AGENDA #5b
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Homestead Park Aquatic/Community Center Conceptual Plan Committee Interim Report – Response to Questions from October 18, 2000 Council Work Session
DATE: January 22, 2001
At its October 18, 2000 work session with the Homestead Park Aquatic/Community Center Conceptual Plan Committee, the Council asked several questions regarding the project. This report responds to those questions.
In 1996, Chapel Hill voters approved $5 million in parks bonds. The bond information campaign indicated that the proceeds would be used for outdoor recreation facilities at Homestead Park, an indoor aquatic facility at Homestead Park, and the gymnasium at Hargraves Park. After construction of the gymnasium at Hargraves Park and outdoor recreation facilities at Homestead Park, approximately $1.2 million remains.
In 1997, voters approved a $3 million Orange County parks bond. Of that amount $1 million each has been designated for Homestead Park and the Southern Community Park, respectively. In 1998, the Board of County Commissioners approved the use of $145,000 for extension of utilities and construction of a restroom/concession building at Homestead Park, leaving $855,000 for the aquatic/community center facility.
In June 1998, the Council set aside $53,000 for planning of an indoor pool/community center at Homestead Park.
In the fall of 1998, the Council authorized the Manager to begin the conceptual plan and citizen involvement process for a proposed aquatic/community center facility at Homestead Park.
In the spring of 1999, the Manager selected an architect to serve as the consultant for the Homestead Park Aquatic/Community Center Conceptual Plan Project.
In September 1999, the Council appointed citizen representatives to the Homestead Park Aquatic/Community Center Conceptual Plan Committee.
Throughout the remainder of 1999 and the first 6 months of 2000 the Homestead Park Aquatic/Community Center Conceptual Plan Committee worked to develop an interim report for the Council on the project. A public forum on the project was held in February 2000.
On October 18, 2000, the Council held a work session with the Homestead Park Aquatic/Community Center Conceptual Plan Committee in which the committee’s interim report was presented. Council members asked several questions during the work session, requesting additional information. The attached Staff Report responds to the issue raised at the October 18, 2000 Council work session.
The Council has scheduled a public forum on the aquatic/community center project for January 29, 2001. Elected officials from Carrboro and Orange County have been invited to the forum.
The Homestead Park Aquatic/Community Center Conceptual Plan Committee will begin meeting again once the Council has provided further direction for the project.
Parks and Recreation Department
January 22, 2001
Questions/Issues Raised at the October 18, 2000 Council Work Session
1. Has the Parks and Recreation Master Plan Committee addressed aquatic needs in the community?
Response: The Parks and Recreation Master Plan Committee has been working with staff and consultants since the summer. A preliminary presentation of the Committee’s findings will be presented at a January 18, 2001 public forum. The Committee has determined a strong need for additional aquatic facilities for citizens. Only indoor multi-purpose space for programming and community meeting needs has placed higher on the Committee’s findings.
2. What is the size of the pool at the Sportsplex?
Response: The Sportsplex has three tanks:
· One 25 yard by 25 meter competitive pool; the temperature is typically kept at about 79 degrees; the depth is a consistent 6 feet
· One rectangular family pool with no play features; the temperature is typically kept at about 84 degrees; the depth ranges from 3-feet entry level to 4 feet
· One baby pool
3. Do you have a sense of whether the Sportsplex is too far to drive for a swim?
Response: The Sportsplex is 12 miles from the intersection of Columbia and Franklin Streets in downtown Chapel Hill. Traveling time varies from 20 to 40 minutes each way, depending on traffic and weather. A round trip would take approximately 40-80 minutes of travel time. The Homestead Park Aquatic/Community Center Conceptual Plan Committee heard repeatedly from citizens during both the town-wide public forum and a series of special interest group interviews that they perceive the Sportsplex in Hillsborough to be too far from town.
4. What about the issue of location? How committed are we to building two pools within 10 miles at Homestead Park as opposed to another one at the Community Center or building one at the Southern Community Park location?
Response: During the Parks and Recreation Master Plan Committee discussions the Committee, staff, and the consultant considered various sites for an aquatic facility. Primary advantages to the Homestead Park site are its proximity to major roads and the existing park infrastructure.
The Southern Community Park, located near the Southern Village development, is suitable for a community building. However, the Southern Community Park Conceptual Plan process is only just beginning.
The Community Center site on Estes Drive was also considered for expansion, but it is limited in size. The site is already highly programmed for its size, with the Community Center building, two trail heads, and outdoor basketball court, a heavily used playground, rose garden, community garden, bocce court, gymnasium, lap pool, and meeting room. Parking at the facility is already a problem during peak usage. In addition, much of the park site lies within the Resource Conservation District (RCD).
5. What is the long-term status of the Community Center on Estes Drive? At some point is it going to be so run down that we will want to flatten it and start over again? Can it be adapted to serve as a leisure facility?
Response: The Town has received the facility condition assessment on all Town facilities, including the Community Center. The estimated cost of needed maintenance is about $340,000. The costs of dealing with systems aging over the next 10 years will eventually raise the cost to about $588,000.
The consultants gave the building a Facilities Condition Index of about .16. For comparison purposes, .05 and below is good, .051 to .099 is fair, and .10 and above is poor. The average for all Town buildings is .07. Of major parks and recreation facilities (excluding park bathroom facilities) only the A.D. Clark Pool/Bath and Filter House received a higher (less favorable) Facilities Condition Index.
Some large items mentioned in the report are:
· Replace gym floor $56,000
· Replace tile on pool deck $45,000
· Replace sliding glass doors to pool $17,000
· Gut and replace mechanical room $53,000
· Duct cleaning throughout $15,000
· Replace dehumidifier $95,000
· Replace rooftop HVAC $40,000 (this is not all of the HVAC—other units will need to be replaced around 2010)
In addition, the Facility Condition Assessment report does not address several issues, including adding air conditioning of the gymnasium portion of the facility or adding amenities such as a wading pool, etc. to the patio area of the pool.
We believe that the structure can continue to serve the public for a number of years. As the structure ages we will likely face continued maintenance costs related to aging mechanical, heating, and chemical treatment systems.
If the Council chooses to build a new aquatic center, we believe that the best use of the current pool would be to maintain the existing tank as a lap pool, but to increase the temperature to provide a better environment for classes and slower lap swimmers.
We believe that the current deck could be converted to a summer use only outdoor leisure
pool suitable for children. Shallow water with zero-depth entry, fountains, and play structures could be provided that could serve both pre-school and early school age groups. This would be a major capital expense. We currently do not have cost estimates for such a conversion.
6. What is the financial relationship the Town has with the school system currently and what types of changes might occur in the financial relationship with the school for using the pool?
Response: The Mutual Cooperation Agreement, signed November 1977 by the Town and the Chapel Hill‑Carrboro School System, guides the joint use of areas and facilities. Neither party assesses charges for use of outdoor areas, fields, or courts. Fees for the use of Schools and Town facilities by the other party are reviewed annually and adjusted accordingly in relation to the utility, custodial, and incidental arrangement costs incurred. Generally the schools pay 50% of the established rental fee for any Town facility. Established rental fees for Town parks and recreation facilities are set to recover 100% of direct costs. The charges for the Town use of School facilities are also 50% of the established rental for that facility.
Currently, both high school swim teams rent space at the Community Center. Home swim meets are held at the Community Center, although Chapel Hill High School has recently begun scheduling meets at the Sportsplex. Over the past year the schools have requested additional time for their teams. The Town has not been able to provide all of the time requested, but accommodates them whenever it is possible to do so without disrupting Town programming.
The Schools’ summer camp programs have historically rented space at the A.D. Clark Pool at the Hargraves Park. Space there is at such a premium that in 2000 we reduced swim time for the school programs in order to accommodate our own programs and the programs of other community groups. Because the school system expects to enlarge its summer camp program in 2001, we anticipate that demands for pool time will continue and increase.
The Town and School System are parties to a 30-year lease, which expires in 2007. The lease affects space at Lincoln Center, and access to Phillips, Culbreth and Ephesus Schools. Another agreement covers the Scroggs Elementary School facility and extends until 2029. Also, the Town currently provides some support for the school resource officers and helps support the middle school afterschool programs at Culbreth and Phillips.
We are aware of several school systems in North Carolina and many in other parts of the country that have constructed their own pools. Each jurisdiction has unique guidelines for community use of these school-sited pools.
The Town could open conversations with the Chapel Hill-Carrboro School System regarding sharing in capital and/or operating costs of a new aquatic facility in exchange for priority use of the facilities.
7. Did you explore whether the UNC facility (the 50 meter pool) is available for team practice or whether swim meets could be held there to meet the school needs?
Response: The Natatorium can be rented; however the UNC scheduling staff has indicated that the facility is currently used 15-hours per day by university groups and community swim clubs who already lease space.
The fee for a 2-hour rental of the UNC Natatorium is $250, with an additional $250 fee to use the automatic timing system if needed. Other expenses may be added for swim meets. These include maintenance staff ($40 per hour) and security (UNC staff could not provide an hourly rate for security). Finally, the renter must provide his own lifeguards.
8. Is there pool time available at the Sportsplex?
Response: The Sportsplex competitive pool is used to capacity in the early mornings and afternoons. Like both the Community Center and the YMCA’s tanks, the Sportsplex has blocks of limited free time during the day when youth are in school and many adults are working.
9. What is the need for an additional gym, given our new one at Hargraves and the condition of the one at the Community Center?
Response: The Town operates three gymnasiums: Community Center, Lincoln, and the Northside Gym at the Hargraves Center. All gyms are used to capacity during evening hours October through February and the entire hours of operation during the summer. We offer very limited free playtime on weekends and some evenings during the remainder of the year. We are able to dedicate large time blocks for popular free play only during early fall and spring months.
During the last 18 months we have worked with a significant increase in groups wishing to rent the gyms. Many of these groups do not necessarily require a gymnasium; rather many of the groups are looking for large indoor multi-purpose spaces. Currently the gymnasiums are the only facilities the Town can offer these groups.
10. How would the staff needs for office space, the other recreational needs, the other meeting space needs of the Town be met if the core facility is not included?
Response:
Office Space: The majority of Park and Recreation Department staff are housed in the administrative building located at 200 Plant Road. The administrative offices would continue to be located at the Plant Road facility. The metal-walled structure was converted from a Public Works maintenance facility to a temporary Parks and Recreation Department office building in the mid-1970s. The building recently received a new roof. Because of previous water damage, all carpet will soon be removed from the building. However, staff must contend with other issues associated with a temporary structure, including insufficient heat in the winter and insufficient cooling in the summer. Office space is used to capacity, with part-time, permanent staff sharing office space. Work and meeting space for staff is inadequate and its character does not contribute to a positive work environment.
Programming Space: While the Department has offered more diverse cultural and educational programs over the last year, staff has been limited by lack of programming space. In addition, all new programs have negatively impacted drop-in use of the facilities. The Lincoln Center pottery studio lease with the school system will expire in 2007. School staff has told us that it is unlikely the school system will consider continuing to lease this space to the Town due to its own space limitations. While we do not have a commitment, we believe that as long as Lincoln Center exists in its current configuration, we will continue to have use of the Lincoln gymnasium. If the School System chooses to convert its administrative building to a school site we would expect to lose use of the gym.
The Parks and Recreation Department continually balances community meeting space needs with drop-in use and the Department’s own program needs. All indoor facilities are currently used to capacity. Requests from community groups desiring to lease space far exceed available resources.
11. What are the prices of the 25-meter pool without building, lockers, without anything else? (The figure the Wellness Center staff provided was $269,000 for tank, heating equipment & ramp at UNC fitness center.)
Response: Our consultant’s estimate for the tank, heating equipment and handicapped access is $700,000. This compares with the $269,000 for the Wellness Center in the following ways:
· The Wellness Center tank is 25m x 5 lanes. The proposed tank listed in the Homestead Park Conceptual Plan Committee’s Interim Report is a full sized regulation 25m x 25y, almost twice the surface area of the Wellness Center and has either a 9 or 11 lane configuration due to its regulation size.
· The Wellness Center has a constant depth of 4’. Four feet is too shallow for competitive use. This tank has a variable depth to 8’. The proposed Homestead Park tank has three times the volume of water with the requisite equipment to heat, circulate and sanitize the water.
· The Wellness Center has no diving boards. The proposed Homestead Park tank has two 1-meter diving boards.
12. In the Homestead Park Aquatic/Community Center Conceptual Plan Committee’s Interim Report, on the Budget section #3 at the top, it says 25m X 25 yards for $2.4 million. What does that include?
Response: This figure includes the tank, the finished building around the tank and all of the equipment necessary for heating, circulating and treating the water; for the spaceconditioning of this area (heating, cooling, venting and dehumidifying) and for the lighting of this area. It also includes the deck around the tank at a size to accommodate competitive swimming.
13. Do 25m x 25y pool cost estimates include lockers or anything else? If it is just a lap pool facility with the necessary space for locker rooms plus entry and reception, how much would that cost?
Response: The costs for the 25m x 25y pool do not include locker space or entry and reception space. The estimated cost of a stand alone 25 Meter x 25 Yard Pool, with entry, locker room space, and reception space is approximately $4,450,000. A detailed opinion of cost of this stand alone pool accompanies this report (Attachment A). This opinion of cost retains the programmatic specifications (appropriate pool deck space, storage space, etc.) defined by the committee.
14. What is the efficiency factor that is listed in the budget costs?
Response: The efficiency factor includes “non-program” areas. These non-program areas are composed of hallways and circulation, vertical duct chases, toilet rooms, the area of a building taken up by walls, stairs and other necessary building elements.
15. When the group was discussing the costs, were there economies if you built
the pool and building at the same time?
Response: Yes. By “building” we are assuming the community spaces are what is being referred to. Those spaces may be folded into the main building, saving space and site costs. In addition the costs for electrical services and basic mechanical systems will be less if the building is built with the pool. The extent of these cost efficiencies can only be determined when we have a specific design; however our estimate now would be in the order of 15% to 20%. There would also expect there to be savings, which we cannot now quantify by avoiding a second construction project with the costs of mobilizing twice.
16. What are the staffing costs for the facility?
Response: Staffing costs vary significantly depending on facilities components. We believe at a minimum that the facility will require one fulltime Center supervisor and one fulltime assistant. In addition, one desk attendant/recreation assistant must be on duty during all hours of operation. Any aquatic component would require significantly more staff. The Parks and Recreation Department currently operates with a minimum of two lifeguards on duty at all times. Town policies require a third lifeguard on duty when more than 40 individuals are using the pool facility at once. One additional lifeguard is required for every 20 additional users. We schedule as many as six lifeguards for events such as the 8th grade graduation program and summer day camp free swim time. Generally speaking, leisure use of any pool requires more lifeguards than lap/competitive swimming does.
Estimated costs are explained in detail in the Program Summary section of the Homestead Park Aquatics/Community Center at Homestead Park Interim Report from the October 18, 2000 Work Session with the Council. The “Opinion of Expenses” page from that report is attached (Attachment B).
17. When you got the figures on the cost recovery rate for indoor leisure pools, were you able to separate it out regionally to see whether in the southeast there are enough of these kinds of pools to know they are used year-round in the south?
Response: The recovery rates provided by the aquatic consultant reflect national figures. We are not aware of any indoor leisure pools currently in operation in North Carolina, although there are at least two leisure aquatic facilities currently in development in the state: Waynesville (population 9,700) is constructing a 64,000 square foot recreation center, with an 8-lane competition pool and a zero-depth entry leisure pool as the chief amenities. The project, initially planned in the mid-1990s, has a $5.9 million budget. Waynesville staff believes that the facility will attract users from a 3 county region and have projected the center will be self-sufficient within 5 years and that the chief revenue producers will be the fitness center and the leisure pool components.
Huntersville (population 17,520) has planned a 75,000 square foot (63,000 indoors) recreation center which will include a 50 meter pool, with a 10 meter diving tower/well, a warm-up pool, and a zero-depth entry family leisure tank in addition to a fitness center, gymnasium, and walking track. It is our understanding the $8.3 million projected cost has proven too low based on construction bids. The facility, as designed, is projected to cover 100% of expenditures by its fifth year of operation. The key projected revenue producers are user fees from the family leisure pool and use agreements for the lap pool with swim clubs, teams, and other user groups.
18. Has the leisure pool at the Sportsplex come close to achieving the revenue that you are anticipating?
Response: The Sportsplex staff have been unable to give us specific revenue information for each tank at the Sportsplex. However the leisure pool at the Sportsplex differs from the competitive tank only in temperature and depth. There are no play features and the tank does not have zero-depth entry.
19. What is the cost of Phase III of the YMCA project? What is the preliminary cost?
Response: Projected costs for the aquatic phase of the Chapel Hill-Carrboro YMCA expansion are very preliminary. We believe the aquatic expansion may not be built within the next 10 years. However, the YMCA’s consultant based projected costs in year 2000 dollars at $100,000 per lane for 6 lanes. The YMCA’s plan calls for an identical second tank immediately adjacent to the existing one. The YMCA’s consultant believes that the cost for the $600,000 project will increase $50,000 annually due to inflation of construction costs.
20. How much would we need to raise our prices to achieve the same cost recovery rates as those suggested in the Homestead Park Aquatic/Community Center Conceptual Plan Committee’s interim report?
Response: Town of Chapel Hill Parks and Recreation Department user fees are set annually by the Council in the Parks and Recreation User Policies document.
The consultant has presented one possible fee structure that would result in an increase in rates from current user fees, although actual rate increases would vary, depending on type of pass purchased. For example, an annual individual pass for residents would increase by 17%, from $170 to $200. However, annual resident family passes would rise by 94%, from $257 to $500. All single admission fees would rise significantly: from $2.50 to $4.50 for an adult resident and from $1.25 to $3.50 for a youth resident.
The proposed user fee rates provided by the aquatic consultant are based on national averages for areas with similar median household incomes as the Chapel Hill area. However, we believe there are regional value differences, which were not taken into account when developing the proposed fee schedules.
Currently the majority of Town pool users purchase annual passes. We have attempted to determine the current cost recovery rate for the Community Center, not including initial or continued capital costs to maintain the facility. Although it is imprecise due to facility-wide utility costs, we believe we would have to more than double the cost of annual passes to achieve similar recovery rates (approximately 66%) to those developed by the consultant for a 25-meter x 25 yard lap pool. The consultant’s projected recovery rates vary, depending on tank type: projected recovery rates for the first year of operation range from 97.9% for a family leisure pool, 66.5% for a 25 meter x 25 yard lap pool, and 68.35% for a 50 meter pool. The projected costs recovered include the debt service on the initial capital outlay.
21. What discussions have been held regarding pooling our resources with the Town of Carrboro and the school system for cost sharing?
Response: At its October work session with the Homestead Park Aquatic/Community Center Conceptual Plan Committee the Council referred the item to the newly formed Intergovernmental Parks (IP) Work Group. The group held its initial meeting on December 7, 2000 and received the Conceptual Plan Committee’s interim report. The IP Work Group is scheduled to meet again on February 1, 2001. The report was also discussed at the October 30, 2000 Assembly of Government meeting. Elected officials from both Carrboro and Orange County have been invited to the scheduled January 29, 2001 public forum on a future aquatic/community center.
22. Where will other funds come from?
Response: There are several options:
· General Obligation Bond: The Council could authorize a bond referendum for an amount needed to make up the difference between available funding and projected costs.
· Two-thirds Rule: The Town could use the two-thirds rule, in which it could issue two-thirds of the value of debt retired in a given year. A full public process and public hearing would be required, but a referendum would not be required for this limited issuance of debt. Approximately $800,000 might be available through this means based on the current level of debt service payments. Because the issuance of two-thirds bonds involves substantial issue cost, such issuance is only financially feasible in conjunction with the sale of other General Obligation bonds.
· Installment Purchase: The Town could use its authority under General Statute 160A to acquire capital equipment and buildings or make capital improvements using installment purchase contracts with repayment of principal and interest over specified periods. Under installment financing, a revenue source other than the property tax must be identified to cover the debt service. In addition, there must be a public hearing, and requests for proposals would be sent to several financial institutions.
Response: Town bonds are usually issued for a twenty-year period. Assuming $2 million in bonds for twenty years at an interest rate of 5.5%, the first full year cost of repayment would be approximately $220,000. The annual payback amount would then decline by $5,500 each year over the twenty-year period.