Recommendation: Approve Option 3 to discontinue City of Burlington Tag Day program for charitable/non-profit organizations

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1 Page 1 of Report PB Planning and Building Department TO: Development and Infrastructure Committee SUBJECT: Discontinuing Tag Day Program Report Number: PB File Number(s): 49-1 Report Date: February 28, 2013 Ward(s) Affected: All Date to Committee: March 25, 2013 Date to Council: April 8, 2013 Recommendation: Approve Option 3 to discontinue City of Burlington Tag Day program for charitable/non-profit organizations Purpose: Address goal or action in strategic plan Establish new or revised policy or service standard Respond to legislation Respond to staff direction Address other area of responsibility The purpose of this report is to recommend that the City of Burlington discontinue the requirement that charitable/non-profit organizations receive permission from the City to conduct Tag Days. Reference to Strategic Plan: Background: Vibrant Neighbourhoods Prosperity Excellence in Government N/A Excellence in government. The Strategic Plan references annual governance reviews to ensure that government services are subject to a test of necessity and to continuous improvement. Tag Days are events that allow charitable/non-profit organizations to conduct fundraising on private property at various locations throughout the City of Burlington, with permission from the property owner and the City of Burlington. In return for a charitable donation, the donor typically receives a tag or sticker indicating that they have made a contribution. In 1982 Staff Report # was first presented to the Administrative and Finance Committee, recommending the

2 Page 2 of Report PB establishment of a procedure for granting permission from the City for charitable/non-profit organizations to hold tag days in the City. The following recommendation was approved: THAT upon receipt of any request from a charitable, patriotic or religious organization for the holding of a Tag Day(s), the City Clerk and Director of Administrative Services, or such other person as may be designated by the City Clerk and Director of Administrative Services, shall make or cause to be made, any investigation deemed necessary; and that if the investigation does not disclose any reason to believe that the holding of such Tag Day(s) may be in any way adverse to the public interest, the City Clerk and Director of Administrative Services or such other person as may be designated by the City Clerk and Director of Administrative Services, may grant such permission. There is no cost to the charity for requesting permission from the city, but the process entails a great deal of staff time for processing these requests. The diagram on the next page illustrates the process map for a tag day approval, showing the number of steps involved by staff, the applicant and property owners. Over the years that this process has been in place, staff have had no complaints or any instances in which it was necessary to take action of any kind regarding a tag day.

3 Page 3 of Report PB Tag Days Property Owner Community Organization Planning & Building CSR Investigate if Community Organization is eligible for tagging Apply for Tag Day Permit Community Organization is not permitted to Tag in the City of Burlington Determine date availability Do not Tag Date available? Re-apply for another date Approve the date Alternative location an option? tify Community Organization that Tagging is not permitted at this location tify applicant that date is not available Issue permit Requests permission to Tag on private property Permission granted? Tag Issue letter of approval

4 Page 4 of Report PB Discussion: In 2011 a survey was conducted by the Town of Milton of surrounding municipalities to determine the use of Tag Days. The results of this survey confirm that Milton and Burlington were the only remaining municipalities that regulated tag days. Following the survey Milton discontinued its tag day program. Staff from Milton described the transition as positive and seamless. The results of the survey are as follows: Municipality Tag Days Status Milton Still required approval from Town at time of survey Halton Hills Never had tag days program, no plans of having one Hamilton Discontinued tag days in 1993 Mississauga Discontinued tag days in 1997 Oakville Never had a tag days program, no plans of having one In 2012, the licensing staff within the Planning and Building department conducted a survey of all active charitable/non-profit organizations that participate in the Tag Day program in the City of Burlington. Of the twenty-two organizations that were surveyed, eleven responded. Five recommended the program be cancelled and six recommended that the program continue. The survey of tag day participants demonstrated that there are 2 distinct perspectives on the topic. Generally speaking, those in favour of discontinuing the tag day program feel that the process is redundant. Obtaining permission from property owners and the City is duplicating efforts and city staff time could be better utilized elsewhere. On the other hand, those that would prefer to keep the tag day program feel that the current process provides cohesion and structure to the program. The letter of approval provides a formality that the organizations appreciate. In order to qualify to tag in Burlington, the following regulations apply; Only Burlington based charitable, patriotic, or religious organizations are permitted to hold tag days. The City of Burlington limits the number of tag day events within City limits to 2 per day. The City of Burlington limits organizations to 4 tagging events per calendar year. The volume of Tag Day requests has declined over the last few years. Some businesses have placed additional rules to limit tagging, while other businesses have

5 Page 5 of Report PB prohibited Tag Days all together. In 2012, the City of Burlington issued 111 letters of permission; compared to 166 letters of permission in 2011 and 186 in Strategy/Process Staff are proposing that City approvals component of the tag days program be discontinued. Options Considered In considering its strategy, staff considered three options: 1. Proceed as normal. Leave the program as is. 2. Implement a fee structure. Charging a fee (see below Financial Matters) would justify some of the staff time that is dedicated to the Tag Day Program. 3. Discontinue the Tag Day program. This option would align the City of Burlington with neighbouring municipalities and would allow staff to focus on revenue generating and customer focussed initiatives. Tag Days would be managed independently by local business owners. Option 1 is regarded as a costly and time consuming process that involves staff, the applicant and the property owners in an unnecessary process that does not appear to require municipal supervision. Option 2 addresses the issue of recovering the resources needed to operate the program on a fee-for-service basis, but does not address the basic necessity of operating the program. This option is unlikely to be supported by the charitable/nonprofit organizations as it is counterproductive to the purpose of a charitable fund-raising effort. Option 3 simplifies the process, eliminates an unnecessary administrative requirement for charitable organizations and property owners, and eliminates an unnecessary municipal expenditure. Financial Matters: The Tag Day program requires 0.1 dedicated FTE; which equals approximately $7,500 of fully loaded cost. In 2012, there were 111 letters of approval issued by the City of Burlington. In order to achieve cost recovery, City of Burlington would need to charge approximately $68 per event. Total Financial Impact $7,500

6 Page 6 of Report PB Communication Matters: If approved, staff will communicate this change in service through various means including letters to all registered charities, notification on the City s web site, advertising in the local media, and a posting on the Building division service counter. Conclusion: On the basis of the experience to date, staff from the Planning and Building Department concludes that the Tag Day program is no longer required. The process of permitting charitable organizations to solicit donations on private property are best left to the property owners and need not be subject to regulation by the City. Eliminating the City s role would still permit the fundraising opportunities while removing a redundant layer of approval and oversight. Therefore, the recommendation to council is to discontinue the Tag Day program and allow local business owners to regulate the program themselves. This will provide the Planning and Building Department with extra resources to focus on improving customer service and revenue generating initiatives. Respectfully submitted, Steve Babcock Supervisor, Licensing and Permit Administration ext Appendices: A. B. tifications: (after Council decision) Name Mailing or Address

7 Page 7 of Report PB Approvals: *required *Department City Treasurer General Manager City Manager Committee Disposition & Comments Council Disposition & Comments To be completed by the Clerks Department 01-Approved 02-t Approved 03-Amended 04-Referred 06-Received & Filed 07-Withdrawn 01-Approved 02-t Approved 03-Amended 04-Referred 06-Received & Filed 07-Withdrawn