. [01:23:30] And you need timekeeping integration [01:23:32] so that the staff aren't filling out paper time cards [01:23:35] and it's taking a week out of someone's time [01:23:37] that may have otherwise had more time [01:23:41] to look at reports and whatnot. [01:23:43] So those are the areas that we would look for [01:23:45] in your new operating software. [01:23:46] And again, we've got some recommendations. [01:23:48] We think the fee structure as a result [01:23:50] of being able to charge monthly should change, [01:23:52] needs to change, and hopefully will change. [01:23:56] Reporting should be an area of focus. [01:24:00] Creating a unique website right now, [01:24:02] you've got some of the information available, [01:24:05] but for example, and probably because of the price points, [01:24:08] if you go onto the website and you check, [01:24:10] but you click on membership fees, [01:24:12] you get the annual membership fees. [01:24:14] You don't get shown the monthly options. [01:24:17] And so you have to go to the facility [01:24:18] or call or whatever else it may be to get those. [01:24:21] So a unique website that's more dedicated to this facility [01:24:25] and what this facility can be offering, [01:24:27] certainly one of our recommendations. [01:24:29] Look for in-house programs. [01:24:31] So I'll give a great deal of credit [01:24:34] to the aquatics program, [01:24:35] not only the director and the head lifeguards, [01:24:38] but the way that they are looking right now [01:24:41] to offer more things, expand programs. [01:24:44] They're talking about, [01:24:46] what if we took a run at master swimming, [01:24:47] which hasn't worked in the past? [01:24:49] What if we were able to do that [01:24:51] and how could we get around some of the challenges before? [01:24:55] So, but scale that across. [01:24:57] You've had some attempts to run in-house basketball, [01:24:59] but budget's tight. [01:25:00] You don't have the staff there to dedicate to it. [01:25:02] And so when you start thinking about increasing programs [01:25:05] and doing all of these things, [01:25:06] one of our other recommendations [01:25:08] is that you tie the number of hours [01:25:10] and the pay that people receive as your employees [01:25:13] to incentivize them to grow the programs. [01:25:15] So operationally, we have systems in place. [01:25:17] You'll see them in the full financial forecast [01:25:19] when it takes place. [01:25:21] From a physical perspective- [01:25:22] Go back one more. [01:25:23] Yes, please. [01:25:27] I didn't, I was still stuck on the in-house programs, [01:25:30] but you were, you'd moved on. [01:25:32] Oh yeah, I apologize. [01:25:33] Okay. [01:25:35] Then from a physical perspective, [01:25:38] these are the areas that we think [01:25:39] could be primary areas of focus. [01:25:41] You have, I'm guessing it's about 18, [01:25:44] I don't know that I'm off the top of my head, [01:25:45] about 1,800 square feet of fitness space. [01:25:47] That is exactly your point. [01:25:49] It's half of or a third of even the smaller one, [01:25:53] that are offered in other areas. [01:25:55] So more space, more equipment. [01:25:57] Flex space. [01:25:59] That includes spaces for group exercise. [01:26:02] And right now your group exercise program [01:26:04] is mostly contracted out and those people sign on [01:26:07] and then whether they get enough members [01:26:09] or enough exposure or not dictates [01:26:11] how well you use that room. [01:26:13] But we think if you start looking at in-house programs, [01:26:15] that'll be important. [01:26:16] And youth space. [01:26:17] Youth programming space, flexible space [01:26:19] that particularly during the summer, [01:26:20] you can have more kids, some active recreation type things. [01:26:24] We're not a big fan of video games or arcades [01:26:28] for those general types of purposes, [01:26:29] but we are a big fan of having a place [01:26:32] where people can be a little bit lower key, [01:26:34] not running around a basketball court, [01:26:35] but in a confined space, cooling down [01:26:38] and doing some other activities. [01:26:40] Child watch area. [01:26:41] What are those other activities? [01:26:42] So we run any number of things. [01:26:45] Our summer camps will go through. [01:26:48] We, our summer camp sells out. [01:26:51] But what do we do from September to June? [01:26:55] So I'll speak from personal experience, right? [01:26:58] An afterschool program that may or may not be possible here, [01:27:01] but at least a place where you could have [01:27:03] a safe and quiet place for kids to do their homework [01:27:06] or to get some tutoring help from an academic standpoint. [01:27:11] Also having places for, if you have a child watch [01:27:15] and it's a flexible child watch area, the next bullet, [01:27:18] you're only gonna run that up to age seven or eight. [01:27:20] But there are people who will want to come to that facility [01:27:23] and work out with their kids age eight to 12 or so [01:27:27] that they don't want just running around [01:27:29] anywhere they want to go, [01:27:30] especially a facility with a pool and with locker rooms. [01:27:32] So those kids having an active recreation space [01:27:35] that has games, it's got controlled activities, [01:27:38] it's got non-running sports, but you can play dodgeball [01:27:42] or any number of relatively active recreation games, [01:27:45] but make that place added, right? [01:27:47] I mean, kids are gonna get active and rowdy in there. [01:27:50] Don't have a lot of places to bump. [01:27:53] There are teenage population? [01:27:58] Is there a teenage population? [01:28:00] If there is, that is by far your most difficult [01:28:03] to mobilize and to get into the facility. [01:28:07] Having a space for them needs to be programmed out. [01:28:10] It's gotta be specifically geared towards activities [01:28:12] that they're doing, because a place for them [01:28:14] to come and hang out, they will rarely choose that. [01:28:22] So controlled recreation amenities for youth, [01:28:24] that all ties into the flex space and the child watch area. [01:28:27] The last one there is opening the skate park. [01:28:30] $2,000 to $2,500 just repairing the fence [01:28:33] and everything else. [01:28:34] I don't know how practical this is. [01:28:37] We haven't gotten into the details [01:28:39] of what it would take to do this, [01:28:40] but taking the fence out, skate at your own risk. [01:28:43] This is not, it's on site, but it is not monitored [01:28:47] or the responsibility of the rec center staff [01:28:49] to go out there. [01:28:50] Why don't we just eliminate it and utilize the space [01:28:53] for something else? [01:28:55] Because I will tell you from my experience, [01:28:58] whether you have a fence or not, [01:29:00] the attitudes that come across [01:29:03] from some of those participants [01:29:05] create more problems for staff. [01:29:10] Trespassing, because people that come back [01:29:12] have been trespassed and they're trying [01:29:15] to call the police department. [01:29:16] So I'm not painting them all with one brush, [01:29:21] but I am saying that in the times that I've been there, [01:29:25] I've heard more interesting language [01:29:29] when people ask them to either stop or to do whatever. [01:29:34] And to be honest with you, [01:29:36] when our staff is working as hard as they are, [01:29:40] them being abused in that manner is not appreciated. [01:29:44] But once again, it is a little bit of a comment on society [01:29:50] and lack of oversight. [01:29:53] So, and since you also had some things in the report [01:29:57] about parking and other things that I. [01:30:00] I'm sure the pickleball people burned your ears about, [01:30:04] they'd love to have an outdoor pickleball area [01:30:06] because the tennis people are treated better [01:30:08] because they have courts. [01:30:09] Because I've heard it, walking in and out, [01:30:12] going to the workout facility. [01:30:15] Absolutely. [01:30:16] There are a number of options. [01:30:18] Outdoor basketball. [01:30:20] It's already there. [01:30:30] What are you talking about? [01:30:42] What are you? [01:30:42] Who did I? [01:31:30] I'm kind of torn on that one. [01:31:39] I don't have anything against skateboarders whatsoever. [01:31:41] I don't think that the behavior we see on our skateboard park [01:31:44] is due to the fact that there's a fence there, [01:31:46] nor is it due to the fact that the facility may be outdated, [01:31:49] because people have been skateboarding [01:31:51] in empty swimming pools for decades, and decades, [01:31:53] and decades, and doing pretty well with it. [01:31:56] We've had parents come speak to us at council during Vox Pop, [01:32:00] where they took, I don't know if y'all remember, [01:32:02] it was a couple years ago, at least one lady that [01:32:04] comes to mind, took her child to the skate park [01:32:07] and was absolutely appalled by the language [01:32:10] and behavior of the teenagers that are hanging out there. [01:32:12] So that's a tough one. [01:32:14] I mean, do we have the funds to hire a security guard? [01:32:18] Do we shut the skate park down? [01:32:19] I don't know the answer, but I'm just going to interject and say, [01:32:22] I don't think that the behavior we're seeing from the skate park [01:32:24] is due to the facility itself, as far as being outdated. [01:32:34] I'm talking to the folks from Zephyrhills and from Largo, [01:32:37] because they're phenomenal, but it's a whole different thing, [01:32:41] because the skateboard park that we have [01:32:44] is not what skateboarders use, I guess, if that's the language. [01:32:47] I'm not a skateboarder, but what I'm [01:32:49] hearing from folks that had contacted me about that [01:32:52] is that that's something that we would need to look at. [01:32:56] Now, those kids that are coming or young adults that [01:32:59] are coming, you can't go to a McDonald's [01:33:02] without hearing language that's absolutely appalling. [01:33:04] It makes my ears bleed. [01:33:05] So I'm not going to suggest that it's our facility that's [01:33:09] creating that, but I think that we're not [01:33:15] caring for that facility. [01:33:16] And so it's not people like this young man, as I said, [01:33:20] that wants to come with his kids. [01:33:21] They're not going to go there, because this [01:33:23] is who is gravitating. [01:33:24] It almost reminds me of the prostitution issue. [01:33:26] We're not doing anything about it in terms of what's there. [01:33:30] And if you close it, do they turn it [01:33:32] downtown into a skate park? [01:33:33] Well, what I was going to say is we've [01:33:36] got a group that does the bicycle BMX stuff, [01:33:40] and it might be that that area ought to be, [01:33:43] if we're going to renovate it, put some stuff up [01:33:46] that would be appropriate for the bikes, too, [01:33:47] so they're not trying to bounce off the park benches downtown. [01:33:53] Yeah, I mean, it's just the top, and it comes back [01:33:55] to values and supervision of the kids. [01:33:57] Well, that's why I kind of ask, because you're [01:33:58] looking all across the country at teenagers, [01:34:00] and I was asking, what do we do with teenagers? [01:34:03] And you said that's the toughest. [01:34:05] It is the toughest, and community to community. [01:34:08] The fact is, here's a no-brainer statement of the night. [01:34:13] Those kids still exist, right? [01:34:14] The kids who are currently abusing the skate park [01:34:17] are still going to be members of your community, [01:34:19] whether you've got a skate park or not. [01:34:21] What are their other outlets? [01:34:22] And so we look for, as many ways as possible, [01:34:25] to provide access to healthy and active activities [01:34:28] across everything that we do, and program them, right? [01:34:32] That's what I said, was that having teens in your facility [01:34:35] revolves around structure, and discipline, and organization. [01:34:39] They don't want. [01:34:40] They don't want. [01:34:41] So I've got two stepkids. [01:34:43] I've got a 15-year-old daughter and a 13-year-old son. [01:34:45] I can guarantee you that they don't want any structure [01:34:48] in my house, no less at a recreation center. [01:34:54] But that's what it takes. [01:34:55] Now I'm on the street. [01:34:56] Now he's homeless. [01:34:57] He's holding his kids in his own mind. [01:34:59] No, but those kids, to a certain extent, [01:35:03] they are still part of the community. [01:35:05] They need an outlet. [01:35:06] They need something healthy. [01:35:07] They need something motivational. [01:35:08] And what the answer is for the skate park [01:35:11] versus anything else, there are any number of ways [01:35:14] to skin that cat. [01:35:16] We think that the skate park is a nice amenity to have. [01:35:19] It's important in some communities, in many communities. [01:35:22] And also, up until this year, we just saw the first uptick [01:35:27] in kids participating in traditional youth sports. [01:35:29] But for the last five years, five million kids [01:35:32] dropped out of traditional team sports. [01:35:34] Some of those kids not active at all anymore, [01:35:36] which is a huge epidemic. [01:35:38] Some of those kids, though, choosing non-team sports [01:35:42] like skateboarding, and mountain biking, [01:35:45] and other sports that are increasing [01:35:47] individual action sports, and adventure sports, [01:35:50] and individual achievement sports. [01:35:52] So that's healthy as well. [01:35:53] We think that skating can be a healthy activity. [01:35:57] We think that the burden that that skate park currently [01:35:59] has on this facility doesn't need to be there. [01:36:02] And an investment into the skate park, [01:36:03] we haven't gotten into the full what could it be. [01:36:08] But that might not be your ideal location, [01:36:10] or given the footprint and everything else at that [01:36:12] facility, but it may not be a bad activity. [01:36:15] Let's take it one step further, though. [01:36:17] If we don't cater to these teenagers, at some point, [01:36:23] most of them are going to grow up, [01:36:25] and they're going to wind up in that demographic, [01:36:27] or that 25 to 45 group that we would dearly [01:36:30] love to be moving into New Port Richey, opening businesses, [01:36:34] and settling down. [01:36:36] Employed. [01:36:37] And employed, and settling down. [01:36:40] If we make New Port Richey unattractive to them, [01:36:44] they're going to go off somewhere. [01:36:46] And when somebody says, how about moving back [01:36:48] to New Port Richey? [01:36:49] And they're going to say, ew, there's nothing to do there, [01:36:51] and they'll never come back. [01:36:52] And then we wind up with that hole in the group [01:36:55] that we really would like to attract. [01:36:57] And Mr. Republic's not here, but is it really that easy [01:36:59] to just take the fence down, put a sign up, [01:37:01] skate at your own risk, and all liabilities [01:37:03] off the city of New Port Richey? [01:37:05] Well, Jeff, can I just add? [01:37:06] It seems a bit too easy. [01:37:07] Well, not because of the quality of the product. [01:37:10] That's where we run into, it's not a quality problem. [01:37:12] And if we could. [01:37:13] You can skate at your own risk if it's a quality product, [01:37:16] but if it's not. [01:37:17] And that's some of our problems, is that correct? [01:37:20] Product isn't a quality product at this point. [01:37:24] The skate park we have now is outdated. [01:37:29] It happened with our kids. [01:37:32] This is something we've been doing. [01:37:38] There's all different types of content now with skate park. [01:37:42] We do make them so they, I've seen them that they're more [01:37:47] like a park space, a trail, but it goes in a circle. [01:37:51] And it accommodates not just skateboards, skates, [01:37:55] MX bikes, and then they do have areas for young and old. [01:37:59] That's what the, that's what everybody, [01:38:04] the ones that we have, they're so old and rusty. [01:38:12] And I think, you know, we live in Florida. [01:38:16] That type of outdoor activity is, you know, [01:38:19] we really need to develop something. [01:38:21] We're talking about, you know, we have a phenomenal park [01:38:24] that we just created. [01:38:26] We're talking about this, this segue from the park [01:38:28] to the, from the hospital to the recreation center. [01:38:32] I think we just need to think outside the box [01:38:35] about that because I think that demographic, [01:38:37] it is an absolutely hot issue with people that age. [01:38:41] And I just, you know, I think that we're doing [01:38:43] so many cutting edge things with our outdoor recreation [01:38:48] and for our community, that those are the kinds of things [01:38:52] that are going to definitely attract [01:38:57] or make our community attractive. [01:38:59] You know, you're talking about the, the beer tap, [01:39:02] you know, again, that age demographic, you know, that. [01:39:06] You brought up a great point too with Sims Park. [01:39:08] I mean, everyone's like, how do we get the vagrants [01:39:10] and the drug dealers out of Saracen Tower? [01:39:12] You know, you build something nice that attracts, [01:39:14] so your point is very valid, attracts the demographic [01:39:17] and the families that we want in Sims Park. [01:39:18] All of a sudden, those see the element of our society [01:39:22] not quite as comfortable there. [01:39:23] So it could go along with the skate park [01:39:25] if you built something that would attract younger fathers [01:39:28] and mothers to bring their kids [01:39:29] and teach them how to skateboard and do that. [01:39:31] All of a sudden you have families hanging out [01:39:32] and these teenage kids who are up to no good, [01:39:35] not that they're not invited, [01:39:36] but they're gonna have to change their behavior [01:39:38] and I don't think they'd feel as comfortable [01:39:39] doing what they are with no supervision [01:39:41] and no other element around them. [01:39:43] Right, and I think that was kind of my point [01:39:45] is that I think we've abandoned it [01:39:47] and so it's like a, it's like an old schoolyard. [01:39:50] Oh yeah. [01:39:50] Yeah, and so who is going to go there? [01:39:53] As you know, I get out to California a lot [01:39:55] and I got to tell you, I'm just blown away by, [01:39:57] and again, the climate is perfect [01:39:59] for that type of entertainment [01:40:01] and sometimes you look at the kids and you think, [01:40:03] but they're just, that's just the kind of the look [01:40:07] that they get. [01:40:08] I'm not suggesting that those kids that are creating it, [01:40:09] but I think that really the issue is [01:40:11] because we've pretty much abandoned it, [01:40:13] who is going there? [01:40:15] So anyway, I think I'd like to us look outside the box [01:40:18] and I have requested the folks from Zephyr Hills [01:40:20] and Largo to see issues in this man's [01:40:22] because what they did there, [01:40:24] the footprint was not very costly [01:40:27] and they seem to have, I think it was a program on, [01:40:29] it was a story on TV just the other day, [01:40:31] I think it's also Tampa that just owns one. [01:40:34] Yeah, and so what I'm saying is that's kind of cutting edge [01:40:40] and we already had this for how many years? [01:40:42] So I think that I would just like to see us [01:40:44] not necessarily abandon it, [01:40:46] but just think outside the box and see what we can do. [01:40:49] They're all open facilities, no fencing, all the new ones. [01:40:57] And that one just. [01:41:00] I think, I'm not sure. [01:41:05] Some kind of. [01:41:07] Do either way. [01:41:09] That. [01:41:10] What you build. [01:41:12] And if they've built some, [01:41:13] then the ones that are successful, half them all. [01:41:17] I think we have a lot more issues besides the skate park. [01:41:20] Well, I just didn't want us to be dismissive [01:41:22] with and say get rid of it. [01:41:23] Oh, good discussion, definitely. [01:41:25] I just think, yeah, I absolutely think that. [01:41:28] We've got functional obsolescence in a number of areas. [01:41:31] I'd rather deal with those if you're trying to drive. [01:41:34] And if you want to put that on the side, [01:41:37] and that's fine, but it's not the horse [01:41:42] that's pulling the wagon, as far as I'm concerned. [01:41:46] Okay, what else you got? [01:41:48] We'd like to take a break [01:41:49] and then come back with some comments. [01:41:50] It's an open discussion. [01:41:51] That was it. [01:41:53] Can we take a break? [01:41:55] Why don't we take five and then come back? [01:42:00] If you're interested, just. [01:42:06] They call it kick pump, yeah, sorry. [01:42:10] It's kick pump pedal, I think is what they call it. [01:42:14] I've just brought up a picture. [01:42:16] We've got a vendor that we've worked with [01:42:17] on some other things, and this is one that was in New York. [01:42:20] So just, if you're interested, [01:42:22] the biggest one of these is 20,000 square feet footprint, [01:42:24] so it's not very big, but that's what it is, [01:42:26] and that's for skaters, bikers. [01:45:00] Yn ystod y 20.000 o farchnidau, mae'r rhan fwyaf o'r gynhyrchau yn dod â'r llawer o'r gynhyrchau ar y ffordd y mae'n dod â'r rhan fwyaf o'r farchnidau. [01:45:12] Felly, mae'n rhaid i ni ddweud a yw'r farchnidau yma'n rhaid i ni ddweud yw'r farchnidau yma'n rhaid i ni ddweud yw'r farchnidau yma'n rhaid i ni ddweud, [01:46:22] Mae'n rhaid i ni ddweud yw'r farchnidau yma'n rhaid i ni ddweud, [01:46:32] Mae'n rhaid i ni ddweud yw'r farchnidau yma'n rhaid i ni ddweud, [01:46:42] Mae'n ffodus i ni ddweud pethau'n iawn, [01:46:56] Mae'n ffodus i ni ddweud pethau'n iawn, [01:47:06] Mae'n ffodus i ni ddweud, [01:47:14] Mae'n ffodus i ni ddweud, [01:47:22] Mae'n ffodus i ni ddweud, [01:47:30] Mae'n ffodus i ni ddweud, [01:47:38] Mae'n ffodus i ni ddweud, [01:47:46] Mae'n ffodus i ni ddweud, [01:47:54] Mae'n ffodus i ni ddweud, [01:48:02] Mae'n ffodus i ni ddweud, [01:48:10] Mae'n ffodus i ni ddweud, [01:48:18] Mae'n ffodus i ni ddweud, [01:48:26] Mae'n ffodus i ni ddweud, [01:48:34] Mae'n ffodus i ni ddweud, [01:48:42] Mae'n ffodus i ni ddweud, [01:48:50] Mae'n ffodus i ni ddweud, [01:48:58] Mae'n ffodus i ni ddweud, [01:49:06] Mae'n ffodus i ni ddweud, [01:49:14] Mae'n ffodus i ni ddweud, [01:49:22] Mae'n ffodus i ni ddweud, [01:49:30] Mae'n ffodus i ni ddweud, [01:49:38] Mae'n ffodus i ni ddweud, [01:49:46] Mae'n ffodus i ni ddweud, [01:49:54] Mae'n ffodus i ni ddweud, [01:50:02] Mae'n ffodus i ni ddweud, [01:50:10] Mae'n ffodus i ni ddweud, [01:50:18] Mae'n ffodus i ni ddweud, [01:50:26] Mae'n ffodus i ni ddweud, [01:50:34] Mae'n ffodus i ni ddweud, [01:50:42] Mae'n ffodus i ni ddweud, [01:50:50] Mae'n ffodus i ni ddweud, [01:50:58] Mae'n ffodus i ni ddweud, [01:51:06] Mae'n ffodus i ni ddweud, [01:51:14] Mae'n ffodus i ni ddweud, [01:51:22] Mae'n ffodus i ni ddweud, [01:51:30] Mae'n ffodus i ni ddweud, [01:51:38] Mae'n ffodus i ni ddweud, [01:51:46] Mae'n ffodus i ni ddweud, [01:51:54] Mae'n ffodus i ni dweud, [01:52:02] Mae'n ffodus i ni dweud, [01:52:10] Mae'n ffodus i ni dweud, [01:52:18] Mae'n ffodus i ni dweud, [01:52:26] Mae'n ffodus i ni dweud, [01:52:34] Mae'n ffodus i ni dweud, [01:52:42] Mae'n ffodus i ni dweud, [01:52:50] Mae'n ffodus i ni dweud, [01:52:58] Mae'n ffodus i ni dweud, [01:53:06] Mae yna ychydig o ddiddordeb [01:53:16] Mae yna ychydig o ddiddordeb [01:53:26] Mae yna ychydig o diddordeb [01:53:36] Mae yna ychydig o diddordeb [01:53:46] Mae yna ychydig o diddordeb [01:53:56] Mae yna ychydig o diddordeb [01:54:06] Mae yna ychydig o diddordeb [01:54:16] Mae yna ychydig o diddordeb [01:54:26] Mae yna ychydig o diddordeb [01:54:36] Mae yna ychydig o diddordeb [01:54:46] Mae yna ychydig o diddordeb [01:54:56] Mae yna ychydig o diddordeb [01:55:06] Mae yna ychydig o diddordeb [01:55:16] Mae yna ychydig o diddordeb [01:55:26] Mae yna ychydig o diddordeb [01:55:36] Mae yna ychydig o diddordeb [01:55:46] Mae yna ychydig o diddordeb [01:55:56] Mae yna ychydig o diddordeb [01:56:06] Mae yna ychydig o diddordeb [01:56:16] Mae yna ychydig o diddordeb [01:56:26] Mae yna ychydig o diddordeb [01:56:36] Mae yna ychydig o diddordeb [01:56:46] Mae yna ychydig o diddordeb [01:56:56] Mae yna ychydig o diddordeb [01:57:06] Mae yna ychydig o diddordeb [01:57:16] Mae yna ychydig o diddordeb [01:57:26] Mae yna ychydig o diddordeb [01:57:36] Mae yna ychydig o diddordeb [01:57:46] Mae yna ychydig o diddordeb [01:57:56] Mae yna ychydig o diddordeb [01:58:06] Mae yna ychydig o diddordeb [01:58:16] Mae yna ychydig o diddordeb [01:58:26] Mae yna ychydig o diddordeb [01:58:36] Mae yna ychydig o diddordeb [01:58:46] Mae yna ychydig o diddordeb [01:58:56] Mae yna ychydig o diddordeb [01:59:06] Mae yna ychydig o diddordeb [01:59:16] Mae yna ychydig o diddordeb [01:59:26] Mae yna ychydig o diddordeb [01:59:36] Mae yna ychydig o diddordeb [01:59:46] Mae yna ychydig o diddordeb [01:59:56] Mae yna ychydig o diddordeb [02:00:00] experts, you know, I recommend investing such and such amount of dollars into this, and [02:00:05] we recommend doing this, this, and this, which I know is coming, but I don't know how much [02:00:08] more information I can give you. I mean, obviously, child care is important to me. Management [02:00:13] is – the management program is needed a long time ago. I'm – I guess I'm personally [02:00:20] just looking for the final package from you, and then let us decide as to what – I don't [02:00:27] know what information – what additional information from me I can give you. [02:00:30] Yeah. So let me go to a high level, because we're happy to provide as much information [02:00:38] as is useful. We also have to be conscious of, you know, how much information we can [02:00:44] actually provide. So we've got – we've got other scopes of work that include full [02:00:51] implementation timelines and detailed breakdown of all the strategies. We'll develop the [02:00:55] marketing processes for you, et cetera. We can't do that under the scope of work, obviously. [02:01:01] What we can do is we can – we can add real texture numbers. Here are the sets of operating [02:01:07] softwares that we recommend. Here is the average price for a monthly basis and the average [02:01:12] implementation cost. This is what you need to be prepared to think about in terms of [02:01:16] operating software, and we can – we can add that content and give that to you. It [02:01:21] sounds like that's what – what you're going to want. What we didn't want to do [02:01:25] is give you a pro forma financial forecast that has on the operating expenses, communications [02:01:30] and facility software, $850 a month times 12 months. Here's what it is in year one, [02:01:35] two, and three. That doesn't do you very much good without this level of data. So it [02:01:40] sounds like let's go back to this. Let's add some content and some context to the recommendations, [02:01:46] get that over to you, and then whether it's a phone call, whether it's an in-person [02:01:51] interaction, or whether it's both. So the third, candidly, won't work for us. We're [02:01:55] at a trade show, but the 17th would. If Councilman Phillips can't be there, then we can follow [02:02:04] up. [02:02:05] Remote capabilities here. We – you know, so it doesn't – just so I won't physically [02:02:09] be in the – I won't be in town. [02:02:15] Prior to y'all coming on board and we were contemplating spending a significant amount [02:02:20] of money for a larger workout facility, for an entrance right up front, pool improvements. [02:02:26] That's kind of what I'm looking for as well is do you recommend us spending that [02:02:29] money or do we fix what's broken right now and then add later? I guess that's the direction [02:02:36] I'm going to be looking for. [02:02:37] That's great. So there are two sides of it, right? And as we mentioned, you have to [02:02:42] address operations. You can do that before or simultaneous. I think the big question [02:02:46] is where's the money coming from? What are the deadlines of that money? As we understand, [02:02:49] a big portion of that money was going to be applied for money for PASCO. Obviously, that'll [02:02:55] be a – [02:02:56] There's no deadline on that. It's just in the bank. We just have to – we'd have [02:02:59] to decide which element – and to be perfectly honest with you, we've been running this [02:03:04] thing out for five months now. It's gotten to be – we've hit it, we've hit it, [02:03:10] we've hit it. We hired you. You've identified in your report already five out of probably [02:03:17] eight things that were on the list that we had already dropped. We had drawn up conceptual [02:03:22] drawings and had pricing for. The question was how much appetite did we have to spend [02:03:28] all of that? And then the question was what's the ROI? Everybody wants to return on my investment. [02:03:34] At the end of the day, if it continues at the same place, it's going to continue to [02:03:37] back up. So, at the end of the day, some of the things you've identified is just [02:03:43] how in-depth and how extravagant you make all of those to make it functional and to [02:03:49] improve on something that was designed under some criteria. Now, we're having to deal [02:03:55] with the renovation or retrofitting of it. [02:04:01] The penny for PASCO money, it just depends on – it's available. It's in the budget. [02:04:06] It flows from one year to the other if it doesn't get spent. It doesn't go away. [02:04:10] It's not like Sims Park where we had a grant for a playground that we needed to implement [02:04:15] to make deadlines. So, mine is that I don't mind talking about it. You've pointed out [02:04:23] the areas. You know, give me the dollars, put the programs in place to improve it on [02:04:29] the operational side, but we need to really improve the level of service and the level [02:04:36] of areas inside of the footprint that really will take that revenue up and get us to 70, [02:04:47] 75. [02:04:48] To be clear, I do want to say this. Coming from 35 percent, knowing that you've got [02:04:55] four pools and systems for those four pools, 70 would be a long-term stretch goal. [02:05:03] If I don't set my benchmark high, we didn't set the benchmark high on what collectively [02:05:09] happened at Sims Park. We never got there. We all kicked it around. We all added three [02:05:15] or four other elements to it, and it finally got to where it is today, plus the second [02:05:20] phase. So, if we don't set a high benchmark, then we'll be satisfied with not meeting that [02:05:26] benchmark. [02:05:27] Yeah, absolutely, and we're going to give you what we think is the realistic and achievable [02:05:30] numbers. Just in a three-year financial forecast, we're probably not going to end at 70 percent. [02:05:36] We probably won't be that high. That's not to say that it couldn't get, you know, you [02:05:39] couldn't be generating more like $600,000, $700,000, $800,000 here. [02:05:45] Let's look at some of the proposals we've got on the rec center expansion, including [02:05:50] expanding out the area where the exercise equipment goes. Give us some feedback. Does [02:05:59] this make sense? If it makes sense that we need to have the additional space, and you've [02:06:05] said our area is too small now, if that additional space makes sense based on what you're seeing, [02:06:13] then I'd like that answer. [02:06:15] Yeah, so that's good. [02:06:17] I want to just insert something. We attended a library program last week, and I was actually [02:06:23] amazed at some of the stuff. When I was watching what they were doing, I was thinking, how [02:06:27] come we don't do that at the rec center? Are there cities that have what we have that also [02:06:34] incorporate? Do they have either on the same property or what were incorporated into it [02:06:40] their library? You know, you said before that, you know, some of you want a quiet place, [02:06:44] and I'm thinking, well, we have that. We have a phenomenal library. Are there any that combine [02:06:50] those two? [02:06:52] Not formally, and they don't, that we've worked with. I'm not saying that it doesn't exist, [02:06:55] but none of our clients have tied, so they've got proximity and adjacency, but they haven't [02:07:00] tied operations in together or mixed programming. [02:07:03] Proximity and adjacency, is that common? [02:07:06] It's not common. It's all about master planning, so we've got a facility in Tennessee that's [02:07:12] got their high school. It's got a boys and girls club. It's got a rec center, and it's [02:07:16] got indoor and outdoor sports assets, and we manage those sports assets, but we are [02:07:20] not even tied into the recreation center, even though we've got an 86,000 square foot [02:07:25] indoor building with two basketball courts, and they've got an indoor pool and a bowling [02:07:29] alley and two basketball courts. Sorry, we've got six basketball courts there, but proximity [02:07:36] and adjacency, yes, certainly, but no tied operations or programming, at least that we've [02:07:40] worked with. [02:07:41] I'm just going to throw this out here. I don't want to spend $1.7 million to make it look [02:07:46] pretty and pick up 3,000 square feet, somewhere in that 4,500 square feet, whatever the number [02:07:54] was. I'd just as soon build a box on the backside of it and open it up and put the square footage [02:08:02] in the facility and not in the prettiness, redoing the front and doing the concept that [02:08:09] we got from Kimberly Horne. That's my opinion. I want the facility. I want stuff that can [02:08:15] work, stuff we can use, so rather than spend $100 a square foot and get a box and open [02:08:24] up the facility and put activities in there, make it look pretty. [02:08:29] You've seen the proposal? [02:08:31] We have. We haven't analyzed it. [02:08:35] I'm on board with the comments from Bill and Mary Marla and Rob. We have estimates of what [02:08:43] it would cost. Tell us what you recommend we do, and then along with your other recommendations, [02:08:49] wrap it up, put a bow on it, and we'll figure out if we want to do it. [02:08:52] Absolutely. We'll definitely do that. We'll do that next week, and we'll come back. Coming [02:08:58] out of this, as soon as we connect to Wi-Fi, we'll save this as a PDF, get it over. Ms. [02:09:04] Manz will get it to you. And then next week, we will do two things. Number one, we'll add [02:09:10] some additional costs to some of the operational pieces that we're talking about there, and [02:09:16] then we'll get you also a review of that information. [02:09:23] Anything else? [02:09:24] The lightning, right? [02:09:25] Yeah. [02:09:26] About that time, right? [02:09:28] Thank you, everyone. [02:09:29] Thank you, everyone.

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3. 3Adjournment