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Home My WebLink AboutPSD-124-05 Cl~#Jgron REPORT PLANNING SERVICES Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Report #: PSD-124-05 File #: PLN 16.2.2 6PA-S9S-D 5 By-law #: Date: Monday, October 17, 2005 Subject: V ALLEYS 2000 ONGOING FUNDRAISING AND FINANCIAL SUPPORT RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PSD-124-05 be received; 2. THAT the $50,000 interest free loan to Valleys 2000 (Bowmanville) Inc. be deemed a grant; and 3. THAT Rev. Frank Lockhart, Chair of Valleys 2000 be advised of Council's decision. Submitted by: Davi . Crome, M.C.I.P., R.P.P. Director of Planning Services Reviewed b,Q~~ 6JL Franklin Wu, Chief Administrative Officer DJC*FL*sn October 13, 2005 CORPORATION OF THE MUNICIPALITY OF ClARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-0830 REPORT NO.: PSD-124-05 PAGE 2 1.0 BACKGROUND Valleys 2000 (Bowmanville) Inc., generally referred to as Valleys 2000, is a community- based organization comprised of volunteers, who share a vision of developing trails, recreational amenities and environmental enhancements within the Bowmanville and Soper Creek Valleys. For the past seven years the project has focused on trail construction, planting, and education of stakeholders about Valleys 2000 and land acquisition. In December 1998, Council supported the initiative and agreed to assist in developing the project. In April 1999, Council approved a Memorandum of Understanding (MOU) between the Municipality of Clarington and Valleys 2000. It detailed the responsibilities of each party in implementing the project. Valleys 2000, and the Municipality have carried out the responsibilities that they each assumed in this first Memorandum and have recently signed a second MOU. Valleys 2000 is an incorporated non-profit, charitable organization, carrying liability insurance and performing fund raising in addition to carrying out volunteer works. 2.0 FUNDRAISING Valleys 2000 has applied and received Trillium funding for trail improvements, bank protection and restoration, engineering and design works. Trillium will not provide the funding to the Municipality directly. In addition, Valleys 2000 has received many donations of in-kind labour and materials to assist in the construction of works. Volunteer works have been carried out by the Valleys 2000 Board, Courtice Secondary School students and others under the direction of Valleys 2000. Rev. Lockhart provides an annual report to Council at which time he notifies them of the monies that Valley 2000 has been able to raise to continue with their works, to date thousands has been raised excluding in-kind contributions of labour, trees, rocks, granular, trucking, earthmoving etc. 3.0 NEW MEMORANDUM OF UNDERSTANDING The Memorandum of Understanding (MOU) between the Municipality and Valleys 2000 articulated the partnership and each party's responsibilities including liability, safety, public relations and ongoing maintenance. The MOU had a sunset date of December 31st, 2004 at which time the remaining assets of Valleys 2000 were to be turned over to the Municipality for designated use in the project or to charities as per Valleys 2000 Letters of Incorporation; alternatively the MOU could be extended. The MOU was extended for a further five years in December of 2004. The New Memorandum of Understanding uses the same principles, it has been updated to recognize the working relationship that has developed between Valleys 2000 and the Municipality. REPORT NO.: PSD-124-05 PAGE 3 4.0 INTEREST FREE LOAN The Valleys 2000 Board received an interest free loan for $50,000 taken from the Impact Escrow Reserve Fund in February of 2000; at that time the approved Council recommendation included an additional $88,000 that Valleys could request for Phase Two development, these funds have not been requested. The Municipality of Clarington has become the owner or leaseholder of the lands that Valleys 2000 is carrying out their development work on and the benefactor of numerous in-kind donations and grants that Valleys 2000 have secured for the improvement works. Trail development has also received more focus through the capital budget process to continue and enhance Valleys 2000 efforts. The initial $50,000 interest free loan was used to develop a fund raising campaign strategy ($16,000) and the remainder was to retain a consultant for design and engineering works for the trail system (see Attachment 1). Valleys 2000 have not asked to have the interest free loan forgiven; however, since most of their fund raising has been through in-kind contributions and grants from Trillium, Evergreen and MNR there has been very limited ability for Valleys 2000 to repay the loan. In addition, repayment of the loan would just reduce the works that are occurring on municipally owned lands without any additional benefit to taxpayers. As the development of the trail is to the benefit of the overall community, no user fees are, or could reasonably, be expected to be attached. The intention of the interest free loan was to provide the necessary seed money for Valleys 2000 to acquire other funds and that purpose has been met and the expectations surpassed. As such, during the annual review of outstanding accounts this interest free loan was flagged as an anomaly and we recommend that it be converted from a loan to a grant. 5.0 CONCLUSION Valleys 2000 (Bowmanville) Inc. are to be congratulated for the initiatives they have undertaken and the contributions that they have been able to receive from granting agencies and contractors who are willing to provide in-kind donations. In addition, the monies that they receive as direct donations have been, and will continue to be, used for works that benefit the Municipality of Clarington through the development of the trails system and other works in the Soper and Bowmanville Creek valleys. The trail systems have become a cherished community asset reflecting the community values and aspirations of residents assisting in providing an excellent quality of life. Attachments: Attachment 1 - Letter from Valleys 2000 detailing how loan was spent List of interested parties to be advised of Council's decision: Rev. Frank Lockhart Attachment 1 To Report PSD-124-05 VALLEYS 2000 (Bowmanville) Inc. P. O. Box 364 Bowmanville, ON LIe 3LI (905) 623-6793 .....----. .__.._....._.ou_...u...._. ..___.,..___~.. .._.___~...__._'m."._"...'._...n......,_ ....,...... .....~._-,....._*~..,.__._._____._...._,...~...h...___..._ September 29,2005 Peter Windolf Planning Dept. Municipality of Clarington Peter Further to our meeting last night, lhave;: reviewed the amounts paid for consulting fees. The Memorandum ofUnder5tanding of March 23,2000, slates thaI the loan to Valleys on50,OOO is allocated for consultants' fees in the amounts of$16,000 for fund raising & $34,000 for design & engineering. I have located paid invoices from Goldie Co. between MarchlOO & June/{lO totalling $17,196.40 for fund raising consulting & from Schollen & Co between April/99 & April/OO totalling $39,693.05 for design & engineering consulting. These invoices & supporting bank records are available for your review ifnecessary. r lTlIst this is what you require. Please call if there are any questions. Bill H_~~_ V"," 2000 (B'~M.ill') ,,, 10-d :S;B9t>z:Z9 sa6 ~ ~ g ~3Hi3nH Wd BS:10 ~00Z-6Z-d3S