Report to/Rapport au :
Health, Recreation and Social Services Committee
Comité de la santé, des loisirs et
des services sociaux
and Council / et au Conseil
7 September 2005 / le 7 septembre 2005
Submitted by/Soumis par : Steve Kanellakos, Deputy City Manager/Directeur
municipal adjoint,
Community and Protective Services/Services communautaires et de
protection
Contact
Person/Personne ressource : Aaron Burry, Director
Parks and Recreation/Parcs et Loisir
(613) 580-2424 x23666, aaron.burry@ottawa.ca
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SUBJECT: |
NEPEAN NATIONAL EQUESTRIAN PARK
COMPETiTIVE SERVICE DELIVERY REVIEW |
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OBJET : |
parc équestre national de nepean – examen de la prestation
concurrentielle des services |
REPORT RECOMMENDATION
That Health,
Recreation and Social Services Committee recommend that Council approve the
Service Delivery options proposed in this report to achieve 100% cost recovery
at the Nepean National Equestrian Park.
RECOMMANDATION DU
RAPPORT
Que le Comité de la
santé, des loisirs et des services sociaux recommande au Conseil d’approuver
les modes de prestation de services proposés dans le présent rapport afin
d’assurer le recouvrement intégral des coûts au Parc équestre national de
Nepean.
EXECUTIVE SUMMARY
The Nepean National Equestrian Park (NNEP) is located in Ottawa’s greenbelt and is a unique and multifaceted recreation facility. One of the principal objectives of the Nepean National Equestrian Park is to help ensure that the needs of an increasingly diverse population are met. This objective is illustrated by the Park’s focus on providing introductory horse riding lessons, which attracts a large number of young women and disabled individuals. The facility also provides boarding to twenty-one (21) privately owned horses, which represents a small portion of the approximately 1000 horses boarded across the city each year. Through the Friends of the Park volunteer group, the boarders provide volunteer time in support fund raising, for minor capital projects and help the NNEP staff during Equestrian events hosted by the Park.
In 2004, the operating deficit at the Nepean National Equestrian Park was approximately $142,000. During the 2004 budget process, Council directed staff to develop service delivery options that would be full cost recovery while keeping in line with the NNEP's service mandate. Staff have developed service delivery options to achieve this objective.
RÉSUMÉ
Le Parc équestre national de Nepean (PENN),
situé dans la ceinture de verdure d’Ottawa, est une installation récréative à
la fois unique et polyvalente. Un des principaux objectifs du PENN est de
répondre aux besoins d’une population de plus en plus diversifiée, comme
l’illustre l’importance accordée aux cours d’initiation à l’équitation, qui
attirent un grand nombre de jeunes femmes et de personnes handicapées. Le PENN
héberge aussi vingt et un (21) chevaux appartenant à des particuliers, ce qui
ne représente qu’une faible proportion des quelque 1 000 chevaux gardés en
pension dans la ville chaque année. Par l’intermédiaire du groupement bénévole Friends of the Park (Les amis du Parc),
les propriétaires de chevaux en pension collaborent bénévolement aux activités
de financement et à de petits projets d’immobilisation de même qu’ils viennent
en aide au personnel du PENN à l’occasion de différents événements.
En 2004, le déficit d’exploitation du Parc
équestre national de Nepean a été d’environ 142 000 $. Au cours du
processus d’établissement du budget de 2004, le Conseil a donné instruction au
personnel d’élaborer des modes de prestation de services propres à assurer le
recouvrement intégral des coûts, dans le respect du mandat de service du PENN.
Le personnel a établi diverses formules permettant d’atteindre cet objectif.
The Nepean National Equestrian Park (NNEP) is located in Ottawa’s greenbelt and its primary focus is introductory horse riding lessons. It has operated as a municipally run facility since 1986 (by the former Nepean City). In addition, the park provides care and maintenance to approximately fifty-two (52) horses and 270 acres of farmland – ten (10) of which are dedicated to equestrian events. The remaining 260 acres are used for haying (approximately 10,000 bales annually), grazing, and providing a venue for exposure to rural activities and farm life.
One of the park’s objectives is to ensure that the needs of an increasingly diverse population are proactively addressed in accordance with the policy directives contained in the Ottawa 20/20 Human Services Plan. The Park achieves its objective by offering introductory horse riding lessons, which attract a largely female population (approximately 95%) making the park a key recreation facility in supporting women and girls in Ottawa. In addition, the park works in partnership with the Crystal Bay School, a school for children with developmental disabilities and also the CNIB with their summer camp program.
During the 2004 budget process, City Council directed staff to develop service delivery options that would lead to full cost recovery while keeping in line with the NNEP's service mandate.
ANALYSIS
Description of Service Delivery
The 270-acre farm is leased from the National Capital Commission (NCC) at a cost of $20,000 per year, paid in 12 monthly payments. The land is zoned GR (Greenbelt Rural zone) and the NCC lease specifices that the land “be used solely for the purpose of operating a first class public facility for non-commercial recreation as well as for competition and training in equestrian events, whether on a commercial basis or otherwise…”[1].
In 2004, the Park had 12.89 FTEs and a total operating deficit of $142,000 (83% cost recoverable). This is a much higher rate of recovery than other recreation facilities across the City. For example, the average recovery rate for pools is 60%, the average recovery rate for arenas is 76%.
The park provides three different types of activity, each with its own revenue source: Riding lessons, Boarding horses, and Facility rentals and events.
Activity
Types
Riding lessons
Staff, at the Nepean National Equestrian Park, delivers
introductory riding lessons to approximately 320 students per week on average
throughout the year. This program
serves as an introduction to horse riding to students who may eventually pursue more
advanced riding classes at other stables in the area. Staff also offer March
break and summer day camps and provide special needs programming. The latter is conducted in conjunction with
Crystal Bay School - a local school for students with developmental
disabilities. The park staff also
provides support to an annual summer riding camp for the CNIB.
A public education component in the Park’s mandate results in the delivery of lectures to students and the general public to further the knowledge of the sport and rural life.
Park staff organize spring and summer equestrian-related special events that are governed by Equine Canada. Staff host or organize approximately eleven events per year attracting approximately 45,000 visitors annually. Events are in the disciplines of Dressage, Hunter Jumper and Eventing - the three disciplines that are Olympic events. As a result, these are the areas that are showcased at the local, regional, national and international events. The 2005 Capital Classic attracted 30,000 spectators.
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Activity |
Availability |
Actual |
Percentage |
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1,478 hours |
1,478 hours |
100% |
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Registration in programs |
2,785 |
2,247 |
82% |
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Boarding spaces |
21 |
21 |
100% |
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Rental hours |
7806 |
6,238 |
80% |
There are, however, limitations to the use of the site both from a size and frequency of event as well as the type of event permitted under the terms of the lease. There are 10 acres at the park that are designed and purposely built for Equestrian related activities. The remainder of the park is dedicated to growing crops; pasture land for animal grazing and a wetland waterway. The site can only accommodate approximately fourteen (14) events per season, as time is required for site rehabilitation such as clean up and field restoration between each event. In addition, under the terms of the lease, the site must be used solely for the purpose of operating a first class public facility for non-commercial recreation as well as for competition and training in equestrian events. [2] “Any proposed use that differs from the above, must be submitted to the Director, Design and Land Use…”[3] (with the NCC) for review and approval.
Options Analysis
In 2004, the net operating deficit for Nepean National Equestrian Park was $142,000 (83% cost recovery). Staff was tasked to develop options that would result in full cost recovery of the operations at the park. Using the Competitive Service Delivery Review methodology, staff developed options for achieving this rate of recovery. These options were evaluated against a list of mandatory and desirable criteria in an effort to assist staff in selecting options to pursue. In reviewing the options, the team reviewed the City’s contractual obligations under the NCC lease, risk management issues and labour relations issues while ensuring options maintained the integrity of the City’s 20/20 Vision and aligned with the Departmental and Branch mission and mandate. The evaluation criteria and associated definitions are listed below.
Evaluation
Criteria
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Criteria |
Definition |
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Cost |
Proposed option must result in 100% recovery of operating costs |
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Contractual obligations |
Proposed option must meet contractual obligations with the landlord NCC. |
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Criteria |
Definition |
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Environmental impact |
The degree to which the proposed option is in accordance with the City’s pesticide policy or follows environmentally friendly practice |
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Accessible |
The degree to which the proposed option would remain affordable and provide programs for individuals with special needs |
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Minimal impact on the existing client base |
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Community involvement |
The degree to which the proposed option continues to provide opportunities to individuals to gain equine and rural lifestyle knowledge and to contribute to the community |
Service
Delivery Options
Re-engineering, a process by which an organization’s operations are evaluated and restructured to improve efficiency and effectiveness, was identified as the preferred option for the park staff to pursue given that modifications to existing practices would allow the City to meet its mandatory obligations under the terms of the lease, result in 100% cost recovery as directed by Council while still respecting the desirable criteria and the park’s mandate as discussed previously.
A benchmark exercise was conducted to review the operations of eight (8) other Equestrian facilities around the country and the world. The results indicated that there are few municipally owned facilities in Canada and as such it is difficult to secure budget information from comparable privately operated Equestrian facilities. The one park that is municipally operated is in Blainville Quebec. Both the services and the operating structure at Blainville are very different from Ottawa’s Equestrian Park. Blainville is mainly a rental facility for special events with no programs or boarding facilities for local residents and therefore was not a direct comparator. A fees comparison with similar private facilities in the surrounding Ottawa area indicated that the NNEPs current rates for boarding and/or lessons were marginally less or comparable with other local stables and opportunities to increase revenue through increased fees were minimal. Since boarding was already at 100% capacity and the rates were also comparable to other local farms, staff determined that no additional revenues could be generated within the boarding program or through increased fees for lessons.
After a comprehensive analysis of the park’s operations, staff recommend the following revenue opportunities or service reductions for implementation in an effort to achieve Council directed 100% cost recovery of the operations:
Increase
Program Registrations
Since
riding fees were comparable with other local riding schools opportunities to
increase fees are minimal. However, over the next three years, the NNEP staff
will target marketing activities in an effort to increase registration by 5%
(from 82% to 87% participation in existing programs) or by 37 additional
students for an anticipated increase in revenues of $25,000 annually.
Sponsorship
Revenue
In
addition, the school will pursue potential sponsorship at the Park, e.g. naming
rights due to its prime location near the Queensway (subject to the approval of
the National Capital Commission and in
accordance with the Corporate Sponsorship Policy) for a projected annual
revenue stream of approximately $34,000.
Boarding
There
are no significant changes to the current service recommended. During the benchmarking exercise, staff
determined that boarding rates were comparable. In addition, the NNEP’s boarding consistently achieves 100%
capacity and provides volunteers through its Friends of the Park volunteer
group. This group raises funds for
minor capital projects and support the staff during special events and with the
special programs.
Facility
Rental and Events
Currently, the City incurs
overtime and purchase of service costs to support the event organizers during
events such as the Capital Classic Show Jumping Tournament, Equivents and the
Ottawa Carleton Horse Trials. Support
to an event includes provision of staff during the event, and the provision of
services such as a water truck for watering the dirt tracks, which the City
must contract out to a private service provider. In addition the City provides road maintenance and materials, and
the provision of bleachers at a cost to the City of $28,000 in 2004.
The direction that staff are
recommending is similar to that of other events hosted by the City in
recreation facilities whereby the City provides the location under specific
terms and conditions but does not directly support the event. The NNEP park staff would however continue
to assist event planners by providing them with contact information for
volunteers, student workers, water trucks, bleachers, road maintenance
etc. Staff considered passing direct
costs for the additional support onto the event organizers in an effort to
achieve full recovery; however, event organizers can purchase a similar level
of support at a lower cost by contracting these services themselves. Consequently, staff propose that the
organizer purchase their own event support at the lower cost.
In addition, the
NNEP will plan for several new Equestrian events: a second Show Jumping event, a Western Reining event, and an additional Horse Trials
event. The additional events will be
phased in over a 2 to 4 year period by meeting with prospective event operators
and by promoting the equestrian park facility.
Preliminary discussions indicate a potential for increase in revenues of
approximately $55,000.
All options combined will result in a net increase in revenues
of $114,000 with an accompanying
efficiency/reduction in service and associated costs of $28,000 for a combined
solution totalling $142,000. The
current deficit at the park is approximately $142,000. By implementing the proposed re-engineering
options, the park would operate at 100% cost recovery while respecting
evaluation criteria adopted by the branch and the Nepean National Equestrian
Park mandate per Council direction. All revenue increases are anticipated over
the next four (4) years, while the service reduction to the Equestrian events
can be implemented and associated savings can be realized over the next two (2)
years.
CONSULTATION
Consultations were held with the Parks and Recreation Advisory Committee
and key stakeholders prior to presenting this report to HRSS. Key stakeholders included Capital Classic
Show Jumping Tournament and Equivents.
Parks and Recreation Advisory Committee were
presented with a written summary of the recommendations outlined in the
report. They were supportive of the
initiatives presented.
Staff met with The Capital Classic and
Equivents representatives and provided an overview of the proposal; the
stakeholders expressed concerns regarding the transfer of additional costs to
the event operators.
Staff contacted the City’s Economic Development branch who provided the
following comment: “ While unsure of the overall economic impact or
national reach of this event [National Capital Classic], the Economic
Development branch recognizes the important role that locally-hosted national
and international sporting events can play in increasing Ottawa's visibility
and awareness. Any event that brings visitors and increased spending into the
community is positive.
The
Economic Development branch focuses on strategic initiatives that will support
Ottawa's growth and prosperity, and as such, does not provide direct support to
recurring events, such as this.”
FINANCIAL IMPLICATIONS
Overall, as a result of this report, the Nepean
National Equestrian Park will bring in a net budget reduction to their 2005
operations of approximately $30,000.
Revenue and expenditure budgets will be adjusted accordingly. Future budgets will address any expenditure
or revenue changes related to union contracts and cost of living to maintain
the 100% cost recovery model for this facility.
DISPOSITION
Parks and Recreation Branch to coordinate implementation of the Service Delivery options approved
by Council as part of this report.
[1] Agricultural Farm Lease between National Capital Commission and the Corporation of the City of Nepean December 2, 1996.
[2]Agricultural Farm Lease between National Capital Commission and the Corporation of the City of Nepean December 2, 1996.
[3] Memorandum: Federal Land Use Approval for the Granting of a Long Term Lease to the City of Nepean for the National Capital Equestrian Park, 402 Corkstown Road, Nepean February 16, 1996.