The city's pools and arenas may stay closed until the end of 2021, unless the province moves to Phase 4 of its B.C. Restart Plan, according to a report to city council.
In a report going before council on Monday, city director of community services and public safety Adam Davey recommends keeping the city's pools, arenas and the Prince George Conference and Civic Centre closed for the remainder of 2020.
"The purpose of this report is to seek Council’s approval to continue the closure of a number of City indoor recreational facilities for the remainder of 2020 in order to reduce the City’s budget gap which is due to restrictions imposed by COVID-19," Davey wrote. "From a Citywide financial perspective, reopening facilities will widen the City’s overall budget gap. The 2021 preliminary budget guideline has been prepared on the assumption that facilities remain closed throughout 2021. Should the City reopen any of the facilities that are the subject of this report, the 2021 budget gap will increase."
In another report going before council on Monday night, city manager Kathleen Soltis said the city is currently facing a $3 million budget shortfall for 2020, could be faced with shortfall of more than $6 million in 2021 (see related story here).
The city's facilities didn't fully recoup their operating costs prior to the pandemic, Davey wrote. Reopening them during Phase 3 of the provincial Restart Plan, with a limit of 50 people in place, would substantially reduce the cost-recovery rate.
POOLS
In a report to city council on June 15, city staff said the Prince George Aquatic Centre would tentatively reopen on Sept. 8. About 90 per cent of the use of the Four Seasons Leisure Pool is for classes, which couldn't be offered effectively under provincial health guidelines, and city staff recommended keeping is closed indefinitely.
"If aquatics remains closed, substantial cost savings will be realized. The aquatics budget for 2020 will be favourable by several hundred thousand dollars (initial estimates of$600,000)," Davey wrote. "If the Aquatic Centre were to reopen in September, the aquatics budget is projected to be balanced at year-end or to be in a slightly favourable position. However, the costs associated with remaining open for 2021 would be significant (assuming the Province remains in Phase 3)."
If the Aquatic Centre did reopen, it would be restricted to 40 bathers at a time, in two-hour blocks. The proposed schedule would have five two-hour blocks per day on weekdays and four per day on weekends.
The facility's weight room, sauna, lazy river, wave pool and water play features wouldn't be back in service until Phase 4 of the Restart Plan.
Under normal operations, the city subsidizes the cost of pool operations at about $7 per visit, under public health restrictions that would increase to about $56 per visit, Davey wrote.
"The impact to the community is significant: many residents rely on aquatics, especially in the winter months, for exercise. Prolonged closure would negatively impact swim clubs and the overall quality of life for residents," Davey wrote. "On the other hand, the restrictions imposed by COVID prevent the aquatic facility use that residents expect."
ARENAS
On June 15, the city predicted opening the Kin 2 and 3 arenas on Aug. 4 for summer training camps. Other arenas were were slated to open later this year.
Unless the province enters Phase 4 of its Restart Plan, reopening any of the city's arenas would be a significant added expense, Davey wrote.
Reopening CN Centre would cost the city an estimated $300,000 this year and $720,000 in 2021. The costs of operating the Kin 1, 2 and 3 arenas were approximately the same.
The cost of reopening Rolling Mix Concrete Arena was pegged at $210,000 in 2020 and $500,000 in 2021.
The cost of reopening the Elksentre was estimated at $120,000 this year and $290,000 in 2021.
"Should Council wish to provide limited ice opportunities for arena user groups,consolidation of the groups at the CN Centre and Kin Arenas makes the most sense," Davey wrote. "With one large facility, staffing, cleaning, control and ice plant efficiencies can be realized."
If arenas reopened, the facilities would be limited to 50 people at a time, staff would have to monitor people entering and leaving, there would be no use of the locker rooms or spectator seating allowed, and limited washroom access, he added. There would also need to be 15 to 30 minutes scheduled between each group to allow cleaning, which would cut the available ice time by 25 to 33 per cent.
All of the city's arenas are heavily subsidized by the taxpayers under normal conditions, with user groups covering up to 72 per cent of the cost at CN Centre down to 28 per cent of the cost of running the facility at Rolling Mix Concrete Arena, Davey wrote. Under the limits in place under provincial health restrictions, that cost-recovery would drop even further.
"The total average hourly (unsubsidized) cost of operating the Kin Arenas, the CN Centre, the RMCA, and the Elksentre is approximately $450," Davey wrote.
Most of the city's youth ice users pay $112 per hour, while adult user groups pay $209 per hour. One option available to the city would be to reopen a limited number of arenas and charge user groups the unsubsidized rate of $450 per hour, Davey wrote.
"There are no good options available, when considering the larger budget challenges," Davey wrote. "On the one hand, reopening a limited number of facilities, such as the consolidation of ice user groups at the Kin Arenas, and reopening the Aquatic Centre, may provide limited recreation for a select number of residents. On the other hand, with physical distancing requirements, the level of enjoyment at both arenas and pools will likely be substantially reduced – game play is not allowed during the Provincial Restart Plan – Phase 3."
CIVIC CENTRE
The Prince George Conference and Civic Centre could be ready to reopen on Sept. 1, but the cost of doing so isn't feasible, Davey wrote.
"The cost of reopening the PGCCC for the remainder of 2020 is projected to be approximately $330,000... Under no plausible scenario would revenues offset this cost, due to COVID-related restrictions (maximum of 50 people and additional cleaning," he wrote. "Should the PGCCC reopen for 2021, assuming current restrictions remain, the City’s 2021 budget shortfall is estimated to increase by $800,000."
Taxpayers subsidized roughly a third of the cost of running the facility in 2018 and 2019, he wrote. If the facility reopened this year, taxpayers could end up covering roughly 68 per cent of keeping the doors open.
"The bottom-line: Reopening indoor facilities will widen the current 2020 budget shortfall. On an individual facility basis, the shortfall may not be large, considering the wider context," Davey wrote. "However, reopening facilities will result in an increase to the estimated current 2021 budget gap of $6.4 (million) as the current 2021 budget guideline figure assumes that indoor facilities remain closed."
