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2001-03-08 • 1 JOINT UTILIZATION COMMITTEE 2 3 MINUTES 4 5 March 8, 2001 6 7 8 Joint Utilization Committee Members Present: Jerry Lawrence, Chair and CISD Board 9 of Trustees Representative; Patsy DuPre, Vice -Chair and City Council Representative; 10 Steve Harold, CISD Board of Trustees Representative; Greg Standerfer, City Council 11 Representative; Wendi Carlucci, City Council Appointed Citizen; John Rollins, CISD 12 Appointed Citizen; and Jim Glover, Parks and Recreation Board Representative. 13 14 Committee Members Absent: None 15 16 Guests: Todd Thompson, CISD Director of Maintenance and Operations 17 18 Staff Members Present: Steve Polasek, Deputy Director of Community Services; Steve 19 Johnson, Assistant Superintendent for the CISD. 20 21 Agenda Item No. 1, Call to Order 22 23 Mr. Lawrence called the meeting to order at 6:05 p.m. 24 25 Agenda Item No. 2, Administrative Comments 26 27 The Community Services Administrative Secretary position has been filled by Ms. Linda 28 Carpenter. Ms. Carpenter has worked for the City for over ten years in Public Works, 29 City Manager's Office and most recently, in the Office of the City Secretary. 30 31 Agenda Item No. 3, Consider: Approval of the Minutes from the December 14, 2000 32 meeting 33 34 A motion was made to approve the minutes of December 14, 2000 meeting as presented. 35 Motion: DuPre 36 Second: Harold 37 Ayes: Carlucci, DuPre, Glover, Harold, Lawrence, and Rollins 38 Nays: None 39 Abstentions: None 40 Approved: 6 -0 41 42 Motion carried. 43 44 45 46 N: (Parks & Recreationl COMITEESUUCIMINUTESI01 _minutes1030801.doc Page 1 of 8 1 Agenda Item No. 4, Consider: Approval of the Minutes from the February 8, 2001 2 meeting 3 4 Due to technical difficulties with the tape recording of the meeting, some of the 5 responses given by committee members under Agenda Item No. 3, Discussion of the 6 Natatorium Director Qualifications, were not audible and comments were not included in 7 the minutes. Members were asked to contact Linda Carpenter with their recollection of 8 their comments for that item to be incorporated into the February 8 minutes, which will 9 be brought back to JUC at the next meeting. 10 11 The following corrections were also noted: 12 13 Page 2, Line 21, change "JUC member Wendi Carlucci asked..." to "A parent of 14 one of the CHS swim team members asked..." 15 Page 3, Line 25, change "Wendi Carlucci " to "Susan Ansley" 16 Page 5, Line 18, verify comments and amend minutes accordingly 17 Page 5, Line 24, change "Jim Glover" to "Greg Standerfer" 18 Page 5, Line 23 and 24, amend minutes to include Mr. Harold's comments 19 regarding variable versus fixed costs. 20 21 A motion was made to table consideration of the February 8, 2001 meeting minutes until 22 the next meeting. During the interim, members are to contact staff with their comments 23 regarding qualifications for a natatorium director. 24 Motion: Harold 25 Second: Glover 26 Ayes: Carlucci, DuPre, Glover, Harold, Lawrence, and Rollins 27 Nays: None 28 Abstentions: None 29 Approved: 6 -0 to Table until the next meeting 30 31 Motion carried. 32 33 Mr. Standerfer arrived at the meeting at 6:25 p.m. 34 35 Committee members recessed at 6:20 p.m. for a brief tour of Town Hall. The meeting 36 was reconvened at 6:42 p.m. 37 38 Agenda Item No. 6, Discussion: Natatorium Director Update 39 40 The school board met March 7 to discuss the natatorium director position. Mr. 41 Lawrence briefed the committee on the outcome of that meeting. 42 43 Copies of the school board's initial draft of the "Carroll Independent School District 44 Natatorium Operational Overview" was handed to the members. Mr. Lawrence called 45 attention to sections in the memorandum that noted the "costs and programs outlined in 46 this overview are for forecast only." The Overview is a working document with additions N: (Parks & RecreationlCOMITEESUUCIMINUTESI01 _minutes1030801.doc Page 2 of 8 1 and changes expected. It contains the system costs and revenue projections the committee 2 had requested. Pages 13 and 14 address the Aquatics Center director position and page 3 15, references the Assistant Aquatics Center Coordinator position. 4 5 Changes the School Board made to the Overview at their March 7 meeting were 6 presented. The natatorium director /coach position was modified to natatorium director. 7 The CHS swim coach will be the assistant aquatics coordinator and coach. Some of the 8 qualifications the Board is seeking in the director position are marketing, programming, 9 and people skills. Salary for the director was changed from approximately $65,000 to "to 10 be negotiated" with a range from $48,000 - $65,000. 11 12 The job announcement will be forwarded to all twenty -seven school service centers in the 13 state, which serves 1,200 school districts. It will be mailed directly to 15 -20 area school 14 districts. It will also appear on three or four national school district websites. The District 15 will contact the City's public information officer James Kunke to advertise on the City's 16 website. 17 18 The Committee reviewed the five bulleted qualifications list found on page 13 of the 19 Overview and noted that the skills proposed by the parents at a previous meeting were 20 incorporated into the list. The District will furnish Susan Ansley a copy. Modifications to 21 the list were made; the second bullet item was deleted and "marketing skills" were 22 included under "job responsibility." All references to the director position dealing with 23 clubs or outside programs were removed from the description on pages 13 -14 since the 24 position will not include the coach aspect, as it was originally proposed. 25 26 A timeline for hiring the director was shared. The school board would like to hire the 27 director no later than July 1 with the earliest date being in mid -May or June. 28 29 Completion of the natatorium is scheduled for October. It will serve both high schools, 30 and a swimming curriculum will be offered in all the CISD schools. 31 32 Information about the District's chain -of- command for the natatorium director was 33 explained. The director will report to Assistant Superintendent of Administrative Services 34 Steve Johnson. 35 36 The Joint Scheduling Committee will meet three times a year. 37 38 There were no additional questions or comments on this item. 39 40 Agenda Item No. 5, Consider: Joint Use Natatorium Agreement 41 42 The Natatorium Agreement was presented to JUC at their February 8, 2001 meeting and 43 suggestions were made to the "Maintenance and Operating Costs" and "Operations" 44 sections of the agreement. This item was brought forward again to allow JUC members 45 an opportunity to revisit the agreement, discuss any remaining viewpoints, and consider 46 approval thereof. N: (Parks & Recreationl COMITEESIJUCIMINUTESI01 _minutes1030801.doc Page 3 of 8 1 2 The draft, which is attached to the minutes, reflects the combined efforts by City, school 3 district staff, JUC and comments incorporated from various meetings. The proposed draft 4 interlocal agreement includes the following key items: 5 6 • Commitment of City funding in the amount of $1.25 million. 7 • Revenue generated by the natatorium. 8 • Operations and maintenance of the natatorium. 9 • Proposed minimum number of weekly operating hours. 10 • Priority use of the natatorium. 11 • Identification and implementation of educational and recreational 12 programming needs. 13 • Percentage of annual operating hours dedicated to community -based 14 programming. 15 • Initial term of the agreement and ability to review and revise. 16 17 The Committee reviewed the elements of Funding (Section II) in the proposed 18 Agreement and commented. 19 20 Page 2, Section II, "Funding" was discussed by members at length. Mr. Harold said he 21 thought the sentence, "The CISD agrees to make a good faith effort to seek grant funding 22 and donations with the intent of reducing and/or reimbursing a portion of the City's 23 contribution" related to the City's $250,000 contribution. Ms DuPre and Mr. Polasek 24 responded that sentence related to the entire $1.25 million. Mr. Lawrence said the 25 meeting minutes did not state a specific dollar amount, although that number could have 26 been discussed. 27 28 Discussion continued about funding incentives and the "good faith effort" clause. It was 29 recommended that a percentage of any grants or sponsorships the District received for the 30 natatorium, be paid back to SPDC as an incentive. Percentage splits of 50/50 and 75/25 31 were offered and reasoning for each presented. Mr. Glover suggested that the Natatorium 32 Agreement be presented to the CISD Board of Trustees and the City Council with a 33 request that they come up with a list of the items they would like both sides to consider 34 before it is finalized. 35 36 After discussion, Mr. Polasek said verbiage such as, "The CISD and the City will each 37 receive (blank) percentage of grant funding and donation received through the efforts of 38 the CISD" could be added to the Agreement. 39 40 Mr. Standerfer suggested finding out the fund amount SPDC anticipates reimbursement 41 for, should there be grant funding and other donations /sponsorships received. 42 43 Committee members expressed differing views about why the city participated in funding 44 the building of the natatorium. 45 N :\Parks & Recreationl COMITEESIIUCIMINUTESI01 _minutes1030801.doc Page 4 of 8 1 Other alternatives offered to the funding issue was: 1) a 50/50 percentage split up to the 2 amount of the City's participation, and 2) to tie the amount to years or to a dollar amount, 3 such as 50% for the initial 15 years of the agreement. 4 5 The committee followed their discussion about the actual dollar amount to be reimbursed 6 and how that figure would affect incentives to seek alternative funding, with a motion. 7 8 Mr. Standerfer made a motion stating, "With no knowledge as to what SPDC suggested 9 and with no knowledge as to what Council discussed at the time, but merely as a way to 10 try to move this item forward — I motion that the Committee agree to a 50/50 split of 11 grant funding and donations up to the first $600,000 worth of grants and funding, which 12 would reimburse the City up to $300,000 of its investment." 13 14 Ms. DuPre commented again about the $1.25 million City contribution towards the 15 construction of the natatorium facility and how she interpreted their intent was to recoup 16 half of that amount. She offered to present City Council with any dollar amount the 17 committee would like to suggest and then Council and the school board could work 18 toward a mutual solution. 19 20 Mr. Polasek read an excerpt of a motion from the November 1, 1999 SPDC meeting 21 minutes stating, "...The CISD, with the assistance of the Joint Use Committee, making 22 good faith efforts with pursuing other funding sources through grants, corporate 23 sponsorships and individual donations, etc., for each of the fiscal years that SPDC 24 participates, and that if funding should be secured by the CISD through these measures, 25 the CISD will reimburse to the SPDC, the contribution the SPDC has made in an amount 26 equal to the other funding received by CISD, but not greater than the total SPDC 27 contributions." 28 29 The earlier motion was amended to say, "50/50 split of the grants and funding, up to a 30 total reimbursement of $600,000, given the minutes of the meeting [noted above]." 31 32 Motion: Standerfer 33 Second: DuPre 34 35 Discussion followed about what was considered a reasonable amount since the 36 natatorium was a joint use facility. Members talked about how operational and 37 maintenance costs enter into the equation, the level of joint use participation projects 38 Southlake has in comparison to other cities joint use programs, and how each city's 39 method of participation varies. 40 41 Mr. Rollins shared his ideas about the fair amount; how the City's participation benefits 42 the community; that an incentive needs to be incorporated into the agreement; and about 43 the participation in funding annual operating costs, which he felt would be the central 44 issue. 45 N: \Parks & RecreationlCOMITEESI JUCIMINUTESIOI _minutes1030801.doc Page 5 of 8 1 Discussion followed. Mr. Polasek re -read the entire motion from the November 1, 1999 2 SPDC meeting minutes and emphasized that the "SPDC participation in the CISD 3 natatorium was contingent upon (1) CISD entering into a written interlocal agreement 4 with the City of Southlake for the joint use of the facility..." 5 6 Mr. Standerfer restated his earlier motion saying, "it's a reimbursement of 50 %, up to a 7 total reimbursement of $600,000, and again it gets the schools 50% of first dollars and it 8 caps the total the city gets back..." 9 10 Mr. Lawrence said that the committee was making a good faith effort by just discussing 11 this issue at this meeting. 12 13 The reimbursement amount will be decided upon at a joint Council and CISD meeting to 14 be arranged in the near future. 15 16 The Committee reviewed the elements in the "Operations" (Section III) and "Facility 17 Usage" sections of the proposed Agreement. It was noted that comments on these two 18 sections were addressed in the previous discussion. 19 20 During the review of Section V., "Scheduling," the make up of the Aquatics Commission 21 was discussed. The wording will be changed to say "an additional CISD staff member to 22 be appointed" instead of the Carroll High Head Swim Coach. 23 24 Ms. Carlucci voiced her concerns that parents and interested citizens would not have 25 representation on the Commission. Members discussed the concerns and agreed to leave 26 the makeup of the Commission as presented. 27 28 Section VI., "Maintenance and Operating Costs" section was reviewed. 29 30 Members revisited the prior suggestion to assist the school district with costs by offering 31 a credit on their water usage cost for the natatorium. After review by the city attorney and 32 public works director, this suggestion would not be feasible due to a number of legal 33 issues the subsidy could raise. Mr. Johnson said the school district is a different entity 34 than a standard commercial customer and asked to have the city attorney review the issue 35 again. The City will continue to explore other options to assist the District. 36 37 There was more discussion held about the percentage of participation by the City and the 38 District and comments made about the city showing a good faith effort by their $1.25 39 million participation. A school board representative said the natatorium would end up 40 costing approximately $7.5 million and that the $1.25 million City participation, some of 41 which may be rebated, equaled only 17% of costs. He pointed out that fifty percent of the 42 annual operating hours would be dedicated to the city. Ms. DuPre stated her position in 43 the issue and held that the City was acting as a middle -man to help the District facilitate 44 their objective to provide a facility for the community, that the community had voted for. N: (Parks & Recreationl COMITEESIIUCIMINUTESI01 _minutes1030801.doc Page 6 of 8 1 Mr. Lawrence responded by sharing his opinions about prior joint use projects, such as 2 the gymnasium, the stadium, and impact fees and said in his opinion the city was getting 3 a pool for free. Ms. DuPre and Mr. Lawrence agreed to disagree on this issue. 4 5 Mr. Harold suggested the provision pertaining to operating expenses be deleted since the 6 CISD would pay for it, and by deleting the language now, it might be possible to re- 7 negotiate the issue with a new council at a future time. Mr. Standerfer stated he did not 8 think it was a good idea to delete the provision and explained his viewpoint from a 9 contract construction position. 10 11 Members brought up the issue of marginal costs and not having the non - school programs 12 included and compared how those program would impact operation costs and revenues. 13 They talked about the usage of the words "City" and "CISD" to describe community 14 programs. Ai 10 j 15 16 Mr. Harold stated that it was1'a tremendous compromise by the City to state they would 17 not participate in the operating cost expenses. 18 19 A motion was made to approve the Interlocal Agreement for the Carroll Independent 20 School District Natatorium with the amendment approved in Section II. 21 Motion: Standerfer 22 Second: Carlucci 23 Ayes: DuPre, Glover, Lawrence, Rollins and Standerfer 24 Nays: Carlucci, and Harold 25 Abstentions: None 26 Approved: 5 -2 27 28 Mr. Standerfer will follow up with the City Secretary in selecting a meeting date for a 29 joint CISD and Council meeting. He left the meeting at this time. 30 31 Agenda Item No. 7, Discussion: Community Services Project Update 32 33 Information was provided in the JUC packets. There were no questions or comments 34 from the members. 35 36 Agenda Item No. 8, Discussion: City Project Update 37 38 A narrative of the City Projects Update was presented in the JUC packets. The update 39 included comprehensive information about various road projects. 40 41 Ms. Carlucci commented on a dangerous situation she observed at Peytonville in the 42 northbound lane at Peytonville Avenue and Southlake Boulevard. Cars are turning into 43 the traffic lane in the northbound direction at the intersection. 44 45 Ms. DuPre gave a brief update on the CIP presentation made to the School Board and 46 related the costs for each road segment. N.IParks & RecreationlCOMITEESIJUCIMINUTESI01 _minutes1030801.doc Page 7 of 8 1 2 A question was asked about Union Church Road shown on the Trail Master Plan included 3 in the packet. A light will be installed at the intersection of Union Church Road and 4 Davis Boulevard. 5 6 Agenda Item No. 9, Discussion: CISD Project Update 7 8 Ms. DuPre asked how the school district would determine whether there would be one or 9 two high schools? The school board will address the issue at their March or April 10 meeting when they vote on whether to hold a referendum or whether the ultimate 11 decision will be decided by the Board. The District is looking at a November deadline. 12 The school district will hold several public information meetings. 13 14 Agenda Item No. 10, Discussion: Future Joint Use Facilities, Projects and Goals 15 16 This item was not presented at this meeting. 17 18 19 The next JUC meeting will be held May 10. 20 21 22 Agenda Item No. 11, Adjournment 23 24 A motion was made for adjournment at 9:00 p.m. 25 Motion: Harold 26 Second: DuPre 27 Ayes: Carlucci, DuPre, Glover, Harold, Lawrence, and Rollins 28 Nays: None 29 Abstentions: None 30 Approved: 6 -0 31 32 33 34 Je Lawrence, Chair 35 36 37 Attest: 38 39 �. 40 S teve Pol.re , Deputy Director of Community Services 41 42 43 N: \Parks & Recreation \COMITEESUUC \MINUTES \01 minutes \030801.doc N: (Parks & Recreationl COMITEESIJUCIMINUTESI01 _minutes1030801.doc Page 8 of 8 Adat■ R Carroll Independent School District mur Southlake, TX 1 a 645111k ft L 66 • . r 1 1 AMIk Indoor 50 Meter Natatorium Operational Overview February 7, 2001 111:° CONTENTS This memorandum is to be used solely as a cost - planning tool for the Natatorium operations as described below. The costs and programs outlined in this overview are forecasts based upon: 1) cost analysis of other similar facilities, 2) calculation memos provided by utility department(s), 3) quantity surveys in relation to other facility programs and usage, and 4) program activities as outlined under "Description of Natatorium and Programs ". Please see due diligence for backup and documentation. Blocked Items Are Not Yet Completed — Not Included In This Draft Copy I. The Operations A. Description of Natatorium: Facility and Programs 2 B. Program Marketing 10 C. Competitors 11 D. Outside Sources of Information 11 E. Operating Equipment, Chemicals & Procedures 12 F. Personnel 12 G. Insurance 23 H. Due Diligence 24 I. Financial Data 24 II. Financial Data A. Sources of Revenue 25 B. Variable Costs 26 C. Revenue Verses Variable Costs by Program 26 D. Base Costs 27 E. Revenue Verses Total Costs Prior to Depreciation 28 F. Depreciation Costs 28 G. Revenue verses Total Costs (Includes Depreciation) 29 H. Operating Statement Proforma (12 months) 29 III. Assumptions Upon Which Forecasts Are Based A. Revenue Assumptions 29 B. Variable Costs Assumptions 32 C. Base Costs Assumptions 33 D. Risks to Assumptions 34 IV. Exhibits A -1 Forecasting Revenue Statement 36 A -2 Forecasting Variable Costs Statement 38 A -3 Forecasting Base Costs Statement 40 Program Statement The CISD Natatorium and its staff is used to support the Physical Education and Athletics Departments in its effort to provide comprehensive programming designed to complement the educational mission of CISD. These programs include basic aquatic instruction, professional education courses and intramurals. The Natatorium also supports aquatic programming needs of UIL Athletics, other academic units on campus, CISD's population and the general community on an "as available" basis. By providing an environment central to the total growth and development of students and other members of the community needs in the psycho- motor, affective, and cognitive learning domains are addressed. The Natatorium provides an environment where students and the community may engage in quality educational and leisure time experiences in a comprehensive range of participatory and /or passive activities for all persons regardless of age, color, sex, skill level, handicapping conditions, or sport/activity interest. Persons participating in aquatic courses and activities can satisfy goals such as improving fitness, learning new skills, meeting people, fostering leadership skills, becoming involved as a member of a group, working toward a common goal, working toward one's maximal physical and cognitive potential, social responsibility, active participation in a particular sport/activity or personal enjoyment of the aquatic environment. Governance The Natatorium operates under the auspices of The Department of Athletics and Physical Education, Mr. Robert Ledbetter, Director of Athletics, Carroll Independent School District. Types of Programs and Usage The programs outlined in this memorandum are for forecasting purposes only. Please see assumptions under "Assumptions upon which forecasts are based" for more detail on program revenue projections. The CISD Natatorium has the capacity to offer a wide variety of educational related swimming, diving and athletic events and classes throughout the year, including: Varsity Swim Team Boys and Girls freshman classes grades 9th through 12th who compete in UIL competition representing Carroll High School. Varsity Diving The diving program is an extension of Carroll High School Swim Team. Students grades 9 through 12 represent CHS in UIL competitions. 3 Rent to Club Swim Rent to swim teams affiliated with USA swimming from ages 6 to 18 of all swimming abilities. Led by professional coaches. Athletes train to compete in local, state and national competitions. Rent to Club Diving Rent to Diving teams affiliated with USA Diving from ages 6 to 18 of all Diving abilities. Led by professional coaches. Athletes train to compete in local, state and national competitions. Water Polo Water Polo is a competitive sport which can best be described as contact soccer in a pool, in which athletes use their arms, not their legs, to throw the ball through the opponent's goal. Each team has seven players in the pool at one time, including a goalie whose duties are the same as their soccer and hockey counterparts. They are the only players who may touch the bottom of the pool in defending the three -meter goal area. Goalies are also the only plays who may touch the ball with both hands. Athletes use the deep end of the pool. The sport is very popular in the east and west coast and is becoming increasingly popular in North Texas. Swim Lessons CISD plans to operate a comprehensive learn to swim/diving program for ages 2 to adults. There will be sessions offered at various times throughout the school year and summer months. Scuba Rental Area scuba instructors may rent the facility during non -peak hours to teach scuba certification classes. Instructors will provide all the equipment and will be responsible for all the marketing and collection of fees. Red Cross CISD will offer a variety of Red Cross Aquatic Courses including lifeguard training, water safety instructor courses, coaches safety training, CPR and first aid on an ongoing basis. Synchronized Swimming Synchronized swimming is a sport requiring overall body strength and agility, grace and beauty, split- second timing, musical interpretation, and dramatic flair. Routines are displayed in an artistically choreographed piece while in the water. The competitive rules and manner of judging of synchronized swimming are similar to its counterparts, figure skating and gymnastics. There are events hosted and recognized nationally and internationally. Party Rental 5 facility to other groups, agencies, entities, or the public, and specialized emergency training for City personnel. In regards to the aforementioned priorities, the City and the District recognize the need to balance the District and community use of the natatorium facility." Schedule The proposed Natatorium Event Schedule included in the due diligence is for forecasting purposes only. The programming schedule is a best estimate based upon professional expertise from Carroll ISD and Carroll Athletic Department. Emergency Action Plan The District Natatorium Emergency Management Plan will be developed to cope with the consequence of emergencies. It establishes procedures that are to be used daily in coping with emergencies. It provides a way to expand the system when an unusual emergency occurs that requires multi- coordination. It expands to create a framework for managing emergencies. It directs how coordination, communication and cooperation of emergency management occur. This Plan establishes the procedures that are followed by Natatorium Employees in managing emergencies. It creates an Emergency Management Team. Program Marketing Marketing techniques will include posting information on a Web Page, production of a Natatorium Handbook with pool schedules and information relative to the Natatorium, informational announcements in CISD's flyers, publications, and employee and parent informational handouts. Also, announcements in the City of Southlake Parks and Recreation mailers and newspaper ads may be utilized. Other marketing programs will be initiated prior to opening day. It is management's marketing goal to have the programs outlined in this memorandum up and functioning in the first month of operations. Sponsorships and advertisement opportunities may exist and will be researched and marketed for additional revenue sources. Competitors CISD will be competing with other established Swimming Facilities. These include: Facility Approx. Miles Grapevine- Colleyville ISD 4 miles Lewisville ISD 21 miles Hurst - Euless- Bedford ISD 15 miles Fort Worth ISD 28 miles Northlake College 18 miles UTA 22 miles 7 The Maintenance Personnel will be responsible for properly maintaining the pool chemistry. Reports will be filed daily with the Assistant Facility Coordinator. These reports will be forwarded to the Facility Coordinator accordingly. The Maintenance Personnel will be responsible for special set -ups, functions, etc. at the Swim Center. This will include installation, relocation, removal, replacement of chalkboards, bulletin boards, paper towel dispensers, toilet tissue holders, ceiling tile, pencil sharpeners, mini blinds, and other similar types and classes of items associated with the campus operation. Minor repairs on doors, door jams, door closures, door locks, lock sets, etc. The mounting of maps, clocks, pictures, flags, etc. will be included in this job description. The Maintenance Personnel will be responsible for minor repairs to ramps, timing systems, porches, and the general installation, removal, or repair of shelving and shelving units. Other approved minor carpentry work or repair as assigned by the Director of Maintenance will be included. Other duties included with the Maintenance Personnel will /can be the removal of minor sink drain stoppages, repair of leaking water faucet(s), removal of minor commode stoppages, the repair of flush valves, the replacement of light ballasts after proper training, the replacement of light bulbs, the checking of circuit breakers and electrical connections when power is out after proper training, other approved and directed electrical repairs, the checking of monitor thermostat settings, HVAC air flow, filters, timers, and other HVAC related items and equipment, as requested by Director of Maintenance or designee, keep staff personnel advised of where working, wear proper clothing, uniform, ID badge, etc., and handle other maintenance duties as assigned by the Director of Maintenance. Insurance, Property, Liability & Risks Property Insurance CISD currently carries Property Insurance and Boiler & Machinery Insurance with a $5,000 deductible at Replacement Cost. Liability Insurance CISD currently carries General Liability insurance with a limit of liability $1,000,000 per occurrence, unlimited aggregate, deductible is $1,000. Also, CISD is covered under a Professional Liability insurance policy with a limit of liability $1,000,000 per occurrence, $1,000,000 aggregate, and a $2,500 deductible. 9 FINANCIAL DATA Base Costs (excluding depreciation expense) Base costs are all costs associated with the Natatorium excluding the personnel variable costs described above under "Variable Expenses ". See "Fixed (Base) Costs Assumption" for further discussion on Base Expenses. Personnel In the start up stage of the Natatorium it is estimated that personnel, excluding instructors, lifeguards and cashiers, will include 5 full time positions and 1 part time position. The major single expense is personnel (estimated at $174,480). This includes funds for professional staff, maintenance, custodial and employee benefits for the following positions: Position Total Personnel Costs Director of Facility $ 55,000 Assistant Facility Coordinator 30,000 Custodial Services 50,000 Maintenance Services 25,000 Insurance, WorkComp & Other 14,480 Total Base Personnel Costs $174,480 Services Services include electricity, support, and other (telephone, insurance). Total service costs are estimated at $233,382 or 54.85% of estimated total operating costs (excluding depreciation). Supplies, Materials & Other Supplies include chemicals, office supplies and employee travel, professional and certification classes. Total Supplies and Materials is estimated to be $17,650. Fixed (Base) Costs Data Total Base costs are estimated to be $425,512 per year. Daily Costs are estimated to be $1,166 per day (365 days). Cost per hour is estimated at $77.72 per hour (15 hours /day). Cost per hour per lane, total of 21 lanes, is estimated at $3.70 per lane -hour. 11 Utility Costs Electrical Costs are extrapolated from the Demand load and usage of a 40,000 square foot natatorium hosting a 50 meter, 800,000 gallon pool located near Houston, Texas (FBISD). Tri- County electric fees and charges were applied to the electrical demand and usage. Water usage is forecasted based upon FBISD 800,000 gallon pool water usage. The usage was increased by a 1.1682 factor to factor in the additional 134,500 gallons held in CISD's 934,500 gallon pool. Costs were determined based upon the City of Southlake water rates as of November 2000. Water and Sewer Costs are calculated by applying the City of Southlake's rates as of November 2000 to the above factored water usage of FBISD. Gas Costs are calculated by extrapolating gas cost from FBISD using a 1.1682 factor to add in the additional gallons held in CISD's pool. CISD is currently waiting for additional gas cost from TXU gas. Telephone Costs are calculated using the Transportation Facility in CISD. Eight (8) phone lines are currently serving the Transportation facility. It is the opinion of management that this will be sufficient to meet the needs of the natatorium, including, data and fire alarm lines. Supplies and Service Costs Contracted Services and Maintenance All Natatorium and Pool equipment will carry a minimum of a one -year warranty. The Director of Maintenance will handle routine maintenance on all equipment in- house. CISD Management foresees little cost risks associated with equipment failure in the first year of operations Chemical Costs are based upon the estimate of Paddock Pools and the actual usage of FBISD. The chemicals estimated by Paddock Pools and the actual usage of FBISD had a variance of 10 %. CISD used the higher estimate of FBISD plus factored in the additional gallons of water of CISD over FBISD. Other supplies, such as, office supplies, is based upon historical costs of Grapevine ISD Acquatic center office operations. Travel, Certification and Career Development Costs Costs associated with special travel and certification classes, such as, the National Swimming Pool Foundation's Certified Pool Operator programs, have been included in the travel classification. Some other organizations providing classes and training: American Red Cross and Professional Pool Operators of America. 13 EXHIBITS A -1 Forecasting Revenue Statement A -2 Forecasting Variable Costs Statement A -3 Forecasting Base Costs Statement Note: Please see "Assumptions Upon Which Forecasts Are Based" in the text of this memorandum. 15 CARROLL ISD NATATORIUM EXHIBIT A -3 Forecasted Statement of Base Costs (Unaudited) For Management Use Only (12 Months) Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug YTD E ENDITURES CONTINUED Fixed Costs Payroll Salary Director 4,583 4,583 4,583 4,583 4,583 4,583 4,583 4,583 4,583 4,583 4,583 4,583 55,000 Asst Coordinator 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000 Maintenance 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2,083 2,083 25,000 Custodian 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,000 Custodian 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,000 Custodian - Saturday 833 833 833 833 833 833 833 833 833 833 833 833 10,000 Payroll Benefits Workmans Comp 13 13 13 13 13 13 13 13 13 13 13 13 160 Insurance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 Medicare 193 193 193 193 193 193 193 193 193 193 193 193 2,320 Total Payroll Costs 14,540 14,540 14,540 14,540 14,540 14,540 14,540 14,540 14,540 14,540 14,540 14,540 174,480 Professional & Contracted Services Utilities Electric 12,284 12,845 13,520 13,356 1 2,999 12,427 12,590 13,707 13,543 11,892 13,568 13,232 155,964 Water 4,829 1,553 1,528 6,939 1,875 1,794 1,346 1,661 1,777 1,619 3,735 428 29,084 Gas 1,156 1,156 2,133 1,456 1,685 1,034 1,304 1,514 1,279 867 1,361 179 15,124 Sewer 3,110 1,013 998 4,461 1,220 1,168 881 1,083 1,157 1,056 2,410 293 18,849 Telephone 450 450 450 450 450 450 450 450 450 450 450 450 5,400 Contracted Maint/Repair 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Insurance 547 547 547 547 547 547 547 547 547 547 547 547 6,562 Total Professional & Contracted Services 22,577 17,764 19,375 27,409 18,976 17,621 17,317 19,162 18,953 16,631 22,270 15,328 233,382 Supplies & Materials Chemicals 1,071 1,071 1,071 1,071 1,071 1,071 1,071 1,071 1,071 1,071 1,071 1,071 12,850 Other Supplies 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Travel 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Total Supplies, Materials & Other 1,471 1,471 1,471 1,471 1,471 1,471 1,471 1,471 1,471 1,471 1,471 1,471 17,650 Total Base Expenses Prior To Depreciation 38,587 33,775 35,386 43,420 34,987 33,632 33,328 35,172 34,964 32,641 38,281 31,339 425,512 Depreciation Expense 16,408 16,408 16,408 16,408 16,408 16,408 16,408 16,408 16,408 16,408 16,408 16,408 196,896 Total Base Expenses With Depreciation 54,995 50,183 51,794 59,828 51,395 50,040 49,736 51,580 51,372 49,049 54,689 47,747 622,408 35