Ontario’s Recreation Infrastructure Challenge

2006 PARKS & RECREATION ONTARIOEducational Forum

April 10, 2006

Presented by:

John FrittenburgThe JF Group

TODAY’S AGENDA

Sport and Recreation Facility Inventory project

Why is infrastructure important

Implications of aging inventory

Uses of the facility data

RELATED INFLUENCES

Facility time is at a premium

Designs have changed

Capital funding is limited

Consumer expectations are rising

Political resistance to decommissioning

ABOUT THE SPORT AND

RECREATION FACILITY INVENTORY

PROJECT

MULTIPLE PHASED PROJECT

Major municipal facilities Collect and analyze data Determine capital cost implications

Other municipal facilities Facilities in other sectors Operating and use trends

PROJECT ADVISORS

Steering Committee PRO, ORFA, OPA, OTC

Working Group MTR, YMCA, OFC, Private Sector

PROJECT SCOPE Major Facilities

arenas pools (indoor and outdoor) community centres

Other Facilities gymnasia splash pads curling rinks wading pools fitness centres golf courses outdoor rinks down hill skiing

RESPONSE RATE

96% - 409 of 428 municipalities

Non-respondents – mostly counties, townships and districts

Sample represents 99% of provincial population

ANALYSIS CATEGORIES

Location

Municipal population

Facility age

MAJOR MUNICIPAL FACILITIES

Community Centres 1,370

Arena 677

Indoor Pools 234

Outdoor Pools 279

LIFE CYCLE STATUS – ALL MAJOR FACILITIES

0%

10%

20%

30%

40%

50%

60%

70%

CommunityCentres

Arenas Indoor P ools OutdoorP ools

Facility Type

Chart 1Life Cycle Status of Major Facilities

1 - 10 years

11 - 24 years

25 - 49 years

50+ years

DEVELOPMENT TRENDS

0% 20% 40% 60% 80% 100%

Proportion of Public Inventory

Single Pad

Twin Pads

Triples

Quads

Chart 2Arena Life Cycle Status

1 - 10 years

11 - 24 years

25 - 49 years

50 + years

COMMUNITY CENTRE LIFE CYCLE STATUS

Chart 3Community Centre Life Cycle Status

1 - 10 years14%

11 - 24 years22%

25 - 49 years45%

50 + years19%

ARENA CONFIGURATIONSChart 5

Proportion of Provincial Arena Inventory By Type

Quad (+)1% Twin

15%

Triple1%

Single83%

ARENA CONFIGURATION BY COMMUNITY SIZE

0% 20% 40% 60% 80% 100%

Proportion of Arenas

Very Small

Small

Medium

Mid Range

Large

Largest

Chart 6Proportion of Arena Types By Community Size

Single

Twin

Triple/Quad

ARENA LIFE CYCLE STATUS

0% 20% 40% 60% 80% 100%

Proportion of Public Inventory

Single Pad

Twin Pads

Triples

Quads

Chart 2Arena Life Cycle Status

1 - 10 years

11 - 24 years

25 - 49 years

50 + years

POOL LIFE CYCLE STATUSChart 8

Provincial Inventory Indoor Pool by Life Cycle Status

1 - 10 years20%

50 + years2%

11 - 24 years28%

25 - 49 years50%

POOL STATUS BY COMMUNITY SIZE

0% 20% 40% 60% 80% 100%

Proportion of Pools

Very Small

Small

Medium

Mid Range

Large

Largest

Chart 9Indoor Pool Life Cycle Status By Community Size

1 - 10 years

11 - 24 years

25 - 49 years

50 + years

SUMMARY OF INVENTORY FINDINGS

Average Age

Pools 27 years Arenas 33 years Community Centres 32 years

30% - 50% of stock nearing end of life

Small communities have immediate crisis

APPROACH TO COST ESTIMATE

Establish facility parameters

Determine capital repair and replacement assumptions

Apply assumptions to facility data

COST THRESHOLDS (2005 $)

Arenas

single $7.5 M twin $13.2 M Quad $21 M

Pool $5.6 M Community Centre $1.5 M

FACILITY CAPITAL REPAIR FUNDING FORMULA

Age of Facility

Percentage of 2005 Capital Construction Cost

5% 40% 50% 130%

10 Years 25 Years 49 Years 50+ Years0 Years

OBSERVATIONS

Municipalities are significant facility providers

Inventories are critically old

Small communities have oldest arenas

Improvements needed beyond age related requirements

INFRASTRUCTURE PROGRAM SUGGESTIONS

Balance recreation, physical activity, leisure and sport facilities

Multi-year program

Consult with sector

Complement existing F/P – T programs

PROGRAM SHOULD RECOGNIZE:

Competing municipal capital priorities

Operating cost – part of local contribution

Assistance required for new and existing facilities

Life cycle maintenance program is required

APPLICATION TO CAPITAL PLANNING

Facility types by age

Estimated replacement cost

Repair cost factor

Capital repair strategy

Capital reserve contribution

FOR EXAMPLE: ASSUME YOU HAVE

1 Single pad arena 30 years old

1 Twin pad arena 15 years old

1 Pool 9 years old

2 community halls 12 years old

CAPITAL REPLACEMENT REQUIREMENTS

Arenas $9.03 M

Pool $280,000

Community Centres $1.2 M

CAPITAL RESERVE STRATEGIES

Respond to crisis

Building audits

Annual contribution formula

Funding program catalyst

RESERVE FUND FORMULA

Life Cycle Contribution Position

Year 1 – 10 1% +50%

Year 11 – 25 2% -25%

Year 26 – 50 2% Even

IMPLICATIONS OF WELL FUNDED RESERVE

Facilities constantly maintained

Lower operating costs

More cost certainty

Less bandages

Fewer major surprises

QUESTIONS AND ANSWERS