Date:      November 16, 2005

To:          Ernie Shaw

From:     Jimmy Gibbs, Aquatic Manager

RE:          Aquatic Discount Punch Card

We are developing an improved system of administering the discount multi-swim admissions option at the swimming pools.  Currently, we offer a booklet of 28 individual tickets that may be universally used for admission.  Annually, we purchase about 2000 booklets at a cost of $1500 (.75 per booklet).  LPRD is one of the only agencies in our area still using this system.

I would like to change to a multiple-use punch card instead of booklets of individual tickets.    Because of our high volume sales and increasing production costs, I believe it is time to change to a more updated system.  This change would involve issuing a single, credit card sized pass with multiple punch-out spaces for swims. 

With this change we will accomplish the following:

· Reduce production costs to .37 per multi-use card

· Increase convenience by offering a single, durable multi-punch card

· Reduce ticket waste and storage requirements

· Streamline accounting accuracy

There will be some changes in the method of distribution if we are to go to a punch card system.  For example, on an annual basis we have donated ticket booklets to clearinghouse organizations that then distribute individual tickets as requests are received.  With the old system of individual tickets in the booklets, this was an option.  Multi-use punch cards, however, will not allow as much flexibility.  To address this we have developed individual passes that will continue to meet the needs of individual distribution.  On average, these special groups distribute approximately 4,400 individual tickets. This is a small percentage of the 56,000 tickets currently produced. We can produce these individual specialty tickets at a cost of about $125 (about .02 each). 

We already produce nearly 5,500 specialty tickets like this for the Library Reading Program, CHIP Healthy Kids Program and the Bike Fair & Helmet Giveaway.

Overall, we will continue to meet the needs of our customers without interrupting services.

Please let me know if I can provide additional information or clarification.