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SARNIA CITY COUNCIL June 23, 2014 4:00 p.m. COUNCIL CHAMBERS, CITY HALL SARNIA, ONTARIO SPECIAL MEETING AGENDA Page Disclosures of Pecuniary Interest (Direct or Indirect) and the General Nature Thereof Action Items 3-26 1. Director of Parks and Recreation and Director of Finance, dated June 2, 2014, regarding Arena Management Strategy – Timing of Next Steps Public Input into Arena Futures (Attached) That Sarnia City Council approve the revised timetable for undertaking the components of the Arena Management Strategy as outlined in this report; and That Sarnia City Council authorize the expenditure of funds for the feasibility analysis, arena structural review and sponsorship program development as outlined in this report from the Parks & Recreation Facility Reserve, to an upset limit $75,000. 27-28 2. Director of Parks and Recreation, dated June 18, 2014, regarding Canadian Hockey Association – Host Agreement That should the opportunity arise that the Mayor and Clerk be authorized to sign a Host Agreement with the Canadian Hockey Association to host the 2014 World Under 17 Hockey Challenge. 29-38 3. City Solicitor/Clerk, dated June 19th, 2014 regarding Sarnia General Hospital Lands - Proposed Sale by RFP Emergency Medical Services Lands - Proposed Sale to County That the City’s interest in the Sarnia General Hospital (“SGH”) lands, including those lands used for emergency medical services (“EMS”), be declared surplus. That the Sale of Land Bylaw and the Surplus Asset Disposal Policy requirements be waived in disposing of these lands. Page 1 of 41 Page Action Items That a request for proposals (“RFP”) be issued with the support of Bluewater Health (“BWH”) for the SGH lands, except for that portion required for EMS. That the City’s interest in the lands required for the County’s EMS operation be sold to the County of Lambton for $1.00. BY-LAWS 39-41 1. For 1st, 2nd and 3rd Readings: A By-law to Confirm the Proceedings of Council at its Meeting held on June 23, 2014 Page 2 of 41 Action Item #1 - June 23, 2014 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 Brian McKay, CPA, CA, Director of Finance DATE: June 2, 2014 SUBJECT: Arena Management Strategy – Timing of Next Steps Recommendation: It is recommended: 1. That Sarnia City Council approve the revised timetable for undertaking the components of the Arena Management Strategy as outlined in this report; and 2. That Sarnia City Council authorize the expenditure of funds for the feasibility analysis, arena structural review and sponsorship program development as outlined in this report from the Parks & Recreation Facility Reserve, to an upset limit $75,000. Background: At the recent Council meeting of April 28th, an Arena Management Strategy was approved by Council. The strategy took a longer term view of arena needs in the City, directing staff to undertake a feasibility analysis for arena facilities, an asset management plan for all arenas and to finalize negotiations by June 30, 2014 with Lambton College on potential divestiture and repurposing of RBC2 to a multi-purpose field house. In addition, the strategy indicated continued operation of the City arenas, the development of a sponsorship program and directed staff to work with user groups to transition to five ice surfaces from the current six. Since this report was considered by Council, staff have focused efforts on transferring RBC operations to the City from the current operator. As part of this process, a tour of the facility was conducted and it was determined that Page 3 of 41 Action Item #1 - June 23, 2014 a structural assessment is in order. Further discussions with Lambton College have indicated that the College wishes to know the outcome of the structural assessment prior to finalizing negotiations on RBC2. Following the April 28th meeting of Council, correspondence has been received from user groups and citizens indicating some confusion regarding the Arena Management Strategy. To remedy this, staff have prepared the Frequently Asked Questions (FAQ) guide attached to this report. Concerns were also raised regarding the order and timing of undertaking the components of the Strategy. Specifically, there is a desire to see the feasibility study and asset management plan completed prior to any decision made by Council on a proposal to divest RBC2 to the College. Staff have considered a revised timetable for the work with the three components of feasibility analysis, asset management plan and College divestiture proposal being completed simultaneously for Council’s consideration in January, 2015. The College is amenable to this timetable as it provides additional time for their due diligence. This report is an update on the next steps of the Strategy with this revised timetable in mind. Comments: The next steps/timeframe for each component of the Arena Management Strategy are provided below following on the resolutions adopted by Council on April 28th. 1. “That Council direct staff to prepare a report analyzing the feasibility of constructing a one or two pad arena to partner with Clearwater Arenas as a multi pad complex replacing Sarnia Arena and Germain Arena by 2020.” Staff plan to undertake the feasibility report immediately with the report addressing the following components: • Demographic and arena usage analysis to determine arena needs over time; • Structural assessment of all arena facilities to determine building and component life expectancy and investment requirements to meet current standards to be completed by a qualified Engineer; • Development of various scenarios to meet future needs, i.e., renovating or building new; • Feasibility assessment of various scenarios, including consideration for capital, operating, financing and implications for the tax base for each scenario; Page 4 of 41 Action Item #1 - June 23, 2014 • Assessment of available funding sources for each scenario; • Input from all sports groups including hockey, soccer, lacrosse as well as other indoor sports organizations/ groups; • Locational and site analysis of future arena needs. This work is a continuation of the arena study undertaken by BMA Management Consulting (BMA) in the Fall of 2013. BMA will continue to function as the lead consultant; other specialist work, including demographic analysis, would be sub-contracted by BMA as required. BMA will complete the additional arena feasibility report within the context of the operations of the Parks & Recreation Department in order to report on department-wide savings. This work will be undertaken over the coming months with a report to Council in January, 2015. 2. “That an Asset Management program be established for all arenas using the report as prepared by Ameresco in 2013.” The Asset Management program will include a review of all City arenas by a qualified Engineer to determine their structural integrity and will also rely on the Ameresco report as well as other available resources. The Asset Management Program will be undertaken by City staff with the goal of having a preliminary component finalized for inclusion in the 2015 Parks and Recreation Capital Budget process. The final Asset Management Program report will be presented to Council in January, 2015. 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.” This recommendation provides for Germain Arena to remain open for the 2014-15 ice season and makes provision for summer ice in the Sarnia Arena commencing in 2015 in the event that RBC2 may be divested. The future of Germain beyond the upcoming ice season and the location of summer ice will be contingent on the outcome of future Council decisions regarding the feasibility study, asset management and divestiture proposal. 4. “That the City finalize negotiations with Lambton College on the divesture of the RBC#2 by June 30, 2014 to allow the Page 5 of 41 Action Item #1 - June 23, 2014 College to acquire and repurpose the facility to a multipurpose field house with the project work to begin on April 1, 2015.” Discussions with the College will continue over the next several months to allow the College to undertake its due diligence as well as benefit from the feasibility analysis and asset management plan prior to finalizing negotiations. It is intended that the final divestiture proposal will be reported to Council in January, 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.” This activity will be implemented after January, 2015, pending the decisions of Council on the other components of the Strategy. 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.” The development of a sponsorship program will be undertaken by BMA in conjunction with the feasibility analysis and will be provided to Council for consideration in January, 2015. Consultation: Consultation on this report was with the City Manager and the City Solicitor/Clerk. Financial Implications: The feasibility report, including the structural analysis and sponsorship program report, will be funded from the Parks & Recreation Facility Reserve, with an upset limit $75,000. This reserve has an uncommitted balance of $82,533.00. Prepared By: Prepared By: Ian J. Smith Brian McKay, CPA CA Director of Parks and Recreation Director of Finance Page 6 of 41 Action Item #1 - June 23, 2014 Approved by Margaret Misek-Evans City Manager Attachment: Frequently Asked Questions – FAQ Page 7 of 41 Action Item #1 - June 23, 2014 Attachment 1 Frequently Asked Questions – Arena Management Strategy What is the present use at the City Arenas? • On average, currently, the arenas are booked 66% of prime time.
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