CITY CLERK

Clause embodied in Report No. 3 of the Policy and Finance Committee, as adopted by the Council of the City of Toronto at its meeting held on April 14, 15 and 16, 2003.

6

2003 Caribana Festival (All Wards)

(City Council on April 14, 15 and 16, 2003, amended this Clause to provide that the 2003 funding of the Caribana Festival include clear provisions for the Junior Carnival at Scarborough Malvern.)

The Policy and Finance Committee recommends the adoption of the recommendation of the Economic Development and Parks Committee embodied in the following Communication (March 27, 2003) from the City Clerk:

Recommendation:

The Economic Development and Parks Committee recommended to the Policy and Finance Committee, and Council, the adoption of the report (March 11, 2003) from the Commissioner of Economic Development, Culture and Tourism, subject to amending Recommendation Nos. (1) and (6) by adding thereto the following:

“which includes the Caribana Parade, the King and Queen Event and the two Junior Carnivals.”

Background:

The Economic Development and Parks Committee at its meeting held on March 24, 2003 had before it a report (March 11, 2003) from the Commissioner of Economic Development, Culture and Tourism, reporting to City Council on the results of the 2002 Caribana Festival and submitting recommendations respecting the "2003 Caribana Festival”.

The following persons appeared before the Economic Development and Parks Committee in connection with foregoing matter:

- Mr. John Kam, President and Chairman, Caribana; - Mr. Dalma Hill, Caribbean Cultural Committee; - Mr. Churchill Piggott, Mas Bands Association; and - Ms. Monica Pollard, Caribbean Cultural Committee.

______Toronto City Council 2 Policy and Finance Committee April 14, 15 and 16, 2003 Report No. 3, Clause No. 6

(Report dated March 11, 2003 addressed to the Economic Development and Parks Committee from the Commissioner of Economic Development, Culture and Tourism)

Purpose:

To report to City Council on the results of the 2002 Caribana Festival and recommend a funding strategy for the 2003 Festival.

Financial Implications and Impact Statement:

Funding is provided in the approved 2003 Consolidated Grants Budget for the Major Cultural Organizations to allow for monthly grant payments to the Caribbean Cultural Committee until such time as the 2003 grant allocation has been approved by Council.

The Chief Financial Officer and Treasurer has reviewed this report and concurs with the Financial Impact Statement.

Recommendations:

It is recommended that:

(1) Council confirm its support for the Caribbean Cultural Committee as the organizer, producer and owner of the Caribana Festival;

(2) Council express its appreciation to the Toronto Mas Bands Association for organizing the 2002 Festival Parade and associated events under difficult circumstances;

(3) Council recognize that the outstanding grant conditions from 1998 through 2002 have been satisfied by the Caribbean Cultural Committee;

(4) the Commissioner of Economic Development, Culture and Tourism be requested to report to the Economic Development and Parks Committee on the grant allocation to the Caribbean Cultural Committee for the 2003 Caribana Festival in the context of the report on the grants to the Major Cultural Organizations;

(5) the Commissioner of Economic Development, Culture and Tourism be authorized to make monthly grant instalment payments to the CCC based on one twelfth of the previous year’s grant amount until such time as the 2003 grant allocation has been determined by Council and with any prior monthly instalments deducted from the 2003 grant payments (2002 grant for Caribana was $356,062.00);

(6) the Commissioner of Economic Development, Culture and Tourism be directed to continue to provide grant funding to the Mas Bands, Steelbands and Calypsonians subject to these groups having an agreement with the Caribbean Cultural Committee confirming their participation in the 2003 Caribana Festival; Toronto City Council 3 Policy and Finance Committee April 14, 15 and 16, 2003 Report No. 3, Clause No. 6

(7) the Commissioner of Economic Development, Culture and Tourism be authorized to pay the Exhibition Place invoice relating to the 2002 Festival Parade and deduct this amount from any 2003 grant payments to the Mas Bands, Steelbands and Calypsonians; and

(8) the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Background:

At its meeting held on February 13, 14 and 15, 2002, City Council re-affirmed its support, in the medium and long-term, for a restructured and revitalized Caribbean Cultural Committee (CCC) as the historical, central organizer, producer and owner of the Caribana Festival. At the same meeting, Council determined an arrangement for the organization of the 2002 Caribana Festival only and directed that the matter be revisited as soon as possible for the 2003 Caribana Festival.

At its meeting held on March 4, 5, 6, 7 and 8, 2002, Council clarified the arrangement for the 2002 Caribana Festival by recognizing the Toronto Mas Bands Association as the lead for the Festival Parade; the King and Queen of the Bands Show; and the Scarborough Junior Carnival. At the same time, Council recognized the Caribbean Cultural Committee as the lead for the Olympic Island Events. At its meeting held on June 18, 19 and 20, 2002, Council approved a grant of $356,062.00 for the 2002 Caribana Festival.

In making its grant to the Caribbean Cultural Committee in 1998 and every year since, Council has included conditions that would need to be met before the CCC could assume full control of the Caribana Festival and its funding. These conditions included the restructuring of the CCC; the employment of professional management for the Festival; accountability through audited financial statements and a plan for deficit reduction.

Comments:

Toronto Mas Bands Association:

The Toronto Mas Bands Association successfully staged the Festival Parade on August 3, 2002 under the name of the Toronto International Carnival. The TMBA also staged the King and Queen Competition on August 1, 2002. These events were professionally managed and met with a positive response from the community. It is recommended that Council express its appreciation to the Toronto Mas Bands Association for organizing the 2002 Festival Parade and associated events under difficult circumstances.

The TMBA has provided Audited Financial Statements for the year ending October 31, 2002. The Statements indicate a small operating deficit of $18,279.00 on total revenues of $963,873.00. The TMBA has demonstrated an ability to manage public funds in a professional and accountable way. The only outstanding item is an unpaid invoice in the amount of $33,437.09 for the use of Exhibition Place during the 2002 Festival Parade. The TMBA has informed staff that it does not have the funds to pay this invoice. City staff have assured Exhibition Place that this issue will be dealt with before arrangements are made for the staging of the 2003 parade. Toronto City Council 4 Policy and Finance Committee April 14, 15 and 16, 2003 Report No. 3, Clause No. 6

Caribbean Cultural Committee:

The Caribbean Cultural Committee successfully staged the Festival events at Olympic Island on August 4, 2002. The CCC has also submitted Audited Financial Statements for the year ending October 31, 2002. The Statements show a small operating surplus of $134.00 on total revenues of $282,765.00. The CCC has demonstrated its ability to manage the Festival events in a professional and accountable way.

Outstanding Grant Conditions:

Since 1998, the City of Toronto and other government funders have included grant conditions for the Caribana Festival that were designed to make the Festival more self-sufficient and sustainable. These conditions included the restructuring of the CCC; the employment of professional management for the Festival; accountability through audited financial statements; and a plan for deficit reduction. In the past year, the Board of the CCC has made steady progress on satisfying these conditions.

Restructuring of the CCC:

At a meeting held on October 5, 2002, the membership of the Caribbean Cultural Committee approved a restructuring plan for the CCC with the support of over 90 per cent of the votes cast. The restructuring calls for the establishment of two operating units for Caribana. The Caribana Festival Business Unit will have a mandate of professionally managing the Festival. The Caribana Arts Foundation will have a mandate for philanthropic activities, education and artistic development programs.

Professional Management:

The restructuring of the CCC calls for the establishment of the Caribana Festival Business Unit. This Unit would be charged with the day-to-day management of the Festival, reporting to the Board of the Caribana Group on policy issues. This structure should empower the professional staff to manage the festival within Board approved boundaries.

Accountability through Audited Statements:

The Caribbean Cultural Committee has provided Audited Financial Statements for the year ending October 31, 2002. The Statements demonstrate that the CCC has the ability to manage public funds in an accountable way.

Deficit Reduction:

The CCC engaged the firm of Wasserman Mathew Limited to manage its debt restructuring plan. Acting as Trustee, Wasserman Mathew Limited issued a proposal to creditors for outstanding debts of approximately $800,00.00. A meeting of the creditors was held on February 28, 2003, and the creditors voted to accept the proposal from the CCC. Subject to court approval, this will allow the CCC to settle these outstanding debts and move forward without an accumulated deficit. Toronto City Council 5 Policy and Finance Committee April 14, 15 and 16, 2003 Report No. 3, Clause No. 6

It is recommended that Council recognize that the outstanding grant conditions from 1998 through 2002 have been satisfied by the Caribbean Cultural Committee.

2003 Caribana Festival:

The CCC has prepared a Business Plan for the staging of the 2003 Caribana Festival. Now that the debt restructuring proposal has been accepted by its creditors the CCC can move forward to implement this plan. With the outstanding grant conditions satisfied, the City can again make grant payments to the CCC. It is recommended that the Commissioner of Economic Development, Culture and Tourism report to the Economic Development and Parks Committee on the grant allocation to the Caribbean Cultural Committee for the 2003 Caribana Festival in the context of the report on the grants to the Major Cultural Organizations.

The City provides monthly grant instalments to the Major Organizations to assist with cash flow. These payments are based on one twelfth of the previous year’s grant amount and is adjusted after council has approved the grant allocation report. The CCC would benefit from assistance with cash flow prior to Council’s consideration of the grant allocation report and it is recommended that the Commissioner of Economic Development, Culture and Tourism be authorized to make monthly grant instalment payments to the CCC until such time as the 2003 grant allocation has been determined by Council.

Direct Payment to the Bands:

In 2001 and 2002, the City paid a portion of the grant for the Caribana Festival directly to the Mas Bands, Steelbands and Calypsonians through the Toronto Mas Bands Association. This method of payment has insured that the performers have received funding in time to prepare their elaborate costumes. The CCC supports the continuation of this practice and it is recommended that the Commissioner of Economic Development, Culture and Tourism be directed to continue to provide grant funding to the Mas Bands, Steelbands and Calypsonians subject to these groups having an agreement with the Caribbean Cultural Committee confirming their participation in the 2003 Caribana Festival.

As stated above, the Toronto Mas Bands Association owes $33,437.09 to Exhibition Place for the use of the grounds during the 2002 Festival. The TMBA has indicated that they are unable to pay this invoice it and it will be difficult for Exhibition Place to make plans for 2003 with this matter outstanding. It is recommended that the Commissioner of Economic Development, Culture and Tourism be authorized to pay the Exhibition Place invoice relating to the 2002 Festival Parade and deduct this amount from any 2003 grant payments to the Mas Bands, Steelbands and Calypsonians.

Conclusion:

Although the 2002 Caribana Festival presented a number of challenges, it continues to be a tremendous event in the City’s summer cultural calendar. In 2003, the restructured Caribbean Cultural Committee will resume its role as organizer of the Festival and will work with its partners, including the Toronto Mas Bands Association, to ensure the future success of Caribana. Toronto City Council 6 Policy and Finance Committee April 14, 15 and 16, 2003 Report No. 3, Clause No. 6

Contact Name:

Ms. Rita Davies, Managing Director, Culture Division, Telephone: (416) 397-5323, Fax: (416) 395-0278; e-mail: [email protected].