HomeMy WebLinkAboutCS-33-95Report #: CS -33 -95 File #:
Subject: NEWCASTLE MEMORIAL ARENA BOARD
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee recommend
approval of the following FORTHWITH:
1. THAT Report No. CS -33 -95 be received;
2. THAT Council approve the request of the Newcastle Memorial Arena Board of
Management for a one time grant to purchase a new ice resurfacer FORTHWITH;
3. THAT the necessary funds be drawn from the Impact/Hydro Escrow Reserve Fund, account
#1110 - 00196 -0000 to an upset limit of $55,000.00;
4. THAT the trade -in value of the existing equipment be used to offset the new purchase; and
5. THAT the Newcastle Memorial Arena Board of Management be advised of action taken by
Council.
1.0 BACKGROUND:
1.1 At the September 25,1995 Council meeting, members received correspondence (D18) from
the Newcastle Memorial Arena Board requesting Council to consider purchasing a
replacement ice resurfacer to be used at the Newcastle Village Memorial Arena.
1.2 The existing resurfaces is a 1979 Zamboni and staff agree that replacement of the
equipment is required as the anticipated lifespan (15 years) for this machine has been
exceeded.
1.3 This past summer staff was approached by Mr. Jones representing the Board of
Management, for assistance in resolving this issue and arrangements were made to have a
unit available for use to the arena as a loaner which enabled the Board to continue its
summer ice operation.
RICIR". ELL
I-IR RECYCLE
1HI5 AS ppIMED ON REGYCtED VAPEq
../2
REPORT CS -33 -95 "2- OCTOBER 2, 1995
1.4 Staff also attempted to acquire a local sponsor for the purchase of an ice resurfacer in
exchange for advertising rights on the equipment, however, we were unsuccessful in this
endeavour.
1.5 Through various discussions, it was suggested by staff that the Board of Management
approach Council and request an interest free loan for the purchase of the equipment. (This
option has been made available to other organizations requesting assistance in the past.)
1.6 After consideration, the Board would prefer the Municipality to purchase the equipment, as
it is felt repayment would be a hardship and impede the Board's ability to meet ongoing
needs in operating the arena, as outlined in Mr. Jone's letter (Attachment #1).
2.0 COMMENTS:
2.1 Should Council approve the recommendations in report CS -33 -95 delivery of the new ice
resurfacer could be anywhere from three to six months. In the interim however,
arrangements to retain the loaned resurfacer until delivery of the new unit will be made.
2.2 In discussion with the Treasurer, it was recommended that the Impact/Hydro Escrow Reserve
Fund, account #1110 - 00196 -0000 be accessed for funding of this purchase.
2.3 This is a significant expenditure and as a result staff will report back to Council after
reviewing the Building Services Program for the purpose of developing specific guidelines
regarding various expenditures and further establish capital replacement programs for the
various volunteer boards where similar expenditures could be planned and budgeted for.
JPC:sa
Reviewed by,
W. H. 8tockwell,
Chief Administrative Officer
ATTACHMENT NO.1
Council Direction TO REPORT NO. CS -33 -95
D -18
NEWCASTLE AREAN BOARD
St OF MANAGEMENT,
Ltj A X11 103 CAROLINE ST.,
NEWCASTLE, ONTARIO.
LIB 1H1.
THE COUNCIL
MUNICIPALITY OF CLARINGTON,
40 Temperance St.,
Bowmanville, Ontario.
L1C 3A6. September 20, 1995.
Dear Council Members:
Subject -Arena Equipment
We are writing to Council concerning our ice resurfacer. The
equipment we have been using up to April 1995 was built in 1979,
has exceeded normal life expectancy for this type of equipment and
requires repairs that far exceed present value. For these reasons
it was sold to a dealer for scrap. This leaves us in the position
of requiring new equipment immediately.
A used unit would cost between $25,000.00 and $35,000.00, but
unfortunately none are presently available and apparently there is
a waiting list for used equipment. A new unit will cost
approximately $55,000.00 and should last approximately fifteen
years.
To date we have been very self- sufficient and have always been able
to
meet our operating expenses. In 1993 we bought a de- humidifier
at a cost of $3,000.00 and last year a new compressor costing
$14,000.00; but the cost
of a resurfacer even if spread over four
years would be a hardship and impede our ability to
meet the
ongoing needs of the arena in the areas of repairs, equipment and
other operating costs.
As already pointed out we feel we have managed revenues very well
to date, always meeting our
obligations and managing to have
surplus funds at the end of each year, but for the
reasons outlined
we are requesting the Municipality purchase the resurfacer for
us.
We are presently using a unit which was lent to us by a ; 4- ..
we understand it is being sold;
therefore there is s!o eur�enc�to
our y
request.. ,�;, ........
y ... _ I
Your consideration is appreciated. ; ;
- ;! "Sr i_ T0,^
Yours truly, - 7�
For wcastle Arena Board
of Ma agement . - - - - -- - - -- -- --____
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