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Home My WebLink AboutJune 20, 2016 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, June 20, 2016 Council Chambers 2:00 pm Chair: Councillor Johnson 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. 2 FIN 10-16 June 20, 2016 Subject: 2015 Year End Page 2 liabilities. As there were no debenture proceeds in 2015, long-term liabilities were reduced by the annual principal repayment. Expenditures were well within budget. The revenues reported in the Consolidated Statement of Operations are the combined revenues for operating and capital purposes. As a result, variances between budget and actual arise due to the timing of approval in the capital budget as compared to the actual receipt of funds/recognition of revenue. The large reduction in operating revenue from the prior year is due to the $18.9 million gain on disposal of tangible capital assets reported last year that primarily arose from the sale of land in Duffin Heights. Overall, the City's financial position is healthy. A strong balance sheet provides assurances to the City's .lenders, bankers, ratepayers and businesses that the City is able to meet its finanCial commitments. In regards to the reappointment of the auditors, there will be no additional costs beyond the budgeted amount included in the 2016 Current Budget as the auditor has indicated they would be willing to hold their fees at the 2015 level for the 3 year term. Discussion: The audit of the consolidated financial statements for the year ended December 31, 2015 has been completed. The auditor's Report to the Executive Committee is included as Attachment 1. This Report, prepared by Deloitte, summarizes their findings from the December 31, 2015 audit and comments on significant matters regarding the audit. Appendix 1 provides a summary of communication requirements which Deloitte is required to bring to Council's attention. The independence letter in Appendix 2 confirms that Deloitte is independent from the City. The scope of the audit does not include an in-depth evaluation of all systems or internal controls; however, the auditors may report on matters that come to their attention during the course of their review. Appendix 3 provides management letter comments and recommendations along with Management's responses. During the course of any audit, auditors may find misstatements that may or may not be adjusted due to materiality. For 2015, no significant corrected or uncorrected misstatements arose from the audit. The draft Audited Consolidated Financial Statements are included as Attachment 2. These statements are the responsibility of management and have been prepared by City accounting staff under the direction of the Division Head, Finance & Treasurer. The auditors are responsible to express an opinion on these Consolidated Financial Statements based on their audit. An unmodified audit report has been issued. The Consolidated Financial Statements include the activities of the City of Pickering Public Library Board. The City's investment in Veridian Corporation is accounted for on a modified equity basis, which means the City includes its sha.re of Veridian's income or loss in the Consolidated Financial Statements. F!N 10-16 June 20, 2016 Subject: 20i 5 Year End Page 3 The Consolidated Financial Statements are prepared on the full accrual basis in accordance with Canadian Public Sector Accounting Standards (PSAS), which includes reporting tangible capital assets. Tangible capital assets, such as land, building, infrastructure and equipment are capitalized (recorded) at cost on the Statement of Financial Position (Balance Sheet) and amortized (depreciated, except for land) over their estimated useful lives in current operating expenses. The Statement of Financial Position includes tangible capital assets under the non-financial asset section and shows in Accumulated Surplus. This is different than the City's budget, which notes these capital items as expenditures. Statement of Financial Position (Balance Sheet) Financial assets are those assets which could provide resources to discharge existing liabilities or finance future operations. The City's financial assets increased by approximately $7.7 million. As the increase in liabilities was minimal, this led to an increase in netfinancial assets of $7.4 million over the prior. year. The increase in financial assets is primarily due to the following: • Increase in Cash and Cash Equivalents • Decrease in Accounts Receivable • Addition of Note Receivable for Pickering Soccer Club The increase in Cash and Cash Equivalents is due to timing of receipts near the end of the year such as Veridian 4th quarter dividend received mid December and supplementary taxdue dates on November 30th and December 29th_ The prior year accounts receivable balance included $1.5 million from York Region for . the semi-annual funding of capital projects per the SEC agreement. Also the Region and School Boards due to/from account balances were a receivable in the amount of $1.2 million. For 2015, the semi-annual amount owing from York Region was only $160,000 due to the timing of capital project costs. The Region and School Boards balances were liabilities due to the timing of supplementary taxes combined with minimal write-offs during the year. Pickering Soccer Club (PSC) is funding a portion qf the construction of the Indoor Soccer Dome. The term for payment is 15 years with 2015 being the first instalment. Therefore a note receivable was set up for the PSC in 2015 for its share of the land and construction costs. Non-financial assets include tangible capital assets which is the net book value (cost less accumulated amortization) of City-owned assets including land, buildings, roads, bridges and sidewalks infrastructure, storm sewer infrastructure, furniture and fixtures, vehicles and equipment. Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. Note 11 of the Financial Statements provide a summary of the City's tangible capital assets. The December 31, 2015 gross book value of assets is $426.7 3 4 FIN 10-16 June 20, 2016 Subject: 2015 Year End Page 4 million and, after adjusting for amortization, the net book value of the assets is $215.7 million. In other words, the City has consumed a substantial amount of the life of its assets. Future capital budgets have taken into consideration the investment into and the maintenance of the City's infrastructure base as a financial priority. Statement of Operations (Income Statement} Revenue reported includes both operating and capital. Therefore, variances between budget and actual may arise due to the timing of approval in the capital budget as compared to the actual receipt of funds/recognition of revenue. This is clearly illustrated with the following revenue items: e Government grants and fees • Development charges and contributions earned The budget amounts represent grant funding, including Federal Gas Tax, and development charge (DC) funding of 2015 capital projects. The actual amounts reported primarily reflect grant and DC funding for capital projects approved in prior year budgets because of the timing difference between when a project is approved in the budget and when it actually commences. The capital budget expenditures do not show on the Statement of Operations as capital expenditures. For those expenditures that meet the definition of a tangible capital asset (TCA), the cost is reported onthe Statement of Financial Position (Balance Sheet). Only a portion of the asset's cost is included as an amortization expense each year over the life of the asset in the operating expenses reported on the Statement of Operations. The amortization expense is included in operating expenses for the asset's respective functional category, For example, amortization on a fire truck is included under the Protection to Persons and Property category. Capital budget expenditures that do not meet the TCA definition are included as operating expenses under the appropriate functional category. The budget figures reported need to reflect the change in reporting for capital budget expenditures to be compliant with Public Sector Accounting Standards. Note 19 of the City's consolidated financial statements reflect the changes made to the 2015 Council approved budget to put it on a basis consistent with the full accrual basis of accounting. This means excluding capital expenditures that are deemed tangible capital assets and . including amortization. Actual expenses are under budget in all functional areas. This illustrates City staff's commitment to controlling expenditures. There is not one specific area that stands out as a major contributor to the overall underage. The underage is reflected throughout the various cost centres. Expenses are also in line with prior year amounts. FIN 10-16 June 20, 2016 ·Subject: 20l5 Year End Page 5 Accumulated Surplus The components that make up the Accumulated Surplus are disclosed in Note 12 of the City's consolidated financial statements and are summarized below. An accumulated surplus is the amount by which all assets (financial and physical) exceed all liabilities. It must be emphasized that these amounts are not surplus funds in the traditional sense. In other words, there is no City bank account that has a balance of $331.0 million. An accumulated surplus indicates that the City has net resources (financial and physical) that can be used to provide future services. What primarily contributes to this balance are the net tangible capital assets of approximately $215.7 million and the City's equity in Veridian Corporation of approximately $77.1 million. The accumulated surplus is comprised of the following: Operating fund Capital fund Reserves and reserve funds Equity in Veridian Corporation Tangible capital assets Note Receivable Post employment benefits liability WSIB benefit liabilities ·Internal loans Net long-term liabilities Reappointment of Auditors 2015 $ 125,227 16,328,274 46,097,918 77,114,119 215,670,460 4,306,294 (4,484,800) (1 ,773, 1 00) (4,454,354) (17,717,530) $331,212,508 2014 $ 125,219 16,042,591 46,772,458 76,374,399 214,410,833 (4, 176,300) (1,741,900) (4,015,538) (20,475,769) $323,315,993 Deloitte was last appointed to conduct the statutory audits for the 2011 to 2015 fiscal years. Experience in the public sector, specifically municipalities, range of other services available and knowledge of the client are important considerations for appointment of an auditor. Deloitte is one of the largest public accounting firms in Canada and has vast experience within the municipal sector. They provide a variety of auditing, accounting and advisory services to a number of municipalities including 6 of the 8 local municipalities and the Regional Municipality of Durham. The services provided by Deloitte have clearly demonstrated proficiency in the municipal environment, particularly Public Sector Accounting Board (PSAB) standards and guidelines. Their comments and assistance is always relevant and practical. Based on experience to date, the firm has provided an excellent level of service at a reasonable cost. Deloitte has agreed to hold their fee at the 2015 level for the full 3 year term. Staff is recommending that Deloitte be reappointed for a 3 year term. 5 -------~---------- i'tte The Corporation of the City of Pickering Report to the Executive Committee on the 2015 audit (X) May 24, 2016 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: Report on audited annual financial statements Deloitte LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 6L7 Canada Tel: 416-601.-6150 Fax: 416-601-6151 www.deloitte.ca We are pleased to submit this report on the status of our audit of the consolidated financial statements of the City of Pickering (the "City") for the 2015 fiscal year. This report summarizes the scope of our audits, our findings and reviews certain other matters that we believe to be of interest to you. We expect to issue our Independent Auditor's Reports on the financial statements of the City, the City of Pickering Library Board (the "Library") and the City of Pickering Trust Funds (The "Trust Funds"), upon approval of the financial statements. Our audits were conducted in accordance with the audit plan-dated October 22, 2015. This report is intended solely for the information and use of the Executive Committee, Council, management, and others within the City and 1s not intended to, and should not be, used by anyone other than these specified parties. Accordingly, we disclaim any responsibility to any other party who may rely on it. We would like to express our appreciation for the cooperation we received from manage'tnent and the employees of the City with whom we worked to discharge our responsibilities. We look forward to discussing this report· summarizing the outcome of our audit with you and answering any questions you may have. Yours truly, Chartered Professional Accountants Licensed Public Accountants c.o Contents Our audits explained ................................................................................................... 1 Audit risks .................................................................................................................... 4 Significant accounting practices, judgments and estimates ....................................... 6 Other reportable matters ............................................................................................. 8 Appendices Appendix 1 -Communication requirements Appendix 2-Independence letter Appendix 3-Management letter comments © Deloitte LLP and affiliated entities. The Corporation of the City of Pickering-Report to the Executive Committee on the 2015 audits Audit risks Revenue recognition* Audit risk Assurance standards include the presumption of a fraud risk involving improper revenue recognition. (Revenue/deferred revenue). Management override of controls* Audit risk Assurance standards include the presumption of a significant risk of management override of controls. Management is in a unique position to perpetrate fraud because of management's ability to directly or indirectly manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. Our audit response • Significant revenue streams are a presumed area of audit risk. We will test the design and implementation of controls in these revenue streams and perform substantive analytic procedures and detailed testing in these areas, and • Substantive testing to determine if restricted contributions (i.e., development charges), and government transfers have been recognized as revenue in the appropriate period. (Revenue vs. deferred revenue). Our audit res pons~ To address the risk of management override of controls we will: • Engage in periodic fraud discussions with certain members of senior management and others • Consider the potential for bias in judgments and estimates, including performing retrospective analysis of significant accounting estimates • Evaluate the business rationale for any significant unusual transactions • Evaluate the City's fraud risk assessment and consider entity-level internal controls and internal controls over the closing and reporting process, and • Test journal entries that exhibit characteristics of possible management override of controls, identified using manual techniques. Audit results We obtained sufficient audit evidence in this area and are satisfied with the results of audit procedures performed. Audit results We obtained sufficient audit evidence in this area and are satisfied with the results of audit procedures performed. *These areas have been identified as areas of significant risk. © Oeloltte LLP and affiliated entitles. The Corporation of the City of Pickering-Report to the Executive Committee on the 2015 audits 4 Management estimates Audit risk Estimates require management judgments (i.e., provision for significant property tax appeals, contingent liabilities, estimated accrued liabilities, etc.) Our audit response • Obtain documentation on management's controls over the development of accounting estimates for any significant management estimates and assess risk • Focused review of calculations and support • Discussions with management • Analytic review of related accounts, and • Assess outcome of retrospective review of estimates from prior years. Implementation of new Property Tax System (TXM) Risk identified Implementation of new tax system required conversion of data from Vailtech Tax to TXM as well as new interfaces and access controls Our audit response • Test data conversion results, reconciliations and management reviews and sign offs over data migration • Test on a sample basis, ·completeness and accuracy of data migrated • Test access controls to selected high risk or critical transactions and segregation of duties between key roles, and • Test key interfaces for completeness and accuracy (i.e. interfaces from TXM to the general ledger). Implementation of PS 3260-Liability for Contaminated Sites Risk identified Appropriate implementation of PS 3260- Liability for Contaminated Sites which is effective for years commencing on or after April1, 2014 Our audit response • Obtain inventory of all sites and management's analysis and assessment of applicable sites. • Test for completeness • Test sites to criteria in PS 3260 • Test valuation of liability for relevant sites, if applicable • Test accounting applied for adopting the new standard (i.e. prospective or retrospective application), and • Review related financial statement disclosures for accuracy and completeness. Audit results We obtained sufficient audit evidence in this area and are satisfied with the results of audit procedures performed. Audit results We obtained sufficient audit evidence in this area and are satisfied with the results of audit procedures performed. Audit results We obtained sufficient audit evidence in this area and are satisfied with the results of audit procedures performed. © Deloit!e LLP and affiliated entities. The Corporation of the City of Pickering-Report to the Executive Committee on the 2015 audits 01 Significant accounting practices, judgments and estimates The accounting policies of the City, the Library Board and the Trust Funds are set out in Note 1 of their respective financial statements. In the course of our audits of the financial statements, we considered the qualitative aspects of the financial reporting process, including items that have a significant impact on the relevance, reliability, comparability and understandability of the information included in the financial statements. Significant accounting policies During the year ended December 31, 2015, the City implemented PS3260, Liability for Contaminated sites. Further information relating to this implementation is disclosed in Note 2 of the City's financial statements. The implementation of this new standard did not have any impact on the financial position or results of operations of the City. There were no other significant changes in previously adopted accounting policies or their application at the City, the Library Board or the Trust Funds. In addition, effective January 1, 2015, Veridian Corporation (Veridian), which is owned 41% by the City, was required to transition to International Financial Reporting Standards (I FRS). As a result of Veridian's transition to the new reporting framework, the consolidated financial statements of the City were restated to reflect the impact of Veridian's transition to I FRS on the City's financial statements. Further details can be found in Note 2 to the consolidated financial statements. In our judgment, the significant accounting practices and policies, selected and applied by management are, in all material respects, acceptable under PSAS for the City and the Library Board, under Accounting Standards for Not For Profit Organizations for the Trust Funds and are appropriate to the particular circumstances of the City, the Library Board and the Trust Funds. Management judgment and accounting estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. These judgments are normally based on knowledge and experience about past and current events, assumptions about future events and interpretations of the financial reporting standards. During the year ended December 31, 2015, management advised us that there were no significant changes in accounting estimates or in judgments relating to the application of the accounting policies other than a change in the method of recognizing revenue for inspection fees. The new method recognizes revenue from inspection fees based on certain milestones estimated to reflect when inspection fees are earned. © Oeloitte LLP and affiliated entities. The Corporation of the City of Pickering-Report to the Executive Committee on the 2015 audits In our judgment, the significant accounting estimates made by management (with assistance from the City's actuary as appropriate) are, in all material respects, free of possible management bias and of material misstatement. The disclosure in the consolidated financial statements with respect to estimation uncertainty is in accordance with PSAS and is appropriate to the particular circumstances of the City. Significant estimates include: Post-employment benefits liability WSIB benefits liability Allowance for doubtful accounts Provision for assessment appeals Accrual for retroactive pay © Deloitte LLP and affiliated entitles. $4,663,800 $1,773,100 $385,222 $863,819 $356,553 (2014-$4,355,300) (2014-$1 ,7 41 ,900) (2014-$385,222) (2014-$326,539) (2014-$395,000) The Corporation of the City of Pickering-Report to the Executive Committee on the 2015 audits Oth·er reportable matters The following summarizes the status and findings of key aspects of our audits. In the appendices·to this report, we have provided additional information related to certain matters we committed to report to the Committee as part of the audit plan. Changes to the audit plan Significant difficulties encountered in performing the audit Related party transactions Disagreements with management Consultation with other accountants Legal and regulatory compliance Post-balance sheet events © Deloitte LLP and affiliated entities. Comment The audits were conducted in accordance with our audit plan, which was communicated to the Committee. We confirm that there have been no significant amendments to the audit scope and approach communicated in the audit plan. We did not encounter any significant difficulties while performing the audits. There were no significant delays in receiving information from management required for the audits nor was there an unnecessarily brief timetable in which to complete the audits. Related party transactions or balances have been properly disclosed in the financial statements. We have not identified any related party transactions that were not in the normal course of operations and that involved significant judgments by management concerning measurement or disclosure. In the course of our audits, we did not encounter any disagreements with management about matters that individually or in the aggregate could be significant · to the financial statements. Management has informed us that the City and the Library Board has not consulted with other accountants about auditing or accounting matters. Management is responsible for ensuring that the City's operations are conducted in accordance with the laws and regulations applicable to the City. The responsibility for preventing and detecting non-compliance rests with management. The auditor is not and cannot be held responsible for preventing non-compliance with laws and regulations Our limited procedures did not identify any areas of material non-compliance with laws and regulations by the City, the Library Board and the Trust Funds. At the date of finalizing this report, we are not aware of any significant post balance sheet events that would require adjustment or disclosure in the financial statements at December 31, 2015. The Corporation of the City of Pickering-Report to the Executive Committee on the 2015 audits (X) Appendix 1 Communication requirements The table below summarizes our communication requirements under Canadian GAAS and other communications that we believe would help us achieve an effective audit. We confirm that all required communications have been reported in our audit service plan and year end communication. Required communication Audit service plan 1. Our responsibilities under Canadian GAAS, including forming and expressing an opinion on the financial statements 2. An overview of the overall audit strategy, addressing: a) Timing of the audit b) Significant risks, including fraud risks, and c) Nature and extent of specialized skill or knowledge needed to perform the planned audit procedures related to significant risk. 3. Significant transactions outside of the normal course of business, including related party transactions Year end communication 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 audit 10. Material written communications between management and us, including management representation letters 1 CAS: Canadian Auditing Standards-CAS are issued by the Auditing and Assurance Standards Board of CPA Canada © De!oitte LLP and affiliated entities. Reference CAS' 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. Comments Engagement letter dated October 22, 2015 Audit plan dated October 22, 2015 None noted None noted See page 6 None None See pages 6 and 7 None Management representation letters will be signed by management as at the date of financial statement approval. The Corporation of the City of Pickering-Report to the Executive Committee on the 2015 audits Required communication 11. Other matters that are significant to the oversight of the financial reporting process 12. Modifications to our op(nion 13. Our views of significant accounting or auditing matters for which management consulted with other accountants and about which we have concerns 14. Significant matters discussed with management 15. Illegal or· possibly 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 © Deloitte LLP and affiliated entities. Reference Comments CAS 260.16d. None CAS 260.A18 None CAS 260.A19 We are not aware of any such consultations CAS 260.A.19 None CAS 250.23 None noted CAS 265 No significant deficiencies no!E!d CAS 450.12-13 None The Corporation of the City of Pickering-Report to the Executive Committee on the 2015 audits N 0 Appendix 2-Independence letter © Deloitte LLP and affiliated ·entities. The Corporation of the City of Pickering-Report to the Executive Committee on the 2015 audits I itt May 24,2016 The Members of the Executive Committee The Corporation of the City of Pickering 1 The Esplanade Pickering ON L1 V 6K7 Dear Executive Committee Members: Deloitte LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 6L7 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca We have been engaged to audit the consolidated financial statements of Corporation of the City of Pickering (the "City") for the year ended December 31,2015. You have requested that we communicate in writing with you regarding our compliance with relevant ethical requirements regarding independence as well as all relationships and other matters between the City, our Firm and network firms that, in our professional judgment, may reasonably be thought to bear on our independence. You have also requested us to communicate the related safeguards that have been applied to eliminate identified threats to independence or reduce them to an acceptable level. In determining which relationships to report, we have considered relevant rules and related interpretations prescribed by the appropriate provincial regulator I ordre and applicable legislation, covering such matters as: (a) Holding a financial interest, either directly or indirectly, in a client (b) Holding a position, either directly or indirectly, that gives the right or responsibility to exert significant influence over the financial or accounting policies of a client (c) Personal or business relationships of immediate family, close relatives, partners or retired partners, either directly or indirectly, with a client (d) Economic dependence on a client, and (e) Provision of services in addition to the audit engagement. We confirm to you that the engagement team and others in the firm as appropriate, the firm and, when applicable, network firms have complied with relevant ethical requirements regarding independence. We have prepared the following comments to facilitate our discussion with you regarding independence matters arising since May 21, 2015, the date of our last letter. 21 22 The Corporation Qfthe City of Pickering May 24,2016 Page 2 We are not aware of any relationships between the City and our Firm, including any network firms that, in our professional judgment, may reasonably be thought to bear on independence, that have occurred from May 21, 2015 to May 24, 2016. We have provided non-audit services in relation to assisting the City review its needs for a new Finance system. This included a review of the business and technical requirements as well as developing implementation and operating cost estimates. We hereby confirm that we are independent with respect to the City within the meaning of the Rules of Professional Conduct of the Chartered Professional Accountants of Ontario as of May 24, 2016. This report is intended solely for the use of the executive committee, council, management, and others within the City and should not be used for any other purposes. Yours truly, Chartered Professional Accountants Licensed Public Accountants N w Appendix 3 -Management letter comments We have recently completed our audit of the financial statements of the City for the year ended December 31, 2015. Our audit was designed to provide a cost-effective basis for formulating an opinion on your financial statements. As part of our examination, we reviewed and evaluated relevant aspects of the systems of internal control (including general computer controls) and the accounting systems to the extent we considered necessary to make an evaluation of such systems and procedures in accordance with Canadian GAAS. The main purpose of our internal controls review was to assist in determining the nature, extent and timing of our audit tests and to establish the degree of reliance, which we could pla~e on selected controls; it was not to determine whether internal controls were adequate for management's purposes. While the audit did not include an in-depth evaluation of all systems or all aspects of any individual system and should not, therefore, be relied upon to identify all significant internal control deficiencies, or all errors, irregularities or inefficiencies that might occur, we undertake to report such matters to you when they come to our attention. Our comments and recommendations as well as management's responses are included below. Lack of review of IT policy and procedure (CFWD) Observation During our review of the IT policies and procedures, we noted that the following policy and procedure documents have not been reviewed by management in over two years: • Information Technology Policy • Personal Computer Procedure Without regular review of the IT policies and procedures, there is increased risk that standards are not appropriate or up-to-date for the current state of the IT system or broader IT landscape .and continually evolving security threats. Recommendation We recommend that management complete their review and refresh of IT policies as soon as possible, and plan to review these policies on an annual basis to ensure they remain relevant. Once reviewed, the policies and procedures should be re-circulated to all employees, and posted on the intranet. Management response Information Technology management agrees with the recommendation. We will create a schedule to review technology policies on an annual basis and we will review and update these policies within 3 months. IT policy and procedure review may become part of the annual security awareness training system. © Deloitte LLP and affiliated entities. The Corporation of the City of Pickering-Report to the Executive Committee on the 2015 audits Managing access of rehired users Observation During our testing of the access provisioning process, we noted that there is not a consistent process in place to manage the access of rehired users. During our sample testing, we observed a case where a user's contract had expired and then the individual was rehired throughout 2015. We were unable to obtain evidence showing that her access was revoked or disabled each time her contract expired, and noted that her access was not approved each time she returned to work. If user access is not disabled or revoked when an individual ends their employment for whatever reason, there is a risk that active IDs remain accessible to existing staff or potential intruders to perform transactions. Furthermore, when access is not separately approved when a user begins employment (even if they had previously been employed in the past), tliere is a risk that a user receives access that is excessive for their current job role. Recommendation We understand that it is rare for a user to leave and be rehired several times in the same year. Based on inquiry with management, we also understand that each time this user left, there was a strong possibility she would be rehired. However, we recommend management consistently follow the access provisioning policies in place, such that a user's ID is revoked or suspended when they leave, and their access be approved each time an individual begins employment. Management response Information Technology management agrees with the recommendation. We require information and support from other departments and possibly HR to ensure we have visibility and awareness of inter-department changes related to staffing. Lack of regular security awarenes~ training Observation During our review, we noted that new hires are required to review key policies and procedures outlined in the orientation checklist, which includes the personal computer procedure (ADM 030-001 ), and sign off that they agree to abide by these policies and procedures. However, we noted that regular security awareness training (to continually ensure users are aware of the latest security threats and their responsibility with respect to information security) is not provided to existing employees. Lack of regular security awareness·training may lead to security exposures resulting in unauthorized access to computer systems. Recommendation Management should ensure that security awareness training is provided to all employees on an annual basis. Topics of discussion should include (but not limited to): organization's security policy, common security threats (such as phishing and SPAM), and other security matters relevant to the City. Management response Information Technology management agrees with the recommendation. We are in the process of developing an updated security awareness training system that acknowledges the changing risk landscape and once defined, can be presented to senior management for consideration. © Oeloitte LLP and affiliated entities. The Corporation of the City of Pickering-Report to the Executive Committee on the 2015 audits N U1 itt www.deloitte.ca 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. © Deloitte LLP and affiliated entities. 26 Consolidated financial statements of The Corporatio of the City of Pickeri g Deoembedl, 2015 ~ ATTACHMENT# L TO REPO #fil1la _, (:, FOR DISCUSSION PURPOSES ONLY I The Corporation of the City of Pickering December 31, 2015 Table of contents Independent Auditor's Report .......................................................................................................................... 1-2 Consolidated statement of finandal position.... . . . . ....... ... . . . . .. . ............................ ··~.. . .. . ............. 3 Consolidated statement of operations ................................................................................................................. 4 Consolidated statement of change in net financial assets ................................................................................... 5 Consolidated ~tatement of cash flows ............................................... ~· ...... .. . . .. ....... ... . .... . ................. 6 Notes to the consolidated financial statements .............................................................................................. 7-27 FOR DISCUSSION PURPOSES ONLY 27 28 Independent Auditor's Report To the Members of Council, Inhabitants and Ratepayers of the Corporation of the City of Pickering Deloitte LLP 5140 Yonge reel Suite 1700 Toronto M2N 6L7 Can ad Tel: "116-601-6150 F :416-601-6151 .deloitte.ca We have audited the accompanying consolidated fmancial s teL..().fthe rporation of the City of Pickering, which comprise the consolidated statement of nanci~~on s at December 31, 2015, and the consolidated statements of operations, change in ne mancial assets, d cash flows for the year then ended, and a summary of significant accounting polic'es and other expl atory information. Management's Responsibility for the Consoli ted Financial S tements Management is responsible for the preparatio an_"'_'"'-~= statements in accordance with Canadian p lie sec ing standards, and for such internal control as management determines is necessary enable the ep ation of consolidated financial statements that are free from material misstatement, w ether due to frau or error. Auditor's Responsibility Our responsibility is to expres a We conducted our audit in co an standards require that we omply reasonable assurance ab ut whether t misstatement. 'nion on t se consolidated fmancial statements based on our audit. 'th C adian generally accepted auditing standards. Those et ic requirements and plan and perform the audit to obtain c nsolidated financial statements are free from material An audit involve erforming proc ures to obtain audit evidence about the amounts and disclosures in the consolidate financial statem ts. The procedures selected depend on the auditor's judgment, including the ss ent of ris s of material misstatement of the consolidated fmancial statements, whether d error n making those risk assessments, the auditor considers internal control relevant re ation and fair presentation of the consolidated financial statements in order r that are appropriate in the circumstances, but not for the purpose of expressing an o iveness ofthe entity's internal control. An audit also includes evaluating the ap ropriateness of a counting policies used and the reasonableness of accounting estimates made by anagement, as w 11 as evaluating the overall presentation of the consolidated fmancial statements. We believe th the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit OJ.?. ·on. FOR DISCUSSION PURPOSES ONLY Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the fi ancial position of the Corporation of the City of Pickering as at December 31, 2015 and the results o its operations, change in its net financial assets and its cash flows for the year then ended in ac ordance with Canadian public sector accounting standards. Chartered Professional Accountants Licensed Public Accountants June •, 2016 Page 2 FOR DISCUSSION PURPOSES ONLY 29 56 CLK 03-16 Subject: Ward Boundary Review Page 2 Seaton. Please note that the Regional Municipality of Durham has approved changes to the Region of Durham Council composition. By 2022, the City will have a more precise idea of how these changes have worked, and whether there will be additional changes in the composition of Regional Council prior to the 2022 Municipal Election. Work has begun on a ward boundary review and at this time we have the basic terms of reference that would be followed to complete the ward boundary review. This would include comments from Council in regards to discrepancies in size and population, consultation with the public and Council, protection of communities of interest and neighbourhoods, consideration of physical features such as natural boundaries, consideration of present and future population growth, and the overriding principle of "Effective Representation". A full ward boundary review could possibly lead to a total reconfiguration of the existing wards, so it would be unwise to rush the process. The population figures noted below suggest that the present configuration of Pickering's wards are not balanced. A ward boundary review would be done so as to withstand population changes for at least three terms of Council. Pickering's present ward design dates from a time when the municipality's population was less than40,000. Today, the population is approximately 90,000 and projected growth could take that number to over 150,000 within the next ten years .. Figures from the 2014 Municipal Election Ward Eligible Electors Population 1 23,041 25,776 2 17,306 24,670 3 27,493 39,233 * It is anticipated that Duffin Heights and Seaton will result in a significant population increase in Ward 3. As the community changes, so must the electoral system. Even now there are discrepancies in size and population among the wards and candidates, and voters have noted their concerns. For the 2018 Municipal Election, the Clerk's Office will be investigating and introducing new voting systems and methods to alleviate these concerns. There are many new voting systems which will assist the elector in voting more conveniently, such as internet voting and voting by phone. CR 08-16 June 20, 2016 Subject: Community Association Lease Agreement Page 2 Discussion: For the past several years, the Claremont Golden Age Seniors Club have operated their club activities exclusively from one activity room and storage room located at the Dr. Nelson F. Tomlinson Centre (formerly the Claremont Community Centre) under a verbal agreement with the City of Pickering. During this time, the Claremont Golden Age Seniors Club have maintained the premises and operated their activities in a diligent and conscientious manner that has satisfied the City. For a nominal annualmembership fee of $10, Claremont Golden Age Seniors Club members are offered a regular schedule of activities at their Seniors Centre that provide invaluable social interaction and community connectedness. The Club activity schedule is Tuesday evenings from 7 pm to 10:30 pm for cards, first Thursday of the month from 1 pm to 3:30pm for their monthly club meeting, third Thursday of the month from 11 :30 am to 3 pm for pot luck lunch and cards and every other Saturday night from 7 pm to 10:30 pm for cards. In exchange for the Club's work to maintain the premises and to coordinate, implement and fund these invaluable programs to the seniors' community, the City of Pickering provides the Club with the exclusive use of the activity room (their Seniors Centre) and storage room at no cost. As per the request of Council in 2014, as per resolution #224/14, City staff have prepared a written lease agreement to document this longstanding verbal agreement. As per the terms and conditions of the attached written agreement, the Club is responsible to provide general maintenance services for the premises at its own expense. The Club will also maintain insurance in the amount of 2 million dollars. The City is responsible for all day-to-day operating expenses of the Dr. Nelson F. Tomlinson Community Centre including utilities, snow removal and water treatment systems. The Culture & Recreation Department recommends that the Lease Agreement included as Attachments 1 be initiated for a five year term beginning July 1, 2016 and ending June 30, 2021. Attachments: 1. Draft Lease Agreement with Claremont Golden Age Seniors Club. 2. Location Map of Dr. Nelson F. Tomlinson Community Centre. CORP0227-07/01 revised 59 62 Lease Agreement This Lease is made as of the 1st day of July, 2016. Between: Definitions 1. In this Lease, The Corporation of the City of Pickering (the "City") -and- Claremont Golden Age Seniors Club {the "Club") Article I Interpretation (a) "Commencement Date" means July 1, 2016; (b) "Lease" means this lease as it may be amended from time to time; (c) "Premises" nieans that portion of the Claremont Community Centre considered to be the Claremont Seniors Centre composed of the first floor seniors activity room and storage room therein as shown on Schedule "A" attached hereto, located at 4941 Old Brock Road, in the City of Pickering, Regional Municipality of Durham; (d) "Rent" means the rent payable pursuant to Section 21; and (e) "Term" means the term of this Lease as set out in Section 18. Headings 2. The division of this Lease into articles, sections, subsections and schedules and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Lease. 2 Schedule 3. Schedule "B" (City's Alcohol Management Policy) and Schedule "C" (City's Conditions of Agreement) are incorporated into and form part of this Lease. Severability 4. All of the provisions of this Lease are to be construed as covenants even where not expressed as such. If any such provision is held to be or rendered invalid, unenforceable or illegal, then it shall be considered separate and severable from this Lease and the remaining provisions of this Lease shall remain in force. Number 5. Wherever a word importing the singular number only is used in this Lease, such word shall include the plural. Words importing either gender or firms or corporations shall include the other gender and individuals, firms or corporation where the context so requires. Governing Law 6. This Lease shall be governed by, and interpreted and enforced in accordance with, the laws in force in the Province of Ontario. Entire Agreement 7. This Lease constitutes the entire agreement between the parties concerning the Premises and may only be amended or supplemented by an agreement in writing signed by both parties. Grant Article II Grant and Use 8. In consideration of the performance by the Club of its obligations under this Lease, the City leases the Premises to the Club for its use during the Term. Club Use of Premises 9. The Premises shall be used only for non-profit functions, charity events or non- commercial receptions of the Club at its expense and for no other purpose without the prior written consent of the City. 63 64 3 10. The Club's use of the Premises shall be in accordance with the City's Alcohol Management Policy (Schedule "B") and Conditions of Agreement (Schedule "C"). Nuisance 11. The Club shall not carry on any activities or do or suffer any act or thing that constitutes a nuisance or which is offensive or an annoyance to the City. City Use of Premises 12. Subject to section 11, the City shall have first right of refusal to use the Premises. The Club shall not be entitled to any rental fees or other remuneration associated with the use of the Premises by the City. Assignment and Subletting 13. The Club shall not assign this Lease or sublet all or any portion of the Premises without the prior written consent of the City. Licences 14. The Club may not grant licences to use the Premises. 15. The Club shall submit their annual financial statement to the City by October 1st of each year. 16. The Club shall submit an annual calendar of Club activities to the City by December 1st of the previous year. 17. The Club shall submit a list of the Club Board of Directors to the City by October 1st of each year. Term Article Ill Term 18. The term of this Lease shall be five (5) years from the Commencement Date to June 30, 2021. 19. The City may terminate this Lease at any time for any reason provided it has given the Club six (6) months prior notice. 4 Overholding 20. If the Club remains in possession of the Premises after the expiry of the Term, there shall be no tacit renewal of this Lease or the Term, notwithstanding statutory provisions or legal presumption to the contrary, and the Club shall be deemed to be occupying the Premises from month to month upon the same terms, covenants and conditions as are set forth in this Lease insofar as they are applicable to a monthly tenancy. Rent Article IV Rent 21. The Club shall pay to the City as rent for the entire the Term in lawful money of Canada the suni of One (1) Dollar ($1.00). Gross Lease 22. The City acknowledges that this is a gross lease and agrees to pay all charges, impositions and outlays of every nature and kind relating to the Premises except as expressly set out in this Lease. Article V Maintenance, Repairs and Alterations Maintenance of Premises 23. .The Club shall maintain and operate the Premises so that they shall always be of good appearance and suitable for the proper operation of the Premises. 24. The Club shall provide general maintenance services to the Premises at its expense and shall provide all necessary cleaning and maintenance supplies such as cleaning products, related paper products and cleaning equipment. 25. The City, or its designate, shall be responsible for all day-to-day operating expenses including garbage removal and furniture/appliance life cycle replacement. The Club shall not be responsible for utilities. 26. The City, or its designate, shall provide snow removal services for the parking lot, sidewalks, walkways and all other areas of pedestrian passage on the Premises. 65 66 27. (1) (2) 5 Subject to subsection (2), the City shall be responsible for all inspections and preventative maintenance with respect to the heating equipment, transformer, parking lot, lights and exterior grass cutting and landscaping. The Club shall be responsible for any damages or costs incurred due to the misuse or negligence of the Club, its employees, invitees, servants, agents, or others under its control and the Club shall pay to the City on demand the expense of any repairs including the City's reasonable administration charge necessitated by such negligence or misuse. 28. The Club shall immediately notify the City of any unsafe conditions on the Premises. Security 29. The Club shall be responsible for the security of the Premises. The Club will ensure that no copies of the keys to the Premises are made without the prior written consent of the City. Alterations/Improvements to Premises 30. The Club shall only be permitted to make alterations and improvements tothe Premises that have been approved by the City. Club's Insurance Article VI Insurance and Indemnity 31. The Club, at its sole cost and expense, shall take out and maintain, (a) insurance upon property owned by it which is located on the Premises; and (b) commercial general liability insurance pertaining to the Club's liability to others in respect of injury, death or damage to property occurring upon, in or about the Premises, and abuse insurance. Such insurance to be of an amount which is reasonable and sufficient having regard to the scope of the risk and the current practice of prudent owners of similar premises for the carrying on of similar businesses, but in any event in an amount not less than two million dollars ($2,000,000.00) for claims arising out of one occurrence. Such policy shall also name the City as an additional named insured and may not be cancelled unless prior notice by registered letter has been given to the City by the insurer 30 days in advance of the expiry date. 6 32. Prior to the Commencement Date, the Club shall file with the City a Certificate of Insurance in a form satisfactory to the City Treasurer, verifying that the commercial general liability insurance policy is in effect and setting out the essential terms and conditions of the insurance. 33. The provision of the insurance policy required by this section shall not relieve the Club from liability for claims not covered by the policy or which exceed its limits, if any, for which the Club may be held responsible. Insurance Risks 34. The Club shall not do, omit to do, or permit to be done or omitted to be done upon the Premises anything that may contravene or be prohibited by any of the City's insurance policies in force from time to time covering or relevant to any part of the Premises or which would prevent the City from procuring its policies with companies acceptable to the City. If the conduct of business in the Premises or any acts or omissions of the Club on the Premises causes or results in any increase in premiums for any of the City's insurance policies, the Club shall pay such increase to the City. Indemnification 35. Each of the City and the Club shall indemnify and save harmless the other from and against any and all actions, losses, damages, claims, costs and expenses (including solicitors' fees on a solicitor and client basis) to which the party being indemnified shall or may become liable by reason of any breach, violation or non-performance by the party so indemnifying of any covenant, term or provision of this Lease or by reason of any damage, injury or death occasioned to or suffered by any person or persons including the City or the Club, as the case may be, or any property by reason of any wrongful act, neglect or default on the part of the party so indemnifying or any of those persons for whom it is in law responsible. For greater certainty, the limitation of liability set out above in this section does not extend to claims, losses or damages resulting in whole or in part from the gross negligence or wilful misconduct of the party claiming indemnification, its employees or those for whom it is in law responsible. City's Right to Re-Enter Article VII Remedies on Default 36. If any amount payable to the City under this Lease shall remain unpaid for fifteen (15) days after the Club has received notice thereof, then it shall be lawful for the City at any time thereafter to re-enter the Premises. 67 68 7 City's Right to Remedy Default 37. In addition to all other remedies the City may have under this Lease and in law, if the Club is in default of any of its obligations under this Lease, and such default has continued for a period often (10) days after receipt of notice by the Club (or such longer period as may be reasonably required in the circumstances to cure such default, except in an emergency where the City will not be required to give notice), the City, without prejudice to any other rights which it may have with respect to such default, may remedy such default and the Club shall be responsible for all such costs. Waiver 38. No condoning, excusing or overlooking by the City of any default, breach or non-observance by the Club at any time or times in respect of any covenant, obligation or agreement under this Lease shall operate as a waiver of the City's rights hereunder in respect of any continuing or subsequent default, breach or non-observance, or so as to defeat or affect in any way the rights of the City in respect of any such continuing or subsequent default or breach, and no waiver shall be inferred from or implied by anything done or omitted by the Club save only an express waiver in writing. · Quiet Enjoyment Article VIII Miscellaneous 39. The City shall permit the Club to peaceably possess and enjoy the Premises during the Term without any interference from the City, or any person lawfully claiming by, from or under the City provided the Club is not in default. Right of Entry 40. The Club agrees to permit the City and authorized representatives of the City to enter the Premises during normal business hours for the purpose of inspecting the Premises. The City shall use its best efforts to minimize the disruption to the Club's use of the Premises during any such entry. Signs 41. The Club may only erect signs on the Premises with the City's prior approval. All such signs shall be removed from the Premises at the end of the Term. 8 Compliance with Laws 42. The Club, at its sole cost and expense, shall comply with a Illegal requirements (including statutes, laws, by-laws, regulations, ordinances, orders, rules and regulations of every governmental authority having jurisdiction) that relate to the use of the Premises by the Club or the making of any improvements to the Premises by the Club. Notice 43. Any notice required to be given by the City to the Club under this Lease shall be in writing and shall be delivered to the Premises or such other address of which the Club has notified the City in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Lease. 44. Any notice required to be given by the Club to the City under this Lease shall be in writing and shall be delivered to The Corporation of the City of Pickering, Pickering Civic Complex, One The Esplanade, Pickering, Ontario (Attention: City Clerk) or such other address of which the City has notified the Club in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Lease. Successors and Assigns 45. This Lease shall enure to the benefit of and be binding upon the parties and their respective successors (including any successor by reason of amalgamation or statutory arrangement) and permitted assigns. Schedules 46. Schedules "A", "B" and "C" attached hereto form part of this Agreement. In Witness Whereof the parties have executed this Lease. The Corporation of the City of Pickering David Ryan, Mayor Debbie Shields, City Clerk 69 9 Claremont Golden Age Seniors Club Linda Lusted, President Barb Tran, Secretary 70 72 Schedule 8 THE CORPORATION OF THE CITY OF PICKERING Purpose Engineering & Public Works Department Culture & Recreation Department MUNICIPAL ALCOHOL POLICY December 17, 2014 The purpose of this policy is to endeavor to ensure the appropriate management of the use and consumption of alcoholic beverages in municipally owned facilities; to avoid related problems and to ensure the safety and well being of all participants and to protect the Corporation, its employees and volunteers. 1. Definitions In this Policy, the term, (a) "Licensed function" means a function for which a permit has been issued by, or is otherwise licensed by, the Liquor License Board of Ontario at which alcoholic beverages may be consumed; (b) "Closed private licensed function" means a licensed function determined by the Director of Culture and Recreation to be closed to the general public and of a private nature; (c) "Designated facility" means a City owned building, park, open space and associated parking lot designated by this policy as suitable for an indoor or outdoor licensed function; (d) "User" means a person, group or association to whom the City has granted written permission to use a designated facility for a licensed function and; (e) "Server" means any person serving alcohol 2. Designated Facilities (1) The following are designated facilities for indoor licensed functions: (a) Brougham Community Centre (b) Claremont Community Centre (c) Don Beer Sports Facility Community Centre (d) East Shore ,Community Centre (e) Front Street Centre (f) Green River Community Centre (g) Greenwood Community Centre (h) Mount Zion Community Centre · (i) Pickering Civic Complex U) Pickering Recreation Complex (k) Seniors Activity Centre (I) West Shore Community Centre (m) Whitevale Community Centre (n) Petticoat Creek Community Centre (o) Pickering Museum Village (2) The following are designated facilities for outdoor licensed functions: (a) Claremont Community Park (b) Dunmoore Park (c) Kinsmen Park (d) Pickering Museum Village 3. Alcohol Restrictions Within Designated Facilities All designated facilities defined in this policy shall be deemed a "public place" and as such, in accordance with Section 31 of the Liquor Licence Act, R.S.O. 1990, c.L. 19, no person shall have or consume or sell liquor in any designated facility unless a licence or permit is issued or unless specifically covered by an L.L.B.O. permit. 4. Safe Transportation . (1) Only those users implementing a safe transportation strategy (e.g., a designated driver program, an alternate home transportation option) to prevent intoxicated participants from driving will be permitted to use designated facilities for licensed functions. (2) The Director may require a potential user to demonstrate that such a strategy will be implemented by the user if written permission to use the designated facility for a licensed function is granted. 5. No Alcohol and Low Alcohol Drinks (1) Only users offering a sufficient quantity of no alcohol and low alcohol drinks will be permitted to use designated facilities for licensed functions. (2) The Director may require a potential user to demonstrate that such a strategy will be implemented by the user if written permission to use the designated facility for a licensed function is granted. 6. "Statement of Intoxication" Sign (1) Users of designated facilities for licensed functions shall display prominently in the facility a sign or signs indicating that it is illegal to 2 73 74 serve participants to a state of intoxication. Such signs shall read as follows: City of Pickering -Department of Engineering and Public Works Services-Culture and Recreation Department. · Statement of Intoxication It is contrary to the Liquor Licence Act of Ontario to serve persons to intoxication. For this reason, servers in this facility are required to obey the law and not serve anyone to intoxication. Should you wish a no alcohol or low alcohol "breather" round, request a soft drink, coffee or smaller than usual portion of alcohol. (2) Signs shall be provided by the City to users for display by them in the designated facility during the licensed function. 7. Participant Controls (1) Only users providing sufficient controls to prevent underage, intoxicated or rowdy persons from entering the designated facility, to refuse service to such persons, and to remove such persons from the designated facility will be permitted to use designated facilities for licensed functions. (2) Such controls shall include the following: (a) Having a supervisor in charge of the licensed function present in the designated facility at all times during the function. (b) Having at least two monitors at each entrance to the licensed function at all times during the function; (c) Accepting only an age of majority card, a photo driver's license or a passport as identification for entry; (d) Having a monitor or monitors (other than entrance monitor) in the designated facility at all times during the function at least one monitor for every 200 participants; (e) Using monitors and servers who are 19 years of age or older; (f) Using monitors and servers who do not consume alcohol during the function; and (g) Providing a list of the names of supervisors, monitors and servers to the Director prior to the function. 3 (3) The Director may require a potential user to demonstrate that such controls will be imposed by the user if written permission to use the designated facility for a licensed function is granted. 8. Supervisor, Monitor, and Server Training (1) Only users providing sufficient numbers of supervisors, monitors and servers that have attended an appropriate training course in server intervention will be permitted to use designated facilities for licensed functions. (2) Such training should utilize CAMH course material, and may be provided, at a reasonable cost, through the Department of Culture and Recreation. (3) The Director may require a potential user to demonstrate that sufficient numbers of supervisors, monitors and servers that have attended such a course will be provided by the user if written permission to use the designated facility for a licensed function is granted. (4) Closed private licensed functions are exempt from this section of the policy; however, users of designated facilities for closed private licensed functions shall be encouraged to provide voluntarily properly trained supervisors, monitors and servers since such users are not exempt from responsibility for compliance with the law and for the sobriety and safety of participants. (5) All servers must be "Smart Serve Certified" 9. Insurance (1) Liability Insurance is a mandatory requirement for all individuals/community user groups utilizing city-owned or operated facilities within the City of Pickering. All programs, meetings, recreational events, cultural and social events require liability insurance. Use·rs groups can provide personal proof of insurance, a minimum of $2 million insurance, naming the City of Pickering as an additional insured, or purchase insurance through the City of Pickering, Facility User Group Program. Rates for insurance coverage will vary depending on risk factors, length of the activity, the number of participants, among other factors at the event. Any changes in activities by the user group must be reported to Facility Booking Staff for possible adjustments to the permit. Insurance information must be received and paid in full before the permit start date. Liability Insurance covers from the time and date reflected on the rental permit only. The extra fee for the liability insurance will be added to the rental agreement with the applicable taxes. 4 75 76 (2) When a patron requests a facility/ice rental, facility booking staff members will confirm the event/function required on the permit. Facility staff will review the Liability Insurance User Group Rating Schedule to determine the appropriate fee to be charged to the individual/community user group. (3) Only users having a minimum of $2,000,000 third party general liability insurance coverage, naming the Corporation of the City of Pickering as an additional insured, will be permitted to use designated facilities for licensed functions. 10. Accountability (1) Users of designated facilities for licensed functions shall display prominently in the facility a sign or signs informing participants of the following: (a) The name, address and telephone number of the user; (b) The name, address and telephone number of the representative of the user responsible for the function;. (c) The address and telephone number of the nearest Police Station; (d) The address and telephone number of the Liquor License Board of Ontario; and (e) The address and telephone number of the Department of Culture and Recreation (2) A user that contravenes any City policy or procedure or any applicable law may be refused permission to use designated facilities for licensed functions, at the Director's discretion; Indefinitely, or (a) Until the user can demonstrate to the Director's satisfaction that a further contravention shall not occur. 11. Promoting the Policy The Department of Culture and Recreation shall design and implement, in consultation with CAMH, a strategy to orient all potential users to the requirements of this policy and to promote this policy to the community at large. J:\FACIUTY\FAC1000\MISC\Municipal Alcohol Policy.DOC 5 Report CR 09-16 June 20, 2016 Subject: Architectural & Engineering Consulting Services for the New Fire Hall to service Seaton Page 3 Discussion: The City intends to add a new Fire Hall to service Seaton on a City owned site at the corner of Zents Drive and Brock Road. It is anticipated that the new facility will consist of a single-storey fire hall, with a building footprint of approximately 9,000 square feet. Facility features include: • Slab on grade construction (no basement); • Apparatus bay to accommodate two interior tandem truck bays (up to 4 trucks) with drive-through capability; • Accommodations for up to 8 full-time staff (2 crews of 4 firefighters each); . • Necessary spaces for offices, kitchen, fitness, locker rooms etc. to support an operational independent fire hall; • Staff and visitor parking, and driveway configuration to provide access and sufficient space for the parking of vehicles at the front and rear of the building; • Emergency road access to Brock Road directly from the rear parking area; • Emergency generator; • Fenced accessory building for waste bins and exterior storage; • All required utilities, services, hard and soft landscaping, necessary for a functional and compliant site plan; and • The facility will comply with Post Disaster Design requirements. Construction is planned to be completed around 2019, subject to the pace of construction of the Seaton developments. Design will start in summer 2016 and be completed by the end of 2016 to enable tendering, award and the start of construction in spring 2017, at the earliest. Request for Proposal No. RFP 7-2016 was prepared as a Pre-qualification of Architectural & Engineering Design Services -New Fire Hall to service Seaton and advertised on the City's website and closed on Thursday, March 3, 2016. Four design consultants were pre-qualified and subsequently invited to submit a proposal to Request for Proposal No. RFP-6-2016 Architectural & Engineering Consulting Services-New Fire Hall to service Seaton which closed on Thursday, May 19, 2016. Two of the pre- qualified consultants submitted a proposal. Thomas Brown Architects is the highest ranking proponent. The Health & Safety Policy, the current WSIB Workplace Injury Summary Report and Clearance Certificate, confirmation of Ministry of Labour, Health and Safety Awareness Training certificates for every worker and supervisor who will be working on this project, as submitted by Thomas Brown Architects, have been reviewed by the Coordinator, Human Resources and are deemed acceptable. The 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 Thomas Brown Architects, the references provided and the proposal is deemed acceptable. 81 84 (e) The City's certificate of insurance or approved alternative form shall be completed by the Proponent's agent, broker or insurer · · In accordance with Purchasing Policy Item 10.04, where written proposals are obtained by the Manager in accordance with procedures set out in Section 06 and funds are available in the approved budget; (c) An award over $50,000 is subject to the additional approval of Council. Please include the following items in your Report to Council: 1. if Items (a) through (d) noted above are acceptable to the Co-ordinator, Health & Safety or designate; 2. · if Item (e) is acceptable to the Manager, Budgets & Internal Audit; 3. any past work experience with the highest ranking proponent Thomas Brown Architects including work location; · 4. the appropriate account number(s) to which this work is to be charged; 5. the budget amount(s) assigned thereto; 6. Treasurer's confirmation of funding; 7. related departmental approvals; and 8. related comments specific to the project. Upon receiving Council's approval, an approved "on-line" requisition will be required to proceed. Do not disclose any information to enquiries during this time. The Proponent 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 & seres cl\ VAF/sb attachments Request for Proposal No. RFP-6-2016 Architectural & Engineering Consulting ·Services -New Fire Hall Page 2 of 2 e To: Marisa Carpino May 31, 2016 Director, Culture & Recreation From: Vera A. Felgemacher Manager, Supply & Services Copy: Brian Duffield, Manager, Facilities Operations John Hagg, Fire Chief Fred Hyland, Deputy Fire Chief Vince Plouffe, Supervisor, Facilities Operations Supervisor, Supply & Services Subject: Proposal No. RFP-6-2016 Architectural & Engineering Consulting Services -New Fire Hall Closing Date: Thursday, May 19, 2016 -File: F-5300-001 Terms of reference for RFP-6-2016-Architectural & Engineering Consulting Services-New Fire Hall were emailed to the four pre-qualified vendors from RFP-7-2016-Pre-Qualification of Architectural and Engineering Design Services-New Fire Hall. Two companies have submitted a proposal. Stage 1 -Evaluation of Submission Requirements-has been completed, and tvvo proposals are available for consideration. Hard copies of the proposals have been forwarded via the Manager, Facilities Operations to the Evaluation Committee, along with the criteria to be used and the evaluation form. Each member of the evaluation committee is to carefully review the submissions and score each response against the criteria and sign the form. Attachments previously forwarded: 1. Stage I -Evaluation of Submission Requirements 2. Evaluation Form 3. Stage II-Evaluation Criteria 4. Copy of the Terms of Reference 5. Copy of the proposals received Forward the completed evaluation form to Sue Burgess, Buyer. In accordance with Purchasing Procedures 14.02 Item 17, Committee members' figures for each Respondent will be totaled to establish an average score. A summary of average scores will be prepared for discussion at a meeting set up for the Evaluation Committee. Please direct enquiries to Supply & Services. Respondents will be advised of the outcome when the ccmtract has been awarded. I '\ \ If ybu require further information, please contact me, or a member of Supply & Services. \ c_J\ \ o,_/7 ~ VAF/s'ri / ~ Attachments' COl 85 86 Architectura!,f,_Engineerlng Consulting Servic~i',: · New Fire Hall RFP-6-2016 Stage 1-Evaluation of Mandatory Requirements Stage I will consist of a review to determine which proposals satisfy all of the mandatory submission requirements. Proposals failing to satisfy the mandatory submission requirements as of the submission date will be provided an opportunity to rectify any . deficiencies. Proposals failing to satisfy the mandatory requirements as of the rectification date will be excluded from further consideration. Those submissions that ·satisfy the mandatory requirements will proceed to Stage II. Proposals are to include the following mandatory requirements: A. Submission Form (Appendix B); B. Rate Bid Form (Appendix C) C. Five (5) hard copies and one (1) electronic copy Company Item. Item B Item C A Thomas Brown Architects v X-Incorrect Pricing .j Inc. Total KNYMH Inc. v X-Incorrect Pricing v Total 88 b. Identification of "value-added" services brought by the Proponent's team; and· c. A summary of the risks, concerns or issues associated with the Work and how they will be mitigated. ' Work Plan and Deliverables = 30 Points The Proponent is tb articulate, clearly and concisely, the following: a. An indication of how soon the Proponent can begin 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 (design development, working drawings, tender documents, tendering, construction administration and post construction) in the Proponent's detailed work plan; d. Proposed staffing roles and the amount of time, shown in hours, that they will be dedicated to this project; e. Detail how the Proponent will manage their fee and deliverables to ensure that there are no, or minimal, claims for extra fees; f. Identification of the experience/past projects of the cost Consultant and their success rate; · g. State the assum~tions regarding the roles and involvement of City staff; h. Summary of quality assurance manual arid procf3dures; and i. Explicitly identify any Deliverables and/or Services which are a part of the RFP but are being excluded by the Company during the term of the contract. Quality of Proposal-Total Points= 5 Presentation of proposal, examples, details, content organization. and how well instructions are followed. Pricing-Total Points= 50 Provide a lump sum price (excluding HST) for Architectural & Engineering Design services for the new Fire Hall and as further described in Appendix D -Request for Proposals Particulars, Section A-Deliverables. Pricing will be scored based on a relative pricing formula using the Total Project Cost set out in the Pricing Form, Pricing Table #1 and the average of all hourly rates provided in Pricing Table #2 and Pricing Table #3. Interview Evaluation Criteria-Total Points= 20 If required, and at the completion of Stage IV evaluation, up to three (3) of the highest- ranked Proponents may be selected for an interview. The City and the selected Proponents will schedule these interviews, and Proponents will be given sufficient time to prepare. Interview questions shall be provided only to those Proponents who have· been chosen. RFP-6-2016 Page 2 of 3 Architectural & Engineering Consulting Services-New Fire Hall Interviews shall be scored by representatives of the Evaluation Committee, and shall follow this general format: a. Introductions b. Questions from Evaluation Committee c. Answers from Proponents RFP-6'-2016 Page 3 of 3 Architectural & Engineering Consulting Services-New Fire Hall 89 (.0 0 Request for Proposal -Architectural & Engineering Consulting Services -New Fire Hall RFP-6-2016 Evaluation Form-StaQe II Pricing . Pricing Table #3-I Pricing Table #2-Sub-Interview- Understanding Quality of Table Professional Consultant Responses Respondent Work Plan & #1-to Evaluator Comments of Project Deliverables Proposal. Project Fees-Fees-Interview -Hourly Rates Hourly ·Cost Questions ' (Avg.) Rates (Avg.) WeightiPoints: 15 30 5 40 5 5 20 Threshold. 7 15 3 N/A N/A N/A N/A KNYMHinc. Thomas Brown Architects - Committee. Member:----~---------------- ·Print Name Signature: Date:· ENG 11-16 June 20, 2016 Subject: Municipal Bridge Maximum Gross Vehicle Weight Restrictions By-law to establish a load limit for certain bridge under the jurisdiction of the City of Pickering Page 2 (Bridge# 5001), which was under construction at that time. As a result of the inspections, one bridge structure required a new load limit by-law (By:-law 7367/14). In 2016, the City of Pickering retained Keystone Bridge Management Corporation once again to inspect and validate the gross vehicle weight limit for the bridge structures included in the parent by-law. Subject to the above, staff hereby present a proposed by-law which identifies the new established maximum weight load limit on one bridge (Bridge# 1 0002) under the jurisdiction of the City and which repeals the previously established associated by-law. Financial Implications: The cost for Keystone Bridge Management Corporation to inspect and re-affirm proposed load limits at the five bridge locations and to certify the by-law was $11,272 plus HST. This additional cost is being charged to 2320.2392.0000 Roads current account. In order to remove the bridge load limits, future expenditures will be required to rectify structural deficiencies and to bring the bridges up to current code requirements. Discussion: In July of 2014, staff presented report ENG 16-14 to the Executive Committee. The report, as adopted by the Committee and approved by Council: • identified the maximum vehicle load limits established on five bridges as a result of the inspections on all bridges currently under the jurisdiction of the City of Pickering presented for Council endorsement, the draft by-law necessary for bridge load designations established the necessary schedules for signature by two Professional Engineers certifying the safe load limits and the duration for which the limits apply As a result of the recent inspection of the Pickering/Uxbridge Town line bridge (Bridge# 1 0002), there is a need to reduce the maximum vehicular weight limit restriction of the structure from 11 tonnes to 10 tonnes and amend the Municipal Bridge Load By-law 7367/14. The maximum vehicular weight limit restriction for the remaining four bridges . remains the same as per the current by-law (By-law 7367/14). A copy of bridge site location maps, the draft amending by-law and revised Schedule "A", which identifies all structures to which the by-law applies, are attached. CORP0227 -07/01 revised 93 Column 1 Bridge No. 6003 7004 8001 9006 10002 96 I ~Jt1· if-j{,, ;C;TTACHMENT# __ L-TO REPORT#-~ .... -..... ~ I I LY ~ of ...;::3"'"-- Schedule A Bridge Load Limits Column 2 Bridge Location North Road 0.4km south of Seventh Concession Road Sideline 34 0.2km South of Eighth Concession Road Eighth Concession Road 0.1 Okm west of Sideline 34 Sideline 4 1.4km north of Regional Road #5 Pickering/Uxbridge Townline 0.1 Okm east of Sideline 30 Column 3 Maximum Gross Vehicle Weight 15 tonnes 10 tonnes 15 tonnes 10 tonnes 10 tonnes ENG 12-16 Subject Debenture Financing for the West Shore Neighbourhood - Flood Remediation, Breezy Drive and Vistula Drive Roads Reconstruction June 20, 2016 Page 2 e) the Treasurer be authorized to make any changes, adjustments, and revisions to amounts, terms, conditions, or take any actions necessary in order to effect the foregoing; 4. That the draft by-law attached to this report be enacted; and 5. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: This report serves to seek Council approval for the expenditure and debenture financing with The Regional Municipality of Durham for work to be undertaken by the Region on behalf of the City of Pickering. The Region will be calling and awarding the contract on behalf of the City. In order to mitigate basement flooding in the West Shore Neighbourhood, due to surcharging of the sanitary sewer system during high intensity storm events, the Region is replacing the existing sanitary sewers to provide additional capacity. The City has recognized an opportunity to cost share with the Region during their road restoration to bring sections of Breezy Drive, Vistula Drive and Essa Crescent up to a current standard and to renew the infrastructure. The West Shore Neighbourhood Flood Remediation, the West Shore Neighbourhood- Breezy Drive Road Reconstruction, and the West Shore Neighbourhood -Vistula Drive Road Reconstruction projects are to be combined as the "West Shore Neighbourhood - Flood Remediation, Breezy Drive and Vistula Drive Roads Reconstruction" project for the purpose of debenture financing. CORP0227-07/01 revised 103 104 ENG 12-16 Subject Debenture Financing for the West Shore Neighbourhood- Flood Remediation, Breezy Drive and Vistula Drive Roads Reconstruction Financial Implications: Approved Source of Funds June 20, 2016 Page 3 2011, 2015 & 2016 Capital Budgets-West Shore Neighbourhood Flood Remediation, West Shore Neighbourhood -Breezy Drive and Vistula Drive Roads Reconstruction project Project Code Description Source of Funds Budget Required 5320.1514.6250 Breezy Drive Debt-10 Years $420,500.00 $420,000.00 (2015) 5320.1617.6250 Breezy Drive -Debt-10 Years 85,000.00 85,000.00 (2016) additional funds (Revised as per Recommendation 3a) 5320.1516.6250 Vistula Drive Debt -10 Years 250,000.00 250,000.00 (2015) 541 0. 11 0 1 . 61 81 West Shore. Debt-10 Years 200,000.00 60,000.00 (2011) Neighbourhood - Flood Remediation Property Taxes 0.00 500.00 Total $955,500.00 . $815,500.00 In the 2015 Roads Capital Budget, three road reconstruction projects were approved in the West Shore Neighbourhood. These three projects are: • West Shore Neighbourhood-Breezy Drive • West Shore Neighbourhood-Vistula Drive • West Shore Neighbourhood-Essa Crescent Both the West Shore Neighbourhood -Breezy Drive Road Reconstruction and Vistula Drive Road Reconstruction projects are to be financed through the issuance of debentures for a 1 0-year term. Additional funds were requested in the 2016 Roads Capital Budget for the West Shore Neighbourhood-Breezy Drive Road Reconstruction, and were to be financed by a 1 0-year internal loan. Recommendation 3 a) changes the financing source from internal loan to 1 0-year external debt to match the project financing. In the 2011 Stormwater Management Capital Budget, the West Shore Neighbourhood Flood Remediation project was approved. A portion of the funds will be required for a new storm sewer on Breezy Drive. This work is to be financed through the issuance of CORP0227-07/01 revised ENG 12-16 Subject: Debenture Financing for the West Shore Neighbourhood- Flood Remediation, Breezy Drive and Vistula Drive Roads Reconstruction June 20, 2016 Page 4 debentures for a 1 0-year term. The balance of the approved project ($140,000) will be required in a future year (after this project is complete) to create an overland flow route from Breezy Drive to Frenchman's Bay, across Bruce Hanscom be Park. This project will be rebudgeted in 2017 with a source of funding to be determined at that time. For the purpose of debenture financing, the West Shore Neighbourhood Flood Remediation, the West Shore Neighbourhood-Breezy Drive Road Reconstruction and the West Shore Neighbourhood-Vistula Drive Road Reconstruction projects will be combined into one project and named as the "West Shore Neighbourhood -Flood Remediation, Breezy Drive and Vistula Drive Roads Reconstruction" project. The West Shore Neighbourhood -Essa Crescent Road Reconstruction project is to be funded from the Roads and Bridges Reserve Fund; funds have been approved by Council in the 2015 Capital Budget, and as such does not require additional specific Council approval. Discussion: In accordance with Purchasing Policy, Exceptions, Appendix 1, Item #8, work or services to or from other government agencies, utilities, provincial or federal agencies, crown corporations, municipalities, public agencies or boards may be procured by obtaining one price, subject to the funds being available in the current or capital budgets. The Regional Municipality of Durham meets the above exception. The West Shore Neighbourhood-Flood Remediation, Breezy Drive and Vistula Drive Roads Reconstruction project will be completed by the Region in 2016 and 2017 and is approved in the Capital budget to be financed by external debt. Projects identified in the capital budget as being financed through the issuance of debentures are subject to additional, specific approval of the expenditure and the financing by Council. This report serves to seek Council specific approval of the expenditure and the debenture financing for the West Shore Neighbourhood -Flood Remediation, Breezy Drive and Vistula Drive Roads Reconstruction project. Upon Council's approval of this report, the normal practice of issuing a purchase order for the actual tendered amount will be followed. CORP0227-07/01 revised 105 frJn 12-IV ATTACHMENT# TO REPORT# __ The Corporatioiiof ffie J,t,f'ot ~kering By-law No. Being a by-law to authorize the West Shore Neighbourhood -Flood Remediation, Breezy Drive and Vistula Drive Roads Reconstruction project in the City of Pickering and the issuance of debentures in the amount of $815,000.00 Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower-tier municipality may pass by-laws respecting matters within the spheres of jurisdiction described in that Section; and, Whereas Subsection 401 (1) of the Municipal Act, 2001, as amended, provides that a municipality may incur a debt for municipal purposes, whether by borrowing money or in any other way; and, Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a lower-tier municipality in a regional municipality does not have the power to issue debentures; and, Whereas The Regional Municipality of Durham (the "Region") has the sole authority to issue debentures for the purposes of its lower-tier municipalities including The Corporation of the City of Pickering (the "City"); and, Whereas the Council of the City wishes to proceed with debenture financing for the West Shore Neighbourhood-Flood Remediation, Breezy Drive and Vistula Drive Roads Reconstruction project; and Whereas before the Council of the City authorizes the West Shore Neighbourhood- Flood Remediation, Breezy Drive and Vistula Drive Roads Reconstruction project on the date hereof on the basis of the Region issuing debenture in the amount $815,000.00 for such project, the Council of the City had the Treasurer update the City's Annual Repayment Limit, the Treasurer calculated the estimated annual amount payable in respect of such project and determined that such annual amount would not cause the City to exceed the updated Limit and therefore, Ontario Municipal Board approval is not required as per Section 401 of the Municipal Act, 2001, as amended, and the regulations made thereunder; And whereas after determining that Ontario Municipal Board approval is not required, the Council of the City approved report ENG 12-16 on the date hereof and authorize the Region to undertake the calling and awarding of the contract for the West Shore 107 11 2 ENG 13-16 Subject: Third Concession Road Reconstruction and Centennial Park Parking Lot Refurbishment Tender No. T-10-2016 June 20, 2016 Page 3 Discussion: As part of the 2016 Capital Budget, Third Concession Road Reconstruction and Centennial Park Parking Lot Refurbishment were approved as construction projects. Tender No. T-10-2016 was issued on Wednesday, April13, 2016 and closed on Wednesday, April 27, 2016 with five bidders responding. The low bid submitted by C. Valley Paving Ltd. is recommended for approval. The total gross project cost is estimated at $398,213.00 (HST included), with an estimated total net project cost of $358,603.00 (net of HST rebate). References for C. Valley Paving Ltd. have been checked and are deemed acceptable by the Manager, Capital Projects & Infrastructure. The Waste Management Plan has been reviewed and deemed acceptable by the Manager, Capital Projects and Infrastructure. The Health & Safety Policy, a current WSIB Workplace Injury Summary Report, the Certificate of Clearance issued by the Workplace Safety & Insurance Board, and the Ministry of Labour, Health and Safety Awareness Training Certificates as submitted by C. Valley Paving Ltd. have been reviewed by the Coordinator, Human Resources, and deemed acceptable. The Certificate of Insurance has been reviewed by the Manager, Budgets & Internal Audit, and is deemed acceptable. In conjunction with staff's review of the contractor's previous work experience and the bonding available on this project, the tender is deemed acceptable. Upon careful examination of all tenders and relevant documents received, the Engineering & Public Works Department recommends acceptance of the low bid submitted by C. Valley Paving Ltd. for Tender No. T-10-2016 in the amount of $322,427.14 (HST included), and that the total net project cost of $358,603.00 be approved. Attachments: 1. Supply & Services Memorandum dated April27, 2016 2. Record of Tenders Opened and Checked 3. Location Map-ProjectArea No. 1, Third Concession Road 4. Location Map -Project Area No. 2, Centennial Park Parking Lot CORP0227-07/01 revised ENG 14-16 June 20, 2016 Subject: Request for Additional Funding for Consulting Services Proposal No. RFP-4-2015-Palmer Bridge Financial Implications: 1. Quotation Amount Fee Proposal May 9, 2016 Scope Change Palmer Bridge Widening -Alternative 3 HST (13%) Total Gross Quotation Cost 2. Estimated Project Costing Summary Scope Change Palmer Bridge Widening -Alternative 3 Request for Proposal No. RFP-4-2015 Contingency (1 0%) Subtotal HST (13%) Total Revised Gross Project Cost HST Rebate (11.24%) Total Net Project Cost 3. Approved Source of Funds 2015 Roads Capital Budget Description Fee Proposal Account Code Source of Funds 5320.1408.6250 York Region SEC Funding Agreement ·Available Budget $285,000.00 Page 2 $63,435.00 8,247.00 $71,682.00 $63,435.00 155,100.00 21,854.00 $240,389.00 31,251.00 271,640.00 (27,020.00) ~244,620.00 Required $244.620.00 Total Funds $285,000.00 $244.620.00 Net Project Cost under (over) Approved Funds: $40,380.00 Staff are recommending approval of an increase in the net project cost of $71,008.00 from the amount that was approved by the Chief Administrative Officer in a memo dated September 3, 2015. Due to the increase exceeding the threshold of 10%, Council approval is required. CORP0227-07/01 revised 1 21 122 ENG 14-16 June 20, 2016 Subject: Request for Additional Funding for Consulting Services Proposal No. RFP-4-2015-Palmer Bridge Page 3 Discussion: As part of the SEC Trunk Sewer enhancement funding agreement with the Region of York, one of the approved projects is to rehabilitate the Palmer Bridge, which included the design and approvals. As part of the 2014 Roads Capital Budget, $285,000.00 as approved by Council for the completion of design drawings and tender documents in preparation for tenders to be called in the fall of 2016 for construction to follow in the spring of 2017. Proposal No. RFP-4-2015 submitted by AECOM Canada Ltd. In the amount pf $155,100.00 (HST extra) and the total estimated net project cost of $173,612.00 was , approved by the GAO on September 3, 2015. AECOM Canada Ltd. provided the City with a Preliminary Design Report for the Palmer Bridge. Staff recently reviewed the report and met with AECOM Canada Ltd. to discuss the three alternatives that were being proposed in the report. Upon careful review, staff elected to proceed with Alternative 3, which included widening the existing bridge deck to provide for a sidewalk on each side of the bridge and bike lanes. This alternative requires the consultant to perform additional design work over and above what was approved in the original proposal. The change in scope of work also includes an evaluation of the existing streetlights in the vicinity of the bridge for potential upgrades. The Engineering & Public Works Department recommends acceptance of the additional fee proposal for a change in scope of work for the Palmer Bridge submitted by AECOM Canada Ltd in the amount of $71,682.00 (HST included) and recommends a total revised net project cost of $244,620.00 be approved. CORP0227-07/01 revised ENG 15-16 Subject: Professional Monitoring Services for Stormwater Management Facilities Duffin Heights Neighbourhoop June 20, 2016 Page 2 Engineering & Public Works staff requested a fee proposal from the Toronto Region Conservation Authority (TRCA) for this assignment due to their knowledge, experience and expertise in monitoring services. In accordance with Purchasing Policy 10.03 (c) where the professional service assignment is expected to be above $50,000.00 and the initiating Director intends to acquire the services without going through a competitive process, a Report to Council approval is required to obtain approval to engage a firm for a professional services assignment. . Staff are recommending Council approval of the fee proposal submitted by the TRCA for the Professional Monitoring Services for Stormwater Management Facilities Duffin Heights Neighbourhood in the amount $75,346.14 (HST included) . Financial Implications: 1. Quoted Amount TRCA Fee Proposal HST (13%) Total Gross Quoted Amount 2. Estimated Pro"ect Cost Summa TRCA Fee Proposal Associated Cost Contingency Sub Total-Costs HST (13%) Total Gross Project Cost HST Rebate (11.24%) Total Net Project Costs CORP0227-07/01 revised $66,678.00 8,668.14 $75,346.14 $66,678.00 9,336.00 $76,014.00 9,882.00 $85,896.00 (8,544.00) $77.352.00 125 126 ENG 15-16 Subject: . Professional Monitoring Services for Stormwater Management Facilities Duffin Heights Neighbourhood 3. Source of Funds 2613.2392.0000 Source of Funds 4455.0042. Developers Contribution - Lebovic Enterprises Limited Cougs (Tillings) Limited Total: Budget 78,000.00 . $78.000.00 June 20, 2016 Page 3 Required 77,352.00 $77.352.00 In 2016, the Stormwater Management Facility Monitoring Program was budgeted for in the Water Resources & Development Services Consulting and Professional account, subject to funding by Developers. In 2012, the City received approximately $78,000.00 from both Cougs (Tillings) Limited and Lebovic Enterprises Limited for the completion of the Stormwater Management Monitoring Program as part of the subdivision agreement. These funds will be directed to pay for the full cost of the professional monitoring fees. Discussion: The Duffin Heights Neighbourhood is a development in the City of Pickering. The lands are located between Taunton Road and Rossland Road, and are bounded by West Duffins Creek to the west, the Canadian Pacific Railway to the north and boundary between the Town of Ajax and City of Pickering to the east, and a Hydro corridor to the south. The Cougs (Tillings) Limited and Lebovic Enterprises Limited subdivisions are located along the west boUndary of Duffin Heights Neighbourhood area, west of Til lings Road (see location Map). Construction of these subdivisions began in 2012 and 2013 respectively. The subdivisions are now mostly completed as of 2016.The Stormwater Management Facility was constructed to service an area of 27 ha, which includes the Cougs(Tillings) Limited and Lebovic Enterprises Limited subdivisions and the lands owned by the City of Pickering. The facility was designed to provide quality, quantity and erosion control of stormwater runoff from these lands. Three infiltration systems were built within the subdivisions to address the groundwater balance criteria through infiltration. The City of Pickering requires completion of the Stormwater Management Monitoring Program for all stormwater management facilities prior subdivision assumption. The purpose of the Monitoring Program is to confirm to the_ satisfaction of the City of Pickering that the stormwater management facility and three infiltration systems have been constructed and are functioning to the specifications in the engineering's design and the MOE Certificate of Approval. Performance monitoring of the facility and infiltration systems shall commence after 50% of the dwellings/lots have been constructed, graded and sodded within the facilities' catchment area. CORP0227 -07/01 revised ENG 15-16 Subject: Professional Monitoring Services for Stormwater Management Facilities Duffin Heights Neighbourhood June 20, 2016 Page 4 The Stormwater Management Monitoring Program includes measures of water levels, detention time and release rates to confirm stormwater quantity performance. The program also includes collection of water samples at the inlet and outlet of the facility to characterize the removal efficiency for Total Suspended Solids. The monitoring data will be collected over 3 year period and will be reported in annual and final reports. The Toronto Region Conservation Authority is recommended to complete the Monitoring Program for the Stormwater Management Facilities In accordance with Purchasing Policy 10.03 (c) where the professional service assignment is expected to be above $50,000.00 and the initiating Director intends to acquire the services without going through a competitive process a Report to Council shall be submitted to obtain approval to engage a firm for a professional services assignment. The TRCA and its Environmental Monitoring and Data Management Section is comprised of a multi-disciplinary team with more than two decades of experience in the collection and analysis of aquatic and terrestrial natural heritage data using protocols that have become standardized in the province of Ontario. Within this team there are individuals who are specialized in the collection and analysis of data related to surface water quality and quantity, fluvial geomorphology, groundwater quality and quantity as well as terrestrial and aquatic communities and their associated habitats. The TRCA team is ideally suited for this assignment due to their knowledge, experience and expertise in monitoring services. It will be more cost-effective to hire TRCA to complete the Monitoring Program. Staff are recommending Council approval of the fee proposal submitted by the TRCA for Professional Monitoring Services for Stormwater Management Facilities Duffin Heights Neighbourhood in the amount $75,346.14 (HST included). It also recommended that the net project cost of $77,352.00 (net of HST rebate) be approved. Attachments: 1. Location Map 2. The Toronto Region Conservation Authority Fee Proposal Letter CORP0227-07/01 revised 127 ATTACHMENT# I TO REPORT# eN ll Is--I y:, _ .... l_of I Engineering & Public WOrks. Department Professional Monitoring Services for Stormwater Management Facilities Duffin Heights Neighbourhood Location Map 129 130 May 10,2016 Ms. Irina Marouchko Water Resources Engineer Engineering and Public Works Department City of Pickering One The Esplanade Pickering, ON L 1V 6K7 Dear Ms. Marouchko: C Toronto and Region onservation for The Living City· CFN:XXXXX Re: Confirmation of Scope of Work and Funding Agreement for Duffin Heights Stormwater Facility Assumption Monitoring I am pleased to present this proposal on behalf of the Toronto and Region Conservation Authority, to assist the City of Pickering in the implementation of the pre-assumption monitoring activities for the Lebovic West Lands Stormwater Management facilities in the Duffin Heights Development. Staff in our Environmental Monitoring and Data Management Section is able to · offer a wealth of technical expertise and experience in the application of the. monitoring approaches required for this project. I feel that our combination of technical expertise and dedication, along with our ability to offer you a great deal of "consistency" throughout this long-term process would be advantageous to the City. Further we have the ability to compile and manage the datasets required for this project in order to objectively analyze and interpret the information found. The drawing attached as Schedule "A", defines the proposed physical limits of the project. BACKGROUND The City of Pickering requires the completion of "pre-assumption" monitoring to be carried out at the stormwater management facilities associated with the Lebovic West lands on the west side of Tillings Road, Pickering. Facilities include a completed stormwater management pond and 3 infiltration trenches that have been installed as Low Impact Development (LID) measures within this phase of the Duffin Heights Development project. Tel. 416.661.6600, 1.888.872.2344 I Fax. 416.661.6898 I info@trca.on.ca I 5 Shoreham Drive, Downsview, ON M3N 154 h1ember o-f Conservation Ontario www.trca.on.ca ATTACHMENT#_LTOREPORT# hJ(7 1)--J{p · s1-of q Monitoring of quality and quantity performance indicators will be measured using a combination of automated sampling instruments and manual inspections/measurement throughout a three (3) year period, starting in July 2016. OBJECTIVE The purpose of the monitoring program is to confirm to the satisfaction of the City of Pickering that the stormwater management facilities (SWM Pond and Infiltration Trenches) have been constructed and are functioning to the specifications in the engineer's design and the Ontario Ministry of the Environment and Climate Change (OMOEC) Certificate of Approval. PROJECT SCOPE This project is limited to the SWM pond located west of Til lings Road on the Lebovic West development lands (See attached Figure) and the infiltration trenches located adjacent to Dusty Drive and Teak Mews In the same development. The outcome of the project will be the provision of a report and accompanying data analysis to assist the City of Pickering in decisions related to the assumption of the SWM facilities associated with this development area, and/or identify deficiencies to be addressed by the facility Owner prior to assumption by the City. Methods and monitoring activities are based on the quality and quantity performance monitoring requirements identified in Schedule E of the Subdivision Agreements for both the Lebovic Tillings and Cougs developments (attached). Included in Scope • Monthly inspection of the SWM pond in dry weather conditions and the provision of monthly photo records and inspection report .. Collection and analysis of Total Suspended Solids (TSS) samples from inlet and outlet of pond through eight (8) significant rainfall events (>25mm over 4 hours) .. Measurement of flows through the SWM Pond using automated flow loggers to assess pond retention (water levels) and draw down (retention rates) .. Installation of a tipping bucket rain gauge to collect rainfall data .. Measurement and calculation of sediment volume in main pond cell .. Measurement of volume and flow in each of 3 Infiltration trenches to document infiltration and overflow volumes .. Annual summary/progress report " Final report with data analysis and recommendations related to the performance/function of SWM facilities (pond and infiltration trenches) " Installation of a metric staff gauge at the storm pond (inlet headwall) to facilitate manual water level measurements during monthly inspections .. Decommissioning of equipment and return to City of Pickering Excluded from Scope " Installation of piezometers along length of Infiltration Trenches .. Liaison with SWM facility Owners regarding maintenance requirements or deficiencies identified Tel. 416.661.6600, 1.888.872.2344 I Fax. 416.661.6898 I info@trca.on.ca I 5 Shoreham Drive, Downsview, ON M3N 154 Member of Conservation o'ntario www.trca.on.ca 1 31 132 • Any additional monitoring identified by the City of Pickering throughout the monitoring period • Baseline topographic survey of the facility (this is to be provided by the Owner) • Removal of any sediment from the facility or assessment of sediment quality • Confirmation of the (development) area connected to the Infiltration Trenches for the year(s) monitored BENEFITS In addition to fulfilling the needs of the City of Pickering through the completion of this work, the key benefits of TRCA undertaking these activities are as follows: Consistency in project delivery and data over course of a multi-year project-True "one-window" approach. Data storage and management (including QAIQC) -existing databases for water quality, fish community and hydrology. Data will be subject to same QAJQC process as data collected through TRCA's Regional Watershed Monitoring Program including a semi-annual inter-lab water quality comparison • Ability to offer efficiencies and maximize "economy of scale" related to the collection of monitoring data at the SWM site in conjunction with other TRCA monitoring activities within the Duffin Heights and Seaton development areas. Shared interest in furthering "state-of-knowledge" on Stormwater Management issues and the performance of designed management facilities. • Shared desire for return on data-some data collected can add to additional datasets examining the performance and benefit of Low Impact Development (LID) stormwater management techniques, e.g. -Infiltration trenches • Reduced administration costs to the City of r:'ickering associated with competitive procurement process and managing external contractors • Shared corporate objectives related to watershed protection and enhancement specifically within the Duffins Creek watershed ASSUMPTIONS • Monitoring equipment for use in the project to be provided by the City of Pickering, (see attached list of equipment available} • Monitoring will continue until the later of: 3 years or 8 significant rainfalls (defined as 25mm of rain fallen within 4 hours) • Some equipment including rain gauge and barologger to be installed at Pickering Works Yard adjacent to the pond RISKS Schedule Risks • Lost or vandalized Equipment may delay schedule Tel. 416.661.6600, 1.888.872.2344 I Fax. 416.661.6898 I info@trca.on.ca I 5 Shoreham Drive, Downsview, ON M3N 1 S4 A4-ember of Conservation Ontario www.trca.on.ca ATTACHMENT# cL TOREPORT# _,.;;;;;Co;;._,of cl Schedule E Quaflty PeliorinanceMonit~dng and Quantity Performance Monitoring of Stormwater Management Facilities J~-l(p 1. General (1) (2) (3) (4) (5) (6} (7) (8) (9) The purpose of the monitoring program is to confirm to the satisfaction of the City of Pickering that the stormwater management SWM Pond and Infiltration Trench have been constructed and are functioning to the specifications in the engineer's design and the MOE Certificate of Approval. · Performance monitoring of the SWM Pond and Infiltration Trench shall commence after 50% of the dwellingsflots have been constructed, graded and sodded within the facility's catchment area. The facilities shall be monitored unnthe later of: (a) 3 years or, (b) the occurrence of 8 significant rainfall events (defined below). A "significant rainfall event" is defined as an event where greater than 25 mm of rain has fallen in 4 hours. · The Owner shall make a lump sum contribution to the City on account of the City 'undertaking the monitoring programs for the SWM Pond and Infiltration Trench. Such lump sum contribution by the Owner shall be $27,618.00 and shall be paJd by the Owner prior to the registration of this plan of subdivision. Once the Owner has provided payment to the City, the City will, within.30 days of its receipt of such payment, process a $100,000.00 reduction to the Owner's Performance Letter of Credit (being the amount of the Letter of Credit previously posted on account of the said monitoring program). The City agrees to provide the Owner with a list of deficiencies, if any, and related data for the SWM Pond and Infiltration Trench following each year of monitoring. The fim:ll acceptance process for the'SWM Pond and Infiltration Trench is detailed in Section 18 of this Agreement. Other than as expressly provided in this Schedule E, any works deemed necessary by the City to any of the SWM Pond and Infiltration Trench as a result of the monitoring program are the responsibility of the City, financially and otherwise, and shall not be used as a means to extend the maintenance period or delay the City's issuance of the Final Acceptance Certificate. · · ·· If the Owner is required to perform any remedial works in accordance with this Schedule E, then the monitoring program described herein shall be extended, if necessary, until such time as the remedial works have been completed to the satisfaction of the City and have functioned to the speclflcations in the engineer's design and the MOE Certificate of Approval through three (3) additional significant rainfall events. Pending the outcome of the final design of the SWM Pond and adjacent western slope, an additional monitoring requirement may be deemed necessary. . . ... · 2.. SWM Pond The intent of the monitoring program for the SWM Pond is to confirm to the satisfaction of the City of Pickering that the pond has been constructed and is functioning to the specifications in the engineer's design and the MOE Certificate of Approval with respect to the total suspended solids (TSS) removal efficiency and hydraulic function with respect to detention time and release rates. 32 135 138 Item Snap Link Pipe strap, Tapcon Tapcon Strap Tapcon ConDrive 500 Tool Cobalt Jobber Drillbit Concrete Drillbit 9" cutter, Galv strap, 3" pipe Milwaukee M18 Hammer Drill Kit Tapcons White nylon cord USB Communication Cable Battery Charger. Graduated Cylinder Scissor Ring 50-54 Scissor Ring 16 to 36 21SCO 6712C 2 ISCO 750 Flow Module 2 Prohanger 2 Suspension Harness 31SCO 2150 FloWiink 5.1 Software 2 AV Sensor Carrier USB Cable 2100 ) 2 DTS-12 Turbidity Sensors Cable · End Cap Fixed Connection ISCO to DTS Connector Sonde Holder 4 Levelogger Edge 1 Barologger Edge Software 4 Wellcaps Optical Reader TB3 Rain Gauge TB 344 Mounting Bracket TB 333 Bird Guard FCD Field Calibration Device ML-1-FL Logger Wincomlog Software lnterogation Cable Deep Cycle Batteries Chestwaders Batteries, Drill bit, cable ties etc. Batteries . 4" perforated pipe 3" perforated pipe and hacksaw Battery ENG 17-16 Subject: Village Green Construction Tender No. T-11-2016 June 20, 2016 Page 3 Staff are seeking Council approval to transfer additional funds from the two reserve funds to cover the estimated over expenditure. These additional funds required are being funded at the approved funding ratio. Additional funds are required as the net project cost, including a contingency, exceeds the approved budget. A 10% contingency has been provided to cover possible additional construction cost in the event of unforeseen conditions. If no issues are encountered, these funds will not be required. Discussion: As part of the 2014 Parks Capital Budget, funds were approved for the construction of a Village Green in the Lebovic West development in Duffin Heights. The Village Green fronts on to Tillings Road and Canadian Street and includes walkways, a children's play area, gazebo, site furniture, walkway lighting and associated landscaping. Tender No. T-11-2016 was issued on Apri125, 2016 and closed on May 18, 2016 with 5 bidders responding. The low bid submitted by Melfer Construction Inc. is recommended for approval. References from Melfer Construction Inc. have been reviewed and deemed acceptable by the Senior Coordinator, Landscape & Parks Development. Melfer Construction Inc. have successfully completed other park construction projects for the City of Pickering, most recently Don Beer Memorial Park (Tender No. T-19-2013) and the reconstruction of the Amberlea Park hardball diamond (Tender No. T-4-2015). The Health & Safety Policy, current WSIB Injury Summary Report and Certificate of Clearance issued by the Workplace Safety & Insurance Board and the Ministry of Labour, Health & Safety Awareness Training for Supervisors and Workers, as submitted by Melfer Construction Inc., have been reviewed by the Coordinator, Human Resources and are deemed acceptable. The Certificate of Insurance has been reviewed by the Manager, Budgets & Internal Audit and is deemed acceptable. In conjunction with staff's review of the contractor's references available on this project, the tender is deemed acceptable. Upon careful examination of all the tenders and relevant documents received, the Engineering & Public Works Department recommends the acceptance of the low bid submitted by Melfer Construction Inc. for Tender No. T-11-2016 in the amount of $213,273.94 (HST included) and that the total net project cost of $222,051.00 (net of HST rebate) be approved. Attachments: 1. Supply & Services Memorandum dated May 19, 2016 2. Record of Tenders Opened and Checked-Tender No. T-11-2016 3. Location Map CORP0227-07/01 revised 1 41 ATTACHMENT# TO REPORT# EN C:[ (:J--I (p -, J-Of_;;3;;..__ Pursuant to Information to Bidders Item 26 and Tendering Specifications Item 20, the following documentation will be requested of Melfer Construction Inc. for your review during the evaluation stage of this tender call. Please advise if we are to proceed with collecting the following documentation: (a) A copy of the currently dated and signed 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) Copies of Ontario Ministry of Labour, Health and Safety Awareness Training certificates for every worker and supervisor who will be assigned to this project; (e) Proof of compliance with amended Confined Spaces Regulation (July 1, -2011). Copies of certified Training and Procedures to be used on this project; (f) A list of employees trained in the confined space entry procedure who will be working on this project; · (g) The City's certificate of insurance or approved alternative form shall be completed by the Bidder's agent, broker or insurer; (h) A completed Reference Form (attached); (i) If the Bidder is not a limited Company, pursuant to the relevant Provincial or Federal legislation, a copy ofthe most recent business or partnership registration form filed with the Ministry of Governance and Consumer Service; and G) Waste Management Plan. A budget of $200,000.00 was provided to Supply & Services for this procurement. In accordance with Purchasing Policy Item 06.04, the authority for the dollar limit as set out below excludes HST. As such, in accordance with Purchasing Policy Item 06.11, where the compliant quotation or tender meeting specifications and offering best value to the City is acceptable or where the highest scoring proposal is recommended and the estimated total purchase price is: (c) Over $75,000 and up to $250,000, the Manager may approve the award, subject to the approval of the Director, Treasurer and the CAO. Please include the following items in your memo: 1. if Items (a) through (f) noted above are acceptable to the Co-ordinator, Health & Safety or designate; 2. if Item (g) is acceptable to the Manager, Budgets & Internal Audit; 3. if Items (h) and G) are acceptable to Engineering & Public Works; 4. the appropriate account number(s) to which this work is to be charged; 5. the budget amount(s) assigned thereto; 6. Treasurer's confirmation of funding; Tender No. T-11-2016 144 Tender for Village Green Construction Page 2 ATTACHMENT#....,.~~--REPORT# QvL:--; l:{--1 (p .-t 7 2 of---. 7. related departmental approvals; and 8. related comments specific to the project. After receiving CAO approval; an approved "on.,.line" requisition will be required to proceed. Enquiries can be directed to the City's webstte for the unofficial bid results as read out at the public tender opening or to Supply & Services. Bidders 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 & Services. VAF/sb Attachments (5) Jib ! l Tender No. T-11-2016 Tender for Village Green Construction Page 3 145 F!N 11-16 Subject: 2016 Final Tax Due Date for Commercial, Industrial and Multi-Residenbal Realty Tax Classes June 20, 2016 Page 2 Discussion: in i 998, the Province introduced Current Value Assessment or CVA on a Province-wide basis to replace the old patch work system (throughout the Province) where each municipality used a different base year for assessment purposes. The end result of CVA was that some businesses experienced property tax increases well above 100%. To reduce the property tax increases, the Province introduced capping legislation in 1998. The City of Pickering will soon be in a position to issue the final 2016 property tax bills in accordance with the capping provisions of Bill 140, Continued Protection for Property Taxpayers Act, 2000 and implemented through various Regulations. (Bill 140 rep~aced the original capping legislation of Bill 79 introduced and approved in 1 998). This legislation was put in place to limit assessment reform related increases to 5% per year on commercial, industrial and multi-residential properties. Under this legislation, property owners facing increases due to property assessment reform had their increases "capped" (reduced). Conversely, those properties experiencing decreases were limited to that permitted under the legislation. This meant that taxes had to be clawed back from those experiencing decreases to fund the loss of revenue resulting from the capped increases. The funding 'of the capping protection is paid for on a Region wide-basis. The Region of Durham acts iike a banker in this process. For exarl}ple, the total cost of the capping protection for commercial tax dass is paid for by the other commercial properties throughout the Region by having a portion of their property tax decrease withheld (dawed back). As part of the Region-wide process, the City of Pickering uses a Provincial database program called "Online Property Tax Anatysis" (OPTA) to verify non-residential assessment data. Every municipality within Durham Region uses the OPTA system. Assessment Review Board decisions and Minutes of Settlement decisions have been incorporated into the capping calculations up to the "freeze" date of May 25, 2016. Bill 83 -Legislative Changes to Capping Legislation ln 2004, the Province passed Bill 83, Budget Measures Act. 2004, which provided for various optional tax tools that could be used for the non-residential tax class. In a two tier municipal government structure, the upper tier has the option to select all or some of the tax tools. These tax tools consist of the following options: 1. Annual threshold increase of previous year's annuaiized taxes raised from 5% to 10%. 2. Annual threshold increase capped at 5% of previous year's CVA taxes. 3. Billing threshold established whereby a property that is within the $250 of its CVA based taxation is required to pay its full CVA property taxes. 149 150 FIN11-16 Subject: 2016 Final Tax Due Date for Commercial, Industrial and Multi-Residential Realty Tax Classes June 20, 2016 Page 3 4. The minimum CVA tax for new construction properties was 60% in 2006. New construction properties are now fully phased-in at 1 00% CVA tax. The purpose of these tax tools was to accelerate the movement of non-residential taxpayers to full CVA taxes (such that taxes are calculated using Current Value Assessment multiplied by the corresponding tax rate). Bill 144-Legislative Enhancements to Capping Legislation in 2015, the Province provided additional enhancements to the capping program through Bill 144, the Budget Measures Act, 2015. Beginning in 2016, municipalities are able to increase the annual cap from its current level of 5% of previous year's CVA level taxes up to a new maximum of 10%. In addition, municipalities are able to move properties directly to CVA level taxes if they are within $500 of CVA level taxes, up from the current $250 threshold. The annual cap of up to 10% of previous year's annualized taxes would be maintained. In 2016 the Region of Durham has adopted all of the tax tools and enhancements referenced above, which will reduce the potential remaining life of this program and the protection requirements by 40%. Under the Municipal Act, Subsection343(1), the tax bills must be mailed 21 days before the due date. Taxation staff are cognizant of this legislative requirement and design the tax billing process to meet this requirement. The coordinated efforts between OPTA and Durham Region municipalities have accelerated the capping calculation process over the last few years, allowing the capping 'freeze' to be completed earlier in the year. This has provided an opportunity for the City to set an earlier tax due date for non-. residential property tax groups. Due to the implementation of our new tax software system, and an earlier OPTA freeze date, we now have the ability to process our non-residential billing much earlier than in previous years. By billing the final taxes for non-residential properties early in June, we will be able to re-calculate the monthly Pre-authorized Tax Payment (PTP) plan amounts effective for July 1st as opposed to August 1st or later. This will ensure that any property tax increase for non-residential PTP customers is spread out over six payments (July to December). Table One 2016 Billing Due Dates I February 25 April 25 I June 28 I September 28 Instalment Dates Residential X X I X I X 4 Non-residential X X I i X 3 152 ATTACHMENT#---!-.TO REPORT#f/N" 1 k I (a The Corporation of the City of Pickering By-law No. XXXX/16 Being a By-law to establish the 2016 Final Property Taxes and Due Date for the Commercial, Industrial and Multi-Residential Tax Classes Whereas it is necessary for the Council of The Corporation of the City of Pickering, pursuant to the Municipal Act, 2001, S.O. 2001, c.25 as amended, to pass a By-law to levy a separate tax rate on the assessment in each property class; and, Whereas the property classes have been prescribed by the Minister of Finance under the Assessment Act, R.S.O. 1990, ch.A.31 as amended, and its Regulations; and, Whereas it is necessary for the Council of The Corporation of the City of Pickering, pursuant to the Municipal Act, 2001, S.O. 2001, c.25 as amended, to levy on the whole rateable property according to the last revised assessment roll for The Corporation of the City of Pickering; and, Whereas the Regional Municipality of Durham has passed By-law No. 05-2016 to establish tax ratios, and By-law No. 07-2016 to adopt estimates of all sums required by The Regional Municipality of Durham for the purposes of the Durham Region Transit Commission, and By-law No. 08-2016 to set and levy rates of taxation for Regional Solid Waste Management, and By-law No. 06-2016 to set and levy rates of taxation for Regional General Purposes and set tax rates on Area Municipalities; and, Whereas an interim levy was made by the Council of The Corporation of the City of Pickering (pursuant to By-law No. 7465/16) before the adoption of the estimates for the current year; and, Whereas sub section 342 (2) of the Municipal Act, 2001, S. 0. 2001, c.25 as amended, , permits the issuance of separate tax bills for separate classes of real property for year 2016. Now therefore the Council of the Corporation of the City of Pickering hereby enacts as follows: 1. For the year 2016, The Corporation of the City of Pickering (the "City") shall levy upon all Property Classes (Residential, Commercial, Industrial and Multf- residentiaf) as set out in By-law No. 7491/16 of Schedule A, the rates of taxation, for the City of Pickering, the Region of Durham and for Education purposes on the current value assessment. 2. Where applicable, taxes shall be adjusted in accordance with the Continued Protection for Property Taxpayers Act, 2000, as amended and its Regulations. 3. The levy provided for shall be reduced by the amount of the interim levy for 2016 .. By-law No. Page 2 4. The 2016 final tax calculations for the industrial, commercial and multi-residential realty tax classes is based on a freeze date of May 25, 2016. 5. The 2016 taxes owed for the commercial, industrial and multf-residential assessed properties shall be due in one instalment on September 28, 2016, or as adjusted by the Treasurer. 6. Except in the case of taxes payable under Section 33 and 34 of the Assessment Act, R.S.O. 1990, c.A31, as amended, the percentage charge as a penalty for non-payment of taxes and monies payable as taxes shall be added to every tax or assessment, rent or rate of any instalment or part thereof remaining unpaid on the first day of default and on the first day of each calendar month thereafter in which such default continues pursuant to subsections 345 (1 ), (2) and (3) of the Municipal Act 2001, S.O. c.25 as amended. The Treasurer shall collect by distress or otherwise under the provisions of the applicable statutes all such taxes, assessments, rents, rates or instalments or parts thereof as shall not have been paid on or before the several dates named as aforesaid, together with the said percentage charges as they are incurred pursuant to sections 349, 350 and 351 of the Municipal Act 2001, S.O. c.25 as amended. 7. If any section or portion of this By-law is found by a court of competent jurisdiction to be invalid, it is the intent of Council for The Corporation of the City of Pickering that all remaining sections and portions of this By-law continue in force and effect. 8. Taxes shall be payable to the Treasurer, City of Pickering. 9. This By-law is to come into effect on the date of its final passing. By-law passed this 27th day of June, 2016. David Ryan, Mayor Debbie Shields, City Clerk 153 158 FIN 13-16 Subject: Annual Indexing and Development Charges for City-Wide and Seaton Lands June 20, 2016 Page 2 Financial Implications: Increasing the development charges based on an increase in the construction price index will assist in keeping the revenues generated in line with current costs. Discussion: As provided for in Ontario Reg. 82/.98, s.7, and in section 16 of the City's By-law 7324/13, the development charges charged by the City for all types of development may be indexed annually without amending the By-law. Adoption of the recommendations contained in this report will allow that increase to take effect July 1, 2016 thereby assisting in keeping revenues in line with the costs that development charges fund. Statistics Canada indicates that the Non-residential Building Construction Price Index (an indicator of our costs of construction) for the Toronto area has increased by 1.7% over the year ending March 31, 2016. The change is reflected in the tables attached. This year, City staff are including in the DC annual indexing report a Seaton DC section based on the Seaton FlA. Sections 4 -6 of the FIA outline the DC-related financial terms of the agreement. The Seaton DC rate is lower than the City wide DC rate to reflect the fact that the Seaton Landowner Group (SLG) i$ responsible to design, build and pay for the Seaton internal roads network. · Upon Council's approval of the recommendations contained in this report, the development charges brochure will be updated to reflect the approved rates. The updated brochure will be posted on the City's website and made available at various counters throughout the Civic Complex. Attachments: 1. City-Wide Development Charges (excludes Seaton Lands) . 2. Seaton Lands Development Charges and Financial Impacts Agreement (FIA) Charges · 3. Seaton Lands-Financial Impacts Agreement (FIA) Charges THIS AUTOMATIC AID AGREEMENT made in triplicate this_ day of _____ _ 2016. BETWEEN: THE CORPORATION OF THE TOWN OF WHITBY -and- THE CORPORATION OF THE CITY OF PICKERING WHEREAS subsection 1 (4) of the Fire Protection and Prevention Act, 1997, S.O. 1997, c.4, provides that for the purposes of that Act, an automatic aid agreement means any agreement under which: (a) a municipality agrees to ensure the provision of an initial response to fires, rescues and emergencies that may occur in a part of another municipality where a fire department in the municipality is capable of responding more quickly than any fire department situated in the other municipality; or (b) a municipality agrees to ensure the provision of a supplemental response to fires, rescues and emergencies that may occur in a part of another municipality where a fire department situated in the municipality is capable of providing the quickest supplemental response to fires, rescues and emergencies occurring in the part of the other municipality; AND WHEREAS subsection 2(6) of the Fire Protection and Prevention Act, 1997, S.O. 1997, c.4, provides that a municipality may enter into an automatic aid agreement to provide or receive the initial or supplemental response to fires, rescues and emergencies; AND WHEREAS there are areas within the municipal boundaries of each of Pickering and Whitby in which a fire department in the other municipality is capable of responding to the areas more quickly than any fire department situated in the municipality; NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto covenant and agree with each other as follows: 1. DEFINITIONS AND INTERPRETATION 1.1 Definitions Wherever a term or word set out below appears in the text of this AGREEMENT in all capital letters, the term shall have the meaning set out for it in this Section 1.1. Wherever a term below appears in the text of this AGREEMENT in regular case or not in all capital letters, it shall be deemed to have the meaning ordinarily attributed to it in the English language. Page 1 of7 171 172 ATTACHMENT#_!_ TO REPORT# .. !~_I'f2.~0t..:-ie:, (a) "AGREEMENT" means this agreement including its recitals and any schedules which form an integral part of it, as may be amended from time to time. (b) "AUTOMATIC AID AREA" means any part or all of (i) the westbound lanes of Highway 407 between Lake Ridge Road (being the boundary road between Pickering and Whitby) and Brock Road North in Pickering; (ii) the eastbound lanes of Highway 407 between Lake Ridge Road (being the boundary road between Pickering and Whitby) and Coronation Road in Whitby; (iii) the southbound Lake Ridge Road on-ramp to Highway 407 westbound in Pickering; (iv) that part of the southbound Lake Ridge Road on-ramp to Highway 407 eastbound in Pickering; (v) that part of the northbound Lake Ridge Road on-ramp to Highway 407 westbound in Pickering; and (vi) the eastbound Highway 407 off-ramp to southbound Highway 412, ending at Highway ?/Winchester Road West in Whitby. (c) "AUTOMATIC AID RESPONSE" means the delivery of INITIAL RESPONSE SERVICES by a PARTICIPATING FIRE SERVICE. (d) "HOME FIRE CHIEF" means the Fire Chief of the HOME MUNICIPALITY. (e) "HOME FIRE SERVICE" means the fire service within the HOME MUNICIPALITY that, but for the provisions of this AGREEMENT, would be responsible for providing INITIAL RESPONSE SERVICES. For those parts of the AUTOMATIC AID AREA within the municipal boundaries of PICKERING, HOME FIRE SERVICE means Pickering Fire Services. For those parts of the AUTOMATIC AID AREA within the municipal boundaries of WHITBY, HOME FIRE SERVICE means Whitby Fire and Emergency Services. (f) "HOME MUNICIPALITY" means the municipality to which is provided an AUTOMATIC AID RESPONSE. If an INCIDENT occurs within the municipal boundaries of PICKERING, then HOME MUNICIPALITY means PICKERING. If an INCIDENT occurs within the municipal boundaries of WHITBY, then HOME MUNICIPALITY means WHITBY. (g) "INCIDENT" means a fire, rescue, emergency, or dangerous condition that occurs in an AUTOMATIC AID AREA. (h) "INITIAL RESPONSE SERVICES" for the purpose of this AGREEMENT means the provision of an initial response designed to address the adverse effects of an INCIDENT. Page 2 of 7 (i) "PARTICIPATING FIRE SERVICE" means the fire service within the PARTICIPATING MUNICIPALITY with responsibility for providing an AUTOMATIC AID RESPONSE. For those parts of the AUTOMATIC AID AREA within the municipal boundaries of PICKERING, PARTICIPATING FIRE SERVICE means Whitby Fire and Emergency Services. For those parts of the AUTOMATIC AID AREA within the municipal boundaries of WHITBY, PARTICIPATING FIRE SERVICE means Pickering Fire Services. U) "PARTICIPATING MUNICIPALITY" means the municipality that provides an AUTOMATIC AID RESPONSE. If an INCIDENT occurs within the municipal boundaries of PICKERING, then PARTICIPATING MUNICIPALITY means WHITBY. If an INCIDENT occurs within the municipal boundaries of WHITBY, then PARTICIPATING MUNICIPALITY means PICKERING. (k) "PICKERING" means The Corporation of the City of Pickering, including its successors and assigns, and, where the context allows, its employees, servants, and agents. (I) "WHITBY" means The Corporation of the Town of Whitby, including its successors and assigns, and, where the context allows, its employees, servants, and agents. 1.2 Gender, Plural All words in this AGREEMENT shall be deemed to include any number or gender where the meaning or context so requires. 1.3 Proper Law This AGREEMENT shall be interpreted, be governed by, and enforced in accordance with the laws of the Province of Ontario. 1.4 Headings Article, section, clause, and/or paragraph headings are for reference purposes only and shall not in any way modify or limit the statements contained in the following text. 1.5 Legislation 2. TERM Reference to federal or provincial statutes or regulations, or municipal by-laws, are deemed to refer to the relevant legislation as amended, including successor legislation. 2.1 Term Page 3 of 7 173 174 The term of this AGREEMENT shall be indefinite, and the provisions of this AGREEMENT will be reviewed yearly by the Fire Chiefs of the HOME MUNICIPALITY and the PARTICIPATING MUNICIPALITY. 2.2 Termination This AGREEMENT may be terminated by either party on ninety (90) days' notice in writing to the other. 3. AUTOMATIC AID 3.1 Automatic Aid Response Upon the occurrence of an INCIDENT, an AUTOMATIC AID RESPONSE shall be provided by the PARTICIPATING FIRE SERVICE to the extent that the PARTICIPATING FIRE SERVICE has equipment and staff available. 3.2 Response Upon the occurrence of an INCIDENT, the HOME FIRE SERVICE shall also respond to address the adverse effects of the INCIDENT. 3.3 Command When a HOME FIRE SERVICE and a PARTICIPATING FIRE SERVICE respond to an INCIDENT, the Incident Commander of the HOME FIRE SERVICE shall assume responsibility for the overall command and coordination of operations in respect of the INCIDENT. · 3.4 Incident Management System 4. COST The Incident Management System of the' HOME FIRE SERVICE shall be utilized in response to an INCIDENT. 4.1 No-cost Basis There shall be no cost to the HOME MUNICIPALITY for the provision of an AUTOMATIC AID RESPONSE. 5. RELEASE AND INDEMNITY 5.1 No Claims Neither party shall have any claim or demand against the other for detriment, damage, accident or injury, of any nature whatsoever or howsoever caused to any person or property, including any buildings, structures, erections, equipment, material, supplies, motor or other vehicles, fixtures and articles, effects and things in any manner based upon, occasioned by or attributable to the execution of this AGREEMENT or any action taken or things done or maintained by virtue of the AGREEMENT', or the exercise in any manner of rights arising under the AGREEMENT. Page 4 of 7 ATTACHMENT#_!._ 5.2 Limitation of Liability-Non-Response Further to Sections 3.1 and 5.1 of this AGREEMENT, no liability shall attach or accrue to the PARTICIPATING MUNICIPALITY for failing to provide an AUTOMATIC AID RESPONSE in the event that the PARTICIPATING FIRE SERVICE does not have equipment and staff available at the time of the INCIDENT. 5.3 No Indemnification Each party covenants and agrees that it shall provide AUTOMATIC AID RESPONSE at its own risk and liability, and further to Section 5.1 of this AGREEMENT, neither party will indemnify or save harmless the other from any action, claim, judgement, loss, cost, demand, expense, or liability for which the party may sustain or suffer resulting from, arising out of, or attributable to any action, omission, or thing done or maintained by virtue of this AGREEMENT, the exercise in any manner of rights arising under this AGREEMENT, or the provision of AUTOMATIC AID RESPONSE pursuant to this AGREEMENT. 6. MISCELLANEOUS 6.1 Notice Any notice herein required or permitted to be given under this AGREEMENT shall be delivered personally, through pre-paid courier or registered mail, or by electronic means provided that receipt is verified, addressed as follows: The Corporation of the Town of Whitby Whitby Fire and Emergency Services Attention: Whitby Fire Chief 111 McKinney Drive Whitby, Ontario, L 1 N 5R5 and to: The Corporation of the City of Pickering Pickering Fire Services Attention: Pickering Fire Chief 1616 Bayly Street Pickering, Ontario, L 1W 3N2 Any notice given in such manner shall be deemed received upon receipt if delivered personally, upon delivery if by courier, upon verification of receipt if provided electronically, and five (5) days after deposit of such notice in the mail if sent through registered mail. Any party hereto may at any time give notice to the others of a change of address and thereafter such changed address shall be substituted for the previous address set out in this AGREEMENT. Page 5 of 7 175 176 p O'T # 'FIIG.--62.-te:, ATIACHMENT#_l_ TO RtPOr\1 -- 6.2 Force Majeure/Time Notwithstanding anything in this AGREEMENT, neither party shall be in default with respect to the performance of any of the terms of this AGREEMENT if any non-performance is due to any force majeure, strike, lock-out, labour dispute, civil commotion, war or similar event, invasion, the exercise of military power, act of God, government regulations or controls, inability to obtaih any material or service, or any cause beyond the reasonable control of the party (unless su.ch lack of control results from a deficiency in financial resources). Otherwise, time shall be of the essence of this AGREEMENT and all the obligations contained herein. 6.3 Arbitration All matters of differences arising between PICKERING and WHITBY in any matter connected with or arising out of this AGREEMENT shall be referred to a single arbitrator, if the parties agree upon the arbitrator's identity. Should the parties be unable to agree upon the identity of an arbitrator, then the matter shall be referred to a single arbitrator, to be appointed by a Justice of the Superior Court of Justice. The arbitrator shall conduct the arbitration pursuant to the Arbitration Act, 1991, S.O. 1991 c. 17 and every award or determination shall be final and binding on the parties and their successors and assigns, and shall not be subject to appeal. The arbitrator shall be allowed unfettered and unlimited discretion to determine in each and every case the solution which best balances the completing interests of the parties to the arbitration in accordance with this AGREEMENT, and she or he shall not be bound by any legal precedent in such determination. The arbitrator shall not be bound by the provisions of the Arbitrqtion Act, 1991, S.O. 1991 c. 17 in respect of her or his fees. The arbitrator shall be entitled to award all or part of his or her fees against any party in accordance with the principles which govern an award of costs against a non-successful party in a contested matter before the Superior Court of Justice. In the absence of such an award by the arbitrator, the arbitrator's costs shall be borne equally by both parties, without regard to their ·involvement in the arbitration. 6.4 No Assignment Neither party shall make any assignment of this AGREEMENT without obtaining the prior consent in writing of the other to such assignment. 6.5 Successors The rights and liabilities of the parties shall enure to the benefit of and be binding upon the parties and their respective successors and approved assigns. 6.6 Entire Agreement This AGREEMENT contains the entire agreement between the parties relating to AUTOMATIC AID RESPONSE and it is agreed that there is no covenant, promise, agreement, condition precedent or subsequent, warranty or representation or understanding, whether oral or written, other than as set forth in this AGREEMENT, and this AGREEMENT fully replaces and supersedes any letter, letter of intent, or other contractual arrangement between the parties Page 6 of 7 Report PLN 09-16 Subject: Durham Economic Development Partnership 1. Discussion June 20, 2016 Page 2 DEDP is a staff working group created for the purpose of developing and implementing economic development programs and initiatives that support economic growth and investment across the Region of Durham. DEDP is made up of economic development staff from Pickering, Ajax, Whitby, Oshawa, and the Clarington Board of Trade (on behalf of Clarington), as well as the Region of Durham who represent both the Region and the three northern communities of Brock, Scugog and Uxbridge. Meetings are held at a minimum of six times annually, hosted by the various members of DEDP, and chaired by Region of Durham staff. DEDP members have operated for years under an informal arrangement which they now wish to formalize. To this end, a Memorandum of Understanding has been drafted (see Attachment #1) for Council's consideration. The MOU outlines the roles and responsibilities of the various members, including the sharing of resources and costs amongst the partners. It is recommended that the Mayor and City Clerk be authorized to execute the MOU with the Region of Durham and all other members of the Durham Economic Development Partnership. Legal Se.rvices has reviewed the MOU. DEDP program initiatives include a variety of activities and programs that actively seek out opportunities for attracting new investment and showcasing current investment opportunities within the Region of Durham as a whole, as well as specifically within our own municipality. Examples of activities delivered through the annual DEDP program include: • DEDP representation at major trade shows and conferences that give direct access to pre-qualified, potential investors, and the opportunity to showcase Regional and Pickering specific assets and investment opportunities. Recent shows have included SIOR (Society of Industrial and Office Realtors), CNA (Canadian Nuclear Association) and CoreNet Global (global real estate investment group). • City of Pickering representation within the Region of Durham Foreign Trade Mission program, most recently in China, Germany and a variety of locations through the USA. • Access to investment opportunities and trade missions delivered by the Greater Toronto Marketing Alliance (now Toronto Global), through the partnership agreement financed by the Region of Durham. • DEDP's annual investment/real estate FAM tours, that provide a platform for the City of Pickering and the Region's municipalities to actively promote local business and investment opportunities to "international site selectors, real estate agents and developers on-site, right here in our own community. • In 2016, the DEDP will partner with the Pegasus Investment Group to focus on investment opportunities with pre-qualified site selectors and business consultants in Germany in order to engage German businesses looking to expand their business into Canada. 179 ATTACHf,~ENT # I TO REPORi# fJiN Qq-ih This Memorandum of Understanding (MOU) dated January 4, 2016, Between: The Regional Municipality of Durham (the Region) ·Who will also be representing: The Corporation of the Township of Brock (Brock), The Corporation of the Township of Scugog (Scugog) and The Corporation of the Township of Uxbridge (Uxbridge) -and- The Corporation of the City of Pickering (Pickering) -and- The Corporation of the Town of Ajax (Ajax) -and- The Corporation of the Town of Whitby {Whitby) -and- The Corporation of the City of Oshawa (Oshawa) -and- The Corporation of the Clarington Board of Trade on behalf of the Municipality of Clarington (Clarington) Whereas the Region and the municipalities of Pickering, Ajax, Whitby, Oshawa, Clarington, Brock, Scugog, and Uxbridge (collectively referred to as 'the liPage 181 Municipalities') have a mutual interest in the promotion of the Region for business development and investment attraction purposes and share the following Vision: as a collaborative partnership, the Durham Economic Development Partnership (the Committee) will be the recognized leader and expert in creating proactive initiatives and leveraging resources effectively to facilitate economic growth and prosperity And whereas the Region and the Municipalities have established an informal committee of the staff of the local economic development offices within the Region of Durham to coordinate program activities around business development and investment attraction, sharing the following Mission: the Durham Economic Development Partnership will create a positive environment ·that facilitates diverse investment and employment opportunities, by: • Using a focused and targeted approach, developing responsive, proactive, cost effective programs that benefit the existing employment base and encourage future growth • Creating and communicating key messaging that nurtures a positive image and demonstrates success • Fostering synergistic relationships that support and advance innovation and development 2JPage 182 And whereas the Region and the Municipalities through the Committee have been . planning joint programs and sharing resources on an informal basis to achieve the above stated Vfsion and Mission and now wish to create a clearer understanding of how this resource sharing is to continue in the future; The parties agree to support each other as follows: 1 .. The Term of this Agreement will commence on the effective. date of January 1, 2016 and shall continue for a period offour years until December 31, 2020, or until such time as it is terminated in writing. Any party may terminate their participation for the following term by notice in . writing to the Region of Durham as set out in this Agreement provided no less than 60 days before the end of the current term. 2. Additional parties may be added to this Agreement with the approval of the majority of the existing parties to the Agreemflnt. This Agreement is effective with respect to those additional parties on the date u·pon which that additional party signed the Agreement. 3. The Region will manage the Committee, holding and chairing a minimum of four regular meetings, providing meeting agendas and minutes, managing shared finances, and coordinating all shared activity 31Page 183 tracking/reporting. The Municipalities will participate actively in the Committee, including joint program development, delivery, and tracking/reporting as appropriate. 4. The Region and the Municipalities will provide the required funding to support the activities of the Committee. This funding will be divided into a Region share provided by the Region of Durham and the Municipalities share. The Region's share, which includes contribution for the townships of Brock, Scugog, and Uxbridge, will be equal to 50% of the total funding required by the Committee. The Municipalities will jointly contribute the remaining 50%. The Municipalities share shall be provided jointly and divid~d into equal parts among each of the participating local municipalities. Therefore, for example, if there are 5 participating municipalities in addition to the Region, each of those 5 Municipalities will be required to contribute one fifth of the total for all the Municipalities. 5. The Region will, no later than April 1 of each calendar year, initiate discussions through the Committee regarding proposed jointly funded program initiatives for the following budget year. The committee will meet at least once between April 1 and June 30 each year to establish a mutually agreed upon jointly funded program for the following budget year. The Budget will set out the total share payable by the Region and the total 41Page 184 share to be divided equally among the Municipalities. Further, the Budget will specify the total contribution of the Municipalities to each program element. . 6. In the event that all funds are not expended by the Committee within the previous budget year, the Committee, based on a majority vote, may in the course of the budgeting process set out above, elect to retain and redirect those unspent funds for the purposes of the Committee or to return those · funds to the Region and the Municipalities proportionately iri accordance with the amounts the Re9ion and Municipalities contributed during the year that the surplus c;Irose. 7. The Region will provide a ·draft final copy of the agreed·upon program to all Municipalities no later than October 1st of each calendar year, that will be considered during the Region's budget process. The Region will advise all Municipalities of any changes resulting in reductions, if any, to the agreed upon program budget as a result of Regional Council budget deliberations. 8. Upon Regional Council approval of the Region Economic Development and Tourism budget, the Region will invoice each participating municipality for their proportionate share of program costs. This shall be subject to approval by Regional Council for the Economic Development and Tourism 5jPage 185 186 budget as well as the annual budget approvals by the respective local municipal Councils. 9. The ~egion and the Municipalities agree to diligently pursue the jointly funded program elements. In the event that any program element (or elements) is not delivered in the calendar year, the Committee, through a majority vote, will determine whether the unutilized funds will be refunded proportionately to the participating Region and Municipalities or whether the funds will be reinvested in other joint program elements. In no instance shall the local Municipal cost to deliver the joint program exceed the final approved budgeted shares. The Region and the Municipalities agree to operate. in good faith and in consideration of each municipality's policies and procedures as they relate to their respective economic development departments/divisions. 6\Page