The Corporation of the TOWN OF MILTON

Transcription

1 The Corporation of the TOWN OF MILTON Report to: From: Chair & Members of the Community Services Standing Committee Jennifer Reynolds, Director, Community Services Date: May 04, 2009 Report No. COMS Subject: Municipalities of Milton, Mississauga and Oakville Shared 50m Pool Study Final Report RECOMMENDATION: THAT COMS be received for information; AND THAT Milton Council support the recommendations contained in COMS ( Municipalities of Milton, Mississauga and Oakville Shared 50 metre Pool Study ) AND THAT Milton Council support the recommendation that Milton not proceed with a Shared 50 metre pool at this time. EXECUTIVE SUMMARY Council authorized Milton participation in a Shared Study process regarding a 50m pool with the City of Mississauga and the Town of Oakville (CS ). This project was initiated by the City of Mississauga and done in conjunction with their assessment of all aquatic facilities in the City. A subsequent part of the study was then undertaken with the Town of Oakville and the Town of Milton to assess the feasibility of developing a Shared 50m pool facility that would serve all three communities. Mid way through the study process, municipalities became aware of the 2015 Pan American Games GTA/Greater Golden Horseshoe bid and the potential interest in this joint facility to serve as a training facility for the Games. This information changed the focus of the Shared 50m Pool study in order to quickly assess the project in relation to Games needs and, following the Games, local community needs for the 3 partners. Staff has previously reported that the recommendation to proceed with the project as part of the Pan Am Games was not supported by either Oakville or Mississauga Councils. The staff team has continued to work on completing the Shared 50m Pool Study, and it is being presented to Council as the final report.

2 The Corporation of the TOWN OF MILTON Report No.COMS Page No. 2 Claire Tucker Reid & Associates will be in attendance to provide a brief overview of the study process and recommendations. REPORT Background Community Services Master Plan The Community Services Master Plan report, which included significant consultation with the general public and user groups on all recreation, parks and cultural service areas, concluded the following with respect to 50m Aquatic facilities in Milton; There is a growing belief that large aquatic complexes should be built as regional facilities, developed in partnerships involving several municipalities and preferably with the participation of senior levels of government. This is the type of investigation that is currently underway in the City of Mississauga who is studying the development of a 50- metre pool to serve the regional market, including the Town of Milton and the Town of Oakville. Unless the Town decides to make it a strategic priority to provide elite-level competition and training facilities as part of its overall corporate mandate, the Department should continue to focus on the provision of services that best meet community need for the average household. The Town should undertake further study into the provision of a 50m pool when conducting the aforementioned feasibility study to determine aquatic facility components for the Milton Sports Centre expansion. Pursuant to this Community Services Master Plan direction, The Town of Milton, Town of Oakville and the City of Mississauga participated in a Shared 50m Pool Study process to determine the feasibility of developing a shared 50m pool facility. Individually, all 3 Municipal master planning documents for recreation facilities could not support a 50m Pool. Consequently staff recommended that a Shared study process be conducted to assess the feasibility for a shared facility. During the study process, the 2015 Pan American bid process for the GTA/GGH was announced and the study process was adjusted to quickly determine if there was a business case for a shared facility that would meet the venue requirements for the bid book. Upon detailed analysis and review, it was determined that this type of project could not be supported for the Pan Am bid and was subsequently not recommended. Staff continued work on the Shared study process to finalize the report.

3 The Corporation of the TOWN OF MILTON Report No.COMS Page No. 3 Discussion The study process was to consider the feasibility of a joint Western GTA regional aquatic facility. This planning exercise commenced in late 2007 and was intended to explore the following; the need for this facility a recommended preferred site elements and components to be included in the complex estimated capital construction costs projected operating revenue and costs, and the impact of such a complex on the aquatic service delivery strategies of the participating municipalities This study was coordinated by the City of Mississauga and jointly funded by all three municipalities. The study was conducted in two parts, with the City of Mississauga undertaking a review of its own school pools as the first part of the study process, and the feasibility of the Milton, Mississauga and Oakville (MOM) 50m pool as the second part of the study process. Much of the analysis and data collection on the joint pool project was used as background information for the Pan Am Games pool consideration. An Open House was held in December 2008 with aquatic groups from all three municipalities. The visual material provided to the groups was as a result of the MOM 50m pool study process, but used to display options related to the potential Pan Am Games facility. The process to evaluate the feasibility of the MOM 50m aquatic complex involved considerable research and public consultation to ensure that any eventual facility recommendations would be capable of meeting competitive and community needs, while remaining within an envelope of reasonable financial affordability. Recognizing that the building program must respond to the program and service requirements of constituents from all three municipalities, the study s consultants and committee members met with the vast array of user groups and stakeholders from all three municipalities. Research also included discussions with operators of other comparable 50m aquatic complexes across Canada. Description of 50 Meter Pool / Aquatics Complex Project The project being considered in the Shared 50M Pool study is a +/- 98,500 square foot (s.f.) facility with the following components: 50M competition pool, seating (approx. 1,800), change rooms, meeting rooms, offices and lobby/public areas, 63,800 s.f.

4 The Corporation of the TOWN OF MILTON Report No.COMS Page No. 4 25M leisure pool, therapeutic pool, water slide, ancillary deck amenities, family change room, 25,325 s.f. and, Fitness Centre, 9,350 s.f. Among the key concepts built into the facility are LEED certification and accessibility initiatives. The preferred location, based on a process of criteria screening, is a parcel of land owned by the City of Mississauga, located in the 9 th line corridor, Town of Milton. Preliminary study results indicated that in terms of customer reach and operating viability, an aquatics complex with supporting amenities would be recommended. A stand-alone 50M pool would serve a very limited segment of the community and therefore, the preferred facility design should effectively blend both competitive and leisure pool concepts, such that a variety of water-based activities can co-exist within the complex and the facility use is maximized. Also, multi-use facilities typically include synergistic amenities / facilities, such as fitness facilities, meeting rooms; concessions etc., not only to appeal to the broadest segment of the community, but also to produce significantly more operating revenue that would assist with offsetting the substantial operating costs normally associated with 50M pools. For these reasons, the consultants would not recommend a stand-alone 50M pool. Notwithstanding that, however, the benefit of the leisure pool and associated community based amenities (fitness, meeting rooms, leisure components) to Milton residents would likely be quite limited due to the location of the proposed facility in the 9 th line corridor, immediately adjacent to an existing residential community located in Mississauga. The benefit for Milton for this facility would primarily go to Milton s existing and future aquatic clubs. The Shared 50m Pool Study Executive Summary and Recommendations can be found in Schedule A, pages 3-5 and are outlined below; Executive Summary of Findings and Recommendations The Shared 50 Metre Pool Study was jointly commissioned by the municipalities of Mississauga Oakville and Milton (MOM) to determine the need and feasibility of a shared 50 metre pool to serve the community aquatic and competitive swimming requirements of the three municipal partners. The concept of a shared 50 metre pool seemed a reasonable approach based upon the premise that a joint facility would serve a large customer base drawn from a broad catchment area while limiting the collective fiscal burden borne by each of the three municipalities. The research phase of this project included an examination of numerous previous aquatic needs analysis including an Aquatic Federation of Canada project which concluded that the aquatic community would benefit if additional competitive pools were to be developed in Ontario. The Shared 50 Metre Pool Study was to consider the findings of previous research as well as consultation with pool users of all three

5 The Corporation of the TOWN OF MILTON Report No.COMS Page No. 5 municipalities including competitive swim clubs. Ultimately, the study was to investigate the viability of a joint facility in terms of its ability to meet the tri-municipal current and future aquatic demands compared to the cost of developing and operating the facility. Furthermore, the study was to determine the key characteristics that would be necessary for a partnered facility to be successful. The research phase of the study revealed that Milton and Oakville had latent community aquatic needs that are expected to grow as populations increase within each jurisdiction. Although Mississauga s aquatic needs are met, the City will be required to re-purpose aging school pools in the future. Aquatic sport clubs in all three municipalities report un-serviced demand and expect their needs will grow as the number of competitive aquatic enthusiasts increase through population growth. Based upon the provision standard suggested by the Aquatic Federation of Canada, the population base of Milton, Mississauga and Oakville would not support a 50 metre pool until the combined tri-municipal population increases by 25%. This population level is not expected to be achieved for least the next two decades. In summary, the thorough needs analysis revealed that the proposed 50 metre pool: would meet all of the current and future program requirements of the aquatic sport clubs in the three municipalities; would not fully meet the current and future community aquatic requirements of residents in Milton and Oakville; and would not meet the needs of swimmers displaced from re-purposed to pools in south Mississauga. Through several facilitated meetings, the perspective partners agreed that reaching consensus and positive results related to several necessary conditions would be crucial to the development of a successful partnership for the facility. To assist in the analysis and to format the study recommendations related to a viable facility that would be developed and operated using a partnership model, the necessary conditions were employed as the analysis filter. The results of this analysis are presented below. Community Need Location While the new 50 metre venue would meet the needs of competitive sport clubs, there is not sufficient evidence that it would meet community aquatic requirements to the extent that each municipality could forgo other planned pool development projects. The preferred site is unencumbered by development impediments and would be a destination for competitive swimmers. However, the location is remote from the southern portions of Mississauga and

6 The Corporation of the TOWN OF MILTON Report No.COMS Page No. 6 Governance, Management and Ownership Mutually Agreeable Space Program Capital Cost Sharing Formula Operating Cost Sharing Formula Benefits Based Value Political Support Readiness Oakville which could represent a barrier to participation by residents from these municipal regions. The perspective partners reached consensus on a mutually agreeable governance, management and ownership model. The perspective partners agreed that the space program for the aquatic portion of the complex was reasonable and acceptable. However, Oakville and Milton raised concerns regarding the questionable community benefit they would realize from the fitness centre. The perspective partners reached consensus on a mutually agreeable capital cost sharing formula based on the percentage of the respective municipal population as compared to the total population of the three municipalities. The perspective partners reached consensus on a mutually agreeable operating cost sharing formula. Each perspective partner raised concerns about cost of the facility relative to its ability to meet broad community aquatic requirements through equitably distributed aquatic facilities. At issue was a capital cost of $51M and an annual operating subsidy requirement in excess of $1M for a facility largely targeting the requirements of aquatic sport clubs. Although the clubs are an important element in the support mechanism for sport development within the three municipalities, it is difficult to rationalize the value/benefit associated with spending considerable funds to service approximately 1,500 swimmers initially with projected growth to 3,000 competitive athletes. Elected officials were supportive of the project in the developmental stages of the study; however, this support waned as the capital and operating costs of the project became apparent as weighed against other critical capital budget priorities. Each perspective partner was interested and prepared to engage in the partnership should the feasibility study provide a positive result. However, all three municipalities were involved with aquatic developments or redevelopment with in their jurisdictions and other competing capital had already been initiated. Therefore, the timing of the shared 50 metre project was somewhat problematic. Recommendations Recommendation #1. That the 50 metre shared aquatic complex project not be pursued at this time. The community benefits derived from the proposed project would

7 The Corporation of the TOWN OF MILTON Report No.COMS Page No. 7 be insufficient to justify the significant capital expenditure to construct the joint facility. Additionally, the ongoing annual operating subsidy failed to meet the value/benefit test. Recommendation #2 That the perspective partners monitor changes in the local community aquatic requirements and the needs of local aquatic sport clubs to determine if and when market conditions may improve to the extent that the viability of the 50 metre pool project could be re-addressed. Recommendation #3 That the three municipalities work with and support their aquatic sport clubs and where possible, reasonably accommodate their facility and program requirements in new or reconfigured aquatic facilities. Recommendation #4 That the three municipalities use the necessary conditions template to determine the viability of future joint venture projects. Next Steps - Milton Sports Centre (MSC) Expansion Study Process The Consultants (Monteith Brown Planning Consultants, in cooperation with the JF Group, Tucker-Reid and Associates, and MacLennan Jaunkalns Miller Architects) are nearing completion of the study process for the Milton Sports Centre Expansion. A staff workshop was held on February 11 th, 2009, a User Group workshop was held on February 11 th, 2009 and a Public Open House was held on February 24 th, In addition, 112 surveys were sent electronically to stakeholders to gather feedback on this project. Staff held specific input sessions with the Mayor s Youth Advisory Council and youth representatives from the High Schools. The Consultants met directly with YMCA representatives and members of the Facility Planning team for Wilfrid Laurier University. The Consultants are very aware of the MOM Feasibility Study and, as recommended in the Community Services Master Plan, will consider the outcome of this report in relation to the planned aquatic facilities to be built as part of the MSC Expansion. An Open House is planned for Wednesday May 20, 2009 to present the findings of the MSC Expansion Study that will define the recommended Expansion priorities for this facility. The aquatic club representatives (Milton Marlins and Milton Masters) have been involved in the consultation to date and have identified their priorities for the aquatic components. Meetings with specific user groups (aquatics and soccer) are also being planned to present the findings of the MSC Expansion Study directly related to their areas of interest. The consulting team will be providing options through the business case analysis on what could be included in the Expansion, or at another location, and a financial plan

8 The Corporation of the TOWN OF MILTON Report No.COMS Page No. 8 associated with the options for staff and Council consideration. Staff are planning to table the MSC Expansion Study final report and business plan at the June 15 th Community Services Standing Committee meeting. The timeline for this project, pending approval on the Build Canada Funding application, anticipates an immediate Request for Proposal to secure an Architectural team for the design phase, with construction planned to follow immediately. Depending on funding from other sources, the project may be phased to ensure completion of the first phase (ice) by March Staff acknowledges that the findings and recommendations that have come out of the Shared 50m Pool Study are not supportive of a 50m pool project between the 3 municipal partners. For this reason, it should be noted that the possibility of Milton building a 50m pool on its own as part of the MSC Expansion, is not likely going to be a recommendation in terms of the aquatic facilities for this site, given the rationale and analysis that has come out of the shared study. These findings have been monitored by the MSC Consultant team and will be considered as they finalize aquatic elements for the Milton Sports Centre Expansion report to be tabled at the June C/S meeting. Relationship to the Strategic Plan Goal A safe, livable and healthy community Direction Encourage the exploration of all partnership opportunities in the delivery of leisure/community/library services Financial Impact Milton s share of this study process was funded through the previously approved Capital budget for the Milton Sports Centre Expansion study. Respectfully submitted, Jennifer Reynolds Director, Community Services

9 The Corporation of the TOWN OF MILTON Report No.COMS Page No. 9 If you have any questions on the content of this report: Jennifer Reynolds, X2180 Attachments: Schedule A Municipalities of Milton, Mississauga and Oakville - Shared 50m Pool Study CAO Approval:

10 April MUNICIPALITIES OF MILTON, MISSISSAUGA AND OAKVILLE-SHARED 50 METRE POOL STUDY 2009 Aquatic Consultants Incorporated in association with Tucker-Reid & Associates, MacLennan Jaunkalns Miller Architects and the JF Group

11 TABLE OF CONTENTS Executive Summary of Findings and Recommendations... 3 Recommendations... 5 SECTION ONE - STUDY INTRODUCTION, DELIVERABLES AND METHODOLOGY 6 SECTION TWO PLANNING TO PARTNER FOR A SHARED 50M POOL SECTION THREE NEED FOR THE SHARED 50M POOL A Vision for a SHARED 50M Pool SECTION FOUR SITE ANALYSIS, CAPITAL DESIGN AND COSTING SECTION FIVE BUSINESS PLAN Summary Conclusion SECTION SIX NEED AND FEASIBILITY SUMMARY Recommendations Appendix A Proposed Space requirements Appendix B Proposed Capital Cost

12 Executive Summary of Findings and Recommendations The Shared 50 Metre Pool Study was jointly commissioned by the municipalities of Mississauga, Oakville and Milton (MOM) to determine the need and feasibility of a shared 50 metre pool to serve the community aquatic and aquatic sport requirements of the three municipal partners. The concept of a shared 50M pool seemed a reasonable approach based upon the premise that a joint facility would serve a large customer base drawn from a broad catchment area while limiting the collective fiscal burden borne by each of the three municipalities. The research phase of this project included an examination of numerous previous aquatic needs studies including an Aquatic Federation of Canada project which concluded that the aquatic community would benefit if additional competitive pools were to be developed in Ontario. The Shared 50 Metre Pool Study was to consider the findings of previous research as well as consultation with pool users of all three municipalities including competitive swim clubs. Ultimately, the study was to investigate the viability of a joint facility in terms of its ability to meet the tri-municipal current and future aquatic demands compared to the cost of developing and operating the facility. Furthermore, the study was to determine the key characteristics that would be necessary for a partnered facility to be successful. The research phase of the study revealed that Milton and Oakville had latent community aquatic needs that are expected to grow as populations increase within each jurisdiction. Although Mississauga as aquatic needs are met, the City will be required to re-purpose or relocate aging school pools in the future. Aquatic sport clubs in all three municipalities report under-serviced demand and expect their needs will grow as the number of competitive aquatic enthusiasts increase through population growth. Based upon the provision standard suggested by the Aquatic Federation of Canada, the population base of Milton, Mississauga and Oakville would not support a 50M pool until the combined tri-municipal population increases by 25%. This population level is not expected to be achieved for least the next two decades. 3

13 In summary, the thorough needs analysis revealed that the proposed 50 metre pool: would meet all of the current and future program requirements of the aquatic sport clubs in the three municipalities; would not fully meet the current and future community aquatic requirements of residents in Milton and Oakville; and would not eliminate the need to upgrade shared school pools and meet the needs of swimmers in south/east Mississauga. Through several facilitated meetings, the perspective partners agreed that reaching consensus and positive results related to several necessary conditions would be crucial to the development of a successful partnership for the facility. To assist in the analysis and to format the study recommendations related to a viable facility that would be developed and operated using a partnership model, the necessary conditions were employed as the analysis filter. The results of this analysis are presented below. Community Need While the new 50 metre venue would meet the needs of competitive aquatic sport clubs, there is not sufficient evidence that it would meet community aquatic requirements to the extent that each municipality could forgo other planned pool development projects. Location The preferred site is unencumbered by development impediments and would be a destination for competitive swimmers. However, the location is remote from the southern portions of Mississauga and Oakville which could represent a barrier to participation by residents from these municipal regions. Governance, Management and Ownership The perspective partners reached consensus on a mutually agreeable governance, management and ownership model. Mutually Agreeable Space Program The perspective partners agreed that the space program for the aquatic portion of the complex was reasonable and acceptable. However, Oakville and Milton raised concerns regarding the questionable community benefit they would realize from the fitness centre. Capital Cost Sharing Formula The perspective partners reached consensus on a mutually agreeable capital cost sharing formula based on the percentage of the respective municipal population as compared to the total population of the three municipalities. Operating Cost Sharing Formula The perspective partners reached consensus on a mutually agreeable operating cost sharing formula. 4

14 Benefits Based Value Each perspective partner raised concerns about cost of the facility relative to its ability to meet broad community aquatic requirements through equitably distributed aquatic facilities. At issue was a capital cost of $51M and an annual operating subsidy requirement in excess of $1M for a facility largely targeting the requirements of aquatic sport clubs. Although the clubs are an important element in the support mechanism for sport development within the three municipalities, it is difficult to rationalize the value/benefit associated with spending considerable funds to service approximately 1,500 swimmers initially with projected growth to 3,000 competitive athletes over time. Political Support Elected officials were supportive of the project in the developmental stages of the study; however, this support waned as the capital and operating costs of the project became apparent as weighed against other critical capital budget priorities. Readiness Each perspective partner was interested and prepared to engage in the partnership should the feasibility study provide a positive result. However, all three municipalities were involved with aquatic developments or redevelopment with in their jurisdictions and other competing capital had already been initiated. Therefore, the timing of the shared 50 metre project was somewhat problematic. Recommendations Recommendation #1. That the 50 metre shared aquatic complex project not be pursued at this time. The community benefits derived from the proposed project would be insufficient to justify the significant capital expenditure to construct the joint facility. Additionally, the ongoing annual operating subsidy failed to meet the value/benefit test. Recommendation #2 That the perspective partners monitor changes in the local community aquatic requirements and the needs of local aquatic sport clubs to determine if and when market conditions may improve to the extent that the viability of the 50 metre pool project could be re-addressed. Recommendation #3 That the three municipalities work with and support their aquatic sport clubs and where possible, reasonably accommodate their facility and program requirements in new or reconfigured aquatic facilities. Recommendation #4 That the three municipalities use the necessary conditions template to determine the viability of future joint venture projects. 5

15 SECTION ONE - STUDY INTRODUCTION, DELIVERABLES AND METHODOLOGY Introduction Mississauga, Oakville and Milton (MOM) are located in the western part of the greater Toronto Area. Each municipality provides a wide range of recreation and leisure programs and services in response to needs arising from residents within their respective jurisdictions. The department responsible for recreation and leisure in the three municipalities is committed to delivering its programs and services as efficiently and cost effectively as possible. To advance the concept of economic service delivery, the three municipalities have for some time entertained the notion of shared facility development and operations. Recently, discussions have focused particularly on a 50 metre pool complex. Swimming is the second most popular physical activity in Canada. Recreational swimming, learn to swim programs and competitive aquatic training attract millions of Canadian participants annually. The idea of adding a jointly developed 50M pool to the collective aquatic facility inventories of the three municipalities would be intended to provide an appropriate venue to accommodate the wide ranging needs and requirements of all potential pool users from a non swimmer in the lesson program to a high performance athlete in a competitive meet.. Aquatic facilities especially 50 metre pools are very expensive to build and to operate. An examination of existing 50 metre facilities throughout Canada revealed that annual operating deficits of between $1M and $1.5M are not uncommon. The concept of sharing the cost of a 50 metre pool between the three municipalities would reduce the capital and operating obligation for each jurisdiction thereby making possible what would otherwise be unachievable for municipalities on their own. Additionally, the use 6

16 of a new long course pool would be maximized because the facility would draw patrons from all three communities. Mississauga, Milton and Oakville are breaking new ground by examining the potential of a jointly developed and shared use facility. To our knowledge, there are no existing examples of this type of municipal undertaking in Ontario. Consequently, should the feasibility and execution be of this facility be successful, it could serve as a useful case study or sample for others to follow and/or improve upon in the future Study Deliverables and Methodology The Councils of Mississauga, Milton and Oakville authorized a feasibility study to determine the need for a shared 50M pool to serve the three municipalities. The project was undertaken by Aquatic Consultants Incorporated in association with Tucker-Reid + Associates, MacLennan, Jaunkalns,. The deliverables of the study included; Documentation on the feasibility of the 50M aquatic facility including aquatic sport growth, demographics, existing pool use, projections for new pools and the implications of a shared 50M pool on the existing pool supply. Input from the aquatic stakeholder groups as to their needs, growth projections and design considerations. The analysis, review and recommendation of a site for the 50M pool. The articulation of the operating budget impacts over the course of the first five years of operation. A recommended pool administrative structure complete with full-time staffing levels. A recommended governance structure that could support shared operations, the principles of equity and excellence in aquatic sport development. Study Methodology Determining the collective need for the complex and projecting the feasibility of a shared 50 metre pool involved examining the interconnection of numerous complex factors. The consultants initially examined the aquatic needs of three municipalities including opportunities to expand program inventories should a 50 metre complex be available to 7

17 aquatic groups. The project also called for an investigation into the optimum location for the complex, a forward thinking design concept, capital cost estimates and capital contribution formula, operating cost projections and operating cost sharing formula as well as and a governance and management structure that was acceptable to the three municipal partners. The consultant team s work program to address these requirements is presented in the following table. Step 1 - Review of all Background Materials All national, provincial and municipally related reports and initiatives, municipal demographics and growth projections, master plans for the three operating departments, operating and capital costs for like pool structures in Canada, governance structures and potential partnerships. Step 2 - Development of a Vision and Guiding Principles, A vision for the purpose of the 50M pool, guiding principles were developed to set the course and keep a clear focus on what the facility would contribute to both the communities at large and the support and development of aquatic sports in Ontario Step 3 Public and Stakeholder Consultation The three municipal master plans for recreation and parks facilities, programs and services had involved considerable public and stakeholder consultation; complete with focus groups, public meetings, community search conferences and household opinion surveys. This comprehensive data was utilized to gauge the support of aquatics and the need for additional pools. A meeting was held with the aquatic sport providers and the sport councils from the three municipalities to discuss a vision, the need for the facility, sport development, design considerations, governance models and to provide advice to the steering committee and municipal councils. Each of the 8 aquatic sport executives received and submitted a survey which spoke to growth projections, existing and future need for pool time anticipated number of competitions required annually and the receptiveness to 50M pool rental fees Step 4 Development of Site Options and Identification of the Preferred Location This stage involved the determination of potential land and sites owned by the three municipalities, the development of mandatory and preferred site evaluation criteria, the short listing of sites meeting the mandatory site criteria and the application of preferred site selection criteria to the short listed sites. A recommended site was determined utilizing this process. 8

18 Step 5- Development of the Facility Capital Space Program and Capital Cost Estimate Based on the discussion with key opinion leaders, other field experts, 50 metre pool operators and the steering committee a pool space program and high level conceptual design was developed. The consulting and steering committee weighed the needs of the competitive aquatic sport groups, community needs and the principle of long term fiscal sustainability in its recommended program. The capital cost estimates are in 2008 dollars. Step 6 Pool Program, Administrative and Governance Models and Respective Operating Costs A pool program was developed based on the capital space program, and through the scheduling of appropriate programs and aquatic opportunities over the course of a year of operation. An administrative model was built to ensure adequate supervision, maintenance standards and the safe operation of the facility meeting all legislative requirements. A Governance model was developed to ensure the facility respects shared operations, and the skills and competencies are present to oversee the operations. An operating budget was developed considering all of the operational, program, administrative and governance requirements. Further private, public partnerships, alternate revenue streams are also recommended. Step 7 - Draft Report Development The draft report includes a summary of background information, the development of criteria or ideal conditions regarding a shared use facility, the results of the stakeholder opinion survey and consultations, a recommendation with respect to location, design, ancillary components capital costs, and operating pro forma. Step 8 - Input on Draft Report, Finalize the report The draft report was circulated to the Steering Committee for comment and suggested changes were requested. 9

19 SECTION TWO PLANNING TO PARTNER FOR A SHARED 50M POOL Fundamentals of a Relationship Model for a Shared facility Municipalities throughout Ontario indeed across Canada are the primary providers of publicly accessible aquatic facilities. Municipal pools accommodate a host of community services and programs such as learn to swim, aqua-fitness, lap swimming and training, recreational swimming and competitive events. In most jurisdictions pools are perceived by the general public as important and valuable assets that offer health and wellness benefits to local residents while contributing to the social fabric of neighbourhoods and communities. The universality of water based activities coupled with the programmatic diversity of aquatic facilities means that pools are well equipped to meet the current and evolving needs of a variety of different groups and individuals. In 2006, Parks and Recreation Ontario completed a sport and recreation facility study that reported over half of municipal pools in the province were between years old. The age of these facilities implies the need for substantial capital spending for maintenance, repair and upgrades. Furthermore, pool designs have improved significantly in the past 25 years. Leisure pools or multi-purpose pools including leisure components within the same aquatic space as rectangular tanks have become the norm in the past two decades. Leisure features improve the recreational experience of pool patrons, which in turn increases consumer appeal. Consequently, modern pool designs almost always incorporate a combination of traditional and leisure facility components. Pools are expensive to build and generally recover only a portion of their operating costs through user fees. To contain these costs, many municipalities are investigating new and creative methods to develop and run aquatic centres. In certain circumstances, partnerships or joint ventures have been heralded as reasonable alternative service delivery approaches through which economies of scale and operating efficiencies can be realized. In essence, this was the basis for Mississauga, Oakville and Milton to begin investigating the opportunities that would be available through a jointly developed and operated 50 metre pool complex. 10

20 The shared complex would be intended to effectively and economically address the collective community aquatic requirements of MOM while expanding each municipality s level of service through the provision of a new facility capable of accommodating highperformance training and competitive aquatic events. Furthermore, the joint venture could result in the provision of a significant aquatic facility that would likely be unaffordable by any one of the municipalities on its own. The process to evaluate the feasibility of the MOM 50M aquatic complex involved considerable research and public consultation to ensure that the eventual facility recommendations would be capable of meeting community needs while remaining within an envelope of reasonable financial affordability. Recognizing that the building program must respond to the program and service requirements of constituents from all three municipalities, the study s consultants and Committee members met with the vast array of user groups and stakeholders from all three municipalities. Research also included discussions with operators of other comparable 50M aquatic complexes across Canada. Not surprisingly, the fact finding process required a delicate balance of facility expectations and programmatic requests brought forward throughout community consultation with the financial realities of building and operating a significant aquatic facility. Furthermore, the advice of recreation professionals who are currently operating similar facilities offered useful counsel regarding the balance between creating a facility that truly meets the needs of broad target audiences while - as much as possible - containing ongoing annual subsidy requirements. Coincidental to the feasibility analysis, senior municipal officials discussed frameworks that would determine the nature of the joint venture, the ownership model for the facility and operating considerations. The results of these discussions are summarized below. Necessary Conditions for a Successful Joint Venture Relationship The three participating municipalities have each had experience in dealing with outside organizations in an effort to create relationships through which effective recreation service delivery can be achieved. These experiences were helpful in identifying issues that would likely influence the success of a partnership for a shared 50 metre pool. Early in the planning phase of the study, municipal representatives identified major considerations for which a mutually agreeable solution would be essential to the success of the project. Consequently, it was agreed that the partnership for the shared 11

21 long course pool would only be pursued if the municipal partners reached conscientious on the necessary conditions associated with the project. As the deliberations evolved, it became apparent that these elements represented conditions that would be necessary for any type of joint venture to be successful. As such, senior officials agreed that the list of necessary conditions could act as a template for the pursuit of other types of joint venture projects in the future. A brief description of each of the necessary conditions is presented below. Community Need - the project or service will meet a demonstrated community need that is consistent with each partner s facility provision standard or service delivery priority. Location the project will be located on a site that is unencumbered by development impediments and that is reasonably accessible to the targeted users of the facility. The perspective partners will jointly execute a detailed site evaluation and selection process. Governance, Management and Ownership the perspective partners will agree on a governance structure, ownership arrangement and management model for the joint project. It is recognized that governance, ownership and management matters will be dependant on the specifics of each project and therefore must be resolved on a case by case basis. Mutually Agreeable Space Program the facility components and space program of the project will respond to the community needs identified by and for each perspective partner. Capital Cost Sharing Formula perspective partners will agree on a fair and equitable capital cost sharing arrangement. Where possible, the partners will also pursue other funding opportunities including contributions from senior levels of government, involvement by non-government partners including investments by community organizations or the private sector. Operating Cost Sharing Formula the operating and capital maintenance costs of the project will be projected through the development of a comprehensive business plan. The perspective partners will agree on a fair and equitable cost sharing arrangement that is commensurate with each partner s participation threshold that would be developed for each project type. Examples of thresholds would be a partner s allocated hours of use, number of users from the municipality, etc. It was agreed that the operating cost sharing formula could be adjusted from time to time throughout the course of the arrangement. 12

22 Benefits Based Value the project will provide value to each perspective partner, based upon the benefits it provides to respective municipalities. Depending upon the project, value judgments could involve cost/benefit decisions, assessments of municipal affordability, cost avoidance for related services, etc. Political Support elected officials from each municipality will recognize the merits and value of the relationship and support the principles of the joint venture and practical elements of the partnership. Readiness the timing of the project, the capital and operating cost obligations, implications related to community planning, etc. are consistent with each partners readiness to become engaged in the relationship. Municipal officials agreed that the preceding necessary conditions would be reviewed following the completion of the feasibility study to determine if the shared, joint venture project was a viable partnership opportunity. Governance Model for Consideration and Ow ners hi p Str uc t ure After much discussion, it was agreed that the aquatic complex could be governed by a sole purpose Not-For-Profit Corporation (N-F-P Corp). The N-F-P Corp would be comprised of three partners: the City of Mississauga, the Town of Oakville and the Town of Milton. Each Partner would have a share in the ownership of the corporation. The size of each share would be based upon each municipality s proportionate capital contribution to the project. The N-F-P Corp would be responsible for the management and operations of the complex. The Corporation would be subject to all federal legislation, provincial statutes and municipal by-laws that govern not-for-profit organizations in Ontario. The N-F-P Corp would be governed by a Board of Management comprised of Directors with a proportionate number of Directors elected or appointed by each municipality. It was decided that the number of Board positions be capped at either seven or nine members to allow for flexibility in achieving a quorum at Board meetings while avoiding an entity that is too unwieldy because of size. Each municipality would appoint its Directors using an appointment process deemed appropriate by the municipality. Directors would serve a maximum two, two year terms that are staggered so that new Board appointments could be made each year. A Board Chair would be elected by the Directors from their numbers. 13

23 In carrying out their Board duties, Directors should be clear that the interests of the aquatic complex should be their main priority, rather than the interests of the municipality that appointed them to the Board. The Board will appoint a three member Executive Committee responsible for undertaking the Board s decisions and dealing with operational matters of the complex. In general terms, the Executive Committee will ensure that the complex s day-to-day performance is consistent with the expectations of facility patrons while remaining in accordance with the policies, standards, procedures and practices articulated in the annual operational and financial plans that will be approved each year by the Board. In view of the Executive Committee s important contribution to the performance of the complex, Committee members should be appointed based upon their interest and competence in areas likely to influence the aquatic centre s success i.e. finance, property management, customer service, etc. As such, Executive Committee members could be selected from outside of the Board ranks. It may be appropriate that the Executive Committee be made up of senior municipal staff. A constitution will set out the organizational details of the N-F-P Corp. Specifically, the constitution will describe the purpose of the organization, the Board structure, voting rights, Board responsibilities, Executive Committee responsibilities, the role of the external advisors and contractors, specifics regarding Board meetings and quorum requirements and other relevant matters related to the Governance of the complex. The Board would contract the services of an outside entity to operate the facility. It is anticipated that the Board would utilize a Request for Proposal process to select the contract operator. The operator could come from the private sector (a professional recreation management company), the not-for-profit sector (the YMCA), or the public sector (one of the three partner municipalities). The contractor would be responsible for all staffing, maintenance, scheduling, programming and financial matters associated with the operations of the complex. Land and Facility Ownership The City of Mississauga will own the lands upon which the complex would be located. The N-F-P will own the building and its assets and would be responsible for its operational and capital maintenance costs. The N-F-P Corp would enter into a longterm lease with Mississauga for the land related to the complex. 14

24 Guiding Principles The partners agreed that the following principles would guide decisions related to the capital and operating cost sharing of the facility as well as the program schedules, allocations and other facility use standards. The complex would be designed and developed for its end use to meet community sport, recreation and leisure requirements and will be adaptable to international competitive standards. Components included in the facility s building program would be selected so the complex is capable of accommodating a broad variety of sport, recreation and leisure endeavors. Additionally, elements may be included to generate positive revenue to assist in the financial performance of the complex. The aquatic facility and its supporting elements would be accessible to ablebodied and physically challenged individuals. Fairness and equity would underpin all decisions related facility access, program design and the manner in which elements of the complex are allocated to users or groups of users from each municipality. An integrated program model would be utilized to maximize the operating efficiency and use of the facility. This model would encourage and/or schedule simultaneous use by individuals and groups from across all three municipalities rather than dedicating time for exclusive use to patrons from any one jurisdiction. The integrated program model would be supported by a mechanism to track the proportion of facility use by individuals from each community to ensure that the fairness and equity principle is upheld. Each municipality s proportionate share of the combined tri-municipal population would be utilized as a standard method to determine an appropriate capital and operating cost sharing formula. The facility would conform to traditional municipal public recreation service philosophies including the principles of accessibility and affordability. The complex would align with and support the recreation service mandates and principles of the three municipalities. Where appropriate and possible, the facility s services and programs would enhance the collective mandates of the municipalities and would augment complementary initiatives such as healthy communities programs, physical activity strategies, etc. 15

25 Capital Financing Structure In accordance with the preceding guiding principles, the municipalities agreed that proportionate population would be the main determinant in the capital cost sharing formula for the new facility. According to a 2006 Parks and Recreation Ontario Sport and Recreation Inventory Study, the average useful life of an aquatic complex is 40 years. Recognizing that a municipal contribution to the capital cost of the facility represents an investment in future sport and recreation opportunities, representatives of MOM agreed to utilize projected population levels as of 20 years from completion of the facility to calculate each municipality s capital contribution to the project. Therefore, assuming that the facility was to open in 2014, population estimates for 2034 would be used as the basis for the capital cost sharing formula. Municipal representatives also suggested the following funding considerations be included in a Memorandum of Understanding. The capital cost of facilities included in the project for the specific purpose of generating positive revenue to help the financial performance of the complex would be considered a project cost and would be a mutual responsibility using the cost sharing formula. The capital cost of facility elements developed as part of the complex that are intended to meet the sole requirements of a single municipality will be borne by that municipality. The other project participants would be able to gain preferential access to these facilities on a fee for service basis. Each municipality would determine the most appropriate source of funds to contribute to the capital cost of the project. Options could include development charges (for growth related aspects of the project), the allocation of cash from reserves or the issuance of debt. 16

26 Costs associated with each municipality s capital contribution such as the cost of servicing debt would be the responsibility of the subject municipality. Any non-cash conveyance to the project by a municipality would be taken into account on the basis of fair market value and be considered as part of the municipality s capital contribution. Operating Structure and Cost Obligations As discussed earlier, through the implementation of a Request for Proposal process, a contractor would be selected to operate the complex. The N-F-P Corp would enter into a service agreement with the selected operator. The agreement would outline the rights and obligations of the N-F-P Corp (such as approvals, setting of rates and fees, etc.), the operator s responsibilities, contractor s incentives, standards of performance, the contract term, operating and maintenance requirements, events of default, default remedies, mechanisms for dispute resolution, etc. On an annual basis, the operator would develop for Board approval, a proposed business plan laying out an operating strategy, programming model and budget for the aquatic complex. Each year, the operator would update, revise and adjust the business plan and associated operating and financial plans in accordance with Board direction, the needs of the facility s patrons, the local environment, programming desired by the three municipalities, and other factors that should dictate the approach to meeting the service objectives of the complex. As a matter of negotiation with the operator, the N-F-P Corp could propose that the contractor share in certain operating, maintenance, and financial risks associated with the complex. The N-F-P Corp would be responsible for the financial liabilities of the complex. The municipalities agreed that proportionate population will be the main determinant in the operating cost sharing formula. The provisions of the proposed relationship related to the facility s operations would be as follows. By virtue of their ownership position in the Not-For-Profit Corporation, the three municipalities would be responsible to subsidize the operating costs of the complex on an annual basis. The operating cost sharing formula would be based on each municipality s proportionate share of the combined tri-municipal population. Recognizing that the relative proportion of the tri-municipal 17

27 population will shift over time due to differing rates of municipal growth - the formula would include an adjustment mechanism so that each municipality s proportionate share of the required subsidy would accurately reflect its proportion of the tri-municipal population at any point in time. The formula would be adjusted every 5 years. Population data provided by each municipality would be used as the basis for adjustments to the formula. In an effort to maximize the use of all aspects of complex, the operator would employ an integrated operating and scheduling model through which users from the three municipalities will simultaneously use the facilities. However, the operator would also track the use of the facility by patrons from each municipality in order to ensure that the principle of fair and equitable access to the complex is upheld. The agreement between municipalities will include provisions that allow for adjustments to the scheduling approach employed by the complex and/or the cost sharing formula, should the use profile of the complex be skewed in the favour of one or more municipalities. The operating budget of the complex would include a mandatory capital reserve contribution. The municipalities would agree on a mechanism through which capital reserve funds will be systematically expended to ensure that the facility is well maintained. Additionally, capital reserve funds would be used to periodically retrofit aspects of the complex in response to evolving consumer requirements or community recreational needs. The aquatic complex and associated facilities would be considered an independent operating entity. As such, the operating budget and accounts of the facility would be separate and segregated from the budgets and accounts of the participating municipalities Municipalities that provide services to the benefit of the complex would be compensated on a fee for service basis The operating cost of facility elements developed as part of the complex that would be intended to meet the sole needs of a municipality will be borne by that municipality. Fees paid by other municipalities to gain access to the facilities would be used to offset the specific costs related to the subject facilities. 18

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29 SECTION THREE NEED FOR THE SHARED 50M POOL The Need for 50 Metre Pools in Ontario The Aquatic Federation of Canada (AFC) in concert with the Canadian Parks and Recreation Association (CPRA) commissioned a study in 2007 to determine the current supply and demand for 50 metre+ long course pools in Ontario. The study was entitled Ontario Aquatic Facilities Needs Analysis and Strategy and was completed by the Sutcliffe Group in association with Professional Environmental Recreational Consultants (PERC). Certain aspects of the AFC report represent useful background information to this feasibility analysis. Furthermore, the research and environmental scan undertaken by AFC helps to strategically determine an appropriate position and future direction of a major aquatic facility developed by Mississauga, Oakville and Milton. AFC developed a vision for aquatics in Ontario that supports integrating swimming and other related activities into the broader context of leisure service delivery and community development. Interestingly, this vision directly parallels the recreation and leisure service philosophies that are articulated in the recreation and community services master plans of the recreation departments in the three participating municipalities. AFC s Vision for Aquatics in Ontario Ontario will be a global leader in swimming and its related activities, strengthening communities and improving the quality of life for all by providing opportunities for safe enjoyment of the water through fitness, health and personal excellence up to and including international sport. Among other findings, the AFC report concluded; There are seven major categories of aquatic uses: recreational swimming, skill development (learn to swim), leadership training, sport training and fitness, rehabilitation, therapeutic uses and hosting events. Ontario provides an adequate level of service in: recreational swimming, skills development, fitness and leadership training. 20

30 Ontario s level of service is inadequate in: sport training events, therapeutic uses and rehabilitation, although therapeutic uses have been improving as a number of leisure pools have been constructed or existing pools refurbished. Generally, there is a lack of deep water suitable for diving, synchronized swimming and water polo and a lack of facilities able to accommodate needs of competitive organizations There is a dearth of long course (50m+) and competition level pools (where national and international competitive meets can be held) in Ontario. Anticipated population growth and ageing facilities suggest the need for pools of all sizes will not decline and therapeutic/ rehabilitative uses requirements will increase. 21

31 The Ontario Aquatic Sport Council The AFC study resulted in the formation of the Ontario Aquatic Sport Council (OASC) to implement some of the study s recommendations. The OASC is accommodated in Toronto at the Ontario Branch Offices of the Lifesaving Society. The Ontario Aquatic Sport Council s mandate will be to advocate and strategize for equitable distribution and development of competitive and community long course 50M pools in Ontario. While the Council is in its infancy; funding has been approved to develop an action plan to further 50M pool facility development within the province. Related Federal and Provincial Initiatives The Canadian Sport Policy The Canadian Sport Policy was developed in 2002 to create and work strategically toward a national vision for the improvement of physical activity and participation and development in sport. The policy was developed through significant collaboration and consultation with sport representatives, governments, associations and leaders from the 14 federal government provinces and territories. The policy speaks to the full continuum of the sport delivery system in Canada from the entry level to the elite level or Pond to Podium or Playground to Podium models. Goals of the policy relate to; Enhanced Participation higher proportion of Canadians involved in sport Enhanced Excellence pool of talented athletes has expanded and are achieving world class results Enhanced Capacity ethically based, athlete/participant development systems are in place, modernized and strengthened Enhanced Interaction sport system is more connected and coordinated as a result collaboration and communications 22

32 Aspects of the Canadian Sport Policy that are specifically relevant to a shared 50M long course pool in Milton, Mississauga and Oakville are; Ensuring that the components of a sport delivery system; coach/instructor education, facilities, sport medicine, sport science, research and the use of technology meet the needs of athletes/participants Developing a strategic approach to hosting major national and international events to maximize the contribution to sport and community objectives Developing volunteer and paid leadership and organizations at all levels to strengthen the sport system Developing a sustainable and diversified public and private resource base for the ongoing development of sport Source: The Canadian Sport Policy Given that the 50 metre pool portion of the project will be primarily used for training aquatic athletes and hosting competitive swimming events, it will be important that the potential MOM facility remain consistent with the philosophical approach and fundamental principles of the Canadian Sport Policy. Ontario s Active 2010 Initiative In response to increasing rates of inactivity and obesity, the Province of Ontario has developed Active 2010 which is a plan setting about to increase the level, duration and intensity of fitness activity and active lifestyles of Ontarians. The Ontario government has proactively responded to the alarming rates of physical inactivity and obesity and the resultant increase in diabetes type2, heart disease and some forms of cancer. The Community in Action Fund provides grants to communities and organizations to develop sport and physical activity plans as well as to provide funding for activity enhancing programs. The design and program model of the shared complex should support the objectives of Active 2010 to position the facility in order that it could take advantage of resources available through the Community in Action Fund. 23

33 Long Term Athlete Development The Canadian Sport for Life movement has developed the Long Term Athlete Development Program (LTAD) which highlights the values and benefits of sport to both the individual and the community at large. The program describes a continuum of sport development which is athlete centred and moves a participant/athlete through the stages from participant to elite athlete and on to adopting an active lifestyle throughout ones life. The continuum delivers on best practices, sport research and is based on principles that emphasize ethics, fun and appropriate age and cognitive related development. The LTAD program provides resources and a speakers program and relies on implementation at the provincial and community levels. There is clear alignment with the goals of the Canadian Sport Policy and Active 2010 and will be most successful when a collective of participants, parents, educators, health experts and stakeholders are involved. The continuum of long term athlete/participant development includes; Source: Canadian Sport for Life and the Long Term Athlete Development Materials Collaboration at a national, provincial and local level will be a prerequisite for increasing the amount of daily physical activity and aquatic sport participation by Canadians. There is broad consensus that one of the key tools in achieving these important physical activity and sport goals will be through the efforts of local champions who will be both role models and advocates for the physical activity and sport cause. In accordance with the focus of the LTAD Program and the broad universal desire for a healthier and more physically active population, the 50 metre pool project should be positioned as a significant factor in increasing the competencies, athlete and participant development and fitness levels of the residents of Mississauga, Milton and Oakville. Additionally, the facility can form a bridge between national and provincial initiatives 24

34 such as LTAD Program and the fundamental principles that underpin the local sport and recreation delivery system in the three municipalities. Aquatic Service Delivery Trends The physical design and program schedule of the proposed 50 metre long course pool should be guided by the most current and progressive trends influencing the aquatic sector in general and the specific delivery of local aquatic services. This information can be accessed through a variety of national and provincial organizations that track and analyze important facts, operating examples and programming experiences of aquatic professionals throughout Canada and abroad. The Aquatic Branch of Parks and Recreation Ontario is one such source of valuable information. Presented below is a sample of the sort of issues that the developers of the proposed facility should consider. Learn to Swim Continuum Learning to swim at an early age provides familiarity in and around water, fitness opportunities and ensures that children will enjoy a lifetime of safe aquatic activity. It is vital that that children understand that aquatic activity is a life skill and that being safe in and around water will prevent water accidents including drowning. The Red Cross Society and the Lifesaving Society have recently developed and revised their respective learn to swim continuum. The programs provide a choice of delivery models and many municipalities circulate a request for proposal to learn to swim providers to ensure that the residents receive quality programming at a competitive cost. Swim to Survive The Lifesaving Society Ontario Branch has developed a program to reduce water incidents and drowning in Canada. The techniques can be taught in a few lessons and teaches participants how to swim and survive if a person falls into deep water. The program was developed to introduce children who have not taken swim lessons self survival techniques. Many municipalities are working collectively with school boards to introduce children to the swim to survive program. The Lifesaving Society has received government grants and funding from foundations to assist in subsidizing the program. 25

35 Leadership Training & PRO High 5 Principles of Healthy Child Development Parks and Recreation Ontario (PRO) has developed a quality assurance model in the delivery of recreation programs and services to children. The model focuses on the principles of healthy child development and provides a training module delivered by qualified trainers across Ontario. Both the Lifesaving Society and the Red Cross Society have developed agreements with PRO High 5 to include training on the principles of healthy child development into their instructor training courses. This will ensure that instructors are using child friendly and age appropriate techniques as well as safe and enjoyable teaching methodologies. Water Incident Research Alliance The Water Incident Research Alliance (WIRA) works in close association with agencies, organizations and municipalities that have a common interest in water incident and drowning prevention. WIRA has the capacity to collect incident and drowning data across Canada and summarize causes, age groups and incident circumstances. Organizations use the WIRA data and findings to develop prevention messaging and programs to assist in the accident prevention. Municipalities and service providers can also track all incidents, causes and improvements made possible through preventative programs and initiatives by using the WIRA program in risk management software program. Swimmers with a Disability (SWAD) Swimmers with a Disability Canada, in association with Swim Canada supports persons with disabilities achieve their person best in training and in aquatic competitions. Swimmer opportunities are classified as either for the Blind or Functional disabilities and ensure that there are equitable competitions for both classifications. SWAD assists swimmers in finding local clubs and offers training in long term athlete development, official certification and coaching certification programs. Source Swim Canada Resource Materials Lifeguard Clubs and Competitions The Lifesaving Society has recently introduced the Junior Lifeguard Club. The clubs focus on enjoyment and skill development in community education, leadership and teamwork, lifesaving knowledge, lifesaving skills, swimming ability, fitness and 26

36 competition. Participants can improve their abilities, earn awards, volunteer and compete in lifeguard competitions. Many service providers find the club setting supports youth endeavors and facilitates youth finding meaningful employment within the aquatics field. Triathlon Clubs and Training Triathletes require access to pool time to train for the swimming portion of their sport - that also involves cycling and running. Several private and public sports venues have created triathlon clubs in order that club members have the opportunity of training for all three sports in one location. Masters Swim Clubs Swimming is popular among baby boomers and hence there is growing participation in Masters Swim Clubs. Recreation professionals expect that as the general population ages, the number of masters swimmers will climb. Masters clubs attract individuals over 25 years of age that are interested in improving their fitness levels as well as participating in a socially supportive group of like minded individuals. Masters Swim Ontario facilitates training opportunities and education. The organization s Web site helps swimmers track their progress over time. Therapeutic Pools An increasing number of municipalities are including therapeutic pools within the design concept of public aquatic centres. This trend is primarily linked to the need to provide services for the aging population. However, in certain jurisdictions, warm water pools are used by all age segments of the community for therapeutic exercise, flexibility training or relaxation purposes. Need for a Shared 50M Long Course Pool The Current Supply of Publically Owned/Operated Long Course Pools in the Greater Toronto Area The selection of public long course pools is quite limited for the competitive aquatic sports clubs in Milton, Mississauga and Oakville. As demonstrated in the following table, the closest 50M pools are a minimum of 45 minutes to an hour travel time from most communities in the three municipalities. Exacerbating the situation, prime pool time in these facilities is reserved for residents and aquatic groups from within the boundaries of the municipality that owns the facility thereby relegating nonresident 27

37 groups to non prime time hours. Additionally, nonresidents are generally required to pay incrementally higher fees, increasing the cost to utilize the long-course facility. Municipal Indoor 50m Pool Location Etobicoke Olympium Toronto (west) Wayne Gretzky Pool (65M) Brantford Douglas Snow Pool Toronto (north/central) Canada Games Pool London Victor Davis Pool Guelph GTA- University 50M Pools Toronto Toronto Brock St. Catharines Laurier Waterloo McMaster Hamilton Western London Population Growth in Milton, Mississauga and Oakville A significant factor that determines the need for and feasibility of an indoor long course pool is the size of the residential population that the facility is to serve. Because swimming is one of the most popular physical activities in Canada, population growth in the general vicinity of a proposed facility will usually result in an increase in the number of users that will frequent the pool. The following table demonstrates that the current combined population of the participating municipalities is almost 900,000. From a future needs perspective, it is important to note that the combined population is expected to 28

38 grow by more than 250,000 residents over the next 25 years (by 2031) topping out at almost 1.150M individuals,- representing a 32% increase in the total population. Municipality Current Projected 2031 Population % Increase Population Increase Milton 75, , ,000 96% Mississauga 650, , ,600 15% Oakville 165, ,000 84, % Total 890,600. 1,147, ,000 32% Source Best Planning Estimates Document 2007 One measure to determine the need for a new aquatic facility is a pool provision standard based on population. AFC s Ontario Aquatic Facilities Needs Analysis and Strategy suggests that a reasonable standard is a ratio of 1 long course pool for every 1.125m residents. Assuming that the AFC standard is reliable, there would only be sufficient aquatic patrons in Mississauga, Oakville and Milton to support the proposed long course pool after the combined population of the municipalities climbed by 225,000 residents - a 25% increase over current levels. According to population projections provided by the municipal planning departments, this growth in residents is not expected to be fully realized until at least 20 years. 29

39 Current Municipal Pool Supply and Recommended Development The three municipalities have master plans that set out the respective needs for recreation and parks facilities, programs and services. Each master plan has been developed utilizing sound and consistent planning practices including comprehensive public consultation, supply/demand calculations, trend tracking, etc. The following table demonstrates the current supply of indoor pools and the number of additional pools that have been recommended by the master plans. Municipality 25 M Indoor Pool Provision Standard Current # of Pools Additional Pools Recommended for Future Development Total Milton 1 Pool to 35,000 Population Mississauga 1 Pool to 65,000 population Oakville 1 pool to 35,000population Total Master Plans- Findings and Recommendations Indoor Pools The recommendations with respect to the future provision of indoor pools In Milton, Mississauga and Oakville are listed as follows; Milton Community Services Master Plan Recommendation Indoor Pools The local swim team has expressed a desire for the development of a 50m pool that meets high performance standards. The Master Plan does not find sufficient demand or the financial viability to support such a facility. Unless the Town decides to make it a strategic priority to provide elite-level competition, and training facilities as part of its overall corporate mandate, the Department should continue to focus on provision of services that best meet community need for the average household. It should also be noted that the City of Mississauga is studying the development of a 50-metre pool to serve the regional market, including the Town of Milton and the Town of Oakville. Action 30

40 Undertake a feasibility study to determine the facility component requirements for the design of an indoor pool proposed for the Milton Sports Centre. Indoor aquatics should be included in the facility s expansion, scheduled for the year Mississauga Parks and Recreation Master Plan Recommendation Indoor Pools A provision standard of one pool to 65,000 residents is recommended. This standard does not necessitate the need for an additional 25 metre pool before Action: It is imperative that the City continue to upgrade its existing facilities in order to meet the needs of the changing demographics. Oakville Parks, Recreation and Culture Master Plan Recommendation Indoor Pools Action: Develop an indoor aquatic facility at the proposed community centre in the north planning area (to be constructed by 2016). If possible this facility should include both leisure (hybrid) and Lane (competitive) pool elements. An Olympic style 50 metre pool is a regional type facility and is not recommended as a Town built and operated facility at this time. In summary, the municipalities of Milton and Oakville have the construction of 2 additional 25M pools recommended to meet the community needs for aquatics. Mississauga has no need for additional pools but a need to upgrade the municipally owned and operated pools and to reconfigure the existing supply of school board owned and operated pools. There may be an opportunity to develop a 50M pool as part of the 3 communities inventory, consider a leisure design only for the 2 recommended pools in Milton and Oakville and continue to upgrade/reconfigure the existing pool inventory in Mississauga. Source: Master Plans for Milton, Mississauga and Oakville Monteith Brown Planning Consultants Current Pool Capacity and Usage - Prime Time Hours 31

41 The combined utilization of the existing MOM pool inventory is an important factor that will influence the demand for pool time in a shared 50M long course facility. The following table demonstrates the use of the MOM pools during prime time hours (Monday through Friday 5:00 p.m. to 10:00 p.m., Saturdays from 8:00 a.m. 8:00 p.m. and Sundays from 9:00 a.m. 6:00 p.m.). Municipality # of prime time hours/year (all pools) # of prime hours utilized (all pools) % of use Milton (2) 4,600 4, % Mississauga (11) 25,300 21,505 85% Oakville (5) 11,500 11, % Total 41,400 37,605 91% A VISION FOR A SHARED 50M POOL The municipalities of Milton, Mississauga and Oakville consider a shared aquatic centre of excellence for all residents and visitors which serves to; Promote aquatic sports and provide a full continuum of opportunities for participants and long term athlete development Provide an opportunity for residents to enjoy water experiences and to increase community cohesion and pride Increase the number of residents involved in daily physical activity and leading active lifestyles Work with all related partners to be the centre of aquatic excellence in southern Ontario and have the ability to host regional, and national competitions Work to ensure that underrepresented groups have full access to programs and services Consider the effectiveness and efficiencies of public-public and public- private partnerships in the delivery of recreation services Provide education and skill development to decrease the number of water incidents and drowning in Ontario 32

42 Benefits of Aquatic and Ancillary Facilities Swimming is the second most popular physical activity behind soccer in Canada today. Aquatic activities have always been important to Canadians because of the proximity of so many bodies of water as well as the fact that swimming is universally accessible to all ages and abilities. Learn To Swim and Reduction of Water Incidents Learning to swim at an early age provides familiarity in and around water, fitness opportunities and ensures that children will enjoy a lifetime of safe aquatic activity. Importantly, children learn that aquatic activity is a life skill and being safe in and around water will prevent water accidents including drowning. Reducing Inactivity and Obesity Swimming can assist residents in becoming more fit and reducing the alarming rates of inactivity and obesity. Becoming more active will assist in reducing increases in heart disease, type 2 diabetes and certain forms of cancer. Supporting a Strong Sport Delivery System Pools provide infrastructure to support aquatic sport development. Competitive swimming, waterpolo, synchronized swimming and diving are included within the aquatic sport development model. Opportunities to develop the skills required for these sports could occur locally with the introduction of the proposed MOM pool. There s a strong connection between the availability of local infrastructure and improved performance by local athletes. Community Spirit and Cohesion Attending and volunteering for aquatic sport meets add to a sense of community spirit, pride and cohesion. Residents can be proud of local community facilities supporting local teams promotes community pride. 33

43 Strengthening Families and Groups Aquatic programs welcome families and groups. Enjoying the water and having fun alleviates day to day pressures and lends to greater cohesion and strengthening of the family unit and community groups. All Ages All Stages - All Abilities Aquatics serve all ages and abilities and promotes safely in and around water. Aquatics activities are accessible, affordable and enjoyable for all. Stakeholder Group Input The aquatic sport organizations from the three municipalities include; - Gatquatic Divers Club - Mississauga Aquatic Club - Mississauga Synchronized Swimming Association - Mississauga Masters - Milton Marlin Swim Team - Milton Masters Aquatic Club - Dolphins Swim Club (Oakville) - Oakville Aquatic Club - Oakville Masters Swim Club The 9 aquatic sport organizations that represent over 1,500 participants and athletes had three opportunities to provide input to inform the study. Each group was invited to attend a stakeholder meeting specifically designed to capture their thoughts on the need for the new complex, design features and the operations of a 50 metre shared pool. Groups were also invited to respond to a survey to capture the aquatic stakeholder s comments on the shared use of the 50 metre pool. Finally, aquatic groups were 34

44 encouraged to submit position papers describing their vision for the design, use and operations of the facility. Current and Future Aquatic Club Membership Numbers Aquatic sport clubs would anticipate an increase in their membership registration levels over the next decade if a 50M pool were built. Club representatives suggest that a 50M competitive facility would enable the groups to absorb existing pent up demand. The new pool would also satisfy the increase in pool time necessitated by membership growth and expand the clubs growth potential based on the appeal of a long course venue. Aquatic Club % Increase Gatquatic Divers Club % Mississauga Aquatic Club % Mississauga Synchro % Mississauga Masters Swim Club % Milton Marlins Swim Team % Milton Masters % Dolphin Swim Club (Oakville) % Oakville Aquatic Club % Oakville Masters % Total 1,574 2,569 3, % 35

45 Results of the Aquatic Stakeholder Survey More Pool Time is required Half of the aquatic sport clubs indicated that they do not receive enough pool time to adequately support their programs. The clubs require a combined total of 63 additional hours per week to satisfy existing program demands. Currently, the clubs are using an average of 18 hours of pool time per week outside of their respective municipalities. However, clubs report that pool time in other jurisdictions is difficult to obtain because resident groups from within the municipality receive priority times. The Need for Pool Time will Increase The following table demonstrates that the aquatic groups currently use 256 hours per week in municipal 25M pools and 19 hours per week in 50M long course pools in other jurisdictions. Given an ability to grow their numbers by virtue of more pool time, groups anticipate the need for 301 hours per week in 25M pools and 189 hours per week in a long course pool by Pool Type 2008 hours /week 2013 hours/week 2018 hours /week 25M Pool Use M Pool Use Total % Increase 43% 24% Simultaneous use of pools by a number of groups is a common practice that maximizes pool use, which helps to mitigate a limited supply of desirable pool time. Through implementing a simultaneous use strategy, the projected number of required programming hours could be reduced by groups agreeing to share the pool for synergistic programs. 36

46 Aquatic Sport Clubs Anticipate Hosting More Competitive Meets The aquatic sport clubs report that competitive events produce funds that are vital to the groups financial health. In view of the importance of this activity, clubs suggest that if more pool time became available and if volunteers continued to be willing to organize events, more meets would be hosted. The aquatic stakeholder survey asked groups how many meets each club would anticipate hosting per year in either a short course or a long course pool. In total the clubs projected 26 short course meets (in existing facilities) and 26 long course meets at the proposed 50M shared facility would be possible. Market Tolerance for Pool Rental Rates In response to a question about rental rates, 88% of the aquatic clubs report that a range from $80.00 to $ per hour would be acceptable for the use of the proposed 50M pool. In comparison, McMaster University is currently charging $15.50/ lane /hour and $ per hour for the full use of its 50M pool. Governance All aquatic sport clubs support a combined governance model through which a Committee with representation from all three municipalities would run the new facility. 50M Pool Design Elements All of the aquatic sport groups were asked about design elements that should be considered for the proposed facility. The majority suggest that the size of the main pool tank should be capable of hosting national and international events. Further, club representatives believe that the facility should include a warm up and cool down pool, reasonable viewing areas (both stationary and portable seating), adequate deck space, as well as state of the art timing and communications technologies. The following graph illustrates the groups importance ranking of the design elements. 37

47 Stakeholder Advice to the Steering Committee and Councils The aquatic sports clubs were asked to provide advice regarding the design, construction and operation of a shared 50M Pool. The following excerpts summarize the thoughts expressed at the stakeholder meeting and through the user survey. 38

48 A competitive focus should be maintained in the design and operations of the pool. Further any leisure components (slides, zero depth, etc.) incorporated into the 50 metre tank would compromise the use of the centre for competition. Therefore, if leisure components were contemplated, they should be offered in another tank preferable separated by a wall or another form of separation. The facility should hold two 50M pools, one being a competition pool (10 lanes) and the other a warm up / cool down pool (8 lanes) The facility should be home to world class aquatic sports teams and have the ability to host national and international competitions The facility should share the risks of the operating costs through a public and private model The facility should also house storage for all clubs, shared office space, dry land and fitness training space, electronic scoring and timing, diving tank for 1M, 3M and 5M boards and a 10M platform Physio-therapy and massage therapy office space Adequate seating for national and international event venues Media centre and meeting rooms Cafeteria and or food court area Swim equipment pro-shop The consultants and the Steering Committee welcomed the input provided by aquatic sport clubs while recognizing that the design, operations and use of the proposed pool must balance the needs of competitive clubs with the necessary to maximize the community benefit and financial performance of such a significant public facility. Impact of a Long Course Pool on the Usage of the Existing Pool Supply The introduction of a 50M long course pool within one municipality and in close proximity to the other two participating municipalities would have an impact on the existing pool supply within the three jurisdictions. It is anticipated that the programming of the 50 metre pool would include the following types of activities. 39

49 Leisure/Recreational Swimming an open swim for all ages and abilities to enjoy playful aquatic activities Lane and Fitness Swimming opportunity for swimmers of all levels to increase their level of swimming ability, distance and intensity Swim Lesson Continuum - for learn to swim to advanced training and leadership development a full range of opportunities to learn how to swim, and learn how to lifeguard and teach swimming skills Rentals - rentals for long course training and competitive meets for aquatic clubs from surrounding municipalities demand for long course swim meets that cannot be accommodated within other municipal jurisdictions Therapeutic Pool Use the therapeutic pool would be open at most times other than for maintenance for patrons to enjoy the therapeutic value of the warmer water. Aquatic Fitness Classes aquatic fitness classes will augment the fitness centre s full dry program and a wide range of aquatic fitness classes and opportunities range of choices would be offered in the pool. As demonstrated above, the programming elements of the 50M pool would be very similar to the programs and services offered at municipal and school operated pools currently operated in Mississauga, Oakville and Milton. The consultants offer the following observations and potential impacts of a 50 metre pool on the performance of the existing pool inventory within the three municipalities. The 50M facility would satisfy the current and future pool requirements of aquatic sport clubs. Clubs would relocate most of their pool rentals to the new long course facility thereby freeing up time in existing pools for other community programming. The amount of time that would become available due to the relocation of club programming would vary between municipality and pools within municipalities. Therefore, to varying degrees, the introduction of the new long course pool would result in newly available hours to satisfy pent up demand for recreational swimming and swim lessons in certain underserved areas within the three municipalities. The recreation master plans in both Oakville and Milton call for a new 25 metre pool to meet short and long-term community aquatic requirements. The analysis that led to these recommendations did not anticipate the introduction of a 50 metre pool. The supply/demand ratio that led to a conclusion that new aquatic 40

50 facilities were required in Oakville and Milton would have been quite different had the availability of a 50 metre pool been included in the analysis. For example, aquatic club rentals one of the needs considerations would have been entirely satisfied by the long-course facility. Additionally, a portion of the anticipated hours to accommodate latent or growth related demand for public swimming and lessons would no longer be required. Therefore, if the 50 metre pool was to proceed, the feasibility analysis of the recommended community pools in both Oakville and Milton should retest the short and long-term pool supply/demand assumptions and demand calculations that were included in the Towns master plans. Mississauga is in the process of implementing a pool rehabilitation strategy through which many of its existing facilities are being renovated, updated and retrofitted. Although the City s Recreation Master Plan suggests the current supply is sufficient to meet Mississauga s short and long-term aquatic demand, the physical status and repair of its pools requires attention to stay current with the needs and expectations of users. The rehabilitations strategy also calls for the re-purposing of four pools located in school facilities. Given that all of these facilities are in the south of the City, it is unlikely that existing patronage could be reasonably relocated to the new long course facility in the northwest of the municipality. Existing pools that are proximate to the location of the new long course facility will experience a reduction in patronage. Based upon recreation participant patterns, pool users will gravitate to newer facilities that offer a wider range of physical features and amenities. In many communities, pool patrons will drive past old facilities to access new ones. Consequently, it is very likely that the operators of existing pools within a reasonable travel radius from the proposed 50 metre pool (approximate 20 minutes) could expect to lose facility traffic and the associated revenue. 41

51 SECTION FOUR SITE ANALYSIS, CAPITAL DESIGN AND COSTING Site Analysis and Proposed Location of the Shared 50 Metre Pool Site Site Evaluation Criteria & Evaluation The consulting team and the Steering Committee agreed on site evaluation criteria using two sets of ratings: (1) minimum and mandatory site conditions and (2) additional and preferred conditions. The following criteria were employed to evaluate potential sites. Evaluation Stage 1 Mandatory Criteria The Committee agreed that mandatory criterion would be used to screen the nine potential sites and that only the sites that meet all of the mandatory criteria would be short listed for further evaluation. The following mandatory criteria were applied to each candidate site. The site;. 1. Must be located within the urban area boundaries of one of the three municipalities 2. Is owned by one of the three municipalities and ready for the proposed development within the project schedule 3. Of a sufficient size to accommodate the proposed facility; the minimum size of site for the aquatic facility would be 25 acres; based on one third coverage of the site for the facility as well as parking and the option of added facilities and amenities 4. Has no impediments to development (environmentally sensitive areas, sensitive ecology, brown fields) legal issues (zoning, planning, easements) or physical restrictions (topography, lot shape). The following five sites successfully met all of the mandatory criteria th Line situated in Milton owned by the City of Mississauga Matheson Blvd. West owned by the City of Mississauga Lakeshore Road owned by the City of Mississauga 42

52 4. Neyagawa Blvd, & Dumas Street East owned by the Town of Oakville (North Park) Derry Road owned by the Town of Milton (Sports Centre) Evaluation Stage 2 Preferred Criteria The short listed sites were tested against nine additional criteria related location, site size, develop potential and cost. Sites received ranked scores indicating their ability to meet each of the requirements. The preferred and recommended site received the highest aggregate score through the application of the weighted evaluation process. The results of this process are presented in the following table. 43

53 44

54 Mandatory Weighting 9th Line Matheson Lakeside North Park Sports Centre Municipalities of Milton, Mississauga and Oakville-Shared 50 Metre Pool Study Evaluation and Analysis of the Proposed Sites Site Evaluation Criteria for an event venue for all competitive swimming, synchronized swimming and water polo at the Provincial level) Notes Location Sites 1 Within urban area boundaries of one of the 3 municipalities X Factual, no weighting required 2 Close to 400 series highway exit; main access on collector road; no access through residential streets 3 Quick vehicle access from (centre of population of) all municipalities (30 min max) 0 to Defines ideal auto accessibility 0 to Anywhere within the 3 municipalities is close; site that borders all 3 = 7; east side of Mississauga = 0 4 Available public transit 0 to 5 to be determined Sustainability requirement; frequent local and regional connection = 5, frequent local bus = 3; low frequency local bus = 1 5 Highly visible / easily accessible (incorporates #13) 0 to Important for many new visitors; access to parking and building be visible from major road; attractive for naming rights Size 6 Minimum 25 acres X 7 Expansion potential 0 to Not critical; could be limited expansion within the 25 acres Development Potential 8 Owned by one of the municipalities and ready for proposed development within Project Schedule 9 No impediments to development ( environmental [sensitive ecology, brown field], legal [zoning, planning, easements], or physical restrictions [topography, lot shape) X X Factual, no weighting required Adjacent land uses are compatible (recreation, medium/high density 0 to Difficult accessibility, noxious 45

55 10 residential - away from unsafe or non-compatible [industrial] uses) [incorporates #11] industrial = 0; highly compatible recreation uses could range to The site has few or no physical limitations of topography, lot shape, or existing facilities; the site is flexible and encourages good design. 0 to Not critical but very desirable to have an attractive site. Cost of Development 12 Site development costs are reasonable (within the budget allocationavailable services capacity and soils conditions) 13 Potential capital / operating cost economies thru co-location with other municipal services 0 to 5 to be determined Importance depends on budget - can vary from 5 to more than 15% of construction cost 0 to Very difficult to quantify without further study Totals

56 Recommended Site Based on the site analysis and evaluation process the consulting team recommends the th Line site which is situated within Milton s municipal boundaries yet is owned by the City of Mississauga. The site is best situated in terms of proximity to all three municipalities, is easily accessible from the 407 highway and is of a significant site size to accommodate the aquatic complex, parking and other additional amenities that could be considered for the facility. Should the proposed 50M pool be approved, the City of Mississauga and the Town of Milton would be required to agree upon a boundary realignment so that the 9 th Line site would be within Mississauga s municipal boundary. 50M Pool Facility Design Considerations In many municipalities, hybrid community facilities that combine sports, recreation, and public programs under one roof increasingly are the most preferable public gathering places. Combined with sports fields, playgrounds, landscaped recreation areas, and other compatible program space, the intersecting use patterns of multiple-program facilities increase popular use and maximize the economic efficiency of each program element. The richness of the public experience is a direct result of the wide range of social interactions between many different overlapping user groups. This would be true for the elite sports training and competition complex proposed for Mississauga/Oakville/Milton. As is all successful multi-component community complexes, the proposed MOM facility would include the following design characteristics. Efficiency and Expandability The functional aquatic complex must be clearly organized to accommodate the high traffic associated with competitive swimming events and cross-programming that can be anticipated during and following competitive meets. It must also have a clear, pre-designed plan of flexible growth and expansion so that future modular additions and program elements can be inserted with little disruption to on-going programs and building operations. Flexibility requires a clear public circulatory system, a physical organization that is immediately evident. This clarity starts at the entrance and guarantees an ease of use, with all public areas visible and accessible directly from the central public space. Transparency and visibility are important design elements for the smooth operation of this high occupancy facility. 47

57 Safety and Visibility The proposed aquatic complex will have extended hours of operation with multiple user groups, often including children s programs. These facilities are the most nocturnal of all public buildings and require special attention to security issues. By using Crime Prevention through Environmental Design (CPTED) design principles; the facility can be made more secure for users. CPTED is based on several design factors including natural surveillance, access control and the enhanced sense of public ownership of the facility and its surroundings. By designing for clear sight lines, way finding, between the various areas of the building, and by maintaining unobstructed views directly to exterior spaces and parking areas, the facility becomes more user friendly and more secure. Control and information desks are the first destination point, located in a strategic central position to have complete visual access to all exterior and all program room entrances. This Single Point Control is an operational cost saver, reducing the number of staff necessary to operate the building. This location allows facility staff to centrally supervise program activities, welcome users and groups and to control access to specific program areas. This is especially important in the aquatic centre, which is specific safety issues related to unauthorized access to the pool. Construction Efficiency Swimming pools require unique performances from finish and structural materials that are resistant to the harsh pool environments. They have specific air-vapour barrier requirements and special mechanical systems for dehumidification and heating that are often linked into energy saving heat recovery systems. A successful community facility uses the most efficient structural and mechanical / electrical systems in combination to form one integrated facility. The proposed facility would be constructed within a responsible budget with robust, low-maintenance materials. To contain operating costs, easy to clean and maintain finishes are important to minimize staffing costs and program down-time. Energy Conservation Energy budgets can be developed based on prime factors that influence energy consumption; lighting, heating, cooling and hours of operation. With a target energy consumption rate, the design goal would be to reduce energy requirements set out in ASHRAE 90.1 to 75% of the minimum National Energy Code requirement for the building type. The building strategies that assist in meeting this goal include: 48

58 High performance insulation systems in roof and walls Thermally broken and insulated window systems Air lock and vestibules on all entrances (especially pool exits) Roof overhangs, light shelves and shading to provide light but control solar heat gain Energy efficient lighting switched by control systems (timers and sensors) Smart-building zoning of mechanical systems to support several building micro-climates High performance mechanical systems; heat recovery loops and Energy Managements Systems Passive and active solar heat collection Siting and landscaping for solar and wind exposure control. Sustainability and LEED Certification: LEED (Leadership in Energy and Environmental Design) is the recognized Green Building rating system. A commitment to LEED principles results in the incorporation of a large number of environmental items beyond energy conservation goals. These range from the use of recycled materials to indoor quality standards of natural light and air that affect all aquatic facility users. The principles of sustainable design for buildings also help to safeguard the local ecosystem and environment, use resources efficiently, maintain healthy environments and reduce waste and pollution during the entire life span of the building. Achieving LEED design standards can add up to 5% additional capital cost for standard buildings; however, modern aquatic facilities are designed to near-leed standards to mitigate long-term operating costs. Meeting a LEED Silver designation should be the goal for this project based on life-cycle costing and good environmental stewardship. 49

59 LEED Capital and Operating Cost Implications Many municipalities have embraced the LEED program as a recognizable and effective vehicle to describe their commitment to environmental sustainability. Part of this program addresses conservation of energy through reduction strategies, and the use of non-traditional energy sources, like geo-thermal energy. While aquatic facilities use more energy than most buildings, recent designs have incorporated many of the lower cost strategies for minimizing utility costs, like well insulated building envelopes, high efficiency equipment, and energy management systems. Further reductions may be realized using integrated design methods and the use of higher capital cost equipment, like geo-thermal. While the adoption of LEED requirements can add 5% to the construction cost of a building, we believe that the adoption of these requirements in the area of energy conservation can realize a 10% reduction in annual utilities costs, in addition to the many sustainability benefits. Green Roofs Green roofs replace traditional water shedding surfaces with growing medium and plants. Using a mineral based soil, indigenous plants grow on a low weight and low maintenance roof surface. Community sports and recreation centres typically have large span horizontal or low slope roofs that are ideally suited for the simplest and most economic form of green roof. These roofs have life cycle costs similar to conventional flat roofs, and they provide additional environmental benefits including energy savings from summer cooling, winter insulation, and extended roof membrane life. They provide larger-scale benefits as well; reducing urban heat islands and filtering storm water. In built-up urban areas, green roofs slow the peak loads of storm water flow and this important reduction in volume can reduce the size of newly constructed infrastructure and delay or eliminate the expensive need to replace existing storm sewer systems. We recommend that some portion of the proposed facility incorporate a green roof. Accessibility The recently enacted Ontarians with Disabilities Act requires public facilities to not only be accessible but to also be fully usable. For new aquatic facilities, each pool must have an appropriate entry and exiting that can include ramps, lifts, and raised pool edges to provide equal access for all generations and levels of ability. Both contrasting colour and tactile markers must warn of level changes, adequate rails and guards must deflect unsafe passage, and specially designed hand-holds will provide comfort and security when grasping the edge of the tank. 50

60 Change facilities will be sized to allow for accessibility to the lockers, showers, and washrooms; clothing storage will be lowered; and entrances will be wheelchair accessible. Spectator seating must accommodate provision for handicapped / wheelchair positions that provide a variety of viewing locations. These are only a few examples of the redefined design challenge to make the new aquatic complex truly usable by all ages and levels of ability. FACILITY SPACE PROGRAM CONSIDERATIONS In determining the proposed facility program, consideration was given to balancing the needs of the aquatic sports clubs, the community needs garnered through the development of the master plans, advice from other municipal jurisdictions and pool operators as well as the capital budgetary restraints of all three municipalities. Further the sustainability of the operating budget to maintain a long course pool became a major consideration. In balancing all of the needs and proposed facility components the following facility program is proposed; 1. Designed as a community facility that can support aquatic sports development in the tri-community area, the facilities will target competitive swimming, synchronized swimming, water polo and possibly diving should funding become available. 2. Additional program space in the form of fitness facilities and multi-purpose rooms is added to facilitate both sports development and wider based community use. 3. A community multi-purpose pool (warmer, shallower water) has been included to increase the usage of the infrastructure (change rooms, parking, public space, management/ administration), of the primary use sports facilities, and to provide additional revenue sources. 4. In addition to training support, the sports facilities can also be used to host competitive swimming events at the provincial level and limited national level. The spectator seating capacity will be adequate for the facility to host international events in water polo, competitive swimming and synchronized swimming 51

61 Water 5. While the facilities will be designed to meet community needs, they can also support the requirements of major international swimming competitions as training facilities for all four aquatic sport disciplines, while supporting the requirements for the water polo event venue. 6. Permanent seating for 1000 spectators has been provided, including 800 in retractable bleachers, and 200 in stationary seating. An additional 200 seating can be temporarily accommodated in the event the facility was utilized to host international competitions. Seating for competitors is provided by 600 on-deck retractable bleachers. Pool facilities include three separate tanks, capable of being operated at different temperatures, to accommodate a variety of programs. The primary component is the 52 metre pool tank with 8 lanes (20.4 metres) for swimming competition. It features a moveable bulkhead that can provide for two 25 metre swimming courses; and can also be adjusted to provide 30 metre venues for water polo and synchronized swimming. The depth of this pool will vary from 2 metres (shallow) to 5 + metres. The final dimensions of this pool will be determined by FINA standards for an 8 lane competition pool which can also accommodate synchronized swimming and water polo. This is the minimum sized pool to accommodate these sports at the FINA level. Community Pool The second water tank designated as the community pool will have an irregular shape with varying water depth from zero (beach) to 1.2 meters. Directed towards the broader community requirements, it will include such features as water toys, bubble floors (benches), spray features and slides. It will also include four 25 metre lanes to be used for warm-up swimming by competitors, but can also be used for such uses as fitness swimming, water aerobics and lesson programs. It will be at a warmer temperature (85 to 87) than the competition tank. Therapeutic Pool The third tank, a therapeutic pool, is primarily a very popular leisure pool for the general public, but can also be used by competitors and the public for therapeutic uses. It is also suitable for lesson programs for tots. 52

62 Deck Facilities Deck areas around the main pool will be a minimum of 3 meters clear at the sides and 6 meters at the ends. In addition to on-deck retractable seating for athletics, starting blocks, sound systems (above and under water), under water lighting and viewing windows, sophisticated race timing systems and displays, and handicapped lifts will be provided. Steam room and dry sauna will be located on deck and a viewing area near the community pool will be available for parents viewing. Change Facilities Large, accommodating change facilities will be required to meet the needs for aquatic sports training and competition events while an additional universal or family change room will be provided for wider community use. All facilities will be completely accessible for both sport and leisure users. Support Facilities Important auxiliary facilities will include several multi-purpose program rooms for meetings, social events and as support space for competition events. A large area has been designated as a fitness centre, a part of which could accommodate a wellness centre, complementary to the aquatics focus of the facility - sports medicine, physiotherapy. General public spaces, administration and building service spaces complete the program. 53

63 Summary of - Proposed Program Space Requirements Room Aquatic Centre Program Rooms Fitness Centre Component Square Feet 57,560 3,100 7,480 Administration 1,850 Public Spaces Building Services 5,700 3,100 Net Area 78,700 Walls, partitions, 25% 19,698 Gross Area 98,488 Project Costs include construction of building & site; design and construction contingencies; equipment, and fees. Depending on design development, site conditions, LEED certification could cost up to 5% additional. The following conceptual drawing captures the draft design elements and space program; 54

64 Capital Development and Construction Costs Project Cost Estimate The following project cost estimate has been prepared by MJM for this feasibility report. This estimate is based on the Program of Space Requirements and from information on similar aquatics facilities construction projects in the Greater Toronto construction area. It is meant to reflect fair market value for the construction of the project assuming a competitive tendering process to a prequalified list of bidders for a standard CCDC-2 Stipulated Sum contract. Following completion of a concept design for the aquatic centre, this estimate will be reviewed and revised as required by A.W.Hooker Associates Ltd., Cost Consultants. 55

65 Unit rates used are based on typical mid-range costs for the type of construction and materials proposed, and include labour and materials, equipment, and subcontractor overhead and profit. Union contractors are assumed to perform the work. The estimate is not a prediction of low bid and the pricing assumes competitive bidding for every aspect of the work. The Contractor s General Requirements and Fees are included as a percentage of the hard construction cost. These costs include supervision and labour, access to the site, site facilities and equipment, temporary protection, utilities, clean-up, and miscellaneous project requirements. The estimated costs of standard 50% Labour / Materials, Performance, and 10% Bid Bonds are also included. A design and pricing contingency of 10% of the hard construction cost has been included. It is meant to cover unknowns in design and pricing, not program or quality modifications, at this stage in the project. This contingency will reduce to zero at the pretender stage. An escalation contingency of 9% has been included to allow for the anticipated increase in construction cost to the anticipated tender date in the spring of This represents an annual escalation of 6%. A construction contingency of 5% has been included to cover potential cost changes during construction. Some clients include an overall project contingency that is not usually noted in the project estimate. Two main soft cost categories have been included that are part of the total project cost but separate from the hard construction cost. They are often related as a percentage of the construction cost, as we have shown for furnishings / equipment (5%), and fees / expenses (9%). The former includes loose equipment like data / communications, timing systems, bleacher seating, pool safety equipment, starting blocks, fitness equipment, and loose furniture. The latter category would include consulting fees / disbursement, independent testing / inspection, third part commissioning, and permits. 56

66 Preliminary Estimate of Project Costs - 98,500 Square Feet Component Building Cost Building Shell 13,790,000. Building Interior 11,032,000. Mechanical 5,614,500 Electrical 2,758,000. Site Work 3,447,000. Contractor s Requirements 2,265,500. Contractor s Fees 886,500. Estimated Construction Cost 39,794,000. Design Contingency 3,970,000. Construction Contingency 1,940,000. Furnishings and Equipment 1,990,000. Fees, Permits and Expenses 3,521,000. Estimated Project Cost (Q4-2008) $51,215,

67 SECTION FIVE BUSINESS PLAN Purpose and Scope of the Business Plan This feasibility study is to result in a detailed operating budget for the 50M pool complex under study. Budget parameters and operating assumptions are to be based upon reasonable practices employed by comparable municipally operated aquatic facilities as well as related industry standards. To provide a reliable platform from which future goforward decisions can be based, the assumptions have been normalized to reflect local pool operating circumstances based on the City of Mississauga s aquatic performance thresholds. The study process included the following activities. Primary research of operating thresholds of aquatic facilities that is comparable in scope and magnitude to the contemplated project. Input from Mississauga City staff regarding program, price, cost and other operating information. An estimate of the likely financial and operating impact of ancillary space(s) contemplated for the complex i.e. a fitness centre and rentable spaces. Preparation of preliminary financial forecasts based upon the foregoing research. Follow-up discussions with municipal staff to confirm the consultants preliminary operating and budget assumptions. Refinement of the budget's assumptions and financial projections. Preparation of this business plan. For clarity, it is important that the reader understand that this plan is to portray a municipal management approach that would be used as a threshold to guide both development and operating decisions. Hence, the financial projections presented herein demonstrate what could be expected if the project was to adopt a municipalmanagement approach for the aquatic complex. This information has two uses: (1) forecasting reliable cost estimates of a municipally operated aquatic facility, and/or (2) 58

68 providing a benchmark through which third-party operating arrangements could be effectively evaluated. Focus of this Section of the Feasibility Study Report This portion of the report presents the budget parameters, operating assumptions and a summary of the financial forecasts. We also provide the background and rationale for certain operating approaches based upon input from municipal staff, comparable facility operators and/or industry standards. Summary of Research Findings Comparable Aquatic Facilities The research of comparable examples included examination of the pool specifications, features and operating practices of ten aquatic facilities that are similar to the proposed 50M aquatic complex. Research activities involved inspections of on-line pool specifications and program information, review of the consultants pool data files as well as selected discussions with pool operators. Facilities in the following municipalities were included in our research. Toronto, ON Coquitlam, BC London, ON Nanaimo, BC St. Catharines, ON Surrey, BC Sudbury, ON Langley, BC Saanich, BC Richmond, BC All of the pool examples that have been used as comparable facilities are 50 metre tanks and in several cases involve leisure tanks and other recreational features. The City of Mississauga pool operating profile was used as a template to project basic operating parameters such as staffing levels, program inventories, fees, etc. Given that 59

69 all of the City s pools are 25M, the Mississauga operating approach was adjusted to reflect the operating profile required for a larger 50M aquatic facility. Operational Considerations The following sections describe key learnings and operational considerations gleaned from the input provided by the operators of the 50M facilities. Connection between Pool Design and Staff Requirement Aquatic facilities are costly to operate. Payroll and related labour costs can represent as much as 70% to 80% of the total operating expense for 50M pools or large free form leisure pool concepts. Consequently, labour cost containment initiatives should be maximized to their fullest extent. There was consensus amongst the operators of the comparable pool sample that there is a direct correlation between pool design and labour costs. Facilities with sightline obstructions (caused by the placement of play features and other visual impediments) can dramatically increase the guarding requirements for recreational swimming. Additionally, free form tank designs, the inter-relationship between the main pool and leisure components (such as separations between water slide delivery pools and main tanks) or office locations can significantly influence staffing requirements and payroll costs. Several informants advised that a design committee, comprised of individuals knowledgeable about aquatic operations would be a valuable asset during the facility design process. All Day Open Swims Currently, most Ontario based pool operators offer a series of scheduled recreation swim times during each seasonal session. This has historically been the industry practice of traditional (rectangular) tank facilities. Interestingly, operators of comparable facilities in British Columbia have adopted a different approach - an all day recreational swim philosophy. Informants suggest that providing open swimming all hours of the day not only augments pool traffic, but also is consistent with the trends towards more spontaneous participation in leisure activities. Moreover, the approach increases the appeal of the facility to a broader target market. A few individuals in the research sample suggest that the open environment creates an enjoyable destination and a sense of community amongst pool users. Consequently, 60

70 informants suggested that the proposed aquatic complex examine and consider an all day recreation swim approach. Honeymoon Period Pool operators report that their pools were extremely popular and well attended in their initial year of operation. In several cases, the unique nature of the leisure components and the newness of the facilities translated into significant traffic in year one. However, each pool experienced a decrease in participant visits in the second year, after the initial honeymoon period. Informants contend that this reduction is linked to a variety of factors not the least of which is a wane in the initial enthusiasm surrounding the opening of a new facility. They suggest that rolling out creative marketing initiatives and implementing interesting programming at the beginning of year two could help to offset this potential decline in traffic. Furthermore, a scheduled capital investment plan for the facility with a view to continually reinventing the complex to maintain publicinterest may be another useful strategy to level the peaks and valleys in recreational swim traffic during the first few years of operation. According to the operators, even though their pool s recreational swim visitation declined in year two, traffic generally returned to first year levels within 24 to 36 months depending on the mitigating measures employed by the facility. Lesson Environment Although leisure components of large aquatic developments are extremely popular recreational swim venues, instructional or competitive training programs are sometimes inhibited as a result of several environmental factors. The amount of activity in the pool caused by slides and water toys is often distracting to lesson or training participants. Moreover, noise migration sometimes makes it difficult for instructors to communicate with their classes. Although all of the comparable examples offer instructional programming, some restrict the number of lessons provided at the pool during times when high recreational swim levels are expected. Where possible, some operators elect to schedule instructional sessions at other municipal facilities during popular recreational swim times. 61

71 Operating Assumptions and Budget Context As mentioned earlier, the preliminary budget for the proposed 50M aquatic complex would be helpful to municipal officials in determining the appropriate development and operating implications for this significant addition to the recreation facility inventory of the three participating communities. Therefore, operating assumptions are based upon a traditional municipal management approach, utilizing thresholds (such as labour rates and user fees) that are consistent with Mississauga s recent operating experiences. As a result, the budget forecasts represent a realistic estimate of the costs associated with a municipally self-managed philosophy. However, there could be cost savings available through alternative service delivery approaches - such as outsourcing the management of the facility to a third-party operator. Therefore, the budget forecasts could be used as a tool to evaluate propositions from proponents if the Board of Management elected to pursue alternative operating approaches. Project Components The proposed 50M aquatic complex would be an integrated blend of facilities, programs and services answering a broad range of recreation and leisure requirements of residents of the three participating municipalities. While the main focus of the complex would be aquatic activities, plans call for the facility to provide a fitness centre, commercial space and community meeting rooms. Service Segmentation For the purposes of this business plan and budget preparation, the operation of the 50M aquatic complex has been divided into the following business units with specific and identifiable mandates. Central Services (Facility Administration and Operations) This area of service includes all administration and operating costs associated with the complex. Payroll costs include the Manager, Aquatic Supervisor, Operations Supervisor, Customer Service Representatives, Building Operators and Administration Staff. Expenses related to the delivery of administration services, as well as the cost of maintaining common areas (such as the lobby, reception and washrooms) are included in this area of the budget. Although Central Services produces no program income, 62

72 revenue generated by advertising, sponsorships and naming rights has been allocated to this business unit. Aquatic Centre The aquatic business unit includes all costs and revenues associated with instructional and recreation swim activities, certain dry land training and/or other pool related programs. Staff costs include the instructors, and guards. Instructional/recreation swim revenues, program delivery costs and utility expenses directly related to the pool areas are included within this area of the budget. Fitness Centre All costs associated with programs and initiatives that relate to the fitness centre are built-in to this service unit. Given that the service delivery strategy for this area of business has yet to be determined (i.e. self managed vs. a relationship with a third-party operator) general revenue and cost assumptions have been based on industry performance standards. Leased Space and Room Rentals The complex could offer tenant spaces (i.e. physiotherapy clinic located in the fitness centre space, etc.) that would be leased on a long-term basis. It would also provide community rooms for rent by the general public and special event opportunities such as birthday parties, etc. Net revenue from these business activities is captured under this area of business. The following sections provide details of the business plans and pro formas for each service segment of the aquatic complex. The consolidated plan is included in the final component of this section. Hours of Operation The business plan and pro form assume that the complex will operate a total of 117 hours per week - Monday through Friday 6 a.m. to 11:00 p.m. and Saturday and Sunday 6:00 a.m. to 10:00 p.m. It is anticipated that the pool will operate 110 hours per week. Part-time custodial, maintenance and customer service staff allotment have been budgeted in sufficient quantity to operate the facility efficiently while maintaining a high customer service standard. 63

73 Management and Staff The staffing model envisions a Manager, supervisors and support staff with a focus to provide top quality service to program participants and others who would patronize the complex. The Manager would be ultimately responsible for the entire facility. This individual would require multiple skills and expertise including an intimate knowledge of aquatic operations, familiarity with property management and tenant coordination functions, an understanding of community programming techniques and be capable of administering a multi-million dollar operation involving a multi-faceted mix of user and uses within a common facility. The Manager would work with a team of supervisors with equal and supporting roles. Each supervisor would be responsible for a major operating unit within the facility. Customer service representatives, building operators and administration personnel would be the staff that deals with the day-to-day operations and customer service issues in the facility. The aforementioned staff members would constitute the Central Services Unit of the facility. The Aquatic Programmer would be completely responsible for the development of programs and services capable of accommodating all rentals by swim clubs, instructional programs, recreational swimming and specialty training service requirements of the community. It is expected that much of this individual's responsibilities would revolve around the aquatic complex, outreach programs and other community aquatic requirements included within the job portfolio. An aquatic team made up of full and part-time lifeguards, instructors and contract personnel would support the supervisor. As part of the marketing portfolio the supervisor would interact with the community to promote the programs available at the complex as well as identify any service voids. Together, the Manager and Aquatic Programmer would focus on the constant delivery of top quality customer service to facility patrons. These individuals would also be expected to monitor internal and external customer trends and conditions to ensure that the complex remains on market. They would develop systems to ensure quality leisure experiences for all facility users and create mechanisms through which staff could collect and interpret important data such as levels of facility use, program participation, and retention of participants, user profiles and spending patterns. They would also monitor external market conditions and local demographics so that the complex s 64

74 program could be adjusted in response to both internal and external customer factors. While all staff will be considered as part of the customer service team, there would be a full-time Customer Service Coordinator assigned to the reception desk and part-time administrative staff responsible for the other service areas. The Operations Supervisor would be responsible for all building operation and maintenance functions. This individual would require expertise in a variety of disciplines including heating, ventilation and air-conditioning, maintenance, purchase and supply of inventory, maintenance of domestic water and other treatment systems, grounds maintenance, general repairs, etc. Full-time operations staff handling the cleaning and maintenance functions would support the supervisor. Additionally, the budget includes part-time maintenance staff to conduct cleaning and facility maintenance activities during non-prime times and weekends. Central Services The mandate of this business unit would be to provide top quality services to support the program delivery efforts of the aquatic, fitness, and rental units in the most cost efficient, responsive fashion. The following assumptions were used to generate the financial projections for this service area. The financial projections assume that the facility would operate 50 weeks a year. Full-time and part-time staff compensation is based on the mid-range for City of Mississauga salary and wage rates for similar positions. 65

75 Position Salary/Wage Manager $ 90,000 Aquatics Programmer $ 57,000 Customer Service Coordinator $ 57,000 Operations Supervisor $ 74,500 Operations staff (6) $ 300,000 Customer Service (part time) $15/hr Reception (part time) $13/hr Full Time Benefit Multiplier 20% Part Time Benefit Multiplier 10.5% Sponsorship revenue is based on the revenue production of other large, municipally owned community recreation facilities in Canada. Utilities and basic operating costs are calculated at $8.00 per square foot of space allocated to wet areas in the centre and $5.50 per square foot for the space allocated to the public spaces such as the lobby, washrooms, etc., as well as the administration and building service areas. Minor repair costs are expected to begin in the first year of operation and are calculated at $1.00 per square foot for the common area space. Miscellaneous supply costs including floor mats, extraneous washroom supplies and items not included in other expense areas are calculated at 75 per square foot for the common area space. Office costs are projected at $1,000 per month. 66

76 Costs to operate and maintain the communication system including the telephone, intercom and computer networks are projected to be $1,000 a month in the first year of operation. To offset the impact of the anticipated second year reduction in traffic, marketing initiatives are expected to escalate in year two and are therefore projected at $25,000 in the first year of operation and then raised to $50,000 in the second year. All revenue and expenses are escalated at a 2% factor per year to account for inflation. The following table presents a summary of the 5-year operating projections for the 50M pool complex. Item YR 1 YR2 YR3 YR4 YR5 $(000) $(000) $(000) $(000) $(000) Revenue $ 367 $ 375 $ 382 $ 390 $ 398 Expenses/Labour $ 899 $ 917 $ 936 $ 954 $ 973 Utilities $ 488 $ 497 $ 507 $ 517 $ 528 Admin. Supplies $ 23 $ 23 $ 24 $ 24 $ 25 Office Expenses $ 12 $ 12 $ 12 $ 13 $ 13 Telephone $ 6 $ 6 $ 6 $ 6 $ 6 Repairs and Maintenance $ 21 $ 21 $ 21 $ 22 $ 22 Marketing $ 25 $ 50 $ 51 $ 52 $ 53 Program Supplies $ 8 $ 8 $ 8 $ 8 $ 9 67

77 Item YR 1 YR2 YR3 YR4 YR5 $(000) $(000) $(000) $(000) $(000) Pool Equipment Repair $ 17 $ 17 $ 17 $ 18 $ 18 Pool Maintenance Supplies $ 28 $ 28 $ 29 $ 29 $ 30 Misc. - Training/Mileage Etc. $ 10 $ 10 $ 10 $ 10 $ 10 Total Expenses $ 1,535 $ 1,591 $ 1,622 $ 1,655 $ 1,688 Net 50M Pool $(1,168) $(1,216) $(1,240) $(1,265) $(1,290) The consultants recommend the establishment of a dedicated capital reserve account for the facility and that the account be funded through operations. This recommendation is based on an increasing pool of knowledge suggesting that facilities for which such funds are applied are more efficient, better maintained resulting in a higher degree of consumer satisfaction, experience fewer unanticipated service interruptions caused by failures and have a longer life span. The recommended reserve contribution should begin at.25% of the capital cost of the building in the first year of operation and rise to 1% by year four. The estimated capital cost (in 2008 $) for a 50 metre pool complex capable of accommodating the requirements of major international competitions is approximately $33,000,000. Consequently, the annual capital reserve contribution would increase the net subsidy by $82,500 in year one and growing to $330,000 in the fourth year of operation. 68

78 Adding a Leisure Pool Component to the Facility Mix Although not required to meet the needs of major international competitions, a leisure tank added to the 50M aquatic complex would augment the facility s capacity to meet the broad range of programmatic requirements of the three participating municipalities. According to operators of major aquatic complexes, leisure pools dramatically increase the versatility of 50 metre aquatic facilities and expand their appeal to a wider range of participants. A twin tank configuration would allow simultaneous programs thereby increasing the operating efficiency and cost effectiveness of the facility. Furthermore, the leisure pool could house a full and comprehensive instructional program without compromising the competitive training and event uses of the main tank. Not only would the addition of a lesson program increase the community benefit of the facility, it would also add a useful revenue stream. The concept design contemplates that the building footprint would increase by approximately 18,200 square feet to accommodate the addition of the leisure elements. This includes an increase in water area and the associated deck space as well as a family change room and other related support amenities. For the purposes of demonstrating the financial implications of adding the leisure component, the assumptions expressed in the 50 metre pool section above remain unchanged. Additional assumptions associated with the larger facility are presented below. The aquatic centre would be comprised of a main tank, leisure pool, and whirlpool. The scope of the expanded facility and its broad community appeal would create attractive sponsorship opportunities that may not otherwise be available to a more narrowly focused competitive venue. Sponsorship revenue has been estimated at $125,000 in the first year of operation. The larger facility would require the addition of an Aquatic Supervisor whose salary would begin at $74,500 plus benefits. Staffing costs for recreational swims have been extrapolated from guard ratios required to operate Mississauga s pool inventory while complying with related legislative requirements. 69

79 The main 50M tank would accommodate all club rentals and would be used for all competitive events. The leisure tank would house instructional programs plus a variety of recreational swim activities including family, leisure and teen swim, fitness swims and lane swimming scheduled on a session basis. Instructional programs would include Aqua Tot, Aqua Quest, Aqua Adult, NLS, adult and youth, private and semiprivate lessons and Aqua Fitness. Revenue for each service area (club rentals, lessons, recreational swims, etc.) is based on projected participation in a full complement of program opportunities and City of Mississauga fees for similar services. Participation in lessons and club rentals is expected to begin at 70% of capacity, growing by 10% per year, thereby reaching 100% of revenue potential by the forth year of operations. Recreational swimming activity is expected to wane by 20% in the second year, and recovering by 10% per year, thereby reaching 100% of revenue potential by the forth year of operations. Guard and instructor compensation has been based upon Mississauga s prevailing wage rates and ranges between $13 and $15 per hour and is based upon the total number of hours required to accommodate the seasonally adjusted recreational swims and instruction programs. Utilities are based upon a cost of $8.00 per square foot of space allocated to the aquatic centre. Aquatic supply costs, repairs and maintenance and miscellaneous staff costs (training, mileage, etc.) are projected based upon Mississauga s recent experience. All revenue and expenses are escalated at a 2% factor per year to account for inflation. 70

80 Item YR 1 YR2 YR3 YR4 YR5 $(000) $(000) $(000) $(000) $(000) Revenue $ 987 1,005 1,081 1,160 1,183 Expenses / Labour 1,279 1,305 1,331 $ 1,357 1,384 Utilities $ 592 $ 603 $ 615 $ 628 $ 640 Admin. Supplies $ 23 $ 8 $ 8 $ 8 $ 9 Office Expenses $ 12 $ 12 $ 12 $ 13 $ 13 Telephone $ 6 $ 12 $ 12 $ Repairs and Maintenance $ 11 $ 11 $ 11 $ 11 $ 12 Marketing 25 $ 50 $ 51 $ 52 $ 53 Program Supplies $ 32 $ 33 $ 33 $ 34 $ 35 Pool Equipment Repair $ 42 $ 42 $ 43 $ 44 $ 45 Pool Maintenance Supplies $ 37 $ 38 $ 38 $ 39 $ 40 Misc. - Training/Mileage Etc. $ 592 $ 603 $ 615 $ Total Expenses 2,058 2,114 $ 2,156 2,199 2,243 Net 50M Pool + Leisure Components $(1,070) $(1,109) $(1,075) $(1,039) $(1,060) 71

81 The estimated capital cost to construct the 50M pool plus the leisure components is approximately $51,000,000. Utilizing the formula expressed above, the annual capital reserve contribution would increase the net subsidy by $127,500 in year one and growing to $510,000 in the fourth year of operation. Adding a Fitness Centre to the Facility Mix Most large aquatic complexes provide dry land facilities to accommodate programs that complement water based activities. Fitness or wellness programs are quite synergistic to the types of services normally delivered at aquatic facilities and hence fitness facilities either self managed or contracted out - are frequently included within the building program. Additionally, fitness centres are capable of producing net operating profits that can be helpful and reducing the subsidy requirements normally associated with aquatic facilities. It is anticipated that the mandate of a fitness operation added to the 50 metre pool complex would be to create quality fitness and active living programs that encourage the incorporation of physical activity and healthy living into the daily lives of residents of the three municipalities. For the purposes of demonstrating the financial implications of adding a fitness centre to the aquatic complex, the assumptions expressed in the previous two sections section remain unchanged. Additional assumptions associated with the fitness centre are presented below. The fitness centre would be accommodated in a gross total area of 9,350 square feet. The fitness centre would offer a well-appointed group exercise studio, plus a training room that would be equipped with up-to-date cardio and weight training equipment. Industry averages suggest that the centre could accommodate between 800 and 1,000 individual members a full market analysis would be required to determine the total number of potential members within the trade area of the new facility. Based on average fitness centre use profiles, it is anticipated that the fitness operation would generate an additional 85,000 to 100,000 annual patron visits to the complex. The centre s revenue would be generated through membership sales (87%) and registered program fees (13%). In combination, these revenue streams would 72

82 produce about $483 per member in the first year of operation, which is equivalent to the industry s mid-range of revenue per member. Payroll expense for full and part-time staff would be equivalent to industry ratios - 46% of revenue. The centre would offer a program mix targeting a wide variety of facility users. Utility costs are based upon $5.50 per square foot of fitness centre space. Fitness centre supply costs, program expenses, equipment repair, contracted services etc. would represent about 30% of total revenue. All revenue and expenses are escalated at a 2% factor per year to account for inflation. The following table presents a summary of the 5-year projections for the Fitness Centre added to the complex. Item YR 1 YR2 YR3 YR4 YR5 $(000) $(000) $(000) $(000) $(000) Revenue / Membership Fees $ 443 $ 452 $ 461 $ 470 $ 480 Program Revenue $ 66 $ 68 $ 69 $ 70 $ 72 Total Revenue $ 509 $ 520 $ 530 $ 541 $ 551 Expenses Labour $ 234 $ 239 $ 244 $ 249 $ 254 Utilities $ 51 $ 52 $ 54 $ 55 $ 56 Other Operating Costs $ 147 $ 150 $ 153 $ 156 $ 159 Total Expenses $ 433 $ 442 $ 450 $ 459 $ 469 Net Fitness Centre $ 76 $ 78 $ 79 $ 81 $ 83 Incremental Operating Cost Implications 73

83 Major competitive aquatic centres are expensive to operate and maintain. Adding complementary facility components that are able to accommodate additional programs while producing net operating revenue can help to incrementally reduce the subsidy requirements normally associated with these significant community assets. The following table illustrates the differences in the financial performance (bottom-line) of a standalone 50 metre pool compared to: (1) the facility with the leisure component; and (2) with both the leisure pools and a fitness centre. Item YR 1 YR2 YR3 YR4 YR5 $(000) $(000) $(000) $(000) $(000) 50M Pool Facility $(1,168) $(1,216) $(1,240) $(1,265) $(1,290) 50M + Leisure Pool $(1,070) $(1,109) $(1,075) $(1,039) $(1,060) 50M + Leisure + Fitness $ (994) $(1,031) $ (996) $ (958) $ (977) SUMMARY The 50M complex would provide an entirely new level of service to community groups and individuals in the three jurisdictions. The size and scope of the project would undoubtedly attract people from all age groups and would certainly lead to the facility becoming a popular destination. The 50M tank could be used for a combination of training and competitive events while the leisure tank would accommodate instructional and recreational programming. The additional capacity created by the 50M complex could mitigate the need or change the design of recommended new pools in one or more of the participating municipalities facilities what otherwise may be required to meet future aquatic and leisure needs caused by population growth. The fitness centre could offer new or alternative services to residents within reasonable travel time to the complex. More importantly, the fitness centre would also provide net 74

84 positive operating revenue that would offset a portion of the subsidy requirement of the aquatic aspect of the facility. Opportunities for Improvement As illustrated above, the community benefits associated with a major aquatic complex comes at a cost to taxpayers. Based upon a municipal management model and the assumptions described in this report, the 50 metre pool plus the leisure pool and fitness centre would result in a net operating shortfall of approximately $994,000 in year one, which is expected to reduce to approximately $977,000 by the end of the fifth year of operation. Taking into account the need for capital re-investment in the facility, the annual subsidy requirement would exceed $1.25M for each of the five forecasted years. There are a number of possibilities that could help improve the financial performance of the complex. These include the following considerations. Management Approach - the financial model presented in this report is built on a traditional municipal management approach. MOM could pursue a third-party management contract for the facility, which may result in a reduction in operating subsidy requirements. In other similar situations, contracting out has helped to reduce several expense items - with the most significant savings being realized in labour costs. Energy Savings - utility costs represent the second largest operating expense of the aquatic complex. Consequently, all potential opportunities to control the cost of energy should be explored. For example, LEED components added to the building could reduce energy costs by as much as 10%. This could lead to annual savings of up to $65,000. Pricing - revenues included in the financial projections are based upon the City of Mississauga s current pricing practices, adjusted to reflect a new level of service offered at the aquatic complex. While affordability is an important consideration when establishing prices for community services, there may be opportunities to raise certain fees without negatively influencing financial accessibility. 75

85 Conclusion The preceding sections of this report present the data and rationale that support the assumptions and financial projections (capital and operating) for the 50M aquatic complex under study. The background information is a combination of input from municipal staff, operating practices at existing Mississauga facilities, operating performances of comparable facilities and advice provided by operators of large leisure aquatic venues in other municipalities. The actual operating performance of the proposed aquatic complex would be influenced by design, management and operating decisions that would occur during the detailed planning phases of the project. Consequently, budget assumptions and forecasts could change in accordance with these decisions. 76

86 SECTION SIX NEED AND FEASIBILITY SUMMARY Summary of needs Milton s and Oakville s recreation master plans calls for the addition of a new 25 metre pool in each jurisdiction to address the population growth and pent up demand in both municipalities. Based upon information provided in the master plans as well as conversations with municipal representatives, it is very unlikely that the proposed 50 metre pool would be capable of meeting all the community demands arising from within each jurisdiction. Therefore, while the new long course pool would entirely meet the needs of the aquatic sport clubs in both Milton and Oakville, there would remain a certain degree of latent community aquatic demand even with the addition of a long course venue. Mississauga will seek to upgrade its pool supply and possibly offer one of the school pools over to the aquatic sports clubs. Additionally, the City may elect to re-purpose several of its school pools that are located in the southern regions of the municipality. The proposed location of the 50 metre shared pool is quite distant from these school facilities and therefore it would unlikely that displaced recreational swimmers lesson participants would elect to travel to the long-course venue. Consequently, Mississauga would be required to address the needs of these groups even if the proposed shared facility was developed. Based upon the provision standard suggested by the Aquatic Federation of Canada, the population base of Milton, Mississauga and Oakville would not support a 50M pool until the combined tri-municipal population increases by 25%. This population level is not expected to be achieved for least the next two decades. In summary the proposed 50 metre pool: would meet all of the current and future program requirements of the aquatic sport clubs in the three municipalities; would not meet the current and future community aquatic requirements of residents in Milton and Oakville; and would not meet the needs of swimmers displaced from re-purposed to pools in south Mississauga. 77

87 Necessary Conditions Analysis The consultants and the Committee examined and analyze the information presented in the preceding sections to determine the viability of the proposed 50 metre shared facility. To assist in the analysis and to format the studies recommendations related to a viable facility that would be developed and operated using a partnership model, the necessary conditions were employed as the analysis filter. The results of this analysis are presented below. Community Need While the new 50 metre venue would meet the needs of competitive sport clubs, there is not sufficient evidence that it would meet community aquatic requirements to the extent that each municipality could forgo other planned pool development projects. Location The preferred site is unencumbered by development impediments and would be a destination for competitive swimmers. However, the location is remote from the southern portions of Mississauga and Oakville which could represent a barrier to participation by residents from these municipal regions. Governance, Management and Ownership The perspective partners reached consensus on a mutually agreeable governance, management and ownership model. Mutually Agreeable Space Program The perspective partners agreed that the space program for the aquatic portion of the complex was reasonable and acceptable. However, Oakville and Milton raised concerns regarding the likely community benefit they would realize from the fitness centre. Capital Cost Sharing Formula The perspective partners reach consensus on a mutually agreeable capital cost sharing formula. Operating Cost Sharing Formula The perspective partners reach consensus on a mutually agreeable operating cost sharing formula. Benefits Based Value Each perspective partner raised concerns about cost of the facility relative to its ability to meet broad community aquatic requirements. At issue was a capital cost of $51M and an annual operating subsidy requirement in excess of $1M for a facility largely targeting the requirements of aquatic sport clubs. Although the clubs are an important cog in the support mechanism for sport development within the three municipalities, it is difficult to rationalize the value/benefit associated with spending considerable funds to service approximately 1,500 swimmers initially and up to 3,000 competitive athletes over time. 78

88 Political Support Initially, elected officials were supportive of the project. However, this support waned as the capital and operating costs of the project became apparent as compared to the number of swimmers served. Readiness Each perspective partner was interested and prepared to engage in the partnership should the feasibility study provide a positive result. However, all three municipalities were involved with aquatic developments or redevelopment with in their jurisdictions and other competing capital had already been initiated. Therefore, the timing of the shared 50 metre project was somewhat problematic. Conclusion In a view of all concerned, the shared 50 metre pool complex would be a welcomed addition to the aquatic facility inventory serving the needs of swimmers in the western greater Toronto area. However, the capital and operating costs of the facility coupled with a relatively narrow target audience that would be served by the new complex resulted in a decision that the project was not viable. The perspective partners agreed that the process undertaken to examine the feasibility of the complex represented a useful template that could be employed to determine the viability of future joint venture projects. Recommendations Recommendation #1. That the 50 metre shared aquatic complex project not be pursued at this time. The community benefits derived from the proposed project would be insufficient to justify the significant capital expenditure to construct the joint facility. Additionally, the ongoing annual operating subsidy failed to meet the value/benefit test. Recommendation #2 That the perspective partners monitor changes in the local community aquatic requirements and the needs of local aquatic sport clubs to determine if and when market conditions may improve to the extent that the viability of the 50 metre pool project could be re-addressed. Recommendation #3. That the three municipalities work with and support their aquatic sport clubs and where possible, reasonably accommodate their facility and program requirements in new or reconfigured aquatic facilities. Recommendation #4. That the three municipalities use the necessary conditions template to determine the viability of future joint venture projects. 79

89 APPENDIX A PROPOSED PROGRAM SPACE REQUIREMENTS Proposed Program Space Requirements Room Room Area Component Notes: Sq Ft Sq Ft Aquatic Centre 57,560 Water area 16,600 Competitive pool 11,200 52Mx20.4M x2m to 5+M deep Community pool lanes x25m + leisure pool Whirlpool 400 Seating 9,000 Spectator bleacher 6000 Retractable or temporary On deck, retractable or Competitors 600 bleacher 3000 temp Deck (Competitive Pool) 5,100 Storage 400 Deck area 4700 Diving platforms +boards Deck (Community Pool) 8,760 Steam 200 Sauna 200 Parents viewing 800 Deck area 7560 ratio water to deck = 1:1.4 Change Facilities 8,300 Family (universal) 1500 Female 3000 Male 3000 Team Rooms (4 x 200sf) 800 Aquatic Support 1,500 Deck Staff change 450 Guards lunchroom 150 Guards / First aid 250 Aquatic Manager office 150 Timer's booth 500 On-deck classroom Aquatic Services 8,300 Filtration 2000 Chemical storage 300 Pool HVAC & Boiler 6000 Program Rooms 3,100 Athletes Marshalling 2000 Multi-purpose room Storage 400 Kitchen (incl storage) 400 Meeting rooms (2)

90 Room Room Area Component Notes: Sq Ft Sq Ft Fitness Centre 7,480 Fitness / weights 4000 Aerobic / dance 2000 Storage 200 Office 180 Testing 100 Mechanical 1000 Administration 1,850 Reception 200 General office 400 Staff offices (3) 400 Photocopier room 150 Storage 200 Program office 200 Maintenance office 150 Office Staff lunchroom 150 Public Spaces 5,700 Lobby 4000 Public washrooms 1000 Snack Bar 300 Snack Bar Storage 100 Vending machines 300 Building Services 3,100 Staff change / lunch 150 Storage 200 Receiving / Waste 300 Electrical 300 Sprinkler 150 Mechanical 2000 Net Area 78,790 Walls, partitions, circulation - 25% of net area: 19,698 Gross Area (sq ft) 98,488 81

91 APPENDIX B DETAILED CONSTRUCTION COSTS Preliminary Estimate of Project Costs Dec-08 Proposed 50 Metre Pool Aquatic Centre : Mississauga Oakville Milton Construction Costs GFA(sf) Unit Cost Sub-Total Est. Total % of Total 1 Building Shell 98, $13,790, % Sub Structure 12 1,182,000 Structure 30 2,955,000 Exterior Enclosure 98 9,653,000 2 Building Interiors 98, $11,032, % Partitions & Doors 24 2,364,000 Finishes 18 1,773,000 Fittings & Equipment 70 6,895,000 3 Mechanical 98, $5,614, % Plumbing & Drainage ,000 Fire Protection 3 295,500 Heating Ventilation Air Conditioning 41 4,038,500 Controls 3 295,500 4 Electrical 98, $2,758, % 82

92 Preliminary Estimate of Project Costs Dec-08 Proposed 50 Metre Pool Aquatic Centre : Mississauga Oakville Milton Construction Costs GFA(sf) Unit Cost Sub-Total Est. Total % of Total Service & Distribution 13 1,280,500 Lighting Devices Heating 12 1,882,000 Systems and Ancillaries 3 295,500 5 Site Work 98, $3,447, % Site Development 27 2,659,500 Mechanical Site Services 4 394,000 Electrical Site Services 4 394,000 6 Contractor's General Requirements 98, $2,265,500 7 Contractor's Fees 98,500 9 $886,500 8 TOTAL ESTIMATED CONSTRUCTION COST $39,794, % 9 Design Contingency 98, $3,970,000 10% 10 Construction Contingency 98, $1,940,000 5% 11 Escalation Contingency 98, $0 12 ESTIMATED CONSTRUCTION COST& CONTINGENCIES 83

93 Preliminary Estimate of Project Costs Dec-08 Proposed 50 Metre Pool Aquatic Centre : Mississauga Oakville Milton Construction Costs GFA(sf) Unit Cost Sub-Total Est. Total % of Total 13 Furnishings and Equipment $1,990,000 5% 14 Fees, Permits and Expenses $3,521,000 9% 15 Project Contingency $0 16 TOTAL ESTIMATED PROJECT COST 2008 Dollars $51,215,000 84

94 85