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Home My WebLink AboutNovember 9, 2015 For information related to accessibility requirements please contact Linda Roberts Phone: 905.420.4660 extension 2928 TTY: 905.420.1739 Email: lroberts@pickering.ca Executive Committee Agenda Monday, November 9, 2015 Council Chambers 2:00 pm Chair: Councillor Pickles Anything highlighted denotes an attachment or link. By clicking the links on the agenda page, you can jump directly to that section of the agenda. To manoeuver back to the agenda page use the Ctrl + Home keys simultaneously, or use the “bookmark” icon to the left of your screen to navigate from one report to the next. (I) Disclosure of Interest Executive Committee Meeting Agenda Monday, November 9, 2015 Council Chambers 2:00pm Chair: Councillor Pickles Pages (II) Delegations 1. Michele James, Vice President, Women's & Children's Program and Clinical Support Services & David Brazeau, Director, Public Affairs, Community Relations & Telecommunications Re: Update on Rouge Valley Health System 2. Martin Field Re: Adoption of a TNR (Trap-Neuter-Return) Program 3. Denise Harkins, President Action Volunteers for Animals Re: TNR Program (II) Matters for Consideration 1. 2. Consultant/Staff Delegation Paula Jesty, Deloitte LLP on Report FIN 24-15 Director, Corporate Services & City Solicitor, Report FIN 24-15 2015 Year End Audit Plan Recommendation 1-40 1. That the Audit Plan as submitted by Deloitte LLP, included as Attachment 1 to this report be received for information; and, 2. That the Chief Administrative Officer and the Division Head, Finance & Treasurer be authorized to sign the Auditor's Engagement Letter on behalf of the City. Director, Corporate Services & City Solicitor, Report BYL 01-15 yth Annual Toys for Tickets and Food for Fines 2015 41-42 Accessible •-For information related to accessibility requirements please contact Linda Roberts PICKE~G Phone: 905.420.4660 extension 2928 TTY: 905.420.1739 Email: lroberts@pickering .ca 3. Recommendation Executive Committee Meeting Agenda Monday, November 9, 2015 Council Chambers 2:00pm Chair: Councillor Pickles 1. That parking tickets issued between December 1 through 18, 2015 be eligible for the Toys for Tickets/Food for Fines program; and 2. That the Toys for Tickets/Food for Fines program be implemented from December 1 through December 18, 2015. Director, Corporate Services & City Solicitor, Report CLK 05-15 2016 Standing Committee and Council Meeting Schedule Recommendation 43-45 That the 2016 Standing Committee and Council Meeting Schedule included as Attachment 1 to this report, be approved. 4. Director, Culture & Recreation, Report CR 18-15 46-61 Consulting Services for Building Condition Assessments and Facilities Asset Management System -Request for Proposal No. RFP-2-2015 Recommendation 1. That Proposal No. RFP-2-2015, for Consulting Services for Building Condition Assessments and Facilities Asset Management System, submitted by VFA Canada Corporation in the amount of $275,715.86 (HST included) be accepted; 2. That the total gross project cost of $284,756.00 (HST included), including the amount of the proposal and other associated costs, and the total net project cost of $256,432.00 (net of HST rebate), be approved; 3. That Council authorize the Division Head, Finance & Treasurer to finance Year 1 Implementation and Assessments net project cost of $106,087.00 as follows: a) The sum of $25,000.00 as provided for in the 2015 Current Budget Culture & Recreation Administration be increased to $26,522.00, to be funded from property taxes; b) Executive Committee Meeting Agenda Monday, November9,2015 Council Chambers 2:00pm Chair: Councillor Pickles The sum of $75,000.00 as provided for in the 2015 Current Budget Culture & Recreation Administration be increased to $79,565.00 to be funded by a transfer from the Development Charges Reserve Funds-Growth Studies (DCRF); and 4. That the appropriate City of Pickering officials be authorized to take the necessary action to give effect hereto. 5. Director, Culture & Recreation, Report CR 20-15 62-95 City of Pickering Five Year Accessibility Plan (2016-2020) 6. -Endorsed by the City of Pickering Accessibility Advisory Committee Recommendation 1. That Council endorse the City of Pickering Five Year Accessibility Plan (2016-2020) as prepared by staff and endorsed by the City of Pickering Accessibility Advisory Committee. Director, Engineering & Public Works, Report ENG 19-15 Proposed Traffic By-law Amendments -Father Fenelon Catholic School Recommendation 96-104 1. 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, specifically to propose the installation of stopping restrictions on both sides of Eyer Drive at the newly constructed Father Fenelon Catholic School, and to remove the stopping restrictions on both sides of Liverpool Road at the existing location of Father Fenelon Catholic School that will be closing in December 2015; 2. 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, specifically to propose parking restrictions on the west side of Liverpool Road at the closing of Father Fenelon Catholic School; 3. 4. Executive Committee Meeting Agenda Monday,November9,2015 Council Chambers 2:00pm Chair: Councillor Pickles That the attached draft by-law be enacted to amend Schedule "3" to By- law 6604/05 to provide for the regulation of bus loading zones on highways or parts of highways under the jurisdiction of the Corporation of the City of Pickering, specifically to propose the removal of the on-street school bus loading zone on the east side of Liverpool Road at the closing Father Fenelon Catholic School; and That the existing crossing guard location on Liverpool Road at Ilona Park Road be removed, and if required, staff to add a school crossing guard location on Eyer Drive at the newly constructed school. 7. Director, Engineering & Public Works, Report ENG 20-15 105-118 Proposed All-way Stop Control, Rosebank Road and Toynevale Road 8. Recommendation 1. That the attached draft by-law be enacted to amend Schedule "7" to By- law 6604/05 to provide for the regulation of stop signs on highways or parts of highways under the jurisdiction of The Corporation of the City of Pickering, specifically to address the proposed installation of an all-way stop control at the intersection of Rosebank Road and Toynevale Road; and 2. That the existing school crossing guard station on Rosebank Road in front of Rosebank Road Public School be relocated to the intersection of Rosebank Road and Toynevale Road upon installation of the all-way stop control at this intersection. Director, Corporate Services & City Solicitor, Report FIN 22-15 Banking and Financial Authorities Recommendation 1. That Resolution# 144/99 be repealed; 119-123 2. That the Division Head, Finance & Treasurer be authorized and directed to undertake any and all activities, including the execution and signing of agreements and contracts, necessary to undertake, safeguard and ensure the financial affairs and banking of the City, including, but not limited to, those items and activities indicated in Attachment 2, Section A; 9. 3. 4. Executive Committee Meeting Agenda Monday, November 9, 2015 Council Chambers 2:00pm Chair: Councillor Pickles That the Mayor, Division Head, Finance & Treasurer, Deputy Treasurer, Manager, Accounting Services and Manager, Budgets & Internal Audit be named Signing Officers for the purposes of conducting the financial affairs and banking of the City of Pickering and that any two of them be authorized to undertake the activities outlined in Attachment 2, Section B and any one of them be authorized to undertake the activities outlined in Attachment 2, Section C; and That the appropriate officials of the City of Pickering be authorized to take the necessary action to give effect hereto. Director, Corporate Services & City Solicitor, Report FIN 25-15 Cash Position Report as at September 30, 2015 124-133 Recommendation That report FIN 25-15 from the Director, Corporate Services & City Solicitor be received for information. 10. Director, Corporate Services & City Solicitor, Report FIN 27-15 Financial System Status Update 134-165 Recommendation That report FIN 27-15 from the Director, Corporate Services & City Solicitor be received for information. (Ill) Other Business (IV) Adjournment From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: 2015 Year End Audit Plan Recommendation: Report to Executive Committee Report Number: FIN 24-15 Date: November 9, 2015 1. That the Audit Plan as submitted by Deloitte LLP, included as Attachment 1 to this report be received for information; and, 2. That the Chief Administrative Officer and the Division Head, Finance & Treasurer be authorized to sign the Auditor's Engagement Letter on behalf of the City. Executive Summary: In accordance with generally accepted auditing standards, the Audit Plan is prepared to communicate the auditor's approach and reporting responsibilities to the Executive Committee, who has oversight responsibility for the financial reporting process. This plan is submitted prior to the commencement of the year end audit. · Financial Implications: The base audit fee for City and Library is estimated at $70,000. This is approximately a 2% increase over the previous year, which is reasonable as it is the first increase in four years. The City implemented a new property tax system in 2015. This requires additional audit procedures to ensure that the conversion of data is complete and accurate, and to test new interfaces and access controls. This one-time audit fee is estimated to be $7,500. Accounting standard PS3260, Liability for Contaminated Sites, becomes effective with the 2015 reporting year. Additional audit fees are anticipated in the range of $2,500 to $3,500 to ensure compliance with this standard. Sufficient provision is available in the 2015 budget. Discussion: In the Committee's role as the body responsible for oversight of the financial reporting process, the Committee is to review the Audit Plan for the 2015 year end audit. The Audit Plan includes the scope of the audit services to be provided, the auditor's reporting responsibilities and an outline of the audit approach. It is included as Attachment 1 to this report. 1 2 Report FIN 24-15 November 9, 2015 ·Subject: 2015 Year End Audit Plan Page 2 end audit. The Audit Plan includes the scope of the audit services to be provided, the auditor's reporting responsibilities and an outline of the audit approach. It is included as Attachment 1 to this report. · At the Council meeting of June 13, 2011, Resolution 122/11 appointed Deloitte LLP as the City's external auditors for a period of 5 years from and including 2011-2015. However, Deloitte LLP requires an annual Engagement Letter to be executed prior to each audit which summarizes their role as external auditor, management's responsibilities and the estimate of the audit fees. The Engagement Letter is included as Attachment 2 to this report. Attachments: 1. 2015 Audit Service Plan 2. Engagement Letter Prepared By: ,1{c) 1xu ~~ Kristine Senior Manager, Accounting Services Recommended for the consideration of Pickering City Council ~ 1/7 (j):tftH?.t~/( Tony Prevedel, P.Eng. Chief Administrative Officer Approved/Endorsed By: / e Services & City Solicitor Deloitte 201 Audit rvice Ia The Corporation of the City of Pickering For the year ending December 31, 2015 To be presented to the Executive Committee lns1till g 'O·UH t:fl . -'=" Deloittef~ October 22, 2015 Private and confidential To the Members of the Executive Committee of The Corporation of the City of Pickering 1 The Esplanade Pickering ON L 1V 6K7 Dear Executive Committee Members: 2016 Audit service plan We are.pleased to present our 2015 audit service plan for The Corporation of the City of Pickering ("the City"), which describes our audit scope and strategy, our audit approach and our planned communications with you. Our audit will include: An audit of the City of Pickering's consolidated financial statements (the "Financial Statements") for the year ended December 31, 2015 prepared in accordance with Canadian Public Sector Accounting Standards ("PSAS"); An audit of the City of Pickering Public Library Board's financial statements for the year ended December 31, 2015 prepared in accordance with Canadian PSAS; and An audit of the Trust Funds of the City of Pickering's financial statements for the year ended December 31, 2015 prepared in accordance with Canadian Accounting Standards for Not-for-Profit Organizations. We are providing this audit service plan to the Executive Committee ("the Committee") on a confidential basis. It is intended solely for the use of the Committee to assist you in discharging your responsibilities with respect to the Financial Statements and is not intended for any other purpose. Accordingly, we disclaim any responsibility to any other party who may rely on it. We look forward to discussing our Audit service plan with you and to answering any questions that you may have. Yours truly, (J}~LU Chartered Professional Accountants Licensed Public Accountants Deloltte LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 6L7 Canada Tel: 416-601-6150 Fax: 416-601-6610 www.deloitte.ca (11 t 2015 Audit plan at-a-glance ...................................................................................... 1 Our audit explained Audit risks Appendices Appendix 1 -Audit approach Appendix 2 -Communication requirements Appendix 3 -Financial reporting update © Deloitte LLP and affiliated entities. The Corporation or the City or Pickering-2015 Audit service plan 14 6 m 2015 Audit plan at-a-glance Perform high quality audits, enabling us to express opinions on the 2015 Financial Statements. Understand and be responsive to the expectations of the Committee and management · Communicate regularly and openly with the Committee and management in accordance with professional standards focusing on audit risks and matters of special interest Issue independent auditor's reports as required ------- Deliver services that assist the City in meeting current and future -accounting and regulatory requirements Enhance the value of our communications Have frank, open and timely communications --------~---~-~----------------· .. --·. -. --------------------~-~----------------··--·----------------- Make and meet our commitments to the City Assemble the right team Provide valuable insights from our audits © Deloitte LLP and affiliated entitles. The Corporation of the City of Pickering-2015 Audit service plan Revenue recognition ----------- Management override of controls -----------~--------------·----~-------- Management estimates ··------ Tax system conversion Implementation of PS 3260 -Liability for Contaminated Sites Paula Jesty Engagement Partner Andrew Mifsud Audit Manager Elena Stepanov Senior Tabish Gill IT Senior Manager Alex Georgievski IT Manager ....... Our audit explained Audit scope and terms of engagement Significant events We are not currently aware of any significant events that would impact the audits of the Financial Statements for the December 31, 2015 year end other than the conversion of the property tax system to TXM and the implementation of PS 3260-Liability for Contaminated Sites. We have been asked to perform the audits of the City's, Library's, and Trust Fund's Financial Statements as at, and for the year ending, December 31, 2015 (the "Financial Statements") in accordance with Canadian Public Sector Accounting Standards ("PSAS") for the City and the Library Board and Canadian Accounting Standards for Not For Profit Organizations for the Trust Funds. Our audits will be conducted in accordance with Generally Accepted Auditing Standards ("GAAS"). The terms and conditions of our engagements are described in our audit engagement letter which is to be signed on behalf of the Committee and management. We have scheduled the interim audit the week of November 23, 2015 and the year-end field work commencing March 21, 2016. Ma!eriaii!y We are responsible for providing reasonable assurance that your Financial Statements as a whole are free from material misstatement. Our materiality will be determined as follows: • Consolidated financial statements for the City-2.5-3.0% of expenses • City of Pickering Public Library Board-approximately 3% of expenses, and • City of Pickering Trust Funds-approximately 3% of fund balances. We will report to the Committee all uncorrected misstatements greater than a clearly trivial amount (5% of materiality) and any misstatements that are, in our judgment, qualitatively material. In accordance with Canadian Generally Accepted Auditing Standards (GAAS), we request that misstatements, if any, be corrected. © Deloltte LLP and affiliated enlitles. The Corporation of the City of Pickering-2015 Audit service plan Audit risks Through our preliminary risk assessment process, we have identified the significant audit risks. These risks of material misstatement and related audit responses are discussed in the "Audit Risks" section of this report. When designing our audit strategy, we also consider: • The financial significance or relative importance of the consolidated entities or any government business enterprises accounted for on a modified equity basis • The complexity and nature of the operations, internal control and accounting issues on each consolidated entity, and • The degree of centralization or decentralization of processes and controls. We intend to use the work of the auditor of Veridian. We will complete all required communications with the Component auditor, ensure the accounting for the City's share of Veridian income is appropriate and ensure the disclosures in the Financial Statements is adequate. CXI Fraud risk We will develop our audit strategy to address the assessed risks of material misstatement due to fraud. Determining this strategy will involve: Complete engagement reporting 1. Asking those involved in the financial reporting process about inappropriate or unusual activity. 2. Testing a sample of journal entries throughout the period as well as adjustments made at the end of the reporting period. 3. Identifying and obtaining ah understanding of the business rationale for significant or unusual transactions that are outside the normal course of business. Under GAAS, we are required to communicate certain matters to the Committee. The primary reports and formal communications through which we will address these matters are: o This Audit Service Plan 4. Evaluating whether your accounting policies may be indicative of fraudulent financial reporting resulting from management's effort to manage results. 5. Evaluating whether the judgements and decisions related to management estimates indicate a possible bias. 6. Incorporating an element of unpredictability in selecting our audit procedures. o Year End Communication, and o Our Independent auditor's reports on the Financial Statements. We will also ask the Committee for their views about the risk of fraud, whether they know of any actual or suspected fraud affecting the City and their role in the oversight of management's antifraud programs. Further details on communication requirements can be found in Appendix 2. If we suspect fraud involving management, we will immediately inform the Committee of our suspicions and discuss the nature, timing, and extent of audit procedures necessary to complete the audits. Ruli<mce on senri1.a~ or~ranizaiious The City employs this third party service organization in an outsourcing arrangement that impact financial reporting information: o ADP Canada (payroll) We intend to rely on the report issued by the independent auditors of this third party service organization. If our assessment does not provide us with sufficient appropriate audit evidence, we will need to perform additional audit procedures to address the risks of material misstatements in the Financial Statements. We also intend to use the work of the City's actuary, Morneau Shepell in their determination of the City's post employment and worker's compensation benefits. We will review and test any data and assumptions used, ensure the disclosure in the financial statements is adequate and that the actuary is in good standing with the Canadian Institute of Actuaries. © Deloltte LLP and affiliated en!l!ies. The Corporation of the City of Pickering-2015 Audit service plan Audit fees With regards to the City's financial statements and the Trust Funds financial statements, we propose audit fees of $64,250 (2014- $63,000). There will also be a one-time fee of $7,500 related to the conversion and control review related to the implementation of the TXM tax system and a one-time fee of approximately $2,500 -$3,500 relating to the implementation of PS 3260-Liability for Contaminated Sites. We propose fees of $5,750 (2014-$5,600) for the audit of the Library's financial statements. co Audit risks During our risk assessment, we identified some areas of audit risk that will require special audit consideration. These areas of risk, together with our planned responses, are described below. The following tables set out certain areas of audit risk that we identified during our preliminary planning activities, including our proposed response to each risk. Our planned audit response is based on our assessment of the likelihood of a risk's occurrence, the significance should a misstatement occur, our determination of materiality and our prior knowledge of the City. Revenue recognition* ! AssJrance~t~hdard~inoluti~.the presurr1btioh 6¥·~· iraJd ri~k lnv()lyih~ iri)p~d~~t'/ . re\ienuer~cognltion~··(Reliet)Ue/d~fetre!d·t~v.e~.Ue). Management override of controls* Ass'ur~h ·'oVerride ofct'ln M~~~~etl1e~t Is if1 ~ -· , . .,-~ .---···,-· . . ... l:lbilily to diredly o{lridlrec!ly m~nipulate. Elocbuhtlng. recbrds. finan~ial sta~emenk6y overriding ct)ntrois' tnat ?iherwlse .... effectively,. · · : :• •: .; , .:' • > ·· . :;:;'! ', ',i,; ,:::;: . '"' ' <c' . *Significant risks © Oeloltte LLP and affiliated entities. The Corporation of the City of Pickertng-2015 Audit service plan presumed areaof audit risk, \Jve Will test imr'll<>m.,nt .. Hnn tifco~trols. in these reVenue streams. a.nd pelio res ,and detailed testing .in these areas,. ahd ·• .• t()ideterrriilieiUe~trict~d cantribUtiohs(i.~ .•.• d~Jei6~t'nenf. goverhrnent tr~nsfers have ~een recognizeq a~ .revenue~~ the .. p~fl()d;.(f{evenu,e 1/s, deferred r~v~nue).,i ·· · · · · · · ·· fo6ht~ols we will: · · mscuss1o11§ With 6ertaih hie;, bets t>t s~niot ···~···~''" .,.,,.,i ~:~11~i!l~t~~:ai~l~J:i\,~~:r:~;,;~, ~:~~1r.""~,;. th~ busi~es~>ratiohaleJDt any sighiflca~t ll~usual transactions •·. · •-.· .• , ·.· eva1ua1~•th~ fity1s fr~Cd·d~k ~~$~s~~~qland :co~~~d~t e~tity~level.itit~fri~l •.•..•. ·•· .andinte(hal oontrbls6\ief ttieclosihg·~n.~:r~po~ing process. >·:• ··•·•··.· . . ·~,;! JoJ'rnal e~~~~~~ 'lh~t ~xhi.bit oha ratt~ti~tlcs,bf .p6~~ ibl~ .t)i a.h~gernef1t.override /; o.fbqntrolsl;.idel.l(ifie~ l.lslng i)iaf:1UaiieohniquE!s,; • ·. ··· · · · , • c C • , •, ',' , ; : ~ , , / t , , , .; , • <· ~. ·.. ' , , , ·" . ·. " ·. : 1.. , ," • • • • • , 1 • ' , , • : • • --• : • c , • ', , I' 4 __. 0 ManagerrHmt estimates Audit tisk Implementation of new Property Tax System (TXM) ~isk ldP.Htif'ied hnplernenlation ol PS 3260 -Liability lor Contaminated Sites We will inform you of any significant changes to the areas of audit risk discussed above and the reasons for those changes as part of our year end communication, or earlier if deemed necessary. © Deloltte LLP and affiliated entitles. The Corporation of the City of Pickering-2015 Audit service plan 5 __.. __.. Risk of fraud Fraudulent acts include the deliberate failure to record transactions, forgery of records and documents, and intentional misrepresentations made to our Audit engagement team. Fraud may include intentional acts by management or employees acting on behalf of the City, as well as employee fraud if management or employees are involved in actions that defraud the City. Deloitte does not assume that management is dishonest nor do we assume unquestioned honesty. Rather, in accordance with Canadian GAAS, we exercise professional skepticism and recognize that the conditions we observe and evidential matter we obtain, including that obtained from prior audit engagements, need to be objectively evaluated to determine whether the Financial Statements are presented fairly in all material respects. We have begun the process of co-ordinating discussions regarding fraud and error with certain members of management. We are also required to make certain inquiries of the Committee regarding the risk of fraud at the City. In that context, we would like to hear your comments on the following: • The Committee's views about the susceptibility of the City to fraud, both in the context of fraudulent financial reporting and the misappropriation of assets • Whether the Committee has knowledge of any actual, suspected or alleged fraud • The Committee's role in exercising oversight of management's antifraud programs • Whether the Committee has received any tips or complaints regarding financial reporting and, if so, the Committee's responses to such tips and complaints, and Misappropriation of inventory/assets 48% Source: CGA Institute of Caua<la:s report on o_ccupaliooal f[al.ld Assets/revenue overstatement or understatement 5% Theft of proprietary information and Intellectual property I Corruption 9% 5% Misrepresentation of credentials of d,acuments 5% Misappropriation of cash 19% To facilitate our discussion, we have highlighted in the diagram above the areas where fraud manifests itself most frequently and have listed some common fraud risk scenarios below: 1. Fictitious revenue transactions 2. Improper capitalization of expenses 3. Manipulation of management estimates (e.g. provisions, valuation of assets) 4. . Understating loans and payables 5. Journal entry fraud 6. Awarding contracts to parties related to individuals involved in the decision making process 7. Splitting orders to avoid obtaining quotes or to get around delegation limits 8. Authorizing orders to a particular supplier in return for bribes 9. Giving and accepting payments to favour or not favour other transactions or relationships 10. Submitting for payment false invoices from fictitious or actual suppliers 11. Creation of fictitious bank accounts 12. Fictitious (or ghost) employees on the payroll • Whether the Committee is aware of violations or possible violations of 13. Falsifying timesheets or overtime worked to achieve fraudulent overtime payments 14. Improper changes in salary levels laws or regulations. © Deloitle LLP and affiliated entities. The Corporation of the City of Pickering-2015 Audit service plan 15. 16. 17. 18. False, duplicate or inflated expense claims submitted Improper use of company credit cards Inadequate application (software) controls resulting in unauthorized access Theft, sale, transfer or abuse of proprietary or confidential information 6 c: "' en 0. CD " (]) "2: g: i§ (.) " < ~ ·-0 N -c I "' <::: ."<= c U>CD CD.>O :;:::() ~0: (]) .,_ "00 2~ .!!10 0.. ~CD rn£ -go "'" 0.. ji <:( CD 0 :of:-~8 OCD @;:: 1 2 ....... w Appendix 1 -Audit approach Deloitte's audit approach is a systematic methodology that enables us to tailor our audit scope and plan to address the unique issues facing the City. The following steps are not necessarily sequential nor are they mutually exclusive. For example, once we've developed our audit plan and the audits are being performed, we may become aware of a risk that was not identified during the planning phase. Based on that new information, we would reassess our planning activities and adjust the audit plan accordingly. ' 1. Initial planning The Deloitte's audit approach begins with an extensive planning process that includes: • Assessing your current business and operating conditions • Understanding the composition and structure of your business and organization • Understanding your accounting processes and internal controls • Understanding your information technology systems • Identifying potential engagement risks • Planning the scope and timing of internal control and substantive testing that take into account the specific identified engagement risks, and • Coordinating our activities with external parties and experts and/or Deloitte specialists. Our Audit will take into account specific items of particular interest raised by the Committee as well as areas of concern identified by the Committee or management. 2. Assessing and responding to engagement risk Our audit approach combines an ongoing identification of risks with the flexibility to adjust our approach when additional risks are identified. Since these risks may impact our audit objectives, we consider materiality in our planning to focus on those risks that could be significant to your financial reporting. © Oeloltte LLP and affiliated entities. The Corporation of the City of Pickering-2015 Audit service plan 8 ....... -'=" Risl< assessment We compile information from a variety of sources, including discussions with management and the Committee, to identify risks to the City's financial reporting process. that may require attention. Our preliminary risk assessment takes into account: o Key business developments and transactions (internal and external) o Current business, regulatory and accounting pronouncements and developments o Key management strategies and business plans o Prior years' audit results o Results of procedures relating to internal control, and o Areas of significant risk. The risks that we have identified to date, and which will be addressed when conducting the audits, are summarized in the "Audit risks" section. As we perform our audits, we will update our risk assessment. We will inform the Committee of any significant changes to our risk assessment, and any additional risks that we identified, in our year end communication, or earlier if deemed necessary. Consideration of the risk of fraud Maintaining an attitude of professional skepticism means that we carefully consider the reasonableness of the responses we receive to our inquiries from management and the Committee, and evaluate other information obtained from them in light of the evidence we obtain during the audits. When we identify a misstatement or control deficiency, we consider whether it may be indicative of fraud and what the implications of fraud and significant error are in relation to other aspects of the audits, particularly the reliability of management representations. Because of the inherent limitations of internal control, including the pos.sibility of collusion or improper management override of controls, it is possible that material misstatements due to error or fraud may not be prevented or detected on a timely basis. Accordingly, the assurance an auditor provides concerning the lack of misstatements arising from fraud is necessarily lower than the assurance provided concerning those arising from an error. Misstatements in the Financial Statements can arise from either fraud or error. The distinguishing factor between fraud and error is whether the underlying action that results in the misstatement of the Financial Statements is intentional or unintentional. The following table explains our respective responsibilities towards fraud. o The primary responsibility for the prevention and detection of fraud rests with management and the Committee, including the responsibility for establishing and maintaining internal controls over the reliability of financial reporting, ensuring the effectiveness and efficiency of operations, the identification of fraud risks and compliance with applicable laws and regulations. © Deloltte LLP and affiliated entities. The Corporation or the City of Pickering -2015 Audit service plan o We are required to obtain representations from management regarding internal controls, assessment of risk and any known or suspected fraud or misstatement. o As independent auditors, we will obtain reasonable, but not absolute, assurance that the Financial Statements as a whole are free from material misstatement, whether caused by fraud or error. ........ C11 In determining our Audit strategy to address the assessed risks of material misstatement due to fraud, we will: • Assign and supervise personnel, taking into account the knowledge, skill and ability of individuals with significant engagement responsibilities and our assessment of the risks of material misstatement due to fraud for the engagement • Evaluate whether the City's selection and application of accounting policies, particularly those related to subjective measurements and complex transactions, may be indicative of fraudulent financial reporting resulting from management's effort to manage results, and • Incorporate an element of unpredictability when selecting the nature, timing and extent of our audit procedures. We will inquire directly of the Committee regarding: • Its views about the risk of fraud • Whether it has knowledge of any actual or suspected fraud affecting the City, and • The role it exercises in the oversight of fraud risk assessment and the establishment of mitigating controls. We will also inquire if the Committee is aware of tips or complaints regarding the City's financial reporting and, if so, the Committee's responses to such tips and complaints and whether it is aware of matters relevant to the audits, including, but not limited to, violations or possible violations of laws or regulations. If we suspect fraud involving management, we will communicate these suspicions to the Committee and discuss the nature, timing, and extent of audit procedures necessary to complete the audits. lnfonnation technology An important part of our audit planning process involves gaining an understanding of: 1. The importance of the computer environment relative to the risks to financial reporting 2. The way in which that environment supports the control procedures we intend to rely on when conducting our audits, and 3. The computer-based information that supports our substantive procedures. The objective of our review of computer controls is to identify potential areas of risk and assess the relevance, reliability, accuracy and completeness of the data produced by the systems. We also assess the design and implementation of controls relevant to the computer environment and determine the reliability of the financial information used to generate the Financial Statements. To accomplish this, we gain an up-to-date understanding of the City's computer processing environment and our understanding of the relevant general computer controls. We will assess the design and implementation of general computer controls in the following areas: 1. Data centre and network operations 2. System software acquisition, change and maintenance 3. Program change 4. Access security, and 5. Application system acquisition, development, and maintenance. © Deloltle llP and affiliated entities. The Corporation of the City of Pickering-2015 Audit service plan 10 ...... m 3. Developing and executing the Audit plan The performance of the audits include evaluating the design and determining the implementation of internal controls relevant to the audit, testing the operational effectiveness of the controls we intend to rely on and performing substantive audit procedures. Audit procedures The timing of our audit procedures is dependent upon a number of factors including the need to coordinate with management for the provision of supporting analysis and other documentation. Generally, we perform our audit procedures to allow us sufficient time to identify significant issues early, thereby allowing more time for analysis and resolution. Tests of controls As part of our audits, we will review and evaluate certain aspects of the systems of internal control over financial reporting to the extent we consider necessary in accordance with Canadian GAAS. The main objective of our review is to enable us to determine the nature, extent and timing of our audit tests and establish the degree of reliance that we can place on selected controls. An audit of the Financial Statements is not designed to determine whether internal controls were adequate for management's purposes or to provide assurance on the design or operational effectiveness of internal control over financial reporting. The extent to which deficiencies in internal control may be identified through an audit of Financial Statements is influenced by a variety of factors including our assessment of materiality, our preliminary assessment of the risks of material misstatement, our audit approach, and the nature, timing and extent of the auditing procedures that we conduct. Accordingly, we gain only a limited understanding of controls as a result of the procedures that we conduct during an audit of Financial Statements. We will inform the Committee and management of any significant deficiencies that are identified in the course of conducting the audits. Subst.ant:ive audit proGHdures Our substantive audit procedures consist of a tailored combination of analytical procedures and detailed tests of transactions and balances. These procedures take into account the results of our controls tests and are designed to enable us to obtain reasonable assurance that the Financial Statements are free from material misstatements. To obtain this assurance, misstatements that we identify while performing substantive auditing procedures will be considered in relation to the Financial Statements as a whole. Any misstatements that we identify, other than those that are clearly trivial (the threshold has been set at 5% of materiality), will be reported to management and the Committee. In accordance with Canadian GAAS, we will request that misstatements be corrected. © Deloitte LLP and affiliated enli!les. The Corporation of the City of Pickering-2015 Audit service plan Deloitte enjoys a solid reputation for our commitment to quality. Key factors supporting that reputation include: • A strong tone at the top • A comprehensive ethics and compliance program • An uncompromising approach to quality in client service • Communication of and adherence to professional standards and client service principles • A mature client feedback program • A multifaceted approach to monitoring independence • A robust technical consultation approach • National office consultation on areas of high risk or that require significant judgment • Technical training for our professionals • An annual internal inspection process for audit engagements • Continuous improvement based on lessons learned and client feedback. 11 _. -.J Use of the worl( of specialists The Deloitte audits are distinguished by the use of a broad range of industry and functional specialists who are integral to the audit team and carry a deeper understanding of specific topics. These specialists augment the core engagement audit team in understanding business processes and related risks, and help the audit engagement team apply an appropriate level of professional skepticism to challenge significant management assumptions. For the 2015 audits, we will use Deloitte computer assurance specialists to assist us in performing our audit procedures to test the general computer controls, as well as the conversion of the property tax system to TXM. Our specialists are actively involved in the planning and risk assessment process, and will be available to the audit team and the City's management year-round to discuss ongoing risk assessments, industry developments and other matters of interest. 4. Reporting and assessing performance Perform post-engagement activities We will analyze the results of the audit procedures performed throughout the year and, prior to rendering our report, we will conclude whether: • The scope of the audits was sufficient to support our opinion, and • The misstatements identified during the audits do not result in the Financial Statements being materially misstated. Independence We have developed important safeguards and procedures to protect our independence and objectivity. If, during the year, we identify a breach of independence, we will communicate it to you in writing. Our communication will describe the significance of the breach, including its nature and duration, the action taken or proposed to be taken, and our conclusion as to whether or not the action will satisfactorily address the consequences of the breach and have any impact on our ability to serve as independent auditor to the City. We continue to be independent of the City and we will reconfirm our independence, in writing, to the Committee as part of our year-end communication document. Complete engagement reporting After the satisfactory completion of appropriate audit procedures, we will provide our Independent auditor's reports on the City's, Library Board's and the Trust Fund's Financial Statements. We also provide reports to the Committee to assist you in fulfilling your responsibilities as required by applicable auditing standards. Appendix 2 summarizes the required communications between Deloitte and the Committee. Deloitte's client service principles include providing management and the Committee with insights into the condition of the business and offering meaningful suggestions for improvement that come to our attention during the audit. We will report these insights and suggestions to the appropriate members of management and/or the Committee for their consideration. To enable us to determine how well we have achieved our client service objectives, including an assessment of the quality of our audit engagement, we actively solicit feedback from our clients. This feedback will be obtained either through meetings with members of the Committee and management or their completion of questionnaires. © Deloitte LLP and affiliated entities. The Corporation of the City of Pickering-2015 Audit service plan 12 ...... co Your feedback enhances our understanding of your expectations of us through your evaluation of our performance. The information you provide helps us refine our client service objectives to ensure that we remain focused, responsive and proactive in meeting your needs while fulfilling our professional responsibilities. 5. Leveraging technology Our audit approach utilizes fully automated, paperless audit software where information and supporting schedules are prepared and exchanged electronically. Our audit software facilitates leveraging what the City already prepares as part of account analysis and financial closings and allows us to share files and work papers with our engagement team members. We use other web-based connectivity tools and file interrogation software to quickly and comprehensively analyze data. Our audit software supports the fulllifecycle of an audit engagement. The proprietary software we use is globally connected and allows for real-time tracking, ultimately providing better status reporting to our clients. Our software leverages industry guidance and knowledge so that we tailor our approach in a meaningful way to reflect the nuances of our clients' businesses. Our ability to customize our software to each client's specific situation enables us to have more engaging business conversations. In addition, our software allows us to track findings and observations noted throughout the course of our audits, enabling us to provide our clients with more meaningful insights and discuss any issues as they arise with fewer surprises. The tools described in the following table help us determine our audit scope, prepare consistent audit work papers and files, conduct analytical procedures, select data for testing, accumulate audit results, and monitor progress to provide for the timely completion of tasks. In addition, we intend to make full use of the City's own technologies to gain further efficiencies. Engagement Management System Deloitte Technical Library Deloitte OnLine Audit analytics Deloitte's audit software, incorporating audit-specific templates, reference materials, support documents, and management insights A comprehensive online compilation of accounting and financial disclosure literature that allows Deloitte to research specific accounting issues and functions through access to authoritative literature from pertinent regulatory bodies, as well as our own interpretations and guidance A secure, interactive knowledge-sharing and project collaboration platform for our engagement teams and clients Rapid, effective and secure electronic transfer of information among the audit team members The extensive accounting and reporting guidance helps support the quick and efficient research of complex accounting matters Allows information, leading practices, and ideas to be disseminated; supports efficient access, interactive productivity, and communication Traditional audit procedures depend on sampling large populations and many manual testing procedures. Embedding audit analytics in our Audit strategy provides more · insights into process improvements and data integrity as well as potentially identifying insights into the data that could not be gathered through traditional sampling methods. We can leverage audit analytics in our audits which will bring greater coverage and more precise focus on the most risky transactions by selecting all or a large part of the data, and profiling that data into risk categories, and testing higher risk areas. © Deloitte LLP and affiliated entities. The Corporation of the City of Pickertng-2015 Audit service plan 13 ........ c.o Appendix 2 -Communication requirements 1. Our responsibilities under GAAS, including forming and expressing an opinion on the Financial Statements 2. An overview of the overall audit strategy, addressing: a) Timing of the audits b) Significant risks, including fraud risks c) Nature and extent of specialized skill or knowledge needed to perform the planned audit procedures related to significant risk, and d) Names, locations, and planned responsibilities of other independent public accounting firms or others that perform audit procedures in the audits. 3. Significant transactions outside of the normal course of business, including related party transactions 4. Fraud or possible fraud identified through the audit process 5. Significant accounting policies, practices, unusual transactions, and our related conclusions 6. Alternative treatments for accounting policies and practices that have been discussed with management during the current audit period 7. Matters related to going concern 8. Management judgments and accounting estimates 9. Significant difficulties, if any, encountered during the audits 10. Material written communications between management and us, including management representation letters 11. Other matters that are significant to the oversight of the financial reporting process 12. Modifications to our Independent Auditor's Reports 13. Our views of significant accounting or auditing matters for which management consulted with other accountants and about which we have concerns © Oeloltte LLP and affiliated entities. The Corporation of the City of Pickering-2015 Audit service plan CAS1 260.14 CAS 260.15 CAS 260 App. 2, CAS 550.27 CAS 240.40-.42 CAS 260.16 a. CAS 260.16 a. CAS 570.23 CAS 260.16 a. CAS 260.16 b. CAS 260.16 c. CAS 260.16d. CAS 260.A18 CAS 260.A19 14 N 0 14. Significant matters discussed with management 15.111egal or possible illegal acts that come to our attention 16. Significant deficiencies in internal control, if any, identified by us in the conduct of the audit of the Financial Statements 17. Uncorrected misstatements and disclosure items 1 CAS: Canadian Auditing Standards-CAS are issued by the Auditing and Assurance Standards Board of CPA Canada © Deloltle LLP and affiliated entities. The Corporation of the City of Pickering-2015 Audit service plan CAS 260.A.19 . CAS 250.23 CAS 265 CAS 450.12-13 15 I'V ...... Appendix 3 -Financial reporting update The following public sector accounting standards are set to be effective for fiscal years after December 31, 2015: Title Description Effective Date Section PS 3420 -Inter-This Section establishes standards on how to account for and report transactions This Section applies to fiscal years beginning on or after April 1, 2017. entity transactions between public sector entities that comprise a government's reporting entity from Earlier adoption is permitted. both a provider and recipient perspective. Section PS 2200 -This Section defines a related party and establishes disclosures required for This Section applies to fiscal years beginning on or after April 1, 2017. Related party disclosures related party transactions. Earlier adoption is permitted. Section PS 3210-Assets This Section provides guidance for applying the definition of assets and Fiscal years beginning on or after April1, 2017. Earlier adoption is establishes general disclosure standards for assets; but does not include permitted. standards for recognition and disclosure of specific types of assets, which are dealt with in other Handbook Sections. Section PS 3380 -This Section defines and establishes disclosure standards on contractual rights; Fiscal years beginning on or after April 1, 2017. Earlier adoption is Contractual rights but does not include disclosure. standards for specific types of contractual rights; permitted. and does not include those contractual rights to exchange one asset for another where revenue does not arise. Section PS 3320 -This Section defines and establishes disclosure standards on contingent assets; This Section applies to fiscal years beginning on or after April 1, 2017. Continuent assets but does not include disclosure standards for specific types of contingent assets. Earlier adoption is permitted. Section PS 3430 -This Section establishes standards on how to account for and report Restructuring transactions occurring in fiscal years beginning on or after Restructuring restructuring transactions by both transferors and recipients of assets and/or April 1, 2018. Earlier adoption is permitted. transactions liabilities, toqether with related program or operatinq responsibilities. Section PS 3450 -This Section establishes standards on how to account for and report all types of This section is effective for: (i) Government organizations -fiscal years Financial instruments financial instruments including derivatives. beginning on or after April1, 2012; and (ii) Governments-fiscal years beginning on or after April 1, 2019. Earlier adoption is permitted. Section PS 1201 -This Section establishes general reporting principles and standards for the It is effective for (i) government organizations for fiscal years beginning Financial statement disclosure of information in government financial statements. on or after April1, 2012; and (ii) governments for fiscal years beginning presentation on or after April 1, 2019. Earlier adoption is permitted. © Oeloitte LLP and affiliated entities. The Corporation of the City of Plcke!ing-2015 Audit service plan 1Ei 22 ATTACHMENT#~ TO REPORT#.£LtL;t.L{-IS~ eloi e~- October 22, 2015 Private and confidential Mr. Tony Prevedel Chief Administrative Officer The Corporation of the City of Pickering 1 The Esplanade Pickering ON L 1 V 6K7 Mr. Stan Karwowski Division Head, Finance and Treasurer The Corporation of the City of Pickering 1 The Esplanade Pickering ON Ll V 6K7 Dear Mr. Prevedel and Mr. Karwowski: Deloitte LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 6L7 Canada Tel: 416-601-6150 Fax: 416-601-6610 www .deloitte.ca Deloitte LLP ("Deloitte" or "we" or "us") is pleased to serve as your auditors for the year ending December 31, 2015. Ms. Jesty will be responsible for the services that we perform for the Corporation of the City of Pickering (the "City"). She will, as considered necessary, call upon other individuals with specialized knowledge, either in this office or elsewhere in our firm to assist in the performance of our services. In addition to the fmancial statement audit we are engaged to provide under this engagement letter, we would also be pleased to assist the City on issues as they arise throughout the year. Hence, we hope that you will call Ms. Jesty whenever you believe Deloitte can be of assistance. We will perform this engagement subject to the terms and conditions set forth herein and in the accompanying appendices. The objective and scope of the audit You have requested that we audit the financial statements of the City (the "Financial Statements"), which comprise the statement of financial position as at December 31, 2015, and the statement of operations, changes in net financial assets and cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information. In addition, we will perform a fmancial statement audit of the City of Pickering Public Library Board and of the City of Pickering Trust Funds. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter. Our audit will be conducted with the objective of our expressing an opinion on the Financial Statements. 23 24 The Corporation of the City of Pickering October 22, 2015 Page2 Appendix A provides further information about the objective and scope of the audit. The responsibilities of the auditor We will conduct our audit in accordance with Canadian generally accepted auditing standards ("Canadian GAAS"). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Financial Statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement ofthe fmancial statements, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Because of the inherent limitations of an audit, together with the inherent limitations of internal control, there is an unavoidable risk that some material misstatements may not be detected, even though the audit is properly planned and performed in accordance with Canadian GAAS. In making our risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the Financial Statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. However, we will communicate to you in writing concerning any significant deficiencies in internal control relevant to the audit of the Financial Statements that we have identified during the audit. The audit of the Financial Statements by Deloitte does not relieve management or the Executive Committee of their respective responsibilities. Appendix A provides more information about Deloitte's responsibilities in respect of the audit. The responsibilities of management and identification of reporting framework Our audit will be conducted on the basis that management, under the oversight of the Executive Committee, acknowledge and understand that they have responsibility: • For the preparation and fair presentation of the Financial Statements in accordance with Canadian public sector accounting standards ("PSAS"); • For such internal control as management determines is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error; and • To provide us with: o Access to all information of which management is aware that is relevant to the preparation of the Financial Statements such as records, documentation and other matters; o Additional information that we may request from management for the purpose of the audit; and o Unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence. As part of our audit process, we will request from management written confirmation concerning representations made to us in connection with the audit. The Corporation of the City ofPickering October 22,2015 Page 3 We look forward to full cooperation from your staff during our audit. Management's responsibilities in connection with this engagement are further described in Appendix B. Executive Committee' responsibilities and auditor communications As auditors of the City, we report directly to the Executive Committee as it is directly responsible for the oversight of our work. We acknowledge that the Executive Committee is also responsible for recommending our appointment and compensation. The Executive Committee is also responsible for reviewing and approving the City's hiring policies regarding current and former partners and employees of Deloitte LLP and Deloitte Touche Tohmatsu Limited, including related member firms and affiliates. In accordance with Canadian GAAS, we are required to communicate with the Exeqrtive Committee about various matters in connection with our audit. The Executive Committee' responsibilities and our communications with the Executive Committee are described in Appendix C. Subscription services Deloitte makes available to clients and non-clients, various educational, informational and other tools in the form of, among other things, newsletters, webcasts, podcasts, websites, database subscriptions, checklists, research reports, surveys and similar or related tools and services ("Subscriptions"). Inclusion of Deloitte reports in documents and public oral statements or references to Deloitte in other documents and on electronic sites If the City intends to publish or otherwise reproduce in any document our report on the City's Financial Statements, or otherwise make reference to Deloitte in a document that contains other information in addition to the audited Financial Statements (e.g., in a periodic filing with a regulator), thereby associating Deloitte with such document, the City agrees that its management will provide Deloitte with a draft of the document to read and obtain our written consent for the inclusion or incorporation by reference of our report, or the reference to Deloitte, in such document before the document is printed and distributed. No other form of document is to be considered to signifY our consent. The inclusion or incorporation by reference of our report in any such document would constitute the re-issuance of our report. Management agrees to provide adequate notice of the preparation of any such public documents. The City also agrees that it will notifY us and obtain our written approval prior to including our report or financial statements with which we are associated on an electronic site. Further, it is agreed that in any electronic distribution, for example on the City's website, management is solely responsible for the accurate and complete reproduction of our report and the subject matter on which we reported. This engagement letter, and our agreement to perform the services described in this engagement letter, does not constitute our consent to the use of our report in, or our agreement to be associated with any such documents published or reproduced by or on behalf of the City. Any request by the City to re-issue our report, to consent to its inclusion or incorporation by reference in an offering or other document, or to agree to its inclusion on an electronic site, will be considered based on the facts and circumstances existing at the time of such request. The estimated fees outlined herein do not include any services that would need to be performed in connection with any such required services or modifications needed to our report for summarized fmancial statements. Fees for such services (and their scope) would be subject to our mutual agreement at such time and would be described in a separate engagement letter. 25 26 The Corporation ofthe City of Pickering October 22, 2015 Page4 Reporting In accordance with Canadian GAAS, we expect to issue a report at the completion of our audit in the form shown in Appendix D. The form and content of our report may need to be amended in the light of our audit findings. Our ability to express an opinion and the wording of our opinion will, of course, be dependent on the facts and circumstances at the date of our report. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or decline to issue a report as a result of this engagement. If we are unable to complete our audit or if our auditor's report requires modification, the reasons therefor will be discussed with the Executive Committee and the City's management. Fees We estimate that our base fees for this audit will be as follows, plus applicable taxes (such as Harmonized Sales Tax): The Corporation of the City of Pickering (including Trust Funds) base fee Pickering Public Library Board $64,250 $5,750 Additional audit procedures related to the implementation of new accounting standards The City is adopting the following new accounting standard effective for the financial statements for the year endingDecember 31,2015: PS 3260, Liability for Contaminated Sites. Additional procedures will need to be performed to assess compliance with the new accounting standard, to obtain assurance over the quantification of any transition adjustments and to assess the appropriateness of the revised financial statement disclosures. These changes may result in additional audit work and therefore additional one-time fees. We expect fees for this additional work to be in the range of $2,500 - $3,500. Additional audit procedures due to implementation of new property tax system TXM We are required to test the conversion of data related to this new system as well as the controls related to the conversion. The new system also resulted in new interfaces with the general ledger and new access controls. Additional one-time fees related to this implementation of the new system are expected to be $7,500. Appendix E provides an estimated timetable for the services included in this engagement letter and the responsibilities ofboth Deloitte and the City's management with respect to the successful completion of the engagement. Deloitte will monitor all work and assess fees (time and expenses) as they are incurred throughout the engagement. If circumstances arise, such as those described in Appendix F, and as a result the fees for any of the services outlined are likely to be greater than indicated due to the need for additional work, we will contact you to discuss the reason and seek your approval for this additional work. The Corporation of the City of Pickering October 22,2015 PageS Other matters This engagement letter, including the appendices A through G attached hereto and made a part hereof, constitutes the entire agreement between the parties with respect to this engagement and supersedes all . other prior and contemporaneous agreements or understandings between the parties, whether written or oral, relating to this engagement. This engagement letter will continue in force for subsequent audits unless amended by the mutual consent of ourselves and the City. Please sign and return the attached copy of this letter to indicate your acknowledgement of, and agreement with, the arrangements for our audit of the Financial Statements including our respective responsibilities. Yours truly, Chartered Professional Accountants Licensed Public Accountants Enclosure The services and terms set forth in and incorporated into this contract are accepted and agreed to by The Corporation of the City of Pickering: Signature Signature Title Title Date Date 27 28 Appendix A The objective and scope of a financial statement audit and the responsibilities of the auditor The Corporation of the City ofPickering December 31, 2015 The objective and scope of a financial statement audit We will plan and perform the audit to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error. The Financial Statements subject to audit are those of the City, prepared by management, with oversight from the Executive Committee. The audit will enable us to express an opinion on whether the Financial Statements are prepared, in all material respects, in accordance with PSAS. The audit also includes evaluating the appropriateness of accounting policies and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the Financial Statements. Our report on the Financial Statements and communications required by Canadian GAAS will be in accordance with our fmdings. It is important to recognize that there are inherent limitations of an audit, where most of the audit evidence obtained is of a persuasive, rather than a conclusive nature. These limitations arise from the nature of financial reporting, the nature of audit procedures and the need for the audit to be conducted within a reasonable period of time and at a reasonable cost. . . Financial reporting involves judgment by management in applying the requirements of PSAS to the facts and circumstances of the City. Many fmancial statement items will involve a degree of uncertainty, and there may be a range of acceptable interpretations or judgments that may be made. The audit procedures we perform will be selected based on our judgment, including the assessment of the risks of material misstatement of the Financial Statements, whether due to fraud or error. Because of the nature of fraud, including attempts at concealment and forgery, an audit designed and executed in accordance with Canadian GAAS may not detect a material fraud. The performance of the audit within a reasonable period of time and at a reasonable cost requires us to· plan the audit so that it will be performed in an effective manner, with audit effort directed to areas most expected to contain risks of material misstatement, whether due to fraud or error, and using selective testing and other means of examining populations for misstatements and drawing conclusions thereon. Internal control over financial reporting An independent audit conducted by Deloitte in accordance with Canadian GAAS is not a substitute for the maintenance of internal control necessary for the preparation of financial statements by management. Management's acknowledgment of its responsibility for the maintenance of internal control necessary for the preparation of fmancial statements does not imply that Deloitte will find that the internal control maintained by management has achieved its purpose or will be free of deficiencies. We obtain an understanding of internal control relevant to the audit however, not all controls are relevant to every audit. We evaluate the design of controls relevant to the audit and determine whether they have been implemented. We are not, however, required to determine whether relevant controls are operating effectively. Although it is not required by generally accepted auditing standards, we may decide that for a particular engagement, it makes sense to rely on the effective operation of some controls in determining the substantive procedures we will perform. In this case, 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. Accordingly, while generally accepted auditing standards require us to report to the Executive Committee any significant deficiencies that have come to our attention, we may not be aware of all significant deficiencies in internal control that do, in fact, exist. Appendix B Management's responsibilities The Corporation of the City of Pickering December 31,2015 Financial statements and the effectiveness of internal control over financial reporting The City's internal control, including its accounting books and records or accounting systems, will reflect the needs of management, the complexity of its businesses, the nature of its risks and relevant laws or regulation. Management must determine what internal control is required, including how it is designed, implemented and maintained to achieve the City's objectives. Internal control, no matter how effective, can provide the City with only reasonable assurance about achieving its financial reporting objectives due to the inherent iimitations of internal controL The preparation and overall accuracy of the Financial Statements and their fair presentation in accordance with PSAS together with all required disclosures concerning internal control over financial reporting, is the responsibility of the City's management. Among other things, management has the responsibility for: 1. Establishing and maintaining effective internal control over financial reporting necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and informing Deloitte of deficiencies identified in the design or operation of internal control over financial reporting; 2. Informing Deloitte of any changes in the City's internal control over fmancial reporting that occurred during the year that have materially affected, or are reasonably likely to materially affect, the City's internal control over fmancial reporting; 3. Identifying and ensuring that the City complies with the laws and regulations applicable to its activities and informing us of any known material violations of such laws or regulations; 4. Adjusting the Financial Statements to correct material misstatements; 5. Safeguarding assets; 6. Providing to us all information of which management is aware that is relevant to the preparation of the Financial Statements including, but not limited to, all fmancial records and related data including information on the recognition, measurement and disclosure of specific items, and copies of all minutes of meetings of directors and committees of directors; 7. Providing additional information that we may request from management for the purpose of the audit; 8. Providing us with unrestricted access to persons within the City from whom we determine it necessary to obtain evidence; and 9. Informing Deloitte of facts that may affect the Financial Statements, of which management may become aware during the period from the date of the auditor's report to the date the Financial Statements are issued. Representation letter We will make specific inquiries of the City's management about the representations embodied in the Financial Statements and internal control over fmancial reporting. As part of our audit procedures, we will request that management provide us with a representation letter acknowledging management's responsibility for the preparation of the Financial Statements in accordance with PSAS and that the Financial Statements are fairly presented in accordance therewith. · We will ask management to affirm their belief that the effects of any uncorrected financial statement misstatements aggregated by·us during the current audit engagement and pertaining to all the periods presented are immaterial, both individually and in the aggregate, to the Financial Statements taken as a whole and that management has provided us with all relevant information and access as agreed in this engagement letter and has recorded and reflected all transactions in the Financial Statements. 29 30 The Corporation of the City ofPickering December 31,2015 AppendixB PageB-2 We will require certain written representations from management in accordance with Canadian GAAS and will request additional representations to support other audit evidence relevant to the Financial Statements or one or more specific assertions therein. Those written representations are to be provided in the form of a representation letter addressed to Deloitte, as near as practicable to, but not after, the date of the auditor's report on the Financial Statements. Such representations will be for all fmancial statements and periods referred to in the audit report. · The responses to inquiries and related written representations of management required by Canadian GAAS are part of the evidential matter that we will rely on as auditors in forming our opinion on the City's Financial Statements. Independence matters For purposes of the following two paragraphs, "Deloitte" shall mean Deloitte LLP and Deloitte Touche Tohmatsu Limited, including related member firms and affiliates. Independence matters as a result of restrictions on providing certain services In connection with our engagement, Deloitte, management, and the Executive Committee will assume certain roles and responsibilities in an effort to assist Deloitte in maintaining independence and ensuring compliance with Canadian independence ru1es. Deloitte will communicate to its partners and employees that the City is an attest client. Management of the City will ensure that the City, together with its subsidiaries and other entities (including variable interest entities) that comprise the City for purposes of the Financial Statements, has poiicies and procedures in place for the purpose of ensuring that neither the City nor any such subsidiary or other entity will act to engage Deloitte or accept from Deloitte any service that under Canadian independence ru1es or other applicable ru1es would impair Deloitte's independence. All potential services are to be discussed with Ms. Jesty. Independence matters relating to hiring Deloitte must assess threats to independence created when a former Deloitte partner or member of the engagement team is employed by management. In order to assist Deloitte in maintaining independence, management should notifY Ms. Jesty where substantive employment conversations have been had with a former or current Deloitte partner or engagement team member. Fraud and error Management is responsible for: 1. Designing and implementing programs and controls to prevent and detect fraud and error; 2. Informing us about all known or suspected fraud affecting the City involving (a) management, (b) employees who have significant roles in internal control, and (c) others where the fraud could have a material effect on the Financial Statements; 3. Informing us of its knowledge of any allegations of fraud or suspected fraud affecting the City received in communications from employees, former employees, or others; 4. Informing us of any information it might have regarding any concerns or allegations of potential errors in the selection of accounting policies or the recording of transactions affecting the City that have been communicated to it by employees, former employees, or others, whether written or oral; 5. Informing us of its assessment of the risk that the Financial Statements may be materially misstated as a result of fraud; and The Corporation of the City of Pickering December 31,2015 AppendixB PageB-3 6. Communicating its belief that the effects of any uncorrected financial statement misstatements aggregated during the audit are immaterial, both individually and in the aggregate, to the Financial Statements taken as a whole. Related Parties The City agrees that it will provide us with the identity of the City's related parties, including changes from the previous period, the nature of relationships between the City and these related parties and whether the City entered into any transactions with these related parties during the period and if so, the type of purpose of transactions. 31 32 Appendix C Executive Committee responsibilities and auditor communications The Corporation of the City ofPickering December 31,2015 Executive Committee responsibilities The Executive Committee is responsible for the oversight of the fmancial reporting process, including management's preparation of the Financial Statements and monitoring of the City's internal control related to fmancial reporting and oversight of our work. Communications with the Executive Committee Canadian GAAS require that we communicate with the Executive Committee about a number of matters that are relevant to the financial reporting process. Planned scope and timing of the audit Our audit plan will be separately communicated to you at a later date, providing an overview of the planned scope and timing of the audit. Significant findings from the audit We will communicate our views about significant qualitative aspects of the City's accounting practices, including accounting policies, accounting estimates and financial statement disclosures. Should the need arise, we will communicate to the Executive Committee why we would consider a significant accounting practice that may be acceptable under PSAS, not to be the most appropriate to the particular circumstances of the City. We will communicate, in writing, any significant deficiencies in internal control that we identifY on the basis of the audit work performed. The purpose of our audit is to express an opirllon on the Financial Statements. While the audit will include consideration of internal control relevant to the preparation of the Financial Statements in order to design audit procedures appropriate in the circumstances, it was not performed to express an opinion on the effectiveness of internal control. In addition, we will communicate: • Any significant matters arising from the audit in connection with the City's related parties; • any events or conditions identified that may cast doubt on the City's ability to continue as a going concern; • any significant difficulties encountered during the audit; • any significant matters arising from the audit that were discussed or subject to correspondence with management; • written representations we are requesting; • any material uncorrected inconsistencies or misstatements in fact we identifY from reading the financial and non-financial information that are included in a document containing audited financial statements and our auditor's report; and • any other matters that in our professional judgment are significant to the oversight of the financial reporting process. The Corporation of the City of Pickering December 31, 2015 AppendixC Page C-2 Independence communications In accordance with professional standards, we will disclose to the Executive Committee, in writing, all relationships between Deloitte and the City and its related entities, that in our professional judgment may reasonably be thought to bear on our independence and confirm to the Executive Committee in such letter whether, in our professional judgment, we are independent of the City within the meaning of the rules of professional conduct/code of ethics of our profession. For purposes of this paragraph, "Deloitte" shall mean Deloitte LLP and Deloitte Touche Tohmatsu Limited, including related member firms and affiliates. Fraud, error and illegal acts If items of the following nature come to our attention, and in our judgment need to be reported to those charged with governance, we will report them directly to the Executive Committee: 1. Any fraud that involves management; 2. Any fraud involving employees who have significant roles in internal control; 3. Any fraud of which we become aware that has resulted or could result in a material misstatement of the Financial Statements; 4. Any other matters related to fraud, which in our judgment, are relevant to the responsibilities of the Executive Committee; 5. Instances of identified or suspected non-compliance with laws and regulations, other than when the matters are clearly inconsequential; 6. Individual uncorrected misstatements identified by us during the audit that were determined by management to be immaterial, both individually and in the aggregate, to the Financial Statements taken as a whole; 7. Uncorrected misstatements related to prior periods in the relevant classes of transactions, account balances or disclosures and the financial statements taken as a whole; 8. Questions regarding the honesty and integrity of management; 9. Matters that may cause future financial statements to be materially misstated; and 10. Significant misstatements resulting from error that were corrected by management. We will also be making inquiries of the Executive Committee of any actual, suspected or alleged fraud affecting the City and whether the City is in compliance with laws and regulations that may have a material effect on the Financial Statements. We will inform the appropriate level of management of the City and determine that the Executive Committee is adequately informed with respect to illegal acts that have been detected or have otherwise come to our attention in the course of our audit, unless the illegal acts are clearly inconsequential. The matters communicated will be those that we identify during the course of our audit. Our audit would not identify all matters that may be of interest to management or the Executive Committee in discharging its responsibilities. Communication with the appropriate level of authority in the City's management and with those charged with governance will be determined by the type and significance of the matter to be communicated. We will also make inquiries of the Executive Committee as to whether any subsequent events have occurred that may affect the Financial Statements, including matters discussed at meetings of the Executive Committee after December 31,2015. 33 34 Appendix D Expected form of audit report The Corporation of the City ofPickering December 31, 2015 We will provide you with our report on the Financial Statements, which is expected to be in the following form. However, the fmal form will reflect the results of our audit. 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 fmancial statements of the Corporation of the City of Pickering, which comprise the consolidated statement of fmancial position as at December 31, 2015, and the consolidated statements of operations, change in net fmancial assets, and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these consolidated fmartcial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated fmancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated fmancial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. The Corporation of the City of Pickering December 31,2015 AppendixD PageD-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, 2014 and the results of its operations, change in its net financial assets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Chartered Professional Accountants, Licensed Public Accountants [Date] 35 36 Appendix E Coordination of the audit The Corporation o~the City ofPickering December 31,2015 Deloitte and the City will develop and maintain an up-to-date workplan that will govern the specific involvement, activities, work products and schedules of all individuals involved in this engagement, including those in the employ ofDeloitte, the City and third parties, and regardless of whether the individuals have been assigned to the engagement by Deloitte, the City or a third party. Deloitte's responsibilities We will plan the performance of our audit in accordance with the estimated timetable outlined below. We anticipate that we will commence this interim audit during the week of November 23, 2015 and our year-end audit for the 2 weeks beginning March 21,2015. We will advise management of any changes to the timetable. We will communicate to management on a timely basis concerning the status ·of the engagement. Should we anticipate any changes to our proposed fees, the scope of the engagement, the nature of our report or other planned deliverables, we will contact and advise management of the nature of these changes. Management's responsibilities Management will provide all documentation, as requested by Deloitte, in an accurate and timely fashion. Appendix F Circumstances affecting timing and fee estimate The Corporation of the City ofPickering December 31,2015 The fees quoted for the audit are based on certain assumptions. Circumstances may arise during the engagement that may significantly affect the targeted completion dates and our fee estimate. As a result, additional fees may be necessary. Such circumstances include, but are not limited to, the following: Audit facilitation 1. Changes to the timing of the engagement at the City's request. Changes to the timing of the engagement usually require reassignment of personnel used by Deloitte in the performance of services hereunder. However, because it is often difficult to reassign individuals to other engagements, Deloitte may incur significant unanticipated costs. 2. All audit schedules are not (a) provided by the City on the date requested, (b) completed in a format acceptable to Deloitte, (c) mathematically correct, or (d) in agreement with the appropriate City records (e.g., general ledger accounts). Deloitte will provide the City with a separate listing of required schedules, information requests, and the dates such items are needed. 3. Significant ·delays in responding to our requests for information such as reconciling variances or providing requested supporting documentation (e.g., invoices, contracts, and other documents). 4. Deterioration in the quality of the City's accounting records during the current year engagement in comparison with the prior-year engagement. 5. A completed trial balance, referenced to the supporting analyses, schedules and Financial Statements, is not provided timely by the City. 6. Draft Financial Statements with appropriate supporting documentation are not prepared accurately and timely by the City's personnel. 7. Electronic files in an appropriate format and containing the information requested are not provided by the City on the date requested for our use in performing file interrogation. Deloitte will provide the City with a separate listing of the required files and the dates the files are needed. 8. The engagement team, while performing work on the City's premises, is not provided with access to the Internet for purposes of conducting the engagement. Significant issues or changes 1. Significant deficiencies are identified in the City's internal control that result ih the expansion of our audit procedures. 2. A significant level of proposed audit adjustments is identified during our audit. 3. A significant number of drafts of the Financial Statements are submitted for our review or we identifY a significant level of deficiencies in the draft Financial Statements. 4. Significant new issues or changes arise as follows: a New accounting issues. b. Changes in accounting policies or practices from those used in prior years. c. Events or transactions not contemplated in our budgets. d. Changes in the City's financial reporting process or IT systems. e. Changes in the City's accounting personnel, their responsibilities, or their availability. f. Changes in auditing standards. g. Change in the City's use of specialists or the specialists and I or their work product does not 5. The procedures necessary to adopt CPA Canada Public Sector Accounting Handbook, Section PS 3260, and Liability for Contaminated Sites, have not been completed by the City's personnel. 6. Changes in audit scope caused by events that are beyond our control. 37 38 Appendix G General business terms The Corporation of the City of Pickering December 31,2015 The following general business terms (the "Terms") apply to the engagement except as otherwise provided in the specific engagement letter agreement (the "engagement letter") between Deloitte LLP ("Deloitte") and The Corporation of the City of Pickering (the "City") to which these Terms are attached. 1. Timely performance -Deloitte will not be liable for failures or delays in performance that arise from causes beyond Deloitte' s control, including the untimely performance by the City of its obligations as set out in the engagement letter. 2. Right to terminate services -If the City terminates the engagement or requests that Deloitte resign from the engagement prior to its completion, the City will pay for time and expenses incurred by Deloitte up to the termination or resignation date together with reasonable time and expenses incurred to bring the services to a close in a prompt and orderly marmer. Deloitte will not be responsible for any loss, cost or expense resulting from such termination or resignation. Should the City not fulfill its obligations set out herein or in the engagement letter, and in the absence of rectification by the City within thirty (30) days of notification in writing by Deloitte, upon written notification Deloitte may terminate its services immediately and will not be responsible for any loss, cost or expense r~sulting from such early termination. 3. Fees and taxes -Any fee estimates take into account the agreed-upon level of preparation and assistance from City personnel. Deloitte undertakes to advise management of the City on a timely basis should this preparation and assistance not be provided or should any other circumstances arise which cause actual time to exceed that estimate. The City is responsible for the payment of any applicable federal, provincial or other goods and services or sales taxes, or any other taxes or duties, in connection with the services provided by Deloitte. 4. Expenses-ln addition to professional fees, the City will reimbmse Deloitte for its reasonable out-of- pocket expenses including travel, meals and hotels incurred in connection with this engagement. 5. Billing-lnvoices will be rendered periodically as agreed in advance. All invoices shall be due and payable when rendered. lnterest shall be calculated at a simple daily rate of 0.0493% (equivalent to 18% per armum). lnterest shall be charged and payable at this rate on any part of an invoice which remains unpaid from thirty (30) days after the invoice date to the date on which the outstanding invoice is paid. To the extent that as part of the services to be performed by Deloitte as described in the engagement letter, Deloitte personnel are required to perform the services in the United States of America ("U.S. Business"), the City and Deloitte agree to assign performance of the U.S. Business to Deloitte Canada LLP, an affiliate ofDeloitte. All services performed by Deloitte Canada LLP shall be performed under the direction ofDeloitte which shall remain responsible to the City for such services. Deloitte Canada LLP shall invoice the City with respect to the U.S. Business and Deloitte will invoice for services performed in Canada ("Canadian Business"). Payment for U.S. Business and/or Canadian Business can be settled with one payment to Deloitte. 6. Governing law-The engagement will be governed by the laws of the Province where Deloitte's principal office performing the engagement is located and all disputes related to the engagement shall be subject to the exclusive jurisdiction of the courts of such Province. The Corporation of the City of Pickering December 31, 2015 AppendixG Page G-2 7. Working papers-All working papers, files and other internal materials created or produced by Deloitte related to the engagement are the property ofDeloitte. In the event that Deloitte is requested by the City or required by subpoena or other legal or regulatory process to produce its files related to this engagement in proceedings to which Deloitte is not a party, the City will reimburse Deloitte for its professional time and expenses, including legal fees, incurred in dealing with such matters. 8. Privacy-Deloitte and the City acknowledge and agree that, during the course of this engagement, Deloitte may collect personal information about identifiable individuals ("Personal Information"), either from the City or from third parties. Deloitte's services are provided on the basis that the City has obtained any required consents for collection, use and disclosure to us of Personal Information required under applicable privacy legislation. The City and Deloitte agree that Deloitte will collect, use and disclose Personal Information on behalf of the City solely for purposes related to completing this engagement, related engagements, or providing services to the City and Deloitte shall not collect, use and disclose such Personal Information for Deloitte's own behalf or for its own purposes. 9. Third parties-Deloitte's engagement is not planned or conducted in contemplation of or for the purpose of reliance by any third party (other than the City and any party to whom Deloitte' s audit report is addressed) or with respect to any specific transaction. Therefore, items of possible interest to a third party will not be addressed and matters may exist that would be assessed differently by a third party, possibly in connection with a specific transaction. 10. Confidentiality -To the extent that, in connection with this engagement, Deloitte comes into possession of Personal Information or any proprietary or confidential information of the City (collectively, "Confidential Information"), Deloitte will not disclose such information to any third party without the City's consent, except: (a) as may be required or permitted by legal authority, the rules of professional conduct/code of ethics; (b) to Deloitte Entities (as such term is defined below), component auditors and permitted subcontractors; or (c) to the extent that such information shall have otherwise become publicly available. Except as instructed otherwise in writing, each party may assume that the other approves of properly addressed fax, e-mail (including e-mail exchanged via internet media) and voice mail communication of both sensitive and non-sensitive information and other communications concerning this engagement, as well as other means of communication used or accepted by the other. 11. Assignment -Except as provided below in paragraph 12, no party may assign, transfer, or delegate any of its rights or obligations relating to this engagement without the prior written consent of the other parties. 12. Subcontracting-Deloitte may use the services of any of its affiliates or any member firm ofDeloitte Touche Tohmatsu Limited ('DTTL") and its respective subsidiaries and affiliates, including those operating outside Canada ("Deloitte Entities"), component auditors or, with the consent of the City, of any other party. Deloitte remains responsible to the City for services performed by Deloitte Entities under this engagement. Each member firm of DTTL is a separate and independent legal entity operating under the names "Deloitte", "Deloitte & Touche", "Deloitte Touche Tohmatsu" or other related names; and services are provided by member firms or their subsidiaries or affiliates and not by DTTL. 13. Survival of terms -The agreements and undertakings of the City contained in the engagement letter, together with the appendices to the engagement letter including these Terms, will survive the completion or termination of this engagement. 39 40 The Corporation of the City ofPickering December 31, 2015 AppendixG Page G-3 14. Proportionate liability-The City and Deloitte acknowledge where the audit is conducted pursuant to a statute governing the City that contains proportionate liability provisions that apply to an auditor, such as the Canada Business Corporations Act, the terms of the statute shall apply to this engagement. In the event that the City and Deloitte are not subject to such statutory provi,sions regarding proportionate liability, the City agrees that in any action, claim, loss or damage arising out of the engagement, Deloitte's liability will be several and not joint and several and the City may only claim payment from Deloitte ofDeloitte's proportionate share of the total liability based on the degree of fault of Deloitte as finally determined by a court of competent jurisdiction. 15. Client misrepresentation-Deloitte shall not be liable to the City, and the City releases Deloitte, for all liabilities, claims, damages, costs, charges and expenses incurred or suffered by the City related to or in any way associated with the engagement that arise from or are based on any deliberate misstatement or omission in any material information or representation provided by or approved by any member of management of the City, officer ofthe City or member of the E{(.ecutive Committee of the City. 16. Qualifications-Notwithstanding anything herein to the contrary, Deloitte may use the name of the City, refer to this engagement and the performance of the services in marketing, publicity materials and other material, as an indication of its experience, and in internal data systems. From: Paul Bigioni Director, Corporate Services & City Solicitor Report to Executive Committee Report Number: BYL 01-15 Date: November 9, 2015 Subject: yth Annual Toys for Tickets and Food for Fines 2015 File: L-2220-004-15 Recommendation: 1. That parking tickets issued between December 1 through 18, 2015 be eligible for the Toys for Tickets/Food for Fines program; and 2. That the Toys for Tickets/Food for Fines program be implemented from December 1 through December 18, 2015. Executive Summary: The Toys for Tickets/Food for Fines program accepts toys or groceries in lieu of payment for parking tickets. Toy orfood donations must be dropped off to City Hall, and a receipt must be presented to confirm that the value of th.e donation equals or exceeds the fine. Tickets for parking in a Disabled Parking Space are not eligible for the program. This program promotes community engagement and supports families in need. Financial Implications: The lost revenue associated with the Toys for Tickets/Food for Fines in 2014 was $1 ,288.00. Similar lost revenue is anticipated for 2015. Discussion: The first Toys for Tickets/Food for Fines program was offered by the City of Pickering in 2009. Since that time, it has been a tremendous success, supporting families in need and promoting the spirit of the holiday season. The program has received extensive media coverage at both the national and local level, as well as · through social media. This year's program will continue to benefit families in need by sharing donations with the Durham Regional Police Service Food and Toy Drive, and the Pickering Fire Services Food and Toy Drive. 41 42 BYL 01-15 November 9, 2015 Subject: 7th Annual Toys for Tickets and Food for Fines 2015 Page 2 Prepared By: .~'-{~· Kimberly Thompson Manager, Municipal Law Enforcement Services KT:ks Recommended for the consideration of Pickering City Council cf?J CJd: ;4r Zo/5 Tony Prevedel, P.Eng. Chief Administrative Officer CORP0227-07/01 revised ' . rate Services & City From: Paul Bigioni Director, Corporate Services & City Solicitor Report to Executive Committee Report Number: CLK 05-15 Date: November 9, 2015 Subject: 2016 Standing Committee and Council Meeting Schedule Recommendation: That the 2016 Standing Committee and Council Meeting Schedule included as Attachment 1 to this report, be approved. Executive Summary: In accordance with the Municipal Act 2001, every municipality and local board shall pass a procedure by-law for governing the calling, place and proceedings of meetings. The By-law provides for the notification of the meetings of Council. Financial Implications: There are no financial implications. Discussion: The City of Pickering Procedural By-law provides for governing the calling, place and proceedings of meetings. In accordance with the intent of the Municipal Act, of open, transparent and accountable government, the 2016 meeting schedule as required by the Procedural By-law 7212/12 is presented in order for public notification to commence. Attachments: 1. 2016 Standing Committee and Council Meeting Schedule 43 44 Report CLK 05-15 November 9, 2015 Subject: 2016 Standing Committee and Council Meeting Schedule Page 2 Prepared By: Debbie Shields City Clerk DS:Ir Recommended for the consideration of Pickering City Council Paul Bi ~ Ocf .5, Wf5> Tony Prevedel, P.Eng. Chief Administrative Officer CORP0227-07/01 revised ndorsed By: \[) '::1:.-;- .J I.t) uo I e >4, ~ ... .j i ... January S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 . 19 20 21 22 23 24 25 26 27 28 29 30 31 May S M T W Th F . 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 [ill 17 ·18 19 20 21 22 23 24 25 26 27 28 29 30 31 September S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 IIi} 20 21 22 23 24 25 26. 27 28 29 30 Family Day -February 15 Easter Monday -March 28 Victoria Day -May 23 Draft 2016 Committee & Council meeting Schedule February S M T W Th F S 1 2 3 7 8 9 10 14 15 .17 21 22 23 24 28 29 4 5 6 11 12 13 18 19 20 25 26 27 June S M TWThF. S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 -28 29 30 October S M T W Th F S 1 2 3 4 5 6 7 8 9 . 10 11 12 13 14 15 16 • 18 19 20 21 22 23 24 25 26 27 28 29 30 31 March S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .. 30 31 July S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 November S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 • 22 23 24 25 26 27 28 29 30 U) April q- S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 • 19 20 21 22 23 24 25 26 27 28 29 30 August S M T W Th F 5 1 2 3 4 5 6 7 8 9 10 11 l2 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 December S M T W Th F S 1-2 3 4 5 6 7 8 9 10 11 • 13 14 15. 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Committee Meetings Budget Meeting March Break-March 14-18 Civic Awards -May 30 Labour Day-September 5 Thanksgiving-October 10 46 ·From: Marisa Carpino Director, Culture & Recreation Report to Executive Committee Report Number: CR 18-15 Date: November 9, 2015 Subject: Consulting Services for Building Condition Assessments and Facilities Asset Management System · -Request for Proposal No. RFP-2-2015 -File: A-1440 Recommendation: 1. That Proposal No. RFP-2-2015, for Consulting Services for Building Condition Assessments and Facilities Asset Management System, submitted by VFA Canada Corporation in the amount of $275,715.86 (HST included) be accepted; 2. That the total gross project cost of $284,756.00 (HST included), including the amount of the proposal and other associated costs, and the total net project cost of $256,432.00 (net of HST rebate), be approved; 3. That Council authorize the Division Head, Finance & Treasurer to finance Year 1 Implementation and Assessments net project cost of $106,087.00 as follows: a) The sum of $25,000.00 as provided for in the 2015 Current Budget Culture & Recreation Administration be increased to $26,522.00, to be funded from property taxes; b) The sum of $75,000.00 as provided for in the 2015 Current Budget Culture & Recreation Administration be increased to $79,565.00 to be funded by a transfer from the Development Charges Reserve Funds-Growth Studies (DCRF); and 4. That the appropriate City of Pickering officials be authorized to take the necessary action to give effect hereto . . Executive Summary: In June 2014, Council approved report FIN 14-14 that approved the revised agreement between the Association of Municipalities of Ontario (AMO) and the City as it relates to the Federal Gas Tax (FGT) .revenues (the City currently received $2,568,953 in FGT funding). One of the changes in the revised agreement is the focus on asset management. This includes creating comprehensive plans for all tangible capital assets and utilizing these plans to allocate FGT dollars and reporting on the outcomes. The awarding of the consulting contract that includes facilities asset management system will assist the City in meeting its FGT reporting Report CR 18-15 November 9, 2015 Subject: Consulting Services for Building Condition Assessments and Facilities Asset Management System Page 2 requirements. Future Provincial grant funding programs will require the municipality to have a completed asset management plan in order to apply for grant programs. Culture & Recreation Department staff recommended that a Facilities Asset Management System be initiated in 2015, in anticipation of the mandatory obligation by the province to develop an Asset Management Plan for the City's vertical assets and in the absence of building condition assessment reports that are required to more effectively maintain and manage the City's assets. The City allocated $100,000 in the 2015 Current Budget for Consulting and Professional Services to develop and implement a Facilities Asset Management System. This work consists of Building Conditions Assessments of City facilities and the set up and maintenance of a hosted data management system which would be invaluable in identifying the costs of deferred maintenance, life cycle replacements and assisting with the preparation of budgets. To that end, Request for Proposal No. RFP-2-2015 was prepared and advertised on the City's website. The highest scoring proponent, VFA Canada Corporation, in the amount of $275,716.00 (HST included) is recommended for approval. The total gross project cost is estimated to be $284,756.00 and the total net project cost is estimated at $256,432.00 (net of HST rebate). Financial Implications: 1. Pro osal Amount Proposal No. RFP-2-2015 $243,996.34 HST (13%) 31,719.52 Total Gross Proposal Cost 275 715.86 2. Breakdown of Costs b Total Project Cost 2015 2016-2020 Total (Proposal+ Other Costs) Budget Budgets Implementation & Assessments $ 96,252.00 0 $ 96,252.00 Software Maintenance 0 $147,744.00 147,744.00 Total Proposal Amount $ 96,252.00 $147,744.00 $243,996.00 Contingency 8,000.00 0 8,000.00 Total Project Cost $.104,252.00 $147,744.00 $251,996.00 HST (13%) 13,553.00 19,207.00 32,760.00 Total Gross Project Cost $117,805.00 $166,951.00 $284,756.00 HST Rebate (11.24%) (11 ,718.00) (16,606.00) (28,324.00) Total Net Project Cost to City $1 06!087 .00 $150!345.00 $256!432.00 47 48 Report CR 18-15 November 9, 2015 Subject: Consulting Services for Building Condition Assessments and Facilities Asset Management System Page 3 3. Approved Source of Funds 2015 Current Bud et-Culture & Recreation Administration · Approved Code Source of Funds Budget 2711.2392.0000 Additional Funds -Required Property Taxes DCRF Property Taxes DCRF Total Funds I Project Cost under (over) approved funds by $ 25,000.00 75,000.00 0 0 100 000.00 Required $ 25,000.00 75,000.00 $ 1,522.00 4,565.00 106 087.00 ($6,087.00) Software implementation and building assessments for Civic Complex & Central Library, Pickering Recreation Complex and Petticoat Creek Community Centre & Library will commence in 2015 and funding has been provided for in the 2015 Current Budget Culture & Recreation Administration. The estimated cost for these components is slightly over the approved budget of $100,000.00 and will be funded by an increased transfer from the DCRF and property taxes based on the approved funding ratio of 75% and 25% respectively. The proposed amount includes software maintenance fees for five years and these will be included .in the current budget for the respective years commencing in 2016. This contract also includes a fixed rate of $0.2386 per square footage for VFA Canada Corporation to assess additional City facilities over the next 4 to 5 years and would be included in the future year's budgets accordingly. Discussion: The City of Pickering allocated funds in the 2015 Current Budget to establish a Facilities Asset Management System. Like many other municipalities, the City of Pickering has a diverse and aging portfolio of facilities. The current management for these facilities has been achieved without the support of accurate building condition data or any long term, integrated, Facilities Asset Management Plans. The City's management of facilities has largely relied on the experience of staff and an ad hoc budget forecast planning methodology. Although this approach has proved adequate in the past, it will not address the future demands of continuing aging City facilities, planned growth, and the City's commitment to future levels of service. Reliable, consistent, current building condition data and budget modelling is fundamental to a comprehensive and sustainable Facilities Asset Management Plan. As such, the Facilities Asset Management System to be established by VFA.Canada Corporation will support, integrate and manage facilities service goals based on current needs and expected future requirements. More specifically, the Facilities Asset Management System will create an integrated approach to the planning, design, Report CR 18-15 November 9, 2015 Subject: Consulting Services for Building Condition Assessments and Facilities Asset Management System Page 4 contracting, managing, renovating, operating, maintaining, decommissioning and disposing of current and future inventory of City owned building assets. The foundation of the Facilities Asset Management System is to identify and retain · comprehensive information on the condition of each City building. These Building Condition Audits identify all of the existing building deficiencies and life cycle replacements for each individual facility. The data from the Building Condition Assessments will be entered into a third party hosted software system that prioritizes the work, completes accurate costing of all work and provides multiple future and long term capital funding forecasts and modelling. The hosted data system would be accessible from a dashboard interface on City computer terminals to allow staff to pull data and customize reports from the database. The vendor will be responsible for data input. As part of this project, VFA Canada Corporation will complete Building Condition Assessments of three major facilities (Civic Complex & Central Library Branch, Pickering Recreation Complex, and the Petticoat Creek Community Centre & Library). VFA Canada Corporation will also establish and populate the hosted data system with the assessment results while integrating with the tangible capital asset software system. Additional City facilities including Don Beer Arena, Dunbarton Indoor Pool and East Shore Community Centre will be assessed at a rate of $0.2386 cents per square footage totalling approximately $33,500.00 in a future year's budget. Between 2017 and 2018, many of the City's smaller facilities (primarily found in north Pickering) will be audited by City staff. Within this Facilities Asset Management System, VFA Canada Corporation has the obligation to train staff to collect the data from field inspections. It is the intent to have all City facilities audited and reflected in the data system by the end of 2018. Proposal No. RFP-2-2015 for the consulting Services for Building Condition Assessments and Facilities Asset Management System closed on Thursday, April 30, 2015 with five (5) proposals submitted. An evaluation committee, consisting of City staff, evaluated the proposals using criteria outlined in the RFP. The highest scoring proponent was VFA Canada Corporation. VFA Canada Corporation, has submitted a copy of the Health & Safety Policy, the current WSIB Workplace Injury Summary Report and Clearance Certificate, confirmation of Ministry of Labour Health and Safety Awareness Training for every worker and supervisor on this project, proof of compliance with amended Confined Space Entry Regulations (September 30, 2006), along with copies of certification and all are acceptable to the (Acting) Coordinator, Health & Safety. Certificate of Insurance is deemed acceptable to Manager, Budgets & Internal Audit. In conjunction with the foregoing approvals, staff have reviewed the previous work experience of VFA Canada Corporation and the references provided and the proposal is deemed acceptable. 49 50 Report CR 18-15 November 9, 2015 Subject Consulting Services for Building Condition Assessments and Facilities Asset Management System Page 5 Upon careful examination of all proposals and relevant documents received, the Culture & Recreation Department recommends the acceptance of the highest scoring proponent, VFA Canada Cor.poration for RFP-2-2015 in the amount of $275,715.86 (HST included) and that the total net project cost of $256,432.00 be approved. Attachments: 1. Supply & Services Memorandum dated September 18, 2015. 2. Supply & Services Memorandum dated June 19, 2015. 3. . Supply & Services Memorandum dated May 22, 2015. Supervisor, Facilities Operations OJ2~~) Brian J. DuWeld MaTger, Facilities Operations c~.-~\ Vera A~;lgemacher C.P.P., CPPO, CPPB, C.P.M., CMM Ill Manager, Supply & Services BD:mc Approved/Endorsed By: Marisa Carpino Director, Culture & Recreation Stan Karwowski, CPA, CMA, MBA Division Head, Finance & Treasurer Recommended for the consideration of Picke~ .. ·.ty C.ooJ neil () /Xt.IA{/iJl {bf: u; , 20 tS Tony Prevedel, P.Eng. Chief Administrative Officer · \ 0rn ~ ·c P(fTACHIVJENT #_.' _TO REPORT#~~:"' \ <:::.) ~-I ~ Memo To: Marisa Carpino September 18, 2015 Director, Culture & Recreation From: Vera A. Felgemacher · Manager, Supply & Services Copy: Manager, Facilities Operations Supervisor, Facilities Operations Supervisor, Supply & Services Subject: Request For Proposal No. RFP-2-2015 Consulting Services for Building Condition Assessments and Facilities Asset Mgmt. System · -File: F-5300-001 Further to the memo dated'June 19, 2015, two proposals proceeded to Stage Ill evaluation. VFA Canada is the highest scoring proponent in the amount of $234,996.:34 plus HST. To enable the data transfer from the City's current system (CityWide) to VFA's system, an additional cost of $9,000.00 plus HST applies, for a total amount of $243,996.34. 1/ . A budget of $110,000.00 was provided to Supply & Services for this procurement. In accordance with Purchasing Policy Item 06.12, where the compliant quotation or tender · meeting specifications and offering best value to the City is acceptable and the total purchase price is over $125,000, the Manager may approve the award, subject to the approval of the Director, Treasurer, CAO and Council. Do not disclose any information to enquiries during this time. Proponents will be advised of the outcome in due course. If you require further information, please feel free to contact me or a member of Supply & Se ces. attachments CULTURE & RECREAT!pN D!VISjiON RECEIVED I ~~ ,.....)~ I~ FILE NO. I l I ABEY TO I CJFWD C CCJ~"'Y C'"J CJ.t::ULATE MAYOR T-lc· J..''· t':L CAO ! -c~·Er~re- CUL & R::C JfoRP SERVICEs-- Mf"E I IHUMAN~~.CES-- MPE OF:S CEN 1 iiE i J LEGAL FAC OPERATIONS i I OFFICE SUSTAIN L~..!:'.~ SUPERVISORS I I PLAN &DEV 51 To: Marisa Carpino Director, Culture & Recreation From: · Vera A. Felgemacher Manager, Supply & Services Copy: Supervisor, Supply & Services Manager, Facilities Operations Supervisor, Facilities Operations Subject: Request for Proposal No. RFP-2-2015 ·roK.EPORT Memo June 19, 2015 Consulting Services for Building Condition Assessment and Facilities Asset Management System -File: F-5300-001 Further to memorandum dated May 22, 2015, following is an update of the evaluation process: Reference: Item 3.4 Stage II ;... Evaluation of Rated Criteria. $tage II evaluation of rated criteria offive proposals as outlined. inAppendix E-RFP Particulars, ·Part D-Rating Criteria has been completed. ' Reference: Item 3.5 Stage Ill -Evaluation of Pricing. E;valuation of pricing has been -completed. Reference: Item 3.6 Cumulative Score and Selection of Highest Scoring Proponent At the conclusion ofStage Ill, all scores from Stage II and Stage Ill will be added together and the highest ranking proponent will .be selected for negotiations in accordance with Part 4-Terms and Conditions of the RFP process. This has been completed. Two ofthefive proposals met the required scoring threshold for consideration. The highest ranking proponent is VFA Canada Corp, Confirm if you wish us to proceed to ·negotiations withVFA Canada Corp. as set C?Ut in the Terms of ~eference as follows: Reference: Item 4.3.1 Selection of Top-Ranked Proponent The top-ranked proponent, as established under Part 3-Evaluation of Proposals, will receive a written invitation to enter into direct contract negotiations with the City. Reference: Item 4.3.2 Timeframe for Negotiations The City intends to conclude negotiations within thirty (30) days commencing from the date the City invites the top-ranked proponent to enter negotiations. A proponent invited to enter into direct contract negotiations should, therefore, be prepared to provide requested information in a timely ·fashion and to conduct its negotiation·s expeditiously. 52 Reference: Item 4.3.3 Process Rules for Negotiations Any negotiations will be subject to the process rules contained in this Part 4-Terms and Conditions of RFP Process and the Submission Form (Appendix B) and will not constitute a legally binding offer .to enter into a contract on the part of the City or the ·proponent. Negotiations may include requests by the City for supplementary information from the proponent to verify, clarify or supplement the information provided in its proposal or to confirm the conclusions reclhed in the evaluation, and may include requests by the City for improved pricing from the prt\.nent. L.)L VAF / attachments Request for Proposal RFP-2-2015 Consulting Services for Building Condition Assessment and Facilities Asset Management System Page 2 of 2 53 54 0 To: Marisa Carpino May22, 2015 Division Head, Culture & Recreation ·From: Vera A. Felgemacher Manager, Supply & Services Copy: Manager, Facilities Operations Supervisor, Supply & Services $ubject: Request For Proposal No. RFP-2-2015 · Consulting Services for Building Conditi.on Assessment and Facilities Asset Management· System -File: F-5300-001 Terms of Reference for the above project were posted on the City's website. Five companies submitted a proposal. A preliminary review of the submissions has been undertaken. With regard~ to the Stage I Mandatory Requirements, the Request for Proposal document provided proponents five (5) business days to rectify deficiencies in their submission. All five submissions required rectification. The proponents have submitted corrected and missing documents within the time frame permitted, and all submissions may now proceed to Stage II-scoring by the City of the proposals on the basis of the rated criteria· of the items outlined in Appendix E -RFP Particulars, Part D of the document. This compliance checklist is to be used in evaluating each weighted category. Each item is to be reviewed closely by the Evaluation Committee members and scored to reflect each category's relevance and value. · Please refer to Part 3 -Evaluation of Proposals for instructions on how the proposals are to be evaluated by the evaluation committee members. · · Health & Safety and Insurance documentation is currently being reviewed by the Coordinator, Health & Safety and the Manager, Budgets & Internal Audit. A score out of 5 points will be applied to the evaluation form by Supply & Services after the other rated criteria categories have been scored by the evaluation team. Pricing has been evaluated and a score out of 20 points will be applied to the evaluation form by Supply & Services after the other rated criteria categories have been scored by the evaluation team. · Attachments are as follows: 1. Stage II -Evaluation of Rated Criteria; 2. Evaluation Form (to be used by Evaluation Committee Members) 3. Copy of Terms of Reference 4. Copy of the proposals received (hard copies only to be provided) Please co-ordinate an appropriate date and tim~ to arrange a meeting for the evaluation committee. Each member should review the submissions carefully according to the criteria before the meeting time. lfyx require further information, please contaci me or a member of Supply &Services. cJ/'7 j/_ . VAF/sb ~ AttachmePlts RFP-2-2015-Consulting Services for the Consulting Services for Building Condition Assessment and Facilities Asset Management System. Page 2 55 Consultfng Services for Building Condition Assessment and Facilities Asset Management System J RFP-2-2015 Stage II -Evaluation of Rated Criteria Stage II will consist of a scoring on the basis of the Rated Criteria. Subject to the Terms of Reference and Governing Law, the top-ranked proponent as established under the evaluation will be selected to enter into a contract for the provision of the Deliverables. The selected proponent will be expected to . enter into a contract within the timeframe specified in the selection notice. Failure to do so may, among other things; result in the disqualification of the proponent and the selection of another proponent, or th.e cancellation of. the RFP. · The following is an overview of the categories and weighting for the rated criteria of the. RFP. 3.3 Stage I -Mandatory Requirements, Submission and Rectification 3.3.1 Submission and Rectification Date Other than inserting the information requested on the mandatory submission forms set out in the RFP, a Proponent may not make any changes to any of the forms. Proponents submitting··proposals . . that do not meet the mandatory requirements will be provided an opportunity prior to the Rectification Date to rectify any deficiencies. 3.3.2 Submission Form (Appendix B) Each proposal must include a Submission Form (Appendix B) completed and. signed by an authorized representative of the Proponent. 3.3.3 Rate Bid Form (Appendix C) Each Proponent must include this form completed according to the instructions contained in the form as well as those instructions set out below: 56 (a) The Proponent shall pay all taxes, rates, duties, and assessments imposed now or in the future when due to the taxing authority(ies) having jurisdiction over the Proponent charged in respect of the business to be carried on in the leased area, including but not limited to provincial and federal taxes, business and realty taxes to the City (b) rates shall be provided in Canadian funds, inclusive of all applicable duties and taxes except for HST, which should be itemized separately; and (c) rates quoted by the Proponent shall be all-inclusive and shall include all labour and material costs, all travel and carriage costs, all insurance costs, all costs of delivery to the City, all costs of installation and set-up, including any pre-delivery inspection charges, and all other overhead, including any fees or other charges required by law. 3.3.4 Reference Form (Appendix D) Each Proponent must complete the Reference Form (Appendix D) and include it with its proposal. 3.3.5 Other Mandatory Requirements Proponents should refer to Appendix E-RFP Particulars.-Section D. Other Mandatory Requirements. 3.3.6 Rectification Date Proposals satisfying the mandatory requirements before the Rectification Date will proceed to Stage II. Proposals failing to satisfy the mandatory requirements by the Rectification Date will be excluded from further consideration. 3.4 Stage II -Evaluation of Rated Criteria Proponents should refer to Appendix E -RFP Particulars-Section D. Rated Criteria for a breakdown of the Rated Criteria. 3.5 Stage Ill -Evaluation of Pricing . Proponents should refer to the Rate Bid Form at Appendix C and Appendix E-RFP Particulars- Section E. Pricing. 3.6 Cumulative Score and Selection of Highest Scoring Proponent At the conclusion of Stage Ill, all scores from Stage II and Stage Ill will be added together and the highest ranked Proponent will be selected for negotiations in accordance with Part 4-Terms and Conditions of the RFP process . . Appendix E -RFP Particulars D. Rated Criteria The following is an overview of the categories and weighting for the rated criteria of the RFP. Prqponents who do not meet a minimum threshold score for a category will not proceed to Stage Ill of the evaluation process. · Rated Criteria Category Weighting (Points) Experience on Similar Projects 15 Understanding of Project 10 Work Plan and Deliverables 25 Project Team Overview 10 Quality of References 10 Quality of Proposal 5 Insurance, Health & Safety Documentation 5 Pricing 20 Total Points 100 RFP-2-2015 Consulting Services for Building Condition Assessment and Facilities Asset Management System Threshold 10 6 20 6 6 3 3 Page 2 of 5 57 Experience on Similar Projects = 15 Points The proposal shall include information that provides: · a. Three (3) relevant examples of past projects within the last five (5) years that are comparable in scope. This should include a project synopsis that identifies the team members assembled who worked on the project, the current project status, budgeted costs versus actual costs, scheduling issues a.nd resolutions, efficiencies and implementation challenges. Provide client names, contacts and up-to-date contact phone numbers. Advise. the references that the City may be contacting_them; and b. Facility Asset Management Plan implementation experience. Understanding of Project= 10 Points The Proposal shall include information that provides: a. Information that the Proponent understands the objectives and requirements of this project. Proponents must relate these objectives to past experience or expertise of the Proponent and/or their team; and b. A summary of the risks, problems or issues associated with the work and how they will be mitigated. Work Plan, Deliverables and Functional Requirements = 25 Points The Proponent is to articulate, clearly and concisely, the following: a. An indication. of how soon the Proponent can commence the work; b. A detailed work plan indicating the method, tasks, and deliverables; c. A schedule that identifies work phases (by Gantt Chart or other similar illustration) including key dates for major deliverables in the Proponent's detailed work plan; d. Proposed staffing roles and the amount of time that they will be dedicated to this project; e. State the assumptions regarding the roles and involvement of the City staff; and f. The requirements for the software application are to be detailed by the Proponent in accordance with the City's list of Functional Requirements listed in Appendix B. The responses to this section will be fundamental in the overall evaluation·of the proposed system, with regard to the systems' flexibility and functionality. Screen shots and examples of reporting would assist in the evaluation. Project Team Overview= 10 Points It is important that the work be provided by a team that can demonstrate the knowledge of, and experience in providing similar services .for projects of a comparable nature, size and scope. In particular, the Proponent should provide an overview of the key personnel who would be primarily involved in the project and include the. following: a. Identify the prime firm submitting the Proposal and the sub-consultant firms that will be assembled to undertake the work; b. The name, title, mailing address, phone number, fax number and e-mail address of the Design Project Leader; RFP-2-2015 Page 3 of 5 Consulting Services for Building Condition Assessment and 'S'tfiiities Asset Management System c. Condensed resumes and professional credentials of each individual on the Project Team that highlights their education, training, and work history; d. The respective roles of the team members and their current office locations. Team members named in this RFP cannot be replaced without written approval from the City of Pickering; e. Current and future project list that will be undertaken by members of the Proponent's team including their current workload (i.e., identify other competing priorities that are assigned to each member within this project timeline); and f. Organizational chart that clearly defines the chain of command for each individual with the team. · Quality of References-Total Points= 10 Points Relevance of projects similar in scope and value completed over the last five (5) years. Complete Appendix 0-Reference Form Quality of Proposal-Total Points= 5 Presentation of proposal, examples, details, content organization and how well instructions are followed. · Insurance, Health & Safety Documentation-Total Points= 5 Points All documentation and certificates stated in Item 0, Other Mandatory Requirements, being current and valid. The following documents must be submitted in entirety: (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) Ministry of Labour Health & Safety Awareness Training for Su.pervisors and Workers that will be assigned to this project; and (f) Such further information, as the City may request in writing. The City's findings shall be used to serve the best interests of the Corporation of the City of Pickering. E. Pricing -Total Points = 20 points Proponents should review and complete the Rate Bid Form at Appendix C. Pricing will be scored based on a relative pricing formula using the total amount as set out in Rate Bid Form. RFP-2-2015 Consulting Services for Building Condition Assessment and Facilities Asset Management System Page 4 of 5 59 Each proponent will receive a percentage of the total possible points allocated to price for the particular category it has bid on by dividing that proponent's price for that category into the lowest bid price in that category. For example, if a proponent bids $120.00 for a particular category and that is the lowest bid price in that category, that proponent receives 1 00% of the possible points for that category (120/120 = 100%). A proponent who bids $150.00 receives 80% of the possible points for that category (120/150 = 80%), and a proponent who bids $240.00 receives 50% of the possible points for that category (120/240 =50%). Rating Criteria Scoring Lowest total amount -------------------x Total available points=. Score for proposal with second lowest Second lowest total amount total amount Lowest total amount -------------------X Third lowest total amount Total available points= Score for proposal with third lowest total total amount And so on, for each proposal. RFP-2-2015 Consulting Services for Building Condition Assessment and Facilities Asset Management System 60 . Page 5 of 5 ,..... (D RFP-2-2015-Consulting Services for Building Condition Assessments and Facilities Asset Mgmt. System Stage Ill -Evaluation of Pricing Summary ...... · ... ·· ...•..•..... · .· .·· ..... ·.. . ·· ··; .:. ' ,,~ · · < r~~~~~r{~.·~~~;;:·~it~:k}~~:~~~: ·;~~~:·!.:6:~.~'~'t:·J . . .. . <:. . ·· . · i ··.• ..•• R;J)·Burinside:&'Ms,•Ltd;.; ...•• · lt,{;;;~~:·:~;r~>~l*i!~~~~~~G:i~i~~)s;e:~}~;·' ,,. -•• .. •··•· .· '·'•Ni!dineilnteriiationa!Hilc:,,';. ;::1 •.!1:1 ill!. I Lump Sum Points Available Lump Sum Points Available Lump Sum Points Available Lump Sum Points Available Lump Sum Points Available ' Section 1 -FAMS Implementation Total for Section 1: $0.00 $0.00 $0.00 $0.00 $0.00 Section 2-Annual Fees for FAMS System-Year 1 Section 2 -Annual Fees for FAMS System-Year 2 Section 2 -Annual Fees for FAMS System-Year 3 Section 2 -Annual Fees for FAMS System-Year4 Section 2 -Annual Fees for FAMS System-Year 5 Total for Section 2: $0.00 $0.00 $0.00 $0.00 $0.00 Section 3 -Year One Building Condition Assessments Total for ... Section 3: $0.00 $0.00 $0.00 $0.00 $0.00 Additional fee for·data - transfer-CityWide to · $0.00 $0.00 VFA Canada L_ ____________ L _________ ------- Subtotal for Section $0.00 $0.00 1, 2 & 3 $0.00 $0.00 $0.00 Pricing Points Awarded (20 0.00 20 0.00 20 0.00 20 20.00 20 0.00 20 Available): 62 From: Subject: Marisa Carpino Director, Culture & Recreation Report to Executive Committee Report Number: CR 20-15 Date: November 9, 2015 City of Pickering Five Year Accessibility Plan (2016-2020) · Endorsed by the City of Pickering Accessibility Advisory Committee · File: A-1440 Recommendation: 1. That Council endorse the City of Pickering Five Year Accessibility Plan (2016- 2020) as prepared by staff and endorsed by the City of Pickering Accessibility Advisory Committee. Executive Summary: The purpose of the Ontarians with Disabilities Act, 2001 (ODA) is to improve opportunities for inclusion of persons with disabilities and to provide for their involvement in the identification, removal, and prevention of barriers to full participation in the life of the Province. Under this Act, all municipalities are required to prepare annual accessibility plans, to make the plans publicly available, report periodically on progress, and to consult persons with disabilities on the development of the plans as well as implementation. Through regulations under the Accessibility for Ontarians with Disabilities Act, 2005 (AODA), the Government of Ontario has developed a set of mandatory accessibility standards that aim to identify, remove and prevent barriers for people with disabilities in a broad range of key areas impacting the quality of daily living. These accessibility standards apply to public and private sector organizations across Ontario and establish milestones, for each type of "obligated organization" that must be achieved, such that Ontario will be fully accessible by 2025. This Report provides Council with the City of Pickering Five Year Accessibility Plan (2016-2020), as per the attached, against which the City's status and progress will be monitored in relation to the Province's compliance deadlines and performance expectations. The Plan was prepared by a core staff team representing a cross section of the organization and was endorsed by the Accessibility Advisory Committee. This Plan cements a long term strategy to meet compliance with the established standards. Financial Implications: In order to provide accessible communications to the public upon request, $1,000 has been provided for in the Culture & Recreation Administration Report CR 20-15 November 9, 2015 Subject: City of Pickering Five Year Accessibility Plan (2016-2020) Page 2 Current Budget. This budget allocation is submitted annually and may increase or decrease as appropriate, in order to meet the public demand. Facility upgrades & roads upgrades are planned in specific budget years as listed below and is subject to the annual budget approval of Council. While these projects are not being undertaken solely for the purposes of accessibility, they nonetheless will be completed in a manner that considers and provides for accessibility improvements. Any project that cannot be completed within the year listed below, will typically be deferred for completion to the following year. Year Facility Upgrades Roads Upgrades Total 2016 $2,305,000 Capital Budget $1,680,000 Capital Budget $3,985,000 2017 $1,350,000 Capital Budget $100,000 Capital Budget $1,450,000 2018 $668,000 Capital Budget $200,000 Capital Budget $868,000 2019 $200,000 Capital Budget $200,000 Capital Budget $400,000 2020 $550,000 Capital Budget $200,000 Capital Budget $750,000 Total $5,073,000 $2,530,000 $7,603,000 Discussion: In accordance with the Ontarians with Disabilities Act, 2001 (ODA), the City of Pickering has prepared annual accessibility plans and has made these plans available to the public. The plans have been a very useful tool in assessing and removing the barriers within our municipal services, facilities, and roads. With the introduction of the Accessibility for Ontarians with Disabilities Act, 2005 (AODA), the Government of Ontario has gone further to establish accessibility standards for which both public and private sector organizations across Ontario are responsible to meet. The standards set milestones that must be reached every five years or less, so that Ontario is accessible to people with disabilities by 2025. The five standard areas under the AODA include: Customer Service; Information and Communications; Employment; Transportation; and Built Environment. All of the standards (with the exception of the Design of Public Spaces and Built Environment Standard) have been developed and are now law. The Design of Public Places and Built Environment Standard will take effect for the municipalities on January 1, 2016 and for the business community beginning in 2017 and 2018. In order to meet the Accessibility Standards under the AODA and meet the requirement to produce an accessibility plan under the ODA, the City of Pickering has prepared a Five Year Accessibility Plan for the period of 2016-2020. The City of Pickering's Core Staff Accessibility Team has prepared the City of Pickering's Five Year Accessibility Plan (2016-2020) that both positions the municipality to meet the municipality's responsibility, as an "obligated organization" to develop an accessibility plan; and, CORP0227-07/01 revised 63 Report CR 20-15 November 9, 2015 Subject: City of Pickering Five Year Accessibility Plan (2016-2020) Page 3 establishes clear, measurable next steps that will guide implementation, support performance monitoring, and enable objective reporting on Pickering's compliance with the Province's accessibility standards. The Plan for 2016-2020 provides tangible evidence, to the Regulator and to the public, of the City of Pickering's deep commitment to the principles of inclusion underlying Ontario's Accessibility laws, as well as the City's aspiration to not only comply, but to provide leadership through the early adoption of exemplary accessibility practices. The Pickering Accessibility Advisory Committee has been extensively consulted on the City of Pickering Five Year Accessibility Plan (20 16-2020) and has provided its endorsement of the Plan on October 15, 2015. The Five Year Accessibility Plan (2016-2020) will be available to the public at the Pickering Public Library, and the Customer Care Centre. It will also be available on the City of Pickering website. The Plan will be provided in an accessible format upon request. The Core Staff Accessibility Team will review the Plan annually and prepare a progress/status report which will also be made available to the public. Attachments: 1. City of Pickering Five Year Accessibility Plan (2016-2020) Prepared By: Approved/Endorsed By: . A.··.-if Timothy~ ( M~a Carpino o·\ecfur, Culture & Recreation Accessibility Coordinator orate Services & City Solicitor Ric ard Holborn · ector, Engineering & Public Works CORP0227-07/01 revised 64 Report CR 20-15 November 9, 2015 Subject: City of Pickering Five Year Accessibility Plan (2016-2020) Page 4 MC:th Recommended for the consideration of Picker(BJ~ Tony Prevedel, P.Eng. Chief Administrative Officer CORP0227-07/01 revised l\~/~ ~;hy~~nt Chief Executive Officer Pickering Public Library ~~(/ Tom Melymuk ~ Director, City Development 65 en en Citq "~ Five Year Accessibility Plan 2016-2020. Page 1 of 30 )>, -·, ~ )> () :r: 3 m z -1 ::f:!:: ~-. -1 0 fg '"lJ 0 ~ =It k) ~ N 0 \ ---lf\ 0'> -.J · The City of Pickering One The Esplanade Pickering, ON L 1V 6K7 Alternate formats for this document are available upon request, by contacting the City of Pickering Customer Care Centre. T 905.683.7575 Toll Free 1.877.420.4666 TTY 905.420.1739 - For information concerning the 2016-2020 Accessibility Plan, contact the Accessibility Coordinator, Timothy Higgins, at 905.420.4660 ext. 3608 or thiggins@pickering.ca Page 2 of 30 en (X) The City of Pickering ......................................................................................................................................................... 4 Legislation ......................................................................................................................................................................... 6 Consultation ...................................................................................................................................................................... 7 The Core Staff Accessibility Committee ....................................................................... ; ................................................. 7 The City of Pickering Accessibility Advisory Committee ................................................................................................ 7 The Standards ................................................................................................................. .-................................................. 8 Accessible Customer Service Standards ....................................................................................................................... 8 Information and Communications Standards ................................................................................................................. 8 Employment Standards ................................................................................................................................................. 8 Transportation Standards .............................................................................................................................................. 8 Design of Public Spaces Standards (Accessibility Standards for the Built Environment) .............................................. 9 The Plan .......................................................................................................................................................................... 10 The Plan: Accessible Customer Service Standard ...................................................................................................... 11 The Plan: Information & Communications Standards .................................................................................................. 12 The Plan: Employment Standards ............................................................................................................................... 13 The Plan: Transportation Standards ............................................................................................................................ 14 The Plan: Design of Public Spaces Standards (Accessibility Standards for the Built Environment) ............................ 15 Appendix A ....................................................................................................................................................................... 25 Built Environment, Accessibility Related Projects ........................................................................................................ 25 Pickering Accessibility Advisory Committee ................................................................................................................ 29 The Core Staff Accessibility Committee ....................................................................................................................... 30 Page 3 of 30 m (0 Five Year Accessibility Plan The City of Pickering The City of Pickering is Toronto's eastern neighbour and home to a growing community that blends business opportunities, cultural diversity and historical rural settings with a picturesque Lake Ontario waterfront. The City of Pickering is committed to making Pickering an attractive place in which to live, work and invest. Within 22,652 hectares, the City boasts top-quality municipal sports fields and recreation programs, a quarter-million square foot recreation complex, a 19th century living history museum, libraries, dozens of community and neighbourhood parks, conservation areas, waterfront facilities and hiking trails. With an estimated population 95,000, The Corporation of the City of Pickering employs approximately 400 staff to meet the needs of its residents. The Corporation also maintains satellite facilities for Library Services, Fire Services, Recreation Complex, Community Centres, Pickering Museum Village, Bentley House and the municipal Operations Centre. Page 4 of 30 -.1 0 The Corporation operates within five (5) departments headed by the Chief Administrative Officer (and the divisions within the Office of the CAO). Office of the CAO Culture & Recreation • City Administration • Recreation Services • Human Resources • Facility Programs Corporate Services & City Solicitor • Finance • Cultural Services • Facilities Operations • City Clerk City Development • Property & Development Services • Planning • Information Technology • Building Services Engineering & Public Works • Capital Projects & Infrastructure • Information & Support Services • Sustainability & Economic Development • Water Resources & Development Services Fire Services • Transportation & Traffic • Operations • Operations & Fleet Services • Training & Prevention Page 5 of 30 -.1 ...... Library Services are the responsibility of the Pickering Public Library Board which is appointed by Pickering Council. Legislation The Province of Ontario has established accessibility for its citizens as a priority, setting a goal of full accessibility by 2025. To realize that goal, the Province has enacted legislation and established standards for all organizations within the Province to attain, according to incremental deadlines. The Ontarians with Disabilities Act, 2001 (ODA) established the goal of full participation in the life of the Province for persons with disabilities. This will be accomplished by providing for their involvement in the identification, removal and prevention of barriers to that full participation. The ODA also made requirements for municipalities to establish Accessibility Advisory Committees and, in consultation with them, to develop annual Accessibility Plans. The Accessibility for Ontarians with Disabilities A~t, 2005 (AODA) created procedures for developing and implementing standards to meet the individual goals of the ODA. The standards already developed include: • Accessibility Standards for Customer Service • Information & Communications Standards • Employment Standards • Transportation Standards • Design of Public Spaces (Accessibility Standards for the Built Environment) Page 6 of 30 ....... "' Each Standard provides guidelines and deadlines for organizations in the Province, with one or more employees, to follow and to meet. Consultation Development of the City of Pickering's Accessibility Plan 2016-2020 brought together staff representatives from across the City's administration as a Core Staff Accessibility Committee. It also involved a consultation process with the Pickering Accessibility Advisory Committee. The Core Staff Accessibility Committee meets regularly throughout the year. During the development of the Plan, the Committee reviewed the legislative requirements of the ODA, the AODA and the Accessibility Standards developed under the AODA. In consultation with other staff in their particular area of responsibility, they developed action plans to meet or exceed those legislative requirements. As implementation of the Plan proceeds, the Committee reports on what progress has been made and reviews the legislative requirements and updates. They also consider recommendations made by the Accessibility Advisory Committee and other members of the community to determine what changes or additions may be required to the Plan. The City of Pickering Accessibility Advisory Committee (AAC) was created as a requirement of the Ontarians with Disabilities Act 2001 (ODA). Its role is to advise Pickering Council on issues relating to accessibility in the City's activities. In 2015, the AAC reviewed the 2016-2020 Accessibility Plan, provided comments, and recommended adoption of the Plan by Council. The AAC continues to review the Plan annually, and provides input and recommendations for periodic updates. Page 7 of 30 -.1 (A) The Standards Accessible Customer Service Standards Having access to goods and services is essential in our daily lives. This Standard sets out how businesses, service providers and other organizations must go about providing equal access to those goods and services for persons with a disability. Information and Communications Standards We live in an information age. Having access to information and a means to exchange information is vital in our society. This Standard provides the requirements for the manner in which information and communication supports must be provided to persons with a disability. Employment Standards Equal access to employment opportunities is a major right included in the Ontario Human Rights Code. The Employment Standards set out the requirements and responsibilities of employers, as well as employees or prospective employees who have a disability, as they move through all stages of the employment process. Transportation Standards The ability to travel throughout our communities is essential for many facets of our daily lives, including employment, shopping, accessing health services, and for recreation. The Transportation Standards set out requirements for organizations which provide transportation services, as well as municipalities who may regulate those services. This includes both physical requirements for the mode of transportation, as well as the manner in which those services are provided for a person with a disability. Page 8 of 30 -..1 ..J:=o Design of Public Spaces Standards (Accessibility Standards for the Built Environment) The design of the physical environment that we build around us can create barriers, not only for people with mobility problems, but also for people with many other types of disabilities such as hearing or vision impairment, or various types of learning disabilities. This Standard1 focuses on preventing the creation of barriers in public spaces to allow equal access to persons with a disability. This includes such spaces as outdoor eating and play spaces, trails and sidewalks, parking facilities, exterior ramps and paths of travel, and indoor service counters and waiting areas. During the standards development process, a number of recommendations were provided to the Ontario Ministry of Municipal Affairs and Housing for possible inclusion in subsequent versions of the Ontario Building Code. 1 Separate from this Standard, the Ontario Building Code (OBC) regulates most ·aspects of the construction of buildings and other structures within the Province of Ontario. Prior to the development of accessibility standards under the AODA, the Ontario Building Code already included many provisions for accessibility. Page 9 of 30 -.1 (1'1 The Plan The 2016-2020Accessibility Plan has two (2) main focuses: • meeting the legislative requirements mandated by the Province of Ontario. These legislative requirements provide the framework for creating accessible communities • removing existing barriers. While not always required by legislation, the City of Pickering is working towards removing existing barriers throughout its facilities, services and programs. This portion of the Plan is contained in Appendix A and is intended to be updated annually as part of the budget planning process When the original Plan was developed and accepted by Council in 2011, it contained procedures to implement the first four (4) of the Standards. The most recent of the Standards, Design of Public Spaces Standards (Accessibility Standards for the Built Environment), had not yet been enacted. This Standard came into effect on January 1, 2013 with targets for the City of Pickering to meet, beginning in 2016. The Core Staff Accessibility Committee, in consultation with the Pickering Accessibility Advisory Committee, is developing procedu~es for the implementation of the Design of Public Spaces Standards which are contained in this revised Plan. The Plan is divided into sections for each of the five (5) existing Standards as well as Appendix A which relates to changes and additions to services, programs and facilities that are not mandated by Provincial legislation. Efforts have been made to ensure that information in charts is accessible, but should you experience any difficulty in accessing the information, please contact the Customer Care Centre to request an alternate format. Page 10 of 30 -.J en The Plan: Accessible Customer Service Standard The Accessible Customer Service Standard came into effect on January 1, 2008. At that time, the City of Pickering developed its Accessibility Standards for Customer Service Policy which contains procedures for implementing the Standard. By the implementation date of January 1, 2010, the City had met the requirements for the Standard. The City of Pickering continues to: • train staff and volunteers • to monitor its customer service in order to maintain and improve upon the level of accessibility in its programs and services This Accessibility Standards for Customer Service Policy was reviewed and updated in 2014 and is available on the City's website at pickering.ca. Page 11 of 30 -..1 -..1 The Plan: Information & Communications Standards The City of Pickering has met all of the current requirements of the Information & Communications Standards and will continue to: • provide information in a range of accessible formats, when requested, to suit the needs of a person's disability, including any public documents and emergency plans • provide communications supports, when requested, to suit the needs of a person's disability • provide a public feedback process, providing for accessible formats and communications supports, updn request, to suit the needs of a person's disability • provide notice to the public of the availability of alternate formats and communications supports on the City's website and in print material • maintain its website to conform with World Wide Web Content Accessibility Guidelines (WCAG) 2.0 level AA, monitoring additional content to ensure its· compliance As well as the activities noted above, the Pickering Public Library will also: • provide access to accessible materials where they exist • continue the process of digitizing its local history collection to ensure that it is accessible • maintain its website to conform with the WCAG 2.0 level A guidelines and plan for meeting level AA guidelines by 2021. Page 12 of 30 -.J 00 The Plan: Employment Standards To work towards removing barriers to employment for people with disabilities, the City of Pickering has complied with the regulations under the Employment Standard and will continue: • to consult with applicants and employees to determine their accommodation requirements as the result of a disability • to provide accommodations throughout the employment cycle when requested by applicants and employees, suitable to the needs of their disability • to provide an individual accommodation plan that includes emergency response procedures and with provisions for periodic review and updating • to provide notification to both employees and members of the public of the availability of accommodation for persons with a disability • to provide a return to work process for employees who have been absent due to a disability and require disability-related accommodations in order to return to work Page 13 of 30 ....,J CD The Plan: Transportation Standards Most of the requirements of the Transportation Standards relate to the operation of transportation systems. The City of Pickering, however, does not own or operate a transportation system, but is responsible for the regulation of taxicabs within the municipality. Through consultation with the Pickering Accessibility Advisory Committee and members of the public, the City of Pickering continues to monitor on-demand accessible taxicab service in the community to determine the need for any changes in the existing levels of service. Page 14 of 30 (X) 0 The Plan:Design of Public Spaces Standards (Accessibility Standards for the Built Environment) Recreational Trails and Beach Access Routes Compliance Legislated Requirement/Purpose Area of Responsibility Action Plan or Status Date January 1, Consultation with the public and Engineering & Public Plan and implement procedures 2016 persons with disabilities, including Works, Capital for public consultations for trail the municipal Accessibility Projects & development projects Advisory Committee, on the Infrastructure Section, development of recreational trails Senior Coordinator, Landscape & Parks January 1, Meet technical standards regarding Engineering & Public Incorporate The Technical 2016 development of trails as laid out in Works, Capital Requirements for Recreational the Design of Public Spaces Projects & Trails of the Design of Public Standards, including applicable Infrastructure Section, Spaces Standard into the s1gnage Senior Coordinator, planning process for trail Landscape & Parks development Development Page 15 of 30 I 00 __. The Plan: Design of Public Spaces Standards (Accessibility Standards for the Built Environment) Recreational Trails and Beach Access Routes (Cont'd) Compliance Legislated Requirement/Purpose Area of Responsibility Action Plan or Status Date January 1, Meet technical requirements Engineering & Public Incorporate The Technical 2016 regarding development of beach Works, Capital Requirements for Beach Access access routes as laid out in the Projects & Routes of the Design of Public Design of Public Spaces Infrastructure Section, Spaces Standard into the Standards Senior Coordinator, planning process for beach Landscape & Parks access Development Page 16 of 30 (X) N The Plan: Design of Public Spaces Standards (Accessibility Standards for the Built Environment) Outdoor Public Use Eating Areas Compliance Legislated Requirement/Purpose Area of Responsibility Action Plan or Status Date January 1, Provision of a minimum of 1 or Engineering & Public Include the purchase of 2016 20% of tables in outdoor eating Works, Operations & accessible picnic tables into the areas are accessible Fleet Services, Parks annual budgeting process. Mark Operations, tables with the universal Supervisor, Parks accessibility symbol. Additional . Operations costs will vary depending on the choice of supplier, table configuration, and assembly method. January 1, Provision of a level, firm and stable Engineering & Public Plan and implement an 2016 ground surface leading to and Works, Operations & awareness program for staff including the outdoor eating area Fleet Services, Parks responsible for the deployment Operations, of picnic tables Supervisor, Parks Operations --··-·---------- Page 17 of 30 co w The Plan: Design of Public Spaces Standards (Accessibility Standards for the Built Environment) Outdoor Public Use Eating Areas (Cont'd) Compliance Legislated Requirement/Purpose Area of Responsibility Action Plan or Status Date January 1, Provision of circulation space Engineering & Public Plan and implement an 2016 around accessible tables to allow· Works, Operations & awareness program for staff movement of persons using Fleet Services, Parks responsible for the deployment mobility aids Operations, of picnic tables Supervisor, Parks Operations ·---- Page 18 of 30 ()) ~ The Plan: Design of Public Spaces Standards (Accessibility Standards for the Built Environment) Outdoor Play Spaces Compliance Legislated Requirement/Purpose Area of Responsibility Action Plan or Status Date January 1, Accessibility in Design Engineering & Public Include accessibility features as 2016 Works, Capital part of the overall design of Projects & playgrounds Infrastructure Section, Senior Coordinator, Landscape & Parks Development January 1, Consultation with members of the Engineering & Public Plan and implement procedures 2016 public who have a disability, Works, Capital for consultation with the public including the Accessibility Advisory Projects & and the Accessibility Advisory Committee Infrastructure Section, Committee as part of the Senior Coordinator, planning and design process for Landscape & Parks playgrounds Development -------- Page 19 of 30 00 c.n The Plan: Design of Public Spaces Standards (Accessibility Standards for the Built Environment) Exterior Paths of Travel Compliance Legislated Requirement/Purpose Area of Responsibility Action Plan or Status Date January 1, Specific technical requirements: Engineering & Public Include technical requirements 2016 trails, ramps, stairs, curb ramps, Works, Capital for Exterior Paths of Travel of depressed curbs, accessible Projects & the Design of Public Spaces pedestrian signals and rest areas Infrastructure Section, Standard when planning exterior Senior Coordinator, portions of City of Pickering Landscape & Parks facilities and public spaces Development ----- Page 20 of 30 (X) O'l The Plan: Design of Public Spaces Standards (Accessibility Standards for the Built Environment) Accessible Parking Compliance Legislated Requirement/Purpose Area of Responsibility Action Plan or Status Date January 1, Types of accessible spaces, A & B Municipal Law Develop a municipal parking 2016 Enforcement, bylaw to include or exceed the Engineering & Public requirements of the Design of Works Public Spaces January 1, Access Aisles Municipal Law Develop a municipal parking 2016 Enforcement, bylaw to include or exceed the Engineering & Public requirements of the Design of Works Public Spaces .... , January 1, Minimum number of spaces Municipal Law Develop a municipal parking 2016 Enforcement, bylaw to include or exceed the Engineering & Public requirements of the Design of Works Public Spaces January 1, On-Street Parking spaces-when Municipal Law Consult with the municipal 2016 developing new, or re-developing Enforcement, Accessibility Advisory existing on-street parking facilities, Engineering & Public Committee when planning new a municipality must consult with its Works or re-developing existing on- Accessibility Advisory Committee street parking spaces on the need, location and design of Page 21 of 30 (X) ...,.J Compliance Date Legislated Requirement/Purpose accessible on-street parking spaces. Area of Responsibility Action Plan or Status Page 22 of 30 00 00 The Plan: Design of Public Spaces Standards (Accessibility Standards for the Built Environment) Obtaining Services Compliance Legislated Requirement/Purpose Area of Responsibility Action Plan or Status Date January 1, Service Counters Facilities Operations Include accessible design 2016 features when replacing existing service counters. Consult with the municipal Accessibility Advisory Committee as part of the planning process. Include accessible design features when planning service counters in new facilities. Consult with the municipal Accessibility Advisory Committee as part of the planning process. January 1, Fixed Queuing Guides Facilities Operations Include accessible design 2016 features when installing queuing guides. January 1, Waiting areas, accommodating Facilities Operations Incorporate space for mobility 2016 mobility devices devices in the planning of waiting areas. ----- Page 23 of 30 co c.o The Plan: Design of Public Spaces Standards (Accessibility Standards for the Built Environment) Maintenance Compliance Legislated Requirement/Purpose Area of Responsibi-lity Action Plan or Status Date January 1, Procedures for preventative and Engineering & Public Develop and implement 2016 emergency maintenance of Works, Operations & operating procedures for accessibility features Fleet Services, Parks monitoring and providing both Operations, emergency and regular Facilities maintenance for accessibility features in the City of Pickering facilities and public spaces. • . January 1, Procedures for dealing with Engineering & Public Follow the guidelines provided in 2016 temporary disruptions when Works, Operations & the City's existing Disruption of accessible elements are not in Fleet Services, Parks Service Operating Procedure working order Operations, Facilities --- Page 24 of 30 (0 C) Appendix A Built Environment, Accessibility Related Projects (this Appendix is updated annually as part of the City of Pickering's annual budget process and is subject to Council approval of the respective budget) Year 2016 Project or Task Projected Budget Department/Division Responsibility Consolidated Delaney Arena Renovations $1,900,000 Culture & Recreation Civic Complex Accessibility Upgrades (design) $150,000 Culture & Recreation Fire Station 2, Accessible Washroom upgrades $25,000 Culture & Recreation (design) Recreation Complex Renovation of main $100,000 Culture & Recreation reception, public concourse and west entrance site works Museum Accessibility Ramp Replacements $5,000 Culture & Recreation Whites Road & Kingston, concrete retrofit & tactile $200,000 Engineering & Public Works surface indicators (Region Rapid Transit Project) Finch Avenue, new sidewalk installation $150,000 Engineering & Public Works Altona Road, temporary asphalt sidewalk $180,000 Engineering & Public Works installation Glenanna Road, asphalt resurfacing $425,000 Engineering & Public Works . Page 25 of 30 c.o ...... Year 2016 (continued) The Esplanade North, asphalt resurfacing Geta Circle, asphalt resurfacing Stonepath Circle, asphalt resurfacing Shadybrook Drive, asphalt resurfacing Eyer Drive, asphalt resurfacing Petticoat Creek Library Branch, outdoor program space Year2017 Project or Task Recreation Complex Renovation of main reception, public concourse and west entrance site works Civic Complex Accessibility Upgrades (Lobby Counters & Public Washrooms) Finch Avenue, new sidewalk installation $140,000 Engineering & Public Works $175,000 Engineering & Public Works $200,000 Engineering & Public Works $110,000 Engineering & Public Works $100,000 Engineering & Public Works $125,000 Pickering Public Library Projected Budget I Department/Division Responsibility $1,050,000 I Culture & Recreation $300,000 I Culture & Recreation $100,000 I Engineering & Public Works Page 26 of 30 (0 "' Year2018 Project or Task Civic Complex Accessibility Upgrades (Council Chambers) Sidewalk Installations (locations TBD) Pickering Public Library, Central Branch, lobby flooring Pickering Public Library, Central Branch, relocation of study room y~~ti26'18Total'·· Year 2019 Project or Task Don Beer Arena Renovations, to include accessible counters in concession area Sidewalk Installations (locations TBD) .. ~~~t~ao-1·9 ri>.taJ~. . . ··. Projected Budget $500,000 Department/Division Responsibility Culture & Recreation $200,000 I Engineering & Public Works $48,000 $120,000 Projected Budget $200,000 Culture & Recreation Culture & Recreation Department/Division Responsibility Culture & Recreation $200,000 I Engineering & Public Works Page 27 of 30 c.o (..,) Year2020 Project or Task Sidewalk Installations (locations TBD) O'Brien Room Renovations at the Recreation Complex Arena Projected Budget Department/Division Responsibility $200,000 I Engineering & Public Works $550,000 Culture & Recreation Page 28 of 30 co ..r::. Appendix B Pickering Accessibility Advisory Committee Members of fhe Pickering Accessibility Advisory Committee, as of August 2015 are: Terence Arvisais Peter Bashaw Maurice Brenner Andrew Doucette Dan Hughes Cody Morrison Susan Wilkinson Steve Bernardo, Ajax-Pickering Board of Trade Representative Page 29 of 30 co (]1 The Core Staff Accessibility Committee Members of the Core Staff Accessibility Committee, as of September 2015 are: Marisa Carpino Judy Hodgson Darrell Selsky Nilesh Surti Kim Thompson Fred Hyland Sharon Milton Vince Plouffe Don Woolley Kathy Williams Soula Voskopolous Timothy Higgins Culture & Recreation City Administration Engineering & Public Works City Development Municipal Law Enforcement Fire Services Culture & Recreation Facilities Operations Operations & Fleet Services · Pickering Public Library Human Resources Culture & Recreation mcarpino@pickering.ca jhodgson@pickering.ca dselsky@pickering.ca nsurti@pickering. ca kthom pson@pickeri ng. ca fhyland@pickering.ca smilton@pickering.ca vplouffe@pickering.ca dwoolley@pickering.ca kathyw@picnet.org svoskopolous@pickering.ca thiggins@pickering.ca Page 30 of 30 96 From: Subject: Richard Holborn Director, Engineering & Public Works Proposed Traffic By-law Amendments Father Fenelon Catholic School File: A-1440 Recommendation: Report to Executive Committee Report Number: ENG 19-15 Date: November 9, 2015 1. 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, specifically to propose the installation of stopping restrictions on both sides of Eyer Drive at the newly constructed Father Fenelon Catholic School, and to remove the stopping restrictions on both sides of Liverpool Road at the existing location of Father Fenelon Catholic School that will be closing in December 2015; 2. 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, specifically to propose parking restrictions on the west side of Liverpool Road at the closing of Father Fenelon Catholic School; 3. That the attached draft by-law be enacted to amend Schedule "3" to By-law 6604/05 to provide for the regulation of bus loading zones on highways or parts of highways under the jurisdiction of the Corporation of the City of Pickering, specifically to propose the removal of the on-street school bus loading zone on the east side of Liverpool Road at the closing Father Fenelon Catholic School; and 4. That the existing crossing guard location on Liverpool Road at Ilona Park Road be removed, and if required, staff to add a school crossing guard location on Eyer Drive at the newly constructed school. Executive Summary: Stopping restrictions on Eyer Drive were removed when Our Lady of the Bay Catholic School was closed at the end of the 2012-2013 school year. Students from Our Lady of the Bay Catholic School were moved to Father Fenelon Catholic School located on Liverpool Road for the start of the 2013-2014 school year. Our Lady of the Bay Catholic School has since been demolished and a new Father Fenelon Catholic School has been constructed in its place. On December 7, 2015 the Father Fenelon Catholic School located on Liverpool Road will be closed and students will be moved to the new Father Fenelon Catholic School on Eyer Drive. · ENG 19-15 Subject: Proposed Traffic By-law Amendments Father Fenelon Catholic School November 9, 2015 Page 2 Engineering & Public Works staff recommend that the previous stopping restrictions (on both sides of Eyer Drive) that were in place before Our Lady of the Bay Catholic School was closed, be reinstated; that the existing on-street school bus area and stopping restrictions on Liverpool Road in front of the school to be closed be removed; and that parking restrictions be installed on the west side of Liverpool Road to be consistent with parking restrictions on the entire limit of the road. Engineering & Public Works staff recommend that the existing crossing guard location on Liverpool Road at Ilona Park Road be removed and if required; staff to install a school crossing guard location on Eyer Drive at the newly constructed school. Financial Implications: The acquisition and installation of no stopping signs and posts on Eyer Drive, and the installation of no parking signs and posts on Liverpool Road can be accommodated within the 2015 Roads Current Budget. Discussion: At the· end of the 2012-2013 school year the Durham Catholic School Board closed three catholic schools including Our Lady of the Bay Catholic School located at 795 Eyer Drive. Students from Our Lady of the Bay Catholic School were directed to Father Fenelon Catholic School located at 747 Liverpool Road for the start of the 2013-2014 school year. At that time the City of Pickering removed the stopping restrictions, and corresponding by-law, on Eyer Drive that were in place for Our Lady of the Bay Catholic School as they were no longer necessary. Our Lady of the Bay Catholic School has since been demolished and a new Father Fenelon Catholic School has been constructed in its place. On December 7, 2015 the Father Fenelon Catholic School located on Liverpool Road will be closed and students will be directed to the new Father Fenelon Catholic School on Eyer Drive. Engineering & Public Works staff recommend the following measures be enacted on or before December 7, 2015 when the new school on Eyer Drive becomes active: 1. The previous stopping restrictions on both sides of Eyer Drive, prior to Our Lady of the Bay Catholic School closing, be reinstated, which includes stopping restrictions from 40 metres west of Hillcrest Road to 100 metres west of Hillcrest Road, Monday to Friday, 7:30 am to 4:30 pm (illustrated in Attachment 1 ). 2. The existing school bus loading zone and stopping restrictions on Liverpool Road in front of the current school be removed. 3. Parking restrictions on Liverpool Road be installed to replace the existing stopping restrictions on the west side of Liverpool Road, to be consistent with parking restrictions on the entire limit of the road (illustrated in Attachment 2). CORP0227-07/01 revised 97 98 ENG 19-15 Subject: Proposed Traffic By-law Amendments Father Fenelon Catholic School November 9, 2015 Page 3 The draft by-law amendment to Schedule 1, Stopping Restrictions, Schedule 2, Parking Restrictions and Schedule 3, School Bus Loading Zones, of By-law 6604/05 can be found in Attachment 3. Engineering & Public Works staff also recommends the existing crossing guard location on Liverpool Road by Ilona Park Road be removed. Previously there was a crossing guard location on Eyer Drive for the Our Lady of the Bay Catholic School. The school crossing guard was required as a result of the number of parents picking up and dropping off students in the parking lot of Holy Redeemer Church across the street. This was due to the school site not being able to accommodate the level of traffic. The traffic impact study that was prepared for the new Father Fenelon Catholic School did not recommend a crossing guard on Eyer Drive; citing that all school traffic can be accommodated on-site because of the size of the kiss and ride area, which is larger than what was provided at the previous school. Engineering & Public Works staff will monitor the surrounding area for traffic and pedestrian activity following the opening of the school and will install a school crossing guard location if it is required. Attachments: 1. Proposed Stopping Restrictions, Eyer Drive 2. Proposed Removal of Stopping Restrictions, On-street Bus Loading Zone, and School Crossing Guard Location, Liverpool Road 3. Proposed By-law Amendment-Schedule 1, No Stopping, Schedule 2, Parking Restrictions & Schedule 3, School Bus Loading Zones CORP0227-07/01 revised ENG 19-15 November 9, 2015 Subject: Proposed Traffic By-law Amendments Father Fenelon Catholic School Prepared By: Approved/Endorsed By: Page 4 RI~ng Difector, Engineering & Public Works Nathan Emery Coordinator, Traffic Operations c .. '/\·;; /lil .f'\ ~~ , I ~· \)<] _ _. D;~;:lsky, CET, CM~ Ill Manager, Capital Projects & Infrastructure NE:mjh Recommended for the consideration of Pickering City Council ~ {JveJi2 [Jd-: zw 1 ZfJ/5 Tony Prevedel, P.Eng. Chief Administrative Officer CORP0227-07/01 revised 99 ....... 0 0 Engineering & Public Works Department SCALE:: PLOT DATE: NTS October, 2015 -~ Proposed Stopping Restrictions Eyer Drive ~ s;! Q 3 m 1-~ ~~ 0 ~ 1~, ~. _!) I ~ ll>'nr•ino<>ril' ~,., & Public Department SCALE: N.T.S. Proposed Removal of Stopping Restrictions, On-street Bus Loading Zone and School Crossing Guard Location Liverpool Road 101 102 ATTACHMENT# 3 TO REPORT# ~N tl I OJ-iS \ of ·1, 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 traffic and 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 Schedule 1, Schedule 2, and Schedule 3 to By-law 6604/05 to provide for the regulation of stopping restrictions and school bus loading zones on highways or parts of highways under the jurisdiction of the Corporation of the City of Pickering. Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. Schedule 1 to By-law 6604/05, as amended, is hereby further amended thereto by the following: Column 1 Highway Add Eyer Drive Column 2 Side North and South Schedule 1 No Stopping Column 3 Limits (From/To) 40 metres west of Hillcrest Road to 1 00 metres west of Hillcrest Road Column 4 Prohibited Times , or Days 7:30a.m. to 4:30p.m. Monday to Friday By-law No. XXXX Column 1 Column 2 Highway Side Delete Liverpool Road West Liverpool Road East Schedule 1 No Stopping Column 3 Limits (From/To) Ilona Park Road (north intersection) to 156 metres south thereof North limit of Ilona Park Road (north intersection) to 65 metres south thereof Page 2 Column 4 Prohibited Times or Days 7:30a.m. to 4:30p.m. Monday to Friday 7:30a.m. to 4:30p.m. Monday to Friday 2. Schedule 2 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 Ann land Anytime Street Delete Liverpool Road West Bayly Street Ilona Park Anytime Road (north interection) Liverpool Road West 75 metres south of Ilona Park Road (south intersection) to Annland Street 103 104 ATTACHMENT# 3 .TOREPORT# ~(:[ )q-(S By-law No. XXXX 3 of 3 Page 3 · 3. Schedule 3 to By-law 6604/05, as amended, is hereby further amended thereto by the following: Column 1 Highway Delete Liverpool Road Schedule 3 School Bus Loading Zones Column 2 Side East Column 3 Limits (Fromffo) 5 metres north of the north limit of Ilona Park Road (south intersection) to 90 metres south thereof Column 4 Prohibited Times or Days 7:30a.m. to 4:30p.m. Monday to Friday 4. This By-law shall come into force on the day that it is approved by the Council of the. City of Pickering and when signs to the effect have been installed. By-law passed this 16th day of November, 2015. David Ryan, Mayor Debbie Shields, City Clerk From: Subject: Richard Holborn Director, Engineering & Public Works Report to Executive Committee · Report Number: ENG 20-15 Date: November 9, 2015 Proposed All-way Stop Control, Rosebank Road and Toynevale Road File: A-1440 Recommendation: 1. That the attached draft by-law be enacted to amend Schedule "7" to By-law 6604/05 to provide for the regulation of stop signs on highway$ or parts of highways under the jurisdiction of The Corporation of the City of Pickering, specifically to address the proposed installation of an all-way stop control at the intersection ofRosebank Road and Toynevale Road; and 2. That the existing school crossing guard station on Rosebank Road in front of Rosebank Road Public School be relocated to the intersection of Rosebank Road and Toynevale Road upon installation of the all-way stop control at this intersection. Executive Summary: Report ENG 14-15 recommending an all-way stop control at the intersection of Rosebank Road and Toynevale Road was presented to the. Executive Committee on July 6, 2015. At that time, the Executive Committee determined that additional information was required, specifically information regarding the timing of the traffic counts at the intersection and any impact that the rehabilitation of the bridge on Whites Road at Highway 401 had on the counts. Therefore, the Executive Committee referred Report ENG 14-15 back to staff. This report, ENG 20-15 is an update to Report ENG 14-15, which contains the additional information that was requested at the July 6, 2015 Executive Committee Meeting. Area residents requested City of Pickering staff to investigate the installation of an all- way stop control at the intersection of Rosebank Road and Toynevale Road. Safety concerns have been expressed, specifically in regards to vehicle and pedestrian volumes and sightlines at the intersection. In response to these concerns, Engineering & Public Works staff completed a review of the intersection of Rosebank Road and Toynevale Road, including collection of pedestrian and vehicle volumes, completion of municipal all-way stop warrants at the intersection, observations of vehicle and pedestrian traffic, review of existing signs and pavement markings, and review of the location of the school crossing guard station for 105 106 ENG 20-15 Subject: Proposed All-way Stop Control, Rosebank Road and Toynevale Road November 9, 2015 Page 2 Rosebank Road Public School. Vehicle speed was not brought to the City's attention as an issue, therefore, vehicle speeds on Rosebank Road were not analyzed. Staff recognizes that the intersection of Rosebank Road and Toynevale Road has a grade on the north leg such that southbound vehicles approaching the intersection travel up an incline. Observations were completed at the intersection in January 2015, including stopping on the hill during snowy conditions. It was determined that southbound vehicles are able to stop and start on the grade on Rosebank Road when there is snow on the ~oadway, if required to do so. Area residents of the Rose bank Neighbourhood were informed of the proposed all-way stop control and were given an opportunity to provide comments. Overall there were 27 responses received with 14 residents in support and 13 residents opposed. Following the community consultation, a petition was delivered at the July 6, 2015 Executive Committee meeting with 57 signatures in support of an all-way stop at the intersection. Based on the investigation, the City's warrants for all-way stop controls, based on the City's Safer Streets Traffic Management Strategy, were met with Warrant 2: Minimum Vehicle Volume being satisfied for both the June 12, 2014, and January 21, 2015 traffic counts. Overall, based on the results of the vehicle and pedestrian count with the City's All-way Stop Warrant being met, Engineering & Public Works staff recommend the placement of an all-way stop control at the intersection of Rosebank Road and Toynevale Road. Engineering & Public Works staff also recommend that the existing school crossing guard station in front of Rosebank Road Public School be relocated to the intersection of Rosebank Road and Toynevale Road to assist children crossing the intersection to Rosebank Road Public School. Financial Implications: The installation of stop signs, advance warning signs, and stop bar and pavement markings at the intersection of Rosebank Road and Toynevale Road can be accommodated within the 2015 Roads Current Budget. Discussion: Report ENG 14-15 recommending an all-way stop control at the intersection of Rosebank Road and T oynevale Road was presented to the Executive Committee on July 6, 2015. At that time the Executive Committee determined that additional information was required, specifically information regarding the timing of the traffic counts at the intersection and any impact that the rehabilitation of the bridge on Whites Road at Highway 401 had on the counts. Therefore, the Executive Committee referred Report ENG 14-15 back to staff. This report, ENG 20-15 is an CORP0227-07/01 revised ENG 20-15 Subject: Proposed All-way Stop Control, Rosebank Road and Toynevale Road November 9, 2015 Page 3 ·update to Report ENG 14-15, which contains additional information that was requested at the July 6, 2015 Executive Committee Meeting. Area residents requested City of Pickering staff to investigate the installation of an all- way stop control at the intersection of Rosebank Road and Toynevale Road. Safety concerns have been expressed, specifically in regards to vehicle and pedestrian volumes and sightlines at the intersection. In response to these concerns, Engineering & Public Works staff completed a review of the intersection at Rosebank Road and Toynevale Road. City staff's review of the intersection included the following: • collection of pedestrian and vehicle volumes • completion of municipal all-way stop warrants at the intersection • observations of vehicle and pedestrian traffic • review of existing signs and pavement markings • review of the location of the school crossing guard station for Rosebank Road Public School The results of the review and recommendations are presented in the following sections. Review of pedestrian and vehicle volumes at the intersection indicate that an all- way stop control is required based on the City's all-way stop warrant To determine if an all-way stop control is required at the intersection of Rosebank Road and Toynevale Road, staff completed municipal all-way stop warrants, in accordance with the City's Safer Streets Traffic Management Strategy. The City's All-way Stop Warrant calculates whether an all-way stop control is required, taking pedestrian and vehicular volumes, reported collision history and sightlines into consideration. Eight-hour vehicle and pedestrian turning movement counts were completed at the intersection of Rosebank Road and Toynevale Road on Thursday, June 12, 2014 and again on Wednesday, January 21, 2015. The June 12, 2014 count was completed during the rehabilitation of the bridge at Whites Road and Highway 401. The traffic count on June 12, 2014 was not impacted by the bridge rehabilitation on Whites Road given the location of the intersection of Rosebank Road and Toynevale Road in relation to the location of the bridge rehabilitation project. . The specific time periods for the traffic count were 7:00am to 9:00am, 11:00 am to 1:00 pm and 2:00pm to 6:00pm. The peak hour for both vehicular and pedestrian traffic for the morning and afternoon periods at the intersection of Rosebank Road and T oynevale Road are as follows: CORP0227-07/01 revised 107 108 ENG 20-15 Subject: Proposed All-way Stop Control, Rosebank Road and Toynevale Road • June 12, 2014: 7:45am to 8:45am and 5:00pm to 6:00pm • January 21, 2015: 8:00am to 9:00am and 5:00pm to 6:00pm November 9, 2015 Page 4 The City's warrants for all-way stop controls were met with Warrant 2: Minimum Vehicle Volume being satisfied for both the June 12,2014, and January 21,2015 counts. This warrant is a reduced standard approved in the City's Safer Streets Traffic Management Strategy 2003 and is 70% of the Provincial All Way Stop Warrant. The June 12, 2014 and January 21, 2015 all-way stop warrants for the intersection can be found in Attachment 1 and Attachment 2. Although a warrant has been met, City staff were concerned regarding other factors listed in the City's Safer Streets Traffic Management Strategy where all-way stop controls should not be implemented, including: • where the protection of pedestrians, school children in particular, is a prime concern • where traffic would be required to stop on grades Staff recognize that when travelling southbound on Rosebank Road from Granite Court motorists must travel up a 9.35 percent grade for approximately 40 metres, which then transitions into a 2.3 percent grade for approximately 50 metres as it levels out at the intersection with Toynevale Road. Staff also recognize that there is a hidden intersection warning sign at the bottom of the hill for southbound travelling vehicles. It is because of the hill on the north leg that City staff have maintained the position in the past, not to install an all-way stop at the intersection. Knowing that the intersection is now warranted for installation of an all-way stop control based on vehicle volumes, observations were compl~ted at the intersection in January 2015, including the ability of vehicles to stop and start on the hill during snowy conditions. It was determined that a southbound vehicle could stop and start on the grade on Rosebank Road from a queue approaching the intersection, when there is snow on the roadway. In addition, to assist with school children crossing the intersection to and from Rosebank Road Public School, it would be recommended that the existing school crossing guard station in front of Rosebank Road Public School be relocated to the intersection. Also, City staff recognizes that there are other locations in the City of Pickering where vehicles are required to stop on grades. Examples of these include: • Major Oaks Road and Duberry Drive: eastbound all-way stop (5.5 percent grade) • Third Concession Road and Brock Road: westbound traffic signals (6 percent grade for approximately 205 metres) CORP0227 -07/01 revised ENG 20-15 November 9, 2015 Subject: Proposed All-way Stop Control, Rosebank Road and T oynevale Road Page 5 An All-way stop control would not be warranted based on collision history or · sightlines at the intersection The reported collision history for the intersection of Rosebank Road and T oynevale Road indicates that there were six reported angle/turning movement collisions during the previous five year period that are correctable by the installation of an all-way stop control, which is an average of 1.2 collisions per year. The City's All-way Stop Warrant requires there to be an occurrence of three or more reportable collisions peryear, averaged over three years, correctable through the installation of all-way stop controls. Therefore, an all-way stop control is not warranted based on collision history. Although there is a grade on the north leg of the intersection, sightlines are sufficient for the posted speed limit of 40 km/h provided that a vehicle turning from Toynevale Road to Rosebank Road waits a few seconds to allow for southbound vehicles at the bottom of the hill on Rosebank Road to reach the top of the hill. Therefore, an all-way stop control is not warranted based on sightlines. Feedback from residents received by City staff indicates a split among residents on the installation of an all-way stop A letter dated March 31, 2015 was sent to all residents, approximately 900 homes, within the Rosebank Neighbourhood. The letter indicated that City staff were proposing an all-way stop control at the intersection of Rosebank Road and Toynevale Road, and provided area residents an opportunity to review and provide comments on the proposed all-way stop control, as well as to indicate their support or opposition. The letter to residents generated only 27 replies. A summary of those that were in support and those that were opposed are as follows: • replies that were in support of an all-way stop control: 14 (52%) • replies that were opposed to an all-way stop control: 13 (48%) Residents that were in support of the all-way stop control at the intersection of Rosebank Road and Toynevale Road indicated the following: • better for sightlines especially for motorists turning off Toynevale Road • pedestrians, especially children going to Rosebank Road Public School, will be safer if vehicles have to stop at the intersection • will slow traffic making it safer for all users of the roadway It is important to note that City staff is not recommending the all-way stop to control speeds, but is recommending the all-way stop because it meets the City's warrant, as CORP0227-07/01 revised 109 110 ENG 20-15 November 9, 2015 Subject: Proposed All-way Stop Control, Rosebank Road and T oynevale Road Page 6 described in the Safer Streets Traffic Management Strategy, based on traffic volumes for an all-way stop. Residents that were opposed to the all-way stop control at the intersection of Rosebank Road and Toynevale Road indicated the following: • will make it more difficult to get up the hill in the winter, especially if the·re is a vehicle queue at the intersection • an increase of rear-end accidents for traffic on Rosebank Road will occur due to motorists accelerating up the hill towards the stop and running into the back of another vehicle. • a back-up of traffic will occur in the morning and afternoon when motorists are entering and exiting the neighbourhood via Rosebank Road, Granite Court, Whites Road to Highway 401 Following the community consultation, a petition was delivered at the July 6, 2015 Executive Committee meeting with 57 signatures in support of an all-way stop at the intersection. In summary, based on the results of the vehicle and pedestrian count with the City's All- way Stop Warrant being met, Engineering & Public Works staff recommend the placement of an all-way stop control at the intersection of Rosebank Road and T oynevale Road. Engineering & Public Works staff also recommend that the existing school crossing guard station in front of Rosebank Road Public School be relocated to the intersection of Rosebank Road and Toynevale Road to assist children crossing the intersection over to Rosebank Road Public School. This will come into effect upon installation of the all- way stop control at this intersection. The proposed all-way stop control can be seen in Attachment 3. The proposed by-law amendment to Schedule 7 of By-law 6604/05 is presented in Attachment 4. Attachments: 1. All-way Stop Warrant, Rosebank Road and Toynevale Road, June 12, 2014 2. All-way Stop Warrant, Rosebank Road and Toynevale Road, January 21, 2015 3. Location Map-Proposed All-way Stop Control, Rosebank Road and Toynevale Road 4. Proposed By-law 6604/05.Amendment-Schedule 7, Stop Signs CORP0227-07/01 revised ENG 20-15 November 9, 2015 Subject: Proposed All-way Stop Control, Rosebank Road and T oynevale Road Page 7 Prepared By: ~'JJ! 77 -/ l/1(~ [__7/ Nathan Emery Coordinator, Traffic Op~rations /7\. t/ ,1 [ / \ ///1 ll -·1 ;/ t~_)t~~~r-~ Darrell Selsky, CET, CMM lllv-- Manager, Capital Projects & Infrastructure NE:mjh Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer CORP0227-07/01 revised Approved/Endorsed By: ~~ rn7ector, Engineering & Public Works 1 1 1 11 2 RFPOF:Ti,\~£f\!f7 ;)O-;r J r .·· ·-z....- AII-Way"St'rJp Warrant (Local and Minor Collector Str!3ets) Total vehilce volume on all approaches exceeding 70% of 350 (245) for highest hour recorded; and 3-way intersection volume split not exceeding 75/25 for highest hour recorded. OR 4-way intersection volume split ratio not exceeding 65/35 for highest hour recorded. Warrant 3 Collision History Occurance of 3 or more reportable right-angle collisions of a type correctible through the installation of an all-way stop in a 12 month period averaged over 3 years. There were 6 reported angle/turning movement collisions during the last 5 years. (Avg. 1 .2 per year) Yes Yes No 1 of2 Warrant 4 ATTACHMENT# TO REPORT# ;/of :k All-Way -Stop Warrant (Local and Minor Collector Streets) Sightline Requirments The minimum stopping sighjt distance at this intersection is less than the applicable criteria for No wet pavement as specified in the Stopping Sight Distance table below Design Speed (km/h) 40 50 60 70 Stopping Sight Distance Required (m) 50 60 85 110 The stopping sight distance varies, vehicles can be seen on Rosebank at Granite Court when looking from the Toynevale intersection but cannot been seen in the area just south of the Granite ·Court until close to Toynevale. The blind spot is <50m from the intersection of Toynevale Note: For the multi-way stop to be technically justified, any ihdividual warrant must be satisfied. All-Way Stop Warrants Met: Yes 2of2 113 ATTACHMENT#~ TO REPORT# EtJ tl ~() •P ~~ . ., '2- AII-Way Stop Warrant of~;;._ (Local and Minor Collector Streets) Traffic control signals are warranted but cannot be implemented immediately Warrant 2 Minimum Vehicle Volume Total vehilce volume on all approaches exceeding 70% of 350 (245) for highest hour . recorded; and 114 3-way intersection volume split not exceeding 75/25 for highest hour recorded. OR 4-way intersection volume split ratio not exceeding 65/35 for highest hour recorded. Warrant 3 Collision History Occurance of 3 or more reportable right-angle collisions of. a type correctible through the installation of an all-way stop in a 12 month period averaged over 3 years. There were 6 reported angle/turning movement collisions during the last 5 years. (Avg. ·1.2 per year) No Yes Yes No 1 of2 --REPORT# , J;;z:J_~/ c5Zo --f) -~2 --~~-2. All-Way Stop Warrant (Local and Minor Collector Streets) Warrant 4 Sightline Requirments The minimum stopping sighjt distance at this intersection is less than the applicable criteria for No wet pavement as specified in the Stopping Sight Distance table below Design Speed (km/h} 40 50 60 70 Stopping Sight Distance Required (m) 50 60 85 110 The stopping sight distance varies, vehicles can be seen on Rosebank at Granite Court when looking from the Toynevale intersection but cannot been seen in the area just south of the Granite Court until close to Toynevale. The blind spot is <50m from the intersection of Toynevale Note: For the multi-way stop to be technically justified, any individual warrant must be satisfied. Ail-Way Stop Warrants Met: Yes 2of2 11 5 Engineering & Public Works Department SCALE: N.T.S. 116 -..:...-.of........~._ Proposed All-way Stop Control Rosebank Road and Toynevale Road 1-'.TTACHMENT#_g_ TO REPORT# ENf] d-o~ I~ The Corporation-otth·e ~itY~ickering By-law No. Being a by-law to amend · by-law 6604/05 providing for the regulating of traffic and 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 Schedule 7 to By-law 6604/05 to establish an all-way stop control at the intersection of Rose bank Road and T oynevale Road. Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. Schedule 7 to By-law 6604/05, as amended, is hereby further amended thereto by the following: Column 1 Highway Add Rosebank Road @ T oynevale Road Schedule 7 Stop Signs Column 2 Compulsory Stop Facing Traffic Rbsebank Road, northbound and southbound 1 1 7 118 By-law No. XXXX ATTACHMENT# Lf TO REPORT# 1.--" 1 ~ ·70 1-rr-Ct vc-:1 o<--.J Page 2 --D_of ? 2. This By-law shall come into force on the date that it is approved by the Council of the City of Pickering and when signs to the effect are installed. By-law passed this 13th day of July, 2015. David Ryan, Mayor Debbie Shields, City Clerk From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Banking and Financial Authorities Recommendation: 1. That Resolution# 144/99be repealed; Report to Executive Committee Report Number: FIN 22-15 Date: November 9, 2015 2. That the Division Head, Finance & Treasurer be authorized and directed to undertake any and all activities, including the execution and signing of agreements and contracts, necessary to undertake, safeguard and ensure the financial affairs and banking of the City, including, but not limited to, those items and activities indicated in Attachment 2, Section A; 3. That the Mayor, Division Head, Finance & Treasurer, Deputy Treasurer, Manager, Accounting Services and Manager, Budgets & Internal Audit be named Signing Officers for the purposes of conducting the financial affairs and banking of the City of Pickering and that any two of them be authorized to undertake the activities outlined in Attachment 2, Section B and any one of them be authorized to undertake the activities outlined in Attachment 2, Section C; and 4. That the appropriate officials of the City of Pickering be authorized to take the necessary action to give effect hereto. Executive Summary: Not Applicable Financial Implications: Adoption of the recommendations by Council will have no financial consequences. Discussion: Resolution# 144/99 was passed by Council at its meeting on June 28, 1999. It provided for signing officers and banking authorities within the City. Since that time, positions in the Corporate Services Department, Finance Division have changed, thereby requiring an update to the appointments of the City's signing officers. Adoption of the recommendations by Council will update the signing authorities by adding the Manager, Budgets & Internal Audit and updating the Treasurer's title. 11 9 120 Report FIN 22-15 November 9, 2015 Subject: Banking and Financial Authorities Page 2 Attachments: 1. Excerpt from Report FIN 14-99 and Approved at Council Meeting of June 28, 1999 2. Banking and Financial Authority Prepared By: ~~~ Kristine Senior Manager, Accounting Services Recommended for the consideration of Pickering City Council Approved I Endorsed By: Stan Karwowski te Services & City Solicitor ~. /l-ee:~~ Ocf LG, Z0/5 Tony Prevedel, P.Eng. Chief Administrative Officer ATTACHMENT#j__ TO REPORT#iJ..cl,;1.)_-l~ Excerpt from Report FIN 14-99 and Approved at Council Meeting of June 28, 1999 Resolution #144/99 -Appendix #1 lvfoved by Councillor Johnson Seconded by Coun-cillor Pickles That the Report ofilie Executive Committee dated June 28, 1999'be adopted. Item #8. Annendii: =1 1. That the Director of Finance and Treasurer be author.!Zed to recommend and ' . . . approve project :financing to the .Mayor and Chief Adrrrinistrative Officer for projects . contained .ln. ilie amual capital budget or current budget, during the 1999 summer · recess ofT Ol-'.11 Co!Jncll; and -2. That Resolm::ion # 466/97 (Attachment 1) be replaced; and . . 3. That the Drr~ctor ofFinance and Treasurer be authorized and directed to undertake. any and all activities, :including the execution and signing of agreements. and contracts, necessary to undertake, safe~d . and en5ure the :financial a.ffalrs and banking· of ilie Town, :including, but not Emit~d to, those items and activities :indicated :inAttacbment 2, Section (a); and 4. That the Mayor, Director of Finance and Tre3surer, Deputy Treasurer, Manager of Accountmg and Manager of Finance be named Signjng Officers for the purposes of conducting the :financial affair~ and bankJng of the To'WD. of Pickering and that anY two of them be authorized to undertake the activities ·ouilined :in Attac.bment 2, Section(c); and 5. That the appropriate officials of the Tovvn. o(Picker:i:ng be authorized to give effect thereto. · 1 21 122 City of Pickering Banking and Financial Authority Section A 1. Appoint the bankers of the Corporation, hereinafter referred to as "the bank" and any other financial institution. 2. To manage funds, including making investments under the appropriate legislation and Council approved Investment Policy, transferring funds, and borrowing money or otherwise obtaining credit from the bank or through another financial institution upon the credit of the Corporation by way of loans, advances, overdraft or otherwise. 3. To execute the bank's, financial institution's or lender's form of agreement as to the operation and verification of the accounts of the Corporation; and also to execute any agreement with or authority to same relating to the banking business of the Corporation whether generally or with regard to any particular transaction (including, without limitation, instruction and information by telephone and fax) such that all acts and things done and documents executed on behalf of the Corporation as hereinbefore authorized may be relied upon by the bank or other financial institution and shall be valid and binding upon the Corporation whether or not the corporate seal of the Corporation has been affixed to any such document. 4. To provide the bank or other financial institution with a copy of this resolution and a list of the names of the persons authorized by this resolution to do any act or thing, together with specimens of their signatures·, to be acted upon by each branch of the bank with which any dealings are had by the Corporation until notice to the contrary or of any change therein has been given in writing to the Manager or Acting Manager of such branch. Section B 1. To make, sign, draw, accept, endorse, negotiate, lodge, deposit or transfer all or any cheques, promissory notes, drafts, acceptances, bills of exchange, orders and forward exchange, whether or not an overdraft is thereby created in any account of the Corporation; also to execute any authority to any officer of the bank to accept and/or pay all or any drafts or bills of the Corporation; also to execute any authority to any officer of the bank to accept and/or pay all or any drafts, bills of exchange or promissory notes on behalf of the Corporation; also to execute receipts for and orders relating to any property of the Corporation held by or on behalf of the bank or financial institution. 2. To mortgage, hypothecate, charge, pledge, assign, transfer or otherwise create a security interest in or give security under the Bank Act or otherwise upon any or all currently owned or subsequently acquired real or personal, movable or immovable property of the Corporation including book debts, rights, powers, franchises and undertaking to secure any present or future indebtedness or liability of the Corporation to the bank or other financial institution or lender. 3. To do all acts and things and execute all documents requisite to give security to the bank or other financial institution or lender whether by mortgage, hypothecation, charge, pledge, assignment, transfer or otherwise, including, without limiting the generality of the foregoing, security upon accounts receivable, bills, notes and other negotiable instruments, securities (as defined in the Bank Act), warehouse receipts, bills of lading, security under section 177 or under section 178 of the Bank Act, and mortgage security under the Bank Act, the National Housing Act or any other Act. Section C 1. To negotiate or deposit with or transfer to the bank or other financial institution (but for the credit of the Corporation's account only) all or any cheques, promissory notes, drafts, acceptances, bills of exchange and orders for the payment of money, and for such purpose to draw, sign or endorse the same, or any of them, or to deliver the same, or any of them, to the bank endorsed with the name of the Corporation impressed thereon by a rubber stamp or other device; also to receive all paid cheques and other debit vouchers charged to any account of the Corporation and to execute the bank's form of receipt therefor. 123 124 From: Paul Bigioni Director, Corporate Services & City Solicitor Report to Executive Committee Report Number: FIN 25-15 Date: November 9, 2015 Subject: Cash Position Report as at September 30, 2015 Recommendation: That report Fl N 25-15 from the Director, Corporate Services & City Solicitor be received for information. Executive Summary: This report presents the City of Pickering's cash position, continuity of taxes receivable, outstanding investments, development charges collected, other development contribution information and building permits issued for the nine months ended September 30, 2015. Key cash flow indicators during the first nine months of 2015 are summarized below with comparison to indicators from the same period last year: • The number of building permits issued from January to September this year is lower by about 6.3% from 571 last year to 535 this year. • The City portion of development charges collected is also down by 22% from $2.3 million last year to approximately $1.8 million this year. The City maintains a diversified investment portfolio with a balanced volume of short and long term investments. Financial Implications: The financial position of the Corporation for the nine months ending September 30, 2015 is a net increase in cash of $8,467,177 from $10,974,972 to $19,442,149. Sources of Funds for the period totaled $220,907,397 and Uses of Funds totaled $212,440,220. The large balance at the end of September arises from the commercial due date being moved from October to coincide with the September residential due date. These funds will be invested in short-term paper until the next quarterly levy payment on December 15th. FIN 25-15 November 9, 2015 Subject: Cash Position Report as at September 30, 2015 Page 2 Discussion: This report presents the nine month period of activity ending September 30, 2015. Statement of Cash Position: Attachment 1 shows the City's sources and uses of funds for the first nine months of 2015. SubcatE?gories are presented to highlight cash transactions that are material in nature or have large dollar values. The schedule summarizes the increase in cash of $8,467,177 over the first nine months of the year. Please note however, that comparison of the increase or decrease in cash over the same period in prior years may not be relevant due to the timing differences of receipts and disbursements each year depending on the tax payment due dates. It does not, in any way, imply that the City is in. a worse or better cash position as compared to the same period in prior years. This period includes a $30.5 million post-dated payment for October to the Region issued in September to remit the commercial and residential levies collected. Most of the September 30th bank balance will be invested to meet the last quarter levy payments to the School Boards. Continuity of Taxes Receivable: Attachment 2 summarizes the tax related transactions for the nine month period ending September 30, 2015 and shows the outstanding taxes receivable as at September 30, 2015. The total amount i_ncludes taxes billed for the City, Region and School Boards. It includes the amounts owing for the September 25th residential and commercial due date. Outstanding Investments: Attachment 3 reflects the short-and long-term investments for both Current and Reserve Funds outstanding as at September 30, 2015. Total investment portfolio is approximately $107.9 million with $4.0 million from internal loans and $103.9 million from general investments. Total investments differ year over year depending on the timing of collection and remittance of development charges and supplementary taxes. Development Charges Collected: The City is responsible for the collection of development charges on behalf of the City, Region and School Boards. Attachment 4 shows the total collection of $5.2 million from January to September 2015 with $1.8 million for the City, $2.5 million for the Region and $0.9 million for the School Boards. Note that development charges collected, as reported under the Sources of Funds on Attachment 1, does not match the remittance amounts to the Region and School Boards indicated under the Use of Funds, also in Attachment 1. This variance is a result of: (a) timing differences in payments to the Region and School Boards as monies become due 25 days following the month of collection; and (b) the City portion is not reported as a line item under the Use of Funds in Attachment 1. Other Development Contributions: Attachment 5 is provided to show other relevant development contributions received in the first three quarters of 2015. 125 126 FIN 25-15 Subject: Cash Position Report as at September 30, 2015 November 9, 2015 Page 3 Multi-Year Receipts: The balance of the Attachments shows multi-year, quarterly receipts of the City's portion of development charges presented in a bar chart. The $1.8 million total amount collected in the first nine months of 2015 is the second lowest first nine months collection in the past five years. The same is true for the building permits. The 535 permits issued in the first nine months is the second lowest total issued in the past five years. Development Charge payments are due when the building permit is issued. The lower DC payments shown in Attachment 4 are directly related to the lower building permit activity. The 2015 building permit revenues are projected to be below budget. The building permit revenue shortfall may range from $100,000 to $400,000. Staff are monitoring the building permit revenue situation and have several options available to address the revenue shortfall and to maintain the 2015 budget plan. Attachments: 1. Statement of Cash Position 2. Continuity of Taxes Receivable 3. Outstanding Investments 4. Development Charges Collected 5. Other Development Contributions 6. City Portion of Development Charges Collected (quarterly) 7. Building Permits issued (quarterly) Prepared By: ~~~ ~Jvt;_ Dennis P. Arboleda, CPA, CMA Supervisor, Accounting Services Recommended for the consideration of Pickering City Council Approved!Endorsed By: arwowski, CPA, CMA, MBA Divisi ead, Finance & Treasurer ~;eJ~ C1f lh, LotS Tony Prevedel, P.Eng. Chief Administrative Officer Sources of Funds: Accounts Receivable collected Development charges collected * Operating Grants-in-lieu: Federal Provincial Ontario enterprises Municipal enterprises Linear Properties Federal specific grants Ontario specific grants Interest Income Sale of land Tax payments received POA Revenue Total ' Use of Funds: Operating and Capital Expenditures Payroll Region Levy** Regional portion of Dev. Charges School Board Levies School Board portion of Dev. Charges Debenture payment to Region Total Net Cash Increase (Decrease) Current Fund TOTAL * Includes City, Region and School Boards ATTACHMENT#__L TO REPORT#LL.tJ ~S""· t5' , City of Pickering Statement of Cash Position for nine months ending September 30, 2015 $ 4,451,959 5,477,578 106,961,893 1,865,826 1,536,763 7,419,992 1,545,723 - 50,349 125,777 488,998 10,000 90,886,232 86,307 $ 220,907,397 $ 38,272,1:10 31,623,567 104,020,158 2,759,584 32,339,780 858,790 2,566,231 $ 212,440,220 $ 8,467,177 FINANCIAL POSITION Bank Balance Net Cash Bank Balance January 1, 2015 Provided {Used) September 30, 2015 $ 10,974,972 $ 8,467,177 $ 19,442,149 $ 10,974,972 $ 8,467,177 $ 19,442,149 ** Includes $30.5M October 2015 post dated payment to Region for final Residential and Commercial levies 127 ...... !',) CD Dec 31/14 Penalty and Taxes Supplementary Receivable Interest Added Billed Taxes Billed $ $ $ $ Current Year Taxes 5,586,988 197,294,393 Penalty and Interest 334,107 572,787 2014 Taxes 9,951,809 Penalty and Interest 788,378 557,257 2013 Taxes (1 ,428,230) Penalty and Interest 434,270 279,613 2012 Taxes (496,472) Penalty and Interest 218,757 153,970 Prior Years Taxes (831 ,577) Penalty and Interest 114,417 222,811 TOTAL 14,672,447 1,786,438 197,294,393 - City of Pickering Continuity of Taxes Receivable for nine months ending September 30, 2015 Tax Payments and Sep 30/15 Write Offs Adjustments Receivable $ $ $ -( 176,977 ,289) 25,904,092 (835,662) 71,232 (34,450) (6,032,456) 3,884,903 (1 ,300,394) 45,241 (2,044) 3,697,975 . 2,267,701 (688,750) 25,133 .~ 2,436 1,891,027 1,396,991 (358,202) 14,525 (81 ,244) 3,398,923 2,486,102 (315,048) 22,180 (115,302) (177,519,876) 36,118,100 2015 Tax installment due dates: Interim Billing: Commercial & Residential (February 27, April 27) Final Billing: Residential (June 25, September 25) Tax Write Offs reflects "Minutes of Settlement", Assessment Review Board Decisions and Council approved adjustments under Sections 357 & 358 of the Municipal Act, 2001. Final Billing: Commercial (September 25) )> ~ () :c 3: m z -1 fj a ~ '"0 0 ~ =t-1: b ~~ '{\ \A ....... 1'.:1 co Financial Name of Institution Security SHORTTERMINVESTMENTS Current & Reserve Fund Investments Nesbitt Burns FIRST BANK BA Nesbitt Burns FIRST BANK BA Nesbitt Burns FIRST BANK BA Nesbitt Burns FIRST BANK BA Nesbitt Burns FIRST BANK BA Nesbitt Burns FIRST BANK BA Nesbitt Burns FIRST BANK BA TD Waterhouse TD Bank TD Waterhouse BNS GIG TD Waterhouse RBC GIG TD Waterhouse HSBC TRUST CO GIG TOTAL SHORT TERM INVESTMENTS LONG TERM INVESTMENTS Current & Reserve Fund Investments Nesbitt Burns PROV OF ONT DEBENTURE Nesbitt Burns PROV OF ONTARIO Nesbitt Burns BANK OF MONTREAL Nesbitt Burns PROV OF ONTARIO Nesbitt Burns CANADA HOUSING TRUST Nesbitt Burns CIBC DEPOSIT NOTES Nesbitt Burns BNS SR DEPOSIT NOTE Nesbitt Burns RBC Nesbitt Burns CIBC DEP NOTE Nesbitt Burns BNS SR DEPOSIT NOTE Nesbitt Burns RBC Nesbitt Burns PROV OF ONTARIO Nesbitt Burns CANADA HOUSING TRUST Nesbitt Burns RBC Nesbitt Burns RBC Nesbitt Burns BNS SR DEPOSIT NOTE Nesbitt Burns CIBC DEP NOTE Nesbitt Burns BNS TDINV TD BANK TOTAL LONG TERM INVESTMENTS TOTAL INVESTMENTS Internal Investments to Capital Projects Purchase Maturity Interest Date Date Rate 14-Jul-15 9-0ct-15 0.60% 6-Aug-15 4-Nov-15 0.48% 27-Aug-15 16-Nov-15 0.47% 1-Sep-15 25-Noy-15 0.49% 11-Sep-15 9-Dec-15 0.49% 14-Sep-15 14-Dec-15 0.53% 28-Sep-15 22-Dec-15 0.55% 30-Sep-15 30-Dec-15 0.55% 25-Aug-15 25-Aug-16 1.20% 26-Jan-15 26-Jan-16 1.35% 23-Feb-15 23-Feb-16 1.35% 5-0ct-10 8-Mar-18 4.20% 5-0ct-10 8-Mar-16 4.40% 27-Sep-11 10-Mar-16 3.10% 5-Dec-11 8-Mar-17 4.30% 12-Apr-12 15-Dec-15 2.45°/o 21-Nov-12 18-0ct-17 2.35% 21-Feb-13 21-Sep-17 2.36% 26:Mar-13 8-Dec-16 2.68% 26-Mar-13 7-Mar-18 2.22% 11-Jun-13 22-Mar-18 2.24% 29-Jan-14 11-Jan-16 3.36% 18-Sep-14 8-Sep-17 1.90% 18-Sep-14 15-Dec-17 1.70% 17-Dec-14 11-Jan-16 3.36% 17-Dec-14 8-Dec-16 2.68% 4-May-15 22-Mar-18 2.24% 13-May-15 8-Nov-16 2.65% 15-Sep-15 1-Dec-16 2.74% 24-Dec-14 30-0ct-15 4.97% Yield: 2.00-3.96% Investment Cost 6,937,065.79 3,499,830.24 5,606,107.40 5,452,776.74 5,899,030.92 6,253,671.54 5,848,562.88 5,283,804.24 2,094,920.00 2,040,968.00 2,015,803.00 $ 50,932,540.75 $ 2,528,851.26 2,855,737.72 1,961 '198.02 2,518,390.75 2,562,770.88 1 '144,681.53 2,483, 720.53 2,443,728.67 1.492,273.42 1,324,807.82 2,809,176.05 1,926,771.07 1,915,217.49 4,984,263.22 4,994,601.72 1 ,890,060.48 1,887,732.00 7,088,763.96 4,106,147.74 $' 52,918,894.33 $ 103,851,435.08 $ 4,015,538.00 City of Pickering Outstanding Investments as at September 30, 2015 Interest #of Days Maturity 0/S Value 9,934.21 87 6,947,000.00 4,169.76 90 3,504,000.00 5,892.60 81 5,612,000.00 6,223.26 85 5,459,000.00 6,969.08 89 5,906,000.00 8,328.46 91 6,262,000.00 7,437.12 85 5,856,000.00 7,195.76 91 5,291,000.00 25,207.91 366 2,120,127.91 27,553.07 365 2,068,521.07 27,213.34 365 2,043,016.34 136,124.57 $ 51,068,665.32 INT S-A (MAR 8 & SEP 8) 2,444,000.00 BOND S-A (MARS & SEPS) 2,794,000.00 DEP NOTE S-A (MAR 10 & SEP 10) 1,940,000.00 BOND S-A (MAR 8 & SEP 8) 2,399,000.00 BOND S-A (JUN 15-DEC 15) 2,542,000.00 DEP NOTE S-A (APR 18 & OCT18) 1 '136,000.00 DEP NOTE S-A (MAR 21 & SEP 21) 2,470,000.00 BOND S-A (JUN 8 & DEC 8) 2,403,000.00 DEP NOTE S-A (MAR 7 & SEP 7) 1.482,000.00 DEP NOTE S-A (MAR 22 & SEP 22) 1,320,000.00 BOND S-A (JAN11 &JUL 11) 2,753,000.00 BOND S-A (MAR 8 & SEP 8) 1,908,000.00 BOND S-A (JUN15 & DEC 15) 1,905,000.00 BOND S-A (JAN 11 & JUN 11) 4,886,000.00 BOND S-A (JUN 8 & DEC 8) 4,895,000.00 BOND S-A (JUN 8 & DEC 8) 1,848,000.00 BOND S-A (JUN 8 & DEC 8) 1,848,000.00 BOND S-A (JUN 1 & DEC 1) 4,006,000.00 4,000,000.00 $ 48,979,000.00 $ 100,047,665.32 Term: 5 -1 o years J> ;:1 )> () :r: 3: rn z -f ::f1: fuv' d ;::o m -u 0 ~ ~ <)_., ~ VI ....... w 0 AMOUNT COLLECTED January February March April May June July August September TOTAL City's Portion Region of Durham $ $ 114,201 18,657 329,914 74,051 241,091 86,753 416,973 101,287 ' 164,957 74,315 177,646 1,609,426 190,130 397,663 103,640 121,783 77,730 12,702 1,816,282 2,496,637 City of Pickering Development Charges Collected for nine months ending September 30, 2015 Durham District Durham Catholic School Board School Board Total $ $ $ 17,541 7,074 157,473 50,674 20,436 475,075 37,031 14,934 379,809 72,113 29,082 619,455 25,337 10,218 274,827 358,616 144,624 2,290,312 21,439 8,646 617,878 15,592 6,288 247,303 11,694 4,716 106,842 610,037 246,018 5,168,974 )> ;:t )> () :c 3: m z -1 ~· d ?;; "1'J 0 ~ :::j:f: ,~ l?.:"- )b V'. ,I -l/'1 CONTRIBUTIONS: Cash -In -Lieu of Parkland TOTAL CASH-IN-LIEU __. w __. City of Pickering Other Development Contributions for nine months ending September 30, 2Q15 $1,042,758 $1,042,758 :(:J: ~ lc= lj--., RJ ~ \ -V) ...... w ""' $ 2,500,000.00 2,000,000.00 1,500,000.00 1,000,000.00 I 500,000.00 0.00 591,974 557,401 City Portion of Development Charges Collected 2010-:-2015 1,958,597 63 1,087,107 -1,089,137 776,074 656,268 9 998,618 759,576 685,206 553,359 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd ~~~~~~~~~~~~~~~~~~~~~~~ 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 1 ,342,573 3,206,375 3,283,505 3,284,121 2,341,563 1 ,816,282 )'> ~ ~ () J: 3: IT! z --i ~ a ;;o m ... .., 0 ~ =It ~ r,Z.. <u ~ U'\ 400 300 200 100 0 ........ w w '10 '10 '10 '10 1st 2nd 3rd 4th Qtr Qtr Qtr Qtr 437 348 '11 '11 '11 '11 1st 2nd 3rd 4th Qtr Qtr Qtr Qtr 548 Building Permits Issued 2010-2015 [-mNo. of Permits j '12 '12 '12 '12 1st 2nd 3rd 4th Qtr Qtr Qtr Qtr 712 228 167 '13 '13 '13 '13 1st 2nd 3rd 4th Qtr Qtr Qtr Qtr 633 203 214 '14 '14 '14 '14 1st 2nd 3rd 4th Qtr Qtr Qtr Qtr 571 215 '15 '15 '15 1st 2nd 3rd Qtr Qtr Qtr 535 t~4~ ~ )~ ~ (/'• I \ -U( 134 Cit.q a~ From: Paul Bigioni Director, Corporate Ser\iices & City Solicitor Subject: Financial System Status Update· Recommendation: Report to Executive Committee . Report Number: FIN 27-15 Date: November 9, 2015 That report FIN 27-15 from the Director, Corporate Services & City Solicitor be received for information. Executive Summary: The Corporation and its staff require a financial system that meets the current and future information needs of the City. The need for a new financial system was recognized by Council in 2012 as a Corporate Priority. The purpose of this report is to provide Council with a status update regarding the new financial system. The City's financial system consists of property tax, general ledger, accounts payable, accounts receivable, budgeting, payroll (external provider), asset management and purchasing. The City went live with its new property tax system (Tax Manager) or TXM on May 2, 2015. The 2015 final and supplemental tax bills were issued using TXM. This year, the City hired Deloitte Consulting to undertake a financial system review and develop a business case as it relates to the City's financial system. The Deloitte study is attached to this report. The report's conclusions are very clear. The financial system review considered several alternatives including maintaining the status quo and various vendor strategy options. The report does not recommend that the City continue with the status quo due to system risks (failure) and higher potential future operating costs. Within four to seven years, there is a high probability that the current financial system may not function due to system compatibility and security issues. The next step in the process is to develop a Request for Proposal (RFP) for a new software system and implementation. The specifications for the new system will include estimated transaction volume related to Seaton and downtown intensification. Planning for the new financial system will take into consideration current and future development of the City. The 2016 Budget will include consulting resources to develop the RFP and evaluate the various submissions. The 2017 budget will include funding to purchase the system and to implement the new software over a two year period. FIN27-15 Subject: Financial System Status Update November 9, 2015 Page 2 Financial Implications: The consequences of doing nothing may pose a serious challenge to the financial management of the corporation. As stated on page twelve of the Deloitte report, "inevitably the system will fail to meet requirements and the fix/upgrade will be challenging with costs substantially higher than a planned replacement." The City has an opportunity to pursue a complete, comprehensive approach to system replacement and avoid higher conversion and operating costs. Discussion: In December 2013, Council approved report FIN 28-13 awarding the property tax software and implementation contract. The implementation of the new system started in July, 2014 and was completed on May 2, 2015. Taxation, Accounting and IT staff have completed the implementation, training and testing. Automated interfaces were developed so that the new tax system would be able to retrieve and update information automatically. As expected, there were challenges and headaches during the system implementation. To reduce complexity, it was decided that only the account balance for each roll number tax account would be converted to the new system and the previous transaction history from 1997 to May 1, 2015 would remain in the old system. The transaction history is still available with the old system. Over time, there will be less need to access the previous transaction history. As stated above, the live date was May 2, 2015 and taxation staff are using the new property tax system on a daily basis. The 2015 final and supplemental tax bills were issued with the new system and the new arrears statement has a more professional appearance. The new property tax system had two major cost components: implementation and hardware/software cost. The City had to update its Oracle database management software to operate the new property tax system. The upgraded Oracle software is also being used to run other City systems. With the new Oracle software, the City avoided $10,000 in upgrade costs. The total project budget was $400,000 and the estimated final cost is $320,000. The residual balance of $80,000 will be returned to the Financial Systems Reserve. These funds will be applied towards the purchase of a new financial system suite. Property Tax Changes and Opportunities Taxation staff took advantage of the new property tax system to introduce two new Pre- authorized Tax Payment or (PTP) options. These new plans allow for payments on the 8th or 16th day of each month. All plans were converted to a 12 month payment plan in contrast to the 11 month plan. The introduction of the new plans was in response to the many requests from Pickering residents over the last few years, asking for a 12 month plan. The 8th day plan was introduced to meet pensioners' requests to have a plan that would accommodate their pension direct deposit schedule. The 16th day plan was introduced to meet the demand for those individuals who are paid on a mid-month basis. 135 136 FIN 27-15 Subject: Financial System Status Update November 9, 2015 Page 3 To communicate the changes, the Taxation section developed a PTP brochure to. . explain and highlight the changes. In the last two weeks of November, Taxation staff will advertise via the community page section of the Pickering News Advertiser, reminding PTP participants that there is still a December payment. In November, PTP customers will receive their notice outlining their payments for the first six months of 2016. Included in that notice will be a reminder slip regarding the 12th payment in December. Opportunity -Interim Due Dates Members of Council may recall that with the new tax system, the City changed its tax bill format. The new tax bill is larger and easier to read. In addition, the new property tax bill provides the City with an opportunity to expand the number of installments from two to three. During the recent City open house (Doors Open), taxation staff asked Pickering residents if they preferred the interim billing to have two or three installments. The proposal is three installment dates for the interim tax bill consisting of February, March and April in contrast to the current two installment dates of February and April. Taxation staff received a total of 32 responses from the six hour session, of which 26 Pickering residents were in favor of the change. From an interest revenue perspective, the proposed change is basically cost neutral. Future Tax System Projects The TXM vendor is currently working on an electronic property tax bill module that will be available in 2016. This module will be provided to the City at no cost. The 2016 taxation staff work plan is to continue to develop their expertise and knowledge with the new system and to implement the electronic billing module in 2017. Financial System Review and Business Case During this year, Deloitte Consulting Services, undertook an analysis of the City's current financial system. The document is attached to this report. The Deloitte study reviewed the current accounting system and provides several options for the City to consider. The authors reviewed the "Status Quo" option and are recommending that this option not be pursued. The key issues and/or challenges with the current system are: . • The City has 24 separate business applications processing financial information and these systems are not fully integrated, resulting in lost opportunities in efficiency and decision making. • Processes are manual and require significant staff effort leading· to increased cost and financial risk. • Current system reports provide limited informat.ion and do not provide flexible reporting capability for operational and management decision making. FIN 27-15 November 9, 2015 Subject: Financial System Status Update Page 4 • Current financial controls are manually intensive and rely on the experience and reliability of key finance staff. The financial systems plan is to replace the core accounting systems: Accounts Payable, Accounts Receivable, General Ledger and Purchasing. Page ten of the report provides a diagram of the current system and shows the relationship among the various other systems and how they are connected directly or indirectly to the City's financial core. Without the financial systems core, the functionality of the other sub systems is reduced. Next Step The next step in the process is to develop the RFP for a new financial software system. This includes developing a document that would incorporate detailed business and system specification requirements. The Corporation would engage Deloitte Consulting to develop these documents and to manage the RFP process, including selection of the vendor and system integrator. Deloitte Consulting is a valued partner in this process as it has many years experience in the procurement and selection of municipal financial systems. Included in this process will be the option to consider a cloud-based accounting system. The cloud accounting solution is a relatively new system that provides up-front economic benefits. Attachments: 1. 2015 PTP Tax Brochure 2. City of Pickering Finance System Review and Business Case Prepared By: Stan Karwowski Division Head, Finance & Treasurer Recommended for the consideration of Pickering City Council U CJcf 7__J, ~a ;s Tony Prevedel, P.Eng. Chief Administrative Officer -ervices & City Solicitor 137 ....... (.r.) co City of Pickering Corporate Services Department Taxation Section One The Esplanade 2nd Floor Pickering, ON L 1V 6K7 Tax Office: 905.420.4614 Toll Free: 1.866.683.2760 TTY: 905.420.1739 propertytaxes@pickering.ca Office Hours: Monday to Friday 8:30 am to 4:30 pm Drop Box (24 hours): Located at Pickering City Hall (do not deposit cash) City of Pickering Elected Officials David Ryan Mayor Ward 1 Jennifer O'Connell Regional Councillor Kevin Ashe City Councillor Ward 2 Bill Mclean lan Cumming Ward 3 · David Pickles Rick Johnson Regional Councillor City Councillor Regional Councillor City Councillor 2015 Pre-authorized Tax Payment Planv· ' Changes . '-; .. ,/" ~. ~ .•. ,11.-' ·, ·<.~N~·':-' 1' 1' -,! {,•.· . >·!!<'.' .. •·, .• ~. t ,\ .. ,.. /'rJ., ~/ ~-~.::-.! "~'·,:; ' : I· Alternate formats available upon request 905.683.7575 . TTY 905.420.1739 For several years Pickering taxpayers have been asking for a 12 month pre~authorized tax payment plan or PTP. Our new property tax system allows us to offer a 12 month pre-authorized tax payment plan (PTP). All 11 month PTP participants will be moved to the new popularly requested plan. . The following highlights program changes. Example: Property Taxes 11 Month 12 Month 2015 Taxes = $4,800 $436.36 $400.00 ····························································· .................... ·················· January to June (Interim Billing) Calculation Prior year 50% of the Assume 2014 Taxes= $4,722 divided by 11 prior year Calculation Methodology Per Month $429.27 $393.50 Amount Billed in 6 months $2,575.62 $2,361.00 -L Under the 12 month plan, the interim billing (January to June) is capped at ~ 50% of the prior year's property taxes. The old plan did not have a ceiling or ;;! "CAP." Therefore your June PTP withdrawal should be lower than your May 1 sn instalment, and this amount is reflected in the Account Summary/Future Due :C · portion of your tax bill. ~ --~ . ~ PTP Program: r. The PTP program is being offered with two optional withdrawal dates: the -1 8th or the 16th of the month. 0 If you would like to change your withdrawal date from the 1st of the month to the 8.th or the 16th, please email propertytaxes@pickering.ca and provide your roll number and preferred withdrawal date before June 15, 2015. ;.?0 rn P'"ltj 0 ;;.;;:! 1 ~ '.B l --V\ Property Tax Property taxes are the City of Pickering's main source of revenue in providing day to day services and programs to its residents. Pickering continues to have the lowest residential tax rate among Durham lakeshore municipalities. A general rule of thumb for calculating property tax is to multiply your assessed value (or purchase price, if recent), by the current tax rate. For example, if you paid $200,000 for your house, your taxes would be: $200,000x 2015 Tax Rate (0.01280144) = $2,560.29 City Region School Total Property Class % % % Residential 0.38 0.70 0.20 Farm 0.08 0.14 0.05 Managed Forest 0.09 0.18 0.05 Mulli-Residentlal 0.70 1.32 0.20 Commercial 0.55 1.02 1.14 Com ExcessNacant Land 0.38 0.72 0.79 Industrial 0.85 1.60 1.53 lnd ExcessNacant Land 0.55 1.04 0.99 *rounded to 2 decimals Please refer to our website for a __. w co complete list of tax rates. % 1.28 0.27 0.32 2.22 2.71 1.89 3.98 2.58 ,~.--........... -......... - ~:-.:.·.:::.' e §E?]~"§~ .... :::r-=?"::o !::...-:::--.::r:.::::::::~=.;-r-.......... .. -·o = ,.::o ~o i!:fl!) 1. Customer Number (Enhanced Security)- unique identifier for your tax account which must be provided to receive account information. · 2. Property Roll Number -property identification number assigned by the Municipal Property Assessment Corporation (MPAC). If paying property taxes by internet or telephone banking, enter your roll number as it appears on your tax bill (no dashes or spaces). 3. Assessment -Current Value Assessment of your property as determined by MPAC. 4. City Levy-portion of your taxes supporting City services. 5. Region Levy -portion of your taxes supporting Regional services. 6. Education Levy-portion of your taxes supporting education. 7. Final Levies-total taxes for City, Region and Education. 8. Final Taxes -total taxes including special charges/credits. 9. Total Amount Due -total amount due Including special charges/credits. This amount is divided into your instalments, less amounts already billed. Past due amounts are added to the first instalment due date. 10. Instalment Due Dates -instalment due dates and associated tax amounts. 11. Account Summary -summary of your current account status. The Future Due amount includes instalments from this billing and your reduced June 1st instalment. 12. Important messages -about your billing. 13. Explanation of Tax Changes -schedule showing the change in your taxes from the previous year to .the current year and the distribution of the levy charges attributed to the City, Region and Education (as well as changes resulting from reassessment). Schedules for commercial, industrial and multi- residential property tax classes are adjusted for the effect of tax capping, or clawback. For properties that were not taxed in the previous year, this section is not applicable. Visit pickering.ca/taxbill for a detailed explanation. The City of Pickering collects property taxes on behalf of Durham Region and the School Boards and to also fund municipal services. The 2015 property tax allocation for the residential property class is as follows: Property Tax Allocation* II City .i Region l!iJ School *Residential Property Class The City of Pickering's municipal services include 24 hour fire services, recreational programs, libraries, road maintenance, parks, street lights and storm sewers. · The education tax rate is set by the Province of Ontario and local School Boards determine how school taxes are spent. The largest portion of the property tax bill goes to Durham Region for services such as police, maintenance of major roads, waste collection, and transit. The City's 2015 major capital projects include; • Ice Storm Tree replacement • Palmer Bridge deck replacement • Dunbarton Road culvert replacement ..... ~ D·eloitte.,.:,, City of Pickering r=inance Syste a11d Business September 2015 .. ev1ew ase ~~~, -l )> () :r: =< rn z -i F -1 0 ~ "1]1 0 -;;:} :; ~ !;.) ~ I D) 142 m I The Project. The City of Pickering (City) contracted with Deloitte to undertake a review of their finance system (Vailtech) and underlying processes. The assessment of financial processing includes: accounts receivable, accounts payable, purchasing, budgeting and forecasting. As the City is already moving to a new property tax system this area was not specifically considered for replacement. Current Systems. The City has at least 24 separate business applications processing financial information. These systems are not integrated and many are challenged in terms of functionality, reporting and vendor support. A significant amount of "donated labour"* is expended in achieving operating and reporting targets under the current system. In order to further enable the efficient and effective delivery of service, the City needs to modernize their technology landscape, with the core finance system as the anchor starting point. This report provides: • A recommendation that the City would benefit from an investment in a new finance system; • Implementation scope for a new finance system; • The related costs and benefits of a new implementation; and • A brief road map of activities for the City to consider as part of the procurement initiative. • The term donated labour refers to overtime hours that are incurred by management staff but not paid by the City. Management estimates ....... this to be 300 -500 hours a year within the finance department. +:a-© Deloitte LLP and affiliated entities. 4 w _. .J::oo .J::oo verview ((;anti ed) Benefits. Our assessment has identified numerous opportunities for efficiency through process automation, approval workflows, integration, reporting and enhanced, fact-based decision making .. Undertaking a finance system implementation is a significant change effort and requires full organizational buy in. However, the potential benefits are also significant in terms of efficiency, cost avoidance and effectiveness: • Rationalize the number of business applications used to process financial transactions; • Avoid cost of adding new staff to administrative processes as the organization grows; • Automate significant amounts of manual processes and activities with forms automation and system workflows; • Enhance management's capability to lead the business based on timely, reliable and valuable information; • Centralized mechanism to re-deploy manual effort to value added activities such as decision support and continuous improvement; • Rationalize redundant processes and duplicated efforts through enhanced integration of core systems; • Enhance internal controls and better mitigate financial and reputation risks; and • Position the City for taking advantage of technological advancements in the future (ex. mobile functionality) © Deloitte LLP ancl affiliated entiiies. 5 ...... ~ ve 1 ( ti e ) Business Case. The overall investment required is estimated at $3M -$4. 7M in capital over two years, and an increase in the annual operating budget of $200K-$400K (plus inflation) starting in 2017. This investment is necessary to ensure the City is able to provide improved constituent service through its growth period. The City is under-invested in technology when compared to its peers. For example, the City's 2014 IT operating budget is $8.70 per constituent when compared with an average of $17.34. Capital cost over 5 years Operating cost over 5 years Total $3.2M $1M $4.2M $3.6M $2.3M $1.2M $2.3M $4.8M $4.6M • A cloud solution represents a lower capital cost as hardware and related infrastructure is not required. However operating costs are higher due to the subscription fee model based on number of users. • On premise solutions will require both production and backup hardware acquisition . -~:=o © Deloitte LLP and affiliated entities. U1 6 146 ....... tl d m I m m 1n1 ' aroV\tt a "" ti m ~ Ill Cl 1r sm I I I The current financial processing environment presents several limitations to the City's future growth aspirations. Based on current projections the City is looking to add 60,000 residents by2030, representing approximately 67%> growth. In the context of approved development projects the City can expect an increase in transactional volumes, as well as a greater need to enhance operational controls, gain efficiencies, and provide better data for management decision making. 1. Vailtech is not sustainable-the current financial system has reached end of life after 15 years of use at the City. The system's ability to cope with future accounting requirements is limited and would result in further manual workarounds and increased demand on staff. 2. Workflows and approvals are manual -significant effort and paper shuffle is cumbersome to manage, leading to increased financial and reputation risk that is difficult to mitigate. 3. Limitations in budget forecasting for financial commitments-increases risk of over-commitment against project or department budgets and inability to maximize interest income on cash flow. 4. Dispersed information management through "workarounds"-system inadequacies have inspired a proliferation of Excel in all departments, increasing risk of errors and data integrity in addition to efficiency losses . ~ © Deloilte LLP and affiliated entities. 8 -...1 _.. ~'Th City's h 11 D ni ati n of Ul mo cJml i tive tecl#11 olo ( ntinu ) 5. Availability of adequate reporting-current system reports provide limited information and do not provide flexible reporting capability for operational and management decision making. 6. Insufficient automation for managing risk and ensuring financial control-controls are manually intensive and rely on the experience and reliability of key current staff. 7. Lack of meaningful analytics -the burden of effort on simply processing and managing information has reduced capacity for value added analytics and fact based decision making. 8. Capital project procurement practices-Current tools are not user-friendly resulting in manual contract and vendor management practices. © Deloitte LLP and affiliated entities. 9 ar1 m I .. ~ I c ct ~ I I m • ma u rt 1 r:;·t,~'~oi~.~.~·r~,.l.~ted~:sy~tem~···ehvi.·ro.n.m•e·nt:.·•·· ... :.i•··:;;p:.:, ..••••••..••.•. , ... , .... ·· .... · .. · .. •·;· ' \• :24~§ijpar~te appi)cations wan 5lhterfaces to cOre ~ailtech, .· .. · ·• .• : : .: .f ... } The~~e .are. no Interface point~ With a~s~t/property management syst~ms',, ··•·. ·. ' . ..·.··• .... ·.· ... · .. ····• , Miord,s6ft Excel Used as a ~or~ tool for meiintenahc~ ahd tracking 6ffac1Htles ahd linear assets~ t·Limlt~d eap~bliltyjotrep6din~ and ~hhanceddeolslon making ... · ...• ,·.•• ··i · , .·.··· ..... . . . . . ..... • There Is no one VIew of oapltal assets with different levels .of ln~orn1ation store~~~ CityWide ande~oel spreadsheets. • There is no automated pr~Jeot aoMLmting capability. ··.-~· ·~ ~ ..j:::o. © Deloitte LLP and affiliated entities. co Group Techna (parking and by law) Constituent management svstems DRAFT ( Administrative applications ] 10 ..... (]1 0 ve t cJ in t c nol y wher~ 11 ity is un "' r-1 (; pared Deloitte compared the City's operating and capital spend on information systems against comparable municipalities in Ontario. The data is gathered from publically available sources and classifications of spend may differ across municipalities. The municipalities include: • Niagara Falls;. • Clarington; • Chatham-Kent; and • Ajax. The table below demonstrates that the City is below average in all four financial metrics measured indicating an underinvestment in technology. It is noted that one of the comparator municipalities has undergone a recent ERP implementation which results in higher capital and operating investments in IT. 2014 IT capital budget/constituent $4.32 2014 IT operating spend as a% oftotal operating budget 1.90% 0.47% 2014 IT capital spend as a % of total capital budget *Chatham-Kent is completing an ERP implementation and had high amounts of capital IT dollars allocation in 2011-2013, however 2014 dollars are minimal as the transition completes and costs shift to operating © Deloitte LLP and ·affiliated entities. .,., ....... m r1s m I t m I isti n I a system Maintaining the status quo exposes the City to various operational and financial risks. Municipal organizations can be tempted to direct funds towards constituent facing projects while neglecting administrative systems. However this approach comes at its own cost. • Financial risk of error and fraud-manual internal controls have been developed to compensate for lack of system functionality. These controls are person dependent and susceptible to turnover risk. • Escalating costs to serve and administer-direct correlation of population to staff growth will continue to increase operating budgets. • Contract management risk increases-vendor contracts will grow in size and volume without a system to manage vendor performance and compliance. This risk is most relevant in the context of the City's manual and decentralized capital project accounting practices. • Key person dependency risk increases-manual process workarounds rely heavily on the person processmg. • Manually intensive financial processing and reporting -the City relies on significant amounts of unpaid overtime labour from key management staff to achieve internal and external reporting objectives. • Finance system failure -inevitably, the system will fail to meet requirements and the fix/upgrade will be challenging with costs substantially higher than a planned replacement. c.n © Deloitle LLP and affiliated entities. 12 ....... ....... 01 N .. roJ ·t ,, n Ill 1n nc m n The most desired benefit is to have a consolidated and integrated Finance system environment that will enable data capture and transaction processing at the source, with enhanced integration of operating and administrative systems. • Allows for routing of transactions through a hierarchy for approvals. • Provides work lists for users. • Leverages email notifications for approvals. • Official ledger of the City for financial data with commitment control and encumbrances. • Department applications will interface financial information on a more timely basis. • Automated controls are more reliable than manual. • Ability to segregate key activities and route approvals. • Enables data capture at source, with routing for validation and approvals. © Deloitte LLP and affiliated entities. • Consistent service delivery to departments.; • Easier for training, mobility of resource. • Automated processes are more reliable and timely. • Less manual intervention between systems. • Less d~ta aggregation in "side" systems. • Consistent data definitions and attributes. • Drill down reporting capability. • Statistics ledger for KPis and dashboards. • Decentralized report writing/analytics. 13 _., n iti r c Finance management and staff believe that system implementation would result in operational improvement and have a positive impact on the broad organization including reduced risk, increased controls, efficiencies, more reliable data and enhanced reporting capability. Across the organization the desire for change is driven further by a need to streamline purchasing processes and enhance project accounting capability. Value proposition: ·In the principal areas of focus (AP, AR, GL, Purchasing), there is a general belief that modernized systems are necessary to continue to support growing demand, become more efficient and provide the platform for growth. An understanding of the rationale and benefits of a new system will need to be shared/adopted more broadly. Stakeholder readiness: There is little stated or overt change resistance and a broad willingness to participate in early-stage assessment efforts. Once a go- forward decision is made, stakeholder interests will need to be considered where the solution may impact outside of Finance. While support for standardization and process improvement exists, there is an entrenched way of doing business that will have to be addressed in the change plan. Competing Priorities: The ability to ensure organizational commitment to a finance system implementation will be critical to its success. This will include aligning resources and decision making processes. • Communication planning. • Linking project to strategy and broad organizational benefits. · • Realistic expectation setting. • Communication planning. • Cross-functional project governance. • Change readiness checkpoints with key stakeholder groups. • Develop plans to engage broad stakeholder groups in project design through implementation. • Role impact assessments. • Common project oversight and management group. U1 © Deloitte LLP and affiliated entities. w ~ 14 __. (}1 ..r:=. ter R .. 1n1 g • There is a need for new technology to enable the efficiencies in processing and increased effectiveness of reporting and decision support, therefore a formal RFP process is required to evaluate potential solutions. -The City should conduct an RFP for a solution rather than just the software, as this provides for comparable assessment of total cost of ownership, and can allow for better planning and budget estimating prior to contracting for the software license. • For this business case, we have assessed the options on the following slide, estimating costs and benefits only for option 3 and 4, as there are more available data points, and it provides a high watermark of cost and benefits. -The RFP process will allow further assessment of options 2,3 and 4, with lower costs expected through a competitive process. -As the cloud marketplace is evolving rapidly, costs and benefits for option 4 are given based on 2014 price and contract structures. The City should assess vendor maturity and total cost of ownership considerations as part of the future procurement process. -This business case should be updated prior to implementing the selected solution. © Deloitte LLP and affiliated entities. 15 ~ g I I Manual controls, not scalable, usability challenges. MODERATE Municipalities have faced issues with mid-market applications due to breadth of requirements. LOW Mature products with multiple municipal installations, available skills in marketplace. HIGH Less proven, dependen_cy on service provider, few municipal examples. ....... c.n © Deloitte LLP and affiliated entitiElS. (.TI NEGATIVE Manual workarounds will continue. MODERATE Functions, features and benefits better align with Tier 1 providers. HIGH High degree of automation, integration, self service and ability to rationalize existing business applications. MODERATE Expanding functionality is quicker, high degree of automation, municipal functionalitv is not mature . n I Staff growth with increase I Not a Viable in transaction volume. (ie. option. Capital) MODERATE Software less expensive, Evaluate further services appear to be lower during RFP but usually under-process. estimated. HIGH More internal and external resource required, Evaluate further considered an investment during RFP for 20 years, not process. replacement again in 1 0 years. MODERATE Less capital investment, Evaluate further during RFP more operating cost impact, process. nimble platform. 16 156 "0 ~ 0... .....J .....J ...... I I tati t The intended scope is to replace Vailtech with new core finance system including general ledger, accounts payable, accounts receivable, and purchasing modules. A new property tax system as been acquired from the City of Mississauga which has already been integrated to core finance modules in other municipal environments. The desired outcomes and benefits from a new system are highlighted below. 1. Faster, better reporting -refreshed tools and reporting environments for leaders and end users. 2. Automated approvals-automated workflows, approvals and controls for users within the selected system. 3. < Commitment accounting-new accounting structure with Commitment Accounting to improve budget management and timeliness of financial reporting for departments such as: a) Enhanced integration-with deparlment applications, including Citywide, budgeting, recreation, properly tax, and future capital asset management systems where real time integration will be required for commitment accounting; b) Drill down reporting-integration with detailed payroll data for enhanced drill down and analysis; c) Simplified accounting structure-development and conversion of a new charl of accounts; and d) Comparative reporting-conversion of prior and current year budget and general/edger transactions . c.n © Deloille LLP and affiliated entities. 18 -.I ...... ~~m (c lemc~ntati ntinu ) s 4. Enhanced vendor management-integrated Payables, Purchasing, Inventory, Vendor Management and Contract Management to improve the overall efficiency and effectiveness of non-salary spend. 5. Improved stewardship of capital-integrated Capital Projects and Assets to improve stewardship of the City's assets and capital spend (dependent on future asset management planning) . . 6. End user focus-deployment to end users with training, communications and post go-live support. © Deloitte LLP and affiliated entities. 19 u R I iti I s I Ill I • The City has currently allocated $3,000,000 in its capital budget for 2017. To support a conservative budgetary estimate, we are basing the budget on a Tier 1 or Cloud Solution. • In addition, the City should consider operating budget impacts to ensure the system is adequately supported and kept current over its lifetime. • The most significant capital budget item is the implementation cost. These costs include configuration, data conversion, change management, and project management. Given the significance of the change the City should ensure that they are adequately supported through the implementation. JD Edwards Estimate Capital cost ~s>J~ar~li9.!:!!1§~------·-·-·----------_1]_5.,QQ_QJ)Q _______________________________________________________ _1_75,_Q_OO.OOfj_n!J_IlC:i?LanciPL![CtJ!JS.if19_11l()..cill!~-- lncludes production and disaster recovery Hardware acguisition 450,000.00 450,000.00 900,000.002022 cost for hardware refresh Implementation 1,200,000.00 1,200,000.00 IT_r2[1:ll!lg...CI.!:JQ__q_ertificatipn ______________ _jQQ, OOQ_il_O __ _ _______________________ 1__QQ,Q_Q_Q,OO ___ _ ~glementation (internal) 400,000.00 400,000.00Finance and IT backfill SUJ:lQ.O_!l __ _ I<:;..Qntir}g~ncy __ (1Q~) _______________ ~_3-~_~Q_._Q_Q__ _______________ · ----------------------------------------~g-~Q_Q_,QO ______ _ 1P~e-im!-)lementation cos~s 15Q,OOO.OO. .••. ... .. _ ...... _. -••-· . • > .. . ····•·•·'· .. ··•···· ... · .·.•· .... · . .· • / >. • c .. ·· ....•• ·.. . . . . .. . . _.. 150 000.00Readiness, RFP/J:Jrocurement SUJ>J:l<Jr:t 7:91~L!=~IJltt!L; i~·--~~·-~·-~:..L~L...:J~Q!Qg~Q.,._Q_QJ~~~[l,~Q9.J.90.:1~"---···'·c·--·=~ .. " $: .. ~.;.; "'~;.~~~~.:.:::.:;:.L~~~=·~·-~· ~··. ·clC.~::c':~! ••.• A:~Qt9Q.Q;QQ.=tJ.tt~.!&IJ .. 0::..:..0=9:c..c: _________ _ Qr.~..r:'!!i!!.9~q~_L_________________________________ ----·---·------------------·----------------------------· ·- Software maintenance 37,840.00 39,353.00 40,927.00 42,565.00 44,267.00 46,038.00 250,990.0022% of software license+ inflation §_t;!Qf?_Q~t_~j.§!L_~---.. -.. · -~.-:T ., ~.Q,,9_Q~Q,Q__~_§Q,QQ9~Q~_1~Q,,QQO. QO ~~c--1~Q.c9,Q0.00. '·.••·•·.·· .. ·.··150,QQ,9.c 00. --.. -••. 1§Q,QQ_QJJO. . -c-~_9j!,Q_C!9.,Q9 __ 1_:: _ _2 F~~!!_dditio,_n""a,__l __ TfJtf!l .. Q.P~['!!/.rJfl •........... ""'''''·'"wj_,, .:,.,,l,,,,,,,,' ...... ~z~.~-4.9.i~Q."1'''"'"~-"~-~1..35~&1!":lw.~•1~.Q~~2 .. "9JL[,,J.~?..t~l.~§&Q,j"'JJ1.4.;?~I~.!tQ.:.$ .. ,: .. , .. ,~.~§.i.Q.~~~,QQ: •. 1.J .. ;MQ;~,~Q .. Q,Q.• -------- ~JH~J1\~M~.fi~J:!IJ:\fl~'~f!Kl11J~~~j~~~~l~·§,~~~QP,~.!;PWf~T~~:~n1~APIQ~.~~n~~rn.I'~Mtgi~:~;~J,~~lt~"gl~~i1!M!lt.;$J®~";~,~~M~1P91i,~JU~~,i~.~~-~§l@~~f~Jli!~~4J!~ID~J!;~[-J!i~I'~M~~~pJQ:!i.ll..' __________ ______j c:.n © Deloitte LLP and affiliated entities. co 2.0 ...... en 0 u (c t i nti n tJ PeopleSoft Estimate Capital cost ) cts _,_ tr iti r·1al I uti n '§ioftw_?~E!?~!J.~e_ ----· 260 000.00 _______ . ________________________ 1§_Q,.Q_O_Q,QQ_flll_'!.r1~ial C!!J<!.I2!:'.~9..~?.§ill.9 .. fl:lodules _ Includes production and disaster recovery Hard~are _9cguisition ·------'-45Q,OOO.Q9_ ---------------·-· 45_Q,QQQ_,_OO 90_Q,_QQ9..:...Q92022 cos!_for_hardwa_!:..~efr~sh 1 ilr!!J:>Iementation !Training and 1,500,000.00 1,500,000.00 QE:l.l:tJfig?tio_rl _ 1 00,000.00_____________ _ ____________________ 1_QQ.t!)OO.OO Implementation internal} 400,000.00 400,000.00Finance and IT backfill su[Jport 1 Q9J:!!i_ng_E:!_119YJ1..0~)__ 285,000.00 ___ 285,QQ9.00 ---------------·---- Pre-implementation Readiness, RFP/procurement go_sts 150,000.00 150,000.00sul?.2ort t~tfilL~ili!Lt~L.•··.····,;::····.•··•··J:;;~:.]t&,Q;QQQ,.QPit1,_!!lt&O.o,.QQJ21L::i-'"'L .. :•:' .<C .• t.L$.:L:Li .. :. ;L.~i~:Li£":.U•········•····•···•.·:•.··•••·•·:•·'::L;cc;;,;L$iLtd!.±Ud1Li.::t.·.~.$ ... :.:.~§.Q.;.Q.Q.Q~Q!L$L~&~.1.:;QQ.Q;_~QJ ~--------~~ -"-·---~~---·-~·------~--------~-----------------·------- Qeerating cost 1 Software maintenance 57,200.00 59,488.00 61,867.52 64,342.22 66,915.91 69,592.55 379,406.2022% of software license+ inflation §.l.le!='ort staff ·.· .. :>:,· .· ... : .. ·> . . .i.... . . . < 50 000.00 .··. 150,000:00 , 150,000:Q? ,150,000:00 150,000.00 150,000.00 . 800,000.00 1-2 additional FTE ------1~ tf!la.L~e!Jratirj_iJ;;.~ .... Lik·..c;ci~.~~.-~ •• ~ .1 0~;2oo:og~~$.· .. ·2o9,4s8.Qo•: .. $. '21.1 &~_1::&E$ g_14t342;22 :$ .. : .. :216t91.§.l91iLL•_219,5.~_2,55 .. t:L.!I~~~o6.20 : © Deloitte LLP and affiliated entities. 2'1 ...... en ...... u M I I sol " I • The following quotation is based on available pricing from leading cloud solution providers. Given that the marketplace for cloud solutions continues to mature, pricing models may vary by the time the City is ready for implementation. • Costs for cloud solutions are similar to traditional ERP solutions with the primary differences being: No local hardware or disaster recovery site management; -Costing is based on a per user or transaction subscription fee model vs the traditional software license and maintenance fee model; and -Support staff resources are typically required in finance, as opposed to IT. Traditional on-premise solutions typically require system and database. 1.500.000.00 100 100.000.00 000.00 165.000.00 RFP/procurement 1 -2 additional FTE ..... CTl f',) u t i """""""' tl i II \tin s I i r1 Although the costs involved are significant they represent the amounts necessary to bring the City's finance technology in line with municipal peers. The table below reflects how the comparator metrics shown above on slide 10 are impacted by the system implementation. • The budgetary impact during the implementation year greatly increase the capital budget/constituent ratio given high one time costs. • Operating budget/constituent remains lower than the comparator average. • Overall metrics show a closer alignment with the comparator average at post-implementation, however remain at the low end of municipal peers. This may be attributable to technology gaps in areas outside of finance. Comparator averages are likely to increase with inflation. .70 13.93 IT capital budget/constituent .14 .25 3.81 IT operating spend as a % of total operating budget 1.30% 2% IT capital spend as a % of total capital budget 0.36% 4% 5% Key notes/assumptions: • 2017 metrics are based on the City's current population (2011 census). • 2022 metrics are based on forecasted population growth (60,000 increase by 2030; assuming linear growth). • 2022 represents the year the City would invest in a hardware refresh if an on-premise solution is selected. • Total operating and capital budgets in 2017 and 2022 are based on 2014 budgets plus 4% inflation and increase in system implementation costs only (other factors impacting total budget increases have not been included). City of Pickering -Finance System Business Case (DHAFT) 23 ....... I r1·1 I ti I .. I I I The City will need to identify resources for the following project roles, drawing from central Finance and . Finance support staff in the departments. Some roles will need to be dedicated and fully backfilled, while other roles will require participation on an "as needed" and scheduled basis for key workshops, testing and training activities. Steering Director/Treasurer level. 8 hours/month, scheduled Project progress reporting, issue resolution, Committee meetings. oversight and governahce. Project Finance and IT manager 35 hours/week, fully Hands-on project management of functional backfilled and residing in Management level. project team office. and technical project components. Project Advisory Managers from operational 15 -25 hours/month, Design workshops, decision making input, departments and central scheduled workshops and Group Finance meetings. issue resolution, testing oversight, training. Project Team Analysts, staff from 35 hours/week, fully System design, configuration, testing, data operating departments and backfilled and residing in conversion, integration, user access Members central Finance. project team office. requirements, training and sustainment. Subject Matter Analysts, staff from 15-25 hours/month, Provide input to design, conversion, testing, Experts operating departments and scheduled workshops, training; lead for deployment into operating central Finance. activities and meetings. department. en © Deloilte LLP and affiliated entities. w 24 ........ en ~ 11\..1-·stf~os fo Fin nee syste · implementati 1. Develop detailed business requirements for finance system modules in scope. 2". Consider procurement options and begin development of the RFP for a Finance Management System solution (i.e. Technology then Implementer or together). 3. Develop a project resourcing plan, including strategy for backfilling. 4. Present business case to council for approval of capital. 5. RFP process to select an System Vendor and System Integrator. 6. Contract awards and negotiations with vendors. 7. Implementation of a solution in 2017. © Deloitte LLP and affiliated entities. ,.~f."' .c.o ...... D~eloitte~~ Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services. Deloitte 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. The information contained herein is not intended to substitute for competent professional advice . en © Deloitte LLP and affiliated entities. U'l