ADMINISTRATIVE REPORT

Date: July 17, 2001
Author/Local: Imelda Wong / 7769
RTS No. 02215
CC File No. 1605
Council: July 31, 2001

TO: Vancouver City Council

FROM: General Manager of Corporate Services / Director of Finance

SUBJECT: Collingwood Neighbourhood House Society Gymnasium- 2001 Operating Funding Request

RECOMMENDATION

THAT Council approve 2001 funding in the amount of $205,137 (a 2.5% increase over the 2000 funding), for the operation of the Collingwood Neighbourhood House Society Gymnasium; funds are provided in the 2001 Operating Budget and disbursed on a quarterly basis.

COUNCIL POLICY

The City's relationship with the Collingwood Neighbourhood House Gymnasium is outlined in the original operating requirements approved by Council on December 15, 1994. Since then, Council has also approved on-going funding to support their operations.

BACKGROUND

The Collingwood Neighbourhood House Society has been operating the Joyce-Vaness site since late 1995. The Society supports more than one hundred employees and more than 250 volunteers who operate in excess of sixty programs and services. In addition to City funding which support the gymnasium, child care operations and grant funding for other services is provided from both the Federal and Provincial governments, other grant funding and fund raising activities.

The operation of the gym is considered to be a unique arrangement, although owned by the City, the Collingwood Gymnasium is run by an independent society. The City is responsible for the basic level of service and the Society is responsible for providing services beyond this.

DISCUSSION

A. Operating Arrangement

City Council, on December 15, 1994, approved funding for the start up and operation of the Collingwood Neighbourhood House Gymnasium. This three year operating arrangement included the basic operating principles and priorities, outlining the City's responsibility to provide funding for a basic level of service in the gym, comparable to other Park Board facilities, with Collingwood Neighbourhood House Society responsible for providing services above the basic level. Since then, Council has approved the renewal of the gymnasium funding to continue operations on the basis of the principles established in the original report to Council.

A Steering Committee was created to be responsible for the operating and financial decisions of the gymnasium in addition to other aspects of the facility's overall operation and programming. The eight members of the committee reflect the different interest groups that are involved with the gymnasium: Parks Board, Joyce Street Area Planning Committee, Collingwood House, the Vancouver School Board, and members of the community. Involvement of a Parks Board representative on the Steering Committee provides additional assurance that the facility is operated within the intent of the basic operating arrangement.

In the original operating arrangement, the possibility of future joint usage of the gymnasium by the Collingwood Neighborhood House Society and Vancouver School Board was contemplated. In 2001, the Vancouver School Board began the construction of an elementary school in an adjacent lot to the Collingwood Gym. In anticipation of the completion of the school in 2002, a comprehensive licence and operating agreement is currently being drafted by legal services and will be reported to Council later in the year. The School Board will have the right to the exclusive use of the East half of the gym during a specified period. The agreement will detail all financial and operational issues between the City of Vancouver, Collingwood Neighborhood House Society, and Vancouver School Board. Staff will report back to Council on the operating agreement for the 2002 funding year.

B. 2000 Operating Results

Major highlights of 2000 include significant progress in community development issues. The Collingwood Neighbourhood Society continued to reflect the needs of a diverse community by providing a broad range of programs. The Society promoted various health and wellness activities such as Family Drop-In Gym Session which highlights the benefits of a more active lifestyle. Collingwood staff continued to work with local residents to improve cultural development and participation in the community by encouraging the intermingling of different age groups and cultures through the Cross Generation Program and the Aboriginal Carving Project.

In 2000, Collingwood Neighbourhood House gymnasium experienced a modest increase in revenues due to the growing usage of the gymnasium. However, in spite of these increase revenues, a net deficit of $3,564 was reported, which was mainly attributed to one-time expenses incurred for the repair and replacement of equipment purchased in 1995 in addition to the start-up costs for several new programs (please refer to Appendix A for the gymnasium financial statements provided by Collingwood Neighbourhood House).

C. Funding Request for 2001

The three year funding arrangement provided to the Collingwood Neighbourhood House Society for the gymnasium expired in December 2000. A new three year funding arrangement is not appropriate at this time due to the changing usage of the gym being precipitated by the Vancouver School Board. Staff, therefore, recommend that funding be provided for a one year period, on the basis of the terms contained in the expired arrangement. Longer term funding will be reviewed as part of the new operating agreement that is to be reported to Council later this year.

Collingwood Neighborhood House has submitted a request for $205,137 to fund the gymnasium during 2001. This represents a increase of 2.5% over the 2000 funding level. Staff has reviewed the details supporting the request and are satisfied that they are reasonable and comply with the agreed level of service. It is recommended that funding be disbursed on a quarterly basis to Collingwood Neighbourhood House Society. (Please refer to the attached 1999/2000 Annual Report and Audited Financial Statements - limited distribution).

Staff support the proposed increase in City funding of 2.5% for a total 2001 operating funding of $205,137. Annual funding for the gymnasium has not been increased in the past three years. This increase will be used to provide for general inflation, increased costs in fuel, and replacement cost of worn equipment.

CONCLUSION

Collingwood Neighbourhood House Society provides an important service to a demographically diverse community in the Collingwood area. The unique arrangement of a local organization responsible in the development and operation of a city-owned gymnasium has been mutually beneficial in this community. Continued financial support for the gymnasium operation will ensure that the service can continue to be provided to members of the community.

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Appendix A
Collingwood Neighbourhood House Gymnasium
Financial Statements

REVENUE:			1999	2000	2001 Budget
	Earned Income	Fees	51,644	55,996	53,928
		Recoveries		20
			51,644	56,016	53,928
	Government Funding	City of Vancouver	200,134	200,134	205,137
		Provincial
		Federal	2,496	2,414
			202,630	202,548	205,137
	Fundraising	Grants	3,500		2,880
		Program Fundraising	87	24
		Event Fundraising	30	648
			3,617	672	2,880
TOTAL REVENUE			257,891	259,236	261,945
EXPENSES
	Accessability	Van Operation	346	103	581
		Transport/Travel	274	326
		Publicity/Promotion	769	705	900
			1,389	1,134	1,481
	Human Resources	Salaries and Wages	148,138	131,134	135,068
		Benefits	8,724	9,031	9,257
		Contract Services	40,611	54,668	53,400
		Honoria	545	1,433	1,200
		Volunteer Support		250
		Staff Development	196	457	160
			198,214	196,973	199,085
	Administration	Admin Fee	36,751	38,102	38,541
		Membership Dues	394	210	200
		Office Supplies	478	120	240
		Photocopies	2,297	2,735	2,400
			39,920	41,167	41,381
	Capital and Facilities	Maintenance	44
		Equipment Purchases	495	2,045	3,200
		Facility Charge	17,523	9,987	10,072
			18,062	12,032	13,272
	Program Expenses	Food Supplies	790	762	200
		Program Supplies	6,386	10,395	6,027
		Misc	(89)	337	500
			7,087	11,494	6,727
TOTAL EXPENSES			264,672	262,800	261,946
NET SURPLUS / DEFICIT			(6,781)	(3,564)	(0)

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(c) 1998 City of Vancouver