strathcona gardens workbook budget workshop november 22, … · the workshop is the commission’s...

Strathcona Gardens Workbook Budget Workshop November 22, 2017

Table of Contents

Introduction

1. Administration

2. Client services and concession

3. Aquatics, fitness and rehab programs

4. Facility operations

5. Ice and other programs

6. Business cases

7. Capital plan and proposed adjustments



Introduction

This workbook is provided as a summary of the key elements contained in the Regional District’s 2018-

2022 Financial Plan presented for discussion at the Strathcona Gardens Commission budget workshop on

November 22, 2017.

The 2018-2022 financial plan continues to advance previously initiated significant projects while supporting

efficient service delivery. The workshop is the Commission’s opportunity to consider adjustments to the

financial plan to ensure alignment with its values and goals.

Changes to the financial plan resulting from the Commission’s resolutions will be included into the Regional

Boards summary budget on December 7, 2017. At the February 12, 2018 board meeting, those changes

will be included in the recommended budget for the Board’s review. The recommended budget will include

estimates of the financial implication to the average residential property and projections for reserve fund

balances. At that point the Board will be able to review the budget and request further changes if they wish

prior to the adoption of the 5-year financial plan deadline of March 31, 2018.

Included in this workbook are the following elements:

Service synopsis and overview – this summary provides the purpose, key facts, service considerations,

challenges and other aspects relating to the service as a whole or for each operational division, and

includes the key performance indicators that measure success.

Detailed budget report – the five-year budgeted revenue, expense, capital sources of funding and

expenditures are detailed in this report with comparative figures from the previous two years.

Capital plan – the Strathcona Gardens capital plan is reproduced as included in the 2018-2022 budget.

This document includes implications for taxation, reserves, and debt, which will be updated when

adjustments to the capital plan are confirmed.

Business cases – this section contains business case summaries as identified by staff. Each business

case has been ranked on a scale of 1 to 5 (1—highest priority, 5—lowest priority) based on urgent need or

implication to the service. Each recommendation identifies sources of funding for approved projects.

2018-2022 Financial Plan Budget Workshop

Strathcona Gardens Recreation Complex Administration 640

Service Considerations

• Development of new partnership opportunities to leverage additional funding and grants

• Commitment to providing inclusive programs to complement the diverse and aging population demographics

• Progressing planning activities to attract grant funding for the Strathcona Gardens redevelopment.

Challenges

• Generating revenue to supplement diminish-ing arena usage

• Changing demographics and the need for more tailored services

• Customer expectations and ability to meet service expectations with existing resources

• Insufficiency of operational reserves

Key Facts

• The facility has two NHL-size arenas, an aquatic facility and a number of multi-purpose rooms open to the public year round.

• Service participants include the City of Campbell River and Electoral Area D (Oyster Bay-Buttle Lake)

• Maximum requisition $1.588/$1,000 net taxable value of land and improvements ($8,412,759 for 2017)

Purpose

To provide recreation and leisure opportunities for people of all ages and abilities by promoting social, active and healthy living.

Debt servicing

The 2018 financial plan includes $70,000 for annual debt servicing for the Rod Brind’Amour arena boards and floor renewal project completed in 2014. This debt will be fully retired in 2018.

Estimated average 2017 Tax Rate

$0.8012/$1,000 (residential assessment)

$240 for a $300,000 home

Reserves and surplus

Capital reserve balance, including funds for facility redevelopment, is approximately $2.6 million at 2017 year end. The balance will build to $5.4 million in 2020 at which time funds would be used to leverage grant funding for facility redevelopment.

Future expenditure reserve balance at 2017 year end is $75,000, with no further contributions planned. In 2018.

Appropriated surplus balance at 2017 year end is $275,000 which is sufficient to fund approximately two weeks of operations.

Baseline Budget Highlights

• Increased operational expenses

• Surplus prior year - carry forward project including SG Rec-reate project.

5-year requisition projection

2019-2022: $240-$243 annually

or a $300,000 home


Strathcona Gardens Recreation Complex Client Services and Concession 641

Key Facts

• Administration staff are available from 5:30 am to 9:30 pm on weekdays and 9:30 am to 9:30 pm on weekends with the exception of holidays and other facility closures (for maintenance, etc.)

• The front desk employs 11 (6 full-time and 5 part-time) staff

• The concession operates approximately 45 hours/week (includes evenings and weekends) for 6 months of the year, October through March

• The concession employs 7 (2 full-time and 5 part-time) staff

• Concession generates an average of $100,000 in sales annually

Department Summary

• Administration staff provide programming, facility and services information and support to all users of the facility (includes registration, rentals, etc.)

• Concession operations include food preparation and service to all facility users


• Review concession hours and product lines to increase customer usage

• Administration hours for expanded spring and summer hours

• Marketing efforts around on-line registration and promotion through social website and new website.

Challenges

• Labour and benefit increases associated with backfilling positions (scheduled medical coverage)

• Explore ways to reduce the subsidy associated with the concession operation.

Key Performance Indicators

• Customer retention • Customer satisfaction

• Number of payment transactions • Facility utilization

016-2020 Financial Plan Recommended Budget

Strathcona Gardens Recreation Complex Aquatic Programs 642


Strathcona Gardens Recreation Complex Aquatic Programs 642

Key Facts

• The swimming pool employs 40 (10 full-time and 22 part-time) staff

• Offers a 6-lane, 37.5 meter main pool, a secondary zero-entry leisure pool with spray features, giant inflatable pool toys, waterslide, rope swing and diving board

• The aquatic centre also features steam and sauna rooms and provides the access to the weight room

Department Summary

• To provide safe, clean and customer friendly aquatic programs and services that meet the diverse programming needs of the community.


• Waterslide considerations

• Consider expanded service hours in spring and summer

• Lifeguard requirements for a facility-wide emergency response plan.

Challenges

• Main pool basin and related mechanical/electrical systems have reached life capacity and are in need of major upgrades/replacements

• Equipment failures are beginning to affect service levels

• Pool space and time is at a premium, with limited program and service growth opportunities

• Unable to accommodate public requests for pool rentals, additional programming or swim times.

• Humidity issues cause safety concerns for staff and HVAC equipment in this area has reached its life capacity.


• Program registrations and participation retention

• Customer satisfaction levels

• Attendance at special events


• Expand and relocate weight room as part of the redevelopment plan.

• Increased size of fitness studio and/or addition of multipurpose spaces

• New therapy pool and equipment (water treadmill, etc.) for added programming options


Strathcona Gardens Recreation Complex Fitness & Rehabilitation Programs 642


Strathcona Gardens Recreation Complex Fitness and Rehabilitation Programs 642

Key Facts

• The fitness and rehabilitation division employs 9 staff (5 full-time/4 part-time)

• Serve approximately 4,500 people through physician referrals in adapted fitness

• Partner with and receive funding from Island Health to deliver: Take Heart and Chronic Disease Management (CDM) programs

• Work in partnership with insurance agencies (ICBC and others) for rehabilitation referrals

Department Summary

• Provide fitness and rehabilitation programs for people of all ages and abilities.

• Deliver innovative community-based programs to improve quality of life for those living with chronic disease, and health and wellness management.


• Participation and usage levels

• Membership sales and retention

• Instructor quality (gauged through patron feedback/comment cards)

• Number of partnerships and contracts

Challenges

• Weight room is small, poorly located and not wheelchair accessible

• Fitness studio is small and in isolated part of the facility

• HVAC system in both the fitness studio and weight room is not adequate.

• Fitness/multi-purpose space in facility is at a premium

• Limited opportunity for program and service growth due to the lack of available or adequate space.


Strathcona Gardens Recreation Complex Facility Operations 643

Key Facts

• The complex is 140,000 sq. feet with 2 NHL-size hockey rinks, a leisure ice ar-ea, main pool , leisure pool and hot tub, steam room, sauna, weight room and fitness studio, multi-purpose rooms, offices and user group rental spaces.

• The operation division employs 20 staff (13 full-time/7 part-time)

• Accounts for 28 per cent of the overall Strathcona Gardens Recreation Complex operating budget..

Department Summary

• Create and maintain a safe, clean, functional and sustainable building

• Identify design improvements and project management

• Initiate improvements to minimize energy and resource consumption


• The balance of maintaining systems and facility infrastructure at the end of their lifespan and the planning for a revitalized recreation complex

• Development of an asset management and preventative maintenance program

Challenges

• Aging infrastructure

• Maintenance of assets to ensure continued usability, performance and longevity

• Equipment replacement costs

• Asset management planning

• Aging workforce


• Improvements/streamlining of processes, products and services

• Percent of planned maintenance versus reactive maintenance ratio

• Utility consumption costs


Strathcona Gardens Recreation Complex Ice & Other Programs 644


Strathcona Gardens Recreation Complex Ice and Other Programs 644

Key Facts

• The ice and other division employs 11 staff (3 full-time/8 part-time/

seasonal);

• Programs include public skates/drop-in hockey sessions, skating and other

ice programs, sports and other dry floor activities.

• This department also supports the planning and coordination of the annual

Upper Island Safety Conference and other events that help to increase

revenue during ice out season.

Department Summary

• To provide quality ice skating, ice hockey, lacrosse, floor and ball

hockey, roller derby, day camps and other programs to enrich the lives

of individuals of all ages and abilities.


• Installation of arena boards and new benches for leisure ice area

• Installation of large screen and projector to support special events

• Construction of an office in the leisure ice area


• Number of dates booked for ice and dry floor activities

• Attendance in programs

• Customer satisfaction

Challenges

• Slow decline in both ice and dry floor rentals primarily due to a decrease in

adult hockey, lacrosse and roller hockey rentals.

• Insufficient multi-purpose space available for running additional crossover

programs (such as hockey camps, preschool ice programs etc.).

• Children currently take lunch breaks etc. in the change rooms.

• Demand for certain programs is greater than space available (such as

evening public skating options, ice and day camps)

• The use of the leisure ice for goalie training and private lessons

during prime hours. Puck drills and other activities that go beyond the

suitability for the leisure ice surface.

Strathcona Gardens 2017-2021 Capital Plan Adjustments 2017-2021 Projects

Project or Program

2017-2021 Approved

Capital Plan

Recommended Adjustments Year Amount

Fire alarm system upgrade 2018 $50,000 Reduce amount from 2017 ($74,000)

based on updated costs. Carry forward

Facility PA/stereo upgrade 2018 $40,700 Eliminate this from the capital budget due

to Rec-reate project.

Lighting upgrade—Arena #2 2018 $14,267

Move to 2018

Support project through a rebate

application to BC Hydro to recover some

of the costs. (see business case)

Fitness and rehab equipment

2017

$50,000

Carry forward carry forward 2018

Multi-function device replacement 2017 $30,000 Carry forward to 2018

Aquatic rock climbing wall 2020 $27,000

Move to 2020

Coincides with facility redevelopment.

Special note: funds allocated to project

insufficient to support the project due to

engineering costs on this equipment.

Leisure Ice curtain/track system 2017 $17,500 Carry forward to 2018

Business Case Summary Arena #2 Lighting

Priority: 1 1 High

5 Low

1. Executive Summary Lighting has undergone many technological advancements in recent years. Replacing the current gas-vapor lights in Arena #2 with high efficiency LED lights will lower electrical operating costs, reduce environmental impact and improve the overall aesthetic of the facility.

2. Business Problem and Opportunity Currently there are several different lighting fixtures installed in both arena #2 and the leisure ice. At an average run time of 21 hours per day at $.055kWh these lights account for approximately $11,463 per year in operating costs. This cost does not include the fluctuating demand charge.

Replacing the current gas vapor lighting with high-efficiency LED’s will improve efficiency by at least 50%. This would mean a savings of over $5,500 per year. A $5,500 savings would mean a payback of 7.5 years. BC Hydro currently offers a rebate program for upgrading lighting technology. While rebates vary from fixture to fixture we can expect between a 10-15% rebate in total. Limitations of the current technology include slow warm up times and cool down times between cycles. This limits functionality and can cause program interruption during a temporary loss of power. Newly installed LED fixtures however, would switch on and off instantly and require no warm up and cool down. This functionality, in addition to an updated lighting control system, would allow precision scheduling of the arena lights. Scheduling lighting in the arena would minimize runtime, increasing efficiency and extending the life the lights.

3. Proposed Project Objectives Replace all the current light fixtures in Arena #2 and the leisure ice with high efficiency LED lighting, and;

Install digital lighting control system.

4. Business Risks The lighting system on Arena #2 and the leisure ice areas are aging and costly to maintain and operate.

BC Hydro currently offers rebates for lighting system upgrades but may decide to lower or eliminate the incentive in the future.

5. Cost Benefits Analysis and Proposed Source(s) of Funding a) Total Costs FY18 FY19 FY20 FY21 FY22 Five Year Total

Capital Costs $14,267 $ $ $ $ $14,267

Operational Costs (5 Years) $ $ $ $ $ $

Total $14,267 $ $ $ $ $14,267

b) Benefits

Tangible Benefits

Reduced electricity consumption. Reduced environmental impact Long life expectancy will reduce maintenance costs over lifespan. BC Hydro currently has standing rebates for fixture replacement. Scheduling of lights will reduce runtime – lowering operating costs and extending fixtures life.

Intangible Benefits Improved light quality increases programming capacity – some users only book in Rod Brind’Amour due to better lighting Instant on/off/dimming increases program flexibility Program specific lighting requests with DDC controlled and schedules lighting

6. Summary Recommendation

THAT the 2018-2022 Financial Plan be amended to include the additional funds of $14,267 in 2018 for the replacement of the lighting system in Arena#2 and the leisure ice area.

Location Number of fixtures Wattage Yearly Operating Cost

Rink #2 Ice Surface 24 2x 400W $8,499

Rink #2 Perimeter 16 178W $1261

Leisure Ice Surface 13 175W $1006

Leisure Ice Perimeter 9 175W $697

TOTAL - - $11,463

Project or Program Priority

Capital

Costs

Recommended

Funding Source

Arena #2 exterior roll-up door • Full replacement - past life expectancy (asset management plan noted 2013)

1 $20,000 Capital reserves

Direct Digital control (DDC) system for ice plant • Remove all existing network control systems from ice plants • Install a new network DDC system in both ice plants and dehumidifiers • Re-wire arena #2 motor control centre panel and control relays


Increase funding for replacement of weight room and rehab equipment (2018) • Under value based on the asset management plan for equipment replacement.


Ice Edger • Replacement costs • New battery powered electric units


Strathcona Gardens 2018 Capital Business Cases Summary

Business Case Summary Arena #2 Roll-Up Doors

Priority: 1 1 High

5 Low

1. Executive Summary The Zamboni bay in arena #2 contains two mechanically operated doors that allow access in and out of the ice surface. Both doors are past their life expectancy and due for replacement as per the SRD’s asset management plan. High frequency of use and potential security implications make the exterior door a high priority replacement.

2. Business Problem and Opportunity

The arena #2 interior and exterior Zamboni bay doors at the end of their life expectancy and showing early signs of failure. Both doors were fully amortized and slated to be replaced in 2013 as per the SRD’s asset management plan and are showing early signs of failure. Failure of either of the two Zamboni bay doors could impact the security of the facility and SRD assets. These doors also provide an important environmental barrier between the outside elements, the heated Zamboni bay, and the cooled arena.

3. Proposed Project Objectives Replace the Arena #2 exterior and exterior roll-up door in 2018.

4. Business Risks • Potential emergency replacement in the case of irreparable failure • Additional staff costs to secure facility while sourcing replacement • Loss of environmental control would mean an increase to utility costs.

5. Cost Benefits Analysis and Proposed Source(s) of Funding

a) Total Costs FY18 FY19 FY20 FY21 FY22 Five Year Total

Capital Costs $20,000 $ $ $ $ $20,000


Total $20,000 $ $ $ $ $20,000

b) Benefits Tangible Benefits

Intangible Benefits


THAT the 2018 - 2022 financial plan be modified to include $20,000 in 2018 for the replacement of the Arena #2 Zamboni bay interior and exterior door, to be funded from the Strathcona Gardens Recreation Complex capital reserves.

Business Case Summary Ice Plant DDC System

Priority: 1 1 High

5 Low

1. Executive Summary The arena #2 ammonia chiller replacement in 2016 brought to light several electrical and control issues with the ice plants at Strathcona Gardens. The installation of a direct digital control (DDC) system and upgrades ice plants electrical panel would mitigate these known issues. The installation of this system would also provide additional benefits to the operation of the ice plants, such as advanced plant monitoring and set-point scheduling.

2. Business Problem and Opportunity Since the installation of the new ammonia chiller in 2016, compressor sequencing has been affected in arena #2’s ice plant. Additions of small semi-integrated control systems and rewiring of the motor control center (MCC) over the years has contributed to a fragmented electrical and control system. The installation of a new DDC system along with rewiring of the MCC will fix the compressor sequencing. Moving to a networked DDC system has many additional benefits, these include:

• Remote access – networked controllers allow secure access to monitored equipment. This can save on repair costs by allowing contractors to run remote diagnostics.

• Advanced plant monitoring – customizable alarms and equipment parameters allow advanced notification of malfunctioning equipment.

• Energy modeling – equipment’s energy consumption will be monitored and logged in an energy dashboard, where it will be modelled and operating parameters adjusted to increase efficiency.

• Set-point scheduling – a DDC system will allow set-point scheduling for night set-backs and different user group’s needs. Figure skaters prefer warmer ice, hockey players colder. Tournament weekends and Storm games require colder ice yet. By optimizing the ice plant’s set-points to meet the facility’s needs, compressor runtime will decrease, lowering energy costs.

3. Proposed Project Objectives

Remove all existing networked control systems from the Rod Brind’Amour and Arena #2 ice plants. Install a new networked DDC system in both ice plants and dehumidifiers. Re-wire arena #2 MCC panel and control relays.

4. Business Risks Improper compressor sequencing in the arena #2 ice plant is causing additional wear and tear on the compressors. This inability to sequence the compressors properly also prevents hour equalization. This increases maintenance costs and shortens the life of the compressor that runs more frequently. The lack of set-point scheduling is preventing a great deal of energy savings. An estimated 40% of the facilities electrical consumption is for refrigeration. Simply programming a night set-back temperature would result in approximately 2% reduction in energy consumption. Currently, if an equipment failure caused a plant shutdown, a rise in ice surface temperature – unnoticed by staff – could lead to program interruption or loss of the ice surface. Digital monitoring of these temperatures would mean a call-out to our emergency contact list, long before this happened.



Capital Costs $75,000 $ $ $ $ $75,000


Total $75,000 $ $ $ $ $75,000

b) Benefits

Tangible Benefits Proper compressor sequencing Energy savings through schedule/temperature optimization Advanced notice of equipment failure

Intangible Benefits Increase in ice quality Improved customer satisfaction Energy modelling and data collection

Business Case Summary Ice Plant DDC System

Priority: 1 1 High

5 Low

6. Summary Recommendation THAT the 2018-2022 financial plan be amended to include $75,000 in 2018 for the installation of a direct digital control system, to be funded through Strathcona Gardens Recreation Complex capital reserves.

Business Case Summary Weight room and Rehabilitation

Equipment Replacement

Priority: 1 1 High

5 Low

1. Executive Summary Strathcona Gardens puts all the weight room and fitness studio equipment on a replacement schedule based on expected life expectancy. The philosophy that has been applied is to stagger the equipment replacement costs an amount each year based on the asset management plan. This alleviates the need to do a complete overhaul every 7 – 10 years. It also allows the operation to replace the equipment before the annual repair costs become greater than its value.


The approved five-year financial plan sets the replacement cost of the weight room equipment at $18,000, this amount is not enough to enough to fund the asset management plan in 2018. The equipment set to be replaced in 2018 includes; 2 steppers, 2 ellipticals, and the dumbbells at a total of $38,200.

3. Proposed Project Objectives To replace the equipment in 2018 based on the asset management plan.

4. Business Risks If the equipment is not replaced it means that the some of the older machines could be down for extended periods of time while waiting for parts or other service requirements. This will affect the customer experience and could possibly reduce the amount of revenue we receive from programs and services.



Capital Costs $38,200 $ $ $ $ $38,200


Total $38,200 $ $ $ $ $38,200

b) Benefits Tangible Benefits Improved equipment for weight room and fitness studio, newer technology incorporated

Intangible Benefits Potential increase in revenue, cost-savings for maintenance and repairs


THAT the 2018 financial plan be amended to include $38,200 to support the replacement of weight room and rehabilitation equipment, to be funded from the Strathcona Gardens Recreation Complex capital reserves.

Business Case Summary Ice Edger

Priority: 2 1 High

5 Low

1. Executive Summary Increasing maintenance costs on current equipment reflects the need for replacement.

2. Business Problem and Opportunity Ice edgers are used every day to maintain the facilities ice surfaces. The facility currently owns three of these which are approaching end of life. Increased maintenance costs and safety concerns about emissions would be alleviated by replacing these propane powered machines with battery powered electric units.

3. Proposed Project Objectives Replace two of the propane powered ice edgers with new battery powered electric units over the next four years. This would leave a single propane unit as back-up to the two electric units.

4. Business Risks Current units run on propane gas which affects the air quality of the facility.

Units are at the end of their life cycle and maintenance costs are increasing.

5. Cost Benefits Analysis and Proposed Source(s) of Funding a) Total Costs FY18 FY19 FY20 FY21 FY22 Five Year Total

Capital Costs $8000 $ $ $8,000 $ $16,000


Total $8,000 $ $ $8,000 $ $16,000

b) Benefits

Tangible Benefits New unit will have less breakdowns and be more cost effective to maintain Runs on electricity – less harmful emissions and more environmentally friendly.

Intangible Benefits Improved air quality in the arenas will reduce complaints and provide peace of mind to public.


THAT the 2018-2022 Financial Plan be amended by $16000 for the replacement of two propane ice edgers with battery powered electric units, to be funded through Strathcona Gardens Recreation Complex capital reserves.

Business Case Summary RECREATE Strathcona Gardens

Phase 3 Design Work

Priority: 1 1

High 5

Low

1. Executive Summary

Commission has provided direction for the future of Strathcona Gardens. Considerable work has been undertaken over the last two years to develop a feasible redevelopment concept that has support from the community. A preferred design concept and cost estimate has been endorsed by the Commission. This business case requests additional funding to proceed with further design work in 2018 to best position the project for anticipated provincial and federal grant funding.


Through the Needs Assessment Study (2015) and building condition study (2016) it is evident that the Strathcona Gardens is a well-loved but aging facility that is not meeting the needs of a growing community. The main pool basin and key plant components are nearing or past their useful life leading to higher service costs and risk of failure. The culmination of these factors has led the Commission to plan for a wholistic redevelopment of the facility that will address aging infrastructure, seismic risks, integrate energy efficiency measures and provide a vibrant social and recreational hub for the community now and into the future. In terms of opportunity, the federal government has announced funding for recreational infrastructure which is anticipated to made available in 2018. This funding will be extremely competitive, and it is important that this project is sufficiently progressed to be considered.


To build upon previous work, it is suggested that the Commission consider moving forward with further design work. The next phase is schematic design. With related testing/advice, this phase is likely to cost between $400-500,000, subject to market response. This phase would further develop the preferred concept and bring the project cost estimate to Class C (+/- 15-20%) and would be able to be completed by mid-year provided there are not major shifts to the concept. Schematic design is typically the point at which many local governments will pause a project before proceeding with detailed design and contract administration, which on a project of this scale may be approximately $2M.

4. Business Risks

A good deal of resources has been invested in this project to date and that has put this project on a solid footing with community support. It is important to continue to build on that investment and to position this project for success in anticipated 2018 funding rounds. Should anticipated grant funding fail to materialize or be insufficient for this project, the Board will need to consider whether to proceed with this project. Should the project fail to proceed, these costs may result in unrealized benefits.


These costs are for design work for a major redevelopment of an asset and may therefore be deemed to be capital costs. It is recommended that they be drawn from the capital reserve established in 2016 for the Strathcona Gardens redevelopment.


Capital Costs $500,000 $ $ $ $ $500,000


Total $500,000 $ $ $ $ $500,000

b) Benefits

Tangible Benefits Long and short-term key asset improvement, reduced operational costs, improved revenue and reduced risk.

Intangible Benefits Community development,


THAT the 2018-2022 Financial Plan be amended to include $500,000 to advance the RECREATE project in 2018, to be funded from the Strathcona Gardens Redevelopment Capital Reserves.

Business Case Summary RECREATE Strathcona Gardens

Capital Reserve Contribution

Priority: 4 1

High 5

Low

1. Executive Summary

Commission has provided direction for the future of Strathcona Gardens. Considerable work has been undertaken over the last two years to develop a feasible redevelopment concept that has support from the community. The preferred concept has a cost estimate of $47.3M. In 2016, the Board approved the establishment of a capital reserve for this project to build a local contribution of $7.26M over 7yrs. This was based on the desire to provide 1/3 funding for a $21.8M facility. Recent indications are that future federal/provincial funding contributions will total as much as 83%, requiring a reduced local contribution of approx. 17%. On a $47.3M project, that contribution would be approx. $8.04M. Funded over the remaining 5 years, this requires an increase contribution to capital reserves of $781,000 or $156,200 per annum.


Through the Needs Assessment Study (2015) and building condition study (2016) and Feasibility Study (2017) it is evident that the Strathcona Gardens is a well-loved but aging facility that is not meeting the needs of a growing community. The main pool basin and key plant components are nearing or past their useful life leading to higher service costs and risk of failure. The culmination of these factors has led the Commission to plan for a wholistic redevelopment of the facility that will address aging infrastructure, seismic risks, integrate energy efficiency measures and provide a vibrant social and recreational hub for the community now and into the future. In terms of opportunity, the federal government has announced funding for recreational infrastructure which is anticipated to made available in 2018. This funding will be extremely competitive, and it is important that a sufficient local contribution is in place to leverage provincial and federal funding.


To have a local contribution equal to 17% of the estimated project costs to leverage anticipated funding through the federal and provincial governments under the Infrastructure Canada: Investing in Canada plan.

4. Business Risks

The most significant risk is that the provincial/federal funding may not materialize to the extent that is anticipated. The cost sharing arrangements are currently being negotiated and program detail will not be known until next year. Another significant risk at this preliminary stage is inaccurate cost estimates and project cost escalation. The costs will continue to be revised with greater degrees of accuracy as we move through future project stages.


The contribution to reserve is currently $1.038M per annum. To reach the new target, the contribution to reserve would need to increase by approximately $156,200 per annum over the next 5 years though taxation.


Capital Costs $156,200 $156,200 $156,200 $156,200 $156,200 $781,000


Total $156,200 $156,200 $156,200 $156,200 $156,200 $781,000

b) Benefits

Tangible Benefits Long and short-term key asset improvement, reduced operational costs, improved revenue and reduced risk.

Intangible Benefits Community social and economic development, health and well-being.


THAT the 2018-2022 Financial Plan be amended to increase the contribution to reserve by $156,200 per annum over 5 years for the RECREATE project.

Project or Program Priority

Operational

Costs

Recommended Funding

Source

Wall flashing above waterslide and other deficiencies • Identified in the Stantec condition assessment report - November

2016 • Repair wall flashing above waterslide • Remove rust and repaint structural steel members of water • Replace joint at waterslide wall penetration with flexible joint to

prevent cracking in PVC tube.

1 $33,000 Requisition 2018

Spring Ice/dry floor operation • Extend Arena #2 operating hours through the summer for the 2018

season. 2 $14,000 Requisition 2018

Expand spring hours (aquatics and administration) • Eliminate the reduced spring hours of operation • Provide increased programming and drop-in opportunities • Increase customer service levels • Gradual growth to meet possible expansion

2 $29,200 Requisition 2018 - 2022

Summer hours - expanded afternoon hours (aquatics and administration) • Reduce the summer reduced operating hours • Provide increased programming and drop-in opportunities • Provide customer service levels for registrations or programs hosted

during the day.

2 $10,000 Requisition 2018 - 2022

PerfectMind API integration implementation • Ability to search website for programs and services within the new

registration software. 2 $10,000 Requisition 2018

Strathcona Gardens 2018-2022 Operating Business Cases Summary

• This will also include the additional lifeguard requirement approved at the Nov. 8th Commission meeting - aquatic wage increase to $24,630 for 2018.

• Also the predicted carry forward for professional fees will be $20,000 less based on the resolution at the Nov.8th meeting to seek consultancy to advise on

procurement methods.

Business Case Summary WATERSLIDE REPAIRS

Priority: 1 1 High

5 Low

1. Executive Summary The waterslide at Strathcona Gardens needs repairs to keep it safely operating until the redevelopment of the facility.


This past spring, during their annual inspection, Technical Safety BC flagged several concerns with the waterslide at Strathcona Gardens. Staff at Strathcona Gardens took care of any immediate repairs and engaged Harold Engineering to do a follow-up inspection and report for Technical Safety BC. Since then staff have also engaged Whitewater West, the original manufacturer of the waterslide, to do 20-year inspection on the slide. Items that need to be considered for repair during next year’s shutdown include:

• Cracking and blemishing of waterslide stairs – potential tripping and/or laceration hazard. • Increasing the dimensions of the waterslide exit step and retiling the area around the platform to

increase slip resistance levels. • Rusting structural steel on the waterslide deck platform – outstanding repair from Technical Safety BC’s

inspection – Harold Engineering is drafting a schedule of repairs. • The reapplication of all interior sealant between waterslide sections – noted on Technical Safety BC’s

inspection report. • Deteriorating sealant around exterior wall penetrations of waterslide – noted in Technical Safety BC’s

inspection report. • Failing exterior flashing around waterslide – noted in condition assessment done by Stantec in 2016. • Recoating of the slide exterior to get rid of oxidation – strictly cosmetic.

Most of these repairs are required to keep the slide operational. They focus on our legal obligations as a Technical Safety BC amusement device permit holder and reducing the liability to the facility over the short-term. Recent developments and reports have brought to light the importance of managing the risk associated with operating this piece of equipment.


Remove and replace the existing coating and tiles on waterslide stairs. Replace the waterslide exit ‘stair’ with a widened exit ‘platform’ and retile on and around with at least 0.5 slip resistance rated tile. Complete the schedule of repairs, laid out by Harold Engineering, to the top deck of the waterslide. Remove and reapply all joint sealant on the interior of the waterslide. Repair and replace all rusted and damaged exterior flashing around the waterslide. Recoat the exterior of the waterside to remove oxidation.

4. Business Risks Some of these items carry a risk to staff and the public that operate and use the waterslide every day. Failure to mitigate these risks potentially increases risk and liability. Not carrying out the repairs noted by the Technical Safety BC safety officer risks our amusement device operating permit being pulled and the waterslide being shut down. Decreased public swim revenue based on a possible shutdown of the waterslide.



Capital Costs $ $ $ $ $ $

Operational Costs (5 Years) $33,000 $ $ $ $ $33,000

Total $33,000 $ $ $ $ $33,000

Business Case Summary WATERSLIDE REPAIRS

Priority: 1 1 High

5 Low

b) Benefits

Tangible Benefits Reduced risk and liability Fully compliant and operational waterslide Decreased time for patchwork maintenance repairs. Improved aesthetics on the exterior of the facility

Intangible Benefits Patron satisfaction Positive response from staff, knowing employee and patron safety is high priority


THAT the 2018-2022 Financial Plan be amended to include $33,000 in the 2018 operating budget for repairs to the waterslide at Strathcona Gardens in 2018.

Business Case Summary SPRING ICE

Priority: 1 1 High

5 Low

1. Executive Summary User groups and community members have voiced the need for a spring ice season in Campbell River. Extending the arena season into the spring would fill a service gap in the community and on the north island. It also offers a unique opportunity to transform Strathcona Gardens into a destination ice facility due to our competitive rates. However, due to the high operating costs of arenas, this additional season of ice would come at an additional cost to taxpayers.

2. Business Problem and Opportunity In past years Strathcona Gardens has taken out the ice on Arena #2 in mid-April and the ice out on the Rod Brind’Amour arena at the end of the Storm season. This has left many user groups and community members, from Campbell River and the surrounding area, with no choice but to travel out of town in search of ice time. Based on previous years bookings, a single dry floor – the Rod Brind’Amour arena – would be able to accommodate all dry floor user groups and programming, with only a few minor time changes and the relocation the Home Show. This would allow Arena #2 to stay in operation, not just for the spring season, but year-round.

Ice April 15 - June 2 Ice April 15 - July 15 Dry Floor April 15 - June 2 Weeks in season 7 13 7 Ice Revenue $51,316.79 $95,302.61 N/A Dry Floor Revenue $357.77 $357.77 $14,350.00 Operating Costs $(32,096.96) $(59,608.64) N/A Programming Costs $(28,422.94) $(52,785.45) $(9,050.58) Ice Installation N/A $8,500.00 N/A Lost dry floor revenue $(4,941.65) $(4,941.65) N/A Total $(13,779.99) $(13,162.36) $5,299.42

Currently, dry floor programming is projected to bring in over $5,000 of net revenue in 2018, whereas extending the ice season into the spring would result in a net loss of almost $14,000. Alternatively, offsetting the installation costs of the ice on Arena #2, and keeping the ice in year-round, lowers the net loss and increases programming opportunities.

3. Proposed Project Objectives Extend Arena #2’s operating hours through the summer for the 2018 season on a trial basis.

4. Business Risks This has not been done at Strathcona Gardens before, therefore, the lack of historic programming data and operational costs make it difficult to estimate the overall financial impact. Due to lack of downtime, repairs and projects must be carefully scheduled to minimize impacts on revenue generating bookings.





Total $14,000 $ $ $ $ $14,000

b) Benefits

Tangible Benefits Staff retention – maintenance worker and skate shop staff positions secured from seasonal lay-off Operation of Arena #2 ice-plant would continue offset heating costs in pool through energy recovery loop Increased service levels in the community

Intangible Benefits A well utilized and fully operational facility, open year round The go-to place for summer ice on the island and only facility with summer ice on the north island Community and facility exposure through unique offerings


THAT the 2018-2022 financial plan be amended to include $14,000 in 2018 for the operating costs associated with leaving Arena #2’s ice in to run spring/summer ice programs.

Business Case Summary Strathcona Gardens Expanded

Pool & Weight Room Hours - Spring

Priority: 2 1 High

5 Low

1. Executive Summary The Strathcona Gardens Recreation Complex is a facility that is in full operation from September through early April. The pool and weight room operating hours are reduced by 14 hours per week starting in early April and continuing until the end of June. By increasing the operating hours during the months of April, May and June staff will be able to increase pool programming by offering additional drop-in swimming as well as additional swim lesson options in the spring. Increasing the pool hours also provides the opportunity for to expand the weight room hours as well.


The pool and weight room are open seven days a week (Mon- Fri 6am – 9 pm, Sat/Sun 11 am – 9pm) from early September until early April each year. From early April until the end of June, the pool and weight room are open six days a week (Mon Fri 6 am – 9 pm, Sat 11 am – 4 pm). The pool and weight room drop-in schedule is reduced by four hours on Saturdays and by ten hours on Sundays. As a result of the reduction in operating hours in the pool and weight room, less options are available during the spring for individuals and families in this community to recreate and exercise. As the Recreate project moves forward with the project design and construction, increasing the pool and weight room operating hours throughout year should be considered by the commission. Increasing the operating hours at the reception, pool and weight room during April to June on Saturdays from 5pm– 9pm and Sundays from 11am – 9pm will result in the following:

• Increased recreation and fitness opportunities for individuals and families in the community.

o Additional weight room hours o Additional swim lesson set on Sunday o Additional drop-in swimming options for Saturday evening and Sunday afternoon/evenings o Increased opportunities to offer advanced courses on Weekends (NL, WSI, SFA) o Additional Saturday night theme swims

• Improved customer service for all facility users (Pool patrons, and arena patrons) • Increased opportunity to promote 1, 3, 6 month passes for purchase

3. Proposed Project Objectives • Eliminate the reduced spring operational hours • Provide increased educational opportunities through swim lessons and advanced aquatics on weekends • Provide recreational drop-in swimming options for individuals and families • Provide increased fitness drop-in opportunities for length swimming and weight room • Provide increased customer service levels for inquiries and registrations

4. Business Risks As the community grows, there is increased pressure to provide recreation and fitness services year-round. This will be an expectation with a new aquatic facility. If the commission does not consider increasing hours to the community gradually, operating budgets in the pool and the administration will see large increases with an expanded facility.


Pool & Weight Room Hours - Spring

Priority: 2 1 High

5 Low


Projected RevenueDrop-in/POS Revenue $14,800Program Registrations $1,900

ExpensesAquatic Wages & Benefits $1,680Adminstration Wages& Benefits $44,255

Operating Cost -$29,235.00

An additional analysis of passes scanned showed that on average 42 passes were scanned on Saturday nights. LIFE passholders represented an average of 58% of the total visits on Saturday night. On Sundays, an average of 117 passes were scanned. LIFE passholders represented an average of 35% of the total visits on Sundays. a) Total Costs FY18 FY19 FY20 FY21 FY22 Five Year

Total

Capital Costs $ 0 $ 0 $ 0 $ 0 $ 0 $

Operational Costs (5 Years)

$29,235 $29.820 $30,420 $31,025 $31,650 $152,150

Total $29,235 $29.820 $30,420 $31,025 $31,650 $152,150

b) Benefits Tangible Benefits

New Revenue Opportunities (Drop-in, Programs & Membership)

Intangible Benefits

Increased recreation and fitness opportunities in the spring for individuals, families and LIFE participants Healthier Communities


THAT the 2018-2022 Financial Plan be amended by $152,150 for the expanded operation in April, May and June in the pool and weight room.


Pool & Weight Room Hours - Summer

Priority: 3 1 High

5 Low

1. Executive Summary The Strathcona Gardens Recreation Complex is a facility that is in full operation from September through early April. The pool and weight room operating hours are reduced by 14 hours per week starting in early April and continue until the end of June. During the month of July, the pool and weight room hours are further reduced by an additional 50 hours weekly. By increasing the operating hours during the month of July, staff will be able to increase pool programming by offering additional drop-in swimming options to the community. Increasing the pool hours also provides the opportunity to expand the weight room hours as well.


The pool and weight room are open seven days a week (Mon- Fri 6am – 9 pm, Sat/Sun 11 am – 9pm) from early September until early April each year. From early April until the end of June, the pool and weight room are open six days a week (Mon-Fri 6 am – 9 pm, Sat 11 am – 4 pm). During the month of July, the pool and weight room are open five days a week (Mon-Fri 6am – 1pm, Closed Saturday/Sunday). The pool and weight room drop-in schedule is reduced by eight hours per day Monday through Friday and by ten hours on Saturdays or 50 hours weekly. As a result of the reduction in operating hours in the pool and weight room, less options are available during the summer for individuals and families in this community to recreate and exercise. As the Rec-reate project moves forward with the project design and construction, increasing the pool and weight room operating hours throughout year should be considered by the commission. Increasing the operating hours at the reception, pool and weight room during July from (Mon- Fri 1 – 4 pm) will result in the following:

• Increased recreation and fitness opportunities for individuals and families in the community

o Additional weight room hours o Additional drop-in swimming options during the afternoon for children and families o Increased opportunities to offer advanced courses during the weekdays giving courses such as

National Lifeguard and Bronze Cross courses a realistic training ground when the facility is open. • Improved customer service for all facility users (Pool patrons, and arena patrons)

o A check-in point for parents who come to pick up their children o An opportunity for the receptionist to provide registration opportunities for camps.

• Increased opportunity to promote 1, 3, 6 month passes for purchase • Provide a safe place to recreate for LIFE participants

3. Proposed Project Objectives • Reduce the summer reduced operational hours • Provide recreational drop-in swimming options for individuals and families • Provide increased fitness drop-in opportunities for length swimming and weight room • Provide increased customer service levels for inquiries and registrations

4. Business Risks As the community grows, there is increased pressure to provide recreation and fitness services year-round. This will be an expectation with a new aquatic facility. If the commission does not consider increasing hours to the community gradually, operating budgets in the pool, the facility operations and the administration will see large increases with an expanded facility.


Pool & Weight Room Hours - Summer

Priority: 3 1 High

5 Low


Projected RevenueDrop-in/POS Revenue $3,000

ExpensesAquatic Wages & Benefits $9,580Adminstration Wages& Benefits $1,820Operations Wages & Benefits 1,331

Operating Cost -$9,731.00

a) Total Costs FY18 FY19 FY20 FY21 FY22 Five Year

Total

Capital Costs $ 0 $ 0 $ 0 $ 0 $ 0 $0

Operational Costs (5 Years)

$9,731 $9,925 $10,125 $10,326 $10,533 $50,640

Total $9,731 $9,925 $10,125 $10,326 $10,533 $50,640

b) Benefits Tangible Benefits New Revenue Opportunities (Drop-in & Membership)

Intangible Benefits Increased recreation and fitness opportunities in the spring for individuals, families and LIFE participants Healthier Communities Alternatives to outdoor swimming on extreme heat days or rainy days


THAT the 2018-2022 Financial Plan be amended by $50,640 for the expanded operation in July in the pool and weight room.

Business Case Summary Application Program Interface –

New registration software and WordPress

Priority: 2 1 High

5 Low

1. Executive Summary The Strathcona Gardens website was refreshed in 2017 and the new recreation software configured. It was through the business implementation of both processes that we realized that the framework between the host of the website and the backend of the new registration software (PerfectMind) means that the two platforms cannot sync. Therefore, the end users cannot search the website to find a program or service, likewise, they cannot use a search engine (like Google) to locate the wide variety of programs offered at the complex without launching the PerfectMind software. The syncing of the PerfectMind data to the WordPress database would allow all the content and changes in the recreation software to be reflected on the website.


Currently searching for a program or service will be limited to the new recreation software (PerfectMind). This means that users visiting our website will not be able to search the website for a program or service without launching the online version of the new recreation software. Having a fully accessible website allows opportunities at Strathcona Gardens to be searched through an internet search engine or by using a “search” bar located on the website. In addition, once programs or services can be searched online, they can be shared by others on social media. This may result in additional revenue, that otherwise would have been limited to the users utilizing the online registration platform.


The goal of this project is to make the Strathcona Gardens website fully compatible with the PerfectMind registration software by incorporating an application program interface (API) – tools that make it possible to manage software applications. While invisible to the end user, these API’s are essential for communication between programs (in the case WordPress and PerfectMind).

4. Business Risks If the website stays “as is” with no search ability function included the users than must create a user profile in the online recreation software application to locate programs and other online services. As more and more people turn to find services/programs online, it is the ability to a “search” icon on a website or a search engine that is ideal. The frustration of having to register (or sign up) before viewing a service/program becomes an increasing barrier that users would rather avoid until they know that the product or program is what they want.





Total $10,000 $ $ $ $ $10,000

b) Benefits Tangible Benefits Improved accessibility for search optimization

Intangible Benefits Potential increase in revenue, cost-savings for streamlining progresses


THAT the 2018 financial plan be amended to include $10,000 to support the API integration into the recreation website under professional services, to be funded from the Strathcona Gardens Recreation Complex operating funds (requisition).

Strathcona Gardens 2018-2022 Capital Plan Adjustments 2022 Projects

Project or Program Amount Recommended Funding Source

Arena #2 dehumidifier

$119,000 Capital reserves

Floor machine - arena $5,000 Capital reserves

Fitness and rehabilitation equipment replacement $16,000 Capital reserves

Project or Program

Operational

Costs Recommended Funding Source

• Arena #2 rink board replacement project $300,000 Current year requisition (2022)

Strathcona Gardens 2022 Operating Budget

strathcona gardens workbook budget workshop november 22, … · the workshop is the commission’s...

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