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2002-142FILE REFERENCE FORM 2002-142 X Additional File Exists Additional File Contains Records Not Public, According to the Public Records Act Other FILE(S) Date Initials Amended b Ordinance No. 2003-121 OS/13/03 JR •�� • ��//�. , AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE MAYOR TO EXECUTE AN AQUATIC CENTER OPERATIONS AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TEXAS AND THE DENTON INDEPENDENT SCHOOL DISTRICT AMENDING AN INTERLOCAL AGREEMENT DATED MAY 15, 2001; AUTAORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton ("CITY") and Denton Independent School District ("DISD") have previously entered into an Interlocal Agreement dated May 15, 2001 (the "Interlocal AgreemenY') to provide for the conshucfion, maintenance and operation of an Aquatic Center consisting of a natatorium, an outdoor swimming pool, related aquatic facilities, and infrastructure necessary to serve said facilities (the "Aquatic Center"); and WHEREAS, THE CITY and DISD desire to enter into an Aquatic Center Operations Agreement which amends the Interlocal Agreement to provide for the maintenance, management, operation, and usage of the Aquatic Center after it is constructed, a copy of which is attached hereto and made a part hereof by reference (the "Operations AgreemenY'); and WHEREAS, the City Council finds that the Operations Agreement is in the public interest, NOW, THEREFOR, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The Mayor, or in her absence the Mayor Pro Tem, is hereby authorized to execute, on behalf of the City, the Operations Agreement. SECTION 2. The expenditure of funds as set forth in the Operations Agreement is hereby authorized. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the �7 �day of , 2002. C�-� � EULINE BROCK, MAYOR ATTEST: JE ER WALTERS, CIT SECRETARY By: ROVE AS LEGAL RM: HERBERT �UTY, ATTORNEY � Center Operetions Agrmtdoc AQUATIC CENTER OPERATIONS AGREEMENT THIS AGREEMENT is made and entered into by and between the DENTON INDEPENDEN'I' SCHOOL DISTRICT (hereinafter "DISD"), organized and existing under the laws of the State of Texas, and the CITY OF DENTON, TEXAS, a Texas Municipal Corporation (hereinafter "CITY"), acting by and through, and under the authority of their respective governing bodies; and WHEREAS, DISD and CITY have heretofore entered into that certain Interlocal Agreement dated May 15, 2001 to provide for the conshuction of an Aquatic Center (the "Interlocal AgreemenY'); and WHEREAS, DISD and CITY have entered into this agreement in order to amend the Interlocal Agreement to provide for the maintenance, management, operation, and usage of the Aquatic Center (ttte "Operations AgreemenY' or "AgreemenY'); and WHEREAS, DISD and CITY are local governmental entities both of whom have the authority to perform the services set forth in this Operations Agreement individually and who mutually desire to enter into this Operations Agreement, which is authorized by Chapter 791 of the Texas Government Code (Vemon 1994), Section 45.109 of the Texas Education Code, and Chapter 332 of the Texas Local Govemment Code, in order to ma�cimize the benefits derived from each taxpayer dollar; and WHEREAS, DISD and CITY desire to pool their resources, avoid unnecessary or duplicitous expense, and take advantage of maximizing economies of scale, resulting in cost savings to their respective taxpayers; and WHEREAS, the DISD and CITY agree that all payments made in connection with the govemmental functions provided for by this Agreement shall be made from current revenues available to the paying party and the payments received aze adequate and fairly compensate the parties for the services performed; and WHEREAS, the Interlocal Cooperation Act, now contained in Chapter 791 of the Texas Government Code (Vernon 1994), authorizes the DISD and CITY to enter into this Agreement for the purpose of achieving the governmental functions and providing the services represented by this collective, cooperative undertaking. NOW THEREFORE, the DISD and CITY, for and inconsideration of the premises and the mutual covenants set forth herein do hereby AGREE as follows: Den[on Independent School District & Ciry of Denton Operation & Maintenance Agreement Page 1 ARTICLE I INCORPORATION OF PREAMBLES All matters and recitations stated in the preamble of this Agreement aze true and wrrect and are hereby incorporated by reference into the provisions of this Agreement for all purposes. ARTICLE II PURPOSE The purpose of this Agreement is, as described in the preamble, is to evidence the agreement of the DISD and CITY to provide for the operation, management, maintenance, and usage of the Aquatic Center as defined in the Interlocal Agreement. ARTICLE III TERM The term of this Agreement shall commence on the date on which all parties hereto have executed this Agreement (the "Effective Date") and shall continue until terminated in accordance with the provisions of the Interlocal Agreement. ARTICLE IV DEFINITIONS The following terms shall have the meanings provided in the Interlocal Agreement and as amended as set forth below: Project- includes tlie operation, managemenc, maintenance and usage of die Aquatic Center ARTICLE V PROJECT OPERATION 5.1 Project Operation and Mana�ement. Subject to the terms and conditions contained in this Agreement, the City will be the managing partner of the Aquatic Center. This includes the direct oversight of programming, scheduling, fiscal operations, personnel, and the operation and maintenance of Aquatic Center. 5.2 Natatorium Committee. The Natatorium Committee (the "Committee") shall consist of five members. Two members shall be employees of the CITY appointed by the City Manager or his/her designee, and two members shall be employees of the DISD appointed by the Superintendent of Schools of the DISD. The fifth member shall be appointed by the mutual consent of the City Manager and Superintendent of Schools. The Committee shall not be responsible for the day to day operations of the Natatorium or the management and operation of the Natatorium, but shall be responsible for setting usage policies and procedures for the implementation of the allocation of usage of the Natatorium between the CITY and DISD. In Denton Independent School District & City of Denton Operation & Maintenance Agreement Page 2 setting such allocation of usage policies the Committee shall be subject to the Usage Polices set forth in Section 53 below. The Committee shall meet as needed, and will develop an annual schedule and time allocation for the Natatorium. Deviations from or additions to the annual schedule during the course of the year is an operational function affecting the annual operating budget. Therefore such deviations and additions aze under the control of and must be approved by the City as the managing partner of the Aquatic Center. Prior to the opening of the Aquatic Center, the Committee will meet and develop usage policies, procedures, rules and regulations that balance the needs of both the CITY and DISD. 53 UsaQe Policies. The Aquatic Center shall be operated in accordance with the following requirements: 5.3.1 The Outdoor Aquatic Facilities are intended for CITY activities open to the general public in accordance with such policies and procedures as may be adopted by the CITY. 53.2 The Committee's schedule of use of the Natatorium shall allow for flexibility for the student day and the school calendaz. 533 DISD is granted the right to use the Natatorium during the DISD school year (first day of schoo] through last day of schoo]) and at such other times sanctioned by the DISD for swim team meets, practices, swimming lessons and events. The DISD swim program may in the future be expanded to include such uses as Middle School iJIL swim team programs or Learn To Swim School Curriculums. After the annual schedule and time allocation is set by the Natatorium Committee, reasonable requests for additional hours for the swim team or other DISD sponsored activities must be approved by the CITY. 53.4 During periods of joint use of the Natatorium by CITY and DISD the Committee will provide for rules and procedures that will allow the DISD to maintain its statutory duties to protect students during school operation or school sponsored events as provided under Sections 37.105 and 37.124 of the Texas Education Code. 5.3.5 The schedule and time allocation must balance DISD's need to serve its students and meeting the goals of the Business Plan. The CITY will be allowed the opporiunity to provide programs and services to the community, and to generate revenue in order to offset operation and maintenance costs. 53.6 DISD may host swim meets provided any direct costs associated with hosting the event shall be paid by DISD. "Direct costs" shall mean those costs for providing officials or other personnel (excluding DISD employees) required by the UIL for hosting said meets. DISD shall reimburse CITY for direct costs incurred by CITY, if any, to staff swim meets such as ]ifeguards, building attendants, eta These costs will be scheduled and approved priar to the event by DISD and the CITY. DISD may utilize all parts of the Natatorium and sunounding grounds, including classrooms, multi-purpose rooms, etc. Denton Independent School District & City of Denton Operation & Maintenance Agreement Page 3 and available pazking at no charge for DISD sponsored events. DISD shall be responsible for storage of all equipmenUmaterials, etc. used for the facilitation of all DISD sponsored events at the conclusion of each event. This may include but not be limited to lane lines, timing mechanisms, tables, chairs, etc. 53.7 The CITY shall not be responsible for any interrupted or canceled use of the Natatorium due to circumstances beyond its control including but not limited to mechanical failure, weather, act of God, or other natural disasters. The CITY shall provide alternative days or portions thereof in the event of intemxption of use due to such circumstances if DISD deems it necessary to complete DISD sponsored activities. 5.3.8 When using the Natatorium, DISD's use includes access to and use of the Natatorium, classrooms, multi-purpose rooms, pazking azeas, and other azeas that aze associated with the particular DISD event or use, at no additional chazge above the cost allocation provided for in Section 6.2 and the Direct Chazges provided for in Subsection 5.3.7. 53.9 CITY and DISD shall be entitled to use each others timing systems, equipment, and furnishings at the Aquatic Center, subject to the provisions of 5.5.2. 53.10 The use of the Natatorium must at all times be in compliance with applicable laws, ordinances, and regulations pertaining thereto. 53.11 No alcoholic beverages shall be sold, consumed, or possessed in or at the Aquatic Center or on property surrounding the Aquatic Center that is owned by DISD or the CITY. 5.4 Other DISD Use: DISD may, subject to availability, and upon payment of applicable fees, use the Outdoor Aquatic Facilities for DISD functions or events or utilize CITY staffing and administration for DISD functions or events at the Aquatic Center. 5.5 Project Maintenance. 5.5.1 After completion of construction of the Project, notwithstanding each party's ownership interest in the Project, the CITY, as managing partner, shall be responsible for the direct operation and maintenance of the Project Note: The CITY shall operate and maintain the Aquatic Center in such a manner so as to ensure the continued safe operation of the facilities. The CITY shall be responsible for the daily pickup of trash and ]itter on the exterior grounds. The CITY shall be responsible for the repair and maintenance of the exterior grounds and landscaping for the Project Site, including but not limited to, all landscaped open areas, plants, shrubbery, trees, grass azeas, picnic areas or rest azeas, and imgation systems. The CITY shall be responsible for the repair and maintenance of al] improvements located on the Project, including but not limited to all buildings, permanent structures, ]ighting, sidewalks and any other paved or improved area. All landscaping shall be maintained in a neat and orderly manner at all times. The Denton Independent School District & City of Denton Operation & Maintenance Agreement Page 4 exterior grounds shall be kept free of trash , litter, weeds, and other material or plants not a part of the landscaping. All plant material shall be maintained in a healthy and growing condition as is appropriate for the season of the year. 5.5.2 Notwithstanding the above, DISD shall be responsible for the repair of any damage, other than ordinary wear and teaz, to the Aquatic Center, equipment and fiunishings directly attributed to DISD's use, including its patrons, invitees, officials, agents, and/or representatives. CITY shall be responsible for the repair of any damage, other than ordinary weaz and teaz, to the Aquatic Center, equipment and fumishings directly attributed to CITY's use, including its patrons, invitees, oFficials, agents, and/or representatives. ARTICLE VI PROJECT COSTS AND REVENLJES 6.1 Aquatic Center Revenue. Subject to the provisions of this Section 6.1, the CITY shall be entitled to retain all income and revenue generated by the Aquatic Center except for revenues raised by booster groups for competitive aquatic programs or revenues generated from a DISD competitive aquatic program event. Any revenue exceeding direct costs will be used to offset the operating costs of the Aquatic Center. Revenue from the operation and use of the Aquatic Center wil] be used to offset the operating deficit, if any, of the Aquatic Center. All revenues over expenses, if any, shall be retained by the CITY to be held in reserve for routine capital maintenance. The reserve may also be used for future project expansions associated with the Aquatic Center to be used at the sole discretion of the CITY. The Director of the Parks and Recreation Department will be responsible for setting all fees at the Aquatic Center, except for DISD supervised events. 6.2 Aquatic Center Costs. 6.2.1 Subject to the provisions of this 6.2, the CITY is responsible for the ongoing maintenance and operational costs of the Aquatic Center. Attached hereto and made a part hereof as E�chibit "A" is a preliminary estimate of operations and maintenance costs (the "Preliminary Cost Estimate") based on the Business Plan which is attached hereto and incorporated herein by reference as E�chibit "B" (the `Business Plan"). The Preliminary Cost Estimate is based on a typical full 12 calendaz month year of operation. At the end of the CITY's fiscal yeaz (September 30), the CITY will determine if there is a net profit or loss. If there is a deficit, the CITY will provide DISD with written notice of such deficit within 90 days after the end of the CITY's fiscal yeaz (December 31). DISD will reimburse the CITY for 50% of the deficit within 30 days after the beginning of DISD's next fiscal yeaz (June 30). 6.2.2 The CITY will include in the annual operating budget for the Aquatic Center, funding for minor repairs and maintenance of equipment and facilities. Routine capital Denton Independent School District & City of Den[on Opera[ion & Maintenance Agreement Page 5 maintenance, such as recirculation and filtration systems, landscape replacement, etc., will be funded from reserves of any revenues (over expenses) available at the end of the fiscal year. Non-routine capital maintenance, such as structural repairs, replacement of HVAC systems, etc. will be funded outside of revenue generated by the Aquatic Center through other fmancing sources deemed appropriate by the CITY and DISD. If the non- routine capital maintenance is related only to the outdoor aquaric facilities, the CITY will be solely responsible for the funding. If the non-routine capital maintenance is related only to the natatorium, DISD will be solely responsible for the funding. ARTICLE VII NAMING OF FACILITIES The CITY is authorized to name the Outdoor Aquatic Facilities and DISD is authorized to name the Natatorium. The naming of the Aquatic Center shall be approved by the CITY and DISD. ARTICLE VIII MISCELLANEOUS 7.1 Alterations: No party shall make any alterations to the Project without the prior written consent of the other party. Notwithstanding, neither party shall be required to obtain the other party's consent to perform sucl� party's required maintenance hereunder. 7.2 Books and Records: The City Manager shal] cause to be prepazed full and accurate books of accounts reflecting the condition of the business and finances of the Project (the "Project Records"). DISD shall have access to Project Records and shall be entitled to examine the same during normal business hours. At the end of each fiscal year, the City Manager shall cause to be prepared a statement of operations and a statement of financial operations (using generally accepted accounting principles) for the year. A preliminary statement of operations shall be provided to the DISD no later than 60 days following the last day of the prior fiscal yeaz. The final statement of operations shall be provided to DISD within 10 days after it is completed. 73 Joint Continued Use: Upon expiration of the fifty (50) yeaz term, DISD and CITY may enter into a mutually acceptable agreement regarding the terms and conditions for the continued joint use and operation of the Aquatic Center. 7.4 All other terms and conditions of the Interlocal Agreement not amended or revised by this Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the Denton Independent School District has caused this Interlocal Operations Agreement to be executed by its duly authorized President of the Board of Denton Independent School Dishict & City of Denton Operation & Maintenance Agreement Page 6 � � Trustees; and the City of Denton, Texas has caused'/ s Interlocal Operations Agreement to be executed by its duly authorized Mayor on this the ��t�day of , 2002. DENTONINDEPENDENT SCHOOL DISTRICT By: Rick Wolfolk President of the Board o rustees ATTEST: B . 5��..a-�� Jean B. Schaake, Member of the Boazd of Trustees CITY OF DENTON BY: ��-�-''ve'�Fi I�i�� Euline Brock, Mayor ATTEST: City Secretazy Approved as to legal form: Herbert L. Pr�Citv A�ev E•� Den[on Independen[ School District & City of Denton Opera[ion & Maintenance Agreement Page 7 � r 5.9 Proforma Projection �� Denton Aquatics Complex EXHIBIT R Proforma Projection �� r �� -� ATTENDANCE II Day Use Resident �� Regular �� ' Child �� _ Senior �� Day Use Non-Resident �� J Regular �� - cnad II _ Senior II Block Pricin9 �� " Annual Pass Resident �� Annual Pass NonResident �� Instructions/Lessons �� J Instructions/Lessons NR �� — Exercise/iherapy �� _ Exeroise/Therapy NR II Camps/Day Care �� -' Birthday Parties �� _ Special Events �� II SALES �� - Day Use Resident �� Regular �� Child �� ' Senior �� Day Use Non-Reaident �� Regular �� Child �� Senior II „ Block Pricing �� Annual Pass Hesident �� " Annual Pass Non-Resfdent II _ Instrudions/Lessons 11 Instructions/Lessons Non-Resident �� Exerciselfherapy �� — ExerciselTherapy Non-Resident �� _ Camps/DayCare �� Birthday Package �� " Special Events/Groups Package �� ., Gate Subtotal: �� II r Food and CaTering �� — aa��i II ,� Rentals II Sponsorship �I �� Combfned II Natatorium �� Walerpark �� Totals �� 2903�� 19090�� 25�787�� 1,303�� 5336�� 8,434�� 435�� 356�� 1.028�� z,sazjj 15845�� 2o,�asll i.aszp asaz�� ,os�ll - aea�� 3ez�� t,ozell e,ies�� zzao�� io,a�sll 1,939�� 7.135�� 11,013�� 4&4�� 5,352�� 6,644�� 872�� 1.163�� 310�� 397�� 1,204�� 535�� 2.083�� 375�� 178�� 694�� II es2�� ss2ll 4,500�� 4,460�� 6,960�� s,�s2�� i�.�as�� s,s�ill s2,�s�� n,s2ap ia2,sa311 II II II Psr Cap �� Per Cap �� 5.95 17,273�� 6.95 132,676�� 149,944�) 3.95 5,147�) 4.95 26,423�� 37,589�� 3.95 1,718�� 4.95 1,782�� 3,479�� 7.95 20,209�� 8.95 141,813II �62.023�� 5.95 8,839�� 6.95 31,845�� 40,482�� 5.85 2,880�� 6.85 2,655�� 5,535�� e,�so�� s,000�� 2a,�soll so.00 2a,2ae�� o.00 �2a,esa�� as,iooll eo.00 s,seo�� so.00 �o�,oao�� >>s,�soll ao.00 aa,aeo�� oll 34.8�11 50.00 15,500�� 0�� 15.480�� 45.00 54.180�� 35.00 18,725�� 72,905�� 55.00 20.625�� 40.00 7,120�� 27,760�� iao.00 o�� oo.00 eszoo�� ea,zooll 11.00 49.500�� 11.00 49.060�� 98,560�� o.00 s�,s2o�� io.00 ii�,aso�� s3,iioll 334,839�� 850.671 �� 1,185,516�) II II II o.ss is,eao�� i.s2 izs,2o�p �ae,oa211 o�� o.is i,s�sll �,67211 o.i2 s,�ss�� ozs 2�,zaz�� 2s.o�ell 5,000�� 16,000�� 21.000�� 24 - Oroee Sebe: �� " COST OF SALES �� Food and Catering �� Retall �I � Rental �� -� Cost of Sales: �� ., GROSS PROFIT II �� OPERATING EXPENSES �� . Personnel-Full �� Personnel-Part-time �� J Advertising I� - DueslSubscriptions �� , Medicel Supplies �� Office Supplies/Repair �� Pool Supplies II - Postage �� Printing �� r RepeiNMaintenance �� - Special Events �� , Park Supplies/'fresh Removal II . Telephone �� ' Training �� _. TraveVEntertainment �� Unifortns �� Utilities �� ' OPeretln9 ExPe�se:�� Net Operating Income: �� % ot Gross Sales: �� 362,447�� 1,018.788�� 1,381,24811 �� ,sia�� 54,zss�� s2.�nll oll ��II �II 565�� 3,186�� 3.753�� 8,478�� 58288�� 66,766�� a�,sss�� sso.soo�� ,s�a.as211 �� 208,845�� 174.138�� 382.983�� 102,409�� 149,586�� 251,995�� 10�000�� 35�000�� 45.�0�� 250�� 250�� 500�� 1�000�� 1�500�� 2.500�� 2.000�� 4.000�� 6.000�� so,000ll �.�II ��o.�ll � 1�000�� 3�000�� 4�000�� 2,000�� 7,000�� 9,000�� 27�500�� 60.000�� 87,500�� 10�000�� 35�000�� 45.000�� S.WO�� 6�000�� 11.000�� 3�000�� 5�000�� B•000�� 2�000�� 2�500�� 4.500�� 1�000�� 1�000�� 2�000�� 1.500�� 3.OD0�� 4,500�� 225.000�� 90.000�� 315.000�� ss2.soa�� sss.s�ap �,2ea.a�all (298,535)�� 323.526�� 25.004�� -ez.a�%�� a�.�s°c�� .e��l� -' �� ,. 25 ��.�� .. �'"��✓ �+'�� #� � � .�us� ness l��an � �1 Imusement Group, Inc. 3old River, CA EXECUT/VE S�` ' :+�RY _ . , Overview � The City of Denton, Texas and the Denton Independent School �` District will join together to provide the community with a much -- needed aquatic recreation complex that will serve the educational � and training needs of the District and the recreational leisure time needs for the City. This collaborative effort has resulted in the development of a premium indoor aquatic center and multi-purpose building (the "Natatorium") and a unique and entertaining outdoor water recreation facility (the "Aquatic Park"). The two facilities, to be developed and operated as one entity (the "Denton Aquatic Complex"), will benefit from a number of efficiencies and synergies that will likely insure the operational and financial success of the Complex. _ The Natatorium will operate on a year-round basis while the Aquatic Park will be open approximately 110 days in the late � spring through early fall. Q The Aquatic Complex will be operated by the Denton Department of Parks, Recreation and Beautification. The Complex will employ approximately five on a year-round, permanent basis. At peak operating periods, the Complex will employ as many as 63 I, . time staff: � . - :�r , � �. Ati�r�+d'�n�� h , �� :�� r� �'" ,�tl;. ,� , � �� . ' . ,F.....�. _t::v._,. I I� � 1 w' .�i�� . . : .. : . � :, .. : � .� , . . . - ... � � . . .� :� � �. M : .. i „,� � - . � M . i : �� +�- . s �: r �• . r � s �, a � � : �, � a' - : �`t ��r' �, � � � : �� ;� � � � �� r_ �� w� �?tl; 7�9:� �� Ir �i � Ik � - • • �� i � � �'��` � �'��„`��i w � �� :�� .'. �li i!� i i ., � ' �, � r , � a �u .. ° - '#.. k 1 �« �: � � `�'` � ,�-, ��w �►�n +r �.��; 4�,�� . .��r a► ,F, '� ��: ar � ,«� w r a+r�' w w�►: �. a 1 1 • -�• � _ •. - �, ., • • - c� : �� i Financial The Complex is forecasted to operate on a breakeven basis, which includes a positive balance to be used for contingency or future capital expansion. The goal is to provide the best possible facility , and programs at the Complex at the lowest cost to the community. � Limits of Financial Information - The operating revenues and expenditures in this document are � forecasts and should not be construed as actual future costs/profits. The forecasts apply to the first full year of operations only. All financial statements and other financial data are un-audited and for management purposes only. The estimated performance of the proposed Complex is based on an evaluation of the present economy of the area. Horizon does not take into account or make provision for any economic changes. As in all studies of this type, the estimated operating results are based on competent and efficient management and presume no significant change in the competitive position of the subject attractions in the immediate marlcet area, except as set forth in this report. The estimates are subject to uncertainty and variation. The estimates have been conscientiously prepared on the basis of available information and Horizon's in the industry. This report is an estimate. It has been primarily prepared for your use to assist in determining the market feasibility of the project. Neither our name, nor the material submitted may be included in any prospectus, press release, offering or representation in connection with the sale of securities or participation interests to other parties without our prior written consent. This report may not be disassembled or rearranged in any matter that would allow for presentation of only a portion of the report. 3 • • � • ; � �� •- ;• -� • � • � -•r • i 2.0 DENTON AQUATIC COMPLEX - SCOPE OF PROJECT 2.1 Management Standards Of Care 2.2 Denton Natatarium Features and Amenities 2.3 Denton Aquatic Park Features and Amenities 2.4 Projected Capacity Esl�[��_\�/11 f �_1=] � � � _ : . 4.0 PROGRAMMING 4.1 Natatorium Programming 4.2 Aquatic Park Programming 5.0 FINANCIAL DATA 5.1 Natatorium Operational Considerations 5.2 Natatorium Revenue Sources 5.3 Natatorium Pricing Plan 5.4 Aquatic Paric Operatianal Considerations 5.5 Aquatic Park Revenue Sources 5:6 Aquatic Park Pricing Plan 5.7 Operatians Expenses 5.8 Assumptions 5.9 Praforma Prajections 6.0 SALES & MARKETING 7.0 STAFFING & EMPLOYMENT 7.1 Staff Structure 7.2 Organizational Chart 7.3 Job Descriptions — Core Management Team 8.0 EXECUTIVE PROFILE 8.1 Aquatic Design Group 8.2 Whitewater West Industries, Ltd. 8.3 Horizon Amusement Group, Inc. 4 � CITY COUNCIL ��4tl�5�P�d2 °��3i@ �81'yf 8 §��n#¢t' a � Euline Brock...� .................. .................. ......... ......... .................... M y r ao BobMontgomery ...... .......a. ..5,..s...,,.,,.. .,....,,. .................o.........At Large Mark Burroughs ........ .................. .................. .......................... At-Large Raymond Redmon.... � ................. ............................ .s......,....... District 1 JaneFulton ..... ......... .................. ...................... ..............�....... District 2 Michael Phillips ......... .............�.�.. ..,,........,..,.� .................,....,... District 3 PerryMcNeil ............. .................. .................. .................F....,... District 4 Michael A. �c�r��f .... .................. .................. ................... City Manager �A,�'�,�, RECREATION & BEAUTIFICATION BOARD & C/TY STAFF The Parks, Recreation and Beautification Board act in an advisory capacity to the City Council. Board meetings are held once a month and are open to the public. These meetings offer citizens the opportunity of direct involvement with the Parks and Recreation Department's decision- making process and assist in conveying community needs. Teresa Andress Cassandra Berry Dale Yeatts Brandon Barnes ADVISORY BOARD CITY STAFF Geri Aschenbrenner Don Edwards Dalton Gregory Ed Hodney .................................................*,Parks & Recreation Director Janet Simpson ............................. Parks & Recreation Assistant Director John Whitmore�,,,,,...e..,,,.,.� ..............Superintendent of Leisure Services C� "...recreation Denton-sty/e is not just the relaxed passage of time, It's an active art form!" . I 1 The City of Denton and the Denton Independent School District are participating in a cooperative effort to provide the Denton community with a state-of-the-art aquatic recreation complex. An interlocal agreement has been executed between the City of Denton and the Denton Independent School District that establishes organizational roles in the development and construction of the aquatics complex. An operations agreement has been negotiated that affirms the City as the managing partner with responsibility for the completed project's business operations. The Denton Aquatic Complex will provide training and exercise for the students of the District while at the same time fulfilling a huge need in the community for quality family recreation and entertainment. The Complex also will serve as an altemative fitness venue for the people of the Denton area. It is the desire of both the City and the District to provide the people they serve in a fiscally responsible and prudent manner. �► ��+�l�t �i�� 4� r�a��l� From an historical perspective, the traditional municipal aquatic center with a competitive-style swimming pool or diving well requires a substantial subsidy from the community, oftentimes several hundred thousand dollars per year. ,. � At the other end of the aquatic recreation spectrum is the commercially successful water amusement parks, similar to Wet N' Wild, Raging Waters and nearly one hundred others that generally are very profitable. The Denton Aquatic Complex is a"right-size" family aquatic center thoughtfully designed with a varied mix of attractions and amenities. The Complex can be a source of recreation, pride and enjoyment without being a financial drain on the community. The challenge for the City of Denton and the DISD is to provide important educational and recreational opportunities at the Complex without operating at an annual operating deficit. The "right size" approach that the City and DISD have chosen means the proper mix of attractions, programs, cost controls and marketing efforts at the Complex will most likely insure a subsidy will not be required. The following represents the operational and financial considerations for the project. The Business Plan is based on the design development program that was prepared by Schrickel, Rollins and Associates, Inc. The project design represents the collective efforts of Schrickel, Rollins, VLK Architects, Aquatic Design Group, Horizon Amusement Group, and WhiteWater West, with substantial input from the City of Denton and the Denton Independent School District officials. 2.0 DENTON AQUATIC COMPLEX - SCOPE OF PROJECT ,f ��.��9: ., ;�, .. The Denton Aquatic Complex will be a multi-use facility combining state- of-the-art competition and recreational aquatic facilities with entertaining water attractions. The complex will have a broad appeal to the community. The end result is a unique recreational facility that if properly managed will be a popular and financial success for the Denton community. � �- The two key elements of the complex are the Denton Natatorium and �, Denton Aquatic Park. Following is a description of the features of each � entity: � The Denton Natatorium � � The two-story, 36,000 square feet Natatorium features will include: �° • A 25-yard by 25-meter pool �- � A 1,835 square foot instructional pool with small waterslide �. • Seating for 200 spectators • Class rooms and offices `� • Food service �` • Support facilities such as storage, lockers, showers, �, Denton Aquatic Park The outdoor aquatic center encompasses approximately three acres and �" includes: � • Two serpentine slides 3�/2 stories high • Continuous river � • Toddlers' pool �" • Volleyball — � Outdoor food service � • Shaded corporate picnic area �, • Support facilities • Ticket sales/support � * Retail and sundry carts �; � 2.1 Management Standards of Care `� The Denton Aquatic Complex will create a signature water recreation �- attraction that provides a fun, safe and wholesome experience for the �, community. Guests to the Complex can expect to receive the highest levels � of service while being made to feel welcome and appreciated. � The Complex will focus on high standards in the areas of safety, �. maintenance and guest service. Management and staff will strive to operate - 9 � 0 the Complex with service expectations that will set it apart from similar aquatic facilities in North Texas. It is the goal of Management to operate the -N Complex in a manner that will be a source of pride and trust for the .. Community. W 2.2 The Denton Natatorium - Fea#ures and Amenities The 36,000 square foot Natatorium sits at the top of the hill, rising 41 feet high. It will be seen from many miles away. Because of the profile of the building and the numerous activities and events occurring in the building, the Natatorium will be an icon for the community and for the region. The primary purpose of the Denton Natatorium is to meet the growing aquatic needs of the community through additional aquatic education and recreational facilities and programs. For the Districf, the Natatorium will be used to support the Physical Education and Athletic Departments by providing comprehensive programming designed to complement the educational mission of DISD. The Natatorium will be used extensively in the physical education curriculum and will be the venue for swim meets and other school-related aquatic competitions and events. For the Denton community, the Natatorium will serve as a gathering spot and recreation venue for the region. The Natatorium will provide on a year- round basis a venue for quality educational and leisure time experiences. These experiences wilf have a wide range of participatory and passive activities for all persons regardless of age, color, sex, skill level, abilities, or sport/activity interest, especially during the winter months. Additionally, the Natatorium is a convenient, safe and affordable location for activities such as Grad Night, school reward outings, senior-citizen outings, family reunions, birthday parties, "dive-in" movies, corporate outings and many other special events. N��r��riur� ��ur�� '�rn �f►tr�r� �c��C The centerpiece of the Natatorium is the 25-yard by 25-meter pool designed for competition and recreation. The primary appeal af the indoor pool for the general public will be to those interested in leam-to-swim programs, swim team practices/competitions, recreation swim and water therapy. The predominant use of the competition for the Denton Independent School District will be for training, teaching and recreation of students as well as for local and regional aquatic interscholastic competitions. 10 Because the competition pool is indoors and not subject to weather conditions it can operate on a year-round basis and conceivably could be open 24-hours per day. In reality, it will operate based on demand and is projected to be open 12-16 hours per day. R�er�ati�rr ��r�! The four foot deep, heated instructional pool will have approximately 1,835 surface square feet of water with a uniform depth of four feet. It will serve as a warm-up poof for swim meet competitors; will be a key part of the aquatics exercise program, provide a shallow water area for swimming lessons and serve as a recreation element for the general public (when not otherwise booked). The pool will include a 20-foot high water slide, a stepped entry area where toddlers may interact with swim toys, an area accommodating approximately 25 participants for water aerobics and exercise or for over 120 for public swimming. Guesf Amenities Locker/Changing Rooms—Male and female locker and changing rooms designated exclusively for Denton School District use; similar, but separate facilities are designated for the general public. Showers/Restrooms—Male and female facilities designated exclusively for DISD use; similar, but separate facilities are designated for the general public. Meeting Rooms/Storage rooms—One large meeting room and storage area designated exclusively for DISD; one large meeting room is designated for the City of Denton needs. Following is a complete list of the rooms. • Classroom • DISD Coach's office • Manager's office • Bleacher seating for 200 spectators (2"d floor) 2.3 Denton Aquatic Park Features and Amenities The Denton Aquatic Park, the outdoor recreation section of the Complex, will be open from May to September. When combined with the Natatorium, the two become a powerful, unique and enjoyable recreational experience for the region. 11 The Aquatic Park will include many of the most popular attractions in the water recreation industry. The attractions are designed to appeal to all ages and interests and will be specifically selected to stimulate repeat visitors. Serpentine Slides Each of the two body slides has its own personality and appeal. Utilizing the same tower as the speed slide, the 30-foot high slides are each approximately 250 feet long and will drop into a shallow pool. Riders must be a minimum of 48". Continuous River The 736-foot long continuous river will be one of the most popular attractions at the Aquatic Park. The 12-foot wide, three foot deep continuous river can accommodate as many as 600 guests at one time. The gentle current takes guests on a mellow ride in their own inner tube around the oval shaped channel. Waterfalls and geysers are incorporated into the meandering river to further enhance guest enjoyment. Activity Pool This area has an Aqua Play `�nrater jungle gym" which includes a variety of water contraptions housed on a multi-level deck connected by stairs, cargo nets and rope ladders. Explorers in the 2-10 years old age group will enjoy the interactive play with levers, wheels, pull chains, and sprayers. This zero-entry pool will house water buckets, mini-slides, fountains and "gadgets" in an 1 S' inch deep pool for the little tots. Corporate Picnic Area A key revenue opportunity for the complex is the business generated from catering to corporate and other groups. The Aquatic Park will feature two shaded pavilions each accommodating 250 seated-guests. The complex will cater a prescribed menu to the groups who use the pavilions. The Aquatic Park will provide a"turn-key" picnic package to its guests, which includes food, activities, lawn games, dancing and clean-up. The shaded, highly landscaped picnic area will be ideal for school outings, corporate picnics, birthdays and all other groups gathering. 2.3 Projected Capacity Natatorium Capacity 12 With its pools, meeting rooms, classrooms, bleachers and support facilities, the 36,000 square foot Natatorium has a theoretical capacity of 650 guests at a single point in time ("frozen" capacity). Realistically, because of the need to program and schedule activities that do not conflict or overlap, the anticipated capacity is 600. Aquatic Park Capacity Following are projected capacities for the water attractions: Contin.uous River 600 Slide Complex 200 Activity Pool 200 Corporate Area 500 Shade/lounge/grass seating 750 Total Frozen Capacity 2,250 Assuming the Aquatic Park will achieve its goal of 85,000 guests for the 110- day operating season, the average daily attendance of the park will be 772 over an eight-hour operating day. Aquatic Complex Combined Capacity It will be a rare circumstance when both the Natatorium and the Aquatic Park will achieve peak capacity simultaneously. Nevertheless, should this situation arise, it is projected the number of people that could be accommodated at any one time at the Complex is 3,300-3,500 at one time. 13 3.0 AVAILABLE MARKETS The Natatorium will draw primarily from its primary market, the area within a 15- mile radius of the Complex. According to the feasibility study conducted by William L. Haralson & Associates in 1998, there are approximately 250,000•residents within a 15- mile radius of the project. If current growth rates are applied to this number � then the market area could hold a population as high as 300,000 people by .. opening day. This area will primarily be the target zone for both the Natatorium and Aquatic Park. In addition, there is a student population of 27,000 at the University of North Texas and 3,500 at Texas Women's University, Denton. Each campus is approximately 15 minutes from the aquatic center. There are another 200,000 residents in the secondary market, the area in the15-25 miles radius surrounding the complex. Within the primary and secondary market areas for the Complex the constituencies include every type of youth, school, church or corporate group; local swim clubs, training and certification programs for all ages and skill levels; senior citizen programs, and recreational therapy for those requiring physical therapy. Both the Natatorium and Aquatic Park will serve the following constituencies within their primary and secondary markets. Denton Independent School District Neighboring School Districts Local and Regional Junior Colleges and Colleges Community Centers and Associations Parks and Recreation and Youth Organizations Seniors Water Polo Teams Synchronized Swimming Neighbofiood Associations Birthday Parties Stay-at-Home Moms/tots Aquatic Therapy Community Corporate and Group Outings In addition to the available markets listed above, the Aquatic Park will heavily solicit to those in the following market segments: Children 2-11 years Teens 12-17 years Corporate groups Parents 30-49 years Youth groups Birthday groups 14 4.0 PROGRAMMING 4.1 The Natatorium Programs The major areas for programming at the indoor Natatorium will include instruction, recreation, physical education, competitions, therapy and rehabilitation and Masters swimming. Following is a breakdown of programs that could be considered: lr��i�uc�i��l • Varsity Swim Team • Varsity Diving • DISD Physical Education and Swimming and Diving Programs • Leam to swim programs and certification for school age children • Leam to swim programs for general population by age group and levels • Lifeguard training and certification • Water safety • Snorkeling/scuba instruction • American Red Cross water safety training • National Pool and Waterpark lifeguard training program • Beginner Instruction Recreational � Lap Swimming � Recreation Swim • Aerobics/Aquacize • Senior Swim • Water Walking � Water Volleyball • Water polo � Senior Olympics/Seniorcize • Open Swim ��rrz�rslt�� y��r� + One Week Aquatic Safety Camp • One Week Aquatic Skills Camp ��% �"ri�r'r� � ��r�'r��ti�i�r�/Y�c�tl� �r� r�rr�r� • Swim Team Practice • Swim Clubs • Swim Meets • Synchronized Swimming � Water Polo 15 ,�x�r�i�� l ii�er��rv • Injury Rehabilitation • Arthritis Water Exercise � Hospital Physical Therapy ��r`�l ��r�t� r� +�rr�t�;� l�i�r�i� �a�k�� • Dive-In Movies � Private Company Parties • High School and College Buyouts � Senior Citizen Beach Bash • Mom and Tot's Day Out • Specia101ympics • Winter Theme Parties Bir�,�r�� r P�,�i�� • The Natatorium will serve the region as a safe, fun and convenient location to host birthday parties for elementary and middle school age children. The Natatorium will be the place where members of the community can brush-up on existing aquatic skills, leam new skills and where they will be provided with year round exercise opportunities. The Natatorium will be one of the few places in the greater Denton area where people can escape the winter weather, a distinct and important marketing and revenue opportunity. 4.2 Aquatic Park Programs Unlike the Natatorium, the Aquatic Park will not be programmed based. The essence of the Aquatic Park is to provide an entertaining, unstructured, safe, recreational experience for guests of all ages and interests. Nevertheless, during specific times of the day or week the park will be available for programs designed for certain segments of the community. These programs might include: • Water walking (lazy river) • Physical therapy and rehabilitation • Group events • Birthday parties S Family nights and barbecues � Summer and Inter-session camps 16 5. 0 FINANCIAL DATA 5.1 Natatorium Operational Considerations C`� . ,r r i�� The Natatorium will be open every day of the year with the exception of designated holidays and off-season maintenance periods. The Natatorium has been designed so that in the cool months the community may use it for exercise and recreation while in the hot months it can provide a respite from the heat for the Aquatic Park visitors while still being utilized for established programs. The Natatorium will open at 6am and remain open until 10pm Monday- Saturday and from noon to 8pm on Sunday. These suggested hours will remain flexible and will be adjusted to meet demand and programming schedules, such as instructional, swim team uses, block times, etc. The Natatorium will be an affordable and enjoyable experience for everyone in the greater Denton community, no matter their financial means. There are a variety of programs, activities and events with special pricing for both City of Denton residents and non-residents. The programming, events and hours of availability at the Natatorium will be carefully planned and considered to insure all groups have as much use as possible in order to fulfill the purpose for which the facility was built. A projected operating and programming schedule is represented in Addendum A. 5.2 Natatcrium Revenue Sources Total first year revenue is estimated to exceed expenses. Revenue is categorized from the following sources: `�i�k�# ��rte;��ri��: Regular Admission Child Admission Under 2 years Seniors Resident Non-resident 48" or higher Under 48" Free 60 years or older Must reside within the Denton City limits. Those who reside outside the City of Denton 17 Day Us�--This admission program allows use of the Natatorium for a single day. Total first full year revenue is estimated at over $50,000. Block Pricing—Use of the facility by organizations or groups for aquatic events or other activities that are closed to the general public. Pricing will vary depending on resident status and whether groups are charitable or for- profit organizations. Revenue in the first full year is expected to exceed $18,000. Annual Pass—Unlimited use of the facility for one year during designated public usage periods. First year revenue is estimated in excess of $33,000. Instructional�Six-lesson packages for public leam-to-swim programs, training, and all other aquatic instructional programs. Total first year revenue is estimated at over $50,000. Exercise/Therapy —Monthly fees for exercise and therapy programs. Total first year revenue is estimated at over $74,000. Birthday Packages—use of the Natatorium, use of parry rooms, party favors, and hostess. Offer 3 package options to allow parents the opportunity to do more or less depending on their budget and time availability. Total first full year revenue is estimated at over $49,000. Special Events/Group Packages—Natatorium use for events like Grad Night; Dive-in movies; Friday Night Swims; school and ��rm��y� outings. Total first full year revenue is estimated at over �5i��„ ��, Food/Catering, Rentals and Sponsorship $27,000 for the first full year. � �; . �� ,, . � �' , ,>: �° � As: , �., r at over 18 Natatorium Sources of Revenue Food/Catering Rentals/Sponsorship Day Use Special Events Block Annual Pass Birthday Parties ��. r �� ,�.• � �' Instructions/Lessons Exercise/Therapy 5.3 Natatorium Pricing Plan Ti��# T � ,��rnission Price Attendance ._ Day Use Resident Regular . $5.95 2,903 Child $3.95 1,303 Senior $3.95 435 Day Use Non-Resident Regular Child Senior Block Pricing Annual Pass Resident Annual Pass Non-Resident Instruction/Lessons Instruction/Lessons Non-Resident Exercise/Therapy Exercise/Therapy Non-Resident Birthday Special Events $7.95 $5.95 $5.95 $50.00 $80.00 $4p.00 $50.00 $45.00 $55.00 $11.00 $10.00 2,542 1,452 484 8,186 1,939 484 872 310 1,204 375 4,500 5,162 32,151 19 � +�_ _ ��,�t+� ��:rrke ��+�rational Cansiderations � �r��ir� �� :: The Aquatic Park will be open approximately 110 days per year. The Aquatic Park will be open on weekends in May and September and open daily from Memorial Day to Labor Day. ��ra�in� �-1r��ar�; The Aquatic Park's regular hours will be 10:30am to 7:OOpm. The park will operate additional hours for special events and programming. Hours will vary as situations and opportunities arise. Ad"rr�i��r"�n �� r1�in.�.' The Aquatic Park will have attractions, which appeal to a broad segment of the community. All demographic, economic and age groups will enjoy and want to experience the unique, diverse attractions. There are a variety of programs, activities, events and ticket offerings for both City of Denton residents and non-residents. The programming and events at the Aquatic Park will be carefully planned and considered to insure all groups have as much use as possible in order to fulfill the purpose for which the facility was built. 5.5 Aquatic Park Revenue Sources Total first year revenue is estimated at over $1,018,000. Revenue is categorized from the following sources: Ti�ke# ��+arie�: Regular Admission 48" or higher Child Admission Under 48" Under 2 years Free Seniors 60 years or older Resident Must reside within the limits of the City of Denton Non-resident Those who reside outside the City of Denton Day Use—This admission program allows use of the Aquatic Park for a single day. Total first year revenue is estimated in excess of $330,000. Block Pricin�Use of the facility by organizations or groups for aquatic events or other activities that are closed to the general public. Total first full year revenue is estimated at over $6,000. 20 Annuai Pass—Unlimited use of the facility for one year during designated public usage periods. Total first full year revenue is estimated at $230,000. Exercise/Therapy —Monthly fees for exercise and therapy programs. Total first full year revenue is estimated at approximately $25,000. Camps/Day Care—One week leaming camps for school-age children. Total first full year revenue is estimated at almost $90,000. Birthday Packages—use of the Aquatic Park, party favors, and hostess. Would not include the use of the Natatorium party room(s). Offer 3 package options to allow parents the opportunity to do more or less depending on their budget and time availabiliry. Total first full year revenue is estimated at over $49,000. Special Events/Group Picnic Packages—Aquatic Park use for events include Grad Night; Dive-in movies; Friday Night Swims; school and company outings. Total first year revenue is estimated at $111,400. Food/Catering, Retail, Rentals and Sponsorship Revenues are estimated to be close to $170,000 for the first year. Aquatic Park Sources of Revenue Food/Catering/Retai I Rentals/Sponsorshi P Special Events Birthday Parties Exercise/Therapy Camps/Day Care Annual Pass �ay Use lock 21 5.6 Aquatic Park Pricing Plan '��k�t '�v�� Admission Price Attendance Day Use Resident Regular $6.95 19,090 Child $4.95 5,338 Senior $4.95 356 Day Use Non-Resident Regular Child Senior Block Pricing Annual Pass Resident Annual Pass Nonresident ExerciselTherapy Resident ExerciselTherapy Nonresident Camps/Day Care Birthday Parties Special Events 5.7 Operatians Expenses $8.95 $6.95 $6.95 $70.00 $80.00 $35.00 $40.00 $100.00 $11.00 $10.00 15,845 4,582 382 2,230 7,135 5,352 535 178 892 4,460 11.149 77,524 Operations Expenses are estimates only. A Proforma Projection is detailed in Section 5.9 with projections of operations expenses for the Natatorium and the Aquatic Park. Personnel Full --- Includes salary, tax and benefit expense for five employees that will be the core management team for the Park and grounds on a year-round basis. Seasonal --- Includes wage and tax expense for part-time employees that may be on staff for all or part of the year. This will encompass all of the employees except for the core management team. Advertising --- Includes costs for radio, television, cable, newspaper, direct and other mediums advertising the Aquatic Complex. Insurance --- Includes expenses for minor guests injuries, medical reimbursements and minor settlement payouts. 22 Medical Supplies --- Basic medical kit supplies including bandages, gauze etc. to attend to minor guest injuries. Pool Supplies --- Pool chemicals, pool cleaning and maintenance supplies. Printing / Postage --- Annual pass printing, cash control supplies, brochure, employee manuals, advertising posters/coupons, marketing mailings. Repair/Maintenance --- Includes all supplies and tools to repair and maintain all areas of the building and groups within the Complex. Special Events --- Expenses related to special days events such as Grad Nite, dive-in movies, Christian Family Day, etc. Park Supplies / Trash Removal --- Restroom and janitorial supplies and the fee for trash removal. Telephone / Office Supplies / Dues --- Includes all subscriptions & dues. Training—Ongoing in-service training of seasonal and permanent staff. Travel-Auto reimbursement; reimbursement of travel to trade/industry events. Uniforrns-Employee uniforms. Utilities --- Water, gas and electric. 5.8 Assumptions Projected revenues and expenses are estimated based on reasonable assumptions extrapolated from similar aquatic facilities and the William L. Haralson feasibility study. Operating costs were projected accounting for labor, utility and other variable operating costs. Although based on historical empirical data, there is no assurance that costs will not exceed projected levels or that revenue will be as projected. Revenue projections are assumptions extrapolated in a similar manner. There is a key assumption that a marketing plan will be adopted and implemented at least six months prior to opening the facility. 23 � �' • . ;. . . ATTENDANCE Day Use Resident Regular Child Senior Day Use Non-Resident Regular Child Senior Block Pricing Annual Pass Resident Annual Pass NonResident Instructions/Lessons Instructions/Lessons NR ExerciselTherapy Exerciselfherapy NR Camps/Day Care Birthday Parties Special Events ! - • � . • ' � . . . ., � SALES II �� - Day Use Resident �� Regular �� Child �� ' Senior �� -- Day Use Non-Resident �) � Regular �� Child �� -� Senior �� _ Block Pricing �� Annual Pass Resident �� Annual Pass Non-Resident �� -- Instructions/Lessons �� Instructions/Lessons Non-Resident �� ExerciselTherapy II --� Exercise/Therapy Non-Resident �� _ Camps/Day Care �� Birthday Package �� `" Special Events/Groups Package �� Gate Subtotal. �l � �� Food and Catering �� -� Retail �� .�. Rentals �� Sponsorship �� , '� � �� Combined �� Natatorium �� Waterpark jl Totals II �� 2903�� 19090I� 25,787�� 1,303�� 5338�� 8,434�� 435�� 356�� 1,028�� 2,542�� 15845f� 20,746�� 1,452�� 4582�� 7,097�� 484�� 382�� 1,028�� 8,186�� 2,230�f 10,416II 1,939�� 7,135�I 11,013�� 484�� 5,352�� 6,644�� 872�� I 1,163�� 310�� 387�� 1,204�� 535N� 2,083�� 375�� 178�� 694�� 892�� 892�� 4,500�) 4,460�� 8,960�� 5,162�� 11,1491) 16,311I� 32,151 �� 77,524�� 122,683�� Per Cap �� Per Cap �� 5.95 17,273�� 6.95 132,676�� 149,944�� 3.95 5,147�� 4.95 26,423�� 31,569�� 3.95 1,718�� 4.95 1,762�� 3,479�� 7.95 20,209�� 8.95 141,813�� 162,023�� 5.95 8,639�� 6.95 31,845�� 40,482�� 5.95 2,880�� 6.95 2,655�� 5,535�� 18,750�� 6,000�� 24,750�� 50.00 24,238�� 70.00 124,863�� 149,100�� 80.00 9,680�� 80.00 107,040�� 116,730�� 40.00 34,880�� 0�� 34,890�� 50.00 15,500�� 0�� 15,480�� 45.00 54,180 � � 35.00 18,725 � � 72,905 � � 55.00 20,625 � � 40.00 7,120 � � 27,760 �� ioo.00 o�� ioo.00 ss,2oo�� ss,2ooll 11.00 49,500�� 11.00 49,060�� 98,560�� 10.00 51,620�� 10.00 111,490�� 163,110II 334,839�� 850,671 �� 1,185,516II �� 0.59 18,840�� 1.52 129,201 Nj 148,042�� 0�� 0.15 1,675�� 1,672�� 0.12 3,768�� 0.25 21,242�� i,��p s,000�� a�� ,cu�ll � � v Gross Sales: �j �'"' COST OF SALES �� .� Food and Catering �� Retail � � Rental �� '' Cost of Sales: �� .�. GR033 PROFIT �� u � OPERATING EXPENSES II -� Personnel-Full �� Personnel-Part-time �� Advertising �� Dues/Subscriptions �� Medical Supplies �� Office Supplies/Repair �� Pool Supplies �� -- Postage �� , Printing �� Repair/Maintenance �� ' Special Events �� Pa�k Supplies/Trash Removal �� Telephone �� " Training �� -- Travel/Entertainment �� Un'rforms II Utilities II � Operating Expense: �� .� Net Operating Income: �� °�6 of Gross Sales: II � � � 362,447�� 7,913�� 0�� 56511 8,478 � � 353,969�� ii �� 208,845 � � 102,409 �� 10,000�� 250�� 1,000�� 2,000�� 50,000�� 1,000�� 2,000�� 27,500 � � 10,000�� 5,000�� 3,000 �� 2,�� 1,000�� 1,500�� 22s,000 II 652,504 �� (298,535)�� -82.37%�� 'T' i 1,018,788�� 1,38�,248�� 54,265�� 62,177�� 837 � � 836 �� 3,186�� 3,758�'[ 58,288�� 66,766�� 960,500I� 1,314,482�� i� ii �� 174,138�� 382,983�� 149,586J) 251,995�� 35,000�� 45,000�� 250�� 500�) 1,500�� 2,500�� 4,000�� 6,000�� 60,000�� 110,000�� 3,000�� 4,000�� 7,000�� 9,000�� 60,000�� 87,500�� 35,000�� 45,000�� 6,000�� 11,000�� 5,000�� 8,000�� 2,500�) 4,500�� 1,000�� 2,000�� 3,000�� 4,500�� C1{�� _ 315,000�� 636,974�� 1,289,478�� 323,526�� 25,004�� 31.76%�� 1.81%�� 25 6. 0 SALES AND MARKETING Marketing: The Denton Aquatic Complex will fulfill a significant need in the community by providing a safe, enjoyable and exciting place to be entertained that is unlike any other in the area. To insure the facility receives maximum exposure and to insure the park meets its attendance and financial goals, the Aquatic Complex will employ a variety of advertising, sales and marketing techniques. Among the tools will be: Season Pass Promotion Joint Marketing Partnerships Corporate Sponsorships Media Promotions Direct Mail Corporate Picnics School Outings Church/Organization Events Youth Trips Family Nights Birthday Parties Private Buy-outs Swim Club Exchanges Clinics Dive-In Movies Horizon will prepare a marketing and sales calendar for Phase II of its assignment. Special events, promotions and group sales activities will be put in place so as to maximize exposure, excitement and ultimately usage (sales). ' �� "'� � �a�r Following are possible revenue sources that might be considered by the City of Denton and the Denton Independent School District as they contemplate the economics of the Complex. Corporate Sponsorship—Sponsorship fees are commonly paid by corporations or foundations for the right to name an attraction, building, stadium, arena, etc. The Denton Aquatic Complex has elements such as the Natatorium, the Aquatic Park and other attractions, buildings or meeting rooms which might prove attractive to the right business, trust or individual. A comprehensive marketing plan encompassing advertising, sales, promotions, publicity and direct mail will be designed to achieve the attendance goals. 26 7. 0 STAFFING & EMPLOYMENT Because the Denton Aquatic Complex is open on a year-round basis several key positions will be full-time management or support jobs. As a result there is the opportunity to attract and employ quality staff that otherwise might not be available in a seasonal environment. The Complex will employ seven full-time staff including an Aquatics Manager, Aquatic Specialist, Administrative Assistant, Aquatic Engineer, Custodian and two grounds crew. Generally speaking, these individuals will split their time equally between the two facilities. At peak staffing (July of each year) there will be as many as 63 employees at the park that are considered seasonal staff. At the lowest staffing period of the year (January) the Complex will employee approximately 31 part time employees. 7.1 Denton Aquatic Complex Staff Struc#ure ��c�use of the cost savings and syr��es of th� d��i a��•�ti�n +�� ti�e ind�,�r and outdoor parks, it would �� b�neficial tc� e�t�bli�h �n� �t�f� to run both the water park features and the competitive facility. As shown in the organization chart that follows, Horizon recommends a facility director be responsible for the entire complex. This will accomplish several objectives. With one manager supervising the complex, duplication of training and manpower will be minimized. With one person in charge of the financial and operational aspects of the complex, accountability and lines of communication and authority will be clear. Moreover, overstaffing or understaffing of the respective waterpark or indoor aquatic center will be less likely because the facility director will have the overview of proper staffing levels. This plan necessitates a budget, which delineates the indoor aquatic center and the waterpark as separate cost and profit centers. The following sample staff outline and sample job descriptions are based upon the one staff premise. STAFF OUTLINE I. Aquatics Manager II. Aquatics Specialist III. Aquatics Engineer N. Administrative Assistant 27 7.3 Job Descriptions — Core Management Team Position Title: Aquatics Manager Number of Supervised Positions: 35-50 immediate Subordinates: Aquatics Specialist, Aquatics Engineer and Administrative Assistant Summary: Responsible for the direction and management of all aspects of the Denton Aquatic Complex. Essential Functions: 1. Oversee the Denton Aquatic Complex including, but not limited to, the direction and philosophy of the program, staff training, purchasing, staff hiring and training, development and enforcement of the budget, facility schedules, special events, develop and enforce a policy handbook, coordinate all staff communications including regular meetings, facility cleanliness and health department code compliance and annual staff evaluations and safety audits. 2. Establish and oversee all Procedures, Policies and Standards of Care for the Complex. 3. Coordinate with the DISD and the City of Denton representatives for all events and programming. 4. Organize and maintain inventory lists of all equipment. 5. Coordinate regular staff development clinics and meetings. 6. Coordinate all aquatics outreach efforts to the community. 7. Represent the facility at all selected professional functions. 8. Coordinate regular facility, equipment maintenance, and staff schedules. 9. Perform other various duties as assigned. Conditions: • Function in a sports/recreationai multi-use facility • Prolonged standing/walking • Prolonged exposure to the sun • Non-traditional hours, including evenings, weekends, holidays and on-call Tools and Equipment: • Standard office equipment: telephone, fax, PC and software systems • PA system • Pool operations equipment • Pool testing equipment and chemical auditing procedures * Life-guarding equipment • Commercial video equipment • Colorado Timing Equipment 29 Minimum Qualifications: • American Red Cross Life-guarding • College Degree in Recreation, Education, Coaching or Business emphasis preferred • Knowledge of technical side af competitive aquatics • Knowledge of technical side of aquatic management • Five years experience in aquatic facility management • Certified Pool Operator (CPO) or Aquatic Facility Operator (AFO) certificate • Excellent written and oral communication skills � Experience with mechanical pool equipment • Certified Water Safety Instructor Salary Range: $51,147 to $68,182 Position Reports to: Recreation Superintendent, Leisure Services 30 Position Title: Aquatics Specialist (InstructionaV Exercise/ DISD Programs) Number of Supervised Positions: 35-50 Immediate Subordinates: Instructors, Coaches & Lifeguards Summary: Assist the Manager with all aquatic functions assigned. Develop and supervise all instructional programs including, but not limited to, staff training and schedules, lesson programs, water exercise programs, day care lessons, and all special programs deemed appropriate. Generate and coordinate all programming of events for the Denton Aquatic Complex. Essential Functions: 1. Establish Procedures, Policies and Standards of Care within the Programs areas. 2. Assist the Aquatics Manager in all duties as assigned including, but not limited to, managing the complex in the Manager's absence, scheduling, planning and coordinating all events and programs. 3. Program operations of the Denton Aquatic Complex including the staffing and communications necessary to run the programs. 4. Assist the Manager with the budget and submit budgeting plans for programming and events. 5. Direct regular customer surveys of all events and programs. 6. Represent the facility and staff in professional settings as approved by the Manager. 7. Responsible for developing and modeling leadership for all staff. 8. Perform other various duties as assigned. Conditions: • Function in a sports/recreational multi-use facility • Prolonged standing/walking • Prolonged exposure to the sun • Non-traditional hours, including evenings, weekends, holidays and on-call Tools and Equipment: � Standard office equipment: telephone, fax, PC and software systems • PA system � Pool operations equipment • Pool testing equipment and chemical auditing procedures • Life-guarding equipment � Commercial video equipment • Colorado Timing Equipment Minimum Qualifications: • Three years experience in running, marketing and developing aquatic sports events • Marketing experience in recreational programs 31 • American Red Cross Life-guarding Instructar • College Degree • Knowledge of technical side of competitive aquatics • Knowledge af technical side of aquatic management • Two years experience in aquatic facility management � Certified Pool Operator (CPO) or Aquatic Facility Operator (AFO) certificate • Excellent written and oral communication skills • Experience with mechanical pool equipment � Certified Water Safety Instructor Salary Range: $45,656 - $60,8$1 Position Reports to: Aquatics Manager 32 Position Title: Administrative Assistant (Admissions, Retail Sales, Corporate Sponsorships, Rentals, Grants, Marketing & Cash Control) Number of Supervised Positions: 35-50 Immediate Subordinates: Retail, Food Service, Cash Control & Marketing staff Summary: Under general supervision, is responsible for maintaining the safe, efficient and profitable operation of the Denton Aquatic Complex's gift shop, food service units, catering, rentals and tickets sales. Assist the Manager with all aquatic functions assigned. Essential Functions: 1. Establish Procedures, Policies and Standards of Care within the Admissions, Retail, Rentals, Marlceting and Cash Control areas. 2. Select, order and maintain inventory, pricing and policies regarding the in- park revenue sources. 3. Prevent potential accident situations by eliminating hazards and hazardous behavior. 4. Train and oversee staff at each revenue center. 5. Educate users about the revenue services. 6. Assist in organizing and conducting staff audits of revenue services. 7. Assist in maintaining the Aquatic Complex's revenue areas in a safe and sanitary condition. 8. Provide event support and supervision at the discretion of the management team. 9. Assist in the maintenance and care of the facility. 10. Prepare reports as needed or directed by the Aquatics Manager. 11. Ensure all appropriate health department policies are met. 12. Support instructional programs as needed. 13. Assist the Manager with all special events. 14. Perform other various duties as assigned. Conditions: • Function in a sports/recreational multi-use facility • Prolonged standing/walking � Prolonged exposure to the sun � Non-traditional hours, including evenings, weekends, holidays and on-call Tools and Equipment: • Standard office equipment: telephone, fax, PC and software systems • PA system • Cash register • Food preparation equipment • Cash receipt equipment � Commercial video equipment 33 Minimum Qualifications: • Retail and food service experience • Excellent written and oral communication skills • Supervisory experience preferred � Concession experience preferred • Staff training and evaluation experience. Salary Range: $32,490 - $43,326 Position Reports to: Aquatics Manager 34 Position Title: Aquatics Engineer Number af Supervised Positions: 5- 10 Immediate Subardinates: Pool Maintenance, Janitorial and Landscape staff Summary: Under general supervision, is responsible for maintaining the safe and efficient operation of the pools and grounds. Essential Functions: 1. Establish Procedures, Policies and Standards of Care for maintenance, janitorial and landscaping. 2. Maintain the integrity of the pools and their related equipment. 3. Regularly test and evaluate equipment's performance against established standards. 4. Ensure all policies and procedures regarding pool maintenance and equipment is followed. 5. Provide training as required. 6. Maintain the grounds so they are safe for staff and guests. 7. Prevent potential accident situations by eliminating hazards and hazardous behavior. 8. Train and oversee staff. 9. Prepare reports as needed or directed by the Aquatics Manager. 10. Perform other various duties as assigned. Conditions: • Function in a sports/recreational multi-use facility • Prolonged standing/walking • Prolonged exposure to the sun. • Customer service related functions � Non-traditional hours, including evenings, weekends, holidays and on-call Tools and Equipment: • Pool, Mechanical, Electrical and Landscape equipment • Standard office equipment: telephone, fax, PC and software systems • PA system • Commercial video equipment inimum Qualifications: • Experience with pool and mechanical equipment � Electrical experience • Experience with grounds maintenance and related equipment • Excellent written and oral communication skills • Supervisory experience preferred Salary Range: $45,656 - $60,881 Position Reports to: Aquatics Manager 35 8.0 EXECUTIVE PROFILE 8.1 AGIUAT�C DESIGN GROUP m Aquatic Design Group is one of the pre-imminent names in the aquatic - engineering field. Aquatic Design Group provides complete architectural, _ structural, mechanical and electrical design services for each aquatic program element within a designated project. ADG is experienced in �� competitive, recreation and leisure swimming pools; resort hotel swimming pools and water features; water park and amusement paric water rides and attractions; and fountains and decorative water features such as lakes, streams, cascades and waterfalls. Its experience in developing municipal pools, both indoor and outdoors, numbers in the hundreds. 8.2 WHITEWATER WEST INDUSTRIES, LTD. WHITEWATER WEST Industries Ltd. is the largest and most experienced builder of aquatic attractions in the world. The company offers the industry's largest selection of water park products including; body-slides, inner—tube rides, family raft rides, thrill rides, wave equipment, FlowriderT"', AquaPlayT^" Systems and Kid's Play elements. Whitewater is based in Richmond BC with regional offices in the United States, Europe, Asia and South America. The firm has been in business since 1981 and employs over 200 people. 11883 Silver Cliff Wey 8.3 HORIZON AMUSEMENT GROUP, I'NC. Gold River, CA 956�0 916) 6�,�5�1��' HorizonFamily�aitbi.com �#�i�l��l A�I��t1�NT ��+�UP ��. is a California-based theme, amusement, water park and family entertainment development and management company that provides tumkey management services from planning, designing, construction to training financial, operating and marketing management. The Company's principals have built and operated more aquatic parks than any other company of its kind. Here is a partial list of past projects/clients: Worlds of Fun Kansus Ciry, MO Occans of Fun Kansas City, MO � Waterworld USA Sacramcnto, CA , � �:�i��r .� � ��r�vaiian Watcrs t]r�Pau. NI California State Fair Saa•amento, CA - Wi1d VVater Adventures * Clm�is, CA �H &t H Ranch Hous[on, TX The Island af Big SurE :��'*M. Tcmpc. A�' �, -� ' Paradise island r �: �'?��F Sarr•amenrv, CA a��,. �� Raging Waters � Salt Lakc Ciry, UT �Wild Watcrs Befing, Chinp 36 � ADDENDUM A Schedule The proposed Natatorium Event Schedule included in the due diligence is for forecasting purposes only. The programming schedule is a best estimate based upon professional expertise. The hours of operation are from 6:00 AM to 9:00 AM daily, five (5) days a week Monday through Friday, Saturday 7:00 AM to 5:00 PM, forty-eight (48) weeks per year. Four (4�) schedules have been developed: �w r � � r� r Mondays through Fridays 6:00 AM to 7:00 AM Masters Swim Program Rent to other school districts — swim teams 7:00 AM to 9:00 AM Varsity Swim Team Therapy Sessions for other sports 9:45 AM to 11:00 AM High School PE Swimming/Diving � Elementary Swim Lesson Program Middle School Swim Program � Outdoor Education 11:30 AM to 1:00 PM High School PE Swimming/Diving Masters Swim Program Open Lap Swim for Adults Aqua-Aerobics 2:00 PM to 3:30 PM Varsity Diving Team Therapy Sessions for other sports Rent to other school districts — swim teams 4:00 PM to 6:00 PM Rent Club Swim Programs Swim Lessons 6:00 PM to 8:00 PM Rent Club Diving Programs Aqua-Aerobics Masters Swim Program Open Lap Swim 37 8:00 PM to 9:00 PM Water Polo Scuba Lessons Red Cross Programs Synchronized Swimming Saturday 7:00 AM to 9:00 AM Rent Club Swim Program Master Swim Programs 9:00 AM to 11:00 AM Rent Club Diving Program Swim Lessons 12:00 PM to 5:00 PM Open Swim / Parties ��r�rra�r .��n� � thr�u fi� �,u �t�t �� Monday through Friday 6:00 AM to 7:00 AM Masters Swim Programs 7:00 AM to 9:00 AM Rent Club Swim Program Summer League Swim Team 9:00 AM to 11:00 AM Rent Diving Program Swim Lessons Aqua-Aerobics 12:00 PM to 4:00 PM Open Swim Day Care Camps _ 4:00 PM to 6:00 PM Rent Club Swim Programs � Summer League Swim Team -� 6:00 PM to 8:00 PM Rent Diving Programs �, Masters Swim Programs � Swim Lessons Aqua-Aerobics � 8:00 PM to 9:00 PM Water Polo _ Synchronized Swimming Scuba Lessons M Red Cross Programs � �- 38 � Open Lab Swim Saturday 7:00 AM to 9:00 AM, Rent Club Swim Program Master Swim Programs 9:00 AM to 11:00 AM Rent Club Diving Program Swim Lessons 12:00 PM to 5:00 PM Open Swim / Parties Lane Usage and Availability The total swimming lanes available in the set up of the pool is 10 lanes. Consideration must be given to pool depth and the diving area when scheduling programs. Two lanes (#1 and #2) are available in the shallow end (4 to 5 feet) of the pool. Four lanes are used for diving activities when scheduled. During diving and shallow end pool scheduled programs there will be 4 lanes avaitable for other use. Lane availability is based upon the schedule outlined in this memorandum. This schedule does not take into consideration day-to-day fluctuations ar schedule changes, such as cancellations, time/day gaps between program sessions or inability to initiate program(s). Additional space m�y be available due to schedule/program variance. � City of Denton Map & Artist Renderings: T'1n'wf-rr'w A reti� nf-�ren T:rs..l.. 40