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HomeMy WebLinkAboutCouncil Resolution 1359RESOLUTION NO. CITY COUNCIL AGREEMENT TO SUPPORT OPERATIONS OF A COMMUNITY CENTER Recitals: A. The City ol'Central Point conducted a master plan for a potential community center in 20012-13. B. Costs for the Community center were established by a local architect. C. City staff prepared a business plan that detailed the cost to operate the center at full build out. D. The business operations plan indicated a funding gap where additional public revenue would be needed to support operations of the fully built out community center. E. An Ad -Hoc committee was established in 2013 to review the phasing of the community center and make recommendations on funding. F. Ad-1-loc Committee recommended three funding levels for amenities and features in the community center with operational needs for each. G. The Ad -Hoc Committee recommends that if outside funding is obtained with any option that additional community outreach and City Council approval of the operations plan be completed prior to acceptance of any funds. The Citv of Central Point resolves as follows: Section 1. The City of Central recognizes three options for a Community Center based on amenities, features and operational needs as detailed below. Section 2. Each option requires a different funding level. If outside funding is obtained for any of the three options, prior to acceptance of such funding, A. The City will conduct additional community outreach. B. Approval of the operations plan by City Council will be required. A. Funding Level 1: 5 to 8 million dollars Construction Costs: Expected Operating Costs: $900,000 annually (Exhibit A) Expected Operating Revenue: $650,000 annually (Exhibit A) General Fund Contribution on Administration and other costs: $550,000 Utility fee: 0.00 to $1.00 (0.00 to $100,000), depending on annual operating costs. E Option 1 Feature Cost Circulation/HVAC Engineerin/Arch Administration 5 276,180 5 33,142 5 69,045 Large & Small Gym & Locker $ 1,680,000 $ 201,600 5 420,000 Aerobics/Yoga/Rac Ball 5 176,000 $ 21,120 5 44,000 Family Pool $ 605,000 $ 72,600 $ 151,250 Pool Admin/Storage/Seating $ 855,350 5 102,612 $ 213,838 Senior Center $ 263,560 $ 34,027 5 70,890 Pre-K/After School $ 348,280 $ 41,794 $ 87,070 1 multipurpose rooms $ 125,000 $ 15,000 $ 31,250 Catering Suite 5 189,000 5 22,680 $ 47,250 Mech/Elec/Custodial $ 92,400 $ 11,088 5 23,100 Teen Room $ 117,000 $ 14,040 $ 29,250 Parking Phase 1 $ 600,000 $ 90,000 Site Development Phase 1 5 200,000 $ - $ - Sub -Total $ 4,747,770 $ 569,732 $ 1,276,943 5 6,594,445 VA Suite 5 192,500 $ 23,100 5 48,125 Hospital Suite $ 600,000 $ 72,000 $ 150,000 Therapy Spa 5 210,000 $ 25,200 $ 52,500 Sub -Total $ 1,002,500 $ 120,300 $ 250,625 $ 1,373,425 Total $ 7,967,870 Expected Operating Costs: $900,000 annually (Exhibit A) Expected Operating Revenue: $650,000 annually (Exhibit A) General Fund Contribution on Administration and other costs: $550,000 Utility fee: 0.00 to $1.00 (0.00 to $100,000), depending on annual operating costs. E B. Funding Level 2: 8 to 12 million dollars Construction Costs: Total Expected Operating Costs: $1,400,000 annually Expected Revenue: $900,000 annually General Fund Contribution on Administration and other costs: $550,000 Potential Utility fee: $1.00 to $2.00 ($100,000-200,000) 3 $ 6,724,595 $ 1,373,425 $ 3,597,760 $11,695,780 Option 2 Feature Cost Circulation Engineerin/Arch Administration 5 276,180 $ 33,142 $ 69,045 Large & Small Gym & Locker $ 1,680,000 $ 201,600 $ 420,000 Aerobics/Yoga/Rac Ball $ 176,000 $ 21,120 $ 44,000 Family Pool 5 605,000 $ 72,500 $ 151,250 Pool Admin/Storage/Seating $ 855,350 $ 102,642 $ 213,838 Senior Center $ 283,560 5 34,027 5 70,890 Pre-K/After School $ 348,280 $ 41,794 $ 87,070 2 multipurpose rooms $ 220,000 $ 26,400 $ 55,000 Catering Suite S 189,000 $ 22,680 S 47,250 Mech/Elec/Custodial $ 92,400 $ 11,088 $ 23,100 Teen Room S 117,000 $ 14,040 $ 29,250 Parking Phase $ 600,000 $ 90,000 Site Development Phase 1 $ 200,000 $ - Sub -Total $ 4,842,770 $ 581,132 $ 1,300,693 VA Suite $ 192,500 S 23,100 $ 48,125 Hospital Suite $ 600,000 $ 72,000 $ 150,000 Therapy Spa $ 210,000 5 25,200 5 52,500 Sub -Total $ 1,002,500 $ 120,300 5 250,625 Competition Pool $ 1,800,000 $ 216,000 $ 450,000 Spectator Viewing 5 248,000 $ 29,760 5 62,000 Parking Phase $ 600,000 $ 72,000 $ 90,000 Site Development Phase 2 $ 30,000 Sub -Total $ 2,678,000 $ 317,760 $ 602,000 Total Expected Operating Costs: $1,400,000 annually Expected Revenue: $900,000 annually General Fund Contribution on Administration and other costs: $550,000 Potential Utility fee: $1.00 to $2.00 ($100,000-200,000) 3 $ 6,724,595 $ 1,373,425 $ 3,597,760 $11,695,780 C. Funding Level 3 Feature Administration Large & Small Gym & Locker Aerobics/Yoga/Rac Ball Family Pool Pool Admin/Storage/Seating Senior Center Pre-K/After School 2 multipurpose rooms Catering Suite Mech/Elec/Custodial Teen Room Parking Phase 1 Site Development Phase 1 Sub -Total VA Suite Hospital Suite Therapy Spa Sub-Totaal Competition Pool Spectator Viewing Parking Phase 2 Site Development Phase 2 Sub -Total Fitness Center Running Track Child Watch/Support 2nd Story Locker Rooms Aerobic/Dance/Yoga Room Elevator 3 classrooms Parking Phase 3 Site Development Phase 3 2nd Viewing Deck Sub -Total Total 12 - 18 Million Option 3 Cost $ 276,180 $ 1,680,000 $ 176,000 $ 605,000 $ 855,350 $ 283,560 $ 348,280 $ 220,000 $ 189,000 $ 92,400 $ 117,000 $ 600,000 $ 200,000 $ 4,842,770 $ 192,500 $ 600,000 $ 210,000 $ 1,002,500 $ 1,800,000 $ 248,000 $ 600,000 $ 30,000 $ 2,678,000 $ 280,500 S 216,000 $ 102,600 $ 336,000 $ 264,000 $ 50,000 $ 264,000 $ 700,000 $ 120,000 $ 248,000 Operational Costs: $1,760,000 Revenue: $1,130,000 $ 2,581,100 Circulation/HVAC $ 33,142 $ 201,600 $ 21,120 $ 72,600 $ 102,642 $ 34,027 $ 41,794 $ 26,400 $ 22,680 $ 11,088 $ 14,040 $ 72,000 $ 653,132 $ 23,100 $ 72,000 $ 25,200 $ 120,300 $ 216,000 $ 29,760 S - $ 245,760 $ 33,560 $ 25,920 $ 12,312 $ 40,320 $ 31,680 $ 6,000 $ 31,680 5 29,760 $ 211,332 General Fund (Current Recreation & DJ) $550,000 rd Engmeenn/Arch $ 69,045 $ 420,000 5 44,000 $ 151,250 $ 213,838 5 70,890 $ 87,070 $ 55,000 $ 47,250 $ 23,100 $ 29,250 $ 90,000 5 7 1,300,693 23,100 72,000 25,200 120,300 216,000 29,700 90,000 335,760 33,660 25,920 12,312 40,320 31,680 6,000 31,680 105,000 29,760 316,332 $ 6,796,595 5 1,243,100 $ 3,259,520 $ 3,108,764 $14,407,979 Potential Utility Fee: $1.50 to $3.00 ($150,000-300,000) P ssed b the Council and signed by me in authentication of its passage this 5 day of , 2013. 0- 144 -Al 1< Mayor Hank Williams Exhibit A Southern Oregon Regional Rehabilitation, Recreation, and Community Center Proposed Operating Budget January 2012 Operating Budget The operational budget planning for the Southern Oregon Regional Rehabilitation, Recreation, and Community Center uses a conservative approach to estimating reasonable expenses and a moderate approach to projecting revenues and is based on an understanding of the conceptual project, the best available market area information, and the current practices of the City of Central Point. A line item operation budget is provided below. While this initial budget provides a baseline, it is anticipated that revenues during the first year of operation may exceed these projections for these reasons: • Leading up to, and during the first year of operation, marketing and promotion efforts and costs will be elevated to attract an expanded population. • Particularly in year one and two, the attraction of the facility will be higher than in subsequent years when the "newness" of the spaces declines and interest in participation weakens. There is no guarantee that the estimates and projections will be met, and there are many variables that cannot be accurately determined during this conceptual planning stage or are subject to change during the actual design and implementation process. Expenditures and revenues have been developed based on the typical costs that occur in the operation of a community center type facility. Expenses and revenues are based on the overall size of the facility, the specific components within the building and the projected hours of operation. Actual costs were utilized whenever possible and estimates for other expenses were based on similar facilities in other areas. All expenses and revenues were calculated as accurately as possible though actual cost may be more or less as final component design occurs and facility begins operation. Site Description As initially conceived, the Southern Oregon Regional Rehabilitation, Recreation, and Community Center will have the following components: a large and small gymnasium, group exercise room, community pool, competition pool, therapy pool, racquetball courts, weight/cardiovascular area, track, senior center, commercial kitchen, class rooms, hospital/medical offices, Veterans Administration therapy suite, preschool classrooms, lobby/lounge/vending area, locker rooms and administrative area. Approximately 91,895 square feet. Southern Oregon Regional Rehabilitation, Recreation, and Community Center - Pronosed Oneratinv RudQet Pane 1 Budget Summary Parks and Recreation User Fee Although, as is shown in the Budget Summary above, cost recovery is estimated to be relatively high at 90%, there will need to be a mechanism to make up for the difference between expected revenues and expenditures. Staff suggests the implementation of a $3.00 a year Parks and Recreation user fee that will offset this operational deficit. The fee will be analyzed yearly, during the budget process, to ensure that the fee is accurate and meets the needs of the Southern Oregon Regional Rehabilitation, Recreation, and Community Center. Expenditures Expenses are based on the overall size of the facility, the specific components within the building and the projected hours of operation. Actual costs were utilized whenever possible and estimates for other expenses were based on similar facilities in other areas. All expenses were calculated as accurately as possible though actual cost may be more or less as final component design occurs and facility begins operation. Generally, personnel costs make up the single highest expense for most multi-purpose recreation facilities, often 60% of the operational budget. For the Southern Oregon Regional Rehabilitation, Recreation, and Community Center personnel costs are projected to be around 61 %. An estimate of staff levels is provided below. Expenditures Costs Operating Facility Size in Square Feet 91,895 Revenue All Operational Cost per Subsidy/ Cost Facility Size Sources Expenses Square Foot Investment Recovery 91,895 SF $1,579,615 $1,758,588 $19.14 $178,973 90% Parks and Recreation User Fee Although, as is shown in the Budget Summary above, cost recovery is estimated to be relatively high at 90%, there will need to be a mechanism to make up for the difference between expected revenues and expenditures. Staff suggests the implementation of a $3.00 a year Parks and Recreation user fee that will offset this operational deficit. The fee will be analyzed yearly, during the budget process, to ensure that the fee is accurate and meets the needs of the Southern Oregon Regional Rehabilitation, Recreation, and Community Center. Expenditures Expenses are based on the overall size of the facility, the specific components within the building and the projected hours of operation. Actual costs were utilized whenever possible and estimates for other expenses were based on similar facilities in other areas. All expenses were calculated as accurately as possible though actual cost may be more or less as final component design occurs and facility begins operation. Generally, personnel costs make up the single highest expense for most multi-purpose recreation facilities, often 60% of the operational budget. For the Southern Oregon Regional Rehabilitation, Recreation, and Community Center personnel costs are projected to be around 61 %. An estimate of staff levels is provided below. Expenditures Costs Notes Facility Size in Square Feet 91,895 Personnel Service Full -Time Recreation Salaries (w/benefits) $345,000.00 Part -Time Recreation Salaries $735.746.00 Subtotal Personnel $1,080,746.00 Utilities, Supplies, Repairs Operational Supplies $25,000.00 Utilities $ 150,000.00 Maintenance Supplies $ 25,000.00 Equipment Repair $10,000.00 Aquatics Supplies $30,000.00 Subtotal Supplies $240,000.00 Southern Oregon Regional Rehabilitation, Recreation, and Community Center - Proposed Operating Budget Page 2 Programs General Recreation $125,000.00 General operating funds KidVenture $7,350.00 excluding salaries Discover Afterschool $24,526.00 excluding salaries Scholarships $25,000.00 Fitness & Specialty Classes $16,000.00 Exercise supplies other than equipment Subtotal Services $197,876.00 Contracted Service /Miscellaneous Bank card, printing, contracted services $43,000.00 Advertising, dues, telephone, equipment rental $48,800.00 Janitorial Services $96,945.00 Subtotal Services $188,745.00 Ca tial Buildings & Improvements $34,147.34 Budgeted at 2% of operating budget Machinery & Equipment $17,073.67 Budgeted at I% of operating budget Subtotal Capital $51,221.01 Grand Total Expenditures $1,758,588.01 Operating cost per square foot $19.14 Southern Oregon Regional Rehabilitation, Recreation, and Community Center - Proposed Operating Budget Page 3 Facility Rentals & Concessions Locker rentals, towels, etc. $12,600.00 Facility Rentals $62,400.00 Aquatic Rentals $20,280.00 Drop -In Daycare $21,960.00 Subtotalfacility operations $117,240.00 Programs/Classes KidVentures $72,900.00 Discovery Afterschool $172,625.00 Specialty Classes $6,000.00 Fitness Classes $65,160.00 Aquatic Lessons $93,600.00 Subtotal programs $410,285.00 Leased Space Concessions & Vending $ 9,600.00 Lease @ $800 per month Hospital $90,000.00 @ $1.50 per sq. ft. per month - 5000 sq. ft. Veterans Administration $14,400.00 Utilities only Sub total leased s ace $114,000.00 City of Central Point City of Central Point $450,000.00 City Contribution GRAND TOTAL REVENUE $1,579,615.00 Southern Oregon Regional Rehabilitation, Recreation, and Community Center - Proposed Operating Budget Page 5 Proposed Hours of Operation Daily operational hours do not reflect hours for rentals of meeting rooms, after hour activities, etc. These hours will be agreed upon time beyond hours open to the public. The facility is closed eleven holidays and may also have reduced hours on the eves of some holidays. We expect that the center will also be closed seven days per year for annual maintenance and deep cleaning. The total operating hours per week equal 96.5 and the operating budgets are based on staffing for these hours. Additional hours will be available for programs, rentals, special events, etc. Facilities are intended to be designed to allow after hour rentals of components that are in high demand such as conference/banquet rooms, multi -use courts, while having the ability to minimize staffing and control access to unused parts of the center. Hours ofOneration Operational Hours Public/Pro ram Hours Total Hours Monday — Friday 5:30 am to 9:00 pm 77.5 Saturday 7:30 am to 6:30 pm I 1 Sunday 10:00 am to 6:00 pm 8 Total hours of operation per week 96.5 Estimated Staffing Levels The construction and operation of the Central Point Community Center will require the addition of fulltime and several part-time personnel to supplement staffing needs. The details of the staffing plan and schedule are below. New positions have been bold/italicized. Personnel costs are budgeted at 61% of the total community center budget. Please note that potential hospital and VA staffs are not included below. Full Time Staff Title Description Wa es Facility/Aquatics Responsible for overall operation and management of $80,000 Manager the facility. Facility Coordinator Coordinate staff and activities, schedule rentals, and $70,000 have supervision responsibilities and limited management responsibilities. This position will work an opposing schedule from the Program Coordinator, providing nearly around the clock full time supervision and management for the Community Center. Program Coordinator Coordinate Community Center programs and work in $70,000 conjunction with the Facility Coordinator to provide supervision and management for the Community Center. Aquatics Coordinator Coordinate with staff and activities in the aquatics $60,000 portion of the facility, schedule aquatic rentals and have supervision responsibilities and limited management responsibilities. Southern Oregon Regional Rehabilitation, Recreation, and Community Center - Proposed Operating Budget Page 6 Maintenance Coordinate all site maintenance and janitorial $65,000 Coordinator activities. May also be responsible for special event $49,500 Lie Guards coordination and maintenance. $119,100 Total Full Time Salaries $345,000 Part Time Staff Title Number of Positions Wages for all positions Guest Service/Receptionist 4+ $49,500 Lie Guards 15 $119,100 Head Lie Guards 4+ $61,020 Maintenance Sta 2+ $39,700 Instructors 20-30 $144,000 Fitness Trainers 4+ $72,000 Senior Coordinator 1 $24,816 Preschool Teachers 8+ $64,750 Discovery After School Staff 10-12 $160,860 Total Part Time Salaries $735,746 'These positions could be outsourced. National average for wages is $10 to $14 per hour. National average for wages is $12 to $50 per hour depending on certification Total Staf/<np Positions Wages/Salaries Total Full Time 5 $345,000 Total Part Time 69 $717,556 Grand Totals 74 $1,080,746 Southern Oregon Regional Rehabilitation, Recreation, and Community Center - Proposed Operating Budget Page 7 Southern Oregon Regional Rehabilitation, Recreation, and Community Center Organization Chart Facilities Manager/Coordinator 1FTE Aquatics Manager (1) 1 FTE Head Lifeguard (3-4 PT) Part Time Lifeguards (10-15 PT) Parks & Public Works Director Facilities / Aquatic Director 1 F"fE Maintenance Staff Lead (I PT) Workers (2 PT) Program Manager/Coordinator 1FTE Childcare/ Preschool (preschool 6-8 PT) (afterschool 8-12 PT) Preschool Teachers (4 PT) Preschool Helpers (4 PT) After School Teachers (4 PT) After School Helpers (4 PT) Fitness/Recreation Instructors (15-25 PT) Southern Oregon Regional Rehabilitation, Recreation. and Community Center - Proposed Operating Budget Page 8