Frequently Asked Questions - Managment Services

The following are some frequently asked questions regarding Lutra's management services.

Why would we want Lutra to manage our facility for us?
Under Lutra's management, your facility will provide a higher level of service to the community and we will minimize, if not eliminate completely, the operating losses normally associated with the operation of community aquatics facilities.

But can't we just do that ourselves?
If you are able to, by all means do so. Lutra exists because the vast majority of community aquatics facilities aren't able to do it on their own. We believe that our years of experience and our highly developed operating systems put us in a better position for success than any individual operator.

I've heard of all kinds of facilities that are "self-supporting."
Certainly there are examples, but in most cases the facility in question isn't counting all of its operating costs. Many municipalities, for example, don't track utility expenses for individual facilities. Similarly, things like accounting, insurance, advertising, and management time are often lumped in with the administering department's "overhead" cost. When a facility claims to be self-supporting, make sure they're including all their costs. We don't claim to be the only self-supporting facilities out there—but a truly self-supporting facility is quite rare.

It seems strange for a non-profit organization or government to partner with a private company.
There are thousands of examples of similar approaches—Aramark manages dining facilities for universities, governments purchase goods and services from private companies, and on and on. If there's anything strange about a partnership with Lutra Aquatics, it's that our partners don't pay for our services.

You claim Lutra's management services don't cost anything. How is that possible?
Lutra's compensation for management services comes solely from operating surpluses. Thus we only receive compensation for our services if, under our management, the facility's revenues exceed its operating costs. If they do, then Lutra and the facility owner share in the surplus. If not, Lutra suffers the loss.

It all seems kind of risky.
In fact, it's probably the least risky thing you can do. Our management contracts are structured so that you will know, up front, exactly what you'll get and exactly what costs you'll be responsible for. Everything else is Lutra's risk. If the facility loses money, that's Lutra losing money, not you.

Can Lutra make any facility self-supporting?
Area demographics and facility design play a large role in any facility's potential, and thus it is not necessarily possible for every facility. However, even if true self-supporting status isn't possible for your facility, Lutra's management services can most likely dramatically reduce your operating losses.

If Lutra manages our facility, what do we have to do?
You'll have to keep the physical structure intact. The major capital investment—roofs, plumbing, electrical, HVAC, filters and pumps, etc.—is yours, and you'll continue to maintain that investment. Depending on the situation, you may also be responsible for certain other (but pre-defined) areas—areas such as plowing the parking lot, or perhaps providing utilities. Lutra will handle everything else.

If Lutra manages our facility, what do we get?
In exchange for your contribution to the facility's upkeep or portion of expenses, we will agree ahead of time on a certain level of free aquatics services that Lutra will provide to you. In the case of municipalities, this generally involves free pool time for high school swim teams. In the case of educational institutions, this may extend to include membership privileges for students and staff. What you receive, and what expenses are your responsibility, will be determined up front on a case-by-case basis depending on your facility's potential. In addition, you will receive a share of the facility's operating surplus.

When should we call Lutra Aquatics?
You can call us at any time. We have no objection to joining a fully-operational facility, or one that is almost completed. However, design and construction decisions can have a big impact on a facility's ability to become self-supporting—sometimes a facility just won't be able to do it, regardless of management expertise. That's why we encourage you to take advantage of Lutra's consulting services early on in the process, to make sure you're building the right type of facility for your market and that your design won't make operations unnecessarily difficult (or expensive).