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HomeMy WebLinkAboutCRPS-06-004 - Twin Pad Arena - Design Development / Preliminary Budget StageReport To: Councillor B. Vrbanovic, Chair, and Members of the Finance and Corporate Services Committee Date of Meeting: January 23, 2006 Submitted By: G. Sosnoski, General Manager of Corporate Services & City Clerk Prepared By: G. Sosnoski (on behalf of the Twin Pad Arena Steering Committee) Wards} Involved: Date of Report: December 22, 2005 Report No.: CRPS-06-004 Subject: TWIN PAD ARENA- DESIGN DEVELOPMENTI PRELIMINARY BUDGET STAGE RECOMMENDATION: That the Business Case for the new Twin Pad Arena as appended to Corporate Services Department staff report CRPS-06-004 (December 22, 2005) be accepted and that staff proceed with the design development phase of the project on the basis of a B / C Class building, with a preliminary budget estimate of $15.5M (2007 dollars) and an estimated 2006 cost of between $800,000. and $1,000,000.; and further, That staff be authorized to hire, through the standard consultant hiring procedure, an architect for the design development component, and a construction manager to participate in both the design development and construction phases of the project. BACKGROUND: Council, at the December 12, 2005 meeting, directed staff to complete the attached Business Case for a new twin pad arena targeted for completion in June, 2008, incorporating the Hanson Avenue snow dump site as the preferred location. Prior to that, and in June of 2005, Council endorsed, in principle, construction of a twin pad arena in accordance with the preliminary schedule provided by staff in consultation with the Kitchener Minor Hockey Association which would see construction of a new twin pad arena commence in April, 2007. The need for a new twin pad arena was established in the Leisure Facilities Master Plan which recommended its construction for the 2006 /2007 ice season. A subsequent Ice Demand Study showed that demand for ice surfaces exceeds supply due to population growth (Kitchener is growing at a faster rate than Ontario and Canada), and growth in participation rates. At present, the number of publicly owned ice pads per resident is below the Regional average. The Business Case was developed by the following staff team in consultation with stakeholders and the public: R. Upfold, B. Sloan, F. McCrea, G. Collins, H. Gross, K. Baulk, K. Kugler, M. Petricevic, P. Forrest, M. May, R. Morgan and G. Sosnoski (Chair & Project Owner). Numerous other staff were consulted in the course of project development. REPORT: Construction Method Various methods of project delivery can be selected for different reasons based on individual project and market circumstances, and no single method is appropriate in all instances. In the case of the twin pad arena, staff are planning to use the construction management approach, which in this instance will include completion of a full set of drawings prior to tendering the project. Though not necessarily the least expensive approach, it has been identified as the most appropriate under the circumstances for the following reasons: Given the timing constraints and delivery deadline, this method will allow construction to begin 2-3 months earlier than might otherwise be the case as possible delays in obtaining internal approval and permits will be eliminated or greatly reduced; Completing a full set of specifications is not always part of the construction management approach; however, in this instance it will simplify and streamline the site plan approval and building permit processes; Allows greater control over the quality of construction through involvement in the selection of sub-trades and equipment vendors. Under other methods such as lump sum l fixed price, the general contractor would select the sub-trades and the City would have little direct control in this regard; Allows the construction manager to be part of the design team and to bring experience to the table early in the process. This practical approach can in turn result in a better quality product with the possibility of incremental cost reduction. Class of Building The Business Case provides more detail on the differences between classes of building. Generally the quality of materials, equipment and finishes increases with cost from a `C' to an `A' class building. This can have an impact on such things as capital replacement costs, ongoing maintenance costs, energy costs and building appearance. The quality of materials and finishes also has to be considered in light of the proposed use of the building and desired longevity. The staff team feels that a building combining attributes of both the `B' and `C' class would provide the best overall value for the money. It would provide for durable materials which are relatively low maintenance, with equipment and systems which employ reasonable energy efficiency measures (eg. waste heat recovery options} at a cost which maximizes value in relation to dollars spent. For example, the exterior of the building would be a combination of masonry block in the areas of highest wear and exposure, and insulated steel panels on the upper portions of the exterior walls; painted concrete block would be used in all public areas; ceilings would be painted out exposed structure with drop ceilings only in office and meeting areas. Design l Development and Parallel Processes The Facilities Management Project Manager will select a team reflecting the interests of the owner and the stakeholders, and which will include the construction manager. During the pre- design /development stage, space estimates will be refined and needs and requirements outlined in greater detail for both the building and the site layout. Staff are targeting August 2006 as the date preliminary design will be completed, and following that a report will be submitted to Council and direction requested to proceed with development of working drawings and tendering of the project. We hope to have the working drawings completed by January 2007, after which the project can be tendered for construction. At various points in the process the accuracy of the project cost estimate will be refined. The $15.5M estimate provided in this report is considered to be a `B / C' class estimate with a possible variance +l- of 15-25%. After the design l development phase is completed, the estimate will advance to a `B' class estimate (+/-10-15%), which is the point at which staff will report back to Council. The project will attain an `A' class estimate (+/- 5-10%} once construction drawings have been completed and priorto tendering. Parallel to the pre-design /development process, staff will also be negotiating partnerships and finalizing fundraising commitments. All partnerships and partnership contributions will have to be identified by July 1, 2006 as these must be known priorto completing preliminary design. At present, interest has been expressed by the Boxing Club around development of a permanent facility for their programming. Some preliminary discussion has taken place regarding a shared facility and an initial Boxing Club requirement of 5,000 sq. ft. has been identified. Financial contributions have been discussed as well, again at a preliminary level. The Kitchener Minor Hockey Association has advised of their detailed floor space requirements, which at present total approximately 3,600 sq. ft. This involves meeting room /office and storage space. They have also committed to assisting with fundraising for the project. In addition, staff have had preliminary discussions with the Lions' Club regarding possible use of the twin pad facility during Oktoberfest. An earlier commitment was made to ensure access to an appropriate venue, but whether this would be the twin pad, Queensmount or another comparable location has yet to be determined. FINANCIAL IMPLICATIONS: The pre-2004 project estimate was not a comprehensive costing and did not reflect the current project scope, construction and site preparation costs. As a result, the amount required to complete the project increased from $8.3M to $15.5M. Funding will be required in 2006 in the range of $800,000. to $1,000,000. from the 2007 capital allocation for the project. This is to retain an architect and hire a construction manager; to undertake relocation of the snow dump site currently on the Hanson Avenue property including pre-grading of the Hanson property and final grading of the replacement site; and to pay some fees and undertake any preliminary studies. As indicated above, the $15.5M amount is a `B / C' estimate. The following are the factors that could affect project cost and funding: additional funding sources could decrease the City contribution, particularly in the area of fundraising as no allocation has been identified in the budget to date; refining and greater detailing of space and materials estimates during the pre- designstage; any change in the building class which is value driven; changes in scope affecting square footage as a result of partnership or other requirements; changes in estimated construction inflation. Costing is currently based on a defined scope with limited ability to accommodate partnership requirements. Additional reports will be provided to Council in the event that partnership needs or other changes in the scope of the project have an impact on the budget estimate. Council will have an opportunity to approve or not approve these changes if and when they arise. At this point staff will be working with the $15.5M figure which is inclusive of snow dump relocation costs and is consistent with earlier revised project estimates. COMMUNICATIONS: Extensive consultation and communication has taken place with the public and stakeholders. Two public open houses were held on September 13 and November 17, 2005 which were generally well attended. In addition, numerous meetings have taken place with the primary stakeholder groups to better understand their needs and thoughts on the project. Identified stakeholder groups will also participate in the pre-design l development process. Staff will continue to keep Council informed as to any changes affecting timing, processes and partnerships and will report further in the Fall of 2006. CONCLUSION: At this point the project is on schedule and the project cost is within the range previously identified by staff for the class of building contemplated. It is therefore recommended that the project proceed to the next stage with afollow-up report in the Fall of 2006 and with the intention of completing construction by mid-2008. G. Sosnoski c: C. Ladd P. Houston A. Pappert Twin Pad Steering Committee K. Currier L. Lynch Community Services Department /Corporate Services Department Business Case TWIN PAD ARENA January 2006 Table of Contents Executive Summary .................................................................................................................... 2 Background ................................................................................................................................ .. 5 Site Selection Process .............................................................................................................. .. 8 Project Description .................................................................................................................... 15 Objectives .................................................................................................................................. 18 Scope ......................................................................................................................................... 18 Anticipated Outcomes ............................................................................................................... 19 Stakeholders .............................................................................................................................. 20 Strategic Alignment ................................................................................................................... 21 Project Risk Assessment .......................................................................................................... 22 Economic and Community Impact Analysis ............................................................................. 21 Conclusions ............................................................................................................................... 28 PAGE 1 Twin Pad Arena Current Situation The City of Kitchener currently operates eights ice pads in six arenas. In addition to the publicly owned ice pads, there are also two privately owned arenas with additional ice pads which are not available to the City for community programming uses. City ownedl operated facilities: • Grand River Arena 1 ice pad • Don McLaren Arena 1 ice pad • The Aud 3 ice pads • Patrick Doherty Arena 1 ice pad • Queensmount Arena 1 Ice Pad • Lions Arena 1 Ice Pad Privately Ownedl operated facilities: • Conestoga College 1 Ice Pad • Sportsworld Twin Pad Arena 2 Ice Pads The population of the City of Kitchener is growing at a faster rate than that of Ontario and Canada. According to the 2001 Census, the population of the City of Kitchener was 190,399. The Region of Waterloo estimated that Kitchener's population had already grown to 201,500 by 2003, and, it is anticipated that Kitchener's population will reach 234,500 by 2016 (Stats Canada) - or an additional 33,000 people. On October 20, 2003 Council endorsed, in principle, construction of a new twin pad arena in response to representations made by the Kitchener Minor Hockey Association and to address the need identified as a result of expected development and therefore new population growth in the City over the study period. Site Selection Process In February 2005, Council received the Leisure Facilities Master Plan which outlines the proposed direction for city recreational facilities over the next 15 years, subject to the necessary proposals /business cases. A new twin pad arena was recommended in the west end of the city for the 2006 l 2007 season to accommodate new growth. In April 2005, an Ice Demand Study was completed at the request of Council. The study concluded that demand for ice surfaces currently exceeds supply. This situation is expected to be exacerbated with the projected population growth in the city. (Appendix D) PAGE 2 On June 20, 2005 Council endorsed, in principle, construction of a twin pad arena for occupancy in the summer of 2008 and in accordance with the preliminary schedule provided by staff in consultation with the Kitchener Minor Hockey Association (KMHA). Staff were also directed to undertake further stakeholder and public consultation meetings with respect to location selection. (Appendix E) On June 27, 2005, Council endorsed the creation of an Arena Solutions Team to develop a short and long term strategic approach to addressing arena issues and stakeholder needs (Appendix F). The team involved key stakeholders, City of Kitchener staff and political representatives. The team will disband following the 2006 budget process. In July 2005, the City's realtor was instructed to search for an appropriate property and subsequently reported that no properties were on the market that would meet the project specifications. (Appendix G) In August 2005, the City advertised that it was looking for potential sites for a twin pad arena that could be developed either for a stand alone arena or in partnership with complimentary /accessory uses. One potential site was identified through this process, namely the privately owned site on Ira Needles Boulevard between Highland Road and Victoria Street. (Appendix H) During this time period, project parameters, which included building types, were developed. Twenty-three (23) potential sites were identified and evaluated against parameters through a matrix process which resulted in a short list of 5 potential sites. (Appendix A) City staff also contacted both area school boards to investigate the potential use /purchase of school board property or partnership arrangement. No property was found to be available in the foreseeable future. In August 2005, City staff met separately with City of Waterloo and Township of Wilmot staff to discuss potential partnerships in the development of a twin pad arena. No opportunity presented itself that staff felt was viable. The five sites initially considered included: • Eastforest Park • Fischer Park • Hanson Avenue Snow Dump • Meinzinger Park • Privately owned site on the extension of Ira Needles Blvd between Highland Road and Victoria Street. An open house and public information session was held at Forest Height Community Centre on September 13, 2005, specifically to provide information and receive feedback on the five short-listed locations. Notice of the open house was advertised in The Record and close to 5,000 invitations were delivered to residents living in the areas surrounding each of the five short-listed sites. The maps displayed at the open house can be found in Appendix I. Taking public comments into consideration and based on further staff analysis and evaluation of the initial five short-listed sites, on October 24, 2005, Kitchener City Council removed three sites from the list of potential locations for the new twin ice pad arena: Eastforest Park, Meinzinger Park and Fischer Park. (Appendix K) PAGE 3 At the same time, City Council added two additional options for the location of the arena to be considered: the Huron Farm site (Huron Rd / Fischer Hallman Rd), and; refurbishing Lions Arena and adding a new, second ice pad onto that existing building, while also reconstructing Doherty Arena to meet current standards as a single pad arena. The Lions Arena/PJ Doherty option assumed that an agreement with Sportsworld Twin Pad Arena that committed the two pads to City programming was in place. Following City Council's direction to revise the list ofshort-listed sites, City staff further investigated the sites and held a second open house and public information session on November 17, 2005, seeking input on the 4 remaining options. Staff evaluated the four options detailed in a matrix format contained in Appendix L. The short-listed sites include: • Hansen Avenue Snow Dump • Ira Needles Boulevard (private site) • Huron Farm • refurbishing Lions Arena and adding a new, second ice pad onto the existing building, while also reconstructing Doherty Arena to meet current standards as a single pad arena. On December 5, 2005 after significant public consultation and site investigation by staff, Kitchener City Councillors selected the Hanson Avenue Snow Dump as the preferred location. (Appendix M) Centrally located at Hanson and Ardelt Avenues, adjacent to St. Mary's High School and in close proximity to the Peter Hallman Ballyards, the City owned site is well positioned to service new growth into the future. Construction of the new facility can be completed in time for the 2008/2009 season at a preliminary total project cost estimate of approximately $15.5 million, the least expensive of the final four options being considered. Site characteristics, alist of pros and cons as well as detailed cost estimate of the Hansen Snow Dump site can be found in Appendix N. Project Parameters and Financial Impact The 80,000 square foot facility on Hanson Avenue has a preliminary total project budget of $15.5 million (2007 dollars) which includes a building construction estimate of approximately $110 per square foot, which incorporates the arenas, offices and mechanical rooms in a class B/C type building. The arena project will be financed through a combination of current capital and development charge funds. Annual revenues are anticipated to be $591,000 with expenses at $565,000 leaving a net annual review of $26,000 (2005 dollars) City staff will be working with a number of stakeholders to determine individual needs and funding targets. PAGE 4 Timelines Following is a projected timeframe: January 30, 2005 -Council approval of the Twin Pad Arena Business Case March, 2006 -Retain Architect and Construction Manager (advisory services) September, 2006 -Starting pre-design- drawings, "B Class" cost estimate (info to Council) March, 2006 to Sept. 2006 - On-going discussions with stakeholder groups regarding project details December 2006 - Completion of detailed construction drawings February 2007 -Construction tenders April 2007 -Construction start May 2008 -Commissioning of building June 2008 -Construction completion) Occupancy Recommendations It is recommended that a Twin Pad Arena be located on the Hanson Snow Dump site with occupancy of the facility by June 2008. Further that the City enter into discussions with a number of stakeholders to determine individual needs and funding opportunities and that any partnership arrangements be approved by Council prior to any change in project scope and cost. PAGE 5 Twin Pad Arena City ownedl operated facilities: Grand River Arena 1 ice pad Don McLaren Arena 1 ice pad The Aud 3 ice pads Patrick Doherty Arena 1 ice pad Queensmount Arena 1 Ice Pad Lions Arena 1 Ice Pad Privately ownedl operated facilities: Conestoga College 1 Ice Pad Sportsworld Twin Pad Arena 2 Ice Pads Exis#in~ ~ren~s 0 ~.~ ~~~~ PAGE 6 The population of the City of Kitchener is growing at a faster rate than that of Ontario and Canada. According to the 2001 Census, the population of the City of Kitchener was 190,399. The Region of Waterloo estimated that Kitchener's population had already grown to 201,500 by 2003, and, it is anticipated that Kitchener's population will reach 234,500 by 2016 (Stats Canada) - or an additional 33,000 people. On October 20, 2003 Council endorsed, in principle, construction of a new twin pad arena in response to representations made by the Kitchener Minor Hockey association and to service new growth within the city. It was identified during the 2004 capital budget review process that many of the project cost estimates for projects particularly later in the forecast were out of date compared to current prices or no longer reflected the scope anticipated for the projects. As a result, as part of the 200510 year capital forecast prepreation, there was an extensive review of project costing for all projects in the capital forecast with a project value greater than $1 M. The review process included detailed cost estimates based on the most current scoping, construction costing and location estimates for the projects. As a result, the twin pad arena project cost increased from approximately $8M to $15-16M. In February, 2005, Council received the Leisure Facilities Master Plan which outlined the proposed direction for city recreational facilities over the next 15 years, subject to the necessary proposals /business cases. A new twin pad arena was recommended in the west end of the City for the 2006 / 2007 season. In April, 2005, an Ice Demand Study was completed at the request of Council. The study concluded that demand for ice surfaces currently exceeds supply. This situation is expected to be exacerbated with the projected population growth in the City. As part of the Ice Demand Study, the City's consultant surveyed all of the major groups currently using City of Kitchener ice pads. Of the 25 major user groups surveyed, 16 indicated they had waiting lists for participation. For example, at the time of the Ice Demand Study, the Kitchener Minor Hockey Association had over 100 children on a waiting list. According to the ice demand study, the number of people participating in these user groups is expected to grow by 17.7 -19% by 2010, representing an additional 75 teams using Kitchener's ice pads. The Kitchener Minor Hockey Association has identified that it will have a potential requirement for 40% more prime time ice by 2010 to support growth in its participation rates. Kitchener is also experiencing significant growth in women's hockey, which is expected to grow significantly at the adult, youth and alumni age ranges and in both recreational and competitive levels. It is also anticipated that there will be a multi-team Junior `B' Women's League within ten years. This new trend will require arenas with extra dressing rooms and other amenities such as female referee rooms. Currently, groups are using the City's ice pads for prime time hours between Monday to Friday at a rate of 91.2%. This figure averages out to 2 - 2.5 hours a week of unused ice time per ice pad. This unused ice time is primarily one or two hours per week in the late evening between 10:00 pm -11:00 pm, a time unsuitable for many younger ice pad users. PAGE 7 In order to meet the anticipated demand arising from future population growth in the city, on June 20, 2005, Council endorsed, in principle, construction of a twin pad arena (Appendix E). Occupancy of the facility is scheduled for the summer of 2008 in accordance with the preliminary schedule provided by staff in consultation with the Kitchener Minor Hockey Association (KMHA). Staff were also directed to undertake further stakeholder and public consultation meetings with respect to location selection. On June 27, 2005, Council endorsed the creation of an Arena Solutions Team to develop a short and long term strategic approach to addressing arena issues and stakeholder needs (Appendix F). The team involved key stakeholders, City of Kitchener staff and political representatives. The team would disband following the 2006 budget process. PAGE 8 Project Team The twin pad site selection and construction project team is comprised of the following members: Gary Sosnoski, Chair (Corporate Services) Keith Baulk (Enterprise) Kim Kugler (Enterprise) Gary Collins (Enterprise) Mario Petricevic (Facilities Management) Peggy Forest (Facilities Management) Laurier Proulx (Facilities Management) Rosemary Upfold (Finance) Brandon Sloan (Planning) Hans Gross (Project admin) Rob Morgan (Project admin) Fiona McCrea (Legal) Michael May (Communications) This shows a wide range of Departments and Divisions will be required to bring the project to completion. (Appendix B) Protect Functions The Project team will undertake the following process: - site selection - set timelines - budget development - twin pad concept development - determine design and construction process - oversee design and construction process - commission building The commissioned facility will be operated by the Community Services Department -Enterprise Division. To meet the growing need for more ice time in the community, the City of Kitchener is committed to building a new twin ice pad arena, which would be ready for occupancy by the 2008/09 ice season. Funding for the new arena is included in the City's ten-year capital forecast. PAGE 9 Site Selection The City's Leisure Facilities Master Plan recommends the construction of two new twin pad arenas over the next fifteen years: the first to be built in the west end of the city by the 2006107 ice season and the second to be built in the south end of the city between 2011 - 2015. In July 2005, the City's realtor was instructed to search for an appropriate property and subsequently reported that no properties were on the market that would meet the project specifications. In August 2005, the City advertised that it was looking for potential sites for a twin pad arena that could be developed either for a stand alone arena or in partnership with complimentary l accessory uses. One potential site was identified through this process, namely the privately owned site on Ira Needles Boulevard between Highland Road and Victoria Street. During this time period, project parameters, which included building types, were developed. Twenty-three (23) potential sites were identified and evaluated against parameters through a matrix process which resulted in a short list of 5 potential sites. City staff also contacted both area school boards to investigate the potential use/ purchase of school board property or partnership arrangement. No property was found to be available in the foreseeable future. In August 2005, City staff met separately with City of Waterloo and Township of Wilmot staff to discuss potential partnerships in the development of a twin pad arena. The City of Waterloo indicated that they were not in a position to make any decisions on an arena or any other major facility at this time until the completion of their own Leisure Facility Master Plan in 2006. It was agreed that continued dialogue on future facilities would take place on a quarterlylbi- annual basis. The Township of Wilmot indicated interest in a partnership but the time frame for discussing and resolving a variety of key issues (political and stakeholder support, capital cost sharing, facility ownership, etc.) was extremely short in view of the target timelines for the City of Kitchener. It was agreed that there might be interest in a partnership for future facilities. After months of investigation and thorough evaluation of 23 properties, in September 2005, City staff narrowed the list of potential locations for the new twin ice pad arena down to five locations. All of the sites considered required a minimum size of eight acres to accommodate the facility and parking. Each of the 23 properties was evaluated according to the following set of specific criteria in order to come up with a short-list of the five most suitable locations: PAGE 10 City owned lands Major arterial collector roads Alternate parking opportunities Expansion potential Municipal services Vehicle access Floodplain Impact Privately owned lands High Visibility Cluster opportunities with other facilities Commercial/ Industrial Zoning ^ Site environmental quality ^ Site topography Compatible with adjacent land uses . Preserve existing public . Impact on current users of site green space Following its initial evaluation of those 23 properties, City staff began a two stage public consultation process to provide residents with information on the five short-listed sites being considered for the new arena, and to receive their feedback on each site. The five sites initially considered included: • Eastforest Park • Fischer Park • Hanson Avenue Snow Dump • Meinzinger Park • Privately owned site on the extension of Ira Needles Blvd. between Highland Road and Victoria Street PAGE 11 1st Phase of Public Consultation on Site Selection An open house and public information session was held at the Forest Heights Community Centre on September 13, 2005 specifically to provide information and receive feedback on the five short-listed locations. Notice of the open house was advertised in The Record and close to 5,000 invitations were delivered to residents living in the areas surrounding each of the five short-listed sites. The information package relating to the open house can be found in Appendix I. Based on the feedback received at that public meeting, and on subsequent written comments the City received through the mail and online, on October 17, 2005 City Staff presented a report to City Council which summarized the public feedback received on each of the five short listed properties from the first phase of public consultations. (Appendix K} Taking public comments into consideration and based on further staff analysis and evaluation of the initial five short-listed sites, on October 24, 2005, Kitchener City Council removed three sites from the list of potential locations for the new twin ice pad arena: Eastforest Park, Meinzinger Park and Fischer Park. At the same time, City Council added two additional options for the location of the arena to be considered: the Huron Farm site (Huron Rd / Fischer Hallman Rd), and; refurbishing Lions Arena and adding a new, second ice pad onto that existing building, while also reconstructing Doherty Arena to meet current standards as a single pad arena. The Lions Arena/PJ Doherty option assumed that an agreement with Sportsworld Twin Pad Arena that committed the two pads to City programming was in place. 2nd Phase of Public Consultation on Site Selection Following City Council's direction to revise the list ofshort-listed sites, City staff further investigated the sites and held a second open house and public information session on November 17, 2005 seeking input on the 4 remaining options. The short-listed sites include: • Hansen Avenue Snow Dump • Ira Needles Boulevard (privately owned site) • Huron Farm • refurbishing Lions Arena and adding a new, second ice pad onto the existing building, while also reconstructing Doherty Arena to meet current standards as a single pad arena. An evaluation matrix relating to the four potential options can be found in Appendix L. PAGE 12 The Capital Cost estimates in 2007 dollars for the four short-listed options are listed below. Huron Huron Twin Ice Pad Snow Dum p Ira Needles Property Property Tem ora p ~ Budget Detail Estimate Property New trunk Sanitary sewer Facility Budget Budget Budget Budget Studies and Fees 320,320 283,920 320,320 320,320 Building Construction 9,085,440 9,085,440 9,085,440 9,085,440 Site Development 1,892,800 3,939,520 1,788,800 1,788,800 Equipment 968,999 968,999 968,999 968,999 Off Site Development 208,000 46,800 1,076,981 1,081,600 Current Facility Replacement 603,200 - - - Contingencies 2,408,135 2,271,479 2,385,359 2,385,359 Total Estimated Project Costs 15, 486, 894 16, 596,158 15, 625, 899 15, 630, 518 Rounded $15.5M $16.6M $15.6M $15.6M On December 5, 2005, after significant public consultation and site investigation by staff, Kitchener City Councillors chose the Hanson Avenue Snow Dump as the preferred location. (Appendix M) Centrally located at Hanson and Ardelt Avenues, adjacent to St. Mary's High School and in close proximity to the Peter Hallman Ballyards, the City owned site is well positioned to service new growth into the future. Construction of the new facility can be completed in time for the 2008/2009 ice season at a preliminary total project cost estimate of approximately $15.5 million, the least expensive of the final four options being considered. A detailed cost estimate can be found in Appendix N. PAGE 13 In addition to financial and time considerations, staff also based its recommendation to build the new arena on the Hanson Snow Dump Site on a number of other factors, including: • the site is centrally located within the City; • the site is supported as the preferred location of the new arena by the City's largest user group, Kitchener Minor Hockey Association; • the site is generally easy to access from across the city, including two access points from the Conestoga Parkway and therefore is well situated to service future growth; • would create a recreational cluster with Peter Hallman Ball Yard and allow for potential opportunities for shared parking with the ballfields; • the site is close to St. Mary's High School, who could potentially use the ice pads to increase their daytime programming; • the site is not located within a residential neighborhood; • there would be no impact on existing green space/ parkland, and; • the site is already serviced by utilities. PAGE 14 Project Description In April of 2005, the City retained the services of FJ Galloway and Associates Inc. who conducted an Ice Demand Study for the City of Kitchener. The study concluded that the demand for ice time in Kitchener currently exceeds the supply of ice pads. The report advocated a strategy that would advance the proposed west side twin pad arena in the forecast along with confirming the need to develop an additional twin pad in the next 6-8 years, possibly as part of the south end campus as outlined in the Leisure Facility Master Plan. This business case assumes the construction of the Twin Pad facility being completed by June 2008. After an extensive site selection process, the City owned Hanson Avenue snow dump was deemed the preferred location due to its central location, compatibility with surrounding land uses and the ability of being able to meet the projected completion date. A new Twin Pad Arena will allow the City to accommodate regular programming and potentially allow for programming growth for Kitchener Minor Hockey, adult programs, ringette, figure skating as well as potentially creating more opportunities for public skating. A new facility would also allow for improvements to summer programs such as ball hockey, lacrosse and inline hockey. The building envelope including parking will encompass 7 to 8 acres which will include approximately 350 parking spaces. The Twin Pad facility will take up approximately 80,000 square feet consisting of: 1. Two ice pads 50,000 sq. ft 2. Bleachers 6,400 3. Mechanical Rooms 3,600 4. Storage Rooms 3,000 5. Public Spaces 6,300 6. Meeting Rooms 900 7.Offices 2,800 8. Dressing Rooms 6,700 9. Retail 300 The facility has been budgeted at $15.5 (2007 dollars) million which incorporates construction of a Class BlC building and includes all off-site works, equipment and furnishings, site development (e.g. grading, parking, lighting), contingencies, fees and any required studies. The facility will be constructed to a Class BlC quality since this type of building provides the best 'value' for the City. Money is being spent on materials that are durable and are relatively low maintenance and on equipment and systems that are energy efficient. Levels of building quality are further defined in Appendix J. PAGE 15 Following are attributes of B/C Class type buildings and reasons for its selection: • Building Envelope -exterior walls of masonry up to 10' above grade inside and out for durability, insulated steel panels above 10' for economy, insulation values in walls and roofs to meet CBIP requirements • Flooring -ceramic in vestibule and washroom areas, high grade rubber in lobby and all skate areas, VCT in offices and meeting rooms. Best combination of durability and low maintenance. • Interior Walls -Painted concrete block in all areas accessible to the public, drywall only in office areas. Painted block walls are very low maintenance. • Ceilings -exposed structure to be painted out, dropped ceilings in office areas only. Low maintenance and initial cost. • Doors and Hardware -need to be heavy duty due to the amount of traffic expected through the building. Good hardware reduces the amount of maintenance required. Heavy duty doors should last the life of the building. • Ice Plant -energy efficient packaged system with waste heat recovery options for low maintenance, reduced energy use, and option to utilitize some of the waste heat to supplement the heating system saves money. • Mechanical/Electrical Systems -systems to be selected for energy efficiency, durability, and low maintenance. Pad areas not to be air conditioned due to initial capital cost and ongoing energy and operating costs. Attributes of Class A, B and C buildings are listed below: Caa~~ "A„ • Block Construction/ decorative block -twin wall construction • Well insulated/ vapour barrier • Galvanized roof decking • Air conditioning and heating for arena • Individually designed ice plant • Offices: t-bar ceiling clw lay-in fixtures; drywall partitions, sheet flooring • Indoor roof water disposal • 50+ year life expectancy PAGE 16 Some block, steel construction Exposed Insulation Prefab bundled ice plant Upgraded materials (eg. Pumps, roofing, block or brick type) Better sizing of space Eavestrough system for roof water disposal 30 - 35 year life expectancy Prefab steel shell, steel siding and roof Exposed Insulation Prefab bundled ice plant Eavestrough system for roof water disposal 20 - 30 year life expectancy PAGE 17 Budget estimates outlining the construction cost estimates for the various building classes on the Hanson Snow Dump site are listed below in 2007 construction dollars: Twin Ice Pad Budget Summary Class B/C Building Class A Class B Class C (RECOMMENDED) Budget Budget Budget Budget Studies and Fees 320,320 320,320 320,320 320,320 Building Construction 9,085,440 12,027,392 10,037,248 7,441,408 Site Development 1,892,800 1,892,800 1,892,800 1,892,800 Equipment 968,999 968,999 968,999 968,999 Off Site Development 208,000 208,000 208,000 208,000 Current Facility Replacement 603,200 603,200 603,200 603,200 Contingencies 2,408,135 3,052,422 2,616,581 2,048,092 Total Estimated Project Costs 15,486,894 19,073,133 16,647,148 13,482,819 Rounded 15.5 19.1 16.6 13.5 Objectives The Twin Pad Arena Project will fulfill the following objectives: • assist in meeting increased user demand due to population growth • meet the recommendations inthe Leisure Facility Master Plan • meet the facility and time commitments made by Council • meet the requirements and expectations of the project stakeholders within the physical and financial parameters of the project • assist in fulfilling the needs identified in the Ice Demand Study Scope Facility Compliance The facility will be designed and constructed adhering to the basic principles and standards of the City of Kitchener for quality arena construction. The twin pad will also be designed to meet the regulatory requirements of the Ontario Building Code. The arena will also considerthe needs and requirements outlined as follows: PAGE 18 - stakeholder/user needs - standards recommended by Hockey Canada - Grand River Accessibility Advisory Committee (GRAAC) - Commercial Building Incentive Program (CBIP) - Leadership in Energy and Environmental Design (LEED) Protected Timeframe January 30, 2005 -Council approval of the Twin Pad Arena Business Case March, 2006 -Retain Architect and Construction Manager (advisory services) September, 2006 -Starting pre-design- drawings, "B Class" cost estimate (info to Council) March, 2006 to Sept. 2006 - On-going discussions with stakeholder groups regarding project details December 2006 - Completion of detailed construction drawings February 2007 -Construction tenders April 2007 -Construction start May 2008 -Commissioning of building June 2008 -Construction completion) Occupancy Anticipated Outcomes The addition of a Twin Pad facility within the City's inventory of ice pads will have a number of anticipated outcomes. These include: Will address the need anticipated as a result of new growth in the City. Relieve the pressure and requirement of depending on ice availability at Sportsworld Allow the City to accommodate regular programs and potentially allow for programming growth for Kitchener Minor Hockey, adult programs, minor ringette, figure skating as well as creating more available public skating opportunities. Allow for improvements to summer programs such as ball hockey, lacrosse and inline hockey. Improvement in operating budget due to savings resulting from having two rinks under one roof. New more efficient equipment will also result in financial savings PAGE 19 Stakeholders Stakeholders: New Twin Pad ................. Overview Primary -Internal Cit Council Bud eta royal, location and desi n Arena Staff Desi n, location, o eration Facilities Mana ement Desi n, structure, HVAC s stems Communications Media Releases, Communication Info Finance 0 eratin & Ca ital Bud ets, ro'ect fundin Buildin Desi n, ermits Primary- External Kitchener Minor Hockey Design related to winter use, location, office space, fundraising Lions Club Design & Fundraising K-W Old Timers Design -programming K-W Skatin Club Desi n related to winter use, location Ball Hocke Desi n related to summer use Lacrosse Desi n - ro ram m i n Public -Nei hbours Su ort of site &fundin Private RentalslAdult Lea ues Desi n - ro rammin Kitchener Rin ette Association Desi n related to winter use Secondary- Internal Design/Development - CSO Design, use of site parking Legal Agreements Operations Snow removal, landscaping, relocation of snow dump Athletics Design Fire Access, building, design IT Com uter connections, tele hones DTS Desi n, site - arkin ,traffic Inclusion Services/Barrier Free Desi n En ineerin Roads, sewer & storm draina e Purchasin Tenders, RFP's H/R Staffin /trainin Safe City Coordinator Facility Safety Secondary- External School board Access, programming Police Access Ambulance Access Parents/S ectators Seatin ,washrooms, concessions, lobb Officials -Referees Desi n General Public Pro rammin Boxin Partnershi Business Partnershi - fundraisin Public -Nei hbours Su ort of site &fundin PAGE 20 Corporate Plan Alignment Goal Level of Impact Explanation Service First High Additional ice surfaces will assist in alleviating some of the scheduling conflicts currently experienced. It will help the Municipality be responsive to the customer's needs. Change and Improvement Medium The growing population requires additional ice surfaces to service the needs of the user rou s. Customer Focused High Providing additional ice surfaces will allow for better service to our user rou s Community and Business Medium Improved access to ice times for the user groups, Relations Helps address the demands associated with new growth of the Cit . Compass Kitchener Alignment Goal Level of Impact Explanation Together, we will build an Medium innovative, caring and vibrant Community recreation facilities provide a gathering Kitchener with safe and area which assists in creating and maintaining a thrivin nei hborhoods health and vibrant communit . Community Spirit and Medium An inviting process that allows for neighbours, facility Ownership users, service groups, school boards and more to be involved in the development of a new twin pad. Involvin the ublic allows them to take ownershi . Innovative/Progressive/Creative Medium Looking at new technology to see if there are innovative ways of reducing energy needs. Leisure Facilities Master Plan Goal Level of Impact Explanation The provision of a balanced The twin pad facility would provide ice for minor sport mix of leisure opportunities, programming and ice for recreational skates for the involving recreation, arts, Medium public. Both ice uses would promote healthy living culture, minor sports, through exercise as well as team building and social education and linked access to development through programming. social, health and related services. The provision of geographically dispersed The central location of the Hansen site allows the facilities to meet changing minor sports organizations to provide a city wide market demands and Medium programming. The location also promotes a linkage population growth patterns, with a high school and a nearby YMCA. while ensuring key linkages with neighbourhoods, district and city wide service re uirements. PAGE 21 Summa The Twin Pad Arena Project represents along-term commitment to providing the recreational services the citizens of Kitchener value and need. As with all projects, there are risks associated that need to be considered. These risks are identified and considered from two perspectives: proceeding with the project and not proceeding with the project (status quo). Risk of Proceeding with Project Risk Probability Impact General Mitigation Strategy Project coming in over budget Medium Medium Revise design details and quality, fundraising, artnershi s Council not approving the Low Medium Revise design details and required amount of funds for quality, fundraising, the ro'ect artnershi s Project Delay -timing Low High Modify ice schedules, Operating difficulties i.e. reduce levels of service staffin , trainin Difficulty working with partners Low Medium Pull out of partnerships, -timing, funding, coordination delay partnership and add on later, reduce levels of service Project scope changes due to Medium High Attempt to incorporate new partnerships expectations of new partnerships into costs and design at an early sta e Funding Risk based on If negative outcome, City outcome of the Ontario Medium High would have to identify Municipal Board Hearing alternative source of related to the Development funding or defer the Charge Bylaw project until funds are available PAGE 22 Risk of Not Proceeding with Project (Status Quo) Risk Probability Impact General Mitigation Strategy Service level reduction High High Spread as much of the requested ice time over existing arenas, cancel some ro rams Forced to upgrade other High High Budget would have to facilities accommodate cost of u rades PAGE 23 Parameters of Project The 80,000 square foot facil~y on Hanson Avenue near the intersection of Ardeft Avenue will assist in accommodating the growth in population and programming while also allowing for meeting rooms, storage and offices, appropriately sized dressing rooms as well as a small retail component. Refer to Section 4 for details of the facil~y. The project has a preliminarily total budget of $15.5 million dollars (2007 dollars) incorporating a building construction estimate of approximately $110 per square foot, which indudes the arenas, offices and mechanical rooms. A detailed breakdown of the budget can be found in Appendix N. The building will be constructed as a Class B/C type building which incorporates a combination of the following bolded features: Class "B" Some block, steel construction F~osed insulation Prefab bundled ioe plarrt Upgraded material (eg. Pumps, roofing, block or beck type) Better sizing of space Eavestrough system for roof water disposal 30 - 35 year I'rfe e~ectancy Class "C" Prefab steel shell, steel siding and roof F~osed insulation Prefab bundled ice plant Eavestrough system for roof water disposal 20-30 year life expectancy PAGE 24 Capital costs (2007 dollars) Following is the capital budget for the Twin Pad Arena Project located on the Hanson Snow Dump. Refer to Appendix N for more detailed ir~ormation. Budget Studies and Fees $320,320 Building Construction 9,085,440 Site Development 1,892,800 Equipment 968,999 Off Site Development 208,000 Currerrt Faaliry Replacemerrt 603,200 Contingencies 2,408,135 Total Estimated Project Costs $15,486,894 Funding Sources for capital Costs The Twin Pad Arena project will be financed through a combination of current capital and development charge funds. PAGE 25 Twin Pad Arena Operating Costs Annual operating costs and income revenues have been projected for the 200812009 season using 2005 dollar values Revenues Admissions Skate Sharpening $ 1,500.00 Building Rentals $ 10,000.00 Ice Rentals $ 540,000.00 Room Rentals $ 25,000.00 Refreshments $ 15,000.00 Total Revenues $ 591,500.00 Expenses Salaries $ 30,660.00 F/B $ 8,240.00 Full Time Wages $114,000.00 F/B $ 55,860.00 Temp Wages $ 40,800.00 F/B $ 7,956.00 Parr Time Wages $ 21,600.00 F/B $ 4,212.00 Shift Premium $ 3,200.00 Lead Premium $ 2,900.00 Overtime $ 4,000.00 OnCall $ 6,000.00 Equipment Reserve $ 20,384.00 Operating Supplies $ 70,000.00 Uniforms $ 1,000.00 Training $ 4,000.00 Computer Telephones Heat $ 18,000.00 Water $ 10,000.00 Electricity $100,000.00 Insurance Auto Expense $ 2,000.00 Cell/Pagers $ 500.00 Misc $ 40,000.00 Total Expense $ 565,312.00 PAGE 26 Potential Stakeholders) Partnerships The project, as described in this document and its capital budget of $15.5M will provide a base Twin Pad Arena Facility to accommodate current and future programming needs previously described. The construction of a new Twin Pad recreational facility generates potential synergies with many other recreationally oriented user groups including; The Kitchener Minor Hockey Association (see attached letter Appendix 0), The K-W Oldtimers and the Lion's Club of Kitchener. The City has also had discussions with the Waterloo Regional Boxing Academy which is interested in developing a permanent facility for their programming on the site of this area. The Boxing Academy, for example, would require approximately 5000 square feet, which at a preliminary estimate, would cost approximately $600,000. They currently have a significant donor commitment of more than $200,000. A letter from the Boxing Academy identifying an interest in potentially partnering with the twin pad facility is contained in Appendix C of this report. The other user groups have also indicated specific needs with corresponding funding arrangements. City staff will be working with the user groups to determine specific needs, impact on the base budget and funding arrangements. Any increase in the base budget for the arena resulting from user group request will be brought forward for Council consideration in the form of a business case. Factors AfFecting Cost Estimates Several factors have an impact on either positively or negatively affecting the cost estimate and funding source for the construction of a Twin Pad facility. These factors include: • Additional sources of funding • Type of building class to which the building is being constructed • Accuracy of cost estimates • Partnerships that may affect scope, size and cost of the facility • Inflation and interest rates • Volume of construction work available within the Region PAGE 27 Net Annual Revenues $ 26,188.00 Conclusions The population growth of the City of Kitchener exceeds that of Ontario and Canada. It is anticipated that the city's population will reach 234, 500 by 2016, an increase of 33,000 people. In April 2005 an Ice Demand Study was completed that concluded that the current demand for ice time exceeds the supply. Twenty five user groups were surveyed, l6 of which had waiting lists for participation. The study further indicated that the number of people participating in these user groups is expected to grow by 17 to 19 percent by 2010, representing an additional 75 teams using Kitchener's arenas. The Kitchener Minor Hockey Association has identified that it will have a potential requirement for 40% more prime ice time by 2010 to support growth in its participation rates. City staff has thoroughly evaluated 24 properties over a period of several months, utilized real estate services as well as a Request for Proposal to search for privately held lands, and had two successful public open houses. This detailed site selection process has allowed Council to make a very informed and publicly supported decision on locating the facility at the Hanson Avenue Snow Dump site. Centrally located at Hanson Avenue and Ardelt Avenue, the City owned site is well positioned to service the growth of sport and population for the City of Kitchener. Construction of the new facility can be completed in time for the 2008/2009 ice season at a preliminary total project cost estimate of approximately $15.5 million, the least expensive of the final options that were considered. PAGE 28 List of Appendices Appendix A Evaluation Matrix of Twenty-Three (23) Potential Site for a Twin Pad Arena October 13, 2004 Appendix B Report CRPS-04-201 Capital Forecast Estimate for Twin Pad Arena November 22, 2004 Appendix C Potential Partnership Letter -Waterloo Regional Boxing Academy Appendix D Report CSD-05-066 Receipt of the Ice Demand Study June 13, 2005 Appendix E Report CRPS-05-112 Accelerated Implementation Schedule for Twin Pad Arena June 20, 2005 Appendix F Report CSD-05-083 Creation of the Arena Solutions Team June 27, 2005 Appendix G Property Search for a Twin Pad Site July 8, 2005 Appendix H Request for Letter of Interest - 05-071 for Partnerships for Twin Pad Arena August 15, 2005 Appendix I Maps From First Public Open House Public Information Package September 13, 2005 Appendix J Arena Category Definitions Levels of Quality (A,B,C); Photo examples October 4, 2005 Appendix K Report CRPS-05-151 Site Selection /Public Input- recommendation elimination of the park sites from further consideration October 17, 2005 Appendix L Second Public Open House Evaluation Matrix of Four (4) potential sites for the Twin Pad Arena November 17, 2005 Appendix M Report CRPS-05-180 Site Selection -Twin Pad Arena recommending the Hansen Avenue Snow Dump site as the preferred location November 28, 2005 Appendix N Hansen Avenue Snow Dump site characteristics list of pros and cons detailed cost estimate Appendix 0 Potential Partnership Letter -Kitchener Minor Hockey PAGE 29