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I-IÃtm
I{t{csroN-èZ-
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
Boards & Agency Transfers
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
Boards & Agency Transfers
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
INFORMATION REPORT TO COUNCIL
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
CONSULTATION WITH THE FOLLOWING COMMISSIONERS:
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
INFORMATION REPORT TO COUNCIL
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
November 17,2009-Page3-
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
INFORMATION REPORT TO COUNCIL
COUNCIL
November 17,2009-Page4-
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.
EXISTING POLICY/BY LAW:
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
$240,000. Based on the results of the 2009 building audits, a work plan will be developed for 2010 and this work will be
t07
coUNclL MEETINGZ 2Ì'10V 1i '09
INFORMATION REPORT TO COUNCIL Report No. 09'330
November 17,2009. Page 5.
awarded through a competitive process (RFP) as per the City's Purchasing Policy, Sufficient funding has been approved in the
2009 and 2010 capital budget to meet the requirements specified in the program.
CONTACTS:
Jamie Brash, Facilities Supervisor 546-4291, Ext. 1291
Brian Smith, Health and Safety Coordinator 546-4291, Ext. 1203
OTHER CITY OF KINGSTON STAFF CONSULTED:
N/A
EXHIBITS ATTACHED:
N/A
r08
COUNCIL MEETING2- 2 NI]V
CITY OF KINGSTON
INFORMATION REPORT TO COUNCIL
No.: 09-340
t7'09
I
I
!ñr@
K$¡csrox,--
TO:
FROM:
RESOURCE STAFF:
DATE OF MEETING:
SUBJECT:
Mayor and Council
Denis Leger, Commissioner of Corporate Services
Sheila Kidd, Director of Corporate Asset Operations
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
CONSULTATION WITH THE FOLLOWING COMMISSIONERS:
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.
EXISTING POLICY/BY LAW:
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
Sheila Kidd, Director of Corporate Asset Operations
OTHER CITY OF KINGSTON STAFF CONSULTED:
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
Page 4COUNC¡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*
K-Rock Centre2009 Results of Operations
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
K-Rock Centre2009 Results of Operations
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.
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Page 9couNctL 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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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.
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SL,3L6,ztgS1,130,876
5L,2L4,03Ls100,000
-sst3,gsgSO
SMG CANADA1??