REPORT TO

MAYOR AND COUNCIL

PRESENTED: JUNE 22, 2009 - SPECIAL MEETING REPORT: 09-94

FROM: RECREATION, CULTURE, AND PARKS DIVISION FILE: 1850-01
SUBJECT: LANGLEY CARE SOCIETY GRANT REQUEST – FOLLOW UP

RECOMMENDATION(S):
That Council approve a grant of $33,000 per year over three years to the Langley Care Society
and fund the 2009 contribution by a combination of $10,000 from the 2009 Community Grants
budget and $23,000 from Council contingency; and further

That Council increase the base budget for Community Grants for 2010 and 2011 by $33,000 to
fund the contributions in these subsequent budget years.

EXECUTIVE SUMMARY:
On May 25, 2009, staff provided Council with a report for information that provided Council with
requested background report pertaining to the Langley Care Society capital grant request,
including information regarding Capital Improvement Grant policy and other examples of
Council consideration for financial support outside the scope of the Township’s grant policies.

This report was referred to staff to obtain additional relevant information including:
(1) amount in Council Contingency Fund;
(2) the Society’s business plan as to how to reach goal(s);
(3) explanation from the Province as to why they will not fund from existing health programs;
(4) explanation as to whether gaming grant funds are available;
(5) meeting between Mayor and MLAs as to options;
and to report back to Council.

Staff have secured information requested and are reporting back with this information and a
recommendation and financial plan to support this request with a grant of $33,000 per year for
the next three years. Combined with the recently approved $7,500 Capital Improvement Grant,
this would bring the Township contribution to this project to a committed $106,500 over the
three year period from 2009-2011.

PURPOSE:
To provide Council with requested additional information pertaining to the Langley Care
Foundation capital grant request and to recommend an additional grant commitment and
financial plan for this project over a three year period from 2009-2011.
LANGLEY CARE SOCIETY GRANT REQUEST – FOLLOW UP
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BACKGROUND/HISTORY:
On May 4, 2009 during its Special Council Meeting, Council deferred a motion that the
Township of Langley commit to a grant to the Langley Care Society of $50,000 a year for a
period of 20 years and asked that it be reviewed under the Capital Improvement Grant policy
framework.

On May 25, 2009, staff provided Council with a report for information that provided Council with
a requested background report pertaining to the Langley Care Society capital grant request,
including information regarding Capital Improvement Grant policy and other examples of
Council consideration for financial support outside the scope of the Township’s grant policies.
This information report is attached for Council’s reference as Attachment A.

Council discussion on May 25, 2009 resulted in a referral to staff to obtain additional information
including:

(1) amount in Council Contingency;

(2) the Society’s business plan as to how to reach goal(s);
(3) explanation from the Province as to why they will not fund from existing health
programs;
(4) explanation as to whether gaming grant funds are available;
(5) communications between Mayor and MLAs as to the options; and report back to
Council.

DISCUSSION/ANALYSIS:
Staff have sought to gather additional information as requested:

(1) Council Contingency

As of June 16th, Council has $80,000 available in Council Contingency.

(2) Society’s Business Plan

The Society has provided a package of information that describes the capital and
operating requirements of the expansion project. Included in this package is a
Budget Analysis prepared by the Society’s financial consultant Andrew Butler.

Also included in this information is a single page roll-up of the Society’s operating
budget that shows the income and expenses of the organization after construction is
complete.

This information has been included in the June 18, 2009 Distribution to Council for
reference.

(3) Provincial Funding of Capital Expansion through existing health programs.

Also included in the June 18, 2009 Distribution to Council package are the minutes of
several meetings of the Joint Initiative Committee: a committee comprised of BC
Housing, Fraser Health Authority and Langley Care Society. At several points during
this process, Fraser Health noted that there were no capital funds available for the
project.
LANGLEY CARE SOCIETY GRANT REQUEST – FOLLOW UP
Page 3 . . .
Discussions continue between Society representatives and those Provincial
ministries responsible for housing and health care. Langley Lodge provides both
housing and health care services for seniors but does not seem to “fit” the criteria of
either ministry for their capital requirements, nor do they have sufficient neighbouring
partners to be considered under a “campus of care” model. Langley Care Society
has referred to this as a “contradiction.”

The Operating Budget plan provided identifies the annual expected operating grant
from Fraser Health Authority as $6,589,058.

(4) Gaming Funds

The Society has made application under the category of Major Capital Grant for
$100,000. The application was initially denied but the Society has formally asked for
reconsideration.

(5) Communications between Mayor and MLAs

The Mayor’s office is attempting to arrange communications with Langley MLAs

regarding Provincial capital support of the fund raising efforts of the Langley Care
Society. We have been advised the province does not supply the form of funding
requested. Representatives of Langley Care Society have offered to accompany
Mayor Green to any scheduled meetings with Provincial representatives.

The fund raising goals of the Society are ambitious. With over $28 M required for the
capital expansion of Langley Lodge, all available options continue to be pursued by the Society.
Their goal is to reduce the size of the mortgage debt they will ultimately need to carry in their
operating budget. They believe that the quality of care they provide the residents of tomorrow
will be enhanced by any reduction in debt servicing they are able to achieve through their fund
raising efforts.

Included under E.1 Correspondence in the June 22 Special Meeting agenda package is a one
page letter addressed to Mayor and Council dated June 9, 2009 from Terry Metcalfe, Co-Chair.
This letter summarizes the appeal being made by Langley Care Society. The letter provides
further insight into the funding contradiction that the Society is experiencing in their discussions
with the Provincial Government. The letter reminds Council of their request that “perhaps
Council would consider a grant for an initial 5 years and after that time be subject to a review for
continuation”.

Staff’s recommendation is for an initial three year commitment. Council may consider leaving
the door open for the Society to request such continuation after this initial three year term is
complete.

Applicable Policies:

As described in the May 25, 2009 background report under the heading of:

Langley Child Development Centre / Langley Seniors Resource Centre

On April 3, 2006 Council passed the following resolutions in consideration of requests by the
Child Development Centre and Langley Seniors Resource Centre.
LANGLEY CARE SOCIETY GRANT REQUEST – FOLLOW UP
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That Council revise the Capital Grant Criteria to include funding for regional and national
fund-raising non-profit organizations based on start-up costs for locating within the
Township; then on maintenance of existing facilities; and finally on equipment utilized in
its facility. The funding to be limited to:

• Surplus funds available within the grant budget;

• The sharing ratio to be 3:1;
• With a maximum contribution to be $33,000; and
• The organization must demonstrate that all other funding sources have been
exhausted; and further

That Council approve grants of $33,000 to the Langley Child Development Centre and
$5,933 to the Langley Seniors Resource Centre with funds from the current Budget and
for this year only, the balance of $15,200 from Council Contingency.

Staff feel that this policy can guide Council’s response to this request by the Langley Care
Society. By providing a maximum contribution of $33,000 in each of the 2009, 2010, 2011
budget years, in addition to the $7,500 Capital Improvement Grant that was recently provided,
Council’s commitment to this project could total $106,500 over the three year period.

With Council’s direction, staff will proceed to provide immediate payment to the Langley Care
Society for the 2009 commitment of $33,000. Council Contingency will fund $23,000 and the
remaining $10,000 will be drawn from the 2009 community grants budget. Going forward, a
$33,000 one-time provision will be included in the 2010 and 2011 community capital grants
budget. These additional encumbrances will be paid out with other community grant recipients
during these budget years.

Respectfully submitted,

David Leavers
DIRECTOR
for
RECREATION, CULTURE, AND PARKS

This report has been prepared in consultation with the following listed departments.

CONCURRENCES
Division Name
FINANCE DIVISION D. SPARKS

ATTACHMENT A