23. Grace and Tony Toy
CITY F
CUPEIQ"INO
Parks and Recreation Department
CITY COUNCIL
ST AFF REPORT
Agenda Item Number ;)3
Agenda Date: 3/28/07
ISSUE
Subject: Response to Comments made during Oral Communications, March 20, 2007, by Grace
and Tony Toy
BACKGROUND
Attached is the written text of the Toy's comments, which they provided to the City Clerk.
Their four proposals to greatly increase revenue at the Cupertino Sports Center are:
. "Open up the reservation sheet, which is a business journal,
· Court Use Agreement with L~fetime Tennis should be disclosed and monitored,
. Do a cost/benefit analysis for the subsidies to the Cupertino Tennis Club, as 80% of the
members do not live in Cupertino,
. Rotate in new staff for management. "
DISCUSSION
The staff response to each of these issues is as follows:
. Open the reservation sheet, which is a business journal.
Attached is a copy ofa memo from the City Attorney to Tony Toy, dated December 10,2003,
addressing this issue.
. Court Use Agreement with Lifetime Tennis should be disclosed and monitored.
The City Council reviewed and approved the agreement with Lifetime Tennis in March 7,
2006. A copy of the staff report is attached.
. Do a cost/benefit analysis for the subsidies to the Cupertino Tennis Club. as 80% of the
members do not live in Cupertino.
All nonresident pass-holders, whether they participate in the Cupertino Tennis Club or not, pay
a nonresident rate. Tennis Club members must purchase annual passes.
Printed on Recycled Paper
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March 28, 2007
Page 2 of2
A copy of the most recent profit and loss statement for the Sports Center, prepared by our
finance department, is attached.
. Rotate in new staff/or management.
Staff assignments are under the purview of the City Manager.
Also attached is a memo from Colleen Ferris and Don McCarthy, addressing a number of
misstated facts in the Toy's Oral Communication.
Attached is a copy of one of the earliest communications from Grace Toy that we still have on
file. It is dated October 16,1997. The Toys have had issues with the management of the facility
since 1992, but we no longer have the correspondence files.
Staff will be in attendance at the meeting to address any additional comments the Council may
have.
RECOMMENDATION
This is not an action item. Council Member K wok asked that we respond to the
comments made under Oral Communications.
Respectfully submitted:
Approved for submission to City Council:
,.~~
,.
Therese Ambrosi Smith, Director
Parks and Recreation Department
C!ft/~ {l/u,t-zm-Il .eLm
David W. Knapp, City Manager () - (
a 3~0l
Four Proposals to Increase Revenue at Cupertino Sports Center
We have been passholders at the Sports Center since our City purchased the complex
15 years ago. We would like to report to City Council members that the operation of
the Sports Center only benefits Lifetime Tennis and the Cupertino Tennis Club.
Taxpayers have been shortchanged millions of dollars. We have four proposals which
will greatly increase our revenue:
1) Open up the reservation sheet, which is a business journal.
2) Court Use Agreement with Lifetime Tennis should be disclosed and monitored.
3) Do a costlbenefit analysis for the subsidies to the Cupertino Tennis Club, as 80%
of the members do not live in Cupertino.
4) Rotate in new staff for management.
Let us explain how our proposals will increase revenue. The Center has 17 courts.
Lifetime Tennis rents a few courts for teaching. The rest of the courts are for
passholders like us. A major source of revenue is selling annual passes. All
passholders pay approximately $400 annually, including Tennis Club members.
Private clubs, such as Courtside, charge $2000 per year plus $1000 initiation fees.
They are close to full capacity with very steady membership.
Staff reports that we have over 1000 passholders. They include a 12-month span
when 300 passholders dropped out. They also include tryout special promotions, City
employees using City dollars, etc. These are not profitable products. The truth is that
the Center never has enough business because passholders' courts have been taken
away.
In the old days, the court reservation sheet was open to the public and kept in archives
forever. Lifetime Tennis had three courts. We saw many students use up passholders'
courts which were reserved without any passholder's name.
On top of that, during high season prime time, Club President and Team Tennis
Coordinator also reserved many courts through Team Tennis Priority Reservation to
play personal matches.
Five years ago when we proposed court time management, the reservatiop sheet was
covered up immediately and shredded shortly thereafter. What was troubling was just
how easily Lifetime Tennis and Club officials can get courts. For example, on a quiet
Saturday evening, front desk staff told us that all courts were fully booked. Planning
Commissioner Cary Chien overheard our conversation. The three of us went out to
the balcony but we did not see even one player out on the courts. It was spring break
for students but "John Doe" had forgotten to cancel his weekly reservations.
On another Saturday afternoon, Vice Mayor Kwok was surprised that there was
hardly any passholder using the facility. The following month after a bogus survey,
staff announced extended weekend hours due to overwhelming requests from
passholders. When tennis parents pay a hefty $400 for each session, taxpayers have to
pay for staff overtime.
Council may ask why the Toys are the only ones who speak up. It is extremely
~ "3~3
complicated and cannot be explained in one minute. We'll try:
- Our annual fees are only 20% of the competitors but we have the highest drop out
rate. From a business perspective, you know the level of satisfaction is extremely
low.
- Staff has too much power. We have seen many unhappy customers being ignored,
bullied, and punished. The persistent ones receive a full year's refund and are happily
playing tennis somewhere else.
- The public assumes that all proceeds from lessons benefit our City. We know this
is not true.
- Staff irresponsibly passes out false information. For example, a senior staff
member told us that the Club pays extra court fees. We know this is also not true.
- Since no accounting has been released, residents do not know how much they are
subsidizing the Center and how much economic opportunity has been missed.
- Furthermore, 99% of Cupertino residents have never been passholders. Among the
1 %, they simply do not have the insider information of how courts are being fixed
when everything is covered up.
- A few Club officials have been around as long as we have. They absolutely know
more than we do. They often speak up at Parks and Recreation meetings, taking a lot
of credit. They claim to represent all the passholders to thank staff for doing a great
job. In return, they were granted free courts to play with outsiders. They share joint
ventures and business referrals with Lifetime Tennis. They are allies who benefit
from our system.
We have spoken up many times because we care about the economic well-being of
our City. We sincerely ask Council to accept and implement our four proposals.
1) There is a pot of gold on every court. The reservation sheet is a cash register
which has the sales record. Please open it up.
2) Lifetime Tennis is a renter. Their court use agreement should be disclosed and
monitored to keep them honest.
3) 80% of Club members are nonresidents who overly use and underpay our City.
Council should conduct a cost/benefit analysis to see why taxpayers should subsidize
them. Without their Prime Time Priority Reservation, the Center would be able to
accommodate hundreds more annual passholders.
4) Most managing staff have been holding the same position for over 10 years.
There are just too many loopholes. It is time to rotate in new staff and ov.:,erhaul the
system.
Finally, here's a bonus. 15 years ago, the complex was leased out for a million dollars
per year. For two years, the Parks and Recreation Dept. never collected a penny.
Tennis is such a profitable "Lifetime" Business that we have seen the owner of
Lifetime Tennis for 15 years, consecutively.
Thank you very much. Please contact us at emai195014@yahoo.comif you have
further questions.
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C TV OF
CUPEIUINO
Office of the City Attorney
10320 S. OeAnza Blvd., #10
Cupertino, CA 95014
Ph: (408) 777-3403
Fax: (408) 777-3401
Charles T. Kilian
City Attorney
Eileen H. Murray
Assistant City Attorney
December 10,2003
Mr. Tony Toy
10130 Crescent Road
Cupertino, CA 95014
Re: Cupertino Sports Center Reservation Sheets
Dear Mr. Toy:
I am in receipt of your letter to me dated December 9, 2003 wherein you
requested information regarding your ability to inspect Sports Center daily
reservation sheets. As you are aware, the city uses reservation sheets for the
purpose of reserving tennis courts at the Sports Center. These daily reservation
sheets are in fact public records which are available for public inspection and for
duplication (at the requester's cost). All public records requests must be specific
and focused. The city may take up to ten days from the receipt of a public
records request to decide whether to make such records available. Under
"unusual circumstances" this ten-day period can be extended for an additional
fourteen days.
Inasmuch as your request appears to be one of an ongoing nature, rather
than require individual requests to be made, the city will arrange to have the last
seven days reservation sheets available for your inspection at City Hall
(Department of Parks and Recreation). Your contact person is Marie Preston at
(408) 777-3200. You should contact her approximately a week in advance so
that she can obtain the last seven days of reservations sheets. If you want other
reservation sheets, you need to notify Ms. Preston at least a week in advance as
well.
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Page Two
If you wish copies made of any reservation sheet, please let Ms. Preston
know so that the Department can prepare an estimate of the direct costs of
reproduction. If you have any questions, please do not hesitate to call.
Charles 1. Kilian
City Attorney
CTKldej
Enc. -./
cc: Vfherese Smith
Dave Knapp
Marie Preston
Don McCarthy
;}. 3-&
CUPEIUINO
Parks and Recreation Department
CITY COUNCIL
STAFF REPORT
Agenda Item Number JJe
Agenda Date: March 7, 2006
ISSUE
Authorize the City Manager to execute a Professional Services Agreement with
Lifetime Tennis
BACKGROUND
In 1994, The City of Cupertino solicited proposals for professional services in support
of a tennis instructional program at the Cupertino Sports Center. This recruitment was
done after a staff analysis concluded that contracting the program out would be more
cost effective than managing it in house. The original agreement was crafted to achieve
certain goals including:
. Developing a tennis program to serve beginner through expert skill levels,
starting first with a beginning tennis instructional program, then developing
additional programming; the early contracts were written to provide incentives
for program growth.
. Utilizing the courts for instruction during non-prime time hours,
. Developing a partnership that allows City staff to participate in the evaluation of
employees, and
. Providing revenue in support of programming at the Cupertino Sports Center.
The original contract was successful, achieved the objectives stated above, and resulted
in a fine tennis instructional program for all levels of play. Cupertino now boasts about
7000 lessons per year and offers instruction in seven languages.
The terms of the original contract were favorable to the growth of the program. The
City received 20% of gross revenue the contractor earned up to $300,000, 10% of gross
revenue for payment received between $300,000 to $500,000 and 5% of gross revenue
over $500,000. In addition the City received five dollars per registration transaction and
Print6d on Recycled Paper
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March 7, 2006
Page 2 of2
rent on the tennis pro shop. Please refer to the attached spreadsheet detailing 2004/2005
revenues. For the full year 2004/2005, the City received $141,856.80 on $1,056,203.38
in gross revenue, including $29,855.00 in registration fees.
Under the tenns of the proposed agreement the City will earn:
. 20% on revenues up to $1,000,000.00, and 5% after that,
. A $5 per transaction administration fee, and
. $1 O,OOO.OO/yr for the tennis pro shop rental.
· Lifetime Tennis will continue to pay for all material and equipment relative to
the instructional program, and
· City will continue to schedule the courts to the greatest benefit of Sports Center
programming.
Based on current trends it is expected the revenue from this service agreement will
equal $250,000.00 per year.
FISCAL IMPACT
If executed as detailed above, the proposed service contract is expected to provide
$250,000.00 in revenue to the Sports Center in the coming fiscal year, compared to
$141,856.80 last year. A Sports Center profit and loss analysis prepared by our Finance
Manager, and requested by Councilmember Wang, is also attached for your infonnation.
RECOMMENDATION
Authorize the City Manager to execute a Professional Services Agreement with
Lifetime Tennis per tenns outlined within this staff report.
Respectfully submitted:
Approved tl submission to City Council:
~
Therese Ambrosi Smith, Director
Parks and Recreation Department
d3-B
LIFETIME TENNIS
TOTALS COMPARISON
200412005 & 200512006
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1 $ '....71.00 1151003.21 . 1527.21 111.,2IU7 1115,5lS7.12 1 1,2l1O.15 . 35,111.53 . 35,_.&& 1 2.7.13
~'" ,:.1::::::' ~ : :=,., .,~::::: ,lll2,11Llh 1,.:::0 :,.::::: :.'::~~ :...:::..
'~:'==" ~ ,:~=:'C ,,~70~ 11112t00,71115"':'7\";-'; 'E!8lM. ,'.. '11"'.711S11'~I.~"~I.r ~~~::.....,: ..237'.'.:.
4 1 111A01.32 11018,310..12 1122.010.901 '114.5 ,II ~ ~ _.. UOll.05 . 2,71...4
SUBT11;:;,. ...., M7U1U7 ,~, NU,022.1"" ilZII. .1,.t2,1MM. .t1..-;t1.;. ,-...011,.:
1 . 23.521.36 . 37131.25 . 13.511." '20.' ,II 1 32,507.2' 1 11..33 . 2,5M,~ . 4.&30.11 1 2.lIlllI.5&
SUBTTL.'. :s'AI;4IU2' .111.......11,. 1I11,Jt2.1l1..,., 1 Ill" .M1u:aA1\ ~rn4.~m';2' 's. _.10 . ".AT"'" 7 "- 1 '1.DZM'. -'.
. 1 45,III.7lI . ,2111.11 . 7,322.32 1 ~.__,' $ .1,352.70 . 1,1I14.52 . 5.217.'1 1 5.NU1 1 837.10
7 ~.'m~,~. 2,121.50 S( ....U6j... .~:: - :i:::~:.1 ''':'::::=''-C; 'f~~~~oz.;:::" ,~I::)
lIUBTTL': ,,,,,_"'UI' .._1t1.A" '. 1I12,l11.23J';' .' '-{ ...101.107.....:. 1 '.1..
. . 11',OII.ca 31..12 117.IIU-4 $101,112..' 1121.173.57 117.311.11 . HII.07 . ',lI!l3.35 $ 57UI
BlIIITTL}; '1.,711_'; $ 1.12I.2t..,. '" __.... - ..- "'1;121.III'., ('i.'.i:l,01UT'" ;'''11.221.11.., 1113,3U.N';c S :2;1M.K......"
. . 3O.l1V.1IZ $ 21,011.19 . 2,IOU3
IUI!I1'TL ',S'- ,. SI1U74.ZZ....... '. '. . . ,. $114,_,., .
10 . ",383.50 , _,.. $ 5,301.51
.lIUBTTt::.- ,.S. II:...... .....IM.21" "" ;S11U2U1.'
11 1 7.1.1.13 I 1,511I"1 . 1.211.11
SU81'T\.' IC1I1,1U.7lI" ' , :-.-u-' " , .."' .121....11.", .
12 . 143,217.0-4 1130157.11 . 12,2A.l1
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n . 11,__73 . 62.23:UI . .,2.7.31
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\4 1 58.3-42.12 1 M,ClO." 1 ..122.14
..TOTAL" $1,D11,21J;Jl1. - . 111'-' " , , .' ,.1<<_.11 . '
.:,~fEES;.'". '~RU...
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$ -4585.00 1 4 -485.00
1 130.00 . 1 010.00
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1 2 HO.OO . 3480.00
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S 195.00
S -4 380.00
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1 5.00
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.' ",I2ItJISLIlII ".'
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. 31120.00
. ,12.1OI.Ot
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$ 10.00
1 1
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. 1 a15.51
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1 134.11
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$ 288.00 0 0 S 708.:13 1 750,00
0 0 . 750.00 0 0
.00 , 0 S 711.00 S 7OU3 $ 710.00
S 5537." 0 0 $ 701.33 $ 750.00
, SI.IN;D, . '.-- . .. ? $07_ ,..1.1.... 11101..IO
$ 155.25 $2.250,00 0 $ 701.33 $ 750.00
L7lI1.U' ;'.1I2.2IIlUlIl S 710.... I' 12.1:&4... . 1Z.2III.oo
5'11.5-4 0 0 . 701.33 S 750.00
1:un.a . . 12.2!IlI.lID' S 71O.eo .00
137.150 0 0 . 701.33 1 750,00
1UtO; 1'" .00 7_ 1M. A.7IO.OI
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.1uto.tt '1Z:2IO.IO. S. 7
. 1 171,00 0 .1 750.00 0 $ 750.00
.13.....11 2l1O.OO. 10, " M.ZCUI A.2lIlI.OO
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'. 1Z.2III.GI. .. .......
0 1 701.33
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0 1 701.3S
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1. Coo1tractor'I PGIflon . CIly'I _ . Gi'oII _IlL
2. __ F_. ReIuncII, Court W.....IIlI.1I1d _ 1M __ coI....na; 1lley..1or InfonnGIon PU'JlO+M onty; _ now-..... &InIlIy _ _ 01"'- _ !be ConInd..... _ ond the Clty'1 PorIIon.
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Cupertino Sports Center Enterprise Fund 570
Profit & Loss Statement by Activity
Fiscal Year 2004-2005
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Activity: Activity: Activity :
Pool, Building, Court
Total Lifetime Tennis Membership Rental
"loot %ot "loot
Amount $ Amount $ Revenue Amount $ Revenue Amount $ Revenue
OPERATING REVENUES
Conference Room Rentals $1,799 $1,799
Court Rentals-Members & NonMembers $15,056 $15,056
DACA Rent $44,593 $44,593
Tennis Shop Rent $8,542 $8,542
Tennis Administration Fee $29.855 $29,855
Court Washing Fee $4,250 $4,250
Total Rent & Admin Fees $104,095 $42,647 $0 $61,448
Resident Tennis Lessons $1.039.988 $1,039,988
Resident Day Passes $11,933 $11,933
Nonresident Day Passes $4,455 $4,455
Monthly Passes $37,370 $37,370
Annual Passes $202,526 $202,526
Personal Training $5.880 $5,880
Aquatics $10.871 $10,871
Taxable Food & Beverage $9.263 $9,263
Guest Pass $600 $600
Child Watch $1,500 $1,500
Total Program Sales $1,324,386 $1,039,988 $284,398 $0
Total Operating Revenue $1,428,481 $1,082,635 76% $284,398 20% $61,448 4%
STAFF AND SERVICE PROVIDER EXPENSE
Sport Center Staff Salaries and Benefits $189.993 $37,999 3.5% $126.535 44.5% $25,459 41.4%
Fitness instructors & trainers $39,283 $39,283 13.8%
Lifetime Tennis revenue share before deductions $956.994 $956,994 88.4%
for rent, admin fee & court washing
Food & Beverage Sales $5.127 $5,127 1.8%
Total Staff & Service Provider Expense $1,191,397 $994,993 91.9% $170,946 60.1% $25,459 41.4%
I Gross OperatIng Profit $237,084 $87,842 8.1% $113,452 39.9% $35,989 58.6%
INTEREST REVENUE
Interest Earnings
Cupertino Sports Center Enterprise Fund 570
Profit & Loss Statement by Activity
Fiscal Year 2004-2005
Activity: Activity: Activity:
Pool, Building, Court
Total lifetime Tennis Membership Rental
%01 %of 0/. of
Amount $ AmountS Revenue Amount $ Revenue Amount $ Revenue
$8,615 $6.529 0.6% $1.715 0.6% $371 0.6%
$40.237 $10,495 1.0% $28,011 9.8% $1,731 2.8%
$4,301 $3,260 0.3% $856 0.3% $185 0.3%
$9.250 $7.011 0.6% $1.842 0.6% $398 0.6%
$197,543 $69.140 6.4% $108,649 38.2% $19.754 32.1%
$251,331 $89,906 8.3% $139,358 49.0% $22,068 35.9%
SUPPLIES AND MAINTENANCE EXPENSE
Supplies
Bank Charges
Information Technology
Utilities & Maintenance (exel capital outlays)
Total Supplies & Maintenance Expense
CAPITAL IMPROVEMENTS EXPENSE
Spread of capital costs (depreciation) $5.953 $2.084 0.2% $3.274 1.2% $595 1.0%
Court resurfacing 5-year cost spread $7.710 $3.710 0.3% $4,000 1.4%
Facility Improvement $8,374 $4.000 1.4% $4,374 7.1%
Total Capital Improvement Expense $22,037 $5,794 0.5% $11,274 4.0% $4,969 8.1%
Net ProfttILoss after Ca -0.1 % -$35,465 -12.5% $9,322 15.2%
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Cupertino Sports Center Enterprise Fund 570
Profit & Loss Statement by Activity
Fiscal Year 2005-2006
Activity: Activity: Activity:
Pool, Building, Court
Total Lifetime Tennis Membership Rental
"10 of "10 of "10 of
Amount $ Amount $ Revenue Amount $ Revenue Amount $ Revenue
OPERATING REVENUES
Conference Room Rentals $1,661 $1,661
Court Rentals-Members & NonMembers $4,800 $4,800
DACA Rent $45,208 $45,208
Total Rent & Admin Fees $51,669 $0 $0 $51,669
Resident Tennis Lessons $1,036,995 $1,036,995
Resident Day Passes $13,729 $13,729
Nonresident Day Passes $4,340 $4,340
Monthly Passes $53,640 $53,640
Annual Passes $216,923 $216,923
Personal Training $14,235 $14,235
Aquatics $15,421 $15,421
Taxable Food & Beverage $9,935 $9,935
Guest Pass $0
Child Watch $2,790 $2,790
Total Program Sales $1,368,008 $1,036,995 $331,013 $0
Total Operating Revenue $1,419,677 $1,036,995 73% $331,013 23% $51,669 4%
STAFF AND SERVICE PROVIDER EXPENSE
Sport Center Staff Salaries and Benefits $181,065 $36,213 3.5% $120,589 36.4% $24,263 47.0%
Cost allocation % 20% 67% 13%
Fitness instructors & trainers $49,155 $49,155 14.8%
Lifetime Tennis cost after deductions for rent, $910,008 $910,008 87.8%
admin fee & court washing
Food & Beverage Sales $5,224 $5,224 1.6%
Total Staff & Service Provider Expense $1,145,452 $946,221 91.2% $174,969 52.9% $24,263 47.0%
I Gross Operating Profit $274,225 $90,774 8.8% $156,044 47.1"10 $27,406 53.0%
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Cupertino Sports Center Enterprise Fund 570
Profit & Loss Statement by Activity
Fiscal Year 2005-2006
Activity: Activity: Activity:
Pool, Building, Court
Total Lifetime Tennis Membership Rental
%of %of %of
Amount $ Amount $ Revenue Amount $ Revenue Amount $ Revenue
INTEREST REVENUE
Interest Earnings $6,421 $4,690 0.5% $1,497 0.5% $234 0.5%
SUPPLIES AND MAINTENANCE EXPENSE
Supplies $39,011 9,495 0.9% 28,096 8.5% $1,420 2.7%
Bank Charges $4,587 $3,351 0.3% $1,070 0.3% $167 0.3%
Information Technology $10,170 $7,429 0.7% $2,371 0.7% $370 0.7%
Utilities & Maintenance (excl capital outlays) $179,661 $62,881 6.1% $98,814 29.9% $17,966 34.8%
Cost allocation % 35% 55% 10%
Total Supplies & Maintenance Expense $233,429 $83,156 8.0% $130,351 39.4% $19,923 38.6%
I Net Operatina Profit/Loss $47,217 $12,308 1.2% $27,190 8.2% $7,717 14.9%
CAPITAL IMPROVEMENTS EXPENSE
Spread of capital costs (depreciation) $5,953 $2,084 0.2% $3,274 1.0% $595 1.2%
Court resurfacing 5-year spread from 04-05 $7,710 $3,710 0.4% $4,000 1.2%
ADA pool upgrade design 05-06, full expense $56,479 0.0% $56,479 109.3%
Facility improvement, non recurring $6,735 $2,357 0.2% $3,704 1.1% $674 1.3%
Total Capital Improvement Expense $76,877 $8,151 0.8% $10,978 3.3% $57,748 111.8%
I Profit/Loss after Capital Projects -$29,660 $4,157 0.4% $16,212 4.9% -$50,031 -96.8%
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To: Therese Ambrosi Smith, Director of Parks and Recreation
Don McCarthy, Recreation Supervisor
From: Colleen Ferris, Recreation Coordinator
Subject: Response to the Toys Oral Communication at the City Council meeting on
3/20/07
Date: 3/26/07
Background: Grace and Tony Toy have been members ofthe Cupertino Sports Center
for approximately 15 years, and on numerous occasions they have addressed the City
Council and Parks and Recreation Commission regarding management of the facility.
Most commonly they speak against: the reservation system, court one policy, Cupertino
Tennis Club (CTC) and Lifetime Tennis (LL T.) A committee was formed in 2003 to
address their concerns. Tony Toy served on the committee. Passholder regulations were
revised and implemented in 2004. The Toys were not satisfied with the outcome.
The following are staff responses to the numerous complaints and accusations made
during the March 20, 2007 Oral Communications.
Toys would like the Reservation Sheets open
Response: The reservation sheets are put into a binder in summary form, which can be
viewed at the City Clerk's office with an appointment. This was instituted because of
Grace's continued attempts to take reservation sheets and view them during operating
hours, interrogating the staff as to why reservations were made. This became disruptive
to the operation.
Toys would like to know the Court use agreement with Lifetime Tennis
Response: L TT has access to Poolside courts from April- September.
From October - March they use Courts 9-12, Monday-Friday from 5-10 pm.
During non-time prime time hours the City has the right to prioritize court usage.
If a passholder needs a court, Lifetime Tennis will condense classes to accommodate the
passholder.
As per contract, L TT has access to courts 5 & 6 at Memorial Park. In addition to
expanding the tennis program, L TT pays the city a percentage of gross receipts.
Toys state the City pays for L TT expense for balls, carts, and snacks for students.
Response: L TT pays 100% of the expense associated with conducting classes.
Toys would like a Cost/Benefit Analysis for the subsides to the Cupertino Tennis
Club. Toys state 80% of the members do not live in Cupertino
Response: Anyone that does not live in Cupertino pays a non-resident rate (with the
exception of specials)
;13 -Ii
Toys would like to rotate in new staff for management
Response: The Toys have been dissatisfied with management of the facility since it was
acquired. Who is staffing it is no consequence.
Toys state CSC is not profitable because 300 passholders drop out, City staff use
REC bucks and CSC offers specials.
Response: Anyone purchasing a membership cannot drop out. We have a no refund
policy. REC bucks are a benefit to city employees. Specials bring in new members on a
regular basis.
Toys report Club President and Team Tennis Coordinator reserve personal courts
through CTC.
Response: Matches are booked on a seasonal basis, not as individual reservations.
Individuals can only schedule make-up games for rain dates.
Toys report a problem with reservation sheets and open courts being booked upon
cancellation.
Response: CSC has a 24-hour court cancellation policy (which is found in the new
member packet.)
Toys report extended weekend hours result in taxpayers paying for overtime.
Response: Staff are part-time and are not paid overtime. Sports Center hours were
extended to allow more tennis, badminton, and table tennis classes, along with the
extended member benefit.
Toys state CSC fees are 20% of the competitors but we have the highest drop out
rates
Response: Membership continues to grow:
2007 1200 members
2006 1080 members
2005 1015 members
2004 925 members
2003 358 members
2002 630 members
Toys state staff has too much power and give full refunds to unhappy customers.
Response: CSC does not give refunds. This is stated in the membership contract and on
the receipt. The only people ever offered a refund were the Toys, by the Director of
Parks and Recreation, after it became apparent they would never be satisfied with the
operation. The Toys refused the offer.
Toys state the public assumes that all proceeds from lessons benefit our City and
Lifetime Tennis has been at CSC for over 15 years
Response: In Spring of 2006 City Council approved the L TT contract; the City will
receive approximately $250,000 - $280,000 per year for the next 6 years. The anticipated
profit to the City is approximately 1.5 to 1.7 million. It is worth noting that L TT and the
;;J3-J!5
City have an extremely positive partnership, which provides lessons to over 8,000
individuals per year.
Toys report staff told the Toys the CTC rents courts.
Response: CTC does rent courts for special events. As approved by City Council, CTC
members must be annual passholders to play at CSC.
Toys would like to know: How much do residents subsidize CTC?
Response: $0
Toys state 15 years ago CSC was leased for a million dollars per year and for 2
years Parks and Recreation never collected a penny
Response: This information is not accurate. The City did have a management company
who leased the building from Spring 1992-1994, for well under $100,000 per year.
~ 3-/&J
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City of
Cupertino
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3202
(408) 777-3110
Fax: (408) 777-3366
PARKS AND RECREATION DEPARTMENT
December 10, 1997
Grace Toy
P.O. Box 1914
Cupertino, CA 95015-1914
Dear Mrs. Toy,
I have spent time reviewing your numerous communications regarding our tennis court
reservation system at the Cupertino Sports Center. I must say that I am concerned that
you and your husband have recently found our service not to your liking, particularly in
light of the years of support you have given to the Sports Center. None-the-Iess, after
reviewing the information you provided, speaking with several staff members, observing
the procedure first hand on two different occasions, and talking with other passholders, I
have come to the conclusion that your claims of staff manipulation of the reservation
procedure are unfounded. I concede that minor procedural errors may have occurred over
the past several months; but those errors were not committed deliberately to single out an
individual passholder. As you know the first ten minutes of the daily reservation process
are intense and competitive, and our system attempts to provide equal access to all
passholders. I regret that the procedure cannot always meet your needs.
I would like you to know that the management staff will continue to monitor the
reservation procedure and make adjustments where necessary. Thank you for your
support of the Cupertino Sports Center.
Sincerely,
,.,."......~..._~".~
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Stephen G. Dowling
Director of Parks and Recreation
cc Don Brown, City Manager
Don McCarthy, Recreation Supervisor
CJ3-/7
Prin/ed on Recycled Paper
OCT 16 '97 10: 54PM St1:C SV SOOTH SALES
P.1/5
To: Don McCarthy
Fax: (408)777-3137
From: Grace Toy
P.O. Box 1914
Cupertino, CA 95015-1914
(408)257 -9900
Subj: Staff Misconduct Incidences
Total # Pages: 5 (including cover sheet)
Date: October 16, 1997
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d 3 -/8
OCT 16 ' 97 10: 54PM SMCC SV SOUTH SALES
P.2/5
To: Don McCarthy
City of Cupertino
Parks and Recreation
Quinlan Center
Cupertino, CA 95014
Fax: (408)777-3137
Cc: Richard Gonzales
Cupertino Sports Center Facilities Manager
From; Grace Toy
P.O. Box 1914
Cupertino, CA 95015-1914
(408)257-9900
Subj: Staff Misconduct Incidences
Date: October lS, 1997
Thank you very much for your attention regarding staff misconduct yesterday. This is a written statement
of bits and pieces of my experience at the Cupertino Sports Center (CSC). I will point out a few incidences
which lead me to believe that since June, Ms. Susan ofthe morning staff has been treating me differently
from other passholders. This letter will serve you with a better understanding of the ~sues sO that you can
investigate and evaluate your staff performance.
I have also enclosed a copy of the previous letter which my husband and I submitted to you on March 27,
1997. During our visit to your office, both of us expressed our appreciation for your quality staff operation.
We were happy to be treated just like otherpassholders. Each and every member of your staff really "made
our day."
I always respect and abide by CSC policy. In the Spring, I often times arrived at CSC before 8 am for court
re~elVations. I stood at the end of the counter so mat I would not block others when they check in. At 8 am,
Ms. Susan would assign a court to me. It worked out just fine.
In June, my husband and I went on vacation. CSC changed its policy and assigned the fIrst caller priority
in court reservation. When we renuned, I still arrived early and waited at the end of the counter. At 8 am,
after the first caller, Ms. Susan booked a court for someone who came in after me. She took another call
and tended to the third person. She totally ignored me. Afterwards, she informed me tha.t I had to tell her
that f came in to make a court reservation. The next morning, I was the first one again. I infonned 1Ier that
I came in to wait to make a court reservation. At 8 am, she repeated herself as the previous morning. She
did not help me after the first caller. This happened a few times. I reported to Mr. Gonzales that I thought
she did not recognize me after my vacation. A week later, Mr. Gonzales told me that he had brought it up
during the staff meeting. He advised me that Ms. Susan would only take reservations from whoever stood
;;J. 3 -jq
OCT 16 '97 10: 55PM SMCC SV SOUTH SALES
P.3/5
in front of her Even though I did that, she would look up, search around and behind me, and yell out
"Who's next?" She still could not see me. If someone else stood in front of her, she would take his/her
reservation right away. This did not affect me. However, I still mentioned this strange scenario to Mr.
Gonzales.
Monday, September 1, was Labol Day. My husband and I arrived at ese early to make court reservations
and play tennis. Since aU court reservations start at 8 am, I looked at the chaIt and informed Ms. Susan that
I would take court 17 at 8 am, which was the only vacant court. After the fu'st caller, I booked a court for
next Monday evening and informed her that I would head for Court 17. She insisted t.~at since there were
too many people waiting in line, she would only take care of one thing for each person. 1 was somewhat
anxious because Court 17 was the only court available. She helped the second passholder book a court for
next Monday, switched courts for him in the morning, checked ill his guest. and patiently instructed her to
sign in properly. Both of them headed to the court while my husband and I still waited at the end of the line.
1 reported this to Mr. Gonzales. He brought it up during the next staff meeting and he assured me that CSC
service policy applies to every passholder. Inconsistencies like this should not happen.
Occasionally, Mr. Taylor would show up earlier than I would. If he was the first one in line, Ms. Susan
would ask the caller ifhe/she prefer Court 1 or 2. Some members are more comfortable with Court 2. Mr.
Taylor would get Cow1 1. Whenever I was the first one in line, she would assign Court 1 immediately to
the first caller. On November 9, I told Mr. Gonzales about that. It was very obvious that Ms. Susan
manipulated her position. After I have witnessed all this, I have no confidence that she would handle court
reservations according to cse policy if I were not around.
On October 13, I told Mr. Gonzales that the court reseI>"ation chart looked very questionable. I did not go
to CSC on October 9 and D. On both days, Mr. Taylor had Court 1 reservations at 7:30 pm. Unless the
first caller booked a court at 6 pm, the first person in line should not get Court 1 at 730 pm. I believed that
I was the fIrst caller one day. Ms. Susan claimed that Court 1 was already taken at 7:30 pm. It is very easy
to figure out the daily reservation pattern.
It was late and Mr. Gonzales had had a long day. He said that he understood that I did not like the reserva-
tion policy and he was tired of all the complaints from the Toys and Mr. Taylor. He would change the court
reservation order beginning with Court 5. He strongly believes the honesty and integrity of his staff.
As a passbolder, I want to see a prosperous future for CSC. It is my responsibility to report to the manage.
ment any suspicious staff conduct. These mishandlings happened too often with me. It is not my
speculation that Ms. Susan treated me differently. The management has its hardship. It is very diffIcult to
train a morning staff. However, simply by switching around court designation cannot solve th~ problem of
staff m anipulation. The management should not tolerate and cover up an incompetent staff.
I am writing this letter with a lot of IO.\ie and a lot of good wish for ese. As my husband and I stated in our
tirst letter, we remain the 1110st loyal advocate ofeSe management. We appreciate your hard work.
Thank you very much reading both of my letters.
;;; 3~ ;)0
OCT 15 '97 10:55PM StiCe SV :;OUTH SALES
P.4/5
To: Don McCarthy
City of Cupertino
Parks and Recreation
Quinlan Center
Cupertino, CA 95014
Cc: Richard Gonzales
Cupertino Sports Center Facilities Manager
From: Grace and Tony Toy
P.O. Box 1914
Cupertino, CA 95015-1914
(408)257-9090
Subj: Suggestion to Resolve Complaints From Dave Taylor
Date: March 27, 1997
We have been informed by Rich Gonzales, Facilities Manager at the Cupertino Sports Center (CSC),
that passholder Dave Taylor has had numerous complaints regarding the Toys. Tennis is very
competitive. We feel that his complaints have no basis and are personal. This letter serves you with a
bette. lmderstanding of the issues. Please consider our suggestion in resolving the complaints.
Both of us are very active tennis players and we have friends who belong to different clubs. CSC
provides some of the best facilities. We have been members for five years. We appreciate its manage-
ment, staff, facilities, proximity, and cost. We purchase many guest passes, Along the way, many of
our friends also become long term members. In fact, the majority of the Mens' 5.0 team are our
friends. When CSC had a membership drive at the San Jose Arena a few years ago, we volunteered to
introduce CSC to prospective members. A few months ago, Grace informed the Director ofthe Cuper~
tino Parks and Rec Department that we appreciate the CSC management; no one could have done a
better job. We thanked him for his leadership.
Previously, lil{e all other tennis facilities, tennis coun reservations begin at 8 am, first come first
served via telephone. It worked out flne. Last year, CSC began to open at 6 am on weekdays. For two
weeks, Dave Taylor came in early (before 8 am) and reserved court #1 (best lit court) every evening.
Other passholders called in before 8 am Within a short period, the management received numerous
complaints regarding unfair court reservation policies. We are not whiners and thus, did not complain.
The management immediately responded and produced a clear court reservation policy. A copy was
mailed to every passholder and another copy was posted at the CSC counter. Not to anyone's surprise,
Dave Taylor criticized the new policy and wanted to eliminate the "walk on" courts.
The policy clearly states that a match with the same players can reserve no more than 1 1/2 hours of
court time for that match, However, players can reserve different courts if they change the
;) 3 -;;)..f
O~T 15 '97 10:55PM SMCe SV SOUTH SALES
P.5/5
combination, e.g., we play 1/2 hour of Singles followed by 1 1/2 hours of Doubles (this is what we
usually do). We abide by the policies. On the other hand, on at least two occasions, Dave Taylor had
back to back court reservations for the same group of players. We saw Dave Taylor and the same
group ofplayers move to another court after having already played on a court reserved for 1 1/2 hours;
this court was reserved by one of the members of his group.
From time to time, Rich Gonzales would go through the reservation sheet and check on every court.
For example, a few months ago, Tony reserved court #1 at 6:30 pm for one hour and Grace reserved
the same court at 7:30 pm for I 1/2 hours. At 7:30 pm, Rich checked the court and questioned us as t()
why we had back to back court reservations. We directed his attention to Neil, who was packing his
bag. Neil said that he was hitting with Tony for an hour and was ready to leave. In fact, Rich Gonzales
had discovered a few extensive court reservations from other groups but never the Toys.
Recently, it is harder to reserve courts because the league season is just about to begin. This happens
to all the clubs in the Valley. For example, it is extremely difficult to reserve courts at Almaden Valley
Athletic Club, Decathlon Club, and the Las Palmas Tennis Center; all the members know about the
court Limitations and cope with it just fine.
At CSC, prime time is very short, approximately between 6:30 pm and 8:30 pm. Furthermore, there
are many "last second: cancellations and "no shows." CSC has a very fair and thoughtful court reserva.
tion policy. Passholders who really want to reserve a court can come in early, such as Grace and Dave
Taylor who wait at the CSC counter before 8 am. Other passholders who master the clock can call in
at 8 am to reserve courts. Some passholders would come in for "walk onll courts. If they do not get it
right away, they would work out or attend an aerobics class for an hour prior to playing tennis. The
majority of the players do not want to take on the responsibility of reserving a court; thus, the names
on the court reservation sheet are limited, as those players who are willing to make an effort in reserv-
ing a court are Limited. Some players avoid the prime time and come in either before and after; these
players either make "last second" reservations Or do not make reservations at all.
We are two individuals with different passholder nlUubers. We book different courts for different
match combinations. We always cancel one court if we are late or if there is any change of plan. We
do not abuse the system but instead, just simply abide by the policies.
As in any organization, there is always people who complain about different issues. In the past, Dave
Taylor has had numerous complaints and holds a record of misconduct. Since he was not reprimanded
in the past, he continually complains unreasonably and stirs up trouble by manipulating others into
following him, In our opinion, the CSC court reservation policies are very fair and reasonable. Any
further change would create chaotic situations; the people complaining cannot suggest a policy more
fair to everyone than the one in existence. CSC should uphold its policy and the management group
should hold their ground firm. Those not happy with the policies are more than welcomed to join other
clubs. This is the easiest way to create a scenario that would please everyone. .
d 3-;),r
NOV 11 '97 10:28AM SMce SV SOUTH SALES
P.l
To: Don McCarthy
City of Cupertino
Parks and Recreation
Fax: (408)777-3137
From: Grace Toy
P.O. Box 1914
Cupertino, CA 95015-1914
(408)257 -9900
Subj: Cupertino Sports Center Incident
Date: November 11, 1997
Total #Pages: 3 (including cover sheet)
;;; '3 - CJd-
...
NOV 11 ' 97 10: 28A'1 SM:e SV SOUTH SA....ES
P.2
To: Richard Gonzales, Pacilities Manlser
Cupertino Sports Center
21111 Stevens Creek Blvd.
Cupertino, CA 95014
Cc: Don McCarthy, City of Cupertino Parks and Rec:reation
Steve Dowling, Direc;tor of Parks and Recreation
From: Grace Toy
P.O. Box 1914
Cupertino, CA 95015-1914
(408)257-9900
Subj: Fill-in Detail. on CSC Staff Report
Date: November 10, 1997
I was surprised to receive your call on Friciay. November 7, regarding the incident that happened the
previous night. Your staff made a false report. I asked you to list the jobs done by your staff member
alonl with the Toys' wrongdoing. You said thlt it was not necessary. I also asked you not to accuse
Lifetime Tennis. Their staff had nothing to clo with this cue.
As per our conversation, you said that your staff reported the Toys' pressuring her to turn on the lights
for courts 1 and 12 on Thursday night even though court 12 was dry. She said that the Toys played on
court 1, which was very wet and dangerous. You reminded me that once the staff had made an ...ess.
ment and decided that the couna were not playable, I should abide by her decision. I totally agree.
Unfortunately, she did not do her job.
During the rainy season, court conditions change frequently. The staff should IlseSI the situation just
before d.ecidinl on cloling the courts. She should not rely on her assessment a few hours earlier.
The Toys arrived at CSC at 8:30 pm. Court 1 wal absolutely playable (a standard tennis court has 16
feet between the baseline and the back fence. On court 1, there was 21 feet between the baseline ancl
back wall. There were a few small puddles just next to the south wall. The rest of the court was dry.).
As we entered, two staff members were on duty while one mile mend was at the lobby. As we were
ready to go onto the courts, the light was turned off. The Toy. went out to the lobby. One staff member
wu behind the counter. We told her that court 1 was all dry and playable. The male friend came into
the lobby from outside. He had a camera. While I turned around, he took a picture with a flashbulb. I
was not lure whether I was in the picture or not. He then left right away. We then continueci our
conversation. The staff said that it was wet earlier. However, she could not recall when she lilt
checked the court conditions. Obviously, she did not check it just before she turned off the lighm. At
8:30 pm, she did not access the court conclitionl.
d 3-;)3
NOV 11 '97 10:29AM sr1Ce SV SOUTH SALES
P.3
. .
It wu a very peaceful, friendly c;onversauon. There was no argument. Jeannine (of Lifetime Tennis,
not sure of her nll11e) was about to leave. When she overheard our discussion, she saici that she ju.t
came in frgm outside and tOurt 1 "as rompletely dry. I also casually mentioned that when I drove
by, it seemed that court 12 was OK. Jeannine confirmed. my observation that Lifetime Tennis dried out
court 12 at 5 pm and conducted leSions the whole evening.
After the CSC staff obtained sufficient, reliable court conditions from the Toys and Lifetime Tennis,
she decided to open up the courts. She then uked UI which court we wanted to play on. We asked her
to twn 011 the lightl for courts 1 and 12. Since we hac! new balls, we did not want rollina balls to get
wet on eourt 1. We waited on court 12 for the lights to come on. A few minutes later, only courts 1 and
11 were lit. We then moved to court 1. At 9 pm, CSC staff came out to lock the doors (we do not know
when me doors should be locked). Ten minutes later, lishts on coW't 12 came on. If court 1 had been
wet and danSefOU11I claimed by staff, we would have moved to court 12. We stayed on court!.
CSC staff did not report that Jeannine c;oncUlTeQ with our observation. When 1 t~ld you, you were very
upaet and you claimed that you hact to tell Lifetime Tennis to "mind their own bUlinesl" and that they
were intervening with your staff operations. I reassured you that Jeannine had just joined our friendly
discussion reiardinl court conditions. However, you were very upset that Jeannine had sided with the
Toys.
I also rec:.a1la Friday NiJht Tennis Social incident a few months bac:k. Lifetime Tennis usually reserves
eight coUl18. Sin" it was along weekenci, participants were sparse. At 7:05 pm, the Toys were headins
to a baek court. Prom the balcony overlooking court I, we saw that all the players for the Friday Night
Social were leaving court 1. When we asked John of Lifetime Tennis, he laid that he did not need court
'1 for the r8st of the evening. Playets would use courts 2. 3. and 4. It just happened that you had
overheard our conversation. You questioned John rilht away. He explained to you that since there
were only twelve players. they chose to uae courts 2, 3. and 4 so that it would be euier to switch every
half hour. He wu accommoc1atina the playets. You then gave him a lecture. While we walke4 away,
John asked you why you especially gave him a hard time. Since the social players refused to use court
I, he wu helplesl. A few minutellater, someone was playing Siniles on court 1. They played for
more than an hour; they were not there for the Friday Night Social.
We understand that Lifetime Tennis is under your roof. Their staff is very friendly to the Toys. but
we've never as.kecl for any privileges. Pleue do not Sive them a hard time when the Toys just happen
to be there.
With all the staff incompetence on Thursday nisht. the Toy. did not complain to you. The staff report
was a falae accusation. You elected to trust her and pointec1 your tinier at Lifetime Tennis and the
Toys. Please reconsider all the info we have submitted and use it to your best judgement. The TOYI
still remain the bigtat CSC fan.
Thank you very very much for your attention to this mattel'.
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10300 Torre Avenue
Cupertino, CA 95014
(408) 252-4505
Memorandum
To: Steve Dowling, Director of Parks & Recreation
CC: Don McCarthy, Recreation Supervisor
From: Richard Gonzales, Recreation Coordinator
Date: December 9,1997
Subject: Grace Toy complaint of staff manipulation of court scheduling.
Grace Toy submitted the following complaint to you on December 8, 19~7:
My husband was the only caller around 8 am this morning. She told him he was too early.
After he asked her what time it was, she switched to the computer clock. It read 8:00:07.
She reluctantly assigned him the first court.
I spoke with the Susan Flores, who was the staff person in question, about the incident. According
to Susan, Tony Toy called a little before 8 am. He asked if Grace had made a reservation? Susan
replied that Grace had not because it was too early. He then asked what time it was now. Susan
checked and it was now several seconds after 8 am. Even though Tony called before 8 am and nor-
mally we would ask him to call back after 8 to make the reservation Susan took the reservation at
that time because there were no other callers.
Sport Center policy does not allow us to put people on hold prior to 8 am or engage in conversation
with the person calling so that their call will become "eligible" to make a reservation when 8 am rolls
around. However, I support Susans' decision to take Tony Toys' reservation even though he called
before 8 am because there were no other callers at 8.
This situation is sometimes difficult because prior to 8 am staff answers the phone by saying,
"Cupertino Sports Center this is speaking, how can I help you?" Because we do not
know if someone is calling for a reservation or some other business. After 8 am, and through our
morning rush period, staff has been instructed to simply say, "Cupertino Sports Center, please hold."
Prior to 8 people will sometimes engage in conversation with staff until 8 and then get upset when
asked to call back. If there were other calls coming in at that time Susan would have asked Tony to
call back.
a 3 ~;;;ft;