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report be approved and By-law No. 5992/02, as amended, be repealed; and,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
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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
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1.:.H../RdIL1J REG/ON
--:~~CEIVED
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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'
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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
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THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR WHICH ITlS ADDRESSED AND MA Y CONTAIN INFORMA nON THATlS PRIVILEGED.
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IF THE READER OF TIllS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING TIlE MESSAGE TO THE
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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
/-- --
/~~~,
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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
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ATTACHMENT#L TO REPORT#D~r/l'd .,)
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Deloitte
I~~;';2~!!tporati on 0 f
;thei:~1I of Pickering
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Audit Plan
Year Ending Decembe'r 31, 2007
,Audi t. Tax" ConsuJtiog. Finandnl Advisory.
--
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- 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
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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
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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.
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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
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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
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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.
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Audit approach
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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.
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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.
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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.
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City of Pickerina - 2007 Audit Plan
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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.
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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.
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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
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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?
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C:itv of Pic:kprina - 2007 Audit Plan
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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
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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.
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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.
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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.
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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
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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..~._................'-""_._...".'"-.
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~ ,:',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~
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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.
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.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~
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Btuce Taylor, Clerk
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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
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;( ~.l,(/tOCf)
Debi A. Wilcox /
City Clerk ;
Attachment
Recommended for the
Pickering City Counc.
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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:
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<---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
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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
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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
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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:
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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
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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
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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
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"Municipal Property & Engineering
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Attachments
Copy: Chief Administrative Officer
Approved I Endorsed By:
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Director, Operations & Emerg'ency Services
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Gillis A. Paterson
Director, Corporate Services ~~ Treasurer
CORP0227-07/01 revised
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MUNICIPAL PROPERTY & ENGINEERING
Attachment for Report: OES-41-2007
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LOCATION MAP
PROPOSED CONSTRUCTION INCLUDES:
. ASPHALT PATHWAYS, CURBED PLAY AREA, PLAY STRUCTURE,
SAFETY SURFACE, BENCHES.
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SUNBIRD TRAIL PARK
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PROPOSED CONSTRUCTION INCLUDES:
. ASPHALT PATHWAYS, CURBED PLAY AREA, PLAY STRUCTURE,
SAFETY SURFACE, BENCHES.
!VIENT#__~.", TOREPORT# OE~ 4-\-0 7
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CORPORATE SERVICES DEPARTMENT
MEMORANDUM
1 31
October 3, 2007
To:
Richard Holborn .,/
Division Head
Municipal Property & Engineering
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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.
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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
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Other
k:tendpay/record of tenders opened doc.
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CORPORATE SERVICES DEPARTMENT
dES tfl-07
:if...SUPF'L Y 8t SERVICES
MEMOHANDUM
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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 --
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September 11, 2007
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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.
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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:
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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
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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.
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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.
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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
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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.. ~
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Everett Buntsma \.../
Director
Operations & Emergency Services
Jo ' Hannah
perintendent, Municipal Operations
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Chantal Whitaker
Coordinator, Environmental AwarenE~ss
Programs
CW:EB:mld
Attachments
Copy: Chief Administrative Officer
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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
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(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.
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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.
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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
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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
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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