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

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Fitness Within the fitness area, the square feet dedicated to fitness programming will double. Fitness programming will be provided on an ongoing basis, similar to current programs, but with more dedicated as well as multi -use space. This estimate is based on review of revenue at comparable size facilities in the area and current revenue generated. Currently FitZone classes are included with general facility admission and include a paid instructor (vs lap swimming, which does not require an instructor). A budget transfer is made to cover costs, but does not give the ability to track net revenue. This was approximately $75,000 in 2015, with an additional $29,221 generated in specialty classes. Additional FitZone classes and specialized (contractual) classes are estimated at 53% net revenue increase. When classes are not in use for groups, it will be important to keep fitness rooms occupied and thus generating revenue. One option is to consider a drop in independent use of classroom space, such as Fitness on Demand. This is shown as an option with conservative use. Aquatics With an expanded aquatics and fitness venue, the Louisville Recreation /Senior Center will have the ability to offer additional aquatics programming (i.e. swim lessons, aquatic exercise) on a year -round basis. This estimate is based on review of revenue at comparable size facilities in the area and current revenue generated. Conservative estimates were used for additional programming in terms of numbers of participants. Additional classes should be concentrated in areas (level and time of year) where classes do tend to fill more quickly and are estimated for 21 weeks. An estimated net revenue increase is shown, primarily in the group Learn to Swim classes and the potential "specialty" classes generated by the type of water bodies being added to the program. These include such things as Watsu Massage, Toning, Water Arthritis, and Core Strengthening for Seniors. Water equipment, such as treadmills and bikes are also an option for additional program /drop in revenue. Another consideration is moving all lessons indoors such that cancellations due to weather are eliminated. Memory Square Pool could then offer additional lap swimming time and open play. Lifeguard costs are shown as an addition to current operations. It is assumed that with the new natatorium the leisure pool / slide will be open from 12 noon on weekdays and Saturdays, allowing for lessons and classes to occur throughout the pools in the mornings. Cost Recovery The 2015 cost recovery for the Louisville Recreation & Senior Center was 72 %, including the funding in the Public Works budget supporting center operations and an estimate capital costs provided by staff. Cost recovery on the expansion alone is projected at 42 %, with overall cost recovery for the expanded facility at 66 %. This is a conservative estimate and has served as the basis for facility pricing. A continual goal should be to sustain cost recovery through a focused staff effort, resulting in high quality facility management, customer service, and marketing. Cost Recovery is further discussed under the Financial Analysis. Rentals Market analysis for room rental /social event venue indicates an opportunity to generate additional revenue in this area. These proposed fees do not take into account peak and non -peak times, but should 18 Recreation & Senior Center Expansion Feasibility Study 19