Council PKT 01-26-2008CITY OF FEDERAL WAY CITY COUNCIL AND MANAGEMENT TEAM
Annual Strategic Planning `Retreat
Saturday, 26 January 2008 8:30 a.m. — 4:00 p.m.
Community Center, Senior Lounge
876 South 333rd Street, Federal Way
AGENDA
THIS MEETING'S GOAL.
While preparing for this Retreat, Council members expressed, in various ways, a common interest
in the sustainability of Federal Way. "Sustainability" was discussed in terms of physical
structures, the natural environment, jobs, and human and organizational relationships. To address
the Council's interest, the agenda is structured to identify and discuss strategies that capitalize on
recent progress in these four areas, and continue the work of strengthening the community's
sustainability.
NOTE: Refreshments will be served beginning at 8 o'clock so come early to enjoy them and be prepared
to begin the; meeting precisely at 8:30.
IV
8:30 Welcome! Review Today's Purpose
8:35 Review Agenda and Ground Rules
8:40 A Review. and Assessment of 2007
■ What were our most important accomplishments in 2007?
■ What factors produced these accomplishments?
■ Was anything not as successful as we expected? If so, what
was it and what factors prevented or limited success?
9:05 The City's Mid- and Long-term Financial Outlook
■ To set the stage for today's discussions, Iwen will present
the mid- and long-term outlook for the City's finances.
■ What does this financial picture indicate about challenges
facing the City and choices available to us?
Mayor Jack Dovey
Jim Reid
Council/Mgmt. Team
Iwen Wang/Everyone
(Attachment 1)
V
VI
9:45 Sustaining the Community Physically
The Community Center
■ As the community center comes upon its first anniversary,
what are some of the themes or lessons learned about
opening and operating it?
■ What are the Council's interests in implementing its business
model and sustaining its programs and services?
■ What are we currently doing to achieve our interests?
■ What other strategies might we consider to achieve them?
The Performing Arts Center
■ With completion of the feasibility study, what issues must
we address in considering a performing arts center for
the community?
■ What is or should be the timing for considering the issues
and making a decision?
Additional Issues
■ Are there other issues related to the community's physical
sustainability, such as the future of the Dumas Bay Center,
that should be addressed or highlighted?
11:15 break
11:25 Sustaining the Community Environmentally
■ As part of the mid -biennial budget adjustment, the Council
authorized the purchase of hybrid cars and allocated
$80, 000 for the development of a "Green City" strategic
plan. In 2007 Mike Park attended a U.S. Mayors' summit
in Seattle on `green initiatives. "
■ What specific ideas might be considered in the strategic plan?
■ What issues and factors, such as costs or community
involvement and support, should be considered?
12:15 lunch
Donna Hanson/Everyone
(Attachment 2)
Neal/Everyone
(Attachment 3)
Everyone
Ken Miller/Everyone
(Handouts at Retreat)
VII. 1:00 Sustaining Federal Way Economically Everyone
■ We are making our vision for downtown a reality. Are there
other things we are interested in doing to sustain economic
vitality in downtown and throughout the City, including
helping to sustain small and ethnic businesses or attracting
new businesses to the City ?
Vill
IX.
X.
2:00 break
2:15 Sustaining Community and Organizational Relations
Communicating Our Vision Jack/Everyone
(Attachment 4)
■ What are we doing well when communicating our vision to
our fellow citizens and to business and community groups?
■ What tools are available to communicate our vision and
demonstrate progress in achieving it?
■ What might we do to be even more effective in communicating
our vision and the things we are doing to achieve it to them?
■ Of these ideas, what might Council members do as a team and
individually to communicate our messages to the public?
Coordinating with Other Governments Jack/Everyone
■ In what ways can we help the School District, Lakehaven and
the Fire District achieve their interests, and how do we need
them to do to help us achieve ours?
■ Since we are all working on behalf of the same general
constituency, are there ways to combine our efforts to be more
efficient and cost-effective, particularly in a time of declining
revenues?
■ How do we assess other relationships, such as those with our
federal and state legislative delegations, or our sister cities? Is
there anything more we need from these relationships, or do we
need to change how we approach them?
Additional Issues Everyone
■ Are there other relationships that affect or influence our ability
achieve our goals that we should discuss?
3:40 Other Issues on the Horizon Everyone
■ During the interviews with Jim Reid, Council members voiced
interest in a wide range of issues. In this brief discussion we
will `put on the table" the handful of issues that we think may
require the City's attention and action in the next 3-5 years.
3:55 What are We Taking Away from Today 's Meeting? Everyone
4:00 adjourn
c 'financial Position Update
Federal Way City Council Retreat
January 26, 2008
Lakota Park joint development (2008/09)
■ Performing Arts Center (2009)
■ Green -city Strategic Plan implementation (2009)
■ LIFT investments city match (2009)
Facilitate public uses/offices in city center (2009)
■ Maintenance facility (2012)
■ Regional jail (2012)
■ Existing facility up-keep/preservation
■ Sacajawea Park
■ Camp Kilworth master planning
■ Affordable Housing
2
Demands on Resources (continuAa)
■ Class/Comp study implementation cost
■ Staffing level concerns
■ Support for not -for -profits (historical, cultural, arts, human
services....)
■ Neighborhood and small business development
* Community Center subsidy
■ Dumas Bay Center subsidy
-03
Financial C-/apocity
Operation:
❑ Structural gap between General Fund revenues and expenditures,
if managed carefully, could be filled by utility tax transfer up to
2014.
Capital:
❑ Reduced availability of utility tax.
❑ Increasing reliance on REET, which is more susceptible to
economic changes and less predictable, for capital purposes.
■ ong-`Fe m:
❑ Caution on managing operating budget with utility tax being a
limited resource.
❑ Depend on the results of economic development efforts, new
operating costs will be needed to support the growth.
❑ New operating and capital resources likely will be needed to
meet new demands on resources.
4
Firow Federal Way Compare
Jurisdiction
Kent
Population
86,660
2007 Sales Tax
Receipts
$ 24,339,404
rr
Property
Tax Rate
$ 2.56
Value
$ 10,265,869,683
0r Property:
Tax ReceiptsPro
$ 26,210,870
I
p-
$ 50,550,274
Renton
60,290
20, 342,171
2.88
8, 370, 801, 805
24, 031,181
44, 373, 352
Auburn
Tu kw ila
50,500
18,000
17,617,191
19, 280, 840
2.73
2.84
5,790,590,299
3, 947, 933, 512
15,730,875
11,177, 715
33,348,065
30,458, 555
Federal Way
87,390
13,028,680
1.14
8,011,615,599
9,098,370
22,127,050
Burien
31,410
4,962,626
1.51
3,470,451,166
..........................
51183,331
4,675,386
10,145,957
Des Moines
Milton
Pac if is
29,090
, 520
L6,055
2,149,152
883, 933
F= 865,532
1.81
2,619,389,509
6,824,538
1.68
1.58
656,461, 848
519, 940,406
1,098,762
1,982,696
955,358
1, 820, 889
Property Tax represent total tax revenues without adjusting for different city
services or voter approved taxes.
2006 Per Capita
General Fund Revenue*
Average Population: 38,468
Average GF Revenue: $34,4951053
Per Capita GF Revenue: $815
FW Population: 8500
FW GF Revenue $33,9629768
Per Capita GF Revenue: $396
*For better comparability the General Fund
revenues are adjusted to exclude fire and
library costs for jurisdictions providing those
services.
w-
Sky komis l
Tukw ila
Issaquah
Hunts Point
Medina
Snoqualmie
Seattle
Seatac
Woodinville
Redmond
Bothell
Auburn
Yarrow Point
Clyde Hill
Kirkland
Bellevue
Mercer Island
North Bend
Renton
Kent
Algona
Black Diamond
Sammamish
Beaux Arts Village
Enumclaw
Pacific
Carnation
New castle2
Duvall
Kenmore
Shoreline
Burien
Normandy Park
Lake Forest Park
Des Moines2
Maple Valley
Covington
Federal Way
$500 $1,000 $1,500 $2,000 $2,500
Amounts are averaged over 10 years and excluding utilities/enterprise funds.
Federal Way 25, 785, 931 5,548,286 135, 015, 755 140, 564, 041 5.45
Kent
54, 325, 201
10, 694, 099
319, 624, 040
330, 318,139
6.08
Renton
36,111, 852
3,346,980
151, 057, 754
154, 404, 734
4.28
Auburn
35, 369,194
472,380
46, 568,191
47, 040, 571
1.33
Tukwila
29,430, 569
1,333,080
27, 220,190
28, 553, 270
0.97
Operating Budget
$60
$ 50
$40
$ 30
$20
$10
$0 -
Utility Tax Transfer Support General/Street M&O
Operating Revenue -- Base General/Street
Total General/Street Expenditures
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Baseline Assumptions
...does not include any new programs or staffing changes.
Sales Tax
$ 12.41
33.01 %
$ 13.42
$ 15.47
2.55%
M&O Utility Tax (Including Prop 1)
2.12
5.64%
6.59
15.46
22.461/6
Property Tax
8.88
23.63%
9.16
10.01
1.56%
Gambling Tax
1.36
3.63%
1.55
1.55
0.00%
CJ Sales
1.95
5.20%
2.25
2.85
4.42%
Street M&O Fuel Tax
1.19
3.16%
1.18
1.18
0.00%
State Shared Revenues
1 16
3.09%
1.16
1.52
5.17%
Franchise and License Fee
1 11
2.95%
1.29
1.63
4.33%
Permit/Development Services
3.23
8.60%
2.97
3.27
1.69%
Interfund Service M&O
0.63
1.67%
0.68
0.81
3.23%
Other Services
1.63
4.33%°
1.28
1.28
0.00%°
Misc Fees
0.94
2.50%1
1.01
1 1.01
1 0.00%
Fines & Forfeiture
0.97
2.58%
1.24
1.35
1.56%
Overall Revenue Growth Rate
OperatingGeneral
Wages
$ 37.59
19.21
100.00%1
53.88%
$ 43.76 1
23.62
$ 57.38
29.88
1 5.19%
4.00%
Benefits
5.16
14.48%
6.83
11.77
9.509%
M&O supplies
1.17
3.29%
0.97
1.03
1.000/1
Services (utility, repair and maintenance)
5.18
14.52%
5.61
6.70
3.00%
Intergovernmental (Jail, 911, KC, WSDOT)
3.65
10.23%
4.42
5.92
5.00%
Depreciation/Replacement Reserve
1
1.28
3.60%
1.77
2.11
3.00%
Total
$ 36.65
100.00%
$ 43.21
$ 57.42
5.48%
Annual Difference 1
$ 1.94
$ 0.54 1
$ (0.03)
9
Utility Tax Allocation
$20
__-
■ Conymnity Center/KJP
$18
■ Add'I GF Transfer
$16
a, proposition 1 Utility Tax
$14
Project M & O Utility Tax — — —
$12
Capital Utility Tax
$10
-
$8
$6
- - --
$4
- -
$2
$0
-
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
m
Change in Uses of Utility Tax
2007 Captial vs. M&O Utility Tax
2014 Captial vs. M&O Utility Tax
Note: Utility tax is general purpose revenue and is typically used for operating
purposes by Washington Cities.
11
Past and Projected Capital Soucces
... City portion only
$18
$15
$12
$9
$6
$3
General Fund 1-Time
m Park/Trail Levy
■ New Fuel Tax
Arterial Street Fuel Tax
r Capital Utility Tax
REET
$0
W - -- -
��@1
F
0
2001 2002 2003
2004 2005 2006
2007
2008 2009 2010 2011 2012 2013 2014
12
FO)ast and Pro ected City Capital Sourceg
• --- . and Potential Allocation
Capital Utility Tax
$ 10,018
$ 5,575
$ 6,348
$ 6,708
$ 6,569
$ 6,928
$ 6,828
$ 6,222
$ 3,901i
$3,880
$ 3,1323
$ 3,054$2,568
BEET
New Fuel Tax
6,895
-
2,555
-
2,852
-
3,079
-
4,696
91
5,500
252
4,899
475
3,300
475
3,300
475
3,300
475
3,300
475
3,300
475
3,300
475
3;300
475
Parkl7rail Levy
9
10
10
9
10
10
10
157
159
181
163
166
168
10
M isc Revenue
389
220
717
334
186
129
4,035
147
149
162
169
187
189
192
Total City Sources
T7,312
8,359
9,926
L 10,130
1 11,532
12,819
1 13,245
1 10,301
7,989
1 7,978
1 7,930
7,181
1 6,934
6,545
Potentlai A/tocation
Capital -- DT & LIFT M atch
-
-
-
-
3,050
2,771
500
1,500
1,000
1,000
1,000
-
-
-
Capital -- Facilites/PAC
-
-
-
-
-
-
-
-
4,792
925
925
925
925
925
Capital -- Park&Rec
-
-
950
1,250
409
480
1,646
344
1,878
1,657
1659
1,661
916
757
Capital --TIP
-
2,084
2,053
1,625
2,423
1,143
2,975
2,975
1,971
2,018
2,096
2,177
2,262
W2,051^
Capita[ -- Overlay
987
1,007
1,100
1,194
891
891
1,400
1.800
1,496
1,544
1,621
1702
1,787
1,576
Capital--EmergencyEq
-
1,381
-
-
-
-
-
-
Capital --SLM/Facility
-
-
-
-
-
-
400
-
-
-
Debt Service
4,749
4,485
15,863
5,532
4,452
3,618
10,943
1,204
1,205
1,206
1,207
1,208
1,209
1,209
Subtotal Committed
5,736
7,576
19,966
9,601
11,224
8,903
19,245
7,823
12,341
8,350
8,507
7,673
7,098
6,519
Current Balance
11,575
783
(10,040)
529
308
3.917
(3,000)
2,478
(4,353)
(372)
(577)
(491
(164)
26
Cumulative Fund Balance
11,575
12,358
2,318
2,847
3,155
7,072
4,072
6,550
2,197
1,825
1,247
756
592 1
618
Note: 2001 utility tax and REET figures include amounts set aside for the early retirement of 1993 Celebration Park acquisition bond of
$11.3 million in 2003.
13
Near -Term Strategy
■ Continue to use utility tax for operation purposes
■ Manage and stabilize expenditure growth
■ Maintain transportation/overlay investment levels
■ Establish predictable, sustainable parks/recreation facility
investment level
■ Continue investment in economic development including
setting aside LIFT matching fund
■ Explore sharing common government services with other
local governments
■ Explore parks and traffic impact fees
14
Long -Term 'Broad based business expansion & diversification
• Stable staffing level & benefit costs
■ Economic development in and beyond the city center
■ Increased activities from existing businesses
■ Diversified business base: mixture of different type of
services, retail, offices and other uses that would increase day
and nighttime populations
15
Kisks/Challenges
■ The projections do not allow expansion in staffing or service
levels
■ In addition, increased service demands from increased
development activities may not be fully addressed
■ Timeline to realize gain from economic development efforts
is uncertain
■ Potential slowdown of regional economy
■ Manage labor contract costs/general wage increases
16
BalancingTools Available to Council
.. this is simply a list of options available if and when needed, staff is not advocating
or suggesting Council to take action.
■Operating and Capital Purposes:
❑ Property tax lid lift
❑ Admissions Tax
❑ Business & Occupation Tax
❑ Additional utility tax *
❑ Form additional special districts (& access to
additional property tax)
❑ Adjust user fees
❑ Combining/sharing common governmental services
❑ Service reductions and/or reprioritization
* Requires simple majority voter approval.
17
Capital Funding Tools
Additional Revenue Options for Capital
Bonds (supported by voter approved special levy)
Special assessment or business improvement areas * �`
Impact fees
* * Requires super majority voter or property owner approval.
18
[Mrs,get
Process
Action
[Mrs,get
Process
• i
■ General overview of long-term financial Council Retreat January 26, 2008
■ Council discuss priorities
® Customer service survey Communitywide Spring 2008
■ Review survey findings Council study April/May
■ Review updated financial projections session
■ Council provide policy directions
■ Department develop proposed budget Staff June —August
■ Community outreach Civic/neighborhood August -
group meetings September
■ CM Proposed Budget to Council Council regular October 7, 2008
meeting
19
19
Questions?
20
FEDERAL WAY COMMUNITY CENTER: COMPARISON OF 9-MONTH ACTUALS TO THE BUSINESS PLAN
This Table provides a comparison of the actual financial
results for the first nine months of Federal Way
Community Center (FWCC) operations with the
adopted Business Plan.
The Business Plan projected
subsidy of around $112,8921
however, the 9-month actual
difference of nearly 270k.
an operating deficit or
for the 9-month mark
is about $382,460, a
For the first full year of operations, the Business Plan
projected a total subsidy of $198,405 and $289,994 for
Year Twoz. We are forecasting an actual subsidy of
about $480,000 for year one and $530,000 for year two.
In comparison, the last annual subsidy for the Kenneth
Jones Pool was around $250,000 (budgeted deficit was
$31 %000).
The City Council designated 1% of the City's utility tax
to cover debt service and support the FWCC. In 2007,
that portion of the utility tax generated $1.5 million.
After deducting the debt service payment of $913k, the
balance of $587k is available for the FWCC's
operations, which would be sufficient to provide
anticipated subsidy in the foreseeable future.
While we believe there will be sufficient funds to cover
the revised operating subsidy, it may leave little or no
room to provide replacement and renewal reserves,
which was recommended at a level of $120,000
annually in the business plan. The reserve fund will
become increasingly important over the next few years
in order for the FWCC to sustain its customer base and
maintain its operation results.
Per Business Plan =
Actual
9-Mo `
9-Mo
Community? Center
Unit Price
`,Quantity
Planned $
Avg Price
Quantity
Actual $
Revenues
- � .R..
u_u
310
418,500�
8 $4.5_
��.......
176
2173481
Daily Admission (360_days)
$5
Generic Annual Passes"
$401
133899
5565322�
_
$534.43�
899
399,443
Youth Athletic Programs
-
57
Open Gym/Indoor Playground
Aquatics Programs-Lessons/Classes
106,680
96,900
Childcare Fees (average daily hours)
$2
38
20,196
$2.00
15
83018
Fitness Training Fees
$15
938
143063
$15.00
331
4,970
Fitness Programs
Lumpsum
15;000
1,920
Towel/equipment Rentals
Pool�Rentals/Competitive-Lap Lanes
lumpsum
11,250
$12.00
1,882
22,589
3,600
$150
60
81980
Pool Rentals/Private (hours/$ per hour)
$150
24
$100
306
30,600
$125
327
40,861
Party/BD
.. ._. . -------------- _.. _w_�
Facility Rental (Event/Banquet/Meeting)
_ m
$12329
1,
48
633555
$13329
54
72,180
2,628
Pro Shop Merchandise Sales
63825
�
_
10,800
71913
ConcesstonsiVending
. _e
21461
Incremental Increase in Senior Program
33750
n .,..� p....-.HwR� �xa...._..,....,..�aa,
General Interest Programs
��:�,m...�.,_a.�ma.�t...�...
�,.u.�.�
.�. ..�........R
er,R�..............
41693
�
43500
17,634
Miscellaneous/Interest Earnings
Total Revenue
1,265,641
9t189727
&penditures
908,310
783,309
Personnel Costs
103,691
1232820
Supplies
Other Services & Charges
2605694
2653644
Intergovernmental
81641
16,500
59085
Capital
Internal Service Charges
89,339
104,688
Total lxpendittt res
1,378,533
15291,187
Operating Rev Over / (Under l�tp)
(112,892)
(382,460)
The Business Plan projection
for passholder-revenue
is based on the number of"generic
annual passes," In practice, we offer passes i t
various durations. Therefore,
the city's 3-month and
6- month passes were converted to
annual level in order to compares with the
Business Plan projections.
' The total projected annual subsidy of $300k includes $120k annual set -aside for replacement reserves and $26.5k revenue loss due to closure of KLCC, which affects and is accounted for in the General Fund.
Therefore, the net "Operating Subsidy" is $153k annually or $113k for the 9-month period.
2 Reflects cost of living adjustments applied to operating costs.
Federal Way Community Center
2008 Strategic Planning Recommendations
.
Po ni1e$B
.: _ .
:
Enhance customer experience by greeting
Eliminate daily admission charge for
Re -visit building hours -revise according
Contract marketing, graphics, sales
patrons as they enter and exit. Set expectation that
spectators, a goodwill gesture.
to actual usage.
work for one year.
every patron receive at least one staff contact.
Completion Date: On -Going
Completion Date: Done
Completion Date: 6/1/08
Completion Date: 2008
Focus on front desk cleanliness and efficiency.
Reduce gym rental rates to match those
Re -visit building policies for age
Develop promotional discount
in the regional market.
guidelines.
pricing.
Completion Date: Immediate
Completion Date: 2/ 1 /08
Completion Date: 3 / 1 /08
Completion Date: 3 x's annually
Implement clothing standards (logo wear) to
Discount "off-peak" business meeting rental
Expand the opportunities for and use of
Finalize building signage - i.e. electronic
ensure consistent identification of customer service
rates, MT, 8 am-5 pm. Implement non-profit
the Senior Lounge.
signage, and update city vehicle signage
staff.
rates for rentals - between 20-30% off for FW non -profits.
program.
Completion Date:4/1/08
Completion Date:2/1/08
Completion Date; 6/1/08
Completion Date:6/1/08
Develop a Customer Retention Committee to
Implement low-income fees
Consider the addition of beginning Pilates
Develop community connections w/youth
follow-up w/passholders and keep passes
as passholder amenity.
and family market, i.e., sign-ups for Little
renewed.
League - one time, low-cost opportunities.
Completion Date: Done
Completion Date: 2/15/08
Completion Date: 4/1/08
Completion Date: On -Going
Schedule additional customer service training
Restructure corporate/business extended pass
Develop specialty programs which will be
for lead staff. Develop a "self -guided tour."
rates.
discounted for passholders, higher for
non-passholders. (i.e. Fitness for Families)
Completion Date:3/l/08
Completion Date:4/1/08
Completion Date: 1/08; On -Going
Develop a Customer Intercept Survey 2'x year
Evaluate all pass rates, especially Adult rates. Consider
Implement coffee/snack bar.
for customer feedback.
revising 3-month pass to a "summer only" pass and
review viability of 6-month pass.
Completion Date: 03&09/08
Completion Date: 7/1/08
Completion Date: 6/1/08
Implement "secret shopper" program to survey
Revise annual pass, implement $5 convenience
current customer experience, both current and
fee for those who pay monthly.
"first time" users.
Completion Date: 5/l /08
Completion Date: 4/1/08
Consider converting 1-2 positions from part-time
Revise age guidelines for fee assessment -current fee is
to FTE lead lifeguards for consistent customer
youth age 3 and under free change to age 2 and under
service.
free.
Completion Date: 09-10 Budget
lCompletion Date: 2/15/08
FEDERAL WAY COMMUNITY CENTER: COMPARISON OF 9-MONTH ACTUALS TO THE BUSINESS PLAN
This Table provides a comparison of the actual financial
results for the first nine months of Federal Way
Community Center (FWCC) operations with the
adopted Business Plan,
The Business Plan projected an operating deficit or
subsidy of around $112,8921 for the 9-month mark
however, the 9-month actual is about $382,460, a
difference of nearly 270k.
For the first full year of operations, the Business Plan
projected a total subsidy of $198,405 and $289,994 for
Year Tw02. We are forecasting an actual subsidy of
about $480,000 for year one and $530,000 for year two.
In comparison, the last annual subsidy for the Kenneth
Jones Pool was around $250,000 (budgeted deficit was
$319)000).
The City Council designated 1% of the City's utility tax
to cover debt service and support the FWCC. In 2007,
that portion of the utility tax generated $1.5 million.
After deducting the debt service payment of $913k, the
balance of $587k is available for the FWCC's
operations, which would be sufficient to provide
anticipated subsidy in the foreseeable future.
While we believe there will be sufficient funds to cover
the revised operating subsidy, it may leave little or no
room to provide replacement and renewal reserves,
which was recommended at a level of $120,000
annually in the business plan. The reserve fund will
become increasingly important over the next few years
in order for the FWCC to sustain its customer base and
maintain its operation results.
Per Business Plan
Actual
9-Mo
9=Mo
Community Center
Unit Price'Quantity
Planned $
Avg Price
Quantity
'Actual $
Revenues
_
Daily Admission (360 days)
$5
310
4183500
$4.58
176
217,481
Generic Annual Passes**
$401
1,389
556,322
$534.43
899
399,443
_ �
_... _ e
w
.r
.e__..,
_».uel ...
Youth Athletic Programs
Open Gym/Indoor Playground
57
» »
_
I. »
�..
AquaticsPrograms-Lessons/Classes
1063680
96,900
»
Childcare Fees (average daily hours)
$2
38_
_..._.
20,196
_
$2.00
_ »
e
8,018
_15 r
Fitness Training Fees
$15
938
14,063
$15.00��331
45970�
Fitness Programs-�Lumpsum
_
15,000
_
1 9�0
�
_
Towel/equipment Rentals
» Pool Rentals/Competitive-LapLanes
lumpsum
113250
��$12.00
1,882
22,589
Pool Rentals/Private (hours/$ per hour)
$150
24
3,600
$150
60
85980
Party/BD» �m N..»
$100
»306
30,600
$12S » .
327
40,861
Facility Rental (Event/Banquet/Meeting)
$12329
48
633555
$1,329
54
72,180
�6,825
.mw
2,628
Pro Shop Merchandise Sales�aa
10,800
7,913
ConecssionsiVending
._.
25461
Incremental Increase in Senior Program
3,750
General Interest Programs
�»
-�-
�
»� 4 693
4,500
173634
Miscellaneous/Interest Earnings
Total Revenue
19265,641
908,7Z7
Expenditures
Personnel Costs
908,310
783,309
1035691
1235820
SuPPlies...._.,R
2603694
265,644
Other Services & Charges
Intergovernmental
8,641�
16,500
55085
Capital
Service Charges » � �
»
893339
1041688
Internal
Total Expenditures
153789533
1
1,2911187
Operating Rev Over / (Under Exp)
(1129892')'
(38214'60)
** The Business Plan projection for passholder-revenue is based on the number of "generic annual passes." In practice, we offer passes at
various durations. Therefore, the city's 3-month and 6- month passes were converted to annual level in order to compares with the
Business Plan projections.
1 The total projected annual subsidy of $300k includes $120k annual set -aside for replacement reserves and $26.5k revenue loss due to closure of KLCC, which affects and is accounted for in the General Fund.
Therefore, the net "Operating Subsidy" is $153k annually or $113k for the 9-month period.
2 Reflects cost of living adjustments applied to operating costs.
4REENPLAYLC
TireleadwyEdge InParks.Recra ri
And Open SpaceCnnsuRing
3050Indusb7al Lane, Suite200, Broomfield, CO 80020, Tel. (303) 439-8369, Fax (303) 439-0628, Email. Info@GreenPlayLLC.mm, Web: WWWGrM7P/ayLLC.com
City of Federal Way, Washington
Parks, Recreation and Cultural Services Department
Federal Way Community Center
To:
From:
Through:
Subject:
Date:
Mary Faber, Superintendent of PRCS Department
Karon Badalamenti, CPRP and Principal, GreenPlay, LLC
Chris Dropinski, CPRP and Senior Managing Member, GreenPlay, LLC
Performance Benchmarking - FWCC - 6 months
Revised DRAFT January 4, 2008
It is the City's desire to benchmark performance of the Federal Way Community Center
against the Business Plan for its first six months of operation. Based on a set of
presumptions, we offer observations and recommendations for consideration in relation to
the Business Plan's fiscal goals.
Draft Recommendations
Draft Summary recommendations follow with more detailed analysis and specific strategies
by topic area to be discussed with staff.
• Participation and Financial Reports - Continue to reconcile CLASS reports with the
Eden reports so it is possible to analyze where a specific shortfall is occurring or
where general ledger numbers don't match.
• Projected Admission Budget Variance - We have compared the total revenues
received accounted through the CLASS system on a cash basis against the September
30th projected and actual performance to see where specific variances occur (please
refer to the attached excel spread sheet for the complete financial analysis.)
xr
Passes (57 % of total $305,751 $364,230 $360,000 ($ 54,249)
revenue
Daily Admission (43% of $168,168 $274,767 $279,000 ($110,832)
total revenue)
Local $474;182 $638,997 $639,000 -
($165,081)
Business Decision #1 Monthly EFT versus premium monthly fee $ 27,000
Business Decision #2 Adults free in pool area $ 38,000
Actual versus forecast #1 Average daily fee is $4.50 versus $5 budget $ 18,600
Actual versus forecast #2 Average daily admission is 207/day versus 310 $ 83,430
(103 multiplied by the actual average daily fee
$4.50 x 180 days = difference over 6 months
Federal Way Community Center - 6-month Performance Benchmarking
Pagel of 15
The Leading Edge hrParks,;
And Open SpaceCensuffing
3050Indusinal Lane, Suite 200, Broomfield, CO 80020,Tel (303) 439-8369, Fax (303) 439 0628 Email. Info@6reenPlayLLC com, Web: www.GreenPlayLLC.com
Immediate Action Required: It is important to capitalize on the upcoming marketing
opportunities especially in relation to the FWCC and its role and benefit to the community
regarding health and wellness. This is the greatest opportunity for adult pass sales for
fitness and wellness, adult fitness classes, personal training etc...
1. Holiday gift giving season for passes, personal trans ings, gift certificates, etc...
2. Launch a health and wellness campaign with New Year's resolutions, getting fit and
starting the New Year out right; Make your way (treadmill, elliptical, bike or row)
across Washington, etc .......... with your marketing efforts, especially in relation to
health and fitness and how the center is the place for quality instructors, personal
wellness assessments and training, membership/pass purchases, etc... It's their
neighborhood place; it's the Healthy Heart of the Federal Way Community; it's the
way to make a great day in Federal Way..........
The following can be acted upon immediately based on information known to date.
• Reports and Record Keeping - continue to develop a stringent tracking system in
order to produce reports to assess performance against internal benchmarking.
• Fee Structure, Programs, and Attendance - consider adjustments to fee structure
and payment options, and pursue policy changes that support the fee structure
goals.
• Marketing and Promotional Efforts - consider the addition of a full time marketing
position, conduct a opinion and satisfaction survey, identify and track performance
measures, increase marketing efforts with additional strategies, add new niche
markets, promote the benefits and make the case for how the FWCC contributes
positively to the quality of life and overall community health in the City.
• Customer Service, Staff and Staff Training - focus on the customer experience,
adjust the lifeguards positions to full time status, focus on consistent procedures,
improve CLASS system expertise and provide more training to fully make use of its
capacity.
• Programming, Spaces and Rental Opportunities - add more programs that generate
excess revenues over expenditures, capitalize on popular programs, optimize use of
spaces, and aggressively pursue the rental market.
Federal Way Community Center - 6-month Performance Benchmarking Page 2 of 15
/ LC
The LeadingEdge In Perks,
And Open Space Cnnsufting
3050lndusb7al Lane, Suite 200, Broomfield, CO 80020, Tel (303) 439-8369, Fax (303) 439-0628,• Email. Intb@6reenP1ayLLCcom, Web: www.GreenPlayLLCcom
Background and Analysis
This analysis considers one-year participation and financial projections, pro -rated in the best
means possible, to compare with actual performance for the six month period that the
facility has been in operation.
Presumptions
The Business Plan was based on a January opening, and anticipated high revenue
months at the start of the year (fitness) and the start of the summer (aquatics). The
center actually opened in April.
■ The City prepared a nine month budget for the months of April - December based
on roughly 3/4ths of the Business Plan projections for a full year. The 3/4 year budget
reflects 75% of the expenditures in the business plan, however, it reflects 77% of the
revenues. This difference accounts for almost $34,000 in additional projected
revenues than the 75% logic would reflect.
■ The Business Plan reflects one year projections on a cash receipt basis. This means that
regardless of when a facility opens or how many months it operates in the calendar
or fiscal year, that the fee for any service purchased in the first year of operations is
credited in that time period, in the full amount, at the time that it is paid. City
financial record keeping for the facility appears to account for financial activity on an
accrual basis.
■ A business plan for a facility of this nature reflects the activity of a number of smaller
"businesses." A good faith effort is put forth to address each area and project the
opinion of probable operating costs and revenues, knowing that in reality some
areas may under perform and others will over perform based on unknowns and
market changes. It is important to look at the performance of each of the areas in
order to make appropriate adjustments where possible, but equally important to
consider the bottom line of the collection of businesses, or the overall performance of
the center, in light of the ups and downs within.
An analysis of the performance of the facility by topic areas follows.
1. Schedule
• Information: Typically the optimal time for a fitness amenity, that is reliant on adult
annual passes, to open is January when the desire to get fit is greatest and the topic
of many New Year's resolutions. The optimal time for an aquatics center to open is
summer, allowing the operations to capitalize on the natural enthusiasm of kids out
of school. The Federal Way Community Center Grand Opening was March 31-April
1 weekend.
• Analysis: The March 31-April 1 grand opening has had a negative impact on the
anticipated fitness revenues. Aquatic revenues are reflective of hitting the high
summer season. It is clear from analyzing current performance trends and
observations from staff that the pool is the anchor for the admission and 3-month
pass sales, and that group exercise is the anchor for the adult annual passes. In the
first six months, although two high revenue periods were anticipated in the Pro -
forma, only one high revenue time period out of two has come into play.
Federal Way Community Center - 6-month Performance Benchmarking Page 3 of 15
GREENFLAYLC
The LeadiingEd� g ,Recreation
And Open Space Consulting
3050 kdu567al Lane, Suite 200, Broomfield, CO 80020, Tel (303) 439-8369,• Fax (303) 439-0628, Email. In1b@6reenP1ayLLCcvm, Web: www.GreenPlayLLGam
• Information: The Business Plan indicates that the facility will be closed in
recognition of 3 holidays, will close early on other City holidays, and will have a one
week shut down.
• Analysis: The pro -forma calculations reflect a "generic' daily fee calculated to be
received over 360 days per year, when in actuality the facility will operate only 355
days per year. This resulted in an overstatement of projected revenues of
approximately $7,750.
2. Reports and Record Keeping
• Information: The Pro -forma was constructed on a cash basis. The actual revenues
collected are being accounted for on an accrual basis.
• Analysis: An annual pass purchased in the first month of operating (April)
currently reflect only 6 months worth of the revenue anticipated by the Pro -forma in
the first year, and by the end of the budget year will only reflect 9 months worth of
the revenue anticipated. If purchased in the second month only 8/12ths of the
revenue is scheduled to be realized in the first budget year (2007). Therefore, based
on activity through September 30, 2007, over $100,000 is being recorded as deferred
revenues and is not currently credited to facility performance. This method of
accounting was not anticipated by the Pro -forma.
• Information: Extended Use Passes, Daily Drop -In and Event Admissions are not
being tracked accurately as evidenced in the Eden financial report.
• Analysis: It appears that most of the revenue is accounted for in the Daily Drop -In
Admissions. Event admission is recorded at $59,000 compared to a budget of $3750,
which doesn t seem reasonable. Staff are working with finance to correct this
reporting.
3. Fee Structure, Programs and Attendance
Fee structures vary from city to city across the state and the nation. The Federal Way
Community Center Business Plan is structured to meet certain financial subsidy constraints.
The final fee structure was predicated on the City's mission, financial constraints and
approvals and is subject to inflationary adjustments.
• Information: The Business Plan pro -forma methodology relied heavily on annual
pass sales as the preferred admission option as it is a less expensive option for the
patron, yet more reliable source of revenue for the City, and is it collected in advance
and held by the City earning interest. The City has opted to offer the annual pass
with a monthly electronic fund transfer (EFT) option. Of all passes purchased
through September 30, 2007, 56% are set up on a monthly EFT. Of all annual passes
purchased through September 30, 2007 (1,698 =1,611 are monthly EFT and 87 are
actual annual passes), 94% are set up on a monthly EFT.
• Analysis: Single payment annual pass sales make up only 3% of the total pass sales.
By allowing monthly payments for the majority of annual passes sold, these passes
are essentially being sold as monthly passes at the lower annual pass rate with no
guarantee of a year's worth of participation. (# of EFT annual passes 1,611 x
difference in annual pass and premium monthly pass rates (typical best practices
Federal Way Community Center - 6-month Performance Benchmarking Page 4 of 15
305OIndustnalLane, Suite 200, Broomfield, CO 800201 Tel (303) 439.8369, Fax (303) 439-0628, Email. Info@GreenPlayLLC.com, Web: www.GreenPlayLLC.com
to pay a premium for the monthly convenience) = over $27,000 loss of potential
revenue) In addition, there is no convenience processing fee of $5 to $7.50 for each
transaction, which would be typically charged for EFT's.
• Information: The pro -forma uses an average daily admission fee of $5 multiplied by
310 daily admissions. The facility is actualizing an average of roughly $4.50 per
daily admission. The difference in this average results in over $47,000 difference
in projected revenues for the 9 month period.
• Analysis: A business decision was made by the City to not require parents to pay to
enter the active side of the facility to accompany their children in the swim area if
they were not actually going to swim. This is not a typical practice as it is believed
that everyone benefits from the pool experience, in and out of the water, and the
lifeguards are responsible for the safety of all persons, in and out of the water. This
decision has served to lower the average daily admission fee. Youth paid daily
admissions are roughly 2.5 times as many as adult daily admissions, yet it is
estimated that 25% of all youth daily admission are accompanied by a non-paying
adult admission which is lost due to this business decision. This estimate is based on
the YTD through September counts for non-paying adults in the aquatics area. The
additional lost revenues account for approximately $38,000 over the 6 month
analysis timeframe, translating to almost $57,000 for the 9 month budget and
almost $76,000 annually.
• Information: GreenPlay offered recommendations prior to opening the FWCC to
change the definition and structure of the "Household" pass which had been
broadened from its original intent in the Business Plan. The City followed this
recommendation.
• Analysis: The broadened version of the "Household" pass allowed unlimited
number of persons on a pass which would have further contributed to not meeting
the financial goals of the Business Plan. The recommended re -structure added value
to the purchase of "Household" passes by expanding the definition to all those
legally residing in the same house but limited the number of persons on the initial
"Household" pass to four and offering a fee structure for additional persons above
four. This allowed for the broadest definition and highest community service while
still supporting the goals of the Business Plan,
4. Program Revenue
• Information: The aquatic lesson program has already generated revenue in excess
of the 9 month projected budget.
• Analysis: It is likely that the program will realize half again the projected revenues.
5. Attendance
• Information: The typical average daily attendance for all programs and admissions
is around 800-1000/ day for a facility of this size. Staff indicates that daily facility
attendance averages 700-750 per day:
o 250-300 pass holder visits/day
o 250 daily admissions per day
Federal Way Community Center - 6-month Performance Benchmarking Page 5 of 15
LLC
The Leading Edge In Path,
And Open Space Consulting
3050Industrial Lane, Suite 200, Broomfield, CO 80020,• Tel (303) 439-8369,• Fax (303) 439-0628,• Email, In%@7GreenP1ayLLC com,• Web: www.GreenPlayLLCc m
o 200 program participants or rental users per day
Analysis: This information is being verified with the intent of comparing actual
revenues collected and accounted for against participation numbers. An Excel
spread sheet accompanying this report begins this analysis, however, at this time it
only includes data for the first five months of operation.
6. Alternative Providers and Current Market Indicators (this section was previously
provided to City Council as Appendix A: Alternative Providers as part of the 12/18/07
presentation)
• Information: Generally, community centers appeal to a market somewhat different
than those interested in private health clubs. While there may be some participation
impact at the early stages of a new facility opening, private and public, what we
typically see is that over time each settles into its own marketing niche and each
contributes in its own way to providing comprehensive service to a community. The
City desires to compliment what is being offered through the private sector with the
Federal Way Community Center accommodating the needs of the youngest child
through teens, adults, and seniors.
LA Fitness, located approximately 5 miles from the FWCC, opened prior to FWCC
but its coming was unknown at the time of the development of the Business Plan.
Staff learned of this LA Fitness during the construction process.
Analysis:
o LA Fitness requires a one time enrollment fee, which varies with promotions,
of $50-150 per person
FWCC has no enrollment fee
o Monthly rates vary with promotions at the time of joining (summer is the
least expensive due to non -peak participation) and rates range between $30-
$45 per month.
FWCC monthly fee is the annual pass fee divided by 12 months =
$37.50/month for an adult
o Nation-wide plan available for $70 + per month
FWCC not applicable
o Highly competitive sales staff often negotiate fees; visitors inquiring about
joining are not told the fees by the front desk staff but are referred to a
salesperson
FWCC has a "community service" philosophy and the front desk staff has all
fee information. While it's not desirable to have the staff be high pressure
sales people, good customer service and salesmanship skills are very
important to achieving the revenue projections.
o Guest passes for up to 2 weeks are available at the discretion of the
salesperson
FWCC not applicable
o Daily fees for drop in use is $15
FWCC is $7 for a resident adult.
Federal Way Community Center - 6-month Performance Benchmarking Page 6 of 15
rwREE rPLAYlC
The Leading Edge InParks, Recreation
And Open Space CansuftAy
3050Indusbial Lane, Suite 200, Broomfield, CO 80020, Tel (303) 439-8369, Fax (303) 439-0628, Email. Info@GreenPtayLLCcom, Web: www.GreenPlaytLCcom
• Information: Bally's Fitness, approximately 2-3 miles from FWCC, has been open
for some time.
• Analysis:
o Highly competitive sales staff often negotiate fees; visitors inquiring about
joining are not told the fees by the front desk staff but are referred to a
salesperson for a tour and encouragement to join on the spot
FWCC -same as above for LA Fitness
o Guest passes for near by hotel guests
FWCC - this could be a marketing tool for Federal Way
• Information: Fee Comparisons
The 2005/6 analysis from the Business Plan is repeated here with the addition of the
new LA Fitness providing the following fee comparison:
Tukwila
$ 5
$11.66
$140
Kenneth Jones
$ 4
$14.58
$175
LA Fitness
$15
$30 (summer rate)
$360
Bally's
$12
$35
$420
24 Hour Fitness
$10
$35
$420
FWCC
$ 7
$37.50 (payment plan)
$450
Curves
n/a
$39
$468
Norpoint
$ 7
$40
$480
King County
$ 5
$41.33
$496
Auburn YMCA
$12
$47
$564
Mel Korum YMCA
n/a
$48
$576
Average
$8,55
$34,46
$413,55
• Analysis: The adult daily, monthly and annual fees are within the market spread.
7. Marketing and Promotional Efforts
The community had minimal exposure to a recreation and indoor aquatics center and
nothing like it exists in or around Federal Way. The facility is not centrally located, nor is it
easy to find as it's tacked into a residential area near Celebration Park.
• Information: Commitment to Community Philosophy. It is important to revisit the
financial expectations of the Business Plan, current practices and competing goals
regarding the subsidy commitment and the focus on community -centered
philosophy. There is the belief that one increases the community focus by relaxing
the "Pay to Play" financial model. Providing greater choices, relaxing typical
business practices and discounted use reflects this community -centered model.
• Analysis: While this approach may be desirable, it will necessitate a greater tax
subsidy than first anticipated. The operating subsidy may need to be increased to
reflect these type of decisions. In addition, this has devalued the marketing benefit
Federal Way Community Center - 6-month Performance Benchmarking Page 7 of 15
LLC
The Leading Edge to Parks,
And Open Space Consulting
3050Indusb7al Lane, Suite 200, Broomfield, CO 80010; Tel (303) 439-8369,• Fax (303) 439-0628,• Email. In1h GreenPlayLLCcvm,• Web: www.GreenPlayLLC.com
of the annual pass with
few taking
advantage
of the
6 month and annual passes
because of the option to
pay the same amount
as an
annual pass on a monthly basis.
The City desired to make admission fees affordable for all resident users so low
income rates for each category of admission fees were also added instead of dealing
with ability to pay as a separate issue from the advertised fee structure. The impact
of this decision is unknown, but it is not a typical practice and should be looked at
more closely.
• Information: Typically a dedicated marketing position is necessary and desirable
when opening a facility of this type and magnitude.
• Analysis: The Business Plan indicated that the "existing program staff would be
augmented by new staff specializing in facility management and operations,
building maintenance, custodial, marketing, pool operations and maintenance,
program registration, and health and fitness. " The marketing responsibilities are
currently being shared by existing staff, a dedicated marketing position has not been
retained. The city has utilized contracted marketing services, but consideration for
an FTE position is recommended.
Promotional Efforts To -Date (this section was previously provided to City Council as
Appendix B: Marketing -the first Six Months as part of the 12/18/07 presentation)
Existing staff has made a significant marketing effort to -date as follows:
Opening promotional schedule:
• Soft Opening for 2-3 weeks (staff conducted tours and guests used the amenities
as available)
• Grand Opening weekend - March 31-April1, 2007
Pre -opening (some methods may currently be employed):
• Early Bird Pass Pre -sales offered a 5 % discount on Monthly, 3-Month, 6-Month
and Annual passes
• Direct mail of postcards and flyers to homeowners and selected households
advertising the opening and discounted Early Bird Passes
• Department -wide brochure direct mailed to 40,000 households and currently
includes facility information
• Rack cards about the facility were distributed to local businesses
• Window clings and magnetic strips were on city vehicles and vans
• Video and slides were placed on the government channel
• Banners were up at City Hall and the FWCC
• The staff had a presence promoting the FWCC at summer community events
• FWCC promotional giveaways with center information has been distributed
• Staff created a "Things To Do" notepad with FWCC information as a giveaway
• Staff participated in a parade with a FWCC float to promote the facility
Post opening:
• Additional direct mail pieces were sent to current customers
• Advertisements were placed in specialized and targeted magazines
Federal Way Community Center - 6-month Performance Benchmarking Page 8 of 15
3050Industnal Lane, Suite 200, enwmfield, CO 80020, Tel (303) 439-6369, Fax (303) 439-0628, Email. Info[a7GreenP1ayLLC.mm, Web: www.GreenPlayLLC.com
• The staff uses display boards and A -frame signs regarding special pass
promotions at the facility
• The FWCC has bulletin boards that the staff uses to post promotional materials
• Banners have been placed outside the building promoting specials. (addition to
the 12/18/07 information)
• "Improve Your Bottom Line" promotion was distributed throughout the
community at public meetings (addition to the 12/18/07 information)
• The FWCC has been featured in every Recreation brochure w/2-4 pages of
information, in color format (addition to the 12/18/07 information)
• TV slides have been used for promotion on the city's channel 21 (addition to the
12/18/07 information)
• A thank you letter to pass holders is sent out to encourage renewals
• "September Shape Up" promotion offered a 5% discount on 6 month and annual
passes (including upgrades from a 3 to 6 month pass)
• Rack cards re -distributed in the community
• Targeted slides were shown on governmental channel
• Web page was updated and revised
• A front page icon for the community center was placed on the opening page of
the web site for the City
Recommendations
1. Reports and Record Keeping
After reviewing the year to date financial and attendance reports from both Eden and
CLASS, attempting to reconcile general ledger account numbers between the two, and
meeting with both the administrative and recreation staff, performance benchmarking is
recommended. Because the demographics, values and interests of each community vary,
the best measure of performance is internal benchmarking.
Recommended Strategy:
The following statistics are recommended to be tracked separately, measured and
compared month to month, season to season and year to year.
• Daily attendance - separately and consolidated (to include the number of
daily admissions, the count of pass holder visits by day, and the class, child
care, event and rental attendance)
• Daily admissions by type - number of patrons and amount of revenue by
type
• Pass sales by type and residency
• All promotional use
• Pass Renewals
• Child care attendance - to determine peak and optimal hours of service
• Building counts by area
• Group exercise attendance - to optimize program offerings and expenditures
Federal Way Community Center - 6-month Performance Benchmarking Page 9 of 15
GREE'NPLAYLC
The LeadingEdge in Parrs, Recreahen
AndDpenSpace Cansuttinr
3050Indus trial Lane, Suite 200, Broomfield, CO 80020,• Tel (303) 439-8369, Fax (303) 439-0628,• Email InfoCaGreenPlayLLC.com, Web: www.GreenPlayLLCcom
• Periodically track the primary use for drop in admission (gym, swim,
basketball, climbing, group exercise)
• Guest comment cards
• Periodically conduct user intercept surveys for satisfaction, cleanliness,
suggestions
• Budget performance
• Rentals and repeat rentals
2. Fee Structure
These issues impact the marketing benefit of fee discounts available to the frequent user:
• Offering fee choices is desirable, but too many choices tends to devalue the
marketing benefits of upfront payments and it seems way too complicated
• Typically the monthly pass is a higher convenience pass and is more than simply
dividing the annual pass fee by 12 months as Federal Way is doing. In this case the
monthly pass option is an EFT payment plan, not a monthly pass.
0 The greatest marketing discount is typically applied to the annual pass purchaser
who pays the entire amount up front.
• Some of the daily admission fees may be higher than the market averages so there
may be an opportunity to decrease some fees and increase the number of users
• It is typical practice for public recreation centers to have an expiration date for multi -
visits passes.
Recommended Strategies:
➢ Revise the monthly payment option and give the greatest discount to those willing
to pay the entire annual pass fee upfront (refer to Fee Structure); convert the
monthly payment option to a premium pass or add a convenience processing fee to
the monthly payment plan (suggest a $5 per month fee)
➢ Adjust the annual pass fees so that they all equal 60 times the daily admission fee.
This allows staff to market the pass with "If you use the FWCC more than 5 times
per month, the annual pass saves you money." In most cases this will slightly lower
the fee.
➢ Charge a $50 cancellation fee on an annual pass contract
➢ Reduce the many admission fee options (refer to Fee Structure); eliminate the 6
month pass option; convert the 3 month into a summer seasonal pass
➢ Adjust the summer (seasonal) pass fees so that they all equal 20 times the daily
admission fee. This allows staff to market the pass with "If you use the FWCC more
than 20 times during the summer, the summer pass saves you money." In most
cases this will slightly lower the fee.
➢ During open swim, all persons who enter the aquatics portion of the facility should
pay an admission fee.
➢ Promote upgrading to an annual by paying the difference if they do so before the 3
months expire
➢ Add an expiration to the multi -visits of 1 year from date of purchase
➢ Add non-resident daily fees
➢ Make Tots under 2 years free (instead of through 3 years)
Federal Way Community Center - 6-month Performance Benchmarking Page 10 of 15
6REEI, PLAYLLC
Ike Leading Edge InJ'Aft, Recreation
And Open Space Constd ting
3050Industnal Lane, Suite200, Broomfield, CO 800201 Tel (303) 439-6369,Fax (303) 439-0628; Email InfonaGreenP/ayLLCcom, Web: www.GreenPlayLLCcom
Do not publicize the pre and post tax rates; uses round numbers when possible and
indicate that tax is included.
➢ Do not publicize the low income rates but rather say that there is a 25% pre-tax
discount available for those who apply and qualify
➢ The business decision to not charge parents accompanying their children should be
discontinued or at the very least merits a market analysis of this business practice of
other similar agencies.
➢ Offer "Non -Peak" time passes (requires front desk monitoring and separate CLASS
system distinction)
3. Marketing and Promotional Efforts
Recommended Strategies:
➢ Fund a full time marketing and graphic person for the department and dedicate time
to pursue the business market niche
➢ Conduct a community -wide opinion and interest survey to determine price point
tolerance of the community and their satisfaction with the FWCC programs and
services
➢ Review annual performance and use established benchmarks to measure
performance in the upcoming year; compare season to season as well as annual
performance
➢ Sell corporate benefits for employees to receive the resident rates; pursue large
companies for target marketing
➢ Add signage on the building and at parking lot entrances
➢ Pursue the FWCC being a public transportation bus stop
➢ Sell the benefits of fitness, fighting obesity and wellness
➢ Sell the benefits of what daily admission or passes get you at the FWCC
➢ Market building use to meet the EALR (Education Academic Learning
Requirements) for physical education requirement
➢ Create direct mail postcards offering $5-10 or some amount off an annual pass when
you bring in the postcard
➢ Create direct mail postcards offering 'Bring a Friend" buy one daily admission and
get one free when you bring in the postcard
➢ Offer discounted guest passes at hotels for those traveling who want to work out
➢ Consider eliminating the climbing equipment rental fees as this may be discouraging
its use
➢ Conduct seasonal or annual Open House - free use days
➢ Ensure that staff (or a volunteer who gets free facility use benefits) conduct facility
tours for those who come in to the FWCC and are new, and sell the benefits; give a
"Try us out" pass (with limited use) for you and a friend after the tour; require name
and phone number for the visitor; follow up in 1 week asking for thoughts about
their visit
➢ Conduct follow up phone calls for those who didn't renew their passes
➢ Conduct courtesy phone calls for those who are about to expire and offer a $ or %
discount if they renew today
➢ Set up the CLASS system to create renewal postcards automatically for pass holders
Federal Way Community Center - 6-month Performance Benchmarking Page 11 of 15
itC
The Leading Edge In Parks, Recreation
And Open Space Consulting
3050Industrial Lane, Suite 200, Broomfield, CO 80020,• Tel (303) 439-8369,• Fax (303) 439-0628, Email. Info@GreenPlayLLC.com,Web: www.QeenP/ayLLC com
➢ Research renewal opportunities through the web for passes
➢ Establish target markets, admission times and niche programming for families,
afterschool, seniors and neighborhood
➢ Target entry level fitness, youth and teen fitness
➢ Work with medical community, assisted living and other type agencies to get seniors
and other fitness involvement
➢ Consider revisiting the hours of operation to reflect what the numbers support; run
hourly attendance report through CLASS to evaluate
M-F open at 6:00am versus 5:30am
• Saturday open at 7:30am versus 7:00am
• Sunday open at 11:00am versus 10:00am
Adjust for seasonal flow of building use
➢ Add vending and concessions
4. Customer Service
At the cornerstone of a service driven business is the quality experience of the guest and the
customer service provided by the staff.
Recommended Strategies: (Many of these are currently in practice and need to be continued)
➢ The facility and the staff need to continue to convey high energy, excitement and
enthusiasm
➢ Front desk staff must sell the business, sell the discounts provided by passes, sell the
benefits of the FWCC, and cross sell other programs with admission activities
➢ Facility Management and Programming Staff need to be in communication with and
visibility to front desk operations
➢ All staff should be available to conduct tours for the public
➢ Develop a volunteer greeter or tour guide program
➢ Consistently apply the guidelines and procedures for center operations
➢ Require immediate janitorial or maintenance response to cleanliness concerns,
equipment malfunctions or repairs, and other issues which can negatively impact the
guest experience
➢ Stress the importance of everyone chipping in... cleanliness is everyone's
responsibility
➢ Staff must perform walkthroughs
➢ Increase personal phone answering versus sending calls to voice mail
➢ Keep the website updated and current
➢ Have all staff emulating desired behaviors, exude patience, confidence
➢ Recognize a "Can Do" attitude and consistent behavior
➢ Institute a "Wow" or "High Five" program to recognize great customer service
➢ Conduct a pass sales competition or incentive program
➢ Follow up with phone calls when a guest does not renew their pass
➢ Simplify and make the contract language for passes less vague
➢ The refund and pass cancellation process is subjective so this should be re -visited,
applied consistently and clear to the guest when they read and complete the pass
contract
Federal Way Community Center - 6-month Performance Benchmarking Page 12 of 15
The Leading Edge In Parks, ;
And Open Space Cansu ing
3050Indusbial Lane, Suite 200, Broomfield, CO 80020; Tel (303) 439-8369, Fax (303) 439-0628,• Email: Infona GreenPlayLLC.Com; Web. www.GreenPlayLLC.com
➢ Structure the notification and follow up process for those pass holders who are
paying monthly and are in arrears
➢ Consider using keychain cards to cut down lost or forgotten cards
➢ Revise the ages for children in the pool, gym and facility to be consistent with best
practices around the state
0 A child 6 years and below must have an adult 18 years and over
accompanying them in the pool when using the pool
• A child 7 -11 years must have someone 15 years and older in the building
with them when they are using the pool
• A child 7 -11 years in the gym must have someone 18 years and older in the
gym with them
• Change the teen age from 13 to 12 years
• A teen 12 and older can be in the building or pool by themselves
5. Staff and Staff Training
Recommended Strategies:
➢ Staffing of lifeguards with hourly staff is a challenge; consider moving some to full
time positions to save dollars over the long run
➢ Continually re -visit job duties and descriptions based on what needs to be done
➢ Continue regular solution -oriented staff meetings with a focus on working "smarter'
not harder
➢ Revisit the mission - why are we here?
➢ Create mutual goals of a busy and active center - identify and discuss cross purpose
goals and missions (like keeping the center clean and a very busy center)
➢ Finalize systems and processes, and expectations for performance, then
hold each other accountable for good performance
➢ Need more CLASS training and customer service training
• Implement the "Fish" philosophy or something like the "Good to Great"
philosophy
➢ Buddy up an administration staff member with a programming staff member for
cross training; tie the responsibility for the success of the mentoring experience to job
performance
➢ CELEBRATE SUCCESSES!
6. Programming and Programming Spaces
Aquatics
Aquatics seems to be the anchor for the building for the time being. The aquatics lessons
budget has almost actualized in 5 months of operations.
Recommended Strategies:
➢ Consider raising aquatics lesson fees and offer a discounted rate equal to the current
lesson fees to annual pass holders (not monthly or others pass holders)
Fitness
Federal Way Community Center - 6-month Performance Benchmarking Page 13 of 15
■ LC
The Leading Edge in Packs, Recreafian
And Open SpaceConsalting ./0
3050Industrial Lane, Suite 200, Bmomfield, CO 80020, Tel (303) 439-8369, Fax (303) 439-0628, Email Infb GreeenA1ayLLC.com, Web: www.GrewA'ayLLC.com
Group Exercise classes are included in the pass fees and is an anchor for the adult passes
Recommended Strategies:
➢ Consider raising specialty fitness class fees and offer a discounted rate equal to the
current program fee to annual pass holders (not monthly or others pass holders)
Gymnasiums
Gyms are underused. There is a state-wide trend of decreasing officiated 5 on 5 basketball
use and moving toward non -officiated basketball
Recommended Strategies:
➢ Offer Senior Pickleball, Volleyball and Basketball programs that often do well during
the day
➢ Pursue the tournament and special event rental market for the gym
➢ Pursue the Home School market for gym use and other physical fitness needs
➢ Pursue organize youth sports associations using the gym for practice and offer a
special rate for multiple uses
➢ Create an indoor playground concept for the gym (not included in the daily
admission or pass fees, but as a special seasonal program offering)
Child Care
Child care is not being utilized - group exercise is primary user but other participants seem
to not have a need.
Recommended Strategies:
➢ Limit the hours offered to prime time only and continue to monitor use
➢ Market the availability of child care to users at the front desk and in fitness classes
Rental Spaces
Rental budget is on track for birthday parties and pool lane rentals. Rentals for the gym are
non-existent. Rental revenue is improving for the larger event rentals but the marketing
efforts need to be increased. The staff has not yet attended the wedding shows or
exhibitions to promote the facility, which may occur in winter 2008.
Recommended Strategies:
➢ Revise rental fees to distinguish social rentals from business rentals
➢ Plan to attend the wedding shows and exhibitions to promote the large
community/banquet room and kitchen
➢ FWCC has a preferred list of caterers who pay a fee to the FWCC to be on the list
and use the kitchen for a reduced fee; while others use kitchen for a higher fee.
Contact the preferred list of caterers and work with them to cross promote and
market discounted packages
➢ Distribute the rental brochure to larger businesses in Federal Way to promote
business meeting space, retreat or planning meeting space, teambuilding and event
space, holiday party space, etc.
Federal Way Community Center - 6-month Performance Benchmarking Page 14 of 15
The leading Edge to Parks. Recreation
And Open Space CnnsntNng
3050Industnal Lane, Suite 200, Broomfield, CO 80020,• Tel (303) 439-8369,Fax (303) 439-0628, Email Info@GreenPlayLLC com, Web: www.GreenPlayllC.com
Analyze the after hours pool rental fee. Consider raising pool after hour rental fees
to cover all direct and a percentage of indirect costs by a fee that more closely
matches market rates
➢ Revisit the gym rental fees
General Programming Spaces
The "Senior Lounge' is not used as designed. Programming is not yet taking advantage of
available spaces; many rooms or spaces like the gym sit empty
Recommended Strategies:
➢ Re -purpose the "Senior Lounge" and use as another classroom
➢ Add programs which generate excess revenue over direct expenses or minimally
breakeven.
Federal Way Community Center - 6-month Performance Benchmarking Page 15 of 15
Performing Arts Center - Council Retreat Update
Saturday, January 26, 2008
1. First Priority: Present to May, 2008 Obtain State legislative approval to
form a Public Facilities District. A PFD would enable us to obtain $7 mil-
lion to $9 million in state funding if we commence construction by June
30, 2009. [NOTE: Doug Levy strongly recommends we not seek a longer
extension; he believes that would substantially reduce our chances of be-
ing successful regarding a request that is already challenging.]
2. Second Priority: On a limited, as -needed basis, engage a grant writer or
other capital campaign specialists to help our volunteers with our Fund-
ing Plan and Capital Campaign Plan.
3. Third Priority: Identify the site for the PAC, taking into account the rec-
ommendations of Johnson Consulting that the PAC site offer opportuni-
ties to locate nearby a ~25,000 square foot Conference Center and 200-300
room full -service Hotel.
Assuming these three Priorities are successfully addressed, then ask the City
Council in a Tune timeframe for a "GO/NO GO" policy decision on proceeding
with a PAC.
A. If the Council -policy decision is "GO," then we need to contract with
an Architect and begin immediately and in earnest with an aggressive Capital
Campaign, including a Naming Rights solicitation and Foundation/Corporate
Grant applications.
a. Design Work: July, 2008 to January, 2009 - with regular Council
check -ins for direction
b. Permitting and Construction Contracting: January, 2009 to
April, 2009 - with regular Council check -ins for direction
c. Construction Mobilization: April, 2009 to May, 2009
d. Ground -breaking: June, 2009
B. If the Council decision is "NO GO," then we need to conclude our
work with our grassroots group, our performance groups, and our other stake-
holders in a positive way so that we can successfully pursue construction of a
PAC (and Conference Center) sometime in Federal Way's future, under the the-
ory that cities and school districts our size will have, someday, an attractive per-
forming arts and conference center venue like Auburn, Kent, and Renton.
01
�Vision,
_ pity CQuncyl
FCITederal Way Mission aInd Goals
As adopted b the City Cwncil on MWG
K4LL
VISION
Federal Way is a community known for its cultural diversity,
attractive parks, safe neighborhoods, and vibrant business
centers.
MISSION
The City of Federal Way is responsive, innovative and fiscally
responsible in delivering quality services, promoting eco-
nomic development, improving infrastructure, and managing
growth.
GOALS
• Integrate the public safety strategy into all facets of City
operations, building on a strong community -based
approach.
• Create a multi -use urban city center that is pedestrian
friendly, linked to neighborhoods and parks, and ser-
vices as the social and economic hub of the City.
• Establish Federal Way as an economic leader and job
center in South King County by attracting a regional
market for high quality office and retail businesses.
• Maintain the capital facilities plan and provide financing
options for transportation and surface water improve-
ments, parks, recreation, cultural arts and public facili-
ties.
• Ensure a responsive service culture within the City
organization where employees listen carefully, treat
citizens and each other respectfully and solve problems
creatively, efficiently, and proactively.
Position Federal Way as a regional leader by working
collaboratively with other local and regional jurisdictions
in order to leverage resources.
'TAT .0
City of Federal Way
MEMORANDUM
-DRAFT 1/18/08-
Date: January 23, 2008
To: City Council Members
Via: Neal Beets, City Manager
From: Mary McDougal, Human Resources Director
Scott Pingel, ICMA Fellow
Subject: Implementing Council Vision, Mission and Goals —
Using Performance Measures to "Tell Our Story"
Performance measurement in local government is all about telling a story -- providing
information to citizens and their representatives in meaningful and relevant ways, about what is
being accomplished. It is also about making sure we have a compelling and positive story to tell.
Performance measures help us prove outstanding performance, understand where improvement
is needed, and account for how public funds are spent to provide services. They tell the story of
how effective and responsive the organization is in doing its job, and how it is progressing
toward achievement of goals. In some cases, we can compare our performance to others' and
hopefully learn from the experience.
It is important that City Council members are aware of the organization's efforts with
performance measurement and how we plan to use performance measures in the future, as well
as become familiar with performance measurement as a tool for communicating and
implementing the Council vision, mission and goals for the City.
Looking Back
The City has included performance data in the budget document for many years. Typically these
were department measures of workload, such as numbers of permits or applications processed. In
2007, staff began working on a different approach, focused on the six Council goals adopted in
2006. Objectives for each goal were identified and assigned to departments or divisions. Those
assigned developed measures for each objective, which were reviewed and refined by the
Management Team (see attached). While departments may continue to provide workload type
measures, they will also be identifying measures to demonstrate how their activities and efforts
contribute to progress toward achievement of the goals set by the City Council. We anticipate
that throughout the City, the measures themselves will require continuous improvement as we
strive to find the best way to demonstrate results.
Looking Forward
The intent is that performance measurement will become an integral part of the city
organization's work culture. Quarterly or more frequent reporting to Council, as well as a
published annual report to citizens, is anticipated. The ability to use current data on a continuous
basis to tell our story both quantitatively and qualitatively will be invaluable in helping Federal
Way residents understand: what the Council's vision is, and how it is being carried out. The next
step is to develop specific strategies for implementing the Council goals and objectives and for
improving performance. The Management Services Departments under the direction of Assistant
City Manager Iwen Wang, including. IT, Finance and Human Resources/City Clerk's Office, will
be submitting the "Lite Assessment application to the Washington State Quality Award in 2008.
This will provide a thorough critique of the measures and communication of results for those
departments, and most importantly, will identify how to improve.
Why use Performance Measurement?
The use of performance data allows us to better track and communicate progress toward goals,
react more quickly to: changes, and make more informed decisions regarding resource allocation.
It is a multipurpose tool — for management of activities and functions, communication of results,
and potentially enrichment of jobs. Organizations who have used performance measurement for
many years report that the tool facilitates efforts to:
• pursue service 1 delivery excellence
• promote learning
• focus improvement efforts
• connect with citizens
• build relationships among staff
• develop emerging leaders
-- all worthwhile pursuits',for any local government organization.
Example
The Police Department provides a great example of how performance measures can be an
effective management tool and portray how the City is performing in carrying out the Council's
vision and goals. The two'major indicators for Police Departments around the country are crime
rate and response times. The Police Department's success is not just that the crime rate in
Federal Way has gone down 9 out of 12 years, or that response times continue to decrease. It is
also about how the Police;, Department is able to promote these accomplishments and give these
measures context. A major result of the Police Department's efforts was the approval of
Proposition 1. They were 'able to show, statistically and contextually, where their performance
was and how much better it could be with the extra officers and staff.
The City's efforts and progress toward implementing the City Council's vision, mission and
goals deserve understanding and acknowledgement. The City has embraced performance
measurement as an important tool for ensuring progress and sharing results.
DEPARTMENT IMPACT ON CITY GOALS AND OBJECTIVES!
Legend.
CM = City Manager's Office
CD = Community Development Service
PRC = Parks, Recreation and Cultural Services
PD = Police Department
PW = Public Works
LW = Law Department
MS = Management Services
Direct Impact - •
Indirect Impact' - 0
No or Low Impact - Blank
1. Safe and Secure Community
CM
CD
PRC
PD
PW
LW
MS
Crime Rate/Crime Reduction
0
0
•
0
0
Nuisance Code Enforcement Actions
•
1
0
Emergency Preparedness
0
0
0
•
Crime Prevention/Sense of safety
0
0
•
0
0
2. Vibrant and Accessible Downtown
Connectivity and Open Space
0
•
•
Re/New/Mixed-use development
•
0
0
0
0
Enhance Business Activity
•
0
0
0
Circulation and Mobility
0
0
•
Safety
0
0
0
•
0
3. Regional Economic Job Center
Job Growth
•
0
0
Reduce Sales Leakage
•
0
0
Household Income
0
Business Friendly, real and perceived
•
0
0
0
0
0
0
4. Environment and Capital Facilities Maintenance and Investment
Preserve and improve the Street System
0
•
•
Invest in Transportation Mobility and Safety
0
0
1
0
•
0
Preserve and Invest in Community Facilities
0
0
0
0
Environmentallnvestment
•
0
0
•
0
5. Responsive, Service -oriented Workforce
Satisfaction with City Services
•
•
•
•
•
•
Cycle and Turnaround Time
•
•
•
•
•
•
•
Recruit and Retain quality employees
0
0
0
0
0
0
•
Employee Development
0
0
0
0
0
0
•
6. Local and Regional Collaboration and Leadership
City Involvement in Regional issues/Organization 1 • • 0 • • • •
5
Federal 'Way Police Department Index Crimes
Crime
1994
1995
1996
1997
1998
1999
2000
2001
1 2002
2003
2004
2005
2006
2007
Homicide
1
3
3
2
2
4
7
4
4
2
0
6
1
3
Rape
90
71
73
37
58
53
43
49
34
50
50
55
64
48
Robbery
141
173
188
154
153
115
128
124
108
125
1211
153
146T
1129
Felony Assault
162
167
171
121
159
167
158
141
120
120
109
101
119
107
Burglary
857
881
965
643
3,901
648
573
533
521
677
672
759
800
753
_ 739
31159
Larceny
3,793
4,300
4,086
3,393
3,097
3,072
3516
3,347
3,145
3,257
3,786
3,230
Auto Theft
722
843
807
35
746
24
761
808
849
1179
1,206
1,204
1,118
1,573
1,199
939
Arson
32
38
39
38
36
17
29
14
25
25
26
18
otals
5,798
6,476
69328
5,628
5,213
4,855
4,826
5551
5525
5332
5439
6499
5538
5142
Federal Way
Population
71,830
74,290
75,240
75,960
76,820
76,910
83,259
83,890
83,850
83,500
85,500
85,800
86,530
87,390
Per Capita
Per 1,000
80.7
87.2
84.1
74.1
67.9
63.1
58.0
66.2
65.9
63.9
63.6
75.7
64.0
58.8.
January 2006 - December 2006
Per Capita Comparison
Agency
Population
Total
Total Crime Per 1,000
Total
Violent Crime Per 1,000
Total
Proprt Ct , +�r 1,
Federal Way
86,530
5,538
64.0
330
3.8
5,208
60.2
Auburn
48,955
3,886
79.4
305
6.2
3,581
73.1
Kent
85,650
6,854
80.0
563
6.6
6,291
73.5
Renton
58,360
4,689
80.3
259
4.4
4,430
75.9
Tacoma
199,600
18,739
1 93.9
20761
10.4
16,663
1 83.5
Tukwila
17,930
3,400
1 189.6
1781
9.9
3,222 1
179.7
VIOLENT CHIME PER CAPITA COMPARISON
Agency
Population
Total
Violent Crime Per 1,000
Federal Way
86,530
330
3.8
Renton
58,360
259
4.4
Auburn
48,955
305
6.2
Kent
85,6501
563
6.6
Tukwila
1 17,9301
1781
9.9
Tacoma
1 199,600
1 20761
10.4
PROPERTY CRIME
CAPITA COMPARISON
enc
Population
Total
Property Crime Per 1,000
Federal Way
86,530
5,208
60.2
Auburn
48,955
3,581
73.1
Kent
85,650
6,291
73.5
Renton
58,360
4,430
75.9
Tacoma
199,600
16,663
83.5
Tukwila
17,930
3,222
179.7
*Per Capita Comparison Data from WASPC Crime in Washington 2006 Annual Report
Page 1 of 1
Jan 2007 - June 2007
Per Capita Comparison
Agency
Population
Total
Total Crime Per 1,000
Total
Violent Crime Per 1,000
Total
Property Crime Per 1,000
King Co SO
Bellevue
Federal Way
87,390
5,142
58.8
287
3.3
4,855
55.6
Kent
_
-
Everett
Auburn
50,470
3,472
68.8
248
4.9
3,224
63.9
Renton
Tacoma
Tukwila
VIOLENT CRIME PER CAPITA COMPARISON
Agency
Population
Total
Violent Crime Per 1,000
Bellevue
King Co SO
Federal Way
87,390
287
3.3
Renton
Kent
Everett
Auburn
50,470
248
4.9
Tacoma
Tukwila
PROPERTY CRIME
CAPITA COMPARISON
Agency
Population
Total
Property Crime Per 1,000
King Co SO
Bellevue
Federal Way
87,390
4,855
55.6
Kent
Everett
Auburn
50,470
3,224
63.9
Tacoma
Renton
Tukwila
Page 1 of 2
10
a]
1.3
7
101
5
4
3
2
Priority 1 Response Time in Minutes
F
E
15
I[!
13
12
11
10
Priority 2 Response Time in Minutes
3
January February March April May June July August September October November December