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2018-060 Luxury Lounger Fee WP 2018Date: May 18, 2018 Report No. 2018-060 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Establish a fee for the rental of new luxury loungers (Exhibit 1) at Water Works Park to begin this summer season. BACKGROUND: Water Works Park currently has ten cabanas that are rented out during the summer to patrons. Each cabana can accommodate up to eight people. Four luxury lounger shade structures that can accommodate two people were recently purchased to provide additional shaded seating options. The rental of luxury loungers is not included in the current 2017-18 Parks and Recreation Fee Schedule (Exhibit 2) which was adopted on September 19, 2017. According to the CITY CODE OF ORDINANCES (Exhibit 3), Subpart A, Chapter 22 – Parks and Recreation, Article II, Sec. 22-28 – Facility and program fees: (a) The department of parks and recreation shall charge and collect the fees for the use of buildings and facilities and for recreational programs, services, and merchandise offered by the department in the amounts established in a "Schedule of Fees"* adopted from time to time by ordinance of the city council. (b) The director of the department may set, charge and collect fees for classes, trips, equipment, merchandise, police or supervisory services, and other programs, services, events and merchandise provided or offered by the department where no fee is established in the "Schedule of Fees"*. The fee or charge shall be based on the costs of providing the event, service, equipment or goods. (Code 1966 § 15-3.1; Ord. No. 91-055, § I, 4-2-91; Ord. No. 93-206, § I, 11-2-93; Ord. No. 99- 311, § 1, 9-7-99; Ord. No. 2003-267, § 1, 9-2-03; Ord. No. 2004-262, § 1, 9-21-04; Ord. No. 2005-015, § 1, 1-18-05; Ord. No. 2009-224, § 1, 9-22-09) *Note— Said "Schedule of Fees" is not set out herein but is available for inspection in the offices of the city. In addition, PROS Consulting has recently completed an assessment of the Aquatic Center’s operations (Exhibit 4). It includes an analysis and inventory of the current aquatics facilities’ operational and financial models. The assessment also reviewed current and anticipated supply and demand for aquatic facilities and programming. The assessment provides “next” practices and implementation strategies to achieve strategic objectives. This assessment was presented to City Council and the Denton ISD Board of Trustees during a joint meeting held on May 7, 2018. As part of the study, an Implementation Plan (Exhibit 4) was drafted. One of the goals of the plan is to increase the cost recovery of the Aquatic Division. Objective 2.4, page 6, calls for “premium revenue generating services at Date: May 18, 2018 Report No. 2018-060 Water Works Park” and includes a recommendation to purchase luxury loungers in order to help achieve this objective. Rental timeframes for both the cabanas and luxury loungers have been scheduled for use as follows:  Monday-Thursday 11a-3p and 3p-7p  Friday-Saturday 11a-3p and 3p-7p  Sunday 12p-4p and 4p-7p CONCLUSION Based on the current city ordinance and the recommendation made by PROS Consulting the Director of Parks and Recreation would like to establish the following fees for luxury loungers:  3-Hour Rental Monday – Thursday $30 resident/$35 non-resident  1-Extra Hour Monday – Thursday $10  3 -Hour Rental Friday – Sunday $40 resident/$45 non-resident  1-Extra Hour Friday – Sunday $15  Water Park Season Pass Holders receive $5 off total fee for luxury lounger rental Based on the above fee structure and an average sale price of $35 per rental, it is conservatively projected to generate $700 per luxury lounger. Cost to purchase the lounger was $590 per unit. It is unknown how long these assets will last, but staff is projecting 3 years. With this anticipated life span, each lounger could gross $2,100 over three years with a profit of approximately $1,510 each. It would be the intention of this fee to be included in the proposed Parks and Recreation Fees presented to City Council during the upcoming budget process. ATTACHMENT(S): Exhibit 1: Photo of luxury lounger Exhibit 2: 2017-18 Parks and Recreation Fees (September 19, 2017) Exhibit 3: Code of Ordinances Exhibit 4: PROS Consulting Aquatics Assessment Implementation Plan (April 2018) STAFF CONTACT: Laura Behrens Assistant Director of Parks and Recreation Laura.Behrens@cityofdenton.com LUXURY LOUNGER 1 Exhibit A PARKS AND RECREATION FEES General Fund Only Effective October 1, 2017 General  Special Event Application Fee $30 per application  Vendor Permit – Nonprofit $15  Vendor Permit- For profit $25 Rec Pass (Resident/Nonresident)  Individual ages 8 and up $10/$15  Replacement $2/$2 Facility Rentals Recreation Centers  Building Attendant $14 per hour for rentals scheduled after operating hours  Security Deposit $100 to reserve rental date  Security Fee $20 per hour based on attendance Gym space  Full gym $65 per hour  Half gym $35 per hour  Nonresident fee is $5.00 per reservation Small meeting rooms $25 (per hour) at MLK  Ammons A  Ammons B  Nonresident fee is $5.00 per reservation Denia  Room A  Room C  Nonresident fee is $5.00 per reservation North Lakes  Room A  Nonresident fee is $5.00 per reservation Senior Center  Conference Room  Craft Room  Nonresident fee is $5.00 per reservation Large meeting rooms $30 (per hour) 2 Denia  Room B  Nonresident fee is $5.00 per reservation North Lakes  Room B  Nonresident fee is $5.00 per reservation Senior Center  Room 143  Room 144  Room 145  Nonresident fee is $5.00 per reservation Multipurpose rooms $20 (per hour) MLK Jr.  Kitchen  Craft Room  Game Room  Nonresident fee is $5.00 per reservation American Legion Hall  Main Room  Annex  Nonresident fee is $5.00 per reservation Senior Center  Kitchen  Nonresident fee is $5.00 per reservation Multipurpose rooms $40 (per hour) Senior Center  Multipurpose room (half)  Nonresident fee is $5.00 per reservation Multipurpose rooms $80(per hour) Nonresident fee is $5.00 per reservation Senior Center  Multipurpose room (whole)  Nonresident fee is $5.00 per reservation Civic Center  Rotunda $100 per hour, maximum of 600 attendees  Meeting Room 1 $65 per hour  Meeting Room 2 $45 per hour  Kitchen $25 per hour  Outside Plaza $25 per hour  Security Deposit $200 to reserve rental date  Refundable Damage Deposit $800  Building Attendant $14 per hour based on attendance  Cleaning Fee $400 per rotunda rental  Nonresident fee is $5.00 per reservation 3  Security Fee $20 per hour based on attendance Depending on the rental additional fees may apply: vendor permit, special event Application fee. Pavilion and Stage  Small $10 per hour  Large $15 per hour  CH Collins Stage at Fred Moore Park $15 (per hour)  Nonresident fee is $5.00 per reservation Neighborhood Park Rental  Fred Moore Park $65 per hour Regional Park Rental  North Lakes Park $75 per hour  South Lakes Park $75 per hour  Quakertown North $200 per hour  Quakertown South $200 per hour  Nonresident fee is $5.00 per reservation Athletic Sport Complex  Denia Softball $1,300 for a two day tournament (must meet specific field requirements)  North Lakes $1,300 for a two day tournament (must meet specific field requirements)  Nonresident fee is $5.00 per reservation Athletic Fields  Unlighted $15 per hour  Lighted $25 per hour  Nonresident fee is $5.00 per reservation Goldfield Tennis Center  Tennis Tournament $5 per court, per hour, 8 hour minimum  Nonresident fee is $5.00 per reservation Goldfield Tennis Center  Unlighted Court $2 per individual, per hour  Lighted Court $4 per individual, per hour  Nonresident fee is $1.00 per reservation Tennis Passes Goldfield Tennis Center (Resident/Nonresident)  Individual Annual Pass $70 each Youth Sports (Resident/Nonresident)  Impact $15/$20 4  Select Impact $25/$30 Aquatic Daily Admissions Water Works Park (Resident/Nonresident)  Under 48” $13/$15  Over 48” $17/$19  Non-Swimmer $5/$7  Children 2 and under are free Natatorium: (Resident/Nonresident)  Ages 3-15 $3/$4  Ages 16 + $4/$5  Children 2 and under are free Civic Center Pool: (Resident/Nonresident)  Under 18 $3/$3  Over 18 $4/$4 Aquatic Passes Water Works Park (Resident/Nonresident)  Individual Season Pass $75/$80  Individual Monthly Pass $30/$35 Natatorium: (Resident/Nonresident)  Individual Monthly Pass $20/$25  Individual Three Month Pass $45/$50  Individual Annual Pass $120/$125  Individual Punch Pass for 10 visits age 16+ $30/$35  Individual Punch Pass for 10 visits ages 3-15 $25/$30  Fitness Passholder One Month Pass (30 days) $10/$15  Fitness Passholder Three Month Pass (90 days) $25/$30  Fitness Passholder Annual Pass (365 days) $75/$80 Civic Center Pool: (Resident/Nonresident)  Individual Season Pass $40/$45 All Access Pass: Water Works, Civic Center Pool and Natatorium)  Individual annual pass $150/$155 Aquatic Rentals Water Works Park  2-Hour Rental (1-400 guests) $1,250.00 Extra hour $500  2 -Hour Rental (401-600 guests) $1,400 Extra hour $525  2 -Hour Rental (601-800 guests) $1,600 Extra hour $5504  2 -Hour Rental (801-1200 guests) $1,800 Extra hour $575  2 -Hour Rental (1201-1600 guests) $2,000 Extra hour $600  Nonresident fee is $5.00 per reservation 5 Water Works Park Cabanas  3-Hour Rental Monday – Thursday $60/$65  1-Extra Hour Monday – Thursday $20  3 -Hour Rental Friday – Sunday $75/$80  1-Extra Hour Friday – Sunday $25  Nonresident fee is $5.00 per reservation Water Works Park Pavilion  Corporate pavilion $150 per hour  Party pavilion $75 per hour  Nonresident fee is $5.00 per reservation Natatorium  2-Hour Rental (under 100 guests) $250 Extra hour $100  2 -Hour Rental (100-199 guests) $350 Extra hour $125  2 -Hour Rental (200-299 guests) $450Extra hour $150  2 -Hour Rental (300-400 guests) $550 Extra hour $175  Nonresident fee is $5.00 per reservation Civic Center Pool  2-Hour Rental (1-100 guests) $225 Extra hour $100  2 -Hour Rental (101-200 guests) $325 Extra hour $125  2 -Hour Rental (201-300 guests) $425 Extra hour $150  2 -Hour Rental (301-400 guests) $525 Extra hour $175  Nonresident fee is $5.00 per reservation Cemetery I00F  Full Coffin $900  Infant Coffin $375  Cremains $150  Burial Permit $75  Stone Permit $75 Oakwood  Full Coffin $525  Infant Coffin $375  Burial Permit $50  Stone Permit $50 6 Parks and Recreation offer a variety of discounts and promotions throughout the year for patrons visiting the Natatorium, Water Works Park, and Ci vic Center Pool. Staff proposes to continue providing the following discounts, specifically for the 2017 season. Water Works Park Pass Discounts: (Resident/Nonresident) Discounted Water Works park passes can be purchased during preseason when purchased by May 20, 2018. (Resident/Nonresident)  Purchase 1-3 season passes $65 each/ $70 each  Purchase 4+ season passes $55 each / $60 each Discounted Water Works park passes can be purch ased during the season when purchasing four or more. (Resident/Nonresident)  Purchase 4+ season passes $65 each / $70 each  Purchase 4+ monthly passes $25 each / $30 each Pass Perks per Season Pass Holder at Water Works Park  Two 50 percent off daily admission coupons for friends and family  $30 off a birthday party package of choice  10 percent off concessions and gift shop purchases  $10 off total cabana rental Natatorium Pass Discounts: (Resident/Nonresident) (Resident/Nonresident)  Purchase 4+ monthly passes $15 each / $20 each  Purchase 4+ three month passes $37.50 each / $42.50 each  Purchase 4+ annual passes $90 each / $95 each Pass Perks per Pass Holder at Natatorium  One free daily admission coupon for friends and family 7 Group Sales Water Works Park  10-29 people, $3 off per admission  30-99 people, $4 off per admission  100+ people, $5 off per admission  City of Denton Parks and Recreation camps $4.00 per admission Natatorium 7  10-19 people, $0.50 off per admission  20+ people, $1 off per admission  City of Denton Parks and Recreation camps $0.75 per admission Civic Center Pool Pass Discounts: (Resident/Nonresident) (Resident/Nonresident)  Purchase 4+ season passes $35 each / $40 each Promotions Water Works Park  “Flashback Fun” post wave pool opening, Monday-Friday, 4-7 p.m. 2016 season daily admission rates: (Resident/Nonresident) (Resident/Nonresident)  Under 48” $7/ $9  Over 48” $11/$13  On-going coupon, $2 off daily admission (cannot be used with any other discounts)  Mobile marketing, $1 hot dogs, 50 percent off concessions items and 50 percent off daily admission  On-duty aquatics staff incentive, 30 percent off concessions Natatorium  “Family Fun Night” Fridays, 4-7 p.m. Buy one get one daily admission (BOGO) Civic Center Pool  Father’s Day, fathers get in free with a paid admission  July 4, $1 admission Marketing and Customer Service  200 Water Works Park daily admission passes Employee Wellness Incentive  City employee wellness benefit, $50 All-Access Annual Pass to Water Works Park, Natatorium, and Civic Center Pool for each immediate family member  Denton ISD wellness benefit, $90 per employee for Annual Individual Natatorium Pass Sec. 22-28. - Facility and program fees. (a) The department of parks and recreation shall charge and collect the fees for the use of buildings and facilities and for recreational programs, services, and merchandise offered by the department in the amounts established in a "Schedule of Fees"* adopted from time to time by ordinance of the city council. (b) The director of the department may set, charge and collect fees for classes, trips, equipment, merchandise, police or supervisory services, and other programs, services, events and merchandise provided or offered by the department where no fee is established in the "Schedule of Fees"*. The fee or charge shall be based on the costs of providing the event, service, equipment or goods. (Code 1966 § 15-3.1; Ord. No. 91-055, § I, 4-2-91; Ord. No. 93-206, § I, 11-2-93; Ord. No. 99-311, § 1, 9-7-99; Ord. No. 2003-267, § 1, 9-2-03; Ord. No. 2004-262, § 1, 9-21-04; Ord. No. 2005-015, § 1, 1-18-05; Ord. No. 2009-224, § 1, 9-22-09) *Note— Said "Schedule of Fees" is not setout herein but is available for inspection in the offices of the city. AQUATIC ASSESSSMENT – IMPLEMENTATION PLAN 1 Implementation Plan April 2018 City of Denton Aquatic Division Assessment AQUATIC ASSESSSMENT – IMPLEMENTATION PLAN 2 EFFICIENCY and EFFECTIVENESS Goal: Create an efficient and effective service delivery model of aquatics for Denton residents. Strategy Tactics Group Responsible Start Date Performance Measure 1.1 Develop and implement a plan that upgrades the utilization of technology to capture and analyze data while improving customer service.  Evaluate the utilization of Point of Sale scanners to enhance customer service while more accurately capturing data related to visitation, in particular at Water Works Park. Aquatic Division Guest Services, City of Denton Information Technology, City of Denton Procurement, City of Denton Finance September 2018  Implementation of point of sale scanning system by May 2019.  Evaluate the introduction of I- pads for staff to more efficiently capture data for pool maintenance and incident and accident reporting to eliminate the double work that comes with capturing data on log sheets and reports and then transferring it to digital and electronic formats. Aquatic Division, City of Denton Information Technology, City of Denton Finance September 2018  Implementation of utilization of I-Pads by May 2019.  Evaluate the cost benefit of creating an interactive point of sale system for Water Works Park concessions – (i.e. Creation of an App that would allow for mobile ordering) Aquatic Division, City of Denton Information Technology, City of Denton Finance September 2019  Creation and “roll-out of” of a mobile ordering APP for concessions at Water Works Park by May 2020 AQUATIC ASSESSSMENT – IMPLEMENTATION PLAN 3 Strategy Tactics Group Responsible Start Date Performance Measure 1.2 Lifecycle replacement of the security system at The Natatorium  Replace existing the obsolete security system at the Natatorium with a new, state of the art system that to reduce incidences of false alarms and eliminate the labor costs associated with responding to false alarms. Aquatic Division, City of Denton Public Safety (Police and Fire Departments), Finance Department, Procurement September 2018  New Security System in place by January 2019. Strategy Tactics Group Responsible Start Date Performance Measure 1.3 Streamline Procurement practices  Engage the City of Denton’s Procurement Division to determine opportunities to reduce Aquatic Division expenditures Aquatic Division, City of Denton Procurement September 2018  Identification of opportunities that would either allow the Aquatic Division to purchase supplies and materials independently or have items specific to Aquatics stocked by Procurement at City of Denton warehouse. AQUATIC ASSESSSMENT – IMPLEMENTATION PLAN 4 Strategy Tactics Group Responsible Start Date Performance Measure 1.4 Work Order Management  Developing a Work Order Management system for Aquatics Maintenance that interfaces with the city’s umbrella financial system, the division will benefit by being able to collect data and develop performance measures that chronicle, the actual unit cost and task-time data for work being performed Aquatic Division, City of Denton, Information Technology, and Finance September 2018  Implementation of work order management system by May 2020. AQUATIC ASSESSSMENT – IMPLEMENTATION PLAN 5 REVENUE GENERATION Goal: To increase the cost recovery of the Aquatic Division to 70% Objective Tactics Group Responsible Start Date Performance Measure 2.1 Increase staff capacity to achieve cost recovery goals  The Aquatic Division should consider adding marketing and administrative/financial analysis resources - i.e. Marketing Coordinator ($35,000-$45,000) and Administrative Assistant/Financial Analyst positions ($40,000-$50,000). The addition of these positions should be considered within the context of the Parks and Recreation Department’s overall organizational structure. Parks and Recreation Department Director, Aquatic Division, Human Resources, Finance Department 2019  Evaluation of overall Department Organization Structure as part of Parks and Recreation Department Master Plan Update (Completion within one year from start of project)  The Parks and Recreation Department should consider adding the position of Revenue Development Manager, which will focus on the creation of earned income. Parks and Recreation Department Director, Human Resources, Finance Department, Parks Foundation 2019  Generate $100,000 in earned income and/or in-kind services in first year. Within five years, the goal of the position would be to generate $250,000. AQUATIC ASSESSSMENT – IMPLEMENTATION PLAN 6 Objective Tactics Group Responsible Start Date Performance Measure 2.2 Targeting Marketing Plan implemented by Marketing Coordinator  Develop a target marketing program for Water Works Park that focuses on increased group outings and dynamic pricing strategies Parks and Recreation Department, Aquatic Division January 2020  Development of target marketing program that results in a 20% increase in group sales Objective Tactics Group Responsible Start Date Performance Measure 2.3 Classify Programs and Services  Implement the Classification of Services Model that focuses on cost recovery based on level of benefit received for each core program area Parks and Recreation Department, Aquatic Division October 2018  Achieving of cost recovery goals established as part of Aquatic Assessment for each core program area Objective Tactics Group Responsible Start Date Performance Measure 2.4 Premium revenue generating services at Water Works Park  Evaluate the introduction of premium services at the Water Works Park, including cabana services, luxury loungers and interactive point of sale system for concessions Parks and Recreation Department, Aquatic Division October 2018  If feasible, achieve a 25% increase in cabana services and 10% increase in concession sales AQUATIC ASSESSSMENT – IMPLEMENTATION PLAN 7 Objective Tactics Group Responsible Start Date Performance Measure 2.5 Community Special Events  Develop and implement three community special events at Water Works Park that engages the community at-large and the private sector Parks and Recreation Department, Aquatic Division October 2018  Implement three community special events for Summer 2019 with each generating $5,000 in net profit Objective Tactics Group Responsible Start Date Performance Measure 2.6 Pricing strategy for Denton Independent School District employees  Consider offering City of Denton Employee Pricing for aquatic programs and services to Denton Independent School District employees. Parks and Recreation Department, Aquatic Division, City Council October 2018  If implemented, generate $25,000 in additional revenue in Fiscal year 2018-19 Objective Tactics Group Responsible Start Date Performance Measure 2.7 Implementation of real-time dynamic pricing strategies  Allow Denton Aquatic Division staff to implement dynamic pricing strategies on an as needed basis within the framework of the new pricing policy. Parks and Recreation Department, Aquatic Division, City Council October 2018  Increase cost recovery at WWP by 2% annually AQUATIC ASSESSSMENT – IMPLEMENTATION PLAN 8 POLICY AND PROCEDURE Goal: Align policy with the recommended operating models for each aquatic facility while continually seeking to manage the facilities utilizing best practice standards and procedures. Objective Tactics Group Responsible Start Date Performance Measure 3.1 Adopt Pricing Policy  Conduct a Worksession with City Council to discuss the development of a pricing policy that aligns the operating models of the three aquatic facilities based on the classification of services model. Parks and Recreation Department, Aquatic Division, City Management, City Council September 2018  Development of FY 2019-20 Aquatic Division budget in-line with Pricing Policy Objective Tactics Group Responsible Start Date Performance Measure 3.2 Maximize “new” concession stand revenue at Water Works Park  Adopt a “No Outside Food Policy” for Water Works Park to maximize the return on investment of the new concession stand Parks and Recreation Department, Aquatic Division, City Management, City Council September 2018  Achieve $400,000 in concession revenue during summer of 2019 AQUATIC ASSESSSMENT – IMPLEMENTATION PLAN 9 Objective Tactics Group Responsible Start Date Performance Measure 3.3 Update Joint Use Agreement between City of Denton and Denton Independent School District  Revisit the Joint Use Agreement between the City of Denton and the Denton Independent School District in an effort to better delineate roles, responsibilities, decision making authority and cost sharing. Parks and Recreation Department, Aquatic Division October 2018  Revised joint use operating agreement in place by October 2019. Objective Tactics Group Responsible Start Date Performance Measure 3.4 Improve Risk Management  Update aquatic personal protective equipment standards. Parks and Recreation Department, Aquatic Division April 2018  Update Lifeguard Manual by May 2018.  Develop and implement a written non-swimmer protection policy. Parks and Recreation Department, Aquatic Division April 2018  Update Lifeguard Manual by May 2018.  Create written, special needs patron safety guidelines. Parks and Recreation Department, Aquatic Division April 2018  Update Lifeguard Manual by May 2018. AQUATIC ASSESSSMENT – IMPLEMENTATION PLAN 10 Objective Tactics Group Responsible Start Date Performance Measure 3.5 Maximize utilization of aquatic facilities while reducing customer service incidents  Implement a formal allocation policy for the utilization of the aquatic facilities. Parks and Recreation Department, Aquatic Division October 2019  Formal Allocation policy in place upon ratification of revised Joint Use Agreement Objective Tactics Group Responsible Start Date Performance Measure 3.6 Task Time Analysis  Conduct a full task time analysis of Aquatic Division full-time staff to refine the cost allocation of full-time wages and benefits to the three aquatic facilities and potentially result in further reduction of the annual Denton Independent School District cost sharing payment. Parks and Recreation Department, Aquatic Division, City Council May 2018  Complete full task time analysis by April 2019 AQUATIC ASSESSSMENT – IMPLEMENTATION PLAN 11 Objective Tactics Group Responsible Start Date Performance Measure 3.7 Cost of Service Analysis  Conduct a full cost of service analysis including the cost allocation of direct, indirect and administrative and overhead costs across all functional lines of service. This analysis will more accurately allocate costs to the three aquatic facilities. Parks and Recreation Department, Aquatic Division, October 2019  Fiscal Year 2020- 21 budget will accurately reflect cost of service for the Aquatic Division. Objective Tactics Group Responsible Start Date Performance Measure 3.8 Customer Service Improvement  Eliminate “Coin-for-A-Key” locker system to improve customer service by eliminating the perception of putting a financial strain on the customer by charging small amounts for a minor service (“nickel and diming”) Parks and Recreation Department, Aquatic Division October 2019  Replacement locker system in place by Summer 2020.