Oversight, Staffing, and Sale of Lands

Last Tuesday, Council held a special meeting to learn more about development charges, discuss project oversight and staffing of the new Community Centre, and move ahead on land sales / development.

Development Charges:
A Provincial expert in Development Charges affirmed that over the next 30 years, the Town is eligible to collect at least $12.1 million from the recreation services portion of the Town's Development Charges. Development Charges will also fully-fund all interest costs.

Because this revenue will only be for the indoor recreation services portion of the collectable Development Charges, funds will still be available to help pay for other growth related infrastructure throughout the Town – including roads, water, wastewater, fire services, library services, and transit.

Project Oversight:
Council approved establishing a Community Centre Oversight Committee that will ensure the project will be constructed on time and on budget. The small, volunteer Committee will supervise the project’s schedule, budget, quality of construction, final design, health and safety, and other risk mitigation measures. They will provide monthly reports to Council (and to the public at www.pelham.ca/community-centre). Council will consider the Committee’s terms of reference and members on June 6.

Council also approved the CAO’s recommendation to hire a financial specialist on contract (18 to 24 months) to oversee all financial elements of the Community Centre and the East Fonthill development. This dedicated position will not only provide constant financial management, but will also allow current staff to maintain the rest of the Town’s operations.

Staffing for the Centre:
The HR Director presented the first iteration of the proposed staffing needs to operate the Pelham Community Centre. The operating pro forma presented to Council in March – which shows it will cost approximately $110,000 (net) per year to operate the Centre – contained $611,699 for new staffing. While this first-draft shows 18 new staff – four (4) full-time, six (6) part-time, and eight (8) seasonal – staffing details will continue to be refined over the coming months as the Town prepares to open the facility.

Sale of Lands:
Council reviewed a comprehensive inventory of all the lands that could be considered and disposed of by the Town for development. Council further directed staff to develop a strategy, including the drafting of conceptual plans, for the sale the East Fonthill surplus lands (19.75 acres) and the Haist Street arena property (8.2 acres). Council also approved an Environmental Impact Study so that 12 tax-sale-lots owned by the Town on the unopened portion of Balfour Street (between Chantler and Webber Roads) might be sold.

Council continues to take steps to monitor and oversee the construction of the Community Centre and to ensure the financial plan is realized.

New Municipal Drain Policies Approved

You may recall that last fall Town Staff sent out several notices requesting payment for maintenance done on some of the Town’s Municipal Drains. There were many questions about the bills and Staff even had to correct some bills.

Council listened to these concerns and directed Staff to hold an Open House in October to answer any questions or concerns.

As a follow-up, Council directed Staff to re-examine and revise the Town’s Municipal Drain policies and procedures. Council approved those policy changes on May 2.

A Municipal Drain is a legislated drainage system for a sub-watershed within the Town. Most municipal drains are either open ditches or closed systems such as pipes or tiles buried in the ground. While Municipal Drains are primarily located in rural agricultural areas, they can also drain parts of the Town’s urban areas. Some Municipal Drains could also include structures such as storm water detention ponds, culverts and bridges.

A Town may only create a Municipal Drain under the authority of the Drainage Act. Municipal Drains include three-key elements.

Community Project: Landowners who need to solve a drainage problem may submit a petition under the Drainage Act to request the establishment of a municipal drain. If certain criteria are met, the Town appoints an engineer to prepare a report, identifying the proposed solution to the problem and how the costs will be shared. The Act outlines various meetings and appeal stages before the community project can be approved.

Legal Solution: After any appeals, the municipality passes a by-law, adopting the solution. The municipality then has the authority and responsibility to construct the drain. The cost of the work is assessed to the lands in the watershed in the same ratios as contained within the engineer's report.

Municipal Infrastructure: Once constructed, a Municipal Drain becomes part of that municipality's infrastructure. The Town, through our drainage superintendent, is responsible for repairing and maintaining the municipal drain.

The new Municipal Drain Maintenance and Billing policy aims to ensure that drain maintenance and billing occurs in a consistent, fair and timely manner; this policy includes the provision that the Town must hold an annual Open House to inform the community about Municipal Drainage matters.

The new Municipal Drain Re-Apportion of Assessment policy helps ensure that the Town follows prescribed mechanisms to re-apportion the assessment of properties within a municipal drain watershed when lots are created or amended.

(To review the new policies, please click here.)

Thanks to those who worked together with the Town to improve our policies and procedures on this very important part of our Town’s infrastructure.

Answering Indoor Pool & Amendment Questions

Since Council recently approved moving forward with the construction of the Pelham Community Centre, some people have continued to ask questions. Here’s two of the most oft asked questions:

Why No Indoor Pool?
You will recall that since 1990 the community has consistently voiced a desire – through seven consultant studies and staff reports – for a new twin pad arena, new indoor pool facilities and other community facilities. But, when Council reviewed those reports in late-2012, we confirmed that “no significant or meaningful financial work was completed.”

So, the Town surveyed you and your neighbours about your needs, tested a business case, and developed an operating pro forma to satisfy those needs.

In 2013, the Town hired LeisurePlan, experts in community recreation planning, to conduct a statistically-significant resident survey about our community's needs and preferences. LeisurePlan used this survey to test the business case for various community facilities.

In January 2014, LeisurePlan reported that the number of potential members to use an indoor pool was only 50% of that required to financially support it. Further, they estimated that to make an indoor pool “financially viable” the Town would have to provide an operating subsidy “in the order of $1,000,000 per year.” Therefore, because of the high capital and operating costs and lack of sustaining demand, Council accepted LeisurePlan’s recommendation that the Town not provide an indoor pool facility.

Why Disallow An Amendment For a Single Pad Arena?
After receiving presentations and correspondence from residents and community representatives during our special Council meeting on April 25, Council deliberated a motion to move ahead with the construction of the Community Centre as designed.

When a Councillor tried to move an amendment to that motion to construct the Centre with only one arena, I had to rule the amendment “out of order.” Why? Because Council already approved designing the facility with two arenas.

You see, on July 6, 2015 Council received a business case report from Leisureplan showing that the sustaining demand exists to operate two arenas. As a result of that report, Council approved a motion that we design the Community Centre with two arenas so that both would operate when the building opens.

To change gears and enact what the April 25 proposed “amendment” tried to accomplish, Council would have had to 1) defeat the motion we were dealing with, 2) rescind the July 6, 2015 motion, 3) and direct that the Centre be re-designed with one arena and so that a second to be added later.

I am pleased that we are constructing a Community Centre based on a solid business case. And, I appreciate the ongoing interest from the community! For more information about the Pelham Community Centre, please go to www.pelham.ca/community-centre.

Next Steps for Pelham Community Centre

Public Meeting at Old Pelham Town Hall

Last Monday, Council held a public meeting at Old Pelham Town Hall about plans for the Pelham Community Centre.

We heard 17 passionate presentations (and received three) from individuals and groups representing thousands of from the community including the Pelham Seniors Advisory Committee, three youth sport associations, the Chamber of Commerce, the Niagara Building & Construction Trades Council, the Architectural Design Advisory Committee, and individual residents. Most presenters spoke about the need for the facility and their excitement on how the new Community Centre will dramatically improve our Town. A few individuals expressed reservations about the financing and questioned some elements of the facility.

In addition to the presentations, Council received 138 community letters and 22 online community engagement comments. The overwhelming majority of these letters (more than 125) and comments supported the Community Centre plan as presented more than a month before. Council also considered reports and recommendations from Staff.

Encouraged by the community support and excitement, Council approved the new Community Centre. (Please see official Town news release here.)

But, this decision doesn’t mean that we simply rest of our laurels. Rather, Council’s role changes from consultation and deliberation to oversight, approvals, and lobbying.

Together with the Treasurer, I asked the Town’s auditor to assist Staff in recommending best practices for overseeing the detailed design and construction of the Centre. Before the end-of-the-month Council will consider project and spending oversight options so that the Town can deliver the project on time and on budget.

We also directed Staff to apply for government grants when they become available. Last week, the Federal Government announced preliminary steps toward working with the Provinces for recreational and cultural project funding. When those grants open up, we will appeal to local MPs and MPPs and encourage you to do the same.

Council also directed Staff to present options for a comprehensive development and land-sale strategy before the end-of-the-month. This will not only include Town-owned lands in East Fonthill area, but lands in other parts of the Town too.

Because some Councillors wanted to better understand Development Charges, Council will also receive a presentation about DCs from the Provincial expert.

Finally, Council approved Memorandums of Understanding to negotiate long-term leases with Pelham Minor Hockey Association, Pelham Panther Basketball, Southern Tier Admirals AAA, Welland Raiders Minor Lacrosse Association, and Niagara Centre Figure Skating Club; Council will consider user-group leases over coming months.

After decades of community consultations, deliberations, analysis and planning, I am thrilled that we are taking action to construct a new Community Centre to serve residents of all ages for many, many years.

Pelham’s 2016 Residential Taxes Increases by 2.4%

Two months ago I wrote about how Council approved our 2016 Operating Budget. Since the Province issued the property tax rate for Educational purposes last week, I can now provide you with an update on the total 2016 residential property tax bill.

You will recall that the amount of property tax you pay to the Town of Pelham, to the Region, and to the Province (for Education) is not solely based on the Market Value Assessment of your property; we multiply your assessment by each of these three tax rates and add them up for your total bill.

The Municipal Property Assessment Corporation (MPAC) – the Provincial body that sets a value your home and property – re-evaluated and assessed all properties in the Province as of January 1, 2012. While this amount will be used as the value of your home in 2016, MPAC phases in any assessment increases evenly over a four-year period. The Town uses that changing assessment value when we calculate your property taxes each year.

When Town Council approved our 2016 Operating Budget in February, we didn’t know neither the Regional nor the Provincial rates.

Now that the Region approved the property tax rates and ratios last month and that the Province set their rate last week, we know that the combined property tax increase for an average residential property (valued at $309,200) in Pelham will be 2.4%.

Please note that this 2.4% is the “pocket-book” increase – the amount it cost an average residential property owner by adjusting for the average MPAC increase.

(I am sure that you would be interested to know that approximately 1.1% of this 2.4% is attributable to the one-time increase for the Pelham Community Centre.)

How do we measure whether that amount is “affordable” or not?

One independent way to judge whether Pelham’s taxes are “affordable” or not, is to compare them with inflation. For example, the Bank of Canada calculates that, over the last 10 years, inflation increased the value of goods and services by 17.7%. Over the same period, Pelham’s combined taxes for the average residential property in Pelham increased by 17.4% -- slightly less than inflation. And, this includes the amount already included in the Town’s 2016 budget to help fund the Pelham Community Centre.

Pelham Council and I continue to direct staff to ensure that we only minimally impact you and other property tax-payers while we increase the level and quality of services to the Town.

Community Centre Plan Approved in Principle

At our regular meeting last week, Council received all the information about the Pelham Community Centre that was presented during our special March 22 meeting. That special meeting last month included presentations from the architect with the design and elevations, the construction manager reviewing the construction costs, and staff with details about financing.

The Architects presented an elegant yet very efficient design that includes adaptable and multi-purpose community spaces, a double-gymnasium (dividable into four sections), a double arena (main arena with 1000 seats; second with less than 100 seats), an indoor walking/running track, a concession area, change rooms and washrooms, and an atrium / lobby area.

Based on an item-by-item-review of the design and informed by their experience on more than 30 community facilities, Ball Construction estimated the construction costs at $32.5 million. The construction managers also pegged total project costs – including design, furniture, fixtures, permits – at $36.2 million.

Staff stated that the Community Centre will cost $46.67 for an average residential property (assessed at $309,200) or 3.44% on the 2016 Pelham portion of the tax bill only. That amount will allow the Town to purchase a 30-year debenture of $9.07 million from Infrastructure Ontario. Since Council already approved project funds in our 2016 Budget, the Town will not require any further property tax increases to build the Centre beyond this year. The Town will fund the remaining costs through development charges, East Fonthill land sales, and fundraising.

Last Monday, Council received all this information and approved the plans “in principle.” We also directed staff to tender for the design / build of the electrical and mechanical components of the facility – subject to final approval by Council – so that we might not hold up the project. Finally, Council also directed staff to organize a public meeting on April 25 so that people wishing to make formal presentations about the plan can do so. Council will consider those presentations and a comprehensive staff report so that we might make a final determination that night.

So that you and your friends and neighbours can become better informed about the project, the Town will be hosting open houses on Saturday, April 16 Fire Station #2 (Fenwick) from 10AM to noon and at Fire Station #1 (Fonthill) from 2PM to 4PM. The Architect, Construction Manager, Town Staff, volunteer Architectural Design Advisory Committee members and Councillors will all be available at the open houses to speak with you.

In the meantime, I would encourage you to check out the Town’s recently revised webpage about the Community Centre at www.pelham.ca/community-centre. The page includes information about the plans, the costs, the financing, and answers to questions that people may have about the project. The page also includes the views of the volunteer members of the Architectural Design Advisory Committee. Please check it out at your convenience so that you may know more about this very important and exciting project for our Town.

Answering Questions About Pelham Community Centre

Last week I wrote about the elegant design and affordable financing plan for the Pelham Community Centre. Since then, some folks asked me to report again about the projected operating costs and basis for a double arena.

Operating Costs:
Last Fall, Staff presented a very detailed pro forma that estimates that the Town can operate the Pelham Community Centre for an operating subsidy of less than $200,000 per year. (Lacking any energy efficiencies or operational synergies, our existing 40-year-old arena requires a $100,000 annual operating subsidy.)

The Architect and Construction Manager included the latest energy efficiency innovations – like an eco-chiller for heat exchange and LED lights – and took care to minimize wasted space while making the Centre’s layout very functional.

The facilities in some other communities include pools or fitness areas which are very expensive to operate and maintain. Further, many other facilities lack a compact design or use older technologies. Others also include debt servicing costs into reported operating budgets, making direct cost comparisons difficult.

Double Arena:
In early-2014, LeisurePlan recommended replacing the existing single arena on Haist Street with a new double arena in the East Fonthill area. Further, they recommended designing for two arenas but with a phased build – building one arena first, and construct the second pad after 2023/24 when sustaining demand developed.

As soon as the consultant released the report, arena users and community members questioned the completeness of the participation numbers used in the report.

Then, in 2015, the Architectural Design Advisory Committee (ADAC) recommended that the Town re-evaluate the business case for building a double arena during the initial build. In addition to concerns about not including all the current demand, ADAC expressed concerns with the overall cost and design implications of phased construction. For example, since they couldn’t easily phase-in electrical and mechanical systems and since the initial build would need “temporary” walls or future connections, the capital cost differential for phasing would be minimal.

In June 2015, LeisurePlan updated their previous projections by considering missing information and additional demand from existing arena ice-users (18-20 hours/week). They concluded that “a second ice pad would be utilized 69%-77% during prime time” and therefore recommended that the Town “should consider the provision of a second ice pad by 2018/19.”

In July 2015, Council agreed with this recommendation and directed that the design include two arenas.

You can review information about this very important and exciting project at Town Hall and Pelham Libraries or at www.pelham.ca/community-centre. And, please plan to attend the Open Houses on Saturday, April 16, to speak with the Architect, Construction Manager, Town Staff, volunteer Architectural Design Advisory Committee members and Councillors.

An Elegant and Affordable Community Centre for Pelham

Last Tuesday, Council received several presentations about the Pelham Community Centre.

The Architects presented an elegant yet very efficient design that includes adaptable and multi-purpose community spaces, a double-gymnasium (dividable into four sections), a double arena (main arena with 1000 seats; second with less than 100 seats), an indoor walking/running track, a concession area, change rooms and washrooms, and an atrium / lobby area. (Please click here to see the Architect's slide presentation.)

Based on an item-by-item-review of the design and informed by their experience on more than 30 community facilities, Ball Construction estimated the construction costs at $32.5 million. The construction managers also pegged total project costs – including design, furniture, fixtures, permits – at $36.2 million. (Please click here to watch a video of Ball Construction's presentation.)

Staff stated that the Community Centre will cost $46.66 for an average residential property (assessed at $309,200) or 3.44% on the 2016 Pelham portion of the tax bill only. That amount will allow the Town to purchase a 30-year debenture of $9.07 million from Infrastructure Ontario. Since Council already approved project funds in our 2016 Budget, the Town will not require any further property tax increases to build the Centre beyond this year.

The Town will fund the remaining costs through development charges, East Fonthill land sales, and fundraising. (Please click here for Staff's slide presentation.)

All new housing units and construction pay Development Charges (DCs) to cover the costs for the facilities and infrastructure required to help serve their new developments. The Town’s DCs can fund $12.1 million for the Centre.

In 2005, the Town purchased the 32-acres at the corner of Rice Road and Hwy 20 for $3.6 million ($112,000 per acre). After re-designating, re-zoning, and fully-servicing those lands, the Town will be able to sell nearly 20 acres for an estimated $12 million ($600,000 per acre). (Including the $1.1 million in interest payments, this sale would represent a return on investment of +150%.)

Based on a number of one-on-one interviews, a professional fundraising feasibility study recommends that the community can raise at least $3 million for the Centre. The Town will acknowledge donor generosity through naming and various other types of donor recognition.

This conservative financial plan does not include revenue from other sources like assessment growth from new housing/developments or from upper levels of government. (Council and I will continue to work with local MPs and MPPs to attract government investments for this project and/or other infrastructure improvements.

You may review the designs and the financing plans for this very important and exciting project at www.pelham.ca/community-centre or at Town Hall or Library branches. And, you may speak to the Architect, Construction Manager, Town Staff, volunteer Architectural Design Advisory Committee members and Councillors at Open Houses on Saturday, April 16:

• Fire Station #2 (766 Welland Rd.) from 10:00 AM to Noon;
• Fire Station #1 (177 Hwy #20) from 2:00 to 4:00 PM

Thanks for your interest in this very important and exciting project for Pelham!

Starting Public Engagement About Pelham Community Centre

Over the last number of years, Pelham Council has diligently scrutinized and prepared for a potential Community Centre. Starting next week, final designs, cost estimates, and financing options will be available to Council and the community.

In late-2012, Council directed staff to provide an executive summary of the seven consultant and staff reports – which date back to 1990 – recommending new or improved recreational and community facilities.

In 2013, we hired LeisurePlan International to conduct a statistically-significant resident survey about our community’s needs and preferences. They also tested the business case for various community facilities.

In 2014, LeisurePlan presented a number of reports demonstrating sustaining-demand for a Community Centre and recommending that the Town construct a facility in the East Fonthill development area. Council also established an Architectural Design Advisory Committee with volunteers representing various recreational user groups, youth, seniors, artists, service clubs and the community-at-large. (You may access these report at www.pelham.ca/community-centre.)

During 2015, the Committee worked with the architect, LeisurePlan, and staff to develop concept drawings and presented a design. Council directed staff to hire a construction manager to review and refine the design and to develop an operating pro forma.

All this work confirms the need and the sustaining-demand for a Community Centre that would include adaptable and multi-purpose community spaces, a double-gymnasium, an indoor walking/running track, and a double-arena. This facility could serve as the hub for residents of all ages to gather and enjoy a wide-variety of recreational, health, and community activities for many years.

On Tuesday, March 22, 2016, Council will receive updated information about the potential Pelham Community Centre, including presentations from the architect with the design and elevations, the construction manager reviewing the construction costs, and staff with details about financing.

Council plans to officially receive this information – thereby making it publically available – as the start of 4-5 weeks of community engagement.

We recognize that not everyone is able to drop everything to attend a Council meeting or an open house. That’s why there will be many ways for people to get information about the project.

For example, so that hundreds of folks can review the March 22 information, the Town will post the video of the presentations on the Town’s website at www.pelham.ca/community-centre on Wednesday, March 23. Further, Cogeco TV will broadcast the presentations on Thursday, March 24 at 1:00 pm.

The weeks of public engagement will also include at least one open house – at the largest venue possible – so folks can speak directly to the architect, the construction manager, Town staff, and Councillors. Please watch traditional and social media for details about this meeting soon.

Finally, we are also planning several other opportunities – presentations to service clubs, athletic groups, and Town committees, and displays at various Town facilities and at the Pelham Home Show – for folks to learn about this exciting project.

“Three-Peat” Freeze & Best in Niagara

I am thrilled that Council is set to approve another freeze on our residential and commercial water and waste water rates. Because of ongoing efficiencies and innovations, the Town will absorb the Region’s 3.2% water rate increase and 1.8% waste water increase.

How are we able to freeze rates for 2016 and how do we compare to others in Niagara?

RF Meters Paying Dividends:
Prior to 2010 the Town measured water usage and calculated waste water charges with old gallon and cubic meter odometer-type wheel meters – many from the 1960s and 1970s. Many of the aged-meters counted slowly or were failing/broken. It took two weeks to collect readings. If a system leaked, it could take months to detect.

In 2010, the Town worked with Neptune Technology to replace and upgrade all 4,200 our meters to electronic, RF (Radio Frequency) meters. In addition to leak, backflow, and tamper detection, it only takes 3-4 hours for staff to collect usage data every two months.

Not only does this cost less and give much more accurate billing, but we also automatically notify residents / businesses by phone if there is a leak or other issue with their water service. And, after replacing all the meters, we reduced our water loss from +20% to less than 10%.

Infrastructure Upgrades:
As you know, we have also upgraded significant Town infrastructure over the last number of years. As we reconstructed or improved roads like Haist Street, Pelham Street, and Canboro Road we also replaced old water and sewer pipes. Over the last nine years, we replaced more than 13 kilometers of cast iron water mains, which helped stop costly leaks and reduces the number of breaks and repairs.

Best in Niagara:
I reviewed the most up-to-date rates and calculated the fixed charges and the rates for both water and waste water for Pelham and for the other local municipalities. At $161 for two months (for the average residential use of 50 cubic metres) Pelham leads the pack with the lowest combined water and waste water charges!

Half of our neighbours – Niagara-on-the-Lake, Niagara Falls, St. Catharines, Thorold, and West Lincoln – are between 19% and 29% more expensive. The others – Fort Erie, Lincoln, Port Colborne, and Welland – are more than 49% more expensive! (Please see the comparative chart at by clicking here for all the details.)

Council and I are pleased that our investments in innovation and infrastructure continue to pay dividends and allow us to “three-peat” the water and sewer rate freeze.