9.2. SR 06-18-2018 EOty1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 9.2
Agenda Section Meeting Date Prepared by
Work Session June 18, 2018 Rich Czech,Arena Manager
Item Description Reviewed by
Ballard*King Financial Analyses Cal Portner, City Administrator
Reviewed by
Action Requested
Review Ballard*King Financial Analysis Report
Background/Discussion
The Ice Arena Commission requested a financial analysis of the three recreation facility improvements
the Council has considered- Community Center Project,Multi-purpose Recreational Facility Project, and
Ice Arena Project-in order to get an idea of the cost/revenue impacts of each project.
Ballard*King&Associates have completed their report and the Arena Commission review was on June
12.
Financial Impact
N/A
Attachments
■ Ballard*King Financial Analysis Report
POWERED 6T
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b BAL ARI)*KING
l� & ASSOCIATES LTD
Recreation Facility Planning and Operation Consultants
Operations Analysis
Background
The operations analysis represents a conservative approach to estimating expenses and revenues
and was completed based on the best information available and a basic understanding of the
project. Fees and charges utilized for this study reflect a philosophy designed to meet a
reasonable cost recovery rate and future operations cost and are subject to review, change, and
approval by the City. There is no guarantee that the expense and revenue projections outlined in
the operations analysis will be met as there are many variables that affect such estimates that
either cannot be accurately measured or are subject to change during the actual budgetary
process or partnership.
Expenditures
Expenditures have been formulated on the costs that were designated by Ballard*King and
Associates to be included in the operating budget for the facility. The figures are based on the
size of the center, the specific components of the facility, and the hours of operation. All
expenses were calculated to the high side and the actual cost may be less based on the final
design, operational philosophy, and programming considerations adopted by the City. The
consulting team was tasked with exploring three different operating models that included a
different mix of components. The Community Center includes two sheets of ice, expanded
concessions, dry land training, community rooms, banquet room, youth field complex with
concession stand. The multipurpose option includes two sheets of ice, an indoor turf field,
expanded concessions, community rooms, dry land training, lease space, outdoor softball fields
with a park pavilion and concessions. The Ice Arena option represents a two sheets of ice and
dryland training.
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b BAL ARI)*KING
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Recreation Facility Planning and Operation Consultants
Category Comm Center Multi-Purpose Ice Arena
Personnel
Full-time $525,200 $250,599 $250,599
Part-time $221,415 $170,247 $132,284
Total $746,615 $420,846 $382,883
Category Comm Center Multi-Purpose Ice Arena
Utilities $285,820 $312,800 $ 210,000
(gas & elect)
Telephone $ 3,950 $ 3,950 $ 3,950
Fuel/Lube $ 300 $ 300 $ 300
Contract services $ 12,450 $ 15,000 $ 15,000
Training/Conference $ 2,500 $ 2,500 $ 2,500
Rental equipment $ 4,000 $ 7,500 $ 7,500
Soft Drinks $ 8,000 $ 12,000 $ 10,000
Merch. for Resale $ 50,000 $ 65,000 $ 36,000
Publishing/Printing $ 7,500 $ 7,500 $ 7,500
Postage $ 250 $ 250 $ 250
Bank CC Fees $ 4,500 $ 6,500 $ 4,500
Operating Supplies $ 80,000 $ 90,000 $ 80,000
Advertising $ 15,000 $ 15,000 $ 15,000
Uniforms $ 1,750 $ 2,000 $ 1,750
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b BAL ARI)*KING
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Recreation Facility Planning and Operation Consultants
Category Comm Center Multi-Purpose Ice Arena
Insurance $ 6,500 $ 10,000 $ 6,500
Building Repair $ 35,000 $ 40,000 $ 35,000
Dues/Subscriptions $ 650 $ 650 $ 650
Building/Structure $ 7,500 $ 10,000 $ 7,500
Equipment $ 12,000 $ 15,000 $ 12,000
Other $ 2,500 $ 2,500 $ 2,500
Total $ 540,170 $618,450 $458,400
Grand Total $1,286,785 $1,039,296 $841,283
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1� BAL ARD*IQNG
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Recreation Facility Planning and Operation Consultants
Full-Time Staff—Ice Arena and Multi-purpose Options
Positions Facility Budget
Full-Time - Ice
Existing FT Staff $179,950
PERA $ 21,100
Medicare $ 4,100
Insurance $ 28,800
Workers Comp $ 9,350
Total Full-Time Personnel $243,300
Plus 3% for future increase $250,599
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Recreation Facility Planning and Operation Consultants
Full-Time—Community Center
Positions Salary
Full-Time
Facility Manager' $ 80,000
Ice Supervisor $ 55,000
Senior Supervisor $ 55,000
Maintenance Supervisor $ 55,000
Program Coordinator4 $ 45,000
Maintenance Worker $ 40,000
MOD/Building Attendant 5 $ 34,000
Secretary/Administration6 $ 40,000
Salaries $404,000
Benefits (30% of salaries) $121,200
Total Full-Time Personnel $525,200
'Responsible for the management of the community Center.
2 Responsible for ice arena operation and maintenance functions.
s Responsible for senior programming
4 Program support for senior activities,ice skating programs,general activities and fitness.
5 Level of management support during the evenings and weekends.Assist with room set-up,clean up and
programming on an as need basis.
6 Responsible for coordinating the Community Center office including phone calls,program registration,room
rentals,front desk support and supervision of the welcome desk operation.
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Recreation Facility Planning and Operation Consultants
Positions Hours/Wk Facility Budget
Part-Time — Community Center
Front Desk(51 wks) 108 hrs/wk $ 82,620
($15.00/hr)
Rink Worker (36) 70 hrs/wk $ 32,760
($13.00/hr)
Rink Worker (15) 51 hrs/wk $ 9,945
($13.00/hr)
Rink Attendant (36 wks) 39 hrs/wk $ 14,040
($10.00/hr)
Building Attendant (51 wks) 12/hrs/wk $ 7,038
($11.50/hr)
Lead Concession(36 wks) 30 hrs/wk $ 14,040
($13.00/hr)
Concession Attendant (36 wks) 38 hrs/wk $ 15,390
($11.25/hr)
Program Instructors'
General $ 16,320
Ice $ 13,528
Salaries $ 205,681
Benefits (7.65% of part-time wages) $ 15,734
Total Part-Time Salaries $ 221,415
Some programs and classes will be on a contractual basis with the center,where the facility will take a percentage
of the revenue collected for the program.These programs have not been calculated in this budget at this time.
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b BAL ARI)*KING
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Recreation Facility Planning and Operation Consultants
Revenues
The following revenue projections were formulated from information on the specifics of the
project and the demographics of the service area and other similar facilities. Actual figures will
vary based on the size and make-up of the components selected during final design, market
stratification, philosophy of operation, fees and charges policy, and priority of use. All revenues
were calculated conservatively as a result.
Revenue Projection Model:
Category Comm Center Multi-Purpose Ice Arena
Admissions $ 59,250 $ 73,000 $ 59,250
Bld Rentals $ 41,860 $ 14,500 $ 8,500
Ice Rental $572,000 $572,000 $ 572,000
Turf Rental $ 0 $151,520 $ 0
Recreation Fees $ 109,660 $ 74,000 $ 74,000
Skate Sharpening $ 4,500 $ 4,500 $ 4,500
Special Events $ 1,500 $ 3,500 $ 1,500
Vending $ 18,000 $ 20,500 $ 12,000
Birthday Parties $ 6,000 $ 11,250 $ 6,000
Advertising $ 25,000 $ 45,000 $ 25,000
Contributions $ 6,700 $ 6,700 $ 6,700
Ballfields $ 0 $ 8,475 $ 0
Dry Floor $ 24,375 $ 24,375 $ 24,375
Concessions $148,000 $195,500 $ 118,000
Silver Sneakers $ 12,960 $ 0 $ 0
Misc $ 6,500 $ 7,000 $ 5,000
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b BAL AR *KING
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Recreation Facility Planning and Operation Consultants
Grand Total $1,036,305 $1,211,820 $ 916,825
Expenditure—Revenue Comparison
Category Community Multi-purpose Ice Arena
Center
Expenditures $1,286,785 $1,039,296 $841,283
Revenue $1,036,305 $1,211,820 $916,825
Difference ($250,480) $172,524 $75,542
Recovery percentage 81% 116% 109%
This operational pro-forma was completed based on the best information available and a basic
understanding of the project. However, there is no guarantee that the expense and revenue
projections outlined above will be met as there are many variables that affect such estimates that
either cannot be accurately measured or are not consistent in their influence on the budgetary
process.
Future years: Expenditures — Revenue Comparison: Operation expenditures are expected to
increase by approximately 3% a year through the first 3 to 5 years of operation. Revenue growth
is expected to increase by 4% to 8% a year through the first three years and then level off with
only a slight growth (3% or less) the next two years. Expenses for the first year of operation
should be slightly lower than projected with the facility being under warranty and new. Revenue
growth in the first three years is attributed to increased market penetration and in the remaining
years to continued population growth. In most recreation facilities the first three years show
tremendous growth from increasing the market share of patrons who use such facilities, but at the
end of this time period revenue growth begins to flatten out.
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b BAL ARI)*KING
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Recreation Facility Planning and Operation Consultants
Part-Time Worksheets
Part-Time — Community Center
Front Desk(51 wks) 108 hrs/wk $ 82,620
($15.00/hr)
Rink Worker (36) 70 hrs/wk $ 32,760
($13.00/hr)
Rink Worker (15) 51 hrs/wk $ 9,945
($13.00/hr)
Rink Attendant (36 wks) 39 hrs/wk $ 14,040
($10.00/hr)
Building Attendant (51 wks) 12/hrs/wk $ 7,038
($11.50/hr)
Lead Concession(36 wks) 30 hrs/wk $ 14,040
($13.00/hr)
Concession Attendant (36 wks) 38 hrs/wk $ 15,390
($11.25/hr)
Program Instructors$
General $ 16,320
Ice $ 13,528
Salaries $ 205,681
Benefits (7.65% of part-time wages) $ 15,734
Total Part-Time Salaries $ 221,415
a Some programs and classes will be on a contractual basis with the center,where the facility will take a percentage
of the revenue collected for the program.These programs have not been calculated in this budget at this time.
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b BAL ARI)*KING
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Recreation Facility Planning and Operation Consultants
Part-Time — Ice Arena
Existing Part-time staff level $101,850
Benefits $ 17,000
Total Part-Time $118,850
Positions Hours/Wk Amount
Part-Time
Program/Maint Attendant (32 wks) 26 hrs/wk $ 12,480
($15.00/hr)
Benefits (7.65%) $ 954
Total Part-Time Salaries $ 13,434
Part-Time Worksheets — Multipurpose Option
Existing Part-time staff level $101,850
Benefits $ 17,000
Total Part-Time $118,850
Positions Hours/Wk Amount
Part-Time
Front Desk 30 hrs/wk $ 16,065
($10.50/hr)
Concession (Ballfield 15 wks) 44 hrs/wk $ 7,260
($11.00/hr)
Concession (expanded 30 wks) 74 hrs/wk $ 24,420
($11.00/hr)
Salaries $ 47,745
Benefits (7.65%) $ 3,652
Total $ 51,397
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Recreation Facility Planning and Operation Consultants
Concession Attendant—Softball (15 wks)
Mon-Fri
6pm-l0pm 4 1 5 20
Sat/Sun
9am-9pm 12 1 2 24
Total 44 hours
Total $18,040
Concession - expanded (32 wks)
Mon-Fri
4pm-9pm 5 1 5 25
Thursday
4-9pm 5 2 1 10
Saturday
9am—9pm 12 1 1 12
IPM-9pm 8 1 1 8
4pm-9pm 5 1 1 5
Sunday
9am-6pm 9 1 1 9
1pm-bpm 5 1 1 5
Total 74 hours
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Recreation Facility Planning and Operation Consultants
Program Fees and Revenue Worksheet
Community Center
Admissions
Category Number Fee Revenue
Daily 9,000 $5.00 $45,000
Passes 150 $45.00 $ 6,750
Family Pass 75 $100 $ 7,500
Total $59,250
Rentals
Building Rentals
Category Number Fee Revenue
Dry Floor $24,375
Building Rentals $ 2,500
Lease Space $ 6,000
Dry Land Training $ 6,000
Meeting Rooms 312 $ 9,360
Banquet Room 18 $500 $ 9,000
Lion's Park Rental $ 9,000
Total $66,235
Ice Rentals
Category Number Fee Revenue
Prime 2240 $200.00 $448,000
Non Prime 800 $155.00 $124,000
Total $572,000
Ice Programs
Category Number Fee Revenue
Existing Level $74,000
Birthday Parties
Category Number Fee Revenue
Ice 40 $150.00 $6,000
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Concessions
Category Revenue
$58,000 FC should gross 2.5 times the cost $145,000
Pro-Shop $ 3,000
Vending $ 12,000
$160,000
Silver Sneakers
Category Number/wk Visit Fee Months Revenue
Fitness 90 360 $3.00 12 $12,960
Ice Arena
Admissions
Category Number Fee Revenue
Daily 9,000 $5.00 $45,000
Passes 150 $45.00 $ 6,750
Family Pass 75 $100 $ 7,500
Total $59,250
Building Rentals
Category Number Fee Revenue
Dry Floor $24,375
Building Rentals $ 2,500
Dry Land Training $ 6,000
$32,875
Ice Rentals
Category Number Fee Revenue
Prime 2,240 $200.00 $448,000
Non Prime 800 $155.00 $124,000
Total $572,000
Birthday Parties
Category Number Fee Revenue
Ice 40 $150.00 $6,000
Concessions
Category Revenue
$46,000 FC should gross 2.5 times the cost $115,000
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Recreation Facility Planning and Operation Consultants
Pro-Shop $ 3,000
Vending $ 18,000
$138,000
Ice Programs
Category Number Fee Revenue
Existing Level $74,000
Multi-Purpose
Admissions
Category Number Fee Revenue
Daily 10,800 $5.00 $54,000
Passes 200 $45.00 $ 9,000
Family Pass 100 $100 $10,000
Total $73,000
Rentals
Category Number/wk Fee Weeks Revenue
Turf Field—Prime 12 $150/hr 32 $ 57,600
Turf Field—N/P 4 $110/hr 32 $ 14,080
1/2 Field Prime 10 $85/hr 32 $ 27,200
1/2 Field N/P 8 $65/hr 32 $ 16,640
Meeting Rooms 6 $30.00 52 $ 9,360
Tournaments 24 $150/hr 10 $ 36,000
Total $ 160,880
Building Rentals
Category Number Fee Revenue
Dry Floor $24,375
Building Rentals $ 2,500
Lease Space $ 6,000
Dryland $ 6,000
$38,875
Ice Rentals
Category Number Fee Revenue
Prime 2050 $200.00 $410,000
Non Prime 800 $155.00 $124,000
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Recreation Facility Planning and Operation Consultants
Total $534,000
Ballfield
Category Number Fee Revenue
Field Prep 60 $50 $3,000
Light Fee 60 $35 $2,100
Pavilion Rental 45 $75 $3,375
$8,475
Birthday Parties
Category Number Fee Revenue
Ice/Turf 75 $150.00 $11,250
Silver Sneakers
Category Number/wk Visit Fee Months Revenue
Fitness 90 360 $3.00 12 $12,960
Concessions
Category Revenue
$77,000 FC should gross 2.5 times the cost $192,500
Pro-Shop $ 3,000
Vending $ 20,500
$216,000
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