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HomeMy WebLinkAboutCSD-07-044 - Interim Options for 2008 Annual Operating & Minor Sports Grants - Community Investment Strategy ) R Community Services Report To: Date of Meeting: Submitted By: Prepared By: Community Services Committee April 23, 2007 Ward(s) Involved: Date of Report: Report No.: Subject: Ann Pappert, General Manager, Community Services Dept. Ann Pappert, General Manager, Community Services Dept. (Ext. 2394) All April 20, 2007 CSD-07-044 INTERIM OPTIONS FOR 2008 ANNUAL OPERATING AND MINOR SPORTS GRANTS - COMMUNITY INVESTMENT STRATEGY RECOMMENDATION: That Council approve in principle the following principles of Option #2 as outlined in CSD-07-044 and inclusive of the following: A. For the calendar year of 2008 and for one (1) year only, guarantee and pre-commit grant funds for our successful 2007 Annual Operating and Minor Sports recipients for their 2008 operating year. The allocation of these funds would equal the recipients awarded 2007 grant plus an increase of 20/0 for 2008. B. Pause the Annual Operating and Minor Sports Groups grant application process for 2008 and respond to brand new grant requests through the existing General Provisional grant process. Direct all organizations who may request to move from General Provision into the 2008 Annual Grant Program to stay in the General Provision stream for one more year. C. Establish criteria to respond to "emergency" requests; the definition and criteria for the 'emergency' to be approved by Council, in advance; and pause the current appeal process. D. Require all successful 2007 annual operating and minor sports groups to submit a detailed cover letter with financial statements and audits, the letter to be within the format of the Corporation, advising of any 'significant' change they anticipate in 2008; the definition and criteria for 'significant' to be approved by Council, in advance. E. Organizations with Council pre-approved special or unique multi year agreements that occur in the 2008 calendar year will be treated outside of this motion. AND That Council direct staff to detail the implementation requirements of Option #2 and return to Council within six weeks with information, policies, pre-commitments and definitions requiring approval of Council. CSD-07-044 2 EXECUTIVE SUMMARY: In June 2006 as per Report CSD-06-085, the Community Services Committee approved the terms of reference to develop a Community Investment Strategy (CIS). Staff will be circulating an Expression of Interest to hire a consultant with the intention of bringing draft strategy recommendations forward to Council by the end of 2007. We anticipate that the CIS recommendations will advocate for key changes to the overall grant program in order to align the expenditure of civic resources with community and corporate strategic directions. In the interim, the grant application process for 2008's Annual Operating and Minor Sports grants begins in June of 2007 and rolls out over the next six months. The purpose of this report is to obtain Council direction to proceed with an interim, transitional approach towards implementing that 2008 grant application process. This report includes three (3) transition options for Council's consideration and provides an assessment of each option in Attachment A. The report concludes with staff recommending Option #2 and seeks Council's approval in principle, to allow staff to further detail Option #2's implementation and provide information back to Council within next six (6) weeks. This report does not attempt to rearticulate the needs, gaps and issues inherent in the current grant programs offered by the Community Services Department as this was detailed in earlier reports CSD-05-164 and CSD-06-085. REPORT: The goal of the Community Investment Strategy is to evolve the current civic grant programs administered by the Community Services Department and the non legislated programs of the Economic Development Division into a cohesive and accountable investment program; a program that aligns the expenditure of civic resources with community and corporate strategic directions. The investment program will strive to ensure the sustainable development, long term viability, resilience and/or community responsiveness of partners. A staff team has detailed the terms of reference and will be circulating an Expression of Interest to hire the project's consultant. We expect to return to Council in June 2007 for approval of the consultant and are vigorously working to bring preliminary strategy recommendations to Council by the end of 2007. Concern Identified In the interim, staff are concerned with proceeding as per the 'status quo' for the 2008 Annual and Minor Sports Grants, for many reasons. Most pressing is our sensitivity to the growing pressure on the community and Council with regard to amending the grant program. For many years Council has asked for a staff review of the grant process; a current process that neither addresses gaps and needs within the community nor proactively respond with a remedy to increase staff's capacity to undertake a reasonable assessment of our applicants' operations and financial status. Further, CSD staff from seven units administers 13+ types of grants with a total value exceeding $2.1 million. Time allocated to administering grants is estimated at 700 hours per year, plus additional volunteer time provided by community members serving on sub committees. We estimate 300-400 hours are specifically allocated to administer the Annual Operating grant application cycle. However, there is no one staff person assigned to provide full oversight and CSD-07-044 3 analysis of the grant system. There has been little opportunity over the years for staff to conduct the scope of review that Council and the community seeks with in-house resources. Three Options Considered Staff has identified three transitional options which might respond to the current situation. The following is a short summary of each option; an assessment of each option is detailed in Attachment A of this report. OPTION #1 Summary statement: Develop and implement "Quick Fixes" to the Annual Operating and Minor Sports grant program in time to coincide with the 2008 grant process which begins in June 2007. This is intended to address known outstanding community, Council and staff administration issues. For the purpose of this report, a "Quick Fix" is defined as a solution to known problems or limitations of the current grant program. Examples may include: · Design a process to accommodate individuals or 'emerging' groups who do not have non profit status or formal boards of directors as currently required to receive annual operating grants. · Expand the minor sport touring grant to include arts and cultural individuals, organizations and for profit businesses. · Include organizational planning studies as an eligible item within operating budgets. · Add administration support to provide greater capacity to analysis of the business and financial status of organizations; apply the cost of this administration against the annual operating grants budget. OPTION #2: Summary Statement · For the calendar year of 2008 and for one (1) year only, guarantee and pre-commit grant funds for our successful 2007 Annual Operating and Minor Sports recipients for their 2008 operating year. The allocation of these funds would equal their awarded 2007 grant plus an increase of 20/0 for inflation, in 2008. · Pause the Annual Operating Grant Program for 2008 and respond to any brand new grant requests by utilizing the existing General Provisional grant process. Require organizations who may request to move from General Provision into the 2008 Annual Operating Grant program to stay in the General Provision stream for one more year. · Bring forward to Council's attention a list of any organization currently in either the Annual Operating Grant Program or Minor Sports Grants Program who has a unique or special multi year financial agreement already approved for 2008 by Council. Confirm the agreement and accommodate these arrangements as their status precedes the approval of Option #2. · Pause the current 'appeal' process and establish criteria to respond to 'emergency' requests; the definition and criteria for the 'emergency' to be approved by Council, in advance; · Require all successful 2007 annual operating and minor sports groups to submit a detailed cover letter with financial statements and audits, the letter to be within the format of the Corporation, advising of any 'significant' change they anticipate in 2008; the definition and criteria for the 'significant' to be approved by Council, in advance. CSD-07-044 4 In Option #2 for the 2008 cycle only, there would be no grant application process for Annual Operating grants and Minor Sports groups for 2008 and therefore, no new groups would be added to the Annual Operating program. Those who wished to be added as "new" would be required to seek funding through the Provisional Grant program for one more year. OPTION #3: Summary Statement: Proceed with the 'status quo' and process 2008 annual operating and minor sports grants as per the previous year with funding allocated for staff administration charged to the grant budget. Discussion The CIS Working Team developed, analyzed and discussed the three options. A detailed summary evaluating these options is found in Attachment A. The following is a summary of discussions and observations resulting in staff's recommendation of Option #2 1. Staff are concerned that driving "Quick Fixes" (Option #1) outside of the Community Investment Strategy may result in further community confusion, frustration and distress with the process. The risk inherent to this option lies in the necessity to provide solid assurances that the chosen Quick Fixes are timely; that they do not foster greater instability within the community; and, that they compliment the long term solutions arising from the CIS. Staff advise that in trying to balance the desire to "fix" the program, we may in fact lay a path that needs to be undone, at a later time. For example, there is little capacity in CSD to provide the level of analytical review to meet our standards and the expectation of our Council and residents. However, staff foresee that if we introduce additional staff resources as a 'quick fix' to increase our capacity to provide oversight and analysis, that staff, in turn, will require significant changes to the current grant application form in order to retrieve the necessary information from the applicants. This is a quick fix. Yet, we expect that within the year, the Community Investment Strategy will identify the deliverables required of the applicants and thus, yet another new application form will be required to detail the performance measurements needed to be tracked and submitted to the City as per the application. Therefore, to change the application form and begin analysis now, only to later in 2008 make another significant change to the application form for the 2009 grant run, will have a significant impact on our community groups. 2. Council and staff are attentive to the constraints and demands on our volunteers, many of whom either serve on City sub committees or on Boards of Directors for community organizations. Volunteers commit time especially during the grant application, review process with staff and again, during Council deliberations. As well, our local Boards provide direction for the allocation of their respective paid staff, who are charged to write and respond to the requirements of the CSD's grant processes. There are challenges affecting the expenditure of limited human resources and it is fair to suggest that all those involved in the grant process seek the most effective and efficient use of their finite resources. CSD-07-044 5 While continuing for another year as Status Quo (Option #3) may appear on the surface to be a safe approach there is risk attached. Staff predicts that another year of the status quo will further increase the community's criticism and fatigue when weighing the benefits of 'familiarity' against the strain on resources. It is further acknowledged that the Status Quo neither addresses gaps in the current system nor corrects symptoms of a declining morale amongst a selection of our community grant review volunteers. 3. Council asked for a 'go forward' position that benefits our community groups while ensuring the best use of our city resources. Option #2 effectively provides an incremental increase in financial stability for the majority of our annual grant and minor sports groups during a time period when volunteer community resources, city staff and Council will be re- focusing their energy on participating in the development of the Community Investment Strategy and review of the grant program. Summary of Observations and Proposed Next Steps In recommending Option #2 staff valued the following assurances: · That at the current level of analysis, oversight and approval has been achieved for the successful annual operating groups as per 2007: those who now receive a grant have been screened by their community peers and reviewed and approved by Council. · New requests to fund emerging ideas or projects will continue to move forward through a public review by Council as per the existing provisional grant program. This program has the criteria that can provide flexibility for both the community and Council. · A one year only guarantee of funding, offered and confirmed in mid 2007 as a budget pre- commitment for 2008 provides current annual operating and minor sports grant recipients with a new benefit of confirmed multi year funding which will assist in their organizational planning over eighteen months rather than the traditional twelve. As per next steps, if Council approves Option #2 in principle, staff will further detail the interim policy, procedures and financial requirements of the option within 6 weeks and bring this information forward prior to summer recess. Some approaches to the interim policy are outlined below, in anticipation of implementation questions: · With reoard to oroanizations with unique or specific multi year financial arranoements already pre-committed by Council: staff would propose that these agreements supersede Option #2. Therefore, staff proposes to compile and verify these arrangements with Council and seek a motion to separately pre-commit the finances for these arrangements in 2008, at committee in June, 2007. · With reoard to monitorino 'ouaranteed' oroups: staff propose that each group will be required to submit an "Annual Summary" letter advising of any significant changes they anticipate in 2008. This would be in addition to the required financial statements or audits and the current statistical data we have required in the past. For example, we would ask organizations to speak to their financial year end and identify any % amounts deemed by CSD-07-044 6 Council as 'significant'. Staff would review and consult with the group. If something fell outside Council's criteria and if it wasn't deemed reasonable under staff review, staff would highlight this information to Council. Staff suggests that this letter would include comment on any "significant" changes to their financial position, governance, programs and services and facility. Staff proposes to establish with Council the definition and criteria related to clarify the term "significant.' · With reoard to manaoino "emeroency" reouests in the context of pausino the appeal process: In the proposed one year pausing of the traditional appeal process, staff acknowledge that there may be an 'emergency' situation that befalls an organization (i.e. ROOF) who will seek Council assistance. Therefore, staff proposes to establish with Council, the definition and criteria of "emergency" and proceed to vet any requests for Council's consideration. These situations are clearly viewed as true 'emergencies' and therefore, not appeals. FINANCIAL IMPLICATIONS: No financial implications are anticipated at this time. Upon direction by Council to detail Option #2's interim policy and definitions and procedures, financial implications will be reviewed and vetted through the Finance Department and referred to Council for consideration before the summer recess. COMMUNICATIONS: The Community Investment Strategy has been discussed internally with members of the Finance Division, Chief Administrative Officer's Office, Community Services staff and members of the Economic Development Division and CMT. Community Services staff have met repeatedly with representatives from the community's foundations, private and municipal partners. Specific to the Options detailed in this report, staff have had limited communications with stakeholders. With Council direction, staff proposes to work with the Council's Advisory Committees to assist in detailing the definitions of "significant" as it relates to monitoring organizations and 'emergency' as it relates to matters that should come forward to Council outside of the paused appeal process. This feedback will assist staff in framing their interim policies for Council's review. Further community communications are to be determined as part of the implementation of the Community Investment Strategy project. Ann Pappert General Manager, Community Services Department Community Investment Strategy: Transition Options (April 20, 2007) No. Option Pros Cons 1 Staff to develop and implement quick fixes specific to . Phase in 'known" or auaranteed auick . Chanaes ar the 2008 annual operating and minor sport grant fixes - if the quick fixes are those that to applicant: processes beginning June/July 2007 and charge back we know will be implemented as part of implement c the administration costs of the grants process to the the CIS, this can be considered a grants, and grant budget. "phase in" year process for . Phased approach - short term (quick applicants a fixes) and long term (CIS development) . Gamble - he solutions fixes are thE . Pilot proiects floated with Council and be acceptat the community on an interim basis . Perception ( . Demonstrates proaress in movina without com strateay forward while addressing some it to them, n existing concerns, concurrent with the . Quick fixes: strategy development groups' con . Still allows for public/political review, unSI enaaaement in the process . Administrati will require ( 2 For the calendar year of 2008 and for one year only, . Re-focused community, staff and . Community guarantee and pre-commit grant funds for our Council time on participating in the CIS horizon ma) successful 2007 Annual Operating and Minor Sports strategy, rather than working on grants - car recipients for their 2008 operating year. The allocation application process, committees, etc. process of these funds would equal their awarded 2007 grant . Guaranteed fundina for current groups . No appeal r: plus an increase of 2% for inflation, in 2008. - less work for those already in the respond to ' Pause the Annual Operating Grant Program for 2008 system . Perception 1 and respond to any new requests by utilizing the . Politically neutral by removing appeal they will rec existing General Provisional grant process. Require process but no appe organizations who may request to move from General . Reduce risk of Committees: no annual to request a Provision into the 2008 Annual Operating Grant grant review committee required (saves be a difficul1 program to stay in the General Provision stream for volunteers from ACAC, KY AC and the commur one more year. MACKS approximately 15 to 20 hours) . Specific aro Bring forward to Council's attention a list of any . Pre-plannina - current grant recipients "arranaeme organization currently in either the Annual Operating will know how much grant funding they supersede t Grant Program or Minor Sports Grants Program who will receive early in the process - will . Does not ac has a unique or special multi year financial agreement allow them to plan ahead with allocated system for ( already approved for 2008 by Council. Confirm the amount . Removes 2( agreement and accommodate these arrangements as process on I their status precedes the approval of Option #2. in house) Pause the current 'appeal' process and establish criteria to respond to 'emergency' requests; the definition and criteria for the 'emergency' to be approved by Council, in advance; No. Option Pros Cons Require all successful 2007 annual operating and minor sports groups to submit a detailed cover letter with financial statements and audits, the letter to be within the format of the Corporation, advising of any 'significant' change they anticipate in 2008; the definition and criteria for the 'significant' to be approved by Council, in advance 3 Proceed with the 'status quo' and process 2008 annual operating and minor sports grants as per the previous year with funding allocated for staff administration charged to the grant budget. · Consistency: CIS strategy underway · and we are not confusing groups by changing the process this year and then potentially again for 2009 grant funding · Safe althouah difficult process · Appeal process - political and · community options · Groups are familiar with the process, though some may not like it · · Groups who may feel the system is not "broken" will have a comfort level for · another year · Council is in on the decision makina · process . Open to crit organizatior committee r not moved f strategy Direction: w CMT want tl g rant proce~ Does not ac system Does not ac concerns Grant revie~ basically a f autonomy/d Perceived ir addressed