SOA Amenities Assessment Report Hansford Economic Consulting Freshtracks Consulting July 22, 2015 1

Where we are today

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Amenities Assessment Methodology

Data Analysis

Demographics Current Use Growth rates

Market Research

Comparable Communities: Types of amenities Uses Operations Planning Processes Inspirational ideas

Impacting Trends

National recreation trends SOA surveys City of Reno plans Lifestyle trends Aquatic + tennis trends

Findings & Recommendations

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Somersett Today

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Growth in Somersett • Residential units paid park fees Source: City of Reno

0

100

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600

700

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20145

Somersett Demographics Number Percentage

Housing Units 1,621

Occupied 1,423 88%By Owner 1,203 85%By Renter 220 15%

Vacant 198 12%Vacant Units used Seasonally 95 48%

Houses with Families 1,073 66%

Houses with Persons 65 Years+ 500 31%

Persons 3,375Persons under Age 20 712 21%Persons 20-54 1,187 35%Persons 55+ 1,476 44%

Hispanic Persons 184 5%

Persons per Occupied Unit 2.37

Source: 2010 U.S. Census Tract 23.01. census

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Population Projection Assumptions

Residential Unit TypePersons per HH Low High

[1] [2]per 2010 Census

Somersett - All Unit Types 2.52 3.22 2.85 3.20

Sierra Canyon - Del WebbSierra Canyon (non-transition) 1.70 1.28 1.45 1.75Transition Lots 1.90 n.a. 1.75 1.95

Source: HEC. assumps

[1] The average for Somersett in 2010 (per Census) was 2.37 per occupied unit.

The persons per household by Development Area was calculated as:persons per

hh weighting * Wtd. Avg

Sierra Canyon 1.70 18% 0.30

Somersett 2.52 82% 2.07

Average persons per household 2.37

* At year-end 2009, per SOA records, 18% of all members were Sierra Canyon residents.

[2] Per SOA records for 2014. Members Lots paying Dues

SOA 5,165 1,602

Sierra Canyon 1,265 991

Master Somersett 6,430 2,593

Members per Dues-Paying Lot

Persons At One Time Range

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Amenities Today

The Club at Town Center • Sports court/indoor

basketball/stage • Aerobics studio • Cardio weight room • Great room and loft • Game and teen rooms • Kids Corner • Massage • Tennis Courts (2) • Pools (2)

• 3-lane lap pool • Family pool and slide/water park

area • 2 spas/hot tubs

Other

• Canyon 9 golf course (open to public)

• 27 miles of hiking + biking trails

• 18-Hole Golf—separate membership required

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Fitness Class Offerings & Participation

Item2009 2010 2011 2012 2013 2014

Number of Fitness Offerings [1] 11 12 16 12 19 24

Monthly Average Persons per Class 6.8 6.0 6.9 7.9 6.8 6.3

Estimated Fitness Participants 898 864 1,325 1,141 1,550 1,814

Source: SOA. fit

[1] Number of classes such as Zumba, Yoga, Step, and Ballroom dancing.

Calendar Year

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Fitness Use

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800

900

2009 2010 2011 2012 2013 2014

Estm

ated

Ann

ual P

artic

ipan

ts

Yoga Aerobic Fitness

Water Fitness Adult Tennis

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Amenities Needs and Wants

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2013 SOA Survey Highlights • 515 responses Do not eliminate any existing amenities. Approximately 60% willing to increase assessment for additional amenities • Top 4 reasons people buy in Somersett:

1) Environment 2) Amenities 3) Lifestyle 4) Homes/Price

• Top Amenity Improvements Desired • Aquatics • Cardio • Trail System 12

Historical Amenity Visitation

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000

2008

2009

2010

2011

2012

2013

2014

Canyon 9 Visits

Pool Visits

Clubhouse Visits

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Projected Increase in Lots Using Amenities

LotUse Total Increase % Change

Estimated Units Using Amenities January 2015 Somersett [1] 1,500Sierra Canyon [2] 930Somersett plus Sierra Canyon 2,430

Estimated Units Using Amenities at BuildoutSomersett 2,250 750 50%Sierra Canyon 1,205 275 30%Somersett plus Sierra Canyon 3,455 1,025 42%

Source: Somersett Owners Association and HEC. potential

[1] Calculated as 100% of homes plus one-third (33%) of lots without homes paying assessments.

[2] Calculated as 100% of homes.

Lots/Units

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Projected Increase in Town Center and Pool Visits • Increase 24% to 37% from end of 2014 to buildout

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20,000

40,000

60,000

80,000

100,000

120,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Clubhouse Visits

Pool Visits

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Trends • Use of the Club increased sharply last 2 years • Increased use primarily yoga and other fitness classes, not in

water fitness or tennis fitness • Cardio room use unknown (no records of number of users) • Pool use level past 3 years but more member visits and less

guest visits • Projected use of Club and Pools increases 24-39% in next 5

years • Canyon 9 use projected to increase 27-45% in next 5 years

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Trend Implications • Canyon 9 not close to capacity; could manage increase in next

5 years with reservations, closing to the public, other amenity options in annexed areas, other measures

• Need for future pool expansion, potentially for covered pool area

• Need for future fitness space – cardio/aerobic and strength • Current space will not accommodate growth in user numbers,

even with programming changes • Programming changes can lengthen timeframe for needed

expansions

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Market Research Key Lessons

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Tahoe Donner Operations + Long Range Planning • Strong operations staff + committee to successful long-range planning

efforts • Collecting user data critical to use management + planning • Creating structure for feedback + decision making critical to moving forward

(Committees + subcommittee) • Creating long-term general plan with financing plan, backed by committee

structure key to homeowner buy-in • Strategic Plan developed by staff with input from Board

Finances • Capital budget planning key to sustainability • Trails maintenance is expensive –budget for it • Avoid one-time special assessment fees----hard to build homeowner

support • Less than 1% delinquency rates • Staff #1 expense, new site requires full, new set of staff. More cost effective

to expand service within existing site

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Key Lessons…Tahoe Donner…continued Amenities • Fitness Center User management

• Customer management system used at all sites to measure + manage use –creates culture

• Always 2 staff at front desk to manage flow • Wait lists for machines in gym • Current plans to expand Trout Creek Recreation Center (12

priorities developed by staff in concert with committee) • Shifting like use to cluster areas (kids, fitness, pool, classes)

• Tennis Club • 11 courts/located near but next to Club House area • Separate non-profit operates club, shop, programs • Own social cluster, don’t need direct access to other amenities • Part of HOA: $20/$40 per year to join Tennis Club

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Lessons – Arrow Creek • Key-card system critical to managing fees • No issues with use traffic with pools or fitness room • Ownership of own key amenities critical. Lack of control

an issue. (i.e. golf course) • Golf course key to property value • Strong committee and many committees build

homeowner engagement in decision-making • Keep things simple with fee structure • Large acreage for Residents Club allows for future

expansion • Hire a strong operations person

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Lessons – Whitney Oaks • Open Space Management Plan important to

maintain their character (and home values) • Goats for grazing

• Two locations for pools to spread out use impacts

• Strong link to local community parks and trails outside of HOA

• Joint Board meetings quarterly with sub-community to build coordination + relationships 22

Lessons - SunRiver • A big aquatic center is popular with visitors and homeowners • SHARC owned and run by HOA to keep control • Private business (Physical Therapy) offers services to members

+ generates revenue for HOA • Public use fees ($20 per day) generate revenue that pays for

maintenance of pool • Member-only use strategies help manage crowds • Investment in large public/membership pool area very popular • Constant homeowner feedback critical to building support

(annual survey)

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Industry Trends

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Recreation Trends • Importance of amenities shows in property values;

important to have well thought out amenity packages. • Lifestyle and public health connection. Communities with

amenities of increasing appeal. • Top preferences for recreation: swimming, cardio fitness,

biking, trails

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Aquatics Trends • Away from lap swimming to water park, multi-activity

experience • Multiple entry points • Multiple activities (fitness classes to toddler classes) • A place to visit rather than just a place to swim • Promotion of well-being; low-impact training

• More surrounding leisure offerings – deck space for

lounging, bar/café, cabanas, hot tubs

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Tennis Trends • Volume of tennis played influenced by players connecting with

one another

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Trails and Open Space Trends • Trails and open space connects communities

• Trails encourage stewardship of surrounding landscapes

• Trails experiences being more carefully thought-out – low

maintenance or higher maintenance with benches, picnic tables

• Everyone should be able to access a trail within a 5-minute walk from their door

• Open spaces and trails preserve integrity of a community; they speak to a place people want to call their home

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Local Influences • Reno Open Space and Greenways Plan – Peavine Peak is a

priority

• Pools are an amenity deficit in Reno

• Sierra Vista Park – opportunity to expand the amenity experience

• Truckee River – just below Somersett; maybe potential for pocket park to enhance amenity offerings

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Recommendations Amenities Planning

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5 Key Concepts Primary Objective --- “It’s Great to Be Home”

• Cluster user groups to increase interaction among members

with similar amenities preferences, maximize use of space, and minimize operations costs;

• Keep a recreation “campus” at the current Clubhouse;

• Build on the strengths of SOA amenities currently in place;

• Expand definition of amenities to include environment, open space and trails; and

• Enhance operational and organizational excellence to ensure long-term success of the SOA in delivering amenities.

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Short-Term - Planning • SOA Board and SP Committee create an Amenities Action Plan with

short and long term goals • Use the Amenities Assessment Report as starting point, determine

path forward / steps • Look for new revenue-generating avenues or strengthening existing;

include the golf course (weddings, other)

• Form a Long-Range Amenities Planning Committee • Could be part of the Strategic Planning Committee

• Engage SOA in a more robust strategic planning effort • Coherent planning between different committees, unified message

to members

• Engage with the City of Reno in an ongoing and regular basis • Liaison(s) ensure input on property surrounding Somersett that fits

into the amenities plan 32

Short-Term – Planning (cont’d) • Acquire property opposite the City of Reno pocket park at

Town Center • Link the park with Town Center. Could move Canyon 9 facilities

here, winter use could include snowshoe rentals, expanded summer facilities could include Segway rentals to golf course, tennis center, other facilities – opportunity for generating SOA revenue

• Engage a Land Use planner for new amenity facilities layout

• At newly owned parcels - Conceptual renderings, building size, space layout for moved / expanded programs

• Hire an Aquatic Design Consultant

• Features, layout, cost estimates of different designs

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Short-Term – Communications & Engagement • Conduct an Amenities Use Survey

• Specific to pool center, tennis and day care / kids programs for community support of amenity changes

• Communicate and Engage Membership in planning efforts

• Community meetings to gather feedback, change plans as needed

• Strengthen SOA communication tools • Friendly, reflective of membership values, show case trails and

other amenity maps, include SOA governance and other documents for review, expand profile of Board and committee members 34

Short-Term - Operations • Implement a Key Card system at amenity facilities

• Track usage better so working off solid use data, also enhances security and member management

• Hire a Facilities / Operations Manager

• For planning and execution of capital projects, directly accountable to the Board

• Check Cardio Machine spacing and implement wait list

• Check for safety, wait list would enable more use during heavy usage periods

• Add aerobics fitness classes using gym space

• For classes with minimal equipment needs

• Re-organize Town Center staffing • More focus on user needs, lead to more efficient uses of space 35

Long-Term - Planning • Create an open Space and Trails Plan

• Large part of lifestyle that Somersett residents have chosen, should be considered an amenity to be maintained and preserved

• Consider private venture to provide certain recreation needs

• If certain amenity needs cannot be provided with SOA properties, solicit private ventures in commercial buildings to keep amenity needs fulfilled in the recreation campus

• Consider potential for amenities on SOA property outside of

Somersett • If community members express interest, investigate property

purchases outside of Somersett (such as to provide private river access) 36

Long-Term - Operations • Move the Kids Program to new location next to the clubhouse

• Cluster activity could be moved

• Use the vacated kids program area for expanded cardio fitness

• Move tennis facilities and expand the program • Another cluster activity that could be moved and program

expanded. Could create a separate Tennis Club.

• Expand the Aquatic Center using the vacated tennis area • Current space constrained, allows space for linked multi-use

aquatic facility, particularly if the Canyon 9 greeting area is moved to parcel opposite City pocket park.

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