Nikki,
As school band director for many years (middle and junior high school) I've taught this many times. And it works just as well for adults with bells.
I would strongly suggest teaching them the piece in 4. Forget the cut-time until they know the piece and are comfortable playing it well. Then gradually start playing it faster, increasing tempo slightly each time they play it. If they are unfamiliar with the sixteenth note counting system that you mentioned (which works very well) don't confuse them with it now. As you get it up to tempo they may be looking for a new way to count it. Even if they are still counting in 4, what's the difference as long as they can play it up to tempo.
As far as your conducting pattern goes, when it becomes too difficult to conduct the 4 pattern, conduct it in two and suggest a different way for them to count it then. They'll already know the music and can concentrate more on the counting system. But again, how they are counting is not the issue as much as playing it correctly.
Jim Rossetti
Area 2 Past Chair