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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 ff.r ~ £ ~'~KVEE D RING FEB 1 I; 2003 CORPORATE SERVICEs "Service Above Self" ~Oln~v (lU~ 0+ ÞICUtRlNG 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 """.~,--,..~.,"' '-""~"_., ." _. _... -"':"-" 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/ " "-"" / <.:.. '......--j¡ "" -" '/,,"/1',/,'/ :~:~"~~, / "c-<-v / J . <d/ I ¥r ' ¡ Scott Staples Ken Page President Environment Director The Rotary Club of Pickering ~",'""----"_."-"-'", "=:::;;:.,L..~, C, , ." ,." ~,-..-' J 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 ," '," ATTACHMENT#_Lf _TO R.EPORT#J!~~J~-o3 "Service Above ROTARY CLU B Self" 0' Pickering November 30, 1999 : ~ . , - . 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 CommitÅ“e, 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? -" '., p~~ 2 of2 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 ~" ......~ . ' ¡ I I I- I I I. I ! ?