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2025-07-01 CC Agenda Packet - ITEM D10 - Aquatics Business PlanV .. f - Counsilman-Hunsaker 04 City of El Segundo June 2025 • Scope of Services Counsilman-Hunsaker will develop a comprehensive operational business plan for The Plunge and the City of El Segundo Aquatics Division as a whole, including: • Detailed analysis and recommendations to support the facility's sustainable operation, focusing on both revenue generation and cost management. • Specific information regarding projected revenue streams, expense forecasts, management structures, and staffing requirements. Page 2 of 37 0 Agenda 0 • Initial feedback from stakeholders • Market analysis Demographics Swim schools Market providers • 50% Business plan review Full system • Hilltop and ESAC • The Plunge Page 3 of 37 an Am dwa- Next Steps • • Expense review and analysis • Market analysis o Additional comparable programs o Fee structures • Lane allocation program • Program changes: • Moved programs to The Plunge • Additional availability at ESAC Awli Page 4 of 37Am ON Initial Feedback from Stakeholders Page 5 of 37 Initial Feedback from 0 Stakeholders • City of El Segundo • El Segundo Recreation and Parks Commission • El Segundo Recreation and Parks Commission Aquatics Subcommittee • Trojan Water Polo • Coastal Masters Water Polo • Alpha Aquatics • Tower 26 • Beach Cities Swimming • Southern California Aquatics • South Bay United Page 6 of 37 Focus Questions for Stakeholders • What do you see as the definitions of success for the City of El Segundo Aquatics program? • What would make the City of El Segundo Aquatics program successful? • What would make your user group successful, or to continue your success? Page 7 of 37 0 Feedback and Identified Priorities Establish cost recovery goals: • Target 90-100% for El Segundo Aquatic Center (ESAC) • Target -50% for The Plunge • Hilltop Pool's model to be determined Create a financial and operational business plan for all three facilities: ESAC, WWAM Plunge, Hilltop. Develop Key Performance Indicators (KPIs) for user group accountability, community impact, and programming success. Optimize Lane Allocation: create a lane allocation system to assess and optimize lane usage. • Implement fair success criteria for user group performance (e.g., community benefit, documentation, scholarship offerings). • Improve feedback loops: Establish clear communication between the city and user groups regarding expectations and performance. • Standardize contracts and time slot negotiations to ensure fairness and clarity. Page 8 of 37 Feedback and Identified Priorities OOptimize lane allocation: Improve scheduling to better balance user needs across competition, recreation, instruction, and therapy. OPrioritize seasonal usage: Consider seasonal allocation to support multi -sport youth participation and increase equitable access. OMove swim lessons to The Plunge to free up prime -time space at ESAC. OPrevent underutilization: Stop entire lane rentals by individual lap swimmers. Adjust practice times: • Earlier time slots (5-7 PM) needed for youth -focused programs (e.g., Trojan O Water Polo). • Additional practice times (e.g., Tuesday night for Masters clubs). Ensure accessibility improvements at The Plunge for seniors and adaptive programs. OBalance power and interest: Ensure recreational groups have equitable influence compared to competitive teams. OEvaluate pricing strategy: Compare rental rates with the regional market and assess elasticity. Page 9 of 37 Feedback and Identified Priorities Staffing challenges for swim lessons: • Difficulty recruiting instructors. • Lifeguards are currently filling in as instructors, which is suboptimal. Explore wellness and rehab programs: Inspired by La Mirada's success with physical therapy integration. Market for film and event rentals: Generate supplemental revenue via studio filming and concessions. Create complete aquatic programming: From swim lessons to elite competition, ensuring access for all ages and skill levels. Page 10 of 37 Market Analysis Page 11 of 37 Market Analysis El Segundo,, CA Market strong mare tor a recreational swimming pool. Its stable, affluent, and family -focused population, supported by a robust economy, indicates high demand potential. There are several opportunities to decrease subsidies by increasing fees. • staaie & Attluent Population: Strong financial capacity. • Family -Oriented: Significant youth presence drives demand. • Robust Economy: Ensures market stability and consumer confidence. • Low cost provider - by a significant margin Page 12 of 37 W 0 Population &Households El Segundo's population offers a consistent user base with slight projected growth, enhancing facility viability. Population & Household Growth (2010 - 2028) 49 Population Households 20000 15000 10000 5000 0 2010 Census 2020 Census 2023 Estimates 2028 Projections Page 13 of 37 Key Figures (Est. 2023): • Total Population:17,165 (1.6% growth by 2028) • Total Households: 7,223 (1.2% growth by 2028) • Population Density: 3,143.64 residents/sq mi Impact on Pool Use: • Stable population provides a steady user foundation. • Concentrated density improves. local accessibility. qW Age Distribution El Segundo's age profile, particularly its youth segment, is highly favorable for recreational swimming. Key Age Groups (Est. 2023): • Median Age: 42.5 years • Total Under 20 Years: 3,463 (approx. 20% of population) Impact on Pool Use: • Youth (0-19): Primary drivers for swim lessons, recreational use, and family activities. • Adults: Potential for fitness, lap swimming, and water programs. ropuiaxion Dy Age croup kzuzi) 0 Population 3000 2500 2000 1500 1000 500 0 1111111111Moti� oti� o�� o- op o� o- o� o� q hew �� Page 14 of 37 Income Levels 0 High income levels in El Segundo signify strong financial capacity for residents to utilize and invest in recreational amenities. $150.00 34.5% Household Income Distribution (2023) $100,000 - $124,999 10.8% $20,000 - $39,999 ),000 - $59,000 Key Income Metrics (Est. 2023): 9% Median Household Income: $106,713 • Average Household Income: $156,170 • Per Capita Income: $65,765 $60,000 - $75,000 Impact on Pool Use: 9•10/0 • High Disposable Income: Supports spending on memberships and related services. • Affordability: Allows for diverse pricing models. $75,000 - $99,999 15.7% Page 15 of 37 10 Economic Considerations El Segundo's diverse and robust economy provides stability and high consumer confidence, supporting recreational spending. Economic Snapshot (Q3 2023) • Total Employees: 76,649 • Total Establishments: 3,046 • Top Industries by Employment: Transportation & Communications, Services, Manufacturing. Impact on Pool Use: • Job Stability: Encourages discretionary spending. • Daytime Population: Potential for employee - based programs. • Corporate Partnerships: Opportunities for wellness initiatives. Major Industries by Employment Share (Q3 2023) Agriculturat, Forestry, Fishing Construction' Finance, Insurance, & Real Estate - Manufacturing - Mining Public Administration ■ Retai I Trade Services Transportation & Communications Wholesale Trade . 0 5000 10000 15000 20000 25000 Page 16 of 37 C] General Climate • Warm, dry summers. • Mild, wet winters. • Abundant year-round sunshine. • f '1 Li Impact on Pool Use: • Extended Season: Maximizes operational periods for outdoor facilities. • High Demand: Favorable weather naturally boosts water -based recreation. Area Swim Schools Local area swim schools and membership/class rates. The City of El Segundo is: v • Considerably less than local private schools - 86% less or more • Within range of other municipal lessons Chart of providers Group lessons - Per -Lesson Fee PrivaUt Lesson Fee NoiCSi 30 minutes 30 minutes City of El Segundo $6.25 $25 Current pricing City of Hawthorne $3 30 Not Offered Hour long group lessons, prorated in the chart for comparison Los Angeles County Free - $2 50 Not Offered City of Torrance $13.50 $33 45 minute group Lessons City of Santa Monica $6 63 Not Offered City of Culver City No Swim Lessons in 2025 - Instructor shortage British Swim School $44 75 $112 25 Swim Phi - Manhattan Beach Not Offered $55 Private/Semi Private Lessons only Sunsational Swim School $51 $73 Private/Semi Private only - at home pool Hour Long group lessons - prorated InstaSwim Not Offered $59 Private lessons only - at home Page 18 of 37 Area Market Providers In a review of two close market competitors the City of El Segundo the City of El Segundo adult pass fees appear in line with other area providers. Chart of providers Membership/Pass Fees Per Pass/Lowest Lap Swim Program offerings: swim Program offerings: Program offerings: Adult Resident Cost lessons aqua aerobics swim team Single Pass: $5 City of El Segundo Punch Pass (30 punches): $113 $3.76 Yes Yes Yes Outsourced Annual Membership: $500 City of Hawthorn Single Pass: $5 punch Pass (35 punches): $85 $2.42 Yes Yes No Yes LA County Pools Single Pass: $4 Punch Pass (30 punches): $88 $2 93 Yes Yes Yes Yes City of Torrance Single Pass: $5 punch Pass (22 punches): $100 $4.54 Yes Yes No Yes City of Santa Monica Single Pass: $4.50 Punch Pass (20 punches): $68.25 $3.41 Yes Yes No Yes City of Culver City I Single Pass: $4 $4 Yes No - Inst. Yes Outsourced Page 19 of 37 M4 Market Fee Anal SIS El Segundo's fee structure is considerably less than area private swim schools. This is typical of municipal operations across the country. El Segundo's fee structure is higher than area municipal learn to swim programs. However, it appears that LA County is receiving significant donations to subsidize free swim lessons. City of El Segundo's daily swim fee structure is equivalent to other area facilities. City of El Segundo's punch pass fee structure is slightly more than other area facilities. iunicipal facilities, they are also significantly lower than private swim schools. This is a trend across the country. There is opportunity to increase to the $10 - $11 per lesson range. This would still be considerably lower than area private lessons. The City of El Segundo's swimming fee structure is equivalent to slightly higher than area municipal facilities. They are however less than recommended fees across the country. Adjustments will continue to be studied. Page 20 of 37 Business Plan I Page 21 of 37 Business Plan Concepts The potential business plans have been divided into three business plan concepts. Current • Current operations • Existing staffing and pricing • Minimal investment • Stable service levels • Limited growth Enhance • Targeted improvements • Moderate investment • Refined scheduling/pricing • Community -focused growth • Increased efficiency Page 22 of 37 Elevate • Strategic optimization • High cost recovery • Major program expansion • Regional positioning • Long-term sustainability LLI 96 •I:T:.I �r o'IJT: Current operations are represented utilizing the following: • Current fee schedules as of 2025 • Current expected attendance and revenue • Current expected expenditures and staff costs FI L�__j lInArdfir Current operations are represented utilizing the following: • Enhanced fee schedules to meet area rates • Current expected attendance • Enhanced revenue • Current expected expenditures and staff costs ",. r J, ___r V 4 :Ievaze Ibnerntir IA.. y`, v-f IF , Current operations are represented utilizing the following: • Optimized fee schedules to meet goals • Current expected attendance • Optimized revenue to meet goals • Current expected expenditures and staff costs Aquatics Program Summary System Summary Includes: • El Segundo Aquatic Center (ESAC) • Hilltop Pool • Plunge Pool (Urho Saari Swim Stadium) Cost Recovery • Net Revenue - cash after expenses subtracted • Increases for enhance • Addition of The Plunge • Decreases for elevate • Increased fees *Plunge not included in Current El Segundo Aquatics Current• Enhance Elevate Total Attendance 84,015 123,276 123,276 Expense $2,687,573 $4,099,611 $4,182,867 Budget Revenue Projections $1,425,317 $2,470,331 $3,015,125 Net Revenue $ (1,262,255.90) $ (1,629,280.27) $ (1,167,741.62) Cost Recovery 53% 60% 72% Page 26 of 37 AIr Revenue Projections Daily Admissions I Memberships Admissions / Memberships $384,735 70% $655,785 4% $684,571 Swim Team Revenue Swim Meet Rental $46,000 0% $46,000 0% $46,000 Alpha $159,912 70% $271,850 35% $367,798 Beach Cities $190,296 70% $323,503 35% $437,681 Coastal $15,288 70% $25,990 35% $35,162 ElSegundo $0 0% $0 0% $0 SBU $82,751 70% $140,677 35% $190,328 SCAQ $128,520 70% $218,484 35% $295,596 Tower 26 $74,502 70% $126,653 35% $171,355 Trojan WP $17,640 70% $29,988 35% $40,572 Wiseburn $0 0% $0 0% $0 Classes and Camps $150,940 89% $285,988 0% $285,988 Swim Lessons $173,308 98% $343,988 33% $458,650 Rentals $1,425 0% 0% $1,425 Total Revenue $1,425,317 73% _$1,425 $2,470,331 22% $3,015,125 Page 27 of 37 Admissions • Attendance does not increase in this model • Fee structures gradually increase Additional Information • Classes and Camps: Specialty contract instructor classes, lifeguard classes, swim camps. • Swim Lessons: All swim lesson program categories • Wiseburn and El Segundo do not pay rental fees Operating Costs Utilities 1 A nol Operating Expenses 13.1% Category Current Enhance Elevate Personnel $1,934,812 $2,946,516 $2,946,516 Operating Expenses $352,910 $577,721 $660,977 Utilities $399,850 $576,458 $576,458 Total $2,687,573 $4,100,694 $4,183,950 • The Plunge is not included in Current estimates inel This model does not assume expense increases between Enhance and Elevate at this time. • Enhance and Elevate show price increases and minimal program increases. Page 28 of 37 Akr Hilltop Pool and ESAC Business Plan Page 29 of 37 Hilltop Operating Revenues • Currently no fee for residents • Enhance and Elevate show a $3 fee for each Page 30 of 37 a Hilltop Operating Expenses Annual Operating Budget Current Enhance Elevate Personnel Senior Lifeguard $25,555 $25,555 $25,555 Lifeguard $21,120 $21,120 $21,120 Maintenance $3,000 $3,000 $3,000 Personnel Equipment Cost $294 $294 $294 Training_ $2,000 $2,000 $2.000 Total Labor $51,969 $51,969 $51,969 Operating Expenses Insurance $22,262 $22.262 $22,262 Repair and Maintenance $10,400 $10,400 $10,400 Credit Card Fees $181 $187 $192 Operating Supplies $6,240 $6,240 $6,240 Chemicals $3,486 $3,486 $3,486 Advertising $5,000 $5,000 $5,000 Direct Expenses $47,569 $47,575 $47,581 Utilities HVAC $4,118 $4,118 $4,118 Electricity $5,476 $5,476 $5,476 Pool Heating $17,429 $17,429 $17,429 Water B Sewer 51.021 S1,027 S1.027 Total Utilities $28,051 $28,051 $28,051 Total Operating Expenses $127.589 $127.595 $127.601 Capital Replacement Fund $20,700 $20,700 $20,700 Total Expense _ _ $148.289 $148,295 _ $148.301 Estimate Current as of 6/2512025 C MART Source. Counsilman-Hunsaker W4 Page 31 of 37 ESAC Operating Revenues CategoryRevenue Admissions / Memberships $377,500 $377,500 $377,500 Swim Meet Rental $46,000 $46,000 $46,000 Alpha $159,912 $271,850 $367,798 Beach Cities $190,296 $323,503 $437,681 Coastal $15,288 $25,990 $35,162 EI Se undo $0 $0 $0 SBU $82,751 $140,677 $190,328 SCAQ $128,520 $218,484 $295,596 Tower 26 $74,502 $126,653 $171,355 Trojan WP $17,640 $29,988 $40,572 Wiseburn $0 $0 $0 Classes and Cams $150,940 $189,960 $189,960 Swim Lessons $173,308 $226,410 $301,880 Rentals Total Revenue Cost Recovery $0 $1416,657 $0 $1,977,01.6 $0 $2,453,831 • Increase to user group rentals Current - 21 % of current cost/lane hour Enhance - 36% of current cost/lane hour o Elevate - 50% of current cost/lane hour • Increase to swim lessons o Enhance - 50% increase to swim lesson fees • Elevate - 100% increase to swim lesson fees Swim n Swim Lessons Level 0 Current Enhance Elevate $20.00 $30.00 $40.00 Swim Lessons Level 1 - 6 $50.00 $75.00 $100.00 Swim Lessons A Guards $50.00 $75.00 $100.00 Swim Lessons Fliers $100.00 $150.00 $200.00 Private Lessons $100.00 $150.00 $200.00 Semi Private Lessons $80.00 $120.00 $160.00 Page 32 of 37 ESAC Operating Expenses CART _ _ Annual Operating Budget Current Enhance Elevate Aquatics Manager $134,338 $134,338 $134,338 Aqua ties Supervisor Plunge Plunge Plunge . Increases to water aerobics participation Aquelics Coordinator $69,680 $89,88a $69,680 Full Time Benefits $81.607 $81,607 $81.607 o Water aerobics Rae Leader $142,458 $142,456 $142,456 Senior Lifeguard $206.997 $206,997 $206.997 Sr Wet Lifeguard $855,360 $855,360 $855,360 o Senior Rae Leader $157,036 $157,036 $157.036 Maintenance $21,600 $21,600 $21,600 a Proportional increases to program supplies Part -Time Program Staff $152,471 $164,127 $164,127 Personnel Equipment Cost $9,097 $9,097 $9,097 . Increase advertising drop in/membership Meetings and Travel $2,200 $2,200 $2,200 per Traininq _ $50,000 $50,000 $50,000 attendance Total Labor $1,882,843 $1,894,499 $1,894,499 Operating Expenses o Current - approx. $0.08 per attendee Insurance Not Included Not Included Not Included Repair and Maintenance $68,900 $68,900 $68,900 o Enhance - $0.50 per attendee Credit Card Fees Not Included Not Included Not Included Operating Supplies $41,340 $41.340 $41,340 o Elevate - $1.00 attendee Program Supplies $28,362 $21.600 $28,800 per Food and Beverage $0 $41,850 $55.800 Chemicals $160,499 $160,499 $160,499 Advertising $6,240 $39,000 $78.000 Direct Expenses $305,341 $373,189 5433,339 Utilities HVAC $18,986 $18,986 $18,986 Electricity $70,614 $70,614 $70.014 Pool Healing $231,001 $231.001 $231,001 Data/Communications $500 $500 $500 Water & Sewer $50,699 $50,909 $50,909 Total Utilities $371,800 $372,010 •$372,010 Total operating Expenses $2,559,983 $2.639.698 SZ.699.848 Capital Reptacement Fund 5137 F00 $137,600 $137.800 Total Expense 32,697.783 $2,777,498 $2,837.648 Estimate Current as of: =512023 Source: Counsiknan-Hunsaker dvki Page 33 of 37 The Plunge Business Plan Page 34 of 37 The Plunge Operating Revenues Daily A.Memberships Current Enhance Elevate Admissions / Memberships $0 $259,359 $288,145 Classes and Camps $0 $96,028 $96,028 Swim Lessons $0 $117,578 $156,770 Total Revenue $0 $472,964 $540,943 Page 35 of 37 • Increase attendance/membership fees o Enhance - $6.61 per cap o Elevate - $7.34 per cap • Increase to swim lessons • Enhance - 50% increase to swim lesson fees • Elevate - 100% increase to swim lesson fees The Plunge Operating Expenses CART Annual Operating Budget Current Enhance Elevate Aquatics Supervisor $0 $96840 $96840 Aquatics Coordinator $0 $69:680 $69:680 Full Time Benefits $0 $66,608 $66,608 Rec Leader $0 $88,266 $88.266 Senior Lifeguard $0 $128,255 $128,255 Lifeguard $0 $317.980 $317988 Senior Rec Leader $0 $97,300 $97:300 Maintenance $0 $21,900 $21,900 Part -Time Program Staff $0 $80,715 $80,715 Personnel Equipment Cost $0 $4,296 $4.296 Meetings and Travel $0 $2,200 $2,200 Training $0 $28 000 $26 000 Total Labor g0 $1,000,048 $1,000,046 Operating Expenses Insurance Not Included Not Included Not Included Repair and Maintenance $0 $45.800 $45,800 Credit Card Fees Not Included Not Included Not Included Operating Supplies $0 $27,480 $27,480 Program Supplies $0 $10,800 $14,400 Chemicals $0 $53,376 $53,376 Advertising $0 $19,500 $39,000 Direct Expenses $0 $156,956 $180,056 Utilities HVAC $0 $73,676 $73,676 Electricity $0 $42,149 $42,149 Pool Heating $0 $49,200 $49,200 Data/Communications $0 $500 $500 _ Water & Sewer $0 $10 673 $10 673 Total Utilities so $176,397 $176,397 Total Operating Expenses $0 $1.333.401 S1,356,501 Capital Replacement Fund so $91.600 591 600 Togl Ez ense $0 51.425.001 $1,448,101 Estimate Current as of: G 2512025 Source: Counsliman-Hunsaker • Aquatics Supervisor moves to the Plunge • Aquatics Coordinator added • Part Time Staff • One Senior Lifeguard • Three Lifeguards • One Senior Rec Leader • One Rec Leader • Advertising Page 36 of 37 • Enhance - 50% of attendance o Elevate - 100% of attendance I AL —" ". Next Steps: Summary • Continue analysis to achieve three approved operating models. • Review expenses and propose efficiency recommendations • Review program changes with the addition of The Plunge . Continue market analysis: • Research additional comparable programs • Research additional fee structures, including rentals, program fees, and daily fees • Present the updated lane allocation program Questions: • Are any changes needed to the current workplan? • Are any changes needed to definitions of success? • Is additional information needed that is not shown? r7 `4 Uv� 1 I` Page 37 of 37 r1 04