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THAT WE SHOULD GO IN THERE. ALL RIGHT. YOU READY? GOOD AFTERNOON . TODAY IS TUESDAY, MARCH 5TH
[CALL TO ORDER]
YEAR. 2024 THIS IS A GREAT DAY BECAUSE IT IS THE END OF THE PRIMARY VOTING IN A FEW HOURS.WE ARE IN COUNCIL CHAMBERS AT 222 NORTH TENNESSEE STREET IN THE GREAT CITY OF MCKINNEY. IT'S 305 IN THE AFTERNOON. UM FIRST ORDER OF BUSINESS IS PUBLIC COMMENTS ON AGENDA ITEMS OF WHICH I DON'T SEE ANY WE WILL MOVE STRAIGHT TO OUR WORK SESSION ITEM. FIRST REGULAR AGENDA ITEMS. IS THERE ANY ITEM ON THE REGULAR AGENDA THAT COUNCIL ELECTS TO ASK QUESTIONS OF STAFF. CURRENTLY PRESENT. WE WANT TO DISCUSS PRIOR TO THIS EVENING. THAT WE WILL GO TO OUR
[Presentation on APEX Centre Rate Study]
WORK SESSION I PRESENTATION ON A PE CENTER RATE STUDY. HELLO. HI. GOOD AFTERNOON. YOU'RE NOT STEVE TILTON. I WAS ON MY NO, JUST A LITTLE BIT SHORTER. UH, GOOD AFTERNOON COUNCIL AND MAYOR AND EVERYONE. MY NAME IS ERICA LIGHT . I AM THE MANAGER AT THE A PE CENTER. SO I WANNA INTRODUCE MYSELF. UM I'VE BEEN WITH THE CITY OF MCKINNEY NOW FOR FOUR YEARS, UM, CAME IN AS THE ASSISTANT MANAGER UNDER TERESA THOMASON AND WAS PROMOTED TO MANAGER ABOUT TWO YEARS AGO. SO THANK YOU FOR ALLOWING ME THIS TIME TO COME BEFORE YOU AND SHARE AND GIVE YOU SOME UPDATES ON THE APEX CENTER. AND WHERE WE ARE AND WHERE WE'RE TRYING TO GO. UM, SO TODAY WHEN I TALK A LITTLE BIT ABOUT, UM, WHAT THE APEX CENTER IS DOING. GIVE YOU SOME UPDATES ON OUR CURRENT STATUS. UM TALK ABOUT SOME OF THE IMPROVEMENTS THAT WE'VE HAD IN THE PAST YEAR. WHAT ARE SOME OF OUR FUTURE PLANS AND MOST IMPORTANTLY, TO KIND OF TALK ABOUT OUR PRICE STRUCTURE AND RATE COMPARISONS. SO AS MOST OF YOU KNOW, THE APEX CENTER. UM IS AN 80,000 SQUARE FOOT FACILITY.UM WE HAVE OVER THERE A COMPETITION, AN INDOOR COMPETITION POOL, OUTDOOR LEISURE POOL, INDOOR LEISURE POOL. WE HAVE A SUPERVISED PLAYROOM AREA. WE HAVE GROUP EXERCISE STUDIOS. WE HAVE WE OFFER OVER 80 GROUP EXERCISE CLASSES TO OUR MEMBERS WEEKLY.
WE HAVE AN INDOOR DRY SAUNA. UM AND A FEW OTHER AMENITIES LIKE A GYMNASIUM AND AN INDOOR TRACK WALKING TRACK. UM, WE ACTUALLY TURNED SEVEN YEARS OLD LAST WEEK . AND WE, UM ARE AN NOW SITTING AT PROBABLY ABOUT 5800 HOUSEHOLDS. UM IN MEMBERSHIPS THAT NUMBER UM, TO GIVE YOU AN IDEA IS ABOUT 16,000 INDIVIDUAL MEMBERS, SO WE'VE GROWN QUITE A BIT FROM OUR INCEPTION. HERE'S A LITTLE BIT OF DATA ON OUR MEMBERSHIP DATABASE WE HAVE ABOUT 89% OF OUR MEMBERS ARE RESIDENTS OF MCKINNEY. UM 61% OF THOSE MEMBERS ARE SIGNED UP UNDER OUR MONTHLY MEMBERSHIP PROGRAM RATHER THAN OUR ANNUAL 64% OF THOSE MEMBERSHIPS ARE FAMILIES, SO WE ARE DEFINITELY A FAMILY ORIENTED FACILITY. WE AVERAGE OVER 1000 DAY PASS USERS PER MONTH THAT NUMBER UM, INCREASES DURING THE SUMMER. WE AVERAGE 40,000 MEMBER VISITS PER MONTH IN THE OFF SEASON, WHICH RUNS FROM ABOUT SEPTEMBER THROUGH MAY, UM IN THE SUMMER TIME WE SEE OVER 70,000 MEMBER VISITS, IT GETS REALLY HIGH. UH, DURING THE MONTHS OF MAY THROUGH AUGUST, WHICH IS OUR SUMMER SEASON, IT GOES FROM MEMORIAL DAY TO LABOR DAY. WE ADD AN ADDITIONAL 800 TO 1000 HOUSEHOLDS TO OUR DATABASE. UM AND THAT TAKES US UP TO WELL OVER 18,000 INDIVIDUAL MEMBERS OF OUR FACILITY. UM AND JUST TO POINT OUT WE HAVE APPROXIMATELY 600 OR SO CITY EMPLOYEES THAT ARE ALSO ACTIVE MEMBERS OF OUR FACILITY. SOME OF OUR, UM, IMPROVEMENTS THAT WE'VE DONE IN THE PAST YEAR, WE ADDED A DRY SAUNA, WHICH IS ON THE AQUATIC DECK. IT'S A PRETTY SMALL SPACE.
IT'S ABOUT 12 BY 12 COMFORTABLY CAN ACCOMMODATE ABOUT EIGHT INDIVIDUALS. UM IT IS USED, UM A LOT FROM 4:30 A.M. UNTIL WE CLOSE. THERE'S TYPICALLY 4 TO 6 PEOPLE IN THE SAUNA AT A TIME.
WE ADDED 1/5 CABANA TO THE OUTDOOR POOL AREA, AS YOU CAN SEE IN THE PICTURE THERE. UM THE CABANAS IS ONE OF OUR, UM POPULAR AMENITIES IN THE SUMMERTIME. THEY RENT OUT FOR ABOUT $35 FOR MEMBERS $50 FOR NON-MEMBERS PER HOUR AND WE SAW THAT WE COULDN'T KEEP UP WITH
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THE DEMAND. SO LAST SUMMER, WE DECIDED TO INVEST IN 1/5 1. SO WE HAVE FIVE CABANAS NOW, UM WE REPLACED THE WIND SAILS OVER THE OUT. TOP POOL THAT WAS ABOUT A $23,000 PROJECT THAT WE COMPLETED, UM, IN THIS FISCAL YEAR. OTHER IMPROVEMENTS, ONE THAT WAS DESPERATELY NEEDED WAS OUR FITNESS FLOOR. UM, AS YOU CAN SEE IN THE TOP PICTURE WAS THE OLD FLOOR, WHICH WAS KIND OF A CHECKERBOARD, UM, TILE FLOOR. IT WAS THE BEAT UP PRETTY BAD. UM WE KNEW THAT WE NEEDED TO REPLACE IT BECAUSE IT WAS AGING OUR FACILITY. AND SO WE REPLACED IT WITH A RUBBER FLOORING. THAT IS A LOT MORE DURABLE. UM, IT IS A SOLID, UM, FLOORING ONE OF THE THINGS ABOUT THE CHECKERBOARD FLOORING TOWARDS THE LATTER PART OF LAST YEAR WE BEGAN RUNNING OUT OF TILES IN THAT PARTICULAR T WAS NO LONGER OFFERED. AND SO IT STARTED TO LOOK A LITTLE HODGEPODGE. AND SO NOW WE HAVE THIS NICE, PRETTY TILE, UM, RUBBER FLOORING IN THE FITNESS AREA. UM AND WE ALSO REPLACED THE FLUORINE IN OUR LOBBY AREA. THAT PROJECT FOR US WAS ABOUT $171,000 TO DO WE ALSO BUDGET ANNUALLY ABOUT $250,000 FOR FITNESS EQUIPMENT. UM WE PRIDE OURSELVES ON THE ENSURING THAT OUR EQUIPMENT IS STATE OF THE ART. UM PIECES GO DOWN. WE HAVE A COMPANY THAT COMES OUT AND REPAIRS IT OR REPLACES IT RATHER RATHER RATHER QUICKLY. UM OUR REPLACEMENT PLAN IS ABOUT 3 TO 4 YEARS, SO WE'RE TRADING OUT OUR TREADMILLS OUR CARDIO EQUIPMENT BEFORE THEY GET TO THAT PLACE.WHERE PARTS ARE NOT AVAILABLE IN THEY'RE OUT OF WARRANTY, SO WE'VE BEEN DOING A PRETTY GOOD JOB WITH KEEPING UP WITH THAT, UM, ANNUALLY. LOOKING AHEAD, UM, ONE OF THE THINGS THAT WE ARE ENDEAVORING TO DO IS TO ADD AN OUTDOOR FITNESS AREA. UM WITH THE NUMBERS THAT I MENTIONED EARLIER. WE ARE GROWING OUT OF SPACE. WE HAVE, UM, A SUMMER CAMP WHERE WE HAVE OVER 100 KIDS , WHICH IS THE MAX THAT WE CAN ACCOMMODATE. UM AND IT TYPICALLY SELLS OUT BY THE END OF APRIL, AND IT DOESN'T START UNTIL THE LAST WEEK IN MAY. SO WE'VE ALREADY OPENED UP REGISTRATION.
UM, OUR SUMMER. WE DO NOT HAVE ENOUGH SPACE TO HOUSE ANY ADDITIONAL KIDS, AND WE'RE RESTRICTED WITH HOW MUCH SPACE WE HAVE FOR THEM. UM WE HAVE OTHER PROGRAMS TO SOME OF OUR EXERCISE CLASSES THAT WE'VE HAD TO MOVE INTO THE GYM BECAUSE OF SPACE. THE CLASSES ARE GROWING, UM OUT OF THE AEROBIC STUDIO, SO WE HAVE TO PUT THEM IN THE GYM. UM AND SO WE'RE LOOKING TO ADD THIS OUTDOOR AREA. IT'S SIMILAR TO WHAT YOU WILL SEE, LIKE AT THE NEW, UM ALLEN RECREATION CENTER. THEY HAVE A REALLY NICE, UM ROOFTOP OUTDOOR UM, ONE OF THE FACILITIES IN PLANO THAT WE VISITED ALSO HAVE A SIMILAR OUTDOOR AREA. SO WHAT WE WILL BE LOOKING AT DOING IS ENCLOSING OR FENCING IN THE EAST LAWN AREA OF OUR FACILITY AND ADDING SOME ARTIFICIAL TURF STORAGE. AND THEN, OF COURSE, A LARGE SHADE STRUCTURE SO THAT WE ARE ABLE TO PROGRAM IT DURING THE SUMMER MONTHS AS WELL. UM, SO WE'RE LOOKING TO DOING THAT. WE'RE ALL UM RIGHT NOW. ACTUALLY AS OF TODAY, WE JUST REPLACED THE STAIRS TO THE OUTDOOR SLIDES. WE HAVE A SLIDE TOWER WITH FOUR SLIDES THAT COME OFF OF THAT THE STAIRS. UM OR, UM IN BAD REPAIR, AND SO WE JUST REPLACE THOSE? THEY'LL FINISH THAT PROJECT TODAY. THAT WAS ABOUT 100 AND 43,000. WE ARE IN NEED OF REPLASTERING OUR POOLS. AND SO, UM ESTIMATES RIGHT NOW ARE AT ABOUT $300,000 PER POOL WHERE I'M LOOKING TO START WITH OUR INDOOR LEISURE POOL THAT NEEDS IT THE MOST, AND WE'RE BUILDING THAT INTO OUR FISCAL YEAR. 25 BUDGET UM OF COURSE WITH YOU KNOW, THE AGING BUILDING AS I MENTIONED SEVEN YEARS OLD, OTHER THINGS LIKE WATER HEATERS AND THINGS LIKE THAT WILL ALSO NEED TO BE REPLACED. UM, PRETTY SOON. HERE IS A LOOK AT SOME OF OUR FINANCIALS AND PLEASE STOP ME.
IF YOU HAVE QUESTIONS AS I'M GOING THROUGH THIS, UM, OUR PAYROLL. I WANTED TO SHOW HERE SOME OF OUR MAJOR INCREASES, AND THIS ISN'T OF COURSE, ALL OF OUR EXPENDITURES. BUT OUR PAYROLL IS ABOUT 60% OF OUR BUDGET. AND IN 2019. WE WERE AT ABOUT 2.6 MILLION. UM LAST YEAR WE WERE AT ABOUT 3.1, AND THAT ONLY INCLUDED A PORTION OF THE SALARIES, UM, INCREASE THAT WE
[00:10:03]
RECEIVED LAST YEAR. UM SOME OF OUR OTHER HIGH EXPENDITURES, OF COURSE, ARE ARE BUILDING MAINTENANCE AND OUR EQUIPMENT REPLACEMENT. UM OUR TOTAL REVENUE IN 2019. WE WERE AT 5,068,000 FISCAL YEAR. 23 WE'RE AT 5.5. AS YOU CAN SEE, THE INCREASE WAS ONLY 481,000 OVER THE FOUR YEARS. OUR EXPENDITURES , HOWEVER, INCREASED OVER A MILLION DOLLARS, SO OUR REVENUE IS NOT INCREASING AT THE SAME RATE OF OUR EXPENDITURES. AND SO THAT'S MAINLY WHY I'M HERE TODAY TO KIND OF TALK ABOUT THIS. UM WE ARE, OF COURSE, REQUESTING YOUR SUPPORT FOR A MEMBERSHIP RATE INCREASE. WE HAVE NOT HAD A RATE INCREASE. SINCE 2019. OUR MEMBERSHIP RATES HAVE REMAINED THE SAME WHILE OUR EXPENDITURES HAVE CONSTANTLY INCREASED, UM, WE'RE NOT ABLE TO GENERATE ENOUGH REVENUE TO COVER THE FAST INCREASING EXPENDITURES THAT ARE COMING AT US. UM AND SO WE ARE LOOKING AT WHAT CAN WE DO? UM, WE HAVE AGAIN. A LACK OF SPACE OR SPACE LIMITATIONS TO EXPAND OUR PROGRAMS. FOR EXAMPLE, OUR SUMMER CAMP THAT DOES VERY WELL IT BRINGS US ABOUT TWO HUN $250,000 EVERY SUMMER. WE CAN'T GO BEYOND THAT, BECAUSE WE CAN'T TAKE ANY ADDITIONAL KIDS. UM, SO WITHOUT RAISING THE RATES OF OUR PROGRAMS, AND WE DON'T WANNA PRICE PEOPLE OUT OF OUR PROGRAMS . AND SO, UM, WE'RE LOOKING AT WHAT CAN WE DO IN TERMS OF MEMBERSHIP RATES, SINCE WE HAVE NOT HAD A FIVEYEAR RATE INCREASE IN FIVE YEARS? UM IN THIS CURRENT FISCAL YEAR. WE ARE LOOKING AT, UM APPROXIMATELY 5.9 MILLION IN REVENUE AND EXPENDITURES OF ABOUT 6.3 MILLION JUST TO GIVE YOU AN IDEA. UM HERE ARE OUR CURRENT, UM, MEMBERSHIP RATES. SO THIS IS WHAT AN ANNUAL MEMBERSHIP WOULD LOOK LIKE. UM OUR ANNUAL MEMBERSHIP IS A ONE TIME PAYMENT PAID IN FULL AT THE START OF YOUR MEMBERSHIP. IT IS ABOUT 15 TO 18% LOWER IF YOU PAY IT IN FULL VERSUS IF YOU GO ON A MONTH TO MONTH MEMBERSHIP AND SO, FOR EXAMPLE, UM, A YOUTH MEMBERSHIP AND I'M ONLY GONNA TALK ABOUT RESIDENT RIGHTS. UM OUR RESIDENT RATES FOR AN ANNUAL UM IS $345 YOU SAVE ABOUT $76 BY GOING THE ANNUAL UM ADULTS ARE 575. YOU WOULD SAVE ABOUT 100 AND $21 AND THE FAMILY IS 805. UM WE HAVE LESS THAN 40% OF OUR MEMBERSHIP BASE THAT ARE ON AN ANNUAL OUR ME. OUR MONTHLY MEMBERSHIPS ARE A LITTLE BIT HIGHER AT 6060. 61% ERIC. I'M GONNA ASK A QUESTION.WE ARE TALKING ABOUT IF I REMEMBER RIGHT FROM WHAT YOU SAID ABOUT A $300,000 DELTA THIS YEAR BETWEEN ANTICIPATED REVENUE AND ANTICIPATED EXPENSES. WHAT BUCKET OF CITY MONEY IS IT THAT WILL COVER THAT? IS IT CDC MONEY? IS IT GENERAL FUNDS MONEY? IT FIGURED OUT? YEAH WE'LL HAVE TO FIGURE IT OUT. UM THE WELL, THE POINT I'M GETTING AT IS AND I'LL LET YOU GO AFTER THIS IS THAT IF IT'S IF IT'S III . I THINK THAT OUR NON-RESIDENT FEES ARE TOO LOW COMPARED TO OUR RESIDENT FEES IF THE GENERAL TAXPAYER IS GOING TO BE SUPPLEMENTING THIS, THE NON-RESIDENT NONPROPERTY TAXPAYING PERSON NEEDS TO CARRY MORE WEIGHT. SO OUR, UH NON RESIDENTS RATES, UM, HAVE ALWAYS BEEN SET AT 40% HIGHER THAN OUR RESIDENT RATES, AND THAT'S WITH OUR MEMBERSHIPS AS WELL AS OUR PROGRAMS. THEY DIDN'T LOOK 40 IS THAT 40% HIGHER THAT'S NOT 40% HIGHER. FROM 10. THAT IS MAYBE 20% HIGHER. IS WITH THAT STRIKING ME AS 40. I COULD GO FOR THE DELTA HAS BEEN COVERED BY GENERAL FUNDS. IN THE PAST. WE WERE ON A KIND OF CD C'S TICKET WHEN WE FIRST OPENED UP ABOUT THEM COVERING THE SUBSIDY OF IT, ONE OF THE THINGS THAT WE LEARNED WHEN WE OPENED UP APEX IN ITS LOCATION. WE THOUGHT WE WOULD HAVE A LOT OF NON-RESIDENTS AND ERIC CAN PROBABLY SPEAK TO ACTUAL NUMBERS OF THE AMOUNT OF NON-RESIDENT MEMBERS WE HAVE AT THE FACILITY, I THINK IS AT AROUND 10% OR SO IT WASN'T AS BIG AS WE THOUGHT.
SO IT MAY NOT MOVE AS MUCH AS YOU THINKING. EVEN IF WE WERE TO TAX THE NON RESIDENTS. I THOUGHT EARLIER IN THE PRESENTATION. FORGIVE ME IF I DIDN'T SEE THAT, RIGHT? IT WAS SOMEWHERE CLOSER TO 30% WAS NON-RESIDENT. IT WAS 8989 RESIDENTS HERE. 89% RESIDENTS 11% NON RES. OK, THANK YOU. SORRY ABOUT THAT. THANK YOU. OK? UM LET'S SEE MONTHLY RATES. SO THIS GIVES YOU AN IDEA
[00:15:02]
WHAT OUR MONTHLY RATES ARE, UM, WHEN YOU SIGN UP FOR A MONTHLY MEMBERSHIP, THERE IS A $75 INITIATION FEE. IT'S NON REFUNDABLE. UM AND IT COMES OFF OF A CREDIT CARD MONTHLY. UM A YOUTH OR SENIOR IS ABOUT $35 A MONTH, WHEREAS AN 80 A FAMILY GOES UP TO $81. THIS NEXT SLIDE.UM WILL SHOW YOU GIVE YOU AN IDEA OF THE FACILITIES THAT WE BENCHMARK AND WHERE WE STAND. IN COMPARISON, THE TOP THREE ARE YOUR PRIVATE FACILITIES, YOUR LIFETIMES, YOUR L, A FITNESS. UM OF COURSE WE CAN'T AND WE DON'T COMPETE WITH THOSE FACILITIES. YOU GET A LOT MORE. UM BUT IT IS ALSO COSTS A LOT MORE AS YOU CAN SEE, UM, YOUR FAMILY MONTHLY FOR LIFETIME. MCKINNEY IS ABOUT $369. FAMILY OF THREE OR $219 A MONTH FOR ONE PERSON WHERE OURS IS $58. UM THEY ALSO DO NOT OFFER AN ANNUAL OPTION. UM, BUT WE JUST TOOK THE MONTHLY NUMBER AND MULTIPLY IT BY 12 TO SEE WHAT IT WOULD COME OUT TO. THE FACILITIES THAT WE DO BENCHMARK AGAINST WOULD BE YOUR ALL AND YOUR FRISCO AND YOUR, UH, PLANO FACILITIES AND I'LL JUST MOVE OVER TO THE ORANGE SECTION. THE MONTHLY RATES. UM THOSE FACILITIES. OF COURSE. THEY ARE SUBSIDIZED. UM THEY DON'T OFFER AN ANNUAL AT THE NEW STEVEN TARELL REC CENTER. UM, BUT THEY DO A MONTHLY THEIR MONTHLY RATES , OR ALL OF THEIR RATES ARE ACTUALLY PRETTY MUCH IN LINE WITH WHAT WE ARE CHARGING AT THE APEX CENTER. A LOT OF THEIR POLICIES, THEIR RATES AND EVERYTHING WERE SET UP BASED ON A PE CENTERS, UM, RIGHTS AND POLICIES. SO FOR A FAMILY MEMBERSHIP AT THE NEW ALLEN FACILITY, IT'S $85 A MONTH WHERE OUR RATE IS $81. FOR A SENIOR AND A YOUTH. IT'S $35 AND WE'RE AT $35 WHERE IT DIFFERS WHEN YOU GET TO FRISCO. FRISCO IS A LITTLE LESS EXPENSIVE, UM, THAN US IN TERMS OF AN INDIVIDUAL AS WELL AS A FAMILY, RIGHT. AND THEN THE PLANO REC CENTERS WHICH , UM, YOU KNOW THEY ARE SMALLER FACILITIES. THEY DON'T OFFER AS MUCH AS WE OFFER, BUT THEIR RATES ARE VERY LOW. UM, THE ALLEN CENTER, I WILL POINT OUT NOT HAVE WATER. THEY DON'T HAVE A POOL. AND SO OUR RATES ARE COMPARABLE, BUT WE DEFINITELY OFFER MORE IN TERMS OF HAVING AN INDOOR AND AN OUTDOOR POOL. UM WITH OUR FACILITY. I'VE ALSO INCLUDED WHAT A 10% AND A 15% BUT I'LL SHOW YOU THAT A LITTLE BIT MORE ON A DIFFERENT SLIDE. UM SO WE ARE. WE'VE DONE SOME CALCULATIONS ON WHAT A 10% OR A 15% INCREASE WOULD LOOK LIKE, UM, WITH EITHER OF THOSE WE WILL BE LOOKING AT APPROXIMATELY 450 TO $670,000 ANNUALLY. AND THAT'S BASED ON OUR CURRENT NUMBERS OF MEMBERSHIPS. SO THIS SLIDE HERE WILL SHOW YOU WHAT A 10% INCREASE WOULD LOOK LIKE, UM, OUR CURRENT RATES AGAIN, A MONTHLY RATE WOULD BE IS 59 $58 A MONTH A 10% INCREASE WOULD TAKE YOU TO $64. IF YOU GO DOWN TO WHERE OUR ANNUAL RATES ARE. A 10% INCREASE FOR AN ADULT WOULD GO FROM 575 TO $633 ANNUALLY. A FAMILY 805 TO 886 WITH THE 10% INCREASE, AND BASED ON OUR CURRENT NUMBERS AGAIN, WE'D BE LOOKING AT ABOUT $450,000 INCREASE IN REVENUE BY, UM, DOING A 10% INCREASE. THIS NEXT SLIDE SHOWS YOU WHAT A 15% INCREASE WOULD LOOK LIKE. UM AND 15% INCREASE BASED ON OUR CURRENT MEMBERSHIP NUMBERS, UM, WOULD GAIN US ABOUT $670,000.
ANNUALLY IN REVENUE. UH, THE DIFFERENCE IS, IT'S A LITTLE BIT HIGHER, FOR EXAMPLE, IN ANNUAL ADULT WOULD GO FROM 575 TO 661, AN ANNUAL FAMILY WOULD BE 805 TO 926 SO SLIGHTLY HIGHER. WOULD EXPECT AN ATTRITION RATE INCREASE WITH THE INCREASE IN RATES. I EXPECT SOMETHING. YES ABSOLUTELY. WHEN YOU'RE ANTICIPATING THE, UM THE INCREASE IN REVENUE ARE INCORPORATING INTO THAT. ESTIMATE AND ATTRITION. RATE OF SOME AMOUNT, OR ASSUMING THAT ALL MEMBERSHIPS REMAIN. WE ARE ANTICIPATING WE DON'T HAVE A SPECIFIC NUMBER OF WHAT THAT RATE WOULD BE. UM WE DO KNOW THAT IN THE SUMMER MONTHS THAT NUMBER ARE IT INCREASES WHEN WE
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DID THESE NUMBERS? WE BASED IT ON OUR OFF SEASON NUMBERS, SO WE DIDN'T FACTOR IN BUT YOU DID IN A WAY. IT CANNOT FACTOR IN IN ATTRITION RATE IN A WAY BY USING YOUR OFFBEAT, CORRECT I DID NOT SEE ON THE CAPITAL IMPROVEMENT. I HAVE BEEN ON A LOT WITH TAKING A LOT OF EMAILS REGARDING THE ELEVATOR. YOU CAN SEE THAT ON THE CAP CAPITAL IMPROVEMENT. YEAH, SO THERE BEEN ANY MORE THOUGHT GIVEN TO THAT WE ARE ACTUALLY SOME EMAILS WENT OUT TODAY TO START THE CONVERSATION OF YOU KNOW WHAT IT WOULD TAKE TO REPLACE OR TO ADD ANOTHER ELEVATOR AT THE APEX CENTER. IT HAS BEEN A PAIN POINT FOR US. WHAT IS? IS IT A THIS AND AN O? WHAT'S IN THAT? IT'S A TK ELEVATOR AND HAD OUR CONTRACT IS WITH OTIS, UM, TO GIVE YOU A LITTLE BACKGROUND. WE'VE HAD SOME ISSUES OVER TIME WITH THE ELEVATOR. UM TKK IN LAST YEAR AND DISCOVERED THAT THE OIL THAT WAS BEING USED BY OTIS WAS INCORRECT. SO IT WAS SLUSH. THEY WERE PUTTING SLUDGE INTO THE ELEVATOR. UM THEY CORRECTED THE PROBLEM. THEY THEN DISCOVERED THAT THERE WERE SOME ISSUES WITH THE PACKING SO THAT THEY REPLACE THAT. UM, SO WE SPENT PROBABLY ABOUT $50,000 CLOSE. TO LAST YEAR TO GET THAT REPAIRED. UM IT'S BEEN LESS THAN SIX MONTHS AND IT'S DOWN AGAIN. UM WE TRY TO GET TK BACK OUT BECAUSE WE THEY WERE THE LAST TO WORK ON IT . UM THEY WOULD NOT BE ABLE TO GET TO US UNTIL MIDDLE OF MARCH. HAVE YOU HAD A AN ESTIMATE ON REPLACING IT? WE HAVE WE HAVE AN OWN REPLACEMENT YET, SO WE JUST STARTED THAT CONVERSATION TODAY TO START TO GET SOME NUMBERS ROLLING FOR THAT, UM, IT SEEMS LIKE THAT WOULD BE A WAY TO GO, ESPECIALLY IF WE'RE SPENDING 50,000 PUT IN A FEW ELEVATORS IN MY DAY. I KNOW THE PAIN. SO THAT IS OUR NEXT CONVERSATION OF WHAT THAT WILL COST AND WHAT THAT WILL TAKE FOR US TO DO. UM I. I DEFINITELY THINK THAT IT'S SOMETHING THAT IS NEEDED. IT'S BEEN DOWN WAY TOO OFTEN, AND IT'S SUCH AN INCONVENIENCE BECAUSE IT'S THE ONLY WAY FOR OUR MEMBERS TO GET TO THE THIRD FLOOR. WE'RE ABLE TO BRING THEM IN ON THE MAIN FLOOR WHERE THE POOL IS, BUT WE CAN'T GET ANYONE TO THE THIRD FLOOR. SO YES. UM CAN YOU CLARIFY SOMETHING FOR ME ? UH, NON-RESIDENT EMPLOYEES. WHAT RATE DO THEY NORMALLY PAY? UM IF THEY ARE A CITY EMPLOYEE, THEY ARE ELIGIBLE FOR A FREE MEMBERSHIP TO OUR FACILITY, AS WELL AS OUR OTHER RECREATION FACILITIES THAT WAS ESTABLISHED IN JANUARY OF LAST YEAR. UM, IF YOU WANTED TO DO A FAMILY MEMBERSHIP ON TOP OF YOUR FREE MEMBERSHIP, IT'S $23 A MONTH AND IT DOESN'T MATTER WHETHER YOU'RE A RESIDENT OR NON RESIDENTS. IF YOU ARE AN EMPLOYEE OF THE CITY, SO WHEN WE'RE LOOKING AT NON-RESIDENTS, WE'RE LOOKING REALLY LOOKING AT NON RESIDENT NON RESIDENTS, NON EMPLOYEES. MHM. YES SO AGAIN. OUR UM WE ARE LOOKING FOR YOUR SUPPORT. UM, WE WOULD LIKE TO LOOK AT A 15% INCREASE IN MEMBERSHIP RATES. WE THINK THAT 15% WOULD BE JUST ENOUGH TO HELP US WITH TO COVER SOME OF THESE EXPENDITURES AS WELL AS HOPEFULLY NOT HAVE TO COME BACK TO YOU FOR A COUPLE OF YEARS TO HAVE THE SAME DISCUSSION AND AGAIN. IT'S BEEN FIVE YEARS. UM SINCE WE'VE RAISED THEM, I SUPPORT IT COMPLETELY. THIS PROJECT IS NEAR AND DEAR TO ME, BECAUSE THIS IS A PROJECT THAT WE TOOK ON WHEN I WAS ON CDC AND COMING UP WITH A FACILITY THAT WOULD BE A COST NEUTRAL FACILITY IS REALLY IMPORTANT. WE HAVE ACHIEVED THAT. UM BUT THAT INCREASING RATES IN THIS INFLATIONARY PERIOD FOR FIVE YEARS WE ARE AT RISK OF NOT HAVING A NEUTRAL FACILITY. I AM IN FAVOR OF INCREASING THE RATES. WE DON'T COMPETE WITH L, A FITNESS AND THOSE TYPES AND I UNDERSTAND WHAT YOU MEAN FROM THE SIZE AND OTHER PHYSICAL EXERCISE EQUIPMENT AND WHATNOT. BUT WE CERTAINLY HAVE WATER FEATURES AND THINGS THAT ARE UNIQUE AND THEY DO NOT SHARE A BIG FAMILY ATTRACTOR THAT IS LOST ON FAMILIES OVER AT LIFETIME OR THE OTHERS. YEAH, WE'RE DEFINITELY A BIG FAMILY, UM, FACILITY IN THE SUMMER, ESPECIALLY ON THAT'S WHEN WE SEE THOSE NUMBERS. GROW UM AND SO AND WE'RE DOING, YOU KNOW, WORKING REALLY HARD TO TRY TO STAY WITHIN THAT COST RECOVERY. I KNOW A COUPLE OF YEARS AGO, WE WERE YOU ALL WERE LOOKING FOR US TO AT LEAST BE 75% WE EXCEEDED THAT WE'RE STILL CONTINUING TO BE UP IN THE 90% AT THE END OF THE DAY, AND WE WANNA MAKE SURE THAT WE REMAIN THERE. WE HAVE BEEN THROUGH SOME DIFFICULT TIMES WE HAVE. I WOULD ENCOURAGE A 15% RATE INCREASE TO EXTEND THE TIME BEFORE YOU'RE BACK TO ASK US AGAIN. YES I'M I'M IN. I'M GOOD. I'M GOOD WITH 15. YEAH, IN FAVOR. I'M IN FAVOR OF HER INCREASE, BUT I AM JUST LOOKING FROM 2019 TO NOW. 15%[00:25:09]
SEEMS A LITTLE SMALL TO ME. JUST UH I'M JUST LOOKING AT WHAT YOU'RE TALKING ABOUT HERE. THE POOL REPLACEMENT ITSELF. BY THE TIME YOU GET TO 2025. THAT ESTIMATE IS NOT GONNA BE $300,000. I MEAN, POOLS. ESPECIALLY IN COLLIN COUNTY. THE COST OF A POOL RIGHT NOW, JUST TO EVEN BUILD OR MAINTAIN ONE THAT JUST INCREASING YOU KNOW SIGNIFICANTLY A YEAR OVER YEAR.UM, I WOULD I, I I'M I'LL BE IN FAVOR. WE'RE ALL IN FAVOR OF THE 15% BUT I WOULD LIKE YOU TO LIKE KIND OF DEEP DIVE INTO LIKE, I KNOW. THE 11% OF NON-MEMBERS IS JUST KIND OF SMALL. BUT EVEN AT HALF OF THE PRICE OF A LIFETIME FITNESS, I THINK IT'S WORTH LOOKING AT, BECAUSE THEY'RE NON RESIDENTS. I MEAN, THEY'RE STILL SAVING VERSUS GOING TO ONE OF THE, UH PRIVATELY OWNED FITNESS CENTERS AND THEN ALSO LIKE THE THINGS THAT YOU LIKE THE LITTLE MONETARY THINGS YOU MAKE. UH YOU MAKE, UH, ANCILLARY MONEY ON, UH, LIKE THE, UH, CABANAS $35 IS IT'S IS TOO SMALL. IT'S TOO CHEAP TO ME. I JUST I USE IT MYSELF WITH MY FAMILY, AND I'M JUST LIKE IT'S A STEAL. IT'S A IT'S A, ESPECIALLY IN THE SUMMER TIME. YOU KNOW, I WOULD. I MEAN, I WOULD LOOK AT INCREASING RATES ON SOME OF THOSE THINGS TOO. I MEAN, I'M NOT TRYING TO LIKE YOU SAY PRICE OUR OWN CITIZENS OUT, BUT AT LEAST BE, YOU KNOW. IT IS A BENEFIT, AND IT IS A SMALL INCREASE WOULD NOT, I DON'T THINK WOULD HURT ESPECIALLY IF THEY KNOW WHAT THEY'RE GETTING. THEY'RE GETTING A, YOU KNOW, A PLUS A CLASS FACILITY. 15% THAT'S 3% A YEAR OVER THE LAST FIVE YEARS. THAT'S NOTHING SO 15% BUT THERE IS NOT A 40% DISCREPANCY BETWEEN A RESIDENT AND A NON-RESIDENT. AND I THINK I WANT TO. SO I THINK I WOULD LIKE TO LOOK AT THAT NUMBER AGAIN AS WELL. AND LET'S SEE IF MAYBE INCREASING THE NON-RESIDENT COMPONENTS. THE NON RESIDENTS TO ME IS NOT PAYING ENOUGH. DOES NOT NEED TO FALL ON THE BACKS OF THE TAXPAYERS OF THE CITY OF MCKINNEY TO BENEFIT NON-RESIDENTS COMING TO OUR APEX WHEN HE LOOKED, I BELIEVE ON YOUR SLIDE AT THE FRISCO NON-RESIDENT FEE, THE FAMILY MEMBERSHIP WAS A SIGN WAS SIGNIFICANTLY HIGHER THAN UH, WHAT WE'VE GOT HERE, SO NON-RESIDENT FAMILY, UM FRISCO. THEIR MONTHLY IS $70 A MONTH.
OURS IS CURRENTLY $81 A MONTH FOR A FAMILY. UM, A 15% INCREASE WOULD TAKE US TO $93. I THINK WHAT HE IS SAYING IS, UM MONTHLY . I BELIEVE IT IS THE DIFFERENTIAL BETWEEN THE NON-RESIDENT ALL THE DIFFERENCE BETWEEN 50% IT LOOKS LIKE FOR FAMILY ANNUAL, FOR EXAMPLE, FOR FRISCO ATHLETICS CENTER AT $700 OR 1000 50. THAT'S A 50% WHAT CONSENSUS IS 15% FOR RESIDENTIAL BUT NON-RESIDENTIAL GO UP. I REALLY I'D SAY GO UP 20 25% BUT I DON'T KNOW WHAT THE REST OF THE COUNCIL THINKS. BUT I. I JUST DON'T THINK WE OUGHT TO BE IN THE BUSINESS OF SUBSIDIZING THEM. WE'RE GROWING CITY. WE'RE GETTING MORE AND MORE FAMILIES. WE'VE GOT A CAPITAL IMPROVEMENTS, HOPEFULLY A BOND ISSUE THAT'S GONNA HELP INCREASE SUPPLY ON THIS THING, BUT THAT'S CERTAINLY NOT A GIVEN. AND, UH UH, YOU KNOW, I KNOW MARY. YOU SAID SOMETHING ABOUT ATTRITION.
I RESPECT THAT. BUT GIVEN THAT WE ARE GROWING CITY, I HAVE A FEELING THAT FAMILIES WILL COME.
REGARDLESS, I JUST WANT TO KNOW IF CAN AFFORD IT SO BUT I, BUT I RESPECT THE POINT THAT I THINK THAT WE'VE GOT WHAT WE KNOW OR FEEL PRETTY CONFIDENT THAT WE HAVE GOT AN INCREASING POPULATION OF SOME DEMAND FOR THIS THING, BUT WE DO NOT HAVE AN INCREASING SUPPLY ANYTIME SOON, AND IF I COULD MAKE IT LESS COMFORTABLE FOR NON RESIDENTS, FAMILIES TO BE MEMBERS HERE AND LEAVE THOSE SPOTS OPEN FOR RESIDENTS TO ME. THAT IS A GOOD THING. I WOULD PROPOSE 15 RESIDENTS IN 25 ON NON-RESIDENTS, OK. I WOULD AGREE WITH ON NON RESIDENT YOU KNOW, RIGHT NOW THEY'RE AT 19% GO TO 40 45% I WOULD GO FOR THAT I'D GO FOR 40. OK, WE CAN DEFINITELY DO THAT THIS PAST YEAR. WE DID INCREASE OUR DAY PASS RATES FOR NON-RESIDENTS WE, UM LAST SUMMER BECAUSE WE WERE, UM, GETTING SO BUSY. WE WERE OVER 6000 HOUSEHOLDS AND WE WERE GETTING COMPLAINTS THAT IT'S TOO BUSY. SO WHAT WE ENDED UP DOING IS NOT ALLOWING NON-RESIDENTS TO PURCHASE DAY PASSES, UM, UNLESS THEY WERE ACCOMPANIED BY A RESIDENT, AND THAT KIND OF HELPED WITH, UM YOU KNOW THE CROWD CONTROL DURING THE SUMMER MONTHS, SO IT MAKES SENSE TO MHM. TO DO WHAT YOU'RE ASKING. WHAT IS THE, UM A DAY PASS RATE IS $15 FOR AN ADULT AND THE NON-RESIDENT RATE IS I BELIEVE IT'S $25 FOR AN ADULT. WE HAVE A FAMILY DAY PASS RATE. IT'S $35 FOR RESIDENTS. IT'S $50 FOR NON-RESIDENTS. ARE YOU CONSIDERING INCREASING THOSE RATES AS WELL? WE INCREASE THOSE AT THE BEGINNING OF LAST YEAR, AND WE CAN CERTAINLY LOOK AT
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INCREASING ESPECIALLY THE NON-RESIDENT DAY PASS RATES AS WE'RE DOING TALKING ABOUT AT LEAST 40% SO WE CAN HAVE THE SUPPORT OF COUNCIL TO DO WHAT YOU THINK IS NEEDED. YOU DO? THANK YOU VERY MUCH THAT ELEVATOR. THANK YOU. THANK YOU. UM ANSWER. THE LIAISON UPDATES ARE GENERALLY THOSE AT REGULAR MEETINGS. OK WITH THAT. WE WILL MOVE INTO EXECUTIVE SESSION IN[EXECUTIVE SESSION]
ACCORDANCE WITH TEXAS GOVERNMENT CODE SECTION 55 107 1 CONSULTATIONS WITH THE ATTORNEY, MANY WORK SESSION SPECIAL SESSION OR REGULAR SESSION, GEN ITEM REQUIRING CONFIDENTIAL ATTORNEY CLIENT ADVICE NECESSITATED BY THE DELIBERATION OR DISCUSSION OF SAID ITEMS. SETTLEMENT AGREEMENT BY BETWEEN MORE TEXAS MUNICIPAL WATER DISTRICT AND ITS MEMBER CITY STATED EFFECT OF OCTOBER 29 2020 SECTION 505 107 1 PENDING OR CONTEMPLATED LITIGATION MASTER SERVICES AGREEMENT BINDING BETWEEN CITY AND MCKINNEY, TEXAS AND SIERRA CEDAR LLC DATED JANUARY 25TH 2021 SECTION 551 87 DELIBERATIONS REGARDING ECONOMIC DEVELOPMENT MATTERS. PROJECT HEMISPHERES PROJECT VIBES WILL BE ACTION POTENTIALLY YEP.* This transcript was compiled from uncorrected Closed Captioning.