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fondation de la cour des arts d’Ottawa – financement de 2012
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1. Approve the 2012 Arts Service Agreement with the Ottawa Arts Court Foundation, to help finance operations and meet immediate cash flow requirements; and
2. Approve maintaining the current level of funding of up to $183,023 to the Ottawa Arts Court Foundation for 2012 plus 2% inflationary costs, to be disbursed as described in this report.
RECOMMANDATIONS DU COMITÉ
2. approuve de maintenir le niveau de financement actuel de la Fondation de la Cour des arts, pour un maximum de 183 023 $ en 2012 plus 2 % pour les coûts de l’inflation qui seront déboursés tel qu’il est décrit dans le présent rapport.
1. Deputy City Manager, City Operations, report dated 29 November 2011 (ACS2011-COS-PRC-0013).
Report to/Rapport au:
Finance and Economic Development Committee
Comité des finances et du développement économique
and Council / et au Conseil
29 November 2011 / le 29 novembre 2011
Submitted by/Soumis par: Steve Kanellakos, Deputy City Manager/Directeur municipal adjoint, City Operations/Opérations municipales
Contact Person/Personne ressource : Dan Chenier, General Manager
Parks, Recreation and Cultural Services/Services des parcs, du loisir et de la culture
(613) 580-2424 x24295, Dan.Chenier@Ottawa.ca
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SUBJECT:
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OBJET :
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fondation de la cour des arts d’Ottawa – financement de 2012
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1. Approve the 2012 Arts Service Agreement with the Ottawa Arts Court Foundation, to help finance operations and meet immediate cash flow requirements; and
2. Approve maintaining the current level of funding of up to $183,023 to the Ottawa Arts Court Foundation for 2012 plus 2% inflationary costs, to be disbursed as described in this report.
2. d’approuver de maintenir le niveau de financement actuel de la Fondation de la Cour des arts, pour un maximum de 183 023 $ en 2012 plus 2 % pour les coûts de l’inflation qui seront déboursés tel qu’il est décrit dans le présent rapport.
Background
The Arts Court facility has been a vital part of the Ottawa community since it first opened in 1988. It is home to the largest and most innovative creative group of Ottawa’s arts producers and presenters and houses 25 independent professional arts organizations.
The facility operating model is shared between the City and local arts partners working together to provide program and services. The facility is city-owned and since 1993 the day to day operations have been managed by the City. Through an Arts Service Agreement, the Ottawa Arts Court Foundation (OACF) manages the 130-seat black box theatre, library and court room spaces and is one of seven arts partners working closely with the City on the Arts Court Redevelopment project.
Funding to cultural organizations, including OACF, is allocated based on the Council approved Cultural Funding Frameworks (approved Dec. 2002), Arts Investment Strategy, Festivals Sustainability and Museum Sustainability Plan. The current level of funding to OACF was determined through a peer assessment process as part of the 2011 application process and represents a fair value on the services they offer as determined by two independent peer assessors.
The purpose of this report is to seek Council’s approval of the 2012 Arts Service Agreement at the 2011 rate to a maximum of $183,023 (plus a 2% inflationary increase) with $40,000 of that amount expedited to be released as soon as practicable to help the OACF to meet immediate cash flow requirements.
DISCUSSION
The City’s support to the OACF of $183,023 has grown 100% since 2004 and is a significant contribution of close to 50% to their overall budget.
In October 2011, staff was informed that the OACF had to defer its major fundraising event due to a scheduling conflict and that they required immediate financial support from the City to address cash flow shortfalls and that they could not meet payroll.
The organization has indicated that the current level of funding plus a 2% inflationary increase, with an immediate advance of $40,000 is required to allow them to move from a state of financial difficulty into a recovery mode. The OACF has submitted a preliminary spending plan within the 2012 allocation recommended in this report (including the impact of the $40,000 advance which is a draw on the 2012 amount).
The OACF will be required to submit by December 31, 2011 detailed information respecting service levels, individual staffing costs, a deficit-reduction plan, fundraising strategy, recovery strategy and other financial details requested by staff.
Cash flow projections and detailed budget must be provided by the organization on a monthly basis. Staff will continue to monitor the cash flow and financial statements for this organization with the 2012 funding of $183,023 (plus a 2% inflationary increase) to be provided in three instalments to minimize risk implications:
1) $40,000 advance as soon as possible and no later than the 1st week of January 2012;
2) Mid February 2012 - $50,000; and
3) Remainder of funding in early May 2012 based on obtaining revenue targets of $20K for the Law and Disorder event fundraiser. The OACF will have to provide a full report on funds raised seven days after all fundraising events.
The OACF will be required to submit a formal application for 2013 Annual Operating funding in accordance with the City’s Cultural Funding Policy.
There are no implications specfic to the rural area associated with this report.
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Comments by the Ward Councillor
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LEGAL IMPLICATIONS
There are no legal impediments to approving the recommendations in this report. Legal Services will assist staff in finalizing the 2012 Arts Service Agreement as directed by Council.
There are risk implications. These risks have been identified and explained in the report and are being management by the appropriate staff.
There are no financial implications. Sufficient funds are available in the PRCS 2012 operating budget.
Technology Implications
There are no technical implications associated with this report.
City Strategic Plan
The Arts Court Redevelopment Project is identified as a Corporate Strategic Priority (HC4) as per the Term of Council Priorities approved by Council at its meeting of July 13, 2011.
This is a City-building project led by the City’s Real Estate Partnership Development Office and Cultural Services. The City has the necessary expertise and has engaged architects and theatre consultants to work with key arts partners on the preliminary design options. The OACF will continue to be one of the seven arts partners involved closely with the City on this project.
Parks, Recreation and Cultural Services staff will action any direction received as part of consideration of this report. If funding is approved, the Cultural Services Branch will attach a related Terms and Conditions document to the Arts Service Agreement Annual Operating Funding 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.