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CITY OF KINGSTON

INFORMATION REPORT TO COUNCIL

COUNCIL MEETING2 2 Ntltl 17 ,09

No.: 09-310

TO:

FROM:

RESOURCE STAFF:

DATE OF MEETING:

SUBJECT:

Mayor and Council

Stephen Dickey, Deputy Treasurer

Angela Brown, Financial Planning Coordinator

2009-11-17

Third Quarter Operating Budget Report for 2009

EXECUTIVE SUMMARY

This information report is to provide a financial status update of the general operating fund as at September 30, 2009, the end of

the third fiscal quarter.

RECOMMENDATION:

This report is for information purposes only.

AUTHORIZING SIGNATURES:

ON ER

CONSULTATION WITH THE FOLLOWING COMMISSIONERS:

(lllB indicates requird)

ByDTRECT0R0FHNANCTALSERVTCES 0RIGINAL SIGNED By (0MMl55

Gerard Hunt, Chief Administrative Officer

Commissioner Beach, Sustainability & Growth

Com m issioner Thu rston, Commu nity D ev elopment Se ruices

Commissioner Leger, Corporate Seruices

Jim Keech, President, Utilities Kingston

not

94

COUNCIL MEETING2 2I'It)\/ I7 '09

REPORT TO COUNCIL. Report No.: 09-310

November 17,2009-Page2-

OPTIONS/DISCUSSION:

The financial information provided in this report is from the financial accounting records of the corporation as at September 30,

2009. The report reflects the approved operating budget for the year 2009 together with.2009 actual revenue and expenditure

informa¡on. A variance columÀ is provided for reference purposes and generally reflects the amount of revenues to be

generated or expenditures to be spent over the balance of the year, With respect to the overall corporate results, three

õchedules are attached, reported by group and summarized by department. Police, Library, Agency Transfers and Municipal

Utilities are summarized as'well. SónéOutb A reflects the net operating information (revenues less expenditures). Schedules B

and C reflect gross revenues and gross expenditures respectively'

This report also includes the 2009 third quarter results for the Grand Theatre and the INVISTA Centre as provided in summary

form by the departments in Schedules D and E. The K-Rock Centre's third quarter results will be presented under a separate

report.

From the information provided, we advise that most variances are at a normal level, while, with the exception of comments

below, many of those ieflecting otherwise are generally seasonal in nature and appear to be reasonable at this time' There are

certain opeiating departmentsihat continue to deal wiih effects from the cunent uncertain economic environment as discussed

below.

lnterest income on corporate investments and bank balances are tracking below budget due to the drop in interest rates, with a

current projection of an $gOOf shortfall in investment income for 2009. The market prices for recycling products continue to be

netow antióipated levels. We are cunently projecting a shortfall in revenue net of savings and decreased processing costs of

$gg0K which will be offset by the transfer ôt$eSSf surplus from the 2008 year-end report. This means an expected net deficit

of $125K for 2009 for the solid waste department'

A shor.tfall of approximately $400K is projected in facility lease revenues due to leases which have not materialized for Midland

Avenue and 1 i eueen St.'The licensing'department is expecting a $100K deficit related to raffle & bingo licenses that have not

transpired as budgeted due to the ecónomic downturn, Recreation and Leisure Services are projecting a net shortfall of

appróximately$SOóXdueprimarilytolowerthanexpectedicerentalrevenuesforthellNV|STACentre. Trafficandstreetlights

,i¡i¡ties erpeñses are higher than expected at an expected deficit of $100K. ln addition, the Grand Theatre is forecasting a net

deficit from budget of approximately $1 19K.

On the positive side, fuel prices have continued to track below budget, with savings for the third quarter of approximately $250K,

with an anticipated total â009 savings of approximately $750K by year end, ln addition, due to timing of new hires throughout

city departments, there is a total oné+ime savings of approximately $355K that has been generated up to the end of the third

qrärtri, Other significant positive variances inc-lude higher government funding to Rideaucrest in the amount of $190K and

supplementary taies plus interest on taxes net of wiite-offs expected to be ahead of budget by approximately $500K'

Odiartments âre con¡nually working with finance staff to review variances on a regular basis with a goal to have a balanced

nuåget by year end, At ltr¡s ¡me through a collective effort, including potential surplus from external agencies, we are

committed to the goal of balancing the 2009 budget.

EXISTING POLICY/BY LAW:

By-law 2OO9-23"4 By-Law to Adopt the 2009 Operating Budget"

NOTICE PROVISIONS:

Not Applicable

ACCESS¡BI LITY CONSIDERATIONS:

Not Applicable

95

COUNCIL MEETINGZ 2-Nf]V 17 '09

Report No.: 09-310REP'RTTO couNclL November 1z,2oo9

-Page3-

FI NANCIAL CONSIDERATIONS:

There are no financial considerations at this time. Comments are contained in the options/discussions section of this report and

in the appendices that are attached.

CONTACTS:

Stephen Dickey, Deputy Treasurer Ext. 2370

Angela Brown, Financial Planning Coordinator Ext.2366

OTHER CITY OF KINGSTON STAFF CONSULTED:

Gerard Hunt, Chief Administrative Officer Ext. 2205

Lanie Hurdle, Director of Recreation & Leisure Services Ext. 1231

Brian McOurdy, Director of Cultural Services Ext' 1354

EXHIBITS ATTACHED:

Schedule A - Net Operating RePort

Schedule B - Gross Revenues

Schedule C - Gross Expenditures

Schedule D - Grand Theatre Quarterly Report

Schedule E - INVISTA Centre Quarterly Report

96

couN(:tl írí[riïil''¡c2 2i\t0v t 7'09

CITY OF KINGSTONNet Operating Report - Operating Fund ' Municipal

2009-09-30

Council Report 09-310Schedule A

421,650

275,502

156,433

r,286,959

4,1 68,7032,06r,880

328,507

190,728

8,193,21 1

603,000

373,000

228,664

1,378,939

6,851,7492p25,002

496,056

330,1 64

12,210,574

( 181 ,350)

(97,498)

(72,231)

(91,980)

(2,683,045)(863,122',)

( 1 67,548)

(1 39,436)

------:-(4,017,363)

(r,257,999)(3,638,080)

7jYo

7 4o/o

680/o

930/o

61%70%664

58o/o

680/o

76o/o

630/o

------7M

67%

2,723,16011,248,1674,364,395

18,335,722

g,ser,1sg14,886,2476,280,537

25.147.943

343,1 69364,303

15,468,31 315,083,8853,840,917---E¡õõFer

488,588165,595

20,308,06020,422,3275,584,683

46,969,254

(1,916,1421 690/o

(6,812,221\ 73o/o

(145,419) 70o/o

198,708 220%(4,839,748) 760/o

(5,338,443) 74%t1.743.766) 69%

(11,868,667) 75o/o

1,052,062 1,492,025816,312 1 ,332,007

1,737 ,694 2,595,565

Q1,463\ 249,1583,584,605 5,668,754

---fmõ02-ô- - ìõõ¡763?6-

13,230,925 15,924,643

(169,789,532) (169,843,299)(83,469,371) (53,769,81 1 )

40,196,693 53,769,811

-(43.272.678\ 0

(1 ,213,909)(2,349,998)

(99)

(2,693,719) 83Yo

53,767 1000/o

(29.699,561) 155o/o

(13,573,118) 75o/o

-@Ñ----:-

(1,213,909)(2,349,998)

(ee)

(439,963)(515,694)(857,871)(270,621)

(2,084,149)

-lm50Fõet

7 1o/o

61o/o

670/o

-9%

rjc-Aci,aË---l fj^.^-añual-l lTiance -l o#P",o*I Year to Date I I Budget I I Yo I

Municipal Oporat¡ons

Mayor & Council

Chiof Admin¡strat¡ve Off icer's Off ¡ce

Corporate ServicesCommissioner's OfficeCorporate Asset Operations

Fac¡lities ManagementFleet ManagemenlTransit

lnformation Systems & TechnologY

Real Estate & Construction ServicesTransportation

Airport and TransportationParking

Total Corporate Sorv¡ces

Publ¡c Works ServicesCommissioner's OfficeEngineeringPublic WorksSolid WasleTotal Publ¡c Works Services

Commun¡ty Development Servic€sCommissioner's OfficeBuilding & LicensingCommunity & Family ServicesFire & RescueLong Term Care-R¡deaucrestTotal Community Development Services

Sustalnabil¡ty & GrowthCommissioner's OfficeCultural ServicesPlanning & DevelopmentRecreation & Leisure ServicesSlrategy, Env¡ronmenl & CommunicationsTotal Susta¡nability & Growth

Corporate Adm¡nistrationCity Clerk's Otf¡ceFinancial ServicesHuman Resources & Organizational DevelopmenlLegal ServicesTotal Corporate Administration

Total All Departments

Fiscal Services

Taxat¡on RevenuoTotal

Boards & Agency Transfers

Total Municlpal Operations

Municioal Utiliti€sWaterWastewaterGasAppliance Rental BuslnessTotal Mun¡cipal Util¡ties

Net Operat¡ng

252,549 400,276 (147 '728) 630/o

1,486,392 1]79312 (292þ20) 84o/o

797,391 1,188,484 (391,093) 67Yo

3,714,365 4,415,220 (700,856) B4o/o

e27,263 1,3e3,028 (199,19E¡ __ry--- 7177.960 - s,na,'zt (1,998,361) 780/o

97

couNclt' t\4FIir!\¡G2 2 ilnv 1t '09

CITY OF KINGSTON

Gross Revenue - Operating Fund'Municipal2009-09-30

Council Reporl 09-310Schedule B

Munlc¡oal ODeratlons

Mayor & Council

Chiof Administrativs Off¡ce/s Offlce

Corporatg Serv¡cesCommissione/s OfficeCorporate Asset Operations

Fac¡lit¡es ManagemenlFleet ManagementTrans¡t

lnformation Systems & TechnologyReal Estate & Construction ServicesTranspolalion

Airport and TransportationParking

Total Corporato Sorv¡ces

Publlc Works SorvicôsCommissioner's OffìceEngineeringPublic WorksSolid WasteTotal Public Works Serv¡ces

Communlty Dovolopmont Serv¡cesCommissione/s OffìceBuilding & L¡censing

Community & Family ServicesF¡re & RescueLong Term Care-RideaucrestTotal Community Development Serv¡c€s

Susta¡nab¡llty & GrowthCommissioner's OflìceCultural ServicesPlanning & DevelopmenlRecreation & Leisure ServicesStralegy, Environment & CommunicationsTotal sustainab¡l¡ty & Growth

Corporate Adm¡nistratlonCity Clerk's OffìceFinancial ServicesHuman Resources & Organizational DevelopmenlLegal Serv¡cesTotal Corporate Administratlon

Total All Dopartments

Fiscal Services

Taxation RevenueTotal


Total Mun¡cipal Oporations

Municioal UlilitiosWatorWastewatôrGasAppliance Rental Bus¡nossTotal Municipal Utilities

Gross Revenue

(20,000)

(1 6,500)

(3,s04,21 1)

(7,328,1751(887,674)(1 1 0,000)

(1 ,010,51 r )(5,196,851 )

(18,053,922)

(281,824)(599,300)

(3,825,481)(4,706,605)

278,003642,934

4.222.669

151

1 38,1 631,992,50ô2,130,820

100%770k4ÙYo

-------55%

72o/o

88%7 7o/o

1,249,41511,804,228

80,9562,1 08,373

15.242.973

(1,700,;71 703,e88(673,520) 254,955

(7,066,110) 2.077.987(218,276\ 86,584

(9,658,283) 3,123,513

64,519(1,503)

229,472336,r07628,595

@(4,248,326)

67o/o

760/0

44o/o

78o/o-' 76%

(1 71 ,346,546)(250,803,655)

(27,612,461)

@.(1 2,027,650)(16,994,508)(23,776,291].

(1,253,798){É4,052,2461

(14,608,186)(21 ,647,1 s6)(48,78r,763) 25,00s,472

3180/o

(172,557,252\(273,1 1 8,968)

(37,912,068)

(311.031.036) 32,614,920 90%

22,31 5,313

10,299,607

(1.500.000) 246,202 84Yo(86.537,105) 32,484,859 62Yo

ri-- Æim-rs---ì riJrnü-al-l rv€r""col #ffif "rt"ñt"-] f Brds.r-l f-J-¡---_l l-- % -a

(63s)

(15,000)

(1 2,375)

(2,393,407)

(5,429,797)(676,938)

(32,311)

(732,508)(4,553,9r 7)

(r 3,831 ,253)

(281,673)(461 ,1 37)

(r,832,975)(2,s75,785)

(2,4s2,;8ol (3,732,;e5)(37,362,407) (49,166,636)

(63,812) (144,768)(7 ,444,767) (9,553,140)

(47,353,766) (62,596,739)

(996,389)(418,56s)

(4,988,123)(r 31 ,692)

(6,534,770)

(143,373) (207,892l.(573,403) (s71,900)(680,841) (910,314)

(1 ,s53,016) (1 ,889,1 23)(2,950,633) (3,579,229)

@- --(rs-'6-iæsi(6,195,262) (1,946,937)

(63e)

5,000

4,125 750/o

1 ,1 10,804 68%

1,898,378 74%210,736 760/o

77,689 29o/o

590/o

62%7 1Io600k680/o

69o/o

100o/o

75o/o

82o/o--- 82%

740

2,580,536 82o/o

4,652,648 79o/o

84o/o

98

COU NCIÍ.. n4Ëf:Til'¡G2 2- Nn\l 1

CITY OF KINGSTON

Gross Expenditure - Operat¡ng Fund'Municipal2009-09-30

7 '09Counc¡l Report 09-31 0

Schedule C

Municiþal Oporat¡ons

Mayor & Council

Ch¡€f Adm¡nistrative Officer's Off¡ce

Corporate SorvicesCommiss¡oner's Offìce

Corporale Asset OperationsFacilities ManagementFleet ManagementTransit

lnformation Systems & TechnologY

Real Estale & Construct¡on ServicesTransporlalion

Akporl and Transportat¡on

Parkingfotal Corporate Sorv¡cas

Public Works ServicesComm¡ssione/s OflìceEngineeringPubl¡c WorksSol¡d WasteTotal Publ¡c Works Services

Commun¡ty DeveloPment SewicesCommissioner's OffìceBuilding & Licensing

Commun¡ty & Family ServicesF¡re & RescueLong Term Care-R¡deaucrestTotal Community Development Sewices

Susta¡nab¡lity & GrowthComm¡ssione/s Offìce

Cultural ServicesPlanning & DevelopmentRecreation & Leisure ServicesStrategy, Environment & CommunicationsTotal Susta¡nabllity & Growth

Corporate AdministrationC¡ty Clerk's OffìcoF¡nancial ServicesHuman Resources & Organizat¡onal DevelopmenlLegal Serv¡cesTotal Corporato Admin¡stration

Total All Departments

Fisoal Services

Taxation RovenueTotal


Total Municipal OPôrations

Munlcipal Ut¡l¡ti€sWaterWastowaterGasApplianco Rental BusinessTotal Municipal Utilities

Gross Expond¡ture

14,179,9243,812,675

606.056

4,262p8315,485,54710,106,01829.854.548

488,5883,897,790

400,2763,479,6891,862,004

11,481,331

I ,699,9171.903,9073,505,879

21,647,15648,781,763

1,500,000

(145,419)(1,050,707)

(147,728\(996,908)(646,047)

(2,778,8421

(23,872,725l.

:t?5'8giFõt

(3,794,44s)(7,002,647)

(504,482) 70o/o

(514,191)(1,087,343)

73Yo

690/o

(76,356) 69%

(1,202,7_84]' -

75o/o

(4,581,424',) 68%(1,073,858) 72lo(245,237') 600/o

(1,258,149) 70%(3,776,244\ 760/0

(3.908,648) 61ro(8,943,041) 70Yo

69o/o

880/o------73%

69,474,696 (16,643,976) 76Yo

20,567,095 (5,419,399)

7 1o/o

65o/o

760/o

1,058,e55 1,611,304 (59?,9191 99Il

1,531,5536,535,239

1 46.351 .083 1 98,763,623

19,426,187 17,871,580

67,809,154 91 ,681,879

--ffiÆs -ìi;õbi;õ'3t

10,813,741 14,608,186

2,138,281 (606,728) 72/:

-g2qz,sgg

12,712,744\ 71o/o

ß2.412.540\ 74Yo

1,554,606 1090/o

2,713,9s3 (1,156,939) 57Yo

-zt

g,3+9,r 5o (52,014,873) 760/0

50.335.738 86,537,105

(25,005,571) 49o/o

(398,705) 73Yo

(36.201,367) 58%

|-jrì- Acruáts-l l- Annuat---l f-tãr¡ancilI YeartoDate | | Budget I

422,289 603,000 (180,711) ToYo

290,502 393,000 (102,498) 74o/o

168,808 245,164

3,680,366 4,883,151

e,5es,;002,738,817

360,818

923,236 1,340,675 (417,4391

4,553,e17 5,1e6,851 =(94?,9?9)zz,ozq,qaq 30,264,496 (8,240,032)

3,004,;33l1 ,709,3036,197,370

20,911 ,507

343,1 692,847,083

52,830,72015,147,697

252,5492,482,7811 ,215,9568,702,488

1,195,4351 ,389,7162,418,535

1 4,644,50923,776,192

1 ,101 ,295

11,285,684 1s,137,823 f9,9??,1q91 4"1:--øAs4ø

-109,565,992

(27 ,111 '640) 75ok

70o/o

73o/o

76o/o

7 4o/o

68%

99

COUNCIL lt'lEf:TlNG2 2- f'ln\/

Quarterly Report

September 30, 2009

17'09

Grand Theatre Report #09-310

Schedule D

Revenues

CapitalReserveGrand Theatre Presents

Working Fund Reserve

Facility Rentals

Credit Card Revenues

ConcessionsBox Office Fees

Equipment Reimbursements

Fundraising

Technical Recoveries

Total Revenues

ExpensesGrand Theatre Presents

Salaries, Wages & Benefits

Utilities

Repairs & Maintenance

Other Materials, Supplies &

ServicesMarketing

Total Expenses

Net Revenue (Expenditure)from Operations

Capital Reserve Expense

Net Revenue (Expenditure)

Kev lndicators

Community Groups

Commercial

Grand Theatre Presents

Rehearsal / set up

Dark Days

Non Performance

Total

Grand Use Total

$ 115,032 $ 119,ô54 $ 123,490

324,468 575,715 432,192

187,500 250,000 250,000

83,970 138,050 171,300

36,475 66,335 81,011

8,587 14,000 15,000

86,208 159,337 226,677

18,279 30,000 30,000

42,839 93,750 140,000

120.747 204,838 174.011

$L02t;10ã $1,05L62!l s1,ttt0g1

$ 585,735 $ 420,041

911,833 869,885

107,100 107,100

131,000 1 10,800

310,456 218,272

Year to DateActual

Projected toYear End

AnnualBudaet

ProjectedVariance

$( 3,836)

143,523

0

33,250)

14,676)

1,000)

67,340)

0

46,250)

30.827

s 7.998

$(165,694)( 41,948)

0

( 20,500)

92,274

4,530

$fl31,33CI

$fis}340)

$( 3,836)

sfl19.5041

Projected toBudqet

97Io133o/o

100%

81Io82To

93%

70o/o

100%

67Io118o/o

1007o

139%

105%

100%

119o/o

58o/o

97o/o

107o/o

151o/o

97To

133o/o

$ 312,484

641,427

72,467

53,272

150,008

1 1 6.830 1 55,1 70 1 59,700

$ü!t0,40s $201-0.800 $Lg85,490

$[93s0 $ß05;!5n $J2ll,81zl

$( 115,032) $( 119,654) $( 123,490)

$f43lt15) $4e,811) $t305"302)

Proiected Davs of Use Budqeted Days of Use

Babv Grand

179

0

0

101

60

0

340

547

Variance

(37)

(12)

17

(17)

(5)

(18)

(72ì.

(13,21o/o

Rosen Baby Grand Bosen

65 145 68

18 0 30

4703046 89 51

85582020

186 289 207

475

Page 1 of 2100

COUNCIL MEETING2. 2 Ì'INV

Quarterly Report

September 30, 2009

17 '09

Grand Theatre Report #09-310

Schedule D

Community Groups

Commercial

Grand Theatre Presents

Off Site Events

Baby Grand

Total

YTD Projected Tickets soldTickets Sold to Year End per Budget Variance

23,367 30,954 32,310 ( 1,356)

17,928 (7,681)10,247

18,747 13,370 5,377

3,000 14,000 ( 11,000)

10,828 11,433 ( 605)

13il5 _09,011 ü5¿05)

Discussion

Proiected Revenues

Projected revenues for Grand Theatre Presents exceed budget by $143,523 due to 17 more events than budgeted.

These revenues are offset by expenses for the additional events. Facility rent is projected to be under budget due to

fewer commercial and community rentals. Box Office fees are under budget by $67,340 due to greater than

anticipated counter sales versus on line or by phone, As of July 1, counter sales include a service charge which will

help close the budget gap in Box Office revenues. Fundraising revenues have not yet been transferred from the

Foundation, which will happen in November, Technical recovery is higher than budget due to increased Grand

Theatre Presents events, offset by increase in salaries, wages & benefits.

Net lmpact: Projected to be over revenue budget by $Z,ggA.

Proiected Expenses

Salaries, wages & benefits are proiected to be over budget, in part, to projected variance in payroll benefits costs. ln

addition, WSIB costs incurred after 2009 budget approval contribute to the overspend in this area, along with the

increased level of performance activity for Grand Theatre Presents as described above, Materials, supplies &

services are projected tobeg92,274 under budget due to savings initiatives implemented by Grand Theatre as well

as the Grand Theatre Foundation taking over some development expenses.

Summary

Overall projected Net Expenditure from Operations Variance ($123,340)

Capital Reserve Expense Variance (3.836)

Projected Net Expenditure Variance $1t9.ã04)

Potential opportunities for revenue enhancements or expense reductions:

A new service charge on counter sales was implemented in July 2009, though the impact will not be fully realized

until 2010, We have also adjusted Box Office hours, which is enabling us to reduce part time staffing costs in the

Box Office. The full impact of this change will not be felt until 2010.

8,546

15,001

2,100

6,747

_ã5Jc1

Page 2 of 2 101

COUNCTL MEETINc2 2-f'lfl\/ 1.7 '09

INVISTA CeNtrE

Year to Date Proiected Annual Proiected Proiected

Actual to Budqet Variance to Budqet

Year End

Revenues

Revenue $1.694.207 $2,509.168 $2,997,892 $(488.724) 83.6%

TotalRevenues fiL6942ü û?-1ggJA! 52.992'892 $1498,24ì 83.67o

ExpensesSalaries & Benef¡ts $ 977,517 $1 ,228,410 $1 ,168,404 $( 60'006) 105.1%

other operating costs 659,613 782,657 742,657 ( 40,000) 105,4Io

Contribution to Arena Reserve 907.538 1,210,050 1,210.050 0 100 %

TotalExpenses $2,544,009 S3¿2t112 $3J2t111 Ú00000I

Net Expendlture from Operations $--050,4CI1 $--211Jl49 $-lgt219 $688.230)

Key Indicators (year to date)

1 . Number of hours rented for youth: lce: 6,180 hours

2, Number of hours rented for adults: lce: 1,933'5 hours

3. Number of room rentals: Room Rentals: 2,891.75 hours

4. Number of City operated programs offered City operated programs: Target Groups:

and target groups 159 4

lnformation on non-arena bookings - year to date:

Partner groups booking rooms 157 Bookings

City of Kingston Bookings 143 Bookings (no fees charged)

ExternalGroups Business 321 bookings

Families 10ô bookings

TOTAL (year to date) 727 bookings (meeting rooms)

Quarterly Report

September 30,2009

Report #09-310

Schedule E

Page t of 2 102

INVISTA Centre

COUNCIL MEEïNG2 2-Nl)V J.7 '09

Quarterly Report

September 30, 2009

Report #09-310

Schedule E

Discussion

RevenueSource

Budget2009

Rationale/l nf ormationActualSept 30

CurrentVariance

ProiectedVariance(deficitl/surplus

$ 13,950Room Rental $ 38,770 $ 36,050 g 2,720 There will be a surplus even ifabout 20% of bookings are forCity of Kingston and free of

charge.

Change in concession operatoris impacting year end revenues,

ConcessionLease

Lease ofProperty

AdvertisingRevenue

lce Rentals

$ 32,926

$ 9S,e3l

$ 105,827

$ 110,000

$ 80,000

$ 200,000

($ 77,074l,

$ 15,231

($ 94,173)

($ 1z,tz+¡

$ 15,000

($ 2o,ooo) Projected $1 80,000, New

facilig advertising program will

be implemented in 2010.

Projected $475,000 shortfall byyear end as fewer hours being

booked by partner groups, No

charge to leisure showcaseevent.

New contract with Coca-Cola.

$1,468,158 $2,509,342 ($1 ,041 ,1 83) ($475,000)

Vending

Machines

0ther

$ 16,966 $ 15,000 $ 1,966 $ 7,000

g 25,345 g 47,500 ($ 22,155) ($ 12,500)

ü,ruilzlt $2,992892 f$t214J00 6488JZt)

Potential opportunities for revenue enhancements or expense reductions:

Staff have implemented a lreeze on discretionary spending. Staff have also started to implement an attendancemanagement program which should contribute to a reduction in sick leave and salaries expenditure. Staff are alsolooking into additional advertising revenues in the arena, A reduction in ice time demand from partner groups hasalso been observed in the last quarter. Partner groups are the main consumers of ice time and their seasonalrequirements are not impacted by the price of ice but rather by the number of registrants, Therefore, a reduction inthe cost of ice to these partner groups would only enable the City to rent a limited number of additional hours. Thereis cunently too much supply for existing demand,

TotalRevenues

Page2 of 2103

I-I16@

K[¡¡csnrN-èt-

COUNCIL

CITY OF KINGSTON


urrrlruc2 2NtlV L7 '09

No.: 09-330

TO:

FROM:

RESOURCE STAFF:

DATE OF MEETING:

SUBJECT:

Mayor and Council

Denis Leger, Commissioner of Corporate Services

Sheila Kidd, Director of Corporate Asset Operations

November 17,2009

Asbestos Management Program - Update

EXECUTIVE SUMMARY:

The purpose of this report is to provide information to Council on the progress and status of the Asbestos Management Program

as it relates to those properties that predate 1980.

RECOMMENDATION:

This repoft is for information purposes only.

AUTHORIZING SIGNATURES:

ORIGINAL SIGNED BY (Denis Leger, Commissioner of Corporate Services

ORIGIt\lAL SIGNID BY fiIEF ADl/lIl\lISTRATII/E OFFIIIRGerard Hunt, Chief Administrative Officer


Commissioner Beach, Suslainability & Growth N/R

Commissioner Thurston, Com m u nity Dev elopment Services N/R

Commissioner Leger, Corporate Services N/R

Jim Keech, President, Utílities Kngston N/R

(N/R indicates consultation not required)

104


OPTIONS/DISCUSSION:

Backqround \

The City of Kingston's Asbestos Management Program (AMP) was approved by Council in October 2007. The purpose of theAMP is to ensure that asbestos-containing material in City of Kingston buildings is managed to protect the health of employees,contractors, building occupants, and visitors, and to ensure compliance with the Regulation 278105 Designated Substance -Asbestos on Construction Projects and in Buildings and Repair Operations, made under the Occupational Health and SafetyAct.

The program includes details regarding:

. Legislativerequirements(Regulation2TS-05)

. Roles and responsibilities of internal staff

. An assessment and management strategyo Classification of the worko Emergency procedures. Air quality testingo Training requirements for staffo Constructor and contractor requirementso Waste disposal protocol

. Tools and templates to undertake work

During 2007 and 2008, Facilities staff undertook two designated substance reviews of city-owned and leased facilities. ln total,approximately 85 buildings undenrent a comprehensive designated substance review process.

The Ontario Regulation 278105 classifies asbestos abatement work into three types of operations: Type 1, Type 2 and Type 3,

The classification depends on the type of disturbance, the type of material being disturbed, and the extent of the work. Type 1

operations may be undertaken by City of Kingston employees. All Type 2 and Type 3 work must be performed by qualified

contractors.

As a result of the building reviews, it was determined that 36 buildings had asbestos-containing material. ln accordance with thelegislation, staff documented the type, location, size and priority of the findings and actions required for each building whereasbestos was identified,

A comprehensive logistics plan was completed by internal staff in partnership with Pinchin Environmental, the City'senvironmental consultants in this matter. A Request for Proposal (RFP) was issued in September 2008 for the Type 2 and Type

3 removal of asbestos-containing materials for 24 of the prioritized buildings, JCH Environmental lnc. was awarded thecontract.

Due to cost and time restrictions, it was determined that the work would have to be prioritized and performed in two phases.

The sites were prioritized using criteria such as the condition of the material, the building occupancy and the extent of the work

that needed to be completed. The following chart provides a summary of the asbestos removal work to-date.

COUNCIL

November 17,2009. Page 2.

MEETINGZ 2 Nf]V 1. 7 ,09

Report No. 09-330

105

CCUNCIf. MEETING2 2|\INV ]7 '09

INFORMATION REPORT T0 COUNCIL Report No. 09-330


Work Completed in' , 2008

Type of Work 2009 Work Type of Work

Woodburn CommunityCentre

\ype 2 Removal - floor tile 150 West St. (Red

Cross Buildinq)Type 2 Removal - joint compound

Court House Type 2 Removal- pipe insulation 56 Francis St.(Senior's Centre)

fype 2 Removal - vinyl wall tile

Fire Storage Building(Elsinburqh)

Type 2 Removal - vinyl flooring Woodbine ParkRecreation Centre

Type 1 Removal - floor tile

Portsmouth OlympicHarbour

Type 2 Removal - pipe insulation MemorialCentre Type2 Removal- pipe insulation

and vinyl floor tile

City Hall Type 3 Removal- pipe insulation Pump House Museum Type 2 Removal - pipe insulation

Tourist Office Type 2 Removal - pipe insulation

and vinvl floorinqFire Station # 2 f ype 2 Removal - vinyl flooring

Registry Office Iype2 Removal- pipe insulation

and floor tile

Fire Station # 4 Type 3 Removal - ceiling tile and

vinyl floor tile

Centre 70 Arena Type2 Removal- pipe insulation Fire Station # 5 Type 2 Removal - pipe insulation

and.vinyl floor tile

CataraquiArena Type 2 Removal- joint

compound/drywallWally Elmer Arena Iype 2 Removal - pipe insulation &

drywallcompound

1211 John CounterBlvd.

Íype 2 Removal - pipe insulation J. K. Tett Type 2 Removal- pipe insulation,

vinyl flooring & drywalljointcomoound

701 Division(City Yard)

Type 2 Removal - pipe insulation

and ceilinq tilesOakwood Daycare f ype 2 Removal - vinyl floor tile

251 Ontario St,(Lonestar Restaurant)

Type 2 Removal - pipe insulation

and floor tile

Phase 1 Asbestos Removal - Work Completed in 2008 and Work Currentlv Underway for 2009

JCH Environmental lnc. undertook removalof:

. Friable asbestos-containing materials (ACM) and fiberglass from areas identified as being Priority 1

o Floor, wall ahd ceiling tile containing ACM. Waste disposal to meet environmental and waste management mandate of the City of Kingston and all other legislative

requirementso Waste which, prior to removal, had to be placed into contractor-provided containers and staged properly for transportation

to the appropriate disposal facility

As most of the buildings were occupied at the time, care was needed with regard to communications, site access, physical

removal, waste disposal, clean up and occupant care.

106


COUNCIL


MEETING2.2'\{]! 17 '09

Report No. 09-330

Phase 2 Asbestos Removal

The annual audit allows Facilities Management to continue to assess the cunent asbestos conditions throughout all of the

facilities to determine the next areas of concern. After the completion of our 2009 building audits, the Facilities Management

Division will develop the Phase 2 Asbestos Materials Abatement and Removal Program for 2010.

lnspection. Record Keepinq and Trainino

ln addition to the identification, classification and removal of asbestos-containing materials, the Asbestos Management Program

also requires the City to develop and maintain documentation, conduct regular inspections, and train employees. The key

points of the program are summarized below.

. Prepare and keep on the premise, a record containing the location of all asbestos containing materials, an indication of

whether the material is friable or non{riable and details regarding type of asbestos and how it will be treated.

. lnspect the material mentioned in the record at reasonable intervals to determine its condition.

o Update the record at least once in each twelve-month period or whenever new information becomes available relating to

the record. /! '

o Provide occupiers of City owned facilities with written notice of information in the record that relates to the area occupied.

o Advise employees working within the building of the information contained in the record, if they may do work that involves

materials mentioned in the record or is to be carried out in close proximity to such material.

. Establish and maintain a haining program for those employees that may work in close proximity !o or who may disturb

asbestos containing material.

ln accordance with the Asbestos Management Policy, Facilities staff has prepared records for all buildings where asbestos-

containing material has been identified. A record has been created for each property, regular inspections are conducted, and

the records are updated. To-date, twenty (20) City of Kingston staff have completed the Asbestos Worker Training.


Asbestos Management Program

NOTICE PROVISIONS:

N/A

ACCESSIBILITY CONSIDERATIONST

N/A

FINANCIAL CONSIDERATIONS: ì

As indicated in the Asbestos Management Program and within the 10-year capital plan, there will be ongoing financial

and resource requirements for City buildings that predate 1980. ln 2008, we spent approximately $140,000 on asbestos

abatement. ln 2009, we will spend approximately $110,000 of $340,000 that was approved. The approved capital for 2011 is

$240,000. Based on the results of the 2009 building audits, a work plan will be developed for 2010 and this work will be

t07

coUNclL MEETINGZ 2Ì'10V 1i '09

INFORMATION REPORT TO COUNCIL Report No. 09'330

November 17,2009. Page 5.

awarded through a competitive process (RFP) as per the City's Purchasing Policy, Sufficient funding has been approved in the

2009 and 2010 capital budget to meet the requirements specified in the program.

CONTACTS:

Jamie Brash, Facilities Supervisor 546-4291, Ext. 1291

Brian Smith, Health and Safety Coordinator 546-4291, Ext. 1203


N/A

EXHIBITS ATTACHED:

N/A

r08

COUNCIL MEETING2- 2 NI]V

CITY OF KINGSTON


No.: 09-340

t7'09

I

I

!ñr@

K$¡csrox,--

TO:

FROM:

RESOURCE STAFF:

DATE OF MEETING:

SUBJECT:

Mayor and Council

Denis Leger, Commissioner of Corporate Services


November 17,2009

K-ROCK Centre Year-to-Date Operations Report -

Period Ending September 30,2009

EXECUTIVE SUMMARY:

This information repoil is before Council to allow Arcturus/SMG the opportunity to provide its quarterly review of operations, andthe conesponding financial results, for the nine months ending September 30, 2009 relative to the expected results based ontheir 2009 budget submission.

The Arcturus/SMG repofi shows net income from operations for the nine months ending September 30, 2009 at $446,678versus the nine-month budget figure of $621,235. The difference of $174,557 is attributable to revenues not meetingprojections,

Arcturus/SMG management will be available at the November 17,2009 meeting to answer any questions related to the

operations of the K-ROCK Centre.

RECOMMENDATION:

This report is for information purposes only.

AUTHORIZ¡NG SIGNATURES:

ORIGINAL SIGNED BY COMMISSIONERDenis Leger, Commissioner of Corporate Services

ORIGINAL 516NID BY IllIIF ADt\/lI

Gerard Hunt, Chief Administrative Officer


Commissioner Beach, Susfainability & Growth N/R

Commissioner Thurston, Community Development Services N/R

Commissioner Leger, Corporate Services N/R

Jim Keech, President, Utilities Kingston N/R

(N/R inclicates consultation not rcquircd) 109

COUNC¡L tlf EETit{G2 2-l'i0\/ '17 '09

INFORMATION REPORT TO COUNCIL Report No. 09-340

November 17, 2009Page 2 of 3

OPTIONS/DISCUSSION:

Backsround

Arcturus/SMG (ASMG) provided an operating budget submission which wàs received by Council on December 16, 2008 by way

of Report 09-029. The ASMG 2009 operating budget submission reflected net operating income of $1,114,025 (net of the

annualcapital reserve contribution requirement of $100,000). This submission marginally exceeded the $1,112,608 financialperformance benchmark contained in the operato/s management agreement, the amount that was approved in the City's 2009

operating budget.

Quarterly projections of anticipated revenues and expenses are also provided as part of the annual budget submission. The

events that take place in the entertainment venue are either seasonal or cyclical in nature and hence revenues and expenses

do not accrue evenly on a quarterly basis, Accordingly, it is essential to measure the facility's financial performance on aquarterly basis relative to the quarterly estimates, as well as on a cumulative basis (year-to-date) relative to the year-to-date

estimates.

Pertormance lndícators

Financial performance indicators have been developed for the K-ROCK Centre to assist Council, staff and members of thepublic to evaluate how well the Centre is performing in relation to the annual budget. The overall financial success of the K-

ROCK Centre is, to a great extent, based on the number of events and attendance at events held by both its operator (ASMG)

and its major tenant, the Kingston Frontenacs.

The financial indicators include:

o Net Operating lncome - net operating income (net of the capital reserue contribution)o Event lncome - rent, food & beverage, novelty, facility surcharges and ticket rebates

o Total Other lncome - suite, club seat, ice rentals and sponsorship and advertising revenues. Facility Expenses - facility operating expenses

The results and key performance indicators for the period ending September 30, 2009 are outlined in Exhibit "4" of this report.

Thírd Quarter Year-To-Date 0lTDl Results

The overall event income (rent, food & beverage, novelty, facility surcharges and ticket rebates) portion of revenues for theperiod has met 85% of the quarterly budgeted revenues ($1 ,018,218 of the total $1 ,1 98,799),

. Net Operating lncome was $174,557 less than projected (72o/o of the projected amount)

o Event lncome was $180,581 less than projected (85% of the projected amount)

. Total Other lncome was $36,878 more than projected (106% of the projected amount)

. Facility Expenses were $26,818 more than projected (10210 of the projected amount)

The 3'¿ quarter variance is the result of lower than budgeted event income which is directly related to the number of events and

overall attendance. The facility event income achieved 85% of the year-to-date target, despitê the fact that attendance was only

68% ofthe forecast.

Suite revenue and sponsorship and advertising revenues are higher than expected and help offset the event income shortfall.

As a total, all other revenues and facility expenses appear to be on track as per the budget submission.

110

couNClL ll'4EETf t{GZ 2 !rlr^r1/ 1 7 '09

INFORMATION REPORT TO COUNCIL Report No. 09'340

November 17, 2009Page 3 of 3

Year End Proiection

-

ASMG is projecting a year-end net operating income of $600,000 versus the annual budget estimate of $1.1 million. While the

projected shortfall is disappointing, it is a substantial improvement over the 2008 financial results. Arcturus/SMG staff has

worked very hard to achieve the financial results despite the challenges presented by the economy and the resulting impact on

the frequency and type of touring events that are available. Despite the fact that the K-ROCK Centre will not achieve the

financial benchmark, there is a need to acknowledge the economic spinoff that is generated by the Centre and value the fact

that entertainment options are available for Kingston area residents that would not be possible without the Centre.


N/A

NOTICE PROVISIONS:

N/A

ACCESSIBILITY CONSIDERATIONS:

N/A

FINANCIAL CONSIDERATIONS:

The shortfall will require an allocation from the Municipal Capital Reserve Fund in order to meet the Centre's debt obligations.

This allocation will not impact the City's 2009 statement of operations, nor will it impact the City's 2010 operating budget and the

resulting municipal tax levy.

CONTACTS:

Denis Leger, Commissioner of Corporate Sen¡ices



Steve Dickey, Manager of Accounting Services

613-546-4291, Ext. 1328

6 1 3 -5 46 - 429 1, Ext. 2221

EXHIBITS ATTACHED:

Exhibit "A" - K-ROCK Centre 3'd Quarter Key Performance lndicators

Exhibit "8" - Arcturus/SMG Operations Report YTD as of September 30, 2009 (3ro Quarter)

lll

COUNCIL MEEflNG2 2f\!f)V :I 7 '09

Exhibit "A"Report 09-340

K-Rock Centre2009 Operations

3rd Quarter Key Performance lndicators

EVENT.BASED REVENUES (YTD)

Overall Event

lncomeEvents

K-Rock Facilitv (Overalll

Actual 66 134,889 L,0L8,2L8

Budget 73 198,000 L198,808Var¡ance (7) (631111) 1180,590

Arcturus/SMG

Actual 46 87,877 872,927

Budget 54 145,000 L,004,182

Varláòce (8) (57,123)

Kineston Frontenacs

Actual 20 47,0t2 L45,291

Eudget 19 53,000 t94,626

Varlance 1 (5,9381 (49,335

OTHER REVENUES SHARED

ACCOUNTABTUW (YTDI

SuitesRevenue

Club Seats

Revenue

Sponsorship&

AdvertlsingRevenue

354,852 116,406

328,500 t23,750

26,?52 17,3441

L57,022

Ll7,9OO

39,122

ASM6 ACCOUNTABILITY

rrD)

lce RentalExpenditures

Revenue

53,748 1,3O2,4t6

75,000 1,275,598

12!,2521 26,818

OVERATL KPI

Net Operatinglncome

446,678

621,,235

112

Exhibit B - Report 09-340

COUNCIL MEET!i\G2 2I.,INV 17 '09

K-Rock Centre Year-to-Date Operations Report

For the Period Ending September 30, 2009

Arcturus/SMc Canada

November 2OO9

Tool, August 4 2009

113

couNCtL r,,¡HETtÌ{G2 2N[}\,l L7 '09Page2

Executive Summarv

W¡th 22 events versus a budget figure o1 20, the 3'd quarter activity tracked higher than the

forecasted numbers however two large concerts that were budgeted did not materialize. The

event income shortfall for the quarter clearly indicates that the bottom line success of the K-

ROCK Centre is directly linked to the ability to successfully attract and sell concerts.

For the period ending September

30, 2009, net income was 5446,678

versus a budget figure of 562L,235.

e overall variance of 5L74,557

resulted from lower than budgeted

event revenues and slightly higher

expenses.

Event revenues to-date for the

quarter did not reach the

forecasted figure having achieved

51,018,2L8 versus the 51,198,808

budgeted.

Facility expenses to-date are

tracking approximately 2.L% above

budget, but are expected to come

in on budget by year-end.

Russell Peters - September 23,2OO9

arcturus*SMG CÆ{ADA

h#& r14

couNctl MrETtrvG2 2 Nt"lV 17 '09

Page 3

Finançial Summarv

Net year-to-date income for the period ending September 30, 2009 was 5446,678 versus a

budgeted figure of 562L,235 for a variance of 5L74,557.

K-Rock Centre2009 Operations

Third Quarter - lncome Statement Analysis

End of3rd Q I enO of3rd Q VarianceActual I Budget

Facilitv Revenue

Event Revenues

Food & Beverage

Novelty Revenues

Ticket Surcharge

Ticket Rebates

Subtotal Event lncome

Private Suites

Club Seats

Naming Rights

Sponsorship & Advertising

lce Rentals

Other Revenues

Subtotal Other lncome

Total Revenues

Facilitv Expenses

Salaries, Wages, and Benefits

UtilitiesRepairs & Maintenanbe

Other Materials, Supplies & Services

Management Fee

Subtotal Facility Expenses

Net lncome from Operations

Contribution to Capital Reserves

SMG lncentive Fees

Adjusted Net lncome

362,474L59,449

48,555

2L6,L02

23L,638

334,800297,OL6

65,977

315,500

27,674(737,567l.

(L7,:,4221

(99,398)

185,515 46,t23

1,018,218 1,198,808 (180,590)

354,852

LL6,406108,900

L57,02253,748L4,948

328,500.

123,750

!23,750rr7,90075,000

26,352(7,3441

(14,850)

39,L22(2L,2521

20,625 (5,6771,

805,876 789,525 16,351

L,824,O94 1,999,333 1L64,2391

581,560

313,834

68,145

242,689

96,188

591,813

320,39846,332

22t,436

(10,253)

(6,564)

2L,8L32L,253

s6995,619

L,302,4t6 1,275,598 26,8r852r,678

75,000

7L2,73575,000

16,500

(191,057)

(16,500)

446,678

arctlurus*SMG CÆ{ADA

62t,235 1L74,5571

115

COUNC¡L r.,II:ET;N¡G.? 2NNV 17 '09

Revenues

Event income for the first three quarters of 2009 achieved 85% of the budget. The greatest

revenue variances occurred in performing arts events ($68,346), entertainment events

(SSZ,OSf¡ and Frontenacs games ($49,335). The corresponding attendance variances for the

categories was (9,697), (10,939) and (5,988) respectively for a total of (26,624). Concerts

continue to show a positive variance of 542,654.

The ice rental revenues variance was 521,252 below budget. This was impacted by a busy

September events calendar a well as a pattern of later starts for many ice users. Limited

success in renting non-prime time ice has continued to affect the ice rentals revenue.

Club seats and private suite

revenues reflect a positive

variance of approximately

s19,000.

Revenues from food and

beverage and novelties are

tracking at 58% of budget.

These results are attributed

to lower than projected

overall attendance, currently

tracking at680/o of budget, as

well as continued lower than

forecast per capita spending.

Expenses

Expenses continued to track well; approximately 2o/ohigher than budget.

arcturus*SMG CANADA

Erik Gudbranson, Kingston Frontenacs

116

couNCII* n4[ETl¡{G2 2NnV 17 '09

Page 5

3rd Quarter YTD Event Results Compared to Forecast

BanquetConsumer/Public

Concerts

ConventionsEntertainment Events

Family Shows

MeetingsSporting Events

Trade Shows

Performing Arts

OtherSubtotal

Frontenacs

TOTAT

K-Rock Centre2009 Results of Operatlons

3rd Quarter YTD - Number of3rd QYTD

Actual3rd QYTD

BudgetVariance

t 2 (1)

4 4

16 15 I2 2

3 6 f3ì

3 4 (1)

6 5 7

5 4 t6 (6)

6 8 l2l

46 54 (81

20 19 t66 73 t7l

3rd Quarter YTD Attendance Results as Compared to Forecast

BanquetConsumer/Public

Concerts

ConventionsEntertainment Events

Family Shows

Meetings

Sporting Events

Trade Shows

Performing Arts

OtherSubtotal

Frontenacs

TOTAT

K-Rock Centre2009 Results of Operations

3rd Quarter YTD - Attendance3rd QtrActual

3rd QtrBudset

Variance

300 1,000 (700)

2,408 10,000 (7.s921

57,657 70,500 (r2,8491

r,200 0 r.2004,06t 15,000 (10,939)

4,6L4 8,000 (3,386)

1,800 500 1,300

8,540 8,000 540

15,000 (1s,000)

7,303 17,000 (9,697)

87,877 145,000 ls7,t23147,0t2 53,000 (s,988)

134,889 198,000 (63.1111

arcturlts*


Quarterly Projections - Number of Events

1" QtrMar 31/09

2no QtrJun 30/09

3'o QtrSep 30/09

4th etrDec 31/09

2009

Budget

L 1 2

2 2 2 6

3 6 6 9 24

2 2 2 1 7

2 2 4 8

2 3 2 7

2 2 4

2 2 2 6

2 T 5 8

16 2L !7 18 72

76 3 18 37

32 2l 20 36 109


Quarterly Proiections - Attendance

1" QtrMar 31109

2no QtrJun 30/09

3'" QtrSep 30/09

4"'QtrDec 31/09

2009

Budeet

500 500 1,000

5,000 5,000 s,000 15,000

14,500 27.OOO 29,000 43,500 114,000

s,000 s,000 5.000 3,500 18,500

5,000 3,000 12,000 20,000

200 300 200 700

4.000 4,000 8,000

5,000 s,000 5,000 15,000

7,500 5,500 4,000 17,000

4t,7OO 57,300 46,000 64,200 209,200

48,000 5,000 54,000 L07,000

89,700 57,300 51,000 118,200 3t6,2OO

SMG CA}TADA 117

COUNCIL MEETING2 2hlNV 17 ,09

Page 6

Year-to-Date Event List

3'd QuarterL City of Kingston Staff Appreciation Event 72 Bachman Cumminss

2 Kingston Frontenacs 13 MvFM Meetine

3 Kinsston Frontenacs L4 Our Ladv Peace

4 Russell Peters 15 Cha mber of Com merce/Coseco Meetine

5 Canada DanceSport 16 Kinsston Frontenacs

6 Canada DanceSport t7 Kinsston Frontenacs

7 Canada DanceSport 18 Shrine Circus

8 Canada DanceSport 19 Shrine Circus

9 Canada DanceSport 20 Tool

10 Robert Crav 2L Meeting

T7 ACN Meetins 22 Meetine

2nd Quorter1 Willie Nelson 10 The Traeicallv Hip

2 NeilYoung 11 John Foeertv

3 KD Lane 72 OIAA Trade Show

4 Celtic Thunder 13 OIAA Dinner

5 Green Up 2009 t4 Circus Garden

6 Event Planners Meetine 15 Circus Garden

7 llDivo 16 Monster Madness

8 Diane Krall t7 Road to Kandahar

9 Leonard Cohen 18 Doors Open Kingston

1 Kinsston Frontenacs 74 Kinsston Frontenacs

2 Kineston Frontenacs 15 The Rankin Familv

3 Kineston Frontenacs 16 Kineston Frontenacs

4 Kingston Frontenacs 77 Old Timers Hockev

5 Kinsston Frontenacs 18 Kineston Frontenacs

6 Kineston Frontenacs 19 Kineston Frontenacs

7 Trailer Park Bovs 20 Kinsston Frontenacs

8 Kinsston Frontenacs 27 Brooks & Dunn

9 Kinsston Frontenacs 22 Brvan Adams

10 Cheer Alliance Cheerleadine 23 Kineston Frontenacs

LL Kinsston Frontenacs 24 Canadian Women's Hockey

t2 Kineston Frontenacs 25 Canadian Women's Hockev

13 So You Think You Can Dance 26 Kids for Kids

7't Quorter

arcturus*SMG CA}{ADA ltB

couNc¡L MEETING2 2-runy 1l '09PageT

Event Summary

The 3'd quarter continued to prove the diverse tastes of K-ROCK Centre patrons. Kingston

gained some international recognition by hosting lndie/Metal monsters, Tool, in one of only

two Canadian dates on their 2009 tour along with the Molson Amphitheatre. While not a

complete sell-out, the show repeatedly provoked one of the most commonly occurring phrases

in Kingston since the opening of the K-ROCK Centre, "l never thought I'd see

-

play here

in my home town!" Many of the 4,200 Tool fans repeated that statement all evening long. The

excitement of the crowd was contagious. A senior staff member spoke with a group from

Montreal that inquired how Kingston was able to get a Tool date and not the Bell Centre. This

ultimately was the result of SMG relationships within the industry.

Another very exciting event in the 3rd quarter was the appearance of Canadian comedy sensation,

Russell Peters. Canada has produced a remarkable number of comedians over the years but Mr.

Peters' has set the bar high for comedians

in the future. For the first time, a single

Canadian comedy act has toured arenas

instead of theatres and done ¡t very

successfully.

Bochmøn Cummings proved the Canadian

music scene is as strong as ever. Their

combined hits as part of lhe Guess Who,

along with their stunning list of solo hits,

kept the crowd enterta¡ned and on their

feet for two solid hours. That still was not

enough time to encompass their entire

catalogue of hits.

The Our Lody Peoce concert in September

proved that Queen's students will come out

to the K-ROCK Centre if the act is right. Our

Lody Peoce played to over 3,OOO students as part of the first year students' orientation program.

The crowd included screaming freshmen as well as a large number of upperclassmen.

Last but by no means leasl, Cønado DanceSport returned to the K-ROCK Centre for the third

consecutive year. This time, they hosted an even larger international contingent of

competitors. ln addition, a newset-up of the facility proved to be a hit, bringinga further level

of intimacy to the surroundings.

arcturus*SMG CAI"IADA

Bachman Cummings, August 8,2009

BfißHTUTfrHGTTIffiTUING$

l19

COUNCIL MEETINGZ 2NOV T7 ,09

Page 8

Kingston Frontenacs

Kicking off their third season in the K-ROCK Centre, and Doug Gilmour's second season, the

Kingston Frontenacs look to make a push for the playoffs. Though they played just two games

in September, winning one and losing one, the Frontenacs are definitely an exciting young team

to watch with potential to compete with the best that the OHL has to offer. As a result, we are

hopeful the on-ice performance of the Frontenacs will lead to improved attendance at future

games.

Partnerships and Communitv Ensagement

K-ROCK Centre Advisory Group

The K-ROCK Centre Advisory Group has met for the first time and is currently in the process ofdetermining an appropriate group size as well as finalizing a mandate. The group was

encouraged by progress made by the facility and indicated they are looking forward to working

with senior staff. We look forward to another meeting before the end of the fourth quarter.

Kingston Accommodation Partners

The K-Rock Centre was a feature of KAP marketing throughout the summer.

K-Rock Centre events were featured in the following mediums:

o CTV A Channel - TV - Canada DanceSport Kingstbn Giveaway

o CTV A Channel - TV - Russell Peters Grand Prize Giveaway

o RADIO: Virgin Radio - Limestone Bluesfest - K-Rock centre supported this through buys for

Robert Cray at the K-Rock Centre

o Toronto Life Magazine - Full page ad - July, August

o Country Grapevine - Full page ad - summer issue

. 55 Plus magazine - Full page ad - Toronto and Ottawa editions - September

KAP is also including the K-ROCK Centre in their lure marketing information provided at trade

shows to increase exposure of the Kingston marketplace with both media and event organizers.

arcturus*I# SMG CANADA

120

couNctL MEEnNG2 2_Itl]V l7 09

Marketing, Sales and Public Relations

The strong results of our marketing efforts (on behalf of several different promoters) have

resulted in our services being retained more frequently. Most recently, we have done all of the

media planning, buying and promotions for Lord of the Donce and 6eorge Jones. Both of these

events were extremely successful resulting in very pleased promoters. Having this capacity in-

house will help separate us from like-sized buildings in the future.

Continuing on the success of last year, we once again participated in the 2009 Arts and

Entertainment Week with the Grand Theatre and Downtown Kingston. The campaign included

posters, handbills, radio, TV and a variety of print media (Kingston Life Magazine, community

newspapers and the Kingstôn Whig-Standard).

Sales

We are excited to welcome OLG as the theatre naming sponsor and have been working towards

identifying a club lounge naming sponsor. We have also created some new advertising

opportunities and hope to use creative packaging to move additional vacancies.

To assist increased event sales and venue branding through the student markets, we hit the

student vendor sales for both Queens University and St. Lawrence College. Our booth featured

an "Enter to Win" promotion for our September Russell Peters event. This enabled us to obtain

email addresses from students to add to our venue email list. We were also able to positively

promote the K-ROCK Centre and our website.

Operations

Ushering in ice for the upcoming season makes the 3rd quarter one of the busiest times of the

year in operations. ln addition to ice making and painting, the operations staff also oversaw

some minor modifications to the board system and ice dam, and improved bench access for the

Frontenacs. We also upgraded the drink rail in the community suite to make it more accessible

for physically-challenged guests.

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121

Total Event lncomeOther lncome

Total Revenues

Expenses

Net lncome from OperationsCapital Reserve Expense

Projected Year-End Net lncome (Loss)

Page 10COUNCIL MEETING2 2IIt:lV 17

,09

Year End Proiection

Year-End Projection As at October 29,2009 - Condensed lncome Statement

2009 Year-EndIProiections 2009 Budget Variance

S1,858,062 -s54L,844

SzB,Lt6SL,l.02,7oo

s2,447,094 Sz,960,l62 -s513,668

5L,746,4L6 5t,746,73t -Sgrs

s700,678Si.oo,ooo

s600,678 SL,LL4,o31 -s513,353

Currently, 30 events are on the books versus 36 projected for the fourth quarter. This consists

of L7 Frontenacs games and 13 other events. While this number is relatively close to budget

and will bring the K-ROCK Centre to 96 of a budgeted L09 events for the year, the shortfall in

concerts, three versus nine for the quarter, will impact the bottom line. The projected final

total on the number of concerts of 1.9 versus 24 budgeted, may indeed be indicative of the

current economic times. Two major shows predicted in fourth quarter have not materialized

and other shows, budgeted based on past history and the growth in awareness of the facility,

also failed to occur.

Finally the L9 concerts in 2009, compares quite favourably with the substantially larger John

Labatt Centre in London, which will host 21 concerts this year. The larger capacity allows for

larger shows and a broader range of entertainment options so it is quite remarkable for

Kingston to be within two concerts of that facility. lt is indeed a reason to be proud.

Overall, the projected year-end net income of 5600,000 is a monumental leap forward as

compared to the 2008 financial results.

arcturus*

SL,3L6,ztgS1,130,876

5L,2L4,03Ls100,000

-sst3,gsgSO

SMG CANADA1??

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