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Home My WebLink AboutDecember 14, 2020Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca Due to COVID-19 and the Premier’s Emergency Orders to limit gatherings and maintain physical distancing, the City of Pickering continues to hold electronic Council and Committee Meetings. Members of the public may observe the meeting proceedings by viewing the livestream. A recording of the meeting will also be available on the City’s website following the meeting. Page 1.Roll Call 2.Invocation Mayor Ryan will call the meeting to order and lead Council in the saying of the Invocation. 3.Indigenous Land Acknowledgment Statement Mayor Ryan will read the Indigenous Land Acknowledgment Statement. 4.Disclosure of Interest 5.Adoption of Minutes In Camera Council Minutes, November 23, 2020 Under Separate Cover Council Minutes, November 23, 2020 1 Executive Committee Minutes, December 7, 2020 17 Special Council Minutes, December 7, 2020 28 Planning & Development Committee Minutes, December 7, 2020 31 6.Presentations 7.Delegations Due to COVID-19 and the Premier’s Emergency Orders to limit gatherings and maintain physical distancing, members of the public may provide a verbal delegation to Members of Council via electronic participation. To register as a delegate, visit www.pickering.ca/delegation, and complete the on-line delegation form or email clerks@pickering.ca. Delegation requests must be received by noon on the last business day before the scheduled meeting. All delegations for items not listed on the agenda shall register ten (10) days prior to the meeting date. Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca The list of delegates who have registered to speak will be called upon one by one by the Chair and invited to join the meeting via audio connection. A maximum of 10 minutes shall be allotted for each delegation. Please ensure you provide the phone number that you wish to be contacted on. Please be advised that your name and address will appear in the public record and will be posted on the City’s website as part of the meeting minutes. 8. Correspondence 8.1 Corr. 59-20 39 Jennifer Bennett, Deputy Clerk Municipality Of Marmora and Lake Re: Council Resolution – Accessibility for Ontarians with Disabilities Act – Website support Recommendation: That Corr. 59-20, from Jennifer Bennett, Deputy Clerk, Municipality Of Marmora and Lake, dated November 25, 2020, regarding the Council Resolution – Accessibility for Ontarians with Disabilities Act – Website support, be endorsed. 8.2 Corr. 60-20 41 Ralph Walton, Regional Clerk The Regional Municipality of Durham Re: Envision Durham – Framework for a New Regional Official Plan (2020-P-24), Recommendation: 1. That Corr. 60-20, from Ralph Walton, Regional Clerk, the Regional Municipality of Durham, dated November 26, 2020, regarding the Envision Durham – Framework for a New Regional Official Plan (2020-P-24), be received for information; and, 2. That Corr. 60-20 be referred to the Director, City Development & CBO, for a review, as it pertains to the City of Pickering, and report back, with their comments, no later than the February Council Meeting. Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca 8.3 Corr. 61-20 50 Kevin Narraway, Manager of Legislative Services/Deputy Clerk Town of Whitby Re: Correspondence # 2020-887 received by C. Harris, Town Clerk, from Central Lake Ontario Conservation Authority (CLOCA) regarding Bill 229, Protect, Support and Recover from COVID-19 Act - Schedule 6 - Conservation Authorities Act Recommendation: That Corr. 61-20, from Kevin Narraway, Manager of Legislative Services/Deputy Clerk, Town of Whitby, dated November 25, 2020, regarding a Correspondence # 2020-887 received by C. Harris, Town Clerk, from Central Lake Ontario Conservation Authority (CLOCA) regarding Bill 229, Protect, Support and Recover from COVID-19 Act - Schedule 6 - Conservation Authorities Act, be received for information. 8.4 Corr. 62-20 52 Association of Municipalities of Ontario AMO Policy Update – Bill 229, Schedule 6 (CA Act) Proposed Amendments That Corr. 62-20, from the Association of Municipalities of Ontario (AMO), dated November 30, 2020, regarding the AMO Policy Update – Bill 229, Schedule 6 (CA Act) Proposed Amendments, be received for information. 9. Report EC 2020-09 of the Executive Committee held on December 7, 2020 Refer to Executive Committee Agenda pages: 9.1 Director, Finance & Treasurer, Report FIN 17-20 1 Statutory Public Meeting Regarding Development Charges Update Study Recommendation: 1. That Report FIN 17-20 of the Director, Finance & Treasurer be received; 2. That Council receive for information the City of Pickering – Development Charges (DC) Update Study prepared by Watson & Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca Associates Economists Ltd. dated October 15, 2020 and Addendum to the DC Update Study dated November 2, 2020; 3. That all written submissions made at the December 7, 2020 Public Meeting or received in writing from the public by December 9, 2020 be referred to staff and to Watson & Associates Economists Ltd. for consideration in preparation of the final Development Charges recommendations and By-law for Council’s consideration on December 14, 2020; and, 4. That the appropriate City of Pickering officials be authorized to take the actions as indicated in this report. 9.2 Director, Corporate Services & City Solicitor, Report BYL 05-20 64 Deferral of Implementation of Accessible Service Supplement Fees Vehicle for Hire By-law Recommendation: 1. That Report BYL 05-20 respecting a deferral of the implementation of the Accessible Service Supplement enacted in the Vehicle for Hire By-law 7739/20 be received; 2. That the implementation and collection of the Vehicle for Hire Accessible Service Supplement be deferred until January 1, 2022; and, 3. That appropriate City of Pickering officials be authorized to take the actions necessary to implement the recommendations in this report. 9.3 (Acting) Director, Community Services, Report CS 31-20 67 Cultural Strategic Plan - Mid-term Update This item was referred back to staff at the Executive Committee meeting held on December 7, 2020. 9.4 Director, Engineering Services, Report ENG 11-20 146 Stormwater Management Facilities Asset Management Plan - Final Report July 2020 Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca Recommendation: 1. That the Stormwater Management Facilities Asset Management Plan, Final Report July 2020, prepared by The Municipal Infrastructure Group Ltd. a T.Y. LIN International Company be received for information; 2. That Council endorse the Stormwater Management Facilities Asset Management Plan to be used by staff as a resource document for identifying and planning maintenance projects for the Stormwater Management Facilities under the jurisdiction of the City of Pickering; 3. That staff be authorized to implement the recommendations within the Stormwater Management Facilities Asset Management Plan, subject to budget and further Council approval for the individual projects; and, 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. 9.5 Director, Engineering Services, Report ENG 14-20 217 Proposed All-way Stop Control, Pickering Parkway and Glenanna Road Recommendation: 1. That the attached draft by-law be enacted to amend Schedule "7" to By-law 6604/05 to provide for the regulation of stop signs on highways or parts of highways under the jurisdiction of The Corporation of the City of Pickering, specifically to address the proposed installation of an all-way stop control at the intersection of Pickering Parkway and Glenanna Road; and, 2. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. 9.6 Director, Finance & Treasurer, Report FIN 15-20 223 2021 Interim Spending Authority Recommendation: Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca 1. That the 2021 Interim Operating Expenditures be approved at 50 per cent of the prior year’s budget, including adjustments, as contained in Attachment 1, pending approval of the 2021 Current Budget by Council; and, 2. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. 9.7 Director, Finance & Treasurer, Report FIN 16-20 226 2021 Temporary Borrowing By-law Recommendation: 1. That the temporary borrowing limit of $55 million be established to meet 2021 current expenditures pending receipt of taxes and other revenues for the period of January 1 to September 30, 2021 inclusive, and $27 million thereafter until December 31, 2021; 2. That the temporary borrowing limit for capital purposes for 2021 be established at $63 million; 3. That the attached draft by-law providing for the temporary borrowing of monies be enacted; and, 4. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. 9.8 Director, Corporate Services & City Solicitor, Report LEG 10-20 231 Retail Sale of Cannabis in Pickering Recommendation: 1. That the City of Pickering hereby opts in to allow cannabis retail stores within Pickering; 2. That a copy of these recommendations be forwarded to the Alcohol and Gaming Commission of Ontario ("AGCO"); and, 3. That the appropriate City of Pickering officials be authorized to take such actions as are necessary to implement the recommendations in this report. Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca 9.9 Director, City Development & CBO, Report PLN 31-20 262 Heritage Property Tax Relief Program and Implementing By-law City of Pickering This item was referred back to staff at the Executive Committee meeting held on December 7, 2020. 10. Report PD 2020-09 of the Planning & Development Committee held on December 7, 2020 Refer to Planning & Development Agenda pages: 10.1 Director, City Development & CBO, Report PLN 24-20 17 City Initiated Official Plan Amendment: Ecosystem Compensation Recommended Amendment 35 to the Pickering Official Plan File: OPA 19-003/P This item was referred back to staff at the Planning & Development Committee meeting held on December 7, 2020. 10.2 Director, City Development & CBO, Report PLN 25-20 29 Memorandum of Understanding between the City of Pickering and the Toronto and Region Conservation Authority regarding the administration and collection of fees and technical guidance in relation to the TRCA’s Guideline for Determining Ecosystem Compensation, June 2018 This item was referred back to staff at the Planning & Development Committee meeting held on December 7, 2020. 10.3 Director, City Development & CBO, Report PLN 28-20 49 Zoning By-law Amendment Application A 10/18 City Initiated: Rotary Frenchman’s Bay West Park Recommendation: That City Initiated Zoning By-law Amendment Application A 10/18 to zone lands within Rotary Frenchman’s Bay West Park from “R4” – Detached Dwelling Fourth Density and “G” – Greenbelt to “OS” – Open Space, be approved and that the draft Zoning By-law Amendment as set out in Appendix I to Report PLN 28-20, be enacted by Council. Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca 10.4 Director, City Development & CBO, Report PLN 29-20 63 Official Plan Amendment OPA 19-004/P Zoning By-law Amendment Application A 14/19 Draft Plan of Subdivision Application SP-2019-04 Draft Plan of Condominium Application CP-2019-05 Katanna Oklahoma LP Part of Lot 28, Broken Front Concession Range 3, Now Part of Part 1, 40R-2401 (755 Oklahoma Drive) Recommendation: 1. That Official Plan Amendment Application OPA 19-004/P, submitted by Katanna Oklahoma LP, to re-designate the lands located on the southeast corner of Eyer Drive and Oklahoma Drive from “Urban Residential Areas – Low Density Areas” to “Urban Residential Areas – Medium Density Areas” to allow a residential common element condominium development be approved, and that the draft by-law to adopt Amendment 41 to the Pickering Official Plan as set out in Appendix I to Report PLN 29-20 be forwarded to Council for enactment; 2. That Zoning By-law Amendment Application A 14/19, submitted by Katanna Oklahoma LP, to facilitate a residential common element condominium development consisting of 27 townhouse units on the lands located at the southeast corner of Eyer Drive and Oklahoma Drive, be endorsed subject to the provisions contained in Appendix II to Report PLN 29-20, and that staff be authorized to finalize and forward an implementing Zoning By-law to Council for enactment; and, 3. That Draft Plan of Subdivision Application SP-2019-04, submitted by Katanna Oklahoma LP, to establish a single development block to facilitate a common element condominium, and a block for a road widening, as shown on Attachment #6 to Report PLN 29-20, and the implementing conditions of approval, as set out in Appendix III, be endorsed. Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca 10.5 Director, City Development & CBO, Report PLN 30-20 99 Zoning By-law Amendment Application A 01/20 Universal City Six Developments Inc. Part of Lot 21, Concession 1 South, Now Part 2, 40R-18785 (1010 Sandy Beach Road) Recommendation: That Zoning By-law Amendment Application A 01/20, submitted by Universal City Six Developments Inc., to permit a high-density residential condominium building, be approved, and that the implementing Zoning By- law Amendment be forwarded to Council for enactment. 11. Reports – New and Unfinished Business 11.1 Director, Finance & Treasurer, Report FIN 18-20 54 2019 Year End Audit Consultant Delegation (Available for questions if needed) Pina Colavecchia, Partner, Deloitte LLP on Report FIN 18-20 Recommendation: 1. That the Report to Council on the 2019 Audit as submitted by Deloitte LLP (Deloitte) be received for information; and, 2. That the 2019 draft Audited Consolidated Financial Statements for the City of Pickering be approved. 11.2 (Acting) Director, Community Services, Report CS 02-20 125 Tender for Chestnut Hill Developments Recreation Complex – Lobby & Core Area Renovations – Construction Recommendation: 1. That Tender No. T2020-16 submitted by 1568796 Ontario Inc., O/A Renokrew in the amount of $5,587,299.13 (HST included) be accepted; Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca 2. That the total gross project cost of $6,257,776.00 (HST included), including the amount of the tender, contingency, and other associated costs, and the total net project cost of $5,635,321.00 (net of HST rebate), be approved; 3. That Council authorize the Director, Finance & Treasurer to finance the net project cost of $5,635,321.00 as follows: a) the sum of $6,000,000.00 as provided for in the 2020 Recreation Complex-Core Capital Budget be revised to $5,600,000.00, and be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed 20 years; b) the balance sum of $35,321.00 to be funded by a transfer from the Rate Stabilization Reserve; c) the annual repayment charges in the approximate amount of $395,000.00 be provided for in the annual Current Budget commencing in 2021 or subsequent year in which the debentures are issued and continuing thereafter until the debenture financing is repaid; and, 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 City of Pickering officials be authorized to take the necessary actions as indicated in this report. 11.3 Director, Economic Development & Strategic Projects, Report CAO 07-20 136 Economic Development & Strategic Projects Year End Review Recommendation: That report CAO 07-20 regarding Economic Development & Strategic Projects Year End Review be received for information. Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca 11.4 Director, Engineering Services, Report ENG 15-20 143 Request for Additional Funding for Consulting Services - Beachfront Park Rehabilitation & Needs Assessment Study Recommendation: 1. That the additional fee proposal as submitted by the MBTW Group Inc. in the gross amount of $15,086.00 (HST included) and a net amount of $13,585.00 (net of HST rebate) for the increase in scope of work for the Beachfront Park Rehabilitation & Needs Assessment Study, and associated costs for Geotechnical Investigations in the gross amount of $1,718.00 (HST included) and a net amount of $1,547.00 (net of HST rebate) be accepted; 2. That the Director, Finance & Treasurer be authorized to finance the increase in the total net project cost in the amount of $15,132.00 as follows: a) The sum of $10,214.00 by a transfer from the Development Charges Growth-Related Studies Reserve Fund; and, b) The sum of $4,918.00 from property taxes; 3. That the appropriate officials of the City of Pickering to authorized to take the necessary actions as indicated in this report. 11.5 Director, City Development & CBO, Report PLN 32-20 153 Two-year Period Exemption Request for Minor Variance Application P/CA 66/20 Trillium Housing Oak Non-Profit Corporation Part Lot 18, Concession 3 Now Part 1, 40R-29457 (2635 William Jackson Drive) Recommendation: That Council grant an exemption in accordance with Section 45 (1.4) of the Planning Act, R.S.O. 1990; c. P.13 as amended, and permit the Committee of Adjustment to consider Minor Variance Application P/CA 66/20 resulting from the further processing of the Site Plan or Building Permit applications, submitted by Trillium Housing Oak Non-Profit Corporation, for land municipally known as 2635 William Jackson Drive, Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca before the second anniversary of the day on which an applicant-initiated zoning by-law amendment was enacted for the subject lands. 11.6 Director, Finance & Treasurer, Report FIN 19-20 159 2020 Development Charges Update Study Recommendation: 1. That Report FIN 19-20 of the Director, Finance & Treasurer be received; 2. That Council receive for information and approve the 2020 Development Charges Update Study-Office Consolidation of October 15, 2020 and November 2, 2020 Addendum, prepared by Watson & Associates Economists Ltd. dated November 2, 2020; 3. That the originally proposed By-law has not been modified since the public meeting on December 7, 2019 and Council confirms that no further public meeting under the Development Charges Act, 1997 (s.12) is necessary as a result; 4. That the draft By-law attached to this report be enacted; 5. That the City Clerk be instructed to undertake the By-law passage notification provisions under the Development Charges Act, 1997 and Ontario Regulation 82/98; 6. That subject to Council approval of the 2021 Budget, Council approve the hiring of the firm Watson & Associates Economists Ltd., to be retained for the 2021/2022 Development Charges Background Study and the Community Benefit Charge Study at a cost not to exceed $70,000 to be financed from the Development Charges Reserve Funds-Growth-Related Studies; and, 7. That the appropriate City of Pickering officials be authorized to take the actions as indicated in this report. 12. Motions and Notice of Motions 12.1 Request to Repeal Schedule 6 of Bill 229 the Protect, Support and Recover from COVID-19 Act (Budget Measures 2020) Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca Moved by Councillor Brenner Seconded by Councillor McLean WHEREAS, the Province of Ontario has enacted Bill 229 the Protect, Support and Recover from COVID-19 Act (Budget Measures 2020) Schedule 6 – Conservations Act; And Whereas, the Legislation will result in a number of changes and new sections to the Conservation Act that removes and/or significantly hinder the ability of conservation authorities in regulating development, permit appeal process and engaging in the review and appeal of Planning Act applications; And Whereas, these changes have raised concerns with conservation authorities and municipalities across Ontario as well as the Association of Municipalities of Ontario; And Whereas, the changes give new powers to the Minister to issue conservation authority permits that mirrors the Ministerial Zoning Order powers of the province to make land use and zoning decisions without a Council decision and without due public process, and creates a serious risk that one-off site-specific permits approved outside of the context of a local flood plan management program could pose a greater flood risk to downstream properties without an appropriate mitigation plan; And Whereas, amendments to the Planning Act will limit a conservation authority’s ability to participate at Local Planning Appeal Tribunal (LPAT) hearings; And Whereas, the City of Pickering has relied on the expertise from TRCA to provide sound scientific and technical input into complex environmental planning matters to guide Council’s decision on Planning Act applications such as the Nautical Village and Pickering’s Waterfront; And Whereas, The City does not employ or retain expertise in terrestrial and aquatic ecology and other science-based disciplines. The amendments leave the City of Pickering at greater risk to defend environmental issues without the TRCA’s support and could result in unforeseen costs to Pickering and landowners to retain needed expertise and cause unnecessary delays in the approval process; Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca And Whereas, changes will remove the un-proclaimed provisions of Bill 139 (2017) that allow conservation authorities to issue stop work orders where there is a contravention of Section 28 regulations, and removes the enforcement tools that are necessary to protect wetlands and to stop interference and modifications in hazard lands for public health and safety; And Whereas, changes would prohibit conservation authorities from independently appealing Planning Act applications to LPAT, and shifting responsibility for enforcing natural hazard/heritage requirements to the City of Pickering; And Whereas, changes redefines the conservation authorities purpose as the delivery of mandatory programs and services (natural hazards, conservation land management and source water protection) among other programs delivered on behalf of a municipality, and would result in municipalities having to make a decision to opt in to assume these functions and separately fund watershed planning programs or choosing to not opt in leaving a diminished and ineffective role by conservation authorities; And Whereas, Municipal Councillors who were previously appointed to sit on the conservation authority boards would be given the authority to act on behalf of municipal interests and make recommendations to the Minister, creating a conflict between the fiduciary duty of conservation authority board members and the proposed amendment requiring board members to act on behalf of their respective councils, and provides a potential bypass of the local development approval process, resulting in the loss of scientific analysis; Now Therefore be it resolved that the Council for the Corporation of the City of Pickering does not support Schedule 6 of Bill 229 the Protect, Support and Recover from COVID-19 Act (Budget Measures 2020) and requests that: 1. The Province of Ontario repeal Schedule 6 of the Budget Measures Act (Bill 229) to enable continued consultations with conservation authorities, municipalities and the public; 2. The Province of Ontario respect the current conservation authority and municipal relationships; Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca 3. That the Province of Ontario embrace their long standing partnership with conservation authorities and provide them with the tools and financial resources they require to effectively implement their watershed management roll; 4. The Province of Ontario provide a longer transition period up to December 2022 for non-mandatory programs to enable coordination of conservation authority municipal budget processes; and 5. Copies of this Motion be forwarded to the Honourable Premier Doug Ford, Leaders of the Ontario Opposition Parties, Pickering-Uxbridge MPP Peter Bethlenfalvy, Ajax- Whitby MPP Rod Phillips, all GTHA MPPs, and Durham Regional Council. 13. By-laws 13.1 By-law 7799/20 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. [Refer to page 221 of the Executive Committee Agenda] 13.2 By-law 7800/20 Being a by-law to authorize the temporary borrowing of monies to meet the current and capital expenditures of the City of Pickering for the year 2021. [Refer to page 229 of the Executive Committee Agenda] 13.3 By-law 7801/20 134 Being a by-law to authorize Chestnut Hill Developments Recreation Complex – Lobby & Core Area Renovations – Construction project in the City of Pickering and the issuance of debentures in the amount of $5,600,000.00. [Refer to Item 11.2 CS 02-20] 13.4 By-law 7802/20 219 Council Meeting Agenda December 14, 2020 Electronic Meeting 7:00 pm For information related to accessibility requirements please contact: Committee Coordinator 905.420.4611 clerks@pickering.ca Being a by-law regarding Development Charges to amend By-law 7595/17, as amended by By-law 7727/19 to make certain revisions to the City’s development charges involving capital cost estimates and policies. [Refer to Item 11.6 FIN 19-20] 13.5 By-law 7803/20 230 Being a by-law to establish certain lands within the City of Pickering, Regional Municipality of Durham, as public highways. (Enterprise Gateway) 14. Other Business 15. Confirmation By-law 16. Adjournment Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm Present: Mayor David Ryan Councillors: D. Pickles Also Present: M. Carpino - Interim Chief Administrative Officer K. Bentley - Director, City Development & CBO P. Bigioni - Director, Corporate Services & City Solicitor B. Duffield - (Acting) Director, Community Services J. Eddy - Director, Human Resources J. Hagg - Fire Chief J. Flowers - CEO & Director of Libraries, Pickering Public Library R. Holborn - Director, Engineering Services F. Jadoon - Director, Economic Development & Strategic Projects S. Cassel - City Clerk C. Rose - Chief Planner R. Perera - Committee Coordinator K. Ashe M. Brenner S. Butt I. Cumming B. McLean 1. Roll Call The City Clerk certified that all Members of Council were present and participating electronically in accordance with By-law 7771/20. 2. Invocation Mayor Ryan called the meeting to order and led Council in the saying of the Invocation. 3. Indigenous Land Acknowledgment Statement Mayor Ryan read the Indigenous Land Acknowledgment Statement. 4. Disclosure of Interest No disclosures of interest were noted. - 1 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm 5.Adoption of Minutes Resolution # 456/20 Moved by Councillor Pickles Seconded by Councillor Cumming Council Minutes, October 26, 2020 Executive Committee Minutes, November 2, 2020 Planning & Development Committee Minutes, November 2, 2020 Special Council Minutes, November 16, 2020 Carried 6.Presentations There were no presentations. 7.Delegations 7.1 Patrick McNeil, Chair of the Board of Directors, Elexicon Corporation Lesley Gallinger, President & CEO, Elexicon Energy Karen Fisher, Interim President & CEO and Chair of the Board of Directors, Elexicon Group Re: Elexicon Merger Update Patrick McNeil, Chair of the Board of Directors, Elexicon Corporation, Lesley Gallinger, President & CEO, Elexicon Energy, and Karen Fisher, Interim President & CEO and Chair of the Board of Directors, Elexicon Group, joined the electronic meeting via audio connection, to provide an update on Elexicon Corporation’s first year of operation. Mr. McNeil, Ms. Gallinger, and Ms. Fisher referred to a PDF presentation document that was circulated to Members of Council prior to the meeting. Highlights of the presentation included: •the primary objectives of the merger including sustainable cash flows for municipal owners, mitigating future rate increases for customers, improving services to customers, strengthening partnerships with local businesses and communities, and investing in innovation and growth; •mitigation measures taken by the organization to address the financial implications of the COVID-19 pandemic including supporting customers, weekly updates to the Board and employees, curtailing expenditures, limiting hires, and extending the organization’s line of credit; - 2 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm • response and management of customers who are unable to pay their Elexicon bills; • focus on community relations though the Community Report which is distributed quarterly through the Mayor’s office and on the Elexicon website; • Elexicon Group’s growth model which is a combination of organic growth and exploiting expansion opportunities; and, • Elexicon Group’s focus on generating shareholder value and earnings provided through dividends over time, to supplement the LDC business model. A question and answer period ensued between Members of Council and Patrick McNeil, Lesley Gallinger, and Karen Fisher regarding: • the rational behind the deferral of dividends to shareholder municipalities and the current financial situation of Elexicon as it pertains to customers in arrears; • the Provincial COVID-19 Energy Assistance Program’s potential to outset the current 4 million in arrears, and whether the program could be applied retroactively; • whether the Elexicon Board would be reaching out to the Province to seek increased support; • whether the funding allocated by the Province through the COVID-19 Energy Assistance Program to assist residential and business owners in paying their bills had been fully expended; • whether the number of individuals and businesses applying for financial assistance through the COVID-19 Energy Assistance Program was a result of a lack of awareness or the qualifying criteria required by the Province to partake in the program; • challenges posed to shareholder municipalities in relation to budget planning processes in awaiting Elexicon’s decision regarding the deferral of dividends until the end of the 1st quarter of 2021; • the need for information from Ontario Energy Board to enable Elexicon to decide on the deferral of the dividends; • the cost to the taxpayers in relation to the rate stabilization support provided by the Province during the pandemic and the impact to Elexicon’s revenue business model; • the market rules requiring Elexicon to pay the full energy consumption cost to the energy producer regardless of payment from the end user to Elexicon; • whether adjusting the market rules so that the energy producer would incur 50% of the debt incurred by local energy companies, such as Elexicon, to alleviate some of the debt pressures from customer arrears; - 3 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm • the governing body that the Elexicon Energy Board is accountable to and whether the Board is appointed by the Province; • the breakdown of the $4 million in arrears in relation to commercial and residential customers; • whether the larger financial burden is due to the non-payments being more from businesses and whether the consumption occurs prior to the collection of fees; • the frequency in power outages and the related causes; • future plans to diversify the Elexicon Energy Board and the length of term for the Board; • whether Elexicon had returned to normal time of use rates; and, • the City’s willingness to assist in furthering the discussions with the Ontario Energy Board to fast-track the decision pertaining to dividends. 8. Correspondence 8.1 Corr. 51-20 David Crombie, Chair, Greenbelt Council Re: Regional Economic Roadmap for Recovery Resolution # 457/20 Moved by Councillor Pickles Seconded by Councillor Cumming That Corr. 51-20, from David Crombie, Chair, Greenbelt Council, dated October 22, 2020, regarding the Regional Economic Roadmap for Recovery, be received for information. Carried 8.2 Corr. 52-20 Kevin Narraway, Manager, Legislative Services/Deputy Clerk Town of Whitby Re: Region of Durham’s Potential Return to Modified Stage 2 COVID-19 Restrictions Resolution # 458/20 Moved by Councillor Pickles Seconded by Councillor Cumming That Corr. 52-20, from Kevin Narraway, Manager, Legislative Services/Deputy Clerk, Town of Whitby, dated October 27, 2020, regarding the Region of Durham’s - 4 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm Potential Return to Modified Stage 2 COVID-19 Restrictions, be received for information. Carried 8.3 Corr. 53-20 The Honourable Rod Phillips, Minister of Finance Ministry of Finance Re: 2021 Ontario Municipal Partnership Fund (OMPF) Allocations Resolution # 459/20 Moved by Councillor Pickles Seconded by Councillor Cumming That Corr. 53-20, from The Honourable Rod Phillips, Minister of Finance, dated October 29, 2020, regarding the 2021 Ontario Municipal Partnership Fund (OMPF) allocations, be received for information. Carried 8.4 Corr. 54-20 Ralph Walton, Regional Clerk The Regional Municipality of Durham Re: Natural Resources Canada Small Nuclear Reactor Action Plan 2020 (2020- EDT-9) Resolution # 460/20 Moved by Councillor McLean Seconded by Councillor Cumming That Corr. 54-20, from Ralph Walton, Regional Clerk, the Regional Municipality of Durham, dated October 29, 2020, regarding the Natural Resources Canada Small Nuclear Reactor Action Plan 2020 (2020-EDT-9), be endorsed. Carried 8.5 Corr. 55-20 Municipal Finance Officers’ Association of Ontario (MFOA) Re: Provincial Budget 2020: Ontario’s Action Plan: Protect, Support, Recover Members of Council inquired whether Staff would be providing a report to Council on the impact of the ramifications identified by MFOA as they relate to Pickering, with Marisa Carpino, Interim Chief Administrative Officer, advising that Staff would report back by the December 14, 2020 Council meeting. - 5 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm Resolution # 461/20 Moved by Councillor McLean Seconded by Councillor Cumming That Corr. 55-20, from the Municipal Finance Officers’ Association of Ontario (MFOA), dated November 5, 2020, regarding the Provincial Budget 2020: Ontario’s Action Plan: Protect, Support, Recover, be received for information. Carried 8.6 Corr. 56-20 Jennifer O'Connell Member of Parliament, Pickering-Uxbridge Re: Universal Broadband Fund (UBF) Members of Council inquired about the status of the ICON program and whether the Universal Broadband Fund (UBF) would help to move this forward. Paul Bigioni, Director, Corporate Services & City Solicitor, advised that staff are currently looking into the benefits of the new Federal funding. He noted that there was a rapid response stream announced as part of the grant funding and stated that this may assist in defraying or reducing the cost of the existing ICON application that was previously approved by Council in August. Resolution # 462/20 Moved by Councillor McLean Seconded by Councillor Pickles That Corr. 56-20, from Jennifer O'Connell, Member of Parliament, dated November 9, 2020, regarding the Universal Broadband Fund (UBF), be referred to Staff and that a report be brought forward to Council in February 2021 on the status of the ICON application and the UBF. Carried 8.7 Corr. 57-20 Stan Karwowski, Director, Finance & Treasurer City of Pickering Re: Civic Centre Actual Project Costs-to-Date Discussion and a question and answer period ensued between Members of Council and Marisa Carpino, Interim Chief Administrative Officer, regarding: - 6 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm • whether Staff would be updating Council in December on the costs incurred to date and expected future costs for the Project; • the current pause in the Project and the plans to bring forward the capital and operating costs of the City Centre, with a recommendation on how to move forward based on a financial funding strategy; • putting out a Request for Proposal (RFP) to hire an independent cost consultant to determine the full cost of the Project using the design work that had been completed to date with a report back to Council in the Spring of 2021 seeking approval to move forward; • reporting back on the full Project costs in the third quarter of 2021 and whether there were any expenses being incurred between now and when that report is brought forward to Council; • managing debt strategy as it relates to the proposed City Centre project due to the current unknown financial factors including zero revenue from the Pickering Casino, uncertainty regarding the dividends from Elexicon, and the proposed Development Charges; • whether the hiring of the independent cost consultant, to conduct a cost analysis for the City Centre project, would be the only outstanding expense for the proposed Project, and whether this RFP would be included in the 2021 Budget; • how the Project would be included in the 2021 Budget without knowing the full costs; and, • exploring provincial and federal funding opportunities available for projects that would kick start the economy, such as, the proposed City Centre project. Resolution # 463/20 Moved by Councillor McLean Seconded by Councillor Cumming That Corr. 57-20, from Stan Karwowski, Director, Finance & Treasurer, dated October 1, 2020, regarding the Civic Centre Actual Project Costs-to-Date, be received for information. Carried 8.8 Corr. 58-20 The Honourable Raymond Cho, Minister for Seniors and Accessibility Ministry for Seniors and Accessibility Re: Advancing Accessibility in Ontario: Improving Understanding and Awareness about Accessibility Resolution # 464/20 - 7 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm Moved by Councillor Brenner Seconded by Councillor Cumming 1. That Corr. 58-20, from The Honourable Raymond Cho, Minister for Seniors and Accessibility, dated November 3, 2020, regarding Advancing Accessibility in Ontario: Improving Understanding and Awareness about Accessibility, be received for information; and, 2. That Corr. 58-20 be referred to the Pickering Accessibility Advisory Committee for their review. Carried 9. Report EC 2020-08 of the Executive Committee held on November 2, 2020 9.1 Director, Corporate Services & City Solicitor, Report BYL 04-20 PetSmart Charities Adoption Partner Program - Approval to Sign Agreement Council Decision: 1. That the PetSmart Charities Adoption Partner Program agreement be approved; 2. That the attached PetSmart Charities Adoption Partner Agreement be executed on the City’s behalf by the Mayor and City Clerk; and, 3. That appropriate City of Pickering officials be authorized to take the actions necessary to implement the recommendations in this report. 9.2 Director, Engineering Services, Report ENG 05-20 Rotary Frenchman’s Bay West Park - Master Plan Update Council Decision: 1. That the Rotary Frenchman’s Bay West Park Master Plan Update as set out in Attachment #1 be endorsed by Council; 2. That City staff be directed to coordinate with the Toronto and Region Conservation Authority to prepare the detailed design in preparation for construction; - 8 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm 3. That City staff consider including funds in the 2021 Parks Capital Budget to complete the detailed design and implementation of the Master Plan; 4. That a copy of this report be forwarded to the Toronto and Region Conservation Authority for their information, and that they be advised of Council’s decision on this matter; and, 5. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. 9.3 Director, Engineering Services, Report ENG 12-20 Beachfront Park Rehabilitation & Needs Assessment - Work Plan Status Report Council Decision: 1. That Report ENG 12-20 regarding a Work Plan Status Report for Beachfront Park, as a follow-up to Report ENG 13-19 and in response to Resolutions #196/19 & 197/19, be received for information; 2. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report; and, 3. That Staff be directed to report back to the Executive Committee in March 2021, with the roll out plan for the public engagement process and a status update on the project. 9.4 Director, Finance & Treasurer, Report FIN 13-20 2021 Interim Levy and Interim Tax Instalment Due Dates Council Decision: 1. That an interim property tax levy be adopted for all realty property classes for 2021; 2. That the interim property tax levy instalment due dates be February 24 and April 28, 2021; 3. That the attached draft by-law, providing for the imposition of the taxes, be enacted; and, 4. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. 9.5 Director, Finance & Treasurer, Report FIN 14-20 - 9 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm 2020 Year End Audit (Interim) Council Decision: 1. That the Audit Service Plan as submitted by Deloitte LLP, set out in Attachment 1 to this report, be received for information; and, 2. That the Interim Chief Administrative Officer and the Director, Finance & Treasurer be authorized to sign the confirmation of change to the master services agreement on behalf of the City. Resolution # 465/20 Moved by Councillor Pickles Seconded by Councillor Butt That Report EC 2020-08 of the Executive Committee Meeting held on November 2, 2020 be adopted, save and except Item 9.6. Carried 9.6 Director, City Development & CBO, Report PLN 23-20 Street Naming Policy - Council Endorsement Members of Council inquired whether the font size for new street signs could be enlarged to address visual concerns when reading the signs. Kyle Bentley, Director, City Development & CBO, advised that Staff would look into the current sign standards and opportunities for improvement. Resolution # 466/20 Moved by Councillor Pickles Seconded by Councillor Butt 1. That Council endorse the Street Naming Policy, as set out in the revised Appendix I attached to the Memorandum from the Director, City Development & CBO, dated October 29, 2020, subject to minor revisions acceptable to the Director, City Development & CBO; and, 2. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Carried - 10 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm 10. Report PD 2020-08 of the Planning & Development Committee held on November 2, 2020 10.1 Director, City Development & CBO, Report PLN 22-20 Draft Plan of Subdivision Application SP-2019-02 Zoning By-law Amendment Application A 07/19 Oak Hill Developments Ltd. and White-Pine General Contractors Ltd. Lots 60 and 61, Plan 418 (467 and 471 Rosebank Road) Brief discussion ensued regarding the amendment to By-law 7793/20, included as Item 13.3 on the agenda, which was discussed at the November 2, 2020 Planning & Development Committee Meeting, noting that an amendment would be needed to Item 2 of the recommendation for PLN 22-20. Resolution # 467/20 Moved by Councillor Brenner Seconded by Councillor Pickles Council Decision: 1. That Draft Plan of Subdivision Application SP-2019-02, submitted by Oak Hill Developments Ltd. and White-Pine General Contractors Ltd., on lands being Lots 60 and 61, Plan 418, to establish a residential plan of subdivision consisting of 8 lots for detached dwellings as shown on Attachment #4 to Report PLN 22-20, and the implementing conditions of approval, as set out in Appendix I, be endorsed; 2. That Zoning By-law Amendment Application A 07/19, submitted by Oak Hill Developments Ltd. and White-Pine General Contractors Ltd., to implement Draft Plan of Subdivision SP 2019-02 on lands being Lots 60 and 61, Plan 418, be approved, and that the draft Zoning By-law Amendment as set out in Appendix II to Report PLN 22-20 be forwarded to Council for enactment; 3. That Amendment 8 to the Rosebank Neighbourhood Development Guidelines – Precinct No. 3, to allow an exception permitting minimum lot frontages of 12.2 metres for 4 lots fronting Gillmoss Road to implement Draft Plan of Subdivision SP-2019-02, be endorsed as set out in Appendix III; and, 4. That Informational Revision 27 to the Pickering Official Plan Rosebank, Neighbourhood Map 11, to delete the proposed new northerly extension of Dunn Crescent to intersect with the future easterly extension of Gillmoss Road, as set out in Appendix IV, be approved. - 11 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm Carried Later in the Meeting (See Following Motion) Resolution # 468/20 Moved by Councillor Ashe Seconded by Councillor Cumming That item 2 of the main motion be amended to strike out “as set out in Appendix II to Report PLN 22-20”. Carried The Main Motion, as Amended, was then Carried 11. Reports – New and Unfinished Business 11.1 Director, Engineering Services, Report ENG 13-20 Consulting Services for Detailed Design for the New Highway 401 Road Crossing to Connect Notion Road to Squires Beach Road Resolution # 469/20 Moved by Councillor Pickles Seconded by Councillor Cumming 1. That Council approve the hiring of AECOM Canada Ltd. for the Detailed Design Services of the new Highway 401 road crossing to connect Notion Road to Squires Beach Road in accordance with Purchasing Policy 10.03 (c) as the assignment has a value above $50,000.00 and a competitive process is not being followed, and is therefore subject to the additional approval of Council; 2. That the fee proposal dated November 6, 2020 submitted by AECOM Canada Ltd. for the Detailed Design Services for the new Highway 401 road crossing to connect Notion Road to Squires Beach Road in the amount of $3,284,320.14 (HST included) excluding provisional items be accepted; 3. That the total gross project cost $3,862,677.00 (HST included), including the proposal amount and other associated costs, and the total net project cost of $3,478,460.00 (net of HST rebate) be accepted; 4. That the Director, Finance & Treasurer be authorized to finance the estimated net project cost of $3,478,460.00 as follows: - 12 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm a) The sum of $1,000,000.00 as approved in the 2020 Development Projects (DC Funded) Capital Budget to be funded from a Third Party Contribution be increased to $1,391,384.00; b) The sum of $500,000.00 as approved in the 2020 Development Projects (DC Funded) Capital Budget to be funded from the DC Transportation Services Reserve Fund be increased to $1,600,092.00; c) The sum of $500,000.00 as approved in the 2020 Development Projects (DC Funded) Capital Budget to be funded from the Roads & Bridges Reserve Fund be revised to an Internal Loan in the amount of $486,000.00 for a term not exceeding two years, and the balance sum of $984.00 from property taxes; 5. That award of the proposal to AECOM Canada Ltd. be subject to the City of Pickering and Pickering Developments Inc. entering into a cost sharing agreement with respect to funding of the project; 6. That the appropriate City staff be authorized to execute a Professional Services Agreement between the City of Pickering and AECOM Canada Ltd. in a form satisfactory to the Director, Corporate Services & City Solicitor and Director, Finance & Treasurer; 7. That AECOM Canada Ltd. be approved, in principle, to provide construction administration services required to monitor and execute the construction contract with the approved contractor when a tender has been awarded, subject to review and acceptance of the scope of work and associated fee at that time; and, 8. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Carried 12. Motions and Notice of Motions There were no notices of motion. 13. By-laws 13.1 By-law 7792/20 - 13 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm Being a by-law for the collection of taxes and to establish the instalment due dates for the Interim Levy 2021. 13.2 By-law 7793/20 Being a By-law to amend Restricted Area (Zoning) By law 2511, as amended, to implement the Official Plan of the City of Pickering, Region of Durham, being Lots 60 and 61, Plan 418, City of Pickering. (A 07/19) 13.3 By-law 7794/20 Being a By-law to adopt Amendment 39 to the Official Plan for the City of Pickering. (OPA 18-002/P) 13.4 By-law 7795/20 Being a By-law to amend Schedule A of By-law 7362/14 appointing Inspectors. 13.5 By-law 7796/20 Being a By-law to amend By-law 7769/20 that assigned certain functions, duties and authorities to the Director, City Development, or designate. Resolution # 470/20 Moved by Councillor Butt Seconded by Councillor Cumming That By-law Nos. 7792/20 through 7796/20 be approved. Carried 14. Confidential Council – Public Report Mayor Ryan stated that prior to the Regular Council Meeting, an In-camera session was held at 6:00 p.m. in accordance with the provisions of the Municipal Act and Procedure By-law 7665/18 to hear a verbal update from the (Acting) Director, Community Services and Corporate Security Specialist regarding a Corporate Security Update. He further stated that Council also received a verbal update from the Interim CAO and Director, Economic Development & Strategic Projects regarding an update on a land purchase with Infrastructure Ontario within the Innovation Corridor and provided direction to Staff. Carried 14.1 Verbal Update from the Interim CAO and Director, Economic Development & Strategic Projects. - 14 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm Re: Update on Land Purchase with Infrastructure Ontario within the Innovation Corridor Resolution # 471/20 Moved by Councillor Cumming Seconded by Councillor Butt That the confidential recommendation considered at the In-Camera Session of Council, held at 6:00 pm on November 23, 2020, be approved. Carried 15. Other Business 15.1 Councillor McLean inquired about the beaver dams in Pine Creek and whether there would be a flood risk if the last dam were to remain until early spring. Brian Duffield, (Acting) Director, Community Services, advised that there would be a flood risk upstream if Pickering were to receive a 25 year storm and that Staff in Sustainability were exploring beaver mitigation measures. 15.2 Councillor Brenner inquired about the emergency funding provided to municipalities for COVID-19 and requested an update on the $1.9m received by the City and the breakdown of how those funds were being used. Marisa Carpino, Interim CAO, advised that she would follow up with staff regarding providing this information to Council. 15.3 Councillor Brenner gave notice that he would be bringing forward two Notices of Motion regarding Bill 229 as it related to changes to the Conservation Authority Act, and providing direction to Staff as part of the Planning Policy Review to incorporate the spirit and intent of the Williams Treaty and the Gun Shot Treaty. 16. Confirmation By-law By-law Number 7797/20 Councillor McLean, seconded by Councillor Pickles moved for leave to introduce a By- law of the City of Pickering to confirm the proceedings of November 23, 2020. Carried 17. Adjournment Moved by Councillor Ashe Seconded by Councillor Brenner - 15 - Council Meeting Minutes November 23, 2020 Electronic Meeting 7:00 pm That the meeting be adjourned. Carried The meeting adjourned at 8:29 pm. Dated this 23rd of November, 2020. David Ryan, Mayor Susan Cassel, City Clerk - 16 - Executive Committee Meeting Minutes December 7, 2020 Electronic Meeting – 2:00 pm Chair: Councillor McLean 1 Present: Mayor David Ryan – arrived at 2:50 pm Councillors: D. Pickles Also Present: M. Carpino - Interim Chief Administrative Officer K. Bentley - Director, City Development & CBO P. Bigioni - Director, Corporate Services & City Solicitor B. Duffield - (Acting) Director, Community Services J. Eddy - Director, Human Resources J. Hagg - Fire Chief R. Holborn - Director, Engineering Services F. Jadoon - Director, Economic Development & Strategic Projects S. Karwowski - Director, Finance & Treasurer S. Cassel - City Clerk C. Rose - Chief Planner J. Halsall - Manager, Budgets & Internal Audit K. Thompson - Manager, Municipal Law Enforcement Services T. Ryce - Supervisor, Cultural Services I. Marouchko - Senior Water Resources Engineer E. Martelluzzi - Planner II, Heritage R. Perera - Committee Coordinator K. Ashe M. Brenner S. Butt I. Cumming B. McLean 1. Roll Call The City Clerk certified that all Members of Council were present, with the exception of Mayor Ryan, and noted that all Members present were participating electronically in accordance with By-law 7771/20. 2. Disclosure of Interest Councillor McLean declared a conflict of interest under the Municipal Conflict of Interest Act, with respect to Item 5.8, Report PLN 31-20 - Heritage Property Tax Relief Program - 17 - Executive Committee Meeting Minutes December 7, 2020 Electronic Meeting – 2:00 pm Chair: Councillor McLean 2 and Implementing By-law, City of Pickering, as his son is the owner of a heritage home. Councillor McLean relinquished the Chair when this item was before the Committee and did not take part in the discussion or vote on this matter. 3. Statutory Public Meetings 3.1 Director, Finance & Treasurer, Report FIN 17-20 Statutory Public Meeting Regarding Development Charges Update Study A statutory public meeting was held in accordance with the Development Charges Act, 1997. Andrew Grunda, Principal, Watson & Associates Economists Ltd., joined the electronic meeting via audio connection to provide an overview of the 2020 Development Charges Update Study. Through the aid of a PowerPoint presentation, Mr. Grunda noted that the purpose of the proposed Development Charges by-law amendment was to reflect the recent amendments to the Development Charges Act made through the More Homes, More Choice Act, and the COVID-19 Economic Recovery Act, and to update the capital needs and capital cost estimates for transportation services, administration studies, parks and recreation services, and library services. Mr. Grunda provided information regarding the background of existing Development Charges By-laws, the City’s requirements under the Development Charges Act, an overview of the amendments to the City’s Development Charges By-law, and updates to the Development Charges By-law policies. A question and answer period ensued between Members of the Committee and Andrew Grunda regarding: • public consultation and the deadline for public comments for the proposed amendments to the City’s Development Charges By-law; • the dollar value resulting from the removal of the statutory 10 percent deduction; and, • the changes and differences in the costs that are now recoverable through development charges (DCs) as it pertains to the Youth & Seniors Centre, Performing Arts Centre, and New Central Library in the City Centre Project. No members of the public registered to speak to the matter. Discussion and a question and answer period ensued between Members of the Committee and Stan Karwowski, Director, Finance & Treasurer, regarding: - 18 - Executive Committee Meeting Minutes December 7, 2020 Electronic Meeting – 2:00 pm Chair: Councillor McLean 3 • the costs pertaining to the Youth & Seniors Centre being up to almost 100 percent recoverable through development charges growth, with minimal impact on the residential tax base; • the amount of time it would take to collect the development charges for the 50-storey high rise building in the City Centre to offset the City’s growth costs; • the amount of development charges that will be recoverable for the Arts Centre; • impacts to the Heritage Centre in Greenwood, as it relates to the DC changes, with a request that Mr. Karwowski provide a memo to Council, prior to the December 14th Council Meeting, with an update on the project and the increased funding available through the proposed development charges by-law; and, • comparisons between the City and neighbouring municipalities as it relates to debt per capita and how the new DC By-law would impact this. Recommendation: Moved by Councillor Pickles Seconded by Councillor Brenner 1. That Report FIN 17-20 of the Director, Finance & Treasurer be received; 2. That Council receive for information the City of Pickering – Development Charges (DC) Update Study prepared by Watson & Associates Economists Ltd. dated October 15, 2020 and Addendum to the DC Update Study dated November 2, 2020; 3. That all written submissions made at the December 7, 2020 Public Meeting or received in writing from the public by December 9, 2020 be referred to staff and to Watson & Associates Economists Ltd. for consideration in preparation of the final Development Charges recommendations and By- law for Council’s consideration on December 14, 2020; and, 4. That the appropriate City of Pickering officials be authorized to take the actions as indicated in this report. Carried 4. Delegations 4.1 David Steele Re: Report ENG 11-20 - 19 - Executive Committee Meeting Minutes December 7, 2020 Electronic Meeting – 2:00 pm Chair: Councillor McLean 4 Stormwater Management Facilities Asset Management Plan - Final Report July 2020 David Steele, Pickering Resident, joined the electronic meeting via audio connection, and referred to the priority list of Stormwater Management Facilities (SWMF) contained in Report ENG 11-20 that had been identified for reconstruction/retrofit and maintenance and the associated costs. Mr. Steele noted that the Report was missing the sediment contents of the SWMFs identified in the Report and that he would like to know this information. He noted that work is needed to update the SWMFs and requested that the City consider commencing work this year, noting the importance of the SWMF Plan as it related to Frenchman’s Bay. He further noted that the SWMFs identified in the Report for reconstruction/retrofit may be eligible for development charges. Mr. Steele stated that in the past, a water quality study was conducted on water sources leading to the Frenchman’s Bay, and asked that the City consider conducting a smaller study for comparison. Mr. Steele concluded his delegation by providing comments regarding the City Centre project and requested that the City consider conducting a five to ten year capital program to ensure that all development charges are not being allocated towards one single project. Richard Holborn, Director, Engineering Services, commented that the City is working on a number of projects pertaining to the Frenchman’s Bay, and noted that an update on the Frenchman’s Bay Master Plan was included in the 2021 Development Charges forecast. 5. Matters for Consideration 5.1 Director, Corporate Services & City Solicitor, Report BYL 05-20 Deferral of Implementation of Accessible Service Supplement Fees Vehicle for Hire By-law Recommendation: Moved by Councillor Pickles Seconded by Councillor Ashe 1. That Report BYL 05-20 respecting a deferral of the implementation of the Accessible Service Supplement enacted in the Vehicle for Hire By-law 7739/20 be received; 2. That the implementation and collection of the Vehicle for Hire Accessible Service Supplement be deferred until January 1, 2022; and, - 20 - Executive Committee Meeting Minutes December 7, 2020 Electronic Meeting – 2:00 pm Chair: Councillor McLean 5 3. That appropriate City of Pickering officials be authorized to take the actions necessary to implement the recommendations in this report. Carried 5.2 (Acting) Director, Community Services, Report CS 31-20 Cultural Strategic Plan - Mid-term Update Recommendation: Moved by Councillor Brenner Seconded by Councillor Ashe That CS 31-20, be referred back to staff for more internal collaboration with City Departments and the Pickering Public Library and that staff report back at the February 1, 2021 Executive Committee Meeting. Carried 5.3 Director, Engineering Services, Report ENG 11-20 Stormwater Management Facilities Asset Management Plan - Final Report July 2020 A question and answer period ensued between Members of the Committee and Staff regarding: • the maintenance costs for certain SWMFs being half the cost of reconstructing/retrofitting; • whether the introduction of new technology could lower costs pertaining to maintenance and reconstruction/retrofit; • the total number of stormwater ponds in Pickering; • whether staff were working with the Region and other municipalities to explore alternative stormwater management methods; • costs related to maintenance and managing existing infrastructure not being recovered through development charges as it does not pertain to new growth; • Report FIN 17-20 including a variety of capital projects and not just the City Centre project; • whether the SWMFs would be on the 2021 capital forecast and the timelines for conducting the work; • staff using the proposed endorsement of Report ENG 11-20 as a resource to create a capital program; - 21 - Executive Committee Meeting Minutes December 7, 2020 Electronic Meeting – 2:00 pm Chair: Councillor McLean 6 • staff commencing maintenance work in 2020 and 2021 on SWMFs having minor deficiencies and updating Council on work being conducted in 2020 and 2021; • whether drainage from Seaton communities could enter the retention ponds of existing communities; and, • SWMF issues pertaining to beaver activity and beaver mitigation measures for SWMFs. Recommendation: Moved by Councillor Brenner Seconded by Councillor Pickles 1. That the Stormwater Management Facilities Asset Management Plan, Final Report July 2020, prepared by The Municipal Infrastructure Group Ltd. a T.Y. LIN International Company be received for information; 2. That Council endorse the Stormwater Management Facilities Asset Management Plan to be used by staff as a resource document for identifying and planning maintenance projects for the Stormwater Management Facilities under the jurisdiction of the City of Pickering; 3. That staff be authorized to implement the recommendations within the Stormwater Management Facilities Asset Management Plan, subject to budget and further Council approval for the individual projects; and, 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Carried 5.4 Director, Engineering Services, Report ENG 14-20 Proposed All-way Stop Control, Pickering Parkway and Glenanna Road A question and answer period ensued between Members of the Committee and Richard Holborn, Director, Engineering Services, regarding: • the three-way stop being an interim safety measure pending the future installation of traffic signals once construction in the area is completed; • including signage in the area to alert drivers of the proposed three-way stop that would be installed; - 22 - Executive Committee Meeting Minutes December 7, 2020 Electronic Meeting – 2:00 pm Chair: Councillor McLean 7 • the timelines of the traffic studies that were conducted and the traffic counts pertaining to the vehicle movement on Pickering Parkway at Glenanna and Valleyfarm; • the location of the proposed stop sign on Pickering Parkway and whether there would be potential for collisions; and, • the intersection meeting the requirements, based on provincial warrants, for a traffic signal. Recommendation: Moved by Councillor Pickles Seconded by Councillor Ashe 1. That the attached draft by-law be enacted to amend Schedule "7" to By-law 6604/05 to provide for the regulation of stop signs on highways or parts of highways under the jurisdiction of The Corporation of the City of Pickering, specifically to address the proposed installation of an all-way stop control at the intersection of Pickering Parkway and Glenanna Road; and, 2. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Carried 5.5 Director, Finance & Treasurer, Report FIN 15-20 2021 Interim Spending Authority A brief question and answer period ensued between Members of the Committee and Stan Karwowski, Director, Finance & Treasurer, regarding: • provisions in the Report that allow the City to finance the day-to-day operations until such time the budget is approved by Council; • the provision for temporary borrowing as identified in Report FIN 16-20 being only for emergency situations and Council being communicated of emergency spending if required; • the yearly interim spending authority and temporary borrowing by-law, presented in Reports FIN 15-20 and FIN 16-20, being part of an annual administrative process that is undertaken each year; and, • the temporary borrowing limit of $63 million for capital purposes for 2021 being allocated for a wide variety of capital projects. Recommendation: - 23 - Executive Committee Meeting Minutes December 7, 2020 Electronic Meeting – 2:00 pm Chair: Councillor McLean 8 Moved by Mayor Ryan Seconded by Councillor Butt 1. That the 2021 Interim Operating Expenditures be approved at 50 per cent of the prior year’s budget, including adjustments, as contained in Attachment 1, pending approval of the 2021 Current Budget by Council; and, 2. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Carried 5.6 Director, Finance & Treasurer, Report FIN 16-20 2021 Temporary Borrowing By-law Recommendation: Moved by Mayor Ryan Seconded by Councillor Butt 1. That the temporary borrowing limit of $55 million be established to meet 2021 current expenditures pending receipt of taxes and other revenues for the period of January 1 to September 30, 2021 inclusive, and $27 million thereafter until December 31, 2021; 2. That the temporary borrowing limit for capital purposes for 2021 be established at $63 million; 3. That the attached draft by-law providing for the temporary borrowing of monies be enacted; and, 4. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Carried 5.7 Director, Corporate Services & City Solicitor, Report LEG 10-20 Retail Sale of Cannabis in Pickering A question and answer period ensued between Members of the Committee and Paul Bigioni, Director, Corporate Services & City Solicitor, regarding: - 24 - Executive Committee Meeting Minutes December 7, 2020 Electronic Meeting – 2:00 pm Chair: Councillor McLean 9 • the statistics identified in Report LEG 10-20 finding that non-cannabis users are in support of the retail sale of cannabis; • next steps and the timelines for the establishment of retail sale of cannabis in Pickering and whether the associated Provincial permissions and/or restrictions would apply to retailing of medical cannabis; • whether the initial provincial funding provided to municipalities for opting into the retail of cannabis was still available; • the reasoning pertaining to the delay between the end of the public consultation period and presenting a recommendation report to Council with Mr. Bigioni stating that time was needed to measure and review neighbouring municipalities on any enforcement issues they may have experienced from the retail sale of cannabis; • the number of municipalities in Ontario permitting the retail sale of cannabis; • the role the City would play in private retail of cannabis; and, • despite the survey including questions on the use of alcohol in parks, the Report’s intent was focused on the approval of retail sale of cannabis in Pickering and did not include any recommendations pertaining to alcohol consumption in public parks. Recommendation: Moved by Councillor Brenner Seconded by Councillor Butt 1. That the City of Pickering hereby opts in to allow cannabis retail stores within Pickering; 2. That a copy of these recommendations be forwarded to the Alcohol and Gaming Commission of Ontario ("AGCO"); and, 3. That the appropriate City of Pickering officials be authorized to take such actions as are necessary to implement the recommendations in this report. Carried 5.8 Director, City Development & CBO, Report PLN 31-20 Heritage Property Tax Relief Program and Implementing By-law City of Pickering Having previously declared a conflict of interest, Councillor McLean relinquished the Chair, and did not take part in the discussion or vote on this item. - 25 - Executive Committee Meeting Minutes December 7, 2020 Electronic Meeting – 2:00 pm Chair: Councillor McLean 10 Councillor Pickles assumed the Chair. Discussion ensued regarding the timing of this Program, the benefits to heritage home owners specifically, and referring the report back to staff as many people are experiencing financial hardships due to COVID-19 and struggling to pay their taxes. Recommendation: Moved by Councillor Brenner Seconded by Councillor Butt 1. That the Heritage Property Tax Relief Program and By-law be approved and the implementing by-law to provide property tax relief to eligible heritage properties in the City of Pickering, as set out in Appendix I to Report PLN 31- 20, be enacted by Council; 2. That the City Clerk give notice of this by-law to the Minister of Finance and the Region of Durham within 30 days of the passing of the by-law; and, 3. That the appropriate City of Pickering officials be authorized to take actions as necessary to implement the recommendations in this report. Note: The disposition of this matter was determined through the referral motion below Moved by Councillor Cumming Seconded by Councillor Ashe That PLN 31-20, be referred back to staff to report back to Council on the implementation of the Heritage Property Tax Relief Program at such time that the COVID-19 Pandemic is under control. Carried 6. Other Business 6.1 Councillor Brenner noted that the City of Markham and City of Vaughan had received recognition for their budget processes from the Government Finance Officers Association (GFOA), and requested that staff conduct research on the budget processes undertaken by other municipalities to implement a more user friendly budgetary process, that was simple to follow, for future budget years commencing for the 2022 budget. - 26 - Executive Committee Meeting Minutes December 7, 2020 Electronic Meeting – 2:00 pm Chair: Councillor McLean 11 Councillor McLean resumed the Chair. 6.2 Councillor Brenner requested that staff provide an overview of the differences between the current financial system and the new SAP system, highlighting the benefits and how it will be more user friendly. 7. Adjournment Moved by Councillor Ashe Seconded by Councillor Cumming That the meeting be adjourned. Carried The meeting adjourned at 3:56 pm. - 27 - Special Council Meeting Minutes December 7, 2020 Electronic Meeting Immediately following the Executive Committee Meeting Present: Mayor David Ryan Councillors: D. Pickles Also Present: M. Carpino - Interim Chief Administrative Officer K. Bentley - Director, City Development & CBO P. Bigioni - Director, Corporate Services & City Solicitor B. Duffield - (Acting) Director, Community Services J. Eddy - Director, Human Resources J. Hagg - Fire Chief R. Holborn - Director, Engineering Services F. Jadoon - Director, Economic Development & Strategic Projects S. Karwowski - Director, Finance & Treasurer S. Cassel - City Clerk C. Rose - Chief Planner C. Hodge - Senior Coordinator, Development Liaison R. Perera - Committee Coordinator K. Ashe M. Brenner S. Butt I. Cumming B. McLean 1. Roll Call The City Clerk certified that all Members of Council were present and participating electronically in accordance with By-law 7771/20. 2. Disclosure of Interest No disclosures of interest were noted. 3. Delegations There were no delegations. 4. Matters for Consideration 4.1 Director, City Development & CBO, Report PLN 26-20 - 28 - Special Council Meeting Minutes December 7, 2020 Electronic Meeting Immediately following the Executive Committee Meeting Location Agreement for Temporary Use of City Property at 3800 Sideline 32 - Film Production – Temporary Backlot Construction Discussion and a question and answer period ensued between Members of Council and Kyle Bentley, Director, City Development & CBO, regarding: • work done on the site to date prior to the approval of the Agreement by Council; • the ability for the City’s Chief Building Official to issue a Permission to Enter Agreement, which was issued in early November, 2020, to allow Jack Reacher TV Productions Ltd. to carry out site preparation work and road construction to provide for direct access to the site; • the time sensitivity of the matter so that the Production Company could proceed, noting that the Permission to Enter Agreement was set to expire at the end of 2020; • whether notification of the work being carried out was provided to neighboring properties, and whether a communication strategy was in place to engage the 43 homes within a one kilometre radius of the site; • the need for staff to conduct a site visit to ensure that the work completed to date was in accordance with the Permission to Enter Agreement; • costs to the City for works done on the site and whether the City would be reimbursed for those works; • the work done on the site being temporary and the City’s ability through the Location Agreement to retain the gravel access road and set constructions at the end of the production term; • whether the revenues from the lease would be utilized for cost recovery, with Mr. Bentley noting that the lease does not cover man hours to build the road, or the materials utilized, and that the Production Company would be responsible for all costs associated with the work on the site; and, • whether there would be an opportunity for hydro to be provided by Elexicon onto the site and whether that may benefit a future park on this site. Resolution # 472/20 Moved by Councillor Cumming Seconded by Councillor Ashe 1. That Council approve the draft Location Agreement for the Temporary Use of City Property at 3800 Sideline 32, between the City of Pickering and Jack Reacher TV Productions Ltd. (Jack Reacher) for the period December 7, 2020 to September 30, 2021, as set out in Appendix I to Report PLN 26- 20; - 29 - Special Council Meeting Minutes December 7, 2020 Electronic Meeting Immediately following the Executive Committee Meeting 2. That the Mayor and City Clerk be authorized to execute the Location Agreement between the City of Pickering and Jack Reacher in the form as appended to this report subject to revisions as may be acceptable to the Interim Chief Administrative Officer, the City Solicitor and the Director, City Development & CBO; and, 3. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Carried 5. Confirmation By-law By-law Number 7798/20 Councillor Pickles, seconded by Councillor McLean moved for leave to introduce a by-law of the City of Pickering to confirm the proceedings of December 7, 2020. Carried 6. Adjournment Moved by Councillor Brenner Seconded by Councillor Butt That the meeting be adjourned. Carried The meeting adjourned at 4:18 pm. Dated this 7th of December, 2020. David Ryan, Mayor Susan Cassel, City Clerk - 30 - Planning & Development Committee Meeting Minutes December 7, 2020 Electronic Meeting – 7:00 pm Chair: Councillor Pickles 1 Present: Mayor David Ryan Councillors: D. Pickles Also Present: M. Carpino - Interim Chief Administrative Officer K. Bentley - Director, City Development & CBO P. Bigioni - Director, Corporate Services & City Solicitor S. Cassel - City Clerk C. Rose - Chief Planner N. Surti - Manager, Development Review & Urban Design T. Bal - Planner Il C. Morrison - Planner Il R. Perera - Committee Coordinator K. Ashe M. Brenner S. Butt I. Cumming B. McLean 1. Roll Call The City Clerk certified that all Members of Council were present and participating electronically in accordance with By-law 7771/20. 2. Disclosure of Interest No disclosures of interest were noted. 3. Statutory Public Meetings Councillor Pickles, Chair, gave an outline of the requirements for a Statutory Public Meeting under the Planning Act. He outlined the notification process procedures and also noted that if a person or public body does not make oral or written submissions to the City before the By-law is passed, that person or public body are not entitled to appeal the decision of City Council to the Local Planning Appeal Tribunal (LPAT), and may not be entitled to be added as a party to the hearing unless, in the opinion of LPAT, there are reasonable grounds to do so. - 31 - Planning & Development Committee Meeting Minutes December 7, 2020 Electronic Meeting – 7:00 pm Chair: Councillor Pickles 2 Catherine Rose, Chief Planner, appeared before the Committee to act as facilitator for the Statutory Public Meeting portion of the meeting, explaining the process for discussion purposes as well as the order of speakers. 3.1 Information Report No. 16-20 Official Plan Amendment OPA 20-005/P Zoning By-law Amendment Application A 09/20 Mattamy (Seaton) Limited Part of Lots 25 and 26, Concession 3, Now Parts 1 and 2, 40R-24268 and Part of Lot 3, 40R-29614 (1034 Reflection Place) A statutory public meeting was held under the Planning Act, for the purpose of informing the public with respect to the above-noted application. Tanjot Bal, Planner II, provided the Committee with an overview of Official Plan Amendment Application OPA 20-005/P, and Zoning By-law Amendment Application A 09/20. Through the aid of a PowerPoint presentation, Ms. Bal outlined the location plan, and the proposed development, noting that the applications propose to amend the City’s Official Plan and rezone subject lands to permit a residential condominium development consisting of 28 back-to-back stacked townhouses and 50 townhouses accessed from an internal private road. Ms. Bal outlined the planning and design comments identified by Staff for further review and consideration. Duncan Webster, Mattamy Homes, joined the electronic meeting via audio connection and noted that Andrew Scott, Mattamy Homes, and Elizabeth Howson, Macaulay Shiomi Howson Ltd. were also present via audio connection. Through the aid of a PowerPoint presentation, Mr. Scott provided a brief overview of the applications, noting a number of proposed sustainable features. Ancil London, Moonlight Crescent, joined the electronic meeting via audio connection, and questioned whether the subject lands had been initially designated for development, noting the natural heritage areas within Seaton. He inquired about the options available for Pickering residents who had bought residences elsewhere in Seaton, without prior knowledge of the City plans to develop the subject lands, should they wish to be in a more prominent location. A question and answer period ensued between Members of the Committee, City Staff, Duncan Webster, Andrew Scott, and Elizabeth Howson, regarding: - 32 - Planning & Development Committee Meeting Minutes December 7, 2020 Electronic Meeting – 7:00 pm Chair: Councillor Pickles 3 • the timelines for the proposed development and whether a premium would be applied to the home prices given the inclusion of several sustainable features; • the deciding factor in building stacked townhouses on the subject lands as opposed to a high-rise building; • whether the Condominium Corporation would be responsible for the ongoing maintenance of the proposed sustainable features; • whether a provision would be included within the Zoning By-law Amendment to ensure that all homeowners maintain their properties in accordance with the standards of the Condominium Corporation; • whether there would be extra visitor parking spaces provided to the residents in Block B, elsewhere on the site, as there would be no visitor parking spaces located in Block B due to its close proximity to the bee enclosure; • whether research had been conducted regarding the effect of the proposed biodiverse watershed systems in prolonging the life of the watershed; • whether the proposed initiative to provide residents with a jar of honey from the on-site bee enclosure would be provided annually; • the current deficiency of 13 visitor parking spaces to support the different forms of housing in the proposed development; and, • the applicant’s proposal to downzone the site from 203 units to 78 units and the need to make up this difference in Thomson’s Corners so that the density targets can be realized in another area of Seaton. 4. Delegations 4.1 Paul White, Fairport Beach Neighbourhood Association Re: Report PLN 28-20 Zoning By-law Amendment Application A 10/18 City Initiated: Rotary Frenchman’s Bay West Park Paul White, Fairport Beach Neighbourhood Association, joined the electronic meeting via audio connection in support of Report PLN 28-20. Mr. White noted that when the Association sold their property to the Toronto and Region Conservation Authority (TRCA) in 1993, they had signed an Agreement to ensure that a dedicated room and signage is provided to the Association should the TRCA construct a community building adjacent to the parkland. Mr. White concluded his delegation by stating he was in agreement with the designation of open space and expressed concern regarding the uncertainty of development, even in designated spaces, with the recent use of Minister Zoning Orders under the current Provincial Government. - 33 - Planning & Development Committee Meeting Minutes December 7, 2020 Electronic Meeting – 7:00 pm Chair: Councillor Pickles 4 4.2 Paul White, Fairport Beach Neighbourhood Association Re: Report PLN 29-20 Official Plan Amendment OPA 19-004/P Zoning By-law Amendment Application A 14/19 Draft Plan of Subdivision Application SP-2019-04 Draft Plan of Condominium Application CP-2019-05 Katanna Oklahoma LP Part of Lot 28, Broken Front Concession Range 3, Now Part of Part 1, 40R-2401 (755 Oklahoma Drive) Paul White, Fairport Beach Neighbourhood Association, joined the electronic meeting via audio connection and noted his support of the revised submission by Katanna Oklahoma LP. Mr. White stated that he was awaiting the implementation of radar access to the speed enforcement sign at Eyer Drive and Oklahoma Drive and commented on the peculiar nature of the intersection, noting its close proximity to the entrance of Fairport Beach Public School. Mr. White concluded his delegation by requesting that Staff consider the concerns regarding the intersection of Eyer Drive and Oklahoma Drive during the development. 4.3 Michael Vani, Senior Planner, Weston Consulting Re: Report PLN 30-20 Zoning By-law Amendment Application A 01/20 Universal City Six Developments Inc. Part of Lot 21, Concession 1 South, Now Part 2, 40R-18785 (1010 Sandy Beach Road) Michael Vani, Senior Planner, Weston Consulting, joined the electronic meeting via audio connection and stated that Weston Consulting had worked alongside Staff to address the comments received at the statutory public meeting. Mr. Vani noted that he was in attendance to respond to any questions raised. 4.4 Bryce Jordan, GHD Jeff Greene, Katanna Oklahoma LP Re: Report PLN 29-20 Official Plan Amendment OPA 19-004/P Zoning By-law Amendment Application A 14/19 Draft Plan of Subdivision Application SP-2019-04 Draft Plan of Condominium Application CP-2019-05 Katanna Oklahoma LP Part of Lot 28, Broken Front Concession Range 3, Now Part of Part 1, 40R-2401 (755 Oklahoma Drive) - 34 - Planning & Development Committee Meeting Minutes December 7, 2020 Electronic Meeting – 7:00 pm Chair: Councillor Pickles 5 Bryce Jordan, GHD, joined the electronic meeting via audio connection and stated that he was in attendance to respond to any questions raised. Mr. Jordan noted that the safest access point into the property was through Eyer Drive and while it was a complicated intersection, he believed that the revised submission had addressed these concerns. 5. Planning & Development Reports 5.1 Director, City Development & CBO, Report PLN 24-20 City Initiated Official Plan Amendment: Ecosystem Compensation Recommended Amendment 35 to the Pickering Official Plan File: OPA 19-003/P Brief discussion ensued regarding the Memo from the Director, City Development & CBO, dated December 7, 2020, that was circulated to Members of the Committee prior to the meeting. It was noted that staff were requesting that Items 5.1, PLN 24-20, and 5.2, PLN 25-20, be referred back so that staff may undertake a review of written submissions that had been received on these matters after the publication of the staff report and agenda. Recommendation: Moved by Mayor Ryan Seconded by Councillor Cumming That Report PLN 24-20 be referred back to staff to undertake a proper review of the submissions and to consult with Legal Services and TRCA regarding any potential changes to the subject wording, and that staff report back to the Planning & Development Committee Meeting in February, 2021. Carried 5.2 Director, City Development & CBO, Report PLN 25-20 Memorandum of Understanding between the City of Pickering and the Toronto and Region Conservation Authority regarding the administration and collection of fees and technical guidance in relation to the TRCA’s Guideline for Determining Ecosystem Compensation, June 2018 Recommendation: Moved by Mayor Ryan Seconded by Councillor Cumming - 35 - Planning & Development Committee Meeting Minutes December 7, 2020 Electronic Meeting – 7:00 pm Chair: Councillor Pickles 6 That Report PLN 25-20 be referred back to staff to undertake a proper review of the submissions and to consult with Legal Services and TRCA regarding any potential changes to the subject wording, and that staff report back to the Planning & Development Committee Meeting in February, 2021. Carried 5.3 Director, City Development & CBO, Report PLN 28-20 Zoning By-law Amendment Application A 10/18 City Initiated: Rotary Frenchman’s Bay West Park Recommendation: Moved by Councillor Brenner Seconded by Councillor Ashe That City Initiated Zoning By-law Amendment Application A 10/18 to zone lands within Rotary Frenchman’s Bay West Park from “R4” – Detached Dwelling Fourth Density and “G” – Greenbelt to “OS” – Open Space, be approved and that the draft Zoning By-law Amendment as set out in Appendix I to Report PLN 28-20, be enacted by Council. Carried 5.4 Director, City Development & CBO, Report PLN 29-20 Official Plan Amendment OPA 19-004/P Zoning By-law Amendment Application A 14/19 Draft Plan of Subdivision Application SP-2019-04 Draft Plan of Condominium Application CP-2019-05 Katanna Oklahoma LP Part of Lot 28, Broken Front Concession Range 3, Now Part of Part 1, 40R-2401 (755 Oklahoma Drive) Brief discussion ensued between Members of the Committee and Nilesh Surti, Manager, Development Review & Urban Design, regarding the proposed development alleviating traffic concerns that have been experienced with the church and daycare that are located on the site and how the proposed private parkette would provide for a focal point upon entering the Fairport Beach community. Recommendation: Moved by Councillor Ashe - 36 - Planning & Development Committee Meeting Minutes December 7, 2020 Electronic Meeting – 7:00 pm Chair: Councillor Pickles 7 Seconded by Councillor Brenner 1. That Official Plan Amendment Application OPA 19-004/P, submitted by Katanna Oklahoma LP, to re-designate the lands located on the southeast corner of Eyer Drive and Oklahoma Drive from “Urban Residential Areas – Low Density Areas” to “Urban Residential Areas – Medium Density Areas” to allow a residential common element condominium development be approved, and that the draft by-law to adopt Amendment 41 to the Pickering Official Plan as set out in Appendix I to Report PLN 29-20 be forwarded to Council for enactment; 2. That Zoning By-law Amendment Application A 14/19, submitted by Katanna Oklahoma LP, to facilitate a residential common element condominium development consisting of 27 townhouse units on the lands located at the southeast corner of Eyer Drive and Oklahoma Drive, be endorsed subject to the provisions contained in Appendix II to Report PLN 29-20, and that staff be authorized to finalize and forward an implementing Zoning By-law to Council for enactment; and, 3. That Draft Plan of Subdivision Application SP-2019-04, submitted by Katanna Oklahoma LP, to establish a single development block to facilitate a common element condominium, and a block for a road widening, as shown on Attachment #6 to Report PLN 29-20, and the implementing conditions of approval, as set out in Appendix III, be endorsed. Carried 5.5 Director, City Development & CBO, Report PLN 30-20 Zoning By-law Amendment Application A 01/20 Universal City Six Developments Inc. Part of Lot 21, Concession 1 South, Now Part 2, 40R-18785 (1010 Sandy Beach Road) Members of the Committee referred to a Memo provided by the Director, City Development & CBO, dated December 4, 2020, that was circulated to Members of the Committee prior to the meeting, which outlined required revisions to the zoning by-law, included as Appendix 1 to Report PLN 30-20. Recommendation: Moved by Councillor Ashe Seconded by Councillor Cumming - 37 - Planning & Development Committee Meeting Minutes December 7, 2020 Electronic Meeting – 7:00 pm Chair: Councillor Pickles 8 That Zoning By-law Amendment Application A 01/20, submitted by Universal City Six Developments Inc., to permit a high-density residential condominium building, be approved, and that the implementing Zoning By-law Amendment be forwarded to Council for enactment. Carried 6. Other Business There was no other business. 7. Adjournment Moved by Councillor Ashe Seconded by Councillor McLean That the meeting be adjourned. Carried The meeting adjourned at 8:20 pm. - 38 - MUNICIPALITY OF MARMORA AND LAKE PO BOX 459, 12 Bursthall Street, Marmora, ON, K0K 2M0 PH. 613-472-2629 FAX 613-472-5330 www.marmoraandlake.ca City of Belleville Corporate Services Department 169 Front Street, Belleville ON K8N 2Y8 SENT BY EMAIL November 25, 2020 Re: Council Resolution – Accessibility for Ontarians with Disabilities Act –Website support Further to the Meeting of Council on November 17, 2020 Council of the Corporation of the Municipality of Marmora and Lake passed the following motion: MOTION2020NOV17-260 Moved by Councillor Bernie Donaldson Seconded by Councillor Ron Derry WHEREAS Section 14(4) of 0. Reg 191/11 under the Accessibility for Ontarians with Disabilities Act requires designated public sector organizations to conform to WCAG 2.0 Level AA by January 1, 2021; and WHEREAS the City remains committed to the provision of accessible goods and services; and WHEREAS the City provides accommodations to meet any stated accessibility need, where possible; and WHEREAS the declared pandemic, COVID-19, has impacted the finances and other resources of the City; and WHEREAS the Accessibility for Ontarians with Disabilities Act contemplates the need to consider technical or economic considerations in the implementation of Accessibility Standards; BE IT THEREFORE RESOLVED THAT the Corporation of the Municipality of Marmora and Lake requests that the Province of Ontario consider providing funding support and training resources to municipalities to meet these compliance standards; and Corr. 59-20 - 39 - MUNICIPALITY OF MARMORA AND LAKE PO BOX 459, 12 Bursthall Street, Marmora, ON, K0K 2M0 PH. 613-472-2629 FAX 613-472-5330 www.marmoraandlake.ca THAT this resolution is forwarded to the Premier of the Province of Ontario, Prince Edward-Hastings M.P.P., Todd Smith, Hastings -Lennox & Addington M.P.P., Daryl Kramp, the Association of Municipalities of Ontario and all Municipalities within the Province of Ontario. FURTHER THAT the Municipality of Marmora and Lake supports the resolution passed by the City of Belleville. Carried I trust this is the information you require, however, should additional information or clarification be required do not hesitate to contact me at your convenience. Sincerely, Jennifer Bennett, Deputy Clerk 613-472-2629 ext. 2232 jbennett@marmoraandlake.ca cc: The Honourable Doug Ford Todd Smith, MPP Prince Edward-Hastings Daryl Kramp, MPP Hastings – Lennox & Addington Association of Municipalities of Ontario All Municipalities within the Province of Ontario - 40 - If you require this information in an accessible format, please contact 1-800-372-1102 extension 2097. November 26, 2020 The Honourable Steve Clark Minister of Municipal Affairs and Housing 777 Bay Street, 17th Floor Toronto, ON M5G 2E5 Dear Minister Clark: RE: Envision Durham – Framework for a New Regional Official Plan (2020-P-24), Our File: D12 Council of the Region of Durham, at its meeting held on November 25, 2020, adopted the following recommendations of the Planning & Economic Development Committee: “A) That Regional Council endorse the framework for the new Regional Official Plan as outlined in Report #2020-P-24 of the Commissioner of Planning and Economic Development; and B)That a copy of Report #2020-P-24 be forwarded to Durham’s area municipalities, conservation authorities, the Envision Durham Interested Parties List and the Ministry of Municipal Affairs and Housing.” Please find enclosed a copy of Report #2020-P-24 for your information. Ralph Walton Ralph Walton, Regional Clerk/Director of Legislative Services RW/tf c: Please see attached list The Regional Municipality of Durham Corporate Services Department Legislative Services 605 Rossland Rd. E. Level 1 PO Box 623 Whitby, ON L1N 6A3 Canada 905-668-7711 1-800-372-1102 Fax: 905-668-9963 durham.ca Don Beaton, BCom, M.P.A. Commissioner of Corporate Services Corr. 60-20 - 41 - Page 2 of 2 c: M. Harris, Acting Manager, Community Planning and Development, Ministry of Municipal Affairs and Housing A. Harras, Acting Clerk, Town of Ajax B. Jamieson, Clerk, Township of Brock A. Greentree, Clerk, Municipality of Clarington M. Medeiros, Clerk, City of Oshawa S. Cassel, Clerk, City of Pickering J.P. Newman, Clerk, Township of Scugog D. Leroux, Clerk, Township of Uxbridge C. Harris, Clerk, Town of Whitby C. Darling, Chief Administrative Officer, Central Lake Ontario Conservation Authority L. Laliberte, CAO/Secretary-Treasurer, Ganaraska Region Conservation Authority M. Majchrowski, Chief Administrative Officer, Kawartha Conservation M. Walters, Chief Administrative Officer, Lake Simcoe Region Conservation Authority J. MacKenzie, Chief Executive Officer, Toronto & Region Conservation Authority Envision Durham Interested Parties B. Bridgeman, Commissioner of Planning and Economic Development - 42 - If this information is required in an accessible format, please contact 1-800-372-1102 ext. 2564 The Regional Municipality of Durham Report To: Planning and Economic Development Committee From: Commissioner of Planning and Economic Development Report: #2020-P-24 Date: November 3, 2020 Subject: Envision Durham – Framework for a New Regional Official Plan Recommendation: That the Planning and Economic Development Committee recommends to Regional Council: A) That Regional Council endorse the framework for the new Regional Official Plan as outlined in this report; and B) That a copy of Report #2020-P-24 be forwarded to Durham’s area municipalities, conservation authorities, the Envision Durham Interested Parties List and the Ministry of Municipal Affairs and Housing. Report: 1. Purpose 1.1 The purpose of this report is to provide an update on Envision Durham, the Region’s Municipal Comprehensive Review (MCR), and introduce the framework for the new Regional Official Plan. Envision Durham will replace the current Regional Official Plan (ROP) by establishing a progressive and forward-looking planning vision for the Region to 2051. A new framework, with a streamlined structure and approach will support a new and compelling ROP. - 43 - Report #2020-P-24 Page 2 of 7 2. Previous Reports and Decisions 2.1 Envision Durham is a multi-year project which has been the subject of several reports to Council as illustrated below in Figure 1. Recent activities have included: • Receiving, cataloguing and examining feedback received through the discussion paper submissions; • Undertaking policy reviews and analyses in preparation for upcoming proposed policy directions; and • Examining and preparing policies and delineations for proposed Major Transit Station Areas, to be provided as a standalone amendment for public review and comment in early 2021. Figure 1 – Envision Durham stages and reporting milestones 3. A New Regional Official Plan Framework – Need for Change 3.1 The framework of the current ROP dates back to the early 1990s, which has its roots in the structure of the 1976 ROP. 3.2 It is appropriate that the current ROP be repealed and replaced with a new ROP that will implement contemporary land use planning policies, new and updated policies contained in the PPS and the provincial plans which apply to Durham, such as the Growth Plan, the Greenbelt Plan, the Oak Ridges Moraine Conservation Plan and the Lake Simcoe Protection Plan. - 44 - Report #2020-P-24 Page 3 of 7 3.3 A new framework and vision will support a well-defined structure of urban areas and rural settlements, a system of connected environmental features, extensive and productive agricultural areas, a variety of open spaces and a comprehensive, integrated and multi-modal transportation network. 4. Guiding Principles and Desired Outcomes 4.1 The following guiding principles will help shape the new ROP: • Progressive– contemporary, compelling and forward-thinking in both subject matter and delivery. • Streamlined– avoiding redundancy while providing meaningful policy direction on matters of provincial and Regional interest, the ROP will be efficient in structure and content while providing appropriate depth. • Accessible–intuitive and user-friendly, the ROP will be clear and easier to read by a wide variety of audiences. 4.2 In addition to these three guiding principles, the new ROP will: • Anticipate Change. The ROP will plan for a population of 1.3 million people and 460,000 jobs over the next 30 years. The form of development will not be the same as was experienced over the last 30 years, and the pace and timing of development can never be fully predicted. The new ROP will direct growth to appropriate locations while protecting important environmental features from development. • Focus on Results. The new ROP will establish meaningful performance indicators, so that progress on achieving intended outcomes can be identified, measured and reported on. • Have a Strong On-line Presence. There is a need to modernize the look and feel of the ROP to one that is more accessible for online viewing (including online mapping), is visually pleasing, includes high quality graphics, provides call-out explanations and incorporates other features to make it more useful in an on-line world. • Articulate Meaningful Regional Priorities. Rather than simply reiterating or administering provincial policy, the ROP will articulate strategic Regional priorities. This would include building upon the vision and goals of the Durham Region Strategic Plan, 2020-2024 while enabling detailed land use planning policies and designations through area municipal official plans, as appropriate. - 45 - Report #2020-P-24 Page 4 of 7 5. Public Opinion Survey 5.1 In early 2019, a Public Opinion Survey was undertaken where participants provided input on some of the most important land use planning issues in the region today and over the next 30 years. 5.2 The survey reveals a desire for greater balance amongst broad objectives, including: • Increased job opportunities and overall economic prosperity; • Healthy communities that provide a variety of supports, services and affordable housing options; • Livable urban areas that preserve lands for greenspace and recreation by shifting from sprawl to more sustainable growth patterns; • Resilient built and natural environments ready for adaptation and mitigation against the effects of climate change; • Protected rural landscapes with strong agricultural roots; and • Transportation networks that support and promote a range of modes, including active transportation and enhanced transit. When considered together, the priorities identified by residents foster a complete community where our residents want to live, work, play, grow and invest. 6. Proposed Framework 6.1 In addition to broad strategic directions, ambitious goals, pragmatic objectives, and action-based policies, the new ROP will be founded on a strong vision for the region’s future. The proposed framework for the new ROP is illustrated in Figure 2 below. Figure 2 – Illustrating a new ROP framework - 46 - Report #2020-P-24 Page 5 of 7 6.2 The new ROP will incorporate a regional vision presenting Durham as a “community of communities”–diverse, distinct and connected. Staff will work towards developing a broad regional vision that embodies public and stakeholder input. 6.3 Seven Strategic Directions will serve as chapters to the new ROP. These directions have been prepared based on over 25 years of experience with the existing ROP, informed by public feedback received to-date and aligned with the broader goals of the Regional Strategic Plan. They are intended present balanced, aspirational, outcome-oriented themes, reflective of the Region’s diverse characteristics: • Prosperous Economy • Healthy Communities • Supportive Infrastructure • Vibrant Urban System • Thriving Rural System • Protected Greenlands System • Connected Transportation System 6.4 Goals, objectives and policies will be introduced through proposed policy directions to be released through 2021. 6.5 The new ROP should continue to support the essential elements valued most by Durham residents (e.g. access to natural areas, waterfronts, clean air, an abundance of recreational opportunities, protected farmlands, historic downtowns, etc.) while managing the growth and development that will continue to transform Durham over the next 30 years. 6.6 For consistency and clarity of language, proposed objectives will begin with one of three verbs of intention, namely: “Support”, “Promote” or “Ensure”. • Support–where the Region has little control over outcomes and will employ tactics to support conditions (e.g. coordinate, guide, monitor, study, research, investigate); • Promote–where the Region has moderate control over outcomes and will actively influence a particular result (e.g. encourage, maintain, improve, develop, evaluate, review, identify, update); and - 47 - Report #2020-P-24 Page 6 of 7 • Ensure–where the Region has greatest control over outcomes and expects to achieve results through direct actions (require, provide, protect, preserve, establish, delineate, conduct, implement, amend, prepare, adopt). In addition to creating a consistent structure, this approach helps signal the relative degree of influence the Region has over a particular outcome. 6.7 Policy statements will begin with action verbs to give clear direction and convey a sense of imperative. 7. Relationship to Strategic Plan 7.1 This report aligns with/addresses the following strategic goals and priorities in the Durham Region Strategic Plan: a. Environmental Sustainability • Protect, preserve and restore the natural environment including greenspaces, waterways, parks, trails and farmlands; • Demonstrate leadership in sustainability and addressing climate change; and • Expand sustainable and active transportation. b. Community Vitality • Revitalize existing neighbourhoods and build complete communities that are walkable, well-connected, and have a mix of attainable housing; and • Build a healthy, inclusive, age-friendly community where everyone feels a sense of belonging. c. Economic Prosperity • Position Durham Region as the location of choice for business; • Enhance communication and transportation networks to better connect people and move goods more effectively; and • Provide a supportive environment for agriculture and agri-food industries. d. Social Investment • Revitalize community housing and improve housing choice, affordability and sustainability. - 48 - Report #2020-P-24 Page 7 of 7 e. Service Excellence • Demonstrate commitment to continuous quality improvement and communicating results. 8. Next Steps 8.1 In early 2021, staff will seek authorization to consult on proposed policy directions informed by best practice reviews, research, public engagement and feedback received during Stages 1 and 2 of the Envision Durham process. 8.2 Concurrent work is being completed through the Growth Management Study (i.e. Land Needs Assessment), as well as advancing a standalone Major Transit Station Area Regional Official Plan Amendment. 8.3 The timeframe for completing Envision Durham and submitting it to the Province is July 1, 2022. Ongoing changes to Provincial Policy have impacted the ability of all GGH Regions to complete their MCRs by the prescribed conformity date. Regional staff will continue to take the steps necessary to meet this deadline. 8.4 It is recommended that a copy of this report be forwarded to Durham’s area municipalities, conservation authorities, the Envision Durham Interested Parties List and the Ministry of Municipal Affairs and Housing. Respectfully submitted, Original signed by Brian Bridgeman, MCIP, RPP Commissioner of Planning and Economic Development Recommended for Presentation to Committee Original signed by Elaine C. Baxter-Trahair Chief Administrative Officer - 49 - Town of Whitby 575 Rossland Road East Whitby, ON L1N 2M8 905.430.4300 whitby.ca November 25, 2020 Via Email: Honourable Doug Ford Premier of Ontario premier@ontario.ca Re: Correspondence # 2020-887 received by C. Harris, Town Clerk, from Central Lake Ontario Conservation Authority (CLOCA) regarding Bill 229, Protect, Support and Recover from COVID -19 Act - Schedule 6 - Conservation Authorities Act Please be advised that at a meeting held on November 23, 2020, the Council of the Town of Whitby adopted the following as Resolution # 232-20: Whereas the Province has introduced Bill 229, Protect, Support and Recover from COVID 19 Act including Schedule 6 – Conservation Authorities Act; and, Whereas the proposed Bill 229 introduces a number of changes and new sections that could remove and/or significantly hinder the role of conservation authorities in regulating development, the permit appeal process and engaging in the review and appeal of planning applications; and, Whereas the Town of Whitby values and relies on the natural habitats and water resources within its jurisdiction for the health and well-being of residents; values the conservation authority’s work to prevent and manage the impacts of flooding and other natural hazards; and values the conservation authority’s work to ensure safe drinking water amongst other matters. Now Therefore be it Resolved: 1.That the Mayor and Council of the Town of Whitby endorse and support the request of CLOCA’s Board of Directors to remove Schedule 6 from Bill 229; and, 2.That the Clerk send a copy of this resolution to the Premier, Minister of Environment, Conservation and Parks, the Minister of Natural Resources and Forestry, the Minister of Municipal Affairs and Housing, the Minister of Finance, MPP Lorne Coe, Regional Chair John Henry and local municipalities in the Region of Durham. Corr. 61-20 - 50 - Kevin Narraway Manager of Legislative Services/Deputy Clerk Copy: Honourable Jeff Yurek, Minister of Environment, Conservation and Parks - jeff.yurek@pc.ola.org Honourable John Yakabuski, Minister of Natural Resources and Forestry - john.yakabuski@pc.ola.org Honourable Steve Clark, Minister of Municipal Affairs and Housing - steve.clark@pc.ola.org Honourable Rod Phillips, Minister of Finance - rod.phillips@pc.ola.org Lorne Coe, M.P.P. - lorne.coe@pc.ola.org John Henry, Regional Chair - chair@durham.ca N. Cooper, Director of Legislative and Information services, Town of Ajax – clerks@ajax.ca A. Greentree, Clerk, Municipality of Clarington - clerks@clarington.net M. Medeiros, Clerk, City of Oshawa - clerks@oshawa.ca S. Cassel, Clerk, City of Pic kering - clerks@pickering.ca J. Newman, Clerk, Township of Scugog - jnewman@scugog.ca D. Leroux, Clerk, Township of Uxbridge - dleroux@town.uxbridge.on.ca - 51 - 1 November 30, 2020 AMO Policy Update – Bill 229, Schedule 6 (CA Act) Proposed Amendments Conservation Authorities Act Proposed Amendments – Schedule 6, Bill 229, Protect, Support and Recover from COVID-19 Act (Budget Measures), 2020 AMO President, Graydon Smith, wrote to the Premier last week, and today has made a submission to the Standing Committee on Finance and Economic Affairs asking that Schedule 6 of Bill 229 be withdrawn so that matters of concern can be resolved. The changes proposed in Schedule 6 are raising alarm for many municipal leaders, and others, about how the proposed amendments can be implemented and how these changes would improve conservation authority effectiveness and efficiencies. Of significant concern is the creation of an apparent conflict between the fiduciary duty of Conservation Authority Board members and the proposed amendment requiring board members to act on behalf of their respective municipal councils. The submission also seems to provide the potential to bypass the local development approval process, resulting in the loss of local scientific analysis. Other amendments open the door to possible reductions in user fees (which are designed to recoup costs). It also addresses the removal of the (un-proclaimed) section giving conservation authorities the power to issue stop work orders. The power for conservation authorities to issue stop work orders is needed to harmonize municipal and conservation authority enforcement actions on illegal dumping. Tremendous effort has been put forward by municipal governments to find a collective path forward that addresses certain issues and bolsters the ability to protect the Corr. 62-20 - 52 - 2 environment in a meaningful way. Municipal leaders were looking for needed Conservation Authorities Act refinements, not this proposed wholesale change. AMO’s COVID-19 Resources page is being updated continually so you can find critical information in one place. Please send any of your municipally related pandemic questions to covid19@amo.on.ca. *Disclaimer: The Association of Municipalities of Ontario (AMO) is unable to provide any warranty regarding the accuracy or completeness of third-party submissions. Distribution of these items does not imply an endorsement of the views, information or services mentioned. Please consider the environment before printing this. Association of Municipalities of Ontario 200 University Ave. Suite 801,Toronto ON Canada M5H 3C6 Wish to Adjust your AMO Communication Preferences ? Click Here - 53 - Report to Council Report Number: FIN 18-20 Date: December 14, 2020 From: Stan Karwowski Director, Finance & Treasurer Subject: 2019 Year End Audit Recommendation: 1. That the Report to Council on the 2019 Audit as submitted by Deloitte LLP (Deloitte) be received for information; and 2. That the 2019 draft Audited Consolidated Financial Statements for the City of Pickering be approved. Executive Summary: Attached to this report is the auditor’s Report to Council on the 2019 audit and the draft Audited Consolidated Financial Statements for the year ended December 31, 2019. 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. The auditor did not identify any significant deficiencies during the audit to formally report to Council. ______________________________________________________________________________ Financial Implications: The City’s financial position is healthy and strong and the City is able to meet its current financial commitments and in the future. It should also be noted that on page 10 of Deloitte’s Report to Council (Attachment 1), the auditor has reported that “the City is compliant with the provincially imposed debt limits as at December 31, 2019.” ______________________________________________________________________________ Discussion: On March 11, 2020, the World Health Organization declared the COVID-19 outbreak as a pandemic. In response to Provincial direction, all City facilities were shut down as of March 16, 2020. Since then, measures were put in place which limited City staff working on site as well as limited access by external consultants in order to reduce the spread of the virus. As a result, the City audit was delayed and Deloitte’s audit team had to work remotely in order to complete the audit. This delayed the 2019 Financial Statements not being presented until now. The audit of the consolidated financial statements for the year ended Decem ber 31, 2019 has now been completed. The auditor’s Report to Council is included as Attachment 1. This Report, prepared by Deloitte, summarizes its findings from the December 31, 2019 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 - 54 - FIN 18-20 December 14, 2020 Subject: 2019 Year End Audit Page 2 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 provide d 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. The draft Audited Consolidated Financial Statements, for the year ended December 31, 2019, 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 Elexicon Corporation (formerly Veridian Corporation) is accounted for on a modified equity basis, which means the City includes its share of Elexicon’s income or loss in the Consolidated Financial Statements. Due to the amalgamation of Veridian Corporation with Whitby Hydro Electric Corporation effective April 1, 2019, the change in valuation of the investment has also been reflected in the 2019 Financial Statements. Attachments: 1. Auditor’s Report to Council on the 2019 Audit 2. 2019 Draft Audited Consolidated Financial Statements Prepared By: Approved/Endorsed By: Original Signed By: Original Signed By: Kristine Senior, CPA, CA Stan Karwowski, MBA, CPA, CMA Manager, Accounting Services Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Interim Chief Administrative Officer - 55 - The Corporation of the City of Pickering | Table of contents 00 The Corporation of the City of Pickering Report to Council on the 2019 Audit For presentation on December 14, 2020 Attachment #1 to Report #FIN 18-20- 56 - Dear Council Members: 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”) and the financial statements of related City entities for the 2019 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 presented on November 4, 2019. This report is intended solely for the information and use of the 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, Chartered Professional Accountants Licensed Public Accountants Deloitte LLP 400 Applewood Crescent Suite 500 Vaughan ON L4K 0C3 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca December 3, 2020 Private and confidential To the Members of Council The Corporation of the City of Pickering 1 The Esplanade Pickering ON L1V 6K7 Report on audited annual financial statements - 57 - The Corporation of the City of Pickering | Table of contents i © Deloitte LLP and affiliated entities. Table of contents Our audits explained 2 Areas of audit risk 5 Significant accounting practices, judgments and estimates 7 Other reportable matters 9 Appendix 1 – Communication requirements 11 Appendix 2 – Independence letter 13 Appendix 3 – Draft management representation letter 14 - 58 - The Corporation of the City of Pickering | Our audits explained 2 © Deloitte LLP and affiliated entities. Our audits explained This report summarizes the main findings arising from our audits. Audit scope and terms of engagement We have been engaged to perform the audits of the City’s, Library’s, and Trust Funds’ Financial Statements as at, and for the year ended, December 31, 2019 (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 for Professional Services dated October 17, 2019. Areas of audit risk Through our risk assessment process, we have identified the audit risks. These areas of risks 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 levels are based on professional judgment and was determined as follows: Consolidated financial statements for the City – approximately 3% of consolidated 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. Scope and terms of engagementMaterialityAreas of audit risk- 59 - The Corporation of the City of Pickering | Our audits explained 3 © Deloitte LLP and affiliated entities. Status and outstanding matters We expect to be in a position to render our Independent Auditor’s Reports on the financial statements of the City, the Library Board, and the Trust Funds following their approval, and the completion of the following outstanding audit procedures: Receipt of minor documentation items Receipt of signed management representations letters Receipt of legal responses, and Update of our subsequent events procedures. Uncorrected misstatements No uncorrected misstatements were identified. Going concern Management has completed its assessment of the ability of the City, the Library Board and the Trust Funds to continue as a going concern, taking into consideration the impacts of COVID-19 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, the Library Board’s or the Trust Funds’ ability to continue as a going concern. We agree with management’s assessment. Internal controls During the course of our audits, we examined certain of the accounting procedures and key internal controls related to the financial reporting processes at the City, the Library Board and the Trust Funds. As a result of this examination, we did not identify any significant deficiencies in internal control. 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. Status and outstanding mattersGoing concernInternal controlsUncorrected misstatementsUncorrected disclosure misstatements- 60 - The Corporation of the City of Pickering | Our audits explained 4 © Deloitte LLP and affiliated entities. 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 7 and 8 for further details. Conclusion In accordance with Canadian GAAS, our audits were designed to enable us to express an opinion on 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 unmodified Independent Auditor’s Reports on the financial statements of the City, Library Board and Trust Funds for the year ended December 31, 2019 once the outstanding items, referred to previously in this report, are completed satisfactorily and the financial statements are approved. Fraud riskSignificant accounting practices, judgments and estimatesIndependenceConclusion- 61 - The Corporation of the City of Pickering | Areas of audit risk 5 © Deloitte LLP and affiliated entities. Areas of audit risk Revenue recognition* Significant audit risk Our audit response Audit results Canadian GAAS includes the presumption of a fraud risk involving improper revenue recognition. (Revenue/deferred revenue). Certain revenue streams are a presumed area of significant 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 We performed substantive testing to determine if restricted contributions (i.e., development charges), and government transfers/grants had been recognized appropriately. (Revenue vs. deferred revenue). We obtained sufficient audit evidence in this area and are satisfied with the results of audit procedures performed. Management override of controls* Significant audit risk Our audit response Audit results Under Canadian GAAS, it is the responsibility of the management, with the oversight of those charged with governance, to place a strong emphasis on fraud prevention and detection. Oversight by those charged with governance includes considering the potential for override of controls or other inappropriate influence over the financial reporting process. Management override of controls is present in all entities. It is a risk of material misstatement resulting from fraud and therefore is considered as a significant risk. 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, identified using manual techniques. Our procedures did not indicate any evidence of management override of controls. *These areas were identified as areas of significant risk, as required by Canadian Auditing Standards. - 62 - The Corporation of the City of Pickering | Areas of audit risk 6 © Deloitte LLP and affiliated entities. Merger of Veridian Corporation and Whitby Hydro Energy Corporation during fiscal 2019 and the City’s interest in Elexicon Corporation as at December 31, 2019 Audit risk Our audit response Audit results On April 1, 2019, Veridian Corporation and Whitby Hydro Energy Corporation amalgamated to form Elexicon Corporation, in which the City owns a 27.88% interest. There is a risk that the amalgamation transaction, including the City’s investment in Elexicon Corporation and any promissory notes outstanding associated with this investment, have not been properly accounted for or disclosed in the financial statements for the fiscal year ending December 31, 2019. Reviewed the merger agreements to understand the structure of the transaction and assessed the impact on the accounting in the City’s consolidated Financial Statements. Reviewed the legacy promissory notes previously issued to Veridian Corporation (that were transferred into Elexicon Corporation on formation) and ensured they have been properly accounted for. Ensured that the City’s interest in Elexicon Corporation has been properly disclosed in the financial statements. We obtained sufficient audit evidence in this area and are satisfied with the results of audit procedures performed. Implementation of new financial system Audit risk Our audit response Audit results The City is in the process of implementing a new financial system, SAP, which is expected to go live during fiscal 2020. Given the complexity associated with such a significant undertaking and the impact on numerous City departments, proper planning is critical to ensure implementation success and the proper conversion and migration of financial data. We obtained an understanding of the project scope for the systems implementation through discussion with Finance and IT management and assessed the implications on our audit strategy. We obtained an understanding of the City’s data conversion and migration plans from the current to the new system and assessed the impact on the extent of testing required. We discussed with management that the key considerations and audit trail, as part of a typical systems integration, have been factored into the project plan. We formulated our preliminary systems and data conversion testing plan. Our discussions with management indicated that the implementation of the new financial system has been delayed to 2021, due to the impacts of COVID-19. As communicated in the 2020 audit service plan presented on November 2, 2020, in conjunction with the 2020 audit, Deloitte will update its understanding of the project scope, data conversion and migration plans. We will formulate our preliminary systems and data conversion testing plan for the 2021 audit. - 63 - The Corporation of the City of Pickering | Significant accounting practices, judgments and estimates 7 © Deloitte LLP and affiliated entities. 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 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 City 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 judgments 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 fiscal 2017, management completed a preliminary draft capital management plan (CMP), resulting in the adjustment of useful lives for many tangible capital assets. At that time, management updated the useful lives for many of its tangible capital assets to reflect the best estimate of useful lives at the time; however, this had not been updated for all tangible capital assets in the City’s subledger, which resulted in an uncorrected misstatement of $1.27 million for the fiscal 2017 audit and $920K for the fiscal 2018 audit. In the current year, management made progress towards the update of useful lives; however, some assets were still amortized based on legacy useful life information. The impact of this is immaterial for fiscal 2019. 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. - 64 - The Corporation of the City of Pickering | Significant accounting practices, judgments and estimates 8 © Deloitte LLP and affiliated entities. Significant accounting estimates include: 2019 2018 Post-employment benefits liability $6,871,681 $6,260,194 WSIB benefits liability $1,968,663 $1,917,179 Allowance for doubtful accounts $5,000 $5,000 Provision for property tax assessment appeals $1,447,381 $1,330,418 - 65 - The Corporation of the City of Pickering | Other reportable matters 9 © Deloitte LLP and affiliated entities. 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 With the exception of the additional audit considerations arising as a result of the COVID-19 pandemic described below, the audit was conducted in accordance with our audit 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. COVID-19 pandemic considerations On March 11, 2020, the World Health Organization characterized the outbreak of a strain of the novel coronavirus (“COVID-19”) as a pandemic which has resulted in a serious of public health and emergency measures that have been put in place to combat the spread of the virus. The duration and impact of COVID-19 is unknown at this time and it is not possible to reliably estimate the impact that the length and severity of these developments will have on the financial results of the City in future periods. The following audit procedures were performed to address this situation as it relates to the 2019 audit: - Enquiry of the City’s management regarding the impact of this situation on the financial results or future financial results, such as: collectability of amounts receivable, valuation of investments and forecasted revenue and expenses for future periods. - Considered the effect of recent events on our risk assessment and planned audit procedures. The aforementioned did not result in changes to the risk assessment nor changes to planned audit procedures. Significant difficulties encountered in performing the audit Due to the COVID-19 physical distancing measures, the year-end audit evidence was provided electronically as the audit team worked remotely. We experienced some delays in the receipt of requested support electronically from management, which resulted in delays related to audit timing. Related party transactions Related party transactions and 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. - 66 - The Corporation of the City of Pickering | Other reportable matters 10 © Deloitte LLP and affiliated entities. Comment Consultation with other accountants Management has informed us that the City, the Library Board and the Trust Funds 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. In addition, the City is compliant with the provincially imposed debt limits as at December 31, 2019. 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, other than COVID-19, as disclosed in Note 20 to the City’s financial statements, we are not aware of any significant subsequent events that would require adjustment or disclosure in the financial statements as at December 31, 2019. - 67 - The Corporation of the City of Pickering | Appendix 1 – Communication requirements 11 © Deloitte LLP and affiliated entities. Appendix 1 – Communication requirements The table below summarizes our communication requirements under Canadian GAAS. Required communication Comments Audit service plan 1. Our responsibilities under Canadian GAAS, including forming and expressing an opinion on the financial statements Master Services Agreement dated October 17, 2019 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 4, 2019 We received the reporting requested from the independent auditor of Elexicon 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 responding to the risk of fraud and the internal control that management has established to mitigate these risks Covered when presenting the Audit service plan 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 pages 7 and 8 9. Alternative treatments for accounting policies and practices that have been discussed with management during the current audit period Nothing of significance 10. Matters related to going concern None noted 11. Management judgments and accounting estimates See pages 7 and 8 - 68 - The Corporation of the City of Pickering | Appendix 1 – Communication requirements 12 © Deloitte LLP and affiliated entities. Required communication Comments 12. Significant difficulties, if any, encountered during the audit None 13. Material written communications between management and us, including management representation letters Management representation letter is 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 accountants and about which we have concerns We are not aware of any such consultations 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 financial statements No significant deficiencies noted 20. Uncorrected misstatements and disclosure items None noted 21. Any significant matters arising during the audit in connection with the City’s related parties None noted - 69 - The Corporation of the City of Pickering | Appendix 2 – Independence letter 13 © Deloitte LLP and affiliated entities. Appendix 2 – Independence letter - 70 - Deloitte LLP 400 Applewood Crescent Suite 500 Vaughan ON L4K 0C3 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca December 3, 2020 Private and confidential The Members of Council The Corporation of the City of Pickering 1 The Esplanade Pickering ON L1V 6K7 Dear Council Members, 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, 2019. 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 21, 2019, the date of our last letter. Deloitte provided the following non-audit services between May 21, 2019 and December 3, 2020: Soccer Facility Analysis Service Delivery Review 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 21, 2019 to December 3, 2020. - 71 - The Corporation of the City of Pickering December 3, 2020 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 December 3, 2020. This letter is intended solely for the information and use of the Council, management, and others within the City and is not intended to be and should not be used for any other purposes. Yours truly, Chartered Professional Accountants Licensed Public Accountants - 72 - The Corporation of the City of Pickering | Appendix 3 – Draft management representation letter 14 © Deloitte LLP and affiliated entities. Appendix 3 – Draft management representation letter Draft- 73 - Dear Ms. Colavecchia: 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 of Pickering (the “City” or “we” or “us”) as of and for the year ended December 31, 2019, the notes to the consolidated financial statements and a summary of significant accounting policies (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, and cash flows of the City in accordance with Public Sector Accounting Standards (“PSAS”). Certain representations in this letter are described as being limited to matters that are material. Items are considered to be material if they, individually or in the aggregate, could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. 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 engagement letter between the City and Deloitte dated October 17, 2019 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, 2019 and the results of its operations and 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 City. No events have occurred subsequent to December 31, 2019 that require adjustment to the estimates and disclosures included in the Financial Statements. [City letterhead] December 14, 2020 Deloitte LLP 400 Applewood Crescent Suite 500 Vaughan ON L4K 0C3 Subject: Consolidated financial statements of The Corporation of the City of Pickering for the year ended December 31, 2019 Draft- 74 - Deloitte LLP December 14, 2020 Page 2 There are no changes in management’s method of determining significant estimates in the current year. 3.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. The Financial Statements have been approved in accordance with our process to finalize financial statements. 4.We have completed our review of events after December 31, 2019 and up to the date of this letter. 5.The Financial Statements are free of material errors and omissions. Internal controls 6.We acknowledge our responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud and error. 7.We have disclosed to you all known deficiencies in the design or operation of internal control over financial reporting identified as part of our evaluation, including separately disclosing to you all such deficiencies that we believe to be significant deficiencies in internal control over financial reporting. 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. Information provided 8.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; c.Unrestricted access to persons within the City from whom you determined it necessary to obtain audit evidence; and, d.Unrestricted access to all minutes of the meetings of Council and committees of Council, or summaries of actions of recent meetings for which minutes have not yet been prepared. All significant Coundil and committee actions are included in the summaries. 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 City 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.Draft- 75 - Deloitte LLP December 14, 2020 Page 3 12.There have been no communications with regulatory agencies concerning actual or potential noncompliance with or deficiencies in financial reporting practices. There are also no known or possible instances of non-compliance with the requirements of regulatory or governmental authorities. 13.We have disclosed to you the identities of the City’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. Independence matters For purposes of the following paragraphs, “Deloitte” shall mean Deloitte LLP and Deloitte Touche Tohmatsu Limited, including related member firms and affiliates. 14.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 City Council. 15.We have adhered to all regulatory requirements regarding the provision of non-audit services by Deloitte to the City in accordance with applicable laws, regulations and rules that apply to the City, including pre-approval requirements, as applicable. 16.We have ensured that all services performed by Deloitte with respect to this engagement have been pre-approved by the Executive Committee of City Council in accordance with its established approval policies and procedures including the City’s procurement policies. Other matters 17.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. Except where otherwise stated below, immaterial matters less than $125,000 collectively are not considered to be exceptions that require disclosure for the purpose of the following representations. This amount is not necessarily indicative of amounts that would require adjustment to or disclosure in the Financial Statements. 18.All transactions have been properly recorded in the accounting records and are reflected in the Financial Statements. 19.The City has identified all related parties in accordance with Section PS 2200, Related Party Disclosures (“PS 2200”). Management has made the appropriate disclosures with respect to its related party transactions in accordance with PS 2200. This assessment is based on all relevant factors, including those listed in para. 16 of PS2200. 20.There are no instances of identified or suspected noncompliance with laws and regulations. 21.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.Draft- 76 - Deloitte LLP December 14, 2020 Page 4 22.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. 23.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. 24.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. 25.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. Communications with taxation and regulatory agencies 26.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. Work of management’s experts 27.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. Loans and receivables 28.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 29.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 30.We have disclosed to you all correspondence relating to government transfers that the City has had with the funding body.Draft- 77 - Deloitte LLP December 14, 2020 Page 5 31.We have assessed the eligibility criteria and determined that the City is an eligible recipient for the government transfers received. 32.We have assessed the stipulations attached with the funding and have recognized the revenue in accordance with meeting the stipulations required. 33.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 34.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 35.Tangible capital assets have been recorded properly and consistently according to the standards in Section PS 3150, Tangible Capital Assets. 36.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. 37.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 38.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. Government Business Enterprises 39.The City has appropriately classified its investments in Elexicon as a Government Business Enterprise. With regard to the City’s investment in Elexicon, 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.Draft- 78 - Deloitte LLP December 14, 2020 Page 6 Liabilities for contaminated sites 40.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. Yours truly, The Corporation of the City of Pickering Stan Karwowski Director of Finance and Treasurer Marisa Carpino Interim Chief Administrative Officer Draft- 79 - Consolidated financial statements of The Corporation of the City of Pickering December 31, 2019 DraftAttachment #2 to Report #FIN 18-20 - 80 - 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 7–29 Draft- 81 - Independent Auditor’s Report To the Members of Council of The Corporation of the City of Pickering Opinion We have audited the consolidated financial statements of The Corporation of the City of Pickering (the “City”), which comprise the consolidated statement of financial position as at December 31, 2019, and the consolidated statements of operations, change in net financial assets and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies (collectively referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the City as at December 31, 2019, and the results of its operations, changes in net financial assets, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards (“PSAS”). Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards (“Canadian GAAS”). Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are independent of the City in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with PSAS, 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. In preparing the financial statements, management is responsible for assessing the City’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the City or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the City’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian GAAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Deloitte LLP 400 Applewood Crescent Suite 500 Vaughan ON L4K 0C3 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca Draft- 82 - As part of an audit in accordance with Canadian GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.  Obtain an understanding of internal control relevant to the audit 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 City’s internal control.  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.  Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the City’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the City to cease to continue as a going concern.  Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.  Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the City to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Chartered Professional Accountants Licensed Public Accountants December 14, 2020 Draft- 83 - The Corporation of the City of Pickering Consolidated statement of financial position As at December 31, 2019 2019 2018 Notes $$ Financial assets Cash and cash equivalents 109,398,651 100,619,531 Investments 3 67,962,213 78,380,565 Taxes receivable 20,714,593 19,340,620 Accounts receivable 4,612,282 4,192,551 Note receivable 17 3,255,916 3,530,086 Investment in government business enterprise 4 (c)68,264,803 56,516,836 Promissory notes receivable 5 25,069,000 25,069,000 Land held for resale 10(v)— 4,144,903 299,277,458 291,794,092 Liabilities Accounts payable and accrued liabilities 26,038,475 32,564,636 Other current liabilities 170,507 1,300,332 Deferred revenue 6 84,272,006 77,482,928 Long-term liabilities 9 30,819,986 29,418,973 Post-employment benefit liability 8 (a)6,871,681 6,260,194 WSIB benefit liabilities 8 (b)1,968,663 1,917,179 150,141,318 148,944,242 Net financial assets 149,136,140 142,849,850 Non-financial assets Tangible capital assets 10 273,099,664 259,879,354 Prepaid expenses 2,033,298 231,462 Inventory 484,538 372,227 275,617,500 260,483,043 Accumulated surplus 11 424,753,640 403,332,893 The accompanying notes are an integral part of the consolidated financial statements. Approved by the Board - _______________________________, Director _______________________________, Director Page 3Draft- 84 - The Corporation of the City of Pickering Consolidated statement of operations Year ended December 31, 2019 Budget 2019 2018 (Note 18)Actual Actual Notes $$$ Revenue Residential and farm taxation 52,542,863 53,264,567 50,047,871 Commercial and industrial taxation 11,436,546 11,322,827 11,088,267 Taxation from other governments 8,186,062 8,272,139 8,460,282 User charges 12,134,605 14,363,170 15,190,523 Government grants and fees 16,885,364 5,005,505 5,554,251 Other contributions and donations 11,761,400 1,346,399 5,230,490 Development charges and developer contributions earned 12,036,350 4,884,843 3,334,550 Contributed tangible capital assets 10(i)— 359,732 995,033 Investment income 540,000 2,084,515 1,875,542 Penalties and interests on taxes 2,265,000 2,907,048 2,568,692 Fines 857,000 973,255 884,224 Interest on promissory notes 5(c)1,229,138 1,083,797 1,229,138 Sale of land 12,000,000 113,001 — Income from government business enterprise 4(b)— 1,345,259 5,050,712 Change in valuation of investment in government business enterprise on amalgamation 4(b)— 12,849,416 — Other 344,578 891,874 900,306 142,218,906 121,067,347 112,409,881 Expenses 19 General government 19,925,128 20,311,428 17,065,742 Protection to persons and property 27,357,746 26,308,172 24,761,169 Transportation services 17,385,420 14,667,697 12,728,165 Environmental services 3,495,632 2,672,331 3,452,661 Social and family services 1,033,141 907,917 780,850 Recreational and cultural services 29,313,497 29,001,910 28,680,931 Planning and development 3,944,861 3,200,426 3,050,084 Loss on disposal of tangible capital assets — 2,576,719 246,005 102,455,425 99,646,600 90,765,607 Annual surplus 39,763,481 21,420,747 21,644,274 Accumulated surplus, beginning of year 403,332,893 403,332,893 381,688,619 Accumulated surplus, end of year 443,096,374 424,753,640 403,332,893 The accompanying notes are an integral part of the consolidated financial statements. Page 4Draft- 85 - The Corporation of the City of Pickering Consolidated statement of change in net financial assets Year ended December 31, 2019 Budget 2019 2018 (Note 18) Actual Actual $$$ Annual surplus 39,763,481 21,420,747 21,644,274 Acquisition of tangible capital assets (72,724,776) (53,394,975) (37,520,480) Amortization of tangible capital assets 11,139,146 12,162,640 12,480,087 Loss on disposal of tangible capital assets — 2,576,719 246,005 Proceeds on disposal of tangible capital assets — 385,334 137,444 (21,822,149) (16,849,535) (3,012,670) Transfer of assets under construction to tangible capital assets — 24,913,528 4,952,232 Assets under construction expensed — 136,444 82,345 — 25,049,972 5,034,577 Acquisition of inventory of supplies — (794,130) (700,163) Use of inventory of supplies — 681,819 755,268 Acquisition of prepaid expenses — (2,024,710) (231,462) Use of prepaid expenses — 222,874 295,196 — (1,914,147) 118,839 Change in net financial assets (21,822,149) 6,286,290 2,140,746 Net financial assets, beginning of year 142,849,850 142,849,850 140,709,104 Net financial assets, end of year 121,027,701 149,136,140 142,849,850 The accompanying notes are an integral part of the consolidated financial statements. Page 5Draft- 86 - The Corporation of the City of Pickering Consolidated statement of cash flows Year ended December 31, 2019 2019 2018 $$ Operating transactions Annual surplus 21,420,747 21,644,274 Non-cash items Amortization of tangible capital assets 12,162,640 12,480,087 Loss on disposal of tangible capital assets 2,576,719 246,005 Income from government business enterprise (1,345,259) (5,050,712) Change in valuation of investment in government business enterprise on amalgamation (12,849,416) — Contributed tangible capital assets recorded in revenue (359,732) (995,033) Change in non-cash operating items Taxes receivable (1,373,973) (2,769,229) Accounts receivable (419,731) 587,779 Accounts payable and accrued liabilities (6,526,161) 6,150,073 Other current liabilities (1,129,825) (3,394,206) Deferred revenue 6,789,078 12,288,515 Post-employment benefit liability 611,487 650,538 WSIB benefit liabilities 51,484 54,303 Inventory (112,311) 55,105 Land held for resale 4,144,903 (3,850,372) Prepaid expenses (1,801,836) 63,734 21,838,814 38,160,861 Capital transactions Acquisition of tangible capital assets (net of transfers and contributions)(27,985,271) (31,490,870) Proceeds on disposal of tangible capital assets 385,334 137,444 (27,599,937) (31,353,426) Investing transactions Decrease in investments 10,418,352 3,845,503 Dividends received from Elexicon Corporation and Veridian Corporation 2,446,708 1,927,000 12,865,060 5,772,503 Financing transactions Proceeds from debentures issued 4,531,000 3,604,000 Principal repayment of debentures (3,129,987) (5,598,009) Decrease in note receivable 274,170 266,860 1,675,183 (1,727,149) Increase in cash and cash equivalents 8,779,120 10,852,789 Cash and cash equivalents, beginning of year 100,619,531 89,766,742 Cash and cash equivalents, end of year 109,398,651 100,619,531 Cash and cash equivalents consists of Cash 11,245,966 16,110,036 Cash equivalents 98,152,685 84,509,495 109,398,651 100,619,531 The accompanying notes are an integral part of the consolidated financial statements. Page 6Draft- 87 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 7 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 (i) 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 government business enterprise The City’s investment in Elexicon Corporation (formerly Veridian Corporation until March 31, 2019) is accounted for on a modified equity basis, consistent with Canadian public sector accounting standards for investments in government business enterprises. Under the modified equity basis, Elexicon 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 Elexicon Corporation in its Consolidated Statement of Operations with a corresponding increase or decrease in its investment asset account. Dividends that the City may receive from Elexicon Corporation and other capital transactions are reflected as adjustments in the investment asset account. (iii) Operations of School Boards and the Regional Municipality of Durham The taxation, other revenues, expenses, assets and liabilities with respect to the operations of the school boards and the Regional Municipality 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 Fund Balance and Statement of Financial Position. (b) Basis of accounting (i) 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. Draft- 88 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 8 1. Significant accounting policies (continued) (b) Basis of accounting (continued) (iii) Investments Long-term investments are recorded at cost and any loss in value which is considered other than temporary is recorded as incurred. Any premium or discount at the purchase of an investment is amortized over the life of the investment. (iv) Tangible capital assets Tangible capital assets are recorded at cost less accumulated amortization. Cost includes all costs directly related to the 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 the straight- line basis over the estimated useful life of the tangible capital asset commencing once the asset is available for use as follows: Buildings 5 to 50 years Machinery and equipment various Vehicles 7 to 15 years Infrastructure - Roads 10 to 75 years Infrastructure - Storm sewers 50 to 100 years Infrastructure - Sidewalks 15 to 75 years Infrastructure - Parks 10 to 100 years Information technology hardware 4 to 10 years Library collection materials 4 to 7 years Furniture and fixtures various One half of the annual amortization is charged in the year of acquisition and in the year of disposal. Assets under construction are not amortized until the tangible capital asset is available for productive use. Land is not amortized. Tangible capital assets received as contributions are recorded at their fair value at the date contributed, with the corresponding amount recorded as revenue. (v) Accounting for Property Tax Capping Provisions resulting from the Ontario Fair Assessment System The net impact on property taxes as a result of the application of the capping provisions does not affect the Consolidated Statement of Operations as the full amounts of the property taxes were levied. However, the capping adjustments are reported on the Consolidated Statement of Financial Position as a receivable/payable from/to the Region. (vi) Deferred revenue Deferred revenue represents contributions, user charges and fees which have been collected but for which the related services have yet to be performed. These amounts will be recognized as revenue 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 City’s actuary determined the 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 ARSP of 15 years. Draft- 89 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 9 1. Significant accounting policies (continued) (b) Basis of accounting (continued) (viii) Inventory Inventory is valued at the lower of cost and replacement cost. Cost is determined on a weighted-average basis. (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 rates authorized by Council for the City’s own purposes in the period for which the tax is levied. (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 radioactive material or live organism that exceeds an environmental standard. A liability for remediation of contaminated sites is recognized, net of any expected recoveries, when all of the following criteria are met: (a) an environmental standard exists; (b) contamination exceeds the environmental standard; (c) the City is directly responsible or accepts responsibility for the liability; (d) future economic benefits will be given up; and (e) a reasonable estimate of the 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 meets 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. Draft- 90 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 10 1. Significant accounting policies (continued) (b) Basis of accounting (continued) (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. 2. Operations of school boards and the Regional Municipality of Durham Further to Note 1(a)(iii), requisitions are made by the Regional Municipality 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 summarized as follows: 2019 2018 Region School board Region School board $$$$ Taxation 116,785,587 48,958,047 111,062,448 47,323,546 Payments in lieu of taxes 6,038,586 369,346 6,260,991 380,526 122,824,173 49,327,393 117,323,439 47,704,072 3. Investments 2019 2018 Cost Market value Cost Marlet value $$$$ Investments 67,962,213 68,033,818 78,380,565 78,041,001 Investments are comprised of deposit notes, bonds, and guaranteed investment certificates. 4. Investment in government business enterprise (a) Until March 31, 2019, the City held a 41% interest in Veridian Corporation, which was owned by the City of Pickering, Town of Ajax, Municipality of Clarington, and the City of Belleville. Effective April 1, 2019, Veridian Corporation amalgamated with Whitby Hydro Electric Corporation to form Elexicon Corporation. Elexicon Corporation is owned by the legacy owners of Veridian Corporation, and the Town of Whitby. The City holds a 27.88% interest in Elexicon Corporation. Elexicon Corporation, as a government business enterprise, is accounted for on the modified equity basis in these financial statements. Elexicon Corporation serves as the electrical distribution utility for a number of communities including the five noted above and conducts non-regulated utility service ventures through its subsidiaries. Draft- 91 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 11 4. Investment in government business enterprise (continued) (a) (continued) The following table provides condensed supplementary consolidated financial information for Elexicon Corporation and its subsidiaries as at and for the nine-month period ended December 31, 2019 (year ended December 31, 2018 in 2018). The amounts are disclosed in thousands of dollars: 2019 2018 (000’s)(000’s) $$ Assets Current 84,933 70,908 Capital and intangibles 506,254 291,057 Other 256 166 Total assets 591,443 362,131 Regulatory balances 15,145 7,217 Total assets and reg ulatory balances 606,588 369,348 Liabilities Current 87,413 152,979 Long-term debt 180,360 37,132 Other 91,408 33,310 Total liabilities 359,181 223,421 Shareholders’ equity Share capital 97,692 67,260 Contributed capital 25 25 2019 Contributed Surplus 79,301 — Accumulated other comprehensive loss (816) (53) Retained earnings 68,597 70,537 Total equity 244,799 137,769 Regulatory balances 2,608 8,158 Total liabilities , e q uity and regulatory balances 606,588 369,348 9 months ended Year ended Dec 31, 2019 Dec 31, 2018 (000's)(000's) $$ Comprehensive Income Commodity revenue 305,445 266,543 Commodity expenses (311,627) (269,157) Distribution revenue 58,759 54,254 Operating expenses (49,195) (42,200) Other expense (5,253) (3,333) Accumulated other comprehensive loss (500) 263 Net movements in regulatory balances, net of tax 9,180 5,949 Total comprehensive income for the year 6,809 12,319 Draft- 92 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 12 4. Investment in government business enterprise (continued) (a) (continued) Financial information for Veridian Corporation for the period January 1 to March 31, 2019 are as follows: January 1 to March 31, 2019 (000’s) $ Comprehensive Income Commodity revenue 66,011 Commodity expenses (68,925) Distribution revenue 13,691 Operating expenses (13,259) Other expense (1,507) Accumulated other comprehensive loss (263) Net movements in regulatory balances, net of tax 2,903 Total comprehensive income for the period (1,349) (b) Equity in Elexicon Corporation and amalgamation adjustments The amalgamation of Veridian Corporation and Whitby Hydro Electric Corporation was accounted for as an acquisition by legacy Veridian Corporation. On amalgamation, the change in the City’s ownership percentage as well as the issuance of additional shares resulted in the following amalgamation adjustments: $ Change in investment valuation due to decrease in ownership percentage on amalgamation (17,744,144) Increase in share valuation on amalgamation 30,593,560 Total amalgamation adjustments 12,849,416 The City’s equity in Elexicon Corporation is as follows at the end of 2019: 2019 2018 $$ Balance, beginning of year 84,628,856 81,505,144 Equity share of net loss for the three month period ended March 31, 2019 from Veridian Corporation (year ended December 31, 2018)(553,090) 5,050,712 Equity share of net earnings for the period April 1, 2019 to December 31, 2019 from Elexicon Corporation 1,898,349 — Amalgamation adjustments 12,849,416 — Dividend received (2,446,708) (1,927,000) Balance, end of year 96,376,823 84,628,856 Draft- 93 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 13 4. Investment in government business enterprise (continued) (c) City of Pickering’s investment is represented by: 2019 2018 $$ Promissory notes receivable (Note 5)25,069,000 25,069,000 Investments in Elexicon Corporation (formerly Veridian) Initial investment in shares of the Corporation 30,496,196 30,496,196 Amalgamation adjustments 12,849,416 — Accumulated earnings 56,975,653 55,630,394 Accumulated dividends received (32,872,170) (30,425,462) Adjustment to value of investment 815,708 815,708 68,264,803 56,516,836 (d) Contingencies and guarantees of Elexicon Corporation (the “Corporation”) as disclosed in their consolidated financial statements are as follows: (i) Insurance claims The Corporation is a member of the Municipal Electric Association Reciprocal Insurance Exchange (“MEARIE”) 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 electric utilities. 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 $164,885,000 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, Elexicon Energy Inc. (“EEI”) (formerly Veridian Connections Inc.), is party to a connection and cost recovery agreement with HONI related to the construction by HONI of a transformer station designated to meet EEI’s anticipated electricity load growth. Construction of the project was completed during 2007 and EEI connected to the transformer station during 2008. To the extent that the cost of the project is not recoverable from future transformation connection revenues, EEI is obligated to pay a capital contribution equal to the difference between these revenues and the construction costs allocated to EEI. The construction costs allocated to EEI for the project are $19,950,000. Hydro One has performed a true-up based on actual load at the end of the tenth anniversary of the in-service date and the Corporation has paid $637,000 to Hydro One and recognized the same as an intangible asset. The Corporation has also recorded a current liability and a corresponding intangible asset for $1,533,000 as at December 31, 2019, based on management’s best estimate of the future transformation connection revenues shortfall. Hydro One is expected to perform another true-up based on actual load at the end of the fifteenth anniversary of the in-service date. Draft- 94 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 14 4. Investment in government business enterprise (continued) (d) (continued) (iii) Prudential Support Purchasers of electricity in Ontario, through the Independent Electricity System Operator (“IESO”), are required to provide security to mitigate the risk of default based on their expected activity in the market. The IESO could draw on this security if the Corporation fails to make the payment required on a default notice issued by the IESO. The Corporation has provided a $64,000,000 guarantee to the IESO on behalf of EEI. Additionally, the Corporation has provided a $6,900,000 letter of credit to the IESO for prudential support. (iv) 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: $ 2020 475,000 2021 363,000 2022 229,000 2023 179,000 2024 124,000 Thereafter 210,000 1,580,000 5. Promissory notes receivable 2019 2018 $$ Elexicon Corporation (formerly Veridian Corporation)7,095,000 7,095,000 Elexicon Energy Inc. (formerly Veridian Connections Inc.)17,974,000 17,974,000 25,069,000 25,069,000 (a) Maturity The promissory notes were issued by the legacy Veridian Corporation and Veridian Connections Inc. and were assumed by Elexicon Corporation and Elexicon Energy Inc. upon amalgamation on April 1, 2019. The promissory notes under Elexicon Corporation and Elexicon Energy Inc. are due on demand. The City has agreed not to demand repayment of the notes prior to December 31, 2020. Draft- 95 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 15 5. Promissory notes receivable (continued) (b) Interest Rate Commencing April 1, 2019 for a ten-year period, interest on the notes will be determined based on the deemed long-term interest rate prescribed by the Ontario Energy Board in its most recent cost of capital parameter update (“OEB rate”). As of April 1, 2019, the OEB rate was determined at 4.13%. On the tenth year anniversary of the note, the interest rate will be adjusted to the OEB rate in effect at that time. Thereafter, the interest rate will be adjusted to the OEB rate in effect at the earlier of: (i) The five year anniversary of the most recent interest rate adjustment of these notes, and (ii) The date on which Elexicon Energy Inc. files a cost of service application with the Ontario Energy Board. The City may demand full or partial repayment with sixty days’ notice of the principal and accrued interest. (c) Interest revenue Interest revenue earned from these notes receivable totaled $1,083,797 ($1,229,138 in 2018). 6. Deferred revenue 2019 2018 $$ Obligatory reserve funds Development charges 62,598,255 58,789,415 Parkland 7,385,482 6,463,242 Federal gas tax 7,680,187 5,310,843 Third party/Developer's contributions reserve fund 2,724,805 2,790,108 80,388,729 73,353,608 Other unearned revenues 3,883,277 4,129,320 84,272,006 77,482,928 Continuity of deferred revenue is as follows: 2019 2018 $$ Balance, beginning of year 77,482,928 65,194,413 Restricted funds received 13,992,779 20,092,304 General funds received 513,922 896,508 Interest earned (restricted funds)1,559,577 1,064,773 16,066,278 22,053,585 Earned restricted revenue transferred to operations 8,517,235 9,189,639 Earned revenue transferred to operations 759,965 575,431 9,277,200 9,765,070 Balance , end of year 84,272,006 77,482,928 Draft- 96 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 16 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: 2019 2018 $$ Roads 434,074 564,296 Community facilities, libraries and parks 561,212 815,139 Protection services 254,792 296,535 Stormwater system 261,985 310,829 1 ,512,063 1,986,799 8. Post-employment benefits liability (a) Post-employment benefits liability The City makes available to qualifying employees who retire before the age of 65, the opportunity to continue their coverage for benefits such as post-retirement extended healthcare benefits. Coverage ceases at the age of 65. The City also provides full time and permanent part-time employees a sick time entitlement and any unused entitlement is accumulated year to year. This accumulated entitlement is not vested and is forfeited at the time of retirement or termination. The most recent actuarial valuation of the post- employment benefits was performed at December 31, 2018, with a projection to December 31, 2019. Information about the City’s benefits liability is as follows: 2019 2018 $$ Accrued benefits liability, beginnin g of year 6,260,194 5,609,656 Current service costs 566,466 535,285 Interest on accrued benefits 415,007 411,606 Amortization of actuarial losses 538,257 538,856 Benefits paid during the year (908,243) (835,209) Accrued benefits liability, end of year 6,871,681 6,260,194 Accrued benefit obligation 11,310,985 11,237,755 Unamortized actuarial losses (4,439,304) (4,977,561) Accrued benefits liability, end of year 6,871,681 6,260,194 Draft- 97 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 17 8. Post-employment benefits liability (continue) (a) Post-employment benefits liability (continued) The main actuarial assumptions employed in the actuarial valuations for the post- employment benefits are as follows: (i) Discount rate The present value as at December 31, 2019 of the future benefits was determined using a discount rate of 3.75% (3.75% in 2018). (ii) Dental costs The dental cost trend rate was 3.75% (3.75% in 2018) increase per annum. (iii) Health costs Health costs were assumed to increase at 6.09% (6.42% in 2018) and decrease by 0.33% (0.33% in 2018) 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, with a projection to December 31, 2019. Information about the City’s WSIB benefit liability is as follows: 2019 2018 $$ Accrued WSIB liability, beginning of year 1,917,179 1,862,876 Current service cost 132,391 128,519 Interest on accrued benefits 91,023 90,135 Amortization of actuarial losses 30,254 30,254 Benefits paid during the year (202,184) (194,605) 1 ,968,663 1,917,179 Accrued benefit obligation 2,331,706 2,310,476 Unamortized actuarial losses (363,043) (393,297) Accrued benefits liabilit y, end of year 1,968,663 1,917,179 The main actuarial assumptions employed in the actuarial valuations are as follows: (i) Discount rate The present value as at December 31, 2019 of the future benefits was determined using a discount rate of 4.0% (4.0% in 2018). (ii) Inflation rate The rate of inflation was assumed to be 1.75% (1.75% in 2018) per annum. Draft- 98 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 18 8. Post-employment benefits liability (continued) (b) Workplace Safety and Insurance Board (WSIB) benefit liabilities (continued) (iii) WSIB Administration Rate Liabilities for WSIB benefits have been increased 38% to reflect the administration rate charged by WSIB. A WSIB Reserve Fund was established in 2001. The Reserve Fund balance as at December 31, 2019 (Note 11) was $3,930,110 ($3,548,321 as at December 31, 2018). In addition, the City purchased two insurance policies that protect the City against significant claims. The occupational accident insurance pays loss claims up to $500,000 per work related accident. The excess workers compensation indemnity insurance has a $500,000 deductible and will pay for claims up to and including $15,000,000 per work related accident. 9. Long-term liabilities (a) The balance of long-term liabilities is made up of the following: 2019 2018 $$ The City is responsible for the payment of principal and interest 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 30,819,986 29,418,973 (b) The above long-term liabilities have maturity dates of July 12, 2021 and 2022, October 15, 2020, September 29, 2021, October 16, 2023, July 2, 2029, October 17, 2021, 2026 and 2031, October 13, 2022, 2027, 2032 and 2037, September 14, 2023, 2028, 2033 and 2038 and November 29, 2024, 2029 and 2039 with various interest rates ranging from 1.10% to 5.12%. Principal repayments are summarized as follows: $ 2020 3,557,344 2021 3,763,385 2022 2,806,998 2023 2,614,596 2024 2,124,801 Thereafter 15,952,862 30,819,986 (c) Long-term liabilities include principal sums of $952,000 ($952,000 in 2018) which may be refinanced by the issuance of debentures over a further period not to exceed 5 years. (d) The above long-term liabilities have been approved by Council by-law. The annual principal and interest payments required to service these liabilities are within the annual debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing. (e) Interest expense recorded in the year relating to these long-term liabilities is $820,812 ($935,509 in 2018). Draft- 99 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 19 10. Tangible capital assets Information relating to tangible capital assets is as follows: (i) Contributed tangible capital assets The City records tangible capital assets contributed by an external party at fair value on the date contributed. Typical examples are roads, storm sewers and sidewalks installed by a developer as part of a subdivision or development agreement. Contributions of tangible capital assets in 2019 amounted to $359,732 ($955,033 in 2018). (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 majority of land acquired to support 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 consolidated 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 consolidated financial statements. (iv) Other The net book value of tangible capital assets not being amortized because they are under construction is $12,912,198 ($31,236,184 in 2018). During the year, there were no write-downs of assets ($Nil in 2018) and no interest was capitalized during the year ($Nil in 2018). (v) Land held for resale During the year ended December 31, 2018, the City acquired a land parcel along the 407 corridor from Infrastructure Ontario for the purpose of resale for economic development. As a result, this land was not capitalized as a tangible capital asset but instead recorded as land held for resale. The value reported on the Consolidated Statement of Financial Position reflects the purchase price and other related servicing costs recoverable on the sale of land. This parcel of land was sold to Kubota Inc. in January 2019. As at December 31, 2019, deposits of $1,853,549 were made towards five parcels of land which are recorded as prepaid expenses. Draft- 100 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 20 10. Tangible capital assets (continued) MachineryInformation Library FurnitureAssetsand technology collectionandunderLand Buildings equipment Vehicles Infrastructure hardware materials fixtures construction2019$$$$ $$$$$$CostBalance, beginning of year55,997,456 83,923,046 10,439,756 13,307,132 292,450,399 2,092,391 2,250,862 884,410 31,236,184 492,581,636 AddAdditions during the year143,759 32,584,403 1,557,732 3,198,795 8,259,343 245,587 344,482 334,888 6,725,986 53,394,975 LessDisposals/transfers during the year9,871 396,630 523,459 1,183,922 6,425,349 22,588 421,680 — 25,049,972 34,033,471 Balance, end of year56,131,344 116,110,819 11,474,029 15,322,005 294,284,393 2,315,390 2,173,664 1,219,298 12,912,198 511,943,140 AccumulatedamortizationBalance,beginning of year— 46,014,835 5,427,167 7,594,919 170,764,482 1,374,250 1,155,683 370,946 — 232,702,282 AddAmortization— 4,176,541 849,043 1,016,786 5,426,276 243,542 383,642 66,810 — 12,162,640 LessAccumulatedamortizationon disposals— 369,486 483,479 1,177,455 3,546,759 22,588 421,679 — — 6,021,446 Balance, end of year— 49,821,890 5,792,731 7,434,250 172,643,999 1,595,204 1,117,646 437,756 — 238,843,476 Net book value oftangible capitalassets56,131,344 66,288,929 5,681,298 7,887,755 121,640,394 720,186 1,056,018 781,542 12,912,198 273,099,664 Draft- 101 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 21 10. Tangible capital assets (continued) MachineryInformation Library Furniture Assetsand technology collection and underLand Buildings equipment VehiclesInfrastructure hardware materials fixtures construction2018$$$$ $$$$$ $CostBalance, beginning of year 55,662,991 81,644,369 9,149,950 13,343,358 280,938,295 1,785,121 2,358,369 730,808 18,379,602 463,992,863 AddAdditions during the year484,872 3,819,321 1,621,835 494,571 12,261,833 426,475 366,812 153,602 17,891,159 37,520,480 LessDisposals/transfers during the year150,407 1,540,644 332,029 530,797 749,729 119,205 474,319 — 5,034,577 8,931,707 Balance, end of year 55,997,456 83,923,046 10,439,756 13,307,132 292,450,399 2,092,391 2,250,862 884,410 31,236,184 492,581,636 AccumulatedamortizationBalance,beginning of year— 44,034,616 4,980,437 7,279,120 164,665,893 1,229,914 1,224,942 320,954 — 223,735,876 AddAmortization— 3,508,849 750,557 846,596 6,691,254 227,779 405,060 49,992 — 12,480,087 LessAccumulatedamortizationon disposals— 1,528,630 303,827 530,797 592,665 83,443 474,319 — — 3,513,681 Balance, end of year— 46,014,835 5,427,167 7,594,919 170,764,482 1,374,250 1,155,683 370,946 — 232,702,282 Net book value oftangible capitalassets55,997,456 37,908,211 5,012,589 5,712,213 121,685,917 718,141 1,095,179 513,464 31,236,184 259,879,354 Draft- 102 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 22 11. Accumulated surplus The City’s accumulated surplus is comprised of the following: 2019 2018 $$ Capital fund 18,495,702 20,701,530 Operating fund 125,253 125,247 Equity in Veridian Corporation 96,376,823 84,628,856 Tangible capital assets 273,099,664 259,879,354 Post-employment benefits liability (6,692,681) (6,081,194) Interfund loans (1,512,063) (1,986,799) Net long-term liabilities (30,819,986) (29,418,973) Note receivable soccer facility 3,255,916 3,530,086 WSIB benefit liabilities (1,968,663) (1,917,179) Reserves set aside for special purposes by Council Working capital 400,000 400,000 Self insurance 677,642 912,642 Replacement of capital equipment 1,997,241 2,316,335 Contingencies 1,772,591 1,702,591 Rate stabilization 19,370,349 17,962,479 City's share for development charge 7,275,413 9,384,927 Continuing studies 429,451 703,285 Vehicle replacement 2,046,341 1,612,757 Easement settlement 390 390 Land purchase 14,403 14,403 Seaton development review 1,437,822 1,437,822 Financial systems 273,308 43,647 Senior centre 1,400,000 700,000 Accessibility initiatives 31,944 31,944 Winter control 700,000 700,000 Sustainability initiatives 300,455 294,455 Duffin Heights 3,201,585 3,430,925 Facilities 566,162 119,345 Accelerated infrastructure program 519,500 519,500 Fence 180,000 150,000 Minor buildings replacement 700,000 300,000 Tennis Courts 796,325 111,100 Major Equipment 275,000 — Museum Collection 2,388 — Recreation Complex 75,000 — Library Building 80,000 — Reserve funds set aside for special purpose by Council Recreation programs and facilities 385,178 377,363 Acquisition of tangible capital assets 303,851 297,686 WSIB 3,930,110 3,548,321 Animal shelter 682,863 522,608 Men's slow pitch 1,638 144,127 Operations Centre 14,286,624 18,375,610 Roads & bridges 4,422,806 3,456,460 Stormwater management 2,944,126 2,683,162 Ontario Community Infrastructure Fund 1,505,939 616,668 Seaton infrastructure 232,703 223,816 Seaton Financial Impact Agreement 1,174,527 777,597 424,753,640 403,332,893 Draft- 103 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 23 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 496,000 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, 2019. The results of this valuation disclosed total actuarial liabilities as at that date of $106,443 million in respect of benefits accrued for service with actuarial assets at that date of $103,046 million indicating an actuarial deficit of $3,397 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 not recognize any share of the OMERS pension surplus or deficit. Contributions made by the City to OMERS on account of current service for 2019 were $4,128,799 ($3,985,649 in 2018). 13. Trust Funds Trust funds administered by the City amounting to $373,033 ($367,148 in 2018) have not been included in the Consolidated Statement of Financial Position nor have their operations been included in the Consolidated Statement of Operations. 14. Related party transactions Elexicon Corporation The City of Pickering is a shareholder in Elexicon Corporation (Note 4). The City receives electricity and services from Elexicon Corporation and its subsidiary. 2019 2018 $$ Transactions Revenues Interest on promissory notes 1,083,797 1,229,138 Property taxes levied 42,020 45,172 Expenses Electrical energy and services 1,957,649 2,077,577 Balances Accounts payable and accrued liabilities 393,589 403,117 Promissory notes receivable 25,069,000 25,069,000 Draft- 104 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 24 15. Guarantees In the normal course of business, the City enters into agreements which contain guarantees. The City’s primary guarantees are as follows: (i) 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. (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 statutory sanctions that may be suffered by the counterparty as a consequence of the transaction. The terms of these indemnities are not explicitly defined and the maximum amount of any potential reimbursement cannot be reasonably estimated. The nature of these indemnification agreements prevents the City from making a reasonable estimate of the maximum exposure due to the difficulties in assessing the amount of liability 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 such 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 made 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 Pickering Indoor Soccer Facility (the “Facility”). The term of the agreement is 15 years from November 5, 2014 to 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. Draft- 105 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 25 17. Contractual arrangement (continued) 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. 18. Budget figures The 2019 Budget adopted by Council on February 25, 2019 was not prepared on a basis consistent with that used to report actual results. The budget was prepared on a modified accrual basis while Canadian 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 25, 2019 with adjustments as follows: 2019 2019 Post- Council Non TCA employ ment Budget a pproved expenditures benefits/presented in budget from capital amortization statements $$$$ Revenue Taxation 72,165,471 72,165,471 Capital 51,628,414 51,628,414 Other 18,425,021 18,425,021 142,218,906 — — 142,218,906 Expenditures General government 18,632,261 406,000 886,867 19,925,128 Protection to persons and property 26,273,446 — 1,084,300 27,357,746 Transportation services 10,339,151 3,000,000 4,046,269 17,385,420 Environmental services 1,309,597 — 2,186,035 3,495,632 Social and family services 1,033,141 1,033,141 Recreational and cultural services 25,208,981 508,000 3,596,516 29,313,497 Planning and development 3,942,731 — 2,130 3,944,861 86,739,308 3,914,000 11,802,117 102,455,425 Annual surplus (deficit)55,479,598 (3,914,000) (11,802,117) 39,763,481 Capital expenditures (76,638,776) 3,914,000 — (72,724,776) Transfers from reserve and reserve funds 10,215,909 Dividend from Veridian Corporation 1,927,000 Principal repayment of debt (4,567,496) Principal repayment of PSC note 225,000 Debt proceeds 13,233,765 Prior year operating fund surplus (125,000) Draft- 106 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 26 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. 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 municipal planning and review of all property development plans. Segmented information has been provided in the following pages. Draft- 107 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 27 19. Segmented information (continued) 2019Protection Social and to persons Public works Recreational Planning andfamilyGeneraland propertyservices and cultural development servicesgovernment Consolidated$$ $$$$ $Revenue Grants255,970 2,948,471 1,159,068 — 135,612 506,384 5,005,505 User charges5,380,226 57,852 6,584,649 1,409,635 67,247 863,561 14,363,170 Tax related revenues— — — — — 75,766,581 75,766,581 Developer revenue1,475,077 1,731,969 1,141,931 147,731 7,700 1,726,834 6,231,242 Contributed tangiblecapital assets— 235,826 109,009 — — 14,897 359,732 Income from governmentbusiness enterprise— — — — — 1,345,259 1,345,259 Change in valuation of interest ingovernment business enterpriseon amalgamation— — — — — 12,849,416 12,849,416 Other revenues978,841 — 64,408 — — 4,103,193 5,146,442 8,090,114 4,974,118 9,059,065 1,557,366 210,559 97,176,125 121,067,347 ExpensesSalaries and wages21,782,707 5,675,823 17,182,003 2,726,454 335,965 10,239,791 57,942,743 Materials and supplies2,508,884 4,203,023 6,240,451 206,532 147,177 5,037,529 18,343,596 Contracted services1,027,378 1,101,831 621,912 255,236 341,838 3,524,714 6,872,909 Amortization860,474 5,897,131 4,159,102 2,359 — 1,243,574 12,162,640 Other 128,729 462,220 798,442 9,845 82,937 265,820 1,747,993 (Gain) loss on disposal oftangible capital assets(158,613) 2,764,458 (22,424) — — (6,702) 2,576,719 26,149,559 20,104,486 28,979,486 3,200,426 907,917 20,304,726 99,646,600 Annual (deficit) surplus(18,059,445) (15,130,368) (19,920,421) (1,643,060) (697,358) 76,871,399 21,420,747 Draft- 108 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 28 19. Segmented information (continued) 2018ProtectionSocial and to persons Public works Recreational Planning andfamilyGeneraland propertyservices and cultural development servicesgovernment Consolidated$$ $$$$ $Revenue Grants56,957 3,111,935 2,161,568 — 107,487 116,304 5,554,251 User charges7,104,411 35,961 5,977,379 1,192,459 58,984 821,329 15,190,523 Tax related revenues— — — — — 72,165,112 72,165,112 Developer revenue1,011,037 4,301,437 1,960,879 151,084 2,475 1,138,128 8,565,040 Contributed tangiblecapital assets— 510,162 — — — 484,871 995,033 Equity share of Veridian Corporation— — — — — 5,050,712 5,050,712 Gain (loss) on disposal oftangible capital assets— — — — — — — Other revenues976,890 — 74,033 — — 3,838,287 4,889,210 9,149,295 7,959,495 10,173,859 1,343,543 168,946 83,614,743 112,409,881 ExpensesSalaries and wages20,770,883 5,143,629 16,103,489 2,541,302 347,132 9,688,495 54,594,930 Materials and supplies2,235,136 3,393,702 6,492,757 203,914 137,433 5,160,551 17,623,493 Contracted services834,843 921,867 739,832 292,664 137,692 1,073,558 4,000,456 Amortization753,343 6,258,094 4,571,384 2,359 — 894,907 12,480,087 Other 166,964 463,534 773,469 9,845 158,593 248,231 1,820,636 24,743,498 16,301,324 28,774,343 3,050,084 780,850 17,115,508 90,765,607 Annual (deficit) surplus(15,594,203) (8,341,829) (18,600,484) (1,706,541) (611,904) 66,499,235 21,644,274 Draft- 109 - The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2019 Page 29 20. Subsequent event Subsequent to the year-end, on March 11, 2020, the World Health Organization characterized the outbreak of a strain of the novel coronavirus (“COVID-19”) as a pandemic which has resulted in a series of public health and emergency measures that have been put in place to combat the spread of the virus. The duration and impact of COVID-19 is unknown at this time and it is not possible to reliably estimate the impact that the length and severity of these developments will have on the consolidated financial position, results of operations and cash flows of the City in future periods. Draft- 110 - Financial statements of City of Pickering Public Library Board December 31, 2019 Draft- 111 - 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 7-12 Draft- 112 - Independent Auditor’s Report To the Board of Directors of The City of Pickering Public Library Board, and Members of Council of the Corporation of the City of Pickering Opinion We have audited the financial statements of City of Pickering Public Library Board (the “Library Board”), which comprise the statement of financial position as at December 31, 2019, and the statements of operations, change in net debt and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies (collectively referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Library Board as at December 31, 2019, and the results of its operations, changes in net debt, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards (“PSAS”). Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards (“Canadian GAAS”). Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are independent of the Library Board in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with PSAS, 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. In preparing the financial statements, management is responsible for assessing the Library Board’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Library Board or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Library Board’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian GAAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Deloitte LLP 400 Applewood Crescent Suite 500 Vaughan ON L4K 0C3 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca Draft- 113 - As part of an audit in accordance with Canadian GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: ● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. ● Obtain an understanding of internal control relevant to the audit 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 Library Board’s internal control. ● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. ● Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Library Board’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Library Board to cease to continue as a going concern. ● Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Chartered Professional Accountants Licensed Public Accountants December 14, 2020 Draft- 114 - City of Pickering Public Library Board Statement of financial position As at December 31, 2019 2019 2018 Notes $$ Financial assets Cash 1,225 1,225 Accounts receivable 874 2,294 Due from the Government of Canada 12,934 11,335 Due from City of Pickering 221,888 147,759 236,921 162,613 Liabilities Accounts payable and accrued liabilities 285,661 208,301 Post-employment benefits liability 2 471,282 464,078 756,943 672,379 Net debt (520,022) (509,766) Non-financial assets Tangible capital assets 4 1,420,297 1,494,063 Prepaid expense 48,740 45,688 1,469,037 1,539,751 Accumulated surplus 5 949,015 1,029,985 The accompanying notes are an integral part of the financial statements. Approved by the Board _______________________________, Director _______________________________, Director Page 3Draft- 115 - City of Pickering Public Library Board Statement of operations Year ended December 31, 2019 Budget 2019 2018 $$$ (Note 6) Revenue City of Pickering grants 6,018,601 5,930,982 5,882,770 Federal grants — 6,728 9,234 Province of Ontario grants 106,425 135,345 138,049 Fines and other receipts 166,500 130,761 136,720 6,291,526 6,203,816 6,166,773 Expenses Operating Salaries Salaries and wages 3,621,301 3,582,595 3,440,087 Fringe benefits 949,320 939,763 916,264 4,570,621 4,522,358 4,356,351 Material, supplies and utilities Books 252,290 262,455 234,355 Utilities 267,211 217,186 219,266 Other supplies 55,950 59,186 52,556 575,451 538,827 506,177 Services Repairs and maintenance 341,837 333,060 284,079 Insurance 25,918 23,918 23,918 Travel 6,000 6,341 7,358 Consulting and professional 21,850 28,535 112,978 Advertising 27,000 29,093 27,107 Conference 9,000 8,694 13,106 Postage 2,800 3,505 2,823 Telephone 77,915 60,263 65,597 Seminars and education 22,500 22,475 18,602 Software/hardware maintenance 172,765 172,902 150,008 Vehicle repairs and maintenance 4,843 2,324 3,816 Minor capital purchases 24,500 56,589 119,775 Miscellaneous 14,730 18,161 20,636 751,658 765,860 849,803 Amortization of tangible capital assets 463,289 457,741 466,629 6,361,019 6,284,786 6,178,960 Annual deficit (69,493) (80,970) (12,187) Accumulated surplus, beginning of year 1,029,985 1,029,985 1,042,172 Accumulated surplus, end of year 960,492 949,015 1,029,985 The accompanying notes are an integral part of the financial statements. T Page 4Draft- 116 - City of Pickering Public Library Board Statement of change in net debt Year ended December 31, 2019 Budget 2019 2018 $$$ (Note 6) Annual deficit (69,493) (80,970) (12,187) Acquisition of tangible capital assets (401,000) (383,975) (465,952) Amortization of tangible capital assets 463,289 457,741 466,629 62,289 73,766 677 Acquisition of prepaid expenses — (48,740) (45,688) Usage of prepaid expenses — 45,688 37,453 Change in prepaid expense — (3,052) (8,235) Change in net debt (7,204) (10,256) (19,745) Net debt, beginning of year (509,766) (509,766) (490,021) Net debt, end of year (516,970) (520,022) (509,766) The accompanying notes are an integral part of the financial statements. Page 5Draft- 117 - City of Pickering Public Library Board Statement of cash flows Year ended December 31, 2019 2019 2018 $$ Operating transactions Annual deficit (80,970) (12,187) Non-cash items Amortization of tangible capital assets 457,741 466,629 376,771 454,442 Change in non-cash operating items Decrease (increase) in accounts receivable 1,420 (961) (Increase) decrease in due from Government of Canada (1,599) 3,592 (Increase) decrease in due from City of Pickering (74,129) 14,947 Increase (decrease) in accounts payable and accrued liabilities 77,360 5,450 Decrease in deferred revenue — (14,793) Increase in post-employment benefits liability 7,204 11,510 (Increase) decrease in prepaid expense (3,052) (8,235) 7,204 11,510 383,975 465,952 Capital transaction Acquisition of tangible capital assets (383,975) (465,952) Net change in cash — — Cash, beginning of year 1,225 1,225 Cash, end of year 1,225 1,225 The accompanying notes are an integral part of the financial statements. Page 6Draft- 118 - City of Pickering Public Library Board Notes to the financial statements December 31, 2019 Page 7 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 amortization. Cost includes all amounts that are directly attributable to acquisition, development or betterment 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 2 to 25 years Information technology hardware 4 to 8 years 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. Other major assets including the Library buildings are owned by the City and are not reflected in these financial statements. (ii) Contribution/donation of tangible capital assets Tangible capital assets received as contributions or donations are recorded at their fair value at the date of receipt, and that fair value is also recorded as revenue. (iii) 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 for retirement and 12 years for sick leave benefits. (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. Draft- 119 - City of Pickering Public Library Board Notes to the financial statements December 31, 2019 Page 8 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 amortization expense of 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 post-employment extended healthcare benefits. Coverage ceases at the age of 65. The Library Board also provides full-time and permanent part-time employees a sick time entitlement, with any unused entitlement accumulated year to year. This accumulated entitlement is not vested and therefore is forfeited at the time of retirement or termination. The post-employment benefits obligation at December 31, 2019 and the changes in the accrued benefit obligation for the 2019 fiscal year was determined by actuarial valuation prepared as at December 31, 2017, with projection to December 31, 2019. Information about the Library Board’s post-employment benefits liability is as follows: 2019 2018 $$ Post-employment benefits liability, beginning of year 464,078 452,568 Current service costs 31,813 30,062 Amortization of actuarial (gains) losses (363) (262) Interest expense 13,512 13,157 Benefits paid during the year (37,758) (31,447) Post-employment benefits liability 471,282 464,078 2019 2018 $$ Accrued post-employment benefits obligation 370,872 363,305 Unamortized actuarial gains 100,410 100,773 Post-employment benefits liability 471,282 464,078 The main actuarial assumptions employed in the actuarial valuation are as follows: (a) Discount rate The present value as at December 31, 2019 of the future benefits was determined using a discount rate of 3.75% (3.75% in 2018). (b) Dental cost The dental cost trend rate was 3.75% (3.75% in 2018) per annum. Draft- 120 - City of Pickering Public Library Board Notes to the financial statements December 31, 2019 Page 9 2. Post-employment benefits liability (continued) (c) Health costs Health costs were assumed to increase at 6.09% (6.42% in 2018) and decrease by 0.33% (0.33% in 2018) 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 496,000 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, 2019. The results of this valuation disclosed total actuarial liabilities as at that date of $106,443 million in respect of benefits accrued for service with actuarial assets at that date of $103,046 million indicating an actuarial deficit of $3,397 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 Library Board does not recognize any share of the OMERS pension surplus or deficit. Contributions in the amount of $300,971 ($288,959 in 2018) were paid to OMERS on behalf of its members during the year. Draft- 121 - City of Pickering Public Library Board Notes to the financial statements December 31, 2019 Page 10 4. Tangible capital assets (TCA) Machinery Information Library Furniture Assets and technology collection and under equipment hardware materials fixtures construction 2019 $$$$$$ Cost Balance, beginning of year 23,681 301,848 2,250,862 423,691 — 3,000,082 Additions during the year — 13,013 344,482 26,480 — 383,975 Disposals/transfers to TCA during the year — — 421,679 — — 421,679 Balance, end of year 23,681 314,861 2,173,665 450,171 — 2,962,378 Accumulated amortization Balance, beginning of year 12,914 171,719 1,155,683 165,703 — 1,506,019 Amortization 1,869 49,180 383,642 23,050 — 457,741 Accumulated amortization on disposals — — 421,679 — — 421,679 Balance, end of year 14,783 220,899 1,117,646 188,753 — 1,542,081 Net book value 8,898 93,962 1,056,019 261,418 — 1,420,297 Machinery Information Library Furniture Assets and technology collection and under equipment hardware materials fixtures construction 2018 $$$$ $$ Cost — — — Balance, beginning — — — of year 23,681 255,350 2,358,369 350,759 20,290 3,008,449 Additions during the year — 46,498 366,812 72,932 — 486,242 Disposals/transfers to TCA during the year — — 474,319 — 20,290 494,609 Balance, end of year 23,681 301,848 2,250,862 423,691 — 3,000,082 Accumulated amortization Balance, beginning of year 10,546 129,978 1,224,942 148,243 — 1,513,709 Amortization 2,368 41,741 405,060 17,460 — 466,629 Accumulated amortization on disposals — — 474,319 — — 474,319 Balance, end of year 12,914 171,719 1,155,683 165,682 — 1,980,317 Net book value 10,767 130,129 1,095,179 257,988 — 1,494,063 Draft- 122 - City of Pickering Public Library Board Notes to the financial statements December 31, 2019 Page 11 5. Accumulated surplus Accumulated surplus consists of the following: 2019 2018 $$ Invested in tangible capital assets 1,420,297 1,494,063 Post-employment benefits liability (471,282) (464,078) 949,015 1,029,985 6. Budget figures The 2019 budget was not prepared on a basis consistent with that used to report actual results. The budget was prepared on a modified accrual basis while Canadian public sector accounting standards require a full accrual basis of accounting. The budget figures treated all tangible capital asset (TCA) acquisitions as expenditures and did not include amortization expense on tangible capital assets or post-employment benefits expenses on a full accrual basis. The following provides a reconciliation from the approved budget to the budget numbers presented in the financial statements. 2019 Post-emplo yment 2019 budget Council a pproved benefits / presented in budget Amortization/ statements City Assets $$$ Revenue City of Pickering 8,002,747 (1,984,146) 6,018,601 Province of Ontario grants 2,090,571 (1,984,146) 106,425 Fines and other receipts 166,500 — 166,500 10,259,818 (3,968,292) 6,291,526 Expenditures Salaries and benefits 4,563,417 7,204 4,570,621 Material, supplies and utilities 575,451 — 575,451 Services 751,658 — 751,658 Amortization — 463,289 463,289 5,890,526 470,493 6,361,019 Annual surplus (deficit)4,369,292 (4,438,785) (69,493) Capital ex penditures/ additions 4,369,292 (3,968,292) 401,000 7. Comparative figures Certain of the prior year’s comparative figures have been reclassified to conform to the current year’s presentation.Draft- 123 - City of Pickering Public Library Board Notes to the financial statements December 31, 2019 Page 12 8. Subsequent event Subsequent to the year-end, on March 11, 2020, the World Health Organization characterized the outbreak of a strain of the novel coronavirus (“COVID-19”) as a pandemic which has resulted in a series of public health and emergency measures that have been put in place to combat the spread of the virus. The duration and impact of COVID-19 is unknown at this time and it is not possible to reliably estimate the impact that the length and severity of these developments will have on the financial position, results of operations and cash flows of the Library Board in future periods.Draft- 124 - Report to Council Report Number: CS 02-20 Date: December 14, 2020 From: Brian Duffield (Acting) Director, Community Services Subject: Tender for Chestnut Hill Developments Recreation Complex – Lobby & Core Area Renovations – Construction - Tender No. T2020-16 - File: A-1440 Recommendation: 1. That Tender No. T2020-16 submitted by 1568796 Ontario Inc., O/A Renokrew in the amount of $5,587,299.13 (HST included) be accepted; 2. That the total gross project cost of $6,257,776.00 (HST included), including the amount of the tender, contingency, and other associated costs, and the total net project cost of $5,635,321.00 (net of HST rebate), be approved; 3. That Council authorize the Director, Finance & Treasurer to finance the net project cost of $5,635,321.00 as follows: a) the sum of $6,000,000.00 as provided for in the 2020 Recreation Complex-Core Capital Budget be revised to $5,600,000.00, and be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed 20 years; b) the balance sum of $35,321.00 to be funded by a transfer from the Rate Stabilization Reserve; c) the annual repayment charges in the approximate amount of $395,000.00 be provided for in the annual Current Budget commencing in 2021 or subsequent year in which the debentures are issued and continuing thereafter until the debenture financing is repaid; and, 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 City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: The Chestnut Hill Developments Recreation Complex (CHDRC) originally opened its doors in 1983. Thirty-seven years later, many of the building’s components, - 125 - CS 02-20 December 14, 2020 Subject: Tender for CHDRC Lobby & Core Area Renovations - Construction Page 2 systems and key amenities are aging and in need of a substantial retrofit. Recreation facility design and regulatory requirements have changed substantially since this facility was opened and this project will, where possible, address user expectations for a functional and inviting facility. Notable changes include accessibility requirements in the building code and regulations made under the Accessibility for Ontarians with Disabilities Act, and more recent changes in universal design to address the requirements of Human Rights legislation. None of these requirements were in effect when the facility was constructed. Tender No. T2020-16 was issued by the City of Pickering (City) on September 30, 2020 and closed on November 4, 2020 based on design work started in 2018 and incorporated comments from extensive stakeholder consultation. The scope of the project includes a complete gut renovation of the existing male and female change rooms for both members and non-members, extension of the second floor exercise area and related improvements, upgrades to existing finishes throughout the ground floor of the lobby and concourse and consolidation of existing service counters into a single point of service. Additional related work such as lifecycle water main replacements and upgrades to building life safety systems have been incorporated for efficiency. The work has been sequenced in phases to reduce disruptions to ongoing operations. Allowances have been included in the tender for the completion of particularly disruptive activities outside of normal operating hours. Five potential bidders were pre-qualified for RFPQ-5-2019, of which four submitted bids for this tender. Subject to receipt and approval of all submittals required by the tender documents, the low bid submitted by 1568796 Ontario Inc., O/A Renokrew in the amount of $5,587,299.13 (HST included) is recommended for approval. Total gross project cost is estimated to be $6,257,776.00 and the total net project cost is estimated at $5,635,321.00 (net of HST rebate). Financial Implications: 1. Tender Amount Tender No. T2020-16 $4,944,512.50 HST (13%) Total Gross Tender Cost 642,786.63 $5,587,299.13 2. Estimated Project Costing Summary Tender No. T2020-16 $4,944,513.00 Construction Contingency (12%) 593,342.00 Total Project Cost $5,537,855.00 HST (13%) 719,921.00 Total Gross Project Costs $6,257,776.00 HST Rebate (11.24%) (622,455.00) Total Net Project Cost $5,635,321.00 - 126 - CS 02-20 December 14, 2020 Subject: Tender for CHDRC Lobby & Core Area Renovations - Construction Page 3 3.Approved Source of Funds Description CHDRC - Lobby & Core Area Renovations – Construction Account Code 5731.2014.6500 Source of Funds Debt – 20 years Budget $6,000,000.00 Required $5,600,000.00 Rate Stabilization Reserve 0.00 35,321.00 Total Funds $6,000,000.00 $5,635,321.00 Project Cost under (over) approved funds by $364,679.00 The City’s Financial Control Policy provides that a capital project contingency guideline be established at 12 per cent. Providing for a contingency that is above the 12 per cent would attract costs such as debt servicing and debt issuance. The CHRDC was opened in the mid 1980’s and therefore, the building is approximately 35 years old. There is the risk that during renovations, unanticipated costs may incur due to the age of the building associated with possible concealed conditions. As stated above, a contingency of 12 per cent or $593,342.00 is being provided to address unanticipated renovation costs. However, to address possible higher unforeseen renovation costs, the 2021 Capital Budget will include a provision of $200,000.00 financed as an internal loan. If required, the final internal loan borrowed amount will be based on what was spent and not a budget amount resulting in possible savings for the taxpayer. Therefore staff are recommending a two stage contingency strategy with the first dollar level at $593,342.00 and the second stage at $200,000.00. Discussion: Originally designed and constructed in the early 1980s, CHDRC has undergone a series of superficial face lifts to its core public areas and amenities over the last three decades. It has never undergone a full renovation, which would normally be expected to occur in the 25-30 year range, as many major building systems and components have reached end of life. The main core area of the CHDRC is overdue for such a renovation. Accessibility compliance deficiencies were identified in the construction of existing service counters in 2014. Additional overlapping and related deficiencies and lifecycle replacements were identified in the surrounding areas of the building while exploring how best to remedy the situation. A consolidated solution was deemed the most cost effective and timely approach to addressing as many of the emerging needs as possible, rather than a lengthy and expensive string of minor repairs that might prove insufficient to address underlying issues. Design consultants were retained in late 2018 and proposed solutions were presented for discussion with direct stakeholder groups and at two public open houses in January 2019. - 127 - CS 02-20 December 14, 2020 Subject: Tender for CHDRC Lobby & Core Area Renovations - Construction Page 4 As a result, Tender No. T2020-16 came to incorporate the following work: - Consolidation and replacement of existing service counters and staff areas into a single point of service compliant with all current accessibility regulations; - Expansion of the second floor exercise area to the edge of the windows overlooking the pool, including improved separation of the space from the rest of the building and a new dedicated HVAC system; - Gut renovation of the male and female public change rooms, and the male and female members change room, to create a new universal public change room and two separate, gender-specific members change rooms; - Improvements to security and access controls between the public and paid-access areas, and throughout the work area; - Improvements to life safety systems to upgrade existing fire separations to current code requirements; - Replacement of existing domestic and fire service water mains from the property’s edge into the building; and, - Complete replacement of the floor finish in the main concourse and creation of a new feature wall and multi-purpose social space in the main lobby. Consolidation of related project needs has two major benefits: disruptions to ongoing operations will be minimized and improved overall cost efficiency. Staff have consulted with major stakeholders to develop tentative phasing of the work, and will work with the contractor to ensure that this remains a priority. Upon completion, a single, accessible service counter will be located where the current main reception desk is situated. It will be best positioned for visibility by patrons, and to monitor traffic and activity throughout the concourse. Booking and registration staff will move to new workstations in the same area. Digital display screens will be mounted throughout the lobby and concourse to offer improved communication of programming, events and other information to the public. The large feature wall will be equipped with display screens suitable for hosting major events, such as major league playoff viewing parties. This feature area will also support banquet hall operations by providing the option to extend such events into the lobby. The City has previously had to rent equipment to host such activities. Access controls are being changed from the current triple-pronged turnstiles to man-gate type units more commonly seen in newer transit stations. The new system will better control traffic flow between the lobby and paid areas, reducing challenges for small children, parents with strollers and individuals carrying bags. A glass separation will be introduced between the two corridors to prevent the passage of goods, such as bags and access cards, which has been problematic in the past. Upgraded security camera surveillance in public areas is included in the scope of work. The public change rooms will be combined into a single universal change room and linked with the existing family change room to create a new single suite. All changing will occur in private change cubicles with zero-sightline partitions to ensure privacy for all patrons. Several universal washrooms will be included in the suite, which is intended for use by all patrons, regardless of age or gender and will meet all current accessibility regulations. - 128 - CS 02-20 December 14, 2020 Subject: Tender for CHDRC Lobby & Core Area Renovations - Construction Page 5 Two new members change rooms will also be created, sharing access to a new accessible-entry whirlpool, steam and dry saunas. Space constraints made it impossible to provide these amenities in each suite. They will be located in a common access area visible from the pool deck to ensure the visibility and safety of patrons. The common amenity space will remain limited to use by members only. Other work included relates primarily to age-related lifecycle replacements and upgrades needed to bring the core areas of the complex up to current standards, to the extent possible working with the constraints of the existing space. Request for Prequalification RFPQ-5-2019 was publically released for the Prequalification of General Contractors for the Main Entrance and Core Area Renovations at the then-named Pickering Recreation Complex. The facility has since been renamed as the Chestnut Hill Developments Recreation Complex. Based on the results of the evaluation rated criteria, five General Contractors were successfully prequalified by the City to submit bids for consideration. Tender No. T2020-16 was released to the prequalified General Contractors and was also made available for information to the public on the City’s website on September 30, 2020. An optional site visit was held on October 10, 2020, and a second visit was made available on October 27, 2020. The tender closed on November 4, 2020. Four companies submitted bids for this project. The low bidder, 1568796 Ontario Inc., O/A Renokrew, has submitted a signed copy of the City’s Health & Safety Regulation form. The Certificate of Insurance is deemed acceptable to the Manager, Budgets & Internal Audit. Community Services staff have reviewed the proposed waste management plan and site safety plan, including proposed COVID-19 precautions, and deemed them acceptable. Staff checked references as part of the pre-qualifications and have been deemed acceptable. Upon careful examination of all bids and approval of all relevant documents received, the Community Services Department recommends the acceptance of Tender No. T2020-16 submitted by 1568796 Ontario Inc., O/A Renokrew in the amount of $5,587,299.13 (HST included) and that the total net project cost of $5,635,321.00 (net HST rebate) be approved. Attachments: 1. Supply & Services Memorandum dated November 5, 2020 (Revision 1) 2. Being a By-law to authorize the Chestnut Hill Developments Recreation Complex – Lobby & Core Area Renovations – Construction project and the issuance of debentures in the amount of $5,600,000.00. - 129 - CS 02-20 December 14, 2020 Subject: Tender for CHDRC Lobby & Core Area Renovations - Construction Page 6 Prepared By: Approved/Endorsed By: Vince Plouffe Brian Duffield Manager, Facilities Capital Projects (Acting) Director, Community Services Ray Rodrigues, CPPB Manager, Supply & Services Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer BD:vp Original Signed By: Original Signed By: Original Signed By: Original Signed By: Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Interim Chief Administrative Officer - 130 - To: Brian Duffield Director, Community Services November 5, 2020 From: Justin MacDonald (Acting) Senior Purchasing Analyst, Supply & Services Copy: Administrative Assistant, Community Services Manager, Facilities Capital Projects Manager, Supply & Services Subject: Tender No. T2020-16 Tender for Main Entrance and Core Area Renovations Chestnut Hill Developments Recreation Complex Closed: Wednesday, November 4, 2020 – 2:00pm File: F-5400-001 Tender No. T2020-16 was advertised on the City’s website on Wednesday, September 30, 2020. Four 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). Summary Harmonized Sales Tax Included Bidder Total Tendered Amount After Calculation Check 1568796 Ontario Inc., O/A RENOKREW $5,587,299.13 $5,587,299.13 ROSSCLAIR Contractors Inc. $6,409,021.00 $6,409,021.00 Rutherford Contracting Ltd. $6,572,295.83 $6,572,295.83 J.J. McGuire General Contractors $7,717,900.00 $7,717,900.00 Pursuant to Information to Bidders Item 29 Pre-Condition of Award and Item 20 Tendering Specifications, the following documentation will be requested of 1568796 Ontario Inc., O/A Memo Attachment No. 1 to Report CS 02-20 - 131 - Tender No. T2020-16 Page 2 RENOKREW for your review during the evaluation stage of this tender call. Please advise if Supply & Services is to proceed with collecting the following documentation: (a)A copy of the currently dated and signed Health and Safety Policy to be used on this project; (b)A copy of the current Clearance Certificate issued by Workplace Safety & Insurance Board; (c)The City’s certificate of insurance or approved alternative form shall be completed by the Bidder’s agent, broker or insurer; (d)A Waste Management Plan; (e)Covid-19 construction and site safety plan; and (f)Such further information, as the City may request in writing. A budget of $6,000,000.00 was provided to Supply & Services for this procurement. In accordance with Purchasing Policy Item 06.04, the authority for the dollar limit as set out below excludes HST. As such, in accordance with Purchasing Policy Item 06.11, where the compliant quotation or tender meeting specifications and offering best value to the City is acceptable or where the highest scoring proposal is recommended and the estimated total purchase price is : (c)Over $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 Community Services; 4.if Items (d) and (e) are acceptable to Community Services; 5.any past work experience with low bidder 1568796 Ontario Inc., O/A RENOKREW including work location; 6.without past work experience, if reference information is acceptable to Community 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. - 132 - Tender No. T2020-16 Page 3 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. JM Attachments (2) - 133 - The Corporation of the City of Pickering By-law No. 7801/20 Being a by-law to authorize Chestnut Hill Developments Recreation Complex – Lobby & Core Area Renovations – Construction project in the City of Pickering and the issuance of debentures in the amount of $5,600,000.00 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 Chestnut Hill Developments Recreation Complex – Lobby & Core Area Renovations – Construction project; and, Whereas before authorizing renovation and construction in respect of the Chestnut Hill Development Recreation Complex – Lobby & Core Area Renovations – Construction project in the City of Pickering, 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, the Local Planning Appeal Tribunal approval is not required as per Section 401 of the Municipal Act, 2001, as amended, and the regulations made thereunder; and, And whereas after determining that the Local Planning Appeal Tribunal approval is not required, the Council of the City approved report CS 02-20 on the date hereof and awarded Tender No. T2020-16 for the Chestnut Hill Developments Recreation Complex –Lobby & Core Area Renovations – Construction project in the City of Pickering; Attachment No. 2 to Report CS 02-20 - 134 - By-law No. 7801/20 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 “Chestnut Hill Developments Recreation Complex – Lobby & Core Area Renovations – Construction”; 2.That the estimated costs of the project in the amount of $5,635,321.00 be financed as follows: a)That the sum of $5,600,000.00 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed 20 years; b)That the sum of $35,321.00 be funded by a transfer from the Rate Stabilization Reserve; and, 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 2021 or such subsequent year in which the debentures are issued and continuing thereafter until the debenture financing is repaid. By-law passed this 14th day of December, 2020 ___________________________________ David Ryan, Mayor ___________________________________ Susan Cassel, City Clerk - 135 - Report to Council Report Number: CAO 07-20 Date: December 14, 2020 From: Fiaz Jadoon Director, Economic Development & Strategic Projects Subject: Economic Development & Strategic Projects Year End Review - File: 1500-001 Recommendation: 1. That report CAO 07-20 regarding Economic Development & Strategic Projects Year End Review be received for information. Executive Summary: The mandate of the City’s Economic Development & Strategic Projects team is to focus on investment attraction, marketing, business retention & expansion, and managing strategic projects that promote and enhance the quality of life for residents and businesses in Pickering. On March 11, 2020, the World Health Organization (WHO) declared the COVID-19 outbreak a global pandemic. In collaboration with the Region of Durham, other local municipalities, Boards of Trades, the Business Advisory Centre of Durham and the Business Improvement Associations (BIA’s), a Durham Economic Task Force (DETF) was formed. The main priorities of the taskforce are to communicate critical information, support, and provide resources to local businesses during these unprecedented times. This includes organizing relevant webinars and information sessions with various levels of government, connecting businesses with Personal Protective Equipment (PPE) suppliers, creating and distributing COVID- 19 impact surveys and developing promotional campaigns to support local businesses. In addition to activities through the DETF, staff have also implemented City initiatives to address the urgent needs of Pickering’s business community, including the distribution of business recovery surveys, organizing virtual town halls, encouraging residents to shop locally, hosting business recovery podcast series, and supporting local bus iness events. As part of Council’s vision to build an innovative and vibrant city, Economic Development & Strategic Projects staff also led and supported various strategic projects throughout the year that are geared toward enhancing the economic sustaina bility and long-term growth of the City. These projects include:  working closely with the various developers on the proposed development plans along Kingston Road, and connecting with businesses that may or may not be affected;  building a strong marketing program for attracting investment to the Highway 407 corridor;  undertaking a local food engagement survey with the agri-business community to understand if there is a need for a local food strategy; - 136 - CAO 07-20 December 14, 2020 Subject: Economic Development & Strategic Projects Year End Review Page 2  initiating and leading discussions with the Region of Durham and OPG on the topics of decommissioning for the Pickering Nuclear Generating Station and the various impacts to the City and Region;  working closely with the development industry across Pickering to build a strong and vibrant vision for future developments; and  supporting the implementation of a broadband strategy for the City. Financial Implications: Not applicable. Discussion: COVID-19 Economic Development Action Plan When the World Health Organization declared the COVID-19 outbreak a global pandemic on March 11, 2020, Canadian health care policies were immediately implemented to prevent further spread of the virus. These preventative measures had direct economic consequence to the City’s business community. The Economic Development & Strategic Projects team collaborated with stakeholders in the business support ecosystem to actively respond to the economic fallout from the COVID-19 pandemic. Region of Durham COVID-19 Business Support To support and advocate for Pickering’s business community, the City is actively involved in the DETF. The DETF was created in response to the crisis and consists of Durham Region staff, local area municipalities, local Boards of Trades, the Business Advisory Centre of Durham (BACD), and the Business Improvement Associations (BIAs). The Durham Economic Task Force’s priorities were set out to be:  advocate for the urgent needs of our business community to the Provincial and Federal Governments;  provide resources and information from all levels of government to businesses;  guide small businesses through the process of accessing immediate assistance;  develop and implement support programs for businesses; and  promote Durham small businesses, particularly local stores, food and agri-businesses who are offering safe, no-contact delivery and pick-up options. In early May 2020, a Durham Business Recovery Series was created to provide support and information to businesses. To date, the sessions have addressed: mental health; navigating government funding programs; new business practices; human resource processes; and e-commerce practices. - 137 - CAO 07-20 December 14, 2020 Subject: Economic Development & Strategic Projects Year End Review Page 3 In late May 2020, DETF delivered a series of sector-specific roundtables to offer the business community a chance to provide feedback on programs required for business recovery and the opportunity to share ideas amongst the business community. In addition, DETF has distributed four business surveys throughout the pandemic to understand the impacts to the business community. Key insights from the surveys demonstrated an overwhelming impact to small businesses and increasing financial implications as health regulations consistently changed to stop the spread of the virus. As an initiative to support the Region’s vibrant downtown-area businesses, DETF launched a new online platform, Downtowns of Durham. Pickering’s Nautical Village was included as part of the platform. The initiative offers residents and visitors a chance to explore the Region’s “main street” shops, restaurants, and services virtually. In October, the second-wave of COVID-19 saw numbers of cases increase significantly. In response to the new restrictions on small businesses, DETF launched a new multi-vendor e- commerce website, Shop Durham Region . The website allows businesses to list their products online alongside other local products. The innovative online marketplace offers a single, streamlined shopping experience, where residents can go to buy products from multiple stores in a single transaction. Durham Region also approved a Regional Recovery Framework and Action Plan in June 2020, which was driven by a Regional Recovery Task Force. This Regional Recovery Task Force included members of the Durham Economic Task Force and addressed four pillars of recovery: social, built, economic and municipal. A set of 50 action items were identified and focused on the potential for job creation, community health and safety, restoration of services, support for businesses, and for vulnerable residents and long-term sustainability. More specifically, the economic pillar addressed the following actions:  support small business growth;  enable infrastructure development;  attract investment in the energy, environment & engineering industry, and innovation community; and  enable Smart Community projects. City of Pickering COVID-19 Business Support In addition to activities and support through DETF, the Economic Development & Strategic Projects team has actively communicated and connected with local businesses to provide support during the COVID-19 pandemic. Business Recovery Survey In November 2020, City staff launched a Business Recovery Survey, to understand the current impact to our business community following the second wave of COVID-19. Key insights from this survey were: - 138 - CAO 07-20 December 14, 2020 Subject: Economic Development & Strategic Projects Year End Review Page 4  respondents were largely represented in the 0-20 employee category (59 per cent);  47 per cent of businesses reported a decrease in numbers of staff since March 2020;  businesses reported financial implications, operating with physical distancing restrictions and increased costs associated with compliance, as the top 3 barriers to recovery;  businesses recommended the following initiatives the City could undertake to assist in their recovery: reducing property taxes to help offset additional costs, promotion of local business products/services, and advocating to government for rent assistance without landlord agreements;  businesses stated accelerating capital infrastructure, continued support for the creative community and event-based organizations; and  projects to revitalize the downtown/urban core, and expanding high-speed internet access as important factors in stimulating the economy post-COVID-19. Support Local Campaign To support small businesses throughout the pandemic, a ‘Support Local’ social media campaign was launched by staff in April of this year, profiling products and services offered by small businesses. To date, over 50 businesses were promoted, with many reporting an increase in customers/clients following their participation in the campaign. Staff also collaborated with the City’s Corporate Communications team to profile and support local businesses through various video campaigns that included some Members of Council. To further support our small businesses during the critical holiday season, staff launched a holiday support local campaign on social media, #SupportPickering. The campaign encourages residents to explore and support the small businesses in Pickering’s community not only through shopping locally, but through positive reviews, engaging with businesse s on social media and recommendations to friends and family. Consumers that participate in the campaign have an opportunity to win local products and services from Durham-based businesses. Business Recovery Podcast Series In June 2020, staff launched a COVID-19 Business Recovery Podcast Series through the City’s corporate YouTube channel. To date 5 podcasts were completed, featuring topics of interest to businesses during the pandemic, including financial planning, labour laws, health and safety, and the importance of supporting Black-owned businesses. Virtual Business Town Halls On April 16, 2020, Economic Development staff organized a Virtual Business Town Hall Webinar with over 150 local businesses in attendance. The webinar provided information on Pickering’s response to COVID-19, Federal and Provincial support programs as well as navigating financial assistance for businesses. Speakers included Pickering-Uxbridge MP Jennifer O’Connell, Premier of Ontario Doug Ford, Pickering-Uxbridge MPP Peter Bethlenfalvy, Deputy Mayor Kevin Ashe, and Nicole Gibson, Executive Director of Ajax-Pickering Board of Trade. - 139 - CAO 07-20 December 14, 2020 Subject: Economic Development & Strategic Projects Year End Review Page 5 On October 8, 2020, staff hosted the City’s second Annual Realtor & Developer Symposium. The event provided an update to the real estate community on various development projects currently underway in the City, and further outlined the impacts of COVID-19 to some of the City’s larger projects. Over 600 individuals from the realtor and developer community registered to attend the virtual event. On November 19, 2020, staff organized a second Virtual Business Town Hall with Pickering- Uxbridge MPP Peter Bethlenfalvy, Regional Chair John Henry, Mayor Dave Ryan, and Nicole Gibson, Executive Director of Ajax-Pickering Board of Trade. The event provided updated economic recovery strategies in response to the second-wave of COVID-19. All events were recorded and are available on the City’s social media platforms. Business Event Sponsorships Staff also collaborated with local organizations to sponsor three external business events this year to provide support and networking opportunities for the small business community during the pandemic. The first event included Heart of Networking’s 8th Annual Small Business Conference which took place on October 20, 2020. This virtual event focused on connecting small businesses through networking and sharing inspirational stories on pivoting during COVID-19. To address systemic racism in society and support Black-owned businesses in Pickering, the City partnered with the Durham Region Association of Black Professionals & Entrepreneurs (DRABPE). This partnership involved the sponsorship of their first virtual business expo on October 24, 2020. The expo included seminars, workshops, a tradeshow and an opportunity for attendees to network with emerging and established Black business owners and professionals. Finally, to celebrate, inspire and support entrepreneurship during these unprecedented times, staff partnered with the Business Advisory Centre of Durham (BACD) to sponsor ‘Do It in Durham’. The event takes place during Global Entrepreneurship Week, November 16-20, and provides business innovators and start-ups with a host of information sessions, networking events and resources. City of Pickering Economic Development Program & Strategic Projects With the emergence of the COVID-19 pandemic and the significant impact to Pickering’s business community, the Economic Development & Strategic Projects team shifted priorities to mobilize more resources towards a cohesive COVID-19 recovery program for businesses in Pickering. In addition to providing immediate support to the business community, staff continued to play a key role in several strategic projects that ultimately support the vision for economic prosperity for not only existing and new businesses relocating t o Pickering, but also the residents of Pickering. In collaboration with City Development, staff worked closely with the business community to understand the impacts (if any) to the small and medium sized businesses based on the proposed development plans to the Kingston Road corridor. Furthermore, staff engaged with the development community to understand and promote the need for off ice and retail space within the - 140 - CAO 07-20 December 14, 2020 Subject: Economic Development & Strategic Projects Year End Review Page 6 development plans. Pickering holds one of the lowest vacancy rate across the G reater Toronto Area for office space. To achieve Council’s mandate for attracting investment and jobs to the City, the Highway 407 Corridor is the City’s greatest opportunity to attract businesses who are looking to expand and relocate to Pickering in the years to come. With the construction of Kubota’s new head office and assembly facility well underway, the company is targeting spring 2021 for occupancy. The construction of the facility has been a strong catalyst for investment to the Innovation Corridor. For many, the proximity to the City of Toronto (Ontario’s Economic Engine), Region of York, and a potential future Airport are the main factors in their decision-making. Following a motion from Council in June of 2020, staff were directed to embark on an engagement process as the initial stage for a potential local food strategy. In August of this year, staff developed and circulated a survey to the farming operators in Pickering to determine the desire and need to distribute food locally. In collaboration with City Development staff, Durham Region’s Agriculture & Rural Affairs team, and the Ajax-Pickering Board of Trade, surveys were distributed to over 111 potential farming operators in Pickering via email and regular mail. Staff promoted the survey through curbside mobile signs in two locations along Highway 7, social media platforms, and contacting farmers directly via telephone. In total, six agri-businesses completed the survey. Key insights from the survey were:  four agricultural businesses identified themselves as primary suppliers of local food;  respondents identified regulatory barriers, limited processing capability, and a poor local distribution system as the top barriers to supplying their products locally; and  respondents identified promoting ‘Buy Local’ campaigns, improving infrastructure, and supporting the creation of a food hub/distribution centre as potential initiatives to enhance the local food economy. Based on the results of the survey and the small number of respondents, staff will further attempt to reach out to farming operators in 2021 to seek their input. Following this, staff will bring forward a recommendation report before Council to decide if the City should pursue a City of Pickering local food strategy, or continue to collaborate with Durham Region’s Agriculture & Rural Affairs team to support local food and assist agri-businesses across the Region. Further, Pickering’s Nuclear Generating Station (PNGS) has been operating safely and reliably in the City of Pickering for almost 50 years. As one of Canada's largest power generation stations, PNGS is one of the largest employers in the Region and Pickering’s largest economic base. To prepare for the upcoming retirement of PNGS in 2025, staff are regularly engaged with Regional and OPG staff to study the economic activity produced by OPG in the City and across the Region. In September 2020, the City issued a detailed Request for Proposal, calling for qualified and experienced proponents to submit proposals for the study of the financial, economic, and social impacts of the retirement of PNGS. Staff will bring forth a report to Council in early 2021 to seek approval to award the contract to the recommended consulting firm. - 141 - CAO 07-20 December 14, 2020 Subject: Economic Development & Strategic Projects Year End Review Page 7 Broadband access is essential for the well-being and economic competitiveness of the City’s residents, businesses and institutions. To ensure equitable and affordable broadband access in Pickering’s rural communities, staff have been working closely with internal departments and the Region of Durham’s Broadband Specialist to provide input on Regional initiatives and to ensure that the City’s broadband strategy aligns with the Region’s. Earlier this year the Region launched a broadband survey to all businesses and residents to learn more about their current broadband situations. The survey received over 2,700 responses, with results expected to be released in the coming weeks. The survey responses will shed further light on the geographic areas experiencing connectivity issues and the nature of the problems. The City has also taken the initiative to apply for the Improving Connectivity for Ontario (ICON) funding to help bring broadband infrastructure in Pickering’s rural communities. The approval of this funding will help increase connectivity to help both residents and businesses alike. Prepared By: Approved/Endorsed By: Aneesa Haniff Fiaz Jadoon, Director, Economic Senior Economic Development Officer Development & Strategic Projects Taaha Javed Economic Development & Strategic Projects Associate AH:ah Recommended for the consideration of Pickering City Council Marisa Carpino, M.A. Interim Chief Administrative Officer Original Signed By:Original Signed By: Original Signed By: Original Signed By: - 142 - Report to Council Report Number: ENG 15-20 Date: December 14, 2020 From: Richard Holborn Director, Engineering Services Subject: Request for Additional Funding for Consulting Services - Beachfront Park Rehabilitation & Needs Assessment Study - File: A-1440 Recommendation: 1. That the additional fee proposal as submitted by the MBTW Group Inc. in the gross amount of $15,086.00 (HST included) and a net amount of $13,585.00 (net of HST rebate) for the increase in scope of work for the Beachfront Park Rehabilitation & Needs Assessment Study, and associated costs for Geotechnical Investigations in the gross amount of $1,718.00 (HST included) and a net amount of $1,547.00 (net of HST rebate) be accepted; 2. That the Director, Finance & Treasurer be authorized to finance the increase in the total net project cost in the amount of $15,132.00 as follows: a) The sum of $10,214.00 by a transfer from the Development Charges Growth-Related Studies Reserve Fund; b) The sum of $4,918.00 from property taxes; and, 3. That the appropriate officials of the City of Pickering to authorized to take the necessary actions as indicated in this report. Executive Summary: The MBTW Group Inc. (MBTW) was retained for the preparation of the Beachfront Park Rehabilitation & Needs Assessment study in the amount of $49,780.00 (HST extra) in December 2019. The MBTW proposal was approved by the Treasurer and Chief Administrative Officer through a memo dated December 4, 2019 (Attachment #1) in accordance with the Purchasing Policy Item 10.03 (b). The study is well underway and has involved consultation with the Toronto and Region Conservation Authority (TRCA). In order for TRCA to complete their preliminary review of the concept plans, some additional studies and information are required that go beyond the consultants original scope of work. The cost to complete this additional work by MBTW is estimated at $13,350.00 (excluding HST). Geotechnical information has also been requested for the beach area in order to determine the future possible rate of erosion. GHD have provided a proposal for soil sampling and analysis at an estimated cost of $1,520.00 (excluding HST). The revised total net project cost for this phase of the study is estimated to be approximately $65,788.00. In accordance with the Purchasing Policy Item 10.03 (c), since the award to MBTW will now exceed $50,000, approval for the increase in scope is required by Council. - 143 - ENG 15-20 December 14, 2020 Subject: Request for Additional Funding for Consulting Services Beachfront Park Rehabilitation & Needs Assessment Study Page 2 Financial Implications: 1. Additional Fee Proposal Amount Fee Proposal dated November 18, 2020 Scope Change for Beachfront Park Rehabilitation & Needs Assessment HST (13%) Total Gross Additional Fee Cost HST Rebate (11.24%) Total Net Additional Fee Cost $13,350.00 1,736.00 15,086.00 1,501.00 $13,585.00 2. Estimated Project Costing Summary Original amount for Beachfront Park Rehabilitation & Needs Assessment $49,780.00 Scope Change for Beachfront Park Rehabilitation & Needs Assessment 13,350.00 Geotechnical Investigations (GHD) Subtotal HST (13%) Total Revised Gross Project Cost HST Rebate (11.24%) Total Net Project Cost 1,520.00 $64,650.00 8,405.00 73,055.00 (7,267.00) $65,788.00 3. Source of Funds (2020 Current Budget – Uncommitted funds in 2290.2392) Account Code Source of Funds Required 2290.2392.0000 Development Charges Reserve Fund – Growth Related Studies (67.5%) $10,214.00 Property Taxes (32.5%) 4,918.00 Total Additional Required Funds $15,132.00 Staff recommend the approval of an increase in the total net project cost to $65,788.00 from the amount that was approved by the Chief Administrative Officer in a memo dated December 4, 2019. Due to the increase in scope, the award to MBTW will exceed $50,000 and in accordance with the Purchasing Policy, item 10.03 (c), consulting and professional services above $50,000 is subject to the additional approval of Council. In accordance with the Purchasing Policy item 10.03 (b),the original award of $49,780.00 (HST extra) to MBTW was previously approved by the Manager, Supply & Services, Director, Engineering Services, Treasurer and the Chief Administrative Officer. Council approval is being sought at this time for the increase in the total net project cost amount of $15,132.00 in order to satisfy additional study requirements as requested by the TRCA, and to increase the award to MBTW as the amount now exceeds $50,000.00. - 144 - ENG 15-20 December 14, 2020 Subject: Request for Additional Funding for Consulting Services Beachfront Park Rehabilitation & Needs Assessment Study Page 3 Discussion: The MBTW Group Inc. (MBTW) was retained for the preparation of the Beachfront Park Rehabilitation & Needs Assessment study in the amount of $49,780.00 (HST extra) in December 2019. The MBTW proposal was approved by the Treasurer and Chief Administrative Officer through a memo dated December 4, 2019 in accordance with the Purchasing Policy. Item 10.03 (b). The study is well underway and has involved consultation with City staff and the Toronto and Region Conservation Authority (TRCA). TRCA has reviewed the concept plans prepared by MBTW and has requested for some additional studies and information that is beyond the consultants original scope of work. This work includes the following: • review of other Coastal Engineering reports prepared by Baird Engineering; • assess flood hazard in the vicinity of the proposed washroom building; • site walk and additional meetings with the TRCA ; • test pit excavations (review geotechnical studies); and, • update of Flood Hazard report. Staff would like to receive general approval from TRCA on the concept plans before proceeding with the next phase of the Beachfront Park Rehabilitation & Needs Assessment study which includes stakeholder and public consultation. The additional work required to satisfy the TRCA request would be carried out by Shoreplan Engineering, the Coastal Engineering firm who is a sub-consultant for MBTW. Shoreplan’s costs to complete this work is estimated at $13,350.00 (excluding HST). Geotechnical information has also been requested for the beach area. A gradation analysis, which looks at the size and layering of the beach sand and gravel, is required in order to determine the possible future rate of erosion of the beach area. GHD have provided a proposal for the soil sampling and sieve analysis at an estimated cost of $1,520.00 (excluding HST). This study has been included in the 2017 DC Background Study, therefore it is eligible for DC funding. Funds in the amount of $100,000 were approved in the 2019 Current Budget (account 2290.2392.0000) for a Waterfront Park Needs Assessment. As the award to MBTW was only $49,780.00 (HST extra) the uncommitted funds were returned to source at the end of 2019. The additional project cost for the increase in scope is proposed to be funded from available uncommitted funds in account 2290.2392.0000 of the 2020 Current Budget with the source of financing being 67.5 per cent Development Charges Growth-Related Studies Reserve Fund and 32.5 per cent from property taxes. - 145 - ENG 15-20 December 14, 2020 Subject: Request for Additional Funding for Consulting Services Beachfront Park Rehabilitation & Needs Assessment Study Page 4 In accordance with Purchasing Policy Item 10.03, the Manager may obtain the services of a particular consultant selected by the initiating Director without going through a competitive process. Where the funds are available in the approved budget and the project or annual cost of a consulting or professional service assignment is expected to be: c) Above $50,000 is subject to the additional approval of Council. The initiating Director shall submit the Report to Council to obtain approval. The revised total net project cost for this phase of the study is $65,788.00.The revised award to MBTW now falls within this level of approval. Attachments: 1. Approved Memo – Consulting Services, the MBTW Group Inc. – Beachfront Park Rehabilitation & Needs Assessment, dated December 4, 2019 2. Additional Services Request No. 1 from the MBTW Group Inc., dated November 18, 2020 3. Location Map - 146 - ENG 15-20 December 14, 2020 Subject: Request for Additional Funding for Consulting Services Beachfront Park Rehabilitation & Needs Assessment Study Page 5 Approved/Endorsed By: Original Signed By: Richard Holborn, P.Eng. Director, Engineering Services Original Signed By: Stan Karwowski, MBA CPA CMA Director, Finance & Treasurer Original Signed By: Ray Rodrigues, CPPB Manager, Supply & Services Prepared By: Original Signed By: Arnold Mostert, OALA Senior Coordinator, Landscape & Parks Development Original Signed By: Scott Booker Manager, Capital Projects & Infrastructure AM:mjh Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Interim Chief Administrative Officer - 147 - Attachment #1 to Report #ENG15-20' , -C~of-PJCKERJNG To: Richard Holborn Director, Engineering Services Ray Rodrigues Manager, Supply & Services From: Scott Booker Manager, Capital Projects & Infrastructure Copy: Senior Coordinator, Landscape & Parks Development Subject: Consulting Services, The MBTW Group Beachfront Park Rehabilitation & Needs Assessment File: A-1440 Recommendation Memo December 4, 2019 That The MBTW Group be retained for the preparation of the Beachfront Park Rehabilitation & Needs Assessment study in the amount of $49,780.00 (HST extra), as a consulting service as provided for in the Purchasing Policy. Background Beachfront Park, which includes the waterfront lands from the Frenchman's Bay harbour entrance to Alex Robertson Park, has experienced an increase in the number of visitors annually. Many of the parks site features had previously been identified as now being under capacity and as such, a Waterfront Parks Needs Assessment study was requested. With the record high lake levels, wind and wave action that the park has experienced in 2017 and 2019, many of the site features have been damaged and/or removed due to their unsafe conditions. The playground structure, swings and volleyball courts were removed earlier this year and the boardwalk is slated for removal as it has been damaged beyond repair. On May 27, 2019, a Notice of Motion regarding the Re-Creation of Beachfront Park was passed by Council (Resolution #99/19). The Notice of Motion directed staff "to engage subject experts, residents, and community partners to begin discussions in 2020 on the re-creation of a new p_ark plan". The MBTW Group, who previously updated the Master Plan for Rotary Frenchman's Bay West Park as well as the design, tender and contract administration for the first phase of construction, were requested to provide a fee proposal to complete a Rehabilitation & Needs Assessment Study for Beachfront Park. Their project team includes Shoreplan Engineering, the coastal engineering firm who they worked with on Rotary Frenchman's Bay West Park project and who designed the Frenchman's Bay harbour entrance. Their team's knowledge of the Pickering . I I - 148 - waterfront and proven record of these previous assignments, make them a natural fit for completing this study. The MBTW Group and Shoreplan Engineering, will be working with City of Pickering and Toronto and Region Conservation Authority (TRCA) staff to determine the best approach for park repairs and rehabilitation with consideration to the potential of increased public use of the park due to population growth. The park's existing conditions will be reviewed and a land survey and bathymetric survey of near shore and mid shore in-water soundings will be taken , to provide accurate and current data of the beach conditions. This data will provide the basis for the modelling of nearshore wave transformations and wave run up analysis at the presently designated datum high water level and projected "overload" level for the increased water levels that we experienced in 2017 and 2019. Options for the reconstruction and/or re-routing of the Waterfront Trail will be investigated. Design solutions for other park amenities will be recommended to address the anticipated shift in the intensity of park use in response to population growth . The design will need to address both current and future park level of service expectations as well as provisions for inclusive and barrier-free design. Stakeholder consultation meetings will be held with City staff from the Engineering Services Department and Community Services Department, c;1~ well as TRCA and Ontario Power Generation (OPG) as landowners and approval agencies . Based on input from the stakeholder groups, a preferred solution will be prepared along with associated costing. The material prepared will be suitable to engage residents and community partners for review and input and will form a good basis to take this project into detailed design and consideration for future year budgeting purposes. Funds in the amount of $100,000 were approved in the 2019 Current Budget (account 2290.2392.0000) for a Waterfront Park Needs Assessment. In accordance with Purchasing Policy Item 10.03, the Manager may obtain the services of a particular consultant selected by the initiating Director without going through a competitive process. Where the funds are available in the approved budget and the project or annual cost of a consulting or profess ional service assignment is expected to be: (b) Between $30,000 to $50,000 is subject to the additional approval of the Treasurer and CAO. The sum total cost of the assignment described herein is $49,780.00 (HST extra) and falls within this level of approval. ' AM :mjh Attachment The MBTW Group Proposal dated November 27, 2019 December 4, 2019 Page 2 of 3 Consulting Services The MBTW Group Beachfront Park Rehabilitation & Needs Assessment - 149 - , ' Prepared By: Arnold Mostert, OALA Senior Coordinator, Landscape & Parks Development ~J:::1i1,~ Scott Booker Manager, Capital Projects & Infrastructure Approval Tony Prevedel , P .Eng . Chief Administrative Officer December 4, 2019 Consulting Services The MBTW Group Approved/Endorsed By: ~ .... • ...... ~lb ..... orn, P. Eng. ~~~. Engineering Services Stan Karwowski, MBA CPA CMA Director, Finance & Treasure Ray Rodr ues, CPPB Manager, Supply & Services ~-t&,2.off Beachfront Park Rehabilitation & Needs Assessment Page 3 of 3 - 150 - T 416.449.7767 F 416.449.1803 255 Wicksteed Ave., Unit 1A, Toronto, ON, Canada M4H 1G8 www.mbtw-wai.com landscape architecture urban design design guidance golf design leisure design November 18, 2020 Attention: Arnold Mostert, OALA, Senior Coordinator Landscape & Parks Development Engineering Services City of Pickering Via Email: amostert@pickering.ca Re: ADDITIONAL SERVICES REQUEST No.1: Beachfront Park Rehabilitation MBTW Project Number CPG006 Dear Arnold, As per recent discussions, please find below a summary of Additional Services required to fully address project related commentary submitted by the TRCA. The scope of the Additional Services relates to coastal engineering expertise, which we propose be supplied by Shoreplan Engineering. The scope of work includes: a)Review of other coastal engineering reports prepared by Baird Engineering and supplied by the TRCA; b)Assess the Flood Hazard in the vicinity of the proposed washroom building; c)Site walk with the TRCA (already completed); d)Additional meeting allowance; e) Test pit excavations and comments; and f)Update of Flood Hazard report. Fees: Estimated fee provided by Shoreplan Engineering for the above tasks is $13,350.00. Shoreplan’s detailed fee estimate can be provided upon request. Closure: The proposal outlines our understanding of the scope as of the date of this letter. Please do not hesitate to contact our office should you have any questions or require clarifications. We look forward to hearing from you. Yours Truly, The MBTW Group Jana Joyce, OALA, CSLA, ASLA Principal, Senior Landscape Architect MBTW Group 255 Wicksteed Ave., Unit 1A Toronto, ON, Canada M4H 1G8 T 416.449.7767 x 252 Attachment #2 to Report #ENG 15-20 - 151 - LIVERPOOL ROADANNLAND STREET WHARF STREET 1:5,000 SCALE: Engineering Services Department Beachfront ParkLocation MapDecember 3, 2020 DATE: q Frenchman'sBay Lake Ontario Attachment #3 to Report #ENG 15-20 - 152 - Report to Council Report Number: PLN 32-20 Date: December 14, 2020 From: Kyle Bentley Director, City Development & CBO Subject: Two-year Period Exemption Request for Minor Variance Application P/CA 66/20 Trillium Housing Oak Non-Profit Corporation Part Lot 18, Concession 3 Now Part 1, 40R-29457 (2635 William Jackson Drive) Recommendation: 1. That Council grant an exemption in accordance with Section 45 (1.4) of the Planning Act, R.S.O. 1990; c. P.13 as amended, and permit the Committee of Adjustment to consider Minor Variance Application P/CA 66/20 resulting from the further processing of the Site Plan or Building Permit applications, submitted by Trillium Housing Oak Non-Profit Corporation, for land municipally known as 2635 William Jackson Drive, before the second anniversary of the day on which an applicant-initiated zoning by-law amendment was enacted for the subject lands. Executive Summary: This report recommends that Council adopt a resolution in accordance with Section 45 (1.4) of the Planning Act, as amended, permitting the Committee of Adjustment to consider Minor Variance Application P/CA 66/20 submitted by Trillium Housing Oak Non-Profit Corporation, owner of 2635 William Jackson Drive (see Location Map, Attachment #1). The applicant is requesting approval of a minor variance application to permit air conditioning units to be located within the front yard for 5 residential blocks along William Jackson Drive and Earl Grey Avenue, whereas the site-specific zoning by-law amendment prohibits air conditioning units to be located between the front wall of a building or a dwelling and a public street. Financial Implications: There are no direct financial implications arising from Council’s adoption of the recommendation of this report. 1. Discussion: Bill 73, the Smart Growth for Our Communities Act, 2015, amended the Planning Act by removing the ability for an applicant to apply for a minor variance for 2 years following the passing of an applicant-initiated zoning by-law amendment. However, the Planning Act changes also permit a municipal Council to allow minor variance applications to proceed on a case-by-case basis by Council resolution. The Province indicated that the intent of the amendment is to prevent, for a 2 year period, zoning provisions that Council determines to be important from being reversed through the minor variance process. - 153 - Report: PLN 32-20 December 14, 2020 Subject: Trillium Housing Oak Non-Profit Corporation Page 2 2. Proposed Residential Development In 2018, Trillium Housing Oak Non-Profit Corporation submitted applications for Official Plan Amendment and Zoning By-law Amendment for lands located at the southeast corner of William Jackson Drive and Earl Grey Avenue within the Duffin Heights Neighbourhood (see Location Map, Attachment #1). The applicant proposes to develop the subject lands for a residential condominium development consisting of 13 blocks for 216 stacked townhouse units (see Submitted Site Plan, Attachment #2). On June 24, 2019, City Council passed By-law 7705/19 to adopt Amendment 37 to the Pickering Official Plan. The amendment re-designated the subject lands from “Urban Residential Areas – Medium Density Areas” to “Urban Residential Areas – High Density Areas”, and included a site-specific exemption to permit a maximum density of 161 units per net hectare. Council also passed By-law 7706/19 to rezone the subject lands from “C1-ES” to “MD-HD-1”, “NP” and “OS-HL”. Shortly after these approvals, the applicant submitted a Site Plan Application for the development of the lands. During the review of the site plan, staff noted that the location of air conditioning units between the front wall of the stacked townhouse blocks (Buildings A, B, C, J and K) and William Jackson Drive and Earl Grey Avenue, did not comply with the site-specific zoning by-law approved by Council. 3. Minor Variance Application P/CA 66/20, Trillium Housing Oak Non-Profit Corporation On October 14, 2020, the applicant submitted Minor Variance Application P/CA 66/20 requesting that Section 5.(2)(g)(i) of Zoning By-law 7706/19 be varied to permit air conditioning units in the front yard between the front wall of a building or dwelling and a street. The minor variance application falls within the 2 year “time out” provision of the Planning Act. A Council resolution is required to enable the Committee of Adjustment to consider this minor variance application. The applicant has indicated that the variance is required as the layout of the stacked townhouse building is such that the units on the upper floors have a back-to-back configuration. As a result, certain units only have frontage or access to the front of the building, and it is therefore difficult to avoid locating air conditioning units between the front main wall and the street. The applicant is proposing to locate the air conditioning units at grade for the lower units, and on balconies for the upper units. The purpose of restricting the location of air conditioning units is to shield views of the units from a public street and to maintain a high-quality public realm. It is proposed that the air conditioning units located between the main front wall and William Jackson Drive and Earl Grey Avenue will be screened with decorative metal screens shielding all views from the municipal right-of-ways. The decorative metal screens will be similar in style and colour to the buildings and balcony railings to provide an attractive façade and streetscape. - 154 - Report: PLN 32-20 December 14, 2020 Subject: Trillium Housing Oak Non-Profit Corporation Page 3 The proposed variance is in keeping with the general intent and purpose of the City’s Official Plan and Zoning By-law, which is to permit primarily housing and related uses. Staff have reviewed the site plan application and consider the proposed screening of the air conditioning units to fit in with the architectural design of the building and maintain a high quality public realm. The requested variance is considered to be minor in nature and appropriate for the site. 4. Conclusion Staff are of the opinion that the submitted minor variance application will facilitate the intended use of the subject lands as residential condominium development, and is in keeping with the general intent and purpose of the City’s Official Plan and the site specific zoning by-law amendment. It is recommended that Council grant an exemption in accordance with Section 45 (1.4) of the Planning Act and permit Minor Variance Application P/CA 66/20, submitted by Trillium Housing Oak Non-Profit Corporation, to be considered by the Committee of Adjustment resulting from the further processing of the site plan or building permit applications. - 155 - Report: PLN 32-20 December 14, 2020 Subject: Trillium Housing Oak Non-Profit Corporation Page 4 Attachments: 1.Location Map 2.Submitted Site Plan Prepared By: Original Signed By: Isabel Lima Planner I Original Signed By: Nilesh Surti, MCIP, RPP Manager, Development Review & Urban Design IL:ld Approved/Endorsed By: Original Signed By: Catherine Rose, MCIP, RPP Chief Planner Original Signed By: Kyle Bentley, P. Eng. Director, City Development & CBO Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Interim Chief Administrative Officer - 156 - WilliamJacksonDriveAdirondack Chase Grenwich Glen PureSprings Boulevard B ronzedaleS tr eet Huckleberry Crossing Liat ris DriveCarousel DriveMisthollow Drive Byford Street Penny LaneRex Heath DriveZents Drive Tally Street Kalmar Avenue Hayden LaneNantucket ChaseE arl Grey A v enueBoston GlenPark hurs t CrescentBrock RoadCreekside Park © The Corporation of the City of Pickering Produced (in part) under license from: © Queens Printer, Ontario Ministry of Natural Resources. All rights reserved.;© Her Majesty the Queen in Right of Canada, Department of Natural Resources. All rights reserved.; © Teranet Enterprises Inc. and its suppliers all rights reserved.; © Municipal Property Assessment Corporation and its suppliers all rights reserved.; City Development Department Location Map File: Applicant: Property Description: P/CA 66/20 Date: Nov. 05, 2020 ¯ E Trillium Housing Oak Non-Profit Corporation Pt Lt 18, Con 3 Now Pt 1, 40R-29457 (2635 William Jackson Drive) Subject Lands L:\PLANNING\01-MapFiles\PCA\2020\PCA 66-20 Trillium Housing\PCA66-20_LocationMap.mxd 1:4,000 SCALE: THIS IS NOT A PLAN OF SURVEY. Attachment #1 to Report #PLN 32-20 - 157 - Submitted Site Plan File No: P/CA 66/20 Applicant: Trillium Housing Oak Non-Profit Corporation Property Description: Pt Lt 18, Con 3 Now Pt 1, 40R-29457 (2635 William Jackson Drive) FULL SCALE COPIES OF THIS PLAN ARE AVAILABLE FOR VIEWING AT THE CITY OF PICKERING CITY DEVELOPMENT DEPARTMENT.Date: Dec 2, 2020 Building C Building B Building A Building K Building J to permit air conditioning units in the front yard between the front wall of a building or dwelling and a street Attachment #2 to Report #PLN 32-20 - 158 - Report to Council Report Number: FIN 19-20 Date: December 14, 2020 From: Stan Karwowski Director, Finance & Treasurer Subject: 2020 Development Charges Update Study - File: F-4920-001 Recommendation: 1. That Report FIN 19-20 of the Director, Finance & Treasurer be received; 2. That Council receive for information and approve the 2020 Development Charges Update Study-Office Consolidation of October 15, 2020 and November 2, 2020 Addendum, prepared by Watson & Associates Econom ists Ltd. dated November 2, 2020; 3. That the originally proposed By-law has not been modified since the public meeting on December 7, 2019 and Council confirms that no further public meeting under the Development Charges Act, 1997 (s.12) is necessary as a result; 4. That the draft By-law attached to this report be enacted; 5. That the City Clerk be instructed to undertake the By-law passage notification provisions under the Development Charges Act, 1997 and Ontario Regulation 82/98; 6. That subject to Council approval of the 2021 Budget, Council approve the hiring of the firm Watson & Associates Economists Ltd., to be retained for the 2021/2022 Development Charges Background Study and the Community Benefit Charge Study at a cost not to exceed $70,000 to be financed from the Development Charges Reserve Funds-Growth-Related Studies; and 7. That the appropriate City of Pickering officials be authorized to take the actions as indicated in this report. Executive Summary: Council passed the 2017 Development Charges (DC) Background Study on December 11, 2017 and the corresponding By-law No.7595/17. In the fall of 2019, the DC By-law was amended mainly to reflect the revised costs for the City Centre project resulting in a higher level of DC funding. The current DC Update Study provides for a further amendment to the City’s DC By- laws. The purpose of the amendment is to provide for updates to the underlying capital cost estimates and to include additional capital needs to those included within the City’s - 159 - FIN 19-20 December 14, 2020 Subject: 2020 Development Charges Update Study Page 2 ______________________________________________________________________ 2019 DC Update Study for Transportation Services (roads and bridges), Administration Studies, Parks and Recreation Services, and Library Services. This DC Update Study also provides for the removal of the statutory 10 percent deduction for Parks and Recreation Services, Library Services, and Administration Studies as identified in Bill 197, COVID-19 Economic Recovery Act, 2020. Moreover, amendments to the Development Charges Act with regard to the timing of the calculation and collection of DC and statutory exemptions will also be addressed through this DC Update Study and By-law amendment. The new Development Charge By-law will, if passed by Council, be effective on December 15, 2020. Financial Implications: The proposed Development Charges Update Study adds DC dollar funding for the Notion Road/Squires Beach Road 401 Crossing project, and smaller increases for the removal of the 10 percent statutory deduction associated with the DC “soft services”. The financial impact of the removal of the 10 percent statutory deduction as it relates to the City Centre project is presented below. Table One DC Recoverable Costs in 2017 Dollars Comparison of City Centre DC Funding 2019 Update Study 2020 Update Study Increase Arts Centre $12,170,369 $13,466,841 $1,296,472 Youth & Seniors Centre 49,018,115 55,683,609 6,665,494 New Central Library 19,478,356 21,642,616 2,164,260 Total $80,666,840 $90,793,066 $10,126,226 The original 2017 DC Background Study is denominated in 2017 dollars and the above table reflects this approach for comparison purposes. In today’s dollars, the increase in DC funding is $11 million. Therefore, approximately $11.1 million in taxpayer funde d cost has been shifted to the DC funding stream. Parks and Recreation Services Under the DC Parks and Recreation Services category, there are several projects in addition to the City Centre project that will benefit from the removal of the 10 percent statutory deduction. The net benefit to the City is an increase of $18.8 million that will now be funded through DC fees. This increase in eligible costs would increase the DC fee by $849 per single or semi- detached dwelling unit. Library Services The City has identified the need to acquire a Library Services Outreach Vehicle to provide service to communities as the City develops in advance of the construction of - 160 - FIN 19-20 December 14, 2020 Subject: 2020 Development Charges Update Study Page 3 ______________________________________________________________________ new facilities. The estimated cost of the vehicle is $220,000 . In addition, the DC eligible costs have been revised for Library capital projects to account for the removal of the statutory 10 percent deduction. The above noted changes increase the DC recoverable costs for Library Services by $3.1 million. This increase in eligible costs would increase the DC fee by $137 per single and semi-detached dwelling unit. Transportation Services The Transportation DC Capital program has been updated to reflect the proposed construction of the Notion Road/Squires Beach Road 401 Crossing project, and other updates to cost estimates. The Notion Road/Squires Beach Road 401 Crossing project has been identified at a capital cost of $71.2 million (2020$) including construction and utility relocation costs identified in the Municipal Class Environmental Assessment for the crossing prepared by AECOM as well as anticipated design and land acquisition costs. Approximately 24 percent of the growth-related costs have been deducted as a post period benefit (beyond 2031). When the City undertakes the next full review of the DC Background Study in 2022, the post period benefits costs will be considered for inclusion in the DC fees. Further changes to the DC capital program include the removal of Transportation Services 2019 projects #12 (Notion Road-Kingston to 350m South), #28 (Kellino Street- Squires Beach to Church), and #29 (Squires Beach Road-Bayly to CNR Tracks) within the 2019 Update Study as these projects will be replaced by the construction of the Notion Road/Squires Beach Road 401 Crossing. The removal of these p rojects decreases the DC recoverable costs by $2.8 million. Lastly, the City has received updated cost estimates for the 2019 project #44 (Walnut Lane Extension – construction and contract admin) of $5.7 million compared to $2.5 million in the 2019 Update Study. Please note, for comparison purposes, these cost figures are stated in 2017 dollars. Taking into account the above noted changes, and after deducting existing DC reserve fund, this would increase the DC fee by $3,041 per single and semi-detached dwelling unit. Growth-Related Studies (Consulting) The studies included in the City’s 2019 Update Study under the Administration Studies Service have been included in the DC calculation under the Growth -Related Studies class of services. The studies include both service specific studies that pertain to one of the DC eligible services included in the DC by-law or in some cases more general growth-related studies. For general growth-related studies, a deduction of 10 percent has been applied to recognize the extent to which the studies relate to non-DC eligible services. - 161 - FIN 19-20 December 14, 2020 Subject: 2020 Development Charges Update Study Page 4 ______________________________________________________________________ The gross capital cost of these studies is $13.8 million including $1.0 million in additional study costs for the Geographic Information Systems (GIS) Corporate Strategic Plan, the Northeast Pickering (Veraine) Land Use Studies, and the 5-year Capital and Operating Cost Financial Impact Analysis. Deductions of $4.9 million for the benefit to existing development and $211,600 for the benefit to development beyond the forecast period (North East Pickering (Veraine) Land Use Studies) have been applied. After deducting a further $510,000 to recognize the portion of general growth -related studies to DC- ineligible services (as mentioned above) and $263,200 for other contributions towards the growth-related costs, the net growth-related costs are $7.9 million. The existing reserve fund deficit of $673,900 has been added resulting in a net DC-eligible cost of $8.6 million to be included in the calculation of the charge. This net impact would increase the DC fee by $13 per single or semi-detached dwelling unit. Discussion: Table One provides a comparison of the current DC rate to the proposed DC rate for a single and semi-detached home. Table Two provides the proposed DC rates for residential apartment dwellings, and other dwellings. Table One Single and Semi-Detached Residential Rate Comparison of Current Rates to Proposed Rates (in 2020 Dollars) Service Current Proposed December 15, 2020 Change Increase/ (Decrease) Municipal Wide Services: Other Services Related to a Highway $483 $483 - Protection Services 983 983 - Parks and Recreation Services 6,639 7,488 $849 Library Services 1,100 1,237 137 Growth-Related Studies 315 328 13 Stormwater Management 316 316 - Total Municipal Wide Services (Line A) $9,836 $10,835 $999 Outside of Seaton Lands Transportation 1 7,159 10,200 3,041 Total Outside of Seaton Lands (Line B) $7,159 $10,200 $3,041 Rest of Pickering (Line A+B) $16,995 $21,035 $4,040 Seaton (Line A) $9,836 $10,835 $999 1 Does not apply to Seaton Lands, Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning provision of Transportation requirements in addition to other funding contributions. - 162 - FIN 19-20 December 14, 2020 Subject: 2020 Development Charges Update Study Page 5 ______________________________________________________________________ Table Two Proposed Apartment Dwellings and Other Dwellings Residential Rates (in 2020 Dollars) Service Apartment Dwellings with 2 or more bedrooms Apartment Dwellings with less than 2 bedrooms Other Dwellings Municipal Wide Services: Other Services Related to a Highway 306 216 391 Protection Services 621 440 795 Parks and Recreation Services 4,730 3,352 6,044 Library Services 782 554 999 Growth-Related Studies 207 147 266 Stormwater Management 200 142 256 Total Municipal Wide Services (Line A) $6,846 $4,851 8,751 Outside of Seaton Lands Transportation 1 6,444 4,565 8,235 Total Outside of Seaton Lands (Line B) $6,444 $4,565 8,235 Rest of Pickering (Line A+B) $13,290 $9,416 $16,986 Seaton (Line A) $6,846 4,851 $8,751 1 Does not apply to Seaton Lands, Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning provision of Transportation requirements in addition to other funding contributions For either a single or semi-detached home, the proposed DC fee increase for the “Rest of Pickering” is $4,040 or 24 percent. For Seaton area, the DC fee increase is $999 or 10 percent. While the percentage increases may appear to be above average, the more important factor to consider is what the overall total DC fee is charged and how does this fee compare to other municipalities. As stated earlier, Pickering still retains its competitive position in relation to its GTA neighbours. As presented in Table One, the DC funding increase as a result of this Update Study is being reflected in the Parks and Recreation Services, Library Services, Growth -Related Studies, and Transportation Services categories. The major purpose of this DC Update is to increase the DC fees to fund the DC share of costs for the Notion Road/Squires Beach Road 401 Crossing project. - 163 - FIN 19-20 December 14, 2020 Subject: 2020 Development Charges Update Study Page 6 ______________________________________________________________________ Table Three Non-Residential Rate Comparison of Current Rates to Proposed Rates (in 2020 Dollars) Service $ Per Sq. ft. of Floor Area 2 Non-Residential (per Net Ha of Prestige Employment Land in Seaton) Current Proposed Dec 15/20 Current Proposed Dec 15/20 Municipal Wide Services Other Service Related to Highway $0.17 $0.17 $5,983 $5,983 Protection Services 0.36 0.36 12,647 12,647 Parks and Recreation 0.53 0.58 17,602 19,633 Library Services 0.07 0.09 2,631 2,956 Growth-Related Studies 0.12 0.12 4,035 4,222 Stormwater Management 0.11 0.11 3,846 3,846 Total Municipal Wide Services (Line A) $1.36 $1.43 $46,744 $49,287 Outside of Seaton Lands Transportation 1 2.02 2.87 Total Outside of Seaton Lands (Line B) $2.02 $2.87 Rest of Pickering (Line A+B) $3.38 $4.30 Seaton (Line A) $1.36 $1.43 $46,744 $49,287 1 Does not apply to Seaton Lands, Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning provision of Transportation requirements in addition to other funding contributions 2 Does not apply to prestige employment development in Seaton, as that development is subject to the per net Ha land area charg e instead. The non-residential DC for lands outside of the Seaton Prestige Employment Lands are recovered from development on a per sq. ft. of total floor area basis. The increases above follow the similar pattern as single and semi-detached homes. The increase for “Rest of Pickering” non-residential DC fees, based on a square footage basis, is 27 percent or $0.92 cents per square foot. For Seaton non-residential development (industrial and commercial), a different approach was applied as it relates to development charges . A land area specific charge (per net hectare) is used in contrast to a floor area charge . Under the floor area charge approach, the DC charges are based on the size of the building. Using the land area approach in Seaton, the developer pays the full DC at the time of the first development regardless of the fact that there may be several phases of construction development. - 164 - FIN 19-20 December 14, 2020 Subject: 2020 Development Charges Update Study Page 7 ______________________________________________________________________ Competitive DC Rates The graph below shows that Pickering’s proposed single detached residential DC rate is competitive in comparison with both its Durham Lakeshore neighbours and the City of Toronto. What is interesting to note that even after Pickering’s proposed moderate increase, those Durham Lakeshore municipalities that are east of Pickering (excluding Clarington) have higher DC rates. Pickering’s proposed DC rates as a percentage of the new home cost would be lower than its Durham Lakeshore municipal neighbours. Residential Development Charges Single Detached Dwelling as of October 15, 2020 Indexing Based on our current DC By-law, DC rates will be adjusted annually as of July 1 each year based on the Non-residential Building Construction index in order to keep DC revenues current with construction costs. The previous indexing was done on July 1, 2020, and would be due for indexing again on July 1, 2021. Staff will continue the practice of indexing every year on July 1st. $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 Toronto Ajax Oshawa Whitby Pickering (City Wide)- Calculated Brock Scugog Pickering (City Wide)- Current Clarington Uxbridge Upper Tier Education Lower/Single Tier $78,923 $64,667 $62,257 $61,496 $58,663 $58,203 $55,007 $54,622 $53,579 $53,312 - 165 - FIN 19-20 December 14, 2020 Subject: 2020 Development Charges Update Study Page 8 ______________________________________________________________________ Transition to New Rates The proposed rates will come into effect on December 15, 2020. Any complete building permit applications received after December 15, 2020 will be subject to the new DC rate. Communications Strategy The Development Charges Act has a mandatory communication/advertising requirement for at least one public meeting, and the Clerk is required to carry out such advertising at least 20 days in advance of the meeting date. The Statutory Public Meeting was first advertised in the Pickering News Advertiser on November 12, 2020 and continued every Thursday until December 3, 2020. In addition, reference to the Statutory Public Meeting has been advertised on the City’s website. The City has met the requirements of the Development Charges Act. On October 23, 2020 staff reached out to the development industry by distributing the DC Update Study dated October 15, 2020 and holding a stakeholder consul tation on November 12, 2020. City staff emailed/invited 50 industry/developer representatives of which 3 individuals representing 3 different organizations attended the virtual meeting. Questions were raised by industry attendees and staff have responded. At the December 7, 2020 Executive Committee meeting, there were no delegations to speak at this Statutory Public meeting. Recommendation 3 from FIN 17-20 allowed for the general public to make any written submissions and/or comments regarding the City’s Development Charges Update Study by December 9, 2020. City staff did not receive any written submissions. Attachments: 1. Development Charges Update Study - Office Consolidation of October 15, 2020, and November 2, 2020 Addendum 2. By-law Regarding Development Charges to amend By-law 7595/17, as amended by By-law 7727/19 to Make Certain Revisions to the City’s Development Charges Involving Capital Cost Estimates and Policies - 166 - FIN 19-20 December 14, 2020 Subject: 2020 Development Charges Update Study Page 9 ______________________________________________________________________ Prepared By: Prepared By: Original Signed By: Original Signed By: Caryn Kong James Halsall Senior Financial Analyst – Capital & Manager, Budgets & Internal Audit Debt Management Approved/Endorsed By: Original Signed By: Stan Karwowski Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Interim Chief Administrative Officer - 167 - Watson & Associates Economists Ltd. 905-272-3600 November 2, 2020 info@watsonecon.ca Development Charges Update Study City of Pickering ________________________ Office Consolidation of October 15, 2020 D.C. Update Study and November 2, 2020 Addendum Attachment #1 to Report #FIN 19-20 - 168 - Watson & Associates Economists Ltd. H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table of Contents Page 1. Introduction......................................................................................................... 1 1.1 Background ................................................................................................ 1 1.2 Existing Policies (Rules) ............................................................................ 2 1.2.1 Payment in any Particular Case .................................................... 2 1.2.2 Determination of the Amount of the Charge .................................. 2 1.2.3 Application to Land Redevelopment ............................................. 3 1.2.4 Exemptions (full or partial) ............................................................ 4 1.2.5 Indexing ........................................................................................ 4 1.2.6 By-law Duration ............................................................................. 5 1.2.7 Date Charge Payable .................................................................... 5 1.3 Changes to the Development Charges Act, 1997: More Homes, More Choice Act (Bill 108) the Plan to Build Ontario Together Act (Bill 138), and the COVID-19 Economic Recovery Act (Bill 197) ............... 5 1.4 Basis for D.C. By-law Update .................................................................... 8 2. Anticipated Development................................................................................. 10 3. Revisions to the Anticipated Capital Needs ................................................... 11 3.1 Parks and Recreation Services ................................................................ 11 3.2 Library Services ....................................................................................... 12 3.3 Transportation Services ........................................................................... 12 3.4 Administration Studies ............................................................................. 13 4. Revised D.C. Calculation and Schedule of Charges ..................................... 26 5. D.C. Policy Recommendations and D.C. By-law Rules ................................. 36 5.1 D.C. Calculation and Collection Policies .................................................. 36 5.2 Statutory Exemptions ............................................................................... 37 6. Asset Management Plan and Long-Term Capital and Operating Costs ...... 39 6.1 Introduction .............................................................................................. 39 7. Process for Adoption of the Amending Development Charges By-law ....... 42 Appendix A – Draft Amending Development Charge By-law ................................ A-1 - 169 - Watson & Associates Economists Ltd. PAGE 1 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx 1. Introduction 1.1 Background The City of Pickering (City) imposes development charges (D.C.s) to recover the increase in the needs for service arising from growth. The basis for the calculation of the City’s existing schedule of residential and non -residential development charges is documented in the “City of Pickering Development Charges Update Study” dated October 16, 2019 (as amended on November 19, 2019 and December 10, 2019 ), which was issued as an update to the City’s 2017 D.C. Background Study dated October 5, 2017, as amended. This Background Study provides the supporting documentation for the City’s D.C. By-Law 7595-17, as amended. The current D.C.s by municipal service and development type are summarized in Table 1 -1. This schedule reflects the indexed charges that are currently in force in 2020 dollars for development within the defined Seaton Lands, as the City elected to phase-in the charges for apartment units over the 2018-2020 period for development outside of the Seaton Lands. Table 1-1 City of Pickering Current (Indexed) Schedule of Development Charges Single and Semi-Detached Dwelling Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom Other Multiples (per ft² of Total Floor Area) 2 (per net Ha of Prestige Employment Land in Seaton) Municipal Wide Services: Other Services Related to a Highway 483 307 216 391 0.17 5,983 Protection Services 983 621 439 795 0.36 12,647 Parks and Recreation Services 6,639 4,192 2,971 5,358 0.53 17,602 Library Services 1,100 695 493 889 0.07 2,631 Administration Studies 315 200 141 253 0.12 4,035 Stormwater Management 316 201 142 255 0.11 3,846 Total Municipal Wide Services 9,836 6,216 4,402 7,941 1.36 46,744 Outside of Seaton Lands Transportation 1 7,159 4,522 3,203 5,780 2.02 Total Services Outside of Seaton Lands 7,159 4,522 3,203 5,780 2.02 Seaton 9,836 6,216 4,402 7,941 1.36 46,744 Rest of Pickering 16,995 10,738 7,605 13,721 3.38 Service RESIDENTIAL NON-RESIDENTIAL 1. Subject to a separate agreement outside of the Development Charges Act concerning the provision of Transportation requirements in addition to 2. Does not apply to prestige employment development in Seaton, as that development is subject to the per net Ha land area charge instead. - 170 - Watson & Associates Economists Ltd. PAGE 2 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx 1.2 Existing Policies (Rules) The following subsections set out the rules governing the calculation, payment, and collection of D.C.s as provided in By-law 7595-17 (as amended), in accordance with the Development Charges Act (D.C.A.), 1997. 1.2.1 Payment in any Particular Case In accordance with the D.C.A., the D.C. shall be calculated, payable, and collected where the development requires one or more of the following : • the passing of a zoning by-law or of an amendment to a zoning by-law under section 34 of the Planning Act; • the approval of a minor variance under Section 45 of the Planning Act; • a conveyance of land to which a by-law passed under section 50(7) of the Planning Act applies; • the approval of a plan of subdivision under Section 51 of the Planning Act; • a consent under Section 53 of the Planning Act; • the approval of a description under section 9 of the Condominium Act, 1998, S.O. 1998, c. 19; or • the issuing of a building permit under the Building Code Act in relation to a building. 1.2.2 Determination of the Amount of the Charge The calculation for residential development is generated on a per capita basis and imposed based on four housing types - single and semi-detached, apartments – bachelor and one bedroom, apartments - two bedrooms and greater, and other multiples. The eligible D.C. cost calculations are based on the net anticipated population increase. The total eligible D.C. cost is divided by the “gross” (new resident) population to determine the per capita amount. The cost per capita is then multiplied by the average occupancy of the new units to calculate the charges by type of residential dwelling unit. - 171 - Watson & Associates Economists Ltd. PAGE 3 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx The non-residential D.C. for the Seaton prestige employment lands has been calculated on a per net hectare basis. The non-residential D.C. for development in all other areas of the City has been calculated on a per square foot of gross floor area (G.F.A.) basis. The calculations of the maximum D.C.s that could be imposed by Council have been undertaken based on a cash flow analysis to account for the timing of revenues a nd expenditures and the resultant financing needs. The cash flow calculations have been undertaken by service for each forecast development type, i.e. residential, prestige employment lands within the Seaton Lands, and non-residential development in areas outside of the Seaton Lands. The cash flow calculates interest paid/received on reserve fund balances to account for the differences in timing of projects and when development is anticipated to occur. In year transactions are reduced by ½ to reflect D.C. contributions and expenditures occurring at different times throughout the year. For cashflow purposes, capital costs and D.C.s are indexed at 3% annually, debt is calculated at 5% and investment return is calculated at 2.5%. 1.2.3 Application to Land Redevelopment Despite any other provisions of the by-law, a redevelopment credit is applied against the D.C. payable where a building permit has been issued for development or redevelopment within five years from the date a demolition permit was issued for the same building or structure, or where a building is being converted from one principal use to another, in an amount equivalent to the D.C. otherwise payable for the units or floor area demolished or converted. Moreover, the applicant must also provide proof that the building being demolished was subject to, and paid a D.C., under a prior by-law or a lot levy under by-law 322/89. Where redevelopment occurs on a property that does not have municipal services that include sanitary sewer, storm sewer, and watermain, the period between demolition and building permit issuance is extended to ten years. Furthermore, for building permit issuances that occurred between January 1, 2018 and June 29, 2018, the demolition must have occurred no more than 10 years prior to building permit issuance in order to be eligible for the redevelopment credit. - 172 - Watson & Associates Economists Ltd. PAGE 4 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx 1.2.4 Exemptions (full or partial) The D.C. by-law applies to all lands within the City, with the exception of the following lands which are exempt: Statutory exemptions • Residential development that results in the only the enlargement of an existing dwelling unit, or that results online in the creation or enlargement of an accessory dwelling building for a lawful residential use, or that results only in the creation of up to two additional dwelling units within an existing single detached dwelling, or the creation of one additional dwelling unit in any other existing residential building where the total G.F.A. of the additional unit is equal to or less than the G.F.A. of the smallest unit contained within the residential building; • Land owned by and used for the purposed of a Municipality, a Local Board, or a Board of Education; and • Industrial additions of up to and including 50% of the existing G.F.A. of the building. Non-statutory exemptions • The development of a non-residential farm building used for bona-fide agricultural purposes will be exempt from paying D.C.s for Parks and Recreation Services, Library Services, Administration Services, and Stormwater Management Services; • A building or structure that is used in connection with a place of worship an is exempt from taxation under the Assessment Act as a result; • Development where no additional dwelling units are being created or no additional non-residential gross floor area is being added; • Nursing homes and hospitals; and • Garden Suites. 1.2.5 Indexing The by-law provides for indexing of the D.C., without amendment, annually on July 1st of each year, in accordance with the change in the index for the most recently available - 173 - Watson & Associates Economists Ltd. PAGE 5 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx annual period ending March 31 for the Statistics Canada Quarterly Construction Price Statistics, Catalogue Number 62-007 1.2.6 By-law Duration The by-law will expire at 12:01 AM on January 1, 2023 unless it is repealed by Council at an earlier date. 1.2.7 Date Charge Payable Development charges imposed under the by-law are calculated, payable, and collected on or before the day a building permit is issued in relation to a building or structure on land to which a D.C. applies. 1.3 Changes to the Development Charges Act, 1997: More Homes, More Choice Act (Bill 108) the Plan to Build Ontario Together Act (Bill 138), and the COVID-19 Economic Recovery Act (Bill 197) On May 2, 2019, the Province introduced Bill 108, which proposed changes to the D.C.A. The Bill was introduced as part of the Province’s “More Homes, More Choice: Ontario's Housing Supply Action Plan.” The Bill received Royal Assent on June 6, 2019. While having received Royal Assent, many of the amendments to the D.C.A. would not come into effect until they are proclaimed by the Lieutenant Governor. As of January 1, 2020, the following provisions had been proclaimed: • Transitional provisions were in effect which have been subsequently replaced by updated provisions within Bill 197. • Effective January 1, 2020, rental housing and institutional developments will pay D.C.s in six equal annual installments, with the first payment commencing at the date of occupancy. Non-profit housing developments will pay D.C.s in 21 equal annual installments. Interest may be charged on the installments, and any unpaid amounts may be added to the property and collected as taxes. • Effective January 1, 2020, the D.C. amount for all developments occurring within two years of a site plan or zoning by-law amendment planning approval (for - 174 - Watson & Associates Economists Ltd. PAGE 6 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx applications submitted after this section is proclaimed) shall be determined based on the D.C. charge in effect on the day of site plan or zoning by-law amendment application. If the development is not proceeding via these planning approvals, or if the building permit is issued after the two-year period of application approval, then the amount is determined the earlier of the date of issuance of a building permit or occupancy. In response to the global pandemic that began affecting Ontario in early 2020, the Province released Bill 197, the COVID-19 Economic Recovery Act, which provided amendments to a number of Acts, including the D.C.A. and Planning Act. This Bill also revised some of the proposed changes identified in Bill 108. Bill 197 was tabled on July 8, 2020 and received Royal Assent on July 21, 2020; however, the changes would not come into effect until proclaimed by the Lieutenant Governo r. On September 18, 2020, the Province proclaimed the remaining amendments to the D.C.A. that were made through Bill 108 and Bill 197. The following provides a summary of the changes to the D.C.A. that are now in effect: List of D.C. Eligible Services • Under Bill 108 some services were to be included under the D.C.A. and some would be included under the Community Benefits Charge (C.B.C.) authority. However, Bill 197 revised this proposed change and has included all services (with some exceptions) under the D.C.A. These services are as follows: o Water supply services, including distribution and treatment services. o Wastewater services, including sewers and treatment services. o Storm water drainage and control services. o Services related to a highway. o Electrical power services. o Toronto-York subway extension, as defined in subsection 5.1 (1). o Transit services other than the Toronto-York subway extension. o Waste diversion services. o Policing services. o Fire protection services. o Ambulance services. o Library Services. o Long-term care services. - 175 - Watson & Associates Economists Ltd. PAGE 7 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx o Parks and recreation services (but not the acquisition of land for parks). o Public health services. o Childcare and early years services. o Housing services. o Provincial Offences Act Services. o Services related to emergency preparedness. o Services related to airports, but only in the Regional Municipality of Waterloo. o Additional services as prescribed Classes of D.C. Services The D.C.A. had allowed for categories of services to be grouped together into a minimum of two categories (90% and 100% services). The Act (as proclaimed) repeals that provision and replaces the above with the four following subsections: • A D.C. by-law may provide for any eligible service or capital cost related to any eligible service to be included in a class, set out in the by-law. • A class may be composed of any number or combination of services and may include parts or portions of the eligible services or parts or portions of the capital costs in respect of those services. • A D.C. by-law may provide for a class consisting of studies in respect of any eligible service whose capital costs are described in paragraphs 5 and 6 of s. 5 of the D.C.A. • A class of service set out in the D.C. by-law is deemed to be a single service with respect to reserve funds, use of monies, and credits. 10% Statutory Deduction As well, the removal of 10% deduction for soft services under Bill 108 has been maintained. - 176 - Watson & Associates Economists Ltd. PAGE 8 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Statutory Exemptions Statutory exemptions to the payment of D.C.s for the creation of secondary residential dwelling units in prescribed classes of existing residential buildings or structures ancillary to existing residential buildings. Furthermore, the creation of a second dwelling unit in prescribed classes of proposed new residential buildings, including structures ancillary to dwellings. Transition Services, other than those described in paragraphs 1 to 10 of subsection 2 (4) of the D.C.A. (i.e. ‘soft services’) within an existing D.C. by-law can remain in effect, even if the by-law expires, until the earlier of the day the by-law is repealed, the day the municipality passes a C.B.C. by-law under subsection 37 (2) of the Planning Act, or the specified date (i.e. September 18, 2022). 1.4 Basis for D.C. By-law Update This D.C. Update Study provides for a further amendment to the City’s D.C. By-Law. The purpose of the amendment is to provide for updates to the underlying capital cost estimates and to include additional capital needs to those included within the City’s 2019 D.C. Update Study to determine the charge for Transportation Services, Administration Studies, Parks and Recreation Services, Library Services. This update study also provides for the removal of the statutory 10% deduction for Parks and Recreation Services, Library Services, and Administration Studies as identified in Section 1.3. Moreover, amendments to the D.C.A. with regard to the timing of the calculation and collection of D.C.s and statutory exemptions w ill also be addressed through this D.C. Update Study and By-law amendment. The following Chapters of this Study include: • Chapter 2 – Anticipated Development • Chapter 3 – Revisions to the Anticipated Capital Needs • Chapter 4 – Revised D.C. Calculation and Schedule of Charges • Chapter 5 – D.C. Policy Recommendations and D.C. By-law Rules - 177 - Watson & Associates Economists Ltd. PAGE 9 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx • Chapter 6 – Asset Management Plan and Long-Term Capital and Operating Costs • Chapter 7 – Process for Adoption of the Amending Development Charges By -law • Appendix A – Draft Amending D.C. By-law It should be noted that this report is provided as an update to the 2017 D.C. Background Study and as such the calculations are denominated in 2017 dollars (the City’s D.C. Background Study cost base). The amended D.C. ra tes are subsequently indexed to current rates for implementation. The notice of the Public Meeting will be advertised in accordance with the requirements of the D.C.A., i.e. 20 clear-days prior to the public meeting. This background study document will be released for public review and posted on the City’s website in accordance with provisions of the D.C.A. on October 15, 2020. The statutory public meeting will be held in Council Chambers, at the City of Pickering Municipal Offices on December 7, 2020. A presentation will be made to the public regarding the recommendations of this report, and Council will receive oral and written comments on the matter. It is anticipated that Council will consider for adoption the proposed amending by-law after the 60-day period between the release of the D.C. Background Study and the passage of the D.C. by-law (i.e. December 14, 2020). . - 178 - Watson & Associates Economists Ltd. PAGE 10 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx 2. Anticipated Development The 2017 D.C. Background Study provided for the anticipated residential and non - residential growth within the City of Pickering for the respective service forecast periods. The growth forecast associated with services included in this update study is summarized in Table 2-1 below. Table 2-1 City of Pickering 2017 D.C. Background Study – Growth Forecast Summary For the purpose of this Study, the 201 7 D.C. Background Study growth forecast remains unchanged. The revised capital costs estimates have been considered in the context of this growth forecast. Adjustments to the total D.C. eligible costs are provided where necessary to ensure that the increase in the need for service pertains to the underlying increase in development. Net Population Residential Units Employment 1 Sq.ft. of Non- Residential GFA Early 2018 92,388 31,617 32,573 Early 2028 166,750 61,189 53,694 Mid 2031 179,356 65,530 63,899 10-year (2018-2028) Seaton 48,450 17,471 18,793 17,289,996 Rest of Pickering 25,912 12,101 2,328 2,795,958 14-year (2018-2031) Seaton 58,030 21,193 28,860 27,671,100 Rest of Pickering 28,936 12,720 2,466 3,090,862 Time Horizon Residential Non-Residential Incremental Change - 179 - Watson & Associates Economists Ltd. PAGE 11 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx 3. Revisions to the Anticipated Capital Needs The 2017 D.C. Background Study and 2019 Update Study adopted by Council in the passing of the City’s D.C. by-law (as amended) justified the maximum amount that could be charged for residential and non-residential development. The studies and by- laws identified anticipated capital needs for recovery through D.C.s for Other Services Related to a Highway, Protection Services, Parks and Recreation Services, Library Services, Administration Studies, Stormwater Management, and Transportation Services. The following Sections summarize the amendments made to the var ious capital projects and D.C. eligible capital costs for Parks and Recreation, Library, Administration Studies, and Transportation Services comprising the D.C. amendment. No changes have been proposed for Protection Services, Other Services Related to a Highway, and Stormwater Management. For the purpose of calculating the amended D.C.s, the capital costs estimates have been deflated to 2017$, applying the change in the Statistics Canada Construction Price Statistics Index for the 2018-2020 period (i.e. 9.8%). This reflects the indexing of the City’s D.C. over the period since by-law adoption. 3.1 Parks and Recreation Services The City’s 2019 D.C. Update Study identified updated cost estimates for the Youth & Senior’s Centre and Arts Centre (Community Uses) within the City Centre project of $55.9 million and $13.8 million respectively ($69.7 million total) The capital cost estimate for the Youth & Senior’s Centre and Arts Centre in the 2019 Update Study inappropriately excluded $1.2 million which has been included with this Update Study. This study also serves to remove the statutory 10% deduction that is no longer required in the D.C.A methodology. With these updates, the revised gross capital cost estimates total $215.1 million. After deduction $17.4 million as a benefit to development beyond the 2027 forecast period, $16.6 million for the benefit to existing development, and $16.5 million for existing D.C. - 180 - Watson & Associates Economists Ltd. PAGE 12 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx reserve fund balances, the D.C. eligible costs for inclusion in the calculation of the charge total approximately $164.6 million. These D.C. recoverable costs are within the historical level of service cap for Parks and Recreation Services. Compared with D.C. eligible costs in the 2019 D.C. Update Study of $145.8 million, this represents an increase of $18.8 million in D.C. eligible costs arising from the revisions. The revised D.C. recoverable costs are allocated 95% to residential development and 5% non-residential development, consistent with the City’s 2017 D.C. Background Study, and based on the recognition that residential users are the primary users of Parks and Recreation Services. 3.2 Library Services The City has identified the need to acquire a Library Services Outreach Vehicle to provide service to communities as the City develops in advance of the construction of new facilities. The estimated cost of the vehicle is $220,000, of which 10% or $22,000 has been deducted as benefit to existing development. As the increase in need for service identified in the 2019 Update Study exceeded the average historical level of service, this change does not increase the D.C. eligible costs included in the calculation of the charge. However, as with Parks and Recreation Services, the D.C. eligible costs have been revised to account for the removal of the statutory 10% deduction The above noted changes increase the D.C. recoverable costs for Library Services from $24.8 million to $27.9 million. These eligible costs have been apportioned 95% to residential and 5% to non-residential development 3.3 Transportation Services The Transportation D.C. Capital program has been updated to reflect the proposed construction of the Notion Road/Squires Beach Road 401 Crossing and other updates to cost estimates. The Notion Road/Squires Beach Road 401 Crossing has been identified at a capital cost of $71.2 million (2020$) including construction and utility relocation costs identified in the Municipal Class Environmental Assessment for the crossing prepared by AECOM as well as anticipated design and land acquisition costs. Deflated to 2017$ values, the - 181 - Watson & Associates Economists Ltd. PAGE 13 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx gross capital cost estimate is $64.9 million. To recognize the benefits to existing residents of the improved road network connectivity as well as benefits to development beyond the City of Pickering, 40% of the costs have been deducted as a benefit to existing development. Moreover, as the crossing will be of a benefit to non-residential development of the Durham Live Lands south of the 401 which are in addition to the anticipated development included in the 2018 -2031 D.C. growth forecast, approximately 24% of the growth-related costs have been deducted as a post period benefit. After accounting for these deductions, $29.5 million has been included in the calculation of the charge for the Notion Road/Squires Beach Road 401 Crossing. Further changes to the D.C. capital program include the removal of Transportation Services projects #12, 28, and 29 within the 2019 Update Study as these projects will be replaced by the construction of the Notion Road/Squires Beach Road 401 Crossing. The removal of these projects decreases the D.C. recoverable costs by $2.8 million. Lastly, the City has received updated cost estimates for project #44 (Walnut Lane Extension – construction and contract admin) of $5.7 million (2017$) compared to $2.5 million in the 2019 Update Study. The above noted revisions increase the gross capital costs for the Transportation Services needs to $186.5 million. After accounting for the benefit to existing development deduction of $62.0 million, the post period benefit deduction of $9.4 million, and the existing D.C. reserve fund balance of $18.2, the D.C. eligible costs included in the calculation of the charge are $96.8 million. The revised D.C. recoverable costs are within the historical level of service cap for Transportation Services. These costs have been allocated to residential and non-residential development based on the anticipated population and employment growth outside of the Seaton Lands over the forecast period (i.e. 92% residential and 8% non -residential). 3.4 Administration Studies The studies included in the City’s 2019 Update Study under the Administration Studies Service have been included in the D.C. calculation under the Growth-Related Studies class of services. The studies include both service specific studies that pertain to one of - 182 - Watson & Associates Economists Ltd. PAGE 14 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx the D.C. eligible services included in the D.C. by-law or in some cases or more general growth-related studies. Table 3-5 identifies for each study, the benefitting service or group of benefitting D.C. services to which th e study relates. For general growth-related studies, a deduction of 10% has been applied to recognize the extent to which the studies relate to non -D.C.-eligible services. All general growth- related studies have been allocated to the eligible services in the following manner: • Other Services Related to a Highway – 6.2% • Protection Services – 10.4% • Parks and Recreation Services – 67.8% • Library Services – 11.5% • Stormwater Management – 4.1%Stormwater The gross capital cost of these studies is $13.8 million including $1.0 million in additional study costs for the Geographic Information Systems (GIS) Corporate Strategic Plan, the Northeast Pickering (Veraine) Land Use Studies , and the 5-yesr Capital and Operating Cost Financial Impact Analysis. Deductions of $4.9 million for the benefit to existing development and $211,600 for the benefit to development beyond the forecast period (North East Pickering (Veraine) Land Use Studies) have been applied. After deducting a further $5 10,000 to recognize the portion of general growth- related studies to D.C.-ineligible services (as mentioned above) and $263,200 for other contributions towards the growth-related costs, the net growth-related costs are $7.9 million. The existing reserve fund deficit of $673,900 has been added resulting in a net D.C.-eligible cost of $8.6 million to be included in the calculation of the charge. The D.C. recoverable cost attribution has been maintained at 78% residential and 22% non-residential based on the share of net population increase as a percentage of the sum of the net population and employment increase for the planning period. - 183 - Watson & Associates Economists Ltd. PAGE 15 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 3-1 Infrastructure Costs Covered in the D.C. Calculation – Parks and Recreation Services Less: Prj.No Residential Share Non- Residential Share 2018-2027 95%5% Parks 1 Parking lot expansion - Village East Park 2018-2027 107,900 - 107,900 80,925 26,975 25,626 1,349 2 Washroom/changerooms - Rotary Frenchman's Bay West Park 2019 500,000 - 500,000 250,000 250,000 237,500 12,500 3 Frenchman's Bay Waterfront Master Plan Implementation (ph 1A & ph 1B)2018 2,755,000 - 2,755,000 1,377,500 1,377,500 1,308,625 68,875 4 Frenchman's Bay Waterfront Master Plan Implementation (ph 2)2018-2019 2,000,000 - 2,000,000 1,000,000 1,000,000 950,000 50,000 5 Frenchman's Bay Waterfront Master Plan Implementation (ph 3)2019-2020 950,000 - 950,000 475,000 475,000 451,250 23,750 6 Community Park - Greenwood Conservation Lands (ph 1)2021-2023 5,396,000 - 5,396,000 2,698,000 2,698,000 2,563,100 134,900 7 Community Park - Greenwood Conservation Lands (ph 2)2024-2027 3,777,200 - 3,777,200 1,219,561 2,557,639 2,429,757 127,882 8 Park - Krosno Creek valley - Hwy 401 to Bayly 2019-2023 269,800 - 269,800 26,980 242,820 230,679 12,141 9 Park - The Piazza - downtown south intensification 2019-2023 539,600 - 539,600 53,960 485,640 461,358 24,282 10 Skate Board Park - Community Size (Civic Centre)2019 700,000 - 700,000 350,000 350,000 332,500 17,500 11 Skate Board Park - Skate Spots (2 locations)2018-2022 400,000 - 400,000 200,000 200,000 190,000 10,000 12 Village Green Construction - Kindwin Development (Brock Road)2018 250,000 - 250,000 6,250 243,750 231,563 12,188 13 D.H. Neighbourhood Park (Dersan & Tillings Road)2018-2019 600,000 - 600,000 15,000 585,000 555,750 29,250 - Seaton Parkland - 14 Neighbourhood Park P-102 2018 950,000 - 950,000 23,750 926,250 879,938 46,313 15 Village Green P-103 2018 210,000 - 210,000 5,250 204,750 194,513 10,238 16 Village Green P-104 2018-2019 285,000 - 285,000 7,125 277,875 263,981 13,894 17 Village Green P-105 2019-2020 230,000 - 230,000 5,750 224,250 213,038 11,213 18 Village Green P-106 2019-2020 120,000 - 120,000 3,000 117,000 111,150 5,850 19 Neighbourhood Park P-107 2019 440,000 - 440,000 11,000 429,000 407,550 21,450 20 Village Green P-108 2019-2020 250,000 - 250,000 6,250 243,750 231,563 12,188 21 Neighbourhood Park P-109 2019-2020 550,000 - 550,000 13,750 536,250 509,438 26,813 22 Village Green P-110 2019-2020 230,000 - 230,000 5,750 224,250 213,038 11,213 23 Village Green P-111 2019-2020 170,000 - 170,000 4,250 165,750 157,463 8,288 24 Village Green P-112 2021 260,000 - 260,000 6,500 253,500 240,825 12,675 25 Village Green P-113 2021 150,000 - 150,000 3,750 146,250 138,938 7,313 26 Village Green P-114 2019-2020 222,000 - 222,000 5,550 216,450 205,628 10,823 27 Community Park at Recreation Centre P-115 2022 3,000,000 - 3,000,000 75,000 2,925,000 2,778,750 146,250 28 Village Green P-116 2020-2021 230,000 - 230,000 5,750 224,250 213,038 11,213 29 Neighbourhood Park P-117 2020-2021 540,000 - 540,000 13,500 526,500 500,175 26,325 30 Village Green P-118 2020-2021 230,000 - 230,000 5,750 224,250 213,038 11,213 31 Village Green P-119 2020-2021 480,000 - 480,000 12,000 468,000 444,600 23,400 Gross Capital Cost Estimate (2017$) Increased Service Needs Attributable to Anticipated Development Timing (year)Post Period Benefit Other Deductions Net Capital Cost Potential DC Recoverable Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development TotalParks Code - 184 - Watson & Associates Economists Ltd. PAGE 16 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 3-1 (Cont’d) Infrastructure Costs Covered in the D.C. Calculation – Parks and Recreation Services Less: Prj.No Residential Share Non- Residential Share 2018-2027 95% 5% 32 Neighbourhood Park P-120 2020-2021 500,000 - 500,000 12,500 487,500 463,125 24,375 33 Village Green P-121 2020 390,000 - 390,000 9,750 380,250 361,238 19,013 34 Neighbourhood Park P-122 2021 590,000 - 590,000 14,750 575,250 546,488 28,763 35 Community Park P-123 2024-2025 2,550,000 - 2,550,000 63,750 2,486,250 2,361,938 124,313 36 Neighbourhood Park P-124 2023 540,000 - 540,000 13,500 526,500 500,175 26,325 37 Village Green P-125 2023-2024 240,000 - 240,000 6,000 234,000 222,300 11,700 38 Village Green P-126 2023-2024 260,000 - 260,000 6,500 253,500 240,825 12,675 39 Village Green P-127 2023-2024 230,000 - 230,000 5,750 224,250 213,038 11,213 40 Neighbourhood Park P-128 2026 590,000 - 590,000 14,750 575,250 546,488 28,763 41 Community Park at Recreation Centre II P-129 2028-2031 800,000 800,000 - - - - - 42 Village Green P-130 2026 230,000 - 230,000 5,750 224,250 213,038 11,213 43 Neighbourhood Park P-131 2026 600,000 - 600,000 15,000 585,000 555,750 29,250 44 Village Green P-132 2028-2031 230,000 230,000 - - - - - 45 Village Green P-133 2028-2031 210,000 210,000 - - - - - 46 Neighbourhood Park P-134 2028-2031 700,000 700,000 - - - - - 47 Neighbourhood Park P-135 2028-2031 560,000 560,000 - - - - - 48 Village Green P-136 2028-2031 230,000 230,000 - - - - - 49 Village Green P-137 2027 230,000 - 230,000 5,750 224,250 213,038 11,213 50 Village Green P-138 2027 230,000 - 230,000 5,750 224,250 213,038 11,213 51 Village Green P-139 2027 300,000 - 300,000 7,500 292,500 277,875 14,625 52 Village Green P-140 2028-2031 270,000 270,000 - - - - - 53 Community Park P-141 2028-2031 3,300,000 3,300,000 - - - - - 54 Neighbourhood Park P-142 2028-2031 890,000 890,000 - - - - - 55 Village Green P-143 2028-2031 230,000 230,000 - - - - - 56 District Park (Phase 1)P-144 2027 9,000,000 - 9,000,000 225,000 8,775,000 8,336,250 438,750 57 District Park (Phase 2)P-144 2028-2031 9,000,000 9,000,000 - - - - - - Trails - 58 Seaton Primary Neighbourhood Connection Trails 1 major stream crossing T-1 2020 360,000 - 360,000 9,000 351,000 333,450 17,550 59 Seaton Primary Neighbourhood Connection Trails 1 minor stream crossing T-2 2020 360,000 - 360,000 9,000 351,000 333,450 17,550 60 Seaton Primary Neighbourhood Connection Trails 1 major stream crossing T-3 2021 410,000 - 410,000 10,250 399,750 379,763 19,988 61 Seaton Primary Neighbourhood Connection Trails 1 major stream crossing T-4 2021 380,000 - 380,000 9,500 370,500 351,975 18,525 62 Seaton Primary Neighbourhood Connection Trails 2 major stream crossing T-5 2021 710,000 - 710,000 17,750 692,250 657,638 34,613 63 Seaton Primary Neighbourhood Connection Trails 2 major stream crossing T-6 2024 800,000 - 800,000 20,000 780,000 741,000 39,000 64 Seaton Primary Neighbourhood Connection Trails 1 minor stream crossing T-7 2024 370,000 - 370,000 9,250 360,750 342,713 18,038 65 Seaton Primary Neighbourhood Connection Trails 2 major stream crossing T-8 2026 930,000 - 930,000 23,250 906,750 861,413 45,338 Gross Capital Cost Estimate (2017$) Increased Service Needs Attributable to Anticipated Development Timing (year)Post Period Benefit Other Deductions Net Capital Cost Potential DC Recoverable Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development TotalParks Code - 185 - Watson & Associates Economists Ltd. PAGE 17 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 3-1 (Cont’d) Infrastructure Costs Covered in the D.C. Calculation – Parks and Recreation Services Less: Prj.No Residential Share Non- Residential Share 2018-2027 95% 5% 66 Seaton Primary Neighbourhood Connection Trails 1 minor stream crossing T-9 2022 140,000 - 140,000 3,500 136,500 129,675 6,825 67 Seaton Primary Neighbourhood Connection Trails 1 major stream crossing T-10 2022 320,000 - 320,000 8,000 312,000 296,400 15,600 68 Seaton Primary Neighbourhood Connection Trails 1 major stream crossing T-11 2027 340,000 - 340,000 8,500 331,500 314,925 16,575 69 Seaton Primary Neighbourhood Connection Trails 1 major stream crossing T-12 2028-2031 310,000 310,000 - - - - - 70 Seaton Primary Neighbourhood Connection Trails 1 major stream crossing T-13 2028-2031 290,000 290,000 - - - - - 71 Seaton Primary Neighbourhood Connection Trails 1 major stream crossing T-14 2028-2031 340,000 340,000 - - - - - 72 Multi-purpose trail - Duffin Heights (Mattamy dev't) to Ajax 2025 539,600 - 539,600 269,800 269,800 256,310 13,490 73 Multi-purpose trail - Hydro Corridor (Liverpool to Whites)2019-2023 982,100 - 982,100 491,050 491,050 466,498 24,553 74 Trail - Bayly Street from waterfront trail to Go Station 2019-2023 539,600 - 539,600 269,800 269,800 256,310 13,490 75 Trail - Bayly Street from Go Station to Hydro Corridor 2019-2023 377,700 - 377,700 188,850 188,850 179,408 9,443 76 Trail - Finch to Brockridge Park (45m bridge)2019-2023 917,300 - 917,300 458,650 458,650 435,718 22,933 77 Trail - Wharf Street to Sandy Beach Road 2019-2023 431,700 - 431,700 215,850 215,850 205,058 10,793 78 Mulit-pupose trail - Hydro Corridor (Whites to Townline)2024-2027 1,618,800 - 1,618,800 809,400 809,400 768,930 40,470 Recreation Facilities - 79 Seaton Recreation Complex 2020 75,000 - 75,000 1,875 73,125 69,469 3,656 2021 10,700,000 - 10,700,000 267,500 10,432,500 9,910,875 521,625 2022 42,800,000 - 42,800,000 1,070,000 41,730,000 39,643,500 2,086,500 2023 2,600,000 - 2,600,000 65,000 2,535,000 2,408,250 126,750 80 Community Centre 2018 388,673 - 388,673 166,399 222,273 211,160 11,114 (Part of Pickering Heritage and Community Centre)2019 2,040,531 - 2,040,531 873,597 1,166,934 1,108,588 58,347 2021 916,152 - 916,152 192,417 723,736 687,549 36,187 2022 4,809,800 - 4,809,800 1,010,188 3,799,612 3,609,631 189,981 81 Youth & Seniors' Centre 2019 5,428,840 - 5,428,840 135,721 5,293,119 5,028,463 264,656 2020 25,841,277 - 25,841,277 646,032 25,195,245 23,935,483 1,259,762 2021 25,841,277 - 25,841,277 646,032 25,195,245 23,935,483 1,259,762 82 Arts Centre (Community Uses)2019 13,812,145 - 13,812,145 345,304 13,466,841 12,793,499 673,342 - Gross Capital Cost Estimate (2017$) Increased Service Needs Attributable to Anticipated Development Timing (year)Post Period Benefit Other Deductions Net Capital Cost Potential DC Recoverable Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development TotalParks Code - 186 - Watson & Associates Economists Ltd. PAGE 18 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 3-1 (Cont’d) Infrastructure Costs Covered in the D.C. Calculation – Parks and Recreation Services Less: Prj.No Residential Share Non- Residential Share 2018-2027 95%5% Parks Operations Vehicles and Equipment - 83 Area Mower 2020 115,000 - 115,000 - 115,000 109,250 5,750 84 Area Mower (2)2018-2027 230,000 - 230,000 - 230,000 218,500 11,500 85 Litter Picker Vacuum 2018 30,000 - 30,000 - 30,000 28,500 1,500 86 Garbage Packer 2018-2027 150,000 - 150,000 - 150,000 142,500 7,500 87 Garbage Packer 2018 150,000 - 150,000 - 150,000 142,500 7,500 88 Enclosed Trailers (3)2018-2027 36,000 - 36,000 - 36,000 34,200 1,800 89 Zero Turn Mower (6)2018-2027 108,000 - 108,000 - 108,000 102,600 5,400 90 Pickup Trucks (2)2018-2027 74,000 - 74,000 - 74,000 70,300 3,700 91 1 Ton Dump Trucks (2)2018-2027 130,000 - 130,000 - 130,000 123,500 6,500 92 SUV (2)2018-2027 70,000 - 70,000 - 70,000 66,500 3,500 93 4 Ton Dump Truck 2018-2027 270,000 - 270,000 - 270,000 256,500 13,500 94 Utility Vehicle 2019 25,000 - 25,000 - 25,000 23,750 1,250 Parks Operations Facilities - 95 New Operations Centre (Growth Related Share)2017 3,839,435 - 3,839,435 3,839,435 3,647,463 191,972 96 New Northern Satellite Operations Centre, including land 2024 3,433,300 - 3,433,300 - 3,433,300 3,261,635 171,665 Reserve Fund Adjustment (16,528,412) (15,701,991) (826,421) Total 215,073,731 17,360,000 - 197,713,731 16,630,316 - 164,555,003 156,327,253 8,227,750 Gross Capital Cost Estimate (2017$) Increased Service Needs Attributable to Anticipated Development Timing (year)Post Period Benefit Other Deductions Net Capital Cost Potential DC Recoverable Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development TotalParks Code - 187 - Watson & Associates Economists Ltd. PAGE 19 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 3-2 Infrastructure Costs Covered in the D.C. Calculation – Library Services Less: Residential Share Non- Residential Share 2018-2027 95%5% Facilities Central Library Facility 2018 3,509,764 3,509,764 1,833,898 1,675,866 1,592,073 83,793 2019 20,908,168 20,908,168 10,924,793 9,983,375 9,484,207 499,169 2020 20,908,168 20,908,168 10,924,793 9,983,375 9,484,207 499,169 Seaton Regional Library, including land (including material)2021 4,138,000 2,964,262 1,173,738 103,450 1,070,288 1,016,774 53,514 2022 6,860,000 4,914,170 1,945,830 171,500 1,774,330 1,685,614 88,717 2023 6,861,000 4,914,886 1,946,114 171,525 1,774,589 1,685,860 88,729 Archives and Library Space 2018 612,454 612,454 - 612,454 581,831 30,623 (Part of Pickering Heritage and Community Centre)2019 3,215,383 3,215,383 - 3,215,383 3,054,614 160,769 2021 61,449 61,449 - 61,449 58,377 3,072 2022 322,609 322,609 - 322,609 306,478 16,130 Library Outreach Vehicle 2021 220,000 220,000 22,000 198,000 188,100 9,900 Reserve Fund Adjustment (2,798,782) (2,658,843) (139,939) Total 67,616,995 12,793,317 54,823,678 24,151,959 - 27,872,937 26,479,291 1,393,647 Total Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2017$) Post Period Benefit Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Potential DC Recoverable Cost - 188 - Watson & Associates Economists Ltd. PAGE 20 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 3-3 Infrastructure Costs Covered in the D.C. Calculation – Transportation Services Less:Potential DC Recoverable Cost Prj .No Residential Share Non- Residential Share 92%8% Roads 1 Tillings Road oversizing - local to collector DH-3 2018-2024 294,800 - 294,800 29,480 265,320 244,094 21,226 2 William Jackson Drive - Urfe Creek to Taunton Road Urbanization, pedestrian trail DH-13 2018-2024 2,229,040 - 2,229,040 222,904 2,006,136 1,845,645 160,491 3 Sandy Beach Road 3-lane urban reconstruction, incl. storm B-29 2018-2024 6,500,000 - 6,500,000 3,250,000 3,250,000 2,990,000 260,000 4 DH-4 Valley Farm Rd. - Tillings Road to Brock Rd. Oversizing - local to collector DH-4 2018-2024 288,000 - 288,000 28,800 259,200 238,464 20,736 5 DH-14 William Jackson Dr. (Old Taunton). Urfe Creek Culvert Structure (Design/Approval).EA & Design DH-14 2018-2024 450,000 - 450,000 45,000 405,000 372,600 32,400 6 DH-14 William Jackson Dr. (Old Taunton). Urfe Creek Culvert Structure (Construction)Construction DH-14 2018-2024 3,455,100 - 3,455,100 345,510 3,109,590 2,860,823 248,767 7 Valley Farm Road - North of Third Concession to Tillings 3-lane urban construction, incl. storm DH-1 2020-2024 3,399,500 - 3,399,500 339,950 3,059,550 2,814,786 244,764 8 Twyn Rivers Drive - Hoover to West Limit 2-lane urban reconstruction RO-3 2025-2031 2,210,000 - 2,210,000 1,657,500 552,500 508,300 44,200 9 Finch Avenue - Townline to Altona 3-lane urban reconstruction, incl. storm RP-4 2018-2024 1,850,300 - 1,850,300 462,575 1,387,725 1,276,707 111,018 10 Pickering Parkway - Glenanna to Hydro Corridor (E)sidewalk TC-1 2018-2024 54,100 - 54,100 40,575 13,525 12,443 1,082 11 Diefenbaker Extension - East Limit to Pickering Parkway 2-lane, new construction TC-5 2025-2031 750,000 - 750,000 562,500 187,500 172,500 15,000 - - - - - - 12 Sheppard Avenue - Whites to West Limit sidewalk, blvd., streetlight on north side WO-5 2018-2024 244,000 - 244,000 183,000 61,000 56,120 4,880 13 Sheppard Avenue - Whites to 600m East sidewalk, blvd., structures south side WO-9 2018-2024 395,000 - 395,000 296,250 98,750 90,850 7,900 14 Audley Road (Sideline 2) Conc. #5 to Hwy 7 2-lane rural reconstruction incl. structures RU-4 2018-2024 3,212,155 - 3,212,155 1,606,078 1,606,078 1,477,591 128,486 15 A-5, A-6, A-7 Arterial Connection Bayly to Kingston Rd.Feasibility Study & EA TC-31 2018-2024 2,698,000 - 2,698,000 674,500 2,023,500 1,861,620 161,880 16 Dunbarton Walkway - Dunbarton to Rambleberry walkway D-4 2018-2024 323,150 - 323,150 242,363 80,788 74,325 6,463 17 Valley Farm/Tillings Bridge - Ganatsekiagon EA & Design DH-2 2018-2024 500,000 500,000 50,000 450,000 414,000 36,000 18 Valley Farm/Tillings Bridge - Ganatsekiagon New Structure DH-2 2020-2024 13,489,900 - 13,489,900 1,348,990 12,140,910 11,169,637 971,273 19 Oakwood Drive - Rougemount to Mountain Ash 2-lane urban reconstruction R-4a 2018-2024 1,435,750 - 1,435,750 717,875 717,875 660,445 57,430 20 Oakwood Drive - Mountain Ash to Toynevale 2-lane urban reconstruction, incl. storm R-4b 2018-2024 718,225 - 718,225 359,113 359,113 330,384 28,729 21 Rougemount Drive - Woodgrange to Toynevale 2-lane urban reconstruction, incl. storm R-5 2018-2024 285,280 - 285,280 142,640 142,640 131,229 11,411 22 Finch Avenue - West of Altona (Structure)culvert replacement RP-2 2018-2024 1,000,000 - 1,000,000 500,000 500,000 460,000 40,000 23 Scar/Pickering Townline - Finch to CPR reconstruction/widen RP-14 2018-2024 866,800 - 866,800 433,400 433,400 398,728 34,672 24 Scar/Pickering Townline - CPR to Taunton/Steeles reconstruction/widen RU-7 2018-2024 5,634,200 - 5,634,200 2,817,100 2,817,100 2,591,732 225,368 25 Dixie Road - Kingston to South Limit sidewalk, east side TC-13 2018-2024 54,100 - 54,100 40,575 13,525 12,443 1,082 26 Granite Court - Whites to Rosebank sidewalk, north side W-4 2018-2024 207,085 - 207,085 155,314 51,771 47,630 4,142 - - - - - - - - - - - - 27 A-11 (Plummer) - Sandy Beach Road to Krosno Creek Oversizing to Collector B26B 2021 1,088,606 - 1,088,606 272,152 816,455 751,138 65,316 28 A-12 (Plummer) - Krosno Creek Crossing Bridge Structure B-27 2021 2,158,400 - 2,158,400 539,600 1,618,800 1,489,296 129,504 29 A-13 (N/S COllector) - Krosno Creek to Bayly Street Crossing Oversizing to Collector B-28 2021 54,000 - 54,000 13,500 40,500 37,260 3,240 30 Rosebank Road - CPR to Third Concession Rd.reconstruction/widen L-17 2025-2031 4,278,250 - 4,278,250 1,069,563 3,208,688 2,951,993 256,695 31 Rosebank Road - Third Concession Rd. To Taunton Rd.reconstruction/widen L-18 2025-2031 3,137,920 - 3,137,920 784,480 2,353,440 2,165,165 188,275 Grants, Subsidies and Other Contributions Attributable to New Development Total 2018-2031 Increased Service Needs Attributable to Anticipated Development Roads Code Post Period Benefit Net Capital CostTiming (year) Gross Capital Cost Estimate (2017$) Benefit to Existing Development - 189 - Watson & Associates Economists Ltd. PAGE 21 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 3-3 (Cont’d) Infrastructure Costs Covered in the D.C. Calculation – Transportation Services Less:Potential DC Recoverable Cost Prj .No Residential Share Non- Residential Share 92%8% 32 Montgomery Park Rd. - Sandy Beach Rd. To Mckay Rd.Urbanization /Full Load BI-21 2018-2024 3,710,000 - 3,710,000 1,855,000 1,855,000 1,706,600 148,400 33 Third Concession Rd. - Dixie Rd. To Whites Rd.Reconstruction/widen L-12 2025-2031 4,564,371 - 4,564,371 1,141,093 3,423,278 3,149,416 273,862 34 Third Concession Rd. - Whites Rd. To Altona Rd.Reconstruction/widen L-13 2025-2031 4,564,371 - 4,564,371 1,141,093 3,423,278 3,149,416 273,862 35 Third Concession Rd. - Altona Rd. To West Townline Reconstruction/widen L-14 2025-2031 4,564,371 - 4,564,371 1,141,093 3,423,278 3,149,416 273,862 36 Fairport Rd. - Lynn Heights To Third Concession Rd.Reconstruction/widen L-15 2025-2031 4,279,080 - 4,279,080 1,069,770 3,209,310 2,952,565 256,745 37 Dixie Rd. - Hydro Corridor To Third Concession Rd. Reconstruction/widen L-16 2025-2031 3,993,800 - 3,993,800 998,450 2,995,350 2,755,722 239,628 38 A-8 (Plummer) - Brock Rd. To Salk Road Reconstruction to collector road B-24 2025-2031 495,300 - 495,300 123,825 371,475 341,757 29,718 39 A-9 (Plummer) - Salk Road To Hydro Corridor (centre)New collector road B-25 2025-2031 396,200 - 396,200 99,050 297,150 273,378 23,772 40 A-10 (Plummer) - Hyrdo Corridor (centre) to Sandy Beach Road New collector road B-26A 2025-2031 973,520 - 973,520 243,380 730,140 671,729 58,411 41 Walnut Lane Extension - construction and contract admin 2019 5,648,000 5,648,000 1,412,000 4,236,000 3,897,120 338,880 42 Walnut Lane Extension -EA and Design 2018 211,226 211,226 52,807 158,420 145,746 12,674 43 EA Study A8-A12 (Plummer) B-24 to B-28 2018-2024 500,000 - 500,000 125,000 375,000 345,000 30,000 44 Notion Road/Squires Beach Road 401 Crossing 2022-2024 64,900,000 9,405,378 55,494,622 25,960,000 29,534,622 27,171,852 2,362,770 45 WO-2 Kingston Road - South Side Rosebank Rd. to Steeple Hill Includes pedestrian bridge WO-2 2018-2024 332,660 - 332,660 166,330 166,330 153,024 13,306 46 Kingston Road - Glendale Drive to Walnut Lane North side TC-9 2025-2031 351,000 - 351,000 175,500 175,500 161,460 14,040 47 Kingston Road - Dixie Road to Liverpool Road South Side TC-12 2018-2024 585,000 - 585,000 292,500 292,500 269,100 23,400 48 Sidewalk & Streetlights: Rosebank to Whites ES 2000 RO-10 Rosebank to 250 m west North Side RO-10 2018-2024 103,283 - 103,283 51,642 51,642 47,510 4,131 49 Sidewalks & Streetlights TC-7 (2005-2009) Kingston Rd. - Valley Farm Rd. East (south side) to Hydro Corridor. South Side TC-7 2018-2024 133,500 - 133,500 66,750 66,750 61,410 5,340 50 Sidewalks & Streetlights. N.E. Quadrant Delta Blvd 03-2321-01-21 WO-1 2025-2031 112,000 - 112,000 56,000 56,000 51,520 4,480 51 Sidewalks & Streetlights: Kingston Rd. Steeple Hill to Whites 04-2321-002-03 North Side WO-3 2018 317,000 - 317,000 158,500 158,500 145,820 12,680 52 Sidewalks & Streetlights: Kingston/Dixie-CNR tracks South Side TC-11 2025-2031 133,500 - 133,500 66,750 66,750 61,410 5,340 53 Streetlights & Sidewalks Brock Road-both sides-Forbrock Rd. to Taunton Road. DH-24 2018-2024 50,000 - 50,000 25,000 25,000 23,000 2,000 54 TC-6 - Valley Farm Road (East Side) Kingston Road to 100m South - Sidewalk/Blvd. in conjunction with adjacent development. TC-6 2018-2024 53,777 - 53,777 26,889 26,889 24,737 2,151 55 Kingston Road - West Limit of Neighbourhood 7 to Dixie Road north side D-1 2018-2024 570,000 - 570,000 285,000 285,000 262,200 22,800 56 Kingston Road - West Limit to East Limit of Neighbourhood 7 (Fairport to CN bridge)south side.D-2 2018-2024 694,535 - 694,535 347,268 347,268 319,486 27,781 Increased Service Needs Attributable to Anticipated Development Roads Code Post Period Benefit Net Capital CostTiming (year) Gross Capital Cost Estimate (2017$) Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total 2018-2031 - 190 - Watson & Associates Economists Ltd. PAGE 22 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 3-3 (Cont’d) Infrastructure Costs Covered in the D.C. Calculation – Transportation Services Less:Potential DC Recoverable Cost Prj .No Residential Share Non- Residential Share 92%8% 57 Finch Avenue - Spruce Hill to East Limit of Neighbourhood 9 north side D-9 2018-2024 285,000 - 285,000 142,500 142,500 131,100 11,400 58 Finch Avenue - Spruce Hill to Fairport Road south side D-10 2018-2024 253,000 - 253,000 126,500 126,500 116,380 10,120 59 Finch Avenue - Brock Road to Hydro Corridor north side V-12 2018-2024 315,650 - 315,650 157,825 157,825 145,199 12,626 60 Whites Road - Granite Court to Hwy 401 west side W-5 2018-2024 95,000 - 95,000 47,500 47,500 43,700 3,800 61 Whites Road - North of 3rd Concession to Taunton Road sidewalk, multi-use trail, streetlight RU-8 2018-2024 1,153,000 - 1,153,000 57,650 1,095,350 1,007,722 87,628 62 Whites Road - Finch Ave to Seaton Boundary multi-use 2018-2024 1,741,100 - 1,741,100 174,110 1,566,990 1,441,631 125,359 63 Whites Road - Bridge over west Duffins Creek streetlighting RU-9 2018-2024 809,400 - 809,400 40,470 768,930 707,416 61,514 64 Brock Road - Bayly Street to Montgomery Road East and West Sides BI-4 2018-2024 1,861,600 - 1,861,600 930,800 930,800 856,336 74,464 65 Sideline 24 - Hwy 7 south to north limit of subdivision sidewalk/streetlights RU-12 2018-2024 389,600 - 389,600 58,440 331,160 304,667 26,493 66 Whites Rd. CPR Overpass sidewalk/streetlights A-6 2018-2024 269,800 - 269,800 40,470 229,330 210,984 18,346 67 Bayly Street - Church Street to West Limit Neighbourhood 4 north and south sides BI-1 2018-2024 1,162,300 - 1,162,300 581,150 581,150 534,658 46,492 68 Hwy 7 - Brock Rd to West Townline Sidewalk/streetlights north side RU-10 2018-2024 1,250,800 - 1,250,800 187,620 1,063,180 978,126 85,054 69 Church Street - Bayly Street to Kellino Street west side BI-17 2018-2024 325,000 - 325,000 162,500 162,500 149,500 13,000 70 Altona Road - Strouds Lane to North Limit of Neighbourhood 10 east and west sides H1 2018-2024 1,300,000 - 1,300,000 650,000 650,000 598,000 52,000 71 Finch Avenue - West Limit of Neighbourhood 7 to Duncannon Dr.north side L-6 2018-2024 150,000 - 150,000 75,000 75,000 69,000 6,000 72 Finch Avenue - Lynn Heights to East 80m north side L-7 2018-2024 40,000 - 40,000 20,000 20,000 18,400 1,600 73 Finch Avenue - Valley Farm Road to West 600m south side L-9 2018-2024 300,000 - 300,000 150,000 150,000 138,000 12,000 74 Finch Avenue - Valley Farm Road to East 300m north side L-10 2018-2024 150,000 - 150,000 75,000 75,000 69,000 6,000 75 Finch Avenue - Altona Road to Rosebank Road south side RP-6 2018-2024 250,000 - 250,000 125,000 125,000 115,000 10,000 76 Finch Avenue - Rosebank Road to 500m West north side RP-5 2018-2024 250,000 - 250,000 125,000 125,000 115,000 10,000 77 Altona Road - Finch Avenue to Hydro Corridor (N)east side RP-9 2018-2024 150,000 - 150,000 75,000 75,000 69,000 6,000 78 Altona Road - Finch Avenue to North Limit of Neighbourhood 14 west side RP-10 2018-2024 150,000 - 150,000 75,000 75,000 69,000 6,000 79 Altona Road - Finch Avenue to North Limit of Neighbourhood 14 east side RP-11 2018-2024 150,000 - 150,000 75,000 75,000 69,000 6,000 80 North Road - Hwy 7 south to north limit of subdivision sidewalk/streetlights RU-11 2018-2024 500,000 - 500,000 75,000 425,000 391,000 34,000 81 Whitevale Road - Altona Road to York/Durham Townline sidewalk/streetlights/multi-use trail RU-14 2018-2024 675,000 - 675,000 101,250 573,750 527,850 45,900 82 Taunton Rd. - Sideline 16 to Church St.sidewalk/streetlights/multi-use trail RU-17 2025-2031 375,000 - 375,000 56,250 318,750 293,250 25,500 83 Taunton Rd. - Whites Rd. To West Townline sidewalk/streetlights/multi-use trail RU-18 2025-2031 2,475,000 - 2,475,000 371,250 2,103,750 1,935,450 168,300 84 South Esplanade Pedestrian Mall walkway 2025-2031 900,000 - 900,000 450,000 450,000 414,000 36,000 85 Kingston Road - Fronting 820 Kingston Road to Fairport Rd North Side (455m)WO-10 2018-2024 270,000 - 270,000 135,000 135,000 124,200 10,800 86 Kingston Road - Rougemount Drive to 300m west North Side RO-12 2018-2024 175,500 - 175,500 87,750 87,750 80,730 7,020 Grants, Subsidies and Other Contributions Attributable to New Development Total 2018-2031 Increased Service Needs Attributable to Anticipated Development Roads Code Post Period Benefit Net Capital CostTiming (year) Gross Capital Cost Estimate (2017$) Benefit to Existing Development - 191 - Watson & Associates Economists Ltd. PAGE 23 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 3-3 (Cont’d) Infrastructure Costs Covered in the D.C. Calculation – Transportation Services Less:Potential DC Recoverable Cost Prj .No Residential Share Non- Residential Share 92%8% Traffic Signals 87 Pickering Parkway at Glenanna Rd. - Signalization TC-4 2018-2024 300,000 - 300,000 30,000 270,000 248,400 21,600 88 Glenanna Road at Fairport Road Signalization D-8 2018-2024 300,000 - 300,000 30,000 270,000 248,400 21,600 89 Welrus Street at Fairport Road Signalization D-12 2018-2024 300,000 - 300,000 30,000 270,000 248,400 21,600 90 Rosebank Road at Sheppard Avenue Jog elimination/Signalization & EA WO-8 2018-2024 700,000 - 700,000 70,000 630,000 579,600 50,400 91 Rosebank Road at Highview Road/Deerhaven Lane Signalization A-5 2018-2024 300,000 - 300,000 30,000 270,000 248,400 21,600 92 Strouds Lane at Aspen Road/Shadybrook Drive Signalization A-7 2025-2031 600,000 - 600,000 60,000 540,000 496,800 43,200 93 Finch Avenue at Woodview Avenue Signalization RP-1 2025-2031 300,000 - 300,000 30,000 270,000 248,400 21,600 Reserve Fund Adjustment (18,249,536) (16,789,573) (1,459,963) Total 186,469,905 9,405,378 177,064,527 62,021,007 - 96,793,984 89,050,466 7,743,519 Grants, Subsidies and Other Contributions Attributable to New Development Total 2018-2031 Increased Service Needs Attributable to Anticipated Development Roads Code Post Period Benefit Net Capital CostTiming (year) Gross Capital Cost Estimate (2017$) Benefit to Existing Development - 192 - Watson & Associates Economists Ltd. PAGE 24 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 3-5 Infrastructure Costs Covered in the D.C. Calculation – Growth-Related Studies Less: Prj.No Residential Share Non- Residential Share 2018-2027 78%22% 1 Development Charges Background Study See note 1 2022 125,000 - 125,000 - 125,000 97,500 27,500 2 Development Charges Background Study See note 1 2027 125,000 - 125,000 - 125,000 97,500 27,500 3 South Pickering Intensification Study (Incl. Parts 4-5)See note 1 2018-2020 400,000 - 30,000 370,000 100,000 270,000 210,600 59,400 4 South Pickering Heritage Inventory See note 1 2018-2020 54,000 - 1,350 52,650 40,500 12,150 9,477 2,673 5 Municipal Comprehensive Review See note 1 2022 500,000 - 37,500 462,500 125,000 337,500 263,250 74,250 6 Official Plan Review See note 1 2027 250,000 - 12,500 237,500 125,000 112,500 87,750 24,750 7 Comprehensive Zoning By-law Review See note 1 2018-2021 431,700 - 32,378 399,323 107,925 291,398 227,290 64,107 8 Planning Application Fee Review Study See note 1 2018 25,000 - 2,500 22,500 - 22,500 17,550 4,950 9 Community Improvement Plans for Durham Live Lands and for City Centre Lands See note 1 2019-2022 150,000 - 11,250 138,750 37,500 101,250 78,975 22,275 10 Infill and Replacement Housing in Established Neighborhoods See note 1 2018-2026 150,000 - 7,500 142,500 75,000 67,500 52,650 14,850 11 Library-Strategic Plan Library Services 2018 60,000 - 60,000 15,000 45,000 35,100 9,900 12 Library-Facilities/Master Plan Library Services 2018 54,000 - 54,000 13,500 40,500 31,590 8,910 13 Library-Strategic Plan Library Services 2022 60,000 - 60,000 15,000 45,000 35,100 9,900 14 Library-Strategic Plan Library Services 2026 60,000 - 60,000 15,000 45,000 35,100 9,900 15 Traffic Management Plan for Downtown Pickering Other Services Related to a Highway 2026 373,320 - 373,320 37,332 335,988 262,071 73,917 16 Transportation Demand Management Plan/Parking Management Plan (Seaton) Other Services Related to a Highway 2026 161,900 - 161,900 16,190 145,710 113,654 32,056 17 Neighbourhood Traffic Calming Measures Other Services Related to a Highway 2018-2027 150,000 - 150,000 15,000 135,000 105,300 29,700 18 Transportation Master Plan Update Other Services Related to a Highway 2027 400,000 - 400,000 40,000 360,000 280,800 79,200 19 Esplanade Study Provision See note 1 2018-2026 50,000 - 3,750 46,250 12,500 33,750 26,325 7,425 20 Fire Master Plan Protection Services 2019 134,900 - 134,900 33,725 101,175 78,917 22,259 21 Brock Industrial Drainage Master Plan Stormwater Management 2018-2027 300,000 - 300,000 30,000 270,000 210,600 59,400 22 Stormwater Management Study for Infill Development Stormwater Management 2018-2027 215,800 - 215,800 53,950 161,850 126,243 35,607 23 Frenchman's Bay Stormwater Management Master Plan Update Stormwater Management 2018-2027 700,000 - 700,000 70,000 630,000 491,400 138,600 24 Pickering City Centre Stormwater Management Strategy Update Stormwater Management 2018-2027 250,000 - 250,000 25,000 225,000 175,500 49,500 25 SWM User Fee Study Stormwater Management 2018-2027 200,000 - 200,000 100,000 100,000 78,000 22,000 Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Potential DC Recoverable Cost Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2017$) Post Period Benefit Other DeductionsBenefitting Services - 193 - Watson & Associates Economists Ltd. PAGE 25 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 3-5 (Cont’d) Infrastructure Costs Covered in the D.C. Calculation – Growth-Related Studies Less: Prj.No Residential Share Non- Residential Share 2018-2027 78%22% 26 Community Engagement on Economic Impact and Employment - Highway 407 Corridor See note 1 2018 150,000 - 6,523 143,477 84,773 58,704 45,789 12,915 27 Pickering Corporate Energy Plan Update See note 1 2019 50,000 - 2,174 47,826 28,258 19,568 15,263 4,305 28 Seaton Corporate Energy Plan Update See note 1 2022 50,000 - 5,000 45,000 - 45,000 35,100 9,900 29 Pickering Climate Adaption Plan See note 1 2020 150,000 - 6,523 143,477 84,773 58,704 45,789 12,915 30 Broadband Strategy and Implementation Plan See note 1 2019 75,000 - 3,261 71,739 42,387 29,352 22,895 6,457 31 Natural Capital Asset Evaluation See note 1 2022 75,000 - 3,261 71,739 42,387 29,352 22,895 6,457 32 Facilities Management Plan See note 1 2018 150,000 - 11,250 138,750 37,500 101,250 78,975 22,275 33 Facilities Management Plan Update See note 1 2027 167,000 - 12,525 154,475 41,750 112,725 87,926 24,800 34 Facilities Renewal Plan See note 1 2018-2026 200,000 - 8,697 191,303 113,031 78,272 61,052 17,220 35 Facilities Way Finding Study See note 1 2018-2026 50,000 - 2,174 47,826 28,258 19,568 15,263 4,305 36 Space Use Study See note 1 2018 35,000 - 875 34,125 26,250 7,875 6,143 1,733 37 Urban Forest Management Parks and Recreation Services 2018-2026 97,100 - 97,100 24,275 72,825 56,804 16,022 38 Seaton Primary Trails IO EA Phase 1 & 2 Lands (including site walks, surveying, archaeology)Parks and Recreation Services 2018 400,000 - 400,000 - 400,000 312,000 88,000 39 Diversity and Inclusion Plan Parks and Recreation Services 2020 75,000 - 75,000 42,387 32,613 25,438 7,175 40 Age Friendly Community Plan Parks and Recreation Services 2018 75,000 - 75,000 42,387 32,613 25,438 7,175 41 Seniors Recreation Strategic Plan Parks and Recreation Services 2019 75,000 - 75,000 37,500 37,500 29,250 8,250 42 Recreation Services Master Plan Update Parks and Recreation Services 2027 170,000 - 170,000 42,500 127,500 99,450 28,050 43 Waterfront Park Needs Assessment Parks and Recreation Services 2019-2020 100,000 - 100,000 25,000 75,000 58,500 16,500 44 Whitevale Park Revitalization Study Parks and Recreation Services 2021 80,000 - 80,000 20,000 60,000 46,800 13,200 45 New Financial System See note 1 2018-2026 5,000,000 - 217,422 4,782,578 2,825,781 1,956,797 1,526,302 430,495 46 D.C. Amendment See note 1 2019-2020 60,664 - 60,664 - 60,664 47,318 13,346 47 Fair Minded Pricing Policy See note 1 2020 60,664 - 2,638 58,027 34,285 23,742 18,518 5,223 48 Geographic Information Systems (GIS) Corporate Strategic Plan: See note 1 2021-2022 136,600 - 5,940 130,660 77,200 53,460 41,699 11,761 49 Northeast Pickering (Veraine) Land Use Study See note 1 2021-2024 911,000 211,575 81,990 617,435 91,100 263,168 263,168 205,271 57,897 50 5-year Capital and Operating Cost Financial Impact Analysis See note 1 2021 25,000 - 1,087 23,913 14,129 9,784 7,632 2,152 - - Reserve Fund Adjustment 673,868 525,617 148,251 Total 13,798,649 211,575 510,068 13,077,006 4,909,033 263,168 8,578,674 6,691,366 1,887,308 1. Growth related studies have been included in relation to the eligible services in the following manner: 7,904,806 6,165,749 Service Share of Study Costs Other Services Related to a Highway 6% Protection Services 10% Parks and Recreation Services 68% Library Services 11% Stormwater Management 4% Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2017$) Post Period Benefit Other DeductionsBenefitting Services Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Potential DC Recoverable Cost - 194 - Watson & Associates Economists Ltd. PAGE 26 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx 4. Revised D.C. Calculation and Schedule of Charges Based on the proposed amendments to the D.C. eligible costs included in the 2017 D.C. Background Study and 2019 Update Study that have been detailed in in Chapter 3, the calculated schedule of charges is provided in Table 4-1 below. The charges are provided in 2018$ consistent with Table 6-5 of the 2017 D.C. Background Study. Table 4-2 provides the amended schedule of charges indexed to 2020$ values. A comparison of the amended charges herein (indexed to 20 20$), with the City’s current 2020 D.C. rates is provided in Table 4-3. In total, D.C.s for the single and semi- detached dwelling units outside of the Seaton Lands would increase by $4,040 per unit (+24%) and the non-residential charge would increase by $0.92 per sq.ft. of GFA (+27%). For development within the Seaton Lands, the single and semi-detached D.C. would increase by $999 per unit (+10%), the prestige employment land charge would increase by $2,543 per net hectare (+5%), and the non-residential charge for all other uses would increase by $0.07 per sq.ft. GFA (+5%). Detailed cash-flow calculation tables underlying the calculation of the D.C.s, are provided in Tables 4-4 through 4-14. Table 4-1 Amended Schedule of Development Charges (201 8$) Single and Semi-Detached Dwelling Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom Other Multiples (per ft² of Total Floor Area) 2 (per net Ha of Prestige Employment Land in Seaton) Municipal Wide Services/Classes: Other Services Related to a Highway 441 279 197 356 0.15 5,451 Protection Services 896 566 401 724 0.34 11,522 Parks and Recreation Services 6,821 4,309 3,053 5,507 0.53 17,885 Library Services 1,127 712 505 910 0.08 2,693 Growth-Related Studies 299 189 134 242 0.11 3,846 Stormwater Management 288 182 129 233 0.10 3,503 Total Municipal Wide Services/Classes:9,872 6,237 4,419 7,972 1.31 44,900 Outside of Seaton Lands Transportation 1 9,292 5,870 4,159 7,502 2.61 Total Services Outside of Seaton Lands 9,292 5,870 4,159 7,502 2.61 Rest of Pickering 19,164 12,107 8,578 15,474 3.92 Service/Class RESIDENTIAL NON-RESIDENTIAL 1. Subject to a separate agreement outside of the Development Charges Act concerning the provision of Transportation requirements in addition to other funding contributions 2. Does not apply to prestige employment development in Seaton, as that development is subject to the per net Ha land area charge instead. - 195 - Watson & Associates Economists Ltd. PAGE 27 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 4-2 Amended Schedule of Development Charges (20 20$) Single and Semi-Detached Dwelling Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom Other Multiples (per ft² of Total Floor Area) 2 (per net Ha of Prestige Employment Land in Seaton) Municipal Wide Services/Classes: Other Services Related to a Highway 483 306 216 391 0.17 5,983 Protection Services 983 621 440 795 0.36 12,647 Parks and Recreation Services 7,488 4,730 3,351 6,045 0.58 19,633 Library Services 1,237 782 554 999 0.09 2,956 Growth-Related Studies 328 207 147 266 0.12 4,222 Stormwater Management 316 200 142 256 0.11 3,846 Total Municipal Wide Services/Classes:10,835 6,847 4,851 8,751 1.43 49,287 Outside of Seaton Lands Transportation 1 10,200 6,444 4,565 8,235 2.87 - Total Services Outside of Seaton Lands 10,200 6,444 4,565 8,235 2.87 Rest of Pickering 21,035 13,290 9,416 16,986 4.30 Service/Class RESIDENTIAL NON-RESIDENTIAL 1. Subject to a separate agreement outside of the Development Charges Act concerning the provision of Transportation requirements in addition to other funding contributions 2. Does not apply to prestige employment development in Seaton, as that development is subject to the per net Ha land area charge instead. - 196 - Watson & Associates Economists Ltd. PAGE 28 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 4-3 Comparison of Development Charges (2020$) Current 2020 Amendment Change ($)Change (%)Current 2020 Amendment Change ($)Change (%)Current 2020 Amendment Change ($)Change (%) Municipal Wide Services/Classes: Other Services Related to a Highway 483 483 - 0%0.17 0.17 - 0%5,983 5,983 - 0% Protection Services 983 983 - 0%0.36 0.36 - 0%12,647 12,647 - 0% Parks and Recreation Services 6,639 7,488 849 13%0.53 0.58 0.05 9%17,602 19,633 2,031 12% Library Services 1,100 1,237 137 12%0.07 0.09 0.02 29%2,631 2,956 325 12% Growth Related Studies 315 328 13 4%0.12 0.12 - 0%4,035 4,222 187 5% Stormwater Management 316 316 - 0%0.11 0.11 - 0%3,846 3,846 - 0% Total Municipal Wide Services/Classes 9,836 10,835 999 10%1.36 1.43 0.07 5%46,744 49,287 2,543 5% Outside of Seaton Lands Transportation 1 7,159 10,200 3,041 42%2.02 2.87 0.85 42%- Total Services Outside of Seaton Lands 7,159 10,200 3,041 42%2.02 2.87 0.85 42%- - - 0% Seaton 9,836 10,835 999 10%1.36 1.43 0.07 5%46,744 49,287 2,543 5% Rest of Pickering 16,995 21,035 4,040 24%3.38 4.30 0.92 27%46,744 49,287 2,543 Residential Single and Semi-Detached Dwelling Non-Residential (per ft² of Total Floor Area) 2 Non-Residential (per net Ha of Prestige Employment Land in Seaton)Service/Class - 197 - Watson & Associates Economists Ltd. PAGE 29 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 4-4 Cash Flow Analysis Transportation Services – Residential Interest Nominal Inflated (3%/Yr) (2.5% on positive balances & 5% on negative balances) 2018 16,789,573$ (4,907,814)$ (5,055,049)$ 1,145 9,292 10,642,390 5,587,341$ 489,581$ 22,866,496$ 2019 22,866,496$ (8,513,368)$ (9,031,832)$ 1,145 9,571 10,961,661 1,929,829$ 595,785$ 25,392,110$ 2020 25,392,110$ (7,413,133)$ (8,100,530)$ 1,145 9,858 11,290,511 3,189,981$ 674,678$ 29,256,768$ 2021 29,256,768$ (9,690,827)$ (10,907,111)$ 1,145 10,154 11,629,226 722,115$ 740,446$ 30,719,329$ 2022 30,719,329$ (16,470,417)$ (19,093,727)$ 1,145 10,458 11,978,103 (7,115,624)$ 679,038$ 24,282,742$ 2023 24,282,742$ (16,470,417)$ (19,666,539)$ 802 10,772 8,634,624 (11,031,915)$ 469,170$ 13,719,997$ 2024 13,719,997$ (16,470,417)$ (20,256,535)$ 802 11,095 8,893,663 (11,362,872)$ 200,964$ 2,558,089$ 2025 2,558,089$ (3,700,521)$ (4,687,709)$ 802 11,428 9,160,473 4,472,764$ 119,862$ 7,150,715$ 2026 7,150,715$ (3,700,521)$ (4,828,340)$ 802 11,771 9,435,287 4,606,947$ 236,355$ 11,994,016$ 2027 11,994,016$ (3,700,521)$ (4,973,191)$ 802 12,124 9,718,346 4,745,155$ 359,165$ 17,098,336$ 2028 17,098,336$ (3,700,521)$ (5,122,386)$ 76 12,488 945,832 (4,176,554)$ 375,251$ 13,297,034$ 2029 13,297,034$ (3,700,521)$ (5,276,058)$ 76 12,862 974,207 (4,301,850)$ 278,653$ 9,273,836$ 2030 9,273,836$ (3,700,521)$ (5,434,340)$ 76 13,248 1,003,434 (4,430,906)$ 176,460$ 5,019,389$ 2031 5,019,389$ (3,700,521)$ (5,597,370)$ 38 13,646 516,768 (5,080,602)$ 61,212$ 0$ Year D.C. Reserve Fund Opening Balance Dev't Related Expenditures SDE per Year DC Rates w. Inflation (3%/Yr) Anticipated Revenues Revenues minus Expenditures Debenture Financing Requirement DC Reserve Fund Closing Balance after Financing - 198 - Watson & Associates Economists Ltd. PAGE 30 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 4-5 Cash Flow Analysis Transportation Services – Non-Residential Interest Nominal Inflated (3%/Yr) (2.5% on positive balances & 5% on negative balances) 2018 1,459,963$ (426,766)$ (439,569)$ 279,599 2.61$ 729,556$ 289,986$ 40,124$ 1,790,073$ 2019 1,790,073$ (740,293)$ (785,377)$ 279,599 2.69$ 751,443$ (33,934)$ 44,328$ 1,800,467$ 2020 1,800,467$ (644,620)$ (704,394)$ 279,599 2.77$ 773,986$ 69,592$ 45,882$ 1,915,940$ 2021 1,915,940$ (842,681)$ (948,444)$ 279,599 2.85$ 797,205$ (151,239)$ 46,008$ 1,810,709$ 2022 1,810,709$ (1,432,210)$ (1,660,324)$ 279,599 2.94$ 821,122$ (839,202)$ 34,778$ 1,006,285$ 2023 1,006,285$ (1,432,210)$ (1,710,134)$ 279,599 3.02$ 845,755$ (864,379)$ 14,352$ 156,258$ 2024 156,258$ (1,432,210)$ (1,761,438)$ 279,599 3.12$ 871,128$ (890,310)$ (16,398)$ (750,450)$ 2025 (750,450)$ (321,784)$ (407,627)$ 279,599 3.21$ 897,262$ 489,635$ (25,282)$ (286,096)$ 2026 (286,096)$ (321,784)$ (419,856)$ 279,599 3.31$ 924,180$ 504,324$ (4,425)$ 213,803$ 2027 213,803$ (321,784)$ (432,451)$ 279,599 3.40$ 951,905$ 519,454$ 11,838$ 745,095$ 2028 745,095$ (321,784)$ (445,425)$ 84,250 3.51$ 295,436$ (149,989)$ 16,753$ 611,859$ 2029 611,859$ (321,784)$ (458,788)$ 84,250 3.61$ 304,299$ (154,488)$ 13,365$ 470,736$ 2030 470,736$ (321,784)$ (472,551)$ 84,250 3.72$ 313,428$ (159,123)$ 9,779$ 321,393$ 2031 321,393$ (321,784)$ (486,728)$ 42,125 3.83$ 161,416$ (325,312)$ 3,919$ 0$ Year D.C. Reserve Fund Opening Balance Dev't Related Expenditures GFA per Year DC Rates w. Inflation (3%/Yr) Anticipated Revenues Revenues minus Expenditures Debenture Financing Requirement DC Reserve Fund Closing Balance after Financing - 199 - Watson & Associates Economists Ltd. PAGE 31 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 4-6 Cash Flow Analysis Parks and Recreation Services – Residential Table 4-7 Cash Flow Analysis Parks and Recreation Services – Seaton Prestige Employment Land Interest Nominal Inflated (3%/Yr) (2.5% on positive balances & 5% on negative balances) 2018 15,701,991$ (4,023,685)$ (4,144,396)$ -$ 2,499 6,821$ 17,042,615$ 12,898,219$ (438,576)$ 548,295$ 28,709,930$ 2019 28,709,930$ (4,630,064)$ (4,912,035)$ (1,023,477)$ 2,499 7,025$ 17,553,893$ 11,618,381$ (438,576)$ 857,496$ 40,747,231$ 2020 40,747,231$ (3,759,154)$ (4,107,729)$ (2,398,041)$ 2,499 7,236$ 18,080,510$ 11,574,740$ (438,576)$ 1,157,883$ 53,041,277$ 2021 53,041,277$ (15,274,431)$ (17,191,507)$ (3,772,605)$ 2,499 7,453$ 18,622,926$ (2,341,186)$ (438,576)$ 1,291,285$ 51,552,800$ 2022 51,552,800$ (47,901,351)$ (55,530,794)$ (3,772,605)$ 2,499 7,677$ 19,181,613$ (40,121,786)$ (438,576)$ 781,815$ 11,774,254$ 2023 11,774,254$ (4,651,901)$ (5,554,613)$ (3,772,605)$ 2,155 7,907$ 17,039,090$ 7,711,872$ (438,576)$ 385,273$ 19,432,822$ 2024 19,432,822$ (6,768,092)$ (8,323,900)$ (3,772,605)$ 2,155 8,144$ 17,550,262$ 5,453,758$ (438,576)$ 548,510$ 24,996,514$ 2025 24,996,514$ (2,340,973)$ (2,965,475)$ (3,772,605)$ 2,155 8,388$ 18,076,770$ 11,338,690$ (438,576)$ 761,164$ 36,657,793$ 2026 36,657,793$ (3,080,382)$ (4,019,200)$ (3,772,605)$ 2,155 8,640$ 18,619,073$ 10,827,268$ (438,576)$ 1,046,303$ 48,092,789$ 2027 48,092,789$ (10,258,819)$ (13,786,995)$ (53,631,360)$ 2,155 8,899$ 19,177,645$ (48,240,710)$ (438,576)$ 586,497$ -$ Year D.C. Reserve Fund Opening Balance Dev't Related Expenditures Existing Debt Carrying Costs (P&I) SDE per Year DC Rates w. Inflation (3%/Yr) Anticipated Revenues Revenues minus Expenditures Debenture Financing Requirement DC Reserve Fund Closing Balance after Financing Interest Nominal Inflated (3%/Yr) (2.5% on positive balances & 5% on negative balances) 2018 2,760$ (75,953)$ (78,232)$ -$ 18 17,885$ 328,549$ 250,318$ (8,279)$ 3,094$ 247,894$ 2019 247,894$ (87,399)$ (92,722)$ (19,320)$ 18 18,421$ 338,406$ 226,364$ (8,279)$ 8,923$ 474,903$ 2020 474,903$ (70,960)$ (77,539)$ (45,267)$ 18 18,974$ 348,558$ 225,752$ (8,279)$ 14,591$ 706,967$ 2021 706,967$ (288,328)$ (324,515)$ (71,214)$ 18 19,543$ 359,015$ (36,714)$ (8,279)$ 17,112$ 679,086$ 2022 679,086$ (904,209)$ (1,048,226)$ (71,214)$ 18 20,129$ 369,785$ (749,655)$ (8,279)$ 6,517$ (72,330)$ 2023 (72,330)$ (87,812)$ (104,852)$ (71,214)$ 18 20,733$ 380,879$ 204,814$ (8,279)$ (256)$ 123,949$ 2024 123,949$ (127,758)$ (157,126)$ (71,214)$ 18 21,355$ 392,305$ 163,966$ (8,279)$ 5,045$ 284,681$ 2025 284,681$ (44,189)$ (55,978)$ (71,214)$ 18 21,996$ 404,074$ 276,883$ (8,279)$ 10,475$ 563,760$ 2026 563,760$ (58,147)$ (75,868)$ (71,214)$ 18 22,656$ 416,197$ 269,115$ (8,279)$ 17,354$ 841,950$ 2027 841,950$ (193,650)$ (260,250)$ (1,012,372)$ 18 23,336$ 428,682$ (843,939)$ (8,279)$ 10,268$ -$ Year D.C. Reserve Fund Opening Balance Dev't Related Expenditures Existing Debt Carrying Costs (P&I) Net Hectares per Year DC Rates w. Inflation (3%/Yr) Anticipated Revenues Revenues minus Expenditures Debenture Financing Requirement DC Reserve Fund Closing Balance after Financing - 200 - Watson & Associates Economists Ltd. PAGE 32 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 4-8 Cash Flow Analysis Parks and Recreation Services – Other Non- Residential Table 4-9 Cash Flow Analysis Library Services – Residential Interest Nominal Inflated (3%/Yr) (2.5% on positive balances & 5% on negative balances) 2018 4,936$ (135,820)$ (139,894)$ -$ 1,118,519 0.53$ 587,515$ 447,620$ (14,804)$ 5,534$ 443,286$ 2019 443,286$ (156,288)$ (165,806)$ (34,548)$ 1,118,519 0.54$ 605,140$ 404,787$ (14,804)$ 15,957$ 849,225$ 2020 849,225$ (126,891)$ (138,657)$ (80,946)$ 1,118,519 0.56$ 623,295$ 403,692$ (14,804)$ 26,092$ 1,264,204$ 2021 1,264,204$ (515,590)$ (580,301)$ (127,345)$ 1,118,519 0.57$ 641,993$ (65,652)$ (14,804)$ 30,599$ 1,214,347$ 2022 1,214,347$ (1,616,915)$ (1,874,447)$ (127,345)$ 1,118,519 0.59$ 661,253$ (1,340,539)$ (14,804)$ 11,654$ (129,341)$ 2023 (129,341)$ (157,025)$ (187,496)$ (127,345)$ 1,118,519 0.61$ 681,091$ 366,250$ (14,804)$ (457)$ 221,647$ 2024 221,647$ (228,458)$ (280,974)$ (127,345)$ 1,118,519 0.63$ 701,523$ 293,205$ (14,804)$ 9,021$ 509,069$ 2025 509,069$ (79,020)$ (100,100)$ (127,345)$ 1,118,519 0.65$ 722,569$ 495,125$ (14,804)$ 18,731$ 1,008,120$ 2026 1,008,120$ (103,979)$ (135,668)$ (127,345)$ 1,118,519 0.67$ 744,246$ 481,233$ (14,804)$ 31,033$ 1,505,583$ 2027 1,505,583$ (346,287)$ (465,381)$ (1,810,332)$ 1,118,519 0.69$ 766,574$ (1,509,139)$ (14,804)$ 18,361$ -$ Year D.C. Reserve Fund Opening Balance Dev't Related Expenditures Existing Debt Carrying Costs (P&I) GFA per Year DC Rates w. Inflation (3%/Yr) Anticipated Revenues Revenues minus Expenditures Debenture Financing Requirement DC Reserve Fund Closing Balance after Financing Interest Nominal Inflated (3%/Yr) (2.5% on positive balances & 5% on negative balances) 2018 2,658,843$ (581,831)$ (599,286)$ (91,429)$ 2,499 1,127$ 2,817,098$ 2,126,383$ 93,051$ 4,878,276$ 2019 4,878,276$ (3,054,614)$ (3,240,640)$ (636,087)$ 2,499 1,161$ 2,901,611$ (975,116)$ 109,768$ 4,012,928$ 2020 4,012,928$ -$ -$ (1,180,745)$ 2,499 1,196$ 2,988,659$ 1,807,914$ 122,922$ 5,943,765$ 2021 5,943,765$ (1,263,251)$ (1,421,800)$ (1,180,745)$ 2,499 1,232$ 3,078,319$ 475,774$ 154,541$ 6,574,080$ 2022 6,574,080$ (1,992,092)$ (2,309,381)$ (1,180,745)$ 2,499 1,269$ 3,170,669$ (319,457)$ 160,359$ 6,414,982$ 2023 6,414,982$ (1,685,860)$ (2,013,004)$ (1,180,745)$ 2,155 1,307$ 2,816,515$ (377,234)$ 155,659$ 6,193,407$ 2024 6,193,407$ -$ -$ (1,180,745)$ 2,155 1,346$ 2,901,011$ 1,720,266$ 176,339$ 8,090,012$ 2025 8,090,012$ -$ -$ (1,180,745)$ 2,155 1,387$ 2,988,041$ 1,807,296$ 224,841$ 10,122,149$ 2026 10,122,149$ -$ -$ (1,180,745)$ 2,155 1,428$ 3,077,682$ 1,896,937$ 276,765$ 12,295,852$ 2027 12,295,852$ -$ -$ (15,615,814)$ 2,155 1,471$ 3,170,013$ (12,445,801)$ 149,949$ -$ Year D.C. Reserve Fund Opening Balance Dev't Related Expenditures Existing Debt Carrying Costs (P&I) SDE per Year DC Rates w. Inflation (3%/Yr) Anticipated Revenues Revenues minus Expenditures Debenture Financing Requirement DC Reserve Fund Closing Balance after Financing - 201 - Watson & Associates Economists Ltd. PAGE 33 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 4-10 Cash Flow Analysis Library Services – Seaton Prestige Employment Lands Table 4-11 Cash Flow Analysis Library Services – Other Non-Residential Interest Nominal Inflated (3%/Yr) (2.5% on positive balances & 5% on negative balances) 2018 50,190$ (10,983)$ (11,312)$ (1,726)$ 18 2,693$ 49,475$ 36,436$ 1,710$ 88,336$ 2019 88,336$ (57,660)$ (61,172)$ (12,007)$ 18 2,774$ 50,959$ (22,220)$ 1,931$ 68,047$ 2020 68,047$ -$ -$ (22,288)$ 18 2,857$ 52,488$ 30,199$ 2,079$ 100,325$ 2021 100,325$ (23,846)$ (26,839)$ (22,288)$ 18 2,943$ 54,062$ 4,935$ 2,570$ 107,830$ 2022 107,830$ (37,604)$ (43,593)$ (22,288)$ 18 3,031$ 55,684$ (10,197)$ 2,568$ 100,201$ 2023 100,201$ (31,823)$ (37,998)$ (22,288)$ 18 3,122$ 57,355$ (2,932)$ 2,468$ 99,737$ 2024 99,737$ -$ -$ (22,288)$ 18 3,216$ 59,075$ 36,787$ 2,953$ 139,477$ 2025 139,477$ -$ -$ (22,288)$ 18 3,312$ 60,848$ 38,559$ 3,969$ 182,005$ 2026 182,005$ -$ -$ (22,288)$ 18 3,412$ 62,673$ 40,385$ 5,055$ 227,445$ 2027 227,445$ -$ -$ (294,772)$ 18 3,514$ 64,553$ (230,219)$ 2,774$ -$ Year D.C. Reserve Fund Opening Balance Dev't Related Expenditures Existing Debt Carrying Costs (P&I) Net Hectares per Year DC Rates w. Inflation (3%/Yr) Anticipated Revenues Revenues minus Expenditures Debenture Financing Requirement DC Reserve Fund Closing Balance after Financing Interest Nominal Inflated (3%/Yr) (2.5% on positive balances & 5% on negative balances) 2018 89,749$ (19,640)$ (20,229)$ (3,086)$ 1,118,519 0.08$ 88,471$ 65,156$ 3,058$ 157,963$ 2019 157,963$ (103,109)$ (109,388)$ (21,471)$ 1,118,519 0.08$ 91,125$ (39,734)$ 3,452$ 121,682$ 2020 121,682$ -$ -$ (39,856)$ 1,118,519 0.08$ 93,859$ 54,003$ 3,717$ 179,401$ 2021 179,401$ (42,641)$ (47,993)$ (39,856)$ 1,118,519 0.09$ 96,675$ 8,825$ 4,595$ 192,822$ 2022 192,822$ (67,243)$ (77,953)$ (39,856)$ 1,118,519 0.09$ 99,575$ (18,235)$ 4,593$ 179,180$ 2023 179,180$ (56,906)$ (67,949)$ (39,856)$ 1,118,519 0.09$ 102,562$ (5,243)$ 4,414$ 178,351$ 2024 178,351$ -$ -$ (39,856)$ 1,118,519 0.09$ 105,639$ 65,783$ 5,281$ 249,414$ 2025 249,414$ -$ -$ (39,856)$ 1,118,519 0.10$ 108,808$ 68,952$ 7,097$ 325,463$ 2026 325,463$ -$ -$ (39,856)$ 1,118,519 0.10$ 112,072$ 72,216$ 9,039$ 406,719$ 2027 406,719$ -$ -$ (527,113)$ 1,118,519 0.10$ 115,434$ (411,679)$ 4,960$ -$ Year D.C. Reserve Fund Opening Balance Dev't Related Expenditures Existing Debt Carrying Costs (P&I) GFA per Year DC Rates w. Inflation (3%/Yr) Anticipated Revenues Revenues minus Expenditures Debenture Financing Requirement DC Reserve Fund Closing Balance after Financing - 202 - Watson & Associates Economists Ltd. PAGE 34 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 4-12 Cash Flow Analysis Growth-Related Studies Services – Residential Table 4-13 Cash Flow Analysis Growth-Related Studies– Seaton Prestige Employment Lands Interest Nominal Inflated (3%/Yr) (2.5% on positive balances & 5% on negative balances) 2018 (525,617)$ (994,626)$ (1,024,465)$ 2,499 299$ 747,694$ (276,771)$ (33,200)$ (835,588)$ 2019 (835,588)$ (661,018)$ (701,274)$ 2,499 308$ 770,125$ 68,851$ (40,058)$ (806,795)$ 2020 (806,795)$ (604,440)$ (660,487)$ 2,499 317$ 793,228$ 132,741$ (37,021)$ (711,075)$ 2021 (711,075)$ (515,024)$ (579,664)$ 2,499 327$ 817,025$ 237,361$ (29,620)$ (503,334)$ 2022 (503,334)$ (857,615)$ (994,210)$ 2,499 337$ 841,536$ (152,674)$ (28,984)$ (684,991)$ 2023 (684,991)$ (363,177)$ (433,652)$ 2,155 347$ 747,539$ 313,887$ (26,402)$ (397,507)$ 2024 (397,507)$ (363,177)$ (446,662)$ 2,155 357$ 769,965$ 323,303$ (11,793)$ (85,996)$ 2025 (85,996)$ (311,859)$ (395,054)$ 2,155 368$ 793,064$ 398,010$ 1,750$ 313,765$ 2026 313,765$ (722,684)$ (942,938)$ 2,155 379$ 816,856$ (126,082)$ 6,268$ 193,951$ 2027 193,951$ (772,130)$ (1,037,678)$ 2,155 390$ 841,362$ (196,316)$ 2,365$ (0)$ Year D.C. Reserve Fund Opening Balance Dev't Related Expenditures SDE per Year DC Rates w. Inflation (3%/Yr) Anticipated Revenues Revenues minus Expenditures Debenture Financing Requirement DC Reserve Fund Closing Balance after Financing Interest Nominal Inflated (3%/Yr) (2.5% on positive balances & 5% on negative balances) 2018 (53,171)$ (100,615)$ (103,633)$ 18 3,846$ 70,647$ (32,987)$ (3,483)$ (89,641)$ 2019 (89,641)$ (66,868)$ (70,940)$ 18 3,961$ 72,766$ 1,826$ (4,436)$ (92,251)$ 2020 (92,251)$ (61,144)$ (66,814)$ 18 4,080$ 74,949$ 8,135$ (4,409)$ (88,525)$ 2021 (88,525)$ (52,099)$ (58,638)$ 18 4,202$ 77,197$ 18,559$ (3,962)$ (73,928)$ 2022 (73,928)$ (86,755)$ (100,573)$ 18 4,328$ 79,513$ (21,060)$ (4,223)$ (99,210)$ 2023 (99,210)$ (36,738)$ (43,868)$ 18 4,458$ 81,899$ 38,031$ (4,010)$ (65,189)$ 2024 (65,189)$ (36,738)$ (45,184)$ 18 4,592$ 84,356$ 39,172$ (2,280)$ (28,297)$ 2025 (28,297)$ (31,547)$ (39,963)$ 18 4,730$ 86,886$ 46,923$ (475)$ 18,151$ 2026 18,151$ (73,106)$ (95,386)$ 18 4,872$ 89,493$ (5,893)$ 380$ 12,638$ 2027 12,638$ (78,108)$ (104,970)$ 18 5,018$ 92,178$ (12,792)$ 154$ -$ Year D.C. Reserve Fund Opening Balance Dev't Related Expenditures Net Hectares per Year DC Rates w. Inflation (3%/Yr) Anticipated Revenues Revenues minus Expenditures Debenture Financing Requirement DC Reserve Fund Closing Balance after Financing - 203 - Watson & Associates Economists Ltd. PAGE 35 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 4-14 Cash Flow Analysis Growth-Related Studies – Other Non-Residential Interest Nominal Inflated (3%/Yr) (2.5% on positive balances & 5% on negative balances) 2018 (95,080)$ (179,921)$ (185,318)$ 1,118,519 0.11$ 126,331$ (58,987)$ (6,229)$ (160,296)$ 2019 (160,296)$ (119,573)$ (126,855)$ 1,118,519 0.12$ 130,121$ 3,265$ (7,933)$ (164,964)$ 2020 (164,964)$ (109,339)$ (119,477)$ 1,118,519 0.12$ 134,024$ 14,547$ (7,885)$ (158,301)$ 2021 (158,301)$ (93,164)$ (104,857)$ 1,118,519 0.12$ 138,045$ 33,188$ (7,085)$ (132,199)$ 2022 (132,199)$ (155,136)$ (179,845)$ 1,118,519 0.13$ 142,186$ (37,659)$ (7,551)$ (177,409)$ 2023 (177,409)$ (65,696)$ (78,445)$ 1,118,519 0.13$ 146,452$ 68,008$ (7,170)$ (116,572)$ 2024 (116,572)$ (65,696)$ (80,798)$ 1,118,519 0.13$ 150,846$ 70,048$ (4,077)$ (50,601)$ 2025 (50,601)$ (56,413)$ (71,462)$ 1,118,519 0.14$ 155,371$ 83,909$ (849)$ 32,458$ 2026 32,458$ (130,728)$ (170,571)$ 1,118,519 0.14$ 160,032$ (10,539)$ 680$ 22,600$ 2027 22,600$ (139,673)$ (187,708)$ 1,118,519 0.15$ 164,833$ (22,875)$ 276$ 0$ Year D.C. Reserve Fund Opening Balance Dev't Related Expenditures GFA per Year DC Rates w. Inflation (3%/Yr) Anticipated Revenues Revenues minus Expenditures Debenture Financing Requirement DC Reserve Fund Closing Balance after Financing - 204 - Watson & Associates Economists Ltd. PAGE 36 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx 5. D.C. Policy Recommendations and D.C. By -law Rules The City’s current D.C. by-law provides for the uniform City-wide recovery of growth- related costs for all services other than Transportation, which are imposed on an area - specific for development outside of the Seaton Lands only. D.C.s are imposed for al l services though one by-law. The rules within the City’s by-law effectively assess the charges appropriately for the imposition of D.C.s within the City. The intent of the amendment does not alter the City’s policy for the imposition of City -wide or area- specific D.C.s. As a result, it is not recommended that separate by-laws be implemented through this amendment process, and that the proposed revisions be considered as an amendment to the City’s current comprehensive D.C. by-law. Other than those polices revisions identified in Sections 5.1 and 5.2, all other rules and polices contained within By-law 7595-17 (as amended) remain unchanged. 5.1 D.C. Calculation and Collection Policies The recent amendments to the D.C.A. provide for mandatory installments payments of D.C.s for rental housing, non-profit housing, and institutional development as follows: • Effective January 1, 2020, rental housing and institutional developments will pay D.C.s in six equal annual installments, with the first payment commencing at the date of occupancy. Non-profit housing developments will pay D.C.s in 21 equal annual installments. Interest may be charged on the installments, and any unpaid amounts may be added to the property and collected as taxes. Furthermore, the D.C.s for development proceeding through the site plan or zoning by- law amendment planning approvals processes will be calculated on the date the planning application is received and will be payable at building permit issuance. • Effective January 1, 2020, the D.C. amount for all developments occurring within two years of a site plan or zoning by-law amendment planning approval (for applications submitted after this section is proclaimed) shall be determined based on the D.C. charge in effect on the day of site plan o r zoning by-law amendment application. If the development is not proceeding via these planning approvals, - 205 - Watson & Associates Economists Ltd. PAGE 37 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx or if the building permit is issued after the two-year period of application approval, then the amount is determined the earlier of the date of issua nce of a building permit or occupancy. The D.C.A. also provides that municipalities may charge interest on the installment payments and charges calculated when the planning application is received. The City will be charging interest as set out in the City of Pickering D.C. Interest Policy (FIN 090). 5.2 Statutory Exemptions The amendments to the D.C.A. provide for the following additional statutory exemptions to the payment of D.C.s. Residential intensification exemptions have been expanded to allow for the creation of additional dwelling units within ancillary structures to existing residential payments without the payment of D.C.s. • S.2(3)(b) of the D.C.A. provides that D.C.s are not payable for residential development that results only in the creation of up to two additional dwelling units in prescribed classes of existing residential buildings or prescribed structures ancillary to existing residential buildings, subject to the prescribed restrictions set out in section 2(1) of O.Reg. 82/98 (see Table 5 -1). Table 5-1 Prescribed Classes of Existing Residential Buildings, Prescribed Additional Dwelling Units, and Restrictions tem Name of Class of Existing Residential Building Description of Class of Existing Residential Buildings Maximum Number of Additional Dwelling Units Restrictions 1 Existing single detached dwellings Existing residential buildings, each of which contains a single dwelling unit, that are not attached to other buildings. Two The total gross floor area of the additional dwelling unit or units must be less than or equal to the gross floor area of the dwelling unit already in the building. 2 Existing semi- detached dwellings or row dwellings Existing residential buildings, each of which contains a single dwelling unit, that have one or two vertical walls, but no other parts, attached to other buildings. One The gross floor area of the additional dwelling unit must be less than or equal to the gross floor area of the dwelling unit already in the building. 3 Existing rental residential buildings Existing residential rental buildings, each of which contains four or more dwelling units. Greater of one and 1% of the existing units in the building None 4 Other existing residential buildings An existing residential building not in another class of residential building described in this table. One The gross floor area of the additional dwelling unit must be less than or equal to the gross floor area of the smallest dwelling unit already in the building. - 206 - Watson & Associates Economists Ltd. PAGE 38 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx The creation of a second dwelling unit in prescribed classes of proposed new residential buildings, including structures ancillary to dwellings are now also exempt from the payment of DCs, subject to the prescribed restrictions set out in section 2(3) of O.Reg. 82/98 (see Table 5-2) Table 5-2 Prescribed Classes of Proposed New Residential Buildings, and Restrictions Item Name of Class of Proposed New Residential Buildings Description of Class of Proposed New Residential Buildings Restrictions The proposed new detached dwelling must only contain two dwelling units. The proposed new detached dwelling must be located on a parcel of land on which no other detached dwelling, semi- detached dwelling or row dwelling would be located. The proposed new semi-detached dwelling or row dwelling must only contain two dwelling units. The proposed new semi-detached dwelling or row dwelling must be located on a parcel of land on which no other detached dwelling, semi-detached dwelling or row dwelling would be located. The proposed new detached dwelling, semi-detached dwelling or row dwelling, to which the proposed new residential building would be ancillary, must only contain one dwelling unit. The gross floor area of the dwelling unit in the proposed new residential building must be equal to or less than the gross floor area of the detached dwelling, semi-detached dwelling or row dwelling to which the proposed new residential building is ancillary. 3 Proposed new residential buildings that would be ancillary to a proposed new detached dwelling, semi- detached dwelling or row dwelling Proposed new residential buildings that would be ancillary to a proposed new detached dwelling, semi-detached dwelling or row dwelling and that are permitted to contain a single dwelling unit. 1 Proposed new detached dwellings Proposed new residential buildings that would not be attached to other buildings and that are permitted to contain a second dwelling unit, that being either of the two dwelling units, if the units have the same gross floor area, or the smaller of the dwelling units. 2 Proposed new semi- detached dwellings or row dwellings Proposed new residential buildings that would have one or two vertical walls, but no other parts, attached to other buildings and that are permitted to contain a second dwelling unit, that being either of the two dwelling units, if the units have the same gross floor area, or the smaller of the dwelling units. - 207 - Watson & Associates Economists Ltd. PAGE 39 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx 6. Asset Management Plan and Long-Term Capital and Operating Costs 6.1 Introduction The changes to the D.C.A. (new section 10(c.2)) through Bill 73, require that the background study must include an Asset Management Plan (A.M.P) related to new infrastructure. Section 10 (3) of the D.C.A. provides: The A.M.P. shall, (a) deal with all assets whose capital costs are proposed to be funded under the development charge by-law; (b) demonstrate that all the assets mentioned in clause (a) are financiall y sustainable over their full life cycle; (c) contain any other information that is prescribed; and (d) be prepared in the prescribed manner. The A.M.P. analysis included in the 2017 D.C. Background Study, which found that the capital plan was deemed to be financially sustainable, has been updated to account for the capital cost revisions described herein. The updated A.M.P. analysis contained in Table 6-1 identifies: • $65.6 million in total annualized expenditures; and • Incremental operating revenues of $49.7 million and existing operating revenues of $94.6 million, totalling $144.3 million by the end of the period. In consideration of the above changes, the capital plan still deemed to be financially sustainable. - 208 - Watson & Associates Economists Ltd. PAGE 40 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 6-1 2020 D.C. Amendment Asset Management – Future Expenditures and Associated Revenues (2017$) As a requirement of the D.C.A., 1997 under subsection 10(2)(c), an analysis must be undertaken to assess the long-term capital and operating cost impacts for the capital infrastructure projects identified within the D.C. Table 6-2 summarizes the changes to the incremental annual operating costs associated with the D.C. eligible costs at full emplacement. Sub-Total 2031 (Total) Expenditures (Annualized) Annual Debt Payment on Non-Growth Related Capital1 10,365,787 Annual Debt Payment on Post Period Capital2 2,828,786 Lifecycle: Annual Lifecycle - Town Wide Services $9,945,029 Annual Lifecycle - Area Specific Services3 $4,757,161 Sub-Total - Annual Lifecycle $14,702,190 $14,702,190 Incremental Operating Costs (for D.C. Services)$37,752,031 Total Expenditures $65,648,794 Revenue (Annualized) Total Existing Revenue4 $94,578,893 Incremental Tax and Non-Tax Revenue (User Fees, Fines, Licences, etc.)$49,682,047 Total Revenues $144,260,940 4 As per Sch. 10 of FIR 3 Area-specific application of Transportation Services 1 Non-Growth Related component of Projects including 10% mandatory deduction on soft services 2 Interim Debt Financing for Post Period Benefit - 209 - Watson & Associates Economists Ltd. PAGE 41 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Table 6-2 2020 D.C. Amendment Operating and Capital Expenditure Impacts for Future Capital Expend itures SERVICE ANNUAL LIFECYCLE EXPENDITURES ANNUAL OPERATING EXPENDITURES TOTAL ANNUAL EXPENDITURES 1.Transportation 4,757,161 1,187,488 5,944,649 2.Stormwater Management 329,725 398,784 728,509 3.Other Services Related to a Highway 646,471 2,696,435 3,342,906 4.Protection Services 1,034,090 17,073,413 18,107,504 5.Parks and Recreation Services 6,720,101 9,909,507 16,629,608 6.Library Services 1,214,641 6,486,404 7,701,045 7.Growth-Related Studies - Total 14,702,190 37,752,031 52,454,221 - 210 - Watson & Associates Economists Ltd. PAGE 42 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx 7. Process for Adoption of the Amending Development Charges By -law If approved, the changes provided herein will form part of the 2020 D.C. Background Study. Appendix A to this D.C. Update Study includes the draft Amending D.C. By-law being presented for Council’s consideration . The D.C. Update Study, as amended and draft amending D.C. By-law will be presented to the public at a public meeting of Council to solicit public input on the proposed D.C. by -law. It is anticipated that Council will consider for adoption the proposed amending by -law at a subsequent meeting of Council (December 14, 2020), witnessing the 60-day period between the release of the D.C. Background Study and the passage of the D.C. By -law (i.e. no earlier than December 14, 2020). If Council is satisfied with the proposed changes to the D.C. Background Study and D.C. By-Law, it is recommended that Council: “Approve the Development Charges Update Study dated October 15, 2020, as amended; subject to further annual review during the capital budget process;” “Determine that no further public meeting is required;” and “Approve the Amending Development Charge By-law as set out herein” - 211 - Watson & Associates Economists Ltd. PAGE A-1 H:\Pickering\2020 DC Amendment\Report\2020 Update Study - Office Consolidation.docx Appendix A – Draft Amending Development Charge By-law - 212 - The Corporation of the City of Pickering By-law No. ____/20 Being a By-law Regarding Development Charges to amend By-law 7595/17, as amended by By-law 7727/19 to make certain revisions to the City’s development charges involving capital cost estimates and policies. WHEREAS Section 19 of the Development Charges Act, 1997, S.O. 1997, c27 (“the Act”) provides for amendments to be made to development charges by-laws; AND WHEREAS the Council of the Corporation of the City of Pickering (hereinafter called “the Council”) has determined that certain amendments should be made to the Development Charge By-law of the Corporation of the City of Pickering, being By-law 7595-17, as amended by By-law 7727/19; AND WHEREAS, in accordance with the Act, a development charges background study has been completed in respect of the proposed amendment; AND WHEREAS the Council of the Corporation of the City of Pickering has given noti ce and held a public meeting in accordance with the Act; and Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. By-law 7595/17, as amended by By-law 7727/19 is hereby amended as follows: a. The following sections are added to the by-law 2. (3) Notwithstanding subsection 2. (1), development charges for rental housing and institutional developments are due and payable in 6 installments commencing with the first installment payable on the date of occupancy, and each subsequent installment, including interest, payable on the anniversary date each year thereafter. 2. (4) Notwithstanding subsections 2. (1), development charges for non- profit housing developments are due and payable in 21 installments commencing with the first installment payable on the date of occupancy, and each subsequent installment, including interest, payable on the anniversary date each year thereafter. - 213 - 2. (5) Notwithstanding subsections 2. (1) to 2. (4), where the development of land results from the approval of a Site Plan or Zoning By-law Amendment received on or after January 1, 2020, and the approval of the application occurred within 2 years of building permit issuance, the Development Charges under Section 2 shall be calculated based on the rates set out in Schedule “C” on the date of the planning application, including interest. Where both planning applications apply, Development Charges under Section 2 shall be calculated on the rates, including interest, set out in Schedule “C” on the date of the later planning application. 2. (6) Interest for the purposes of subsections 2. (3) to 2. (4) shall be determined as set out in the City of Pickering # FIN-090, as amended from time to time. 2. (7) For the purposes of subsection 2. (3) “institutional development” means development of a building or structure intended for use: (a) as a long-term care home within the meaning of subsection 2 (1) of the Long Term Care Homes Act, 2007; (b) as a retirement home within the meaning of subsection 2 (1) of the Retirement Homes Act, 2010; (c) by any institution of the following post-secondary institutions for the objects of the institution: i. a university in Ontario that receives direct, regular and ongoing operation funding from the Government of Ontario; ii. a college or university federated or affiliated with a university described in subclause (i); or iii. an Indigenous Institute prescribed for the purposes of section 6 of the Indigenous Institute Act, 2017; (d) as a memorial home, clubhouse or athletic grounds b y an Ontario branch of the Royal Canadian Legion; or (e) as a hospice to provide end of life care; 2. (8) For the purposes of subsection 2. (3) ““Rental housing” means development of a building or structure with four or more dwelling units all of which are intended for use as rented residential premises; - 214 - 2. (9) For the purposes of subsection 2. (4) “Non-profit housing development” means development of a building or structure intended for use as residential premises by: (a) a corporation without share capital to which the Corporations Act applies, that is in good standing under that Act and whose primary objective is to provide housing; (b) a corporation without share capital to which the Canada Not -for- profit Corporation Act applies, that is in good standing under that Act and whose primary objective is to provide housing; or (c) a non-profit housing co-operative that is in good standing under the Co-operative Corporations Act; 7. (5) Section 6 shall not apply in respect of the creation of a second dwelling unit in prescribed classes of proposed new residential buildings, including structures ancillary to dwellings, subject to the following restrictions: b. Section 7.(1) is deleted and replaced with the following: Subject to subsections (2) and (3), Section 6 shall not apply in respect of a renovation, addition or installation which involves the creation of: (a) one or two additional dwelling an existing single-detached dwelling, or ancillary structure thereto; Item Name of Class of Proposed New Residential Buildings Description of Class of Proposed New Residential Buildings Restrictions The proposed new detached dwelling must only contain two dwelling units. The proposed new detached dwelling must be located on a parcel of land on which no other detached dwelling, semi- detached dwelling or row dwelling would be located. The proposed new semi-detached dwelling or row dwelling must only contain two dwelling units. The proposed new semi-detached dwelling or row dwelling must be located on a parcel of land on which no other detached dwelling, semi-detached dwelling or row dwelling would be located. The proposed new detached dwelling, semi-detached dwelling or row dwelling, to which the proposed new residential building would be ancillary, must only contain one dwelling unit. The gross floor area of the dwelling unit in the proposed new residential building must be equal to or less than the gross floor area of the detached dwelling, semi-detached dwelling or row dwelling to which the proposed new residential building is ancillary. 3 Proposed new residential buildings that would be ancillary to a proposed new detached dwelling, semi- detached dwelling or row dwelling Proposed new residential buildings that would be ancillary to a proposed new detached dwelling, semi-detached dwelling or row dwelling and that are permitted to contain a single dwelling unit. 1 Proposed new detached dwellings Proposed new residential buildings that would not be attached to other buildings and that are permitted to contain a second dwelling unit, that being either of the two dwelling units, if the units have the same gross floor area, or the smaller of the dwelling units. 2 Proposed new semi- detached dwellings or row dwellings Proposed new residential buildings that would have one or two vertical walls, but no other parts, attached to other buildings and that are permitted to contain a second dwelling unit, that being either of the two dwelling units, if the units have the same gross floor area, or the smaller of the dwelling units. - 215 - (b) an additional dwelling unit in any other existing residential building, or ancillary structure thereto; or (c) garden suites c. Schedule “A” is deleted and the attached Schedule “A” substitutes therefor d. Schedule “C” is deleted and the attached Schedule “C” substitutes therefor 2. This by-law shall come into force on December 15, 2020. By-law passed this 14th day of December 2020 _____________________________ Mayor _____________________________ Clerk - 216 - Schedule “A” Designated Municipal Services Under this By-law (a) Transportation Services, including roads, structures, sidewalks, streetlights, traffic signals and services related thereto; (b) Other Services Related to a Highway, including facilities, vehicles and equipment; (c) Protection Services, including facilities, vehicles, equipment, and services related thereto; (d) Parks and Recreation Services, including parkland development, trail development, facilities, vehicles, equipment, and services related thereto; (e) Library Services, including facilities, furnishings, equipment, and services related thereto, including circulating and non-circulating materials generally provided to library users by public libraries; (f) A class of service pertaining to Growth-Related Studies, including development- related capital studies and services related thereto; (g) Stormwater Management, including storm drainage and management works, equipment and services related thereto. - 217 - Schedule “C” City of Pickering Schedule of Development Charges Effective January 1, 2018 Single and Semi-Detached Dwelling Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom Other Multiples (per ft² of Total Floor Area) 2 (per net Ha of Prestige Employment Land in Seaton) Municipal Wide Services/Classes: Other Services Related to a Highway 441 279 197 356 0.15 5,451 Protection Services 896 566 401 724 0.34 11,522 Parks and Recreation Services 6,821 4,309 3,053 5,507 0.53 17,885 Library Services 1,127 712 505 910 0.08 2,693 Growth-Related Studies 299 189 134 242 0.11 3,846 Stormwater Management 288 182 129 233 0.10 3,503 Total Municipal Wide Services/Classes:9,872 6,237 4,419 7,972 1.31 44,900 Outside of Seaton Lands Transportation 1 9,292 5,870 4,159 7,502 2.61 Total Services Outside of Seaton Lands 9,292 5,870 4,159 7,502 2.61 Rest of Pickering 19,164 12,107 8,578 15,474 3.92 Service/Class RESIDENTIAL NON-RESIDENTIAL 1. Subject to a separate agreement outside of the Development Charges Act concerning the provision of Transportation requirements in addition to other funding contributions 2. Does not apply to prestige employment development in Seaton, as that development is subject to the per net Ha land area charge instead. - 218 - Attachment #2 to Report #FIN 19-20 The Corporation of the City of Pickering By-law No. 7802/20 Being a by-law regarding Development Charges to amend By-law 7595/17, as amended by By-law 7727/19 to make certain revisions to the City’s development charges involving capital cost estimates and policies. Whereas Section 19 of the Development Charges Act, 1997, S.O. 1997, c27 (“the Act”) provides for amendments to be made to development charges by-laws; Whereas the Council of the Corporation of the City of Pickering (hereinafter called “the Council”) has determined that certain amendments should be made to the Development Charge By -law of the Corporation of the City of Pickering, being By-law 7595/17, as amended by By-law 7727/19; Whereas in accordance with the Act, a development charges background study has been completed in respect of the proposed amendment; Whereas the Council of the Corporation of the City of Pickering has given notice and held a public meeting in accordance with the Act; and Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1.By-law 7595/17, as amended by By-law 7727/19 is hereby amended as follows: a.The following sections are added to the by-law 2. (3) Notwithstanding subsection 2. (1), development charges for rental housing and institutional developments are due and payable in 6 installments commencing with the first installment payable on the date of occupancy, a nd each subsequent installment, including interest, payable on the anniversary date each year thereafter. 2. (4) Notwithstanding subsections 2. (1), development charges for non-profit housing developments are due and payable in 21 installments commencing with the first installment payable on the date of occupancy, and each subsequent installment, including interest, payable on the anniversary date each year thereafter. 2. (5) Notwithstanding subsections 2. (1) to 2. (4), where the development of land results from the approval of a Site Plan or Zoning By-law Amendment received on or after January 1, 2020, and the approval of the application occurred within 2 years of building permit issuance, the Development Charges under Section 2 shall be calculated based on the rates set out in Schedule “C” on the date of the planning application, including interest. Where both planning applications apply, Development Charges under Section 2 shall be calculated on the rates, including interest, set out in Schedule “C” on the date of the later planning application. - 219 - 2. (6) Interest for the purposes of subsections 2. (3) to 2. (4) shall be determined as set out in the City of Pickering Report # FIN 09-20, as amended from time to time. 2. (7) For the purposes of subsection 2. (3) “institutional development” means development of a building or structure intended for use: (a)as a long-term care home within the meaning of subsection 2 (1) of the Long Term Care Homes Act, 2007; (b)as a retirement home within the meaning of subsection 2 (1) of the Retirement Homes Act, 2010; (c)by any institution of the following post-secondary institutions for the objects of the institution: i.a university in Ontario that receives direct, regular and ongoing operation funding from the Government of Ontario; ii.a college or university federated or affiliated with a university described in subclause (i); or iii.an Indigenous Institute prescribed for the purposes of section 6 of the Indigenous Institute Act, 2017; (d)as a memorial home, clubhouse or athletic grounds by an Ontario branch of the Royal Canadian Legion; or (e)as a hospice to provide end of life care; 2. (8) For the purposes of subsection 2. (3) “Rental housing” means development of a building or structure with four or more dwelling units all of which are intended for use as rented residential premises; 2. (9) For the purposes of subsection 2. (4) “Non-profit housing development” means development of a building or structure intended for use as residential premises by: (a)a corporation without share capital to which the Corporations Act applies, that is in good standing under that Act and whose primary objective is to provide housing; (b)a corporation without share capital to which the Canada Not-for-profit Corporation Act applies, that is in good standing under that Act and whose primary objective is to provide housing; or (c)a non-profit housing co-operative that is in good standing under the Co- operative Corporations Act; 7. (5) Section 6 shall not apply in respect of the creation of a second dwelling unit in prescribed classes of proposed new residential buildings, including structures ancillary to dwellings, subject to the following restrictions: - 220 - By-law No. 7802/20 Page 2 b.Section 7.(1) is deleted and replaced with the following: Subject to subsections (2) and (3), Section 6 shall not apply in respect of a renovation, addition or installation which involves the creation of: (a)one or two additional dwelling an existing single-detached dwelling, or ancillary structure thereto; (b)an additional dwelling unit in any other existing residential building, or ancillary structure thereto; or (c)garden suites c.Schedule “A” is deleted and the attached Schedule “A” substitutes therefor d.Schedule “C” is deleted and the attached Schedule “C” substitutes therefor 2.This by-law shall come into force on December 15, 2020. By-law passed this 14th day of December, 2020 ________________________________ David Ryan, Mayor ________________________________ Susan Cassel, City Clerk Item Name of Class of Proposed New Residential Buildings Description of Class of Proposed New Residential Buildings Restrictions The proposed new detached dwelling must only contain two dwelling units. The proposed new detached dwelling must be located on a parcel of land on which no other detached dwelling, semi- detached dwelling or row dwelling would be located. The proposed new semi-detached dwelling or row dwelling must only contain two dwelling units. The proposed new semi-detached dwelling or row dwelling must be located on a parcel of land on which no other detached dwelling, semi-detached dwelling or row dwelling would be located. The proposed new detached dwelling, semi-detached dwelling or row dwelling, to which the proposed new residential building would be ancillary, must only contain one dwelling unit. The gross floor area of the dwelling unit in the proposed new residential building must be equal to or less than the gross floor area of the detached dwelling, semi-detached dwelling or row dwelling to which the proposed new residential building is ancillary. 3 Proposed new residential buildings that would be ancillary to a proposed new detached dwelling, semi- detached dwelling or row dwelling Proposed new residential buildings that would be ancillary to a proposed new detached dwelling, semi-detached dwelling or row dwelling and that are permitted to contain a single dwelling unit. 1 Proposed new detached dwellings Proposed new residential buildings that would not be attached to other buildings and that are permitted to contain a second dwelling unit, that being either of the two dwelling units, if the units have the same gross floor area, or the smaller of the dwelling units. 2 Proposed new semi- detached dwellings or row dwellings Proposed new residential buildings that would have one or two vertical walls, but no other parts, attached to other buildings and that are permitted to contain a second dwelling unit, that being either of the two dwelling units, if the units have the same gross floor area, or the smaller of the dwelling units. - 221 - By-law No. 7802/20 Page 3 Schedule “A” Designated Municipal Services Under this By-law (a)Transportation Services, including roads, structures, sidewalks, streetlights, traffic signals and services related thereto; (b)Other Services Related to a Highway, including facilities, vehicles and equipment; (c)Protection Services, including facilities, vehicles, equipment, and services related thereto; (d)Parks and Recreation Services, including parkland development, trail development, facilities, vehicles, equipment, and services related thereto; (e)Library Services, including facilities, furnishings, equipment, and services related thereto, including circulating and non-circulating materials generally provided to library users by public libraries; (f)A class of service pertaining to Growth-Related Studies, including development-related capital studies and services related thereto; (g)Stormwater Management, including storm drainage and management works, equipment and services related thereto. - 222 - Schedule “C” City of Pickering Schedule of Development Charges Effective January 1, 2018 Single and Semi-Detached Dwelling Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom Other Multiples (per ft² of Total Floor Area) 2 (per net Ha of Prestige Employment Land in Seaton) Municipal Wide Services/Classes: Other Services Related to a Highway 441 279 197 356 0.15 5,451 Protection Services 896 566 401 724 0.34 11,522 Parks and Recreation Services 6,821 4,309 3,053 5,507 0.53 17,885 Library Services 1,127 712 505 910 0.08 2,693 Growth-Related Studies 299 189 134 242 0.11 3,846 Stormwater Management 288 182 129 233 0.10 3,503 Total Municipal Wide Services/Classes:9,872 6,237 4,419 7,972 1.31 44,900 Outside of Seaton Lands Transportation 1 9,292 5,870 4,159 7,502 2.61 Total Services Outside of Seaton Lands 9,292 5,870 4,159 7,502 2.61 Rest of Pickering 19,164 12,107 8,578 15,474 3.92 Service/Class RESIDENTIAL NON-RESIDENTIAL 1. Subject to a separate agreement outside of the Development Charges Act concerning the provision of Transportation requirements in addition to other funding contributions 2. Does not apply to prestige employment development in Seaton, as that development is subject to the per net Ha land area charge instead. - 223 - Memo To: Susan Cassel City Clerk December 8, 2020 From: Paul Bigioni Director, Corporate Services & City Solicitor Copy: Director, City Development & CBO Manager, Development Services Subject: Request for Road Establishing By-law -Part of Lots 27 to 30 and part of the road allowance between Lots 28 and 29, Concession 5 (Enterprise Gateway) File: Roadded.582/L-4610-13-18 The City is the current owner of the lands forming the Whitevale temporary by-pass road from Whites Road to North Road being: 1.Part of Lot 27, Concession 5, being Parts 2, 3 and 4, 40R-30787; 2.Part of Lot 28, Concession 5, being Parts 2 and 3, 40R-30786; 3.Part of the road allowance between Lots 28 and 29, Concession 5, being Parts 16 and 17, 40R-30786; 4.Part of Lot 29, Concession 5, being Parts 2, 3 and 4, 40R-30785; and 5.Part of Lot 30, Concession 5, being Parts 3 and 4, 40R-30790. It is recommended that Council enact the attached draft by-law establishing the above as public highway. Attached are four location maps and the draft by-law for the consideration of City Council at is meeting scheduled for December 14, 2020. PB:ca Attachments - 224 - North RoadWhitevale Road Highway 7 Highway 407 Sideline 26Altona RoadSideline 24Whitevale Green River 1:15,000 SCALE: © The Corporation of the City of Pickering Produced (in part) under license from: © Queens Printer, Ontario Ministry of Natural Resources. All rights reserved.;© Her Majesty the Queen in Right of Canada, Department of Natural Resources. All rights reserved.; © Teranet Enterprises Inc. and its suppliers all rights reserved.; © Municipal Property Assessment Corporation and its suppliers all rights reserved.; City Development Department Location MapFile:Applicant:Property Description: ROADDED 582 City of Pickering Parts 2, 3 & 4, 40R-30787, Part 2, 3, 16 & 17, 40R-30786, Parts 2, 3 & 4, 40R-30785, Parts 3 & 4, 40R-30790 THIS IS NOT A PLAN OF SURVEY. Date: Dec. 07, 2020ERoaded 582 - 225 - 1:3,000 SCALE: © The Corporation of the City of Pickering Produced (in part) under license from: © Queens Printer, Ontario Ministry of Natural Resources. All rights reserved.;© Her Majesty the Queen in Right of Canada, Department of Natural Resources. All rights reserved.; © Teranet Enterprises Inc. and its suppliers all rights reserved.; © Municipal Property Assessment Corporation and its suppliers all rights reserved.; City Development Department Location MapFile:Applicant:Property Description: ROADDED 582d City of Pickering Part of Lot 27, Con 5, being Parts 2, 3 and 4, 40R-30787 THIS IS NOT A PLAN OF SURVEY. Date: Dec. 07, 2020 Part 340R-30787 EPart 440R-30787E E Part 240R-30787 North RoadHighway 407 KEY MAP 1:25,000Scale: - 226 - Highway 407 1:3,000 SCALE: © The Corporation of the City of Pickering Produced (in part) under license from: © Queens Printer, Ontario Ministry of Natural Resources. All rights reserved.;© Her Majesty the Queen in Right of Canada, Department of Natural Resources. All rights reserved.; © Teranet Enterprises Inc. and its suppliers all rights reserved.; © Municipal Property Assessment Corporation and its suppliers all rights reserved.; City Development Department Location MapFile:Applicant:Property Description: ROADDED 582c City of Pickering Pt of Lt 28, Con 5, being Pts 2 & 3, 40R-30786 and Pt of the road THIS IS NOT A PLAN OF SURVEY. Date: Dec. 07, 2020 E Part 1640R-30786 Part 1740R-30786E Part 340R-30786E E Part 240R-30786 North RoadHighway 407 KEY MAP Scale:1:25,000 allowance btwn Lts 28 & 29, Con 5, being Prts 16 & 17, 40R-30786 - 227 - Highway 407 1:2,500 SCALE: © The Corporation of the City of Pickering Produced (in part) under license from: © Queens Printer, Ontario Ministry of Natural Resources. All rights reserved.;© Her Majesty the Queen in Right of Canada, Department of Natural Resources. All rights reserved.; © Teranet Enterprises Inc. and its suppliers all rights reserved.; © Municipal Property Assessment Corporation and its suppliers all rights reserved.; City Development Department Location MapFile:Applicant:Property Description: ROADDED 582b City of Pickering Part of Lot 29, Con 5, being Parts 2, 3 and 4, 40R-30785 THIS IS NOT A PLAN OF SURVEY. Date: Dec. 07, 2020 Part 340R-30785 E Part 240R-30785 EPart 440R-30785E North RoadHighway 407 KEY MAP Scale:1:25,000 - 228 - North Road1:2,500 SCALE: © The Corporation of the City of Pickering Produced (in part) under license from: © Queens Printer, Ontario Ministry of Natural Resources. All rights reserved.;© Her Majesty the Queen in Right of Canada, Department of Natural Resources. All rights reserved.; © Teranet Enterprises Inc. and its suppliers all rights reserved.; © Municipal Property Assessment Corporation and its suppliers all rights reserved.; City Development Department Location MapFile:Applicant:Property Description: ROADDED 582a City of Pickering Part of Lot 30, Con 5, being Parts 3 and 4, 40R-30790 THIS IS NOT A PLAN OF SURVEY. Date: Dec. 07, 2020 Part 440R-30790 E Part 340R-30790 ENorth RoadHighway 407 KEY MAP Scale:1:25,000 - 229 - The Corporation of the City of Pickering By-law No. 7803/20 Being a by-law to establish certain lands within the City of Pickering, Regional Municipality of Durham, as public highways. Whereas The Corporation of the City of Pickering is the owner or certain lands lying within Concession 5, set out herein and wishes to establish them as public highway Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1.Part of Lot 27, Concession 5, being Parts 2, 3 and 4, 40R-30787; Part of Lot 28, Concession 5, being Parts 2 and 3, 40R-30786; Part of the Road Allowance between Lots 28 and 29, Concession 5, being Parts 16 and 17, 40R-30786; Part of Lot 29, Concession 5, being Parts 2, 3 and 4, 40R-30785; and Part of Lot 30, Concession 5, being Parts 3 and 4, 40R-30790 are hereby established as public highway “Enterprise Gateway”. By-law passed this 14th day of December, 2020. ________________________________ David Ryan, Mayor ________________________________ Susan Cassel, City Clerk - 230 -