HomeMy WebLinkAboutPDAC - FY 2013-14 Annual ReportAnnual Report 2013/2014
Palm Desert Aquatic Center
September 2, 2014
YMCA Contract Expenses:
In year -three the total expended by the YMCA relating to operations services was $986,752.59. The largest
expense incurred from the YMCA is largely staffing costs (i.e. lifeguards, swim instructors, concessions, etc.).
In addition to staffing budgets the YMCA has budgets for, food & beverage, janitorial, advertising, retail &
program materials, and other ancillary costs surrounding the operations of the facility. In addition the YMCA
charges a monthly management fee for services rendered at the facility. Below is a breakdown of costs
associated with the YMCA's operations contract.
2%
Refining Operations and Maintenance:
• Staffing Costs:
$736,780.27
• Management Fee:
$132,000.00
• Other Expenses:
$39,375.91
• Food & Beverage:
$34,198.76
• Insurance: 515,600.00
• Janitorial: $8,761.36
• Advertising: $13,965.66
• Program Supplies:
$6,076.63
During the first year of operations staff contracted with two maintenance contractors, one for the mechanical
system and a second for day-to-day cleaning. It was apparent early on that there would be some benefit to hiring
our own maintenance person for day-to-day cleaning and minor repairs of the facility. In year two of operations
staff budgeted and hired a Facility Operations Supervisor at a cost of almost half of the annual contracted rate
with our service contractor. Under the oversight of the Facility Operations Supervisor, Aquatic Manager, and
Knorr Systems the maintenance of the aquatic center has been excellent. We are able to provide better service at
a reduced cost to the City.
A common suggestion throughout the first year of operation was to add shaded areas to the pool deck. That was
accomplished with the addition of three large shade structures, one at the concessions area and two in the center
of the aquatic center deck space. Picnic tables were placed under some of the shaded areas for additional
seating. The shade and tables were well used and additional umbrellas were added as well.
Contract Maintenance/Services:
Staff has been very happy with the continued service provided By Knorr Systems, Inc. Our base contract
provides for monthly servicing of equipment as well as emergency repair assistance billable based on time and
materials. Staff is noticing an increase in repairs and maintenance necessary which is not a total surprise in a
facility such as the PDAC. Warranties are beginning to expire and staff is developing a 5-year capital
Page 7 of 10
Annual Report 2013/2014
Palm Desert Aquatic Center
September 2, 2014
replacement plan for the facility. Staff attempts to handle as many of the repairs as possible with PDAC
staffing however does need the expertise of our third party contractor occasionally.
Staff was able to keep security services to a minimum in year -three of operations. Staff utilized security during
the summer of 2013, on a Thursday — Sunday schedule and took a wait -and -see approach to the 2014 summer.
Fortunately staff did not notice any major evidence of after hour use. Security services can range from $3,000-
$4,000 / month and is one area staff tries to minimize use if possible.
Below is a breakdown of costs associated to contract maintenance and/or services:
S4,818.34
Utility Expenses:
• Knorr Systems Inc.
(Chemicals): 568,320.98
■ Security: $8,151.00
• Knorr Systems Inc.
(Maintenance):
$48,480.65
■ Other Maintenance Costs:
$4,818.34
Total expenses related to utilities for the third year were $92,627.30 which represents about a 5% increase from
the prior year. The vast majority 74% are attributed to electricity which is fairly common for an aquatic facility.
Below please fmd a breakdown of utility costs associated with the PDAC.
$3,061.67
• Southern California
Edison:
■ The Gas Company:
■ Coachella Valley Water
District:
• Time Warner Cable
(Telephone):
Page 8 of 10
Annual Report 2013/2014
Palm Desert Aquatic Center
September 2, 2014
Use Statistics:
The front desk of the PDAC uses a daily counter or "clicks" which represents the number of daily facility users.
This data does not include people who enter but do not use the facility such as, parents entering to pickup/drop
off children, public entering to look at the facility, tours of the facility, and facility staff. Year three had nearly
107,000 people come through the doors to use the facility.
Zip Codes:
Zip code numbers have been consistently collected all year. The chart below is a good indication of the pattern
of users we have seen at the facility. We have had patrons from as far away as British Columbia, England,
Switzerland, South Africa, New Zealand, France and Australia.
July 2012-June 2013 Zip Code Tallies
July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
92201 551 36 295 42 39 39 15 28 391 306 294 719 2755
92203 836 686 298 83 42 35 27 66 505 321 435 486 3820
92210 71 136 25 54 56 40 21 72 441 147 209 323 1595
92211 770 744 361 185 189 153 149 285 914 524 771 749 5794
92234 512 516 205 51 63 39 170 52 402 212 316 273 2811
92236 528 514 125 5 11 13 0 0 366 19 329 169 2079
92241 232 171 74 59 11 17 4 9 215 32 212 74 1110
92253 833 593 362 251 302 164 191 274 772 545 813 1398 6498
92260 1599 1529 810 321 402 283 402 695 1398 1084 1544 1506 11573
92262 99 327 143 70 83 92 68 123 430 255 216 227 2133
92270 184 207 72 46 95 63 103 108 487 358 392 474 2589
Total 6215 5459 2770 1167 1293 938 1150 1712 6321 3803 5531 6398 42757
Surprises Alons the Wav:
There were a few surprises along the way both beneficial as well as challenging. Nothing we could not handle
with a bit of effort, but unforeseen none the less.
Hiring a facility supervisor was not a surprise, it was planned. But the employee's performance, who
took the position, was a surprise. He worked harder and performed at a level beyond what was
expected. The facility is fortunate to have him on staff.
The annual pool maintenance resulted in a shut down that took longer than expected. Because it was the
first annual maintenance required learning was the result and that learning will benefit the aquatic center
for years to come.
A few items required repair or replacement sooner than expected. For instance, the air conditioner
compressor had to be replaced in concessions. A number of the chairs and chaise lounges required fabric
replacement. The umbrellas did not hold up well in the wind.
Page 9 of 10
Annual Report 2013/2014
Palm Desert Aquatic Center
September 2, 2014
We experienced heavy use of the facility in order to achieve the nearly 60% revenue return in the third
year of operation. This use was witnessed not only as bodies in the water but in general wear and tear of
the facility. Staff is looking creatively at ways to capture revenue which are not exceedingly taxing on
the facility.
Community Feedback:
This year we have a permanent counter out front, providing the community a chance to give their feedback. It
is very exciting that 95% of those forms have come back positive. The forms that do have suggestions other
than praise, usually had to do with equipment or facilities items. These included statements such as lack of
lounge chairs, lack of working umbrellas, or a shower not working.
There were a few suggestions asking for additional cleaning detail in the locker rooms. Staff has contracted
with a janitorial service to assist with the burden of the cleaning required.
Here are a few examples of praise recieved:
"You have an awesome pool and friendly staff."
"This is a great facility, I may consider moving closer."
"I loved the aquatic center! It was Fun!"
"Love the water aerobics!"
"Here from Scotland. Fantastic place, clean, friendly, amazing value for the money"
"Lifeguards and front desk staff always so nice and welcoming."
Goals for 2014/2015 Season:
• Expand Health and Wellness Offerings, Adaptive Aquatic Programming, and Silver Sneakers and other
medical insurance based programs.
• Become a training center for swim and fitness programming, American Red Cross Classes, Water
Exercise certifications, etc.
• Host one large competitive swim event.
• Continue to assess data and feedback which would assist in developing a future expansion plan for the
facility.
Conclusion:
Year three has been an exciting year at the PDAC, and has also proved successful in achieving our 60% cost
recovery goal several years in advance of initial projections. In achieving our financial goals we have also
observed that high recovery goals can be very strenuous on the facilities mechanical systems. Staff is hopeful
that by exploring creative revenue strategies (i.e. land based fitness, special events, retail sales, or sponsorships)
the intensity of the use could spread to a more sustainable level. This will be a main area of focus for year four
and beyond.
Page 10 of 10
diaamia Aapthie 4;f
2013/2014 Annual Report
September 2, 2014
Presented by:
Ryan Stendell, Senior Management Analyst
Karen Creasey Aquatics Manager, YMCA of the Desert
Annual Report 2013/2014
Palm Desert Aquatic Center
September 2, 2014
Executive Summary:
To say that we've had another successful year of operations at the Palm Desert Aquatic Center (PDAC) would
be an understatement. June 30th 2014 marked the conclusion of the third full year of operations at the PDAC,
and has proven to be an important year. Total expenses came in at $1,192,970.91, with a revenue total of
$714,373.94, representing a recovery rate of 60%. The recovery rate of 60% was initially targeted by the
Ballard King Report in year five of the pre -opening operations report. Meeting the 60% cost recovery goals are
important in minimizing the impact to the City's general fund, which covers the shortfall in operations
expenses. Staff has achieved the 60% through not only through increasing revenues, but also keeping close
watch on operational expenses throughout the year.
Via this report, staff will provide a year over year comparison of both revenues and expenses, and also provide
information related to ongoing management efforts by the Family YMCA of the Desert. We will also discuss
some of the exciting plans and ideas for continuing to better ourselves at the Palm Desert Aquatic Center.
PALM DESERT AQUATIC CENTER
EXECUTIVE SUMMARY
FY 2013-14
MONTH I FY12/13 I FY 12/13
EXPENSES INCOME
FY 13/14 I FY 13114 I MONTHLY
EXPENSES INCOME +/_
JULY $ 132,938.86 $ 111,118.56 $ 140,369.66 $ 118,580.22 S (21,78944)
AUGUST $ 134,009.69 $ 78,563.24 $ 119,261.33 $ 80,358.99 S (38,902.34)
SEPTEMBER $ 100,475.72 $ 49,344.10 S 93,400.56 $ 39,673.73 'W (53.726.83)
OCTOBER $ 97,518.77 $ 28,451.37 $ 80,438.30 S 32,260.00 5 (48,178.30)
NOVEMBER $ 81,866.18 $ 25,990.04 $ 80,892.67 $ 23,94200 5 (56,950.67)
DECEMBER $ 73,809.15 $ 18,121.84 $ 74,738.49 $ 21,986.00 5 (52,752.49)
JANUARY S 79,507.66 S 20,676.84 $ 85,471.15 $ 33,766.00 5 (51.705.15)
FEBRUARY $ 74,476.37 S 27,346.59 $ 90,726.30 $ 31,685.00 S (59,041.30)
MARCH $ 88,776.76 S 64,537.40 $ 91,528.00 $ 50,837.00 $ (40,691.00)
APRIL S 92,346.30 S 66,215.47 S 92,934.02 S 69,170.00 $ (23.764 02)
MAY $ 98,575.52 $ 81,687.18 $ 105,342.14 $ 87,313.00 $ (18.029.14)
JUNE $ 151,362.22 S 131,983.02 S 137,868.29 S 124,802.00 S (13,066.29)
TOTAL S 1.205.661.20 S 703.035.65 I S 1.192.970.91 S 714.373.94 S 1478.596.971(
Page 2 of 10
Annual Report 2013/2014
Palm Desert Aquatic Center
September 2, 2014
Background:
The Palm Desert Aquatics Center has just completed its third full year of operations. In the beginning, the goal
of this project was to provide aquatic opportunities for the community, while attempting to recover a portion of
the cost of daily operations. Initial projections showed the possibility of reaching a 40% revenue return during
the first year and 55% within the first 5 years. It was projected that these percentages would be achieved in
part by offering a variety of activities, promoting health, fitness, and competition, to participants of various
ages. The first year required the creation all operations, programs and schedules from scratch. Securing the
YMCA contract, hiring staff, equipment purchase, adjustments to procedures, procurement of supplies,
marketing, pricing, are just a few examples.
2"d Year Improvements:
The second year of operations focused on refining operations, building individual and team based programs,
and expanding recreational opportunities.
3rd Year Improvements:
The third year of operations focused on expanding individual and team based programs, increasing recreational
opportunities and additional refining of operations and maintenance
Overview:
Individual and Team Based Programs:
Throughout the third year a variety of programs were developed, marketed to specific user groups, and
implemented. The programming results were amazing. A few examples of program improvements are:
Swim Lessons: 1st year: Created American Red Cross based programs and recruited instructors.
2nd year: 43% revenue increase in swim lesson program due to increased registrations.
3rd year: 5 % revenue increase in swim lesson program over the second year.
Water Aerobics: 1st year: Programs offered 3 times a week with slowly increasing populations.
2nd year: Programs increased nearly 80%. Classes were offered 6 days a week both
morning and evening, 11 classes total. Some classes were 30 participants strong.
3rd year: Programs increased 42% Classes were offered 6 days a week both morning and
evening, 11 classes total. Some classes were 45 participants strong.
Land Based Exercise: 1st year: No land based programs were offered
2'd year: No land based programs were offered but we received many requests.
3rd year: Began offering land based programming, Yoga, Silver Sneakers, and Zumba.
5 classes per week total and 439 visits.
Club Swim Team: 1st year: Small swim team (less than 10 swimmers) but building throughout the year.
2nd year: Large swim team (over 100 swimmers) renting 6-8 lanes for 3 hours at a time.
3rd year: Continue the success of the large team renting 6-8 lanes for 3-3 'h hours at a
time weekday afternoons and 2 long course lanes 2 weekdays in the morning.
1st year: Xavier began using PDAC as their home pool for both Water Polo and swim.
2°d year: Xavier rented practice space 5 days a week and call PDAC their home pool.
3rd year: Xavier continued to rent space and call PDAC their home pool.
1st year: Reached out to groups to rent space. Had a few consistently using by year end.
2nd year: Increased space and lane rentals over year one by 48%
3rd year: Increased space and lane rentals over year two by 19%
1st year: No safety classes offered deck side.
2nd year: Lifeguard, First Aid, and CPR classes offered at PDAC year around.
3rd year: Lifeguard, First Aid, CPR, and Basic Water Safety classes offered at PDAC
Page 3 of 10
High School Swim:
Lane and Space Use
Safety classes:
Annual Report 2013/2014
Palm Desert Aquatic Center
September 2, 2014
Field trips:
year around.
15t year: Had a few field trips from local schools participate.
2nd year: Numerous schools with hundreds of kids participated. As well as many outside
groups - churches, sports teams, boy & girl scouts, summer camps, homework club,
Desert Arc and more.
3ra year: Numerous schools and groups with hundreds of kids participated. We
experience an increase in year three of 50% over year two.
Expanding Recreational Opportunities
The retention rate and expansion of group rentals has been positive. A few of the groups retained and expanded
included scuba, swim instruction, water polo, swim teams, school trips, lifeguard trainings, and fitness camps in
year two. Year three expanded as well into additional user groups over year two that included physical therapy,
CSUSB, and Tritons Masters
Community and corporate parties are very popular but we have space to do more of them. Full facility rentals
are an area we look forward to expanding. A few full facility users in year three were Eisenhower, Kaiser
Restaurants, Desert Arc and the Swim to Win foundation. During May (National Water Safety Month) Swim to
Win partnered with the YMCA and the city of Palm Desert to host the largest full facility event of the year.
Over 900 people were taught swim skills, learned water safety basics, and met and swam with 9 USA
Olympiads.
Lap swim continues to gain in popularity. There has been a 48% increase in lap swim pass use from year two to
year three. Mornings the pool is set into long course (50 meter) and afternoons it is short course (25 yard) so
there is something for everyone. Staff continues to assess space needs and availability so lap swim can remain a
consistent all hours offering.
Staff has contracted with a marketing firm for another 12 month period in an effort to continue to provide the
facility with a sharp professional image. A complete 12 month marketing plan is being drafted and
implemented.
Safety:
The Palm Desert Aquatic Center continues to hold an outstanding safety record for its size and the number of
customers who come through the gates on a daily basis.
Constant vigilance are the key words to effective lifeguarding and a high safety record — Never leaving a pool
unattended when patrons are present, effective zone scanning, supervisory oversight, and being rescue ready
and highly alert at all times are some of the ways we have been effective in keeping people safe and out of
harm's way.
Selecting qualified staff is an important element towards the safety plan. Strong swim skills are required and
many who are hired are swim team members and/or water polo players at the high school or college level. All
our lifeguards hold American Red Cross certifications in lifeguarding, CPR and First -Aid and participate in
frequent in-service trainings and planned and/or spontaneous safety drills.
Daily swim tests were required and conducted for all patrons under the age of 18 who desired to use the diving
boards or swim in the deep water. These swim tests were highly effective and greatly reduced the need for
lifeguards to enter the water.
Page 4of10
Annual Report 2013/2014
Palm Desert Aquatic Center
September 2, 2014
For a facility this size our rescue and first -aid statistics are outstanding. Over the third year of operations we
performed only a few water rescues that required a lifeguard to enter the water and assist a patron to the side.
No drownings or near drownings occurred.
First -Aid incidences were handled professionally and thoroughly. Most commonly with a band aid and/or an
ice pack. Reporting was done and EMS was called when necessary. An effective emergency action plan, First -
Aid and communication equipment, and well trained staff played an important part in our success. The
lifeguards are outfitted with easily recognized uniforms as well as whistles and rescue tubes. They participated
in monthly mandatory trainings as well as spontaneous drills and practice. The safety equipment such as the
radios donated by the City of Palm Desert, a fully stocked medic bag, backboards, and an AED allow for a
professional response in all scenarios.
Riverside County Health and California's Department of Safety and Health perform inspections of the facility
periodically throughout the year. Proudly, in the third year, the Aquatic Center has passed all inspections and
complied with all suggested improvements.
Revenues:
At the conclusion of the third year of operations staff is extremely pleased to have been able to again surpass
projections of the Ballard King Report and also previous year's revenue totals. In total the facility was able to
take in $714,373.94 in total revenue which is broken down by income category in the below chart. Programs
and facility rentals have become a very steady source of income for the facility.
Retail Sales,
$17,848.00
Facility Rentals,
5101,260.00
Food &
Beverage,
S82,017,00
The highest volume of revenue came in the daily admission category followed by programs and facility rentals.
Recreation swimmers were plentiful from the time the gates were opened at the facility, while others took
longer to develop. Staff has seen a progressive increase in daily lap swimmers and guests using the facility in a
fitness function. The YMCA will continue to expand on programming opportunities for these users, especially
in the traditionally slow winter months.
Monthly Revenues:
Below is a snapshot showing the monthly revenue collection for year one at the aquatic center. The highest
months revenue was $124,802.00 (June), and the lowest month was $21,986.00 (December). This is a
somewhat predictable model based on the weather and the predominant recreational swimmers. A major area of
Page 5 of 10
Annual Report 2013/2014
Palm Desert Aquatic Center
September 2, 2014
focus in our marketing strategy is to attract more off season (October -March) use, as well as summer time
recreational swimmers. YMCA staff has done a good job year over year increasing our winter revenues which
has allowed us to achieve the 60% cost recovery.
5140,000.00
$120,000.00
$100,000.00
$80,000.00
$60,000.00
$40,000.00
$20,000.00
$0.00
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Expenditures:
V-9 �aJ >Jce
The total operations budget for year -three was approved by the City Council in the amount of $1,310,134.00
Total expenditures for the year totaled $1,192,970.91, which represents approximately 91% of the approved
budget. Expenditures for the facility are broken into the following categories; YMCA expenses, contract
maintenance, and utility expenses. Total expenditures were kept below the total approved bottom line through
careful management of our allotted funds. Below please find a summarization of all expenditures of the facility.
• YMCA Operations Costs
■ Contract Maintenance &
Chemicals
r Utilities
Page 6 of 10
CITY OF PALM DESERT
CITY MANAGER'S OFFICE
STAFF REPORT
REQUEST: RECEIVE AND FILE THE 2013/2014 ANNUAL REPORT FOR THE
PALM DESERT AQUATIC CENTER.
SUBMITTED BY: Ryan Stendell, Senior Management Analyst
DATE: September 11, 2014
CONTENTS: 2013/2014 PDAC Annual Report
Recommendation
By Minute Motion, receive and file the 2013/2014 annual report for the Palm Desert
Aquatic Center.
Discussion:
Attached please find the annual report for the third year of operations at the Palm
Desert Aquatic Center. Staff is pleased with reaching our targeted 60% recovery rate in
year three of operations. Original projections targeted 60% within the first five years of
operations. The Parks and Recreation Commission reviewed the attached report at its
September meeting, and congratulated the Aquatic Center staff on a job well done.
Staff will continue to update the Council on the operations at the Aquatic Center.
Submitted By:
Ryan Stendell
Senior Management Analyst
Ape• val:
Jo 1' M. Wohlmuth
Manager
Review -and Concur:
Paul Gibson, Finance Director
CITY COUNCIL ACTION
APPROVED
RECEIVED
OTHE
fe.sce-ivect > Fil..e
MEETING DATE q' f I-
AYES:, Aturi+K)'oai kAl ber1i anna r
NOES. N 9hn
ABSENT: Notp
ABSTAIN: _.�l2f1P
VERIFIED BY: ADO din
Original on File with City Clerk's Office
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