FEASIBILITY STUDY

FRAMEWORK
What is a Feasibility Study? Council involvement. The following are more specific
A feasibility study is essentially a process for circumstances that may prompt the need for a
determining the viability of a proposed initiative or feasibility study:
service and providing a framework and direction
for its development and delivery. It is a process for ™ significant capital investment is required
making sound decisions and setting direction. It is ™ significant City funding or public fundraising is
also a process which: required
™ is driven by research and analysis ™ significant commitment or exclusivity of City
™ usually involves some form of consultation with land or building floor space and time is
stakeholders, community, users, etc. required
™ focuses on analyzing, clarifying and resolving ™ there is no clear champion
key issues and areas of concern or uncertainty ™ financial viability is in question (costs compared
™ very often involves basic modeling and testing with anticipated revenues)
of alternative concepts and approaches ™ community needs require further analysis and
validation
There is no universal format for a feasibility study. ™ there is potential to reach a large market
Feasibility studies can be adapted and shaped to segment or affect a large number of people
meet the specific needs of any given situation. ™ accessibility to the service is an issue (pricing
barriers, physical barriers, discriminative social
When is a Feasibility Study barriers, proximity, geographic equity, etc.)
™ there is a perception of competition with
Needed? existing service providers (commercial or
As outlined in the Leisure Services Policy, all new community based) and the City’s mandate or
community leisure service initiatives or proposals role may be questioned
which fall outside the Department’s current realm or ™ there is no clear indication of the preferred
scope of service provision are subject to two initial method or source of delivery
evaluations: the Community Needs Assessment and ™ public safety is concerned
the Options Analysis. If the results of these evaluations ™ there are significant legislative requirements
are inconclusive or fail to establish clear direction, (health, safety, liability, certification
then a feasibility study may be required if it is felt requirements) related to the initiative which
that the proposed service merits further review. concern, impact and relate to the City
™ there is significant risk inherent in the service
The requirement for a feasibility study will be at the initiative (financial, political, public liability,
discretion of the Parks & Recreation Department’s social, etc)
Management Team. Generally, if a proposed initiative ™ the initiative entails significant operating
has major political or financial implications to the City requirements (ie. financial, administrative,
or has significant potential community impacts, then staffing, materials and supplies, skill
a feasibility study will be required. Declaring the development, customer service, training/
need for a feasibility study also implies that the development, etc.)
initiative will require some consultative process and

Leisure Services Policy

Any one of the above may point to the need for a ™ determine the City’s role and impacts
feasibility study. The focus of all feasibility studies (financial, resources) in the delivery of the
should always be placed on the need for service even service
if a proposed initiative involves major facility ™ produce an implementation strategy for the
development that may be perceived as the final development and delivery of the new service
outcome or product. Facilities are a resource for
accommodating community services and should be The following summarizes typical contents of a
addressed within this context as part of the feasibility feasibility study. The level of detail, analysis and
study. involvement may vary depending on the nature
and scale of the proposed initiative.

Responsibility for a Feasibility 1. Service Concept

Study ™ Description
The responsibility for conducting a feasibility study ™ Origin
will depend on circumstances surrounding the ™ Conformance with City policies, goals and
proposed service concept. The City may assume lead directions.
role if there is no organized proponent or
organization attached to an identified need or service
concept. Alternatively, the City may assist or team up 2. Community Benefits/
with a community group or private proponent who Outcomes Assessment
is advocating a new community service or program. ™ Personal Health - physical development, skills
In any case, the City must be involved in the feasibility development, mental health reduces the risk of
study process as a key stakeholder and provider of heart disease, stroke, combats osteoporosis, etc.
resources to support a service and to ensure that ™ Build strong families and healthy communities -
community needs and interests are represented ethnic and cultural harmony, community pride
accurately. and identity, community participation,
community heritage.
™ Ecological Survival - environmental health,
Typical Contents of a protect public open spaces, natural features,
Feasibility Study ecological functions, wildlife habitat, awareness
and respect of environment.
A typical feasibility study will: ™ Economic Generator - business development,
productive workforce, reduce taxes, tourism.
™ verify community needs for a proposed leisure
™ Human Development - development of
service
children & youth’s full potential, lifelong
™ assess the benefits and overall value of a
learning.
proposed service to the community
™ Quality of Life - build self-esteem and positive
™ assess market conditions and trends
self image, enhance life satisfaction, etc.
™ articulate a service concept (ie. format,
™ Reduces self-destructive and anti-social
content, theme, objectives/outcomes)
behaviour - crime, racism, isolation,
™ determine required resources (capital and
alienation, etc.
operating)
™ Reduces health care, social services and
™ determine costs and financing strategies (ie.
police/justice costs - foster care,
Financial Analysis)
incarceration costs, etc.
™ review service delivery options and
recommend the most effective delivery
strategy

Leisure Services Policy

3. Community Needs 6. Service Delivery/
Assessment and Market Management Options
Analysis Review service delivery options in light of
™ Target markets/profiles (geographic/ the following criteria:
demographic) ™ Cost efficiencies
™ Needs assessment (ie. product or type of ™ Accessibility
service) ™ Affordability
™ Market supply and competition ™ Leadership capacity and commitment
™ Market share goals (production or service ™ Public interest
volume goals) ™ Liability-regulatory considerations
™ Trends analysis- socio-economic, demographic, ™ Service quality and customer responsiveness
environmental, recreational, etc. Short term ™ Resource/financing capacity
fad or long term need? ™ Service integration and continuity
™ Market growth potential ™ City role, financial impacts, impacts to other
™ Impacts to current markets programs, services, facilities.

4. Service Concept 7. Financial Assessment of

Development Preferred Options
™ Content ™ Capital expenditure projections
™ Format ™ Operating cost projections
™ Provision Levels ™ Capital and operating financing strategies-
™ Criteria/Standards (ie. quality, accessibility, pricing, subsidy, grants, sponsorships,
safety, customer service) fundraising, etc.

5. Resource Requirements 8. Recommendations

™ Capital- land, structure, space, furnishings, ™ Preferred service delivery approach
fixtures, equipment, computers, technological ™ City role and impacts (ie. financial, resources)
systems ™ Implementation strategy
™ Facility provision options (rental/lease,
renovations, re-using/re-adapting existing
facilities, joint venture, new development)
™ Operating- staff (administrative, instructional,
supervisory/management), utilities, materials,
supplies, etc.

Leisure Services Policy November 2002

Typical Feasibility Study Moving on to Business Plans
Process:
Once feasibility has been established for a proposed
The following summarizes a typical leisure service and there is clear direction (Council
feasibility study process for a approval) on the preferred method of delivery, the
community leisure service: next stage in the development of the service would
be to complete a business plan. A business plan is
Phase 1 Project Development: Identify essentially a detailed blue print for the development
stakeholders, develop a steering committee, and delivery of a new program or service. It
produce a terms of reference, call RFP and retain articulates target markets and populations, the
consultant if necessary, consulting services program content/format, provision levels (ie. # of
agreement, refine process timelines and programs, # of classes, # of spaces), program location
milestones, develop task teams, clarify roles and and space needs, detailed capital and operating costs
responsibilities, communications plan, etc. (ie. equipment, materials, staff, advertising, space
rental/development, utilities, etc.), fee structures,
Phase 2 Background Research: Collect data, revenue projections and targets, administrative
trends analysis, market analysis, community systems and procedures (ie. registrations, inquiries,
demographics profile, identify issues and etc.), governance and management structure,
opportunities related to contemplated service. contractual/legal considerations, service standards,
reporting/evaluation systems, marketing and
Phase 3 Community Consultation: Community communication strategies and short and long term
needs assessment through focus groups, forums, service business goals (participation levels/market
surveys. absorption, market share, revenue, service evolution/
development/growth).
Phase 4 Service Concept Development: Develop
service concept and format, resource In the event the City is the preferred service provider,
requirements, capital requirements, service it would be the City’s responsibility to complete a
delivery alternatives, financial strategies, etc. business plan. In this case, while the City may be the
primary delivery source, it may elect to contract a
Phase 5 Community Consultation and Market portion or all of the service to an outside provider
Testing: Obtain input on service concept and through an RFP or tender process. The business plan
format, delivery alternatives, costing and pricing would specify these kinds of details.
strategies. Focus groups, surveys, forums, etc.
If a specific community group or private interest is
Phase 6 Final Recommendations: Develop final identified as the most logical and appropriate
recommendations on the service format, preferred provider of a new service, then the City would work
delivery approach, City role and involvement and with that group to develop a business plan as well as
implementation strategy. any ensuing legal agreements.

If the feasibility study determines that a service is

best provided by an undetermined outside source,

November 2002
“The support of the Government of Ontario through the Ministry of

Leisure Services Policy

Citizenship, Culture, Tourism and Recreation is acknowledged.”
“The views expressed herein are those of the City of Burlington
and do not necessarily reflect those of the Government of Ontario
and the Monistry of Citizenshop, Culture, Tourism and Recreation.