ADMINISTRATIVE REPORT
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Date:
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September 19, 2003
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Author:
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David Sherwood
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Phone No.:
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604.873 7571
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RTS No.:
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03604
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CC File No.:
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1605
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Meeting Date:
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October 23, 2003
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TO:
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Standing Committee on City Services and Budgets
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FROM:
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General Manager of Corporate Services
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SUBJECT:
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Collingwood Neighbourhood House Society Gymnasium Operating Funding
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RECOMMENDATION
THAT Council approve 2003 funding in the amount of $208,727 to the Collingwood Neighbourhood House Society for the operation of the Collingwood Gymnasium for the period January 1, 2003 to December 31, 2003; source of funds to be the 2003 Operating Budget.
CITY MANAGER'S COMMENTS
The General Manager of Corporate Services, General Manager of Community Services and General Manager of Parks recommend approval of the foregoing.
COUNCIL POLICY
The City's relationship with the Collingwood Neighbourhood House Society (the "Society") with regard to the Collingwood Neighbourhood House Gymnasium (the "Gymnasium") is outlined in the original request to Council approved on December 15, 1994. Since then, Council has approved on-going funding to support the Society's operations.
On November 7, 2002 Council instructed the Director of Legal Services to prepare and execute an operating agreement between the City and the Collingwood Neighbourhood House Society, to the satisfaction of the General Manager of Corporate Services, General Manager of Community Services and Director of Legal Services.
PURPOSE
The purpose of this report is to seek Council approval for 2003 operating funds for the Gymnasium.
BACKGROUND
The Society has been operating at the Joyce-Vanness 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 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. Further information is provided in appendix A.
In 2002 funding of $208,727 was approved by Council for the operation of the Gymnasium. This provided for approximately 60 programs by funding 13 staff and 15 contractors for the delivery and administration of these programs.
In order to clarify roles and responsibilities, staff recommended in a report to Council on November 7, 2002 that the agreement between the City and the Society regarding the funding for the Gymnasium be formalized. City staff were to 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.
DISCUSSION
A. Operating Results
Major highlights of Society's fiscal year ending March 2003 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. 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.
The financial operating results for the year ended March 2003 are included in appendix C, and can be summarized as follows:
Year ended March 2003
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Budget
2002/3
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Actual
2002/3
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Variance
Favourable/
(unfavourable)
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Revenue
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272,000
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281,341
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9,341
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Accessibility Expenses
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2,700
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3,327
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(627)
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Human Resources Expenses
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208,512
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251,432
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(42,920)
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Administration Expenses
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43,107
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43,616
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(509)
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Capital and Facilities Expenses
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9,596
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7,573
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2,023
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Program Expenses
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8,085
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10,992
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(2,907)
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TOTAL EXPENSES
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272,000
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316,940
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(44,940)
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NET SURPLUS/(DEFICIT)
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0
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(35,599)
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(35,599)
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In 2002/3, the Gymnasium experienced a deficit of ($35,599) against a breakeven budget. The deficit was covered by the Collingwood Neighbourhood House undesignated surplus. The consolidated statement of operations for Collingwood Neighbourhood House Society shows a net surplus of $167k against total revenues of $3.7 million.
The primary reason for the deficit is due to wage increases related to the Provincial Monroe Agreement ($29,000). Under the Monroe agreement, a number of positions within the non-profit sector where identified as being low paid. To address the inequity, higher labour rates were mandated. Provincial funding was made available to cover the cost of these higher rates in most cases until contract negotiations were to be completed. It was anticipated that the negotiations would resolve any rate equity issues. The Collingwood Neighbourhood House recreational program was excluded from Provincial reimbursement due to its funding relationship with the City. Therefore, the Neighbourhood House was required to incur the cost of the Monroe wage levels directly. The Monroe agreement expired in April 2003 at the same time as the expiration of the collective agreement, bringing wages to pre-Monroe levels.
Expansion of some programs resulting in higher program fees, increased contract services and more supplies resulted in further increasing the deficit.
B. Service Agreement
An outline service agreement has been drafted and initial agreement has been obtained between representatives from each of the stakeholders, Corporate Services, Community Services, Parks and Recreation and Collingwood Neighbourhood House. A first draft of the agreement has recently been prepared by Legal Services. It is hoped that the agreement which is a modification of the existing Lease Agreement will be completed within the next 6 months.
One of the principle elements of the agreement is the recognition that Corporate Services, Community Services and Parks and Recreation require representation in performing an annual review of gymnasium operations. Management of the services contract is therefore seen as a joint responsibility and for efficiency the review will be coordinated with the annual Community Services review of the Collingwood Neighbourhood House operating grant application. Some of the proposed details of the agreement are included in appendix D. Under this new agreement the annual review of the activities of the Collingwood Gymnasium will be formalized and will take place within the first 60 days of each year beginning in 2004.
C. Funding Request for 2003
The current funding arrangement with the Society for the Gymnasium expired in December 2002. In preparing the 2003/4 gymnasium budget and after consultation with City staff in preparing an outline operating agreement, the Society is submitting a request for $208,727 for the year 2003. This is equal to the 2002-funding amount received from the City. Staff have reviewed the details supporting the request and is satisfied that they are reasonable and comply with the agreed level of service. Appendix C provides a summary of the operating statements.
It should be noted that the 2003/4 Budget reflects lower wage levels than 2002/3, following the expiry of the Munroe agreement. The budgeted salary costs do not reflect any increase from the collective bargaining process currently in progress. Following the outcome of negotiations changes to programs and program fees will likely be necessary to balance revenue and expenditures.
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. Attached is a 2003 work plan (appendix B) which outlines anticipated activity in the current year.
FINANCIAL IMPLICATIONS
Staff support the extension of the funding arrangement for the Gymnasium and the proposed City funding of $208,727 for 2003; source of funds to be the 2003 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.
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APPENDIX A
Collingwood Neighbourhood House Gymnasium and Recreation Program
History
The Collingwood Neighbourhood House gymnasium was part of the 1995 Collingwood Village Amenities, a comprehensive city plan to support the establishment of city funded services as part of the approved Collingwood Village development. The development of a gymnasium was a community priority identified by the Joyce Street Area Planning Committee.
Under this plan, the Collingwood Neighbourhood House assumed responsibility for managing the gymnasium on the understanding that the society would receive City funding to support these operations at a comparable level to that provided to similar operations. The gym is one component within a multi-service facility that included other community amenities, purpose built licensed childcare facilities, park space, and an elementary school that opened in January 2002.
As noted in the 1995 City report, this approach was less costly than having the gym operated by the Parks Board. It also ensured that services on the Collingwood site could be better coordinated and that there was maximum potential for community input into the operation. Under this agreement, the Collingwood Neighbourhood House agreed to fund services beyond the basic level through fundraising and program revenues.
A steering committee was established in 1995 to start-up operations, establish operating budgets, and guide programming direction. This committee was made up of representatives from the Joyce Street Area Planning Committee, the Collingwood Neighbourhood House, the City, Parks and Recreation, and the School Board. Working within the mission of Collingwood Neighbourhood House to serve the needs of the community, this committee established the principles and vision that continue to guide Collingwood's recreation program operations, as described in the goals below:
Main goals of the Recreation program
1. To provide a broad range of recreation and leisure services and opportunities to Collingwood residents of all ages and ability levels.
2. To provide a good balance of social, cultural, physical and arts related activities and work with residents to ensure programs are relevant and responsive to community needs.
3. To provide programs and services that are accessible to all people in the Collingwood community, responsive to disadvantaged residents, and designed to reduce or eliminate any barriers to participation.
4. To create community development opportunities through recreation and leisure including activities for people from different generations to engage in recreation together.
Overview of Activities
The Collingwood Neighbourhood House Recreation program is comprised of over 60 programs with most of these operating year round. The nature and number of programs offered reflect the continuing growth and change of Collingwood itself. Collingwood has been undergoing unprecedented development since 1995 resulting in rapid population growth in the last decade, and this is expected to continue as current and new developments are realized over the next few years. School enrollment figures and demand for services also confirm this continuing growth. The Collingwood Village growth projections alone correctly predicted an additional 10,000 new residents when all phases are built out in a few years.
Collingwood is also one of the most economically and culturally diverse communities in East Vancouver. The proportion of residents with English as a Second Language is over 60% and government statistics confirm that there are large pockets within the community of very low-income families. Collingwood also has one of the highest proportion of newborns, as well as the highest number of youth per capita as confirmed by Health and Census statistics. Lastly, Collingwood has a disproportionately high number of seniors and special needs residences. This community diversity continues to shape the overall content of recreation programs and their accessibility.
APPENDIX B
Collingwood Neighbourhood House Gymnasium and Recreation Program
2003 Work Plan
· Maintain existing complement of basic recreation programs at high level of quality
· Increase gym and recreation activities on weekends
· Increase services for children and families
· Hold a community planning session involving the public and key community organizations.
· Develop new or expanded programs in the following areas:
-advanced seniors fitness
-seniors outdoor activities
-recreation activities geared to a female population
-outdoor recreation for youth and children
-social activity programs for single adults
-performing arts and music
· Expand community education and promotion of health benefits of recreation and leisure
· Work with the adjacent elementary school to expand after school gym and recreation activities for children
· Work with community residents to develop gardening programs
· Work with community partners to re-establish NightHoops youth basketball program
APPENDIX C
Statements of Revenue and Expenses for the
Collingwood Neighbourhood House Society Gymnasium
For Fiscal years ending 31 March
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2001/2
Actual
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2002/3
Budget
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2002/3
Actual
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2003/4
Budget
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Change in Budget Position
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REVENUE
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Earned Income & Fundraising
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61,043
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60,393
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68,874
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61,340
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947
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City of Vancouver (gym)
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206,394
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208,727
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209,620
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208,727
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0
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Federal Government
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2,770
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2,880
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2,847
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2,880
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0
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TOTAL REVENUE
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270,207
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272,000
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281,341
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272,947
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947
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EXPENSES
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Van Operations
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52
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600
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56
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420
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(180)
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Transport/Travel
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81
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0
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375
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0
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0
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Publicity/Promotion
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947
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2,100
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2,896
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2,820
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720
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Accessibility Expenses
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1,080
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2,700
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3,327
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3,240
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540
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Salaries and Wages
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164,386
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139,339
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157,208
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140,784
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1,445
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Benefits
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16,344
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16,721
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29,316
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16,137
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(584)
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Contract Services
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59,188
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50,652
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61,238
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52,200
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0
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Honoraria
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2,315
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1,200
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3,430
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1,200
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0
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Volunteer Support
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100
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0
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0
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0
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0
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Staff Development
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727
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600
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240
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600
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0
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Human Resources Expenses
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243,060
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208,512
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251,432
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210,921
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2,409
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Admin Fee
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38,544
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40,107
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40,068
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40,941
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674
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Membership Dues
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215
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200
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215
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250
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50
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Office Supplies
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127
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240
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287
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240
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0
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Photocopies
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2,119
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2,400
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3,046
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2,307
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(93)
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Administration Expenses
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41,005
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43,107
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43,616
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43,738
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631
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Equipment Purchases
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4,561
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3,800
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1,777
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3,600
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(200)
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Facility Charge
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3,876
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5,796
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5,796
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5,000
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(796)
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Capital and Facilities Expenses
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8,437
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9,596
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7,573
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8,600
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(996)
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Food Supplies
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382
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200
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1526
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378
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178
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Program Supplies
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7,649
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7,385
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9,416
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6,070
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(1,315)
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Misc
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555
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500
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50
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0
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(500)
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Program Expenses
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8,586
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8,085
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10,992
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6,448
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(1,637)
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TOTAL EXPENSES
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302,168
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272,000
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316,940
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272,947
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947
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NET SURPLUS/(DEFICIT)
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(31,961)
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0
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(35,599)
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0
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0
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APPENDIX D
Operating Agreement - Outline of some of the Key Points
1. Funding is to be provided to the Society following the two general principles
· That the City is responsible for funding a basic level of recreational services for a community gym, and
· That the Society is responsible for providing services above the basic level.
2. The City recognizes that the operating agreement reflects a unique partnership that is based upon providing recreational programs and services to the Collingwood Community in the most cost effective way.
3. The Society is to perform the following
· To provide a broad range of recreation and leisure services and opportunities to Collingwood residents of all ages and ability levels
· To ensure that programs are relevant, of high quality and responsive to community needs
· To provide programs and services that are accessible to all people in the Collingwood Community, responsive to disadvantaged residents, and designed to reduce barriers to participation
4. At all times during the term of this agreement or any renewal term there will be three City staff members with representatives from Parks and Recreation, Community Services Group and Corporate Services Group who will form a committee (herein referred to as the City Staff Committee) responsible for the administration of this operating agreement between the City and the Society.
5. Within 60 days of the calendar year end the City Staff Committee will have an annual meeting with management and at least 2 board members of the Society to review current performance and plans for the future. The Society shall ensure the continued involvement of the Joyce Street Area Planning Committee and should invite a representative to the annual review meeting. This meeting will where possible coincide with the Community Grant Application interview.
6. Prior to the annual meeting, the Society will provide to the City Staff Committee a business plan detailing the programs and services to be delivered in the forthcoming Society's fiscal year. The business plan will outline the development of recreational services including specific objectives, deliverables, responsibilities and timescales. The plan will provide details of the specific programs and services to be delivered, including anticipated revenues and costs. The Society will also provide financial and program performance information for the first 9 months of the current fiscal year being from April 1 to December 31 along with financial projections to the year end. For comparison purposes information should be provided for the previous fiscal year.
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