PERC Business Case Final Report August 25-12

7/30/2019 PERC Business Case Final Report August 25-12

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District of Vanderhoof

and Electoral Area F

Business Case

for anAquatic Centre

September 2012

Professional Environmental Recreation Consultants Ltd.www.perconline.com


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Table of Contents

1. Introduction 12. Background 2

Review of Feasibility Study 2 Demographics 2 Aquatic design trends 3

3. Benefits 4 Background and Context for a Statement of Need 4 The Benefits Based Approach 4 The Benefits 4 The Service Objectives 5 Summary of Public Good Attributes of an Aquatic Complex 9

4. Estimated User Statistics 105. Proposed Facility 116. Capital and Operating Costs 137. Tax Implications 148. Sources of Additional Funding 15


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1. INTRODUCTION

In 2010 Professional Environmental Recreation Consultants Ltd. (PERC) was retained bythe District of Vanderhoof to prepare a Community Aquatic Facility Feasibility Study.Assistance in the project was provided by Bruce Carscadden Architect Inc. and Venture

Pacific Construction Management Ltd. The report was completed and presented to theVanderhoof officials in the summer of 2010.

In July 2012 Professional Environmental Recreation Consultants Ltd. (PERC) was againretained to prepare a business case in preparation for a referendum being considered forthe fall of 2012 to include the District of Vanderhoof and the Bulkley-Nechako RegionalDistrict Electoral Area F.


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2. BACKGROUND

Review of the Feasibility Study process

During the feasibility project PERC consultants met with a number of public groups and

stakeholders in and around the community of Vanderhoof. The list of these groups is asfollows:

District of Vanderhoof senior staff Vanderhoof Parks & Recreation staff School District #91 Secretary Treasurer and Board Chair St. Johns Hospital representatives Elks Club RCMP Staff Sergeant and two Corporals District of Vanderhoof Council Bulkley-Nechako Regional District Directors from Fort St. James and Electoral

Area F

Arena ice users Vanderhoof Chamber of Commerce Vanderhoof Pool Committee General Manager and Owner of Nechako Lumber, L&M Lumber and Premium

Pellet

Groups of interested residentsA questionnaire was also developed which was available to be completed and returned tothe consultants.

Demographics

The District of Vanderhoof population had been decreasing in recent years. In 1996 thepopulation was 4,401, in 2001 it had dropped to 4,390 and in 2006 it had further droppedto 4,064. The Statistics Canada 2011 Census shows an increase of 10% from 2006 with apopulation of 4,480.

Electoral Area F had experienced the same trend between 1996 and 2006. The populationdecreased from 3,389 to 3,384 from 1996 to 2001 and had a further drop to 3,137 in2006. Statistics Canada 2011 Census shows an increase of 18% from 2006 with apopulation of 3,702.

The total population of the District of Vanderhoof and Electoral Area F as reported byStatistics Canada 2011 Census is 8,182, an increase of 981 or 14%. Fort St. James andFraser Lake both reported increased population numbers in 2011. Fort St. Jamesincreased by 25% while Fraser lake increased by 5%.

This demographic information is important as it can be expected that residents of all ofthese areas will use an aquatic facility in Vanderhoof with differing regularity.


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Vanderhoof senior staff has indicated that the substantial increase in population withinthe Bulkley-Nechako Regional District from the 2006 census to the 2011 census may bethe result of an incorrect count in 2006. They believe the 2011 census information iscorrect and that the growth between 2006 and 2011 was moderate and not near the 10%

indicated in the 2011 census.

Aquatic Complex Design

After an analysis of Aquatic Trends it was agreed that the inclusion of a leisure pool inthe aquatic complex was important. Statistics show that approximately 65% of aquaticfacility users spend their time in water under five feet in depth. The depth of water inleisure pools can range from zero depth to four feet. Leisure pools include a number ofelements that are fun for children and the young at heart as well as elements that arebeneficial for the elderly and those requiring rehabilitation from injuries or the agingprocess.


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3. BENEFITS OF AN AQUATIC COMPLEX

Background Context for a Statement of Need

While there has been lots of demand expressed for an aquatic complex for Vanderhoof

and the surrounding area, demand by itself would not trigger its implementation. Theremust be need to add an aquatics complex demonstrated by an analysis of public good. Itmust be in the interests of all citizens to have an aquatics complex in their community,not just those that would use it and benefit from an aquatics facility directly.

Some examples of need which recreation can be used as a vehicle in meeting include:

Using recreation to foster a sense of community identity, pride, spirit (throughhosting special events and spectators at sports events etc.)

Using recreation to foster volunteer leadership in the community (e.g. involvinglocal citizens in operating community centres)

Using recreation to mix generations and other sub-groups in the community(thereby reducing isolation and alienation by including all members of acommunity in activities so that they have a sense of belonging)

Helping teens through that difficult stage in their lives (using recreation to helpteens understand about team work, leadership, peer group pressure, learning lifeskills)

In summary, public investments in recreation services are justified not just on the basis ofdirect benefit to users, but also indirect benefit to the entire community. This indirectbenefits is sometimes called need, and can also be referred to as public good; a collective

good that is measured as indirect benefit to all, rather than simply direct benefit to users.

The Benefits Based Approach

The benefits based approach recognizes that public goods are focused on indirect benefitto all citizens rather than direct benefits to users of service. In other words, the District ofVanderhoof parks and recreation services, in addition to providing some direct benefit tousers, must clearly demonstrate that there is some spin-off benefit to the entirecommunity, even if some community members havent used the service. This indirectbenefit to all citizens, from which they cannot escape, is sometimes called public goodand justifies public sector involvement in the delivery of the service, if such involvement

is needed in order to realize the good. In the benefits based approach, decisions arefocused on achieving the greatest amount of public good or indirect benefit at the leastpossible cost to the taxpayer.

The Benefits

In recreation need feasibility analysis, two categories of benefits which could be labeledas goals are as follows:


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To use leisure services to foster a sense of community, spirit, pride and culture

District sponsored parks and recreation services can and should be used as a vehicle toconnect local citizens more positively to their community and enhance their sense of

comfort with it. Where such initiatives require tax support, it will be considered in termsof the amount of public good created in relation to the cost to the taxpayers. The successof such initiatives will be measured in their ability to clearly benefit all citizens. TheDistrict helps connect people to their community in a positive way, thereby fostering asense of community health. Community is a concept that exists on a variety of levels.Ones community can be their neighbourhood or their town, or the region in which theylive. Or, it can be a community of interest that does not have geographic boundaries.

To use leisure services to foster growth of individuals to reach their full potential

District sponsored parks and recreation services can and do help individuals to grow

physically, emotionally, morally and creatively and help them to be as good as they canbe. Where tax support is needed to ensure such success, it will be considered within thecost/benefit framework referred to above. Healthier, more responsible citizens will bebetter contributors to community life, better leaders in the community, will require lesssocial service, health service, and justice service supports and therefore, there is clearbenefit to the entire community.

Service Objectives

The following service objectives are consistent with the two benefits headings describedabove and apply to an aquatic complex. It should be noted that an aquatic facility is moreinclusive of age, sex, ethnicity and ability than almost any other type recreation facility.That is why they are used by a broader cross section of residents than any other type ofrecreation facility.

It is also worth noting that there a very few communities in the province with apopulation over 10,000 that do not have an indoor pool. The only ones over 10,000 thatdont have a public indoor pool are those within a very short distance of a neighbouringcommunity with an indoor pool.

To help the reader, the table on the next page provides more detail of the rationale.


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Goal: Foster a Sense of Community

Public Good Objectives to Foster a Sense of CommunityService Objective Implications for an Aquatic Complex

Attract and Retain Quality Employees

Local employers provide the economicstimulus that supports the community andis a significant reason for its existence.During the stakeholder meetings all of themajor employers indicated the need forsuch a facility to attract and retain qualityemployees. To attract and retain employeesthe District should provide facilities andprograms to contribute to healthy andmeaningful lifestyles for individuals andfamilies.

An aquatic complex offers a wide variety

of programs including recreational swims,skill development, sport training,rehabilitation and therapy, fitness,community events, sports competitions andleadership training. It is a gathering placefor the community where people can meettheir friends, make new friends and enjoyhealthy fun activity. It providesemployment opportunities particularly forteens that become certified as instructorsand lifeguards. An aquatic complex

provides a greater variety of programmingand covers a broader range of age groupsthan most other recreational facilities.Communities without an aquatic facilityare at a disadvantage when they are tryingto recruit new employees andprofessionals.

Special Events

Special events can contribute to a feeling ofcommunity identity and spirit. Thereforethe District should be involved in

sponsoring special events necessary toensure promotion of this objective.

Aquatic facilities can plan themed swimsessions for families, specific age groups aswell as everyone welcome events. These canbe for special holidays or any other time

using a theme making the session special.They also can be used for swim meets.

Support to Local Groups

Local clubs, groups and agencies are andwill be organizing and sponsoring leisureopportunities. The people doing things forthemselves aspect of such groups issocially worthwhile and desirable. TheDistrict should support such groups in theirefforts. Support may occur in a number ofways, including subsidized access to

facilities, assistance in leadership training,provision of specialized equipment or theprovision of operating grants.

The groups most likely to be involved inthis type of partnership with the Districtwould be a swim club, synchronizedswimming club, diving club or water poloclub. There are service clubs, schools,churches and others who may well beinterested in using the aquatic facilities fora special leisure opportunity that theywould take responsibility to host and may

include the broader community.

Exposure to Sporting Events

Community identity, spirit and culture canbe fostered through the environmentgenerated by spectators at athletic events.In such events, sport can be closely linked

Aquatic facilities generally have a swimclub which will want to host swim meetsfrom time to time. The same holds true forsynchronized swimming, diving and waterpolo. There is even underwater hockey as


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with community identity and pride.Because of this, opportunities should beprovided for spectator experiences atathletic events.

another possibility to host events thatspectators can enjoy.

Social Functions

Because social functions are a valuablevehicle to use in developing communitycohesion and identity, the District shouldensure that such opportunities exist.

Virtually all activities scheduled at an

aquatic facility provide an opportunity forsocial interaction. Every session at the poolinvolves several people, often including awide range of ages and culturalbackgrounds.

Family Oriented Leisure Services

The family unit is an integral buildingblock of community growth. Opportunitiesshould be provided for families to pursueleisure as a family unit.

Aquatic activity lends itself to familyparticipation as skill level is not importantfor families to enjoy the water together.The leisure pool increases the variety ofthings families can enjoy.

Integrating Generations and Sub

Groups

Community growth can be fostered throughincreased contact between people ofvarying age groups within the community.The more contact and interchange betweenseniors and younger adults and children,the greater the potential for communitygrowth. Therefore, in the provision of

leisure services, attempts should be madeto provide such contact and interchangebetween seniors and younger residents witha view toward transmitting cultural heritageacross the generations.

Community growth can further be fosteredthrough an integrative mixing of variousethnic groups so that each betterunderstands and appreciates the differencesand strengths of the other. Multicultural

recreation services can be used as a vehiclein making the community more cohesive.

The nature of aquatic facility programmingand scheduling establishes an excellentopportunity to bring different generationsand sub groups together. The buoyancywater provides is a great equalizer in manyways. People with disabilities can morereadily enjoy aquatic activities with ablebodied people than in most other activities.The same holds true with inter generational

opportunities. Older adults who havemaintained a swimming lifestyle canexercise with younger adults quitecomfortably. The opportunity to provideinter cultural themed everyone welcomeswimming sessions offers the chance forthe sharing of cultural differences.

Goal: Foster Growth of the IndividualPublic Good Objectives to Foster the Growth of the Individual

Service Objective Implications for an Aquatic Complex

Fitness (Well Being)

Fitness in this context, is used broadly as aSeveral programs are typically included inan aquatic facility to provide opportunity


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synonym for wellness, and refers to mentaland emotional, as well as physical fitness.The fitness level of every resident of thecommunity should be increased at least to apre determined minimum level with

opportunities available for progress beyondthis point.

for residents to improve their fitness levels.These include aqua fit classes, deep wateraqua fit classes, length swimming and avariety of games such as volleyball andbasketball playing in waist deep water.

Pre-School Leisure Opportunities

An opportunity should exist for every pre-school aged child to participate with otherchildren in a variety of leisure experiences,in order to:

Expose the child to social settings Foster gross motor development Provide a generally happy and

satisfying atmosphere where growth

can occur Teach basic safety skills and attitudes

Programs such as parent and tot designedfor children six months to one and a halfyears old, tiny tots for children one and halfto two years of age and aqua ducks forchildren aged two and three years old arestandard in most pools. Pre-Schoolprograms for three to five year olds followin the progression to school age programs.These programs contribute to all of the

objectives listed.

Basic Leisure Skill Development for

School Aged Children

A wide variety of leisure pursuits in suchareas as sport, performing arts, visual arts,outdoor nature oriented skills, and hobbies,should be provided for school agedchildren in order to:

Provide exposure to skills which mayform the basis for enjoying lifetime

leisure activities Contribute to gross motor and fine

motor physical development

Provide social settings in which social,moral and emotional growth can befostered

Provide the basis for leisure education(i.e. the teachings of the benefits ofand wise use of leisure time)

Many schools organize swimming lessonsfor school age children often in partnershipwith the Parent Advisory Council. Theselessons generally provide each child withthe basic skills necessary for them to besafe around the water. Often parents willsupplement these lessons with furtherclasses through the recreation department.Participation in family swimming sessions

contributes to the childs comfort in thewater and enjoyment of the activity. Theswimming experiences contribute to eachof the objectives listed.

Advanced Leisure Skill Development for

School Aged Children

Opportunities should be provided for thosechildren who wish to further develop theirinterest and skills in a wide variety ofleisure pursuits beyond the basic level.

The aquatic program provides opportunityfor school age children to progress through

a wide range of programs developing theiraquatic skills and possible leading tolifeguard and instructor certifications.

Social Opportunities for Teens

The maturing from youth to adult, whichoccurs during teenage years, is often acritical time in the life of an individual. It is

Advanced aquatic programs after theregular swimming lesson progression offerteens opportunities to develop lifelongskills which help them to realize the


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also a time when individual difficultiesmay result in severe social problems.Hence, opportunities should be providedfor teens to:

Learn about themselves and how theywill react to various social settings andpressures

Develop positivesocial/emotional/moral skills,principles and convictions

Develop positive leisure lifestylespatterns which will remain with themthrough adulthood

objectives listed. As well as achievingcertifications for lifeguarding andinstruction of swimming lessons there areleadership skills developed through theseprogressions. It is not uncommon for teens

having gone through these aquaticprogressions to become involved inleadership roles in a wide range of otherareas besides aquatics.

Basic Leisure Skill Development for

Adults

Opportunities should be provided in a widerange of leisure endeavors and hobbies foradults who wish to be exposed to suchendeavors and learn some basic skills ineach.

Aquatic facilities offer swimmingprograms for adults ranging from learningto swim through to stroke improvementand involvement with master swim clubs.

Advanced Leisure Skill Development for

Adults

Opportunities should be provided for thoseadults who wish to further develop theirinterests or abilities in a wide variety ofleisure pursuits.

The opportunity exists for adults to achievelifeguard and instructor certification

through the programs offered by theaquatic facility. Some may even choose tobecome certified to coach any of theaquatic sports supported by the aquaticcentre.

Opportunities for Seniors

Opportunities should be provided for seniorcitizens to participate in the leisureactivities of their choice in order to:

Maintain overall fitness levels Maintain social contacts and

continue to be involved in socialenvironments

Provide a continuing sense of worthand meaning of life throughcontinuing personal growth

Seniors have become more familiar withleisure opportunities in recent years and theaquatic facilities have been one of theirmain choices to meet their needs. Manyparticipate in regular sessions with a mix ofadults and seniors and some chose to

participate in sessions designed specificallyfor seniors. The physical exercise is theinitial reason for participation but the timespent in the hot tub, sauna and steam roombecomes equally important as social time.The after activity coffee time is anotherimportant part of this regular routine.

Leisure Education The aquatic centre becomes a focal point of


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All residents should be generally educatedas to the best use of leisure time and thebenefits (e.g. growth and fulfillment) thataccrue from participation.

a community with a significant number ofresidents making use of the facility. Theinformation that is disseminated from thefacility about the program offeringsthrough mailings and newspaper articles is

a great educational tool in itself.

Summary of Public Good Attributes of an Aquatic Complex

In summary, an aquatic complex has many attributes that make it ideally suited as alifetime pursuit that is worthy of public support. They include:

It has a low threshold cost expensive equipment is not required to use a pool It does not require specific athletic prowess, but has large health benefits Aquatics is universal in nature There is benefit from organized year round programming.


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4. ESTIMATED USER STATISTICS

The consultants have established a formula for calculating the approximate number ofswims per year a typical community can anticipate. The formula is the result of analyzingexisting aquatic facilities attendance statistics for all categories of use including:

Recreational swims Skill development Sport training Rehabilitation and therapy Fitness Community events Sport competitions Leadership training

On average a community can anticipate approximately six swims per capita each year.For the purpose of the District of Vanderhoof and Bulkley-Nechako Regional DistrictElectoral Area F calculations we have use six times the combined population of these twoareas. It can be expected that residents of Fort St. James and Fraser Lake will also use theaquatic facility on a somewhat less frequent basis. We have assumed a conservativenumber of two swims per year per resident for these two areas. The rest of the ElectoralAreas will likely use the facility on an even less frequent basis. The consultants havechosen to use 60,000 swims per year in their estimates of revenue including all of thecategories listed above. While this is a prudent estimate that is based on a great deal ofexperience, it can be considered to be conservative for the sake of a referendumcampaign.


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5. PROPOSED FACLITIY

During the stakeholder meetings in preparation for developing the feasibility study allparticipants were asked what they would like included in an ideal aquatic facility forVanderhoof and the surrounding area. All of this information was analysed and some

conceptual sketches were prepared for review by the stakeholders. Estimated capital costswere calculated for each concept. A preferred option was agreed to with considerationgiven to ensuring the best possible facility for a price that would be acceptable to taxpayers.

The preferred facility includes four 25 metre lanes with a separate leisure pool. Theleisure pool would have a separate mechanical system allowing the water temperature tobe kept slightly warmer than the main pool. The architectural program summary is listedbelow:

Public Spaces (1,000 square feet)

Public washrooms Lobby, viewing and entry

Aquatic Spaces (7,000 square feet)

Four lane 25 metre pool (2,400 square feet) Leisure pool (1,500 square feet) Whirl pool (150 square feet) Steam room or sauna (150 square feet) On deck viewing

Activity Spaces (4,800 square feet)

One fitness space (1,800 square feet) Three multipurpose rooms (3 @ 800 square feet each)

Change Rooms (2,600 square feet)

Mens change room Womens change room Universal change room

Administration and Control (500 square feet)

Administration Lifeguard/ instructor room and first aid

Service and Support Spaces (800 square feet)

Mechanical spaces on two levels Pool storage Janitorial office and closets

A concept drawing of the facility appears on the next page.


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6. CAPITAL AND OPERATING COSTS

The capital cost of the preferred option for an Aquatic Complex in Vanderhoof aspresented in the 2010 Feasibility Study was $10,167,375. The District of VanderhoofFinance staff has factored in inflation to bring the cost to $12,000,000 in 2012 dollars.

The consultants analysed the Statistics Canada 2011 Census information and comparedthe data with that of the Statistics Canada 2006 Census information. The population ofVanderhoof has risen 10% while Electoral Area F has grown by 18%. Other jurisdictionsthat are likely to use a new aquatic complex have also shown growth since 2006. As aresult of this growth the consultants have revised the estimated number of annual swimattendances reported in the 2010 Feasibility Study from 47,500 to 60,000 swims per year.The increased attendance will increase revenue proportionately. It is also likely that thefees and charges included in the 2010 Feasibility Study will increase in the 2012 scenarioto keep in line with other facilities in the broader area.

The cost of operating an aquatic facility has also increased since the 2010 calculationswere reported in the Feasibility Study. The increased costs are likely due to utilities andstaff wages, salaries and benefits. It is our opinion that the increased revenue will offsetthe increase in operating costs and therefore the projected net budget position will remainsimilar to that reported in the 2010 Feasibility Study document. If allowances forlifecycle maintenance and an operating contingency are added, the consultants areconvinced that the net operating support required annually by local taxpayers will notexceed $630,000.


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7. TAX IMPLICATIONS

The District of Vanderhoof Director of Finance provided borrowing and tax implicationinformation to the consultants in order to demonstrate the tax impact on property owners.The information is summarized below.

The key numbers that would be of interest to individual home owners are described asfollows:

To borrow $4 million to build a new pool, the cost to service that debt each yearwould trigger a tax increase of $22.34 per $100,000 of residential assessment.

To support the operation of the new pool will trigger a further tax increase of$64.47 per $100,000 of residential assessment.

In total therefore, the project would trigger a tax increase on residential propertyof ($22.34 plus $64.47) $86.81 per $100,000 of residential assessment.

The above figures are based on the following assumptions.

The tax for property within Vanderhoof would be based on all land andimprovements, but the tax for Electoral Area F would be based only onimprovements, thereby creating a ratio of 72% of total requisition within the townboundaries and 28% outside of the town, in Electoral Area F.

The total cost to borrow $4 million and repay all interest and principal over 30years at 5% interest would be $275,732 per year.

The new pool would cost $795,500 to operate each year. This includes anallowance of $50,000 per year for current capital (repairs and lifecyclemaintenance) and a $100,000 operating contingency to ensure there are nonegative surprises in this project User revenues would be $165,500 per year sothe net operating support required each year would be ($795,500 minus $165,500)$630,000.

The total tax contribution to the project each year would therefore be ($275,732for capital debt repayment plus $630,000 for operating support) $905,732.

If taxes were increased at the rate of $86.81 per $100,000 of residential property(improvements only in Area F and land plus improvements in town), and more fornon residential property (see below), the total would be sufficient to raise the full$905,732.


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Owners of other classes of property in Vanderhoof (e.g. industrial, commercial,utilities) would also experience a tax increase that equates to more than $86.81per $100,000 of assessment as shown below.

o Utilities $429.71 per $100,000 of assessmento Major industry $612.88 per $100,000 of assessmento Light industry $452.28 per $100,000 of assessmento Business $263.04 per $100,000 of assessmento Recreation/Non Profit $109.38 per $100,000 of assessmento Farm $35.18 per $100,000 of assessment


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8. SOURCES OF ADDITIONAL FUNDING

The District of Vanderhoof and the Bulkley Nechako Regional District have no securedadditional funding sources at this time. A positive referendum would put them in aposition to begin to canvas for additional funding sources. The most likely would be the

Provincial and Federal Governments. At times the two levels of government will offerinfrastructure grants where each would provide one third of the project capital cost. Ifsuch was the case in Vanderhoof and Electoral Area F the borrowing shown above in thetax implication section would be realized.

Other sources of funding may be realized from corporate donations, facility namingrights, donations from small businesses and individuals. Other opportunities that involvethe community as a whole include special events, raffles and the like. These may onlyraise smaller amounts but create interest and involvement by the entire community in therealization of the aquatic complex.

Documents

PERC Business Case Final Report August 25-12