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   Presentation: Sports Facilities Advisory Group, LLC

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   Sports Facilities Advisory/Management Group (SFA/SFM) representatives Evan Elop and Thomas Parker presented final recommendations from their market study, operations audit, and pro forma for the city's Recreation and Aquatic Center. Recommendations covered seven operational areas including new operating software, a dedicated website, marketing, staffing, and physical facility improvements. The presentation was for discussion only with no formal action taken.

   🏢RecTrack🏢Sports Facilities Advisory, LLC🏢Tyler Technologies👤Evan Elop👤Thomas Parker#Recreation and Aquatic Center#dedicated website recommendation#financial forecast / pro forma#fitness center relocation/expansion#operating software bid recommendation (on next night's agenda)#operations optimization recommendations

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   [00:00:20] Sure, I'll go ahead and get started. [00:00:22] For those of you that don't recall, [00:00:25] I'd like to reintroduce Mr. Evan Elop and Thomas Parker [00:00:30] from the Sports Facility Advisory Sports Facilities [00:00:34] Management Group. [00:00:35] They were hired in January of 2016 [00:00:39] to conduct a market study of facilities and operations audit [00:00:44] and to perform a pro forma. [00:00:48] They were before you in May of 2016 [00:00:51] with some preliminary findings. [00:00:55] They're back before you this evening [00:00:56] with their final recommendations as it [00:00:59] relates to operational matters and physical and facility [00:01:04] improvements. [00:01:06] With that, I'd like to let them start, Mr. Mayor. [00:01:08] Very good. [00:01:16] While that's loading up, just once again, [00:01:18] Evan Elop from the Executive Vice President [00:01:20] for Partners in SFA and SFM, Thomas Parker, [00:01:24] business analyst and project coordinator with our team. [00:01:27] So obviously in, I think it was late April [00:01:30] or it may have been early May, we were in front of you [00:01:33] and gave a preliminary update. [00:01:35] We're going to skip over most of the information from that [00:01:38] and just give you a really quick project overview, [00:01:41] but spend most of our time on the three primary areas [00:01:45] that we were engaged. [00:01:46] Number one, an operations optimization set of strategies. [00:01:52] Nothing in depth that's really leading [00:01:54] towards the financial forecast, but what [00:01:56] are the operational pieces that need [00:01:57] to be shored up or changed in order to make an impact? [00:02:02] What are the physical facility improvements [00:02:04] based on the work that's already been done that are recommended, [00:02:07] should be changed around, or should be reconsidered [00:02:11] for the impact that they can have? [00:02:13] And ultimately, what are the impacts [00:02:15] of operational performance and physical facility performance [00:02:19] recommendations, things that will impact [00:02:21] the current financial standing? [00:02:23] So we will cover numbers two, three, and four [00:02:27] in the most depth here and leave some time [00:02:29] at the end for any questions that you've got. [00:02:32] Just as a quick reminder, what we're engaged to do [00:02:35] is really create a financial forecast based on an audit, [00:02:39] based on meetings with the staff, [00:02:42] with users and non-users, based on our market data [00:02:45] and our experience in planning, funding, opening, [00:02:47] and managing facilities. [00:02:49] And within that scope of work, we [00:02:50] had an existing data review, a market study, a site tour, [00:02:54] a market tour, a key meetings and strategy sessions [00:03:00] set of meetings, I should say, the audit [00:03:03] from both a facility and an operations perspective, [00:03:05] and a detailed financial forecast. [00:03:07] We also, through the process, wanted [00:03:09] to make sure that we had the chance to meet with you. [00:03:10] We wanted to make sure that we were being communicative [00:03:13] and that everything that we needed to cover [00:03:15] and needed to complete in order to get to this stage [00:03:18] and have full confidence that what we were delivering [00:03:21] was the most accurate, most reliable, and most [00:03:23] credible financial forecast. [00:03:25] We added in three steps. [00:03:26] So we had the update meeting. [00:03:28] We delivered a mid-scope report following that update meeting. [00:03:32] And we added an executive summary report [00:03:34] to outline a lot of the information that's [00:03:35] going to be covered tonight. [00:03:37] Tonight, the rest of the presentation [00:03:38] really is primarily an overview of the materials [00:03:41] that were in your packet. [00:03:42] I'll cover them in some depth and obviously answer [00:03:44] any questions that you've got. [00:03:47] And just one more quick reminder, [00:03:48] we had three goals for the study. [00:03:50] The first was to determine how the Recreation and Aquatic [00:03:53] Center can better serve New Port Richey, your community. [00:03:57] The second was to determine what recommendations needed [00:04:00] to be made in order to improve the performance of the facility [00:04:03] from a number of members and from a financial performance [00:04:06] perspective. [00:04:07] And then the third was really to give you [00:04:10] an operational forecast, a full financial forecast that [00:04:14] shows what can be expected if those recommendations are [00:04:17] implemented in terms of the next three years of operations [00:04:20] from the time that they're implemented. [00:04:23] Any questions on the goals for the study [00:04:25] or the engagement itself? [00:04:30] So we're going to break this down into three sections, [00:04:33] as I mentioned, in the agenda. [00:04:34] The first one is a breakdown of operations. [00:04:36] And this is where we spent the majority of our time [00:04:38] because from a physical facilities perspective, [00:04:40] you've already had quotes and some architectural plans. [00:04:44] We'll talk about our reactions to those. [00:04:46] But from an operations perspective, [00:04:48] that's where we did the majority of our work. [00:04:50] So we came up with seven recommendations [00:04:52] that I'm going to cover in an overview perspective. [00:04:55] But again, feel free to pause me for any questions [00:04:57] that you've got. [00:04:58] So walking through these seven, we're [00:04:59] going to start with investing in the new operating software. [00:05:02] This from the time that we were in front of you [00:05:06] before in April or May. [00:05:09] And what we recognize is that your current operating system [00:05:13] is really meant for scheduling facilities. [00:05:15] It doesn't give you the monthly billing option for membership. [00:05:19] It doesn't give you accurate and timely reporting. [00:05:21] It doesn't give you the ability to track [00:05:23] time of your employees, et cetera. [00:05:25] So there are several deficiencies [00:05:26] in the current operating system. [00:05:28] And ultimately, what it's led to is a hindrance on your ability [00:05:33] to serve people in this community [00:05:34] and to operate as effectively as possible. [00:05:37] So familiar with the software that we have? [00:05:42] It's RecTrack, is it not? [00:05:43] Yeah. [00:05:44] Yeah. [00:05:44] We are loosely familiar. [00:05:46] We don't use it in any of our facilities. [00:05:48] We've converted out of it in multiple facilities. [00:05:51] There are options within RecTrack [00:05:53] that we haven't used that you all aren't currently using. [00:05:57] That's kind of what I felt. [00:05:58] Additional add-ons. [00:05:59] I felt that it was, we didn't buy the package. [00:06:02] So there may be options for it. [00:06:04] And we'd recommend looking at RecTrack and the add-on [00:06:06] for RecTrack. [00:06:08] It may save some implementation. [00:06:10] But currently, what you've got for RecTrack [00:06:12] is a really basic version of RecTrack. [00:06:15] And additionally, what we would assume [00:06:17] is that when you go in and you have to sort your data [00:06:21] and reallocate where memberships are. [00:06:23] Yeah. [00:06:23] I went through. [00:06:24] You don't have to explain it. [00:06:25] I tried to work with it. [00:06:26] But that's kind of the basis is it wasn't a complete package. [00:06:29] It was just a base package. [00:06:31] So there are add-ons. [00:06:32] Those things that you were saying, [00:06:34] the program that you mentioned when you were here before, [00:06:37] that comes as a full package? [00:06:38] Or do you buy add-ons too? [00:06:40] There are a number of different pricing options, [00:06:42] depending on which service you're looking at. [00:06:44] We would recommend always looking at at least three. [00:06:47] We like some of all of them. [00:06:48] And we like none of any of them. [00:06:50] Sorry, we like some of all of them. [00:06:52] And we like all of none of them. [00:06:55] There is no perfect solution, unfortunately. [00:06:57] But the ones that you, the three that you look at, [00:07:00] are they pieced together like Rectrack? [00:07:02] Or are they a full package? [00:07:04] For your needs, all of them would be comprehensive, [00:07:09] in terms of the basic package would cover what you would need. [00:07:12] You probably could. [00:07:13] But I just, that's, I want to put where Rectrack is all about. [00:07:21] Yeah. [00:07:22] Racetrack, I think that's where I get gas. [00:07:26] So when you convert over, whether it's [00:07:28] through the addition to Rectrack or the conversion [00:07:30] to a new software system, there are several things [00:07:33] that you're going to want to make sure [00:07:34] that you've got in addition to just the software, [00:07:36] or also that the software covers. [00:07:38] So you'll need payment card industry compliant equipment, [00:07:43] so you can take the cards. [00:07:45] You can store cards in compliance, [00:07:48] so that you don't have issues of data breaches and whatnot. [00:07:51] For running them, of course, you'll [00:07:53] have to have the specific to that operating system, [00:07:56] tracking, scanning, and cards. [00:08:00] You'll want, of course, membership software. [00:08:01] That's really where you're deficient right now [00:08:03] in your base package. [00:08:04] You've got facility scheduling software. [00:08:06] But for my real, true membership package operating software, [00:08:10] it's just not there in your current operating software. [00:08:13] You'll want time tracking for your employees [00:08:15] to shore that side of your business up. [00:08:18] And really, your biggest, most controllable expense [00:08:20] being your salaries. [00:08:22] And you'll want to make sure, additionally, [00:08:23] that the outputs from all of your operations [00:08:27] tie into the financial software that the city uses, [00:08:30] so that that integration of ops exporting into finances [00:08:35] works seamlessly, and that you can code it, you can map it, [00:08:37] and it works better with some than others. [00:08:40] If I could ask a question, do any of the other departments [00:08:42] that we have, have they're a separate employee tracking [00:08:45] system, separate from the finance department, [00:08:47] or are they even resources? [00:08:50] I'm not certain about the rest of the structure. [00:08:52] I guess I'm asking whomever. [00:08:53] I'm shaking his head no. [00:08:54] Yeah. [00:08:55] Yeah. [00:08:55] Yes. [00:08:56] And when we move to Tyler, or the DHR, [00:08:58] the one that we're in, that will be [00:09:00] for all across all the departments. [00:09:03] Oh, I don't know that. [00:09:06] That's the only one I know. [00:09:07] Thank you. [00:09:08] So you'll see in the full package. [00:09:10] Since we're just asking that question, [00:09:13] you're talking about taking credit cards, [00:09:18] and being compliant, and all that. [00:09:21] Can you help us with Tyler? [00:09:22] Is there an integration between this and Tyler, [00:09:24] or is this going to be a separate unit than Tyler? [00:09:29] This would be a separate software, [00:09:31] but the exported data would merge into Tyler Technologies. [00:09:35] So trackable through the system, but it [00:09:37] would be an independent software. [00:09:39] So being the industry that I'm in, [00:09:44] then we would have two credit card processing units [00:09:48] in this city so far. [00:09:52] I don't know about other departments, [00:09:53] but you're saying this was going to be [00:09:55] separate than Tyler, and what we take in the water department. [00:09:58] It is. [00:10:00] The actual bid recommendation is on your agenda [00:10:04] for your meeting tomorrow night to purchase the software. [00:10:08] And it would mean that we can do credit card readers. [00:10:11] Right, right. [00:10:11] I'm just wondering if that's what I'm saying. [00:10:14] What I'm asking is, we're going to set up [00:10:16] a whole other unit separate than Tyler. [00:10:19] So we're going to have actually two systems in the city then? [00:10:22] We're going to have whatever you recommend and Tyler? [00:10:26] That's correct. [00:10:32] You'll notice on a couple of these slides off to the right, [00:10:35] they're too small to read. [00:10:37] They're there simply to break up the words a little bit. [00:10:40] But there's more detail to it, or at least [00:10:42] you can see it more in the recommendations package. [00:10:45] So one of the things we wanted to do [00:10:46] was create a timeline so that you [00:10:48] could look at what it will take in terms [00:10:50] of standard implementation timelines [00:10:51] to complete each one of the tasks that [00:10:53] would be necessary in order to go through the operating [00:10:56] software review selection implementation process. [00:11:00] And so we've detailed that for you within the summary report. [00:11:05] But ultimately, in order to convert to a new software [00:11:08] package, we typically take $15,000 to $30,000. [00:11:13] The big difference there is what you need [00:11:14] in terms of ongoing support. [00:11:17] There is an implementation process [00:11:19] that includes staff training and then the customization [00:11:23] of the reports that you want, the data collection [00:11:25] and conversion. [00:11:26] All of that can be done. [00:11:28] Most of the companies charge a base price [00:11:31] and it includes a certain number of hours for implementation. [00:11:34] And then above and beyond that, you [00:11:35] can get additional training, additional implementation, [00:11:38] additional tech support as well. [00:11:40] And I'm sorry, what did you say your first name was? [00:11:42] Evan. [00:11:43] Oh, you're Evan. [00:11:43] OK, Evan. [00:11:44] So the program that we have right now, is it a dinosaur? [00:11:48] Or is it just you had said that we [00:11:49] don't have the whole package? [00:11:50] So it's possible we could add elements to it [00:11:54] to create what you're suggesting? [00:11:57] You definitely can add elements to Rectrack. [00:12:01] We haven't worked with it. [00:12:02] We've always used a little bit more [00:12:04] of a sophisticated in all of our operations, [00:12:06] a little bit more of a sophisticated system, [00:12:09] operating system. [00:12:10] But Rectrack does have options well above and beyond what [00:12:14] you currently have. [00:12:15] And there could be some efficiencies there. [00:12:17] If you stay with Rectrack, add on new modules [00:12:19] is what they're called. [00:12:20] The challenge is simply going to be, [00:12:23] even with adding on new modules to your existing software, [00:12:26] you've got a whole set of information, [00:12:30] a database of information that isn't currently [00:12:32] coded or in the right place. [00:12:34] And so taking your existing data, [00:12:37] if you just convert it and plug it into the new system, [00:12:39] it's going to be what we call garbage in, garbage out. [00:12:42] If it's not set up and it's not sorted in the right way [00:12:46] to take full advantage of the operating software, [00:12:48] you're going to have the same difficulties. [00:12:50] We're going to be doing the same thing [00:12:51] if we tried to take Rectrack and put it in this new system, too. [00:12:54] We're basically starting from scratch. [00:12:56] That's right. [00:12:57] Let me ask you a question. [00:12:58] As far as we were talking about having access [00:13:01] to the physical fitness workout center, [00:13:04] let me just slide the card. [00:13:05] Is that part of the operating system [00:13:07] or is it totally different? [00:13:08] It is part of the operating system. [00:13:10] It should be noted, and I don't think I said it specifically [00:13:13] within that, the facility that you have currently [00:13:18] and any realistic updates to that facility [00:13:20] are going to be prohibitive to creating a standalone fitness [00:13:25] membership. [00:13:26] The reason for that is that regardless of what you do [00:13:29] in moving the fitness center to the new space, which [00:13:31] we do recommend to the front of the building [00:13:35] and expanding your fitness center space, [00:13:37] it's not going to be joined to the locker rooms. [00:13:40] And in order to have a standalone fitness center [00:13:42] where it would make the most sense to have the swipe card [00:13:45] directly in so that you could only have access [00:13:47] if you're a paying member of that, [00:13:49] you're going to be separated from the restrooms [00:13:51] and the locker rooms. [00:13:52] And so you have to gain access to the rest of the facility [00:13:54] to use it. [00:13:55] So we haven't modeled that there is a fitness-only version [00:13:58] or a full facility version or an aquatics-only version. [00:14:02] We've got just a facility. [00:14:04] I don't know that any of us were thinking [00:14:05] in terms of fitness only, but there [00:14:09] is some interest in people being able to get in [00:14:13] to get access to the stuff in the pre-dawn hours, I guess. [00:14:18] Off-peak hours? [00:14:20] Sure. [00:14:21] We didn't model that either. [00:14:23] There are a lot of liability issues [00:14:25] that come with having non-staffed hours in a fitness [00:14:28] center. [00:14:29] You hear nightmare stories about the little snap fitness, [00:14:32] 24-hour fitness types, that it's being recorded [00:14:36] and someone has a heart attack on a treadmill [00:14:38] and there's no one there for life-saving purposes. [00:14:41] And especially for a municipality, [00:14:42] that's an even bigger liability than it [00:14:45] is for just a small in-lady. [00:14:47] So yeah, I agree with you on that. [00:14:48] I don't think we need a 24-hour fitness center. [00:14:50] But rather than having to go to the front desk, wait in line, [00:14:52] just be able to go right in the fitness center [00:14:53] during operating hours. [00:14:55] So you're saying we're going to need [00:14:57] to implement three different cards, either an all-access [00:14:59] card to the whole thing? [00:15:00] building, just a fitness center, or just a locker room? [00:15:03] No, we would recommend not that. [00:15:04] Just that you have a single membership type. [00:15:08] It is a facility membership type, [00:15:09] or you pay daily to come in. [00:15:12] So there would only be one swipe type. [00:15:14] But what you could do is control access. [00:15:16] They're actually looking at, they're [00:15:18] implementing this for locker room purposes as well. [00:15:20] I don't mean to get on a sidetrack, [00:15:22] but in new facilities, there is more concern [00:15:25] about underage kids, kids under 13, [00:15:29] being in the same locker room as adults [00:15:31] that are changing clothes. [00:15:32] And so now there's swipe technology [00:15:34] that even your membership card is programmed with your age, [00:15:37] and you have controlled access based on age. [00:15:39] Same concept. [00:15:40] I think that's a really accessible example. [00:15:43] The same concept for entry into the fitness center. [00:15:45] If your rules were that during certain times, [00:15:47] you have to be 15 years old or older [00:15:50] to enter the fitness center, it could just program that. [00:15:52] So all that can be included. [00:15:53] That's my original question. [00:15:54] No matter which one we went with, [00:15:57] whatever operating system we chose [00:15:58] would include the card swiping. [00:16:01] As part of the card printers and scanners as well. [00:16:09] There will also be a monthly hosting fee. [00:16:10] It can be as little, well, it can be less than $650 a month. [00:16:14] But most of the softwares that we [00:16:15] work with, that's sort of the base package for $650. [00:16:18] The implementation, the addition of modules on the front end [00:16:22] is one thing, and then the service of those models [00:16:24] is a little bit of an umbrella. [00:16:26] So when you look through, you should just plan on spending. [00:16:29] Between $650 and $1,200 would be on the very, very high side [00:16:34] of what we believe you would need, but it's a safe range. [00:16:38] The second piece that we've recommended [00:16:40] is creating a dedicated website. [00:16:41] As you all know, the website currently [00:16:43] is part of the city's website. [00:16:44] It's very limited in terms of the ability [00:16:46] to add information, to market effectively, to add pictures, [00:16:49] and to communicate about pool schedules, for example. [00:16:52] When there's lightning, you want [00:16:53] to be able to update your website pretty efficiently [00:16:56] so that people, before they make the drive over [00:16:58] to the facility in the summertime, [00:16:59] can, or whenever, can know if the pool is open or closed. [00:17:03] And currently, the fact that it's part of the city's website [00:17:06] is a challenge to that. [00:17:08] You don't have access to update it effectively. [00:17:10] And it also doesn't really serve the business development [00:17:13] purposes. [00:17:13] So we've outlined the need for facility images, [00:17:18] interior pages with program descriptions, [00:17:20] the ability for the ops software [00:17:22] to be integrated in the website so that people can register [00:17:24] for programs from their house and sign up [00:17:27] for a basketball league, or whatever else it may be, [00:17:30] and the permissions-based updating of the site [00:17:32] so that you've got a manager on duty who can constantly, [00:17:35] when needed and as necessary, access [00:17:37] certain parts of the website to update communication pieces. [00:17:41] Yes, that's my concern, too. [00:17:42] I agree with that 100%. [00:17:44] We need a dedicated website, but we [00:17:45] need someone who's going to be able to operate it [00:17:46] full-time as well. [00:17:48] Is that creating a separate position? [00:17:51] There are. [00:17:52] Or someone who's very tech-savvy can do other things [00:17:53] within the rec center? [00:17:54] Yeah. [00:17:55] What other facilities do? [00:17:56] The way that you can build websites in today's world [00:17:59] is so easy that with a login, you've got a text box. [00:18:02] And the text box is just update it if you have a login. [00:18:06] And then you can save it, and it automatically pushes it. [00:18:08] So there are very limited requirements [00:18:10] for tech-savviness for people to be able to update [00:18:14] those certain areas. [00:18:15] If you want to change pictures, if you [00:18:16] want to change program descriptions, [00:18:18] that will have to be what we would consider a master user. [00:18:20] We always train two master users on the website. [00:18:22] That's what I would want to do. [00:18:23] I don't want to log into the website [00:18:24] and have it look the same a year from now as it does today. [00:18:26] It should constantly be changing. [00:18:28] But the platforms are very easy to switch in and out. [00:18:31] You just need a couple of people who, [00:18:33] if you can format a document in Microsoft Word, [00:18:35] you can format a website the way that these are mostly built out [00:18:38] for the easiest types of websites. [00:18:41] Now, what you've got currently, and from a bigger perspective [00:18:43] for the city, you may have a much more complicated website. [00:18:46] But if you're going to build a dedicated website, [00:18:47] we'd recommend a pretty simple platform. [00:18:49] And there's no coding or programming involved. [00:18:54] We have a marketing person in the department right now. [00:18:57] We can touch on this more tomorrow. [00:18:58] But the software package that we're looking at [00:19:00] comes with a web front-facing interface. [00:19:03] So as you make changes to the software, [00:19:06] it updates directly on a website, which [00:19:08] is a redirect from our site. [00:19:10] So it looks and appears like it's part of the city site. [00:19:13] But since it's a web-based utility, [00:19:14] it's all hitting their servers. [00:19:16] So as the rec center makes changes to the products, [00:19:19] they'll update on that site as they move forward. [00:19:22] And for events like you stated, lightning, and so forth. [00:19:25] Perfect. [00:19:26] Yeah, and it's essentially building a skin, [00:19:28] and then the operating system takes care of the back end. [00:19:31] We don't do, in most of our cases, [00:19:33] now, it's perfectly fine. [00:19:34] That's a fine solution. [00:19:37] We do two separate. [00:19:38] The operating software plugs into the registration portion, [00:19:40] and then there's a website management. [00:19:41] But if that's the solution, and that's what it offers them, [00:19:45] even easier. [00:19:46] So generally, if you were starting from scratch, [00:19:48] now, it may be the case that this is already planned out. [00:19:52] But to build a dedicated website that's not too complicated, [00:19:55] $4,000 to $12,000. [00:19:57] And cost per month is literally just the hosting fee, [00:19:59] because anything that's crucial to the back end [00:20:02] comes from the operating software. [00:20:04] So that's covered in the other monthly fee [00:20:06] that we just discussed. [00:20:09] Expanding marketing efforts. [00:20:11] As much as anything, this is creating a bigger budget [00:20:14] for specific marketing. [00:20:15] And what we've done is outlined, when [00:20:17] we put together a full marketing plan, which is obviously [00:20:20] much bigger than what we've delivered to you, [00:20:23] we look at up to 12 different marketing avenues [00:20:26] for a facility like this. [00:20:28] So how are all of the ways that you're [00:20:31] going to touch people where they live, work, play, shop, [00:20:34] and eat? [00:20:35] What are you going to do when people are in the facility [00:20:38] for cross-marketing purposes? [00:20:39] What are you going to do to get your local organizations that [00:20:42] are to use the facility, to promote the facility even [00:20:44] more? [00:20:45] All of those pieces need to be considered. [00:20:47] So this list of 12, very elementary. [00:20:49] It's literally just a list in the outline. [00:20:53] But when you're creating a marketing [00:20:54] budget and a marketing plan, these should be considered. [00:20:56] And you should have your marketing specialist [00:20:58] weigh in on all of these. [00:21:00] You must have reviewed our marketing. [00:21:02] Is there any one of the 12 that we're doing with a 50% mark? [00:21:07] I didn't look at it from that perspective. [00:21:09] You're doing many of these. [00:21:10] I think the biggest challenge is that it's not dedicated right [00:21:13] now so much to the center. [00:21:14] So the website's a good example. [00:21:16] It's mostly there and sort of a back end of the city [00:21:20] functionality. [00:21:21] At the same token, when there are social media updates, [00:21:24] it's the same social media updates [00:21:26] that people would get for Simmons Park, [00:21:28] as it is for the Rec and Aquatic Center. [00:21:30] And there are certainly synergies to that. [00:21:31] But you'd also like to have the dedicated opportunity [00:21:33] for some different level of social media [00:21:36] or different level of mailers, et cetera. [00:21:38] Really focusing on the unique opportunity [00:21:41] that the Recreation and Aquatic Center brings to this city [00:21:43] and what you have in your assets. [00:21:45] And right now, I think it's more lumped together [00:21:47] with all of sort of Parks and Rec as a bigger. [00:21:50] That is an interesting point. [00:21:51] I don't think you answered my question. [00:21:55] Yes, you're doing some of all of these. [00:21:56] What ones do you think that we were doing? [00:21:58] So you definitely have facility cross-marketing. [00:22:02] You are doing movie nights, for example, [00:22:05] and that level of promotional. [00:22:06] You have a fairly large. [00:22:09] I think probably your number one is social media campaigns [00:22:11] in terms of the updates to the Facebook page [00:22:14] and the pushes that you get through [00:22:16] your email servers and whatnot. [00:22:18] Certainly, you're not doing very much [00:22:20] in terms of print ads. [00:22:22] Very limited in terms of mailers and anything that's paid. [00:22:25] So really, two out of 12 stick out to you. [00:22:28] Well, I might. [00:22:29] Eight. [00:22:31] Just sitting right here, I checked up. [00:22:33] Please expound on the eight then. [00:22:36] What do you want? [00:22:37] You want 50%? [00:22:38] You want 80%? [00:22:39] No, just one. [00:22:40] What's the process? [00:22:42] He didn't have a number. [00:22:42] He didn't have a number. [00:22:43] I'm fine with that. [00:22:44] I just, you know, I don't hear much [00:22:46] about the Rec Center on Southtown, [00:22:48] so I'd like to know which ones we are doing. [00:22:51] Just which ones we're touching. [00:22:53] Our current marketing budget doesn't allow [00:22:57] for these to be done all the time on a regular basis, [00:23:00] but over this last fiscal year, [00:23:03] ones that we have done, direct mailer, [00:23:05] facility, as you said, cross-marketing, [00:23:08] free press and media, local organization participation. [00:23:10] We have done paid radio. [00:23:13] We didn't do the paid print. [00:23:16] Referral incentives, and also the social media campaigns. [00:23:22] Also, it was a little hard to market [00:23:23] what we had the last year. [00:23:25] You can't market what you don't get out of the gate. [00:23:28] We've stalled it for a year. [00:23:30] Literally, we've stalled whatever we were gonna do [00:23:33] for a year to where we are now. [00:23:36] Because a year ago, we were talking about the same things. [00:23:39] 85% of the stuff you have in your report, [00:23:42] same thing we've been told for the last three years. [00:23:46] It's up-to-date information. [00:23:47] It's a little more of a market approach. [00:23:50] Understand that. [00:23:51] But we literally have, if we'd have spent that money, [00:23:55] we'd have been throwing that money somewhere [00:23:58] or flushing that money somewhere [00:24:00] because we wouldn't have got a return on our investment [00:24:04] because we didn't really have anything new, exciting, [00:24:07] to bring people into the facility for. [00:24:10] Yeah. [00:24:12] I don't think any one of these can exist [00:24:14] in a big impact way if it exists alone. [00:24:20] It's really the combination of these seven [00:24:21] and dependent on the five pieces [00:24:24] that we're gonna look at from a facility, [00:24:25] physical facility updates that come together [00:24:28] to create the synergies that you need [00:24:29] to improve your performance. [00:24:31] So marketing alone is not going, you're absolutely right. [00:24:36] If you don't have a marketing, [00:24:38] if you have a marketing plan [00:24:39] that is marketing something that's not desirable, [00:24:41] like your current membership structure in terms of a fee, [00:24:44] in terms of an ease of registration [00:24:46] and an ease of keeping your membership, [00:24:49] it's very difficult to have an effective marketing campaign [00:24:51] for a product that is not in line [00:24:54] with what the majority of people in your market [00:24:57] are looking to purchase. [00:24:58] So I agree with that. [00:25:00] I think this is part of a much bigger plan. [00:25:02] It was hard to market a workout facility [00:25:05] that had the equipment it had [00:25:08] until the changes we just made plus what's coming. [00:25:11] Because we had thrown that money, [00:25:14] the people that were there recognized [00:25:16] that there wasn't anything new and they left. [00:25:20] So it wouldn't have done any good to try to get them back [00:25:23] into something that we hadn't updated or added anything. [00:25:27] Now, from an aquatic standpoint, [00:25:30] the manager came in, [00:25:31] has done a number of different elements, [00:25:34] has driven that side of the business [00:25:36] and done a very nice job. [00:25:39] But that's one leg of the table. [00:25:43] And it only gets you to 12 or 13% [00:25:46] or 15% of your operational return on your investment [00:25:50] because it's only open part of the year. [00:25:52] And we get stuck with operational sides [00:25:55] because of what we do for our local swim teams [00:26:00] and everything else. [00:26:01] You know, if it was wide open all the time, [00:26:03] that's a different story. [00:26:05] And then we always get back to the latter thing, [00:26:07] which I'm glad you didn't even, [00:26:08] all you did was barely brush on it was, [00:26:11] and I would ask the question later, [00:26:14] you know, we don't have a competition pool [00:26:16] so we can't even market to that element. [00:26:17] So that's just a whole nother thing, [00:26:19] but it's kind of where we were. [00:26:22] Yeah, ultimately, [00:26:23] if you were to break the business into two sides, [00:26:26] you've got aquatics and you've got indoor recreation [00:26:28] and community use. [00:26:30] The aquatic side, from what we have observed, [00:26:33] has made a lot of the changes that are possible to make. [00:26:36] You'll see within one of the areas [00:26:39] we recommended an investment in the FF&E on the pool deck, [00:26:41] but we said specifically, you know, [00:26:44] you dig a pool, you dig a pool, [00:26:45] you're stuck with what you've got [00:26:46] unless you want to spend a ton of money. [00:26:48] And right, wrong, or in between, [00:26:51] you've got four bodies of water out there. [00:26:54] So that's a very difficult thing for an operational, [00:26:57] from an operational perspective [00:26:58] to get a high return on investment. [00:27:01] And you're right, you're missing elements [00:27:02] that would normally be recommended. [00:27:08] So changing the membership fee and structure, [00:27:11] this is the main driver of changes to financial performance [00:27:14] from a revenue perspective within the model. [00:27:16] Basically, you know, right now, [00:27:18] your current membership structure does not allow [00:27:22] for really a competitive offering. [00:27:24] You saw, this is a chart from our last update, [00:27:27] which you saw when you break down the prices [00:27:30] that are being asked, [00:27:30] depending on what you're registering for, [00:27:34] the six month, the three month, or the annual, [00:27:37] sorry, the individual month, [00:27:39] the three month or the annual option, [00:27:43] you're not really market competitive. [00:27:44] So what we've recommended is that you go to a software [00:27:47] system that allows you to sign up for monthly, [00:27:50] that all of your memberships are monthly, [00:27:52] like the majority of your competitors [00:27:55] and other existing service providers in the market, [00:27:58] and that you get in line with the market comparable. [00:28:01] So what you'll see in the pro forma is that a single, [00:28:05] just to put it in perspective on this chart, [00:28:07] a single adult would be a $30 fee. [00:28:10] That, however, has a 15% reduction of revenue [00:28:14] for memberships that are for your local residents. [00:28:18] The math behind that is that what we recommend [00:28:22] is that you have a 20% membership discount for a resident. [00:28:25] A taxpayer who is paying in large part [00:28:28] for the types of services that are provided here [00:28:31] gets a discount on their membership. [00:28:32] So it would be $30 at a rate, you know, at a rack rate, [00:28:36] but your residents, your taxpaying residents [00:28:39] would pay $24 a month. [00:28:41] And if you look at the, [00:28:42] I don't know which one's better for you [00:28:44] in terms of the numbers here. [00:28:47] Well, what drives it as a software? [00:28:49] Drives the ability to do that. [00:28:50] What drives the ability? [00:28:52] Because we had a report in 12 [00:28:54] that had us go through a whole rate structure thing [00:28:57] with no implementation of any kind of software [00:29:00] besides what we have. [00:29:01] So basically the lead dog in this sled [00:29:07] has to be the software, [00:29:09] because if you don't have it, [00:29:10] you can't restructure your rates. [00:29:14] And at the end of the day, [00:29:16] if I asked for some off the wall, [00:29:19] jack leg report that wanted me to tell me [00:29:23] how many 45 year olds in my group [00:29:27] came in over the last month [00:29:29] and did they drive additional costs? [00:29:32] Or did we do additional selling to them? [00:29:36] I would have some of that capability [00:29:38] through the new software. [00:29:39] But, and what you're saying is, [00:29:42] is we're gonna have to give up some revenue, [00:29:44] kind of give up some revenue to make some revenue. [00:29:47] Is that kind of the way that I, [00:29:49] to increase the efficiencies [00:29:51] and the competitiveness in the marketplace? [00:29:53] You could look at it as giving up some rate, [00:29:56] but I don't think there's gonna be any dip in revenue [00:29:59] at any point from this. [00:30:00] It's a little bit hard to tell because the data is so difficult to mine based on the [00:30:08] program as it exists, but you'll see an immediate bump in people's interest in becoming members [00:30:17] if they have this option. [00:30:21] Since I think most of our memberships now are on the annual, which is $20 average, you [00:30:28] might actually see a revenue bump just from people switching to take it out of my credit [00:30:34] card every month. [00:30:35] Yep. So you absolutely, I believe, would see on an annual basis, you would see more normalized [00:30:41] cash flow, which is always important. You would also see that a lot more people are [00:30:46] going to be interested in it, and then you're also going to have a number of options that [00:30:52] just aren't available, and despite the fact it's $20 a month, that's the average rate. [00:30:57] The fact is that you have to fork out $240. You have to pay that at once, and that's a [00:31:03] lot more difficult than someone saying, I've got $20 to pay this month, $24 now to pay [00:31:08] this month versus $240 to pay this month for everything else. [00:31:13] I have a question. That three-month membership, can that be any three months of the year? [00:31:18] Yes. [00:31:19] Okay. And then also, the kids that come in the summer, do they have a family membership [00:31:25] or some kind of membership, or is that a separate program? [00:31:29] Three months? [00:31:30] Well, do they have some kind of membership, or are they just signed up for the summer [00:31:34] program? [00:31:35] Summer camp? [00:31:36] Yes. [00:31:37] That's not a membership. That's just a program. [00:31:38] I think this is just going to be instrumental, though, in targeting young adults. As of right [00:31:42] now, we have kids that go there in the summer, and old folks that come and play pickleball, [00:31:46] and some people like to use the pool. In today's world, ease of use is everything, especially [00:31:51] for millennials and your generation. That's it. I mean, without the ease of use, they're [00:31:55] not even going to take the time to even consider something like this. So we make it easier [00:31:59] for them. We're trying to attract these individuals who live in our downtown area. They're not [00:32:03] going to want to bring a written-out check for a year's annual membership to the rec [00:32:06] center. It's just not going to happen. So I think it's going to help improve our target [00:32:12] market or segment of the market that we're completely missing out on right now. [00:32:16] What do you suggest? [00:32:17] From the website. I'm sorry. Go ahead, Judy. I'm sorry. Please go ahead. I apologize. [00:32:21] Thank you, Bill. So if I'm understanding you correctly, you're suggesting a $20 per month? [00:32:28] No. $30. [00:32:30] $30 per month? [00:32:31] All right. $30 per month. [00:32:32] 20% discount for taxpayers. [00:32:35] But that's $30 per month per person? [00:32:37] That's the individual rate. We also have – [00:32:39] And what do you – [00:32:40] We've got a youth rate, and we've got a family rate that's built in there as well. [00:32:42] Okay. That was my question. [00:32:43] It's in the details of it. [00:32:44] Okay. You have a family rate. [00:32:45] If I'm reading the chart, the $30 a month would put us right in with L.A. Fitness and Gold's gym, [00:32:51] which would make us the least expensive one that actually has a pool or pools, which would be – [00:32:58] This level of asset. That's right. [00:32:59] Would be very, very attractive from that standpoint. [00:33:02] And then when you pump that down to $24, you're in line with other facilities that don't offer nearly what you offer. [00:33:07] So that's sort of the thought behind it. I'll tell you what. I've got an example of membership on here. [00:33:13] We'll clarify it there. So we'll keep that. [00:33:15] Okay. It's in the report, your breakdown. [00:33:18] And even in this presentation, so we can look at it here. [00:33:20] The website improvement to be stand-alone or stand-alone that back-feeds into whatever we have, [00:33:29] is there any approach you've done in some of your others that has an app that goes along with the rec center as a tandem? [00:33:40] Because Jeff just pointed out, once we get to a certain age group or demographic, [00:33:48] they want all that convenience from their home, from their phone, from their iPad, whatever. [00:33:55] I just didn't know if that tandem will with the website with an app, too. [00:33:59] That's a great point. Just to kind of piggyback on that, with my industry, with insurance, [00:34:04] as I said before, we have one gentleman that runs our website for us, and he does three reports at our annual meetings. [00:34:12] The use from mobile devices to our website is up 80% from two years ago, 80%. [00:34:19] So I've had, as I told Rob today when we called to do something on my computer, [00:34:25] we're actually going to a new management system for my business where we can, [00:34:31] and people that agents have been using it love it, you can literally just type and it sends a text out. [00:34:36] Because when you call people, send them an email, you don't hear back. [00:34:39] You send them a text, oh, thanks, I'll send the check. [00:34:42] It's just what people are used to now. [00:34:45] Most of the modern websites are aware of what device you're looking at it on, and that makes a big difference. [00:34:52] Mobile compatibility is actually, so in this type of facility, mobile compatibility of the website is out-trended apps, [00:34:59] simply because it's easier to implement. [00:35:01] But we expect that the technology will continue to advance in the same way. [00:35:05] I just have to ask the rhetorical, the sarcastic question, [00:35:11] do we have to make sure that our Wi-Fi signal inside of our facility is well enough, [00:35:19] so you invite them to use it, but when they're standing inside your facility, [00:35:22] they can't get out because there's too much metal or whatever. [00:35:25] I'm just asking that because... [00:35:27] So you're saying they can get to the site, but there isn't an app at this point? [00:35:34] We haven't recommended the development of an app. [00:35:37] It's a little bit... [00:35:40] What do you mean? [00:35:42] So we didn't build in the cost for an app into the fees that you have here. [00:35:47] A mobile-friendly site can do pretty much everything. [00:35:50] Yeah, that's why I'm asking. [00:35:53] Forgive me if I'm going down the wrong road here, [00:35:55] but when you create a website in this day and age, it's got to be where it's a mobile. [00:36:00] It's always mobile-compatible now. [00:36:01] The conversion is for older websites. [00:36:03] I can't think of an industry that is not mobile-friendly. [00:36:07] And more often than not, I'm sure that people, [00:36:09] especially looking for a rec center or recreation, it's something to do. [00:36:13] It's the phone. [00:36:16] Real quick, two other projects we are currently working on [00:36:19] is the redesign of the city's website as a whole and a new app. [00:36:23] And the new app, like Rob said, with a redirect icon on the app, [00:36:27] will facilitate any reservations or anything you want to do off the site. [00:36:32] Thank you. [00:36:35] So in the interest of time, I know you guys also have a 7 o'clock meeting. [00:36:39] We have a 6.30 break. [00:36:41] Perfect. [00:36:42] We're right on pace. [00:36:45] This group has to eat. [00:36:47] And there are certain times, [00:36:49] otherwise you can't even throw Snicker bars at us and survive the last 15 minutes. [00:36:54] I'll make sure that we're done before 6.30 then so we don't get decapitated. [00:36:57] So just really quickly, in terms of the fifth of seven for operational improvements, [00:37:02] we've recommended that you incentivize staff. [00:37:04] And incentivizing staff isn't simply forking out dollars that don't currently exist. [00:37:08] It's building a structure and being able to track in real time [00:37:11] to reward ownership of the business. [00:37:13] And so looking at this example, this is the basketball revenue and expenses. [00:37:17] And so if you look at the way that we've broken it down, the basketball director, [00:37:21] the management assumption is that the basketball director is paid 10 percent of gross revenue. [00:37:26] So in year one, when it's $17,000 in revenue, [00:37:30] the expectation is that for the person who's in charge of basketball, [00:37:33] obviously that's not its own position. [00:37:36] It would be part of multiple responsibilities. [00:37:41] But that $17,000 in revenue is worth $1,700 in salary. [00:37:45] That doesn't mean that you're just going to start paying them more than 10 percent. [00:37:49] That's our recommendation for the price structure. [00:37:51] What it means is that if that person goes out and they build that into a $22,000 program in year one, [00:37:57] they earned an extra $500 because they made $5,000 more in revenue and that 10 percent still holds. [00:38:04] It also means that if you are trending below your targets for the season, [00:38:09] that you're going to cut some hours back for your staff, [00:38:11] you're going to cut your budget back for your referees, et cetera. [00:38:14] It's real-time adjustments based on real-world operating and happening and being tracked on time. [00:38:20] So the concept there is that everyone controls their own budget or knows what their own targets are, [00:38:26] and they are incentivized to eat what they kill, if you will. [00:38:30] We appreciate that. [00:38:31] There's an implementation element that comes across a city structure. [00:38:37] Can you take that red circles out of there for a second? [00:38:42] Typically from an implementation. [00:38:44] I recognize that that's the way because you've got somebody that gets fired up. [00:38:51] I know that a couple years ago that when they were doing the annual membership sales and stuff, [00:38:56] they had kind of an internal contest and who sold the most and how that was and all that. [00:39:03] I recognize what you're asking us to do is the way that business would operate and incentivize their people. [00:39:12] The problem is we can't incentivize that across every department, [00:39:18] and then we run into the haves and the have-nots, [00:39:21] and maybe that might drive more people to go want to work over at the rec center [00:39:25] at a different capacity or whatever. [00:39:27] But I'm just saying that we would have to be sensitive on how we could drive that [00:39:35] or put the right protocols in place because obviously the rec center, police, fire, a few others, water, [00:39:45] they have the most interaction with the public, and I don't mean to not include other departments, [00:39:52] but there are some that don't have the same customer involvement on a daily basis. [00:39:58] Sure. [00:39:59] Also, a thing you can run into in this situation is that who talked to the person first? [00:40:05] They came back. [00:40:06] Well, I'm the one that signed them up, and then there's also the thought that am I spending more time [00:40:13] trying to get my extra couple dollars than I'm actually doing my job? [00:40:19] It is good to think about because obviously we want those people to be engaged [00:40:27] instead of just showing up, punching a clock, and it's 5-0-1, and they say, I'm out of here. [00:40:34] But it might be better to incentivize the team instead of the individual. [00:40:38] Yeah, there's something. [00:40:39] Incentivizing the rec center staff, though, is much different than, say, [00:40:42] incentivizing the fire department to take care of more fires. [00:40:46] I understand that, but some might feel that they have just as big of a customer service involvement, [00:40:52] but I agree with you. [00:40:53] I understand. [00:40:54] I hear both points, but I think it's important to do so. [00:40:56] Any boss wants their employees to just, like you said, not show up and punch a time card and leave. [00:41:02] With my employees, I'm like, yeah, I need you all to bring in business, too. [00:41:06] Don't just sit here and wait for the phones to ring, and they know that. [00:41:09] It's time sensitive. [00:41:12] Then they get criticized for either being overly customer service friendly or under. [00:41:17] So it's balancing that. [00:41:20] I agree. [00:41:21] But I think it's something we should definitely consider. [00:41:23] We don't want our employees fighting with each other over who's signing up so-and-so, [00:41:27] but make them feel like this is your rec center. [00:41:30] It's all of ours. [00:41:31] That's why I suggested the team-to-team incentives, [00:41:35] because some people I know have inside sales and they have outside sales. [00:41:40] But it's the building that sells, and when you sell the building, [00:41:43] then the inside salespeople get incentives and the outside salespeople get incentives. [00:41:47] Equal. [00:41:49] One other thing to think about here, the concept of percent-based cost of goods sold for revenue [00:41:54] is that take incentives off the board. [00:41:56] Let's take a look at the next line down, your basketball staff. [00:41:59] Basketball staff are typically not going to be incentivized for the director doing a better job of marketing, [00:42:05] more timely, you know, customer service, training the staff, et cetera. [00:42:08] But it takes time to service more revenue, and that's the other piece that you want to be conscious of. [00:42:13] You want to build in, for the customer experience perspective, [00:42:17] the amount of time that it's going to take to service more revenue. [00:42:19] So if you go from 17 to 22, that means that you need more staff hours to serve the $22,000 worth of revenue. [00:42:26] So it's all about scalability, but it only works if you're constantly running the reports [00:42:30] and knowing on a biweekly basis what your cash flow is, what your accrued revenue, [00:42:36] what your earned, unearned revenue is, and what your actual staff salaries are during that time. [00:42:40] Just one more quick question on basketball. [00:42:42] I don't know if we're currently doing this, but my kids play in the Salvation Army League, [00:42:46] and there's nowhere to practice. [00:42:48] They have one court and, you know, four different age levels. [00:42:51] So every last year, every time we sign them up, it's like, where are we going to practice? [00:42:56] I mean, it's been in someone's driveway out front before. [00:42:58] Is that something that we can look into doing or we don't want to do? [00:43:01] We don't want any outside, you know, leagues coming in and using the facility? [00:43:05] If we did, we'd have to get, you know, the baskets, the rims that hook up [00:43:09] and come down, you know, so it's six-foot rims. [00:43:11] But I've just never seen any teams in there practicing or anything like that. [00:43:15] We do. [00:43:16] We have a lot of requests, especially during the different seasons, [00:43:20] such as Salvation Army and Fastbreak and so forth. [00:43:22] We used to have Fastbreak ourselves, and then they moved out once the Florida statute [00:43:28] where you had to have every volunteer coach life scanned. [00:43:30] So they moved to another facility because they weren't going to pay for that. [00:43:34] Life scanned? [00:43:35] What is that? [00:43:36] It's an instantaneous fingerprint to prevent sexual predators being a volunteer coach. [00:43:40] They wouldn't agree with that? [00:43:41] It's a Florida statute, so I have no option but to have them do that. [00:43:46] And for whatever reason, they opted not to, so they moved to another facility. [00:43:50] They being the Fastbreak League? [00:43:52] The League, yes. [00:43:53] But what we did then and what we do now is we— [00:43:58] I don't know where they're getting their coaches. [00:44:02] But they're not at our facility because they're not scanned. [00:44:07] They're not at our facility. [00:44:08] I haven't done this well, but I think it's $65 a coach. [00:44:11] Well, we offer the—I believe it's $40. [00:44:14] We offer the outdoor courts at any time. [00:44:16] If anybody wanted to use those first come, first served, [00:44:18] what we started doing now because we're actually getting ready to start our own basketball league, too, [00:44:22] and we've got everything from very young all the way up through adults. [00:44:28] We have now started hosting after hours, so to speak, practice hours. [00:44:33] So we're doing those on Saturday nights. [00:44:35] So it's not taking away from the general public. [00:44:37] And also early morning on Saturdays and Sundays. [00:44:40] And how young is our league going to go down to? [00:44:43] I don't recall off the top of my head what staff said, yes. [00:44:46] I'm sure it's the age that can only—has to have the 8-foot goals [00:44:50] because we don't have the capability to go to 6. [00:44:53] And that's what the rec center in New Parichi used to be known for. [00:44:56] That's all it was. [00:44:57] That's all it was known for. [00:44:58] I remember. [00:44:59] I still got my card. [00:45:00] street floor with very little padding at the end and very little in space, because I know [00:45:05] of a few friends of mine that lost a few teeth because they went into the block, but that's [00:45:12] where junior high ... I always say, you always date yourself, but that and its own little [00:45:19] concerts they used to have there once a month. The boot band used to be there on a regular [00:45:24] basis. [00:45:25] That's why I ask, because you hear about these leagues and no one has a place to practice [00:45:28] yet. We have these huge gyms that are ... [00:45:30] We would love to, and if the goals aren't short enough, too, I know of some local elementary [00:45:34] schools I can get with you on later that do allow practice on shorter goals, too. [00:45:39] Sorry to hold it up. [00:45:40] We're also the home for Trinity College basketball, and we're also the Christian school on Massachusetts. [00:45:52] I can't think of their name right now. [00:45:55] Madison. [00:45:56] That's the one. [00:45:57] Madison. [00:45:58] Madison. [00:45:59] Madison. [00:46:00] This is where they played ... [00:46:01] Basketball and volleyball. [00:46:02] Correct, but for both. Bible Baptist or whatever, I can't remember what it's called. Faith. [00:46:05] Sorry, Evan. [00:46:06] No problem. The next one is super quick. It's expanding in-house programs. We just showed [00:46:12] you basketball, but developing more programs. Aquatics has done a good job of this so far. [00:46:17] If you look at the previous year in terms of how revenue was allocated, that doesn't [00:46:22] mean that you didn't do anything, but this plan really focuses on basketball, volleyball, [00:46:26] aquatics, youth programs, to a certain extent, birthday parties. Tennis is already sort of [00:46:32] in-house program, but really making sure that what you are doing is primarily looking, first [00:46:38] and foremost, to build your own programs and control the customer experience, because especially [00:46:43] when you increase your membership value and you want people to become members, and there's [00:46:47] an incentive built into program registrations for being members as well, 10% discount, the [00:46:54] reality is that if you are allowing just outside volleyball groups to come in and practice, [00:46:59] then as soon as they find a less expensive practice space, they can leave. People aren't [00:47:03] tied to your facility. They're tied to that program. We've built in, they're not big numbers. [00:47:08] You just saw basketball. It's $17,000 up to $20,000. We didn't overextend what we think [00:47:14] the opportunity is. We've been what we would consider very safe in these projections, but [00:47:18] the idea is there. Go out and build your leagues. Go out and build your camps and your clinics [00:47:22] and control. [00:47:23] I just want to say one thing about leagues and stuff, that you can't compete against [00:47:26] high school and middle school. You can't do it during the season that they're doing theirs. [00:47:31] It's a timing perspective, so girls, you essentially can't start girls in this county until, yeah, [00:47:38] you can do it in the fall and you can also do it in late... [00:47:40] You can't do it in the fall. [00:47:41] Isn't it, I thought girls, oh, boys end in February, March, right? [00:47:45] Boys aren't in this county. [00:47:47] Oh, you don't have any boys high school basketball. Okay. [00:47:49] No, no, I'm doing volleyball. [00:47:50] Oh, gotcha. Okay. Yeah, sorry, I thought we were talking basketball. Okay, and number [00:47:58] seven, this is exactly what we said before, accurate and timely reporting. It's not just [00:48:05] having the software system, but it's also having the exports for the timing. This chart [00:48:09] is immaterial. You know it from before. It was just the fact that the reporting, what [00:48:15] it says and what the dollars are didn't line up. That's something that with an operating [00:48:20] system and the focus on actually running and reviewing the reports on a regular basis, [00:48:26] of course, which almost can't happen right now because the software, the operating software [00:48:31] is prohibitive, will improve your effectiveness and your operational agility, as we call it, [00:48:39] right, to make those changes using the basketball example again, expanding or decreasing hours, [00:48:43] making sure that you're in budget and offering the service to the customers. [00:48:47] So Evan, are you saying that they're not intuitive enough or we don't have those modules? So [00:48:59] the rec track, we could get those modules and put them in, or are you saying that this [00:49:05] program is not as intuitive as some others? This is a little more of a, I'm going to say [00:49:10] using a dinosaur. I don't know what other comparison to make. Yeah, I think there are [00:49:13] three issues. One is that the software system itself is not phenomenal in terms of its ability [00:49:24] to ask the right questions, if you will, when someone's registering to have the information [00:49:30] coded correctly. So it doesn't capture the right information, and so when you export [00:49:36] not the right information, you get the not the right information in the report. So number [00:49:41] one. And again, is it because of a module, lack of the module? I just find it almost [00:49:47] incomprehensible that a program that's designed for a recreation department would not have [00:49:53] those key pieces in it. We didn't buy it. We built the facility, we put a substandard [00:50:01] reporting process into a facility. We didn't know what was coming and how it was, and that [00:50:08] department has taken so many hits in the last six years, both staff, both operationally, [00:50:14] both non-attentive on equipment, and then we come back and want to say, why doesn't [00:50:19] it work today? Because we haven't kept up with the times. It's exactly why we're here. [00:50:24] You can go buy the modules, but the program that we have won't lead that pack of dogs. [00:50:30] It's supposed to be pulling that sled and making whatever amount of money we want out [00:50:34] of that facility. It won't ever break even, but if you want to keep the same dog with [00:50:41] a broken leg, you can do that. But on tomorrow night, we're talking about a brand new system, [00:50:47] because that's what you came to us with in April and said, this is your most broken thing [00:50:51] about this program, and if you don't fix this thing first, everything else you do is [00:50:57] not going to work, because it's the information you can't track. [00:51:01] You have an $87,000 income line on your report you gave us, that's cumulative money, and [00:51:12] it's like, you probably come from 13 different places, but you can't track it going forward. [00:51:19] Well, like I said then, we don't believe that bags of money are walking out, right? [00:51:24] It's as much as anything, what I said earlier, garbage in, garbage out. So a good example, [00:51:30] and I don't remember the exact numbers, but your membership report, if you ask for an [00:51:34] age breakout of membership report, you see something like 73 zero-year-olds out of 560 [00:51:39] people. That's just not accurate. The reason is because the software doesn't require you [00:51:44] to enter a valid birthday, and so if you're going through and you don't have the proper [00:51:48] training on the software, or you have a line of people and you want to just skip through [00:51:52] things, or it just doesn't get entered at the right time, it shows up as a zero. [00:51:56] And so that would create the same concept, right? Garbage in, garbage out, but when it's [00:52:01] members' ages, it's one relatively small problem. When it's dollars that you're expecting, [00:52:07] it's a very different conversation, and so cleaning this up and knowing that it's cleaned up is [00:52:13] I think what Griffey's trying to ask you is, can we add to the existing software program [00:52:18] that we have? You're saying yes, but you're not recommending it. I mean, I'm hearing out [00:52:22] of you, brand new system, brand new operating system. [00:52:25] I'm not not recommending it. I'm recommending that you look at at least three options and [00:52:28] weigh them against each other. [00:52:30] Because they don't even, in their $6 billion business, there are $6 billion of stuff that [00:52:36] they've looked at. Without disparaging that particular program, because obviously they [00:52:42] probably have to bump up against them periodically at different things, they're just not the [00:52:48] top three anymore. [00:52:50] And you can add the different programs to them, but it still doesn't bring them up to [00:52:58] the top three of what's in the marketplace today. [00:53:01] Go along with you, Bill. I think we have to erase everything that's in there and put [00:53:06] it back in so we have the information. [00:53:08] Well, see, my follow-up question was, because of what you were bringing up was, you've [00:53:14] talked about the flexibility, about the ability to go in and look at this. Mine was going [00:53:18] to be, explain to me the process and the procedure. Because obviously if we want to be that [00:53:26] dynamic and that agile, I've heard you say part during this meeting that you want to [00:53:31] look at those every two weeks or once a month. But obviously, as everybody else has pointed [00:53:37] out, you've got to have the right people information on the front so that you can pull out the [00:53:42] right information on the back and then be able to track it through there and then back [00:53:46] through Tyler when it comes to balancing your books from an audited perspective. [00:53:53] So the best software systems, in terms of operations, you can pre-program your reports. [00:53:59] When I ran a facility before coming to SFA, every single day I got the membership report. [00:54:05] It told me how many new sales we had, how many tours we had, how many cancellations [00:54:10] we had, and where we were for the month and the year to date versus budget. So every single [00:54:16] day I got that. Once a week I got the program report. Every two weeks I got the staff salaries [00:54:21] report, et cetera. So you set it up based on who should get it and what those reports [00:54:28] are. But it should be easy. You shouldn't have to burden your staff with running an [00:54:33] hour and a half of reports every day. That's a wasted position when the technology can [00:54:37] do it for you. [00:54:39] No more Excel spreadsheets? I mean, I can't imagine we couldn't live without those. [00:54:44] Based on tomorrow night's agenda, it looks like we've already chosen one is my point. [00:54:48] Do you have a recommendation for you to consider? [00:54:50] Let's look at the physical facility. [00:54:52] Physical facility recommendations should be pretty quick. You've gone through before us [00:54:57] a pretty extensive couple of sets of recommendations. So we're going to focus on the five that we [00:55:02] think are most important. Most of everything that we've recommended is in line with Kimley [00:55:07] Horn's recommendations related to what the original plan was and then a cost-saving version [00:55:14] of that plan to decrease some of the expenses. So these five we're going to talk about. [00:55:18] The first is critical to being able to not only entice people to become members, but [00:55:24] also then to serve them when you grow, and is moving and expanding the fitness center. [00:55:29] So as you know, what just popped up as purple is the existing space of the fitness center. [00:55:34] That's moving up to the front, and you can see very clearly you're more than doubling [00:55:39] your space, right? And when you more than double your space, you're going to need new [00:55:42] equipment. That's in our report as well. We would recommend shifting the structure for [00:55:46] the equipment, leasing certain equipment versus owning certain equipment, et cetera. [00:55:50] It's all in there. [00:55:52] Part of that's already been done. [00:55:53] Correct. [00:55:54] We have brand new cardio in there. It's been there about five weeks, and now we're just [00:55:59] waiting for the other to come. That's because we had to at least maintain what membership [00:56:06] base and elements we have, because on the flip side is that moves over into the purple [00:56:13] section, and we can't afford to have doubling that purple number at the point in time that [00:56:19] that would be completed. I mean, you can only put so much on your plate from a capital perspective, [00:56:27] whether it's a leased asset or it's an owned asset. [00:56:31] That's right, and that's the concept that's most important, is that if you think about [00:56:35] the predicament that you're ... Predicament might be a strong word, but what you just [00:56:39] placed in terms of we have to update this if we're going to maintain any relevance whatsoever [00:56:43] with our current members, you want to keep that in mind as you go forward as well. You [00:56:46] don't want to be in the same spot six or seven years from now where you've got the same treadmills [00:56:50] that are getting retired, and you've got a big capital outlay. [00:56:53] What we typically recommend is that you break down your cardio into four different areas. [00:56:58] You run a lease for four years, and every year one new set gets replaced through the [00:57:05] new lease, and so that way in year one of the replacement schedule, you are changing [00:57:11] out all of your treadmills, and that's a new thing to market to your members that are current [00:57:15] and your potential new members. The next year, all your spin bikes. [00:57:18] The next year, all of your stair climbers, and the next year, all of your ellipticals, [00:57:22] and that series allows you to constantly update it, whereas nobody cares about new purchases [00:57:32] of your dumbbells and your barbells until they've been there for 20 years and all the rubber is [00:57:38] ripped off of them. [00:57:39] The size of the facility that you're talking about, what is a guesstimate on your annual lease? [00:57:45] We didn't create the annual lease structure within it. I can get you the numbers. [00:57:52] I don't have it in there, and it will also depend on the structure that you currently have. [00:58:00] I don't know what the current contracts are. [00:58:06] The second piece is increasing total flex space. When you move the multipurpose center, [00:58:10] that becomes flex space, but you're losing the oak room. I didn't speak there right. [00:58:16] Losing the oak room, that's a bigger space than what you currently have for the fitness center, [00:58:21] and additionally, in order to continue to grow, summer camp just maxed out again, [00:58:27] and it's bigger than it ever has been, and it's considered now maxed out. [00:58:30] You need this flexibility, and currently, the oak room is a great asset for you in terms of groups [00:58:36] coming in and using it. If you constrict that space by replacing it with just a smaller space, [00:58:41] that's going to constrict what you're currently serving and your ability to grow in the future. [00:58:46] There's been plans in the past to bump out off of that old fitness center and go into the edge. [00:58:51] That's something that the city has looked at previously, plus the reason that summer camp is back up [00:58:58] is they took the perspective this year, at least in my mind, is that we decided we're going to max it out [00:59:03] because last year they limited it because we were supposed to be under construction. [00:59:06] At the end of phase of that, we didn't want to displace kids and stuff in the July-August time frame, [00:59:12] but we looked at bumped out because you make other recommendations here in your report. [00:59:19] That second purple area is what we have in the most recent documents as the new additional multipurpose space. [00:59:26] We would consider that probably a little smaller than what you would want, and that shape of a room [00:59:31] when you're in an L and that's the additional space is going to limit you. [00:59:35] We'd like to see that bumped out to a square and maybe a little bit bigger. [00:59:38] What kind of square footage are you talking about? [00:59:40] We would recommend looking at something that's close to the size of the oak room right now. [00:59:45] What is that size? [00:59:48] I don't know the number off the top of my head. [00:59:50] 2,000 feet? [00:59:52] It seems like it's got to be over 2,000 square feet. [01:00:00] I don't recall the exact figures off the top of my head. [01:00:03] What is the sizes of the blue? [01:00:07] Those are the new spaces. [01:00:09] I've got it in one of the other ones. [01:00:12] I don't know the numbers off the top of my head. [01:00:14] We know the size of the purple on the right, the existing. [01:00:18] It's in all of the documents from the architects. [01:00:21] This is kind of what we should be talking about. [01:00:25] Looking at that now, what we're looking at right now, you've already moved the purple [01:00:31] up to that area up there. [01:00:38] The blue and green is now the Oak Room? [01:00:41] Currently. [01:00:42] Currently? [01:00:43] Yeah, the Oak Room. [01:00:45] This is the Oak Room right now. [01:00:46] The blue is new. [01:00:49] This is the Oak Room space here. [01:00:53] Where the fitness center is going is in where the current Oak Room is. [01:00:59] The plan is to build out additional space here and additional space here. [01:01:02] This is Child Watch in the plan. [01:01:04] I'll talk about that in a moment. [01:01:08] That gives you this space, plus you're essentially doubling it over here, and then you've got [01:01:11] a Child Watch allocation here. [01:01:13] Now you're suggesting that the Oak Room go where? [01:01:17] The Oak Room can't really be replaced by this, because it's a little bit smaller. [01:01:23] What we recommend is that you also add in an additional space. [01:01:28] This is what's already in the plan. [01:01:30] Can you move stuff with that? [01:01:31] I can't. [01:01:32] This is a PowerPoint, so it's pre-loaded. [01:01:33] You moved the purple. [01:01:34] No, it's pre-loaded. [01:01:35] I just clicked it. [01:01:36] You're suggesting that to replicate the Oak Room, to add it there in the purple, and then [01:01:46] add this other space. [01:01:47] Does that make sense, to have those separated areas? [01:01:52] It does, because it's going to give you more flexibility for more spaces, but what we don't [01:01:56] believe is that just the addition of this small space that's in an L is going to be [01:02:02] the most functional use for you. [01:02:04] We recommend that this space is essentially expanded to the size of the Oak Room. [01:02:09] That's really the replacement for the Oak Room, although it's a new space, and then [01:02:12] you're giving this additional, the existing membership space, as more flex space. [01:02:17] That's what Kimberley Horne recommended. [01:02:20] This is the Kimberley Horne. [01:02:21] Over and above that, both of those back up to the pool area, so whatever programs and [01:02:27] stuff you're doing, whether it's birthdays or whatever, those still flow out to the deck, [01:02:32] and don't make them stand alone, where you've got to walk people all the way across. [01:02:41] That's my understanding of what we have. [01:02:43] All we're trying to do is expand the flex space, which is another revenue potential [01:02:48] generating area for the uses that we've identified. [01:02:53] Taking the L space and squaring it off. [01:02:55] The purple and purple, we're just calling flex space at this point? [01:02:58] Do a stick, because I'm not as tall as Jim. [01:03:03] You want this? [01:03:04] No. [01:03:05] One other question. [01:03:06] The purple L that you've got there, so that light lavender is all outdoor space currently, [01:03:15] and so this dark purple would be on the ... I'm trying to orient myself. [01:03:20] That's where the fence, the gate is, when you come up the sidewalk to the back side [01:03:26] of Elaine's office, that's exactly where you're talking about bringing in and putting in that [01:03:32] It's actually an extension of where they have Chick-fil-A in the center. [01:03:39] Actually I think it's a little bit confusing for two things, because when ... He's just [01:03:43] talking about PowerPoints. [01:03:44] When he takes the purple ... [01:03:47] You want to use the ... [01:03:48] No, I think I can explain. [01:03:49] When he takes the purple from the fitness center in the back and moves it, he's not [01:03:53] able to rotate it, correct, Devin, so he's just laying it up there. [01:03:57] For the first part is the entire Oak Room, which is in green, that area right there. [01:04:03] No, just the Oak Room part. [01:04:04] That right there is the Oak Room. [01:04:05] Then the blue would be the expansion, which is the new area. [01:04:08] That combined, just the first blue and the first green, would be the combined new fitness [01:04:13] area. [01:04:14] Then when you go to the next room, which is the first parts in green, that's our current [01:04:19] game room. [01:04:20] Then the blue portion expanded out beyond that. [01:04:22] That would be game room, indoor playground, child watch, so forth. [01:04:27] When we come down to the new rooms that are in blue, the blue L, actually the way that's [01:04:32] designed, as you see the portion in green there, that's the current conference room, [01:04:37] to give you a perspective. [01:04:39] The idea, the plan was to take that blue area, the green area, and then the blue area right [01:04:44] up beside it, and make one rectangle-sized room, and then a divider wall right there, [01:04:51] and then the other one would be a long rectangle room. [01:04:54] Those would be, as Bill indicated, outdoor access to the pool deck, so they could be [01:04:58] what's referred to as a wet room, to where you could have parties or classes that would [01:05:03] come off the pool deck and have a wet floor. [01:05:05] Then the purple shaded area in the back is our current fitness center. [01:05:10] We would switch space, in essence, from the current Oak Room, and then that would become [01:05:15] fitness. [01:05:16] Then current fitness, which is in purple up there now, would become a new activity-type [01:05:22] room. [01:05:23] Then Elena ... [01:05:24] Go ahead. [01:05:25] Sorry. [01:05:26] Would that have access? [01:05:27] Because that's right off the ... [01:05:28] It could be a multi-purpose. [01:05:29] It could be instructional classroom. [01:05:31] It could be rental space for parties, classes, so forth. [01:05:38] I know we're getting onto child space next, and I see you disagree with a couple of the [01:05:42] recommendations by Kimley-Horne. [01:05:44] I wasn't really sold, as far as the child space goes, as far as having an indoor playground [01:05:48] facility for parties. [01:05:49] To me, it just reminded me of just a crammed McDonald's indoor playground, where it's really [01:05:55] just claustrophobic and not really loving it. [01:06:01] No ball pool to jump in and swim around? [01:06:04] Are we still, as far as the recommendations on this, I don't see ... I see your points [01:06:10] with the child care, but are we doing away with that indoor facility, the playground? [01:06:14] Or are you still wanting to do that? [01:06:15] We haven't. [01:06:16] Haven't even gotten there yet? [01:06:17] No, we haven't. [01:06:18] Okay. [01:06:19] And that's a decision that will make, or will be made by you, after we get some additional [01:06:27] direction from you on the future of the project. [01:06:28] Right, we're just basing this discussion on just square footage for now? [01:06:31] Right. [01:06:32] Yes. [01:06:33] Yes. [01:06:34] Pardon me. [01:06:35] We're trying to max into what their economic model was, because that was their assignment [01:06:39] to bring us back, how we could maximize our revenue. [01:06:43] That's the reason we've been doing this for six months, again, while we're back here, [01:06:48] is to figure out the ways that we can offer as many of our existing services, new services, [01:06:57] to meet up with what the demand is that we understand we've been running for the last [01:07:01] five or six years, or seven, since we developed it. [01:07:05] And I agree with Jeff. [01:07:06] I really, if it's a care situation, or child care, I'm willing to offer ... I don't see [01:07:16] the why doing that. [01:07:17] I don't see anybody else offering them a little playground and stuff. [01:07:20] To me, it's an additional cost element. [01:07:23] And I just think that we ought to offer them the ability to child watch their children [01:07:30] as part of our enticement to come. [01:07:33] But I don't think we ought to make it into the McDonald's of the center of Newport, Richmond. [01:07:41] I just want clarification on how specific we're getting, or in discussion of the remodel [01:07:46] of the rec center. [01:07:47] We're talking a lot of money. [01:07:48] But honestly, indoor space, whether it's just the space, I mean, there's so many innovative [01:07:53] things that kids are using now. [01:07:55] Other than a playground, yeah. [01:07:56] Just go to the airport. [01:07:57] Absolutely. [01:07:58] Just phone. [01:07:59] If your kids are at the airport waiting to get on their dadgum plane, they've got those [01:08:01] little climbing things now. [01:08:05] I don't have to put them a slide and an indoor thing. [01:08:09] Just don't give them pots and pans to bang together for 15, 20 minutes. [01:08:15] I'd like to take a couple minutes here, because I think, I wish I had something a little longer [01:08:21] and pointy. [01:08:22] Have a ruler, Chopper. [01:08:23] Does that help? [01:08:24] Have a ruler. [01:08:25] Does that help? [01:08:26] Pointy. [01:08:27] Can somebody get him a stepladder? [01:08:28] Yeah, that's what I need. [01:08:29] Can't Jeff be your pointer? [01:08:30] Yeah, I'll get on his shoulders. [01:08:31] No, just tell him. [01:08:32] Say, here, point to this. [01:08:34] This is my counsel, working together. [01:08:38] Let me try this. [01:08:39] It's just this green button. [01:08:40] Jeff! [01:08:41] No, we got the laser. [01:08:44] Well, there's a glare right here. [01:08:48] We're better at this wall right here, that we have, the existing wall. [01:08:52] That's a frontage wall, and that's beautiful. [01:08:56] And if we move that out, it's a lot of dollars. [01:08:59] It's a lot of dollars. [01:09:00] It's a lot of dollars. [01:09:01] And if we add in this space, and this space, and this space right here, [01:09:07] if I remember correctly, it's close to $1,000 a square foot, building it out. [01:09:13] $1,000 a square foot, you can get commercial buildings for about $200. [01:09:17] It's only because Kim Lee Horne. [01:09:19] Excuse me, excuse me, excuse me. [01:09:21] Okay, get there. [01:09:23] Excuse me, thank you. [01:09:24] So this is a big dollar, just to make the front facade look good. [01:09:29] What I think is that this, and actually this distance would be the area [01:09:35] that you actually look at. [01:09:36] And this is the distance now that you can actually look at while you're [01:09:39] working outside. [01:09:41] And I think that's probably twice the distance. [01:09:43] I would like to see us take the dollars and reverse the size of this thing [01:09:47] to make it look like this right here. [01:09:50] And that would double the size of this. [01:09:52] And that would probably equal the same space that we're doing here. [01:09:55] And you'd still have that glass front running out here [01:09:58] that people could look at outside. [01:10:00] And that would be still building, but I don't think we need to redo the front [01:10:05] of this whole building. [01:10:06] That's a big dollar. [01:10:07] That's where we're going to do this whole archway thing, [01:10:10] and that's not bringing any money, any revenue, or any people in. [01:10:16] It's this pie, or this trapezoid, and turn it upside down, put it right here, [01:10:21] and then you can still go with this. [01:10:23] And we're probably building that at $200 a square foot, [01:10:26] and we're getting the product that we want. [01:10:30] Your thoughts, Evan? [01:10:32] I think it's good points. [01:10:35] I don't know what the cost estimates are related to bumping out these walls. [01:10:39] I will tell you, we agree. [01:10:40] It's on the next slide. [01:10:41] Wholeheartedly, you don't want to take this frontage and eliminate it [01:10:45] by adding a child care area. [01:10:47] You don't want people looking at the kids anyway. [01:10:51] Just to show you what it is, adding the child watch space, [01:10:54] currently it's right there. [01:10:56] We wouldn't recommend that. [01:10:57] Move it to the interior wall, have access from the hallway leading up [01:11:01] to the Group X room, and then this would be fitness with exterior views [01:11:07] and all of your treadmills, essentially, and your cardio equipment [01:11:10] where people are running and working out and actually looking [01:11:13] instead of laying on their back doing weights, [01:11:15] would be facing out to the outside. [01:11:18] A lot of the same concepts from what Chopper just mentioned. [01:11:24] I don't know if it's less expensive to remove this frontage, [01:11:27] which obviously has exterior view, and build out here, [01:11:30] than to remove this frontage and build out here. [01:11:33] I just don't know what the cost would be. [01:11:35] Isn't that something that Hennessey could tell us? [01:11:37] Right. [01:11:38] Is that something Kimley Horn looked into at all, [01:11:39] or they just wanted to redo the front? [01:11:40] Yeah, they can look into it, and Hennessey, as our construction manager, [01:11:42] can actually run the numbers. [01:11:44] That's redoing that whole front, [01:11:46] and that's not bringing us any money at all, [01:11:48] because it's beautiful right now. [01:11:49] It's beautiful. [01:11:50] Kimley Horn, all they were trying to do was they were trying to blend in [01:11:53] what the parking element was going to be, [01:11:55] and then they wanted an architectural statement, [01:11:57] which was a big glass wall there that none of us, [01:12:00] at least three or four of us, didn't really buy into [01:12:03] because we talked about heat gain, [01:12:05] talked about all those things that come with the sun coming up over there [01:12:09] or setting on that side. [01:12:13] Whether you kick that space on the back and leave that front, that's fine. [01:12:18] That was going to be an ongoing conversation anyway, [01:12:21] because as Chopper says, it's not a return on dollars to bring people in. [01:12:26] I agree with you on the child care. [01:12:28] I'd like to have them in such a way that they're not screaming [01:12:31] because they see their parents and cause disruption from that point, [01:12:36] and if you just kept it square, you'd still have an increased area. [01:12:41] But at the end of the day, that blue kick-out was to get square footage, [01:12:46] and at that point we gave the architects some luxury to give us some ideas, [01:12:52] but I don't know that we could have afforded that [01:12:55] because we cut it back to a million seven, [01:12:57] and we were already getting this. [01:12:59] Ms. Manns was like, how am I going to get back to that magic number [01:13:02] we gave her one night? [01:13:04] I think the figure we had from a text amount of months ago [01:13:07] was something like 1,700 square feet. [01:13:10] A commercial building of $200 a square foot, that would be $340,000, [01:13:14] and we'd have all the space, and we could even add some more space [01:13:17] if we wanted to, just based on the numbers. [01:13:20] But to redo that whole plot. [01:13:22] The interesting thing, too, is if we were doing that, [01:13:25] then if I'm not mistaken, all that light gray or whatever that is, [01:13:30] that is part of the locker rooms and bathrooms and all of that? [01:13:34] This is down here, yeah. [01:13:37] The point of us talking about this to begin with [01:13:40] was that we have an opportunity for people to come in and just use that [01:13:43] without having to come into the whole facility. [01:13:46] Now what we've done, if that's the case, [01:13:48] people would be coming in the back end of that. [01:13:51] Is that correct? [01:13:53] They would be able to access the back end of that building? [01:13:55] No, they'd have to go through the front door and just walk through the building. [01:13:57] We still recommend the entry lobby here. [01:13:59] There's an entry there. [01:14:00] They could go in there, but it's always locked or shut down. [01:14:03] It would just be an emergency exit back here. [01:14:06] The point's well taken. [01:14:08] It would definitely be worth looking at that, what it would take to expand. [01:14:12] Because if Chopper's right about the difference in the square footage cost, [01:14:17] you could have one hell of an increase in the size. [01:14:21] Some people would be asking me, [01:14:23] I don't know if you've looked recently, [01:14:25] but this whole side of the building is very boring. [01:14:29] It's just wall. [01:14:33] I'll go about right here, just in reference. [01:14:37] You have this space right here, and then it goes into the retention pond. [01:14:42] So we redesigned the retention pond. [01:14:53] A lot more square footage on that side of the building, too, [01:14:55] at $200 a square foot. [01:14:57] I'd definitely look at that. [01:15:00] back area by the existing health and fitness room, if it's indeed. [01:15:04] Well, the thing, there's plenty of room there for it. [01:15:08] I've actually shown Debbie this area, and actually, there's a circle here, [01:15:11] which actually you can bring the buses. There was a discussion of buses [01:15:15] four months ago, too. You can use this right here. And that was one [01:15:28] of the suggestions, that having these buses coming through the front here. [01:15:31] We already have that facility here. And we had one employee tell Debbie [01:15:36] and I, it was the employee access, or employee parking lot was here, [01:15:41] and then coming in there because of the bus. I direct employees to park [01:15:48] in the back, because we're limited on our parking spaces in the front. [01:15:51] Yeah, but I'm just saying right now, we're talking about that, [01:15:53] using... Having buses here. Yeah. And we're talking about a lot of [01:15:56] money. So what I personally would like to see, and I don't mean to [01:15:59] speak for anybody, I would like to see the cost. To say it's [01:16:03] 200 compared to 1,000, I'm not qualified. Unless Chopper spoke to builders, [01:16:08] I don't know how we could substantiate such a drastic savings right now, [01:16:14] but please speak to Hennessy. I'd like to see some architect photos of [01:16:20] what the entrance would look like if we did add it to the [01:16:22] front again. It's probably in the original report from Pimley-Horne. [01:16:26] In comparison to what the back would look like from, say, ground level, [01:16:30] if we were to expand the back out, so we can kind of get [01:16:32] a visual. We're talking $1.7 million, and if we could save a couple hundred [01:16:37] grand, it could use that for other things as well. [01:16:40] But I understand the concept of two different options for additional square [01:16:43] footage. I'd like a visual from ground level is what it's gonna look [01:16:46] like both ways as well. Also, with a comparison of potential cost savings [01:16:52] compared to adding the back, like Chopper's recommending. Yeah, and I [01:16:56] wanna keep that same glass look that we have already across there, [01:17:00] because that's what people want, work out there. You go to all of [01:17:03] them, a lot of them have the glass outlook. I mean, at Family Fitness, [01:17:07] they're all looking out in the parking lot, but they're still looking outside. [01:17:10] And it's a lot easier to look out of that because that glass is [01:17:12] on the east side, which isn't going to be as horrendously hot as it [01:17:17] would be on the west. Can we have something like that prepared then? [01:17:21] We can. Perfect. Because I think the front looks beautiful. I don't wanna [01:17:24] spend any more money redesigning the front just to put out [01:17:29] more square footage. The only thing I disagree with is that [01:17:33] if we're gonna save that, I would like to be able to connect [01:17:37] in some way the lower parking lot and the upper, [01:17:40] because right now we're making ADA handicapped people get out of their car [01:17:45] with no ability to be [01:17:49] appreciated and come down that sidewalk. How that ever got designed in the [01:17:55] first place, I can't go back and speak to it, but [01:17:58] it's the ability to... [01:18:01] Because I'm being told that sometimes people come up and see that that [01:18:04] upper lot's full, and then they just keep going around the circle and they [01:18:09] leave. They don't even go in. I agree. Because they don't know down... [01:18:13] And they've gone out, and they finally, instead of spending [01:18:18] two grand to repaint the old pump house, they actually tore it out. [01:18:24] So it's finally gone, and you've relocated some piping there in the front. [01:18:28] I just think that if you're gonna leave that front, [01:18:32] that we need to be able to make some additional handicapped spaces better. [01:18:36] I think a redesign of this entrance right here would give us that. [01:18:42] But you have to let people know how to get to the [01:18:47] handicapped zone down there. Well, as I said, we have to redesign that [01:18:51] entrance to get in that way. Okay, we are on 11 minutes. [01:18:57] So I'm gonna move us pretty quickly. [01:19:00] It's pretty self explanatory. You can't do much with the pools in terms [01:19:03] of the physical pools. Updating the FF&E on the deck. [01:19:07] Minor equipment should be looked at every year and have a plan to [01:19:11] replace every one to two years. Major equipment, we look at a four [01:19:15] to five year addition schedule, typically, is what we recommend. We haven't [01:19:19] recommended pricing specific to any major increases in this, no replacement [01:19:25] of slides, etc. But we do recommend that you look for every four [01:19:28] to five years, something that's gonna change the pool deck in a major [01:19:32] way, other than the convenience that may come from... The convenience may [01:19:35] come from fun brellas and new patio chairs and whatnot. [01:19:41] And then finally, we talked about this before, opening the skate park. [01:19:44] What happens to the skate park, I know is up for debate. [01:19:47] It's not a revenue generating operation right now. In fact, it costs a [01:19:51] couple of thousand dollars because of staff and equipment repairs. [01:19:55] But if you're gonna keep it as a skate park, you should look [01:19:58] at, especially an open skate park, at durability and some options that [01:20:03] are gonna differentiate yourself. It's still an important asset, right? [01:20:08] It's adventure, it's adventure sports and it's active recreation for kids [01:20:12] who aren't looking to play basketball, and that's important in a lot [01:20:15] of communities. But this is the skate park of Tampa, I'm sure on [01:20:19] the left, you probably recognize that. It's a great example of a really [01:20:22] durable set of finishes, although obviously it's a very different operation. [01:20:27] The two images on the right are pump parks is what they're called, [01:20:31] and this one down here in particular is... This was actually built in [01:20:35] Brooklyn, but it is a bike, skate and blade accessible version. And it's [01:20:45] different, it's a little bit less risky, if you will, but still provide [01:20:49] some of the options. And we haven't recommended any additions to this [01:20:55] or any major changes within the budget, other than opening what you currently [01:20:58] have and keeping an eye on the future for that. If it would [01:21:01] get the bike mafia to get out of the downtown and go up there [01:21:07] and play there instead of trying to skid across the benches. They're all [01:21:12] over the skate park right now, because it is open. [01:21:15] That explains why I haven't seen so many of them downtown lately. [01:21:18] We opened it. Okay. Is there a possibility of redoing that and relocating [01:21:23] it, and maybe where the skate... And this gets back to Chopper with his [01:21:28] pointer and all of us wanting to think outside the box, [01:21:31] but making that where the skate park is, make that a pass through or parking [01:21:38] to get you pass through, to get you to the bus loop in [01:21:40] the back, instead of trying to tell somebody to come down to Indiana [01:21:43] and turn by. I'm just trying to figure out a way, [01:21:46] but also, whatever you want to do with the skate park, [01:21:51] please do it. I don't want to discuss it. I don't want to [01:21:54] jack with it. I've had my feelings about it, but at the end [01:21:58] of the day, my life's too short on council to want to... [01:22:02] It's not an amenity that I'm plus or minus about anymore. [01:22:06] Just give them a place to be, and if that means we have [01:22:08] to redesign a little bit, fine. I just am at a point where [01:22:14] this facility needs to have a little bit more of a better flow [01:22:17] to it, especially when we have events, and if that means that we [01:22:21] have to do that Brooklyn look or whatever, then let's engage that. [01:22:29] Can we talk about your revenue numbers? [01:22:30] Yeah, we're getting there right now. [01:22:31] Good. [01:22:33] The impact of these things is that you're going to open up some [01:22:37] new revenue streams, increase some existing revenue streams. We've modeled [01:22:40] it out on this summary. You're going to see the 2015 as it [01:22:44] actually exists, and then what we've modeled here for year one, year two, [01:22:50] and year three, the primary difference is a reallocation of revenues into [01:22:55] areas that are more specific and tracked to the area. Right now, [01:22:58] most of your program revenue is just lumped into uncategorized and facility [01:23:02] revenues and percentage of class. We've modeled something that's much more [01:23:05] specifically related to registration for specific programs, but the biggest [01:23:11] driver overall is membership. If there's a question about membership, [01:23:15] this may be the very best stat for you to think of in [01:23:18] terms of the relative conservativeness of our forecast. The number of members [01:23:26] that we are projecting for you in year one is 1.4% of [01:23:32] the 10 minute drive time population. Everyone that lives within 10 minutes, [01:23:36] you're capturing less than 1.5% of those people, and by year three, [01:23:40] it's still less than 2%. It's 1.9% of the people that live within [01:23:45] 10 minutes, and we think that the pricing, the convenience, the additions [01:23:48] to the facility, the attractiveness of what you're going to be offering, [01:23:51] the marketing, all of those things, as I said, come together to create [01:23:54] these opportunities. It performs what we think is safe and responsible. [01:24:01] It is certainly not an overextension, and if anything, we've been conservative [01:24:06] on those numbers. When you break down each of those, I showed you basketball [01:24:10] as an example earlier. I'll show you membership here in a moment, [01:24:13] but they all have their revenues and their direct expenses. This first box [01:24:17] is the cost of goods sold. You'll notice that historically, you've attributed [01:24:21] zero cost of goods sold. Everything has been considered an overhead expense, [01:24:25] and the allocation of cost of goods sold so that you are making [01:24:28] those real time adjustments is modeled within this so that when you exceed [01:24:32] your membership numbers, you exceed the staffing numbers that you've got, [01:24:36] etc. The costs below that are the reallocation of the existing overhead [01:24:43] expenses. A lot of those come up here, but what you'll see is that [01:24:46] we actually think that you overspent in expenses last year relative to what [01:24:50] you should be doing, and then that number is going to drop down in [01:24:53] terms of your total expenses with a combination of the reallocation here [01:24:57] and some cost efficiencies here that should be realized. So the full details [01:25:01] are in there. You will have your... By year two and year three, [01:25:05] your overhead expenses, or your total expenses rather, will get back up to [01:25:09] where they are now if there aren't major changes in the way that [01:25:11] things are allocated. On the membership side, this is an example. [01:25:15] So everything on the top here is the area revenue. On your actual [01:25:18] sheet, this is yellow, so it breaks it up a bit better, [01:25:21] but what you'll see is the pricing that we've recommended for memberships [01:25:24] and the prices that we've recommended for [01:25:26] your guest passes. And I mentioned before that you've got this last line [01:25:31] here, which is a reduction of revenue. It's a 15% reduction of revenue [01:25:35] as a discount for your residents and if you wanna offer any scholarships. [01:25:39] So that's a target that we commonly use as a target within our [01:25:42] facilities. And what you're gonna see is that year one to year two [01:25:45] creates a significant jump. The primary reason for that is that what you [01:25:49] can't see here is that in between these two lines, if you were [01:25:52] to open up the back end of our spreadsheet, is the time that [01:25:55] it takes to get people to register. So you'll have only a [01:25:59] percentage of your year one end of year members that are members paying [01:26:05] in the first month of this. You may only have 40% of your [01:26:08] total members and then it goes to 50% and then you're gonna see [01:26:11] a big spike in January, etc. So it will build this total number [01:26:14] of members. So the fact that there's limited growth here, but major revenue [01:26:18] growth here is just representative of the fact that this isn't a [01:26:21] full year of 12 months at 450 people for Silver Sneakers, it's... [01:26:26] Well, actually Silver Sneakers is a bad example. For adult members, [01:26:29] it's not a full year for these 300 people. That's the total number [01:26:33] of sales is 300, but it doesn't actually jump from 300 to 468. [01:26:38] The reality is that the year one end would be much higher than [01:26:42] 300. So that's how it builds in. You'll also notice then, [01:26:46] again, I showed it to you on basketball, but the cost of goods [01:26:48] sold are all baked into here. Difference between basketball and membership, [01:26:51] we're assuming that your membership director is a full time staff member [01:26:56] already. That's part of the core of what you do. You don't need [01:26:59] to add a position or add incentives to that. So that should be [01:27:01] covered under what you're currently doing. But we did recommend that you [01:27:04] add fitness floor staff. If you're gonna have a bigger fitness floor and [01:27:06] you're gonna have more people, you need to be inviting for new members [01:27:09] to come in and feel like they've got a safe place to work [01:27:12] out where they can ask questions, where they can be greeted, [01:27:14] where you can have somebody on the floor. And so we build that [01:27:16] in as the cost of goods sold. Ultimately, that means when your revenue [01:27:19] increases, so do your cost of goods, but it makes more employees on [01:27:24] site, it makes more full time equivalents, and it creates a better customer [01:27:28] experience. We've given you the full operating expenses. Sorry, I'm going [01:27:31] really quickly here. I just wanna get to the point where we've talked [01:27:34] about all this before. Any final questions? [01:27:37] This is just an example. These are the aquatics breakdown. But what we've [01:27:39] done is we've looked at the historic numbers, we've looked at the [01:27:43] standard increases, if you keep things [01:27:47] in check, and just your chemicals are gonna cost a little bit [01:27:50] more every year, so there's a minor increase. So we've modeled incremental [01:27:53] growth over your operating expenses. These are the operating expenses pulled [01:27:58] out of aquatics. We also met with everyone, [01:28:01] Donna, Elaine, everyone who's involved with [01:28:06] tracking the overhead expenses, and we've looked at what should be there, [01:28:11] what may be an anomaly in the first year or the recent [01:28:14] years or whatever it may be. So we've adjusted it with [01:28:17] their expectations as well. Overall, here's the big message. From a financial [01:28:21] perspective, this is as much as anything about reversing trends. The last [01:28:25] three years have been a downward spiral in terms of [01:28:29] your performance because your expenses have increased significantly. It's important [01:28:33] to note when we think about our model that we aren't artificially just [01:28:37] chopping expenses. We're giving you a revenue generation model and considering [01:28:41] the fact that your expenses are going to generally stabilize. If, [01:28:46] in fact, there were more expenses in the last couple of years than [01:28:49] there should have been, and your overhead expenses and your cost of goods [01:28:53] sold for what you were doing should have been more in line with [01:28:56] that because your revenue didn't increase, it decreased a little bit, [01:28:58] but your expenses skyrocketed, then what that means is that there's an [01:29:01] opportunity to perform even better than this blue line, this net operating [01:29:06] income. If your revenues can increase and your expenses are higher than [01:29:09] they should be and you can create the efficiencies here without sacrificing [01:29:13] it, that means that this blue line gets better. But as it is, [01:29:16] we expect general stabilization in this model. If you do these... [01:29:20] If you take on these initiatives, if you do these things on the [01:29:22] operational side, if you make facility improvements to increase your space, [01:29:26] add Child Watch, et cetera, you will be able to get to a [01:29:29] point where you're stabilized and you are right back in line with the [01:29:32] numbers that you used to see that were much more, [01:29:36] I don't wanna say appealing, because you're spending a lot of money, [01:29:38] but the reality is that's what these facilities are on the municipal side. [01:29:42] So if you look at the cost recovery, last year you were at [01:29:44] 34%, we expect an immediate jump in that as soon as you start [01:29:48] implementing this, and ultimately you'll be in the low to mid 50s [01:29:51] at stabilization if you don't find cost efficiencies within this model. [01:29:56] And that's what all of these look to do. So the summary... [01:30:00] It's not just about the financials, right? [01:30:02] It's about a number of things. [01:30:03] So when you look at it in our report, we've outlined these. [01:30:06] But revenues increased by more than a quarter of a million dollars from where you are in 2015 [01:30:10] to where you will be in the third year after implementing this. [01:30:13] Your expenses stabilized, as I just mentioned. [01:30:15] Net income increases significantly. [01:30:17] Cost recovery increases significantly. [01:30:20] I think from a service perspective, you've got two important metrics here, right? [01:30:23] Number one, you're going to serve more people. [01:30:25] In terms of members, we're essentially doubling your total membership [01:30:28] without creating this massive marketing push [01:30:31] or without assuming that any other facilities are going to go out of business. [01:30:34] It's just a better, more responsible way of telling people what you have, servicing them better, [01:30:39] keeping fitness floor on the staff during your peak times, right? [01:30:42] All of these things from an operational perspective reflected in that model [01:30:45] mean that you're going to have a better experience [01:30:47] and you are going to serve your community more effectively. [01:30:50] And when you do that through members, it also means that you're going to do it through employment. [01:30:54] So I don't know how you model your FTEs. [01:30:57] The way that we did it when we called FTEs, [01:30:59] we just said if it's an average of $10 per person, [01:31:03] not counting the overhead expenses with it, [01:31:06] but if it's an average of $10 per person and they're working full-time, [01:31:09] so that's $20,800, [01:31:11] your current staff salaries would give you about 25 full-time equivalents. [01:31:16] And with these changes three years from now, using that same math, [01:31:19] so however you do it will change it a little bit, [01:31:22] but that gives you 31. [01:31:24] It's more than a 20% increase in full-time people employed through this facility [01:31:28] while you're serving more people, [01:31:30] while you're doing more financially from a financial sustainability perspective [01:31:34] and a responsibility perspective. [01:31:36] So it's a win, right? [01:31:38] We believe that these changes, as we've outlined them, [01:31:40] yield better performance, better service, and better employment within New Port Richey. [01:31:48] That's a good proposition to consider. [01:31:50] It's a reflection of the city as a whole as well. [01:31:54] Any final questions? [01:31:56] Yeah, I think it's important to note, I wish we would have got to this first. [01:31:59] I think just a recommendation is you start with these numbers like that. [01:32:03] Also on your cover page, you need to add a couple of minor things I'll talk to you about, [01:32:09] but I think we collectively as a body need to understand [01:32:14] that we're looking at a year to complete these improvements, [01:32:18] and then you're looking at a two- to a three-year return to this 54% model. [01:32:27] So that's a three- or four-year time. [01:32:29] So for every day we delay, we delay getting to that point, number one. [01:32:35] Number two is that I think what you meant to say in number three [01:32:39] was that our net increase income would go from 598 to 831, [01:32:46] which would be that half a million dollars that you were talking about. [01:32:50] And 54% as a cost recovery, [01:32:55] everybody wants to talk about return on investment and all that kind of stuff. [01:33:00] Obviously, we're having to go back 10 years later to reinvest into a facility [01:33:04] that the way it was designed isn't the way it's implemented in the community today, or the needs. [01:33:11] So obviously, it's like buying a house and doing the flip, [01:33:16] taking out the interior walls and doing some other things to make the efficiencies better. [01:33:20] It's going to cost me some money on the front end. [01:33:25] So overall, from an economic standpoint, [01:33:30] it's how best do we want to serve our community. [01:33:34] And we can't shutter it. That's irresponsible.

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3. 3Adjournment