15. Festival franco-ontarien request for emergency funding

DEMANDE DE FONDS D’URGENCE POUR LE FESTIVAL FRANCO-ONTARIEN

COMMITTEE RECOMMENDATIONS

That Council:

1. Approve a one-time grant in the amount of $50,000 for the newly-incorporated Festival franco-ontarien (2006) Inc., allocated from the City-Wide Capital Reserve Fund, to be used as emergency funding for the festival operation in 2006;

2. Direct the Festival franco-ontarien (2006) Inc. organization to develop and provide to the City of Ottawa a long-term financial sustainability plan by December 2006 for staff review and approval; and

3. Direct staff to monitor the implementation of this long-term financial sustainability plan.

RECOMMENDATIONS DU COMITÉ

Que le Conseil :

1. autorise le Fonds de réserve pour immobilisations de la Ville à verser une subvention unique d’urgence de 50 000 $ au Festival franco-ontarien nouvellement incorporé pour financer les activités de 2006;

2. demande au Festival franco-ontarien (2006) Inc. d’élaborer un plan de viabilité financière à long terme et de le présenter à la Ville d’Ottawa d’ici décembre 2006 à des fins d’examen et d’approbation par le personnel;

3. demande au personnel de surveiller la mise en œuvre de ce plan de viabilité financière à long terme.

DOCUMENTATION

1. Community and Protective Services, Deputy City Manager’s report dated
30 March 2006 (ACS2006-CPS-CSF-0006).

2. An Extract of Draft Minute, 04 April 2006, will be distributed prior to Council’s meeting of 12 April 2006.

Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

30 March 2006 / le 30 mars 2006

Submitted by/Soumis par : Steve Kanellakos, Deputy City Manager/Directeur municipal adjoint,

Community and Protective Services/Services communautaires et de protection

Contact Person/Personne ressource : Colleen Hendrick, Director

Cultural Services and Community Funding/Services culturels et financement communautaire

(613) 580-2424 x24366, colleen.hendrick@ottawa.ca

City-Wide/Portée générale

Ref N°: ACS2006-CPS-CSF-0006

SUBJECT:	festival franco-ontarien request for emergency funding
OBJET :	DEMANDE DE FONDS D’URGENCE POUR LE FESTIVAL FRANCO-ONTARIEN

REPORT RECOMMENDATIONS

That the Corporate Services and Economic Development Committee recommend that Council:

3. Direct staff to monitor the implementation of this long-term financial sustainability plan.

RECOMMANDATIONS DU RAPPORT

Que le Comité des services organisationnels et du développement économique (CSODE) recommande que le Conseil :

3. demande au personnel de surveiller la mise en œuvre de ce plan de viabilité financière à long terme.

BACKGROUND

Ottawa's Festival franco-ontarien (FFO) celebrated its 30th anniversary in 2005 as a major, local, festival offering quality, multidisciplinary Franco-Ontarian cultural programming to Ottawa residents and tourists in June. Local, national and international professional francophone artists are presented, and special initiatives are implemented to showcase younger and emerging artists. On average, the Festival has attracted 15,000 festival-goers annually and 200 volunteers per year have generously donated time and services to the event.

In the late summer of 2005, the Board of Directors of the Festival franco-ontarien discovered that $380,000 was missing from its bank account. Of this total, $280,000 was owed to creditors. In January 2006, Festival franco-ontarien (1994) Inc. officially declared bankruptcy, and began legal action against Cobalt Events, the private firm that had been contracted to manage the 2005 festival. Legal action is ongoing.

In the fall of 2005, a new Festival franco-ontarien committee with new membership was formed to re-establish the annual festival in Ottawa. This committee applied for federal non-profit incorporation status on January 31, 2006; and received notice of registration on March 13, 2006.

Partnership Program for Festivals, Fairs and Special Events

On the December 5, 2005 deadline date, the new Festival franco-ontarien committee submitted an application to the City's Partnership Program for Festivals, Fairs and Special Events to be considered for 2006 municipal funding.

The Partnership Program for Festivals, Fairs and Special Events was approved by City Council in December 2002. Objectives of the Partnership Program are to support major, local festivals and fairs that:

· present the distinct, diverse and vibrant character of Ottawa to local residents and tourists;

· offer programming that is of high merit and quality; and

· enhance local quality of life and contribute to Ottawa's overall economic health.

Applicants to the Program are evaluated through a nationally recognized peer assessment process that uses festival, fair and event experts as jurors to assess and make funding recommendations. As is best practice across the country, strict conflict of interest and confidentiality guidelines apply. In addition, a rigorous reporting process is in place for all successful applicants. Failure to provide the required reporting to the City results in ineligibility for subsequent municipal funding.

Following peer review, the 2005 Festival franco-ontarien was awarded operating funding in the amount of $69,000 (7% of FFO's total operating revenue).

The Festival, Fair and Event Partnership Program includes Council-approved eligibility guidelines. In order to be eligible to apply, a festival or fair organization must:

a) have non-profit incorporation status;

b) occur within the City limits but have city-wide appeal;

c) be held on an annual or biennial basis;

d) last from two days to one month;

e) have been in existence for at least two years;

f) have a publicly-accountable structure with an active Board;

g) report a minimum gross budget of $30,000 with a diversified revenue base; and

h) have submitted a full report on the previous year's municipal grant, including audited financial statements.

2006 Funding Application from Festival franco-ontarien

Following the December 5, 2005 deadline, Cultural Services staff reviewed all applications, including the application from the new Festival Franco-ontarien committee, to determine eligibility. Organizations must meet all City eligibility requirements before their funding requests can be considered through the peer-assessment process.

A letter was sent to the Festival Franco-ontarien (2006) Inc. on January 19, 2006, requesting missing application information by February 1, 2006. Some documents were received but not all. Staff also requested advice from Legal Services in regard to the FFO application. Legal Services advised that the Festival franco-ontarien funding application could not be considered within the Festivals, Fairs and Special Events Program for the following reasons:

(1) It was not complete.

(2) A 2005 report and audited statement were not provided.

(3) The organization could not demonstrate that it had existed for more than two years.

(4) The organization could not demonstrate organizational nor financial stability.

In accordance with the Council-approved funding program, staff officially notified the new festival committee on March 3, 2006 that its application was ineligible for 2006.

On March 23, 2006, Councillor Bédard provided notice to Council that he would be submitting a motion (Appendix A) requesting that $50,000 be provided to the newly established organization in order to ensure that the Festival franco-ontarien could occur in 2006.

DISCUSSION

In November 2005, a core group of committed individuals took the first steps to assure the rebirth of the Festival franco-ontarien and its 2006 operation. Since this time, these individuals have created the base for a new infrastructure for the festival. Their accomplishments to date include:

successful registration of a new, non-profit organization under the Canada Corporations Act with Industry Canada;
creation of a new eight-member Festival franco-ontarien board of directors (Appendix B);
identification of the firm, “Groupe Simoncic, Gagnon & Chevrier” as the expert artistic and general management team for the 2006 Festival (Appendix B);
discussion and negotiation with former Festival franco-ontarien public funders to ensure that government support can be realized for 2006; and
confirmation of ongoing, grassroots community support for the Festival franco-ontarien.

The proposed 2006 Festival franco-ontarien will take place from June 16^th to 18^th at Ottawa City Hall’s Festival Plaza. The main stage will feature well-known, professional francophone artists from Ontario, Quebec, Canada and overseas. Two smaller stages will present emerging francophone music and dance, storytelling and children’s entertainment. In addition, onsite animation will include street and circus performers. The 5^th anniversary of the Jeux de la Francophonie, held in Ottawa-Gatineau in 2001, will also be celebrated thematically.

In past years, the Festival franco-ontarien’s total operating revenue has been sourced primarily from various government funding programs, corporate sponsorship, and earned revenue. The 2006 Festival projects a total budget of $598,000.

The proposed 2006 revenue sources are broken down in Festival franco-ontarien (2006) Inc. budget documents as follows:

Government $279,000 (47%)

Corporate Sponsorships $105,000 (17%)

Earned Revenue $ 94,000 (16%)

Foundations $ 90,000 (15%)

Fundraising $ 30,000 ( 5%)

$598,000 (100%)

Projected government revenue includes funding from Canadian Heritage ($125,000), Province of Ontario ($75,000), Province of Québec ($10,000), and the City of Ottawa ($69,000). On March 31, 2006, the Province of Ontario confirmed seed funding in the amount of $50,000 for the newly established organization. Negotiation and discussion with all other potential funding partners is ongoing.

A $50,000 emergency grant from the City would represent a municipal contribution of 8% of the festival’s proposed total operating revenue. Cultural, social, direct and indirect economic impacts emanating from the 2006 festival will benefit all Ottawa residents, and the City as a whole.

It is recommended that the new Festival franco-ontarien (2006) Inc. be directed to develop, with a recognized financial specialist, a longer-term financial sustainability plan that will help the Festival move towards ongoing financial stability and health. This plan should be submitted by the end of December 2006 to the City’s Cultural Services and Community Funding Branch for review and approval.

Approval and ongoing monitoring of the plan by City staff will help to move the Festival franco-ontarien (2006) Inc. towards eligibility for municipal funding from the Council-approved Partnership Program for Festivals, Fairs and Special Events.

CONSULTATION

There has been no public consultation on this report. Consultation with the Festival franco-ontarien (2006) Inc. is ongoing.

FINANCIAL IMPLICATIONS

Finance has verified that the former Festival franco-ontarien organization, now bankrupt, had an outstanding debt of $2,345 from the 2005 event for security at Lansdowne Park. Due to this outstanding arrears, the City has placed a block on any future payments to the organization. In addition, all future City services would have had to be paid for in advance.

For 2006, there is no current budget identified to fund the emergency grant request. Subject to Council approval, one-time funding from the City-Wide Capital Reserve Fund is recommended to address this requirement.

SUPPORTING DOCUMENTATION

Appendix A - Motion from Councillor Bédard, seconded by Councillor Monette regarding One-Time Emergency Municipal Funding for Festival franco-ontarien (2006) Inc.

Appendix B - Festival franco-ontarien (2006) Inc. Board of Directors and Management Team

DISPOSITION

If emergency funding is approved, the Cultural Services and Community Funding Branch will attach a related Terms and Conditions document to the Festival franco-ontarien (2006) Inc. grant. This document will set out the City’s standard terms and conditions for municipal grants and will also include any terms particular to this report that are intended to promote fiscal responsibility and sustainability in the longer term.

APPENDIX A

	City Council and Standing Committee Motion Conseil et comités permanents Motion
	Moved by/ Motion de:		Councillor Georges Bedard	Seconded by/ Appuyée par :	Councillor Bob Monette
RE:		Festival franco-ontarien

WHEREAS the Franco-ontarian festival has existed for over 30 years;

AND WHEREAS the Franco-ontarian festival constitutes and important venue for the Ottawa community, most notably its francophone community;

AND WHEREAS the City has financially supported the Franco-ontarian festival since its inception;

AND WHEREAS the company conducting the festival’s activities declared bankruptcy in 2005 with an impending loss to the festival of $380,000 and caused it to declare bankruptcy as a result of the firm’s loss;

AND WHEREAS as a result of that bankruptcy, the newly formed Franco-ontarian festival could not meet the City’s eligibility criteria for festival funding;

AND WHEREAS the community wishes to maintain the momentum towards the rebirth of the festival

AND WHEREAS the City wants to ensure the survival of the event

BE IT RESOLVED:

That the City provide one-time emergency-funding in the amount of 50, 000$ to the festival from the City wide Reserve Fund for operation of the Franco-ontarian festival in 2006

APPENDIX B

FESTIVAL FRANCO-ONTARIEN (2006) INC.

BOARD OF DIRECTORS

President

Graham Fox*

· Vice-President, Public Policy Forum

· Previous employment in management capacity with ‘Centre KTA pour la collaboration gouvernementale’ and ‘L’Institut de recherché en politiques publiques’

· Former Political Adviser to the Honourable Jean Charest

· Former Chief of Staff to the Very Honourable Joe Clark

· Baccalaureate in History (Queen’s) and Masters in Political Science (London School of Economics)

· Member of Montfort Hospital Board of Directors

Secretary

Anne-Kateri Foley*

· Currently on maternity leave

· Employee of the Federal Public Service since 2000 in Official Languages (Canadian Heritage, Sport Canada, 2010 Vancouver Winter Olympics and Paralympics)

· Former employment with ‘Leroux et Associés’ in communication, project management and Director of Operations for various projects in Europe, Latin America and the National Capital Region

· Baccalaureate of Social Sciences with Specialization in Leisure Services (University of Ottawa)

Treasurer

Gilles Verret

· Directeur des Relations fédérales, provinciales et territoriales at Service Canada, since February 2006

· Employed in Ministry of Intergovernmental and International Relations in New Brunswick, 2002 to 2006

· Political adviser, communications and government relations consultant

· Involved with City of Ottawa and City of Montreal Transition Boards

· Former President, ‘Cercle canadien d’Ottawa’ (1999-2000)

· Former Vice-President, Ottawa Boys and Girls Club (1999-2004)

Members

Sébastien Lorquet

Lawyer, Heenan Blaikie, Ottawa