Report to: General Committee                                                    Report Date: January 19, 2009

 

 

 

SUBJECT:                          Thornlea Pool

PREPARED BY:               Colin Service, Manager, Planning & Policy Development

                                           

 

RECOMMENDATIONS:

THAT the report titled “Thornlea Pool” be received;

 

AND THAT Council support taking over maintenance and operations of Thornlea Pool Facility conditional upon further negotiations with York Region District School Board (YRDSB);

 

AND THAT Staff be directed to undertake negotiations with YRDSB in taking over maintenance and operations of Thornlea Pool Facility such that YRDSB are a major rental tenant of the facility contributing revenue equal to or greater than current financial contribution to the facility and that a Capital Surcharge be negotiated for YRDSB to pay annually to offset assumed capital costs to the facility;

 

AND THAT Staff report back results of negotiations prior to any formal agreement being made;

 

AND FURTHER THAT staff be directed to do all things necessary to give effect to this resolution.

 

 

PURPOSE:

The York Region District School Board (YRDSB) has requested that the Town of Markham (TOM) consider taking over full operation of the Thornlea Pool.  The purpose of this report will be to provide background on the Thornlea Pool and to seek endorsement to negotiate with YRDSB on new operating agreements.

 

 

BACKGROUND:

In 1971 an agreement was signed with the York Region District School Board and the Town of Markham for shared use of a swimming pool and gymnasium to be constructed behind Thornlea Secondary School.  As part of the agreement, the land in which the facility is located was sold to the Town of Markham for $1.00.  Further to the agreement, the Town of Markham paid all construction costs associated with building the facility.

 

Also included in this agreement were a series of operational issues as highlighted below:

 

-         YRDSB had full responsibility for ongoing maintenance, cleaning and chemical monitoring of the facility

-         YRDSB would have access to the pool during the school year, Monday to Friday from 9:00 am to 5:30 pm

-         TOM would have access to the pool during the school year, Monday to Friday from 6:00 pm to 11:00 pm, Saturday from 8:30 am to 11:00 pm, Sunday from 10:00 am to 5:00 pm

-         TOM would have access to the pool during school break periods (Christmas, March Break, Summer) Monday to Saturday from 8:30 am to 11:00 pm, Sunday from 10:00 am to 5:00 pm

-         TOM pays YRDSB 64.62% of all costs associated with maintenance and care of facility as TOM utilizes 64.62% of operating hours

-         TOM pays YRDSB 64.62% of all capital costs associated with facility as TOM utilizes 64.62% of operating hours

 

Over the years since the agreement was signed there were a series of small changes to hours of operation including earlier use by the Town of Markham in the evening and use of the facility in the morning prior to 9:00 am.  These changes to the agreement were never formalized.  The Town of Markham continues to pay 64.62% of all costs despite making use of closer to 70% of operating hours.

 

YRDSB currently operates no other pools in the entire region.  As such, they have asked that the Town of Markham consider taking over operation of the facility.  YRDSB has acknowledged that they would still rent the facility and have a financial obligation to continue supporting the facility.  YRDSB have indicated that operating only one pool presents significant challenges in training and provides a variety of labour relations issues.

 

 

OPTIONS/ DISCUSSION:

Currently YRDSB performs all maintenance of the facility and then bills the Town of Markham.  This does put the Town of Markham in a position of some risk as it has no jurisdiction in how the facility is maintained but then must contribute 64.62% of said costs.  It is believed that through efficiencies of operating multiple pools and the Town of Markham’s lower cost structure there is opportunity to realize efficiencies in the total costs of operation while minimizing risk to the Town.  Costs associated with this operation are further explored in the Financial Considerations section of this report.

 

By assuming maintenance operations from YRDSB, there is also opportunity to vary the hours of operation, consider day time programming alternatives and generally improve the overall level of service offered to the community

 

 

 

 

 

 

 

 

 

FINANCIAL CONSIDERATIONS:

YRDSB currently operates on a fiscal year of Sept 1 through Aug 31.  In the fiscal year ending Aug 31, 2007 the Town of Markham was billed $323,832.51 as follows:

 

Item

Cost

1. Utilities

$154,102.56

2. Supplies

$18,805.20

3. Maintenance (including capital)

$175,782.42

4. Salaries & Benefits

$143,986.92

5. Miscellaneous

$8,456.47

TOTAL

$501,133.57

64.62% Billed to Town of Markham

$323.832.51

35.38% Paid by YRDSB

$177,301.06

 

The Town of Markham assumes to a total operating deficit of $309,882 (excluding any capital expenses) annually as highlighted in the table below:

 

Personnel Expenses

$391,386

Non Personnel Expenses

$277,172

Total Expenses

$668,558

Total Revenue

($358,676)

NET

$309,882

* $240,000 of Non personnel expenses are paid to YRDSB for operating costs, excluding 

   capital.

 

In the current agreement YRDSB covers 35.38% of all expenses or approximately $177,000 annually.  YRDSB have acknowledged that they do need to continue to make a financial commitment to the operation of the facility.

 

As such, it is recommended that the Town of Markham negotiate with YRDSB to assume full operation of the facility with YRDSB being a major tenant that commits to a minimum number of hours at an appropriate rental rate such the YRDSB pays a minimum of $177,000 annually in rent.

 

YRDSB did undertake a full facility analysis to determine the capital requirements needed for the facility over the next 30 years.  (Please see Appendix A).  It is further recommended that during the negotiation process a capital surcharge be discussed to ensure that YRDSB is billed an annual amount proportionate to use to cover long term capital repairs.

 

Staff will report back results of negotiations before any formal agreement is finalized.

 

 

 

 

 

ALIGNMENT WITH STRATEGIC PRIORITIES:

Parks, Recreation, Culture & Library Master Plan/Public Safety – this will have opportunity to increase service levels.

 

 

DEPARTMENTS CONSULTED AND AFFECTED:

Finance

 

RECOMMENDED

                            BY:    __________________________      ________________________

                                      Brenda Librecz                                   Glen Taylor

                                                                    Commissioner, Community                       Acting Director                     

                                                                     & Fire Services                                 Recreation Services

                                                                                               

 

                                 

Q:Recreation/REPORTS/Report, Thornlea Pool