HomeMy WebLinkAboutCS 16-03
REPORT TO FINANCE &
OPERATIONS COMMITTEE
Report Number: CS 16-03
Date: February 17, 2003
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
Rotary Club of Pickering Write Off of Uncollectable Account
Recommendation:
1. It is recommended that Report CS 16-03 of the Director, Corporate Services &
Treasurer be received and that;
2. the outstanding account receivable (donation) from the Pickering Rotary Club for the
Millennium Trail in the amount of $100,000 be written off in 2003;
3. this net amount to be expensed of $85,686 be included in the annual Current
Budget to be financed from the tax levy; and,
4. the appropriate officials of the City of Pickering be authorized to take the necessary
action to give effect hereto.
Executive Summary: This donation to the City has been outstanding for
approximately 4 years and it now appears appropriate to write it off as non-collectable.
Financial Implications: The donation from the Rotary Club in the amount of
$100,000 was a part of the original financing plan for the Millennium Trail project.
Given the passage of time and the efforts to collect this money being unsuccessful, it
now appears appropriate to write it off. As such it should be included in the 2003
Current Budget as an expenditure to be financed from the tax levy.
Background: I understand that some members of City staff and elected officials
had discussions with representatives with the Rotary Club to encourage them to meet
their commitment. These endeavours have not been successful to date.
Therefore, on January 16, 2003 the Chief Administrative Officer directed that I write the
President of the Rotary Club to confirm, one way or the other, of their intentions
Report CS 16-03
Date: February 17, 2003
Subject: Rotary Club of Pickering Write Off of Uncollectable Account
Page 2
regarding the commitments stated in their correspondence dated November 30, 1999.
With no reply being received, the C.A.O. directed that I again write the Club on
February 7, 2003. A response was received on February 14, 2003. Attached for your
information is a copy of my letters to them and their letters to the City.
In their response they indicate a variety of reasons for the funds not being advanced to
the City. They also suggest that a portion of their commitment has been discharged
through donations other than in the form of the "cheque" presented to Council in 1999.
However, these funds were required to pay project costs therefore Council approval is
required to charge this expense to the 2003 Current Budget.
As indicated above, it now appears appropriate to write off the donation of a $100,000
from the Pickering Rotary Club as uncollectable. To do so requires Council approval as
the original pledge to the City for the donation was included in the Council approved
expenditure and financing plan for the Millennium Trail. Normally this would result in a
shortfall in financing of $100,000 however, donations not previously anticipated resulted
in the net overall shortfall being reduced to $85,686.
Attachments:
1.
2.
3.
4.
Correspondence from the Rotary Club, dated February 10, 2003
Correspondence to the Rotary Club dated February 7, 2003
Correspondence to Rotary Club, dated January 16, 2003
Correspondence from Rotary Club, dated November 30, 1999
Prepared I Approved I Endorsed By:
~-~ -=
Gillis A. Paterson
Director, Corporate Services & Treasurer
GAP:vw
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City Council
"
P.O. Box 7, Pickering, Ontario L 1V 2R2
Tel: 416.565.4160 www.rotary-pickering.org
.-\!TACHMEN! #-1-. TO REPORT#~"'O 3
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FEB 1 I; 2003
CORPORATE SERVICEs
"Service Above Self"
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February 10,2003
Gillis Paterson
Director, Corporate Services & Treasurer
The City of Pickering
One the Esplanade
Pickering, Ontario
L1V 6K7
Dear Mr. Paterson,
Subject: City of Pickering Millennium Trail
In response to your letter of January 16th, 2003 the Rotary Club of Pickering continues to
support the Waterfront Trail. Weare anxious to continue on our funding commitment of
$100,000 as detailed in our letter of November, 1999.
Several areas of our letter of November, 1999 emphasize our commitment and are
important to our Rotary Club. They are;
"Further, we expect that our funding will only be spent on projects that are
jointly acceptable to the Toronto Region Conservation Authority (TRCA),
the Town of Pickering, the just forming Waterfront Coordinating
Committee, the Westshore local community groups and the Rotary Club of
Pickering. "
And
"Our Rotary Club is not interested in building this project out of sequence."
And
"Keep all the stakeholders involved. Don't take control away from the
stakeholders. "
Furthermore, during Scott Staples' presentation to Council, November 1999, Councilor
Dave Ryan asked how and where Rotary's commitment of$100,000 would be spent.
Scott responded that our Rotary Club wanted to spend the dollars on projects we would
build in the Rotary Park. At the time we were expecting Rotary Park to be what is now
called the "Rotary Frenchman's Bay West Park".
Our Rotary Club still wants to keep its commitment and spend the dollars that we raise
for projects within the "Rotary Frenchman's Bay West Park", Our Club wants to raise
funds for specific projects that are approved by all the stakeholders. Our Club wants to
physically build the projects either through the efforts of the members and/or through the
donation of goods and services in kind from local businesses. This has always been the
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Page 2 of3
objective of Rotary since our inception in 1905. We expect that'our labour will
contribute towards our dollar commitments.
During the park planning process last spring the TRCA decided that they no longer
wanted a new building like an Interpretive Centre on the site. A major portion of our
$100,000 commitment was earmarked for this type of facility. We immediately started
working with the City on a new location. The West Shore Community Centre is
currently under consideration for an addition to facilitate an Environmental Education
Centre. Our plan is to split our commitment; $50,000 in the park and $50,000 towards
the Environment Education Centre wherever it ends up being located. If the Environment
Education Centre project dies then we would revert to the entire $100,000 being
committed to the park site.
We continue to point out that we are reluctant to raise funds or spend funds until the City
and the Toronto Region Conservation Authority have a signed Property Management
Agreement in place. We appreciate that the City has passed a bylaw (June, 2001) naming
the Park including our club's name. This gave us enough confidence to begin by building
a small entrance garden and sign project. Also, the confidence to press ahead with
preliminary plans for the Environment Education Centre. We have always agreed that all
projects would be built to plans of the highest standards, approved by the Cities Planners
and Building Department.
Unfortunately, the Millenium Trail project spending decisions became very oriented
towards the East Side ofthe Bay. Some funds were spent on the West side for a paved
trail and parking lot. Decisions had to be made rapidly so we were not involved on how
limited West Side funds would be spent or prioritized. We only found out that a paved
trail and parking lot were going in after the work was completed! This is not how we
expected the partnership to proceed however, we also understood the time pressures
associated with the Millennium Grant applications.
We are sure that you can appreciate how frustrating the Rotary Park project has become
within our Club. Half of our current members joined after 1999. Only one member of
the 1999 Board of Directors is still on the Board. Your letter is the first correspondence
we have received from the City since our letter of November, 1999.
New momentum for the Rotary Park project will have to be established. We have
reviewed the matter with our current Board and still want to commit to a successful park.
As far as the $100,000 cash donation the City understood and expected towards the
Millenium Trail, we apologize for any misunderstandings, and you should close out this
account and request the approval of Council to write it off. Scott Staples and Justice
David Stone met with Mark Holland and Mr. Buntsma last June and thought we had
come to an understanding. We never anticipated that our $100,000 would be paid by
writing a cheque to the City. As a service club, we employ the talents of our members to
Page 3 of3
raise money, to arrange funding partnerships. To create plans and to build projects. The
labour of our members is a major component of our projects. We did not expect to write
a cheque and then have nothing further to do with the Park or the Trail; clearly we
intended a long-term p'artnership with you.
With respect to the Environment Education Centre, we discussed that while we would
have to have all plans approved by the City, we hoped to partner with other groups and to
build the building. We expect that no strict accounting would be necessary for the City to
accept that we have discharged $50,000 of our commitment. Over the years, we assume
that the City will receive far more than $100,000 worth of improvements through the
Park, the Environment Education Centre and the Trail projects from our efforts.
Our long-term commitment is to serve our community. The Rotary Club of Pickering
will always work on community projects that serve the citizens and the City of Pickering.
Almost every town or city that has a Rotary Club has a Rotary Park. Let's support each
other to make it happen in Pickering. Rotary has been a supporter of the Waterfront Trail
since its inception. We continue to look forward to working with the City of Pickering on
the "Rotary Frenchman's Bay West Park" and making a completed Waterfront Trail a
reality in Pickering!
Sincerely,
d1/ II f) í/
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Scott Staples Ken Page
President Environment Director
The Rotary Club of Pickering
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vid Green
//Parks and Trails
.cc Wayne Arthurs, Mayor
.cc Mark Holland, Councillor - Ward 2
.cc Dave Ryan, Councillor- Ward 1
.cc Everett Buntsma, Director, Operations & Emergency Services, The City of Pickering
.cc Waterfront Coordinating Committee, The Town of Pickering
.cc Justice David Stone, Environment Committee, Pickering Rotary
Citlf 0#
,'1TTACHMEN"" #~ TO REPORT # C:s 1¿--o3
Pickering Civic Complex
One The Esplanade
Pickering, Ontario.
, Canada
LIV 6K7
Direct Access 905-420-4660
cityofpickering.com
CORPORATE SERVICES DEPARTMENT
Department 905-420-4634
North Pickering 905-683-2760
Facsimile 905-420-5313
corpserv@city.pickering.on.ca
February 7, 200.3.
Reaistered Mail
Mr. Scott Staples, President
Rotary Club of Pickering
P.O. Box 7
Pickering, ON L 1V 6B4
Dear Mr. Staples:
Subject:
City of Pickering Millennium Trail
Further to my letter to you of January 16, 2003 this is to enquire as to the status of your
consideration of this matter. As mentioned in that previous letter, we are closing our
books for 2002 as well as closing the accounts on the Millennium Trail project to which
your organization committed to contribute $100,000 in 1999. I require a response from
you by February 28, 2003 otherwise, I will have to advise the Council of the City of
Pickering.
I look forward to an early response.
Yours truly
.~ç~~
GAP:vw
Attachment
Copy: Mayor
Councillor Mark Holland
Councillor David Ryan
Chief Administrative Officer
Director, Operations & Emergency Services
Manager, Accounting Services
Gillis A. Paterson,
Director, Corporate Services & Treasurer
Citq o~
ATTACHMENl #~TO REPORT#.£.£/~ -~3
Pickering Civic Complex
One The Esplanade
Pickering, Ontario
Canada
LlV 6K7
Direct Access 905-420-4660
cityofpickering.com
CORPORATE SERVICES DEPARTMENT
Department 905-420-4634
North Pickering 905-683-2760
Facsimile 905-420-5313
corpserv@city.pickering.on.ca
January 16, 2003
Mr. Scott Staples
Environment Director
Rotary Club of Pickering
P.O. Box 7
Pickering, ON
L1V 6B4
Dear Mr. Staples:
Subject:
City"of Pickering Millennium Trail
Attached is your letter of November 30, 1999 indicating your commitment of $100,000
towards the "Millennium Trail" in the City of Pickering. As we have not received these
funds to date or any subsequent correspondence from you, I wish to reconfirm when
these funds are forthcoming to the City. Failing receipt of such information and funds, I
must close out this açcount and request the approval of Council to write off the
$100,000 previously committed and not received. Your early response to this request
would be most appreciated as we are preparing for the 2002 audit and wish to reflect
this properly on our financial statements.
Please do not hesitate to contact me if you wish to discuss any matter of the foregoing
further.
GAP:vw
Attachment
Copy:
Yours t~ ~. ...,q;~""""
.--.,"-,.._.~~ ~,- '\ --.......,
Gillis A. Paterson,
Director, Corporate Services & Treasurer
Mayor
Councillor Mark Holland
Councillor David Ryan
Chief Administrative Officer
Director, Operations & Emergency Services
Manager, Accounting Services
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ATTACHMENT#_Lf _TO R.EPORT#J!~~J~-o3
"Service
Above
ROTARY CLU B
Self"
0' Pickering
November 30, 1999
:
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,
-
. Mark HoIkåd
'Councillor -Ward 2
The TOwn of Pickering
One the Esplanade
Pickering, Onnuio .
LIV6K7
P.O.BOX 7, PICKERING ONTARIO L 1V 684
Dear Mark,
S~ject: Millenium Trail
The Rotary Club of Pickering is pleased to annonnce its support for the Millenium Trail
Project We anticipate that the Millenium Trail and the Rotary Park will both be projects
that we can an be proud ot: The result will raise the profile of our community arid the
RDtaIy Club of Pickering. We would have to consider the withdrawal of our funding
comrnitinent if we ever have the feeling that this project is negative to the community or
to our dub. - . . -' - '-
To date, discussions have anticipated the. Pickering Rotary Park at the south end at
WestshQre Boulevard (area. bounded by Lake Ontario, FrenchmJJ;I1'S Bay, Sumise A ven~e
and Westshore Boulevard, including the west spit). We expect that oUr fundlng
commitments will be spent in the park Further, 'we expect that our funding will only be
spent on projects that ate jointly acceptable to the Toronte Region Conservation.
Authority (TRCA), the Town of Pickering. the just foz:ming Wa:terftont Coordinating
Commitœe, the Westsbore local comnllmity groups. and the Rotary Club .ofPickering.
Our funding commitment is $lÚO,OOO over the next four yeárs~ The Rotary .fiscal year
end is June 30th. . Year 1999/2000'. . $40,000
Year 2000/2001 . $20,000 .
Year 200112002 $20~OOO
Year.2002/~OO3 $20,000
--
Total $100,000-.
We- encourage yoU to iDclUde reprèsentatives from the various community groups and
service clubs. on the Wateqront Coordinating Committee. This in mind, lte Rotâ.ry Club.
' of Pickering vvilI'be happy to nominate or have nominated such a representative.
ROTARY FOUR.WAYTEST "Of the things we Think, Say or D~" .
1. Is it the TRUTH? 2. Is It FAIR tò all concÎ:Jrned? 3. Will It build GOODWU.4. and BEM:.ER FRIENDSHIPS? 4. Will It be BENEFICIAL to all concerried?
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We understand that both our orgahizations have difficulty making multi-year
commitments for following Councils or Boards of Directors. Y e~ we have made it. work
in the past for ~e Joint sign project on the northeast corner of Liverpool and Kingston
Road. We have every confidence that the stakeholders can make it work for this
trai1/park project based on the continuing spipt of goodwiU and community,
None oftb.é stakeholders want a project that will reflect bacny on the town or their .
respective organizations. All 'of the stakeholders realize the importance of infrastructure
in making this overall'project'a success. Our Rotary Club is not interested in building
.' this project out of sequence, Educate us on the required infrastructure and sequencmg so.
that the entire project is a succe~s.
Keep all the stakehol4ers involved. Keep the momentum, which has been bUilt so . .
powerfully, around the project. Don't take control away from the stakeholders. Don't.
politicize the process to the point the project looses momentum. Don~t risk leaving the
waterfront trail uncompleted for another ten years! . .
oUr long-term commitment is to serve our community. The Rota:ry Club ofPj.ckering
will alway's work on community projects that serve the citizens and. the Town of .
Pickering. Almost every town or city that has a Rotary Club has, a ~otary Park' Let's
support each other. to make it happen in PicJcering.. Rotary has been a supporter of the
Waterfront Trail since its inception. We look forward to working with the T9wn of'
Pickering on this exCiting project .
Sincerely
~~êk,
, Marilyn.Cole .
President Elect. .
Scott Staples. .
Environment Director
avid Green, .
I
Parks and Trails.
. cc Waterftont Coordinating Committee, The Town of Pickering
.cc Everett Buntsma, Director, Parks and Facilities, The Town of Pickering
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