HomeMy WebLinkAboutCS 25-22
Report to Council
Report Number: CS 25-22
Date: December 5, 2022
From: Sarah Douglas-Murray
Director, Community Services
Subject: Recreation User Fee Study & Pricing Policy
-Consulting Services
-File: A-1440-001
Recommendation:
1.That Council approve the hiring of Monteith Brown Planning Consultants Ltd. and Tucker-
Reid & Associates to conduct a Recreation User Fee Study and develop a Pricing Policy
for Recreation Services in accordance with Purchasing Policy Item 10.03 (c), as the
assignment is above $50,000.00;
2.That the fee proposal submitted by Monteith Brown Planning Consultants Ltd. and
Tucker-Reid & Associates to conduct a Recreation User Fee Study and develop a Pricing
Policy for Recreation Service in the amount of $67,990.00 (HST excluded) or $76,828.70
(HST included) be accepted;
3.That the total gross project cost of $76,828.70 (HST included) and the total net project
cost of $69,187.00 (net of HST rebate) be approved;
4.That Council authorize the Director, Finance & Treasurer to finance the total net project
cost of $69,187.00 as approved in the 2022 Current Budget to be funded as follows:
a)The sum of $63,790.00 to be funded from Property Taxes;
b)The sum of $5,397.00 to be funded from the Community Benefit Charges Reserve
Fund; and,
5.That the appropriate officials of the City of Pickering be authorized to take the necessary
actions as indicated in this report.
Executive Summary: The City of Pickering Recreation & Parks Master Plan was
approved by Pickering Council in January 2018 (as per Council Resolution #389/18). The
Master Plan included the recommendation for the City to undertake a study to articulate the
costs to provide individual units of service (cost for set of swim lessons, maintain a sports field,
etc.) in order to develop an equitable and fair-minded Pricing Policy. As such, funds in the
amount of $70,400.00 were included in the 2022 Current Budget to undertake a Fair Minded
Pricing Policy.
At this time, staff are seeking Council’s approval to retain Monteith Brown Planning
Consultants Ltd. and Tucker-Reid & Associates at a total gross project cost of $76,828.70
CS 25-22 December 5, 2022
Subject: Recreation User Fee Study & Pricing Policy Page 2
(HST included) to conduct a Recreation User Fee Study and develop a Pricing Policy for
Recreation Services. Monteith Brown Planning Consultants Ltd. completed the Recreation and
Parks Master Plan for the City of Pickering and have completed several similar studies for
other municipalities within the province.
The Recreation User Fee Study is required in order for the Community Services Department to
demonstrate the development of fair and transparent rates, and equitable access to all
services. The Recreation User Fee Study will review and assess current fees, costs,
demographics, socioeconomics, participation and municipal benchmarks to develop a
thorough understanding of the current state. The Recreation User Fee Study will also develop
a scalable cost recovery model for recreational facilities, programs, services and user fees
while taking into consideration age groups, residents and non-residents, community and
private groups, subsidy levels, industry standards competition and indirect costs.
The Recreation User Fee Study will then inform the development of a Pricing Policy that will
provide the framework for fees as well as process for monitoring and fee updates. The
development of the Pricing Policy will serve to offer a defensible rate and fee schedule for
programs and services and as well to ensure the overarching principles are supported by the
community. This is a significant undertaking given that there are hundreds of programs and
services offered by the Department. This project addresses the need for the City to ensure that
recreation, museum, and special event fees reflect the cost to provide the services, and that
lower cost recovery levels reflect the social values of the community.
Monteith Brown Planning Consultants Ltd. and Tucker-Reid & Associates are leaders in
community engagement. Their consultation programs are designed to achieve maximum input
from all facets of the community, and utilize a variety of tools and exercises to solicit
meaningful feedback from community partners, staff, Council and residents.
While both Consulting Teams are well known for its parks and recreation master plan work
throughout the Province, they are also experts in the delivery of parks and recreation services
which has encompassed the review and development of a variety of policies. Some of their
recent work and relevant work to the City’s project includes:
• Town of Aurora Pricing Policy and Access to Recreation Policy, 2020
• City of Windsor Pricing and User Fee Policy, 2019
• Municipality of Middlesex Centre Rates & Fees Study, 2019
Financial Implications: The 2022 Current Budget (10200-502230) includes $70,400.00 for
consulting for a Fair Minded Price Policy. The quotation from Monteith Brown Planning
Consultants Ltd. and Tucker-Reid & Associates is $67,990.00 plus HST.
1. Proposal Amount
Quotation $67,990.00
HST (13%) 8,838.70
Total $76,828.70
CS 25-22 December 5, 2022
Subject: Recreation User Fee Study & Pricing Policy Page 3
2. Estimated Project Costing Summary
Quotation $67,990.00
HST (13%) 8,839.00
Total Gross Project Cost $76,829.00
HST Rebate (11.24%) (7,642.00)
Total Net Project Cost $69,187.00
3. Approved Source of Funds
Approved Code Source of Funds 2022 Budget Required
502230.10200 Development Charges $70,400.00 $0.00
– Growth Studies RF
502230.10200
Property Taxes 0.00 63,790.00
502230.10200 Community Benefit
Charges -RF 0.00 5,397.00
Total Funds $70,400.00 $69,187.00
Project Cost under (over) approved funds by $1,213.00
The project was included in the 2022 Current Budget to be funded from the Development
Charges Reserve Fund. However, upon conclusion of the Development Charges (DC) and
Community Benefit Charges (CBC) Background Studies this summer, funding for the Fair
Minded Price Policy study was changed from DCs to CBCs. This change was due to Bill 197 -
COVID-19 Economic Recovery Act, 2020, which amended the Planning Act, 1990, (section
37), that would no longer allow this type of “Study” to be funded from DC’s and instead
provided the revenue tool CBC to fund costs related to arts, cultures, museum and
administration services.
Discussion: In accordance with the Parks & Recreation Master Plan, it was recommended
that the City of Pickering articulate the costs to provide individual units of recreation services
(cost for set of swim lessons, maintain a sports field, etc.) in order to develop an equitable and
fair-minded Pricing Strategy.
The Recreation User Fees Study will contribute to strategic goals of maintaining a fiscally
sustainable system of community services facilities and programs. The City of Pickering strives
to provide a sustainable mix of facilities that enhance our quality of life while balancing
financial requirements to maintain the necessary infrastructure through use of partnerships,
development charges, user fees, sponsorships, tax base funding and other innovative financial
CS 25-22 December 5, 2022
Subject: Recreation User Fee Study & Pricing Policy Page 4
tools to ensure facilities are available to a broad range of residents. The study will develop a
vision and set of guiding principles that would address the issues of equity, fair-minded cost
recovery, and continuing to include residents of all ages. It will also ensure that user fees are a
reflection of true costs and that an Access Policy addresses affordability for those with lower
income backgrounds.
The City’s Parks and Recreation Master Plan recommended that staff work to fully understand
the costs of programs and services before a pricing policy can outline what percentage of the
costs should be recovered through rates and fees. The following provides a framework to
assist Pickering in setting a fair-minded pricing policy:
• Note that all programs and services should have a cost associated with providing them
whether they are fee based or are provided at no cost. Further, all costs in the
Department should be associated with providing a program or a service;
• Articulate all programs and service and the administrative supports required to provide
them including, but not limited to, administrative support, the development and
distribution of the City Leisure Guide, promotions, etc.;
• Differentiate between direct and indirect costs including hourly facility costs;
• Articulate the direct and indirect (facility and overhead operating costs) for each
program type. Determine an hourly cost and program/service cost (based on the
number of hours a program is designed for and the cost of annual and other
membership types); and,
• Based on the actual costs as determined, calculate the current cost recovery rates per
program and membership type.
The objective of the study is to provide strategic direction regarding user fees for indoor
recreational facilities such as arenas ice/floor, outdoor facilities such as sports fields and parks,
indoor and outdoor recreational programs, memberships and services, admissions, facility
rental fees, as well as, charge backs to community organizations for special events in the City
of Pickering.
The specific scope of the study includes:
Facility Rentals
• Ice/floor
• Parks – gazebos, picnic
shelters, general
• Sports Fields
• Pools
• Banquet Halls & Meeting
Rooms
• Gymnasiums
• Equipment Rentals
Admissions
• Swimming
• Racquet Sports
• Health club
• Gym
• Aquafit
• Skating
• Public Tours
• Museum programs
Leased Spaces
• Storage
• Tennis Clubs
• Community Centres
• Concessions
Programs (pre-school,
children, youth, adult & older
adult)
Services Ticketed & Community
Events
CS 25-22 December 5, 2022
Subject: Recreation User Fee Study & Pricing Policy Page 5
• Fitness • Personal & Small Group • Senior’s Events
• Sport Training • Pickering Museum Village
• Leisure • Child Supervision Events
• Aquatics, learn to swim,
leadership courses, first
• Community Centre
Memberships
• Free Community Events,
i.e., Waterfront Concerts
aid • Swim Passes • Guest Speakers &
• Educational Outreach • Free Teen Stuff Presentations
Programs
• Camps
• Museum programs
The process outlined in the proposal from Monteith Brown Planning Consultants Ltd. and
Tucker-Reid & Associates will engage stakeholders and the public in the setting of fair-minded
fees and further allow City staff to better understand the process of setting fees in the future.
An important part of our proposed methodology is to form a “Reference Group” consisting of
City staff, stakeholders of the local recreation system, and partners involved in delivery of
programs and services. The project will be completed over a six to nine month period in three
stages:
Phase One: Project Initiation
Phase Two: Development of the Pricing Policy
Phase Three: Refinement and Finalization
The Community Services Department will have a better understanding of current costs and
cost recovery levels for each service area. The proposal from Monteith Brown Planning
Consultants Ltd. and Tucker-Reid & Associates provides an achievable methodology and will
demonstrate the processes required by staff in the future in setting fees that are competitive,
reflect the costs to provide the service, and consider any fiscal barriers that the public may
face in accessing services.
Monteith Brown Planning Consultants Ltd. is a multi-disciplinary consulting firm specializing in
recreation and parks planning, municipal policy development, land use planning, project
management, and public consultation. As a multi-faceted consulting firm continually challenged
by diverse planning projects, Monteith Brown Planning Consultants Ltd. is a leader in the
preparation of effective and pragmatic needs assessments and feasibility studies. Over the
past 45 years, they have prepared over 400 parks, recreation, cultural and community services
studies for municipalities and organizations throughout North America.
Tucker-Reid & Associates is an innovative consulting firm specializing in strategic and
operational planning with a focus on recreation, parks, sports and culture. The principal, Claire
Tucker-Reid, has enjoyed a stellar career in municipal leadership positions for over 30 years
and has been consulting to the industry since 2003.
CS 25-22 December 5, 2022
Subject: Recreation User Fee Study & Pricing Policy Page 6
Attachments:
None
Prepared By: Approved/Endorsed By:
Original Signed By Original Signed By
Jody Morris Sarah Douglas-Murray
Manager, Community Services Administration Director, Community Services
Original Signed By Original Signed By
Jason Bekramchand Stan Karwowski
Senior Financial Analyst, Director, Finance & Treasurer
Capital & Debt Management
SDM:jm
Recommended for the consideration
of Pickering City Council
Original Signed By
Marisa Carpino, M.A.
Chief Administrative Officer