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HomeMy WebLinkAboutNovember 12, 2007 Executive Committee Meeting Agenda Monday, Novem ber 12, 2007 7:30 pm Council Chambers Chair: Councillor Pickles 7:15 PM Main Committee Room (I) CONFIDENTIAL MATTERS PAGES Director, Corporate Services & Treasurer, Confidential Report CS 47-07 OPG and Hvdro One Assessment Appeals Under Separate Cover 7:30 PM (II) DELEGATIONS 1. Glen Timney Simple Alternative Funeral Centres Re: Brock Road Widening and Traffic Controls 1057 Brock Road The Simple Alternative Funeral Centre 1-10 (III) MATTERS FOR CONSIDERATION . 1. Director, Corporate Services & Treasurer, Report CS 51-07 2007 Year End Audit 11-49 RECOMMENDATION 1. That the Audit Plan as submitted by Deloitte & Touche LLP, included as Attachment 1 to this report be received for information; and, 2. That the Chief Administrative Officer and the Director, Corporate Services & Treasurer be authorized to sign the Auditor's Engagement Letter on behalf of the City. 2. Director, Corporate Services & Treasurer, Report CS 50-07 Response to Executive Committee Requests for Information With Respect to the 2006 Audit 50-59 RECOMMENDATION That Report CS 50-07 of the Director, Corporate Services & Treasurer regarding the Response to Executive Committee Requests for Information with Respect to the 2006 Audit be received for information. - E.xecutive Committee Meeting Agenda Monday, November 12,2007 7:30 pm Council Chambers Chair: Councillor Pickles 3. Director, Corporate Services & Treasurer, Report CS 52-07 Summary of Internal Audit Results to Date 60-63 RECOMMENDATION That Report CS 52-07 of the Director, Corporate Services & Treasurer regarding summary of internal audit results to date be received for information. 4. Director, Corporate Services & Treasurer, Report CS 53-07 2008 - 2010 Internal Audit Work Plan 64-72 RECOMMENDATION That Report CS 53-07 from the Director, Corporate Services & Treasurer regarding the 2008 - 2010 Internal Audit Work Plan be approved. 5. Director, Corporate Services & Treasurer, Report CS 30-07 Council Compensation Policy 73-1 05 RECOMMENDATION 1. That Report CS 30-07 of the Director, Corporate Services & Treasurer be received; 2. That the Council Compensation Policy, included as Attachment #1 to this report be approved and By-law No. 5992/02, as amended, be repealed; and, 3. That the appropriate officials of the City of Pickering be authorized to take the necessary actions to give effect thereto. 6. Director, Corporate Services & Treasurer, Report CS 46-07 2008 Standinq Committee and Council Meetinq Schedule 1 06-1 08 RECOMMENDATION 1. That Report CS 46-07 of the Director, Corporate Services & Treasurer be received; 2. That the 2008 Standing Committee and Council Meeting Schedule included as Attachment 1 to this report be approved; and Executive Committee Meeting Agenda Monday, November 12,2007 7:30 pm Council Chambers Chair: Councillor Pickles 3. That the City Clerk be given authority to give effect thereto. 7. Director, Corporate Services & Treasurer, Report CS 49-07 Municipal Statute Law Amendment Act, 2006 (Bill 130) - Closed Meetinq I nvestiqator 109-113 RECOMMENDATION 1. That Report CS 49-07, of the Director, Corporate Services & Treasurer be received; 2. That Council authorize staff to advise the Ministry of Municipal Affairs & Housing that they will not be appointing a meetings investigator in accordance with Section 239.2 (1) of the Municipal Act, 2001 at this time, and will rely on the Provincial Ombudsman; 3. That staff monitor the Closed Meetings Investigator service delivery experiences of other municipalities over the next year and report back to Council by no later than December 1, 2008; and 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions to give effect thereto. 8. Director, Corporate Services & Treasurer, Report CS 54-07 -Grant Morris Associates Ltd on Behalf of Christopher Trzcinski -1630 Bayly Street. Pickerinq 114-121 RECOMMENDATION 1. That Report CS 54-07 of the Director, Corporate Services & Treasurer be received for information; and 2. That the City Clerk be directed to forward a copy of Report CS 54-07 of the Director, Corporate Services & Treasurer to Grant Morris Associates Limited. 9. Director, Operations & Emergency Services, Report OES 41-07 Tender No. T-1 0-2007 - Playqround Construction 122-138 Executive Committee Meeting Agenda Monday, November 12, 2007 7:30 pm Council Chambers Chair: Councillor Pickles RECOMMENDATION 1. That Report OES 41-0'7 of the Director, Operations & Emergency Services regarding Sunbird Trail Park Development and Whites Road Bus Loop Plantings and playground construction, playground equipment, and safety surface material be recE~ived; 2. That Tender No. T-10..2007 as submitted by Colpac Construction Inc. for playground construction in the amount of $38,099.00 (excluding GST) be accepted; and 3. That the total estimated projE~ct cost of $400,000 (excluding GST), be accepted; and 4. That Council authorize the Director, Corporate Services & Treasurer to finance the estimated total project cost in the amount of $400,000 as follows: a) the sum of $216,315 be funded from the Development Charges Reserve Fund - Parks; b) the sum of $36,685 be funded from the City's Share - Development Charges (DC) Reserve; c) the sum of $147,000 be funded from Parkland Reserve Fund d) the Treasurer is authorizE~d to take any actions necessary in order to effect the foregoing; and 5. Further, that the appropriate officials of the City of Pickering be authorized to take the necessary actions to give effect thereto. 10. Director, Operations & Emergency Services, Report OES 29-07 Pesticide Use By-law 139-153 RECOMMENDATION 1 . That Report OES 29-07 of the Director, Operations & Emergency Services be received; 2. That City staff organize, advertise and facilitate a public consultation process as set out in this report for the draft "Pesticide Use By-law"; Executive Committee Meeting Agenda Monday, Novem ber 12, 2007 7:30 pm Council Chambers Chair: Councillor Pickles 3. That City staff expand the social marketing & public education program pertaining to the draft "Pesticide Use By-law"; and 4. That local retailers be requested to offer more alternatives to pesticides that are clearly and prominently displayed within the store. (IV) OTHER BUSINESS (V) ADJOURNMENT ~~- ~ L ~ n The Simple Alternative Funeral Centres 01 October 19th, 2007 Suite 500 65 Overll'a Boulevard Toronto, Ontario VI4H IPI T elepl10ne 416-696-7866 Fax <I] 6-696-0227 The Corporation of the City of Pickering One The Esplanade Pickering, Ontario L 1V 6K7 Attention: Councillor Bill McLean Dear Councillor McLean: Re: Brock Road Widening and Traffic Controls 1057 Brock Road The Simple Alternative Funeral Centre Thrt'e locations to serve you' I am writing to you to express my ongoing concern with respect to the Region's intentions to proceed with road works which will substantially and significantly affect The Simple Alternative business operation located on the east side of Brock Road, south of Highway 401. 275 Leslllill Road North York, Ontario M3E 2VI Through a phone conversation with Susan Siopis' of Durham Region Transportation, I have learned that this issue was discussed at the September Works Committee. I want to make it very clear that we did avail ourselves of every opportunity to object to this proposal starting as soon as we became aware of it in 2003. 1535 South Gateway Road Mississauga, Ontario L4W 5.)1 lO57 Brock [~oad Pickering. Ontario L1 W 3T7 The Region has alluded to that fact that we had an opportunity to bring forward our objections in 2003 during the Environmental Assessment review period and that no objections were received at that time. They have further stated that they are very far along in the design process, and "considerable time and money has been spent". Tel: 1-888-ARRANGE WWIV. thesiJl1p!c'alteolil tive.ca I am concerned that you may not be aware of the fact that The Simple Alternative and its urban planning consultant (Walker Nott Dragicevic Associates Ltd.) were in contact with the Region and expressed our concerns in the fall of 2003, well in advance of the completion of the Environmental Assessment in April 2004. I would like to provide you with additional background information that will make sure you are fully informed of all of the actions we have taken to ensure our business is not damaged by the proposed median and the lack of response to us. Firstly, to the best of our knowledge The Simple Alternative did not receive proper official notice of the Region's intentions, or of the planned Environmental Assessment in 2003. We were only made aware of this project through an accidental discovery by our planning consultant. Despite the lack of official notice we immediately contacted the Durham Region Manager of Transportation and Planning Design, Gene Chartier, to place the Region on notice that we had serious concerns over the installation of the proposed median and asked the Region to place The Simple Alternative on their notification list. Attached please find a copy of a letter dated October 20, 2003 from our urban planning consultant to Durham Region requesting notice. Also attached by way of Durham Region fax cover sheet please find acknowledgement of the correspondence. The file was passed from Gene Chartier to the Durham Region Project Manager, Kevin Wilson. The Region assured us at that time that they would consider our position and work with us to resolve our concerns. On December 22nd, 2003 our urban planning consultant met with the Durham Region 02 staff was made aware of our concerns with the turn movement restrictions, as well as the timing when processions and visitations would likely occur (outside of the conventional peak flow periods on the roadway being between 10 a.m. and 3p.m. for processions and visitation in the evenings after 7 p.m.). ThE! impact on the viability of our business operation was made known to Regional staff. Enclosed please find minutes of that meeting. Subsequent to the meeting, and at the recommendation of our urban planner, we contracted with Trans-Plan Inc., traffic and transportation planning consultants, to represent our interests with the Region. Mr. Buonvivere, a former Manager within the Durham Region Transportation and Planning Department and a qualified traffic engineer followed up with Regional staff and provided support analysis that southbound access storage lane was achievable and could be accommodated within the median. We were informed that this was a matter that would be dealt with in the final design stage for reconstruction for widening of Brock Road, a stage that we are currently at. We are advised that our consultants did not receive notice of any further reports in the first quarter of 2004. A final report was prepared and submitted to the Minister of Environment for approval. On April 3, 2004, following the release of the Environmental Assessment which completely ignored our concerns, I filed a letter of objection to the Minister of the Environment, the Honourable Leona Dombrowsky. Attached please find a copy of our letter to the Minister. Our concerns were neithelr acknowledged nor acted upon in any manner which would assist us. Hearing nothing further on the matter you can imagine our surprise when we recently noticed survey markers being posted along the front of our Brock Road property. We immediately contacted the Region to determine what action was being taken and we were advised that the Region was preparing to ready final designs for reconstruction of Brock Road. We now understand that construction is expected to take place in 2009 with detailed design work begun this fall. I would like to emphasize to you that we have expressed our concerns continuously since we were made aware of the Region's intensions and have been largely ignored. We believe we have taken appropriate actions and steps to remain involved with the environmental assessment process from its initiation to final submissions to the Ministry of Environment. We too have spent "time and money" on this with no effect at all on the Region's determined plan to cut off our business from the families we serve. I would respectfully ask for Council's assistance at this very critical construction design stage in creating a positive opportunity to constructively resolve this matter with the Region. I understand the need for the reconstruction of Brock Road but I also believe that the impact of this construction can be mitigated with a proper design of a median which will allow a left turn into our property. As indicated at every opportunity, we believe that this access is essential to our business and for the convenience of the families we serve. As you know, the Simple Alternative takes pride in its operations and makes every effort to be a supportive and responsible business operator in the City of Pickering. I look forward to your support and will make myself available to meet and discuss this at your convenience. Although Ms. Siopis has indicated they are moving slowly and with some future study, I would ask you to act now before the Region progresses even further with its plans. J need your help at this critical juncture. Yours truly, ~.~~ Eileen Fitzpatrick President The Simple Alternative Funeral Centres Enclosures " ..v'''' ~~ ~ .... -;. -:;;. ~ ("7:.-r.~;~M""""""'",,,,,,._,,,,,,,,,,,,,_ 1.:.H../RdIL1J REG/ON --:~~CEIVED I I J--' ~ i The Sirnple Alternative Fu nera I Cen tres A~R 2 7 2004 April 3, 2004 JVORI(S DEPT. The Honourable Leona Dombrowsky . Minister of the Environment 1 ih Floor 135 St. Clair Avenue West Toronto, ON M4V 1P5 Dear Ms Dombrowsky: Re: Brock ({oad (Regional Road 1) From south of Bayly Street to north of Brougham Street City of Pickering, Region of Durham Class Environmental Assessment We have reviewed that part of the Class Environmental Assessment that affects our property at 1057 Brock Road in Pickering, the Simple Alternative Funeral Centre - Pickering Chapel. In discussion and meetings with the Region's project manger for this study, Mr. Kevin Wilson, our transportation consultants (Trans Plan Inc) were advised that a central median would be installed on Brock Road past the frontage of our site curtailing all turns into the property from the north and retaining only northbound right turns in and westbound to right turns out. The reason put forth for the median is to justify the safety and accident concerns in this corridor. We also support and appreciate the necessity to minimize accidents in the Brock Road corridor; however, to our knowledge our access on Brock Road has never been involved in any personal property damage. We are writing to request the Minister's consideration in ai/owing us to maintain a southbound entrance into our site for three to four vehicles through the provision, of a protected left storage area in the proposed median. The reason we put forth this request is based on safety and fundamental logistics with respect to our location and clientele draw. We have been operating at this location for the past two years without incidence. Ninety-five percent of all traffic to the Simple Alternative Funeral Centre originates from the north. Our traffic patterns and volumes occur primarily outside rush hour between the hours of 9:00 a.m.-12:00 p.m., 1:00 - 4:00 p.m. and 7:00 - 9:00 p.m. . , 03 Suite 500 65 Overlea Boulevard Toronto. Ontario M4H IPI Telephone 416-696-786f Fax 416-696-0227 Three locations to serve yc 275 Lesmill Road North York. Ontario M3E 2VI 1535 South Gateway Road Mississauga. Ontario L4W 5J1 1057 Brock Road Pickering. Ontario L1 W 3T7 Tel: 1 -BBB-ARRANGE WWIt". chesimp/ealcernative.c, I ,Po' ," '" 04 Our average attendance for funerals and visitations is under 60 vehicles, however, it may reach 1 00 vehicli::!s on occasion. Our consultants advise that there is sufficient room to provide for a protected southbound storage area in the proposed median and weare prepared to work with the Regional Authorities to effect the required design. Without this turn facility we will be forced to close our site and endure an extremely burdensome financial loss. We look forward to hearing from you on this matter at your earliest convenience and trust that favorable consideration will be given to our indispensable site access request for The Simple Alternative Funeral Centres - Pickering Chapel at 1057 Brock Road. Yours truly, ." / . "--7~ ~""/;-1': ...:: /--~;?z..-cX./ l._.... / Eileen Fitzpatrick President The Simple Alternative dcvK. Wilson. P. Eng. Region of Durham P.M. Madill. AMCT Regional Clerk, Region of Durham ~, JOB STATUS REPORT 05 TIME NAME FAX>> TEL>> 10/24/2003 11:19 RMR WORKS DEPT 9056687494 9056687721 DATE,TIME FAX NO./NAME DURATION PAGE(S) RESULT MODE 10/24 11: 19 9056680221 00:00:26 02 OK STANDARD ECM FACSIMILE COVER PAGE October 22j 2003 TO: Recipient: Department: Company: Fax: Rcgionlll M\\lIieip:\lIty of1)urhaOl Works Departnumt Box G2.3 Whitby. Ontnrio Clllllltll1, UN 6A3 .FROM: Name: Departm.ent: Fax: Telephone: E-mail: Valerie McGirr 905-668~0221 ~<evin Wilson Works. Transportation, Planning & Design (905) 668-2051. 1 (800) 372~ 1103. or (905) 668-7725 extension 5392 kevin.wilson@region.durham.on.ea Number ot"Pages including cover page: COMMENTS: Re: Brock Rd. Class EA Please add to the mailing list. Thanks Kevin Wilson Regional Municipality of Durham Works Department Box 623 Whitby.Ontaa-io Canada. LlN 6AJ COMMENTS: ORIGINAL OF THIS FAX: FACSIMILE C()VER PAGE 06 October 22. 2003 TO: Valerie McGirr Recipient: Department: Company: Fax: 905-668-0221 FROM: Name: Department: Fax: Telephone: E-mail: Kevin Wilson Works - Transportation, Planning & Design (905) 668-2051 1 (800) 372-1103 or (905) 668-7725 extension 5392 kevin. wilson@region.durham,on.ca Number of Pag1es including cover page: Re: Brock Rd. Class EA Please add to the mailing list. Thanks Kevin Wilson D Mailed [] COllriered II Faxed only IF YOU EXPERIENCE ANY DIFFICULTIES IN RECEIVING THIS DOCUMENT, PLEASE CALL BACK AS SOON AS POSSIBLE. THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR WHICH ITlS ADDRESSED AND MA Y CONTAIN INFORMA nON THATlS PRIVILEGED. CONFIDENTIAL DR EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF TIllS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING TIlE MESSAGE TO THE INTENDED RECIPIENT' YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION. DISTRIBUTION OR COPYING OF TIllS COMMUNIf-A nON IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED TIllS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDJA TEL Y BY TELEPHONE AND RETURN THE ORIGINAL TO US BY POSTAL SERVICE AT THE ADDRESS ABOVE. THANK YOU. " " Walker, Nott, Dragicevic Associates Limited Planning Urban Design Environmental Assessment October 20,2003 DURHA.H REGION RECEIVED' 0 7 OCT 2 2 2003 Regional Municipality of Durham Box 623, 605 Rossland Road East Whitby, Ontario L1 N 6A3 Attention: Gene Chartier, Manager of Transportation Planning and Design Dear Sir: Re:' Srock Road Environmental Assessment Request for Notification Our File: 03.657 172 S1. George Street Toronto, Ontario M5R 2M7 TEl 416 /.968-3511 FAX 416 / 960-0172 a-mail: admin@wndplan.cor web: www.wndplan.com We are the planning consultants for The Simple Alternative Funeral Centre (''The Simple Alternative"), located at 1057 Brock Road in the City of Pickering. The Simple Alternative is located adjacent to the portion of Brock Road which is subject to an Environmental Assessment ("EA") process. As the outcome of this process may have an impact on our clients lands we hereby formally request to be notified and kept informed of any future meeting(s), correspondence, and reports prepared. Your cooperation is appreciated. Yours very truly, WALKER, NOTT, DRAGICEVIC ASSOCIATES L1MITl=D Planning . Urba~ Design' .Environmental Assessment ~~ Robert A. Dragicevic, MCIP, RPP Principal cc: Clerk, ~ity of Pickering ~ \<e.v;" WI15D{\, D\.o1(\II&:'''' fle.j 10.'\ Peter R. Walker, FeIP. RPP Wendy Nolt, MCIP. RP? Robart A. Draglcovlc, MCI? R?P Principals Ja80n C. Wu, MRAlC, OM Gregory J. Daly, MeIP. RPP Associate Principals Martha Coffey Conleo"er ." t MEMORANDUM 08 Walker, Nott, I)ragicevic Associates Limited Planning Urban Design Environmental Assessment /-- -- /~~~, .. ~ To: Glen Timney, MPGC From: WNDAL Re: Dee 22 Meeting with Kevin Wilson, Whitby 172 St. George Street Toronto, Ontario M5R 2M? Tel. 416/968-:3511 Fax, 416/960-0172 e-mail: admin@wndplan.com web: www.wndplan.com Discussion of Brock Road EA and implications on TSA Date: December 31 , 2003 File: 03.657 Below are the minutes from the meeting we had with Kevin Wilson, Project Manager for the Brock Road Environmental Assessment (EA) on December 22, 2003. We met to discuss implications of the EA to The Simple Alternative at 1057 Brock Road. As initially thought, the EA incorporates plans to construct a median down the centre of Brock Road in front of TSA, while widening the roadway to allow for 6 lanes. It appears that the EA will be completed and submitted to the Ministry of Environment and Energy (MOEE) during January 2004. Upon submission, there is a 30-day review period, which will allow for submissions to MOEE to be made on behalf of any concerns TSA may have. Should the EA be approved, then there is the opportunity for an appeal of the EA. This can be a costly l~xercise. If this is the course of action that must be taken, then we would suggest speaking with neighbouring landowners ',"~~ ...in -:>1<... ~,'~ ad"-:---'ely a ff~-"....t(.:>rl h'" turn roc'tr'lctJ'ons from th,n!'l"'erlinl'''I B-=-n+:,-..,. ...,\.1 ..,10 ........__ ...,V V_IV v\....."':-''''',. -"J .. '0 .~,) . I ...","-, II' U'\.A I. UI.U"I~ together with them would distribute the cost and perhaps help to solidify the appeal position. There is a possibility of a median cut-thru specifically for TSA only, which should be considered as a first and immediate step. For this proposal to be viable, we would require the advice of a traffic consultant. An initial assessment for their work would likely cost $4,000-5,000 to determine if this is a reasonable proposal. Should you decide we proceed with this option, then we would recommend involving them immediately in order to advance this option forward to the Region in a letter before completion of the EA, and subsequently during the 3D-day review period if the option is not incorporated into the EA. I will notify Kevin Wilson via email (which I will carbon copy to you) that you are contHmplating this option so that they are aware. Page 1 of 3 " IF the EA proceeds forward unchanged, then we would suggest proceeding forward in preparing an appeal. 09 Region of Durham Works Offices, 105 Consumer Drive, Whitby 8:30am, December 22, 2003 In attendance: Bob Dragicevic (RAD), Christian Huggett (CH)- WND Kevin Wilson (KW), Region of Durham RAD - We're here to discuss the Brock Road EA, and want to clarify exactly what is proposed for the Brock Road, specifically in front of 1057 Brock Road, our client's lands. We would also like to determine the timing for when these improvements are expected to occur, and what appeal process exists. Our client is concerned about losing southbound left-turn movements. What will happen to Brock Road width, sidewalks and curb cuts? Will it be a continuous median or any options for cut-thrus? KW - The drawing you have is preliminary, and is intended to outline the objectives of the EA. The lane configuration is a 6-lane cross-section with turning lanes at intersections only. This is ultimately subject to budget requirements, commitments elsewhere in the Region, and Council. The improvements at Bayly Street and Brock Road are currently scheduled for 2004 and are in the current 5-year capital forecast, which is why they are expected to proceed next year. It is still subject to the EA being approved. Budget approval is at the end of February/March. We are anticipating filing the EA in January, which provides a 30-day comment period. The median and widening north of Plummer Street (the street directly south of TSA), all the way to Brougham is listed for 2006 as one project. RAD - is it possible that the northern leg is pushed by the development through Seaton and Duffin Heights? KVV - !t is !::lard to say - to be determined later. The Region is to secure the r9~d . widening, which could be taken through site plan if any are brought forward. This is unlikely, except in some specific cases. The road will be widened to 36m. RAD - Can the bridge over the 401 support that 36m width? KW - The sidewalks may not be supportable. That will be determined during the details of the design. RAD - Have any other options to a median been considered, like dedicated left-turn lanes? Canadian Tire at GardenlTaunton has a cut-thru. Page 2 of 3 ~ KW - The basis of the median is for safety, and to a lesser extent, speed. This is a Type A Arterial, and will carry the heaviest traffic loads. A striped median will not work1 bounci' may say 'yes' to a cut-thru for TSA with justification for it. RAD -I understand restricting movements during peak hours, but our client's activity is mostly off-peak. Funeral processions are generally from 1 Dam to 3pm, and visitations in evenings. This median will significantly affect the ability for viable business. What consultation process occurred? KW - There were two public information meE~tings. Everyone owner fronting onto Brock Road received a letter and/or flyer. (This was confirmed in an earlier memo to you) RAD - Did anyone express concern over potential loss of business resulting from this median? KW - No one was specifically concerned about that issue. If the EA is approved after filing and the comment period lapses, then any further work will be allocated in the 2005 budget. These improvements will be partially funded through development charges, so it is not so reliant on Council's decision. S:\2003\03657\Memos\031231 Mtg Minutes.doc Page 3 of 3 Ciiq of RI;PORT TO EXECUTIVE COMMITTEE Report Number: CS 51-07 Date: November 12, 200~ 1 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2007 Year End Audit Recommendation: 1. That the Audit Plan as submitted by Deloitte & Touche LLP, included as Attachment 1 to this report be received for information; and, 2. That the Chief Administrative Officer and the Director, Corporate Services & Treasurer be authorized to sign the Auditor's Engagement Letter on behalf of the City. Executive Summary: In accordance with generally accepted auditing standards the audit plan is prepared to communicate the auditor's approach and reporting responsibilities to the Executive Committee, who has oversight responsibility for the Financial Reporting Process. This plan is submitted prior to the commencement of the year end audit. Financial Implications: The audit fee, for City & Library, of $64,250 represents an increase of approximately 4% over the prior year. Sufficient provision was included in the 2007 Current Budget. Sustainability Implications: implications. This report does not contain any sustainability Background: In the Committee's role as the body responsible for oversight of the Financial Reporting Process, the Committee is to review the audit plan for the upcoming 2007 year end audit must be presented. The audit plan provides the scope of the audit services to be provided, the auditor's formal reporting responsibilities and an outline of the audit approach. It is included as Attachment 1 to this report. At the Council meeting of October 10, 2006 Resolution 154/06 appointed Deloitte & Touche as the City's external auditors for a period of 5 years which would encompass the 2006 to 2010 audits inclusive. However Deloitte & Touche require an Engagement Letter be signed annually with each audit which summarizes their role as external Report CS 51-07 Date: November 12, 2007 Subject: 2007 Year End Audit ~2 Page 2 auditor, management's responsibilities and provides the estimate of the audit fees. The audit fee for the 2007 year end audit increased overall, including City & Library, by $2,600 or approximately 4% which is deemed acceptable. Attachments: 1. Audit Plan 2. Engagement Letter ! ,--,v:.~J.-^.v ',- ,C.t.{ ~~ ...( ristine Senior Manager, Accounting Services Approved I Endorsed By: ,~4?~~ Gillis A. Paterson - Director, Corporate Services & Treasurer Prepared By: GAP:vw Attachments Copy: Chief Administrative OfficE~r Recommended for the consideration of Pickering City Council 1/ ATTACHMENT#L TO REPORT#D~r/l'd .,) 1 3 Deloitte I~~;';2~!!tporati on 0 f ;thei:~1I of Pickering ". .<>,:::..:.:......,., ~. "", .. .... ".c.,.. .., Audit Plan Year Ending Decembe'r 31, 2007 ,Audi t. Tax" ConsuJtiog. Finandnl Advisory. -- 1 4 - Delollte Deloitte & Touche LLP 5140 Yonge Street Suite 1700 Toronto, ON M2N 6L7 Canada Tel: (416) 601 6150 Fax: (416) 601 6151 www.deloitte.ca October 24, 2007 Private and confidential The Members of the Executive Committee The Corporation of the City of Pickering 1 The Esplanade Pickering ON LlV 6K7 Dear Executive Committee Members: Weare pleased to submit for your review our 2007 audit plan for the audit of the consolidated financial statements of the Corporation of the City of Pickering (the "City") for the year ending December 31, 2007. The key objectives of this document, in accordance with Section 5751 of the CICA Handbook, "Communication With Those Having Oversight Responsibility for the Financial Reporting Process", are to communicate the following matters to you prior to the commencement of our audit: · Our services to be provided; · Our formal reporting responsibilities; and · An outline of our audit approach. We view the development of our audit plan as an important process that provides all parties involved in the audit (i.e. the Executive Committee, Management and Deloitte & Touche LLP,) with an opportunity to assess together audit needs, focus areas, audit approach and expectations for performance, and we look forward to meeting with you to answer any questions which you may have. This audit plan is intended solely for the: use of the Executive Committee, to assist it in discharging its responsibilities with respect to the financial statements and should not be used for any other purpose. Any use that a third party makes of this report is the responsibility of such third party. Yours truly, &~ 0/- -r~~ LL/ Chartered Accountants Licensed Public Accountants Member of Deloitte Touche Tohmatsu , II' 1 5 Table of contents Client service objectives 3 Financial reporting responsibilities 4 Formal auditor responsibilities 5 Audit plan considerations 7 Audit approach 8 Areas of audit focus 12 Auditor independence 14 Appendices I - Current Public Sector Accounting Developments II - Implementation Planning - Tangible Capital Assets (c) Deloitte & Touche LLP and affiliated entities. City of Pickering - 2007 Audit Plan 2 ---~~ 1 6 Client service objectives In serving you, we develop client servicta objectives that strive to meet the expectations of both the Executive Committee and management. Our client service objectives for 2007 are: · Develop an audit plan to fulfill professional requirements and provide timely, value added services. · Deliver professional services to assist the Executive Committee in meeting the current requirements of Canadian Generally Accepted Accounting Principles ("GAAP") and financial reporting requirements. · Assist the Executive Committee in the early identification of changing professional requirements regarding Canadian GA,AP and other reporting requirements. · Review with the Executive Committefa and management the identified areas of risk or focus and develop the appropriate audit response. · Assign a service team specific to the City's needs. · Maintain and demonstrate our commitment to the municipal sector. · Proactively keep the Executive Committee and management informed as to current business, financial and other developments, which are relevant to the City. · Regularly communicate with management so that they are fully informed of the status of our audit work and issues detected through such work on a timely basis. · Provide regular communication to the Executive Committee and management on our findings. Integral to our audit plan is an understanding of the financial reporting responsibilities of the Executive Committee, management and Deloitte & Touche LLP ("Deloitte"). These have been documented on the following page. @ Deloitte & Touche LLP and affiliated entities. City of Pickering - 2007 Audit Plan 3 1 7 Financial reporting responsibilities Executive Committee . Review the audit plan. . Meet with the external auditors to discuss the results of the audit and review the Report on the Results of the Audit. . Review, recommend and approve the annual financial statements and disclosures. . Follow up on audit recommendations. . Maintain oversight of the systems of internal control. . Understand, discuss and address fraud and error risks with management. . Oversight in managing and monitoring financial risks. . Review external financial communications. Management . Maintain appropriate controls and accurate financial records. . Report financial results on a fair, consistent and timely basis in accordance with GAAP. . Select appropriate accounting and disclosure policies. . Maintain compliance with reporting and regulatory requirements. . Identify principal risks and establish and maintain a cost-effective control environment. . Prepare financial statements. . Provide management representations. Deloitte . Perform a cost-effective audit in accordance with Canadian generally accepted auditing standards. . Assess accounting principles and financial statement disclosures. . Review key management control systems and processes and assess audit risk. . Report opportunities for improvements in control processes. . Express an opinion on the fairness of presentation of the financial statements. . Provide industry expertise to support the risk-based audit approach. _._...c.c:o.u_:-._.'.:.,......... ..... ','c:-'-'-'.' .. . -:^'_-"""",_::"",;.dF'o#-':/,~.",~.,.",;;:"""""'.:,.,"''''.:;.. .'.;' 1 8 Formal auditor responsibilities We have been engaged to perform the following statutory audits for the year ending December 31, 2007: . Consolidated financial statements of the Corporation of the City of Pickering (the "City") ; . Financial Statements of the City of Pickering Public Library Board; and . Financial Statements of the City of Pickering Trust Funds. As external auditors of the City we are alccountable to the Executive Committee. Our formal communications will include: . The audit plan, including the level of responsibility assumed in performing an audit under Canadian generally accepted auditing standards; . The results of our audit, including any difficulties encountered in performing the audit; . Our auditors' report on the financial statements; . Our management letter; and . Confirmation of our independence and disclosure of any relationships that bear on our independence. 1 9 Formal auditor responsibilities (continued) If, during the course of our audit, we observe any of the following we commit to report them to you. This will be done in our Report on the Results of our Audit, or earlier, if considered necessary. Our findings will be based on the audit work considered necessary by us to render our opinion on the financial statements. We are not required to perform any additional procedures to provide assurance on these matters. 1. Significant weaknesses in internal control relating to the preparation of the financial statements 2. Illegal acts 3. Non-compliance with regulatory requirements 4. Significant transactions inconsistent with the ordinary course of business, including fraud or possible fraud 5. Unusual related party transactions 6. New significant accounting principles or policies 7. Management's judgments and accounting estimates 8. Misstatements, including unadjusted audit differences and/or errors discovered in the audit which have been corrected ~ ""'_I_a..~_ 0_ ......................... II n ........... ....":1:................ ............:1..:"..,.. 9. Disagreements with management 10. Management consultation with other accountants about any significant auditing or accounting matters 11. Major issues discussed with management that influence audit appointment 12. Difficulties encountered during the audit 13. Limitations placed on the scope of our audit 14. Unusual transactions that significantly increase the risk of loss 15. Actions that, if they became public, might cause embarrassment ri~u n.~ Dil"'L-o,.inn _ .,nn7 A.uU.. PI;:(jn ,; 20 Audit plan considerations Monitor significant changes in the municipal sector Consider significant changes (if any) in operations of the City Consideration of any significant transactions of the City Review of current regulatory, accounting and auditing developments Risk environment assessment Discussions with Management & Executive Committee Reassessment of critical accounting policies & management estimates ] -- Assess prior year's audit scope and findings 2007 audit scope · Confirmation of overall risk/materiality. . Confirm areas of audit focus and extent of testing · Develop a risk-based -audit approach. (?\ nolnit-to It Tnl.rho I I D ::ann ::Ilffili::atan .ontitioC! rit\l nf Dir.....orinn _ ?nn7 Alu-tit DI::an 7 Audit approach 21 Planning . Review results from prior year's audit. . Understand governance processes and expectations. . Assess areas of risk and exposure in financial statement reporting. . Assess design and implementation of entity wide controls and significant business cycle controls. . Update understanding of the business. . Establish materiality guidelines. '~l.E."~~~~:r~"...~'~-'>'-~","-" Testing of systems &. controls . Test the operating effectiveness of key control activities upon which we intend to rely. . Consider reliability and integrity of technology that supports key processes and controls. . Consider the control and governance processes underlying all significant transactions. Five key elements . Consideration of governance processes. . Premised on understanding your business . Focused on key risks. . Partner led, with high involvement and specialized skills. . Committed to delivering value. t~,':"~'l:2,'C':3ti-'i.:.\~~~..z~:,t:fmZ'!iJ2:,~--;S1:~.' Review of disclosures . Consider impact of new accounting and regulatory pronouncements. . Assess compliance with Canadian GAAP for local governments. Substantive testing . Test significant transactions and account balances. . Consider appropriateness and relevance of accounting policies. . Evaluate results based on materiality guidelines. If) n~lnitt~ Ar Tnllrhp II P o=tnrl ::1ffili;\tprt pntitips. City of Pickerina - 2007 Audit Plan 8 22 Audit approach (continued) Materiality Materiality is an essential element of Canadian Generally Accepted Auditing Standards (" GAAS") . Materiality is defined as: ...the magnitudE~ of an omission or misstatement (including an omission) of accounting information either individually or in aggregate that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been influenced or a decision changed, as a result of the misstatement. ..."""""......~;-- .,~ We consider materiality in assessing where to focus our testing, as a basis for determining the extent of our testing (i.e., sample sizes) and in the evaluation of financial statement presentation and disclosures. Our audit approach is designed to identify "material" misstatements in the financial statements. Certain items, such as related party disclosures and commitments, may be considered significant based on qualitative reasons. Otherwise, the amounts are considered to be material if they exceed a quantitative guideline. Materiality is calculated based on professional judgment, which involves an assessment of quantitative and qualitative considerations. Our quantitative calculation of materiality is based on current assurance guidelines. Consistent with the prior year, we have selected budgeted expenditures as the quantitative base for materiality. In our professional judgment, this measure most appropriately meets the needs of the users of the financial statements. We will use 1.5% of budgeted expenditures for our planning materiality. All differences noted during the audit will be accumulated and discussed with management to determine if adjustments are required to the financial statements. Details of both the significant adjustments and unadjusted amounts will be reported to the Executive Committee. tel ()plnith' P" Touchp I I P ;mrl ;lffili;lh.r1 ..ntiti",c: ritv of Pick..rinn - 7nn7 Allrlit PI;ln Q 23 Audit approach (continued) Auditor's Responsibility to Consider Fraud Risk The Executive Committee should recognize that every organization has inherent fraud risks due to internal and external conditions such as size, dispersed locations, general economic conditions, nature of various operations, etc. There are three common fraud risk factors, the existence of which can increase the likelihood that fraud could occur. These are: . pressures and incentives; . attitudes/rationalization; and . opportunity. Executive Committee's Response to Fraud Risk . Recognizing that it is not always possible to create internal controls to address attitudes and rationalizations, the Executive Committee must be prepared to respond to fraud . With Executive Committee oversight, management can facilitate a strong internal control environment to minimize fraud opportunities . The Executive Committee's oversight and understanding of fraud risks helps to ensure that management fulfills its responsibility and can also deter management from committing fraud . Keys to success in minimizing fraud: - Strong internal controls - Proper "tone at the top" - Appropriate and timely adverse consequences for perpetrators of fraud - Consideration of an effective Whistleblower Policy and related Procedures - Understanding the risk factors: pressure/incentives, attitude and rationalization and opportunity tP\ nalnif-h3 III Tnllrha I I D ;anrl :;;affili;;lhan gnt-i1--iAIOO: ritv of Pi..-k..rinn - ?007 Allnit PIAn 10 24 Audit approach (cctntinued) Specific inquiries to be addressed b" the Executive Committee . Any knowledge of any actual, suspected or alleged fraud affecting the City? . What role, if any, does the Executive Committee exercise in the oversight of: 1. Management processes for identifying and responding to the risk of fraud in the City? 2. The internal controls that management has established to mitigate these risks? . What are your views about the risks of fraud in the City? IC\ n",lnitt", R. Tn"...h", II P ;:,nr! ;:,ffili;:,t",r! "'ntiti",c:~ C:itv of Pic:kprina - 2007 Audit Plan 11 Areas of audit focus We have identified the following areas of focus: Description of Areas of Focus . Determine if cut-off of revenues and expenditures is appropriate. . Accuracy and completeness of certain liabilities such as Workplace Safety and Insurance ("WSIB") and Post employment benefits. . Approval of transfers to and from reserve and reserve funds @ Deloitte & Touche LLP and affiliated entities. Audit Response . Focused substantive testing on accounts payable, accrued liabilities, deferred revenue and accounts receivable. . Test disbursements and cash receipts subsequent to year end. . Test supporting assumptions for accrued liabilities, deferred revenue and accounts receivable. . Review actuarial report including related assumptions. . Ensure appropriate accounting treatment has been applied. . Review related financial statement note disclosure. . Communicate with actuary on our reliance on their report for audit purposes. . Focused testing on the continuity and material transactions to determine if transfers are in accordance with council approvals and/or legislative requirements. City of Pickering - 2007 Audit Plan 25 12 26 Areas of audit focus (continued) Description of Issue/Risk . Compliance with PS3070 "Investment in Government Business Enterprise"'. · Requires management judgement (i.e. allowance for assessment: appealsl, contingent liabilities, etc.). . Revenue Recognition @ Deloitte & Touche LLP and affiliated entities. Audit Response . Review accounting for Investment in Veridian Corporation and related disclosures. . Review financial statements of Veridian Corporation. . Communication with Veridian Corporation's auditor on our reliance on their auditor's report for purposes of the City's audit. . Focused review of calculations and support. . Discussion with management. . Analytic review of related accounts. . Focused testing to ensure restricted contributions (i.e. development charges, gas tax, conditional grants) have been recognized as revenue in the appropriate period. City of Pickering - 2007 Audit Plan 13 27 Auditor independence The rules of professional conduct require that we communicate with you on an annual basis all relationships between the City (including its related entities) and Deloitte that, in our professional judgment, may reasonably be thought to bear on our independence. In determining whether a relationship exists that may be thought to bear on our independence, we must consider the following matters: . Whether a financial interest, either directly or indirectly, exists; . Whether a position, either directly or indirectly held by us, gives us the right or responsibility to exert significant influence over the financial or accounting policies of the City; . Economic dependence on the City; . Services provided to the City in addition to the audit engagement; and . Any personal or business relationships of immediate family, close relatives, partners or retired partners, either directly or indirectly with the City. We confirm that we continue to be independent under the Rules of Professional Conduct of the Institute of Chartered Accountants of Ontario. We formally confirmed our independence as auditors of the City in a letter dated July 6, 2007 and we will formally report again at the conclusion of the 2007 audit. tEl n..lnith, R. Tnllrh.. I I P >lnrt >lffili>lt..rt ..ntiti.." C":itv nf Pirk..rinn - 7007 Allrtit PI"n 14 28 Appendix I - Current Public Sec:tor Accounting Developments Accounting Developments The Public Sector Accounting Board's ('PSAB') goal is better financial and performance information for government decision-making and accountability. PSAB meets this goal by setting accounting standards tailored to meet the unique information needs of the public sector. The new developments that are most relevant to the City have been summarized below. PS 2700 Segment Disclosures . In January 2006, PSAB approved Section PS 2700, Segment Disclosures, which is applicable to all governments. · The Section establishes standards on how to define and disclose those segments in the government's summary financial statements. · The Section is based on the premise that the activities of a government are so broad and encompass so wide a range of diffl:!rent activities that it is valuable to disclose selected disaggregated financial information about particular segments of a government. · PS 2700 includes a variety of examples to demonstrate to users what the prescribed disclosures would entail. · Effective for fiscal years beginning on or after April 1, 2007. Earlier adoption is encouraged. fC) nplnittp R. Tnllrhp II P "nrl "ffili"tprl pntit;p" C'itv nf Pirltprinn - 'J007 Allrlit PI"n 10:; 29 Appendix I - Current Public Sector Accounting Developments (continued) PS 3150 - Tangible Capital Assets . In June 2006, PSAB approved Section PS 3150. . The Section establishes standards on how to account for the measurement, amortization, write-down and disposal of tangible capital assets, as well as describing the requirements for presentation and disclosure in the City's financial statements. . PS 3150 also provides some transitional guidance in conjunction with PSG7, Tangible Capital Assets of Local Governments. . Effective for fiscal years beginning on or after January 1, 2009. Earlier adoption is encouraged. . Appendix II provides an overview of the impact that implementing this new standard will have on the City. @ Deloitte & Touche LLP and affiliated entities. City of Pickering - 2007 Audit Plan 16 ,..-,~...,.-....._^,-~._,. "'_.,..._."'._m.m___........___IOE-",..,;...,'""..-d,I"".._~. ,".,'",.,wii~ -~~:~C';.j;~);','t,';::';,":';'" 'n;~'l,,-,,:,;'r;i,:'" 30 Appendix I - Current Public Sector Accounting Developments (coI1tinued) New Reporting Model - PS1000, PSll00, PS1200 . In November, 2006 PSAB approved revisions to sections PS 1000, Financial Statement Concepts; PS 1100, Financial Statement Objectives, and PS 1200 Financial Statement Presentation which made these sections applicable for local governments. . The existing sections previously applied only to senior levels of government, the revised sections are intended to apply to all levels of governments under PSAB. . The main features of these sections are as follows: i. PS 1000 - Financial Statement Concepts (Revised) sets out definitions of assets, liabilities, revenues and expenses defines revenue and expenses in terms of changes in assets and liabilities requires full accrual accounting to be used provides general recognition and measurement principles ii. PS 1100 - Financial Statement Objedives (Revised) This section identifies and describes the objectives of government financial reporting and the nature and scope of financi,al information required to be presented in the financial statements. The main features of the section relate to objectives for: the scope of activities to be included in the report reporting financial position - reporting changes in financial position reporting cash flows, and legislative control and financial accountability @ Deloitte & Touche LLP and affiliated entities. City of Pickering - 2007 Audit Plan 17 31 Appendix I - Current Public Sector Accounting Developments (continued) New Reporting Model - PS1000, PSll00, PS1200 (continued) Iii. PS 1200 - Financial Statement Presentation . The recommended financial statements are: - a statement of financial position that reports both net debt and an expense- based accumulated surplus jdeficit as the two indicators of financial position; - a statement of operations that reports the annual surplus / deficit as the difference between revenues and expenses; - a statement of change in net debt that highlights capital spending for the period in reconciling to closing net debt from the annual surplus / deficit; and - a statement of cash flows that replaces the existing statement of changes in financial position. The statement provides for a new capital category that reflects the service nature of government capital assets. The direct or indirect method is allowed for presenting the operating activities' cash flows, although a preference for the direct method is stated. · Current year budget figures are to be provided on the "statement of operations" and the statement of "changes in net debt" for the same scope of activities and on a basis consistent with that used for actual results. · The revised sections will to apply to local governments for fiscal years beginning on or after January 1, 2009. · PS 1700, Objectives of Financial Statements - Local Governments; and PS 1800 General Standards of Financial Statement Presentation - Local Governments, are to be withdrawn from the PSAB handbook. @ Deloitte & Touche LLP and affiliated entities. City of Pickering - 2007 Audit Plan 18 _..~.'..----~'''..._. 32 Appendix I - Current Public Sec:tor Accounting Developments (continued) PSG-7 Accounting Guideline Tangible Capital Assets of Local Governments . Provides transitional guidance to locallgovernments on presenting information related to tangible capital assets in the notes or schedules to the summary financial statements. . PSG-7 applies until section PS3150's applicability to local governments is adopted. . Effective for fiscal years beginning on or after January 1, 2007. Statement of Recommended Practice (SORP) Public Performance Reporting Performance Reporting Project . The final Statement of Recommended Practice (SORP) "Public Performance Reporting" was approved by PSAB in June, 2006. . Designed to develop a set of basic principles that will guide the future development of performance reporting including a framework for identifying specific performance indicators, and provide for consistency in performance reporting. . Local governments should be reviewin~1 this "SORP" for guidance on improved performance reporting in future. @ Deloitte & Touche LLP and affiliated entities. City of Pickering - 2007 Audit Plan 19 33 Appendix I - Current Public Sector Accounting Developments (continued) PSAB Projects in Process Financial Instruments Project . Issue: Increase in availability and use by governments of sophisticated, non-traditional financial instruments gives rise to complex recognition and measurement issues. . In January 2005, the AcSB approved three Handbook sections: Financial Instruments - Recognition and Measurement, Section 3855, Comprehensive Income, Section 1530 and Hedges, Section 3865. The new standards are for fiscal years beginning on or after October 1, 2006. . PSAB is silent, therefore new standards in the private sector handbook will be applicable to government business enterprises and government business-type enterprises for the purposes of preparing their own financial statements. . Expected to pose accounting and reporting difficulties for governments. . In January 2006 PSAB approved Public Sector Guideline PSG-6, "Including the Results of Organizations and Partnerships Applying Fair Value Measurement". It also approved a Statement of Principles for the recognition and measurement of derivatives for comment. . In June 2006, PSAB initiated a survey to ask governments at all levels about the nature and extent of, as well as current reporting practices for, their financial Instruments, and methods of hedging related risks. . In March 2007 PSAB approved a Statement of Principles providing a comprehensive set of principles addressing recognition and measurement of financial instruments (including derivatives) and hedge accounting. . Objective of project will be to develop standards that will make government's use of financial instruments as transparent and understandable as possible. lcl Deloitte & Touche LLP and affiliated entities. City of Pickering - 2007 Audit Plan 20 ~_"_~, "~~':'-~':"-<;;:,;::~,,,,.~,,':,:;;::;;;;::;;:,;;;,,:::,~,;;~,...r-:: ~iiii ~,tr.;~__...~_, 34 Appendix I - Current Public Sec:tor Accounting Developments (col,tinued) I PSAB Projects in Process (continued) Government Transfers . In March 2007 PSAB approved a Re-Exposure Draft dealing with "Government Transfers". . The major issues in this project include: - Resolve the debate over the appropriate accounting for multi-year funding provided by governments. - Clarify the nature and extent of authorization needed to be in place to recognize the government transfer. - Clarify the degree to which stipulations imposed by the transferring government should impact the timing of recognition of the transfer by both the transferor and recipient governments. - Addresses the appropriate accounting for capital transfers received under an expense-based accounting regime. Assessment of Tangible Capital Assets . In March 2007 PSAB approved a Statement of Principles called Assessment of Tangible Capital Assets. . A major factor in determining a government's financial ability to maintain existing levels of services is access to financial and other information about the stock, use and condition of its infrastructure. This information is essential for understanding the financial demands infrastructure places on governments, including the costs associated with using it and those associated with the ongoing need for maintenance, renewal and replacement. . This project will result in the development of a Statement of Recommended Practice (SORP) providing guidance on reporting financial and other information about tangible capital assets. . It is anticipated that a final SORP will be approved in June 2008. @ Deloitte & Touche LLP and affiliated entities. City of Pickerinq - 2007 Audit Plan 21 35 Appendix I - Current Public Sector Accounting Developments (continued) PSAB Projects in Process (continued) Introduction to Public Sector Accounting Standards . In June 2007 PSAB approved an Exposure Draft relating to the Introduction to Public Sector Accounting Standards. . The objective of the project is to revise the "Introduction to Public Sector Accounting Standards" to clarify which GAAP government organizations should apply when preparing their own financial statements. . PSAB needs to assess the effect of the AcSB strategies on government organizations that currently are directed to use GAAP in the CICA Handbook - Accounting. . PSAB intends to consider the impact of the AcSB strategies on government organizations in two phases. The first phase proposes that government business enterprises and government business-type organizations follow GAAP for publicly accountable enterprises. . The second phase will examine the implications for government not-for-profit organizations and other government organizations that may currently apply the CICA Handbook - Accounting. Indicators of Government Financial Condition . In September 2006 PSAB approved a Project Proposal for Indicators of Government Financial Condition. . The objective of this project is to issue a new Statement of Recommended Practice (SORP) that would recommend indicators of financial condition for each level of government. . The demand for additional information to demonstrate the government's accountability and performance has been increasing and this project will consider which indicators of financial condition would be relevant at the local government level. . PSAB has endorsed a multi-stage effort to make performance reporting a relevant and sustainable practice. @ Deloitte & Touche LLP and affiliated entities. City of Pickering - 2007 Audit Plan 22 36 Appendix II - Implementation Pllanning - Tangible Capital A:ssets @ Deloitte & Touche LLP and affiliated entities. City of Pickering - 2007 Audit Plan 23 Implementation Planning - Tangible Capital Assets Readiness Assessment Assess Readiness & Establish.. project . Organize resources · Interview stakeholders · Define policy, process and information needs and assess competencies required · Evaluate current state and document gaps · Draft readiness report and review with stakeholders Develop Detailed Work Plan City's Plan · Detailed timeline of activities and investments required to fill gaps · Identify the resources with appropriate competencies needed to enable PS3150 implementation · Support development of project charter · Validate with Stakeholders @ Deloitte & Touche LLP and affiliated entities. Policies/ Procedures & Disclosures Implementation ofne"" way of doing business · Support the City's team implementing new policies, procedures/ processes · Management review and evaluation of changes to meet PS 3150 · Review other Financial Stmt disclosure needs · Support engaging external auditor to obtain their agreement Asset Information & Systems Develop enabling sYstem elements · Support City's plan to modify IT architecture and processes to meet information requirements · Provide advice on tools or systems to integrate existing data · Support Data clean up/ creation requirements Train Staff Train staff in PS3150 requirements · Identify communication and training needs . Define Audience · Evaluate various training options within the City's existing training environment . Develop material and learning plan · Execute Training program City of Pickering - 2007 Audit Plan Sustainment Permanent Change · Validate new policies and processes · Review effectiveness of information system solutions · Support external audit evaluation of new process and systems · Continuous improvement 24 (N '-J 38 Deloitte @ Deloitte & Touche LLP and affiliated entities. Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services through more than 6,800 people in 51 offices. Deloitte operates in Quebec as Samson Belair/Deloitte & Touche s.e.n.c.r.l. The firm is dedicated to helping its clients and its people excel. Deloitte is the Canadian member firm of Deloitte Touche Tohmatsu. Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms, and their respective subsidiaries and affiliates. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu 1101' any of its member firms has any liability for each other's acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names "Deloitte," "Deloitte & Touche," "Deloitte Touche Tohmatsu," or other related names. Services are provided by the member firms or their subsidiaries or affiliates and not by the Deloitte Touche Tohmatsu Verein.' . Member of Deloitte Touche Tohmatsu ATTACHMENT#~ TO REPORT # <:.'5.5"/"07 Deloitte 39 Deloitte & Touche LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 6L7 Canada October 24, 2007 Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca Mr. Thomas Quinn Chief Administrative Officer The Corporation of the City of Pickering 1 The Esplanade Pickering ON Ll V 6K7 Mr. Gillis Paterson Director, Corporate Services and Treasurer The Corporation of the City of Pickering 1 The Esplanade Pickering ON Ll V 6K7 Dear Mr. Quinn and Mr. Paterson: Deloitte & Touche LLP ("Deloitte" or "we" or "us") is pleased to serve as your auditors for the year ending December 31, 2007. Ms. Paula Jesty will be responsible for the services that we perform for The Corporation of the City of Pickering, including the City of Pickering Public Library Board and the City of Pickering Trust Funds (collectively the "City"). She will, as considered necessary, call upon other individuals with specialized knowledge, either in this office or elsewhere in our firm to assist in the performance of our services. In addition to the financial statement audits we are engaged to provide under this engagement letter, we would also be pleased to assist the City on issues as they arise throughout the year. Hence, we hope that you will call Ms. Paula Jesty whenever you believe Deloitte can be of assistance. We will perform this engagement subject to the terms and conditions set forth herein and in the accompanying appendices. Audit of financial statements Our engagement is to perform an audit of the City's financial statements for the year ending December 31, 2007 in accordance with Canadian generally accepted auditing standards ("Canadian GAAS") for the following entities: . Consolidated financial statement of the Corporation of the City of Pickering; . Financial statements of the City of Pickering Public Library Board; and . Financial statements of the City of Pickering Trust Funds. The objective of a financial statement audit conducted in accordance with Canadian GAAS is to express an opinion on the fairness of the presentation of the City's financial statements for the year ended December 31, 2007 in accordance with Canadian generally accepted accounting principles ("Canadian GAAP"), in all material respects. Appendix A contains a description of a financial statement audit under Canadian GAAS. The Corporation of the City of Pickering October 24, 2007 Page 2 40 Our ability to express an opinion and the wording of our opinion will, of course, be dependent on the facts and circumstances at the date of our report. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opin:.on, we may decline to express an opinion or decline to issue a report as a result of this engagement. If we are unable to complete our audit or if our auditors' report requires modification, the reasons therefore will be discussed with the Executive Committee and the City's management. Management's responsibilities Appendix B describes management's responsibilities for (1) the financial statements and the effectiveness of internal control over financial reporting, (2) representation letters, (3) the process for obtaining pre- approval of services, as applicable, (4) independence matters as a result of restrictions on providing certain services, (5) independence matters relating to hiring, and (6) fraud and error. Auditor communications with those having oversight responsibility for the financial reporting process In accordance with Canadian GAAS, we are required to communicate with those having oversight responsibility for the financial reporting process about various matters in connection with our audit. Appendix C describes such communications. Inclusion of Deloitte reports or references to Deloitte in other documents and on electronic sites If the City intends to publish or otherwise reproduce in any document our report on the City's financial statements, or otherwise make reference to Deloitte in a document that contains other information in addition to the audited financial statements, thereby associating Deloitte with such document, the City agrees that its management will provide Deloitte with a draft of the document to read and obtain our written consent for the inclusion or incorporation by reference of our report, or the reference to Deloitte, in such document before the document is printed and distributed. The inclusion or incorporation by reference of our report in any such document would constitute the re-issuance of our report. Management agrees to provide adequate notice of the preparation of any such public documents. The City cJso agrees that it will notify us and obtain our approval prior to including our report on an electronic site. Further, it is agreed that in any electronic distribution, for example on the City's Web site, management is solely responsible for the accurate and complete reproduction of our report and the subject matter on which we reported. Our engagement to perform the services described above does not constitute our agreement to be associated with any such documents published or reproduced by or on behalf of the City. Any request by the City to re-issue our report, to consent to its inclusion or incorporation by reference in an offering or other document, or to agree to its inclusion on an electronic site, will be considered based on the facts and circumstances existing at the time of such requesl The Corporation of the City of Pickering October 24, 2007 Page 3 41 Fees We estimate that our total fees for this audit will be as noted below, plus reasonable expenses and applicable taxes (such as Goods and Services Tax): The Corporation of the City of Pickering (including Trust Funds) Pickering Public Library Board $59,750 $4,500 Appendix D includes circumstances affecting timing and fee estimates. Other matters This engagement letter, including the appendices attached hereto and made a part hereof, constitutes the entire agreement between the parties with respect to this engagement and supersedes all other prior and contemporaneous agreements or understandings between the parties, whether written or oral, relating to this engagement. This engagement contract will continue in force for subsequent audits unless amended by the mutual consent of oursel ves and the City. If the above terms are acceptable and the services described are in accordance with your understanding, please sign the copy of this engagement letter in the space provided and return it to us. Yours truly, &~ 'f -r~~ LLI Chartered Accountants Licensed Public Accountants Enclosure The Corporation of the City of Pickering October 24, 2007 Page 4 42 The services and terms set forth in this contract are acknowledged and approved by the Council of The Corporation of the City of })ickering: Signature Title Date The services and terms set forth in this contract are accepted and agreed to by The Corporation of the City of Pickering management: Signature Title Date Appendix A Description of a financial statement audit in accordance with Canadian GAAS The Corporation of the City of Pickering December 31, 2007 43 Components of a financial statement audit A financial statement audit includes the following: . Obtaining an understanding of the entity and its environment, including internal control, sufficient to identify and assess the risks of material misstatements of the financial statements, and sufficient to design and perform further audit procedures. This understanding is not sufficient for, and should not be relied upon for, any other purpose; . Examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; . Inquiring directly of those responsible for oversight of the financial reporting process regarding their views about the risk of fraud and whether they have knowledge of any fraud or suspected fraud affecting the City; . Assessing the accounting principles used and significant estimates made by management; and, . Evaluating the overall financial statement presentation. Reasonable assurance We will plan and perform the audits to obtain reasonable assurance about whether the financial statements present fairly, in all material respects, the financial position, results of operations and changes in financial position in accordance with Canadian GAAP. Accordingly, we will design our audit to provide reasonable, but not absolute, assurance of detecting material misstatements whether caused by error or fraud. It is important to recognize that there are inherent limitations in the auditing process. Material misstatements, if they exist, may not be detected because of factors such as the use of judgment, the concept of selective testing of the data underlying the financial statements, and the persuasive rather than conclusive nature of much of the evidence. Because of the nature of fraud, including attempts at concealment through collusion and forgery, an audit designed and executed in accordance with Canadian GAAS may not detect a material fraud. Furthermore, while effective internal control reduces the likelihood that misstatements will occur and remain undetected, it does not eliminate that possibility. For these reasons we cannot guarantee that fraud, error or other illegal acts, if present, will be detected. Internal control over financial reporting We obtain an understanding of internal control relevant to the audit however not all controls are relevant to every audit. We evaluate the design of controls relevant to the audit and detennine whether they have been implemented. We are not, however, required to determine whether relevant controls are operating effectively. Although it is not required by generally accepted auditing standards we may decide that, for a particular engagement, it makes sense to rely on the effective operation of some controls in determining the substantive procedures we will perform. In this case we would go beyond evaluating the design of relevant controls, and determining whether they have been implemented, to also test whether the controls on which we intend to rely are operating effectively. Accordingly while generally accepted auditing standards require us to report to the Executive Committee any significant weaknesses that have come to our attention, we may not be aware of all material weaknesses in internal control that do, in fact, exist. While we are not obligated to report other control matters coming to our attention we will endeavour to report to management, and if requested the Executive Committee, other control deficiencies that we believe may be of interest to management. 44 Appendix B Management's responsibilities The Corporation of the City of Pickering December 31,2007 Financial statements and the effectiveness of internal control over financial reporting The preparation and overall accuracy of the financial statements and their conformity with Canadian GAAP is the responsibility of the City" s management. In this regard, management has the responsibility for, among other things: 1. Establishing and maintaining effective internal control over financial reporting and informing Deloitte of weaknesses identified in the design or operation of internal control over financial reporting; 2. Identifying and ensuring that the City complies with the laws and regulations applicable to its activities and informing us of any known material violations of such laws or regulations; 3. Adjusting the financial statements to correct material misstatements; 4. Safeguarding assets; and, 5. Making available to us complete information relating to the engagement including, but not limited to, all financial records and related data including information on the recognition, measurement and disclosure of specific items, and copies of all minutes of meetings of council, and committees of council. Representation letters We will make specific inquiries of the City's management about the representations embodied in the financial statements and internal control over financial reporting. As part of our audit procedures, we will request that management provide us with a representation letter acknowledging management's responsibility for the preparation of the financial statements and affirming management's belief that the effects of any uncorrected financial statement misstatements aggregated by us during the current audit engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. We will request that management confirm certain significant representations made to us during our audit on matters that are: 1. Directly related to items that are material, either individually or in the aggregate, to the financial statements; 2. Not directly related to items that are material to the financial statements but are significant, either individually or in the aggregate, to the engagement; and, 3. Relevant to management's judgments or estimates that are material, either individually or in the aggregate, to the financial statements. The responses to inquiries and related written representations of management required by Canadian GAAS are part of the evidential matter that we will rely on as auditors in forming our opinion on the City's financial statements. Appendii\ B 45 Independence matters For purposes of the following two paragraphs, "Deloitte" shall mean Deloitte & Touche LLP, Deloitte Touche Tohmatsu, its member firms and the affiliates of Deloitte & Touche LLP, Deloitte Touche Tohmatsu and its member firms. Independence matters as a result of restrictions on providing certain services In connection with our engagement, Deloitte, management, and the Executive Committee will assume certain roles and responsibilities in an effort to assist Deloitte in maintaining independence and ensuring compliance with Canadian independence rules. Deloitte will communicate to its partners and employees that the City is an attest client. Management of the City will ensure that the City, together with its subsidiaries and other entities, that comprise the City for purposes of the consolidated financial statements, has policies and procedures in place for the purpose of ensuring that neither the City nor any such subsidiary or other entity will act to engage Deloitte or accept from Deloitte any service that either has not been subjected to their pre-approval process or that under Canadian independence rules or other applicable rules would impair Deloitte's independence. All potential services are to be discussed with Ms. Paula Jesty. Independence matters relating to hiring Deloitte must assess threats to independence created when a former Deloitte partner or member of the engagement team is employed by Management. In order to assist Deloitte in maintaining independence, management should notify Ms. Paula Jesty where substantive employment conversations have been had with a former or current Deloitte partner or engagement team member. Fraud and error Management is responsible for: 1. Designing and implementing programs and controls to prevent and detect fraud; 2. Informing us about all known or suspected fraud affecting the City involving (a) management, (b) employees who have significant roles in internal control, and (c) others where the fraud could have a material effect on the financial statements; 3. Informing us of its knowledge of any allegations of fraud or suspected fraud affecting the City received in communications from employees, former employees, or others; 4. Informing us of any information it might have regarding any concerns or allegations of potential errors in the selection of accounting policies or the recording of transactions affecting the City that have been communicated to it by employees, former employees, or others, whether written or oral; 5. Informing us of its assessment of the risk that the financial statements may be materially misstated as a result of fraud; and, 6. Communicating its belief that the effects of any uncorrected financial statement misstatements aggregated during the audit are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. 46 Appendix C Auditor communications The Corporation of the City of Pickering December 31, 2007 Independence communications In accordance with Canadian GAAS, we will disclose to the Executive Committee, in writing, all relationships between Deloitte and the City and i1:s related entities, that in our professional judgment may reasonably be thought to bear on our independence and confirm to the Executive Committee in such letter whether, in our professional judgment, we are independent of the City and its related entities within the meaning of the Rules of Professional Conduct of our profession. For purposes of this paragraph, "Deloitte" shall mean Deloitte & Touche LLP, Deloitte Touche Tohmatsu, its member firms and the affiliates of Deloitte & Touche LLP, Deloitte Touche Tohmatsu and its member finns. Fraud, error and illegal acts If items of the following nature come to our attention, and in our judgment need to be repOltecl to those charged with governance, we will report them directly to the Executive Committee: 1. Any fraud that involves management; 2. Any fraud (whether caused by management or other employees) of which we become aware that has resulted or could result in a non-trivial misstatement of the financial statements; 3. Any fraud involving employees who have significant roles in internal control; 4. Uncorrected misstatements aggregated by us during the audit that were determined by management to be immaterial, both individually and in the aggregate, to the financial statements taken as a whole; 5. Questions regarding the honesty and integrity of management; 6. Matters that may cause future financial statements to be materially misstated; 7. Significant misstatements resulting from error that were corrected by management; 8. Significant weaknesses in internal control; and, 9. Related party transactions that are not in the normal course of operations and which involve significant judgments made by management concerning measurement or disclosure. We will inform the appropriate level of management of the City and determine that the Executive Committee is adequately informed with respect to illegal acts that have been detected or have otherwise come to our attention in the course of our audit, unless the illegal acts are clearly inconsequential. We will inform the appropriate level of management where we have identified a misstatement resulting from an error, other than a trivial error. The matters communicated will be those that we identify during the course of our audit. Our ,mdit would not identify all matters that may be of interest to management in discharging its responsibilities. Communication with the appropriate level of authority in the City's management ancl with those charged with governance will be determined by the type and significance of the matter to be communicated. Appendix D Circumstances affecting timing and fee estimate The Corporation of the City of Pickering December 31, 2007 47 The fees quoted for the audit are based on certain assumptions. Circumstances may arise during the engagement that may significantly affect the targeted completion dates and our fee estimate. As a result, additional fees may be necessary. Such circumstances include, but are not limited to, the following: Audit facilitation 1. Changes to the timing of the engagement at the City's request. Changes to the timing of the engagement usually require reassignment of personnel used by Deloitte in the performance of services hereunder. However, because it is often difficult to reassign individuals to other engagements, Deloitte may incur significant unanticipated costs. 2. All audit schedules are not (a) provided by the City on the date requested, (b) completed in a format acceptable to Deloitte, (c) mathematically correct, or (d) in agreement with the appropriate City records (e.g., general ledger accounts). Deloitte will provide the City with a separate listing of required schedules, information requests, and the dates such items are needed. 3. Significant delays in responding to our requests for information such as reconciling variances or providing requested supporting documentation (e.g., invoices, contracts, and other documents). 4. Deterioration in the quality of the City's accounting records during the current year engagement in comparison with the prior-year engagement. 5. A completed trial balance, referenced to the supporting analyses, schedules and financial statements, is not provided timely by the City. 6. Draft financial statements with appropriate supporting documentation are not prepared accurately and timely by the City's personnel. 7. Electronic files in an appropriate format and containing the information requested are not provided by the City on the date requested for our use in performing file interrogation. Deloitte will provide the City with a separate listing of the required files and the dates the files are needed. Significant Issues or Changes 8. Significant weaknesses are identified in the City's internal control that result in the expansion of our audit procedures. 9. A significant level of proposed audit adjustments is identified during our audit. 10. A significant number of drafts of the financial statements are submitted for our review or we identify a significant level of deficiencies in the draft financial statements. 11. Significant new issues or changes arise as follows: a. New accounting issues. b. Changes in accounting policies or practices from those used in prior years. c. Events or transactions not contemplated in our budgets. d. Changes in the City's financial reporting process or IT systems. e. Changes in the City's accounting personnel, their responsibilities, or their availability. f. Changes in auditing standards. g. Change in the City's use of specialists or the specialists or their work product does not meet the qualifications required by Canadian GAAS for our reliance upon their work. 12. Changes in audit scope caused by events that are beyond our control. 48 Appendix E Standard terms and conditions The Corporation of the City of Pickering December 31, 2007 The following general business terms (the "Terms") apply to the engagement except as otherwise provided in the specific engagement letter agreement (the "engagement letter") between Deloitte & Touche LLP ("Deloitte") and City of Pickering (the "Client") to which these Terms are attached. 1. Timely performance - Deloitte will not be liable for failures or delays in performance that arise from causes beyond Deloitte's control, including the untimely performance by the Client of its obligations as set out in the engagement letter. 2. Right to terminate services - If the Client terminates the engagement or requests that Deloitte resign from the engagement prior to its completion, the Client will pay for time and expenses incurred by Deloitte up to the termination or resignation date together with reasonable time and expenses incurred to bring the services to a close in a prompt and orderly manner. Deloitte will not be responsible for any loss, cost or expense resulting from such termination or resignation. Should the Client not fulfill its obligations set out herein or in the engagement letter, and in the absence of rectification by the Client within thirty (30) days of notification in writing by Deloitte, upon written notification Deloitte may terminate its services immediately and will not be responsible for any loss, cost or expense resulting from such early termination. 3. Fees and taxes - Any fee estimates take into account the agreed-upon level of preparation and assistance from Client personnel. Deloitte undertakes to advise management of the Client on a timely basis should this preparation and assistance not be provided or should any other circumstances arise which cause actual time to exceed that estimate. The Client is responsible for the payment of any applicable federal, provincial or other goods and services or sales taxes, or any other taxes or duties, in connection with the services provided by Deloitte. 4. Expenses - In addition to professional fees, the Client will reimburse Deloitte for its reasonable out of pocket expenses including travel, meals and hotels incurred in connection with this engagement. 5. Billing - Invoices will be rendered periodically as agreed in advance. All invoices shall be due and payable when rendered. Interest shall be calculated at a simple daily rate of 0.0493% (equivalent to 18% per annum). Interest shall be charged and payable at this rate on any part of an invoice which remains unpaid from thirty (30) days after the invoice date to the date on which the outstanding invoice is paid. To the extent that as part of the services to be performed by Deloitte as described in the engagement letter, Deloitte personnel are required to perform the services in the United States of America ("US Business"), the Client and Deloitte agree to assign performance of the US Business to Deloitte Canada LLP, an affiliate of Deloitte All services performed by Deloitte Canada LLP shall be performed under the direction of Deloitte which shall remain responsible to the Client for such services. Deloitte Canada LLP shall invoice the Client with respect to the US Business and Deloitte will invoice for services performed in Canada ("Canadian Business"). Payment far US Business and/or Canadian Business can be settled with one payment to Delaitte. 6. Governing law - The engagement will be governed by the laws of the Province where Deloitte's principal office performing the engagement is located and all disputes related to the engagement shall be subject to the exclusive jurisdiction of the courts of such Province. Appendix E 49 7. Working papers - All working papers, files and other internal materials created or produced by Deloitte related to the engagement are the property of Deloitte. In the event that Deloitte is requested by the Client or required by subpoena or other legal process to produce its files related to this engagement in proceedings to which Deloitte is not a party, the Client will reimburse Deloitte for its professional time and expenses, including legal fees, incurred in dealing with such matters. Deloitte will not return or provide records or information obtained in the course of the engagement to the Client if it is illegal to do so or if Deloitte is requested to withhold the records or information by law enforcement or other public or regulatory authorities (regardless of whether the engagement has been terminated). 8. Privacy - Deloitte and the Client acknowledge and agree that, during the course of this engagement, Deloitte may collect personal information about identifiable individuals ("Personal Information"), either from the Client or from third parties. The Client and Deloitte agree that Deloitte will collect, use and disclose Personal Information on behalf of the Client solely for purposes related to completing this engagement, providing services to the Client, and in a manner consistent with section 10 below. Deloitte shall not collect, use and disclose such Personal Information for Deloitte's own behalf or for its own purposes. 9. Third parties - Deloitte's engagement is not planned or conducted in contemplation of or for the purpose of reliance by any third party (other than the Client and any party to whom Deloitte's audit report is addressed) or with respect to any specific transaction. Therefore, items of possible interest to a third party will not be addressed and matters may exist that would be assessed differently by a third party, possibly in connection with a specific transaction. 10. Confidentiality - To the extent that, in connection with this engagement, Deloitte comes into possession of any proprietary or confidential information of the Client, (including Personal Information as defined in section 8 above), Deloitte will not disclose such information to any third party without the Client's consent, except: (a) as may be required or permitted by legal authority, the rules of professional conduct/code of ethics. (b) to the extent that such information shall have otherwise become publicly available. Except as instructed otherwise in writing, each party may assume that the other approves of properly addressed fax, e-mail (including e-mail exchanged via internet media) and voice mail communication of both sensitive and non-sensitive documents and other communications concerning this engagement, as well as other means of communication used or accepted by the other. 11. Proportionate liability - The Client and Deloitte acknowledge where the audit is conducted pursuant to a statute governing the Client that contains proportionate liability provisions that apply to an auditor, such as the Canada Business Corporations Act, the terms of the statute shall apply to this engagement. In the event that the Client and Deloitte are not subject to such statutory provisions regarding proportionate liability, the Client agrees that in any action, claim, loss or damage arising out of the engagement, Deloitte's liability will be several and not joint and several and the Client may only claim payment from Deloitte of Deloitte' s proportionate share of the total liability based on the degree of fault of Deloitte as finally determined by a court of competent jurisdiction. 12. Client misrepresentation - Deloitte shall not be liable to the Client, and the Client releases Deloitte, for all liabilities, claims, damages, costs, charges and expenses incurred or suffered by the Client related to or in any way associated with the engagement that arise from or are based on any deliberate misstatement or omission in any material information or representation provided by or approved by any member of management of the Client, officer of the Client or member of the council of the Client. 13. Survival of terms - The agreements and undertakings of the Client contained in the engagement letter, together with the appendices to the engagement letter including these Terms, will survive the completion or termination of this engagement. REPORT TO EXECUTIVE COMMITTEE Report Number: CS 50-07 5 0 Date: Novembl9r 12, 2007 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Response to Executivl3 Committee Requests for Information with Respect to the 2006 Audit Recommendation: That Report CS 50-07 of the Director, Corporate Services & Treasurer re!~arding the Response to Executive Committee Requests for Information with Respect to the 2006 Audit be received for information. Executive Summary: At the Executive Committee meeting of Septembl3r 10, 2007 when discussing Report CS 29-07 on the results of the 2006 Audit, several questions were put to staff. Discussion took. place and staff were requested to provide further information. That information can be found in the attachments to this report. Financial Implications: None Sustainability Implications: implications. This rl3port does not contain any sustainability Background: As mentioned above this report and its attachments are in response to questions raised at a recent meeting of the Executive Committee. Rather than rewrite the response prepared by the respective Managers in report format it was felt most expedient just to attach the information they prepared. During the review and discussion of the management letter prepared by Deloitte & Touche, a number of questions/concerns were raised with respect to the Information Technology comments included in the letter. The responses to these questions/concerns raised have been provided by the Manager, Information Technology in Attachment 1. Further during the review of the 2006 draft Financial Statements presented, questions arose with respect to the tax write-offs, specifically the write-off related to OPG, and general government accounts for purchased services. neport CS 50-07 Date; November 12; 2007 Subject: Response to the Executive Committee Requests for Information with Respect to the 2006 Audit Page 2 51 Attachment 2 provides a summary of the budget and actuals for the General Government category presented in the financial statements. Attachment 3 provides a general explanation of the tax write-off account and what makes up the balance. A brief summary of the nature of the tax write-off related to OPG has also been provided. In addition Report CS 52-07 is also being submitted which provides greater detail and status of the OPG tax write-off. Attachment 4 provides the detail of what makes up the General Government Purchased Services account and I believe is self-explanatory. Attachments: 1. Memorandum dated October 15, 2007 from the Manager, Information Technology 2. General Government Expenditures per Financial Statements, December 31, 2006 3. Tax Write-Offs 2134-0000-0000 4. General Government Purchased Services for 2006 Prepared By: ~~ ~it i:.P ' :~ . risine Senior Manager, Accounting Services Approved I Endorsed By: ,x~,.~,."",.~"...... .... ~ "... "..,,_,..,_,. ':'... .,,"';;,r'o.......'....... .,,' ...."....,. ,..'..,....,. .....v.-......"."........',..".....".....".. c._ ""_"'~~~'.-" ~ ..".."...... "!1''''''''' '""., ~' -t? '~.,-~~"" .... . ~ " . ,~".,"." . '/",.... , " Gillis A. Paterson Director, Corporate Services & Treasurer GAP:vw Attachments Copy: Chief Administrative Officer 52 ATTACHMENT#.L_ TO REPORT#,~tD~fn CORPORATE SERVICES DEPARTMENT INFORMATION TECHNOLOGY SECTION MEMORANDUM October 15, 2007 To: Gillis A. Paterson Director, Corporate SeNices & Treasurer From: Jon G. Storms Manager, Information Technology Subject: Response to September 10, 2007 Audit Minutes This memorandum attempts to address the questions that Members of Council put forth regarding Information Technology (IT). The responses have been grouped by subject matter. Disaster Recoverv/Business Continuit,~ First, let us identify what IT has accompHshed. A fire suppressant system was installed within the computer room in December 2005. Weekly data backup tapes are bein!) stored offsite at the Recreation Complex, and month-end tapes are stored at Claremont. In 2004, the City contracted Deloitte to perform a corporate study to identify the computer systems that were deemed to be the most critical to the City. This was pha.se one of a proposed three-phase Disaster Recovery/Business Continuity (DRBC) project. Thl3 systems were identified from the most critical to those of lesser importance. The list was provided to Council. IT budgeted for phase two of the DRBC project. The amount budgeted was about $25,000. This was the same amount budgeted for phase one, and was the amount provided to IT by Deloitte. The budget amount was approved, but when the time came to start the project, Deloitte had tripled the project cost for phase two. Based on thl3 adjusted cost for phase two, and the projected cost of phase three, it was determined that the project management costs alone would be approximately $170,000. The results from phase one of the DRBC project indicated that the most critical system within the City was the telephone system, followed by the email system. Telcorps provided the City with a cost of $40,000 to have a refurbished NEC PBX ready for installation should a disaster strike the computer room - the most secure and protected room within the corporation. Councillor Pickles deemed the cost excessive and the remaining councillors agreed. The number one critical system identified within the City was deemed not to have a value of $40,000. That, plus the revised phase two cost from Deloitte, ended the effort to implement a formal DRBC plan for IT. I must fully concur with senior managemHnt that the cost to implement a corporate DRBC plan is currently prohibitive. The cost of just developing the plan for IT was deemed to ~Qgpomm to SQPtQmbQf 101 2007 Audit MinutQg OCtOb8f 15, 2007 Page 2 53 be too expensive. Costs for standby equipment and possible offsite agreements would have pushed the final cost much higher. During the previous three years, IT has identified the need for a Storage Area Network (SAN), which has been deferred each year. However, costs have decreased at the same time. A SAN system would replace tape backups, and provide a further measure of DRBC. The SAN has been cut or deferred each year. The SAN will be resubmitted for the 2008 budget. Tapes are proving undependable when attempting to recover data. Phase one of the SAN project would have nightly backups written onto disk located within the computer room. Weekly and monthly tape backups would still occur if only phase one were implemented. Phase two of the project would have a second SAN system located at the Recreation Complex. The two systems would be connected by an existing fibre connection. Phase two would eliminate the need for weekly backups, as the two data storage systems would virtually always be synchronized. Only the monthly tape backups that would be stored at Claremont would still be required. Once phase one and phase two were implemented, absolutely no data would be lost should a disaster strike the computer room. The estimated cost for both phases is $120,000, and once again, will be included within the 2008 IT budget submissions. The question has previously been asked why the City cannot develop reciprocal agreements with other municipalities to use their resources should a disaster strike. All municipalities are in the same position as Pickering. The City has just enough resources to accommodate its own requirements. During the night, backups are being performed; therefore, the City's data could not be offloaded and another municipality's data loaded. The 2007 IT budget submissions also included the following DRBC related items. All were cut or deferred. They will be resubmitted within the 2008 budget. Virtual software designed to eliminate two-thirds of the City's physical servers. The software, if installed on the remaining servers, would have resulted in fewer servers having to be restored should a disaster strike, and the remaining servers could have been restored much quicker. The cost was about $19,000. The O'Brien meeting room within the Recreation Complex was identified as a backup computer site should the computer room or a section of the Civic Complex be damaged and become unusable. The target was to have the room fully wired to allow for the quick insertion of both servers and PCs for employee usage. The network switches recently replaced within the Civic Complex were to be reused within the O'Brien room. The cost to accommodate the additional electrical load for the servers and PCs was approximately $15,000. The budget item will be resubmitted within the 2008 IT budget. The item previously appeared within O&ES's budget. A proposal was put forth to connect the four electrical closets within the Civic Complex to the diesel generator, along with a number of electrical sockets used by PCs. Currently, if a power failure occurred within the City, only certain PCs within IT would c_,.~",^~~~.___,~<~.~~_,~~~"",,u~_~:,~,_.,.........~~,~;..:..,.;';~';;:";"..o.;,--.-~~ ""';j-~_ ~~;;",~;,lIC~~""",iL "~",,":'.."' ' '., ,', ~_.', "~"',--.. '"'",~..~ ,'.~,",,.,'.~, .',"" - '.' Response to September 10, 2007 Audit Minutes Octobl3r 15, 2007 54 Page 3 function. The 2007 budget submission was in O&ES's budget but will be resubmitted in IT's 2008 Capital Budget at an estimated cost of $60,000. Computer Security First, let it be known that there has yet to be a security breach of the network. Suggestions and statements have been expressed in the past by both elected officials and employees, but after investigations were completed, the supposed infractions were people-based rather than network related. IT has developed a very comprehensive PC Policy that incorporates a numbHr of security issues. All employees received mandatory training on the policy within tlhe past two years, and every two months a course is provided by IT for new staff, alon!~ with thosls staff who require a refresher. The last refresher course was provided during the week of September 17. The next course will be offered in November. Each new employee who has been given access to the network is provided with a copy of the policy by Human Resources. One of the most fundamental requirements for computer networks to be secure involves the cyclical changing of passwords. Within the City, password changes are forced every 30 days. The only network accounts that do not change their passwords are Members of Council. In 2005, IT contracted the services of a sBcurity firm to test both the internal and external security measures in place. Attempts to remotely access the network by means of 'hacking' failed; thus, demonstrating the quality of the security systems. Tho attempt to breach the network from within was succHssful. Although employees had just completed the mandatory seminar involving the PC Policy, and the fact that employees were clearly warned that passwords were not to be shared, a number of employees freely gave out their passwords by email through a method called 'phishing.' The security firm was ablEl to compromise the network as a result. Although IT knew the identity of the employees, HR directed that they could not be approach for reasons of confidentiality; therefore, no disciplinary action was taken. The only known method of stopping successful 'phishing' attacks is by implementin9 login tokens to all users accessing the nEltwork. IT submitted a 2007 budget request o;f approximately $50,000 to purchase these tokens. The amount was reduced to phase in the project. In 2007, 47 tokens have been purchased, at a cost of approximately $11,000and IT is in the process of implElmenting these; however, 47 is not enough to protect against network attacks. Login tokens work by displaying a 4 - 8 number, which changes every 60 seconds. Before a person can log into the network, the person must enter a fixed password, plus the current number being displayed on the token. Even if the password were shared, by the time thE~ other person tried to access it, the login-token number would have changed. It needs to be stated that the bulk of computer networks still rely on passwords to access the network, the same method as is currently beinQl used within the City. To be 100c10 effective, each person accessing the network would Response to September 10, 2007 Audit Minutes October 15, 2007 Page 4 55 require a token. The current number of network accounts is approximately 320. These tokens, less than 47purchased, will cost approximately $65,300. Before employees are permitted to log into the network, they must acknowledge a security message that is displayed on their monitor. Finally, the services of Net Cyclops are employed on a monthly basis to review the log files of the computer network firewall. Four of the main servers within the computer rooms are further protected by Intrusion Detection Systems (IDS). Before December 31, 2007, the number of IDS protected servers will be six out of a total of 32 servers. However, there is not a need to place IDS on the non-critical servers. Best Practices While the offer from P. Jesty of Deloitte is most certainly appreciated, it is not known how IT would implement these 'best practices.' IT does not have sufficient resources to implement non-expensive DRBC initiatives. The above statements are not to be misconstrued. IT is fully aware of the City's financial predicament, and is also fully aware that it now receives its fair share of the available resources. Nonetheless, it is difficult to implement 'best practices' under such circumstance. I believe the development of an IT Strategic Plan would be of benefit to fully discern the requirements and expectations of the Corporation. IT attempted to develop such a plan in both 1999 and 2000, but although approved by the Information Technology Steering Committee (ITSC), the plans did not have the support of Council during budget allocations. Many IT installations have such a plan, and Ajax just had one developed. However, the cost for the consultants to develop the plan was approximately $85,000. It resulted in, among other things, additional staff for IT. But once again, the issue of Pickering's financial constraints must be realized. Security Policies It is readily acknowledged that with the exception of the PC Policy, written security policies have not been developed. Deloitte makes reference to 'password management.' This subject is already covered within the PC Policy. A policy regarding the characteristics of the password is not required, as the server's operating system enforces the password structure, that being 8 characters, etc. The PC Policy and the security- login message clearly state that all data residing on the network is the property of the City. For those security issues not addressed, IT simply does not have the resources to develop such policies. With the security policy and procedures currently in place, perhaps the development of still more corporate polices would not be the best use of IT's limited resources. Server System LOQS The log files are being captured with the files being saved to DVD and then deleted from thA SArvers due to disk snace constraints. The files are not beina reviewed. As a areat Response to September 10, 2007 Audit Minutes OctobHr 15, 2007 5 6 Page 5 deal of data is being captured within tht9 log files, it would be very time consuming to review the files, and certainly not a goocl utilization of IT's limited resources. With the automated security procedures in place, there is limited need to constantly review the logs. Furthermore, the intent of installin!~ the software was to search for activities if we suspected a problem, not to continually monitor the contents of the logs. With the resources available, we simply could not do anything else. However, I would suggest that if an additional resource were obtained, the City could make better use of it elsewhere in IT. Chanqe Manaqement - Application Sv!;tems With the exception of the Corporate Customer Care Tracking System (CCCTS), and a few smaller systems, all application systl3ms in use within the City are purchased. The changes are fully tested by the vendors before reaching the City. The City is then sent ".exe" files that are self loading. The changes are first installed within test databases, and in fact, are tested by City staff prior to the changes being installed in the production databases. Changes to the CCCTS is once again fully tested within the test databasi9 environment by IT, and then by staff prior to the changes being implemented into production. To the best of my recollection, no problems have ever been experienced that were the result of inadequate testing. Chanqe Manaqement - Computer Room Servers This is where difficulties are sometime experienced. IT does not have enough servers to create 'test' servers where new softwarH installs can be tested. Even if such servers were available, the lack of staff presents itself again. Where problems have been experienced, and they have mainly been associated with the Canaveral servers, IT has quickly secured the services of specializHd consultants to rectify the problems that wem encountered. Therefore, any problems that have been experienced have been minimized or rectified. Summary While the issues identified within Oeloitte's audit are perhaps legitimate for larger IT environments, they are not for Pickerin~l, especially if budgets and staffing levels am considered. Council is probably unaWarE! that the City is still using PCs that schools wil!1 not accept as donations because they ana too obsolete. If the City cannot afford to fully maintain a basic element such as the currency of pes, how can IT be expected to positively respond to the list of concerns that have been expressed. {;l"lC'trl 'Hif':,~"" 'j j'" f'\\.niVltl'. #-:-6...,_ '~~':"'A~......j /',"-,-',,(11 i"i- ~\.~;~\,,__q\! 11'~ _k~~,';)dJ (j 57 GENERAL GOVERNMENT EXPENDITURES per FINANCIAL STATEMENTS December 31, 2006 Budget Actual Mayor, Council & Council Support 886,182 783,418 General Government 3,137,378 3,442,830 Administration 2,423,219 2,283,099 Corporate Services (1) 4,675,811 4,281,248 Municipal Building 462,036 424,911 City Property Maintenance 532,605 330,274 12,117,231 11,545,781 Tax Write-off - OPG Assessment Appeals (2) 4,238,294 PSAB - Decrease in Non-Financial Asset (229,227) } Adjustments for PSAB - Increase in Post Employment Benefits 10,700 } Financial Statement PSAB - Decrease in WSIB benefit Liabilities (262,567) } Presentation only General Government per Financial Statements 12,117,231 15,302,981 (1) excludes By-law $578,582 & Animal Control $316,471 as reported under Protection to Persons & Property instead of General Government (2) The City of Pickering with the other two nuclear host municipalities (Clarington & Kincardine) filed an assessment appeal in 1999 regarding OPG's nuclear facilities. The appeal was filed claiming that the assessments for these properties are too low. MPAC increased the assessment value of these properties with the understanding that there would still be some adjustment downward for the final assessed value. The City was required to tax on the higher assessment value per the returned tax roll from MPAC. Each year a portion of the City's share of taxes for the property under appeal were transferred to the Contingency Reserve to offset the impact of the final adjustment downward when the appeal was eventually settled with OPG, These transfers commenced in 2001 and continued each year through to 2005 for a total amount of approximately $9.3 million at the end of 2005 in the Contingecy Reserve, With the settlement of the appeal, the write-off represents the property tax adjustment up to and including 2006. This expense was required to be recorded in the City's books in 2006 in conformance with Generally Accepted Accounting Principles (GAAP), The corresponding transfer from the Contingency Reserve to the Current Fund was also recorded to offset this expense. . ..- -... .-....., ",.~_.~""-~~,,,..~-"',"--"""_..,~,,-,...~ ,.....,'_."__..,~-M,.;......~~'I,;i_""-..1;}..'~~!!IIl!r.l!O'$!Iffl'...."_T.- II 58 A TTACHMEI\rr # _TO REPORT # ('"~':;(').. D 7 Tax Write-ofts - 2134.0000.0000 Property owners in Ontario have the right to appeal the assessment value on their property. Assessment appeals arise from taxpayers believing their assessment value is too high, clerical errors by Municipal Property Assessment Corporation (MPAC) or a reduction in assessment from demolitions due to fire. Tax write-off expense represents the City's share of the reduction in taxes as a result of successful assessment appeals related to Minutes of Settlement from Requests for Reconsideration to MPAC, Assessment Review Board Decisions and Council approved S. 357's & 358'8. Taxable Properties 240,004 Payment in Lieu Properties (taxes on Federally, Provincially or Regionally owned property) 159,580 OPG Assessment Appeal 4,238,294 (1) 4,637,878 (1) The City of Pickering with the other two nuclear host municipalities (Clarington & Kincardine) filed an assessment appeal in 1999 regarding OPG's nuclear facilities. The appeal was filed claiming that the assessments for these properties are too low. MPAC increased the assessment value of these properties with the understanding that there would still be some adjustment downward for the final assessed value. The City was required to tax on the higher assessment value per the returned tax roll from MPAC. Each year a portion of the City's share of taxes for the property under appeal were transferred to the Contingency Reserve to offset the impact of the final adjustment downward when the appeal was eventually settled with OPG. These transfers commenced in 2001 and continued each year through to 2005 for a total amount of approximately $9.3 million at the end of 2005 in the Contingecy Resarve. With the settlement of the appeal, the write-off represents the property tax adjustment up to and including 2006. This expense was required to be recorded in the City's books in 2006 in conformance with Generally Accepted Accounting Principles (GAAP). The corresponding transfer from the Contingency Reserve to the Current Fund was also recorded to offset this expense. ~ . 1 ;,j_.tt.", #1. s ..50 "\)7 59 Continuing Studies Budget Actual Reserve (see Note) 20,000 14,832 30,000 7,209 15,000 2,150 12,850 35,000 20,550 14,450 100,000 41,141 40,000 40,000 200,000 45,239 135,000 115,000 77,304 555,000 208,426 202,300 General Government Purchased Services for 2006 Strategic Planning Sessions Unanticipated needs Development Charge Appeal Compensation Study Litigation Matters Seaton Fin Impact Assmt Seaton - Provincial & OMS Matters Arbitration Hearings Purchased Services (2126.2392) Note Quite often, consulting projects are not completed within a calendar year and may continue into future budget years due to timing or complexity of issue involved. As a result, a Continuing Studies Reserve was established in order that the unspent funds for an incomplete consulting project could be carried over to the following year to allow completion of the project. The carryover column represents an estimate of the unspent funds required to complete the project and are transferred to the Continuing Studies Reserve. The amount then shows in the following year budget funded by a transfer from the Continuing Studies Reserve so that there is no impact on future year tax levies. CiuJ 0# REPORT TO EXECUTIVE COMMITTEE Report Number: CS 52-07 Date: Novembl9r 12, 2007 From: Gillis A. Paterson Director, Corporate Se,rvices & Treasurer Subject: Summary of Internal Audit Hesults to Date Recommendation: That Report CS 52-07 of the Director, Corporate Services & Treasurer regarding summary of internal audit results to date be received for information. Executive Summary: This report summarizes the Internal Audit results over the past 21 months since the position ojr Manager, Internal Audit & Control was created and filled. During this period several investigations and audits were completed and the results reported to senior management. In general, management's actions in response to Internal Audit's recommendations are either fully or partially (in progress) completed. Financial Implications: There are no financial implications associated with this report. Sustainability Implications: with this report. There are no sustainability implications associated Background: In early 2006, the position of Manager, Internal Audit & Control was filled. With the creation of this new position, the City is now able to have a dedicated internal audit function to evaluate the adequacy and effectiveness of internal controls across the City. The Manager, Internal Audit & Control, with the assistance of the Audit Analyst, has completed a number of investigations and audits. A summary of the audit results to date is provided for your information. An audit of the Clerk's Division, Animal Services Section is also currently underway. In addition, the Manager, Internal Audit & Control continues to provide advice and assistance to the departments, including Corporate Services, in developing policies and procedures and implementing Internal Audit recommendations. Report CS 52-07 November 12,2007 Subject: Summary of Internal Audit Results to Date Page 2 61 Summary Internal Audit Results To Date East Shore Community Centre - Seniors' Activity Centre Theft On March 7, 2006, a theft at the Seniors' Activity Centre was reported to City staff. The purpose of Internal Audit's investigation was to determine, if possible, how the theft occurred and to make recommendations to improve the physical security at the Seniors' Activity Centre and mitigate the risk of future losses. Since there was no forced entry or video surveillance cameras, Internal Audit was unable to determine who the thief was or how the individua/(s) gained access to the Seniors' Centre office. Internal Audit made several recommendations to improve the security at the Seniors' Centre and East Shore Community Centre which were implemented by City management. Actions taken included reviewing security responsibilities and procedures with the South Pickering Seniors Club executive and facility security staff, changing the exterior and interior locks and alarm codes and restricting the number of keys issued to the executive members of the South Pickering Seniors Club. Break-In and Theft - Wellness Centre Spa, Pickerinq Recreation Complex On the evening of Wednesday, April 19, 2006, a break-in and theft occurred at the Wellness Centre Spa, which is located on the upper level of the Pickering Recreation Complex. The purpose of Internal Audit's investigation was to review the facts and, if necessary, make recommendations to improve the physical security at the facility and the Wellness Centre Spa. Durham Regional Police also conducted its own investigation and a suspect was subsequently charged for the break-in and theft. As a result of the Internal Audit's investigation, City management increased the signage of video surveillance at the facility to deter future break-ins, reinforced security responsibilities and procedures with all facility staff and arranged for a safe to be used by Wellness Centre Spa staff to safeguard any cash. Petty Cash and Chanqe Floats City-Wide Audit In late 2005 and early 2006, Corporate Services Department's Audit Analyst performed a city-wide audit of petty cash and change floats. Facilities visited included the Pickering Recreation Complex, Don Beer Arena, Dunbarton Indoor Pool, East Shore Community Centre, Pickering Village Museum and the Pickering Public Library (all branches). The primary objective of the audit was to verify the accuracy of the records pertaining to petty cash and change floats and to ensure these funds were adequately safeguarded. During the audit, a number of observations were also made regarding the collection and handling of cash. Report CS 52-07 November 12, 2007 Subject: 62 Summary of Internal Audit Hesults to Date Page 3 Internal audit identified a number of minor discrepancies between petty cash and change float records and actual cash. To ensure that funds are maintained at their issued and authorized amount at all times, the audit recommended that management staff verify the funds on a quarterly basis. Several other recommendations were also made to improve the accountability and physical security of the various funds. City management has since implemented these recommendations. During the audit, several control weaknesses were identified regarding the Pickering Public Library's cash collection and handling procedures. Library management has addressed many of Internal Audit's concerns at the Central Library by installing a cash register and safe, reducing the number of cash floats, depositing cash receipts intact and increasing the frequency of the bank deposits. Pickerinq Recreation Complex Cash Receipts and Revenues Audit In August 2007, Internal Audit completed its audit of the Pickering Recreation Complex. City management is in full agreement with the report recommendations and is in the process of implementing their action plan. In January 2009, Internal Audit will be following up on the status of management's action plan. The audit focused on assessing the controls at the Recreation Complex related to the receiving, handling, safeguarding and depositing of cash receipts and related recording of revenues. This is a high risk area as annual revenues from the facility exceed $3.5 million, and involve many programs and a large number of staff. To reduce the risks inherent with cash handling, City management has implemented a number of important controls at the Rec:reation Complex. These controls addressed many of the key cash handling risks; however, the audit identified several additional opportunities where controls needed to be strengthened. In particular, segregation of duties could be improved in the areas of cash handling and accounts receivable. Strong separation of duties greatly reduces the risk of errors or fraud going undetected. If duties cannot be fully segregated, management needs to establish adequate mitigating or compensating controls to reduce the risks. To ensure that proper cash handling procedures are performed, the audit recommended that regular supervisory spot check procedures be performed. Written procedures were also recommended in the areas of cash handling, collection and write off of accounts receivable, processing of refunds and customer account adjustments. A variety of documents are kE~pt at the Pickering Recreation Complex, which are financial in nature or contain personal information. Although management have taken steps to protect this information, controls could be stronger in this area. In particular, the audit recommended that a document retention schedule be developed and that proper control of keys to desks and filing cabinets be exercised by staff at all times. Report CS 52-07 November 12, 2007 Subject: Summary of Internal Audit Results to Date Page 4 6 3 In closing, the investigations and audits performed by Internal Audit to date have provided senior management with important information on the adequacy and effectiveness of the City's internal controls. This in turn has enabled senior management to take corrective action(s) where necessary. Attachments: None Prepared By: Approved I Endorsed By: ~17~ ames Halsall Manager, Internal Audit & Control ~_..,... ~_,~~~;V~'-"h Gillis A. Paterson Director, Corporate Services & Treasurer JH/vw Copy: Chief Administrative Officer // REPORT TO EXECUTIVE COMMITTEE Report Number: CS 53-07 Date: November 12, 2007 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2008 - 2010 Internal Audit Work Plan Recommendation: That Report CS 53-07 from the Director, Corporate Services & Treasurer re~larding the 2008 - 2010 Internal Audit Work Plan be approved. Executive Summary: This report details the 2008 - 2010 Internal Audit Work Plan which provides a summary and brief description of the Internal Audit projects to be undertaken for the next three years. Financial Implications: There are no financial implications associated with this report. Sustainability Implications: There am no sustainability implications associated with this report. Background: Purpose of an Internal Audit Work Plan The purpose of a formal Internal Audit Work Plan is to provide a disciplined approach to the identification of potential audiit projects. Formal planning has several benefits. It focuses scarce resources on priority or high-risk areas. It provides the basis for involvement of senior management in the audit process. It ensures that all business units (and associated risks) are considered for audit attention. It serves as a standard against which to measure the performance of the Internal Audit function. Repod CS 59-07 November 12, 2007 Subject: 2008 - 2010 Internal Audit Work Plan Page 2 65 Furthermore, establishing a risk-based Internal Audit Work Plan to prioritize audits is considered a "best practice" within the audit profession and is specifically referred to in the standards promoted by the Institute of Internal Auditors. A multi-year plan is also recommended to ensure sufficient internal audit coverage. 2008 - 2010 Internal Audit Work Plan A risk assessment methodology, which included input from the Chief Administrative Officer and Director, Corporate Services and Treasurer, was used in selecting areas of the City for inclusion in the 2008 - 2010 Internal Audit Work Plan. Areas selected have a risk rating of either high or above average risk. Specifically, the Work Plan includes: - 2 high risk areas; and - 12 above average risk areas. Attachment 1 is a summary and brief description of the audit projects to be undertaken over the next three years. The scope and specific objectives of these projects will be determined during the planning stages of each audit. Areas excluded from the Work Plan due to lower risk ratings are listed in Attachment 2. In addition, add hoc and urgent requests may arise from meetings of the Executive Committee and senior City staff. The Work Plan provides for approximately 10 percent of available internal audit staff time to meet these requests. Although the Work Plan is a multi-year plan, the risk assessment and Work Plan will be updated annually as risks and management priorities may change. In the event that audit projects are completed earlier than expected, projects planned for 2009 will be moved forward to 2008. The audits are to be completed by the Manager, Internal Audit and Control with the assistance of an Audit Analyst. Risk Assessment Process It is not possible to audit all of the City's operations during a twelve-month period. Determining which areas to audit and allocating audit resources to those areas is fundamental to an effective audit process. In order to assess the relative importance of potential audit entities and to objectively develop the Internal Audit Work Plan, the Manager, Internal Audit & Control conducted a risk assessment of the City's departments and programs in 2007. The purpose of the risk assessment exercise is to ensure that all areas of the City are evaluated from an audit risk perspective using uniform criteria and also to prioritize potential audit projects. The risk assessment process begins by applying the following risk factors against each audit unit. Report CS 53-07 NovembE!r 12, 2007 Subject: 2008 - 2010 Internal Audit Work Plan Page 3 66 Financial Impact (expenditures, revenues) - Liquidity of Assets - Potential for Liabilities (penalties, litigation) - Political Exposure/Adverse Publicity - Complexity - Last Audited - Audit Requests (from CAO, senior management) In considering the risk assessment, thl9 risk factors were not evaluated equally as certain of them were viewed to be of more significance than others. Consequently, the process involved the determination of a specific weighting to each of the factors. The results of Internal Audit's City-Wide risk assessment are documented in Attachment 3. Attachments: 1. 2008 - 2010 Internal Audit Work Plan 2. Areas Not Included in the Internal Audit Work Plan 3. 2007 City-Wide Risk Analysis Prepared By: Approved I Endorsed By: ~7~ ~ames Halsall Manager, Internal Audit & Control ,~ Gillis A. Paterson Director, Corporate Services & Treasurer JH:vw Attachments Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Colfficil ---------..". .--" tt_L TO REPORT#~-l>1 2008 - 2010 Internal Audit Work Plan (Attachment 1) 67 2008 INTERNAL AUDITS Operations & Emerqencv Services Department Operations Centre (Roads and Parks) . The audit will examine the adequacy of administrative and financial controls regarding the purchasing and inventory of roads and parks supplies, materials and equipment (over $1 million of materials is purchased annually). Cash handling procedures for services such as curb cutting and park permits will also be reviewed. The objective of this review is to ensure that these assets are properly protected and that the risk of loss is minimized. Operations Centre (Fleet Operations) . The audit will examine the adequacy of administrative and financial controls regarding the purchasing and inventory of garage supplies, parts and equipment. Processes and controls pertaining to the repair and maintenance of city owned vehicles will also be reviewed. Arenas (Recreation Complex and Don Beer) - The audit will assist management in determining the adequacy and effectiveness of cash handling and related revenue controls at the City's arenas (Recreation Complex and Don Beer) and, if necessary, make recommendations to improve controls. Pickering Village Museum. The audit will assist management in determining the effectiveness of cash handling and expenditure controls at the museum and, if necessary, make recommendations to improve controls. Museum expenditures are budgeted at over $400,000 with expected revenues of $141 ,000. Corporate Services Department Information Technology (IT) . As part of the annual financial statement audit, the external auditor reviews the City's computer processing environment and makes recommendations to senior management where controls need to be enhanced. Past audit recommendations have been made in the areas of logical access rights, Business Continuity and Disaster Recovery planning, IT documentation and change management procedures. The objective of this review will be to determine the status of IT management's actions in response to the external auditor's earlier recommendations. 2008 - 2010 Internal Audit Work Plan 68 (Attachment 1) 2009 INTERNAL AUDITS Operations & Emerqencv Services DHPartment Dunbarton Pool - The audit will assi:3t management in determining the adequacy and effectiveness of cash handling and related revenue controls at the Dunbarton Pool and, if necessary, make recommendations to improve controls. In 2007, over $130,000 in cash receipts are expected to be collected at the facility., Property Engineering - This section is responsible for implementing a si.gnificant portion of the City's capital budget (over $5 million). The audit will evaluate the management of capital projects and administration of construction contracts. Processes for controlling project costs, change orders, contract amendments, progress certificates and the release of Letters of Credit and holdbacks will be reviewed. Planninq & Development Department Planning Section - Over $170,000 ,in planning application fees (Zonin9 By-law amendments, Official Plan amendments, Site Plan Approvals, etc.) are budgeted. The audit will assist management in determining the adequacy and effectiveness of cash handling and related revenue controls regarding these planning application fees and, if necessary, m8lke recommendations to improve controls. Corporate Services Department Finance & Taxation - This section is responsible for the processing and managing of tax billings ($120 million annually), collections and tax adjustments. This audit will examine administrative and financial controls over the accuracy and completeness of tax billings, approval of refunds and the effectiveness of cash handling procedures. Supply & Services (City-Wide and Library) - The processes and controls for procuring goods and services will be reviewed to determine whether procedures are consistent, comply with the purchasing bylaw and policies and procedures, and promote fair and open competition. This review will address processes and procedures from the identifying the need for goods and services through selection of the vendor. 2008 - 2010 Internal Audit Work Plan "" .. -- ..- - (Attachment 1) 69 2010 INTERNAL AUDITS Operations & Emerqencv Services Department Community Centres/Seniors Activity Centre - The audit will assist management in determining the effectiveness of cash handling and related revenue controls at the City's community centres and Seniors Activity Centre and, if necessary, make recommendations to improve controls. Fire Prevention and Suppression - The audit will examine the adequacy of administrative and financial controls over expenditures, revenues and inventories. Total expenditures for Fire Services Division are budgeted at over $10 million while total revenues are expected to be over $250,000. The audit scope will also include an assessment of the fire inspection prevention program. Planninq & Development Department Building Services - The audit will include a review of the administrative, financial and operational procedures with respect to the issuance, collection and reporting of building permit fees ($650,000 budgeted) and the carrying out of inspections. The process for collecting and reporting development charges will also be reviewed. Development Control - This section is responsible for implementing the City's development related capital budget (over $1.5 million budgeted). The audit will evaluate the management of capital projects and administration of construction contracts. Processes for controlling project costs, change orders, contract amendments, progress certificates and the release of Letters of Credit and hold backs will be reviewed. Corporate Services Department Payroll (City-Wide and Library) - Payroll represents the single largest cost (approximately $25 million annually) for the City. The audit will determine whether proper controls are in place to ensure (1) wages and salaries paid are accurate and authorized (2) payroll cheques are not issued to fictitious or terminated employees (3) employees are only paid for hours worked and (4) changes to employee master files are complete, accurate and properly authorized. '~(l\rUMFf\'. ,_~ REPORT ~i..0?' Ii) Areas Not Includled in the Internal Audi'tW~rk Plan-'-' 70 (At~achment 2) The areas listed below are excluded from the Work Plan due to a lower risk rating. Low Risk Administration Department - Administrative Services Corporate Services Department - Print/Mailroom Corporate Services Department - Records Management Operations & Emergency Services - Administration Operations & Emergency Services - Culture & Recreation Administration Operations & Emergency Services - Sustainable Pickering Planning & Development - Heritage Pickering Moderate Risk City Council & Support Administration Department - CustomE~r Care Centre Administration Department - Employment Services & Administration Administration Department - Safety & Employee Development Administration Department - Offiice of Sustainability Administration Department - Le~lal Services Corporate Services Department - Clerk Administration Corporate Services Department - Accounting Services Operations & Emergency Services - Emergency Operation Control Centre Operations & Emergency Services - Storm Water Management Operations & Emergency Services - Environmental Services Operations & Emergency Services - Civic Complex Planning & Development - Administration, Information & Support Services Planning & Development - Committee of Adjustment The areas listed below are excluded from the Work Plan because they have had recent Internal Audit coverage (last 20 months). Pickering Recreation Complex/Progmms (completed) Animal Services Section (fieldwork stage) Clerks Division (planning stage) 1 PROGRAMICA TEGORY 2007 EXPEND Rating 2007 City-Wide Risk Analysis 2007 REVENUE Rating 2007 CAPITAL Rating LIQUIDITY POTENT ASSETS L1AB LAST MGMT COMPLEX SENSITIVITY AUDITED REQUEST (Attachment 3) TOTAL SCORE RISK LEVEL Relative Weights of Factors 15 20 5 5 10 10 15 5 15 100 City Council & Support Administration Department Administrative Services Customer Care Centre Employment Services & Adm. Safety & Employee Development Office of Sustainability Legal Services Total Corporate Services Department Finance & Taxation 872.916 462,593 246,592 612,195 107,537 746,965 262,200 2,438,082 3 2 2 3 2 3 2 22,000 500 22,500 o 70,000 o o o o + Total taxes receivable Accounting Services Payroll Supply & Services Information & Technlogy Clerk Administration Print/Mailroom Records Management By-Law Enforcement Animal Services Total 2,176,243 307,291 1,072,383 493,478 376,123 80,151 624,924 338,942 5,469,535 4 2,674,915 120,000,000 5 o o o o 466,360 2,000 4 5 5 4 2 2 73,700 100 o o 3 2 25,000 493,360 3 2 926,001 110,000 123,784,716 Operations & Emerqency Services Department Operations & Em. Services Admin Emergency Operation Control Centre Fire Supression Fire Prevention Property Engineering Operations Centre - Roads & Parks Operations Centre - Fleet Operations Environmental Services Storm Water Management Sustainable Pickering Sub Total (a) 356,036 163,067 10,317,467 1,926,557 8,466,582 811,253 134,500 22,175,462 2 2 5 5 4 5 3 2 o o 105,000 262,692 15,000 76,350 446,600 14,000 o 2 2 2 35,000 471,436 919,642 2 42,000 4,922,700 65,000 o o 460,000 50,000 6,046,136 o o o o o o o o o o o 2 o o o o 2 2 5 o 2 1 3 5 5 5 5 5 5 3 3 5 3 5 3 3 3 3 3 3 5 5 5 5 3 3 5 5 5 3 3 5 5 3 3 5 5 3 3 3 5 5 5 3 3 3 3 5 5 3 3 5 5 3 5 3 3 5 5 3 5 3 3 3 o 5 5 5 5 5 5 o o o o o o 5 o 5 5 5 3 3 5 5 o 5 5 5 o o o 5 5 5 5 5 5 5 5 5 5 5 5 o o o o 5 5 5 o o o 33 19 31 40 31 36 31 69 33 55 75 56 30 19 16 69 55 19 44 68 66 67 78 58 27 33 20 M L M M M M M A M A A A M L L A A '-J L M l W A' A A H A M ~', Mh L 1--) ~ w ~ V -.J 2007 City-Wide Risk Analysis (Attachment 3) 2007 2007 2007 LIQUIDITY POTENT LAST MGMT TOTAL RISK PROGRAM/CA TEGORY EXPEND Rating REVENUE Rating CAPITAL Rating ASSETS L1AB COMPLEX SENSITIVITY AUDITED REQUEST SCORE LEVEL Relative Weights of Factors 15 20 5 5 10 10 15 5 15 100 Operations & Emerqency Services Department Culture & Rec. Admin 982,824 3 0 0 1 1 1 1 5 0 22 -.J L Programs 2,054,244 4 1,647,032 4 5,000 1 5 3 3 5 1 0 62 tv A Recreation Complex 3,755,768 4 2,180,492 4 420,660 2 5 5 3 5 1 0 67 A Community Centres/Seniors Centre 854,689 3 153,600 2 211,500 2 3 3 1 3 3 5 57 A Junbarton Pool 329,644 2 131,971 2 89,000 '1 3 5 1 3 3 5 57 A Jon Beer Arena 979,051 3 967,500 3 163,000 2 5 5 1 3 3 5 67 A lAuseum 435,427 2 141.330 ~ 116,500 2 3 3 1 3 3 5 54 A "- Civic Complex 431,366 2 3,000 1 262,000 2 1 3 1 1 5 0 29 M Sub Total (b) 9,823,013 5,224,925 1,267,660 Total Op & Em Services 31,998,475 6,144,567 7,313,796 ~!anninq & Develooment Deoartment \dm, Information & Support Services 840,383 3 69,000 1 1 1 1 1 1 5 0 27 M ~Ianning 1,898,891 4 768,192 3 1 5 3 5 5 5 5 81 H 3uilding Services 954,799 3 650,000 3 - 1 5 5 3 5 5 0 63 A Jevelopment Control 533,901 3 101,500 2 1,641,400 4 3 3 5 3 5 0 54 A ~ommittee of Adjustment 9,630 1 0 0 1 3 1 3 5 0 26 M -1eritage Pickering 6,550 1 0 0 1 1 1 1 5 0 16 L Total 4,244,154 1,588,692 1,641,400 jbrary 4,374,057 4 321,607 2 186,750 2 3 3 3 3 3 0 49 M City Total 49,397,219 131,862,082 9,705,306 Score Risk Levels 0-25 L low 26-50 M moderate 51-75 A above avera,le 76-100 H high Cilq 0# REPORT TO EXECUTIVE COMMITTEE Report Number: CS 30-07 Date: November 12 , 2007 73 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Council Compensation Policy Recommendation: 1. That Report CS 30-07 of the Director, Corporate Services & Treasurer be received; 2. That the Council Compensation Policy, included as Attachment #1 to this report be approved and By-law No. 5992/02, as amended, be repealed; and, 3. That the appropriate officials of the City of Pickering be authorized to take the necessary actions to give effect thereto. Executive Summary: At the February 8, 9 and 19th Council Strategy Session, the Council Compensation Policy was reviewed and direction received by staff to update and/or change certain items of the policy. Further formatting changes were required in accordance with the City standards for Council approved policies and procedures. The draft policy was further circulated in May and October for comments from members of Council. Financial Implications: All financial implications for 2007 were in accordance with the 2007 Current and Capital budget as approved on April 2,2007. Sustainability Implications: This report and recommendation for policy revisions are relevant to the social lens of sustainability by addressing municipal compliance with legistlative requirements for an open, accountable government. Report CS 30-07 November '12, 2007 Subject: Council Compensation Policy Page 2 74 Background: In accordance with the existing policy, a review of the~ Council Compensation and Communications Policy was to be undertaken every three years prior to the budget meetings that follow the general municipal election. Aspects of the Policy review were covered in Reports CS 06-07 and CS 10-07 of the Director, Corporate Services & Treasurer and subsequently referred to the Council Strategy Sessions held on February 8, 9 and 19,2007. Following the discussion held at the' strategy session, concensus was reached on a number of changes within the exiisting policy. The reformatted policy outlining recommended changes were forwarded to Members of Council and Senior Staff on May 2, 2007 for review and any further suggested amendments/corrections. Staff are satisfied that the policy as presented addnesses changes requested. All changes have been reflected in the revised policy, along with a number of format changes. The only change, which will be subject to 2008 budget discussions, was a request to increase the travel allowance to $900.00 per month ($10800. per annum versus thE! existing $9790. per annum). By-law No. 5992/02, as amended by By-law No. 6452/04, copies of which are enclosed as Attachment #4 to this report, is bE~ing necommended to be repealed as the Policy is the formal reference document. The by-law, as amended, should have been repealed in 2005 when the policy came into efflect. The policy also incorporates the onE~-thircl of the taxable remuneration and expenses being deemed as expenses incident to the discharge of their duties for income tax purposes. Attachments: 1. Council Compensation and Communications Policy, as revised 2. Summary of Changes with Revised Policy 3. Existing Council Compensation and Communications Policy, as approved on May 2,2005 through Resolution #74/05, as amended. 4. By-law 5992/02, as amended by, By-law 6452/04 (to be repealed) Prepared By: Prepared I Approved I Endorsed By: bb CQ\.l..,.vr . ,,' ~ .... _~ '.~ '~l.\tY-cY Debi A. Wilcox City Clerk ~ . ..~"". .....:=:~.-. ~~~~-;> Gillis A. Paterson Director, Corporate Services & Treasurer Report CS 30-07 Subject: Council Compensation Policy November 12, 2007 Page 3 '75 76 CITY POLlCY/PRO.Nh I TO REPORT 11_;; 1 ., .' ,~..~,...,..,,~_.,~,-, , , .-' 1. Approval: Date Originated: Policy Number: Chief Administrative Officer May .2, .2005 Classification: ADM Reference: Date Revised: Resolution #74/05 May 2007 Category: '140 Policy Title: COUNCIL COMPENSATION AND COMMUNICATIONS POLICY LEGISLATIVE AUTHORITY The Council Compensation and Communications Policy derives its authority from the Municipal Act. POLICY STATEMENT: The Corporation of the City of Pickering is committed to enhancing Council in tlheir role to . represent the public and to consider tlhe wE~II-being and interests of Council, including maintaining the financial integrity of the municipality. POLICY OBJECTIVE: The objective of this Policy is to: 1. Provide consistent rules and guidelines for the Mayor and Members of Council with respect to salary, expenses and communications of elected officials; and 2. Provide guidelines to staff to ensure all expenses are submitted and approved in accordance with the established parameters of the policy. GENERAL: 01 Definitions: 01.01 Cooperative Letter - shall mean a letter or other printed document that contains information of interest to residents in more than one ward and which shall be mailed or distributed beyond a ward boundary and may involve the participation of a community group. 01.02 Councillor - shall mean all Members of Council, excluding the Mayor 01.03 Members of Council- shall include the Mayor and all Members of Council 01.04 Neiqhbourhood Letter - shall mean a document that is prepared on letterhead andlor signed by a Member of Council and sent to a defined neighbourhood or community of interest within the constituency of a Member of Council. CITY POLICY/PROCEDURE 77 Approval: Date Originated: Policy Number: Chief Administrative Officer May 2, 2005 Classification: ADM Reference: Date Revised: Resolution #74/05 May 2007 Category: 140 Policy Title: COUNCIL COMPENSATION AND COMMUNICATIONS POLICY 01.05 01.06 01.07 Newsletter - shall mean a document that is not greater in size than tabloid sized paper (11 "x17") and printed on both sides and shall contain information of interest to the constituents of a Councillor. A newsletter shall not be mailed or otherwise distributed beyond the boundaries of the constituency of a Councillor except where postal walks cross beyond the boundaries of their ward. In instances where Councillors are assigned or appointed to additional duties, which may require some cross-ward boundary communication, exceptions may apply as determined by the City Clerk. These cross-ward mailings to fulfill additional duties shall not exceed 500 homes into a ward not represented by a Councillor and shall not occur after January 1 st in the year of a general municipal election. Telecommunications Equipment - shall include all equipment capable of transmitting over landlines and/or wireless modes such as land line telephones, cell phones, PDA's (Personal Digital Assistant), pagers, facsimile equipment or any hybrid of these items. Website - shall mean a site on the World Wide Web that shall contain information of interest to the constituents of a Member of Council. The website may be hosted on any server external to the City. 02 Responsibilities: 02.01 Council to: (a) Adhere to and support the Council Compensation and Communications Policy. (b) Approve amendments as presented by the Chief Administrative Officer and/or Director, Corporate Services & Treasurer. 02.02 Chief Administrative Officer to: (a) Support the Council Compensation and Communications Policy. 78 CITY POLICY/PROCEDURE Approval: Date Originated: Policy Number: Chief Administrative Officer May :2, 2005 Classification: ADM Reference: Date Revised: Resolution #74/05 May :2007 Category: 140 Policy Title: COUNCIL COMPENSATION AND COMMUNICATIONS POLICY 02.03 City Clerk to: (a) Approve, in consultation with the Director, Corporate~ SeNices ~~ Treasurer any expenditures in accordance with the policy. . 03 Salary: 03.01 The remuneration payable to the Mayor shall be: a) $68,188. per annum effective January 1, 2007 b) Commencing on .January 1,2007 and on every January 1st thereafter, the annual salary of the Mayor shall be increased at the same rate/percentage provided to those employees covered by the Collective Agreement for CUPE L.ocal129 on April 1 st of the immediate precedin~~ year. 03.02 The remuneration payable to a Councillor shall be: a) $28,413. per annum effective January 1, 2007 b) Commencing on .January 1,2007 and on every January 1st thereafter, the annual salary of a Councillor shall be increased at the same rate/percentage provid'9d to those employees covered by the Collectivl3 Agreement for CUPE Local 129 on April 1 st of the immediate precedin~J year. c) A Councillor shall be paid a per diem rate of 1.0% of their annual salary for a total of ten days for attending a full day meetin!~, workshop, seminar or convention. Per diem payments payable to Councillors shall be paid monthly. Per diem payments shall cease on the last day that the Councillors remains in office and shall be pro-rated accordingly. 03.03 Remuneration payable to Members of Council shall be based on an annual rate and paid bi-weekly. Remuneration to Members of Council shall cease on the last day that the Member remains on the Council of the City of Pickering. CITY POLICY/PROCEDURE 79 Approval: Date Originated: Policy Number: Chief Administrative Officer Mav 2, 2005 Classification: ADM Reference: Date Revised: Resolution #74/05 May 2007 Category: 140 Policy Title: COUNCIL COMPENSATION AND COMMUNICATIONS POLICY 03.04 The one-third of the remuneration paid to Members of Council and local boards of the municipality is deemed as expenses incident to the discharge of their duties as Members of Councilor the local board. 04 Allowances: 04.01 Reimbursement shall be provided to Members of Council for the cost of meals to discuss matters of City business or attending functions that are connected to the business of the City as may be provided in the annual budget. a) With respect to meals, reimbursement shall be provided only for reasonable food and liquor expenses. b) With respect to meals, no reimbursement shall be provided unless the original restaurant bill or transaction slip is submitted for approval to the City Clerk, and the number of persons attending the meal and the general purpose of the meal is noted. 04.02 A travel allowance as determined in the annual Current Budget shall be provided to each Member of Council. a) The travel allowance shall be paid on a monthly basis. b) The travel allowance shall be deemed to provide for all travel and travel- related expenses within the GT A and shall include but not be limited to fuel, parking, highway tolls, taxi fares, public transportation fares and valet services. c) This travel allowance excludes travel expenses related to conventions outside the GT A as set out in Section 04.03. d) Travel outside the Greater Toronto Area (GTA) shall be paid at the per kilometer rate of reimbursement approved in the Current Budget or economy class return air fare between Toronto and the destination, whichever is the lesser. 04.03 A budget of $12,000. per term for each Member of Councillor shall be provided. This will be an allocation of $3,000.00 per Member of Council in each annual budget for conventions. 80 CITY POLICY/PROCEDURE Approval: Date Originated: Policy Number: Chief Administrative Officer May 2,2005 Classification: ADM Reference: Date Revised: Resolution #74/05 May 2007 Category: 140 Policy Title: COUNCIL COMPENSATION AND COMMUNICATIONS POLICY 04.04 a) For the purposes of Section 04.03, the word "convention" shall include seminars and workshops as provided in the annual budget and excludes conventions paid by other City-related agencies such as the Region, Veridian, etc. b) Convention expenses shall include actual accommodation and registration costs and, if applicable, travel and meals. c) Travel necessary for conventions outside the GT A shall be paid at the per kilometer rate of reimbursement approved in the Current Budget or economy class return air fare between Toronto and the destination, whichever is the lesser. Other travel related expenses such as parking, vehicle rentals, taxi fares, public transportation fares and highway tolls incurred for conventions outside the GTA shall also be reimbursed upon presentation of receipts. d) In lieu of receipts, an allowance of a maximum of $90.00 per day may be paid for ancillary expenses such as meals, taxi fares, parking, telephone and hotel internet charges where such expenses are not otherwise claimed or paid. This allowance shall be prorated for conventions that are less than one day. This per diem payment is intended to cover out-of-pocket expenses for City business only. e) No allowance shall be provided to a new Councillor in an election year. Workshops or orientation seminars for new Councillors are excepted. Council support services shall reflect the following: a) An allocation of $4,800 per annum is provided for each Councillor to provide services beyond those services provided by the Council-support staff at the Civic Complex. Any discrepancy on the services provided are to be at the sole discretion of the Chief Administrative Officer and/or in his absence, the Director, Corporate Services & Treasurer. b) The support staff assigned to the Councillor's Office are available to assist a Councillor with the preparation of their newsletter, neighbourhood letter, cooperative letter, website or other form of communication, however, no other City staff shall be involved in SUlch preparation and any specialty work that is required shall be charged to CITY POLICY/PROCEDURE 81 Approval: Date Originated: Policy Number: Chief Administrative Officer May 2, 2005 Classification: ADM Reference: Date Revised: Resolution #74/05 May 2007 Category: 140 Policy Title: COUNCIL COMPENSATION AND COMMUNICATIONS POLICY 05 Benefits: 05.01 the budget prescribed for communication media or the Allowance for Outside Secretarial Services. c) Payment shall be made directly by the City to the service provider (individual or company) upon submission of an original detailed invoice. An invoice from individuals for external services would contain, in addition to the name and address, additional details of services provided such as itemizing hours by day, GST business registration number and description of work provided. All invoices require sign off by the Councillor to indicate the services were received prior to authorization and before payment can be processed. Health Plan a) An Extended Health Plan as is provided to the non-union employees shall be available to all Members of Council and their families, which includes a prescription and dental plan, vision care plan and semi- private hospital coverage. b) For Members who have completed fifteen years of continuous service and cease to be a Member for the reasons set out in Section 05.05 a), the Corporation shall pay 100% of the premium cost of the Extended Health, Dental and Vision Care Benefit Plans until the Member attains age 70. c) The Corporation shall continue to pay 100% of the premium costs of the Extended Health, Dental and Vision Care Benefit Plans in respect of a Member's surviving spouse and dependents for up to twelve (12) calendar months following a Members death while in service. 05.02 A Term Life Insurance Policy shall be paid by the City on behalf of Members of Council in the following amounts: a) Mayor - $200,000 b) Councillor - $100,000 82 CITY POLICY/PROCEDURE Approval: Date Orig Chief Administrative Officer May :~, 20( Reference: Date Revi: Resolution #74/05 May ;2007 Policy Title: COUNCIL COMPENSJ iinated: Policy Number: )5 Classification: ADM sed: Category: 140 ~TION AND COMMUNICATIONS POLICY 05.03 Accidental death and dismemberment insurance coverage shall be paid by the City on behalf of Members of Council. 05.04 A Member of Council may maintain a Registered Retirement Savings Plan (RRSP),either own or spousal, under Federal legislation to which the Corporation shall contribute a maximum of 13% of the Member's earned salary each year. a) Written confirmation that a member has sufficient contribution room, as provided by the Canada Revenue Agency on thElir notice of assessment, to accommodate the City's contribution sha!ll be provided to the Treasurer no lalter than December 31st in any given year and the City's contribution shall be made directly to that RRSP no later than January 31 st of the next calendar year. b) For the 2006/20017 transition only, if the member has already made the contribution to thE~ RRSP, reimbursement may be made to that memb(~r. c) The word "salary" shall mean the annual base salary, prorated for a Member not holding office for an entire calendar year, of tine Mayor and Councillors and it excludes all taxable benefits. The contribution to an RRSP is a taxable benefit regardless of whether it is paid to the Member of Councilor the financial institution. d) The City shall make its contribution only in the month of January of the next calendar year renardless of when the Member of Council made! a contribution, except when a Member of Council ceases to hold office during the year. 05.05 a) A Member of Council, with slervice of more than four consecutive years, may, upon written application to the Clerk by the Member, or by a representative appointed in writing by the Member, receive severance remuneration upon ceasing to be a Member by reason of: i) election defeat; ii) resignation; iii) leaving office; iv) election to another government body; or CITY POLICY/PROCEDURE 83 Approval: Date Originated: Policy Number: Chief Administrative Officer May 2, 2005 Classification: ADM Reference: Date Revised: Resolution #74/05 May 2007 Category: 140 Policy Title: COUNCIL COMPENSATION AND COMMUNICATIONS POLICY v) dying while in office if the Member is 65 years of age or over and not eligible to receive benefits under the City's group life insurance program; b) No Member of Council shall be entitled to receive severance remuneration who ceases to be a Member by reason of, or by resignation which, is a result of or given in anticipation of: i) removal from office by judicial process; or ii) notwithstanding Section 05.05 (a)(iv) above, disqualification under or operation of any Act of the Parliament of Canada or the Legislature of the Province of Ontario. c) Severance remuneration shall be equal to one month of salary for a Member of Council, times the number of years of consecutive, uninterrupted full service of the Member, to a maximum amount payable of 24 months remuneration. Severance remuneration shall be calculated from the day the Member took office to the last day that the Member ceases to hold office. d) A written application for severance remuneration must be received by the Clerk within six calendar months of a Member of Council ceasing to be a Member, otherwise any entitlement to severance remuneration shall be forfeited. Upon approval of the application by the City Clerk, payment arrangement shall be agreed to that does not extend beyond three years. 06 Communications: 06.01 Computer Hardware/Software and Telecommunications Equipment a) A capital budget of $10,000 per term, per Member of Council, shall be in effect for the acquisition of computer hardware/software and telecommunications equipment. Expenditures of this allocation shall only be made in the first three years of office following a general election. Any acquisitions made following an election or appointment . . 84 CITY POLICY/PROCEDURE i nated: Policy Number: )5 Classification: ADM ~;ed: Category: 140 ~TION AND COMMUNICATIONS POLICY . Approval: Date Orig Chief Administrative Officer May 2, 20( Reference: Date Revi Resolution #74/05 May 2007 Policy Title: COUNCIL COMPENSJ and prior to the approval of the following year's budget, shall be charg,ed to this allocation. b) No computer hardwam/software or telecommunications equipment shall be purchased or leas€,d for Members of Council after January 1 st in the year of a general municipal election unless it is lost or stolen, or no longer operates and cannot be repaired to its initial operating specifications. The old equipment must be returned, and/or affidavit that the equipment has been lost or stolen must be submitted. c) Following a general municipal election, by-election or appointment, the new Member(s) of Council shall be contacted by staff to determine their needs. Members of Council may choose to be supplied with equipment recommended by City staff or they may choose to be supplied with equipment of their choice. The Manager, IT must be consulted to verify compatibility and to clarify IT support opportunities before purchase. At the point of delivery of the equipment, Members of Council shall be required to sign the Home Equipment Agreement which shall set out the equipment that has been supplied to the Member and the conditions under which it has been supplied. d) Equipment that is lost, stolen or no longer operates and cannot be repaired to its initial operating specifications shall be replaced by the City and shall not be charged to the $10,000 allocation set out in Paragraph (a) above. If the equipment is lost, stolen or damaged as a direct result of misuse or negligence, he or she may be asked to replace or repair at his or her expense to the satisfaction of the City. e) Every Member of Council who does not continue to hold municipal office shall ensure that all computer hardware/software, telecommunications equipment and any other equipment purchased or leased on their behalf by the City is returned to the City by November 30th following a general municipal election or within 21 days of ceasing to hold office. In the event the above noted items are not returned by the said date, the matter shall be referred to the Chief Administrative Officer (CAO) to pursue recovery. 06.02 Telecommunication Charges CITY POLICY/PROCEDURE 85 Approval: Date Originated: Policy Number: Chief Administrative Officer May 2, 2005 Classification: ADM Reference: Date Revised: Resolution #74/05 May 2007 Category: 140 Policy Title: COUNCIL COMPENSATION AND COMMUNICATIONS POLICY a) Long distance, airtime and other charges that are incurred for City purposes by Members of Council in the use of their telecommunications equipment shall be reimbursed. b) Charges for the use of an Internet Service Provider by Councillors shall also be reimbursed for one location only. c) In order to recognize the large rural area in Pickering that is outside the area served by high speed Internet access, individual requests for the additional reasonable cost of Internet access exceeding standard urban connection costs shall be provided, subject to review and approval by the Chief Administrative Officer. 06.03 Communications Media a) It is recognized that there are many various methods for Councillors to communicate with their constituents, including newsletters, neighbourhood letters, cooperative letters and websites. b) The City shall cover the cost of preparing, printing and mailing newsletters, neighbourhood letters and cooperative letters as well as the cost of creating and maintaining a website. A budget per Councillor of $7,500 for the first, second and third calendar years and $6,000 for the final calendar year of a term will be provided for these items. If the budget is under spent in any given year, there shall be no carry-forward of dollars to subsequent budgets. c) A link to the Councillor's City-funded website may only be provided from the City of Pickering website under the Councillor's profile link. d) Subject to Section 04.04, Councillors may hire external services as needed over and above what is currently provided in accordance with the City's policies and practices. Review of external services shall be at the discretion of the City Clerk in conjunction with the Manager, IT. e) The following conditions shall apply to the preparation/distribution of newsletters, neighbourhood letters, cooperative letters, websites and other forms of communication: 86 CITY PC)LICY/PROCEDURE Approval: Date Origiinated: Policy Number: Chief Administrative Officer May 2, 2005 Classification: ADM Reference: Date Revilsed: Resolution #74/05 May 2007 Category: 140 Policy Title: COUNCIL COMPENSATION AND COMMUNICATIONS POLICY i) On or after September 1 in the year of a genElral municipal election, no mailing or distribution of a newsletter, neighbourhood letter or cooperative letter shall occur where the costs shall be borne by the City. iii) On September 1 in the year of a general municipal election, the link from the City's website to any Councillor's City-funded or personal website shall be severed until after the election. If these conditions have not been met by September 2 of that year, the City shall take steps under the authority of the CAD to sever the Councillor's website. The link shall be mactivated the day following the election and funding of the Councillor's website shall commenCl3 on December 1 following the election. In the event that a Councillor is acclaimed, the said website may be reactivated on the day following the last day to withdraw a Nomination. iii) A newsletter, neighbourhood letter, cooperative letter, City- funded website or other communications media shall not contain information that would promote any candidate in an election. iv) A newsletter, neighbourhood letter, cooperativEl letter, City website or other communications media shall not contain advertising that would promote a product or service of a company, organization or individual. v) A Member of Council shall not be reimbursed for communications expenses incurred through a media that has general circulation in the City of Pickering, such as a newspaper, radio or television station. 06.04 Individual Members of Council shall not use City funds to make individual grants or donations to organizations or persons. 06.05 General CITY POLICY/PROCEOURE 87 Approval: Date Originated: Policy Number: Chief Administrative Officer May 2, 2005 Classification: ADM Reference: Date Revised: Resolution #74/05 May 2007 Category: 140 Policy Title: COUNCIL COMPENSATION AND COMMUNICATIONS POLICY a) This Policy shall be reviewed every four years prior to the budget meetings that follow the general municipal election to review the appropriateness of the budgets and Policy. b) When a vacancy occurs and is subsequently filled, compensation, benefits and allowances shall be pro-rated to the term of office. _, ..~_.__".__._ .___.__~,...~._~~_~___r -';';C ". .. ..,'. ..... -- -,' ......~-~".._--~.,--"-~,- ATTACHMENT #2_ Tf! pqJJlP.T ~t cs l '3O...o~' _W.~, .~"",.~,_"~~~~,=,,,~....~.,::J..,_.~. '. ".:','_~,__.,_.~:_~.,.~._ ... .....::~1..~~.~:::=:::::J.. I 88 COUNCIL COMPENSATION 4~ COMMUNICATIONS POLICY ADM 140 Revision Date: October, 2007 New Section of the Old Section Summary of Change Reason/Rationale for Policy of the Policy Change Legislative Authority Not Inclusion of Legislative authority Standard policy and Referenced for the policy orocedure format Policy Statement Not Inclusion of Policy Statement Standard policy and Referenced orocedure format Policy Objective Not Inclusion of Policy Objective Standard policy and Referenced procedure format 01 Definitions 15 a. NI::l chan!~e Format only 01.01 Cooperative Letter 01 Definitions 15 b. No chan!~e Format only 01.02 Newsletter 01 Definitions 15 c. No chan!~e Format only 01.03 Neighbourhood Letter 01 Definitions 15 d. No chan!~e Format only 01.04 Website 01 Definitions 15 e. No chan!~e Format only 01.05 Telecommunications Equipment 01 Definitions 14 No chan!~e Format only 01.06 *M 02 Responsibilities Not Inclusions of responsibilities Standard policy and 02.01 Council to: Referenced wiithin the policy procedure format a) b) 02 Responsibilities Not Inclusions of responsibilities Standard policy and 02.02 Chief Referenced wiithin the policy procedure format Administrative Officer to: 02 Responsibilities Not Inclusions of responsibilities Standard policy and 02.03 City Clerk to: Referenced within thl3 policy procedure format 03 Salary 1 a) Delete '$63,654 per annum Change to reflect 2007 03.01 The remuneration effective January 1, 2005' and rates payable to the Mayor replace with '$68,188 per annum shall be: a) effective January 1, 2001' 03 Salary 1 b) Replace "2006" with "2001" Change to reflect 2007 03.01 The remuneration revision payable to the Mayor shall be: b) 03 Salary 2 a) Delete '$26,523. per annum Change to reflect 2007 03.02 The remuneration effective January 1, 2005' and rates payable to a Councillor replace with '$28,413. per annum shall be: a) effective January 1, 2001'. 03 Salary 2 b) c) Replace "2006" with "2007" Format only 03.02 The remuneration payable to a Councillor shall be: b) a~ -- 03 Salary 3. No change Format only 03.03 Remuneration... 03 Salary By-law Include "The one-third of the Legal requirement under 03.04 Remuneration 5992/02, as remuneration paid to Members of the Municipal Act. By-law amended Council and local boards of the repealed as policy is the municipality is deemed as reference document. T.\ A "ITA/) ",.r.._:~:_~1 0~..~.....:1 ,.-,...-...-.......:.u.......... ..........J 0.............-1..',.-,............:1 (1.....1........., {Jr T)""...."r:f!,\rA,11t"H...il (""nt'Y\t"\l3nL'atin" PAl;....." 89 New Section of the Old Section Summary of Change Reason/Rationale for Policy of the Policy Change i expenses incident to the I discharge of their duties as I Members of Councilor the local I board. 04 Allowances 4 a) and b) No change Format only 04.01 Reimbursement a) and b) 04 Allowances 5. a) b) c) No change Format only 04.02 Travel allowance and d) , a) b) c) d) 04 Allowances 6. a) b) c) e) Replace with: A budget of Staff Recommendation: 04.03 Conventions $12,000. per term for each reflect current practice a) b) c) and e) Member of Councillor shall be provided. This will be an allocation of $3,000.00 per Member of Council in each I annual budget for conventions. ~ I I 04 Allowances 6. d) Delete $60.00 per day and Council direction from the I 04.03 Conventions replace with $90.00 per day Strategy Session i d) 04 Allowances 7. a) b) and No change Format only 04.04 Council support c) a) b) and c) 05 Benefits 5. a) b) and No change Format only 05.01 Health Plan c) a) b) and c) 05 Benefits 5. a) and b) No change Format only 05.02 Term Life I Insurance I a) and b) 05 Benefits 10 No change Format only I 05.03 Accidental Death I Not applicable 5. a) b) c) d) Deleted in its entirety Deleted because policy is and e) comprehensively dealt within By-law No. 5038/97 and through existing insurance policies. l 05 Benefits 12 No change Policy previously updated 05.04 RRSP January 15, 2007 to reflect a) b) c) d) recommendations in Report CS 06-07 05 Benefits 5. a) b) c) No change Format only 05.05 Severance and d) a) b) c) and d) Applicability 14 Deleted in its entirety Included in Definitions 06 Communications 16 a) Delete" in the first two years" and Change to reflect a four I 06.01 Computer change to " in the first three year term of Council Hardware/Software years" a) 06 Communications 16 b) Addition: "the old equipment Staff recommendation - 06.01 Computer must be returned, and/or affidavit reflect current practice J :\^-21 00 Municipal Council, Committees and Boards\Council Salary & Benefits\Council Compensation Policy 2 Summary of Changes. doc 90 New Section of the Old Section Sl Policy of the Policy Hardware/Software th b) or 06 Communications 16c) and e) NI 06.01 Computer Hardware/Software 06 Communications 16 d) AI 06.01 Computer st Hardware/Software re or or th 06 Communications 17 a) A 06.02 Telecommunication Charges a) 06 Communications 17 b) A 06.02 ap Telecommunication A Charges b) 06. Communications 18a)b)c)d) N, 06.03 Communications and e) Media a) b) c) d) and e) 06 Communications HI N 06.04 Donations 06 Communications 20 D 06.05 General a) te a) 06 Communications 20 N 06.05 General b) b) Jmmar at the stolen J chan jdition olen or suit of she m repair e satis ddition ddition prova dminist o chan o chan elete'i chnolo o Chan f of Change Reason/Rationale fer Change Elquipment has been lost must be submitted" !Je Format only : If the equipment is lost, Staff recommendation: damaged as a direct reflects City policy on misuse or negligence, he Computer Use ay be asked to replace at his or her expense to faction of the City. : "for one location only" Staff recommendation - reflect current practice : "subject to review and Staff recommendation - I by the Chief reflect current pracH::e rative Officer" ge Format only !Je Format only 11 the context of current Staff recommendation - gy' reflects current practice ge Format only J :\A-21 00 Municipal Council, Committees and Boards\Council Salary & Benetlls\Council Compensation Policy 3 Summary of Changes. doc .-..........__t..~._................'-""_._...".'"-. ,.. ~ ,:',1 i 1."; il ES #13/05 May 2,2005 [Report CS 30-05] Revision: RES #12/07 January 15, 2007 [Report CS 06-07] )-07 ATTACHMENT tL (. 91 SALARY, EXPENSES AND COMMUNICATIONS RESPECTING MEMBERS OF COUNCIL SALARY: 1. The remuneration payable to the Mayor shall be: a) $63,654 per annum effective January 1, 2005 b) Commencing on January 1, 2006 and on every January 1st thereafter, the annual salary of the Mayor shall be increased at the same rate/percentage provided to those employees covered by the Collective Agreement for CUPE Local 129 on April 1 st of the immediate preceding year. 2. The remuneration payable to a Councillor shall be: a) $26,523.00 per annum effective January 1, 2005 b) Commencing on January 1, 2006 and on every January 1 st thereafter, the annual salary of a Councillor shall be increased at the same rate/percentage provided to those employees covered by the Collective Agreement for CUPE Local 129 on April 1 st of the immediate preceding year. c) A Councillor shall be paid a per diem rate of 1.0% of their annual salary for a total of ten days for attending a full day meeting, workshop, seminar or convention. Per diem payments payable to Councillors shall be paid monthly. Per diem payments shall cease on the last day that the Councillors remains in office and shall be pro-rated accordingly. 3. Remuneration payable to Members of Council shall be based on an annual rate and paid bi-weekly. Remuneration to Members of Council shall cease on the last day that the Member remains on the Council of the City of Pickering. 92 2 ALLOWANCES: 4. Reimbursement shall be providE!d to Members of Council for the ClOst of meals to discuss matters of City business or attending functions that are connected to the business of the City as may be provided in the annual budget. a) With respect to meals,2 rE~imbursement shall be provided only for reasonable food and liquor expenses. b) With respect to meals, no reimbursement shall be provided unless the original restaurant bill or transaction slip is submitted, and the number of persons attending the meal and the general purpose of the meal is noted. 5. A travel allowance as determined in the annual Current Budget shall be provided to each Councillor.. a) The travel allowance shall be paid on a monthly basis. b) The travel allowance shall be deemed to provide for all travEll and travel-related expenses within the GT A and shall include but not be limited to fuel, parking, highway tolls, taxi fares, public transportation fares and valet services. c) This travel allowance excludes travel expenses relatE!d to conventions outside the GT A as set out in Section 6. d) Travel outside the GiTA shall be paid at the per kilometer rate of reimbursement approved in the Current Budget or economy class return air fare between Toronto and the destination, whichever is the lesser. 6. An allocation of $3,000 per Councillor shall be provided in each annual budget to provide for conventions. a) For the purposes of Section 6, the word "convention" shall include seminars and workshops as provided in the annual budget and excludes conventions paid by other City-related agencies such as the Region, Veridiian, etc. b) Convention expenses shall include actual accommodation and registration costs and, if applicable, travel and meals. J 93 c) Travel necessary for conventions outside the GTA shall be paid at the per kilometer rate of reimbursement approved in the Current Budget or economy class return air fare between Toronto and the destination, whichever is the lesser. Other travel related expenses such as parking, vehicle rentals, taxi fares, public transportation fares and highway tolls incurred for conventions outside the GTA shall also be reimbursed upon presentation of receipts. d) In lieu of receipts, an allowance of a maximum of $60.00 per day may be paid for ancillary expenses such as meals, taxi fares, parking and telephone charges where such expenses are not otherwise claimed or paid. This allowance shall be prorated for conventions that are less than one day. This per diem payment is intended to cover out-of-pocket expenses for City business only. e) No allowance shall be provided to a new Councillor in an election year. Workshops or orientation seminars for new Councillors are excepted. 7. a) An allocation of $4,800 per annum is provided for each Councillor to provide services beyond those services provided by the Council- support staff at the Civic Complex. b) The support staff assigned to the Councillor's Office are available to assist a Member of Council with the preparation of their newsletter, neighbourhood letter, cooperative letter, website or other form of communication, however, no other City staff shall be involved in such preparation and any specialty work that is required shall be charged to the budget prescribed for communication media or the Allowance for Outside Secretarial Services. c) Payment shall be made directly by the City to the service provider (individual or company) upon submission of an original invoice. An invoice from individuals for external services would contain, in addition to the name and address, additional details of services provided such as itemizing hours by day and description of work provided. All invoices would require sign off by the Councillor to indicate the services were received prior to authorization and before payment can be processed. 4 94 BENEFITS: 8. a) An Extended Heallth Plan as is provided to the non-union employees shall be available to all Members of Council and their families, which includes a prescription and dental plan, vision care plan and semi-private hospital coverage. b) For Members who have completed fifteen years of continuous service and cease to bl3 a Member for the reasons set out in Section 13(a)(i to v), tine Corporation shall pay 100% iOf the premium cost of the Extended Health, Dental and Vision Care Benefit Plans until the Member attains age 70. c) The Corporation shall continue to pay 100% of the premium costs of the Extended Health, Dental and Vision Care Benefit Plans in respect of a Member's surviving spouse and dependents for up to twelve (12) calendar months following a Members death while in service. 9. A Term Life Insurance Policy shall be paid by the City on behalf of Members of Council in the following amounts: a) b) Mayor - Councillor - $200,000 $100,000 10. Accidental death and dismemberment insurance coverage shall be paid by the City on behalf of Members of Council. 11. Subject to any existing insurance agreements or policies, the City shall indemnify Members of Council in the course of their Council duties with respect to liability arising out of acts or omissions done or made by them as follows: a) Pay to the parties entitled thereto, any damages and costs awarded against any Member of Council. b) Either pay directly or reimburse to the Member of Council any reasonable expenses incurred by them. c) Assume the cost of defending every Member of Council. d) Pay any sum required in connection with a reasonable settlement. 5 95 e) Limited liability for claims such as malicious prosecution, conflict of interest, slander, defamation of character, invasion of privacy, errors and omissions and legal expenses for claims of breach of Provincial statutes. 12. a) A Member may contribute to a Registered Retirement Savings Plan (RRSP), either own or spousal, under Federal legislation to which the Corporation shall match to a maximum of 11 % of the Member's earned salary. b) i) Written evidence of a contribution by a Member towards an RRSP as set out in Section 12(a) shall be made to the Treasurer no later than December 31st in any given year and the City's contribution shall be made no later than January 31 st of the next calendar year. ii) A Member of Council must give evidence to the Treasurer that a contribution includes both the Member's portion of the RRSP and the City's portion. The Member shall then be reimbursed for the City's portion. c) The word "salary" shall mean the annual base salary, prorated for a Member not holding office for an entire calendar year, of the Mayor and Councillors and it excludes all taxable benefits. The contribution to an RRSP is a taxable benefit regardless of whether it is paid to the Member of Council or the financial institution. d) The City shall make its contribution only in the month of January of the next calendar year regardless of when the Member of Council made a contribution, except when a Member of Council ceases to hold office during the year. 13. a) A Member of Council, with service of more than three consecutive years, may, upon written application to the Clerk by the Member, or by a representative appointed in writing by the Member, receive severance remuneration upon ceasing to be a Member by reason of: i) election defeat; ii) resignation; iii) leaving office; 6 96 iv) election to another government body; or v) dying while in officE~ if the Member is 65 years of age or over and not eligible to receive benefits under the City's group life insurance program: b) No Member shall be entitled to receive severance remuneration who ceases to be a Member by reason of, or by resignation which, is a result of or given in anticipation of: i) removal from office by judicial process; or ii) notwithstanding Section 13(a)(iv) above, disqualification under or operation of any Act of the Parliament of Canada or the LegislaturE3 of the Province of Ontario. c) Severance remuneration shall be equal to one month of salary for a Member, times the number of years of consecutive, uninterrupted full service of the Member, to a maximum amount payable of 24 months remuneration. Se!verance remuneration shall be calculated from the day the Member took office to the last day that the Member ceases to hold office. d) A written application for severance remuneration must be received by the Clerk within six calendar months of a Member ceasing to be a Member, otherwise any entitlement to severance remuneration shall be forfeited. Upon approval of the application, payment arrangement shall be agreed to that does not extend beyond three years. 7 97 COMMUNICA TIONS: Applicabilitv 14. Except where noted, Sections 15 to 20 do not apply to Mayor of the City of Pickering. Sections that do directly apply to the Mayor are identified by the notation *M&C. Definitions 15. a. "Cooperative Letter" shall mean a letter or other printed document that contains information of interest to residents in more than one ward and which shall be mailed or distributed beyond a ward boundary and may involve the participation of a community group. b. "Newsletter" shall mean a document that is not greater in size than tabloid sized paper (11 "x17") and printed on both sides and shall contain information of interest to the constituents of a Member of Council. A newsletter shall not be mailed or otherwise distributed beyond the boundaries of the constituency of a Member of Council except where postal walks cross beyond the boundaries of their ward. In instances where Member's of Council are assigned or appointed to additional duties which may require some cross-ward boundary communication, exceptions may apply as determined by the City Clerk. These cross-ward mailings to fulfill additional duties shall not exceed 500 homes into a ward not represented by a Member of Council and shall not occur after January 1 sl in the year of a general municipal election. c. "Neighbourhood Letter" shall mean a document that is prepared on letterhead and/or signed by a Member of Council and sent to a defined neighbourhood or community of interest within the constituency of a Member of Council. d. "Website" shall mean a site on the World Wide Web that shall contain information of interest to the constituents of a Member of Council. The website may be hosted on any server external to the City. *M&C e. "Telecommunications Equipment" shall include all equipment capable of transmitting over land lines and/or wireless modes such as land line telephones, cell phones, PDA's (Personal Digital Assistant), pagers, facsimile equipment or any hybrid of these items. 8 98 Computer Hardware/Software and TE!lecommunications Equipment 16. a) A capital budget of $10,000 per term, per Member of Council!, shall be in effect for the acquisition of computer hardware/software and telecommunications equipment. Expenditures of this allocation shall only be made in the first two years of office following a general election. Any acquisitions made following an election or appointment and prior Ito the approval of the following year's budget, shall be charged to this allocation. b) No computer hardware/software or telecommunications equipment shall be purchased or leased for Members of Council after January 1 st in the year of a genmal municipal election unless it is lost or stolen, or no longer operates and cannot be repaired to its initial operating specifications.. *M&C c) Following a general municipal election, by-election or appointment, the new Member(s) of Council shall be contacted by staff to determine their needs. Members of Council may choose to be supplied with equipment recommended by City staff or they may choose to be suppliE~d with equipment of their choice. IT staff must be consulted to verify compatibility and to clarify IT support opportunities before purchase. At the point of delivery of the equipment, Members of Council shall be required to sign the Home Equipment AgreemEmt which shall set out the equipment that has been supplied to the! Member and the conditions under which it has been supplied. *M&C d) Equipment that is lost, stolen or no longer operates and cannot be repaired to its initial operating specifications shall be replaced by the City and shall not be charged to the $10,000 allocation set out in Paragraph (a) above. :'M&C e) Every Member of Council who does not continue to hold municipal office shall ensure that all computer hardware/software, telecommunications equipment and any other equipment purchased or leased on their behalf by the City is returned to the City by November 30th following a general municipal election or within 21 days of ceasing to hold office. In the event the above noted items are not returned by the said date, the matter shall be referred to the Chief Administrative Officer (CAO) to pursue recovery. *M&C 9 99 Telecommunication Charaes 17. a) Long distance, airtime and other charges that are incurred for City purposes by Members of Council in the use of their telecommunications equipment shall be reimbursed. Charges for the use of an Internet Service Provider by a Member of Council shall also be reimbursed. b) In order to recognize the large rural area in Pickering that is outside the area served by high speed Internet access, individual requests for the additional reasonable cost of Internet access exceeding standard urban connection costs shall be provided. *M&C Communications Media 18. a) It is recognized that there are many various methods for Members of Council to communicate with their constituents, including newsletters, neighbourhood letters, cooperative letters and websites. *M&C b) The City shall cover the cost of preparing, printing and mailing newsletters, neighbourhood letters and cooperative letters as well as the cost of creating and maintaining a website. A budget per Councillor of $7,500 for the first calendar year, $7,500 for the second calendar year and $6,000 for the final calendar year of a term will be provided for these items. If the budget is under spent in any given year, there shall be no carry-forward of dollars to subsequent budgets. c) A link to the Member of Council's City-funded website may only be provided from the City of Pickering website under the Member of Council's profile link. *M&C d) Subject to Section 7, Councillors may hire external services as needed over and above what is currently provided in accordance with the City's policies and practices. e) The following conditions shall apply to the preparation of newsletters, neighbourhood letters, cooperative letters, websites and other forms of communication: i) On or after September 1 in the year of a general municipal election, no mailing or distribution of a newsletter, neighbourhood letter or cooperative letter shall occur where the costs shall be borne by the City. *M&C 10 100 ii) On September 1 in the year of a general municipal election, the link from the City's website to any Councillor's City- funded or personal website shall be severed until after the election. If these conditions have not been met by September 2 of that year, the City :shall take steps under the authority of the CAO to sever the Councillor's website. The link shall be reactivated the day following the election and funding of the Councillor's website shall commence on December 1 following the elecltion. In the event that a Councillor is acclaimed, the said website may be reactivated on the day following the last day to withdraw a Nomination. *M&C iii) A newsletter, neigl1bourhood letter, cooperative letter, City- funded website or other communications media shall not contain information that would promote any candidate in an election. *M&.C iv) A newsletter, neighbourhood letter, cooperative letter, City website or other communications media shall not contain advertising that would promote a product or service of a company, organization or individual. *M&C v) A Member of Council shall not be reimbursed for communications expenses incurred through a media that has general circulation in the City of Pickering, such as a newspaper, radio or television station. 19. Individual Members of Council shall not use City funds to make individual grants or donations to organizations or persons. *M&C General 20. a) This Policy shall be reviewed every three years prior to the budget meetings that follow the general municipal election to review the appropriateness of the budgets and Policy in the context of current technology. *M&C b) When a vacancy occurs and is subsequently filled, compensation, benefits and allowances shall be pro-rated to the term of office. *M&C This Schedule of Council's Salary, Benefits, Allowances and Communications Policy was approved by Resolution #73,105 passed on May 2, 2005. , ATTACHMENT' tf . cs- TO REPORT # 30'-~-7 THE CORPORA nON OF THE CITY OF PICKERING 1 0 1 BY-LAW NO. 5999/02 Being a by-law to provide remuneration and benefits for Members of Council. WHEREAS pursuant to Section 242(1) of the Municipal Act, RS.O. 1990, c. M.4S, as amended, the council of a municipality may pass by-laws for paying remuneration to the members of council, and such remuneration may be determined in any manner that council considers advisable; and WHEREAS pursuant to Section 242(2) of the said Act, the remuneration to be paid may be determined in different manners and be of different amounts for different members of council; and WHEREAS pursuant to Section 243(1) of the said Act, the council of a municipality may provide by by-law for paying in whole or in part such expenses of the members ofcouncll as are actually incurred as a result of their acting either within or outside the municipality in their capacity members of council and as are authorized by the by-law; and WHEREAS pursuant to Section 243(2) of the said Act, a by-law passed under subsection 243(1) may set maximum amounts or rates that may be paid in respect of any expense for which payment is authorized by the by-law; and NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: 1. In this by-law. a) "Corporation" means the Corporation of the City of Pickering. b) "Member" means any person who is a Member ofthe Council of the City of Pickering. c) "Service" means any period of service as a Member and shall include a Member's period of service occurring prior to December I, 2000. d) "Severance Remuneration" means the amount of money calculated in accordance with Section 6(b) of this by-law. - 2. a) The remuneration payable to the Mayor shall be as follows: First year in office Second consecutive year in office Third and subsequent consecutive years in office $54,000.00 SS8,OOO.00 $60,000.00 b) Section 2(a) is hereby retroactive to December 1, 2001. 3. a) The remuneration payable to a Councillor shall be as follows: .p h~ C(...T off 01') u_ _~..'_.'_I First year in office Second consecutive year in office . . . $22.000.00 $24,000.00 102 4. a) The Mayor shall be paid a pel' diem rate of 0.6% and a Councillor shall be paid oil per diem rate of 1.0% of their lmnual salary for, i) attending a :full day special meeting of Council or a committee called by the Mayor pursuant to By-law 3665/91. ii) attending a full day sp4~cial meeting of Council or a committee called by 11 majority ofCounc:illors pursuant to By-law 3665/91. ill) attending a meetiing, workshop, seminar or convention authorized by tht~ Mayor, by policy, such as: . attending a full day meeting of an ad hoc committee ,called by thl~ Mayor or a maj10rity of Councillors. . attending a full day meeting as a representative of Council on all issue that is und,er consideration by Council. . attending a filtll day workshop, seminar or convention as Ii representative o,f Council. b) A Member shall be eligible f01C' a maximum of ten per diem payments as noted in Section 4(a) above in any' caler.ldar year. 5. a) A Member may contribute to I:l Registered Retirement Savings Plan (RRSP) undelr Federal legislation to wbtich the Corporation will match to a maximum of 9% of the Member's salary. b) Evidence of a contribution by a Member towards an RRSP as set out in Section 5(a) shall be made to the Treasurer no later than December 31 st in any given year and the City's contribution shall be made no later than January 3151 of the neX1: calendar year. c) Section 5(a) is hereby retmactive to January I, 2002. 6. a) A Member, with service of more than three consecutive years, may, upon writter.l application to the Clerk therefclre by the Member, or by a representative appointed in writing by the Membc::r, re<::eive severance remuneration upon ceasing to be al Member by reason of: i) election defeat; ii) resignation; ill) leaving office; iv) election to another govc:rnment body; or v) dying while in office if the Member is 65 years of age or over and not eligible to receive benefits under the City's group life insurance program; b) No Member shall be entitled to receive severance remuneration who ceases to be a Member by reason of, or by resignation which, is a result of or given in anticipation of: i) removal from office by judicial process; or ii) notwithstanding Section 6(a)(iv) above, disqualification under or operation of any Act of the ParlWlIIlent of Canada or the Legislature of the Province of Ontario. 103 c) Severance remuneration shall be equal to one month of salary for a Member, times the number of years of consecutive, uninterrupted :full service of the Member, to a maximum amount payable of24 months remuneration. d) A written application for severance remuneration must be received by the Clerk within six calendar months of a Member ceasing to be a Member, otherwise any entitlement to severance remuneration shall be forfeited. 7. a) For Members who have completed fifteen years of continuous service and cease to be a Member for the reasons set out in Section 6(a)(i to v), the Corporation shall pay 100% of the premium cost of the Extended Health, Dental and Vision Care Benefit Plans until the Member attains age 65. b) The Corporation will continue to pay 100% of the premium costs of the Extended Health. Dental and Vision Care Benefit Plans in respect of a Member's surviving spouse and dependents for up to twelve (12) calendar months following a Members death while in service. BY-LAW read a:first, second and third time and finally passed this 24 day oflune, 2002. ..... ..;.......~....:.....#.. ....... .... -...- ......-,."" "", -=--=~ /6..?-'--~ "- ~-~ ~- Wayne urs, Mayo~ ~ .::::.. ~ : -.;.; ~ L... Cl......>~:...._...~.;.(.: ,~/ ~ '. -..:.::,"'" ;.".:"'- ....,. .. . .... . ....:-:. .". .-' ,," . ,>' .lfroce Taylor, Clerk 104 THE CORPORATION OF THE CITY OF PICKERING BY-LA'N NO. 6452/05 Being a by-law respecting Council salaries, benefits, allowances; and communications. WHEREAS the Municipal Act, 2001, S.O. 2001, c.25, as amended, allows for thel payment of remuneration and expense:s to Members of Council and local boards, including the option to provide that one-third of the taxable remuneration and expenses; be deemed as expenses incident to the discharge of their duties for income ta)(: purposes; NOW THEREFORE THE COUNCIL OIF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLL.OWS: 1. Section 2 of By-law Number 59619/02 is hereby deleted and the following is substituted therefore: 2. (a) The remuneraticln payable to the Mayor shall be $63,654.00. (b) Commencing on January 1, 2006 and on every J;anuary 1st thereafter, the annual salary of the Mayor shall be increclsed at the same rate/percentagE. provided to those employees covered by the Collective Agreement for CUPE Local 129 on April 1st of the immediate preceding year. 2. Section 3 of By-law Number 5999/02 is hereby deleted and the f4::>lIowing is substituted therefore: 3. (a) The remuneration pa)'able to a Councillor shall be $26,52:3. (b) Commencing 011 January 1, 2006 and on every January 1st thereafter, the annual salary of a Councillor shall be increased at the same rate/percenitage provided to those employees covered by the Collective Agreement for CUPE Local 129 on April 1st of the immediate preceding year 3. Section 4 of By-law 5999/02 is hereby deleted and the following is substituted therefore: 4. (a) A Councillor shall be paid a per diem rate of 1.0% of their annual salary for a total of ten days for attending a full day meeting, workshop, seminar or convention. (b) Per diem payments payable to Councillors shall be paid monthly. Per diem payments shall cease on the last day that the Councillors remains in office and snail be pro-rated accordingly. 4. The daily allowance for expenses incurred at conventions shall be $60.00 per day. 1.05 5. Section 7(a) of By-law Number 5999/02 is hereby deleted and the following is substituted therefore: 7. (a) For Members who have completed fifteen years of continuous service and cease to be a Member for the reasons set out in Section 6(a)(1 to v), the Corporation shall pay 100% of the premium cost of the Extended Health, Dental and Vision Care Benefit Plans until the Member attains age 70. 6. That one-third of the remuneration paid to Members of Council and local boards of the municipality is deemed as expenses incident to the discharge of their duties as Members of Council or the local board. 7. This by-law shall take effect on January 1, 2005. BY-LAW read a first, second and third time and finally passed this 17th day of January, 2005. ~ David RY~ ,/7 ~ /~. '~L- . ". # .,-' ..{~"" ", .-. -.-'........ .0" .. Btuce Taylor, Clerk CiilJ (J~ REPORT TO EXECUTIVE COMMITTEE Report Number: CS 46-07 Date: November 12, 2007 From: Gillis A. Paterson Director, Corporate Services ,& Treasurer Subject: 2008 Standing CommittHe and Council Meeting Schedule Recommendation: 1. That Report CS 46-07 of the Director, Corporate Services & Treasurer be received; 2. That the 2008 Standing Committee and Council Meeting Schedule included as Attachment 1 to this report be approved; and 3. That the City Clerk be given authority to give effect thereto. Executive Summary: In accordance with the Municipal Act, 2001, every municipality and local board shall pass a procedure by-law for governing the calling, place and proceedings of meetings. The by-law provides for the notification of tile meetings of Council. Financial Implications: There are no financial implications. Sustainability Implications: Establishing the Standing Committee and Council schedule is an integral part of a sustainable community in the areas of a healthy society and healthy community as the promotion of the dates in advance encourage public participation. Background: By-law 6746/07 provides for governing the calling, place and proceedings of meetings. In accordance with the intent of the Municipal Act, of open, transparent and accountable government, the 2008 meeting schedule is presented in order for public notification to commence. Report CS 46 -07 Subject 2008 Meeting Schedule Date: November 12, 2007 Page 2 107 Attachments: 1. 2008 Standing Committee and Council Meeting Schedule Prepared By: Approved I Endorsed By: ..-,-C;;<y~ ..---- Gillis A. Paterson Director, Corporate Services & Treasurer -~~ (}j o~o / ;( ~.l,(/tOCf) Debi A. Wilcox / City Clerk ; Attachment Recommended for the Pickering City Counc. /' ~ //" ::-~::-:/. / ~ "------- - ~._"',..~.,.~.... City of Pickering Legend VCAD 200~ ...., " COUNCIL AND STANDING COMMITTEE MEETING SCHEDULE o I Holiday/Office Closed .&. I Planning & Development Committee Meeting @ I Executive Committee Meeting I Cl I I Council Meeting A I Joint Planning & Development & Executive Meeting 2 6 A 8 13 0 15 20 ICLI 22 27 28 29 9 10 16 17 23 24 30 31 A~ .............. - @13 18 ~ Icq 21 4 7 11 14 3 11 3 A 5 10 @ 12 ~ (Cll 20 21 12 6 18 19 13 25 17 26 24 25 26 27 28 8 A ~ in - ~.- 15 ICll 17 22 23 24 29 30 18 25 9 10 11 15 22 16 23 17 24 25 26 27 28 29 30 31 7 14 12 19 26 8 2 A 4 March Break 10 -14 9 10 11 12 8 ~8 @15 ICll 22 5 9 10 11 12 9 15 16 16 23 17 24 18 25 19 26 6 15 13 16 19 22 23 22 20 17 18 29 30 31 13 14 29 27 28 29 23 24 25 26 20 27 13 Icq 15 20 21 22 3 f?\ ~ 30 2 5 6 e 9 21 28 27 28 29 30 31 10 17 11 18 7 12 19 13 20 14 21 15 22 16 23 24 25 26 27 28 29 30 31 8 7 @ 9 14 ICll 16 21 22 23 28 29 30 c:;:) C) 7 @ 9 14 ~ 16 21 22 23 28 29 30 10 17 24 ~ 11 5 A 7 @@ 15 19 ICll 21 12 13 20 8 18 25 19 12 26 27 22 26 27 28 29 9 16 23 30 10 17 24 31 2 A 4 9011 16 ICll 18 23 24 25 11 18 25 30 5 12 19 26 6 13 20 27 7 14 21 28 15 22 29 10 11 12 17 18 19 @@@ G 13 20 27 REPORT TO EXECUTIVE COMMITTEE Report Number: CS 49-07 Date: November 12, 2007 l09 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Municipal Statute Law Amendment Act, 2006 (Bill 130) - Closed Meeting Investigator Recommendation: 1. That Report CS 49-07, of the Directo~, Corporate Services & Treasurer be received; 2. That Council authorize staff to advise the Ministry of Municipal Affairs & Housing that they will not be appointing a meetings investigator in accordance with Section 239.2 (1) of the Municipal Act, 2001 at this time, and will rely on the Provincial Ombudsman; 3. That staff monitor the Closed Meetings Investigator service delivery experiences of other municipalities over the next year and report back to Council by no later than December 1, 2008; and 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions to give effect thereto. Executive Summary: Bill 130, the Municipal Statute Law Amendment Act, 2006 came into force, with some minor exceptions on January 1,2007. The Act reflects new legislation for municipalities respecting accountability and transparency, including the appointment of an investigator with respect to complaints regarding closed meetings. If a municipality has not appointed a meetings investigator prior to January 1, 2008, complaints will be investigated by the Provincial Ombudsman. Financial Implications: There are no financial implications. Sustainability Implications: Municipal governments are now required to accountable and transparent, and therefore hold and conduct municipal business in public, which lends to a sustainable community. Report CS 49-07 November 12, 2007 Subject: Closed Meetings Investigator Page 2 11 0 Background: The Minister of Municipal Affairs and Housing has stated that for a municipal government to be transparent and accountable, it must hold and conduct municipal business in public wherever possible, with meetings being c1osE~d to the public only under narrowly prescribed ins.tances outlined in the Municipal Act, 2001. The Act also requires public notice for all meetings regardless of whether it is open or closed; and there must be a record for all meetings held. These requirements are also applicable to the new education and training provisions contained in the legislation. Municipal Councils are required to give public notice of all upcoming meetings. Under Section 238 (2.1) of the revised Act, muniGipalities must amend their procedural by-law to provide for the public notice of meeting:), which in the past was handled through the public notification policy, which centralized all forms, manners and times for notices required under various provisions of the Act. As a result of Bill 130, any provisions for public notice relating to Councilor committee meetings are to be set out in the procedural by-law, regardless of whether or not they also appear in another policy or by-law, such as a general notice by-law. Staff prepared a discussion paper on governance structure and the procedural by-law at the February 2007 Strategy Sessions of Council, which outlined the requirements that were forthcoming as part of Bill '130. Based on the discussion, a new governance structure was implemented and Procedural By-law No. 6746/07 was passed, which outlined the public notice provisions for all meetings regardless of whether thE~ meeting was open or closed. Based on the chalnges, a committee is now defined as 'any advisory or other committee, subcommitteE~ or similar entity of which at least 50% of the members are also members of 1 or more councils or local boards'. Staff implemented these provisions for the Advisory Committees, including orientation trainin~g for the volunteer members of the Committees. Therefore, the City is in compliance with the meeting notification provisions. It should be further noted that minutes are to be kept of all Council and Committee meetings, both open and closed. This mandatory provision came into effect on January 1, 2007 and the Clerks Division has effectively administered this provision across the City, including ensuring that all minutes are recorded without note or comment. The obligation for ensuring meetings are properly recorded rests with the City Clerk, and this obligation has been reflected within the procedural by-law. In addition to the existing authority to close meetings, a meeting may now be closed to the public for the purposes of educating or training the members, provided that the business or decision making of a Council is not materially advanced during these meetings. Such closed education and training meetings must be advertised and a record of the meeting must be recorded by the Clerk. CORP0227-07/01 revised Report CS 49-07 November 12, 2007 Subject: Closed Meetings Investigator Page.3 I . 1 1 1 The amended Act also requires that all municipalities have a non-court process whereby the public can request an investigation to determine compliance with the meeting rules, specifically whether rules in the procedural by-law and the Act have been followed. Council can appoint a meetings investigator to respond to public requests and they can appoint on their own, or jointly with other municipalities. In the absence of such an appointment by December 31, 2007, the Ontario Ombudsman assumes this role by default. Staff are recommending that the Ontario Ombudsman assume this role by default based on the following comments. When considering this requirement of the Act, the principles that are to be considered in appointing a meeting investigator are: . The investigator's independence and impartiality . Confidentiality with respect to the investigator's activities, and . Credibility of the Investigator and the investigation process. Provincial Ombudsman: The Provincial Ombudsman has jurisdiction to investigate a complaint that a municipality failed to open a meeting to the public, however anonymous complaints will not be investigated. Most complaints are resolved quickly by the Office's 'Early Resolution' staff, noting that once the Ombudsman receives the complaint, they assume the jurisdiction over it. The Ombudsman's Office will conduct an initial review regarding open meetings, as per the investigative powers of the Ombudsman Act. If the Ombudsman concludes, after an investigation, that there was a contravention of the procedural by-law relating to a closed meeting, or that the closed meeting provisions were contravened, he may report his opinion and reasons to the City and make recommendations to address his concerns. It should be noted that the Ombudsman has no ability to impose sanctions and/or penalties, and further, the Ombudsman's 2006/2007 Annual report states that they will monitor results of investigations conducted by municipalities to ensure new rules applied in a fair and consistent manner across the Province. In reviewing the option of the Provincial Ombudsman as the meetings investigator, staff noted that the Office of Ombudsman is already established and has sophisticated complaints investigation processes in place and further, municipalities are at arms length from all investigations. There is no cost for the investigations by the Provincial Ombudsman in keeping with the tradition of ombudsman around the world to ensure this service is accessible to everyone. The Clerks Division has been diligent in ensuring the provisions of the procedural by-law are followed, therefore the City is already being open and transparent, so conversely due to the fact minimal complaints are anticipated, this is the most cost effective and efficient option at this time. CORP0227-07/01 revised Report CS 49-07 November '12, 2007 Subject: Closed Meetings Investigator ~2 Page 4 Council Appointed Investiqator Municipalities can avoid investigation by the Provincial Ombudsman by appointing their own closed meeting investigator. This may be the route to go once staff have experienced and reviewed the new legislation impacts during 2008, however, staff believe it is premature to go this route at the present time. If the City wishes to appoint its own investigator, it would have to enter into a formal agreement with an individual to investigate any closed meeting complaints, which would be processed initially through the City Clerk's office. Naturally, retainer 'fees and investigative costs would be negotiated as part of the service agreement. Due to budget constraints, there are no funds for this services included in the 2008 draft budget. AMO - LAS Investiqator Proqram AMO's Local Authority Services Ltd. (LAS) issued a survey to municipalities in mid May to determine if there was any interest in pursuing the appointment of an investigator through the Local Authority Services Ltd. (LAS). AMO announced at the beQlinning of July that it had a favourable response to such an appointment and they would be pursuing it further. LAS has contracted with a third party company called 'Amberley Gavel Ltd.', which is a business owned by Nigel Bellchamber and Fred Dean and their responsibility is to deliver investigative services. At present, the agreement is for two years and the municipality would be required to pay a retainer fee to join the program and a daily investigative rate for investigations undertaken. The retainer fee that has been negotiated for participating municipalities i8 $600.00 and the cost of an investigation is $1,250. per day, excluding out of pocket expenses such as travel, meals, translation and administrative costs. As part of the program, Members would be proviided with ongoing education information related to the 'Closed Meeting' provisions of the Act and access to all completed reports through a password protected website. The,re would also be access to a pool of trained Review Officers. Although a number of municipalities are pursuing this avenue, this is an option that is not recommended by staff to be pursued at this time due to the cost involved and the uncertainty of how many complaints the City would in fact receive. Council should also be aware that they would have no involvement in the selection of the investigator and no funds at the present time have been provided in the draft 2008 budget. In summary, staff support the Provincial (Ontario) Ombudsman to be the City's Closed Meeting Investigator, and will closely monitor this situation during 2008. CORP0227-07/01 revised Report CS 49-07 November 12, 2007 Subject: Closed Meetings Investigator Page 5 f' 11 3 Prepared By: ~ h:~:::\. G::\ .~~ Debi A. Wilcox I City Clerk ~t:~ Andr w Allison City Solicitor Approved I Endorsed By: A. . . :-~.~'''-.'"".-- .'"~- . . -:?,"::-. ~~".- --<-'" --,/..._~--::,..,---~ ::.--' " . -- --,--- '~--"" <---Gillis A. Paterson Director of Corporate Services & Treasurer DW:lr Attachment Copy: Chief Administrative Officer Recommended for the consideration of Pickering City cil II ---.- CORP0227-07f01 revised REPORT TO EXE:CUTIVE COMMITTEE , . 11 4 Report Number: CS 54-07 Date: November 12, 2007 From: Gillis A. Paterson Director, Corporate Selrvices & Treasurer Subject: Request to Amend Body-Rub Parlour By-law Grant Morris Associates Ltd on Behalf of Christopher Trzcinski 1630 Bayly Street, PickE~ring Recommendation: 1. That Report CS 54-07 of the Director, Corporate Services & Trieasurer be received for information; and 2. That the City Clerk be directed to forward a copy of Report CS 54-07 of the Director, Corporate Services & Tmasurer to Grant Morris Associates Limited. Executive Summary: The City Clerk has received correspondl3nce dated October 9, 2007 from Grant Morris Associates Ltd. with respect to a request to amend By-law 6649/06 to increase the maximum number of body-rub parlour licenses to 4 from the existing 3 within the by- law. Financial Implications: There are no financial implications at this, time. Sustainability Implications: There are no sustainability implications. Background: By-law 6649106 provides for the licensing, regulating and governing of body-rub parlours within the City of Pickering, in slccordance with the provisions of the Municipal Act. In 2005, there was an extensive review of the existing body rub parlour by-law, which included detailed discussions with interested parties, such as the Durham Regional Police Service and two public meetings on the by-law review. Based on the Date: November 12, 2007 Page 2 r 1 5 public consultation and review, By-law 6649/06 was passed, which included a provision for three body-rub parlour licenses. Report CS 54 -07 Subject: Request to Amend Body-Rub Parlour By-law During the public consultation and review of the body-rub parlour by-law, it was determined that three licenses was appropriate for the City due to the extensive administrative and enforcement requirements related to body rub parlour licensing. Body Rub Parlours have a substantial turn over in staff and licensing all owners, operators and attendants requires a significant amount of staff resources. Inspections must also be coordinated with the Durham Regional Police Service in order to ensure Municipal By-law Enforcement Officer safety. It was also noted during this discussion that when the by-law was reviewed in the future, that the schedule defining the area that permitted body rub parlours may operate should be re-evaluated in order to ensure that operations of this nature did not front on a major arterial highway. Grant Morris Associates Limited is acting on behalf of Mr. Christopher Trzcinski, owner of 1630 Bayly Street, who wishes to pursue a body rub parlour license for this subject property. At present, there are three available licenses in accordance with the by-law. The licenses have been issued to Pickering Angels (905 Dillingham Road, Unit 3), Pickering Spa (1050 Brock Road, Unit 10) and Aristocrats Health Spa (1895 Clements Road, Unit 16). This year has been a relatively quiet period for enforcement as two of the three licensed body rub parlours have experienced issues which have prohibited them from operating. Pickering Spa has building permit issues which have prohibited them fro operation and Aristocrats Health Spa was shut down due to the large methadone fire at 1895 Clements Road. Although Pickering Angels was given approval to enlarge their facility in early 2007, it has not been completed to date. Due to this uncertainty with the existing three licenses and the possibility that one license may not be renewed in 2008 (Aristocrats Health Spa), it is possible that a license will become available in 2008, which would then be available for Mr. Morris' client. Based on the circumstances currently surrounding the existing three licenses, it is the staff opinion that the by-law remain in its present form and Mr. Morris' be advised accordingly. Attachments: 1. Correspondence dated October 9, 2007 from Grant Morris Associates Ltd. Prepared By: Approved I Endorsed By: ~.,~ Debi A. Wilcox City Clerk /-'-;z~_........~ '- ~~~ Gillis A. Paterson Director, Corporate Services & Treasurer Report CS 54 -07 Subject: Request to Amend Body-Rub Parlour By-law Date: November 12, 2007 Page 3 I' 11 6 Attachment DW/lr Recommended for the Pickering Ci Council ,E fFHHllffJ(HnJ ~~~;~1 TOWN PLANNING · ARBITRATION · LAND MANAGEMENT · INDUSTRIAL DEVELOPMENT CANADA · USA · CARRIBBEAN GST N2 R1304-7754 File No. CT.02 2007 1009 Debi Bentley Clerk City of Pickering One the Esplanade Pickering, Ontario LIV IE6 ~'-!(J "t"1 ',- ':.i -~; e'i::7',=i 1 < ','-''", " ' ,.,J 'A, I. ,""j ,'f\. ""." 'J ,!:I '\ 11' /"," """", I . -....,. .!.t...,~ '4 -it-;) ;i'~:..,.}f~..;. Re: Request to amend Municipal By-law 6649/06 to provide for a maximum of four licenses to be issued for body rub parlours in the City of Pickering Dear Madam: 1.0 Retainer: Christopher Trzcinski is the owner of 1630 Bayly Street in the City of Pickering. Mr. Trzcinski has engaged the services of my company, Grant Morris Associates Ltd., to pursue a body rub parlour license at 1630 Bayly Street. 2.0 Location: 1630 Bayly Street has a free standing structure which was used many years agQ for residential purposes. With the advance of commercial development in the area, this house was converted into a credit union about 15 years ago. Today there are no residential uses within close proximity of the site. Hence, the site with its small parking lot makes it suitable for a ORI ~INAL-." ~ parlour use. l.Q:...-..~ 'DL.:) copy , , ~ TO: A. AIII.son 3.0 The Issue: k, TkO." 6D r.... 'I , -...~1 At the time of my client's application to amend the zoning by-l w 0 perm! a body rub parlour as a permitted use, the municipal by-law re rub establishments, No. 5764/00, in the City defined the area AJov i C( I ('J'T (:ol2J?., CORR. P.E:FEfL To Ev. Com PI R...E.C TOR. I C.$.::P -r 10 TAKEAPPR.ACTlON SPECIALIZED PLANNIG & DEVELOPMENT CONSULTING SERV C FlU! .,~ .... ".... '.'.; . ,,... -.-., .,,-:,,)",: .J.,,.:..~.,:.;l. '. De~ifBntley, Clerk. establishments may be permitted to operate but the by-law did not limit the number of licenses that could be issued by the City. Council also had before it two am'ending zoning by-law applications to permit body rub parlours, one at 1630 Bayly Street and the other at Unit 25, 1050 Brock Road, when it passed By-law 6649/06 limiting the number of licenses for such a use in the City to three (3). The events and the manoeuvring which unfolded were unprecedented, resulting in my client having a legal body rub parlour use for its premises with no licensing opportunity. 4.0 Backf!round: In support of my request to Council, on behalf of my client, it is necessary to set out the background to this issut::. Prior to October 16th, 2000, body rub parlours in the City were not limited. to a defined area. With the passage of Municipal By-law 5764/00 on October 16th, 2000, however, the defined area where body rub parlours could locate was established and the need to obtain a license for such use was also established. Council, in recognition of the existing body rub parlours within its corporate limits, provided those existing body rub parlours an opportunity to be licensed but gave them until the end of 2005 to locate to the defined area. 1430658 Ontario Ltd. (Pickering Spa) was already operating outside the defined area and sought to move its operation within the defined area at Unit 25, 1050 Brock Road. To do this, on JuJly 25t\ 2005, Pickering Spa applied to the City for an amendment to By-law 2511 to allow a body rub parlour as a permitted use at Unit 25, 1050 Brock Road. At the public meeting held on January 191\ 2006, the applicant indicated that it was planning to serve men, women and children, contrary to the body rub parlour by-laws which define the industry as adult entertainment for 18 years and over. I understand that objections were received for this application from the public, plaza tenants and neighbouring businesses. On April3rd, 2006, Council denied the application, resulting in the matter being appealed to the Ontario Municipal Board on April 21 st, 2006. 2 Debi Bentley, Clerk 11 9 Also, on December 191\ 2005, my client applied to the City of Pickering for an amendment to By-law 2511 to permit a body rub parlour at its premises at 1630 Bayly Street. At the public information meeting held on March 23rd, 2006, no one appeared in opposition and no written comments opposing the application were received from residents or from any agencies. As a result, Council passed By-law 6673/06 on June 5th, 2006. Council's decision was appealed to the Ol\1B by the owners of the Pickering Spa (Unit 25, 1050 Brock Road). 5.0 Hearine of the Appeals bv the OMB and Decision: The Board heard the appeal against the Pickering Spa amending by-law on August 8th, 2006. The Board's decision allowed the appeal thereby paving the way for a body rub parlour use at Unit 25, 1050 Brock Road. Given the Board's decision, Pickering Spa moved quickly and applied for a license which City Staff was compelled to issue. Since this was the only available license, Pickering Spa vacated its objection to 1630 Bayly Street application leaving only the appeal by Dr. Martin of the Safeway Worship Centre to be heard by the Board. It is interesting to note that the Safeway Worship Centre is located adjacent to the proposed Pickering Spa body rub parlour, yet Dr. Martin did not object to its use. On April 12th, 2007, the Board heard the appeal against the proposed body rub parlour use at 1630 Bayly Street and dismissed the appeal. The Board found that there were no valid planning grounds for the appeal. The Board Order No. 1138 confirmed its decision thereby affirming the approval of By- law 6673/06 which permits a body rub parlour use at 1630 Bayly Street. 6.0 Municipal Bv-Iaw Amendment 6649/06: It is crucial to note that Council had before it two by-law amendments for body rub parlour use when it passed Municipal By-law 6649/06 in April, 2006. This by-law provided for body rub parlours in the City to be licensed and limited the number of such establishments to three (3). It was evident from the passing of By-law 6649/06 that Council intended to limit the number of body rub parlours that could operate in the City, provided they are located within the defined area as set out in By-law 6649/06. 3 Debi Bentley, Clerk 120 7.0 Intent of Council: It is also clear from Council's decision to pass By-law 6673/06 (my client's amending by-law) while denying Pickering Spa's amending by-law, that Council intended that the third license would have been given to my client. However, the Board's decision to approve the Pickering Spa amending by- law pre-empted Council's decision,. resulting in Staff having no choice but to award the third and only remaining available license to the Pickering Spa at Unit 25, 1050 Brock Road. It is also dear from the Staff recommendations and the decisions of the Ontario Municipal Board that both locations for body rub parlour uses are permitted by the Regional Official Plan and the City of Pickering Official Plan and are within the defmed area of By-law 6649/06 which Sl~ts out where body rub parlours can be located in the City. 8.0 Request of Council: The question here is not whether the use is permitted or the morality of the use, but the manner in which the use can be implemented. My client's application followed the proper by-llaw amendment process, was passed by Council and the appeal was dismissed by the Ontario Municipal Board, thereby confirming Council's decisi.on. Having said this, we must also recognize that the Pickering Spa followed the proper planning process to achieve its bOidy rub parlour use and license at Unit 25, 1050 Brock Road. As a Planner, I have a responsibility to support the planning process and to find ways to resolve issues which threaten the integrity of said process. In fairness to my client and because of the events which unfolded were beyond his control and given that my client went through the proper planning process resulting in the by-law being legally amended to permit a body rub parlour use at 1630 Bayly Street and given that my client has been working with Staff for site plan approval and has expended monies in this respect and given that my client has been paying taxes, mortgage and insurance on the property which has remained vacant for over two years, I believe that Council has a responsibility to assist in the resolution of this unforeseen situation. 4 Debi Bentley, Clerk I therefore respectfully ask that Council amend Municipal By-law 6649/06 to providefor a ma.:t:imum offour (4) licenses to be issued for body rub parlours in the City of Pickering instead of three (3). This, in my view, would be a fair way of resolving the issue under the circumstances. If required, I shall be available to make a presentation to Council. Yours very truly ~ Grant Morris Planning Consultant c.c. Mayor Dave Ryan Bonnie Littley, Regional Councillor Ward 1 Bill McLean, Regional Councillor Ward 2 Rick Johnson, Regional Councillor Ward 3 Jennifer O'Connell, City Councillor Ward 1 Doug Dickerson, City Councillor Ward 2 David Pickles, City Councillor Ward 3 5 1 21 CiUI ,,~ REPORT TO EXECUTIVE CQIMMITTEE Report Number: OES 41..07 Date: November 12, 2007 From: Everett Buntsma Director, Operations & Emergency Services Subject: Tender No. T-10-2007 - Playground Construction File: A-2130 Recommendation: 1. That Report OES 41-07 of the Director, Operations & Emergency Services regarding Sunbird Trail Park Development and Whites Road Bus Loop Plantings and playground construction, playground equipment, and safety surfacH material be received; and 2. That Tender No. T-10-2007 as submitted by Colpac Construction Inc. for playground construction in the amount of $38,099.00 (excluding GST) be accepted; and 3. That the total estimated project cost of $400,000 (excluding GST), be accepted; and 4. That Council authorize the Diirector, Corporate Services & Treasurer to finance the estimated total project cost in the amount of $400,000 as follows: a. the sum of $216,315 be funded from the Development Charges Reserve Fund - Parks; b. the sum of $36,685 be funded from the City's Share - Development Charges (DC) Reserve; c. the sum of $147,000 be funded from Parkland Reserve Fund d. the Treasurer is authorized to take any actions necessary in order to effl3ct the foregoing; and 5. Further, that the appropriate officials of the City of Pickering be authorized to tclke the necessary actions to give effect thereto. Executive Summary: In the 2007 Capital Budget Council approved the construction of new playground facilities in two new City parks, as well as required upgrades to existi.ng facilities. The projects that were approved were Sunbird Trail Park Development and Whites Road Bus Loop; and Playground Equipment Replacements, New and Upgrades. As part of the implementation of our new playground equipment installation program two (2) parks were identified for this year's installation. Report OES 41-07 November 12, 2007 Subject: Tender T -10-2007 Playground Construction Page 2 1-2 3 1. P-047 -Clearside Court Park - Brock Road and Third Concession Road area 2. P-051 -Sunbird Trail Park - Whites Road and Sunbird Trail area The parks will be developed to include new play equipment designed to comply with the National Standard of Canada: CSA Standard CAN/CSA-Z614-03 (updated August 2004), Children's Playspaces and Equipment. RFP-4-2007 includes the supply and installation of play structures and swing sets in City of Pickering parks. The installation of this equipment is required for two new parks where currently there is no playground equipment. T -10-2007 includes the construction of playground areas and pathways in the two new City of Pickering parks. Park construction items typically include the development of concrete curbed play areas, concrete pads for bench and waste receptacles, the installation of asphalt pathways and related park items that may be required, such as drainage systems, trees, topsoil, and sod. The terms of the contract allow the City of Pickering to draw on the contract unit prices to complete additional park construction works as required. IFQ-55- 2007 includes the supply and installation safety surface material in the two new City of Pickering parks. Other project costs that have been identified include the supply and installation of standard park benches and waste receptacles and P-gates at Sunbird Trail Park. It is recommended that work required for these items be obtained in accordance with the Council approved Purchasing Procedures and policy. Financial Implications: 1. TENDER AMOUNT Sunbird Trail Park Development & Whites Road Bus Loop Plantings - Account 5780.0706.6129 (New Park & Playground) T-10-2007 Playground Construction (Portion) RFP-4-2007 Playground Equipment (Portion) IFQ-55-2007 Safety Surfacing (Portion) Benches & Waste Receptacle Consultant Fees Material Testing (Estimated) Miscellaneous Costs (P-Gates, etc.) Contingency Sub Total $18,983 29,039 4,014 3,787 5,000 1,000 2,000 6.177 $70,000 Other Estimated Costs future works CORP0227-07/01 revised Report DES 41-07 Subject: Tender T -10-2007 Playground Construction I -12.A November 12, 2007 Page 3 Asphalt Walkway to Bus Loop Walkway Lighting to Bus Loop Grading & Drainage Works TRCA Planting Requirements Sub Total Total GST Total Gross Project Cost GST Rebate Total Net Project Cost Playground Equipment Replacements, New and Upgrades Account - 5780.0707.6129 Clearside Court Park (New Playground) T-10-2007 Playground Construction (Portion) RFP-4-2007 Playground Equipment (Portion) IFQ-55-2007 Safety Surfacing (Portion) Benches and Waste Receptacle Contingency Sub Total Diana Princess of Wales Park (additional equipment)) Playground Equipment (purchased -. 200jr installation) Miscellaneous Contingency Sub Total Village East Park (future grading and drainage improvements) Major Oaks Park (future relocation and upgrades) Sub Total Total GST Total Gross Project Cost GST Rebate CORP0227-07/01 revised 30,000 40,000 30,000 30 , 000 $130,000 $200,000 12,000 212,000 (12,OQQ2 $200.000 $19,116 18,441 8,697 3,786 ~60 $53,000 32,970 1,000 ~30 $37,000 55,000 55,000 $110,000 $200,000 12,000 212,000 (12,OQQ1 Report OES 41-07 November 12, 2007 Subject: Tender T-1 0-2007 Playground Construction Page 4 ITS 2. APPROVED SOURCE OF FUNDS Location Account Source of Funds Budqet Required Sunbird Trail (Whites 5780.0706.6129 Debt (10 Year) $200,000 $200,000 Road Bus Loop Plantings) Playground Upgrades 5780.0707.6129 Parkland Reserve 200 , 000 200,000 Fund FUNDS AVAILABLE $400,000 $400,000 3. REVISED FINANCING Source of Funds Development Charge Reserve Fund (90% ) Required $216,315 City's Share - DC Reserve (10%) 36,685 FUNDS AVAILABLE 147,000 $400,000 Parkland Reserve Fund 4. DETAILED BREAKDOWN - REVISED FINANCING Sunbird Trail Park Development & Whites Road Bus Loop GL Account - Financinq Source Amount 5780.0706.7620 Development Charges - Parks Reserve Fund $171,000 5780.0706.7022 City's Share - DC Reserve $29,000 Total $200.000 Playground Equipment Replacements, New & Upgrades -- CORP0227-07/01 revised Report OES 41-07 November 12, 2007 Subject: Tender T-1 0-2007 Playground Construction 126 Page 5 GL Account - Financinq Source Amount 5780.0707.7620 Development Charges - Parks Reserve Fund $45,2115 $7,Ei85 5780.0707.7022 City's Share - DC Reserve 5780.0707.7502 Parkland Reserve Fund $147,000 $200.000 Total The budget submission included debt financing for Sunbird Trail Park Development & Whites Road Bus Loop (5780.070E,.612H), which is no longer required as the project is related to a new park and plaYIJround construction. The project under Playground Equipment Replacement, New & Upgrades (5780.0707.6129) consisted of a new park, Clearside Court Park on which the fiinancing for this component ($53,000) is determined to qualify for the Development Charges Reserve Fund and City's Share-DC Reserve as well. Thus the original approved fundin!J of $200,000 from Parkland Reserve Fund will be reduced to $147,000 for Playground Equipment Replacement, New & Upgrades. Note that in addition to the 90% statutory restriction on funding from the developml3nt charges, 95% of the development charges funding is to be funded from residential component and the remaining 5% to be funded from commercial and industrial component. As the City does not collect commercial and industrial development charges for parks, this 5% funding will be funded from City's Share-DC Reserve. The "Revised Financing" summary as indicated above has incorporated this funding formula. Sustainability Implications: As part of the City's Sustainability initiative this project includes the supply and installation of playground equipment and safety surface material for the development of two new City parks., The rehabilitation of other parks identified will provide a much safer play area for park patrons. This project satisfies all three lenses of sustainability; social, environmental and economical. Background: Seven (7) companies were invited to submit bids for Tender T-10-2007 playground construction and five (5) responded at time of closing. The low bidder, Colpac Construction Inc. has not undertaken projects for the City in the past but a check of their references for projects have been deemed acceptable by the Supervisor, Engineerin~1 & Capital Works. The Health & Safety Policy, the CAD 7 form and Certificate of Clearance issued by the Workplace Safety & Insurance Board, as submitted by Colpac Construction Inc. has been reviewed by the Manager, Human Resource Services, and is deemed CORP0227-07/01 revised Report DES 41-07 November 12, 2007 Subject: Tender T -10-2007 Playground Construction 127 Page 6 acceptable. In conjunction with staffs' review of reference information and the bonding available on this project, the bid by Colpac Construction Inc. is deemed acceptable. Terms of Reference for RFP-4-2007 for the supply and installation of playground equipment were provided to seven (7) companies and six (6) companies responded at time of closing. An Evaluation Committee comprised of two members from the Municipal Property & Engineering Division and one from Supply & Services assembled to review, evaluate, and make a recommendation. Based on the evaluation criteria, Kompan received the highest score and is therefore, being recommended for the supply and installation of the playground equipment in 2007. The Health & Safety Policy, Workplace Safety & Insurance Board (WSIB) Council Amended Draft 7 (CAD 7) form, and Cost & Frequency Record issued by WSIB for Kompan has been reviewed by the Manager, Human Resource Services and is deemed acceptable. References as provided by Kompan for playground installations of this caliber have been checked by the Supervisor, Engineering & Capital Works and are deemed satisfactory. In accordance with the purchasing policy award is not subject to Council approval. Another product supplied by Kompan which was not part of RFP-4-2007 is the Kompan Galaxy GXY926 Miran Skate track system. This product design is exclusive to Kompan Inc. and was purchased for $32,970 (plus applicable taxes) as a single source product to supplement the Diana Princess of Wales Park skateboard facility. Four (4) companies were invited to submit quotations for IFQ-55-2007 for the safety surface material and three (3) companies responded at time of closing. Landsource Organix Limited was the lowest bidder. A check of their references for projects such, as these have been deemed acceptable by the Supervisor, Engineering & Capital Works. In accordance with the purchasing policy award is not subject to Council approval. Upon careful consideration of all tenders, quotations and proposals received, relevant documents received and pending, the Director, Operations & Emergency Services Department and Division Head, Municipal Property & Engineering Division recommend the acceptance of the low bid by Colpac Construction Inc. for Tender T-10-2007 in the amount of $38,099.00 (GST excluded), and other associated costs of $361,901 for future works as outlined in this report for a net total project cost of $400,000 be approved. This report has been prepared in conjunction with the Manager, Supply & Services who concurs with the foregoing. Attachments: 1. Location Maps 2. Supply & Services Memorandum - T-10-2007 Playground Construction 3. Supply & Services Memorandum - RFP-4-2007 4. Evaluation Criteria - RFP 4-2007 Playground Equipment 5. Supply & Services Memorandum -IFQ-55-2007 Safety Surface Material CORP0227-07/01 revised Report OES 41-07 November 12, 2007 Subject: Tender T-1 0-2007 Playground Construction 128 I . Page 7 Prepared By: Vera A. Fel emacher C.P.P., CPPO, CPPS, C.P.M., CMM III Manager, Supply & Services I'L. Ricp'ard W. Ho Division Head ,<:' "Municipal Property & Engineering DS:nw Attachments Copy: Chief Administrative Officer Approved I Endorsed By: . ....#tJ\!:-:~".,-'''..~..",.'''" /':1 _<f,T . /1 /''/ I . 'v /'" ,I / /" ./ I. ~'~..../ ' , ",/ . f." ' /! ./ /(_/ / I __- ,,/ ! . ,/ !.---- / \.......---;;... / I' // / Everett BuntsfTla 1/ Director, Operations & Emerg'ency Services , ==~.-- Gillis A. Paterson Director, Corporate Services ~~ Treasurer CORP0227-07/01 revised ~I' I ....c.. J ... ..Z.L~ _o.~~.. 41-01 p MUNICIPAL PROPERTY & ENGINEERING Attachment for Report: OES-41-2007 CLEARSIDE PARK ~ \ ~~ l_ROSSL~'~_ ROAD !.!~LRD CONC~~ \ - '\ ~. ~i0M~O~7~J~: ~ " ~ () ~ b02<'Ri" 0/ ~ '--- ~~/ ~ 0 ~ I {(-o'<; //~f ~ :b: C 0 / ~",) ", A "".0 ' V\ ~ ('\ ~ // (5/ ~~y ~~ 1 :[ ,I G~&?I;:J 'I ---Of' (" ~i>:C;;t' ~I \ () .' f> 0 I t:;'J\".j ~\\~~:::.--/'\J I ~ L._, (~<I / CJ ~ l,.\ \ . \-0\ l~ -0--;/ /' \0 f- \:l.-\\ CO\\0' '?-:;:<// () [-(')\ \\1\ 6 \ -::l\\ CO\' \0 /.;Jt;[---cJr'JDc.Rr'll L ~ I 9:..) \'f- S JEer l!J(/)' .(&\\.~) h.) :;/ COuR-('\ L0 0, 1)0 Z A \ 'J>\ ./ .J! _----.~ ( () 0 i -' () \ ':';,\ ~ [[) ( ~-.... - rl 01 I " ~ SOUTHcorr \ "d\ ~~"'T~EY L/.---~ Z ~I ~-,GIN.::> PARK ',' .)\ \ \:-Of~:-~~3Q;;; ,-i 5 ~'-='-11 CENTENNIAL ~ \ \ '-~! G;~--.~--....,,':T:; ~~:Lc!~(~~~ \cn [!] G \ ~"~ I \ ~\o?::'S:?-~ ~~ ~ (;; ~~ PARK 0 ~~, '------U j /' ~ \ /-'v-", ! r1 -/'2"" ,.._......)) ~=-~(', ",~v \ -I <"q. '\ \ >-.-/ ~ ,,('/- ! f'o., i2' ....---~ --., LOCATION MAP PROPOSED CONSTRUCTION INCLUDES: . ASPHALT PATHWAYS, CURBED PLAY AREA, PLAY STRUCTURE, SAFETY SURFACE, BENCHES. ~ "'"") <( u.. o z S o r- 1 29 I ":'~::PO" trl' "' ~eS 41...01 '.., l\k' f\ 1+ ;2....; '- '-_.',_"""".'.'<+>._,.:'.'..'i y~ """"""~""____""" MUNICIPAL PROPERTY & ENGINEERING 1 3 0 Attachment for Rleport: OES-41-2007 SUNBIRD TRAIL PARK / I r'~ c'n' LINT;"""").OK ___ '""",L.. ~:::>I-",'- -'-GQur~-r ~/ '\ Cl I' S~'-~~~~;~;-~---l " / . <1: /~/r:~PS\~) I / ....)' () L_.///C,.(A\~' CPr) / .~ ~( r/// / ~ 4c~.~,:'::1 \ . ",\3 I // ~, s0,vA /'/ o?- I/~?:=:~"J' ':( /' 0?-?-\0 1/// Il__~--J. z c,] I 1 J I .-----...-- I <l: /'. ./ If) f: I i [3 v/ 0~ .. LtJ ~!' II ~ /'/// BE~g~~Tt-~- f>-~~0 i-!; i--- // --{0\'?'0 ~/;:;; ~ \, ~ 'Jill c;-- o ~'\~//~( U i [1'/' ~/'...,-~~1 ~ t \ l COGNAC -. - / i C\2~/.\I~~.~..~-) II... "-,-'-., ) r ~ WHIS ~ I l -----..-....., //~_-LC37 1 GATE ( FINCti.._j~~VENUE._J l___.___ o <l: o [t LOCATION MAP PROPOSED CONSTRUCTION INCLUDES: . ASPHALT PATHWAYS, CURBED PLAY AREA, PLAY STRUCTURE, SAFETY SURFACE, BENCHES. !VIENT#__~.", TOREPORT# OE~ 4-\-0 7 I ,~ --L_ of CORPORATE SERVICES DEPARTMENT MEMORANDUM 1 31 October 3, 2007 To: Richard Holborn .,/ Division Head Municipal Property & Engineering ~J C,;\'Y . ..,.,.~ :~jHJ;\ii\~!PjU Pf10FEfHV & ENGH\H.:ttdf\il:t Darrell Selsky Supervisor, Engineering & Capital Works From: Barbara Tran Buyer Subject: Tender No. T-10-2007 Tender for Playground Construction CLOSING: Wednesday, October 3,2007 Tenders have been received for the above project. Seven companies were invited to participate. An advertisement was placed in the Daily Commercial News, News Advertiser and on the City's Website yielding interest from additional bidders and a total of 6 companies picked up a tendering package for a non-refundable fee of $50.00. One addendum was issued. Five {5} bidders responded and submitted a tender 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 10.03 (r) provides checking tendered unit prices and extensions; unit prices shall govern and extensions will be corrected accordingly, which has been done. All deposits other than the low three bidders may be returned to the applicable bidders as provided for by Purchasing Procedure No. PUR 010-001, Item 10.03(w). Therefore, the copies of bids from the low three (3) bidders are attached for review. Richard Holborn Tender No. T-10-2007 2.J TO REPO RT#_0 E"50 41-07 '2.. f 3 ctober 3, 2007 ---=-- 0 Page 2 132 SUMMARY (PST includE!d, GST included) Total Tendered Amount $ 40,384.94 50,811.10 65,985.53 70,636.81 77,704.36 UNABLE TO BID After Calculation Check $ 40,384.94 50,811.10 65,413.13 70,615.61 80,184.75 Bidder Colpac Construction Inc. Melfer Construction Inc. Slip-Form Construction Serve Construction Ltd. Ro alcrest Pavin & Contractin Ltd. Montgomery MacEwen Contractin Pursuant to Information to Bidders Item 21, the following will be requested of the low bidder for your review during the evaluation stage of this tender call. Please advise Supplv & Services as soon as possible! if we are to proceed in this direction. (a) a copy of the Health and Safety Policy to be used on this project; (b) a copy of the current Cost and Frequency Report issued by Workplace Safety & Insurance Board (in lieu of tl1e Cost and Frequency document, a copy of the current CAD 7, NEER, or MAP reports may be submitted); (c) a copy of the current CertificatE~ of Clearance issued by Workplace Safety & Insurance Board; and (d) the City's certificate of insurance completed by the bidder's agent, broker or insurer. (e) Waste Management Plan {Item 23, Information to Bidders} Include the following items in your Report to Council: (a) if items (a) through (e) noted above, are acceptable to the Manager, Human Resources Services; (b) any past work experience Colp81c Construction Inc. including work location; (c) without past work experience, if reference information is acceptable; (d) the appropriate account number(s) to which this work is to be charged; (e) the budget amount(s) assigned thereto; (f) Treasurer's confirmation of funding; (g) related departmental approvals; (h) any reason(s) why the low bid of Colpac Construction Inc. is not acceptable; and (i) related comments specific to the project. If you require further information, please feel free to contact a member of Supply & Services. . .1 ~ // )i). 0':) . ~,"-" .,'J $ , I ' / (If/ I_".f;, J. ',"; i ,',.' / l.,/I~ffljtt{lt"lt{/ ! ij{fL/' Barbara Tran Ibt Attachments Copy for: Director, Operations & Emergency Services CITY OF PICKERING RECORD OF TENDERS OPENED AND CHECKED Tender Description: Playground Construction Tender No.: T-10-2007 Date: Wednesday, October 3, 2007 Bidder Name Colpac Construction Inc.' Melfer Construction Inc. Royalcrest Paving & Contracting Ltd. Serve Construction Ltd. Slip-Form Construction Montgomery MacEwen Contracting Time: Approx.2:15pm Bid Deposit I Agreement I Total Amount to Bond Tendered for BIDDER'S SIGN IN COMMENTS -:bl3.,,\ n L. Other k:tendpay/record of tenders opened doc. lJJ ~ ~ , ';.XI I ,'T! ')~ 't,.,J.' "",:".-.;, .;i':".~, "d. lri~ liD ~m jCf\ .+- - , c --..1 ~ v-J v-J 3 _.,"",,1_,," 1 34 CORPORATE SERVICES DEPARTMENT dES tfl-07 :if...SUPF'L Y 8t SERVICES MEMOHANDUM _..-~... September 11, 2007 To: Richard Holborn Division Head, Municipal Property & Engineering From: Jill Hone Buyer Subject: RFP-4-2007 - Playground Equipment Terms of reference for the above request for proposal was provided to seven companies of which six responded by the deadline of 12:00 noon, Friday, Sept<ember 7, 2007. Proposals shall be irrevocable for ninety days after the official closing date and time. A summary and a preliminary compliance c11ecklist is as follows: a) Company identification and principal contact information b) Identification of similar work with refe rences c) Installer identification and experience profile d) Lump sum fee per playground e) Play area layout plan f) List of play components g) 3-D diagrams and or photos h) Product maintenance and installation details and warranty information Company a. b c d e f g h Belair Recreational Products Inc. x x x x x x x x Crozier Agencies x x x x x x x x Henderson Recreation Equipment x x x x x x x Kompan x x x x x x x x Play Power - L T x x x x x x x x Recreation Playsystems -- ,3 A... (d, _".~" September 11, 2007 .Qc~ t.f/-o 7age 2 RFP-4-2007, Playground Equipment A copy of each proposal is enclosed for your review. 1 35 An evaluation committee has been established to review the submittals. One copy of each proposal and a sample evaluation form will be provided directly to each member of the evaluation committee. Once a recommended vendor has been selected, Certificate of Insurance, WSIB Clearance Certificate and other documentation as required will be requested and reviewed by the Health & Safety Co-ordinator, for your consideration. A purchase requisition will be required in order to proceed. If you require further information or assistance, please feel free to contact me. try! I ~ / h" /1' ,1 7, i ,I ' ".) \;....1.,.\...../ JiJ H6ne /jh Attachments Copy: Supervisor, Engineering & Capital Works Co-ordinator, Landscape & Parks Development I nspector, Parks Company Name: PLAY EQUIPMENT RFP EVALUATION FORM Request For Proposal RFP-4-2007 Evaluation Date: ~ tN 0"\ Evaluator's Name: 1. number of components 2. . variety of play experience 3. age range 4. unique components 5. height ranges 4 1. an identifying element that is unique to each playground has been provided. 2. this element provides distinct differentiation. 3 1. theme/creativity 2. colour coordination/selection 3. roof/panel design 4. finishes/detailing 1. decks (size/materials/thickness) 2. p'osts (materials/size/caps) 3. rails/panels (materials/design) 4. joints/fittings (materials) 1. primary structure (posts, frame) 2. secondary structure (rails, panels) 3. poly components (slides, panels) 4. plastisol components (decks, stairs) 5. bearings/fittings 6. swing components 1. greasing/specialized equipment 2. ease of replacement parts 1. local representative 2. history/experience 3 3 3 2 2 ~ ~:'r \ i ~ t ~ !:-t'- .~{.,-, I i- t --1 o ~ -0 o ~ "~i ~ l~ I rn ! 1./'1 -t:. - i <J -.........! t,..~,. REPORT#~ 4/-07 I ",' " ~"_,,,,,",,".,~,,":.,,. !;,J{ -=j~-;' CORPORATE SERVICES DEPARTMENT SUPPLY & SERVICES MEMORANDUM 137 September 13, 2007 To: Richard Holborn Division Head, Municipal Property & Engineering Darrell Selsky Supervisor, Engineering & Capital Works From: Jill Hone Buyer Subject: IFQ-55-2007 Safety Surfacing Material Closing: Tuesday, September 11, 2007, 12:00 Noon Quotations were invited from four companies of which three bidders responded by the closing deadline. Copies are attached for your review. Quotations shall be irrevocable for 60 days after the official closing date and time. Pursuant to Supplementary Standard Conditions Item 7, the following documents will be requested once your recommendation has been received: (a) a copy of the Health & Safety Policy to be used on this project; (b) a copy of the current Workplace Injury Summary Report issued by Workplace Safety & Insurance Board (in lieu of the Workplace Injury Summary Report document, a copy of the current CAD 7, NEER, or MAP reports may be submitted); (c) a copy of the current Clearance Certificate issued by Workplace Safety & Insurance Board; (d) the City's certificate of insurance shall be completed by the bidder's agent, broker or insurer. Please review information provided and advise if the quotation submitted by Landsource Organix Ltd. is acceptable, or any reason(s) why the bid of Landsource Organix Ltd., is not acceptable; and any other related comments specific to the project. I"r:>, "T" ''''':::'- "l~{" '<i:C('ilT,,;,j A cS 4 J' -0 1 ,'lr:.I\I1 .f.;_.~."."., ~,' K.c:P ,.h," 1t,,~.J!t~"...." f ~.~:'_, of _.2.._~. IFQ-55-2007, Safety Surfacing Material September 13, 2007 138 PagEl 2 SUMMARY PST inc:ludec'/GST extra Company Product name Landsource Certified Wood Organix Ltd. Chip - Playcare Inc. Fibertop * ABC Recreation Fibar System 312 Ltd. *ABC Recreation Ltd.: Stone not included Su nbird Tail Clearside Extension Park Park 3,697.00 $4,014.00 $12,711.00 },880.00 $4,560.00 $14,440.00 4,718.60 *$6,860.40 *$2'1,57'9.00 T included. $~ $~ *$1 GS If this is part of a capital project code ttlat requires debt financing, please ensure you correspond with the Treasurer for appmval to proceed. An approved "on-line" requisition is required for Supply & Services to proceed. If you require further information, please feel free to contact me. Thank you. \.. Jill "5! ,i. ,', ,J /' ." I' I'J',~v/~// j/h Attachments em, o~ REPORT TO EXECUTIVE COMMITTEE Report Number: OES 29-07 Date: November 12, 2007 l--s9 From: Everett Buntsma Director, Operations & Emergency Services Subject: Pesticide Use By-law - File: A- 2130 Recommendations: 1. That Report OES 29-07 of the Director, Operations & Emergency Services be received; 2. That City staff organize, advertise and facilitate a public consultation process as set out in this report for the draft "Pesticide Use By-law"; 3. That City staff expand the social marketing & public education program pertaining to the draft "Pesticide Use By-law"; and 4. That local retailers be requested to offer more alternatives to pesticides that are clearly and prominently displayed within the store. Executive Summary: The City of Pickering is committed to a socially, economically and environmentally sustainable community and this is reflected in the City's turf and garden maintenance practices. Staff have continued to take an integrated approach to managing our properties and sports fields. Proper mowing and aeration, an irrigation system, regular de-thatching and the use of organic fertilizers have greatly reduced the need for pesticides. Various areas within the City's parks have also been naturalized to further reduce the need for treatments. The City of Pickering has taken its commitment to a sustainable community one step further. On February 19, 2007 Pickering Council passed a Notice of Motion called "Healthy Community, Healthy Lawns and Gardens" directing staff to do the following: . research the pesticide restriction by-laws that other Canadian municipalities have implemented BY-LAW NO I' 1-40 Page 2 . prepare a draft pesticide use by-law for consideration by the Executive Committee in June 2007, that prohibits the use of pesticides for cosmetic use on City-owned property and private properties, and establishes criteria for exceptions Staff was also directed to propose a plan to present the draft by-law to the public. A draft City of Pickering "Pesticide Use 13y-law" is attached to this report. Following public consultation and comment, a revised pesticide use by-law will be presented to Council for consideration. It is important that staff and Members of Council recognize that a significant barrier to the successful implementation of a pesticide use by-law is the enforcement aspect. While the introduction of a by-law prohibiting the use of pesticides is in keeping with our Sustainable Pickering principles, enf()rcin~1 such a by-law would be very difficult. Financial Implications: Recommendation #2: In order to organize, advertise and facilitate a public consultation process, approximately $10,000 is requirlsd and can be allocated to Account # 2430- 5320. Recommendation #3: In order to expand the social marketing & education program, additional funds will need to be allocated within future budgets. Recommendation #4: Outside of staff time, there is no financial implication to request the cooperation of local retailers. Sustainability Implications: Pesticide restriction is a contentious issue for many reasons, one of which is because the information pertaining to the environmental and health effects can vary depending on the source. However, as with any chemical, when misused pesticides can be a problem for both the environment :and human health and therefore, society overall. Ideally pesticide use restriction would reduce this problem however, that is only if the community abides by the pesticide restriction by-law. To assist the community transition from a reliance on pesticide products, City staff will use a variety of means to educate the community about proper lawn and garden care and alternatives to pesticides. With regard to the economy, by restricting pesticide use on municipal land and private property we are reducing the amount of pl9sticide based products that will be purchased from retailers as well as eliminating the ability for lawn care service providers to offer pesticide dependent care within Pickering. As a municipality, a pesticide use by-law would reduce our already limited purchase of pesticide products. At the same time, the community and municipality will need to increase the purchase of non-traditional pest control products and likewise will be increasing the demand for lawn care service providers that offer non-pesticide reliant sl9rvices. BY-LAW NO Page 3 1 4 1 non-traditional pest control products and likewise will be increasing the demand for lawn care service providers that offer non-pesticide reliant services. Background: Staff compiled pesticide use and by-law related information from 2 upper tier and 17 lower tier municipalities in Ontario. This information was useful in the development of the draft Pesticide Use By-law. It was evident while reviewing the other municipalities' reports that public consultation is essential and will assist staff to review and revise the draft pesticide use by-law. Therefore, public consultation will be undertaken with the general public and appropriate stakeholders such as pest control companies, pesticide retailers and specific pesticide users. Staff recommend that we coordinate the public consultation process using a consultant. This process is important to the overall development of a pesticide use by-law and should be done by an experienced impartial third-party. Subject to funding being available, a consultant will be retained to assist with the development of a questionnaire. The questionnaire will be used to collect residents' and stakeholders' opinion pertaining to the draft by-law. To improve accessibility, the questionnaire may be made available on-line and in addition, may be mailed specifically to stakeholders. The consultant will facilitate a public meeting. The information that is gathered from the questionnaire and the public meeting will be compiled and modifications to the attached draft Pesticide Use By-law will be itemized in a future Report to Council. All available means will be used to make the public and appropriate stakeholders aware of these opportunities for comment including, but not limited to, media releases, personal contact, community page ads, website postings, radio ads, and the Community LED board. If timing coincides, the Green Pages section of the City's Leisure Guide and community group newsletters will also be used to promote opportunities for awareness. A significant barrier to the successful implementation of a pesticide use by-law is the enforcement aspect. While the introduction of a by-law prohibiting the use of pesticides is in keeping with our Sustainable Pickering principles, enforcing such a by- law would be very difficult. To lay a charge for using prohibited pesticides, a Municipal Law Enforcement Officer would have to prove the contents of the pesticides being applied. A complaint from a neighbour who claims to have seen prohibited pesticides being applied will not provide the necessary proof. In situations where an officer was present to witness the application, it is still unlikely that samples of the material being applied could be gathered. There is also the issue of costs for lab tests to analyze the substance. In the City of Toronto, once certain pesticides were prohibited, commercial lawn maintenance companies switched to acceptable organic products. Should a company claim this is what they were using, it would be very difficult to dispute the claim. BY-LAW NO i" 1 A 2 ,f.! Page 4 Prior to the passage of any new by-law, it is always advisable to consider the practicality of enforcement. Staff have not been able to find an example Oof where a municipality in Ontario has successfully charged a resident for not complying with their by-law. Staff were advised that the City of Toronto has one charge against a landscape company. Because successful enforcement will be very difficult, it may bE~ a better option to adopt public awareness campaigns, promote acceptable alternatives. After the public consultation process is complete for this draft Pesticide Use By-law other viable options may present themselves. To date, significant effort has gone into promoting proper lawn and garden care techniques and alternatives to pesticides using a variety of means including educational workshops, information on the City's website and within the GrE!en Pages section of the City's Leisure GuidE~, Municipal Matters, and through Environmental displays. To elaborate, a section of the City's website entitled "Property Green Up" was expanded to include additional information pertaining to proper lawn care, pesticide use and alternatives. In April and May 2007, recognizable guest speakers that are considered experts in their fields were hined to speak at 3 educational workshops called "Healthy Lawns, Healthy Gardens". ThE! workshops were offered free of charge to residents and attendees could take home useful door prizes, organic lawn care kits, and literature from the City of Pickering's Environmental display and Toronto & Region Conservation Authority's Healthy Yards display. The workshops were very educational, entertaining and were successfully rEeceiv1ed by the public. Staff recommend that additional steps using other means founded around community- based social marketing be taken to educate the community about alternatives to pesticides and proper lawn and garden care. These initiatives will help residents learn how to minimize pest problems in the first place and therefore, reduce their f,eliance on pesticides. In addition, since it is not ille~lal to sell pesticides, the City will need to take steps to encourage retailers and service providers to provide readily available alternatives to consumers. These alternative products should be well advertised and displayed in prominent locations wilthin the store, their staff should be knowledgeable about the products and if possible literature should be available for the user to take home. The City has already been takingl an integrated approach to managing municipal properties. Proper mowing and aeration, an irrigation system, regular thatching and the use of organic fertilizers have reduced the need for pesticides and has encouraged the growth of strong and healthy turf grass. Various areas within the City's parks have also been naturalized to further reduce thE! need for treatments. These actions have significantly reduced the use of pesticidE~s on public lands over the last seven years. Staff continues to research up to date information, practices and new products that will provide quality turf grass with minimal pesticide applications required. It is a natural next step for the municipality to move forward and become IPM Accredited. BY-LAW NO Page 5 1-43 Through education about alternative products, encouraging proper maintenance techniques, and by working with local retailers, the perceived need for pesticides will be reduced. In some circumstances though, pesticides are a useful tool and will need to be applied. These situations are outlined through the exemptions component of the Pesticide Use By-law and are consistent with what other municipalities have enacted in their by-laws. One main concern regarding the Pesticide Use By-law, as it is currently written is that it will be difficult if not nearly impossible to enforce with the current financial and staff resources. The reality of this situation may cause frustration for residents who perceived and desired the Pesticide Use By-law as an ultimate solution to prevent their neighbours from spraying chemicals. Another aspect that poses difficulty is the lack of consistency. A consistent approach throughout the province and country would assist since the burden of enforcement would be alleviated from the municipal level of government. According to the Region of Durham's Report No. 2007-MOH-17 to A. Cullen and Members of Health & Social Services Committee, dated April 5, 2007, the Region of Durham used the Rapid Risk Factor Surveillance System (2001-2003 data) to determine that overall 62% of households in the Region of Durham with lawn, gardens or hard surfaces applied pesticides. It is not illegal to sell or possess pesticides. If a higher level of government enacted a consistent approach, it would increase the likelihood of successful pesticide reductions. This same Report goes on to indicate that one of the options that Regional Council may pursue respecting the reduction/regulation of the use of pesticides in Durham Region includes exploring the development of a Regional by-law in consultation with Durham's municipalities. While this may not have the same impact as a provincial or national law, it may be more effective than an area municipal by-law. Attachments: 1. Draft Pesticide Use By-law 2. Region of Durham Report No. 2007 -MOH-17 to A. Cullen and Members of Health & Social Services Committee, dated April 5, 2007 BY-LAW NO Page 6 , . 144 Prepared By: Approved I~. orS~d.. ~ /~- /' '</~/ d?'L/l'.~~~';(..)1- , . 7 ' f / Everett Buntsma \.../ Director Operations & Emergency Services Jo ' Hannah perintendent, Municipal Operations ('t t..~.S \, ,[:.' . ,.,'. . ~ _l' "'\-4..'-': t:.. ' ,\ .L.'-- Chantal Whitaker Coordinator, Environmental AwarenE~ss Programs CW:EB:mld Attachments Copy: Chief Administrative Officer " . -- S 2 ~,;.f)-7' .rJTACHMENT #_Lw T9~REPORT;:t flc:_:., , ('- --'--.., ()., .~~Jk~_~. THE CORPORATION OF THE CITY OF PICKERING 145 BY-LAW NO. Being a by-law to regulate pesticide use WHEREAS pursuant to paragraph 6 of subsection 11(2) of the Municipal Act, 2001, S.O. 2001, c. 25 municipalities may pass by-laws respecting the health, safety and well- being of persons; AND WHEREAS Council deems it necessary to regulate the use of pesticides within the City; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING ENACTS AS FOLLOWS: PART I-INTERPRETATION Definitions 1. In this by-law, (a) "City" means the Corporation of the City of Pickering or the geographic area of the City of Pickering, as the context requires; (b) "commercial applicator" means any person who applies pesticides for compensation; (c) "IPM accreditation" means accreditation in a recognized integrated pest management programme from the Integrated Pest Management Plant Health Care Council of Ontario, the Audubon Cooperative Sanctuary System of Canada, or a similar body approved by the City; (d) "officer" means a municipal by-law enforcement officer appointed by the City; (e) "person" includes a corporation and the heirs, executors, administrators or other legal representatives of a person to whom the context can apply according to law; (f) "pest" means any injurious, noxious or troublesome insect or other arthropod, fungus, bacterial organism, weed, or other plant or animal pest and includes any injurious, noxious or troublesome organic function of a plant or animal; and By-Iar ~% clT'''''C'HMEN1'ti / />,.:) t 11 j):, ,,,,' _ .. .' _ : r f ,_=v...~,.,~...7""",,,,,,,,,, d- ,-----..- "'''' ~1i::POR. ';" . " "'..' <;7,," ,', ""7 1\'::: , ! 'If _J.lfi:,::,,,,, C, ~I - (,/ ,> PagE3 2 (g) "pesticide" means a product, an organism or substance that is a registered control product under the federal Pest Control Products Act which is used as a means for directly or indirectly controlling, destroying, attracting or repelling a pest or for mitigating or preventing its injurious, noxious or troublesome effects, and for greater certainty only, does not include products listed in Schedule "A". References to Legislation 2. In this by-law, reference to any Act, regulation or by-law is reference to that Act, regulation or by-law as it is amended or re-enacted from time to time. Word Usage 3. This Agreement shall be read with all changes in gender or number as the context may require. 4. A grammatical variation of a word or expression defined has a corresponding meaning. Construction 5. Unless otherwise specified, references in this by-law to sections and schedules are to sections and schedules in this by-law. Severability 6. Each section of this by-law is an independent section, and the holding of any section or part of any section of this by-law to be void or ineffective for any reason shall not be deemed to affect the validity of any other section or parts of sections of this by-law. Application 7. This by-law shall apply to all lands and premises within the City, including lands owned by the City, By-law No. ATTACHMENT#_L.,. ..., ~., ""C.,- . J/" ,. " ...."'~ ""',-'" L/C': .,) y Ll- C i(H'Uhl;:f~,,:_..,' . . , Page 3 1 4 7 PART 11- USE OF PESTICIDES Prohibitions 8. No person shall apply or cause or permit the application of any pesticide within the City. Agricultural Exemption 9. Section 8 does not apply where the pesticide is discharged on agricultural lands used in furtherance of a normal farm practice carried on as part of an agricultural operation pursuant to the Farming and Farm Production Protection Act, 1998. Pest Control in Buildings 10. Section 8 does not apply where the pesticide is used for pest control within a residence or other building. Insect Infestation 11. Section 8 does not apply where the pesticide is used to diminish or control an infestation. For purposes of this section, "infestation" means the presence of pests in numbers or under conditions that involve an immediate or potential risk of substantial loss or damage to property. Public Health Exemption 12. Section 8 does not apply where the pesticide discharge is necessary in the opinion of the Medical Officer of Health for the Regional Municipality of Durham to address a health hazard. Noxious Weeds Exemption 13. Section 8 does not apply where the pesticide is discharged to destroy noxious weeds identified in the regulations to the Weed Control Act or any plant that has been designated as a noxious weed under a City by-law. Conservation Authorities Lands Exemption 14. Section 8 does not apply where the pesticide is discharged to control invasive species on lands owned or managed by a conservation authority established under the Conservation Authorities Act. BY-~4 ~o. t~,rTl\CI-H;1El\lT#_.,l TC] REPORTtt Of..~~::;):i-()7 -.I4-"..~.J/JL~_ Page 4 Golf Course and/or Driving Range Exemption 15. Section 8 does not apply where the pesticide is discharged on a golf course and/or golf driving range provided the applicator has an IPM accreditation. Utility Exemption 16. Section 8 does not apply where the pesticide is discharged within a hydro corridor, or at any hydro substation, gas distribution station or gas transmission station, provided the applicator has an IPM accreditation. General Exemptions 17. Section 8 does not apply where pes.ticides are used, (a) to disinfect swimming pools, whirlpools, spas or wading pools; (b) to purify water intended for the use of humans or animals; (c) as a wood preservative; (d) for injection into trees, stumps, or wooden poles; or (e) as an insect repellent fDr personal use. PART III - ENFORCEMENT Inspections 18. An officer may, at any reasonable time, enter upon any land for the purpose of carrying out an inspection to determine whether or not the provisions of this by- law have been complied with. 19. For purposes of an inspection, an officer may, (a) require the production for inspection of any document or things relevant to the inspection; (b) inspect and remove documents or things relevant to the inspection for the purpose of making copies or extracts; (c) require information from any person concerning a matter related to the inspection; and t' I .....,c... ,."s Te) prp')f)'li' ()ES ,>.?Cj';,6/ ~;'" \, ", '>.~-".,-' Page 5 149 By-law No. (d) alone or in conjunction with a person possessing special or expert knowledge, make examinations or take tests, samples or photographs necessary for the purposes of the inspection. 20. No person shall obstruct the officer inspecting or withhold, destroy, conceal or refuse to furnish any information or thing required by the officer. Penalties 21. Every person who contravenes any provision of this by-law is guilty of an offence and upon conviction is liable to a fine pursuant to the provisions of the Provincial Offences Act. PART IV - GENERAL Other Legislation 22. The provisions of this by-law are intended to complement the provisions of the Pest Control Products Act (Canada) and the Pesticides Act, and shall be enforced consistent with this intention. Short Title 23. This by-law may be referred to as the "Pesticide Use By-law". Effective Date 24. This by-law comes into effect on applicators. , 2008 only as it relates to commercial 25. This by-law comes into effect on January 1,2009 in relation to all persons. BY-LAW read a first, second and third time and finally passed this _ day of 2008. David Ryan, Mayor Debi Wilcox, City Clerk By-law No. -l 50 ""'''r"'''I.-'ME~I''l't;;, I .iiJd f\\~rl! I ~'" !1_....... I~ 1',; ---!..c_.... '." Co./"' " .... -7 /i' - '-.. - 1(7' '-/) ,( .f4,..;..:'::!. ex . v I Page 6 SCHEI)ULE"A" 1. A product that uses pheromones to lure pests, sticky media to trap pests or "quick-kill" traps for vertebrate species considered pests, such as mice and rats. 2. A product that is or contains only the following active ingredients: (a) a soap; (b) a mineral oil, also callecl"dormant or horticultural oil", (c) silicon dioxide, also called "diatomaceous earth"; (d) biological pesticides, inGluding Bt (bacillus thuringiensis) and nematodes; (e) borax, also called "boric acid" or "boracic acid"; (f) ferric phosphate; (g) acetic acid; (h) pyrethrum or pyrethrins;; (i) fatty acids; U) sulphur; or (k) corn gluten meal. :\':'_:~J'iE1",n/.,,_,,_~.... fOREPORT# OES 2 Q-07 -L_._of_L L. 1 51 Report To: Chair A. Cullen and Members Health & Social Services Committee Report No.: 2007.MOH-17 Date: April 5, 2007 SUBJECT: Regulation of Pesticide Use RECOMMENDATION: That the Health & Social Services Committee recommends to the Regional Council that: a) The resolution of the Council of the Township of South Stormont regarding the . regulation of the cosmetic use of pesticides is endorsed; b) The Premier of Ontario, Ministers of .the Environment, Health and Long.;.Term Care and. Healtb Promotion, Durham's MPPs, Acting Chief Medical Officer of Health, and the Council of the Township of South Stormont are so advised; c) This report Is received for Information; and' . d) This report Is forwarded to Durham's municipalities and the Durham Environmental Advisory Committee for information. REPORT: 1. On October 25, 2006, the Regional Council referred Council Correspondence item 261 back to the Health Department for further information about banning/reducing the cosmetic use of pesticides (Appendix A). In essence, the correspondence. from the CAO/Clerkof the Township of South Stormont urges the Government of Ontario to regulate the cosmetic use of pesticides on private property, thus "uploading" this responsibility from lower, single and upper tier municipalities to the Proviric~.' . 2. As regards the municipal regulation of pesticide use, the Legal Department advises that historically, the legal authority for lower, single and upper tier municipalities to' regulate the use of pesticides rested with section 130 of ,the Municipal Act, 2001. However, 8111130, the Municipal Statute Law Amendment Actl 2006 repealed section 130. Now the legal authority rests in section 11 of the Municipal Actl 2001 which states: (1) A lower-tier municipality and an upper-tier municipality may provide any service or thing that the municipality considers necessary or desirable for the public, subject to the rules set out in subsection (4). . 42 Report No.: 2007-MOH-17 - 2a...o 1 ~"'fTAC!.H'iENTt'i;,,....2l REPOHT#~5.__1 Page No: 2 _.:L '~l ,.....:3..__. " 152 .: - (2) A lower-tier municip~llity ~Jnd an upper-tier municipality ma)' pass by- laws, subject to the rules set out in subsection (4), respecting thE! following matters: 1. Governance structur4~ oftlle municipality and its local board~.. 2. Accountability and transplsrency of the municipality and its operations and of its local boards and their operations. 3. 1:inancial management of l~he municipality and its local boardts. 4. Public assets of the municipality acquired' for the purpose of exercising Its authority under this or any other Act. 5. Economic, social and envIronmental well-beina of the municipality. 6. Health. sa.few and well-belna of oersons [Emphasis added). . 7. Services and things that the municipality is authorized to provide under subsecUon (1)~ . 8. Protection lj"person~. and property, Including consumer protection. " . . . 3. The Legal Department is not aWiue of any upper tier municipality that has used such. authority to regulate the use of pesticides. However,' some lower- tier and single tief' municipalitiesi (e.g., Ottawa, Peterborough and Toronto) have passed such t,y-laws. , . For e.xainple, Toronto's PesUclde 13ylaVl (Municipal Code 612) came.lnto'effect. on April.1, 2004. By-law violation penalties began to apply for cc,mmerclal pesticide users such as li!wn care f;:ompanies on September. 1, 2005. Homeowners and renters will become subject to by-law' penalties on . September 1, 2007. An "'Intierlm Evaluation Report on Toronto's Pesticide Bylaw" by Toronto's Medical <OffiCI!r of Health dated February 9, 2007 indicates that 35% fewer Toronto houslaholCls reported any of use of pesticides on their lawns, as compared to 2003 (App1endix B). The report also indicates that an estimated 125 munlclpalitle~; In six, provinces have pesticide b~'.laws. In Toronto, the by-law Is enforc:ed by Public Healti) Inspectors with specialized training and certification In Inte"rated Pest Management from the. Ontario Integrated Pest ManagementJPlal1,t H.ealth Care Council. Since 2004, Public Health Inspectors have responded to over 3,000 complaints of possible by-law violations." Appendix C Is a summary on pesticides by-laws and pesticide reduction programs prepared by Environmental Health staff. . 4. Several Durham municipalities have adopted ttie principles of "Integrated Pest Management" and/or "Integrated . Plant Health Care " Programs" aimed at reducing the use of pesticides 0111 municipally-owned properties. In addition, others such as the Cities of Oshawa and Pickering are exploring the regulation of the cosmetic USEt of pesticides on both City-owned and private properties (Appendix D). 5. In Durham Region, the Rapid' Risk Factor Surveillance System (RR.FSS) has been used to collect local data all the use of pesticides and support for by- taws. The most recEmt data was cl)lIected from 2001 to 2003; howevl~r, further 43 Report No.: 2007 -MOH-17 :\CHYjF.l',ni;:__.,.~ REPORT~$->-' 2~~~ No: 3 _-3., VI ..:~._, 1 53 data will be collected in the spring of 2007. The RRFSS data can'" l1e' ~ summarized as follows: . 13% of Durham Region households had no lawn or garden; . 66% had a lawn or garden which they cared for themselves; . 20% hired a lawn care company; . 48% of households applied pesticides themselves; . 74% of households that hired a lawn care company had the company apply pesticides on their behalf: and . Overall, 62% of households with a lawn, garden or hard surface used pesticides in 2003 (Appendix E). 6. Currently, the Health Department provides information to Durham municipalities and the community on health issues related to the use of pesticides, integrated pest management and supporting strategies aimed at reducing pesticide use. For example, It has published arid distributed throughout the community a pamphlet entitled, "Reducing Pesticides: A Guide to Healthy Lawns & Gardens" (Appendix F). The pa~phlet ,and other information on pesticides can' be found on Region's ,Health portal (health.~egion~durham.on.ca) under Environmental Health Hazards. 7. Options that the Regional Council, may pursue . respecting the reduction/regulation of the use pesticides in Durham Region include: a) Continuing to promote various pest control strategies aimed at reducing pesticide use to the community, municipalities, retail outlets, school boards and other stakeholders: ' b) Continuing, to work with Durham municipalities on consistent approaches to reduced pesticide use including elimination of pesticides on municipally-owned properties; c) Supporting local municipal activities or initiatives related to development of by-laws regulating the use of pesticides including providing them with credible and relevant health information; and d) Exploring the development of a Regional by-law in consultation with Durham's municipalities. Respectfully submitted, , MD, MHSc, CCFP, FRCPC issioner & Medical Officer of Health 44