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HomeMy WebLinkAboutCSD-06-044 - Kitchener Soccer Transition Report ) ~ Community Services ~ Report To: Date of Meeting: Submitted By: Prepared By: Ward(s) Involved: Date of Report: Report No.: Subject: Community Services Committee March 15, 2006 Mark Hildebrand, Director Aquatics and Athletics Mark Hildebrand, Director Aquatics and Athletics All March 27, 2006 CSD-06-044 KITCHENER SOCCER TRANSITION REPORT RECOMMENDATION: That the Mayor and Clerk be authorized to enter into an Agreement with the Kitchener Soccer Club (KSC), subject to the satisfaction of the City Solicitor, to transfer responsibility of the Kitchener outdoor and indoor youth soccer programs to KSC, and further; That the funds being held in trust for the 2006 youth outdoor soccer program be transferred to KSC, and further; That a one time $25,000 grant, which was set aside for KSC from the 2004 and 2005 outdoor program profits (CSD-05-032), to be used for initial costs associated with transitioning and assuming the management of the soccer program, be approved and further; That the Mayor and Clerk be authorized to execute a licence agreement, satisfactory to the City Solicitor, with Kitchener Soccer Club for the use of office space at the Budd Park indoor facility. BACKGROUND: On September 30, 2003, at a Special General Meeting of the Kitchener Minor Soccer (KMS) Membership, the KMS Board of Directors brought forward a resolution to pursue the declaration of bankruptcy. Financial difficulties, associated with the purchase and renovations of the Doon racquet facility, was the main contributing factor. Believing there was significant need in the community, the Executive Board of the time was interested in converting the racquet facility into an indoor soccer park. With no capital funds to put towards this venture, the purchase and Report No.CSD-06-044 Page 2 renovations of this new facility were funded through debt as well as the proceeds of the approaching outdoor season. Expected revenues from the Doon facility were never realized by KMS, resulting in their insolvency as well as jeopardizing the anticipated outdoor season. The resolution to pursue bankruptcy was carried by a majority vote of the KMS membership. In response to the bankruptcy, the soccer program was transferred to the City of Kitchener, and a new organization called 'Kitchener Youth Soccer' was developed. An Advisory Board for Kitchener Youth Soccer consisting of community members and city staff made recommendations and provided advice on matters pertaining to developing the soccer programming and overseeing its implementation in Kitchener until such time that the program could again be managed by the community. The two fundamental goals of the Advisory Board included: " Working with City of Kitchener staff on the transition of soccer back to a community driven organization " Ensuring a 2004 and 2005 outdoor and indoor soccer program was delivered to the community. The Advisory Board has worked particularly hard over the past two years and is now at a point where they are prepared to put an Executive Board in place, made up of community members from the Advisory Board, and take responsibility for the soccer program and the associated budget. The intent of this report is to provide information to the Community Services Committee to give confidence that the necessary work has been completed to ensure the successful transition of a strong, viable soccer program back to the community. REPORT: The Transition Plan In the initial period of development, the Advisory Board met with city staff bi-weekly, in strategic sessions to develop a plan for the new soccer club. It was determined very early in the strategic sessions that a multi year approach was required to ensure the sustainability of the Club in the community. The Advisory Board and staff developed a strategic work plan which was refined into a transition plan. Coming to the end of the second year, this four year plan has been directing the activities of the group. The transition activities have been divided into three stages including the development stage, transition stage and the sustainment stage. A summary of each stage in the plan is provided along with the activities that have been completed. The development stage of the transition plan began as soon as the Advisory Board started meeting in strategic sessions. The Board concentrated on strategic planning and putting the necessary structure in place to help guide the club in the future. Specific activities that were completed during this stage included the following: · A Strategic Plan · An organizational structure (staff and volunteers) · A Constitution and Bylaw · Club operational policies and internal financial controls Report No.CSD-06-044 · Indoor and Outdoor program budgets · Volunteer and staff management procedures · Coach training package Page 3 The formal vision of the club is evident throughout the policies developed above and states: "We are dedicated to the development and promotion of soccer in our community through progressive training for players and coaches. We will promote sportsmanship, fellowship and fun through sport. " The Advisory Board selected specific roles within the new Kitchener Soccer Club structure and moved to populate the various committee positions in their portfolio. They shifted to the details of building office structures and policies as well as taking a more active role in the leadership and direction of the 2005 outdoor program and the 2005-2006 indoor program. Specific activities that were addressed during this stage included: Finance o Developing a chart of accounts o Accounting program purchase Source a bank and book-keeper Establish fiscal year end and budget transition plan o Develop sub-committee to review and track rep team finances Administration o Policy development for registration, refunds, fee assistance, deposits o Transfer of administration services from City to Club Insurance - including office equipment, BOD, employee benefits Office Licence Incorporation o Club Management Plan Marketing and Communication o Club brand and image o Annual marketing and communication plan and associated budget for · Participant registration · Coaching recruitment · Special events · Program evaluation o Fundraising and Sponsorship plan Programming o Program implementation plan o Needs assessment for player and coaching development Volunteers Recruitment Strategy Volunteer Policy Development · Screening · Recruitment · Retention · Recognition Report No.CSD-06-044 Page 4 Some activities, that are not vital to transition of the soccer program, are still outstanding. However, the new Kitchener Soccer Executive Board will continue to address these in the coming months. The sustainment stage of the transition plan begins upon consideration and approval of the recommendations by Council, and the transition of staff and soccer finances, currently being held in trust by the City of Kitchener, to the Kitchener Soccer Club. KSC will be required to inform Athletics staff of all Executive Board regular and special meetings during this phase and into the future, and provide the City of Kitchener the option to attend. During this phase, both senior staff and coordinator staff will remain available to the Executive Board to consult on matters, that may be program or board related, as they occur from time to time. In the next two years, the Executive Board and staff will provide quarterly update reports to Council outlining the progress of the soccer program. The Soccer Program Upon transfer of the program to the City of Kitchener, first and foremost in the minds of staff and the Advisory Board was the need to ensure that a soccer program, similar in scope to what has been offered to the community in previous years, was provided in 2004. KMS, in the midst of their financial difficulties, just came out of a 2003-2004 indoor season which did not run due to low registration numbers. This showed that confidence in the soccer program was critically low in the community and significant work would have to be done to demonstrate that a healthy soccer program was available again in Kitchener to residents. The goal of staff and the Advisory Board was the implementation of a house-league and competitive soccer program, similar in scope to that of previous years, and fully sanctioned by the South-West District Soccer Association and the Ontario Soccer Association. Considerable cooperation between the City of Kitchener, and the District and Provincial Executives was important in the attainment of this goal. The soccer program in Kitchener is traditionally made up of five components including the house-league recreational, competitive rep program, summer camps, Kitchener international tournament and the winter indoor program. As outlined in the chart below, participation rates have remained relatively stable over 2004 and 2005 and the Advisory Board is pleased that confidence in the program has been restored in the community. A small increase in participation is projected for the 2006 season due to program changes and planned growth. At this time approximately 2,300 participants have enrolled in the 2006 outdoor program. PrOQ ram 2004 2005 *2006 Total Outdoor ReQistrations 3,520 3,415 3,660 Competitive Teams 24 26 30 KIT Participation (# of Teams) 130 130 150 Indoor ReQistrations 637 645 660 * estimates for 2006 Although there is still some room for growth in the outdoor program, finding appropriate fields for teams is becoming increasingly challenging. The indoor program, which operates out of Budd Park, is close to capacity. It will be difficult to accommodate for more youth participants in the future without moving game times outside of traditional prime time hours and bumping adult teams out of the facility. Report No.CSD-06-044 Page 5 Parents and Coaches were surveyed and asked to evaluate the 2004 and 2005 outdoor seasons. Responses suggested that overall the community was very happy with the organization and delivery of the program. There are minor changes being implemented at the youngest age groups in the house-league program that are planned for 2006, however besides this, the program will look similar to what was provided in 2004 and 2005. City Soccer Budget The table below outlines the actual revenues and costs associated with the 2004 and 2005 soccer program as well as projected program revenues and costs associated with the 2006 program. It should be noted that the 2006 projected budget does not include revenues and costs associated with operating the Budd Park facility. As outlined further in this report, City of Kitchener will maintain control of the facility including the associated budget. 2004 2005 2006 Actuals Actuals Projected * Net Revenues $ 599,583 $ 782,847 $ 672,500 Net Expenses 585,262 749,062 655,500 Total Surplus (Deficit) $ 14,321 $ 33,785 $ 17,000 * 2006 projected budget does not include revenues and costs associated with Budd Park facility operations. Staff and the Advisory Board demonstrated over the course of 2004 and 2005 that a quality program can be run, at a surplus, at a price competitive within the tri-cities. The 2006 projected program budget is conservative and does not make significant changes from the 2004 and 2005 budgets. The Advisory Board have proposed a 4% increase in fees for the 2006 outdoor program, which has not been met with any resistance by participants. The 2006 budget also reflects additional operating costs that were not experienced in 2004 and 2005 including such items as: · Legal fees · Accounting and Book-keeping · Insurance Premiums (contents and BOD) · Banking Fees · Additional Staffing costs · Marketing and Advertising · Leasing costs · Removal of vending machine revenues (this remains with the City of Kitchener) The increase in Marketing and Advertising and additional staffing, are costs associated with the continued development of the club and would have been incurred if the City of Kitchener continued operating the soccer program. However, the remaining items above reflect additional costs that are associated with having the program managed by a volunteer group. Budd Indoor Soccer Park The Budd Park indoor soccer facility was constructed in 1990 as an addition to an existing 1978 building which provided washrooms and other utility space for the patrons of the park. The agreement between KMS and the City of Kitchener had the maintenance of the building controlled by the tenant. However, in 2003 Facilities Management became responsible for the maintenance of the building. A building audit, prompted by approximately 10 years of neglect, Report No.CSD-06-044 Page 6 outlined significant maintenance repairs and renovations to the building systems that had to be completed. In 2004, repairs focused specifically on the building envelop, roofing, HVAC, plumbing, electrical and life safety. Renovations were completed to provide accessible washroom facilities as well as bring the offices, foyer and eating areas up to acceptable standards. Finally, the indoor turf was approximately 5 years past life expectancy and a safety hazard. For the 2004-2005 indoor programs, a new turf system was also installed. Although the soccer program will be run by KSC, maintenance of the facility will remain with the City's Facility Management Department. Athletics staff has been moved to an office at Budd Park and will assist with oversight of the facility and ensuring that it is well maintained into the future. The indoor field costs associated with KSC use and programming in the Budd facility will be billed back to the club. Experience in 2004 and 2005 confirms that covering the field rentals can be accommodated within the KSC 2006 budget. The Executive Board In 2004 seven community members were interviewed and invited to participate on the Advisory Board to help the City of Kitchener with reviving soccer in our community. Of the seven members, only two were unable to keep their two year commitment due to personal life (job) changes. The other five members worked tirelessly to bring soccer to the point we are at today. Of the original seven community members, three have agreed to remain on the Board to ensure a smooth transition of the program. The following individuals will act in the following roles on the new Executive Board: · Scott van Rooy - President · Jim Daley - Treasurer · Linda Gilchrest - Secretary In addition, Andrew Connolly who joined the Advisory Board approximately six months ago, has agreed to stay on as the Vice President of Operations. Staff are currently working with the Advisory Board on interviewing and filling the remaining three Board positions. Forensic Review Resulting from the bankruptcy of Kitchener Minor Soccer, in September 2003 the City of Kitchener contracted KPMG to complete a forensic review with the intent of bringing a report forward to Council outlining the findings. In fall of 2004, the completed forensic review was forwarded by City of Kitchener legal staff to the Waterloo Regional Police Services to conduct an investigation. The report was not released to the public at this time in order to allow the police to conduct their investigation unimpeded by advance public knowledge of the report content. Waterloo Regional Police Services completed their review of the report and in October 2005 Council received the findings and directed staff to make the Forensic Review public following the application of the Municipal Freedom of Information and Protection of Privacy Act (CRPS- 05-162). Legal staff is prepared to release the Forensic Review to the public on Monday March 27,2006. Report No.CSD-06-044 Page 7 The findings outlined in the forensic review largely surrounded the dealings leading up to the purchase and sale of the Doon soccer facility. There are no recommendations forwarded in the review that deal specifically with how the City of Kitchener should relate with affiliated groups into the future. However, one could submit from the results that if the requirements outlined in the Minor Sport Affiliation Policy were followed more accurately by the KMS Executive, and enforced more rigorously by staff, the issues and challenges that were faced by the KMS could have been addressed sooner. Staff has made adjustments to the Affiliation policy to strengthen: i) the oversight of the policy and the reporting procedures between the City and the Minor Sport Affiliates and ii) internal procedures to properly execute the provisions and requirements of the affiliation policy. FINANCIAL IMPLICATIONS: Staff is requesting the approval of a one time $25,000 grant for KSC, being held in WTBI 621823. Staff is also requesting the transfer of funds being held in trust, in WTBI 631270, for the 2006 outdoor program. COMMUNICATIONS This report has been reviewed by Legal, Communications and Finance staff prior to coming forward to CSC. Mark Hildebrand Director, Aquatics and Athletics AP