HomeMy WebLinkAboutCSD-08-034 - Kiwanis Pk Operations Update and Recommendations
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Community Services
Report To:
Date of Meeting:
Submitted By:
Prepared By:
Community Services Committee
April 21 , 2008
Ward(s) Involved:
Date of Report:
Report No.:
Denise Keelan, Interim Director of Aquatics and Athletics
Denise Keelan, Interim Director of Aquatics and Athletics
( ext 2706)
All
April 13, 2008
CSD-08-034
Subject:
KIWANIS PARK OPERATIONS UPDATE AND
RECOMMENDATIONS
RECOMMENDATION:
That the City of Kitchener assume full responsibility for the operation of Kiwanis Park for
2008 and future years; and,
That the 2008 Kiwanis Park Budget, as attached to Community Services Department
report CSD-08-034, be approved, including the staff complement for the 2008 operating
year, with any net budget shortfalls to be funded as an operating over-expenditure; and,
That the Kiwanis Park Operating Committee be permitted to operate the Kiwanis Park
Snack Bar for the 2008 season, subject to the net revenues from its operation being used
for various park enhancements, such as picnic table replacement and shelter upgrades;
and,
That the Mayor and Clerk be authorized to execute an agreement, subject to the
satisfaction of the City Solicitor, with the Kiwanis Park Operating Committee, for the
operation of the Kiwanis Park Snack Bar for 2009 and future seasons, which shall include
direction on how the Snack Bar's net revenues are to be used; and further,
That the Kiwanis Park Operating Committee current reserve fund of $10,000. be applied
toward the repayment of their $75,000. outstanding loan, and future consideration of the
remaining loan balance be reviewed as part of the Snack Bar Agreement development
process.
BACKGROUND:
The Kiwanis Club of the Twin Cities has been an integral part of Kiwanis Park since the park
development in the early 1960's. In 1996 the initial agreement was formed that allowed the
volunteer committee of Kiwanis to manage all operations of this beautiful 119 acre park. Since
the early development of this agreement the Kiwanis have successfully operated the park each
year allowing both Kitchener and Waterloo residents a wonderful park setting at a low cost to
the customer. Each year thousands of unrecorded volunteer hours have allowed the park to
operate. Kiwanis members perform winter, spring and summer duties such as park
Report No: CSD-08-034
2
administrative and picnic bookings, payroll and park clean-up. The dollar amount of these
activities is very substantial. Each year 35,000 to 40,000 persons visit the park.
Historical highlights:
2001
· The City of Waterloo agreed to contribute to the park operations through the provision of
municipal water to service the park each season. Renewal of the 1997 agreement
between the Kiwanis Club and the City of Kitchener. The accumulated unfunded
deficient of $139,377 related to the maintenance of the park for 1996-1999 was forgiven
by council.
2002
· The City of Kitchener provided a loan of $75,000 to the Kiwanis club for the renovation of
the park pump house. The loan was to be repaid to the city based on amounts from any
annual operating surplus. Since 2002 the club has been unable to show profits in excess
of the amount they require as a reserve cash float for their annual start up funds.
2005
· Kiwanis Club repays the city a $15,000 loan used as a start up fund for the 2005 season.
2006
· $42,700 pool perimeter fencing investment paid by the City of Kitchener at the park.
REPORT:
Foremost in this report is the importance of recognizing and applauding the Kiwanis Club
volunteers who have provided decades of outstanding service and dedication to the park and its
success. The Kiwanis Club has operated the park using a small group of key volunteers for the
last number of years. These volunteers have contributed thousands of hours to the park
annually to keep the facility clean, operational, maintained and popular with its clientele. In
February of this year the Kiwanis Park operating committee requested that the City of Kitchener
take over the park operations for the current and future years. Reasons for this transformation
were offered as follows:
1. Financially, the park has been showing no excess revenues, beyond a required reserve
fund, each summer for the last 5 years.
2. Loss of a long term park manager has made summer hiring difficult for the last 2 years.
3. Kiwanis Club committee volunteers have decreased dramatically over the last 5 years,
long standing volunteers have stepped down, and replacements are difficult to recruit.
4. Expenses to operate the park have increased, including waste removal and staff wages.
5. The ongoing work that is needed to operate the park is an 8-10 month operation. This
obligation is too great for the current volunteers to commit to.
The Aquatics Division of Community Services Department has played an increasingly involved
role with the Kiwanis Park operations for the last 4-6 years. Assisting with summer hiring,
training of staff and Aquatic on-call issues were part of the summer responsibilities. For many
summers the Aquatic and maintenance staff has worked cooperatively to keep the pool
balanced, vacuumed and safe. Staff is prepared to take over the operations of the park based
on this familiarity and using the summer staff with experience to guide us through the first
summer. In cooperation with Facilities Management the pool component at the park is fully
managed by city staff.
Kiwanis Park Budaet
The attached budget has been prepared based on the actual revenues and expenses
recognized over the previous two years. Staffing as shown will operate the park for the opening
date of June 13th, 2008 through to the park closing August 24th.
Report No: CSD-08-034
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Snack Bar Operations
As far back as each of the operating agreements reflect, the Kiwanis have not been required to
show the audited statements for the Park Snack Bar. The volunteer committee indicates that
each year upgrades to picnic tables, Shelter areas, repairs to equipment and general park
improvements are paid out of the Snack Bar revenues.
Staff recommend that for future clarity of funding and assignment of repairs, an agreement be
formed to show how the funds are being used in the park. In the interest of time since the 2008
season commences in 6 weeks, an agreement will be formed for the 2009 operating year. Such
an agreement will allow the Kiwanis to remain active in the park, allow for the partnership to
move forward and provide funding towards the park operations and expenses. Financial
statements from the Snack Bar operations will be required from the Kiwanis at the completion of
each summer.
2002 $75~000 Loan to Kiwanis
Based on the 2002 legal agreement between City of Kitchener and The Kiwanis Club of the
Twin Cities, the repayment of this amount is now defunct. The cash float reserve held by the
Kiwanis in the amount of $10,000 is now payable to the city of Kitchener.
FINANCIAL IMPLICATIONS:
Based on the Kiwanis Club operating committee actual budget figures for the last 2 years an
estimated budget has been developed. With additional marketing and promotion we anticipate
optimistic revenues.
The cost to operate the park in 2008 is estimated at $169,410. Currently we have a budget of
$54,732 for Kiwanis Park, which is used for the maintenance of the pool. Staff estimates
revenue for the 2008 summer at $113,799 leaving a difference of $879 (shortfall) which may be
funded through an operating over-expenditure. However, in the event of a warm and successful
summer we may experience no budget impact at all.
CONCLUSION:
Kiwanis Park has been successfully operating for over 4 decades. Congratulations to the
Kiwanis Club on their years of exceptional service to this beautiful city facility. In
acknowledgment of their dedication and commitment to the park staff are in favor of maintaining
a positive relationship with the members by allowing them the opportunity to stay active within
the park.
CSD staff are prepared to take over the full operations of the park. Using the resources from
other departments, FM for all maintenance, Park operations for the grass cutting and waste
removal, IT for the phone and internet connections, Communications for further promotions and
special events, we are confident that the park will operate under excellent cooperation and grow
in usage in 2008.
Denise Keelan,
Interim Director, Aquatics and Athletics
Kiwanis Park 2008 Budaet
2006 2007 2008
Actual Actual Budaet
Revenue
Family Season Pass $ 1,122.66 $ 5,828.18 $ 5,980.00
Child Season Pass 245.27 247.86 246.57
Adult Season Pass 132.08 523.98 890.00 new adult evening pass
Season Pass Revenue $ 1 ,500.01 $ 6,600.02 $ 7, 116.57
Adult Admission $ 48,401.49 $ 52,565.31 $ 53,366.00
Child Admission 23,572.03 26,527.56 26,500.00
Senior Admission 2,844.36 3,419.10 3,131.73
Multi Pass Admission 1 ,943.36 2,515.34 2,229.35
Total Admission Revenue $ 76,761.24 $ 85,027.31 $ 85,227.08
Group Adult Picnic $ 8,558.48 $ 7,723.72 $ 8, 141 .1 0
Group Child Picnic 3,086.79 2,500.52 $ 2,793.66
Company Picnic 3,759.43 3,500.00 $ 3,629.72
Total Picnic Revenue $ 15,404.70 $ 13,724.24 $ 14,564.47
Camps and Schools $ 673.59 $ 3,149.28 $ 1 ,911 .44
Swimming Lessons 1 ,556.57 2,204.63 $ 4,980.00 now available on line, improved marketing
Total Special Event Revenue $ 2,230.16 $ 5,353.91 $ 6,891.44
Total Revenue $ 95,896.11 $ 110,705.48 $ 113,799.55
Expenses
summer staff
1 Park Supervisor $ 12,074.00
2 Head Guards 9,600.00
12 Lifeguards 28,040.00
4 Maintenance 8,640.00
4 Gatehouse 16,800.00
Benefits (260/0) $ 19,540.04
Wages&Benefits $ 69,682.89 $ 71 ,725.21 $ 94,694.04
Postage and Delivery $ 125.34 $ 247.31 $
Office Supplies 682.36 1 ,504.84 shared from aquatic facilities
Printing and Reproduction 1 ,252.80 1,000.15 no internal city charges applied
Telephone 952.59 1 ,241 .26
Grass Cutting 12,728.64 16,360.00 parks op will be maintaining
Maintenance-Other 5,300.97 5,322.47 5,311.72 FM plumbing, electrical charges
Waste Removal 1,477.21 1,816.68 1 ,646.95
Advertising 525.00 1 ,792.59 use existing Aquatic funds
Security 1 ,460.00 1 ,962.00 covered by Fm in operational funds
Hydro 2,185.73 2,756.14 2,470.94
Pool Maintenance Expenses 90,568.00 58,587.00 54,732.00 already in existing CSD budget
Admin and Maintenance Expenses $ 117,258.64 $ 92,590.44 $ 74,716.53
Total Expenses $ 186,941.53 $ 164,315.65 $ 169,410.57
Revenue Less Expenses $ (91 ,045.42) $ (53,610.17) $ (55,611.02)
Existing 2008 Budget Funding $ 54,732.00
Additional 2008 Funding Required $ (879.01 )
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