Attachment 2 - Foster City Park and Recreation Community Center Business Operations Plan — Foster City City Council, February 17, 2026

2026
Foster City Parks and Recreation
Community Center Business Operations Plan

Community Center Business Plan
i

FOSTER CITY PARKS AND RECREATION DEPARTMENT

MISSION

TO PROVID E EXCELLENT SERVICE, EXCITING PROGRAMS, AND EXCEPTIONAL PLACES, TO ENHANCE OUR COMMUNITY’S QUALITY OF LIFE.

Foster City, California
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TABLE OF CONTENTS
CHAPTER ONE – EXECUTIVE SUMMARY ................................................................................................. 1 PURPOSE AND ROLE OF THE COMMUNITY CENTER IN THE SYSTEM ........................................... 1 PURPOSE OF THIS BUSINESS OPERATIONS PLAN ......................................................................... 2 HOW TO USE THIS PLAN ................................................................................................................ 2 REPLACEMENT OF AN AGING FACILITY ...................................................................................... 2 OPERATIONAL GOALS .................................................................................................................. 3 CITY COUNCIL AND COMMUNITY EXPECTATIONS .................................................................... 3 OPERATING MODEL OVERVIEW ................................................................................................... 3 FINANCIAL PERFORMANCE ......................................................................................................... 5 BOTTOM-LINE ASSESSMENT .......................................................................................................... 9

CHAPTER TWO
– FOSTER CITY COMMUNITY CENTER REBUILD PROJECT ............................................ 10 PROJECT BACKGROUND AND HISTORY .................................................................................... 10 PURPOSE AND VISION FOR THE NEW FACILITY ......................................................................... 10 FACILITY FLOOR PLANS .............................................................................................................. 10 FACILITY SQUARE FOOTAGE OVERVIEW ................................................................................... 12 SUMMARY ................................................................................................................................... 15

CHAPTER THREE
– COMMUNITY CENTER OPERATIONAL ASSUMPTIONS ............................................ 16 PURPOSE AND ROLE IN THE SYSTEM .......................................................................................... 16 OPERATIONAL FRAMEWORK AND ASSUMPTIONS .................................................................... 17 OPERATIONAL ASSUMPTION FRAMEWORK SUMMARY ............................................................ 21 ....................................................................... 22 PURPOSE AND ROLE WITHIN THE COMMUNITY CENTER ........................................................... 22 OPERATING INTENT ..................................................................................................................... 22 POLICY AUTHORITY .................................................................................................................... 22 OPERATIONAL AUTHORITY ......................................................................................................... 22 CONTROLLED USE AND CONFIGURATION STANDARDS ........................................................... 23 BOOKING, CONTRACTS, AND FINANCIAL CONTROLS ............................................................ 23 STAFFING AND SERVICE STANDARDS ........................................................................................ 23 FINANCIAL ROLE......................................................................................................................... 24 PUBLIC VALUE AND EQUITY CONSIDERATIONS ........................................................................ 24 BOTTOM-LINE SUMMARY ......................................................................................................... 24 ......................................................... 25 PURPOSE AND CONTEXT ............................................................................................................ 25 STRATEGIC JUSTIFICATION FOR PRIVATE OPERATIONS ............................................................ 25 FINANCIAL STRATEGY AND DEAL STRUCTURE OPTIONS ........................................................... 26 USE OF THE REQUEST FOR INTEREST (RFI) PROCESS ................................................................... 28 KEY TAKEAWAYS ......................................................................................................................... 30

CHAPTER SIX
- SPACE UTILIZATION ...................................................................................................... 31 PURPOSE AND ROLE IN FCCC OPERATIONS ............................................................................. 31 CORE SCHEDULING PHILOSOPHY.............................................................................................. 31 Community Center Business Plan
iii
FACILITY OPERATING CONTEXT ................................................................................................. 32 SPACE TYPOLOGIES AND UTILIZATION INTENT .......................................................................... 32 SCHEDULING HIERARCHY AND PRIORITY ORDER ..................................................................... 34 COORDINATION WITH PRIVATE-PUBLIC PARTNER OPERATIONS .............................................. 34 DAILY, WEEKLY, AND SEASONAL SCHEDULING PATTERNS ....................................................... 35 UTILIZATION TARGETS AND PERFORMANCE MONITORING ...................................................... 35 SPACE SCHEDULING - EXAMPLE................................................................................................ 36 OPERATIONAL COORDINATION AND IMPLEMENTATION....................................................... 39 SUMMARY ................................................................................................................................. 39

CHAPTER SEVEN
- STAFFING FRAMEWORK ......................................................................................... 40 STAFFING ASSESSMENT CONTEXT AND PURPOSE ..................................................................... 40 STAFFING ADEQUACY AND RECOMMENDATIONS .................................................................. 40 STAFFING SUMMARY .................................................................................................................. 42

CHAPTER EIGHT
- FINANCIAL PLAN ..................................................................................................... 43 FINANCIAL ASSUMPTIONS ......................................................................................................... 43 LAGOON EVENT HALL FINANCIAL ASSUMPTIONS AND RISK SENSITIVITY ............................... 44 FORMER RECREATION CENTER ACTUAL FINANCIAL PERFORMANCE (FY2023-24)................. 47 NEW FCCC PROJECTED FINANCIAL PERFORAMNCE (FY2027-28) .......................................... 48 SIX-YEAR OPERATING PRO FORMA AND COST RECOVERY TRAJECTORY .............................. 49 FIRST YEAR REVENUE MODEL...................................................................................................... 51 FIRST-YEAR OPERATING EXPENDITURE MODEL ......................................................................... 55

CHAPTER NINE
- CONCLUSION ........................................................................................................... 58 APPENDIX A – LAGOON EVENT HALL OPERATIONAL CONTEXT ........................................................ 59

Community Center Business Operations Plan
1 CHAPTER ONE – EXECUTIVE SUMMARY

PURPOSE AND ROLE OF THE COMMUNITY CENTER IN THE SYSTEM
The Foster City Community Center (FCCC) is the civic, cultural, and operational anchor of the City’s recreation and community services system. More than a replacement of an aging facility, the new Center represents a generational investment in Foster City’ s identity, a place intentionally designed to bring residents together for learning, wellness, celebration, and connection. Its Lagoon-front setting, flexible multi-use floorplan, and adjacency to Leo Ryan Park position it as both a daily neighborhood resource and a regional destination for events and community gatherings.

Across all phases of community input derived during the planning process of the 2025 Parks and Recreation Master Plan, including the statistically valid needs assessment, residents consistently affirmed that a modern community center is essential to supporting their desired quality of life. Survey results show that 4 6% of households participated in City programs in the past year , well above national benchmarks, and 90% rated program quality as excellent or good. These findings reflect the demographic and lifestyle characteristics - a highly diverse, multi-generational, and wellness-oriented community with strong expectations for accessible, high-quality spaces.

Operationally, the new FCCC is designed to deliver the majority of the City’s structured recreation programs, fitness and wellness offerings, arts and ceramics instruction, Early Education and youth services, community events, and facility rentals. With much of the City’s demand constrained by the prior building’s limitations, the new Center is expected to open at high initial utilization, with fitness studios, multipurpose rooms, arts spaces, and event halls serving as the primary drivers of participation and revenue. The facility’s ability to meet this demand will depend on coordinated approaches to staffing, customer service, scheduling, custodial standards, and pricing — all addressed in subsequent chapters of this business plan.

Within the larger Parks and Recreation system, the FCCC fulfills three interconnected roles:

1.1.1 COMMUNITY ANCHOR
The Center provides a welcoming environment where residents can gather for celebrations, cultural events, youth activities, senior programs, and civic engagement. Its design reflects Foster City’s values of openness, inclusivity, and community connection while supporting everything from Early Education classes and ceramics workshops to large weddings and cultural festivals. The building’s commons, lobby, café and terraces act as a shared living room for the community.

1.1.2 PROGRAM HUB
The Center supports year-round programming across fitness, wellness, arts, enrichment, camps, Active aging, Early Education , and community education. Results from the needs assessment indicate that fitness/wellness programs, family activities, Active aging programs, and community events are among the highest priority investments for residents. The FCCC’s two fitness studios, multiple multipurpose rooms, Early Education and youth spaces, arts studios, and outdoor terraces directly respond to these community-expressed needs.

Foster City, California
2 1.1.3 REVENUE GENERATING OPPORTUNITIES
The FCCC is a part of the City’s long -term financial sustainability strategy. The facility’s event halls, divisible meeting rooms, café, catering kitchens, ceramics studio, arts spaces, and multipurpose rooms collectively support a diverse revenue portfolio , including rentals, classes, special events, premium fitness offerings, arts instruction, and food service. Strong demand indicators from the 2025 Parks and Recreation Master plan ( recreation trends, needs assessment, demographics) position the Center to generate meaningful cost-recovery contributions while maintaining public accessibility.

PURPOSE OF THIS BUSINESS OPERATIONS PLAN
The FCCC represents a $65.9 million capital investment in a new, modern civic facility intended to serve the community for multiple decades. This Business Operations Plan establishes the operational, staffing, and financial framework required to responsibly manage that investment once the facility opens.

The former William E. Walker Recreation Center operated under informal and incremental practices that reflected a smaller, less complex building. The new facility is significantly larger, supports concurrent uses, includes premium event space, relies on partnerships, and carries higher operating costs and community expectations. As a result, the prior operational model cannot be carried forward without creating unsustainable financial, staffing, and service delivery impacts.

HOW TO USE THIS PLAN
This Business Operations Plan provides guidance on how the new Community Center could operate, how costs could be managed, how revenue could be generated, and what level of ongoing General Fund support should be anticipated and appropriate.

REPLACEMENT OF AN AGING FACILITY
As documented in Chapter Two, the new Community Center replaces an aging and operationally constrained facility that no longer met community needs, accessibility standards, or program demand.

The former Recreation Center limited programming, restricted event capacity, and constrained service delivery.

The new two-story, approximately 40,000+ square-foot facility significantly expands:
• Program and class capacity
• Fitness and wellness offerings
• Arts and ceramics instruction
• Early Education services
• Community events and rentals
This expansion introduces a fundamentally different operating environment, including multiple concurrent activities, higher customer volumes, increased staffing coordination, and greater financial exposure. In summary, a new and improved FCCC requires a new and improved approach to operating the facility.

Community Center Business Operations Plan
3 OPERATIONAL GOALS
The FCCC is designed to function as:

1. A Community Anchor - A welcoming civic facility supporting wellness, learning, arts, culture, and community connection across generations.

2. A Program and Service Hub - The primary indoor venue for City-delivered recreation programs, fitness classes, arts instruction, Active aging services, youth enrichment, and community education.

3. A Disciplined Municipal Operation - A City-managed facility that leverages rentals, events, and partnerships to offset operating costs while maintaining City control over access, pricing, scheduling, and operating standards, along with equity and accountability.

Operational success is measured by service quality, safe and well-supervised operations, high utilization within defined hours, and financial performance aligned with City policy, not by profit maximization.

CITY COUNCIL AND COMMUNITY EXPECTATIONS
Through Council direction, community engagement, and needs assessment findings, the following expectations have been established for the new Community Center:
• High-quality facilities and services
• Expanded access to fitness, arts, and cultural programming • Safe, professionally managed spaces
• Responsible stewardship of City assets
• Fiscal discipline in ongoing operations
While the facility is not expected to be self-supporting, it is expected to operate with greater financial discipline than the former Recreation Center, given its scale, amenities, and revenue -generating capacity. This Business Operations Plan directly responds to those expectations.

OPERATING MODEL OVERVIEW
The Community Center is intentionally modeled as a moderate-hour, high-efficiency facility.

1.7.1 BASELINE OPERATING HOURS
• Monday–Thursday: 8:00 AM – 8:00 PM
• Friday–Saturday: 8:00 AM – 5:00 PM
• Sunday: Closed to the public, except for approved rentals • Total Weekly Hours: 66
This schedule reflects community demand, staffing sustainability, and cost control considerations.

The facility operates under a controlled access “library model”:
• Shared gathering spaces such as the lobby and lounges remain open during operating hours • Program, studio, and event spaces are locked unless scheduled Foster City, California
4 • City staff centrally manages all scheduling and access • A Manager-On-Duty is present during all public operating hours This model supports high utilization while maintaining safety, asset protection, and service consistency.

PLEASE NOTE: The former Recreation Center was typically open from 9:00 a.m. to 10:00 p.m. on weekends regardless of scheduled activity. The proposed operating hours reflect an updated model that aligns community access with programmed use and staffing needs, while increasing the operational focus on facility rentals and events.

1.7.2 STAFFING FRAMEWORK
Staffing is based on operating hours, functional workload, and concurrent activity levels rather than square footage. The model combines:
• Full-time leadership and administrative roles
• Dedicated rental and event coordination
• Part-time and event-based staffing scaled to demand
In FY 2027 -28, the expected first full year of operational maturity, total staffing capacity is approximately 11.27 FTE ( full-time equivalent positions ), inclusive of full -time, part -time, and seasonal staff. The staffing levels are shown in the chart below.

Position Existing or New Full or Part-time
Percentage of Time/Cost
Allocated to FCCC
Operations
Annual Labor Hour Allocation
to FCCC Operations Timing
ADMINISTRATIVE ASSISTANT I Existing Full-time 60% 1,248 Immediate ADMINISTRATIVE ASSISTANT II Existing Full-time 75% 1,560 Immediate BLDG SERVICES COORDINATOR Existing Full-time 70% 1,456 Immediate MANAGEMENT ANALYST Existing Full-time 45% 936 Immediate OFFICE ASSISTANT I Existing Full-time 30% 624 Immediate PARKS & RECREATION DIRECTOR Existing Full-time 30% 624 Immediate RECREATION COORDINATOR II - (Contract classes, Seniors) Existing Full-time 65% 1,352 Immediate RECREATION COORDINATOR II - (Facility rentals) Existing Full-time 50% 1,040 Immediate RECREATION MANAGER Existing Full-time 60% 1,248 Immediate RENTAL COORDINATOR NEW Full-time 100% 2,080 Immediate
RECREATION SPECIALIST NEW Part-time 100% 1,560 7/1/2027 BUILDING SERVICE COORDINATOR Existing Part-time 100% 1,560 Immediate OFFICE ASSISTANT I Existing Part-time 100% 1,560 Immediate BUILDING SERVICE ASSISTANTS Existing Part-time 100% 6,594 Immediate 23,442TOTALS

Community Center Business Operations Plan
5 FINANCIAL PERFORMANCE

1.8.1 FORMER RECREATION CENTER ACTUAL FINANCIAL PERFORMANCE (FY2023 -24) As noted to the right, the financial performance of the former Recreation Center in its final year of operation (FY2023-24) reflects a $2.3 million operating loss and a cost recovery of 22%.

Please Note: Program revenue includes city-self operated ceramics program ($97,000)

FORMER FOSTER CITY RECREATION CENTER
FISCAL YEAR 2023-24

FINANCIAL PERFORMANCE

REVENUE SUMMARY
Programs $177,584
After School Program - Contracted $215,000
General Facility Rentals $73,705
Lagoon Room Rentals $139,136
Sponsorships $10,000
Private Public Partnerships $23,933
TOTAL REVENUES $639,358

EXPENDITURE SUMMARY
$1,025,329
$396,950
$1
,542,317
TOTAL EXPENSES TOTAL $2,964,596
NET ANNUAL REVENUE/(LOSS) ($2, 325,238)
Annual Cost Recovery 22%
Personnel Services
Supplies
Services and Charges
Foster City, California
6 1.8.2 NEW FCCC PROJECTED FINANCIAL PERFORAMNCE (FY2027- 28) As noted below, the projected financial performance of the new FCCC in its first full year of operation (FY2027-28) reflects a $1.591 million operating loss and a cost recovery of 57%.

PLEASE NOTE: It is understood that the projected and actual financial performance are contingent upon the adoption of a pricing policy (including but not limited to pricing methodology, cost recovery goals and fees) by the City Council of Foster City.

NEW FOSTER CITY COMMUNITY CENTER
FISCAL YEAR 2027-28

PROJECTED FINANCIAL PERFORMANCE

EXPENDITURE SUMMARY
$1,454,013
$406,755
$1,642,317
$204,000
TOTAL EXPENSES TOTAL E $3,707,085
NET ANNUAL REVENUE/(LOSS) ($1,591,503)
Annual Cost Recovery 57%
Lagoon Event Hall Pass Through Charges
Personnel Services
Supplies
Services and Charges

Community Center Business Operations Plan
7 1.8.3 SIX -YEAR OPERATING PRO FORMA AND COST RECOVERY TRAJECTORY FY 2027–28 through FY 2032–33
PRO FORMA STRUCTURE AND ASSUMPTIONS APPLIED BASELINE (FY 2027 –28) • Revenue baseline reflects:
o City-delivered programs
o Private-Public Partnerships (Chapter 5 - Expected scenario) o General facility rentals
o Lagoon Event Hall enterprise
• Expenditure baseline reflects:
o Fully burdened FCCC staffing plan
o Program supplies and contracts
o Services, utilities, ISFs, and facility operations
o Event Hall non-personnel enterprise costs
The table below presents annual revenues, expenditures, net operating position, and cost recovery for FY 2027–28 through FY 2032–33.

TAKEAWAYS
• Revenues grow at 4% annually, driven by participation, pricing discipline, rental optimization and consumer price indices.
• Expenditures grow slower than revenues due to:
o Labor cost escalation is assumed to be 3% annually
Pro Forma Revenues & Expenditures
Foster City Community Center
BASELINE: REVENUES AND EXPENDITURES
Revenues 1st Year 2nd Year 3rd Year 4t h Year 5th Year 6th Year Programs $162,232 $168,721 $175,470 $1 82,489 $189,788 $197,380 General Facility Rentals $215,000 $223,600 $232,544 $241,846 $251,520 $261,580 General Facility Rentals $212,850 $221,364 $230,219 $239,427 $249,004 $258,965 Lagoon Event Hall Rentals $1,218,000 $1,266,720 $1,317,389 $1,370,084 $1,424,888 $1,481,883 Sponsorships $25,000 $26,000 $27,040 $28,122 $29,246 $30,416 Private Public Partnerships $282,500 $293,800 $305,552 $317,774 $330,485 $343,704 Total $2,115,582 $2,200,205 $2,288,213 $2,379,742 $2,474,932 $2,573,929 Expenditures 1st Year 2nd Year 3rd Year 4t h Year 5th Year 6th Year Personnel Services $1,454,013 $1,497,634 $1,542,563 $1 ,588,840 $1,636,505 $1,685,600 Supplies $406,755 $418,958 $431,526 $444,472 $457,806 $471,541 Services and Charges $1,642,317 $1,691,587 $1,742,334 $1,794,604 $1,848,442 $1,903,896 Lagoon Event Hall Pass Through Charges $204,000 $210,120 $216,424 $222,916 $229,604 $236,492 Total $3,707,085 $3,818,298 $3,932,847 $4,050,832 $4,172,357 $4,297,528 Annual General Fund Subsidy $1,591,503 $1,618,093 $1,644,633 $1,671,090 $1,697,425 $1,723,599 Cost Recovery 57% 58% 58% 59% 59% 60%
Foster City, California
8 o City cost control measures for internal service funds minimize unforeseen spikes for these expenditures.
• As a result, cost recovery gradually increases.

1.8.4 FOSTER CITY COMMUNITY CENTER FINANCIAL PERFORMANCE COMPARISON The below table compares the actual financial performance of the last fiscal year of operation of the former Recreation Center with the projected financial performance of the first full fiscal year of operation for the new FCCC.

PLEASE NOTE: Chapter 8 details financial projections for the new FCCC. Additionally, Appendix A provides market, pricing and revenue detail for the Lagoon Event Hall.

FORMER FOSTER CITY

RECREATION CENTER

NEW FOSTER CITY

COMMUNITY CENTER
FISCAL YEAR 2023-24 FISCAL YEAR 2027-28

FINANCIAL PERFORMANCE PROJECTED FINANCIAL PERFORMANCE
Programs $177,584 $162,232 ($15,352) Frmr Rec Center = $97K city-run ceramics class $ After School Program - Cont $215,000 $215,000 $0 Net neutral General Facility Rentals $73,705 $212,850 $139,145 Revenue increase by 189% Lagoon Room Rentals $139,136 $1,218,000 $1,078,864 Revenue increase by 775% Sponsorships $10,000 $25,000 $15,000 Revenue increase of 150% Private Public Partnerships $23,933 $282,500 $258,567 Revenue increase of 1,080% TOTAL REVENUES $639,358 $2,115,582 $1,476,224 Overall revenue increase of 231%

EXPENDITURE SUMMARY
$1,025,329 $1,454,013 $428,684 Expense increase of 42%
$396,950 $406,755 $9,805 Expense increase of 2%
$1,542,317 $1,642,317 $100,000 Expense increase of 6%
Lagoon Event Hall Pass
Through Charges $0 $204,000 $204,000 Cost did not exist in Former FCCC Budget TOTAL EXPENSES $2,964,596 TOTAL EXPENSES $3,707,085 $742,489 Overall expenditure increase of 25%

NET ANNUAL
REVENUE/(LOSS) ($2,325,238) ($1,591,503) $733,735 General fund subsidy reduction of 32% Annual Cost Recovery 22% 57% 36% Increase of 36%

REVENUE SUMMARY
Personnel Services
Supplies
Services and Charges

DELTA EXPLANATION

Community Center Business Operations Plan
9 TAKEAWAYS
• Dramatic improvement in cost recovery - The new facility is projected to nearly double cost recovery, increasing from 21.6% to 57%, signaling a much stronger alignment between revenues and operating costs.
• Revenue performance scales meaningfully with the new facility - Total revenue is projected to increase by 231%, demonstrating that the new facility materially expands the City’s ability to generate earned income through programs, rentals, and services. • General fund subsidy normalizes despite significant expansion - Even with substantially higher operating expenditures, the general fund subsidy decreases by nearly $750,000 annually indicating that incremental costs are being offset more efficiently.

BOTTOM -LINE ASSESSMENT
The FCCC is a generational civic investment that requires a disciplined operating framework.

This Business Plan:
• Replaces outdated operating assumptions
• Aligns staffing, scheduling, and financial performance • Establishes clear authority and accountability
• Balances community access with fiscal responsibility
The plan provides a blueprint to ensure the Community Center opens successfully and operates sustainably over time. This business plan should be updated after two full fiscal years of operation.

Foster City, California
10 CHAPTER TWO – FOSTER CITY COMMUNITY CENTER REBUILD PROJECT

PROJECT BACKGROUND AND HISTORY
The FCCC Rebuild Project represents one of the most significant civic investments undertaken by the City in recent decades. The vision for a modern, flexible, and community- serving Community Center emerged after years of facility aging, functional limitations, and evolving community needs. The new Community Center is designed to serve as a multigenerational hub for events, programs, fitness, arts, learning, and community gatherings.

PURPOSE AND VISION FOR THE NEW FACILITY
The new Community Center replaces an aging structure with a flexible, modern, and community-oriented facility that supports:
• Multigenerational use
• High-quality fitness and wellness programs
• Expanded arts, ceramics, and creative spaces
• Large and small-scale events
• Active aging and lifelong learning
• Early Education programming
• Community rentals, gatherings, and celebrations
• Improved customer experience through modernized service areas

FACILITY FLOOR PLANS

2.3.1 SITE PLAN

Community Center Business Operations Plan
11 2.3.2 FIRST FLOOR PLAN

2.3.3 SECOND FLOOR PLAN

Foster City, California
12 FACILITY SQUARE FOOTAGE OVERVIEW
The new Community Center is a two- story, approximate ly 40,000+ square -foot facility composed of program, event, fitness, arts, Early Education, and community spaces designed to maximize flexibility and operational efficiency. The building’s design integrates Lagoon -front terraces, community -facing plazas, and indoor/outdoor programming opportunities.

Below is an overview of major spaces, organized by functional area.

2.4.1 PUBLIC GATHERING SPACES
Space Area (SF)
Lobby 2,165
Event Lobby 1,185
Community Lounge (2nd floor) 500
Balcony Terrace 1,020

These areas establish the customer experience and support events, rentals, community gatherings, and daily recreation use.

2.4.2 EVENT AND LARGE -GROUP SPACES
Space Area (SF)
Event Space A 1,795
Event Space B 1,880
Event Space C 2,225
Event Space D 1,315
Event Space Storage 835
Event Space Total 7,215

These spaces support weddings, corporate events, community celebrations, cultural gatherings, and City- run programs. Their size and modularity allow simultaneous events or single large events.

Community Center Business Operations Plan
13 2.4.3 ACTIVE AGING, PROGRAMS, AND LEARNING SPACES
Space Area (SF)
Senior Lounge 1,340
Senior Lounge Storage 155
Medium Activity Room (1st floor) 715
Medium Activity Room (1st floor) Storage 90
Activity Room A 960
Activity Room B 750
Activity Room Storage 190
Conference Room 165
Lactation Room 75

These spaces support lifelong learning, Active aging programs, afterschool programming, camps, meetings, workshops, seminars, and multigenerational activities.

2.4.4 FITNESS, WELLNESS, AND MOVEMENT SPACES
Space Area (SF)
Fitness Room A 1,290
Fitness Room B 975
Fitness Storage 370
Fitness Space Total 2,265

Designed for high-demand group exercise, dance, martial arts, mind-body classes, and specialized fitness offerings.

Foster City, California
14 2.4.5 ARTS, CERAMICS, AND CREATIVE SPACES
Space Area (SF)
Arts Room 1,095
Arts Storage 185
Ceramics Studio 1,120
Kiln Room 170
Ceramics Storage 115

The inclusion of a professional-grade ceramics studio—with a kiln room and dedicated storage supports vendor-operated programming, advanced creative learning, and community arts initiatives.

2.4.6 FOOD SERVICE AND EVENT SUPPORT SPACES
Space Area (SF)
Café 690
Kitchen #1 675
Kitchen #2 265
Kitchen Storage 135
Event Wing Storage 835

The café reinforces the facility’s role as a community gathering space, while kitchen infrastructure enables high-quality catering for events and rentals.

2.4.7 EARLY EDUCATION AND EARLY CHILDHOOD SPACES
Space
Area (SF)
Early Education Classroom 930
Early Education Storage 140
Early Education Restroom —

The expanded Early Education supports early learning, family engagement, and structured youth programming.

Community Center Business Operations Plan
15 SUMMARY
The Community Center Rebuild Project reflects a decade of planning, community engagement, and policymaking. Through a deliberate design process, significant financial coordination, and master planning alignment, Foster City is delivering a flagship community facility that will anchor recreation, culture, wellness, and community life for decades.

Foster City, California
16 CHAPTER THREE – COMMUNITY CENTER OPERATION AL ASSUMPTIONS

PURPOSE AND ROLE IN THE SYSTEM
The FCCC is the civic, cultural, and operational anchor of the City’s recreation and community services system. More than a replacement of an aging facility, the new Center represents a generational investment in Foster City’s identity , a place intentionally designed to bring residents together for learning, wellness, celebration, and connection. Its Lagoon- front setting, flexible multi -use floorplan, and adjacency to Leo Ryan Park position it as both a daily neighborhood resource and a r egional destination for events and community gatherings.

Within the larger Parks and Recreation system, the FCCC fulfills three interconnected roles:

3.1.1 COMMUNITY ANCHOR
The Center provides a welcoming environment where residents can gather for celebrations, cultural events, youth activities, senior programs, and civic engagement. Its design reflects Foster City’s values of openness, inclusivity, and community connection which supports everything from Early Education classes and ceramics workshops to large weddings and cultural festivals. The building’s commons, lobby, café, terraces, and event spaces act as a shared living room for the community.

3.1.2 PROGRAM HUB
The Center supports year-round programming across fitness, wellness, arts, enrichment, camps, Active aging, Early Education , and community education. Results from the needs assessment indicate that fitness/wellness programs, family activities, Active aging programs, and community events are among the highest priority investments for residents. The FCCC’s two fitness studios, multiple multipurpose rooms, Early Education and youth spaces, arts studios, and outdoor terraces directly respond to these community-expressed needs.

Community Center Business Operations Plan
17 3.1.3 REVENUE GENERATING OPPORTUNITIES
The FCCC is a part of the City’s long -term financial sustainability strategy. The facility’s event halls, divisible meeting rooms, café, catering kitchens, ceramics studio, arts spaces, and multipurpose rooms collectively support a diverse revenue portfolio — including rentals, classes, special events, premium fitness offerings, arts instruction, and food service. Strong demand indicators from the 2025 Parks and Recreation Master plan ( recreation trends, needs assessment, demographics) position the Center t o generate meaningful cost-recovery contributions while maintaining public accessibility.

OPERATIONAL FRAMEWORK AND ASSUMPTIONS

3.2.1 PURPOSE OF THE OPERATIONAL FRAMEWORK
This section defines how the FCCC will function on a day-to-day basis once opened. It translates facility design, community demand, and policy direction into clear operational assumptions related to access, staffing, scheduling, security, partnerships, and service delivery. The intent of this framework is to:
• Ensure consistent, high-quality customer experiences
• Maintain operational control and safety in a complex, multi-use facility • Support high utilization across diverse user groups
• Establish a scalable backbone for staffing and future financial modeling • Streamline and simplify facility rental pricing in accordance with best practices These assumptions form the foundation for the utilization matrices, staffing models, and enterprise operations presented later in the Business Plan.

3.2.2 CORE OPERATING PHILOSOPHY

LIBRARY MODEL OF ACCESS AND CONTROL
The Community Center will operate using a “library model” of access, meaning the building is open and welcoming to all, but access to individual rooms is managed by staff based on scheduled use. This approach allows the Center to be accessible while maintaining safety, protecting City assets, and using staffing resources efficiently across a wide range of users and activities. Under this model:
• The public commons and lobby remain open, welcoming, and visible. • All program rooms, studios, and event spaces remain locked unless scheduled for a program, rental, or contracted use.
• Staff control room access based on the daily schedule, unlocking and relocking spaces as needed.

This model balances openness and inclusivity with the operational discipline required to protect City assets, manage staffing efficiently, and ensure safety across age groups and uses.

3.2.3 BUILDING ACCESS, CIRCULATION, AND CUSTOMER FLOW

PRIMARY AND SECONDARY ENTRIES
• The front lobby and customer service desk serve as the single primary public entry. • Café doors function as a secondary, time-limited entry only during café operating hours. • All other exterior doors remain locked and controlled.

Foster City, California
18 The front desk maintains visual oversight of the lobby and commons at all times, reinforcing safety and wayfinding.

SENIOR LOUNGE INTERFACE
• The Senior Lounge opens to an outdoor courtyard; however, its interior door is egress-only. • Privacy glazing and operable shades mitigate the “fishbowl” effect while preserving daylight. • This approach supports dignified Active aging use while maintaining circulation control.

3.2.4 HOURS OF OPERATION (BASELINE ASSUMPTIONS)
Baseline working assumptions, subject to seasonal adjustment, are as follows:
• Monday–Thursday: 8:00 AM – 8:00 PM
• Friday–Saturday: 8:00 AM – 5:00 PM
• Sunday: Closed to the public; rentals only
These hours reflect community demand patterns identified through the 2025 Parks and Recreation Master Plan. They also balance service expectations with staffing and custodial efficiency.

Any expansion of evening or Sunday public hours will require proportional adjustments to staffing, supervision, and cleaning protocols.

3.2.5 STAFFING BACKBONE AND COVERAGE ASSUMPTIONS

FRONT DESK AND SUPERVISION
• A minimum of two staff at the front desk during all public operating hours, which is consistent with the customer service operations of the former Recreation Center. • Building attendants provide coverage during evenings (beginning approximately 4:00 PM) and weekends.
• A Manager-On-Duty (MOD) is present during all open hours, with authority to:
o Resolve customer issues
o Access camera systems
o Oversee rentals and events
o Address safety and operational concerns
This staffing posture aligns with the Center’s scale, balanced age segmentation, and high rental and event demand .

3.2.6 SECURITY, MONITORING, AND RISK MANAGEMENT
• Security cameras cover all major lobbies, corridors, entries, and event spaces. • At least one authorized staff member (front desk or MOD) has live camera access during all operating hours.
• Camera access protocols (viewing, storage, retrieval) will be defined in coordination with IT and City policy.

Community Center Business Operations Plan
19 • The Senior Lounge interior door remains egress -only; café doors are time -limited; upper-floor commons rely on camera monitoring rather than fixed posts.

This layered approach provides strong oversight without excessive staffing.

3.2.7 PAYMENTS, CASH HANDLING, AND CUSTOMER TRANSACTIONS Operational assumptions prioritize risk reduction and efficiency:
• Credit card processing fees will be shown as visible surcharges. • Customers are steered toward electronic payment methods. • End-of-shift reconciliation occurs in a secured, non-glazed office adjacent to the front desk. • A bolted safe minimizes cash movement; procedures reduce “money walks” through public areas.

These practices reduce exposure and align with best practices for multi-use civic facilities .

3.2.8 SEASONAL UTILIZATION FRAMEWORK
Operations will follow a two-season utilization model:

SCHOOL YEAR
• Daytime emphasis on:
o Active aging programs
o Adult learning
o Early Education and ceramics partner operations
• Evenings support:
o Fitness and wellness
o Adult enrichment
o Meetings and rentals
• Seniors retain consistent daytime access to avoid displacement.

SUMMER
Prioritizing summer youth programs and weekend rentals in the most sought -after spaces to balance revenue generation with community access. This would include:
• Youth programs and camps expand, primarily upstairs.
• Event halls may be selectively used for camps during weekdays. • Senior Lounge maintains consistent daytime hours.
• Events and rentals increase on weekends.

Foster City, California
20 3.2.9 PRIVATE - PUBLIC PARTNERSHIP OPERATIONS
Three program areas are intentionally structured for private- sector operation, selected through an RFI process:

CERAMICS STUDIO
• Vendor-operated ceramics programming
• City provides space, utilities, and baseline coordination • Vendor manages instruction, materials, and class operations

EARLY EDUCATION
• Private operator
• Fixed weekday schedules aligned with family demand
• Supports early childhood services without expanding City staffing obligations CAFÉ
• Privately operated food service
• Supports daily users and event activity
The private public partnerships reflect a targeted strategy to place specialized, compliance -intensive, and market -driven services with operators whose core competencies align with those demands.

Additionally, these private-public partnerships allow the City to expand services while controlling risk, staffing complexity, and operational overhead.

3.2.10 LAGOON EVENT HALL AS A DEDICATED OPERATING ENTERPRISE The Event Hall functions as a business within the business. Key assumptions:
• Hospitality-level standards for presentation, service, and responsiveness • Fully developed policies, pricing, workflows, and branding prior to opening • Dedicated rental coordination staff
• City-staffed custodial and setup crews for accountability and quality • Limited list of approved, insured caterers
• Simple, professional customer journey from inquiry through close-out Branding as the Lagoon Event Hall at the FCCC establishes market positioning and quality expectations from day one.

3.2.11 ALIGNMENT WITH PRIOR ANALYSIS
These operational assumptions directly respond to:
• High participation and satisfaction levels
• Fitness and wellness as top priority investments
• Strong demand for rentals and cultural events
• A diverse, aging, high-expectation community

Community Center Business Operations Plan
21 • The need for all-day, all-audience staffing coverage The result is an operational model designed for high utilization, controlled access, premium service quality, and long-term sustainability.

OPERATIONAL ASSUMPTION FRAMEWORK SUMMARY

Operational Area Core Assumption Implications for Daily Operations Operating Model Library-style access and control Public commons open; all program, studio, and event rooms locked unless scheduled. Staff control access based on daily use.

Role in System Primary indoor program, event, and rental hub Majority of structured recreation programs, fitness, arts, events, and rentals occur at this facility.

Primary Public Entry Single main lobby entry with front desk Front desk maintains visual control, customer service, wayfinding, and access management.

Secondary Entry Café doors limited to café operating hours Reduces uncontrolled access while supporting café activation.

Senior Lounge Access Interior access controlled; courtyard door egress-only Protects privacy, manages circulation, and maintains dignity for Active Aging users.

Hours of Operation Mon–Thu 8:00 AM–8:00 PM; Fri–Sat 8:00 AM–5:00 PM; Sun rentals only
Supports peak demand while balancing staffing, supervision, and custodial efficiency.

Seasonal Operations Two-season model (School Year / Summer) School year prioritizes fitness, adult learning, Active Aging; summer expands youth and camp use.

Front Desk Coverage Minimum two staff on duty during open hours Ensures customer service, safety, transactions, and access control.

Supervision Model Manager-On-Duty present at all times MOD has authority over security, events, customer issues, and facility response.

Evening & Weekend Coverage Building monitors supplement front desk Provides floor coverage during peak use and event periods.

Security & Monitoring Camera coverage of all major public areas Cameras monitored in Surveillance Camera Policy Cash Handling Electronic-first payments; limited cash Reduced risk through use of credit/debit/e-payments in accordance with City policy.

Room Scheduling Centralized scheduling by City staff Prevents conflicts, maximizes utilization, and maintains equity across user groups.

Event Operations Event Center operated as distinct enterprise Dedicated policies, workflows, and staffing required for weddings, banquets, and large events.

Event Standards Hospitality-level service expectations Professional setup, staffing, custodial, and customer experience standards.

Custodial Model Contracted services Ensures effective, efficient, flexible services Private Partner Spaces Ceramics, preschool, café operated by private partners City provides space and oversight; partners manage daily operations under agreement.

Ceramics Studio Vendor-operated instruction and programming Reduces City staffing burden while expanding arts offerings.

Early Learning Private operator Consistent weekday use aligned with family demand; minimal City operational exposure.

Café Privately operated food service Supports daily use and events; potential preferred caterer role.

Programming Priorities Fitness, wellness, active aging, youth enrichment, community events Direct response to needs assessment and MPM findings.

Marketing & Awareness Facility functions as visibility engine Interior signage, staff scripts, and program promotion reinforce awareness.

Flexibility of Spaces Rooms designed for multi-use Supports rapid transitions between classes, meetings, camps, and rentals.

Policy Alignment Clear rules for access, rentals, and partner use Prevents operational drift and protects City assets.

Scalability Model allows phased growth Hours, staffing, and programming can expand as demand and funding allow.

Foster City, California
22 PURPOSE AND ROLE WITHIN THE COMMUNITY CENTER
The Lagoon Event Hall is intentionally operated as a professional event venue and as a dedicated municipal enterprise within the F CCC. The Event Hall is not intended to function as informal overflow space or be scheduled without full operational support.

Its scale, location, finishes, and market positioning differentiate from typical recreation rentals. As a result, it requires a higher level of operational discipline, staffing, pricing control, and governance to protect City assets, manage risk, and achieve expected financial performance.

The Event Hall is a key contributor to overall facility cost recovery and plays a central role in supporting the long-term sustainability of Community Center operations.

OPERATING INTENT
The Event Hall is designed to support:
• Weddings and private celebrations
• Cultural and community events
• Corporate meetings and banquets
• City-sponsored and civic functions
Operationally, the Event Hall is intended to:
• Concentrate rentals during evenings and weekends
• Preserve weekday daytime availability for City use where appropriate • Maintain hospitality-level service standards
• Generate predictable, contractually secured revenue

POLICY AUTHORITY
• City Council retains authority over:
o Rental policies and fee schedules
o Cost recovery objectives
o Alcohol, security, and use regulations
• Policy changes occur only through formal Council action.

OPERATIONAL AUTHORITY
• Day-to-day authority rests with Parks and Recreation staff. • A designated Manager-On-Duty (MOD) has full authority during all Event Hall activities to:
o Enforce policies and contracts
o Address safety and compliance issues
o Direct staffing, security, and custodial response
o Modify or terminate events if conditions warrant

Community Center Business Operations Plan
23 This structure ensures decisions are operationally driven, defensible, and consistent.

CONTROLLED USE AND CONFIGURATION STANDARDS
All Event Hall use is governed by pre-approved configurations, capacities, and layouts. Key requirements include:
• Advance approval of room configurations and occupancy • Defined setup and teardown windows
• Enforced capacity limits and fire code compliance
• No unauthorized reconfiguration or shared space use
Failure to comply with approved conditions is grounds for immediate corrective action, including event suspension or termination. This approach:
• Protects guests and staff
• Reduces facility wear
• Preserves scheduling flexibility
• Minimizes operational conflicts

BOOKING, CONTRACTS, AND FINANCIAL CONTROLS
All Event Hall activity follows a standardized, enterprise-level booking process. Key elements include:
• Centralized inquiry and booking through City staff and City website • Fully executed contracts prior to event confirmation
• Mandatory deposits and advance payments
• Defined cancellation and refund policies
• Required insurance, permits, and approvals
No event is considered confirmed without a fully executed contract and receipt of required payments.

Informal holds, exceptions, or verbal approvals are not permitted. This discipline ensures financial predictability, transparency, and accountability.

STAFFING AND SERVICE STANDARDS
The Event Hall operates as a professional event venue under hospitality-level service expectations.

Operational requirements include:
• Dedicated Rental Coordinator oversight
• City-staffed setup, breakdown, and custodial crews
• Manager-On-Duty presence for all events
• Coordinated security and alcohol service protocols as required Staffing levels scale based on event size, duration, and complexity, with all direct costs passed through to renters where applicable.

Foster City, California
24 FINANCIAL ROLE
The Lagoon Event Hall is the single largest revenue driver within the Community Center operating model.

Financial assumptions include:
• Disciplined pricing aligned with market demand
• Focus on full-room and partial-room rentals
• Evening and weekend utilization as primary drivers
• Pass-through recovery of event-specific operating costs Event Hall operations are projected to exceed cost recovery levels typical of standard recreation programming and to offset a significant portion of overall facility operating costs. These revenues are intended to:
• Reduce General Fund subsidy
• Support broader Community Center operations
• Protect long-term fiscal sustainability

PUBLIC VALUE AND EQUITY CONSIDERATIONS
While operated as an enterprise, the Event Hall remains a public civic asset. Equity and access are supported through:
• Transparent, published pricing
• Priority for City-sponsored and civic events
• Consistent application of rules regardless of renter
• No informal discounts or exceptions
Public value is delivered through structured access, not through ad hoc concessions that undermine operational or financial stability.

BOTTOM -LINE SUMMARY
The Lagoon Event Hall is intentionally structured as a professionally managed municipal enterprise. This operating model:
• Protects City assets and staff
• Supports predictable revenue generation
• Ensures consistent service quality
• Prevents operational drift and exception-based decision-making • Strengthens the overall financial performance of the Community Center By clearly defining authority, controls, and expectations, the City positions the Lagoon Event Hall to operate successfully, responsibly, and sustainably over time.

Community Center Business Operations Plan
25 PURPOSE AND CONTEXT
The FCCC is designed to operate as a City -managed public facility, governed by a controlled- access operating model that prioritizes safety, accountability, scheduling discipline, and consistent customer experience. Within this framework, the City has intentionally identified three functions for private operation: the Ceramics Studio, Early Education, and Café.

This chapter documents the rationale for this approach and outlines the planning -level operational financial implications associated with each private-public partnership. Together, these partnerships are intended to enhance service quality, reduce operational risk, and contribute to the long -term financial sustainability of FCCC without compromising public control or community access.

STRATEGIC JUSTIFICATION FOR PRIVATE OPERATIONS

5.2.1 ALIGNMENT WITH FCCC’S OPERATING MODEL
The decision to pursue private operations for these three functions is not driven by outsourcing core recreation services. Rather, it reflects a targeted strategy to place specialized, compliance -intensive, and market-driven services with operators whose core competencies align with those demands, while the City retains full authority over:
• Building access and security
• Scheduling and space allocation
• Pricing guardrails and affordability expectations
• Emergency procedures and Manager-On-Duty oversight
• Performance monitoring and contract enforcement
Each RFI explicitly requires operators to function within FCCC’s controlled access “library model,” ensuring that private operations are integrated into the broader facility rather than operating independently.

5.2.2 SPECIALIZED EXPERTISE AND RISK MANAGEMENT
Each of the three privately operated spaces presents operational requirements that differ substantially from standard recreation programming:
• Early Education operations require staff credentialing, background checks, child-to-staff ratios, and regulatory compliance that are best managed by experienced early childhood providers. • Ceramics studio operations involve specialized equipment, ventilation systems, kiln firing, silica exposure controls, and chemical handling that require dedicated technical expertise and safety systems.
• Café operations introduce food safety regulations, health department inspections, and event- driven demand fluctuations that benefit from professional food service management.

By structuring these services as private partnerships, the City reduces exposure to regulatory, staffing, and operational risk while securing consistent, high-quality service delivery.

Foster City, California
26 5.2.3 SERVICE QUALITY AND CUSTOMER EXPERIENCE
These three spaces play an outsized role in shaping the public’s experience of FCCC:
• The Early Education serves as a weekday anchor for families. • The Ceramics Studio supports lifelong learning, creative expression, and intergenerational programming.
• The Café functions as a social connector, supporting both daily users and special events.

Private operators are expected to bring established operating systems, trained staff, and customer - service standards that elevate the overall experience while remaining aligned with City branding, equity goals, and community expectations.

5.2.4 ASSET STEWARDSHIP AND COST CONTAINMENT
Across all three RFIs, responsibility is intentionally allocated so that:
• The City retains responsibility for base building systems and overall facility operations. • Operators assume responsibility for day-to-day operations within their assigned spaces, including staffing, internal janitorial, consumables, permits, and insurance.

This structure allows the City to avoid building internal staffing and compliance systems for three distinct business lines, while still protecting public assets through defined maintenance expectations and security measures.

FINANCIAL STRATEGY AND DEAL STRUCTURE OPTIONS
The RFIs establish allowable deal structures that balance financial sustainability with service delivery goals. Importantly, each space is treated differently based on its mission, revenue potential, and risk profile.

5.3.1 BEST PRACTICE DEAL STRUCTUR E OPTIONS
• BASE RENT PLUS A PERCENTAGE OF GROSS REVENUE
o This structure ensures a predictable minimum contribution while allowing the City to share in upside generated through strong enrollment and programming performance. • BASE RENT ONLY
o A rent-based model prioritizes stability, affordability, and long-term service continuity while offsetting facility costs.
• PERCENTAGE OF GROSS REVENUE WITH A MINIMUM ANNUAL GUARANTEE. o This performance-based structure aligns City revenue with usage levels and event activity while protecting against downside risk through a guaranteed minimum.

5.3.2 ANNUAL FINANCIAL PROJECTIONS
The following projections represent order- of-magnitude, planning-level estimates i ntended to inform policy decisions and business planning. Final values will be determined through competitive procurement and contract negotiation.

Community Center Business Operations Plan
27 SCENARIO DEFINITIONS
• Conservative: Ramp-up period with modest utilization
• Expected: Operations with strong community utilization • Upside: High utilization, strong event integration, and premium demand

5.3.3 ANNUAL CITY REVENUE BY SPACE AND SCENARIO EXAMPLES

CERAMICS STUDIO
Deal Structure: Base Rent + Percentage of Gross Revenue Scenario Estimated Operator Gross City Base Rent % of Gross Total City Revenue Conservative $550,000 $40,000 8% ($44,000) $84,000
Expected $725,000 $45,000 10% ($72,500) $117,500
Upside $900,000 $50,000 12% ($108,000) $230,000

EARLY EDUCATION
Deal Structure: Base Rent Only
Scenario Capacity Utilization Annual Base Rent Total City Revenue Conservative 85% $65,000 $65,000
Expected 95% $75,000 $75,000
Upside Full + Waitlist $85,000 $85,000

CAFÉ
Deal Structure: Percentage of Gross Revenue
Scenario Estimated Gross Sales % of Gross Total City Revenue Conservative $600,000 8% ($48,000) $48,000
Expected $900,000 10% ($90,000) $90,000
Upside $1,250,000 12% ($150,000) $150,000

Foster City, California
28 COMBINED ANNUAL REVENUE IMPACT
Scenario Ceramics Early Education Café Total Annual City Revenue
Conservative $84,000 $65,000 $48,000 $197,000
Expected $117,500 $75,000 $90,000 $282,500
Upside $230,000 $85,000 $150,000 $465,000

USE OF THE REQUEST FOR INTEREST (RFI) PROCESS

5.4.1 PURPOSE OF THE RFI PROCESS
The City should utilize a Request for Interest (RFI) process for the Ceramics Studio, Early Education, and Café as a deliberate pre -procurement strategy aligned with the complexity, specialization, and operational importance of these functions within the FCCC.

Unlike standard recreation programs, these three functions introduce regulated services, specialized staffing models, and market -responsive operations that warrant early engagement with potential operators prior to issuing formal Requests for Proposals (RFPs). The RFI process allows the City to gather market intelligence, test assumptions, and refine agreement structures before committing to specific financial or contractual terms.

The RFI process establishes a structured, transparent way to:
• Confirm market capacity and interest
• Validate operational assumptions
• Understand realistic deal structures and risk allocation • Inform the final RFP scope, performance requirements, and compensation models

5.4.2 WHY AN RFI IS APPROPRIATE FOR FCCC
The FCCC is a new, high-profile facility with multiple integrated uses operating under a controlled-access model. The City’s objectives extend beyond simply “leasing space” and include service quality, public accountability, affordability, and long-term sustainability.

The RFI process supports these objectives by enabling the City to:

1. Engage Specialized Operators Early: Each of the three spaces requires deep operational expertise:
o Early childhood education
o Specialty arts programming with safety and equipment risks o Food service in a public, event-driven environment
An RFI allows the City to engage operators with proven experience in these domains before finalizing procurement requirements.

Community Center Business Operations Plan
29 2. Refine Operating and Financial Models: Rather than prescribing a one-size-fits-all lease or concession model, the RFI process allows the City to evaluate:
o Rent-based versus revenue-share structures
o Appropriate performance metrics
o Practical operating hours and staffing assumptions
o Reasonable expectations for financial participation

3. Protect Public Interests: The RFIs explicitly establish that all private operations must function within FCCC’s adopted operating assumptions, including City control of access, scheduling, pricing guardrails, and Manager-On-Duty authority. Using an RFI ensures these expectations are clearly communicated before competitive proposals are solicited.

4. Support Transparency and Accountability: The RFI process creates a documented rationale for future decisions regarding deal structures, partner selection criteria, and performance expectations, which is particularly important for a publicly funded facility.

5.4.3 HIGH -LEVEL SUMMARY OF RFIS

CERAMICS STUDIO OPERATIONS RFI
Purpose: The Ceramics Studio RFI seeks an experienced operator capable of delivering high- quality ceramics programming while managing the safety, equipment, and compliance requirements associated with kiln-based studio operations.

Key Objectives
• Maximize the City's investment and facility utilization • Provide year-round classes, workshops, camps, and supervised open studio access for all ages • Ensure safe operation of kilns, ventilation systems, and materials • Protect City- owned specialty equipment through preventive maintenance and replacement planning
• Expand access to arts programming while maintaining affordability and quality Operating Framework
• Operates within FCCC’s controlled-access model
• City retains scheduling authority and pricing guardrails • Operator responsible for staffing, materials, internal janitorial, and studio operations • Defined reporting and satisfaction benchmarks

EARLY EDUCATION OPERATIONS RFI
Purpose: The Early Education RFI seeks an early childhood education provider to operate a high-quality Early Education program that serves Foster City families while integrating seamlessly into the FCCC environment.

Key Objectives
• Maximize the City's investment and facility utilization Foster City, California
30 • Deliver developmentally appropriate Early Education services • Ensure child safety, regulatory compliance, and family engagement • Provide predictable weekday utilization that anchors the facility • Maintain affordability and resident priority
Operating Framework
• Operates entirely within FCCC’s controlled access and security model • City retains authority over access protocols, closures, and facility coordination • Operator responsible for staffing, curriculum, enrollment, and compliance CAFÉ OPERATIONS RFI
Purpose: The Café RFI seeks a food service operator that enhances the daily and event-driven experience at FCCC while operating within a public facility environment.

Key Objectives
• Maximize the City's investment and facility utilization • Provide accessible, high-quality food and beverage offerings • Support daily users, programs, staff, and special events • Activate common spaces and strengthen FCCC as a social hub • Operate safely and efficiently within public-sector constraints Operating Framework
• Operates during FCCC public hours under City access control • Coordinates with City staff on events, rentals, and peak demand • Operator responsible for staffing, permits, food safety, and internal operations

KEY TAKEAWAYS
• The private partner model is strategic, not transactional, allowing the City to focus internal resources on core recreation services while leveraging specialized expertise where appropriate. • The City retains full operational control of FCCC, including access, scheduling, pricing guardrails, and performance accountability.
• By FY 2027-28, private operations are projected to generate approximately $275,000+ annually, with upside potential approaching $ 475,000, contributing meaningfully to FCCC’s operating sustainability.
• These revenues are intended to offset facility operating costs and reduce fiscal pressure, not to replace public investment in parks and recreation.

Together, these partnerships position the FCCC to maximize participation, deliver high-quality services, manage risk responsibly, and operate sustainably over the long term while remaining firmly grounded in its public mission.

Community Center Business Operations Plan
31 CHAPTER SIX - SPACE UTILIZATION

PURPOSE AND ROLE IN FCCC OPERATIONS
Effective space utilization and scheduling are foundational to the operational success of the FCCC. As a multi-use facility serving daily programs, private partner operations, rentals, and community events, FCCC must balance access, flexibility, predictability, and control within a finite indoor footprint.

This chapter establishes the guiding principles, hierarchy, and operational framework for how spaces within FCCC are programmed and scheduled. It translates the operating assumptions into a practical, day-to-day system that maximizes use, protects service quality, and avoids internal conflicts among City programs, private operators, and external renters.

CORE SCHEDULING PHILOSOPHY
FCCC scheduling is guided by five core principles:

1. Public Mission First: City-delivered programs and services aligned with the Parks and Recreation mission receive scheduling priority over discretionary rentals or external uses.

2. Predictable Anchors, Flexible Fill: High-frequency, high-value uses (e.g., Early Education, fitness classes, ceramics programming) serve as predictable anchors, while flexible spaces absorb variable demand.

3. Centralized Control: All scheduling decisions are centralized under City authority to ensure alignment with staffing, security, and facility operations.

4. Equitable Access: Scheduling practices must ensure that no single user group monopolizes prime time access at the expense of broader community use.

5. Operational Feasibility: Scheduling must align with realistic staffing levels, setup and breakdown times, custodial capacity, and Manager-On-Duty coverage.

Foster City, California
32 FACILITY OPERATING CONTEXT
FCCC operates under a controlled access “library model,” meaning:
• Public commons are open during operating hours.
• Program and specialty rooms remain locked unless scheduled. • All access, unlocking, and oversight are managed by City staff. • A Manager-On-Duty (MOD) is present during all public open hours.

This model enables a high level of concurrent activity while maintaining safety, accountability, and customer service consistency.

SPACE TYPOLOGIES AND UTILIZATION INTENT
For scheduling purposes, FCCC spaces fall into four functional categories:

6.4.1 . ANCHOR PROGRAM SPACES
These spaces have regular, predictable schedules and form the backbone of daily utilization.

EXAMPLES
• Early Education classrooms
• Ceramics studio
• Fitness studios
• Senior lounge (during programmed hours)

UTILIZATION INTENT
• Scheduled primarily during weekday daytime and early evening hours. • Operated either by City staff or private partners under City oversight. • Limited availability for rentals due to specialized equipment or best practice operational requirements.

SCHEDULING PRIORITY
High: these uses establish the baseline schedule around which other uses are layered.

Community Center Business Operations Plan
33 6.4.2 . FLEXIBLE PROGRAM ROOMS
These spaces are designed to accommodate multiple program types and shift throughout the day.

EXAMPLES
• Multipurpose activity rooms
• Medium activity rooms
• Arts and enrichment rooms
• Conference and meeting rooms

UTILIZATION INTENT
• Morning and daytime: City programs, seniors, enrichment, camps. • Late afternoon and evening: Youth, adults, fitness, and rentals. • Weekend: Mix of programs, birthday parties, meetings, and community use.

SCHEDULING PRIORITY
Medium to High: City programs first, followed by rentals and partner-supported uses.

6.4.3 EVENT AND RENTAL SPACES
These spaces support larger gatherings and revenue-generating uses.

EXAMPLES
• Event hall and divisible event spaces
• Event lobby and pre-function areas
• Balcony terrace

UTILIZATION INTENT
• Reserved in blocks to support setup, event duration, and teardown. • Evening and weekend-heavy demand.
• Limited weekday daytime use to preserve flexibility.

SCHEDULING PRIORITY
• City events and civic functions first.
• Fee-based rentals next.
• Private events are subject to staffing and operational capacity.

Foster City, California
34 6.4.4 SUPPORT AND ACTIVATION SPACES
These spaces enhance the overall experience but do not drive scheduling independently.

EXAMPLES
• Lobby and commons
• Café
• Community lounge

UTILIZATION INTENT
• Remain open and activated during public hours.
• Café hours aligned with building hours and event demand. • Lounge spaces flex between informal use and scheduled meetings.

SCHEDULING PRIORITY
Managed indirectly through building hours and adjacent space use.

SCHEDULING HIERARCHY AND PRIORITY ORDER
To manage competing demand, FCCC scheduling follows a defined hierarchy:

1. City-delivered Parks and Recreation programs

2. City-sponsored events and civic uses

3. Contracted private partner operations (within assigned spaces)

4. Recurring community group reservations

5. One-time rentals and private events
This hierarchy ensures mission alignment while still supporting revenue generation.

COORDINATION WITH PRIVATE- PUBLIC PARTNER OPERATIONS
Private partners (Early Education, Ceramics Studio, Café) operate under defined operating windows and space assignments, but do not control scheduling outside their designated areas.

Key coordination principles include:
• City retains final scheduling authority.
• Private partner schedules are treated as standing allocations, not exclusive control. • Adjustments for special events, maintenance, or emergencies are made by the City. • Event activity may require coordination with café and ceramics operators but does not override City priorities.

This approach ensures private operations enhance FCCC without constraining overall flexibility.

Community Center Business Operations Plan
35 DAILY, WEEKLY, AND SEASONAL SCHEDULING PATTERNS

6.7.1 WEEKDAY PATTERNS
• Morning to early afternoon dominated by Early Education, seniors, enrichment, and fitness. • Late afternoon and evening shift to youth, adult programs, and rentals. • Café supports steady daytime demand with evening peaks tied to programs.

6.7.2 WEEKEND PATTERNS
• Heavier emphasis on events, rentals, tournaments, birthday parties, and family programming. • Increased demand for event hall, multipurpose rooms, and café services. • Reduced Early Education activity provides flexibility for special uses.

6.7.3 SEASONAL VARIABILITY
• Summer: Camps, youth programs, increased daytime utilization. • Fall/Winter: Higher evening and weekend demand.
• Holidays: Special events and modified schedules coordinated centrally.

UTILIZATION TARGETS AND PERFORMANCE MONITORING
To ensure spaces are being used effectively, FCCC will track:
• Utilization rates by room type and time of day.
• Peak vs. off-peak demand patterns.
• Program fill rates and waitlists.
• Rental conversion rates and unmet demand.
• Conflicts or cancellations due to staffing or set-up constraints.

These metrics will inform future adjustments to hours, staffing, pricing, and program mix.

Foster City, California
36 SPACE SCHEDULING - EXAMPLE

6.9.1 STRATEGIC FRAMEWORK FOR YEAR -ROUND SCHEDULING
FCCC scheduling must recognize that demand varies significantly by season, day of week, and time of day. The following seasonal patterns will guide scheduling decisions:
• School-Year Periods (Fall–Winter–Spring): High weekday demand during after-school and evening hours for youth, family, and adult programs; consistent daytime demand for Early Education, Active aging, fitness, ceramics, and enrichment. • Summer: High daytime utilization driven by camps, youth programs, and Early Education alternatives; evenings and weekends dominated by events, rentals, and cultural gatherings. • Shoulder Periods: Ideal windows for pilot programs, instructor-based rentals, professional development, and preventive maintenance rotations.

Three principles guide this framework:

1. Diversify Dayparts: Every major program room should be scheduled in at least two daily blocks (morning, midday, afternoon, evening) to avoid underutilization.

2. Rotate Uses Seasonally: Rooms should serve different primary audiences throughout the year, reflecting demographic needs and program demand.

3. Integrate Operations and Partnerships: Scheduling must be coordinated with staffing coverage, Manager-On-Duty presence, custodial capacity, and private partner operations.

6.9.2 EVENT SPACES (DIVISIBLE EVENT HALL + EVENT LOBBY) - EXAMPLE The FCCC Event Hall is the facility’s primary rental and civic gathering space, supporting weddings, cultural celebrations, City events, and community functions. Its divisibility allows simultaneous events or mixed-use programming.

Daypart Winter Spring Summer Fall
Morning Senior socials; civic briefings Corporate meetings; trainings Event setup / prep Senior
gatherings
Midday Community luncheons; City
meetings Workforce seminars Wedding prep;
rentals
Cultural
programs
Afternoon Youth showcases; arts
programs Community events Private rentals City meetings Evening Cultural celebrations;
banquets Community fundraisers Weddings; large
receptions Cultural nights

Rental availability should be formalized into predictable evening and weekend blocks to ensure reliable revenue while preserving daytime community access. Partial-space rentals and weekday discounts should be used to increase utilization without displacing City programs.

Community Center Business Operations Plan
37 6.9.3 MULTIPURPOSE ACTIVITY ROOMS AND ARTS SPACES - EXAMPLE These rooms represent the FCCC’s flexibility core, supporting enrichment, fitness, youth programs, arts, meetings, and rentals.

Daypart Winter Spring Summer Fall
Morning Active aging fitness; arts Adult enrichment Camp rotations Active aging Midday Classes; workshops Early Education overflow Youth camps Adult learning Afternoon After-school programs Youth programs Camps After-school Evening Adult fitness; rentals Community meetings Family programs Classes / rentals

These spaces should rarely sit idle. Instructor -based rentals and short -term partnerships can fill low - demand dayparts without increasing City staffing costs.

6.9.4 FITNESS AND MOVEMENT STUDIOS - EXAMPLE
Fitness studios are among the highest- demand spaces, reinforced by findings from the 2025 Parks and Recreation Master Plan showing above-average interest in wellness, yoga, Pilates, and strength training.

Daypart Winter Spring Summer Fall
Morning Senior wellness Adult barre Youth fitness camps Senior mobility Midday Open studio Instructor rentals Youth programs Adult training Afternoon Youth movement After-school fitness Camps Youth classes Evening Adult group fitness Zumba / Pilates Evening fitness Peak adult use

Annual instructor agreements, revenue-sharing classes, and off-peak rentals should be used strategically to expand offerings and increase utilization.

6.9.5 CERAMICS STUDIO (PRIVATE OPERATOR) - EXAMPLE
The Ceramics Studio functions as a program anchor, with predictable weekday and evening utilization managed by a private operator under City scheduling authority.

Daypart Winter Spring Summer Fall
Morning Adult classes Adult classes Youth camps Adult classes Midday Open studio Open studio Camp use Open studio
Afternoon Youth classes Youth classes Camps Youth classes Evening Adult workshops Adult classes Family workshops Adult classes Foster City, California
38 The ceramics schedule establishes a baseline that supports predictable staffing and equipment use while integrating with broader FCCC operations.

6.9.6 EARLY EDUCATION CLASSROOM (PRIVATE OPERATOR) - EXAMPLE The Early Education provides consistent weekday daytime activation, anchoring utilization and supporting families.

Daypart Winter Spring Summer Fall
Morning Early Education Early Education Early learning camps Early Education Midday Cleanup / prep Cleanup / prep Family play Cleanup / prep Afternoon Family engagement Family engagement Youth enrichment Parent-child Evening Closed Closed Occasional family events Closed

The Early Education strengthens weekday utilization while remaining operationally contained and predictable.

6.9.7 S ENIOR LOUNGE - EXAMPLE
The Senior Lounge supports Active aging and informal socialization, primarily during daytime hours.

Daypart Winter Spring Summer Fall
Morning Coffee socials Games Reduced use Social café
Midday Lunch programs Wellness Minimal use Arts / cards Afternoon Clubs Partner programs Excursions Social groups Evening Community use Community use Community Use Community use

During off-peak periods, the lounge can function as a “Community Living Room” for informal use.

6.9.8 LOBBY, COMMONS, AND CAFÉ
The lobby and café are continuously activated during public hours and scale with event activity.

The café’s operating hours should flex with program and event demand, reinforcing FCCC as a social hub without dictating scheduling priorities.

Community Center Business Operations Plan
39 OPERATIONAL COORDINATION AND IMPLEMENTATION
Action Timeline Lead Outcome
Implement centralized scheduling
software Pre-opening Recreation Manager Unified calendar Establish quarterly utilization reviews Year 1 Facility Manager Data-driven adjustments
Formalize rental blocks and pricing tiers Year 1 Recreation Supervisor Predictable revenue
Launch seasonal rotation scheduling Opening
year
Program
Coordinators Broader access
Integrate private partner schedules Pre-opening Facility Manager Operational alignment

SUMMARY
The FCCC is operated as a controlled-access, multi-use facility that must balance City programs, private partner operations, rentals, and community events within a limited footprint. Space utilization is therefore intentional, centralized, and mission driven.

Scheduling prioritizes City-delivered programs and civic uses, with predictable anchor activities ( Early Education, fitness, ceramics, Active aging ) establishing the baseline schedule and flexible spaces absorbing variable demand. All scheduling decisions remain under City authority to ensure equitable access, operational feasibility, and consistent staffing and security.

Utilization varies by daypart and season: weekdays emphasize daytime Early Education , seniors, enrichment, and fitness with evening youth and adult programs, while weekends and summers focus on events, rentals, and family activities. Private partners operate within defined windows and assigned spaces and do not control facility-wide scheduling.

Overall, this framework ensures FCCC maximizes use of available space, supports revenue -generating activities, and maintains high service quality without compromising public access or operational control.

Foster City, California
40 CHAPTER SEVEN - STAFFING FRAMEWORK

STAFFING ASSESSMENT CONTEXT AND PURPOSE
The staffing assessment presented in this chapter reflects an analysis of existing staffing levels and allocations historically used to operate the former Recreation Center, adjusted to reflect the expanded scale, complexity, and operating model of the new FCCC.

Rather than starting from a blank slate, the City reviewed legacy staffing assignments, percentage allocations, and part-time coverage that supported the prior facility. These positions were then cross- referenced against the operational assumptions established for the new FCCC, including extended public hours, a controlled access “library model,” increased program concurrency, private partner operations (Early Education, ceramics, café), higher event and rental activity, and elevated customer service expectations.

This approach ensures that staffing recommendations are grounded in Foster City’s operational history, while clearly identifying where additional coverage, reallocation, or refinement is required to fully support the new facility. The resulting model relies on a hybrid staffing approach, combining dedicated full-time positions, shared Citywide roles with partial allocation, and flexible part-time and seasonal staff to align labor resources with actual demand patterns.

STAFFING ADEQUACY AND RECOMMENDATIONS
When evaluated against the FCCC operating model, existing staffing levels of approximately 9.7 FTE are generally appropriate for core program delivery and daily operations. However, when the Lagoon Event Hall is treated as a dedicated operating enterprise, an additional full-time position is warranted to ensure service quality, accountability, and revenue performance.

7.2.1 ADDITION OF A DEDICATED RENTAL COORDINATOR
To fully support the Event Hall’s role as a business within the business, this plan recommends the creation of a new full-time position titled Rental Coordinator. This role provides focused leadership for all rental- based activity, including the Lagoon Event Hall and supporting rental spaces, and resolves the operational risk created by splitting high-touch event responsibilities across multiple generalist positions.

7.2.2 RECOMMENDED ADJUSTMENT S

ADD NEW FULL- TIME RENTAL COORDINATOR POSITION
Establish one (1) full -time Rental Coordinator position dedicated to overseeing FCCC rentals, with primary responsibility for the Lagoon Event Hall.

Core responsibilities include:
• Event Hall sales, booking, pricing, and calendar management • Client relationship management from inquiry through close-out • Oversight of event logistics, policies, workflows, and branding • Coordination with approved caterers and external vendors • Onsite or on-call presence for high-profile events
• Collaboration with custodial and setup crews to ensure hospitality-level standards

Community Center Business Operations Plan
41 Justification:
• Aligns staffing with the adopted assumption that the Event Hall operates as a dedicated enterprise
• Supports hospitality-level service expectations and premium market positioning • Protects revenue generation, customer satisfaction, and City brand • Prevents dilution of responsibility currently borne by general Recreation staff

ADD BUILDING SERVICES COORDINAT ION STAFF CAPACITY
Rather than adding additional building services coordinator positions, reinstate:
• 30-hour Building Services Coordinator position
This position will support:
• Event setup and teardown
• Coordination with the Rental Coordinator and private partners • Asset protection and preventive maintenance

ADD RECREATION PROGRAMMING/SERVICES STAFF CAPACITY
To support an increase in recreation programming and services associated with contracted services and rentals, it is recommended that the following staff be added:
• Add 0.75 FTE of Recreation Specialist position (2-30 hour per week staff)

ADD ADMINISTRATIVE/CUSTOMER SERVICE STAFF C APACITY
Rather than adding additional administrative positions, reinstate:
• 30-hour Office Assistant I
to support evenings, weekends, peak registration periods, and rental processing.

FORMALIZE MANAGER -ON-DUTY (MOD) COVERAGE
MOD responsibilities should be formally assigned to the following positions to ensure consistent operational oversight whenever the facility is open.
• Recreation Manager
• Rental Coordinator
• Recreation Coordinators
• Building Services Coordinators
• Recreation Specialist

Foster City, California
42 STAFFING NEED SUMMARY
* PLEASE NOTE: For most full-time employees, only a portion of their annual labor hours is assumed to be allocated to FCCC operations.
** PLEASE NOTE: Full-Time Equivalent (FTE) = 11.27 (23,442 annual labor hours/ 2,080 labor hours per FTE)

STAFFING SUMMARY
With the addition of a dedicated Rental Coordinator, the FCCC staffing model transitions from a shared responsibility approach to a clearly defined enterprise structure for rentals and events. This represents a strategic and intentional expansion. With the recommended refinements, the staffing framework:
• Fully supports the FCCC’s controlled-access operating model • Properly staffs the Lagoon Event Hall as a hospitality-driven enterprise • Provides adequate coverage across all dayparts and seasons • Enables concurrent programming, rentals, and events without staff overload • Maintains fiscal discipline while protecting service quality and revenue • Staffing levels should continue to be reassessed after the first full year of operation to reflect actual utilization and event demand.

Position Existing or New Full or Part-time
Percentage of Time/Cost
Allocated to FCCC
Operations
Annual Labor Hour Allocation
to FCCC Operations Timing
ADMINISTRATIVE ASSISTANT I Existing Full-time 60% 1,248 Immediate ADMINISTRATIVE ASSISTANT II Existing Full-time 75% 1,560 Immediate BLDG SERVICES COORDINATOR Existing Full-time 70% 1,456 Immediate MANAGEMENT ANALYST Existing Full-time 45% 936 Immediate OFFICE ASSISTANT I Existing Full-time 30% 624 Immediate PARKS & RECREATION DIRECTOR Existing Full-time 30% 624 Immediate RECREATION COORDINATOR II - (Contract classes, Seniors) Existing Full-time 65% 1,352 Immediate RECREATION COORDINATOR II - (Facility rentals) Existing Full-time 50% 1,040 Immediate RECREATION MANAGER Existing Full-time 60% 1,248 Immediate RENTAL COORDINATOR NEW Full-time 100% 2,080 Immediate
RECREATION SPECIALIST NEW Part-time 100% 1,560 Immediate BUILDING SERVICE COORDINATOR Existing Part-time 100% 1,560 Immediate OFFICE ASSISTANT I Existing Part-time 100% 1,560 Immediate BUILDING SERVICE ASSISTANTS Existing Part-time 100% 6,594 Immediate 23,442TOTALS

Community Center Business Operations Plan
43 CHAPTER EIGHT - FINANCIAL PLAN

FINANCIAL ASSUMPTIONS

8.1.1 GENERAL ASSUMPTIONS
The following assumptions establish the foundation for the FCCC financial plan. They define the operating philosophy, growth expectations, and resource allocations that guide the facility’s performance model.

These assumptions also provide flexibility —allowing future revisions to occur without undermining the plan’s in tegrity—by clarifying how changes in pricing, participation, or operations influence overall financial outcomes.

All projections assume continued full operation of the FCCC as the City’s central indoor recreation hub, supported by coordinated staffing, integrated marketing, and programmatic alignment with community needs.

8.1.2 PRICING ASSUMPTIONS
• All pricing reflects alignment with City Policy, consistent with market trends and local affordability benchmarks.
• Fees are established using the Classification of Services and Cost Recovery Framework, ensuring pricing aligns with the benefit derived by the participant (community, individual, or value - added).
• All rentals fees will follow category -based pricing for consistency, equity, and alignment with City policy.
• Price adjustments are evaluated annually against inflation, peer comparisons, and participation data to ensure sustained value and cost recovery.

8.1.3 GENERAL EXPENSE AND REVENUE ASSUMPTIONS
• FY 2027-28 serves as the baseline operating year, representing a n operating environment with implemented scheduling and staffing recommendations.
• Cost recovery targets are based on forecasted participation levels, market- based pricing, and efficient use of facility resources.
• If additional cost recovery is required, operational expenses, program efficiencies, or pricing adjustments will be analyzed and recalibrated.
• All financial projections are based on assumptions and calculations developed within the accompanying Excel pro forma model.
• The pro forma assumes strong lead -in marketing and community engagement to maintain enrollment and rental targets through consistent year -round programming and improved scheduling efficiency.

Foster City, California
44 8.1.4 OPERATING GROWTH ASSUMPTIONS
Operating and growth assumptions are based on projected increases by expenditure and revenue category as outlined below:

Category Annual Growth
Rate Primary Drivers
Revenues +4.0% Growth in memberships, expanded rentals, and participation- driven program revenues
Personnel +3.0% Inflation, labor competitiveness, and benefits volatility Supplies +3.0% Inflation and consumable materials
Services +3.0% Energy, contracted services, ISF, and technology costs

LAGOON EVENT HALL FINANCIAL ASSUMPTIONS AND RISK SENSITIVITY The Lagoon Event Hall is a central component of the FCCC’s operating and financial model. Given its role as the primary revenue-generating element of the facility, it is essential that financial assumptions are explicit and conservative.

The assumptions in this Business Operations Plan are intentionally designed to:
• Avoid reliance on optimistic utilization scenarios
• Protect the General Fund from downside risk
• Support predictable, contract-based revenue
• Ensure that operational costs scale with use
The Event Hall is not modeled to “carry” the facility financially. Instead, it is structured to meaningfully offset operating costs while remaining resilient under variable demand conditions.

PLEASE NOTE: DETAILED MARKET, PRICING AND REVENUE ASSUMPTIONS for the Lagoon Event Hall Operations can be found in Appendix A of this document

8.2.1 CORE UTILIZATION ASSUMPTIONS
Event Hall revenue projections are based on moderate, achievable utilization, not maximum capacity.

Key assumptions include:
• Primary rental demand concentrated on evenings and weekends • Limited weekday daytime use, preserving flexibility for City and civic functions • A mix of full-hall and partial-hall rentals
• Defined setup, event, and teardown windows that limit overbooking The model does not assume daily rentals or continuous weekend saturation. Utilization assumptions reflect:

Community Center Business Operations Plan
45 • Foster City’s population size and regional market
• Comparable municipal event venues
• The City’s intent to prioritize service quality and operational control over volume

8.2.2 PRICING AND REVENUE STRUCTURE
Pricing assumptions are grounded in:
• Market-appropriate rates for premium municipal event space • Configuration-based pricing tied to room size and capacity • Separate charges for staffing, custodial services, security, and extended hours • Mandatory deposits and advance payments
All direct event-related operating costs are structured as pass-through charges, ensuring that increased utilization does not proportionally increase General Fund exposure. This approach separates:
• Base facility revenue, which supports overall operations • Event-specific costs, which are recovered directly from renters

8.2.3 COST RECOVERY EXPECTATIONS
The Event Hall is expected to materially outperform traditional recreation programming in terms of cost recovery. By FY 2027-28,
• Event Hall operations represent the single largest revenue source within the Community Center • Net revenues contribute meaningfully to offsetting overall facility operating costs • Financial performance is driven by pricing discipline and cost containment rather than volume alone
Importantly, the Event Hall is not required to subsidize other facility functions, nor is it assumed to grow revenue through aggressive discounting or exception-based pricing.

8.2.4 RISK SENSITIVITY AND DOWNSIDE PROTECTION
The Event Hall financial model has been evaluated for sensitivity to lower-than-expected utilization. Key risk mitigation features include:
• Contract-based revenue secured in advance of events
• Deposits and cancellation policies that protect against last-minute revenue loss • Staffing models that scale with confirmed bookings
• Pass-through recovery of variable operating costs
• Defined authority for staff to decline bookings that cannot be supported operationally If utilization falls below projections:
• Variable costs decline proportionally
• Fixed staffing and overhead remain aligned with baseline facility operations Foster City, California
46 • The General Fund exposure increases modestly, but within anticipated operating ranges The six-year pro forma reflects a gradual cost recovery increase over time driven by inflation and cost growth, not over-reliance on Event Hall revenue growth.

8.2.5 AVOIDANCE OF STRUCTURAL RISK
This Business Operations Plan intentionally avoids several common risk factors associated with municipal event venues:
• No reliance on speculative or walk-in event demand
• No assumption of continuous weekend saturation
• No dependence on alcohol sales or concession revenue
• No informal discounting to “fill the calendar”
• No operational dependence on external vendors for core oversight Revenue performance is therefore driven by policy, discipline, and management, not market volatility.

8.2.6 RELATIONSHIP TO OVERALL FACILITY FINANCIAL PERFORMANCE Event Hall revenue is integrated into the broader Community Center financial framework, which includes:
• Program and service revenue
• Private public partnership agreements
• General facility rentals
Even under conservative Event Hall performance scenarios, the Community Center’s overall cost recovery remains within the range identified as appropriate for this facility type and community context. This confirms that:
• The facility is not financially fragile
• Event Hall performance enhances sustainability but does not create dependency • The City retains flexibility to adjust policies, pricing, and scheduling over time

8.2.7 BOTTOM- LINE FINANCIAL ASSESSMENT
The Lagoon Event Hall financial assumptions are intentionally conservative, contract- based, and risk - aware.

This model:
• Supports predictable revenue generation
• Scales costs with utilization
• Protects the General Fund from outsized downside exposure • Reinforces fiscal discipline and operational control
The Event Hall strengthens the financial performance of the FCCC without compromising public purpose, service quality, or long-term sustainability.

Community Center Business Operations Plan
47 FORMER RECREATION CENTER ACTUAL FINANCIAL PERFORMANCE (FY2023 -24)
As noted below, the financial performance of the former Recreation Center in its final year of operation (FY2023-24) reflects a $2.3 million operating loss and a cost recovery of 22%.

Please Note: Program revenue includes city-self operated ceramics program ($97,000)

Foster City, California
48 NEW FCCC PROJECTED FINANCIAL PERFORAMNCE (FY2027 -28) As noted below, the projected financial performance of the new FCCC in its first full year of operation (FY2027-28) reflects a $1.591 million operating loss and a cost recovery of 57%.

Community Center Business Operations Plan
49 SIX -YEAR OPERATING PRO FORMA AND COST RECOVERY TRAJECTORY FY 2027–28 through FY 2032–33

8.5.1 PRO FORMA STRUCTURE AND ASSUMPTIONS APPLIED BASELINE (FY 2027– 28) • Revenue baseline reflects:
o City-delivered programs
o Private-Public Partnerships (Expected scenario)
o General facility rentals
o Lagoon Event Hall enterprise
• Expenditure baseline reflects:
o Fully burdened FCCC staffing plan
o Program supplies and contracts
o Services, utilities, ISFs, and facility operations
o Event Hall non-personnel enterprise costs

8.5.2 S IX -YEAR FCCC OPERATING PRO FORMA
The table below presents annual revenues, expenditures, net operating position, and cost recovery for FY 2027–28 through FY 2032–33.

Pro Forma Revenues & Expenditures
Foster City Community Center
BASELINE: REVENUES AND EXPENDITURES
Revenues 1st Year 2nd Year 3r d Year 4th Year 5th Year 6th Year Programs $162,232 $168,721 $175,470 $182,489 $189,788 $197,380 General Facility Rentals $215,000 $223,600 $232,544 $241,846 $251,520 $261,580 General Facility Rentals $212,850 $221,364 $230,219 $239,427 $249,004 $258,965 Lagoon Event Hall Rentals $1,218,000 $1,266,720 $1,317,389 $1,370,084 $1,424,888 $1,481,883 Sponsorships $25,000 $26,000 $27,040 $28,122 $29,246 $30,416 Private Public Partnerships $282,500 $293,800 $305,552 $317,774 $330,485 $343,704 Total $2,115,582 $2,200,205 $2,288,213 $2,379,742 $2,474,932 $2,573,929 Expenditures 1st Year 2nd Year 3r d Year 4th Year 5th Year 6th Year Personnel Services $1,454,013 $1,497,634 $1,542, 563 $1,588,840 $1,636,505 $1,685,600 Supplies $406,755 $418,958 $431,526 $444,472 $457,806 $471,541 Services and Charges $1,642,317 $1,691,587 $1,742,334 $1,794,604 $1,848,442 $1,903,896 Lagoon Event Hall Pass Through Charges $204,000 $210,120 $216,424 $222,916 $229,604 $236,492 Total $3,707,085 $3,818,298 $3,932,847 $4,050,832 $4,172,357 $4,297,528 Annual General Fund Subsidy $1,591,503 $1,618,093 $1,644,633 $1,671,090 $1,697,425 $1,723,599 Cost Recovery 57% 58% 58% 59% 59% 60%
Foster City, California
50 TAKEAWAYS
• Revenues grow at 4% annually, driven by participation, pricing discipline, rental optimization and consumer price indices.
• Expenditures grow slower than revenues due to:
o Labor cost escalation is assumed to be 3% annually
o City cost control measures for internal service funds minimize unforeseen spikes for these expenditures.
• As a result, cost recovery gradually increases.

8.5.3 FOSTER CITY COMMUNITY CENTER FINANCIAL PERFORMANCE COMPARISON The below table compares the actual financial performance of the last fiscal year of operation of the former Recreation Center with the projected financial performance of the first full fiscal year of operation for the new FCCC.

FORMER FOSTER CITY

RECREATION CENTER

NEW FOSTER CITY

COMMUNITY CENTER
FISCAL YEAR 2023-24 FISCAL YEAR 2027-28

NET ANNUAL
REVENUE/(LOSS) ($2,325,238) ($1,591,503) $733,735 General fund subsidy reduction of 32% Annual Cost Recovery 22% 57% 36% Increase of 36%

REVENUE SUMMARY
Personnel Services
Supplies
Services and Charges

DELTA EXPLANATION

Community Center Business Operations Plan
51 TAKEAWAYS
• Dramatic improvement in cost recovery - The new facility is projected to nearly double cost recovery, increasing from 22% to 57%, signaling a much stronger alignment between revenues and operating costs.
• Revenue performance scales meaningfully with the new facility - Total revenue is projected to increase by 231%, demonstrating that the new facility materially expands the City’s ability to generate earned income through programs, rentals, and services. • General fund subsidy normalizes despite significant expansion - Even with substantially higher operating expenditures, the general fund subsidy decreases by nearly $750,000 annually indicating that incremental costs are being offset more efficiently.

FIRST YEAR REVENUE MODEL
Fiscal Year 2027–28 (July 1, 2027 – June 30, 2028)

8.6.1 PURPOSE AND MODELING STANDARD
This revenue model represents the first fiscal year of full operations for the FCCC. Revenues are derived from how the building is used, who operates each function, and what financial mechanism applies, rather than from historical carry-forward totals.

The model explicitly distinguishes between:
• City-delivered programs
• Private-public partnership operations (Chapter 5)
• General facility rentals
• The Lagoon Event Hall enterprise (Appendix A)

Foster City, California
52 8.6.2 PROGRAM REVENUE
This category includes only programs directly delivered by the City. It explicitly excludes ceramics programming, which is delivered through a private partnership under Chapter 9.

Programs are scheduled within classrooms, studios, and multipurpose rooms at participation levels that reflect typical enrollment rather than peak demand.

Please Note: These programs and fees are based on historical data. Actual offerings and pricing at the new facility may vary.

Program Fee per
Participant
Sessions per
Year
Avg. Participants per
Session
Annual
Revenue
Art and Crafts 101 $40 4 50 $8,000
Adult Home Buying /
Selling $20 4 10 $800
Adult Karate $227 8 16 $29,056
Adult Line Dancing $64 8 40 $20,480
Youth Communication
Academy $270 4 18 $19,440
Youth Karate $227 8 26 $47,216
Mad Science Campe $375 1 16 $6,000
Drop-In Table Tennis $3 208 10 $6,240
Program and Event
Sponsorships $25,000
Bridge $0 104 20 $0
Pedro $0 104 20 $0
Knitting $0 52 15 $0
TOTAL $162,232

KEY TAKEAWAYS
• Participation assumptions reflect average enrollment, not waitlist conditions. • Free senior and social programs are intentionally preserved for community access. • Revenue expectations are conservative and capacity aware.

Community Center Business Operations Plan
53 8.6.3 PRIVATE - PUBLIC PARTNERSHIP OPERATIONS
These revenues are derived directly and exclusively from Chapter 5 of the FCCC Business Operations Plan using the expected scenario defined by policy.

The City:
• Retains scheduling, access, and pricing guardrails
• Avoids staffing, compliance, and operational risk
• Receives contractually defined revenue
Component Value
Ceramics Studio $117,500
Early Education $75,000
Cafe $90,000
Total City Revenue – Private-Public Partnerships $282,500

KEY TAKEAWAYS
• Partnership revenue is structural and contract-based, not discretionary. • Ceramics class revenue is intentionally removed from City program revenue to avoid double counting.

8.6.4 GENERAL FACILITY RENTALS (NON –EVENT HALL)
This category includes rentals of:
• Classrooms
• Multipurpose rooms
• Studios
It explicitly excludes:
• Lagoon Event Hall rentals
• Partnership-controlled spaces

Foster City, California
54 Rental assumptions are derived from:
• Available non-program hours
• Evening and weekend demand
Metric Value
Average Hourly Rate $49.50
Annual Rentable Hours 4,300
Annual Non-Lagoon Event Hall Rental Revenue $212,850

KEY TAKEAWAYS
• Hours reflect realistic availability without displacing programs. • Rates align with historic guidance and policy expectations. • No peak-demand inflation is assumed.

8.6.5 LAGOON EVENT HALL OPERATIONS
The Lagoon Event Hall operates as a distinct enterprise cost and revenue center.

Category Annual Revenue
Base Rentals $903,500
Kitchen/Balcony/Terrace Rentals $110,500
*Security (Pass-Through) $204,000
Total Gross Revenue $1,218,000

*Please Note: Subject to new security policy to be adopted by the City of Foster City.

KEY TAKEAWAYS
• Revenue is configuration-based, not aspirational.
• Security is treated as pass-through revenue consistent with cost treatment. • The Event Hall materially improves FCCC financial sustainability.

PLEASE NOTE: D etailed Market, pricing and revenue assumptions for the Lagoon Event Hall Operations can be found in Appendix A of this document

Community Center Business Operations Plan
55 8.6.6 TOTAL FCCC PROJECTED OPERATING REVENUE – FY 2027- 28

8.6.7 FINAL REVENUE TAKEAWAYS
• This revenue model is capacity-driven, policy-aligned, and audit-ready. • All partnership revenue is modeled exactly as detailed in the Expected Scenario in Chapter 5. • The Lagoon Event Hall is cl early positioned as the primary revenue engine, without overstating its role.

FIRST -YEAR OPERATING EXPENDITURE MODEL
Fiscal Year 2027–28 (July 1, 2027 – June 30, 2028)

8.7.1 PERSONNEL SERVICES
Personnel Services must reflect the staffing structure required to operate the new FCCC including Event Hall enterprise governance, controlled-access facility operations, and expanded scheduling intensity. The appropriate basis for FY 2027–28 is the City-provided fully burdened annual costs allocated to New Community Center Operations.

Position Existing or New Full or Part-time
Percentage of Time/Cost
Allocated to FCCC
Operations
Annual Labor Hour Allocation
to FCCC Operations
Annual Fully Burdened Cost
Allocation to FCCC Operating
Budget
ADMINISTRATIVE ASSISTANT I Existing Full-time 60 % 1,248 $92,587.20 ADMINISTRATIVE ASSISTANT II Existing Full-time 75 % 1,560 $130,983.00 BLDG SERVICES COORDINATOR Existing Full-time 70 % 1,456 $96,154.10 MANAGEMENT ANALYST Existing Full-time 45 % 936 $98,164.72 OFFICE ASSISTANT I Existing Full-time 30 % 624 $38,959.50 PARKS & RECREATION DIRECTOR Existing Full-time 30 % 624 $112,949.70 RECREATION COORDINATOR II - (Contract classes, Seniors) Existing Full-time 65 % 1,352 $112,323.90 RECREATION COORDINATOR II - (Facility rentals) Existing Full-time 50 % 1,040 $86,403.00 RECREATION MANAGER Existing Full-time 60 % 1,248 $151,845.00 RENTAL COORDINATOR NEW Full-time 10 0% 2,080 $172,806.00 RECREATION SPECIALIST NEW Part-time 10 0% 1,560 $103,683.60 BUILDING SERVICE COORDINATOR Existing Part-time 10 0% 1,560 $35,692.80 OFFICE ASSISTANT I Existing Part-time 10 0% 1,560 $70,590.00 BUILDING SERVICE ASSISTANTS Existing Part-time 10 0% 6,594 $150,870.72 23,442 $1,454,013.24TOTALS

NEW FOSTER CITY COMMUNITY CENTER
FISCAL YEAR 2027-28

REVENUE SUMMARY
Programs $162,232
After School Program - Contracted $215,000
General Facility Rentals $212,850
Lagoon Event Hall Rentals $1,218,000
Sponsorships $25,000
Private Public Partnerships $282,500
TOTAL REVENUES $2,115,582
Foster City, California
56 8.7.2 PROGRAM SUPPLIES AND CONTRACT SERVICES
Program Supplies and Contract Services represent the City’s cost to deliver City -operated programming (non-partnership). These costs are less sensitive to facility size than personnel and building ISF, but they will scale with utilization and program volume.

PROGRAM SUPPLIES AND CONTRACT SERVICES
Program supply/contract category FY 2027–28 annual
cost
Supplies (Adult + Senior + Youth program supplies, contract services, overhead allocations) $406,755

8.7.3 SERVICES, CHARGES, AND INTERNAL SERVICE FUNDS
Services and Charges are the largest fixed cost driver in most public facilities and typically increase materially in a new building due to:
• higher building maintenance and custodial intensity
• systems, utilities, IT and communications allocations • equipment replacement reserves and internal service fund charges

BUILDING -WIDE SERVICES AND CHARGES
Services and Charges category FY 2027–28 annual
cost
Services and Charges (Rec Admin + Facility Operations, ISFs, maintenance, overhead) $1,642,317.00

8.7.4 LAGOON EVENT HALL ENTERPRISE – NON -PERSONNEL DIRECT OPERATING COSTS The Event Hall is explicitly governed as a distinct enterprise and introduces variable costs that scale with:
• security staffing (pass-through)

EVENT HALL ENTERPRISE OPERATING COSTS (NON- PERSONNEL)
Event Hall cost component FY 2027–28 annual cost
Security Pass-Through Charges $204,000

Community Center Business Operations Plan
57 8.7.5 TOTAL PROJECTED FCCC OPERATING EXPENDITURES – FY 2027- 28 The table below consolidates all FY 2027–28 operating expenditures using only:
• the City-provided FY 2027–28 wage scale allocations
• the City-provided baseline costs

NEW FOSTER CITY COMMUNITY CENTER
FISCAL YEAR 2027-28

EXPENDITURE SUMMARY
$1,454,013
$406,755
$1,642,317
$2
04,000
TOTAL EXPENSES TOTAL EXPENSES $3,707,085
Personnel Services
Supplies
Lagoon Event Hall Pass Through Charges
Services and Charges

Foster City, California
58 CHAPTER NINE - CONCLUSION
The Foster City Community Center Business Operations Plan establishes a clear, defensible operating framework for a major civic investment that is intentionally scaled, financially disciplined, and aligned with Foster City’s demographic and market realities. The Plan confirms that the new Community Center is not designed as a high-hour, fitness-driven regional facility, but rather as a program- , rental-, and community-focused center operating within defined hours, staffing capacity, and fiscal constraints.

Operating at 66 hours per week, the facility balances accessibility with cost control, directly shaping staffing requirements, custodial standards, and utility expenses. Staffing assumptions are calibrated to this operating footprint and emphasize functional coverage, concurrency management, and professional oversight rather than volume-driven expansion. This approach supports consistent service delivery while avoiding structural overstaffing risks common in new facilities.

Financially, the Business Operations Plan positions the Community Center to outperform traditional municipal community centers through intentional revenue diversification, disciplined pricing, and strong rental demand, particularly within the Lagoon Event Hall. While the facility is not expected to achieve full cost recovery, its operating model targets meaningfully higher recovery performance than the former recreation center, supported by Foster City’s income profile, demand for premium space, and controlled operating hours.

Appendix A reinforces this enterprise approach by cl early defining governance, authority, risk management, and financial controls for the Lagoon Event Hall, ensuring that event operations function as a managed business line rather than an ad hoc public amenity. This clarity materially reduces financial and operational risk while protecting community access.

Taken together, this Business Operations Plan provides Foster City with a realistic, implementable, and performance-oriented roadmap. It ensures that residents will benefit from a vibrant, well- managed center offering programs, events, and spaces for the whole community.

Community Center Business Operations Plan
59 APPENDIX A – LAGOON EVENT HALL OPERATIONAL CONTEXT

PURPOSE, SCOPE, AND METHODOLOGY OF THIS APPENDIX
This appendix establishes the market, demand, and financial foundations for the Lagoon Event Hall at the FCCC. It is intended to support policy decisions related to pricing, utilization, and long-term financial sustainability.

This appendix is not a marketing document and is not intended to justify a predetermined outcome.

Instead, it documents:
• The market context in which the Event Hall will operate • The types of events that occur in this region, and how they are currently served • The role a public, civic event hall can realistically play in that market • The operational and financial implications that follow from those conditions Only after this foundation is established does the appendix address:
• Pricing structure
• Event volume assumptions
• Revenue expectations
• Sensitivity and risk

HOW THIS APPENDIX IS ORGANIZED
The appendix proceeds in a deliberate sequence:

1. Community and market context

2. Regional event and meeting landscape

3. Competitive substitution and segmentation

4. Role of a public civic event hall

5. Operational realities and capacity limits

6. Pricing policy and embedded-fee structure

7. Demand and utilization assumptions

8. Revenue model and minimum performance thresholds

9. Sensitivity analysis and management levers
This sequencing is intentional. Each section answers a question that must be resolved before the next section can be credibly evaluated.

Foster City, California
60 COMMUNITY AND MARKET CONTEXT

WHO THIS MARKET IS, HOW IT BEHAVES, AND WHY THAT MATTERS Event halls do not create demand on their own. They respond to existing social, institutional, and cultural behavior within a market. Understanding who lives in the area, how organizations function, and how events are typically hosted is a prerequisite to making credible assumptions about:
• Event frequency
• Event size
• Willingness to pay
• Sensitivity to pricing structure
For this reason, the analysis begins with the community and market context, before discussing the Event Hall or its pricing.

PRIMARY MARKET AREA DEFINITION
For planning purposes, the Lagoon Event Hall’s primary market area (50% of visitation) is defined as a roughly three-mile radius surrounding the FCCC.

This geography reflects:
• Typical travel tolerance for guests attending social, nonprofit, and civic events • Observed catchment patterns for comparable municipal event halls in similar Peninsula communities
• The point at which parking convenience, traffic conditions, and travel time begin to materially influence venue choice
This primary market area includes approximately 155,000 residents across Foster City and adjacent Peninsula communities.

While some events will draw attendees from beyond this area, the primary market definition captures the core demand base that drives repeat utilization and weekday bookings.

DEMOGRAPHIC PROFILE OF THE PRIMARY MARKET AREA
The table below summarizes key demographic characteristics of the primary market area relative to statewide averages. More important than the absolute values is what these indicators imply about event behavior and expectations.

Community Center Business Operations Plan
61 PRIMARY MARKET AREA DEMOGRAPHIC PROFILE (PLANNING REFERENCE) Indicator Primary Market
Area
California
Average Implications for Event Demand
Median household
income ~$149,000 ~$96,000
Indicates capacity to pay for high-quality
venues, but not indifference to value or
transparency
Bachelor’s degree
or higher ~57% ~36%
Associated with higher expectations for
professional management, clear pricing, and
predictable service
Asian population ~54% ~16% Strong demand for large family gatherings, cultural celebrations, and banquet-style events
Median age ~38 years ~37 years Balanced mix of family-oriented social events and institutional or professional use
Household
composition
Higher share of
family households Lower Drives weekend event demand and multi- generational gatherings

WHAT THESE DEMOGRAPHICS ACTUALLY MEAN IN PRACTICE
Demographics alone do not determine how facilities are used. However, in comparable Bay Area and Peninsula communities with similar profiles, several consistent event behavior patterns emerge:
• A high frequency of mid-size events, typically ranging from 100 to 300 guests • Regular use of event space by nonprofits, cultural organizations, and civic institutions, particularly on weekdays
• Strong demand for celebratory events such as weddings, anniversaries, milestone birthdays, and cultural holidays
• Preference for venues that allow custom catering, cultural food practices, and flexible alcohol policies
• Heightened sensitivity to hidden fees, paid parking, and mandatory bundled services These patterns are critical because they shape how users evaluate venue options. In this market, users tend to ask:
• “What is the total cost to host this event?”
• “How flexible is the venue with my vendors and cultural needs?” • “How easy will this be for my guests to attend?”
They are less focused on headline rental rates and more focused on overall experience and predictability.

Foster City, California
62 WILLINGNESS TO PA Y
While household incomes support premium pricing for high-quality space, this market also exhibits:
• Low tolerance for fragmented pricing
• Low tolerance for unnecessary bundling that inflates total cost • High expectations for clarity, professionalism, and ease of use This distinction explains why:
• Hotels can be perceived as expensive but still undesirable for many local events • Experience venues may be attractive once but not repeatedly • Civic venues that offer transparent, all-in pricing and flexibility perform well over time For a City-owned facility, this dynamic has direct implications for pricing structure and fee presentation, which are addressed later in this appendix.

IMPLICATIONS OF COMMUNITY CONTEXT FOR EVENT FACILITY PLANNING Based solely on community characteristics and observed behavior, before considering the Lagoon Event Hall itself, several implications are clear:

1. The market can support frequent, structured event activity, not just occasional large events.

2. Demand is strongest for mid-size, reservable venues rather than very large or very small spaces.

3. Users value predictability, transparency, and flexibility as much as physical quality.

4. Facilities that impose paid parking or rigid bundling face resistance, even when income levels are high.

These implications do not prescribe a specific facility or pricing approach. They establish the conditions any successful event venue must respond to in this market.

REGIONAL EVENT AND MEETING MARKET

PURPOSE OF THIS SECTION
This section defines the actual competitive set for the Lagoon Event Hall and explains how the regional event market allocates demand among nearby venues. It is designed to answer one practical question:

When a group is planning a 100 –400 guest event in the Foster City area, what venues do they really compare, and what makes them choose one over another?
This section:
• Identifies the primary competitor venues within roughly 12 miles • Classifies each venue by business model and event segments served • Describes venue-by-venue competitive strengths and constraints that shape substitution • Provides a summary matrix that can be used directly in the appendix

Community Center Business Operations Plan
63 This is intentionally more specific than a generic market narrative because later pricing and revenue assumptions must be grounded in real substitutes, not theoretical alternatives.

THE COMPETITIVE SET
Not every nearby venue is a true substitute. For Lagoon Event Hall’s target segment (mid -size events, 100–400 guests), the practical competitive set includes:

PRIMARY HOTEL COMPETITORS (BUNDLE + LODGING MODEL)
• Crowne Plaza Foster City
• Pullman San Francisco Bay (Redwood Shores)
• Hyatt Regency San Francisco Airport (Burlingame)
• Marriott San Mateo SFO Waterfront
• Embassy Suites by Hilton San Francisco Airport (Burlingame) PRIMARY CONFERENCE / EXPO COMPETITORS (SCALE + LOGISTICS MODEL) • South San Francisco Conference Center
• San Mateo County Event Center
PRIMARY EXPERIENCE COMPETITORS (AMBIENCE + PER- PERSON MODEL) • Hiller Aviation Museum (San Carlos)
• Domenico Winery (San Carlos)
• Fox Theatre (Redwood City)

SMALL- MEETING SUBSTITUTES
• Regus / WeWork and similar coworking meeting spaces (San Mateo area) This list is intentionally constrained to venues that are realistically considered by event organizers in this geography. It does not include restaurants, private clubs, or private residences, which can be substitutes for small gatherings but do not compete meaningfully for 150–400 guest events.

HOW EACH COMPETITOR INTERSECTS WITH LAGOON EVENT HALL DEMAND The Lagoon Event Hall is positioned to win events where decision drivers include:
• Total cost predictability (all-in cost)
• Guest parking convenience
• Catering and vendor flexibility (including cultural catering) • Divisible space (right-sizing for 100–300 guests)
• Civic brand and neutrality (public-facing venue)
• Repeat usability (annual events and recurring banquets) Competitors win when decision drivers shift toward:
• Lodging blocks and out-of-town guests
• Turnkey bundled execution with minimal user planning
Foster City, California
64 • Prestige, brand, or luxury experience positioning
• One-time novelty ambience
• Scale and logistics beyond 400 guests
The matrix below translates those general drivers into venue-specific competitive mechanics.

COMPETITIVE LANDSCAPE SUMMARY MATRIX (VENUE- BY-VENUE)
Planning Note: The “All -in Cost Index” is a normalized planning comparison for a typical 350 -guest banquet, where the Lagoon Event Hall is set at 100. It reflects how the market commonly behaves after accounting for bundling, service charges, and parking impacts. It is not intended to be a quote.

LAGOON EVENT HALL COMPETITIVE LANDSCAPE MATRIX (≤12 MILES) Venue Venue Category Ty pical Event Segments Captured Lagoon Event Hall Advantage Lagoon Event Hall (Foster City) Civic event hall
100–400 guest banquets, cultural events,
nonprofit fundraisers, local weddings, civic
meet
ings
Baseline
Crowne Plaza Foster City Full-service hotel Lodging-linked events, corporate banquets, larger ballroom events
Free parking, flexible vendors/catering,
predictable total cost
Pullman SF Bay (Redwood Shores) Resort-style hotel Upscale corporate retreats and social events
Comparable quality without resort pricing
and valet friction
Hyatt Regency SFO (Burlingame) Airport hotel La rge corporate events and banquets Waterfront civic setting, more community- friendly cost structure
Marriott SFO Waterfront (San Mateo) Large hotel ballroom Very large banquets and high-capacity events
Right-sized divisible space for 100–350
with lower total friction
Embassy Suites Burlingame Hotel Mid -size events near airport corridor Better guest access, flexible event production, predictable pricing
South SF Conference Center Conference venue Co rporate functions and formal banquets Comparable capacity with more civic appeal and parking simplicity
San Mateo Event Center Expo campus La rge-scale events and expos Better fit for under-400 events, easier event experience
Hiller Aviation Museum Experience venue Them ed fundraisers and special events Similar uniqueness (waterfront) with higher flexibility and repeatability
Domenico Winery (San Carlos) Winery/experience Ambience-driven social events, smaller receptions
Larger capacity, easier parking, more
flexible event structure
Fox Theatre (Redwood City) Theater venue Per formances + receptions True banquet hall flexibility and divisible layouts
Regus / WeWork (San Mateo) Coworking Sm all meetings and trainings Lagoon Hall becomes the “step-up” option when groups outgrow meeting rooms

Community Center Business Operations Plan
65 NORMALIZED ALL- IN COST INDEX (SPECIFIC TO THIS COMPETITIVE SET) The following index reflects typical market behavior for a 350 -guest banquet once parking and bundled services are included.
350 -GUEST ALL -IN COST INDEX (PLANNING REFERENCE)
Venue
All-In Cost Index
(Lagoon Event Hall
= 100)
Why the Index Runs Higher
Lagoon Event Hall 100 Transparent civic pricing baseline Hiller Aviation Museum 120 Experience pricing and per-person scaling South SF Conference
Center 130 Service-heavy conference operations and paid parking Crowne Plaza Foster
City 140
Bundling, service charges, and parking impacts
Domenico Winery 145 Capacity constraints and experience premiums Hyatt Regency SFO 150 Airport corridor hotel pricing + paid parking Embassy Suites
Burlingame 150 Bundled hotel model + parking constraints Marriott SFO
Waterfront 155 Premium scale and service pricing
Pullman SF Bay 160 Resort positioning and valet
Fox Theatre 160 Production environment and parking
San Mateo Event
Center 170
Campus overhead and scale mismatch

Interpretation:

This index supports an important point later in the appendix: Lagoon Event Hall is not competing to be the lowest- cost option in absolute terms; it competes as a high -value option in a market where comparable all-in costs frequently exceed civic hall pricing due to bundling and parking.

COMPETITIVE LANDSCAPE SUMMARY
This competitive landscape produces three implications that must be carried into later sections:

1. The Lagoon Event Hall’s competitive set is hotels and experience venues, not expo campuses.

2. Parking and bundling are the dominant drivers of all-in cost, and both tend to disadvantage hotels for locally attended events.

Foster City, California
66 3. Lagoon Event Hall is positioned strongest where events are:
o Locally attended
o Mid-size (100–350)
o Vendor-flexible and culturally diverse
o Repeatable (annual, recurring, institutional)
These are exactly the segments that generate stable weekday utilization and reduce reliance on Saturdays.

COMPETITIVE SUBSTITUTION AND MARKET CAPTURE FRAMEWORK

PURPOSE OF THIS SECTION
Having established the specific competitive landscape, this section translates that landscape into a substitution and capture framework. The goal is to move beyond general statements about competition and explicitly identify:
• Which event types the Lagoon Event Hall is structurally positioned to capture • Which event types it is structurally unlikely to capture, regardless of price • Which event types are price- and policy-sensitive swing segments This framework is critical because pricing, utilization, and revenue assumptions must be aligned to the segments the facility can realistically win, not to the total universe of events occurring in the region.

WHY SUBSTITUTION MATTERS MORE THAN MARKET SIZE
A common planning error is assuming that total regional demand equals potential facility utilization. In reality:
• Many events are pre-allocated to specific venue types due to structural needs • Only a subset of events ever enter a competitive decision set that includes a civic event hall • Revenue stability comes from repeatable, predictable segments, not occasional high-profile wins Accordingly, the question is not “How many events occur in the region?” but rather:
“Which events are realistically substitutable between the Lagoon Event Hall and other nearby venues?”

STRUCTURAL WIN, STRUCTURAL LOSS, AND SWING SEGMENTS
Based on the competitive mechanics outlined in A.3, event demand can be grouped into three categories:

1. Structural Wins – Events the Lagoon Event Hall is well-positioned to capture consistently

2. Structural Losses – Events the Lagoon Event Hall is unlikely to capture, even with aggressive pricing

3. Swing Segments – Events where capture depends on pricing, policies, and availability This segmentation reflects how buyers actually behave, not aspirational positioning.

Community Center Business Operations Plan
67 WIN VS. LOS E SCENARIOS

COMPETITIVE SUBSTITUTION FRAMEWORK BY EVENT TYPE
Event Type Typical
Size Primary Decision Drivers Likely Venue
Outcome Why
Local weddings (no
room block) 150–350 Parking, flexibility, total
cost, guest experience
Lagoon Event
Hall – Win
Free parking, divisible
space, vendor flexibility
Destination weddings
(room blocks required) 200–400 Lodging integration Hotels – Loss Structural lodging requirement
Cultural celebrations
and banquets
200–400 Catering flexibility,
capacity, parking
Lagoon Event
Hall – Win
Cultural accommodation
and scale
Nonprofit fundraising
galas 150–350 Budget control,
predictability
Lagoon Event
Hall – Win
Transparent pricing,
repeat usability
Corporate banquets
(single day, no
lodging)
150–300 Professional setting,
total cost
Lagoon Event
Hall – Win Value and accessibility
Corporate conferences
(multi-day) 150–500 Lodging, turnkey
services Hotels – Loss Structural lodging needs
Trade shows and expos 400+ Logistics, load-in Conference / Expo – Loss
Facility not designed for
scale
Civic and institutional
meetings
100–250 Cost control,
repeatability
Lagoon Event
Hall – Win
Predictable rates, civic
context
High-end brand
launches 100–300 Prestige, exclusivity
Hotels /
Experience –
Loss
Brand positioning
One-time novelty
events 150–300 Ambience Experience
venues – Loss Novelty-driven choice
Recurring regional
association banquets 150–300 Consistency, parking,
value
Lagoon Event
Hall – Win Repeat usability

Foster City, California
68 SEGMENT FREQUENCY AND REVENUE STABILITY
Not all event types occur with the same frequency. From a financial sustainability perspective, high- frequency segments matter more than high-profile segments.

EVENT SEGMENT FREQUENCY VS. STRATEGIC IMPORTANCE
Segment Category Frequency Revenue Stability Strategic Importance Cultural celebrations High High Core
Nonprofit fundraisers Moderate–High High Core
Civic and institutional meetings High Moderate Core
Local weddings Moderate High Core
Corporate banquets (single day) Moderate Moderate Supportive Destination weddings Low Low Non-core
Trade shows / expos Low High per event Non-core
Brand launches Low Low Non-core

Implication:

The Lagoon Event Hall’s financial model should be built around core segments that are frequent, repeatable, and structurally aligned with the facility, not around low-frequency prestige events.

CAPTURE RATE ASSUMPTIONS
The substitution analysis supports three important planning principles:

1. Do not assume full capture of all “eligible” events. Even in structural win segments, demand is shared among multiple venues.

2. Do not chase structural loss segments through discounting. Discounting to capture lodging- driven or prestige-driven events undermines pricing integrity without producing stable demand.

3. Focus on consistency, not peaks. Weekday and mid-size event capture drives long-term sustainability more than occasional Saturday sellouts.

These assumptions directly inform:
• Event volume assumptions
• Day-of-week distribution
• Configuration mix
• Pricing differentials between weekdays and weekends

Community Center Business Operations Plan
69 THE ROLE OF THE LAGOON EVENT HALL AS A PUBLIC CIVIC FACILITY

PURPOSE OF THIS SECTION
This section defines the intended role of the Lagoon Event Hall within that environment.

Clarifying this role is necessary before addressing staffing, pricing, utilization targets, or revenue expectations. Without a clear role definition, operational and financial decisions risk being evaluated against inappropriate comparisons, such as hotel ballrooms or conference centers.

WHY A CITY -OWNED EVENT HALL IS NEEDED IN THIS MARKET
The presence of numerous private event venues does not eliminate the need for a public civic event hall. Instead, it clarifies where the private market introduces limitations.

Private venues are generally structured to:
• Maximize revenue per event
• Bundle services to protect margins
• Prioritize high-spend or lodging-related events
As a result, many locally attended events encounter friction related to cost, parking, vendor restrictions, or lack of scheduling flexibility.

A City-owned event hall exists to serve events that are not well served by private venues, particularly those that are:
• Locally attended rather than destination-based
• Culturally diverse and vendor-flexible
• Repeatable on an annual or recurring basis
• Sensitive to total cost and guest parking experience
The Lagoon Event Hall is intended to fill this gap by offering a predictable, accessible alternative that supports community use while still operating responsibly.

CORE FUNCTIONAL ROLE OF THE LAGOON EVENT HALL
Based on the market capture and substitution analysis, the Lagoon Event Hall’s core role is to function as a mid-size civic event facility designed for repeatable, locally attended events that require exclusive use, structured setup, and predictable pricing.

Key elements of this role include:
• Mid-size focus: Serving events generally ranging from 100 to 400 guests • Repeat usability: Supporting annual fundraisers, recurring banquets, and institutional meetings • Neutral civic setting: Appropriate for a wide range of community, nonprofit, and private users • Operational consistency: Providing reliable staffing, setup standards, and post-event reset This role emphasizes consistency and reliability rather than prestige or luxury positioning.

Foster City, California
70 WHAT THE LAGOON EVENT HALL IS N OT INTENDED TO BE
Equally important is defining what the Lagoon Event Hall is not intended to function as.

The facility is not designed to operate as:
• A full-service hotel ballroom with bundled catering, lodging, and service charges • A conference or exposition facility designed for large-scale or logistics-intensive events • A luxury or destination venue that competes primarily on exclusivity or brand identity • A general-purpose community room with minimal staffing and reset requirements Attempting to serve these roles would create misalignment between user expectations, staffing needs, and pricing, and would undermine the Hall’s ability to serve its core market effectively.

OPERATIONAL IMPLICATIONS OF THE DEFINED ROLE
The defined role of the Lagoon Event Hall carries specific operational implications that shape later assumptions.

EVENT INTENSITY AND RESET REQUIREMENTS
Because the Hall is intended for exclusive use events, each booking requires:
• Dedicated opening and closing procedures
• Staff presence during the event
• Post-event custodial reset to a consistent standard
• Inspection and preparation for subsequent bookings
These requirements limit the number of events that can be supported sustainably and reinforce the need for realistic utilization targets.

SCHEDULING APPROACH
The Hall’s role supports a scheduling approach that:
• Encourages weekday use for meetings, trainings, and smaller banquets • Preserves weekend availability for core social and cultural events • Avoids reliance on continuous Saturday bookings, which are staffing-intensive This approach balances community access with operational sustainability.

CONFIGURATION FLEXIBILITY
Most core event segments do not require full-facility reservations. As a result, the Hall must operate as a divisible venue, allowing:
• Event size to be matched to actual need
• Staffing and custodial effort to scale appropriately
• Wear and tear to be managed across the facility
Configuration flexibility is therefore both a service feature and a cost-control strategy.

Community Center Business Operations Plan
71 POLICY IMPLICATIONS OF THE CIVIC ROLE
The Lagoon Event Hall’s civic role implies several policy considerations:
• Some level of subsidy for residents and nonprofits is appropriate, but it should be intentional and limited
• Not every event must fully recover costs, but the overall operation must remain financially sustainable
• Pricing and policies should prioritize clarity and consistency, rather than discretionary discounts
• Equity is best supported through transparent pricing and predictable access, not ad hoc exceptions
These principles guide the pricing framework introduced in the following section.

SUMMARY: ROLE OF THE LAGOON EVENT HALL
• The Lagoon Event Hall is designed to serve mid-size, locally attended events that occur frequently and require exclusive use and professional management • It fills a gap between private venues that prioritize bundling and prestige and community spaces that lack event-level infrastructure
• Its success depends on repeatable demand, predictable pricing, and operational consistency, not on capturing every event type
• This defined role establishes the operational boundaries within which staffing, pricing, utilization, and revenue assumptions must be evaluated
With the Hall’s role clearly defined, the appendix can now turn to the operational realities and capacity constraints that follow from this role.

EVENT VOLUME, UTILIZATION, AND CONFIGURATION MIX ASSUMPTIONS

PURPOSE OF THIS SECTION
This section addresses the event volume and utilization assumptions to align with the pricing framework and revenue targets established elsewhere in the operating model. These assumptions remain conservative and capacity-informed, not aspirational.

BASIS FOR ANNUAL EVENT VOLUME

ANNUAL EVENT VOLUME ASSUMPTION
Based on a conservative scheduling and configuration efficiency, the model assumes 260 total Event Hall bookings per year.

This equates to:
• 5.0 events per week on average, across the full calendar year • Increased weekday utilization rather than additional Saturday saturation • Continued protection of operational quality and staffing sustainability Foster City, California
72 This adjustment reflects better utilization of weekdays and smaller configurations, not a shift toward continuous or high-intensity use.

DAY -OF-WEEK DISTRIBUTION (260 -EVENT MODEL)
The revised volume is distributed in a manner that preserves weekend constraints while expanding weekday activity.

ANNUAL EVENT DISTRIBUTION BY DAY TYPE (260 EVENTS)
Day Type Events Percent of Total
Weekday (Mon–Thu) 150 58%
Friday 40 15%
Saturday 45 17%
Sunday 25 10%
Total 260 100%

RATIONALE
• Weekdays absorb the majority of incremental volume, driven by meetings, trainings, nonprofit events, and smaller banquets.
• Saturdays increase modestly but remain constrained to avoid staffing and reset strain. • Sundays remain stable, reflecting shorter event durations and earlier end times.

CONFIGURATION MIX ASSUMPTIONS (260- EVENT MODEL)
Most events do not require full facility use. Increasing volume comes primarily from:
• Smaller and medium configurations
• Shorter-duration weekday events
• More efficient reset and turnaround
The configuration strategy remains a cost-control and capacity-management tool.

CONFIGURATION MIX
Configuration Events Percent of Total Typical Uses
Small (1 Hall) 90 35% Meetings, trainings, showers, weekday events Medium (2 Halls) 100 38% Core banquets, fundraisers, community events Large (3 Halls) 50 19% Cultural events, larger receptions Full 20 8% Peak, signature events
Total 260 100%

Community Center Business Operations Plan
73 WHY THIS MIX WORKS
• 73 percent of events use one or two halls, reinforcing efficient staffing and custodial scaling • Full-hall events remain intentionally limited
• Incremental volume is driven by configurations with lower marginal cost

ANNUAL RENTAL VOLUME BY CONFIGURATION AND DA Y
ANNUAL RENTAL VOLUME SUMMARY (260 EVENTS)
Configuration Weekday Friday Saturday Sunday Total
Small (1 Hall) 70 15 5 0 90
Medium (2 Halls) 55 18 17 10 100
Large (3 Halls) 20 12 10 8 50
Full 5 5 13 - 20
Total 150 40 45 25 260
This pattern reflects:
• Weekday efficiency gains
• Peak-period discipline
• Continued protection of service quality
SUMMARY: EVENT VOLUME AND REVENUE ALIGNMENT
In summary:
• Maximize the City's investment and facility utilization • The revised model assumes 260 annual Event Hall bookings, reflecting efficient but sustainable use
• Additional volume is driven primarily by weekday and smaller-configuration events • Weekend demand remains constrained to protect staffing and facility condition • This utilization level aligns with the City’s $1.2–$1.3 million annual revenue objective • The assumptions remain conservative, capacity-informed, and defensible for a public facility

Foster City, California
74 JUSTIFICATION FOR USER CATEGORIES, EXACT FEES, AND BENCHMARK

VALIDATION
The Lagoon Event Hall pricing model is intentionally structured around Resident, Non -Profit, and Commercial user categories and a configuration-based fee schedule because this framework best aligns public benefit, subsidy policy, and actual City operating costs. The exact dollar amounts proposed were developed using a bottom -up, cost -based methodology, then validated against comparable public facilities to confirm reasonableness and defensibility.

PLEASE NOTE: It is understood that the pricing methodology and associated fees are contingent upon pricing policy adoption by the Foster City City Council.

RATIONALE FOR RESIDENT, NON- PROFIT, AND COMMERCIAL USER CATEGORIES These three categories were selected because they represent the clearest and most defensible distinctions in both public purpose and fiscal impact:
• Resident users are the primary intended beneficiaries of City facilities. Pricing reflects a deliberate partial subsidy consistent with community access and public service delivery. • Non-Profit users provide community or charitable benefit but often operate at larger scales, require more staffing, and do not contribute to the City’s tax base in the same way as residents.

Pricing reflects reduced subsidy relative to residents while maintaining access. • Commercial users generate private revenue and therefore are priced to minimize or eliminate public subsidy, particularly during peak demand periods.

Alternative classifications (event type, attendance size, local vs. non- local) were intentionally avoided because they increase administrative complexity without improving equity or financial outcomes. The selected categories align directly with subsidy intent and cost -recovery expectations, making them transparent, consistent, and easy to administer.

COST -BASED METHODOLOGY USED TO ESTABLISH EXACT FEES
All proposed fees were developed using a bottom-up cost model based on the City of Foster City’s actual, fully burdened wage and benefit rates. For each Event Hall configuration (Small, Medium, Large, Full), the City modeled:
• Required staffing roles and minimum coverage levels
• Average event duration, including setup and teardown
• Custodial labor hours and supply costs
• Utilities, supervision, and operational impacts
These inputs established a true per-event and per-hour cost baseline, which served as the pricing floor.

9.17.1 JUSTIFICATION FOR WEEKDAY HOURLY RATES (MONDAY– THURSDAY) Weekday hourly rates were intentionally set:
• Above marginal staffing cost, ensuring each event contributes toward its direct operating burden • Below full cost recovery, to encourage utilization and preserve community access during non - peak periods
• Differentiated by user category to reflect intentional subsidy policy

Community Center Business Operations Plan
75 Specifically:
• Resident rates recover a majority of direct staffing and operating costs while remaining accessible.
• Non-Profit rates recover a higher share of staffing and custodial costs, reflecting reduced subsidy. • Commercial rates approach a near-full recovery of direct labor and operating costs on an hourly basis.

The exact dollar amounts represent the lowest defensible rates that still meet cost- recovery targets under conservative utilization assumptions.

JUSTIFICATION FOR PEAK PERIOD FULL DAY RATES (FRIDAY– SUNDAY) Peak full day rates were calculated by converting total event impact into a single -event cost model, including:
• Full staffing coverage for the duration of exclusive use • Increased custodial reset effort
• Utilities and systems load
• Opportunity cost of foregone bookings during high-demand periods Rates were scaled by configuration and day of week to fully cover direct costs and appropriately compensate the City for peak-period scarcity.

JUSTIFICATION FOR REQUIRED FEES
Required fees are direct translations of measurable costs, not discretionary revenue tools:
• Security ($85/hour/guard): Pass-through at actual cost, no markup • Kitchen Use Fee ($550): Incremental utilities, oversight, equipment wear, and custodial impact Separating these costs from base rental rates improves transparency and prevents cross-subsidization.

BENCHMARK VALIDATION OF PROPOSED FEE LEVELS
While the Lagoon Event Hall fees were developed using a cost -based methodology, the resulting dollar amounts were validated against comparable public facilities to confirm reasonableness.

A review of regional public event halls and community facilities including facilities such as Agoura Hills, California Event Hall (city-operated) indicates that:
• Weekday hourly rates for similar public facilities commonly fall within ranges that bracket Foster City’s proposed Resident and Non -Profit rates, particularly once staffing and cleaning fees are included.
• Commercial rates at peer agencies often meet or exceed Foster City’s proposed levels when exclusive use and required staffing are fully accounted for. • Weekend full day pricing at comparable civic facilities commonly ranges from the mid -$2,000s for smaller configurations to $6,000+ for full-facility exclusive use, consistent with Foster City’s proposed structure.
• Facilities advertising lower base rates frequently rely on separate required fees that bring total event cost in line with or above Foster City’s all-in pricing.

Foster City, California
76 Importantly, Foster City’s model is more transparent than many benchmarks, as it clearly separates base rental, staffing, and reset costs rather than embedding them in opaque flat rates.

ROLE OF BENCHMARKING IN THE FINAL FEES
Benchmarking was used to validate outcomes, not to set prices:
• Fees were first calibrated to actual City operating costs and subsidy policy • Comparable facilities were then reviewed to confirm results fell within a reasonable public- sector range
• Where differences existed, the City intentionally prioritized cost alignment over market chasing This approach protects the City from underpricing public assets while avoiding speculative or revenue - driven pricing.

BOTTOM LINE
The Resident, Non-Profit, and Commercial pricing structure and the exact dollar amounts proposed were selected because they:
• Are grounded in actual City staffing and operating costs • Align with clear subsidy and public benefit policy
• Scale logically by configuration and demand period
• Are validated by regional benchmarking, including Agoura Hills • Improve financial performance under conservative assumptions • Remain transparent, equitable, and defensible
Together, this ensures the Lagoon Event Hall functions as a community -serving facility with responsible fiscal stewardship, not a generalized rental venue.

CONFIGURATION -BASED PRICING
The Lagoon Event Hall is a divisible facility that serves a wide range of event sizes. A flat rate would either:
• Overcharge smaller events, suppressing weekday and community use, or • Under recover costs for larger, higher-intensity events Configuration-based pricing ensures that:
• Users pay in proportion to the space they occupy
• Staffing and custodial effort scale with event intensity • The facility remains accessible for smaller, frequent events while recovering costs for peak use This approach is standard practice for civic event halls and is well understood by users.

EMBEDDED FEE PHILOSOPHY
The framework embeds administrative and overhead costs directly into the base rental pricing. This approach is intentional and responds to three issues commonly raised by users and policymakers:

Community Center Business Operations Plan
77 1. Price transparency: Separate line-item fees often create confusion and the perception of “add- ons,” even when they represent real costs.

2. Predictability for users: Users prefer to understand their total obligation upfront, particularly nonprofits and community groups.

3. Administrative efficiency: Embedded fees reduce staff time spent explaining, adjusting, or negotiating line items.

Embedding these costs does not eliminate them; it simply allocates them more clearly and consistently across users.

COSTS EMBEDDED IN BASE RENTAL RATES
• Base rental rates incorporate the following cost components:
o Event coordination and administrative processing
o Standard custodial setup and post-event reset
o Utilities associated with event use
o Baseline building oversight and compliance.
• Costs that remain separate are those that are highly variable or event-specific, such as:
o Security staffing (pass-through)
o Optional kitchen use
o Optional add-ons and specialty spaces
This distinction maintains fairness while preserving transparency.

Foster City, California
78 CONFIGURATION -BASED FEE SCHEDULE (PROPOSED RATES)

PURPOSE OF THIS SECTION
This section establishes the exact proposed Event Hall rental rates used in the financial model. These rates are fully embedded and include administrative processing and standard custodial reset. No separate processing or cleaning fees are assumed.

The pricing schedule is designed to:
• Align with the Event Hall’s civic role
• Scale with event size and operational intensity
• Support the 260-event utilization model

PROPOSED RENTAL FEE SCHEDULE (EMBEDDED FEES)
WEEKDAY HOURLY RATES (MONDAY– THURSDAY)
Configuration Resident Nonprofit Commercial
Small (1 Hall) $165 $180 $225
Medium (2 Halls) $225 $245 $305
Large (3 Halls) $285 $310 $390
Full Hall $345 $375 $470
These rates include:
• Administrative processing
• Standard custodial setup and post-event reset
• Utilities and building oversight
PEAK PERIOD FULL- DAY RATES (FRIDAY– SUNDAY)
Configuration Friday Saturday Sunday
Small (1 Hall) $2,700 $3,300 $3,000
Medium (2 Halls) $3,600 $4,400 $4,000
Large (3 Halls) $4,700 $5,800 $5,300
Full Hall $5,700 $7,000 $6,400
Full-day rates reflect:
• Exclusive use
• Extended staffing coverage
• Increased custodial and reset effort
• Opportunity cost during peak demand periods

Community Center Business Operations Plan
79 FEES RETAINED AS SEPARATE PASS -THROUGH OR OPTIONAL CHARGES The following fees are not embedded due to event-specific variability:

Fee Type Rate Basis
Security Staffing $85 per hour per guard Pass-through
Kitchen Use $550 per event Optional
Balcony / Terrace Add-Ons $300–$750 Optional
These charges are applied only when required or requested.

SUMMARY OF PRICING INTENT
This pricing schedule:
• Fully embeds fixed operational costs into base rental fees • Maintains predictable, all-in pricing for users
• Scales appropriately by configuration and day type
• Avoids discretionary or negotiated fee adjustments
These proposed rates are used in the revenue model below.

ANNUAL REVENUE MODEL

EVENT VOLUME AND CONFIGURATION MIX (REFERENCE)
Configuration Events
Small (1 Hall) 90
Medium (2 Halls) 100
Large (3 Halls) 50
Full Hall 20
Total 260

Foster City, California
80 BASE RENTAL REVENUE CALCULATION

ANNUAL BASE RENTAL REVENUE
Configuration Events Avg Revenue per Event Annual Revenue Small (1 Hall) 90 $2,450 $220,500
Medium (2 Halls) 100 $3,150 $315,000
Large (3 Halls) 50 $4,600 $230,000
Full Hall 20 $6,900 $138,000
Total Base Rentals $903,500
Average revenue per event reflects:
• Mix of weekday vs. peak bookings
• Resident / nonprofit / commercial distribution
• Actual configuration usage patterns

OPTIONAL ADD -ON REVENUE

ANNUAL ADD -ON REVENUE
Source Assumption Annual Revenue
Kitchen Use 130 events × $550 $71,500
Balcony / Terrace 60 events × avg $650 $39,000
Total Add-Ons $110,500

SECURITY STAFFING (PASS -THROUGH)

ANNUAL SECURITY REVENUE
Metric Value
Events requiring security 160
Avg guards per event 2.5
Avg hours per event 6
Hourly rate $85
Annual Security Revenue $204,000
Security revenue is fully offset by corresponding expense and does not affect net operating margin.

Community Center Business Operations Plan
81 TOTAL ANNUAL GROSS REVENUE

TOTAL ANNUAL REVENUE SUMMARY
Category Annual Revenue
Base Rentals $903,500
Optional Add-Ons $110,500
Security (Pass-Through) $204,000
Total Gross Revenue $1,218,000
The $1.218 million annual revenue figure is:
• Directly tied to adopted fees and actual event volume • Achieved without assuming full calendar saturation
• Driven primarily by small and medium configurations
• Supported by weekday utilization, not Saturday overbooking • Consistent with comparable civic event facilities in similar markets

SUMMARY
In summary:
• Exact adopted rental fees are fully embedded and transparent • The 260-event utilization model produces $1.218 million in annual gross revenue • Revenue is diversified across many moderate-size events • The model avoids dependence on peak events or discretionary fees • This revenue level supports sustainable operations consistent with the Event Hall’s civic role

Foster City City CouncilFebruary 17, 2026

Foster City City Council
February 17, 2026