Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
June 18, 2018
C<ty „! P1CKE RiNG Executive Committee Agenda Monday, June 18, 2018 Council Chambers 2:00 pm Chair: Councillor Cumming 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. For information related to accessibility requirements please contact: Linda Roberts 905.420.4660 extension 2928 Iroberts@pickering.ca C<ly DICKERING Executive Committee Meeting Agenda Monday, June 18, 2018 Council Chambers - 2:00 pm Chair: Councillor Cumming (I) Disclosure of Interest Pages (II) Delegations 1. Maryann Nassar Toronto and Region Conservation Authority Re: Update on Carruthers Creek Watershed Plan (III) Matters for Consideration Consultant/Staff Delegation Paula Jesty, Deloitte LLP on Report FIN 11-18 1 Director, Finance & Treasurer, Report FIN 11-18 2017 Year End 1-78 Recommendation 1. That the Report to the Executive Committee on the 2017 audit as submitted by Deloitte LLP (Deloitte) be received for information; and 2. That the 2017 draft Audited Consolidated Financial Statements for the City of Pickering be approved. Consultant/Staff Delegation Katrina Pyke, Coordinator, Museum Operations on Report CS 20-18 2. Director, Community Services, Report CS 20-18 Pickering Museum Village Strategic Plan Final Report Recommendation 79-92 For information related to accessibility requirements please contact: Linda Roberts 905.420.4660 extension 2928 IrobertsApickerinq.ca Cty Of DICKERING Executive Committee Meeting Agenda Monday, June 18, 2018 Council Chambers - 2:00 pm Chair: Councillor Cumming That the Pickering Museum Village Strategic Plan (April 2018) be endorsed in principle; 2. That staff be authorized to use the plan as the basis for future corporate decisions, recommendations, and budget submissions; and 3. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Consultant/Staff Delegation Judy Haber, Senior Partner, Performance Sponsorship Group Inc. • On Report CAO 07-18 3. Chief Administrative Officer Report CAO 07-18 93-115 Marketing Partnerships and Naming Rights Recommendation That Council approve the retention of Performance Sponsorship Group to pursue and secure high profile marketing partnership and naming rights opportunities in accordance with the Purchasing Policy, Section 10.03 (c); and 2. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Director, Community Services, Report CS 08-18 116-129 Waterfront Trail Winter Maintenance Recommendation That Council receive report CS 08-18 for information regarding Waterfront Trail Winter Maintenance. 5. Director, Community Services, Report CS 13-18 130-137 Supply and Delivery of One New Latest Model Year Articulating Front Loader -Quotation No. Q-30-2018 DICKERING Executive Committee Meeting Agenda Monday, June 18, 2018 Council Chambers - 2:00 pm Chair: •Councillor Cumming Recommendation That Quotation No. Q-30-2018 submitted by Hub International Equipment Ltd. in the amount of $222,610.00 (HST included) be accepted; 2. That the total gross project cost of $224,305.00 (HST included) and the total net project cost of $201,994.00 (net of HST rebate) be approved; 3. That the Director, Finance & Treasurer be authorized to finance the total net project cost in the amount of $201,994.00 as follows; a) the sum of $190,0.00.00, as provided for in the Roads Equipment Capital Budget be increased to $200,000.00 to be financed by the issue of debentures by the Regional Municipality of Durham over a term not to exceed five years; b) the sum of $1,994.00 to be funded from property taxes; c) the annual repayment charges in the amount of approximately $43,985.00 be included in the annual Current Budget for the City of Pickering (the "City") commencing in 2018, or such subsequent year in which the debentures are issued, and continuing thereafter until the debenture financing is repaid, and any financing cost to be paid out of the Current Budget; 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. 6. Director, Community Services, Report CS 15-18 138-141 Quotation No. Q-39-2018 -Quotation for the Supply and Delivery of Two Multi -Purpose Tractors Recommendation 1. That Quotation No. Q-39-2018 submitted by Joe Johnson Equipment in the total amount of $320,567.44 (HST included) be accepted; DICKERING ly Executive Committee Meeting Agenda Monday, June 18, 2018 Council Chambers - 2:00 pm Chair: Councillor Cumming 2. That the total gross project cost of $324,522.00 (HST included) and the total net project cost of $292,242.00 (net of HST rebate) be approved; 3. That the Director, Finance & Treasurer be authorized to finance the total net project cost as follows: a) the sum of $138,000.00 to be financed by an internal loan for a term of five years and the balance of $82.00 from property taxes; b) the sum of $154,160.00 to be funded by a transfer from Development Charges — Parks & Recreation Services Reserve 'Fund; and That the appropriate officials of the City of Pickering be authorized to take necessary actions as indicated in this report. Director, Community Services, Report CS 18-18 Architectural & Engineering Design Services for the Pickering Recreation Complex Renovations -Request for Proposal No. RFP -7-2018 Recommendation 142-150 1. That Proposal No. RFP -7-2018 submitted by Barry Bryan Associates in the amount of $281,370.00 (HST included) be accepted; 2. That the total gross project cost of $337,870.00 (HST included), including the amount of the proposal and other associated costs, and the total net project cost of $304,262.00 (net of HST rebate) be approved; 3. That the Director, Finance & Treasurer be authorized to finance the net project cost of $303,262.00 by a transfer from the Rate Stabilization Reserve; and 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. 8. Director, Community Services, Report CS 19-18 Architectural, Landscape and Engineering Design Services for the Pickering Heritage & Community Centre -Request for Proposal No. RFP -6-2018 151-208 DICKERING Executive Committee Meeting Agenda Monday, June 18, 2018 Council Chambers - 2:00 pm Chair: Councillor Cumming Recommendation 1. That Proposal No. RFP -6-2018 submitted by Hariri Pontarini Architects in the amount of $743,675.60 (HST included) be accepted; 2. That the total gross project cost of $947,076.00 (HST included), including the amount of the proposal and other associated costs, and the total net project cost of $852,871.00 (net of HST rebate) be approved; That the Director, Finance & Treasurer be authorized to finance the net project cost of $852,871.00 as follows: a) the sum of $393,222.00 to be funded by a transfer from the Rate Stabilization Reserve; b) the sum of $34,647.00 to be funded by a transfer from Development Charges — City's Share Reserve; c) the sum of $113,171.00 to be funded by a transfer from Development Charges — Parks & Recreation Services Reserve Fund; the sum of $311,831.00 to be funded by a transfer from Development Charges — Library Reserve Fund; 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; and, That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Director, Community Services, Report CS 24-18 Community Association Lease Agreements Tennis Clubs Recommendation 209-240 1. That the Mayor and City Clerk be authorized to execute the Lease Agreement with Amberlea Tennis Club set out in Attachment 1 to this report, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor; Cly 6/1 DICKERING Executive Committee Meeting Agenda Monday, June 18, 2018 Council Chambers - 2:00 pm Chair: Councillor Cumming 2, That the Mayor and City Clerk be authorized to execute the Lease Agreement with Dunmoore Tennis Club set out in Attachment 2 to this report, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor; 3. That the Mayor and City Clerk be authorized to execute the Lease Agreement with Rosebank Tennis Club set out in Attachment 3 to this report, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor; and 4. That the appropriate City officials be authorized to take the necessary actions as indicated in this report. 10. Director, Community Services, Report CS 25-18 Ontario Power Generation -Licence Amending Agreement Recommendation 241-257 1. That the Mayor and City Clerk be authorized to execute a Licence Amending Agreement with Ontario Power Generation for a further five year term, commencing July 1, 2018 and ending on June 30, 2023, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor; and 2. That the appropriate officials of the City of Pickering beauthorized to take the necessary actions as indicated in this report. 11.. Director, Engineering Services, Report ENG 11-18 258-276 Community Safety Zones and Bill 65 Update Recommendation 1. That Report ENG 11-18 regarding an update on the status of Bill 65 with respect to the use of Automated Speed Enforcement technologies in school zones and community safety zones be received for information; 2. That the attached draft by-law be enacted to amend Schedule "14", Community Safety Zones, to By-law 6604/05 to provide for the addition of community safety zones on highways or parts of highways under the DICKERING city Executive Committee Meeting Agenda Monday, June 18, 2018 Council Chambers - 2:00 pm Chair: Councillor Cumming jurisdiction of The Corporation of the City of Pickering, specifically to add community safety zones on portions of Major Oaks Road, Oklahoma Drive, Bushmill Street, and for an extension of the existing community safety zone on Glenanna Road for William Dunbar Public School; and That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. 12. Director, Engineering Services, Report ENG 12-18 School Crossing Guard Program -Quotation No. Q-14-2018 Recommendation 277-283 1. That Quotation No. Q-14-2018 submitted by Neptune Security Service Inc. in the total amount of $1,213,620.00 (HST included) with a net project cost of $1,092,903.00 (net of HST rebate) be approved for the one year period from September 2018 to June 2019, with an option in favour of the City to extend the contract on the same terms and conditions for an additional term of up to two additional one year periods; and That the appropriate officials, of the City of Pickering be authorized to take the necessary actions as indicated in this report. 13. Director, Engineering Services, Report ENG 13-18 Transfer of Sideline 26 Road Allowance -Taunton Road to Whitevale Road Recommendation 284-286 1. That the road allowance know as Sideline 26 between Taunton Road and Whitevale Road, being Part of the Road Allowance between Lots 26 and 27, Concession 4, designated as Part 1, Plan 40R-29922 and Part 1, Plan 40R-29923 be declared surplus to the needs of the City of Pickering and be transferred to the Regional Municipality of Durham for nominal consideration; and 2. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. C4> 6F DICKERING Executive Committee Meeting Agenda Monday, June 18, 2018 Council Chambers - 2:00 pm Chair: Councillor Cumming 14. Director, Engineering Services, Report ENG 14-18 Tender No. T-13-2018 -Breezy. Drive, Waterfront Trail and Forestbrook Park Road and Pathways Reconstruction Recommendation 287-296 1. That Tender No. T-13-2018 — Breezy Drive, Waterfront Trail and Forestbrook Park — Road and Pathways Reconstruction, as submitted by Bond Paving & Construction Inc. in the total tendered amount of $641,276.13 (HST included) be accepted; 2. That the total gross project cost of $760,067.00 (HST included), including the tender amount and other associated costs, and the total net project cost of $684,464.00 (net of HST rebate) be approved; 3. That Council authorize the Director, Finance & Treasurer to finance the net project cost of $684,464.00 as follows: a) The sum of $200,000.00 as approved in the 2018 Sidewalks Capital Budget to be funded by a transfer from the Federal Gas Tax Reserve Fund; b) The additional sum of $17,510.00 to be funded by a transfer from the Federal Gas Tax Reserve Fund; c) The sum of $349,879.00 as approved in the 2018 Roads Capital Budget to be funded by a transfer from the Roads & Bridges Reserve Fund; d) The sum of $117,000.00 as approved in the 2018 Parks Capital Budget to be funded by an internal loan for a five-year term, and $75.00 to be funded by property taxes; and 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. 15. Director, Engineering Services, Report ENG 16-18 297-322 Proposed Road Occupancy By-law Recommendation PJCKE RiNG Executive Committee Meeting Agenda Monday, June 18, 2018 Council Chambers - 2:00 pm Chair: Councillor Cumming 1. That Report ENG 16-18 of the Director, Engineering Services regarding the proposed Road Occupancy By-law be received for information; 2. That City Council authorize staff to consult with utility companies such as Bell, Rogers, Enbridge and Veridian, and solicit their input and comments on the draft Road Occupancy By-law, generally in the form attached to this report; That following the receipt of comments, staff submit a draft by-law with final recommendations for Council consideration at the September 11, 2018 Executive Committee meeting; and That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. 16. Director, Engineering Services, Report ENG 18-18 Proposed Stopping Restrictions -Oklahoma Drive Recommendation 323-328 1. That the attached draft by-law be enacted to amend Schedule "1", No Stopping, to By-law 6604/05 to provide for the regulation of stopping and parking on highways or parts of highways under the jurisdiction of The Corporation of the City of Pickering, specifically to address stopping restrictions on Oklahoma Drive adjacent to Fairport Beach Public School, from 30 metres east of Eyer Drive to Hillcrest Road; and That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. 17. Director, Finance & Treasurer, FIN 12-18 329-337 Investment Portfolio Activity for the Year Ended December 31, 2017 Ontario Regulation 438/97 under the Municipal Act, 2001 Recommendation It is recommended that report FIN 12-18 of the Director, Finance & Treasurer regarding Investment Portfolio Activity for the Year Ended December 31, 2017 be received for information. cty a,% DICKERING Executive Committee Meeting Agenda Monday, June 18, 2018 Council Chambers - 2:00 pm Chair: Councillor Cumming 18. Director, Finance & Treasurer, Report FIN 13-18 338-341 Development Charges Reserve Fund — Statement of the Treasurer for the Year Ended December 31, 2017 Recommendation That Report FIN 13-18 of the Director, Finance & Treasurer respecting the Development Charges Reserve Fund be received for information. 19. Director, Finance & Treasurer, Report FIN 14-18 342-350 Annual Indexing — Development Charges and Seaton Financial Impacts Agreement Recommendation 1. That Report FIN 14-18 of the Director, Finance & Treasurer be received; 2. That effective July 1, 2018 as provided for in By-law No. 7595/17, the Development Charges (the "DCs") referred to in Schedule "C" of that By- law be increased by a 6 month period indexing of 1.4 percent, and for those non-residential Seaton employment lands lying north of the Highway 407 corridor, be indexed effective December 31, 2018; 3. That effective July 1, 2018 as provided for in By-law No. 7595/17, the DCs referred to in Schedule "D" of that By-law be increased by an annual indexing of 3.3 percent; 4. That effective July 1, 2018 the payments related to "10 per cent Soft Services" as provided for by the Seaton Financial Impacts Agreement dated November 26, 2015 be increased by an annual indexing of 3.3 per cent; and 5. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. 20. Director, Finance & Treasurer, Report FIN 15-18 351-356 2018 Final Tax Due Date for Commercial, Industrial, and Multi -Residential Realty Tax Classes Recommendation Cts yf DICKERING Executive Committee Meeting Agenda Monday, June 18, 2018 Council Chambers - 2:00 pm Chair: Councillor Cumming • That Report FIN 15-18 of the Director, Finance & Treasurer be received; That the Director, Finance & Treasurer be authorized to issue the final 2018 Tax Bills for Commercial, Industrial and Multi -residential properties with a due date of September 27, 2018; 3. That the Director, Finance & Treasurer be authorized to make any changes or undertake any actions necessary, including altering the due date, in order to ensure that the tax billing process is completed and in order to comply with Provincial Regulations; 4. That the draft By-law attached to this report be enacted; and 5. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. 21. Director, Finance & Treasurer, Report FIN 16-18 357-388 Strategic Asset Management Policy Recommendation 1. That Report FIN 16-18 of the Director, Finance & Treasurer regarding the Strategic Asset Management Policy be received; That the Strategic Asset Management Policy, attached to this report, be approved; 3. That the Chief Administrative Officer and the Director, Finance & Treasurer be authorized to make any interpretations of the Policy, make rulings that will allow the conduct of business to proceed, and to take any actions necessary to this effect; and, 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this Policy. 22. Director, Finance & Treasurer, Report FIN 17-18 Ontario's Main Street Revitalization Initiative — Municipal Funding Agreement Recommendation 389-426 DICKERING edy Executive Committee Meeting Agenda Monday, June 18, 2018 Council Chambers - 2:00 pm Chair: Councillor Cumming 1 That Report FIN 17-18 regarding Ontario's Main Street Revitalization Initiative — Municipal Funding Agreement be received; 2. That the draft By-law attached to this report be enacted; and 3. That the Mayor and Clerk be authorized to execute a Municipal Funding Agreement for the transfer of Main Street Revitalization Initiative funds between the Association of Municipalities of Ontario and The Corporation of the City of Pickering. 23 Chief Administrative Officer Report CAO 06-18 Economic Development Study Partnership Opportunity with Canadian Urban Institutes -A Strategic Road Map Recommendation 427-430 1. That Report CAO 06-18 detailing the City's interest in entering into a partnership agreement for an Economic Development Impact Study for the Highway 407 Corridor with the Canadian Urban Institute (CUI) be received; 2. That the City's cost of participating in the partnership agreement of $45,000 be funded by a transfer of $30,000 from the Seaton Application Fee Reserve and $15,000 be charged to the consulting account (2121.2392.0000) and this amount is being entirely funded from the Invest Canada — Community Initiatives Government Grant; 3. That staff coordinate the community engagement aspects of this study with the ongoing Community Engagement study previously approved by Council (CAO 03-18); 4. That staff be directed to send a copy of this Report to the Canadian Urban Institute, 'Transport Canada, Greater Toronto Airports Authority, Toronto Global, the Region of Durham, Via Rail and Metrolinx; and 5. That staff report back to Council upon completion of this study. qty o� DICKERING Executive Committee Meeting Agenda Monday, June 18, 2018 Council Chambers - 2:00 pm Chair: Councillor Cumming 24. Director, City Development & CBO, Report PLN 15-18 Sole Source Purchase Whitevale (LED) Sreetlight Replacement Project City of Pickering Recommendation 431-437 1. That the quote submitted by Holophane for 22 Radial Wave Luminaires and 22 Arms in the amount of $44,022.00 (HST excluded) be accepted in accordance with Purchasing Policy 09.04(d);. That the quote submitted by Langley Utilities Contracting Ltd. for installing the new Radial Wave Luminaires and Arms in the amount of $8,039.96 (HST excluded) be approved; That the total project cost of $61,655.00 (HST included), including the amount of the luminaire quotation, installation quotation, and contingency, and the total net project cost of $55,522.00 (net of HST rebate) be approved; 4. That the Director, Finance & Treasurer be authorized to finance the net project costs of $55,522.00 as follows: a) the sum of $51,376.00, as provided for in the 2018 Capital Budget 5325 Streetlights & Signalization by a transfer from the Sustainable Initiatives Reserve; b) the additional sum of $4,146.00 to be funded from property taxes and be charged to 2325.5981 account; 5. That City staff be authorized to sign any agreements between the City and Holophane and Langley Utilities Contracting Ltd. in a form satisfactory to the Director, Finance & Treasurer; and 6. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. 25. Director, City Development & CBO, Report PLN 16-18 438-442 Proposed Telecommunication Towers Seaton Community Recommendation DICKERING dy Executive Committee Meeting Agenda Monday, June 18, 2018 Council Chambers - 2:00 pm Chair: Councillor Cumming That City Council endorse in principle the placement of telecommunication towers within City parks in the Seaton Community. 26. Director, City Development & CBO, Report PLN 19-18 443-450 Purchase of Electric Vehicles and Charging Stations Recommendation 1. That Council approve the Workplace Electric Vehicle Charging Incentive Program (WEVCIP) as an alternate funding source of $22,500.00 for the purchase of electric charging stations; 2. That Council authorize the Director, Finance & Treasurer to revise the source of funding from Municipal GHG Challenge Fund in the amount of $22,000.00 to Vehicle Replacement Reserve 7040; and 3. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. (IV) Other Business (V) Adjournment Obi ,E DICKERING Report to Executive Committee Report Number: FIN 11-18 Date: June 18, 2018 From: Stan Karwowski Director, Finance & Treasurer Subject: 2017 Year End Recommendation: 1. That the Report to the Executive Committee on the 2017 audit as submitted by Deloitte LLP (Deloitte) be received for information; and 2. That the 2017 draft Audited Consolidated Financial Statements for the City of Pickering be approved. Executive Summary: Attached to this report is the auditor's Report to. Executive Committee on the 2017 audit and the draft Audited Consolidated Financial Statements for the year ended December 31, 2017. Again this year, the auditor has provided an unmodified audit report on the financial statements. This means that the financial statements present fairly, in all material respects, the financial position of the City and its operations, changes in its net financial assets and its cash flows in accordance with Canadian public sector accounting standards. Staff are pleased to advise that the auditor did not identify any significant deficiencies during the audit to formally report to Council and therefore has not issued a management letter. Financial Implications: The Balance Sheet continues to improve with net financial assets increasing by -approximately $22.5 million which means that the City is more than capable of meeting its financial commitments. This increase is attributable to sale of land in 2017 that will assist in the financing of the construction of the new Operations Centre. The gain from the sale of land along with the total expenditures being well under budget led to an increase in the accumulated surplus of $39.1 million over prior year. 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 may arise due to the timing of approval in the capital budget as compared to the actual receipt of funds/recognition of revenue. 1 2 FIN 11-18 June 18, 2018 Subject: 2017 Year End Page 2 Overall, the City's financial position is healthy and strong and the City is able to meet its financial commitments. Discussion: The audit of the consolidated financial statements for the year ended December 31, 2017 has been completed. The auditor's Report to Executive Committee is included as Attachment 1. This Report, prepared by Deloitte, summarizes its findings from the December 31, 2017 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. Appendix 3 is the draft management representation letter which is provided by the City to the auditors. This letter indicates that the financial statements are management's responsibility and that management has provided and disclosed all necessary information to ensure that the financial statements are not materially misstated. This letter will be signed by the appropriate authorities upon approval of the financial statements. The scope of the audit does not include an in-depth evaluation of all systems or internal controls; however, the auditors may report on matters that come to their attention during the course of their review. No significant matters came to their attention to report and therefore a management letter has not been issued. During the course of any audit, auditors may find misstatements that may or may not be adjusted due to materiality. For 2017, an uncorrected misstatement arose during the audit. During 2017 some of the useful life estimates for tangible capital assets were identified to be adjusted. For example, the vehicles' useful life was adjusted from 5 to 7 years to better reflect the City's actual retention period. Not all asset categories were able to be completed prior to December 31St which resulted in an overstatement of the amortization expense. The draft Audited Consolidated Financial Statements are included as Attachment 2. These statements are the responsibility of management and haVe been prepared by City accounting staff under the direction of the Director, 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 which means the auditors have indicated that in their opinion, the consolidated financial statements are fairly presented, in all material respects. In other words the City has a clean report. 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 share of Veridian's income or loss in the Consolidated Financial Statements. 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 FIN 11-18 June 18, 2018 Subject: 2017 Year End Page 3 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 $49.1 million which is offset by an increase in liabilities of $26.6 million. This resulted in an increase in net financial assets of $22.5 million over the prior year which means the City is able to meet its financial commitments. As noted earlier, this net increase is primarily attributable to sale of City lands in 2017. 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 10 of the Financial Statements provide a summary of the City's tangible capital assets. The December 31, 2017 gross book value of assets is $464.0 million and, after adjusting for amortization, the net book value of the assets is $240.3 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 development charges and contributions earned line item. The budget amount primarily represents development charge (DC) funding of 2017 capital projects. The actual amounts reported reflect 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. 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. The capital budget expenditures do not show on the Statement of Operations as capital expenditures. For those expenditures that meet the definition of a tangible capital asset (TCA), the cost is reported on the Statement of Financial Position (Balance Sheet). Only a portion of the asset's cost is included as an amortization expense each year over 3 FIN 11-18 June 18, 2018 Subject: 2017 Year End Page 4 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 18 of the City's consolidated financial statements reflect the changes made to the 2017 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. Accumulated Surplus The components that make up the Accumulated Surplus are disclosed in Note 11 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 $381.7 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 $240.3 million and the City's equity in Veridian Corporation of approximately $81.5 million. The accumulated surplus is comprised of the following: 2017 2016 Operating fund $ 125,237 $ 125,234 Capital fund . 25,169,415 19,827,450 Reserves and reserve funds 73,136,645 46,814,053 Equity in Veridian Corporation 81,505,144 79,419,406 Tangible capital assets 240,256,987 223,836,631 Note Receivable 3,796,946 4,055,276 Post employment benefits liability (5,430,656) (4,780,500) WSIB benefit liabilities (1,862,876) (1,806,100) Internal loans (3,595,241) (3,482,113) Net long-term liabilities (31,412,982) (21,455,816) $381,688,619 $342,553,521 4 FIN11-18 June 18,2018 Subject: 2017 Year End Page 5 Attachments: 1. Auditor's Report to Executive Committee on the 2017 Audit 2. 2017 Draft Audited Consolidated Financial Statements Prepared By: Kristine Senior, CPA, CA Manager, Accounting Services Approved/Endorsed By: Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer 4t Zot Deloitte: The Corporation of the City of Pickering Report to the Executive Committee on the 2017 Audit June 18, 2018 ATTACHMENT # i TO REPORT ## Deloitte. May 30, 2018 Private and confidential To the Members of Executive Committee The Corporation of the City of Pickering 1 The Esplanade Pickering ON L1V 6K7 Report on audited annual financial statements Dear Executive Committee Members, Deloitte LLP 400 Applewood Crescent Suite 50Q Vaughan ON L4K 0C3 Canada Tel: (416) 601 6150 Fax: (416) 601 6151 www.deloitte.ca We are pleased to submit this report on the results of our audit of the consolidated financial statements of the City of Pickering (the "City") for the 2017 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 service plan dated November 6, 2017. This report is intended solely for the information and use of Council, management, and others within the City and is 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 management 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 to answering any questions which you may have. Yours truly, ago:t.t& Chartered Professional Accountants Licensed Public Accountants The Corporation of the City of Pickering 1 Table of contents • Table of contents Our audits explained 1 Areas of audit risk 4 Significant accounting practices, judgments and estimates 6 Other reportable matters 8 Appendix 1 - Communication requirements Appendix 2 - Independence letter Appendix 3 Draft management representation letter © Deloitte LLP and affiliated entities. The Corporation of the City of Pickering 1 Our audits explained Our audits explained This report summarizes the main findings arising from our audits. Audit scope and terms of engagement We were engaged to perform the audits of the City's, Library's, and Trust Fund's Financial Statements as at, and for the year ended, December 31, 2017 (the "Financial Statements") prepared in accordance with Canadian Public Sector Accounting Standards ("PSAS") for the City and the Library Board and Canadian Accounting Standards for Not For Profit Organizations for the Trust Funds. Our audits were conducted in accordance with Canadian Generally Accepted Auditing Standards ("Canadian GAAS"). The terms and conditions of our engagement are described in the Master Services Agreement dated October 28, 2016. Significant audit risks Through our risk assessment process, we have identified the significant audit risks. These areas of risk 'of material misstatement and our related audit responses are described in the `Areas of audit risk' section of this report. Materiality We are responsible for providing reasonable assurance that your financial statements as a whole are free from material misstatement. Our materiality was determined as follows: • Consolidated financial statements for the City - approximately 3% of expenses, • City of Pickering Public Library Board - approximately 3% of expenses, and • City of Pickering Trust Funds - approximately 3% of fund balances. We agreed to inform you of any uncorrected misstatements detected during the audit which were greater than a clearly trivial amount of 5% of materiality and any misstatements that are, in our judgment, qualitatively material. In accordance with Canadian GAAS, we asked that any misstatements be corrected. 1 CO © Deloitte LLP and affiliated entities. The Corporation of the City of Pickering 1 Our audits explained Status and outstanding moat:tars We expect to be in a position to render our audit opinions on the financial statements of the City, the Library Board, and the Trust Funds following their approval, and the completion of the following procedures: • Receipt of signed management representations letters • Receipt of legal responses, and • Update of our subsequent events procedures. Uncorrected misstatements The only misstatement aggregated by us during the audit results from revised estimates related to the useful lives of tangible capital assets. Some capital assets' useful lives were adjusted, however, some asset classes still made use of old useful life estimates in the determination of current year amortization. This has resulted in an overstatement of amortization expense and understatement of the net book value of tangible capital assets by approximately $1.27 million in the current year. Going concern Going concern Management has completed its assessment of the ability of the City and the Library to continue as a going concern and in making its assessment did not identify any material uncertainties related to events or conditions that may cast significant doubt upon the City's ability to continue as a going concern. We agree with management's assessment. 2 Internal controls During the course of our audits, we examined certain of the accounting procedures and internal controls related to the financial reporting processes at the City and the Library. As a result of this examination, we did not identify any significant deficiencies in internal control. Uncorrected misstatemen' Uncorrected misstate Uncorrected disclosure misstatements In accordance with Canadian GAAS, we request that all disclosure misstatements be corrected. There are no significant disclosure misstatements aggregated by us during the current engagement and pertaining to the latest period presented to report. © Deloitte LLP and affiliated entities. The Corporation of the City of Pickering 1 Our audits explained Fraud risk A summary of the results of our audit procedures designed to address the risk of material misstatement in the financial statements relating to fraud is provided in the 'Areas of audit risk' section of this report. Independence We have developed appropriate safeguards and procedures to eliminate threats to our independence or to reduce them to an acceptable level. We confirm that we have complied with relevant ethical requirements regarding independence. Our annual independence letter is included in Appendix 2. Significant accounting practices, judgments and 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. See pages 6 and 7 for further details. Conclusion In accordance with Canadian GAAS, our audits were designed to enable us to express an opinion on the fairness of the presentation of the financial statements prepared in accordance with Canadian Public Sector Accounting Standards ("PSAS") for the City and the Library Board and Canadian Accounting Standards for Not -For -Profit Organizations for the Trust Funds. • No restrictions have been placed on the scope of our audits. In performing the audits, we were given full and• complete access to the accounting records, supporting documentation and other information requested. We expect to issue an unmodified Independent Auditor's Report on the financial statements of the City, Library Board. and Trust Funds for the year ended December 31, 2017 once the outstanding items, referred to previously in this report, are completed satisfactorily and the financial statements are. approved. 3 © Deloitte LLP and affiliated entities. The Corporation of the City of Pickering 1 Areas of audit risk Areas of audit risk 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 glsk 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 tested the design and implementation of controls in these revenue streams and performed substantive analytic procedures and detailed testing in these areas, and • Substantive testing to determine if restricted contributions (i.e., development charges), and government transfers had been recognized as revenue in the appropriate period. (Revenue vs. deferred revenue). Our audit response To address the risk of management override of controls we: • Engaged in periodic fraud discussions with certain members of senior management and others • Considered the potential for bias in judgments and estimates, including performing retrospective analysis of significant accounting estimates • Evaluated the business rationale for any significant unusual transactions • Evaluated the City's fraud risk assessment and consider entity - level internal controls and internal controls over the closing and reporting process, and • Tested journal entries that exhibit characteristics of possible management override of controls *These areas were identified as areas of significant risk. Audit results We obtained sufficient audit evidence in . this area and are satisfied with the results of audit procedures performed. Audit results Our procedures did not indicate any evidence of management override of controls. 4 © Deloitte LLP and affiliated entities. The Corporation of the City of Pickering j Areas of audit risk Management estimates :v.ridut risk Estimates require management judgments (Le., provision for significant property tax appeals, contingent liabilities, estimated accrued liabilities, etc.) Our audit response • Obtained 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 • Assessed the outcome of retrospective review of estimates from prior years. Audit resuOts We obtained sufficient audit evidence in this area and are satisfied with the results of audit procedures performed. • 5 © Deloitte LLP and affiliated entities. The Corporation of the City of Pickering 1 Significant accounting practices, judgments and estimates 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 In the current year, the City changed their accounting policy with respect to the treatment of actuarial gains and losses relating to their WSIB benefits liability. Whereas in the past, any. actuarial gains and losses were recognized immediately in expense for the year, the City has now adopted a policy to amortize such gains and losses over the expected average remaining service life of the employees. The impact of this change did not result in any material impact to the financial statements. There were no other changes to previously adopted accounting policies or their application at the City, the Library Board or the Trust Funds. 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, 2017, management advised us that a preliminary draft capital management plan (CMP) was completed, resulting in the adjustment of useful lives for many tangible capital assets. Management has utilized the updated useful lives for many of the tangible capital assets as they reflect management's best estimate at this time. Certain asset classes, however, were not adjusted due to a delay in updating the City's current capital assets policy. This resulted in the uncorrected misstatement as noted on page 2. There were no other significant changes in accounting estimates or in judgments relating to the application of the accounting policies. 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. 6 © Deloitte LLP and affiliated entities. The Corporation of the City of Pickering 1 Significant accounting practices, judgments and estimates Significant estimates include: 2017 2015 Post -employment benefits liability $5,609,656 $4,959,500 WSIB benefits liability $1,862,876 $1,806,100 Allowance for doubtful accounts $5,000 $5,000 Provision for property tax assessment appeals $743,671 $1,047,562 — • 7 © Deloitte LLP and affiliated entities. Cs) The Corporation of the City of Pickering 1 Other reportable matters Other 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 as part of the audit service plan. Comment Changes to the audit service plan The audits were conducted in accordance with our Audit service plan, which was communicated to the Executive Committee. We confirm that there have been no significant amendments to the audit scope and approach communicated in our Audit service plan. Significant difficulties encountered in performing the audit 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 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. Disagreements with management During the course of our audits, we did not have any disagreements with management about matters that individually or in the aggregate could be significant to the financial statements. Consultation with other accountants Management has informed us that the City and the Library Board have not consulted with other accountants about auditing or accounting matters. Legal and regulatory compliance 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. Subsequent events At the date of finalizing this report, we are not aware of any significant subsequent events that would require adjustment or disclosure in the financial statements at December 31, 2017. 8 © Deloitte LLP and affiliated entities. The Corporation of the City of Pickering 1 Appendix 1 - Communication requirements Appendix 1 -Communication requirements The table below summarizes our communication requirements under Canadian GAAS. R,ecw red communication Comments Audit service plan 1. Our responsibilities under Canadian GAAS, including forming and expressing an opinion on the financial Master Services Agreement dated statements October 28, 2016 2. An overview of the overall audit strategy, addressing: a. Timing of the audit b. Significant risks, including fraud risks, and c. Planned responsibilities of other independent public accounting firms or others that perform audit procedures in the audit. Audit service plan presented to -the Executive Committee on November 6, 2017 We received the reporting requested from the independent auditor of Veridian Corporation 3. Significant transactions outside of the normal course of business, including related party transactions None noted Enquiries of those charged with governance 4. How those charged with governance exercise oversight over management's process for identifying and Covered when presenting the Audit service responding to the risk of fraud and the internal control that management has established to mitigate plan these risks 5. Any known suspected or alleged fraud affecting the City None noted 6. Whether the City is in compliance with laws and regulations Refer to `Other reportable matters' section of this report Year end communication 7. Fraud or possible fraud identified through the audit process None noted 8. Significant accounting policies, practices, unusual transactions, and our related conclusions See page 6 9. Alternative treatments for accounting policies and practices that have been discussed with management Nothing of significance during the current audit period 10. Matters related to going concern None 11. Management judgments and accounting estimates See pages 6 and 7 © Deloitte LLP and affiliated entities. The Corporation of the City of Pickering 1 Appendix 1 — Communication requirements Required communication Comments 12. Significant difficulties, if any, encountered during the audit None 13. Material written communications between management and us, including management representation Management representation letter is letters attached in Appendix 3 .14. Other matters that are significant to the oversight of the financial reporting process None 15. Modifications to our Independent Auditor's Reports. None 16. Our views of significant accounting or auditing matters for which management consulted with other We are not aware of any such consultations accountants and about which we have concerns 17. Significant matters discussed with management None 18. Illegal or possible illegal acts that come to our attention None noted • 19. Significant deficiencies in internal control, if any, identified by us in the conduct of the audit of the No significant deficiencies noted financial statements 20. Uncorrected misstatements and disclosure items - See page 2 21. Any significant matters arising during the audit in connection with the City's related parties None•noted © Deloitte LLP and affiliated entities. The Corporation of the City of Pickering Appendix 2 — Independence letter Appendix 2 -Independence letter © Deloitte LLP and affiliated entities. Deloitte.. May 30, 2018 Private and confidential The Members of the Executive Committee The Corporation of the City of Pickering 1 The Esplanade Pickering ON L1V 6K7 Dear Executive Committee Members, Deloitte LLP 400 Applewood Crescent Suite 500 Vaughan ON L4K 0C3 Canada Te l : 416-601-6150 Fax: 416-601-6151 www.deloitte.ca We have been engaged to audit the consolidated financial statements of The Corporation of the City of Pickering (the City) for the year ended December 31, 2017. 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/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. 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 31, 2017, the date of our last letter. We are not aware of any relationships between the Deloitte Entities and the City and its affiliates, or persons in financial reporting oversight roles at the City and its affiliates, that, in our professional judgment, may reasonably be thought to bear on independence, that have occurred from May 31, 2017 to May 30, 2018. We have been engaged to provide non -audit services with respect to advising the City in its Enterprise Resource Planning (ERP) selection. This includes the development of financial system specifications and RFP proposal and vendor selection. We have also provided services on behalf of the shareholders of Veridian Corporation with respect to a peer review of the business case for the potential merger with Whitby Hydro Energy Corporation. 20 The Corporation of the City of Pickering May 30, 2018 Page 2 We hereby confirm that we are independent with respect to the City in accordance with the Rules of Professional Conduct of the Chartered Professional Accountants of Ontario as of May 30, 2018. This letter is intended solely for the information and use of council, management, and others within the City and is not intended to be and should not be used for any other purposes. Yours truly, az&z& LLP Chartered Professional Accountants Licensed Public Accountants 21 The Corporation of the City of Pickering j Appendix 3 — Draft management representation letter Appendix 3 -Draft management representation letter © Deloitte LLP and affiliated entities. [Organization letterhead] June 18, 2018 Deloitte LLP 400 Applewood Crescent Suite 500 Vaughan ON L4K 0C3 Dear Ms. Jesty, Subject: Consolidated financial statements of The Corporation of the City of Pickering for the year ended December 31, 2017 This representation letter is provided in connection with the audit by Deloitte LLP ("Deloitte" or "you") of the consolidated financial statements of The Corporation of the City o Pickering (the "City" or "we" or "us") for the year ended December 31, 2017 and a summary of significant accounting policies and other explanatory information (the "Financial Statements") for the purpose of expressing an opinion as to whether the Financial Statements present fairly, in all material respects,'' the financial position, results of operations, changes in net financial assets and cash flows of the City in accordance with Public Sector Accounting Standards ("PSAS"). We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves: Financial statements 1. We have fulfilled our responsibilities as set out in the terms of the Master Services Agreement between the City and Deloitte dated October 28, 2016 for the preparation of the Financial Statements in accordance with PSAS. In particular, the Financial Statements are fairly presented, in all material respects, and present the financial position of the City as at December 31, 2017, and the results of its operations, changes in its net financial assets and its cash flows for the year then ended in accordance with PSAS. 2. Significant assumptions used in making estimates, including those measured at fair value, are reasonable. In preparing the Financial Statements in accordance with PSAS, management makes judgments and assumptions about the future and uses estimates. The completeness and appropriateness of the disclosures related to estimates are in accordance with PSAS. The City has appropriately disclosed in the Financial Statements the nature of measurement uncertainties that are material, including all estimates where it is reasonably possible that the estimate will change in the near term and the effect of the change could be material to the Financial Statements. The measurement methods, including the related assumptions and models, used in determining the estimates, including fair value, were appropriate, reasonable and consistently applied in accordance with PSAS and appropriately reflect management's intent and ability to carry out specific courses of action on behalf of the entity. No events have occurred subsequent to December 31, 2017 that require adjustment to the estimates and disclosures included in the Financial Statements. 23 Deloitte LLP June 18, 2018 Page 2 There are no changes in management's method of determining significant estimates in the current year. 3. All related party relationships and transactions have been appropriately accounted for and disclosed in the Financial Statements in accordance with the requirements of PSAS. 4. We have determined that the Financial Statements are complete as of the date of this letter as this is the date when there are no changes to the Financial Statements (including disclosures) planned or expected. Financial Statements have been approved in accordance with our process to finalize financial statements. 5. We have completed our review of events after December 31, 2017 and up to the date of this letter. All events subsequent to the date of the Financial Statements and for which PSAS requires adjustment or disclosure have been adjusted or disclosed. Accounting estimates and disclosures included in the Financial Statements that are impacted by subsequent events have been appropriately adjusted. 6. The Financial Statements are free of material errors and omissions. We believe that the effects of any uncorrected Financial Statement misstatements pertaining to the current period presented, are immaterial, both individually and: in the aggregate, to the Financial Statements taken as a whole. A list of the uncorrected misstatements aggregated by you is attached in Appendix A. Information provided 7. We have provided you with: a. Access to all information of which we are aware that is relevant to the preparation of the Financial Statements, such as records, documentation and other matters. b. All relevant information as well as additional information that you have requested from us for the purpose of the audit; and, c. Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. 8. Except as listed in Appendix A, all transactions have been properly recorded in the accounting records and are reflected in the Financial Statements. . 9. We have disclosed to you the results of our assessment of the risk that the Financial Statements may be materially misstated as a result of fraud. 10. We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves: a. Management; b. Employees who have significant roles in internal control; or c. Others where the fraud could have a material effect on the Financial Statements. 11. We have disclosed to you all information in relation to allegations of actual, suspected or alleged fraud, or illegal or suspected illegal acts affecting the City. 12. We have disclosed to you all communications from regulatory agencies concerning non-compliance with or deficiencies financial reporting practices and all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the Financial Statement's. 24 Deloitte LLP June 18, 2018 Page 3 13. We have disclosed to you the identity of the entity's related parties and all the related party relationships and transactions of which we are aware, including guarantees, non -monetary transactions and transactions for no consideration and participation in a defined benefit plan that shares risks between group entities. 14. We acknowledge our responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud and error. 15. We have disclosed to you all known, actual or possible litigation and claims, whether or not they have been discussed with our lawyers, whose effects should be considered when preparing the Financial Statements. As appropriate, these items have been disclosed and accounted for in the Financial Statements in accordance with PSAS. Independence matters For purposes of the following paragraphs, "Deloitte" shall mean Deloitte LLP and Deloitte Touche Tohmatsu Limited, including related member firms and affiliates. 16. Prior to the City having any substantive employment conversations with a former or current Deloitte engagement team member, the City has held discussions with Deloitte and obtained approval from the Executive Committee of the Council. 17. We have ensured that all services performed by Deloitte with respect to this engagement have been pre -approved by the Executive Committee in accordance with established approval policies and procedures, if any. Communications with taxation and regulatory agencies 18. We have disclosed to you all communications from: a. Taxation authorities concerning assessments or reassessments that could have a material effect on the Financial Statements; and b. Regulatory agencies concerning noncompliance with or potential deficiencies in, financial reporting requirements. Deficiencies in internal control 19. We have communicated to you all deficiencies in internal control of which we are aware. We have disclosed to you any change in the City's internal control over financial reporting that occurred during the current year that has materially affected, or is reasonably likely to materially affect, the City's internal control over financial reporting. Work of management's experts 20. We agree with the work of management's experts in evaluating the valuation of post -employment benefits liability and WSIB benefits liability and have adequately considered the capabilities of the experts in determining amounts and disclosures used in the Financial Statements and underlying accounting records. We did not give any, nor cause any, instructions to be given to management's experts with respect to values or amounts derived in an attempt to bias their work, and we are not aware of any matters that have impacted the independence or objectivity of the experts. Liabilities and contingencies 21. We have disclosed to you all liabilities, provisions, contingent liabilities and contingent assets, including those associated with guarantees, whether written or oral, and they are appropriately reflected in the Financial Statements. 25 Deloitte LLP June 18, 2018 Page 4 Loans and receivables 22. The City is responsible for determining and maintaining the adequacy of the allowance for doubtful notes, loans, and accounts receivable, as well as estimates used to determine such amounts. Management believes the allowances are adequate to absorb currently estimated bad debts in the account balances. Employee future benefits 23. Employee future benefit costs, assets, and obligations have been properly recorded and adequately disclosed in the Financial Statements including those arising under defined benefit plans as well as termination arrangements. We believe that the actuarial assumptions and methods used to measure defined benefit plan assets, liabilities and costs for financial accounting purposes are appropriate in the circumstances. Government transfers 24. We have disclosed to you all correspondence relating to government transfers that the City has had with the funding body. 25. We have assessed the eligibility criteria and determined that the City is an eligible recipient for the government transfers received. 26. We have assessed the stipulations attached with the funding and have recognized the revenue in accordance with meeting the stipulations required. 27. All government transfers that have been recorded as deferred revenue give rise to an obligation that meets the definition of a liability. Those liabilities have been properly recorded and presented in the Financial Statements. Tax Revenues 28. We have appropriately recorded tax assets and revenues when they meet the definition of an asset in accordance with Section PS 1000, Financial Statement Concepts, when they are authorized and when the taxable event occurs. These amounts have been appropriately measured in accordance with PS 3510, Tax Revenue, and have not been grossed up for any amount of tax concessions. Tangible capital assets 29. Tangible capital assets have been recorded properly and consistently according to the standards in Section PS 3150, Tangible Capital Assets. 30. Contributed tangible capital assets have been appropriately recorded at fair value, unless fair value is not reasonably determinable, and in such case, have been recorded at an appropriate nominal value. All contributed tangible capital assets have been appropriately disclosed. 31. We have assessed the useful lives of tangible capital assets and have determined all tangible capital assets contribute to the City's ability to provide goods and services and therefore do not require a write down. Environmental liabilities/contingencies 32. We have considered the effect of environmental matters on the City and have disclosed to you all liabilities, provisions or contingencies arising from environmental matters. All liabilities, provisions, contingencies and commitments arising from environmental matters, and the effect of environmental matters on the carrying values of the relevant assets are recognized, measured and disclosed, as appropriate, in the Financial Statements. 26 Deloitte LLP June 18, 2018 Page 5 Government Business Enterprises and Government Partnerships 33. The City has appropriately classified its investments in Veridian Corporation as a Government Business Partnership. With regard to the City's investment in Veridian Corporation, we have disclosed to you any events that. have occurred and facts that have been discovered with respect to such investment that would affect the investment's value as reported in the financial statements. Liabilities for contaminated sites 34. We have evaluated all of our tangible capital assets that we have direct responsibility for or accept responsibility for, and have not identified any sites in which contamination exceeds an environmental standard. Other matters 35. We have disclosed to you all the documents that we expect to issue that may comprise other information, in the context of CAS 720, The Auditor's Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements. 36. The City has satisfactory title to and control over all assets, and there are no liens or encumbrances on such assets. We have disclosed to you and in the Financial Statements all assets that have been pledged as collateral. 37. We have disclosed to you, and the City has complied with all aspects of contractual agreements that could have a material effect on the Financial Statements in the event of non-compliance, including all covenants, conditions or other requirements of all outstanding debt. Yours truly, The Corporation of the City of Pickering,, Stan Karwowski Director of Finance and Treasurer Tony Prevedel Chief Administrative Officer 27 Appendix A The Corporation of the City of Pickering Summary of uncorrected financial statement misstatements Year ended December 31, 2017 As part of our audit, we identified the following uncorrected financial statement misstatement: DR Accumulated amortization $1,270,101 CR Amortization expense $1,270,101 To correct overstatement of amortization expense for the year as a result of revisions to best estimates of useful lives of tangible capital assets for the year. 28 Deloitte 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. ATTACHMENT;`{ __ _TO REPORT ## 1";-'1 Ai 11 `1 DRAFT AS AT 05/30/2018 Consolidated financial statements of The Corporation of the City of Pickering December 31, 2017 30 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering December 31, 2017 Table of contents Independent Auditor's Report 1-2 Consolidated statement of financial position 3 Consolidated statement of operations 4 Consolidated statement of change in net financial assets 5 Consolidated statement of cash flows 6 Notes to the consolidated financial statements 7-27 31 Deloitte Independent Auditor's Report To the Members of Council, Inhabitants and Ratepayers of the Corporation of the City of Pickering DRAFTDAMj /30/2018 400 Applewood Crescent Suite 500 Vaughan ON L4K 0C3 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte,ca We have audited the accompanying consolidated financialistatem ents of the Corporation of the City of Pickering, which comprise the consolidated statement of financial position as at December 31, 2017, and the consolidated statements of operations, change in net financial assets/d cash flows for the year then ended, and a summary of significant accounting4policies and other.explanatory information. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation a -fair presentation of these consolidated financial statements in accordance with Canadian public sector ecounting,standards, and for such internal control as management determines is necessary to ele the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility, - Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our�audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis fo'r our audit opinion. Member of Deloitte Touche Tohmatsu Limited 32 DRAFT AS AT 05/30/2018 Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Corporation of the City of Pickering as at December 31, 2017 and the results of its operations, changes in its net financial assets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Chartered Professional Accountants Licensed Public Accountants June 18, 2018 Page 2 33 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Consolidated statement of financial position as at December 31, 2017 2017 2016 Financial assets Cash and cash equivalents 89,766,742 78,673,206 Investments (Note 3) 82,226,068 48,857,964 Taxes receivable 16,571,391 15,733,430 Accounts receivable 4,780,330 3,089,630 Note receivable (Note 17) 3,796,946 4,055,276 Investment in Veridian Corporation (Note 4 (b)) 53,393,124 51,307,386 Promissory notes receivable (Note 5) 25,069,000 25,069,000 Land held for resale 294,531 275,898,132 226,785,892 Liabilities Accounts payable and accrued liabilities Other current liabilities Deferred revenue (Note 6) Long-term liabilities (Note 9) Post -employment benefit liability (Note 8 (a)) WSIB benefit liabilities(Note 8 (b)) Net financial assets Non-financial assets Tangible capital assets (Note 10) Prepaid expenses Inventory 26,414,563 , 4,694,538 65,194,413 31,412,982 5,609,656 1,862,876 '135,189,028 19,683,527 133,307 60, 501, 567 21,455,816 4,959,500 1,806,100 108, 539, 817 140,709,104 118,246, 075 240,256,987 223,836,631 295,196 248,303 427,332 222,512 240,979,515 224,307,446 Accumulated surplus (*Y6te'11) 381,688,619 342,553,521 The accompanying notes to the consolidated financial statements are an integral part of this consolidated financial statement. 34 Page 3 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Consolidated statement of operations year ended December 31, 2017 2017 2016 Budget (Note 18) Actual Actual Revenue Residential and farm taxation 47,281,909 47,468,880 44,950,264 Commercial and industrial taxation 10,798,600 10,793,717 10,845,299 Taxation from other governments 8,383,281 8,644,938 8,740,388 User charges 9,576,564 11,082,163 10,825,327 Government grants and fees 6,230,677 6,356,344 3,218,352 Other contributions and donations 2,601,000 2,189,348 1,022,571 Development charges and developer contributions earned 11,182,834 1,468,880 2,099,895 Contributed tangible capital assets - 5,014,463 3,480,656 Investment income 320,000 941,197 565,808 Penalties and interests on taxes2,315,000 2,362,493 2,379,422 Fines 89;0,0052 <'; 855,391 839,035 Interest on promissory notes 1,229,138 - 1,229,,138 1,229,138 Sale of land 2,650,000 - - Equity share of Veridian; Corporation earnings (Note 4 (c)) 4,179,608 4,252,377 Other320,626 358,861 1,206,986 Gain on disposal of tangible capital assets „ 22,927,289 - 103,741,629 125,872,710 95,655,518 Expenses (Note 19) General government 17,963,501 16,298,488 15,638,335 Protection to persons and roperty 24,934,241 23,979,527 22,938,397 Transportation services =r 13,277,102 12,296,200 12,032,596 Environmental services = x 3,722,393 3,624,256 3,441,978 Social and family services 816,363 765,708 793,371 Recreational and cultural services 27,166,151 27,190,180 26,572,990 Planning and development f 3,508,811 2,583,253 2,682,724 Loss on disposal of tangible capital assets - - 214,114 91,388,562 86,737,612 84,314,505 Annual surplus 12,353,067 39,135,098 11,341,013 Accumulated surplus, beginning of year 342,553,521 342,553,521 331,212,508 Accumulated surplus, end of year 354,906,588 381,688,619 342,553,521 The accompanying notes to the consolidated financial statements are an integral part of this consolidated financial statement. Page 4 35 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Consolidated statement of change in net financial assets year ended December 31, 2017 2017 2016 Budget (Note 18) Actual Actual Annual surplus 12,353,067 39,135,098 11,341,013 Acquisition of tangible capital assets (44,594,580) (31,772,704) (21,134,606) Amortization of tangible capital assets 10,119,677 10,800,559 10,169,146 (Gain) loss on disposal of tangible capital assets Proceeds on disposal of tangible capital assets (22,927,289) 214,114 23,501,156 36,100 (22,121,836) 18,736,820 625,767 Transfer of assets under construction to tangible capital assets Assets under construction expensed Acquisition of inventory of supplies Use of inventory of supplies Acquisition of prepaid expenses Use of prepaid expenses 3,762,471 2,523,484 215,451 25,591 3,977,922 2,549,075 818,222) (532,060) 613,402 639,544 (295,196) (248,906) 248,303 367,985 (251,713) 226,563 Change in net financial assets Net financial assets, beginning of year Net financial assets, end of year 22,121,836) 22,463,029 3,401,405 18,246,075 118,246,075 114,844,670 96,124,239 140,709,104 118,246,075 The accompanying notes to the consolidated financial statements are an integral part of this consolidated financial statement. 36 Page 5 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Consolidated statement of cash flows year ended December 31, 2017 2017 2016 Operating transactions Annual surplus Non cash items Amortization of tangible capital assets (Gain) loss on disposal of tangible capital assets Equity share of Veridian Corporation Contributed tangible capital assets recorded in revenue Change in non-cash operating items Taxes receivable Accounts receivable Accounts payable and accrued liabilities Other current liabilities Deferred revenue Post -employment benefit liability WSIB benefit liabilities Inventory Land held for resale Prepaid expenses Capital transactions Acquisition of tangible capital assets (net of transfers and contributions) Proceeds on disposal of tangible capital assgts 39,135,098 11,341,013 10,800,559 10,169,146 (22,927,289) 214,114 (4,179,608) (4,252,377) (5,014,463) (3,480,656) (837,961) (213,466) (1,690,700) (438,051) 6,731,036 3,422,472 4,561,231 10,103 4,692,846 4,234,046 650,156 295,700 56,776 33,000 204;820) 107,484 4,531) - 46,893) 119,079 31,431,437 21,561,607 (22,780,319) (15,104,875) 23,501,156 36,100 720,837 (15,068,775) Investing transactions (Increase) decrease in investments Dividends received fro Veridian Corporation (33,368,104) 565,194 2,093,870 1,947,090 (31,274,234) 2,512,284 Financing transactions Proceeds from debentures issued Principal repayment of debentures Decrease in note receivable 12,941,000 6,473,000 (2,983,834) (2,734,714) 258,330 251,018 10,215,496 3,989,304 Increase in cash and cash equivalents 11,093,536 12,994,420 Cash and cash equivalents, beginning of year 78,673,206 65,678,786 Cash and cash equivalents, end of year 89,766,742 78,673,206 Cash and cash equivalents consists of Cash 11,376,673 18,182,861 Cash equivalents 78,390,069 60,490,345 89,766,742 78,673,206 The accompanying notes to the consolidated financial statements are an integral part of this consolidated financial statement. Page 6 37 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 1. Significant accounting policies The consolidated financial statements ("the financial statements") of The Corporation of the City of Pickering (the "City") are the representations of management prepared in accordance with accounting standards established by the Public Sector Accounting Board ("PSAB") of Chartered Professional Accountants of Canada (CPA Canada). Significant accounting policies adopted by the City are as follows: (a) Reporting entity (1) Consolidated financial statements The consolidated financial statements reflect the assets, liabilities, revenues and expenses of the reporting entity. The reporting entity is comprised of the activities of all committees of Council and the City of Pickering Public Library Board which is controlled by the City. All material inter -fund transactions and balances are eliminated on consolidation. (ii) Investment in Veridian Corporation The City's investment in Veridian Corporation is"accounted foron a modified equity basis, consistent with Canadian public sector accounting standards for invesfryents in government business partnerships. Under the modified equity basis, Veridian Corporation's accounting policies are not adjusted to conform to those of the City and inter -organizational transactions and balances are not eliminated. The City recognizes its equity interest in the annual earnings or loss of Veridian Corporation in its consolidatedstatement of operations with a corresponding increase or decrease in its investment asset account. Dividends that the City may receive from Veridian Corporation and other capital transections are reflected as adjustments in the investment asset account. (iii) Operations of School Boards, and the Region: of Durham The taxation, otilergrevenues, expenditures, assets and liabilities with respect to the operations of the school boards and the Region'of Durham (the "Region") are not reflected in these consolidated"financial statements. (iv) Trust funds Trust funds and their related /operations administered by the City are not consolidated, but are reported separately on the Trust Funds Statement of Financial Activities and Statement of Financial Position. (b) Basis of accounting r) Accrual basis of accounting Revenue and expenses are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenues as they are earned and measurable; expenses are recognized. as they are incurred and measurable as a result of the receipt of goods and services and the• creation of a legal obligation to pay. (ii) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash. Cash equivalents have a short-term maturity of three months or less from the date of acquisition. (iii) Investments Long-term investments are recorded at cost and any loss in value which is considered other than temporary is recorded as appropriate. Any premium or discount at purchase of an investment is amortized over the life of the investment. Page 7 38 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 1. Significant accounting policies (continued) (b) Basis of accounting (continued) (iv) Tangible capital assets ("TCA'). Tangible capital assets are recorded at cost less accumulated amortization. Cost includes all costs directly related to acquisition or construction of the tangible capital asset including transportation costs, installation costs, design and engineering fees, legal fees and site preparation costs. Amortization is recorded on a straight-line basis over the estimated life of the tangible capital asset commencing once the asset is available for use as follows: Buildings 15 to 45 years Machinery and equipment 2 to 25 years Vehicles 5 to 15 years Infrastructure - Roads 10 to 50 years Infrastructure - Storm sewers 5 to 100 years Infrastructure - Sidewalks 2,00to 40;years Infrastructure = Parks 10 to 4 years Information technology hardware r' 4 t© 84ears Library collection materials ( 4 to 7 years. Furniture and fixtures 10 to 50 years One-half of the annual amortization is charged in: The year of acquisition and in the year of disposal. Assets under construction are notamortized until the asset is available for productive use. Land is not amortized. z Tangible capital assets received as ctributions`are recorded at their fair value at the date contributed, and that amount is also recorded"as reyen e. (v) Accounting for Property Tax Capping Provision resulting from the Ontario Fair Assessment System The net impact oriproperty taxesasa result of the application of the capping provisions does not affect the Consolidated Statementaof Operations as the full amounts of the property taxes were levied twever, the' capping adjustments are reported on the Consolidated Statement of Financial ' osition as a receivable/payable from/to the Region. (vi) Deferred revenue Deferred revenues represent user charges and fees which have been collected but for which the related services haveet'to be performed. These amounts will be recognized as revenues in the fiscal year the services are performed. In addition, any contributions received with external restrictions are -deferred until the related expenditures are made. (vii) Post -employment benefits The present value of the cost of providing employees with future benefit programs is recognized as employees earn these entitlements through service. Actuarial gains and losses are amortized over the average remaining service period ("ARSP"). The actuary determined ARSP to be between 11 to 13 years, depending on the employee group. For WSIB benefit obligations that arise from specific events that occur from time to time, the cost is recognized immediately in the period the events occur. Actuarial gains and losses are amortized over the average remaining service period of 15 years. (viii) Inventory Inventory is valued at the lower of cost and replacement cost. Cost is determined on a weighted -average basis. Page 8 39 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated fmancial statements December 31, 2017 1. Significant accounting policies (continued) (b) Basis of accounting (continued) (ix) Government transfers Government transfers are recognized as revenue by the City in the period in which the transfers are authorized and any eligibility criteria are met, unless they are restricted through stipulations that require specific actions to be carried out in order to keep the transfer or discharge the liability. For such transfers, revenue is recognized when the stipulation has been met. (x) Tax revenue Tax revenue is recognized on all taxable properties within the City that are included in the tax roll provided by the Municipal Property Assessment Corporation, using property tax values included in the tax roll or property tax values that can be reasonably estimated by the City as it relates to supplementary or omitted assessments, at tax rat%authorized by Council for the City's own purposes in the period for which the tax,isat vied (xi) Intangible assets Intangible assets are not recognized as assets in the financial statements. (xii) Contaminated sites Contaminated sites are the result of contamination being introduced into air, soil, water or sediment of a chemical, organic, or radio etive:material or lir organism that exceeds an environmental standard. A liability forrremedOon of contaminated sites is recognized, net of any expected recoveries, when all of the follawing criteria are met: (a) an environmental standard exists; ,� (b) contamination exceeds the earnvironmental"standard; (c) the City is dir atty e ponsible or accepts responsibility for the liability; eco (d) futureeconomic benefits i uwill be given up; and (e) a reasonable estimate ofthe liability can be made. A liability is recorded only for`sites that are not in productive use or if there was an unexpected event that resulted in contamination. Changes in estimates are recorded in the City's statement of operations. The City does not have any liability for contaminated sites recorded in the consolidated financial statements. (xiii)Land held for resale Land permanently removed from service that meet the criteria for inventory held for resale are recorded as "land held for resale" on the Consolidated Statement of Financial Position and is recorded at the lower of cost and net realizable value. Those that do not meet these criteria continue to be recorded as part of "tangible capital assets" on the Consolidated Statement of Financial Position. (xiv)Use of estimates The preparation of financial statements in conformity with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Accounts involving significant estimates include allowance for doubtful accounts, certain accrued liabilities, post -employment benefits liability, WSIB liabilities and estimates relating to the useful lives of tangible capital assets. Actual results could differ from these estimates.. Page 9 40 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 2. Operations of school boards and the Region of Durham Further to Note 1 (a) (iii) requisitions are made by the Region of Durham and School Boards requiring the City to collect property taxes and payments in lieu of property taxes on their behalf. The amounts collected and remitted are summarizes as follows: 2017 2016 Region School board Region School board Taxation Payments in lieu of taxes 106,559,478 45,352,981 102,922,914 44,092,112 6,457,366 381,700 6,603,046 389,819 113,016,844 45,734,681 109,525,960 44,481,931 3. Investments 2016 Cost Market(alue Cost Market vaule $ $ $ $ Investments 82,226,068 81,919,658 48,857,964 48,824,214 Investments are comprised of deposit notes, bons and guaranteed nvestment certificates. 4. Investment in Veridian Corporation (a) Veridian Corporation is owned bthepty of Pickering Town of Ajax, Municipality of Clarington and the City of Belleville. The City has a 1 per cent interest in Veridian Corporation. Veridian Corporation, as a government_ business:partnership, is accounted for on the modified equity basis in these consolidated fifiancial`statements Veridian Corporation serves as the electrical distribution utility for a numb4of communitieslncluding_the four noted above and conducts non-regulated utility service venturers through its subsidiaries. Page 10 41 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 4. Investment in Veridian Corporation (continued) The following table provides condensed supplementary consolidated financial information for the corporation and its subsidiaries for the year ended December 31. All amounts in tables are disclosed in thousands of dollars: 2017 2016 (000's) (000's) $ $ Assets Current 77,555 89,713 Capital and intangibles 269,380 252,736 Other 1,097 4,058 Regulatory balances Liabilities Current 116,129 101,166 Long-term debt , 65,021 85,532 Other 29,765 26,814 210,915 213,512 348,032 346,507 2,852 2,530 350,884 349,037 Shareholders' equity Share capital Contributed capital Accumulated other comprehensi Retained earnings 67,260 67,260 25 25 (316) (340) 63,258 58,195 130,227 125,140 Regulatory balanc es/ 9,742 10,385 350,884 349,037 Comprehensive income Commodity revenue 280,206 338,009 Commodity expenses (277,975) (331,487) Distribution revenue 52,225 52,264 Other income 2,630 3,171 Operating expenses (41,620) (40,220) Other expense (2,593) (4,469) Other comprehensive income (loss) 24 (77) Net movements in regulatory balances, net of tax 965 (3,372) Income tax expense (3,668) (3,448) 10,194 10,371 Page 11 42 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 4. Investment in Veridian Corporation (continued) (b) City of Pickering's investment represented by: 2017 2016 Promissory notes receivable (Note 5) 25,069,000 25,069,000 Investments in Veridian Corporation Initial investment in shares of the Corporation 30,496,196 30,496,196 Accumulated eamings 50,579,682 46,400,074 Accumulated dividends received (28,498,462) (26,404,592) Adjustment to value of investment 815,708 815,708 �• 53,393,124 51,307,386 (c) Equity in Veridian Corporation 2017 2016 Balance, beginning of year Equity share of net earnings for the year Dividend received from Veridian Corpora6 Balance, end of year (Note 11) 79,419,406 77,114,119 4,179, 608 4,252,377 (2093,870) (1,947,090) 81,505,144 79,419,406 " J (d) Contingencies and guarantees ofVeridian Corporation'(the "Corporation') as disclosed in their consolidated financial statements areas follows: Insurance claims The Corpdatton is a member of the Municipal Electric Association Reciprocal Insurance Exchange ("MARIE") which Was created on January 1, 1987. A reciprocal insurance exchange may be defined as a group of persons formed for the purpose of exchanging reciprocal contracts of indemnity or inter; insurance with each other. MEARIE provides general liability insurance:to member eleicutilities. MEARIE also provides vehicle and property insurance to the Corporation. Insurance premiums charged to each member utility consist of a levy per $1,000 of service revenue subject to a credit or surcharge based on each electric utility's claims experience. The maximum coverage is $30,000,000 per occurrence for liability insurance, $21,000,000 for vehicle insurance and $119,736,000 for property insurance, plus $10,000,000 excess coverage on top of the regular liability and vehicle coverage. (ii) Contractual obligation - Hydro One Networks Inc. ("HONI") The Corporation's subsidiary, Veridian Connections Inc. ("VCI"), is party to a connection and cost recovery agreement with HONI related to the construction by HONI of a transformer station designated to meet VCI's anticipated electricity Toad growth. Construction of the project was completed during 2007 and VCI connected to the transformer station during 2008. To the extent that the cost of the project is not recoverable from future transformation connection revenues, VCI is obligated to pay a capital contribution equal to the difference between these revenues and the construction costs allocated to VCI. The construction costs allocated to VCI for the project are $9,975,000. The Corporation has recorded a liability and a corresponding intangible asset for $1,212,000 as at December 31, 2017 (2016 -$1,212,000), based on management's best estimate of the future transformation connection revenue shortfall. HONI is expected to perform a true -up based on actual load at the end of the tenth and fifteenth anniversaries of the in-service date. (i) Page 12 43 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements. December 31, 2017 4. Investment in Veridian Corporation (continued) (d) Contingencies and guarantees of Veridian Corporation (the "Corporation') as disclosed in their consolidated financial statements are as follows: (continued) (iii) General claims From time to time, the Corporation is involved in various lawsuits, claims and regulatory proceedings in the normal course of business. In the opinion of management, the outcome of such matters will not have a material adverse effect on the Corporation's consolidated financial position and results of operations or cash flows. (e) Lease commitments Future minimum lease payment obligations under operating leases are as follows: 2018 2019 2020 2021 2022 Thereafter 5. Promissory notes receivable $ (000's) 41 33 32 24 2 58 190 2017 2016 Promissory note.,receivable from Veridian Corporation maturing December31, 2018 andeating interest at �' the greater of 6% or the. Ontario Eneirgy Board deemed long term debt rate on an. annual basis to maturity Promissory note receivable from Veridian Connections Inc. maturing Noember 1, 2039 and bearing interest at the Ontario Energy Board deemed long-term debt rate for each successhe fig year period thereafter (4.47% effectie January 1, 2015) 7,095,000 7,095,000 17, 974, 000 17, 974, 000 25,069,000 25,069,000 Interest revenue earned from these notes receivable totaled $1,229,138 (2016 - $1,229,138). The promissory note from Veridian Corporation is convertible into common shares at the rate of one common share for every $1,000 of principal amount, at the option of the City. The note from Veridian Connections Inc. is no longer convertible but the City may demand full or partial repayment with six months' notice with certification that the funds are required for municipal purposes. The City has signed an inter -creditor agreement confirming the subordinated ranking of these promissory notes to the senior debt financing issued by Veridian. On November 20, 2014, the Ontario energy Board's deemed long-term rate has been established for the five year period commencing January 1, 2015 until December 31, 2019 at 4.47%. This rate will be reset on January 1, 2020. Page 13 44 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 6. Deferred revenue 2017 2016 Obligatory Reserve Funds Development charges Parkland Federal gas tax Third party/Developer's Contributions ReseR,e Fund Public benefits 48,100,585 43,318,105 4,532,056 3,994,401 5,654,549 8,261,976 2,957,593 2,962,791 141,387 Other unearned revenues 61,386,170 58,537,273 3,808,243 1,964,294 65,194,413 60,501,567 Continuity of deferred revenue is as follows: Balance, beginning of year Restricted funds received General funds received Interest earned (restricted funds) 2017 . 2016 $ $ 60,501,567 56,267,521 9,169,370 7,879,649 2,900,813 873,338 830,571 856,244 12,900,754 9,609,231 Earned restricted revenueransferred to operations Earned revenue transferred to operations 7,151,044 4,660,574 1,056,864 714,611 8,207,908 5,375,185 Balance, end of year'-, 65,194,413 60,501,567 7. Interfund loans As a means of funding various capital acquisitions, funds are borrowed by the Capital Fund from Development Charges deferred revenue (obligatory reserve funds). These funds are secured by promissory notes with interest rates ranging from 1.83% to 2.64% and various payment terms ranging from 5 years to 10 years. The financing arrangements and ultimate repayment are approved by Council through the current budget process. Although these notes have payment terms as noted above, they are repayable on demand. The following is a summary of the related interfund loans: 2017 2016 Roads and streetlights Community facilities, libraries and parks Protection services Stormwater system 1,226,910 773,631 1,385,745 1,700,707 337,226 64,004 645,360 943,771 3,595,241 3,482,113 Page 14 45 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 8. Post -employment benefits liability (a) Post -employment benefits liability The City makes available to qualifying employees who retire before the age of 65, the opportunity to continue theircoverage for benefits such as post-retirement extended healthcare benefits. Coverage ceases at the age of 65. The City also provides full time and permanent part-time employees a sick time entitlement and any unused entitlement is accumulated year to year. This accumulated entitlement is not vested and is forfeited at the time of retirement or termination. The most recent actuarial valuation of the post -employment benefits was performed at December 31, 2017. In the current year, a plan amendment was made to provide dental benefits to union retirees effective July 12, 2017. The impact of this plan addition has been recognized immediately as a plan amendment cost and shown as part of the prior period cost line in the table below. Information about the City's benefits liability is as follows: 2017 2016 Accrued benefits liability, beginning of year 4,959,500 4,663,800 Plan amendment 384,991 - Current service costs 416,276 402,200 Interest on accrued benefits 223,108 226,800 Amortization of actuarial losses 186,200 186,200 Benefits paid during the year 1 i �, (560,419) (519,500) Accrued benefits liability, end ofyear 5,609,656 4,959,500 Accrued benefit oblig�%io . Unamortized actuanl-losses Accrued benefts` liability, end ofyear • 11,126,073 6,446,600 (5,516,417) (1,487,100) 5,609,656 4,959,500 The main actuarial assumptions employed in the actuarial valuations are as follows: (1) Discount rate The present value as at December 31, 2017 of the future benefits was determined using a discount rate of 3.75%"(2016 - 3.5%). (ii) Dental costs The dental cost trend rate was 3.75% (2016 - 3.75%) increase per annum. (111) Health costs Health costs were assumed to increase at 6.75% (2016 - 6.50%) and decrease by 0.33% (2016 - 0.25%) increments per year to an ultimate rate of 3.75% per year in 2027 and thereafter. (b) Workplace Safety and Insurance Board (WSIB) benefit liabilities Effective January 1, 2001, the City became a Schedule II employer under the Workplace Safety & Insurance Act and follows a policy of self-insurance for the risk associated with paying benefits for workplace injuries for all its employees. The WSIB administers the claims related to workplace injuries and is reimbursed by the City. The most recent actuarial valuation of the WSIB benefits was performed at December 31, 2016. Page 15 46 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 8. Post -employment benefits liability (continued) (b) Workplace Safety and Insurance Board (WSIB) benefit liabilities (continued) Information about the City's WSIB liability is as follows: 2017 2016 $ $ Accrued WSIB liability, beginning of year 1,806,100 1,773,100 Current service cost 124,773 108,600 ' Interest on accrued benefits 89,144 63,400 Amortization of actuarial losses 30,254 Benefits paid during the year (187,395) (139,000) 1,862,876 1,806,100 Accrued benefit obligation Unamortized actuarial losses Accrued benefits liability, end of year 2,286,427 2,259,905 (423,551) (453,805) 12,876 1,806,100 The main actuarial assumptions employed in the actuarial valuations are as follows: (i) Discount rateY The present value as at December 3120174the future benefits was determined using a discount rate of 4.0% (2016 3 5°°`),� t (ii) Inflation rated/' The rate of inflation was assumed to be 1.75°A-(2016 - 2.0%) per annum. (111) WSIB Administration Rate=„ Liabilities frir WSIB benefits have been:increased 38% to reflect the administration rate charged by WSIB Ty A WSIB Reserve.Fund was established in 2001. The Reserve Fund balance at December 31, 2017 was $3,209,349 (2016 $3,001,701). In addition, the City purchased two insurance policies that protect the,Ci y against significant claims. The occupational accident insurance pays loss claims up to$500,000 per work related accident. The excess workers compensation indemnity insurance has a $500,000 deductible and will pay for claims up to and including $15,000,000 per work related accident. 9. Long-term liabilities (a) The balance of long-term liabilities is made up of the following: 2017 2016 The municipality is responsible for the payment of principal and intrest charges on long-term liabilities issued by the Regional Municipality of Durham on the City's behalf. At the end of the year the outstanding principal amount of this liability is 31,412,982 21,455,816 Page 16 47 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 9. Long-term liabilities (b) The above Tong -term liabilities have maturity dates of July 12, 2021 and 2022, November 21, 2018, October 15, 2020, September 29, 2021, October 16, 2018 and 2023, July 2, 2019.and 2029, October 17, 2021, 2026 and 2031 and October 13, 2022, 2027, 2032 and 2037 with various interest rates ranging from 1.10% to 5.20%. Principal repayments are summarized as follows: 2018 5,598,009 2019 2,693,986 2020 2,720,344 2021 2,883,385 2022 1,907,998 Thereafter 15,609,260 31,412,982 (c) Long-term liabilities include principal sums of $582000 22016 = $582,000) which may be refinanced by the issuance of debentures over a further period "not fo exceed 1Q years and $2,415,000 (2016 - $2,415,000) which may be refinanced by theissuance of debentures over a further period not to exceed 5 years. (d)The above long-term liabilities have been a g- ppfaved by Council by-law. The annual principal and interest payments required to service then habilitres>are within' the annual debt repayment limit prescribed by the Ministry of Municipal Affairs ad,:Housing. (e) Interest expense recorded in the yeairelating fto these longterm liabilities is $715,544 (2016 - $625,740). ; 10. Tangible capital assets Information relating to tangible capital, assets is as follows: (i) Contributed taiagible capital assets y\ The City records tangible capital assets contributed by an external party at fair value on the date contributed. Typical examples a e roads, storm sewers and sidewalks installed by a developer as part of a subdivision or development agreement. Contributions of tangible capital assets in 2017 amounted to $5,014,463 (2016 - $3,480,656). (ii) Tangible capital assets recognized at nominal value Land under roads are assigned a nominal value of one Canadian dollar because this land only supports or is intended to support road infrastructure and the majorityof land acquired supporting road allowances was acquired at no cost. (iii) Works of art and historical treasures The City has a museum which holds various historical treasures and historical buildings pertaining to the heritage and history of the City of Pickering. These items are not recognized as tangible capital assets in the financial statements because a reasonable estimate of the future benefits associated with such property cannot be made. Any acquisition or betterment of these assets is recognized as an expense in the financial statements. (iv) Other The net book value of tangible capital assets not being amortized because they are under construction is $18,379,602 (2016 - $11,233,428). During the year, there were no write-downs of assets (2016 - $Nil) and no interest was capitalized during the year (2016 - $Nil). Page 17 48 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial staternents December 31, 2017 10. Tangible capital assets (v) Gain on sale of tangible capital assets The gain on disposal of tangible capital assets includes the sale of multiple City land parcels, for net proceeds of $23,379,228, which had carrying values of $459,852 at the time of the sales, resulting in a total gain of $22,919,376. Page 18 49 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 10. Tangible capital assets (continued) Machinery Infrastructure and Storm Land Buildings equipment Vehicles Roads sewers Sidewalks Information Library Furniture Assets technology collection and under Parks hardware materials fixtures construction 2017 Cost Balance, beginning of year Add Additions during the year Less Disposals/transfers during the year Balance, end of year $ 55,691,303 80,777,919 9,045,684 13,167,746 127,621,696 90,761,058 15,247,739'>, ,:33,672,422 ' 1,565,764 2,466,112 646,134 11,233,428 441,867,005 470,067 1,275,576 973,931 768,350 12,800,729 3,035,362 347)717 242,427 347,502 84,674 - 11,124,096 31,772,704 498,379 409,126 869,665 592,738 2,778,560 3,055 '2661i,„38,818 23,070 455,245 3,977,922 9,646,846 55,662,991 , 81,644,369 9,149,950 13,343,358 137,643,865 93,793,365 ,;,;15,519,744 \,33,981,321 1,785,121 2,358,369 730,808 18,379,602 463,992,663 Accumulated amortization Balance, beginning of year Add Amortization Less Accumulated amortization on disposals Balance, end of year Net book value of tangible capital 42,337,115 5,143,393 6,931,337 2,095,387 658,435 940,521 81,649,995 3,03002 56,123,754 9'152,519 2,119,588 -'- " 350,855 14,104,952 1,052,167 1,252,263 282,879 933,755 200,817 427,924 38,075 218,030,374 10,800,559 397,886 821,391 � 592,738 2,762,586 �` 3,055 268 38,818 23,070 455,245 5,095,057 44,034,616 4,980,437=' ..; 7,279,120 81,922/611 58,240,287 9,503,106 14,999,889 - 1,229,914 1,224,942 320,954 223,735,876 assets 55,662,991 37,609,753 4,169,513 6,06038 55,721',254 35,553,078 6,016,638 18,981,432 555,207 1,133,427 409,854 18,379,602 240,256,987 Page 19 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 10. Tangible capital assets (continued) Machinery Infrastructure and Storm Land Buildings equipment Vehicles Roads sewers Sidewalks Information Library Fumiture Assets technology collection and under Parks hardware materials fixtures construction 2016 Cost Balance, beginning of year 55,672,263 78,333,857 8,497,113 11,278,173 124,662,143 Add Additions during the year 73,037 3,690,764 683,111 3,001,372 3,266,409 2,264,649 Less Disposals/transfers during the year 53,997 1,246,702 134,540 1,111799 306,856 33,085,186 1,446,463 2,538,389 598,173 7,170,032 426,691,724 636h658 16;014\ 49,422 119,301 418,643 _ 47,961 6,612,471 21,134,606 490,920 2,549,075 5,959,325 Balance, end of year 55,691,303 80,777,919. 9,045,684 13,167,746 127,621,696 90,761;p56?' ,15,217,73$ 33,672,422 1,565,764 2,466,112 646,134 11,233,428 441,867,005 Accumulated amortization Balance, beginning of year Add Amortization Less Accumulated amortization on disposals 41,401,394 4,665,193 2,028,126 610,959 7,105,511 79,340,650. 2,596;6 9 37, 625 54,0 1057 8;783,732 13,256,658 2,082,6 348,662 911,306 1092,405 132,76;9„+` 1111,799 '28,9266 7,606 35,281 881,303 1,296,189 249,577 - 211,021,264 170,864 446,994 490,920 33,302 10,169,146 3,160,036 Balance, end of year - 42,337,115 5,143;3630., .,. 6,931,337 B1,649195 56,123,754 9,124,788 14,132,683 1,052,167 1,252,263 282,879 - 218,030,374 Net book value of tangible capital assets 55,691,303 38,440,804 3,902,291 6s;23614,09 45,971,701 34,637,304 6,092,951 19,539,739 513,597 1,213,849 363,255 11,233,428 223,836,631 Page 20 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 11. Accumulated surplus The City's accumulated surplus is comprised of the following: 2017 2016 Capital fund Operating fund Equity in Veridian Corporation Tangible capital assets Post -employment benefits liability Internal loans Net long-term liabilities Note receivable soccer facility WSIB benefit liabilities Reserves set aside for special purposes by Council Working capital Self insurance Replacement of capital equipment Contingencies Rate stabilization City's share for deN,elopment charge Continuing studies Vehicle replacement Easement settlement Eastern, branch Land purchase Seaton development'revie Financial systems Senior centre Accessibility initiatives Winter control Sustainability initiatives' Duffin Heights Facilities Accelerated infrastructure program Fence Minor buildings replacement Financial Impact Agreement Reserve funds set aside for special purpose by Council Recreation programs and facilities Acquisition of tangible capital assets WSIB Animal shelter Men's slow pitch Operations Centre Roads & bridges Stormwater management Ontario Community Infrastructure Fund Seaton infrastructure 25,169,415 125,237 81, 505,144 240, 256, 987 (5,430,656) (3,595,241) (31,412,982) 3,796,946 (1,862,876) 400,000 869,293 804,790 1,632,591 16, 823, 997 6,884,793 448,190 1,426,438 390 99,403 1,641,805 1,068,647 450,000 31,944 700,000 51,376 3,660,177 258,645 519,500 150,000 100,000 210,745 19, 827,450 125,234 79,419,406 223,836,631 (4,780, 500) (3,482,113) (21,455,816) 4,055,276 (1,806,100) 400,000 869,293 1,321,737 1,616,554 15, 053,798 4;018,582 362,088 1,247,455 390 67,458 99,403 1,741,987 861,638 375,000 31,944 700,000 43,585 3,889,593 203,345 557,000 174,873 172,615 293,371 289,583 3,209,349 3,001,701 417,706 369,306 152,227 150,262 25,773,590 6,771,136 2,417,954 2,039,410 1,354,597 559,190 55,761 - 54,493 381,688,619 342,553,521 Page 21 52 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated fmancial statements December 31, 2017 12. Pension agreement The City makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS), which is a multi-employer plan, on behalf of the members of its staff. The plan is a defined benefit plan which specifies the amount of the retirement benefit to be received by the employees based on the length of service and rates of pay. OMERS provide pension services to over 482,000 active and retired members and about 1,000 employers. Each year an independent actuary determines the funding status of OMERS Primary Pension (the "Plan") by comparing the actuarial value of the invested assets to the estimated present value of all pension benefits that members have earned to -date. The most recent actuarial valuation of the Plan was conducted as at December 31, 2017. The results of this valuation disclosed total actuarial liabilities as at that date of $94,431 million in respect of benefits accrued for service with actuarial assets at that date of $89,028 million indicating an actuarial deficit of $5,403 million. Because OMERS is a multi-employer plan, any pension plan surpluses or deficits are a joint responsibility of Ontario municipal organizations and their employers. As a result, the City does riot recognize any share of the OMERS pension surplus or deficit. f �` Contributions made by the City to OMERS on account of current. service for 2017 were $3,834,325 (2016 $3,725,946).:4, 13. Trust Funds Trust funds administered by the City amounting two $361,263 (2016 $355,149) have not been included in the Consolidated Statement of Financial Position no }lave their operations been included in the Consolidated Statement of Operations.�' 14. Related party transactions Veridian Corporation The City of Pickering is nncipaI shareholder in Veridian Corporation (Note 4). The City receives electricity and servicesorn Verdian Corporation and its subsidiary. 2017 2016 Transactions Revenues Interest on promissory notes 1,229,138 1,229,138 Property taxes levied 49,993 44,749 Expenses Electrical energy and services 2,153,292 2,723,275 Balances Accounts payable and accrued liabilities 468,782 582,917 Promissory notes receivable 25,069,000 25,069,000 15. Guarantees In the normal course of business, the City enters into agreements which contain guarantees. The City's primary guarantees are as follows: c) The City has provided indemnities under lease agreements for the use of various facilities or land. Under the terms of these agreements the City agrees to indemnify the counterparties for various items including, but not limited to, all liabilities, loss, suits, and damages arising during, on or after the term of the agreement. The maximum amount of any potential future payment cannot be reasonably estimated. Page 22 53 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 15. Guarantees (continued) (ii) The City indemnifies all employees and elected officials including Library employees and board members for various items including, but not limited to, all costs to settle suits or actions due to association with the City, subject to certain restrictions. The City has purchased liability insurance to mitigate the cost of any potential future suits or actions. The term of the indemnification is not explicitly defined, but is limited to the period over which the indemnified party served as an employee or elected official of the City. The maximum amount of any potential future payment cannot be reasonably estimated. (iii) The City has entered into agreements that may include indemnities in favour of third parties, such as purchase and sale agreements, confidentiality agreements, engagement letters with advisors and consultants, outsourcing agreements, leasing contracts, information technology agreements and service agreements. These indemnification agreements may require the City to compensate counterparties for losses incurred by the counterparties as a result of breaches in representation and regulations or as a result of litigation claims or statutolysanptions that may be suffered by the counterparty as a consequence of the transaction. Thaterms otthese indemnities are not explicitly defined and the maximum amount of any potential eimburssement cannot be reasonably estimated. The nature of these indemnification agreements prevents the City from making`a reasonable estimate of the maximumexposure due to the difficulties in assessing the amount of Inability which stems from the unpredictability of future events and the unlimited coverage offered to counterparties. Historically, the City has not made any significant payments under s,.,ich or similar indemnification agreements and therefore no amount has been accrued in the balance sheet with respect to these agreements. 16. Contingent liabilities Litigation The City has been named as a defendant in certain legal -actions in which damages have been sought. The outcome of these actions is not determinable as at the date of reporting and accordingly, no provision has been majJe in these consolidated financial statements for any liabilities which may result. 17. Contractual arrangement The City entered into a provisional license agreement with the Pickering Soccer Club (PSC) for the PSC to occupy and operate the Pickering1ndoor Soccer Facility (the Facility). The term of the agreement is 15 years from November 5, 2014 td November 4, 2029. Under the terms of the agreement, the PSC will repay 52.25% of the City's total cost of purchasing the land, constructing the Facility and the related improvements. In 2015, the City recorded a receivable from PSC in the amount of $4,550,000 based on preliminary project cost figures, with a 15 year repayment term at a variable interest rate ranging from 1.2% to 3.8%. This amount will be adjusted for the total project construction costs, once the agreement is finalized. The City has received all of the required payments to date based on the preliminary figures. PSC has commenced its soccer program operations and is operating the Facility at its own expense including all repairs and maintenance. Once a final form of agreement is executed the total amount of the PSC's obligation will be re -calculated, as agreed, to reflect any adjustments to the total project construction costs. Page 23 54 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 18. Budget figures The 2017 Budget adopted by Council on February 27, 2017 was not prepared on a basis consistent with that used to report actual results. The budget was prepared on a modified accrual basis while Public Sector Accounting Standards require a full accrual basis of accounting. The budget figures treated all tangible capital asset acquisitions as expenditures and did not include amortization expense on tangible capital assets or post -employment benefits expenses on a full accrual basis. As a result, the budget figures presented in the Consolidated Statements of Operations and Change in Net Financial Assets represent the budget adopted by Council on February 27, 2017 with adjustments as follows: 2017 2017 Post - Council Non TCA employment Budget approved expenditures benefits/ presented in budget from capital am ortization statements $ Revenue , Taxation 66,463,79' ;i 66,463,790 Capital 21,492,33i:=�`.,., 21,492,334 Other 15,785,505 15,785,505 103,741,629' - 103,741,629 Expenditures General government -8-6,3 2 270,500 606,659 17,963,501 Protection to persons and property X24,066,.12,.3 40,000 828,118 24,934,241 Transportation services � 9,55184 - 3,721,918 13,277,102 Environmental services �} 1,600,051 2,122,342 3,722,393 Social and family services 816,363 '„ ' - - 816,363 Recreational and cultural services 23,729,013 239,000 3,198,138 27,166,151 Planning and development , 3,507,909 902 3,508,811 44',",'80,360,985 549,500 10,478,077 91,388,562 Annual surplus (deft t) 23,380,644 (549,500) (10,478,077) 12,353,067 Capital expenditures `w (45,144,080) 549,500 (44,594,580) Transfers from reserve and, v reserve funds `* ? 17,502,408 Dividend fromVeridian Corporation 1,927,000 Principal repayment of debt (4,124,472) Principal repayment of PSC note 212,000 Debt proceeds 6,121,500 Prior year operating fund surplus (125,000) 19. Segmented information The City of Pickering is a diversified municipal government that provides a wide range of services to its residents. Distinguishable functional segments have been separately disclosed in the segmented information. The nature of the segments and the activities they encompass are as follows: General government This item relates to revenues and expenses of the City itself and cannot be directly attributed to a specific segment. Protection to persons and property Protection includes fire services, animal control, bylaw services, building inspection and enforcement of the building code to ensure the safety and protection of all citizens and their property. Page 24 55 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 19. Segmented information (continued) Public works services Public works includes construction and maintenance of the City's roadways, including snow removal, sidewalk repairs, street lighting and maintenance of the storm water system. Social and family services Social services for assistance or services for seniors. Recreation and culture services Recreation and cultural services include recreation programs, maintenance and rental of facilities and parks, operation of the City's museum and library services. Planning and development Planning and development provides a number of services including_,rnunicipal planning and review of all property development plans: Segmented information has been provided in the following pages. 56 Page 25 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 19. Segmented information (continued) 2017 Protection Social and to persons Public works Recreational Planning and family General and property services and cultural development services government Consolidated Revenue Grants 9,877 5,489,553 ;83,0°45 ° - 159,605 114,264 6,356,344 User charges 3,848,727 45,432 5,655,740 711,842 54,457 765,965 11,082,163 Tax related revenues - -`� ` �'- "`�- - 69,270,028 69,270,028 Developer revenue 199,275 741,431424,006 17,700 86,468 1,468,880 Contributed tangible capital assets 4,564,443''450x020 `` 5,014,463 Equity share of ). Veridian Corporation4,179,608 4,179,608 Gain (loss) on disposal of `r tangible capital assets (19,810) 32,435 31,646 - 22,883,018 22,927,289 Other revenues 1,205,633, . 1,220,210 597,655 54,598 - 2,495,839 5,573,935 5,243,702 : „1b2,093,504, 7,742,112 784,140 214,062 99,795,190 125,872,710 Expenses' Salaries and wages 20,07,847 7 4,71,298 15,744,394' 2,220,477 , 349,285 9,692,750 52,853,051 Materials and supplies 2,194303 `3,606,212 6,481,518 214,166 149,187 4,817,022 17,462,408 Contracted services 808,517 , ,.k:.. 1,273,691 731,558 136,700 90,440 990,566 4,031,472 Amortization . 731,859 ;: ' 6,042,866 3,480,211 2,065 - 543,558 10,800,559 Other 170,001 226,389 ' 752,499 9,845 176,796 254,592 1,590,122 23,979,527 15,920,456 27,190,180 2,583,253 765,708 16,298,488 86,737,612 Annual (deficit) surplus (18,735,825) (3,826,952) (19,448,068) (1,799,113) (551,646) 83,496,702 39,135,098 Page 26 DRAFT AS AT 05/30/2018 The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2017 19. Segmented information (continued) 2016 Protection to persons and property Public works Recreational services and cultural Planning and deelopment Social and family . General services government Consolidated $ $ $ Revenue Grants 8,332 1,192,283 User charges 3,765,491 56,634 Tax related revenues - Deeloper reenue 86,304 1,287,948 Contributed tangible capital assets - 3,480,656 Equity share of Veridian Corporation Other revenues 1,347,377 444115 5,207,504 6,460';636 $ A. - 170,341 219,989 3,218,352 704,719 36,699 754989 10,825,327 - 66,915,373 66,915,373 - 100,000 2,099,895 - - - 3,480,656 - - 4,252,377 4,252,377 53,902 - 2,823,058 4,863,538 758,621 207,040 75,065,786 95,655,518 196,b86 7,955,"931 Expenses Salaries and wages 19,295,1'9, 4V24 24 15,054,280 2,303,012 315,925 8,907,197 50,607,229 Materials and supplies 2,21`8,542 X3,671 2'6, 6,538,346 165,930 207,444 4,824,890 17,626,414 Contracted services 551,701,591,869 292,939 909,674 202,067 102,551 1,205,822 4,264,754 Amortization 717,316X 5591,869 3,374,699 1,770 - - 483,492 10,169,146 Loss (gain) on disposal of . tangible capital assets (148;400) 19,998 216,729 - - (4,213) 214,114 Other 155;647 186,880 695,991 9,945 167,451 216,934 1,432,848 22,919,997 15,494,572 26,789,719 2,682,724 793,371 15,634,122 84,314,505 Annual •(deficit) surplus (17,712,493) (9,033,936) (18,833,788) (1,924,103) (586,331) 59,431,664 11;341,013 Page 27 Financial statements :of City of Pickering Public. Library Board December 31, 2017 59 City of Pickering Public Library Board December 31, 2017 Table of contents Independent Auditor's Report 1-2 Statement of financial position 3 Statement of operations 4 Statement of change in net debt 5 Statement of cash flows 6 Notes to the financial statements 7-11 60 Deloitte LLP 400 Applewood Crescent Suite 500 Vaughan ON L4K 0C3 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca Independent Auditor's Report To the Members of The City of Pickering Public Library Board, Members of Council, Inhabitants and Ratepayers of the City of Pickering We have audited the accompanying financial statements of the City of Pickering Public Library Board, which comprise the statement of financial position as at December 31, 2017, and the statement of operations, change in net debt and cash flows for the year'then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Member of Deloitte Touche Tohmatsu Limited 61 Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the City of Pickering Public Library Board as at December 31, 2017 and the results of its operations, changes in its net debt and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Chartered Professional Accountants Licensed Public Accountants June 18, 2018 62 Page 2 City of Pickering Public Library Board Statement of financial position as at December 31, 2017 2017 2016 Financial assets Cash Accounts receivable Due from the Government of Canada Due from City of Pickering 1,225 2,225 1,333 371 14,927 15,404 162,706. 109,079 180,191 127,079 Liabilities Accounts payable and accrued liabilities Due to City of Pickering Post -employment benefits liability (Note 2) 202,851 14,793 A-- 452,568 670,212 207,274 382,100 589,374 Net debt Non-financial assets Tangible capital assets (Note 4) Prepaid expense Accumulated surplus (Note 5) 90,02A) (462,295) 1,494,740 1,527,727 37,453 80,195 1,532,193 1,607,922 1,042,172 1,145,627 The accompanying notes to the financial statements are an integral part of this financial statement. Page 3 63 City of Pickering Public Library Board Statement of operations year ended December 31, 2017 2017 2016 Budget (Note 6) $ $ $ Revenue City of Pickering grants 5,855,893 5,781,879 5,617,847 Federal grants 6,881 Province of Ontario grants 213,083 210,280 234,827 Fines and other receipts 172,500 152,398 178,658 6,241,476 6,144,557 6,038,213 Expenses Operating Salaries Salaries and wages Fringe benefits 3;488,68' ,006;745 4,495,429 3,483,038 3,437,699 97.0,148 950,275 4,44;186 4,387,974 Material, supplies and utilities Books Utilities Other supplies Services Repairs and maintenance 296,421 394,908 280,030 Insurance 27,918 25,918 30,300 Travel 4,250 7,308 5,394 Consulting and professional.. 24,195 41,951 64,821 Advertising 23,500 20,782 25,088. Conference 14,000 15,594 11,360 Postage 2,800 3,078 3,231 Telephone 75,466 60,431 64,977 Seminars and education 22,300 32,187 34,899 Software/hardware maintenance 130,701 123,405 104,243 Vehicle repairs and maintenance , 3,943 3,527 3,326 Minor capital purchases 62,000 79,757 121,538 Miscellaneous 21,530 21,950 22,342 709,024 830,796 771,549 205000 281,623 53,100 539;'723 208,582 190,654 227,402 241,830 54,963 74,174 490,947 506,658 Amortization of tangible capital assets 482,290 473,083 485,579 6,226,466 6,248,012 6,151,760 Annual surplus (deficit) 15,010 (103,455) (113,547) Accumulated surplus, beginning of year 1,145,627 1,145,627 1,259,174 Accumulated surplus, end of year 1,160,637 1,042,172 1,145,627 The accompanying notes to the financial statements are an integral part of this financial statement . 64 Page 4 City of Pickering Public Library Board Statement of change in net debt year ended December 31, 2017 2017 2016 Budget (Note 6) Annual surplus (deficit) 15,010 $ $ (103,455) (113,547) Acquisition of tangible capital assets Amortization of tangible capital assets Change in prepaid expense Change in net debt Net debt, beginning of year Net debt, end of year (563,000) 482,290 (80,710) (65,700) (462,295) (527,995) (440,096) (432,332) 473,083 485,579 32,987 53,247 42,742 (3,141) (27,726) (63,441) (462,295) (398,854) (490,021) (462,295) The accompanying notes to the financial statements are an integral part of this financial statement. Page 5 65 City of Pickering Public Library Board Statement of cash flows year ended December 31, 2017 2017 2016 Operating transactions Annual deficit Non-cash items Amortization of tangible capital assets (103,455) (113,547) 473,083 485,579 369,628 372,032 Change in non-cash operating items (Increase) decrease in accounts receivable (962) 114,189 Decrease (increase) in due from Government of Canada 477 (7,473) Increase in due from City of Pickering (53,627) (193,375) (Decrease) increase in accounts payable and accrued liabilities (4,423) 89,775 Increase in deferred revenue 14,793 - Increase in post -employment benefits liability f; 70,468 60,300 Decrease (increase) in prepaid expense 42,742 (3,141) 69,468 60,275 439,096 432,307 Capital transactions Net acquisition of tangible capital assets (440,096) (432,332) Net change in cash (1,000) (25) Cash, beginning of year ` , 2,225 2,250 Cash, end of year.F : 1,225 2,225 TThe accompanying notes to the financial statements are an integral part of this financial statement. 66 Page 6 City of Pickering Public Library Board Notes to the financial statements December 31, 2017 1. Significant accounting policies The financial statements of the City of Pickering Public Library Board (the "Library Board") are the representations of management prepared in accordance with Canadian public sector accounting standards established by the Public Sector Accounting Board ("PSAB") of Chartered Professional Accountants of Canada. Significant accounting policies adopted by the Library Board are as follows: Basis of accounting a) Accrual basis of accounting Revenues and expenses are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenues as they are earned and measurable; expenses are recognized, as they are incurred and measurable as a result of the receipt of goods and services and the creation of a legal obligation to pay. b) Non-financial assets (i) Tangible capital assets Tangible capital assets are recorded at cost less accumulated athortization..Cost includes all amounts that are directly attributable to acquisition development orbetterment of the asset. The cost of the tangible capital asset is amortized on a'straight-line basis over the estimated useful life as follows: Machinery and equipment Information technology hardware Library collection materials Furniture and fixtures to, 25 yea—rs 4 ifOi 8, years pie "7years ;fo 50 years One-half of the annual amortization is charged in the year of acquisition and in the year of disposal. Other majorrassets including these Fina cial statements. e Libra (ii) Contribution/donation of tan ible capital assets Tangible capital assreceived as contributions or donations are recorded at their fair value at the date of receiets pt, and that fair value is also recorded as revenue. buildings are owned by the City and are not reflected in NO Intangible assets Intangible assets are not recognized as assets in the financial statements. c) Post -employment benefits The present value of the cost of providing employees with future benefits programs is recognized as employees earn these entitlements through service. Any actuarial gains or losses are amortized on a straight-line basis over the average remaining service period (ARSP) of employees. The actuary estimated the ARSP to be 13 years. d) Government transfers Government transfers are recognized as revenue by the Library Board in the period in which the transfer is authorized and any eligibility criteria are met, unless they are restricted through stipulations that require specific actions to be carried out in order to keep the transfer. For such transfers, revenue is recognized as the stipulation has been met. Page 7 67 City of Pickering Public Library Board Notes to the financial statements December 31, 2017 1. Significant accounting policies (continued) Basis of accounting (continued) e) Use of estimates The preparation of financial statements in conformity with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amount of assets, liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. Balances which require significant estimates include tangible capital assets, which are based on estimated useful lives, and post -employment benefits. 2. Post -employment benefits liability The Library Board makes available to qualifying employees who retire before the age of 65, the opportunity to continue their coverage for benefits such as posttemployment extended healthcare benefits. Coverage ceases at the age of 65. The Library Board alsoprovides full time and permanent part-time employees a sick time entitlement and any unqed entitlement is accumulated year to year. This accumulated entitlement is not vested and therefoe is forfeited at the timeof retirement or termination. The post -employment benefits obligation atDecember 31, 2017 and the changes in the accrued benefit obligation for the 2017 fiscal year was determined by actuarial valuation prepared as at December 31, 2017. Information about the Library Board's post -employment benefits liability is as follows: 2017 2016 Post -employment benefits liability, b yenning of year Current service costs Amortization of actuarial losses` Interest expense Benefits paid during the year Post -employment benefits liability Accrued post -employment benefits obligation Unamortized actuarial gain (loss) Post -employment benefits liability 382,100 321,800 44,147 42,700 18,900 18,900 19,458 18,600 (12,037) (19,900) 452,568 382,100 2017 2016 $ $. 351,533 539,900 101,035 (157,800) 452,568 382,100 The main actuarial assumptions employed in the actuarial valuation are as follows: a) Discount rate The present value as at December 31, 2017 of the future benefits was determined using a discount rate of 3.75% (2016 - 3.5%). b) Dental cost The dental cost trend rate was 3.75% (2016 - 3.75%) per annum. Page 8 68 City of Pickering Public Library Board Notes to the financial statements December 31, 2017 2. Post -employment benefits liability (continued) c) Health costs Health costs were assumed to increase at 6.75% (2016 - 6.50%) and decrease by 0.33% (2016 - 0.25%) increments per year to an ultimate rate of 3.75% per year in 2027 and thereafter. 3. Pension agreement The Library Board makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS), which is a multi-employer plan, on behalf of eligible members of its staff. The Plan is a defined benefit plan that specifies the amount of the retirement benefit to be received by the employees based on the length of service and rates of pay. OMERS provide pension services to over 482,000 active and retired members and about 1,000 employers. Each year an independent actuary determines the funding status of OMERS Primary Pension ("the Plan") by comparing the actuarial value of the iiiVeste4dAssets to the estimated present value of all pension benefits that members have earned 1o=date. The -most recent actuarial valuation of the Plan was conducted as at December 31, 2017. Thesults of this evaluation disclosed total actuarial liabilities as at that date of $94,431 million in respect ofibene if' s accrued.for service with actuarial assets at that date of $89,028 million indicating an actuarial deficit of $5,403 m lilon Because OMERS is a multi-employer plan, any pension plan surpluses or deficits area joint responsibility of Ontario municipal organizations and their employers. As a result, the Library Board'does not recognize any share of the OMERS pension surplus or deficit. Contributions in the amount of $ 278,157 (2016 $278`674) were pard to OMERS on behalf of its members during the year. Tangible capital assets (TCA) < Machinery nformation Intl technology quipmentN„a. hardware Cost Balance, beginning of year 235681' 204,157 2,466,112 329,648 - 3,023,598 Additions during the year 51,193 347,502 21,111 20,290 440,096 Disposals/transfers to TCA during the year - 455,245 - 455,245 Balance, end of year 23,681 255,350 2,358,369 350,759 20,290 3,008,449 Library Furniture Assets collection and under materials fixtures construction . 2017 Accumulated amortization Balance, beginning of year 8,178 98,883 1,252,263 136,547 - 1,495,871 Amortization 2,368 31,095 427,924 11,696 - 473,083 Accumulated amortization on disposals - - 455,245 - - 455,245 Balance, end of year 10,546 129,978 1,224,942 148,243 - 1,513,709 Net book value 13,135 125,372 1,133,427 202,516 20,290 1,494,740 Page 9 69 City of Pickering Public Library Board Notes to the fmancial statements December 31, 2017 4. Tangible capital assets (TCA) (continued) Machinery Information Library Furniture and technology collection and equipment hardware materials fixtures 2016 Cost Balance beginning of year 9,992 204,157 2,538,389 329,648 3,082,186 Additions during the year 13,689 - 418,643 - 432,332 Disposals/transfers to TCA during the year - - 490,920 - 490,920 Balance, end of year 23,681 204,157 2,466,112 329,648 3,023,598 Accumulated amortization Balance, beginning of year 6,494 72,622 1,290,189 125,907 1,501,212 Amortization 1,684 26,261E 446994 10,640 485,579 Accumulated amortization on disposals Balance, end of year Net book value 490,920 ,-� 490,920 8,178 98,883- ;` 1,252,263' -4'136,547 1,495,871 15,503 105,2741,213,849 =193,101 1,527,727 5. Accumulated surplus Accumulated surplus consists of the following: Invested in capital assets; Post -employment be.4 efi s liability 70 2017 2016 1,494,740 1,527,727 (452,568) (382,100) 1,042,172 1,145,627 Page 10 City of Pickering Public Library Board Notes to the financial statements December 31, 2017 6. Budget figures The 2017 budget was not prepared on a basis consistent with that used to report actual results. The budget was prepared on a modified accrual basis while public sector accounting standards require a full accrual basis of accounting. The budget figures treated all tangible capital asset (TCA) acquisitions as expenditures and did not include amortization expense on tangible capital assets or post -employment benefits expenses on a full accrual basis. The following provides a reconciliation from the approved budget to the budget numbers presented in the financial statements. 2017 Council approved budget Post -employment benefits / Amortization/ City Assets/ Capital budget adjustment 2017 budget presented in statements Revenue City of Pickering Federal and provincial grants Fines and other receipts 5,975,893` 213,0 1°72,500 "6,461;476 11°,000) (120, 000) 5,855,893 213,083 172,500 6,241,476 Expenditures Salaries and benefits Material, supplies and utilites Services Amortization Annual surplus (defici Capital expenditures/ additions 429 729 539,723 709,024 5,678,476 683,000 (683, 000) 65,700 482,290 547,990 (667,990) 120,000 4,495, 429 539,723 709,024 482,290 6,226,466 15,010 (563, 000) Page 11 71 Financial statements of City of Pickering Trust Funds December 31, 2017 72 The Corporation of the City of Pickering Trust Funds December 31, 2017 Table of contents Independent Auditor's Report 1-2 Statement of financial activities and fund balances 3 Statement of financial position 4 Notes to the financial statements ... 5 73 Deloitte LLP • 400 Applewood Crescent Suite 500 Vaughan ON L4K 0C3 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca Independent Auditor's Report To the Members of Council, Inhabitants and Ratepayers of The Corporation of the City of Pickering We have audited the accompanying financial statements bf The Corporation of the City of Pickering Trust Funds, which comprise the statement of financial position as at December' 31, 2017, the statement of financial activities and fund balance for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the "preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Member of Deloitte Touche Tohmatsu Limited 74 Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of The Corporation of the City of Pickering Trust Funds as at December 31, 2017 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Chartered Professional Accountants Licensed Public Accountants June 18, 2018 Page 2 75 The Corporation of the City of Pickering Trust Funds Statement of financial activities and fund balances year. ended December 31, 2017 2017 2016 Revenue Interest Fund balance, beginning of year Fund balance, end of year 6,114 7,134 355,149 348,015 361,263 355,149 The accompanying notes to the financial statements are an integral part of this financial statement. 76 Page 3 The Corporation of the City of Pickering Trust Funds Statement of financial position as at December 31, 2017 2017 2016 Assets Cash and investments 356,700 335,633 Interest receivable 4,563 19,516 361,263 355,149 Trust Fund position 361,263 355,149 The accompanying notes to the financial statements are an integral part of this financial statement. Page 4 77 The Corporation of the City of Pickering Trust Funds Notes to the financial statements December 31, 2017 1. Significant accounting policies The financial statements of The Corporation of the City of Pickering Trust Funds are the representations of management prepared in accordance with Canadian accounting standards for Not -for -Profit Organizations. Significant accounting policies adopted include: Revenue recognition Interest revenue is recorded as earned. Investments Investments are recorded at amortized cost. The cost of investments plus accrued interest approximates their fair value. 2. Dorothy Card Estate The City of Pickering administers a trust fund for the D , othy Card Estate for the care and upkeep of the destitute elderly. The fund balance is comprised of investments and accumulated interest amounting to $361,263 (2016 - $355,149). Statement of cash flows A statement of cash flows has not been presented as the information is readily determinable from the financial statements presented. • < '' 78 Page 5 CG2 �{ BICKERING Report to Executive Committee Report Number: CS 20-18 Date: June 18, 2018 From: Marisa Carpino Director, Community Services Subject: Pickering Museum Village Strategic Plan - Final Report File: A-1440 Recommendation: 1. That the Pickering Museum Village Strategic Plan (April 2018) be endorsed in principle; 2. That staff be authorized to use the plan as the basis for future corporate decisions, recommendations, and budget submissions; and That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: In late 2016, a steering committee was struck to develop a 5 year strategic plan for the Pickering Museum Village (PMV). The Strategic Planning Steering Committee was comprised of museum staff and volunteers, and co-chaired by the Coordinator, Museum Operations, alongside a member of the PMV Advisory Committee. The purpose of the Pickering Museum Village Strategic Plan is to guide future City decisions regarding Pickering's artifacts, skills and knowledge preservation, partnership development, programming, site optimization, and human resource development (paid and volunteer) at the Pickering Museum Village, over the next 5 years. It will facilitate the City's capacity to better provide, plan, and deliver the museum needs of the community, in the immediate future, and will position the museum for future strength and impact in the community. Following a review of current museum, culture and economic trends, an Environmental Scan report was drafted in March 2017 placing PMV in context with other museums in Ontario. From this report, a draft Strengths, Weaknesses, Opportunities and Threats analysis (SWOT) was created. The Environmental Scan report and SWOT analysis provided the common starting point for the development of an extensive community consultation campaign which included in-person and online surveys, focus groups, and interviews. The data collected from the community consultation campaign were distilled into themes within the Critical Issues Report dated October 2017. This report was used to focus discussion at the PMV Strategic Planning Retreat and ultimately create the Pickering Museum Village Strategic Plan. At this time, City staff seek Council's endorsement of the Pickering Museum Village Strategic Plan (April 2018) in principle. The strategic goals outlined in this plan will be used by staff to guide the planning and implementation of museum services to meet the needs of our community. 79 CS 20-18 June 18, 2018 Subject: Pickering Museum Village Strategic Plan Page 2 Recommendations to incorporate broader community recreation and leisure opportunities in museum expansion and development plans will involve the consultation of applicable residents and stakeholders through focus group sessions and other consultative methods, prior to implementation. Financial Implications: Financial implications will be further evaluated by the Director, Community Services in consultation with the Director, Finance & Treasurer. The implementation for each project will depend on sufficient resources being available toundertake such work. Financing and implementation of recommended projects will be submitted to Council through the budget process for consideration and final approval. Discussion: Pickering Museum Village aims to meet or exceed the Ministry of Tourism, Culture and Sport's Standards for Community Museums in an effort to receive annual funding through their Community Museum Operating Grant program. Standards require that museums within the program have a current strategic or business plan. The City of Pickering's existing Pickering Museum Village 5 yearplan ended in 2015, with 88 percent of the goals and objectives successfully implemented, and was due to be renewed. Accordingly, the new Pickering Museum Village Strategic Plan development process was initiated in-house with the knowledge and support of staff and volunteers in the fall of 2016. The PMV Strategic Plan will guide future City decisions on 5 key areas: preservation of artifacts, skills and knowledge; • partnerships; • programs; • site optimization; and • human resource development (paid and volunteer). An extensive community consultation campaign was implemented from April 2017 to June 2017 (inclusive) to include random in-person surveys captured at the Pickering Town Centre and the Pickering Public Library (Central Branch), online Museum user and non -user surveys, public focus group sessions, staff focus group sessions, and CAO and Council interviews. The community consultation campaign was promoted through eNewsletters, roadside signs, display boards, social media (Facebook and Twitter), museum webpage, media release, and by invitation to specific community groups. Over 100 people participated in the surveys, and approximately 120 people participated in focus group or interview discussions. The ideas brought forward collectively helped to formulate the creation of the Critical Issues Report in October 2017 which identified consistent and recurring themes. The Critical Issues. Report became the focal point for discussion at the Strategic Planning Retreat held in October 2017. A group of 12 participants including the Director, Community Services, key City staff who work in connection with the museum, PMV staff, Pickering Museum Village Advisory Committee Members, and volunteers came together to strategize priorities and goals in response to the key issues/themes identified in the Critical Issues Report. 80 CS 20-18 June 18, 2018 Subject: Pickering Museum Village Strategic Plan Page 3 The PMV Strategic Planning Steering Committee then collected the strategic priorities agreed upon at the retreat, and more deeply shaped goals to support those priorities. Staff gratefully acknowledge the support and participation of all participants, without whose opinions and thoughts this strategic plan would not be possible. With some edits, the draft Pickering Museum Village Strategic Plan was reviewed and endorsed by the Director, Community Services in March 2018, and was presented to, and endorsed by the Pickering Museum Village Advisory Committee in April 2018. This strategic planning process has provided for an opportunity to assess current museum services, amenities, and use, measure community satisfaction, and develop a strategic plan that will assist museum staff to plan for future museum growth, include community, and better preserve skills, knowledge, and artifacts in order to meet the needs of our growing community for the next 5 years. This strategic plan has been developed under the lens of future growth and development in Pickering (residential and business) and recognizes the need to connect with this new and exciting growth, including the new growth of Seaton. Recommendations to overall museum site use and development (which will also impact community partners) will involve the consultation of applicable user groups and members through focus group sessions and other consultative methods, prior to implementation. Clearly, the Pickering Museum Village Strategic Plan (April 2018) will allow the City of Pickering to be proactive and prepared for the current and future needs of this community. Attachments: 1. Pickering Museum Village Strategic Plan (April 2018) 81 CS 20-18 June 18, 2018 Subject: Pickering Museum Village Strategic Plan Page 4 Prepared By: 82 Approved/Endorsed By: Katriryke Marisa Carpino Coordinator, Museum Operations Director, Community Services Tanya Ryce Supervisor, Cultural Services :mc Recommended for the consideration of Pickering Cid Council Tony Prevedel, P.Eng. Chief Administrative Officer ATTACHMENT # _ TO REPORT #C` l 2 cta od DICKERING Pickering Museum Village Advisory Committee, Strategic Planning Steering Committee 4/9/2018 83 84 Pickerin rrliMuseum gage troduction Museums have two responsibilities that are inextricably linked: Collecting/ Preserving, and Communicating. Strategic planning aims to keep those in balance?. Museum Management Collecting & Preserving Communicating A museum organization is said to be "in alignment" when all its parts are working toward common goals. Administration: Management/Council, Finances, External Relations Collections Curatorial: Acquisition, Research, Documentation, Conservation, Collection Management Exhibits, Publications; Interpretation Programs ucati& Communica&Intetion on rpretive Activities, Marketing The Pickering Museum Advisory Committee's Strategic Planning Steering Committee drafted this Strategic Plan after extensive stakeholder consultation. It is a short, succinct document that defines the PMV's vision, mission, and values, and identifies recommended .strategic goals to be accomplished by the end of 2023. Subject to approval, this document will be made accessible to stakeholders and the public. A subsequent Action Plan will be drafted by staff, and will identify by year, museological area, and staff member responsible, the objectives and underlying tasks that will be necessary to reach the recommended strategic goals. The Action Plan will include resource allocations to successfully complete the objectives, and therefore achieve the strategic goals. 1 The. book "The Manual of Strategic Planning for Museums" by Gail Dexter Lord and Kate Markert was used to create this outline. Page 1 Ickering lii�l' I "18420.23)1 Governing Statements Vision Pickering Museum Village will be a community hub where people come together to learn, share stories, and build relationships through progressive, fun, and vibrant experiences. Mission Pickering Museum Village will ignite imaginations through a living history museum that fosters a connection to Pickering by collecting, preserving, and interpreting artifacts and social culture. Values Pickering Museum Village's approach is based on the following values (definition of value is for this document only): • Authentic — The Museum is committed to presenting a venue, programming, and interpretation accurately for the time period depicted. • Inclusive — The Museum is committed to providing diverse, meaningful accessibility to all, whether through language, physical ability, age, etc. • Respectful — The Museum is committed to being purposeful and considerate in the representations of and interactions with, artifacts, the public, volunteers and staff. • Unique — The Museum is committed to creating experiences and learning opportunities that are unique. Page 2 86 111 Strate• is Plan Overview The following strategic action priorities (SAP) have been identified for 2018-2023: SAP 1: Preserve artifacts, knowledge, and skills. SAP 2: Build strategic relationships and awareness to raise PMV profile. SAP 3: Deliver accurate and high-quality programming. SAP 4: Site Optimization. SAP 5: Develop human resources* * Human resources includes staff, volunteers, and outside service providers Page 3 MPickeg useum The following provides a summary of Pickering Museum Village's strategic framework: .111111111111111 Vision: PMV will be a community hub where people come together to learn, share stories, and build relationships through progressive, fun, and vibrant experiences. Preserve artifacts; knowledge & skills Build strategic partnerships and raise awareness of PMV profile Deliver accu rate & high quality programming Site optimization Mission: PMV will ignite imaginations through a living history museum that fosters a connection to Pickering by collecting, preserving and interpreting artifacts and social culture. Develop human resources Authentic [ Inclusive 1 Respectful 1 Unique Page 4 88 III ISI II trig age Il 111 rl Plan 1:7,1?pga), Strate® is Action Priorities & Ke initiatives`Surnrna Strategic Action Priority 1'— Preserve artifacts, knowledge, and skills Definition of Success at 2023 • Collecting Plan developed and implemented. • Establish sustainable funding model. • All artifacts appropriately housed on-site, with space for collection growth. • Disaster Preparedness Plan drafted and implemented. Enablers • Accurate and complete artifact inventory. •• Gap analysis identifying collection development priorities. • Secure funding to acquire artifacts, and develop skills and knowledge. • Artifact storage spaces with appropriate environmental controls. • Accessibility as a cornerstone (e.g. remove physical barriers for persons with disabilities, improve staff resources to allow better public access to the collection, increase open hours, on-line artifact database, etc.). • City Heritage Preservation Policy developed and implemented (including Heritage Procedure for Reporting and Protecting Archaeological Discovery). • City Heritage Asset Promotion Plan developed and implemented. • Inventory of HR skills, gap analysis conducted, and training plan established. • Staff time and resources allocated for collections records management (e.g. paid intern, temporary position, Collections Assistant, etc.). • Heritage Inventory completed (including gap analysis for built cultural heritage acquisition). • Grow partnership with Heritage Pickering, Pickering Township Historical Society, Local History Room (Pickering Public Library) and establish clear collecting and/or acquisition goals between organizations. Page 5 MPicke useum Strategic Action Priority 2- Build awareness of PMV profile strategic partnerships and raise` Definition of Success at 2023 • Identify and engage funding partners. • Marketing, Sponsorship & Promotions Strategy/Communications Plan developed and implemented. • Programs and services are enhanced through partnerships (e.g. outsourcing gift shop, food service, program development in collaboration with community partners etc.). • Signage/way-finding upgraded. Enablers • Dedicated staff resources to develop and implement Sponsorship Plan and Asset Sales. • Develop sponsorship packages which identify value for the corporate partner and PMV. • Partnerships Steering Committee (inventory of all sectors that connect with the Museum, used to understand breadth of potential partnerships and brainstorm partnering initiatives; leverage new building; develop building capacity potential for • groups and staffing capacity to support). • Review how staff capture images and moving footage to convey what we do for potential partners and the public. • Establish partner priorities and needs. Page 6 90 Pickerin Museum Alaviitage PMV Strategic. 2018- Strategic O1 - Strategic Action Priority 3: Deliver accurate and high-quality programmin< Definition of Success at 2023 • Space -use plan and year-round programming developed and 70% implemented for new Heritage & Community Centre. • A Comprehensive Interpretive Plan is developed, implemented, and reviewed annually. • "Progressive" interpretive techniques are cornerstones to program development (e.g. technology, hands-on, unique interpretive variety, etc.). • Implement a sustainable revenue model for program and service delivery. • Ensure inclusivity is integrated into programming. • Newcomers and residents are engaged and involved. • Programming is evaluated according to clearly defined success measurements. Enablers • Increased/dedicated staff resources to support maintenance, reception, volunteer coordination, heritage programming, bookings, etc. • Dedicated staff and resources to produce a clear process and timeline for programming/interpretation research, development, implementation, and evaluation. • Program criteria established and followed. • Zero -balance programming budget through public revenues, grants, and/or sponsorship • Public input to assist with development (e.g. Welcome Centre). • Investment of external corporate partners (e.g. service developers to partner). • Steering committee established to help implement/develop programming. • Internal and external corporate partners are identified, and strong working relationships are established. • Master Site Use Plan developed. • Communication Engagement Plan to welcome and inform newcomers. Page 7 F"Ickerng Museotim illage, Strategic Plan (201 -2023) Strategic Action Priority 4 — Site Optimization Definition of Success at 2023 • Comprehensive Site Use Strategy. • Design, construct and open "Heritage & Community Centre" and PMV Site (Phases 1 & 2). • Address parking & site security. • Site way -finding plan developed and implemented. • Site access and connectivity — develop plan and implement (transit and transportation). • Year Round Food Services Strategy developed and implemented. Enablers • Staff resources allocated to capital projects (project management). • Partnership with TRCA to address access issues. • Stakeholder consultations. • Breakdown tasks necessary to prepare for new centre (strategy and time to plan). • Unique and innovative funding strategies (e.g. 1% levy) dedicated to cultural preservation and upgrades. • Staff time and budget resources for signage/way-finding study. • Grand Opening/Ribbon Cutting — Heritage and Community Centre building momentum & celebrating. • Sponsorship/Franchise agreement for food services. Page 8 'i.rl tiseum lage Strategic Action Priority #5 - Develop human resources Definition of Success at 2023 • Organizational chart and job descriptions in place that reflect staffing needs and defines staff roles. • Human Resource Plan developed and implemented in collaboration with appropriate departments (staff, volunteers, committees). • Establish grant writing as integral to staff roles, as applicable. • Functional governance structure (committee/board). • Volunteer Management and Development Plan created and implemented. • . Succession planning. Enablers • Dedicated staff resources for: o Volunteer Plan development o Grant writing o Program research, development and implementation. • Fully develop staffing plan, considering organizational structure, diversification of staff roles, expansion and/or reallocation supported by Council and Senior Management. • Programming models established that pay for staff to deliver programs (internal and external staffing and materials). • Staffing priorities and needs established. • Target grants that move the museum staffing goals forward, rather than making the museum fit the grant. • Investment in staff (training, development, recognition, awards, morale, etc.). II ruliiilllNl�� II I �'I6�`�` 16 Page 9 92 Gly a� DICKERING Report to Executive Committee Report Number: CAO 07-18 Date: June 18, 2018 From: Tony Prevedel Chief Administrative Officer Subject: Marketing Partnerships and Naming Rights - File: S-4000-001 Recommendation: 1. That Council approve the retention of Performance Sponsorship Group to pursue and secure high profile marketing partnership and naming rights opportunities in accordance with the Purchasing Policy, Section 10.03 (c); and 2. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: The Marketing Partnership and Advertising Policy (ADM 150) was approved at the September 21, 2015 City Council meeting. The Policy Objective states: "The Corporation of the City of Pickering welcomes and encourages marketing partnerships and advertising to assist in the provision of City programs, services, events, projects and facilities. This Policy provides guidelines to maximize revenue opportunities while safeguarding the City's vision, mission, values, interests, and public image." In September 2016, the City hired a Coordinator, Marketing Partnerships to develop and implement the Marketing Partnership and Advertising Program. In April 2017, this position was moved to the Office of the CAO to provide it with a broader corporate and business development focus, and the contract was extended to April 30, 2018. Budget approval was given to extend the contract to December 31, 2018, however, the individual in the position declined the offer to extend the contract. In consultation with Community Services and other internal stakeholders, the Office of the CAO investigated the option of retaining a marketing sponsorship agency to refocus and enhance the Marketing Partnership and Advertising Program. Namely, the agency would focus on 'big-ticket' sponsorship and naming rights opportunities in order to maximize revenues for the City. Marketing partnerships and sponsorships is a very niche segment of the marketing industry. There are only a handful of agencies that specialize in this field. As such, three agencies were contacted to discuss Pickering's opportunity. The Office of the CAO and Community Services have selected Performance Sponsorship Group as its preferred marketing agency and is seeking Council's approval to finalize and enter into an agreement for the period of 18 months. 93 CAO 07-18 Subject: Marketing Partnerships and Naming Rights June 18, 2018 Page 2 Financial Implications: The Community Services Department, the originator of the Marketing Partnership and Advertising Policy, had estimated its annual sponsorship revenues to be $50,000 with $10,000 in in-kind contributions. Annual arena advertising revenues were $33,000. Community Services conducted a valuation of City assets and determined that it was significantly underperforming with respect to marketing partnerships, sponsorships and advertising revenues. Of note, the most significant untapped revenue opportunity was naming rights for City facilities and assets such as the Pickering Recreation Complex, Pickering Soccer Centre, 6 arenas, parks and trails, indoor swimming pools, change rooms, meeting rooms, and fitness rooms. These naming rights can generate significant revenues fora municipality. For example, the City of Oshawa is receiving $250,000 a year, over a 10 -year period for the naming rights for the Tribute Centre. Over an 18 -month span, the Coordinator, Marketing Partnerships was unable to achieve the revenue targets. The majority of the negotiated sponsorships were either `in-kind' contributions or were of a lower dollar value. There were no naming rights sold. Performance Sponsorship Group is willing to assume the marketing sponsorship function for the City for a $6,500 monthly retainer and 10 per cent commission on secured sponsorships, advertising sales, and naming rights agreements. The Office of the CAO recommends retaining Performance Sponsorship Group for an 18 -month period. Discussion: In its current form, the Marketing Partnerships and Advertising Program achieved mixed results. Namely, participating sponsors were pleased with the high level of attention to their individual needs and the ability to customize their participation in a City event or program. However, while this approach seemed to be well received by the sponsors, it did not result in a significant increase in sponsorship revenues. While there was an increase in in-kind contributions, many of these did not offset budgeted operating costs. Further, the City of Pickering still has not sold any naming rights for its assets or facilities that represent the highest source of significant revenues. In retrospect, by providing the sponsors with an overly customized approach, it created unrealistic expectations and additional work for staff to meet those expectations. The added strain on staff resources cannot be justified, because sponsorship levels remained static and revenue targets missed. When the Coordinator, Marketing Partnerships role became vacant, it created an opportunity to pause and analyze our efforts to date. After consulting with internal stakeholders including Community Services, the Office of the CAO decided to refocus and enhance the Marketing Partnership and Advertising Program. Instead of dedicating time and resources to pursuing large volumes of small sponsorships and in-kind donations, it is recommended that a marketing sponsorship agency be retained to revamp the program and allocate more time and energy towards pursuing high -yield sponsorships for the City's premier facilities, programs, and events. 94. CAO 07-18 June 18, 2018 Subject: Marketing Partnerships and Naming Rights Page 3 While there are dozens of marketing agencies in the Greater Toronto Area (GTA), there are few with significant marketing partnership, sponsorship and naming rights experience. This number dwindles when isolating the search to sponsorship agencies with municipal expertise. The Office of the CAO reached out to three well known and recommended agencies in the GTA that specialize in this field. One agency later withdrew from consideration. Staff met with the two remaining agencies who were both very strong and experienced in corporate sponsorship. However, staff ultimately favours working with Performance Sponsorship Group (PSG), because it is the foremost authority in municipal sponsorship and naming rights. PSG has worked with over 25 municipal clients across the country including Barrie, Brampton, Burlington, Calgary, Edmonton, Hamilton, Kitchener, Ottawa, Saskatoon, and Winnipeg. It has finalized hundreds of sponsorship and naming rights agreements representing millions of dollars for recreation facilities, arenas, performance art centres, health and wellness facilities, convention centres, and transit facilities. The PSG team consists of five members including a Senior Partner & Project Lead, Senior Consultant (Research), Managing Partner & Project Consultant, Managing Director, and a Graphic Designer. Based on the team's cursory review of the City of Pickering's facilities, programs, services, and other assets, PSG is confident that it can secure at least $1 million dollars in combined sponsorship and/or naming rights commitments. If the City agrees to retain PSG, it will need approximately 18 months to do a comprehensive assessment and valuation, and undertake a thorough approach to market and sell the assets in order to achieve its $1 million dollar target. PSG has broken down the 18 -month project into 6 phases: Phase 1 — Review existing assets/inventory, and create recommended sales strategy Phase 2 - Pricing and positioning of approved opportunities Phase 3 — Packaging approved opportunities (philanthropic, supplier, naming rights, and programming sponsorships) Phase 4 — Prospect list development and direct sales Phase 5 — Securing letters of intent Phase 6 — Activation and sponsorship mentoring As with many marketing agencies, PSG works on a monthly retainer and commission basis. Staff were able to negotiate a monthly retainer fee of $6,500, which is roughly equivalent to the former Coordinator, Marketing Partnerships' monetary compensation. A commission is also standard industry practice which Staff were able to negotiate a rate of 10 per cent payable to PSG for any new sponsorship, advertising sales, or naming rights agreements which they are able to secure. This commission rate was several points lower than what the other marketing agency was seeking. PSG was advised that the agreed, to monthly retainer fee and commission rate were both subject to Council approval. 95 CAO 07-18 June 18, 2018 Subject: Marketing Partnerships and Naming Rights Page 4 Although PSG will be focusing most of its energies on securing high-profile sponsorship and naming rights opportunities, it recognizes the need to continue support of existing sponsors and local businesses. By streamlining processes and working with staff to develop a standardized sponsorship package, PSG will be able to find the right fit for any company's budget. Attachments: Proposal from Performance Sponsorship Group and Team CV's Prepared By: ,oPv`--Zr Mark Guinto Manager, Public Affairs & Corporate Communications TP:mg Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer 96 PSG Performance Sponsorship Group Thursday May 31, 2018 75 First Street, Suite 212, Orangeville, ON Canada L9W 5B6 1 (416) 399-4600 jhaber@performancesponsorship.com 1 www.performancesponsorship.com Mr. Mark Guinto Manager, Business Development and Public Affairs City of Pickering One The Esplanade Pickering, Ontario L1V 6K7 Dear Mark, As requested, the following pages outlines Performance Sponsorship Group's (PSG) approach to assisting in the design, and execution of a Sponsorship, Advertising and Naming Rights program for the City of Pickering. PSG has teamed up with Bernie Colterman, founding principal of the Centre of Excellence for Public Sector Marketing (CEPSM). Attached is a sample list of municipal projects to illustrate our experience with municipalities. With over 50 years of combined experience, we have raised over $30 million for the public and nonprofit sector and are considered two of the most accomplishednaming rights professionals in the Country. As a team, we have conducted valuations and sales for over 1000 sponsorship properties, including hundreds of municipal assets, ranging from skate parks, recreational facilities, performing art centres, annual events and programs. The principals have secured official suppliers, naming rights partners, advertisers and marketing.partners for Cities and Towns across the country. The attached Team CV provides further details on our range of expertise. The City of Pickering has been identified as a destination for the next generation of knowledge-based business and industry. The ideal marketing partner and corporate partner for The City of Pickering is a company who wants to promote 97 their participation and flaunt the destination. It is a company who wants to build their own business while helping to build community. Most local companies understand the value of this relationship. The PSG team will identify and secure successful relationships with such companies for the Town of Pickering. Mark, if you have any questions or require additional clarification, please call. We look forward to hearing from you soon. Regards, Judy Haber Senior Partner Performance Sponsorship Group, Inc. Attachments: Team CV List of Sample Municipal Projects Timeline City of Pickering 98 Page 2 of 5 Proposal for Pricing, Packaging and Selling Sponsorship, Naming Rights, Marketing Partnerships, and Advertising for Programs, Events, and Facilities, City of Pickering Overview The goal of the program is to identify a minimum of $1 Million in sponsorships before December 2019 through naming rights, sponsorships, marketing partnerships and advertising. To achieve this goal, the PSG team will provide a sponsorship, marketing partnership, naming rights and advertising strategy which will outline the order in which assets will be priced, packaged and sold. Timelines PSG team will divide the project into 5 phases: Phase 1— Review existing assets/inventory, and create recommended sales strategy Phase 2 — Pricing and positioning of approved opportunities Phase 3 — Packaging approved opportunities (philanthropic, supplier, naming rights, and programming sponsorships) Phase 4 — Prospect list development and direct sales Phase 5 — Securing letters of intent Phase 6 — Activation and sponsorship mentoring Phase 1— Review Existing Inventory, Recommended Sales Strategy PSG team will review existing opportunities and make recommendations on which assets should be priced, packaged, and sold in the first 18 months of the agreement. This includes site tours, and consultation with staff. Phase 2 - Pricing and Positioning of Approved Opportunities PSG team will price approved assets and establish corresponding sponsor benefits and entitlements. The team will complete a comparative analysis of sponsorship sales in like markets with like assets. The comparison will provide City council and City staff with a rationale for asking prices. • City of Pickering Page 3 of 5 99 Upon completion of Phase 1 and Phase 2, The City of Pickering will be presented with recommended asking price, term, and entitlements for specific assets to be approved by City Council. Assuming the contract is awarded in the beginning of July, presentation of the findings and major sales packages will be ready to be taken to market no later than September 4th, 2018. Phase 3 - Packaging The PSG team will identify a specific sales strategy for each sponsorship and advertising opportunity and develop sales documents for approval by City Council. Four weeks are required for the development of major sales packages. The sales packages will be designed concurrently with Phase 2. Please note the City of Pickering is responsible for the cost of digital design and production of sales packages. Phase 4 - Prospect List Development & Direct Sales PSG will develop a list of 30 prospects for approval by the City of Pickering. This initial list will be updated on an ongoing basis as new prospects are identified. No approach will be made to any prospect without prior approval from the City of Pickering. A range of sponsorship offerings will be sold for both cash and in-kind services. Utilizing the pre -approved prospect list, PSG will schedule sales calls. The sales offering is made on a first come, first serve basis. Sales efforts will begin no later than September 4th,.2018. PSG anticipates a sixteen (16) month sales effort to reach the goal of $1 Million. Phase 5 — Letters of Intent (LOI) PSG will introduce available sponsorship opportunities to a broad range of prospects and secure Letters of Intent (LOI) for a combination of naming rights and secondary sponsorships, exclusive suppliers, advertising and event sponsors. The LOI's will outline the sponsor's intent to purchase the specific sales offering, the fee, and the term in exchange for a broad list of benefits. LOI's are non-binding but they form the basis of the Letters of Agreement. Following the submission of an City of Pickering Page 4 of 5 100 acceptable LOI, the specific sponsorship opportunity is withdrawn from the marketplace to allow the parties to negotiate in good faith. Phase 6— Activation and Sponsorship Mentoring Arguably, closing a sponsorship sale marks the beginning of the process. Sponsors have clearly defined goals and objectives for their sponsorship initiatives. Sponsors expect a return on their sponsorship investment. As such, PSG will appoint a member of the PSG team to work with the sponsors to ensure they remain long term partners with The City of Pickering. Project Costs: $6,500 per month x 18 months plus earned commissions (10%) Commission: PSG will receive a commission of 10% on all cash and pre -approved in- kind contributions secured for all the assets listed in the proposal. Design Expenses: range $5,000 - $8,500 for the 18 -month term City of Pickering Page 5 of 5 101 PSG 10 Performance Sponsorship Group 75 First Street, Suite 212, Orangeville, ON Canada L9W 5B6 1 (416) 399-4600 ihaber@performancesponsorship.com 1 www.performancesponsorship.com Background and Experience List of Sample Municipal Projects by Performance Sponsorship Group Inc. Border Paving Athletic Centre, Spruce Grove, Alberta: Retained to audit a new sport and recreation facility for the Aerial Gymnastics Club. Naming Rights was sold for $350,000. Calgary Health Region, Calgary, Alberta: Developed policy for corporate sponsorship and completed an audit of six (6) Naming Right opportunities at multiple sites. City of Edmonton, Edmonton, Alberta: Conducted two audits/evaluations for the city owned recreation and wellness facilities, namely the Southwest Community Recreation Centre and the St. Francis Xavier Field House. City of Grande Prairie, Grande Prairie, Alberta: Retained to price, package, and renew Secondary Sponsorship for the Eastlink Centre. City of Lacombe, Lacombe, Alberta: - Priced, packaged and sold overall Naming Rights to Gary Moe Auto Group and secondary Naming Rights to Freightliner of Red Deer, Red Deer Bottling Company Ltd., Can Pak Environmental Inc., Border Paving, and Central City Asphalt. City of Martensville, Martensville, SK: Retained to audit, package and sell multiple Naming Rights. opportunities for multi -use recreation facility. Sold Naming. Rights to companies that include Affinity Credit Union, Dairy Queen, MacNeil Motors, North Prairie Developments, Hallmark Realty, Agrium, Loraas Disposal Services, Mocon Construction, as well as others. City of Port Colborne, Port Colborne, Ontario: Retained to audit, package and sell Naming Rights to a new health and wellness centre. Naming Rights was sold to Vale for $1.2 million. City of Vaughan, Vaughan, Ontario: - Retained to value facility assets and programming. Credit Union Sport and Entertainment Centre, (now called SaskTel Centre) Saskatoon, Saskatchewan: Retained to package the Naming Rights opportunity and secure a Naming Sponsor for the former Saskatchewan Place. Naming Rights was sold for a total of $1.6 million. EDGE School/Jim Davidson Sports Complex, Calgary, Alberta: Conducted an audit of Naming Rights and secondary sponsorship opportunities. PSG sold sponsorship packages to companies that included Pepsi, Provident, ATB, Direct Energy, and Chevrolet. PSG secured in excess of $3 million. 102 EPCOR CENTRE for the Performing Arts, Calgary, Alberta: Retained to audit, package and sell Naming Rights to the Calgary Performing Arts Centre. Naming Rights were sold for $4 million plus in-kind savings. Keystone Centre, Brandon, Manitoba: Conducted a Naming Rights audit of the facility and recommended a sales strategy to the Keystone Board. Shaw Centre (former Blairmore Centre), Saskatoon, Saskatchewan: Sold Naming Rights to the Shaw Centre and sold secondary sponsorships to the new recreation centre to companies that included Western Fitness, Hamm Construction and Nordic Fencing totaling over $2.5 million. Town of Strathmore, Strathmore, Alberta: Retained to price, package and sell Naming Rights and Secondary Sponsorships for a new recreation facility. Naming Rights was sold to Strathmore Motor Products. Secondary Sponsorships were sold to Strathmore Homes, EPCOR, and Sobey's. Town of Sedgewick, Sedgewick, Alberta: - Retained to price, package and sell naming rights for a recreation facility. Naming Rights was sold to Wild Rose Co -Op. Town of Wynyard, Wynyard, Saskatchewan: Retained to work with the general contractor to leverage in-kind support for the construction project. PSG has identified a Naming Rights Sponsor and is working with several secondary categories for a new multi -use recreation facility. TransAlta Tri -Municipal Leisure Facility Corporation, Calgary, Alberta — Retained to audit, package and renew Naming Rights to the TransAlta TriLeisure Centre, as well as audit, package and sell secondary Naming Rights. Sold Naming Rights packages to companies that included Aqua Tek Scuba, Beaverbrook Pioneer Ltd., Melcor Developments, NWT Promotions Inc., Pepsi, SMS Equipment, TransAlta, and Remax. TCU Place —Saskatoon's Arts & Convention Centre, Saskatoon, Saskatchewan: Priced, packaged, and identified a Naming Rights partner for the former Saskatoon Centennial Auditorium and Convention Centre. The Naming Rights sponsorship was sold for a total of $1.1 million, plus in-kind savings. List of Sample Projects Page 2 of 4 103 List of Sample Municipal Projects by Centre of Excellence for Public Sector Marketing (PSG Associate) City of Calgary (AB) The City of Calgary (Calgary Transit) received approval to pursue naming rights and sponsorship (pilot project) for a soon -to -be -opened Transit Facility. The consultant was contracted to conduct an asset inventory and valuation and develop a strategy to market the pilot project. The consultant will also spearhead efforts to market the facility to the corporate sector. City of Coquitlam (BC) The consultant conducted an assessment and valuation of the City's sponsorship and naming rights assets and prepared a Strategy / Implementation Plan that was completed in the Summer of 2014. The consultant has since advised the City on its launch activities. City of Hamilton (ON) The consultant provided a two-day Planning Workshop for municipal staff that led them through the process for developing their own sponsorship, advertising and naming rights program. City of Kitchener (ON) The consultant conducted a comprehensive assessment and valuation of the City's sponsorship, advertising and naming rights assets, as well as a detailed strategy that was presented by the consultant to City Council in December, 2013. Since approval of the program, he has provided advice to the municipality on roll-out strategies. City of Leduc (AB) The consultant conducted a comprehensive assessment and valuation of the City's sponsorship, advertising and naming rights assets and presented the findings and key recommendations to City Executives and City Council. The consultant recently presented detailed strategy to City Council and is now assisting with the implementation of the program. City of London (ON) The consultant conducted an assessment and valuation of the City's sponsorship and naming rights assets and prepared a strategy / business case that was presented to City Council in the Spring of 2014. The consultant since then assisted the City with its launch activities. City of Red Deer (AB) The consultant conducted an assessment and valuation of the City's sponsorship and naming rights assets and preparing a Sponsorship Strategy that was presented to City Council in the Spring of 2015. City of Vaughan (ON) The City of Vaughan wanted to implement an overall sponsorship strategy for the municipality that built on their event sponsorship initiatives, with a much greater focus on naming rights and leveraging other opportunities beyond the current special events portfolio. The consultant has played a lead role in assessing naming rights and sponsorship opportunities as well as developing the overall strategy that was presented to City Council in November, 2013. List of Sample Projects Page 3 of 4 104 City of Winnipeg (MB) The consultant conducted a valuation of the 7-0aks Sportsplex for naming purposes and provides advice to the City of Winnipeg on a range of sponsorship issues. Town of Beaumont (AB) The consultant conducted a valuation of civic facilities, programs, and services and developed the Sponsorship Strategy, Cost/Benefit Analysis, and Implementation Plan that was presented to Council in the Fall of 2014. Township of King (ON) The consultant conducted a valuation of the Township's new recreation facility which assisted in the development of a 50 -year naming rights agreement for the new facility (Trisan Centre). Town of Newmarket (ON) The consultant conducted a'valuation of sponsorship assets for the town's new Riverwalk Commons outdoor entertainment and community programming space in the downtown core. List of Sample Projects Page 4 of 4 105 PSG �f Performance Sponsorship Group TEAM CV 75 First Street, Suite -212, Orangeville, ON Canada L9W 5B6 I (416) 399-4600 jhaber@performancesponsorship.com I www.performancesponsorship.com Judy Haber Senior Partner, Performance Sponsorship Group Inc. Role: Project Lead Profile Summary: Judy Haber is one of the most successful Sponsorship Specialists in Canada. She started her career in 1990 pricing, packaging and selling event sponsorships. She then segued into Municipal sponsorship in 1996 when she identified Hummingbird as the Naming Rights partner for the former O'Keefe Centre. Since then Haber has provided leadership to several City and Town counsellors. In some cases, the counselling occurs months before that Town or City consider getting into the business of Corporate Sponsorship, Naming Rights and Marketing Partnerships. Once the City is engaged in the business of Corporate Partnerships, Haber plays a pivotal role in ensuring all stakeholders (staff, councilors, community members, local business) understand the value of working collaboratively with local Companies who want to invest in their community. Judy has consistently shown her ability to access corporate decision -makers and has enjoyed an enviable success rate in securing corporate sponsorships, partnerships and Naming Rights partners. Fully conversant with all the marketing principles that affect the sales, Haber has negotiated with, and sold sponsorship packages to companies that include: • Advantage Insurance • Affinity Credit Union • Agrium Inc. • Air Canada • Alberta Treasury Branch (ATB) • Alquinn Homes • Aurora Dental • Beaverbrook Communities • Bell Canada • BILT Enterprises 106 • Border Paving • Can Pak Environmental • Canalta Hotels • Central City Asphalt • Chateau Wines • Co -Operators • Dairy Queen • Direct Energy • Edson Chrysler • EPCOR • Fountain Tire • Freightliner Red Deer • Gary Moe Auto Group • Hallmark Realty • Hamm Construction • IBM • Johnson & Hebert • Kles Air Mechanical • Lacombe Dental • Loraas Disposable Services • Melcor Development • Mocon Construction • Myshak • Nordic Fencing • North Prairie • NWT Promotions Inc. • Panasonic • Pepsi • Pizza 73 • Provident Energy Trust • Qualico • Realty Executives • Red Deer Bottling • Red Deer Freightliner • Remax • Rogers • Scott Builders Pickering — Team CV Page 2 of 10 107 • Servus Credit Union • Shaw Communications • Shoppers Drug Mart • Sirius Satellite • SMS Equipment • Sobey's • Stantec • Strathmore Homes Ltd. • Strathmore Motor Products • Subaru • Subway Restaurants • Tim Hortons • TR Petroleum • TransAlta • TRX RV • Vale • Western Fitness • Wynyard Co -Op • Zender Ford • Judy has also enjoyed a career in public speaking for the past 25 years. Speaking largely to Municipal staff, at conferences that include: • Association ofFundraising Professionals • Alberta Recreation Parks Association • Banff Fundraising Compass • Festivals and Events Ontario • Florida Parks and Recreation • IEG Sponsorship Conference • International Association of Fundraising Professionals, • Western Sponsorship Congress, • Toronto Sponsorship Congress, • Saskatchewan Urban Municipal Association, • Government Finance Officers Association of Alberta • Municipal Officers Association Pickering — Team CV Page 3 of 10 108 Janet Schofield, Senior Consultant, Performance Sponsorship Group Role: Project Consultant / Research Profile Summary: Janet Schofield has been a valuable member of the Performance Sponsorship Group team for more than 13 years. Janet possesses a strong background in administration and brings creativity and a disciplined approach to each project she participates in. Janet has been involved in the valuation of many City assets, both facilities and programming. She has also been involved in the writing and design of sales documents that includes overall Naming Rights, Secondary Naming Rights, and Event Sponsorship. She has also been instrumental in providing research to qualify prospects deemed most appropriate for selected City Assets. Janet has been involved in the matching of City assets with companies who are looking for the demographic and experiences. She has provided invaluable research support for numerous successful projects such as: • City of Edmonton • City of Lacombe • City of Port Colborne • City of Vaughan • Famous Players IMAX Theatres • Grant MacEwan University • Martensville Athletic Pavilion • National Arts Centre • Queen's University • Red Deer College • Shaw Centre • Toronto Reference Library • TransAlta Tri leisure Centre • University of Calgary • Wynyard Arena Pickering — Team CV Page 4 of 10 109 In addition, Janet has helped to create and build the B&O Yorkville Run for Charities. For the past eight years, she has provided invaluable support and backup for the B&O team, working with companies that include: • Camrost Felcorp • Clif Bar • Coca Cola • Deluge Water • Equinox • Flow • Food Dudes • Freshi • Happy Pops • Healthy Crunch • Inner Raw Natural Energy • Larabar • Lexus • Mamma's Pizza • Marty's Pickles • Meatbar • Mizrahi Developments • Morguard • Nestle • New Balance • Panda • Paramount Foods • Pusateri's • Revitasize • Sobey's • Stableview Asset Management • Summer Fresh • TD Securities • Toronto Popcorn Company • Vita Coco • Whole Foods Janet also helped create and grow the Woolwich Golf Tournament, in Orangeville, Ontario, an event that PSG sponsored, which benefitted the Orangeville Women's Shelter. 110 Pickering — Team CV Page 5 of 10 generation. Bernie Colterman Managing Partner, Centre of Excellence for Public Sector Marketing Role: Project Consultant Profile Summary: Bernie Colterman is Co -Founder and Managing Partner of the Centre of Excellence for Public Sector Marketing. He is the former President of CMG Canada, an industry leader in the areas of sponsorship development, not-for-profit marketing and revenue Throughout his 20 -year marketing career, Bernie has contributed to a diversified portfolio of marketing campaigns for the public, not-for-profit, and the business sectors. A master at brokering commercial partnerships, he has. facilitated hundreds of collaborative arrangements for both industry and government; raising over $30 million dollars in corporate sponsorships and spearheading high profile partnership initiatives for national campaigns and major business events. Much of this work has involved helping organizations take a more strategic approach towards all facets of revenue generation. His strong marketing and sales background provides a comprehensive, yet practical approach to revenue analysis and his company's proprietary valuation model sets the standard in Canada for sponsorships and commercial partnerships value measurement. Bernie is recognized nationally as a leader in the area of Municipal Sponsorship Development. His direct work with municipalities such as Abbotsford, Beaumont, Brampton, Burlington, Calgary, Coquitlam, Kitchener, Leduc, London, Newmarket, Ottawa, Red Deer, Township of King and Vaughan have provided him with a deep understanding of the opportunities and constraints of working in a municipal environment and his Municipal Forum on Sponsorship helps dozens of municipalities take a more strategic approach towards sponsorship, naming rights and other non -tax revenues. Pickering — Team CV Page 6 of 10 111 Through his consulting practice, Bernie offers strategic advice in the areas of strategic marketing planning, social marketing, corporate engagement and revenue development. Current or recent clients include: • Alberta 2012 Special Olympics • Canadian Association of Defence and Security Industries • Canadian Air Transport Security Authority • Canadian Housing and Renewal Association • Canadian Blood Services • City of Ottawa • International City/County Management Association • Innovation Centre • Nature Canada • Victorian Order of Nurses • Public Health Agency of Canada Bernie is Executive Producer of MARCOM, a national forum for advancing the marketing discipline in the public and not-for-profit sectors. He is also co-director and faculty member. of Carleton University's Sprott School of Business, Professional Certificate in Public Sector and Non -Profit Marketing where he teaches a two-day module on partnerships and other collaborative arrangements. His highly acclaimed Designing and Selling Your Sponsorship Program and Revenue Generation Boot Camp workshops are attended by hundreds of professionals each year. Bernie is a regular contributor to publications and speaker at conferences related to the public and non-profit industry. Recent speaking engagements include: • MARCON • Sprott School of Business • Canadian Society of Association Executives • Association of Fundraising Professionals • Canadian Association of Fairs and Exhibitions • Festivals and Events Ontario Annual Conference Bernie's Blog on Sponsorship and Partnerships can be found at www.berniecolterman.ca Pickering — Team CV Page 7 of 10 112 Claire Mills Managing Director / Senior Consultant Role: Project Consultant / Research Profile Summary: As Managing Director of the Centre of Excellence for Public Sector Marketing, and Project Management Professional, Claire plays a lead role in managing the day-to-day business of the organization as well as managing several portfolios with major public sector clients including the Canadian Air Transport Security Authority and Public Works and Government Services Canada. In her Senior Consultant role, Claire provides marketing research, planning and strategic communications. She played a major role in developing the City of Ottawa's Sponsorship and Advertising Strategy and delivering a Corporate Engagement Benefits Framework to Parks Canada. A master at detailed planning and execution, Claire is able to take complex projects and develop concise work plans and processes to ensure that each project stays on track. Claire was also actively involved in delivering GTEC WEEK, Canada's largest IT conference and trade show for the public sector; managing the event's $1 million sponsorship and advertising program and working with internal stakeholders as well as senior representatives from government, the private sector on all aspects of their participation in the event. Claire worked closely with a wide range of clients including: • Bell. • Corel • RIM • Oracle • Peoplesoft • Telus • Microsoft • Sun • Dell • IBM • CGI Pickering — Team CV Page 8of10 113 • EDS • .Deloitte • Novell For the past 12 years, Claire has taken a lead role in managing and delivering MARCOM Professional Development, a 3 -day public sector marketing event, including a conference for 300 delegates and trade show for over 40 exhibitors and sponsors. Claire is responsible for managing exhibit and sponsorship sales, marketing and delivery of all forum components including working with many of Ottawa's top marketing and media organizations. Prior to joining the firm in 2000, Claire served as a Project Manager for EDS / SHL Systemhouse where she delivered targeted marketing programs and played a lead role in planning and executing company sponsorship and sales strategy. Scott Purdy President, Gravity Design Inc. Role: Graphic Designer Scott Purdy is a creative director with over 20 years' experience in design, advertising, sales and marketing. He is president of Toronto- based design studio, Gravity Design Inc., and works with a wide range of clients across multiply industries. Scott's role at Gravity Design is the creative lead on projects which include sales documents, educational documents, branding/logos, websites, point-of-sale graphics, packaging, digital graphics, event graphics, tradeshow graphics and signage. Often projects will span various digital and print platforms providing a better opportunity to reach the intended audience. He understands that the creative vision on each project must be developed to meet specific business objectives. Factors that are considered when working on projects include brand consistency, targeted content, clear call to actions, and relevant images. To enhance the overall design and engage the viewer, great care is taken when selecting colours, photos, illustrations, fonts, infographics, spot graphics, etc. Pickering — Team CV Page 9 of 10 114 Scott has experience in the design and development of sponsorship sales documents and signage used to help close deals. He has recently worked with the PSG team on assignments that include: • The National Arts Centre • Town of Sedgewick • City of Calgary • City of Welland • City of Saskatoon • B&O Yorkville Run In addition to working with PSG, Gravity Design Inc. clients include BroadView Software, Canada Guaranty, Street Capital, Health Nexus, HC Link, Zendo On-line, Toronto East General Hospital, BFI Ontario, Santis Health, SickKids hospital, Falcon Lumber, Joiner Bikes, NHCC, Bridges to Community Canada and The Aphasia Institute. Pickering — Team CV Page 10 of 10 115 Gty :F DICKERING Report to Executive Committee Report Number: CS 08-18 Date: June 18, 2018 From: Marisa Carpino Director, Community Services Subject: Waterfront Trail Winter Maintenance - File: A-1440 Recommendation: 1. That Council receive report CS 08-18 for information regarding Waterfront Trail Winter Maintenance. Executive Summary: At the Budget Committee Meeting of February 15, 2018, Council asked staff to investigate the feasibility of performing winter maintenance on Pickering's waterfront trail. Currently, the City does not perform any form of winter maintenance on the waterfront trail and signs informing trail users are posted accordingly. Winter maintenance standards for waterfront trails vary among municipalities. Each municipality sets priorities based on staffing levels and available funding. In any case, the ability to provide winter maintenance on trails depends largely on whether the trail network was originally ready - built for winter control and how exposed sections of the trail are to the elements. For instance, heavily wooded sections of trails are particularly difficult to maintain. Pickering's waterfront trail presents many challenges for effective and efficient winter maintenance. This report identifies those challenges, proposes.solutions and identifies the associated budget implications of approximately $2,390,000.00 for initial capital improvements and $170,000.00 in new annual maintenance costs. A well conceived winter maintenance plan with dedicated resources and available funds can overcome these challenges for winter maintenance of the waterfront trail should Council direct staff to provide this level of service. Financial Implications: Maintaining Pickering's waterfront trail to bare surface will have both Capital and Current budget implications as described below. Capital Budget Implications: The approved 2018 Capital Budget includes $200,000.00 for resurfacing a section of Peak Trail from Sandy Beach Road to Brock Road. This section of Peak Trail is currently maintained during the winter due to the link it provides between Ontario Power Generation buildings in the absence of a sidewalk. This section of the trail consists of an asphalt pathway which has deteriorated to a point that resurfacing is required. 116 CS 08-18 June 18, 2018 Subject: Waterfront Trail Winter Maintenance Page 2 Peak Trail from Brock Road to Montgomery Road is also in poor condition and should be considered for resurfacing and drainage construction in the near future. This section of the trail is 1,019 metres long and, at an average cost of $70 per square metre, will cost approximately $450,000.00 to resurface (currently not reflected in the Capital Budget). Due to water conditions along this section, additional funding may be required to upgrade the base material and address drainage challenges. The 2019 Capital Budget currently includes $200,000.00 for trail improvements on Monarch Trail which extends from Elvira Court to Bruce Hanscombe Park. The scope of work involves widening the trail to three metres wide, replacing the existing culverts, and installing retaining walls, new pathway lighting, and railings. As this section of trail crosses a water course, the Toronto and Region Conservation Authority (TRCA) may need to be consulted to confirm requirements they may have prior to proceeding. TRCA requirements may affect the cost of reconstructing this section of the trail. The Capital Budget of $200,000.00 may not be sufficient for the scope of work required and staff will be recommending increasing the budget to $300,000.00 in next year's budget submission to Council. The 2021 Capital Budget includes $1,340,000.00 budgeted for the replacement of the boardwalk on Peak Trail. The boardwalk is 18 years old and has deteriorated over time due to weather elements, including high water levels during the spring and summer of 2017. The replacement of the boardwalk should occur earlier than 2021. The material chosen to replace the boardwalk will determine if winter maintenance of this section of Peak Trail will be feasible in the future. Ability to renegotiate the lease agreement with Ontario Power Generation (OPG) will also determine feasibility of winter maintenance of the boardwalk. In total, the capital investment to trail infrastructure to enable winter maintenance is approximately $2,390,000.00 as per below: Capital Projects ' Proposed Budget Resurfacing Peak Trail from Sandy Beach Road to Brock Road (2018 Capital Budget) $ 200,000.00 Resurfacing Peak Trail from Brock Road to Montgomery Road (unbudgeted) $ 450,000.00 Improvements Monarch Trail from Elvira Court to Bruce Hanscombe Park ($200,000.00 in 2019 Capital Forecast) $ 300,000.00 Replacement of the boardwalk on Peak Trail (2021 Capital Forecast) $ 1,340,000.00 Contingency $ 100,000.00 Total $ 2,390,000.00 Current Budget Implications: First Year Start Up Costs: An. additional $2,000.00 will be required in the Parks Budget (2718.2482) to re-sign all sections of the waterfront trail to reflect the new winter maintenance standards. This will include signage posted at secondary pathways that link into the waterfront trail 117 CS 08-18 June 18, 2018 Subject: Waterfront Trail Winter Maintenance Page 3 that will not be winter maintained. Signage for the lightweight bridge structures and stairways is required should it be determined that they are not suitable for winter maintenance. Signage will also need to be changed in existing parks where the waterfront trail passes through and is currently not maintained. In order to allow for winter maintenance equipment to access the waterfront trail for winter maintenance, operations bollards at the eight entry points to the trail will either need to be removed or relocated. Public Works staff would be able to perform the work in-house at a projected cost of $3,500.00. This cost includes staff wages and materials required to complete the. task. This cost assumes that the existing bollards can be reused; should new bollards need to be purchased, it would cost an additional $1,500.00 per location. Current Budget - First Year Start Up Cost Proposed Budget New Signage for trail system indicating winter controlled sections $ 2,000.00 Bollard removal to permit plow access $ 3,500.00 Contingency for unforeseen $ 3,000.00 Total $ 8,500.00 Annual Costs: The annual Current Budget for turf repairs (2718.2482) will need to be increased by an additional $10,000.00 to repair the damage to the turf along the waterfront trail caused by the winter maintenance operations. The annual Current Budget for salt and eco -traction (2320.2408) will also need to be increased by $15,000.00 for the additional salt and eco -traction required to perform winter maintenance on the waterfront trail. The City averages 33 snow clearing events each winter. Adding an additional 6 kilometres of waterfront trail to the winter maintenance program will lead to an increase in salt and eco -traction usage. Parks staff are currently at capacity and cannot increase the daytime workload without a negative impact to existing levels of service. Therefore, additional staff resources are required to undertake winter maintenance of the waterfront trail. Currently, Parks has 8 Term Labourers who work 8 months out of the year. It is recommended that 3 of these Term Labourer positions be converted to 3 full-time positions for the purpose of winter maintenance and inspections of the waterfront trail. The yearly cost associated with converting 3 Term Labourer positions to 3 full-time positions is anticipated to be $140,000.00 (2718.1100) . These staff will be responsible for clearing the waterfront trail to bare surface using existing equipment. Where standard snow clearing equipment cannot access the waterfront trail, these staff will be responsible for clearing these sections of the trail by hand using shovels and snow blowers. 118 CS 08-18 Subject: Waterfront Trail Winter Maintenance June 18, 2018 Page 4 Current Budget -Annual Cost Proposed Budget Turf repairs caused by trail winter control $ 10,000.00 Salt & eco -traction additional use $ 15,000.00 Additional staff cost for winter control $ 140,000.00 Winter control overtime for trail $ 6,000.00 Total $ 171,000.00 In total, the Current Budget implications are approximately $180,000.00 in year 1 and $171,000.00 annually thereafter in order to maintain the waterfronttrail to bare surface. Discussion: The waterfront trail is divided into the following 3 separate trail systems: 1. First Nations Trail — this trail starts at the Toronto/Pickering border at the end of Dyson Roadand ends at Monarch Trail entrance on Beachpoint Promenade (3.0 km). 2. Monarch Trail — this trail starts at Beachpoint Promenade, goes around Frenchman's Bay, and ends at Beachfront Park at the bottom of Liverpool Road (4.8 km). Peak Trail — this trail starts at Beachfront Park and ends at the Pickering/Ajax border at the end of Frisco,Road (4.2 km). In total, Pickering's waterfront trail is 12 kilometers in length. By comparison, the waterfront trail in Ajax is 6 kilometers in length. Pickering's waterfront trail is comprised of several different surface types ranging from 3 metre wide asphalt, concrete residential sidewalks, on -street portions, and a boardwalk made from Trex plastic lumber. All 3 sections of the waterfront trail have common and unique challenges when it comes to performing winter maintenance which includes pavement structure, trail alignments, trail condition, snow storage, salting/sanding and staffing resources (refer to Attachment 2 for a detailed summary). Currently, the City provides winter control for a total of 6.1 kilometers of the waterfront trail. First Nations Trail has 1.3 kilometres that the City provides winter maintenance for (the on -street sections of the trail along Rodd Avenue and from Marksbury Road over to Beachpoint Promenade). Monarch Trail currently has 4 kilometers that the City provides winter maintenance for (both on street and residential concrete sidewalk sections of the trail). Peak Trail currently has 0.8 kilometers that the City provides winter maintenance for (a 3 metre wide asphalt trail section from Sandy Beach Road to Brock Road). The City currently does not maintain the remaining 5.9 kilometres of the waterfront trail during winter months. This maintenance standard is clearly stated on the main entry signage to inform users, which places the City at a lower duty of care and lower liability risk. Should the waterfront trail be maintained to bare surface, the entire length of the waterfront trail would be subject to similar provincial minimum maintenance standards as sidewalks, including a duty of regular and timely inspections. Inspection of the waterfront trail system is more difficult 119 CS 08-18 June 18, 2018 Subject: Waterfront Trail Winter Maintenance Page 5 than City sidewalks. City staff have road access to sidewalks to verify conditions and effectiveness of winter control operations. Much of the trail system is inaccessible to do drive by inspections. This reduced ability to inspect may increase the City's exposure to slip and fall claims. Additional signage to inform waterfront trail users that particular trails are maintained during winter while others are not would be required where the waterfront trail passes through parks that have other pathways. Pathways that will not be cleared will have to be individually signed to inform trail users. Alternatives: Grooming of the naturalized portions of the waterfront trail is an alternative to clearing to bare surface. Grooming packs the snow on the trail to improve access to the trail without requiring additional signage and maintains the City's current duty of care. Grooming would minimize damage to the asphalt trail and the associated liability created from poor asphalt conditions. Turf damage would also be minimized by grooming the waterfront trail as compared to clearing it to bare surface. However, grooming as an alternative to clearing to bare surface is not recommended by staff. Grooming requires specialized grooming equipment, additional staff resources and a consistent amount of snow to maintain snow packed levels on the trail. This is impossible to provide for on our waterfront trail because of its inconsistent exposure to shade and sun along the length of the trail system. The grooming method is more appropriate to ski trails and snowmobile trails which has consistent exposure to the elements. Municipal Comparators: The Town of Ajax provides winter maintenance to most of its waterfront trail measuring 6 km in length. There are some sections that are signed and closed due to factors such as low weight bridges and poor access for winter maintenance equipment. The Town of Ajax maintains their waterfront trail to bare surface for winter maintenance. Ajax uses a plow truck with salter to winter maintain its waterfront trail. On older sections that were not designed for the weight of the plow.truck, they use a sidewalk unit. The sidewalk unit requires several passes to open the waterfront trail to full width. Ice build up on sections of the Ajax waterfront trail can pose a concern due to inadequate drainage and require regular inspection and maintenance. Ajax has a maintained waterfront as opposed to Pickering's mainly naturalized waterfront. The Town of Whitby maintains a small section of their waterfront trail from Thickson Road to Haydenshore Park. The remainder of its waterfront trail is not winter maintained and signs are posted accordingly. Seaton: The neighbourhood communities in Seaton are to be linked by an extensive network of "primary neighbourhood connecting trails" which, as part of the integrated transportation plan that will provide links for pedestrian, bicycle, skateboard etc. between individual residential subdivisions. Subject to successful consultation with Toronto and Region Conservation Authority and Ministry of Natural Resources and Forestry, it is the City's intention that these primary trails be constructed to allow year round maintenance including full winter control. As such, the trails shall be asphalt and constructed with a sub -base designed to take the load of maintenance equipment. The trail system shall also be lit throughout the length of the system. Accordingly, Public Works staff will assume maintenance of sections of trail as they are completed and access points opened at the trail heads. 120 CS 08-18 June 18, 2018 Subject: Waterfront Trail Winter Maintenance Page 6 Attachments: 1. Common and Unique Challenges to Waterfront Trail 2. Photographs of Waterfront Trail Challenge Locations 3. Waterfront Trail Map Prepared By: John Doak For ief " n P rks Operations Rob Gagen Supervisor, Parks Operations BriarY Division Head, Operations JD:hd Approved/Endorsed By: Marisa Camino, M.A. Director, Community Services Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer 121 Common and Unique Challenges to Waterfront Trail Waterfront Common Challenges Discussion Pavement Structure Much of the pathways construction along the Waterfront Trail was not designed to withstand the weight of maintenance equipment. Maintaining pathways that have not been installed with an adequate subgrade/pavement depth/granular depth will decrease the life cycle of the path and necessitate earlier reconstruction. Should winter maintenance of the Waterfront Trail,be endorsed, the design and construction of paths will need to be updated for future pathways. The Waterfront Trail has been constructed over water courses and ditches. In these situations, the crossing structures have not been designed for maintenance vehicles. These crossing structures will need to be cleared by hand. Trail Alignments The Waterfront Trail is typically not straight and may have grade fluctuations as the path follows the natural contours of the ground. This will be problematic for winter maintenance. Plow operators will not be able to easily identify the asphalt path and may plow onto the grassed areas. During heavy snowfalls and early in the season, extensive sod damage may occur while plow operators try to navigate the curving pathways. This damage would require repair in the spring. Paths are commonly designed to follow natural contours of the ground which may create "low spots" which are subject to ponding during freeze -thaw cycles. These locations would have to be regularly maintained and salted to avoid unfavourable conditions. Ice build up will create slip and fall issues and the ice will be difficult to remove. O Entry points onto the Waterfront Trail have bollards to prevent vehicles from entering the path. These bollards will need to be removed or relocated to allow access for winter maintenance equipment. Waterfront Common Challenges Discussion Trail Condition In some sections of the Waterfront Trail, asphalt is in fair (or worse) condition. Plowing these paths to bare surfaces would result in significant asphalt damage/potholing and expedite their deterioration and need for replacement. Snow Storage While in most cases there will be adequate areas to place the snow, pushing it over the banks and dealing with slopes may cause isolated issues as winter progresses across the Waterfront Trail. There could be times and locations where a sidewalk plow would be required to push back these snow banks using a snow blower attachment. Salting/Sanding To adequately maintain the Waterfront Trail to bare asphalt, sand/salt will need to be used. Given the natural environment involved and the proximity to streams and the lake, this is highly unfavourable. The sand/salt and eco traction supply will need to be increased to accommodate additional use. The use of sand/salt will contribute to an increase in the amount of turf damage adjacent to the pathways and would require additional spring maintenance and turf repair. Staffing/Resources Public Works staff are currently at full work capacity and can not increase the workload without a negative impact to existing levels of service. Additional staff resources are required to undertake winter maintenance of the Waterfront Trail. Public. Works currently has one spare sidewalk unit that was purchased in 2014.for Seaton. An operator for this piece of equipment was not included in the budget. 'irstNations Trail Challenges Discussion Pathway Structure The stairway from Dyson Road to First Nations Trail can not be cleared by current winter maintenance equipment. To adequately maintain the stairway to bare concrete will require Public Works staff to clear the snow and salt the stairway by hand. An increase to the staffing compliment is required. Light Weight Bridge Structures There are two lightweight bridge structures crossing water courses on the First Nations Trail. Both bridge structures have wood decks that can not support the weight of current winter maintenance equipment. To adequately maintain the bridge decks to bare wood, the bridge structure will need to be upgraded to accept the weight of winter maintenance equipment or cleared by hand, necessitating an increase in the staffing complement. The most economical and environmentally friendly solution would be to clear by hand with specialized equipment. The bridge structures can not be salted and staff will need to use a non-corrosive product to reduce slip and fall hazards. Eco traction is currently used on other bridge structures within the City. The budget for eco traction will need to be increased to maintain these two bridge structures during the winter. The bridge structures are in isolated locations. Public Works staff will be required to walk all equipment to the bridge locations to clear them by hand. Two additional staff will be required to clear sections of the Waterfront Trail not accessible to winter maintenance equipment. Monarch Trail Challenges Discussion Pavement Structure Monarch Trail has been constructed over water courses and ditches. The two main concerns are the pathway from Bruce Hanscombe Park to Elvira Court through Glen Ravine. The pathway is currently not wide enough for winter maintenance equipment and crosses a watercourse that feeds directly into Frenchman's Bay. The second concern is the pathway that loops through Progress Park. The pathway is immediately adjacent to Frenchman's Bay and a steel seawall. Implications listed below. Salt Sanding Salt contamination of the water and premature deterioration of the seawall is a concern along the pathway in Progress Park that is immediately adjacent to Frenchman's Bay. Peak Trail Challenges Discussion Pavement Structure Trex Boardwalk has not been designed for winter maintenance equipment. The boardwalk section of the' Peak trial is 566 meters long and 5 meters wide. The boardwalk will need to be cleared by hand pending OPG's approval. Lease Agreement The City's current lease agreement with Ontario Power Generation, Section 9.2, does not permit the performance of winter maintenance or the storage of snow on all Ontario Power Generation properties leased by the City. The current terms of the lease agreement with Ontario Power Generation affect the City's ability to clear sections of Peak Trail that pass through Alex Robertson Park and Beachfront Park. This includes the Trex Boardwalk section of Peak Trail. The lease agreement with Ontario Power Generation will need to be renegotiated to permit winter maintenance on the two sections of Peak Trail that pass through Alex Robertson and Beachfront Parks. Boardwalk E[vira Ravine Attachment #2 — Waterfront Trail Challenges .16.1110.m..• Ar."•-.• •-• ••• • _ _ - - • _ - •cycl:ISTS' MASE WALK OICYCLES THROUGH WALKWAY Peak Trail East of Brock Road Petticoat Bridge —Western Gateway and Stairs Car WATERFRONT TRAIL SYSTEM -201&- MONARCH TRAIL OA km). Maintained (4,O73an) ---- Uri -maintained (621m) FIRST NATIONS TRAIL (3 km) Maintained (1,2S7m) •••iM-maintained `•� (1,735m) Roads !.*.aintalned [4.2 km) TOTALS Maintained (6.2 km) t>n-mainrared (Si* CO 0 0 DICKERING Report to Executive Committee Report Number: CS 13-18 Date: June 18, 2018 From: Marisa Carpino Director, Community Services Subject: Supply and Delivery of One New Latest Model Year Articulating Front Loader - Quotation No. Q-30-2018 - File: A-1440 Recommendation: 1. That Quotation No. Q-30-2018 submitted by Hub International Equipment Ltd. in the amount of $222,610.00 (HST included) be accepted; 2. That the total gross project cost of $224,305.00 (HST included) and the total net project cost of $201,994.00 (net of HST rebate) be approved; 3. That the Director, Finance & Treasurer be authorized to finance the total net project cost in the amount of $201,994.0.0 as follows; a) the sum of $190,000.00, as provided for in the Roads Equipment Capital Budget be increased to $200,000.00 to be financed by the issue of debentures by the Regional Municipality of Durham over a term not to exceed five years; b) the sum of $1,994.00 to be funded from property taxes; c) the annual repayment charges in the amount of approximately $43,985.00 be included in the annual Current Budget for the City of Pickering (the "City") commencing in 2018, or such subsequent year in which the debentures are issued, and continuing thereafter until the debenture financing is repaid, and any financing cost to be paid out of the Current Budget; d) 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: The Public Works Section, within the Community Services Department, currently utilizes two articulating front loaders. One articulating front loader (Unit #115, a 2005 Case) was approved for life -cycle replacement in the 2018 Capital Budget. 130 CS 13-18 Subject: Supply and Delivery of One New Latest Model Year Articulating Front Loader June 18, 2018 Page 2 On February 16, 2018, an advertisement was placed on the City's website. Three companies responded by the closing date of Tuesday, April 17, 2018. The quotation submitted by Hub International Equipment Ltd. for one JCB 427HT Articulating Front Loader, has received the highest score from the Evaluation Committee, meets the required specifications, and is recommended for approval. In accordance with Purchasing Policy Item 06.11(b), 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 over $75,000.00 and up to $250,000.00, the Manager may approve the award, subject to the approval of the Director, Treasurer, CAO. However, since this project is debt financed, Council approval is being sought in order to formally request debenture financing for this project. Financial Implications: 1. Quotation Amount Supply and Delivery of One New Latest Model Year Articulating Front Loader HST (13%) Total Gross Quotation Cost $197,000.00 25,610.00 $222,610.00 2. Estimated Project Costing Summary Quotation No. Q-30-2018 GPS/2 way radio Sub Total HST (13%) Gross Project Cost HST Rebate (11.24%) Total Net Project Cost $197,000.00 1,500.00 198,500.00 25,805.00 $224,305.00 (22,311.00) $201,994.00 131 CS 13-18 Subject: Supply and Delivery of One New Latest Model Year Articulating Front Loader June 18, 2018 Page 3 3. Approved Source of Funds 2018 Roads Equipment Capital Budget Description Supply and Delivery of One New Latest Model Year Articulating Front Loader Total Funds Account Code Source of Funds Available Required Budget 5319.1802.6178 Debt - 5 years $190,000.00 $200,000.00 Property Taxes 0.00 1,994.00 $190,000.00 $201,994.00 Net Project Cost under (over) Approved Funds ($11,994.00) Discussion: The Public Works Section, within the Community Services Department, currently has two articulating front loaders. One articulating front loader (Unit #115, a 2005 Case) was approved for life -cycle replacement in the 2018 Capital Budget. An Evaluation Committee consisting of Public Works staff met on Thursday, April 26, 2018 and each committee member evaluated the quotations based on the rated criteria. A combined average score for each quotation was determined as part of Stage II of the evaluation process. Hub International Equipment Ltd. has received the highest score. After careful review of all submissions received, Public Works staff recommends acceptance of the Quotation No. Q-30-2018 submitted by Hub International Equipment Ltd. for one new articulating front loader in the amount of $222,610:00 (HST included) and that thetotal net project cost of $201,994.00 (net of HST rebate) be approved. Attachments: 1. Supply & Services Memorandum dated May 3, 2018 2. Being a By-law to authorize the Supply and Delivery of One New Latest Model Year Articulating Front Loader project and the issuance of debentures in the amount of $200,000.00 132 CS 13-18 June 18, 2018 Subject: Supply and Delivery of One New Latest Model Year Page 4 Articulating Front Loader Prepared By: Matthew *4 er Supervisor, Municipal Garage Operations Ray R •'• rigues, CPPB Manager, Supply & Services Director, Finance & Treasurer Approved/Endorsed By: Marisa Carpino, MA Director, Community Services Stan Karwowski, 117fBA, CPA, CMA MC:nw Recommended for the consideration of Pickering City Council Tony Prevedel, P. Eng. Chief Administrative Officer 133 ATTACHMENT # ) TO REPORT # C4 eS PICKERING 15 -ie Memo To: Marisa Carpino Director, Community Services From: Justin MacDonald, Buyer, Supply & Services Copy: Administrative Assistant, Community Services Ray Rodrigues, Manager, Supply & Services May 3, 2018 Subject: Quotation No. Q-30-2018 Supply & Delivery One (1) New Latest Model Year Articulating Front Loader Closing Date: Tuesday, April 17, 2018 at 12:00 Noon. File: F-5300-001 A summary of the Stage II and III evaluation results for each quotation is detailed below. Vendor Name Average of Evaluation Committee Points Awarded Quoted Amount (excluding HST) Points Awarded Price Total Points Awarded Hub International 67 $197,000.00 30 97 Nortrax 66 $202,544.00 29 95 Strongco Limited Partnership 65 $200,800.00 29 94 Hub International is the top ranked respondent with a submitted price of $197,000.00 (HST Excluded). A budget of $190,000 was provided to Supply & Services for this procurement and is debt financed. If the recommendation to award exceeds the budgeted amount, refer to Financial Control Policy Item 11 for additional instructions. In accordance with Purchasing Policy Item 06.04, the authority for the dollar limit as set out below excludes HST. 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: 134 (b) 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 provide your recommendation in report form as this is debt financed and requires Council approval. After receiving Council approval, an approved "on-line" requisition will be required to proceed. Please direct all enquiries to Supply & Services. Respondents will be advised in due course. If you require further information or assistance, do not hesitate to contact me or a member of Supply & Services. JM Page 2 of 2 135 ATTACHMENT # TO REPORT # 0/5. i The Corporation of the City of Pickering By-law No. Being a by-law to authorize the Supply and Delivery of One New Latest Model Year Articulating Front Loader project in the City of Pickering and the issuance of debentures.in the amount of $200,000.00 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 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 Supply and Delivery of One New Latest Model Year Articulating Front Loader project; and Whereas before authorizing the construction in respect of the Supply and Delivery of One New Latest Model Year Articulating Front Loader 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 CS 13-18 on the date hereof and awarded Quotation No. Q-30-2018 for the Supply and Delivery of One New Latest Model Year Articulating Front Loader project; 136 BY-LAW NO Page 2 Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. That the City proceed with the project referred to as "Supply and Delivery of One New Latest Model Year Articulating Front Loader"; 2. That the estimated costs of the project in the amount of $201,994.00 be financed as follows: a) the sum of $200,000.00 be financed by the issue of debentures by the Regional Municipality of Durham over a term not to exceed 5 years; and b) the sum of $1,994.00 be funded from property taxes; 3. That the funds to repay the principal and interest of the debentures be provided for in the annual Current Budget for the City commencing in 2018 or such subsequent year in which the debentures are issued and continuing thereafter until the debenture financing is repaid. By-law passed this 25th day of June, 201,8 David Ryan, Mayor Debbie Shields, City Clerk 137 Ct, ^F PICKERING Report to Executive Committee Report Number: CS 15-18 Date: June 18, 2018 From: Marisa Carpino Director, Community Services Subject: Quotation No. Q-39-2018 - Quotation for the Supply and Delivery of Two Multi -Purpose Tractors - File: A-1440 Recommendation: 1. That Quotation No. Q-39-2018 submitted by Joe Johnson Equipment in the total amount of $320,567.44 (HST included) be accepted; 2. That the total gross project cost of $324,522.00 (HST included) and the total net project cost of $292,242.00 (net of HST rebate) be approved; That the Director, Finance & Treasurer be authorized to finance the total net project cost as follows: a). the sum of $138,000.00 to be financed by an internal loan for a term of five years and the balance of $82.00 from property taxes; b.) the sum of $154,160.00 to be funded by a transfer from Development Charges — Parks & Recreation Services Reserve Fund; and That the appropriate officials of the City of Pickering be authorized to take necessary actions as indicated in this report. Executive Summary: The Public Works Section, within the Community Services Department, currently utilizes seven sidewalk tractors with snow plows and attachments for winter maintenance. Thereplacement of one sidewalk plow and one new sidewalk plow for winter maintenance in Seaton was approved in the 2018 Property Maintenance Capital Budget, funded from a five year internal loan and Development Charges — Parks & Recreation Services Reserve Fund, respectively. On March 14, 2018, an advertisement was placed on the City's website. Three companies responded by the closing date of Thursday, March 29, 2018. The quotation submitted by Joe Johnson Equipment, for two sidewalk plows with attachments, received the highest score from the Evaluation Committee, meets the required specifications, and is recommended for approval. In accordance with Purchasing Policy Item 06A1 (c), 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 over 138 CS 15-18 Subject: Quotation No. Q-39-2018 June 18, 2018 Page 2 $250,000.00, the Manager may approve the award, subject to the approval of the Director, Treasurer, CAO and Council. Financial Implications: 1. Quotation Amount 2 Multi-purpose Sidewalk Tractors with Attachments 1 Ribbon Snow Blower Attachment Subtotal HST (13%) Total Gross Quotation Cost $267,888.00 15,800.00 • $283,688.00 36,879A4 $320,567.44 2. Estimated Project Costing Summary Quotation No. Q-39-2018 1 Ribbon Snow Blower Attachment GPS/2 way radio's (2 vehicles) Total project cost (excluding taxes) HST (13%) Gross Project Cost HST Rebate (11.24%) Total Net Project Cost $267,888.00 15,800.00 3,500.00 $287,188.00 37,334.00 $324,522.00 (32,280.00) $292,242.00 3. Approved Source of Funds — 2018 Fleet Vehicles Capital Budget Description Account Code Source of Funds Available Required Budget 1 Sidewalk Plow 5311.1801.6178 Internal Loan — 5 $145,000.00 $138,000.00 with attachments 1 Sidewalk Plow with attachments & Ribbon Blower attachment Total Funds Year Property Taxes 82.00 5311.18076478 Development Charges — Parks & Recreation Services 155, 000.00 154,160.00 $300,000.00 $292,242.00 Net Project Cost under (over) Approved. Funds $7,758.00 139 CS 15-18 June 18, 2018 Subject: Quotation No. Q-39-2018 Page 3 Discussion: The Public Works Section, within the Community Services Department, currently utilizes seven sidewalk tractors with snow plows for winter maintenance. One sidewalk plow (unit # 757) is a life cycle replacement for a unit purchased in 2004. One new sidewalk plow will be used for the 2018/2019 winter season to accommodate new growth in Seaton. Both sidewalk plows with attachments were approved in the 2018 Property Maintenance Capital Budget. An Evaluation Committee consisting of Public Works staff evaluated the quotations based on the rated criteria. A combined average score for each quotation was determined as part of Stage II of the evaluation process. After careful review of all submissions received, Public Works staff recommends acceptance of the Quotation No. Q-39-2018 submitted by Joe Johnson Equipment for two 2018 International 7400 SBA sidewalk tractors with attachments and one ribbon snow blower attachment in the amount of $283,688.00 (plus HST) and that the total net project cost of $292,242.00 (net of HST rebate) be approved. Attachments: 1. Supply & Services Memorandum dated May 1, 2018 Approved/Endorsed By: atthew Currer MarisacC. rpino, MA Supervisor, Municipal Garage Operations MC:nw Director, Community Services Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer Ray Rrigues Manager, Supply & Services Recommended for the consideration of Pickering Cit Council Tony Prevedel, P. Eng. Chief Administrative Officer 140 c4 DICKERING ATTACHMENT # 4- TO REPORT # /5--/e Memo To: Marisa Carpino May 1, 2018 Director, Community Services From: Jacqueline Charles Senior Purchasing Analyst Copy: Administrative Assistant, Community Services Ray Rodrigues, Manager, Supply & Services Subject: Quotation No. Q-39-2018 Supply and Delivery of Two Multi -Purpose Tractors Date Closed: Thursday, March 29, 2018, before 12:00 noon File: F-5300-001 A summary of the Stage II and HI evaluation results for each quotation is included in the evaluation attachment. Joe Johnson Equipment is the top ranked respondent with a total submitted price of $267,888.00 (HST Excluded). A budget of $300,000 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. In accordance with Purchasing Policy, 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 $250,000, the Manager may approve the award, subject to the approval of the Director, Treasurer, CAO and Council. Please provide your recommendation in report form. After receiving Council's approval, an approved "on-line" requisition will be required to proceed. Please direct all enquiries to Supply & Services. Respondents will be advised in due course. If you require further information or assistance, do not hesitate to contact me or a member of Supply & Services. JC Attachments (2) 141 ctz o/ PJCKER1NG Report to Executive Committee Report Number: CS 18-18 Date: June 18, 2018 From: Marisa Carpino Director, Community Services Subject: Architectural & Engineering Design Services for the Pickering Recreation Complex Renovations Request for Proposal No. RFP -7-2018 File: A-1440 Recommendation: 1. That Proposal No. RFP -7-2018 submitted by Barry Bryan Associates in the amount of $281,370.00 (HST included) be accepted; That the total gross project cost of $337,870.00 (HST included), including the amount of the proposal and other associated costs, and the total net project cost of $304,262.00 (net of HST rebate) be approved; That the Director, Finance & Treasurer be authorized to finance the net project cost of $303,262.00 by a transfer from the Rate Stabilization Reserve; and 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The Pickering Recreation Complex opened to the public in 1983, and has seen major additions in 1992 and 2009. That said, major renovations of the main lobby, concourse and dressing rooms have not been undertaken since its original construction. After 35 years, the main public spaces of the building are showing their age and do not conform to contemporary service standards and the public's expectations of municipal amenities. The Pickering Recreation Complex is also the City's primary location for the delivery of interior recreation space, programming and services. RFP -7-2018 includes complete design and consulting services for main floor renovations of the existing concourse, dressing rooms, staff offices and service counters, related security and accessibility upgrades, main entrance, exterior entrance and approach. Construction will occur in stages to minimize disruption to ongoing operations, and is anticipated to commence in 2019. Exterior site works will be undertaken as a separate construction project in 2020. Design for all work listed above has been included in the scope of work of this RFP. Request for Pre -Qualification No. RFPQ-4-2018 was issued on February 9, 2018. 5 companies submitted proposals, from which 3 proponents were successfully prequalified by the City to submit proposals for consideration. 142 Report CS 18-18 Subject: Request for Proposal for Architectural & Engineering Services for the Pickering Recreation Complex Renovations June 18, 2018 Request for Proposal No. RFP -7-2018 was released and made available for information to the prequalified proponents on March 26, 2018. An optional site visit was held on April 3, 2018. The RFP closed on April 12, 2018. All 3 prequalified companies submitted proposals. The two highest ranking proponents were interviewed on May 17, 2018. The scoring of the interview, in accordance with the terms of the RFP, determined the final ranking for recommendation of award. The final, highest ranking proponent's submission included a price of $281,370.00 (HST included) is recommended for approval. The total gross project cost is estimated to be $337,870.00 (HST included) and the total net project cost is estimated at $304,262.00 (net of HST rebate). Financial Implications: 1. Tender Amount Request for Proposal No. RFP -7-2018 HST (13%) Total Gross Project Cost $249,000.00 32,370.00 $281,370.00 2. Estimated Project Costing Summary Request for Proposal No. RFP -7-2018 Contingency Total Cost HST (13%) Total Gross Project Costs HST Rebate (11.24%) Total Net Project Costs $249,000.00 50,000.00 $299,000.00 38,870.00 $337,870.00 (33,608.00) $304,262.00 3. Approved Source of Funds 2018 Capital Budget — Rec. Complex -Core Account Code Source of Funds Budget 5731.1804.6230 Rate Stabilization Reserve $400,000.00 Total Funds $400,000.00 Required $304,262.00 $304,262.00 Project Cost under (over) approved funds by $95,738.00 Discussion: The Pickering Recreation Complex, located at 1867 Valley Farm Road, is the City's primary facility for indoor recreational programming and athletic amenities. Opened in 1983, it has seen major additions in 1992 and 2009, as well as several smaller scale renovations. The main concourse and service counters have not been significantly altered since the original 143 Report CS 18-18 June 18, 2018 Subject: Request for Proposal for Architectural & Engineering Services for the Pickering Recreation Complex Renovations construction of the Complex, but have been adapted over time to accommodate growing demand for services, increased programming and a corresponding increase in service staff. Thirty-five years later, many of the existing spaces in the main concourse are no longer well - configured to deliver the services and social venues the public has come to expect from public buildings. The lobby currently lacks the character it once had, which was appropriate for the nature of the building and the size of the space. It has been lost, gradually, as uses were added and crowded the available floor area. The finishes are worn and dated, and require frequent maintenance or localized replacement. The same conditions apply in the public and member change rooms, which must be upgraded to provide improved accessibility, respond to growing demand for individual private changing cubicles, and also provide consideration for all genders. Technological improvements, including security controls and Internet access, will form an integral part of the newly renovated space. The concourse must be a welcoming and comfortable social space, but also flexible to accommodate major events, rentals, and even local emergencies. Extensive public consultation will be involved, including outreach to members, pay as you go patrons, the general public, programming and recreation partners, tenants, and stakeholders of all ages, interests and abilities. Exterior work will focus on accessibility upgrades, including relocation of barrier -free parking to eliminate the need to cross active driving lanes, the provision of sheltered walkways to the main doors, improved lighting and security features, and replacement of the existing stamped asphalt with poured concrete surfaces for improved safety, ease of maintenance, and durability. Construction will be executed in phases, and is anticipated to proceed as follows: - Phase 1: Concourse, reception and offices (11,000 sq.ft.) - Phase 2: Dressing rooms (8,400 sq.ft.) - Phase 3: Main entrance and siteworks (1.5 acres) Phases 1 and 2 will be tendered 2019, with construction proceeding throughout the year. Phase 3 will be constructed separately in 2020, and may be tendered separately from Phases 1 and 2. Each phase of construction will be further broken down into stages of work to limit the impact of construction on public use of the facility. Some degree of inconvenience is unavoidable, but a work plan will be developed to ensure the ongoing delivery of services throughout construction. Request for Pre -Qualification No. RFPQ-4-2018 was issued on February 9, 2018. 5 companies submitted proposals, from which 3 proponents were successfully prequalified by the City to submit proposals'for consideration. Request for Proposal No. RFP -7-2018 was released and made available for information to the prequalified proponents on March 26, 2018. An optional site visit was held on April 3, 2018. The RFP closed on April 12, 2018. All 3 prequalified companies submitted proposals. The two highest 144 Report CS 18-18 June 18, 2018 Subject: Request for Proposal for Architectural & Engineering Services for the Pickering Recreation Complex Renovations ranking proponents were interviewed on May 17, 2018. The scoring of the interview, in accordance with the terms of the RFP, determined the final ranking for recommendation of award. The final highest ranking proponent's submission included a price of $281,370.00 (HST included) is recommended for approval. The total gross project cost is estimated to be $337,870.00 (HST included) and the total net project cost is estimated at $304,262.00 (net of HST rebate). Award to the highest ranking proponent, Barry Bryan Associates, will be conditional upon receiving the City's Health & Safety form, Certificate of Insurance and requisite approvals. The previous work experience and references of Barry Bryan Associates were reviewed and deemed to be acceptable as part of the pre -qualification process. Upon careful examination of all bids and relevant documents received, the Community Services Department recommends the acceptance of Request for Proposal No. RFP -7-2018 submitted by Barry Bryan Associates in the amount. of $281,370.00 (HST included) and that the total net project cost of $304,262.00 be approved. Attachments: 1. Supply & Services Memorandum dated March 16, 2018 2. Supply & Services Memorandum dated May 24, 2018. 145 Report CS 18-18 Subject: Request for Proposal for Architectural & Engineering Services for the Pickering Recreation Complex Renovations June 18, 2018 Prepared By: Vin e Plouffe, OAA, RAIC Manager, Facilities Capital Projects Brian I uff = d Division Head, Operations Ray Rodries Manager, Supply & Services Jody Morris Manager, Facility Programs & Administration MC:vp Approved/Endorsed By: Marisa Carpin•, MA Director, Community Services Stan Karwowski, CPA, CMA, MBA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer 4, 2.018 146 PSC(1. C4y bd \ G ATTACHMENT# 1 TO REPORT# OS l -16 Memo To Ray Rodrigues March 16, 2018 Manager, Supply& Services From: Marisa Carpino Director, Community Services Copy: Division Head, Operations Manager, Facilities Capital Projects. Subject: Request for Prequalification No. RFPQ-4-2018 - Architectural & Engineering Design Services for the Pickering Recreation Complex File: F-5300-001 Please accept this memorandum as my approval of the three highest ranking proponents to participate in Phase 2 of the procurement process which includes: • Barry Bryan Associates Limited • Aecom Canada Limited • The Ventin Group Limited As a result of my approval, 1 understand that these proponents will be invited to submit a proposal for the Pickering Recreation Complex Renovations. BD:as Attachment Memo from S&S dated March 15, 2018 147 PICKERING Memo To: Marisa Carpino March 15, 2018• Director, Community Services From: Ray Rodrigues Manager, Supply & Services Copy: Administrative Assistant, Community Services Subject: Request for Prequalification No, RFPQ-4-2018 Architectural & Engineering Design Services for the Pickering Recreation Complex Renovations Closing: Thursday, March 1, 2018 - File: F-5300-001 Further to memo dated March 5, 2018, Phase 1 of the procurement process is to prequalify proponents for Phase 2 of the procurement process, which will be Request for Proposal RFP -7- 2018, to submit a proposal for the Pickering Recreation Complex Renovations. The City will only invite Proponents, who in the sole discretion of the City, have been prequalified in Phase 1. Terms of Reference enables the City to select up to five (5) of the highest ranking Proponents to participate in Phase 2 of the procurement process. The evaluation committee recommends selecting the following three (3) highest ranking proponents: 1. Barry Bryan Associates Limited 2. Aecom Canada Limited 3. The Ventin Group Limited Please provide your approval to award in memo form to Supply & Services. Please direct enquiries to Supply & Services. If you require further information, please contact me or a member of Supply & Services. RR/jm Attachment 148 PICKE R1 NG ATTACHMENT# TO REPORT# CS )6' tS Memo To: Marisa Carpino May 24, 2018 Director, Community Services From: Justin MacDonald. Buyer, Supply & Services Copy: Administrative Assistant, Community Services Subject: Proposal No. RFP -7-2018 Pickering Recreation Complex Renovations Closing Date: Thursday, April 12, 2018 - File: F-5300-001 Further to earlier memo dated April 13, 2018, three proposals proceeded to Stage Il evaluation. The Evaluation Committee, consisting of City Staff from the Community Services Department who conducted independent evaluations of the proposals. A summary of average scores is completed and a copy is attached. In accordance with Item 2.5 Stage IV — Ranking and Contract Negotiations, all scores from Stage II and Stage III have been added together and the Proponents have been ranked based on their total scores. The Evaluation Committee instructed Supply & Services to arrange interviews for Barry Bryan Associates and Aecom to proceed to Stage V — Interviews. Interviews with Barry Bryan Associates and Aecom took place on Thursday, May 17, 2018. Barry Bryan Associates, Architects, Engineers, Project Managers is the highest ranking proponent in the amount of $249,000.00 plus HST. The highest ranking proponent may be engaged for contract negotiations. Please advise if this is required. A budget of $400,000.00 was provided to Supply & Services for this procurement. In accordance with Part B. Material Disclosures, Item 1, as a pre -condition of award, the selected proponent, Barry Bryan Associates will be required to provide the following documents for review: (a) A copy of the City's Health and Safety Policy form currently dated and signed; and (b) The City's certificate of insurance or approved alternative form shall be completed by the Proponent's agent, broker or insurer. Please advise if we are to proceed with this task. 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. 149 Please include the following items in your report to Council: 1. if Items (a) noted above are acceptable to the Co-ordinator, Health & Safety or designate, if required; 2. if Item (b) is acceptable to the Manager, Budgets & Internal Audit; 3. any past work experience with the highest ranking proponent Barry Bryan Associates 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 requisition will be required to proceed. Do not disclose any information to enquiries during this time. The Proponents will be advised of the outcome in due course. If you require further information, please feel free to contact me or a member of Supply & Services. JM attachments RFP -7-2018 Pickering Recreation Complex Renovations 150 Page 2 of 2 art a� DICKERING Report to Executive Committee Report Number: CS 19-18 Date: June 18, 2018 From: Marisa Carpino Director, Community Services Subject: Architectural, Landscape and Engineering Design Services for the Pickering Heritage & Community Centre - • Request for Proposal No. RFP -6-2018 File: A-1440 Recommendation: 1. That Proposal No. RFP -6-2018 submitted by Hariri Pontarini Architects in the amount of $743,675.60 (HST included) be accepted; That the total gross project cost of $947,076.00 (HST included), including the amount of the proposal and other associated costs, and the total net project cost of $852,871.00 (net of HST rebate) be approved; 3. That the Director, Finance & Treasurer be authorized to finance the net project cost of $852,871.00 as follows: a) the sum of $393,222.00 to be funded by a transfer from the Rate Stabilization Reserve; b) the sum of $34,647.00 to be funded by a transfer from Development Charges — City's Share Reserve; c) the sum of $113,171.00 to be funded by a transfer from Development Charges - Parks & ,Recreation Services Reserve Fund; d) the sum of $311,831.00 to be funded by a transfer from Development Charges — Library Reserve Fund; 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; and, 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The Pickering Heritage & Community Centre (PNCC) will be a new City facility, constructed to replace the existing Museum Administration Building and Greenwood Community Centre, both at end of life, and to accommodate the relocation of archival storage and related functions from the Main Branch Library. The specialized storage needs of the Library archives and Museum collection are very similar, and can share adjoining space to maximize functionality, public access, and cost efficiency. 151 Report CS 19-18 June 18, 2018 Subject: Request for Proposal for Architectural, Landscape and Engineering Services for the Pickering Heritage & Community Centre RFP -6-2018 includes complete design and consulting services for Phase 1 of the PHCC project, as well as schematic design of Phase 2 and a site use study for the future layout of the Museum's upper site. Phases 1 and 2 of the project will each be roughly 22,000 square feet in area. Phase 1 focuses on administrative offices for the Museum, collection and archive storage, a shared resource space, reception and gift shop areas, as well as common amenities and services. The upper site of the Museum is not serviced by municipal water or sewers, or natural gas. As such, a well -water supply with redundant backup and septic system will be required. The new facility must also take full advantage of sustainable design opportunities to minimize electrical demand, and consider alternatives to traditional heating and cooling equipment. Request for Pre -Qualification No. RFPQ-3-2018 was issued on February 9, 2018. Nine companies submitted proposals, from which four proponents were successfully prequalified by the City to submit proposals for consideration. Request for Proposal No. RFP -6-2018 was released and made available for information to the prequalified proponents on April 6, 2018. An optional site visit was held on April 16, 2018. The RFP closed on April 26, 2018. All four prequalified companies submitted proposals. The highest ranking proponent's submission included a price of $743,675.60 (HST included) is recommended for approval. The total gross project cost is estimated to be $947,076.00 (HST included) and the total net project cost is estimated at $852,871.00 (net of HST rebate). Financial Implications: 1. Tender Amount Request for Proposal No. RFP -6-2018 HST (13%) Total Gross Project Cost $658,120.00 85,555.60 $743,675.60 2. Estimated Project Costing Summary 152 Request for Proposal No. RFP -6-2018 Contingency Permits & Approvals Testing & Inspection Total Cost HST (13%) Total Gross Project Costs HST Rebate (11.24%) Total Net Project Costs $658,120.00 90,000.00 10,000.00 80,000.00 $838,120.00 108,956.00 $947,076.00 (94,205.00) $852,871.00 Report CS 19-18 June 18, 2018 Subject: Request for Proposal for Architectural, Landscape and Engineering Services for the Pickering Heritage & Community Centre 3. Approved Source of Funds 2018 Capital Budget — Community Centres Account Code Source of Funds Budget Required 5719.1806.6230 Rate Stabilization $695,079.00 $393,222.00 Development Charges — City's Share 61,245.00 34,647.00 Development Charges — Parks & Recreation Services 200,046.00 113,171.00 Development Charges — Library 551,208.00 311,831.00 Total Funds $1,507,578.00 $852,871.00 Project Cost under (over) approved funds by $654,707.00 The building will be designed to be energy efficient and with modern construction materials in order to control future building operating costs. Discussion: The Pickering Heritage & Community Centre is envisioned to address the needs of several different branches of City services. The existing Museum Administration Building, also known as the Robert A. Miller Building, is a hybrid structure including a 1867 post and beam wood frame with a 1967 wood frame addition. The building is poorly laid out and has insufficient space to house the Museum's reception space, gift shop, kitchen amenities, offices, conservation lab and collections storage. An engineering review completed in 2016 identified that the existing second floor framing required reinforcement to accommodate the weight of shelving and collection materials stored above the gift shop. The building is poorly insulated and has many age -based deficiencies. It cannot support the current staff complement or space needs of the Museum and must be replaced. Addition or renovation of the existing structure would not be cost effective. Located immediately to the east of the Museum's lower site, at 3551 Greenwood Road, the Greenwood Community Centre is a roughly 8,400 square foot, two-storey structure built of concrete block and steel framing. It was constructed in 1970 and has no wall insulation. Lack of insulation, aging windows and the poor condition of the building envelope also makes it expensive to heat and cool. The building is at end of life and would require significant investment within the next ten years in order to maintain. A new building to be located nearby on City property with larger and newer amenities will be a more cost effective and will best serve local residents and the municipality as a whole, over the long term. 153 Report CS 19-18 June 18, 2018 Subject: Request for Proposal for Architectural, Landscape and Engineering Services for the Pickering Heritage & Community Centre The existing municipal archives at the Main Branch Library have outgrown the existing room devoted for their use and no additional space is available at the Civic Complex to accommodate the required storage needs. The existing space also does not meet minimum requirements for archival storage space, including enhanced environmental and lighting controls. The 2016 Pickering Local History Collection Strategic Plan identified the need for expanded storage, including forecasted growth space for the next 15 years. The precise timing and form of a Main Branch Library expansion is still undetermined. Relocating the archives to the Pickering Heritage & Community Centre will generate shared benefits by combining the archive's functional requirements and amenities with similar needs for the Museum collection. Both storage spaces will remain distinct, but will share common use areas and benefit from proximity wherever possible. The Library's archivist is also expected to relocate to this new facility, improving opportunities for cooperation and collaboration with the Museum Conservator and Curator. Having the Museum collection and historical archives in a single facility also creates a single repository and point of public access for the City's history. The Pickering Heritage & Community Centre proposes to address all of the concerns above in a single new facility located on the existing upper site of the Museum property. Phase 1 of the project focuses on replacement and expansion of the administrative and collections storage needs of the existing Museum Administration Building. It will also include office, storage and resource space for the Library archives. A large multi-purpose room with foldable wall partitions will be provided to serve as programming and meeting space. This space would primarily be used by the Museum'during the day, then made available to the public after hours under staff supervision, which coincides with the main time of use for the existing Greenwood Community Centre. Pickering Museum Village currently lacks a storefront presence, and struggles continuously to spread awareness of its existence. The property on the upper site fronts directly onto Highway 7, but all existing buildings are sheltered behind trees, resulting in no street presence. Locating the Pickering Heritage & Community Centre closer to the north end of the site, to be directlyviewable from the highway, will dramatically improve its visibility and public awareness. The building itself can also serve as a billboard to advertise the City, its services, and potentially generate sponsorship_ revenue as a result. Limited existing services at this site will require ingenuity and creative design solutions well-suited to sustainable initiatives. Passive design, on-site power generation and storage, improved insulation and other technologies will be explored and incorporated into the final design. A well - water system with treatment and backup storage capacity will also be required. The Toronto Region Conservation Authority (TRCA) currently owns lands to the west and south of the Museum property. The 2012 Greenwood Conservation Lands Master Plan recommended works throughout these properties, including trail head connections to the Pickering Museum Village. The scope of work of this RFP includes a site use study which will help to better define the public and private areas of the upper site, including potential trail connections. This exercise will also reserve space for the potential future acquisition of other heritage buildings. Identifying a clear public access area will also allow perpetual access to the TRCA lands, whereas it is currently blocked when the Museum closes at 4:30 pm. 154 Report CS 19-18 June 18, 2018 Subject: Request for Proposal for Architectural, Landscape and Engineering Services for the Pickering Heritage & Community Centre Phase 1 will result in a building with a gross floor area of approximately 22,000 square feet. Schematic design of the Phase 2 portion of the building is included and is anticipated to expand the footprint by another 20,000 square feet. Phase 2 will also focus more on recreational and community amenities, and will include the demolition of the Greenwood Community Centre. A general layout for the Phase 2 work must be determined now to ensure that future spaces will properly interact with the layout of the current project. Site design will also need to accommodate the later expansion. All required services for both Phases are intended to be provided during Phase 1, including electrical, water and septic service. The existing Museum Administration Building will be demolished at the end of Phase 1, after the Pickering Heritage & Community Centre is fully occupied and operational. Request for Pre -Qualification No. RFPQ-3-2018 was issued on February 9, 2018. Nine companies submitted proposals, from which four proponents were successfully prequalified by the City to submit proposals for consideration. Request for Proposal No. RFP -6-2018 was released and made available for information to the prequalified proponents on April 6, 2018. An optional site visit was held on April 16, 2018. The RFP closed on April 26, 2018. All four prequalified companies submitted proposals. The highest ranking proponent'ssubmission included a price of $743,675.60 (HST included) is recommended for approval. The total gross project cost is estimated to be $947,076.00 (HST included) and the total net project cost is estimated at $852,871.00 (net of HST rebate). Award to the highest ranking proponent, Hariri Pontarini Architects, will be conditional upon receiving the City's Health & Safety form, Certificate of Insurance and requisite approvals. The previous work experience and references of Hariri Pontarini Architects were reviewed and deemed to be acceptable as part of the pre -qualification process. Upon careful examination of all bids and relevant documents received, the Community Services Department recommends the acceptance of Request for Proposal No. RFP -6-2018 submitted by Hariri Pontarini Architects in the amount of $743,675.60 (HST included) and that the total net project cost of $852,871.00 be approved. Attachments: 1. Supply & Services Memorandum dated March 7, 2018 2. Supply & Services Memorandum dated May 10, 2018 3. Pickering Local History Collection Strategic Plan dated June 15, 2016 155 Report CS 19-18 June 18, 2018 Subject: Request for Proposal for Architectural, Landscape and Engineering Services for the Pickering Heritage & Community Centre Prepared By: Vince Plouffe, OAA, RAIC Manager, Facilities Capital Projects Division Head, Operations Ray Rodrigues Manager, Supply & Services Tanya yce Supervisor, Cultural Services MC:vp Approved/Endorsed By: Marisa Carpjno, MA Director, Community Services Grant f Executive Officer Pickering Public Library Stan Karwowski, CPA, CMA, MBA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer Stoce ¢, 2o/8 156 I'1CKERING ATTACHMENT #_TO REPORT #. IQ "/6 Memo To: From: Marisa Carpino March 7, 2018 Director, Community Services Ray Rodrigues Manager, Supply & Services Copy: Administrative Assistant, Community Services Subject: Request For Prequalification No. RFPQ-3-2018 Pickering Heritage & Community Centre File: F-5300-001 Terms of Reference for Request for Architectural and Engineering Design Services for the Pickering Heritage & Community Centre was advertised on the City's website on February 9, 2018. Nine (9) companies have submitted a proposal. Stage I — Mandatory Submission Requirements — determines which submissions satisfy all the mandatory submission requirements and provides Respondents the opportunity to rectify deficiencies. Nine (9) proposals proceed to Stage II — Evaluation. Proposals are attached for evaluation, along with the evaluation criteria included in the RFPQ document. Each member of the evaluation committee shall independently review and score the submissions on the basis of the rated criteria outlined in Terms of Reference and sign the evaluation form. Attachments: 1. Stage 1— Evaluation of Submission Requirements 2. Stage II — Evaluation of Rated Criteria 3. Supplier Evaluation Form 4. Copy of the proposals received (Evaluation Team Only) Evaluation committee members shall forward the completed evaluation forms to Jacqueline Charles. In accordance with Purchasing Procedures 14.02 Item.17, committee members' scores for each Respondent will be totaled to establish an average score. A summary of average scores will be prepared by Supply & Services for review and discussion at a meeting set up for the evaluation committee, if required. Please direct all enquiries to Supply & Services. Respondents will be advised of the outcome in due course for those who have been selected to Phase 2 of the project. If you require further information, please contact me, or a member of Supply & Services. RR/jc� Attachments (4) 157 C4 DICKERING ATTACHMENT # • TO REPORT# LJ I c —16 Memo To: Marisa Carpino May 10, 2018 Director, Community Services From: Jacqueline Charles Senior Purchasing Analyst Copy: Administrative Assistant, Community Services Ray Rodrigues, Manager, Supply & Services Subject: Quotation No. RFP -6-2018 Architectural, Landscape and Engineering Design Services for the Pickering Heritage & Community Centre Closing Date: Thursday, April 26, 2018 at 12:00 Noon. File: F-5300-001 Further to earlier memo dated May 1, 2018, 3 proposals proceeded to Stage II evaluation. The Evaluation Committee, consisting of City Staff from the Community Services, Library and Finance Departments conducted independent evaluations of the proposals. A summary of average scores is completed and a copy is attached. In accordance with Item 2.5 Stage IV —Cumulative Score, all scores from Stage II and Stage III have been added together, the proponents have been ranked based on their total scores, and may be selected to attend an interview in Stage IV. The Evaluation Committee has confirmed that the Stage V - Interview, will not be required. Hariri Pontarini Architects is the highest ranking proponent in the amount of $658,120.00 plus HST. The highest ranking proponent may be engaged for contract negotiations. Please advise if this is required. A budget of $1,500,000 was provided to Supply & Services for this procurement. In accordance with Appendix D — Request for Quotations Particulars, Item B: Material Disclosures, as a pre -condition of award, the selected proponent Hariri Pontarini Architects will be required to provide the following documents for review: (a) A copy of the City's Health and Safety Policy form currently dated and signed; and (b) The City's certificate of insurance or approved alternative form shall be completed by the Proponent's agent, broker or insurer. Please advise if we are to proceed with this task. 158 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 additionalapproval of Council. Please include the following items in your Report to Council: 1. if Item (a) noted above is acceptable to the Co-ordinator, Health & Safety or designate, if required; 2. if Item (b) is acceptable to the Manager, Budgets & Internal Audit; 3. any past work experience with the highest ranking proponent Hariri Pontarini 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 requisition will be required to proceed. Do not disclose any information to enquiries during this time. The Proponents will be advised of the outcome in due course. If you require further information or assistance, do not hesitate to contact me or a member of Supply & Services. JC Attachments (2) Page 2 of 2 159 ATTACHMENT # TO REPORT # C%51I / 8 Pickering Local History Collection Strategic Plan Final Report — June 15, 2016 PICKER NG NAM LIBRARY Prepared by TCI Management Consultants I Information Management Specialists I -Reich+Petch Architects Inc. 160 Munitions Assembly Line Defense Industries Limited 1943 Pickering Township Council 1929 Pugh Farm Lot 10 Con.9 Pickering Twp. 1877 John Diefenbaker 13th. Prime Minister Cherrywood School Circa 1850 Steam Locomotives Defense Industries Limited 1942 Claremont Band Circa 1920 Spink's Mill Duffin's Creek 1880 Source: Pickering Ajax Digital Archives 161 • TC1 MANAGEMENT. CONSULTANTS 99 Crown's Lane • Toronto 1 Canada • M5R 3P4 • 416-515-0815 Strategic Planners Serving the Heritage, Cultural and Tourism Sectors since 1991 June 15, 2016 Ms. Elaine Bird Director of Support Services Pickering Public Library Administrative Offices One—The Esplanade Pickering, ON L1V 2R6 Dear Ms. Bird: Re: 15 -Year Strategic Plan for Pickering Local History Collection We are pleased to submit our Strategic Plan to you and the members of the project Steering Committee. We believe the accomplishment of the plan will be a significant milestone in implementing the key directions and actions outlined in the City of Pickering's Cultural Strategic Plan as well as the Library's Strategic Plan. It will address an urgent space issue. It will help consolidate and protect Pickering's valuable documentary history as well as improve access to Pickering residents and others interested in Pickering's history. The proposed expansion of the Central Library and development of needed environmentally controlled storage space also presents an opportunity to collaborate and create efficiencies with the City Clerk's department which also is in need of space. We appreciate the cooperation and assistance we have received from your staff as well as the key members of the City Clerk's office, the Pickering Museum Village and the Pickering Township Historical Society who have contributed to the plan's development. We would be pleased to respond to any additional questions you may have. Yours truly, Bruce Fountain Senior Associate, TCI Management Consultants 416-515-7490 - bfountain@consulttci.com cc. G. Young, C. Ardern, J. Linton, W. Petch 162 Pickering Local History Collection Strategic Plan Contents Executive Summary 5 1. Project Background 7 1.1 Pickering Growth Restraints and Implications for Pickering Public Library 7 1.2 Pickering Local History Collection 8 1.3 Pickering's Cultural Strategic Plan 9 1.4 Pickering Public Library Local History RFP Issued and Project Objectives 9 2. Project Approach and Work Undertaken 11 3. The Importance and Role of the Pickering Local History Collection 12 4. Pickering Local History Collection - Current Situation 14 4.1 Current Stakeholders 14 4.2 Summary of Joint Agreements Among All Stakeholders 15 4.3 Proposed Joint Collections Agreement 15 4.4 Collaborative Approach to Development of the Strategic Plan 16 5. Pickering Local History Collection Strategic Plan 17 6. The Pickering Local History Collection and the City of Pickering's Corporate Records Space Requirements 22 6.1 Pickering Local History Collection Space Requirements 22 6.1.1 Pickering Local History Collection Storage Space 22 6.1.2 Pickering Local History Collection Non -Storage Space 23 6.2 City's Corporate Records Space Requirements 25 6.3 Planning for Shared Space 27 6.4 Summary of Future Environmentally Controlled Storage Requirements and Costing 28 Appendix A: Possible Model for a Joint Collections Agreement 31 Appendix B: Storage and Costing Requirements (Detailed) 33 Appendix C: Steering Committee Members and Key Stakeholders 45 Appendix D: Letters of Support from Key Stakeholders 46 4 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 163 Executive Summary The need to develop programs and facilities to house and conserve archival collections has been identified as a priority in the Pickering Cultural Strategic Plan. For some years, the Pickering Local History Collection has been unable to accept materials because it is severely constrained by lack of space. In 2012, the Pickering Public Library identified the need for an expansion of the Central Library including the expansion of the present Local History facilities in response to population and client growth. The purpose of the report is to provide the Pickering Public Library with a clear strategy for: • Total space requirements for the next 15 years for its Pickering Local History Collection • Design and layout of storage, staff and public research space • Proper storage environment including material housing, shelving and HVAC recommendations • Service improvements • Pricing model for all recommendations This report addresses distinct but related issues including, 1) the safer storage of Pickering's historical documents and the City's corporate records in a combined environmentally controlled storage facility, 2) the coming together of Pickering's history story tellers in a new cooperative and collaborative way, 3) an expanded role for the Library in local history matters, and 4) an innovative solution to a joint Library/City problem. Consultation (individual and joint sessions) was undertaken with the other major Pickering local history stakeholders: the Pickering Township Historical Society and the Pickering Museum Village. These conversations quickly indicated a series of shared concerns paramount of which was an immediate need for improved combined storage of the three local history collections because of the risk that human or natural actions could imperil Pickering's historic documentation assets. Beyond the shared storage concerns, the three stakeholder groups all committed to collecting and telling Pickering's stories through various means, and agreed that a coordinated approach to collecting is now required. This has resulted in a proposed Collections Agreement between the three stakeholders regarding future joint efforts. Letters of support for this cooperative concept are provided in Appendix D of this report. All three stakeholders contributed to the development of this strategic plan and agreed to cooperate on future efforts. 5 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 1 64 At the outset of the project, it became clear that the City Clerk's Department is also running out of storage space for its corporate records. Further, the City's corporate records are at various degrees of risk. The consultants met with the City Clerk's office regarding the possibility of storing its corporate records in the proposed Central Library expansion, assuming suitable environmentally controlled space for the City could be included in the project. A prerequisite for the City was that it be given separate controlled access to its portion of the facility. Details of the shared space requirements are contained in this plan and Appendix B. The sharing of environmentally controlled space in the proposed Central Library expansion was supported because 1) the City Clerk is running out of storage space; 2) the facility will provide ready access to City Hall; and 3) cost efficiencies can be created by sharing this space with the Pickering Local History Collection. The City Clerk and the Pickering Local History Collection would each have separate controlled access to its own space and records. Until such time that the Central Library's proposed expansion is approved, there is a need for all four involved parties — The City Clerk [corporate records], The Library's Pickering Local History Collection, the Pickering Township Historical Society and the Pickering Museum Village — to address their short-term documentary storage needs and deficiencies. Options include the use of 1) temporary commercial storage, 2) surplus commercial and office space in the City or 3) surplus City owned or rented space. Off- site storage would ideally be located in the City core area. The strategic plan provides the stepping stones to enable the Pickering Local History Collection to move forward in continued and improved collaboration with its partners - the Pickering Township Historical Society and the Pickering Museum Village. It also outlines how the Local History Collection can grow through participation with and further acquisitions from individuals and business in the community, making their stories and history more accessible both locally and globally. This strategic plan, along with the resources of an expanded Pickering Central Library, will allow the Library to realize the goals of its own Strategic Plan. It will also help realize the Library's vision — to become a focal point in the community to acquire, preserve and make available Pickering's history to the community. It will allow the Library to efficiently and effectively work with its community partners, to expand and house the community's Local History Collection, and to develop innovative programming to share Pickering's heritage to a growing and diverse community. It will also support the City's vision, strategic goals and recommendations as outlined in its Cultural Strategic Plan. 6 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 165 1. Project Background 1.1 Pickering Growth Restraints and Implications for Pickering Public Library Since 1974, lands available for development in the City of Pickering have been limited because of the expropriation and ownership of lands by the Federal Government for a proposed international airport. In conjunction with the proposed airport development the Province of Ontario reserved contingent lands and began planning for. the new community of Seaton in North Pickering. Both projects resulted in substantial reserved lands that limited Pickering's population growth during the past 10 - 20 years compared to adjacent Ajax, Whitby and Markham'. In January 2016, the Province of Ontario announced its intention to sell 1,000 acres of land along the Highway 7/407 corridor to allow for the development of the Seaton Community that when completed will provide homes for 70,000 people and jobs for 35,000 people. The scale and impact of this growth will provide major opportunities as well as challenges for the City of Pickering and the Library system in the decade ahead. In anticipation of this and future projected growth in the community and the resulting increased demands on the Central Library, the Pickering Public Library undertook two studies2 in 2011 and 2012 which addressed expansion and renovation options, including an expanded space for its Local History program. Among the principal recommendations were: • A minimum guideline of 0.6 GSF3 per capita should be adopted to project future library space requirements for the Pickering Public Library. • Following this guideline, the Pickering Public Library should provide a minimum of 135,400 GSF of library space by 2031 to serve a projected population,of 225,670. • The Pickering Public Library will continue to have its Central Library in the downtown core. The Central Library will continue to serve the downtown and surrounding urban areas and provided some specialized services for the entire library system. • In the short term (by at least 2015) the Pickering Public Library should expand the Central Library by a minimum of 10,000 GSF to help address the current 1 The Ajax and Whitby Libraries both have local history collections while Markham has a dedicated museum and associated heritage village on a 25 -acre site 2 Central Library: Expansion•and Renovation Study - Background Report (December 2011) and Central Library: Expansion and Renovation Study— Proposed Expansion Option (March 2012), dmA Planning & Management Services and Chamberlain Architects Services Ltd. 3 GSF = Gross Square Feet - The sum of all areas on all floors of a building included within the outside faces of its exterior walls, including all vertical penetration areas, for circulation and shaft areas that connect one floor to another. 7 TO Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 166 shortfall of library space system -wide to rectify current space limitations at the Central Library and meet some growth related needs. The proposed expansion should be built to accommodate a minimum of two additional levels, should additional library space be required in the future. • That the Local History/Archives existing space allocation (500 SF) be increased to 900 SF for staff and client use, excluding storage. 1.2 Pickering Local History Collection The Pickering Public Library's commitment to a local history program, with the provision of dedicated space (500 SF)4 began in 1990 when the current Central Library opened. The original documentary history collection was transferred from the Pickering Museum Village collection that could no longer store and care for its paper-based collections. The current Pickering Local History Collection now occupies 500 square feet on the second floor of the Central Library. Since the original transfer of historical documents in 1990, the Pickering Museum Village and members of the Pickering community have continued to provide additional materials to the Library's Local History Collection. However, the ability to receive additional materials from the community has been hampered over the past few years as a result of severe space limitations in the Local History Room and staff resources5 to identify and work with potential donors from the community. The Pickering Local History Collection is a unique collection of the community's documentary heritage6, recording the activities of the individuals, organizations and businesses in Pickering. The collection is representative of all forms of media and will evolve as technologies change and digital preservation strategies advance. Because of its professional skills, competencies and mandate, the Library is ideally positioned to take on the major role in expanding the local history service, which to date has been limited due to the lack of resources and a strategic plan. This strategic plan, along with the resources of an expanded Central Library, will allow the Library to realize its vision — to become a focal point in this community to acquire, preserve and make available Pickering's history. It will allow the Library to efficiently and effectively work with its community partners, to develop a plan to expand and house the community's collection, and to develop innovative programming to share Pickering's heritage to a growing and diverse community. a SF= Square Feet 5 The resources allocated to the overall Local History Collection are currently 15 hours per week dedicated to supporting all the activities associated with the program. 6 The documentary heritage may be in the form of audio-visual materials, paper, electronic records, photographs, etc. 8 TCI Management Consultants I Information Management Specialists 1 Reich+Petch Architects 167 1.3 Pickering's Cultural Strategic Plan The Pickering Local History Collection, as proposed in thisplan strongly supports the City of Pickering's Cultural Plan (2014) that sets a vision for the place of arts, culture and heritage in the City and identifies strategic directions for policy, investment, partnerships and programs for the next 10 years. The implementation of the City's Cultural. Plan has six strategic directions including: 1. Broaden and deepen city leadership and investment 2. Build a strong and collaborative cultural sector 3. Strengthen culture -led economic development 4. Conserve and promote history and heritage 5. Celebrate and support diversity and inclusion 6. Cultivate opportunities for the creation, education and enjoyment of the arts Strategic Direction 4 identified in the Cultural Strategic Plan is "to conserve and promote history and heritage"7. The first two recommendations are: 1. Develop programs and facilities to house and conserve archival collections. 2. Strengthen the promotion of local history assets.8 There is a clear commitment to providing archival quality facilities to house collections and to strengthen and promote localhistory efforts between the present heritage stakeholders (Pickering Museum Village, Pickering Township Historical Society and the Library) who have cooperatively interacted for more than 30 years on local history matters. 1.4 Pickering Public Library Local History RFP Issued and Project Objectives In Tight of these developments in November 2015, the Library issued a Request for Proposal for consulting services to complete a 15 -year Strategic Plan for Local History and Archival Services. Early in the planning process, the Project Steering Committee decided to name the Library's local history collection and archival services the "Pickering Local History Collection" which is a term we adopt throughout this report. The purpose of the report is to provide the Library with a clear strategy for: Total space requirements for the next 15 years (local history collection) Pickering Cultural Strategic Plan, p.37. 8 Ibid., p.37. 9 TCI Management Consultants I Information Management Specialists I Reich+Petch Architects 168 • Design and layout of storage, staff and public research space' • Proper storage environment including material housing, shelvingand HVAC recommendations • Service improvements • Pricing model for all recomrnendationslo In January 2016, following a public tendering process, the consulting team of TCI Management Consultants (lead), Information Management Specialists and Reich+Petch Architects Inc. was selected as the project's consultants. The three firms have all collaborated together on other similar projects. In early meetings between the consultants and the Pickering Public Library's project coordination team" it was identified that there had been preliminary conversations regarding the potential for storing the City of Pickering's corporate records in an environmentally controlled storage facility envisioned for the Central Library expansion proposal. This possibility was not identified lathe project's Request for Proposal. Members of the consulting team met with representatives from the City Clerk's department (responsible for corporate records) and confirmed that: • Present City records storage capacity was near its limits • Some of the current City records storage space was potentially "at risk" (e.g. sanitary sewer pipe that runs though one of the storage areas) • As a result, there was interest in an environmentally controlled storage facility which could be shared by both the City Clerk's department and the Pickering Local History Collection. Accordingly, in addition to the objectives set out above, this plan analyzes the volume of environmentally controlled space required to store both the City Records and Pickering Local History Collection with the understanding that each organization would maintain separate, controlled access to its respective collections. There was agreement that a shared environmentally controlled space should be incorporated into the new Central Library expansion proposal. The project period extended from January 2016 to April 2016. 9 As detailed design drawings would be developed by the architect ultimately chosen to design the expanded Central Library, it was agreed that the consultants would focus on assessing the space requirements for the next 15 years and review cost considerations associated with design alternatives. 10 The Steering Committee clarified the focus is on capital costs. 11 See Appendix C for Steering Committee members and Key Stakeholders. 10 TCI Management Consultants I Information Management Specialists I Reich+Petch Architects 169 2. Project Approach and Work Undertaken The Pickering Local History Collection Strategic Plan was developed based on the following activities: • A review of the Pickering Public Library strategic plan and the proposed Central Library expansion reports • A review of the City of Pickering Cultural Strategic Plan • A review of internally developed documentation supporting the expansion of the Local History Collection of the Pickering Public Library • Meetings with the stakeholders that included discussions on ways to collaborate in the collection of archival materials • Meetings with the stakeholders who participated in and contributed to the development of the Pickering Local History Collection's strategic plan • Meetings and workshops with the project Steering Committee and key stakeholders12 in order to determine the volume of their collections that would be included in the Pickering Local History Collection • Meetings with the City Clerk's office to review its future space requirements and ways to collaborate in the storage of archival materials in the expanded Central Library The Strategic Plan was designed and organized into the major operational activities undertaken to manage and make available local history collections. Each activity includes a number of tasks that should be undertaken to achieve the articulated vision and mission statements. Recognizing that there are resource implications and dependencies, the plan has identified: • Activities considered to be high, medium and low priorities • Which activities are dependent on resolution of the current space limitations for acquiring collections The team also calculated the space requirements and associated capital costs required for the next 15 years: • for the City Clerk's office and its corporate records storage space • for the Pickering Local History Collection storage and non -storage space 12 See Appendix C for list of Steering Committee members and key stakeholders. 11 TCI Management Consultants I Information Management Specialists I Reich+Petch Architects 170 3. The Importance and Role of the Pickering Local History Collection "History is not just something that happened long ago and far away. History happens to all of us all the time. Local history brings history home, it touches your life, the life of your family, your neighborhood, your community." --Thomas J. Noel, author and historian Local history is the study of the people, places and events of a particular geographic area. It allows us to study national events within the context of local communities, acts as a source of local pride, and creates an effective way of teaching history to. students. Preserving, understanding, and sharing Pickering's local history will support community building and social development. No matter how different our backgrounds are, we have a shared history through the Community. The Local History Collection is a way to instill pride in our community. It brings history to life, facilitates friendships and bonding between people with a shared interest, and it helps us create a better future by understanding our past, and celebrating our successes and accomplishments. For students and researchers, the Local History Collection documents the impact of societal changes on our community. For residents, it brings history to life and shows how the past has had an impact on their community and present lives. For genealogists, who are tracing back their family's story it may even solve a family mystery. Our Local History Collection supports city planning, local tourism, and economic development. Clients of the Library have provided many positive comments about the value they find in the services of the Local History Collection. • Many homeowners in Pickering have requested information about the history of their homes and neighbourhoods. In addition to brief historical sketches, staff often provides them with historic pictures of their home and neighbourhood. Many have gone on to frame these images and put them on display in their homes and local businesses. • Numerous students, from elementary level to post -graduate, have utilized the collection and research services in order to complete assignments. • City Councillors were thrilled when they were provided with historic images so they could compare historical and current photos to show development and change in their Wards. • Government agencies and business developers have been able to complete environmental assessments ahead of constructions thanks to the resources held in the collection and a number of commemorative signs have been put in place as a result of this research. 12 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 171 • Residents have found missing links in their family tree and people from all over the world have found a link to their ancestors here in Pickering thanks to genealogical records and research. • Through the Local History Collection and services, residents have actively engaged with their history through displays and participation in community events that celebrate Pickering's unique history. These are just some of the examples of how the Local History Collection supports the community. Expanding the scope of the Pickering Local History Collection and services will further benefit the community in similar ways. 13 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 172 4. Pickering Local History Collection - Current Situation 4.1 Current Stakeholders In Pickering there are now four organizations storing local history materials as a result of the lack of storage space in the Local History Room. This leads to public confusion as to "where to go" to get both information for research purposes and make donations of materials to support the telling of Pickering's story These organizations are: • Pickering Public Library's Local History Collection • Pickering Township Historical Society • Pickering Museum Village • The Archives of Ontario Details as to the extent and nature of the four collections and their current depositories are shown below. Organizations Currently Holding Pickering Historical Document Collections Organization Collection . Policy in Place Public Access Space for Additional Materials HVAC Storage Standards for Archival Materials Met Software Records System Other Risks Pickering Local History Collection No Yes, limited No No Yes Pickering Museum Village Yes, for artifacts Yes, limited No No Yes Security System in Collections Storage Room in Administration Building and in off-site storage location; no . wired security system of heritage buildings where artifacts housed in contextual exhibits Pickering Twp. Historical Society None articulated By appointment No No No - Private Home Basement - No Security System Archives of Ontario NA Yes No Yes Yes 14 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 17.3 The Archives of Ontario has indicated that it would like to return the Pickering Township Corporate Records to the Pickering Local History Collection when proper environmentally controlled storage facilities are available. Separate private interviews with the three principal stakeholders involved in local history (excluding the Ontario Archives) demonstrated consensus that the present situation put Pickering's documentary heritage at risk. There was a collective agreement that improvements were needed to ensure the longer-term safety and storage of Pickering's local history collections in the Local History Room. 4.2 Summary of Joint Agreements Among All Stakeholders The three main players involved in the collection of Pickering historical documents agreed that: 1. All shared an immediate problem in that they lacked storage space and this had restricted new collection initiatives 2. All recognized that what they had stored at this time was at various degrees of risk (as reflected in the table above) and none of the storage areas currently meets archival storage standards a. Pickering Public Library has humidity and temperature control issues created by electric base board heaters against collection storage cabinets b. Pickering Township Historical Society collections are largely stored in the basement of a private home with humidity and temperature control issues, space issues, limited documentation and no security system c. Pickering Museum Village has archival material housed in the Collections Storage Room of the Administration Building; this room meets environmental storage standards for artifacts, but not for archival material 3. There is currently very limited coordination in each organization's collection activities 4. In the past there has been duplication of effort directed at acquiring materials from the same potential donors 5. The absence of a shared common collections policy for Pickering produces potential gaps in collection efforts in the longer-term as well as preventing an opportunity for a more coordinated approach to future collection efforts. 4.3 Proposed Joint Collections Agreement In an early joint meeting with the three main players present, it was agreed that it was timely for the Library to be undertaking this strategic plan to address the community's long standing need to address a number of issues with regard to the management and care of its documentary history collections. The consulting team suggested that 15 TCI Management Consultants l Information Management Specialists ( Reich+Petch Architects 174 consideration be given to creating a three party agreement that would jointly address the shared common issues. The consulting team drafted a draft memorandum of understanding on how a joint collections policy might begin to be developed. Some very preliminary joint discussions, facilitated by members of the consulting team, identified the principal areas of cooperation between the three parties. That work has resulted in a draft memorandum of understanding in order to develop a more coordinated approach to collections management for Pickering's local history. This is provided in Appendix A of this report. The new proposed agreement between the three main parties engaged in local history in Pickering promotes better utilization of the documentary historical resources within the Pickering community. It does not diminish the past or future roles of the Pickering Township Historical Society or•the Pickering Museum Village. Rather, it provides a solution that serves the efforts of the three parties and the community at large in the longer term. It was also recognized that the Pickering Museum Village and the Pickering Township Historical Society would like to transfer the materials they are currently holding as soon as possible and they are only inhibited in the transfer by the lack of space in the Pickering Local History Collection facility. The Library agreed to take the lead in determining the available options that might be considered until an environmentally controlled storage facility is available in the new Central Library. All parties agreed that the Library proposal for an archival quality storage facility presented the best storage solution for all in the longer term. 4.4 Collaborative Approach to Development of the Strategic Plan As noted, the parties were supportive of working with the Library to address the community's need to improve the management and care of documentary collections. In addition to the joint collections agreement, the parties agreed that a collections committee be formed in the early days to help coordinate the needs of each party, particularly as they begin to transfer documents to the Pickering Local History Collection. The parties also contributed to the development of the Pickering Local History Collection's strategic plan which follows. 16 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 175 5. Pickering Local History Collection Strategic Plan Expanding the role of the Pickering Local History Collection, as outlined in Section 3, supports the overall mission and vision for the Library. As has been shown in the earlier sections, collecting the documentary history of the community has, over time, evolved to the stage where all stakeholders recognize that there is a need to work together to protect and preserve the community's documentary history for future generations. Collecting and preserving the history of the community involves a number of elements, each of which contributes to the whole. Issues such as what do we collect, how do we manage and preserve it, how is it made available to our community (which could mean the immediate or the global community) and where is it stored and maintained raise issues around financial, physical and human resources. The process of expanding the Pickering Local History Collection is a multi-year activity that has to be incorporated into both the Library and the City's strategic plans. The Strategic Plan following provides a Vision and Mission statement for the Pickering Local History Collection. A series of Action Areas are provided in the left hand column representing the broad areas of activity that the Plan has identified. Within each Action Area are a number of Specific Initiatives (middle column) and a series of Priorities (high, medium and low) in the right hand column. Several dependencies have also been identified which are dependent upon other initiatives first taking place. As with any planning document, this strategic plan reflects a dynamic and evolving process and is subject to input and update on a regular basis to ensure that it addresses changes within the Pickering Public Library and Pickering Local History Collection. 17 TCI Management Consultants I Information Management Specialists I Reich+Petch Architects 176 VISION ACTION AREAS A) Collections PICKERING LOCAL HISTORY COLLECTION STRATEGIC PLAN The Pickering Local History Collection (PLHC) will tell the story of Pickering from its earliest people to today's growing City by collecting, preserving, and making available Pickering's recorded history, to the community. The Pickering Local History Collection collects and makes available a comprehensive history of Pickering, including any records.created today that will be important for generations to come. PLHC primarily;aimsto acquire, conserve, protect, interpret and promote the collection, make the materials available to the public, and support community building through our shared connection to Pickering. SPECIFIC INITIATIVES Al - Develop a joint collections agreement memorandum of understanding regarding the selection and acquisition of community collections to address the concerns of the key stakeholders, PLHC, Pickering Museum Village, Pickering Twp. Historical Society A2 - Develop an Acquisition mandate to support the PLHC A3 — Establish a collections committee with the Museum and Historical Society A4 - Identify gaps in the current collection, identify and contact potential donors/sources A5 - Develop an acquisition strategy including documents and other media which addresses the types of community groups and prominent individuals to be contacted in partnership with the Pickering Township Historical Society and Pickering Museum Village A6 - Acquisition strategy to focus on historical and contemporary materials in all media PRIORITIES :& DEPENDENCIES Al High A2 High A3 High A4 High A5 High A6 High 4 B) Archival Policies and Procedures C) Availability and Accessibility A7 - Repatriate Township of Pickering records from the Archives of Ontario A8 - Arrange to transfer materials from the Pickering Twp. Historical Society and Museum to the PLHC through appropriate donor receipts and documentation B1- Develop a PLHC Collecting policy which includes: authority, purpose, definitions, mandate, roles and responsibilities, to address acquisition, arrangement and description, preservation, access, community education/outreach activities, overall management and administration B2 - Develop procedures which define appraisal process and standards, donor recognition, documentation required to support transfer of ownership, response to and methods for appraising charitable donations and bequests, etc. B3 - Develop a de -accession policy C1- Define digitization standards and acquire appropriate digitization equipment as required C2 - Identify high use collections to be digitized C3 - Identify ways to make the collection more accessible via the web, including use of social media and through collaborative databases which support the library, archives and local history communities C4 - Continue to inventory existing local history materials in the Library and update PastPerfect database C5 - Arrange and describe collections from the Museum when received C6 - Arrange and describe materials from Pickering Township Historical Society when received C7- Incorporate repatriated collections from the Archives of Ontario into the database 19 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects A7 Low — dependent on new storage space with better environmental controls A8 Medium — dependent on an interim storage space B1 High B2 High B3 High C1 Medium C2 Medium C3 High C4 Medium C5 Medium C6 Medium C7 Low y D) Education and Programming y E) Marketing and Outreach 4, F) Partnerships, Organization and Staffing C8 - Include PHLC collections in wider collaborative databases C9 - Ensure research / user-friendly areas in current and new archival facility D1- Explore additional educational and programming activities relating to the collection D2 - Develop on-site and remote educational programs for elementary, secondary and post -secondary school programs D3 - Develop complementary community programming with Museum D4- Identify opportunities to develop relevant community programs through dialogue with organizations such as the Pickering Township Historical Society, the local Genealogical Society, Heritage Pickering and other local heritage groups as required El - Expand or increase web site presence of Pickering Local History Collections E2 - Raise awareness of Local History and Archival Services E3 - Increase outreach with heritage organizations and community organizations E4 - Create articles for local newspapers and media, including use of social media E5 - Participate in local events to promote the history of the area and Pickering Local History Collection E6 - Identify and pursue connections with emerging communities E7 - Create displays and commemorative signage to support collaborative activities (e.g. with Pickering Town Centre) and travelling exhibits F1- Establish advisory committee for PLHC F2 - Develop strategic relationships with key community partners F3 - Formalize relationship with City Clerk's Department regarding roles and responsibilities in responding to information requests F4 - Establish linkages with Museum and heritage organizations including city advisory committees F5 - Review staffing requirements associated with expanded PLHC to address immediate and long-term needs 20 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects C8 High C9 High D1 High D2 Low 4 D3 High D4 High El High E2 High E3 High E4 High E5 High E6 High E7 Medium F1 Medium F2 High F3 Medium F4 High F5 High G) Facilities and Equipment H) Administration and Resourcing F6 - Identify shared service opportunities between PLHC, City of Pickering, Pickering Township Historical Society and the Museum F7 - Review opportunities for additional volunteer resources G1- Initiate/establish interim off-site storage and space arrangements in cooperation with City Records until a new facility can be built G2 - Improve use of current Local History space in short term G3 - Confirm preferred location for interim off-site storage G4- Ensure functional plan for new storage, equipment and operational space for PLHC is included in the expanded Central Library plan and design H1- Develop budget to include resources for implementation H2 - Budget for collections development H3 - Budget line for local history and digitization H4 - Determine budget implications for short term storage and equipment H5 - Review budget implications of future staffing requirements, administration and operations to implement strategic plan H6 - Review budget to support marketing and outreach activities including displays and exhibits 21 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects F6 Medium F7 High G1 High G2 High G3 High G4 Low — Dependent on Central Library Expansion moving forward H1 High H2 Medium H3 -High H4 High H5 High H6 High 6. The Pickering Local History Collection and the City of Pickering's Corporate Records Space Requirements As a result of the storage concerns raised by all parties involved, and the requirement to incorporate the space planning exercise to support the Library expansion plan, the consultants worked with the stakeholders to develop projections for growth. The projections address the needs of both the Pickering Local History Collection and the City Clerk's department for its inactive and permanent records collections for the next 15 years. The projections are estimates, based on today's understanding of the potential growth and should be reviewed as the expansion planning moves forward. The following section outlines the projected space requirements for each party. 6.1 Pickering Local History Collection Space Requirements 6.1.1 Pickering Local History Collection Storage Space As was identified through the interviews with the key stakeholders, the current Pickering Local History Collection space is full and will not allow for transfer of the collections from the Archives of Ontario, the Pickering Museum Village and the Pickering Township Historical Society, as the latter two have space issues themselves. In addition, the types of documentary heritage that is being acquired, requires proper environmental controls to ensure the long term preservation of the collections. While it is difficult to create finite volumes on which to base space projections, the consultants worked with the local history stakeholders and created metrics on which to base the projections for storage space. These metrics were based on past acquisition volumes and knowledge of the Pickering community with regards to prominent families and businesses whose records might be acquired for the Pickering Local History Collection. The projected storage volumes include the centralization of collections currently held by: • The Pickering Township Historical Society • The Pickering Museum Village • The Archives of Ontario In addition, they include ongoing collections growth over the next 15 years as the role of the Pickering Local History Collection increases in the community. Should large collections be acquired as a result of additional program development the volumes could increase and as such, should be monitored on an ongoing basis. In the storage space projections for the Pickering Local History Collection the consultants included a 100 SF workspace in the storage area. 22 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 181 6.1.2 Pickering Local History Collection Non -Storage Space. In addition, the consultants reviewed a list of non -storage spaces that would be required to support the operation of the Pickering Local History Collection with the Steering Committee. These additional spaces include: • Meeting space and program/exhibit space13 • . Collections receiving/holding area close to a loading dock • Cold storage - fridge/freezer space • Reading room/reference desk (in 900 SF currently planned to be on the second floor of the expanded library) • Office/workspace (in 900 SF currently planned for on the second floor of the expanded library) Specific details re: design will be considered as part of the overall planning within the expansion project. The major focus for the space planning exercise was on the need for environmentally controlled storage space for the collections. The consultants assumed that the 900 SF currently designated in the Library Expansion Plan would still be available to the Pickering Local History Collection for office and public access space. 13 Shared with the Library 23 TCI Management Consultants I Information Management Specialists 1 Reich+Petch Architects 182 Pickering Local History Collection Storage Requirements Source Current Projected Comments Archives of Ontario 66 LF (1) n/a 20 metres currently in storage Pickering Museum Village 35 LF Currently held because there is no space at the Library Pickering Museum Village 150 LF 10 boxes per year @ 15 years, however if collecting process is developed and applied, this may go directly to Pickering Local History Collection Pickering Township Historical Society 170 LF Includes 100 boxes from Local History Society, approximately 60 LF from John Sabean personally + 6 - 8 boxes Pickering Township Historical Society 750 LF Calculations based on discussions with PTHS at 10 families donating 5 boxes per year. 50 X 15 = 750. Subject to future review for validation. Pickering Local History Collection 300 LF These volumes are based on current space and moving some items to storage. Pickering Local History Collection 200 LF 1p F Projected'ostorage area: o, E 00 Space requirements for storage Net Square Footage approximately 700 SF based on - 9 high shelving units - 3 boxes per shelf - 8 bays - 3 foot aisles plus 100 SF work space Gross square footage for pricing: 840 SF If shelves are higher/lower need to recalculate If mobile shelving is used space savings are about 40% Receiving/holding area close to dock Space freed up by City Records can be used as holding area Cold storage - fridge/freezer To be accommodated in storage area Reading room with reference desk/workspace Assume 900 SF in library expansion plan will be used Note: (1) LF is Linear Feet 24 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 6.2 City's Corporate Records Space Requirements In addition to the needs of the parties involved in collecting the community's documentary history, a major consideration for moving forward is resolution of the storage issues which are faced by both the Pickering Local History Collection and the City Clerk's Department. A key component of the planning process is ensuring that appropriate facilities are available to store those records having longterm value to both the Library and the City Clerk's office. The following section looks at the storage issues and potential solutions within the expanded Library facility. This section of the report focuses on identifying the storage requirements of the Pickering Local History Collection and the City's Corporate Records. The City Clerk is responsible for the oversight of the City's records and does, through the Records Management Bylaw, apply retention schedules to manage both paper and electronic records in the City. At present, the City's storage rooms are close to capacity and are not environmentally controlled, posing a risk to those long terms records which are stored for the life of the municipality. When initial discussions regarding the library expansion were proposed, discussions between the Library and the City Records department led to consideration of the City having an environmentally controlled storage space, for which it would be responsible, in part of the newly expanded storage area in the library. The cost to build such a purpose built space would be more economical as part of the overall expansion project than as a separate facility, resulting in more cost effective expenditure of the taxpayers' money. The project team met with the representatives from the City Clerk's department to discuss options for the facility. The storage projections provided were calculated based on current volumes received and disposed of, with an understanding that the City will not be totally electronic within the 15 years projected in the planning exercise. The consultants worked with the members of the City Clerk's staff responsible for corporate records and developed a 15 -year projection of the required storage space to meet its requirements. The City's summary storage requirements for 2016 and 15 years' future are as follows: 25 TCI Management Consultants I Information Management Specialists I Reich+Petch Architects 184 Storage Volumes for the City Records Area Collection Current Projected Calculations Based on: City Permanent Collection 660 LF (1) 600 LF Past three years' average transfer of 40 boxes per year x 15 years. Assuming offices have culled and are not holding boxes for transfer. Also assuming that departments which have permanent records and are keeping them will not run out of space and will continue to store records. If not, this number will increase Total Permanent 1,260 LF City Inactive (2) Records 750 LF 600 LF Increase based on average difference of 40 boxes between intake and destruction. More boxes coming in annually than going out for destruction. Assuming offices have culled and are not holding boxes for transfer. Also assuming that departments which have permanent records and are keeping them will not run out of space and will continue to store records. If not, this number will increase. As more records are created and stored electronically this volume will go down Total inactive 1,350 LF Total active and inactive 2,610 LF Additional Allowance for Seaton Development and Pickering Growth (3) 440 LF a'Mboxes to be,store 3050 LF Net Storage Square Footage estimate approximately 1150 SF based on - 9 high shelving units - 3 boxes per shelf - 8 bays - 3 foot aisles plus -100 SF work space Gross square footage for pricing 1380 sf If shelves are higher/lower need to recalculate If mobile shelving is used space savings are about 40% Notes: (1) LF is Linear Feet (2) inactive records are those which are disposed on a regular basis in accordance with the retention bylaw (3) based on discussion with the City Clerk's department to incorporate projected development and growth of Seaton, Pickering and records management initiatives with the City of Pickering. 26 TCI Management Consultants I Information Management Specialists I Reich+Petch Architects 6.3 Planning for Shared Space There are logical reasons, synergies and potential savings in having the Library and the City come together to develop a shared solution for each organization's need to provide acceptable environmentally controlled storage requirements. Among these reasons are the following, • Both the Central Library and the Pickering City Clerk's Corporate Record function are located on a shared site in the city's core area, which meets the City's Records Management requirement for ready access to its records. • The Library is proposing an expansion of the present Central Library by approximately 17,000 SF. • Within the proposed expansion of the Central Library, a shared space of between 1,500 SF to 2,200 SF14 could be incorporated into the design for a specially designed but self-contained storage facility with features meeting archival standards and with separate access available to each organization. This could be located either in the basement or on the first floor15. • Compared to the costs and inefficiencies of developing two separate environmentally controlled storage facilities, it was agreed that having a single purpose built environmentally controlled storage space would benefit both the City and the Library in the longer term. • Despite the impact of technology on the creation of records and information, the potential holdings which will be transferred to the Pickering Local History Collection will continue to be paper-based for some years to come. Digitization of the collections will enhance the access and availability to potential researchers. However, the intrinsic value of the archival material will continue to be in the original form, so both the original and digital versions will need to be maintained. • Discussions with the City Clerk's office indicate that paper records will continue to be created over the next 15 years. As new initiatives have an impact on overall records management, the storage requirements will have to be reviewed on an ongoing basis. 14 Space calculations are shown in Section 6.4 and Appendix B. 15 Weight bearing considerations plus possible wet soil conditions in the area. 27 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 186 6.4 Summary of Future. Environmentally Controlled Storage Requirements and. Costing The consultants assessed the space and related costs associated with two different space and design scenarios, the first involving fixed shelving and the second involving mobile shelving16. The proposed space would provide the Pickering Local History Collection and the City Records Management group with sufficient environmentally controlled space17 for the next 15 years18. While mobile shelving has a higher cost per square foot, their compact nature means that a smaller footprint is required, thereby bringing total costs down. Costs are shown assuming 9 foot high shelving units for both a "high end" and "mid- range" design solutions and two different levels of environmental controls within the storage area. The high end solution includes a purpose built envelope around the storage area with its own HVAC19 unit separate from the rest of the building. The mid- range solution would have a purpose-built envelope but would use individual air conditioners and dehumidifiers to control temperature and humidity. Costing for each would vary based on the level of investment in HVAC, partitions, walls and shelving solutions adopted. Costing metrics for the fixed and mobile shelving options20 are outlined below. 16 The detailed calculations are shown in Appendix B. 17 It is important to control temperature and humidity in the storage space because large fluctuations in either results in damage to the paper records and shortens the life of items in the collection. 18 barring the arrival of a large unanticipated documentary collection 19 Heating, ventilation and air conditioning 20 It is assumed the base building costs are covered as part of the library's expansion costs and therefore the costs below do not include the base building costs. 28 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 187 Fixed Shelving Costing Metrics: High end: $300 - $350/Square Foot (SF) (2016 $) Mid-range: $150 - $175/SF (2016 $) Mobile Shelving Costing Metrics High end: $350 - $400/SF (2016 $) Mid-range: $200 - $225/SF (2016 $) Environmentally Controlled Storage Requirements and Costing Matrix Note: The high end solution includes a purpose built envelope around the storage area with its own HVAC unit separate from the rest of the building. The mid-range solution would have a purpose-built envelope but would use individual air conditioners and dehumidifiers to control temperature and humidity. 29 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 188 Pickering Local History Collection City Records Total Fixed Shelving Gross Square Feet (GSF) required 840 1,380 2,220 High end cost • $252,000 - $294,000 $414,000 - $483,000 $666,000 - $777,000 Mid-range cost $126,000 - $147,000 $207,000 - $241,500 $333,000 - $388,500 Mobile Shelving ----------- --------- Gross Square Feet (GSF) required 550 900 1,450 High end cost $192,500 - $220,000. $315,000 - $360,000 $412,500 - $580,000 Mid-range cost $110,000 - $123,750 $180,000 - $202,500 $290,000 - $326,250 Note: The high end solution includes a purpose built envelope around the storage area with its own HVAC unit separate from the rest of the building. The mid-range solution would have a purpose-built envelope but would use individual air conditioners and dehumidifiers to control temperature and humidity. 29 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 188 ............................... HI1111'. 11 rtrtr tuil 41111 H IHIu hHn�IIIN�6 Vim i�lH�nl 1 ,I I 1''11I ; 11 k lilll ;111 �I Hi l III ill � ryui�wl m,� lir II'ry III;I0Hryr H'[ I 'J1IIIHJINh'lhOI"iIh' mm HNmidHHH� Frenchman's Bay J. Landymore Pickering Township Historical Society on Loan to Pickering Public Library Appendix A. Possible Model fora Joint Collections Agreement B. Storage and Costing Requirements (Detailed) • Pickering Local History Collection • Corporate Records C. Project Steering Committee and Key Stakeholders D. Letters of Support from Key Stakeholders 30 TCI Management Consultants I Information Management Specialists 1 Reich+Petch Architects 189 Appendix A: Possible Model for a Joint Collections Agreement PICKERING LOCAL HISTORY OVERSIGHT AGREEMENT This Agreement ("the Agreement"), entered into on this day of 2016, ("Effective Date") by and between the undersigned, duly authorized representatives of the Pickering Local History Collection (PLHC) the Pickering Township Historical Society (PTHS) the Pickering Museum Village (PMV) does hereby declare and state as follows: WHEREAS, the Library (PPL) is the designated repository for the PLHC21, and agrees to collaborate with PTHS and PMV and other organizations as described below to ensure the acquisition, preservation and availability of the Pickering Local History Collection: NOW, THEREFORE, in consideration of the mutual interests of all the parties, it is agreed by and between the parties as follows: Vision The Pickering Local History Collection (PLHC) will tell the story of Pickering from its earliest people to today's growing City by collecting, preserving, and making available Pickering's recorded history to the community. Mission The Pickering Local History Collection collects and makes available a comprehensive history of Pickering, including any records created today that will be important for generations to come. PLHC primarily aims to acquire, conserve, protect, interpret and promote the collection, make the materials available to the public, and support community building through our shared connection to Pickering. Acquisition and Collecting: PPL staff will work with PTHS and PMV to: • identify organizations and individuals whose records are of potential interest to the Pickering Local History Collection • Work together to determine who will make contact regarding the Pickering Local History Collection and when, as appropriate. 21 regardless of who receives and/or collects materials 31 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 190 • Ensure that where the collection includes artifacts and artwork, decisions are made regarding the appropriate repository based on collecting mandates of each institution22 • Ensure that appropriate donor information is completed using approved documentation from PLHC to capture details about such issues as copyright, access and use restrictions, etc. Arrangement and Description: PPL staff will ensure that the collections are arranged and described in accordance with accepted archival practices, respecting original order where appropriate, given the nature of the collections Availability and Access23 : PPL staff will make the collections available • through the Local History Room in the Library • through the Internet where appropriate By: By: Printed name: Title: Etc. 22 Which organization has the mandate to collect, in order to avoid competition/duplication 23 Assumption that there is a full-time staff person dedicated to the Pickering Local History Collection 32 TCI Management Consultants I Information Management Specialists I Reich+Petch Architects 191 Appendix B: Storage and Costing Requirements (Detailed) 33 TCI Management Consultants I Information Management Specialists 1 Reich+Petch Architects 192 i 11,4L ivz 0.40 I Strategic Plan for Local History & Archival Services Pickering Public Central Library TCI MANAGEMENT CONSULTANTS LNFor\LA.TIo\ Ma' A.GEN/ N'T.. SPL• C'I 1LISTS 34 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects a Space Costing for Storage for Pickering Local History Collection + City Records ikssumpiions: 1 Basement can be constructed to address potential water table problems 2. Storage areas will be in the basement based.on ability to address water issues 3. If water issues cannot be addressed, storage could be accommodated on first floor, with the same costing model 4. If storage has to be accommodated on second or third floors, per square foot costs will be higher. 35 TCI Management Consultants 1 Information Management Specialists 1 Reich+fetch Architects Two Storage and Pricing Models Presented • Square footage and costs • Square footage and costs for fixed shelving for mobile shelving 36 TCI Management Consultants I Information Management Specialists I Reich+Petch Architects Costing Metrics Fixed Shelving Class "A" facility a inclusive cost per sq. ft.(SF): $600/SI Assumption: Base building costscovered as part of librar' expansion costs reduce the per SF cost Class "A", High end: purpose - HVAC, fixed shelving: $300 - ilt envelope with separate Mid-range: using unit air conditioners and dehumidifiers fixed shelving: $150 - $175/SF (2016 $) 37 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects Projected Storage Costs (Fixed Shelving) Pickering Local History Collection et.storage space p ojections Gross storage space projections circulation etc.) 840 SF High-end: $252,000 - Mid-range. $126,000 - $147 • Using fixed shelving 38 TCI Management Consultants I Information Management Specialists 1 Reich+Petch Architects Projected Storage Costs (Fixed Shelving) City Records Space Net storage projection Gross storage projection etc.): 1,380 SF es circulafi Cost • High-end: $414,000 Mid-range. $207,000 $2! • Using fixed shelving 39 TCI Management Consultants Information Management Specialists Reich+Petch Architects Costing Metrics Using Mobile Shelving Class "A" facility all inclusive c Assumption: Base building :costs covered as part of Iibrar expansion costs reduce the SF cost Class "A", High end: Purpose-built envelope! HVAC, mobile shelving: $350 - $4.00/SF (2011 Mid-range: using unit air conditioners and dE mobile shelving: $200 - $225/SF ara umidifiers_ 40 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects Costing Metrics Using Mobile Shelving Class "A" facility all inclusive cost per sq. ft. $600 /SF (Assumption: Base building costs covered as part of library expansion costs reduce the SF cost Class "A", High end: purpose-built envelope with separate HVAC, mobile shelving: $350 - $400/SF (2016 $) Mid-range: using unit air conditioners and dehumidifiers, mobile shelving: $200 - $225/SF (2016 $) 41 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects Projected Storage Costs (Mobile Shelving) Pickering Local History Collection Gross storage space pi o� ac circulation etc.) based on approx. 550 SF High-end: $192,500 Mid-range: $110,000 - $12 • Using mobile shelving 42 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects Projected Storage Costs (Mobile Shelving) City Records Space Gross storage projection etc.) based on 35% less space: approx. 900 SF ides circulation, Cost • High-end: $315,000 Mid-range: $180,000 $2 • Using mobile shelving 43 TCI Management Consultants I Information Management Specialists 1 Reich+Petch Architects Summary Storage Requirements and Costs (2016 $) o al Histor Collection isioin Cit Records octad Fixed Shelving GSF High end $/SF Mid range $/SF Total Cost High end Mid range Mobile Shelving GSF High end $/SF Mid range $/SF Total Cost High end Mid range 840 $300 - $350 $150 - $175 1,380 $300 - $350 $150 - $175 $252,000 - $294,000 $414,000 - $483,000 $126,000 - $147,000 $207,000 - $241,500 550 $350 - $400 $200 - $225 900 $350 - $400 $200 - $225 $192,500 - $220,000 $315,000 - $360,000 $110,000 - $123,750 $180,000 - $202,500 44 TCI Management Consultants l Information Management Specialists ( Reich+Petch Architects 2,220 $300 - $350 $150 - $175 $666,000 - $777,000 $333,000 - $388,500 1,450 $350 - $400 $200 - $225 $412,500 - $580,000 $290,000 - $326,250 Appendix C: Steering Committee Members and Key Stakeholders Steering Committee Members 1) Elaine Bird — Director of Support Services, Pickering Public Library • 905-831-6265 ext. 6231 • elaineb@picnet.org 2) Carolyn von Hasselbach — Manager of Collections, Pickering Public Library • 905-831-6265 ext. 6232 • carolynv@picnet.org 3) Becky George — Local History & Genealogy Librarian, Pickering Public Library • 905-831-6265 ext. 6240 • beckyg@picnet.org Key Stakeholders 1) Cathy Grant — CEO, Pickering Public Library • 905-831-6265 ext. 6236 • cathyg@picnet.org 2) Paul Bigioni — Director, Corporate Services & City Solicitor, City of Pickering • 905-420-2222 ext.2048 • pbigioni@pickering.ca 3) Debbie Shields — City Clerk, City of Pickering • 905-420-2222 ext. 2019 • dshields@pickering.ca 4) Lisa Harker — Deputy Clerk, City of Pickering • 905-420-2222 ext. 2153 • Iharker@pickering.ca 5) Renee Michaud - Coordinator, Records & Elections, Corporate Services Department, City of Pickering • 905.420.4660 ext. 2097 • rmichaud@pickering.ca 6) Katrina Pyke — Coordinator Museum Operations, City of Pickering • 905-420-2222 ext. 3714 •. kpyke@pickering.ca 7) John Sabean — President, Pickering Township Historical Society • 905-831-3811 • iohnsabean88@gmail.com 45 TO Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 204 Appendix D: Letters of Support from Key Stakeholders Pickering Museum Village Pickering Township Historical Society City Clerk 46 TCI Management Consultants 1 Information Management Specialists 1 Reich+Petch Architects 205 Culture & Recreation Department June 13, 2016 To Whom It May Concern Subject: Pickering Local History Collection Strategic Plan File: S-3060-001-16 Pickering Museum Village would like to express its strong support for the Pickering Public Library's Local History Collection Strategic Plan. Pickering Museum Village is a vibrant living history museum with 19 heritage buildings on 27 acres of land, and a collection of over 10,000 artifacts. The. Museum's purpose is to collect, preserve, document, house, exhibit, and interpret material culture; research and document historical information supporting the community's material and social culture; and develop programs responsive to the needs of the community. The Local History Collection Strategic Plan aspires to expand the Library's ability to collect, store, preserve, interpret, and make accessible to the public Pickering's recorded history. The goals of this plan align with those of the Pickering Museum Village, and with the City of Pickering's Cultural Strategic Plan. The Pickering Museum Village was consulted extensively in the development of the Local History Collection Strategic Plan, and we believe that the directions and objectives proposed within the plan will benefit the entire community. Museum staff look frequently to the Local History Collection when researching artifacts, and developing programs and exhibits. This plan will lead to a more collaborative approach to the interpretation of our community's heritage, bringing both the Local History Collection and the Pickering Museum Village's artifact collection in stronger alignment and inter -relation. We look forward to working with the Library as they work through the plan, and further develop their heritage service to the public. Yours truly Katrina Pyke, M.A. Coordinator, Museum Operations KP:eb Copy: Director, Culture & Recreation Supervisor, Cultural Services Pickering Civic Complex I One The Esplanade 1 Pickering, Ontario L1 V 6K7 I T. 905.683.8401 206 F. 905.686.4079 1 TTY 905.420.1739 I Toll Free 1.866.683.2760 I museumapickering.ca 1 pickering.ca r' \ 'rI"'�� tl11I LF fir.flnin:r) Fp June 13, 2016 To Whom It May Concern: Re: Pickering Local History Collection Strategic Plan As a contributing member, the Pickering Township Historical Society strongly supports the Pickering Public Library's History Collection Strategic Plan. The plan aspires to expand the Library's ability to collect, store, preserve and make available Pickering's recorded history to the community. Since our organization is very much involved in the collection of historic materials, materials that it then turns over to the library, this goal corresponds well with our own goals. As the library's plan developed we were consulted extensively and participated in the planning sessions themselves. This plan, we strongly believe, will be of great benefit to the community, and we intend to work closely with the library as the plan unfolds. Regards, 1\4.,t John W. Sabean, PhD, OMC President, Pickering Township Historical Society 928 Reytan Blvd. PICKERING, ON L1W 1Y7 905.831.3811 jphnsabean88@gmail.com 207 Corporate Services Department Legislative Services June 7, 2016 Cathy Grant, CEO Pickering Public Library Subject: Pickering Public Library — Local History Collection Strategic Plan - Letter of Support File: A-3500 It is my pleasure to write a letter of support for the Local History Collection Strategic Plan. As the City Clerk, I play a leading role in ensuring the City's records are retained and preserved in a secure and accessible manner. The Clerk's Office manages the City's two archive locations, which collectively contain approximately 1,300 boxes of records. Both archive locations are currently at capacity,, and they are not optimal conditions for document storage. This project aligns with our Records Management objectives to provide a secure archive space for our records. Proximity to our current offices, adequate storage space, and a temperature -controlled environment are just a few of the elements of this project that we value. Moving ahead with the Local History Collection Strategic Plan is undoubtedly a priority for the Clerk's Office due to our current limited storage space, and to provide a safe, long-term solution for the City's vital documents. The Clerk's Office looks forward to collaborating with you on this project. Yours truly 11 Debbie Shields City Clerk DS:Ih Enclosure Copy:. Director, Corporate Services & City Solicitor] 208 Pickering Civic Complex 1 One The Esplanade 1 Pickering, Ontario L1V 6K7 1 T. 905.420.4611 905,420.9685 1 TTY 905.420.1739 1 Toll Free 1.866.683.2760 1 clerks@pickering.ca 1 pickering.ca C/ �f DICKERING Report to Executive Committee Report Number: CS 24-18 Date: June 18, 2018 From: Marisa Carpino Director, Community Services Subject: Community Association Lease Agreements - Tennis Clubs - File: A-1440 Recommendation: 1. That the Mayor and City Clerk be authorized to execute the Lease Agreement with Amberlea Tennis Club set out in Attachment 1 to this report, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor; 2. That the Mayor and City Clerk be authorized to execute the Lease Agreement with Dunmoore Tennis Club set out in Attachment 2 to this report, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor; 3. That the Mayor and City Clerk be authorized to execute the Lease Agreement with Rosebank Tennis Club set out in Attachment 3 to this report, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor; and 4. That the appropriate City officials be authorized to take the necessary actions as indicated in this report. Executive Summary: On April 22, 2014, Council approved Resolution #224/14 authorizing staff to prepare written facility agreements with various community associations regarding exclusive and/or regular use of City owned facilities; with each such agreement to be brought back to Council for consideration and approval. As such, staff have prepared five year lease agreements with Amberlea Tennis Club for their exclusive use of the two tennis courts, practice area and a storage facility at Shadybrook Park; Dunmoore Tennis Club for their exclusive use of the four tennis courts, practice area and a storage room within the washroom facility at Dunmoore Park; and, Rosebank Tennis Club for their exclusive use of the two tennis courts at Rick Hull Memorial Park. The Community Services Department recommends that each of the lease agreements included as Attachments 1, 2 and 3 be initiated for a five year term beginning July 1, 2018 and ending June 30, 2023. 209 CS 24-18 June 18, 2018 Subject: Tennis Club Lease Agreements Page 2 Financial Implications: The City of Pickering is responsible to fund the general operating costs (such as utilities, garbage removal, maintenance and cleaning) of the courts within these City parks which are reflected annually within the Community Services Department's Current Budget (cost centre 2718). The City is also responsible for the capital costs to resurface or reconstruct these municipally owned tennis courts which vary year-to-year depending on need. For instance, Rosebank Tennis courts are scheduled to be reconstructed later this year as per the 2018 approved Capital Budget. Each of the aforementioned Tennis Clubs are responsible to fund the day-to-day costs to operate the Club, which includes program/officesupplies, administrative and insurance costs. The Clubs are also responsible to supply, maintain, repair and/or replace furniture, appliances and equipment at its expense, in order to operate its activities. The Club shall pay annual charges for hydro use to the City for each of the tennis courts on site as per the City's General Municipal Fees By-law. Discussion: Amberlea Tennis Club, Dunmoore Tennis Club and Rosebank Tennis Club offer a wide variety of leagues, events, lessons and community outreach programs for adults and juniors at all skill, levels. Recently, these tennis clubs have dedicated significant time and effort into developing youth tennis programing. To date, these tennis clubs have operated their activities exclusively from activity and storage rooms located the aforementioned parks under a verbal agreement with the City of Pickering. During this time, all the Clubs have operated their activities in a diligent and conscientious manner that has satisfied the City. The City of Pickering offers two tennis courts that are available to the general public at no cost and they are located at Village East Park and Claremont Park. The City's recently approved Recreation and Parks Master Plan recommends that we explore potential amalgamation of tennis clubs and the consolidation of court supply so more courts are available to the general public at no cost. That said, Amberlea Tennis Club, Dunmoore Tennis Club and Rosebank Tennis Club are very active clubs with significant memberships and as such were not among those recommended for consideration in the Master Plan. As per Council Resolution #224/14, City staff have prepared written Lease Agreements to document these longstanding verbal agreements. As per the terms and conditions of the attached written agreements, the Tennis Clubs shall use the premises for non-profit, charity events or non- commercial receptions of the Clubs, at their costs. The Tennis Clubs will also maintain insurance in the amount of two million dollars. The City is responsible for all day-to-day operating expenses of the respective parks including garbage removal and regular maintenance. The City is also responsible for the capital replacement costs of the perimeter fencing, lighting and the courts surfacing. The Community Services Department recommends that the Lease Agreements included as Attachment 1 to 3 be initiated for a five year term beginning July 1, 2018 and ending June 30, 2023. 210 CS 24-1B June 18, 2018 Subject: Tennis Club Lease Agreements Page 3 Attachment: 1 Draft Lease Agreement with Amberlea Tennis Club 2. Draft Lease Agreement with Dunmoore Tennis Club 3. Draft Lease Agreement with Rosebank Tennis Club Rob Gagen Supervisor, Parks Operations RG Approved/Endorsed By: Maris. arpino Director, Community Services Recommended for the consideration of Pickering City Council Tony Preve• el, ' .Eng, Chief Administrative Officer CORP0227-07101 revised 211 ATTACHMENT # TO REPORT # C �? 1 1 Lease Agreement This Lease is made as of the 151 day of July, 2018. Between: The Corporation of the City of Pickering (the "City") -and - Amberlea Tennis Club (the "Club") Article I Interpretation Definitions 1. In this Lease, (a) "Commencement Date" means July 1, 2018; (b) (c) "Lease" means this lease as it may be amended from time to time; "Premises" means that portion of the two tennis courts, practice area, storage bunkers, within Shadybrook Park therein as shown on Schedule "A" attached hereto, located at 1905 Shadybrook Drive, in the City of Pickering, Regional Municipality of Durham; (d) "Rent" means the rent payable pursuant to Section 19; and (e) "Term" means the term of this Lease as set out in Section 15, 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. 212 2 Severability 3. 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 4. 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 5. This Lease shall be governed by, and interpreted and enforced in accordance with, the laws in force in the Province of Ontario. Entire Agreement 6. 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 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. The club acknowledges its right to use the seasonal, portable washrooms facilities is non-exclusive. Club Use of Premises 8. The Premises shall be used only for non-profit tennis club, at its expense and for no other purpose without the prior written consent of the City. Nuisance 9. . 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 or other users of Shadybrook Park. 213 3 City Use of Premises 10. Subject to section 8, the City shall have right of first 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 11. 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 12. The Club may not grant licences to use the Premises. 13. The Club shall submit their annual financial statement to the City by December 1St of each year. 14. The Club shall submit a list of the Club Board of Directors and their contact information to the City by December 1st of each year. Article III Term Term 15. The term of this Lease shall be five (5) years from the Commencement Date to June 30, 2023. 16. The City may terminate this Lease at any time for any reason provided it has given the Club six (6) months prior notice in writing. 17. The Club may terminate this Lease at any time for any reason provided it has given the Club six (6) months prior notice in writing. Overholding 18. 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. 214 4 Article IV Rent Rent 19. The Club shall pay to the City as rent for the entire the Term in lawful money of Canada the sum of One (1) Dollar ($1.00) Utilities 20. The club shall pay annual charges to the City for each of the tennis courts on site for hydro use. This amount shall be paid on or before April 1 in each year of the term. Annual charges are subject to The General Municipal Fees By-law . Gross Lease 21. 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 22. The Club shall maintain and operate the Premises so that they shall always be of good appearance, safe and suitable for the proper operation of the Premises. 23. The Club shall provide general maintenance services to the Premises at its expense and shall provide all necessary cleaning and maintenance supplies and cleaning equipment related to the courts and any associated building under their exclusive use. The Club, at its sole expense shall provide the court nets and any shade screening. This would include installation, removal and storage each year. 24. The City or its designate, shall be responsible for all day-to-day operating expenses including garbage removal, bleachers, benches, fencing, any building associated with use of the courts, lighting and the court surface life cycle replacement. 25. 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. 215 5 26. The Club shall immediately notify the City of any unsafe conditions on the Premises. Security 27. The Club shall be responsible for the gate lock and shall ensure that the gate is properly locked at the end of each day during the tennis season. The Club will ensure that any key or combination to any lock are provided to the City for maintenance and inspection access. Alterations/Improvements to Premises 28. The Club shall only be permitted to make alterations and improvements to the Premises that have been approved by the City. Article VI Insurance and Indemnity Club's Insurance 29. 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. 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. 30. 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. 31. 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. 216 6 Insurance Risks 32. 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 33. 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. Article VII Remedies on Default City's Right to Re -Enter 34. 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 thereafterto re-enter the Premises. City's Right to Remedy Default 35. 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 of ten (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. 217 7 Waiver 36. 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. Article VIII Miscellaneous Quiet Enjoyment 37. 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 38. The Club agrees to permit the City and authorized representatives of the City to enter the Premises during normal business hours or in an emergency for the purpose of inspecting and or maintaining 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 39. 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. Compliance with Laws 40. The Club, at its sole cost and expense, shall comply with all legal 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 41. Any notice required to be given by the City to the Club under this Lease shall be in writing and shall be delivered to or such other address of which the Club has 218 notified the City in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Lease. 42. 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 43. 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 44. Schedules "A" 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 Amberlea Tennis Club Rosemary Aiken, President Sue Peschke, Secretary 219 SOCCER PTCH (JR_) PRECAST _ PORT BUNKERS - LJG IT (1) SPORT .PORT LIGHT = LIGHT (3) _ (2) JR. & SR. — PLAY AREA 4 VITA 0 SWtNC BENCH SOCCER PTCI -I (JR.) ASPHALT PATH /2 GARB. CBri GARB. oCAN CONCRETE PATH 1111••=•••••• SCI.EDIULE'A' PM OM. 1•11:1r AlLai SHAOYBROOOK PARK P-014 9€ET 1 OF 1 AI'1ACHMENT# t TOIiEPDRT# cI? I 1 Lease Agreement This Lease is made as of the 1st day of July, 2018. Between: Definitions 1. In this Lease, (a) The Corporation of the City of Pickering (the "City") - and - Dunmoore Tennis Club (the "Club") Article I Interpretation "Commencement Date" means July 1, 2018; (b) "Lease" means this lease as it may be amended from time to time; (c) "Premises" means that portion of the four tennis courts, within Dunmoore Park therein as shown on Schedule 'A" attached hereto, located at 680 Callahan Street, in the City of Pickering, Regional Municipality of Durham; (d) "Rent" means the rent payable pursuant to Section 18; and (e) "Term" means the term of this Lease as set out in Section 15, 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. 221 Severability 3. 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 4. 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 5. This Lease shall be governed by, and interpreted and enforced in accordance with, the laws in force in the Province of Ontario. Entire Agreement 6. 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. Article II Grant and Use Grant 7. Inconsideration 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. The club acknowledges its right to use the washrooms facilities is non-exclusive. Club Use of Premises 8. The Premises shall be used only for non-profit tennis club, at its expense and for no other purpose without the prior written consent of the City. Nuisance 9. 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 or other users of Dunmoore Park. 222 3 City Use of Premises 10. Subject to section 9, the City shall have right of first 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 11. 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 12. The Club may not grant licences to use the Premises. 13. The Club shall submit their annual financial statement to the City by Novemberl st of each year. 14. The Club shall submit a list of the Club Board of Directors and their contact information to the City by November 1st of each year. Article III Term Term 15. The term of this Lease shall be five (5) years from the Commencement Date to June 30, 2023. 16. The City may terminate this Lease at any time for any reason provided it has given the Club six (6) months prior notice in writing. Overholding 17. 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. 223 Article IV Rent Rent 18. The Club shall pay to the City as rent for the entire the Term in lawful money of Canada the sum of One (1) Dollar ($1.00) Utilities 19. The club shall annual charges to the City for each of the tennis courts on site for hydro use. This amount shall be paid on or before April 1 in each year of the term. Annual charges are subject to The General Municipal Fees By-law . Gross Lease 20. 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 21. The Club shall maintain and operate the Premises so that they shall always be of good appearance, safe and suitable for the proper operation of the Premises. 22. 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 related to the courts and any associated building under their exclusive use. 23. The Club, at its sole expense shall provide the court nets and any shade screening. This would include installation, removal and storage each year. 24. The City or its designate, shall be responsible for all day-to-day operating expenses including garbage removal, bleachers, benches, fencing, plumbing, any building associated with use of the courts, lighting and the court surface life cycle replacement. 25. 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 224 5 expense of any repairs including the City's reasonable administration charge necessitated by such negligence or misuse. 26. The Club shall immediately notify the City of any unsafe conditions on the Premises. Security 27. The Club shall be responsible for the security of the Premises. The Club will ensure that a key or combination to any lock are provided to the City for maintenance and inspection access. Alterations/Improvements to Premises 28. The Club shall only be permitted to make alterations and improvements to the Premises that have been approved by the City. Article VI Insurance and Indemnity Club's Insurance 29. 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. 30. 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. 225 31. 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 32. 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 33. 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. Article VII Remedies on Default City's Right to Re -Enter 34. 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. City's Right to Remedy Default 35. 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 of ten (10) days after receipt of notice by the Club (or 226 7 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 36. 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. Article VIII Miscellaneous Quiet Enjoyment 37. 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 38. The Club agrees to permit the City and authorized representatives of the City to enter the Premises during normal business hours or in an emergency for the purpose of inspecting and or maintaining 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 39. 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. 227 8 Compliance with Laws 40. The Club, at its sole cost and expense, shall comply with all legal 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 41. Any notice required to be given by the City to the Club under this Lease shall be in writing and shall be delivered to 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. 42. 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 43. 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 44... Schedules "A" 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 228 9 Dunmoore Tennis Club Craig Rowsell, President Debbie Woods, Secretary 229 JR. &SR. PLAY AREA WITH WANG GARB. .GAN CPARKIMG ASPHALT L[1T 1 D� CALLAHAN STREET SKIRT LIGHT 0 MIH SPORT LIGHT (16) secer LIGHT f(24) BASEBALL MAMBO () SPORT LIGHT (11) wow LIGHT (Z3) SOGGIER PRCH (SR.) SPORE LIGHT (14) z SPORT •..:..,..,ti -� eucga (2S) {p .'W SPORT Sucrir (26) ,ti`6 Y SPORT (ri) X ' mMIG a(23) ' 0 � s - LINE- 1\ , DUNMOORE PARK ..... .a ._ .2.. Ila i.. ti. Rs En. P-025 WET 2 Cr 2 ATTACHMENT#_ 3:ro REPORT# Lease Agreement This Lease is made as of the 1st day of July, 2018. Between: The Corporation of the City of Pickering (the "City") - and - Rosebank Tennis, Club (the "Club") Article I`_ Interpretation Definitions 1. In this Lease, (a) "Commencement Date" means July 1, 2018; (b) "Lease" means this lease as it may be amended from time to time; (c) "Premises" means that portion of the two tennis courts, on Durham District School Board Property abutting Rick Hull Memorial Park therein as shown on Schedule "A" attached hereto, located at 575 Rosebank Road, in the City of Pickering, Regional Municipality of Durham; (d) "Rent" means the rent payable pursuant to Section 18; and (e) "Term" means the term of this Lease as set out in Section 15 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. 231 2 Severability 3. 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 4. 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 5. This Lease shall be governed by, and interpreted and enforced in accordance with, the laws in force in the Province of Ontario. Entire Agreement 6. 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. Article II Grant and Use Grant 7. 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 8. The Premises shall be used only for non-profit tennis activities, at its expense and for no other purpose without the prior written consent of the City. Nuisance 9. The Club shall not carry on any activities or do or suffer any actor thing that constitutes a nuisance or which is offensive or an annoyance to the City or other users of Rick Hull Memorial Park. 232 3 City Use of Premises 10. Subject to section 9, the City shall have right of first 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 11. 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 12. The Club may not grant licences to use the Premises. 13. The Club shall submit their annual financial statement to the City by November 1St of each year. 14. The Club shall submit a list of the Club Board of Directors and their contact information to the City by November 1St of each year. ........ ......... . Article' III Term Term 15. The term of this Lease shall be five (5) -years. from the Commencement Date to June 30, 2023. 16. The City may terminate this Lease at any time for any reason provided it has given the Club six (6) months prior notice in writing. Overholding 17. 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. 233 4 Article IV Rent Rent 18. The Club shall pay to the City as rent for the entire Term in lawful money of Canada the sum of One (1) Dollar ($1.00) Utilities 19. The club shall pay annual charges to the City for the tennis courts on site for hydro use. This amount shall be paid on or before April 1 in each year of the term. Annual charges are subject to the City's Approved User Fee By-law. Gross Lease 20. 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 21. The Club shall maintain and operate the Premises so that they shall always be of good appearance, safe and suitable for the proper operation of the Premises - 22. The Club shall provide general, routine maintenance services to the Premises at its expense and shall provide all necessary cleaning and maintenance supplies such as cleaning equipment related to the tennis courts and any associated building under their exclusive use. 23. The Club, at its sole expense shall provide the court nets and any wind screening. This would include installation, removal and storage each year. 24. The City or its designate, shall be responsible for all day-to-day operating expenses including garbage removal, bleachers, benches, fencing, any building associated with use of the courts, lighting and the court surface life cycle replacement. 25. 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 234 expense of any repairs including the City's reasonable administration charge necessitated by such negligence or misuse. 26. The Club shall immediately notify the City of any unsafe conditions on the Premises. Security. 27. The Club shall be responsible for the secured access to. the Premises. The Club will ensure that a key or combination to any lock are provided to the City for maintenance and inspection access. The City staff will be responsible for locking the gate after accessing the courts for maintenance and/or inspection. Alterations/Improvements to Premises 28. The Club shall only be permitted to make alterations and improvements to the Premises that have been approved by the City. Article VI Insurance and Indemni Club's Insurance 29. 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. 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 operators 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. 30. 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. 235 6 31. 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 32. 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 33. 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. Article VII Remedies on Default City's Right to Re -Enter 34. 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. City's Right to Remedy Default 35. 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 of ten (10) days after receipt of notice by the Club (or 236 7 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 36. 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. Article VIII. Miscellaneous Quiet Enjoyment 37. 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 38. The Club agrees to permit the City and authorized representatives of the City to enter the Premises during normal business hours or in an emergency for the purpose of inspecting and or maintaining 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 39. 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. 237 8 Compliance with Laws 40. The Club, at its sole cost and expense, shall comply with all legal 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 41. Any notice required to be given by the City to the Club under this Lease shall be in writing and shall be delivered to 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. 42 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 43. 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 44. Schedules "A" 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 238 9 Rosebank Tennis Club Catalin Codita, President Sofica Mocanu, Secretary 239 NI 0 C Ly/ DICKERING Report to Executive Committee Report Number: CS 25-18 Date: June 18, 2018 From: Marisa Carpino Director, Community Services Subject: Ontario Power Generation - Licence Amending,Agreement - File: A-1440 Recommendation: 1. That the Mayor and City Clerk be authorized to execute a Licence Amending Agreement with Ontario Power Generation for a further five year term, commencing July 1, 2018 and ending on June 30, 2023, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor; and That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The City of Pickering entered into a five year Licence Agreement with Ontario Power Generation from July 1, 2013 to June 30, 2018 respecting the lands described as Part of Lots 20, 21 and 22, Range 3 and Part Lot 2, Plan XM1, Parts 1, 2, 3, 4 and 5, Plan 40R- 1019 and Parts 1 and 2, Plan R-1466, in the City of Pickering, Regional Municipality of Durham (also known as Alex Robertson Park, Bay Ridges Kinsmen Park and Beachfront Park) as more particularly shown on attached Schedules A, B & C (refer to Attachment 1). Ontario Power Generation is in agreement to extend the Licence Agreement for a period of five years, commencing on July 1, 2018 and ending on June 30, 2023, subject to some amendments (refer to Attachment 2). Financial Implications: Under the existing agreement, the City is responsible for the full cost of maintenance on the lands used for recreational purposes, and for paying of the realty taxes or other similar charges levied against the lands. Discussion: The City of Pickering renewed the current five year Licence Agreement with Ontario Power Generation on July 1, 2013 respecting the lands described as Part of Lots20, 21 and 22, Range 3 and Part Lot 2, Plan XM1, Parts 1, 2, 3, 4 and 5, Plan 40R-1019 and Parts 1 and 2, Plan R-1466, in the City of Pickering, Regional Municipality of Durham (also known as Alex Robertson Park, Bay Ridges Kinsmen Park and Beachfront Park). 241 CS 25-18 June 18, 2018 Subject: Ontario Power Generation Licence Amending Agreement Page 2 Alex Robertson Park contains one gravel parking lot, one cricket field, one concrete storage bunker for cricket, one trailer used as change rooms for cricket, walking trails, a section of the waterfront trail, Homeplace art sculpture and eight carvings by Dorsey James as illustrated in Attachment 1, Schedule A. Bay Ridges Kinsmen Park contains two gravel parking lots, four lit baseball diamonds, six turf grass soccer fields of which four are lit, one lit artificial soccer field, four lit tennis courts, one playground, one picnic shelter and one washroom/change room facility as illustrated in Attachment 1, Schedule B. Beachfront Park contains a section of the waterfront trail in the form of a lit boardwalk, six shade structures, one playground, two beach volleyball courts and one washroom facility as illustrated in Attachment 1, Schedule C. In order for the City of Pickering to continue providing recreational uses at Alex Robertson Park, Bay Ridges Park and Beachfront Park, a renewal of the current Licence Agreement is required. Ontario Power Generation is in agreement to extend the Licence Agreement for a period of five years, commencing on July 1, 2018 and ending on June 30, 2023, subject to some amendments (refer to Attachment 2). The Director, Community Services recommends that a Licence Amending Agreement extending the term of the existing Licence Agreement for an additional five year term (from July 1, 2018 to June 30, 2023) be entered into, and that the Council of the City of Pickering authorize the Mayor and City Clerk to execute the agreement in its final form. Attachments: 1. Licence Agreement 2013 — 2018 2. Licence Amending Agreement May 17, 2018 242 CS 25-18 June 18, 2018 Subject: Ontario Power Generation Licence Amending Agreement Page 3 Rob Gagen Supervisor, Parks Operations RG:mc Approved/Endorsed By: Marisa C'a`pino Director, Community Services Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer CORP0227-D7101 revised 243 ATTACHMENT #__L_TO REPORT # L 05- ie LICENCE AGREEMENT This Agreement is mode as aflune 27, 2013 between ONTARIO POWER GENERATION INC.. a corporation existing under the laws of Ontario )"'OPG"), and THE CORPORATION OF THE CITY OF PICKERING, a corporation existing under the laws of Ontario (the "City") Recite Is A, OPG i5 the owner in fee simple of certain lands described as Part of Lots 20, 21 and 22, Range 3 and Part Lot 2, Nan XM 1, Parts 1 2, 3, 4, and 5, Plan 40R-1014 and Parts 1 and 2, Plan R-4466, in tate City of Pickering, Regional Municipality of Durham as more particularly shown on attached Schedules "A", "B" & "C". B. The City wishes to enter upon the Lands for public park purposes (the "Recreational Uses"). C. OPG has agreed to permit the City to use the Lands for the purpose of the Recreational Uses it, accordance with the terms and conditions as set out below. For value received, the parties agree as follows_ 1. Interpretation I 1 In this Agreement the following terms have the respective meanings set out below. (a) "Alex Robertson Park" means the lands located to the west of Sandy Beach Road, in the City of Pickering, and as more particularly shown outlined on Schedule "A". (b) "Applicable Laws", in respect of any person. property, transaction or event. means ail applicable federal, provincial. municipal and Iocal laws, statutes, rules, regulations, orders, guidelines, codes, by-laws, ordinances, standards, treaties, judgements and decrees applicable to that person, property, transaction or event at the applicable time and, whether or not having tate force of law, all applicable approvals, requirements. requests, directives, rules, guidelines, instructions, circulars, manuals, policies and formal interpretations thereof of nny governmental authority having or purporting to have authority over that person. property, transaction or event at the applicable time, including all applicable licences, authorizations and permits of the Canadian Nucicar Safety Commission. (c) "Bay Ridges Kinsmen Park" means the lands located on the cast side of Sandy Beach Road in the City of Pickering, and as more particularly shown outlined on Schedule "B". (d) "Beachfront Park" means the lands located to the east of Liverpool Road and fronting onto Lake Ontario, in the City of Pickering. and as more particularly shown outlined on Schedule "C". (e) "Hazardous Substance" means any substance, material, ehemlcat, wase of any nature or thing (including asbestos, asbestos containing material. petroleum. petroleum by-products. radioactive substances, pesticides, herbicides. polychlorinated biphenyls) which is or is deemed or defined to be under Applicable Laws, alone or in any combination, hazardous, dangerous. toxic, a pollutant, a deleterious substance, a dangerous good, a designated substance, a contaminant or a source of pollution or contamination or is otherwise regulated, and includes all analogous concepts as defined In or pursuant to any Environmental Law or designated under any Environmental Law". 244 (f) "Lands" means collectively Alex Robertson Park, Bay Ridges Kinsmen Park and Beachfront Park. (g) "Realty Taxes" is defined in Section 6. (h) "Recreational Uses" is defined in Recital B. (i) "Station" means all or any part of OPG's nuclear generating station commonly known as Pickering Nuclear Generating Station including related business operations and activities from time to time. 1.2 Schedules "A", "B", and "C" attached hereto are incorporated into this Agreement. 2. Grant of Licence 2.1 OPG hereby grants to the City a non-exclusive licence to let certain of its employees, servants, contractors, agents and other invitees or entities including the general public to use the Lands for Recreational Uses including (a) walking, hiking, biking, snow shoeing, cross-country skiing, wildlife observation, photography, educational activities; and picnics, subject to Section 4.10, children's play areas, athletic fields (soccer, baseball, softball, football and cricket), tennis courts and associated facilities. This Agreement includes a right of ingress and egress over the Lands for the purposes set out herein. 2.2 The City acknowledges that this Agreement does not create an interest in the Lands nor does the City claim any past or present interest, howsoever arising, as a result of or connected in any way with the use and occupation of the Lands; and in consideration of the rights and privileges granted herein, the City does hereby release and revoke any claim against the Lands against OPG, its subsidiary corporations, successors and assigns. /3 This licence is granted only for the duration of this Agreement and only for the purposes and uses stated herein. No other purposes shall be permitted without prior approval from OPG. 2.4 The licence granted herein is not exclusive and OPG reserves the right to grant, renew or extend Iicenses and other interests to other third parties. 3. Term 3.1 The term of this Agreement shall commence on July 1, 2013 and shall expire at 11:59 pm on June 30, 2018, unless terminated at an earlier date as provided for herein. 3.2 This Agreement may be terminated at any time by either OPG or the City upon six (6) month's notice in writing. Upon the breach by the City of any term or condition set out herein, OPG may terminate this Agreement forthwith upon verbal or written notice. OPG shall have the right to suspend this Agreement, or halt any activities being exercised under the authority of this Agreement, for such reasonable period(s) of time if, in OPG's sole discretion, the safety of any person may be in jeopardy or any of OPG's operations at or near the Lands, including the Station, may be interfered with or in danger and OPG will not be liable to the City for any damages or loss occasioned thereby. OPG may terminate this Agreement in whole or in part at any time if the Lands or any portion of the Lands are required by OPG for its purposes or if such Lands or any portion thereof are required for the purposes of complying with any Laws. OPG will not be liable to the City for any damage or loss occasioned thereby. Upon the expiry or earlier termination of this Agreement the City shall remove any permitted structures and alt other property of the City and all waste and debris from the Lands, at its own expense, and restore the Lands to a condition satisfactory to OPG, acting reasonably. • 4. Condition and Use of the Lands 4.1 The City acknowledges having had the opportunity to inspect the Lands prior to entering into this Agreement and accepts the Lands"as is, where is". 4.2 The City shall pay OPG a nominal licence fee, being the sum of two (52.00) dollars per annum, the receipt and sufficiency of which is hereby acknowledged. 245 -3- 4.3 The City will ensure that the Lands shall, at all times_ be kept in a safe, neat and tidy condition satisfactory to OPG. The City agrees to maintain the Lands to a standard as would a reasonable and prudent owner of land or similar size and nature. 4.4 The City will ensure that sufficient personnel are present at all times, to manage, control and coordinate the activities of the City and to ensure vehicular, pedestrian and public safety. 4.5 The City will immediately report any damage that occurs to the Lands or Station. OPG, in its sole discretion, and at the sole expense of the City, may effect all repairs that may be necessary or require the City to effect same. 4.6 OPG may at any time upon reasonable notice (except in an emergency when no notice shall be required) enter the Lands and inspect, install, maintain, repair, replace, remove, alter, relocate or add to any of the OPG works located thereon and may construct, install, inspect. maintain, repair, replace and remove any new works on the Lands and conduct excavation without liability to the City. 4.7 The City agrees not to permit, bring, cause or allow to be brought or remain in or upon the Lands any activities, uses, matters or substances of a hazardous, offensive or toxic nature and to not cause or permit any nuisance (public or private) or damage in, on or to the Lands or adjacent lands of OPG. Where in the opinion of OPG, a nuisance or damage exists and OPG requires the City to do so, the City will forthwith abate the nuisance or damage and clean up the Lands. The City shall pay for the costs of all remedial action considered necessary by OPG to abate any hazard, nuisance, or offensive activity that the City has failed to rectify or any damage or adverse impact to the Lands or adjacent lands of OPG arising from or attributable to activities, uses or conduct of the City or its permittees or members of the public. 4.8 Subject to Section 3, the City acknowledges that the erection. installation or alteration of any structure on the Lands. including any signs, or any alteration of the grounds of the Lands (including grading), requires the prior written approval of OPG. 4.9 The City shall not interfere in any way, any works, equipment or facilities of OPG, including the Station, or Hydro One Networks Inc. now existing or hereinafter constructed on, adjacent to or near the Lands, and without limiting the generality of the foregoing, the City shall ensure that the height of any vehicle, load or object, including attachments, or people standing thereon, under, at or near any electrical conductors or transmission or distribution lines will not exceed 4.115 m (13.5") above the existing grade. 4.10 The use of open flames and flammable, toxic or explosive materials on the Lands is strictly prohibited. Smoke machines using a non-toxic, non -irritating substance, simulated gunfire and other special equipment may only be used, for purposes of creating certain special effects, as approved by OPG. 4.11 The City shall prohibit kite and model aeroplane flying and any other activities which in the opinion of OPG might interfere with the safe and efficient operation of its works or be offensive, annoying or dangerous and shall post signs in locations on the Lands approved in writing by OPG, stating that kite flying and model aeroplane flying and other activities are prohibited. 4.12 The City shall post signs which shall inform all employees, servants, contractors, agents of the City and all other persons or entities (including the general public) that the Lands form part of the Station, and as such, all activities on the Lands are subject to the rules, regulations and orders of OPG. The content, number and location of the signs shall be subject to the prior written approval of OPG. acting reasonably. 4.13 The City acknowledges that OPG has an employee recreational club which is called the Pickering Association of Recreational Clubs (the "PARC'). The City agrees that the PARC shall be entitled to participate in the allocation of time slots for the Lands, in accordance with the City's guidelines and procedures governing the allocation of time slots, during each calendar year of the term of this Agreement 246 -4- 5. Parking 5.1 Parking shall only be permitted on the Lands at the locations indicated on the attached Schedules "A" and "B" (the "Parking Areas"). There is no parking permitted within Beachfront Park. 5.2 The City shall, at its own expense, erect and maintain suitable barriers around the Parking Areas to clearly identify the Parking Areas from the surrounding lands. 5.3 The City acknowledges and agrees that the parking of vehicles on any of OPG's lands adjacent to the Lands, at any parking facility located near the Lands, including the parking lot located at the facility known as the OPG Pickering Learning Centre, or alongside any roads at or near the Lands is strictly prohibited. Vehicles parked in breach of this section may be tagged and/or towed at the owner's expense. OPG will not be liable for any damages, expenses or losses occasioned thereby and the City hereby indemnifies OPG for any and all such damages, expenses or losses. 6. Realty Taxes 6.1 The City shall pay to OPG during the term of this Agreement, and within a reasonable period of time after demand thereof an amount equal to all amounts paid or payable by OPG on account of any realty taxes or grants or payments in lieu thereof, rates, fees or other assessments or payments in lieu thereof, that are attributable to the Lands (the "Realty Taxes") together with any applicable FIST. The Realty Taxes for any partial calendar year at the start or expiry or termination of the Term will be calculated and payable for such calendar year on a per diem basis for such part of such calendar year. The City acknowledges that Realty Taxes for each calendar year of the Term shall be determined by OPG based on the tax rates applicable to the Lands for the relevant year. 7. Insurance 7.1 The City shall purchase and maintain throughout the term of this Agreement, commercial general liability insurance which shall include coverage for personal injury (including death) and property damage, including loss of use thereof, all on a per occurrence basis, with respect to the use and occupation of the Lands by the City, its employees, representatives and invitees permitted by the City to use the Lands (including members of the public), with a limit for any one occurrence or claim of not less than $10,000,000.00, which amount may be increased if OPG, in its sole discretion, so requires. Such insurance shall (1) name OPG as an additional insured, (2) contain a severability of interests and a cross-Iiability clause, (3) contain a waiver of any subrogation rights which the City's insurers would have against OPG or any person for whom OPG is in law responsible, and (4) specify that it is primary coverage and not contributory with or in excess of any insurance coverage maintained by OPG. The City shall provide evidence of such insurance to OPG upon request. 7.2 All policies will contain an undertaking by the insurers that no materia] change, cancellation or termination of any policy will be made unless OPG has received at least thirty (30) days prior written notice of the change, delivered by courier or by registered mail to OPG at the address provided for notice under this Licence. 7.3 If the City at any time fails to take out, keep in force or pay the premiums on any insurance as required in this Licence, or if the City fails from time to time to deliver to OPG satisfactory proof of the good standing of any such insurance or the payment of premiums as required in this Licence then OPG will, without prejudice to any of its other rights and remedies under this Licence, have the right, but not the obligation, to place such insurance on behalf of the City. This cost together with all expenses incurred by OPG and an amount equal to 15% of those costs and expenses to cover OPG's overhead and supervision will be paid by the City to OPG upon demand. 8. Liability 8.1 The City shall assume full responsibility for (i) the acts or omissions of its employees. servants, contractors, agents and all other persons or entities permitted by the City to use 247 the Lands (including the general public); and (ii) the safety of its employees, servants, contractors, agents and all other persons or entities permitted by the City to use the Lands. 8.2 The City assumes all liability and obligation for any and all loss. damage or injury (including death) by accident or otherwise, to all persons or property, howsoever arising, as a result of or connected in any way with the use and occupation of the Lands by the City, its employees, servants, contractors, agents and all other persons or entities.permitted by the City to use the Lands (including the general public) or that would not have occurred but for this Agreement; and in consideration of the rights and privileges granted herein, the City does hereby release and forever discharge OPG. its subsidiary and affiliated corporations, successors and assigns and all persons acting on its or their behalf, from all claims, actions, demands or other proceedings in respect thereof; and in further consideration of the same, the City hereby agrees to indemnify OPG, its subsidiaries, its successors and assigns and all persons acting on its or their behalf, from all'such claims, actions, demands or other proceedings and all expenses and costs occasioned thereby or connected therewith. 9. Compliance 9.1 The City will comply at all times with all Applicable Laws. The City shall also comply with any and all rules, regulations and requirements as may be prescribed by OPG from time to time. The City shall comply with all instructions and orders issued from time to time by OPG and all persons acting on its behalf including instructions and orders to suspend or halt any activity on the Lands if, in OPG's sole discretion, the Lands or any of OPG's operations at, adjacent or near the Lands may be interfered with or in danger, if the safety of any person may be in jeopardy of any activity on the Lands is not being carried out in accordance with the terms of this Agreement. OPG will not be liable to the City for any damages or loss occasioned thereby. 9.2 In the event. OPG considers it necessary that any of the Lands be fenced or otherwise protected or made separate, the City shall, upon notification in writing by OPG, at its own expense erect and maintain such fences or other protective installations. The City will not perform anysnow ploughing, piling or removal and shall not permit snow to be ploughed or piled on the Lands or on any adjoining lands owned or operated by OPG. 10. Notice 10.1 Any notice, approval, demand, direction, instruction, consent, request, document or other communication required or permitted to be given under this Agreement ("Notice") may be delivered in person, by courier or by fax to the applicable party, as follows: If to OPG, Ontario Power Generation Inc. Real Estate Services 700 University Avenue, 1-118 D8 Toronto, Ontario, M5G 1X6 Attention: Manager, Real Estate Services Fax: (416) 592-8115 if to the City, The Corporation of the City of Pickering Operations and Emergency Services Department One The Esplanade Pickering, Ontario, LI V 6K7 Attention: Richard Holborn, Director, Engineering and Public Works Fax: (905) 420-4650 or to any other address, fax number or individual that a party designates by Notice. Any Notice under this Agreement, if delivered personally or by courier will be deemed to have been given when actually received_ if delivered by Fax before 3:00 p.m. on a business day will be deemed to have been delivered on that business day, and if delivered by fax ager 3:00 p.m. on a business day or on a day which is not a business day will be deemed to be delivered on the next business day. 248 -6- 11. Prior Agreements 11.1 This Agreement constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior agreements. negotiations. discussions. representations, warranties and understandings, whether written or verbal, including the following agreements which are hereby revoked: (a) Licence between Ontario Hydro and The Corporation of the Town of Pickering dated April 27, 1987 with a term of twenty-five (25) years, in relation to that portion of Bay Ridges Kinsmen Park currently being used for Soccer Pitch Fields 1, 2. 3 and 4 on Schedule "B" and recorded in OPG's records as P421795; and (b) Licence Agreement between Ontario Power Generation and The Corporation of the City of Pickering dated April 3, 2006 with.a term of five (5) years (P901485) in relation to that portion of Bay Ridges Kinsmen Park currently being used for the 2 southern -most Baseball Diamonds on Schedule "B" and recorded in OPG's records as P901485. 12. General Terms 12.1 The division of this Agreement into sections and the insertion of headings are for convenience of reference only and are not to affect the construction or interpretation of this Agreement. Words importing the singular include the plural and vice versa. The term "including" means "including without limitation". and the terms "includes" and "included" have similar meanings. The term "entity" means any individual, sole proprietorship, partnership, corporation, limited liability company, trust, joint venture, governmental authority or any other incorporated or unincorporated entity or association of any nature. This Agreement is governed by, and is to be construed and interpreted in accordance with, the laws of Ontario and the laws of Canada applicable in Ontario. The parties irrevocably submit to the non-exclusive jurisdiction of the courts of Ontario in respect of any matter relating to this Agreement. If any term of this Agreement is or becomes illegal, invalid or unenforceable, the illegality, invalidity or unenforceability will be deemed severable and will not affect any other term of this Agreement. The City may not assign this Agreement without the prior written consent of OPG. This Agreement enures to the benefit of and binds the parties and their respective successors and assigns. No term of this Agreement may be amended or waived except in writing. No failure to exercise, and no delay in exercising, any right or remedy under this Agreement will be deemed to be a waiver of that right or remedy. No waiver of any breach of any term of this Agreement will be deemed to be a waiver of any subsequent breach of that term. The parties have duly executed this Agreement. ONTARIO POWER GENERATION INC. THE CORPORATION OF THE CITY OF P RING A _ /. 1 t � Name: 1y Davies dame Richard , ol.om Title: Director. Engineering and PusWorks 1 have the authority to bind the Corporation. I have the authority to bind the Corporation. Title: Real Estate Strategy Manager 249 - 7 — L'/Vi.41.177L/ f .NS S li?-%1CFS 1:WPM:IMP:NT ATTACHMENT FOR OPERATIONS • SC,IEDULE "A' - ALX RCeERTSOW PARK N S JUNE 6 Wall 250 ATTACHMENT FOR OPERATIONS ----.-- - & EMERGENCY SERVICES REPORT - . ... . .. . SCt-EDUE 11' , BAY Ft DGES KINSMEN PPM .• „ - . . ....._ -...... .. -.- 251 - 9 -- PARKOL:-.'3" • 10T " • C2r.=c6.500 OPG-PiCKERiNG C. i -,.. - . , i _-..-.-, . ; Op ,...-.../ 1.,.--..- ,'7 G, , 4„. `'s -• p , / •„.. .., \__ • - ., / -. •+,, AREA."--. * ., • • I 2.5 ha. 1 %- -"•>,,, \ 6.2 acre i - -..,.. 4kN,..4. ss . .. • . -,„ ......._...-- 1' I .., -• -- ........-.-,,,, i — -.‘ 1 s... ; i • --- „ -,..., • -- , t ,.- ---------,--.„ : --, • s--- e / ------- i .„ -, • ,„,, t• ATTACHMENT FOR OPERATIONS & EMERGENCY SERVICES REPORT ' • - " • • SCHEDULE"C` BEAO-M2ONT PARK 252 ATTACHMENT # TO REPORT # LS 5 -- LICENCE AMENDING AGREEMENT THIS "AMENDING AGREEMENT" made as of the , 2018 BETWEEN: ONTARIO POWER GENERATION INC., a corporation existing under the laws of Ontario (hereinafter called "OPG") - and - THE CORPORATION OF THE CITY OF PICKERING a corporation existing under the laws of Ontario (hereinafter called the "City") RECITALS: A. OPG and the City entered into a licence agreement dated as of June 27, 2013 (the "Licence"), whereby OPG granted a non-exclusive licence to the City to enter upon a portion of the Lands for Recreational Uses. B. The City wishes to extend the term of the Licence. . C. OPG wishes to replace the Schedules "A", "B" and "C" of the Licence (the "Schedules") with the new aerial map to describe the Lands attached hereto as Schedule "A-1". D. OPG and the City have agreed to amend the Licence to replace the Schedules and extend the Term of the Licence on the terms and conditions contained herein. For value received, the parties agree as follows: 1. Interpretation Any defined term used in this Amending Agreement that is notdefined has the meaning given to that term in the Licence. 2. Deletion and Replacement of the Schedules The Schedules are hereby deleted in their entirety and replaced with the new aerial maps attached hereto as Schedule "A-1" for Alex Robertson Park as in Schedule "A", Bay Ridges Kinsmen Park as in Schedule "B" and Beachfront Park as in Schedule "C". 3. Term The term of the Licence is hereby extended and shall expire at 11:59 pm on June 30, 2023, unless terminated at an earlier date as provided for in the Licence. 1 253 4. Licence Remains in Full Force Except as herein provided, the terms and conditions of the Licence shall continue in full force and effect, unamended. This Amending Agreement is hereby ratified and affirmed by each of OPG and the City and is incorporated as part of the Licence. 5. Counterparts This Amending Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which when, taken together, shall constitute one and the same instrument. 6. Governing Law This Amending Agreement is governed by and is to be construed and interpreted in accordance with the laws of Ontario and the laws of Canada applicable in Ontario. The parties have duly executed this Amending Agreement. ONTARIO POWER GENERATION INC. THE CORPORATION OF THE CITY OF PICKERING Per: Per: Name: Ray Davies Name: Dave Ryan Title: Sr. Manager, Real Estate Services Title: Mayor I am authorized to bind the Corporation 2 254 Per: Name: Debbie Shields Title: City Clerk We are authorized to bind the Corporation. Schedule "A-1" Revised Schedules "A", "ii" Rud "G" 255 MA 256 5 257 DICKERING C4 od Report to Executive Committee Report Number: ENG 11-18 Date: June 18, 2018 From: Richard Holborn Director, Engineering Services Subject: Community Safety Zones and Bill 65 Update - File: A-1440 Recommendation: 1. That Report ENG 11-18 regarding an update on the status of Bill 65 with respect to the use of Automated Speed Enforcement technologies in school zones and community safety zones be received for information; 2. That the attached draft by-law be enacted to amend Schedule "14", Community Safety Zones, to By-law 6604/05 to provide for the addition of community safety zones on highways or parts of highways under the jurisdiction of The Corporation of the City of Pickering, specifically. to add community safety zones on portions of Major Oaks Road, Oklahoma Drive, Bushmill Street, and for an extension of the existing community safety zone on Glenanna Road for William Dunbar Public School; and 3. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: On March 12, 2018, Pickering City Council passed Resolution #415/18 requesting staff to conduct a review of existing and potential community safety zones in the city, specifically in regards to local roads fronting schools, and to provide an update on the status of Bill 65. In response to Resolution #415/18, staff have reviewed all existing streets in Pickering for potential locations for additional community safety zones, and propose new and extended community safety zones on the following roads: • Major Oaks Road, from Middleton Street to Hollyhedge Drive (Valley Farm Public School) • Oklahoma Drive, from 30 metres west of Eyer Drive to Leaside Street (Fairport Beach Public School and Frenchmans Bay Public School) • Bushmill Street, from Liverpool Road to Maple Ridge Drive (Maple Ridge Public School) • Glenanna Road (extension of the existing community safety zone), from Heathside Crescent to Huntsmill Drive (William Dunbar Public School) 258 ENG 11-18 June 18, 2018 Subject: Community Safety Zones Bill 65 Update Page 2 Also as an update to Bill 65: The Bill received Royal Assent on May 30, 2017, and was referred back to the Ministry of Transportation of Ontario (MTO) for the development of standards and regulations. The MTO, along with the Ontario Traffic Council (OTC), created an inter -municipal working group in an effort to create Automated Speed Enforcement Standards & Regulations intended to provide consistency throughout the province. The inter -municipal working group is currently drafting a joint Request for Proposal (RFP) document for the procurement of Automated Speed Enforcement (ASE) equipment and operations. The City of Toronto is expected to issue the RFP in 2018 on behalf of the working group. The RFP evaluation process and contract award by all participating municipalities is expected to occur in early 2019 at the earliest, with the anticipated design and installation of the first ASE site taking up to one year after contract award. Financial Implications: The addition of community safety zones signs and posts can be accommodated within the 2018 Roads Current Budget. Expenditures and revenues related to participating in the Automated Speed Enforcement Program are not known at this time. Discussion: On March 12, 2018, Pickering City Council passed Resolution #415/18 (Attachment 1) for staff to conduct a review of the community safety zones policy, specifically in regards to local roads fronting schools, and to provide an update on the status of Bill 65. In response to Resolution #415/18 staff have reviewed Bill 65 and all existing streets in Pickering for opportunities for additional community safety zones. The following report detailsstaff's findings. Summary of Bill 65 The intent of Bill 65, also known as the Safer Schools Zone Act, is to amend the Highway Traffic Act (HTA) to enact a new automated speed enforcement system (ASE). The additions to the HTA with respect to Bill 65 can be summarized as follows: • enables municipalities to establish reduced default speed limits in urban areas within municipal boundaries/neighbourhoods with speed limit signs posted at entry and exit points • amends the Highway Traffic Act ("HTA") to allow for the use of technology to enforce speeding offences (ASE) in community safety zones and in school zones • provides a streamlined process for municipalities to participate in Ontario's effective Red Light Camera program without the need for lengthy regulatory approval 259 ENG 11-18 June 18, 2018 Subject: Community Safety Zones Bill 65 Update Page 3 Schedule for Implementation of Bill 65 The following is a estimated timeline for the implementation of Bill 65: 1. Bill 65 was introduced by the Provincial Government on November 15, 2016 and received Royal Assent on May 30, 2017. 2. Subsequently, the Bill was referred back to Ministry of Transportation of Ontario (MTO), which, along with the Ontario Traffic Council (OTC), has formed an inter -municipal working group in an effort to create Automated Speed Enforcement Standards & Regulations intended to provide consistency throughout the Province. Some of the issues under consideration are: a) expected impact on court services as speeding is usually handled by municipal Provincial Offences Act courts. There is a concern that ASE infractions may overwhelm the court system. One option being considered is the use of the Administrative Monetary Penalties system, similar to what is used by parking enforcement in Pickering and some other municipalities b) fixed location vs mobile enforcement c) initial warning period d) enforcement thresholds e) common designations of school zones and community safety zones f) signage/markings 3. The inter -municipal working group is currently drafting a joint Request for Proposal (RFP) document for the procurement of ASE equipment and operations. The City of Toronto is expected to issue the RFP in 2018 on behalf of the working group. 4. The committee envisions that an ASE program would work very similar to how red light cameras operate currently, which is: a) City of Toronto will operate a joint processing centre (sending out offence notices) on a cost recovery basis for any involved municipality b) municipalities will select candidate sites for implementation — each participating municipality would have a separate but similarcontract with the selected vendor c) like red light cameras, municipalities would not own any equipment — contracts would include design, installation, operations and maintenance The RFP evaluation process and contract award by all participating municipalities is expected to occur in early 2019 at the earliest, with the anticipated design and installation of the first ASE site taking up to one year after contract award (at the end of 2019 or early 2020). 260 ENG 11-18 June 18, 2018 Subject: Community Safety Zones Bill 65 Update Page 4 It should be noted that in 2015, the Region of Durham conducted a detailed review of the red light camera system and declined the use of this type of enforcement within the. Region at that time. Definition of School Zones and Community Safety Zones According to the Highway Traffic Act, a municipality can designate any road or section of road within 150 metres of a school, in either direction, as a school zone. The City of Pickering currently designates roads fronting public and catholic schools as school zones, and will designate school zones by private schools as well, where required. The purpose of a community safety zone, however, is to indicate to the motorist that they are within a zone where fines can be increased through a special designation under the Highway Traffic Act. Community safety zones are typically placed on sections of roadway where public safety is of special concern. In a community safety zone the fines for offences within the Highway Traffic Act (i.e. speeding, careless driving, etc.) may be doubled at the discretion of the police officer. Parking fines cannot be increased within a community safety zone. The Highway Traffic Act delegates authority to municipalities todesignate a part of a highway under its jurisdiction as a community safety zone. The HTA requires that the community safety zone must be recognizable to the driver (by regulatory signs) as a special situation that warrants an increased awareness of community activity adjacent to the road right-of-way. Also, the ability of the Durham Regional Police Services to effectively enforce moving offences should be taken into consideration to make a community safety zone a successful traffic safety tool. The City of Pickering Currently Has Seven Community Safety Zones The City of Pickering does not currently have a policy for the installation of community safety zones. In 2008 however, the City of Pickering commenced a pilot project where community safety zones were installed on higher volume arterial roads that are adjacent to schools as part of a major amendment to the traffic and parking by-law. 261 ENG 11-18 June 18, 2018 Subject: Community Safety Zones Bill 65 Update Page 5 The City of Pickering currently has seven community safety zones on municipal roads, located at the following locations: Road Limits Dixie Road Glenanna Road to Kitley Avenue Glenanna Road Heathside Crescent to Brookshire Square Glenanna Road Rosebank Road Strouds Lane Sheppard Avenue Dixie Road to Listowell Crescent Strouds Lane to Charnwood Court Autumn Crescent to Alder Court 135 metres east of Edmund Drive to Whites Road Twyn Rivers Drive Altona Road to 360 metres west of Ashwood Gate Adjacent School Vaughan Willard Public School William Dunbar Public School Vaughan Willard Public School Altona Forest Public School and St. Elizabeth Seaton Catholic School St. Elizabeth Seaton Catholic School and Highbush Public School Dunbarton High School St. Monica Catholic School These community safety zones are shown graphically from Attachment 2 to Attachment 5. Bill 65 allows for municipalities to install ASE in school zones and/or in community safety zones. As fines for offences under the Highway Traffic Act are doubled at the discretion of the officer in community safety zones, the inter -municipal working group expects that this doubling of fines will be applied on every infraction that is captured by an automated system. Therefore, it has been suggested by the inter -municipal working group that all school zones in the ASE area be designated as a community safety zone. The above notwithstanding, Engineering Services staff at the City of Pickering reviewed all existing community safety zone locations, and potential locations near schools that would benefit from the addition of a community safety zone. Based on the review, Engineering Services staff recommends community safety zones be installed on collector andlocal municipal roads where the following criteria is met: • where an existing school zone is present • where, through traffic studies, the 85th percentile speed of vehicles is at least 10 km/h greater than the posted speed limit during the school's peak pick-up and drop-off times, or, in an area where non-compliance of an existing traffic control is recognized 262 ENG 11-18 June 18, 2018 Subject: Community Safety Zones Bill 65 Update Page 6 Also, it is recommended that existing community safety zones (in school zones) be extendable (up to 500 metres) to incorporate residential housing, parks, retirement communities and daycares, provided that the above criteria is met and there is community support for the change. Therefore, based on this criteria, it is recommended that community safety zones be added to the following roads. Road Limits Major Oaks Road Middleton Street to Hollyhedge Drive Oklahoma Drive 30 metres west of Eyer Drive to Leaside Street Adjacent School Valley Farm Public School Fairport Beach Public School and Frenchmans Bay Public School Glenanna Road Heathside Crescent to Huntsmill Drive William Dunbar Public School (extension of existing) Bushmill Street Liverpool Road to Maple Ridge Drive Maple Ridge Public School These proposed community safety zones are shown graphically in Attachment 6 to Attachment 9. The draft by-law amendment to Schedule 14 of By-law 6604/05, for the proposed community safety zone additions can be found in Attachment 10. Engineering Services staff will continue to address the need for additional community safety zones, as a tool for addressing traffic safety, and will provide updates to By-law 6604/05 as required. However, it should be noted that overuse of the community safety zone designation could become counter-productive to the goal of increased traffic and pedestrian safety. Attachments: 1. Council Resolution #415/18 2. Existing Community Safety Zones, Dixie Road and Glenanna Road 3. Existing Community Safety Zones, Rosebank Road and Strouds Lane 4. Existing Community Safety Zone, Sheppard Avenue 5. Existing Community Safety Zone, Twyn Rivers Drive 6. Proposed Community Safety Zone, Major Oaks Road 7. Proposed Community Safety Zone, Oklahoma Drive 8. Proposed Community Safety Zone, Glenanna Road (extension of existing) 9. Proposed Community Safety Zone, Bushmill Street 10. Draft By-law, Amendments to Schedule 14, Community Safety Zones to By-law 6604/05 263 ENG 11-18 June 18, 2018 Subject: Community Safety Zones Bill 65 Update Page 7 Prepared By: Approved/Endorsed By: Nathan Emery Ricrard Holorn, P,Eng. Coor nator, Traffic Operations a rector, Engineering Services Scott Booker Manager, Capital Projects & Infrastructure NE:mjh Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng, Chief Administrative Officer 264 ATTACHMENT# TO Ri PORT# CNC) -of�- • Legislative Services Division • Clerk's Office Directive Memorandum March 14, 2018 To:. Richard Holborn Director, Engineering Services From: Subject: Debbie Shields City Clerk Direction as per Minutes of the Meeting of C'ity Council held on March 12, 2018 Notice of Motion Community Safety Zones on Local Roads Council Decision Resolution #415/18 Whereas in January 2003, new provincial legislation. enabled the City of Pickering to implement a policy to regulate the installation of community safety zone roads in specified locations with a goal to target aggressive driving and to improve safety; Whereas on May 30, 2017, Ontario passed Bill 65, Safer School Zones Act to help municipalities target unsafe drivers and protect children, seniors, other pedestrians and cyclists; Whereas the new Act will allow municipalities to implement and operate automated speed enforcement (ASE) technology to enforce speeding traffic offences in school and community safety zones on roads with a speed limit under 80 km/h using an opt -in approach enabling municipalities to enroll in a red light camera (RLC) program through a streamlined regulatory approval process; Whereas municipalities will be able to establish reduced default speed limits (RDSLs) in urban areas within municipal boundaries/neighbourhoods with speed limit signs posted at entry and exit points (i.e. perimeter signs); Now Therefore be it resolved that: 1. City staff conduct a review of the community safety zones policy, specifically in regards to local roads fronting schools; 2. Provide an update on the status of Bill 65; and 3. That staff report back no later than June. 265 ATTACHMENT# 1 TO REPORT#C') 11 .- NOM — Community Safety Zones ofMarch 14, 2018 Page 2 Please take any action deemed necessary. Debbie Shields Copy: Chief Administrative Officer 266 WILLIAM O)NSAR PS 0 r 11 1 Gres. Legend Community Safety Zone mmalam Engineering Services Department SUIS NTS PLT( 647E May, 2018 . Existing Community Safety Zones Dixie Road and Glenanna Road PICKERING ,N3WHDb! J� z Htb 0 �I�1 nTh WoodsmereCres. Cres. x Charn Ct''Miranda l 0 Ct. OD " �'Ashfield (1) I 3Ct. 2 _c 0 ! A LTONA FOREST - P5 ' D. Fernarn Strouds Ln.. ti Post fir. STELLZASETH i' s�sort 4,` 0 AIder Ct. HPGI 'USH CO PS 0 '; as Norfolk S. Qom} ! #B R AY PARK o co ("ti Cres. Legend Community Safety Zone isimmosuin Engineering Services city 4 Department Existing Community Safety Zones BICKERING SCAM NTS PLO May, 201 B Rosebank Road and Strouds Lane z Htb 0 �I�1 nTh Sheppard Ave. DIMaciRTOW fl GH SCHOOL.. Legend Community Safety Zone mossimmus Steeple 'Hill Engineering Services Department SCALE NTS PLOT WE: May, 2018 Existing Community Safety Zone Sheppard Avenue 640E PICKERING s- z 4�C 0 w Lancrest"St.I,. -5 > o ty, f! 1;1„, _i r� � Try _ Oakburn VVfite Pine Cres. West Ln. I or''irc'Gate ct ; S. o. CP. �a C3 Starview Sweetbrier °cy t. Ct. r avoo�f. TOT LDT If Lawson St, Twyn Rivers Dr. ' 0 i nwood 0 - Howell 4 CO CS 0 ci?I< c21�chardson St ,d y5. ` Ifs- % 9�II c46`1e Legend _ - /ry,p� p �j� (� Sta�r�eharnpton' Ct. Community Safety Zone Engineering Services C4 Department Existing Community Safety Zone off[ PICKERI NG SCALE: NTS P May, 2018 Twyn Rivers Drive z 4�C Legend Proposed Community Safety Zone Engineering Services Department SCALE: NTS PLOT DATE: May, 2018 Proposed Community Safety Zone Major Oaks Road city o� PICKERING m • ® 0 Sanok Dr. Vicki F41RPO RT BEACH PS 0 Eft'ENCEMAVS SAY PUBLIC SCHOOL Legend Proposed Community Safety Zone Engineering Services Department 5W E NTS PLOT DATE May, 2018 Proposed Community Safety Zone Oklahoma Drive PICKERING WILLIAM DUNBAR PS Legend Proposed Community Safety Zone Engineering Services Department SCALE NTS PLOT BATE May, 2018 Proposed Community Safety Zone Glenanna Road (extension of existing) cg o, PICKERING #1N IHDV 0 7.2 i Legend Proposed Community Safety Zone Engineering Services Department SCALE: NTS PLOT DUE: May, 2018 Proposed Community Safety Zone Bushmill Street PICKERING rn 0 IrrN ATTACHMENT i_ 1 D TOREPORT# CI I-15 of The Corporation of the City of Pickering By-law No. Being a by-law to amend By-law 6604/05 providing for the regulating of traffic and parking, standing and stopping on highways or parts of highways under the jurisdiction of the City of Pickering and on private and municipal property. Whereas By-law 6604/05, as amended, provides for the regulating of traffic and parking on highways, private property and municipal property within the City of Pickering; and Whereas, it is deemed expedient to amend Schedule 14 to By-law 6604/05 to provide for the regulation of community safety zones on highways or parts of highways under the jurisdiction of the Corporation of the City of Pickering, specifically to add community safety zones on sections of Major Oaks Road, Oklahoma Drive, Bushmill Street, and to extend the existing community safety zone on a section of Glenanna Road. Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. Schedule 14 to By-law 6604/05, as amended, is hereby further amended thereto by the following: Column 1 Highway Delete Schedule 14 Community Safety Zones Column 2 Column 3 Limits (From/To) Prohibited Times or Days Glenanna Road Heathside Crescent to Anytime Brookshire Square 275 By-law No. ATTACHMENT # 1 D_ = o IZEP9l3TMIG-7 I t - t o° sof �. Page 2 Column 1 Highway Add Schedule 14 Community Safety Zones Column 2 Column 3 Limits (From/To) Prohibited Times or Days Major Oaks Road Middleton Street to Anytime Hollyhedge Drive Oklahoma Drive 30 metres west of Eyer Anytime Drive to Leaside Street Glenanna Road Heathside Crescent to Anytime Huntsmill Drive Bushmill Street Liverpool Road to Anytime Maple Ridge Drive By-law passed this 25th day of June, 2018. 276 David Ryan, Mayor Debbie Shields, City Clerk 6-4 ,0/ DICKERING Report to Executive Committee Report Number: ENG 12-18 Date: June 18, 2018 From: Richard Holborn Director, Engineering Services Subject: School Crossing Guard Program - Quotation No. Q-14-2018 - File: A-1440 Recommendation: 1. That Quotation No. Q-14-2018 submitted by Neptune Security Service Inc. in the total amount of $1,213,620.00 (HST included) with a net project cost of $1,092,903.00 (net of HST rebate) be approved for the one year period from September 2018 to June 2019, with an option in favour of the City to extend the contract on the same terms and conditions for an additional term of up to two additional one year periods; and 2. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The current contract for the administration of the school crossing guard program will expire on June 30, 2018. Quotation No. Q-14-2018 was issued on Thursday, April 12, 2018 and closed on Thursday, May 3, 2018 with two bidders responding. The low bid in the amount of $1,213,620.00 (HST included), submitted by Neptune Security Service Inc., is recommended for approval. Please note that the total contract amount stated in Recommendation No.1 is for a full 3 year period should the City exercise its option to renew after year 1 In accordance with Section 06.11 of the Purchasing Policy, 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 $250,000, the Manager may approve the award, subject to the approval of the Director, Treasurer, CAO and Council. Financial Implications: The annual cost for the provision of the school crossing guard program is provided for in account 2230.2399.0000. In the 2018 Current Budget, costs were estimated for the period of September 2018 to December 2018 for the new contract in the amount of $223,872.00 including net HST. Based on the bid received from Neptune Security Services Inc., savings in the amount of $86,292.00 including net HST will be realized in 2018. 277 ENG 12-18 Subject: School Crossing Guard Program Quotation No. Q-14-2018 June 18, 2018 Page 2 1. Quotation Amount Quotation No. Q-14-2018 Quotation Amount HST (13%) Gross Quotation Amount Year 1 2018/2019 $338,000.00 Option Year 2 2019/2020 $368,000.00 Option Total Year 3 (3 years) 2020/2021 $368,000.00 $1,074,000.00 139,620.00 $1,213,620.00 2. Total Project Cost Quotation No. Q-14-2018 Quotation Amount (3 Years) Total Quotation Amount (excluding taxes) HST (13%) Gross Project Cost HST Rebate (11.24%) Net Project Cost $1,074,000.00 1,074,000.00 139,620.00 1,213,620.00 (120,717.00) $1,092,903.00 3. Approved Source of Funds 2018 Current Budget (Year 1) Quotation No. Q-14-2018 Account Code Year 1 * 2230.2399.0000 Budget $529,152.00 Required $442,860.00 * The budget amount of $529,152.00 and the required amount of $442,8660.00 are a blend of 6 months from Tender No. T-8-2015 and 4 months from Quotation No. Q-14-2018. Project Cost under (over) approved funds (Year 1) $86,292.00 Discussion: The City of Pickering currently contracts the placement of 35 school crossing guard stations, the locations of which are outlined on the attached map (Attachment 1). The current contract for the supply and administration for school crossing guard services, Tender No. T-8-2015, will expire on June 30, 2018. The service provider, Staffing Services, was awarded the contract for the 2015/2016 school year and was extended for the optional second (2016/2017) and third (2017/2018) school years. Quotation No. Q-14-2018, School Crossing Guard Program, was issued on Thursday, April 12, 2018 and closed on Thursday, May 3, 2018 with 2 bidders responding. The low bid in the amount of $1,213,620.00 (HST included) for 3 years, submitted by Neptune Security Service Inc., is recommended for approval. 278 ENG 12-18 June 18, 2018 Subject: School Crossing Guard Program Quotation No. Q-14-2018 Page 3 The City's Health & Safety Regulation form and current Certificate of Clearance issued by the Workplace Safety & Insurance Board has been submitted by Neptune Security Service Inc. The Certificate of Insurance has been reviewed by the Manager, Budgets & Internal Audit and is deemed acceptable. The following items submitted by Neptune Security Service Inc. have been reviewed and are deemed acceptable by the Manager, Capital Projects & Infrastructure: • provided references • proposed contract implementation scheme • policy/practice regarding absenteeism and vacations • policy/practice regarding training of both guard and supervisory staff Quotation No. Q-14-2018 maintains the current number of crossing guard stations and conditions of service for year 1, which is the 2018/2019 school year (September 2018 to June 2019). The term of this contract is to include 3 school years from September 2018 to June 2021 inclusive. Each subsequent school years' service is subject to acceptable health and safety documentation and satisfactory performance evaluation of the prior years' service. The City reserves the right not to extend to the subsequent school year, should the requested documentation set out in Appendix D = Request for Quotation Particulars, Material Disclosures, of the Quotation document not be acceptable and/or the performance evaluation not be acceptable, if in so doing the best interests of the City will be served. In conjunction with staffs review of the contractor's previous work experience, check of references submitted, and review of relevant documentation during the evaluation stage, the quotation is deemed acceptable. Upon careful examination of the quotation and relevant documents received, the Engineering Services Department recommends the acceptance of the low bid submitted by Neptune Security Services Inc. for Quotation No. Q-14-2018 in the total amount of $1,213,620.00 (HST included) for three years, and that the total net project cost of $1,092,903.00 (net of HST rebate) be approved. Attachments: 1. School Crossing Guard Program Location Map 2. Supply & Services Memorandum dated May 3, 2018 279 ENG 12-18 Subject: School Crossing Guard Program Quotation No. Q-14-2018 Prepared By: // 7 Nathan Emery Coordinator, Traffic Operations ./ ( Scott ooker Manager, Capital Projects & Infrastructure Ray Rodrigues Manager, Supply & Services NE:mjh June 18, 2018 Page 4 Approved/Endorsed By: Richard Halban, P,Eng. D -ctor, Engineering Services Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer 280 1 \ CHERRYWOOD `,- LEGEND Crossing Guard Location 22 Site # Engineering Services Departrnent 1:4000 Sept, 2017 School Crossing Guard Program Existing school crossing locations a4 PICKERING A }'TA HMEN`t # h EPOR DICKERING Memo To: Richard Holborn May 3, 2018 Director, Engineering Services From: Jacqueline Charles Senior Purchasing Analyst, Supply & Services Copy: Administrative Assistant, Engineering Services Ray Rodrigues, Manager, Supply & Services Subject: Quotation No. Q-14-2018 School Crossing Guard Services Closed: Thursday, May 3, 2018, before 12:00 noon - File: F-5300-001 Quotation Q-14-2018 was advertised on the City's website on April 12, 2018. Two companies have submitted a bid for this project. There are three stages in the evaluation process which are outlined in Part 2 — Evaluation of Quotations of the Terms of Reference. Stage I. determines which submissions satisfy all the mandatory submission requirements and provides Respondents the opportunity to rectify deficiencies. One of the submissions were deemed non-compliant with mandatory submission criteria and were provided the opportunity to rectify any deficiencies. One Respondent satisfied the mandatory requirements within the rectification period. Two quotations proceeded to Stage II, which consists of a review of the quotations to determine whether the mandatory technical requirements as set out in Section C of the Request for Quotation Particulars (Appendix D) have been met which is not applicable for this quotation. Two quotations proceeded to Stage III, which consists of an evaluation of the submitted pricing in accordance with the price evaluation method set out in the Pricing Form (Appendix C). Neptune Security Service Inc. is the top ranked Respondent with a submitted price of $338,000.00 (HST Excluded). A budget of $600,000 was provided to Supply & Services for this procurement. In accordance with Appendix D — Request for Quotations Particulars, Item B: Material Disclosures, the following documents will be requested from Neptune Security Service Inc. a) The Company's proposed contact implementation scheme; b) The Company's policy/practice regarding absenteeism and vacations; c) The Company's policy/practice regarding training of both guard and supervisory staff; 282 A TACHMENT # 2' _ REPOR #? '4"J ? -15 d) the Company's certification of confirmatiurro-ruu=7Tid supervisory staff successful completion of a Police Record Check e) The company's certification of confirmation of Guard and supervisory staff successful completion of the Company's Guard training program f) The City's Health and Safety Form completed, currently dated and signed; and g) The City's certificate of insurance or approved alternative form shall be completed by the bidder's agent, broker or insurer. Please advise if Supply & Services is to proceed with this task. In accordance with Purchasing Policy Item 06.04, the authority for the dollar limit as set out below excludes HST. 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 $250,000, the Manager may approve the award, subject to the approval of the Director, Treasurer, CAO and Council. Subject to receipt of approvals on Health & Safety and insurance documents, please provide your recommendation in report form, as well as an on-line requisition. Please direct all enquiries to Supply & Services. Respondents will be advised of the outcome when the contract has been awarded. If you require further information, please contact myself or a member of Supply & Services. JC Attachment(s): (2) Quotation No. Q-14-2018 Page 2 of 2 School Crossing Guard Services 283 DICKERING Report to Executive Commitee Report Number: ENG 13-18 Date: June 18, 2018 From: Richard Holborn Director, Engineering Services Subject: Transfer of Sideline 26 Road Allowance Taunton Road to Whitevale Road - File: A-1440 Recommendation: 1. That the road allowance know as Sideline 26 between Taunton Road and Whitevale Road, being Part of the Road Allowance between Lots 26 and 27, Concession 4, designated as Part 1, Plan 40R-29922 and Part 1, Plan 40R-29923 be declared surplus to the needs of the City of Pickering and be transferred to the Regional Municipality of Durham for nominal consideration; and 2. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: As the construction of Whites Road (Regional Road #38) north of Taunton Road, within the Sideline 26 road allowance, is anticipated to commence in summer 2018, it is appropriate to transfer the road allowance to the Regional Municipality of Durham to facilitate the works and future maintenance responsibilities. Financial Implications: There is no direct financial implications arising from this report. The 4.1 lane km of existing gravel surface road will be removed from the City's inventory and there will no longer be a requirement for the City to maintain this road. Discussion: The planning of the Seaton Community through the Central Pickering Development Plan (2006), the Central Pickering Development Plan Class Environmental Assessment for Regional Services in the City of Pickering (2014), and the approval of the Neighbourhood Plan for Seaton through Official Plan Amendment 22 by the Ontario Municipal Board (2013), recognized the need for a Regional Road network to service Seaton. One such Regional Road was the extension of Whites Road to Highway 7, from its existing northern limit at Taunton Road. It was determined that the alignment of future Whites Road would follow the existing alignment of Sideline 26 from Taunton Road to Whitevale Road, and would follow a slightly different north/south alignment from Whitevale Road to Highway 7, to eliminate the jog at Whitevale Road. The design of Whites Road from Taunton Road to Highway 7 is nearing completion, and road construction coordinated and administered by the Seaton Landowners Group is anticipated to 284 ENG 13-18 June 18, 2018 Subject: Transfer. of Sideline 26 Road Allowance Taunton Road to Whitevale Road Page 2 commence in summer 2018. As such, it is appropriate that the road allowance be transferred to the Region of Durham at this time. Reference Plans have been prepared and registered which describe the Sideline 26 road allowance for conveyance purposes. Sideline 26 is legally described as Part of the Road Allowance between Lots 26 and 27, Concession 4, designated as Part 1, Plan 40R-29922 and Part 1, Plan 40R-29923. Staff have reviewed the Reference Plans and deemed them acceptable. Sideline 26 is currently temporarily closed to traffic between Taunton Road and Whitevale Road due to municipal servicing taking place along Taunton Road that effectively closed off the intersection. The road will, remain closed until completion of reconstruction to the future Whites Road. City of Pickering staff and Region of Durham staff are having discussions regarding the road rationalization. initiative, and Sideline 26 between Taunton Road and Whitevale Road was recognized as a candidate road for transfer. As road rationalization discussions are still ongoing and may take some time to conclude, the transfer of Sideline 26 to the Region of Durham is being done outside .of the road rationalization process as time is ofthe essence. Attachments: 1. Location Map Prepared/Approved/Endorsed By: Rich rd Holb.rn, P.Eng. D ector, Engineering Services RH:mjh Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer de/4a 4, Loies 285 ATT : : a `-NT#�, / TORCP®R; 'Jii ¥7 /(9-/ 8 # Of X BruHIGHWAY? N ghamZ _— Hw rr III IIIII , (�g III I Ce o--.r Lam— I HIGHWAY.407 1 N I W Z 1-1 E5 ❑ O IIQ c Whit ale 2 o �N r .... + nn— Z -. W z ,; X111( ■ WI iI I iii Tr" W D 'I le o o / HI LE ROAD �z1 �KIS 6 U J ` 0 11.1° CO CO W Jo- _ z SUBJECT Li7 111 LANDS E D N LUZ J W Ali LILA / IN mow TAUNTON ROAD II Cn SILKST� €uLS ��4�w 8 FOXTAIL!CRES�, 11 In , '40 7)1 1.11 Volls011 4k4F-M1 PM LI- 0 CC O II Y Z 0 r H 1 1 CO W 2 CO 0 I j ( IIT cc Cherrywood i r } n, r. ; .-- F7- _ ----ti-� THIRD' CONCESSION ROAD ,---\-----=- �'L/ �-I • # 111 1 11 I u ---- Engineering Services Engineering CilY 4 Department Location Map P I C KE R IN G SCALE: 1:28,985 DATE May. 31, 2018 286 DICKERING czy Report to Executive Committee Report Number: ENG 14-18 Date: June 18, 2018 From: Richard Holborn Director, Engineering Services Subject: Tender No. T-13-2018 - Breezy Drive, Waterfront Trail and Forestbrook Park — Road and Pathways Reconstruction - File: A-1440 Recommendation: 1. That Tender No. T-13-2018 — Breezy Drive, Waterfront Trail and Forestbrook Park — Road and Pathways Reconstruction, as submitted by Bond Paving & Construction Inc. in the total tendered amount of $641,276.13 (HST included) be accepted; 2. That the total gross project cost of $760,067.00 (HST included), including the tender amount and other associated costs, and the total net project cost of $684,464.00 (net of HST rebate) be approved; 3. That Council authorize the Director, Finance & Treasurer to finance the net project cost of $684,464.00 as follows: a) The sum of $200,000.00 as approved in the 2018 Sidewalks Capital Budget to be funded by a transfer from the Federal Gas Tax Reserve Fund; b) The additional sum of $17,510.00 to be funded by a transfer from the Federal Gas Tax Reserve Fund; c) The sum of $349,879.00 as approved in the 2018 Roads Capital Budget to be funded by a transfer from the Roads & Bridges Reserve Fund; d) The sum of $117,000.00 as approved in the 2018 Parks Capital Budget to be funded by an internal loan for a five-year term, and $75.00 to be funded by property taxes; and 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: As part of the 2018 Sidewalks, Parks and Roads Capital Budgets; Breezy Drive, Waterfront Trail and Forestbrook Park — Road and Pathways Reconstruction were approved as construction projects. Tender No. T-13-2018 was issued on Thursday, April 26, 2018 and dosed on Wednesday, May 16, 2018 with seven bidders responding. The low bid of $641,276.13 (HST included) submitted by Bond Paving & Construction Inc. is recommended for approval. The total gross project cost is estimated at $760,067.00 (HST included) with an estimated total net project cost of $684,464.00 (net of HST rebate). 287 ENG 14-18 Subject: Tender No. T-13-2018 Breezy Drive, Waterfront Trail and Forestbrook Park — Road and Pathways Reconstruction June 18, 2018 Page 2 Financial Implications: 1. Tender Amount Tender No. T-13-2018 HST (13%) Total $567,501.00 $73,775.13 $641,276.13 2. Estimated Project Costing Summary Tender No. T-13-2018 — Tender for Breezy Drive, Waterfront Trail and Forestbrook Park- Road and Pathways Reconstruction Associated Costs Materials Testing Project Signage Project Contingency (15%) Sub Total - Costs HST (13%) Total Gross Project Costs HST Rebate (11.24%.) Total Net Project Costs $567,501.00 15,000.00 5,000.00 85,125.00 672,626.00 87,441.00 $760,067.00 (75,603.00) $684,464.00 3. Approved Source of Funds — Roads Capital Budget Expense Code 5323.1806.6255 5320.1808.6251 5780.1807.6183 Total Source of Funds Budget Required Federal Gas Tax Reserve Fund $200,000.00 $217,510.00 Roads & Bridges Reserve Fund 400,000.00 349,879.00 Internal Loan (5 year) 150,000.00 117,000.00 Property Taxes 0.00 75.00 $750,000.00 $684,464.00 Net project costs (over) under approved funds $65,536.00 288 ENG 14-18 June 18, 2018 Subject: Tender No. T-13-2018 Breezy Drive, Waterfront Trail and Forestbrook Park — Road and Pathways Reconstruction Page 3 Discussion: As part of the 2018 Roads Capital Budget, Breezy Drive, Waterfront Trail and Forestbrook Park — Road and Pathways Reconstruction, were approved as construction projects. Tender No. T-13-2018 was issued on Thursday, April 26, 2018 and closed on Wednesday, May 16, 2018 with seven bidders responding. The low bid submitted by Bond Paving & Construction Inc. is recommended for approval. The total gross project cost is estimated at $760,067.00 (HST included), with an estimated total net project cost of $684,464.00 (net of HST rebate). References for Bond Paving & Construction Inc., a list of subcontractors and the Waste Management Plan have been reviewed and are deemed acceptable by the Manager, Capital Projects and Infrastructure. The City's Health & Safety Regulation form and current Certificate of Clearance issued by the Workplace Safety & Insurance Board has been submitted by Bond Paving & Construction Inc. The Certificate of Insurance has been reviewedby the Manager, Budgets & Internal Audit and is deemed acceptable. In conjunction with staffs 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 Services Department recommends acceptance of the low bid submitted by Bond Paving & Construction Inc., for Tender No. T-13-2018 in the amount of $641,276.13 (HST included), and that the total net project cost of $684,464.00 be approved: Attachments: 1. Supply & Services Memorandum dated May 17, 2017 2. Record of Tenders Opened and Checked 3. Location Map 289 ENG 14-18 June 18, 2018 Subject: Tender No. T-13-2018 Breezy Drive, Waterfront Trail and Forestbrook Park — Road and Pathways Reconstruction Page 4 Prepared By: Scott Booker Manager, Capital Projects & Infrastructure Ray Rodrigues Manager, Supply & Services SB:mjh Approved/Endorsed By: Ri9 and Holborn, P. Eng. Director, Engineering Services Stan Karwowski, M • , PA, CMA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer 412-015 290 Gird DICKERING A` `tACHMENT# �_—..`fOREPOP # r(Ci 1I 1g of `2 Memo To: Richard Holborn May 17, 2018 Director, Engineering Services From: Ray Rodrigues Manager, Supply & Services Copy: Administrative Assistant, Engineering Services Subject: Tender No. T-13-2018 Tender for Breezy Drive, Waterfront Trail and Forestbrook Park — Road and Pathways Reconstruction Closing: Wednesday, May 16, 2018 — 2:OOpm File: F-5400-001 Tender No. T-13-2018 was advertised on the City's website on April 26, 2018. 7 companies have submitted a bid for this project. A copy of the Record of Tenders Opened and Checked used at the public tender opening is attached. Tenders shall be irrevocable for 60 days after the official closing date and time. Purchasing Procedure No. PUR 010-001, Item 13.03 (r) provides checking tendered unit prices and extensions unit prices shall govern and extensions will be corrected accordingly, which has been completed below. The unsuccessful Bidder's tendering deposit, other than a bid bond, shall be returned to the applicable bidders as provided for by Purchasing Procedure No. PUR 010-001, Item 13.03 (w). Three (3) bids have been retained for review at this time and are attached. Pursuant to Information to Bidders Item 26 and Tendering Specifications Item 20, the following documentation will be requested of Bond Paving and Construction Inc. for your review during the evaluation stage of this tender call. Please advise if Supply & Services is to proceedwith collecting the following documentation: (a) A copy of the City's Health and Safety Policy form currently dated and signed; (b) A copy of the current Clearance Certificate issued by Workplace Safety & Insurance Board; (c) The City's certificate of insurance or approved alternative form completed by the Bidder's agent, broker or insurer; and (d) Waste Management Plan. A budget of $600,000.00 was provided to Supply & Services for this procurement. If the recommendation to award exceeds the budgeted amount, refer to Financial Control Policy Item 11 for additional instructions. 291 A`} _ ACHNENT# ?.0 PO # � _C� iy - I 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 $250,000, the Manager may approve the award, subject to the approval of the Director, Treasurer, CAO and Council. • Please include the following items in your report: 1. if Items (a) through (b) noted above are acceptable to the Co-ordinator, Health & Safety or designate, if required; 2. if Item (c) is acceptable to the Manager, Budgets & Internal Audit; 3. if the list of subcontractors is acceptable to Engineering Services; 4. if Item (d) is acceptable to engineering Services; 5. any past work experience with low bidder Bond Paving and Construction Inc. including work location; 6. without past work experience, if reference information is acceptable to Engineering Services; 7. the appropriate account number(s) to which this work is to be charged; 8. the budget amount(s) assigned thereto; 9. Treasurer's confirmation of funding; 10. related departmental approvals; and 11. related comments specific to the project. After receiving Council's approval, an approved "on-line" requisition will be required to proceed. Enquiries can be directed to the City's website 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. RR Attachments May 17, 2018 Tender No. T-13-2018 Tender for Breezy Drive, Waterfront Trail and Forestbrook Park — Road and Pathways Reconstruction 292 Page 2 PICKERI NG Record of Tender Description: Breezy Drive, Waterfront Trail and Tender No.: T-13-2018 Wednesday, May 16, 2018 Approx. 2:15 pm Local Time Date: Time: City of Pickering Tenders Opened and Checked Forestbrook Park — Road and Pathways Reconstruction Bidder Name Total Tendered Amount Bidder Sign In Comments IPAC Paving Ltd. $ 7 ��(Tq 2 ( /1 - T i � Appco Paving Ltd. $ �0 8 / G ct 7 , 6-2 Bond Paving and Construction Inc. ' $ , LH �q.(, , / 3 Montgomery MacEwan Contracting + $ ii p I cF , q -7 0 . 6 t . Elirpa Construction & Materials Ltd. $ i I �5c 92 ,/ / iwio Ashland Paving Ltd. $ ?It 3e7 6t-) . tee CSL Group Ltd. 4' q q / 1 (D . ck5 City Staff Pres - n "The inforridation is strictly preliminary, pending review and verification of conformance to_terms, conditions and specifications. CLg DICKERINGof rTACHMENT# TO REPORT# E C1 i L- i 8 Engineering Services Department Tender No. T-13-2018 Breezy Drive, Waterfront Trail and Forestbrook Park — Road and Pathways Reconstruction Project Area No. 1 Location Map — Breezy Drive 294 rte 4 DICKERING A TACHMENT# �_ TO REPORT# t £3 gf Engineering Services Department Tender No. T-13-2018 Breezy Drive, Waterfront. Trail and Forestbrook Park — Road and Pathways Reconstruction Project Area No. 2 .o 0 Ce0 00 y s SUBJECT AREA a -- STATjON PICKERINv GENEATING Location Map — Waterfront Trail 295 c4 e),/ DICKERING ATTACHMENT# TO REPORT#_r' 11 -1 - Engineering L -{ Engineering Services Department Tender No. T-13-2018 Breezy Drive, Waterfront Trail and Forestbrook Park — Road and Pathways Reconstruction Project Area No. 3 GRAF'TOIV CO tJ�OUNT�L^ FORE PEGSW u U� R S. SUBJECT PARK fz' 0 0 REDBIRD l ee G00'R�c S \/ N V / / 1.4 PLS 0- 7 7 N CRESCENT CLENANN ce 296 D 7j L`y ND uP�gL�nL I.RCs���� '60 3 PQ 73 CAD \�O O 2 Q \.� ) s\ro ° i----\ r� Location Map — Forestbrook Park 0 /- Z r TVE PART wq-plc Ip rr' 1s'NooL o r�`�� Gtr „fi DICKERING Report to Executive Committee Report Number: ENG 16-18 Date: June 18, 2018 From: Richard Holborn Director, Engineering Services Subject: Proposed Road Occupancy By-law File: A-1440 Recommendation: 1. That Report ENG 16-18 of the Director, Engineering Services regarding the proposed Road Occupancy By-law be received for information; 2. That City Council authorize staff to consult with utility companies such as Bell, Rogers, Enbridge and Veridian, and solicit their input and comments on the draft Road Occupancy By-law, generally in the form attached to this report; That following the receipt of comments, staff submit a draft by-law with final recommendations for Council consideration at the September 11, 2018 Executive Committee meeting; and That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The City of Pickering does not currently have a Road Occupancy By- law. Any party requiring access to perform work within the City's rights -of -ways (road allowances), including contractors working for the City, utility companies or contractors working on their behalf, are required to apply for a Road Occupancy Permit which states all the standard terms and conditions and the applicants responsibilities. A Road Occupancy By-law will support the various permits issued for work within the City's rights - of -ways, establish enforcement mechanisms, and establish mechanisms to recover costs to repair damages or have restoration completed to the City's satisfaction. Financial Implications: The recommendations within this report do not present any financial implications. 297 ENG 16-18 June 18, 2018 Subject:. Proposed Road Occupancy By-law Page 2 Discussion: In the absence of a road occupancy bylaw, the City of Pickering relies on the standard terms, conditions and requirements that are included in the Road Occupancy Permit in order to have work performed on City rights -of -ways (road allowances) in an acceptable manner. Currently, any party requiring access to work within City rights -of -ways must apply for a Road Occupancy Permit (see Attachment 1). The permit states the requirements of the applicant, terms of the occupancy, responsibilities with respect to notifications, restoration, insurance and working hours among other things. The permit process also allows staff to track who is in certain rights -of - ways, the duration of their work, when restoration is scheduled to be complete, and who is potentially responsible for uncompleted work or damage. There are various sections within the Municipal Act, 2001 that give authority for municipalities to pass by-laws with respect to highways under their jurisdiction including prohibiting activities such as excavating and construction unless a permit is obtained from the municipality for those activities. Many municipalities have passed Road Occupancy By-laws to regulate and govern the activities within highways under their jurisdiction including; The Town of Ajax, The Municipality of Clarington, The Town of Whitby, The City of Oshawa and The City of Markham. The Regional Municipality of Durham is proposing a Road Occupancy By-law to its Committee of the Whole and Council in June, 2018. City staff have reviewed these existing by-laws in preparation of the proposed by-law attached to this report (Attachment 2). The proposed Road Occupancy By-law has received input and has been reviewed by staff in the Engineering Services, Corporate Services and Community Services departments. Staff is recommending that consultation with utility companies be conducted as a next step they represent a large number of the Road Occupancy Permits that are issued. It is anticipated that this consultation and review can be conducted over the next two months and that a final draft by-law can be prepared for the September 11, 2018 Executive Committee meeting. Proposed Road Occupancy By-law Highlights The proposed City of Pickering Road Occupancy By-law contains general administrative enforcement regulations, controls, safeguards and penalties in order to protect the general public and the City's risk while ensuring that work carried out in our rights -of ways is carried out to City standards. Under the proposed by-law a Road Occupancy Permit is required: • To construct within a right-of-way • To move any oversize or overweight vehicle, object or load on any right-of-way I To close a highway or portion of a highway • To obstruct a highway or portion of a highway 298 ENG 16-18 June 18, 2018 Subject: Proposed Road Occupancy By-law Page 3 Application for a Road Occupancy Permit also requires the applicant to provide: • An application fee • A road cut degradation fee (if applicable) • A traffic plan (if applicable) • Securities for damage and restoration • Insurance and indemnification • Emergency contact details The Road Occupancy By-law contains language regarding Road Occupancy Permit conditions, construction conditions, temporary and permanent reinstatement, roadway obstructions, enforcement, and penalties and offences. Attachments: 1. Road Occupancy Permit 2. Draft Road Occupancy By-law Prepared/Approved/Endorsed By: Ric,ard Holb•rn, P. Eng Djrector, Engineering Services RH:mjh Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer 41 loc e' 299 `N�I��, �4Road Occupancy Permit � 4 ATTACHMENT#_ TO REPORT'#_e —Lot Permit# P1CKER1NG Applicant Information First Name Company Name (if applicable) Street Address City Last Name Province Telephone # Fax # Email Address Work Location Information - One Application Per Street/Location Street Between Postal Code Mobile # Building # (if applicable) And Work Description Information Description Utility Service Owner (if applicable) Duration (check appropriate) Work Type (check appropriate) ❑ Construction Contract # ❑ Municipal Consent # ❑ Short (1 day or less) ❑ Emergency Repair ❑ Utility Service Connection or Repair ❑ Object/Waste Bin Storage ❑ Oversize and/or Heavy Load ❑ Pool Install or Landscape Work ❑ Other (please specify) Work Schedule Start Date Completion Date Restoration Date Notification If the road is restricted to traffic in any way, the applicant is required to notify all agencies as identified in the Road Occupancy Permit Terms & Conditions - Item #1. Authorization I/We agree to the terms and conditions as attached and set forth on this application and assume all costs incurred by the Corporation of the City of Pickering, liability for all damages which may be incurred and to indemnify and save harmless the City from any actions, claims, suits or demands made against the City by any persons arising from the issuance of this permit and as a•result of the road occupancy. ❑ Medium (2 to 7 days) ❑ Long (over 7 days) Work Details (check appropriate) Road Closure Required ❑ Yes ❑ No Lane Closure Required ❑ Yes ❑ No Road Cut ❑ Yes ❑ No Sidewalk Removal ❑ Yes ❑ No Traffic Control Plan ❑ Detour Plan ❑ I❑ HOUSE# Q LOT,# I El HOUSE 11 Lor ti Signature of Applicant Date Office Use Approved By Date Eydd 703-02/15 Revised 17/03/01 Date Application Received Fee Required ❑ Yes ❑ No Fee Paid ❑ Yes ❑ No cited PICKERING ATTACHMENT(#�! �TOREPORT#rRoad Occupancy Permit . , of 3 Terms & Conditions 1. If the road is restricted to traffic in any way, the applicant(s) is required to notify the following agencies 48 hours in advance and inform them as to the date of commencement, scope of work and completion of occupancy. Fire Administration Durham Regional Police Durham Region Transit (DRT Westney Division - Ajax/Pickering) Durham Student Transportation Services (DSTS) Ambulance Services CACC Oshawa City of Pickering (24 hour line) 905.683.3050 (Option 4) 1.888.579.1520 1.866.247.0055 1.800.240.6943 905.430.5542 905.683.7575 2. When applicable, the applicant(s)shall notify all Utilities and obtain any necessary utility service locates and/or approvals. 3. All work to be conducted in conformance to the conditions and requirements of the Ministry of Transportation, Ontario Traffic Manual Book 7 - Temporary Conditions, Ministry of Labour, Ontario Health and Safety Act and any other applicable legislative requirements. 4. All barricades, signs, signals and traffic control devices associated with the work shall be supplied, erected, and maintained by and at the expense of the applicant. Signs and devices to be used in conformity to the project trafficcontrol plan and to the satisfaction of the City of Pickering. 5. Excavated material may not be piled in such a manner as to obstruct vehicular or pedestrian traffic. Pedestrian access to all properties shall be maintained at all times. Excavations left open at the end of the work day shall be suitably barricaded and marked to prevent an unsafe situation to adjacent property owners and the general public. 6. Clay in fluid state, frozen material, organic material, silt or mud or any material considered "too wet" to adequately compact shall be excluded from backfill. This may require that part or all of the excavated material be replaced by granular, sand of crushed stone backfill. All material excavated to a depth of 1.2 metres (4 feet) below the finished road surface shall be kept separate from any material below this depth. These two layers of material must be replaced in the trench in the same layers as they were found prior to excavation. 7. Backfill material shall be compacted in layers, the maximum thickness being 300mm (12 inches) for general backfill and 150mm (6 inches) for granular base course material. If undue settlement occurs within two years of placement, the applicant will be required, if so deemed and requested by the City, to repair the settlement at the applicant's expense. 8. In the travelled portion of the road, if the native backfill material exhibits conditions as noted under item 5 above and requires replacement, the trench walls must be excavated to a minimum of 2.1 (Horizontal:Vertical) slope to a maximum depth of 1.2 metres (4 feet) below the road surface. Likewise, the depths of existing granular base course materials shall be replaced in kind. ENG 1704-02/15 Page § di 3 q-7AcHMFNT# I-_ TOREP©RT# ry-// Road Occupancy Permit C40Terms & Conditions PICKERING 9. Under no condition shall any of the previously excavated material from the trenches be used as Class "A" or "B" granular base course material. 10. All sodded areas, ditches, culverts and driveway entrances shall be repaired or replaced promptly. All surplus material shall be removed, the area cleaned and returned to its original condition. A temporary asphalt patch with a minimum thickness of 50mm (2 inches) shall be placed in all areas where asphalt or surface treatment has been removed. 11. All underground utilities to be placed in conformity to municipal standards with specific regard for, and compliance with the following minimum depth of cover requirements: Gas - 0.9m (3 feet) Telephone, Television, Internet & Communication - 0.6m (2 feet) Hydro - 0.6m (2 feet) Storm Sewer - 1.8m (6 feet) Splice connection repairs are permitted at existing bury depths. 12. If the applicant should fail to meet the requirements and conditions of the Road Occupancy Permit, the City may take actions as deemed necessary to ensure the works comply with them, as well as to complete any outstanding required maintenance repairs and restoration works. All actions carried out by the City of Pickering to take corrective action will be at the applicant's expense and may include administrative fees associated with the work. 13. Where a time extension is required, the holder of this permit shall apply for such extension at least 24 hours in advance of the stated date of permit expiration. Time extensions must be authorized by the City before taking effect. Failure to comply will render this period void. 14. All road closings must be conspicuously posted a minimum of two working days in advance of the start of the closures, stating the date of closing, work scope, and duration. 15. If work site conditions interfere with normal sanitation collections, the applicant must notify the City and make alternative arrangements for garbage service at the applicant's expense. 16. The City may impose additional site specific terms and conditions beyond those noted, as follows: The fee for a Road Occupancy Permit is calculated in accordance with the City's Fee Schedule By-law. We accept cash or cheque only. Please make cheques payable to the City of Pickering. Personal information contained on this form is collected pursuant to the Municipal Freedom of Information and Protection of Privacy Act. This information is collected to process your Application for a Road Occupancy Permit. Any questions related to the collection of this information should be directed to the City Clerk, One The Esplanade, Pickering, ON L1V 6K7, 905.420.4611. Alternate formats available upon request at 905.683.7575. En 704-02/15 Page 3 of 3 DRAFT ATTACHMENT# TO REPORT# i _-i8 The Corporation of the City of Pickering By-law No. Being a By-law to regulate activity on municipal right-of-ways and municipal property within the City of Pickering. Whereas Section 118, of the Municipal Act, 2001, provides that a municipality may, regulate the excavating, construction and use of trenches and may by by-law prohibit same unless a permit is obtained from the municipality which may also impose conditions with respect to the permit, including requiring the submission of plans; Now Therefore the Council of the Corporation of the City of Pickering hereby enacts as follows: 1. Definitions (1) In this By-law: (a) "activity" means the temporary occupancy of a right-of-way for any purpose outside its normal intended use by the City, Utility Company, or person(s); (b) "Applicant" means any person who applies for a Road Occupancy Permit; (c) "boulevard" means all parts of a right of way except any roadway, shoulder or sidewalk; (d) "City or City of Pickering" means The Corporation of the City of Pickering or the geographic area of Pickering, as the context requires; (e) "City of Pickering Standards" means The City of Pickering Standards, as amended from time to time, and are intended as guidelines for land development and City projects to aid in providing uniform designs throughout the Municipality and are to be used in conjunction with Ontario Provincial Standard Drawings (O.P.S.D.) and Ontario Provincial Standard Specifications (O.P.S.S.); "construct and or construction" includes the erection, alteration, repair, dismantling, demolition, structural maintenance, land clearing, earth moving, grading, excavating, the laying of pipe and conduit whether above or below ground level, street and highway building, application of concrete, equipment installation and the alteration and the structural installation of construction components and materials in any form or for any purpose; "construction equipment" means any equipment, tool or device designed or capable of use in construction or material handling, including but not limited to pile drivers, bulldozers, tractors, excavators, trenchers, cranes, derricks, loaders, scrapers, pavers, generators, off highway (f) (g) 303 304 By-law No. ATTACI-MENT# TOREPORT# �"i►iljily-i1 of® Page 2 haulers or trucks, ditchers, compactors and rollers, pumps, concrete mixers and graders; (h) "Contractor" means a person who does work; (i) "Director" means the director of EngineeringServices or an authorized representative; (j) "Emergency Work" means work undertaken for the immediate health, safety or welfare of the inhabitants of the City or for the preservation, protection or restoration of property. (k) "highway" has the same meaning as in subsection 1(1) of the Highway Traffic Act and includes unopened and unassumed road allowances; "Inspector" means a Municipal Law Enforcement Officer, Provincial Offences Officer, Police Officer, Engineering Inspector or any other City staff delegated to enforce the By-law; (m) "Municipal Consent or Consent' means the written consent of the Engineering Department, with or without conditions, for access to and use of the Municipality's Rights -of -Way, subject to the obtaining of a Road Occupancy Permit as applicable; (n) "obstruction" includes, but is not limited to any item, materials, equipment; construction vehicle, disposal or storage bin, etc. which has been placedon a city right of way; (o) "O.P.S.S:" means Ontario Provincial Standard Specifications, as amended; (p) (I) "owner" means any person, business, agency, corporation or organization which conductst`an activity which would require municipal awareness and. approval of the activity by the issuance of a permit; (q "Person" includes a corporation and the heirs, executors, administrators or other legal representatives of a person to whom the context can apply according to law; (r) "right of way" means municipal property designated as Highways, Roadways, Lanes, Pathways and Walkways and includes features therein such as curbs,'shoulders, boulevards, and drainage ditches; (s) "roadway" means the part of a right of way that is improved, designed or ordinarily used for vehicular traffic, but does not include the curb, shoulder or boulevard; (t) "road cut" means a surface or subsurface cut in any part of a right of way made by any means, including but not limited to any excavation, reconstruction, cutting, saw cutting, overlaying, crack sealing, breaking, boring, directional drilling, jacking or tunneling operations; As of May 31, 2018 By-law No. ATTACHMENT#TOREPORT# '7 /OW of Page 3 (u) "road occupancy" means activity conducted within a municipal right of way; (v) "Road Occupancy Permit" means written authorization issued by the City to occupy and/or perform work on a right of way; "settlement or settled" means any sinking of the surface of a road cut in relation to the grade of the adjacent undisturbed right of way; (x) "shoulder" means that part of a right of way immediately adjacent to the travelled portion of the roadway and having a surface that has been improved with asphalt, concrete or gravel for the use of vehicles; "sidewalk" means all parts of a right of way set aside for the use of pedestrians; (z) "Temporary Service Drops" means any infrastructure established to provide service to a customer until the permanent infrastructure is repaired or replaced. (aa) "Traffic Control Plan" refers to a document outlining the particulars of vehicular and pedestrian traffic management required for any work conducted in a right of way (bb) "Utility or Utilities" means any structure(s) above or below ground which exists on a right of way used for the supply of public and private services includes, but not limited to electricity, natural gas, telephone, television and internet communication as well as sanitary and storm sewer use; (cc) "Utility,Company" means any company with the authority to construct withinta Right of Way pursuant to provincial or federal legislation, By-law, franchise agreements or municipal access agreement; (dd) "vehicle" means a motor vehicle, as per subsection 1.1 of the Highway Traffic Act (ee) "Very Short Duration" shall have the same meaning as defined in the Ontario Traffic Manual Temporary Conditions Book 7, as amended; (ff) "warranty" means a guarantee by the Applicant to correct any deficiencies in relation to a Road Occupancy Permit for a period of 2 years after completion of the work; and (gg) "work of major nature or duration" means any work that requires a road cut or that extends for a period of time greater than 12 hours. (w) (y) ARofMaki :Al 7f11R By-law No. ATTACHMENT#e " TO REPORT# IW-7/fr 9 f Page 4 2. General Restrictions (1) No person shall construct, cause or permit construction within a right of way without a Road Occupancy Permit. (2) No person shall move any oversize or overweight vehicle, object or load as defined in the Highway Traffic Act; on any right of way without first obtaining a Road Occupancy Permit. No person shall close or obstruct a highway or portion of a highway to traffic unless authorized to do so by the City. No person shall fail to comply with any order issued pursuant to the provisions of this By-law. No person shall conduct any activity on a right of way except in compliance with all conditions imposed by the City upon issuance of a Road Occupancy Permit. (6) No person shall construct or conduct any activity on a right of way without a Road Occupancy Permit on site and available for inspection. 3. (1) An applicant for a Road Occupancy Permit shall: (a) Complete the prescribed application form and file it with the City not less than fifteen (15) working days in advance of construction; (b) Attach any documents required on the application form such as a Traffic Control Plan;' Pay application fee; Road Occupancy Permit Application 306 (d) Pay any securities required; (e) Provide proof of insurance which includes coverage which identifies the City as an additional insured and an endorsement to provide the City with 30 days notification of cancellation; and (f) Provide emergency contact details including a telephone number. For applications requesting one or more road cuts, the Applicant shall pay the corresponding Road Cut Degradation Fee in accordance with the current Summary of Fees & Charges. For applications requesting multiple road cuts, the City reserves the right to issue a single Road Occupancy Permit or request multiple Road Occupancy Permits for the works. As of Mav 31. 2018 By-law No. ATTACHMENT#__i __. A'OREPORT#_-1_=Nci %6.-/5 of 0-p Page 5 The Road Occupancy Permit shall become void if the work authorized by the permit is not commenced within sixty (60) calendar days of the date of issue. Applications for Road Occupancy permits relating to obstructions of a right of way are exempt from sections, 3.1(e) Work Exempt From A Road Occupancy Permit Activities of the City, The Regional Municipality of Durham, a Conservation Authority, or any other Federal, Provincial or Regional agency; Minor work of Very Short Duration which does not cause any disruption to traffic flows, does not break ground and does not alter any existing utilities. Work conducted as part of an approved subdivision, site plan, Land Division, or Draft Plan Application prior to the subdivision being assumed by the City.. Work or activity conducted in consent with Sections 41, 51, or 53 of the Planning Act and in accordance with the provision of such approval. Work or activity conducted in association with a Film Location Permit. (2) Emergency Work Emergency Work may be carried out prior to the application for a Road Occupancy Permit, provided the application is made on the same day the work is commenced, opthe next business day. Application for Extension of Existing Road Occupancy Permit S 1 ' (a) An existing Road Occupancy Permit may be extended, subject to the submission of a written request outlining any revised information and payment of the applicable fee. The City, at its discretion, may refuse to extend, or place conditions on the extension of a Road Occupancy Permit. (3) (b) 5. Road Occupancy Permit Application Refusal (1) The City may refuse'to grant a Road Occupancy Permit to any Applicant for the following: ................. . (a) previous violations of conditions of a Road Occupancy Permit, or of any provisions of this By-law; (b) nonpayment of fees or security deposits; (c) where roadway construction, reconstruction or resurfacing has occurred within the previous three years of the proposed road cut; AsofMay :11 2nlR By-law No. ArrACHMEN`i'# 'C SPORT# . 4'��� /6 -/8 6, of G Page 6 (d) a previously issued Road. Occupancy Permit is active in the area proposed by the applicant and the granting of a secondary Road Occupancy Permit would create a construction conflict, or (e) any other reason the City may determine appropriate. (2) Where a Road Occupancy Permit has been refused, the City shall notify the Applicant in writing of the reason for the refusal. 6. Road Occupancy Permit Conditions Every person who conducts, causes or permits any construction activity and/or temporary storage of materials on a right of way shall comply with the Road Occupancy Permit Conditions below; (1) Notice Requirements (a) Notify, in writing, residents and businesses impacted by work of major nature or duration as determined and directed to do so by the City, at least ten (10) working days prior to commencing work, with the following information: (a.1) description and rationale for the work; (a.2) the approximate start date; (a.3) the duration of the work; (a.4) access restrictionsand service interruptions; and (a.5) contact information' of the Contractor. (b) Notify an Inspector within 48 hours of starting work (2) Locates (3) 308 It shall be the sole responsibility of the Applicant to request and obtain underground locates as necessary. Should the Applicant cause damage to any utilities, the entire cost and responsibility of restoring such utilities shall be at the sole expense of the Applicant. Warning Devices, Barricades and Traffic Signs (a) The Applicant shall supply, erect and maintain the required warning devices, barricades, and information and traffic signs, in accordance with the Occupational Health and Safety Act, R.S.O. 1990, chap. 0.1. as amended, and any applicable provincial traffic regulations, including but not limited to the Ministry of Transportation's Ontario Traffic Manual, Book #7 (Temporary Conditions). As of Mav 31, 2018 By-law No. A TACHIV1EN T __ "_ TO REPORT#_: N(-7 16)-78 Page 7 (b) If the Applicant fails to comply with subsection 6.(3) (a), the City may revoke the Road Occupancy Permit and issue a stop work order. (c) Work may only re -commence upon inspection and compliance with the Traffic Control Plan. (4) Closure to Traffic No Applicant shall temporarily close a right of way to traffic, or one direction of traffic, unless; (5) (a) a Road Occupancy Permit consents to theclosure; and (b) the Applicant has notified all agencies as identified on the Road Occupancy Permit and/or any others which may be affected by the closure. Telephone (a) The Applicant shall respond to telephone inquiries during the period for which the Applicant is responsible for the activity, including the warranty period. (6) Indemnification (7) The Applicant shall indemnify the City; from all causes of action, loss, costs ,or damages arising from the execution, non -execution or imperfect execution of any work authorized by this By-law whether with or without negligence on the part of the Applicant or the officers, agents, servants orworkers of the Applicant. Snow Removal and De -Icing Where the Road Occupancy Permit activity impedes snow removal and de-icing by the City, the Applicant shall be responsible for providing ice and snow removal services within the limits of the work site. Such areas shall be cleared of ice and snow to the satisfaction of the City. (b) Should the Applicant fail to complete the required snow removal services and de-icing within the set deadlines, the City, without any notice to the Applicant, may arrange for the snow and ice to be removed by others. All costs incurred by such removal shall be taken from securities. (8) Equipment Requirements (a) Equipment shall be maintained in a good working condition including, but not limited to safety components, muffler systems, properly secured parts and appropriately lubricated components, such that unnecessary danger, noise, and fluid leaks are avoided. As of May 31, 2018 310 By-law No. V':TACHMENT # `2 _. ' 11CPO `n'# 6U(-7 /W —(8 of Page 8 (b) Idling of service equipment shall be restricted to the minimum necessary for the specified work. (9) Location and Times of Construction (a) Construction may only take place within the location limits and times as specified on the Road Occupancy Permit or as otherwise specified by the City. Additional restrictions may apply and work may be prohibited at specific times and dates in order to coordinate with or avoid other work or Special Events in the area. (b) The Road Occupancy Permit site shall be adequately protected and secured at all times. (10) Site Conditions (a) The Applicant is responsible for maintaining the work site and keeping the surrounding area free o dust and mud. The Applicant shall clean the road and sidewalks as required to the satisfaction of the City. (b) Prior to the start of any construction activity, filter cloth shall be placed between the frames and covers of all catch basins within the immediate area to prevent the entry of construction dirt and debris. (c) The Road Occupancy Permit sitejis to be kept in a tidy condition satisfactory Co the City. Upon completion of the work, the Applicant shall remove all surplus materials as well as any rubbish accumulated, make good any defects or damage and shall leave the site in a condition satisfactory to the City. (11) Watermains i) (b) The Applicant shall not operate watermain valves, service water valves and/or hydrants without the approval of the Regional Municipality of Durham. No person shall operate valves, hydrants or interfere with a potable water system in any manner that will cause the water to become non -potable. (12) Road Occupancy Permit Transferability A Road Occupancy Permit is not transferable. (13) Public Transit Accommodations (a) The Applicant shall coordinate with the City all staging with any transit company, school or tour group known to the Applicant that may have a bus stop or travel, within the work area. Special attention shall be given to As of Mav 31. 2018 By-law No. ATTACHMENT _ __ 6OR OR # ±? /&-/g O Page 9 loading and unloading areas for persons with disabilities and school buses. (b) The Applicant shall maintain access to all existing bus stops within the work area. Where it is not practical to maintain access, the Applicant will be responsible for relocation and reinstatement of the bus stops, under the direction of the transit authority, unless other arrangements have been made. (c) When the proposed works involve the removal orthe replacement of a utility pole that is being used for City of Pickering signage including but not limited to Bus Stop Signs, Parking Signs, and Public Information Signs, the Applicant shall arrange for the removal and replacement of all signage. (14) Responsibility for Claims and Maintenance The cost of all damage repairs pursuant to section 7.(3) shall be at the expense of the Applicant and the costs incurred by the City shall be paid by the Applicant forthwith on demand, failing which the costs shallbe deducted from the security. (15) Driveways If any asphalt, concrete, interlocking, or other surfacing material from a driveway located within the*boulevard is removed'or. damaged in the course of work undertaken with a Road Occupancy Permit, it shall be replaced as nearly to the original condition as it was installed; (16) Ground Cover Material and Vegetation If any ground covering material and vegetation including sod and shrubbery ,located within the boulevard is removed or damaged in the course of the work undertaken with a Road Occupancy Permit, it shall be replaced as nearly to the original condition as it was installed. (17) . Posting of Road Occupancy Permit (a) ' No. Person shall work on a right of way without a Road Occupancy Permit oh -site and available for inspection. (b) If requested by the City, the applicant must erect a sign showing: (b.1) name of the Applicant; (b.2) the Person(s) or Contractor undertaking the work; (b.3) name of the Utilities Company for which the work is being done; (b.4) a general outline of the scope of the work; and (b.5) an anticipated schedule of completion. As of Mav 31. 2018 By-law No. AT"TAC iM1NT# aOREPORT#C r7 j /? Page 10 of moo 7. Construction Conditions (1) General Road Occupancy Permit Requirements (a) The Applicant shall open a road cut in such a manner as to do the least possible damage to the right of way and to any utility or municipal service. (b) The work shall proceed expeditiously and no Applicant shall allow a road cut to remain open for more than twenty-four (24) hours unless the work is actively in progress. (c) The site shall be kept clean and safe, and sources of dust and mud controlled at all times until the final reinstatement has been completed. All dust and mud nuisance that is tracked from the site shall be promptly cleaned. (d) The Applicant and contractor shall comply with and be bound by the provisions of the Ministry of Transportation's Ontario Traffic Manual, Book 7 (Temporary Conditions). (2) Excavated Materials and Road Cut Methods (a) No Applicant shall place, cause or permit the placement of material or equipment in a location where,'' it will; cause damage to the infrastructure it is placed on and/or create a traffic or safety hazard. (b) Except as permitted by the City,rt where multiple road cuts are, required with a separation distance of equal to or less than thirty (30) metres it shall be required that the Applicant reinstate the road cuts and resurface the right of way for the entire distance between the outer edges of each road cut. (c) Where a road cut is made in anyconcrete surface, the Applicant shall break out and remove all concrete to the nearest expansion or contraction joint, using a concrete saw if necessary, to provide a clean vertical surface on all sides of the road cut; or as specified by the City. Where a road cut is made in asphalt pavement, the asphalt shall be cut with a mechanical cut device to produce a rectangular opening with edges which are vertically straight which is large enough to accommodate the proposed,wiorks without undermining the adjacent asphalt pavement. F (e) Where boring, directional drilling, jacking or tunneling is used for any subsurface road cut and if a cave-in, settlement or heaving results there from, the surface in the affected area shall be removed and reinstated by the Applicant in accordance with this By-law to the satisfaction of the City. Where applicable, all works shall be completed to City of Pickering Standards and Ontario Provincial Standards. City of Pickering Standards shall take precedence over Ontario Provincial Standards unless otherwise directed by the City. (f) 312 As of Mav 31. 2018 By-law No. `TAC=iME '# 9OREPoRe ILC:-? /0 -7.5 /La D Page 11 (3) Reinstatement and Backfill Requirements (a) The Applicant shall be responsible for: (a.1) the permanent restoration of a road cut subject to the provisions of this By-law; and (a.2) the temporary restoration of every road cut that is not in a condition to be permanently restored by November 15th and is responsible for the permanent restoration prior to May 1st of the following year. (b) All reinstatements shall be done to current City of Pickering Standards and O.P.S.S. standards. City of Pickering Standards shall take precedence over Ontario Provincial Standards unless otherwise directed by the City. (c) Temporary surfacing of a roadway with asphalt, concrete, or other surface material, the treated surface shall meet the following requirements: (c.1) the road cut shall be temporarily reinstated immediately after backfilling is completed; (c.2) the reinstatement shall be to the same level as the adjacent surface; and (c.3) prior to the right of way being opened to traffic, the top seventy-five (75 mm) millimetres of the road cut shall be surfaced with hot mix asphalt, concrete, or, if hot mix asphalt is unavailable, with emulsified cold mix asphaltic material, all hand -tamped or rolled to a smooth, flat condition using industry standard practices and standard tamping or rolling equipment. (4) Contaminated Materials If contaminated material is found when excavating, the Applicant shall immediately notify the City and the Ontario Ministry of the Environment and comply with all applicable environmental, health and safety requirements. Contaminated material must not be used as backfill and must be disposed of in accordance with all legislative requirements. (5) Testing (a) The City may at any time require an Applicant to provide, at their expense, such information, testing, and or certification as The City deems necessary to satisfy itself that the work as authorized is in accordance with this By-law. (b) All testing. required shall be completed in accordance with O.P.S.S. As ofMav31.2018 By-law No. fr.,._TAC - a# 4_, TO PO Rig_ Nle /& --of' Page 12 (6) Reporting Damage / Impact to Existing Utilities (7) (a) Any impact on existing utilities including, but not limited to, the protective coating, support, cathodic protection or the housing of the utilities, shall be reported to the Engineering Department and applicable Utility Company immediately. (b) The utilities shall remain exposed, with the excavation properly supported, until the utilities owner has assessed the damage and made a repair or authorized the Applicant to proceed. Completion of Work (a) Upon completion of the temporary surfacing or permanent reinstatement of the road cut, all excess material shall be removed from the area of the road cut and the area shall be left in a safe, neat and clean condition to the satisfaction of the City. (b) To close the Road Occupancy Permit the applicant must contact the City for inspection. (8) Trenchless Installations (a) Where the work being undertaken uses tre.nchless installation methods, preservation and protection of existing utilities shall be according to O.P.S.S.,91. (b) Minimum horizontal and vertical clearances to existing utilities as specified in O.P.S.S. shall be maintained. Clearances shall be measured from the nearest edge of the largest backreamer required to the nearest edge of the utility being paralleled or crossed. (c) Existing underground utilities shall be exposed to verify its horizontal and vertical locations when the bore path comes within 1.0 metre horizontally of the existing utility. Existing utilities shall be exposed by non-destructive methods. The number of pilot holes required to monitor work progress and the proposed location of such pilot holes must be clearly depicted on the application drawing. All pilot holes and any other damage to the street infrastructure shall be restored as per the requirements of this By-law. Protection of Trees All construction activity in the vicinity of trees shall ensure no damage to the existing trees. All roots being removed are to be saw cut cleanly for the protection of the tree. (9) 314 As of Mav 31. 2018 By-law No. .A all ENT; ,. 02-__ TO uPOR T 12 /co - / of Page 13 (10) Utility Depth of Bury All underground utilities to be placed in conformity to City of Pickering standards with specific regard for and compliance with the following minimum depth of cover requirements: (a) Gas, 0.9m (b) Telephone, television, Internet and communication;, 0.6m (c) Hydro, 0.6m (d) Storm sewer, 1.8m (e) Sanitary Sewer, 2.5m (f) Watermain, 1.8m (11) Above Ground Aerial Wiring Height Requirements (a) All above ground aerial wiring including, but not limited to Hydro lines, telecommunication lines, and temporary service drops are to be placed in conformity to City of Pickering Standards with specific regard for and compliance with the following minimum height requirements: (a.1) 5.5m above highways, streets, lanes and alleys (a:2) 5m across driveways to commercial and industrial premises (a.3) 4m across driveways to residential garages (a.4) 3m across ground normally accessible to pedestrians only (b) Additionally, all aboveground aerial wiring must conform to any applicable Ontario Electrical Safety Code (OESC) regulations. (12) Temporary Service Drops ) Temporary Service Drops shall be permitted as an immediate short term means to supply servicing to the service provider's customers with the permanent service being installed at a future date. Installation of cables for Temporary Service Drops: (a.1) shall be performed in a manner that ensures the safety of residents, pedestrians, and vehicles and placed with due regard for aesthetics and the impact to adjacent property owners. (a.2) shall be buried such that it does not constitute a tripping hazard or cause damage to property. (a.3) shall not cross sidewalks, driveways or walking paths along the surface. (a.4) may utilize aerial crossings in conformance with section 7(11). (a.5) shall not lie unprotected on the ground at any location. Ac of May :11 7n1R 316 By-law No. T-57,ACHME 4i „fi t o" ,`+i'# /b -/ `a Page 14 (a.6) may be strung using existing municipal street lights and or municipal street trees. However, the contractor / installer may be directed to use alternate methods where it is deemed by the City to be harmful to the tree o other City operations. (a.7) shall enter and leave a utility pedestal at a 90 degree angle. (a.8) shall not cross over a property not being serviced by this cable without the prior written consent of the affected property owner. (b) Notification must be given to residents of all properties affected by the temporary service connection including an estimated date of permanent service installation and removal of the temporary cable. (c) All infrastructure including, but not limited to, utility pedestals, cables, supports and access points shall remain'` in a closed and safe condition at all times. (d) The Applicant shall remove the Temporary Service Drop and install the permanent service as soon as possible but not more than .90 days from installation of the Temporary Service Drop, weather permitting. All Temporary Service Drops installed between November and March are to be removed by the following June 1st (e) Immediately upon installation of the permanent service, regardless of whether or not restoration has been completed, all materials and equipment associated with the temporary service drop shall be removed from the site. (f) Weather permitting, the permit work site is to be fully restored within 30 days of the permanent service work installation. The restoration shall be as nearly to the original condition as it was installed prior to the start of the permitted work and shall include driveway, boulevard ground cover and all existing features such as, but not limited to, fencing. (13) Infrastructure Identification (a) For maintenance and right of way infrastructure managment purposes, all utility aboveground service infrastructure shall bear markings or a permanent/label in a visible location which identifies the company ownership of the asset. (b) The City shall determine and establish exemptions to section 12(a) on a where non -practical and non -feasible basis. 8. Cut Failure and Warranties (1) Completion of Work (a) For temporary reinstatement of the right of way, the Applicant is responsible for the repairs necessary to correct any road cut under the AS of Mate :11 701R By-law No. _ TO REt ORT# 6/_C —/ v Page 15 Ontario Minimum Maintenance Standards for Municipal Right of way, O.P.S.S. and City of Pickering Standards as applicable. (b) Following the permanent reinstatement of the right of way, the Applicant is responsible for: (b.1) the repairs necessary to correct any settlement or surface deterioration for a warranty period of two years following the date of acceptance by the City of final reinstatement of the right of way, or being the last time the applicant repaired the road cut; and (b.2) any costs incurred by the City for any temporary and permanent surface repairs resulting from improper backfilling or compaction of the right of way or deficient materials. (c) If the Applicant has not done the work referred to in section 8. (1) (b) hereof within twenty four (24) hours notification, the City may order the work to be done at the Applicant's expense. All costs incurred by the City shall be taken from securities. (2) Emergency Repairs (a) If the City is of the opinion that a road cut reinstatement or lack of reinstatement, has created an emergency situation which can cause damage to vehicles or endanger the public, the City may protect the area and make immediate repairs;. (b) All work`done by the, City pursuant to subsection 8. (2) (a) shall be at the expense of the Applicant and the costs of the City hall be paid by the Applicant failing which the costs shall be deducted from the securities. (c). Where emergency repairs must be completed in relation to activities completed without a permit, the contractor and/or person who caused the road cut or damage shall be responsible for the costs incurred by the City as referred to in section 2(a). 9. Roadway Obstructions (1) No person shall place or cause to be placed any obstructions including, but not limited to, construction material, landscaping material, disposal or storage bins, construction vehicles or equipment on a right of way without obtaining a Road Occupancy Permit. (2) Where.a roadway obstruction has been authorized by the City, the Applicant shall place traffic cones in accordance with Ontario Traffic Manual Book 7 at each of the two roadside corners of the obstruction to delineate a potential traffic hazard. 317 Ac of nnaw qi 9n1st 318 By-law No. TC: f.EPOR`i~ 171G, -/b Page 16 (3) No property owners shall obstruct, cause or permit the obstruction of any right of way in relation to work being done on their property without obtaining a Road Occupancy Permit. (4) Permits issued in relation to obstructions on a right of way are exempt from section 6(1), 6(2) and 6(17). 10. Sump Pump And Private Drains (1) No person shall install a sump pump or private drain outlet on City property. without direct written consent by the City or unless it has previously been approved by the City. 11. Enforcement (1) The administration and enforcement of this By-law shall be performed by the Director or an Inspector. (a) No person shall hinder, or obstruct or attempt to hinder or obstruct, an Inspector from conducting an inspection or a person performing corrective work under this By-law. (b) Where an Inspector has reasonable grounds to believe that an offence has been committed the Inspector may request the name, address, company conducting work, and proof of identity, from the person on site, and the person shall supply the required information. (a) Any obstructions found on a roadway or right of way without a permit may be removed. Where obstructions are removed which are deemed for disposal, the City may dispose of it as deemed appropriate. Any person who has the authority to enforce this bylaw, upon discovery of an obstruction on a roadway or a right of way in contravention to this bylaw, may cause it to be removed and placed or stored in a.suitable place and all costs and charges for removing, care and storage will be at the contractor or owners expense and must be paid by the contractor or owner prior,to the return of the obstruction. (2) (3) (b) ( (4) Inspection (a) An Inspector may: (a.1) require the production of documents or things relevant to the inspection; (a.2) inspect and remove documents or things relevant to the inspection for the purpose of making copies or extracts; (a3) require information from any person concerning a matter related to the inspection; and As of May 31. 2018 By-law No. . ACi= HENT# a .TO REPOT#__ •7 /6-49 Page 17 (a.4) alone or in conjunction with a person possessing special or expert knowledge, make examinations or take tests, samples or photographs necessary for the purpose of the inspection. (b) Where a sample is taken, the sample shall be divided into two parts, and one part shall be delivered to the person from whom the sample is taken, if the person so requests at the time the sample is taken and provides the necessary facilities. If a sample has been taken and the sample has not been divided into two parts, a copy of any report on the sample shall be given to the person from whom the sample was taken. (c) A receipt shall be provided for any document or thing removed and the document or thing shall be returned. (5) Stop Work Order (a) The City may issue a stop work=order for construction that is not in accordance with the conditions of a Road Occupancy Permit, orwhere construction is taking place without a required Road Occupancy Permit: (b) a stop work order may require temporaryrestoration and removal of all equipment and materials off site until compliance with the bylaw is met. (c) A stop work order shall be lifted once the City determines that all contraventions of this By-law have been rectified. (6) Permit Revocation (a) The,Director may revoke a permit for any of the following reasons: (a.1) a violation of any condition of the Road Occupancy Permit or of any provision of this By-law; a.2) a violation of any provision of any other law relating to the work; 3) the existence of any condition or the doing of any act constituting or creating a nuisance or endangering the lives or properties of others; (a.4) where the Road Occupancy Permit has been issued on mistaken, false or misleading information; or (a.5) where the work is not carried out in a diligent and workmanlike manner. (a.6) it was issued in error. (b) Upon notice of Road Occupancy Permit revocation, the Applicant must immediately cease all construction activities and immediately restore the right of way. Such restoration shall be carried out at the Applicant's sole expense, and if the Applicant should fail to carry out such restoration, the right of way shall be restored by the City as necessary, and the entire cost of so doing shall be taken from Securities held, or paid by the Applicant. 319 Ac of May "1 9n1R 320 By-law No. `: cHmEN T#r_` TO r A ' 7 8 Page 18 When restoration is completed, the Applicant may reapply for a new Road Occupancy Permit. (7) Non -Compliant Installations (a) Where utilities are found to be constructed without a valid Road Occupancy Permit and/or in a location other than that approved by the City, the Utilities Company may be required to, at its own expense, immediately remove the utilities and/or relocate work in compliance with the approved design and restore the site to the satisfaction of the City. (8) Service of Order or Notice (1) The service of all Orders or Notices from the City may be: (a) Served personally upon the contractor,_ or permit holder; (b) Posted on site; or, (c) Mailed by registered mail to the last'known address of the contractor, or permit holder. • (2) If served by registered mail, an Order shall be deemed to have been served on the fifth day after mailing 12. Fees and Securities (1) The fees for the Road Occupancy Permit, and for any inspections and examinations required under it, shall be such amount as determined in the City of Pickering Fees By-law`and shall be due and payable to the City of Pickering at the time of application. No Road Occupancy Permit shall be issued, or inspection carried out until such fees have been paid and there shall be no refund of any fees for any cause. (2) Applicant shall deposit with the City of Pickering, Security in a form acceptable to the City of Pickering. Ac of Maw R1 7f11R By-law No. ATTACH MENU TOREPORT# 7 f(').-15) 0 Page 19 13. Penalties and Offences (1) Any person, other than a corporation, who contravenes the provisions of this By- law, the conditions of a Permit, or an Order issued pursuant of this By-law, is guilty of an offence, and upon conviction, is liable: (a) on a first conviction, to a fine of not more than $25,000.00 and (b) on any subsequent conviction, to a fine of not more than $50,000.00. (2) A corporation that contravenes any prevision of this By-law, the conditions of a Permit, or an Order issued pursuant of this By-law, is'guilty of an offence, and upon conviction, is liable: (a) on a first conviction, to a fine of not more than $50,000.00 and (b) on any subsequent conviction, to a fine of not more than $100,000.00. The amounts in Section 13.(1) and 13.(2) are exclusive of costs and are recoverable under the Provincial Offences Act. (3) 14. Severability If any provisions of this By-law, or the application thereof to any person or circumstance, is invalid, the invalidity shall not affect other provisions or application of this By-law which can be given effect without the invalid provision application, and to this end the provisions of this By-law are severable. 15. Transition Every Road Occupancy Permit issued prior to the passage of this By-law shall be deemed to be issued under this By-law for regulatory and enforcement purposes. 16. Short Title This By-law may be cited as the "Road Occupancy By-law". 17. Word Usage (1) This By-law shall be read with all changes in gender or number as the context { requires. (2) A grammatical variation of a word or expression defined has corresponding meaning. 18. Conflicts If a provision of this By-law conflicts with any applicable Act, regulation or By-law, the provision that establishes the higher or more restrictive standard to protect the health, safety and welfare of the general public shall prevail. 321 1�.,fnnoi'1 "n1f1 By-law No. — TO REPORT# /0 /6i oa' c?o Page 20 • 19. Force And Effect This By-law shall come into force and have effect immediately upon the final passing thereof. By-law passed this XX day of XXX, 2018. David Ryan, Mayor Debbie Shields, City Clerk 322 ARofM vR1 7018 cd, �6 DICKERING Report to Executive Committee Report Number: ENG 18-18 Date: June 18, 2018 From: Richard Holborn Director, Engineering Services Subject: Proposed Stopping Restrictions - • Oklahoma Drive File: A-1440 Recommendation: 1. That the attached draft by-law be enacted to amend Schedule "1", No Stopping, to By-law 6604/05 to provide for the regulation of stopping and parking on highways or parts of highways under the jurisdiction of The Corporation of the City of Pickering, specifically to address stopping restrictions on Oklahoma Drive adjacent to Fairport Beach Public School, from 30 metres east of Eyer Drive to Hillcrest Road; and 2. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: Engineering Services staff received concerns from the community, specifically related to restricted traffic flow on Oklahoma Drive during the peak arrival and dismissal times for Fairport Beach Public School. After review, Engineering Services staff recommends that By-law 6604/05 be amended to include stopping restrictions on the north side of Oklahoma Drive between Eyer Drive and Hillcrest Road from 7:30 am to 4:30 pm Monday to Friday. Also, it is recommended that signs indicating stopping restrictions be installed on the north side of Oklahoma Drive 30 metres east and west of the existing pedestrian signal and crosswalk on Eyer Drive. These restrictions do not require a by-law change as By-law 6604/05 has existing provisions to restrict vehicle stopping within 30 metres of a school crosswalk, where signs to that affect are erected. Financial Implications: The installation of No Stopping signs and posts on Oklahoma Drive can be accommodated within the 2018 Roads Current Budget. Discussion: Concerns from the Fairport Beach Neighbourhood Association and area residents were brought to the attention of Engineering Services staff, over the past few months, with respect to restricted vehicular flow on Oklahoma Drive adjacent to Fairport Beach Public School. The concerns specifically state that the flow of vehicles on Oklahoma Drive is restricted and difficult when there are multiple vehicles stopping and parking during the peak arrival and 323 ENG 18-18 June 18, 2018 Subject: Proposed Stopping Restrictions Oklahoma Drive Page dismissal times at the school, and that children should not be getting dropped off and picked up on a busy street. Oklahoma Drive is an east -west collector road with approximately 5,000 vehicles a day, and stretches from West Shore Boulevard to Whites Road, further extending to Rosebank Road via Granite Court. Oklahoma Drive has a posted speed. limit of 40 km/h. Currently, stopping restrictions exist on the south side of Oklahoma Drive from Eyer Drive to Hillcrest Road. These restrictions were installed in 2013 after the City received complaints of the road being reduced to 1 lane when vehicles stop on both sides of the road during the pick-up and drop-off times for Fairport Beach Public School. In response to the recent concerns received, Engineering Services staff investigated and confirmed that vehicular traffic slows considerably when vehicles are parked on the north side of the road during pick-up and drop-off times for the school as traffic flow is restricted. In addition, many children are dropped off and picked -up on Oklahoma Drive, which is not ideal from a safety perspective. To, resolve the restricted traffic flow issues on Oklahoma Drive, Engineering Services staff recommend the following restrictions: • Stopping restriction signs be installed on the north side of Oklahoma Drive 30 metres east and west of the existing pedestrian signal and crosswalk on Eyer Drive. These restrictions do not require a by-law change as By-law 6604/05 has existing provisions to restrict vehicle stopping within 30 metres of a school crosswalk, where signs to that affect are erected. • That By-law 6604/05 be amended to reflect the addition of stopping restrictions on the north side of Oklahoma Drive from 30 metres east of Eyer Drive to Hillcrest Road from 7:30 am to 4:30 pm, Monday to Friday. These restrictions are identical to the stopping restrictions on the south side of Oklahoma Drive from Eyer Drive to Hillcrest Road. Staff discussed the proposed stopping restrictions with the principal of Fairport Beach Public School. The restrictions were supported and the principal will communicate the changes to parents through the school's newsletter. As the changes will occur over the summer, the restrictions will be in place for the start of the 2018-2019 school year. The principal has advised that in the last year other measures to improve traffic flow at the school have been undertaken, which include: • the start of a one-way kiss and ride drop off program, and staffing of the kiss and ride to ensure the safe exit of vehicles • relocated staff parking spaces to the far side of the parking lot, leaving the parking spaces closest to the school for parents who are walking their children in (usually younger kindergarten and primary students) 324 ENG 18-18 June 18, 2018 Subject: Proposed Stopping Restrictions Oklahoma Drive Page 3 • parking lot safety is reviewed with the school Community Liaison Officer (who also supports parking restrictions on the north side of Oklahoma Drive) • parking lot safety and kiss and ride procedures are shared with the community through the school newsletter which is posted on its website The proposed stopping restrictions on Oklahoma Drive are illustrated on the attached sketch (Attachment 1). The draft by-law amendment to Schedule 1 of By-law 6604/05, for the proposed stopping restrictions on Oklahoma Drive can be found in Attachment 2. Attachments: 1. Proposed Stopping Restrictions, Oklahoma Drive 2. Draft By-law, Amendments to Schedule 1, No Stopping to By-law 6604/05 Prepared By: Nathan Emery Coord. ator, Traffic Operations C Scott Booke Manager, Capital Projects & Infrastructure NE:mjh Approved/Endorsed By: Richard Hdborn, P.Eng. erector, Engineering Services Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer 4 wfe 325 Proposed Stopping Restrictions (Any time) Fairport Beach Pu lc School 4 Proposed Stopping Restrictions 7:30 am to 4:30 pm, Monday to Friday Existing Stopping Restrictions (Any time) Oklahoma Drive Existing Stopping Restrictions 7:30 am to 4:30 pm, Monday to Friday IP Engineering Services Department SCALE NTS PLOT pare May, 2018 Proposed Stopping Restrictions Oklahoma Drive PICKERING 0 1— ATTACHMENT# 2' TO REPORT# �<7 / 8 S The Corporation of the City of Pickering By-law No. Being a by-law to amend By-law 6604/05 providing for the regulating of traffic and parking, standing and stopping on highways or parts of highways under the jurisdiction of the City of Pickering and on private and municipal property. Whereas By-law 6604/05, as amended, provides for the regulating of traffic and parking on highways, private property and municipal property within the City of Pickering; and Whereas, it is deemed expedient to amend Schedule 1 to By-law 6604/05 to provide for the regulation of stopping restrictions on highways or parts of highways under the jurisdiction of the Corporation of the. City of Pickering, specifically to restrict parking on a portion of the north side of Oklahoma Drive. Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. Schedule 1 to By-law 6604/05, as amended, is hereby further amended thereto by the following: Schedule 1 No Stopping Column 1 Column 2 Column 3 Column 4 Highway Side Limits (From/To) Prohibited Times or Days Add Oklahoma Drive North 30 metres east of 7:30 am to 4:30 pm Eyer Drive to Hillcrest Monday to Friday Road 327 By-law No. ATTACHMENT# TO REPORT#._ /6' i 0- of y Page 2 By-law passed this 25th day of June, 2018. 328 David Ryan, Mayor Debbie Shields, City Clerk Cts DICKERING Report to Executive Committee Report Number: FIN 12-18 Date: June 18, 2018 From: Stan Karwowski Director, Finance & Treasurer Subject: Investment Portfolio Activity for the Year Ended December 31, 2017 Ontario Regulation 438/97 under the Municipal Act, 2001 Recommendation: It is recommended that report FIN 12-18 of the Director, Finance & Treasurer regarding Investment Portfolio Activity for the Year Ended December 31,2017 be received for information. Executive Summary: The following report and attachments represent a summary of the investment activity and year end balance in the portfolio. Investment activity for the year 2017 totaled approximately $415.1 million with a year end balance in the portfolio of approximately $164.1 million. Current Fund investments are limited to one year or less and Reserve Funds to 10 years or less under the Council approved policy. The last two years have seen the value of the portfolio rise significantly which is primarily a result of recent sale of lands in Duffin Heights and an increase in building activity. Overall returns on the City's portfolio compare favourably to market benchmarks. Financial Implications: Total investment income, including bank account interest for 2017 was $1.77 million (2016 - $1.42M) of which $751,000 (2016 - $421,000) was for Current (Operating) Funds. The balance of the income was allocated to the various reserve funds. Discussion: The City's investment portfolio is comprised of two main components: (1) Reserve Funds; and (ii) Balances available in the Current Fund, when not required to meet current operating expenditures. This latter balance can vary greatly depending upon many factors including the timing of the receipt of property taxes and levy payments to the School Boards and the Region. 329 FIN 12-18 June 18, 2018. Subject: Investment Portfolio Activity for the Year Ended December 31, 2017 Page 2 Ontario Regulation 438/97 under the Municipal Act, 2001 Investments are undertaken as one consolidated pool of funds and interest earned is credited back to the appropriate funds. The Treasurer of the City of Pickering is required under Provincial Regulation 438/97 to report certain information and opinions to Council. The schedules to this report are included as part of that Regulation's information requirements. The portfolio balance at December 31, 2017 of $164.1 million (2016 - $112.4M) has increased over the prior year. This is primarily a result of recent land sales in Duffin Heights, an increase in building activity and the large debenture issue in 2017 required for funding of the new Operations Centre. The return on the portfolio maintained with Nesbitt Burns increased slightly in 2017 with a weighted yearly rate of return of 0.89% (2016 — 0.84%) on the combined short-term and long-term investments. This was a result of the interest rates beginning to rise in the latter half of 2017. The net performance on TD Wealth's portion of the portfolio for 2017 was 1.83% (2016 — 1.27%). This slight increase is attributed to the types of investments being held. The portion of the portfolio invested with TD Wealth primarily consists of one year Guaranteed Investment Certificates (GIC). Interest rates are higher than the interest rates for Banker's Acceptances and the one year term protects the City from fluctuations in interest rates, but GIC's are less liquid than these other investment instruments. Investment parameters are narrow due to the Municipal Act and Regulations limiting the selection of qualified investments for municipal entities. Furthermore, staffs approach tends to be conservative, given that they are investing public money. Notwithstanding these restrictions, the annual returns from both Nesbitt Burns and TD Wealth outperformed the annual returns for the CIBC World Markets 91 -Day T -Bill Index (0.52%) and the Morningstar Canadian Money .Market Mutual Fund Index (0.47%). These indices are deemed to be comparative benchmarks for reviewing the portfolio's performance and are considered the standard for analysis of investment funds in the industry. The average return on interfund investments (internal loans) was 2.32% (2016 — 2.38%). At year end 2017, the total portfolio of approximately $164.1 million, consisted of approximately $47.9 million or 29.2% in external long-term investments and approximately $3.6 million or 2.0% in Interfund Investments (Internal Loans). The balance of approximately $112.6 million is short-term investments due within the year. All investments were made in accordance with the Investment Policy approved by Council. 330 FIN 12-18 June 18, 2018 Subject: Investment Portfolio Activity for the Year Ended December 31, 2017 Page 3 Ontario Regulation 438/97 under the Municipal Act, 2001 Attachments: 1. Investment Activities for 2017 2. Outstanding Investments as at December 31, 2017 3. Portfolio Performance Review - Correspondence from BMO Nesbitt Burns 4. Portfolio Performance - Correspondence from TD Wealth Prepared By: Kristine Senior Manager, Accounting Services Approved/Endorsed By: Stan Karwowski Director, Finance & Treasurer Recommended for the consideration of Pickering City ouncil Tony Prevedel, P.Eng. Chief Administrative Officer 1008 331 CITY OF PICKERING INVESTMENT ACTIVITIES FOR 2017 Financial Institution Instrument Cost Principal Purchase Yield Term Date Maturity Date Short Term Nesbitt Burns Firstbank Bankers Acceptance Toronto Dominion Bank Bankers Accept. Firstbank Bankers Acceptance Firstbank Bankers Acceptance Toronto Dominion Bank Bankers Accept. Firstbank Bankers Acceptance Toronto Dominion Bank Bankers Accept. Bank of Nova Scotia Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance Bank of Nova Scotia Bankers Acceptance Firstbank Bankers Acceptance Toronto Dominion Bank Bankers Accept. Firstbank Bankers Acceptance Bank of Nova Scotia Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance Bank of Nova Scotia Bankers Acceptance Firstbank Bankers Acceptance Bank of Nova Scotia Bankers Acceptance Bank of Nova Scotia Bankers Acceptance Bank of Nova Scotia Bankers Acceptance CIBC Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance Bank of Nova Scotia Bankers Acceptance Firstbank Bankers Acceptance Toronto Dominion Bank Bankers Accept. Toronto Dominion Bank Bankers Accept. CIBC Bankers Acceptance Bank of Nova Scotia Bankers Acceptance Firstbank Bankers Acceptance Toronto Dominion Bank Bdn Discount No. Toronto Dominion Fixed Rate Deposit Nol Bank of Nova Scotia Firstbank Bankers Acceptance Firstbank Bankers Acceptance 7,117,594 4,999,937 3,564,359 5,927,857 6,355,516 5,976,123 6,191,202 5,784, 859 8,341,302 5,049,351 7,128,289 3,572,808 6,398,462 5,936,771 5,986,745 6,269,450 5,794,656 8,353,696 24,999,495 5,272,128 7,141,123 3,626,570 6,023,890 6,409,307 5,997,809 6,279,504 8,366,683 5,896,438 30,025,760 14,974,800 5,339,014 7,154,220 3,632,895 6,246,215 6,239,175 6,007,106 6,288,016 8,378,569 6,020,881 7,568,920 7,474,050 10,065,202 10,008,891 5,373,318 7,170,784 7,129,000 5,008,000 3,570, 000 5,937,000 6,365,000 5,986,000 6,201,000 5,795,000 8,354,000 5,058,000 7,141,000 3,579,000 6,410,000 5,947,000 5,997,000 6,280,000 5,804,000 8,367,000 25,011,000 5,281,000 7,154, 000 3,633,000 6,033,000 6,419,000 6,007,000 6,289,000 8,379,000 5,905,000 30,079,000 15,000,000 5,351,000 7,171,000 3,642,000 6,263,000 6,255,000 6,025,000 6,307,000 8,401,000 6,037,000 7,592,000 7,500,000 10,026,000 10,015,000 5,389,000 7,192,000 0.629% 0.647% 0.635% 0.626% 0.635% 0.670% 0.642% 0.703% 0.678% 0.736% 0.723% 0.711% 0.731% 0.699% 0.687% 0.675% 0.677% 0.668% 0.560% 0.675% 0.723% 0J19% 0.607% 0.607% 0.621% 0.620% 0.611 % 0.602% 1.044% 1.041% 0.900% 0.951% 1.005% 1.090% 1.077% 1.222% 1.224% 1.206% 1.206% 1.197% 1.196% 2.171% 1.330% 1.158% 1.200% 93 91 91 90 90 90 90 91 82 85 90 89 90 90 91 91 87 87 30 91 91 90 91 91 90 89 88 88 62 59 91 90 91 90 86 89 90 81 81 93 106 181 210 92 90 4 -Oct -16 5 -Oct -16 28 -Oct -16 30 -Nov -16 30 -Nov -16 6 -Dec -16 9 -Dec -16 19 -Dec -16 28 -Dec -16 10 -Jan -17 10 -Jan -17 27 -Jan -17 28 -Feb -17 28 -Feb -17 6 -Mar -17 9 -Mar -17 20 -Mar -17 20 -Mar -17- 31 -May -17 5 -Apr -17 10 -Apr -17 26 -Apr -17 29 -May -17 29 -May -17 7 -Jun -17 8 -Jun -17 15 -Jun -17 15 -Jun -17 28 -Jul -17 28 -Jul -17 5 -Jul -17 12 -Jul -17 26 -Jul -17 29 -Aug -17 29 -Aug -17 6 -Sep -17 6 -Sep -17 11 -Sep -17 11 -Sep -17 25 -Sep -17 25 -Sep -17 3 -Oct -17 3 -Oct -17 4 -Oct -17 10 -Oct -17 5 -Jan -17 4 -Jan -17 27 -Jan -17 28 -Feb -17 28 -Feb -17 6 -Mar -17 9 -Mar -17 20 -Mar -17 20 -Mar -17 5 -Apr -17 10 -Apr -17 26 -Apr -17 29 -May -17 29 -May -17 5 -Jun -17 8 -Jun -17 15 -Jun -17 15 -Jun -17 30 -Jun -17 5 -Jul -17 10 -Jul -17 25 -Jul -17 28 -Aug -17 28 -Aug -17 5 -Sep -17 5 -Sep -17 11 -Sep -17 11 -Sep -17 28 -Sep -17 25 -Sep -17 4 -Oct -17 10 -Oct -17 25 -Oct -17 27 -Nov -17 23 -Nov -17 4 -Dec -17 5 -Dec -17 1 -Dec -17 1 -Dec -17 27 -Dec -17 9 -Jan -18 2 -Apr -18 1 -May -18 4 -Jan -18 8 -Jan -18 CITY OF PICKERING INVESTMENT ACTIVITIES FOR 2017 Financial Purchase Maturity Institution Instrument Cost Principal Yield Term Date Date Firstbank Bankers Acceptance 3,689,714 3,700,000 1.183% 86 25 -Oct -17 19 -Jan -18 Firstbank Bankers Acceptance 6,397,971 6,416,000 1.143% 90 24 -Nov -17 22 -Feb -18 Bank of Nova Scotia Bankers Acceptance 6,263,476 6,281,000 1.122% 91 27 -Nov -17 26 -Feb -18 Bank of Nova Scotia Bankers Acceptance 6,036,475 6,053,000 1.148% 87 1 -Dec -17 26 -Feb -18 Bank of Nova Scotia Bankers Acceptance 8,401,002 8,424,000 1.148% 87 1 -Dec -17 26 -Feb -18 Toronto Dominion Bank Bankers Accept. 6,049,978 6,068,000 1.236% 88 4 -Dec -17 2 -Mar -18 Toronto Dominion Bank Bankers Accept. 6,306,706 6,326,000 1.241% 90 5 -Dec -17 . 5 -Mar -18 Firstbank Bankers Acceptance 7,701,593 7,725,000 1.233% 90 27 -Dec -17 27 -Mar -18 Firstbank Bankers Acceptance 14,999,052 15,038,000 1.231% 77 28 -Dec -17 15 -Mar -18 T -D Wealth Bk of Nova Scotia GIC 1.40% 2,068,521 2,068,521 1.400% 366 26 -Jan -16 26 -Jan -17 Royal Bank Of Canada GIC 1.40% 2,043,016 2,043,016 1.400% 366 23 -Feb -16 23 -Feb -17 Royal Bank Of Canada GIC 1.35% 2,120,059 2,120,059 1.350% 365 25 -Aug -16 25 -Aug -17 Royal Bank Of Canada GIC 1.30% 2,097,480 2,097,480 1.300% 365 26 -Jan -17 26JJan-18 Royal Bank Of Canada GIC 1.25% 2,071,618 2,071,618. 1.250% 365 23 -Feb -17 23 -Feb -18 TD MTG GIC 1.41% 2,148,679 2;148,679 1.410% 365 25 -Aug -17 25 -Aug -18 Total Short term 415,125,080 415,864,373 Long Term - Nesbitt Burns Royal Bank Of Canada 2,375,643 2,294,000 2.980% 847 10 -Mar -17 5 -Jul -19 Bank Of Nova Scotia Senior Deposit Note 1,899,454 1,892,000 2.370% 415 12 -Sep -17 1 -Nov -18 Province Of Alberta 2,454,341 2,439,000 2.000% 468 25 -Sep -17 6 -Jan -19 RBC Sr Dep Note 1,126,569 1,116,000 2.820% 265 20 -Oct -17 12 -Jul -18 BNS Sr Dep Note . 3,698,971 • 3,663,000 2.462% 455 14 -Dec -17 14 -Mar -19 Province of Ontario 1,901,431 1,825,000 4.400% 534 15 -Dec -17 2 -Jun -19 Total Long-term 13,456,409 13,229,000 Long Term Dispositions Province of Ontario 2,685,896 2,399,000 4.300% 1,920 5 -Dec -11 8 -Mar -17 Matured Province of Ontario 1,928,759 1,908,000 1.900% 1,086 18 -Sep -14 • 8 -Sep -17 Matured Royal Bank of Canada Sr. Dep. Note 2,493,070 2,470,000 2.360% 1,673 21 -Feb -13 21 -Sep -17 Matured CIBC Deposit Notes 1,151,222 1,136,000 2.350% 1,792 21 -Nov -12 18 -Oct -17 Matured Bank of Montreal Fixed Rate Dep Note 3,788,326 3,722,000 2.240% 538 21 -Jun -16 11 -Dec -17 Matured Canada Housing Trust 1,916,201 1,905,000 1.700% 1,184 18 -Sep -14 15 -Dec -17 Matured Total Dispositions 13,963,475 13,540,000 CITY OF PICKERING OUTSTANDING INVESTMENTS AS AT DECEMBER 31, 2017 Financial Institution Instrument Short-term Current & Reserve Fund Investments Nesbitt Burns TD Bond Discount Note TD Fixed Rate Deposit Note Bank of Nova Scotia Firstbank Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance BNS Bankers Acceptance BNS Bankers Acceptance BNS Bankers Acceptance TD Bankers Acceptance TD Bankers Acceptance Firstbank Bankers Acceptance Firstbank Bankers Acceptance TD Wealth RBC GIC RBC GIC TD MTG GIC Total Short-term Long-term Reserve Fund Investments Nesbitt Burns TD Wealth Cost Purchase Maturity Principal Yield Term Date Date 7,474,050.00 10,065,201.66 10,008,890.85 5,373,318.01 7,170,783.60 3,689,714.00 6,397,971.04 6,263,476.01 6,036,475.31 8,401, 002.48 6,049,978.04 6,306,705.70 7,701,593.25 14,999,051.58 2,097,480.00 2,071,618.00 2,148,679.00 7,500,000.00 1.20% 106 25 -Sep -17 09 -Jan -18 10,026,000.00 2.17% 181 03 -Oct -17 02 -Apr -18 10,015,000.00 1.33% 210 03 -Oct -17 01 -May -18 5,389,000.00 1.16% 92 04 -Oct -17 04 -Jan -18 7,192,000.00 1.20% 90 10 -Oct -17 08 -Jan -18 3,700,000.00 1.18% 86 25 -Oct -17 19 -Jan -18 6,416,000.00 1.14% 90 24 -Nov -17 22 -Feb -18 6,281,000.00 1.12% 91 27 -Nov -17 26 -Feb -18 6,053,000.00 1.15% 87 01 -Dec -17 26 -Feb -18 8,424,000.00 1.15% 87 01 -Dec -17 26 -Feb -18 6,068,000.00 1.24% 88 04 -Dec -17 02 -Mar -18 6,326,000.00 1.24% 90 05 -Dec -17 05 -Mar -18 7,725,000.00 1.23% 90 27 -Dec -17 27 -Mar -18 15,038,000.00 1.23% 77 28 -Dec -17 15 -Mar -18 2,124,747.24 1.30% 365 26 -Jan -17 26 -Jan -18 2,097,513.23 1.25% 365 23 -Feb -17 23 -Feb -18 2,179,141.38 1.41% 367 25 -Aug -17 27 -Aug -18 112, 255, 988.53 112, 554, 401.85 Province of Ontario Debenture CIBC Deposit Notes BNS Sr Deposit Note BNS Sr Deposit Note BNS Sr Deposit Note RBC Province of Ontario Bank of Montreal Fixed Rate Dep Nt TD Deposit Note CIBC Deposit Note CIBC Deposit Note BNS 5 yr Sr Deposit Note RBC BNS Sr Deposit Note Province of Alberta RBC Sr Dep Note BNS Sr Dep Note Province of Ontario National Bank Extendible Step Up CIBC Deposit Note Total Long-term Total External Investments 2,448,956.92 1,482,583.52 1,320,330.86 1,851,235.42 2,455,846.55 3,711,740.70 2,734,119.38 1,880,007.72 1,817,745.16 3,972,962.28 3,573,783.66 3,601,800.47 2,344,975.36 1,892,677.68 2,451,917.68 1,123,697.07 3,697,626.70 1,899,140.93 2,000,000.00 2,099,000.00 2,444,000.00 4.20% 2711 05 -Oct -10 1,482,000.00 2.22% 1807 26 -Mar -13 1,320,000.00 2.24% 1745 11 -Jun -13 1,848,000.00 2.24% 1053 04 -May -15 2,437,000.00 2.75% 970 17 -Dec -15 3,665,000.00 2.77% 1058 18 -Jan -16 2,712,000.00 2.10% 906 16 -Mar -16 1,857,000.00 3.21% 911 16 -Mar -16 1,790,000.00 2.45% 868 15 -Nov -16 3,957,000.00 1.70% 676 02 -Dec -16 3,522,000.00 2.35% 927 09 -Dec -16 3,543,000.00 2.40% 1053 09 -Dec -16 2,294,000.00 2.98% 788 10 -Mar -17 1,892,000.00 2.37% 121 12 -Sep -17 2,439,000.00 2.00% 614 25 -Sep -17 1,116,000.00 2.82% 265 20 -Oct -17 3,663,000.00 2.46% 455 14 -Dec -17 1,825,000.00 4.40% 534 15 -Dec -17 2,000,000.00 2.70% 3653 06 -Nov -15 2,099,000.00 2.50% 3653 18 -Nov -15 48,360,148.06 47,905,000.00 160,616,136.59 160,459,401.85 Interfund Investments (Internal Loans) Development Charge Reserve Fund Interest Payable Dates 08 -Mar -18 Mar 8 & Sept 8 07 -Mar -18 Mar 7 & Sept 7 22 -Mar -18 Mar 22 & Sept 22 22 -Mar -18 Mar 22 & Sept 22 13 -Aug -18 Feb 13 & Aug 13 11 -Dec -18 Jun 11 & Dec 11 08 -Sep -18 Mar 8 & Sept 8 13 -Sep -18 Mar 13 & Sept 13 02 -Apr -19 Apr 2 & Oct 2 09 -Oct -18 Apr 9 & Oct 9 24 -Jun -19 Jun 24 & Dec 24 28 -Oct -19 Apr 28 & Oct 28 07 -May -19 May 7 & Nov 7 11 -Jan -18 Jan 11 & Jul 11 01 -Jun -19 Jun 1 & Dec 1 12 -Jul -18 Jan 12 & Jul 12 14 -Mar -19 Mar 14 & Sept 14 02 -Jun -19 Jun 2 & Dec 2 06 -Nov -25 Nov 6 18 -Nov -25 May 18 & Nov 18 3,595,241.00 1.83% to 3.96% various various various Total as at December 31, 2017 164,054,642.85 ATTACHMENT #v ;:y.___..TO REPORT #.J--1 Portfolio Performance Review For comparison purposes we have included the following benchmarks that provide.the closest representative return data. There are three separate issues that should be taken into.consideration when comparing the representative rates of return. First, the guidelines set out in the Municipal Finance Statutes governing your investment policy prohibit you from owning any fixed income investments that are not either government guaranteed or issued by a major Canadian Chartered Bank. Canadian money market funds used to construct the Morningstar Canadian Money Market Index contain a high percentage of higher yielding money market products including investments such as asset backed securities, some of which your investment policy prohibits you from holding. Secondly, your portfolio has a smaller percentage of qualified fixed income investments that are slightly longer than the 1 year maturity period that typically defines money market investments. Annual Account Return Benchmark Comparisons* 2017 0.89% 0.52% • 0.47% 2016 0.50% 0.32% 2015 1.36% 0.64% 0.37% 2014 1.51% 0.91% 0.59% 2013 1.23% 0.97% 0.56% 2012 L37% 0.93% 0,58% 2011 2.49% 0.96% 0.64% 2010 1.25% 0.37% 0.31% 2009 1.54%. 0.52% 0.53% 2008 3.13% 2.84% 2007 4.27% 4.29% 3.82% 2006 3.81%, 3.84% 3.21% 2005 2.51% 2.48% 1.87% 2004 4.39% 2.27% 1.51% * Return Comparisons are derived from separate third party sources which are believed to be accurate but are not guaranteed by BMO Nesbitt Burns Inc. ** Comparative benchmarks have been selected that are most reasonable to use for comparison purposes but are not 100% specific to the investment guidelines followed by the representative account in question. *** The Morningstar Fund Indices are the best available representation of the performance of aggregate dollars actually invested, currently and historically, in Canadian money market mutual funds and/or segregated funds. The indices measure the dollar weighted return of assets in Canadian funds. The return calculation does not suffer from•survivorship bias, as the impact of returns with funds that are no longer active are retained. Funds that report returns before fees are excluded from Morningstar Fund Indices. Returns are rounded to 2 decimal places. 335 In conclusion, once I would once again like to highlight the following points; a) Our investment parameters are much narrower than money market funds. Government legislation governing Municipal Investments limits the selection of qualified investments. b) Within the portfolio, we have successfully blended a small percentage of investments with a time horizon exceeding 18 months. c) The account maintains an active pattern of cash 'in -flows and out -flows as a result of the nature of the cash-flow requirements of an entity like the City of Pickering. As a result, it can be difficult to execute d specific investment plan that is not highly liquid and flexible. d) While the current and anticipated interest rate environment is extremely important in shaping the composition of the account portfolio, we always endeavour to attempt to avoid making decisions that could be construed as market timing any changes in relation to Bank of Canada rate decisions. Sincerely, ,4iralo kelee Andrew R. Geddes PFP, CIM, Fcsl Vice President, Portfolio Manager BMO Wealth Management, BMO Nesbitt Burns Inc. Chia I INVESTMENT MANAGER (TV. cJ) ELLOW OF CSI • PFPP� FINAN IAL PLANNER BMO Nesbitt Burns Inc. ("BMO NBI") provides this commentary to clients for informational purposes only. The information contained herein is based on sources that we believe to be reliable, but is not guaranteed by us, may be incomplete or may change without notice. The comments included in this document are general in nature, and professional advice regarding an individual's particular position should be obtained. "BMO (M -bar roundel symbol)" is a registered trade -mark of Bank of Montreal, used under licence. "Nesbitt Burns" is a registered trade -mark of BMO Nesbitt Burns Inc. BMO Nesbitt Burns Inc. is a wholly-owned subsidiary of Bank of Montreal. Member -Canadian Investor Protection Fund. General Disclosure "BMO Capital. Markets" is a trade name used by the BMO Financial Group for the wholesale banking businesses of Bank of Montreal and its subsidiaries BMO Nesbitt Burns Inc., BMO Capital Markets Limited in the U.K. and BMO Capital Markets Corp. in the U.S. BMO Nesbitt Burns Inc., BMO Capital Markets Limited and BMO Capital Markets Corp are affiliates. Bank of Montreal or its subsidiaries ("BMO Financial Group") has lending arrangements with, or provide other remunerated services to, many issuers covered by BMO Capital Markets. The opinions, estimates and projections contained in this report are those of BMO Capital Markets as of the date of this report and are subject to change without notice. BMO Capital Markets endeavours to ensure that the contents have been compiled or derived from sources that we believe are reliable and contain information and opinions that are accurate and complete. However, BMO Capital Markets makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions contained herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this report or its contents. Information may be available to BMO Capital Markets or its affiliates that is not reflected in this report. The information in this report is not intended to be used as the primary basis of investment decisions, and because of individual client objectives, should not be construed as advice designed to meet the particular investment needs of any investor. This material is for information purposes only and is not an offer to sell or the solicitation of an offer to buy any security. BMO Capital Markets or its affiliates will buy from or sell to customers the securities of issuers mentioned in this report on a principal basis. BMO Capital Markets or its affiliates, officers, directors or employees have a long or short position in many of the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon. The reader should assume that BMO Capital Markets or its affiliatesmay have a conflict of interest and should not' rely solely on this report in evaluating whether or not to buy or sell securities of issuers discussed herein. 336 TD Wealth Bill MacMillan THE CORPORATION OF THE CITY OF PICKERING (7AS047A) As of May 28, 2018 PORTFOLIO PERFORMANCE (CAD) 2017.tu�$ 01/01/2017 - 12/31/2017 Starting Value Inflows Outflows Income Ending Value $ 10,303,070.53 $ 0.00 $ -107,536.17 $ 193,717.17 $ 10,384,480.84 Time -Weighted Perf.-Net Money -Weighted Perf.-Net 1.834 % 1.841 % Notes: Values in percentage are annualized for periods of more than twelve months. Account Number Account Type Name Currency Market Value (CAD) 7AS047A Cash (CAD) THE CORPORATION OF THE°CITYOF PICKERING CAD 10,342;762.82 0)05/29/2018 0) J12:52 PM I - # J J©dEll O 1 C!y ^I PICKERING Report to Executive Committee Report Number: FIN 13-18 Date: June 18, 2018 From: Stan Karwowski Director, Finance & Treasurer Subject: Development Charges Reserve•Fund — Statement of the Treasurer for the Year Ended December 31, 2017 Recommendation: That Report FIN 13-18 of the Director, Finance & Treasurer respecting the Development Charges Reserve Fund be received for information. Executive Summary: Section 43 of the Development Charges Act, 1997 (the "Act") requires that the Treasurer provides Council with a financial statement relating to the development charges by-law and reserve fund established for each service as established under Section 33 of the Act. On December 3, 2015, the Province passed Bill 73 which amended the Act to add additional reporting requirements. The Treasurer's Statement attached to this report has been expanded to comply with the new reporting requirements. Attachment 1 provides details of the activity of the Development Charges Reserve Fund for the year ended December 31, 2017 in the manner prescribed by section 43(2)(a) of the Act. Attachment 2 provides details on information related to assets funded by the development charges by-law as stipulated by section 43(2) (b) of the amended Act. The amended Act introduced a new section: 43(2.1), which now requires Council to ensure that the Statement is made available to the public. The Statement will be posted on the City's website to facilitate compliance with the amendment. Financial Implications: Starting from 2011, and continuing into 2017,.new development in the Duffin Heights neighbourhood has resulted in a spike in development charges revenues. The new development in the Seaton lands has also contributed to the increase in development charges collected in 2017. The Reserve Fund remains at a healthy balance of approximately $48.1 million pending future use of funds for qualified projects. The funds are well managed with investment returns consistently exceeding market indicators. Investment income is added to the balance of each fund as such income is earned. 338 FIN 13-18 June 18, 2018 Subject: Development Charges Reserve Fund — Statement of the Page 2 Treasurer for the Year Ended December 31, 2017 Discussion: Funds are not transferred out of the Development Charges Reserve Fund for projects until the funds are actually needed, as required by applicable accounting rules. This ensures that the Reserve Fund continues to earn interest income on the unspent monies until such time as actual expenses are incurred. The total Reserve Fund balance of $48A million represented in Attachment 1 represents the unspent monies as at December 31, 2017. Please note that there are approximately $18.3 million of committed capital projects that have been approved in prior years, but have not proceeded or are still ongoing as at December 31, 2017. Taking into account these commitments, the net fund balance available for future expenditures is approximately $29.7 million. The construction of the new Operations Centre (approved in 2017) represents 50% of committed capital projects amount of $18.3 million. In order to meet the new requirement under section 43(2.1) of the amended Act, it is recommended that the Statement be placed on the City's website upon approval by Council. Attachments: 1. 2017 Statement of the Treasurer — Development Charges Reserve Fund 2. Amount Transferred to Assets — Capital & Current Funds Transactions Prepared By: J7 t Caryn Kong, CPA, CGA Senior Financial Analyst — Capital & Debt Management Approved/Endorsed By: Stan Karwowski, CPA, CMA, MBA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer ZD(S 339 City of Pickering 2017 Statement of the Treasurer - Development Charges Reserve Fund DC Act S 43 (2)(a) Description Services to which the Developemnt Charges Relates 100% Recovery (Non -Discounted) 10% Statutory Deduction (Discounted) Fire Services (Deficit)* Roads 4 Related Operations Services (Deficit) Storm Water Mgmt Studies (Deficit) Parkland Dev Recreation & Trail Facilities Library: Facilities & Materials Total $ $ $ $ $ $ $ $ $ Opening Balance, January 1, 2017 1,057,624 21,939,539 210,797 2,670,648 (29,873) 5,419,851 9,566,196 2,483,323 43,318,105 Plus: Development Charges Collections 296,648 1,623,161 273,499 191,310 89,727 791,755 1,649,054 396,590 5,311,744 Interest Income -Internal Investments 1,971 40,888 393 4,977 (56) 10,101 17,828 4,628 80,730 Interest Income -External Investments 14,682 304,566 2,926 37,074 (415) 75,239 132,798 34,474 601,344 Less Admin Fee (1,147) (23,801) (229) (2,897) 32 (5,880) (10,378) (2,694) (46,994) Sub -Total 312,154 1,944,814 276,589 230,464 89,288 871,215 1,789.302 432.998 5,946,824 Less: Amount Transferred to Capital Funds (199,275) (481,435) (119,442) (77,697) - (552) (28,595) - (906,996) Amount Transferred to Current Funds t - - - - (257,348) - - - (257,348) Sub -Total (199,275) (481,435) (119,442) (77,697) (257,348) (552) (28,595) - (1,164,344) Closing Balance, December 31, 2017 before Budget Commitments 1,170,503 23,402,918 367,944 2,823,415 (197,933) 6,290,514 11,326,903 2,916,321 48,100,585 Less Budget Commitments 2 (1,342,616) (4,748,061) (9,907,000) (1,449,972) (397,524) (432,725) (114,543) - (18;392;441) Closing Balance, December 31, 2017 after Budget Commitments (172,113) 18,654,857 (9,539,056) 1,373,443 (595,457) 5,857,789 11,212,360 2,916,321 29,708,144 1 See Attachment 2 for details 2. Budget commitments include capital projects previously approved, but have not proceeded or still ongoing. The Information contained in the 2016 Development Charges Reserve Fund Statement is in compliance with Section 59.1(1) of the Development Charges Act, 1997, as amended. * The deficit position in the Fire Services, Roads & Related, and Admin Studies service categories will be addressed in the next DC Study. 5_3 d r�a z 0 City of Pickering Amount Transferred to Assets - Capital & Current Fund Transactions For the Year Ended December 31, 2017 DC Act S 43 (2)(b) 1 Project ongoing. Future funding for incomplete component. DC RF will be drawn when expenses are incurred. 2 Debt undertaken by the City on behalf of the Pickering Soccer Club. DC Recoverable Cost Share • Non - DC Recoverable Cost Share Description Project Code Gross Capital Costs DC RF: Funded in prior year DC RF: Funded in 2017 DC RF: Future Funding 1 Other Reserves/ Reserve Funds Type of Funds (R=Reserve, RF=Reserve Fund) Property Taxes Other Sources Type Total Funding Development Related Studies Development Charges Study 2017 1920.2127. 86,468 0 86,468 0 - - 86,468 Phase 2 South Pickering Intensificatioi 1920.2611. 223,399 0 17,700 145,381 60,318 223,399 Integrated Transportation Master Plan 1920.2290. 348,925 0 62,856 251,176 34,892 348,925 Facility Asset Management Plan 1920.2711. 97,947 66,591 6,870 0 24,487 97,947 Recreation Services Master Plan 1920.2711'. 124,127 9,642 83,453 0 31,032 124,127 Fire Protection New Fire Hall Seaton -Site Preparation 5340.1601. 430,000 74,946 1,836 342,468 10,750 R -City's Share 430,000 New Fire Hal Seaton - Design 5340.1602. 356,500 0 197,440 150,147 8,913 R -city's Share 356,500 Transportation ES 2000 RO-10 Sidewalk & Streetlight 5321.0016. 21,282 0 5,763 0 15,520 Loan 10 Yr 21,282 5321.1002+10 DH -7 and DH -8 Zents Drive Oversizinc 03+1704 286,150 165,077 92,457 0 28,616 R -City's Share 286,150 DH -11 Duffin Heights - North Collector 5321.1201. 125,600 0 29,460 83,580 12,560 R -City's Share 125,600 Park Crescent (Sandcastle Court to CI 5321.1303. 1,000,900 358,750 31,991 109,709 500,450 R -city's Share 1,000,900 13I-15 Squires Beach Road - Intersectio 5321.1607. 607,369 265,835 84,562 105,130 151,842 R -City's Share 607,369 RU -13 Salem Road - Road Reconstruc 5321.1608. 2,200,000 7,563 2,384 1,090,053 1,100,000 Debt 10 -Yr 2,200,000 B-29 Sandy Beach Road - EA, Design 5321.1609. 675,000 0 53,892 283,608 37,500 R-AIP 300,000 Loan 10 -Yr 675,000 Kingston Rd. & Brock Rd. Streetlights , 5321.1603. 979,500 0 162,060 312,690 354,750 R -City's Share 150,000 Prov Budget Gra 979,500 Walnut Lane Extension Study & EA an 5321.1703. 461,226 0 18,867 327,052 115,307 R -City's Share 461,226 Stormwater Management B-15 Krosno Creek - Erosion Control o 5321.1205. 310,345 27,427 27,841 31,859 223,218 R -City's Share 310,345 Browning Avenue Storm Sewer Replac 5410.1102. 244,079 0 4,939 0 74,644 RF-FGT 164,497 Debt 5 -Yr 244,080 York SEC & Pine Creek Outfall & Channel - Recon; 5410.1501. 1,046,534 0 44,918 48,117 396,624 R -City's Share 556,875 Prov ICA Grant 1,046,534 Operations Facility & Vehicles Sidewalk Plow with Attachments 5311.1703. 132,713 0 119,442 0 13,271 R -city's Share 132,713 Parks Dev & Indoor Facilities Duffin Heights - Village Green (West) ( 5780.1419. 197,261 173,038 552 0 23,671 RF -Parkland 197,261 Indoor Soccer Facility and Land - Design & Construction 5719.1401. 7,296,605 3,340,991 28,595 114,543 78,375 R -OCs City's Sha 101 3,734,000 Debt 15-Yr2 7,296,605 Grand Total - 17,251,931 4,489,860 1,164,344 3,395,514 2,030,491 150,829 6,020,891 17,251,931 1 Project ongoing. Future funding for incomplete component. DC RF will be drawn when expenses are incurred. 2 Debt undertaken by the City on behalf of the Pickering Soccer Club. Og DICKERING Report to Executive Committee Report Number: FIN 14-18 Date: June 18, 2018 From: Stan Karwowski Director, Finance & Treasurer Subject: Annual Indexing — Development Charges and Seaton Financial Impacts Agreement Recommendation: 1. That Report FIN 14-18 of the Director, Finance & Treasurer be received; 2. That effective July 1, 2018 as provided for in By-law No. 7595/17, the Development Charges (the "DCs") referred to in Schedule "C" of that By-law be increased by a 6 month period indexing of 1A percent, and for those non- residential Seaton employment lands lying north of the Highway 407 corridor, be indexed effective December 31, 2018; 3. That effective July 1, 2018 as provided for in By-law No. 7595/17, the DCs referred to in Schedule "D" of that By-law be increased by an annual indexing of 3.3 percent; 4. That effective July 1, 2018 the payments related to "10 per cent Soft Services" as provided for by the Seaton Financial Impacts Agreement dated November 26, 2015 be increased by an annual indexing of 3.3 per cent; and 5. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: The Development Charges Act 1997 and Ontario Regulation 82/98, and By-law No. 7595/17 provide for an automatic annual adjustment to the City's development charges based on the Non-residential Building Construction Price Index in , order to keep development charges revenues current with construction costs. The Non- residential Building Construction Price Indexes for the six-month period ending March 31, 2018 is 1.4% and the annual period ending March 31, 2018 is 3.3 per cent. Adoption of the recommendations of this report will put into effect the higher rate for the period of July 1, 2018 to June 30, 2019. Attachment 1 provides the DCs by service category for the City-wide area in Pickering excluding the Seaton Lands with the new rates reflecting the annual indexing of 3.3 per 342 FIN 14-18 June 18, 2018 Subject: Annual Indexing and Development Charges for Page 2 City -Wide and Seaton Lands cent for apartments dwelling units, and six-month indexing of 1A per cent for the remaining residential dwelling units and non-residential charges. Attachment 2 provides the DCs by service category for the Seaton Lands, and the new rates with the 6 month period indexing of 1.4 per cent as well as additional charges applicable to development in Seaton as approved in the Seaton Financial Impacts Agreement (FIA). 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 construction costs. Discussion: As provided for in Ontario Reg. 82/98, s.7, and in section 16 of the City's By-law No. 7595/17, the development charges charged by the City for all types of development shall 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, 2018, thereby assisting in keeping revenues in line with the costs that development charges fund. Note that in the first quarter of 2018, Statistics Canada released the first building construction price indexes that included both new residential and non-residential building construction in Canada. The City continues to use the non-residential building construction price index for the purpose of indexing the DCs rates. 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 1.4 per cent for the six-month period from Oct. 1, 2017 to March 31, 2018, and 3.3 per cent for the annual period from April 1, 2017 to March 31, 2018. The change is reflected in the tables attached. The most recent 2017 DC Background Study was completed in December 2017. DC By-law No. 7595/17, section 16(1)(i) provides that the rates in Schedule "C" shall be adjusted on July 1, 2018 in accordance with the change in index for the 6 month period ending March 31, 2018. Attachment 4 provides the change in rates in Schedule "C" from January 1 to July 1, 2018 based on the 1.4 per cent indexing. Schedule "C" is applicable to the new DCs rates made effective on January 1, 2018 as a result of the 2017 DC Background Study. The same By-law, under section 16(1)(iii) provides that the rates in Schedule "D" shall be adjusted on July 1, 2018 in accordance with the change in index for the annual period ending March 31, 2018. Schedule "D" is applicable to residential apartments dwelling units for the area outside of Seaton. Attachment 5 provides the change in rates in Schedule "D" from January 1 to July 1, 2018 based on the 3.3 per cent indexing. The 343 FIN 14-18 June 18, 2018 Subject: Annual Indexing and Development Charges for Page 3 City -Wide and Seaton Lands implementation of new DCs rates for apartment dwellings units was delayed to accommodate the long-term planning and construction cycle associated with this development. Continuing from previous years, City staff are including in the DC annual indexing report a Seaton DC section based on the Seaton FIA. Sections 4 - 6 of the FIA outline the DC -related financial terms of the agreement. Note that of all the 3 services collectible based on the Seaton FIA, the "10% Soft Services" is the only service to be indexed. Attachment 3 provides the further details on these charges, with the 3.3 per cent indexing. The Seaton DC rate is lower than the City-wide DC rate to reflect the fact that the Seaton Landowner Group (SLG) is 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, Section 5.1 4. Schedule "C" — City of Pickering Schedule of Development Charges 5. Schedule "D" — City of Pickering Schedule of Development Charges for Residential Apartments Dwelling Units for the Area Outside of Seaton Prepared By: Caryn Kong, CPA, CGA Senior Financial Analyst — Capital & Debt Management 344 Approved/Endorsed By: Stan Karwowski, CPA, CMA, MBA Director, Finance & Treasurer FIN 14-18 June 18, 2018 Subject: Annual Indexing and Development Charges for Page 4 City -Wide and Seaton Lands Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer S,2ae 345 City of Pickering City -Wide Development Charges (Excludes Seaton Lands) Development Charges By-law No. 7595/17 Effective July 1, 2018 1 Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning provision of the Transportation requirements in addition to other funding contributions. Per Residential Dwelling Unit By Type Non -Residential Charges Apt Dwellings Apt Dwellings Singles or Semi- with 2 or more with less than Other Non -Residential per Sq. Ft of Total Floor Service Category Detached bdrms 2 bdrms Dwellings Area Other Services Related to a Highway $447 $230 $168 $361 $0.15 Protection Services 901 463 340 728 0.34 Parks and Recreation Services 4,919 2,527 1,854 3,972 0.40 Library Services 1,101 566 415 889 0.08 Administration Studies 281 145 106 227 0.10 Stormwater Management 292 150 111 236 0.10 Transportation 1 6,608 3,394 2,492 5,335 1.86 Total $14,549 $7,475 $5,486 $11,748 $3.03 1 Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning provision of the Transportation requirements in addition to other funding contributions. City of Pickering Seaton Lands Development Charges and Financial Impacts Agreement (FIA) Charges Development Charges (DC) By-law No. 7595/17 and FIA Article 5 Effective July 1, 2018 DC By-law No. 7595/17 Per Residential Dwelling Unit By Type Non -Residential Charges Service Category Apt Dwellings Apt Dwellings Singles or Semi- with 2 or with less than Detached more bdrms 2 bdrms Other Dwellings Non -Residential per Sq. Ft of Total Floor Area 5 Prestige Employment Land in Seaton (per Net Hectare) Other Services Related to a Highway $447 • $283 $200 $361 $0.15 $5,527 Protection Services 901 570 404 728 0.34 - 11,591 Parks and Recreation Services 4,919 3,108 2,201 3,972 0.40 13,447 Library Services 1,101 696 493 - 889 0.08 2,641 Administration Studies 281 177 ' 227 0.10 3,610 Stormwater Management 292 185 131 236 0.10 • 3,553 Transportation 1 0 0 0 0 0.00 0 Total DC By-law No.7595/17 $7,941 $5,019 $3,429 $6,413 $1.17 $40,369 Per Sq. Ft of Total SLG FIA Floor Area 10% Soft Services 2 $803 $367 $367 $637 $0.093 $0.093 Non Indexed Municipal Buildings 3 189 86 86 150 n/a n/a Community Uses 4 300 137 137 238 n/a n/a Total SLG FIA $1,292 $590 $590 $1,025 $0.093 $0.093 $40,369/ha & Total Charges -Seaton Lands $9,233 $5,609 $4,019 $7,438 $1.263 $0.093/sq. ft 1 Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning provision of the Transportation requirements in addition to other funding contributions. 2 Breakdown by service category is available upon request. Not applicable to lands owned by the Province. For residential development, payment is due at subdivision registration except for mixed-use or multi -use or multi -residential development blocks subject to site plan approval. For all other development, payment is due prior to building permit issuance. Subject to annual indexing. 3 Applicable to the first 11,280 S.D.Es built on SPL Lands, due prior to building permit issuance. No indexing Applicable to the first 11,280 S.D.Es built on SPL Lands to a maximun payment of $3.3 million; due prior to building permit issuance. No indexing 5 Does not apply to prestige employment land in Seaton, as that development is subject to the per net Ha land area charge instead. Applies to non-residential development in the non -prestige employment land in Seaton. J:\RPTCOUNC\2018\FIN14ck Attachments 1-5 W co City of Pickering Seaton Lands - Financial impacts Agreement (FIA) Charges, Section 5.1 Section 5.1: 10% Soft Services Contribution* Effective July 1, 2018 * This contribution is to be indexed with the construction price index prescribed by the DC Act. 'FIA version (October 28, 2013) subsection 5.1 and 5.2 permits the City to charge an additional DC to compensate for the 10% soft services deduction. The calculation is based on the DC rate multiplied by 11.1V/0 as stated in the FIA agreement subsection 5:2. 19.0% of the DC Recoverable share for the Development Related Studies is comprised of costs that are subject to the 10% deduction w+J Per Residential Dwelling Unit By Type ** Non -Residential Charges Apt Prestige Dwellings Non -Residential Employment Land Singles or Semi- with 2 or Apt Dwellings with . Other per Sq. Ft of in Seaton (per Sq. Service Category Detached more bdrms less than 2 bdrms Dwellings Total Floor Area Ft) Development -Related Studies 1 $4.29 $1.95 $1.95 $3.39 0.002 0.002 Parks Development & Trails 203.78 93.12 93.12 161.60 0.017 0.017 Indoor Recreation Facilities 424.41 194.00 194.00 336.79 0.035 0.035 Library 102.07 46.64 46.64 80.95 0.009 0.009 Operations Facilities & Vehicles 68.45 31.28 31.28 54.27 0.030 0.030 Total $803.00 $367.00 $367.00 $637.00 0.093 0.093 * This contribution is to be indexed with the construction price index prescribed by the DC Act. 'FIA version (October 28, 2013) subsection 5.1 and 5.2 permits the City to charge an additional DC to compensate for the 10% soft services deduction. The calculation is based on the DC rate multiplied by 11.1V/0 as stated in the FIA agreement subsection 5:2. 19.0% of the DC Recoverable share for the Development Related Studies is comprised of costs that are subject to the 10% deduction w+J ATTACH MENT #'-/ TO REPORT ` Al_ILj- I Schedule "C" City of Pickering Schedule of Developement Charges -DC By-law No. 7595/17 Effective Jan 1, 2018 Effective July 1, 2018 Indexed at 1.40% Per Residential Dwelling Unit By Type Non -Residential Charges Apt Non- Prestige Apt Dwellings Residential Employment Singles or Dwellings with less per Sq. Ft of Land in Semi- with 2 or than 2 Other Total Floor Seaton (per Service Category Detached more bdrms bdrms Dwellings Area Net Hectare) Other Services Related to a Highw $441 $279 $197 $356 $0.15 $5,451 Protection Services 889 562 398 718 0.33 11,431 Parks and Recreation Services 4,851 3,065 2,171 3,917 0.39 13,261 Library Services 1,086 686 486 877 0.08 2,605 Administration Studies 277 175 124 224 0.10 3,560 Stormwater Management 288 182 129 233 0.10 3,504 Total Municipal Wide Services $7,832 $4,949 $3,505 $6,325 $1.15 $39,812 Outside of Seaton Lands: Transportation t 6,517 4,117 2,917 5,261 1.83 0 Total Services Outside of Seaton Lands $6,517 $4,117 $2,917 $5,261 $1.83 $0 Seaton $7,832 $4,949 $3,505 $6,325 $1.15 $39,812 Rest of Pickering -City wide $14,349 $9,066 $6,422 $11,586 $2.98 Effective July 1, 2018 Indexed at 1.40% 1' Does not apply to Seaton Lands.. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning provision of the Transportation requirements in addition to other funding contributions. NA- See Schedule "D" indexed at 3.3% 349 Per Residential Dwelling Unit By Type Non -Residential Charges Apt Non- Prestige Apt Dwellings Residential Employment Singles or Dwellings with less per Sq. Ft of Land in Semi- with 2 or than 2 Other Total Floor Seaton (per Service Category Detached more bdrms bdrms Dwellings Area Net Hectare) Other Services Related to a Highws $447 $283 $200 $361 $0.15 5,527 Protection Services 901 570 - 404. 728 0.34 11,591 Parks and Recreation Services 4,919 3,108 2,201 3,972 0.40 13,447 Library Services 1,101 696 493 889 0.08 2,641 Administration Studies 281 177 126 227 0.10 3,610 Stormwater Management 292 185 131 236 0.10 3,553 Total Municipal Wide Services $7,941 $5,019 $3,555 $6,413 $1.17 $40,369 Outside of Seaton Lands: Transportation 1 6,608 4,175 2,958 5,335 1.86 0 Total Services Outside of Seaton Lands $6,608 $4,175 $2,958 $5,335 $1.86 • 0 Seaton $7,941 $5,019 $3,555 $6,413 $1.17 $40,369 Rest of Pickering -City wide $14,549 NA NA $11,748 $3.03 1' Does not apply to Seaton Lands.. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning provision of the Transportation requirements in addition to other funding contributions. NA- See Schedule "D" indexed at 3.3% 349 ATTACHMENT ;I O REPORT# .1r� q Schedule "D" City of Pickering Schedule of Developement Charges for Residential Apartments Dwelling Units for the Area Outside of Seaton DC By-law No. 7595/17 Effective Jan 1, 2018 Effective July 1, 2018 Indexed at 1.40% RESIDENTIAL Apt Dwellings with 2 Apt Dwellings with Service Category or more bdrms less than 2 bdrms Other Services Related to a Highway $223 $163 Protection Services 448 329 Parks and Recreation Services 2,446 1,795 Library Services 548 402 Administration Studies 140 103 Stormwater Management 145 107 Total Municipal Wide Services $3,950 $2,899 Outside of Seaton Lands: Outside of Seaton Lands: Transportation 1 3,286 2,412 Total Services Outside of Seaton Lands $3,286 $2,412 Rest of Pickering -City wide $7,236 $5,311 Effective July 1, 2018 Indexed at 1.40% 1 Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning provision of the Transportation requirements in addition to other funding contributions. 350 RESIDENTIAL Apt Dwellings with 2 Apt Dwellings with Service Category or more bdrms less than 2 bdrms Other Services Related to a Highway $230 $168 Protection Services 463 340 Parks and Recreation Services 2,527 1,854 Library Services 566 415 Administration Studies 145 106 Stormwater Management 150 111 Total Municipal Wide Services $4,081 $2,994 Outside of Seaton Lands: Transportation 1 3,394 2,492 Total Services Outside of Seaton Lands $3,394 $2,492 Rest of Pickering -City wide $7,475 $5,486 1 Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning provision of the Transportation requirements in addition to other funding contributions. 350 GI, a,( DICKERING Report to Executive Committee Report Number: FIN 15-18 Date: June 18, 2018 From: Stan Karwowski Director, Finance & Treasurer Subject:. 2018 Final Tax Due Date for Commercial, Industrial, and Multi -Residential Realty Tax Classes Recommendation: 1. That Report FIN 15-18 of the Director, Finance & Treasurer be received; 2. That the Director, Finance & Treasurer be authorized to issue the final 2018 Tax Bills for Commercial, Industrial and Multi -residential properties with a due date of September 27, 2018; That.the Director, Finance & Treasurer be authorized to make any changes or undertake any actions necessary, including altering the due date, in order to ensure that the tax billing process is completed and in order to comply with Provincial Regulations; 4. That the draft By-law attached to this report be enacted; and 5. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: Adoption of the above recommendations and passing the. attached By-law provides for the final 2018 tax billing for non-residential tax classes (commercial, industrial and multi -residential). During the last few years, the City has billed the final non-residential taxes separately, mainly due to the additional steps that are required as a result of the capping legislation. Financial Implications: The attached By-law is for the final billing of 2018 property taxes for commercial, industrial, and multi -residential properties. This billing of final non-residential property taxes will raise approximately $32.7 million for the City, Region of Durham, and the School Boards. Tax bills for the residential tax classes were mailed during the last week of May, with due dates of June 27th and September 27th • 351 FIN 15-18 June 18, 2018 Subject: 2018 Final Tax Due Date for Commercial, Industrial and Page 2 Multi -Residential Realty Tax Classes Discussion: In 1998, the Province introduced Current Value Assessment or CVA on a Province -wide basis to replace the old patchwork 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 per cent. 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 2018 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 replaced the original capping legislation of Bill 79 introduced and approved in 1998). This legislation was put in place to limit assessment reform related increases to 5 per cent 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 like a banker in this process. For example, the total cost of the capping protection for commercial tax class is paid for by the other commercial properties throughout the Region by having a portion of their property tax decrease withheld (clawed back). As part of the Region -wide process, the City of Pickering uses a Provincial database program called "Online Property Tax Analysis" (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 "cut-off date" of Apr 13, 2018. Bill 83 — Legislative Changes to Capping Legislation In 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 annualized taxes raised from 5 per cent to 10 per cent. 2. Annual threshold increase capped at 5 per cent 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. 352 FIN 15-18 June 18, 2018 Subject: 2018 Final Tax Due Date for Commercial, Industrial and Page 3 Multi -Residential Realty Tax Classes 4. The minimum CVA tax for new construction properties was 60 per cent in 2006. New construction properties are now fully phased -in at 100 per cent 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 per cent of previous year's CVA level taxes up to a new maximum of 10 per cent. 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 per cent of previous year's annualized taxes would be maintained. For 2018 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. Under the Municipal Act, Subsection 343(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 2018 Billing Due Dates 353 February 27 April 27 June 27 September 27 Instalment Dates Residential X X X X 4 Non-residential X X X 3 353 FIN 15-18 June 18, 2018 Subject: 2018 Final Tax Due Date for Commercial, Industrial and Page 4 Multi -Residential Realty Tax Classes As the above table indicates, the residential taxpayer has four instalment dates and the non-residential taxpayer has three dates. In the past, the City has provided indirect cash flow assistance to the non-residential taxpayer by providing them the advantage of skipping the June instalment date, and by having the final instalment due in the fall. This year, taxation staff are recommending that Council continue with the June payment holiday for non-residential properties. Communication Strategy In addition to mailing the tax bills, the City.will advertise the tax instalment due dates on the City's webpage and in the Pickering News Advertiser prior to each tax due date. Attachments: 1. By-law to Establish the 2018 Final Property Taxes and Due Date for the Commercial, Industrial and Multi -Residential Tax Classes Prepared By: Mik Jones Supervisor, Taxation Approved / Endorsed By: teereemagswar Stan Karwowski Director, Finance & Treasurer Recommended for the consideration of Pickering Ci Council Tony Prevedel, P.Eng. Chief Administrative Officer 354 ATTACHMENT# 1 TO REPORT # i S-4.j� The Corporation of the City of Pickering By-law No. XXXX/18 Being a By-law to Establish the 2018 Final Property Tax 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.. 05-2018 to establish tax ratios, and By-law No. 07-2018 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. 08-2018 to set and levy rates of taxation for Regional Solid Waste Management, and By-law No. 06-2018 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. 7601/18) before the adoption of the estimates for the current year; and, Whereas sub section 342 (2) of the Municipal Act, 2001, S.O. 2001, c.25 as amended, permits the issuance of separate tax bills for separate classes of real property for year 2018. Now therefore the Council of the Corporation of the City of Pickering hereby enacts as follows: 1. For the year 2018, The Corporation of the City of Pickering (the "City")'shall levy upon all Property Classes (Residential, Commercial, Industrial and Multi - residential) as set out in Schedule "A" of By-law 7616/18, 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 shall be reduced by the amount of the interim levy for 2018. 355 By-law No. Page 2 4. The 2018 final tax capping calculations for the industrial, commercial and multi - residential realty tax classes are based on a freeze date of May 24, 2018. 5. The 2018 taxes owed for the commercial, industrial and multi -residential assessed properties shall be due in one instalment on September 27, 2018, 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 25th day of June, 2018. 356 David Ryan, Mayor Debbie Shields, City Clerk DICKERING (44 Report to Executive Committee Report Number: FIN 16-18 Date: June 18, 2018 From: Stan Karwowski Director, Finance & Treasurer Subject: Strategic Asset Management Policy Recommendation: 1. That Report FIN 16-18 of the Director, Finance & Treasurer regarding the Strategic Asset Management Policy be received; 2. That the Strategic Asset Management Policy, attached to this report, be approved; That the Chief Administrative Officer and the Director, Finance & Treasurer be authorized to make any interpretations of the Policy, make rulings that will allow the conduct of business to proceed, and to take any actions necessary to this effect; and, That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this Policy. Executive Summary: The City is required to have a Strategic Asset Management Policy as per the new Ontario Regulation 588/17 under the Infrastructure.forJobs and Prosperity Act, 2015, which defines regulations for Asset Management Planning for Municipal Infrastructure. Asset management is defined as: the coordinated activity of an organization to realize value from assets. It considers all asset types, and includes all activities involved in the asset's life cycle from planning and acquisition/creation; to operational and maintenance activities, rehabilitation, and renewal; to replacement or disposal and any remaining liabilities. Asset management is comprehensive and normally involves balancing costs, risks, opportunities and performance benefits to achieve the total lowest lifecycle cost for each asset. Financial Implications: While there are no immediate identifiable financial implications associated with the adoption of this report and the attached policy, in the long-term it will impact the City's business practices regarding the development and implementation of the City's asset management program. This will eventually lead to changes in the annual budgeting process. This is a major change for all Ontario municipalities. .Discussion: Asset management builds on the Public Sector Account Board (PSAB) standard PS 3150, which required municipal government to account and report on their Tangible Capital Assets (TCA), effective with fiscal years starting January 1, 2009. The City, through its annual financial statements, reports on its TCA on Note 10. 357 FIN 16-18 June 18, 2018 Subject: Strategic Asset Management Policy Page 2 The objective of this policy is to provide leadership and commitment to the development and implementation of the City's asset management program. It is intended to guide the consistent use of asset management across the organization, to facilitate logical and evidence -based decision-making for the management of municipal infrastructure assets and to support the delivery of sustainable community services now and in the future. By using sound asset management practices, the City will try to ensure that all municipal infrastructure assets meet performance levels and continue to provide desired service levels in the most efficient and effective manner. This policy demonstrates an organization -wide commitment to the good stewardship of municipal infrastructure assets, and to improved accountability and transparency to the community through the adoption of best practices regarding asset management planning. The policy, in its draft form, was shared with the Directors and Finance, and their comments have been considered in the final policy. The policy will be posted on the City's Internet and intranet. Attachments: 1. City Policy - Strategic Asset Management Policy 2. Infrastructure for Jobs and Prosperity Act, 2015, Ontario Regulation 588/17 3. FIN 050 Accounting for Tangible Assets Policy Prepared By: Julie S. Robertson Senior Financial Analyst Approved/Endorsed By: Stan Karwowski Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer 358 cry 6f DICKERING ATTACHMENT #ATO REPORT I(-- 1 y Policy Procedure Title: Strategic Asset Management Policy Policy Number FIN ### Reference Date Originated (m/d/y) Date Revised (m/d/y) Pages Infrastructure for Jobs and Prosperity Act, 2015, Ontario June 25, 2018 ' 7 Regulation 588/17 FIN 050 Accounting for Tangible Assets Policy Resolution #/18 (June Council Meeting) Approval: Chief Administrative Officer Point of Contact Senior Financial Analyst, Finance Policy Objective The objective of this policy is to provide leadership and commitment to the development and implementation of the City of Pickering's asset management program. It is intended to guide the consistent use of asset management across the organization, to facilitate logical and evidence -based decision-making for the management of municipal infrastructure assets and to support the delivery of sustainable community services now and in the future. By using sound asset management practices, the City will endeavor to ensure that all. municipal infrastructure assets meet, through best efforts, performance levels and continue to provide desired service levels in the most efficient and effective manner. This policy demonstrates an organization -wide commitment to the good stewardship of municipal infrastructure assets, and to improved accountability and transparency to the community through the adoption of best practices regarding asset management planning. Index 01 Definitions 02 Background 03 Procedures 04 Roles and Responsibilities 05 Authority 06 Scope 359 07 Principles 08 Alignment with the City's Strategic Direction 01 Definitions 01.01 Asset Management (AM) - the coordinated activity of an organization to realize value from assets. It considers all asset types, and includes all activities involved in the asset's lifecycle from planning and acquisition/creation; to operational and maintenance activities, rehabilitation, and renewal; to replacement or disposal and any remaining liabilities. Asset Management is holistic and normally involves balancing costs, risks, opportunities and performance benefits to achieve the total lowest lifecycle cost for each asset. 01.02 Asset Management Information System - a combination of processes, data, software, and hardware applied to provide the essential outputs for effective Asset Management such as reduced risk and optimum infrastructure investment. 01.03 Asset Management Plan (AMP) - documented information that specifies the activities, resources, and timescales required for an individual asset, or a grouping of assets, to achieve the organization's Asset Management objectives. 01.04 Capitalization Threshold - the value of a municipal infrastructure asset at or above which a municipality will capitalize the value of it. If below, the municipality will expense the value of it. 01.05 Level of Service - parameters, or combination of parameters, which reflect social, political, environmental and economic outcomes that the organization delivers. Parameters can include, but are not necessarily limited to, safety, customer satisfaction, quality, quantity, capacity, reliability, responsiveness, environmental acceptability, cost, and availability. 01.06 Lifecycle Activities - activities undertaken with respect to a municipal infrastructure asset over its service life, including constructing, maintaining, renewing, operating and decommissioning, and all engineering and design work associated with those activities. 01.07 Municipal Infrastructure Asset (MIA) - an infrastructure asset directly owned by a municipality or included on the consolidated financial statements of a municipality, but does not include an infrastructure asset that is managed by a joint municipal water board. 02 Background 02.01 Asset Management (AM) has been an ongoing practice at the City since the development of Section 3150 of the Public Sector Accounting Board (PSAB) Handbook in 2009. At the City, Finance staff, with the assistance of other Policy Title: Strategic Asset Management Policy Page 2 of 7 3etvIicy Number: FIN ### department staff, have worked continuously towards the development and maintenance of a comprehensive and accurate inventory of all MIAs that serves as a strong foundation for long-term financial planning and budgeting. This policy will ensure that all of the work that has been put into the development of the City's MIA inventory is leveraged to optimize investment and the sustainability of municipal infrastructure. 02.02 The City is responsible for providing a range of services to the community, including transportation networks, stormwater management, parks and facilities. To deliver these services, it owns and manages a diverse MIA portfolio of roads, bridges, culverts, parks and facilities. As the social, economic, and environmental wellbeing of the community depends on the reliable performance of these MIAs, it is critical to implement a systemic, sustainable approach to their management. 02.03 AM is such an approach, and refers to the set of policies, practices and procedures that allow an organization to realize maximum.value from its MIAs. An AM approach allows organizations to make informed decisions regarding the planning, building, operating, maintaining, renewing, replacing and disposing of MIAs through a wide range of lifecycle activities. Furthermore, it is an organization -wide process that involves the coordination of activities across multiple departments and service areas. As such, it is useful to adopt a structured and coordinated approach to outlining the activities, roles and responsibilities required of corporate staff, as well as the key principles that should guide all AM decision-making. 02.04 A comprehensive and holistic AM approach will support cost efficient and cost effective delivery of expected levels of service and ensure that due regard and process are applied to the long-term management and stewardship of all MIAs. In addition, it will align the City with provincial standards and regulations such as the Infrastructure for Jobs and Prosperity Act, 2015, Ontario Regulation 588/17, or other current provincial legislation, enabling the organization to take full advantage of available grant funding opportunities. 02.05 The development, support and maintenance of an AM program requires the ongoing use of an organization -wide suite of software modules. This Asset Management Information System should include at a minimum a digital asset register, a geographic information system, and a financial management system. 02.06 The approval of this policy is an important step towards integrating the City's priorities with its AM program, and ensuring that critical MIAs and vital services are maintained and provided to the community in a safe, reliable, sustainable manner. 03 Procedures 03.01 The City will implement an AM program throughout all departments. The program will promote lifecycle and risk management of all MIAs, with the goal of Policy Title: Strategic Asset Management Policy Policy Number: FIN ### Page 3 of 7 361 achieving the lowest total cost of ownership while meeting desired levels of service. 03.02 The City will implement best practices regarding AM planning, including: a) Complete and Accurate Asset Data b) Condition Assessment Protocols c) Risk and Criticality Models d) Lifecycle Strategy Development e) Financial Strategy Development f) Level of Service Framework 03.03 The City, through best efforts, will maintain an asset inventory of all MIAs which includes unique ID, description, location information, value (both historical and replacement), performance characteristics and/or condition, estimated remaining life and estimated repair, rehabilitation or replacement date; and estimated repair, rehabilitation or replacement costs, wherever possible. Reliable, consistent, and current asset condition data and costing is fundamental to a comprehensive and sustainable AMP. 03.04 The City will develop an AMP that incorporates all infrastructure categories and MIAs that meet the capitalization thresholds outlined in the organization's Accounting for Tangible Capital Assets Policy, as updated. 03.05 The AMP will be updated at least every five.years in accordance with 0. Reg. 588/17 requirements, or current provincial legislation, to promote, document and communicate continuous improvement of the AM program. 03.06 The City, through best efforts, will integrate AMPs and practices with its long- term financial planning and budgeting strategies. 03.07 The City will explore innovative funding and service delivery opportunities, including but not limited to grant programs, Public -Private Partnerships (P3), Alternative Financing and Procurement (AFP) approaches, and shared provision of services, as appropriate. 03.08 The City, through best efforts, will develop meaningful performance metrics and reporting tools. 03.09 The City, through best efforts, will consider the risks and vulnerabilities of MIAs to climate change and the actions that may be required including, but not limited to, anticipated costs that could arise from these impacts, adaptation opportunities, mitigation approaches, disaster planning and contingency funding. Impacts may include matters relating to operations, levels of service and lifecycle management. Policy Title: Strategic Asset Management Policy Page 4 of 7 3licy Number: FIN ### 03.10 The City will align all AM planning with the Province of Ontario's land -use planning framework, including any relevant policy statements issued under section 3(1) of the Planning Act; shall conform with the provincial plans that are in effect on that date; and, shall be consistent with all municipal official plans. 03.11 The City will coordinate planning for interrelated MIAs with separate ownership structures by pursuing collaborative opportunities with neighbouring municipalities and jointly -owned municipal bodies wherever viable and beneficial. 03.12 The City will develop processes and provide opportunities for residents, stakeholders, and other interested parties to offer input into AM planning through the annual budget process. 04 Roles and Responsibilities 04.01 Council a) Approve and support this policy; b) Maintain adequate organizational capacity to support the core practices of the AM program; and c) Prioritize effective stewardship of assets in adoption and ongoing review of policy and budgets. 04.02 Director, Finance & Treasurer: a) Development of policy, and updates as required; b) Provide corporate oversight to goals and directions and ensure the AM program aligns with the City's strategic priorities; and c) Ensure that adequate resources are available to implement and maintain core AM practices. 04.03 Senior Management Team: a) Provide departmental staff coordination; b) Establish and monitor levels of service; and c) Track, analyze and report on AM program progress and results. 04.04 Senior Financial Analyst: a) Development of policy, and updates as required; b) Provide organization -wide leadership in AM practices and concepts; Policy Title: Strategic Asset Management Policy Policy Number: FIN ### Page 5 of 7 363 c) Provide departmental staff coordination; d) Establish and monitor levels of service; and e) Coordinate and track AM program implementation and progress. 04.05 Departmental Staff: a) Utilize any business processes and technologytools for the AM program; b) Participate in implementation task teams to carry -out AM activities; and c) Establish and monitor levels of service. 05 Authority This policy shall be administered by the Finance Department, and the Treasurer shall have the authority to interpret any provisions in this policy necessary for the good and efficient conduct and business of the City. Any changes shall be approved by Council. 06 Scope This policy applies to all operations of the City including any Agencies, Boards and Commissions. It applies to the Pickering Public Library to the extent that it does not conflict with the role of the Board or Chief Executive Officer under the Public Libraries Act. 07 Principles 07.01 The City shall consider the following: principles as outlined in section 3 of the Infrastructure for Jobs and Prosperity Act,. 2015, when making decisions regarding AM: a) Infrastructure planning and investment should take a long-term view; b) Infrastructure planning and investment should take into account any applicable budgets, fiscal restraints and fiscal plans; c) Infrastructure priorities should be clearly identified in order to better inform investment decisions respecting infrastructure; d) Infrastructure planning and investment should ensure the continued provision of core public services; e) Infrastructure planning and investment should promote economic competitiveness and productivity; Policy Title: Strategic Asset Management Policy Page 6 of 7 3alicy Number: FIN ### f) Infrastructure planning and investment should ensure that the health and safety of workers involved in the construction and maintenance of infrastructure assets is protected; g) Infrastructure planning and investment should foster innovation by creating opportunities to make use of innovative technologies, services and practices; h) Infrastructure planning and investment should be evidence based and transparent, and, subject to any restrictions or prohibitions under an Act or otherwise by law on the collection, use or disclosure of information; i) Information with implications for infrastructure planning should be shared between the City and broader public sector entities, and should factor into investment decisions respecting infrastructure; j) Where provincial or municipal plans or strategies have been established in Ontario, under an Act or otherwise, but do not bind or apply to the City, as the case may be, the City should nevertheless be mindful of those plans and strategies and make investment decisions respecting infrastructure that support them, to the extent that they are relevant.; Infrastructure planning and investment should promote accessibility for persons with disabilities; I) Infrastructure planning and investment should consider the impact of infrastructure on the environment; m) Infrastructure planning and investment should endeavor to make use of acceptable recycled aggregates; and n) Infrastructure planning and investment should promote community benefits, being the supplementary social andeconomic benefits arising from an infrastructure project that are intended to improve the well-being of a community affected by the project. 08 Alignment with the City's Strategic Direction AM planning should endeavour to align with the strategic business objectives of the City and should be reviewed regularly to ensure that it aligns with the changing and emerging strategic goals and priorities of the organization. Please refer to all associated Policies, Procedures and Standard Operating Procedures, if applicable, for detailed processes regarding this Policy. Policy Title: Strategic Asset Management Policy Page 7 of 7 Policy Number: FIN ### 365 Francais ATTACHMENT# TO REPORT#.j� IL ti ONTARIO REGULATION 588/17 made under the INFRASTRUCTURE FOR JOBS AND PROSPERITY ACT, 2015 Made: December 13, 2017 Filed: December 27, 2017 Published on e -Laws: December 27, 2017 Printed in The Ontario Gazette: January 13, 2018 ASSET MANAGEMENT PLANNING FOR MUNICIPAL INFRASTRUCTURE CONTENTS INTERPRETATION AND APPLICATION 1. Definitions 2. Application STRATEGIC ASSET MANAGEMENT POLICIES 3. Strategic asset management policy 4. Update of asset management policy ASSET MANAGEMENT PLANS 5. Asset management plans, current levels of service 6. Asset management plans, proposed levels of service 7. Update of asset management plans 8. Endorsement and approval required 9. Annual review of asset management planning progress 10. Public availability Table 1 Water assets Table 2 Wastewater assets Table 3 Stormwater management assets Table 4 Roads Table 5 Bridges and culverts 11. Commencement COMMENCEMENT INTERPRETATION AND APPLICATION Definitions 1. (1) In this Regulation, "asset category" means a category of municipal infrastructure assets that is, (a) an aggregate of assets described in each of clauses (a) to (e) of the definition of core municipal infrastructure asset, or (b) composed of any other aggregate of municipal infrastructure assets that provide the same type of service; ("categorie de biens") "core municipal infrastructure asset" means any municipal infrastructure asset that is a, (a) water asset that relates to the collection, production, treatment, storage, supply or distribution of water, (b) wastewater asset that relates to the collection, transmission, treatment or disposal of wastewater, including any wastewater asset that from time to time manages stormwater, (c) stormwater management asset that relates to the collection, transmission, treatment, retention, infiltration, control or disposal of stormwater, (d) road, or (e) bridge or culvert; ("hien d'infrastructure municipale essentiel") "ecological functions" has the same meaning as in Ontario Regulation 140/02 (Oak Ridges Moraine Conservation Plan) made under the Oak Ridges Moraine Conservation Act, 2001; ("fonctions ecologiques") "green infrastructure asset" means an infrastructure asset consisting of natural or human -made elements that provide ecological and hydrological functions and processes and includes natural heritage features and systems, parklands, 366 stormwater management systems, street trees, urban forests, natural channels, permeable surfaces and green roofs; ("bien d'infrastructure verte") "hydrological functions" has the same meaning as in Ontario Regulation 140/02; ("fonctions hydrologiques") "joint municipal water board" means a joint board established in accordancewith a transfer order made under the Municipal Water and Sewage Transfer Act, 1997; ("conseil mixte de gestion municipale des eaux") "lifecycle activities" means activities undertaken with respect to a municipal infrastructure asset over its service life, including constructing, maintaining, renewing, operating and decommissioning, and all engineering and design work associated with those activities; ("activites relatives au cycle de vie") "municipal infrastructure asset" means an infrastructure asset, including a green infrastructure asset, directly owned by a municipality or included on the consolidated fmancial statements of a municipality, but does not include an infrastructure asset that is managed by a joint municipal water board; ("bien d'infrastructure municipale") "municipality" has the same meaning as in the Municipal Act, 2001; ("municipalite") "operating costs" means the aggregate of costs, including energy costs, of operating a municipal infrastructure asset over its service life; ("frais d'exploitation") "service life" means the total period during which a municipal infrastructure asset is in use or is available to be used; ("duree de vie") "significant operating costs" means, where the operating costs with respect to all municipal infrastructure assets within an asset category are in excess of a threshold amount set by the municipality, the total amount of those operating costs. ("frais d' exploitation importants") (2) In Tables 1 and 2, "connection -days" means the number of properties connected to a municipal system that are affected by a service issue, multiplied by the number of days on which those properties are affected by the service issue. ("jours-branchements") (3) In Table 4, "arterial roads" means Class 1 and Class 2 highways as determined under the Table to section 1 of Ontario Regulation 239/02 (Minimum Maintenance Standards for Municipal Highways) made under the Municipal Act, 2001; ("arteres") "collector roads" means Class 3 and Class 4 highways as determined under the Table to section 1 of Ontario Regulation. 239/02; ("routes collectrices") "lane -kilometre" means a kilometre -long segment of roadway that is a single lane in width; ("kilometre de voie") "local roads" means Class 5 and Class 6 highways as determined under the Table to section 1 of Ontario Regulation 239/02. ("routes locales") (4) In Table 5, "Ontario Structure Inspection Manual" means the Ontario Structure Inspection Manual (OSIM), published by the Ministry of Transportation and dated October 2000 (revised November 2003 and April 2008) and available on a Government of Ontario website; ("manuel d'inspection des structures de l' Ontario") "structural culvert" has the meaning set out for "culvert (structural)" in the Ontario Structure Inspection Manual. ("ponceau structure)") Application 2. For the purposes of section 6 of the Act, every municipality is prescribed as a broader public sector entity to which that section applies. STRATEGIC ASSET MANAGEMENT POLICIES Strategic asset management policy 3. (1) Every municipality shall prepare a strategic asset management policy that includes the following: 1. Any of the municipality's goals, policies or plans that are supported by its asset management plan. 2. The process by which the asset management plan is to be considered in the development of the municipality's budget or of any long-term fmancial plans of the municipality that take into account municipal infrastructure assets. 3. The municipality's approach to continuous improvement and adoption of appropriate practices regarding asset management planning. 4. The principles to be followed by the municipality in its asset management planning, which must include the principles set out in section 3 of the Act. 367 3 5. The municipality's commitment to consider, as part of its asset management planning, i. the actions that may be required to address the vulnerabilities that may be caused by climate change to the municipality's infrastructure assets, in respect of such matters as, - A. operations, such as increased maintenance schedules, B. levels of service, and C. lifecycle management, ii. the anticipated costs that could arise from the vulnerabilities described in subparagraph i, iii. adaptation opportunities that may be undertaken to manage the vulnerabilities described in subparagraph i, iv. mitigation approaches to climate change, such as greenhouse gas emission reduction goals and targets, and v. disaster planning and contingency funding. 6. A process to ensure that the municipality's asset management planning is aligned with any of the following financial plans: i. Financial plans related to the municipality's water assets including any fmancial plans prepared under the Safe Drinking Water Act, 2002. ii. Financial plans related to the municipality's wastewater assets. 7. A process to ensure that the municipality's asset management planning is aligned with Ontario's land -use planning framework, including any relevant policy statements issued under subsection 3 (1) of the Planning Act, any provincial plans as defined in the Planning Act and the municipality's official plan. 8. An explanation of the capitalization thresholds used to determine which assets are to be included in the municipality's asset management plan and how the thresholds compare to those in the municipality's tangible capital asset policy, if it has one. 9. The municipality's commitment to coordinate planning for asset management, where municipal infrastructure assets connect or are interrelated with those of its upper -tier municipality, neighbouring municipalities or jointly -owned municipal bodies. 10. The persons responsible for the municipality's asset management planning, including the executive lead. 11. An explanation of the municipal council's involvement in the municipality's asset management planning. 12. The municipality's commitment to provide opportunities for municipal residents and other interested parties to provide input into the municipality's asset management planning. (2) For the purposes of this section, "capitalization threshold" is the value of a municipal infrastructure asset at or above which a municipality will capitalize the value of it and below which it will expense the value of it. ("seuil de capitalisation") Update of asset management policy 4. Every municipality shall prepare its first strategic asset management policy by July 1, 2019 and shall review and, if necessary, update it at least every five years. ASSET MANAGEMENT PLANS Asset management plans, current levels of service 5. (1) Every municipality shall prepare an asset management plan in respect of its core municipal infrastructure assets by July 1, 2021, and in respect of all of its other municipal infrastructure assets by July 1, 2023. (2) A municipality's asset management plan must include the following: 1. For each asset category, the current levels of service being provided, determined in accordance with the following qualitative descriptions and technical metrics and based on data from at most the two calendar years prior to the year in which all information required under this section is included in the asset management plan: i. With respect to core municipal infrastructure assets, the qualitative descriptions set out in Column 2 and the technical metrics set out in Column 3 of Table 1, 2, 3, 4 or 5, as the case may be. ii. With respect to all other municipal infrastructure assets, the qualitative descriptions and technical metrics established by the municipality. 2. The current performance of each asset category, determined in accordance with the performance measures established by the municipality, such as those that would measure energy usage and operating efficiency, and based on data from 368 4 at most two calendar years prior to the year in which all information required under this section is included in the asset management plan. 3. For each asset category, i. a summary of the assets in the category, ii. the replacement cost of the assets in the category, iii. the average age of the assets in the category, determined by assessing the average age of the components of the assets, iv. the information available on the condition of the assets in the category, and v. a description of the municipality's approach to assessing the condition of the assets in the category, based on recognized and generally accepted good engineering practices where appropriate. 4. For each asset category, the lifecycle activities that would need to be undertaken to maintain the current levels of service as described in paragraph 1 for each of the 10 years following the year for which the current levels of service under paragraph 1 are determined and the costs of providing those activities based on an assessment of the following: i. The full lifecycle of the assets. ii. The options for which lifecycle activities could potentially be undertaken to maintain the current levels of service. iii. The risks associated with the options referred to in subparagraph ii. iv. The lifecycle activities referred to in subparagraph ii that can be undertaken for the lowest cost to maintain the current levels of service. 5. For municipalities with a population of less than 25,000, as reported by Statistics Canada in the most recent official census, the following: i. A description of assumptions regarding future changes in population or economic activity. ii. How the assumptions referred to in subparagraph i relate to the information required by paragraph 4. 6. For municipalities with a population of 25,000 or more, as reported by Statistics Canada in the most recent official census, the following: i. With respect to municipalities in the Greater Golden Horseshoe growth plan area, if the population and employment forecasts for the municipality are set out in Schedule 3 or 7 to the 2017 Growth Plan, those forecasts. ii. With respect to lower -tier municipalities in the Greater Golden Horseshoe growth plan area, if the population and employment forecasts for the municipality are not set out in Schedule 7 to the 2017 Growth Plan, the portion of the forecasts allocated to the lower -tier municipality in the official plan of the upper -tier municipality of which it is a part. iii. With respect to upper -tier municipalities or single -tier municipalities outside of the Greater Golden Horseshoe growth plan area, the population and employment forecasts for the municipality that are set out in its official plan. iv. With respect to lower -tier municipalities outside of the Greater Golden Horseshoe growth plan area, the population and employment forecasts for the lower -tier municipality that are set out in the official plan of the upper -tier municipality of which it is a part. v. If, with respect to any municipality referred to in subparagraph iii or iv, the population and employment forecasts for the municipality cannot be determined as set out in those subparagraphs, a description of assumptions regarding future changes in population or economic activity. vi. For each of the 10 years following the year for which the current levels of service under paragraph 1 are determined, the estimated capital expenditures and significant operating costs related to the lifecycle activities required to maintain the current levels of service in order to accommodate projected increases in demand caused by growth, including estimated capital expenditures and significant operating costs related to new construction or to upgrading of existing municipal infrastructure assets. (3) Every asset management plan must indicate how all background information and reports upon which the information required by paragraph 3 of subsection (2) is based will be made available to the public. (4) In this section, "2017 Growth Plan" means the Growth Plan for the Greater Golden Horseshoe, 2017 that was approved under subsection 7 (6) of the Places to Grow Act, 2005 on May 16, 2017 and came into effect on July 1, 2017; ("Plan de croissance de 2017") 369 5 "Greater Golden Horseshoe growth plan area" means the area designated by section 2 of Ontario Regulation 416/05 (Growth Plan Areas) made under the Places to Grow Act, 2005. ("zone de croissance planifiee de la region elargie du Golden Horseshoe") Asset management plans, proposed levels of service 6. (1) Subject to subsection (2), by July 1, 2024, every asset management plan prepared under section 5 must include the following additional information: 1. For each asset category, the levels of service that the municipality proposes to provide for each of the 10 years following the year in which all information required under section 5 and this section is included in the asset management plan, determined in accordance with the following qualitative descriptions and technical metrics: i. With respect to core municipal infrastructure assets, the qualitative descriptions set out in Column 2 and .the technical metrics set out in Column 3 of Table 1, 2, 3, 4 or 5, as the case may be. ii. With respect to all othermunicipal infrastructure assets, the qualitative descriptions and technical metrics established by the municipality. 2. An explanation of why the proposed levels of service under paragraph 1 are appropriate for the municipality, based on an assessment of the following: i. The options for the proposed levels of service and the risks associated with those options to the long term sustainability of the municipality. ii. How the proposed levels of service differ from the current levels of service set out under paragraph 1 of subsection 5 (2). iii. Whether the proposed levels of service are achievable. iv. The municipality's ability to afford the proposed levels of service. 3. The proposed performance of each asset category for each year of the 10 -year period referred to in paragraph 1, determined in accordance with the performance measures established by the municipality, such as those that would measure energy usage and operating efficiency. 4. A lifecycle management and fmancial strategy that sets out the following information with respect to the assets in each asset category for the 10 -year period referred to in paragraph 1: i. An identification of the lifecycle activities that would need to be undertaken to provide the proposed levels of service described in paragraph 1, based on an assessment of the following: A. The full lifecycle of the assets. B. The options for which lifecycle activities could potentially be undertaken to achieve the proposed levels of service. C. The risks associated with the options referred to in sub -subparagraph B. D. The lifecycle activities referred to in sub -subparagraph B that can be undertaken for the lowest cost to achieve the proposed levels of service. ii. An estimate of the annual costs for each of the 10 years of undertaking the lifecycle activities identified in subparagraph i, separated into capital expenditures and significant operating costs. iii. An identification of the annual funding projected to be available to undertake lifecycle activities and an explanation of the options examined by the municipality to maximize the funding projected to be available. iv. If, based on the funding projected to be available, the municipality identifies a funding shortfall for the lifecycle activities identified in subparagraph i, A. an identification of the lifecycle activities, whether set out in subparagraph i or otherwise, that the municipality will undertake, and B. if applicable, an explanation of how the municipality will manage the risks associated with not undertaking any of the lifecycle activities identified in subparagraph i. 5. For municipalities with a population of less than 25,000, as reported by Statistics Canada in the most recent official census, a discussion of how the assumptions regarding future changes in population and economic activity, set out in subparagraph 5 i of subsection 5 (2), informed the preparation of the lifecycle management and financial strategy referred to in paragraph 4 of this subsection. 6. For municipalities with a population of 25,000 or more, as. reported by Statistics Canada in the most recent official census, 370 6 i. the estimated capital expenditures and significant operating costs to achieve the proposed levels of service as described in paragraph 1 in order to accommodate projected increases in demand caused by population and employment growth, as set out in the forecasts or assumptions referred to in paragraph 6 of subsection 5 (2), including estimated capital expenditures and significant operating costs related to new construction or to upgrading of existing municipal infrastructure assets, ii. the funding projected to be available, by source, as a result of increased population and economic activity, and iii. an overview of the risks associated with implementation of the asset management plan and any actions that would be proposed in response to those risks. - 7. An explanation of any other key assumptions underlying the plan that have not previously been explained. (2) With respect to an asset management plan prepared under section 5 on or before July 1, 2021, if the additional information required under this section is not included before July 1, 2023, the municipality shall, before including the additional information, update the current levels of service set out under paragraph 1 of subsection 5 (2) and the current performance measures set out under paragraph 2 of subsection 5 (2) based on data from the two most recent calendar years. Update of asset management plans 7. (1) Every municipality shall review and update its asset management plan at least five years after the year in which the plan is completed under section 6 and at least every five years thereafter. (2) The updated asset management plan must comply with the requirements set out under paragraphs 1, 2 and 3 and subparagraphs 5 i and 6 i, ii, iii, iv and v of subsection 5 (2), subsection 5 (3) and paragraphs 1 to 7 of subsection 6 (1). Endorsement and approval required 8. Every asset management plan prepared under section 5 or 6, or updated under section 7, must be, (a) endorsed by the executive lead of the municipality; and (b) approved by a resolution passed by the municipal council. Annual review of asset management planning progress 9. (1) Every municipal council shall conduct an annual review of its asset management progress on or before July 1 in each year, starting the year after the municipality's asset management plan is completed under section 6. (2) The annual review must address, (a) the municipality's progress in implementing its asset management plan; (b) any factors impeding the municipality's ability to implement its asset management plan; and (c) a strategy to address the factors described in clause (b). Public availability 10. Every municipality shall post its current strategic asset management policy and asset management plan on a website that is available to the public, and shall provide a copy of the policy and plan to any person who requests it. TABLE 1 WATER ASSETS Column 1 Service attribute Column 2 Community levels of service (qualitative descriptions) Column 3 Technical levels of service (technical metrics) Scope 1. Description, which may include maps, of the user groups 1. Percentage of properties connected to the or areas of the municipality that are connected to the municipal water system. municipal water system. 2. Percentage of properties where fire flow is 2. Description, which may include maps, of the user groups or areas of the municipality that have fire flow. available. Reliability . Description of boil water advisories and service 1. The number of connection -days per year where a interruptions. boil water advisory notice is in place compared to the total number of properties connected to the municipal water system. 2. The number of connection -days per year due to water main breaks compared to the total number of properties connected to the municipal water system. TABLE 2 WASTEWATER ASSETS Column 1 Column 2 Column 3 371 7 Service attribute Community levels of service (qualitative descriptions) Technical levels of service (technical metrics) Scope Description, which may include maps, of the user groups or Percentage of properties connected to the municipal Quality areas of the municipality that are connected to the municipal wastewater system. wastewater system. Reliability 1. Description of how combined sewers in the municipal 1. The number of events per year where combined wastewater system are designed with overflow structures in sewer flow in the municipal wastewater system place which allow overflow during storm events to prevent exceeds system capacity compared to the total backups into homes. number of properties connected to the municipal 2. Description of the frequency and volume of overflows in wastewater system. combined sewers in the municipal wastewater system that 2. The number of connection -days per year due to occur in habitable areas or beaches. wastewater backups compared to the total number of 3. Description of how stormwater can get into sanitary properties connected to the municipal wastewater sewers in the municipal wastewater system, causing sewage system. to overflow into streets or backup into homes. 3. The number of effluent violations per year due to 4. Description of how sanitary sewers in the municipal wastewater discharge compared to the total number wastewater system are designed to be resilient to avoid of properties connected to the municipal wastewater events described in paragraph 3. system. 5. Description of the effluent that is discharged from sewage treatment plants in the municipal wastewater system. TABLE 3 STORMWATER MANAGEMENT ASSETS Column 1 Service attribute Column 2 Community levels of service (qualitative descriptions) Column 3 Technical levels of service (technical metrics) Scope Description, which may include maps, of the user groups or areas of the municipality that are protected from flooding, including the extent of the protection provided by the municipal stormwater management system. 1. Percentage of properties in municipality resilient to a 100 -year storm. 2. Percentage of the municipal stormwater management system resilient to a 5 -year storm. TABLE 4 ROADS Column 1 ' Service attribute Column 2 Community levels of service (qualitative descriptions) Column 3 Technical levels of service (technical metrics) Scope Description, which may include maps, of the road network in the municipality and its level of connectivity. Number of lane -kilometres of each of arterial roads, collector roads and local roads as a proportion of square kilometres of land area of the municipality. Quality Description or images that illustrate the different levels of road class pavement condition. 1. For paved roads in the municipality, the average pavement condition index value. 2. For unpaved roads in the municipality, the average surface condition (e.g. excellent, good, fair or poor). TABLE 5 BRIDGES AND CULVERTS Column 1 Service attribute Column 2 Community levels of service (qualitative descriptions) Column 3 Technical levels of service (technical metrics) Scope Description of the traffic that is supported by municipal bridges (e.g., heavy transport vehicles, motor vehicles, emergency vehicles, pedestrians, cyclists). Percentage of bridges in the municipality with loading or dimensional restrictions. Quality 1. Description or images of the condition of bridges and how this would affect use of the bridges. 2. Description or images of the condition of culverts and how this would affect use of the culverts. 1. For bridges in the municipality, the average bridge condition index value. 2. For structural culverts in the municipality, the average bridge condition index value. COMMENCEMENT Commencement 11. This Regulation comes into force on the later of January 1, 2018 'and the day it is filed. 372 8 Francais Back to top 373 ATTACHMENT # TOREPORo #I in 1C CITY POLICY Policy Title: Accounting for Tangible Capital Assets Policy Number: FIN 050 Reference: Public Sector Accounting Board PS 3150 Date Originated: January 2010 Date Revised: Approval: Resol 'on #27/ /- Point of Contact: Senior Financial Anaiyst, Corporate Services Com/ • Policy Objective The purpose of this policy is to prescribe the accounting treatm- t for tangible capital assets in accordance with Public Sector Accounting Board (PSAB) PS 3150 in order for the Corporation of the City of Pickering (the "City") to provide financial information about the investment in property, infrastructure, and equipment and the changes in such investment. In addition, this will allow the City to maintain accountability and ensure efficient and effective use of capital assets, as well as make appropriate decisions in planning for capital asset replacement needs. The principle issues in accounting for tangible capital assets are the recognition of the assets, the determination of their carrying costs, amortization charges and the recognition of any related write-downs. Scope This policy applies to all City departments, boards and agencies and other organizations falling within the reporting entity of the City. Index 01 Definitions 02 Categories 03 Opening Balances 04 Capitalization 05 Valuation 374 06 Single Asset, Pooling, Component or Segment Approach 07 Amortization 08 Betterments 09 Assets Under Construction 10 Disposals 11 Write-down for Impairment 12. Responsibilities 13 Procedures 01 Definitions 01.01 Amortization is the accounting process of allocating the cost less the residual value of a tangible capital asset to the fiscal years as an expense over its useful life in a rational and systematic manner appropriate to its nature and use. Amortization expense is an important part of the cost associated with providing local government services, regardless of how the acquisition of tangible capital assets is funded. Depreciation accounting is another commonly used term to describe the amortization of tangible capital assets. 01.02 Assets Under Construction are assets purchased, constructed or developed and not yet in service. Once completed and in service, these assets will be recorded as an asset in their proper category and will be amortized over their useful life. 01.03 Betterments are subsequent expenditures on tangible capital assets that: • . increase previously assessed physical output or service capacity; • lower associated operating costs; • extend the useful life of the asset; or • improve the quality of the output. Policy Title: Accounting for Tangible Capital Assets Page 2 of 15 Policy Number: FIN 050 375 Amounts are capitalized in accordance with the thresholds provided in Section 04. Any other expenditure would be cbnsidered a repair or maintenance and expensed in the period. 01.04 Capital lease is a lease with contractual terms that transfer substantially all the benefits and risks inherent in ownership of the asset to the City. For substantially all of the benefits and risks of ownership to be transferred to the lessee, one or more of the following conditions must be met: a) there is reasonable assurance that the City will obtain ownership of the leased property by the end of the lease term; b) the lease term is of such duration that the City will receive substantially all of the economic benefits expected to be derived from the use of the leased property over its life span; or c) the lessor would be assured of recovering the investment in the Ieased.property and of earning a return on the investment as a result of the lease agreement. Account fora capital lease as acquiring a capital asset and incurring a. liability. Account for a lease as an operating lease when the net present value of the future minimum lease payments or fair value, whichever is less, is less than $10,000. 01.05 Carrying costs are costs directly attributable to an asset's acquisition, construction or development activity where, due to the nature of the asset, preparing the asset for intended use is over an extended period of time. Typical carrying costs could include: • technical and administrative work prior to commencement of and during construction; • overhead charges directly attributable to construction or development; and • interest (see Section 05.04). 01.06 Component is a part of an asset with a cost that is significant in relation to the total cost of that asset. Component accounting recognizes that each part might have a different useful life. This requires separate accounting for each component that has a different useful life than the asset as a whole. Policy Title: Accounting for Tangible Capital Assets Page 3 of 15 Policy Number: FIN 050 376 01.07 Cost is the gross amount of consideration given up to acquire, construct, develop or better a tangible capital asset, and includes all costs directly attributable to acquisition, construction, development or betterment of the tangible capital asset, including installing the asset at the location and in the condition necessary for its intended use. The cost of a contributed tangible capital asset, including a tangible capital asset in lieu of a developer charge, is considered to be equal to its fair value at the date of contribution. Capital grants are not netted against the cost of tangible . capital assets — both purchased and contributed. The cost of a leased tangible capital asset is determined in accordance with Public Sector Guideline PSG -2, Leased Tangible Capital Assets in the PSAB Handbook. 01.08 Deemed disposition is when the asset is assumed or deemed to have been disposed of in the last year of its estimated useful life. At the deemed disposition date, the full cost of the addition and the related accumulated amortization is removed from the accounting records. Deemed disposition is the method used to remove pooled assets from the accounting system. 01.09 Fair value is the amount of consideration that would be agreed upon in an arm's length transaction between knowledgeable, willing parties who are under no compulsion to act. 01.10 Moveable property is property that may be moved from place to place. Examples of moveable property for purposes of tangible capital assets are Vehicles and Machinery & Equipment. 01.11 Net book value of a tangible capital asset is its cost, Tess both accumulated amortization and the amount of any write-downs. 01.12 Pooled Assets are assets that are similar or identical in nature and have a unit value below the capitalization threshold but have a material value as a group — normally recorded as a single asset with one combined value. Although recorded in the financial systems as a single asset, each unit may be recorded in the asset sub -ledger for monitoring and control of its use and maintenance. Examples could include personal computers, furniture and fixtures, small moveable equipment, etc. Policy Title: Accounting -for Tangible Capital Assets Page 4 of 15 Policy Number: FIN 050 • 377 01.13 Replacement cost is the cost to acquire an asset having equivalent service potential to that of the asset being replaced. 01.14 Reproduction cost is the cost of reproducing an asset in substantially identical form and does not take into account changes in technology or construction methods. 01.15 Residual value is the estimated net realizable value of a tangible capital asset at the end of its useful life. 01.16 Service potential is the output or.service capacity of a tangible capital asset, and is normally determined by reference to attributes such as physical output capacity, quality of output, associated operating costs, and useful life. 01.17 Straight-line amortization allocates the cost less estimated residual value of a capital asset equally over each year of its estimated useful life. 01.18 Tangible capital assets are non-financial assets having physical substance that: (i) are held for use in the production or supply of goods and services, for rental to others, for administrative purposes or for the development, construction, maintenance or repair of other tangible capital assets; (ii) have useful economic lives extending beyond a fiscal year; (iii) are to be used on a continuing basis; and (iv) are not for sale in the ordinary course of operations. Tangible capital assets include assets that are donated, contributed, leased (e.g. capital lease) and construction -in -progress. Tangible capital assets do not include such things as: • intangibles (e.g. Goodwill, copyrights, trademarks); • assets acquired by Right, such as purchased computer software; and • heritage assets. 01.19 Threshold is the minimum value which must be met for the capitalization of a tangible capital asset. 01.20 Useful life is theestimate of either the period over which the City expects to use a tangible capital asset, or the service potential of the tangible Policy Title: Accounting for Tangible Capital Assets Page 5 of 15 Policy Number: FIN 050 378 capital asset. The life of a tangible capital asset may extend beyond its useful life. The life of a tangible capital asset, other than land, is finite, and is normally the shortest pf the physical, technological, commercial or legal life. 02 Categories A category of assets is a grouping of assets of similar nature or function in the City's operations. The following list of.categories shall be used: A Land B Buildings C Machinery & Equipment D Vehicles E Infrastructure - Roads F Infrastructure Storm Sewers G .Infrastructure — Sidewalks H Information Technology Hardware Infrastructure — Parks J Library Collection Materials K Furniture & Fixtures L Assets Under Construction 03 Opening Balances Capitalization for opening balances as of December 31, 2007 is set at a threshold of $5,000 for individual assets and pooled assets. No. threshold was used on the opening balances for Land, Buildings and Roads and these categories therefore include 100% of assets identified. Pooled assets in the opening balances include Streetlights, Computer Equipment, Park Infrastructure, Library Materials and Furniture & Fixtures. The majority of Furniture& Fixtures were purchased at the time of facility construction and would be completely depreciated based on their useful life. Therefore, the majority were deemed to have been disposed of and have been excluded from the opening balances. Although PS3150 requires tangible capital assets to be recordedat historical cost, the transitional provisions allow for the fact that historical cost accounting records may not exist for all assets. PS3150 indicates that a government entity should apply'a consistent method of estimating the cost of tangible capital assets for which it does not have historical records; it does not provide guidance on what other measurement bases should be used. Policy Title: Accounting for Tangible Capital Assets Page 6.of 15 Policy Number: FIN 050 379 Where the City did not have historical accounting records, the following methods were used: Current Reproduction/Replacement: Determining current reproduction/replacement cost and deflating it back to the date of the asset's acquisition using an appropriate deflation index. Appraisal: Wherever necessary, the City contracted the services of an accredited appraisal company to provided current market values discounted back to the date of acquisition using an appropriate deflation index. To account for taxes properly, the cost for each asset had the estimated applicable PST and/or GST added to determine the final opening balance. 04 Capitalization Tangible capital assets and any betterments should be capitalized and amortized according to the following thresholds and useful lives: Asset Category Threshold Useful Life — Years* Land Always Capitalize Indefinite Buildings $100,000 15 — 45 Machinery & Equipment $5,000 various Vehicles $15,000 5 —15 Infrastructure — Roads $100,000 . 10 — 50 Infrastructure - Storm Sewers $50,000 25 — 100 Infrastructure - Sidewalks $50,000 20 — 40 Information Technology Hardware $5,000 or pooled — see threshold below • 4 — 8 Infrastructure — Parks $5,000 or pooled — see threshold below 10 — 40 Library Collection Materials Pooled — see threshold below 4 — 7 Furniture & Fixtures $5,000 or pooled — see threshold below various Assets Under Construction Always Capitalize 'n/a Pooled Assets $20,000 n/a Policy Title: Accounting for Tangible Capital Assets Policy Number: FIN 050 380 Page 7 of 15 *Specific useful Fives are provided in separate Tangible Capital Assets City Procedure. 05 Valuation Tangible capital assets should be recorded at cost plus all related charges necessary to place the asset in its intended location and condition for use. These direct costs will be added as part of the original cost of the asset and will be amortized over the useful life of the associated asset. 05.01 Purchased Assets Cost is the gross .amount of consideration paid to acquire the asset. It includes all non-refundable taxes and duties, freight and delivery charges, installation and site preparation costs and other directly related costs. The cost is net of any discounts or rebates. The cost excludes the value of any asset traded in. Cost of land includes purchase price plus legal fees, land registration fees, transfer taxes, survey soil tests and any other directly related costs. Costs would include any costs to make the land suitable for intended use, such as pollution mitigation, demolition and site .improvements that become part of the land. When two or.more assets are acquired for a single purchase price, it is necessary to allocate the purchase price to the various assets acquired. Allocation -should be based on the fair value of each asset at the time of acquisition or some other reasonable basis if fair value is not readily determinable. 05.02 Acquired, Constructed or Developed Assets Cost includes all costs directly attributable (e.g., construction, architectural and other professional fees) to the acquisition, construction or development of the asset. Carrying costs such as internal design, inspection, administrative and other similar costs may be capitalized. Capitalization of general administrative overheads such as rent, utilities, and insurance are not allowed. Capitalization of carrying costs ceases when no construction or development is taking place or when the tangible capital asset is ready for use. 05.03 Donated or Contributed Assets The.cost of donated or contributed assets that meet the criteria for recognition is equal to the fair value at the date of construction or Policy Title: Accounting for Tangible Capital Assets Policy Number: FIN 050 Page 8 of 15 381 contribution. Fair value may be determined using market or appraisal values. Cost may be determined by an estimate of replacement cost. Any related costs should also be. capitalized. 05.04 Capitalization of Interest Costs Borrowing costs incurred when the acquisition, construction or production of an asset takes a substantial period of time to get ready for its intended , use may be capitalized as part of the cost of that asset. Capitalization of interest costs should commence when expenditures are being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use are in progress. Capitalization should be suspended during periods in which active development is interrupted. Capitalization should cease when substantially all (90%) of the activities necessary to, prepare the asset for its intended use are complete. If only minor modifications are outstanding, this indicates that substantially all of the activities are complete. 06 . Single Asset, Pooling, Component or Segment Approach Tangible capital assets may be accounted for using the single asset, pooling, component and/or segment approaches. The approach used will be determined by the usefulness of the information versus the cost of collecting and maintaining information at that level. The approach taken does not have to be consistent across all categories of assets. Different approaches may be taken for each category. 06.01 Single Asset Approach The single asset approach is used when it is not possible to break down the assets into component parts and the value of the asset meets the threshold minimums outlined in Section 04. If a single asset approach is used, the replacement of individual parts will not increase the service potential of the asset as a whole and are recorded as an expense. 06.02 Pooling Approach Assets that are similar or identical in nature and have an individual value below the capitalization threshold but have a material value as a group may be recorded as a single asset with one combined value. Examples of pooled assets are computers and library materials. The capitalization threshold for pooled assets is $20,000. Thus, any grouping of assets must exceed this level to be considered an asset for PS 3150 purposes. Policy Title: Accounting for Tangible Capital Assets . Page 9 of 15 Policy Number: FIN 050 382 06.03 Component Approach Factors to consider when determining whether to use a component approach include: a) major components have significantly different useful lives and consumption patterns in relation to the tangible capital asset as a whole; and b) value of components in relation to the value of the tangible capital asset as a whole. City infrastructure should use the component approach, where appropriate. Major components can be comprised of assets that have similar characteristics and estimated useful lives or consumption rates. 06.04 Segment Approach Linear assets (complex .network systems such as roads, sidewalks and stormwater systems) are usuallydefined inoterms of details such as length, unit of measure and geographic reference (e.g., start and end points). For linear assets, it may be appropriate to break down assets into corresponding segments. For example, when work is performed at a specific point in a linear asset — such as replacing a portion of a roadway — the cost and work involved is attributed to that portion of the asset rather than the entire asset. 06.05 Approach Summary The component and segment approaches can make the accounting and reporting of assets easier. It allows more accurate tracking of an asset by age, type, use and other attributes used in estimating an asset's useful life. It also allows for more accurate tracking of betterments and maintenance. For example, if a segment of sidewalk is replaced, or a component of a building is replaced, the costs of the replacement can be capitalized and amortized over its useful life and the old segment/component written off. Policy Title: Accounting for Tangible Capital Assets Page 10 of 15 Policy Number: FIN 050 383 Asset classes will be evaluated using the following approaches: Asset Class. Approach Components Land Segment . • Buildings • Component All buildings over 5000sq ft: Structure Electrical & Mechanical Roof Cover Interior Finishes Land Improvements - Machinery &.Equipment' Single Asset Vehicles Single Asset . . Infrastructure — Roads Segment/ Component/ Pooled Roads — Base/Surface • Bridges — Deck/Structure IPS and Traffic Signals — Controller/Infrastructure Infrastructure — Storm Sewers Segment Infrastructure — Sidewalks Segment Information Technology Hardware : Single Asset /Pooled Infrastructure - Parks Single Asset '/Pooled • Library Collection Materials Pooled Furniture &. Fixtures Single Asset /Pooled Policy Title: Accounting for Tangible Capital Assets Page 11 of 15 Policy Number: FIN 050 384 07 Amortization The cost, less any residual value, of a tangible capital asset with a limited life should be amortized over its useful life in a rational and systematic manner appropriate to its nature and use: The amortization method and estimate of useful life of the remaining unamortized portion should be reviewed on a regular basis and revised when the appropriateness of a change can be clearly demonstrated. Residual Value will be deemed to be nil for all assets for purposes of amortization. Useful life is normally the shortest of the asset's physical, technological, commercial or legal life. The City uses a straight-line method for calculating the annual amortization. A summary view of the estimated useful lives of assets is included in attached in Section 04. Please note that wherever a category contains many different types of assets with many different useful lives, in which no clear sub -categories stand out, the estimated useful life has been listed as 'various' to reflect the vast pool of assets and their useful lives. City departments, boards and agencies and other organizations are responsible for establishing and utilizing an appropriate estimated useful life for assets acquired. The 'half year rule' will apply to the City. Under the half year rule, six months of amortization is recorded for tangible capital assets acquired during a fiscal year and in the year of disposal. 08 Betterments When valuing the assets, the City must also consider if there have been any betterments since the asset was originally acquired or constructed. Costs of betterments are considered to be part of the cost. of a tangible capital asset and would be added to the cost of the related asset. A betterment is a cost incurred to enhance the service potential of a tangible capital asset. In general, service potential.may be enhanced when there is an increase in the previously assessed physical output or service capacity, where associated operating costs are lowered, where the useful life of the property is extended, or the quality of the output is improved. For example, expenditures incurred to resurface a road which increases the useful life would be accounted for as a betterment. However; asphalt patching which is a temporary fix and does not increase the overall useful life of the road would be accounted for as repairs and maintenance. Policy Title: Accounting for Tangible Capital Assets Page 12 of 15 Policy Number: FIN 050 385 When recording a betterment, the cost of the betterment should not simply be added to the original cost of the asset. In some cases, a partial disposalof the existing asset that was improved occurs. For example, if the exterior of a building is replaced that results in increasing the useful life of the building, the cost of the replaced exterior should be removed from the costof the building and the new exterior should be added to the cost. The accumulated depreciation related to the old exterior should also be removed. Betterments that meet the thresholds in Section 04 will be capitalized by the City. 09 Assets Under Construction Tangible capital assets purchased, constructed or developed by the City are charged to Assets Under Construction until they are put into use. The cost of a constructed asset includes direct construction or development costs (such as materials and labour), and overhead costs directly attributable to - the construction or development activity. Assets under construction also include those assets that have been acquired but require additional work to get the assets ready for use. Capitalization of costs cease when a tangible capital asset is ready for use. Determining when a tangible capital asset, or a portion thereof, is ready for productive use requires consideration of the circumstances in which it is to be operated. Normally it would be predetermined by reference to factors such as productive capacity, occupancy level, or the passage of time. 10 Disposals Disposals of tangible capital assets that are moveable property are the responsibility of the Manager, Supply & Services as per the Purchasing.Policy. Directors should notify the Manager when assets become surplus to operations. When other constructed tangible capital assets are taken out of service, destroyed or replaced due to obsolescence, scrapping or dismantling, the Director must notify Corporate Services of the asset and effective date of disposal. An assetthat has been disposed, of will be removed from the asset inventory. records on disposal or when the asset is permanently withdrawn from.use and no future economic benefit or service potential is expected from the asset. The gain or loss arising from the retirement or disposal of an asset should be recognized. The gain.or loss is determined. as the difference between the actual • or estimated netdisposal proceeds and the net book value of the asset. The Policy Title: Accounting for Tangible Capital Assets Page 13 of 15 Policy Number: : FIN 050 386 resulting gain or loss will be accounted for as revenue or expense in the Statement of Operations. 11 Write-down for Impairment A write-down is required when an asset has become impaired (that is, the value of future economic value of the asset is Tess than the book value). When this occurs, the costs should be reduced to reflect the decline in the asset value. A write-down is used to reflect a partial impairment in the value of the asset. A write-off is used to reflect 100% impairment of the value of an asset. Capital assets are written -off in instances where they are destroyed, stolen, lost or obsolete. The write-off of a tangible capital asset requires the approval of the Director, Corporate Services & Treasurer. Any abandoned or indefinitely postponed projects must be written -down to their net realizable value and charged to the period in which the abandonment or indefinite postponement occurs. When the reduction in the value of the asset can be objectively estimated and it is expected to be permanent, the tangible capital asset must be written -down. An asset write-down cannot be reversed. An asset is never written -up except on initial capitalization or as the result of a betterment. Conditions that may indicate a need to revise remaining estimated useful life and/or write-down of the value of a tangible capital asset include: • A change in manner or extent to which the tangible capital asset is used; • Removal of the tangible capital asset from service for an extended period of time; • Physical damage; • Significant technological developments; • A change in the demand for the services provided through use of the tangible capital asset; and • A change in the law or environment affecting the period of time over which the tangible capital asset can be used. 12 Responsibilities The Treasurer or designate, in conjunction with the Senior Financial Analyst (PSAB) and senior Finance management staff are responsible for the application, implementation and interpretation of this policy. Policy Title: Accounting for Tangible Capital Assets Page 14 of 15 • Policy Number: FIN 050 387 Each Director,Division Head or other staff person shall provide the information and assistance required to maintain a proper asset inventory that in turn meets reporting requirements. 13 Procedures See separate City Procedure for detailed procedures considering Tangible Capital Assets. Policy Title: Accounting for Tangible Capital Assets Page 15 of 15 Policy Number: FIN 050 388 Cdp o�F DICKERING Report to Executive Committee Report Number: FIN 17-18 Date: June 18, 2018 From: Stan Karwowski Director, Finance & Treasurer Subject: Ontario's Main Street Revitalization Initiative — Municipal Funding Agreement Recommendation: 1. That Report FIN 17-18 regarding Ontario's Main Street Revitalization Initiative — Municipal Funding Agreement be received; 2. That the draft By-law attached to this report be enacted; and 3. That the Mayor and Clerk be authorized to execute a Municipal Funding Agreement for the transfer of Main Street Revitalization Initiative funds between the Association of Municipalities of Ontario and The Corporation of the City of Pickering. Executive Summary: In January the Province announced funding of $26 million available for the purposes of supporting main street revitalization initiatives in Ontario. The program funding is provided on an allocated basis across Ontario Municipalities. The funding available to the City of Pickering is $110,773.94. The purpose of this report is to formally approve the agreement between the City and the Association of Municipalities of Ontario (AMO). Staff will propose how the funds being received under this program will be utilized through the 2019 Budget. Financial Implications: The City will receive $110,773.94 and has until March 31, 2020 to spend the funds on an eligible project. Discussion: Ontario's Main Street Revitalization Initiative program is a $26 million fund to help municipal governments undertake main street revitalization activities that support and benefit small businesses. AMO has agreed to administer the funding on behalf of the Ministry of Agriculture, Food and Rural Affairs (OMAFRA). 389 FIN 17-18 June 18, 2018 Subject: Ontario's Main Street Revitalization Initiative - Municipal Page 2 Funding Agreement City staff are proposing that the utilization of the funds be determined through the 2019 budget process. There are two categories of eligible projects: 1. Implementation of priority financial incentives in existing Community Improvement Plans; and 2. Funding of strategic municipal infrastructure such as: • Signage — wayfinding/directional,' and gateway.; • Streetscaping and landscape improvements — lighting, banners, murals, street furniture, interpretive elements, public art, urban forestation, accessibility, telecommunications/broadband equipment, parking, active transportation infrastructure (e.g. bike racks/storage, cycling lanes and paths) and pedestrian walkways/trails; and • Marketing plan implementation — business attraction and promotion activities, special events. The City does not have any Community Improvement Plans in place and therefore, only category 2. above applies. Attachments: 1. By-law Authorizing the Execution of an Agreement with the Association of Municipalities of Ontario (Main Street Revitalization Initiative) 2. Ontario Main Street Revitalization Initiative — Guide to the Municipal Funding Agreement Prepared o y: Paul reamer Senior Accounting Analyst, Internal Audit Approved/Endorsed By: Stan Karwowski Director, Finance & Treasurer Recommended for the consideration of Pickering Ci Council Tony Prevedel, P. Eng. Chief Administrative Officer 390 ATTACHMENT # _TOREPORT # The Corporation of the City of Pickering • By-law No. XXXX/18 Being a By-law to Authorize the Execution of an Agreement with the Association of Municipalities of Ontario (Main Street Revitalization Initiative) Whereas the City of Pickering wishes to enter into an Agreement with the Association of Municipalities of Ontario in order to participate in Ontario's Main Street Revitalization Initiative; Whereas the City of Pickering acknowledges that the funds received through the Agreement must be invested in an interest bearing reserve account until earliest of expenditure or March 31, 2020; Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. That the Mayor and City Clerk are hereby authorized to execute on behalf of The Corporation of the City of Pickering a Municipal Funding Agreement with the Association of Municipalities of Ontario for the transfer of Main Street Revitalization Initiatives funds, in the form attached as Schedule "A" to this By-law. 2. This By-law is to come into effect on the date of its passing. By-law passed this 25th day of June, 2018. David Ryan, Mayor Debbie Shields, City Clerk 391 Associa5on of Municipalities Ontario ATTACHMENT # a.n.TO REPORT # 17 -, MUNICIPAL FUNDING AGREEMENT ONTARIO'S MAIN STREET REVITALIZATION INITIATIVE This Agreement made as of 1st day of April, 2018. BETWEEN: THE ASSOCIATION OF MUNICIPALITIES OF ONTARIO (referred to herein as "AMO") AND: THE [INSERT MUNICIPAL NAME] (a municipal corporation pursuant to the Municipal Act, 2001, referred to herein as the "Recipient") WHEREAS the Province of Ontario is making $26 million available for allocation for the purposes of supporting municipal Main Street Revitalization Initiatives in Ontario; WHEREAS the Province of Ontario, Ontario municipalities as represented by AMO are signatories to Ontario's Main Street Revitalization Initiative Transfer Payment Agreement on March 12, 2018 (the "OMAFRA-AMO Agreement"), whereby AMO agreed to administer Main Street Revitalization funds made available to all Ontario municipalities, excluding Toronto; WHEREAS the OMAFRA-AMO Transfer Payment Agreementcontains a framework for the transfer of provincial funds to Ontario lower -tier and single -tier municipalities represented by AMO; WHEREAS the Recipient wishes to enter into this Agreement in order to participate in Ontario's Main Street Revitalization Initiative; WHEREAS AMO, is carrying out the fund administration in accordance with its obligations set out in the OMAFRA-AMO Agreement and it will accordingly undertake certain activities and require Recipients to undertake activities as set out in this Agreement. THEREFORE the.Parties agree as follows: 1. DEFINITIONS AND INTERPRETATION 1.1 Definitions. When used in this Agreement (including the cover and execution pages and all of the schedules), the following terms shall have the meanings 200 University Ave. Suite 801 Toronto, ON, M5H 3C6 392 www.amo.on.ca amo@amo.on.ca. • Tel 416. 971.9856 Fax 416. 971.6191 Toll Free in Ontario 877.426.6527 ascribed to them below unless the subject matter or context is inconsistent therewith: "Agreement" means this Agreement, including the cover and execution pages and all of the schedules hereto, and all amendments made hereto in accordance with the provisions hereof. "Annual Report" means the duly completed report to be prepared and delivered to AMO as described in Section 7.2 and Section 2 of Schedule D. "Association of Municipalities of Ontario (AMO)" means a legally incorporated entity under the Corporations Act, 1990 R.S.O. 1990, Chapter c.38. "Communication Report" means the duly completed report to be prepared and delivered to AMO as described in Section 7.1 and Section 1 of Schedule D. "Community Improvement Plan" has the meaning as defined under section 28(1) of the Planning Act, R.S.O. 1990, c. P.13. "Contract" means an agreement between the Recipient and a Third Party whereby the latter agrees to supply a product or service to an Eligible Project in return for financial consideration. "Effective Date" is April 1, 2018. "Eligible Costs" means those expenditures described as eligible in Schedule C. "Eligible Projects" means projects as described in Schedule B. "Eligible Recipient" means a a. Municipality or its agent (including its wholly owned corporation); and b. Non -municipal entity, including for profit, non-governmental and not -for profit organizations, on the condition that the Municipality(ies) has (have) indicatedsupport for the Eligible Project through a formal grant agreement between the Municipality and the non -municipal entity. "Event of Default" has the meaning given to it in Section 11.1 of this Agreement. "Funds" mean the Funds made available to the Recipient through the Main Street Revitalization Initiative, a program established by the Government of Ontario. Funds are made available pursuant to this Agreement and includes any interest earned on the said Funds. For greater certainty: (i) Funds transferred to another Municipality in accordance with Section 6.2 of this Agreement, other than as set out in Sections 7.1(a), (c) and (f), are to be treated as Funds by the Municipality to which the Funds are transferred and are not to be treated as Funds by the Recipient; and (ii) any Funds transferred to a non -municipal entity 2 393 in accordance with Section 6.3 of this Agreement shall remain as Funds under this Agreement for all purposes and the Recipient shall continue to be bound by all provisions of this Agreement with respect to such transferred Funds. "Ineligible Costs" means those expenditures described as ineligible in Schedule C. "Lower -tier Municipality" means a Municipality that forms part of an Upper - tier Municipality for municipal purposes, as defined under the Municipal Act, 2001 5.0:2001, c.25. "Municipal Fiscal Year" means the period beginning January 1st of a year and ending December 31st of the same year. "Municipality" and "Municipalities" means every municipality as defined under the Municipal Act, 2001 5.0. 2001 c.25. "Municipal Physical Infrastructure" means municipal or regional, publicly or privately owned, tangible, capital assets primarily for public use or benefit in Ontario. "Ontario" means Her Majesty in Right of Ontario, as represented by the Minister of Agriculture, Food and Rural Affairs. "Parties" means AMO and the Recipient. "Project Completion Date" means the Recipient must complete its Project under this Agreement by March 31, 2020. "Recipient" has the meaning given to it on the first page of this Agreement. "Results Report" means the report prepared and delivered to AMO by the Recipient by which reports on how Funds are supporting progress towards achieving the program objective, more specifically described in Section 3 of Schedule D. "Single -tier Municipality" means a municipality, other than an upper -tier municipality, that does not form part of an upper -tier municipality for municipal purposes as defined under the Municipal Act, 2001, 5.0. 2001 c. 25. "Third Party" means any person or legal entity, other than the Parties to this Agreement who participates in the implementation of an Eligible Project by means of a Contract. "Transfer By-law" means a by-law passed by Council of the Recipient pursuant to Section 6.2 and delivered to AMO in accordance with that section. "Unspent Funds" means the amount reported as unspent by the Recipient as of December 31, as submitted in the Recipient's Annual Report. 394 1.2 Interpretations: Herein, etc. The words "herein", "hereof' and "hereunder" and other words of similar import refer to this Agreement as a whole and not any particular schedule, article, section, paragraph or other subdivision of this Agreement. Currency. Any reference to currency is to Canadian currency and any amount advanced, paid or calculated is to be advanced, paid or calculated in Canadian currency. Statutes. Any reference to a federal or provincial statute is to such statute and to the regulations made pursuant to such statute as such statute and regulations may at any time be amended or modified and in effect and to any statute or regulations that may be passed that have the effect of supplementing or superseding such statute or regulations. Gender, singular, etc. Words importing the masculine gender include the feminine or neuter gender and words in the singular include the plural, and vice versa. 2. TERM OF AGREEMENT 2.1 Term. Subject to any extension or termination of this Agreement or the survival of any of the provisions of this Agreement pursuant to the provisions contained herein, this Agreement shall be in effect from the date set out on the first page of this Agreement, up to and including March 31, 2020. 2.2 Amendment. This Agreement may be amended at any time in writing as agreed to by AMO and the Recipient. 2.3 Notice. Any of the Parties may terminate this Agreement on written notice. 3. RECIPIENT REQUIREMENTS 3.1 Communications. The Recipient will comply with all requirements outlined, including providing upfront project information on an annual basis, or until all Funds are expended for communications purposes in the form described in Section 7.1 and Section 1 of Schedule D. a) Unless otherwise directed by Ontario, the Recipient will acknowledge the support of Ontario for Eligible Projects in the following manner: "The Project is funded [if it is partly funded the Recipient should use "in part"] by the Ontario Ministry of Agriculture, Food and Rural Affairs." b) The Recipient shall notify Ontario within five (5) business days of planned media events or announcements related to the Project, organized by the Recipient to facilitate the attendance of Ontario. Media events and 395 announcements include; but are not limited to, news conferences, public announcements, official events or ceremonies, and news releases. 3.2 Contracts. The Recipient will award and manage all Contracts in accordance with its relevant policies and procedures and, if applicable, in accordance with the Canadian Free Trade Agreement and applicable international trade agreements, and all other applicable laws. a) The Recipient will ensure any of its Contracts for the supply of services or materials to implement its responsibilities under this Agreement will be awarded in a way that is transparent, competitive, consistent with value for money principles and pursuant to its adopted procurement policy. 4. ELIGIBLE PROJECTS 4.1 Eligible Projects. Costs directly and reasonably incurred by the Recipient for construction, renewal, renovation or redevelopment or material enhancement activities funded under existing Community Improvement Plan financial incentive programs or activities funded under the Municipal Physical Infrastructure category, including projects in downtown or main street areas, as defined through an existing Community Improvement Plan or other municipal land use planning policy that will support the role of small businesses in main street areas as more specifically described in Schedule B and Schedule C 4.2 Recipient Fully Responsible: The Recipient is fully responsible for the completion of each Eligible Project in accordance with Schedule B and Schedule C. 5. ELIGIBLE COSTS 5.1 Eligible Costs. Schedule C sets out specific requirements for Eligible and Ineligible Costs. 5.2 Discretion of Ontario. Subject to Section 5.1, the eligibility of any items not listed in Schedule B and/or Schedule C to this Agreement is solely at the discretion of Ontario. 5.3 Unspent Funds. Any Unspent Funds, and any interest earned thereon, will be subject to the terms and conditions of this Agreement. 5.4 Reasonable Access. The Recipient shall allow AMO and Ontario reasonable and timely access to all documentation, records and accounts and those of their respective agents or Third Parties related to the receipt, deposit and use of Funds and Unspent Funds, and any interest earned thereon, and all other relevant information and documentation requested by AMO or Ontario or their respective designated representatives for the purposes of audit, evaluation, and ensuring compliance with this Agreement. 5.5 Retention of Receipts. The Recipient will keep proper and accurate accounts and records of all Eligible Projects including invoices and receipts for Eligible 396 5 Expenditures in accordance with the Recipient's municipal records retention by- law and, upon reasonable notice, make them available to AMO and Ontario. 6. FUNDS 6.1 Allocation of Funds. AMO will allocate and transfer Funds on the basis of the formula determined by Ontario. 6.2 Transfer of Funds to a Municipality. Where a Recipient decides to allocate and transfer Funds to another Municipality (the "Transferee Municipality"): a) The allocation and transfer shall be authorized by by-law (a "Transfer By- law"). The Transfer By-law shall be passed by the Recipient's council and submitted to AMO as soon thereafter as practicable. The Transfer By-law shall identify the Transferee Municipality and the amount of Funds the Transferee Municipality is to receive for the Municipal Fiscal Year specified in the Transfer By-law. b) The Recipient is still required to submit an Annual Report in accordance with Sections 7.1 (a), (c) and (f) hereof with respect to the Funds transferred. c) No transfer of Funds pursuant to this Section 6.2 shall be effected unless and until the Transferee Municipality has either (i) entered into an agreement with AMO on substantially the same terms as this Agreement, or (ii) has executed and delivered to AMO a written undertaking to assume all of the Recipient's obligations under this Agreement with respect to the Funds transferred; in a form satisfactory to AMO. 6.3 Transfer of Funds to a non -municipal entity. Where a Recipient decides to support an Eligible Project undertaken by an Eligible Recipient that is not a Municipality: a) The provision of such support shall be authorized by a grant agreement between the Municipality and the Eligible Recipient in support of a Community Improvement Plan. The grant agreement shall identify the Eligible Recipient, and the amount of Funds the Eligible Recipient is to receive for that Eligible Project. b) The Recipient shall continue to be bound by all of the provisions of this Agreement notwithstanding any such transfer including the submission of an Annual Report in accordance with Section 7.2. c) No transfer of Funds pursuant to this Section 6.3 shall be effected unless and until the non -municipal entity receiving the Funds has executed and delivered to the Municipality the grant agreement. 6.4 Use of Funds. The Recipient acknowledges and agrees the Funds are intended for and shall be used only for Eligible Expenditures in respect of Eligible Projects. 6 397 6.5 Payout of Funds. The Recipient agrees that all Funds will be transferred by AMO to the Recipient upon full execution of this Agreement. 6.6 Use of Funds. The Recipient will deposit the Funds in a dedicated reserve fund or other separate distinct interest bearing account and shall retain the Funds in such reserve fund, or account until the Funds are expended or transferred in accordance with this Agreement. The Recipient shall ensure that: a) any investment of unexpended Funds will be in accordance with Ontario law and the Recipient's investment policy; and, b) any interest earned on Funds will only be applied to Eligible Costs for Eligible Projects, more specifically on the basis set out in Schedule B and Schedule C. 6.7 Funds advanced. Funds transferred by AMO to the Recipient shall be expended by the Recipient in respect of Eligible Costs. AMO reserves the right to declare that Unspent Funds after March 31, 2020 become a debt to Ontario which the Recipient will reimburse forthwith on demand to AMO for transmission to Ontario. 6.8 Expenditure of Funds. The Recipient shall expend all Funds by March 31, 2020. 6.9 GST & HST. The use of Funds is based on the net amount of goods and servicos tax or harmonized sales tax to be paid by the Recipient net of any applicable tax rebates. 6.10 Limit on Ontario's Financial Commitments. The Recipient may use Funds to pay up to one hundred percent (100%) of Eligible Expenditures of an Eligible Project. 6.11 Stacking. If the Recipient is receiving funds under other programs in respect of an Eligible Project to which the Recipient wishes to apply Funds, the maximum contribution limitation set out in any other program agreement made in respect of that Eligible Project shall continue to apply. 6.12 Insufficient funds provided by Ontario. If Ontario does not provide sufficient funds to AMO for this Agreement, AMO may terminate this Agreement. 7. REPORTING REQUIREMENTS 7.1 Communication Report. Immediately upon execution of this Agreement the Recipient shall report to AMO any Eligible Project being undertaken in the current Municipal Fiscal Year in the form described in Schedule D. 7.2 Annual Report. The Recipient shall report in the form in Schedule D due by May 15th following the Municipal Fiscal Year on: 398 7 a) the amounts received from AMO under this Agreement; b) the amounts received from another Eligible Recipient; c) the amounts. transferred to another Eligible Recipient; d) amounts paid by the Recipient in aggregate for Eligible Projects; e) amounts held at year end by the Recipient in aggregate, including interest, to pay for Eligible Projects; f) indicate in a narrative the progress that the Recipient has made in meeting its commitments and contributions; and, g) - a listing of all Eligible Projects that have been funded, indicating the Eligible Project category, project description, amount of Funds, total project cost, start date, end date and completion status. 7.3 Results Report. The Recipient shall account in writing for results achieved by the Funds through a Results Report to be submitted to AMO. Specifically the Results Report shall document performance measures achieved through the investments in Eligible Projects in the form described in Section 3 of Schedule D. 8. RECORDS AND AUDIT 8.1 Accounting Principles. All accounting terms not otherwise defined herein have the meanings assigned to them; all calculations will be made and all financial data to be submitted will be prepared in accordance with generally accepted accounting principles (GAAP) in effect in Ontario. GAAP will include, without limitation, those principles approved or recommended for local governments from time to time by the Public Sector Accounting Board or the Canadian Institute of Chartered Accountants or any successor institute, applied on a consistent basis. 8.2 Separate Records. The Recipient shall maintain separate records and documentation for the Funds and keep all records including invoices, statements, receipts and vouchers in respect of Funds expended on Eligible Projects in accordance with the Recipient's municipal records retention by-law. Upon reasonable notice, the Recipient shall submit all records and documentation relating to the Funds to AMO and Ontario for inspection or audit. 8.3 External Auditor. AMO and/or Ontario may request, upon written notification, an audit of Eligible Project or an Annual Report. AMO shall retain an external auditor to carry out an audit of the material referred to in Sections 5.4 and 5.5 of this Agreement. AMO shall ensure that any auditor who conducts an audit pursuant to this Section of this Agreement or otherwise, provides a copy of the 8 399 audit report to the Recipient and Ontario at the same time that the audit report is given to AMO. 9. INSURANCE AND INDEMNITY 9.1 Insurance. The Recipient shall put in effect and maintain in full force and effect or cause to be put into effect and maintained for the term of this Agreement all the necessary insurance with respect to each Eligible Project, including any Eligible Projects with respect to which the Recipient has transferred Funds pursuant to Section 6 of this Agreement, that would be considered appropriate for a prudent Municipality undertaking Eligible Projects, including, where appropriate and without limitation, property, construction and liability insurance, which insurance coverage shall identify Ontario and AMO as additional insureds for the purposes of the Eligible Projects. 9.2 Certificates of Insurance. Throughout the term of this Agreement, the Recipient shall provide AMO with a valid certificate of insurance that confirms compliance with the requirements of Section 9.1. No Funds shall be expended or transferred pursuant to this Agreement until such certificate has been delivered to AMO. 9.3 AMO not liable. In no event shall Ontario or AMO be liable for: (a) any bodily injury, death or property damages to the Recipient, its employees, agents or consultants or for any claim, demand or action by any Third Party against the Recipient, its employees, agents or consultants, arising out of or in any way related to this Agreement; or (b) any incidental, indirect, special or consequential damages, or any loss of use, revenue or profit to the Recipient, its employees, agents or consultants arising out of any or in any way related to this Agreement. 9.4 Recipient to Compensate Ontario. The Recipient will ensure that it will not, at any time, hold Ontario, its officers, servants, employees or agents responsible for any claims or losses of any kind that the Recipient, Third Parties or any other person or entity may suffer in relation to any matter related to the Funds or an Eligible Project and that the Recipient will, at all times, compensate Ontario, its officers, servants, employees and agents for any claims or losses of any kind that any of them may suffer in relation to any matter related to the Funds or an Eligible Project. The Recipient's obligation to compensate as set out in this section does not apply to the extent to which such claims or losses relate to the negligence of an officer, servant, employee, or agent of Ontario in the performance of his or her duties. 9.5 Recipient to Indemnify AMO. The Recipient hereby agrees to indemnify and hold harmless AMO, its officers, servants, employees or agents (each of which is called an "Indemnitee"), from and against all claims, losses, damages, liabilities and related expenses including the fees, charges and disbursements of any counsel for any Indemnitee incurred by any Indemnitee or asserted against any Indemnitee by whomsoever brought or prosecuted in any manner based upon, 9 400 or occasioned by, any injury to persons, damage to or loss or destruction of property, economic loss or infringement of rights caused by or arising directly or indirectly from: (a) the Funds; (b) the Recipient's Eligible Projects, including the design, construction, operation, maintenance and repair of any part or all of the Eligible Projects; (c) the performance of this Agreement or the breach of any term or condition of this Agreement by the Recipient, its officers, servants, employees and agents, or by a Third Party, its officers, servants, employees, or agents; and (d) any omission or other wilful or negligent act of the Recipient or Third Party and their respective officers, servants, employees or agents. 10. DISPOSAL 10.1 Disposal. The Recipient will not, without Ontario's prior written consent, sell, lease or otherwise dispose of any asset purchased or created with the Funds or for which Funds were provided, the cost of which exceed $50,000 at the time of sale, lease or disposal prior to March 31, 2021. 11. DEFAULT AND TERMINATION 11.1 Event of Default. AMO may declare in writing that an event of default has occurred when the Recipient has not complied with any condition, undertaking or term in this Agreement. AMO will not declare in writing that an event of default has occurred unless it has first consulted with the Recipient. Each and every one of the following events is an "Event of Default": (a) failure by the Recipient to deliver in a timely manner an Annual Report or Results Report. (b) delivery of an Annual Report that discloses non-compliance with any condition, undertaking or material term in this Agreement. (c) failure by the Recipient to co-operate in an external audit undertaken by AMO or its agents. (d) delivery of an external audit report that discloses non-compliance with any condition, undertaking or term in this Agreement. (e) failure by the Recipient to expend Funds in accordance with Sections 4.1 and 6.8. 11.2 Waiver. AMO may withdraw its notice of an Event of Default if the Recipient, within thirty (30) calendar days of receipt of the notice, either corrects the 10 401 default or demonstrates, to the satisfaction of AMO in its sole discretion that it has taken such steps as are necessary to correct the default. 11.3 Remedies on default. If AMO declares that an Event of Default has occurred under Section 11.1, after thirty (30) calendar days from the Recipient's receipt of the notice of an Event of Default, it may immediately terminate this Agreement. 11.4 Repayment of Funds. If AMO declares that an Event of Default has not been cured to its satisfaction, AMO reserves the right to declare that prior payments of Funds become a debt to Ontario which the Recipient will reimburse forthwith on demand to AMO for transmission to Ontario. 12. CONFLICT OF INTEREST 12.1 No conflict of interest. The Recipient will ensure that no current member of the AMO Board of Directors and no current or former public servant or office holder to whom any post -employment, ethics and conflict of interest legislation, guidelines, codes or policies of Ontario applies will derive direct benefit from the Funds, the Unspent Funds, and interest earned thereon, unless the provision of receipt of such benefits is in compliance with such legislation, guidelines, policies or codes. 13. NOTICE 13.1 Notice. Any notice, information or document provided for under this Agreement will be effectively given if in writing and if delivered by hand, or overnight courier, mailed, postage or other charges prepaid, or sent by facsimile or email to the addresses, the facsimile numbers or email addresses set out in Section 13.3. Any notice that is sent by hand or overnight courier service shall be deemed to have been given when received; any notice mailed shall be deemed to have been received on the eighth (8) calendar day following the day on which it was mailed; any notice sent by facsimile shall be deemed to have been given when sent; any notice sent by email shall be deemed to have been received on the sender's receipt of an acknowledgment from the intended recipient (such as by the "return receipt requested" function, as available, return email or other written acknowledgment), provided that in the case of a notice sent by facsimile or email, if it is not given on a business day before 4:30 p.m. Eastern Standard Time, it shall be deemed to have been given at 8:30 a.m. on the next business day for the recipient. 13.2 Representatives. The individuals identified in Section 13.3 of this Agreement, in the first instance, act as AMO's or the Recipient's, as the case may be, representative for the purpose of implementing this Agreement. 13.3 Addresses for Notice. Further to Section 13.1 of this Agreement, notice can be given at the following addresses: a) If to AMO: 402 11 Executive Director Main Streets Agreement Association of Municipalities of Ontario 200 University Avenue, Suite 801 Toronto, ON M5H 3C6 Telephone: 416-971-9856 Email: mainstreets@amo.on.ca b) If to the Recipient: Key Municipal Contact Name Treasurer Municipal Name Mailing Address Town/City, ON POS COD Telephone: Email: 14. MISCELLANEOUS 14.1 Counterpart Signature. This Agreement may be signed in counterpart, and the signed copies will, when attached, constitute an original Agreement. 14.2 Severability. If for any reason a provision of this Agreement that is not a fundamental term is found to be or becomes invalid or unenforceable, in whole or in part, it will be deemed to be severable and will be deleted from this Agreement, but all the other terms and conditions of this Agreement will continue to be valid and enforceable. 14.3 Waiver. AMO may waive any right in this Agreement only in writing, and any tolerance or indulgence demonstrated by AMO will not constitute waiver of rights in this Agreement. Unless a waiver is executed in writing, AMO will be entitled to seek any remedy that it may have under this Agreement or under the. law. 14.4 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario. 14.5 Survival. The Recipient agrees that the following sections and provisions of this Agreement shall extend for seven (7) years beyond the expiration or. termination of this Agreement: Sections 5, 6.7, 6.8, 7, 9.4, 9.5, 11.4 and 14.8. 14.6 AMO, Ontario and Recipient independent. The Recipient will ensure its actions do not establish or will not be deemed to establish a partnership, joint venture, principal -agent relationship or employer-employee relationship in any way or for any purpose whatsoever between Ontario and the Recipient, 12 403 between AMO and the Recipient, between Ontario and a Third Party or between AMO and a Third Party. 14.7 No Authority to Represent. The Recipient will ensure that it does not represent itself, including in any agreement with a Third Party, as'a partner, employee or agent of Ontario or AMO. 14.8 Debts Due to AMO. Any amount owed under this Agreement will constitute a debt due to AMO, which the Recipient will reimburse forthwith, on demand, to AMO. • 14.9 Priority. In the event of a conflict, the part of this Agreement that precedes the signature of the Parties will take precedence over the Schedules. 15. SCHEDULES 15.1 This Agreement, including: Schedule A Municipal Allocation Schedule B Eligible Projects Schedule C Eligible and Ineligible Costs Schedule D Reporting constitute the entire agreement between the Parties with respect to the subject matter contained in this Agreement and supersedes all prior oral or written representations and agreements.. 13 404 16. SIGNATURES IN WITNESS WHEREOF, AMO and the Recipient have respectively executed, sealed and delivered this Agreement on the date set out on the front page. RECIPIENT'S NAME: [INSERT MUNICIPAL NAME] Name: Title: Name: Title: THE ASSOCIATION OF MUNICIPALITIES OF ONTARIO By: Title: In the presence of: Date Date Date Witness: Date • 14 405 SCHEDULE A MUNICPAL ALLOCATION RECIPIENT'S NAME: [insert municipal name] ALLOCATION: [insert dollar figure] The Recipient acknowledges this is a one time payment for Eligible Projects with Eligible Costs. 15 406 SCHEDULE B ELIGIBLE PROJECTS Funding is to be directed to Eligible Projects to support, revitalization activities within main street areas, as defined through an existing Community Improvement Plan or any other municipal land use planning policy. Funding can be used in one or both of the following categories: 1. Community Improvement Plan - construction, renewal, renovation or redevelopment or material enhancement activities that implement priority financial incentives in existing Community Improvement Plans such as: a. Commercial building facade improvements b. Preservation and adaptive reuse of heritage and industrial buildings c. Provision of affordable housing d. Space conversion for residential and commercial uses e. Structural improvements to buildings (e.g. Building Code upgrades) f. Improvement. of community energy efficiency g. Accessibility enhancements 2. Other Municipal Land Use Planning Policy - construction, renewal or material enhancement activities to fund strategic Municipal Physical Infrastructure and promotional projects such as: a. Signage - wayfinding/directional, and gateway. b. Streetscaping and landscape improvements - lighting, banners, murals, street furniture, interpretive elements, public art, urban forestation, accessibility, telecommunications/broadband equipment, parking, active transportation infrastructure (e.g. bike racks/storage, cycling lanes and paths) and pedestrian walkways/trails. c. Marketing plan implementation - business attraction and promotion activities, special events. 16 407 SCHEDULE C ELIGIBLE AND INELIGIBLE COSTS 1. Eligible Costs include: a. Costs directly and reasonably incurred on or after April 1, 2018 up to and including the Project Completion Date by the Recipient for construction, renewal, renovation or redevelopment or material enhancement activities funded under existing Community Improvement Plan financial incentive programs. b. Costs directly and reasonably incurred on or after April 1, 2018 up to and including the Project Completion Date by the Recipient for construction, renewal or material enhancement activities funded under the. Municipal Physical Infrastructure category including projects in downtown or main street areas, as defined through an existing Community Improvement Plan or other municipal land use planning policy that will support the success of small businesses in main street areas. 2. Ineligible Costs include: a. Costs incurred prior to Effective Date or after the Project Completion Date; b. Any costs associated with providing the Annual and Results Reports to AMO; c. Any costs associated with lobbying Ontario, including other Ministries, agencies and organizations of the Government of Ontario; d. Costs associated with construction, renewal, renovation or redevelopment or material enhancement of all things in the following categories: highways, short -sea shipping, short -line rail, regional or local airports, and brownfield redevelopment; e. Costs of infrastructure construction, renewal, renovation or redevelopment or material enhancement that do not improve energy efficiency, accessibility, aesthetics of marketability of small businesses within an Recipient's main street areas; or that do not encourage strategic public investments in municipal and other public infrastructure within main street areas that will benefit small businesses; or that otherwise will likely fail to contribute to the success of main street businesses; f. Costs of infrastructure construction, renewal, renovation or redevelopment or material enhancement outside of the Recipient's main street areas, as defined through an existing Community Improvement Plan or other municipal land use planning policy; The cost of leasing of equipment by the Recipient, any overhead costs, including salaries and other employment benefits of any employees of the Recipient, its direct or indirect operating or administrative costs of Recipients, and more specifically its costs related to planning, engineering, architecture, supervision, management and other g. 408 17 activities normally carried out by its staff, except in accordance with Eligible Costs above; h. Taxes, to which the Recipient is eligible for a tax rebate; i. Purchase of land or any interest therein, and related costs; and, Routine repair and maintenance Municipal Physical Infrastructure. 18 409 SCHEDULE D REPORTING 1. Communication Report Immediately following the Municipality executing this Agreement the Recipient will provide AMO a Communication Report in an electronic format deemed acceptable to AMO, consisting of the following: Project Title Project Description Eligible Project Category (CIP/ Municipal Physical Infrastructure Total Project Cost Estimate of Funds (Main Street) Spent ($xxx) 2. Annual Report The Recipient will provide to AMO an Annual Report in an electronic format deemed acceptable to AMO, consisting of the following: a. Financial Reporting Table: The financial report table will be submitted in accordance with the following template: Annual Report Financial Table Opening Balance Received from AMO Annual Cumulative 20xx 2018 - 2020 Interest Earned Received from An Eligible Recipient Transferred to an Eligible Recipient ($xxx) ($xxx) Spent on Eligible Projects (for each Eligible Project category) ($xxx) ($xxx) Closing Balance of Unspent Funds 410 19 b. Project List: The Recipient will provide to AMO a project list submitted in accordance with the following template: Recipient Project Title Project Description Eligible Project Category Total Project Cost Main Street Funds Used Start & End Date Completed? • Yes/No/ Ongoing 3. Project Results. The Results Report shall outline, in a manner to be provided by AMO, the degree to which investments in each project are supporting progress towards achieving revitalization within main street areas: a. Community Improvement Plan Eligible Projects • Number of small businesses supported; • Total value of physical improvements; • Total Main Street Funds provided; • Total Municipal investment; and, • Total private investment. b. Municipal Physical Infrastructure Eligible Projects • Total value of physical improvements; • Total Main Street Funds provided; and • Total municipal investment. 20 411 ATTACHMENT # • Z TO REPORT #L!�' I /- GUIDE TO THE MUNICIPAL FUNDING AGREEMENT CONTACT: mainstreets@amo.on.ca 200 University Avenue, Suite 801 Toronto, ON., M5H 3C6 P. 41.6.971.9856 41 z MARCH 2018 N FARLE OF CON'I 03_Municipal Chec=list 04_Introduction 04_FAQ 06_ New information added - May 2018 12_ Appendices 413 MUNICTPAIJ CI IFCKLIST Immediate Action Where is More Info When Pass Municipal By -Law Authorizing MFA E -sign MFA and electronically submit to AMO E-mail (mainstreets@amo.on.ca) the Authorizing By-law to AMO See Appendix A for a sample As soon as possible See page 9 for more information 2018 Project notification for See page 10 for details on communications purposes to what is required AMO As soon as possible As soon as possible Longer Term Action Where is More Info When Annual and Results Report See page 10 for details on what is required 414 By May 15th of every year (until funds are spent) INTRODUCTION The Main Street Revitalization Initiative is a $26 million fund to help municipal governments undertake main street revitalization activities that support and benefit small businesses. AMO has agreed to administer the funding on behalf of the Ministry of Agriculture, Food and Rural Affairs (OMAFRA). AMO signed the Agreement with OMAFRA on March 12, 2018. The Agreement's effective date is April 1, 2018. All lower and single tier municipal governments are eligible for the allocation based funding. The formula for the funding was established by OMAFRA without the need for an application or matching funding. It empowers municipalities to make investment decisions within the program's parameters. What is eligible? As of April 1, 2018, municipal governments can invest in revitalization activities that will support small businesses through activities undertaken to revitalize main streets. The work can be identified as priority through an. existing Community Improvement Plan or municipal physical infrastructure priorities identified through other municipal land use planning document for the municipality's main street that involves the construction, renewal, renovation or redevelopment, or material enhancement in each of the following categories: Implementation of priority financial incentives in existing Community Improvement Plans such as: a. Commercial building facade improvements; b. Preservation and adaptive reuse of heritage and industrial buildings; c. Provision of affordable housing; d. Space conversion for residential and commercial uses; e. Structural improvements to buildings (e.g. Building Code upgrades); f. Improvement of community energy efficiency; and g. Accessibility enhancements. Funding of strategic municipal physical infrastructure such as: a. Signage- wayfinding/directional, and gateway; b. Streetscaping and landscape improvements - lighting, banners, murals, street furniture, interpretive elements, public art, urban forestation, accessibility, telecommunications/broadband equipment, parking, active transportation infrastructure (e.g. bike racks/storage, cycling lanes and paths) and pedestrian walkways/trails; and c. Marketing plan implementation - business attraction and promotion activities, special events. Municipalities can identify projects in one or both categories. 415 0 What ty. Des of costs are eligi ale? Eligible Costs • Costs directly and reasonably incurred on or after April 1, 2018 up to and including March 31, 2020 for construction, renewal, or material enhancement activities funded under existing Community Improvement Plan financial incentive programs; and/or, Costs directly and reasonably incurred on or after April 1, 2018 up to and including March 31, 2020 for construction, renewal or material enhancement activities funded under the Municipal Physical Infrastructure category, including projects in downtown or main street areas, as defined through an existing Community Improvement Plan or other municipal land use planning policy that will support the success of small businesses in main street areas. Ineligible Costs • Costs incurred prior to April 1, 2018 or after March 31, 2020; • Any costs associated with providing any Reports to AMO; • Any costs associated with lobbying Ontario, including other Ministries, agencies and organizations of the Government of Ontario; • Costs for infrastructure works in the following categories: highways, short -sea shipping, short -line rail, regional or local airports, and brownfield redevelopment; • Costs of infrastructure works that does not improve energy efficiency, accessibility, aesthetics of marketability of small business within a main street area; • Costs of infrastructure works outside of main street areas, as defined through an existing Community Improvement Plan or other municipal land use planning policy; • The cost of leasing of equipment, any overhead costs, including salaries and other employment benefits of any employees, its direct or indirect operating or administrative costs, and more specifically its costs related to planning, engineering, architecture, supervision, management and other activities normally carried out by its staff, except in accordance with eligible costs above; • Taxes, to which the municipality is eligible for a tax rebate; • Purchase of land or any interest therein, and related costs; and, • Routine repair and maintenance costs. Woulc_ the c_eveeloDment of a Co Im_Drovement Plan be eligible? Tnmunity No. The program is focused on implementation of existing Community Improvement Plans or priorities through other existing municipal land use planning policies. Municipalities that do not have a Community Improvement Plan can implement eligible priority projects through the official plan, economic development strategy, downtown revitalization plan or another related plan in support of the municipal main street. 416 Further inter oretation of eligibility A number of small municipalities have asked for additional discussion on project eligibility and some examples of projects that might be eligible in the absence of a Community Improvement Plan (CIP), a discernible "main street" area or in the case of very limited commercial activity in the community. Main Street projects must be consistent with the requirements set out in the transfer payment agreement (TPA). The following discussion is intended to reflect a broader interpretation of the rules to assist municipal staff and councils in the deliberations in selecting appropriate projects that comply with the TPA. Ultimately, the purpose of the program is to support revitalization, economic activity and enterprises in the municipality. All Main Street projects should support this purpose. While there is room for interpretation consistent with the program objectives, municipal staff and Councils should take note of the TPA provisions excluding certain types of costs (i.e., projects and expenditures) which are categorically ineligible. Here are some ideas that may be helpful. In municipalities where there is no defined main street (or your main street is a provincial highway), the funding should be used within any built-up area, defined through municipal planning policy (e.g., hamlets, villages). Main Street funding cannot be used to create a Community Improvement Plan (CIP). However, a municipality can create a CIP using other resources and then use Main Street funding to implement financial incentives under the new CIP (by March 31, 2020). The Main Street funding cannot be used to create a strategic marketing plan. However, the funding can be used for activities related to implementing part of a strategic marketing plan. For example: some costs for a one-time festival in the municipality that is intended to attract visitors or to otherwise generate economic activity could be eligible. Alternately, tangible capital assets purchased (e.g., lights, staging, fencing, signage, banners) to support an annual gathering or festival in accordance with a strategic marketing plan or similar approved plan could be eligible. Any marketing or promotional activity as part of a strategic marketing plan could be eligible. Under the category of Municipal Physical Infrastructure, there is considerable scope for creative project ideas. Here are some project ideas that might be considered: • The development of a centrally located space that can be used for rotating commercial activity, such as a farmers' market, seasonal craft market, flea market, or pop-up retail, etc. • Equipping a key location (e.g., dockside, parking lot, picnic area, trail head) with electricity, lighting, etc., to support visiting food truck, commercial stalls, etc. • Beautification, landscaping, tree planting or murals etc., within the planned, built-up area of the community with no defined "Main Street". • Improvements to public spaces and buildings (exclusive of routine repair and maintenance) that enhance the aesthetic appeal of the community, including public spaces associated with municipal buildings, community centres, church properties, historic cemetery etc. 417 • Renewal or restoration of an historic or heritage site, monument or public space owned .by the municipality. Wayfinding signage throughout the municipality that highlights locations of interest e.g., historic sites, farm stands, boat lunches etc. Accessibility or other improvements to a playground, community centre or other places where people gather. Creating a gateway to the community including features such as signage, lighting, benches, local information, etc. P. s Creating facilities (or events) that make your community a destination for cyclists, hikers, snowmobilers, boaters, rowers, skaters, skateboarders, artists, hobbyists, crafts b people, etc. In the case of all of the above examples, the purpose of the expenditure of Main Street funding should be to create an environment that will benefit small business activity in the community or support the attraction of economic activity (e.g., tourism). When c oes the money have to be s -pent? Municipalities have to March 31, 2020 to spend the funds on an eligible project. During this time, municipalities must earn interest on the Funds so that they have more for the project later. What about the munici_?al share of a _?roject that will receive funding from another revenue source or _3rogram? Municipalities can fund 100% of total project costs with Main Street dollars. If another program has restrictions on the use of funds, they must be adhered to. If you are using multiple sources of funding, the project also has to be eligible under the terms and conditions of these multiple programs. What if our munici_?ality wants to ?artner on a 3roject? The Main Street Agreement encourages collaboration, building of partnerships and strategic alliances when working on eligible projects. If a municipality is transferring funds to another municipality, it must be done via by-law. The 418 municipality transferring funds is responsible for reporting on the transfer in annual reporting. The municipality receiving Main Street Funds is responsible for reporting that the Funds were received and is responsible for all other reporting requirements, including project details and spending.' If a'municipality is transferring funds to a non -municipal entity, such as a for-profit company, council will have to endorse the project through a grant agreement. Under this situation, municipalities are still responsible for meeting all the requirements of the Agreement related to the use of the transferred Main Street Funds, including all reporting. What is the allocation formula? Municipal Allocation Base Funding Small - Community Adjustment + Per Capita • Allocation Base Funding is the amount distributed equally among all eligible municipalities Small Community Adjustment is the amount distributed equally among municipalities with a population less than 25,000 Per Capita Allocation is a per capita amount based on 2016 population, as outlined in the 2016 Census of Population Total funding, less administrative costs, is allocated as follows across the three components: Base Funding: 50% of total funding; Small Community Adjustment: 11.5% of total funding; Per Capita Component: 38.5% of total funding. Once a municipal government has fully executed an Agreement with AMO and provide the appropriate information for the transfer of the funds, the one time allocation will be paid out. Iow much of the func ac xtinistration? ing sA O using for AMO will need just 6% of the $26 million to deliver this program to all eligible municipalities and report in aggregate to OMAFRA as required by the Agreement. 419 0 What re_3orting is recuirec_ of munici_aalities? Building on the success of the risk management framework established under the federal Gas Tax Agreement, municipalities only need to report initial upfront anticipated projects for 2018 and then once annually on projects until all the funds are spent. Reminc me how the auc it framewor wor <s? Municipalities will not have to complete audits. Instead the program will use a risk_ based approach that recognizes municipalities as a mature and accountable order of government. In this approach, the municipal contact for the Main Street Municipal Funding Agreement will be the Treasurer, no exceptions. In addition, AMO will audit approximately 10% of municipalities annually to provide assurance to Ontario on municipal compliance. Is there an agreement municiaalities have to sign? Yes. AMO is using the a digital platform provided by its partner, Solutions Notarius Inc., to sign the Municipal Funding Agreement (MFA). A municipality must electronically sign (e -sign) the MFA with AMO to receive funding. Please have the appropriate signing officers e -sign the MFA. The municipal by-law authorizing the municipality to enter into the agreement can be emailed to AMO at mainstreets@amo.on.ca. See Appendix A for a sample by-law. Appendix B includes a cross-reference between the MFA with the OMAFRA-AMO Agreement. What is e -signing? An e -signature is a signature that can be applied in a document by a signer electronically. AMO uses Notarius' Consigno Cloud software to sign documents electronically. The municipal signing officer will receive a signature request to the MFA by email from AMO. They will be asked to open a link to a signing session in that email. The Consigno Cloud software certifies a signer's identity with two -factor authentication. The signing officer will be asked to provide a second authentication credential (e.g. an answer to a security question, like an online money transfer) before they can access the document. Once they are able to access the document, they will be asked to fill-in specific fields prior to finally signing off on the MFA. AMO will then be notified that the document has been signed and staff will review to ensure the document is complete before AMO e -signs the MFA. A final, signed copy of the MFA will then be provided to the municipality and to AMO electronically for record keeping. 420 'o Signing officers to the MFA are not required to subscribe or install any software on their computer to sign the document. Documents can be signed on a mobile device or on a desktop computer. For further details on the e -signing requirement, please refer to the process document. What else is rec uirec _ of municipalities? There are a number of requirements both now and over the life of the Agreement. As soon as possible, notification to AMO of the types of projects council wishes to undertake in 2018 is required. As well there is annual reporting and results reporting similar to what municipalities already do under the federal Gas Tax Agreement through AMO's website. These reports will be due to AMO by May 15, 2019 and every year thereafter until the funds are spent. What is results reporting? The results report will demonstrate how the funding has been invested in a community to support revitalization within main street areas: Community Improvement Plan Eligible Projects • Number of small businesses supported; • Total value of physical improvements; • Total Main Street Funds provided; • Total Municipal investment; and, • Total private investment. Municipal Physical Infrastructure Eligible Projects • Total value of physical improvements; • Total Main Street Funds provided; and • Total municipal investment. More details are in Schedule D of the MFA. 421 Are there communication rec uirements? Yes. Municipal governments will be expected to acknowledge funding of projects by the Province by inviting the Province to participate in media events or announcements related to projects funded under the Main Street Revitalization Initiative. More details are in Section 3 of the MFA. Can we sell the asset? Assets purchased or constructed using Main Street funds must be for public use and benefit. If a municipality wishes to dispose of assets prior to March 31, 2021 and it is valued at more than $50,000 at the time of disposal the written consent of the province is required. 422 APPENDIX A • Sample Municipal N y -Law WHEREAS the Municipality wishes to enter into an Agreement in order to participate in Ontario's Main Streets Revitalization Initiative; AND WHEREAS the Municipality acknowledges that Funds received through the Agreement must be invested in an interest bearing reserve account until the earliest of expenditure or March 31, 2020; Now THEREFORE, the Council of the [MUNICIPAL NAME], a municipal corporation pursuant to the Municipal Act, 2001; ENACTS AS FOLLOWS That the Mayor/Reeve/Regional Chair/Warden and [SIGNING AUTHORITY, i.e. Clerk] are hereby authorized to execute this Municipal Funding Agreement for the transfer of Main Streets Revitalization Initiatives funds between the Association of Municipalities of Ontario and [MUNICIPAL NAME] as in Schedule A attached hereto. Schedule A shall form part of this by-law. 423 APPF;NDIX B 0 Cross -Reference Table Between MFA and OMAFRA-AMO Agreement Munici_ral Funding Agreement OMAFiA-AMO Agreement (MFA) Provision Provision Section 1- Definitions and Interpretation Schedule A Article 1 Section 1.1 Definitions • Schedule A Article A1.2 Section 1.2 Interpretation Schedule A Article A1.1 Section 2 - Term of Agreement Schedule A Article A3 Section 2.1 Term Schedule A Article A3.1 Section 2.2 Amendment Section 3.1 Section 2.3 Notice Schedule A Article Al2 Section 3 - Recipient Requirements Schedule A Article A5, A8 Section 3.1 Communications Schedule B Article B1.7 Section 3.2 Contracts Schedule A Article A5.2 Section 4 - Eligible Projects Schedule D Article D2.1 Section 4.1 Eligible Projects Schedule D Article D2.1 5 and 6 Section 4.2 Recipient Fully Responsible Schedule A Article A4.4 Section 5 - Eligible Costs Schedule D Article D3.1 Section 5.1 Eligible Costs Schedule D Article D3.1 Section 5.2 Discretion of Ontario Schedule D Article D2.1 Section 5.3 Unspent Funds Schedule A Article A15 Section 5.4 Reasonable Access Schedule A Article A7 Section 5.5 Retention Receipts Schedule A Article A7 Section 6 - Funds Schedule C Activity 1 Section 6.1 Allocation of Funds Schedule C Activity 1 Section 6.2 Transfer of Funds to a Municipality AMO Provision Section 6.3 Transfer of Funds to a non -municipal entity AMO Provision Section 6.4 .Use of Funds Schedule D Article D2.1 Section 6.5 Payout of Funds AMO Provision Section 6.6 Use of Funds. Schedule A Article A4.6 Section 6.7 Funds Advanced Schedule' A Article A17 Section 6.8 Expenditure of Funds Schedule B Article B1.2 Section 6.9 GST & HST Schedule A Article A4.10 Section 6.10 Limit of Ontario's Financial Commitments Schedule A Article A4.2 Section 6.11 Stacking AMO Provision Section 6.12 Insufficient funds provided by Ontario AMO Provision Section 7 - Reporting Requirements Schedule F 424 Section 7.1 Communication Report Schedule F Section 7.2 Annual Report Schedule F Section•7.3 Results Report Schedule F Section 8 Records Audit Schedule A Article A7 - and Section 8.1 Accounting Principles Schedule A Article A1.1, A7.2 Section 8.2 Separate Records Schedule A Article A7.2 Section 8.3 External Auditor Schedule A Article A7.3 Section 9 - Insurance and Indemnity Schedule A Article All Section 9.1 Insurance Schedule A Article All Section 9.2 Certificates of Insurance Schedule A Article A11.2 Section 9.3 AMO not liable AMO Provision Section 9.4 Recipient to Compensate Ontario Schedule A Article All Section 9.5 Recipient to Indemnify AMO AMO Provision Section 10 - Disposal Schedule A Article A5.3 Section 10.1 Disposal Schedule A Article A5.3 and Schedule B Article B1.5 Section 11- Default and Termination Schedule A Article A14 Section 11.1 Event of Default Schedule A Article A14.1 Section 11.2 Waiver AMO Provision Section 11.3 Remedies of Default Schedule A Article A14.3 Section 11.4 Repayment of Funds Schedule A Article A14.2 Section 12 - Conflict of Interest Schedule A Article A6 Section 12.1 No conflict of interest Schedule A Article A6.2 Section 13 - Notice Standard Provision Section 13.1 Notice Standard Provision Section 13.2 Representatives Standard Provision Section 13.3 Addresses for Notice Standard Provision Section 14 - Miscellaneous Various sections listed in detail below Section 14.1 Counterpart Signature Section 2.1 Section 14.2 Severability Schedule A Article A20 Section 14.3 Waiver Schedule A Article A21 Section 14.4 Governing Law Schedule A Article A24 Section 14.5 Survival Schedule A Article A30 Section 14.6 AMO, Ontario and Recipient independent Schedule A Article A22 Section 14.7 No Authority to Represent AMO Provision Section 14.8 Debts Due to AMO Schedule A Article A15, A17.2 Section 14.9 Priority Schedule A Article A1.3 Section 15 - Schedules Standard Provision, Section 16 - Signatures Standard Provision Schedule A - Municipal Allocation Schedule C Activity 1 Schedule B - Eligible Projects Schedule D Article D2.1 5 and 6 Schedule C - Eligible and Ineligible Costs Schedule D Article D3.1 Schedule D - Reporting Schedule F 425 • • 11. Ali, , tl, i,lll, ii IV i' jl. "1 JI` Ifih ii 1 ii ..,,l +' , Dili tir'' Ontario 426 �1Assochatm of ij fs'.-1[111111i. C4 DICKERING Report to Executive Committee Report Number: CAO 06-18 Date: June 18, 2018 From: Tony Prevedel Chief Administrative Officer Subject: Economic Development_Study Partnership Opportunity with Canadian Urban Institute - A Strategic Road Map File: A-1440-001 Recommendation: 1. That Report CAO 06-18 detailing the City's interest in entering into a partnership agreement for an Economic Development Impact Study for the Highway 407 Corridor with the Canadian Urban Institute (CUI)be received; 2. That the City's cost of participating in the partnership agreement of $45,000 be funded by a transfer of $30,000 from the Seaton Application Fee Reserve and $15,000 be charged to the consulting account (2121.2392.0000) and this amount is being entirely funded from the Invest Canada — Community Initiatives Government Grant; 3. That staff coordinate the community engagement aspects of this study with the ongoing Community Engagement study previously approved by Council (CAO 03-18); 4. That staff be directed to send a copy of this Report to the Canadian Urban Institute, Transport Canada, Greater Toronto Airports Authority, Toronto Global, the Region of Durham, Via Rail and Metrolinx; and 5. That staff report back to Council upon completion of this study. Executive Summary: For the past few months, the City of Pickering has been in discussions with the Canadian Urban Institute (CUI) with respect to undertaking an economic development study for the Highway 407 Corridor lands. CUI has secured other private sector funding to undertake this study and will be leading and managing this study with the assistance of Dr. John Kasarda and City staff. The Canadian Urban Institute is a non-profit applied research organization, started in 1990, dedicated to achieving healthy urban development. CUI is a recognized leader in delivering impartial, evidence -based research to enable municipalities and agencies in Ontario, Canada and internationally to create stronger, healthier communities. It is anticipated that this study will take approximately 4 months to complete. 427 CAO 06-18 June 18, 2018 Subject: Economic Development Study Partnership Opportunity Page 2 with Canadian Urban Institute As part of this study, CUI will examine the Aerotropolis model for these lands. The Aerotropolis. model was developed by a world renowned consultant from the University of North Carolina, Dr. John Kasarda. Aerotropolis is the concept of a City or sub -region in which infrastructure, land use and economy are centered on transportation systems (wealth of connections), including an airport that is surrounded by manufacturers, food producers, business services and other local suppliers. It is critical for the City to move forward with the development of a strategic road map for the Highway 407 Corridor, as it is the last economic opportunity for the City to attract businesses and well -paying jobs. With limited developable employment lands and low vacancy rates for industrial buildings in Pickering's existing business parks, it is anticipated that the Aerotropolis strategic road map will greatly assist the City's Economic Development Office in attracting multinational firms and jobs to the Highway 407 corridor. Financial Implications: The City's $45,000 cost is being funded from 2 non -property tax sources: Seaton Application Fees revenue ($30,000) and ($15,000) from the Invest Canada — Community Initiatives grant. The ICCI Program provides financial support to communities for their foreign direct investment initiatives and activities. By applying this financing strategy, there is no cost to the Pickering taxpayer for participating in this study. Background: In November 2016, Council approved the Official Plan Review: The Environment and Countryside report recommended that the Federal Government expedite the process to enable a decision regarding the proposed airport in Pickering. It was noted within the report that OPA 27 contained policy revisions that were consistent, as this is the last major opportunity for the City to attract businesses and jobs. It was important to ensure greater certainty of the future Pickering Lands site, as it is set to act as a catalyst for economic growth and job creation. In October of 2017, Council supported the motion of the development of an airport in Pickering, subject to the results of the Aviation Sector Study. This recommendation was a part of the Amazon HQ2 bid which focused on attracting multinational firms like Amazon to the Highway 407 Corridor. Within the same report, Council also requested VIA Rail Canada and Metrolinx to move forward with identifying, planning and implementing high frequency rail service on the CN Havelock rail corridor. Earlier this year, Council approved the hiring of Proof Inc. to undertake the community engagement exercise on the Economic Impact & Employment — 407 Corridor. Council recognized the importance of communicating to the residents and businesses of Pickering and abroad the economic potential of the Corridor. Discussion: The Highway 407 Corridor stretches between Sideline 16 to the east, Green River to the west, Uxbridge -Pickering Townline to the north and to the south side of Highway 407. The Corridor includes the lands within the Pickering Innovation Corridor and the Federal Pickering Lands site, which make up approximately 9,400 acres. The uniqueness of this Corridor is unlike any other, including a 400 series highway, access to over 800 acres of employment lands, and an additional 8,700 acres of `economic development' lands that include 428 CAO 06-18 June 18, 2018 Subject: Economic Development Study Partnership Opportunity Page 3 with Canadian Urban Institute uses for employment and a potential airport. For the City of Pickering, this Corridor is the last major economic opportunity to attract businesses and jobs. With very limited inventory of developable employment lands remaining in Pickering's existing business parks, the Highway 407. Corridor is not only the last major economic opportunity for the City, but it has the greatest potential to positively impact Pickering and the surrounding municipalities. As reported earlier this year, staff are actively pursuing the relocation of up to 5 multinational companies to the Innovation Corridor, which could result in the creation of up to 3,000 jobs. Such projects will generate additional taxation revenues for the City and the Region. Through discussions with representatives of the businesses interested in relocating to the Innovation Corridor, City staff have been questioned on the timing of when a decision will be made on the construction of the airport in Pickering. Businesses interested in relocating and/or expanding to the Innovation Corridor have stated that a decision by the Federal Government to move forward with an airport in Pickering would significantly expedite its decision making process, and would make the Pickering Innovation Corridor an ideal location for their respective businesses. The lack of an economic strategic plan for the Highway 407 Corridor will impact the future ability for Pickering to attract well -paying jobs and businesses, and reduce the impact on the residential tax base. Since April 2018, the City has been in active discussion with the Canadian Urban Institute (CUI) regarding the economic potential of the Highway 407 Corridor. The CUI applies knowledge developed over 3 decades of experience in Canada and internationally to visualize data and organize information to understand relationships, generate insights and recommendations to inspire action. CUI staff recognize the unique opportunity and challenges to develop the Highway 407 Corridor for the maximum benefit of the Pickering residents and neighbor municipalities located in Durham and York Region. Through various discussions and research, a general conclusion was reached to explore the application of the Aerotropolis model to the Highway 407 Corridor. Aerotropolis can be defined as a metropolitan sub region in which infrastructure, land use and economy are centered on transportation systems including an airport that connects the supply chain, manufacturing, food producers and business services to their customers. The model was created by Dr. John Kasarda, a former professor at the University of North Carolina and the current Chief Executive Officer of Aerotropolis Business Concepts. 429 CAO 06-18 June 18, 2018 Subject: Economic Development Study Partnership Opportunity Page 4 with Canadian Urban Institute Prepared By: Fiaz Jadoon, Ec.D, CEcD, MPM Manager, Economic Development & Strategic Projects FJ:JH Approved/Endorsed By: Stan Karwowski, MBA, CPA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council a9t Tony Prevedel, P.Eng. Chief Administrative Officer ¢, 2018 430 DICKERING edy Report to Executive Committee Report Number: PLN 15-18 Date: June 18, 2018 From: Kyle Bentley Director, City Development & CBO Subject: Sole Source Purchase Whitevale (LED) Streetlight Replacement Project City of Pickering File: D-1100-063 Recommendations: 1. That the quote submitted by Holophane for 22 Radial Wave Luminaires and 22 Arms in the amount of $44,022.00 (HST excluded) be accepted in accordance with Purchasing Policy 09.04(d); 2. That the quote submitted by Langley Utilities Contracting Ltd. for installing the new Radial Wave Luminaires and Arms in the amount of $8,039.96 (HST excluded).be approved; 3. That the total project cost of $61,655.00 (HST included), including the amount of the luminaire quotation, installation quotation, and contingency, and the total net project cost of $55,522.00 (net of HST rebate) be approved; That the Director, Finance & Treasurer be authorized to finance the net project costs of $55,522.00 as follows: a) the sum of $51,376.00, as provided for in the 2018 Capital Budget 5325 Streetlights & Signalization by a transfer from the Sustainable Initiatives Reserve; b) the additional sum of $4,146.00 to be funded from property taxes and be charged to 2325.5981 account; 5. That City staff be authorized to sign any agreements between the City and Holophane and Langley Utilities Contracting Ltd. in a form satisfactory to the Director, Finance & Treasurer; and 6. That theappropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: In 2017, Realterm Energy Corp. was retained by the City to replace the City's streetlight luminaires to energy efficient Light Emitting Diode (LED) streetlight luminaires. All 7,265 luminaires are now replaced with the exception of the Highway 407/Brock Road interchange area and Highway 7 as these luminaries are currently under the ownership of the Ministry of Transportation and the Region of Durham. Also, 17 wooden poles were replaced within the Bay Ridges and West Shore Neighbourhoods due to structural deficiencies. In addition, none of the luminaries located near high tension wires needed to be relocated resulting in funds not having to be spent. 431 Report PLN 15-18 June 18, 2018 Subject: Whitevale (LED) Streetlight Replacement Project Page 2 Further, staff was directed by Council to consult with the Whitevale and District Residents' Association (WDRA) on the selection of a luminaire that best reflected the heritage character of the village. Several decorative and cobra head style fixtures were offered to the community as replacements. WDRA conducted a survey on the replacements and the respondents selected.a LED luminaire that replicates the radial wave luminaire currently in place. The 2018 Capital Budget has included funding for the Whitevale LED luminaire and arm replacement from .the Sustainable Initiatives Reserve: However, there is insufficient funds in the Reserve to cover the installation costs of the new LED luminaires and arms. Therefore, Council is requested to approve the use of property taxes to pay for these costs: Financial Implications: 1. Project Amount Radial Wave Luminaire and Arm Replacement HST (13%) Total $44,022.00 5,722.86 $49,744.86 2. Estimated Project Cost (Proposal + Other Costs) Summary Radial Wave Luminaire and Arm Replacement Installation costs Contingency (wiring, fusing) Sub Total HST (13%) Total Gross Project Cost HST Rebate (11.24%) Net Project Cost to City (incl. 1.76%) $44,022.00 8,040.00 2,500.00 $54,562.00 7,093.00 $61,655.00 (6,132.00) $55,522.00 3. Approved Source of Funds - 2018 Capital Budget Expenditure Account Source of Funds Budget 5325.1803.6252 Sustainable Initiatives $67,000,00 Reserve 2325.5981.0000 Current Budget Property Taxes $ 0.00 $67,000.00 Required $51,376.00 4,146.00 $55,522.00 432 Report PLN 15-18 Subject: Whitevale (LED) Streetlight. Replacement Project June 18, 2018 Page 3 Net projects (over) under approved funds $11,478.00 The funding for the Whitevale LED luminaires and arms is from the Sustainable Initiatives Reserve 7053. The additional funds required will be funded from the 2018 Current Budget — Street Lights Account 2325.5981.0000 — Other Fixed Assets. This account funded from property taxes provides an annual amount of $25,000 for miscellaneous streetlight installation. The Director, Engineering Services concurs with the use of these funds to cover the installation costs. 1. Background 1.1 In April 2017, Council endorsed staff recommendations to upgrade the City's streetlights to LED Following Council's approval, Realterm Energy Corp. (Realterm) proceeded to convert the City's streetlight luminaires to energy efficient LED streetlight luminaires over the summer and fall months of 2017..Highlights of the conversion program are as follows: • In total 7,265 streetlight luminaires were replaced with LED luminaires. There are areas where luminaires have not been converted, such as the Highway 407/Brock Road interchange area and along Highway 7, as these luminaires are not owned by the City. Ministry of Transportation staff have been advised of the City's preference for LED luminaires when these luminaires require replacing. 24 wooden poles were originally identified for replacement within the Bay Ridges and West Shore Neighborhoods due to structural deterioration. Upon further inspection, only 17 wooden poles were confirmed to require replacement. • Realterm recommended that the arms and luminaries located near high voltage lines may need to be relocated to a safer location on the hydro pole in order to enable future luminaire replacement. A budget of $100,000 was allocated for this work. However, Realterm's contractors were able to safely replace the luminaries at no additional cost. • City and Realterm staff have been working with 37 homeowners who expressed concerns with the brightness of the LED luminaire replacement. Solutions incorporated so far include: installing back shields to reduce light emissions, replacing luminaires, and adjusting the luminaire controls to dim the'light slightly without sacrificing RP -8 levels. • Based orrthe actual 2018 utility bills for the period of January to March, the total energy savings were 782,042 kWh, which translates into a 52 percent reduction of our electricity consumption. The total cost savings were $111,971, which is a 49 percent reduction of our utility bill. Additionally, maintenance savings were $53,771, which is a 50 percent cost reduction from 2017. 433 Report PLN 15-18 Subject: Whitevale (LED) Streetlight Replacement Project June 18, 2018 Page 4 1.2 Council directed staff to consult with the Whitevale District and Residents Association on the selection of an appropriate replacement for the current luminaire Staff consulted with the Whitevale District and Residents' Association (WDRA) on the selection of an appropriate LED lighting luminaire that would best reflect the character of the Heritage Conservation District. Based on three luminaire options (standard coach, slender coach and radial) that City staff put forward for consideration, WDRA conducted a vote among the residents. After two weeks of voting, the residents' overwhelming choice was to retain the radial style of luminaire currently in place. 2. Discussion Staff spent considerable time canvassing manufacturers for the LED radial wave luminaire and were able to find only one manufacturer in Canada who can provide this style of luminaire. Holophane, a custom manufacturer of High Intensity Discharge (HID) and LED lighting systems, can provide 22 radial wave luminaires and arms at a cost of $44,022 excluding HST (see Holophane Quote, Attachment #1). Staff recommend that Council authorize the purchase from Holophone in accordance with Purchasing Policy 09.04(d) that allows the purchase involving goods or services for which there is no reasonable substitute or competitive product. These luminaires also have the ability of accommodating smart controls that could be installed at some future date. Adding controls to the street lighting system offers many benefits such as increased energy and maintenance savings and the opportunity to use the smart street lighting network as a platform for other smart city applications. 3. Project Costs In the 2018 Capital Budget, 5325 Streetlights & Signalization, the Whitevale (LED) Streetlight Replacement was approved. The project includes the provision for the replacement of existing decorative High Pressure Sodium (HPS) luminaires to decorative LED luminaires and the provision for replacement arms. Funds are available in the Sustainable Initiatives Reserve 7503 to cover these costs. As Langley currently provides repair and maintenance services to the City's street lights, staff approached Langley for a quote to replace and install the new lights and arms (see Langley Quote, Attachment #3). However, there are insufficient funds in the Sustainable Initiatives Reserve 7053 to cover the entire installation costs of the LED luminaires. Council is therefore requested to approve the remaining installation and contingency costs in the amount of $4,146.00 from property taxes. 434 Report PLN 15-18 June 18, 2018 Subject: Whitevale (LED) Streetlight Replacement Project Page 5 Attachments 1. Holophane Quote, dated February 21, 2018 2. Langley Quote, dated April 17, 2018 Prepared By: Approved/Endorsed By: Grant McGregor, MCIP, RPP Kyle Bentley, P. Eng. Manager, Strategic Initiatives & Sustainability Director, City Development & CBO GM:Id Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer Richard Holrn, P. Eng. Ditor, Engineering Services Recommended for the consideration of Pickering Cit Council Tony Prevedel, P. Eng. Chief Administrative Officer 435' ilyBrandsCompany Quoted To: ACUITY BRANDS LIGHTING GTA SAL 35B MINTHORN BLVD THORNHILL, ON L3T7N5 Type ; Qty Catalog # 22 GRLF2 P20 30K AS 1 N L3 P7 PCLL Job Name: CITY OF PICKERING - WHITEVALE Quote #: 3029-17-11291-1 Quote Label: 1 Job Location: Issue Date: 2/21/2018 Bid Date: 9/27/2017 Quoted By: Ian Callaghan Ian.Callaghan©AcuityBrands.com Radial Wave GlassWerks LED GRLF2, 420mA Drive Current, 3000K, Auto -Sensing Voltage (120-277V), Arm, Green, Type 3 Asymmetric Full Cutoff LED, 7 Position dimming photocontrol receptacle, DTL long life twistlock . photocontrol for solid-state lighitng, 120-277V. 22 FAMAW T20 US4 SA Unit $ Ext $ $1,836.00 $40,392.00 $165.00 $3,630.00 n Aluminum Cantilever Arms, Wood Pole (FAMAW): FAMAW, 2 - 3/8" O.D. (2" NPS), 4•foot arm length, Satin Aluminum Fr Estimated Lead Time: EST. 10-12 WEEKS DELIVERY Notes * 120-277V * MOUNTING HARDWARE FOR ARM (FSMAW T20 US4 SA) TO BE SUPPLIED BY OTHERS * TAXES EXTRA * SUBJECT TO APPROVAL (BOM TO BE CONFIRMED BEFORE ORDERING) * P.O. TO BE PLACED WITH GUILLEVIN INTERNATIONAL CO., OSHAWA (CONTACT: TIM JACOBS) * INSTALLATION BY OTHERS Terms Grand Total: $44,022.00 HOLOPHANE: This quote is valid for 120 calendar days from date of quote unless otherwise noted on the quote. Shipment lead times begin the day after the order is released and are based on working days only. Shipments are FOB Shipping Point on all orders. Holophane shall pay freight on orders of $3,000 or more ($750 for replacement ballast kits) to all points in the continental United States and Canada. Upon release of your order, poles and non-standard material cannot be cancelled or. returned. Terms are subject to revision. Items with "Hold" status have not been allocated any labor, material, or scheduled production time. The lead time to shipment will begin when Holophane receives your clarification or approval to release your purchase order item(s) from "Hold" status. Prices in this acknowledgement are firm for release within a period of six months from the date of order. At the end of six months, Holophane, at its option, shall either increase prices by 3% or renegotiate pricing. Thereafter, escalation of 1-1/2% per three month period will be added. In the event of an extraordinary change in raw material costs, Holophane reserves the right to renegotiate pricing. Pricing will be reevaluated and confirmed upon receipt of your clarification or approval to release the purchase order item(s) from "Hold" status. Quote #: 3029-17-11291-1 Page 1 of 1 0 City of Pickering One The Esplanade Pickering, ON L1V 6K7 ATTACHMENT TO REPORT _PLA 15'-/ CORPORATE OFFICE 71 Mearns Court, Unit 220, Bowmanville, ON L1C 4N4 Tel. 1-800-836-6665 Fax: 1-905-623-0735 QUOTE # Q3601 Joh # 1128 DATE: 17 -Apr -18 O 905.420.4660 ext. 2064 C 905.767.6154 E mpelzowski@pickering.ca F Attention: Mike Pelzowski Job Site(S): Whitevale Street Scope of work: • Replace existing combination of various luminaires with City supplied luminaires in the hamlet of Whitevale Street 1 Remove and replace the existing heritage style luminaire with City supplied LED 2 Remove and replace the existing cobra style luminaire with City supplied LED 3 Remove and replace the existing coach style luminaire with City supplied LED 4 Remove and replace arms with the City supplied mast arms 5 Transport the existing heritage bonnet lights and heritage • arms to City's Operations Centre for storage Transportthe exiting aluminum channel conventional arms to City's Operations Centre for storage 7 Disposal of the existing cobra and coach Tight fixtures complete with a certificate of disposal 8 Return the mogul base trial LED bulb to Engineering/Mike. 6 Each Each Each 9 204.01 1836.09 7 204.01 1428.07 4 204.01 816.04 Each 20 146A4 2928.8 Lumpsum 1 225 225 Lumpsum 1 225 225 Each 20 25 500 Lumpsum 1 80.96 80.96 Total Unit Price Amount $8,039.96 NOTES: 1) Please fax or email a signed purchase order or quote prior to work commencing 2) Please contact Langley Utilities Contracting Ltd Head Office to arrange work schedule @ 1-800-836-6665 Total Quote: Plus HST#133922807 --13% TERMS: Terms Net 30 days Pricing Valid for 60 Days 437 C4 60r PICKERING Report to Executive Committee Report Number: PLN 16-18 Date: June 18, 2018 From: Kyle Bentley Director, City Development & CBO Subject: Proposed Telecommunication Towers Seaton Community File: D-1110-006 Recommendation: 1. That City Council endorse in principle the placement of telecommunication towers within City parks in the Seaton Community. Executive Summary: Bell Mobility has approached the City to discuss deploying its telecommunication towers to provide wireless service to future residents and businesses in the Seaton Community. Seaton parks provide suitable locations for wireless network infrastructure. The distribution of parks within Seaton is optimal for the carriers to provide wireless service, as their infrastructure would be spatially separated from surrounding residential areas and sensitive land uses. Parks typically have access to services nearby such as hydro and fiber optics able to support the tower and antenna facilities. Community parks can accommodate the larger macro towers, while the smaller macro (smacro) towers can be located in Neighbourhood Parks and Villages Greens. The current process of seeking Council approval of all lease agreements with the telecommunications providers will remain. Staff recommends that Council endorse in principle the siting of telecommunication towers within City parks in the Seaton Community. Financial Implications: No direct costs to the City are anticipated as a result of this Report. 1. Background As the first phase of Seaton development moves closer to occupancy, the major cellular and wireless carriers have contacted the City to discuss opportunities to deploy their telecommunication towers to address residential and business wireless needs. 2. Bell's Proposal In early 2017, Bell Mobility approached the City to discuss locating its telecommunication towers in the Seaton Community. The location of various community parks, neighborhood parks and villages in Seaton has been pre -planned pursuant to the Seaton Master Parks Agreement dated May 1, 2017 (approved by Council Resolution #279/17). Staff advised that these parks would provide Bell suitable locations for its wireless network. 438 Report PLN 16-18 Subject: Proposed Telecommunication Towers June 18, 2018 Page 2 Bell has proposed locating its telecommunication towers within the Seaton parks as a means to accommodate their wireless network across Seaton. Bell's proposal includes the following tower designs and locations: Macro towers located in Community Parks • multi -carrier tower • 40-50 metres in height • shrouded H -Mast style tri -pole tower • strongest, non -lattice, type tower, Tess need for reinforcement later • tends to retain its aesthetic look as more carriers co -locate • no risks of tower getting wider — unlike shrouded monopoles Smaller macro towers (smacro) located in Neighbourhood Parks • single -carrier tower • 15-20 metres in height • shrouded H -Mast style tri -pole tower • strongest, non -lattice, type tower, less need for reinforcement later • tends to retain its aesthetic look as more carriers co -locate • no risks of tower getting wider — unlike shrouded monopole 3. Number of Communication Towers and Village Greens Bell has provided a map denoting locations and numbers of telecommunication towers in Seaton (Seaton Long Range Wireless Plan, Attachment #1). Three macro towers are proposed in the large Community Parks and seven smacro towers are proposed in village greens and neighborhood parks. The large macro communication towers would permit multiple carriers and Emergency Services such as EMS or Durham Police Services. Bell is coordinating meetings with the other carriers to work on a standard design for the macro towers as well as the smacros. Once there is carrier agreement on the design, information outlining specific locations and design options will be submitted to staff for review. The smaller macros can only accommodate a single carrier so others carrier may require their own smacro sites in Seaton. 439 Report PLN 16-18 June 18, 2018 Subject: Proposed Telecommunication Towers Page 3 4. Discussion 4.1 The City's parks are appropriate locations for telecommunication towers Staff have considered the locational and siting requirements of the telecommunication towers and have determined that the City's parks are appropriate for these structures as they offer the following benefits: • provides good distribution within the Seaton Community thereby providing optimal wireless coverage • streamlines and improves the telecommunication tower siting process • avoids sensitive land uses • ensures adequate separation from residential homes • enables site review process that ensures style, screening, access, equipment shelters, colors, lighting, signage are designed in concert with other City infrastructure planning i.e., park benches • site services available i.e., hydro, fiber optics; and • leasing or revenue opportunities 4.2 Consultation with the telecommunication industry will streamline the telecommunication tower siting process Telecommunications and related facilities are regulated by the Federal Government (specifically Industry Canada) under the Radiocommunications Act. Proponents of wireless facilities are required to consult with local government and the public as part of the approval for proposed antenna installation prior to construction. Consultation is one of the most important elements in the tower siting process as it generally occurs at a point before the proponent is committed to a site or design. As a result, it represents the best opportunity to influence the siting decision since the proponent will more likely become committed to a site once the detailed engineering work has been completed. The telecommunication industry's willingness to engage in discussions with the City in the placement of telecommunication towers as early as possible is appreciated. By initiating early consultation, a more streamlined and improved telecommunication tower siting process should result that minimizes public concerns. The current process of seeking Council approval of all lease agreements with proponents will remain. 5. Recommendation Staff are supportive of Bell's proposal and therefore are recommending that Council endorse in principle the placement of telecommunication towers within designated parks in the Seaton Community. 440 Report PLN 16-18 June 18, 2018 Subject: Proposed Telecommunication Towers Page 4 Attachment 1. Seaton Long Range Wireless Plan Prepared By: Approved/Endorsed By: J1(1ri�. Me Grant McGregor, MCIP, RPP Manager, Strategic Initiatives & Sustainability GM:Id Li64 Kyl- :entley, P.Eng. D'�'ecfn City Development & C130 orate Services & City Solicitor Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer 4,10 j 441 ro City of Pickering - Seaton Long Range Wireless Plan — Bell Mobility 2017 1 CP - Macro -3 Standard Telecommunication Towers proposed (40 -50m in height) in the larger Community Parks (CP) -These would permit multiple carriers and Emergency Services r• -' I r e• �ti T. ci ILi 11 J fes- 1 r .. 7F i'�__-- a '' L . VG & NP -Smacro -7 small macro sites (smacros) proposed in the Village Greens (VG) and Neighbourhood Parks (NP) -These are single carrier (Bell Mobility) sites integrated into smaller park spaces LMP - ,macro i'='G • Smacro m m l C!y o� P1CKER1 NG Report to Executive Committee Report Number: PLN 19-18 Date: June 18, 2018 From: Kyle Bentley Director, City Development & CBO Subject: Purchase of Electric Vehicles and Charging Stations File: D-7000-002 Recommendation: 1. That Council approve the Workplace Electric Vehicle Charging Incentive Program (WEVCIP) as an alternate funding source of $22,500.00 for the purchase of electric charging stations; 2. That Councilauthorize the Director, Finance & Treasurer to revise the source of funding from Municipal GHG Challenge Fund in the amount of $22,000.00 to Vehicle Replacement Reserve 7040; and 3. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: In November 2017, the City applied for the Municipal GHG Challenge Fund for the purchase of electrical vehicles and charging stations. A funding request of $116,600.00 was submitted to cover 50 percent of the eligible projects costs to purchase 2 all -electric vehicles, 2 plug-in hybrid sport utility vehicle (SUV) electric vehicles and 4 Level 2 electric charging stations to serve the City fleet. A Level 2 charger can charge a battery from empty to 80 percent in 4 hours. In March 2018, after Council approved the 2018 budget, the Province announced that the City's application was not successful. In January 2018, the Province of Ontario announced the Workplace Electric Vehicle Charging Incentive Program (WEVCIP). This incentive program is setup on a first come first served basis, and the City diligently applied as an alternative option to the Municipal GHG Challenge Fund to cover the electric charging stations. In May 2018, the Province approved the City's application for the WEVCIP to purchase electric charging stations for an amount of $22,500.00. Also, with the purchase of the electric vehicles, the City intends to apply for the Electric Vehicle Incentive Program (EVIP), which provides a government rebate of $7,000.00 for the plug-in hybrid electric vehicle and $14,000.00 for the ail -electric vehicle. Therefore, the City would like to proceed with the purchase of 1 plug-in hybrid SUV electric vehicle, 1 all -electric vehicle, and 4 Level 2 electric charging stations. Additionally, there are vehicle costs and Greenhouse Gas (GHG) savings with fuel switching from gasoline powered vehicles to electric. Based on a typical 8 -year ownership of the vehicle, the electrification of the City fleet will save a total of $23,304.00 from fuel switching costs and a total GHG savings of 66,368 kg of CO2 for 1 plug-in hybrid and 1 all -electric vehicle. Also, these GHG savings support the City's Corporate Energy Management Plan (CEMP) GHG reduction targets. 443 Report PLN 19-18 June 18, 2018 Subject: Purchase of Electric Vehicles and Charging Stations Page 2 Other benefits of electrification of the City fleet include low maintenance, reduced noise pollution, no tailpipe emissions and a visual reminder of the City's commitment to a low carbon future. If successful in the purchase of the electric vehicles, the City intends to track the cost, maintenance and GHG savings for a 12 -month period to provide actual savings. The purchase of electric vehicles and charging stations makes economic sense, and demonstrates the City's leadership in innovation and environmental sustainability. Financial Implications: Approved Source of Funds 2018. Capital Budget Description Account Code Source of Funds Midsize SUV 5220.1801.0000 Municipal GHG Replacement Challenge Grant Vehicle Replacement Reserve New Electric Vehicles (2)* 5612.1802.0000 Municipal GHG *Budgeted for 2 vehicles, Challenge Grant but only purchasing one. Vehicle Replacement Reserve Budget $22,500.00 Actual $0.00 $22,500.00 $45,000.00 $45,000.00 $0.00 $45,000.00 $45,000.00 Electric Vehicle Charging 5700.1807.000 Municipal GHG $22,000.00 $0.00 Stations — New Total Challenge Grant Vehicle $22,000.00 $22,000.00 Replacement Reserve WEVCIP Grant $0.00 $179,000.00 $22,500.00 $134,500.00 Net costs under approved funds $22,000.00 The funding for the electric vehicles and charging stations is from the Vehicle Replacement Reserve 7040. Also, the City has received approval for the WEVCIP for the amount of $22,500.00. The additional funds of $22,000.00 required will also be funded from the Vehicle Replacement Reserve 7040. The Director, Finance & Treasurer concurs with the use of these funds to cover the purchase of the electric vehicles and charging stations. 444 Report PLN 19-18 June 18, 2018 Subject: Purchase of Electric Vehicles and Charging Stations Page 3 Additionally, the City intends to apply for the EVIP which provides a government rebate of $7,000.00 for each plug-in hybrid SUV electric vehicle and $14,000.00 for the all -electric vehicle. This incentive will be received upon successful purchase of the vehicles and proof of payment documentation. The incentives received from EVIP will be deposited back into the Vehicle Replacement Reserve 7040. 1. Background 1.1 Municipal GHG Challenge Fund Update In November 2017, the Province of Ontario announced the Municipal GHG. Challenge Fund as part of Ontario's Climate Change Action Plan to address climate change, reduce Greenhouse Gas (GHG) emissions and transition to a low -carbon economy. The action plan and the cap and trade program form the backbone of Ontario's strategy to cut GHG emissions to 15 percent below 1990 levels by 2020, 37 percent by 2030, and 80 percent by 2050. Accordingly, the City submitted an application to receive funds to purchase electrical vehicles and charging stations. A funding request of $116,600.00 was made to cover 50 percent of the eligible projects costs to purchase 2 all -electric vehicles, 2 plug-in hybrid sport utility vehicle (SUV) electric vehicles and 4 Level 2 electric charging stations to serve the City fleet. The estimated total GHG reduction is 427,000 kg of CO2. The electrifying of the fleet would help reduce the City's Corporate Energy Management Plan (CEMP) GHG reduction targets. The application is also consistent with the City's practice of replacing existing conventional gas engine vehicles with more fuel-efficient and hybrid vehicles. In 2017, the City purchased 6 SUV's and 3 pick-up trucks with reduced engine sizes. In March 2018, the Province announced recipients of the awarded funding. Unfortunately, the City's application was not selected for the current round of funding. The Climate Change Action Plan is a 5 -year plan and there will be multiple rounds of the Municipal GHG Challenge Fund, pending the availability of carbon market proceeds. 1.2 Approval of Workplace Electric Vehicle Charging Incentive Program In January 2018, the Province of Ontario announced the Workplace Electric Vehicle Charging Incentive Program (WEVCIP). As part of the Climate Change Action Plan, the governmentis taking action to increase the number of electric vehicle (EV) charging opportunities in Ontario in an effort to accelerate the electrification of transportation. This incentive program is setup on a first come first serve basis, and the City diligently applied as alternative option to the Municipal GHG Challenge Fund to cover the costs of the electric charging stations component. In May 2018, the Province approved the City for the WEVCIP. Upon successful purchase and installation of the charging stations, the City.is eligible to receive funds for the amount of $22,500.00 (see WEVCIP Notification of Approval, Attachment #1). 445 Report PLN 19-18 June 18, 2018 Subject: Purchase of Electric Vehicles and Charging Stations Page 4 2. Discussion Although the City did not receive the Municipal GHG Challenge Fund for the purchase of electrical vehicles and charging stations, the City did receive approval for the WEVCIP. Also, the City is eligible to receive incentives from the Electric Vehicle Incentive Program (EVIP) after the purchase of the electric vehicles. Thus, staff would like to proceed with the purchase of 1 plug-in hybrid SUV electric vehicle, 1 all -electric vehicle, and 4 Level 2 electric charging stations. The purchase of the electric vehicles and charging stations are being made in accordance with Section 13 Cooperative Purchasing of the Purchasing Policy. Moreover, there are cost savings with fuel switching the City fleet from gasoline powered vehicles to electric. Based on a typical 8 -year ownership of the vehicle, the electric midsize SUV will save $7,488.00 and the Compact Sedan would save $15,816.00 from fuel switching costs. This totals $23,304.00 from fuel costs for 1 plug-in hybrid and 1 all -electric vehicle. Additionally, there are GHG savings from the electrification of the corporate fleet. Based on a typical 8 -year ownership, the electrification of the midsize SUV would save 22,424 kg of CO2 and the Compact Sedan would save 43,944 kg of CO2. This results in a total GHG savings of 66,368 kg of CO2 for 1 plug-in hybrid and 1 all -electric vehicle (see EV Cost & GHG Savings, Attachment #2). Also, these GHG savings support the City's CEMP GHG reduction targets. Other benefits of electrification of the City fleet include low maintenance, reduced noise pollution, no tailpipe emissions and a visual reminder of the City's commitment to a low carbon future. If successful in the purchase of the electric vehicles, the City plans on tracking the cost, maintenance and GHG savings for a 12 -month period to provide actual savings. Staff recommend the purchase of electric vehicles and charging stations as it makes economic sense and demonstrates the City's leadership in innovation and environmental sustainability: 3. Project Costs The total cost of the project is $179,500 for the purchase of electric vehicles, and charging stations. As per the 2018 Capital Budget, 50 percent of the funding for the electric vehicles and charging stations is from the Vehicle Replacement Reserve 7040. The City has received approval for the WEVCIP for the amount of $22,500.00. The difference in additional funds of $22,000.00 required will also be funded from the Vehicle Replacement Reserve 7040. Additionally, upon successful purchase of the electric vehicles, the City is eligible to receive $7,000.00 for the plug-in hybrid electric vehicle and $14,000.00 for the all -electric vehicle from the EVIP, which will be deposited back in to the Vehicle Replacement Reserve 7040. 446 Report PLN 19-18 June 18, 2018 Subject: Purchase of Electric Vehicles and Charging Stations Page 5 Attachments: 1. WEVCIP Notification of Approval 2. EV Cost & GHO Savings Prepared By: Approved/Endorsed By: NJ e Abid Syed, P. Eng. Coordinator, Energy Management AS:Id Grant McGregor, MCIP, RPP Manager, Strategic Initiatives & Sustainability /1/ 67..44 Kyle Bentley, P. Eng. Director, City Development & CBO Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer jaw 4, 2018 447 ATTACHMENT ;/ /1 TO REPorn P&i' 161 Syed, Abid From: Workplace Electric Vehicle Charging Incentive Program (MTO) <WEVClP@ontario.ca> Sent: Wednesday, May 16, 2018 '10:28 AM To: Syed, Abid Subject: WEVCIP Notification of Approval Attachments: Completion Report Template WEVCIP (2018-02-09),pdf; WEVCIP EFT FORM,PDF Notification of Approval Dear Abid Syed, Thank you far your interest in the Workplace Electric Vehicle Charging Incentive Program (WEVCIP). We are pleased to inform you that your application of 2/6/2018, with a Grants Ontario number of 2018-02-1-739160117 to install 3 charger(s) at 1 The Esplanade (the "Project") has been approved, and subject to completing your Project as described, and ensuring it meets the requirements set out in the WEVCIP Program Guide, your Project will be eligible for up to a maximum of $22500 in WEVCIP funding. Please remember that the terms and expressions defined in Appendix 1 to the Workplace Electric Vehicle Charging Incentive Program Guide apply to this Notification of Approval Letter. The Ministry would like to confirm that you have six months (180 days) from the approval date of 5/16/2018 to complete your project; this means that you have until 11/1212018 to submit the required documentation to the Ministry of Transportation via email to WEVCIP@ontario.ca. Hard copies submitted via mail or fax will not be accepted. If you do not comply, your approval and funding is rescinded. The documentation that must be submitted by 11/12/2018 includes a Completion Report to document your completion of the Project, which must include: • A signed report indicating acceptance of and compliance with the WEVCIP terms and conditions (please see the attached "Completion Report" template); Site photos showing the installed charging stations identified in this letter, the required signage, and the site conditions; Electrical Safety Authority certificate of final inspection; Copies of documentation showing total Eligible Project Costs (including receipts and invoices), and final charging station purchase agreements or lease agreements (with confirmation of funds that have been paid for the Project); Once the Ministry has reviewed the documentation and confirmed compliance, and assuming all terms and conditions are met, will provide you with the applicable funding. Please fill out the bank account information in the attached Electronic Funds Transfer (EFT) form and send it back to us along with a void cheque by emailing WEVCIP@ontario.ca 448 ATTACHMENT #- / TO REPOR1 # PE -1\ If you change dr are unable to complete your Project as described in your application, or in the event there are any material changes to the information contained in the application, please notify the Ministry as soon as possible by phoning 1-866-999-9018, or by emailing WEVCIPt ontario.ca. Failure to notify the Ministry of any material changes to the information contained in the application may result in the suspension or revocation of this Notification of Approval, or the Ministry exercising any of its other rights or remedies. Sincerely, Iris Fawcett Manager Transportation Programs Office, Ministry of Transportation 2 449. EV Cost & GHG Savings Midsize SUV: Cost Savings Equivalent Gasoline SUV Plug -In Hybrid SUV Annual Cost to Drive* $2,457 $1,521 Cost of Ownership** $19,656 $12,168 Total Cost Savings - $7,488 Greenhouse Gas (CO2) Savings Equivalent Gasoline SUV Plug -In Hybrid SUV Annual Emissions of CO2 (kg)* 5,773 2,970 Total Emissions of CO2 (kg)** 46,184 23,760 Total Savings of CO2 (kg) - 22,424 Compact Sedan: Cost Savings Equivalent Gasoline Compact Sedan All -Electric Compact Sedan Annual Cost to Drive* $2,457 $480 . Cost of Ownership** $19,656 $3,840 Total Cost Savings - $15,816 Greenhouse Gas (CO2) Savings Equivalent Gasoline Compact Sedan AII-Electric Compact Sedan Annual Emissions of CO2 (kg)* 5,773 280 Total Emissions of CO2 (kg)** 46,184 2,240 Total Savings of CO2 (kg) - 43,944 * ** Based on average annual driving distance of 20,000 km Based on typical 8 year vehicle ownership Source: https://www.plugndrive.ca