HomeMy WebLinkAboutCAO 03-05REPORT TO
COUNCIL
Report Number: CAO 03-05
Date: January 13, 2005
From:
Everett Buntsma
(Acting) Chief Administrative Officer
Subject:
Region of Durham Business Case Analysis
- for the Potential Transfer of Lower-Tier
- Municipal Transit Services
Region of Durham By-law #85-2004
- File: D-7000
Recommendation:
la)
That the City of Pickering not consent to the Region of Durham Transit By-law
#85-2004 regarding the transfer of Lower-Tier Municipal Transit Services to the
Region; and
2a)
That, notwithstanding the above, the City of Pickering supports the
amalgamation of transit across the Region as a Regional Transit Service and
approves continued staff negotiations to resolve outstanding issues, with a new
report to Regional Council resolving these issues by June 30, 2005.
OR
lb)
That the City of Pickering consent to the Region of Durham Transit By-law #85-
2004 regarding the transfer of Lower-Tier Municipal Transit Services to the
Region; and
2b)
That City staff continue to negotiate with Region staff, a reasonable solution, for
the Region's use only of a portion of the City's Operations Centre for bus
storage.
Executive Summary: The Region of Durham has prepared a business case which
has determined that there are significant benefits (non monetary) should the Region
amalgamate lower-tier transit services into one unified service.
The Region subsequently passed By-law #85-2004 which now requires a triple majority
approval.
City Council adoption of Recommendation lb) and 2b) above will confirm the City's
consent to amalgamate lower-tier transit services into a Regional service.
Report CAO 03-05
Subject: Region of Durham Business Case Analysis
For Potential Transfer of Lower-Tier Transit
Date: January 13, 2005
Page 2
Council's adoption of Recommendation la) and 2a) will reflect that although the City
supports the amalgamation of transit across the Region it cannot consent to By-law
#85-2004 until further study and negotiations between the City and Region staff to
resolve specific City concerns.
Financial Implications: Unknown, but will increase tax burden to the City taxpayers
to provide a more efficient and integrated Regional Transit Network.
Background:
Not Applicable
Attachments:
1. Regional Clerk's Letter
2. Regional By-law#85-2004
3. Regional Chair's Letter
Prepared By:
(Acting) Chief Administrative Officer
EB:mld
Attachments
Copy: Chief Administrative Officer
Director, Corporate Services & Treasurer
Recommended for the consideration of
Picker~
Thomaf-s-~~ief Administrative Officer
CORP0227-07/01
The Regional.
Municipality
of Durham
Clerk's Department
605 ROSSI_AND RD. E.
PO BOX 623
WHITBY ON L1N 6A3
CANADA
905-668-7711
1-800-372-1102
Fax: 905-668~9963
Email:
clerks@region.durham.on.ca
www. region.durham.on.ca
Pat M. Madill, A.M.C.T., CMM I
Regional Clerk
ROUTING
C-~3 U~'~C u. LC'R;: ~'~
DIR./PLAtHO~S
"Service Excellence
for our Communities"
Mr. D.G. McKay
Clerk
Town of Whitby
575 Rossland Road East
Whitby ON L1N2M8
#/._L__TOr~:ruKr~..~ ./ - '~ , , -'~ ....
. / TH LETTER HAS BEEN FORWARDED
~¢. ~. ~200C~ ' TO THE EIGHT AREA CLERKs
;RK'~ ~E?ARTMENT
OWN OF WHITBy
RE: REGION OF DURHAM TRANSIT BY-LAW
OUR FILE: T05-01
Mr. McKay, at a meeting held on December 15, 2004, Regional
Council passed By-law #85-2004, being a by-law to transfer all of the
lower-tier power relating to public transportation systems, other than
highways, to the Region from all of its lower-tier municipalities.
In accordance with the Municipal Act the by-law shall not come into
force unless:
a)
a majority ol all votes on the council of the upper-tier
municipality are cast in its favour;
~)
after the by-Jaw is passed, a majority of the councils of all its
lower-tier municipalities have passed .resolutions giving their
consent to the by-law; and
the total number of electors in the lower-tier municipalities that
pass resolutions under clause (b) form a majority of all the
electors in the. upper-t.ier municipality.
.ccordingly, could you please place this before your Council at its next
neeting in order to ascertain their position as it relates to part b)
__~bove.
· A response on or before January 18, 2005 would be appreciated in
order that Regional Council may consider the issue at its January 19,
2005 meeting.
®
100% Post Consumer
ATTACHMENT # J._L__TO REPORT #
37
Attached for your reference, is a copy of By-law #85-2004, as well as a
"copy of the recommendations passed by Council at their meeting held
.... On December 15, 2004.,
P.M. Madill, A.M.C.T., CMM I
Regional Clerk
PMM/cg
C:
D. Allingham, Totten Sims Hubicki
R.J. Clapp, Commissioner of Finance
C. Curtis, Commissioner of Works
G. Johns, Commissioner of Human Resources
B.J. Roy, Regional Solicitor
A.L. Georgieff, Commissioner of Planning
G.H. Cubitt, Chief Administrative Officer
R. Anderson, Regional Chair
ATTACHMENT #~/,.~'TO REFO?,,T #~ ~) _,2. ~_~"
RECOMMENDATIONS APPROVED BY DURHAM REGIONAL
COUNCIL ON DECEMBER 15, 2004 REGARDING THE POTENTIAL
TRANSFER OF LOWER-TIER MUNICIPAL TRANSIT SERVICES TO
THE REGIONAL MUNICIPALITY OF DURHAM:
a)
THAT Report #2004-RTIC-7 of the Commissioners of
Planning, Works and Finance, titled "Business Case
Analysis for the Potential Transfer of Lower-Tier Municipal
Transit Services to the Regional Municipality of Durham" by
Totten Sims Hubicki (TSH) be received for information;
b)
THAT Report #2004-RTIC-8 of the Commissioners of
Planning, Works and Finance, summarizing the responses
received to date from five of the eight area municipalities,
namely, Ajax, Brock, Pickering, Scugog, and Uxbridge be
received for information;
c)
.THAT the following recommendations contained in the TSH
report be endorsed, subject to the Region of Durham Transit
By-law receiving triple majority approval:
The transfer of the transit responsibilities of the City of
Pickering, Town of Ajax, Town of Whitby, City of
Oshawa, Municipality of Clarington and Handi Transit
Inc. to the Region of Durham;
Regional staff be directed to present to Committee
and Council for their approval an appropriate net-cost
allocation formula for the levy of Regional transit
taxes at a local municipal level;
Apply the "Cumming Principle" to any transit-related
asset transfers, and all transfer-eligible assets of
Handi-Transit Inc.;
Adopt the following timetable for Regional Transit
implementation:
Transition Period - Date of Transit By-Law approval to
effective date of service transfer (January 1, 2006):
Resolution of critical HR and union issues
including union certification;
Staffing of the new Regional Transit
Department;
Development and implementation of
operational and financial controls;
Obtain Public Vehicle Operating License for
the Region of Durham to operate transit; and
Asset transfer.
Completion of Transfer - complete transfer of service
and initiate Regional transit service on January 1,
2006;
Inform the Provincial and Federal governments of the
creation of a Durham Regional Transit system and
pursue the acquisition of additional Provincial/Federal
government funding;
Extend the mandate of Regional Transit
Implementation Committee (RTIC) to oversee the
transfer of transit services;
The Regional Working Committee be the Regional
Transit Implementation Committee and be active
through 2005 to oversee all actions necessary to
complete the transfer, including but not limited to,
action items contained in Tables 11.1 to 11.6 of the
TSH Report, and that the existing area municipal
Transit Advisory Committees be utilized in an
advisory role to RTIC during transition up to and
including the year 2006; and
In the year 2005 the RTIC Committee will decide
which Committee will govern the Regional Transit
System for the year 2006;
d)
THAT the following additional recommendations be
approved, subject to the Region of Durham Transit By-law
receiving triple majority approval:
The net cost allocation formula for the levy of
Regional transit taxes at a local municipal level be
assessed on the basis of 75% revenue hours of
service and 25% weighted assessment and be
phased into a 100% weighted assessment basis over
the next seven years; and
e)
f)
ii)
The 2005 Regional Transit Budget for area municipal
transit related purposes be shared on the basis of a
75% share to the area municipalities with a 25%
share to be retained by the Region with the Regional
shortfall related to 2005 Regional Transit Transition
costs to be financed from a source determined by the
Commissioner of Finance and further that the Region
of Durham apply to the Province of Ontario for
Regional transit transition funding;
THAT the following revisions to the proposed Region of
Durham Transit By-law, as set out in Attachment #3 to
Report #2004-RTIC-8 of the Commissioners of Planning,
Works and Finance, be approved:
ii)
Clause 2(b) be amended by adding the words "at a
minimum" following the words "The Region shall"; and
The following clause be inserted as clause 2(p) under
the heading "Surplus Assets":
"Any real property acquired by the Region from a
lower-tier municipality pursuant to clause 2(d) of this
by-law and deemed surplus for transit purposes shall
be returned to the lower-tier municipality from which it
was transferred at no cost.";
THAT the Region of Durham Transit By-Law [Attachment #3
to Report #2004-RTIC-8 as modified by recommendation e)
above] providing for the transfer of the lower-tier power
relating to public transportation systems, other than
highways (transit) to the Region, and encompassing the
following terms and conditions for the transfer, be approved:
As of the effective date, the Region shall operate,
maintain and regulate the use of a Public
Transportation System for both conventional and
specialized services;
The Region shall at a minimum begin its service
based on the existing overall revenue hours of
service in effect as of May 1, 2004, with the addition
of the RosslandFFaunton "beltline" service jointly
pl,~nned by the City of Oshawa and the Town of
Whitby, the planned service realignments in Oshawa
and Whitby for implementation in 2004/2005 and
the Iower-tie~ municipalities requesting co~isendng
resolutions on or before January 18, 2005; and
h)
THAT a copy of Report #2004-RTIC-8 of the Commissioners
of Planning, Works and Finance be forwarded to all area
municipalities in Durham Region.
The Regional Municipality of Durham
To: The Regional Transit Implementation Committee
From: Commissioners of Planning, Finance and Works
Report No.: 2004-RTIC-8
Date: December g, 2004
SUBJECT:
Area Municipal Comments on Report No. 2004-RTIC-7 (Subject: Business Case
Analysis for the Potential Transfer of Lower-Tier Municipal .Transit Services to the
Regional Municipality of Durham)
RECOMMENDATIONS:
THAT the Regional Transit Implementation Committee (RTIO) recommend to Regional
Council that Repod-2004-RTIC-8, summarizing the responses received to date from five
of the eight area municipalities, namely, Ajax, Brock, Pickering, Scugog, and Uxbridge,
and the suggested revisions to the proposed Region of Durham Transit By-Law, be
considered along with the recommendations of Report 2004-RTIC-7.
REPORT:
BACKGROUND AND PURPOSE
1.1
On November 4, 2004, the Regional Transit Implementation Committee
(RTIC) considered Commissioners' Report 2004-RTIC-7. This repod
summarized the findings of the Business Case Analysis by Totten Sims
Hubicki Limited (TSH), provided staff comments on their findings, and
recommended that the Business Case Analysis be endorsed and that a by-
law be enacted to transfer the responsibiliiy for transit from the lower tier
municipalities to the Region, subject to a number of terms and conditions.
Based on deliberations at the meeting, RTIC endorsed the results of the
Business Case Analysis and a supporting by-law, for approval by the
Committee of the Whole.
1.2
At a meeting held on November 10, 2004, the Committee of the Whole
considered the recommendation of RTIO and adopted the following
resolution:
Report No.:
2004-RTIC-8
Page No. 4
3.1.3
3.1.4
3.2
3.2.1
3.2.2
3.2.3
3.2.4'
The intent of clause (2b) in the by. law is to ensure that the Region has a
degree of certainty with the service it will assume. The Regional Solicitor has
advised that the clause is intended not to bind the Region to the existing level
of service in perpetuity. To clarify its intent, it is recommended that the
phrase "shall maintain" in clause (2b) of the by-law be replaced with
"shall begin its service based on".
With respect to conventional transit service in the nodh, the preliminary
service plans developed as part of the Consultant's Business Case Analysis
recommends the deployment of one dial-a-ride bus (starting 2006) to service
the three northern municipalities. The detailed service planning exercise
proposed for the transition year (2005), and annual service planning
thereafter, would determine the priorities for service enhancements across
the entire Region on an annual basis. Accordingly, it is recommended that
the Townships' requests be considered during the detailed service
planning exercise in 2005..
Transfer of Assets
Clause (2d) of the by-law recommends the adoption of the Cumming Principle
- i.e. all local transit assets must be transferred to the Region at no cost as
taxpayers should not be expected to pay for the assets twice. This includes all
assets, but not be limited to: vehicles and equipment; lands and premises
including garages, terminals and shelters; and other transit amenities.
In commenting on this matter, the Town of Ajax has requested that it retain
the ownership of its transit facility on Westney Road (near Ajax GO sta. t_i_o..n),
and that the Region lease the facility for a r~ominal rent (net to Region paying
all expenses).
On the same matter, the City of Pickering has requested that its Operations
Centre (on Brock Road) not be considered as pad of the transfer of assets, as
the facility is currently being rented to Ajax-Picketing Transit AUthority (APTA)
for the use of storage and office space.
TSH has determined that all of the existing assets would continue to be
required after the transfer to operate transit at the Regional level. Therefore,
the ownership of all transil related assets must be transferred to the Region.
Report No.:
2004-RTIC-8
Page No. 5
3.2.5
3.2.6
3.2.7
3.3
3.3.1
Accordingly, it is recommended that the Cumming principle be followed
for all assets related to transit, subject to confirmation of inventories,
appropriate asset valuations and environmental site assessments, as
per clause (2e) in the by-law.
Commenting on the asset transfer, the three Townships have requested that
the by-law be reviewed to ensure that assets as at May 1,2004 cannot be
sold, mortgaged or otherwise encumbered, and that them is no incurrence of
any significant financial obligations (contracts, borrowing, debenturing, etc.)
and depletion of cash, reserves and other assets before the Effective Date of
Transfer.
Clause (2m) of the by-law specifies that:
"During the period of time between the date that this by-law has received
the necessary triple majority approval and the Effective Date (the
"Transition Period"), any new or renewed transit-related contract, lease or
contractual obligation that requires a significant financial commitment
extending beyond the Effective Date shall require the approval of the
Region".
According to the wording of the by-law, during the transition year (i.e. 2005),
any act by the area municipalities that would require a "significant" financial
commitment beyond the Effective Date would have to be approved by
Regional Council. The Regional Solicitor has advised that this wording would
address the concerns expressed by the Townships, and has recommended
that upon receiving triple majority on the by-law, the definition of
"significant financial commitment" be ~larified to area municipalities
through appropriate guidelines.
Provincial Gas Tax Funding
Clause (2i) in the by-law states that after the Effective Date of Transfer, all
Provincial and Federal transit-related funding received by the lower-tier
municipalities shall be transferred to the Region, including but not limited to
funds received from such programs as the new Provincial Gas Tax Funding
Program.
10
Report No.:
2004-RTIC-8
Page No. 6
3.3.2
3.3.3
3.4
3.4.1
3.4.2
3.4.3
The three Townships have generally made similar comments on this matter.
They have requested that the Region assume responsibility for ensuring that
the provincial conditions of receiving the gas tax rebate for 2006 are satisfied
(including the undertaking of an asset management plan) and that the rebate
is not lost. They have also requested that the Region earmark their respective
2005 gas tax funds for enhancement of specialized transit services in their
respective Townships, in 2006 (refer to section 3.7.2 for response to requests
for service enhancements).
Should the responsibility for transit services be transferred, the Region will be
encumbered by the same conditions of the Provincial Gas Tax Funding
Program beginning in 2006, as are local municipalities for 2004 and 2005.
Therefore, it is recommended that the Region assume the responsibility
to ensure compliance with all provincial conditions for the Program.
2005 Regional Transit Funding
Report 2004-RTIC-7 recommended that the 2005 Regional Transit funding
matter be referred to the 2005 Regional business planning and budget
deliberations in order to determine the funding for transition and related costs
associated with the transfer.
The Town of Ajax and the three Townships have requested that the 2005
Regional Transit fund be divided between the area municipalities and the
Region on a ratio between 50/50 and 60/40 (in favour of area municipalities),
subject to negotiations and finalization by Treasurers. The City of Pickering
has requested that the Region distribute this fund to area municipalities for
the 2005 operating year, at the same level'as 2004.
The 2005 five-year economic and financial forecasts and related budget
guidelines, as approved, on December 1,2004, indicated that $4 million was
required for anticipated 2005 transition costs, it is therefore recommended
that the 2005 Regional Transit Funding matter be dealt with during the
2005 Regional business planning and budget deliberations.
11
Report No.:
2004o~TI0-8 Pag~ ~o. 7 ,
3.5.1
3.5.2
3.6
3.6.1
3.6.2
3.6.3
Governance for Regional Transit
The Business Case Analysis Repod by TSH recommended that the new
Regional Transit Department report to a Joint Planning and Works
Committee. The Town of Ajax has requested that this Depadment report to a
Committee of Regional Councillors reflecting ridership with the northern
municipalities (Brock, Uxbridge and Scugog) having one representative, Ajax,
Pickering, Whitby and Clarington each having one representative, and
Oshawa having two representatives.
The reporting mechanism recommended in the Business Case Analysis (i.e.
the transit department reporting to a Joint Planning and Works Committee)
builds on existing committee structures and would ensure that all area
municipalities are represented. As such, the Joint Planning and Works
Committee model is preferred in the short term. Once the transfer is
completed, it may be useful to review the reporting mechanism and
assess if a stand-alone transit committee would be beneficial.
Allocation of Regional Transit Costs
Report 2004-RTIC-7 recommended that staff be directed to present to
Committee and Council for their approval an appropriate net-cost allocation
formula for the levy of Regional transit taxes at a local municipal level.
The Town of Ajax has requested that the allocation of Regional Transit costs
be based on 50/50 ridership/assessment, phased in over 5 years to 100%
equalized assessment. The Town has fudher requested that the Region
utilize the General Levy Rate Stabilization Reserve Fund in 2006 to mitigate
the tax rate increase resulting from the transfer of transit services.
The three Townships have requested that Regional Transit costs be allocated
on a 75/25 service/assessment basis across the eight municipalities. The
Township of Scugog has further requested that this allocation formula be
maintained for the first five years, with subsequent increases in non-
assessment allocation phased in over a fudher 5 year period, based on
average 5 year historical increases in ridership levels within each
· municipality.
12
Report No.:
2004-RTIC-8
3.6.4
3.6.5
3.7
3.7.1
3.7.2
3.8
3.8.1
The City of Pickering has requested that the Regional Transit costs be
allocated on a 100% equalized assessment basis, as is the case for all other
Regional services.
Regional staff has provided and will continue to provide multiple net cost
allocation methods and the associated estimated property tax impacts,
including ones that recognize different levels of service, for Regional Council
review and approval. It would appear that the cost allocation would not be
based on a 100% equalized assessment, at least for the first 5 years.
Accordingly, it is recommended that an acceptable formula be developed
and presented to Regional Council prior to July 1, 2005.
Service Enhancements
The three Townships have made requests for specific service enhancements,
as detailed in Attachment 2. As noted in Report 2004-RTIC-7, the Business
Case Analysis recommends undertaking of a detailed service planning
exercise during the transition year (i.e. 2005). It is recommended that the
detailed service planning take into consideration the enhancements
identified by the Townships.
With respect to dedicating the gas tax revenues received by the three
Townships in 2005 towards the enhancement of specialized transit service in
their respective municipalities in 2006, as noted earlier, it is impodant that
service enhancements be prioritized through the detailed service planning
exercise proposed for the transition year (2005). The full cost of providing
enhanced service in the north must be considered as part of the service
planning exercise so that the full implications are known. Accordingly, it is
recommended that the Townships' requests be considered as part of
the service planning exercise in 2005.
Unfunded Liabilities
In addition to the above, the City of Pickering has requested that the Region
provide a further report on unfunded liabilities for local municipalities for
review and comment. As noted in Report 2004-RTIC-7, further examination
of unfunded liabilities has been planned as part of the transition work in
2005.
Report No.:
2004-RTIC-8
Page No. 9
RECOMMENDATIONS
Based on a review of area municipal comments, it is recommended that the
revised by-law in Attachment 3 be used as the basis to further the triple
majority approval process.
A. L. Georgi~f,C'~.C.l.P., R.P.P.
Commissioner of Planning
R.J. Clapp, CA
Commissioner of Finance
~P. Eng., MBA,
Commissioner of Works
RECOMMENDED FOR PRESENTATION TO COMMITTEE
Garry H. Cubitt, M.S.W.
Chief Administrative Officer
Attachments:
1. · Area Municipal Resolutions
2. Summary of Area Municipal Comments
3. Revised Region of Durham Transit By-Law
14
BY-LAW NUMBER 85-2004
OF
THE REGIONAL MUNICIPALITY OF DURHAM
A by-law to transfer all of the lower-tier power relating
to public transportation systems, other than highways,
to the Region from all of its lower-tier municipalities.
WHEREAS Section 189 of the Municipal Act, 2001, S.O. 2001, c. 25 (the "Act")
provides that an upper-tier municipality may pass a by-law to provide for the transfer of
all or part of a lower-tier power to the upper-tier municipality from one or more of its
lower-tier municipalities which are specified in the by-law;
AND WHEREAS public transportation systems, other than highways, are defined
in Section 188 of the Act as a lower-tier power that may be transferred to an upper-tier
municipality;
AND WHEREAS the The Regional Municipality of Durham (the "Region") desires
to assume all of the power relating to public transportations systems other than
highways ("Public Transportation Systems") from all of its lower-tier municipalities;
NOW, THEREFORE, BE IT ENACTED AND IT IS HEREBY ENACTED as a by-
law of The Regional Municipality of Durham through the Council thereof as follows:
All of the power of lower-tier municipalities with respect to Public Transportation
Systems shall be transferred to the Region effective January 1,2006 (the
"Effective Date").
On the Effective Date, all rights and obligations and all assets and liabilities of
the lower-tier municipalities pertaining to or used for Public Transportation
Systems including all real and personal property and all interests and obligations
in any agreement, shall be transferred to the Region subject to the following
terms and conditions:
Operations
(a)
As of the Effective Date, the Region shall operate, maintain and regulate
the use of a Public Transpodation System for both conventional and
specialized services.
(b)
The Region shall at a minimum begin its service based on the existing
overall revenue hours of service in effect as of May 1,2004, with the
addition of the Rossland/Taunton elthne servIce jointly planned by the
City of Oshawa and the Town of Whitby, the planned service realignments
in Oshawa and Whitby for implementation in 2004/2005 and enhanced
specialized transit service in Oshawa as a result of a vehicle acquired in
2004.
(c)
After the Effective Date, the Region may enter into agreements with any
adjoining municipality or the Province for the provision of public
transportation services.
Asset Transfer
(d) All physical assets used fo~ public transportation systems shall be
transferred to th6'R~egion-¢~ithout compensation as of the Effective Date.
Assets shall include, but not be limited to,
(i) vehicles and equipment;
(ii) lands and premises including garages, terminals and shelters; and
(iii) other transit amenities.
(e)
(r)
(g)
(h)
The transfer of all transit-related assets shall be subject to confirmation of
inventories, appropriate asset valuations and environmental site
assessments. Such inventories shall include all transit-related assets of
the lower-tier municipalities and transit agencies as at the Effective Date.
Discretionary transit-related funds including reserves and reserve funds
existing on the Effective Date shall be transferred to the Region.
All transit-related development charge and other non-discretionary reserve
funds shall be transferred to the Region.
Lower-tier municipalities shall continue to collect transit development
charges'where applicable until their by-laws expire or are repealed,
including periods beyond the Effective Date. All such development
charges shall be transferred to the Region. The transit-related provisions
of the development charges by-laws shall not be changed after this by-law
has received the necessary triple majority approval without the approval of
the Region.
(i)
After the Effective Date, all Provincial and Federal transit-related funding
received by the lower-tier municipalities shall be transferred to the Region,
including but not limited to funds received from such programs as the
Ontario Transit Vehicle Program (formerly the Transit Renewal Program),
the new Provincial Gas Tax Funding program for public transit and
potential federal programs such as a federal gas tax.
Liabilities
O)
(k)
As of the Effective Date, the lower-tier municipalities shall be relieved of
all liabilities in relation to any assets transferred to the Region.
The amount and future payments of any un[unded liabilities existing at the
Effective Date shall be determined through negotiations between the
Region and the lower-tier municipalities.
Personnel
(1) All transit employees with permanent full time and pad time positions,
both exempt and union, that are exclusively employed in transit by the
lower-tier municipalities, transit operators and Handi Transit Inc. as of the
date that this by-law comes into force shall become employees of the
Region as of the Effective Date.
Transition Period
(m)
During the period of time between the date that this by-law has received
the necessary triple majority approval and the Effective Date (the
"Transition Period"), any new or renewed transit-related contract, lease or
contractual obligation that requires a significant financial commitment
extending beyond the Effective Date shail require the approval of the
Region.
(n)
(o)
Handi Transit Inc. shall be dissolved prior to the Effective Date in order to
facilitate the transfer of transit-related assets to the Region.
During the Transition Period, the Region and the lower-tier municipalities
shall negotiate and enter into agreements for the transfer of all assets,
liabilities and personnel on terms that are consistent with this by-law. Any
matters not agreed to within three (3) months of the Effective Date may, at
the request of the Region or a lower-tier municipality, be determined by
arbitration under the provisions of the Ontario Arbitrations Act:
Surplus Assets
(P)
Any reap property acquired by the Region from a Power-tier municipality
pursuant to clause 2(d) of this by-law and deemed surplus for transit
purposes shall be returned to the lower-tier municipality from which it was
transferred at no cost.
BY-LAW read a first time this 15th day of December, 2004.
BY-LAW read a second time this 15th day of December, 2004.
BY-LAW read a third time and finally passed this 15th day of December, 2004.
Roger Anderson, Regional Chair P.M. Madill, Regional Clerk
The Regional
MuniCipality
of Durham
January 6, 2005 FAXED ~ MAILED
Mayor David Ryan
City of Pickering
I The Esplanade
Pickering, ON
L1V 6K7
Dear Mayor Ryan:
Re: Regional Transit
53
Office of the Regional Chair
605 ROSSLAND ROAD E.
PO BOX 623
WHITBY ON LIN 6A3
CANADA
905-668-7711
1-800-372-1102
Fax: 905-668-1567
Emaih roger, anderson@
region.durham.on.ca
www. region.durham .on .ca
Roger M. Anderson
Regional Chair
"Service Excellence
for.our,Communities"
I am writing to confirm the intention of Regional Transit By-Law No. 85-2004 with
specific reference to the City of Pickering Operations Centre located at 2570
Tillings Road.
First, the by-law is only intended to apply to assets or those parts of joint-use
assets that are used for transit-related purposes. Therefore, in the case of the
Operations Centre, the intention is that only that portion of the facility that is used
to park/store buses (approximately 30% of the overall'facility) would continue to
be used by the Region for transit purposes. Second, it is intended that the
specific terms of the transfer of any joint-use asset would be negotiated with each
lower-tier municipality (see clause 2(o) of the by-law) after the by-law has
received the necessary triple majority approval. This reflects the fact that it was
simply not possible to inventory and evaluate all joint-use assets (like the
Operations Centre) in every lower-tier municipality and determine now such
assets or parts of such assets could be transferred without extensive and detailed
discussions with all affected parties. Third, the by-law was structured to ensure
that all transit-related assets and liabilities of all eight lower-tier municipalities
would be' dealt with in an equitable and consistent manner.
Further, the terms that we discussed for the use of the tranSit portion of the
Operations Centre (i.e. $2.00 per year for a minimum of 10 years, with the Region
assuming its share of the occupancy costs), seem reasonable. Assuming that the
Transit By-law receives a triple majority approval, Regional staff would finalize
these terms with your staff, together with any other related matters, as per clause
2(o) of the by-law. At that point, Regional Council would be in a position to
consider that such terms be incorporated into the Region's agreement with the
City.
I hope this helps clarify matters.
Yours truly,
Regional Chair
C: Messrs. G. Cubitt; A. Georgieff
100% POst Consumer