From The Woodlands Swim Team (TWST) & Woodlands Masters...

Proposal for an Aquatic Partnership With

The Woodlands Township

From The Woodlands Swim Team (TWST) &

Woodlands Masters Swim Team (WMST)

February, 2015

Proposed Terms & Operating Agreement February, 2015

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TABLE OF CONTENTS Introduction ............................................................................................................................................................................ 3

Background ............................................................................................................................................................................. 3

TWST – The vision of George Mitchell ................................................................................................................................ 3

WMST .................................................................................................................................................................................. 4

CISD Natatorium Fills Void .................................................................................................................................................. 5

Managing Incredible Growth .............................................................................................................................................. 5

Recognizing an Opportunity with Myrtha Pools and USA Swimming ................................................................................. 5

Location of the Proposed Pool ............................................................................................................................................ 6

Far-Reaching Benefits ......................................................................................................................................................... 6

Economic Impact ................................................................................................................................................................. 6

Structure ................................................................................................................................................................................. 7

General Terms of the Partnership .......................................................................................................................................... 7

Exhibit A – Trials Pool Package ............................................................................................................................................ 8

Project Capital Costs And Timeline ......................................................................................................................................... 9

Exhibit B - Capital Cost Summary ........................................................................................................................................ 9

Exhibit C – Project Timeline .............................................................................................................................................. 10

Pool Usage............................................................................................................................................................................. 10

Estimated Operating Costs and TWST + WMST Revenue Contribution ............................................................................... 11

Exhibit D – Annual Operating Costs .................................................................................................................................. 11

Exhibit E – Revenue Input Variables ................................................................................................................................. 12

Exhibit F – Projected Use Revenues .................................................................................................................................. 13

Conclusion ............................................................................................................................................................................. 13

Appendix I: Schematic Renderings and Concept Drawings .................................................................................................. 14

Appendix II: Capital Costs Details .......................................................................................................................................... 19

Appendix III: Scheduled Usage Plan ...................................................................................................................................... 22


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INTRODUCTION he Woodlands Swim Team (TWST) and the Woodlands Masters Swim Team (WMST) are pleased to present the following proposal to The Woodlands Township (Township) to make The Woodlands home to a world-class aquatics facility, providing many far-reaching community benefits. The need for a new facility was identified in

Chapter 3 of the Parks and Recreation Needs Assessment Survey - July 21, 2011 (click link). This proposal is aligned with Alternative Two, Option B as recommended in Chapter 3 (pages 89-90). Of the 2,019 survey respondents, more than 58% were “Somewhat Supportive” to “Very Supportive” of developing a competitive aquatics facility. Both TWST and WMST continue to grow since the survey, but are currently restricted from further growth in their current locations.

TWST and WMST have made a commitment to purchase the 2016 Olympics Trials Competition Pool in the summer of 2016 and relocate it to The Woodlands for permanent installation. This facility would fulfill the needs of the growing community, meeting the demands for aquatic training and competition while being operated by the Township’s Parks and Recreation Department.

After this proposal is accepted and approved by the Township, TWST and WMST would work closely with staff to develop and implement the details to complete the project. A proposed outline of Terms is included in this proposal.

This document was prepared by TWST and WMST with assistance from the Parks and Recreation Staff as well as industry consultants. While care has been taken in the preparation of this proposal, TWST and WMST do not represent or warrant that the contents of this document are accurate or complete, as further refinements and changes to this proposal may be made during implementation.

BACKGROUND TWST – The vision of George Mitchell The Woodlands Swim Team was started in 1975 as part of George Mitchell’s original vision for The Woodlands. He

personally funded its founding. TWST is perennially in the top 20 of the more than 2,800 swim clubs that belong to USA Swimming. Now in its 38th year as a non-profit 501.c.3 corporation, it has over 400 swimmers from 210 families.

The Team’s mission is threefold:

1. Promote the benefits of swimming for a lifetime – healthy lifestyle and strong mind 2. Strengthen our community by developing individual character and volunteerism 3. Develop world class athletes and world class leaders

The results speak for themselves. The Team has a historic 100

T

Humble Beginnings at the former Woodlands Athletic Center

http://www.thewoodlandstownship-tx.gov/index.aspx?NID=25


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percent high school graduation rate and a grade point average of 3.85 out of 4.0. Ten million dollars in swimming scholarships to 72 universities have been awarded to TWST swimmers. TWST swimmers and their families regularly participate in local and region volunteer activities including helping at animal shelters, supporting the Montgomery County Food Bank, entertaining the elderly, donating time to women’s shelters, adopting families for Christmas, sending soccer balls to Afghanistan and Iraq to connect with local children, and more.

Winning is a tradition with dozens of championships at the local and national level. Many swimmers participate in Olympic Trials and one even participated in the Olympics.

TWST’s goal is to be able to further grow the program, expand its role and influence in the community and further nurture the TWST culture honed over many years. This goal is being hampered by growing constraints on pool time and facilities. It explains why TWST has joined with WMST to add a new training facility in The Woodlands.

WMST The Woodlands Masters Swimming had its beginnings in the late 1970’s, when several local competitive swimmers felt the time had come to form a local United States Masters Swim (USMS) team. With support from a growing number of local swimmers, Tom Boak spearheaded a group effort that eventually led to the official formation of the Woodlands Masters Swim Team in 1987. The new team worked out a financial arrangement with the WAC to formally use its facilities for coached swimming and swim meets. Membership steadily grew to over 350 swimmers by 2007.

Though the WMST had not yet been officially formed, Mr. Boak proved that the WAC could attract National USMS swim events by leading an effort to host its first national event in 1982. With WMST officially incorporated as a non-profit Section 501.c.3 corporation, the WMST officially sponsored USMS National events in 1987, 1990, and 2007, just before the WAC was permanently closed. The last USMS Long Course Nationals event, attended by 1,100 swimmers (many from outside The Woodlands) was performed as a joint effort with TWST, further cementing the growing relationship between these two aquatic teams.

As an outgrowth of its popularity, WMST also initiated a coached swimming practice at the Shadowbend YMCA.

Currently, WMST struggles to maintain its existing workouts at the NAT and has had to cancel practices because of CISD preemptions, holiday closures, or maintenance. Additional practices were put in place at the older, less conveniently located Northampton pool in Spring to fill time slots that were not available at the Natatorium.

Founded in 1987, the Woodlands Master Swim Team hosted USMS Nationals in the summer of 2007 at the WAC.


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CISD Natatorium Fills Void From 1975 until 2008, the former Woodlands Athletic Center (WAC) was the home for TWST, WMST, Woodlands Marlins, and The W oodlands High School Swim & Dive Teams. It provided an excellent venue for training, hosting regional and national meets, and provided a family-friendly environment for the teams to grow and socialize. Fortunately, the Conroe Independent School District (CISD), realized there would be a void with the closing of the WAC. CISD passed a bond issue, resulting in the development of the CISD Natatorium (NAT) in conjunction with Woodforest Bank Stadium.

Managing Incredible Growth The NAT has served most of the needs of the aquatics community since 2008. However, as the community has continued to expand, all of the programs that use the NAT have also grown. Now, with five high schools (soon to be six) and all of the community organizations (i.e., TWST, WMST, Woodlands Diving, Woodlands Marlins and Woodlands Water Polo) struggling to find additional water to meet their needs, the time has come to make some strategic moves to deal with major increases in growth and demand for a 50-meter aquatics facility.

Until the beginning of 2014, TWST and WMST have dealt with growth by going into the surrounding communities and contracting with community pools. TWST has been successful in partnering with the Township to add pool heaters into three existing outdoor pools. However, this has been a short-term solution to deal with the growth issues since those lanes are not available during the summer months. Subsequently, TWST and WMST formed a joint committee to find a solution to their mutual problems of accommodating growth demands.

Recognizing an Opportunity with Myrtha Pools and USA Swimming An approach was made to Myrtha Pools and USA Swimming about purchasing the 2016 Olympic Trials Competition pool. On June 30, 2014 TWST and WMST entered into an Option Agreement with Myrtha and USA Swimming to purchase the pool, by placing a $200,000 deposit. TWST and WMST must exercise this purchase option by the end of April 2015.

The competition pool is 50 meters long, 26 meters (10 competitive lanes) wide and 2.5 meters deep. Purchase of the pool includes state-of-the-art filtration equipment, and starting blocks with the new backstroke wedge. The pool will be built by A&T Europe and Myrtha Pools


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USA using innovative panel technology. This Trials Package represents a 20% savings of $300,000 over regular component pricing.

Location of the Proposed Pool The committee investigated multiple park locations including Falconwing, Bear Branch and Ridgewood. It was determined that Bear Branch Park is, by far, the most suitable location for the pool. This site is excellent because of its central location in The Woodlands, adequate space, existing infrastructure, and lower capital cost requirements compared to other locations.

Far-Reaching Benefits While TWST’s and WMST’s primary focus is to use the pool for training and fitness, there are a number of additional benefits to the community for bringing a facility of this quality back to The Woodlands. In combination with the adjacent community pool, we anticipate the Township will provide blocks of year-round time when the pool will be available to residents of The Woodlands for fitness lap swimming, triathlete training, and other aquatics programs. In addition, TWST will offer comprehensive “Learn to Swim” lesson programs for all ages. WMST will focus on coached, adult-swimming workouts, and offer the U.S. Masters Swimming program “Swimming Saves Lives,” a drowning-prevention program that has gained national attention.

There will also be opportunities for other aquatic organizations to benefit from this installation by renting available lane space. For example, a Summer League team might use the pool for its dual and championship meets, and The Woodlands Township Parks and Recreation could run some of its structured programs or camps in the pool. There are other groups that have the potential to provide additional revenue, which would offset the costs of operating the pool.

Economic Impact This new facility with an outdoor 50m state-of-the-art pool would provide an excellent venue for many kinds of swim events. Local summer league, club age-group, as well as Masters swim meets could be accommodated during certain times of the year. Some of these meets can have a significant economic impact on the surrounding community. As an example, the Speedo Champion Series, Long Course Sectional Meet has been hosted by TWST for the last 5 years with an economic impact of up to $ 442,000.

Start Date # of days

# of swimmers

Rental Paid

Team Profit Hotel Rental

Car Restaurant Economic Impact

7/28/2010 4 716 $10,966 $56,960 $166,854 $21,600 $151,380 $339,834

7/26/2011 5 674 $13,083 $44,096 $206,584 $36,900 $187,425 $430,909

7/31/2012 5 718 $13,158 $49,335 $215,750 $32,400 $194,175 $442,325

7/30/2013 5 572 $18,925 $26,839 $184,212 $31,050 $160,650 $375,912

7/22/2014 5 661 $19,631 $25,198 $183,250 $33,300 $164,925 $381,475


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STRUCTURE TWST and WMST are both Section 501.c.3 non-profit corporations registered in Texas. Once TWST and WMST exercise their purchase option, a Purchase Agreement will be negotiated with Myrtha Pools USA which finalizes the details of the transaction. The pool and equipment package will then be donated to the Township. First, TWST and WMST need the Township to approve the concept and proposed budget. Then the details of the partnership agreement can be worked out in a formal agreement.

GENERAL TERMS OF THE PARTNERSHIP Parties The Woodlands Swim Team (TWST) Woodlands Masters Swim Team (WMST) The Woodlands Township (Township)

Location Bear Branch Park (the Park) 5200 Research Forest Drive The Woodlands, TX 77381

Improvements TWST and WMST have the joint option to purchase the 2016 US Olympic Trials Competition Pool and accessories which are described in Exhibit A. The closing of the transaction should take place prior to the Trials which are scheduled for June 26-July 3, 2016. Upon completion, the pool will be dismantled and shipped to The Woodlands. Prior to arrival, the site will be prepared for pool installation. The Woodlands Township will contract to install the new pool at Bear Branch Park and also complete the improvements designated in the Capital Budget which is attached as Exhibit B.

Warranties All remaining warranties on the pool (both structural and waterproof), filtration equipment and other accessories shall be transferred to the Township. The pool itself is under warranty for 25 years.

Preferred Use TWST and WMST will have priority access during times mutually agreed upon by the Parties for the purposes of swim practice and training, learn to swim programs, teaching swim lessons, and such other uses approved by The Township in advance, in writing. Scheduling meetings will be held monthly to adjust any modifications to the scheduled pool usage plan (Appendix III).

Initial Term Fifteen years with three five year options for renewal.

Insurance Maintained by TWST (through U.S.A. Swimming) and WMST (through U.S. Masters Swimming) Discounts TWST and WMST will be entitled to recover their capital investment through reduced usage rates per

lane hour. Once the investment has been fully recovered, then TWST and WMST will be billed for lane use based on current rates established by Parks and Recreation. Rates may increase during renewal periods no greater than 3% per term.

Utilities and The Township will cover all utilities, chemicals, supplies, janitorial, and maintenance costs. Maintenance


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Exhibit A – Trials Pool Package


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PROJECT CAPITAL COSTS AND TIMELINE TWST and WMST have prepared the following summarized estimates of project capital costs. The design concept was a collaboration of TWST and WMST with feedback from various resources. The concept ties into the existing park aesthetic with similar materials and construction techniques. Schematic concept drawings and renderings are available in Appendix I.

Some existing park amenities would require relocation such as the outdoor basketball courts, sand volleyball court, swing sets, and metal storage buildings. The proposed design allows for all of these amenities to be relocated on site. An added benefit would be a new covered basketball court -which would serve as additional multi-purpose space for various programs and activities. The support buildings are composed of two main structures. The primary structure contains Township administrative space, locker rooms, restrooms, showers as well as support and storage space for staff. The secondary contains electrical and pool equipment as well as chemical storage. Equipment storage rooms are also conveniently located with direct access to the pool deck.

Exhibit B - Capital Cost Summary

Construction Costs Amount

Site Preparation

$165,000 Support Building

$930,000

Site Improvements $763,400 Myrtha Trials Pool

Package $1,682,700 Turn-key Pool Installation $900,000

Subtotal

$4,441,100

Contingency (5%) $222,100

Total Construction $4,663,200

Contractor Fees (10%)

$466,300 Architectural & Engineering Fees (11%) $512,900 Development Fees $10,000

Total Project Cost $5,652,400 *excludes $600K improvements to existing Pool

TWST & WMST Equity Contribution $1,682,700

Balance to be Funded by Township $3,969,700

For additional detail on Proposed Capital Costs, see Appendix II.


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64%

33%

3%

Proposed Annual Usage

TownshipTWSTWMST

Exhibit C – Project Timeline

POOL USAGE

Pool usage by TWST and WMST is estimated during the calendar year 2017 taking into account holidays and school breaks. For detailed analysis of pool usage, see Appendix III.

Proposed Hours of Operation:

Mon-Fri 5:30 AM – 7:30 PM

Sat & Sun 7:00 AM – 7:30 PM

Period Highlight: 8 Plan Actual % Complete Actual (beyond plan) % Complete (beyond plan)

MILESTONES 2014 2015 DEPOSIT 2016 TRIALS 2017

MONTH 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Myrtha Option Agreement

Trials Pool Deposit

Partnership Investigation

Fundraising

Design Concept

Partner with Township

Project Approval

Project Design

Deposit Non-refundable

Project Engineering

Bidding

Construction

Trials Competition

Commissioning

Project Completion


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ESTIMATED OPERATING COSTS AND TWST + WMST REVENUE

CONTRIBUTION Parks and Recreation Staff have estimated the annual operating and maintenance costs, including staffing, janitorial, supplies and chemicals, as shown in Exhibit D. Bottom line incremental operating costs are estimated to be about $381,000 per year and includes costs associated with usage by TWST, WMST, the Township programs and other aquatic activities. While lifeguards may be required for public use, neither TWST nor WMST requires life guards during their use of the pool as defined by Texas state pool codes. Costs were estimated using current consumption rates of existing facilities

Exhibit D – Annual Operating Costs

Utilities Electricity

$60,700

Gas*

$60,000 Phone/

Security

$1,100 Water/ Wastewater $32,000

Subtotal

$153,800

Maintenance/ Repairs $32,000

Pool Chemicals

$60,000

Janitorial/ Cleaning $27,500

Staffing

$103,500 Aquatics Coordinator (FT) Pool Technician (FT) Lifeguards**

Miscellaneous $4,200

TOTAL

$381,000 *Seasonal heating of lap lanes

**Excludes cost of 5 FT lifeguards


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It is proposed that TWST and WMST be given a discount from the standard lane rate of $6.50 per lane hour in order to recover their capital investment over the initial term. Once the investment has been recovered, TWST and WMST would pay standard lane rental fees. Exhibit E shows the variables used to calculate the revenue and expenses. A standard annual increase of 3 percent has been applied to both the lane rates and operating expenses over the 15 year term. Assuming the Township would program the available space at a conservative usage of 15%, the pool would still allow for additional revenue through other community aquatics and hosted events. These projections do not include growth in lane usage by either TWST or WMST.

Exhibit E – Revenue Input Variables

Term Variables

Standard Lane Rate: $ 6.50 3% annual increase

Reduced Rate for Year 1

$ 3.90 60% rate + 3% annual increase

% of TWT Hours that generate income 15%

Initial Capital Contributed (TWST+WMST) $ 1,682,720

fundraising goal

Pool Operating Expenses

$ 381,000 3%

annual increase

Lane Usage

Lane Hours

Annual Rental Potential Before Discount

Percent Lane

Utilization

TWST 32,320 $ 210,080.00 32.90%

WMST 2,713 $ 17,631.25 2.76%

Subtotal 35,033 $ 227,711.25 35.66% TWST + WMST lane hours

Township (100 % Usage of All Other

Lanes) 63,198 $ 410,783.75 64.34% Available lane hours TOTAL 98,230 $ 638,495.00 100.00%

Township (Variable Usage of All Other

Lanes) 9,480 $ 61,617.56 15% Township lane hours Variable TOTAL $ 289,328.81 50.66%


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Using the above terms and schedule, the lane rental income would cover more than 52 percent of the operating costs each year. Over 15 years, TWST and WMST would recover their initial capital investment. Regardless of how the final formula details work out, the proposed pool will greatly benefit the local aquatics community and residents.

Exhibit F – Projected Use Revenues

Net Income to Township

Year

TWST + WMST Rental Income

(1) Other Rental Income

(2)

Operational Expenses

(3)

Expenses less Income

(3-(1+2))

Operational Recovery

((1+2)/3) TWST+WMST

Discount 1 $136,627 $61,618 $381,000 $182,756 52.03% $91,085 2 $140,726 $63,466 $392,430 $188,238 52.03% $93,817 3 $144,947 $65,370 $404,203 $193,886 52.03% $96,632 4 $149,296 $67,331 $416,329 $199,702 52.03% $99,530 5 $153,775 $69,351 $428,819 $205,693 52.03% $102,516 6 $158,388 $71,432 $441,683 $211,864 52.03% $105,592 7 $163,139 $73,575 $454,934 $218,220 52.03% $108,760 8 $168,034 $75,782 $468,582 $224,766 52.03% $112,022 9 $173,075 $78,055 $482,639 $231,509 52.03% $115,383

10 $178,267 $80,397 $497,119 $238,455 52.03% $118,845 11 $183,615 $82,809 $512,032 $245,608 52.03% $122,410 12 $189,123 $85,293 $527,393 $252,977 52.03% $126,082 13 $194,797 $87,852 $543,215 $260,566 52.03% $129,865 14 $200,641 $90,487 $559,511 $268,383 52.03% $133,761 15 $206,660 $93,202 $576,297 $276,434 52.03% $137,773

Totals over 15

years $7,086,186 $3,399,057 52.03% $1,694,073

CONCLUSION his proposal presents a great opportunity for three proven organizations to sustain and enrich the growth of The Woodlands’ extraordinary aquatics community, which ranks as one of the best in the U.S.

The rewards are far-reaching across the community and into the future. TWST and WMST believe that the economics and potential additional aquatic and recreational benefits to the community justify proceeding with the proposed TWST/WMST/Township Partnership.

T


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APPENDIX I: SCHEMATIC RENDERINGS AND CONCEPT DRAWINGS This appendix presents the several schematics and concept drawings for:

1. Existing site image 2. Proposed site plan demolition 3. Proposed site plan overview 4. Floor plan and pool plan 5. Aerial view (concept drawing) 6. Three on-deck views (concept drawings)


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APPENDIX II: CAPITAL COSTS DETAILS


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APPENDIX III: SCHEDULED USAGE PLAN

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