Discussion:
The City Council approved a Community Center membership fee increase as part of the 2017 Fee Schedule. The fee increase was effective on March 15th. At the time the City Council approved the fees, they viewed the initial increase as an introductory rate and directed staff to further evaluate the fees and determine a rate that would best reflect a fully completed Community Center.
Staff reviewed the process of how the March 15th rates came to be and further evaluated the fees of Community Centers comparable to Shakopee's. The March 15th increase was a 50% increase for family memberships and a 40% increase for all other memberships. The proforma completed during the feasibility study of the project had suggested a 70% increase for family and 25% increase for all other memberships in the first year.
The Community Center will be completed at the end of June and that is when all members, current and new, will first be able to experience the added amenities. The direction from the City Council when the fees were first being evaluated was to stay affordable yet competitive. The current rates are still affordable and competitive and they will help to build a strong membership base. It is important however to have the membership fees reflect the amenities that the community is getting for their fees. Staff is therefore proposing rates that are more competitive with our surrounding comparable Community Centers. The proposed rates reflect the following increases over the current rates: 22% for family, 17% for adult, 30% for youth/senior/military and 50% for adult +1. The rates are on Attachment A and staff will be reviewing the rates specifically.
January vs July
Staff would like to recommend that the fees be increased again on January 1, 2018 instead of in July of this year for the following reasons:
- Current rate is an introductory rate meant to help build the membership base and from March 15-July no new amenities are available for these members.
- Rates should build trust in our members. Minimal increases were made in the past because there were no new amenities or services to offer. The completed Community Center will get the city caught up on amenities and we need to gradually increase our fees vs. outpricing ourselves to quickly.
- Community Center operations will changes and time is needed to give staff the ability to get used to the changes, work out hiccups, build staffing and manage operations to provide the best quality service possible.
- Fee changes require additional staff time to manage and track multiple membership packages and multiple monthly rate for members.
- Perception of the community.
Pool Membership
The City Council has also asked to see a separate membership fee for use of the pool. A membership fee is proposed however staff does not recommend having specific amenity memberships. If a pool membership is offered then there will be a request for a fitness only membership or a gym only membership, etc. Too many membership packages will lead to confusion, customer service issues with more room for errors and additional staff needed to monitor the facility to ensure people are only using the amenities they have paid for.