Community League License Agreement.

Recommendation:
That the following report be received for information.

Report Summary

This is a status report with respect to the Tripartite License Agreement as requested by the Committee.

Previous Council/Committee Action

  • At the October 21, 2000, Community Services Committee meeting the following motion was passed:

That the revised due date of November 6, 2000 be approved.

  • At the May 15, 2000 Community Services Committee passed the following motion:

That the Administration prepare a status update with respect to the community league license agreement for the October 2, 2000 Community Services Committee meeting.

  • At the October 19, 1999 City Council meeting the following motion was passed:
  1. That approval be given to enter into the standard Licence Agreement with the Edmonton Federation of Community Leagues (EFCL) and individual community leagues, plus any leagues formed during the term of the Licence Agreement. The terms and conditions (to be as per Attachment 1 of the September 28, 1999 Community Services Department report).
  2. That the Licence Agreement be acceptable in form to Corporate Services Department (Law Branch), and in content to the General Manager of the Community Services Department.

Report

  • The Department received direction from City Council on October 19, 1999 to work with the Edmonton Federation of Community Leagues (EFCL) to execute the signing of the Tripartite License Agreement with the 132 Community Leagues.
  • Sixteen Community Leagues have formed the Site Agreement Review Committee specifically to review the Council approved Tripartite License Agreement and to propose an alternative Lease Agreement.
  • The Community Services Department (the Department) convened a meeting on June 21, 2000 with representatives the Site Agreement Review Committee. The meeting took place to clarify some of the concerns their Committee had with the Council-approved Tripartite License Agreement (Attachment 1). During the meeting, the Department and the Law Branch made it very clear to this group of 16 Community Leagues that the Department is not empowered to negotiate a new Lease Agreement with any Community League or group of leagues. At the conclusion of the meeting the Department, in concert with the Law Branch, agreed to draft a set of guidelines related to the Agreement. The guidelines are to serve the purpose of clarifying the City’s position regarding the procedural elements of the Tripartite License Agreement. The Department, Law Branch and the EFCL, with input from the Site Review Agreement Committee, have developed these guidelines that will become an addendum to the Agreement. All of the 132 Community League Presidents will receive a copy of these guidelines (Attachment 2).
  • The Site Agreement Review Committee met on July 19, 2000 to discuss what was presented at the June 21 meeting at City Hall.
  • Members of the Site Agreement Review Committee, the Department, the Law Branch and Councillors Noce, Bolstad and Rosenberger met again on September 11, 2000 to review the City’s position relative to some of the clauses within the Agreement (Attachment 3).
  • Members of the Site Agreement Review Committee met on September 21, 2000 to discuss what was presented at the September 11, 2000 meeting.
  • Councillor Noce sent a letter dated October 9, 2000 to Dwayne Robertson, Chair of the Site Agreement Review Committee basically stating that he no longer sees a need for another meeting and that the proposed guidelines will be sent to the Site Agreement Review Committee in the near future.
  • There are 142 Community Leagues within the City of Edmonton. Ten Community Leagues do not have facilities on City Land; therefore it is not necessary for them to sign the Tripartite License Agreement.
  • One hundred and two Community Leagues have signed the Tripartite License Agreement as of October 11, 2000. Therefore, there are 30 Community Leagues that have not yet signed the Agreement. Sixteen have formed the Site Agreement Review Committee, 14 other Community Leagues have not signed the Tripartite License Agreement for a number of reasons. The proposed guidelines will help to answer some of their remaining questions. It is anticipated the Agreement will be executed before the end of the year.

Background Information Attached

  1. Community League Standard License Meeting Minutes
  2. Tripartite License Agreement Guidelines
  3. September 11, 2000 Meeting Minutes

Background Information Available on Request

  1. The Tripartite License Agreement

(Page 1 of 2)

Attachment 1

Community League Standard License Meeting Minutes

MINUTES

COMMUNITY LEAGUE STANDARD LICENSE MEETING

JUNE 21, 2000

CITY HALL, RIVER VALLEY ROOM

Attendees: Dwayne Robertson (Lauderdale), Alana Prockiw (Belvedere), Jim Acton (Area Council 1), Vene Locke (Calder Seniors), Rick Ricketts (Calder Seniors), Frank Atkinson (Ottewell), Bob Hutchison (Ottewell), Mary-Lou Veeken (Kenilworth), Will Moore (Kenilworth), Bill Maxim (Killarney), Mary Shalapay (Lauderdale), Norm Brenneis (Wellington), Alan Richards (Kilkenny), Gordon Harris (Area Council 17), Jeff Muiselaar (Evansdale), Lionel Stenberg (McLeod), Lynn Andrews (Athlone), Brenda Skayman (Athlone), Bob Gerlock (Gold Bar), Bill Slawuta (Lago Lindo), Shelley Tupper (Kensington), Murray Tairney (Northmount), Linda Crosby (Idylwylde), Bill Hetner (Idylwylde), Kathy Barnhart (City Wide Services, Branch Manager), Don Manderscheid (Q.C. Law Branch), Brent McFarlane (Community Grants Co-ordinator).

During the course of the meeting, the following was discussed:

  1. At the outset of the meeting, members of the Site Review Committee voiced their concern as to the intention of the City with respect to the meeting’s agenda. Of primary concern to such members, was whether or not the City was willing to negotiate a new Tripartite Agreement based upon the Lease Agreement as provided by the Site Review Committee to the City. Kathy Barnhart replied that the Standard Tripartite License Agreement had been approved by City Council for execution by all Community Leagues occupying City property. As such, the Community Services Department had no mandate to negotiate a new Tripartite Agreement or re-negotiate the present Tripartite License Agreement.
  2. A concern was raised by certain members of the Site Review Committee with respect to the inability of the Community Leagues to obtain bank financing due to the License as opposed to a Lease. Don Manderscheid replied that it has and remains the policy of the City not to permit Community Leagues to use the previous Lease and now the License, for the purposes of obtaining mortgage financing. Don Manderscheid further advised that in his experience, he has not seen any example where a Community League was unable to obtain bank financing due to its inability to pledge their past Lease as security for mortgage financing.
  3. The role of the EFCL with respect to the Tripartite License Agreement was discussed. In particular, certain members of the Site Review Committee were concerned that because the EFCL does not provide anything to the Leagues by way of assistance or benefit, why should the EFCL be a party to the Tripartite License Agreement. In reply, Kathy Barnhart and Don Manderscheid advised that a previous motion of City Council supported the EFCL as “the representative and co-ordinating body of Edmonton’s Community Leagues”. Accordingly, given Council’s previous motion, the Administration lacked the authority to eliminate the EFCL from the Tripartite License Agreement. Don Manderscheid further advised that the involvement of the EFCL in the operation of the Tripartite License Agreement as compared to the previous Lease Agreement had been diminished in certain aspects, i.e. insurance proceeds. Lastly, Don Manderscheid advised that pursuant to Alberta Regulation 281/98, it is specifically stated in Section 12(c) that in order to qualify for exemption from taxation, the property must be held by and used in connection with a community association that is a member of the EFCL.
  4. There was a discussion concerning the License/Lease issue. In this respect, Don Manderscheid advised that pursuant to the Tripartite License Agreement, the City has the right on reasonable notice to use the League facilities. Don Manderscheid further advised that the right of the City to use the League facilities was in the previous Lease Agreement and as such, the previous Lease Agreement although called a “lease” was in fact a “license”. Don Manderscheid further advised that in order for those Community Leagues, which occupy municipal reserve to obtain a Lease, the MR designation would have to be removed. In certain cases, this would involve a subdivision, which in turn could result in the payment of reserves by the City. Lastly, Don Manderscheid advised that the provision granting the City the right to use the Community League facilities would remain and as such, even if called a “lease”, the document would in fact be a “license”.
  5. The matter of the implementation of the Tripartite License Agreement was discussed and in particular the concerns of the members of the Site Review Committee as to the obtaining of the City’s consent under the Tripartite License Agreement or as to the use of the Community League facilities by the City. In reply, Don Manderscheid advised that although the Tripartite License Agreement could not be amended, he was amenable to recommending to the Community Services Department that a set of “Guidelines” be compiled for the purposes of the implementation of the Tripartite License Agreement. Don Manderscheid further advised that the Guidelines would operate within the confines of the Tripartite License Agreement and would serve the purpose of dealing with the specifics of the document which are not explicitly stated in the Tripartite License Agreement.
  6. The meeting concluded with the members of the Site Review Committee advising that they would convene a meeting with their members to discuss what had been discussed at this meeting and would be replying to the Administration.

Attachment 1 - Page 1 of 3

Attachment 2

Tripartite License Agreement Guidelines

COMMUNITY LEAGUE TRI-PARTY LICENSE GUIDELINES

PURPOSE:The purpose of these Guidelines is to clarify the manner in which the Community League License (“License”) is to be administered by the Community Services Department, (“Department”).

GUIDELINES:

1.TERM OF LICENSE

Section 1:Pursuant to Section 1, the League shall not pledge the License as security or encumber, mortgage, charge or lien the title to the Site.

Implementation:Although the City will not permit the League to pledge the License as security or encumber, mortgage, charge or lien the title to the Site, the City acknowledges that the League may during the term of the License, enter into financial arrangements with lending institutions for purposes related to the League’s operation of the Site. In furtherance of this acknowledgement, should the League provide the City with the name, address and contact person of their financial institution, the City will at the request of the League, commit to sending to the League’s financial institution copies of all notices of default or termination as sent by the City to the League.

2.USE OF THE SITE

Section 9:Pursuant to Section 9, the City has granted to the League the non-exclusive use and possession of the Site. The reason for this non-exclusivity is to permit the City to hold, upon reasonable notice, in the League's facilities on the Site such programs as the City may operate and maintain for the benefit of residents of the City of Edmonton.

Implementation:The City shall send the required notice in writing to the League prior to the desired date of use. If the proposed use date falls between the months of May and September, 90 days notice is required, and for all other portions of the year a 30 day notice is required. The notice shall contain full particulars of the proposed use. The League must agree to the proposed use and relevant terms prior to the City’s use. It is acknowledged by the City that the City’s primary use of the Site under Section 9 will be for purposes such as: election offices/polling station, town hall meetings and (emergency) situations.

Section 11:Pursuant to Section 11, the League is required to plan and develop its activities in cooperation with the Department.

Implementation:The League shall not be required to provide the Department with an annual program summary as to the programs to be offered by the League on the Site in any given year. However, the League must give due consideration to any suggestions made by the Department as to League offered programs.

3.CONSTRUCTION AND FACILITY OPERATION

Section 13:Pursuant to Section 13, the League will not add, permit to be added, or remove from the Site new, extended or added facilities (including but not limited to landscaping) without first obtaining the written approval of the General Manager.

Implementation:Approval from the General Manager under Section 13, will only be required in cases where the proposed work does not fall under the category of the day-to-day maintenance or repair of the Site (i.e. replacement of the Community League Building). As well, in cases of emergency, the League shall not be required to obtain the approval from the Department. However, the League shall, in cases of emergency, within 10 days after the emergency, provide the General Manager with a report outlining the emergency and the nature of the work under Section 13.

Section 17:Pursuant to Section 17, the League and the City will periodically meet to discuss the activities conducted on the Site.

Implementation:It is proposed that these meetings between the League Executive and the Community Recreation Coordinator take place at least annually. The Department will only request the involvement of the Federation if there are concerns by the Department that the League is, or proposes to carry out activities on the Site which would be in violation of the terms of the License. The League shall be free to request the involvement of the Federation at any time.

4.HERBICIDES, PESTICIDES AND HAZARDOUS SUBSTANCES

Section 23:Pursuant to Section 23, the League will not store, bring onto the Site, or allow the application of any herbicides or pesticides to the Site, without the express written permission of the General Manager. The City reserves the right to prohibit the application of any or all herbicides or pesticides to the Site at its discretion at any time during the term of this License.

Implementation:The League shall not be required to obtain the General Manager’s approval for herbicides or pesticides which are brought onto the Site for the purpose of the maintenance of those portions of the Site that are the responsibility of the League (i.e. flower beds, shrubs etc.) Approval from the General Manager under Section 23 will only be required in cases where the quantity or type of proposed herbicide or pesticide will, or has been deemed by the General Manager to be hazardous to the environment and to the citizens of the City of Edmonton (i.e. a 5 gallon drum of DDT). The City shall annually send to the League a list of those herbicides or pesticides which are prohibited by the City to be used on the Site.

Section 24:Pursuant to Section 24, the League will not store or bring onto the Site any hazardous substances without the written permission of the General Manager.

Implementation:The League shall not be required to obtain the General Manager’s approval for hazardous substances which are brought onto the Site for the purpose of the day-to-day maintenance of the Site, that are the responsibility of the League (i.e. gasoline for snow removal equipment). Approval from the General Manager under Section 24 will only be required in cases where the quantity or type of proposed hazardous substance unreasonably exceeds the requirements of normal use (i.e. a 45 gallon drum of gasoline).

5.ASSIGNMENT

Section 32:Pursuant to Section 32, the League will not assign the License, or grant a sub-license of the Site, or any part thereof, without first obtaining written permission from the General Manager, which permission may be withheld if the purposes of the proposed assignment, or sub-license are contrary to the objectives of the League, the Federation or the City.

Implementation:The League shall not be required to obtain the General Manager’s approval for sub-licenses which have a term One (1) year or less, provided that such sub-licenses do not result in a total assignment of the Site and the License or are contrary to the objectives of the League or the Federation.

6.DEFAULT AND TERMINATION

Section 35:Pursuant to Section 35, in the event of any complaint being made to the City by anyone residing in the vicinity of the Site with regard to any matters referred to in Article 12 of the License (i.e. excessive noise), the City may make due inquiry concerning such complaint. In the event that the complaint is not settled, the General Manager and the Chairman of the Federation shall settle the matter in any manner they deem necessary and the League shall comply with any direction given in that regard.