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THE CORPORATION OF THE CITY OF SARNIA
People Serving People
PARKS AND RECREATION DEPARTMENT
OPEN SESSION REPORT
TO:
Mayor Bradley and Members of Sarnia City Council
FROM:
Ian Smith
Director of Parks and Recreation
DATE:
April 23, 2014
SUBJECT:
Arena Management Strategy
Recommendation:
It is recommended:
1.
That Council direct staff to prepare a report analyzing the
feasibility of constructing a two pad arena to partner with
Clearwater Arenas as a four pad complex replacing Sarnia Arena
and Germain Arena by 2020;
2.
That an Asset Management program be established for all arenas
using the report as prepared by Ameresco in 2013 and that the
future asset management program reflect the development of a
twin pad arena complex at Clearwater Arenas.
3.
That Germain Arena is open for the 2014-15 ice season and that
Sarnia Arena open for May 1, 2015 allowing for summer rentals;
4.
That the City finalize negotiations with Lambton College on the
divesture of the RBC#2 by June 30, 2014 to allow the College to
acquire and repurpose the facility to a multi-purpose field house
with the project work to begin on April 1, 2015;
5.
That City staff work with arena user groups and tournament
organizers to transition from six ice surfaces to five in order to
minimize impacts.
6.
That a sponsorship program be developed for consideration by
Council for the Parks and Recreation Department to promote
potential partnerships with Sarnia’s business, industrial and
commercial sectors.
Background:
In 2010, the internal Arena Review recommended a greater review of the
arena operations by 2012. This 2012 review was extended to 2013 to allow
for a fuller review of all arena operations including the RBC to occur.
In 2012, the City engaged Ameresco Canada to conduct an asset/energy
management study of the City’s arenas including the RBC. This report was
recently circulated to Council earlier this year.
In January 2013, an Ice Allocation Policy was developed and adopted to set
the process of the reallocation of ice in the event of arena closures and
repurposing.
In June 2013, BMA Consulting was hired to provide an arena analysis and
information. The recommended Arena Strategy resulting from this review is
Attachment 1 to this report and includes the BMA Analysis based on
assumptions made at that time.
In November 2013, the Arena Management Strategy was presented to
Council. Recommendations from the strategy that were adopted at that
meeting included using the Ice Allocation Policy to determine future ice use
at Sarnia and Clearwater Arenas, implementing modified ice rental rates
over the balance of the 2013/14 season and providing Council with the
Ameresco Asset and Energy Management report. Further, Council directed
staff to gather public input and to host a Public Information Session.
The Public Information Session was held on January 15, 2014 and a
dedicated e-mail address was set up specifically for comments on the
proposed arena management strategy. Forty-five comments were received
through the e-mail address and 12 presentations were made at the public
meeting. A report to Council summarizing the public input received at that
session and through the dedicated e-mail address was provided at the
February 3, 2014 meeting. Generally, the public input received did not favor
the closure of any arenas. The report summarizes the input, indicating that
the closure of two arenas is seen as highly problematic to the main user
groups and that the closure of one arena would impact on the hosting of
tournaments and would require arena users to modify their arena use.
Further input regarding the effect of arena closure on hockey tournaments
was provided by the Chamber of Commerce in their recent presentation and
submission to Council.
Further input was organized through a focus group session with arena user
groups held on Wednesday, February 26, 2014 facilitated by Mr. Don Cook.
The Director of Parks & Recreation provided an overview of scheduling
options drafted to reflect different combinations of arena closures and also
responded to questions and concerns expressed by the user groups in
attendance. The facilitator recorded the comments of participants and
coordinated the exercise of gathering feedback to the draft schedules and
questions relating to the effects on usership of different arena closure
options. The facilitator’s report forms Attachment 2 to this report.
Attachment 3 provides the draft schedules that the user groups responded
to and demonstrates the effects on users of closing one or two arenas.
At the March 24th, 2014 meeting of Council, staff reported out on the effects
of the modified ice rental rates put into effect for the 2013/14 season.
Further recommendations were made to carry forward modified ice rental
rates to 2016, when they would be reviewed again during the budget
process. Council adopted the report recommendation.
At the meeting of April 14, 2014, Council received a presentation from
representatives of Lambton College regarding the acquisition and repurposing of the RBC#2, should the City decide to divest it as part of the
arena management strategy. This presentation summarized ongoing
discussions between the City and the College regarding RBC2.
At a recent Council meeting, the City of Sarnia assumed responsibility for
the RBC operation and debt by summer, 2014. This will have an impact on
the overall arena operations and needs to be considered in the Arena
Management Strategy. The RBC’s impact and potential cost mitigations
steps are part of this report. Outside of this report, staff will continue to
develop strategies pertaining to RBC operations that are complementary to
the operations of the City’s other arena assets for Council’s consideration.
Comments:
The Arena Management Plan needs to address the future, not the past. The
arenas are an important part of the community’s recreational program and
contribute to the economic well-being of the community. However, the
City’s arenas are aging with no curb appeal or modern amenities to support
today’s modern hockey and figure skating programs. The entrances, lobbies
and concessions of all arenas are poorly designed and tired.
Present Situation of the Sarnia Arena, Germain Arena and
Clearwater Arenas:
Sarnia Arena is 65 years old in 2014. It is among a group of 10 arenas in
Ontario that are still active with this many years of service. As a facility, it
has served the City well and for a very long time. However, the age and
design of the arena create difficulties to install new technologies making this
arena an energy and operational challenge.
Germain Arena has also not aged well and, with the sand floor, its use is
restricted to only ice events. The smaller than average-sized ice surface is a
challenge for user groups. This is the least utilized arena in the City.
Clearwater Arena has two rinks of different age (built in 1975 and 1978) but
the ice areas of both facilities are good. There are weaknesses in the arena
lobby, concessions, meeting rooms both upstairs and down and the area
dedicated to the Hall of Fame.
A Facility Condition Index (FCI) is used to determine the condition of a
building. The FCI looks at all building components from roofs to HVAC
systems to building envelopes as well as all electronic units and mechanical
systems within a building. The formula is:
FCI= Total of Building Repair/Upgrade/Renewal Needs
Divided by
Current Replacement Value of Building Components
FCI Condition Scale
The relative measure of the condition of a facility (or facilities) is usually
organized into a four-tiered condition scale, as follows:
•
•
•
•
Good Condition
- 0-5% of Capital Renewal (CRN)
Fair Condition
- 5-10% of CRN
Poor Condition
- 10-30% of CRN
Critical Condition
- 30%+ of CRN
The cumulative Facility Condition Index (FCI) for Sarnia, Germain and
Clearwater Arenas are:
by 2014 - 12% - poor
by 2019 – 22% - poor
by 2024 - 30% - critical
The present FCI rating of the individual arenas are:
Sarnia ArenaFair
Germain ArenaPoor
Clearwater Arenas-
Good
Arena Use:
As previously presented to Council in November 2013, the four arenas are
not fully used during prime time hours by the community. As indicated in the
BMA analysis, 66% of prime time hours are used in these arenas.
Germain Arena is the lowest used arena in the City. It is closed 75% of the
time in full winter operation. Due to its sand floor, it is closed 100% of the
time in the off-season. Presently, the ice rentals during the winter season
are 40 hours per week and within a 168-hour week – this means the facility
is open less than 25% of the time. In the 2013-2014 season, the facility
was closed on both Saturday and Sunday nights. As indicated in the BMA
analysis, 54% of prime time hours are booked in this arena.
Sarnia Arena operates a full program but is not open from the end of the ice
season until September. There is the potential for a two-day rental this year
for a MMA event and this will be only non-ice rental in past number of years.
Winter ice usage is approximately 68% of prime time availability.
Clearwater Arenas have the highest use of all City managed arenas facilities.
The use in Rink#1 – 69% and Rink#2 - 74%. Clearwater Arenas are home
to a summer program of lacrosse.
Present Situation of the RBC:
Since it was built in 1998, the RBC has been managed by a third party with
no cost to the City. The facility is in good condition with a number of
components coming to the end of the standard 15 year lifecycle. This means
in the next few years that a number of re-investments have to be made in
this building. The FCI rating of this building is good.
RBC Operations:
In reports to Council earlier this year, it was indicated that two alternatives
were being explored relative to the operations of the RBC, given that the
current operators are no longer assuming this responsibility. These options
included the City operating the facility or contracting a new operating
arrangement with owners of the Sarnia Sting Hockey Team. Under either of
these arrangements, the City would assume responsibility for the mortgage
and facility debt of the RBC. New ownership of the team has not materialized
to date. For the purposes of the Arena Management Strategy, the scenario
of City management of the RBC facility has been determined with the City
operating the facility. The City will be negotiating a new agreement with the
Sarnia Sting ownership for long-term tenancy of the team and also work on
a transition plan for the operation of the facility from the Sarnia Sports
Centre Inc. to the City. These arrangements, including financial implications,
will be the subject of further reports to Council.
Proposal for RBC#2:
At the April meeting of Council, representatives of Lambton College
presented a concept plan for RBC#2, if it became available for divestiture
from the City. The College detailed plans to re-purpose the facility to a yearround multi-purpose field house for College and community use. Lambton
College requires a multi-purpose field house to assist in meeting its goals of
improving academic, intramural and intercollegiate experiences. The RBC#2
is located on College property and is ideally located for such a facility.
Moreover, there are significant cost savings for the College to convert
RBC#2 relative to building a new facility.
Lambton College is a major economic engine in the City with nearly 3,500
students (full time) and nearly 1,200 faculty, staff and administration
(including PT instructors). These numbers were provided by Lambton
College. The economic spin-off associated with Lambton College students,
staff and operations is important to the City’s prosperity. Benefits to the
City and Lambton College from a repurposed RBC#2 include:
 Attracting additional students to Lambton College in a competitive
student market thereby assisting the College to reach its target
student population of 4,000 (full time);
 Improving academic programming in a number of programs
especially in programs that can be of direct benefit to the City’s
administration, i.e., fire fighter training, police foundations,
recreation programming, etc.;
 Enhancing student life during the academic year;
 Adding economic stimulus to the Sarnia economy by attracting new
sports tournaments year-round, with additional streams of revenue
for local community businesses. These tournaments will include
volleyball, basketball, badminton and other sports events;
 Adding economic stimulus to the Sarnia economy created by
operational expenses of its buildings, capital purchases,
construction projects, and new facility staff spending in local
economies;
 Decreasing the City’s debt and operating costs for RBC2 in the
order of $143,250 per annum, as well as associated capital asset
management costs over the years;
 Increasing prime time ice usage among the City’s remaining ice
pads to an average of 83%;
 Diversifying the indoor athletic facilities available to the community,
year-round, for multiple sport opportunities and at no cost to the
City;


Ensuring that all six arena facilities remain functional as athletic
facilities available to the community;
Saving the College significant construction costs through the repurposing of an existing facility relative to new construction.
Spin-off Benefits of Arenas:
As indicated by the arena user groups and the recent presentation/
submission by the Sarnia-Lambton Chamber of Commerce, a primary
economic spin-off of arena infrastructure is the ability to host tournaments.
While much of the analysis for the Arena Management Strategy is framed
within the context of the City’s operating and capital costs, there is no
question that tournaments provide economic benefit to the local economy.
Therefore, in the arena management recommendations to Council, due
consideration for sports-related tournaments is given with the objective of
maintaining or enhancing the City’s capacity for tournament activity over
time.
Where are we heading:
In general, over the past 15 years, community use of the arenas has
declined at a rate of 1.4%/ year or 4 hours of use/ week. At present ice
rental rates, these 4 hours of lost use are each valued at $5,000 in annual
arena revenues. This $20,000 loss per season has compounded over 15
years, now creates an additional loss of $300,000 per year when compared
to 2013 budget levels. This loss in ice use and associated revenue loss
impacts the arenas in a number of ways:
• Results in higher ice rental rates, which negatively impacted on the
potential volume of ice rentals/ ice rental revenues and attraction of
additional ice rentals. In 2013, the cost for arena operations for the
City (taxpayers) was the highest of any year with use at its lowest
level;
• Increases the rate of City subsidization for arena operations by at least
$20,000 per year with a 2013 culminated $300,000 additional cost/
year;
• Less funds for capital re-investment programs leads to deteriorating
arena building envelopes and poor curb appeal;
• Reactive maintenance is undertaken which has more cost than planned
preventative maintenance programs.
Under the scenario of a continuation of current trends and present arena
operations, the following is anticipated:
 1.4% loss of arena rentals, annually
 1.5-2.0% increase in annual operating costs, annually
aging assets would continue to deteriorate as limited funds are
available for capital improvements resulting in an FCI rating of 30% by
2024 (critical stage);
 Eventually this will impact on attracting and hosting tournaments;
 Increases in deferred maintenance costs that will compound annually.
This does not ensure a good future for these important community assets.

Where does the City want to be: Long-term Vision
The City wants arenas that have strong community use, a lower FCI, are
affordable and contribute to the community’s economy. The City needs to
upgrade its arena operations and invest in these community assets and
economic contributors to the community. As a result, it is recommended to
eventually close the arenas that require the greatest re-investment of
monies and resources. The closing of Germain and Sarnia Arenas by 2020 is
predicated on the outcome of a report analyzing the feasibility to construct a
two pad arena to partner with Clearwater Arena as a four pad complex.
Generally, the scale of economy shows a four-pad is the most cost effective
operation with numerous Ontario communities building four-pad arenas over
the past few years. Economies of scale can be realized in terms of staffing
levels and operations, including a reduction in the number of ice plants and
re-surfacers needed, as well as building cost efficiencies with cleaning and
maintenance. In addition, a four-pad arena on one site would be a great
asset to hosting tournaments and special events. Presently, the City
provides five full size arenas to tournament organizers such as Silver Stick.
With a newly created four-pad arena along with the remaining rink at the
RBC – five full-sized arenas would be available for Silver Stick and other
tournaments/ special events to use.
The report would also review the demographics of the community to ensure
that future usage of 5 ice surfaces can be sustained and take into
consideration operational and capital impacts of the RBC facility.
In the period leading up to 2020, tournament organizers will be required to
review their programs and modify them to reflect the removal of a full-sized
arena. This may mean changes such as expanding the tournament to four
days instead of three or making other short-term changes. Over the next
few years, City staff will work with tournament organizers to mitigate the
short-term impact of this strategy.
If this direction is approved, City staff will develop a plan and present to
Council the budget, financing and project timing of a twin pad arena
partnering with Clearwater Arenas, to be in use by September 2020. It is
proposed to add two arenas to the Clearwater site – full sized and twinned to
take advantage of common elements – ice plants, entrances, lobby, halls,
concession and staffing as well as capital and operational maintenance.
Also for the long-term, there is a need to create an asset management
program to revitalize the arenas, including the RBC, and provide upgraded
facilities for user groups. The retention of all arenas in the short term means
that a graduated upgrading program needs to be implemented, with a focus
on Clearwater Arena and the RBC and minimal capital improvements for
Sarnia and Germain Arenas. In this way, capital funds will be dedicated to
the facilities with long-term utility as well as development of a new facility
(pending the outcome of the analysis indicated above).
Recently Ameresco Canada Inc. conducted an asset and energy
management study of City arenas including the RBC. Ameresco Canada
proposed the closing of Germain Arena. This was based on the poor FCI
rating and the amount of funds needed to update/ update this facility. With
this long term strategy, any investment in Germain Arena would be limited.
An arena 10 year capital plan, including the RBC will be prepared in 2014.
This 10 year capital plan will recommend funding levels for all arenas. The
goal of the asset management program will be to ensure that the Germain
and Sarnia Arenas remain operational until the end of the 2019-2020 season
with RBC and Clearwater Arenas remaining viable for the long term.
A sponsorship program will be developed by the Parks and Recreation
Department. The proposal to engage in sponsorship or naming rights is not
to be philanthropic but based on business perspective. The City has facilities,
parks, special events and activities, which can be used to market the
business community products and programs. Successful sponsorship
programs must create mutually beneficial relationships with sponsors while
maintaining community values.
Recommendations for Long-term Arena Management:
 That Council direct staff to prepare a report analyzing the
feasibility of constructing a two pad arena to partner with
Clearwater Arena as a four pad complex replacing Sarnia Arena
and Germain Arena by 2020.
 That an Asset Management program be established for all arenas
using the report as prepared by Ameresco in 2013 and that the
future asset management program reflect the development of a
twin pad arena complex at Clearwater Arena.
Arena Management in Next 5 Years:
In order to reduce operating and capital costs while still accommodating
major user groups and tournaments and work toward the goal of renewing
the arena infrastructure by the 2020 ice season, it is proposed that the
following measures be taken:
 That Germain Arena is open for the 2014-15 ice season
and that Sarnia Arena is open for May 1, 2015 allowing for
summer rentals;
Germain Arena is small scale ice arena that is not conducive to older
minor hockey teams or large scale figure skating competitions. In the
immediate short term, this facility would be the location for young
minor hockey players and figure skaters. It has a sand-base floor that
eliminates any summer use for the past number of years and as such
it is only used for 7 months of the year.
The recommendations above are predicated on the following
recommendation to divest RBC#2 to the College for re-purposing to a
multi-purpose field house. The recommendation is to have Germain
Arena remain open during the upcoming season. There are challenges
in this recommendation, which are noted below. Considerations
associated with this decision are:
• If Germain Arena remains open, the 2014 budget will be
impacted by $76,000 in additional operational costs for the
season;
• Germain Arena is the lowest cost operation of all City arenas;
• Germain Arena’s biggest challenge is the financial
requirements to reduce the FCI and invest capital funding to
upgrade the building. In the short term, capital funding will
not be required for the next five years;
• Closure of Germain Arena for 2014-2015 would disrupt all
arena ice schedules, which would then in 2015-2016 again
require reconfiguration as the RBC#2 closes;
• By leaving Germain open during the 2014-2015 season
provides a season to transition user groups and tournament
organizers to 5 ice surfaces in the City;
• The draft schedules (Attachment 3) indicate that the current
user groups can be accommodated with one less ice surface,
but not two;
• Once the RBC2 ice pad is closed, in 2015-2016, Germain
Arena could be rescheduled to be a figure skating and youth
minor hockey facility allowing the Triple “A” Hockey program
to remain at the RBC#1;
•
In 2015 and beyond, Sarnia Arena will also provide summer
ice in addition to its regular program in the winter.
 That the City finalize negotiations with Lambton College on
the divesture of the RBC entertainment centre ice pad #2
by June 30, 2014 to allow the College to acquire and
repurpose the facility to a multi-purpose field house with
the project to begin on April 1, 2015.
The City pays the debt charges and asset management program costs
for the RBC. The annual debt costs, including the RBC guaranteed
loan, are estimated at $710,000/ year. The RBC#2 operating costs are
$143,250/ year of this total. These costs as would come off the City’s
books upon the sale of the facility to the College. Moreover, the City
would not accrue any future capital improvement costs for the RBC2.
Finally, as demonstrated in the draft Schedules (Attachment 3), the
closure of one arena can be accommodated in the remaining ice
surfaces in the City.
 That staff be directed to work with arena user groups and
tournament organizers to transition from six ice surfaces
to five in order to minimize impacts.
In recognition that reducing the ice surfaces available to the
community is not viewed favourably by user groups and has the
potential to affect tournament activity in the City, it is recommended
that the Parks & Recreation Department work with user groups and the
community to assist with the transition. Focus group participants made
constructive comments regarding scheduling changes, ice rates and
the need for summer ice that will be helpful to transition planning.
 That
a
sponsorship
program
be
developed
for
consideration by Council for the Parks and Recreation
Department to promote potential partnerships with
Sarnia’s business, industrial and commercial sector.
A sponsorship program will engage the business community and will
not be philanthropic, but rather based on a business perspective. The
City has facilities, parks, special events and activities, which can be
used to promote business community products and programs. A
successful sponsorship program will create mutually beneficial
relationships with sponsors while maintaining community values and
increasing City revenues. This recommendation responds to ideas put
forward by both Parks & Recreation staff as well as arena user groups.
Consultation:
Consultation on the arena management strategy was with the staff of the
Parks & Recreation Department, arena user groups, the Director of Finance,
the City Solicitor/Clerk and the City Manager.
Financial Implications:
In the 2013 budget, the tax levy for the arena budget was $477,131 which
includes Arena Administration and the Minor Ice Subsidy. This budget level
did not reflect the actual financial results of the city arenas. As a result, the
anticipated 2013 year end results are a loss of $770,877, which is a
$293,746 deficit against the 2013 budget.
The draft 2014 budget adjusts revenue to reflect the true revenue potential
of the arenas. The closure of Germain arena after the 2013-2014 ice season
and the allocation of the fall Germain Arena revenues to Sarnia and
Clearwater Arena will require $631,565 in tax levy funding which is included
in the 2014 budget. By keeping Germain Arena open for the 2014-2015 ice
season, additional unbudgeted costs of $76,000 will be incurred during
2014. The 2015 budget will need to reflect complete 12 month operational
costs.
Today, the potential for generating additional ice rentals within our rate
structure is limited. The offering of modified hourly ice rental rates will
generate revenues but they are difficult to quantify for budget purposes. It is
anticipated that the modified rates will not negatively affect present arena
rental revenues. As well, it is expected that these modified rates and any
bookings generated will not raise operational costs such as additional
overtime costs.
An Asset Management program will be established for all arenas including
the RBC using the report as prepared by Ameresco and that this asset
management will be used as the basis for a process to develop a four pad
arena complex in the City replacing City operated arenas excluding the RBC.
The aging facilities need to be replaced and provide the community with
modern energy efficient facilities. A four pad facility will provide scale of
economy and allow for future repurposing of an arena to a field house should
that need arise. If this direction is approved by Council, staff will undertake
a detailed financial analysis on the building and operation of a four pad
arena complex at the site of Clearwater Arena. The analysis will compare
the anticipated cost of building an additional two pad onto Clearwater Arena
with the necessary capital costs of maintaining Sarnia and Germain Arenas
based on the Ameresco report. Operational costs (savings) will be included
in the analysis which will compare costs to operate 3 separate arenas
(current situation) with the operational model of a four pad complex. The
analysis will also include operational and capital impacts of the RBC facility.
Prepared by:
Approved by
Ian J. Smith
Margaret Misek-Evans
City Manager
Attachment(s):
1)
2)
3)
4)
Nov 28th Report and BMA analysis
Mr. Cook’s Report on the Focus Session – Arena Users
Demo Schedule for Germain Arena (only) closing
Demo Schedule for RBC#2 (only) closing
Attachment # 1
THE CORPORATION OF THE CITY OF SARNIA
People Serving People
PARKS AND RECREATION DEPARTMENT
OPEN SESSION REPORT
TO:
Mayor Bradley and Members of Sarnia City Council
FROM:
Ian Smith, Director of Parks and Recreation and
Brian McKay, Director of Finance
DATE:
November 22, 2013
SUBJECT:
Arena Strategy
Recommendation:
It is recommended that Sarnia City Council adopt the following
recommendations from the attached Arena Strategy:
1.
That the City of Sarnia continues to provide arena services in
Sarnia and Clearwater Arenas using the 2013 Ice Allocation
policy to determine the future ice use in these facilities;
2.
That based on a long term trend of decreasing arena usage that
Germain arena be closed as an ice facility at the end of the
2013/14 ice season;
3.
That public meetings in Quarter 1 of 2014, be held with present
ice users of Germain Arena to facilitate the relocation of their
activities to the other City arenas;
4.
That Germain Arena be repurposed into an artificial turf
fieldhouse suitable for field sports including soccer in 2014;
5.
That the management and operation of Germain Arena as an
indoor turf facility be provided as part of the Parks and
Recreation Department.
6.
That the City of Sarnia assume responsibility of the RBC facility
management under the Department of Parks and Recreation.
7.
That the City of Sarnia divest or close RBC #2 in spring of 2015.
8.
That for the balance of the 2013/14 season in all City managed
arenas that additional levels of ice rental rates be established to
increase usage during this season. These include:
A) That any minor group (recognized by a provincial or
national association) can rent available ice time at the
rate paid by City of Sarnia minor groups;
B) That daytime ice of $60.00 be available to groups
between 9:00 a.m. and 3:30 p.m. Mondays to Fridays
at Clearwater Arena;
C) That unreserved ice time after 10:00 p.m. on any
weeknight shall be available at 75% of the regular
rental rate;
D) That between December 21 and January 6, 2014 all
unreserved ice shall be available at $100.000 per hour
regardless of time of availability.
9.
To provide Council with Ameresco Asset and Energy
Management reports in January, 2014 to provide a base for an
arena revitalization program.
Background:
In 2010, the internal Arena Review recommended a greater review of the
arena operations by 2012. This 2012 review was extended to 2013 to allow
for a fuller review of all arena operations including the RBC to occur. In
June, 2013, BMA Consulting was hired to provide arena analysis and
information. The recommended Arena Strategy resulting from this review is
attachment 1 to this report. It is supported by the BMA Analysis found in
attachment 2.
For information, in 2012, the City engaged Ameresco Canada to conduct an
asset/ energy management study of the City’s arenas including the RBC.
Further, in January, 2013, an Ice Allocation Policy was developed that will
set the process of the reallocation of ice in the event of arena closures and
repurposing.
Comments:
The recommendation is to maintain arena operations for RBC, Sarnia and
Clearwater Arenas as ice operations in 2014/2015 season. At present, the
arenas in the City do not operate at capacity. The repurposing of Germain
Arena and divesting or closure of RBC Rink #2 over the next two years will
allow for the majority of ice use to be relocated to other City arenas.
It is recommended to close Germain Arena at the end of the current ice
season. This facility does not operate in the summer and is the last arena to
operate at the start of each ice season. At present Germain Arena provides
38 hours of prime time rentals, which can be accommodated within the
remaining three city operated arenas with prime time availability.
The potential to divest or close RBC Rink#2 is a viable option. This facility
operates at less than 66% capacity. The divesting or closing of RBC#2 would
occur in the spring of 2015. The impact on users is such that less than only
10 hours of ice usage a week are not available to meet the requirements of
closing the second arena. Staff will work with Lambton College on the
divesting of the RBC#2 as the College is property owner.
Parks and Recreation Department will meet with all user groups to assist in
the reallocation of ice time to other City arenas. This will occur as soon as
possible to allow groups to plan their upcoming season. The ice allocation
policy will provide the parameters of ice usage in the four remaining arenas.
For the balance of the 2013/14 ice season it is recommended that the City
provide more flexible non-prime time ice rates in an effort to attract use and
revenues to the arena operations. The parameters of the additional use will
not create any additional costs such as overtime.
There is a need to create an asset management program to revitalize the
arenas and provide quality facilities for user groups. Recently Ameresco
Canada Inc. conducted an asset and energy management study of City
arenas including the RBC. Staff will prepare a report for Council’s
consideration and direction to provide an arena revitalization program. This
will be presented in the first quarter of 2014.
Financial Analysis:
In the 2013 budget, the tax levy for the arena budget was $477,131. This
budget level did not reflect the actual revenue generating ability of the city
arenas. As a result, the anticipated 2013 year end results are a loss of
$732,773 which is a $255,642 deficit against the 2013 deficit.
The draft 2014 budget adjusts revenue to reflect the true revenue potential
of the arenas. The closure of Germain arena after the 2013-2014 ice season
and the allocation of the fall Germain Arena revenues to Sarnia and
Clearwater Arena will require $634,873 in tax levy funding which is included
in the draft 2014 budget. The financial impacts of converting Germain Arena
to an indoor turf facility are not reflected in the 2014 draft budget.
In the attached BMA analysis, the baseline option would see the City
continue to operate Germain, Sarnia and Clearwater arenas and also
manage the RBC. The analysis shows that all arenas operate at a net deficit
and require funding from the tax levy to subsidize their operations. The
funding amounts are within line of arena financial results throughout the
province. The cost of this baseline option would be a tax levy of $1,212,000.
The 2014 draft budget currently contains a tax levy impact for the arenas of
$634,773. The baseline options would add a further $577,227 to the levy;
this would result in a 0.99% tax increase.
The recommended strategy is to convert Germain Arena to an indoor turf
facility during 2014 and to divest or close RBC Rink#2 in 2015. Assuming
that at least 60% of the booked ice time in these two facilities can be
allocated to other arenas, the tax levy for this option would be $1,107,000.
This impact would increase the 2014 tax levy by $472,227, which is a 0.81%
tax increase. The 2015 budget would drop back down to $893,000 and 2016
budget would drop to $831,000 as the impacts of the closing of Germain and
RBC Rink#2 are annualized.
A recent BMA study reviews per capita spending on indoor recreational
facilities. Relative to 24 comparable municipalities, the City of Sarnia’s per
capita amount was the lowest at $18.00. While the per capita figure will be
impacted by the recommended arena management strategy, it will still be
among the lowest.
Today, the potential for generating additional ice rentals within the City’s
rate structure is limited. Offering modified hourly ice rental rates will
generate revenues above what is projected in the draft 2014 budget, but
they are difficult to quantify. It is anticipated that the modified rates will not
negatively affect present arena rental revenues. As well, the implementation
of modified rates and any bookings generated will not raise operational
costs.
Consultation:
Consultation on this report was with City Manager, City Solicitor/ Clerk,
Director of Finance, Assistant City Solicitor, with financial analysis provided
by BMA Consulting.
Prepared by:
Prepared by:
Ian Smith
Brian McKay, CPA, CA
Director of Finance
Approved by:
Margaret Misek-Evans
City Manager
Attachment(s):
Arena Strategy
BMA Consulting Analysis
CITY OF SARNIA
ARENA STRATEGY
(A) Situation:
• Older population in Lambton County and Sarnia in particular –
average age is 42.5 while average age of an Ontario resident is
37.5 years old
• Between 2006 and 2013 there has been a decline in Sarnia of
number of children and teens (0-19) by 5%
• The following chart was provided by the St. Clair Catholic District
School Board with a number of children and young adults in Sarnia
– Lambton 1996-2011. The Public Board numbers mirror and these
numbers demonstrate a loss of youth in the community and area.
Ages/
Years
Birth
1996
2001
2006
2011
% change
1996-2011
1,327
1,135
1,162
1,232
-7.2%
1-4
6,168
4,807
4,613
5,086
years
5-8
7,180
5,895
4,942
5,315
9-12
7,329
7,043
5,778
4,985
13-16 7,146
7,230
6,848
5,543
17
1,705
1,804
1,814
1,511
years
Totals 30,855 27,914 25,157 23,672
-17.6%
-26.0%
-32.0%
-22.5%
-11.4%
-23.3%
Sarnia arenas are aging. The oldest built in the late 1940’s with the
newest 15 years old – the RBC:
Arena
Age
Sarnia Arena
1948
Clearwater
Arenas (2)
Germain
Arena
RBC (2 rinks)
1975 & 1978
Capital Upgrades –
10 years
New boards and
glass
New seats
Safety netting
New clock
Safety netting
1974
none
1998
HVAC system
Prime
Usage
68%
Time
#1- 74%
#2- 69%
54%
RBC#1 – 82%
RBC#2 – 66%
Ice
•
•
Minimal capital spending in arenas over the past 10 years show
their age and lack of investment
Sarnia’s net cost of spending on Indoor Recreational facilities
(arenas) per Capita is the lowest of 24 comparable communities
surveyed by BMA Consulting at $18.00 per capita. Next lowest
amount spent is Peterborough at $27.00 per capita while
Newmarket is the highest at $120.00 per capita.
Sarnia Girls Hockey Assoc.
17.5
1.5
Sarnia Figure Skating Club
9
6.5
1.5
1
2.5
127.75
_____
_
30
16
_____
_
2
143.75
_____
_
32
0
4.5
Junior B Hockey
6.5
Public Use
6.5
Total Ice Time used by
Subsidized Groups
____________________________
___
Adult/Misc. Use
High School Hockey
Total Ice Time used by Other
Groups
•
•
•
•
43
106.75
NQ Prime
7
Prime Time
99.75
Sarnia Sledge Hockey
1998/99 Ice Season
Total
Prime
and NQ
Prime
ice
time
used
NQ Prime
Sarnia Hockey Assoc.
2013/14 Ice Season
Prime Time
• SEASONAL
WINTER ICE
ALLOCATION ALL ARENAS
Total Prime
and NQ
Prime ice
time used
138
15.5
153.5
19
19
1.5
20.5
15.5
21.5
7.5
29
178.5
_____
_
26
24.5
___
_
8.5
203
_________
_
34.5
4.5
0
13
13
0.5
7
7
0
7
0
6.5
5
0
5
38
21.5
59.5
7
50
_____
_
Total Ice Time Used
170.75
23
193.75
216.5
70.5
262.5
Total hours available
220
71.5
291.5
220
71.5
291.5
Total Vacant Ice Time
49.25
48.5
97.75
3.5
1
29
Minor Hockey is now played by 9% of Canadian children and Youth
while in 1993 – 20 % of Canadian children and youth played
hockey
Arena decline is occurring elsewhere – Hamilton experienced
decline in arena ice usage of 7.4% since 2008 loss of 2,826 hours
of use
Chatham – Kent has three arenas of 10 arenas operating at less
than 70% prime time capacity with a low of 63% use in Bothwell.
Ontario Recreation Facilities Association guidelines are one arena
for 20,000 population – Sarnia has 6 arenas – 73,000 population
•
•
Toronto Star states in January 2012 article on minor hockey that
“Enrolment in Hockey Canada teams is currently 572,000 players
(both males and females), down more than 200,000 from its peak
and the prospects are grim. In the next decade, some say there
could be 200,000 fewer kids playing the game.”
An October 2012, Globe and Mail newspaper article about the
challenges facing hockey supplier Bauer states “Overall in Canada,
the number of male players playing hockey between the tyke and
midget age groups appears to have peaked at slightly more than
440,000 in 2009-10. Since then, registrations have fallen two years
in a row, dipping to 427,000 in 2011-12.”
(B) Future Arena Operations
• Preferred option as per the BMA Consulting analysis is to Repurpose
Germain Arena (City operated) and to divest and close RBC#2 in
April, 2015.
•
•
•
•
•
•
•
•
•
Germain Arena
Recommend closure of Germain Arena as an ice arena with the City
Parks and Recreation Department operating a repurposed facility
starting in October, 2014
$125,000 from Sarnia Football Club agreement to cover the cost of
installing artificial indoor turf – estimate to cost $125,000 to install
including granular base and firm underlay for artificial turf
Community books artificial turf from same central location as arenas
are booked
Sarnia FC has agreed to take 30 of the potential 68 hours of prime
time floor time available. Girls’ soccer and a host of other sports
would consider the facility for use over the winter.
Seven month City operation (October – April) with facility available
to lease to a summer program provider at a monthly rent
Germain Arena present ice use reallocate to other arenas using
available prime time ice time in Sarnia and Clearwater Arenas
Meetings will be set up with present Germain Arena ice users to
accommodate them in other City arenas.
No change in management structure
Estimated cost to operate - $7,000 annual deficit to be offset with
potential revenues from concessions operations and summer lease
opportunities
•
•
•
•
RBC Arena
As previously noted, Sarnia has nearly twice as many arenas as is
recommended by the Ontario Recreation Facilities Association
guidelines of one arena per 20,000 population
To rationalize this situation and increase the viability of arena
operations in the City, it is recommended that the City assume
responsibility for the RBC facility management under the
Department of Parks and Recreation.
Divest or close RBC Rink#2 in Spring 2015
Ice user groups would be accommodated as best as possible.
Estimated that 10 hours per week could not be met based on
current ice usage levels.
Recommendations:
It is recommended:
1.
2.
3.
4.
5.
6.
7.
(C)
That the City of Sarnia continues to provide arena services in
Sarnia and Clearwater Arenas using the 2013 Ice Allocation
policy to determine the future ice use in these facilities;
That based on a long term trend of decreasing arena usage
that Germain arena be closed as an ice facility at the end of
the 2013/14 ice season;
That public meetings in Quarter 1 of 2014, be held with
present ice users of Germain Arena to facilitate the relocation
of their activities to the other City arenas;
That Germain Arena be repurposed into an artificial turf
fieldhouse suitable for field sports including soccer in 2014;
That the management and operation of Germain Arena as an
indoor turf facility be provided as part of the Parks and
Recreation Department.
That the City of Sarnia assume responsibility of the RBC
facility management under the Department of Parks and
Recreation.
That the City of Sarnia divest or close RBC #2 in spring of
2015.
Short Term Marketing Project
Pilot Project – attract user groups for balance of 2013-2014 ice season
•
Sarnia Ice Rates are highest in Lambton County and over 33%
higher for prime time ice than Point Edward.
Community
Sarnia
Point Edward
Mooretown
•
•
•
•
•
•
•
•
Prime Rate
$232.00
$160.00
$150.00
Minor Rate
$187.00
$95.00
$95.00
In the above chart, generally non-prime time rates are the same as
Minor rates
Prime Time
All prime time in arenas will be used with the elimination of ice
surfaces at Germain Arena and RBC#2
Over the next seasons, extend the prime time hours of arena use
to meet the demand by extending earlier in the day and later into
the evening as proposed in the DMA analysis.
Non-Prime Time
Need to market non-prime time hours to increase revenues and
usage of arenas by creating additional revenue sources without
increasing operational costs
Introduce marketing measures using modified rental rates to
attract additional use in City arenas
Specific target groups such as minor sport groups, day time use of
Clearwater Arena and special rates for late night and Christmas
period are proposed for the 2013-2014 season as a pilot project
Pilot project success will be dependent on revenue generation and
opportunities to provide program in future seasons, results of the
pilot project will be reported back to Council in spring, 2014
Promotion shall be by communicating and working with existing
arena users and on the City’s website
Recommendations:
It is recommended:
1. That for the balance of the 2013/14 season in all City managed
arenas that additional levels of ice rental rates be established to
increase usage during this season. These include:
A) That any minor group (recognized by a provincial or
national association) can rent available ice time at
the rate paid by City of Sarnia minor groups;
B) That daytime ice of $60.00 be available to groups
between 9:00 a.m. and 3:30 p.m. Mondays to
Fridays at Clearwater Arena;
C) That unreserved ice time after 10:00 p.m. on any
weeknight shall be available at 75% of the regular
rental rate;
D) That between December 21 and January 6, 2014 all
unreserved ice shall be available at $100.000 per
hour regardless of time of availability.
(D) Asset Management
• Driven by the need to invest and revitalize arenas
• Ameresco provided asset and energy management study in 2013
• Study show the deferred and unfunded liability in the City arenas
including the RBC is $3.4 million dollars
• Estimated the deferred liability by 2023 will be $9.2 million
• Present age of arenas:
Arena
Sarnia Arena
Clearwater
Arenas (2)
Germain
Arena
RBC (2 rinks)
•
•
Built
1948
1975 & 1978
Age
65 years
38 years
1974
39 years
1998
15 years
Ameresco Energy Study shows $177,000 in potential reduced
energy utility costs after capital revitalization investments
Energy savings are required to meet Ministry of Energy guidelines
for reducing energy consumption by 2% per annum, which is a
target that all Ontario municipalities must follow beginning in 2014
Recommendations:
It is recommended:
1. To provide Council with Ameresco Asset and Energy Management
reports in January, 2014 to provide a base for an arena
revitalization program.
Sarnia Arena
Analysis
BMA Management
Consulting Inc.
1
Arena Analysis - Introduction
 Sarnia, along with many other communities
is facing challenges associated with:
– A changing demographic
– Aging facilities
– Costs increasing faster than inflation
– Realigning assets with community
needs
– Affordability issues
 In addition, the City is facing challenges
with respect to the ongoing third party
operation of the RBC facility and its financial
viability
2
Key Observations - Trends
Aging Arena Infrastructure
 Some Sarnia arenas are approaching or
beyond their functional life cycle
 Older arenas do not operate or
functionally serve their users as
efficiently or effectively as newer
facilities, particularly with respect to
energy efficiency
– The Germain facility is 42 years old
and requires $2.3 million in capital
upgrades as identified in the
Ameresco report (Jan 2013)
3
Declining Number of Youth
 Decline in the number of children and
teens (0‐19) between 2006 and 2013 of
approximately 5%
 Contributes to a decline in minor ice sport
registrants
 Trend is expected to continue
4
Decreasing Participation in Organized Arena
Activities
 According to Health Canada (2006) - 9%
of Canadian children and youth play
hockey, half the percentage that played 20
years ago – this trend is expected to
continue
 Organized sports have witnessed declines
in participation, largely due:
– time and cost constraints along with
competition from new sports
– unorganized/self‐scheduled activities.
 Direct impact on arena revenues
5
Prime Time Demand
 Despite declining registration levels and
ice rentals, the most desirable prime times
consistently remain in high demand in
most municipalities
– Weekdays between 5:30 pm and 10:30
pm
– 6:30 am to midnight weekends –
expand prime time - discussion
 With more households facing time
constraints, there is evidence of a shrinking
“window” of desirable ice times
6
Aging Population
 Aging population means that the child and youth market, who are the
most common users of arenas, is shrinking (in terms of proportion and
number), which in turn may reduce the number of arena users in total
7
Spectator Arenas
 Lease agreement with junior teams is significant to the financial health of
the facility
 Typically, lease agreements involve the team’s basic rent commitment to
the municipality as well as a proportionate split (between the team and
the facility owner) of key revenue sources including ticket sales,
concession revenue, pouring rights, advertising, facility naming rights,
parking revenue as well as suites and club seat revenue.
 Any change in RBC operations would need to consider these factors
8
Arena Analysis – Key Observations
Surplus of Ice
 Based on existing trends, it is
anticipated that the City will have
surplus ice
 Certain municipalities have
explored adaptive re‐use of their
redundant arena facilities for
purposes such as community
centre space, indoor soccer
9
Sarnia Arena Analysis
10
Benchmarking Costs
Municipality
Sarnia
Peterborough
Whitby
Welland
North Bay
Ajax
Cambridge
Halton Hills
Milton
Guelph
Kingston
Kawartha Lakes
Pickering
Barrie
Niagara Falls
Thunder Bay
Sault Ste. Marie
Belleville
St. Catharines
Caledon
Clarington
Waterloo
Newmarket
Average
Median
Indoor Rec.
Facilities sq.
Metres per
1,000
Population
472
710
403
667
242
N/A
370
353
385
481
479
684
437
410
N/A
525
487
1,039
356
530
363
472
504
483
472
Net Costs
per Capita
Excluding
Amortization
$
18
$
27
$
30
$
32
$
36
$
37
$
38
$
40
$
40
$
43
$
45
$
49
$
52
$
58
$
61
$
62
$
63
$
64
$
68
$
79
$
103
$
109
$
120
$
$
 Indoor recreation facility size is
approximately average across
the survey, however…..
 Sarnia’s net operating costs for
facilities is the lowest in the
survey per capita of
municipalities surveyed 50,000150,000 population
 Source: FIRs, BMA Municipal
Study
58
52
11
Options Explored
1. Continue existing operations and
assume responsibility for RBC
2. Repurpose Germain - May 2014
(City operated) and Close RBC 2 –
April 2015
3. Repurpose Germain - May 2014
(Third Party) and Close RBC 2 –
April 2015
12
Option 1 – 2013 Analysis
2013
Actual
$
(53)
$ (121)
$ (328)
$ (230)
(000's)
Germain
Sarnia
Clearwater
Minor Subsidy
2013
Budget
$ (42)
$ (143)
$ (134)
$ (158)
Total
$ (477) $
Difference
$
(12)
$
22
$
(194)
$
(72)
(733) $
(256)
 Actual 2013 reflects an increase in the arena operations requirements
of approximately $256,000
13
Option 1 – 2014 Analysis
2014
Proposed
Budget
Germain
$
(76)
Sarnia
$
(153)
Clearwater
$
(273)
Minor Subsidy
$
(158)
Subtotal
$
(661)
RBC1
$
(367)
RBC2
$
(143)
RBC
$
(510)
Minor Subsidy Adjustment $
(42)
Total
$
 In addition…..
 The inclusion of RBC 1 & 2 as a
City operated facility is estimated
to increase the net levy by
approximately $510,000
 Various options were considered
to help mitigate the impact to the
levy and consider arena usage,
trends and community impact
(1,212)
14
Option 2 & 3 Revenue Analysis
(000's)
Non-Prime
Not Quite Prime
Prime
Off Season Non-Prime
Off Season Prime
Floor Rate
Total
Estimated
Revenues
$
81
$
157
$
1,363
$
11
$
124
$
35
$
1,771
% of Total
5%
9%
77%
1%
7%
2%
100%
 As mentioned in the key observations, prime time hours are the primary
source of revenues
 In Sarnia, prime time revenues accounts for 77% of the total arena
revenues – the analysis largely focuses on arena utilization during
prime periods
15
Prime Time Hours Analysis
Note the prime time hours available are mainly on the weekend which may be
challenging to accommodate existing prime time participants at arenas considered
for closure
16
Prime Time Hours Summary
Total Hours of
Total Hours
Prime Time
of Prime Time
Booked
Total
Remaining
Available
%
Currently
Booked
Germain
1,560
844
716
54%
Sarnia
1,560
1,059
501
68%
Clearwater 1
1,469
1,083
387
74%
Clearwater 2
1,560
1,070
490
69%
RBC 1
1,560
1,282
278
82%
RBC 2
1,560
1,030
531
66%
Total
9,269
6,367
2,902
69%
 Approximately 69% of the prime time hours are currently utilized
 As identified in the key observations, challenges exist to
accommodate potential arena closures within prime time slots
17
Assuming 100% uptake – Best Case
Summary
Total Prime
Time Hours
Available
Hours Booked
Available
Prime Time
Hours
% Booked
All Arenas Open
9,269
6,367
2,902
69%
Close Germain
7,709
6,367
1,342
83%
Close Germain & RBC 2
6,149
6,367 -
218
104%
 Currently the arenas are 69% at capacity during prime time hours
 Repurposing of Germain - Assuming 100% prime time hours at
Germain could be accommodated within the other facilities, prime time
usage increases to 83%
 Closure of RBC 2 - Assuming the closure of RBC 2 in addition to
Germain closure, all prime time hours could not be accommodated
(Best Case - 80% of RBC 2 can be accommodated)
18
Prime Time Hour Analysis – Option 2 & 3
 Upon closer examination of hours
booked, the most desirable time slots
(i.e., prime time) continue to be in
greatest demand
 While arena users continue to book the
most desirable slots, fewer are willing to
rent time outside of the prime times; this
is consistent with observations from many
other communities
– As such, the analysis assumes 60% 100% ability to accommodate existing
prime time hours from the Germain
and RBC 2 to other arenas
19
Germain Assumptions
 Closure in May 2014
 Redistributed revenues to other arenas
– 60% -100% for prime time hours
– Full redistribution of remaining hours
 When fully repurposed:
– Option 2 staff operated using City staff assumptions on revenues
and expenditures
– Option 3 – third party operated, assuming a net proceed of $2,000
per month to the City
20
RBC 1 & 2 Assumptions
RBC 1
 All options reflect City operated facility
 Ice revenue analysis 2013 statistics
 Other revenues based on staff estimates of Sting agreement
 Expenditures – City estimate for staffing needs for ice and facility
maintenance
 HST savings with City operations on utilities – approximate reduction
of $50,000
 Analysis of other operating expenditures with synergies and saving
identified with City operations - telephone
 Advertising and promotion is not a City responsibility
RBC 2
 Closing of RBC 2 in April 2015
 Redistribution of prime time revenues between 60%-80% based on
prime time hours available
21
Option 1
2014
(000's)
City Arenas
RBC
Minor Subsidy
$
$
Total
$
Revenues Expenditures
1,264 $
1,767
1,608 $
2,118
$
200
2,873 $
2015
Net
Expenditures Revenues
$
(502) $
1,264
$
(510) $
1,608
$
(200) $
-
4,085 $
(1,212) $
Expenditures
$
1,767
$
2,118
$
200
2,873 $
2016
Net
Expenditures Revenues
$
(502) $
1,264
$
(510) $
1,608
$
(200) $
-
4,085 $
(1,212) $
Expenditures
$
1,767
$
2,118
$
200
2,873 $
Net
Expenditures
$
(502)
$
(510)
$
(200)
4,085 $
(1,212)
 The estimated net levy related to the arena operations if the City were
to maintain all arenas and take over operation of the RBC is $1.2
million
 Figures have not been adjusted for arena rate changes or CPI
adjustments
22
Option 2
2014
(000's)
100% Allocation
City Arenas
RBC
Minor Subsidy
Revenues
2015
Net
Expenditures Expenditures
Revenues
2016
Net
Revenues
Net
$
$
1,313 $
1,608 $
$
1,657 $
2,118 $
200 $
(343) $
(510) $
(200)
1,468 $
1,437 $
$
1,594 $
1,847 $
200 $
(126) $
(410) $
(200)
1,542 $
1,336 $
$
1,594 $
1,757 $
200 $
(52)
(421)
(200)
Total
$
2,922 $
3,975 $
(1,053) $
2,906 $
3,641 $
(735) $
2,878 $
3,551 $
(673)
60% Allocation
City Arenas
RBC
Minor Subsidy
$
$
1,260 $
1,608 $
$
1,657 $
2,118 $
200 $
(397) $
(510) $
(200)
1,311 $
1,437 $
$
1,594 $
1,847 $
200 $
(284) $
(410) $
(200)
1,384 $
1,336 $
$
1,594 $
1,757 $
200 $
(210)
(421)
(200)
Total
$
2,868 $
3,975 $
(1,107) $
2,748 $
3,641 $
(893) $
2,720 $
3,551 $
(831)
 This assumes the re-purposing of the Germain arena in 2014 with City
operation and closure of RBC 2 in 2015
23
Option 3
2014
(000's)
100% Allocation
City Arenas
RBC
Minor Subsidy
Revenues
2015
Net
Revenues
2016
Net
Revenues
Net
$
$
1,265 $
1,608 $
$
1,605 $
2,118 $
200 $
(340) $
(510) $
(200) $
1,356 $
1,437 $
$
1,451 $
1,847 $
200 $
(95) $
(410) $
(200) $
1,430 $
1,336 $
$
1,451 $
1,757 $
200 $
(21)
(421)
(200)
Total
$
2,874 $
3,923 $
(1,050) $
2,794 $
3,498 $
(704) $
2,766 $
3,408 $
(642)
60% Allocation
City Arenas
RBC
Minor Subsidy
$
$
1,212 $
1,608 $
$
1,626 $
2,118 $
200 $
(414) $
(510) $
(200) $
1,199 $
1,437 $
$
1,451 $
1,847 $
200 $
(253) $
(410) $
(200) $
1,272 $
1,336 $
$
1,451 $
1,757 $
200 $
(179)
(421)
(200)
Total
$
2,820 $
3,944 $
(1,124) $
2,636 $
3,498 $
(862) $
2,608 $
3,408 $
(800)
 This assumes the re-purposing of the Germain in 2014 with third party
operation and closure of RBC 2 in 2015
24
Options - Sensitivity
Option 1
Option 2
Germain
Remain Ice
Rink
Convert May
2014 - City
Operated
Convert run by
Option 3 3rd Party May
2014
RBC 1
City
Operated
City
Operated
City
Operated
(000's) levy requirements
Reallocation
Assumption
RBC 2
Remain Ice
Rink
100% Existing
2014
$
100% Germain,
80% RBC
$
Closed April
2015
60% Germain, 60%
RBC
$
100% Germain,
80% RBC
$
Closed April
2015
60% Germain, 60%
$
RBC
2015
2016
(1,212) $
(1,212) $
(1,212)
(1,053) $
(735) $
(673)
(1,107) $
(893) $
(831)
(1,050) $
(704) $
(642)
(1,124) $
(862) $
(800)
 Existing Arena levy $477,000
 Agreement would have to be made with Sarnia Sting Hockey Club
– the above analysis is based on preliminary staff analysis
25
Options – Per Capita Levy Impact Analysis
Municipality
Sarnia
Peterborough
Whitby
Welland
North Bay
Ajax
Cambridge
Halton Hills
Milton
Guelph
Kingston
Kawartha Lakes
Pickering
Barrie
Niagara Falls
Thunder Bay
Sault Ste. Marie
Belleville
St. Catharines
Caledon
Clarington
Waterloo
Newmarket
Average
Net Costs
per Capita
Excluding
Amortization
$
18
$
27
$
30
$
32
$
36
$
37
$
38
$
40
$
40
$
43
$
45
$
49
$
52
$
58
$
61
$
62
$
63
$
64
$
68
$
79
$
103
$
109
$
120
$
58
(000's) levy requirements
Per Capita Levy Change
Germain
RBC 1
RBC 2
2014 2014 2015
City
Remain Ice
Option Remain Ice
1
Rink
Operated
Rink
$
9 $ 9 $
9
Convert
Option May 2014 City
Closed April $
2
City
Operated
2015
Operated
$
Convert run
Option
City
Closed April $
by 3rd Party
2015
3
Operated
May 2014
$
26
7 $
3 $
2
8 $
5 $
4
7 $
3 $
2
8 $
5 $
4
Attachment #2
ARENA STRATEGY USERS FOCUS GROUP REPORT
FEBRUARY 26, 2014
PREPARED BY DONALD W. COOK, FACILITATOR
ARENA STRATEGY USERS FOCUS GROUP
Introduction
This report is a compilation of information gleaned from a meeting held on February
26th, 2014 at City Hall with eleven representatives of some of the various user groups
and City staff. City staff posed five questions to these user groups at the meeting
pertaining to the potential closure of arenas. Information was also garnered by means
of emails from these user groups to the Facilitator with their responses about the
possible consequences or impact on their organizations.
First of all, I will begin with the discussion of information at the afternoon meeting on
February 26th.
Those in attendance:
Doug Jackson, Skate Sarnia
Sonya Rivard, Bluewater Training Centre
Mark Moore, Bluewater Training Centre
Brad Jackson, Sarnia Girls Hockey Association
Vikki Praill, Tourism Sarnia Lambton
Anita Trusler, County of Lambton
Linda Lauzon, Sarnia Hockey Association
Mike Johnson, Sarnia Hockey Association
Tom Knight, Sarnia Legionnaires
Margaret Misek-Evans, City Manager
Ian Smith, Director Parks and Recreation, City of Sarnia
Don Cook, Facilitator
Background
Ian Smith began the meeting with an explanation that City Council wanted there to be a
public process in place to ensure all groups affected by a decision concerning the
possible closure of an arena might have an opportunity for input. Ian gave a brief
background starting with the 2010 Arena Review process and basically explained what
had transpired leading to the January 2013 Ice Allocation Policy approved by City
Council. In June 2013, arenas were trending in the wrong direction and this downturn
prompted the need for an asset management program review. Two subsequent
meetings were held in November 2013 and January 2014 that resulted in Open Session
Reports to Council with staff recommendations. Some of the group had not seen this
information and wanted to know how to access it.
The meeting Facilitator was introduced and he reviewed the Agenda including the five
specific questions that the City posed. The City wanted to receive feedback from the
five major ice user groups in order to better inform Council and help them with their
decision-making.
Before going any further, the user groups representatives’ expressed a lot of concern
about the process of this meeting. They believed they were coming to give opinions
about their use of the current facilities. Instead they felt that ‘it was a done deal’ and
that the staff questions were not about whether an arena(s) could be put to better use,
but there was definitely going to be a closure of some sort. Several representatives
said they hadn’t received an Agenda, nor did they receive a copy of the proposed Draft
Schedules 2014-2015 for the closures of Germain only, RBC#2 only or both. Therefore
they believed it would be very difficult for them to respond to these five questions, in a
two hour period, without talking things over with their respective organizations.
Ian Smith explained that the reason the Draft Schedules for 2014-2015 were not given
out earlier was the fact that he did not want this information to get into the wrong hands
and have it go viral. He repeatedly stated that these Draft Schedules were just that – “a
draft” and things could or would change based on the feedback that he hoped to receive
from the representatives at this meeting. Several of the representatives said that their
ice scheduler was more knowledgeable about whether changing user times and moving
to other ice pads would work or not. As well, several said they would have to check with
Hockey Canada’s mandated guidelines to see whether these proposed time changes
would be compliant or not.
Copies of the Draft 2014-2015 ice schedules were then displayed indicating where the
various user groups could be moved to, if .....
a) Germain only was closed,
b) RBC#2 only was closed,
c) Germain and RBC#2 were both closed.
At this meeting several other questions or concerns were raised by this group, namely:
• Has there ever been any marketing initiatives explored by the City that would help
to promote greater use of ice?
• Does the City have a master or Strategic Plan for the long-term use of arenas in
Sarnia?
• Has anyone considered or explored the potential for more sponsorship of arenas,
such as naming rights for arenas and selling rink boards for advertisements, etc.?
• Why hasn’t Council spent more money on upkeep of existing arenas, but can
spend money making improvements in front of City Hall?
• Why is the tax levy of $18/per capita for arena sports in Sarnia one of the lowest
levy’s, if not the lowest, in Ontario? Isn’t the average levy across the province for
cities of a similar size $58/per capita?
• Is there a chance for one or two of the user representatives to make a
presentation to Council to help with their decision-making before or at the March
24th Council meeting?
• Isn’t it hard for Council to make long-term decisions about RBC#1 and #2, and
Germain Arena, when things are still up in the air regarding potential changes
and ownership rights?
• Concern was expressed that by reducing the number of ice pads, it would cause
less flexibility in scheduling in all remaining arenas. That would then possibly
drive more youth away from participating because of the loss of prime times.
• Concern was expressed regarding the possible closure of ice pads and that it
could have a pronounced impact on Tournament events (like Silver Stick) to the
extent that other nearby cities may go after these successful major tournament
events that have gone on for years in Sarnia because of a lack of local ice space.
Another major spin-off may also be the loss of millions of dollars that the
community hotels, restaurants and other entertainment venues currently enjoy.
At a time when the City is desperate to attract businesses and tourists, why
would we want to put yet another stake in the coffin for promotion of our City?
• It was mentioned that at a time when so much attention was being placed on
child and adult obesity, why would this city want to limit the opportunity for more
people to get involved with ice sports and exercise? Realizing that ice use is
expensive, by creating a more reasonable tax levy for arenas and having
available more ice pads might allow more people to be able to afford to
participate. (Two of the representatives said they had already applied to the
Trillium Foundation for a $20,000 grant to help defray some of the costs that
prevent some young people and their families from participating in sport
activities.)
• Concern was expressed that most of the scheduling for 2014-15 must be
completed by May for most of the user groups and user groups don’t want to see
a wrong decision made hastily.
• It was mentioned that user groups could apply for grants that municipalities don’t
qualify for and use those funds towards arenas. Has this ever been considered?
• What about “fund raisers” such as a “Save the City Arena” fundraiser. Nothing
has been done along those lines to save our arenas.
• A Strategic Plan needs to be in place with input from user groups, but not at the
last moment (as is happening now).
• Several comments were made that indicated there were too many ‘unknowns’ to
be able to make a good and balanced decision.
• Some agreed that something needs to be done regarding Germain if this is the
best decision that can be made after all considerations have been explored.
• Ian wanted everyone to know that when RBC#2 closing came into play, everyone
who would possibly be affected perked up, but no feedback was given when talks
were about closing just Germain arena. Notices have gone out in previous years
regarding closing Germain with no reaction from the public.
• Ian also explained that if Germain were re-purposed with gravel topped by
artificial turf, it could later be returned to an ice pad if needed without too much
difficulty; however RBC#2 could not. He went on to explain that the
rationalization to close Germain was based on the fact that Germain is only used
9 months of the year, and only 40% of the time during the ice season.
• To respond to one of the questions put forward: “If they close Germain to reduce
part of the deficit for ice usage, would the money saved be allocated to the other
arenas for repairs?” Ian explained the dollar amounts that could be saved by
closing Germain could be as high as $475,000 (taking into consideration staff
reductions, increased revenues, operating expenses and other options.)
• Lastly Ian wanted to assure the group that City Council was very serious about
giving their full attention to this issue of the arena closure and the effects it would
have on the community as a whole.
The Facilitator determined at this time, that perhaps it would be best to provide the
necessary copies of the Draft Schedules 2014-15 as well at the current 2013-14
schedules to the user groups. This would give them a greater opportunity to talk to their
respective associations. They could then make a more informed response and present
their comments, concerns and additional information to Council. Consequently Council
members would be able to make their decision with more accurate information.
The representatives for the five major user groups agreed to take this information
regarding the Draft Schedules and respond to the five questions being asked and
submit them by email to the Facilitator by March 5, 2014. Their responses are reported
in the attached Appendix, question by question.
APPENDIX
RESPONSES FROM FIVE MAJOR USER GROUPS
Question 1(a)
Based on proposed draft schedules, would your organization’s
requirements be accommodated?
-andQuestion 1 (b)
What changes can you suggest to the schedules to better meet your
needs?
Sarnia Hockey Association
If only Germain were closed...
1(a)
- Our needs would be met with 2.5 hours of ice left over.
- This is contingent on current registration numbers of teams (2013-2014).
- Hard to know what impact (shortfall of ice in hours)
- If registration numbers increase for 2014-2015 or beyond and there is no ice
available that fits with the guidelines set by Hockey Canada, then we would
have to tell them they cannot play hockey.
If both Germain and RBC#2 were closed ...
- Assuming numbers and teams stay status quo, then we would gain 1.5
hours of ice, assuming the one hour at RBC#2 can be absorbed into
another arena/pad.
- If player numbers should increase for 2014-2015 and there is no ice
available that fits the guidelines set by Hockey Canada, we would have to
tell some of the youth they cannot play hockey in Sarnia.
Sarnia Girls Hockey Association
Note: They did not indicate whether the closing of just Germain or both Germain
RBC#2 would meet their needs but rather, indicated the impact of any
closures in general on Girls Hockey, as follows:
1(a)
- The 2013-2014 schedule at Germain on Wednesday and Thursday had
consecutive ice time of 3 hours each (7-10 p.m.) on both nights. Why do
we lose consecutive ice time which allows for juggling between teams
during the season on two weeknights? These are our largest ice-use nights
and they have been decimated by the Draft Schedule Proposal.
- RBC#2 Saturday and Sunday consecutive ice should be restored for SGHA
based on discussions and agreement/promise from RBC General manager
in the Fall 2013 at our Executive meeting i.e. Saturday 12:00 -5:30 p.m. and
Sunday 12:00—7:00 p.m. (times are approximate).
- If City has an issue honoring a promise made by Sting Management, how is
that Lambton AAA ice times have been largely unaffected this year and
next?
- Plunking ice into spots here and there may end up as an equivalent total
number, but is not a useful/practical solution.
- Too much ice assigned on Saturday and Sunday, to the point that teams
playing that day would also need to practice on that same day.
- In general, concern was expressed that some of the major users are getting
better ice times than Girls Hockey. How is this fair in the re-balancing
process?
- In the end, the current proposal will turn parents off and as a result we’ll end
up with fewer teams.
Lambton AAA
If only Germain were closed ...
1(a)
- Our needs would be met as currently Lambton AAA does not utilize any ice
from Germain.
If Germain and RBC#2 were closed....
- Lambton AAA would be short 18 hours.
- If RBC#2 closes there will need to be a review of the ice slots moved from
RBC#2 to other arenas to ensure the times are conducive to Hockey
Canada mandated guidelines.
Skate Sarnia
If only Germain were closed:
1(a)
- The Draft 2014-2015 schedule indicates Skate Sarnia would retain all of our
current ice usage at Sarnia Arena so this would indeed meet our current
requirements.
If both Germain and RBC#2 were closed:
- It is very apparent from the 2014-15 Draft Schedule, where only Germain is
closed, there is a lot of ice time booked in RBC#2 which would seem to be
difficult to fit into the remaining arenas without a lot of shifting around of
groups normal time slots. If you look at our response to question 2, we are
very limited in our ability to move our time slots.
1(b)
- Skate Sarnia has already done some preliminary appraisals for the 2014-15
season because of this Arena Strategy issue and there is a possibility that
we may reduce or even eliminate our ice usage on Friday, provided we are
able to secure some additional time on one of our other skating days.
Bluewater Regional Training Centre
If only Germain were closed ...
- I think that we would be fine. If you close both arenas, depending on who is
running the RBC, it would impact us as our schedule will overlap winter
season.
- I would also not see any room for growth, as this year (2013-2014) we have
already added to our Spring program.
- We have, in the last three years, added a power skating program for hockey
as well.
Question 2
What is the greater priority for your organization? Usage Time or Ice
Costs?
- Our greatest priority is cost, but time slots must be important as well as
based on the ages of our players.
- Usage time is foremost to stay within the mandated guidelines set out from
Hockey Canada; as well as ice costs and the ability to increase our program
if needed.
- If ice costs are not reasonable or too high, SHA risks less youth playing
hockey and in turn the City loses revenue and our ice usage goes down.
Balancing this situation will be difficult !
- Both are priorities. Usage time needs to be appropriate for the age
category of the players involved and the available ice needs to be allocated
fairly.
- Ice cost is the major part of the cost associated with playing hockey and if it
rises too much more it will drive families out of hockey. (They may move to
other arenas outside Sarnia or quit playing altogether.)
- Lambton AAA
- Usage time is foremost, to stay within the mandated guidelines set out by
Hockey Canada, and ice costs and ability to increase our programs for skill
clinics and other events such as Novice Showcase are also important.
- In addition, if ice costs are not reasonable or even too high, we risk losing
youth playing hockey which in turn the City loses revenue as our ice usage
goes down. There must be a fine balance between the two (usage and
cost).
Skate Sarnia
- Our highest priority is usage time, both the amount of time and when that
time is scheduled during the week.
- We have very little flexibility in moving time slots, as most of our skaters are
in grade school, and all of our professional coaches have contracts with
other skating clubs or have other jobs.
- Most of these coaches don’t live in Sarnia and there are very few other
coaches available in the area.
- Certainly ice cost is also a major concern as it is our biggest single
expense, which the parents of our skaters must bear.
- As a Director, cost is a factor and with low ice costs programs could be
more affordable and attract more participants. Generally, as a parent the
cost is what it is and if their child wants to participate in a sport there are
different price points available in every sport for families to decide upon.
Question 3
What would your organization need in terms of a trade-off to use less
than “most desirable ice time” i.e. mornings, after school before
prime-time?
-
Because the schools in Sarnia stagger their start and stop times, we would
have difficulty using ice prior to school or directly after. We could use 6:00
or 6:30 a.m. if it was available. The trade-off would be a better price for ice
usage.
-
We could utilize early mornings ice (7:00-8:00 p.m.) for public school
participants (younger teams) and mid-afternoon (3:30-5:00 p.m.) for older
participants at a reduced rate. These non-prime times could be spread
over the various youth user groups. Adult user groups can be given a
reduced rate to start at 10:00 p.m.
-
“That question is very difficult to answer based on “most desirable” times.
Sarnia Girls Hockey draws players from across Lambton County. That
makes it difficult to practice before school or right after school. The
logistics of this would be difficult to accomplish and would, in all likelihood,
drive many girls out of hockey. (There needs to be more exact information
to make that work.)”
Lambton AAA
-
Lambton AAA would not benefit in terms of a trade-off to use less than
“most desirable times” since 20% of the 136 registered players are from out
in the
County or outside of the County. If all players on one team were within the
City limits, early morning 7:00-8:00 a.m. or mid-afternoon 3:00/3:30 – 5:00
p.m. might be a possibility, plus reduced rates might be a deciding point.
-
In addition, to trade off times, our program uses the RBC for our hockey
program in two key areas. We use the RBC Centre for our ‘dryland’
training. These training times are typically tied into the ice time when the
teams practice. Each team has two 1.5 hour practices per week plus the
additional ‘dryland’ training. This can, in fact, mean a child is at the arena
for up to 3 hours at a time. So having to move to outside arenas would
affect our ability to deliver that piece of the program.
Sarnia Skate
-
As described in our response to question 2. We have very little flexibility in
moving our time slots. We already make use of “not-quite-prime” and “nonprime time” during the week, but are constrained by school schedules and
limited by ice allocated to other groups.
-
I guess the key factor would be to offer cheaper ice costs in the time
frames that are struggling. This would hopefully try to encourage greater
use. We have always used some early mornings year round and people
of the ice.
Question 4
Do you have any requirements for summer ice time?
-
Yes, tryouts in May and in late August. With moving to Spring tryouts and
teams being picked, we can see an increase for summer ice usages for
teams to stay conditioned over the summer months. Reduced costs would
be an incentive for teams to utilize ice more over the summer.
-
No specific requirements but our tryouts generally run from mid-April to
mid-May. I am not exactly sure even what the City defines as ‘summer
ice’.
Lambton AAA
-
Lambton AAA hosts tryouts in April utilizing approximately 42 hours of ice
over two/three weeks. Teams are picked by the end of April, therefore
there is a need for summer ice usage for teams to stay conditioned over
the summer. Reduced costs would be an incentive for teams to utilize ice
over the summer. (Note: We are currently negotiating with outside
providers to help deliver summer ice programs this year.)
Skate Sarnia
-
We have arranged for summer ice in the past, but we do not have a
specific plan in place at this time for the coming summer.
-
Spring, Summer and Fall are our seasons of operation offering off-season
skating school for the surrounding clubs. Before training was at Germain
and now at the larger training surface at RBC#2. We are expanding our
spring programs as the closest rival school is moving from Strathroy to
Komoka. We have attracted more skaters from the Watford area and are
anticipating more growth in the coming years.
Question 5
Would you be willing to move to either RBC#1 or #2 if more
appropriate times were available for your program?
-
Yes, for the same/reduced cost, and the ice slots are conducive with
Hockey Canada guidelines.
-
Sarnia Girls currently use large blocks of ice at RBC#2. It’s easy to say we
would move, but without more concrete information it makes it difficult.
Lambton AAA
-
Yes, RBC#1 on the weekends for game times and for when, or if, RBC#2
closes only if the ice slots are conducive within Hockey Canada guidelines.
Sarnia Skate
-
Using RBC ice for our regular winter programs in NOT a viable option for
Skate Sarnia, as we have a lot of skating supplies and program records in
our rooms at Sarnia Arena that are used by our coaches to present our
skating programs. We cannot afford to duplicate these supplies at RBC,
nor expect our coaches to transport them between arenas. In addition, we
are not aware of adequate office and storage space being available for our
needs at RBC.
-
We essentially work out of the RBC#2 ice pad and have since its opening –
so this is not a problem for our organization.
Additional Comments
Sarnia Girls Hockey Association –
What utilization rate would be required to keep Germain arena open?
Wouldn’t it be helpful if we got the user groups together to re-allocate ice at Germain
and see if just through a re-organization if we couldn’t raise the utilization rate?
In closing, with closing Germain, I think that everyone could benefit and the City could
start the ground work for getting back on track and update existing arenas. This move
would give us pride in cleaning up the facilities and attracting more user groups.”
It would be more costly to have summer ice in the main rink at RBC#1 than the practice
side of RBC#2. The thing is that by taking a facility like RBC#2 out of play, it certainly
limits what events of all nature that can come to our wonderful area.
Additional Comment’s from Mark Moore – April 16, 2014
Sonia and I would like to let you know about our spring session. Spring enrolment is in
and as anticipated we took an extra week and our numbers are up. The numbers for our
power skating went from 14 last year to 24 this year and we are thinking of adding
another session in the summer and maybe an additional time next spring. The other
sessions are up as well our canskate program has 30 skaters and last year had 22. The
private sessions which are the bulk of our school are up about 25% from 8-10 skaters
per session to 10-14. This all being said our numbers for our school which are providing
skating for 100 plus skaters in the city and surrounding areas are still growing. This year
we added an additional week to our school which equates to another 18- 20 hrs. of ice
time. I just would like this to be added to the rest of the information that we had sent in
after the focus meeting. These are accurate and current numbers that are reflecting our
position on the arenas and the necessities of year round ice time.
Thanks
Mark Moore
Attachment #3 Arena Ice Schedules without Germain Arena (demonstration only)
1
Attachment #4 Arena Ice Schedules without RBC#2 Arena (demonstration only)

Council Report format

Transcription

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