COMMUNITY SERVICES DIVISION Parks & Recreation Department. Chair and Members of the Community and Corporate Services Committee

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1 Pg 1 of Report PR COMMUNITY SERVICES DIVISION Parks & Recreation Department TO: SUBJECT: Chair and Members of the Community and Corporate Services Committee Tyandaga Municipal Golf Course - Preferred Practice Facility/Learning Academy Preliminary Design and Business Plan Report Number: PR Report Date: August 18, 2009 Author(s): Catherine Talbot Date to Committee: September 16, 2009 Telephone: Ext Date to Council: September 28, 2009 Ward(s) Affected: All File Number(s): APPROVALS: Department Head General Manager City Manager To be completed by the Clerks Department Committee Disposition & Comments Council Disposition & Comments 01 Approved 02 Not Approved 03 As Amended 04 Referred 05 Deferred 06 Received & Filed 07 Withdrawn 01 Approved 02 Not Approved 03 As Amended 04 Referred 05 Deferred 06 Received & Filed 07 Withdrawn 1.0 RECOMMENDATION: THAT the preferred practice facility/learning academy preliminary design, dated August, 2009, prepared by Miller Golf Design Group, contained in Appendix A in PR 53-09, be approved, subject to formal approval from Conservation Halton and the Region of Halton; and THAT the practice facility/learning academy business plan, dated August, 2009, prepared by the Golf Management Institute of Canada, contained in Appendix B in PR 53-09, be approved; and

2 Pg 2 of Report PR THAT the Director of Parks & Recreation be authorized to proceed with a detailed design and the issuance of a tender document for the construction of the practice facility/learning academy and report back with the outcomes of the tender and REI by November, EXECUTIVE SUMMARY: N/A 2.0 PURPOSE: The purpose of this report is to seek Council s approval to proceed to issue the tender for the construction of the practice facility/learning academy at Tyandaga Municipal Golf Course ( Tyandaga ) in October, 2009, based on the preferred preliminary design and business plan, outlined in PR BACKGROUND AND RELATIONSHIP TO STRATEGIC PLAN: On February 23rd, 2009 Council approved Business Model Option 2 - Revitalized 18-Hole Municipal Golf Course for Tyandaga. This included improvements to the golf course infrastructure, including a new practice facility/learning academy, separate seasonal washroom building, new maintenance facility and an updated and expanded clubhouse, to better meet the year-round needs of our clients and the community. In April, 2009 as part of the Capital Budget and Forecast, Council approved a 2009 capital budget ($650,000) for Tyandaga that included modest improvements to the interior of the clubhouse and golf course and a new practice facility/learning academy ($465,000). At that time, Council directed staff to prepare a preliminary design for this facility and business plan for their consideration in fall, 2009, prior to proceeding to the next stage of this project. Through a bid process consultants were retained with expertise in golf course design and construction, business planning and environmental studies to work collaboratively with the Project staff teams. At a Special Community and Corporate Services Committee meeting on July 16, 2009, staff provided a verbal update on the status of this work and proposed timelines. The majority of the proposed practice facility/learning academy (practice range area) is located on a small portion of land, approximately 1.8 hectares (4.5 acres), adjacent to the golf course in the vicinity of Holes 15 and 16 that is owned by the Roman Catholic Diocese of Hamilton. The Manager of Realty Services has negotiated a 10- year lease with the Roman Catholic Diocese of Hamilton that permits the use for a practice facility/learning academy on a portion of their land. The City will pay a nominal annual rent to lease this land. The lease document is expected to be completed and executed this fall, The lease will not be executed by the City and will not take effect until after Council has approved the tender and construction of this facility. The number of hitting stations (tee decks) and location, the short game practice facility and the putting greens are located within the existing golf course, west of the maintenance facility (refer to Appendix A). This facility is approximately 366 metres (400 yards) from the nearest residential property lines and separated by Holes 15 and 14.

3 Pg 3 of Report PR DISCUSSION: 4.1 Process: Two concurrent processes are part of this project; the preliminary design for the practice facility/learning academy and the development of a business plan informed by the design and program for this facility. Consultants retained by the City have worked collaboratively through this process and have been in discussion with staff from Conservation Halton and the Region of Halton Public Works. The following are the steps that have been taken to date: 1. Background Information and Data Collection related to existing policies, regulations, approvals processes, studies, plans, etc. from approval agencies and the City 2. Completion of an on-site inventory of the environmental features of the property and adjacent lands (e.g. tree inventory, ecological assessment, survey of top of bank along water course, contours, etc.) 3. Development of preliminary design concepts and costing 4. Development of the business plan, including a best practices review, a preliminary Junior Golf and Learn-to-Golf Program, an operating plan and marketing framework 4.2 Project Teams: There are 2 teams that have been formed to oversee and work with consultants; one for the practice facility/learning academy and one for the Business Plan. The first team has staff representation from Parks & Recreation, Roads & Parks Maintenance, Legal, Engineering and Finance departments. The consulting team has expertise in golf course design and construction, landscape architecture and ecology. The Business Plan team is comprised of staff from Parks & Recreation, Finance and a consultant with expertise in golf course management and financial/business planning. Both teams report through a Steering Committee chaired by the Acting Director of Parks & Recreation, with senior staff representatives from Parks & Recreation, Finance, Clerks (Communications), Legal and the General Manager of Community Services. The Steering Committee provides strategic direction and approvals, as required to the Project teams and meets bi-monthly. This Committee also oversees the Request for Expression of Interest for Leasing Options for Tyandaga (see report PR 52-09, elsewhere in the Agenda). 4.3 Environmental Studies and Approvals: The City retained the consulting services of Glenn O Connor Consultant to prepare a tree inventory and tree savings/removal plan on the site as an assessment of the ecological features, required by Conservation Halton and the Region of Halton. Conservation Halton and Regional staff have had a number of meetings, including on-site, with the staff team and consultants during the data collection, site analysis and development of preliminary design options for this facility. At the time of writing this report, staff have received preliminary comments from Conservation Halton regarding the recommended set back from the top of bank of a minor tributary of the Upper Rambo Creek, along the east side of the property of 7.5 metres (8.2 yards).

4 Pg 4 of Report PR The consultant leading the environmental studies is currently working with the Region of Halton Forrester and Environmental Planner to confirm the setback from an identified Candidate Significant Woodland that has been identified under policy 132(5) of the Regional Official Plan, east of the water course. Staff expect that this will be determined by the end of September. Once all the information is submitted to both the Conservation Authority and the Region of Halton, staff expect confirmation of approval in a timely fashion. Both agencies are aware of the project timelines and need to finalize the design and tender the project this fall, subject to Council s approval. 4.4 Preliminary Design Options: Design Objectives: The development of the preliminary design options ( options ) were based on the following objectives: Design a quality facility that will attract golfers of all abilities To provide enhance golf programming for Junior and Learn-to-Golf clients (e.g. clinics, lessons, day camps; school recreational programs) Increase future golfer participation at Tyandaga Develop a practice facility range for hitting all golf clubs to target greens Develop a Short Game Zone to practice chipping and short approach shots Develop a Putting Green for practice putting. Comply with all environmental policy and regulatory requirements Options: Three preliminary design options were developed. Each option has the same number of hitting stations/ tee decks (26) and the short game practice facility and putting greens. The differences include the width of the practice range and the number and length of target greens depending upon the configuration of the layout and setbacks. The estimated construction costs varied slightly, based on the degree of grading, the number of features, the type of surface treatment in the area of the tee decks, etc Preferred Option: The proposed facility is approximately 3 hectares (7.5 acres), of which approximately 2.4 hectares (6 acres) are the range area (on lands owned by the Diocese and the City) and.6 hectares (1.5 acres) are the short game practice area (on land owned by the City). The consultant is recommending a preliminary design that includes the following features (refer to Appendix A): 5 target greens within the range area Length of the range area is approximately 264metres (289 yards) long Width of the range area is approximately 67metres-118metres (73yds-129 yards) wide

5 Pg 5 of Report PR hitting stations/tee decks 3 hole loop short game practice area Practice putting green Barrier netting along both sides of the range area Irrigation Ball dispenser and vending machine New and improved access to this facility No lighting 250 metres (273yards) from the existing clubhouse This option maintains the integrity of the design objectives listed above, it can provide a successful Junior Golf, Learn-to-Golf and seasonal golf camp programs, supported by a sustainable business plan (refer to Appendix B). The entire facility has been designed to comply with Conservation Halton setback requirement of 7.5 metres from the top of bank. The estimated capital cost to construct this facility is $464, (excluding GST). This cost estimate includes a 10% contingency, video analysis equipment for the learning academy/golf program and design fees Information Open House: A Public Information Open House is scheduled on Wednesday, September 9, at Tyandaga Clubhouse from 7:00 pm 8:00 pm. (authorized at the July 16, 2009 Special Community and Corporate Services meeting.) The preferred preliminary design will be on display and staff and the consulting team will be in attendance to give an overview of the design and business plan and to address any questions. Residents abutting Hole No. 15 in the vicinity of the practice facility/learning academy will be notified by letter. As well, the City s website will be updated to include this information and interested persons who are on the project mailing list will be sent an notification of this session. 4.5 Business Plan: A consultant was retained by the City to develop a detailed business plan for the practice facility/learning academy based on the preferred preliminary design and the Council approved business model option for an 18-hole revitalized municipal golf course. The business plan has incorporated the objectives of the practice facility/learning academy programming identified in Section 4.4. The Plan is contained in Appendix B and was developed in consultation with the design consultant, City staff and colleagues in the golf industry. For the purposes of providing a benchmark for comparison with potential submissions through the REI to operate the golf course, the Business Plan for the practice facility/learning academy was developed with the assumption that it would be operated by the City. Rates and fees are based on industry standards and the City s pricing structure (e.g. recreational day camps). The Plan contains detailed information and analysis related to: Best practices research of other similar facilities Facility specifications and estimated capital costs Equipment requirements based on industry standards A 3- year Operating Plan (revenues and expenditures) Summary of the Junior and Learn-to-Golf Program Debt service and Pay back period based on a 3-year pro forma Preliminary Marketing framework

6 Pg 6 of Report PR The business performance of this facility is based on a July, 2010 opening with the first full year of operation in Should any delays be experienced in the construction/opening of this facility, the revenues projected in the Plan will be adjusted accordingly. The recommendations within the Business Plan are supported by the Project Steering Committee and provides a solid sustainable financial pro forma that is expected to generate a steady stream of revenue for the golf course associated with an expanded golf program and amenity to serve the needs of a broad range of golfers (refer to Section 5.0 Financial Matters). 4.6 Proposed Next Steps: Subject to Council approval, the table below highlights the next steps and proposed timelines for the detailed design, tender, approvals and construction of the practice facility/learning academy. It is critical that these timelines are met in order to open this facility during the 2010 golf season and to achieve the first season s revenue generation projections identified in the business plan. Furthermore, tendering in October may yield more favourable results than postponing to a later date. TYANDAGA PRACTICE FACILITY CRITICAL PATH Task Name Estimated Timelines Preliminary Design Development June - Aug Environmental Studies June - Aug Business Plan Development July - Aug Committee/Council Report September Detailed Design and Agency Approvals September Land Use Agreement Sept - Oct Issue and Award Tender October Report to Council (Tender Results and REI) November If no interest on the REI, Council direction needed on award or no award of Design Tender If interest on REI without practice facility therefore becoming a full RFP, Council direction needed on award or no award of Design Tender. If interest on REI with practice facility therefore becoming a full RFP, Council direction needed on award or no award of Design Tender. Feedback from September 9 th Open House November Conservation Halton Permit November Site Preparation Nov-Dec Commence Construction Spring 2010 Opening July 2010

7 Pg 7 of Report PR FINANCIAL MATTERS: 5.1 Estimated Capital Costs: The proposed capital costs for the practice facility/learning academy is within the Council approved 2009 Capital Budget and Forecast ($465,000, excluding GST). The funding source for this facility is from non-tax supported debt. A detailed cost break down is included in the consultant s report in Appendix B. A contingency of 10% has been factored into the construction costs for this facility. Based on the business plan, the pay-back period for the nontax supported debt for the capital costs of this facility is 7 years, amortized over 15 years. This information was calculated in consultation with the Finance department. Project Management: Project Management will be done primarily in-house by Engineering staff. A modest internal charge back for advertising the tender and staff time to prepare the documentation will be charged to the capital order for this project. In addition, the design consultant will be assisting in specific Project Management tasks related to the preparation of the tender specifications and periodic site inspections during construction. These costs were part of the preliminary design consulting fees awarded through a competitive bid process. 5.2 Projected Operating Expenses and Revenues: The table below summarizes the 3-year operating plan for the facility prepared by the consultant (refer to Appendix B). Based on this analysis it is estimated that total revenues generated from golf lessons, clinics, day camps and general use will be $87,823 in year 1 (2010), $ 145,694 in year 2 and $187,966 in year 3. To achieve this targets, the consultant is recommending that a marketing budget be directed to promoting this new facility initially at $4,370 in year 1, increasing to $5,600 in years 2 and 3. Capital Expenditures Practice Facility Revenues* $465,000 Year 1 - $87,823 Year 2 - $145,694 Year 3 - $187,966 Total Operating Expenditures** Year 1 - $36,972 Year 2 - $58,345 Year 3 - $67,060 Practice Facility Net Revenue After Debt Service Year 1 - $4,551 Year 2 - $41,049 Year 3 - $74,606 *Includes all practice facility sales including revenues from golf balls, lessons, clinics and programs. ** Includes part-time instructors, operator of the facility, maintenance Budget Preparation: Subject to Councils approval, a business case for the operation of the practice facility/learning academy will be submitted as part of the 2010 Current budget, based on the consultant s business plan in Appendix B of PR

8 Pg 8 of Report PR ENVIRONMENTAL MATTERS: The construction methods and materials will meet the City s environmental standards and practises and the Conservation Halton regulations. The tree preservation and removal plan has been a fundamental reference document during the design phase of this project to ensure that significant vegetation has been protected. 7.0 COMMUNICATION MATTERS: Subject to Council s approval of the practice facility/learning academy Preliminary Design and Business Plan, the Tyandaga website will be updated accordingly. Notification of the tender will be advertised on the City s website, The Daily Commercial News, and the web based tendering site Biddingo. 8.0 CONCLUSION: The timing of approving a preferred design option and to complete the tender process to commence the construction of the practice facility/learning academy as part of the overall revitalization of Tyandaga is critical. To be able to open this facility during the 2010 golf season requires approvals to be in place in November, This will enable some site development preparation to occur before the end of this year with full construction during spring, The preferred design option meets all of the objectives of the project and is supported by a sustainable business plan. This facility is significant in generating new revenues associated with an expanded Junior Golf and Learn-to-Golf program for the community and is an amenity that will be welcomed by green fee golfers and members at Tyandaga. This facility will add value to the overall golf experience. For these reasons, staff are recommending that Council approve the preferred design and business plan outlined in PR and to authorize staff to proceed with detailed design and to issue the tender for construction once all approvals and permits are obtained. Staff will report back to Council in November, concurrently with the results of the tender award and REI to enable final decisions by Council on key next steps related to the Tyandaga Municipal Golf Course. Respectfully submitted, Catherine Talbot Manager of Enterprise Services Copy filed: s:\inet\

9 Pg 9 of Report PR Appendices: Appendix A: Preferred Practice Facility/Learning Academy Preliminary Design Appendix B: Practice Facility/Learning Academy Business Plan Staff / Others Consulted: Name Jeff Thompson - Engineering Gavin Kellogg Parks and Recreation Brad Weake Parks and Recreation Tyandaga Phase 2 -Steering Committee Members Steve Zorbas (Chair) Acting Director of Parks & Recreation Scott Stewart General Manager of Community Services Joan Ford Finance Ron Steiginga Legal Sean O Brady Clerks (Communications) Jazz Thandi Finance (Purchasing) Catherine Talbot Parks & Recreation Telephone Ext Ext Ext Ext Ext Ext Ext Ext Notifications: Name Mailing or Address Roman Catholic Diocese of Hamilton job@hamiltondiocese.com Jane DeVito Conservation Halton jdevito@hrca.on.ca Carolyn DeLoyde Region of Halton Carolyn.Deloyde@halton.ca Special Instructions: N/A