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City Council Agenda

July 13, 2015 / File No.:210-38

CITY COUNCIL AGENDA REPORT

Subject: CAPITAL PARTNERSHIP PROGRAM - ADVISORY COMMITTEE RECOMMENDATION RE: PRELIMINARY BUSINESS CASE SUBMISSION

Recommendation(s) That the preliminary business case submitted for the project titled ”Dynamyx Gymnastics Club Building 2017” not advance to the detailed business plan stage.

Purpose of Report This report is before Council with a recommendation from the Capital Partnership Program Advisory Committee regarding the outcome of the review of the Preliminary Business Case submitted within the first intake period, ending on March 31, 2015. Council Direction City of St. Albert City Council Policy C-FS-18, Capital Partnership Program Principles, (provided as Attachment 1) was approved by Council on May 21, 2013. City of St. Albert Bylaw 15/2013, the Capital Partnership Program Advisory Committee Bylaw, (provided as Attachment 2) was approved by Council on May 22, 2013, and became effective January 1, 2015. Background and Discussion Introduction to the Program and the Process The Capital Partnership Program is a shared funding program designed to support the community’s population growth by acting as a catalyst in the development of significant community facilities that will both contribute to an improved quality of life for current and future residents and achieve the community’s growth potential. The evaluation process for this program includes a two stage review, the first stage requires a preliminary business case be submitted, and if upon review the Capital Partnership Program Advisory Committee (CCPAC) determines that the project aligns with the program requirements then they are recommended to be invited to

City Council Agenda

July 13, 2015 / File No.:210-38

submit a detailed business case for review. At all times the final approval authority for proceeding through the Program rests with City Council. Since approval of the Capital Partnership Program (CPP) in mid 2013, Administration has designed and delivered a number of forums to educate eligible organizations about the program’s purpose and requirements, to better understand the projects that were being considered and also to create networking opportunities amongst the organizations. On December 1, 2014 Council approved the CCPAC membership through the civic agencies appointment. Then, on January 1, 2015, when the Bylaw established to grant authority to the Capital Partnership Program Advisory Committee (CCPAC) became effective, the Program became active with the first preliminary business case intake date of March 31, 2015 established. The Committee underwent an orientation and then established and approved the Capital Partnership Program Business Case Review Process (Attachment 3) which contained the following requirements:

• A two stage scoring process (preliminary and detailed business case); • Positive compliance with the mandatory requirements (as contained by the

Policy C-FS-18) for each stage of the business case; • At least 50% points are achieved by all three scored categories and overall

at least 75% is achieved at each stage; o Reasonableness of preliminary financial analysis, o Alignment to the CPP’s primary objectives, and o Evidence of support (i.e. market demand and anticipated utilization).

March 31, 2015 Capital Partnership Program Intake

One compliant submission was received within the March 31, 2015 intake period. The following is a brief overview of the project and the rationale for the recommendations presented in this report.

Project Name: Dynamyx Gymnastics Club Building 2017 Dynamyx Gymnastics Club of St. Albert has submitted a preliminary business case with the intent to construct a new multi-purpose gymnastics centric facility by January 2017. A new gymnastics centric multi-purpose facility of approximately 30,000 - 35,000 square feet is being looked at to meet the clubs current needs as well as those of planned and unplanned expansion opportunities. The planned expansion will allow greater recreational opportunities for members of St. Albert and surrounding communities.

City Council Agenda

July 13, 2015 / File No.:210-38

Scored Category Scoring and Comments Mandatory and Compliant Requirements

Complete and Compliant

Reasonableness of preliminary financial analysis

Score: 32.57/50 65% Comments:

• Provided current budget status, and projected five years of operation after opening of new facility

• Provided a preliminary capital budget cost, including funding sources

Evidence of Alignment to the CPP’s primary objectives


• Based upon the scoring criteria the project met three of the CP’s primary objectives

• CCPAC members noted that the new building is planned to be a solid service to the community, however they also felt that the total percentage of St. Albert residents that would utilize the facility on a regular basis was not significantly in alignment with what the CPP’s primary objectives intended.

Evidence of market support


• Provided some evidence of market demand including capacities of prime and non prime time activities.

• CCPAC members noted that the planned services provided to the community will primarily be more of what is already provided

Total Scored Results Score – 64.16/100 64% Rationale for Recommendation: This project met all of the mandatory requirements, and also was compliant in requirements and so the CCPAC scored the project, based upon the submission. The Dynamex team also presented their project to the CCPAC and responded to clarifying questions. The overall assessment was that this project appeared to provide a service to the community; however the Committee also felt that the total percentage of St. Albert residents that would utilize the facility on a regular basis was not significantly in alignment with what the CPP’s primary objectives intended. This impacted the scores received in both evident of alignment to the CPP’s primary objectives and also the evident of market support. The final score from the CCPAC for this project is 64.16/100 (64%), and so according to the Capital Partnership Program Business Case Review Process CCPAC does not recommend that this project proceed to the next stage, preparation of the detailed business plan. Although the CCPAC has not recommended that this project proceed, the Committee acknowledges and thanks this organization for the significant time and effort that went into the preparation of their submission.

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July 13, 2015 / File No.:210-38

Stakeholder Communications or Engagement • The organization that has submitted have been advised of the CCPAC

recommendations and advised of the date that the recommendation will be considered by Council.

Implications of Recommendation(s) • Financial:

• None, if the CCPAC’s recommendation is supported by Council. • However, if Council wishes to see the project proceed, then Financial

Services will prepare a series of funding solutions for Council’s consideration in the event the project passes through the second stage of the process.

• Legal / Risk:

• None, if the CCPAC’s recommendation is supported by Council. • However, if Council wishes to see the project proceed, then Legal Services

will prepare draft agreements in the event the project passes through the second stage of the process.

• Program or Service:

• None, if the CCPAC’s recommendation is supported by Council. • However, if Council wishes to see the project proceed, then stage 2 of the

CCP review process includes engagement with City departments to determine if there are program or service impacts.

• Organizational:

• None, if the CCPAC’s recommendation is supported by Council. • However, if Council wishes to see the project proceed then stage 2 of the

CCP will evaluate the impact on all City departments, if there are other organizational impacts.

Alternatives and Implications Considered If Council does not wish to support the recommendation, the following alternatives could be considered:

1. Direct Administration to reassess the Capital Partnership Program Business Case Review Process.

2. Direct Administration to work with Dynamex, to determine if their project can be modified and then re-submitted for evaluation by the CCPAC. Note that this is a viable option since the submission was received it is considered “in process”.

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July 13, 2015 / File No.:210-38

Strategic Connections a) Council’s Strategic Outcomes and Priorities (See Policy C-CG-02)

• CULTIVATE ECONOMIC PROSPERITY: A diversified, robust and resilient economic foundation to support growth and community service delivery.

• CULTIVATE A HISTORIC, CREATIVE, AND ACTIVE COMMUNITY: A vibrant and involved community with a variety of culture, recreation and heritage opportunities.

• CULTIVATE SUSTAINABLE INFRASTRUCTURE AND SERVICES: A growing community that has balanced development and management of civic facilities, transportation networks and related services.

• CULTIVATE A SAFE, HEALTHY AND INCLUSIVE COMMUNITY: A community that provides opportunities for everyone to realize their potential in a thinking, caring and connected way.

b) Long Term Plans (e.g. MDP, Social Master Plan, Cultural Master Plan, etc.)

• Recreation Master Plan

c) Corporate Objectives (See Corporate Business Plan) • Exercise strong fiscal management • Ensure our customers are very satisfied

d) Council Policies

• City of St. Albert City Council Policy C-FS-18, Capital Partnership Program Principles

e) Other Plans or Initiatives (Business Plans, Implementation Strategies, etc.) • Recreation Action Plan

Attachment(s)

1. City Council Policy C-FS-18, Capital Partnership Program Principles 2. Bylaw 15/2013, Capital Partnership Program Advisory Committee Bylaw 3. Capital Partnership Program Business Case Review Process 4. Capital Partnership Program Business Case Review Scoring Chartpl 5. Confidential - Dynamyx Gymnastics Club Building 2017, Preliminary

Business Case Submission Originating Department(s): Planning & Engineering Author(s): General Manager Approval:

Monique St. Louis, Build St. Albert Gilles Prefontaine, Chief Community Development Officer

City Manager Signature:

Date:

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July 13, 2015 / File No.:210-38

City of St. Albert CITY COUNCIL POLICY C-FS-18

Page 1 of 7

Purpose

To provide a source of funds to catalyze the development of significant facilities that support community growth and enhancement.

Policy

The City of St. Albert may provide grants through a ‘Capital Partnership Program’ to support the development of significant community facilities. Grants shall be based on a one-third matching formula and be provided to eligible Applicants based on the standards defined within this policy.

The Capital Partnership Program’s primary objectives are to support the development of significant community facilities that:

• promote community growth opportunities and increase the community’s attractiveness toresidents and prospective investors;

• leverage strategic partnerships and funding opportunities within the community, with othergovernments, and/or with the private sector;

• enhance the community’s reputation on a regional, provincial, and/or national scale;• demonstrate creativity, innovation, and long-term sustainability; and• foster a legacy and result in long-term quality of life benefits for St. Albert residents.

Definitions

“Applicant” means a registered not-for-profit society, charitable organization, civic department, or academic institution.

“Capital Partnership Program Advisory Committee” means the committee established by Council to accept, review, and assess applications received under the Capital Partnership Program, and to make recommendations to Council.

“City” means the corporation of the City of St. Albert, Alberta.

“City Manager” means the Chief Administrative Officer of the City of St. Albert, Alberta, as defined by the Alberta Municipal Government Act.

C-FS-18

City of St. Albert CITY COUNCIL POLICY Capital Partnership Program Principles

AUTHORITY City Council

APPROVED Res. No. mm ddC148-2013 05 21

REVISED Res. No. mm dd C157-2015 03 23

ATTACHMENT 1


Page 2 of 7

“Council” means the duly elected Mayor and Councillors of the City of St. Albert, Alberta, as defined by the Alberta Municipal Government Act. “Facility” means a building or above-ground outdoor structure that is designed and constructed for a specific purpose, not including facilities required to support linear underground infrastructure. “Project” means a capital expenditure directly related to the new construction, replacement, or significant (greater than 50%) expansion or re-development of a facility. “Recipient” means an Applicant who has been selected to receive a grant under the Capital Partnership Program. Responsibilities 1. Council shall provide final approval to grants under the Capital Partnership Program and

shall name a Capital Partnership Program Advisory Committee to administer the application and review process.

2. The Capital Partnership Program Advisory Committee shall accept, review, and assess applications according to this policy and make approval recommendations to Council where appropriate.

3. The City Manager, or his/her designate, shall provide support to the Capital Partnership

Program Advisory Committee and ensure grant guidelines, application forms, and other administrative requirements are met as necessary.

4. Applicants shall submit complete and accurate Project information for consideration and

shall comply with all requirements of this policy and its procedures.

Standards 1. Eligible Projects: Eligible Projects shall include those intended for:

a. Recreation – facilities that increase recreational capacity or activity (i.e. stadiums, rinks, swimming pools, courts, new or expanded multi-purpose recreation centres, etc.);

b. Major Attractions – facilities that support the attraction of significant numbers of residents and visitors to the community, and the City’s ability to host large scale events (i.e. theme parks, convention or conference centres, major event venues, etc.);


Page 3 of 7

c. Culture - facilities that increase cultural capacity or activity, particularly for the performing arts, visual arts, literary arts, or historical purposes (i.e. museums, galleries, archives, performing arts centres, interpretive facilities, etc.);

d. Enhanced Regional or Provincial Capacity – facilities or infrastructure intended to directly support the City’s competitiveness on a regional or provincial scale (i.e. transportation facilities and networks, transit centres, bridge construction, health services, etc.);

e. Community Gathering – facilities that promote community gathering, inclusiveness, and shared experiences (i.e. community halls or centres, youth or senior facilities, etc.); and

f. SMART Capacity – facilities that improve the City’s strategic ability to position itself as a SMART community (i.e. centres of excellence, academic institutions, research centres, etc.).

2. Ineligible Projects: Ineligible Projects shall include those that:

a. do not relate to a Facility, as defined by this policy;

b. have a useful life of less than fifteen years;

c. are completed or currently under construction;

d. are intended for exclusive or private use (i.e. membership-based clubs, or facilities intended for members of a particular ethnicity, religious affiliation, or other trait);

e. are inaccessible to members of the public and to persons with special needs;

f. pertain to the development or acquisition of market-priced or affordable housing;

g. involve the maintenance, minor renovation, or minor enhancement of existing facilities (i.e. facility enhancements not leading to a change in use, renovations that result in a less than 50% increase in size, etc.);

h. are located on lands the Applicant does not, or will not, directly own or control, or that the Applicant will be unable to obtain written approval for ongoing accessibility to the general public; and

i. are located outside of the City of St. Albert’s corporate boundaries, unless the lands are owned and controlled by the City of St. Albert.


Page 4 of 7

If not referenced as either an ineligible or eligible Project, the Capital Partnership Program Advisory Committee may recommend the project type be considered by Council at its discretion.

3. Applicant Eligibility:

a. Applicants shall be a not-for-profit society, charitable organization, or academic institution registered federally or provincially for a period of at least five consecutive years. The City Manager may also submit applications on behalf of the City, pursuant to the same qualification criteria.

b. Applicants in debt to the City or party to a legal claim against the City shall be ineligible for consideration pending:

i. A signed payment plan and compliance with same; and/or ii. Settlement of the claim

c. All Applicants must demonstrate sufficient organizational capacity to fulfill the

requirements of the proposed Project.

d. Applicants shall not have previously received funding under this program for a period of two fiscal years.

4. Cost Eligibility:

a. Eligible costs include: i. Land acquisition costs; ii. Design fees or technical planning; iii. Site grading, preparation, and utility connections; iv. Municipal fees and required permits; v. Environmental assessments; and vi. Capital construction costs

b. Ineligible costs include:

i. Feasibility studies; ii. Previously incurred charges or prior losses; iii. Ongoing or future facility operating or capital costs; iv. Time and labor provided towards preparation of the grant funding application,

committee planning meetings, fundraising, and similar activities; v. Field trips/tours; and vi. Advertising or promotional costs

5. Application and Review Process:

a. The Capital Partnership Program Advisory Committee, supported by the City Manager, is delegated the authority to administer the application and review process,


Page 5 of 7

including schedules, assessment criteria, forms, appeals, and other aspects as identified.

6. Approval Process and Withdrawal:

a. Following receipt of recommended Project(s) from the Capital Partnership Program

Advisory Committee, Council may, at its discretion, approve grants to Applicants within or outside of the City’s regular budget process.

b. A Project which is supported for funding but which cannot be funded due to program budget capacity may be brought forward for future funding consideration.

c. If an approved Project is cancelled by a Recipient prior to City funds being forwarded, City funding approval shall be withdrawn.

d. If written proof of receipt of matching grants and/or other funding from financial institutions, other governments, foundations, fundraising efforts, donations, private parties, and other sources has not been provided within 12 months of Project approval, City funding approval shall be withdrawn unless specific Council authorization is provided.

e. If written proof of an approved building permit has not been provided within 18 months of Project approval, City funding approval shall be withdrawn and the City shall be reimbursed the sum of its total investment to date, plus interest, unless specific Council authorization is provided.

f. If construction has not commenced within 30 months of approval, or not completed within 48 months of approval, City funding approval shall be withdrawn and the City shall be reimbursed the sum of its total investment to date, plus interest, unless specific Council authorization is provided.

7. Matching Funds Requirement:

a. Applicants may apply for up to 1/3 (33%) funding of their total eligible Project costs.

b. The City’s matching contribution shall be subject to a minimum amount of $500,000,

and a maximum amount of $5,000,000 per approved Project.

c. Applicants shall be responsible for funding the remaining 2/3 (66%) of eligible Project costs, and shall identify those sources in their proposed business case.

i. Funding provided through the City of St. Albert’s operating or capital budget shall not be available for matching purposes.

ii. The City shall not serve as a guarantor to the Applicant to secure loans or future funding commitments.


Page 6 of 7

d. An Applicant’s contributions may be in the form of any combination of money, volunteer labour or donated equipment, services and materials. Volunteer labour must be directly related to the project for which the funding is being requested. The valuation of the volunteerism and donations shall be based on:

i. Volunteer unskilled labour services at $15.00/hour. ii. Volunteer skilled labour services at $30.00/hour. iii. Donated materials and professional services at verified fair market value. iv. Donated heavy equipment, including operator costs, as per the Latest Edition of

the Alberta Road Builder and Heavy Construction Rates.

8. Agreement / Legal Requirements:

a. Successful Applicants shall be required to enter into a “Terms and Conditions of Grant Agreement” with the City prior to receiving any portion of a grant. The City Manager is delegated the authority to approve additional terms of the agreement.

b. Applicants shall acknowledge receipt of the City grant in project promotion and advertising, and shall provide a commemorative plaque to be displayed at the facility, acknowledging the support. Applicants shall also cooperate and coordinate with the City on communications regarding municipal support, public events, and joint media releases.

c. All Projects are ineligible to receive capital funding from any other source offered by the City.

d. Applicants shall comply with all requirements for privacy and the protection of personal information.

e. Applicants shall indemnify the City against all claims and losses.

f. Applicants shall agree to expend funds as specified in the approved application.

g. The City shall not serve as a guarantor of the facility development project, nor shall there be any implied or expressed direct or indirect liability.

h. In the event of Applicant bankruptcy, insolvency or dissolution, the City shall not be required to complete payment on the Project. If a facility is sold for profit or otherwise disposed of prior to the expiration of the lien, the City shall be reimbursed the sum of its total investment, plus interest.

i. The City Manager shall apply and maintain a lien on the properties that are constructed under this fund for the amount of the City’s grant contribution.

j. Applicants may be required to provide collateral or other securities, at the discretion of the City Manager.

9. Project Reporting:


Page 7 of 7

a. Recipients shall submit quarterly Interim Project Reports during the course of the

construction of the project to the City Manager, which will include a detailed project update and a current project financial statement. Confirmation of the execution of a construction contract shall also be provided.

b. Recipients shall provide a Final Project Report within three months of Project completion. The Final Project Report shall include a signed financial statement (including receipts) and detailed project summary, verifying that funds were used for the purpose awarded and that the Project achieved the outcomes it was intended to. Insufficient or incomplete reporting shall be sufficient grounds for the City to withhold final payment.

c. Grants shall be paid in installments following the receipt of complete quarterly Interim Project Reports and invoices, with a 10% holdback. The holdback shall be paid following the receipt of a satisfactory Final Project Report and financial statement.

d. Recipients shall be required to provide annual financial and statistical reports, for a period of five years following the completion of the Project, detailing the facility’s actual performance in relation to its business case.

e. The City Manager shall report to Council on the status of ongoing Projects on a quarterly basis, and completed Projects on an annual basis for a period of five years.

10. Application of Property Taxation

a. The City Manager shall apply all revenue collected from property taxation in relation to

completed Projects under this program to first offset any internal borrowing required to fund the program.

11. Effective Term:

a. The Capital Partnership Program shall become effective on January 1, 2015, and no new applications shall be accepted after June 30, 2015.1

Cross References: Policy C-CG-08, Council Members’ Code of Conduct; Resolution C1086-79, Code of Ethics for Citizen Board Members

CITY OF ST. ALBERT

BYLAW 15/2013

A Bylaw to Establish and Define the Functions of the Capital Partnership Program Advisory Committee.

WHEREAS

i. Section 145 of the Municipal Government Act, R.S.A. 2000, c. M-26, provides that Council may pass bylaws to establish and define the functions of council committees; and

ii. Council wishes to establish a council committee to accept, review and assess applications received further to the Capital Partnership Program, and to make recommendations to Council respecting the approval of those applications;

NOW THEREFORE the Council of the City of St. Albert, duly assembled, hereby ENACTS AS FOLLOWS:

1. This Bylaw may be referred to as the "Capital Partnership Program Advisory Committee Bylaw".

"Bylaw" means this Capital Partnership Program Advisory Committee Bylaw;

"Capital Partnership Program" means a municipal initiative that provides a source of funds to catalyze the development of significant facilities and projects that support community growth and enhancement by

• promoting community growth opportunities and increasing the community's attractiveness to residents and prospective investors;

• leveraging strategic partnerships and funding opportunities within the community, with other governments, and/or with the private sector;

• enhancing the community's reputation on a regional, provincial, and/or national scale;

• demonstrating creativity, innovation, and long-term sustainability; and • fostering a legacy resulting in long-term quality of life benefits for

residents;

"Chair" means the chairperson of the Committee;

Title

Definitions 2. In this Bylaw:

BYLAW 15/2013 (Page 1)

ATTACHMENT 2

iv. "City" means the municipal corporation of the City of St. Albert or, where the context so requires, the area contained within the boundaries of the City;

v. "City Manager" means the City's chief administrative officer;

vi. "Committee" means the Capital Partnership Program Advisory Committee established by this Bylaw;

vii "Council" means the municipal council of the City of St. Albert;

viii. "Councillor" means an active member of Council;

ix. "Interested Party" means an individual or group specifically invited by the Committee to attend a specified Committee meeting to address an item on the Committee's agenda;

x. "Mayor" means the City's chief elected official;

xi. "Member" means a member of the Committee;

xii "Procedure Bylaw" means Bylaw 35/2009 and includes any amendments or successor bylaws thereto;

xiii. "Program" means the Capital Partnership Program;

xiv. "Section" and "Subsection" mean, respectively, a section or subsection of this Bylaw; and

xv. "Term" means a Member's term of service on the Committee.

Committee Establishment

3. There is hereby established a Council committee that shall be referred to as the Capital Partnership Program Advisory Committee.

Committee Roles and Responsibilities

4. (1) The Committee shall accept, review, and assess applications received under the Program, and make recommendations to Council for approval with respect to those applications.

(2) In proceeding under Subsection (1), and subject to Section 18, the Committee shall conduct its activities in accordance with the Committee Terms of Reference and any other Council- or City Manager-approved


policies, procedures and guidelines specifically applicable to the Committee.

Appointments and Membership

5. Members shall be appointed annually by Council resolution.

6. The Committee shall consist of seven (7) Members, all of whom shall be citizens at large. For clarity, the Mayor shall not be a Member.

Terms

7. Except where a Member is appointed to fill a membership vacancy, each Member's appointment shall take effect on January 1st of the effective year of appointment.

8. (1) During the Committee's first year of operation,

a. three (3) Members shall be appointed each for a 1-year Term; and

b. the remainder of the Members shall be appointed each for a 2-year Term.

(2) During the Committee's second and each subsequent year of operation, all newly appointed Members shall be appointed for a 2-year Term.

(3) Any Member shall be eligible for re-appointment at the end of the Member's term of service on the Committee.

Vacancies

9. (1) Notwithstanding the foregoing, if, for any reason, a Member vacates his or her membership on the Committee during that Member's Term, Council shall appoint a replacement Member.

(2) The replacement Member referred to in Subsection (1) shall serve the remainder of the vacating Member's Term.

Non-Voting Participants and Attendees

10. The City Manager or designate

i. may attend any regular Committee meeting, including any in camera session;

ii. may act as a discussion facilitator and information resource for Members;

S f̂S'ert BYLAW 15/2013 (Page 3)

iii. may act as Committee Coordinator and meeting Secretary; and

iv. may not make motions or vote on any issue before the Committee.

11. A Member may invite an Interested Party to speak to an issue before the Committee but the Interested Party may not make motions or vote on any issue before the Committee.

12. Any Councillor may attend any regular Committee meeting, including any in camera session, but may not debate, make motions or vote on any issue before the Committee.

Quorum, Meetings and Rules of Procedure

13. A quorum at any Committee meeting shall be four (4) Members.

14. (1) The Committee shall designate a Member to serve

i. as Chair; and

ii. as Vice Chair,

each for a Term of one (1) year commencing the first annual meeting of the Committee.

(2) The Vice Chair shall act in the Chair's absence.

15. (1) The Chair may call for a meeting of the Committee at any time.

(2) If the Chair is unwilling or unable to call a meeting of the Committee, Council, by resolution, may call a meeting of the Committee.

16. The Chair shall be the spokesperson for the Committee.

17. The precedence of the rules governing the procedures of the Committee is as follows, from high to low:

i. the Municipal Government Act, associated Regulations or other applicable legislation;

ii. this Bylaw;

iii. the Procedures Bylaw,

iv. Committee Terms of Reference;


Cirv oi'

v. Council- or City Manager-approved policies, procedures and guidelines specifically applicable to the Committee;

vi. Robert's Rules of Order, Newly Revised.

Effective Date

18. This Bylaw shall take effect on January 1, 2015.

READ a first time this 21st day of May 2013.

READ a second time this 21st day of May 2013.

READ a third time this 21st day of May 2013.

SIGNED AND PASSED this day of / ( f k j z L 2013.

MAYOR

CHIEF LEGISLATIVE OFFICER


APPROVED: FRIDAY, MAY 1, 2015

BUSINESS CASE REVIEW PROCESS

STAGE 1 - PRELIMINARY BUSINESS CASE REVIEW

Stage 1, Step 1: Initial Completeness Assessment. Project must have all of the following to advance to Stage 2 Review of the preliminary business case and project must meet policy eligibility requirements

Note: • To be screened for completeness by the Committee Coordinator prior to

presentation to the Capital Partnership Program Advisory Committee

• If any information is absent or unclear the CCPAC has the option torecommend to not advance the project, or to request a presentation ormore information

1. Applicant Information:Registered name of Applicant and mailing address. Act under which Applicant is incorporated, incorporation number, and year in existence (including copy of current Certificate of Incorporation). Primary purpose / mandate of Applicant’s organization. Number of active members and number of volunteers. Primary and alternate contacts (name, email, phone, fax, address). List of Board & Executive Members. Comments/Observations:

City of St. Albert | Business Case Review Process | 1

ATTACHMENT 3

2. Project Information: Name of Project. Category of Project (see below for Eligible Projects).

a. Recreation – facilities that increase recreational capacity or activity (i.e. stadiums, rinks, swimming pools, courts, new or expanded multi-purpose recreation centres, etc.);

b. Major Attractions – facilities that support the attraction of significant numbers of residents and visitors to the community, and the City’s ability to host large scale events (i.e. theme parks, convention or conference centres, major event venues, etc.);

c. Culture - facilities that increase cultural capacity or activity, particularly for the performing arts, visual arts, literary arts, or historical purposes (i.e. museums, galleries, archives, performing arts centres, interpretive facilities, etc.);

d. Enhanced Regional or Provincial Capacity – facilities or infrastructure intended to directly support the City’s competitiveness on a regional or provincial scale (i.e. transportation facilities and networks, transit centres, bridge construction, health services, etc.);

e. Community Gathering – facilities that promote community gathering, inclusiveness, and shared experiences (i.e. community halls or centres, youth or senior facilities, etc.); and

f. SMART Capacity – facilities that improve the City’s strategic ability to position itself as a SMART community (i.e. centres of excellence, academic institutions, research centres, etc.).

Brief description of Project concept. Expected useful facility life. Expected Project milestones (i.e. construction, completion, occupancy) Comments/Observations:


3. Preliminary Rationale: Brief description of alignment to the Capital Partnership Program’s objectives. • promote community growth opportunities and increase the community’s attractiveness to

residents and prospective investors; • leverage strategic partnerships and funding opportunities within the community, with

other governments, and/or with the private sector; • enhance the community’s reputation on a regional, provincial, and/or national scale; • demonstrate creativity, innovation, and long-term sustainability; and • foster a legacy and result in long-term quality of life benefits for St. Albert residents.

Preliminary estimate of market demand. Preliminary type and scope of facility program or service delivery. Comments/Observations:


4. Preliminary Project Financials: Estimate of eligible costs. Estimate of required funding sources and amounts, including support from the Capital Partnership Program, sponsorship / partnership arrangements, donations, volunteer contributions, grants, borrowing, etc.

Comments/Observations:

5. Authorization:

Signature / authorization by the Applicant or chief official of the Applicant’s organization.



Stage 1, Step 2: If the project is approved to proceed into this step proceed to Step 2 screening, which includes the following:

Reasonableness of preliminary financial analysis including: capital and operating projections, diversification of funding sources, evidence of volunteerism and fundraising (max: 50 points). 40 – 50 points: a solid overview of a financial analysis is provided, including:

• capital cost projections, • diversification and realistic funding sources, • evidence of awareness and abilities in fundraising, • and a sustainable operating budget.

20 – 39 points: a brief overview of a financial analysis is provided, including:

• a brief explanation of capital cost projections, • some information regarding diversification and realistic funding

sources, • a little evidence of and awareness and abilities in fundraising, • and some evidence of a sustainable operating budget.

0 – 19 points: very little in terms of a financial analysis is provided, may include:

• a brief explanation of capital cost projections, • may have a bit of information regarding diversification and realistic

funding sources, • a little evidence of and awareness and abilities in fundraising, • and an operating budget that is to vague or high level to understand if

it is sustainable.



Evidence of alignment to the CPP’s primary objectives: (max: 25 points, 5 points for each objective that clearly aligns with the CPP program). • promote community growth opportunities and increase the community’s attractiveness to

residents and prospective investors; • leverage strategic partnerships and funding opportunities within the community, with

other governments, and/or with the private sector; • enhance the community’s reputation on a regional, provincial, and/or national scale; • demonstrate creativity, innovation, and long-term sustainability; and • foster a legacy and result in long-term quality of life benefits for St. Albert residents.

Comments/Observations: Evidence of support including market demand and anticipated utilization (max: 25 points) 20 - 25 points: overwhelming evidence of demand and need in the community

10 – 19 points: some evidence of demand and need in the community 0 – 9 points: no significant evidence of demand or need in the community


If each section received at least 50% of the total points allocated, and the overall project score is 75 points or greater, then the CCPAC may recommend to Council to approve the project to be advanced to the Detailed Business Case Stage.


STAGE 2 – DETAILED BUSINESS CASE REVIEW

Stage 2, Step 1: Initial Completeness Assessment. Project must have all of the following information, in a complete form, to be accepted to advance to Stage 2 Review of the preliminary business case and the project must have major elements of projects in place, including land identified with a viable procurement strategy identified. Note:

• To be screened for completeness by the Committee Coordinator prior to presentation to the Capital Partnership Program Advisory Committee

• If any information is absent or unclear the CCPAC has the option to

recommend to not advance the project, or to request a presentation or more information

1] Applicant Information: Previously successful major facility projects. Financial statements for last 5 years, and future projections, including resolution / motion for Project.

Previous or current collaborative efforts. Applicant’s organizational capacity to undertake Project. Documented support of the project and the financial plan and strategy of the Board. If a financial contribution from the membership is required, they demonstrated support of at least 75% of the membership is also required.



2] Project Information: Name of Project. Description of Project. Street address or legal description of Project / proposed facility. Copy of land title, and other land occupancy information including compatibility of the land with the intended land use. Please note that if the land is not owned by the CPP applicant, is does need to be available for purchase.

Initial facility designs and concepts. Comments/Observations:


3] Detailed Project Rationale: Market demand / facility need, including expected users. Type and scope of facility program or service delivery. Financial and non-financial benefit to the Applicant. Objective measures of benefit to resident and investment attraction, the local economy, and to the community’s broader reputation.

Strategic partnerships and collaborations with other organizations, governments and/or the private sector.

Evidence of creativity, innovation, and sustainability. Community benefits (including benefit to current and future residents). Public accessibility / access provisions. Support for / incorporation of St. Albert’s “botanical arts city” brand. Member, community, and other letters of support. Comments/Observations:


4] Risks and Constraints: Evidence that the Project is/are aligned to the City’s Municipal Development Plan. Detailed risks and constraints, including expert opinion where necessary, and plan to mitigate risks.



5] Detailed Project Financials: Eligible Project initial capital and lifecycle costs (including supporting documentation).

Confirmed funding sources and amounts, including support from the Capital Partnership Program, sponsorship / partnership arrangements, donations, volunteer contributions, grants, borrowing, etc.

Applicant’s financial and non-financial contributions. Expected return on investment. Expected cost to users, if applicable. Ongoing operating and capital (maintenance / renewal) costs. Plan for the Applicant to fund ongoing operating and capital costs, and manage these requirements.

Potential for Project adjustment, in the event 100% funding is not received. Comments/Observations:


6] Project Management: Project management approach, including: detailed project schedule and milestones; project manager(s) experience, capacity, contact information; etc


7] Authorization: Signature / authorization by the Applicant or chief official of the Applicant’s organization.


Stage 2, Step 2: If the project is approved to proceed it enters Step 2 review, which includes the following:

Reasonableness of financial analysis, including: capital and operating projections; diversification of funding sources; evidence of volunteerism and fundraising; and overall suitability for public investment (max: 30 points) 20 – 30 points: A strong financial analysis is evident including: capital and sustainable operating projections based on experience and demand; diversification of funding sources is clearly considered and researched, with alternate plans identified if funding does not become available; evidence of volunteerism and fundraising abilities is clear and through; and overall suitability for public investment is demonstrated through precedents, past practice, etc. 10 – 19 points: A solid financial analysis is evident including: capital and sustainable operating projections based on experience and demand; diversification of funding sources is considered and researched, with an alternate plan identified if funding does not become available; evidence of volunteerism and fundraising abilities is clear; and overall suitability for public investment is demonstrated through precedents, past practice, etc. 0 - 10 points: A weaker financial analysis is included with high level OOM capital and operating projections that may be sustainable based on industry experience; little diversification of funding sources is considered and researched, with no or a weak alternate plan identified if funding does not become available; little evidence of volunteerism and fundraising abilities is clear; and overall suitability for public investment is not demonstrated through precedents, past practice, etc.



Evidence of support, including: confirmed market demand, community and stakeholder support, and expected users (max: 25 points) 20 – 25 points: strong demand and need is demonstrated through solid analytics, including demonstrated growth in the service category, strong demonstration of service user groups support, need, and commitment, and linked to population growth forecast and projected increased demand 10 – 19 points: reasonable demand and need is demonstrated through analytics, including growth or plateauing in the service category, a bit of demonstration of service user groups support, need, and commitment, and mention of population growth forecast and projected increased demand 0 – 9 points: very little demand and need is demonstrated through analytics, including growth or plateauing in the service category, little evident of demonstration of service user groups support, need, and commitment, and no or minor mention of population growth forecast and projected increased demand



Evidence of feasibility, including: economic, social, and resident benefits; ability to catalyze resident and investment attraction, and effect on the community’s broader reputation (max: 20 points) 15 – 20 points: strong feasibility case is presented including significant economic, social, and resident benefits; project presents an ability to catalyze resident and investment attraction, and effect on the community’s broader reputation is positive and significant

5 to 14 points: a feasibility case is presented which includes some economic, social, and resident benefits; project presents an ability to catalyze resident and investment attraction, and effect on the community’s broader reputation is positive 0 – 4 points: a feasibility case is presented which includes a minor benefit to the economic, social, and resident benefits; project presents a minor or no ability to catalyze resident and investment attraction, and effect on the community’s broader reputation is not evident



Evidence of Applicant capacity, including: financial health/sustainability, successful prior projects, prior collaborations, project management approach, and plan to finance future costs (max: 10 points) 8 - 10 points: applicant capacity is clearly evident, with examples of previous sustainable projects, prior collaborations, strong project management approach, and a sustainable plan for on going operations (15 - 20 points)

5- 7 points: some applicant capacity is indicated, with at least one example of a previous project, some prior collaborations, a project management approach, and a sustainable plan for on going operations

0 – 4 points: very little applicant capacity is indicated, with no previous projects, a plan for collaboration but no past experience, a high level project management approach, and no viable plan for a sustainable plan for on going operations



Risks to the Applicant and/or the City, and efforts to minimize those risks (max: 10 points) 8 - 10 points: Risks to the Applicant and/or the City are clearly understood, identified, and a strong plan to minimize those risks are in place 5- 7 points: Some risks are identified, and a plans to minimize those risks are in place, not tall risks are considered 0 – 4 points: Very few risks are identified, and plans to minimize those risks are weak, not all risks are considered



Project approach, including: creativity, innovation, collaboration / partnerships, and sustainable planning (max: 5 points) 4- 5 points: Project approach, includes strong elements of creativity, innovation, collaboration / partnerships, and sustainable planning

0 – 3 points: Project approach, includes some to no elements of creativity, innovation, collaboration / partnerships, and sustainable planning


If each section received at least 50% of the total points allocated, and the overall project score is 75 points or greater, then the CCPAC may recommend to Council to approve the project.


Capital Partnership Program - Business Case Review Scoring Chart

Dynamex Gymnastics

Stage 1, Step 1Initial Completeness Review Complete

Incomplete Compliant

If marked "incomplete" or "not compliant", do not proceed to Step 2 Not Compliant

Stage 1, Step 2Reasonableness of preliminary financial analysis 34 /50 pointsEvidence of alignment to the CPP's objectives 15 /25 pointsEvidence of support (market demand, utilization, etc.) 15.2 /25 points

TOTAL 64.2 /100 points

if all sections have received at minimum 50% of the total available points,and the total score is greater than 75, then the CCPAC may recommendthe project to proceed to Stage 2.

Stage 2, Step 1Initial Completeness Review Complete

IncompleteNot Compliant

If marked "incomplete" or "not compliant", do not proceed to Step 2

Stage 2, Step 2Reasonableness of detailed financial analysis /30 pointsEvidence of support (market demand, utilization, etc.) /25 pointsEvidence of feasibility (economic, resident benefits, etc) /20 pointsEvidence of Applicant capacity (financial sustainability, etc) /10 pointsRisk Identification and mitigation /10 pointsProject Approach /5 points

TOTAL 0 /100 points

if all sections have received at minimum 50% of the total available points,and the total score is greater than 75, then the CCPAC may recommendthe project be approved.

ATTACHMENT 4

city council agenda reportpbtech.org/clients/stalbert/attch/stalbertcc... · grant authority to the...

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