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Council PKT 10-16-2002 Special - Study Session AGENDA FEDERAL WAY CITY COUNCIL Special/Study Session Council Chambers - City Hall October 16, 2002 - 5:30 p.m. (www. ci.federal-way, wa. us) I. CALL MEETING TO ORDER II. 2003-2004 BIENNIAL BUDGET October 1st Study Session Follow-Up Department Overview Presentations: Parks/Recreation/Cultural Services Department Public Safety Department III. ADJOURNMENT TO: City Council Members*dzF'-' ~ ' FROM: David H. Moseley, City Managdr./' SUBJECT: Budget Question Follow up This memorandum will address questions that were raised by the Council regarding the 2003-2004 proposed budget. I. What are the projected impacts of the different new revenue options on Citg residents? Estimated Average Total Assumed Annual Cost per Revenue Options Rate?Unit Revenue Consumption/Current Rates Home Voter Approved Property Tax 10¢/$1000AV $520k $200,000 home value $20/yr Utility Tax 0.4% $512k $4,000 utility bill $16/yr , Admissions Tax 5% $550k 4 movies/yr, family of 4, ~ $8.5/ficket $6.8/yr Permit Fee 14.6% inc. $175k Permit to replace an electric $4.45 hot water tank: $30.5 Surface Water Fee 6.5% inc. $195k $74.4/yr $4.8/yr 2. What other cities charge for their school resource officers? Are we recovering enough, or do we need to charge more? Currently, a fully equipped officer costs $77,727 a year, including equipment depreciation; 75% will be $58,295. The proposed 2003 reimbursement amount is $51,811. Staff called south King County cities and school districts for their SRO arrangements. The Auburn School District employs its own sworn police force, but does contract with the City of Auburn for additional security as needed on an hourly basis. The table below shows the number of officers provided and amount charged for each officer in other south King County Cities. Officer provided Reimbursement City District by No. of SRO Per officer Federal Way Federal Way City 6 $51,811 ** Kent Kent City & KC I each $90,000 Renton Renton City 4 $35,000 SeaTac Highline City 2 $-0- now, and $15,000 proposed Tukwila Tukwila City 1 $-0- ** With $51,811 each officer for schools located in City limits (cover 75% of the cost), and $69,081 for school outs/de the city (intended to cover 100% of the cost) 3. How many layoffs would result from a conversion of positions in the Public Safety Department? }Vhat would the ramifications be if we don't provide those additional officers? Of the four positions converted to police officers, two would result in layoffs. Those impacted will be eligible to apply for other open positions in the City. Consistent with prior budget layoffs, the City will continue to provide group medical benefits for those impacted for a period up to 3 months and provide outplacement assistance. Police calls for service increased by 13.5% in the first six months of this year. The six additional patrol officers will add an officer to the existing ten per squad, or an increase of 10%. This addition will help the City to maintain 2001 police response times. 4. How does Federal l, Vay's officer-per-1000 population ratio compare with other cities? The department will have a total of 116 sworn officers in 2003 if the proposed changes are approved by the Council. Based on the 2002 population of 83,850, this is 1.38 sworn- officers per 1000 population served. Attachment 1 shows a comparison of police department personnel of all King County cities for 2001. 5. Present a breakdown of sales tax revenues by taxing jurisdiction as we did for property taxes and how our sales tax revenues compare with other cities. We have added a breakdown of sales tax revenue by taxing entities to the presentation file posted on our web site. A comparison of Federal Way's sales tax collections with other King County cities is shown on Attachment 2. 6. How do tax rates in Federal Il/ay compare to other Six Flags facility locations? Six Flags operates 30 facilities in 15 states throughout the United States. Attachment 3 shows the state and local taxes for one location in each of the states. Most of the tax information was obtained by searching through state and city websites. 7. l'Vhat reserve funds do the City have and how much ? The breakdown of projected 2004 fund balances and their purposes are shown on Attachment 4. 8. gl/hat are the tax rates of other King County Cities? Attachment 5 shows the rate of various local option taxes of King County cities. 2 Attachment 1: King County Jurisdictions 2001 Officers Per 1000 Population InorderofOfficers ,er 1000 2001 Dept Officers Dept Depff Cities w/own Police Force Population Sworn / 1000 Total 1000 Snoqualmie 3,416 i 15 4.39 17 4.98 Tukwila 17,230 70 4.06 85 4.93 Medina 2,990 11 3.68 12 4.01 ClTde Hill 2,900 8 2.76 9 3.10 Black Diamond 4,015 10 2.49 10 2.49 Algona 2,500 6 2.40 8 3.20 Seaitle 568,100 1,287 2.27 1,799 3.17 Issaquah 12,950 28 2.16 54 4.17 Duvall 4,860 10 2.06 11 2.26 Normandy Park 6,405 12 1.87 14 2.19 Auburn 43,985 82 1.86 112 2.55 Pacific 5,525 10 1.81 12 2.17 Enumclaw 11,180 19 1.70 31 2.77 Lake Forest Park 13,160 22 1.67 26 1.98 Renton 51,140 85 1.66 119 2.33 Bothell 30,470 50 1.64 76 2.49 Carnation 1,920 3 1.56 3 1.56 Bellewae 111,500 170 1.52 274 2.46 Kent 81,900 123 1.50 179 2.19 Redmond 45,490 68 1.49 99 2.18 Des Moines 29,600 44 1.49 57 1.93 Mercer Island 21,970 31 1.41 42 1.91 Kirkland 45,770 62 1.35 91 1.99 Average 50,119 97 1.94 137 2.73 Contract Cities Beaux Arts Village 310 Burien 31,830 ' 21 0.66 22 0.69 Covington 13,840 9 0.65 9 0.65 Hunts Point 455 Kenmore 18,790 12 0.64 12 0.64 Maple Valley 14,590 11 0.75 11 0.75 Newcastle 7,815 7 0.90 7 0.90 North Bend 4,755 Sartumamish 34,560 15 0.43 16 0.46 SeaTac 25,380 27 1.06 28 1.10 Shoreline 53,150 35 0.66 37 0.70 Skykomish 215 Woodinville 9,210 8 0.87 8 0.87 Yarrow Point 1,010 Uninco~orated Kinl~ County 354,104 372 1.05 672 1.90 Kin~ Count,/Department Total 570,014 517 0.91 822 1.44 I C°unt~vide Avera[[e I 45,458I 81 I 1.48 I 117 ] 1.88 Federal Way 2002 I 83,850 109 1.30 151 1.80 Proposed 2003I 83,850 116 1.38 155 1.85 3 Attachment 2: Total and Per Capita 2001 Sales Tax Revenue Of King County Cities Per Local Sales Capita Tax Sales Entity Population Revenue Tax Ranking Medina 2,990 3,277,318 1,096 1 Tukwila 17,230 12,956,703 752 2 Issaquah 12,950 7,453,874 576 3 Woodinville 9,210 4,603,160 500 4 Redmond 45,490 16,826,809 370 5 SeaTac 25,380 8,022,795 316 6 Renton 51,140 15,549,781 304 7 Hunts Point 455 131,990 290 8 Auburn 43,985 12,597,858 286 9 Bothell 30,470 8,177,632 288 10 North Bend 4,755 1,258,087 265 11 Kirkland3 45,770 11,751,696 257 12 Kent 81,900 20,331,188 248 13 Bellevue 111,500 26,570,663 238 14 Seattle 568,100 121,136,910 213 15 Mercer Island 21,970 4,356,551 198 16 Enumclaw 11,180 1,741,844 156 ~ 17 Carnation 1,920 288,054 150 18 Skykomish 215 30,184 140 19 Yarrow Point 1,010 128,343 t27 20 Federal Way 83,890 10,368,153 124 21 Burien 31,830 3,742,2~15 118 22 Duvall 4,860 488,685 101 23 Shoreline 53,150 5,070,005 95 24 Newcastle 7,815 737,891 94 25 AJgona 2,500 216,603 87 26 Maple Valley 14,590 1,212,360 83 27 Clyde Hitl 2,900 211,257 73 28 Covington 13,840 992,953 72 29 Kenmore 18,790 1,149,678 61 30 Des Moines 29,600 1,625,546 55 31 Sammamish 34,560 1,749,963 51 32 Beaux Arts Village 310 14,318 46 33 Black Diamond 4,015 171,913 43 34 Normandy Park 6,405 264,613 ~ 41 35 Lake Forest Park 13,160 495,211 38 36 Pacific* 5,525 Snoqcalmie * 3,416 · Pacific and Snoqualmie do not have sufficient data to compare and Milton has only a small portion in KC therefore is not included in the Comparison either. 4 ~T.'~.,,f~i.,~u.,Ca~4~l:~/ec~ 102,589 I i63,547 39.042 3, 8~41 i 10.~57 I .,795 9.629; 13,3~t 25174t I 8 i 1/2 375 ! 93 282 282 i - ; 282 14j 3/1 Celebration Park Aritficial Turf Upgrade 2.000 250 1,750 I ; 1.7,50, - I 1,750 151 3 Parks Major Maintenance 300 300 100 50 _50 I 50 i 50 100 300  201 4 ParkAcqL~sit~or~ SO0 i ~OO 150 ~ 150 ! 150 Su~otal SWMCapital Projects I 12.771 i 12,771 GrandTotal I 177,066 i IQ6,506  F FEDERAL WAY " CONDITIONS & OPERATIONS .. ~;~ ASSESSMENT OF ~c~'.~c^~ KENNETH JONES MEMORIAL POOL :: ~' . FINAL REPORT :':t October 1, 2002 EXECUTIVE SUMMARY INTRODUCTION General The Kenneth Jones Memorial Pool is located adjacent to Federal Way High School. This facility was constructed in 1970 as part of the "Forward Thrust" program. The Pool is owned and operated by King County. The County desires to yield ownership (management and operations) of facilities located with City boundaries. Kenneth Jones Memorial Pool is a candidate for this transfer to the City of Federal Way. Purpose and Scope The purpose of this study is to assist in identifying operational and cost impacts associated with ownership of the pool facility. The general scope of this study is to ascertain the following items: · Operation Cost & Methodologies Maintenance Cost · Forecasted Capitol Expenditure Cost Assessment Team The Team for this assessment consists of the following members: Bruce Gustafson, P.E.: Mr. Gustafson is an associate engineer at Tres West Engineers, and has had extensive pool mechanical design and evaluation experience. He performed the mechanical portion of the 1994 assessment of Kenneth Jones Memorial Pool, and has provided designs for several small projects there since that time. Charles Li, P.E.: Mr. Li is the electrical principal engineer at Tres West Engineers, and has significant experience with swimming pools. Mr. Li is associated with Kenneth Jones Memorial Pool because of past design work at that facility. Rob VanSlyke: Mr. VanSlyke is providing the operational assessment for Kenneth Jones Memorial Pool. His experience is two-fold, he spent many years as director of aquatics for Sumner School District. This experience provides him with the basis for understanding aquatic facility operations. He then acquired a PhD in Education, and has been extensively involved in operations of larger facilities and entire school districts. · Anders Raman, A.I.A.: Mr. Raman specializes in Aquatic Facility Design, and is the Architect of Record at the Weyerhaeuser Goodwill Games Pool in Federal Way. He has provided design services recently for Kenneth Jones Memorial Pool, and is well familiar with that facility. Introduction- I Federal Way Swimming Pool Facility - Program - Feasibility Study by Aquatic Consulting Services, Dr. Rob Van Slyke & Mr. Bill Haugen Executive Summary: October 1, 2002 1. OVERVIEW King County has made the decision to close all Forward Thrust Pools located within incorporated city's by January 1, 2003. The City of Federal Way is evaluating whether or not to assume the operations of the Kenneth Jones Pool require financial subsidy in meeting annual operating expenses. Taking on the ownership and care of such a facility can be a serious financial liability. However, there are ways in which pools can be operated efficiently to minimize financial subsidy. In order to accomplish this, traditional programming will likely suffer some sacrifice. Therefore, decisions of balance between public interest and fiscal efficacy play a role in determining the feasibility cfa pool assumption. ACS was contracted to evaluate the current status of the facility, programs and operations of the Federal Way Pool. Additionally, ACS was engaged to forecast capital facility needs, evaluate operational costs and recommend program/management arrangements to provide guidance in reducing the need for financial subsidy. II. SCOPE OF WORK The following bullets deserve the specific scope of work requested and addressed in this study: + Provide a recommended operation/staffing levels with budget/revenue projections. + Review documentation submitted by King County to determine accuracy and thoroughness. + Provide a summary of current pool programs, operational costa, fees, reYenues, scheduling and contract obligations. '¢' Outline potential parmerships and/or facility improvements to generate additional revenue, increase efficiency and decrease operational subsidies. + Participate in one meeting with City Staff. + Prepare final written report. 1II. DATA COLLECTION METHODOLOGY Information for use in this study was derived by several means including personal observation, one-on-one interviews, examination of reports/records and telephone/interact inquiries. This study is of qualitative design and subject to interpretation. Information critical to making decisions was weighed against the expertise of knowledgeable professionals and accepted industry standards. IV. PROGRAM ANALYSIS A. Staffing: Facility staffing currently includes a pool manager, a senior instructor, a ½ time pool OPerator and about 11,000 hours of part~time lifeguards, instructors and cashiers. Other staffmg and programming scenarios are possible and could lead to operational efficiencies. Under county ownership, centralized leadership substantially mandates this staffing arrangement. Decisions related to program hours and staffing are centralized. Therefore, pool management is limited in its ability to experiment with different program and staffing arrangements that could produce fundamental improvements in service and efficiency. This restricts potential income generation and serves as a frustration to program and customer service improvement initiatives. Potential savings could be realized if pool operations and custodial work were placed within the control and assignment of the manager and delegated to part time staff and contracted workers as needed. TABLE 1: 2001-02 County Staffing Arrangement Position Hourly Rate Annual Salary Annual Salary Total Annual (range) (range) (average) Cost Aquatic Supervisor N/A $45,000 N/A $45,000 Senior Instructor N/A $38,000 N/A $38,000 Pool Operator N/A $25,000 N/A $25,000 Part-Time Instr/Grds $7.00-9.10 11,000 hours $8.52/hour (ave) $93,691 Benefits $53,431 TOTAL SALARIES $255,122 Federal Way Pool Study - Operational Assessment 2 Other staffing and programming scenarios are possible and could lead to operational efficiencies. TABLE 2 below offer several levels of options with varying subsidy requirements. TABLE2:2002-03 Recommended Staffing Arrangement Position Hourly Rate Annual Salary Annual Salary Total Annual (range) (range) (average) Cost Aquatic Supervisor N/A $42,816-54,168 $46,512 $46,512 Assistant Supervisor N/A $34,284-43,368 $37,248 $37,248 Maintenance/Operator N/A $37,200 $37,200 $37,200 Senior Instructor $11.50-13.50 $23,920-28,080 $26,000 $26,000 Part-Time Instr/Grds $9.00- I 1.00 14,000 hours $ l 0.00]hour $140,000 Benefit~ 28% $65,649 TOTAL $352,609 Salary range is consistent with the City of Federal Way current salary schedule. The crucial element is attention to customer satisfaction through a systemic organizational focus toward continual improvement. The bottom line should be a comparison of profits and expenditures, not a particular limit on staffing. B. Management and Administration Administrative functions under King County role have been predominantly centxalized. This management situation tends to discourage entrepreneurial spirit and diminish ownership as it relates to operational and fiscal efficiencies. This is an area of great potential under City of Federal Way ownership in terms of promoting motivation for continual improvement and increased efficiency. Localizing the authority and responsibility of all functional aspects of the facility, honors the understanding that prograraming, marketing, fee structures, energy conservation and facility care are connected and interdependent. C. Programs and Scheduling Programs currently offered at the Federal Way Pool are similar in type, scope and schedule to other pools. There is room for additional group swim lesson programming. An emphasis on swimming instruction provides the best leverage point for increasing customer/public satisfaction and reducing funding subsidies. Programs, in general, should be monitored and evaluated for their contributions to the overall missio~n of providing value to customers and reducing operational subsidies. Innovation in program and scheduling should be encouraged using legitimate evaluation critexia. ACS advocates the use of special events programming to attract new patronage and interest. Additionally, we advocate creative scheduling and programming to maximize the efficient use of pool space and time in meeting varied interests and needs. D. Fees The current fee structure is similar to other pools. The City will need to determine its own fee schedule as deemed appropriate. ACS does recommend consideration ora differentiated fee scale for residents and non-residents, however city's surveyed for fee comparisons (Table 3) do not use a differentiated fee schedule. This char~ge should be marketed as providing discounts to local citizens. A fee structure similar to the one below might be considered. POOl, FEES *NOTE: All local fees listed are the same as current King County fees. Non-local fees are new. GROUP LESSONS: Local $32/session Nan-Local $36/session *Session consists of eight 25-minute classes PRIVATE LESSONS:Local $20/lesson Non-Local $25/lesson *Each lesson is one-to-one for 30 minutes POOL RENTALS: Up to 25 persons Local $ 60.00/hour Non-Local $ 72.00/hour 26 to 60 persons Local $ 80.00/hour Non-Local $ 96.00/hour 61 to 90 persons Local $100.00/hour Non-Local $120.00/hour 91 to 120 persons Local $125.00/hour Non-Local $150.00/hour 121 to 150persons Local $150.00/hour Non-Local $180.00/hour PASSES: 3-Month ,1 -Year Local Non-Local Local Non-Local Youth $ 55 $ 66 $140 $168 Adult $ 90 $108 $230 $286 Family $160 $192 $368 $442 Senior $ 55 $ 66 $140 $168 WATER EXERCISE PUNCH CARDS (10 VISISTS): Adult Local $ 37 Non-Local $ 45.00 Senior Local $ 25 Nan-Local $ 30.00 Federal Way Pool Study - Operational Assessment 3 REGULAR ADMISSION FEES (PER VISIT): *No differentiated fees Public/Family Swims Reg. $2.00 Srs./Disabled $1.50 Adult/Lap Swims Reg. $3.00 Srs./Dis. $2.00 Comparison data for some other facilities is included in TABLE 5 below. It is hoped that this will serve as a useful tool in setting a fee structure for the pool under City ownership. TABLE3: FEE SCHEDULE COMPARISONS Program Sample King Cty. Issaquah Bellevue Shoreline Norpoint Group $4~4.50/less $4.00/Ic~s $4.40~5.50/1 $4.25/less $4.69/tess $4.50/Icss Private $20/25 $20/25 ? $25 ? $20 0-25 $60/72 $58 $125 $125 $52 N/A 26-60 $80/96 $80 $150 $150 $73 N/A 61-90 $100/120 $100 $175 $175 $94 N/A 91-120 $125/150 $125 $200 $200 SI15 N/A 121-1S0 *150/180 SI50 *225 $250 *135 N/A Passes 3 mo. ~ ~ ~ ~ ~ ~ Youth $55/66 $55 $50 $80 $57 N/A Adult $90/108 $90 $75 $120 $88 N/A Family $160/192 $160 $150 $190 $135 N/A Senior $55/66 $55 N/A ' No discount $58 N/A Passes 1 yr. ~~~~~~ Youth $140/168 $140 $175 N/A $135 N/A Adult $230/286 $230 $300 N/A $213 N/A Family $368/442 $368 $500 N/A $354 N/A Senior $140/168 $140 N.A./$175 N/A $135 N/A Water Exercise ~ ~ ~ ~ ~ ~//~~ Adult: 10 sessions $37/45 $37 ? ? $37 $4.50/less Senior: 10 sessions $25/30 $25 ? ? $27 No discount Lap/Adult Swims ~ ~ ~ ~ ~~ ~ Regular $3.00 $3.00 $4.00 $4.00 $2.75 ? Seniors $2.00 $2.00 $3.00 No discount $2.75 ? Public Swims ~ ~ ~ ~~ ~ ~~ Youth $2.00 $2.00 $3.00 $3.00 $1.75 ? Adult $2.00 $2.00 $4.00 $4.00 $2.75 ? Family $2.00 $2.00 $10.00 No discount $7.25 ? Seniors $1.50 $1.50 $3.00 No discount $2.75 ? V. FISCAL ANALYSIS & FEASIBILITY A. Operational Costs Future revenue potential is based on modifications as recommended and the development of a practical working budget that will allow the City of Federal Way to operate the pool facility/programs at an acceptable level of support. The simplified sample budget below corresponds to the recommended staffing arrangements displayed in TABLE2. This budget is not intended as a comprehensive line item budget. The intended purpose is for general planning and consideration in making a decision regarding city takeover of the facility. B. Proposed Budget TABLE 4: RECOI~MENDED BUDGET REVENUE Amount Group Swimming Lessons (5000 students ~ $33.20 avc./session) $166,0~0 Private Swimming Lessons (1000 lessons ~ $22.00 ave./lesson) $ 22,000 Swim Passes (200 passes ~ $70.00 aveJpass) $ 14,000 Admission Fees (22,400 admissions ~ $2.27 avcdadmission) $ 50,848 Rentals (240 rentals ~1 $70.00 ave./rcntal) $ 24,000 Special Events (5000 admissions ~ $5.00 avedadmission) $ 25,000 Concessions and Resale (candy, pop, goggles, caps, etc.) $ 12,000 TOTAL $313,848 EXPENDITURES Amount Full-Time Wages and Benefits (Pool Supervisor, Asst. Supervisor, Sr Instr., Maint. - benefits 28% ) $188,109 part-Time Wages/Benefits (Guards-2500 hrs., Instr.-9000 hrs., Cashlers-2500 hrs. - benefits 17.5% ) $164,50~ Utilities (Water, Sewer, Electricity, Natural Ga~) $ 80,000 Supplies and Materials (Chemical, Equipment, Paper, c'tc.) $ 20,000 Telephone, Copies, Printing $ 12,000 *Innovation Fund $ 5,000 Federal Way Pool Study - Operational Assessment 4 M aintenance/Repair (Ongoing shorl4crm repairs) $ 15,000 Capital Investraent Reserves $100,000 5% Overhead (payroll, accounting, insurance etc.) $ 29,230 TOTAL $613,839 NET SUBSIDY ~$299,991> C. Innovation Fund * The inclusion of an "innovation fund" as a budgeted line item is an idea worthy of consideration. The block of money, say $5000 per year, would be set aside specifically for servicing and revenue generation exploration. D. Marketing Quality programs that tend specifically and successfully to the needs and desires of customers perpetuate their own popularity and sequester patronage. Given the tenuous nature of aquatic facility finances, very careful attention to this aspect of marketing is essential. Regular customers pay close attention to "the little things" and, therefore, management/staff need to pay close attention as well. This includes the aesthetic appeal of the facility (cleanliness, functionality, signage, convenience, etc.), the program offerings, and most important, the climate of the organization as exemplified by employee behavior aligned with the mission of building/maintaining a positive environment. Marketing programs need to include consideration of likely venues where customers congregate. An example might be local movie theatres. Children and their parents are captive audiences to screen advertisements prior to movie showings. E. Risk-Benefit Analysis Four potential areas of risk deserve consideration in this analysis. These include financial risk tied to maintenance and long-term capital costs, financial risk associated with annual operating costs, risk related to public opinion and rislUrespons~ility in the performance of facility and program oversight. These will be discussed in the context of previous discussion below. MAINTI~qANCFJCAPITAL COSTS: King County Executive, Ron Simms, included certain financial incentives in his proposal to turn over ten of the swimming pools currently owned and operated by the county to local entities. For the Federal Way Pool, these incentives include five years of capital costs estimated by the county to be $75,000,the equivalent of mothballing expenses for calendar year 2003 budgeted at $76,000 and an additional $50,000 budgeted by the county for capital over the next two years. The total of $125,000 should be set aside as capital cost contingency and carried forward from year to year along with $100,000 annually budgeted for capital reserve purposes. OPERATING COSTS: A target of net annual deficit spending of $300,000 is realistic provided ACS recommendations for programming, scheduling, management, marketing, and customer service are implemented effectively. ACS is confident that good management can and will produce a favorable financial outcome related to annual operations. PUBLIC OPINION; These risks are the normal accepted liabilities associated with the ownership and operation of any highly visible public facility. Swimming pools carry their own unique set of concerns in this domain. Proper maintenance of the facility and quality management are the best protection from negative public sentiments. PROGRAM OVERSIGHT: Taking on the Federal Way Pool and its programs will have an impact on City overhead. With roughly 35 employees, most of whom are part-time, human resource and payroll services will be affected. The effect on other services is hard to determine, but should not be overly consequential. There will be an additional burden on existing maintenance personnel depending on what portion of maintenance and custodial respons~ilifies is contracted or delegated to pool personnel. An analysis of financial impact is advised during the first year of operafinn under city ownership should that occur. VI. PARTNERSHIPS The development of partnerships that are mutually beneficial require the direct interaction of officials between the entities involved over time. Nevertheless, it is our understanding that the Federal Way School Distxict would be amenable to a lease arrangement with the City of Federal Way similar to the one currently in force with King County. Federal Way Pool Study- Operational Assessment 5 VI1. RECOMMENDED CAPITAL COSTS Kenneth Jones Memorial Pool Item 0-5 Year Cost 6-10 Year Cost Priority _Architectural Retrofit vestibule/lobby for barrier-free access $9,600 2 Extend concrete landings to lawn surfaces $2,160 3 Clean, seal & repair brick walls $68,250 Clean up and restore exterior courtyard $16,050 Repair natatorium control area wall/install wainscot $3,225 2 Mechanical Replace domestic water piping $100,000 3 Replace pool filters $25,000 1 Replace boiler $75,000 1 Repair refrigerant system $1,000 1 Remove desuperheaters $3,000 Replace controls ,. $70,000 Re-commission front area air handling system $15,000 1 Electrical Dressing room light fixture seismic bracing $600 4 Exit light battery back-up $1,000 2 Exterior security light fixtures $4,500 1 New fire alarm system $7,000 3 Total Recommended Capitol Cost: $244,085 $157,300 Priorities Capitol Cost Priorities have been assigned, based on the subjective judgment of each individual assessor. Two items were considered in providing a rating. The first was the potential health or safety imparts. The second was the cost or facility impact of a failure. For example, if the boiler fails, the facility will have to be closed for about two months for replacement or a week or so for repairs. The items assigned priority one are: · Replace pool filters: The effectiveness of the pool filters is degrading, and could possibly become a health and safety issue. · Replace boiler: The boiler is nearing the end of its useful life. This failure is increasingly likely, thus the high priority. · Repair refrigerant system: This system repair is relatively inexpensive, and will improve operational efficiency. The high priority is based on the low cost and benefit of repair. · Exterior security light fixtures: This is a public safety issue that should be implemented at the first opportunity. Only near-term capital costs have been identified with priorities. VIII REVENUE ENHANCING FACILITY IMPROVEMENT SUGGESTIONS There are some recommended facility alterations that could have a positive effect on customer satisfaction and fiscal solvency. These are not essential changes, but they could add substantially to the viability of operating at l(~wer subsidy levels in the long term. 1. Enclosing 40 x 40 courtyard area to be used for exercise classes, meeting space and special events such as birthday parties, etc. The initial investment would cost roughly $150,000 - $300,000. Resulting revenue from this improvement is difficult to assess. Federal Way Pool Study - Operational Assessment 6 2. Adding a large water slide would increase recreational participation and enhance revenue-producing opportunities. Costs for such slides vary greatly and depend on size, shape and required building modifications. Adding such a slide would be a financial risk. However, other facility owners that have done this indicate positive results in public perception and increases in revenue. Cost range for a water slide $25,000. IX SUMMARY OF RECOMMENDATIONS · ~' Place authority and responsibility for pool water quality within the administrative domain of pool management. o:. Place authority and responsibility for building cleanliness within the administrative influence of pool management. · :. Place the responsibility of monitoring most mechanical system preventative and ongoing maintenance programs within the supervisory domain of pool management. · :, Place oversight responsibility for ongoing maintenance and short-term upkeep in the hands of pool management. 'l° Commit to exceptional ongoing maintenance and custodial upkeep. o:. Consider terms of transfer with King County that includes: a. One year of mothballing costs at $75,000. b. Minimum of $250,000 for capital improvements. c. An initial thorough professional cleaning of the facility at county expense prior to takeover. d. Repair of any outstanding maintenance concerns at county expense prior to takeover. e. All equipment to remain with facility. · :. Effective marketing of programs and facility. o:. Emphasis on group swimming instruction. · :. Attention to customer service/satisfaction and appropriate training to support. · :' Support for innovation (research and developmen0 in programming/scheduling. · :. Clearly articulated high standards for personnel and commensurate accountability. o~- Heavy emphasis on preventative maintenance. Recommended Capitol Costs Kenneth Jones Memorial Pool Item 0-5 Year Cost 6-10 Year Cost Priority Architectural Retrofi. t vestibule/lobby for barrier-flee access $9,600 2 Extend concrete landings to lawn surfaces $2,160 3 Clean, seal & repair brick walls $68,250 ,Clean up and restore exterior courtyard $16,050 Repair natatorium control area wall/install wainscot $3,225 2 Mechanical Replace domestic water piping $100,000 3 Replace pool filters $25,000 1 Replace boiler $75,000 1 Repair refrigerant system $1,000 1 Remove desuperheaters $3,000 Replace controls $70,000 Re-commission front area air handling system $15,000. 1 Electrical Dressing room light fixture seismic bracing $600 4 Exit light battery back-up $1,000 2 Exterior security light fmtures $4,500 1 New fire alarm system $7,000 3 Total Recommended Capitol Cost: $244,085 $157,300 Notes: 1. Priorities were assigned based on a subjective evaluation ofhealtbJsafety inpacts or the effects of the system failure. 2. Items in the 6-10 year cost category were not assigned a priority. Expected maintenance items (components are in good shape, but some type of significant regular maintenance is required) Item Cost Pool Liner Plastering (10 years from now) $55,000 Asphalt Shingle Roof(20 years from now) $90,000 Flat Roof(10 years fi'om now) $8,000 Capital Enhancements to Facility Item Cost Restore Existing Courtyard $20,000 upgrade Gutter to Deck Level $40,000 Install Anchors in Pool Bottom $2,000 Water Slide $12,000 Install Kalwall Panels in Exist Wall (assume 300 SF) $25,000 Executive Summary - 8