Queen ElizabethPool Infrastructure Assessment

Recommendation:
That the Queen Elizabeth Outdoor Pool be closed based on engineering results of the infrastructure assessment undertaken to date.

Report Summary

  • This report provides information regarding the current structural status of the Queen Elizabeth Outdoor Pool.
  • The report identifies that, as a result of serious water leakage from the pool tank at the end of the 2003 operating season, the facility requires significant investment to become operational.

Previous Council/Committee Action

  • At the April 6, 1999, City Council meeting, the following motion was passed:
  1. That the Larrie Taylor Architect Ltd. Queen Elizabeth Pool Study be received for information.
  2. That based on the results of the Queen Elizabeth Pool Study:

a)The Community Services Department spend up to $20,000 to address safety issues identified, (sources of funds: Facility Conservation budget – Operating budget);

b)No further capital investment in outdoor pool and water amenities be made at the Queen ElizabethPool site;

c)The Queen ElizabethPool be operated with no further capital investment until the end of its useful life; and

d)In the event of and at the time of major system failure of/at Queen ElizabethPool, the future of the facility will be evaluated at that time within the context of the overall needs.

  1. That the City remain open to consideration of any feasible proposal from the community or private operators for extension of the useful life of the Queen ElizabethPool.
  • At the August 18, 1998, Community Services Committee meeting, the following motion was passed:

That $25,000 from the 1998 Council Contingency Fund be allocated to the Community Services Department to conduct a feasibility study of the Queen ElizabethPool in the 1998 fiscal year.

Report

  • In the fall of 2003, Asset Management and Public Works Department engaged WaltersChambers and Associate Ltd. to investigate and evaluate the structural condition of Queen ElizabethPool with respect to significant water losses that occurred at the pool during the 2003 operating season. Their findings indicated that the facility is in very poor structural condition and the ground movement has resulted in major cracking of the pool tank, deck and the associated service building. This has resulted in water leaking from the pool below grade. They recommend that to continue to operate the pool on an interim basis, extensive remedial work must be performed.
  • The WaltersChambers study did not address the existing mechanical condition of the facility.
  • The WaltersChambers study did not include an assessment of any required bank stabilization or any soils work that may be necessary. Should bank stabilization be required it would necessitate the replacement of the pool tank.
  • Asset Management and Public Works Department concurred with the findings of the report, and identified additional mechanical and bank stabilization cost estimates.
  • In the event that Council wishes to keep Queen ElizabethPool operational, Asset Management and Public Works Department has indicated a value engineering assessment would be the most appropriate next step to determine a future course of action between continuing to operate the existing facility, upgrading the existing facility or constructing a new facility.
  • The facility assessment by Asset Management and Public Works Department will result in the facility remaining closed for the 2004 season. If the direction by Council is to repair the facility (at or before the 2005 budget process), it could be reopened by mid summer 2005.
  • On February 13, 2004, the Queen Elizabeth Pool Society submitted to the Planning and Development Department, an Application to Amend the Register of Historic Resources in Edmonton to add the Queen ElizabethPool to the Register. A decision is expected to be made by the Historic Resources Review Panel at their meeting on June 8, 2004. Their recommendation will go forward to the Edmonton Historical Board for approval on June 24, 2004.
  • The operation of the various outdoor pools has been run under a contracted agreement with Calido Recreation Management since 1983 (two facilities in 1984, two more added in 1992 and the final pool added in 1999). In July 2002 the most recent agreement was put into place for a three-year term, May 2002 to September 2004.
  • The current agreement identifies that the City is responsible for a percentage of the summer utilities as well as Building Trades Maintenance (where is this mentioned in the agreement?) support. The City receives no revenue from the agreement. The origins of this agreement were based on cost avoidance for the City.
  • The clause in the current LLicence Agreement that impacts this situation reads as follows: “Notwithstanding any other provision of this Licence, in the event of a major structural defect, breakdown of the boiler or of the mechanical system of any of the Premises being operated by the Licensee under the terms and conditions of this Licence, the City shall have the right to close the particular pool in question and immediately sever the pool and the portion of the lands on which that pool is located from this Licence Agreement, without any further obligations by the City to the Licensee and without any compensation of any form payable by the Licensee to the City.”
  • In addition the Licence Agreement indicates that either party may terminate the license without cause upon providing the other party with ninety days written notice.

Budget/Financial Implications

  • The interim structural work identified in The Walters Chambers study required to bring the facility back into operation has been estimated at costing $400,000.
  • The estimated cost provided by Asset Management and Public Works Department for mechanical work is in the order of $225,000 and $250,000.
  • If bank stabilization is required, Asset Management and Public Works Department has estimated the cost to be $350,000 in addition to the tank replacement.
  • Asset Management and Public Works Department has estimated that the cost refurbishment of the existing bathhouse/shower rooms would be in the order of $375,000.
  • In 1998, the LarrieTaylor report estimated that the replacement cost for the facility would be $2.1 million. With inflation, the replacement cost is now estimated at $2.6 million.
  • Possible sources of funding would be the 2005 Capital Priorities Plan or (depending on options and costs chosen from the Value Engineering Analysis) alternatively from the 2003 Capital surplus. Funding these repairs will necessitate the postponement or cancellation of another higher priority project(s) currently targeted for funding.
  • A “Value Engineering Analysis” could be completed by late fall for an estimated cost of $20,000 funded through Facility Conservation.
  • Repairs to the facility to bring it back to operational status would likely not result in any increased attendance, as the repair work would be virtually “invisible” to the public. Attendance at outdoor pools have always been very weather dependant.
  • A rough cost benefit analysis would indicate that, as there is no revenue to the City identified in the current operating agreement, there would be no financial gain or cost avoidance to the city as a result of any repairs made to the facility. The benefit received would strictly be as result of maintaining an existing service level.
  • Currently there is unused capacity at the four other outdoor pools as well as at the indoor pools in the area close to Queen ElizabethPool.

Justification of Recommendation

The capital costs required are high given the usage of an outdoor pool.

Legal Implications

The operation of the various outdoor pools has been run under a contracted agreement with Calido Recreation Management since 1983 (two facilities in 1984, two more added in 1992 and the final pool added in 1999). In July 2002 the most recent agreement was put into place for a three-year term, May 2002 to September 2004.

The current agreement identifies that the City is responsible for a percentage of the summer utilities as well as Building Trades Maintenance support. The City receives no revenue from the agreement. The origins of this agreement were based on cost avoidance for the City.

The clause in the current lease that impacts this situation reads as follows: “Notwithstanding any other provision of this Lease, in the event of a major structural defect, breakdown of the boiler or of the mechanical system of any of the Pools being operated by the Lessee under the terms and conditions of this Lease, the City shall have the right to close the particular pool in question and immediately sever the pool and the portion of the Pools on which that pool is located from this Lease Agreement, without any further obligations by the City to the Lessee and without any compensation of any form payable by the Lessee to the City.”

In addition the lease agreement indicates that either party may terminate the lease without cause upon providing the other party with ninety days written notice.

Background Information Attached

  1. Outdoor Pool Attendance History 1980-2004.
  2. 2003 Operating Cost Analysis/Net Cost Per User Details.

Others Approving this Report

  • W. D. Burn, General Manager, Asset Management and Public Works Department
  • J.Tustian, General Manager, Corporate Services Department

(Page 1 of 3)

Attachment 1

Outdoor Pool Attendance History 1980 - 2004

FACILITY / 1980 / 1981 / 1982 / 1983 / 1984 / 1985 / 1986 / 1987 / 1988 / 1989 / Average
MILL CREEK / 33540 / 52893 / 51209 / 45151 / 55785 / 49545 / 47199 / 26417 / 42261 / 30374 / 43437
BORDENPARK / 26437 / 20915 / 25759 / 17839 / 6263 / 13100 / 9015 / 9534 / 8835 / 11700 / 14940
FREDBROADSTOCK / 34608 / 28264 / 32778 / 26237 / 22884 / 20000 / 28654 / 33073 / 22714 / 24987 / 27420
OLIVER / 25542 / 22135 / 27635 / 19129 / 17174 / 13267 / 16868 / 16810 / 10603 / 12770 / 18193
QUEEN ELIZABETH / 25296 / 18180 / 27635 / 20788 / 10516 / 19077 / 18536 / 17720 / 19861 / 16700 / 19431
FACILITY / 1990 / 1991 / 1992 / 1993 / 1994 / 1995 / 1996 / 1997 / 1998 / 1999 / Average
MILL CREEK / 42343 / 34452 / 35107 / 19397 / 29317 / 24692 / 35131 / 31143 / 31825 / 39286 / 32269
BORDENPARK / 14458 / 19679 / 9490 / 5702 / 6272 / 3777 / 7320 / 6873 / 7427 / 6466 / 8746
FREDBROADSTOCK / 26751 / 25671 / 29703 / 18527 / 21497 / 19769 / 29226 / 26080 / 27924 / 16666 / 24181
OLIVER / 17068 / 16250 / 13343 / 7308 / 8217 / 5688 / 8027 / 6731 / 8579 / 5501 / 9671
QUEEN ELIZABETH / 17720 / 24128 / 23259 / 11488 / 20428 / 15350 / 21655 / 19276 / 17374 / 13417 / 18410
FACILITY / 2000 / 2001 / 2002 / 2003 / 2004 / 2005 / 2006 / 2007 / 2008 / 2009 / Average
MILL CREEK / 28798 / 28798 / 29705 / 39590 / 31723
BORDENPARK / 5658 / 6542 / 7331 / 8144 / 6919
FREDBROADSTOCK / 23055 / 24120 / 23503 / 26242 / 24230
OLIVER / 4900 / 6661 / 7168 / 6354 / 6271
QUEEN ELIZABETH / 14344 / 15631 / 17140 / 13500 / 15154

Attachment 1 - Page 1 of 111

Attachment 2

2003 Operating Cost Analysis/Net Cost Per User Details

______

Total
Revenue / Operating
Costs / Utility bill-back
to contractor / Tax
Levy / Building
maintenance
5 Year Average / Total
Costs / Capital
Costs / Attendance / Subsidy Per
User
BordenPark / 34,109 / N/A / 34,109 / 37,308 / 71,417 / 11,414 / 8,144 / 8.77
Oliver / 138 / 30,764 / N/A / 30,626 / 39,694 / 70,320 / 6,354 / 11.05
Queen Elizabeth / 41,578 / 16,365 / 25,213 / 41,020 / 66,233 / 13,500 / 4.91
Mill Creek / 25,758 / 25,758 / 0 / 48,667 / 48,667 / 39,590 / 1.23
FredBroadstock / 27,288 / 10,731 / 16,557 / 56,213 / 72,770 / 26,242 / 2.77
Total/Average / 138 / 159,497 / 52,854 / 106,505 / 222,902 / 329,407 / 11,414 / 93,830 / 3.51
5 YEAR BUILDING TRADES MAINTENANCE COST AVERAGE FROM 1999 TO 2003
1998 / 1999 / 2000 / 2001 / 2002 / 2003 / 5 YEAR
AVERAGE
Borden / 43,198 / 42,494 / 46,450 / 32,645 / 29,191 / 35,759 / 37,308
FredBroadstock / 68,376 / 63,265 / 44,757 / 49,083 / 79,460 / 44,502 / 56,213
Mill Creek / 67,052 / 47,082 / 45,359 / 36,101 / 59,681 / 55,114 / 48,667
Oliver / 51,617 / 27,307 / 33,612 / 33,066 / 51,120 / 53,363 / 39,694
Queen Elizabeth / 55,317 / 41,933 / 33,570 / 34,296 / 38,664 / 56,639 / 41,020
285,560 / 222,081 / 203,748 / 185,190 / 258,116 / 245,376 / 222,902

Attachment 2 - Page 1 of 111