Memorandum of understanding with service club expired in December, 2024
TEESWATER – While South Bruce Council did eventually decide to resurface the Formosa Lions Club Park Playground in Formosa as the current covering did not meet the standards necessary, the timing of the request left some council members questioning the actions of the Formosa Lions.
The municipally-owned park, which, up until the end of last year, was under the control and care of the Lions, was in need of resurfacing according to Chief Administrative Officer Leanne Martin. She said a member of the Lions brought that to her attention and, after investigation, she verified it needed work.
Through that investigation, however, she found that the Memorandum of Understanding (MOU) between the municipality and the Formosa Lions Club that saw the park, as well as other facilities, fall to the care of the club had expired at the end of December 2024. That MOU outlined that the Lions would both care for and benefit from, in terms of rental income, the park, the local campground and the community centre.
As a result of the expired agreement, the municipally-owned park was again the responsibility of the municipality, and Martin sourced a company that would provide resurfacing material and apply it for approximately $5,000. As this was not a budgeted expense, she suggested taking it from the parkland levy reserve fund which has $72,000.
Martin also stated that, in 2023, then-Manager of Recreation and Facilities Shawnette Crouse had suggested resurfacing all the parks, however budget constraints reduced that project to only two parks.
Deputy Mayor Nigel van Dyk said the timing of the request was “interesting”, and that the Lions benefitted from rentals for camping or use of the park but were now not contributing to its maintenance and upkeep.
Martin confirmed the Lions did receive the revenue from the rentals; however, she didn’t know exactly how much of a financial impact that had.
“The agreement does indicate that they would provide maintenance of facilities and buildings,” she said.
Martin went on to say that a new MOU would make clear for both parties where those expenses would fall. She also noted, later in the meeting, that council and staff had been working on the MOU for some time, with Coun. Mike Niesen adding it had been close to two years. That MOU was in draft format and had been presented to the Lions, Martin said.
The opportunity to pursue a cost-sharing arrangement was brought up by van Dyk, who said it could be done prior to the MOU negotiations, since the park needed to be attended to immediately as it could be a liability in its current state.
Coun. Jeff Goetz agreed, and asked why the park hasn’t been shut down since the municipality is now in charge of what could be a problem area.
“If it’s not safe, it’s not safe,” he said, indicating that shutting it down might encourage the Lions Club to work the municipality to get the park re-opened. “I think someone was playing some games here because now we’re stuck with this $5,000 bill.”
Mayor Goetz said he didn’t disagree, and said council had already faced criticism as a result of unpopular decisions made during the budget process, so having to work on this was not ideal.
He went on to ask Martin how other parks that were under similar agreements were handled. Martin said she didn’t have that information immediately available but would look into it.
Getting the park into immediate working order was van Dyk’s suggestion, and that, if the Lions wanted to continue benefiting from the use and rental of facilities, the municipality could consider putting reimbursement requirements into the next MOU with the organization.
Coun. Mike McDonagh asked why the MOU had any kind of expiry date to begin with. He said that having a three- or five-year review made sense, but that the document should be in perpetuity until one group sought to end it. Coun Mark Ireland agreed, and Mayor Goetz said he also felt that, especially with the Lions running the camping grounds, it made sense to not have any kind of expiry time.
Mayor Goetz then explained that reviewing existing MOUs was under consideration when Crouse left the municipality, and that, going forward, staff would meet with all those clubs and, in the process of reviewing the budget and the MOUs, any other situations like this could be caught. He also said he was the first to credit volunteers and community groups for the work they do in supporting the community, however, after current budget issues, spending money in this situation was untenable for the council.
After more discussion, van Dyk and Niesen moved to have the project proceed, which council voted in favour of.
