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HomeMy WebLinkAboutCSD-12-023 - 2012 Family Swim Pass - 3-Month Pricing1 Staff Re,~ort KIT(;x~l\`~.R tammunity Services Department www.kitthenerca REPORT TO: Community and Infrastructure Services Committee DATE OF MEETING: April 16t" , 2012 SUBMITTED BY: Mark Hildebrand, Director, Community Programs and Services , 741-2687 PREPARED BY: Denise Keelan, Manager of Aquatics and Athletics 741-2706 WARD(S) INVOLVED: All DATE OF REPORT: April 3, 2012 REPORT NO.: CSD-12-023 SUBJECT: 2012 Family 3 month Swim Pass RECOMMENDATION: For Discussion. EXECUTIVE SUMMARY: As part of 2012 Aquatic fees and charges review, staff eliminated the Aquatic Summer Season Pass and added a number of new options for swimmers to purchase year round passes. The addition of a year round pass was in response to regular users asking for the same convenience that the summer pass afforded. It was also recognized that summer passes were significantly underpriced when compared to our other purchase options. Therefore a revised structure was necessary to price swims at a consistent rate throughout the year. Since the implementation of the new passes, staff and some members of Council have received correspondence from customers indicating that the new 3 month family pass is too expensive when compared to the family summer pass from 2011. Although the number of people conveying their concerns is minimal, as summer approaches it is possible that we will receive more complaints specifically regarding the 3 month family pass rate. This report provides Council with options for consideration and discussion if they feel, or it becomes apparent, that the change to 2012 fees and charges is too burdensome to our users. BACKGROUND: The City of Kitchener operates 4 indoor pools year round and an additional 4 outdoor facilities each summer. Statistics show that 401,922 persons visit our pools each year. Our recreational swimming customers have a number of options to purchase their swim admission. a) Swim Tickets: Tickets may be purchased at any pool as a single, book of 5, 20 and 60 swim tickets. Tickets do not expire and are valid at any Kitchener pool. Seniors and children pay the same rate. Adults pay the highest rate for admission to a swim. Families may also purchase swim tickets valid for their entire family living in one household (Limit of 2 adults and their immediate children). All tickets are valid for lane swim, Aquafit, public and family swims. These ticket prices are designed to offer the buyer a 13- 1 discount when bulk buying. The most economical price is for the 60 ticket price as shown in the chart below. Due to low demand for 5 and 60 family ticket packages, these are not offered. 2012 rates Single Admit Book of 5 Tickets Book of 20 Tickets Book of 60 Tickets Child (17 Years and under $3.50 $16.50 $64.25 $170.66 Senior over 55 ears $3.50 $16.50 $64.25 $170.66 Adult (18 - 54 Years) $5.50 $26.50 $100.60 $266.68 Family (Parents with their own children) $12.50 Not offered $229.20 Not offered b) Summer Pool Pass (prior to 2012): Since the early 1970's a summer pool pass was available for purchase to use at Kitchener's pools. The summer pass was valid for an extended summer duration (varying from 3-4 months) to encourage swimming at both the indoor pools and outdoor facilities. Summer passes were available for the family, adult, senior or child. The pass was designed for convenience for the customer and to allow for quick access into the pool, the customer merely showed their pass and there is no need for handling cash or debit transactions. In 2011, this pass was valid at all City of Kitchener pools at all swims June 1St -September 20th. Patrons could swim multiple times per day at their choice of location. The family swim pass allowed for an unlimited number of children, as long as they were living in the same household. In 2011, 216 Family summer passes were sold. In 2011 the summer pass pricing was: Early bird rate (prior to May 31St): Child/ Senior $72.05 Adult $99.76 Family $193.99 June 1 -June 30 rate: Child/ Senior $83.13 Adult $110.85 Family $205.07 Regular rate (after July 1): Child/ senior $83.96 Adult $111.96 Family $207.12 Each pass was valid for 16 weeks. REPORT: In 2011, Aquatic supervisory staff began a review of the aquatic swim fees and charges which included a review of summer pool passes and the possibility of extending these year round. The review in part was prompted from patron requests for a swim pass that could be used any time of year, similar to the summer season pass. Staff recognized that our fee structure was very different for summer pricing, compared to fall, winter and spring. In order to ensure consistency, this review involved analysing current rates in addition to looking at the surrounding municipality's rates to ensure competitiveness. Part of this fee review also involved determining a cost per swimmer per visit to ensure reasonable cost recovery. Goals of the 2011 Fee Review: 1. To develop pass options available for year round purchase. 2. Standardize the rates for consistency year round. 3. Respond to customer requests for pass options on weekends and full day rates. Summary of Fee review findings: o The traditional summer season pass was priced significantly lower than all other price options for all swimmers. 13-2 o The 2011 summer pass pricing for a child or senior equated to $1.75 per swim. The adult summer pass equated to $2.33 per swim. (Assuming the participant used the pass 3 times per week). o The family summer pass of $207.12 rate equated to a price per swim of $4.32 for the entire family (Assuming the participant used the pass 3 times per week). o In the summer months, many of the families in walking distance from the pool actually swim 5- 7 times per week, and many swim twice per day. o A family book of 20 tickets equates to $11.12 per swim. The 2011 family summer pass allowed the family to swim for $4.32 (Assuming the participants use the pass 3 times per week). o Sales of the family pass have doubled since 2008. o Family Pass Sales figures for 2008 = 112, 2009 =172, 2010 = 264, and 2011 = 216. Calculating the cost per swimmer at City of Kitchener Pools With the assistance of finance, a cost per swimmer was calculated considering actual costs experienced in 2011. In 2011 the total expense to operate all pools including full time staff, part time staff, program supplies, pool chemicals, hydro, water, and maintenance materials was $3,718,667. Using the total number of swimmers that attended each pool in 2011 of 401,922, the cost per swimmer per visit in 2011 was calculated at $9.25. We recognise that this number will vary from year to year based on attendance and specialised work that each pool incurs in any specified year. In 2011 total revenue from pools alone was $2,110,117. Fee Review Results /New Fees for 2012: Based on these findings the summer pass option was eliminated, due to its inconsistency with all other pricing. In its place, a 3 month pass was developed using a formula specific to supporting swimmers who swim more than 3 times per week. A weekend pass option was created, as well as a daily rate. The 3 month pass allows the individual or a family to swim an unlimited number of times within the 3 month period, at any of Kitchener's pools. The family rate is for all members of the family, 2 adults and an unlimited number of children. 3 Month Swim Pass Rates (valid 13 weeks) Child/ Senior - $102.37 Adult- $160.87 Family- $365.61 The equation used to calculate these prices was 3 times the single rate per week, at 13 weeks with a reduction of 25%. Some complaints from our swim customers (2011 Family summer pass holders) have been received indicating that the new 3 month family pass has increased too much when compared to the summer pass from 2011. As summer approaches, it is possible that we will receive more concerns specifically regarding the Family 3 month pass rate. The senior and adult customers are quite pleased with the options and rates that were developed. The aquatic section is challenged to balance the delivery of a year round price structure that is representative of the cost of providing affordable swim opportunities. Staff believes that the new pricing is fair, considering the cost to swim as well as the pricing throughout the year. However, there is also recognition that the price difference between the 2011 Family summer season pass 13-3 and the new 3 month Family Pass is too great for some. Therefore two additional options have been forwarded for discussion and Council's consideration. Options for Council's consideration and discussion: Option 1 (No Change) Rate for the Family 3 Estimated Revenue for month Pass 2012 The 2012 Family 3 month Pass remains at the approved rate. Families that are $365.61 experiencing financial concerns with the Based on 2011 sales of revised rates have the option of applying for $g.37 per swim based family passes, 216 family 3 Leisure Access Card assistance. The on the family month passes sold would Leisure Access Card program allows swimming 3 times per equal $78,840. assistance to qualifying families of up to week $125 per person per season. Option 2 Rate for the Family 3 Estimated Revenue for month Pass 2012 Adjust the 2012 Family 3 month pass to a rate calculated based on families swimming $243.75 Based on 2011 sales of 2 times per week. Statistically, on a year family passes, 216 family 3 round basis, most families on average swim $g.38 per swim based month passes sold would 2 times per week. Using the same on the family equal $52,650 calculation with a twice per week allowance swimming 2 times per the family rate would be a lower rate. week. Option 3 Rate for the Family 3 Estimated Revenue for month Pass 2012 Adjust the 2012 Family 3 month pass rate to be phased in over the next 3 years. $259.83. Based on 2011 sales of In 2013 the rate would be $312.66. Finally family passes, 216 family 3 in 2014 the family 3 month pass would be $6.66 per swim based month passes sold would $365.61. Determined by a third of the on the family equal $56,123 difference applied each year. swimming 3 times per week. It should be noted that the above figures are based on 2011 participation statistics. Weather plays a significant role in the associated revenues collected and costs each year in the Aquatic budgets. Hot dry summers improve participation, while colder, rainy summers see less using our pools. Comparison rates to other municipalities: Neighbouring municipalities offer varied options for swimmers as well. The chart, attached for reference, outlines these options for Council's consideration. It is important to note that some neighbouring municipalities do not offer any type of pass option. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Community Priorities: Quality of Life -This initiative relates to the Aquatic mandate to bring families and people together in our community centres to be active, socialize and improve the health of our citizens through activities that promote fitness. Swimming and Aquatic programs offer fitness, leadership development and opportunities for social interaction for all ages. 13-4 FINANCIAL IMPLICATIONS: The chart above outlines the expected revenue for each of the options if they were implemented. Option 2 or 3 may result in less revenue based on estimated sales for 2012. Revenue from all summer pass sales in 2011 was approximately $70,200. Revenue from Family summer pass sales in 2011 was $38,437. Revenue in 2011 from all recreational swim admissions was $588,389. COMMUNITY ENGAGEMENT: Our swim patrons are in our facilities daily. Well over 1,000 swimmers visit the pools each week and are actively engaged with our staff. This initiative began with requests from swimmers to develop a variety of swim pass options, mainly for ease of use. Through feedback forms and email correspondence we reviewed these requests and began to plan for a review of our fee structure. These fee changes were communicated to the swim patrons through a mail out and signage in each of the pools in January. Swimmers were informed in 2011 that staff was committed to developing a new pass structure for use in 2012. This was verbally communicated and a mail out was completed in January to our summer pass patrons. Patrons were informed via the City website as well as postings in our pools. ACKNOWLEDGED BY: Jeff Willmer, Deputy CAO, Community Services 13-5 Recreational Swim 2012 Comparison Chart Kitchener /Waterloo / Barrie/ London Admission Kitchener Waterloo Barrie London $ $ $ $ Single Child /Senior 3.50 / 3.50 5.00 / 5.00 4.00 / 4.52 3.50 / 4.00 Single Adult 5.50 5.50 5.38 5.00 Family 12.50 12.75 16.41 13.25 5 Tickets Child / Senior 16.50 /16.50 5 Tickets Adult 26.50 10 Tickets Child /Senior 36.31 / 36.31 34.30 / 38.76 10 Tickets Adult 44.36 51.19 10 Tickets Family 101.15 135.15 20 Tickets Child / Senior 64.25 / 64.25 51.75 / 73.45 20 Tickets Adult 100.60 95.82 20 Tickets Family 229.20 N / A 25 Tickets Child / Senior 71.50 / 71.50 25 Tickets Adult 90.90 25 Tickets Family 226.96 50 Tickets Child / Senior 127.19 / 127.19 50 Tickets Adult 153.25 50 Tickets Famil 426.77 60 Tickets Child / Senior 170.66 /170.66 60 Tickets Adult 266.68 1 Month Pass Child / Senior 34.30 / 38.76 1 Month Pass Adult 51.19 1 Month Pass Family N / A 3 Month Pass Child 102.37 85.76 103.32 3 Month Pass Senior 102.37 96.91 131.29 3 Month Pass Adult 160.87 128.10 185.11 3 Month Pass Family 365.51 N/ A N/ A Summer Pass Outdoor Pool Child / Senior 81.76 / 81.76 60.83 / 83.68 Adult 81.76 83.68 Family 181.51 134.44 All Day Unlimited Child /Senior 5.25 / 5.25 Adult 8.25 Family 18.75 Weekend Rates(Fri.5pm- Sun) Child / Senior 8.75 / 8.75 Adult 13.75 Family 31.25 Yearly Pass Child 257.26 Yearly Pass Senior 290.69 Yearly Pass Adult 374.43 Yearly Pass Family 639.78 13-6