Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on City Services and Budgets

FROM:

General Manager of Corporate Services

SUBJECT:

Collingwood Neighbourhood House Society Gymnasium Operating Funding

 

RECOMMENDATION

COMMENTS

POLICY

PURPOSE

The purpose of this report is to seek Council approval for 2002 operating funds for the Gymnasium and to seek Council approval to instruct the Director of Legal Services to prepare and execute an operating agreement with the Society regarding the funding for the Gymnasium.

BACKGROUND

The Society has been operating at the Joyce-Vaness site since late 1995. A five year lease renewal agreement between the City and the Society covering the period November 25, 2000 to November 24, 2005 was approved by resolution of City Council on February 19, 2002. Section 1.7 of the lease states that the Society agrees to provide, to the satisfaction of City Council, administration of the premises, operation of the Gymnasium for the benefit of the Collingwood neighbourhood, a licensed daycare centre area and outdoor play area and provide other programmes and activities which promote the educational, social, economic, cultural, health and recreational interests of the residents of the Collingwood area.

The Society supports more than one hundred employees and more than 250 volunteers who operate in excess of sixty programs and services. The total operating budget for all programs for 2001 was approximately $4 million, with sources of funding from endowments, program fees and fundraising activities (41%) and grant funding for child care operations and other services from the City, Provincial and Federal governments (59%). Specifically this report addresses the City funding to support the Gymnasium.

The operation of the Gymnasium is considered to be a unique arrangement. Although owned by the City, the Society leases and operates the Gymnasium. It was determined that the independent operation of the Gymnasium would be less expensive than if it were City managed and would allow for more community input into the operation. The foundation for the recreation and gym programs was established by a gym committee that included City and resident representation.

The following general principles were described in the November 30, 1994 Administrative Report as the basis for the Gymnasium operations:

The requested funding of $208,727 will provide for approximately 60 programs by funding 13 staff and 15 contractors to deliver and for the administration of these programs.

DISCUSSION

A. Gymnasium Operation
On December 15, 1994 City Council approved funding for the start up and operation of the Gymnasium. This three-year operating arrangement included the basic operating principles and priorities. 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.

In the original operating arrangement, the possibility of future joint usage of the Gymnasium by the Society and Vancouver School Board (the "School Board") was contemplated. In 2001, the School Board began the construction of an elementary school in an adjacent lot to the Collingwood Gym. The City, the School Board, and the Society are presently finalizing a comprehensive license and operating agreement which gives the School Board the right to the exclusive use of the east half of the gym during specified times and details the financial and operational issues between the City, the Society, and the School Board. Specifically, it states that the School Board agrees to pay its proportionate share of the operating costs of the Gymnasium, based on the hours of use by the School Board and includes custodial, utilities, repairs and maintenance and other operating costs. At the time of the writing of this report the agreement was not yet executed so an estimate for the School Board's proportionate share of costs is not included in the 2002 budget. It is estimated that the School Board's share on an annualized basis will be approximately $10,000 and is to be included in the 2003 budget.

In order to clarify roles and responsibilities, staff recommend that the agreement between the City and the Society regarding the funding for the Gymnasium be formalized. City staff will work with Legal Services and the Society to draft and enter into a specific operating agreement prior to the next request to Council for funding approval.

Specifically, the agreement will set out the program and service levels the Society is to deliver, the Society's obligations regarding use of the funds and accounting for the funds, and the City's rights and responsibilities to review and approve program and service levels and the Society's financial obligations. The agreement would also address an appropriate funding formula for the gymnasium operations, including the allocation of the endowment fund revenues and the addition of the Vancouver School Board as a user of the gym.

B. 2001 Operating Results
Major highlights of 2001 include significant progress in community development issues. The 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 the Family Drop-In Gym Session which highlights the benefits of a more active lifestyle. Collingwoodstaff 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. As well, the society has increased the recreational opportunities for girls and the accessibility to programs to low income residents through their "affordable fun" program.

In 2001, the Gymnasium experienced a modest increase in revenues due to the growing usage. However, in spite of the increase in revenues, a net deficit of $31,961 was reported, which was mainly attributed to a retroactive wage settlement and increased wages and benefits costs (please refer to Appendix A for the Gymnasium budget provided by the Society). This deficit was funded by the operating surplus that the Society has accumulated for their total programs, which is currently at approximately $244,000 on their overall budget of about $4 million.

C. Funding Request for 2002
The current funding arrangement with the Society for the Gymnasium expired in December 2001. The Society has submitted a request for $208,727 to fund the Gymnasium during 2002 (an inflationary increase of 1.75% over the 2001 funding of $205,137). Staff have reviewed the details supporting the request and are satisfied that they are reasonable and comply with the agreed level of service.

This level of funding will enable the Society to continue to provide programs and services in the Gymnasium that promote the educational, social, cultural, health and recreational interests of the residents of the Collingwood area and continue to operate independently, allowing the community more input towards what programs and services are most important for the neighbourhood.

FINANCIAL IMPLICATIONS

Staff support the extension of the funding arrangement for the Gymnasium and the proposed City funding of $208,727 for 2002; source of funds to be the Operating Budget.

CONCLUSION

The 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.

- - - - -

Appendix A - Collingwood Neighbourhood House Gymnasium Budget

 

2000

2001

2002 Budget

Variance
Favourable/
(Unfavourable)

REVENUE

        

Earned Income

56,688

62,300

60,393

(1,907)

City of Vancouver (gym)

200,134

205,137

208,727

3,590

Federal Government

2,414

2,770

2,880

110

TOTAL REVENUE

259,236

270,207

272,000

1,793

         

EXPENSES

        

Van Operations

103

52

600

(548)

Transport/Travel

326

81

0

81

Publicity/Promotion

705

947

2,100

(1,153)

Accessibility Expenses

1,134

1,080

2,700

(1,620)

         

Salaries and Wages

131,134

164,386

139,339

25,047

Benefits

9,031

16,344

16,721

(377)

Contract Services

54,668

59,188

50,652

8,536

Honoraria

1,433

2,315

1,200

1,115

Volunteer Support

250

100

0

100

Staff Development

457

727

600

127

Human Resources Expenses

196,973

243,060

208,512

34,548

         

Admin Fee

38,102

38,544

40,267

(1,723)

Membership Dues

210

215

200

15

Office Supplies

120

127

240

(113)

Photocopies

2,735

2,119

2,400

(281)

Administration Expenses

41,167

41,005

43,107

(2,102)

         

Equipment Purchases

2,045

4,561

3,800

761

Facility Charge

9,987

3,876

5,796

(1,920)

Capital and Facilities Expenses

12,032

8,437

9,596

(1,159)

         

Food Supplies

762

382

200

182

Program Supplies

10,395

7,649

7,385

264

Misc

337

555

500

55

Program Expenses

11,494

8,586

8,085

501

         

TOTAL EXPENSES

262,800

302,168

272,000

30,168

         

NET SURPLUS/(DEFICIT)

(3,564)

(31,961)

0

31,961

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