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Forest River Operations Plan1 | P a g e Forest River Park Pool – Salem, MA Operations Plan Assumptions The following are basic assumptions for the operations plan for the City of Salem Forest River Park Pool operational plan. It is important to note that the information is in DRAFT form and B*K welcomes further discussion and refinement of the plan. •The operations plan is based on floor plans provided by BH+A. •Changes in the final concept plan could impact staffing levels. •The first year of operation will be 2021 or later. •The season that the model is budgeted for is as follows: o Memorial Day Weekend – Saturday, Sunday, Monday (full operations) o 3 Weeks After Memorial Day – Evening and Weekends Only o Full Operation through Labor Day Weekend (11 Weeks) o Total Season – Approximately 14 Weeks •The presence of other providers in the market will remain the same. •The operational plan does not identify an operator for the facility. It is unclear at this time if the City of Salem, or the YMCA would operate the facility. However, the operational plan provided should be consistent regardless of operator. •The minimum wage in Massachusetts in 2019, is $12.00 per hour with anticipated increases in upcoming years. B*K is basing minimum wage rates on the assumption that by the time the pool opens minimum wage will be in the $15.00 per hour range. •No internal department charge backs have been shown in this budget and will need to be added. Items like mowing, landscaping, trash removal, etc. •Operational projections are consistent with “typical” weather patterns for region. •B*K has assumed that winterization and de-winterization will be conducted by a third- party independent contractor. •B*K has assumed that operator will have a full-time staff member that will spend a minimum of 20 hours per week at the pool working with the filtration system and pool Plan based upon designs for Nov. 2019. This plan is based upon initial assumptions on fees and program costs in order to start the process of projections. None of these have been formalized. In addition, some changes to the project are not reflected in this plan. 2 | P a g e chemicals. Also there will be a custodian on-site 3 hours a day, 7 days a week. Other custodial task will be the responsibility of part-time staff. • The lifeguard schedules are appropriate based on projected usage, which is to say the number of lifeguards varies by time of the day and program taking place at the facility. It is also important to note that B*K has adopted a philosophy in the operational plan that has a lifeguard on duty at any time an individual is in the water. Capital Improvement / Renovation Allocation: B*K has allocated $25,000 per year to a sinking fund for the pool. The totals in the 5-year projection are cumulative so that at the end of the 5th year there is a $125,000 balance in the fund for repairs, maintenance, refreshing. Food Assumptions: B*K has assumed that food through concessions would be available at the facility. The offers at concessions would be primarily prepackaged items, and total sales will be determined on a per-cap basis, with 30% of total sales allocated for product purchase. 3 | P a g e Part Time Staffing Positions Hourly Rate Front Desk Attendant $16.00 Concession Attendant $16.00 Pool Attendant $15.50 Lifeguard $18.00 Head Lifeguard $20.00 Pool Supervisor $24.00 Aquatic Ex. Instructors $25.00 Swim Instructors $20.00 Birthday Party Attendant $16.00 Benefit Factor 7.65% • B*K factored early arrival, late departure, for part-time staff to allow for setting the pool deck and provide training windows for lifeguards and instructors. • Pool Supervisor would be responsible for the full operation and when on-site would supervise the front desk and concession operations. The ideal scenario would be this position to work at peak use times Mon-Sun. During those peak use times there would also be a Head Lifeguard in place to oversee pool deck operations. • Head Lifeguard, in absence of the Pool Supervisor this position would function as the supervisor for the pool operations, concessions, and front desk. 4 | P a g e The following information are current program fees and rental rates need to be reviewed by the City of Salem. Rental Rates: Area Resident Non-Resident Pool (2 hours minimum)1 $500 $650 Community Room (2 hours minimum) $75 $95 Community Room Day Rate2 $750 $950 Passes/Membership: Type Resident Non-Resident Family Pass $150 $240 Family Pass LI $95 $152 Youth/Senior Pass $70 $115 Adult Pass $85 $140 Lap Swim Only Individual Pass $70 $115 Daily Admission: Type Resident Non-Resident Family $25 $40 Youth/Senior $7.00 $12.00 Adult $9.00 $15.00 Lap Swim Only Individual $5.00 $8.00 Dive-In Movie $5.00 N/A Camp Group Rate/Person3 $3.00 $5.00 • For passes/membership and daily admission the differential between Resident and Non- Resident rates is approximately 160%. 1 Rental rates include lifeguard fees. For a 2-hour rental it would require 7 lifeguards @ $18/hour for $252 and 1 head lifeguard @ $20/hour for $40. This allows for a $200 profit on Resident rentals and a $250 profit on Non - Resident rentals. Rental rates also are reflective of the fee for the full 2 -hour rental. 2 Based on a 10-hour day. 3 Resident v. Non-Resident rate for camps is based on where the camp is located, not the residency of the individual campers. Only available Mon-Fri. 5 | P a g e Program Fees: Type Resident Non-Resident Group Swim Lesson $75.00 $95.00 Private Swim Lessons $150.00 $190.00 Group Exercise $50.00 $65.00 • Group Swim Lessons – assumes 8, 35-minute classes running Mon-Thu. • Private Swim Lessons – assumes 4, 30-minute classes scheduled w/ instructor while pool is available, excluding private rentals. • Group Exercise – assumes 8, 60-minute classes running Mon/Wed or Tue/Thu. Typical Weekday Schedule (Mon-Thu) • 7:00A-11:30A – Lanes Available for Lap Swim • 8:00A-9:00A – Group Exercise Class • 9:00A-12:00P – Swim Lessons • 12:00P-7:00P – Open Swim • 8:00-10:00P – Rental Availability Typical Saturday Schedule • 9:00A-12:00P – Lanes Available for Lap Swim • 12:00P-6:00P – Open Swim • 7:00-9:00P – Rental Availability Typical Sunday Schedule • 10:00A-12:00P – Staff Training • 12:00P-6:00P – Open Swim • 7:00-9:00P – Rental Availability 6 | P a g e 5-Year Projection Year 1 Year 2 Year 3 Year 4 Year 5 Expenses $440,980 $454,209 $467,836 $491,227 $515,789 Revenue $324,242 $346,939 $364,286 $375,214 $382,719 ($116,738) ($107,270) ($103,550) ($116,013) ($133,070) Percentage 73.5% 76.4% 77.9% 76.4% 74.2% Capital $25,000 $50,000 $75,000 $100,000 $125,000 Important Notes: • Fee structure is based off information provided by the City and is reflective of the market. It may become an obstacle for some residents. • The proposed revenue total is reflective of a “pay to participate” swim lesson model, and the program is at 90% capacity. • The revenue generation does not include a birthday party option. • The revenue model does not include revenue generated from the Community Room. This warrants further discussion with the client in terms of the season and price point and should be excluded from the aquatic budget model. • Total attendance for the season is projected at 75,492. o Family Attendance – average of 3 individuals per family, visiting 2-3 times per week. o Youth/Senior/Adult – average visits of 2-3 times per week. • Daily admission assumes an average of 43 resident sales and an average of 11 non- resident sales over an 88-day season. The 88 days assumes that 10 days were lost to weather. • Pass sales. 5.1% of households in the City of Salem having purchases some for of pass. When one combines the resident and non-resident pass sales it equates to 1.2% of the Primary Service Area. • There is a total of 1,733,109 swimmer days in the Primary Service Area (which includes the City). The attendance of 75,492 is approximately 4.4% of the total swimmer days. Program Revenue Option #1 1 Aquatic Revenue Expenses Aquatic Exercise Sessions Rate Participants Passes Hours Days/Wk Weeks Instructors Mon/Wed 2 $50 25 $1,250 1.5 2 8 1 24 $25.00 $600.00 Tue/Thu 2 $50 25 $1,250 1.5 2 8 1 24 $25.00 $600.00 $2,500.00 $1,200.00 Swim Lessons Days Times Participants Hours Classes Sessions Instructors Hours Rate Session 1 M-R 4 30 120 3.5 8 1 6 168 $20.00 $3,360.00 Session 2 M-R 4 30 120 3.5 8 1 6 168 $20.00 $3,360.00 Session 3 M-R 4 30 120 3.5 8 1 6 168 $20.00 $3,360.00 Session 4 M-R 4 30 120 3.5 8 1 6 168 $20.00 $3,360.00 Capacity Rate 90%432 480 $75.00 $32,400.00 $13,440.00 Private Lessons Sessions Months Fee Hours Classes Sessions Instructors Summer 10 2 $150 $3,000 2.0 1 20 1 40 $20.00 $800.00 $3,000.00 $800.00 Dive in Movie Events Attendance Fee 3 300 $5.00 $4,500.00 Aquatic Programs $42,400.00 Aquatic Program Staff $15,440.00 Ballard*King Associates Rental Revenue 1 Rate Per Week Week Hours Rented Hours Available Lifeguard Head LG Pool Rental (res)$500 2 14 $14,000 56 196 $18 $7,056 $20 $1,120 Rate Hours Week Hours Rented Hours Available Pool Rental (non-res)$650 1 14 $9,100 28 196 $18 $3,528 $20 $560 Total Total Percentage 84 196 42.9% Total $23,100 $11,711 Ballard*King Associates Admision Membership 1 Res-Member Fees Number Revenue Res-Member Fees Number Revenue Res Non-Res Attendance Family $150.00 450 $67,500.00 Family $240.00 100 $24,000.00 Family 32,400 10,800 43,200 Family LI $95.00 200 $19,000.00 Family LI $152.00 25 $3,800.00 Family LI 14,400 2,700 17,100 Youth/Senior $75.00 150 $11,250.00 Youth/Senior $115.00 50 $5,750.00 Youth/Senior 3,600 1,200 4,800 Adult $85.00 100 $8,500.00 Adult $140.00 25 $3,500.00 Adult 2,400 600 3,000 Lap Swim Only $70.00 50 $3,500.00 Lap Swim Only $115.00 25 $2,875.00 Lap Swim Only 2,400 600 Total 950 $109,750.00 Total 225 $39,925.00 Grand Total $109,750.00 Grand Total $39,925.00 Res-Daily Fees Number Revenue Nres-Daily Fees Number Revenue Res Non-Res Attendance Family $25.00 3 $75.00 Family $40.00 1 $40.00 Daily 3,784 968 4,752 Youth/Senior $7.00 20 $140.00 Youth/Senior $12.00 5 $60.00 Adult $9.00 15 $135.00 Adult $15.00 3 $45.00 Lap Swim Only $5.00 5 $25.00 Lap Swim Only $8.00 2 $16.00 Total 43 $375.00 Total 11 $161.00 Days 88 Days 88 Grand Total $33,000.00 Grand Total $14,168.00 Group Rate (res)Fees Ave Size Revenue Group Rate (nres)Fees Ave Size Revenue Res Non-Res Attendance Participants $3.00 40 $120.00 20-39 Participants $5.00 40 $200.00 Group 1,760 880 2,640 Number of Groups 44 Total 22 Total Attendance 75,492 Grand Total $5,280.00 Grand Total $4,400.00 Salem Primary Service Households 18,714 98,035 Percent 5.1%1.2% Membership $149,675.00 74.1% Daily $47,168.00 23.3%Swimmer Days 1,733,109 Group Rate $5,280.00 2.6%Percent 4.4% Total $202,123.00 Ballard*King Associates Part-Time Staff Detail 1 Head Lifeguard (week)Lifeguard (week)Pool Attendant (week)Front Desk (week)Concessions (week) Days Shift Time Staff Days Shift Time Staff Days Shift Time Staff Days Shift Time Staff Days Mon 6:45A-12:00P 5.5 1 5.5 Mon 6:45A-9:00A 3.5 1 3.5 Mon 11:30A-6:30P 7 1 7 Mon 7:00A-12:00P 5 1 5 Mon 11:30A-7:30P 8 1 8 8:45A-12:00P 3.5 3 10.5 11:30A-5:00P 5.5 2 11 Tue 6:45A-12:00P 5.5 1 5.5 11:30A-7:30P 8 8 64.0 Tue 11:30A-6:30P 7 1 7 4:30-7:30P 3 1.5 4.5 11:30A-7:30P 8 1 8 Tue 6:45A-9:00A 3.5 1 3.5 Tue 7:00A-12:00P 5 1 5 Tue Wed 6:45A-12:00P 5.5 1 5.5 8:45A-12:00P 3.5 3 10.5 Wed 11:30A-6:30P 7 1 7 11:30A-5:00P 5.5 2 11 11:30A-7:30P 8 1 8 11:30A-7:30P 8 8 64.0 4:30-7:30P 3 1.5 4.5 Thu 6:45A-12:00P 5.5 1 5.5 Wed 6:45A-9:00A 3.5 1 3.5 Thu 11:30A-6:30P 7 1 7 Wed 7:00A-12:00P 5 1 5 Wed 11:30A-7:30P 8 1 8 8:45A-12:00P 3.5 3 10.5 11:30A-5:00P 5.5 2 11 Fri 6:45A-12:00P 5.5 1 5.5 11:30A-7:30P 8 8 64.0 Fri 11:30A-6:30P 7 1 7 4:30-7:30P 3 1.5 4.5 11:30A-7:30P 8 1 8 Thu 6:45A-9:00A 3.5 1 3.5 Thu 7:00A-12:00P 5 1 5 Thu 8:45A-12:00P 3.5 3 10.5 11:30A-5:00P 5.5 2 11 11:30A-7:30P 8 8 64.0 4:30-7:30P 3 1.5 4.5 Fri 6:45A-9:00A 3.5 1 3.5 Fri 7:00A-12:00P 5 1 5 Fri 8:45A-12:00P 3.5 1 3.5 11:30A-5:00P 5.5 2 11 11:30A-7:30P 8 8 64.0 4:30-7:30P 3 1.5 4.5 67.5 383.0 35 102.5 Head Lifeguard (weekend)Lifeguard (weekend)Pool Attendant (weekend)Front Desk (weekend)Concessions (weekend) Days Shift Time Staff Days Shift Time Staff Days Shift Time Staff Days Shift Time Staff Days Sat 8:30A-12:00P 3.5 1 3.5 Sat 9:30A-12:00P 2.5 3 7.5 Sat 11:45A-6:15P 6.5 1 6.5 Sat 8:30A-12:00P 3.5 1 3.5 Sat 11:30A-6:30P 7 1 7 11:45A-6:30P 6.75 6 40.5 0 11:30A-6:30P 7 2 14 Sun 9:30A-6:30P 9 1 9 Sun 10:00A-12:00P 2 30 60.0 Sun 11:45A-6:15P 6.5 1 6.5 Sun 11:30A-6:30P 7 2 14 Sun 11:30A-6:30P 7 6 42.0 19.5 150.0 13 31.5 Ballard*King Associates Part-Time Staff 1 Part-Time Rate Hours Weeks Total Front Desk (wk)$16.00 102.5 11 $18,040 Front Desk (wkend)$16.00 31.5 14 $7,056 Front Desk (mod)$16.00 20.0 3 $960 Concessions (wk)$16.00 77.5 11 $13,640 Concessions (wkend)$16.00 28.0 14 $6,272 Concessions (mod)$16.00 30.0 3 $1,440 Pool Attendant (wk)$15.50 35.0 11 $5,968 Pool Attendant (wkend)$15.50 13.0 14 $2,821 Lifeguard I (wk)$18.00 383.0 11 $75,834 Lifeguard I (wkend)$18.00 150.0 14 $37,800 Lifeguard I (mod)$18.00 140.0 3 $7,560 Head Lifeguard (wk)$20.00 67.5 11 $14,850 Head Lifeguard (wkend)$20.00 19.5 14 $5,460 Head Lifeguard (mod)$20.00 20.0 3 $1,200 Pool Superivosr $24.00 60.0 16 $23,040 Total $221,941 Aquatic Program $15,440 Rentals Staff $11,711 Total $249,092 Benefits 7.65%$19,055 Total $268,147 Ballard*King Associates Full-Time Staff 1 Full Time Staff Hourly Rate Hours Weeks Total Maintenance $35.00 20 14 $9,800 Custodial $30.00 21 14 $8,820 Salaries $18,620 Benefits Factored Into Wages 0.00%$0 Total Full-Time Staff $18,620 Ballard*King Associates Revenue Generation 1 Category Revenue Fees Membership $149,675 Daily $47,168 Group Rate $5,280 Total $202,123 62.3% Programs Aquatic $42,400 Total $42,400 13.1% Other Concessions $56,619 Rentals $23,100 Total $79,719 24.6% Grand Total $324,242 100.0% Ballard*King Associates Operational Expense 1 Category Expenses Personnel (new positions) Full-time 18,620 Part-time 268,147 Total 286,767$ 65.0% Commodities Office supplies (forms, ID, film)2,000 Chemicals 15,000 Maintenance/repair/materials 3,500 Janitor supplies 5,000 Recreation supplies 2,500 Uniforms 2,000 Printing/postage 1,000 Concessions 16,986 Other Misc. expenses 1,500 Fuel/Mileage 500 Total 49,986$ 11.3% Contractual Gas & Electric 20,000 Water/Sewar - Insurance (property & liability)- Communications (phone)2,000 Contract services 27,500 Rental equipment 5,000 Advertising 7,500 Training 5,000 Conference - Charge Backs (Trash, IT, Grounds, Snow, etc)- Dues/subscriptions 1,500 Bank charges 9,727 Deposit Service - Other 1,000 Total 79,227$ 18.0% Capital Replacement fund 25,000$ 5.7% Grand Total 440,980$ Ballard*King Associates 5 Year Comparison 1 5-Year Projection Year 1 Year 2 Year 3 Year 4 Year 5 Expenses $440,980 $454,209 $467,836 $491,227 $515,789 Revenue $324,242 $346,939 $364,286 $375,214 $382,719 ($116,738)($107,270)($103,550)($116,013)($133,070) Percentage 73.5%76.4%77.9%76.4%74.2% Capital $25,000 $50,000 $75,000 $100,000 $125,000 Ballard*King Associates