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HomeMy WebLinkAboutCSD-002-23Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: June 19, 2023 Report Number: CSD-002-23 Submitted By: George Acorn, Director of Community Services Reviewed By: Rob Maciver, Deputy CAO/Solicitor Resolution#: JC-067-23 File Number: By-law Number: Report Subject: Community Hall Board Sustainability Update Recommendations: 1. That Report CSD-002-23 and any related delegations or communication items, be received; 2. That staff be directed to work with all Non -Consolidated Community Hall Boards, to develop work plans for their incorporation as not -for -profits, that would facilitate entering into formal Municipal Capital Facility agreements with the Municipality; 3. That staff report back to Council with the details of the work plans developed, identify the timelines for incorporation, and provide information on the costs associated for these incorporations; and 4. That all interested parties listed in Report CSD-002-23 and any delegations be advised of Council's decision. Municipality of Clarington Report CSD-002-23 Report Overview Page 2 This report provides Council with a brief overview of the Hall Board Sustainability project presented during the previous term of Council. In addition to summarizing the status of this work, staff is seeking approval to work with all non -consolidated hall boards to achieve incorporated not -for -profit status. This incorporation would facilitate the creation of operating agreements to formalize the roles and responsibilities of both the volunteer boards and the Municipality. 1. Background 1.1 At the October 25, 2021, Joint Committee Meeting, the Deputy CAO/Treasurer presented Report FSD-049-21 Roadmap for Community Board Sustainability. This report highlighted the ongoing financial challenges that many of our volunteer board - operated community facilities were facing, specifically due to the COVID-19 pandemic and the myriad of closures and public health restrictions put in place. 1.2 At that time, there was a genuine concern what the long-term effects the closures and stricter public health guidelines could have on our volunteer -operated hall boards and the valuable services they provide in their respective communities. 1.3 Throughout the pandemic, Council continued to support community hall and arena boards, including approval of a $60,000 Community COVID-19 Support Program in May 2021. Additionally, approval was given in October 2021, to utilize funds from the Province's COVID-19 Recovery Fund to support screening and vaccination verification costs. At that time, Council also provided funding approval to cover the costs for snow removal at all community facilities for the 2021/22 winter season. The support for snow removal continues, and all associated costs have been included in the 2023 budget. 1.4 Since 1989, when Council approved the dissolution of the above as Boards of Council, the non -consolidated boards have been allowed to operate in a similar fashion as they did historically. Additionally, there remains no formal operating agreements with the non -consolidated boards, apart from a lease arrangement for the Kendal Community Centre. 1.5 Subsequent direction from Council was for staff to work with the non -consolidated boards to incorporate, which would facilitate the execution of some form of operating agreement between the Board and the Municipality. To date that work has not been completed. 1.6 In 2008, the Clerk's Department report CLD-10-08, provided Council the results of their review of existing by-laws that had established Boards under the former Community Recreation Centres Act, 1974, which was repealed in January 2003. This resulted in the establishment of new by-laws under the Municipal Act, 2001 for the creation of Municipal Service Boards for the Solina Community Hall and Tyrone Community Centre. Municipality of Clarington Report CSD-002-23 Page 3 1.7 In 2014, the Municipal Solicitor's report LGL-008-14, subsequently recommended to Council to re-establish the Newcastle Village Community Hall as a municipal service board under the Municipal Act, 2001. 1.8 The associated by-laws provide that "Council hereby establishes a municipal service board to control and manage the Property as set out in the By-law". These by-laws also establish other operating parameters including the use of the hall, general board mandate, board composition, financial records, and operating repair/maintenance responsibilities. 1.9 In September 2003, Council approved a lease agreement between the Municipality and the Kendal Community Association (COD-37-03), for the use of the Kendal Community Centre. Subsequent lease renewals have been approved by Council and a lease agreement remains in effect today. Regardless of this agreement, it remains the recommendation to consider a Municipal Capital Facility agreement for this hall. 2. Current Situation 2.1 In recent months, Community Services staff have scheduled in -person attendance at hall board meetings. Since taking over liaison responsibilities in September 2020, this represented the first opportunity to meet with the boards in person. Previously most communications have been via email or virtual meetings. 2.2 With the meetings we have attended, a common theme is the positive rebound in community events, rentals and revenues in these buildings, post -pandemic. This is very encouraging news. There is no indication, currently, of the need to consider moving beyond Step 1 of the Roadmap to Financial Sustainability. This will be achieved by having the boards incorporate as not -for -profits and executing capital facility agreements. 2.3 We have also advised all boards that will be affected by the recommendations in this report that we will be seeking direction to initiate plans for next steps and that we will be contacting them to schedule planning meetings. 2.4 At the January 9, 2023, General Government Committee meeting, Report LGS-003-23 Appointments to Various Boards and Committees, was presented. The report recommendations included changes to Municipal Service Board's terms of reference, reducing the number of Councillors sitting on these Boards. For efficiency reasons, staff are not considering the development of additional Municipal Service Boards as part of our work going forward. 2.5 There are seven community halls not established by municipal by-law as municipal service boards, including the Kendal Community Centre. The others are Bowmanville Memorial Park Clubhouse; Brownsdale Community Centre; Hampton Community Hall; Haydon Community Hall; Newtonville Hall; and Orono Town Hall. Municipality of Clarington Page 4 Report CSD-002-23 2.6 The three community halls operated as municipal service boards, operate under the authority of a Council approved by-law. These by-laws mandate the board to operate and manage the building and clearly identify roles and responsibilities. The by-laws also speak to board composition; meetings protocol, audit, and accountability as well as risk management and insurance, to name a few. 3. Risk Considerations 3.1 Without any formal operating agreements in place, there are questions related to general liability, director's liability and occupational health and safety of the workers and volunteers at these non -consolidated community halls. As we have seen in recent years with the Bowmanville Older Adults Association, the execution of a Municipal Capital Facility Agreement, would better outline the specific responsibilities of a not -for profit hall board and the Municipality. 3.2 There is commercial liability insurance in place for all non -consolidated hall boards. The policies were facilitated with assistance from the Municipality and identify each hall board as the insured party. These boards and their operations are not included in the municipal insurance coverage. Our research indicates these policies have likely been in place since 2000. 3.3 The Municipality is responsible for the cost of the annual premiums. For the current period of August 15, 2022, to August 15, 2023, the total cost for all seven halls was $7,056.00. The policy limits include Bodily Injury and Property Damage ($3M per occurrence) and Total General Aggregate Limit of $5M. An overview of the policy details indicates liability coverage for the members of the hall board and any volunteer workers engaged in hall board operations. 3.4 The Municipality, in terms of the Occupational Health and Safety Act, is not the employer nor the supervisor of these community hall locations. A formal operating agreement would better identify roles and responsibilities for workplace safety. 4. Proposed Next Steps 4.1 Following approval of this report, staff will convene meetings with all non -consolidated hall boards to develop a plan to work toward their incorporation as not -for -profit groups. Staff will provide an overview of the incorporated not -for -profit model, identify the requirements for registration and illustrate the many benefits that could arise from this operating model. The results of this work will be summarized and will form the background for reporting back to Council. 4.2 Not -for -profit corporations provide products or services to improve or benefit a community. These organizations are usually concerned with generating enough revenue to support their chosen community. Any money made by a not -for -profit is not for the personal gain of its directors, members, or officers, but goes back into the organization to further its aims and projects. Municipality of Clarington Page 5 Report CSD-002-23 4.3 Staff will also be working on draft language for the future Municipal Capital Facility agreements using existing agreements as a template. 5. Financial Considerations Operating Costs 5.1 There is no recommendation to revise the current annual financial support model provided to hall boards at this time. Any request for increased operating funds would be directed to Financial Services and would be incorporated in the appropriate operating budget submission to Council. 5.2 In addition to the costs associated with the ownership of the community hall buildings, there is annual consideration for operating grants to be requested by these boards. Prior to 2020, grants were approved through the community grant program. Since that time, all requests are made to Financial Services and are considered as part of the annual budget submission. 5.3 The summary of operating grant funds issued to non -consolidated community halls for 2017 — 2019 and 2022 is as follows: Memorial Brownsdale Hampton Haydon Kendal Newtonville Orono Park Community Community Community Community Hall Town Clubhouse Centre Hall Hall Centre Hall 0 11,499 14,000' 0 12,000 16,800 9,000 5.4 Staff will investigate the costs associated with incorporation as well as any additional ongoing costs to operate as a not -for -profit. The total cost and possible funding recommendations would be included in the subsequent report back to Council. Capital Costs 5.5 The Municipality, as the owner of these buildings, is responsible for the overall integrity of the buildings, including the structural components, roofs, building envelopes, water supply and waste systems, life safety systems and major mechanical/electrical systems. These responsibilities would be generally consistent with the role of a building landlord. 5.6 As part of our four-year capital planning exercise, all major repairs or replacements to community halls are added to the proposed project list. Facility Services staff would review these projects as part of the overall budget. Based on a detailed review and priority setting exercise, the Council would consider projects as part of the Community Services capital budget submissions. Municipality of Clarington Report CSD-002-23 Page 6 5.7 For 2017 — 2022, the total value of capital works completed on community hall buildings was $1,460,408. This included significant renovation projects at Orono Town Hall and Newcastle Town Hall. All community halls are aging, and the annual capital costs to maintain them to municipal standards will only grow. 5.8 The approved capital budget for 2023 includes several smaller projects at multiple community halls, including exterior building repair work, lighting system replacements and shared cost installation of air conditioning at one location. 6. Concurrence 6.1 This report has been reviewed by the Deputy CAO/Treasurer, who concurs with the recommendations. 7. Conclusion 7.1 It is respectfully recommended that Council approve this report to allow staff to work with the hall boards to prepare plans for incorporated not -for -profit status. Moving forward in this new direction will address the concerns indicated in this report while continuing to support the valuable work these volunteer boards provide their communities. Staff Contact: George Acorn, Director of Community Services, 905-623-3379 ext. 2502 or gacorn@clarington.net. Interested Parties: • ,3�1'"F1i . ii�llll'a►�-[a'iT77n11111NTi:Z41m71TO>W-3 Brownsdale Community Centre Hampton Hall Haydon Community Centre Kendal Community Centre Newtonville Hall Orono Town Hall