TAMRMS#: B06
10.1
title
Request for Reconsideration of SAIL Home Proposal (Friends Café)
Notice given by: Councillor Joly
label
PROPOSED MOTION(S):
recommendation
That Administration offer space for nominal value at a year-round City-owned facility to the St. Albert Assisted Independent Living Home Foundation (SAIL Home), with the option for a seasonal facility if preferred by SAIL Home, for the purpose of operating a food service establishment which complies with provincial regulation and operates within the City’s hours of service, and that SAIL Home be exempt from the Community Capital Grant application timeline requirements in order to enable SAIL Home to apply for grant funding for this food service establishment on an as-needed basis.
body
ADMINISTRATION’S UNDERSTANDING OF THE INTENT OF THE MOTION
If this motion passes, Administration will work to secure a space for St. Albert Assisted Independent Living Home Foundation (SAIL Home) which complies with provincial regulations and City hours of service for a food service establishment, and SAIL Home will have an exemption to application timelines for Community Capital Grant program application.
PURPOSE OF REPORT
The purpose of this report is to present a motion for which Councillor Joly gave notice on June 18, 2024.
BACKGROUND AND DISCUSSION
Administration recognizes that there are multiple paths, opportunities, and challenges associated with the proposed motion. To effectively address these opportunities and balance associated challenges, Administration has identified several paths for Council’s consideration and direction:
1. Direct administration to work with SAIL Home Foundation to validate support, sustainability, and risk mitigation. This would involve confirming requirements, identifying potential locations, and returning to Council with more details including more clearly more defined financial impacts such as, capital costs, human resources costs, lost revenue from alternate sources and increased maintenance costs.
2. Direct Administration to revert the method of food service delivery at Fountain Park Recreation Centre from vending machines back to direct provision. This direction would then provide a space for SAIL Home to lease for a nominal fee and develop the Friends’ Café. This would require Council to approve the funding required to bring the space up to AHS safety standards in addition to the reduction in revenue in order to implement this service.
3. Without a framework that prioritizes social impact through social procurement or social enterprise, we currently do not actively seek out non-profits for available food and beverage service opportunities. Council could direct Administration to invite SAIL Home, and other non-profits, to participate in future RFP processes to access a nominal-lease for the purpose of operating a food and beverage service, when a location for this service becomes available.
Background
It is understood that SAIL Home, a local not for profit organization, has approached Council with the concept to operate as a food service operator in a City facility. The SAIL Home proposal dated April 11, 2024, highlighted that the Friends’ Cafe would provide a place of employment and life skills training for people with disabilities in St. Albert. Administration has spoken with the St. Albert Assisted Independent Home Foundation (SAIL) to extend an opportunity for further discussion with Recreation and Parks and Community Services to see how the City could assist with supporting their goals and vision. Further meetings to discuss plans and options were declined by the organization.
Currently, Administration requires additional information about the SAIL Home organization, including their mandate, goals, objectives, business model, and programs to adequately assess their request against City policies and procedures and thus cannot make an informed recommendation to Council at this time. Administration confirms this organization became incorporated as a registered not-for-profit on December 7, 2021.
Considerations
There are numerous complexities when the City enters into a lease agreement with a lessee for a market value, nominal or non-market lease. These processes usually take six months to a year to work through expectations, negotiations through to a completed agreement. The success of the lease partnership is critically dependent on this process, and there are numerous considerations to explore, particularly as this proposal represents a new service delivery model for the City. One of the key goals in establishing lease terms in a civic framework is to complete this work in a consistent, transparent and equitable manner.
In the past, non-profit organizations in St. Albert have identified the limited availability of affordable spaces for programming and operations is a challenge. Numerous non-profits would benefit from accessing an opportunity similar to the one SAIL Home has proposed.
Administration has identified several considerations that would be assessed in developing a robust recommendation to Council on the proposal by SAIL Home.
Corporate policies and procedures exist that align to securing lease partners for facility operations:
• City Owned Building Lease Rates (C-CAO-16) policy is in place that outlines eligibility and responsibilities of nominal lease partners.
• Purchasing Administrative Directive (A-PUR-01) is in place to identify principles for conducting a competitive process for procurement that is equitable and transparent to all organizations and businesses.
• Service and Service Levels inventory - (C-CG-06) provides an overview of services provided to the community by the City of St. Albert.
Existing lease space in city facilities have developed lease processes and alignment to a business model of operations:
• The delivery of food services in City facilities is customer focused and follows a business model which includes revenue contributing positively to the overall financial health of the facility. The business compliments offered in facilities is intended to improve overall user experience. Food operators in City facilities operate predominantly independently of the City in their leased space.
• Food establishments must adhere to strict guidelines for food preparation and handling as directed by Alberta Health Services (AHS). Facilities are inspected for safety code compliance. Insurance and WCB would also be a requirement.
• To meet the request of SAIL Home a new food service lease location and related capital costs would need to be affirmed.
• In alignment with standard procurement processes and policy, equal opportunity is provided through a Request for Proposal (RFP) to select a lessee. It is a competitive process to ensure that the City not only obtains the best value but also that all interested parties can participate in the opportunity.
• Selecting a lessee outside of the RFP process results in the City being misaligned to the City Owned Building Lease Rate Policy and to various trade agreements, which require a competitive process.
The Community Capital Grant program is available for eligible community capital projects with program and eligibility requirements established:
• This grant program has a spring application intake followed by continuous intake annually (when funding has not been fully allocated) for up to 1/3 funding of the project cost.
• Eligible applicants are registered not for profit organizations in good standing with Corporate Registries for five years. This requirement evaluates stability and sustainability of the organization; a component required for successful completion of projects.
• Eligible organizations are those whose primary mandate is to provide sports, recreation, arts, culture, family, or community services.
SAIL Home Proposal
In contrast to organizations with established social procurement frameworks, the proposal under review highlights the City’s lack of such a framework. The absence of such a framework limits Administration’s ability to effectively measure community impact and social value, potentially compounding inequities by offering one organization an opportunity not available to others.
Social Procurement Overview Status and Timing
Administration continues to advance this work, and more is needed to fully implement Social Procurement. Research tells us that it takes time to implement social procurement. Over time, small incremental steps will take us closer to fully realizing the benefits of social procurement.
What is Social Procurement?
Simply put, social procurement is leveraging a social value from existing procurement to make intentional positive contributions to both the local economy and the overall vibrancy of the community.
Social procurement seeks to further leverage tax dollars to achieve broad societal goals, increasing equality and diversity, while contributing to improved community well-being through the blending of social, environmental, and economic considerations in the procurement practices and processes.
What is Social Enterprise?
Social enterprises are businesses that sell goods and services, embed a social, cultural, or environmental purpose into the business, and reinvest the majority of profits or surplus into their purpose. SAIL Home proposes providing employment and life skills training for people with disabilities in St. Albert
Current Progress with Social Procurement:
Social Procurement project initiated in 2021 with the objective to research and identify options for consideration to develop a social procurement policy and best practices for the City.
Recommendations for 2026:
• Refine and implement the Sustainable Procurement Directive.
• Refine and implement the Social Procurement Guide.
• Define service levels and request the necessary operating budget.
• Develop a comprehensive Social Procurement Framework.
• Support the development of a long-term approach, including providing the necessary resources to sustain it.
Community Social Needs Assessment
The rate of disability is increasing in St. Albert. Based on the findings from the Community Social Needs Assessment Fact Sheet on Persons Living with Disabilities (Attachment 1), persons with disabilities are one of the groups identified as being underserved within St. Albert.
The Family and Community Support Services Accountability Framework identifies barriers to full time employment as a prevention priority. The Community Social Needs Roadmap and subsequent implementation will explore and prioritize ways to support Persons living with a disability in St. Albert within the FCSS mandate.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
Additional discussion with SAIL Home Foundation required.
IMPACTS OF RECOMMENDATION(S)
Financial:
If option 1 is recommended: Administration would consider options for location for this organization, at which time financial impacts would be clearly defined, including capital costs, human resources costs, lost revenue from alternate sources and increased maintenance costs.
If option 2 is recommended: Administration will revert the method of food service delivery at Fountain Park Recreation Centre from vending machines back to direct provision at a net cost of $111,000 which includes one time capital funding of $100,000 and an annual revenue loss of $11,000 due to a nominal lease rate.
Compliance & Legal:
If passed, the motion and associated work would contravene Council Policy C-CAO-16 City Owned Building Lease Rates, the Purchasing Policy Administrative Directive, and various trade agreements (including the New West Partnership Trade Agreement and the Canadian Free Trade Agreement). There are various risks associated with non-compliance, including risk of judicial review of administration’s decision-making by an applicant, as well as bid protest mechanisms that may be exercised pursuant to the various trade agreements.
Program or Service:
Social Procurement and Social Enterprise are not part of the current City Service Level Inventory. However, the program intersects with several existing services across numerous departments.
Organizational:
Social procurement, including Social Enterprise, could have an enriching community impact. Initiatives like this provide an enriching experience for participants and customers alike. The specific nature of ongoing support from the City is currently unknown. It is unclear whether the support would come from Community Services, due to the social profit nature of the organization and identified community benefit to an underserved population, or from Recreation and Parks, as it may involve operating a business in their facility. Currently, this model does not fit within existing capacities and services, necessitating the refinement of frameworks and support mechanisms.
Risks
1. Equity and Fairness:
a. Perceived favoritism and dissatisfaction among other non-profit organizations by the exclusion of other potential applications.
b. Without a transparent application and selection process, the decision -making process may be perceived to lack transparency.
c. Inequitable resource distribution. Resources, like space, or access to revenue opportunities, that could have greater community impact.
2. Sustainability Concerns
a. Inadequate support systems and process for effective management by Administration.
b. Ability and capacity of the organization to successfully manage and operate a food services establishment have not been reviewed or confirmed.
3. Community Impact:
a. Without developed criteria, assessment of potential impact is incomplete.
b. Synergies with other St. Albert organizations may be overlooked.
c. Social enterprises often create jobs, particularly for underserved groups, which can stimulate economic growth and reduce unemployment rates.
d. By addressing social issues such as unemployment, homelessness, or mental health, social enterprises can reduce the financial burden on public services.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
N/A
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
N/A
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
N/A
body
Report Date: July 16, 2024
Author: Anna Royer, Cameron Campbell, Debi Skoye, Elizabeth Wilkie
Department: Community Services, Recreation and Parks, Financial and Strategic Services
Department Director: Elizabeth Wilkie, Daniele Podlubny, Anne Victoor
Managing Director: Diane Enger
Chief Administrative Officer: William Fletcher