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1. $75,000 LOAN
GUARANTEE TO THE OTTAWA SCHOOL OF SPEECH AND DRAMA GARANTIE DE PRÊT DE
75 000 $ À L’OTTAWA
SCHOOL OF SPEECH AND DRAMA |
COMMITTEE RECOMMENDATION
That Council receive
this report for information.
Recommandation DU Comité
Que le Conseil prenne connaissance
de ce rapport.
Documentation
1.
Councillor
Holmes report dated 20 May 2011 (ACS2011-CMR-CPS-0009).
2. Extract
of Draft Minutes, 19 May 2011.
Report to / Rapport au:
Council / Conseil
24 May 2011 / le 24 mai 2011
Coordonnateur de comité
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City-wide/À l’échelle de la ville |
Ref N°: ACS2011-CMR-CPS-0009 |
SUBJECT: $75,000 LOAN GUARANTEE TO THE OTTAWA SCHOOL
OF SPEECH AND DRAMA
OBJET: GARANTIE DE PRÊT DE
75 000 $ À L’OTTAWA SCHOOL OF SPEECH AND DRAMA
That Council receive this report for
information.
Que le Conseil prenne connaissance de ce
rapport.
The Community and Protective
Services Committee, at its meeting of 19 May 2011, approved the following motion added to the agenda pursuant
to 84.(3) of the Procedure
By-law (being By-law no. 2006-462).
That a report
come forward to Council on May 25th, 2011 regarding the Ottawa School of Speech
and Drama. That the report address the request for a $75,000 loan guarantee to
be paid back over 5 years.
CONSULTATION
City Operations
Staff has met with the Ottawa School of Speech and Drama (OSSD) and reviewed its financial situation.
Staff has determined that the OSSD is a well run organization which has increased its student registrations each year since 2005 and experienced operating surpluses since 2008 which have been offset by capital debt repayments and significant production expenses incurred in 2010.
Staff has assessed that the OSSD does require a one-time infusion of funding in 2011 to prevent closure of the school.
Because the long term prospects of the school are very good, with increasing enrolment and new leadership on the Board of Directors, staff has proposed to provide an advance of $40,000 to be provided to the OSSD in 2011 to be deducted from its annual funding allocation over the next three (3) years, specifically:
·
$10,000 in 2012
·
$15,000 in 2013
·
$15,000 in 2014
Accordingly, the OSSD will receive the same overall envelope of funding 2011 to 2015 with $40,000 front-ended to 2011. The Ottawa School of Speech and Drama has agreed to the resolution outlined in this report.
FINANCIAL
IMPLICATIONS
Funds are available
in the Parks, Recreation and Culture Department Budget to accommodate the
solution outlined in this report.
Parks, Recreation and Cultural Services staff will action any direction received as part of consideration of this report.
$75,000 LOAN
GUARANTEE TO THE OTTAWA SCHOOL OF SPEECH AND DRAMA
ACS2011-CMR-CPS-0009 CITY-WIDE / À L’ÉCHELLE DE LA
VILLE
MOTION No. CPS 6/2
Moved by D. Holmes
That the Community and Protective
Services Committee approve the addition of this item for consideration by the
Committee at today’s meeting, pursuant to section 84(3) of the Procedure By-Law
(being By-Law 2006-462).
CARRIED
Councillor Holmes gave a brief summary as to why she was introducing this motion and the fact that this important arts organization was in financial difficulties. Steve Kanellakos, Deputy City Manager City Operations stated that the Ottawa School of Speech and Dance receives a grant from the city of $53,000 annually and has been paid some of this for 2011 and the City could advance them the balance and a special emergency loan of $10,000 but that the department has not yet had a chance to review all the facts behind this request.
The Committee heard from the following delegation:
Randy McIntyre,
Chair, OSSD stated that he had resigned as Chair in 2008 and due to this
crisis had recently been renamed chair in April and is making strides to
rectify the problems of the school. This
$75,000 is needed to survive and will be repaid as was a loan they received in
2004.
MOTION
No. CPS 6/3
Moved by D. Holmes
That a report come forward to Council on May 25, 2011 regarding the Ottawa School of Speech and Drama. That the report address the request for a $75,000 loan guarantee to be paid back over 5 years.
CARRIED