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June 13, 2011
CitqoO Executive Committee Meeting Agenda _ Monday, June 13, 2011 DICKERING Council Chambers 7:30 pm Chair: Councillor Pickles (1) Matters for Consideration Pages Delegation Paula Jesty, Deloitte & Touche Re: Report CST 26-11 2010 Year End Audit 1. Director, Corporate Services & Treasurer, Report CST 26-11 1-70 2010 Year End Audit Recommendation 1. That Report CST 26-11 of the Director, Corporate Services & Treasurer be received; 2. That the Year-end Communication Report as submitted by Deloitte & Touche LLP be received for information; and 3. That the 2010 draft Audited Consolidated Financial Statements for the City of Pickering be approved; and, 4. That Deloitte & Touche LLP be reappointed to provide external auditing services to the City of Pickering for a 5 year term. Delegation Terry Dorgan Re: Fair Wage Policy, Report CST 25-11 2. Director, Corporate Services & Treasurer, Report CST 25-11 71-138 Fair Wage Policy Recommendation 1. That Report CST 25-11 of the Director, Corporate Services & Treasurer regarding Fair Wage Policy be received for information; and, Accessible i For information related to accessibility requirements please contact PICKS ~ N ~j Linda Roberts Phone: 905.420.4660 extension 2928 TTY: 905.420.1739 Email: Iroberts(a-)citvofr)ickerina.com eitq o~ Executive Committee Meeting Amt Agenda Monday, June 13, 2011 PICKERING Council Chambers 7:30 pm Chair: Councillor Pickles 2. That Council adopts Recommendation 1 or 2 of Report CS 30-10 of the Director Corporate Services & Treasurer attached hereto. 3. Director, Community Services, Report CS 21-11 139-146 Holy Redeemer Catholic School Traffic Concerns No Stopping By-law, Liverpool Road No Parking By-law. Liverpool Road School Bus Loading Zone by-law, Liverpool Road Amendment to By-law 6604/05 Holy Redeemer Catholic School Crosswalk Relocation, Liverpool Road Recommendation 1. That Report CS 21-11 of the Director, Community Services regarding a proposed amendment to the municipal traffic by-law 6604/05 be received; 2. That the attached draft by-law be enacted to amend Schedule "1" to By-law 6604/05 to provide for the regulation of stopping on highways or parts of highways under the jurisdiction of the Corporation of the City of Pickering; 3. That the attached draft by-law be enacted to amend Schedule "2" to By-law 6604/05 to provide for the regulation of parking on highways or parts of highways under the jurisdiction of the Corporation of the City of Pickering; 4. That the attached draft by-law be enacted to amend Schedule "3" to By-law 6604/05 to provide for the regulation of a school bus loading zone on highways or parts of highways under the jurisdiction of the Corporation of the City of Pickering; and 5. That the crosswalk on Liverpool Road located at the Holy Redeemer Catholic School north driveway be relocated to the south side of Ilona Park Road (north intersection). 4. Director, Community Services, Report CS 22-11 147-154 Tender for Roof Replacement - East Shore Community Centre Tender No. T-11-2011 Recommendation i Citq ao Executive Committee Meeting Agenda Monday, June 13, 2011 PICKER ING Council Chambers 7:30 pm Chair: Councillor Pickles 1. That Report CS 22-11 of the Director, Community Services regarding the Roof Replacement at the East Shore Community Centre be received; 2. That Tender T-11-2011 submitted by Crawford Roofing Corp. at a cost of $291,540.00 (HST included) be accepted; 3. That the total gross project cost of $323,180 (HST included) and a net project cost of $291,034 (net of HST rebate) including the tender amount and other associated costs be approved; 4. That Council authorizes the Director, Corporate Services & Treasurer to finance the projects as follows: a) the sum of $110,000, as provided for in the 2011 approved Capital Budget - Senior Centre, be funded by a transfer from the Federal Gas Tax Grant Reserve Fund; b) the sum of $181,034 from the 2010 approved Capital Budget - Recreation Arenas' Dehumidification System, be reallocated to this project and be funded by a transfer from the Federal Gas Tax Grant Reserve Fund; c) the Director, Corporate Services & Treasurer be authorized to take any actions necessary in order to give effect to the foregoing; and 5. That the appropriate City of Pickering officials be authorized to take necessary action to give effect thereto. 5. Director, Corporate Services & Treasurer, Report CST 23-11 155-160 2011 Annual Repayment Limit for Debt and Financial Obligations I Recommendation That Report CST 23-11 of the Director, Corporate Services & Treasurer regarding the 2011 Annual Repayment Limit for Debt and Financial Obligations be received for information. ;Citq o¢ Executive Committee Meeting 1*, Agenda Monday, June 13, 2011 PI fKERING Council Chambers 7:30 pm Chair: Councillor Pickles 6. Director, Corporate Services & Treasurer, Report CST 24-11 161-169 Development Charges Reserve Fund - Statement of the Treasurer for 2010 Recommendation That Report CST 24-11 of the Director, Corporate Services & Treasurer respecting the Development Charges Reserve Fund be received for information. 7. Director, Corporate Services & Treasurer, Report CST 27-11 170-202 2010 Pre-Audit Balances of Reserves and Reserve Funds Recommendation That Report CST' 27-11 of the Director, Corporate Services & Treasurer be received for information. 8. Director, Corporate Services & Treasurer, Report CST 28-11 203-207 Development Charges -Annual Indexing Recommendation 1. That Report CST 28-11 of the Director, Corporate Services & Treasurer be received; 2. That effective July 1, 2011 as provided for in Section 16 of By-law 6978/09, the Development Charges referred to in Sections 6 and 11 of that By-law be increased by 1 percent; and, 3. That the appropriate officials of the City of Pickering be given authority to give effect thereto. i 9. Director, Corporate Services & Treasurer, Report CST 29-11 208-222 2011/2012 Property and Liability Insurance Renewal Recommendation 1. That Report CST 29-11 of the Director, Corporate Services & Treasurer be received; I Cis o~ Executive Committee Meeting Agenda _ Monday, June 13, 2011 PICKERIN Council Chambers 7:30 pm Chair: Councillor Pickles 2. That the City of Pickering renew its property, liability and other insurance policies through the Frank Cowan Company for the period July 1, 2011 to June 30, 2012 inclusive on terms and conditions acceptable to the Director, Corporate Services & Treasurer; 3. That the Director, Corporate Services & Treasurer, as part of the Risk Management Program, be authorized to continue the Reimbursable Deductible Program through the Insurance Adjuster and the Frank Cowan. Company and further, that the Director be authorized to settle any claims including any adjusting and legal fees where it is in the City's interest to do so; 4. That the Director, Corporate Services & Treasurer be authorized to purchase additional insurance, make changes to deductibles and existing coverages, and alter terms and conditions as becomes desirable or necessary in order to limit potential liability exposure and to protect the assets of the City and it's elected officials and staff; and, 5. That the appropriate officials be authorized to take the necessary actions to give effect thereto. 10. Chief Administrative Officer Report CAO 11-11 223-229 Bingo Licensing Charitable Bingo and Gaming Revitalization Initiative Recommendation 1. That the City of Pickering enter into a contract with the Ontario Lottery and Gaming Corporation (OLGC) for electronic bingo and gaming in order to work with the OLGC, the Charity Organizations and Delta Bingo in a "Bingo Revitalization Program"; and 2. That the Mayor and Clerk be authorized to take the necessary action to give effect thereto. (II) Other Business (III) Adjournment Cif Report To Executive Committee 1 ICKERIly Report Number: CST 26-11 Date: June 13, 2011 01 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2010 Year End Audit Recommendations: 1. That Report CST 26-11 of the Director, Corporate Services & Treasurer be received; 2. That the Year-end Communication Report as submitted by Deloitte & Touche LLP be received for information; and 3. That the 2010 draft Audited Consolidated Financial Statements for the City of. Pickering be approved; and, 4. That Deloitte & Touche LLP be reappointed to provide external auditing services to the City of Pickering for a 5 year term. Executive Summary: Attached to this report is the auditor's Year-end Communication Report and the draft Audited Consolidated Financial Statements for the year ended December 31, 2010. Again this year, the auditor has provided an unqualified opinion on the financial statements which means that the financial statements present fairly, in all material respects, the financial position of the City and its operations, assets and cash flows in accordance with Canadian public sector accounting standards. Staff are pleased to advise that the auditor did not identify any significant deficiencies in the audit to report to Council and therefore the auditor has not issued a management letter. Under the Municipal Act, 2001, Council must appoint an auditor licensed under the Public Accounting Act, 2004 for a period not to exceed five years. The current auditor, Deloitte & Touche was appointed on January 15, 2002 and reappointed in October 2006. As the five year appointment ends with the 2010 year end audit, it is recommended the firm be reappointed. Report CST 26-11 Date: June 13, 2011 2010 Year-End Audit Page 2 02 Financial Implications: The financial results for 2010 were once again favourable. However these results, as in prior years, are primarily a result of one-time occurrences and cannot be relied upon to continue on an annual basis into the future. In regards to the reappointment of the auditors, there will be no additional costs beyond the budgeted amount included in the 2011 Current Budget, as the auditor has indicated they would be willing to hold their fees at the 2010 level for the next three years with an inflationary increase in years 4 and 5. Sustainability Implications: This report does not contain any sustainability implications. Background: The audit of the consolidated financial statements for the year ended December 31, 2010 has been completed. The auditor's Year-end Communication Report is included as Attachment 1. This report, prepared by Deloitte & Touche LLP, summarizes the results of the December 31, 2010 audit and comments on significant matters regarding the audit or other matters they may believe to be of interest to Council. Nothing of significance has been noted. Appendix A of the attachment presents a draft of the independent auditor's report which is attached to the Financial Statements, once approved by Council, and provides the unqualified opinion. On an annual basis, the auditor is required to communicate all relationships between the City and the firm that may impact on their independence to the City. The independence letter included in Appendix B confirms that Deloitte & Touche LLP is independent with respect to the City. It is in draft form as it will be dated once the Consolidated Financial Statements are approved by Council. Appendix C illustrates the draft representation letter which is provided by the City to the auditors. This letter indicates that the Financial Statements are management's responsibility and that management has provided and disclosed all necessary information to ensure the Financial Statements are not materially misstated. This letter will be signed by the Chief Administrative Officer and the Treasurer upon approval of the financial statements by Council. The scope of the audit does not include an in-depth evaluation of all systems or internal controls; however, the auditors may report on matters that come to their attention during the course of their review. No matters came to their attention to report in a management letter and as such one has not been issued. The draft Audited Consolidated Financial Statements are included as Attachment 2. These statements are the responsibility of management and have been prepared by City accounting staff under the direction of the Director, Corporate Services & Treasurer. Deloitte & Touche LLP are responsible to express an opinion on these Consolidated Financial Statements based on its audit. An unqualified opinion has been provided. The Consolidated Financial Statements includes the activities of the City of I Report CST 26-11 Date: June 13, 2011 2010 Year-End Audit Page 3 03 Pickering Public Library Board. The City's investment in Veridian Corporation is accounted for on a modified equity basis, which means the City includes its share of Veridian's income or loss in the Consolidated Financial Statements. This is the second year of reporting on the full accrual basis of accounting as prescribed by the Public Sector Accounting Board (PSAB), which includes reporting tangible capital assets. Tangible capital assets, such as land, building, infrastructure and equipment are now capitalized (recorded) at cost on the Statement of Financial Position (Balance Sheet) and amortized (depreciated) over their estimated useful lives in current operating expenses. Under this method, the Statement of Financial Position now includes tangible capital assets under the non-financial asset section and shows Accumulated Surplus. The Statement of Operations no longer shows capital expenditures but includes those capital budget expenditures, that are-not deemed tangible capital assets, as operating expenses. Statement of Financial Position' Financial assets are those assets which could provide resources to discharge existing liabilities or finance future operations. Net financial assets increased over the prior year which was due to an increase in financial assets of approximately $8.8 million offset by an increase in liabilities of approximately $6.7 million. The increase in financial assets is due to an increase in investments of approximately $8.3 million. Timing of receipt and use of funds, especially when funds are received in the last quarter of the year, will cause the investment balance to change year over year. The following factors contributed to the increased investment balance at the end of the year: debenture proceeds of just over $4 million received in mid October, Federal Gas Tax installment of $1.3 million received in mid November, supplementary tax billing of $1.6 million due in late October and November and an increase in development charges collected of approximately $1.8 million. The increase in liabilities primarily resulted from an increase in Accounts Payable ($1.4M), Deferred Revenue ($2.5M) and Long-term Liabilities ($2.3M). As noted above, debentures were issued in the year causing a net increase in long-term liabilities after principal repayments were made. The deferred revenue balance consists primarily of the Obligatory Reserve Fund amounts such as Development Charges, Parkland Contributions, Federal Gas Tax and Third Party/Developer's Contributions. As mentioned above, the Federal Gas Tax installment received in November and the overall increase in Development Charges collected has contributed to the.increase in deferred revenue. Lastly, the increase of approximately $1.3 million in Accounts Payable balance at year end results from timing of receipt of invoices and processing of payments in addition to an overall increase in accruals from the prior year including an accrual for the refund of Report CST 26-11 Date: June 13, 2011 2010 Year-End Audit Page 4 0 property taxes in the amount of $345,000 for the successful assessment appeals by golf courses. Non-financial assets includes tangible capital assets which is the net book value (cost less accumulated amortization) of the City owned assets including land, .buildings, roads, bridges & sidewalks infrastructure, storm sewer infrastructure, furniture and fixtures, vehicles and equipment. Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. Statement of Operations Revenue reported includes both operating and capital. Therefore, variances between budget to actual may arise due to timing of approval in the capital budget and actual receipt of funds/recognition of revenue. This is clearly illustrated with the Government grants and fees revenue item. This amount includes provincial and federal grant monies for both current and capital budget expenditures. The higher budget figure compared to actual is primarily due to the $8 million of federal and provincial grants assumed in the 2010 Capital Budget for the Frenchman's Bay Entrance construction. This project is only to proceed upon receipt of grant funding which has not occurred. Therefore, the actual revenue is much lower than the budget. The timing of project approval and recognition of revenue also applies to the Other contributions and Development charges earned line items. A number of these projects have not commenced or been completed and therefore the revenue is not recognized until the expenses are incurred. The capital budget expenditures do not show on the Statement of Operations as capital expenditures. For those expenditures that meet the definition of a tangible capital asset (TCA), the cost is reported on the Statement of Financial Position (Balance Sheet). Only a portion of the asset's cost is included as an amortization expense each year over the life of the asset in the operating expenses reported on the Statement of Operations. The amortization expense is included in operating expenses for the asset's respective functional category. For example, amortization on a fire truck is included under the Protection to Persons and Property category. Capital budget expenditures that do not meet the TCA definition are included as operating expenses under the appropriate functional category. The budget figures reported also need to reflect the change in reporting for capital budget expenditures. Note 18 of the City's consolidated financial statements reflects the changes made to the 2010 Council approved budget to put it on a basis consistent with the full accrual basis of accounting which incorporates tangible capital asset reporting. i Report CST 26-11 Date: June 13, 2011 2010 Year-End Audit Page 5 05 Overall, the actual expenses are comparable with the budget with the exception of the Recreation and Cultural Services function. As discussed above, the Frenchman's Bay Entrance construction project was an $8 million project included in the 2010 Capital Budget that has not proceeded. This project does not meet the definition of a City tangible capital asset as it does not appear it will be a City asset for financial reporting purposes, and therefore is included in operating expenses causing the significant variance between budget to actual. Accumulated Surplus The components that make up the Accumulated Surplus are disclosed in Note 12 of the City's consolidated financial statements and are summarized below. It must be emphasized that these amounts are not surplus funds in the traditional sense. The accumulated surplus balance essentially represents the difference between assets and liabilities of the City. What primarily contributes to this balance are the tangible capital assets of approximately $187.7 million and the City's equity in Veridian Corporation of approximately $69.2 million. The accumulated surplus is comprised of the following: Operating fund $ 125,092 Capital fund 10,355,677 Reserves and reserve funds 29,598,670 Equity in Veridian Corporation 69,231,568 Tangible capital assets 187,669,237 Post employment benefits liability (2,703,900) WSIB benefit liabilities (1,672,898) Internal loans (1,123,472) Net long-term liabilities (16,582,742) $274,897,232 Reappointment of Auditors Under section 296 of the Municipal Act, 2001, municipalities are required to appoint an auditor licensed under the Public Accounting Act, 2004 for a period not to exceed five years. At the end of the term the auditors may be reappointed. Deloitte & Touche LLP (D&T) was originally appointed in January 2002 for a five year term and reappointed for an additional five years in 2006. D&T is one of the largest public accounting firms in Canada and provides a wide variety of professional services. in addition to audit services and has vast experience within the municipal sector. These services include advice on management controls, tax matters and Public Sector Accounting Board Standards. The firm's municipal government practice provides a broad range of auditing, accounting and advisory services to a number of Canadian municipalities including 6 of the 8 local municipalities and the Regional Municipality of Durham. Report CST 26-11 Date: June 13, 2011 2010 Year-End Audit Page 6 Initiating a request for proposal (RFP) is not recommended as a significant amount of staff time is required to prepare and evaluate an RFP putting additional demands on already limited staff resources that are involved with a number of other Corporate priorities. Furthermore, a change in the audit firm would necessitate additional staff time and resources in introducing and explaining the City's policies, procedures, systems of controls, financial systems and operations as the firm moves through its learning curve which usually takes two or more audit cycles (years). The services provided by D&T have clearly demonstrated proficiency in the municipal environment and have demonstrated an excellent knowledge of City operations. Their comments and assistance is always relevant and practical. Based on the experience to date the firm has provided an excellent level of service at a reasonable cost. Attachments: 1. Auditor's Year-end Communication Report 2. 2010 Draft Audited Consolidated Financial Statements Prepared By: Approved / Endorsed By: Kristine Senior, CA Gillis A. Paterson, CMA Manager, Accounting Services Director, Corporate Services & Treasurer Copy: Chief Administrative Officer Recommended for the consideration of Pickering Ci Council .3v Zo Tony Prevedel, P.Eng. Chief Administrative Officer ATTACHMENT # TO REPORT # t2r A G -11 Deloitte, 07 Year-end communication The Corporation of the City ofPickering t a • yiE vt x k .eY. S d k.- 4 h For the year ended December 31, 2010 For presentation to the Executive Committee June 13, 2011 03 ■ D e l o tte ® Deloitte & Str a LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 6L7 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca May 26, 2011 Private and confidential Members of the Executive Committee The Corporation of the City of Pickering 1 The Esplanade Pickering ON L1V 6K7 Dear Members of the Executive Committee: Report on audited annual financial statements We have performed an audit of the consolidated financial statements (the "financial statements") of the Corporation of the City of Pickering ("City") as of, and for the year ended, December 31, 2010, in accordance with Canadian generally accepted auditing standards ("GAAS") and expect to issue our audit report thereon dated June 20, 2011. The date of our independent auditor's report will be the date that the financial statements are approved by Council. This report summarizes our findings during the audit. Our audit has been conducted in accordance with the Audit Plan that was presented to the Executive Committee at the meeting on January 10, 2011. Use of our report This report is intended solely for the information and use of the Executive Committee, Council, management and others within the City and is not intended to be, and should not be, used by anyone other than these specified parties. Accordingly, we disclaim any responsibility to any other party who may rely on it. We would like to express our appreciation for the cooperation we received from the officers and employees of the City with whom we worked to discharge our responsibilities. We look forward to discussing this report with you and to answering any questions you may have. Yours truly, Chartered Accountants Licensed Public Accountants Member of Deloitte Tokhe Tohmatsu Limited 09 Table of contents Executive summary .......................................................................................................................................1 Audit scope and findings 3 Audit risks 5 Internal control matters.. 6 Significant accounting practices .....................................................................0-...........................................7 Group audit communications 8 Appendix A - Draft version of our independent auditor's report 9 Appendix B - Draft independence letter .....................................................................................................12 Appendix C - Draft representations letter ...................................................................................................14 © Deloitte & Touche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering i Executive summary This report summarizes the main findings arising from our audit. Audit findings Audit results Our audit of the financial statements was designed to obtain reasonable, rather than absolute, assurance as to whether the financial statements are free of material misstatement. There were no significant departures from the audit planning and risk assessment described in the audit plan, which we presented on January 10, 2011. A detailed description of our audit results has been included on page 3 of this report. Status of our audit We expect to be in a position to render our audit opinion dated June 20, 2011 on the financial statements of the City, the Library Board and the Trust Funds, following approval of the financial statements by the Council and the completion of the following outstanding procedures : • Receipt of the signed management representation letter; • Receipt of legal letters; • Completion of our engagement quality control review; and • Completion of any required audit procedures between the completion of our field work and the expected date of our audit report (June 20, 2011). Audit risks, In accordance with our audit plan, our procedures focused on the following risk areas: • Year-end cut-off; • Revenue/Deferred amounts; • Accounting estimates (including actuarially determined liabilities); and • Tangible Capital Assets. There were no changes to the areas of risks identified in our audit plan. We have summarized the results of our audit procedures for each of these risk areas on page 5 of this report. Internal control over We did not identify any deficiencies in internal controls over financial reporting during financial reporting the year ended December 31, 2010 that we concluded to be material weaknesses. Group audit Based on the procedures we performed as set out in CAS 600, Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors), we are not aware of any items that we believe are significant that should be brought to your attention. Fraud and illegal acts Based on the procedures we performed as recommended by CAS 240, The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements, we are not aware of any illegal acts or fraudulent events with respect to the City that occurred during the year. Significant events As a result of our audit procedures, we did not identify any items that we believe are significant that should be brought to your attention. 0 Deloitte & Touche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering 1 Executive summary Significant accounting The City's significant accounting policies are set forth in Note 1 to December 31, policies 2010 financial statements. We believe managements selection of accounting policies to be appropriate under Canadian public sector accounting standards. Our views on the significant quantitative and qualitative aspects of these accounting policies are presented on page 7 of this report. Management judgment Accounting estimates are an integral part of the financial statements prepared by and accounting estimates management and are based on management's current judgments. These judgments are normally based on knowledge and experience about past and current events, assumptions about future events and interpretations of the financial reporting standards. During the year ended December 31, 2010, management advised us that there were no significant changes in accounting estimates or in judgments relating to such estimates. Our views on the significant quantitative and qualitative aspects of the judgments and estimates made by the City's management are presented on page 7 of this report. Audit adjustments and There were no uncorrected misstatements identified or corrected misstatements uncorrected resulting from the current year audit. misstatements Adjusted and unadjusted There were no disclosure deficiencies noted by us during the current engagement disclosure deficiencies and pertaining to the latest period presented, as all disclosure. items noted during our audit have been corrected by management. Independence We have developed appropriate safeguards and procedures to eliminate threats to our independence or to reduce them to an acceptable level. As required under professional standards, we have reported all relationships and other relevant matters that, in our professional judgment, may reasonably be thought to bear on our independence and we will confirm our independence to the Executive Committee as at the date of our auditor's report for the year ended December 31,. 2010. Our draft independence letter is included as Appendix B. Representations letter A draft version of the representations letter to be signed by management is included in Appendix C. Conclusion We intend to issue an unmodified audit report on the financial statements of the City for the year ended December 31, 2010 once the outstanding items referred to above are satisfactorily completed and the financial statements are approved. A draft version of our Independent Auditor's Report is included in Appendix A. © Deloitte & Tour-he LLP and affiliated entities. Year-end communication - The Corporation of the City of Pickering 2 12 Audit scope and findings We have prepared the following comments to assist you in fulfilling your oversight responsibilities of the financial reporting and disclosure process for which management of the City is responsible. In accordance with Canadian GARS, our.audit is designed to enable us'to express an opinion on the fairness of the presentation of the City of Pickering's annual financial statements prepared in accordance with Canadian public sector accounting standards. Changes to the audit plan The December 31, 2010 audit was conducted in accordance with our audit plan, which was presented to the Executive Committee on January 10, 2011. We confirm that there have been no significant amendments to the audit scope and approach communicated in the audit plan. Use of the work of experts The City used the work of an actuary in the determination of the City's post employment benefits and WSIB benefits. We reviewed the actuary's work and tested the assumptions and data used, ensured the disclosure in the financial statements was adequate, and that the actuary is.in good standing with the Canadian Institute of Actuaries. We did not find any issues with the work of the actuary. Disagreements with management In the course of our audit, we did not have any disagreements with management about matters that individually or in the aggregate could be significant to the financial statements. Consultation with other accountants Management has informed us that the City has not consulted with other accountants about auditing or accounting matters. Throughout the year, we held routine discussions with management regarding the application of accounting principles or auditing standards in connection with transactions that occurred and/or are contemplated, or other reassessments of current circumstances. In our judgment, such discussions were not held in connection with our retention as auditors. Related party transactions Related party transactions are disclosed in Note 14 to the financial statements. We have not identified any related party transactions that are not in the normal course of operations and that involve significant judgments by management concerning measurement or disclosure. © Deloitte & Touche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering 3 Audit scope and findings Legal and regulatory compliance Our procedures did not identify any areas of material non compliance with laws and regulations by the city. Post-balance sheet events Management is responsible for assessing subsequent events up to the date of the release of the financial statements. At the date of finalizing this report, we are not aware of any significant post balance sheet events. i Q Deloitte & Touche LLP and affiliated entities. Year-end communication - The Corporation of the City of Pickering 4 14 Audit risks Our audit plan identified certain audit risk areas that we discussed with the Committee when.reviewing the audit plan. The results of our audit work on these areas of risks are set out below: response Areas of risk Our audit Year-end cut-off Substantive testing of accounts payable, • Satisfactory • Cut-off of revenues and expenses accrued liabilities, deferred revenue and accounts receivable s Test disbursements and cash receipts subsequent to year-end • Test supporting assumptions for accrued liabilities and deferred revenue I Revenueldeferred amounts • Substantive testing to determine if restricted Satisfactory • Revenue recognition of grants and contributions (i.e. development charges, gas tax, contributions etc.) and government transfers have been recognized as revenue in the appropriate period Accounting estimates • Obtain documentation on management's control Satisfactory • Estimates require management over the development of accounting estimates judgements (i.e. allowance for for any significant management estimates and significant property tax appeals, assess risk contingent liabilities, etc.) and • Focused review of calculation and support there are new audit standards . Discussions with management relating to this area • Analytic review of related accounts • Review outcome of estimates from prior years. Tangible capital assets • Review of processes in determining • Satisfactory • Implementation of PS 3150 - completeness, valuation, recording and cut-off of Tangible Capital Assets was new 2010 additions and disposals in 2009 and for 2010 spreadsheets . Substantive testing of transactions and and journal entries still being used processes for assessing useful lives of TCA to appropriately record TCA and . Review of calculations of amortization related amortization Actuarially determined liabilities • Communicate with actuary on our use of their Satisfactory • Accuracy and completeness of report for audit purposes certain liabilities such as workplace • Review actuarial report and test related safety and Insurance ("WSIB")and assumptions and data post-employment benefits • Ensure appropriate accounting treatment has been applied • Review related financial statement note disclosure for accuracy and completeness 0 Deloitte & Touche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering 5 i 15 Internal control matters We obtained an understanding of internal control relevant to the audit, however not all controls are relevant to every audit. We evaluated the design of controls relevant to the audit and determined whether they have been implemented. We are not, however, required in a non-integrated audit to determine whether all relevant controls are operating effectively. Although not required by Canadian GAAS, we may decide that, for a particular engagement, it makes sense to rely on the effective operation of some controls to determine our planned substantive procedures we will perform. In such cases, we would go beyond evaluating the design of relevant controls and determining whether they have been implemented to also test whether the controls on which we intend to rely are operating effectively. Canadian GAAS require us to report to the Committee any significant deficiencies that have come to our attention. We did not identify any significant deficiencies in the audit and we will not be issuing a management letter. Our audit was not designed to provide a high degree of assurance that significant deficiencies, if any, would be detected. Accordingly, we are unable to, and do not, provide any assurance on the design or effective operation of internal control over financial reporting. 0 Deloitte & Touche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering 6 Significant accounting practices Significant accounting policies are those that are most important to the portrayal of the City's financial condition and its results of operations. During the course. of our audit of the financial statements, we considered the qualitative aspects of the financial reporting. process, including items that have a significant impact on the relevance, reliability, comparability and understandability of the information included in the financial statements. Changes in accounting policies During the year ended December 31, 2010, there were no significant changes in previously adopted accounting policies or their application. Management judgment and accounting estimates In ourjudgment, the significant accounting estimates made by management are, in all material respects, free of possible management bias and of material misstatement. The disclosure in the financial statements around estimation uncertainty is in accordance with GAAP and is appropriate to the particular circumstances of the City. Significant estimates include: Payroll-related accruals - $1,307,532 (2009 - $833,619) Allowance for uncollectible taxes - $367,000 (2009 - $367,000) .Allowance for doubtful accounts - $305,000 (2009 - $305,000) Post employment benefit liability - $2,882,900 (2009 - $2,715,100) WSIB benefit liability - $1,672,898 (2009 - $1,368,198) Assessment appeals - $344,705 (2009 - nil) © Deloitte & Touche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering 7 Group audit communications In accordance with CAS 600, Special Considerations-Audits of group financial statements (including the work of component auditors), Veridian Corporation is considered to be a significant component in relation to the December 31, 2010 City of Pickering's consolidated financial statements, given that it is 41 % owned by the City. As required by. CAS 600, we must communicate the following to the Executive Committee: An overview of the type of work to be An audit of the financial statements of Satisfactory. performed on the financial Veridian Corporation was performed by the information of the components component auditor. An overview of the nature of the We have communicated with the component Satisfactory. group engagement team's planned auditor to confirm their understanding of our involvement in the work to be audit requirements. In particular, we have performed by the component communicated with respect to the maximum auditors on the financial information materiality level, ethical requirements, skills of significant components and industry specific knowledge of the component auditor, and their understanding of Canadian GAAP and GAAS. A written confirmation has been obtained from the component auditor of the above. In addition we requested that specific information such as audit risks, unadjusted misstatements and subsequent events be communicated to us. Instances where the group No instances noted. Satisfactory. engagement team's evaluation of the work of a component auditor gave rise to a concern about the quality of that auditor's work Any limitations on the group audit No instances noted. Satisfactory. (e.g., where the group engagement team's access to information may have been restricted) Fraud or suspected fraud involving No instances noted. Satisfactory. group management, component management, employees who have significant roles in group-wide controls or others where the fraud resulted in a material misstatement of the group financial statements. 0 Deloitte & Touche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering 8 Appendix A Draft version of our independent auditor's report Our independent auditor's report on the consolidated financia ia_ tem;e.nts is expected to be in the form noted on the following pages. However, the final form may'raeed to betiadjusted to reflect the final results of our audit. " %g ,n{Sr'r;{~•~`r'G~.(;r r'}., S:l'~'i., :•:ti}}S~:i+~Cti;•v,~y ,,r .,vr,{•,sh,'r+~{;,}}`r;i ti{::;}A i.•}rf~:j~ ?F'tilr v: ..tifi'r'iit`,•: nn•. •..%~fs r...{v::_?;1,T:{ :•{::titer. C%r 41 y;,} f ' '%t: yr y' '''":r.,: V$ft Y 0 Deloitte & Touche LLP and affiliated 'entities. Year-end communication - The Corporation of the City of Pickering 9 19 DDeloitte a' ®i tte & Touche LLP C 5140 Yonge Street Suite 1700 Toronto ON M2N 61_7 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca Independent Auditor's Report To the Members of Council, Inhabitants and Ratepayers ofthe Corporation ofthe City of Pickering We have audited the accompanying consolidated financial statemeaZNM Corporation of the City of Pickering, which comprise the consolidated statement of financi. ion as at December 31, 2010, and the consolidated statements of operations, change in net financAi: ets and cash flows for the year then ended, and a summary of significant accounting policies and ePI.-O' Ianatory information. . nn, Management's Responsibility for the Consolidated &heial Statem"'i n N Management is responsible for the preparation anel'presentation of these cao}dated financial statements in accordance with Canadian public sectarscounting standards and fr$uch internal control + L as management determines is necessary to enable the pre aration;6. Onsolidated ui -W statements that Z ry.{ are free from material misstatement, wk>;efhe due to fraud~fa K". It". ~ Auditor's Responsibility 4} ~r?~'+- Our responsibility is to expres aa,~n opinion on ,ese cons t d fmanoa statements based on our audit. We conducted our audit,' `adce with Caal'an standards require geeaaceptedditing standards. Those that w ply v ethical re?and 1 d perform the audit to obtain Y reasonable assurance a s~#.whe there onsolidateancial statements are free from material s; misstatement t An audit iroxming p o~cedes to oaaudifdence about the amounts and disclosures in the conso I;a 'afed finan= itatements he proceuesrselected depend on the auditor's judgment, includritg_e assessment`of e.xisks a naterial misstatement of the consolidated financial statements, whether dte`. o fraud or error: r ea aking o Bose risk assessments, the auditor considers internal control relevant to 6e se tity's preparat nd fair p 'sentation of the consolidated financial statements in order to design audit pedures that ark a.propnate'm the circumstances, but not for the purpose of expressing r.•;. an opinion on the etfetiveriess ofle entity's internal control. An audit also includes evaluating the appropriateness of accn.U. g poltc er used and the reasonableness of accounting estimates made by management, as well as"'eca_luatiyage overall presentation of the consolidated financial statements. We believe that the audit eviciexice we have obtained is sufficient and appropriate to provide a basis for our audit opinion. i © Deloitte & Touche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering 10 2 0 -2- Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Corporation of the City of Pickering as at December 31, 2010, and the results of its operations, assets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. (To be signed Deloitte & Touche LLP) Chartered Accountants} Licensed Public Accountants Toronto, Ontario S. Y June 20, 2011 ,4 } l: . f . r r'•fr'rvr. r'~ r 1Y., { { r ;;r fir. 1'?rX.Y ?jrr © Deloitte & Touche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering 11 21 Appendix B - Draft independence letter Deloitte & Touche LLP Deloitte. 5140 Yonge Street Suite 1700 Toronto ON M2N 61_7 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca 't 1 4 . All June 20, 2011 Private and confidential` r The Members of Council's The Corporation of the City of Pickering, '.'~rrvr 1 The Esplanade rt~Y` Pickering ON L IV 6K7.~ w • Y' •J'•~~:1, titir~`'~v ?J, 'Vy Dear Members of Council: We have been engaged to audit the consolidate l c' d e rents o tiie -orPoration of the City of Pickering (the City) for theme e`nd d December31, 2014."jar zY;{ ,s v " . Canadian generally acce ~ audrtmg s ,;e• dards (G . -°require thate communicate in writing with you regarding our complian' th relev ethical reql"`ements regarding independence as well as all relationships and other matter e ee G ty our Fu a , d network firms that, in our professional judgment, ma, be thar~ andepedence. We are also required to communicate the relateds s _ e beena . ied to el~nate ldetrtified threats to independence or reduce them to eptable level. 4 ti In determining,". ` ch relationships ">report; se standards require us to consider relevant rules and related interpretat4~~ rescribed be apprope provincial institute / ordre and applicable legislation, covering such mattes, (a) holding a financial it -exert, either}directly or indirectly, in a client; (b) holding a position, eithe~ :y ;c • or indirectly, that gives the right or responsibility to exert significant influence over 'nancial or accounting policies of a client; (c) personal or business relationships of immediate family, close relatives, partners or retired partners, either directly or indirectly, with a client; (d) economic dependence on a client; and (e) provision of services in addition to the audit engagement. We confirm to you that the engagement team and others in the firm, as appropriate, have complied with relevant ethical requirements regarding independence. © Deloitte & Touche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering 12 22 The Corporation of the City of Pickering ' June 20, 2011 Page 2 We have prepared the following comments to facilitate our discussion with you regarding independence matters arising since September 2, 2010, the date of our last letter. We are not aware of any relationships between the City and our Firm, that, in our professional judgment, may reasonably be thought to bear on independence, that have occurred from September 2, 2010 to June 20, 2011. We have not billed the City for any non-audit related services since the date of our last independence letter. GAAS requires that we confirm our independence to those chargx`l governance in the context of the Rules of Professional Conduct of the Institute of Chartered Aec,'"t}a• is of Ontario. Accordingly, we hereby confirm that we are independent with respect to the: ORi ;;~tiK the meaning of the Rules of Professional Conduct of the Institute of Chartered Acco}}t;aiit of Onfaxas of June 20, 2011. This report is intended solely for the use of the EXeffb Committee, Couif6 l hanagement, and others within the City and should not be used for any otliex ipurposes.`r. Yours truly, ''xf~'~ Chartered Accountants ' : fir; J '•~.y:. r:., Licensed Public Accou ifarits S: {r yr ,Siy n.: n ' i!M1'f.'[.•5i•_~{:` ti•~f,:,.~Ir',,~{j~ y.,•Y~•{dJff. •`•i .'lNJ'7 '•'y'ti••, 01J r'. % •i{~rr~,J f y~ :Y• 0 Deloitte & Tbuche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering 13 23 Appendix C - Draft representations letter Deloitte Deloitte & Touche LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 6L7 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca June 20, 2011 , Private and confidential Y, Deloitte & Touche LLP 5140 Yonge Street, Suite 1700 Toronto ON M2N 6L7 " g M•' % Dear Ms Jesty: A f Subject: Consolidated Financial statements arse year endeeter 31, 2010 ' This representation letter is provided in connectio of 1 audit by D 2 Touche LLP ( Deloitte or "you") of the consolidated financial statements o e Co &`kiion of th ' of Pickering (the "City" or "we" or "us") for the year ended j e ember 31, 2 the 'T"! . States t for the purpose of e X, expressing an opinion as to whe ~cial State is pre IN aterial respects, the o accace with Canadian financial position, results of ofa ons, an it flows . . ples , , establ ; y the Pubiij ector Accounting Board. generally accepted accountin pi-Mw : .err f r v.♦ r, ¢ Certain representation , is letter &MIRA c being lim - to matters that are material. An item is considered materi al st f its moialurobs a that its omission from or misstatement in ancial S tements wo»~ i infl uenc deciion of a reasonable person relying on the Financial S~pgen ts,. Y~•r f.•.• ;r We confirm that: r' r{ ~ w Financial statements 1. We have fulfilled our resN©jisibilities AS,.Set out in the terms of the engagement letter between the City and Deloitte dated October .:--,k04£ if e preparation of the Financial Statements in accordance with GAAP. In particular, the Finan # atements are fairly presented, in all material respects, and present the financial position of 'City as at December 31, 2010 and the results of its operations and cash flows for the year then ended in accordance with GAAP. 2. In preparing the Financial Statements in accordance with GAAP, management makes judgments and assumptions about the future and uses estimates. The completeness and adequacy of the disclosures related to estimates are in accordance with GAAP. The City has appropriately disclosed in the Financial Statements the nature of measurement uncertainties that are material, including all estimates where it is reasonably possible that the estimate will change in the near term and the effect of the change could be material to the Financial Statements. © Deloitte & Touche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering 14 24 Deloitte & Touche LLP June 20, 2011 Page 2 Financial statements (continued) Significant assumptions used in making estimates are reasonable and appropriately reflect management's intent and ability to carry out specific courses of action on behalf of the entity. The measurement methods, including the related assumptions and models, used in determining the estimates were appropriate, reasonable and consistently applied in accordance with GAAP and appropriately reflect management's intent and ability to carry out specific courses of action on behalf of the entity. There are no changes in management's method of determining significant estimates in the current year. 3. With regard to the fair value measurements and disclosures of certain assets, liabilities, and specific components of equity, we believe that: ~ , a. The measurement methods, including the related assumptions and modeJ';'used in determining fair value were appropriate, reasonable and consistently applied in ae~ozdancc with GAAP. b. The completeness and adequacy of the disclosures related to fair :auesare in accordance with GAAP. c. No events have occurred subsequent to December 31, 201.." a equire ad`i~~tment.to the fair value measurements and disclosures included in the Finatatements. : 1•:: d. They appropriately reflect management's intent and Aall! 'to carry out specifiurses of action on behalf of the City when relevant to the use of fairltte,~measurements or is -es. 4. All related party relationships and transactions (including asgctated amounts receivables ayable) have been appropriately accounted for and disclosed in the Fin vial S.tatei(ents in accordar ce11. ith the requirements of GAAP. is;i•':;~. 5. We have completed our review of events after Dceer, 31, 2010 aridif,to the date when. the Financial Statements were authorized for issue, 3ui e,20 >;~14. A11 even ' bsequent to the date of the Financial Statements and for which GAAP requires adju"....'"ent or disc`s dire have been adjusted or disclosed. Accounting estimate$;anti disclosures in.. ed iri'fl e -in ancial statements that are impacted by subsequent event.......... AW.. ee p b ri:aro riate7y?:adjustedi; r 6. The Financial Statements are ee'of matei7al:errors and griiisss 7. Management has completed its. s§essment dAbe ability o ` l e Crty to continue as a going concern f•: and in.making its assessment did'noY denti . a ly„~material uncertainties related to events or conditions that may cast significant doubt upon7eyGkys ai°l{p o continue,,as a'going concern, which would require disclosure nrt)iebFuanoial Statements In asses5mgwhetlier the going concern assumption is appropriate, management took fSaccounYiitj,tiavailable oXmation out the future, which is at least, but is noflrited to, twelve rnnoths froigre balance sh et date, their plans for future action and the feasibility of ''ese,plans. r`"`'' * ftis''•. 8. We have disclosed 0 , u all known, aoti al or pos's1b o litigation and claims, whether or not they have been discussed with otu=jawyers, whose effects should be considered when preparing the Financial Statements. As appropriate.ese items htave':been disclosed and accounted for in the Financial Statements in accordance Qll C`r AP. , ••'l1.,1 ySti. titiV Information provided ¢f r~ 9. We have provided you with: a. Access to all information of which we are aware that is relevant to the preparation of the Financial Statements, such as records, documentation and other matters; b. Additional information that you have requested from us for the purpose of the audit; and, c. Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. 10. All transactions have been recorded in the accounting records and are reflected in the Financial Statements. 0 Deloitte & Touche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering 15 Deloitte & Touche LLP 25 June 20, 2011 Page 3 Information provided (continued) 11. We acknowledge our responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud. 12. We have disclosed to you the results of our assessment of the risk that the Financial Statements may be materially misstated as a result of fraud. 13. We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves: a. Management; b. Employees who have significant roles in internal control; or c. . Others where the fraud could have a material effect on the Financial Statements. 14. We have disclosed to you all information in relation to allegations of fraud, or suspected fraud, affecting the entity's Financial Statements and all knowledge of concerns or all gations of potential errors in the selection of accounting policies or the recording of transactions., eating the City that have been communicated by employees, former employees, analysts, re ; or others, whether written or oral. 15. We have disclosed to you all known instances of non-compliance or ete;L n-compliance with laws and regulations whose effects should be considered when p;e in the Firiat taI Statements. 16. We have disclosed to you all communications from: a. taxation authorities concerning assessments or reassess: `that could have a mafal effect on the Financial Statements; and b. regulatory agencies concerning noncompliance with or pote`al deficier}cles in, financi' reporting requirements. We are unaware of any known or prol}a r e instah -.,es of non-compf~a t;e with the requirements of regulatory or gover ze 1 authorities, t ~ Vding their fmancial reporting requirements.,' 17. We have disclosed to you any change in the City' m e.na of over fin 7i c2aI reporting that occurred during the current year that has materially of 84ted, o' r`EOfeasonably i ly to materially affect, the City's internal control oveg. cial reporting 18. We have disclosed to you the ide ,{b tli Igitity, s relate.c~r art``~..e ~a ld he~•.relat&d party relationships and transactions o 01*01c, h we are aryvare, inclu~t ~antees, . rnonetary transactions, transactions for no :de rationatOparticipati'ajt a defined benefit plan that shares ~ risks between group entities_ : ~ d 1. 'r 3`ti Y 4~J } Work of specialists y fi ~ 41 19. We agree with th~vo k of specialfsts eval {ai the valuaonf post employment benefits X d liability and WS '`benefits liability knave a~e~gtately considered the qualifications of the ' specialist in determirtu gaamounts and d bsures ii ft" in the Financial Statements and underlying accounting records. We`d d,,not give any, `ridi pause an ,Mstructions to be given to specialists with respect to values or amougffil;erived in an a` tei~ppt to bias their work, and we are not aware of any matters that have impacted tli dependences-it objectivity of the specialists. Compliance with contractual agreerifefs,•.r;,:>' 20. We have disclosed to you, and the CiN: as:complied with all aspects of contractual agreements that could have a material effect on the FinaMial Statements in the event of non-compliance, including all covenants, conditions or other requirements of all outstanding debt. Title to assets .21. The City has satisfactory title to and control over all assets, and there are no liens or encumbrances on such assets. We have disclosed to you and in the Financial Statements all assets that have been pledged as collateral. 0 Deloitte & Touche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering 16 Moitte & Touche LLP June 20, 2011 Page 4 Independence matters For purposes of paragraph 22, "Deloitte" shall mean Deloitte & Touche LLP and Deloitte Touche Tohmatsu Limited, its member firms and the affiliates of Deloitte & Touche LLP, Deloitte Touche Tohmatsu Limited and its member firms. 22. Prior to the City having any substantive employment conversations with a former or current Deloitte engagement team member the City has held discussions with Deloitte and obtained approval from the Executive Committee of the Council. Liabilities and contingencies:., •:rry, 23. We have disclosed to you all liabilities' provisions, contingd~jrxjiabilities and contingent assets .0.':C ' including those associated with guarantees, whether wriUch' p oral, and they are appropriately reflected in the Financial Statements.`'- . Loans and receivables f?'• 24. The City is responsible for determining and rr aXn a ning the adequat -of the allowance for doubtful notes, loans, and accounts receivable, as w,7V %estimates used to d&T4 ne such amounts. Management believes the allowance's are a`0ghate to absorb currently eaf hated bad debts in the account balances.`" Employee future benefits};: 25. Employee future benefit costs, as 6%;%Ad obligations'ha e been properly recorded and adequately disclosed in the Financial Statemei tMfiQ!djug those arigxgg under defined benefit plans as well as termination arrangements. We belie e that lie:a tuarial assitr~n itions and methods used to measure defined benefit plan assets, liabilities'a d costs` o ;financial accoup ing purposes are appropriate in the circumstances giirr :r}•iyvrr~ r%: ;hl ~rrrr., n~.;,::r•i{:'~~r:., Environmental liNg ties/contifigeucies f '}tip' ,Y F•.. Y:. 26. We have considerea;the effect; tenvironnigM-- matters on the City and have disclosed to you all liabilities rovisions oT contin:g6iicie8 arisinIftom environmental matters. All liabilities rovisions contingfeics:;ad co 'et'aYisiyom enyir:.gnmental matters, and the effect of environmental maLfexs on tt e Cyat sing v ' • e" of the reler, ~.assg~'~%are recognized, measured and disclosed, as apopriate, in tte;E3nanci atements. f~ ~Z•n~ Jf fs, I Yours trU } 'r,:':Y ~ 4 The Corpora.of the City}i. ickering Name Name Title Title © Deloitte & Touche LLP and affiliated entities. Year-end communication -The Corporation of the City of Pickering 17 27 i www.deloittexa Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services through more than 7,600 people in 57 offices. Deloitte operates in Quebec as Samson Belair/Deloitte & Touche s.e.n.c.r.l. Deloitte & Touche LLP, an, Ontario Limited Liability Partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. © Deloitte & Touche LLP and affiliated entities. 28 ATTACHMENT #,.t-TO REPORT# Consolidated financial statements of The Corporation of the City of Picked g December 31, 2010 D O FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickerin 2 9 Y g December 31, 2010 Table of contents Independent Auditor's Report .............................................................................................................................1 Consolidated statement of financial position 2 Consolidated statement of operations 3 Consolidated statement of change in net financial assets ..................................................................................4 Consolidated statement of cash flows 5 Notes to the consolidated financial statements ....................................6-24 D O O FOR DISCUSSION PURPOSES ONLY i Deloitte & Touc e LLP 5140 Yonge reet Suite 1700 Toronto O M2N 61-7 Canada Tel: 16-601-6150 F :416-601-6151 .deloitte.ca Independent Auditor's Report To the Members of Council, Inhabitants and Ratepayers of the Corporation of the City of Pickering We have audited the accompanying consolidated financial statements of e Corporation o he City of Pickering, which comprise the consolidated statement of financial posi 'on as at Decemb 31, 2010, and the consolidated statements of operations, change in net financial ass . s, and cash flow for the year then ended, and a summary of significant accounting policies and other planatory info ation. Management's Responsibility for the Consolidated Financia Statements Management is responsible for the preparation and fair prese tat' hese c solidated financial statements in accordance with Canadian public sector acco nting st ards, nd for such internal control as management determines is necessary to enable the pre aration of co o 'dated financial statements that are free from material misstatement, whether due to fr d or error. Auditor's Responsibility Our responsibility is to express an opinion on th se consolidated f ancial statements based on our audit. We conducted our audit in accordance with C a ' n generally ccepted auditing standards. Those standards require that we comply with ethic requi a plan and perform the audit to obtain reasonable assurance about whether-the co solidate nanc' 1 statements are free from material misstatement. An audit involves performing proce res to obtain au ' evidence about the amounts and disclosures in the consolidated financial stateme s. The procedure selected depend on the auditor's judgment, including the assessment of risks f material misst ement of the consolidated financial statements, whether due to fraud or or. I m ing those ri assessments, the auditor considers internal control relevant to the entity's prepa ti a fair pre ntation of the consolidated financial statements in order is in the circumstances, but not for the purpose of expressing to design audit procedures at all ro l5l an opinion on the effecti ness of th tit s internal control. An audit also included evaluating the appropriateness of ace nting policies u d and the reasonableness of accounting estimates made by management, as well s evaluating the verall presentation of the consolidated financial statements. We believe that t audit evidence e have obtained in sufficient and appropriate to provide a basis for our audit opinio . Opinion in our op. ion, th li ted financial statements present fairly, in all material respects, the financial positio of the Corpo ti of the City of Pickering as at December 31, 2010 and the results of its oper ions and its cash ows for the year then ended in accordance with Canadian public sector ace unting standards Chartered Ac ountants Licensed P lic Accountants June 20, 11 Toront ,Ontario FOR DISCUSSION PURPOSES ONLY i The Corporation of the City of Pickering r 31 Consolidated statement of financial position as at December 31, 2010 2010 2009 Financial assets Cash 7,337,107 8,079,1 Investments (Note 3) 67,883,2 4 59,516 01 Taxes receivable 16,005 70 16,0 985 Accounts receivable 3,8 ,9 3 05,321 Investment in Veridian Corporation (Note 4(b)) 41 19 782,645 Promissory notes receivable Note 5 ,069,000 25,069,000 61,286,580 152,418, 359 Liabilities Accounts payable and accrued liabilities 13,173,37 11,794,753 Other current liabilities 94,4 1 122,166 Deferred revenue (Note 6) 40,429 95 37,914,579 Long-term liabilities (Note 9) 16,5 ,742 14,219,970 Post-employment benefit liability (Note 8(a)) 2 82,900 2,715,100 WSIB benefit liabilities Note 8(b)) ,672,898 1,368,198 74,836,395 68,134,766 Net financial assets 86,450,185 84,283,593 Non-financial assets Tangible capital assets (Note 10) 187,669,237 186,242,634 Prepaid expenses O 386,274 398,024 Inventory 391,536 266,506 188,447,047 186,907,164 Accumulated surplus Note 11 274,897,232 271,190,757 Approved by the Board . /icto O P age 2 FOR DISCUSSION PURPOSES ONLY i 32 The Corporation of the City of Pickering Consolidated statement of operations year ended December 31, 2010 2010 2009 Budget Actual Actual (Unaudited) Note 17 Revenues Residential and farm taxation 33,031,579 33 40 78 32 31,448 Commercial and industrial taxation 8,683,405 ,7 6 302,954 Taxation from other governments 7,104,198 7,427,68 7,215,337 User charges 8,289,641 7,661,881 7,466,507 Government grants and fees 11,185,342 4,024,406 5,080,964 Other contributions and donations 1,395,759 980,367 1,640,646 Development charges and developer contributions earned 2,353 93 966 51 966,962 Contributed tangible capital assets - 3,0 ,356 2,774,280 Investment income 00 0 98,499 309,690 Penalties and interests on taxes ,120, ,499,536 2,320,563 Fines 850,100 886,995 811,938 Interest on promissory notes 1,590,250 1,588,823 1,905,244 Equity share of Veridian Corporation earnings (Note 4 (c)) 3,477,285 4,509,327 Other 210,6 261,549 764,876 Gain on disposal of tangible capital assets - 94,823 46,758 Total revenues 77,0 ,860 75,319,812 76,147,494 IV, Expenses (Note 18) Current General government 14,787,205 13,644,762 12,815,997 Protection to persons and prope y 19,805,377 19,016,456 18,768,392 Transportation services 11,344,464 9,558,606 10,160,486 Environmental services 2,177,524 3,363,579 3,085,999 i 468,620 475,524 402,489 Social and family serv ces Recreational and cultur se s~ 31,034,428 22,763,222 22,155,313 Planning and develo ent 3,501,297 2,791,188 2,218,631 83,118,915 71,613,337 69,607,307 Annual surplus (6,104,055) 3,706,475 6,540,187 Accumulated sur /sbeginning of /ar 271,190,757 271,190,757 264,650,570 Accumulated r lus end of a 265,086,702 274,897,232 271,190,757 O Page 3 FOR DISCUSSION PURPOSES ONLY 33 The Corporation of the City of Pickering Consolidated statement of change in net financial assets year ended December 31, 2010 2010 2009 Budget Actual Actual (Unaudited) Note 17 Annual surplus (6,104,055) 3,7 ,475 6,54 ,187 Acquisition of tangible capital assets (11,299,795) (11 6", 30) (15, 4,607) Amortization of tangible capital assets 9,725,086 ,6 11 416,629 (Gain) loss on disposal of tangible capital assets - 4, (46,758) Proceeds on disposal of tangible capital assets 127,839 222,280 7,678,764 2,279,872 717,731 Acquisition of inventory of supplies - (1/6,273) (860,335) Use of inventory of supplies - 786,246 Acquisition of prepaid expenses - (394,788) Use of re aid ex enses 529,102 113,280 60,225 Change in net financial assets (7,678,764) 2,166,592 777,956 Net financial assets, beginning of year 84,283,593 84,283,593 83,505,637 Net financial assets end of year 76,604,84 86,450,185 84,283,593 D O O Page 4 FOR DISCUSSION PURPOSES ONLY 34 The Corporation of the City of Pickering Consolidated statement of cash flows year ended December 31, 2010 2010 2009 Operating transactions Annual surplus 3,706, 5 6,540,1 Non cash items Amortization of tangible capital assets 9,6 1,811 9,41 ,629 Gain on disposal of tangible capital assets (9 23) 46,758) Equity share of Veridian Corporation 85) 509,327) Contributed tangible capital assets recorded in revenue (3,031,3 (2,774,280) sk, Change in non-cash operating items: Decrease (increase) in taxes receivable 60,315 (2,387,404) Decrease in accounts receivable 33,33 986,220 Increase in accounts payable and accrued liabilities 1,378, 6 930,256 (Decrease) increase in other current liabilities (2 ,685) 15,150 Increase in deferred revenue 2,5 5,416 1,788,841 Increase in post-employment benefit liability 167,800 151,600 Increase in WSIB benefit liabilities 304,700 283,000 Increase in inventory (125,030) (74,089) Decrease in prepaid expenses 11,750 134,314 11,024,044 10,454, 339 Capital transactions Acquisition of tangible capital assets (8,030,074) (12,640,327) Proceeds on disposal of tangible capital ass 127,839 222,280 7,902,235 12,418,047 Investing transactions (Increase) decrease in investment/orporation (8,366,963) 4,106,150 Dividends received from Veridian 2,140,382 3,362,000 6,226,581 7,468,150 Financing transactions Proceeds from debentu/iss 4,046,00 0 - Princi al re a ment of es 1,683,228 1,891,393 2,362,772 1,891,393 (Decrease) increas in cash. (742,000) 3,613,049 Cash, beginning ear 8,079,107 4,466,058 Cash end of ar 7,337,107 8,079,107 .O Page 5 FOR DISCUSSION PURPOSES ONLY Z335 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2010 I 1. Significant accounting policies The consolidated financial statements ("the financial statements') of The Corporati n of the City of Pickering (the "City") are the representations of management prepared in accord nce with accounti g standards established by the Public Sector Accounting Board ("PSAB") of the anadian Institute Chartered Accountants. Significant accounting policies adopted by the City a a follows: (a) Reporting entity (i) Consolidated statements The consolidated financial statements reflect the assets, Ii ilities, revenues d expenses of the reporting entity. The reporting entity is comprised of t e activities of all mmittees of Council and the City of Pickering Public Library Board ich is controlled y the City. All material inter-fund transactions and balances ar eliminated on co olidation. (ii) Investment in Veridian Corporation The City's investment in Veridian Corporation i accou for o a modified equity basis, consistent with generally accepted accounti g principles a e mmended by PSAB for investments in government business ente rises. Under the odified equity basis, Veridian Corporation's accounting policies are no adjusted to confo to those of the City and inter- organizational transactions and balan s are not elimina d. The City recognizes its equity interest in the annual earnings or to of Veridian Corp ration in its consolidated statement of operations with a corresponding i rease or decreas in its investment asset account. Dividends that the City may rece e m Veridian orporation and other capital transactions are reflected as adjustments i he in as et account. (iii) Operations of School Boar and the R on Durham The taxation, other reve es, expenditures assets and liabilities with respect to the operations of the school boards a d the Region of D rham are not reflected in these consolidated financial statements. (iv) Trust funds Trust funds an th ted oper tions administered by the municipality are not consolidated, but are repo d y"n e Trust Funds Statement of Financial Activities and Statement of Financi Position. (b) Basis of acc unting (i) Accr al basis of accou ing R enue and expen s are reported on the accrual basis of accounting. The accrual basis of ccounting recogn• es revenues as they are earned and measurable; expenses are recognized as # are incur d and measurable as a result of the receipt of goods and services and the ati of a le al obligation to pay. (ii) Inv t Tempor investments are recorded at the lower of cost plus accrued interest and market value. ong-term investments are recorded at cost and any loss in value which is considered other han temporary is recorded as appropriate. Any premium or discount at purchase of an inv stment is amortized over the life of the investment. Page 6 FOR DISCUSSION PURPOSES ONLY - 1 36 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2010 1. Significant accounting policies (continued) (b) Basis of accounting (continued) (iii) Tangible capital assets ("TCA") Tangible capital assets are recorded at cost less accumulated am iz •on. Cost incl des all costs directly related to acquisition or construction of the tangibl ca asset incl ing transportation costs, installation costs, design and engineering ees, eg es a site preparation costs. Amortization is recorded on a straight-line asis over the sti ated life of the tangible capital asset commencing once the asset is av ilable for use as f Ilows: Buildings 15 to 45 yea Machinery and equipment 2 to 25 ye s Vehicles 5 to 15 y ars Infrastructure - Roads 10 to 5 years Infrastructure - Storm sewers 25 to 0 ears Infrastructure - Sidewalks 20 40 Information technology hardware 4 o 8 years Infrastructure - Parks 0 to 40 years Library collection materials 4 to 7 years Furniture and fixtures 10 to 50 year One-half of the annual amortization 's charged in the ar of acquisition and in the year of disposal. Assets under constructi are not amortiz until the asset is available for productive use. Land is not am iz Tangible capital assets recei ed as o are recorded at their fair value at the date contributed, and that amo t is also re rde s revenue. (iv) Accounting for Property ax Capping Prov ions resulting from the Ontario Fair Assessment System The net impact in operty taxes as a esult of the application of the capping provisions does not affect the Co solidated Statem t of Operations as the full amounts of the property taxes were levied. H e e the cappin adjustments are reported on the consolidated Statement of Financial Po ' io ~ss the o the Region. (v) Deferred r venue Deferr revenues repres nt user charges and fees which have been collected but for which the r ated services hav yet to be performed. These amounts will be recognized as revenues in t e fiscal year the s rvices are performed. In addition, any contributions received with e ernal restrictions re deferred until the related expenditures are made. (vi) Post employmen enefits e sent v ue of the cost of providing employees with future benefit programs is ogn ed s employees earn these entitlements through service. Actuarial gains and losses are rti ed over the average remaining service period ("ARSP"). The actuary determined ARSP t e 15 years. (vii) Inve ory In ntory is valued at the lower of cost and replacement cost. Cost is determined on a eighted-average basis. Page 7 FOR DISCUSSION PURPOSES ONLY 37 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2010 1. Significant accounting policies (continued) (b) Basis of accounting (continued) (viii) Government transfers Government transfers are recognized in the financial statements i he enod in whic the events giving rise to the transfer occur, eligibility criteria are met n sonable a imates of the amount can be made. (ix) Intangible assets Intangible assets are not recognized as assets in the fin cial statements. (x) Use of estimates The preparation of financial statements in conform' with Canadian p blic sector accounting standards requires management to make estima s'd assumptio s that affect the reported amounts in the financial statements and acco an g tes. Ac ounts involving significant estimates include allowance for doubtful acc nts, ac ed liab' ties, employee future s ts. Actual results could differ benefits liabilities and estimates relating to ngible cc from these estimates. 2. Operations of school boards and the Regio of Durham Further to Note 1 (a) (iii) requisitions are ma a by the Region o Durham and School Boards requiring the City to collect property taxes and pay nts in lieu of pro rty taxes on their behalf. The amounts collected and remitted are summarizes foll e ion School board Region' v $ $ Taxation 84,025,691 41,647,961 Payments in lieu of taxes 5,432,182 497,127 89,457,873 42,145,088 3. Investments O 2010 2009 Cost Market value Cost Market value Tempora/investments 33,936,095 33,965,040 27,643,803 27,626,605 Lon -ter 33,947,169 33,944,590 31 872,498 32,064,236 67,883,264 67,909,630 59,516,301 59,690,841 Te porary i e s are composed of banker's acceptances, deposit notes and discount notes. They e recorded at o which is not significantly different from market value. Long-term investments are comprised of dep sit notes and bonds. I I Page 8 FOR DISCUSSION PURPOSES ONLY 33 The Corporation of the City of Pickering Notes to the consolidated financial statements. December 31, 2010 4. Investment in Veridian Corporation (a) Veridian Corporation is owned by the City of Pickering, Town of Ajax, Municip ity of Clarington d the City of Belleville. The City has a 41 per cent interest in Veridian Corpora on. Veridian Corporation, as a government business enterprise, is accounted for on th modified equity b is in these financial statements. Veridian Corporation serves as the electrical is 'bution utility f r a number of communities including the four noted above and conducts n- ulated utilit service ventures through its subsidiaries. The following table provides condensed supplementary consolid ed financial infor tion for the corporation and its subsidiaries for the year ended December 3 The amounts a disclosed in thousands of dollars: 2 0 2009 00's) (000's) Financial position: Assets Current 74,256 78,839 Capital and intangibles 173,846 160,303 Other 20 20,515 19,350 Total assets 268,617 258,492 Liabilities Current 58,286 72,613 Long-term debt D 76,928 60,794 Other 33,136 28,054 Total liabilities 168,350 161,461 Shareholders' equity Share capital 67,260 67,285 Contributed capital 25 25 Retained earnin 32,982 29,721 Total equity 100,267 97,031 Total liabilities and e u 268,617 258,492 Financial a ivities: Reven 256,203 246,319 Other ncome 6,165 6,554 Ex nses 253,852 243,691 min s from disco /tinuedrations 35 1,817 Nit e s for the ear 8,481 10,999 I I I Page 9 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering 39 Notes to the consolidated financial statements December 31, 2010 4. Investment in Veridian Corporation (continued) (b) City of Pickering's equity represented by: /010 09 Promissory notes receivable Note 5 zo /069,000 Investments in Veridian Corporation 30,496,196 Initial investment in shares of the Corporation 30,496/)(11,817,020) Accumulated earnings 23,47119,994,648 Accumulated dividends received /(13,957,4 Increase in value of investments 1 108 1,108 821 Total investment 411,11 lb,548 39,782,645 (c) Equity in Veridian Corporation 2010 2009 Balance, beginning of year 67,894,665 66,747,338 Equity. share of net earnings for the ye 3,477,285 4,509,327 Dividend received from Veridian Cor ration (2,140,382) 3,362,000 Balance end of year Note 11 69,231,568 67,894,665 (d) Contingencies and guarantees Veridian or ion (the "Corporation') as disclosed in their financial statements are as fol ws: (i) Insurance claims The Corporation is member of the nicipal Electric Association Reciprocal Insurance Exchange ("ME IF) which was c ated on January 1, 1987. A reciprocal insurance exchange may a •ned as a gr up of persons formed for the purpose of exchanging reciprocal co ra o ndemnit or inter-insurance with each other. MEARIE provides general liability ins ance r ectric utilities. Insuran premiums c r d to each member utility consist of a levy per $1,000 of service reveh subject to a cre ' or surcharge based on each electric utility's claims experience. Insu nce limits of up t $30,000,000 per occurrence are covered by MEARIE. O Page 10 FOR DISCUSSION PURPOSES ONLY 40 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2010 4. Investment in Veridian Corporation (continued) (d) (continued) (ii) Other claims An action has been brought under the Class Proceedings Act: 199 . T plaintiff cla seeks $500,000,000 in restitution for amounts paid to Toronto Hydro a t er Ontario unicipal . electric utilities ("LDCs") who received late payment penalties ich on to int rest at an effective rate in excess of 60% per year, contrary to Section 47 of the Cri a ode. An Ad Hoc Committee of Electricity Distributor Associatio ("EDA") participa d in a court- supervised mediation process to explore possible settle ent of the case a ainst the LDCs and reached a settlement in principle of this litigation behalf of all LD in March 2010. In order to become effective, this tentative settlement r quired the conse and approval of all LDCs and approval of the Ontario Superior Court J stice. As per e terms of the settlement: (i) LDCs collectively pay $17,000,000 plus osts a axes; (ii) Payment is not due until June 30, 20 1; and (iii) LDCs are at liberty to seek OEB rmission to recov r settlement costs through rates and the EDA is investigating th est mechanism f r obtaining OEB approval. The settlement was approved by t e Ontario Superio court of Justice in the minutes of the settlement dated April 21, 2010 nd the Corporatio gave its consent to pay $347,000 for its share of the costs and damag re this cl ss action. On October 29, 2010, the B conve d a g eric proceeding on its own motion to determine whether amou s related to t s tlement should be allowed to be recovered from ratepayers. As per the Board's o er dated Februa 22, 2011, the costs and damages arising from the settlement of this ss action shall b recoverable from all ratepayers of the Affected Electricity Distrib tors. The order all at 5,000 to e Corporation, as a share of its costs and damages and, accordingly D r _xie or this liability and a corresponding regulatory asset in the amount o 345,00 at D ember 31, 2010, and a request for the recovery of the same has be filed with. the E . (iii) Cont ctual obligation - ydro One Networks Inc. (WONT) T Corporation's s sidiary, Veridian Connections Inc. ("VCI"), is party to a connection and ost recovery agre ment with HONI related to the construction by HONI of a transformer station designat to meet VCI's anticipated electricity load growth. Construction of the project mplete during 2007 and VCI connected to the transformer station during 2008. he to that the cost of the project. is not recoverable from future transformation con io revenues, VCI is obliged to pay a capital contribution equal to the difference betwee these revenues and the construction costs allocated to VCI. The construction costs alloca d to VCI for the project are $9,975,000. Th Corporation has recorded a liability and a corresponding intangible asset for $1,212,000 at December 31, 2010, based on management's best estimate of the present value of the uture transformation connection revenue shortfall. Page 11 FOR DISCUSSION PURPOSES ONLY /441 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2010 4. Investment in Veridian Corporation (continued) (iv) Environmental liability In 2008, Environment Canada issued its final regulations governing th management of PCBs. As at December 31, 2010, the cost of testing performed to d e has been inclu d within regulatory assets. Costs relating to future expenditures ass is d with the re oval and destruction of PCB contaminated transformers and re media ' n heroically- contaminated lands has been estimated in the amount of $824 00, hi as be n recorded as a liability at December 31, 2010. Because such expendit es are expec d be recoverable in future rates, the Corporation has recorded a equivalent amou t as a regulatory; asset. (e) Lease commitments Future minimum lease payment obligations under opera ' g leases are as f lows: (000's) 2011 604 2012 165 2013 3 2014 2 2015 2 Thereafter 72 848 D 5. Promissory notes receivable 2010 2009 Promissory note receivable rom Veridian Cor ration maturing November 12 012 and bearing interest at 7.62% until April 30, 1 tfie the gre er of 6% or the Ontario Ener y B d ng term debt rate on an annu basis to m ity % effective May 1, 2010) 7,095,000 7,095,000 Promissory to receivable fro Veridian Connections Inc. maturin ovember 1, 203 and bearing interest at 7.62% ntil April 30, 201 , then 5.57% from May to Decem er 31, 2014 and then the Ontario E rg oar eem long-term debt rate for each uccessi iv a period thereafter 17,974,000 17,974,000 25,069,000 25,069,000 Interest revenu earned from these notes receivable totaled $1,588,823 (2009 - $1,905,244).- The promissory n es from Veridian Corporation are convertible into common shares at the rate of one common s re for every $1,000 of principal amount, at the option of the City. Page 12 FOR DISCUSSION PURPOSES ONLY 42 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2010 6. Deferred revenue 2 /10 20 Obligatory Reserve Funds Development charges /2,185,222 95 714,332 Parkland , 1,914,793 Federal gas tax ,410 3,032,702 Third party/Developer's Contributions Reserve Fund 2,210,924 37,063,1 34,872,751 Other unearned revenues 3,36 ,886 3,041,828 40 9 995 37,914 579 Continuity of deferred revenue is as follows: 2010 2009 Balance, beginning of year 37,914,579 36,125,738 Restricted funds received 4,667,912 4,246,730 General funds received D 325,058 442,460 Interest earned 908,828 1,283,835 5,901,798 5,973,025 Earned revenue transferred to erations 7' 3,386,382 4,184,184 Balance end of year 40,429,995 37,914,579 7. Interfund loans As a means of fundi vario~apita a quisitions, funds are borrowed by the Capital Fund from Development Char es and Park d eferred revenue (obligatory reserve funds). These funds are secured by prom sory notes with i erest rates ranging from 3.5% to 4.7% and various payment terms ranging from 1 ear to 7 years. T financing arrangements and ultimate repayment are approved by Council thro h the current budget process. Although these notes have payment terms as noted above, they are re ayable on deman . The following is a summary of the related loans: 2010 2009 ads and s ig s 193,716 711,509 ommunity faciliti s, libraries and parks 360,844 829,558 Protection servi es 520,145 694,491 Environment services 23,475 34,554 Municipal b ildin 25,292 29,716 1,123,472 2,299,828 Page 13 FOR DISCUSSION PURPOSES ONLY ~I i A7 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2010 8. Post-employment benefit liability i (a) Post-employment benefit liability The City makes', available to qualifying employees who retire before the ag of 65, the opport ity to continue their coverage for benefits such as post-retirement extended ealthcare benefit . Coverage ceases at the age of 65. The City also provides full time and er nent part-ti employees a sick time entitlement and any unused entitlement is acc m ear to ar. This accumulated entitlement is not vested and is forfeited at the time of etirement rm. ation. The most recent actuarial valuation of the post-employment benefits s performed at J nuary 1, 2008. Information about the City's benefits liability is as follows: 2 0 2009 Accrued benefits liability, beginning of year /226,000 100 2,563,500 Current service costs 214,200 1k 1 Interest on accrued benefits 100 186900 Amortization of, actuarial losses 000 49,000 Benefits aid durin the ear (298,500) Accrued benefits liability, end of ear 2,882,900 2,715,100 Accrued benefit obligation 3,554,100 3,435,300 Unamortized actuarial losses (671,200) 720,200 Accrued benefits liability, end of e r 2,882,900 2,715,100 The main actuarial assumption employed in a tuarial valuations are as follows: (i) Discount rate The present value a at December 31, 010 of the future benefits was determined using a discount rate of 5. /o (2009 - 5.5%). (ii) Dental costs The dental st to as .0% increase per annum. (iii) Health c is Healt costs were assu d to increase at 8.5% in 2010 and decrease by 0.5% increments per ar to an ultimate ate of 5% per year in 2017 and thereafter. Page 14 FOR DISCUSSION PURPOSES ONLY 44 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2010 8. Post-employment benefit liability (continued) (b) Workplace Safety and Insurance Board (WSIB) benefit liabilities Effective January 1, 2001, the City became a Schedule fl employer under t e Workplace Saf & Insurance Act and follows a policy of self insurance for the risk associate with paying bene is for workplace injuries for all its employees. The WSIB administers the clai s r_ ted to work ace injuries and is reimbursed by the Corporation. The most recent actua al on of th SIB benefits was performed at December 31, 2008. Information about the City's WSIB liability is as follows: 20 2009 Accrued WSIB liability, beginning of year 1, 8,198 1,085,198 Current service cost 301,800 293,000 Interest on accrued benefits 97,400 80,000 Benefits paid during the year (94,5100) (90,000) Accrued WSIB'liabilit end of ear 1,672,898 1,368,198 The main actuarial assumptions employed ' the actuarial val tions are as follows: (i) Discount rate The present value as at Decem er 31, 2010 of the uture benefits was determined using a discount rate of 6% (2009 - 6. /o). D (ii) Inflation rate The rate of inflation was ssumed to be 31 / per annum. (iii) WSIB Administration ate Liabilities for WSI benefits have be increased 30% to reflect the administration rate charged by WSI . A WSIB Res e n, was est lished in 2001. The Reserve Fund balance at December 31, 2010 was 02 - 1,658,462). In addition, the City purchased two insurance policies t at protect ity gainst significant claims to the Corporation. The occupational accide insurance pays I s claims up to $500,000 per work related accident. The excess work s compensation i demnity insurance has a $500,000 deductible and will pay for claims up and including $1 ,000,000 per work related accident. 9. Long-ter liabilities (a) T e b e of long- erm liabilities is made up of the following: 2010 2009 The munic' ality is responsible for the payment of princi I and interest charges on long-term liabi ' ies issued by the Regional Municipality of D ham on the City's behalf. At the end of the year, e outstanding principal amount of this liability is 16,582,742 14,219 970 Page 15 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering 45 . Notes to the consolidated financial statements December 31, 2010 9. Long-term liabilities (continued) (b) The above long-term liabilities have maturity dates of July 12, 2011, 2016 an 021, November , 2012, November 21, 2012 and 2018, July 15, 2014, December 23, 2014 an October 15, 201 and 2020 with various interest rates ranging from 1.55% to 5.6%. Principal rep yments are sum rized as follows: $ 2011 2,158,055 2012 3,208,669 2013 1,818,256 2014 1,698,596 2015 1,277,073 Thereafter 6,422,093 16,582,742 (c) Long-term liabilities include a principal sum of $1 57,000 as ` fun able Debentures' which may be raised by the issuance of debentures over a urther period not exceed 10 years. (d) The above long-term liabilities have been ap roved by Council 6y-law. The annual principal and interest payments required to service thes liabilities are wit ' the annual debt repayment limit prescribed by the. Ministry of Municipal airs and Housing (e) Interest expense recorded in the year elating to these I g-term liabilities is $ 692,082 (2009 - $742,139). D 10. Tangible capital assets Information relating to tangible c ital assets is as f ows: (i) Contributed tangible capi I assets The City records tangi a capital assets ntributed by an external party at fair value on the date contributed. Typical a le , are road , storm sewers and sidewalks installed by a developer as part of a subdivisi or a opment greement. Contributions of tangible capital assets in 2010 amounted to $3, 1,3 0 74,280). (ii) Tangible capi I assets reco iz d at nominal value Land unde roads are assign a nominal value of one Canadian dollar because this land only supports r is intended to s pport road infrastructure and the majority of land acquired supporting road al wances was acq fired at no cost. (iii) Wor s of art and histor' al treasures T e a mus um which holds various historical treasures and historical buildings pertaining o th rita an history of the City of Pickering. These items are not recognized as tangible capital a i he financial statements because a reasonable estimate of the future benefits associated wi such property cannot be made. Any acquisition or betterment of these assets is recognized s an expense in the financial statements. (iv) Other Then book value of tangible capital assets not being amortized because they are under con ruction is $3,962,111 (2009 - $1,841,341). ring the year, there were no write-downs of assets (2009 - $Nil) and no interest was capitalized during the year (2009 - $Nil). Page 16 FOR DISCUSSION PURPOSES ONLY 4 6 O M 00 T M O co N N M O M GO N tq I : co OD tD N N oD to 00 co N m h a) co -N n R O M O tO P m rn r" ~f! to o to LLo r two m of d M M r ° 0 a- c EA co O v o v m _ ~ v 7 j c (O N N N W r- N (D O m m 00 0) m O C c- C \i M Q 8 N to M M 01 O m O N N N r O f V ` j M M M M co O M M O C \i O C O O O N N r j Z. C N to r- m (D t0 M m f~ O O l6 M O n r- C O V O O w 00 N fD - M O N N f~ N O E M V OD (O tO to N U to t° M V rn vi w CO O N n O) Y O N co V tO m M N N j t0 M f~ M C O r O CO a N co m O M m r N C ` N N O m 0) tD N 0) tD R O N C 00 0 O M N C C m .0 N M r C3, It .0 (r0 M M ((0 m o,3 N v rn (o r~ v m o 0 E C'E N D 0 (D I- N N N O Q V f0 M N N r N N n (0 L C N f9 n M V O) co r O 0) Y m ? V O N N M'o OD , ~p CD V N N 7 O t0 W ID N (D (t1 7 M ID D) O M V N N N 2 -O OD t0 W M V J y to M (D (6 Z m Q c U) W co Q i2 EA r (D M N N d N 0). N (D m r N N t- 3: N N V C' N N T P N O M tO (D N O N o- z N O N M O W V N E O N M r N p r a0 a V M !n C C) U M t ' N f9 N m m 00 r- .0 (O O ^A , j co a0 N N oC N O OMi II Q a°. V lO M O) 0) LL ` O O (0 M O 0 M N r r ` V) O N cl q: N tO v 12 O • ~ C (~--I y fA N O Y co tO (D v I- (D N v w t0 N V V V ~ O M N O u') U U N- Q) M t[) y O > a ? N W 'r N a t` U m O N (O M 1-- qj f9 N (0 O .0 N V V ~ V CO m M 00 OD d 1~ C E m t0 O t` " O O O O v r (o (0 v r (0 (0 0 • ~"'yI L J O N M ° N (rp (gyp u 0) t` V Et N ~.t O '--I C to fA tr QI V 04 M m 'r ((D I- 100 N ° 0) C V 7 N O t` N N O u) O M a) V tb O O d' M N Q~ v m N N N r M O co (D M M N 'D 60 w U) ^y O N J V M C O 0 r-i m °m w (n O N N N N 00 v v U m c c L AAl1 M 0 4 d T N O _ y N y O N .C 'C `N t0 C L40 0) i~•11 r N 0) t0 (I1 C d 4) C V 4- U f6 O T . C Z" 0 N A S] N J N Y d E a r^> a t a E p o p° o U m Q J m a m Q J m z" m (A O co c- N m a0 M v O (D M (D M w N O O M . O N O M m (D m I~ R N (O / 7 m v (D (O N N (O l N co ? O N N M I- N rf1 M m m m (O v r N O O O M M ~ O) a c 6% (D (o o n M y v c U o) O m M M O ` r M m w ID M v C N (D o cc o0 c N N c N O Q U etf N FA 1- co M (O C O V N c0 M N I- O I- v j M m M 7 m M m Y N t- M N O N (D m a0 O m m M L c w» ~ M M r- (o M M (D O ~p co O r- m N t- O t M M O m m N o o (D d a) (h N m N v J (p M f~ u7 r m w o E C M m m r (D O • U m r Y') M M U) (n N (O N M OD I~ V N N Y v) N m O I~ N v U) N 3 N v o m M M R O n U a (o (O N N O O M m m D v M m c m 2 (D O O O m N (O ~ ~ 00 m m OD C C oo (A a0 (A (D 1- N (D r O 0 3 m (y N N w 04 co O N m V) E O c 'O M v m (oD m m r ~ N N n (O O U O th N N L L C r CO 1 N N N (A O f~ 7 M O Y m m m M N r ~ ~p M _ c0 1- V N fD O 3 m 1 m co N O ` (D o N m _ O m M M m wI(O <\\\\/F (D (O t0 J (`0 ' Z C O M N ` fA r O r` v O 1~ o N a) CN') Cr0 N v N v lL 3 3 U M M V N r D_ N M N m m 00 y E (D N m z t0 `p I~ M v M O M r C (n M ~1 - UU m r N (A V m N m o M m t N m 1- 1" O I- N N //^II 1~~1 j v (D N a0 I~ m m m 0 m m v V N V N LL m o (0 O N O m N ~ ~ • N UA N O ' N M r ' m n 'N M c0 1~ m m M N N v m (n (D O > m V N m (D m m O }~y1 (O M m N (D m m O 4- 64 ~.y- aD aD t0 t0 N n c m N (MD (N N m N M m r ` C (O I~ m. m O (O V (O -Ir V M N M N N ~O N 03 L (O eD M O OD t0 M m (0 (u (D 1l M V N U g ~i ct d rn o m I- m v v M o) 113 _ m O (n m (n V m O N m co O N N rl 7 O O 7:$ -1 LQ m r- (D - N r N O N (D M M M 4> O C'3 f/1 a (n (n o - v ' r • co M N v v J O y N co N O R W co O o N CL c o tt^ o I~1 M V 10 T N N ` N _ O w N 0 O O (0 N Q c c 9 m N° c.3 c y `0 01 c c o O aai N o m .I_+ m v C v a 'rn !O G w c « m T 's f0 ~r d c T (0 C(D (0 m N J N N> N VJ N N N N O C N N E N o O v>_ n o E o o o 0 o Zj Q CD Um Q J m amQ .o.) m2 48 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2010 11. Accumulated surplus The City's accumulated surplus is comprised of the following: /010 09 Capital fund 13 , 935,216 Operating fund 125,09 125,089 Equity in Veridian Corporation 69,231,568 67,894,665 Tangible capital assets 187,669,237 186,242,634 Post employment benefits liability (2,703,900 (2,536,100) Internal loans (1,123,4 ) (2,299,828) Net long-term liabilities (16,582 42) (14,219,970) WSIB benefit liabilities (1,67 ,898) (1,368,198) Reserves set aside for special purposes by Council Working capital 400,000 400,000 Self insurance 962,707 962,707 Replacement of capital equipment 1,090,998 854,338 Contingencies 1,277,278 1,471,140 Rate stabilization 16,579,632 16,565,777 City's share for development charge 3,695,929 1,946,216 Continuing studies 406,984 390,315 Vehicle replacement 149,158 237,547 Easement settlement D - 131,279 Eastern branch 130,000 105,000 Move Ontario 14,533 267,033 Capital asset management 165,000 90,000 Economic stabilization 830,000 1,235,000 Reserve funds set aside fors ecial purpose by buncil Recreation programs and acilities 145,483 215,350 Acquisition of tangible c pital assets 1,419,538 1,585,630 Squash courts 116 1,315 WSIB O 2,021,105 1,658,462 Animal shelter 173,850 162,553 Men's slow itc 136,359 137,587 274,897,232 271,190,757 12. Pension a eements The City akes contributio to the Ontario Municipal Employees Retirement Fund (OMERS), which is am Iti m o. plan, on ehalf of the members of its staff. The plan is a defined benefit plan which spec' Ies a am nt of a retirement benefit to be received by the employees based on the length of se ice an e f p Y. ontributions on a count of current service for 2010 were $2,219,285 (2009 - $2,117,873). 13 Trust Funds Trust funds dministered by the municipality amounting to $308,443 (2009 - $297,350) have not been included i the Consolidated Statement of Financial Position nor have their operations been included in the Co olidated Statement of Operations. Page 19 FOR DISCUSSION PURPOSES ONLY 49 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2010 14. Related party transactions Veridian Corporation The City of Pickering receives electricity and services from Veridian Corpo/Note corpor tion in which the City is a principal shareholder. 2009 Transactions Revenues Interest on promissory notes 1,588, 3 1,905,244 Property taxes levied 4 ,652 41,375 Expenses Electrical energy and services 1668,472 1,765,955 Balances Accounts payable and accrued liabilities 378,767 316,068 Promissory notes receivable 25,069,000 25,069,000 15. Guarantees In the normal course of business, the City e ters into agreem is which contain guarantees. The City's primary guarantees are as follows: (i) The City has provided indemnitie under I a re ents for the use of various facilities or land. Under the terms of these agree ents the Ci gr s to indemnify the counterparties for various items including, but not limite to, all liabilities, I s, suits, and damages arising during, on or after the term of the agreement. a maximum am nt of any potential future payment cannot be reasonably estimated. (ii) The City indemnifies al employees and a cted officials including Library employees and board members for various ' ems including, b not limited to, all costs to settle suits or actions due to association with th Ci ject to c ain restrictions. The City has purchased liability insurance to mitigate the co t of .al ture suits or actions. The term of the indemnification is not explicitly defin , but is Ii d to e period over which the indemnified party served as an employee or ected official t City. The maximum amount of any potential future payment cannot be r asonably estimat d. (iii) The City as entered into reements that may include indemnities in favour of third parties, such as pur ase and sale ag ements, confidentiality agreements, engagement letters with advisors and onsultants, outso cing agreements, leasing contracts, information technology agreements an se . e agreeme ts. These indemnification agreements may require the City to compensate urea s for I ses incurred by the counterparties as a result of breaches in representation and r lati ns o as a result of litigation claims or statutory sanctions that may be suffered by the counterp a consequence of the transaction. The terms of these. indemnities are not explicitly defined and t e maximum amount of any potential reimbursement cannot be reasonably estimated. The nature of t se indemnification agreements prevents the City from making a reasonable estimate of the maximum Xposure due to the difficulties in assessing the amount of liability which stems from the unpredictabMy of future events and the unlimited coverage offered to counterparties. Historically, the City has t made any significant payments under such or similar indemnification agreements and therefor no amount has been accrued in the balance sheet with respect to these agreements. Page 20 FOR DISCUSSION PURPOSES ONLY 50 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2010 16. Contingent liabilities Litigation The City has been named as a defendant in certain legal actions in which dama es have been so ht. The outcome of these actions is not determinable as at the date of reporting d accordingly, no provision has been made in these financial statements for any liabilities whi result. 17. Budget figures The 2010 Budget adopted by Council on March 29, 2010 was not pr ared on a basis nsistent with that used to report actual results. The budget was prepared on a dified accrual ba ' while Public Sector Accounting Standards require a full accrual basis of acco ting. The budget gures treated all tangible capital asset acquisitions as expenditures and did not ' clude amortizatio expense on tangible capital assets. As a result, the budget figures presented in th Statements of O rations and Change in Net Financial Assets represent the budget adopted by Cou cil March 29, 10 with adjustments as follows: • 21~~ 010 2010 Counci Non TCA Budget approv d expenditure presented in bu get from cap' al Amortization statements Revenue Taxation /48 - 48,819,182 Capital 4 - 13,638,244 Other 7, , - - 14,557,434 77,014,860 - - 77,014,860 Expenditures General government 13,6 ,633 529,500 588,072 14,787,205 Protection to persons an pro erty 18 11,679 412,250 581,448 19,805,377 Transportations ervice Q~7, 551,157 245,000 3,548,307 11,344,464 Environmental servi es 213,245 - 1,964,279 2,177,524 Social and family ervices 458,620 10,000 - 468,620 Recreational a cultural services 19,282,848 8,708,600 3,042,980 31,034,428 Planning and evelopment 3,501,297 - - 3,501,297 63,488,479 9,905,350 9,725,086 83,118,915 Annuals rplus 13,526,381 (9,905,350) (9,725,086) (6,104,055) Capita xp ures (21,205,145) 9,905,350 - (11,299,795) Tran er om r rve d serve 4,476,040 ividend from rid' n Corporation 2,009,000 Principal repaym t of debt (3,243,676) Debt proceeds 4,312,400 Prior year sur lus 125,000 18. Compa tive figures Cert n of the prior year comparative figures have been reclassified to conform to the current year's pr entation. Page 21 FOR DISCUSSION PURPOSES ONLY i The Corporation of the City of Pickering 51 Notes to the consolidated financial statements December 31, 2010 19. Segmented information The City of Pickering is a diversified municipal government that provides a wide ra a of services to i residents. Distinguishable functional segments have been separately disclosed i the segmented information. The nature of the segments and the activities they encompass are s follows: General Government This item relates to 'revenues and expenses of the municipality itself and ann b ectly tributed to a specific segment. Protection to Persons and Property Protection includes fire services, animal control, bylaw services, ilding inspection nd enforcement of the building code to,ensure the safety and protection of all citiz s and their prop y. Public Works Services Public works includes construction and maintenance of t C' s dways ncluding snow removal, sidewalk repairs, street lighting, maintenance of the sto wate tem a d environmental services. Social and Family Services Social services for assistance or services for sen' rs. Recreation and Culture Services Recreation and cultural services include re eation programs, aintenance and rental of facilities and parks, operation of the City's museum an lib services. Planning and Development Planning and development provide a number of s rv' es including municipal planning and review of all property development plans. Segmented information has b n provided in the ollowing pages. O O Page 22 FOR DISCUSSION PURPOSES ONLY N 5 O 'a 69 Cprl~rtOOMMN hCf>MrrhCO r d OOOhtptp00NMr of NMrNMh rn O ~OOONMNOONOO rrCOMtOM~ m d' I r: (6 1: t6 a M 00 O I r: M CO NtO~tOMI~Mrr O~OOMrO ~ OtOOMO~ OM Md`NCOMtOh N ethN MM le ts rtnMMrrM W) G I~ r I~ U O CK? NhhM ' OMnO P<O tO 00 NC'9 L 41 nn~00 MOrM MO MrCD 00 40 0p 0 00 N O 1~ 0 M r OMrOr h hONM h4Vor; 406 d C f`M~ hMLO M rWMWNIt V le O dt NM Mvmwmwh C LO M N N h d C4 4 C N tH CO CO . . . . . . W "r-v ' r V 00 m r- r- 04 CO r 1~~N ^toCD `•E.V of Ca r I- M co N C4 L6 c 0) Mr O Nr Mt-w r r V W r N N N O -Ca+EA ' w ' O NM I- rr ' MW C C le a) NCO NCOM le coN m d I, I- OOm hMLo Mr00 ME O CD CO to OrM co r 0 0 L n M M M co •C O r r ~ N Ot0 t` O C ' N N N m y a a C (D 619. hM MN-4 MOeovCONQo OIv R r O O~ r N Ii o C M R N M CO t` N N M t6 00 !t MMr Or~OCOMr ap. V t0 ti tON nrMrhtO~ ~N Mtn MMMMOI-N O d'C NO 00 NO N N4 cn r N r fw O a N NtA ~O ' tO ' t0 ~rvMtnM a Y O) 00h O N NtOMNMO z 0 Md' W _OM rM_N10rN O 3 rO 00r htD CO O COO ti Cl O CO et t0M Or coM rd'NO C) Nr MO rM Cl MCnrMO U y r M !t M M N M o p r O ~ a O LL V C N 40 N N' O M co 00 le co CO co • ICI O C le 00 I, M M O M co le LO O y y 00 M I~ M M N r M y O r ti t- O M M r r M ~F•I C CL CO co O O CO O tO O v L r $ N CO r Co O a r r O 4 'IL) O U~ ct ~.y 'V _ ~..I = 'a rn ~..i 0i a~ O ~ 7C C L" = Q C m m - O ` 0 m • p o cn azi > rn O CL C: a) C: CM , > mom Cl) ~"I w rn d> M O c a> in N x Q O N c m m-0o~c t3CNC aio n p7 '0 m 41- c m .a O N V -a > 15 m N ' C a) 76 a) M .d+ ai rn s O =3 U) O N cn cn m U N M M, O C a) O C U v O O M CL C x> C C. L O C f6 d p N d a) O > m a> o CT Fu m a~ m o E w r, a,CD~~iz)L)w00 o XU) C)<O o ~ N w H w Hz h z Q 0; r 53 O 'D ell vIl- NNOfl- 00 It It a0 '7 TmNI~ I~ N O O (OOCD CD wNU")mm mm'ITNO000 O OIQ MONMf-M~ 0O)- (OCOM m N a OCOOCO Itm0NI- 0MCn000nl-- O d co CO I- CO I- O "t CO rt I- M V) CO O V O 0 V* co 0 1- CS') 'j, tl- 0- co ~ d• CO LO co Lr-: 0 N V vi 6 O L6N W - 6 6 U =EA tnN N l~ ' 1-0000 MO 00001l- m Cl) C l) O N N 6) O Cl) N LO LO 00 1-- O co E t l-C+') C M M M O N N C O C n C'! A N O N MOON 0dt00co M001-CC) tol- (D C: E O rl- 00 O I- O) LO co N C•) w N M N N 00 Cn.- ON -MMCnNW"T > O V N OO r_ cM N L6 r c{ O 'IT LO a >.rnCR I,- M ' ' ' ' ' 00 1-- 000 ' ~tOO) c= N Ct7N 000 MNO N000 C6 E .U co ~ UI C) N CO V N d' v ~ u I-OO CnN COMA NO .U r- - CO CO O M O N O N V CO Cn -O ~6F). C•.) ~N It 0UeM (0 MO (6 ~ 6) CO U-) LO CO CO I- CO 0) O O CO O CO M P_ O N «O I- M~ . N N a) N 6) p N O N ~a c Cu ER F~,t (.6 ' t CO O) I- V Lo CO T M CO m .r O co Cl) CO O w 00 O t` M CA O O co C\\J"' CO 00 O CO 00 _ N M 'cY t co co LO O J O Cn Cn cM f~ N LO 0 z 0,0 O~ O M M 00 In M LO M O O O co m O C Cn N N U) O N (n O a Y co ' O ' CO O O) In In a d 00 00 M V V CO O co V z .U O OD O t` CO n N L O It 00 O Z NN O'tt MN Ld co COOMCOO co O O fl- CO M O CO In (O U upi .0 Mn ~0 OCO M'ctNN • ICI -0 N M M Cl) OD o IL/I+M ° W W O O ~ V p N Cfl r- O ' ' ' ' ' CO I- Ict U') CO N • 1••1 O c 'C 00 rn 00 LO ~ M- v O M 'U cn d CO ~t NCO C, (A Cn Cl) I- 4* O N 2 stn MO co ~(TOM COCO 0 0- a N ON 0~'It.(fl r- tf) O ~ (6 ~ CCS U 4-0 ct O 7:$ c U ca ca C'~ = U U - d N U) O N a(n O a) a) 0 = ~i Q f~6 C CD~~ U) cl C: ~QU C rl ` m .L N . > d C w a 0) ~I N 'o rn ;o o 3 a N <n x O O m p _cc ac c °a) m c ctsa o N U O L V) > C6 N N' C O U) M V) 7a) O U 4- f X C N O C f6 d p N d f0 (U O 6 f6 (9 r l > E -Fu (1) (6 co O 0- x02000 o m !Y cn W H Z ` Q cr; r 54 Financial statements of The Corporation of the City of Picked g Trust unds December 31, 2010 O 00 O i FOR DISCUSSION PURPOSES ONLY I 55 The Corporation of the City of Pickering Trust Funds December 31, 2010 Table of contents Independent Auditor's Report 1 Statement of financial position 2 Statement of financial activities and fund balances 3 Notes to the financial statements 4 D O O I FOR DISCUSSION PURPOSES ONLY 56 Deloitte & Touc a LLP 5140 Yonge reet Suite 1700 Toronto M2N 61-7 Canad Tek 416-601-6150 F :416-601-6151 .deloitte.ca Independent Auditor's Report To the Members of Council, Inhabitants and Ratepayers of The Corporation of the City of Pickering We have audited the accompanying financial statements of The Corpo tion of the City f Pickering Trust Funds, which comprise the statement of financial position as at Dec ber 31, 2010, a d the statement of financial activities and fund balances for the year then ended, and summary of sig ficant accounting policies and other explanatory information. Management's Responsibility for the Financial Statemen Management is responsible for the preparation and fair pr sentation o es financial statements in accordance with Canadian generally accepted accounti principles, and r such internal control as management determines is necessary to enable the pr aration of finan 'al statements that are free from material misstatement, whether due to fraud or erro . Auditor's Responsibility Our responsibility is to express an opinion o thes ial s tements based on our audit. We conducted our audit in accordance with Ca adian g al y cepted auditing standards. Those standards require that we comply with ethical requi ements and an nd perform the audit to obtain reasonable assurance about whether the financial atements are fre from material misstatement. An audit involves performing proc ures to obtain evidence about the amounts and disclosures in the financial statements. The proced es selected depe on the auditor's judgment, including the assessment of the risks of material misstate ent of the finan 'al statements, whether due to fraud or error. In making those risk assessments, ea it siders in mal control relevant to the entity's preparation and fair presentation of the financia stat r r_to design audit procedures that are appropriate in the circumstances, but not fo the purpo f e ressing an opinion on the effectiveness of the entity's internal control. An au t also includes e aluating the appropriateness of accounting policies used and the reasonableness of ac unting estimates ade by management, as well as evaluating the overall presentation of the nancial stateme s. We believe that e audit evidenc we have obtained is sufficient and appropriate to provide a basis for our audit opt 'on. Opinion O In our inion, the fi n 'al statements present fairly, in all material respects, the financial position of The orporation of the ity of Pickering Trust Funds as at December 31, 2010 and the results of its, op ations for the ye then ended in accordance with Canadian generally accepted accounting principles. Chartered Ac ountants Licensed P lic Accountants June 13, 11 FOR DISCUSSION PURPOSES ONLY 57 The Corporation of the City of Pickering Trust Funds Statement of financial position as at December 31, 2010 2010 2009 Assets Investments /35 277 51 Interest receivable •1 ,999 3W.443 7,350 Trust Fund osition 308A 297 350 D O O Page 2 FOR DISCUSSION PURPOSES ONLY 58 The Corporation of the City of Pickering Trust Funds Statement of financial activities and fund balances year ended December 31, 2010 2010 /2009 Revenues Interest 1 093 1 Expenditures Provincial payments - 1,827 Administration charges 96 1,923 Net revenues 11,0 3 9,280 Fund balance, beginning of year 297 50 288,070 Fund balance end of year 30t,443 297,350' D O O Page 3 FOR DISCUSSION PURPOSES ONLY 59 • The Corporation of the City of Pickering Trust Funds Notes to the financial statements December 31, 2010 1. Accounting policies The financial statements of The Corporation of the City of Pickering Trust Fun are the represe ations of management prepared in accordance with Canadian generally accepted co ting principl using accounting standards for Not-for-Profit Organization. Significant accounting policies adopted include: Basis of accounting Revenues are recorded in the period in which the transactions or vents occurred th t gave rise to the revenue. Expenditures are reported on the accrual basis of accountin which recognizes xpenditures as they are incurred and measurable as a result of the receipt of good or ices and t creation of a legal obligation to pay. Investments Investments are recorded at cost. The cost of inve ments approxima s their fair value. 2. Future accounting changes In December 2010, the CICA issued anew ccounting framew rk applicable to Not-for-Profit. Organizations. Effective for fiscal years b in ing on or after anuary 1, 2012 Not-for-Profit Organizations will have to choose betw n In I Fi ancial Reporting Standards (IFRSs) and Canadian accounting standards for N -for-Pro i rgani tions, whichever suits them best. Early .adoption of these standards is perm ed. The Tru Fu ds currently plan to adopt the new accounting standards for Not-for-Profit Organi ations for its fisca year beginning on January 1, 2012. The impact of transitioning to these new stand ds is expected to a minimal. 3. Dorothy Card Estate The City of Pickering ad nis a trust fun for the Dorothy Card Estate for the care and upkeep of the destitute elderly. The f d an is corn rised of investments and accumulated interest amounting to $308,443 (2009 - $29 ,350 4. Statement of ca flows A statement o cash flows has no been presented as the information is readily determinable from the financial sta ments presented O • Page 4 FOR DISCUSSION PURPOSES ONLY 60 Financial statements of City of Pickerin Public Library oard December 31, 2010 D O . O FOR DISCUSSION PURPOSES ONLY 61 City of Pickering Public Library Board December 31, 2010 Table of contents Independent Auditor's Report ............................................................................................................................1 Statement of financial position 2 Statement of operations 3 Statement of change in net debt ..........................................................................:.............................................4 Statement of cash flows 5 Notes to the financial statements 6-9 D O O FOR DISCUSSION PURPOSES ONLY 62 Deloitte & Touc e LLP 5140 Yonge reet Suite 1700 Toronto O M2N 61-7 Canada Tel: 16-601-6150 F :416-601-6151 .deloitte.ca Independent Auditor's Report To the Members of The City of Pickering Public Library Board, Members of Council, Inhabitants and Ratepayers of the City of Pickeri We have audited the accompanying financial statements of the City Pickering Publi Library Board, which comprise the statement of financial position as at December 1,20H, and the tatements of operations, change in net debt and cash flows for the year then e ded, and a sum ry of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Stateme is Management is responsible for the preparation and fair esentation of th e financial statements in accordance with Canadian public sector accounting st dards, and for s ch internal control as management determines is necessary to enable the eparation of fina cial statements that are free from material misstatement, whether due to fraud ore r. Auditor's Responsibility Our responsibility is to express an opinion these n al tatements based on our audit. We conducted our audit in accordance with nadian gen lly accepted auditing standards. Those standards require that we comply with ethical re irements and pla and perform the audit to obtain reasonable assurance about whether the financia statements are fr e from material misstatement.' An audit involves performing pro edures to obtain idence about the amounts and disclosures in the financial statements. The proce res selected dep nd on the auditor's judgment, including the assessment of the risks of material missta in f the fina cial statements, whether due to fraud or error. In making those risk assessments, the dit c ide s ' temal control relevant to the entity's preparation and fair presentation of the financ' 1 statem in o der to design audit procedures that are appropriate in the circumstances, but not r the purpose f pressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluati g the appropriateness of accounting policies used and the reasonableness of a ounting estimat made by management, as well as evaluating the overall presentation of th financial statem ts. We believe th the audit evide e we have obtained is sufficient and appropriate to provide a basis for our audit op" io Opinion In our opinion, the fina ial statements present fairly, in all material respects, the financial position of the Ci of Pickering Pub c Library Board as at December 31, 2010 and the results of its operations and its c flows for they ar then ended in accordance with Canadian public sector accounting standards. Chartered ccountants Licensed ublic Accountants June 1 , 2011 FOR DISCUSSION PURPOSES ONLY 53 City of Pickering Public Library Board Statement of financial position as at December 31, 2010 2010 2009 Financial assets Cash 2,2 0 2,31 Accounts, receivable 80 9 Due from the Government of Canada ,456 - Due from the City of Pickering 60 140 1 564 3W,436 50133 Liabilities Accounts payable and accrued liabilities 388,920 174,851 Deferred revenue 13,913 Due to the Government of Canada 351 Post-employment benefits liability Note 2 119, 0 19,200 50 420 308,315 Net debt 1 2 984 158,182 Non-financial assets Tangible capital assets (Note 4) Z1,535,730 1,993,685 Prepaid expense 23,484 38,982 1,559,214 2,032,667 Accumulated surplus Note 5 1,416,230 1,874,485 D O O Page 2 FOR DISCUSSION PURPOSES ONLY i .64 City of Pickering Public Library Board Statement of operations year ended December 31, 2010 2010 2009 Budget (Unaudited) Note 6 Revenue City of Pickering grants 4,746,464 X4,5, /4,6,315 Federal grants - Province of Ontario grants 135,696 Fines and other revenue 218 715 Total revenue 5,100,875 5,092,544 5,039,411 Expenses Operating Salaries Salaries and wages 3, 43 52 3,0 ,779 2,969,487 Fringe benefits 70 1 52,302 630,094 3,7 0,728,081 3,599,581 Material, supplies and utilities Books 87,000 96,574 104,841 Utilities 189,75 172,463 179,631 Other supplies 61, 0 69,447 60,586 33W58 . 338,484 345,058 Services Repairs and mainten/ance D 296,516 305,257 374,551 Insurance 45,990 43,894 38,845 Travel 4,500 4,443 5,480 Consulting and profe36,090 37,165 77,510 Advertising 12,000 17,526 20,035 Conference 7,200 6,061 8,485 Postage 6,000 4,248 5,587 Telephone 46,394 70,618 49,698 Seminars and educa26,858 15,606 18,748 Vehicle repairs and 5,200 2,708 3,248 Miscellaneous 88,757 85,314 49,390 575,505 592,840 651,577 Capital related Amortization /xpense 895,188 891,394 968,682 Total o eratin a ses 5,553,713 5,550,799 5,564 898 Annual d cit (452,838) (458,255) (525,487) Accum ted sur lu~ i nin of ear 1,872,322 1,874,485 2,399,972 Accu ulated surplus. d of year 1,419,484 1,416,230 1,874,485 Page 3 FOR DISCUSSION PURPOSES ONLY 65 City of Pickering Public Library Board Statement of change in net debt year ended December 31, 2010 2010 2009 Budget (Unaudited) Note 6 Annual deficit (452,838) 45 255 525 87 Acquisition of tangible capital assets (442,350) 43 39) 42,295) Amortization of tangible ca ital.assets 895,188 968,682 452,838 457,95 526,387 Change in prepaid expense 15,498 9,745 Change in net debt 15,19 (8,845) Net debt beginning of year - 058,11 2 (149,337) Net debt end of year 142 84 (158,182) D O O Page 4 FOR DISCUSSION PURPOSES ONLY City of Pickering Public Library Board /67 Notes to the financial statements December 31, 2010 1. Significant accounting policies The financial statements of the City of Pickering Public Library Board (the "Library oard") are the representations of management prepared in accordance with Canadian public s for accounting standards established by the Public Sector Accounting Board (PSAB) of the C adian Institute of Chartered Accountants. Significant accounting policies adopted by the Library Board are as follow . Basis of accounting (a) Accrual basis of accounting Revenues and expenses are reported on the accrual bas' of accounting. a accrual basis of accounting recognizes revenues as they are earned and easurable; expen es are recognized, as they are incurred and measurable as a result of the rec pt of goods and rvices and the creation of a legal obligation to pay. (b) Non-financial assets (i) Tangible capital assets Tangible capital assets are recorded at ost less accumu ted amortization. Cost includes all amounts that are directly attributable o acquisition, dev lopment or betterment of the asset. The cost of the tangible capital ass is amortized on straight-line basis over the estimated useful life as follows: Machinery & equipment 2 to 25 ears Information technology hard re D to years Library collection material 4 t 7 years Furniture and fixtures 1 to 50 years One-half of the annu amortization is c arged in the year of acquisition and in the year of disposal. Other major asse including the Lib ary buildings are owned by the City and are not reflected in these financi statements. (ii) Contribution/ on on of tangibl capital assets Tangible apital ass rece' ed as contributions or donations are recorded at their fair value at the d e of receipt, a d at fair value is also recorded as revenue. Inta ible assets I ngible assets ar not recognized as assets in. the financial statements. (c) Defe ed revenue D fer nue re resents amounts which have been received for expenditures not yet incurred. hes ou s wi be recognized as revenue in the fiscal year the related items are purchased. ( Post empl e t benefits The present alue of the cost of providing employees with future benefits programs is recognized as employee earn these entitlements through service. Any actuarial gains or losses are amortized on a straig -line basis over the average remaining service period (ARSP) of employees. The actuary estima d the ARSP to be 15 years. (e) Us of estimates e preparation of financial statements in conformity with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amount of assets, liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. Page 6 FOR DISCUSSION PURPOSES ONLY - - I City $ of Pickering Public Library Board Notes to the financial statements December 31, 2010 2. Post employment benefits liability The Library Board makes available to qualifying employees who retire before the a e of 65, the opportunity to continue their coverage for benefits such as post-retirement exte ded healthcare benefits. Coverage ceases at the age of 65. The Library Board also provides f time and perma nt part-time employees a sick time entitlement and any unused entitlement.is a u fated year to ear. This accumulated entitlement is not vested and therefore is forfeited at the 'm retirement termination. The post-employment benefits obligation at December 31, 2 0 a d hang s in the accrued benefit obligation for the 2010 fiscal year was determined by ctuarial valu n repared as at January 1, 2008. Information about the Library Board's post employment benefits li ilities is as follow . 2010 2009 Post-employment benefits liability, beginning of year 1.19,200 120,100 17,500 16,600 Current service costs Amortization of actuarial losses 3,900 3,900 Interest expense 9,300 9,500 Benefits aid during the year 30,400 30,900 Post-employment benefits liability, end of ea 119,500 119,200 2010 2009 D $ $ Accrued post-employment benefits bligation 162,900 166,500 Unamortized actuarial losses 43,400 47,300 Post-employment benefits liabi i 119,500 119,200 The main actuarial assump 'ons employed in a actuarial valuations are as follows: (a) Discount rate The present valu as a e -er 1, 2010 of the future benefits was determined using a discount rate of 5.5% ( 09-5.50o (b) Dental cost The curr t dental cost tren cost at January 1, 2008 was 4.0% per annum. (c) Healt costs He th o is were as med to increase at 8.5% in 2010 and decrease by 0.5% increments per year t an i rate 5% per year in 2017 and thereafter. 3. P nsion agre n The Library Boar makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS), whi is a multi-employer plan, on behalf of eligible members of its staff. The Plan is a defined bene ' plan that specifies the amount of the retirement benefit to be received by the employees based on t length of service and rates of pay. Contribu ons in the amount of $166,343 (2009 - $163,185) were paid to OMERS on behalf of its memb rs during the year. Page 7 FOR DISCUSSION PURPOSES ONLY 60, City of Pickering Public Library Board Notes to the financial statements December 31, 2010 4. Tangible capital assets Machinery Information Library /iture and technology collection e ui ment hardware materials 010 Cost Balance beginning of year 9,992 405,830 5,376, 7 29 2 6,084,521 Additions during the year - - 43 ,439 433,439 Disposals during the year 26,335 26,335 Balance end of year 9,992 379,495 5/810,056 292 82 6 491 625 Accumulated amortization Balance, beginning of year 500 313,511 3,692,006 84,819 4,090,836 Amortization 999 38,6 845,873 5,842 891,394 Accumulated amortization on disposals - 335 26,335 Balance end of year 1,499 45,856 7,8 9 90,6611 4,955,895 Net book value 8,493 53,639 1,272 77 201,421 1,535,730 Machinery /Itnforma tio n /ma brary Furniture and echnogy ction and equipment hardware rials fixtures 2009 Cost Balance beginning of year /9,992 D 405 30 6,115,387 292,082 6,813,299 Additions during the year - 432,303 - 442,295 Dis osals durin the ear 1,171,073 - 1,171,073 Balance end of year 9,992 /405,830 5,376,617 292,082 6,084,521 Accumulated amortization Balance, beginning of year /500 262,394 3,951,856 78,977 4,293,227 Amortization 51,117 911,223 5,842 968,682 Accumulated amortizati on dis osals 1,171,073 1,171,073 Balance, end of year 500 313,511 3,692 006 84,819 4,090,836 Net book value 9,492 92,319 1,684,611 207,263 1,993,685 O Page 8 FOR DISCUSSION PURPOSES ONLY 70 City of Pickering Public Library Board Notes to the financial statements December 31,-2010 5. Accumulated surplus Accumulated surplus consist of the following: 2010 009 Invested in capital assets 30 993,685 Post employment benefits liability 119 119 200 1,416,230 1,874,485 6. Budget figures The 2010 budget was not prepared on a basi/expensen nt with hat used to repo actual results. The budget was prepared on a modified accrual e pu is ctor accoun 'ng standards require a full accrual basis of accounting. The budget fite all n le capit asset acquisitions as expenditures and did not include amortization to ' capit assets. The following provides reconciliation from theapproved budbudget n ers resented in the financial statements. 2010 TCt n TCA 2010 budget Council approved y ex nditures presented in bud t o s om capital Amortization statements Revenue City of Pickering 4,956,464 O 0) - 4,746,464 Federal and provincial grants 375,6 (2 ,0 0) - 135,696 Other 218, 15 - - 218,715 5,55 875 4 000 - 5,100,875 Expenditures Salaries 3,745,262 - 3,745,262 Material, supplies and utilities Qle337,758 Services 68,100 - 575,505 Amortization 895188 895,188 4 590 25 68,100 895,188 5,553,713 Annual surplus L.450) (450,000) (68,100) (895,188) (452,838) Capital expen ures/ additions 450,000 68,100 (442,350) • O Page 9 FOR DISCUSSION PURPOSES ONLY city oo Report To Executive Committee 71 PICKERING Report Number: CST 25-11 Date: June 13, 2011 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Fair Wage Policy Recommendation: 1. That Report CST 25-11 of the Director, Corporate Services & Treasurer regarding Fair Wage Policy be received for information; and, 2. That Council adopts Recommendation 1 or 2 of Report CS 30-10 of the Director Corporate Services & Treasurer attached hereto. Executive Summary: In April, 2010, Council received correspondence 29-10 from Terry Dorgan, Business Agent of the International Brotherhood of Electrical Workers (IBEW) Local 894 and representative for Central Ontario Building Trades regarding implementing a Fair Wage Policy. Council passed the following Resolution: "The CORR. 29-10 from Terry Dorgan, Business Agent and representative for Central Ontario Building Trades requesting the City of Pickering review their Fair Wage Policy By-law in order to update their policy to mirror other municipalities such as Oshawa and Clarington be referred to staff for report prior to Council's summer recess." In June 2010, the Director, Corporate Services & Treasurer presented Report CS 28- 10 to the Executive Committee and the following Motion was passed: "That Report CS 28-10 be referred back for further investigation and that staff report back at the July 12 meeting of Council with a Fair Wage Policy." . After initial discussion, it was agreed by all that more time was required and that work on this subject would continue over the summer. At the Joint Planning & Development and Executive Committee meeting of September 7, 2010, the Committee considered Report CS 30-10 regarding a Fair Wage Policy. The Committee passed the following Motion: "That Report CS 30-10 be referred back to staff for further investigation." l Report CST 25-11 June 13, 2011 Subject: Fair Wage Policy Page 2 72 At the Planning & Development and Executive Committee meeting of September 7, 2010, Mr. John Mutton, President of Municipal Solutions appeared as a Delegation on the subject. Mr. Mutton, Mr. Dorgan and Mr. Garth Cochrane, Business Manager of the United Association of Plumbers, Steamfitters and Welders (UA Local 463) also appeared as a delegation at the September 13, 2010 Council meeting. After a question and answer period, Council proposed continuing discussion in the New Year. In early 2011, staff met on several occasions with the proponents of a Fair Wage Policy, namely John Mutton and Terry Dorgan. In addition, the Chief Administrative Officer and the Director, Corporate Services & Treasurer met with a representative. of Independent Project Managers (IPM). Further enquiries were also made of the University of Ontario Institute of Technology, Durham College as was suggested. The University has not adopted such a policy while the college has. Staff continue to be unable to ascertain benefits to the City should such a Policy be adopted. Furthermore, setting a wage schedule may create the possibility of adverse financial effects on pricing tendered or quoted to the City on Industrial, Commercial and Institutional (ICI) projects. In conclusion, there does not appear to be any additional clear and compelling reasons for or against adopting a Fair Wage Policy beyond that already expressed in the aforementioned Report CS 30-10. Therefore, the original Recommendations of Report CS 30-10 as attached are presented for the consideration of Council. Financial Implications: There are no financial implications associated with the first recommendation. However, should the second Recommendation be adopted, staff costs are inherent and any future additional costs will possibly be revealed over time. Sustainability Implications: There are no sustainability implications associated with this report. Background: Over the last months, the Chief Administrative Officer (CAO), the Director, Corporate Services and Treasurer and the Manager, Supply & Services have met with Mr. Mutton and Mr. Dorgan on several occasions to discuss all aspects of a Fair Wage Policy. Continued discussions on this matter took place in January, February and March, 2011 and staff obtained comments from UOIT and Durham College and met with a consultant having experience in fair wage policy projects. The complete discussion of all aspects of the subject may be found in Report CS 30-10 (attached) and Report CS 28-10 and are, therefore, not repeated here. Report CST 25-11 June 13, 2011 Subject: ' Fair Wage Policy Page 3 Developing rates of pay, vacation pay, fringe benefits, weekly hours of work for a multitude of trades and work classifications to set into a fair wage schedule which contractors are required to abide by is a large administrative task. By example, the City of Toronto's fair wage schedule contains approximately 85 work classifications. The City of Hamilton's fair wage schedule contains approximately 150 work classifications and approximately 595 wage rates. For ICI projects, Clarington and Oshawa utilize approximately 40 wage rates based on prevailing market conditions. After consideration of additional information and discussions, staff does not recommend the inclusion of a fair wage policy in its Industrial, Commercial and Institutional (ICI) construction contracts or any other area in which such a policy could be applied. Should Council adopt a Fair Wage Policy, a further report to Council may be required for the purposes of clarification in establishing a Fair Wage Schedule and Policy Procedures. Attachments: .1. Report CS 30-10 Prepare By: Approved/Endorsed By: Vera A. Felge acher Gillis A. Paterson, CMA' Manager, Supply & Services Director, Corporate Services & Treasurer CSCMP, CPPO, CPPB, C.P.M., CMM III Copy: Chief Administrative Officer Recommended for the consideration of Pickering Cit ouncil d",30, Z oil Tony Prevedel, P. Eng. Chief Administrative Officer 1 ATTACHMENT#TO REPORT# ~E --?5- 1► k : 7 4eity o~ Report to Executive Committee I RI Report Number: CS 30-10 203 Date: September 7, 2010 i From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Fair Wage Policy Recommendation: 1. That Report CS 30-10 of the Director; Corporate Services & Treasurer regarding j Fair Wage Policy be received for information; OR 2. That Report CS 30-10 of the Director, Corporate Services & Treasurer be received; and, the Council of the City of Pickering implement a Fair Wage Policy as follows: a) The attached Fair Wage Policy for Industrial, Commercial and Institutional Contracts exceeding $1 million to require that all contractors bidding on contracts for the City provide wages, benefits and hours to their employees in compliance with the City's Fair Wage Policy be adopted; b) The Director, Corporate Services & Treasurer be authorized to establish and implement a Fair Wage Policy process and undertake any required actions; c) That. the appropriate officials of the City of Pickering be given authority to give. effect thereto; d) The Director,. Corporate Services & Treasurer be authorized to approach the appropriate staff of the City of Toronto for compliance investigation and enforcement purposes and execute any necessary arrangements or, . agreements. Executive Summary: At the Executive Committee Meeting held on June 14, 2010, j the Committee passed the following: i "That Report CS 28-10 be referred back for further investigation and that staff Q' report back at the July 12th meeting of Council with a Fair Wage Policy." In the interests of obtaining all relevant information and having discussion with the parties, it was agreed with the Mover that reporting back would occur in September. A copy of Report CS 28-10 is attached. 1 75 Report CS 30-10 September 7, 2010 Subject: Fair Wage Policy Page 2 904 Upon further investigation and careful consideration, staff does not recommend the inclusion of a fair wage policy for its Industrial, Commercial and Institutional (ICI) construction contracts or any other area in which such a policy could be applied. The City is already committed to provide best value to the'taxpayers of the City of Pickering through the provision of open and fair, equitable, accessible and competitive bidding processes, as embedded in the Council approved Purchasing Policy. Mandatory levels of wages to be paid on City contracts would appear to be contrary to these objectives. In staffs opinion, it would appear that adopting such a policy could have the effect of forcing up the costs of City tendered projects. This in turn could have the ultimate effect of adversely affecting the small to medium size businesses bidding on these projects that the City so strongly supports. Finally adopting such a policy, Pickering, due to its geographic location and proximity to Toronto, would be.part of that wage group, most likely the highest in the Province. However, the City of Toronto has not adjusted its fee schedule since 2004 which, in this writer's opinion, says much about the cost, effectiveness and benefits of having such a policy. Generally speaking municipalities have not undertaken a role in mandating the level of wages to be paid to workers for parties bidding on municipal contracts. Unions, the Province and private employee/employer contracts do that across Ontario. Should Council wish to implement such a policy under Recommendation 2, the actual policy is attached. Financial Implications: There are no financial implications associated with the first Recommendation. However, should the second Recommendation be adopted, staff costs are inherent and future additional costs may be revealed. Sustainability Implications: There are no sustainability implications associated with this report. Background: Further Investigation Report CS 28-10 provided some background information for Council. During the discussion at the Council meeting of Jun 24, 2010 several .questions were asked or items raised that were to form part of this report. The following are staffs responses as well as the results of further investigation into this subject. 76 Report CS 30-10 September 7, 2010 Subject: Fair Wage Policy Page 3 205 A response to the question - what Region meant by "select number of recipients" The question was asked as to what did the Region of Durham mean when its report on this subject referred to "a select member of recipients". The reference is to be those companies bidding on Regional contracts. An extract from that report is reproduced below. The Report to the Regional Finance and Administration Committee on April 15, 2009, in the closing paragraph of the report stated in part that: "The Region should ensure consistency and equal treatment for all potential suppliers of goods and services to the Region and thus refrain from granting any type of preferential treatment to a select number of recipients through the implementation of the proposed Fair Wage Policy. As such, the Region does not believe that it should play a role in mandating the wages to be paid to workers by parties wishing to bid on Regional contracts; especially for one particular area of services/goods (ICI construction) delivered to the Region." Comment - a Fair Wage Policy wouldn't cost us anything. It was stated that a fair wage policy wouldn't cost the City anything. However, it would appear that there is the very great and real potential to increase contract due to our close proximity to Toronto. Some jurisdictions, with the assistance of the City of Toronto's Fair Wage Office, develop wage schedules based on local collective agreements according to the boundaries set by the Ontario Labour Relations Board (OLRB) Area Schedule. Pickering falls within Area 8 in Construction which includes, but is not limited to, Metropolitan Toronto, Peel and York Regions. The way the OLRB operates, standard. labour board jurisdiction requirements places: Pickering in this area and is more consistent with how Toronto determines fair wage. A wage schedule for Pickering would be based on collective agreements set within the greater metropolitan Toronto area and would presumably be higher than wage schedules in an area outside of the area. Clarington and Oshawa fall into Area 9 of the OLRB - outside of the Toronto area. Toronto's Fair Wage Office (TFWO) investigates complaints (45 in 2009) and takes enforcement action when it is determined that a contractor has failed. to pay its workers the prescribed hourly wage rates, vacation and holiday pay and.applicable amount for fringe benefits shown. in the current fair wage schedule. Investigations can involve looking into contractor and subcontractors payroll records. To undertake an investigation or an audit for another jurisdiction it is likely that TFWO would have to develop a business case, review associated costs, establish a fee schedule for time Report CS 30-10 September 7, 2010 77 Subject: Fair Wage Policy Page 4 6 billed for this service and prepare a report back to their City of Toronto Council for approval. Administrative costs as a result of including and enforcing fair wage policies in City Industrial, Commercial and Industrial (ICI) construction contracts could be significant. Even though a base investigation fee to help recover administrative and audit-related costs associated with a Registered Complaint, this fee does not accurately represent the total costs associated with research and review of policies, going onto job sites, interview workers, wage schedules and costs associated with inspections and audits during the period of the construction project. While the City can recover the base investigation from either the complainant or the party named in the complaint, any costs in excess of the base investigation fee must be pursued by City staff. Also there are costs associated with utilizing City staff resources in monitoring policy compliance and conducting complaint-driven investigations arising from allegations which could prove to be unsubstantiated: Implementing a Fair Wage Policy also places the City in the role as a third party arbiter to resolve potential disputes that can occur between contractors and their respective employees. Ontario Chamber of Commerce In the Delegate's email to Council following their presentation to the Executive Committee they asked what categories do these businesses (Members of the Ontario Chamber of Commerce) fall under and how many of them perform highly skilled and potentially dangerous construction work? The Ontario Chamber of Commerce (OCC) is a federation of 160 local chambers of commerce and boards of trade, representing 60,000 businesses from all sectors, of all sizes and from all areas of the province. The businesses are divided into sub-categories so how many businesses perform skilled or dangerous construction work is not available. Generally speaking, the membership roughly matches the demographics of Ontario's businesses. The Government of Ontario has received the OCC correspondence and has acknowledged their consultations. The Province is still working on updating their Fair Wage Policy - a status update as of early June 2010 from the Ministry of Labour is that it is "still under consideration". Ajax-Pickering Board of Trade - Member of the Ontario Chamber of Commerce The Ajax-Pickering Board of Trade is a member of the Ontario Chamber of Commerce, having more than 600 members, including Pickering, representing every sector of the local economy and a trusted voice in the business community. Voice from The Greater Oshawa Chamber of Commerce The Greater Oshawa Chamber of Commerce (GOCC) is incorporated under the Boards of Trade Act. As one of the leading business associations in Durham Region it has over 1,100 entrepreneurs, managers and corporate executives as members, representing over 840 businesses of all sizes and sectors that collectively employ over 40,000 in the 73 Report CS 30-10 September 7, 2010 Subject: Fair Wage Policy Page 5. 207 Region. As the leading business association it continually strives to create an atmosphere that will improve and advance business and create jobs. It is their mandate 1 to provide services and opportunities for local and regional businesses. The GOCC echoes the sentiments of the OCC, as they believe that such policies limit the ability for smaller-to-medium size.companies and suppliers to bid on government projects and questions whether a fair wage policy works to provide 'the best overall project value to the taxpayer at the most cost effective price. Survey of Municipalities The comment was made that Thunder Bay said no one has ever contacted them. The City of Thunder Bay was contacted March 4, 2010 and included in the survey of 28 municipalities and 3 public agencies (Attachment 2, Report CS 28-10). Two (2) of the survey responses indicated they have yet seen any proof that are any cost savings as a result of using the Fair Wage Policy. Refer also to Attachment 3 Page 7, Report CS 28- 10 where mention is made of cases. in other jurisdictions, such as in British Columbia, where fair wage policies were repealed on the ground that they increase project costs and increased the burden on taxpayers while providing debatable benefits. City Policy - Provision of Open, Fair, Equitable Accessible and Competitive Bidding Processes The City avails itself through its bidding practices to a myriad of businesses of which small to medium size businesses seek out the opportunities to work in, and be a part, of Pickering 's development and continue to participate-in municipal construction projects bid opportunities. The City continues to provide best value to the taxpayers of the City of Pickering through the provision of open and fair, equitable, accessible and competitive bidding processes, as stated in the Council approved Purchasing Policy. The City's bidding processes and Health & Safety procedures continue to attract competition from the marketplace yielding competitive pricing from qualified and skilled contractors and savings to benefit the City and it's taxpayers. Should Council still wish to implement a Fair Wage Policy, staff have acquired.a copy of that approved by Clarington Council and adopted it, basically changing Clarington to Pickering and incorporated Oshawa's $5,000 fee as it was felt to be more representative of potential staff costs than Clarington's at $2,500. The Policy would fall under the direction of the Director, Corporate Services & Treasurer with actual day-to- day responsibilities falling under the Manager, Supply & Services. Attached is the City of Toronto Fair Wage Schedule which is included in this report for illustration purposes as Attachment 3. It.has not.been updated since 2003. Should Council adopt a Fair Wage Policy an updated version of this Schedule will have to be created and form part of this Policy. 79 Report CS 30-10 September 7, 2010 Subject: Fair Wage Policy Page 6 208 Attachments. 1. Report CS 28-10 2. Draft Fair Wage Policy 3. Fair Wage Schedule - City of Toronto Prepared By: Approved/Endorsed By: Vera A. Felgemach Gillis A. Paterson Manager, Supply& Services Director, Corporate Services & Treasurer C.P.P., CPPO, CPPB, C.P.M., CMM III . Copy: Chief Administrative Officer Recommended for the consideration of Picker' C it Tony Prevedel, P.Eng. Chief Administrative Officer Z O 9 ATTACHMENT#TO REPORT#- !Fx 0103 qry 00 Report to Executive Committee Report Number: CS 28-10 Date: June 14, 2010 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Fair Wage Policy Recommendation: That Report CS 28-10 of the Director, Corporate Services & Treasurer regarding Fair Wage Policy be received for-information. Executive Summary: At the meeting of Council held on April 19, 2010 direction was given by Council Resolution 465/10 that CORR.29-10 from Terry Dorgan, Business Agent and representative for.Central Building Trades requesting the City of Pickering review their Fair Wage Policy By-law in order to update their policy to mirror other municipalities such as Oshawa and Clarington be referred to staff for report prior to Council's summer recess. After a thorough review, consultation with other municipalities and careful consideration, staff have concluded that it is not necessary to implement any additional update to City By-law-or policy. This is consistent with the Region of Durham's position on this matter. Financial Implications: There are no financial implications associated with the Recommendation. Sustainability Implications: There are no sustainability implications associated with this report. Background: City's Current Policy and Practices The City's Purchasing Policy begins with a Policy Statement which includes: `That the City provide best value to the taxpayers of the City of Pickering through the provision of open and fair, equitable, accessible and competitive bidding. processes." Report CS 28-10 June 14, 2010 Subject: Fair Wage Policy Page 2 8 1 The City's bidding processes have been open and, fair, equitable, accessible and competitive and without concern or conflict from the bidding community for over 30 years. The City's bidding processes continue to attract competition from the marketplace yielding competitive pricing from qualified and skilled contractors and savings to benefit the City and taxpayers. The City is responsible for ensuring that. public funds are spent in a manner which maximizes-the value obtained for money spent in an open and competitive environment which ensures all suppliers that wish to do business with the City are treated equally and fairly. General Conditions within the City's tendering documents include the following Fair Wage Clause: `The Provincial Fair Wage regulations shall be applied to this contract and the Contractor shall be prepared to provide such proof as may be necessary to indicate that wages paid to employees are in compliance with the required minimum." Criteria to select qualified contractors include, but is not limited to, the following: Rigorous evaluation of contractor's health and safety policy, qualifications, safety record, insurance coverage Evaluation of experience in work of similar scope and value, and performance reviews • Backing by a recognized surety company The City. has a,responsibility to hire qualified contractors and ensure compliance with the regulations of the Occupational Health & Safety Act. The City already does its due diligence to ensure only qualified contractors undertake work and comply with all Federal, Provincial and Municipal statues and regulations. The Ontario Chamber of Commerce (OCC) is a federation of 160 local chambers of commerce and boards of trade in the Province of Ontario, representing an estimated 57,000 businesses of all sizes, in all economic sectors and from every area of the province. The OCC's mandate is to advocate strong policies on issues that affect it's membership through Ontario's business industry. In August, 2007 the OCC provided a response on Fair Wage Policy (FWP) to the Director, Employment and Labour Policy Branch - Ministry of Labour and this communication has been confirmed as the most current. The following statements are contained in the response. and bear repeating: "To conclude, the OCC believes the FWP does not effectively provide for a fair return on taxpayer dollars while it falls short of meeting an equitable social objective. Therefore, the OCC recommends the government of Ontario to phase out the FWP". 82 Report CS 28-10 June 14, 2010 Subject: Fair Wage Policy Page 3 The following conclusion appears in, the. most recent Region of Durham Report #2009- F-38 presented to Regional Council: "Given the core service issue and the debatable benefits associated with incorporating such a policy, Regional staff does not recommend the inclusion of a Fair Wage Policy within the framework of its ICI construction contracts or any other service, sector or industry in which such a fair wage policy could be applied. The Region should continue to ensure consistency and equal treatment for all potential suppliers of goods and services to the Region and thus refrain from granting any type of preferential treatment to a select number of recipients through the implementation of the proposed (Region) Fair Wage Policy." The foregoing conclusion within the Regional report resonates the City's Recommendation as well,• that being the City continue to ensure consistency and equal treatment for all potential contractors to the City and thus refrain from granting any type of. preferential treatment to a select number of recipients through the implementation of a proposed City Fair Wage Policy. Attachments: 1. Correspondence from International Brotherhood of Electrical Workers 2. City of Pickering Overview of Proposed Fair Wage Policy 3. Region of Durham Finance and Administration Report No. 2009-F-38 regarding a Fair Wage Policy i Prepa ed By: Approved/Endorsed By:* CA. Vera A. Fel emacher Gillis A. Paterson Manager, Supply & Services Director, Corporate Services & Treasurer C.P.P., CPPO, CPPB, C.P.M., CMM III Copy: Chief Administrative Officer Recommended for the consideration of Pickering C oun it Tony Preve el, P.Eng. Chief Administrative Officer ATTACHMENT#J-TO REPORT#.U_?? 83 Request for DelegatlOtl Debbie Shields One The Esplanade Pickering, Ontario, Canada L1V 6K7 To whom this may concern, The Central Ontario Building Trades represents 60,000 skilled trades' workers in Central Ontario. Most recently they have been active in promoting the adoption of modern Fair Wage Policies throughout, Ontario. This is to coincide with already implemented Fair. Wage Policies in municipalities and institutions such as; Oshawa, Thunder Bay, Hamilton, Sudbury, Clarington; Toronto, the University of Ontario Institute of Technology and Durham College: Within the City of Pickering's purchasing Bi-laws a Fair Wage Policy, dated 1995, has been implemented over the past 15 years. The Central Ontario Building Trades view this policy as being out dated and respectfully requests that the City of Pickering update their. Fair Wage Policy to mirror other municipalities such as Oshawa and Clarington. Central Ontario Building Trades representative Terry Dorgan, requests to appear as a delegation on April 19`h 2010 in respect to modernizing the city's Fair Wage Policy. Best Regards, Terry sor~A er+ . 9 1 BEW L.oi:.k 81LA ORIGINAL. , 'TO: COPY TO:. TAKE 1: PP: ~MO+ 84 .~A us about Adopting Fair Wage What is a Fair Waae Requires all contractors to pay or provide the same wages, benefits and hours to all workers. Policy? Municipalities pay their construction workers a "fair wage" for ar::;~> the work performed and to ensure that workers are not exploited or discriminated against. Usually applies to construction (ICI) projects over V100,000. Who has already adopted. The Federal government, the provincial governments of Fait' Wage? Ontario, Manitoba and British Columbia, the municipalities of Toronto, Oshawa,"London, Montreal, Calgary, Edmonton and Greater Vancouver, in addition to numerous agencies, boards, . . commissions and universities/colleges all have adopted fair wage policies. . What are the cost Minimal increases in.construction cost (2-4%) iirlpliCatiOlls of Fair Wage Significant cost savings (11-17%) based on higher productivity gains resulting in lower renovation and repair work Policy Adoption to (Source: Ontario Construction Secretariat) projects? What are the financial For small to medium sized Municipalities, it.takes 20-40 hours. implications of Fair Wage per year to administer a Fair Wage Policy. - to Municipalities? Investigations.fees (e-.g. $2500 per investigation) would cover administration costs and be an additional revenue source for the . Municipality. ! In the City of Toronto, administration revenues from Fair Wage exceeded $27,000 in 2008. What are the other (1) -stable labour relations with minimal-disruption. Benefits of Fair Wage (2) A level playing field in competition for City Work. tiOn? (3) Protection of the Public Policy Adoption?' p (4) Enhanced reputation of the Municipality for ethical and fair business dealings. f i ATTACHMENT#aR_TO REPORT 85 City of Pickering' Overview of the Fair Wage Schedule and Policy Proposal Contractors entering into ICI (Industrial-Commercial-Institutional) construction contracts carried out by, and for, the City would.pay or provide wages, benefits and hours of work to their employees while adhering to a "City Fair Wage Schedule and Policy". Similarly, it would be the responsibility of the contractor to ensure the subcontractor(s) are also adhering to the terms of the City Fair Wage Schedule and Policy. The proposal outlines a contract threshold minimum of $500,000 and therefore, contracts below a threshold would be exempt from the terms of the proposed policy. A "investigation fee" would be required to investigate complaints. Upon receipt of a Registered Complaint, together with payment of an investigation fee, the City would take such action as it deems necessary to determine whether the Contractor and Sub-contractor involved or named in the Registered Complaint is in compliance with the Fair Wage Policy and the Fair Wage Schedule. Sample investigation fees are $2,000-and $5,000. Fair wage policies exist in relatively few municipalities from the survey undertaken recently. Of the 28 municipalities and 3 public agencies surveyed, only 5 municipalities. have their own fair wage policies,.2 of which are Clarington and Oshawa., As identified in the Region of Durham's Report #2009-F-38 on Fair Wage Policy "the City of Toronto's Fair Wage Policy often serves as a benchmark for other jurisdictions and its wage schedule is arrived at through review of stipulated rates of pay for various classes of work produced. The City of Toronto's Fair Wage Office is made up of. several staff members solely-dedicated to the review of tenders and vetting of bidders to ensure compliance, links to their schedule, to the complete wage package, inclusive of benefits (excluding union dues, associate fees, etc) and is tied to collective agreements specific to the local area. Review of the schedule by the City of Toronto's is done once every three years and is adjusted annually for inflation. The City of Toronto's Fair Wage Office provides auditing, administrative and schedule research and review service to other municipalities with fair wage policies of their own." Administration of a City Fair Wage Schedule and Policy would have to be designated to be the responsibility to a Manager in Corporate Services.or appropriate designate for the review and administration of a Fair Wage Schedule and Policy and likely require additional internal staffing to support the Manager. Clarington implemented a fair wage policy as an interim process. and applies on ICI (Industrial-Commercial-Institutional) projects over $1,000,000 and Oshawa's applies on projects over $500,000. Clarington has not seen any proof that there are any cost savings flowing as a result of using the Fair Wage Policy. Clarington relies on the City of Toronto to provide schedules and undertake audits otherwise, would need extra staff. The following is abstracted from. a City of Toronto staff report February 1, 2007 - "Establishing fair wage rates and schedules are intended to minimize potential conflict between organized and unorganized labour in the tendering and awarding of civic contracts". This may be a factor in Toronto, however, there has been no conflict whatsoever in over 30 years between organized and unorganized labour in the tendering and award of contracts within the City of Pickering. ATTACHMENT#,;L-TO REPORT# Qd-J.0 86 Aril 15, 2009 Finance & Administration -15- P Committee MOVED by Councillor Kolodzie, (160) "THAT the foregoing motion, (159) of Regional Chair Anderson be tabled." MOTION DEFEATED Councillor kolodzie indicated that he wished to table the motion until he could obtain an accurate accounting of what each Municipality has put into Durham Region Transit (i.e., cost of buses, lands, etc) The motion (159) of Regional Chair Anderson was then put to a vote and CARRIED. d) PROPOSED ESTABLISHMENT OF A FAIR WAGE POLICY ON ICI CONSTRUCTION CONTRACTS BY THE REGION OF DURHAM (2009-F-38) Report #2009-F-38 from R.J. Clapp, Commissioner of Finance, was received. R.J. Clapp responded to various questions from Councillor Kolodzie with respect to whether or not there would be additional costs; why the fair wage policy comparison chart (of GTA and other municipalities) shown on page 3 of the report did not have more up-to-date comparisons; and the impact had a fair wage policy been in place when the new water pollution control plant was constructed in Courtice. 'A question regarding union versus non-union i workers was also raised and was addressed by R.J. Clapp. MOVED by Councillor Parish, (161) "THAT Report #2009-F-38 of the Commissioner of Finance be received for information." CARRIED e) REGIONAL DEVELOPMENT CHARGE INDEXING (2009-F-39) Report #2009-F-39 from R.J. Clapp, Commissioner of Finance, was received as a handout. R.J. Clapp reviewed the recommendations contained in Report #2009-F-39 with the Committee and also highlighted section 3.3 on page 6 which summarizes the potential foregone revenue (estimated $4.0 million) from waiving the indexing of residential and non-residential development charges and delaying the scheduled phase-in of non-residential development charges for the ICI sectors in order to provide some relief for local development.and building industries during this, economic recession. Councillor Parish questioned the reason for doing this and also commented there would be minimal impact in terms of stimulating development and creating jobs. Councillor Parish also expressed concern with the loss of the estimated $4 million in development charge revenue in 2010 and beyond. R.J. Clapp noted there will be an opportunity to update the rates when a new development charge by-law is completed. Councillor Parish also questioned R.J. Clapp on whether consideration had been given to alternatives, such as 1.25 i i RoD -File Display Page 1 of 8 87 The Regional Municipality of Durham Report to: The Finance and Administration Committee From: R.J. Clapp, Commissioner of Finance Report No.: 2009-F-38 Date: April 16, 2009 SUBJECT: Proposed establishment of a Fair Wage Policy on ICI construction contrails by the Region of Durham R§COMMENDATINS: THAT the Finance and Administration Committee receive this report for irdormatim- 1.0 INTROO UC?JON This report conalders.the implications of incorporating a fair Wage Policy into the framework of the Region of Durham's ICI construction contracts. The report briefly summarizes the Fair Wage Policy proposal put forth by local union representatives and discusses current experiences with fair wage policies in other municipalities for the purpose of establishing a Regional position on the proposal. 2.0 BACKGROUND • On November 14, 2007, with a UA Local 463 representative in attendance, a representative from ISEW Local 894, Oshawa and District provided a presentation to Council members regarding a f=air Wage Policy Proposal for the Region intended to cover ICI consduction contracts carried out by. and for, the Regional Municipality of Durham. Council members were also presented with bound copies of the Fair Wage Proposal and a publication from the Ontario Construction Secretariat (OSC) entitled "Impact of Fair Wage Policies on the Construction Industry. A Fair Wage Policy would allow the Region to require that all contractors bidding on contracts for the Region provide wages, benefits and hours to their employees in compliance with the Region's Fair Wage Policy. The policy would also make contractors responsible for ensuring that sub-contractors also adhere to the policy. 49 https://zyimage.durham.ca/Exe/ZyNET.exe/000OA9DJ.txt?ZyActionD13=ZyDocument&... 13/05/2010 i RoD - File Display Page 2 of 8 I Report No,: #2009-F-35 __?N a No.: 2 • Terry Dorgan. the UA Local 463 representative, suggested that fair wage policies assist in counter-bataneing the propensity for suppliers in the, construction industry to engage in cut-throat competition driven by the Iow-Nd policies often adhered to by the public sector. It is argued that by setting a wage floor for which contractors and sub-contractors must adhere to. and essentially "taking the wages out of competition" such cut-throat competition through the paying of lower wages can be minimized. They indicate that such competition is also believed to erode occupational safety standards. weaken industry investment in skills training and "promote" evasion of legal obligations, such as the circumvention of El and CPP contributions. Mr. Dorgan also commented that fair wage policies have been in Canada for some time and that the City of Toronto policy often serves as a benchmark for policies in other areas. • A follow-up meeting took place January 2008 between Regional staff and IBEW Local 894 and UA Local 463 representatives to again discuss the Region's proposed Fair Wage Policy. On April 2009, Regional staff met with members of the Greater Oshawa Chamber of Commerce to discuss fair wage policies and their potential impact on the Region of Durham. 3.0 ova O THE FAI AGE POLICY PROPOSAL • Under the proposal. contractors entering into ICI construction contracts canted out by, and for, the Regional Municipality of Durham would pay or provide wages, benefits and hours of work to their employees while adhering to the Region's Fair Wage Schedule and Policy. Similarly, it would be the responsibility of the contractor to ensure that the sub-contactor is also adhering to the terns of the Fair Wage Schedule and Policy. The proposal outlines a contract threshold minimum of $500,000 where contracts below this threshold would be exempt from the terms of the proposed policy. Administration of the policy and wage schedule would be designated to be the responsibility of the Manager, Purchasing Services or appropriate designate. • Through its tender call, the Region would make the Fair Wage Schedule and Policy available to every parry bidding in ICI construction contracts. In a manner that is acceptable to the Region, evidence of policy adherence would be provided by the contractor and sub-contractors after substantial performance of the construction contract. Contractors and sub-contractors would be required to post appropriate fair wages, wage schedules and tabour conditions in a conspicuous place at the work site and would be ordered to maintain accurate records of employees detailing employee information. trade' classification, hours of work and wages; information that would be made available for inspection upon request by the Region. r, n https://zyimage.durham.ca/Exe/ZyNET.exe/OOOOA9DJ.txt?ZyActionDI3 ZyDocument&... 13/05/2010 RoD - File Display Page 3 of 8 _.89 Report No.: #2009-:-38 Page No.: 3 A Registered Complaint could be teed by ~-oon~ o Sub-contractors Under employees with the Region against any the proposal. the Region would investigate the complaint for a base . Investigation fee of $2500 being proposed by the unions and subject to the. conditions of substantial performance of the construction contract. Should the registered complaint be found to be unsubstantiated. the Region would retain the investigation fee from the complainant and take necessary action to daim any costs in excess of the base.investigation fee. Should the investigation deem the contractor or sub-contractor to be in nonce millthe i terms non-compliance. o ff c the po rld be provided by the Region to Immediately comply First time non-compliance violations within a five-year time frame may result, in the contractor requiring accounting reports for the next three Region- related ro of which the contractor performs construction work: declaring projects adherence to the Fan Wage Policy. Multiple non-compliance of noes by contractors within a five-year time frame may result in restrictions to bid on - Region contracts for a period. of two years. 4.0 PAIR WAGE POLICY EXPERIENrIg IN Mffi 498_1A01CTtONS • Fair wage policies exist in relatively few municipalities across Canada. The majority that do have fair wage policies are concentrated in Southern Ontario, and include Toronto. Hamilton. Oshawa, London. Clarington. Sudbury. Kitchener. Mississauga. Vaughan, and Brampton. To date, no regional municipality has yet adopted a fair wage policy (i e. Halton Region, York Region. Municipality of Waterloo) The table below provides a comparison of fair wage schedule compensation by various municipalities across a select number of common trade positions. FakNp Ra gCamparbon -hand Iffier municip liilM ofth, adf mntoFair Ofte•feb 2W 01 - 4. ro o~ :aN :i ":~:.2W_ Y. wiaim'=s•:r~t''7,~,av:t . ,(,a, . _ iW/ ti i'... xpnv~ason trapiavwea~ 1~r~pn,v~nUan, .waviw9an, EM001"tllC001u Yo110117hrod WSP16halm NdWgdf8p hdnar.,da PmOsiaiF.W.Wipa F4M14JWpp H*&y`f&p aftbiR&Slownim iK/2 11 015 RM s1tt6 SAN . SAX sR61 $7116 Ss>s X96 $trS2 sea SAA E3cdtidas $13u 33LTA Sao 11 am Sao s/ua SKI? Mrclann~at~ba~eis taR22 s3t11 No sm ON swn San E>s opens sla8a 134* $051 as $2.34 $1221 sm. bell rioarWdker slaps $22.16 0.61 sag $2670 as =0 v _ORA .1. 59 https://zyimage.durham.ca/Exe/ZyNET.exe/000OA9DJ.txt?ZyActi0nDJ3 ZyDocutnent&... 13/05/2010 i RoD - File Display Page 4 of 8 90 i Repo I No.: #2009-F-36 Page No.: 4 • The City of Toronto's Fair Wage Policy often serves ass benchmark for other jurisdictions and its Wage Schedule ls.arrived at through review of stipulated rates of pay for various classes of work produced. The City of Toronto's Fair Wage Office, made up of several staff members sole"edlcated to the review of tenders and vetting of bidders to ensure compliance, links their schedule'to the complete wage package, inclusive of benefits (excluding union dues, association fees, etc.). and Is tied to collective agreements specific to the local area. Review of the schedule by the City of Toronto's Fair Wage Office is done once every three years and is adjusted annually for Inflation. The City of Toronto's Fair Wage Office often provides auditing. administrative and schedule research and review services to other municipalities with fair wage policies of their own. • . Within Durham Region, Clarington and Oshawa each have their own fair i wage policies for ICI construction contracts and with the assistance of the City of Toronto's Fair Wage Office. wage schedules are developed by linking wages to local collective agreements within the appropriate Ontario Labour Relations Board Construction Industry Area (Area 9 for both municipalities). For both municipalities. in the event of a registered complaint, administrative support and auditing services can be performed by the City of Toronto's Fair Wage Office or appropriate designate as determined by the municipality. For complaints that are deemed valid, the investigation fee is returned to the complainant and the cost for the auditing service would be charged to the j municipal budget. However, evidence of noncompliance by a supplier allows the municipality to pursue the base investigation costs along with any other costs the municipality deems appropriate and can deduct the amount from the balance owing by the municipality to the supplier. • Since the inception of its fair wage policy. Clarington has only seen two ICI construction projects exceeding the $1 million threshold level. Oshewa"s fair. wage policy. with a lower contract threshold level of $500.000, has yet to undertake a project above this amount. The lack of actiivfty among the area municipalities mattes It difficult to assese the effects of their respective polities. 5.0 THE REGION OF DURHAM'S CURRENT PRACTICES • The Region of Durham s By-Law No. 613.2000, as amended, defines purchasing and tendering policies covering the acquisition of goods and services projects by the Region. The Region of Durham currently undergoes a thorough examination of all tenders and proposals, as well as a process for qualification of suppliers of goods and services. It Is the objective of the Region to acquire its goods, services and works without favoritism through the application of the highest standards of business ethics. 52 https://zyimage.durham.ca/Exe/ZyNET.exe/000OA9DJ.txt?ZyActionDI3=ZyDocument&... 13/05/2010 RoD - File Display Page 5 of 8 91 Report No.: aoci9 F 38 , rage No.: 5 The pre-qualification criteria to selecting a list of qualified suppliers includes. - but is not Iimited to: + Review of health and safety records of suppliers: • Record of supplier working experience and evaluation of prior performance; and e Examination of the prior bidding history of lire supplier and financial status of the supplier. For projects above $100,000. pregualiFication of achieved via Council approval for each respective project. A joint report is required by the Department Head and "designated officlar and is submitted to the appropriate Standing Comrn'dtee and Council for approval prior to proceeding with prequalification of the supplier. The Region has a responsibility to hire qualified contractors and ensure compliance with the regulations of the Occupational Health and Safety Act as well as any additional policies mandated by the Regan. + Awarding of the contract Is usually based on the lowest responsible bid assuming all speeltications and qualifications have been'met. In its purchasing of goods and services, it is the responsibility of the Region to ensure that public funds are spent in a manner which maximizes the value obtained for money and to ensure that the solicitation. bidding and award ing process is done in an open end competitive environment which ensures that all suppliers that wish to do business with the Region are treated fairly and equally. While there Is currently no fair wage policy incorporated into construction contracts, Regional staff believes that the Region already does Its due diligence In ensuring that only qualMed and reputable suppliers partake in the supply of goods and services for the Region by ensuring compliance to all Federal, Provincial and Municipal statutes and regulations. $.0 REGIONAL STAFF CONCERNS WITH FAIR WAGE POLICY Upon review of various 1'deratums. research and experience In other jurisdictions and entities. Regional staff suggests that there are several concerns with implementing a Fair Wage Policy in the framework of ICI construction contracts. Some primary concerns include. The Implementation of a Fair Waga Policy results In the Region assuming the role as a third-party arbiter serving to resolve potential disputes that occur between suppliers and their respective employees. • The Region would likely incur significant administrative coats as a result of including and enforcing fair wage policies to its ICI Construction contracts. While the proposal outlines a base investigation fee of $2.500 to help recover administrative and audit-related costs associated i 53 I https://zyimage.durham.ca/Exe/ZyNET.exe/OOOOA9DJ.txt?ZyActionDI3=ZyDocument&... 13/05/2010 ' RoD -File Display Page 6 of 8 92, Report No.: 02009•F•38 Pena No.: 6 with a Registered Complaint, these costs may not necessarily reflect the total costs that may be associated with review and research of policies and wage schedules, as well as costs associated with inspections and audits during the . period of the construction contract. As a.result, while the Region can recover base Investigation fees from either the party named in the complaint or the complainant any costs exceeding the base costinvestigation fee must be pursued by the Region. Also to be opnsidered are the opportunity costs of utilizing Regional staff resources towards monitoring policy oomplianoe and conducting complaint-driven investigations based on allegations which could prove to be unsubstantiated. In addition, the required posting of the proposed Fair Wage Schedule and Policy at every site provides Region contact Information to the public to answer any inquiries regarding the Fair Wage Schedule and Pdicy; Inquiries which may be unrelated to non.;eomplianoe issues. • To date, there have been no discussions with the City of Toronws Fair Wage Office regarding possible administrative support related to the Region's I proposed Fair Wage Schedule and Policy and it Is not known if the Fair Wage Office would have the manpower to provide such support to the Region without having to increase their staffing requirements. If the Fair Wage Office was incapable of providing administrative support to the Region under their current structure, additional internal staffing would likely be required by the Region to support the Manager. Purchasing Services in the review and administration of the Fair Wage Schedule and Policy. Taking into account the staffing requirements of the City of Toronto's Fair Wage Office and considering the City of Toronto's population relative to that of Durham Region, it could be assumed that the Region would require at least one full-time employee dedicated solely to the administration and review of the fair wage policy, and schedule for the Region of Durham. • The manner in which "fair wages" should.be set for the Region remains uncUear. Some jurisdictions. with the assistance of the City of Toronto's Fair Wage Office, develop Wage Schedules based on local collective agreements according to the boundaries set by the OLRB Area Schedule. However. Area 9 represents all of Durham Region except for Pickering and Ajax, which fall into Area 8 (which includes, but is not limited to Mefropditan Toronto, and Peel and York regions). While it is likely that cross-regional overlap Is a non, issue when examining area municipalities, it is unclear how *fair wages" would be set for a regional municipality with overlapping 0LR8 Areas. For example, IBEW Local 894, which represents electrical workers. represents a wide area including all of Durham Region. However. OLRB Areas 8 and 9 both cover large portions of Durham Region and it Is unknown whether the collective agreements from Area 8, including those for IBEW Local 363 (covering Toronto. Peel Region, York Region and a portion of Dufferin, County), would take precedence over the those of Area 9. or vice versa. 54 j https://zyimage.durham.ca/Exe/ZyNET.exe/OOOOA9DJ.txt?zyActionDI3=ZyDOcume.nt&... 13/05/2010 RoD - File Display Page 7 of 8 93 Report No.: #2009-F-38 Page No.: 7 • The Ontario Chamber of Commerce (OCC) claims that the ProVinoe,of Ontario has an ample amount of legislative tools to address the social and economic needs of the Ontario workforce, including various labour policies and minimum wage legislation. The OCC also claims that the poshive impacts of fair wage policies - benefits that are typically accrued to a limited number of beneficiaries - are undermined by the overall increase in program costs. The OCC continues to champion for the phasing-out of the Provincial Fair Wage Policy as they claim it results in inflated wages for non-unionized employers that otherwise would have been compensated fair. competitive e market wages. The Greater Oshawa Chamber of Commerce (GOCC) echoes the sentiments of the t?CC as they believe that such policies limit the ability for smaller4o- medium suppliers to bid on 4ovemment contracts and they'questloned whether a fair wage policy works to provide the best overall project value to the taxpayer at the most cost-effective price. Similarly, the Canadian 1Federadon of Independent Business (CFIB), a not4or-profit, non-partisan organization which represents the interests of small and medium-sized businesses, has long argued against fair wage policies and claims that the government should not be involved in setting wages for private sector workers bidding on public sector contracts. There have been cases in other jurisdictions, such as in British Columbia, where fair wage policies were repealed on the grounds that they increased project costs and Increased the burden on taxpayers while providing debatable benefits. Studies have found that BC's fair wage policies, which mandated for wages that were up to one-third higher than the prevailing competitive market wage rate, added approximately 7 per cent (over $100 million annually) to the cost of publie construction projects. It was the belief that the return to an open tendering process would ensure optimal value for taxpayers and the savings incurred as a result of the repeal of the fair wage policy would assist in allocating funds to other much-needed proles • While fair wage policies exist in various area munlcipalldes and entities, no regional municipality has yet to impose a fair wage policy. Given the Region's geographic expanse and'the potential administrative and opportunity i costs associated with implementing such a policy. the question arises as to why the Region should assume the responsibility for establishing wages paid by suppliers bidding on Regional tendered ICI construction contracts given that there is no dear benefit to the Region for doing so. As noted. Regional staff believes that the Region already undergoes a thorough evaluation and vetting of potential bidders that ensures adherence to all statutes, regulations and standards and ensures that the awarding of contracts is done in an open and competitive environment where all potential suppliers are treated equally and fairly. 55 https://Zyimage.durham-ca/Exe/ZyNET.exe/000OA9DJ.txt?ZyActionDI3=ZyDocwncnt&... 13/05/2010 RoD - File Display Page 8 of 8 9.4 Repoli No.: 1#2009-F-38 Pa No.: 8 1.0 CONC_USON • Given the core service issue and the debatable benefits associated with Incorporating such a policy. Regional staff does not recommend the inclusion of a Fair Wage Policy within the framework of its ICI construction contracts or any other service. sector or industry in which such a fair wage policy could be applied. The Region should cortiti o to ensure consistency and equal treatment for all potential suppliers of goods and services to the Region and thus refrain from granting any type of preferential treatment to a select number of recipients through the Implementation of the proposed Region Fair Wage Policy. R.J. Clapp. CA Commissioner of Finance 5b https://zyimage.durham..Ca/Exe/ZyNET.exe/OOOOAgDj.txt?ZyACtionDj3=ZyDocument&... 13/05/2010 Call o~ City Policy ATTACHMENT#-1 TO REPORT#_S 3 IQ 5 PICKERING Policy Title: Fair Wage Policy for Industrial, Commercial and Policy Number: FIN Institutional Construction Contracts Reference: Date Originated: Date Revised: X Approval: Chief Administrative Officer Point of Contact: Manager, Supply & Services Policy Objective On all Industrial Commercial Institutional (ICI) construction contracts with the City of Pickering, every Contractor and Sub-Contractor shall pay or provide wages, benefits and hours of work to their Employees, in accordance with the "Fair Wage Policy for ICI Contracts" and the Fair Wage Schedule of the Corporation of the City of Pickering. Failure to comply with the Fair Wage Policy may result in restricted ability to bid on Municipal construction business. Scope This policy applies to ICI projects over $1 million and provides framework for the application of the Faire Wage Schedule. Index' .01 Definitions 02 Procedures 03 Legislative Compliance 04 Liability 05 Posting 06 Records 95 07- Complaints 08 Inspection and Audits 09 Compliance 10 Consequences of Non Compliance Policy Title: Page 2 of 11 Policy Number: X 97 01 Definitions 01.01 Pickering means the Corporation.of the City of Pickering, and, where the context allows, its officers, officials, employees and agents or any of them. 01.02 Municipal Council means the elected Municipal Council of the City of Pickering. 01.03 Contractor means any person, firm or corporation having a contract with the City of Pickering for the performance of ICI construction work, but does not include any person, firm or corporation that only supplies materials for the Construction Contract. 01.04 Construction Contract means any ICI construction of an estimated value of at least one million ($1,000,000.00) dollars (exclusive of HST administration and related costs), entered into between the City of Pickering and a Contractor and includes the various sub-contracts to that contract. 01.05 Construction Contracts which were initially tendered and awarded under the one million ($1,000,000.00) dollar threshold (exclusive of HST, administration and related costs) but exceeded this upset limit due to owner requested changes or other unknown change orders after the award of the contract, are exempt from this policy. 01.06 Audit'Services means the review of tendering submissions of any or all bids at time of tender and records of low bid contractors and sub- contractors to ensure compliance. Audit services may be performed by the City of Pickering or alternate designated by the City. 01.07 Employees means those persons employed by the Contractor or Sub- Contractor in positions, classifications (trades or any combination of those) identified in the Fair Wage Schedule, for the performance of construction work on a Construction Contract with the City, or any sub- contract. 01.08 Fair Wage Schedule means the schedule of wages, benefits and hours of work for the performance of construction work on all Municipal ICI Construction Contracts as approved and as amended from time to time as based on the Ontario Labour Relations Board (OLRB) Geographic Area 8. Policy Title: Page 3 of 11 Policy Number: X i 98 01.09 Fringe Benefits" includes such benefits as company pension plans, extended health care benefits, dental and prescription plans, etc. It does not include legislated payroll deductions such as C.P.P., E.H.T., . W.S.I.B. or E.I.C., O.H.I.P. 01.10 ICI is an acronym abbreviation for "Industrial, Commercial and/or institutional". 01.11 Registered Complaint means a written complaint from an identified source which alleges that a Contractor or Sub-contractor has violated this Fair Wage Policy. Registered Complaints must be submitted, in - writing, to the Manager, Supply & Services of the City of Pickering. 01.12 Sub-contractor means any person, firm or corporation performing work for a Contractor or one of the Contractors or other Sub-contractors who has a Construction Contract with the City, but does not include any person, firm or corporation that only supplies materials for the Construction Contract. 01.13 Sub-contract means any contract between a Contractor and any of that Contractor's Sub-contractors with a firm, person or corporation for work in accordance with a Construction Contract. The term excludes contracts for material supplies only. 01.14 Term This policy is in effect for a term of two years from Council ratification, after which it will be referred back to Council for review. 02 Procedures The Manager, Supply & Services or designate will prepare and review the Fair Wage Schedule from time to time and after consultation with the audit service provider, those amendments to the Fair Wage Schedule which are required to reflect the prevailing wages, benefits and hours of work in the construction industry in the geographical area of the City will be made by the Manager, Supply & Services. The Manager, Supply & Services or designate will review the Fair Wage Policy from time to time and recommend to Council any substantive required amendments to the Fair Wage Policy. Minor amendments may be made after consultation with the audit service provider. Policy Title: Page 4 of 11 Policy Number: X 99 The Manager, Supply & Services or designate will co-ordinate, as necessary, the preparation of information reports to Council regarding complaints investigated and audits performed pursuant to the Fair Wage Policy. The City shall make available through its tender call, to every person bidding on Pickering's ICI Contracts, the then current Fair Wage Policy and Fair Wage Schedule and shall include in contract documents and/or provide copies of them to the bidders, or make them available through the City's web page. The Contractor and its Sub-contractors shall not be responsible, for any Fair Wage Schedule rate increases which occur after the tender closing date for the Municipal Construction Contract on which the Contractor is the successful bidder - the. price does not change, even if the rate schedule increases. For all ICI Contracts with the City, the Contractor shall provide to the City, in a form acceptable to the Municipal Solicitor or designate, notification that the Contractor and its Sub-contractors are in compliance with the Fair Wage Policy and the Fair Wage Schedule. This notification shall be provided to the City after substantial performance of the Construction Contract as defined in the Ontario Construction Lien Act, R.S.O. 1990, c C.30, as amended, including successor legislation.. A Contractor is fully responsible for ensuring that all of its Sub-contractors comply with the Fair Wage Policy-and Fair Wage Schedule. A Sub-contractor is fully responsible for ensuring that all of its Sub-contractors comply with the Fair Wage Policy and the Fair Wage Schedule. A Contractor must provide all of its Sub-contractors with a copy of the Fair Wage Policy and Fair Wage Schedule before any construction work is performed by the Sub-contractors. Contractors and Sub-contractors cannot subcontract any portion of the contract for less than the fair wage rates. From time to time, the City will engage the services of an alternate auditing service to conduct investigations on their behalf. The Fair Wage Rates will be based on the Ontario Labour Relations Board (OLRB) Geographic Area 8. Policy Title: Page 5 of 11 Policy Number: X -loo Contractors and Sub-contractors shall not discriminate because of race, ancestry, place of origin, colour, ethnic origin, citizenship, religion, creed, sex, sexual orientation, age, record of offences (provincial offences and pardoned federal offences), marital.status, family status or handicap. 03 Legislative Compliance Contractors and Sub-contractors shall obey all Federal, Provincial and Municipal Laws, Act, Ordinances, Regulations, Orders-in-Council and By-laws, which could in anyway pertain to the work outlined in the Contract or to the Employees of the Company. Contractors and Sub-contractors shall ensure WSIB compliance and coverage in accordance with relevant legislation and the City's prevailing policy. Without limiting the generality of the foregoing, Contractors and Sub-contractors shall satisfy all statutory requirements imposed by the Occupational Health and Safety Act and Regulations made thereunder, on a contractor, a Constructor and/or Employer with respect to or arising out of the performance of the Contractors and Sub-contractors obligations. 04 Liability The City and any other designate to be fully indemnified and saved harmless from all actions, suits, claims, demands, losses, costs, charges and expenses whatsoever for all damage or injury including death to any person and all damage to any property which may arise directly or indirectly, save.and except for damage caused by the negligence of the Pickering, its employees or designate. The Contractor agrees to defend, fully indemnify and save harmless the city from any and all charges, fines, penalties and costs that may be incurred or paid by the City if the City or any of its employees shall be made a party to any charge under the Occupational Health and SafetyAct or any other Act in relation to any violation of the Act arising out of this contract. 05 Posting All Contractors must post in a conspicuous place on every construction project site, in a location satisfactory to the Project Manager or designate, a copy of the Fair Wage Policy and the Fair Wage Schedule supplied to it by the City which will Policy Title: Page 6 of 11. Policy Number: X _1 011 include a telephone number by which any inquiry regarding the Fair Wage Policy or the Fair Wage Schedule, may be made to City's designate. 06 Records The Contractor must keep records of the names, addresses, wages paid, benefits paid or provided and hours worked for all of its employees. The Contractor shall make these records available for inspection by the City upon the request of the City of Pickering for a period of seven (7) years after final completion of the Construction Contract. The City will only be permitted access to these records upon receipt of a Registered Complaint. The Contractor shall, in any agreement with a Sub-contractor, require the Sub- contractor to comply with all subparagraphs below. The Sub-contractor shall keep records of the names, addresses, wages paid, benefits paid or provided and.hours worked for all of its employees. The Sub-contractor shall make these records available for inspection by the Pickering within five (5) days to the date of the City of Pickering's request. The City will only be permitted access to these records upon receipt of a Registered . Complaint, and only for a period of seven (7) years after final completion of the Construction Contract. The Sub-contractor shall also require its Sub-contractors to assume the same obligations in relation to their own Employees. Failure to provide these records or failure to co-operate as required by this Policy may result in the Contractor or Sub-contractor being subject to the consequences of non-compliance provisions of this Fair Wage Policy. 07 Complaints Any Contractor, Sub-contractor or Employee that tendered on that awarded Construction Contract by the Pickering, may submit a Complaint against that tender award to the City of Pickering with respect to any Contractor or Sub- contractor on that project. Registered Complaints should be submitted at the earliest time but no later than fifteen (15) days following the: Policy Title: Page 7 of 11 Policy Number: X 102 Substantial performance of relevant Construction Contract where a complaint is being made against a Contractor; or substantial completion of relevant Sub- contract to a Construction Contract where a complaint is being made against a Sub-contractor. Upon receipt of a Registered Complaint, together with payment of an investigation fee of $5,000.00, in the form of a certified cheque, the City shall take such. action as it deems necessary to determine whether the Contractor and Sub-contractor involved or named in the Registered Complaint is in compliance with the Fair Wage Policy and the Fair Wage Schedule. If upon investigation, the Registered Complaint is found to be substantiated, the fee of $5,000.00 will be refunded to the person, company or corporation filing the complaint. If the complaint is found to be unsubstantiated, the fee will be retained by the City to cover administrative costs of the investigation and audit process. The City may, at its discretion, waive the fee in cases where an employee of the Contractor or Sub-contractor working on the construction project issues the complaint. The Manager, Supply & Services or designate shall inform the complainant and any Contractor or Sub-contractor involved or named in the complaint, or the results of the City's determination of Contractor's and/or Sub-contractor's compliance or non-compliance with the Fair Wage Policy or Fair Wage Schedule, or both by ordinarymail. The decision of the.Manager, Supply & Services or designate is final. 08 Inspection and Audits The City retains the right to inspect and audit the payroll records (as referred to in the RECORDS section of the Fair Wage Policy) of the Contractor or Sub- contractor at any time during the period of the Construction Contract and up to seven (7) years after the Construction Contract has been completed, as deemed necessary by the City of Pickering. The Contractor shall supply certified copies of any records whenever requested by the City of Pickering within five (5) business days. After completion of the Construction Contract, the City will only be permitted access to these records upon its receipt of a Registered Complaint of non-compliance of a Contractor or Sub-contractor under the Fair Wage Policy. Policy Title: Page 8 of 11 Policy Number: X 103 09 Compliance A Contractor or Sub-contractor shall be in compliance with the wage requirements of the Fair Wage Policy when it pays to its Employees wages, vacation and holiday pay, fringe benefits equal to or greater than the amount set out in the most recently approved Fair Wage Schedule. 10 Consequences of Non-Compliance The Manager, Supply & Services or designate, upon determining that a Contractor or Sub-contractor is in non-compliance of the Fair Wage Policy or the Fair Wage Schedule,*shall undertake the actions set out in subparagraphs (a) and (c) and may undertake the action set out in subparagraph (b). The City shall advise the Contractor and/or Sub-contractor, in writing, sent by ordinary mail, that it has been determined that the Contractor or Sub-contractor is in non-compliance, providing the detail of that non-compliance. The notice shall stipulate that the Contractor and/or Sub-contractor is required to comply and/or immediately pay (retroactively) wages to its workers according to the Fair Wage Schedule applicable at the time of the Construction Contract award, as applicable. If a Contractor or Sub-contractor is provided with notice in accordance with this subparagraph, the fact shall be recorded as an occurrence of non-compliance. The City may withhold an amount of funds equal to the amount by which the Contractor and/or Sub-contractor has benefited from its non- compliance from any payment owed by the City of Pickering to the Contractor until such time as the Contractor or Sub-contractor complies. The City shall assess the base cost of $5,000.00 for the City's inspection, audit or other action as deemed necessary by the City as a result of the determination of non-compliance of the Contractor and/or Sub-contractor, and may deduct that amount from any payment owed by the City of Pickering to the Contractor. In - addition, the Contractor shall be responsible for all of the City's costs beyond the base cost of $5,000.00 to be payable immediately upon demand. Where a Contractor or Sub-contractor has been determined to be in non- compliance with the Fair Wage Schedule for the first time in a five (5) year period, the Manager, Supply & Services or designate may require that Contractor or Sub-contractor, on the next three (3) Municipal Construction Policy Title: Page 9 of 11 Policy Number: X i 104 Contracts on which the Contractor or Sub-contractor performs construction work, to submit an accountant's report which verifies the Contractor's or Sub- contractor's compliance with the Fair Wage Policy and the Fair Wage Schedule. The account's report shall be in a form satisfactory to the City's Director of Corporate Services and Treasurer or designate and shall be submitted after substantial performance of the Construction Contract as defined in the Construction Lien Act, R.S.O., c. C.30, as amended, including successor legislation. Where a Contractor or Sub-contractor has been determined to be in non- compliance with the Fair Wage Schedule for a second or subsequent time within a five (5) year period from the date of the first determination of non- compliance by the City's Manager, Supply & Services or designate, the City may: a) refuse to accept bids, quotations or proposals from that Contractor on Municipal Construction Contracts'for a period of three (3) years, save and except any Construction Contract the Contractor may currently have with the City, b) not allow that Sub-contractor to perform any construction work on any Municipal Construction Contract for a period of three (3) years, save and except any Construction Contract on which the Sub-contractor may currently be performing construction work. The Manager, Supply & Services or designate shall make available to the public a list of all Contractors and Sub-contractors who have been determined to be in non-compliance with the Fair Wage Policy or the Fair Wage Schedule or both and are subject to restrictions in accordance with #2 and/or #3 of the consequences of non-compliance. This list may be made available through the City's web page, posted through the Durham Construction Association web page, included in ICI tender calls, posted in the Purchasing Office or other suitable methods of posting. The Manager, Supply & Services or designate will require a Contractor or Sub- contractor to substitute, at its own cost, any Sub-contractor who, on the first day that the tender for the relevant Construction Contract is available for pick-up, is named on the list referred to in #4 of the Consequences of Non Compliance above, and is identified as not being allowed to perform any construction work on a Construction Contract. Policy Title: Pagel 0 of 11 Policy Number: X 105 City staff or their designates are not in any way liable, obligated or responsible to any Employee, Sub-contractor, Contractor or any other person for the payment of any monies not paid by a Contractor or Sub-contractor in accordance with the Fair Policy or the Fair Wage Schedule or both and the Pickering assumes no responsibility to any Employee, Sub-contractor or Contractor or any. other person for the administration and enforcement of the Fair. Wage Policy or the Fair Wage Schedule or both. Any employee of the Contractor or Sub-contractor is not an employee or deemed an employee of the City for any purpose. Policy Title: Page 11 of 11 Policy Number:. X ATTACHMENT #-.,~TO REPORT #=3 0- to 106- City of Toronto Fair Wage Schedule For. Illustration Purposes Only A Fair Wage Schedule for Pickering will be developed should Council approve the Policy 107 &TORON10 - Corporate Services Fair Wage Office Tel:. 416-392-7300 le Floor, West Tower, City Hall Fax: 416-392-0801 Hotline: 416-392-FAIR E-mail: fairwage@toronto.ca Visit us at www.toronto.ca/fairwage FAIR WAGE SCHEDULE 2003 - 2004 GENERAL CLASSIFICATIONS WEEKLY HOURS EFFECTIVE HOURLY *VACATION AND *FRINGE OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK Security Guards Basic & Night Watch erson May 1/03 $8.75 4% $0.30 44 Security Guards Alarms CCTV Control, Etc. May 1/03 $10.81 4% $0.30 44 Security Guards K-9 Unit May 1/03 $13.46 4% $0.30 44 Security Guards Armed May 1/03 $14.50 4%. $0.30 44 BUILDING CLEANING & MAINTENANCE Cleaner (Light Duty) May 1/03 $9.78 4% $0.42 40 Cleaner (Heavy Duty) May 1/03 $11.33 4% $0.42 40 Handyman/Woman (General Maintenance & Snow Removal May 1/03 $14.16 4% $0.50 50 Window Cleaners: Interior/Exterior May 1/03 $10.04 4% - 44 Ladder May 1/03 $12.87 4% - 44 High Rise May 1/03 $18.54 4% - 44 May 2003 1 108 WEEKLY HOURS EFFECTIVE HOURLY *VACATION AND *FRINGE OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK LANDSCAPING Labourers (New) first 1200 hours only) May 1/03 $19.40 10% $6.39 50 Labourers (including sod roller operators) May 1/03 $22.05 10% $6.39 50 Landscape Gardeners, Farm Tractors without excavating attachments fork lifts, truck drivers, load bearing boom truck Operators, machine driven tools on any other equipment that is operated b remote control May 1/03 $22.20 10% $6.39 50 Form setters, concrete finishers, landscape stone setters of all types, landscape brick setters, landscape irrigation, pipe layers, float drivers, reinforcing steelperson, drillers of all types, high pressure water equipment, small trenchers, mini-skid steel loaders, and all other similar small equipment May 1/03 $22.55 10% $6.39 50 Drivers of Farm Tractor with pulverizing or fine grading equipment May 1/03 $23.35 10% $6.39 50 Dozer & Loader Operator & Backhoe Operator May 1/03 $23.50 10% $6.39 50 Grader Operator May 1/03 $23.60 10% $6.39 50 GARAGE CONCRETE REPAIRS AND RESTORATION Carpentry and Hydro Demolisher Oct 1/03 $25.10 10% $4.00 40 Skilled Workers Oct 1/03 $21.60 10% $4.00 40 Unskilled Labourer Oct 1/03 $16.10 10% $4.00 40 May 2003 2 i 109 For wage rates of classifications not covered by this Schedule, contact the Fair Wage Office. *FRINGE BENEFITS: "Fringe Benefits", shall include such benefits as company pension plans, apprenticeship training, extended health care benefits, dental and prescription drugs, etc.. It does NOT include payroll burden deductions such as C.P.P., E.H.T., W.S.I.B., E.I.C., etc. , * VACATION AND HOLIDAY PAY -10% of the hourly rate. FOR CONTRACTORS THAT DO NOT OFFER "FRINGE BENEFITS" TO THEIR WORKERS, THE FRINGE BENEFITS HOURLY RATE SHALL BE ADDED TO THE HOURLY OR WEEKLY RATE AS SHOWN ABOVE. FAIR WAGE OFFICE 18TH FLOOR, WEST TOWER, CITY HALL TELEPHONE: (416) 392-7300 FACSIMILE: (416) 392-0801 FAIR WAGE COMPLAINTS HOTLINE: (416)192-FAIR E-MAIL: fairwalze@toronto.ca May 2003 3 bITOR-0-NI-0 Services Fair Wage Office Tel: 416-392-7300 18`" Floor, West Tower, City Hall Fax: 416-392-0801 Hotline: 416-392-FAIR E-mail: fairwage@toronto.ca Visit us at www.toronto.ca/fairwage FAIR WAGE SCHEDULE 2003 - 2004 HEAVY CONSTRUCTION WORK This Schedule is applicable to the Construction, Reconstruction, Rehabilitation, Repair of Bridges, Overpasses, Underpasses, etc. This Schedule is no applicable to Resurfacing or New Road Construction, otherwise covered by the Road Building Agreement. WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE (Excluding Tunnelwork DATE RATE HOLIDAY PAY BENEFITS WORK LABOURERS: Group 1 Labourers, including labourers on stripping on all form work, erecting and dismantling of all tubular scaffolding, and wire mesh installers, carpenter's labourers, epoxy injector, group-pointer- painter, mortarperson, dinky motorperson, small mixers (under I yard), concrete workers (screed- person, puddler, floatperson) farm tractor driver, mixer person and route group pump person including non-self propelled slurry pumps, mini skid steer loaders and mini backhoes of 45 h.p. and under and similar small equipment, pitbottom person, signal person, all machinery-driven tools by gas, electric and air, in open cut work, pipelayer's helper pumps - 3" and under, heater person (under 500,000 May 1/03 $28.68 10% $7.05 45 BTU and in groups of 4 or less), Jan 1/04 $28.68 $7.30 fork lift operator, grout plant operator on surface . May 2003 1 ..111 WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK Grou 2 Scootcrete, sheeting and shoring person, timberperson in trench, labourers on wellpoints, pipelayers, 45 maintenance hole constructor and May 1/03 $28.93 10% $7.05 valve chamber constructor Jan 1/04 $28.93 $7.30 Group 3 Reinforced concrete workers, and form setters, jackhammerperson, concrete vibrator person, hydro May 1/03 $28.98 10% $7.05 45 demolisher person Jan 1/04 $28.98 $7.30 Group 4 Pile Installation - all types, steel strut installer and dismantler, concrete-cement finisher precast installer, erector and finisher including post-tensioning, rigging of components and sandblasting, rigger burner, pit miner, drillers, wagon drillers in caissons, underpinning or shaft sinking, lead man - pile driving, grout person, gunnite and shotcrete person, sandblasters, mixerperson and grout pump person including non-self propelled slurry May 1/03 $29.08 10% $7.05 45 pumps, shear-stud installer Jan 1/04 $29.08 $7.30 Group 5 Carpenter Form-builder,. Fabricator, Erector and welder (certified), (Rod May 1/03 $30.68 10% $7.05 45 or Semi-Automatic Jan 1/04 $30.68 $7.30 Group 6 Welder with own rig (rod or semi- May 1/03 $50.16 10% $7.05 45 automatic Jan 1/04 $50.16 $7.30 Group 7 Flag Person May 1/03 $15.77 10% $7.05 50 Jan 1/04 $15.77 $1.30 Group 8 * Casual Watchperson May 1/03 $708.50/wk. 10% $7.05 50 Jan 1/04 $708.50/wk. $7.30 * An employee working as a labourer who is required to do casual watching or work as a flagperson' on a casual or intermittent basis will not have their rate reduced thereby. May 2003 2 1.1 2 WEEKLY TRADE EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF DATE RATE HOLIDAY PAY BENEFITS WORK TUNNEL WORK Group 1 Labourers (on surface) including . labourers on stopping and tabular scaffolding, erectors, carpenter's helpers (on surface), classified labourers; (on surface) Dinky motorperson, small mixers (under 1 yard) sheeting and shoring person, pipelayers helper, mortarperson, concrete workers (screedperson- puddler- floatperson) form setters, farm tractor driver (no excavating attachment), mixer person and grout pump person including non- propelled slung pumps mini skid steer loaders and mini backhoes of 50 h.p. and under and similar small equipment, signal person, deck person, pumps - 3" and under, hopperperson (when needed) heater person (under 500,000 B.T.U. and in groups of 4 or less); carpenter May 1/03 $30.98 10% $7.05 45 improver, fork lift operator Jan 1/04 $30.98 $7.30 Group 2 Pitbottom person, caulkers, cage- signalperson, plain and reinforced concrete work person, scootcrete, underground labourers, muckers, loco-driver, labourers on well - points in tunnel, concrete vibrator person, pipelayer in tunnel, maintenance hole constructor and valve chamber constructor in tunnel, rigger burner, chucktender, concrete May 1/03 $31.53 10% $7.05 45 smoother Jan 1/04 $31.53 $7.30 May 2003 3 WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK Grou 3 Operators of Jackhammers and air- spades in tunnel, miners including jack-leg and stopper person, drillers - all types, locktenders, track person, yard and materials person, diamond-driller, wagon driller, pit miner on caisson, underprinning or shaft sinking, sandblaster gunite person, shotcrete person, powder person, lead concrete person, lead 10% caulker (where 4 or more caulkers May 1/03 $31.83' $7.05 45 are employed on one contract Jan 1/04 $31.83 $7.30 Grou 4 Slush driver, muck-machine driver, grout machine person and driver of concrete placing machine in tunnel, May 1/03 $32.13 10% $7.05 45 Scoop-Tram Jan 1/04 $32.18 $7.30 Grou 5 Lead miner, T.B.M. and micro tunnel operators, tunnel shield driver, tunnel mole driver, carpenter form builder-fabricator-erector, welder (certified) in tunnel (rod or May 1/03 $34.23 10% $7.05 45 semi-automatic Jan 1/04 $34.23 $7.30 Group 6 Welder (certified) with own rig (rod May 1/03 $52.26 10% $7.05 45 or semi-automatic Jan 1/04 $52.26 $7.30 Group 7 Flagperson May 1/03 $15.77 10% $7.05 50 Jan 1/04 $15.77 $7.30 Grou) 8 I Watch Person May 1/03 $708.50 10% $7.05 50 Jan 1/04 $708.50 $7.30 May 2003 4 i I i WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK OPERATING ENGINEERS: 1.1 (A) Engineers operating: cranes with a manufacturers rating May 1/03 $30.38 10% $8.01 40 of 200 ton capacity and over 1.1 (B) Engineers operating: cranes with a manufacturers rating of 100 ton capacity and up to 199 May 1/03 $29.93 10% $8.01 40 ton capacity 1.2 (A) Engineers operating: all conventional and hydraulic type cranes, save and except those set out in Article 1. above 15 ton capacity and over boom truck, clams, shovels, gradalls, backhoes, draglines, piledrivers, all power derricks.gantry cranes, caisson boring machines (over 25 HP), and similar equipment working on land or water, overhead cranes, chimney hoists, and all similar equipment working on land or water, overhead cranes, chimney hoists, multiple drum hoists, single drum hoists (over 12- stories), single drum hoists of manual friction and brake type, and all similar equipment, dredges - suction and dipper, hydraulic jacking equipment on vertical slip forms, hydraulic jacking poles, creter cranes, and scooper. Heavy duty mechanics, qualified welders and 2nd Class May 1/03 $29.18 10% $8.01 40 Stationery Engineers. Mobile um crete 42 metre boom and over 1.2 (B) Pitman type cranes of 10-ton capacity and over May 1/03 $28.70 10% T$8.01 40 May 2003 5 115 WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK 1.3 Operators of: air tuggers used for installation of vesselsi tanks machinery and for steel erection; side booms on land or water; man and material hoist and single drum hoists 12-stories and under not of a manual friction and brake type; elevators, monorails, bulllmoose type, equipment of 5-ton capacity or over; air compressor feeding low pressure into air locks, tunnel mole, Yd'Class Stationery Engineers. Mobile pumpcrete save and except those listed in 1.2(A) above May 1/03 $28.23 10% $8.01 40 1.4 Operators of bulldozers (including 815 type) tractors, scrapers, graders emcos, overhead and front-end loaders side loaders, industrial tractors with excavating attachments, trenching machines, and all similar equipment. Pitman type cranes under 10-ton capacity, mobile pressure grease units, mucking machines, hydraulically operated utility pole hoe diggers, and Dinky locomotive type Engineers 4`s Class Stationery. Engineers. Kubota type backhoe and skid steer loader May 1/03 $28.06 10% $8.01 40 1.5 Operators of: hatching and crushing plants, 6" discharge pumps and over. Wellpoint systems and all similar systems, concrete mixers of 1 cubic yard and over, gas, diesel, or steam driven generator over 50 HP (portable), fork lifts over 8' lifting height, air tuggers except those in Group 1. Caisson boring machines (25 HP and under), drill rigs, post hole diggers, portable air compressors 150 CFM and over, and concrete pumps. May 103 $25.73 10% $8.01 40 Si al erson May 2003 6 WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK 1.6 Operators of. boom trucks, "A" Frames driver mounted compaction units, bullmoose type equipment under 5-ton capacity fork, lifts 8' and under in lifting height and • conveyors. Fireperson. Permanent automatically controlled elevators on commerical and institutional buildings May 1/03 $24.73 10% $8.01 40 1..7(A) Operators of: Pumps under 6" discharge where 3 or more . pumps are employed on the same job site, hydraulic jacking equipment for underground oprations, portable air compressors under 150 CFM where attendant is required, and driver mounted power sweepers. Attendants for forced air, gas or oil burning temporary heating units of 500,000 BTU's or over per hour, or 5 or more on the same job site. Oilers, Oil-Drivers, and Mechanics Helpers May 1/03 $23.54 10% $8.01 40 1.7(B) 1` Year Oilers May 1/03 $23.19 10% $8.01 40 SURVEYORS Party Chief May I/03 $26.70 10% $8.01 40 Instrument Person Ma 1/03 $25.45 10% $8.01 40 Senior Rod eison May 1/03 $22.79 10% $8.01 40 Junior Rod person May 1/03 $20.12 100/0 $8.01 40 May 2003 7 117 All working foreperson will receive a minimum of ninety cents ($0.90) per hour above the trade rate of the majority of the employees in the group supervised. If an employee works more than fifty percent (50%) of their shift on a higher rated job than their regular classification, they will be paid the higher rate for the whole shift. HOURS OF WORK AND OVERTIME (A) The regular working day shall be nine (9) hours/day and subject to variation by mutual consent of the parties, shall be between 7:00 a.m. and 5:00 p.m., from Monday to Friday inclusive. (B) The standard hours of work for all employees other than watchpersons, shall be forty-five (45) hours/week, exclusive of travelling time to and from the job. (C) All work performed in excess of the regular working day of nine (9) hours from Monday to Friday, inclusive, shall be deemed overtime work. The rate of.wage shall be time and one-half (1 '/2) the regular day shift rate. All work on Saturday shall be paid for at double (2) the regular day shift rate. On a three shift operation, the 15'h shift may be worked at straight time on Saturday until 7:00 a.m. and the applicable shift premium shall be paid. NOTE: Overtime at the rate of double (2) the employees' current hourly rate shall be paid to all employees, other than watchperson for all work performed on Sundays and the following Statutory Holidays: New Year's Day, Good Friday, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving Day, Christmas Day, Boxing Day. *FRINGE BENEFITS: "Fringe Benefits" shall include such benefits as company pension plans, apprenticeship training, extended health care benefits, dental and prescription drugs, etc. It does NOT include payroll burden deductions such as C.P.P., E.H.T., W.S.I.B., E.I.C., etc. * VACATION AND HOLIDAY PAY: 10% of the hourly rate. FOR CONTRACTORS THAT DO NOT OFFER, "FRINGE BENEFITS" TO THEIR WORKERS, THE FRINGE BENEFITS HOURLY RATE SHALL BE ADDED. TO THE HOURLY OR WEEKLY RATE AS SHOWN ABOVE. FAIR WAGE OFFICE 18TII FLOOR, WEST TOWER, CITY HALL TELEPHONE: (416) 392-7300 FACSIMILE: (416) 392-0801 FAIR WAGE COMPLAINTS HOTLINE: (416) 392-FAIR E-MAIL: fairwagentoronto.ca I I May 2003 8 i IdTOROMM Fair Wage Office Tel: 416-392-7300 Corporate Services 18th Floor, West Tower, City Hall Fax: 416-392-0801 Hotline: 416-392-FAIR E-mail: fairwage©toronto.ca Visit us at www.toronto.ca/fairwage FAIR WAGE SCHEDULE 2003- 2004 * I.C.I. WORK • Industrial, Commercial, Institutional WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK Asbestos Mechanics May 1/03 $30.44 10% $6.92 40 Asbestos Remover Beginner Nov 1/03 $12.00 10% $4.85 44 Asbestos Remover/Mould Nov 1/03 $21.00 10% $4.85 44 Removers Bricklayers & Stonemasons May 1/03 $30.19 10% $7.34 40 Bricklayers Labourers May 1/03 $28.41 10% $5.86 . 42.5 Builders Labourers May 1/03 $27.05 10% $5.86 40 Carpenters May 1/03 $29.61 10% $7.29 37.5 Cement (Finishers) May 1/03 $28.94 10% $5.20 40 Cement (Masons) May 1/03 $30.29 10% $3.91 40 Caulkers (Carpenters) May 1/03 $27.22 10% $5.04 37.5 Combustion Mechanics Jun 29/03 $30.40 12% $7.63 40 Boilermakers Concrete Labourers May 1/03 $27.42 10% $5.86 40 Demolition Labourers May 1/03 $20.56 10% $4.55 40 Demolition Qualified Burners May 1/03 $21.79 10% $4.55 40 Demolition Truck Drivers & May 1/03 $21.80 10% $4.55 40 Machine Operators Drywall Taper (Plasterer) May 1/03 $30.05 10% $4.50 40 May 1/04 $30.60 $4.60 Electrical Workers May 1/03 $30.81 13% $6.83 37.5 Elevator Constructors May 1/03 $36.57 12% $3.56 40 Formwork Labourers May 1/03 $27.42 10°/u $5.86 42.5 May 2003. 1 119 WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK Foreman Swamper May 1/03 $27.74 10% $5.86 42.5 Glaziers May 1/03 $29.11 10% $4.82 37.5 I Iron Workers (Ornamental) May 1/03 $29.54 10% $7.45 40 Iron Workers (Structural) May 1/03. $29.54 10% $7.45 40 Jackhammer Operations Labourers May 1/03 $27.42. 10% $5.86 40 Labourer-Cleaner (Sorter Labourer) May 1/03 $20.97. 10% $5.86 40 Landscape Irrigation Pipelayers May 1/03 $22.55 10% $7.39 50 Landscape Labourers May 1/03 $22.05 10% $7.39 50 Lathers (Drywall Acoustics, May 1/03 $28.81 10% $6.23 50 Boarders, Insulation Marble Masons Nov 1/03 $28.47 10% $5.34 40 Marble & Tile Helpers Nov 1/03 $26.90 10% $5.34 40 Millwrights May 1/03 $29.99 10% $6.95 40 Mortarperson Labourers May 1/03 $28.41 10% $5.86 40 Painters & Decorators May 1/03 $28.35 10% $4.85 40 Pavement Markers - Labourers Jan 1/03 $16.37 10% $2.10 40 Jan 1/04 $16.69 $2.20 Pavement Markers - Heavy Jan 1/03 $19.35 10% $5.04 40 Equipment Operators Jan 1/04 $19.74 $5.14 Traffic Sign - Labourers Jan 1/03 $19.35 10% $4.04 40 Jan 1/04 $19.74 $4.44 Pit Miner Driller, Casissons & May 1/03 $27.35 10% $5.86 40 Wagon Driller Plasterers' Labourers May 1/03 $27.25 10% $5.96 40 Plumbers & Steamfitters May 1/03 $30.81 10% $8.43 37.5 Refrigeration Mechanics May 1/03 $34.47 10% $6.99 37.5 Resilient Floor Workers May 1/03 $27.91 10% $6.34 37.5 Restoration Steeplejacks May 1/03 $24.80 10% $2.71 40 Rod Installer May 1/03 $28.57 10% $7.53 40 Roofer (Foreperson) May 1/03 $31.52 10% $3.91 40 Roofer (Journeyperson) May 1/03 $30.45 10% $3.91 40 Roofer (Material Handler) May 1/03 $29.20 10% $3.91 40 Sheet Metal Workers May 1/03 $28.94 10% $8.09 40 Sheeter/Decker Mechanic May 1/03 $28.75 10% $8.04 40 May 2003 2 120 WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK Sheeter/Decker Assistant May 1/03 $25.18 10% $8.04 40 Sheeter/Decker Material Handler May 1/03 $22.60 100/0 $8.04 40 Sheeter/Decker: Probationary May 1/03 $15.22 10% $8.04 40 Employee Sprinkler (Automatic Fire) May 1/03 $33.14 10% $5.43 40 Tile & Terrazzo Mechanics May 1/03 $27.85 10% $5.34 40 Nov 1/03 $28.30 $5.34 Tile & Terrazzo Helpers Nov 1/03 $26.99 10% $5.34 40 Vibrator Labourers May 1/03 $27.56 10% $5.96 42.5 Watchperson & Flagperson when May 1/03 $25.05 10% $5.96 40 Labourers are employed as Watch erson Waterblasters May 1/03 $27.05 10% $5.96 40 Waterproofers May 1/03 $28.67 10%0 $5.54 40 Welders (Acetylene, Electric, etc.) Same rate as the highest trade with whom they are working. Welder (Certified) May 1/03 $29.13 100/0 $5.84 40 Working Foreman/Woman May 1/03 $30.48 10% $5.84 40 TRUCK DRIVERS CLASSIFICATIONS Class #1 - Warehouse and storekeeper, float truck and trailer, load bearing boom truck, haulpack May 1/03 $26.67 10% $5.75 50 driver Class #2 - Ready mix, euclid type, DW 20 & 21 rear end, ejectors, and May 1/03 $26.63 10% $5.75 50 belly dumps, farm tractor, driver with 5's wheel hook u read mix Driver classification working from a portable batch plant set up by the May 1/03 $26.63 10% $5.75 50 Prime or General Contractor Class #3 - Dumpcrete, fork lift driver, 5 ton and over in warehouse, May 1/03 $26.57 10% $5.75 50 compound and storage area Class #4 - Dump truck, service trucks, flat and stake trucks, fuel trucks, bulk lift, form tractor May 1/03 $26.53 10% $5.75 50 operators, warehouse helper, fork lift driver and 5 tons May 2003 3 121 WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK FOREMAN/WOMAN: $1.00/hour over all Class Rates DRIVERS HOURS OF WORK: ICI - 40 Hours SITE PREPARATION - 45 Hours GENERAL CONTRACTORS SECTION Oneratine Engineers: 1.1(A) Engineers operating: cranes with a manufacturers rating of 200 ton capacity and over. May 1/03 $30.38 10% $8.01 40 1.1(B) Engineers operating: cranes with a manufacturers rating of 100 ton capacity and up to 199 ton capacity, skyway, climbing, G.C.I., hammerhead and kangaroo type May 1/03 $29.93 10% $8.01 40 cranes 1.2(A) Engineers operating: all conventional and hydraulic type cranes, save and except those set out in Article L I above, 15 ton capacity and over boom truck, clams, shovels, gradalls, backhoes, draglines, piledrivers, all power derricks, gantry cranes, caisson boring machines (over 25 HP), and similar drill rigs,. mine hoists, and all similar equipment working on land or water, overhead cranes, chimney hoists, multiple drum hoists, single drum hoists (over 12-stories), single drum hoists of manual friction and brake type, and all similar equipment, dredges - suction and dipper, hydraulic jacking equipment on vertical slip forms, hydraulic jacking poles, creter cranes, and hydraulic scooper. Heavy duty mechanics, qualified welders and 2ad Class Stationary Engineers. Mobile pumpcrete with 42 metre boom and. over. May 1/03 $29.18 10% $8.01 40 1.2(B) Pitman type cranes of 10-ton capacity and over. May 1/03 $28.70 10% $8.01 40 i May 2003 4 .4rZZ WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK 1.3 Operators of air tuggers used for installation of vessels, tanks machinery and for steel erection; side booms on land or water; man and material hoist. and single drum hoists 12-stories and under not of a manual friction and brake type; elevators except as set out in Article 1.6, monorails, bullmoose type, equipment of 5-ton capacity or over; - air compressor. feeding low pressure into air locks, tunnel mole, 3'd Class Stationery Engineers. Mobile pumpcrete save and except those listed in 1.2(A) above. May 1/03 $28.23 10% $8.01 40 1.4 Operators of bulldozers (including 815 type) tractors, scrapers, graders, emcos, overhead and front-end loaders side loaders, industrial tractors with excavating attachments, trenching machines, and all similar equipment. Pitman type cranes under 10-ton capacity, mobile pressure grease units, mucking machines, hydraulically operated utility pole hole diggers, and Dinky locomotive type engines. 4th Class Stationery Engineers. Kubota type backhoe and skid steer loader. May 1/03 $28.06 10% $8.01 40 1.5 Operators of batching and crushing plants, 6" discharge pumps and over, wellpoint systems and all similar systems, concrete mixers of 1 cubic yard and over, gas, diesel, or steam driven generator over 50 HP (portable), fork lifts over 8' lifting height, air tuggers except those in Group 1.3, Caisson boring machines (25 HP and under), drill rigs, post hole diggers, portable air May 1/03 $25.73 10% $8.01 40 compressors 150 CFM and over, and concrete pumps, signal person. 1.6 Operators of boom trucks, "A" Frames driver mounted compaction units, bullmoose type equipment under 5-ton capacity, fork lifts 8' and under in lifting height and conveyors. Fireman/Woman. Permanent automatically controlled elevators on commercial and May 1/03 $24.73 10% $8.01 40 institutional buildings. I May 2003 g 123 WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK 1.7(A) Operators of: Pumps under 6" discharge where 3 or more pumps. are employed on the same job site, . hydraulic jacking equipment for underground operations, portable air compressors under 150 CFM where attendant is required, and driver mounted power sweepers. Attendants for forced air, gas or oil burning temporary heating units of 500,000 BTU's or over per hour, or 5 or more on the same job site. 40 Oilers, oil- drivers, and mechanics May 1/03 $23.54 10% $8.01 helpers. 1.7(B) 1 n Year Oilers. May 1/03 $23.19 10% $8.01 40 Surveyors: Party Chief May 1/03 $26.70 10% $8.01 40 Instrument Person May 1103 $25.45 10% $8.01 40 Senior Rodperson May 1/03 $22.79 10% $8.01 40 Junior Rodperson May 1/03 $20.12 10% $8.01 .40 May 2003 6 124 HOURS OF WORK AND OVERTIME (A) For Building Construction (Operating Engineers) Eight (8) hours/day, 40 hours/week, Monday to Friday, inclusive, time and one-half of the regular day shift rate shall be paid for the first hour of overtime; all work in excess of hours noted & Saturday, Sunday and Holidays, double the regular day shift rate. (B) Excavations, Site Preparation, Sewers and Watermains. Site preparation shall mean the excavating of ground to sub-grade level and shall not include pile-driving, drilling, boring ductwork or tunnel work. Ten (10) hours/day, 50 hours/week, Monday to Friday inclusive. IRON WORKERS (Structural, architectural): includes Rivetters, Riggers, Heaters, Sash Erectors and Machinery Movers. *FRINGE BENEFITS: "Fringe Benefits" shall include such benefits as company pension plans, apprenticeship training, extended health care benefits, dental and prescription drugs, etc. It does NOT include payroll burden deductions such as C.P.P., E.H.T., W.S.I.B., E.I.C., etc. * VACATION AND HOLIDAY PAY: FOR CONTRACTORS THAT DO NOT OFFER "FRINGE BENEFITS" TO THEIR WORKERS, THE FRINGE BENEFITS HOURLY RATE SHALL BE ADDED TO THE HOURLY OR WEEKLY RATE AS SHOWN ABOVE. FAIR WAGE OFFICE 18'x' FLOOR, WEST TOWER, CITY HALL TELEPHONE: (416) 392-7300 FACSIMILE: (416) 392-0801 FAIR WAGE COMPLAINTS HOTLINE: (416) 392-FAIR E-MAIL: fairwage(altoronto.ca i May 2003 7 125 &TOR' NM Corporate Services Fair Wage Office Tel: 416-392-7300 18`~ Floor, West Tower, City Hall Fax: 416-392-0801 Hotline: 416-392-FAIR E-mail: fairwage aC3toronto.ca Visit us at www.toronto.calrairwage FAIR WAGE SCHEDULE 2003- 2004 ROAD BUILDING WORK This schedule is applicable to Resurfacing and New Road Construction, including Parking Lots. This schedule is not applicable to bridge coverleaf or construction work, otherwise covered by Heavy Construction Agreement. WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK CONSTRUCTION Labourers: Labourers (incl. wiremesh and steel reinforcing), Operators of pumps three inches in diameter and under. Interlocking stone and Gabion Installers. Labourers' (operating all machine-driven tools by gas, air or electricity, including plate tempers), operators of self-propelled hand May 1/03 $26.19 10% $6.74 50 compactors walk behind); Jan 1/04 $26.19 $6.99 Concrete Workers Screedperson, Puddlers,Floatperson. Fence Erectors (chain link and other types including snow fences). Guard Rail Installers. Diamond Saw Operators Qackhammerperson) Sound Barrier Erectors. May 1/03 $26.19 10% $6.74 50 Maintenance Hole Builders. Jan 1/04 $26.19 $6.99 Grade Person, Asphalt Rakers Concrete Road, curb and side walk finisher, Form Setters. Curb Setters. Brick Setters. Pipe Layers. Curb Machine Operators. Concrete Paving Track Setters. Tail End May 1/03 $27.69 10% $6.74 50 Paver and Asphalt Grinder. Jan 1/04 $27.69 $6.99 Traffic Control Person; Casual May 1/03 $18.19 10% $6.74 50 Watch Person Jan 1/04 $18.19 $6.99 May 2003 1 126 WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK *Watchperson (for 6 nights duty/10 May 1/03 $626.50 per wk 10% $6.74 50 hours/day 50 hours/week . Jan 1/04 $626.50 per wk $6.99 * An employee working as a labourer who is required to do casual watching or work as a flagperson on a casual or intermittent basis, will not have their rate reduced thereb . TRUCK DRIVERS: May 1/03 $28.75 10% $4.50 50 Truck Drivers - Including off Jan 1/04 $28.98 $4.50 Highway Fuel Truck Drivers May 1/03 $28.75 10% $4.50 50 Jan 1/04 $28.98 $4.50 Load Bearing Boom Drivers, Dumpcrete Drivers, and Pup Dump May 1/03 $28.85 10% $4.50 50 Trailer Drivers, Flo Boy and Tractor Jan 1/04 $29.08 $4.50 Trailer; Dump Truck Tag-a-long over 15 Ton Truck Train Drivers, Custom Mobile May 1/03 $28.95 10% $4.50 50 Mixer Units (truck or trailer Jan 1/04 $29.18 $4.50 mounted Float Drivers May 1/03 $29.35 10% $4.50 50 Jan 1/04 $29.58 $4.50 OPERATING ENGINEERS: Shovels, Backhoes, Dragline, May 1/03 $28.32 10% $7.85 50 Gradall Clams (on site), Grader Jan 1/04 $28.55 $7.85 Operator "A" Clam Operator (yard), Mechanics, May 1/03 $28.06 10% $7.85 50 Welders Jan I/04 $28.29 $7.85 Pitman-Type Operator (hydra-lift, May 1/03 $27.86 10% $7.85 50 truck-mounted hydraulic crane Jan 1/04 $28.09 $7.85 Bulldozer Operators (D-4 equiv. or over), Front-end Loader Operators (I cu. yd. and over), Scrapers - self- Mayl/03 $27.72 10% $7.85 50 propelled. Mixer Person on Asphalt Jan 1/04 $27.95 $7.85 Plant. Concrete Curb Machine Operator. Asphalt Spreader Operator (self-propelled) Concrete Paver Operators, Asphalt May 1/03 $27.62 10% $7.85 50 Plainer Operators "A", Engineers Jan 1/04 $27.85 $7.85 on Boilers with papers) I i May 2003 2 127 WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK Farm & Industrial - type tractor with May 1/03 $27.46 10% $7.85 50 excavating attachments Operators, Jan 1/04 $27.69 $7.85 Grader Operator "B", Asphalt/Rollerperson "A", Boiler Fire person without papers) Roller Operator (asphalt) "B" May 1/03 $27.10 10% $7.85 50 . Jan 1/04 $27.33 $7.85 Bulldozer Operators (under D-4 or Equivalent), Front-end Loader May 1/03 $27.06 10% $7.85 50 Operator (under I cu. yd.) Packer Jan 1/04 $27.25 $7.85 with blade Farm and Industrial Type Tractor Operator (towing compaction units), May 1/03 $25.32 10% $7.85 50 Grade Rollerperson, including self- Jan 1/04 $25.55 $7.85 propelled rubber tire rollers. Asphalt Planer "B" (max. 2' wide) SHIFT PREMIUM A shift premium of $1.75/hour will be paid for all work performed on a shift starting after 4:00 p.m. HOURS OF WORK AND OVERTIME (A) The standard hours of work for all employees, other than watchperson and engineers on boilers shall be based on 50 hours/week exclusive of travelling time to and from the job. (B) Overtime at the rate of time and one-half the employee's current hourly rate shall be paid to all employees, other than watchperson; for all work performed in excess of 10 hours/day, or in excess of 50 hour/week or on Saturdays. On a three shift operation, the 156' shift may be worked at straight time on Saturday unti17:00 a.m. and the applicable shift premium shall be paid. . (C) Overtime at the rate of double the employee's current hourly rate shall be paid to all employees, other than watchperson and Engineers on boilers for all work performed on Sundays and on the following Statutory Holidays: New Year's Day, Good Friday, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving Day, Christmas Day and Boxing Day. The provision of this sub-paragraph do not apply to repairer in emergency. (D) Watchperson and engineers on boilers shall receive overtime payment at the rate of time and one-half the employee's current hourly rate for all work performed on such employee's seventh consecutive shift. May 2003. 3 128 *FRINGE BENEFITS: "Fringe Benefits" shall include such benefits as company pension plans, apprenticeship training, extended health care benefits, dental and prescription drugs, etc. It does NOT include payroll burden deductions such as C.P.P., E.H.T., f W.S.I.B., E.I.C., etc. * VACATION AND HOLIDAY PAY: 10% of the hourly rate. FOR CONTRACTORS THAT DO NOT OFFER "FRINGE BENEFITS" TO THEIR WORKERS, THE FRINGE BENEFITS HOURLY RATE SHALL BE ADDED TO THE. HOURLY OR WEEKLY RATE AS SHOWN ABOVE. FAIR WAGE OFFICE 18TH FLOOR, WEST TOWER, CITY HALL TELEPHONE: (416) 392-7300 FACSIMILE: (416) 392-0801 FAIR WAGE COMPLAINTS HOTLINE: (416) 392-FAIR E-MAIL: fairwage a,toronto.ca May 2003 4 129 TORONTO Corporate Services Fair Wage Office Tel: 416-392-7300 18t° Floor, West Tower, City Hall Fax: 416-392-0801 Hotline: 416-392-FAIR E-mail: fairwaae@toronto.ca Visit us at www.toronto.calfairwage FAIR WAGE SCHEDULE 2003 - .2004 SEWER AND WATERMAIN CONSTRUCTION WEEKLY EFFECTIVE HOURLY .*VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK SCHEDULE"A" "Open Cut" Sewer CLASSIFICATION: LABOURERS: Labourers; Pump person, (3" May 1/03 $26.79 10% $6.50 50 discharge and under); Heater person Jan 1/04 $26.79 $6.75 u to 5 heaters Small Mixer Driver (under 1 yard); Dinky Mortar person; Sheeting and Shoring person; Miners and Driller's Helper; Power person helper; Motor person; Scootcrete Driver; Screed person; Puddlers; Float person on Concrete; Jackhammer person; Well-point installer; Encasement .May 1/03 $27.39 10% $6.50 50 Form Setters; Signal person; Jan 1/04. $27.39 $6.75 Rammax Tamper Pipelayer's Helper; Concrete finishers; Concrete Patcher Inside Pipe; Catch Basin Installer; Diamond saw cutter; Watermain Tapper; Precast Manhole Installer; May 1/03 $27.53 10% $6.50 50 Manhole Builders, Drillers, All types Jan 1/04 $27.53 $6.75 including associated equipment May 2003 1 130 WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK Caulker (cast iron, tile, concrete, asbestos, cement, plastic, etc.); Wagon Driller; Box Sewer Constructor Form Setter and May 1/03 $27.79 10% $6.50 50 Reinforcing person and Fusion Jan 1/04 $27.79 $6.75 Welder Pipelayers (including use of laser for pipe-laying); Manhole and Valve Chamber Constructor; Top person; Miners; Drillers, Shaft Sinker Timber person; Grout- May. 1/03 $28.79 10% $6:50 50 Machine person; Powder person Jan 1/04 $28.79 $6.75 Blaster; Welder Watch person (for 6 nights duty) May 1/03 $833.00 per wk. 10% $6.50 50 Jan 1/04 $833.00 per wk. $6.75 LABOURERS: *Traffic Control person & Casual Watchperson May 1/03 $20.94 10% $6.50 50 Jan 1/04 $21.39 $6.75 * All employees working as a labourer who is required to do casual watching or work as a flagperson on a casual or intermittent basis will not have his/her rate reduced thereby. TRUCK DRIVERS: Drivers of dump trucks, pickup service trucks, bulk lift trucks, farm tractors without attachments and off May 1/03 $29.12 10% $4.50 50 highway trucks Jan 1/04 $29.35 $4.50 Fuel Truck Drivers and Load bearing May 1/03 $2932 10% $4.50 50 Boom Truck Drivers Jan 1/04 $29.45 $4.50 Float Drivers, Custom Mobile Mixer May 1/03 $29.52 10% $4.50 50 Units, Truck or Trailor Mounted Jan 1/04 $29.75 $4.50 OPERATING ENGINEERS: Engineers operating cranes, clams, shovels, backhoes, derricks, pile- drivers, gradalls, mobile cranes, caisson boring machines 25 HP and May 1/03 $29.17 10% $7.95 50 over, side booms and similar Jan 1/04 $29.40 ' $7.95 equipment Grade "A" and fine grade bulldozer Operators May 1/03 $28.92 10% $7.95 50 Jan 1/04 $29.15 $7.95 May 2003 2 1 31. WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK Heavy-duty field mechanics, equipment repair welders, operators of pitman type crane May 1/03 $28.67 10% $7.95 50 (Hydra-Lift truck Mounted Jan 1/04 $28.90 $7.95 hydraulic) Operators of bulldozers, tractors, scrapers, emcos, graders "B", overhead loaders and similar Equipment, farm and industrial tractors with excavating attachments, trenching machines, May 1/03 $28.57 10% $7.95 50 and caisson boring machines under Jan 1/04 $28.80 $7.95 25 HP Service person on shovels; compressors, Pumps, Boom Truck Drivers; Operators of 5 or more May 1/03 $27.82 10% $7.95 50 heaters; Packer with glade Jan 1/04 $28.05 $7.95 Self propelled Rollers May 1/03 $25.70 10% $7.95 50 Jan 1/04 $25.93 $7.95 Oilers, Greasers, Mechanics: Helpers Third Year: May 1/03 $26.60 10% $7.95 50 Jan 1/04 $26.83 $7.95 Second Year: May 1/03 $25.60 10% $7.95 50 Jan 1/04 $25.83 $7.95 First Year: May 1/03 $24.60 10% $7.95 50 Jan 1/04 $24.83 $7.95 HOURS OF WORK AND OVERTIME (A) Overtime at the rate of time and one-half the employee's hourly rate shall be paid to all employees, except watchperson, for all work performed in excess of forty-eight hours/week, made up of four ten hour days, Monday to Thursday inclusive, and one eight-hour day on Friday, excluding travelling time to and from the job. It is understood that if there is inclement weather during the week, that Friday will be a ten-hour day, if required. (B) Overtime at the rate of time and one-half the employee's current hourly rate shall be paid to all employees, except watchperson and float drivers, for all work performed on Saturdays. Operating Engineers double time for Saturdays. (C) Overtime at the rate of double the employee's current hourly rate shall be paid for all employees except watchperson, for all work performed on Sundays or the Statutory Holidays listed namely (Labourers & Teamsters): New Year's Day, Good Friday, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving Day, Christmas Day, and Boxing Day. (D) Watchpersons shall receive overtime payment at the rate of time and one-half the employee's current hourly pay rate for all work performed on such employee's seventh consecutive shift. SHIFT PREMIUM - OPERATING ENGINEERS A shift premium of $1.00/hour will be paid for all work performed on any shift commencing after 12:00 o'clock noon or before 5:30 o'clock a.m. May 2003 3 i 132 WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK SCHEDULE "B" Tunnel Work A schedule applying to "Tunnel Work" which is to be interpreted to mean project called as a Tunnel, and may not include Tunnel Work which is incidental to "Open Cut" work for Sewer and Watermain Construction up to 50 feet in length CLASSIFICATION: LABOURERS: Labourers (surface); Signal person; Dock person; Pump person (3"); Hopper person; Heater person (up to 5 heaters); Yard and Material May 1/03 $29.09 10% $6.50 40 person; Gage Tender; Wellpoint Jan 1/04 $29.09 $6.75 Installers; Drillers, all types including associated equipment Labourers (underground); Muckers; Loco Driver; Track person; Caulker; Shaft Sinker Helper; Concrete. Finisher; Concrete Driller May 1/03 $30.04 10% .$6.50 40 Worker; Setter; Mixer person (under Jan 1/04 $30.04 $6.75 l and Locktender May 1/03 $30.39 10% $6.50 40 Jan 1/04 $30.39 $6.75 Miner; Driller; Diamond Driller; Timber person; Jackleg person; Mucking Machine. Driver; Shaft Sinker; Pipe Jacker Slush Drivers; Wagon Driller (underground); Cole Cutter Driver; Powder person Blaster Lead Concrete person; all labourers on pile-driver operations; Miner for caisson and underpinning; Maintenance hole Constructor; Operators of air spades and jackhammer at the face ; Nozzle person and Concrete Pump; Reinforcing Rod Placer; Cement May 1/03- $31.04 10% $6.50 40 Mason; Welder; Shotcrete person; Jan 1/04 $31.04 $6.75 Stopper person; Auger person; Carpenter May 2003 4 • I 133 WEEKLY EFFECTIVE HOURLY *VACATION AND. *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK Lead Miner; Tunnel Shield, Mole May 1/03 $31.89 10% $6.50 40 and similar equipment Drivers; Jan 1/04 $32.04 $6.75 Working Fore person i * Watch person (for 6 nights duty) May 1/03 $833.00 per wk. 10% $6.50 50 Jan 1/04 $833.00 net wk. $6.75 * An employee working as a labourer who is required to do casual watching or work as a flagperson on a casual or intermittent basis will not have his/her rate reduced thereby. TRUCK DRIVERS: Drivers of Dump Trucks, pickup service trucks, bulk lift trucks and May 1/03 $29.64 10% $4.50 40 farm tractors without attachments, Jan 1/04 $29.87 $4.50 off highway trucks Fuel Truck Drivers, Load bearing boom truck drivers and drivers of May 1/03 $29.74 10% $4.50 40 dump trucks with tag along Jan 1/04 $29.97 $4.50 attachments over 15 tons Float Drivers, custom mobile mixer May 1/03 $29.42 10% $4.50 40 units truck or trailer mounted Jan 1/04 $29.64 $4.50 OPERATING ENGINEERS: Engineers operating all hoists, hoisting materials out of shafts, tuggers and derricks with lifting ll capacity over 2,000 lbs.; compressor May 1/03 $29.14 10% $7.95 45 hose set-up person Jan 1/04 $29.37 $7.95 Heavy-duty Field Mechanics; Engineers operating shaft hoist, tuggers and derricks 2,000 lbs. or less; Compressor Operators 500 CFM or over Jan 1/04 $29.12 10% $7.95 45 I May 2003 5 134- PREMIUM RATES IN COMPRESSED AIR: (LABOURERS AND TRUCK DRIVERS CLASSIFICATIONS ONLY): The following sliding scale of premium rates shall apply to workers in compressed air: PREMIUM PER SHIFT AIR PRESSURE MAY 1/00 . 1 to 14 pounds $16.00 15 to 20 pounds $19.50 21 pounds $23.50 (A) For air pressure over twenty-one pounds (21 lbs.), the employer agrees to pay two dollars ($2.00) per pound compressed air premium for each pound over twenty-one pounds (21 ibs.), in addition to the twenty-one pound (21 lb.) rate. i (B) Where employees are required to work in compressed air, they shall receive a minimum of nine (9) hours/day or shift; it being understood and agreed that the ninth (9th) hour shall be paid at straight time rates. (C) It is understood and agreed that air pressure premium will be paid/shift regardless of the time spent by an employee in compressed air, save and except when an employee voluntarily leaves the air. Rest periods as required by law when working under air pressure are to be paid, and no deduction will be made for a meal break falling in the rest period between the two working periods. (D) HOT BEVERAGES (i) The employer shall, at his own expense, supply sugar and hot beverages for employees working in compressed air during rest periods. (ii) Containers and cups for the beverages required as outlined above, shall be maintained in a clean and sanitary condition and kept stored in a closed container. PREMIUM RATES IN COMPRESSED AIR: (OPERATING ENGINEERS CLASSIFICATION ONLY): PREMIUM PER SHIFT AIR PRESSURE MAY 1/00 i I to 14 pounds $16.00 15 to 20 pounds $19.50 2.1 pounds $23.50 Over 21 pounds $2.00/lb over and above the rate for 21 lbs. May 2003 6 i 135 HOURS OF WORK AND OVERTIME (A) Overtime at the rate of time and one-half the employee's current hourly rate shall be paid to all employees, except watchpersons, for all work performed in excess of eighthours/day, Monday to Friday inclusive, excluding travelling time to and from the job, and excluding work in compressed air where overtime at the rate of one and one-half shall be paid for work in excess of nine (9) hours/day. (B) Overtime at the rate of time and one-half the employee's current hourly rate shall be paid to all employees except watchperson, for all work performed on Saturday. All Operating Engineers classifications will be paid double the employees hourly rate for all work performed on Saturday. (C) Overtime at the rate of double the employee's current hourly rate shall be paid to all employees except watchperson, for all work performed on Sundays and on the following Statutory Holidays - namely (Labourers): New Year's Day, Good Friday, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving Day, Christmas Day, and Boxing Day. (D) Watchpersons shall receive overtime payment at the rate of time and one-half the employee's current hourly rate for all work performed on such employee's seventh consecutive shift. SHIFT PREMIUM (LABOURERS AND TEAMSTERS ONLY) Second Shift and Third Shift. $2.50 OPERATING ENGINEERS $2.45/hour for second and third shift. *FRINGE BENEFITS: "Fringe Benefits" shall include such benefits as company pension plans, apprenticeship training, extended health care benefits, dental and prescription drugs, etc. It does NOT include payroll burden deductions such as C.P.P., E.H.T., W.S.I.B., E.I.C., etc. * VACATION AND HOLIDAY PAY: 10% of the hourly rate. FOR CONTRACTORS THAT DO NOT OFFER "FRINGE BENEFITS" TO THEIR WORKERS, THE FRINGE BENEFITS HOURLY RATE SHALL BE ADDED TO THE HOURLY OR WEEKLY RATE AS SHOWN ABOVE. FAIR WAGE AND OFFICE 18TH FLOOR, WEST TOWER, CITY HALL TELEPHONE: (416) 392-7300 FACSIMILE: (416) 392-0801 FAIR WAGE COMPLAINTS HOTLINE: (416) 392-FAIR E-MAIL: fairwageatoronto.ca May 2003 7 136 biTOROMO Corporate Services Fair Wage Office Tel: 416-392-7300 18'" Floor, West Tower, City Hall Fax: 416-392-0801 Hotline: 416-392-FAIR E-mail: fairwage@tomnto.ca Visit us at www.toronto.ca/fairwage FAIR WAGE SCHEDULE 2003 - 2004 UTILITY WORK WEEKLY EFFECTIVE HOURLY -VACATION AND -FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK Labourers (unskilled) May 1/03 $26.79 10% $6.30 40 Jan 1/04 $26.79 $6.40 Powderperson Helper May 1/03 $26.84 10% $6.30 40 Jan 1/04 $26.84 $6.40 Labourers (semi-skilled) strippers; scootcrete and calf dozer; driver; portable compressor; small mixer and pump person (4" discharge and under); groutperson; mortar person; May 1/03 $26.89 10% $6.30 40 job site storeperson and lumber yard Jan 1/04 $26.89 $6.40 attendant; farm tractor driver Labourers (skilled - Group No. 1) pipelayers (excluding conduit); jack May 1/,03 $26.94 10% $6.30 40 hammer operator; air auger person; Jan 1/04 $26.94 $6.40 form setters; concrete finishers Labourers (skilled - Group No. 2) May 1/03 $26.99 10% $6.30 40 drillers (all types); wagon drills, Jan 1/04 $26.99 $6.40 etc.; owde erson Labourers (skilled - Group No. 3) May 1/03 $27.29 10% $6.30 40 Carpenters; lineperson; float driver; Jan 1/04 $27.29 $6.40 truck driver Labourers (skilled - Group No. 4) tunnel workers; where tunnel is in May 1/03 $27.79 10% $6.30 40 excess of ten feet in length, Jan 1/04 $27.79 $6.40 excluding shallow tree tunnels Working foreperson May 1/03 $27.64 10% $6.30 40 Jan 1/04 $27.64 $6.40 May 2003 1 137 WEEKLY EFFECTIVE HOURLY *VACATION AND *FRINGE HOURS OF TRADE DATE RATE HOLIDAY PAY BENEFITS WORK Flagperson May 1/03 $18.92 10% $6.30 40 Jan 1/04 $18.92 $6.40 Watchperson (48 hours per week) May 1/03 $849.28 per wk. 10% $6.30 48 Jan 1/04 $849.24 per wk. $6.40 NOTE: An employee working as a labourer who is required to do casual watching or work as a flagperson on a casual or intermittent basis will not have his/her rate reduced thereby. OPERATING ENGINEERS Engineers operating cranes, including Austin Western type & Pitman-type (over 8 ton), backhoes, May 1/03 $27.91 10% $7.92 40 hydraulic or cable type side booms, Jan 1/04 $28.14 $7.92 gradalls and similar equipment Mechanics & welders (on site), operators of bulldozers D4 and over; front-end loaders, Icu. yd. & over; industrial type backhoes with excavating attachments; trenching May 1/03 $27.43 10% $7.92 40 machines over Davis 300 and Jan 1/04 $27.66 $7.92 similar equipment to foregoing Operators of bulldozers, under D4; well points and all types of dewatering systems, 6" discharge and over; Front-end loaders under 1 cu. yd; augers and boring equipment other than air activated under 8" (save as excluded in memorandum May 1/03 $27.23 10% $7.92 40 between I.U.O.E., & Labourers' Jan 1/04 $27.45 $7.92 International Union Shop and standby time May 1/03 $27.08 10% $7.92 40 Jan 1/04 $27.30 $7.92 TRAINEES SHALL BE EMPLOYED AT A PERCENTAGE OF THE APPLICABLE JOURNEYMAN RATE AS FOLLOWS: First 1500 hours =75% Second 1500 hours = 90% I May 2003 2 i *FRINGE BENEFITS: "Fringe Benefits" shall include such benefits as company pension plans, apprenticeship training, extended health care benefits, dental and prescription drugs, etc. It does NOT include payroll burden deductions such as C.P.P., E.H.T., W.S.I.B., E.I.C., etc. * VACATION AND HOLIDAY PAY; 10% of the hourly rate. FOR CONTRACTORS THAT DO NOT OFFER "FRINGE BENEFITS" TO THEIR WORKERS, THE FRINGE BENEFITS HOURLY RATE SHALL BE ADDED TO THE HOURLY OR WEEKLY RATE AS SHOWN ABOVE. FAIR WAGE OFFICE 18TH FLOOR, WEST TOWER, CITY HALL TELEPHONE: (416) 392-7300 FACSIMILE: (416) 392-0801 FAIR WAGE COMPLAINTS HOTLINE: (416) 392-FAIR E-MAIL: fairwage(&-toronto.ca i i. May 2003 3 City o0 Report to 'r Executive Committee PI KERIN Report Number: CS 21-11 Date: June 13, 2011 139 From. Everett Buntsma Director, Community Services Subject: Holy Redeemer Catholic School Traffic Concerns No Stopping By-law, Liverpool Road No Parking By-law, Liverpool Road School Bus Loading Zone by-law, Liverpool Road Amendment to By-law 6604/05 Holy Redeemer Catholic School Crosswalk Relocation, Liverpool Road File: A-1440 Recommendation: 1. That Report CS 21-11 of the Director, Community Services regarding a proposed amendment to the municipal traffic by-law 6604/05 be received; 2. That the attached draft by-law be enacted to amend Schedule "1" to By-law 6604/05 to provide for the regulation of stopping on highways or parts of highways under the jurisdiction of the Corporation of the City of Pickering; 3. That the attached draft by-law be enacted to amend Schedule "2" to By-law 6604/05 to provide for the regulation of parking on highways or parts of highways under the jurisdiction of the Corporation of the City of Pickering; 4. That the attached draft by-law be enacted to amend Schedule "3" to By-law 6604/05 to provide for the regulation of a school bus loading zone on highways or parts of highways under the jurisdiction of the Corporation of the City of Pickering; and 5. That the crosswalk on Liverpool Road located at the Holy Redeemer Catholic School north driveway be relocated to the south side of Ilona Park Road (north intersection). Executive Summary: In response to concerns with roadway safety at Holy Redeemer Catholic School, Engineering Services staff at the City of Pickering was asked to investigate traffic operations, specifically with respect to pedestrian safety, bus operations and vehicular traffic flow on Liverpool. Road. Having completed the review and after discussions with staff from the Durham District Catholic School Board, City III staff recommends No Stopping restrictions on both sides of Liverpool Road and designation of a bus loading zone directly in front of the school. Also, Engineering Report CS 21-11 June 13, 2011 S eject: Holy Redeemer Catholic School Traffic Concerns Traffic and Parking By-law, Liverpool Road Crosswalk Relocation, Liverpool Road Page 2 Services staff recommends that the crosswalk be relocated further north to Ilona Park Road. Financial Implications: The acquisition and installation of no stopping and school bus loading zone signs and the relocation of the crosswalk through sign relocation; minor boulevard works, line and. painting/removal can be accommodated within the Roads current budget. Sustainability Implications: The traffic concerns as presented and the recommendations, as generated by staff, address traffic safety issues within the social objectives of corporate sustainability. Background: In October and November of 2010, concerns were received through the Customer Care Centre regarding roadway safety and traffic operations at Holy Redeemer Catholic School, 747 Liverpool Road, specifically with respect to pedestrian safety, bus operations and vehicular traffic flow on Liverpool Road. Engineering Services staff at the City of Pickering investigated these concerns and identified and verified the following issues with the school's vice principal and school bus drivers: 1. The on-site bus loading area cannot accommodate all of the school buses that access and egress the school during the peak hours. As a result, the remaining buses that cannot access the loading area are required to park in front of the school on Liverpool Road to load and unload students. A portion of Liverpool Road in front of the school is designated as a school bus loading area in the Traffic and Parking by-law, however, this area is not long enough to accommodate the existing number of buses and is not currently signed as a bus loading area. Also, motorists who pick-up and drop-off students, stop on Liverpool Road in front of the school where the buses need to park. Since school bus drivers have been asked to approach the school from the south, off of Commerce Street, they cannot see if stopped vehicles are already in front of the school until they arrive on Liverpool Road. If there are stopped cars in front of the school then, at times, buses are forced to park beside these cars and end up blocking through traffic on Liverpool Road. 2. The school crosswalk on Liverpool Road is directly in front of the school's northern parking lot driveway, and creates conflicts between vehicles accessing and egressing the school's parking lot and pedestrians crossing the street. Report CS 21-11 June 13, 2011 Subject: Holy Redeemer Catholic School Traffic Concerns 141 Traffic and Parking By-law, Liverpool Road Crosswalk Relocation, Liverpool Road Page 3 After the investigation, City staff had discussions with the Durham District Catholic School Board and the Durham District Catholic School Board Trustee with respect to countermeasures that would be effective in resolving the traffic issues around the school on Liverpool Road. In addition, although signed, No Stopping restrictions on the east side of Liverpool Road are currently not recognized in the Traffic and Parking By- law. In recognition of the issues and after discussions with staff from the Durham District Catholic School Board, Engineering Services staff recommends that the municipal Traffic By-law 6604/05 be amended to reflect the following: • Designation of No Stopping areas on the west side of Liverpool Road from Ilona Park Road (north intersection) to 156 metres south thereof • Designation of No Stopping areas on the east side of Liverpool Road from Ilona Park Road (north intersection) to 65 metres south thereof • Designation of a portion of the east side of Liverpool Road as a school bus loading area only • Relocation of the pedestrian crosswalk from its current location directly in front of the school driveway to the north intersection of Ilona Park Road Also, Engineering Services staff noticed that although there are signed parking restrictions on the west side of Liverpool Road, from Bayly Street to Wharf Street, these are not indicated in the Traffic and Parking By-law. In an ongoing effort to keep the by- law current and accurate, Engineering Services staff also recommends that the municipal Traffic By-law 6604/05 be amended to reflect the following: • No parking anytime on the west side of Liverpool from Bayly Street to Ilona Park Road (north intersection) • No parking anytime on the west side of Liverpool from 75 metres south of Ilona Park Road (south intersection) to Wharf Street The proposed traffic control scheme on Liverpool Road in front of Holy Redeemer Catholic School and the pedestrian crosswalk relocation is shown graphically in Attachment 1. Attachments 1. Traffic Control Improvements, Liverpool Road, Holy Redeemer Catholic School 2. Draft By-law Amendment - Schedule 1 No Stopping, Schedule 2 No Parking, and Schedule 3 School Bus Loading Zones Report CS 21-11 June 13, 2011 142 Subject: Holy Redeemer Catholic School Traffic Concerns Traffic and Parking By-law, Liverpool Road Crosswalk Relocation, Liverpool Road Page 4 Prepared By: Approved / Endorsed By: A X Nathan Emery"," Everett untsma, Coordinator, Traffic Operations Director, Community Services R Ric and W. Holborn, P. Eng Division Head, Engineering Services Division Attachments Copy: Chief Administrative Officer Recommended for the consideration of Pickering ity Coun .1 Z 7 Z01/ Tony revedel, P.Eng. Chief Administrative Officer C / CS d-HI T k~1 N'or' Mill 4 % wol- Monica Cook Place i +4m too Luna CQurt. o t. i9 4 _ Foxglove Avenue Park Road II na Alf JFelocate Crosswalk o a safer location i 8 Q. r=9 Holy Redeemer -Catholic School _j z Ilona Park Road o m d ► •i ~.I o Existing On-street ! I j J m y Permit Parking Only - a 7 _ i.t P, wy 0 A r l ~c~ I V~ a -r 0 0. Z c a c Legend s _ Existing No parkirg (as signed; 44,cc Existing No Stopping (as signed) =01-m Proposed No Stopping s - A erce Street f s= li C r''~ _ 71 I~ _ 1044 ~ k• ~ ; ,-i- ~ ~ t ail JA CL Community Services Department Traffic Control Improvements a Engineering Services Division SCALE: oao.~ Liverpool Road, Holy Redeemer Catholic School N.T.S. May, 2011 L ATTACHMEI\T#? T O REPORT# of 44 The Corporation of the City of Pickering By-law No. Being a By-law to amend By-law 6604/05 providing for the regulating of parking, standing and stopping on highways or parts of highways under the jurisdiction of the City of Pickering and on private and municipal property. Whereas, By-law 6604/05, as amended, provides for the regulating of traffic and parking on highways, private property and municipal property within the City of Pickering; and; Whereas, it is deemed expedient to amend By-law 6604/05 to establish "No Stopping", "No Parking" and "School Bus Loading" zones on Liverpool Road. Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. Schedule 1 " No Stopping" to By-law 6604/05, as amended, is hereby further amended thereto by the following: Schedule 1 No Stopping Column 1 Column 2 Column 3 Column 4 Highway Side Limits (From/To) Prohibited Times or Days Delete Liverpool Road West 30 metres south of the 8:30 am. to 4:30 pm north limit of the southerly Monday to Friday intersection of Ilona Park Road to 9 metres north of the north limit of the southerly intersection of Ilona Park Road Add Liverpool Road West Ilona Park Road 7:30 am. to 4:30 pm (north intersection) Monday to Friday to 156 metres south thereof ATTACHMENT#_; _ C3 REPORT# 1-/ 1 By-law No. ot-3Page 3 145 Liverpool Road East North limit of 7:30 am to 4:30 pm Ilona Park Road Monday to Friday (north intersection) to 65 metres south thereof 2. Schedule 2 "No Parking" to By-law 6604/05, as amended, is hereby further amended thereto by the following: Schedule 2 No Parking Column 1 Column 2 Column 3 Column 4 Highway Side Limits (From/To) Prohibited Times or Days Add Liverpool Road West Bayly Street to Ilona Anytime Park Road (north intersection) Liverpool Road West 75 metres south of Anytime Ilona Park Road (south intersection) to Wharf Street 3. Schedule 3 "School Bus Loading Zone" to By-law 6604/05, as amended, is hereby further amended thereto by the following: Schedule 3 School Bus Loading Zone Column 1 Column 2 Column 3 Column 4 Highway Side Limits (From/To) Prohibited Times or Days Delete Liverpool Road East 30 metres south of the 8:30 am to 4:30 pm north limit of the southerly Monday to Friday intersection of Ilona Park Road'to 9 metres north of the north limit of the southerly intersection of Ilona Park Road ATTACHMENT# 9 TO REPORT# C S By-law No. of Page 3 146 Add Liverpool Road East 5 metres north of the 7:30 am to 4:30 pm North limit of Ilona Monday to Friday Park Road (south intersection) to 90 metres south thereof I 4. These By-laws shall come into force on the date that they are approved by the Council of The City of Pickering and when signs to the effect are erected. By-law read a first, second and third time and finally passed this 20th day of June 2011. i David Ryan, Mayor Debbie Shields, City Clerk City Report to ' Executive Committee PICKERING Report Number: CS 22-11 ` 147 Date: June 13, 2011 From: Everett Buntsma Director, Community Services Subject: Tender for Roof Replacement East Shore Community Centre - Tender No. T-11-2011 - File: A-1440-001-11 Recommendation: 1. That Report CS 22-11 of the Director, Community Services regarding the Roof Replacement at the East Shore Community Centre be received; 2. That, Tender T-11-2011 submitted by Crawford Roofing Corp. at a cost of $291,540.00 (HST included) be accepted; 3. That the total gross project cost of $323,180 (HST included) and a net project cost of $291,034 (net of HST rebate) including the tender amount and other associated costs be approved; , 4. That Council authorizes the Director, Corporate Services & Treasurer to finance the projects as follows: a) the sum of $110,000, as provided for in the 2011 approved Capital Budget - Senior Centre, be funded by a transfer from the Federal Gas Tax Grant Reserve Fund; b) the sum of $181,034 from the 2010 approved Capital Budget - Recreation Arenas' Dehumidification System, be reallocated to this project and be funded by a transfer from the Federal Gas Tax Grant Reserve Fund; c) the Director, Corporate Services & Treasurer be authorized to take any actions necessary in order to give effect to the foregoing; and I Report CS 22-11 June 13, 2011 Subject: Roof Replacement - East Shore Community Centre Tender No. T-11-2011 Page 2 143 5. That the appropriate City of Pickering officials be authorized to take necessary action to give effect thereto. Executive Summary: The roof replacement at the East Shore Community Centre was approved by Council in the 2011 Capital Budget at an estimated total amount of $220,000. The existing roof structures have reached the end of their useful life cycles and currently are experiencing failure in several key areas. Replacement of the roof structures will resolve the leakage issues, resulting in the reduction of maintenance costs as well as improving the insulation factors. The roof replacement was split into segments and this is phase 3 of a 4 phase roof replacement project. Phase 1 and 2 was included in the 2010 Capital Budget and funds will be requested in 2012 for phase 4. The low tender is $70,541 more than the approved budget. This is a direct result of the increase in the price of oil based materials, transportation costs and the addition of a white roof application which increases the energy efficiency of the building. The project has been reviewed and there are no opportunities to redefine or redesign it in an effort to reduce costs. Funding for the additional costs will come from a reallocation from the 2010 Capital Budget, account 5735.1002, Recreation Complex Arenas' Dehumidification System. This project was also tendered with the results exceeding the budget provision. It will be resubmitted to Council in the 2012 Capital Budget. The funding from the Federal Gas Tax Reserve Fund in the amount of $181,034 will be reallocated to the East Shore Community Centre roof replacement. Financial Implications: 1. TENDER AMOUNT T-11-2011 $258,000 HST 13% 33,540 Sub-Total $291,540. HST - 11.24% 2( 8,999) Total $262,541 CORP0227-07/01 revised Report CS 22-11 June 13, 2011 Subject: Roof Replacement - East Shore Community Centre 1 40/ Tender No. T-11-2011 Page 3 2. APPROVED SOURCE OF FUNDS Community Services Department Capital Senior Citizens Capital Budget Location Project Code Source of Budget Required Funds Roof Replacement 5701.1101.6181 Debt- 10-Year $110,000 $0 - Senior Centre Roof Replacement 5701.1101.6181 Federal Gas Tax $ 110,000 110,000 - Senior Centre Grant Desiccant 5735.1002.6178 Federal Gas Tax $200,000* 181,034 Dehumidifier Grant - Rec Complex Arena * Balance of funds carried-over $185,000 Total Funds $291,034 3. ESTIMATED PROJECT COSTING SUMMARY T-11-2011 $258,000 Tender & Miscellaneous Costs 2,000 Construction Contingency 26,000 Total Project Costs $286,000 HST (13%) 37,180 Total Gross Project Cost 323,180 HST Rebate (11.24%) (32,146) Total Net Project Cost $291,034 Project Cost under (over) approved funds by $(71,034) CORP0227-07/01 revised Report CS 22-11 June 13, 2011 Subject: Roof Replacement - East Shore Community Centre . 150 Tender No. T-11-2011 Page 4 The 2011 Budget for the Roof Replacement-East Shore Community Centre was approved to be funded 50/50 by Federal Gas Tax Grant and City's share (debt). This funding formula was determined based on replacement of a conventional roof. The conventional roof has now been substituted with a white roof. A white roof replacement will resolve leakage issues, improve insulation, and provide increased energy efficiency resulting in this project now being 100% eligible for the Federal Gas Tax Grant funding. The City no longer requires the 50% funding from debt. Sustainability Implications: The existing roof structures have reached the end of their useful life cycle, and are currently experiencing failure in several key areas. Replacement of the four roof structures will resolve the leakage issues, resulting in the reduction of maintenance costs as well as improving the insulation factors. Background: The roof replacement was split into segments and this is phase 3 of a 4 phase roof replacement project. Phase 1 and 2 was included in the 2010 Capital Budget and funds will be requested in 2012 for phase 4. Bids have been received to the tendering call, which closed on Wednesday, May 18, 2011 for the replacement of the roof structure for the East Shore Community Centre. An advertisement was placed in the Daily Commercial News and on the City's website. A mandatory site visit was held on Tuesday, May 5, 2011 and six (6) bidders submitted bids for this project. The low bid was submitted by Crawford Roofing Corp. This company's references have been checked and are deemed acceptable by the Director, Community Services. The Health and Safety Policy, Clearance Certificate issued by Workplace Safety and Insurance Board (WSIB), the WSIB Cost and Frequency Record and Certificate of Insurance as submitted by Crawford Roofing Corp have been reviewed by the Coordinator, Health & Safety and are deemed acceptable. In conjunction with staff's review of the contractor's previous work experience and bonding available on this project, the tender is deemed acceptable. I Upon careful examination of all tenders and relevant documents received, the Facilities Operations Division recommends the acceptance of the low bid submitted by Crawford Roofing Corp for Tender No. T-11-2011 in the amount of $291,540 (HST included) and that the total net project cost of $291,034 be approved. This report has been, prepared in conjunction with the Senior Financial Analyst-Capital & Debt Management and the. Manager, Supply & Services who concur with the foregoing. CORP0227-07/01 revised Report CS 22-11 June 13, 2011 Subject: Roof Replacement - East Shore Community Centre 5 Tender No. T-11-2011 Page 5 Attachments: 1. Supply & Services Memorandum dated May 18, 2011 2. Record of Tenders opened and checked .Prepared By: Approved / Endorsed By: e Dwinnell Everett Buntsma upervisor, Facilities Operations Director, Operations & Emergency Services Caryn Kong, CGA Gillis aterson, CMA Senior Financial Analyst-Capital & Direc r, Corporate Services & Treasurer Debt Management Vera A. elgemacher C.P.P., CPPO, CPPB, C.P.M., CMM III Manager, Supply & Services EB: mld Copy: Chief Administrative Officer Recommended for the consideration of Pickering C' Coun ~p, 2Ol / Tony Prevedel, 4PEngChief Administrative Officer CORP0227-07/01 revised ATTACHMENT# ~ TO REPORT# - ~ 1.. - of C2, 152 PICKERING Memo 1811 BICENTENNIAL 2011 To: Everett Buntsma May 18, 2011 Director, Community Services From: Vera A. Felgemacher Manager, Supply & Services Copy: Supervisor, Facilities Operations Subject: Tender No.. T-11-2011 Tender for Supply and Installation of a New Roofing System on the East Shore Community Centre - File: F-5400-001 Tenders have been received for the above project. An advertisement was placed in the Daily Commercial News and on the City's website inviting companies to download the tendering documents for the above mentioned tender. Six (6) bidders submitted a tender for this project. Purchasing Procedure No. PUR 010-001, Item 10.03 (r) provides checking tendered unit prices and extensions unit prices shall govern and extensions will be corrected accordingly, which has been done. All deposits other than the low three. bidders may be returned to the applicable bidders as provided for by Purchasing Procedure No. PUR 010-001, Item 10.03(w). Three (3) bids have been retained for review at this time. Copies of the tenders are attached for your review along with the summary of costs. SUMMARY Harmonized Sales Tax Included Bidder Total Tendered Amount After Calculation Check Crawford Roofing.Corp. $291,540.00 $291,540.00 Applewood Roofing & Sheet Metal $297,190.00 $297,190.00 Trio Roofing Systems Inc. $299,450.00 $299,450.00 Rooftops and Sheet Metal Corp. $311,527.89. $311,527.89 Solar Roofing & Sheet Metal $372,561.00 $372,561.00 Ltd. Hamlet Roofing Ltd. $511,494.50 $511,494.50 ATTACHMENT# / TO REPORT#_C,<.'_c2o9'// 1 J _of _2 Pu suant to Information to Bidders Item 23, the following will be requested of the low bidder for your review during the evaluation stage of this tender call. Please advise when you wish us to proceed with this task. a) A copy of the Health and Safety Policy to be used on this project; b) A copy of the current Workplace Injury Summary Report issued by Workplace Safety & Insurance Board (in lieu of the Workplace Injury Summary Report document, a copy of the current CAD 7, NEER, or MAP reports may be. submitted); c) A copy of the current Clearance Certificate issued by Workplace Safety & Insurance Board; d) The City's certificate.of insurance or approved alternative form shall be completed by the bidder's agent, broker or insurer; e) list of Sub-Contractors in accordance with General Conditions Item 31 and page 89; Please include the following items in your Report to Council: (a) if items (a) through (d) noted above, are acceptable to the Co-ordinator, Health & Safety; (b) if item (d) - Insurance - is acceptable to the Manager, Finance & Taxation; (c) any past work experience with the low bidder including work location;. (d) without past work experience, if reference information is acceptable; (e) the appropriate account number(s) to which this work is to be charged; (f) the budget. amount(s) assigned thereto; (g) Treasurer's confirmation of funding; (h) related departmental approvals; and (i) related comments specific to the project. Please do not disclose any information to enquiries except you can direct them to the City's website for the unofficial bid results as read out at the public tender opening. Bidders will be advised of the outcome in due course. If yo require further information, please feel free to contact me or a. member of Supply & Serv ces. VAF/' Jg Attachments May 18, 2011 Tender No. T-11-2011 Page 2 Tender for Supply and Installation of a New Roofing System on the East Shore Community Centre ATTACMMENT# TO REPORT# CS as 1 Of I 154 Z w. U U _ C E E 7 -o \ O N E a O y 0 Q. a _ a a c N o a +s I~ co o ` X o f- \ Om p0 0 c O t- N1 cY cu N1 a. j cn a en cfl fA Efl 6s 69 a ~ Q v w a) ai E o c i= W C Y .4) U E W 4; m0 07 C 2 Q cu U U C E 40- z N l z Q OV Z C u O G.. b 0 O O Y Z W 3 O O p O O _ o dM z \ \ 'a I O m y U O~ Q a d U Z m p W ° 6 3 LL. O U) Qa......Y N .2 C6 v c Q O c c O a U to . O y ~ ~ Q cam U c ~ ro w ~ II C C C Q Z W..:,: U O d ~ m O ~ O (II - (D a O .C d D. C ) ) t6 L 'D U E W Z U) J 0) O O C a 06 (n _r_ U) 0 LL -C. Q) C O (n O U- C O _U) W Q i 0 ° O. (Y C co p F m o X a o v, °o 0 CL a of m ~ a° co o 000L U C/) _j 2 U H of U< eitq o~ Report To Executive Committee PICKERING Report Number: CST 23-11 55 Date: June 13, 2011 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2011 Annual Repayment Limit for Debt and Financial Obligations Recommendation: That Report CST 23-11 of the Director, Corporate Services & Treasurer regarding the 2011 Annual Repayment Limit for Debt and Financial Obligations be received for information. Executive Summary: The Annual Repayment Limit presented in this report represents, under a Provincial formula, the maximum amount which the City has available to commit to payments relating to debt and financial obligations. An update to the Annual Repayment Limit is required to determine the annual repayment limit for both internal and external borrowings. This update is required to enable the City to borrow externally. The Municipal Act provides that the Treasurer can certify the appropriateness of funding for each capital project involving debt, lease or other form of long term financial commitment. Otherwise, Ontario Municipal Board approval is required. Financial Implications: There are no financial implications associated with this report. Sustainability Implications: There are no sustainability implications associated with this report. Background: Recently, the Ministry of Municipal Affairs and Housing (MMAH) provided information regarding the City's 2011 Debt and Obligation Repayment Limit. Debt for these purposes includes all forms of loans, leases and other long term financial obligations and commitments. The 2011 Annual Repayment Limit (ARL) was calculated based on 25 percent of 2009 net own-source revenues as reported in City of Pickering's 2009 Financial Information Report (FIR) submitted to the Ministry of Municipal Affairs and Housing (MMAH). The FIR was prepared in conjunction with the annual financial statements. Own-source revenues represent generally the discretionary revenues of a municipality including property taxes, user fees, licenses and fines and exclude all Report CST 23-11 June 13, 2011 Subject: 2011 Annual Repayment Limit for Debt Page 2 and Financial Obligations 156 grants, internal transfers and extraordinary items such as the one time sale of land or other fixed assets and non-discretionary items such as development charges. The calculated 2011 ARL based on 25% of net revenue fund, after taking into account net debt charges reported to MMAH, is $14,081,357. This is based on the 2009 Financial Information Return which included $2,633,532, being the total annual principal and interest charges and all other financial obligations as recorded in the City's books. However, for City purposes staff have chosen to update this number, as we have in past years, to take into account debt incurred in 2010 and the resultant increase in annual debt charges of $1,147,962 thereby reducing the 2011 ARL to $12,933,395. This represents the maximum additional principal and interest payments that could be undertaken without requiring Ontario Municipal Board approval. It must be pointed out that this calculation does not: measure affordability; take into account other commitments the City may have; the need to change levels of service; or, raise property taxes to maintain the debt repayment amount. This limit represents the maximum amount which the municipality has available for approval and certification by the Treasurer as of December 31, 2010 to commit to payments relating to debt and financial obligations. The limit is effective January 1, 2011 for the calendar year. For illustration purposes, if the City could borrow at 5%, the rate used by MMAH in the calculation, the net ARL of $12,933,395 would allow it to undertake additional long term borrowing as follows: Term (years) Debt Amount a) 5 55,900,000 b) 10 99,800,000 c) 15 134,200,000 d) 20 161,100,000 Attachment: 1. Letter from the Ministry of Municipal Affairs and Housing dated April 20, 2011 Prepared By: Approved / Endorsed By: Caryn Kong, CGA Gillis A. Paterson, CMA Senior Financial Analyst - Capital & Director, Corporate Services & Treasurer Debt Management Report CST 23-11 June 13, 2011 Subject: 2011 Annual Repayment Limit for Debt Page 3 and Financial Obligations 157 Copy: Chief Administrative Officer Recommended for the consideration of Pickering City ouncil 27, toll Tony Prevedel, P. Eng. Chief Administrative Officer' i ATTACHMENT4I_TOREMRT#(_J- I - ' o Ministry Ministers des Municipal l Affairs Affaires municipales U1 I and Housing et du Logement Municipal Finance Policy Branch Direction des politiques relatives aux finances municipales 58 777 Bay Street, 13th Floor 777, rue Bay, 131 stage Toronto ON M5G 2E5 Toronto ON M5G 2E5 Phone: 416 585-6951 Telephone : 416 585-6951 RECEIVED Fax: 416 585-6315 Telecopieur : 416 585-6315 CITY OF PICKERING APR 2 7 2011 April 20, 2011 CORPORATE SERVM Dear Municipal Treasurer, Clerk/Treasurer: I am pleased to enclose a report showing your municipality's 2011 Annual Repayment Limit (ARL) respecting long-term debt and financial obligations. Your 2011 ARL was calculated based on 25 percent of your 2009 net own source revenues as reported in your 2009 FIR. If you require any further information, please contact the appropriate Municipal Services Office of the Ministry of Municipal Affairs and Housing (list enclosed). Yours truly, Trevor Bingler Director Enclosures r,~1 5 9 t)`~Ontario Ministry of Municipal Affairs and Housing Ministere des affaires municipales et du logement 777 rue Bay, 777 Bay Street, Toronto, Ontario M5G 2E5 Toronto (Ontario) M5G 2E5 MMAH CODE: _ 10102 FIR CLEAN FLAG: `C MUNID: 18001 MUNICIPALITY: Pickering C,,, UPPER TIER:` Durham R,-,, ;REPAYMENT LIMIT: 14,0817357 , The repayment limit has been calculated based on data contained in the 2009 Financial Information Return, as submitted to the Ministry. This limit represents the maximum amount which the municipality had available as of December 31, 2009 to commit to payments relating to debt and financial obligation. Prior to the authorization by Council of a long term debt or financial obligation, this limit must be adjusted by the Treasurer in the prescribed manner. The limit is effective January 01, 2011.. FOR,ILLUSTRATION PURPOSES ONLY, The additional long-term borrowing which a municipality could undertake over a 5-year, a 10-year, a'15-year and a 20-year period is show: - If the municipalities could borrow at 5% or 7% annually, the annual repayment limits shown above would allow it'to undertake additional long-term borrowing as follows: (a) . 20 years'@ 5% p.a. $ 175,484,833 (a) 15_years @ 5% p.a. $ 146,159,670 , (a) 10 years @ 5% p.a. $ 108,732,506 (a) . 5 years C 5% p. a. $ 60,964,907;, ' (a) 20 years @ 7% p ..a. $ 149,178,097, (a) 15 years'C~ 7% p.a. $ 128,251,789 (a) 10 years @ 7% p. 'a. $ 98,901,559` (a) 5 years @ 7% p.a., - $ 57,736,344 M.- am 71 77 771 160 +F 9 r C C Debt Charges for the Current Year + 0210 Principal (SLC 743099 01). . . : t 1,8_91,393 0220 Interest (SLC 74 3099 02). . . , . . . . . 742,139 0299 Subtotal° 2,633,532 s Ontario Clean Water Agency Provincial Projects _ 4410 Water projects -For this Municipalitykonly (SLC 74 2810 03). 0 0420 Water projects - Share of integrated project(s) (SLC 74 2820 03). . . . . ' . 0 0436 Wastewater projects - For, this Municipality only (SLC 74 2830 03). . . . 0~ . 0440 Wastewater projects - Share of integrated project(s) (SLC 74 2840 03). . . . 0 0499 0 Subtotal 0610 Payments for Long Term Commitments and Liabilities financed from the consolidated statement of operations (SLC 42 6010 01) . ( 0 0810 Debt Charges for Lease Purchase Agreements,(Tangible Capital Leases) (SLC 743140 03) Mme: 9910 y;Total, Debt Chargesa R -2 633; 532 ; Arh`punts Recovered from Unconsolidated Entities L _1010 Electricity Principal (SLC 74 3030 01) _ 1020 Electricity Interest (SLt 74.3030 02) 0 ~hY .A 1030 'Gas ".Principal (SCC 74 3040 01) . . . . . . . . . . 0 ' '1640 Gas =Interest (SLC 74 3040 02) . . . . . . . . . . . . . . . . . . . . . 1050 Telephone - Principal (SLC 74 3050 01) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 1060. Telephone - Interest (SLC 74 3050 02) . . . . . . . _ 011 1099 t z Subtotal, 0 1410 Debt Charges for Tile Drainage/ Shoreline Assistance (SLC 74 3015 01 + SLC 74 3015,02) . 0 1420 : Total Debt Charges to be Excluded o 9920 , ° Net DebtiCharges , 2,633,532 Total Revenues ( Excluding Donations of Tangible Capital Assets) 1610 73 084, 158 (SLC 1.0 9910 01 SLC,53 0610 01) : . . . . . 2010 'Fees for Tile. Drainage /Shoreline Assistance (SLC 12 1850 04) . ; 0 Grants from'Gov _ ernment of Ontario, Canada and Other Municipalities; 22,10 Ontario Grants, including Grants for Tangible Capital Assets (SLC 10 0699 01 + SLC 10 0810 01 + SLC10 0815 01) ' 1,546,045 2220 Canada Grants, including Grants for Tangible Capital Assets (SLC 10 0820 01 + SLC 10 0825 01): . . 3,5342919 2230 s Revenue from other municipalities (SLC 10 1099.01) . . ' ° 129,9.~18 2240 , Gain/Loss on sale of land Et capital assets(SLC 10 181.1 01) . . . 462758 2250 Deferred revenue earned (Development Charges) (SLC 10 1812 61) . . . . . . . 966,962 i • 2299 Subtotal 6,2 24,602 2410 Fees and Revenue for Joint Local Boards for Homes for the Aged . . . ( 0. 2610, Net Revenues E 66,859,556 2620 25% of Net Revenues ! 16,714,889i' 9930 - ESTIMATED ANNUAL REPAYMENT LIMIT 14,081,35i] (25% of Net Revenues less Net Debt Charges) " SLC denotes Schedule, Line Column. Czry Report To Executive Committee I `KERIN Report Number: CST 24-11 161 Date: June 13, 2011 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Development Charges Reserve Fund - Statement of the Treasurer for 2010 Recommendation: That Report CST 24-11 of the Director, Corporate Services & Treasurer respecting the Development Charges Reserve Fund be received for information. Executive Summary: Section 43 of the Development Charges Act, 1997 (Act) requires-that the Treasurer furnish Council with a statement in respect of each Reserve Fund established for each Development Charge under Section 33 of the Act. Accordingly, the enclosed Attachments 1 to 5 detail the activity in each component of the Development Charges Reserve Fund for the year ended December 31, 2010 in the manner as prescribed by the Act. As required under Section 43(3) of the Act, the Treasurer will be forwarding a copy of this same statement to the Minister of Municipal Affairs and Housing within 60 days upon furnishing the statement to Council. Financial Implications: In summary, development charge revenues increased by approximately 50 percent to $1,653,053 over 2009 due to an increase in building permit. activity. However, receipts still remain low compared to the early to mid 2000's. The Reserve Fund remains at a healthy balance of approximately $29.6 million pending inclusion of the projects for which the funds were collected being proposed in future capital budgets. The funds are well managed with investment returns consistently exceeding market indicators. Investment income becomes part of each fund. Sustainability Implications: The availability of funding from Development Charges Reserve Funds assists in sustaining infrastructure related to growth. l Report CST 24-11 Date: June 13, 2011 Subject: Development Charges Reserve Fund - Statement Page 2 of the Treasurer for 2010 162- Background: Funds are not transferred out of the Development Charges Reserve Fund for projects until the funds are actually needed, as required under accounting rules, which ensures that the Reserve Fund continues to earn interest income on these unspent monies until such time that the actual expenses are incurred. Attachment 1 presents the total Reserve Fund balance under "Fund Balance - Prior to Budget Commitments" of $29,593,895. Taking into account the "Budget Commitments" as at December 31, 2010 of $5,748,608, the "Fund Balance - After Budget Commitments" available for future expenditures is $23,845,287. The development charges collected in 2010 were $1,653,063, an increase of 50% from amounts collected in 2009 ($1,104,861). This significant increase is largely due to the development of a 133 unit retirement home at the corner of Glengrove and Kingston Road. The City's share of the development charges collected for the development of the retirement units was approximately $527,000. The remaining development charges collected in 2010 in the approximate amount of $1.1 million is consistent with amounts collected in 2009. This consistency is a reflection of economic times experienced in the last few years and limited land available in Pickering for development. Attachment 2 provides a chart showing the 10 year historical pattern of the development charges collected, notably the sharp decline starting from 2005 and continuing in 2010. The cumulative total collected for this 10-year period was $22,584,885. The 2010 project funding, based on the 2009 Development Charges Background Study from this Reserve Fund was $1,939,893. Attachment 3 provides detailed information on these approved projects. The capital and current expenditures actually incurred in 2010 that were funded from this Reserve Fund amounted to $494,087 (see Attachment 4). These expenditures pertained to capital and current projects approved in 1996 to 2010. Attachment 4 provides a summary by projects of these expenditures funded by development charges and other sources as prescribed by Ontario Regulation (O.Reg.) 82/98 Section 12(3). Attachment 5 provides detailed information on repayments pertaining to internal loans undertaken from 2001 to 2009 as required by O.Reg. 82/98 Section 12(2)3,4,5. As of December 31, 2010, the total outstanding internal loans are $1,123,472. No internal loan was undertaken in 2010. The principal and interest paid in 2010 was $1,201,884 and was funded from the general tax levy. I Report CST 24-11 Date: June 13, 2011 Subject: Development Charges Reserve Fund - Statement Page 3 163 of the Treasurer for 2010 Attachments: 1. 2010 Annual Statement of Development Charges Reserve Fund -2. Development Charges Collected 2000 - 2010 3. Projects Approved in 2010 to be Funded from Development Charges Reserve Fund 4. 2010 Actual Capital and Current Expenditures Summarized by Projects 5. Development Charges Reserve Fund Internal Loans - Annual Repayment for the Year Ended December 31, 2010 Prepared By: Approved / Endorsed By: Caryn Kong, CGA Gillis A. Paterson, CMA Senior Financial Analyst -Capital & Director, Corporate Services & Treasurer Debt Management Copy: Chief Administrative Officer Recommended for the consideration of Pickering City ouncil 2' Zola Tony Prevedel, P. Eng. Chief Administrative Officer i ATTACHMENT #J--TO REPORT N (D O t , M co 0) a0 n 1 p/~ ~q1 ~ O r M N N co QO (00_ N 1 V T aD M O 'IT co 00 In O aD O N M M N- OV - r 't ~ - r- C\j N v N N N" M co O co to co 06 co CD It co r- - 0 d N N V O i ~ Lo vi (d m 06 .G r. Oe J U. r m U C V N O N_ (O N 00 N CO q* aci rn i=~ d Obi O (00 0000 co CNO_ N E a = N to 4 to r O M (O oa ao ` 69 N M N 00 N Lr) rn V (O 06 00 co i LL O O M 0 O O co o I~ 0 r- O ~ N to M tD O N Lq Lq N M Oof O E_ cl) ao O N N v N P- M (00 Y L O O O O ` EA N M M CL > d 0 O to O ao O i::, O In ti) t00o M~~ N i M M Lo Lo CD - (D ~ _ E 6s N N n cri O N M co O N tN O cc) N N O N t t M N CY) y C Oi N aD C to Uj (fl O V N N Ni M N CL 4) r• (31 q: o tMO O"t O O M r- ttn N 0~ •p 04 U') y d co 00 00 O 00 c0 _O N u !6 Lo M o M O O (O M I O d M co O co p~ cl) <t Oi t C O •3 0) O O Lo N N LL N W (o 1~ co O Lo N CD C, f` M i N N v C4 04 d N 69 M M F-- C) N t. d c L c > _O N C to (D O N Lo F(o ~i r O co t~ d d W 00 (O N M (o( O O N O (fl (O U') O CL O O M cl N fl `I d I O O N t t~C 3 Vf N V M E w > co v c C D ayi E o c CL O G O O N O J d N * N M E d O N M m r C U M U d o O C O co L N C 0 O E E d R J rn E m ~ Y Q E -Fu c O d E (D m v a~i 2 v -o a`ni a`rni m 0 U- (D c: (0 0 (D C C d m 21 a) a) a) a) x x a) ' Q O Of m Q v Z L E a'~ Z w w n C cn in v) W c w o0 OD S W rJ c 'Fu CD w r_ > 2 (o a 2 a U a m' a L CL co 0 M 0 W U U IO li m fi N m 0 1 6 5 ATTACHMENT#.,TO REPORT#.ef- S/- L Ln _N bD C •L N Y U a 0 0 0 N 0 N 00 0 °o N N v V C14 N • V = o E _O N 0 O O N O O O N CD CD O O O O O O O O O O O O O O O O O O O O O O O O O Lr O LnN O L O V1 co M - N e-i a--1 ATTACH MENT# 2 TO REPORT #-afc;+ #w } 6) 6 ts Approved in 2010'toIbe Funded from pmeC 7D' es Reserve-Fund era D.C-City's Dev. Charges Share Debt-DC Source of Funding GL Account Res Fund Reserve Funded Other Total Capital Budget External Subdivision ( Roads) DH-3 Tillings Road - Valley Farm Road to north limit. Oversizing from local road to collector and urbanization. Work be completed in conjunction with servicing SP 2008-08 Lebovic and SP 2005-04 Cougs 5321.1001 $565,200 $62,800 $0 $0 $628,000 DH-7 North (East/West) Collector (West side of Brock Road) Tillings to 250m east. Oversizing from local road to collector and urbanization/forest edge treatment. Work to be completed in conjunction with SP 2008-08 Lebovic and SP 2005-04 Cougs 5321.1002 141,300 15,700 0 157,000 DH-8 North (East/West) Collector (West side of Brock Road) Brock Road to 150m west. Oversizing from local road to collector and urbanization/forest edge treatment 5321.1003 84,780 9,420 0 94,200 TC-25 Town Centre West - Street A-1. Oversizing local road to collector. Work to be completed in conjunction with adjacent site plan including additional road portion. (Council Resolution Nov. 9/09) 5321.1004 95,513 258,527 354,040 Total-Ext Subdivision (Roads) $886,793 $346,447 $0 $0 $1,233,240 External Subdivision (Traffic Signals) TC-24 Pickering Parkway - East of Liverpool Rd. Traffic signalization and intersection realignment in conjunction with expansion to Pickering Town Centre. 5321.1006 667,500 222,500 890,000 Total-Ext Subdivision (Traffic Signals) $667,500 $222,500 $0 $0 $890,000 External Subdivision (Storm Water)) W-6 (Partial) Amberlea-Creek Erosion Control EA, Design, Approvals and Construction (south of Bayly Street) - erosion control of valley wall (Two year project) 5321.1005 327,600 0 2,402,400 2,730,000 327,600 0 2,402,400 0 2,730,000 Total-Capital Budget $1,881,893 $568,947 $2,402,400 $0 $4,853,240 Operation Centre-Revised based on DC Study* Municipal Class Environmental Assessment for a New Operations Centre 5315.0904. $34,435 $65,565 a $100,000 Current Budget DC Study-Appeal 2126.2392 $10,000 $10,000 Planning-City's Official Plan Review 2611.2392. 48,000 52,000 b 100,000 Total-Current Budget $58,000 $52,000 $110,000 Grand Total-Capital & Current Budget $1,939,893 $568,947 $2,402,400 $52,000 $4,963,240 Notes a Provincial Grant-Investing in Ontario b Property Taxes Revised financing based on 2009 DC Background Study. CST14-11 Recommendation 5 I ATTACHMENT# 4 TO REPORT#...~s-n)q °-,r N 167 0 e-I 00 OD CO to LO to r O C4 M M I- I_ O O O F_ 't le N In o) M It er M co) n N M 00 O OD O r O O V N 00 a M M to Ili a? cM N N O W) M , O M to I~ M n ('f 1O co N N N O O M 00 1- 00 1- R b9 dF N N M r- t,: 06 0 0 q~i ti M (D - M M M N Ip r N Lc) Cb V, (A IA ER N LC) (A NEA (A W co U ~ ~ LO 00 cl) cl) N C 641, E0A (a 44 co w J co air (fl C \F M C d C M 44 ~ CW) D C E0A 60A M co 64 co co y r• - N N N 00 p N (p C a co co 0 0 0 0 o co N N iR fR /A EA f!A _ to to 10 r L C ~ to C IC o 0 CL m v n O 00 OD O O r Q> 44 3 0) OOf O (00 y 4) <9 E~9 fA V! q M r.+ V m N .O ~ L IL N 40 40 C) CD (D M M M O O M N N 0V H N O O 1- 0) O O (00 N N LO I- LO In to v 00 U) 00 co O N M Q) U9, co 603, EMA d V a' 60. q N N V m ~ !a ~ r E rn N N N I~ h co tr O P 00 co E d N N CO w co O N O 0) O 0 O v Il- O (0 . 0) P. n n CO CO - 01 7 co co to O 00 d, O M (m0. N m (D O to 10 (A vw uly to). 603, N r-: m ((0 N n M O N N N M O° m N t tU y V Z cm ul! to fA co d d 3 D Amp V C CL v N to (0 n M o v Lo (+i (D co C) O O 0 0 0 0 N 0 0 Cl .y. O x C to 00 00 to tT tT O M LO LO (D to to t O o 0 0 0 0 0 0 0 O O O to rn rn rn i+ V U-i o lb N N N N N N N N N N N N y N r- M M OM M M M ('M M M M M M N M C7 Q to to to to to to to to to to to to LO to w to L ' (u T Z U) j cu co 0.E od -p V w Q o o wo w o N co O '2 'O IX L to O N CD U) 0 Y O a d V J Y C. d O 'C O - ID V I- N c 0 O - O O a C~ > ~ Y! 7 Y 41 0) C fn •n N m 'a N J~ m Co 0 N O = L 0 0 0 0 LL p O O O. N rn ' 7 c to j O in V U O O~ O' O y w y O' m p N ti U _ U) w w c O 'D V "0 x ' y u O N C p t7 0 0 0 3 d L t N 0) U Y 7 W IC 2 L) It! t: E U) 0) U) 2 CU = m m o Q N 72 '2 c: in S m m o Y r o 'p V C C_ - d 7 O M M . Y W 06 'O 'O O -O '0 W (6 c6 L! H C a Q m C E -m o a v v o « Y >-0 m tca . c IX U) p R o o w c p L U C a C C 0 (0 0 o Q m N O O L ` r d~ Y ~ d 'D~ C_ N U C m U C C C~ '.Z= Y~ Q C C C O O O C R c tv 7 O~ L~ 2 2 0 72 N U 0 w a s W W n n n m m n Y N U Y U- Q Q Q f`- 168 O rv rn V I M co ao v q co M 07 ONO m Itl E9 ~t ci) c: Lf) 00 N O . a) ~ U Cf) U) C O M U) m ` O co 3 J 00 CO) ° C rn Of N w a) d co O N ~ r a • o o to ~ !fl N O R V C d'i C ~ O ~ CL v m c ~ 3 ' LL ~ fA m M d~1 V d W 0 ~ L CD CD d 6F? Iq H N N 9 cm N V tR E E da ~m 3 e 3 co r t0 co U. N 4 H V 61% 6& G~ > °f U) r_+ C d fl. m rn x r_ LU N co O _ C J N to Q N N N N L t w co 1 C U) L C V C LL U la a V 0 o Q Cf vOi c+~ N ~ C w L N U O Q d p~ fD 3 c c U- M V 3 U e V N- Z M - E U L t0 N f6 N O C N {Q 0 r LL U) °1 'O O 7 O 4) 41 N E V 3 a m C1 ° o fl c a~ Q m e :a C ( E a n C > p ` E p o O o T" ` p d C7 Z a U co I- p 3 N D U ~ N v ATTACHMENT # r TO REPORT #-af :2 169 Development Charges Reserve Fund Internal Loans - O. Reg. 82/98 Annual Repayment for the Year Ended December 31, 2010 S 12(2)3,4,5 Outstanding • Principal Outstanding Principal Repayment Principal Interest Internal Loans Jan. 1, 2010 2010 Dec. 31, 2010 2010 Undertaken in 2001 Rosebank Road 108,777 (108,777) (3,372) Eastshore Community Ctr 94,393 . (94,393) (2,926) Fire Tanker 19,216 (19,216) (596) 1999 Roads Projects 113,009 (113,009) - 2000 Roads Projects 100,676 (100,676) - (3,121) Aerial Truck 48,346 (48,346) - (1,499) Library-Western Branch 170,900 (170,900) - (5,298) 655,317 (655,317) - (16,812) Undertaken in 2002 Parks 34,926 (11,200) 23,726 (1,362) Sidewalks 27,242 (8,736) 18,506 (1,062) Storm Water Management 34,555 (11,081) 23,474 (1,348) Arena & Recreation 19,209 (6,160) 13,049 (749) Roads 242,031 (101,647) 140,384 (9,439) 357,963 (138,824) 219,139 (13,960) Undertaken in 2003 Roads 45,511 (10,686) 34,825 (1,912) Rec.Complex-Core 3,408 (800) 2,608 (143) 48,919 (11,486) 37,433 (2,055) Undertaken in 2004 Parks 96,811 (17,742) 79,069 (4,231) 96,811 (17,742) 79,069 (4,231) Undertaken in 2005 Roads 10,713 (10,713) - (332) Library 36,850 (36,850) - (1,142) Parks 13,925 (13,925) (432) 61,488 (61,488) (1,906) Undertaken in 2006 Protective Services (Fire) 12,161. (12,161) (377) Protctive Services (Bylaw) 21,148 (21,148) (656) Transportation-Roads 7,931 (7,931) - (246) Parks 32,515 (32,515) - (1,008) Recreation Facilities 30,993 (15,230) 15,763 (1,085) 104,748 (88,985) 15,763 (3,371) Undertaken in 2007 Gen Govt (Civic Complex) 29,716 (4,424) 25,292 (1,337) Protective Services (Fire) 93,620 (31,752) 61,868 (3,651) Parks 150,861 (29,055) 121,806 (7,352) Rec Facilities (Arena & Cmmty Ctr) 144,766 (39,941) 104,825 (6,672) 418,963 (105,172) 313,791 (19,012) Undertaken in 2009 Fire(Tools & Equipment for Vehicle) 500,000 (41,723) 458,277 (19,800) 500,000 (41,723) 458,277 (19,800) Total 2,244,209 (1,120,737) 1,123,472 (81,147) Source of Funding Gen. Tax Levy Annual Charges (Principal & Interest) (1,201,884) Cif Report To Executive Committee PICKERING Report Number: CST 27-11 Date: June 13, 2011 170 From: Gillis A. Paterson Director, Corporate Services & Treasurer I i Subject: 2010 Pre-Audit Balances of Reserves and Reserve Funds Recommendation: That Report CST 27-11 of the Director, Corporate Services & Treasurer be received for information. Executive Summary: Based on the preliminary 2010 results, staff are now in a position to report on the pre-audit actual activities within the Reserves and Reserve Funds for 2010. A summary is presented in Appendix A. The purpose for each reserve and reserve fund, as well as the 2010 financial transactions is set out in Appendices B and C respectively. Financial Implications: At December 31, 2010, Reserves and Reserve Funds totalled $66.7 of which $37.1 million were obligatory. This category consists of Development Charges, Parkland, Federal Gas Tax and third party contributions. A further $8.8 million is restricted as to use. The balance of $20.8 million is primarily made up of the Rate Stabilization Reserve ($16.6 million) with other smaller reserves and reserve funds. Sustainability Implications: Funds available under the reserves and reserve funds provide partial financial support towards the sustainability of Pickering in both capital and operating expenditures. Background: As in previous years, this report provides specific information on each of the City's Reserves and Reserve Funds, including year-end balances. The 2010 pre- audit Reserves and Reserve Funds balance of $66,661,779 is one of the highest balances ever reported in Pickering. However, this balance is not fully available for use due to the outstanding budget commitments of funds not yet spent, the obligations Report CST 27-11 June 13, 2011 Subject: 2010 Pre-Audit Balances of Reserves and Reserve Funds Page 2 connected with the collection of funds or other specific purposes approved by Council or under provincial legislation. With regard to unspent budget commitments for capital projects, staff are continuing the practice of not transferring funding for commitments until the expenditures are incurred. This procedure allows the reserve funds to earn interest income as long as funds are still in the reserve fund's custody and is in compliance with the Public Sector. Accounting Board (PSAB) for obligatory reserve funds. The combined unspent budget commitments for all reserve funds are $8,324,109. The Development Charges, Parkland, Third Party/Developer Contributions, Federal Gas Tax and Building, Permit Reserve Funds represent funds received for specific purposes subject to legislative requirements and based on developer agreements or agreements with any third parties. Funds available in these reserve funds are obligatory in nature and should be treated as committed. The balance in these obligatory reserve funds is $37,063,109 (See Appendix A). The combined total of the budget commitments, other restricted balances and obligatory reserve funds of approximately $45.8 million reduced the "discretionary" balance to approximately $20.7 million as at December 31, 2010. Of the aforementioned balance of $20.7 million, almost $16.5 million is in the Rate Stabilization Reserve which is anticipated to be used over the current term of Council as the City progresses towards a sustainable level of budgets. The balance of $4 million is primarily reserved for capital works and capital replacements related to vehicles, equipment, telephone, and community facilities. The purposes of the reserves and reserve funds are discussed further in Appendices B and C. Internal borrowings from the reserve funds commenced in 2001 to assist in funding capital projects. The outstanding principal balance as at December 31, 2010 is approximately $1.1 million undertaken from the Development Charges Reserve Funds. This provided the reserve funds with an attractive rate of interest compared to current market investment rates while at the same time providing a cheaper cost of borrowing for the municipality. Interest earned on internal loans represents amounts earned on the 2001 to 2009 internal borrowings. There was no internal loan in 2010. Attachments: 1. Appendix A Summary of Reserves and Reserve Funds 2. Appendix B Description of Reserves 3. Appendix C Description of Reserve Funds Report CST 27-11 June 13, 2011 Subject: 2010 Pre-Audit Balances of Reserves and Reserve Funds Page 3 172 Prepared By: Approved / Endorsed By: Caryn Kong, CGA Gillis A. Paterson, Senior Financial Analyst-Capital & Director., Corporate Services & Treasurer Debt Management Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council WaI4 -30, 2-011 Tony Prevedel, P.Eng. Chief Administrative Officer 7 3 ATTACHMENT #_.4,_T0 REPORT #.;-1S a-7 -11 APPENDIX A CITY OF PICKERING SUMMARY OF RESERVES AND RESERVE FUNDS PRE-AUDIT ACTUALS DECEMBER 31, 2010 Pre Audit Audited Audited Audited Appendix B Summary Reserves 2010 2009 2008 2007 4610 Working Funds $400,000 $400,000 $400,000 $400,000 4611/4623 Replacement Capital 1,090,999 854,338 618,419 683,214 4612 Contingencies-OPG, Election, Other2 1,277,278 1,471,140 1,401,340 1,328,080 4613 Self-Insurance 2 962,707 962,707 . 951,391 951,391 4619 Rate Stabilization 16,579,632 16,565,777 17,374,935 15,491,176 , 4620 Develop. Charges-City's Share 2 3,695,928 1,946,216 1,168,494 745,244 4621 Region Transit 2 - - - 120,999 4622 Continuing Studies 2 406,984 390,315 750,534 713,821 4624 Vehicle Replacement 149,158 237,547 172,547 122,547 4625 Easement Settlement - 131,279 131,279 - 4626 Library Eastern Branch z 130,000 105,000 80,000 55,000 4627 Move Ontario 14,533 267,033 8,243 308,243 4628 Capital Maint Mgmt System 165,000 90,000 75,000 - 4629 Economic Stabilization 830,000 1,235,000 - - Total Reserves $25,702,219 $24,656,352 $23,132,182 $20,919,715 ' I Pre Audit Audited Audited Audited Appendix 'C Summary of Reserve Funds 2010 2009 2008 2007 4225 Community Facilities $145,483 $215,350 $192,845 $180,880 4228 Capital Works 369,943 361,338 348,583 335,486 4229 Development Charges '82 29,593,895 27,714,332 26,413,355 23,528,009 4230 Parkland 182 1,757,582 1,914,793 1,984,486 1,557,607 4232 Public Works 1,049,595 .1,224,292 1,167,782 1,122,707 4234 Workers Safety Insurance Brd 2 2,021,105 1,658,462 1,339,907 1,103,109 4235 Third Party/Dev. Contributions' 2,185,222 2,210,924 2,043,667 2,129,221 4237 Doubles Squash Courts 2 116 1,315 92,530 119,057 4238 Prov. Dedicated Gas Tax' - - - 523,014 4239 Federal Gas Tax Revenue' 3,526,410 3,032,702 3,084,862 2,144,076 4240 Building Permit Stabilization Fees 182 - - - 4241 Animal Shelter2 173,850 162,553 152,896 146,195 4242 Pickering Mens' Slow Pitch 2 136,359 137,587 128,470 - 4243 Operations Centre - - - - Total Reserve Funds $40,959,560 $38,633,648 $36,949,383 $32,889,361 Total Reserves & Reserve Funds $66,661,779 $63,290,000 $60,081,565 $53,809,076 Notes (Includes 4229 & ' Obligatory Reserve Funds $37,063,109 4230) (Excludes 4229 2 Restricted Reserves & Reserve Funds 8,804,327 & 4230) Total Obligatory' & Restricted 2 -2010 = 45,867,436 Less Budget Committed Projects (8,324,109) Total Uncommitted Obligatory & Restricted R & RF $37,543,327- Total Reserves & Reserve Funds $66,661,778 Less Obligatory, Restricted Reserve & Reserve Funds (45,867,436) Net-Discretionary Reserves & Reserve Funds $20,794,342 I ATTACHMENT #..'2-TO REPORT # LUJ,7 - /I Appendix B 174 Reserve for Working Funds 4610 Actual Balance December 31, 2009 $ 400,000 Transfers into the Reserve - Transfers out of the Reserve - Pre-Audit Actual Balance December 31, 2010 $ 400,000 1. Purpose of this Reserve: The reserve for working funds is used to provide operating cash to assist in avoiding short .term interest expenses incurred on operations, typically during the first few months of the year prior to tax billing and at other times when cash inflows and outflows do not match as occurs in any corporation. The interest income on this account forms part of the annual Current Budget General Government Revenue. 2. Recommended Maintenance Levels of this Reserve: It is recommended as a "rule-of-thumb" that this reserve be 2% to 3% of total City revenues. Based on average annual revenue of $45 million, at 2%, the amount to maintain for this reserve should be $900,000. Appendix B Reserve for Replacement of Capital Equipment - G/L 4611/4623 Actual Balance December 31, 2009 $ 854,338 Transfers into the Reserve Revenue Fund Contribution 115,462 Sale of Land 95,589 Return to Source 157,006 Transers out of the Reserve Transfers to Capital Fund (131,396) Pre-Audit Actual Balance December 31, 2010 $ 1,090,999 1. Purpose of this Reserve: The purpose of this reserve is to reduce the need to levy for the full cost of major equipment in the year of acquisition. This reserve acts as a stabilization factor and helps to avoid both tax rate fluctuations and the issuance of long-term debt or other means of financing. The interest income on this account forms part of the annual Current Budget General Government Revenue. 2. Recommended Maintenance Levels of this Reserve: This reserve should be kept at a level that is equivalent to the replacement cost of the assets for which they were established. Over the last couple of years, the reserve balance has been kept at a minimum level. Contributions to this reserve are provided for annually in the Current Budget. In 2003, additional sub-categories were set up for accounting purposes to better match the collection of funds to the application of these funds to particular facilities as shown on the following page. •I 176 Appendix B The balances pertaining to these sub-categories are as follows: Corp Use Prgrms Pool Arena Core Pool Arena Total Dec 31 /09 253,050 171,752 47,502 10,091 101,110 153,678 117,155 854,338 Transfers in 0 18,500 4,962 30,000 27,000 15,000 20,000 115,462 Sale of Land 95,589 95,589 Returned to source 13,800 143,206 - 157,006 Transfers out - - (14,819) - - (14,839) (101,738) (131,396) Dec 31/10 362,439 190,252 37,645 183,297 128,110 153,839 35,417 11-090,999 i I 177 Appendix B Reserve for Contingencies - G/L 4612 (OPG, Other Assessment Appeals, Election, Miscellaneous) Actual Balance December 31, 2009 $ 1,471,140 Transfers into the Reserve Transfers from Revenue Fund 70,000 Transfers out of the Reserve: (263,862) Pre-Audit Actual Balance December 31, 2010 $ 1,277,278 1. Purpose of this Reserve: Like the Capital Equipment Replacement Reserve, this reserve acts in a tax stabilization capacity. It was established in anticipation of unknown, unusual or extraordinary expenditures, which occur from time to time. The interest income on this account forms part of the annual Current Budget General Government Revenue. I 2. Recommended Maintenance Levels of this Reserve: In 2003, the large balances in this reserve were reviewed and grouped into sub- . categories in the general ledger, for accounting purposes only, to better distinguish those amounts that are committed and those amounts available for general corporate use. The sub-categories are as follows: OPG Assessment Appeal, Elections, Other Assessment Appeals and Miscellaneous. As at the year ended December 31, 2009, there are no longer any funds in the Contingency-Ontario Power Generation (OPG) Assessment Reserve as the assessment appeals related to the taxation years 2003-2006 have been reached and this amount was transferred to the Rate Stabilization Reserve in 2007. The amounts pertaining to the other sub-categories are as follows: Election - $16,138 Other Assessment Appeals - $682,594, True Sport City Share- $3,060 and Miscellaneous - $575,486. 178 Appendix B Reserve for Self Insurance - G/L 4613 Actual Balance December 31, 2009 $ 962,707 Transfers into the Reserve - Transfers out of the Reserve: Transfer to Capital - - Pre-Audit Actual Balance December 31, 2010 $ 962,707 1. Purpose of this Reserve: This reserve was established as a necessary form of asset protection. Specifically, it is to cover insurance claims resulting from the increase in j deductible levels, costs of uninsured claims and other claim related costs. The higher deductible reduced insurance premiums. Significant savings can be realized through reduced premium costs and staff analyzes the costs/benefits of such actions on an annual basis. The interest income on this account forms part of the annual Current Budget General Government Revenue. 2. Recommended Maintenance Levels of this Reserve: This reserve should be maintained at a level to ensure that the funding is adequate to meet future liabilities. This situation is analyzed by staff on a regular basis. 179 Appendix B Reserve for Rate Stabilization - G/L 4619 ~I Actual Balance December 31, 2009 $ 16,565,777 Transfers into the Reserve 2010 Excess Surplus Contribution 785,811 Dividend from Veridian 2,140,382 2,926,193 19,491,970 Transfers out of the Reserve 2010 Current Budget Provision (2,9121338) Pre-Audit Actual Balance December 31, 2010 $ 16,579,632 1. Purpose of this Reserve: The purpose of this reserve is to act as a tax rate stabilization factor for annual current budget funding. The interest income on this account forms part of the annual Current Budget General Government Revenue. 2. Recommended Maintenance Levels of this Reserve: The fund balance should be maintained at a level of 3 to 5 per cent of tax revenues to provide tax rate stabilization for annual current budgeting purposes. The 2010 Current Budget provided for a transfer in the amount of $2,912,338 from this reserve to fund current expenditures. With the settlement of OPG assessment appeal in 2007, dividends from Veridian and surplus in 2010; there is sufficient built-up of funds to draw from this reserve for future budgeting years. In 2010, there is a budgeted draw of $2.8 million and further draws anticipated in 2011 and after. I I 130 Appendix B Reserve for Development Charges - City Share G/L 4620 Actual Balance December 31, 2009 $ 1,946,216 Transfers into the Reserve 2010 Excess Surplus Contribution 1,833,559 2010 Budgeted Transfer 480,000 Returned to source 5,100 4,264,875 Transfers out of the Reserve Transfer to Capital Fund -External Subdivision Works (568,947) Pre-Audit Actual Balance December 31, 2010 $ 3,695,928 1. Purpose of this Reserve: This reserve has been established to set aside funds for projected growth in the City. From the 1999 and the 2004 Development Charges Studies it was approved that a reserve be established for the City's share (i.e. the non- development charge portion) of the costs of services included in the Development Charges Study and that contributions be included in the annual Current Budget for consideration by Council. For the City to meet its obligations for the various capital projects, an annual contribution of $2.4 million is required. The interest incomes on this account forms part of the annual Current Budget General Government Revenue. 2. Recommended Maintenance Levels of this Reserve: Funds continue to be budgeted in the Current Budget to build-up this reserve to fund future capital growth of the City. The draws in the current year were to finance External Subdivision Works. This reserve should be maintained at a level to ensure that the funding is adequate to meet future capital growth in the City. 181 Appendix B Reserve for Continuing Studies and Consulting - G/L 4622 Actual Balance December 31, 2009 $ 390,315 Transfers into the Reserve Continuing Consulting Work or Studies 263,858 Transfers out of the Reserve (247,189) Pre-Audit Actual Balance December 31, 2010 $ 406,984 1. Purpose of this Reserve: This reserve was established to capture any unspent annual Current Budget provisions related to consulting, continuing studies, professional and legal fees. Under Generally Accepted Accounting Principles, the approval to, expend funds for these efforts ceases at year-end, however work may continue beyond that date. The establishment of this fund enables the transfer of unspent funds into future year and accommodates this frequent timing difference between the approval and the expenditure. The interest income on this account forms part of the annual Current Budget General Government Revenue. 2. Recommended Maintenance Levels of this Reserve: There is no recommended maintenance level. Funds transferred to this reserve will be used to fund the balance of the expenditures still to be incurred for incomplete studies or consulting contracts. I Expenditures incurred in 2010 in the amount of $247,189 pertained to consulting work that was transferred into the reserve in the prior year. An additional amount of $263,858 has been transferred-in for ongoing consulting work. i Appendix B, 1 8 2 Reserve for Vehicle Replacement - G/L 4624 Actual Balance December 31, 2009 $ 237,547 Transfers into the Reserve - Returned to source - Transfers out of the Reserve to Capital Fund (88,389) Pre-Audit Actual Balance December 31, 2010 $ 149,158 1. Purpose of this Reserve: This reserve was newly established in 2004 to begin building up funds to finance the cost of replacing the City's aging fleet. The interest income on this account forms part of the annual Current Budget General Government Revenue. 2. Recommended Maintenance Levels of this Reserve: There is no recommended maintenance level. Funds transferred to this reserve will be committed to fund the purchase of new vehicles. .183 Appendix B Reserve - Easement Settlement - G/L 4625 Actual Balance December 31, 2009 $ 131,279 Transfers into the Reserve: - Projects returned to source - Transfers out of the Reserve: Gablehurst Crescent-Resurfacing (45,000) Liverpool Rd/Annland -Overheard Hydro Conversic (86,279) (131,279) Pre-Audit Actual Balance December 31, 2010 $ - 1. Purpose of this Reserve: This reserve was established in 2005 with funds received from easement settlement in February 2005. The amount collected was $2.5 million. These funds were used to finance both the capital and operating expenditures of the City. The interest income on these funds forms part of the annual Current Budget General Government Revenue. 2. Recommended Maintenance Levels of this Reserve: There is no recommended maintenance level. The fund balance has been completely depleted as at the year ended December 31, 2010. 184 Appendix B Reserve - Provision for Easter Branch Library - G/L 4626 Actual Balance December 31, 2009 $ 105,000 Transfers into the Reserve 25,000 Transfers out of the Reserve - Pre-Audit Actual Balance December 31, 2010 $ 130,000 1. Purpose of this Reserve: This reserve was established in 2005 to begin building up funds for a new library at the eastern part of Pickering. This provision may be used to fund the new facility, capital cost, resource materials and any other related costs. The interest income on this account forms part of the annual Current Budget General Government Revenue. 2. Recommended Maintenance Levels of this Reserve: There is no recommended maintenance level. In 2002, the Library requested $10,000 under the Capital Budget for the "Provision for Eastern Branch". A similar request was made in both 2005 and 2006. It is the intention of the Library to annually request for this provision to continue building up funds for the proposed new facility. In 2007, the annual provision has been increased to $25,000. The same amount was provided annually from 2008 to 2010. I I 185 Appendix B Reserve - Move Ontario - G/L 4627 Actual Balance December 31, 2009 267,033 Returned to source-completed projects - Transfers out of the Reserve Capital Expenditures -Roads (252,500) Pre-Audit Actual Balance December 31, 2010 $ 14,533 1. Purpose of this Reserve: This reserve was established in 2006 to capture the one-time funding received on March 20, 2006 from the Ontario government, the Ministry of Transportation. The Ontario government is providing a one-time investment to help municipalities primarily outside the GTA, with specific emphasis on rural and northern. municipalities and to invest in municipal roads and bridges. Municipalities will determine their own roads and bridges priorities. The interest income on this account forms part of the annual Current Budget General Government Revenue. 2. Recommended Maintenance Levels of this Reserve: There is no recommended maintenance level. i i 186 Appendix B Reserve - Capital Maintenance Management System - G/L 4628 Actual Balance December 31, 2009 $ 90,000 Contribution from Revenue Fund 75,000 Transfers out of the Reserve Capital Expenditures - Pre-Audit Actual Balance December 31, 2010 $ 165,000 1. Purpose of this Reserve: This reserve was newly established in 2008 to start building-up funds for capital maintenance and management systems. Amount build-up will provide funds to assist in meeting mandatory Public Sector Accounting (PSAB) requirements and future capital asset management initiatives. The interest income on this account forms part of the annual Current Budget General Government Revenue. 2. Recommended Maintenance Levels of this Reserve: There is no recommended maintenance level. In the last two years, funds were transferred-in from the Current Budgets to provide for replacement cost for the telephone system in 2011. 187 Appendix B Reserve - Economic Stabilization - G/L 4629 Actual Balance December 31, 2009 $ 1,235,000 Dividend from Veridian - Transfers to Revenue Fund (405,000) Pre-Audit Actual Balance December 31, 2010 $ 830,000 1. Purpose of this Reserve: This reserve was established in 2009 in order to place a special dividend approved by Veridian. Report to Council CS15-09 provides background information on the establishment of this reserve. The special dividend will be used to assist the City's budget process during the next few years. For both 2009 and 2010 budgeting years, $405,000 has been drawn per year from this reserve to minimize proposed tax increase. The interest income on this account forms part of the annual Current Budget General Government Revenue. II 2. Recommended Maintenance Levels of this Reserve. There is no recommended maintenance level. ATTACHMENT #_TO REPORT #.0SZ,.2 1/ Appendix C 188 Reserve Fund for Community Facilities - G/L 4225 Actual Balance December 31, 2009 $ 215,350 Transfers into the Reserve Fund Interest Earned on External Investments 4,742 Reserve Fund Management Fee (216) 4,526 Transfers out of the Reserve Fund Transfer to Capital Fund (74,393) (74,393) Pre-Audit Actual Balance December 31, 2010 $ 145,483 I ` 1. Purpose of this Reserve Fund: This is a "discretionary" reserve fund established by Council to attempt to avoid both tax rate fluctuations and the need for issuing long term debt for major expenditures required for community facilities. The interest income on this reserve fund forms part of the reserve fund as per the Municipal Act, 2001 section 417(3). 2. Recommended Maintenance Levels of this Reserve Fund: The balances in this fund have fluctuated from the high in 1998 of $773,483 to the low in 2001 of $69,102. Other than interest income earned, there has been no transfer to this reserve fund in the last ten years. Expenditures are transferred out of reserve funds only when incurred. The pre- . audit balance of $145,483 after taking into account the unspent budget commitments of $29,107will provide an uncommitted balance available of $116,376 as at December 31, 2010. Additional amounts must be provided to this fund. 1 89 Appendix C Reserve Fund for Capital Works - G/L 4228 Actual Balance December 31, 2009 $ 361,338 Transfers into the Reserve Fund: Interest Earned on External Investments . 8,967 Reserve Fund Management Fee (362) Transfers out of the Reserve Fund - Pre-Audit Actual Balance December 31, 2010 $ 369,943 1. Purpose of this Reserve Fund: This Fund is a "discretionary" one and was established pursuant to section 417(1) (2) of the Municipal Act, 2001 for specified purposes by Council related to the acquisition of assets. The interest income on this reserve fund forms part of the reserve fund as per the Municipal Act, 2001 section 417(3). 2. Recommended Maintenance Levels of this Reserve Fund: Between the years of 1998 to 2000, the balances have been maintained at $600,000 to $800,000. The average balance from 2001 to 2003 has declined to $515,000. Starting from 2004 on to the current year, the funds balance for this reserve funds has further declined to an average of $350,000 per year. This is largely due to no major contribution to this reserve fund in the past ten years. There is no unspent budget commitment for this reserve fund. Major additional contributions will be required in future years. 9 Appendix C 10 Reserve Fund for Development Charges - GIL 4229 Actual Balance December 31, 2009* $ 27,718,727 Transfers into the Reserve Fund: Net Developer Contributions $ 1,653,063 Interest Earned on External Investments 661,342 Interest Earned on Internal Loans 81,147 Reserve Fund Management Fee (26,297) 2,369,255 Transfers out of the Reserve Fund: Transfer to Current Fund-Studies (122,644) Transfer to Capital Fund: Operations Centre-Environmental Assessment (822) Parks (2,567) Ext. Subdiv- Roads & Related (368,054) (371,443) Pre-Audit Actual Balance December 31, 2010 $ 29,593,895 ' Included adjustment for interest income allocation 1. Purpose of this Reserve Fund: This is an "obligatory" reserve fund and as such is governed by Municipal Act 2001, Development Charges Act, 1997, Ontario Regulation 82198, City By-law or agreement and requires revenue received for the special purposes to be segregated from the general revenues of the municipality. Obligatory reserve funds must be created whenever a statute requires revenue received for a special purpose to be segregated from the general revenues of the municipality and the revenue is to be used solely for the purpose prescribed by statute, i.e. in this case the monies charged to developers must be held and used to fund capital services and related. background studies required for new growth. The interest incomes on these funds form part of the reserve fund as per the Municipal Act, 2001 section 417(3). 2. Recommended Maintenance Levels of this Reserve Fund: In accordance with development charge legislation, all development charge revenues must be held within separate Reserve Funds and can only be used for the financing of growth-related projects. As such, no reserve fund limits are appropriate for the Development Charge Reserve Funds because they are tied to growth-related capital requirements. This reserve fund has an unspent budget commitment of $5,748,608. The pre- audit actual balance of $29,593,895 would be reduced by this amount to reflect an uncommitted balance of funds available for future expenditures of $23,845,287. 191 Appendix C Reserve Fund for Parkland - G/L 4230 Actual Balance December 31, 2009 $ 1,914,793 Transfers into the Reserve Fund: Developers Contributions $ 266,138 Interest Earned on External Investments 47,669 Interest Earned on Internal Loans 3,121 Reserve Fund Management Fee (1,974) 314,954 Transfers out of the Reserve Fund: Transfer to Capital Fund-Parks: Duffin Trails (17,968) Tennis Court-Bramalea Fencing (15,293) Mowers & Groomer (92,167) Shadybrook Park-Play Area (132,726) Brockridge Park-Play Area (10,071) Beachfront Park-Sunshade (13,600) Kinsmen Fieldhouse Rehabilitation (123,677) Playgrounds Resurfacing and Replacement (36,357) Parks- Trees (30,306) (472,165) Pre-Audit Actual Balance December 31, 2010 $ 1,757,582 1. Purpose of this Reserve Fund: This is an "obligatory" reserve fund and it was established pursuant to section 417(1)(2) of the Municipal Act, 2001 as required by subsections 42(1), (5), (6), (7), (8) and (9) of the Planning Act. This fund is governed by legislation, regulation or agreement and requires revenues received for the special purposes to be segregated from the general revenues of the municipality. Obligatory reserve funds must be created whenever a statute requires revenues for a special purpose to be segregated from the general revenues of the municipality and the revenue is to be used solely for the purpose prescribed by statute. The interest incomes on these funds form part of the reserve fund as per the Municipal Act, 2001 section 417(3). 2. Recommended Maintenance Levels of this Reserve Fund: Due to the obligatory nature of this fund, there are no limits on this fund. The unspent budget commitments for the year ended 2010 are $264,825. The pre- audit balance of $1,757,582 after taking into account the unspent budget commitments will provide an uncommitted balance available of $1,492,757 as at December 31, 2010. 192 Appendix C Reserve Fund for Public Works - GIL 4232 Actual Balance December 31, 2009 $ 1,224,292 Transfers into the Reserve Fund Third Party Contributions $ 1,430 Interest Earned on External Investments 29,876 Reserve Fund Management Fee (1,227) 30,079 Transfers out of the Reserve Fund: Glenanna Road Resurfacing (204,776) (204,776) Pre-Audit Actual Balance December 31, 2010 $ 1,049,595 1. Purpose of this Reserve Fund: This fund was established by Council pursuant to section 417(1) (2) of the Municipal Act, 2001. The purpose of the reserve fund is to acquire fixed assets, to fund capital works related to public property, without the need to fund on a long-term nature through the issue of debentures. The main purpose at this time is to fund the City's share of the cost of subdivision works committed to under various subdivision agreements. The interest incomes on these funds form part of the reserve fund as per the Municipal Act, 2001 section 417(3). 2. Recommended Maintenance Levels of this Reserve Fund: The "average" annual balance of this fund over the last four years has been approximately $1 million. This reserve fund should be kept at least at this level in the future. Staff will periodically review the need for this level with the requirements contained in the capital budget and four year program and report any different findings to Council. The pre-audit balance of $1,049,595 after taking into account the unspent budget commitment of $13,885 will provide an uncommitted balance available of $1,035,710 as at December 31, 2010. r I i 1 9 3 Appendix C Reserve Fund for Workers Safety Insurance Board - GIL 4234 Actual Balance December 31, 2009 $ 1,658,462 Transfers into the Reserve Fund Contribution from Current Fund $ 505,000 Interest Earned on External Investments $ 48,122 Reserve Fund Management Fee (1,868) 551,254 Transfers out of the Reserve Fund Claims and Other Related Costs $ (63,664) Funding Insurance Costs (97,751) Contribution to Health & Safety Training (27,196) (188,611) Pre-Audit Actual Balance December 31, 2010 $ 2,021,105 1. Purpose of this Reserve Fund: This reserve fund has been established to provide for the annual costs of insurance coverage, contributions towards the health and safety program, and the payment of claims and other related costs now that the City is a Schedule 2 employer. This reserve fund was created in 2001 further to the recommendation passed in Council Resolution#127/01 and in compliance with Workplace Safety & Insurance Act. The interest incomes on these funds form part of the reserve fund as per the Municipal Act, 2001 section 417(3). 2. Recommended Maintenance Levels of this Reserve Fund: Starting from 2004 and continuing to 2010, the contributions were more than double the claims experienced for the year, resulting to a built-up in the balance of the reserve fund to assist in offsetting future claims. As Schedule 2 operates on the self-insured principle, any anticipated savings between contributions and claims experience will be transferred to this reserve fund to build-up the fund balance in the event of any catastrophic claim-related costs, which may occur. The average annual built-up of approximately $252,000 from 2003 to 2010 has resulted to the 2010 year-end balance of $2,021,105. I 194 Appendix C Third Party/Developers Contributions Reserve Fund - G/L 4235 Actual Balance December 31, 2009 $ 2,210,924 Transfers into the Reserve Fund Contributions from Developers/Third Parties $ 54,280 Interest Earned on External Investments $ 54,557 Reserve Fund Management Fee (2,226) 106,611 Transfers out of the Reserve Fund - Capital Expenditures: Ext Subdivision Works-Regional Altona Road (44,556) Ext Subdivision Works-Sideline 4 (7,091) Brockridge Park Batting Cage (80,666) (132,313) Pre-Audit Actual Balance December 31, 2010 $ 2,185,222 1 1. Purpose of this Reserve Fund: This reserve fund was established by Council pursuant to Section 417(1) of the Municipal Act, 2001. The purpose of this reserve fund is to capture contributions from developers or third parties per development agreements and any cost sharing arrangements for future capital projects. Due to the externally restricted contributions, this reserve fund is treated as obligatory. The collections are committed for specific purposes and not available for general use. Unless specified, the City is under no obligation to pay interest to any developers or third parties. The interest incomes on these funds form part of the reserve fund as per the Municipal Act, 2001 section 417(3). 2. Recommended Maintenance Levels of this Reserve Fund No reserve fund limits are appropriate for this fund as the collection and commitment of funds are dependent upon development agreements or cost sharing arrangements. 195 Appendix C Squash Funds Reserve Fund - G/L 4237 Actual Balance December 31, 2009 $ 1,315 Transfers into the Reserve Fund Surcharge on Memberships 9,098 Contribution from Pickering Squash Club - Interest on External Investments (806) Reserve Fund Management Fee (4) 8,288 Transfers out of the Reserve Fund - Recreation Centre Expansion & Squash Courts (9,487) Pre-Audit Actual Balance December 31, 2010 $ 116 - i 1. Purpose of this Reserve Fund: This reserve fund was established to capture funds from Pickering Squash Club memberships' surcharges, corporate sponsorships, third party contribution and any such funds as the Council may approve. This reserve fund shall be used for the purpose of paying expenses related to the provision of double squash courts. This reserve fund was newly created in 2003 further to the recommendation passed in Council Resolution #79/03, Item 5 per Report to Council CS 40-03. The interest incomes on these funds form part of the reserve fund as per the Municipal Act, 2001 section 417(3). 2. Recommended Maintenance Levels of this Reserve Fund: No reserve fund limits are appropriate for this fund. There was a commitment of $200,000 from this reserve fund towards the construction of the double squash courts at the Pickering Recreation Complex. The construction of the double squash courts was completed in September 2009. The majority of the funds received as at the year ended 2010 have been used to fund part of this project. The total amount funded was $189,350. The portion remains unfinanced from this reserve fund is $10;650 and will be funded pending future revenues from surcharge on memberships. 196 Appendix C Federal Gas Tax Reserve Fund - GIL 4239 Actual Balance December 31, 2009 $ 3,032,702 Transfers into the Reserve Fund Federal Contribution (through AMO) 2,694,431 Interest on External Investments 91,471 Reserve Fund Management Fee (4,377) 2,781,525 Transfers out of the Reserve Fund - Current Expenditures Audit Fees (5,500) Roads-Wheatsheaf & Shadybrrok (29,477) Capital Expenditures in the following cost centres/projects: Roads-Whitevale Bridge (80,370) Roads-Toy Avenue (62,580) Roads-Hampton Court (62,783) Roads-6th Concession Rd Resurfacing (160,062) Roads-Westney Rd Limestone Resurfacing (33,296) Roads-Glenanna Rd Resurfacing (716,778) Sidewalks-Bayly St & Liverpool Rd (25,813) MPE & Parks: 2 Hybrid Vehicles (77,346) Fire Div-Fire Hall # 2 Roof Replacement (52,900) Civic Complex-Axial Fan Motors, Air Volume Box (68,672) Senior Centre-Roof Rehabilittaion (146,800) Don Beer Arena Rehabilitation (321,996) Community Centre-WSCC Window Repalcement (25,709) Rec. Complex:Energy Audit & System, Air Handling Unit, Boilers, Blinds (132,356) Rec Complex Arena: Dehumidification System & 0' Brien Rink Overhead Door (16,520) Parks: Western Gateway & Kinsmen Fieldhouse Rehabilitation (40,671) Library-Roof Replacment Central & Front Door (228,188) (2,287,817) Pre-Audit Actual Balance December 31, 2010 $ 3,526,410 197 1. Purpose of this Reserve Fund: This reserve fund was established in 2005 to capture the transfer of gas tax revenues from the Government of Canada through the Association of Municipalities of Ontario under the New Deal for Cities and Communities (Canada-Ontario-AMO-Toronto Agreement). The Council had approved under Report to Council CS 92-05, the establishment of this reserve fund under By-law 6609/05 and Resolution 219/05. This program is not application based and does not require matching funding. Municipalities are allowed to invest in environmental sustainable infrastructure in programs such as public transit, storm water system, local roads and bridges. It comes with the expectation that the investments will see Ontarians enjoying cleaner air, cleaner water and reduced greenhouse gas emissions. The original 2005 Canada-Ontario-AMO-Toronto Agreement was amended on September 3, 2008 in order to extend the municipalities Gas Tax Fund allocations to 2014. Report to Council CS 06-10 provides detailed background information on the Amending Agreement and By-Law 7030/10 authorized the execution of an Amending Municipal Funding Agreement for the Transfer of Federal Gas Tax Revenues. The interest incomes on these funds form part of the reserve fund as per the Municipal Act, 2001 section 417(1). 2. Recommended Maintenance Levels of this Reserve Fund: No reserve fund limits are appropriate for this fund. The following table represents the schedule of payments under the 2005 Municipal Funding Agreement: Year Jul November 2005 $ 849,577.58 2006 $424,788.79 424,788.79 2007 566,321.81 566,321.82 2008 707,854.83 707,854.84 2009 1,415,709.67 1,415,709.67 Total $7,078,927.80 198 The following table represents the schedule of payments over the life of the Amending Agreement: Year Jul November 2010 $1,347,215.33 $1,347,215.33 2011 $1,347,215.33 $1,347,215.33 2012 $1,347,215.33 $1,347,215.33 2013 $1,347,215.33 $1,347,215.33 Total $10,777,722.64 The pre-audit balance of $3,526,410, after taking into account the unspent budget commitments of $2,267,684, will provide an uncommitted balance available of $1,258,726 as at December 31, 2010. 199 Appendix C Annual Report - Building Permit Fees for the year ended December 31, 2010 Building Permit Revenue $ 1,074,592 Costs Direct Costs (1,162;411) Indirect Costs (232,105) (1,394,516) Excess/(Deficit) Revenue over Costs $ (319,924) Building Permit Stabilization Reserve Fund - GL 4240 Opening Balance, Jan. 1, 2010 $ - 2010 Contribution Closing Balance, Dec. 31, 2010 $ - 1. Purpose of this Reserve Fund: This reserve fund was officially established in 2006 based on By-Law 6651/06 and Report to Executive Committee PD 41-05. The need for the establishment of this reserve fund arises as a result of the significant changes to the building regulatory system in Ontario with the introduction of the Building Code Statute Law Amendment Act, 2002 (known as Bill 124) and associated amendments to the Ontario Building Code. The purpose of this fund is to secure funding to provide for service delivery stabilization during an economic downturn. The source of funds will be the annual portion of building code permit fees after related direct and indirect costs are netted. The interest incomes on these funds form part of the reserve fund as per the Municipal Act, 2001 section 417(3). l 200 2. Recommended Maintenance Levels of this Reserve Fund: Given the rationale for creating a fee stabilization reserve fund, the targeted reserve fund balance should reflect the reduction in permits witnessed during the last recession when compared to the long-run development average - acknowledging the City's. responsibility to manage a portion of the costs associated with an economic downturn. Based on the modeled activity based direct costs conducted by CN Watson; the appropriate balance to maintain is proposed at $1.16 million, expected to be achievable within a target of seven accumulated years. As at the year ended 2010, this reserve fund remains at a zero balance. This is due to expenses exceeding building permit fee revenues; therefore, there was no transfer to the Building Permit Stabilization Reserve Fund. The Building Code Act, section 7(4) requires an annual reporting of this reserve fund, on which Report to Executive Committee CST 21-11 provided detailed information on the 2010 reporting year. 201 Appendix C Animal Shelter Reserve Fund - G/L 4241 Actual Balance December 31, 2009 $ 162,553 Transfers into the Reserve Fund Donations 7,069 Interest on External Investments 4,396 Reserve Fund Management Fee (168) 11,297 Transfers out of the Reserve Fund 0 - Pre-Audit Actual Balance December 31, 2010 $ 173,850 1. Purpose of this Reserve Fund: This reserve fund was established in 2007 based on By-law 6749/07, Report to Council CS 16-07, Recommendation 9. This reserve fund was established to record the City's share of the proceeds resulting from the dissolution and disposition of the assets of Pickering, Ajax, Whitby Animal Services (PAW).. With the establishment of this reserve fund, financial resources received and provided can be used to construct a permanent animal shelter. The interest incomes on these funds form part of the reserve fund as per the Municipal Act, 2001 section 417(3). 2. Recommended Maintenance Levels of this Reserve Fund: No reserve fund limits are appropriate for this fund. The main contribution to this reserve fund was the proceeds of $144,433 from PAW in 2007. The balance of funds is from donations and interest income earned. 202 Appendix C Operations Centre Reserve Fund - G/L 4243 Actual Balance December 31, 2009 $ - Transfers into the Reserve Fund Interest on External Investments - Transfers out of the Reserve Fund Pre-Audit Actual Balance December 31, 2010 $ - Purpose of this Reserve Fund: This reserve fund was established to deposit net proceeds from the sale of land in the area known as Duffin Heights and other funds as may be j approved by Council. The net proceeds will be used to finance costs associated with the establishment of the new Operations Centre. These include costs for disposal and acquisition of land, legal fees, surveys, soil testing, engineering design, construction costs, debt charges and, if available any equipment and furniture required for the facility. This reserve fund was established in 2009 under Report to Council CS 15- 09 Recommendation 9 a) and as approved by By-Law No. 6954/09. The interest incomes on these funds form part of the reserve fund as per the Municipal Act, 2001 section 417(3). 2. Recommended Maintenance Levels of this Reserve Fund: No reserve fund limits are appropriate for this fund. Since its inception in 2009, there has been no transactions, this reserve fund balance remains at zero. City Report To Executive Meeting PICKERING Report Number: CST 28-11 203 Date: June 13, 2011 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Development Charges - Annual Indexing Recommendation: 1. That Report CST 28-11 of the Director, Corporate Services & Treasurer be received; 2. That effective July 1, 2011 as provided for in Section 16 of By-law 6978/09, the Development Charges referred to in Sections 6 and 11 of that By-law be increased by 1 percent; and, 3. That the appropriate officials of the City of Pickering be given authority to give effect thereto. Executive Summary: The Development Charges Act 1997 and Ontario Regulation 82198 and By-law 6978/09 provided for an annual adjustment to keep development charges revenues current with construction costs, normally an increase based on the Non-residential Building Construction Price Index. The annual Non-residential Building Construction Price Index (NRB CPI) for the current indexing year is 3.4%. In the previous indexing year (2010/2011), the NRB CPI was a reduction of 2.4%. The Council waived the annual indexing in 2010/2011 and the reduction was not reflected in the adopted 2010/2011 rates. To maintain the integrity of the annual CPI indexing, it is proposed that the 2011/2012 rates be adopted at a net increase of 1 Adoption of the recommendations of this report will put into effect the higher rates for the period July 1, 2011 to June 30, 2012. Financial Implications: Increasing the development charges based on an increase in the construction price index (CPI) will assist in keeping the revenues generated in line with current costs. The residential development charges for single and semi detached units will increase by approximately $97, other residential charges will increase similarly and the commercial/industrial charge will increase by approximately $0.04 per square. foot or $0.41 per square metre based on a net increase of 1 Report CST 28-11 Date: June 13, 2011 Subject: Development Charges- Annual Indexing Page 2 04 Sustainability Implications: This annual increase is necessary to ensure that the costs of financing growth related construction projects are sustainable. Background: As provided for in the Ontario Reg. 82198 and in the City's By-law 6978/09, each year the development charges charged by the City for all types of development may be indexed without amending the By-law. Adoption of the recommendations contained in this report will allow that increase to take effect July 1, 2011 thereby assisting in keeping revenues in line with the costs that development charges go towards. Statistics Canada indicates the increase in the construction price statistics for the most recently available annual period ending March 31, 2011 of 3.4 percent for Non- residential Building Construction Price Index (an indicator of our costs of construction) for the Toronto area. The net change (an increase of 1 after taking into consideration a reduction of 2.4% from previous year is reflected in the table attached. At this juncture, the Regional Municipality of Durham (Region) has not finalized the annual indexing of the development charges the City collects on their behalf. The City will continue to use rates prescribed as effective from July 1, 2010 until further notice from the Region. The Education Development Charges will remain unchanged for the current year. Upon Council's approval of the recommendations contained in this report, the development charges brochure will be updated to reflect the approved rates. The updated brochure will be posted on the City's website and made available at various counters throughout the Civic Complex. Attachments: 1. Current and Proposed Development Charges 2011/2012 Prepared By: Approved / Endorsed By: 1c-c5 Caryn Kong, CGA Gillis A. Paterson, CMA Senior Financial Analyst- Director, Corporate Services & Treasurer Capital & Debt Management GAP:ckk Report CST 28-11 Date: June 13, 2011 Subject: Development Charges- Annual Indexing Page 3 2es Copy: Chief Administrative Officer Chief Building Official Recommended for the consideration of Pickering City Council 27, 20 l! Tony Prevedel, P.Eng. Chief Administrative Officer ATTACHMENT#=TO REPORT# City of Pickering 206 Current Residential Development Charges Effective July 1, 2010 Per Dwelling Unit Service Single & Apt. Two Other Category Semi Apt. One Bdrm Dwelling Detached Bdrm & Larger Units & Smaller $ Growth Studies $87 $35 $47 $62 Fire Protection 259 103 140 186 Transportation- Roads & Related 4,516 1,793 2,445 3,241 Operations 278 110 150 200 Stormwater Management 1,365 542 739 980 Parks & Recreation- Parkland Dev & Trails 424 168 229 304 Recreation Facilities 2,249 893 1,217 1,614 Libra 516 205 279 370 TOTAL $9,694 $3,849 $5,246 $6,957 Current Non-Residential Development Charges Effective July 1, 2010 Service Per Sq. Foot Per Sq. Metre Category Transportation-Roads & $2.97 $31.97 Related Stormwater Management 0.90 9.68 Total $3.87 $41.65 207 Proposed Residential Development Charges Effective July 1, 2011 Per Dwelling Unit Service Single & Apt. Two Other Category Semi Apt. One Bdrm Dwelling Detached Bdrm & Larger Units & Smaller $ Growth Studies $88 35 47 63 Fire Protection 262 104 141 188 Transportation- Roads & Related 4,561 1,811 2,469 3,273 Operations 281 111 152 202 Stormwater Management 1,379 547 746 990 Parks & Recreation- Parkland Dev & Trails 428 170 231 307 Recreation Facilities 2,271 902 . 1,229 1,630 Libra 521 207 282 374 TOTAL $9,791 $3,887 $5,297 $7,027 Proposed Non-Residential Development Charges Effective July 1, 2011 Service Per Sq. Foot Per Sq. Metre Category Transportation-Roads & $3.00 $32.29 Related Stormwater Management 0.91 9.77 Total $3.91 $42.06 cif o~ 2 0 3 Report To Executive Committee I ~KERING Report Number: CST 29-11 Date: June 13, 2011 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2011/2012 Property and Liability Insurance Renewal Recommendation: 1. That Report CST 29-11 of the Director, Corporate Services & Treasurer be received; 2. That the City of Pickering renew its property, liability and other insurance policies through the. Frank Cowan Company for the period July 1, 2011 to June 30, 2012 inclusive on terms and conditions acceptable to the Director, Corporate Services & Treasurer; 3. That the Director, Corporate Services & Treasurer, as part of the Risk Management Program, be authorized to continue the Reimbursable Deductible Program through the Insurance Adjuster and the Frank Cowan Company and further, that the Director be authorized to settle any claims including any adjusting and legal fees where it is in the City's interest to do so; 4. That the Director, Corporate Services & Treasurer be authorized to purchase additional insurance, make changes to deductibles and existing coverages, and alter terms and conditions as becomes desirable or necessary in order to limit potential liability exposure and to protect the assets of the City and it's elected officials and staff; and, 5. That the appropriate officials be authorized to take the necessary actions to give effect thereto. Executive Summary: The City's insurance program continues to operate successfully and the above Recommendations provide for a renewal of the policies basically on the same or improved terms and conditions as in past years, which also provides coverage for the Library, its Board and its employees. G ~R~port CST 29-11 June 13, 2011 Subject: 2011/2012 Property and Liability Insurance Renewal Page 2 Financial Implications: The 2011/12 premium renewal cost reflects the savings from the deductible changes (outlined below). The increase in the liability deductible should provide in the long run; premium stability as long as the City has a favourable claims experience. The insurance premium has been provided for in the approved 2011 budget and the renewal premium cost is slightly below the 2011 budgeted amount. Sustainability Implications: Insurance renewal provides the City with financial security and is therefore better able to maintain financial sustainability. y insurance Background: Each year on July 1, the City's general liability and propert policies come up for renewal. As approved by Council at the time of the 1998 renewal; the Treasurer undertook an extensive review of all aspects of the City's insurance program. The City of Pickering embarked on a Risk Management Program, the initial phase of which involved negotiating renewing premiums with the City's broker. The result of the negotiations was a decrease of approximately $75,000 or 20 percent, in the premiums from that of the prior year. The savings were transferred to the Self Insurance Reserve. In our opinion, this program has served the city well, and today there is almost $1 million in this reserve. Recommendation 4 provides the Treasurer with the authority to continue to review and adjust insurance coverages where appropriate during the year to reflect business requirements and current market and business environment conditions. Every year, staff review the proposed insurance policy terms and conditions to ensure that the City is adequately protected. The City's municipal liability limit is $25.0 million which is at an adequate level based on the City's current population and liability exposure. For comparison purposes, the City of Windsor with a population of approximately 200,000 has liability coverage of $50.0 million and Toronto with a population of 2.5 million has a liability limit of $100.0 million. The City's liability policy provides coverage for bodily injury, property damage, personal injury and. is based on a deductible of $100,000. Bodily injury claims include and are not limited to: sickness, disease, shock, mental anguish assault and battery sustained during the policy period by any person. The deductible limit is being increased from $50,000 to $100,000 to reflect the appropriate risk retention level for a municipality that is Pickering's size. In addition, the increase in the deductible has resulted in a favourable premium renewal price of $673,317. An added benefit of the increased deductible is that it will assist in stabilizing future premiums. This year's premium renewal has translated into-a positive budget variance of $6,500. Future favourable premium renewals will be contingent upon the City's claim history or claims experience. To ensure positive future premium renewals, additional resources will be included in future sidewalk maintenance budgets where the City receives several claims a year. Report CST 29-11 June 13, 201 1 0 Subject: 2011/2012 Property and Liability.lnsurance Renewal Page 3 Insurance Market and Trends Traditionally, the market for municipal insurance providers has been a limited one. Municipal operations pose a unique challenge to insurers arising out of the wide array of exposures which fall within the scope of coverage under one policy. The availability of markets willing to insure municipalities has been further complicated by legislative changes and by broader court decisions. The Frank Cowan Company is one of Canada's largest providers of insurance and risk management solutions for public entities. This company has been in business for over 80 years and is a financially strong company and is associated with the Guarantee Company of North America. The current liability and property insurance market remains steady for most standard lines of insurance business with municipal insurance experiencing an above average increase. The Court awarded damages are getting larger, especially for bodily injury claims. These awards are primarily driven by the costs of providing future care for injured persons. Municipal property liability premiums continue to increase as a result of the legal provision of the joint and several liability application leveraged with large court awards and with the municipality as being seen as having "deep pockets". The joint and several provisions of the Negligence Act, indicate, "Where damages have been caused or contributed to by the fault or neglect of two or more persons and, where two or more persons are found at fault or negligent, they are jointly and severally liable to the person suffering the loss or damage Also known as the 1 % rule, these provisions may oblige a defendant, which is only 1 % at fault, to pay the plaintiff's entire judgment particularly in cases where the other defendants are financially unable to do so. In other words, the defendant who is 99% at fault does not have the financial strength or assets to pay the claim. Therefore, the municipality, who is viewed as having "deep pockets", pays the remainder of the claim. In April 2010, the Association of Municipalities (AMO) issued a paper on Joint and Several Liability Reform, highlighting how municipalities are targets for litigation to counter-balance the potential that other defendants may have insufficient means to pay high damage awards. This paper was presented to the Attorney General's Office and AMO is looking forward to working with the Ministry on this issue., Individual claims are becoming more complex, resulting in more time to manage the claim, more detailed investigation and more experts and legal costs involved in defending the claim. Even if the City is not liable, there are always costs in defending the claim. Basic risk management states that you should diversify your risk. Many insurance companies have customers throughout the Province or Canada to diversify the risk associated with a local catastrophic event. With the City of Pickering being a direct customer of the Frank Cowan Company (who has customers throughout the Province and beyond), the geographical risk diversification is achieved and maintained. Report CST 29-11 June 13, 2011 211 Subject: 2011/2012 Property and Liability Insurance Renewal Page 4 Service to our Residents Regrettably, insurance claims or incidents do occur. A key strategic advantage of the City's insurance and risk management program is that.every claim is processed with a customer service attitude. After a claim or incident is received, City staff quickly contact (within 24 hours) the claimant, to advise them that the City has received the claim and to assure them that the claim is being investigated by the City's Insurance Adjuster. The City's Insurance Adjuster has many years of local municipal insurance experience, which the City uses as an asset to investigate and settle claims. The City's Insurance Adjuster is familiar with the City and its municipal infrastructure and this experience has assisted in reducing claims cost due to his knowledge and/or his familiarity with the City, its policies and procedures. The Insurance Adjuster's service standard is to make contact with the claimant within two business days. Sometimes, the claimants may not completely agree with the outcome and City staff may review the claim and/or intervene to work towards a solution. The strategic advantage of the "local service delivery model" is that claims are handled quickly, professionally and with a customer service perspective. In addition, the current "local" service delivery model allows City staff "hands on" participation in the claims process to better serve claimants who, in the majority of situations, are City residents. Attachments: 1. Program Summary of Insurance Coverage Prepared By: Approved / Endorsed By: Stan Karwowski Gillis A. Paterson, CMA Manager, Finance & Taxation Director, Corporate Services & Treasurer Recommended for the consideration of Pickering City Council 30, 2.o/ Tony Prevedel, P.Eng. Chief Administrative Officer ATTACHMENT #-L-TO REPORT # L J-q -1 212, Cowan Frank Cowan Company 2011 MUNICIPAL INSURANCE PROGRAM C-aq 0~ CORPORATION OF THE CITY OF PICKERING Prepared by: Mr. Viano Ciaglia, C.I.P., C.R.M. Regional Manager Frank Cowan Company Limited 75 Main Street North Princeton, ON NOJ 1 VO This is a summary., Nothing herein alters the terms, conditions and viano.ciaglia@frankeowan.com exclusions contained in the printed insurance contract(s). 1-800-265-4000 REF: 60275/cg May 24, 2011 T/519-458-4331 F/519-458-4366 IL 213 i About Frank Cowan Company Leader in Public Entity Insurance Frank Cowan Company has grown to become one of Canada's leading providers of Insurance and Risk Management solutions for public entities. For over 80 years Frank Cowan Company has been a pioneer in the development and implementation of innovative insurance programs for the Municipal, Health Care, Education and Social Services sectors. Frank Cowan Company is affiliated with Cowan Insurance Group, The Guarantee Company of North America and Millennium CreditRisk Management through common ownership under Princeton Holdings Limited. Cowan Insurance Group provides insurance and risk management products and services to businesses, organizations, and individuals. Cowan Insurance Group is one of the largest privately owned business and personal insurance brokerage operations in Canada, and provides retirement and group benefits assistance to employers, as well as financial advice on life insurance, disability management, critical illness and long term care. The Guarantee Company of North America specializes in commercial and contract surety, fidelity, directors' and officers' liability and personal lines insurance including it's high value Guarantee Gold coverage. Millennium CreditRisk Management specializes in trade credit and political risk insurance. Outstanding Service We are more than just an insurance provider. We are a trusted partner in providing insurance and risk management services. We work with our clients and their affiliated associations to develop individualized risk management and claims management programs, advise on procedural or regulatory change as well as an array of other services. Our mandate is clear ...help our clients reduce risk. Clients also benefit from our affiliations with lawyers, adjusters and others that specialize in the public sector. The combination of our service network and internal expertise allow us to continually develop innovative, cost-effective solutions and services tailored to the risks of individual clients. Financial Stability Frank Cowan Company, as an Underwriting Agent, represents a select group of financially strong Canadian based insurers that have made a long-term commitment to public sector risk. Our business model creates a very stable market for your insurance requirements, and gives our customers the comfort of knowing that they will always be protected by long-term, high-quality continuous service. Frank Cowan Company -2- 21 4 Cowan Service Solutions More Than Just Insurance Cowan offers a full range of services to assist in the management and reduction of risk, which is equally vital to our clients. Risk Management, Claims Management and our other value-added services were initiated by Cowan and have evolved throughout our history. Most often we can provide the services listed below at no additional cost to the client. Liability Hazard Assessment t~ Our Municipal clients are involved in a wide range of diverse activities to serve the public. These lead to various potential public liability situations. We work with our j clients to provide specific hazard identification and analysis of these exposures. f Building Valuations tb. We conduct periodic detailed inspections of property and buildings with formal reports, replacement cost valuations for insurance purposes, photographic inventory with recommendations to correct potential hazards. Seminars & Staff Training d1b. We deliver a wide range of presentations to our Municipal clients on an ongoing basis that provide continuous education for our clients. Risk Audits We help our clients audit systems and processes to reduce potential losses within their operations and specifically focus on documentation, reporting and consistency with accepted standards and practices. Contractual Review t~ Our experience contributes insight on the suitability and effectiveness of liability transfers and appropriate insurance and indemnity clauses within your various contracts. Publications, Bulletins & tb. Because constant two-way communication is important, Information Packages our website is available on a 24 hour basis for access to information on our Services, Publications and programs. Anyone in your organization can visit us at www.frankcowan.com to keep informed of common issues and solutions. Claims Management t~ We handle your claim fairly and efficiently. Claims that are made against you are handled with the consistent strategy of defending or discouraging those claims that are without merit, or reaching a reasonable settlement on claims that do merit payment. Detailed claims progress reports are produced and can be organized by type of loss or department to suit your needs. Frank Cowan Company -3- 21 5 MARKETPLACE CONDITIONS The Canadian Property & ,Casualty Insurance marketplace continues to witness consolidation yet remains one of the most saturated insurance markets in the world, with over 200 players. However, amongst the majority of the insurers operating in Canada, specialization continues to be the trend. Only a limited number of insurers are willing to risk their capital on high liability exposure classes such as Municipal, Healthcare, Education and Social Services sectors. While the last few years have brought some stability for the general Property'& Casualty market, specialty classes continue to present unique Underwriting and Claims Management challenges. The Public Entity sector continues to experience significant losses. Some of these losses have been driven by landmark cases, but overall, frequency and severity of claims have increased dramatically. As well, the overall cost of claims, which takes into account escalating court awards, claims administration expenses and the ever-increasing replacement costs of assets, has continued to rise. Insurers and Reinsurers. are extremely cautious about public entity liability exposures due in part to the complexity of services provided by public sector organizations. A number of insurers have either imposed coverage restrictions or withdrawn from the public entity market entirely. Frank Cowan Company, a specialist in public entity insurance, continues to receive the support and capacity of our insurers. We continue to provide long-term stability for the insurance and risk management needs of our public entity clientele. Our policies and services continue to evolve in response to the exposures faced by our clients. We are confident that our product, service and pricing will reflect our continued commitment to this sector. Frank Cowan Company -4- 21 6 COMPREHENSIVE INSURANCE PROGRAM 2011-2012. Frank Cowan Company -5- 21 7 CHANGES TO YOUR INSURANCE PROGRAM Please be advised of the following changes to your insurance program that now apply: ■ AUTOMOBILE POLICY Automobile insurance has changed effective September 1, 2010. Refer to attached - Providing More Choices to Consumers and Summary of Important Changes to Your Policy. Please note that the Replacement Cost option is only available for vehicles up to 20 years or newer. Therefore, Vehicle #110 - 1984 Marten Havelock Trailer and #113 - 1982 J&J Trailer will now revert to the Standard Basic, Actual Cash Value of Loss Settlement as of renewal date. ■ GARAGE AUTOMOBILE POLICY Automobile insurance has changed effective September 1, 2010. Refer to attached - Providing More Choices to Consumers and Summary of Important Changes to Your Policy. ■ PROPERTY POLICY Property values have been increased in order to reflect inflationary trends. The Rent or Rental Value form has been enhanced to include premises which are rented on an hourly or daily basis. Builders Risk for Renovation Project at Don Beer Arena has been deleted at renewal. ■ EQUIPMENT BREAKDOWN INSURANCE Builders Risk for Renovation Project at Don Beer Arena has been deleted at renewal. Frank Cowan Company -6- 21.8 PROGRAM SUMMARY SUMMARY OF COVERAGES LIMITS/AMOUNTS PART Ax'CASUALTY Municipal Liability Limit of Protection per occurrence 25,000,000. (No Annual Aggregate Limit) Third Party Claims Deductible including expenses $ 100,000. Sewer Backup per Claimant Deductible including expenses $ 100,000. Wrongful Dismissal (legal expense) Limit per claim $ 250,000. 250 000. Annual Aggregate Limit $ Deductible $ 5,000. Voluntary Compensation Included Municipal Marina Liability Included Malpractice Liability Included Errors and Omissions (Claims Made Form) Limit of Protection per claim $ 25,000,000. (No Annual Aggregate Limit) Deductible including expenses $ 100,000. Non-Owned Automobile Limit of Protection per occurrence $ 25,000,000. (No Annual Aggregate Limit) Legal Liability for Non-Owned Vehicles (S.E.F. No. 94) Third Party Liability Deductible $ 10,000. All Perils Physical Damage Limit $ 500,000. Deductible $ 500. Environmental Liability (Claims Made Form) Liability of Protection per claim $ 1,000,000. Annual Aggregate Limit $ 2,000,000. Self-Insured Retention $ 100,000. Frank Cowan Company -7 21 9 PROGRAM SUMMARY SUMMARY OF COVERAGES LIMITS/AMOUNTS Comprehensive Crime Commercial Blanket Bond $ 2,000,000. Money Orders and Counterfeit Paper Currency Included Depositors' Forgery Included Audit Expense $ 100,000. Money and Securities - Blanket any Location $ 100,000. Excess on Securities $ 100,000. Computer Fraud or Funds Transfer Fraud $ 200,000. Councillors' Accident One City Mayor/Regional Councillor, Three Regional Councillors (Durham)/ City Councillor and Three City Councillors and Nine Library Board Members Accidental Death & Dismemberment $ 100,000. (No Annual Aggregate Limit and No Deductible) Weekly Income - Total Disability $ 500. Weekly Income - Partial Disability $ 250. Twenty-Four Hour a Day Coverage applies. Municipal Conflict of Interest Percentage of Legal Fees and Expenses 100% Maximum Limit of Reimbursement per claim $ 100,000. C (No Annual Aggregate Limit) Legal Expense Percentage of Legal Fees and Expenses 100% Maximum Limit of Reimbursement per claim $ 100,000. Annual Aggregate Limit $ 250,000. w Frank Cowan Company -8- 220 PROGRAM SUMMARY SUMMARY OF COVERAGES LIMITS/AMOUNTS PART BZiPROPERTY Property Insurance (including Data Processing Insurance) Total Sum Insured * $ 178,125,700. Valuable Papers $ 500,000. Accounts Receivable (other than Data Processing) $ 500,000. Extra Expense (other than Data Processing) $ 1,000,000. I Business Interruption Rent or Rental Value Form $ 500,000. Gross Revenue Form $ 2,584,500. Checkroom Liability $ 5,000. Data Processing System and Equipment $ 1,440,800. Media $ 47,000. Extra Expense $ 50,000. Fine Arts Form $ 2,000. Exhibition Form As Per Lists Provided Deductible $ 10,000. Exceptions: - Checkroom Liability $ 2,500. - Fire Training Trailer $ 2,500. - Peril of Flood $ 25,000. - Peril of Earthquake 3% or Minimum $ 100,000. - Fine Arts Form and Exhibition Form $ 2,500. *Note: Please refer to the insurance contract for an itemized list of assets containing specific limits of insurance or that are excluded from the policy. Frank Cowan Company -9- 221 PROGRAM SUMMARY SUMMARY OF COVERAGES LIMITS/AMOUNTS Equipment Breakdown Limit per Accident - Comprehensive: - Steam Engine At Greenwood Museum, 2365 6w Concession, Greenwood, ON $ 10,000. - All Other Locations $ 50,000,000. Extra Expense $ 500,000. Spoilage - Goods under Refrigeration $ 50,000. Business Interruption - Loss of Profits (Gross Revenue) - All Buildings & Facilities, Greenwood Museum, Pickering, Ontario $ 94,500. - Don Beer Arena, 940 Dillingham Road, Pickering, Ontario $ 600,000. - Dunbarton Indoor Pool, 655 Sheppard Ave. E., Pickering, Ontario $ 100,000. - Pickering Recreation Complex, 1867 Valley Farm Road, Pickering, Ontario $ 1,790,000. Expediting Expenses Included By-Law Cover Included Errors and Omissions $ 100,000. Hazardous Substance (including PCB Contamination) $ 500,000. Ammonia Contamination $ 500,000. Water Damage $ 500,000. Professional Fees $ 500,000. Data Restoration $ 25,000. Denial of Access 2 Weeks Deductible $ 10,000. Frank Cowan Company -10- I~ 222 PROGRAM SUMMARY SUMMARY OF COVERAGES LIMITS/AMOUNTS PARTa C='AUTOMOBILE Automobile Fleet Liability Limit $ 25,000,000. Deductibles No Physical Damage applies to 1951 Antique Pumper (Parades) Section 3 (Third Party Liability) $ 10,000. Section 6 (Direct Compensation - Property Damage) $ 10,000. All Perils $ 10,000. Garage Automobile Third Party Liability Limit $ 3,000,000. Customer Vehicles Collision Limit $ 200,000. Deductible $ 500. Specified Perils Limit $ 300,000. Deductible $ 500. NOTE: Value Added Risk Management Services are included in the total premium. Frank Cowan Company -11- City oo Report to Executive Committee PICKERING Report Number: CAO 11-11 2 3 Date: June 13, 2011 From: Debbie Shields City Clerk Subject: Bingo Licensing - Charitable Bingo and Gaming Revitalization Initiative Recommendation: 1. That the City of Pickering enter into a contract with the Ontario Lottery and Gaming Corporation (OLGC) for electronic bingo and gaming in order to work with the OLGC, the Charity Organizations and Delta Bingo in a "Bingo Revitalization Program"; and 2. That the Mayor and Clerk be authorized to take the necessary action to give effect thereto. Executive Summary: The City of Pickering has been approached by the Ontario Lottery and Gaming Corporation and bingo industry partners to enter into a contract with the OLGC in order to initiate a program being developed to revitalize charitable bingo in the Province of Ontario. This is a multi-year program that will have significant impact in sustaining and growing charitable revenue to support the local funding model. The whole initiative is built on incremental and gradual transition of the gaming experience and a key element of this is new or refreshed products. Through the transformation, the focus- is on the key business driver - the customers, with the key beneficiaries being the charities. The program will preserve and enhance charitable bingo revenue for local charities by providing a lineup of new electronic and paper games in bingo halls across Ontario. The initiative is intended to offer players an interactive environment, more choice of electronic and paper-based games and enhanced customer service. Bingo halls will transform to charitable gaming centres over a period of time in an effort to attract new players and provide an exciting entertainment experience. Financial Implications: Currently, the City of Pickering issues bingo licences to various charities to conduct bingo events. The City receives $60.00 per event in licence fees. Annual licensing revenue for the City is approximately $105,000.00. Under the new revitalization initiative, the City could possibly see revenue increases if revitalization efforts succeed. Report CAO 11-11 June 13, 2011 Subject: Bingo Licensing Charitable Bingo and Gamin Revitalization Initiative Page 2 L4 Sustainability Implications: No sustainability implications. Background: As previously noted in past reports to Council, the bingo industry has felt a consistent decline in bingo halls and the attendance of bingo players. Statistics show an annual decline of approximately 8% to 10% annually is being seen in the Bingo Industry. Over the past 5 years, the Ontario Lottery and Gaming Corporation, the bingo industry, charities/non-profit organizations and municipalities have been reviewing the bingo industry and restructuring the game of bingo in order to mitigate the decline in attendance and bingo dollars. At this time, all bingo events are managed and conducted by charities and non-profit organizations. and money raised is used to support their various programs and services in the community. There is a limited amount of money available from consumers of entertainment products and services, and competition for those dollars is strong. The OLGC and the Bingo Industry believe that in order for bingo to remain viable, changes are necessary that will pave the way for new players. Over the last five years, the new program has had pilot sites operating across Ontario, including; Barrie, Kingston, Peterborough, Sudbury and Windsor. These pilot sites have had positive feedback from all of the partners involved. The program has been created as a way to protect the revenues generated through bingo lottery events and also to create a modernized electronic option to attract younger bingo players but also keeping the traditional paper game. This new initiative is built on the lessons learned from these pilots and new product consistent with charitable gaming will be added on an ongoing basis. The way the program works is a collaborative effort by the OLGC, the municipality, the charity associations and the bingo halls. The OLGC retains Conduct and Management responsibilities through contracts with commercial. operators, charities and municipalities. The Commercial Operators manage all day to day operations which include facility operations, games finances, advertising and promotion. With Commercial Operators managing the day to day operations, there will be a need to hire people in order to do the jobs that the charities previously did. Charities relinquish conduct and management but, gain opportunities to promote their organization and support customer service. The Charities will have a meaningful support role in the Gaming Centre in return for direct funding (status quo), but will not have to put so much time and volunteer hours into each event. The municipalities maintain their existing role and revenue and focus on managing eligibility and use of proceeds. Under the new model, permits will be issued instead of licences by the municipality and the permit fees will be processed through OLGC and paid to the municipality on a quarterly basis instead of the fees coming from the CORP0227-07/01 revised giro Report CAO 11-11 June 13, 2011 Subject: Bingo Licensing 225 Charitable Bingo and Gamin Revitalization Initiative Page 3 charities. Revenue from bingo events will not decrease under the new program unless, the game of bingo continues to decline. If the new revitalization program is a success, the City should see an increase in bingo revenue and a decrease in administrative processing time. Under the new bingo revitalization program, the bingo industry stakeholders hope to provide a new entertainment experience for customers to attract lapsed and new players. This in turn will improve bingo revenues for charities and non profit organizations and stop the decline of the bingo industry. The next steps in order to start bingo revitalization in the City of Pickering and to facilitate this regulatory change, final standard contracts will need to be signed by OLGC, the respective commercial operators, charity associations and the Municipality. Attachments: 1. Ontario Lottery and Gaming Corporation Public Awareness Article 2. Letter from Mayfair Bingo Association 3. Letter from Delta Bingo Hall Prepared/Approved/Endorsed By: Debbie Shields City Clerk Copy: Chief Administrative Officer Recommended for the consideration of Pickerin City Cou ciI '3/, 20/ Tony Prevedel, P.Eng. Chief Administrative Officer CORP0227-07/01 revised II f 226 REVITALIZATION OF CHARITABLE BINGO AND GAMING INDUSTRY March 16, 2011 Public Awareness Campaign Launched to Support Benefits to Local Charities TORONTO - OLG is embarking on a public awareness campaign to inform Ontarians about plans to revitalize the Bingo industry for the benefit of charities across Ontario. Across the province, electronic and paper-based games will be introduced to provide a new entertainment experience at local bingo centres. OLG is joining forces with the Ontario Charitable Gaming Association (OCGA) and the Commercial Gaming Association Ontario (CGAO) to provide a new breed of charitable games to complement existing paper bingo games. The collaboration with the OCGA and the CGAO will result in increased support for local charities. "We are proud to be helping charities in their efforts to stabilize and grow their fundraising," said John Wisternoff, Vice President for Charitable Gaming and iGaming. "This spells `WIN' for Ontario: more support for charities, communities and commercial operators across the province." The collaboration of OLG, the OCGA and the CGAO heralds plans for an expansion in the number of Gaming Centres offering an array of new electronic games. The new games will allow Gaming Centres to be more competitive and appealing to a broader demographic, while providing a different gaming entertainment experience from traditional casinos or slots at racetracks. This initiative is intended to offer players an interactive environment, a new way to play bingo and charitable social games and enhanced customer service. "The intent of this revitalization initiative is to preserve and enhance the funding for charities across Ontario for years to come," said Lynn Cassidy, Executive Director of the OCGA. "The OCGA, in collaboration with OLG and the CGAO will work toward a secure funding model for charities across Ontario." "The charitable gaming sector is in support of this initiative because of what it will mean for commercial, operators of Bingo Centres, in seeking to broaden the appeal of this new exciting charitable bingo and gaming experience within the communities they operate" said Peter McMahon, Chief Executive Officer of the CGAO. "The Centres will offer Bingo games with a twist-electronic games that are exciting and engaging and will attract new players." The expansion of new games for the charitable gaming industry will build on the six pilot sites operating across Ontario, including: Boardwalk Gaming Centre Barrie, Treasure Chest Bingo in Kingston, Kawartha Club Bingo in Peterborough, Boardwalk Gaming Centre Sudbury and Breakaway Gaming Centre Windsor and Paradise Gaming Centre in Windsor. These sites have i 227 generated $30 million for their local charities since 2005. "From the municipality point of view, one of the biggest benefits we've realized in Peterborough during the pilot project is a streamlined administration process that saves time and resources," said Nancy Wright-Laking, City Clerk of the City of Peterborough. Peterborough is the home of a pilot Gaming Centre, the Kawartha Club Bingo. "Our participation in the initiative also provides a steady stream of revenue to help support the local funding model for charities. This is a great benefit for Peterborough." OLG is a provincial agency responsible for province-wide lottery games and gaming facilities. Since 1975, OLG lotteries, bingos, casinos, slots, and resort casinos have generated more than ,$32 billion for the benefit of the Province of Ontario. Gaming proceeds support Ontario's hospitals, amateur sport, recreational and cultural activities, communities, provincial priority programs such as health care and education, and local and provincial charities and non-profit organizations through the Ontario Trillium Foundation. THE ONTARIO PROBLEM GAMBLING HELPLINE 1-888-230-3505 Disponible en frangais -30- www.OLG.ca For more information contact: OLG Media Line 1.888.946.6716 R , Contact Us I Careers I Consumer Protection Site Map Francais This Web site is for the use of consumers in Ontario, who meet the minimum age requirements (at least 18 years of age in the case of lottery and bingo, and 19 years of age in the case of gaming). Terms of Use Privacy I Government of Ontario Privacy Policy Security I Legal ©201.1 Ontario Lottery and Gaming Corporation I 228 Mayfair Bingo (Pickering) Association 975 Dillingham Road, Pickering, ON UW 1Z7 May 16,2011 City of Pickering One The Esplanade Pickering, Ontario L 1 V 6K7 Attn: Ms. Debbie Shield Dear Ms. Shield: This is to inform the City of Pickering that the charities from Mayfair (Bingo) Pooling Association raising funds at Delta Pickering Bingo Hall have demonstrated a commitment of interest to participate in the Revitalization of Charitable Bingo and Gaming Initiative offered by Ontario Lottery and Gaming. We recognize that charitable bingo needs new technology and new products to remain viable for our charities in future years. Overall, bingo revenues in the province have been declining at an average of 8 to 10 percent a year. Bingo revenues are a critical source of fund raising for our charities and play an important role in providing needed services in this community. We are requesting that our municipality and our council support our participation in this new model and that the municipality agrees to move forward with the partnership with Ontario Lottery and Gaming. Sincerely, Linda Mair President of Mayfair Pooling Association, On behalf of the Charities Mayfair/Delta Pickering MAY.27. 2011 10:44AM DELTA BINGO NO. 037 P. 1 d83 Speers Road C~ Oakville, Ontario L6K 2G4 Phone: (905) 842-9386 Fax: (905) 8Q2-9232, Debbie Shields, City Clerk City of Pickering Dear Debbie, Please be advised that I fully support the exciting Bingo initiative being under taken by the OLG. Bingo hall operators have been working very closely with the OCGA (provincial charities association) and the OLG to bring this prog= to fruition. All of us involved with Delta Pickering are thrilled to have been chosen for the initial rollout. Please feel free to contact me if you require any further information. Yours truly, Cameron Johnstone Delta Bingo Inc. (416) 219-4457 - : . camOdeltabin7m.com a F. ~e ~3`0 5 ~ 5..:~"_! ~ F~- ..y~ Ly to ~ 1,-.,~* ~i Y- S IWI www.deltabing _ o.com