Aquatic Centre Business Plan Incl Financial Projections

Moss Vale Swimming Pool Re-Development Business Plan & Projected Financial Performance
Prepared For
Wingecarribee Shire Council

By
Unified Community Sports & Leisure
Moss Vale Swimming Pool Re DevelopmentBusiness Plan
Table of Contents Executive Summary ............................................................................................................... 3 Background and Scope.......................................................................................................... 4 Methodology .......................................................................................................................... 4 Proposed Concept Plan ......................................................................................................... 5 Gymnasium Fitness Component .......................................................................................................6 Energy & Water Efficiency ...............................................................................................................7 Location of Council Swimming Pool Development ..............................................................................7 Management Options......................................................................................................................9 Indicative Programs...................................................................................................................... 11 Indicative Operating Hours................................................................................................... 12 Indicative Customer Fees..................................................................................................... 13 Five Year Business Plan ...................................................................................................... 14 Attachments Supporting Information ................................................................................. 17 About Unified Community Sports and Leisure ...................................................................... 24 Principals Unified Community Sports and Leisure............................................................................. 24
Commercial In Confidence
Executive Summary
Wingecarribee Shire Council (WSC) has resolved to re-develop the Moss Vale Swimming Pool, to include indoor heated pools and amenities. Unified Community Sports & Leisure (UCSL), a leisure management and consultancy company has reviewed the proposed concept and has prepared projected financial and service levels over five years. Based on UCSLs assessment and experience the redeveloped facility is projected to attract circa 80,000 visits and will require an operating subsidy in the vicinity of $500-550,000 per annum - a subsidy of $6.00 per customer visit. Based on Capital Borrowings of $8mill Council repayment commitment will be $920,000 per annum over 15 years. The redevelopment concept as reviewed, is an unsophisticated design and does not provide for key fitness and therapy markets which if included would significantly improve financial and service outcomes. The addition of a 300 m2 Gymnasium Fitness component at a capital cost of $600,000, after a 12-18 month ramp up, would provide additional attendances circa 70,000 per annum, additional income circa $600,000 per annum and a net contribution to facility overheads of circa $400,000. The addition of a Gymnasium Fitness component would reduce the subsidy required to circa $50,000 a subsidy circa $.20c.per visit. The decision to locate the redevelopment at Moss Vale location in preference to other locations within the council has been made primarily due to the lower capital investment required to redevelop the existing Moss Vale Swimming pool site. The location of the development at the Bowral Swimming Pool sites has also been examined by Council. Council should closely consider the provision of the services that will be provided by the redevelopment within the context of the overall capital cost to develop each site, the relative merits of both sites and Councils ongoing financial contribution required to provide services outcomes. A number of environmental opportunities, water harvesting, water treatment, pool depth and siting of the pool have been identified and could be incorporated into the project design stage to improve operational efficiency depending on budget parameters. Typically leisure facilities are either managed by the owner (i.e. Council employed staff) or outsourced to specialist management companies and the advantages and disadvantages are identified.
Background and Scope

Wingecarribee Shire Council (WSC) has resolved to re-develop the Moss Vale Swimming Pool, an outdoor aquatic complex, to include An indoor 25 metre 8 Lane training pool An indoor warm water leisure / multipurpose pool Multipurpose rooms and Associated plant, administration and amenity areas.
Council has engaged Unified Community Sports & Leisure (UCSL) to Review the Concept Plan and Discuss Indicative Programs Recommend Indicative Operating Hours Discuss Management Options and Develop A Five Year Business Plan
Methodology
UCSL has reviewed the proposed re-development configuration and concept and has developed the response by applying a Management Methodology. UCSL has assessed the prevailing market conditions from the view point of an agency that has engaged to provide management services and has accordingly developed indicative Income, Expense and Attendance projections. A financial and service model has been prepared that reflects industry trends and UCSLs experience managing similar facilities located in similar rural locations. In addition the demographic profile of the Wingecarribee Shire Council has been considered to establish current and future population and likely demand for the services to be provided from a redeveloped Moss Vale Swimming Pool. The business model projection includes a six month set up / ramp up stage and a five year financial forecast which provides indicative financial results and the likely cost to council to sustain the facility operation and services. Three indicative five year financial and attendance forecasts have been prepared 1. Base forecast 2. Best Case forecast and 3. Low Case forecast The results have also been benchmarked against similar facilities to test the assumptions and findings.
Proposed Concept Plan

UCSL has reviewed the proposed redevelopment concept which is designed to provide A 25 metre 8 lane training pool ranging in depth from 1.2 metres to 2.05 metres A warm water activity pool ranging in depth from .7 metres to 1.5 metres A leisure and water play pool ranging in depth from 0.3 metres Multipurpose rooms consisting of a 70m2 space and a 20m2 space Water treatment plant and machinery areas Amenity areas including separate male, female and family change areas and Reception, Customers Service, Social Administration and Control areas
Contemporary industry knowledge suggests, that to achieve financial viability and optimal service outcomes, aquatic facilities should offer areas that offer up to four different water types for clearly identifiable market segments and generous Gymnasium Fitness areas. The majority of aquatic facility market research indicates future complexes must equally cater for a number of distinct aquatic user markets being: Recreation and Leisure Market - usually made up of families, people coming with friends and groups for fun, relaxation, social activity and low level competition/participation. Competitive/Training/Fitness Market - usually made up of people predominantly attending facilities alone for structured fitness or competition activities. Education Market - usually made up of children and adults wishing to increase water safety and survival skills. Includes Learn to swim classes, school and club use and individuals improving their skills and techniques. They require hot water pools and water depths with some straight edges and easy water access etc. Health and Therapy Market - usually made up of children, adults and older adults wanting to relax or exercise in hot water. This market also includes specialist health condition groups such as arthritis, asthma suffers, etc. They require hot water pools and associated health relaxation areas, i.e. Spa/saunas, etc. Research throughout Australasia indicates that the recreation and leisure market will be the largest as it contains people of all ages, ability, types, interest and gender. The competitive/ training/fitness market is a more specialist market as it usually contains younger, fitter and more active people who have made time to train and compete. Previous research conducted into the Australasian recreation and leisure markets, indicates that in many cases 50% to 60% of facility users come from the recreation/leisure sector with 20% to 30% coming from the competitive/training/fitness markets. The health and therapy and education markets can range from 10% to 30% of the market subject to the age and health profile of the community in which the facility is located. The most successful aquatic centres attract all user markets and should be set up to allow people to participate in a range of activities at the one site. The further addition of gymnasium and fitness facilities, spas and saunas and social areas have been very successful at many aquatic facilities, as they add to the user experience and contribute to people being attracted to attend these facilities more often.
Gymnasium Fitness areas have the potential to contribute significant income streams to a centre and play an important part in assisting a centre to achieve financial viability. The proposed Moss Vale redevelopment configuration is an un-sophisticated design and will provide services to a narrow range of potential users and will preclude a number market segments. With due regard to the final budget, consideration should be given to adding gymnasium fitness and spa and sauna components that will provide additional services and will contribute significantly to the financial viability of the centre. There are numerous successful aquatic centres that have been designed on the assumption that the centre will provide Gymnasium Fitness facilities with Aquatics as an add on, as opposed to the traditional design approach of an Aquatic centre with minimal gymnasium areas. The depth of the main 25 metre training pool should also be modified to reduce the amount of water required to be treated to provide the service. At the shallow end the depth should be 1.2 metres and increased to 1.3 metres at the deepest point. This reduction in depth will reduce the amount of water to be treated by 20-30% which will assist to reduce ongoing overheads with no impact on the level of service provided from the pool. Rather then compromise services provided from this pool this depth will provide a more useable space for elderly members of the community in the form of gentle exercise / walking, better cater for the education market and assist to provide a safer activity area.
Gymnasium Fitness Component The amount of space provided for in the current Moss Vale Swimming Pool redevelopment does not provide an adequate amount of gymnasium fitness activity space and should be increased to circa 300 m2. Based on industry average of 3 members per square metre, an area of this size will provide for up to 900 fitness members and has the potential contribute in the vicinity of $500K per annum from 70,000 attendances following an 18 -24 month ramp up period. Without a significant gymnasium fitness component and the resulting income the Moss Vale Swimming Pool will be destined to operate with the need for council to provide a sizable annual, operational subsidy and the pressure will come to bare on centre management to contain costs. Health and Fitness participation is an activity which is able to be influenced by promotion and marketing and has the potential to provide increased centre awareness and appeal to a broad section of the community. As a result of the increased promotion and awareness, participation in both Aquatic and Health and Fitness gymnasium are greater if offered on a complimentary basis as opposed to stand alone offerings. The financial and utilisation improvement that results from the addition of the gymnasium health and fitness area is demonstrated in the section Five Year Business Plan
Energy & Water Efficiency Two significant environmental opportunities are available to the owners of Aquatic Centres at the design stage, which if incorporated can provide ongoing annual financial efficiencies circa $50K per annum. Significant energy savings can be achieved by locating the pool hall to maximise the benefits of a northerly aspect thereby reducing air treatment requirements from either gas or electricity fired heat devices. Rain water harvesting and water recycling if included in facility design can provide ongoing efficiencies. The use of potable water, (which is predicted to become more expensive in the future), can be significantly reduced through the incorporation of rain water harvesting capability along with backwash water treatment capacity. The pay back period for this environmental investment varies depending on the scope and can be estimated in conjunction with an energy and hydraulic engineer. Typical pay back periods range from five to seven years. Location of Council Swimming Pool Development During the research for this report, the relative merits of the Moss Vale Swimming Pool site have been examined against the context of the provision of a similar aquatic facility at the municipal demographic centrally located, Bowral Swimming Pool site and there are clear advantages and disadvantages associated with both sites. A key consideration to locate the development at Moss Vale site has been to incorporate existing infrastructure into the redevelopment concept thereby reducing the overall cost of the redevelopment. The existing Moss Vale 33 metre pool structure requires extensive modification to incorporate an 8 lane 25 metre pool which will be a major component of the facility. The positive aspects associated with the development of the Moss Vale site are considered to be Close proximity to the Civic Centre / Library Hub and the Moss Vale commercial precinct The opportunity to redevelop an existing council leisure facility that requires upgrade to maintain service relevance The economic multiplier impact of the investment in the immediate area and The opportunity to incorporate shared electricity co-generation efficiencies with the proposed redevelopment of the Council Civic Centre
Management Options The selection of the appropriate management approach is essential to ensure that service and financial outcomes are maximised. The management of local government Aquatic Centres are characterised by two main models and variants which are 1 Directly Managed by Council employed staff 2a Outsourced via Management Agreement to a specialist company for periods 3-5 years 2b Outsourced via Lease Agreements to a specialist company for periods 10-20 years in return for investment in to facility infrastructure The advantages and disadvantages are summarised below Direct Council Management
Advantages Council retains responsibility for delivery of service outcomes Disadvantages Council assumes all financial and operational risk
Adequate level of capitalisation to provide working capital
Facility management can be constrained by slow moving council processes which can impact on speed to react to new trends or opportunities
Facility cleaning, maintenance of plant and equipment is retained by council and is generally performed to a higher level than by outsourced providers
Specialised industry program and sales and marketing knowledge is not always available from within the council structure
Financial surpluses are retained and are able to be re-invested back into council
Local government Award rates are generally 2530% higher than leisure industry rates which adds a significant over head
Council required to provide all equipment to operate the facility
Outsourced Via Management or Lease Agreement

Advantages Council retains responsibility for delivery of service outcomes via a contractual arrangements with an experienced industry operator Disadvantages Financial leakage can occur if the centre generates high levels of income / profit beyond what was anticipated this can be negated by incorporating profit sharing arrangements that reflect councils owner ship of the facility
Financial and service risk is minimised through the transfer of some risk to the Contractor
The scope of service outcomes, unless accurately prescribed in the contractual arrangements can be compromised as contractors will focus on the higher income earning activities
Council is able to obtain specialised industry knowledge, contemporary sales and marketing expertise and operate with a structure that provides speed to react to opportunities
Facility cleaning, maintenance and repair of plant and equipment can be variable and become the source of contention
Centre overheads are reduced via the movement of centre staff to a leisure industry award
Council has less control and influence of the day to day activities and outcomes and is required to performance manage the contract
As part of the Management Offering, Contractors typically will provide activity equipment including IT, Fitness and Activity Equipment
Depending on the length of the agreement entered into, the outsourcing term can be too long for Council if the performance of the operator is variable or too short for a contractor to receive an adequate return on investment
Contractors are able to become investors into facility infrastructure in return for long term tenancy. This provides Council with a long term management partner.
Council is exposed to risk of Contractor failure through inadequate working capital or poor business performance at the contracted facility or other facilities under management.
An emerging hybrid approach is Direct Council Management which incorporates Council engaging the services of a specialised industry expert or company to provide ongoing advice regarding performance of the facility. Typically a quasi Board of Management is established, comprising relevant Council officers, community representatives and an industry expert and is charged with the responsibility of establishing strategy and policy to meet Council objectives and periodically review and guide performance. This approach is recommended in the event Council resolves to manage the facility via Direct Management.
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Indicative Programs The following table outlines the range of programs and activities and the percentage of users which is likely to be provided for from the various water spaces. The majority of customers are catered for from the Multi Purpose Leisure Pool which is the smaller body of water and uses a lower proportion of the overhead expenses. Typically the amount of water to be treated in this type of pool is 70% less than a 25 metre training pool.
Programs & Activities
User %
Pool Type
Swimming Training - General Fitness and Specific Training Squad Swimming - Swimming Club, Masters & Triathlon
20-25%
25 Metre Training Pool
Learn to Swim - Children & Adults School Swimming - Education & Recreational Aquatic Industry Training Activities
25-35%
Multipurpose Leisure Pool
Aqua Exercise & Fitness Classes Fitness and Exercise Class - Combination Water and Dry Rehabilitation Water Assisted Exercise & Therapy Physiotherapy and Assisted Exercise Activities
5-10%
Multipurpose Leisure Pool Spa & Sauna
Water Play & Leisure Activities Recreational Swimming - Childrens Birthday Parties & Club Events Social and Meeting Activities
50-60%
Multipurpose Leisure Pool
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Indicative Operating Hours

The financial modelling has been based on the following Hours of Operation which are characterised by Seven days per week operation Off Peak and Peak Hours of operation to reflect seasonal demand and During times of excessive heat conditions the centre should remain open until 7PM on weekends
Opening Hours May to September Monday - Friday Saturday Sunday & Public Holidays
Open
Close
Hours Staffed
Days
Total Per Week
6AM
8PM
14.5
72.5
9AM
4PM
7.5
15.0
88
October to April Monday - Friday Saturday Sunday & Public Holidays 6AM 8PM 14.5 5 72.5
9AM
4PM
7.5
15.0
88
Public Holiday Hours should reflect Saturday Sunday Trading hours depending on the applicable season.
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Indicative Customer Fees

The suggested fee structure and resulting fees for customers to use the centre have been based on similar centres in NSW and reflects ability and propensity to pay for similar services.
Moss Vale Swimming Pool Proposed User Fees
Pool Fees
Adult Swim Child Swim Concession Spectator Family Adult 20 Visits Concession 20 Visits Monthly Pass - Adult Monthly Pass - Concession Monthly Pass - Family Inflatable Hire Aqua Class - Adult Aqua Class - Concession Aqua Class - Senior Aqua Class 10 Visit Aqua Class - Concession 10 Visit
Recreation
$4.90 $3.80 $3.80 $2.50 $15.00 $88.00 $69.00 $36.00 $30.00 $78.00 $58.00 $11.00 $9.20 $7.50 $88.00 $78.00
Birthday Parties Per Person Food 2 Birthday Parties Per Person Food 3
$16.00 $18.00
Schools
School Swim - Education Department School Stadium / Pool Entry School Aqua Class School Lesson - 1 - Ratio 1:12 School Lesson - 2 - Ratio 1:10 School Lesson - 3 - Ratio 1:8 School Lesson - 4 - Ratio 1:7 School Lesson - 5 - Ratio 1:6 School Lesson - 6 - Ratio 1:5
$1.95 $2.90 $5.20 $5.00 $5.70 $6.30 $7.00 $8.00 $9.00
Health Club
Adult FN Debit Adult FN Debit - Contract Concession FN Debit
$35.00 $30.00 $27.00 $25.00 $75.00 $27.00 $27.00 $265.00 $195.00 $499.00 $365.00 $910.00 $650.00
Swim Club
Swim Club Casual - Concession Swim Club Casual - Adult Swim Club Monthly - Concession Swim Club Monthly - Adult Swim Club Monthly - Family Squad 20 Visit - Concession
$2.80 $2.80 $30.00 $36.00 $78.00 $56.00
Concession FN Debit - Contract Family FN Debit Swim Parent FN Debit Corporate FN Debit Adult 3 month Concession 3 month Adult 6 month Concession 6 month
Learn To Swim
Swim Lesson Private Lesson Swim Workshops
$13.00 $48.00 $9.00
Adult 12 month Concession 12 month
A concession structure based on means tested concession entitlements as determined by various agencies is suggested to ensure that low income members of the community are not precluded. Accordingly as a minimum concession usage should be provided to holders of the following Health Care Card Centre Link Pension Concession Card Carer Card Pension Concession Card Veteran Affairs Gold Card All Conditions and
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University Student Full Time
Five Year Business Plan

The Business model has been prepared to project the financial implications and attendances likely to be experienced as a result of the redevelopment. A key measure of performance i.e. Subsidy per Visit has also been calculated to provide a measure to compare various scenarios and assist council to assess the relative merits. Over the first five years customer attendances and the operational financial implications for council are as follows.
Moss Vale Swimming Pool

Financial Projection & Key Indicator - Summary
Year 1 Projection Year 2 Projection Year 3 Projection Year 4 Projection Year 5 Projection
Pre Open
Base Case
-$48,987 Surplus / Deficit Attendances Surplus / Subsidy Per Visit -$536,633 78,251 -$6.86 -$539,049 82,563 -$6.53 -$545,474 87,523 -$6.23 -$551,440 93,226 -$5.92 -$557,060 99,785 -$5.58
Best Case
Low Case
The redeveloped facility will require financial support in the vicinity of $550,000 per annum to maintain the service. Non operational costs in the form of capital loan repayments will add an additional $920,000 ($8 mill plus interest over 15 years) per annum to total financial contribution required to establish and operate the facility. For the purposes of financial and service modelling the impact of the addition of a dedicated Gymnasium & Fitness component to the redevelopment has been calculated to demonstrate the outcomes in terms of cost to council and services to the community.
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The capital cost of this addition would be in the vicinity of $600,000 however should be assessed against the context of the ongoing operational subsidy. With the addition of the Gym & Fitness component income and attendances increase significantly which has the potential to provide a net surplus per visit as a contribution to the centre overheads, in the vicinity of $5.00 per visit.
Gym & Fitness Component - 300 m2

Year 1 Gym Income Equipment Lease & Repairs Additional Staff Additional Promotion Net Contribution to Centre Overheads Number Members Attendances Surplus /Subsidy Per Visit $322,735 -$50,000 -$55,000 -$10,000 $217,735 569 43,825 $4.97 Year 2 $527,956 -$50,000 -$63,250 -$10,000 $414,706 699 76,683 $5.41 Year 3 $624,026 -$60,000 -$72,738 -$10,000 $491,288 771 87,263 $5.63 Year 4 $642,746 -$60,000 -$76,374 -$10,000 $506,372 771 87,263 $5.80 Year 5 $662,029 -$60,000 -$80,193 -$10,000 $521,836 771 87,263 $5.98
When the net contribution is applied to the financial projections the operating subsidy reduced significantly, attendances increase and the net subsidy per visit is reduced.
required is
The resulting outcome is increased participation in fitness activities and less ongoing operational cost to council.
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Financial Projection & Key Indicator - Summary With Gym Component
Pre Open
Base Case
Surplus / Deficit With Gym Component Attendances Surplus / Subsidy Per Visit -$318,898 122,076 -$2.61 -$124,343 159,247 -$0.78 -$54,186 174,786 -$0.31 -$45,068 180,489 -$0.25 -$35,224 187,048 -$0.19
Best Case
Surplus / Deficit With Gym Component Attendances Surplus / Subsidy Per Visit -$277,128 132,606 -$2.09 -$84,758 170,639 -$0.50 -$9,630 187,170 -$0.05 $5,290 194,014 $0.03 $21,918 201,885 $0.11
Low Case
Surplus / Deficit With Gym Component Attendances Surplus / Subsidy Per Visit -$352,448 111,546 -$3.16 -$169,724 147,854 -$1.15 -$105,883 162,402 -$0.65 -$104,186 166,964 -$0.62 -$103,070 172,211 -$0.60
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Attachments Supporting Information

Financial Projection & Key Indicator - Summary
Pre Open
Base Case
Income $48,987 -$48,987 Expenses Surplus / Deficit Attendances Surplus / Subsidy Per Visit Surplus / Deficit With Gym Component Attendances Surplus / Subsidy Per Visit $402,036 $938,669 -$536,633 78,251 -$6.86 -$318,898 122,076 -$2.61 $455,751 $994,800 -$539,049 82,563 -$6.53 -$124,343 159,247 -$0.78 $510,880 $1,056,354 -$545,474 87,523 -$6.23 -$54,186 174,786 -$0.31 $575,296 $1,126,736 -$551,440 93,226 -$5.92 -$45,068 180,489 -$0.25 $650,678 $1,207,738 -$557,060 99,785 -$5.58 -$35,224 187,048 -$0.19
Best Case
Income $48,987 -$48,987 Expenses Surplus / Deficit Attendances Surplus / Subsidy Per Visit Surplus / Deficit With Gym Component Attendances Surplus / Subsidy Per Visit $452,646 $947,509 -$494,863 88,781 -$5.57 -$277,128 132,606 -$2.09 $506,284 $1,005,748 -$499,464 93,956 -$5.32 -$84,758 170,639 -$0.50 $568,925 $1,069,843 -$500,919 99,907 -$5.01 -$9,630 187,170 -$0.05 $642,201 $1,143,283 -$501,082 106,751 -$4.69 $5,290 194,014 $0.03 $728,038 $1,227,956 -$499,918 114,622 -$4.36 $21,918 201,885 $0.11
Low Case
Income $48,987 -$48,987 Expenses Surplus / Deficit Attendances Surplus / Subsidy Per Visit Surplus / Deficit With Gym Component Attendances Surplus / Subsidy Per Visit $356,526 $926,709 -$570,183 67,721 -$8.42 -$352,448 111,546 -$3.16 $395,558 $979,988 -$584,430 71,171 -$8.21 -$169,724 147,854 -$1.15 $440,932 $1,038,103 -$597,171 75,138 -$7.95 -$105,883 162,402 -$0.65 $493,791 $1,104,349 -$610,558 79,701 -$7.66 -$104,186 166,964 -$0.62 $555,477 $1,180,383 -$624,906 84,948 -$7.36 -$103,070 172,211 -$0.60
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Year 1 Pre Open Projection
Year 2 Projection
Year 3 Projection
Year 4 Projection
Year 5 Projection
Gym & Fitness Component - 300 m2

Gym Income Equipment Lease & Repairs Additional Staff Additional Promotion Net Contribution to Centre Overheads Number Members Attendances Surplus /Subsidy Per Visit $322,735 -$50,000 -$55,000 -$10,000 $217,735 569 43,825 $4.97 $527,956 -$50,000 -$63,250 -$10,000 $414,706 699 76,683 $5.41 $624,026 -$60,000 -$72,738 -$10,000 $491,288 771 87,263 $5.63 $642,746 -$60,000 -$76,374 -$10,000 $506,372 771 87,263 $5.80 $662,029 -$60,000 -$80,193 -$10,000 $521,836 771 87,263 $5.98
Learn To Swim Enrolments

Learn to Swim Enrolments T3 LTS Enrolments T4 LTS Enrolments T1 LTS Enrolments T2 Average 250 300 350 250 288 288 345 403 288 331 331 397 463 331 380 380 456 532 380 437 437 525 612 437 503
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Financial Projection - Base Case
Year 1 Pre Open $ Income Swimming - Casual & Squads Swimming Membership Aqua Classes Learn to Swim Term & Vacation Re-Sale Kiosk Resale Apparel Schools Swimming Total Expenditure Wages and Oncosts Staff Training Chemicals Maintenance & Servicing Consumables & Occupancy IT Support Program Expenses Bank Charges Insurance Water Security Gas Electricity Printing / Stationary Telephone Promotion Cleaning Kiosk Purchases Apparel Purchases Council Overhead On Costs Total Surplus / Deficit Capital Costs Operational & Capital Costs Subsidy Per Visit Key Drivers - Subsidy, Members & Enrolments Attendances Facility Aquatic Members Learn to Swim Enrolments T3 LTS Enrolments T4 LTS Enrolments T1 LTS Enrolments T2 Average Enrolment 78,251 68 250 300 350 250 288 82,563 70 288 345 403 288 331 87,523 72 331 397 463 331 380 93,226 75 380 456 532 380 437 99,785 77 437 525 612 437 503 Projection $ 110,300 31,670 26,557 151,550 41,892 16,757 23,310 402,036 $ 574,244 4,000 10,000 48,330 8,000 6,000 8,000 3,500 9,000 15,000 2,500 35,000 55,000 6,000 11,000 10,000 25,000 23,041 10,054 75,000 938,669 -536,633 -920,000 -1,456,633 -6.86 Year 2 Projection $ 115,815 32,621 27,353 193,905 43,987 17,595 24,476 455,751 $ 605,731 4,120 10,300 62,829 8,240 6,180 8,240 3,605 9,270 15,450 2,575 36,050 56,650 6,180 11,330 10,300 25,750 24,193 10,557 77,250 994,800 -539,049 -920,000 -1,459,049 -6.53 Year 3 Projection $ 121,606 33,599 28,174 237,141 46,186 18,474 25,699 510,880 $ 641,096 4,244 10,609 78,536 8,487 6,365 8,487 3,713 9,548 15,914 2,652 37,132 58,350 6,365 11,670 10,609 26,523 25,402 11,085 79,568 1,056,354 -545,474 -920,000 -1,465,474 -6.23 Year 4 Projection $ 127,686 34,607 29,019 289,106 48,495 19,398 26,984 575,296 $ 681,012 4,371 10,927 98,170 8,742 6,556 8,742 3,825 9,835 16,391 2,732 38,245 60,100 6,556 12,020 10,927 27,318 26,672 11,639 81,955 1,126,736 -551,440 -920,000 -1,471,440 -5.92 Year 5 Projection $ 134,070 35,645 29,890 351,451 50,920 20,368 28,333 650,678 $ 726,279 4,502 11,255 122,713 9,004 6,753 9,004 3,939 10,130 16,883 2,814 39,393 61,903 6,753 12,381 11,255 28,138 28,006 12,221 84,413 1,207,738 -557,060 -920,000 -1,477,060 -5.58
$ 33,987 8,000
3,000 4,000
48,987 -48,987
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Financial Projection - Best Case 20% Increase in Key Income Areas LTS & Casual Swimming
Year 1 Projection Income Swimming - Casual & Squads Swimming Membership Aqua Classes Learn to Swim Term & Vacation Re-Sale Kiosk Resale Apparel Schools Swimming Total Expenditure Wages and Oncosts Staff Training Chemicals Maintenance & Servicing Consumables & Occupancy IT Support Program Expenses Bank Charges Insurance Water Security Gas Electricity Printing / Stationary Telephone Promotion Cleaning Kiosk Purchases Apparel Purchases Council Overhead On Costs Total Surplus / Deficit Capital Costs Operational & Capital Costs Subsidy Per Visit Key Drivers - Subsidy, Members & Enrolments Attendances Facility Aquatic Members Learn to Swim Enrolments T3 LTS Enrolments T4 LTS Enrolments T1 LTS Enrolments T2 Average Enrolment 88,781 68 240 360 420 300 330 93,956 70 276 414 483 345 380 99,907 72 317 476 555 397 436 106,751 75 365 548 639 456 502 114,622 77 420 630 735 525 577 $ 132,360 31,670 26,557 180,100 41,892 16,757 23,310 452,646 $ 583,084 4,000 10,000 48,330 8,000 6,000 8,000 3,500 9,000 15,000 2,500 35,000 55,000 6,000 11,000 10,000 25,000 23,041 10,054 75,000 947,509 -494,863 -920,000 -1,414,863 -5.57 Year 2 Projection $ 138,978 32,621 27,353 221,275 43,987 17,595 24,476 506,284 $ 616,679 4,120 10,300 62,829 8,240 6,180 8,240 3,605 9,270 15,450 2,575 36,050 56,650 6,180 11,330 10,300 25,750 24,193 10,557 77,250 1,005,748 -499,464 -920,000 -1,419,464 -5.32 Year 3 Projection $ 145,927 33,599 28,174 270,865 46,186 18,474 25,699 568,925 $ 654,585 4,244 10,609 78,536 8,487 6,365 8,487 3,713 9,548 15,914 2,652 37,132 58,350 6,365 11,670 10,609 26,523 25,402 11,085 79,568 1,069,843 -500,919 -920,000 -1,420,919 -5.01 Year 4 Projection $ 153,223 34,607 29,019 330,474 48,495 19,398 26,984 642,201 $ 697,560 4,371 10,927 98,170 8,742 6,556 8,742 3,825 9,835 16,391 2,732 38,245 60,100 6,556 12,020 10,927 27,318 26,672 11,639 81,955 1,143,283 -501,082 -920,000 -1,421,082 -4.69 Year 5 Projection $ 160,884 35,645 29,890 401,997 50,920 20,368 28,333 728,038 $ 746,497 4,502 11,255 122,713 9,004 6,753 9,004 3,939 10,130 16,883 2,814 39,393 61,903 6,753 12,381 11,255 28,138 28,006 12,221 84,413 1,227,956 -499,918 -920,000 -1,419,918 -4.36
Pre Open $
$ 33,987 8,000
3,000 4,000
48,987 -48,987
20

Financial Projection - Low Case 20% Decrease in Key Income Areas LTS & Casual Swimming
Year 1 Projection Income Swimming - Casual & Squads Swimming Membership Aqua Classes Learn to Swim Term & Vacation Re-Sale Kiosk Resale Apparel Schools Swimming Total Expenditure Wages and Oncosts Staff Training Chemicals Maintenance & Servicing Consumables & Occupancy IT Support Program Expenses Bank Charges Insurance Water Security Gas Electricity Printing / Stationary Telephone Promotion Cleaning Kiosk Purchases Apparel Purchases Council Overhead On Costs Total Surplus / Deficit Capital Costs Operational & Capital Costs Subsidy Per Visit Key Drivers - Subsidy, Members & Enrolments Attendances Facility Aquatic Members Learn to Swim Enrolments T3 LTS Enrolments T4 LTS Enrolments T1 LTS Enrolments T2 Average Enrolment 67,721 68 200 240 280 200 230 71,171 70 230 276 322 230 265 75,138 72 265 317 370 265 304 79,701 75 304 365 426 304 350 84,948 77 350 420 490 350 402 $ 88,240 31,670 26,557 128,100 41,892 16,757 23,310 356,526 $ 562,284 4,000 10,000 48,330 8,000 6,000 8,000 3,500 9,000 15,000 2,500 35,000 55,000 6,000 11,000 10,000 25,000 23,041 10,054 75,000 926,709 -570,183 -920,000 -1,490,183 -8.42 Year 2 Projection $ 92,652 32,621 27,353 156,875 43,987 17,595 24,476 395,558 $ 590,919 4,120 10,300 62,829 8,240 6,180 8,240 3,605 9,270 15,450 2,575 36,050 56,650 6,180 11,330 10,300 25,750 24,193 10,557 77,250 979,988 -584,430 -920,000 -1,504,430 -8.21 Year 3 Projection $ 97,284 33,599 28,174 191,515 46,186 18,474 25,699 440,932 $ 622,845 4,244 10,609 78,536 8,487 6,365 8,487 3,713 9,548 15,914 2,652 37,132 58,350 6,365 11,670 10,609 26,523 25,402 11,085 79,568 1,038,103 -597,171 -920,000 -1,517,171 -7.95 Year 4 Projection $ 102,149 34,607 29,019 233,138 48,495 19,398 26,984 493,791 $ 658,625 4,371 10,927 98,170 8,742 6,556 8,742 3,825 9,835 16,391 2,732 38,245 60,100 6,556 12,020 10,927 27,318 26,672 11,639 81,955 1,104,349 -610,558 -920,000 -1,530,558 -7.66 Year 5 Projection $ 107,256 35,645 29,890 283,065 50,920 20,368 28,333 555,477 $ 698,924 4,502 11,255 122,713 9,004 6,753 9,004 3,939 10,130 16,883 2,814 39,393 61,903 6,753 12,381 11,255 28,138 28,006 12,221 84,413 1,180,383 -624,906 -920,000 -1,544,906 -7.36
Pre Open $
$ 33,987 8,000
3,000 4,000
48,987 -48,987
21
Additional Financial & Attendance Tables &
22
Additional Financial & Attendance Tables
23
About Unified Community Sports and Leisure

Unified Community Sports and Leisure (UCSL) presents an innovative community focused approach to Local Government Leisure Management with a mixture of expertise and entrepreneurial skills designed to deliver councils outcomes via a direct hands on approach from experienced senior staff. UCSL has contracts to manage six leisure facilities in Victoria and provides consultancy advice on a project basis. Being an operator of leisure facilities UCSL is well placed to provide advise regarding the operations of leisure facilities. Company directors have over 25 years of experience operating leisure facilities within the local government sector. Principals Unified Community Sports and Leisure Bernie Carroll - Director With a strong background in leisure business operations, Bernie has held senior roles with national leisure management companies over the past 15 years and has a track record of providing community focused leisure solutions within the public leisure sector. He brings a hands on style that resonates with both staff and customers and is experienced within public golf, aquatic, fitness and stadium settings. He has a track record of re-organising leisure service businesses, whilst balancing community needs to include high income producing outcomes and has become a specialist at incorporating health and fitness within a variety of settings that include traditional golf course, public leisure centres and high street locations. Roles have included Operations Director overseeing the growth of a leisure company, facility division management from $3mill to $18 mill turnover through the acquisition of nine leisure facility contracts comprising golf, fitness and aquatic facilities Assisting with the $12 mil re-development of a council / community leisure centre and overseeing customer growth to obtain 3,000 fitness and 2,400 learn to swim members National general manager for a chain of health clubs located within council leisure centres
Bernie has formal management qualifications that include a Masters Business Administration and a degree in leisure management has also participated in a number of leisure industry agencies. Gerard Murphy - Director Having managed facilities on behalf of several councils, Gerard is known as one of Australias longest serving independent facility managers. Gerard has always adopted a community focus in his management style and not been willing to employ unproven or junior managers as members of his key management team, believing that cheapest option is not always the best. Where other independents have gone by the wayside or compromised their beliefs by working with other bigger organisations Gerard chose to reduce his dependence on this field and move into other areas of business. He has recognized that the time has come to put forward our alternative in the management of council facilities.
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Ron Bongetti Advisor With 25 years experience in the Sports and Recreation Industry Ron has a proven history as a leader and manager at senior management level. Having worked for some high profile sporting organizations during this period Ron won the 1995 Victorian Sports Administrator of the Year. He moved onto the Board of VicSport, the body charged with the responsibility of offering advice to the Minister of Sport, Recreation and Youth Affairs. Ron has leisure management curriculum vitae full of experience in managing organisations that have enjoyed success following his involvement. Included in these are the following achievements Three National Basketball League titles Winning and staging FINA Swimming World Cups Winning the FINA Swimming World Championships bid Acting as an ambassador in Melbournes 2006 Commonwealth Games bid Creating the E. J. Whitten Foundation and staging the inaugural AFL E. J. Whitten Legends Match. Ron has been employed or engaged as a consultant by the following sporting organisations Swimming Victoria, Western Bulldogs Football Club, Brisbane Bullets, North Melbourne Giants, Swimming Australia, Boxing Australia, Softball Australia, Victorian Water Polo, Diamond Valley Basketball Association, Knox Basketball Association, AustSwim Victoria and Life Saving Victoria. UCSL Philosophy Unified Community Sport and Leisure believe is committed to Modelling the values of play, recreation, and sport as a means of well-being and wellbeing for self, others, and society within the community Partnership with Council to increase community participation in building activities that link the physical development of recreation and leisure to mental stimulation and the importance of balance and behaviours of living the "good" life within a community Provide management that encourages the community to frequent leisure facilities more often and Assisting people of all abilities and backgrounds to identify and pursue their fitness or sporting aspirations, regardless of cost.
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Aquatic Centre Business Plan Incl Financial Projections

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Aquatic Centre Business Plan Incl Financial Projections

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Moss Vale Swimming Pool Re-Development Business Plan & Projected Financial Performance

Wingecarribee Shire Council

Unified Community Sports & Leisure

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Background and Scope

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Proposed Concept Plan

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Adequate level of capitalisation to provide working capital

Council required to provide all equipment to operate the facility

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Outsourced Via Management or Lease Agreement

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Programs & Activities

25 Metre Training Pool

Multipurpose Leisure Pool

Multipurpose Leisure Pool Spa & Sauna

Multipurpose Leisure Pool

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Indicative Operating Hours

Total Per Week

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Indicative Customer Fees

$1.95 $2.90 $5.20 $5.00 $5.70 $6.30 $7.00 $8.00 $9.00

$2.80 $2.80 $30.00 $36.00 $78.00 $56.00

$13.00 $48.00 $9.00

Adult 12 month Concession 12 month

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

University Student Full Time

Five Year Business Plan

Moss Vale Swimming Pool

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Gym & Fitness Component - 300 m2

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Moss Vale Swimming Pool

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Attachments Supporting Information

Moss Vale Swimming Pool

Moss Vale Swimming Pool Re DevelopmentBusiness Plan

Wingecarribee Shire Council

Year 1 Pre Open Projection

Gym & Fitness Component - 300 m2