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HomeMy WebLinkAboutCSD-008-13 Clarftwin REPORT COMMUNITY SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: June 10, 2013 Resolution#:Cpd-351/-43 By-law#: N/A Report#: CSD-008-13 File#: Subject: SALE OF HOCKEY ARTIFACTS RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report CSD-008-13 be received; 2. THAT the Purchasing By-law be waived for this transaction; 3. THAT staff be authorized to sell the approximately 1,300 Hockey Artifacts to Mr. Garry Meyer and Mr. Mike Wigston for the amount of $50,000; 4. THAT the funds received through the sale of the artifacts be deposited into the C.S. Capital Reserve Account; 5. THAT the Municipality of Clarington be responsible for shipping costs of the Hockey Artifacts to Edmonton, Alberta; and 6. THAT Mr. Garry Meyer and Mr. Mike Wigston be advised of Council's decision. Submitted by: Reviewed by: R" Jos P. Caruana Franklin Wu, Dir tor, Community Chief Administrative Officer S ices J P C/ CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379 REPORT NO.: CSD-008-13 PAGE 2 1.0 BACKGROUND 1.1 In October of 2003, the Municipality by agreement with Brian McFarlane, Joan McFarlane, Brian McFarlane's Hockey Museum Inc. and Sports Family Limited purchased the following; • Approximately 1,300 Hockey Artifacts from Brian McFarlane's Hockey Museum • Exclusive rights to use the name of Brian McFarlane in connection with the display of the artifacts • Consulting services provided by Mr. Brian McFarlane for a period of three (3) years • Mr. McFarlane's assistance in attracting well known hockey personalities for the purpose of promoting the artifact display • A limited license from Sports Family Limited (McFarlane) to use the name and image of Peter Puck in connection with the artifact displays 1.2 The purchase price for the artifacts, limited "Peter Puck" license and Mr. McFarlane's personal services was two-hundred and twenty-five thousand dollars ($225,000). 1.3 In October of 2006 the Municipality hosted the grand opening of Total Hockey, a facility and display of the artifacts purchased from Mr. McFarlane. Subsequently, in February of 2008 Total Hockey was closed at the direction of Council. 1.4 In June of 2008 the Municipality contracted Mr. Ray Sandre to perform an appraisal of the artifact collection. The appraised value of the collection was established at fifty-one thousand, eight hundred and ten dollars ($51,810). 1.5 In July of 2008 Council directed staff to issue an RFP for the sale of the Hockey Artifacts and the "Total Hockey" trademark. 1.6 In November of 2008 staff reported the results of the RFP where one bid was received for a portion of the collection and another bid was received for the entire collection. No bids were received for the "Total Hockey" trademark. 1.7 Council did not accept either of the bids and provided direction to store the artifacts. 1.8 Subsequently, in June of 2009, Report COD-048-09 "Total Hockey Official Mark" was approved, authorizing a contract between the Corporation of the Municipality of Clarington and Total Hockey Worldwide LLC., Lakeville, MN to enter into agreement for the release of the Total Hockey Official Mark (By-law 2009-097). REPORT NO.: CSD-008-13 PAGE 3 2.0 EXPRESSION OF INTEREST 2.1 Since the collection has been in storage (2008) staff from time to time has been contacted as to the availability and price of the collection. Each inquiry has been provided a pictorial overview of the complete collection and staff has made themselves available to meet with any potential purchasers. Each inquiry resulted in no further action being taken. 2.2 In November of 2012 staff received an email from Mr. Garry Meyer of Edmonton, Alberta, explaining that through discussions with Mr. McFarlane he had learned that the Municipality owned Mr. McFarlane's former collection and inquired as to the Municipality's interest in selling. 2.3 After a series of emails and a visit from Mr. Meyer and his partner Mr. Mike Wigston for the purpose of viewing the collection, staff has received an offer from Mr. Meyer and Mr. Wigston in the amount of fifty thousand dollars ($50,000) for the collection and the Municipality would absorb the costs of shipping the collection to Edmonton. A preliminary estimate for shipping is approximately $2,500. 3.0 COMMENTS 3.1 Staff is recommending that Council approve the sale of the Hockey Artifacts to Mr. Garry Meyer and Mr. Mike Wigston in the amount of $50,000 and that the Municipality pay for the cost of shipping to Edmonton. 3.2 Staff is also recommending that the Purchasing By-law be waived for this transaction as the RFP process has previously been undertaken with no productive results and there is a very specialized, limited market for the assets recommended for sale. 3.3 The artifacts are currently in good condition and are being stored as directed in a heated area within a municipal facility. 3.4 At some point in time there may be a need to invest in the preservation of some of the artifacts. Over time many of the items in the collection (hockey sweaters, hockey sticks, printed material and photographs) will be susceptible to deterioration without ongoing care and maintenance. 4.0 CONCURRENCE: 4.1 This report has been reviewed by Nancy Taylor, Director of Finance and Jerry Barber, Purchasing Manager who concur with the recommendations. REPORT NO.: CSD-008-13 PAGE 4 5.0 CONCLUSION 5.1 Unless the Municipality identifies a need or use of the Hockey Artifact collection it is the opinion of staff that the collection be sold. CONFORMITY WITH STRATEGIC PLAN — Not Applicable Staff Contact: Joseph P. Caruana, Director of Community Services List of interested parties to be advised of Council's decision: Mr. Garry Meyer, Managing Director, Edmonton Oilers Alumni Association Mr. Mike Wigston, Red Planet Trucking Ltd.