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Home My WebLink AboutCSD-03-02 ..~". ~ .,.'" ,"- { !t CI~gron REPORT COMMUNITY SERVICES DEPARTMENT Meeting: General Purpose and Administration Committee Date: February 18, 2002 Resolution ~/J-z;/55o.:2... Report #: CSO-03-02 File#: 101 By-law #: Subject: SOUTH COURTICE COMMUNITY PARK - BUDGET Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report No. CSD-03-02 be received; and 2. THAT Council approve phasing of the indoor soccer component of the South Courtice Community Park Project; and 3. THAT the revised South Courtice Community Park project budget be approved at eleven million, fifty-nine thousand dollars ($11 ,059,000); and 4. THAT approximately six hundred thousand ($600,000) from 2001 anticipated surplus be used to finance the shortfall in the Indoor Recreation Development Charges Reserve Fund relating to the Courtice Community Complex Fitness expansion; and 5. THAT Sherry Bonanza, President, The Darlington Soccer Club Inc. be advised, FORTHWITH. Submitted I:i . Jos h . Caruana ~/~?" of Com Submitted by: / Nancy a 0 Oirector of Finance A f . L/l I ,,- Reviewed bYi-) {dActC \-- --~ LkJ lc Franklin Wu Chief Administrative Officer JPC/NT lOOt REPORT NO. CSD-03-02 PAGE 2 1.0 BACKGROUND 1.1 Staff report CSD-08-01 received approval of the Master Plan concept and authorized staff to proceed with the detail design of the South Courtice Community Park project. 1.2 Subsequently, staff in conjunction with the Chief Administrative Officer and the Director of Finance reviewed funding scenarios for this project. As a result, staff is recommending that Council consider phasing the indoor recreation component of this project. 1.3 Essentially, it is recognized that the critical component of this facility is the twin pad ice surfaces. The indoor soccer component is a viable project however the need for additional ice surfaces is clearly a priority. 1.4 The preliminary budget for the South Courtice Community Park (indoor component) has been established at fourteen million, fifty-nine thousand dollars ($14,059,000). This figure represents thirteen million dollars ($13,000,000) for construction and one million, fifty-nine thousand dollars ($1 ,059,000) for the architectural/project management fee and equipment and furnishings. 1.5 Should Council approve phasing the indoor component of the project (specifically the indoor soccer facility) our consultants advise that three million dollars ($3,000,000) could be realized in savings to the construction portion of the project budget (attachment #1). 2.0 DARLINGTON SPORTS CENTRE 2.1 Further, in consideration of a phased development of the structure, staff also defers any recommendations related to the decommissioning of the Darlington Sports Centre, at this time. 2.2 Although this initiative appears viable, it is noteworthy, that the overall project budget would require a five hundred thousand dollar ($500,000) supplement to the South Courtice Community Park Budget. Timing of this additional expenditure does not warrant further consideration at this time. 2.3 As such, the decommissioning of the Darlington Sports Centre will be deferred until such time, that a subsequent phase of the South Courtice Community Park is considered or when the Municipality considers developing an indoor recreation project in Newcastle Village or Bowmanville. 1002 , .. -.- ,~ , . REPORT NO. CSD.03-02 PAGE 3 3.0 FINANCING 3.1 The Director of Finance has prepared the Financing section of the report and will identify the short term and long-term effects of the phasing and deferral as they relate to the Development Charge Reserve Fund and the Municipality's Capital Budget programs. 3.2 As Council is aware, a large portion of this project is eligible for financing from development charges. However, as the Courtice Community Complex expansion has just been completed there is currently a shortfall in funds in the Indoor Recreation Development Charges Reserve Fund. 3.3 As identified in Report CS-05-01, it is proposed that the South Courtice project be debentured, By phasing the indoor soccer component, this will allow for a 15- year debenture for approximately twelve million, six hundred thousand ($12,600,000) (includes $10,277,000 development charges share of construction and $2,377,638 for land and design fees from 2001 capital) resulting in approximate annual cost of 1.28 million. Without phasing, the debenture would have to extend beyond the 15-year time frame (up to 20 years). It is necessary to include the land and design costs because, as mentioned above, there are insufficient funds in the indoor recreation Development Charges Reserve Fund to cover this expenditure. It should be noted that the reserve fund will continue to have shortfalls in years that growth is below target levels identified in the DC Background study, However, it is anticipated that these shortfalls will be corrected over time as growth occurs. 3A Even with including the land and design costs for South Courtice project in the debenture principle amount, there still exists a deficit in the Indoor Recreation Development Charges Reserve Fund, There remains a shortfall of approximately six hundred thousand ($600,000) resulting from the expansion of the Courtice Community Complex Fitness component. 3.5 Although, 2001 financial statements are not completed, there will be a surplus from 2001 due to the higher that anticipated supplementary taxation revenue. In order to resolve the shortfall in the indoor recreation development charges reserve fund, it is recommended that approximately six hundred thousand ($600,000) from the anticipated 2001 surplus be used to finance the remaining shortfall from development charges for the Courtice Complex expansion. 1003 . , REPORT NO. CSD-03-02 PAGE 4 3.6 Clearly, this six hundred thousand ($600,000) is eligible to be financed from development charges. However, as the development charges will be supporting its share of the South Courtice facility through a 15-year debenture, it would be many years before the shortfall would be recovered. The advantage to this recommendation would be to increase the Municipality's 1 O-year historical service level average for indoor recreation for the next development charges background study and policy. This will allow for more effective recovery of debenture costs for South Courtice in future years. 4.0 COMMENT 4.1 It should be recognized, that the public participation process for development of the Master Plan was well attended. Representatives of The Darlington Soccer Club Inc. were very helpful and supportive of the overall initiative, particularly the indoor soccer component. 4.2 With this in mind, the President of The Darlington Soccer Club Inc. was contacted and informed of the pending staff report and recommendation. 1004 ~. , . Hl-oS'1l2IFRI) 10:54 8AftRV'BftVAN ASSOCIATES 119911 Limited A..l\itltlS Engl"lliIrB I.andJCallOA!cI1It.. Pr<>ioctM._ (if) 11 StonloyCaort Unit I 'MIltbv. OmlriD Canedl L1N BP9 Tele: !I05.B6Il-5252 Torolllll: !I05.42H495 I'll' 1105-8&&.525& .....il:_lllJ>.;lrc!.>nm.a>m lWIW.bba-al'Ct1enoam 01143LD1I020Z rev P~d9"l.wpd BARRY BRYAN ASSOCIATES ATTACHMENT # 1 TO REPORT CSD-03-02 TEL:905 666 5256 P.ool February 8, 2002 p<C~ITWIE@ FFR 0 8 2002 Municipality of Clarington 40 Temperance Street Bowmanville, Ontario L1C 3M Atlentlon: Mr. Joe Caruana, Director of Community Services Re: Proposed Coat Savings for Revised Building Progl1lm South Courtice Commllnlty Park, Mllnlclpallty of Clarington Project No. 01143 Dear Sir: AJiJ you are aware, dUrlng our recent design development mee~ngs. we have been reviewing a revised building program and associated cost savings for the above noted project. The revised building program would result In reducing the overall Phase 1 building size through the deferral of the construction of a third pad curren~y designed as an Indoor soccer faclllty. Refer to Master Site Plan Revised February 7, 2002 (attached) which illustrates the proposed revised building layout. The revised Phase 1 building design would be reduced In floor space, but would incorporate features for future soccer or ice !Irena additions in the same general arrangement as envisioned in the Masler Plan. Features to accommodate future soccer and/or ice pad adclitlons retained In the current design include mechanical rooms sized for future equipment, refrlgera~on room sized for additional compressors; and. Infrastructure systems (e.g. electrical service. refrigeratIon header etc.) sized for future expansion and readily expandible with minimum dlsruptlon to the existing facilities. Based on the above approach. wa believe the bUilding constructlon budget could be reduced by $3.0 M. This cost reduction is based on preliminary concept drawings prepared to date. I trust the above is adequate to assist with your further discussions and project planning. uestions in the meantime, please call me. DLB/cb Encl. 1005