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f• • � 41
REPORT TO COUNCII.
FROM: Jene Burton
Ciry Solicitor
Gillis A. Paterson
Director, Corporate Services and Treasurcr
093
DATE: March 8, 2000
REPORTNUMf3GR: LIIA/00
SUBJECT: Streamlining ojAdminislrafion ojProvinclal O,(Jences Acl (13il1108)
- Provincial Offences dcf - Transfer
- File: L959502
RGCOMMENDATIONS:
That Report LI IA/00 be received und that Council:
I. Gndorse the Consultant's rccommenJation thnt the Region of Durhnm be the Service
Provider for the wurts administrntion and prosecution of procecdings pursuant to the
S�ream!lning uJAdmtnls�ration oJ�he Prm�Licla! O,(%e�tce Ac/, 1998, S.O. 1998, c.4 (Qil!
�ox�;
2. Endorsc thc rcvenuc shnring formula rccommcnded by thc seven Aren Trensurers Ihose
being thc Town of Ajax, Township of Drock, Municipality of Clurington, City of
Pickering, Township of Scugog, Toµn of Whitby, 7'ownship of Uxbridge und the
Trcasurcr of thc Regionnl Municipalily of Durhnm;
3. Authoriu thc Mnyor and Clerk to exccute the Intcrmunicipal Service Agrcemenl and
other rclated documenmtion necessnry ro finalize thc Provincia/ OJJence Acl transfer in a
form sntisfactory to thc Ciry Solicitor nr.d Director, Corporate Services and Treasurcr,
and
4. Dircct that such Intermunicipal Servicc Agrccment include, among other mutters, the
estnblishment of n 7oint Boazd of ManngemenUCommittcc (made up of rcprcsenmtivcs
from the municipnlities ond the Region) thnt will monitor the performance nnd activities of
tte Scrvicc Providcr.
ORIGIN: The Ministry of the Attorncy General — Provinclal O„(fences Acl Trnnsfer.
AUTHORITY: S�ream!lntng ajAdminls�rafton ojProvfnclal Offences Ac�, 1998, 5.0. 1998, c.4
(llil! 108).
FINANCIAL IMPLICATIONS:
• Approximntc net rcvcmie for Durham Region for thc ycar 2000
• Cily of Pickering share (based on Arca Trcasurers' rccommendntion)
• 1997/1998 Transfcr (to bc nllocnted to thc municipalitics
oncc Transfer is completcd with thc Ministry of Attomcy Gcncral)
�• 1998/1999 and 1999/2000 trnnsfer rcvenue fund (to bc nllocated to thc
municipolidcs oncc Trensf r is completed with thc Ministry
of Attomey General
53,828,083.00
729,884.00
2,000,000,00
Not Known
RepoH to Council LI I/00 March 8, 2000
O(�� Subject: Bill 108, The Strcamlining of Administration Pagc 2
oP Provinciel Otlonces Act
EXECUTIVE SUMMARY:
Bill 108, The Slreamlining oj Adinlnlstraflon oJ Provincful OjJ'ences Act, /997, providcs thc
framework for the trensfer of respnnsibility of lhe Provinciu! O,(J''ences Ac1("POA") administration
end prosecution matters from the Province to the municipalities.
In June, 1998, a POA Task Eorce (the "Task Force") wes fortned wilh representativcs Gom all
municipalities in Durhnm and one Gom the Region of Durhnm. The purpose of the Tesk Force wns
to gnther informntion and to explore the possibility of a coordinated npproach among the eight
municipnlities and the Region.
The Task Force retained PSTG Consulting (the "Consultant") ta provide a comprchensivc review of
the nawre und operations of the POA ndministration for Durhnm (the "Oshuwa Court Servicc Arca")
nnd to provide rccommendations regarding the preferced servicc dciivery option and revenue
sharing.
The Consultant's Final RepoA (thc "Report") wns submittcd on lnnuury 31, 2000 and recommends:
• that the Region of Durhnm bc ihe Scrvicc Providcr for the Oshawn Court Service Area;
nnd
• o formula for rcvcnuc sharing.
It should bc notcd that, the City oP Oshnwa docs not concur with thc Consultnnt's rccommendntion
for the Servicc Providcr. In lighl of this, thc Consultant sets out in the Rcport:
•"If thc POA 'fusk Force cnnnot rcach ngrecmcnl on thc preferrcd POA Service Provider, it is
rccommended that their moving fonvnrd oction bc to prcpare and relcnse an lnrernrr! �encler
for the intercstcd potentiul Scrvice Providcrs to bid. An indepcndent, objcctive third party
would bc rcquircd to mnnogc thc proccss:'
Thc Consultant furthcr aJvises that if thc Municipal und Rcgional Cauncils cannot rcuch n conscnsus
respccting thc Scrvicc Providcr, thc Ministry may select n Scrvicc Providcr from n neighbouring sitc
that has alrcady implcmented lhc transfer (i.e. York Rcgian).
Thc Ministry of thc Attomcy Gcneml ("Ministry") will acccpt only onc submission from cach Court
Servicc Arca and intcnds to complctc nll PO.1 transfcrs by Murch, 2001; submissions should bc
dclivcred to the Ministry, at thc latest by Septembcr, 2000,
Oncc n Service Provider is determincd evcry municipality, including the Region of Durhnm, as wcll
as First Nutions, will be rcquircd to cnter into an Intertnunicipnl Scrvicc Agrccmcnt ("ISA"). This
ISA will, nmong other Ihings, dewil the distribution of revenuc, the arrnngements regarding facilitics
and technology and estnblish a Joint Bonrd of Mnnagcment (mnde up of rcprcscntativcs from thc
municipalitics und thc Rcgion) that will monitor thc performancc nnd activitics of thc PO�f
operations.
BACKGROUND:
At the present time, the Ministry administers the Provincial Offences Courts in Ontnrio und rctnins
the associnted revcnue from fines. Thc POA sets out the processes to bc followed for administcring
nnd prasecuting charges laid by police and other enforcemcnt nuthorities under provinciul stntutcs
nnd municipal by-laws.
On Junc I I, 1998, thc Provincc of Onwrio pnssed Icgislation known ns thc Sfreantlining oJ
Adminlslrarlon ojProvincfal 0�,'"ences Ac� (It!!/ /0�. This Iegislation provldcs the framcwork for
the uansfcrring, to municipelitics, of the administrativc responsibilitics und sciccted prosecutorisl
functions for offcnces govemed by thc POA.
, Report to Council Ll l/00
., SubJect: Bill 108, Thc Streamlining of Adminisuatlon
ofProvinaial OfTences Act
Marcb 8, 2000
Page 3 09S
7'herc are ihree procedurai "streams" under the POA afTecttd by the Transfer:
Part 1- Minor Reaulatorv Offences
Administrative, prosecutorial end court support functions for Part 1 ol'fences (rcgulatory ticket
offences - including speeding under the Highway Treffic Act);
Ps_rt il - Parkina Infractions
Administrativc, prosecutorial and court support functions for the remaindcr of Pnrt II uffenccs
(parking tickets) not currently administered by municipalities; and
Part III - Serious Re¢ulatorv Offences (which e court aocearence is mandatorv)
Admmistralrve and court support functiuns for Part ill olTcnccs, which nrc o(Tences nrising from
morc scrious circumstanccs, nnd/or wherc no sct fine exists for the offence anJ to which n court
uppearance is mandntory.
It should bc noted that ccrtnin Provinciul ministrics �vill continue to prosec.itc somc Purt I anJ
Part III charges. The Transfcr dces not nffect existing municipal prosecutorinl functions, i.e. Ciq�
rJ Pickcring's Parl !1 (Parkin� und Part /// (hy-luu� o,(jenres) x�i!! iwt be u,(%cicd by �his
fru�ujer; nll rerenue col/ecled wi!! cominue l0 6e nlained by !he City.
In 1998, the Task Force was convened for the 4shawa Court Servicc Areu to rcview and examine
the informalion provided by the Ministry, Thc Tnsk Forcc wos compriscd of onc rcprcsrntativc from
each of the eight municipalities and ane rcprcscntative from the Rcgian. Pursuant to nn RFP
proccss, the Task Forcc rctaincd a Consultant lo providc u comprchcnsivc rcvicw of thc naturc and
operotions of thc POA nJministrution for Oshawa Court Scrvice Arca nnd to providc
recommcnJalions rcgarding thc prcfcrrcJ scrvicc dclivcry option nnd mcthod of rcvcnuc sharing.
Service Provlder Optlons
The Consultant rcvieweJ each municipality's nbility and willingness to provide Ihis scrvicc. Thc
following options wcre cxnmincJ:
• Rcgion of Durhnm
• City of Oshnwn
• City of Pickcring
• Region of Durham logethcr with cithcr Pickering or Oshawn
• Pickering and Oshnwa (joint)
• Privatc Seclor firm
Thc Consultant cvnluuted each option based on operational efliciency nnd cffcctive pertbnnar.cc.
The quantitative evaluation rcsulted in thc Region of Durham achieving thc highest scorc, with the
Region and Oshawa/Pickering being ucond, Oshawa as third and Pickering as fourth. All membcrs
of the Task Forcc, with thc exception of Oshawa, erc in agrcemcnt thnt lhc Region of Durham should
be the Service Providcr.
Revenue FaNmatea
Gross annual rcvenue estimatcs for the year 2000 are approximalcly S5,990,083.00. Gross amival
rcvcnuc is projected lo be approximately 57,645,032.00 by thc year 2005.
Rn�enue Sharing Optiona
Five options of rcvenuc sharing werc examined:
I 1.
2.
3.
4.
S.
,_ ; .
, _. . ;,
populalion
regional tex Icvy
gcographic location
equal shuro
stratlfied cqual sharc
09� Report to CouncYl LI I/00 March e, 2000
` SubJect: Bill 108, The Svwmlining ofAdministration Page 4
of Provinclal ORcncos Act
The Consulwnt cxamined various options of rovcnue sharing with e view that the Service Providcr
would receive no more or Iess than if it was not the Servicc Provider. This would minimize the
competition between the municipalities to bc the Service Provider. The Servicc Provider would be
compensatcd for providing ihe scrvice (through a management fee) and the balance would bc
distributed bascd upon the revenue distribution modcl �letertnined in the ISA.
The Consultant rccommends a manngemcnt fee of 36% be pnid to the Service Provider from the net
revcnues received. The Consuitant advised thnt this method was used in most of the pilo� PO,f
irnnsfer sites and givcn the uncertainty of the costs and rcvenues in the first �enr of operation, n
mrnagement fec of 36% should pirovide the optimal solution. The Trcasurcrs involvcd in
considering the revenue sharing models did not disngrec with this position.
The Consuitnnt recommcnds thc "Stratified Equal Sharc" option for rcvcnuc distribution (S�h
option). This oFtion providcs thnt all of the urban municipalitics (Pickcring, Ajax, Whitby, Oshawu,
and Clarington) ns well as the Rcgion of Durham would each receive I S%of the nct revcnue nnd the
northcm municipalities (Uxbridge, Eirock, Scugog and First Nations) �vould shnrc 10%.
The Tusk Force prcscntcd thc five options to thc Arca Trcasurcrs for thcir rcview and considcration.
Seven of thc eight Arcn Trcasurcrs nnd the Trcnsurer of thc Region concluded thut the five options
for rcvenuc sharing including thc rccommcndcd "Strotificd Equal Sharc" option «�crc nut acceptablc
ond endorscd another option, m�mely that net POA revcnuea, atter paymcnt ot costa to the
Scrvice Providcr, ahould be aplit SO•/. to the Reqion and SOY. to the area municipalitie�. The
area municiprlilies' a6rre would be distribulcJ amongri the eight lowcr tier municipalitie�
based upon lasable as�es�ment. This option also allows for Ihc txncfits of the Rcgionnl sharc to
flow back to thc local taxpaycrs of cnch �rca municipalily hascJ upon tuxublc asscssmcnt.
Tlre Treo.rurrr jir IGe Cirv ofr«�k���;,,�; „�;re,u�• �„n��,�•�u���r d��� ��Rrgiona! Tar I.etiy" (1n<<op�i��n)
approuch. even drnugh if provrded sli�hdp less rerenue.fi�r Pickering. .I.c a msull, u�h•oculing the
50:50 npprnach �ras rclulivcl�� srruigbr.fr�r�rnrd as i! u•us !he oplio�� ll�nf irotdd prm•i..'ir �he friiresr
approuclr j�r n!I �xirmers.
Note: Tlrc Crtv oj Oshniru docs nnt endorsr !!�c rcconmicndalion nmdc hp Ihr Aren Trcasurcrs,
pr�jrrrin�; �he Shulifred Eq�ml Sharc oplrnr� rcrommcnded lrt� Ilic Ciinsulrnnl.
In addition to collecting futun rcvcnucs, cach municipal partner «•ill reccivc thc uccumulatcd net
rcvcnuc for its nrcn held in trust sincc Jnnuary I, 1998. Municipalilics will rcccivc thcsc funds at thc
timc thc transfcr ogrccmcnt is finalizcd. Thc Accumulated nct rcvcnuc will lx shnrcd among
municipalitics wilhin thc Oshawa Coun Scrvicc Arca nccording ta thc tcrms sct out in thc ISA.
Therc arc approximntcly 52,0OO,OD0.00 in POA rc��enuc being hcld on account at ihe Rcgion for the
1997/1998 yenr end nnd there will be udditionnl POA rcvenue uttributnble to the Osh�wa Court
Scrvicc Arca Gir thc ycars cnding 1998/1999 and 1999/2000.
Costs
Thc projectcd operoting costs for the ycar 2R00 is approximntely 52,162,000.00. Thesc cosu includc
salnries/bcncfits; facilities; ndditionnl cour'.room and support; technology nnd provincial chargebnck
costs. Therc will nlso be trnnsitional custs of approximately 5500,000.00 incurred in thc transfcrring
thc PO.1 ndministration from thc Provincc to thc Oshawa Court Scrvicc Arca's designatcd Scrvicc
Provider. Such costs mey include space acquisition; officc cquipment; supplics; ctc. Thcrc moy nlso
bc additionol cosls for acquiring tcchnology for "mobile" dala input by cnforccment ngencics. /11 hile
rhla cnsr fs nor srrlcrly �x,rr oJrhe POA dawnloadinR prncess, i� reprrsenrs n�x�renria! impm�rnirnt
ojlhe curren! process �Jenjorcement and adminis�ra�inn).
It should be noted, that the Consulwnt's Report stntes Ihnt the accuracy of Ihe cost nnd rcvenuc
estimatcs is considcrcd to bc high. If thc numbcr of chnrgcs wcrc to dccrcau significnntly, thc nct
revenucs would expericncc a corresponding decreasc. Ilowevcr, duc to thc cstimatcJ mntgin
betwcen current costs and rcvcnucs nnd Poturc cnforccment pinns (ic. Durham Rcgional Police), the
risk of expericncing e finencial loss in opcmtions is considercd low.
�
, RepoR to Council W 1/00
� SubJat: Bill 108, The Strcamlining of Administret(on
of Provincial Offencea Act
Conclu�ion
March 8, 2000
Page 5 � 4 7
We recommend that Council support the Rcgion of Durham as the Service Provider. Wc furiher
recommend thnt the revenue sharing option fnvoured by ►hc seven Arca Treasurers and Ihc
Treasumr for the Region be supported.
Once a Service Provider i� detertnined, every municipality, including ths Region of Durham will bc
requireJ to enter into an ISA. This ISA will, umong other things, detail the distribution of rcvenuc,
thc arrangements regarding facilitics and technology and establish a Joint Board of Managcmcnt
(mnde up of representatives from the municipalitics and the Region) that will monitor the
perFortnancc and activities of the POA operations.
It should be noted that if Municipal end Regional Councils connot rcach a consensus rcspecting the
Servicc Provider, the Ministry may select a Service Provider from n neighbouring site that has
already implemented the trnnsfer (i.e. York Region).
Please nnfe, alf background docwnenration relaling ro rhis marter l�as been sent ro Council under
separute cover jor lnJorma�ion pur�ro.res.
ATTACHMENTS:
Revenuc Shuring Uption Chnrt ns rccommendcd by the Arca Trcnsurcrs und Rcgional
Trcnsurcr.
Prepered By:
� ' iUl1'�/
Denisc f3yc�
�A.alf/JJ
Jo Pnrsons
Attachments
Capy: Chicf Administrativc Officcr
Ciry Clerk
Director, Operntions and Emergency Services
Director. Plunning and Development
Approvfd / GnJorsc Dy:
/
lonc Burton �
✓
Gillis A. Pnterson
Recommended for the consideration of Pickering
Ciry Cou il � ��
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