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REPORT TO COUNCIL
FROM: Ted Galinis DATE: July 30,2001
General Manager, Ajax Pickering Transit Authority
REPORT NUMBER: APTA 01-01
SUBJECT: Transit Merger Agreement
RECOMMENDATION:
That it is recommended that report APT 01-01 of the General Manager, Ajax Pickering Transit
Authority be received for information and that:
1. Council approve a By-Law as set out in Attachment No.1 attached hereto to authorize the
execution of a transit system Merger Agreement as set out in Attachment No. 2 attached
hereto between the Corporation of the Town of Ajax and the Corporation of the City of
Pickering;
2. the appropriate staff of the City of Pickering be given the authority to give effect thereto.
ORIGIN:
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General Manager, Ajax Pickering Transit Authority
AUTHORITY:
The Municipal Act, R.S.O. 1990, as amended.
Memorandum of Understanding, March 6, 2000
FINANCIAL IMPLICATIONS:
The initial asset contribution differential of $178,000 has been revisited and is currently in the
$248,000 range. This figure is subject to continuing discussion between the Municipalities and a
final evaluation on December 31,2001.
The net annual Operating Costs shall be determined in the Transit Authority's operating budget
and contributed to based on the percentage of each Municipality's tax assessment base to the tax
assessment base of both Municipalities as shown in the returned Assessment Roles for the
Municipalities. The tax assessment base shall be based on the returned Rolls, less exempt
assessment, of the preceding year. Capital costs will be shared equally, (Note: item 2.1 (a) fare
collection system - exception) and assets and liabilities of the two municipalities to be transferred
are set out in the attached Merger Agreement.
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1 ~ 6 Report to Council APT A 01-01
Date: July 30,2001
Subject: Transit Merger Agreement
Page 2
EXECUTIVE SUMMARY:
Not applicable
BACKGROUND:
On March 6, 2000, the Town of Ajax and the City of Pickering agreed to a Memorandum of
Understanding to facilitate the creation of the Ajax Pickering Transit Authority.
The Town of Ajax and City of Pickering are now prepared to formalize the terms and conditions
for the legal merger of Ajax Transit, owned and operated by the Town of Ajax; and Pickering
Transit, owned and operated by the City of Pickering.
The terms and conditions of this Merger Agreement will form the arrangement between the
parties on such issues as Boards and Committees, levels of authority, legal obligations/liabilities
on the part of the two municipalities, treatment of assets, equalization payments, municipal
support services, and labour relation matters.
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For the purpose of this Agreement, the merger will take place effective September 4,2001 with
the creation of a joint Board of Management. Legislation will be required to create a new entity
that can actually own real property. We have had preliminary discussions with the Ministry of
Municipal Affairs and with various political staff, and we are hopeful that the legislature will act
favourably on a request for legislation prior to December 31 st, 2001. The Agreement will remain
in effect until notice of termination is provided by either party in accordance with the terms and
conditions of this Agreement.
Following the effective date, the business and affairs of the Ajax Pickering Transit Authority
(APTA) shall be supervised by the Board of Management. Under authority provided by the
Board, the Ajax Pickering Transit Authority will commence the business of delivering a public
transportation system on behalf of the Town of Ajax and the City of Pickering. The formal
transfer of assets, insurance, financial services and a final inventory evaluation shall be completed
and effective January 1,2002.
At this time it has been agreed between the Chief Administrative Officers of the two
municipalities that Ajax will provide Human Resources and payroll services and that Pickering
will provide financial, accounting, budgeting, auditing, banking, internal control and corporate
legal services.
In order to establish the Ajax Pickering Transit Authority as a legal entity with authority to
operate a public transit system for Town of Ajax and the City of Pickering and to proceed with
required Legislation, it is necessary to formalize the terms and conditions of the Merger
Agreement.
ATTACHMENTS:
1. By-Law to execute the Merger Agreement
2. Merger Agreement
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Report to Council APTA 01-01
137
Date: July 30,2001
Subject: Transit Merger Agreement
Page 3
Prepared / Approved / Endorsed By:
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Attachments
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Copy: M. Brenner, Councillor
TJ. Quinn, Chief Administrative Officer
G.A. Paterson, Director, Corporate Services & Treasurer
J. Reble, Solicitor
B. Gajadharsingh, Division Head, Human Resources
T. Melymuk, Division Head, Corporate Promotions & Policy Division
N. Killens, Manager, Transit Services
Recommended for the consideration of Pickering
City Council
m
uinn, Chief Administrative Officer
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THE CORPORATION OF THE CITY OF PICKERING
BY-LAW NUMBER 5873/01
Being a By-law to authorize the execution of a Transit System Merger
Agreement between the Corporation of the Town of Ajax and the
Corporation of the City of Pickering.
WHEREAS Ajax and Pickering have agreed to a Memorandum of Understanding March 6,2000
that will facilitate the creation of the Ajax Pickering Transit Authority;
AND WHEREAS Ajax and Pickering wish to enter into a Transit System Merger Agreement
August 8, 2001 to remain in effect until such time as notice of termination is provided by either
party in accordance with the terms and conditions of this Agreement;
NOW THEREFORE, the Corporation of the City of Pickering HEREBY ENACTS AS
FOLLOWS:
The Mayor and Clerk are hereby authorized to execute the Merger Agreement between the
Corporation of the Town of Ajax and the Corporation of the City of Pickering.
By-law read a fIrst, second and third time and
fInally passed this 7th day of August, 2001.
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Cl"k(DePutYI~
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C. ~nn~ Green.tree, SuPervisor,
Legislative ServIces and Deputy Clerk
City of Pickering
THIS PHOTOCOPY CONFORMS
TO THE ORIGINAL DOCUMENT
WHICH HAS NOT BEEN ALTERED
IN ANY WAY.