Recreation/Senior Center and Aquatic Center Expansion Task Force Agenda and Packet 2016 05 07 SUB

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with final design. For this analysis utilities are estimated to be $3.25 per square foot, per year for non - aquatic space and $5.25 per square foot for aquatic spaces. Other typical services include contracted instructional services, marketing and advertising, printing and publishing, travel and training, subscriptions and memberships, telephone, bank charges and administrative fees, miscellaneous service charges (permits, licenses, taxes, fees), building and equipment maintenance (contractual or rental services), other contracted services (security and fire systems, elevator, trash pick -up, etc.), property and liability insurance, building maintenance, and repair. Overall services expenses typically approximate 30% of the overall operational budget. Expenditure estimates are based on the type and size of the activity and support spaces planned for expansion in the facility and anticipated hours of operation. When possible and wherever available, calculations are based on actual best practice or methodology. Comparison data from similar facilities in the region was also analyzed to prepare estimates. Capital Renovation Allocation A limited capital renovation allocation of 5% for building improvements, machinery, and equipment has been included in order to keep the facility up -to -date and to provide state -of- the -art equipment. It is not anticipated that this allocation will be needed for the expansion in the first several years of operation, but that the allocation will accumulate over time and be carried forward for future use. • Building and Improvements should be budgeted at 3% of operating budget. • Machinery and Equipment should be budgeted at 2% of operating budget. A request was made at the Task Force Meeting of April 27th to consider as an option, calculating Capital Renovation based on the capital cost of construction and life cycle costing. This cannot be done at this time, but can be considered. Admissions Revenue Revenue forecasts include current estimates of anticipated drop -in fees, punch card and pass sales, and rentals, around anticipated scheduled programming related to fitness and aquatics. This takes into consideration program and facility components as well as multiple admissions and age discounts options. The revenue categories for the expansion include: • Daily admissions, punch cards, and passes • Aquatics lessons and programs • Fitness /wellness /aerobic programs • Rental opportunities Revenue forecasts are based on the space components included in the facility, anticipated demographics of the local service area, and a comparison to other facilities with similar components in surrounding communities. Actual figures will vary based on the final design and allocation of facility spaces, the market at the time of opening, adopted facility operating philosophy, the aggressiveness of fees and use policies implemented, and the type of marketing effort undertaken to attract potential users to the facility. The revenue forecast will require an ongoing effective marketing approach in order to meet revenue goals. 16 Recreation & Senior Center Expansion Feasibility Study 17