2025-10-07 CC Agenda Packet - ITEM D8 - Proposed Aquatics Business Plant-""
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City of El Segundo
Proposed Aquatics Business Plan
October 7, 2025
Director Aly Mancini
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• Plan Overview
• Relevant History
• Plan Goals
• Analysis & Data Collection
• Current Look
• Proposal Summary
• Implications
• Business Plan Proposal
• Allocation / Blocking
• Pricing
• Alternative Revenue Sources
• Operations
• Financial Forecast
• Next Steps / Continued work
Relevant History
• User Group Engagement
• May 6, 2025 - Trojan, Coastal Masters
• May 7, 2025 - Beach Cities Swimming, SCAQ, South Bay United
• May 8, 2025 - Tower 26, Alpha Aquatics
• City Meeting History
• 3/18/25 City Council Meeting- Request about user group metrics and use of ESAC
• 4/15/25 City Council Meeting- Presentation of User Group Success Criteria
• Council directs staff to a goal of 90% and 50% cost recovery for ESAC and the Plunge (Respectively)
• 7/1/25 -City Council Meeting- 50% Review of Aquatics Business Plan by Counsilman Hunsaker
• Council reiterates cost recovery goals
• Council direction to improve equity between water polo and swimming.
• Council direction to continue subsidy of swim lessons
• 9/15/25 - Plan presented to Aquatics Subcommittee
Plan Goals
Improve our cost recovery while supporting community programming and youth sports.
Specifically...
• ESAC: Deliver revenue; targeting 90% cost recovery
• Plunge: Focus on community programming with 40%+ cost recovery
• Increase equity across user group types - in pricing and lane allocation
• Price City aquatics programs and services in -line with market (keep lessons affordable)
• Develop an Aquatics Division profit & loss model to report and measure performance
• Identify and increase opportunities for revenue generation through rentals and events
Plan works to address these through a combination of changes across (1) pricing, (2)
allocations, and (3) cost management
Analysis and Data Collection
• Researched pricing for comparable facilities - across both user types and region
• Constructed a ground up historical P&L with detailed (and trackable) revenue and costs
• Developed forward -looking model for facility management
• Review of current and historical user group blocking and utilization
Result: Draft plan meets goals while also minimizing disruption for user groups
Current Look
Pricing:
• Water polo groups pay $9.80/lane hour (below market).
• Non -water polo groups pay $18.00/lane hour (at market).
Current Cost Recovery & Considerations:
• -74% overall cost recovery (ESAC at 88.5%).
• Cost recovery at ESAC 24/25 was higher due to fulltime
vacancies
• Due to Recent lifeguard pay increases in 2025 and
additional Plunge costs the overall cost recovery for
Aquatics will be lower
Allocation:
• Significant disproportion of "prime time" use (3-7pm).
• Club swimming has >20x the prime time allocation of club
water polo.
FY 2024-2025 - Actual
$K
ESAC
Plunge
Hilltop
Admin
Total
Revenue
$1,175
$0
$9
$0
$1,184
Expense
1327
19
55
200
1602
Net Income
($152)
($19)
($46)
($200)
($418)
Cost Recovery
88.5%
0.0%
16.7%
0.0%
73.9%
Lap Swim 3,456 70,009
High Schools 8,630 8,901
Youth Water Polo 557 14,311
Youth Swimming 12,058 16,712
Other 0 10,361
Total 26,364 124,609
Plan Overview - Proposal Summary
Use Plunge reopening to implement pricing and allocation changes aligned with goals.
Pricing StrategX; Apply modest price increases to support cost recovery where justified. Base price
differences on times of day (Prime Time and Non -Prime Time), not on sport (Swim and Water Polo).
• Set two pricing tiers: Prime Time $20 before 7pm ($2 p/h increase), Non -Prime Time $12 after 7pm ($2.20
p/h increase).
• Raise lap swimming and rec swimming fees by $142 for non-residents.
Allocation Adjustments: Reallocate lanes to balance swim/water polo equity and expand swim lesson access
• Shift 3-7pm lane swim and lessons to the Plunge to free ESAC instructional pool for youth Club swimming
• Split competition pool into North and South halves. Assign ESAC South to youth Club swim, ESAC North to
youth Club water polo.
Cost management, Lifeguards are top expense - limit redundancy and reduce coverage if/where feasible.
0 Consider closing pools during low -revenue windows (e.g., dual lap swim).
Plan Overview - Implications
Program Expansion & Allocation:
• Increase in swim lesson capacity, pending staffing.
• Expand lap swim and rec swim access at Plunge.
• Improve equitability for Youth Club Swim and Youth
Club Water Polo during Prime time (3pm-7pm).
Anticipated Financial Performance in FY26/27:
• Plunge operating at 62% cost recovery
• ESAC operating at 80% cost recovery
• Total cost recovery for Aquatics at 63%
Lessons
2,288
4,823
Open/Rec Swim
2,028
5,148
Lap Swim
70,009
77,441
High Schools
8,901
8,866
3,456
8,630
1,170
8,866
,youth Water Polo
14,311
19,370
557
7,670
eouth Swimming
16,712
23,582
12,058
12,038
Other
10,361
7,813
0
0
Total
124,609
147,043
26,364
34,541
FY 2026-2027
- Forecast
$K
ESAC
Plunge
Hilltop
Admin
Total
Revenue
$1,265
$670
$15
$0
$1,950
Expense
1 572
1 081
76
353
3 083
Net Income
($308)
($411)
($61)
($353)
($1,133)
Cost Recovery
80.4%
62.0%
19.4%
0.0%
63.2%
Proposal Details
Capacity Allocation - Current
Given limited availability, there has been significant
competition between user groups for the prime -time slots
weekdays from 3-7pm.
• Pool use by high school from 3-6pm (ESHS and Wiseburn)
• Swimming (Beach Cities & Alpha) utilized nearly all Prime -time
hours
• Water polo (SBU and Trojan) received Non -Prime hours
• The ESAC instructional pool has been used for lessons
I] e
i
FY2024-2025',
'
Lessons
2,288
1.8%
Open/Rec Swim
2,028
1.6%
Lap Swim
70,009
56.2%
High Schools
8,901
7.1%
Youth Water Polo
14,311
11.5%
Youth Swimming
16,712
13.4%
Other
10,361
8.3%
Total
124,609
100.0%
Prime Time
Allocation
IFY2024-2025.
%
Lessons
1,664
6.3%
Open/Rec Swim
0
0.0%
Lap Swim
3,456
13.1%
High Schools
8,630
32.7%
Youth Water Polo
557
2.1%
Youth Swimming
12,058
45.7%
Other
Q
QQ%
Total
26,364
100.0%
Capacity Allocation - Proposal
-Open ESAC instructional pool for Youth Club Swimming
-Split the 50m pool into North and South, North for Youth
Water Polo and South for Youth Club Swim
• Splitting the pool creates a clear mechanism to more fairly
appropriate scarce availability
• Consolidating lessons at the Plunge helps address capacity
constraints at ESAC
• Creates additional availability for youth sports at ESAC with the
opening of the instructional pool for Youth Club swim.
• Plunge can host after school swim lessons at the Plunge -
potentially tripling swim lesson capacity and revenue (subject
to staff availability)
• Explore "use it or lose it" policy with permit groups
Lessons
2,288
4,823
1.8% 3.3%
Open/Rec Swim
2,028
5,148
1.6% 3.5%
Lap Swim
70,009
77,441
56.2% 52.7%
High Schools
8,901
8,866
7.1% 6.0%
Youth Water Polo
14,311
19,370
11.5% 13.2%
Youth Swimming
16,712
23,582
13.4% 16.0%
Other
10,361
7,813
°/ 5.3%
Total
124,609
147,043
100.0% 100.0%
Prime Time Alloc FY24-2571WM7Y24-25 VF-
T - A
Lessons
1,664
3,744
6.3%
10.8%
Open/Rec Swim
0
1,053
0.0%
3.0%
Lap Swim
3,456
1,170
13.1%
3.4%
High Schools
8,630
8,866
32.7%
25.7%
Youth Water Polo
557
7,670
2.1%
22.2%
Youth Swimming
12,058
12,038
45.7%
34.9%
Other
Q
Q
.0%
0.0%
Total
26,364
34,541
100.0%
100.0%
Pricing - Market Rates
With the exception of water polo, El Segundo rental rates and drop -in costs are
near parity with the local market.
Facility Rental Costs (Source: Facilitron, direct correspondence
Torrance Aquatic Center
8.0
$22.50
50 meter all -deep pool
Redondo Union
15.0
$16.00
40m x 25y pool
Mira Costa High School
12.0
$15.63
25y x 40m pool
Manhattan Beach Begg Pool
5.0
$40.00
5 lanes x 25y; $220 for non-residents
Santa Monica Swim Center
20.0
$16.50
50m x 25y; $11 for youth; $22 for adult
El Camino College
14.0
TBD
35m x 25y
City of Hawthorne
9.0
$11.44
9 lanes x 25y pool
Woollett Aquatic Center (low
34.0
$5.76
2 x 50m pools (direct staffing costs only)
Woollett Aquatic Center (higl
34.0
$13.29
2 x 50m pools
Marina High School Huntingti
14.0
$17.36
35m x 25y pool
Los Alamitos High School
20.0
$15.44
50m x 25y pool
Westminster High School
16.0
$15.19
40m x 25y pool
Ocean View High School
20.0
$12.15
50m x 25y pool
Median Cost / Lane
$15.53
Mean Cost / Lane
$16.77
AC (Water Polo)
rES
10.0
$9.80
Half pool: 10 lanes x 25 yards
AC (Full Price)
10.0
$18.00
Half pool: 10 lanes x 25 yards
Lane Swim / Reservation Adult Rates (Source: CH and
Manhattan Beach Begg
$5.00
$7.00
Redondo Union
$4.00
$5.00
City of Hawthorne
$5.00
$5.00
Torrance City (Plunge)
$5.00
$5.00
Santa Monica City
$4.50
$9.00
Culver City
$4.00
$4.00
Median Cost / Pass
$4.75
$5.00
Mean Cost / Pass
$4.58
$5.83
City of El Segundo (Current)
$5.00
$7.00
Pricing - Swim Lessons
El Segundo's pricing for municipal swim lessons is at the
low end of the market.
A 20% price increase from $6.25 p/h to $7.50 p/h could
generate $85k of incremental revenue (+2.8% cost
recovery) but that is NOT in the proposed plan.
Group Swim Lessons (Source City information)
City of Manhattan Beach $13.50 $14.88
City of Redondo Beach
$13.75
$13.75
City of Hawthorne
$6.88
$6.88
City of Torrance
$13.60
$13.60
City of Santa Monica
$6.63
$13.12
Culver City
N/A
N/A
Median Cost / Class
$13.50
$13.60
Mean Cost / Class
$10.87
$12.44
City of El Segundo
$6.25
$11.25
Pricing - Proposed Changes
We are generally at market rates excluding water polo. To maximize revenue, we recommend the following
1 Bring all permit groups to the same rental rate of $20.00 ($2.00 increase over current rate)
2 Raise instructional pool rate from $12.00 to $14.00
3. Create low demand rate of $12.00 for less desirable times
4 Increase non-resident
drop -in rates by $1.00
Permit Groups -
Non-WP (/lane hour)
$18 00
$16-20
$20.00
+$2.00
+$109K
Permit Groups -
WP (/lane hour)
$9.80
$16-20
$20.00
+$10.20
+$177K
Permit Groups -
Instructional Pool
$12.00
N/A
$14.00
+$2.00
+$11K
Permit Groups -
After 7pm (/lane hour)
$18.00
$16-20
$12.00
-$6.00
-$99K
Swim Lessons -
Group (/30 min)
$6 25
$6-10
$6 25
$0
NA
Swim Lessons -
Private 00 min)
$25.00
$25-35
$25.00
$0
NA
Drop -In - Resident
$5 00
$4-5
$5 00
$0
NA
Drop -In - Non -Resident
$7.00
$5-9
$8.00
+$1.00
+$34K
*Analysis assumes annual 5% increase in rates beginning every calendar year
Alternative Revenue Sources
• The team continues to pursue ad -hoc event rentals - though they are infrequent
• Event rentals tend to bring in $1-2K more than existing programming
Event Date
Day
Lane Hours
Revenue
Rev / Lane Hr
Staffing Cost
Margin
SBU 5/18/2025
Sun
312.0
$3,605.00
$11.55
$
1,922.93
$1,682.07
JG Tryouts 3/15/2025
Sat
264.0
$3,549.00
$13.44
$
1,586.96
$1,962.04
BCS Meet 11/16/2025
Sat
312.0
$4,997.00
$16.02
$
2,332.14
$2,664.86
BCS Meet 11/17/2025
Sun
312.0
$4,997.00
$16.02
$
2,249.59
$2,747.41
Summer Ave (Old)
Weekend
234.0
$1,771.99
$7.57
$1,921.21
($149.22)
Summer Ave (New)
Weekend
234.0
$2,386.63
$10.20
$1,921.21
$465.42
Operations - Managing Staffing Q Costs
Aquatics costs are expected to double as the EXPENSE SUMMARY FY24/25 (A) % FY26/27 (E) %
Plunge reopens
Employees ($1,115,942) 69.6% ($2,210,897) 71.7%
• Employees drive 70% of costs - and
guards/instructors are 85% of that.
• Guards pay recently increased by 30% which
has helped with recruitment and retention but
impacts cost recovery
To reduce costs consider:
1) Closing Plunge on Sundays (lap swimming only)
2) Passing costs for lifeguards to user groups
during user group hours
3) Reduced staffing (or closing) during off-peak
times (1-3pm weekdays as example)
Supplies & Services
Public Works
Total Expenses
($119,986) 7.5% ($242,160) 7.9%
366 346 22.9% 630 189 20.4%
($1,602,274) 100.0% ($3,083,246) 100.0%
Staffing Headcount Summary
FY2024-2025
FY2025-2026
FY2026-2027
Total FT Staff
2.0
3.0
3.0
Total Part -Time Staff (FTE)
21.4
27.5
33.8
Total Staff (FTE)
23.4
30.5
36.8
Staffing Cost Summary
FY2024-2025
FY2025-2026
FY2026-2027
Total FT Staff
($161,547)
($289,782)
($289,782)
Total Part -Time Staff (FTE)
796 390
($1.315.387)
($1,591,153)
Total Staff (FTE)
($957,936)
($1,605,169)
($1,880,934)
Financial Forecast Summary
Plan puts us at 80% and 62% cost recovery for ESAC and Plunge, 63% cost recovery overall
Plunge cost recovery is tied directly to our ability to drive swim lesson revenue
Expense increase follows (1) 30% pay raise for part-time staff, (2) new part-time hires for plunge and (3) aquatics supervisor (open admin req)
OPERATING MODEL SUMMARY - EL SEGUNDO AQUATICS
FY 2024-2025 - Actual
FY 2026-2027 - Forecast**
Revenue*
ESAC
Plunge
Hilltop
Admin
Total
ESAC
Plunge
Hilltop
Admin
Total
Permit Groups***
$651
$0
$0
$0
$651
$881
$72
$0
$0
$953
Instructional Programming
$169
$0
$0
$0
$169
$84
$505
$0
$0
$589
Drop -In Programming
$322
$0
$9
$0
$331
$299
$81
$15
$0
$396
Other Revenue
32
$0
LO
$00
ja2
$00
12
$0
L
12
Total Revenue
$1,175
$0
$9
$0
$1,184
$1,265
$670
$15
$0
$1,950
Expense
ESAC
Plunge
Hilltop
Admin
Total
ESAC
Plunge
Hilltop
Admin
Total
Employee -Related
($857)
($17)
($41)
($200)
($1,116)
($1,068)
($732)
($58)
($353)
($2,211)
Supplies & Services
($115)
($2)
($3)
$0
($120)
($150)
($85)
($7)
$0
($242)
Public Works
355
$_0
11
$_0
366
355
264
11
$0
ts6m
Total Expense
($1,327)
($19)
($55)
($200)
($1,602)
($1,572)
($1,081)
($76)
($353)
($3,083)
Net Income
($152)
($19)
($46)
($200)
($418)
($308)
($411)
($61)
($353)
($1,133)
Cost Recovery
88.5%
0.0%
16.7%
0.0%
73.9%
80.4%
62.0%
19.4%
0.0%
63.2%
'Timing for hourly revenue in model is based on timing of services provided - not invoice date, **FY 2026-2027 forecast is based upon 2025-2026 budget with full year of plunge operations, **"High School use included in permit group revenue (-$150k/yr)
Next Steps
• Begin new fee and allocation structure concurrent with the opening of the Plunge.
• Financial reporting: update systems to support effective measurement and reporting going forward
• Update chart of accounts - add granularity to missing line items (primarily public works)
• Separation of Aquatics Division administrative costs from individual pool budgets
• Instructor comp: Explore compensation adjustment for swim instructors to support increased swim
lesson scheduling - lessons are valuable to the community and generate revenue, making staffing
imperative. This would necessitate an increase in swim lesson fees.
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