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HomeMy WebLinkAboutJune 10, 2013 (Joint)Citq -10 Joint Planning & Development & �� Executive Committee Meeting 1 _ Agenda PICKERING Monday, June 10, 2013 Council Chambers 7:00 pm Chair: Councillor Pickles Delegations 1. Paula Jesty Deloitte & Touche Re: Report FIN 13 -13 2012 Year End Audit Part "A" Planning & Development Committee Reports Page Nos. Director, City Development, Report PLN 14 -13 1 -11 Zoning By -law Amendment Application A 3/13 OPB Realty Inc. (Pickering Town Centre) 1355 Kingston Road Recommendation That Zoning By -law Amendment Application A 3/13, submitted by OPB Realty Inc., to permit a seasonal outdoor Farmers' Market use on lands municipally known as 1355 Kingston Road, be approved, and that the draft zoning by -law, as set out in Appendix I to Report PLN 14 -13 be forwarded to City Council for enactment. 2. - Director, City Development, Report PLN 16 -13 12 -39 Official -Plan Amendment Application OPA 12 -002 /P Draft Plan of Subdivision Application SP- 2012 -02 Draft Plan of Condominium Application CP- 2012 -03 Zoning By -law Amendment Application A 5/12 Nanak Creations Inc. Part of Lot 1, Plan 388 and Block 39, Plan 40M -2086 (283 -299 Finch Avenue) For information related to accessibility requirements please contact Accessible Linda Roberts P Phone: 905.420.4660 extension 2928 TTY: 905.420.1739 Email: Iroberts @pickering.ca Alternate formats available upon request at 905.683.7575 CiNo0 Joint Planning & Development & Executive Committee Meeting M� Agenda PICKERING Monday, .June 10, 2013 Council Chambers 7:00 pm Chair: Councillor Pickles Recommendation 1. That Official Plan Amendment Application OPA 12- 002 /P, submitted by Nanak Creations Inc., on lands being Part of Lot. 1, Plan 388 and Block 39, Plan 40M -2086, to redesignate the subject lands from "Urban Residential Areas - Low Density Areas" to "Urban Residential Areas — Medium Density Areas ", be approved, as outlined in Appendix I to Report Number PLN 16 -13, and that staff be authorized to finalize and forward the draft by -law to adopt Amendment No. 24 to the Pickering Official Plan to Council for enactment; 2. That Draft Plan of Subdivision Application SP- 2012 -02, submitted by Nanak Creations Inc., on lands being Part of Lot 1, Plan 388 and Block 39, Plan 40M- 2086, to establish blocks for residential, road widening and 0.3 metre reserve uses as shown on Attachment #4 to Report Number PLN 16 -13, and the implementing conditions as set out in Appendix II, be endorsed; and 3. Further, that Zoning By -law Amendment Application A 5/12, submitted by Nanak Creations Inc., to implement the Draft Plan of Subdivision SP- 2012 -02 and to permit the development of 23 townhouse units on a common element condominium road, be endorsed as outlined in Appendix III to Report Number PLN 16 -13, and that staff be authorized to finalize and forward an implementing Zoning By -law Amendment to Council for enactment. Part "B" Executive Committee Reports Director, Corporate Services & City Solicitor, Report FIN 13 -13 2012 Year End Audit 40 -109 Recommendation That Report FIN 13 -13 of the Director, Corporate Services & Solicitor be received; 2. That the Year -end Communication Report as submitted by Deloitte LLP (Deloitte) be received for information; and, ciar oo Joint Planning & Development & 117 Executive Committee Meeting _ Agenda PICKERING Monday, June 1.0, 2013 Council Chambers 7:00 pm Chair: Councillor Pickles 3. That the 2012 draft Audited Consolidated Financial Statements for the City of Pickering be approved. 2. Director, Engineering & Public Works, Report ENG 09 -13 110 -117 Tender for Asphalt Resurfacing on Rosebank Road - Tender No. T -20 -2013 Recommendation That Report ENG 09 -13 of the Director, Engineering & Public Works regarding Tender for Asphalt Resurfacing on Rosebank Road be received; 2. That Tender No. T -10 -2013 as submitted by Coco Paving Inc. for Asphalt Resurfacing on Rosebank Road in the total tendered amount of $141,025.79 (HST included) be accepted; 3. That the total gross project cost of $159,310.00 (HST included), including the tender amount and other associated costs and the total net project cost of $143,464.00 (net of HST rebate) be approved; 4. That Council authorizes the (Acting) Division Head, Finance & Treasurer to finance the project in the amount of $143,464.00 from Other Revenue York Region (South East Collector Enhancements) be approved; and 5. That the appropriate City of Pickering. officials be authorized to take necessary action to give effect thereto. 3. Director, Engineering & Public Works, Report PW 03 -13 118 -125 Tender No. T -6 -2013 - Reconstruction of Tennis Courts — David Farr Park and Claremont Park Recommendation That Report PW 03 -13 of the Director, Engineering & Public Works regarding Tender No. T -6 -2013 for Reconstruction of Tennis Courts - David Farr Park and Claremont Park be received; Joint Planning & Development & Executive Committee Meeting Agenda Monday, June 10, 2013 Council Chambers 7:00 pm Chair: Councillor Pickles 2. That Tender No. T -6 -2013 submitted by Court Contractors Ltd. for Reconstruction of Tennis Courts - David Farr Park and Claremont Park in the amount of $224,343.70 (HST included) be accepted; 3. That the total gross project cost of $251,355.00 (HST included) including the tender amount and other associated costs and the total net project cost of $226,353.00 (net of HST rebate) be approved; 4. That Council authorize the (Acting) Division Head, Finance & Treasurer to finance the sum of $226.353.00 as approved in the 2011 and 2013 Capital Budgets from Parkland Reserve Fund; and 5. That the appropriate City of Pickering officials be authorized to take necessary action in order to give effect thereto. 4. Director, Engineering & Public Works, Report PW 04 -13 126 -135 Supply and Delivery of One New Current Model Year Road Grader - Quotation No. Q -23 -2013 Recommendation That Report PW 04 -13 of the Director, Engineering & Public Works regarding Quotation No. Q -23 -2013 for the Supply and Delivery of One New Current Model Year Road Grader be received; 2. That Quotation No. Q -23 -2013 as submitted by Nortrax Canada Inc. in the total quotation amount of $246,193.10 (HST included), for the Supply and Delivery of One New Current Model Year Road Grader, including a trade -in on the City's 2002 Volvo 740VHP be accepted; 3. That the total gross project cost of $249,583.00 (HST included), including the quotation amount and other associated costs, and the total net project cost of $224,757.00 (net of HST rebate) be. approved; 4. That Council authorize the (Acting) Division Head, Finance and Treasurer to finance the net project cost of $224,757.00 as follows: a) that the sum of $220,000.00, be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed five years, at a rate to be determined; b) that the sum of $4,757.00 be funded from property taxes; Joint Planning & Development & Executive Committee Meeting Agenda Monday, June 10, 2013 Council Chambers 7:00 pm Chair: Councillor Pickles c) that the annual repayment charges in the approximate amount $47,000.00 be included in the annual Current Budget for the City of Pickering, commencing in 2014 and continuing thereafter until the debenture financing is repaid; and any financing cost to be paid out of the Current Budget; 5. That the draft by -law attached to this report be enacted; and 6. That the appropriate City of Pickering Officials be authorized to take necessary action to give effect thereto. 5. Director, Engineering & Public Works, Report PW 05 -13 136 -145 Supply and Delivery of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing - Quotation No. Q -22 -2013 Recommendation That Report PW 05 -13 of the Director, Engineering & Public Works regarding the Supply and Delivery of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing be received; 2. That Quotation No. Q -22 -2013, as submitted by Tallman Truck Centre Limited for the Supply and Delivery of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing in the amount of $211,310.00 (HST included) be accepted, 3. That the total gross project cost of $212,440.00 (HST included) and a net project cost of $191,309.00 (net of HST rebate) be approved; 4. That Council authorize the (Acting) Division Head, Finance &Treasurer to finance the project as follows; a) that the sum of $190,000.00 be financed by the issue of debentures through the Regional Municipality of Durham for period not exceeding five years, at a rate to be determined; b) that the balance of $1,309.00 be funded from property taxes; C-dr "o Joint Planning & Development & Executive Committee Meeting Agenda DICKERING Monday, June 10, 2.013 Council Chambers 7:00 pm Chair: Councillor Pickles c) that the annual repayment charges in the approximate amount of $41,000.00 be included in the annual Current Budget for the City of Pickering commencing in 2014 and continuing thereafter until the debenture financing is repaid and any financing cost to be paid out of the Current Budget; 5. That the draft by -law attached to this report be enacted; and 6. That the appropriate City of Pickering Officials be authorized to take necessary action to give effect. 6. Director, Corporate Services & City Solicitor, Report FIN 14 -13 146 -148 Section 357/358 of the Municipal Act — Adjustment to Taxes Recommendation That Report FIN 14 -13 of the Director, Corporate Services & City Solicitor be received; 2. That the write -offs of taxes as provided under Section 357/358 of the Municipal Act, 2001 be approved; and, 3. That the. appropriate officials of the City of Pickering be authorized to take the necessary action to give effect hereto. 7. Director, Corporate Services & City Solicitor, Report FIN 15 -13 149 -152 Development Charges — Annual Indexing Recommendation 1. That Report FIN 15 -13 of the Director, Corporate Services & City Solicitor be received; 2. That effective July 1, 2013 as provided for in Section 16 of By -law 6978/09, the Development Charges referred to in Sections 6 and 11 of that By -law be increased by 0.8 percent; and, 3. That the appropriate officials of the City of Pickering be given authority to give effect thereto. w- Mimi Joint Planning & Development & Executive Committee Meeting Agenda Monday, June 10, 2013 Council Chambers 7:00 pm Chair: Councillor Pickles 8. Director, Corporate Services & City Solicitor, Report FIN 16 -13 153 -156 2013 Property and Liability Insurance Renewal (Six Months) Recommendation 1. That Report FIN 16 -13 of the Director, Corporate Services & City Solicitor regarding the insurance renewal be received; 2. That the City of Pickering renew its property, liability and other insurance policies through the Frank Cowan Company for the period July 1, 2012 to January 1, 2014 in the amount of $391,913 ( plus applicable taxes) and inclusive of terms and conditions acceptable to the (Acting) Division Head Finance & Treasurer; 3. That L.V. Walker & Associates be confirmed as the City's Adjuster of Record for property, liability and other insurance and related matters; 4. That the (Acting) Division Head, Finance & Treasurer be authorized to settle any claims including any adjusting and legal fees, where it is in the City's interest to do so; 5. That the (Acting) Division Head, Finance & Treasurer be authorized to purchase additional insurance, make changes to deductibles and existing coverages, and alter terms and conditions as becomes desirable or necessary in order to limit potential liability exposure and to protect the assets of the City and its elected officials and staff; and, 6. That the appropriate officials be authorized to take the necessary actions to give effect thereto. (II) OTHER BUSINESS (III) ADJOURNMENT eit, o0 Report to Planning & Development Committee PICKERING Report Number: PLN 14 -13 Date: June 10, 2013 From: Thomas Melymuk Director, City Development Subject: Zoning By -law Amendment Application A 3/13 OPB Realty Inc. (Pickering Town Centre) 1355 Kingston Road Recommendation: That Zoning By -law Amendment Application A 3/13, submitted by OPB Realty Inc., to permit a seasonal outdoor Farmers' Market use on lands municipally known as 1355 Kingston Road, be approved, and that the draft zoning by -law, as set out in Appendix I to Report PLN 14 -13 be forwarded to City Council for enactment. Executive Summary: For each of the past two years, the applicant has obtained approval from the Committee of Adjustment for a minor variance application to permit the operation of a temporary seasonal open air market (Farmers' Market) on the Pickering Town Centre lands. This spring, the applicant submitted a zoning by -law amendment application to permit an outdoor seasonal Farmers' Market on the Pickering Town Centre lands, annually. The proposed Farmers' Market will be situated in the parking lot to the east of the shopping centre immediately across from the Pickering Civic Complex and Central Library, and will be in operation once a week, from June 1St to October 31St , every year (see Location Map and Applicant's Submitted Plan, Attachments #1 and #2). Staff has had an opportunity to evaluate and monitor the operation of the Farmers' Market over the last two years. It is concluded that the proposed zoning by -law amendment application to permit a Farmers' Market conforms to the policies and provisions of the Pickering Official Plan and is consistent with the goals and urban design objectives of the Pickering Downtown Core Development Guidelines. Staff recommends that the application be approved, and the implementing zoning by -law, attached as Appendix I, be forwarded to Council for enactment. Financial Implications: No direct costs to the City are anticipated as a result of the proposed development. Report PLN 14 -13 June 10, 2013 Subject: OPB Realty Inc. (Pickering Town Centre) (A 3/13) Page 2 1. Background In 2011 and 2012, OPB Realty Inc., the owner of the Pickering Town Centre, submitted minor variance applications to the Committee of Adjustment to permit a temporary seasonal open air market (Farmers' Market). Based on the operational success of the Farmers' Market at the Pickering Town Centre, City staff requested that the applicant submit a zoning by -law amendment to permit, on a permanent basis, a seasonal Farmers' Market use on the subject lands. 1.1 Property Description The subject property is a major commercial site that has frontages along Kingston Road, Liverpool Road, Pickering Parkway and Glenanna Road (see Location Map, Attachment #1). The property is approximately 22 hectares in area . The property currently supports the Pickering Town Centre shopping mall, the north terminus of the pedestrian bridge connecting to the GO Station, a GO Transit parking structure, an office building, Durham /Centennial College, a vacant commercial building (formally occupied by Golden Griddle) and a proposed commercial building (to be occupied by Jack Astor's). Surrounding land uses include a variety of retail commercial uses of different scales, high density residential and office uses, and the Pickering Civic Complex and Central Library. 1.2 Applicant's Proposal The applicant proposes to amend the zoning by -law to permit a seasonal outdoor Farmers' Market. The proposed Farmers' Market will be situated within the parking lot to the east of the Pickering Town Centre shopping mall, across from the Pickering Civic Complex and Central Library (see cross - hatched area on Location Map, Attachment #1). The Farmers' Market will be in operation once a week, annually from June 1St to October 31St. The overall concept plan for the Farmers' Market includes temporary structures for different vendors, storage pods and an entertainment stage (see Applicant's Submitted Plan, Attachment #2). No exterior changes to the existing buildings are proposed in connection with this use. Report PLN 14 -13 June 10, 2013 Subject: OPB Realty Inc. (Pickering Town Centre) (A 3/13) Page 3 2. Comments Received 2.1 At the April 8, 2013 Public Information Meeting and in written submission No public were present at the meeting to express their support or concerns for this proposal. Committee members raised the following questions to be addressed by City Development Staff: • will the approval of this application prohibit vendors from setting up elsewhere and also whether there are any regulations for ensuring local produce • will there be sufficient supply of parking available during the operation of the Farmers' Market; and • what is the definition of "locally grown food" In response, staff prepared a memorandum to the Chief Administrative Officer. This memo, dated May 15, 2013, was recently circulated to all members of Council. In brief, operation of a Farmers' Market in Pickering requires zoning, and a business license from the City if it is operated for profit. Both the Region of Durham Health Department and the Province of Ontario inspect and regulate farmers' markets, primarily from a health and food safety perspective. Staff is recommending a definition for Farmers' Market that requires the food to be locally grown in Ontario. The concern regarding sufficient supply of parking spaces during the operation of the Farmers' Market would be required for any site seeking zoning, and for the Pickering Town Centre proposal, this issue is addressed in section 3.2 of this Report. 2.2 City Departments & Agency Comments Region of Durham • the Region of Durham Planning Department has advised that the proposal to permit a Farmers' Market is permitted by the policies of the Regional Official Plan • the application has been screened in accordance with the terms of the provincial plan review responsibilities • the application generally conforms with the Growth Plan of the Greater Golden Horseshoe • the proposed amendment does not present any significant Regional transportation or transit impacts Engineering & • no comments or concerns Public Works Economic • the Economic Development Office fully supports this Development application • uses such as this are integral to the development of a vibrant downtown • the proposed use will create a healthy gathering space where residents of all ages that can come together and be engaged by the agricultural, artistic and cultural communities Report.PLN 14 -13 June 10, 2013 Subject: OPB Realty Inc. (Pickering Town Centre) (A 3/13) Page 4 the location of this market is appropriate as visitors can access the market by various modes of transportation including walking, cycling, public bus and train transit and personal vehicle the Farmers' Market will also positively affect the overall economic health of the downtown as it draws more visitors and shoppers to the area 3. Planning Analysis 3.1 The proposed Farmers' Market use complies with the Pickering Official Plan and the Downtown Core Development Guidelines The Official Plan designates the subject property as "Mixed Uses Areas — Downtown Core" within the Town Centre neighbourhood. This designation is the City's main focus for business, employment, entertainment, shopping, major community and cultural uses, major indoor recreations facilities, and high density residential accommodation. The Downtown Core has the widest range of permissible uses in the City, and is intended to permit development at the greatest scale and intensity. The proposed Farmers' Market use complies with the policies of the Pickering Official Plan. The Downtown Core Development Guidelines provide a framework that supports the long -term vision for the downtown as: a major regional landmark and a destination point; a strong civic and cultural focus for Pickering; and having a range of uses including housing, employment, retail and entertainment that would support the creation of a safe, comfortable, and inviting pedestrian environment. The proposed Farmers' Market supports the urban design objectives of the Downtown Core by creating an inviting and lively pedestrian environment along Glenanna Road and reinforcing the Downtown as a destination. 3.2 Sufficient parking supply is available to support the seasonal Farmers' Market and the Pickering Town Centre The proposed seasonal outdoor Farmers' Market will occupy a total of 90 parking spaces, which represents a temporary removal of 2% of the overall supply of parking on the Pickering Town Centre site. During the operation of the Farmers' Market, a total of 4,153 parking spaces will be available. The applicant has advised that over the past two years during the operation of the seasonal Farmers' Market that there was a sufficient supply of on -site parking to serve the Farmers' Market and the Pickering Town Centre. Staff are satisfied that as a temporary use, the Farmers' Market will not unduly impact the functionality of the site during its operation. Further, a more than adequate supply of parking will be maintained on the property to serve the users of the site while the Farmers' Market is operational. Report PLN 14 -13 June 10, 2013 Subject: OPB Realty Inc. (Pickering Town Centre) (A 3/13) Page 5 3.3 Sustainability Implications Staff's review of the application against the City's Draft Sustainable Development Guidelines resulted in a score below the Level 1 standard. Given the small scope of the zoning by -law amendment application, which is to permit a seasonal outdoor Farmers' Market, there is limited opportunities to achieve Level 1. By hosting a Farmers' Market, the Pickering Town Centre shows its commitment to sustainability by helping local farmers, encouraging community access to and support for locally grown food, and supporting local food banks through charitable donation of food products. Further opportunities exist on the subject lands to implement additional sustainable options through future development. 3.4 By -law to be forwarded to Council The subject lands are currently zoned "MCA -1, MCA- 1/CO -2 and MCA -1 /GSY by Zoning By -law 3036 as amended by By -law 5994/02, which permits a variety of commercial uses. The draft zoning by -law attached as Appendix I to this Report expands the list of permitted uses to include a Farmers' Market use on the subject lands. The draft by -law establishes a new definition for an outdoor Farmers' Market where the majority of the vendors must be primary producers of farm products grown within the Province of Ontario. The new definition will distinguish a Farmers' Market from a Flea Market. The draft by -law also includes provisions exempting a Farmers' Market operating outdoors from requiring additional parking, and reducing the minimum number of required parking spaces to be provided on the subject lands while the Farmers' Market is in operation. It is recommend that the draft by -law be finalized and forwarded to Council for enactment. Appendix Appendix I Draft By -law Attachments 1. Location Map 2. Applicant's Submitted Plan Report PLN 14 -13 June 10, 2013 Subject: OPI3 Realty Inc. (Pickering Town Centre) (A 3/13) Prepared By: cv Mila Yeung Planner II Nilesh Surti, MCIP, RPP Manager Development Review & Urban Design MY:ld Recommended for the consideration of Pickering City Council Approved /Endorsed By: Catherine Rose, MCIP, RPP (Acting) Chief Planner Thomas Mely uk, kelp, R Director, City Deveropment Tony Prevedel, P.Eng. Chief Administrative Officer Page 6 Appendix I to Report PLN 14 -13 Draft Implementing Zoning By -law Amendment Application A 3/13 The Corporation of the Ci of Pickering By -I Being a by -law to amend Restricted Area (Zoning) By -law 3036, as amended, to implement the Official Plan of the City of Pickering, Region of Durham in Part of Lots 21 and 22, Concession 1, Part 2 -20, 22 -24, & Part of Parts 1, 21, 40R -8355 and Parts 1 & 2, 40R -8513, in the City of Pickering (A 3/13). Whereas the Council of The Corporation of the City of Pickering deems it desirable to add a Farmers' Market use to the permitted uses for the subject property being Part of Lots 21 and 22, Concession 1, Part 2 -20, 22 -24, & Part of Parts 1, 21, 40R -8355 and Parts 1 & 2, 40R -8513 in the City of Pickering. And whereas amendment to By -law 3036 as amended by By -law 5994/02 is therefore deemed necessary-, Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows.. 1. Area Restricted The provision -of this By -law shall apply to those lands in Part of Lots 21 and 22, Concession 1, Part 2 -20, 22 -24, & Part of Parts 1, 21, 40R -8355 and Parts 1 & 2, 40R -8513, in the City of Pickering. 2. -Text Amendment Section 4 — Definitions, of By -law 3036, as amended by By -law 5994/02, is hereby amended by renumbering and re- alphabetizing the subsections in order to incorporate the new definitions as follows- (13) "Farmers' Market" shall mean a building, part of a building or open area where a majority of the vendors shall be primary producers of agricultural products grown within the Province of Ontario that are offered for sale directly to the general public, but may also feature other vendors who offer prepared foods and artisan crafts as well as provide entertainment and community information, but shall not include a Flea Market; (15) "Flea Market" shall mean a building or part of a building in which stalls or sales area are set aside and rented or otherwise provided where groups of individual sellers offer goods, new and used, for sale to the public; By -law Page 2 Clause section 5. (1)(a), Uses Permitted ("MCA-1", "MCA -2 ", "MCA-1/CO-2" Zones), of By -law 3036 as amended by By -law 5994/02, is hereby amended by renumbering and re- alphabetizing this subsection in order to incorporate the new use permitted: (xi) Farmers' Market 3. Subclause 5. (2)(a)(v), Parking Requirements, of By -law 3036 as amended by By -law 5994/02, is hereby amended by incorporating the following subparagraphs: N (1) Despite paragraphs A above, a Farmers' Market use operating outdoors shall be exempt from providing any required parking spaces; (11) Despite the parking requirement of subclause 5.(2)(a)(v) the total number of required parking spaces to be provided on -site may be reduced by 90 spaces, while the Farmers' Market use is operating outdoors; (111) Farmers' Market use shall only be permitted to operate outdoors between June 1st to October 31St within a calendar yea r. 3. By -law 3036 By -law 3036, as amended by By -law 5994/02, is hereby further amended only to the extent necessary to give effect to the provisions of this By -law as set out in the Section 1, Area Restricted, and Section 2, Text Amendment, above. Definitions and subject matters not specifically dealt with in this By -law shall be governed by relevant provisions of By -law 3036, as amended. 4. Effective Date The By -law shall come into force in accordance with the provisions of the Planning Act. By -law passed this day of 2013. R 0 David Ryan, Mayor Debbie Shields, City Clerk ATTACHMENT #_—L_TO REPORT # P-N 1q-13 Q ° BRANDS COURT > J 0 C 0 Q W J 0 GLENANNA ROAD J 0 d > Q NORSN w a POE ESPY P� ESPLANA c�Fl �_NE JCD TO PERMIT PICKERING A FARMEUSE QRKET 922 CIVIC COMPLEX y AND PARK ENTRAL LIBRARY S ESP�P�PpE -CNE SUBJECT Q PROPERTY 0 0 D J 0 a n w qp1 P'� N\ONW City of Pickering City Development Department PROPERTY DESCRIPTION 1355 Kingston Road & 1815 Liverpool Road Con 1 Pt Lot 21, 22, 40R -8355, Part 2- 2D 22 -24 Pt. of Pts. 1 21 & 40R -85i 3 Pt. 2 OWNER OPB Realty Inc. DATE May 8, 2013 DRAWN BY JB FILE No. A 03/13 SCALE 1:5,000 CHECKED BY MY oTerc netrcEntcrpriaea Inc. and its suppliers. All rights Reserved. Not a plan of survey. 2005 .PAC and its sup lies. All ri hta Reserved. Not a plan of Surve PN_o N V s ='ss Pickering Town Centre ,r Entrance 4 Sears ATTACHMENT #_ :�2 _TO REPORT # PLN /9-13 Information Compiled from Applicant's Submitted Plan A 03/13 OPB Realty Inc. t ��p`aea N This map was produced by The City Of Pickering City Development Department, Planning Information Services Mapping And Design, Mar. 7, 2013. Farmers' Market „� �P PICKEPoNG ;LAM j h g TQVJ CENTRE y -5` SEARS �,tt\ ZELLERS t ��p`aea N This map was produced by The City Of Pickering City Development Department, Planning Information Services Mapping And Design, Mar. 7, 2013. Report to _ I IT — Planning & Development Committee PICKERING Report Number: PLN 16 -13 Date: June 10, 2013 From: Tom Melymuk Director, City Development Subject: Official Plan Amendment Application OPA 12 -002 /P Draft Plan of Subdivision Application SP- 2012 -02 Draft Plan of Condominium Application CP- 2012 -03 Zoning By -law Amendment Application A 5/12 Nanak Creations Inc. Part of Lot 1, Plan 388 and Block 39, Plan 40M -2086 (283 -299 Finch Avenue) Recommendation: That Official Plan Amendment Application OPA 12- 002 /P, submitted by Nanak Creations Inc., on lands being Part of Lot 1, Plan 388 and Block 39, Plan 40M -2086, to redesignate the subject lands from "Urban Residential Areas — Low Density Areas" to "Urban Residential Areas — Medium Density Areas ", be approved, as outlined in Appendix I to Report Number PLN 16 -13, and that staff be authorized to finalize and forward the draft by -law to adopt Amendment No. 24 to the Pickering Official Plan to Council for enactment; 2. That Draft Plan of Subdivision Application SP- 2012 -02, submitted by Nanak Creations Inc., on lands being Part of Lot 1, Plan 388 and Block 39, Plan 40M -2086, to establish blocks for residential, road widening and 0.3 metre reserve uses as shown on Attachment #4 to Report Number PLN 16 -13, and the implementing conditions as set out in Appendix II, be endorsed; and 3. Further, that Zoning By -law Amendment Application A 5/12, submitted by Nanak Creations Inc., to implement the Draft Plan of Subdivision SP- 2012 -02 and to permit the development of 23 townhouse units on a common element condominium road, be endorsed as outlined in Appendix III to Report Number PLN 16 -13, and that staff be authorized to finalize and forward an implementing Zoning By -law Amendment to .Council for enactment. Executive Summary: The subject lands are located at the southwest corner of Altona Road and Finch Avenue (see Location Map, Attachment #1). Nanak Creations Inc. has submitted applications for Official Plan Amendment and Zoning By -law Amendment to implement a Draft Plan of Subdivision and a Draft Plan of Condominium for 23 townhouse units accessed by a private road (see Applicant's Revised Plan, Attachment #3). Report PLN 16 -13 June 10, 2013 Subject: Nanak Creations Inc. Page 2 The proposal is consistent with policies of the Provincial Policy Statement, the Growth Plan for the Greater Golden Horseshoe, and the Durham Regional Official Plan, by providing for intensification through a compact form of development within the built up area and promoting an efficient use of land. The proposed development establishes a higher intensity use at the neighbourhood centre of Finch Avenue and Altona Road through appropriate massing and architectural detailing. The proposed development establishes a strong relationship with the intersection, which is consistent with the goals and objectives of the Official Plan and the Rouge Park Neighbourhood Development Guidelines. Through the protection of environmental lands within the Rouge Park Neighbourhood, the amount of developable land has been reduced. In order to reach the population targets for this neighbourhood, it is appropriate to increase the density on the subject lands. The recommended Official Plan and Zoning By -law Amendments provide for appropriate density and performance standards for this vacant parcel of land. Required common elements for the condominium plan have been identified and will be secured. Further, site plan approval will address remaining design and technical matters. Accordingly, staff recommends that Official Plan Amendment Application 12 -002 /P and Zoning By -law Amendment Application A 05/12 be approved, and that City Council endorse Draft Plan of Subdivision SP- 2012 -02. Financial Implications: No direct costs to the City are anticipated as a result of the recommendations of this report. 1. Background 1.1 Property Description The subject property is located at the southwest corner of Finch Avenue and Altona Road (see Location Map, Attachment #1). The subject lands are comprised of two properties having a combined land area of approximately 0.5 of a hectare, with approximately 52 metres of frontage along Finch Avenue and approximately 63 metres of frontage along Altona Road. The site is presently vacant with no significant vegetation. Surrounding the subject lands to the south and west is an established medium density residential subdivision of semi - detached dwellings fronting onto Shadow Place. To the north, across Finch Avenue, are vacant agricultural lands, and to the east, across Altona Road, is a vacant commercial property. Report PLN 16 -13 June 10, 2013 Subject: Nanak Creations Inc. Page 3 1.2 Applicant's Original Proposal The applicant's original proposal was to amend the Official Plan and the Zoning By -law to implement a draft plan of subdivision and a common element condominium for 24 townhouse units accessed by a private road. The original plan also included a total of 7 visitor parking spaces and a parkette at the south end of the property (see Applicant's Original Plan, Attachment #2). 1.3 Applicant's Revised Proposal Based on comments from the City and area residents, the applicant submitted a revised plan to deal with the overall layout and urban design for the site (see Applicant's Revised Plan, Attachment #3). The revised proposal includes the following changes: • a reduction in the total number of townhouses from 24 units to 23 units • a 315 square metre parkette is now the central focus of the development • a total of 7 visitor parking spaces are centrally located around the perimeter of the parkette • the vehicular entrance from Finch Avenue has been slightly shifted to the east to allow for a row of townhouse units along the westerly perimeter of the site; and • . a pedestrian connection from the development to Altona Road has been added The draft plan of subdivision proposes the creation of 3 blocks to accommodate a 3.0 metre wide road widening block along Finch Avenue; a 0.41 hectare residential development block for 23 townhouse units and a 0.3 metre reserve block along Altona Road and Finch Avenue. The draft plan of condominium proposes a common element condominium for private internal roads, visitor parking spaces, parkette, mailboxes, internal sidewalks and a water meter room. 2. Comments Received 2.1 Public comments from the October 1, 2012 Public Information Meeting, the April 9, 2013 Public Open House and written submissions At the October 1, 2012 Public Information Meeting, approximately seven residents /landowners attended the meeting to voice their concerns with respect to the original development proposal, and one letter of objection was received. The majority of their concerns related to whether the proposal was in keeping with the existing character of the neighbourhood. Specifically, the concerns identified are as follows: • compatibility of the proposed 3- storey dwellings with the existing 2- storey semi - detached dwellings along Shadow Place • insufficient supply of on -site visitor parking within the development site • increased traffic impacts; and • construction noise Report PLN 16 -13 June 10, 2013 Subject: Nanak Creations Inc. Page 4 The City Development Department received a petition, dated January 10, 2013, signed by 15 households along Shadow Place, Mapleview Court and Stonepath Circle stating that they do not want any development to occur on the subject lands. On April 9, 2013, a Public Open House was held to inform area residents about the revised development proposal. Three area residents attended the meeting and provided written comments. In addition to concerns raised at the Public Information Meeting, concerns regarding stormwater management and drainage were also identified. 2.2 City Departments & Agency Comments Region of Durham • the Region of Durham Planning Department has advised that the proposal complies with the Living , Areas designation policies of the Region Official Plan • in accordance with Regional By -law 11 -2000, the Official Plan Amendment application is exempt from Regional approval • the submitted Noise Feasibility Study indicated sound levels will exceed Ministry of Environment guidelines and recommends upgraded construction requirements and warning clauses be included in all purchase and sale agreements • the updated Phase I Environmental Site Assessment, dated February 2013, indicates that there are no potential site contamination concerns on the subject lands • a Stage 1 -2 Archaeological Assessment has been received and shall be submitted to the Ministry of Culture and Tourism for their review and clearance • sanitary and water services are available to the subject lands • the Region has no objection to draft approval of the proposed Plans of Subdivision and Condominium, and have sent conditions of approval Toronto and . the TRCA is satisfied with the submitted Flood Study Region Report and revised Functional Storm Servicing Report Conservation • the TRCA has no objection to the Official Plan and Authority Zoning By -law amendments • the TRCA has no objections to the draft plan approval of the Plans of Subdivision and Condominium, and have sent conditions of approval Report PLN 16 -13 Subject: Nanak Creations Inc. Engineering & Public Works Fire Services 3. Planning Analysis June 10, 2013 Page 5 • generally satisfied with the development proposal at this time • no objections to the revised Traffic Impact Study and the location of the vehicular access is acceptable • generally satisfied with the revised Functional Servicing Report • detail drawings regarding landscaping, stormwater management and grading will be reviewed through the site plan approval process • details of emergency vehicle access will be finalized through the site plan review process 3.1 The proposal complies with the policies of the Provincial Policy Statement, Growth Plan and the Durham Regional Official Plan The Provincial Policy Statement (PPS) provides provincial direction in terms of land use planning and development in Ontario with which municipal planning decisions must be consistent. The PPS states that healthy, livable and safe communities are to be sustained, including, among other matters, promoting efficient and cost - effective development to minimize land consumption and servicing cost. Land use patterns within settlement areas are to be based on densities and a mix of land uses which efficiently use land and resources; and demonstrate a compact form and densities that allow for the efficient use of land, infrastructure and public service facilities. The proposal provides for intensification within the built up area and promotes efficient development and land use. Furthermore, the development provides for an additional housing type within the neighbourhood for the benefit of existing and future residents. The proposal conforms to the provisions of the PPS. The Growth Plan for the Greater Golden Horseshoe ( "Growth Plan ") provides a framework for managing growth in the Greater Golden Horseshoe including direction for where and how to grow. The subject lands are located within the "Built -Up Area" of Pickering, as defined in the Growth Plan. The development provides for a compact form of development that satisfies the Plan's intensification objectives. The subject lands are within the "Living Areas" designation of the Durham Regional Official Plan. Within the "Living Areas" designation lands are encouraged to be developed in a compact form through higher density uses. Policy 813.1.4 also encourages local official plans to maximize permissible densities on vacant lands within urban areas to create and maintain an attractive living environment. The proposed development complies with the applicable policies of Durham Region Official Plan. Report PLN 16 -13 Subject: Nanak Creations Inc. June 10, 2013 Page 6 3.2 Redesignating the subject lands to "Urban Residential Area — Medium Density Areas" supports the goals and objectives of the Pickering Official Plan The subject lands are currently designated "Urban Residential Areas — Low Density Areas" in the Pickering Official Plan, which permits up to 30 units per hectare. The applicant is proposing 23 townhouse units on approximately 0.41 hectares of land, which equates to 56 units per net hectare. To facilitate the proposed development, the applicant has submitted an- application for Official Plan Amendment to redesignate the subject lands to "Urban Residential Areas — Medium Density Areas ", which permits residential uses with a density range of over 30 units per net hectare and up to and including 80 units per net hectare. The proposed Official Plan Amendment is appropriate and represents good planning. The proposal is consistent with section 6.2 (c) of the City's Official Plan, which states that City Council encourages the provision of an adequate range of housing and tenure types to be available and integrated within the City's neighbourhoods to meet the needs of existing and future populations. Furthermore, the proposal is also consistent with section 6.5 of the Official Plan which states that City Council shall maximize the efficiency of existing infrastructure and minimize the consumption of vacant land by encouraging infill development of vacant or underutilized blocks of land. The development as proposed reflects a compact urban form that makes efficient use of resources and infrastructure. The development also provides for an alternative housing form and tenure within the neighbourhood which is sensitive to and in scale with the existing neighbourhood. The proposed housing type and built form will help create a safe, attractive and pedestrian friendly environment along Finch Avenue and Altona Road. Staff recommend that Official Plan Amendment Application 12- 002 /P, submitted by Nanak Creations Inc., to redesignate the subject lands from "Urban Residential Areas — Low Density Areas" to "Urban Residential Areas — Medium Density Areas ", be approved, as outlined in Appendix I to Report Number PLN 16 -13. 3.3 The proposal is consistent with the Rouge Park Neighbourhood Policies and Development Guidelines The subject lands are located within the Rouge Park Neighbourhood for which Development Guidelines have been established and adopted by Council. This application has been reviewed against both the neighbourhood policies and the Development Guidelines for the Rouge Park neighbourhood. Report PLN 16 -13 June 10, 2013 Subject: Nanak Creations Inca Page 7 The Rouge Park Neighbourhood Development Guidelines set out population targets for this neighbourhood based solely on sanitary sewer capacity. Due to additional lands required to protect key environmentally sensitive features within this neighbourhood, the amount of developable lands contemplated within this neighbourhood have been decreased. In order for the City to meet population targets for the Rouge Park Neighbourhood, an increase in density would be appropriate, where acceptable, on remaining developable lands. In 2000, an Official Plan Amendment was approved to facilitate the residential subdivision along Shadow Place that redesignated the lands from a "Low Density Area" to a "Medium Density Area" to permit the existing development of semi - detached dwellings in order to assist in reaching the population targets in this neighbourhood. The proposed development is consistent with the design goals and objectives of the Rouge Park Neighbourhood Development Guidelines. The Development Guidelines promote the lands around the intersection of Finch Avenue and Altona Road as the "Centre" of the neighbourhood. To support this focus, a higher concentration of activity and people is desirable within the area (relative to the rest of the neighbourhood). The proposed development supports the "neighbourhood focus" at the intersection through the orientation of the buildings fronting Finch Avenue and Altona Road. The development proposes appropriate massing and architectural detailing, which help establish a strong relationship with the intersection. The 3- storey townhouse units comply with the Guidelines which state that building heights preferably range from 3 to 5 stories to provide for a suitable visual focus within the Centre. The development of the subject lands with medium density residential uses will assist in achieving Council's objectives of establishing a neighbourhood focus at the intersection of Finch Avenue and Altona Road and meeting the population targets for the area. The proposal satisfies the direction of the Rouge Park Neighbourhood Development Guidelines. 3.4 Traffic issues are not anticipated as a result of this development Residents raised concerns with respect to the potential for higher traffic levels along Finch Avenue and Altona Road as a result of this residential development. Finch Avenue is a two -lane arterial roadway. Finch Avenue is under the Region's jurisdiction east of Altona Road, and is under the City's jurisdiction west of Altona Road. Altona Road is a two -lane arterial roadway under the jurisdiction of Durham Region. Report PLN 16 -13 Subject: Nanak Creations Inc. June 10, 2013 Page 8 The applicant has submitted a Traffic Impact Study, prepared by Trans -Plan Inc., dated January 14, 2013 in support of the proposal. The study examined the associated traffic impacts on adjoining roads and the intersection of Altona Road and Finch Avenue. The 23 unit townhouse development is expected to generate approximately 16 and 19 two -way trips in the weekday AM and PM peak hours, respectively. The Finch Avenue and Altona Road intersection is expected to operate at a good level of service with minimal delay and with reserve capacity in the peak hours under future total traffic conditions. No additional roadway improvements or changes to the existing intersection signal timing are required to accommodate additional traffic generated by the proposed development. No traffic concerns are anticipated as a result of this development. 3.5 Sufficient visitor parking is available to serve the proposed development Another concern raised by area residents included insufficient visitor parking spaces provided to support the residential development. There will be sufficient residential parking with each dwelling unit accommodating two vehicles, one within a garage and one on the driveway. Pickering's standard visitor parking ratio for a residential condominium development is 0.25 parking spaces per dwelling unit. Based on this ratio, the applicant is required to provide a total of 6 visitor parking spaces, whereas the proposal provides for a total of 7 visitor parking spaces. Through the site plan approval process, staff will review whether there is opportunities to provide for additional visitor parking spaces. 3.6 Proposed three storey townhouses are compatible with existing neighbourhood development Residents expressed concerns regarding the compatibility of the proposed 3- storey townhouse units with the existing 2- storey semi - detached dwellings along Shadow Place and potential impact on their privacy from the proposed development. The proposed 3- storey townhouse units will have an overall building height of approximately 10.0 metres, as measured from the mid -point of the roof to the established grade. The abutting 2- storey semi - detached dwellings along . Shadow Place have a building height of approximately 8.0 metres. In response to the concern regarding the compatibility of the proposed building height, the applicant has provided a minimum rear yard depth of 7.0 metres and a minimum side yard width of 3.0 metres to the existing residential development to the west and to the south, respectively. Report PLN 16 -13 Subject: Nanak Creations Inc. June 10, 2013 Page 9 In addition, the applicant has prepared a shadow study which provides a visual model of the impact of shadow cast by the proposed development at various recommended times and dates throughout the year. An accepted practice by municipalities is to maximize the use of private residential outdoor amenity spaces during the spring, summer and fall seasons. In order to accomplish this, shadow impacts should not exceed one hour in duration on private amenity areas, such as a backyard. This test is met if there are no new shadow impacts on adjacent development for more than two consecutive test times. The shadow study submitted by Nanak- Creations Inc. meets the minimum test as the shadow cast by the development does not exceed one consecutive test time. The shadow analysis demonstrates that the height of the proposed dwellings is acceptable and the proposed rear yard setbacks are of sufficient depth to prevent any major shadowing concerns for the residents along Shadow Place. The proposed townhouses along the western side of the subject lands, abutting Shadow Place, will not have decks attached to the second storey of the townhouses. The proposed zoning by -law amendment will include a provision ensuring that these properties will be limited to decks attached to the ground floor of the units. The restriction of decks to the main floor of the townhouses will ensure that privacy is maintained in the rear yard of the properties abutting the proposed development. The western and southern perimeter of the residential block is currently fenced to City standards. Conditions of Approval recommended in Appendix II to this Report include provisions to ensure that fencing is maintained in an acceptable condition around the subject lands during construction, and if damaged during construction the fence will be repaired /replaced to the City's satisfaction. Construction noise from the proposed development will also be dealt with through the Construction Management Plan, which requires compliance with the City's Noise By -law. Due to the findings of the shadow study and the restriction of decks to the ground floor of the townhouses, it is staff's opinion that the proposed development is compatible with the surrounding neighbourhood. 3.7 Drainage issues will be improved through the proposed development Another concern that was raised by the area residents was regarding the current drainage issues within the rear yards of the residents abutting the south end of the subject property. Some residents along Shadow Place backing onto the subject lands are currently experiencing drainage issues as the undeveloped lands appear to be draining onto these properties. The subject lands are presently undeveloped. The runoff from the lands through the site is generally from the north to the south, which currently impacts the residents along Shadow Place to the south of the subject property. Report PLN 16 -13 June 10, 2013 Subject: Nanak Creations Inc. Page 10 The development of the site will direct storm flow to the existing storm sewer on Altona Road and the existing catchbasin located in the southwest corner of the site. The development of the subject lands will manage the runoff generated on these lands by draining out to Altona Road, thereby improving the current situation of those residents along Shadow Place abutting the development. Engineering staff are generally satisfied with the recommendations of the revised Functional Servicing Report. 3.8 Sustainability Implications have been reviewed The applicant has submitted a review of the proposed development based on the City's Sustainable Development Guidelines. Staff's review of the application against the City's Draft Sustainable Development Guidelines resulted in a score below the Level 1 standard. Given the size of the infill development, there is limited opportunities to achieve Level 1. However, the proposed development does incorporate many of the elements of the Guidelines including: • infill development on a vacant site • efficient use of existing infrastructure with higher density uses and compact built form • maximizing overall site sodding and vegetation areas • committing to the use of materials, such as permeable pavers, to achieve a 25% increase in permeability relative to conventional methods • committing to use native plant material for at least 75% of public landscaped area In addition, there will be an opportunity to improve this rating as additional sustainability measures become available through the site plan approval process and detailed building design. 3.9 All Technical Matters will be addressed as Conditions of Subdivision and Site Plan Approval Process In order to ensure all technical matters are appropriately addressed by the applicant, City requirements will be imposed as conditions of approval for the subdivision application. These requirements will address matters such as, but not limited to: • drainage and grading • site servicing • stormwater management plan • noise attenuation • cash -in -lieu of parkland • contributions towards stormwater management • requirements for Construction Management Plan Report PLN 16 -13 June 10, 2013 Subject: Nanak Creations Inc. Page 11 Detail design issues will be dealt with through the site plan approval process. A site plan application is yet to be submitted. These requirements will address matters such as, but not limited to: • fagade designs and upgrades, including the dwellings flanking Altona Road and Finch Avenue • landscaping • visitor parking • emergency vehicle access No further reports are anticipated to be brought before Council if the applications are approved. 3.10 Common Element Condominium application The applicant has submitted an application for Draft Plan of Condominium proposing a common element condominium for private internal roads, visitor parking spaces, parkette, mailboxes, pedestrian walkway to Altona Road and water meter room. A common element condominium refers to a development where each dwelling unit is individually owned (freehold ownership), and where amenities or physical features are collectively owned by the unit owners as tenants in common. It is anticipated that a future common element condominium corporation will be established to permit a community of individually owned homes with maintenance of the development's joint services, amenities and physical features provided through a common element condominium corporation. In accordance with Council policy and Delegation By -law 5391/01, the Director, City Development has the authority to grant draft plan approval for plans of condominium; therefore no further approvals are required from City Council. 3.11 Zoning By -law to be finalized and forwarded to Council for enactment The subject lands are currently zoned "A" — Rural Agricultural. The applicant is proposing to rezone the subject lands with an urban residential zone that would permit a multi -unit residential townhouse development consisting of a maximum of 23 units. To ensure compatibility with the surrounding community and an appropriate design, the zoning by -law will include performance standards for maximum building height, minimum and maximum yard setbacks, and minimum number of residential and visitor parking spaces. It is recommended that a draft by -law be prepared and forwarded to Council for enactment. 3.12 Applicant's Comments The applicant has been advised of the recommendation of this report. Report PLN 16 -13 Subject: Nanak Creations Inc. Appendices June 10, 2013 Page 12' Appendix I Draft By -law to adopt Amendment 24 to the Pickering Official Plan Appendix II Recommended Conditions of Approval for Draft Plan of Subdivision SP-2012-02 Appendix III Recommended Conditions of Approval for Zoning By -law Amendment Application A 5/12 Attachments 1. Location Map 2. Applicant's Original Plan 3. Applicant's Revised Plan 4. Applicant's Draft Plan of Subdivision Prepared By: Melissa arkham ,MCIP, RPP Principal Planner — Development Review Nilesh Surti, MCIP, RPP Manager, Development Review & Urban Design MM :Id Recommended for the consideration of Pickering City Cpgncil _ Tony Prevedel, P.Eng. Chief Administrative Officer Approved /Endorsed By: 47e4_�,_e� Catherine Rose, MC"[ P(, RPP (Acting) Chief Planner z< Thomas Melyrriuk, M 1121 , RPP Director, City Develo ment z 7, 2or3 Appendix I to Report PLN 16 -13 Draft By -law to Adopt Amendment 24 To the Pickering Official Plan The Corporation of the City o ickering By -law Being a by -law to to adopt Amendment 24 to the Official Plan for the City of Pickering (OPA 12- 002 /P) Whereas pursuant to the Planning Act, R.S.O. 1990, c.p. 13, subsections 17(22) and 21(1), the Council of The Corporation of the City of Pickering may, by by -law, adopt amendments to the Official Plan for the City of Pickering; And whereas pursuant to Section 17(10) of the Planning Act, the Minister of Municipal Affairs and Housing has by order authorized Regional Council to pass a by -law to exempt proposed area municipal official plan amendments from its approval; And whereas on February 23, 2000 Regional Council passed By -law 11/2000 which allows the Region to exempt proposed area municipal official plan amendments from its approval; And whereas the Region has advised that Amendment 24 to the City of Pickering Official Plan is exempt from Regional approval; Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: That Amendment 24 to the Official Plan for the City of Pickering, attached hereto as Exhibit "A ", is hereby adopted. 2. That the City Clerk is hereby authorized and directed to forward to the Regional Municipality of Durham the documentation required by Procedure: Area Municipal Official Plans for Amendment 24. 3. This By -law shall come into force and take effect on the day of the final passing hereof. By -law read this day of 12013. p,PgFT David Ryan, Mayor r F Debbie Shields, City Clerk Amendment 24 to the Pickering Official Plan Purpose: The purpose of this amendment is to revise Schedule I - Land Use Structure of the Pickering Official Plan, to permit medium density residential development on the subject lands. Location: The amendment to Schedule I would affect lands known as Part of Lot 1, Plan 388 and Block 39, Plan 40M -2086. Basis: Through the review of Official Plan Amendment Application 12- 002 /P, Zoning By -law Amendment Application A 5/12, Draft Plan of Subdivision SP- 2012 -02, and Draft Plan of Condominium CP- 2012 -03, an amendment to the Pickering Official Plan has been determined to be appropriate. The proposed development establishes a higher intensity use at the neighbourhood centre of Finch Avenue and Altona Road through appropriate massing and architectural detailing. The proposed development establishes a strong relationship with the intersection, which is consistent with the goals and objectives of the Official Plan and the Rouge Park Neighbourhood Development Guidelines. Through the protection of environmental lands within the Rouge Park Neighbourhood, the amount of developable land has been reduced. In order to reach the population targets for this neighbourhood, it is appropriate to increase the density on the subject lands. In 2000, Council adopted OPA No. 5 to redesignate the lands along Shadow Place to permit medium density residential development. Actual Amendment: The City of Pickering Official Plan is hereby amended by: 1. Amending Schedule /—Land Use Schedule by replacing the "Urban Residential Areas — Low Density Areas" designation with "Urban Residential Areas — Medium Density Areas" designation, as illustrated on Schedule `A' attached to this amendment; Implementation: The provisions set forth in the City of Pickering Official Plan, as amended, regarding the implementation of the Plan shall apply in regard to this Amendment. Interpretation: The provisions set forth in the City of Pickering Official Plan, as amended, regarding the interpretation of the Plan shall apply in regard to this Amendment. Official Plan Amendment Application OPA 12 -002 /P Draft Plan of Subdivision SP- 2012 -02 Draft Plan of Condominium CP- 2012 -03 Zoning By -law Amendment Application A 5/12 Nanak Creations Inc. Part of Lot 33, Concession 1 City of Pickering June 24, 2013 \ � & \ \� % aA ± 3M §\ « 2 @m3 28 3mA 5 o � 7 )§ 7 } z io (Z �� /} 5 / §gym -A-A AaN \ � & \ \� % aA ± 3M §\ « 2 @m3 28 3mA 5 7 } z z (Z � z /} 5 / §gym § § g� : c cc 13 § LL LLJ - k }a « -j 2 § :zE®LLI § ;ozz2 ^~ \ \Mkuj k k \» ) ,Uj L Lu CC C . a w : c cc cc © . i� ... )� 3AIK \� \ �® k� [ \ \/ z 2; a \y o r I \0 E /R § 0 2 Q w U Q � w � . k Q ( 9z }� § ®; ` -�® §kz |\ §B \N ) kk1 r / 0 cc Ez \ \ \ \ \ W �._a °� ` \� \ § o w! ! |§ !§ 5 7 (Z /} 5 / § § §u k } § § k 3AIK \� \ �® k� [ \ \/ z 2; a \y o r I \0 E /R § 0 2 Q w U Q � w � . k Q ( 9z }� § ®; ` -�® §kz |\ §B \N ) kk1 r / 0 cc Ez \ \ \ \ \ W �._a °� ` \� \ § o w! ! |§ !§ r / 0 cc Ez \ \ \ \ \ W �._a °� ` \� \ § o w! ! |§ !§ Appendix II to Report PLN 16 -13 Recommended Conditions of Approval for Draft Plan of Subdivision SP- 2012 -02 Recommended Conditions of Approval for Draft Plan of Subdivision SP- 2012 -02 General Conditions That this recommendation apply to the draft plan of subdivision prepared by Land Survey Group, dated May 31, 2012, plan number LSG -1710A on lands being Part of Lot 1, Registered Plan 388 and Block 39, Plan 40M -2086, City of Pickering, for the creation of three blocks to accommodate a residential block, a road widening block and a 0.3 metre reserve block. Subdivision Agreement 2. That the Owner enters into a subdivision agreement with and to the satisfaction of the City of Pickering to ensure the fulfillment of the City's requirements, financial and other wise, which shall include, but not necessarily be limited to the conditions outlined in this document. Zoning 3. That the implementing by -law for Zoning By -law Amendment Application A 5/12 becomes final and binding. Street Names 4. That street names and signage be provided to the satisfaction of the Region and the City. Development Charges & Inspection Fee 5. That the Owner satisfies the City financially with respect to the Development Charges Act. 6. That the Owner satisfies the City for contributions for development review and inspection fees. Phasing 7. That if this subdivision is to be developed by more than one registration, the Owner will be required to submit a plan showing the proposed phasing, all to the satisfaction of the City. Recommended Conditions of Approval (SP- 2012 -02) Page 2 Dedications /Transfers /Conveyances 8. The dedication of all road allowances with the proper corner roundings and sight triangles to the City and any other easements as required. 9. That the Owner convey, at no cost, Block 3 for road widening purposes (Finch Avenue) and Block 2 for 0.3 metre reserve. Architectural Control 10. That the Owner, prior to the preparation of the subdivision agreement, shall engage a control architect, to the satisfaction of the Director, City Development, who will prepare a siting and architectural design statement reflecting the principles of the Rouge Park Neighbourhood Development Guidelines to the City's satisfaction, approve all models offered for sale and certify that all building permit plans comply with the City's approved statement. Stormwater 11. That the Owner satisfies the Director, Engineering & Public Works Department respecting a stormwater drainage and management system to service the lands in the development in accordance with the revised Functional Servicing Plan, dated April 2013, and any provision regarding easements. 12. That the Owner satisfies the Director, Engineering & Public Works Department for contributions for the Rouge Park Neighbourhood Cost Sharing fees. 13. That the Owner satisfies the Director, Engineering & Public Works Department to maintain all stormwater management and erosion and sedimentation control structures operating and in good repair during the construction period. Grading 14. That the Owner satisfies the Director, Engineering & Public Works Department respecting submission and approval of a grading and control plan. 15. That the Owner satisfies the Director, Engineering & Public Works Department respecting the submission and approval of a geotechnical soils analysis. Fill & Topsoil 16. The City's Fill & Topsoil By -law prohibits soil disturbance, removal or importation to the site unless a permit has been issued. No on -site works prior to draft plan approval is permitted. A Fill & Topsoil Permit will be required should grading works proceed prior to a subdivision agreement. Recommended Conditions of Approval (SP- 2012 -02) Road Allowances Page 3 17. That the Owner satisfy the Director, Engineering & Public Works Department respecting construction of roads with curbs, sewers, sidewalks and boulevard designs along Finch Avenue and Aitona Road. Construction /Installation of City Works & Services 18. That the Owner satisfy the Director, Engineering & Public Works Department respecting construction of roads, storm sewers, pedestrian walkways and boulevard designs through a site servicing plan. 19. That the Owner satisfies the City respecting arrangements for the provision of all services required by the City. 20. That the Owner satisfy the appropriate authorities respecting arrangements for the provision of underground wiring, street lighting, cable television, natural gas and other similar services. 21. That the cost of any relocation, extension, alteration or extraordinary maintenance of existing services necessitated by this development shall be the responsibility of the Owner. Easements 22. That the Owner convey to the City, at no cost, any easements as required; and, any reserves as required by the City. 23. That the Owner conveys any easement to any utility provider to facilitate the installation of their services in a location(s) to the satisfaction of the City and the utility provider. 24. That the Owner arrange at no costs to the City any easements required on third party lands for servicing and such easements shall be in a location as determined by the City and /or the Region and are to be granted upon request at any time after the draft approval. 25. That the Owner satisfy the Director, Engineering & Public Works Department any required easement for works, facilities or use rights that are required by the City of Pickering. Construction Management Plan 26. That the Owner make satisfactory arrangements with the City respecting a construction management plan, such Plan to contain, among other things: Recommended Conditions of Approval (SP- 2012 -02) Page 4 (i) details of erosion and sedimentation controls during all phases of construction and provide maintenance requirements to maintain these controls as per the Erosion & Sediment Control Guideline for Urban Construction; (ii) addressing the parking of vehicles and the storage of construction and building materials during servicing and house construction, and ensuring that such locations will not impede the flow of traffic or emergency vehicles on existing streets; (iii) assurance that the City's Noise By -law will be adhered to and that all contractors, trades and suppliers are advised of this By -law; (iv) the provision of mud and dust control on all roads within and adjacent to the site; (v) type and timing of construction fencing; (vi) location of construction trailers; and (vii) details of the temporary construction access. Fencing 27. That the Owner satisfies the City with respect to the provision of temporary fencing around the entire perimeter of the subject lands during construction, prior to the commencement of any works. 28. That the Owner agrees to replace or repair any permanent fencing along the rear lot lines for the lots abutting the development along Shadow Place to the satisfaction of the City if any damage occurs during construction. Landscaping 29. That the Owner submits a street tree planting plan to the satisfaction of the City, including a special treatment of the abutting boulevards to Finch Avenue and Altona Road. Noise Attenuation 30. That the Owner agrees in the subdivision agreement to implement noise control measures and warning clauses as recommended in the report, Environmental Noise Assessment, prepared by HGC Engineering. Engineering Plans 31. That the Owner ensure that the engineering plans be coordinated with the streetscape /siting and architectural design statement and further that the engineering plans coordinate the driveway, street hardware and street trees to ensure that conflicts do not exist, asphalt is minimized and all objectives of the streetscape /siting and architectural design statement can be achieved. Recommended Conditions of Approval (SP- 2012 -02) Page 5 32. That the Owner satisfy the City respecting the submission of appropriate engineering drawings that detail, among other things, City services, roads, storm sewers, sidewalks, lot grading, streetlights, fencing and tree planting, and financially- secure such works. 33. That the engineering plans be coordinated with the architectural design objectives. Parkland Dedication 34. , That the Owner shall pay the City cash -in -lieu to satisfy the parkland dedication requirements of the Planning Act. utility 35. That the Owner, through the approval of the Utility Coordination Plan for the location, is to enter into an agreement with Canada Post Corporation for the provision of a Community Mailbox including technical specification, notice requirements and financial terms. 36. That the Owner enters into a model home agreement with the City, if applicable for this draft'plan. All model homes must satisfy all requirements of the siting and architectural design statement. Other Approval Agencies 37. That any approvals which are required from the Region of Durham, the TRCA, or any utility for the development of this plan be obtained by the Owner, and upon request written confirmation be provided to the City as verification of these approvals. Appendix III to Report PLN 16 -13 Recommended Conditions of Approval for Zoning By -law Amendment Application A 5/12 Recommended Conditions of Approval for Zoning By -law Amendment Application A 5/12 1.0 That the implementing zoning by -law permit the establishment of multiple - dwelling horizontal units in accordance with the following provisions: (a) for units in Blocks 1 & 2: a. minimum lot frontage of 5.0 metres; b. minimum lot area of 110 square metres; c. maximum building height of 10.0 metres; d. minimum front yard setback of 1.5 metres; e. minimum rear yard setback of 7.0 metres; f. minimum interior side yard setback of 1.5 metres; g. minimum flankage side yard setback along Finch Avenue of 2.0 metres; h. decks shall only be permitted to project a maximum of 2 metres into the required rear yard from the ground floor of the building i. minimum one private garage per lot attached to the main dwelling and a minimum number of two parking spaces per dwelling unit; (b) for units in Blocks 3 & 4: a. minimum lot frontage of 5.0 metres; b. minimum lot area of 95 square metres; c. minimum building setback from Finch Avenue and Altona Road of 3.0 metres; d. maximum building setback from Finch Avenue and Altona Road of 4.0 metres; e. minimum one private garage per lot attached to the main dwelling and a minimum number of two parking spaces per dwelling unit; (c) setback exemptions for the water metre building (d) maximum of one block of multiple - dwelling horizontal units is permitted to be constructed for use as a model home (e) provide other appropriate zoning provisions as required. ATTACHMENT # I TO REPORT # ALN 16-13 0 Q O C.P.R. C. Q Z O H Q NPVEN CRES SUBJECT MAPLEVIE ROPERN o C FINCH AVENUE FINCH AVENUE = D o Q � O O L PLACE \OO� 00 C�0�0 Z O Q w F � U U O �Cj SPARROW City of Pickering City Development Department PROPERTY DESCRIPTION Part of Lot 1, Plan 388, Block 39, Plan 40M -2086 OWNER Nanak Creations Inc. DATE Apr. 26, 2013 DRAWN BY JB FILE No. SP 2012 -02, CP 2012 -03, OPA 12 -002P, A 05/12 SCALE 1:5000 CHECKED BY MM Al aTe ranetr Enterprises Inc. and its s,ppli a rs. All rigHts Reserved. Not a plan of s„rve,.. 2012 MPAC and its sup liens. All ri , . Reserved. Not o plan of Su-e . PN -14 ATTACHMENT # a TO REPORT # Information Compiled From Applicant's Original Condominium Plan SP- 2012 -02, CP- 2012 -03, OPA 12 -002P & A 05/12 - Nanak Creations Inc. 5PROPOSED VISITOR PARKING SPACES FINCH AVENUE i_ Jlii_ ROAD WIDENING s I I I I I I I I I I I I' r00� I I I I I I O I I I I I I I li O I I I I 1 I � •� I I I I I I j �fii� PROPOSED PRIVATE ROAD k. - - + - ; - - - -- 1 - - -- - +- --- -- I I - - - -- I I I 1 1� --- `------ i I 5 IPR©I �06E© TQWN;H0ME$ i i I I I 1 I I I I I —t— I i i i i i i i i- I 1 1 I I I I Ir - - - - -- `- 'I A 2PROPOSED ;. �.�j PARKETTE VISITOR PARKING SPA _ CES M) � I I, 1 I I I I I i i t Ili. O O� Q Z O Q N THIS MAP WAS PRODUCED BY THE CITY OF PICKERING PLANNING & DEVELOPMENT DEPARTMENT, PLANNING INFORMATION SERVICES DIVISION MAPPING AND DESIGN, FEBRUARY 13, 2012. ATTACHMENT # 3 TO REPORT # PLN " (02 -13 - - - Information Compiled From Applicant's Revised Condominium Plan SP-2012-02, CP-2012-03, OPA 12-002/P & A 05/12 -Nanak Creations Inc. LU ti- cr_ FINCHAVENUE 7,,m LANE EXISTING RESIDENTIAL (z ATTACHMENT # 1/ TO REPORT # PUS I L i l Information Compiled From Applicant's Submitted Draft Plan of Subdivision SP 2012 -02, CP2012 -03, OPA 12 -0002P & A 05/12 - Nanak Creations Inc. FINCH AVENUE BLOCK 3 ROAD WIDENING BLOCK 2 to 0 Q O Q Z O J a N THIS MAP WAS PRODUCED BY THE CITY OF PICKERING PLANNING & DEVELOPMENT DEPARTMENT, PLANNING INFORMATION SERVICES DIVISION MAPPING AND DESIGN, FEBRUARY 13, 2012. Report to Executive Committee PICKERING Report Number: FIN 13 -13 Date: June 10, 2013 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: 2012 Year End Audit Recommendation: 1. That Report FIN 13 -13 of the Director, Corporate Services & Solicitor be received; 2. That the Year -end Communication Report as submitted by Deloitte LLP ( Deloitte) be received for information; and, 3. That the 2012 draft Audited Consolidated Financial Statements for the City of Pickering be approved. Executive Summary: Attached to this report is the auditor's Year -end Communication Report and the draft Audited Consolidated Financial Statements for the year ended December 31, 2012. Again this year, the auditor has provided an unmodified audit report on the financial statements which means that the financial statements present fairly, in all material respects, the financial position of the City and its operations, assets and cash flows in accordance with Canadian public sector accounting standards. Staff are pleased to advise that the auditor did not identify any deficiencies in the audit to report to Council and therefore, again this year, the auditor has not issued a management letter. Financial Implications: The financial results for 2012 were once again favourable in all respects. However these results, as in prior years, are primarily a result of one -time occurrences and cannot be relied upon to continue on an annual basis into the future. In summary, the Balance Sheet continues to improve with total assets increasing from $358.2 million to $365.7 million while liabilities increased from $79.7 million to $84.1 million resulting in a net overall improvement of $3.1 million. Expenditures were well within budget. Although revenue is under budget, this is primarily a timing difference between budget approval and receipt or recognition of the funds which is explained in greater detail in the discussion section. Obligatory Reserve Funds which are provided for specific purpose under legislation and reported as deferred revenue, increased by almost $4.5 million to $47.6 million primarily due to the Report FIN 13 -13 June 10, 2013 Page 2 net change with development charges ($3.4M) and Federal Gas Tax funds ($1.0M). Total discretionary, at Council's direction, Reserves and Reserve Funds decreased by $1 million to $32.6 million almost all of which has been set aside for specific purposes by Council. Long term liabilities decreased by $1.4 million however internal borrowings from the Obligatory Reserve Funds increased by $2.3 million. Overall the City's financial position is healthy. A strong balance sheet provides assurances to the City's lenders, bankers, ratepayers and businesses that the City is able to meet its financial commitments. Discussion: The audit of the consolidated financial statements for the year ended December 31, 2012 has been completed. The auditor's Year -end Communication Report is included as Attachment 1. This report, prepared by Deloitte, summarizes the results of the December 31, 2012 audit and comments on significant matters regarding the audit or other matters they may believe to be of interest to Council. The independence letter in Appendix 1 confirms that Deloitte is independent with respect to the City. Appendix 2 illustrates the draft management representation letter which is provided by the City to the auditors. This letter indicates that the Financial Statements are management's responsibility and that management has provided and disclosed all necessary information to ensure the Financial Statements are not materially misstated. This letter will be signed by the Chief Administrative Officer and the Treasurer upon approval of the financial statements by Council. Appendix 3 provides a summary of certain items Deloitte is required to communicate to the Executive Committee. During the course of the audit, the auditors may find misstatements that may or may not be adjusted due to materiality. For 2012 there were two items in respect of which adjustments were not made, as they would not have a material effect on the financial statements. Further explanation of these unadjusted amounts is provided on page 3 of the auditor's Year -end Communication Report. The scope of the audit does not include an in -depth evaluation of all systems or internal controls; however, the auditors may report on matters that come to their attention during the course of their review. No matters came to their attention to report in a management letter and as such one has not been issued. The draft Audited Consolidated Financial Statements are included as Attachment 2. These statements are the responsibility of management and have been prepared by City accounting staff under the direction of the (Acting) Division Head, Finance & Treasurer. The auditors are responsible to express an opinion on these Consolidated Financial Statements based on their audit. An unmodified audit report has been provided. The Consolidated Financial Statements include the activities of the City of Pickering Public Library Board. The City's investment in Veridian Corporation is Report FIN 13 -13 June 10, 2013 Page 3 accounted for on a modified equity basis, which means the City includes its share of Veridian's income or loss in the Consolidated Financial Statements. The Consolidated Financial Statements are prepared on the full accrual basis of accounting as prescribed by the Public Sector Accounting Board (PSAB), which includes reporting tangible capital assets. Tangible capital assets, such as land, building, infrastructure and equipment are capitalized (recorded) at cost on the Statement of Financial Position (Balance Sheet) and amortized (depreciated, except for land) over their estimated useful lives in current operating expenses. The Statement of Financial Position includes tangible capital assets under the non - financial asset section and shows Accumulated Surplus. Statement of Financial Position Financial assets are those assets which could provide resources to discharge existing liabilities or finance future operations. The financial assets increased by approximately $2.8 million. This increase was offset by an increase in liabilities of approximately $4.4 million which led to a decrease in net financial assets of $1.6 million over the prior year. The increase in financial assets is primarily due to an increase of $2.3 million in the value of the City's Investment in Veridian Corporation. This represents the City's share of Veridian Corporation's net earnings ($4.2M) net of dividends paid to the City ($1.9M) during the year. The main contributor to the increase in liabilities is an increase in Deferred Revenue of $4.9 million. The deferred revenue balance consists primarily of the Obligatory Reserve Fund amounts such as Development Charges, Parkland Contributions, Federal Gas Tax and Third Party /Developer's Contributions. The Federal Gas Tax installment received in November and the overall increase in Development Charges collected has contributed to the increase in deferred revenue. Non - financial assets includes tangible capital assets which is the net book value (cost less accumulated amortization) of the City owned assets including land, buildings, roads, bridges & sidewalks infrastructure, storm sewer infrastructure, furniture and fixtures, vehicles and equipment. Non - financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. Statement of Operations Revenue reported includes both operating and capital. Therefore, variances between budget to actual may arise due to timing of approval in the capital budget and actual receipt of funds /recognition of revenue. This is clearly illustrated with the Government grants and fees revenue item. The budget amount includes a $6 million Federal and Provincial grant expected for the Frenchman's Bay Harbour Entrance project. However, Report FIN 13 -13 June 10, 2013 Page 4 the funding agreement was signed in early 2013 with the grant funds being received at the end of March 2013. Therefore, the actual revenue is much lower than the budget. The Sale of land revenue item is another example. The City is expected to be selling land in the Duffin Heights area over the next five years to fund related development costs within the same area. At December 31St, no land had been sold as the City was still finalizing its disposition strategy. That is why actual revenues from land sales show zero on the Statement of Operations. The capital budget expenditures do not show on the Statement of Operations as capital expenditures. For those expenditures that meet the definition of a tangible capital asset (TCA), the cost is reported on the Statement of Financial Position (Balance Sheet). Only a portion of the asset's cost is included as an amortization expense each year over the life of the asset in the operating expenses reported on the Statement of Operations. The amortization expense is included in operating expenses for the asset's respective functional category. For example, amortization on a fire truck is included under the Protection to Persons and Property category. Capital budget expenditures that do not meet the TCA definition are included as operating expenses under the appropriate functional category. The budget figures reported need to reflect the change in reporting for capital budget expenditures to be PSAB compliant. Note 17 of the City's consolidated financial statements reflects the changes made to the 2012 Council approved budget to put it on a basis consistent with the full accrual basis of accounting which incorporates tangible capital asset reporting. Of the 2012 budgeted capital expenditures, a total of $1.315 million were not deemed tangible capital assets and were included in the operating expenses. Actual expenses are under budget in almost all functional areas. This illustrates City staff's commitment to controlling expenditures. There is not one specific area that stands out as to contributing to the overall underage. It is reflected throughout the various cost centres. Accumulated Surplus The components that make up the Accumulated Surplus are disclosed in Note 11 of the City's consolidated financial statements and are summarized below. It must be emphasized that these amounts are not surplus funds in the traditional sense. The accumulated surplus balance essentially represents the difference between assets and liabilities of the City. What primarily contributes to this balance are the tangible capital assets of approximately $192.6 million and the City's equity in Veridian Corporation of approximately $72.8 million. The accumulated surplus is comprised of the following: Operating fund $ 125,170 Capital fund 8,645,992 Report FIN 13 -13 Reserves and reserve funds Equity in Veridian Corporation Tangible capital assets Post employment benefits liability WSIB benefit liabilities Internal loans Net long -term liabilities Attachments: June 10, 2013 Page 5 32,610,667 72,835,384 192,638,717 (3,473,600) (907,759) (3,113,545) (17, 775, 020) $281,586,006 1. Auditor's Year -end Communication Report 2. 2012 Draft Audited Consolidated Financial Statements Prepared By: Kri tine Senior, CA Manager, Accounting Services Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer Approved / Endorsed By: Stan Karwowski (Acting) Divi 25 Head, Finance & Treasurer Paul Bigioni Director, Co Z7,2-01 & City Solicitor I !n- Lei k dl (7-1 ATTACHMENT # I TO REPORT #jLtf4 B- 13 The Corporation of the City of Pickering Year -end communication For the year ended December 31, 2012 For presentation to the Executive Committee June 10, 2013 Deloitte. Deloitte LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 61-7 Canada Tel: 416- 601 -6150 Fax: 416-601-6610 www.deloitte.ca June 10, 2013 Private and confidential The Members of the Executive Committee The Corporation of the City of Pickering 1 The Esplanade Pickering ON L IV 6K7 Dear Executive Committee Members: Report on audited annual financial statements As agreed in our engagement letter dated October 22, 2012, we have performed an audit of the consolidated financial statements of the Corporation of the City of Pickering (the "City ") as at, and for the year ended, December 31, 2012, in accordance with Canadian generally accepted auditing standards ( "GAAS ") and expect to issue our audit report thereon on the date that the financial statements are approved. This report summarizes our findings from the audit which has been conducted in accordance with the Audit Plan that was presented to the Executive Committee at the meeting on November 12, 2012. Use of this report This report is intended solely for the information and use of the Executive Committee, management and others within the City and is not intended to, and should not, be used by anyone other than these specified parties. Accordingly, we disclaim any responsibility to any other party who may rely on it. We would like to express our appreciation for the cooperation we received from management and employees of the City with whom we worked to discharge our responsibilities. We look forward to discussing this report with you and to answering any questions which you may have. Yours truly, IRA Chartered Professional Accountants, Chartered Accountants Licensed Public Accountants © Deloitte LLP and affiliated entities. 2012 Year -end communication — The Corporation of the City of Pickering Table of contents Audit scope and findings ............................. Unadjusted differences ............................... Auditrisks ..................... ............................... Significant accounting practices .................. Appendix 1 - Independence letter Appendix 2 - Draft management representations letter Appendix 3 - Summary of communication requirements 4 © Deloitte LLP and affiliated entities. 2012 Year -end communication — The Corporation of the City of Pickering ii Audit scope and findings This report summarizes the main findings arising from our audit to, date. © Deloitte LLP and affiliated entities. 2012 Year -end communication — The Corporation of the City of Pickering 1 Audit results In accordance with Canadian GAAS, our audit was designed to enable us to express an opinion on the fairness of the presentation of the City's financial statements prepared in accordance with Canadian public sector accounting standards ( "GAAP ") issued by the Canadian Institute of Chartered Accountants. Our audit scope included the following (together, referred to as the "financial statements "): - Consolidated financial statements for the City of Pickering; - City of Pickering Public Library Board; and - City of Pickering Trust Funds. The December 31, 2012 audit was conducted in accordance with our audit plan, which was communicated to the Executive Committee on November 12, 2012. We confirm that there have been no significant amendments to the audit scope and approach communicated in the audit plan. Status of our audit We expect to be in a position to render our audit opinion on the financial statements of the City following approval of the financial statements by Council and the completion of the following outstanding procedures: • Receipt of legal letters; • Completion of our subsequent events procedures; • Receipt of signed management representations letter; and • Completion of the Engagement Quality Control review. Audit risks In accordance with our audit plan, our procedures focused on the following areas of audit risk: • Revenue /deferred amounts; and • Accounting estimates. We have summarized the results of our audit procedures for each of these risk areas as well as the risk of management override of controls on page 4 of this report. Use of the work of As planned external experts assisted in the audit to the extent we considered necessary: experts Actuarial experts Assisted with the assessment of the valuation and disclosure of employee future benefits. Internal control We obtained an understanding of internal control relevant to the audit, however not all controls are relevant to every audit. We evaluated the design of controls relevant to the audits and determined whether they have been implemented. We are not, however, required to determine whether all relevant controls are operating effectively. Canadian GAAS require us to report to the Committee any significant deficiencies that have come to our attention. We did not identify any significant deficiencies in internal controls over financial reporting during the year ended December 31, 2012. Fraud and illegal Based on the procedures we performed as required by CAS 240, The Auditor's Responsibilities acts Relating to Fraud in an Audit of Financial Statements, we are not aware of any illegal acts or fraudulent events with respect to the City during the year which in our judgement should be discussed with the Committee. Based on the results of our audit procedures, we are not aware of any circumstances that indicate any intent to misstate the financial statements. © Deloitte LLP and affiliated entities. 2012 Year -end communication — The Corporation of the City of Pickering 1 0 Deloitte LLP and affiliated entities. 2012 Year -end communication — The Corporation of the City of Pickering 2 Legal and Management is responsible for ensuring that the City's operations are conducted in accordance with regulatory applicable laws and regulations. The responsibility for preventing and detecting non - compliance rests compliance with management. The auditor is not, and cannot be held, responsible for preventing non - compliance with laws and regulations. Our procedures did not identify any areas of material non - compliance with laws and regulations by the City. Significant We believe management's selection of accounting policies to be appropriate under Canadian GAAP. accounting Our views on the significant quantitative and qualitative aspects of these accounting policies are policies presented on page 5 of this report. The City's significant accounting policies are set forth in Note 1 to the December 31, 2012 financial statements. Management Accounting estimates are an integral part of the financial statements prepared by management and judgment and are based on management's current judgments. These judgments are normally based on knowledge accounting and experience about past and current events, assumptions about future events and interpretations of estimates the financial reporting standards. During the year ended December 31, 2012, management advised us that there were no significant changes in the types of accounting estimates or in judgments relating to such estimates. Our views on the significant quantitative and qualitative aspects of the judgments and estimates made by the City's management are presented on page 5 of this report. Audit adjustments In accordance with Canadian GAAS, we request that all misstatements be corrected. and uncorrected misstatements We aggregate all uncorrected misstatements greater than 5% of materiality, and those that are quantitatively insignificant but qualitatively significant. There were no corrected misstatements arising from the audit. Uncorrected misstatements are summarized in our audit findings on page 3. Adjusted and In accordance with Canadian GAAS, we request that all disclosure deficiencies be corrected. unadjusted disclosure During the course of the audit, we did not identify any significant adjusted or unadjusted disclosure deficiencies deficiencies. Post - balance Management is responsible for assessing subsequent events up to the date of the release of the sheet events financial statements. At the date of finalizing this report, we are not aware of any significant post - balance sheet events. The City's reporting entity is disclosed in Note 1 to the consolidated financial statements. Inter - entity Related party transactions and balances are eliminated on consolidation with the exception of Veridian Corporation. transactions Information related to Veridian Corporation balances and transactions can be found in Notes 4, 5 and 14. As part of our audit, we did not identify any unusual related party transactions which are not in the normal course of business. Representations A draft version of the representations letter to be signed by management is included in Appendix 2. letter Independence We have developed appropriate safeguards and procedures to mitigate threats to our independence or to reduce them to an acceptable level. Our annual independence letter is included in Appendix 1 Communications In our audit plan we committed to communicate certain items to the executive committee. These items are summarized in Appendix 3. Conclusion No restrictions have been placed on the scope of our audit. In performing the audit, we were given full and complete access to the accounting records, supporting documentation and other information requested. We expect to issue an unmodified Independent Auditor's Report on the financial statements of the City for the year ended December 31, 2012 once the outstanding items referred to above are satisfactorily completed and the financial statements are approved. 0 Deloitte LLP and affiliated entities. 2012 Year -end communication — The Corporation of the City of Pickering 2 Unadjusted differences During the course of the audit, some misstatements were identified and not adjusted. The impact on the financial statements had the adjustments been recorded is as follows: (1) OMERS - related expenses, erroneously recorded to accounts payable in 2011, therefore impacts 2012 expenses (2) Duffin Heights capital cost sharing amounts relating to 2012 not accrued as received after cut -off. 0 Deloitte LLP and affiliated entities. 2012 Year -end communication — The Corporation of the City of Pickering 3 Current balance Unadjusted factual misstatements (1) (2 Results if misstatements are adjusted Financial assets 172,173,685 - - 172,173,685 Liabilities 84,058,796 - 142,436 84,201,232 Net financial assets 88,114,889 (142,436) 87,972,453 Non - financial assets 193,471,117 142,436 193,613,553 Accumulated surplus 281,586,006 - - 281,586,006 Revenues 78,425,672 - - 78,425,672 Expenses 75,333,229 57,977 - 75,275,252 Annual surplus 3,092,443 57,977 - 3,150,420 Opening accumulated surplus 57,977 57,977 (1) OMERS - related expenses, erroneously recorded to accounts payable in 2011, therefore impacts 2012 expenses (2) Duffin Heights capital cost sharing amounts relating to 2012 not accrued as received after cut -off. 0 Deloitte LLP and affiliated entities. 2012 Year -end communication — The Corporation of the City of Pickering 3 Audit risks Our audit plan identified certain risk areas that we discussed with the Committee when reviewing the audit plan. The results of our audit work on these areas are set out below: ZM3� Revenue/ Revenue recognition of . Substantive testing to deferred grants and determine if restricted revenue contributions contributions (i.e. development charges, gas tax, etc.) and government • Satisfactory transfers have been recognized as revenue in the appropriate period Accounting Estimates require estimates management .Obtain documentation on judgments (i.e. management's controls mana g allowance for over the development of significant property tax accounting estimates for appeals, contingent any significant liabilities, estimated management estimates accrued liabilities, etc.) and assess risk • Focused review of calculations and support . Satisfactory • Discussions with management • Analytic review of related accounts • Assess outcome of retrospective review of estimates from prior years Management override of controls is a presumed area of risk in any financial statement audit due to management's ability to directly or indirectly override controls that otherwise appear to be operating effectively. We address this risk through testing the appropriateness of journal entries and other adjustments made in the preparation of financial statements. We look to the business rationale for significant transactions that are outside the normal course of business and review accounting estimates for bias. In addition, experienced Deloitte personnel were assigned to review these areas and professional skepticism was maintained throughout the audit. 0 Deloitte LLP and affiliated entities. 2012 Year -end communication — The Corporation of the City of Pickering 4 Significant accounting practices Significant accounting policies are those that are most important to the portrayal of the City's financial position and financial performance. In the course of our audit of the financial statements, we considered the qualitative aspects of the financial reporting process, including items that have a significant impact on the relevance, reliability, comparability and understandability of the information included in the financial statements. Significant accounting policies During the year ended December 31, 2012, there were no significant changes in previously adopted accounting policies or their application. In our judgment, the significant accounting practices, selected and applied by management are, in all material respects, acceptable under GAAP and are appropriate to the particular circumstances of the City. Management judgment and accounting estimates In our judgment, the significant accounting estimates made by management are, in all material respects, free of possible management bias and of material misstatement. The disclosure in the financial statements around estimation uncertainty is in accordance with Canadian GAAP and is appropriate to the particular circumstances of the City. Significant estimates include: Post - employment benefits liability $3,652,600 (2011 - $3,218,000) WSIB benefits liability $907,759 (2011 - $826,859) Allowance for doubtful taxes receivable $367,000 (2011 - $367,000) Allowance for doubtful accounts $521,604 (2011 - $621,604) Assessment appeals $381,355 (2011 - $882,145) © Deloitte LLP and affiliated entities. 2012 Year -end communication — The Corporation of the City of Pickering 5 Appendix 1 - Independence letter © Deloitte LLP and affiliated entities. 2012 Year -end communication — The Corporation of the City of Pickering )n- I Deloitte LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 61-7 Canada Tel: 416- 601 -6150 Fax: 416- 601 -6610 www.deloitte.ca May 15, 2013 Private and confidential The Members of the Executive Committee The Corporation of the City of Pickering 1 The Esplanade Pickering ON L1V 6K7 Dear Executive Committee Members: We have been engaged to audit the consolidated financial statements of the Corporation of the City of Pickering (the "City ") for the year ended December 31, 2012. You have requested that we communicate in writing with you regarding our compliance with relevant ethical requirements regarding independence as well as all relationships and other matters between the City, our Firm and network firms that, in our professional judgment, may reasonably be thought to bear on our independence. In determining which relationships to report, we have considered relevant rules and related interpretations prescribed by the appropriate provincial institute / ordre and applicable legislation, covering such matters as: (a) holding a financial interest, either directly or indirectly, in a client; (b) holding a position, either directly or indirectly, that gives the right or responsibility to exert significant influence over the financial or accounting policies of a client; (c) personal or business relationships of immediate family, close relatives, partners or retired partners, either directly or indirectly, with a client; (d) economic dependence on a client; and (e) provision of services in addition to the audit engagement. We confirm to you that the engagement team and others in the firm as appropriate, the firm and, when applicable, network firms have complied with relevant ethical requirements regarding independence. We have prepared the following comments to facilitate our discussion with you regarding independence matters arising since May 18, 2012, the date of our last letter. The Corporation of the City of Pickering May 15, 2013 Page 2 We are not aware of any relationships between the City and our Firm, including any network firms that, in our professional judgment, may reasonably be thought to bear on independence, that have occurred from May 18, 2012 to May 15, 2013. We hereby confirm that we are independent with respect to the City within the meaning of the Rules of Professional Conduct of the Institute of Chartered Accountants of Ontario as of May 15, 2013. This report is intended solely for the use of the Executive Committee, Council, Management, and others within the City and should not be used for any other purposes. Yours truly, Chartered Professional Accountants, Chartered Accountants Licensed Public Accountants Appendix 2 -Draft management representations letter © Deloitte LLP and affiliated entities. 2012 Year -end communication — The Corporation of the City of Pickering [Client letterhead] June 10, 2013 Deloitte LLP 5140 Yonge Street Suite 1700 Toronto, ON M2N 6L7 Attention: Ms. Paula Jesty Dear Ms. Jesty: Subject: Consolidated financial statements of The Corporation'of,the City of Pickering for the year ended December 31, 2012 This representation letter is provided in connection with the audit by Deloitte LL ( "Deloitte" or "you ") of the consolidated financial statements of The Corporation of the`City of Pickering (the "City" or "we" or "us ") for the year ended December 31, 2012 and a summary.-6f significant accounting policies and other explanatory information (the "Financial Statements") -f6iAe purpose of expressing an opinion as to whether the Financial Statements present fairly,'ih all material respects, the financial position, results of operations, and cash flows of the City in accordance with Public Sector Accounting Standards ( "PSAS "). We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves: Financial statements 1. We have fulfilled our responsibilities as set out in the terms of the engagement letter between the City and Deloitte dated`October'22, 2012 for the preparation of the Financial Statements in accordance with PSAS. In particular, the Financial Statements are fairly presented, in all material respects, and present °the financial position of the City as at December 31, 2012 and the results of its operations and its cash flows for "the year then ended in accordance with PSAS. 2. Significant assumptions used in making estimates, including those measured at fair value, are . reasonable. In preparing the Financial Statements in accordance with PSAS, management makes judgments and assumptions about the future and uses estimates. The completeness and appropriateness of the disclosures related to estimates are in accordance with PSAS. The City has appropriately disclosed in the Financial Statements the nature of measurement uncertainties that are material, including all estimates where it is reasonably possible that the estimate will change in the near term and the effect of the change could be material to the Financial Statements. The measurement methods, including the related assumptions and models, used in determining the estimates, including fair value, were appropriate, reasonable and consistently applied in accordance with PSAS and appropriately reflect management's intent and ability to carry out specific courses of action on behalf of the entity. No events have occurred subsequent to December 31, 2012 that require adjustment to the estimates and disclosures included in the Financial Statements. Deloitte LLP June 10, 2013 Page 2 There are no changes in management's method of determining significant estimates in the current year. 3. We have determined that the Financial Statements are complete as of June 10, 2013 as this is the date when there are no changes to the Financial Statements (including disclosures) planned or expected; all final adjusting journal entries have been reflected in the Financial Statements and the Financial Statements have been approved in accordance with our process to finalize financial statements. 4. We have completed our review of events after December 31, 2012 and up to the date of this letter. All events subsequent to the date of the Financial Statements and for which PSAS requires adjustment or disclosure have been adjusted or disclosed. Accounting estimates and disclosures included in the Financial Statements that are impacted by subsequent events have been appropriately adjusted. 5. The Financial Statements are free of material errors and omissions. We believe that the effects of any uncorrected Financial Statement misstatements pertaining to the current period presented, are immaterial, both individually_and in the aggregate, to the Financial Statements taken as a whole. A list of the uncorrected misstatements aggregated by you is attached in Appendix A. 6. The City has satisfactory title to and control overall a'ssets, and there are no liens or encumbrances on such assets. We have disclosed ,f you and in the Financial Statements all assets that have been pledged as collateral.` Information provided 7. We have provided you with: a. Access to all information of which we are aware that is relevant to the preparation of the Financial Statements, such as records, documentation and other matters. All financial statements and other financial information�provided to you accurately reflect the activities and expenses of the City and do not`reflect.any activities or expenses of any other person or entity; b. All relevant information as well as additional information that you have requested from us for the purpose of the audit; and, c. Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. 8. Except as listed in Appendix A, all transactions have been properly recorded in the accounting records and are reflected in the Financial Statements. 9. We have disclosed to you the results of our assessment of the risk that the Financial Statements may be materially misstated as a result of fraud. 10. We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves: a. Management; b. Employees who have significant roles in internal control; or c. Others where the fraud could have a material effect on the Financial Statements. Deloitte LLP June 10, 2013 Page 3 11. We have disclosed to you all information in relation to allegations of fraud, or suspected fraud, affecting the entity's Financial Statements and all knowledge of concerns or allegations of potential errors in the selection of accounting policies or the recording of transactions affecting the City that have been communicated by employees, former employees, or others, whether written or oral. 12. We have disclosed to you all communications from and, all known instances of non - compliance or suspected non - compliance with laws and regulations whose effects should be considered when preparing the Financial Statements. . 13. We have disclosed to you all communications from: a. taxation authorities concerning assessments or reassessments that could have a material effect on the Financial Statements; and b. regulatory agencies concerning noncompliance with or potential deficiencies in, financial reporting requirements. . 14. We have disclosed to you the identity of the entity's related.parties and`all the related party relationships and transactions of which we are aware, Jncluding guaranfees,,non- monetary transactions and transactions for no consideration and participation in a defined benefit plan that shares risks between group entities. 4x` 15. We acknowledge our responsibility for the d6sign,,implemen'tation and maintenance of internal control to prevent and detect fraud. 16. We have communicated to you al def ciencies in internal control of which we are aware. We have disclosed to you an change in the'Ci 's internal control over financial reporting that occurred Y Y g �'�.f � k during the current year that has = materially affected, ,-or is reasonably likely to materially affect, the City's internal control over financiaFreporting.—' 17. We have disclosed to you all known, actual or possible litigation and claims, whether or not they have been discussed with our lawyers, whose effects should be considered when preparing the Financial Statement`s: A sappropriate, these items have been disclosed and accounted for in the Financial Statements in accordance with PSAS. 18. We have disclosed to you all liabilities, provisions, contingent liabilities and contingent assets, including those associated with guarantees, whether written or oral, and they are appropriately reflected in the Financial Statements. 19. We have disclosed to you, and the City has complied with all aspects of contractual agreements that could have a material effect on the Financial Statements in the event of non - compliance, including all covenants, conditions or other requirements of all outstanding debt. Deloitte LLP June 10, 2013 Page 4 Various matters 20. The following have been properly recorded and, when appropriate, adequately disclosed and presented in the Financial Statements: a. losses arising from sale and purchase commitments; b. agreements to buy back assets previously sold; c. provisions for future removal and site restoration costs; d. financial instruments with significant individual or group concentration of credit risk, and related maximum credit risk exposure; e. arrangements with financial institutions involving compensating balances or other arrangements involving restriction on cash balances and line -of- credit or similar arrangements; f. all impaired loans receivable. Independence matters For purposes of the following paragraph, "Deloitte" shall mean Deloitte LLP, Deloitte s.e.n.c.r.l. and Deloitte Touche Tohmatsu Limited, including related member firms and affiliates. 21. Prior to the City having any substantive employment conve ations with a former or current Deloitte engagement team member, the City has held discussions with Deloitte and btained approval from the Executive Committee of the Council. Work of specialists 22. We agree with the work of specialists in evaluating the valuation of post - employment benefits liability and WSIB benefits liability and have adequately considered the qualifications of the specialist in determining amounts and disclosures used in the Financial Statements and underlying accounting records. We did not give`any,Anor cause any, instructions to be given to specialists with respect to values or amounts derived in dn'attempt to bias their work, and we are not aware of any matters that have impacted the independence or objectivity of the specialists. Liabilities and contingencies'_ �., 23. We have disclosed to�you all - liabilities; provisions, contingent liabilities and contingent assets, including those ass,ociated with guarantees, whether written or oral, and they are appropriately reflected in the Financial Statements. Loans and receivables 24. The City is responsible for determining and maintaining the adequacy of the allowance for doubtful notes, loans, and accounts receivable, as well as estimates used to determine such amounts. Management believes the allowances are adequate to absorb currently estimated bad debts in the account balances. Employee future benefits 25.. Employee future benefit costs, assets, and obligations have been properly recorded and adequately disclosed in the Financial Statements including those arising under defined benefit plans as well as termination arrangements. We believe that the actuarial assumptions and methods used to measure defined benefit plan assets, liabilities and costs for financial accounting purposes are appropriate in the circumstances. Deloitte LLP June 10, 2013 Page 5 Government transfers 26. We have disclosed to you all correspondence relating to government transfers that the City has had with the funding body. 27. We have assessed the eligibility criteria and determined that the City is an eligible recipient for the government transfers received. 28. We have assessed the stipulations attached with the funding and have recognized the revenue in accordance with meeting the stipulations required. Environmental liabilities /contingencies 29. We have considered the effect of environmental matters on the City, and have disclosed to you all liabilities, provisions or contingencies arising from environmental "Matters. All liabilities, provisions, contingencies and commitments arising from environmental matters, and the effect of environmental matters on the carrying values of the relevant.assets are recognized, measured and disclosed, as appropriate, in the Financial Statements. Government Business Enterprises and Government "Partnerships 30. The City has appropriately classified its investments in Ve'ridian Corporation as a Government Business Enterprise. 31. With regard to the City's investment in Veridian Corporation, we have disclosed to you any events that have occurred and facts that have been discovered with respect to such investment that would affect the investment's value as reported.in the financial statements. Yours truly, The Corporation of the City of Pickering Stan Karwoski Director, Corporate Services & Treasurer Tony Prevedel Chief Administrative Officer Appendix A The Corporation of the City of Pickering Summary of uncorrected financial statement misstatements Year ended December 31, 2012 The following unadjusted items were identified: Surplus Expenses $57,977 $57,977 To record OMERS related expenses erroneously recorded to accounts payable in 2011, therefore impacting 2012 expenses. Assets under construction $142,436 Accounts payable $142;436 To record capital cost - sharing amounts related to the Duffin Heights agreement pertaining to 2012 that were not accrued in the financial statements as received after cut'-off'. is , Appendix 3 - Summary of communication requirements In our audit plan, we committed to communicate certain items to the Executive Committee on a regular basis, or as specified events occur. These items are summarized below. 1. Our responsibilities under Canadian GAAS. See engagement letter dated October 22, 2012. 2. Our audit strategy and scope. Audit plan communicated on November 12, 2012. 3. Fraud or possible fraud identified through the audit process. None noted. 4. Illegal or possible illegal acts. None noted. 5. Significant transactions inconsistent with the normal course of business, None noted. including related party transactions. 6. Procedures performed on other public documents with which we are None. associated and the results thereof. 7. Management judgment and accounting estimates. Please refer to page 5 of this report. 8. Financial statement adjustments. None. 9. Uncorrected misstatements and disclosure deficiencies determined by management to be immaterial. Please refer to page 3 of this report. 10. Significant accounting policies. Please refer to page 5 of this report. 11. Alternative treatments for accounting policies and practices that have been discussed with management during the current audit period. Please refer to page 5 of this report. 12. Our views about significant qualitative aspects of the City's accounting practices, including accounting policies, accounting estimates and financial statement disclosures. Please refer to page 5 of this report. 13. Disagreements with management. None. 14. Our views about significant matters that were the subject of consultation with other accountants. None noted. 15. Major issues discussed with management prior to our retention. None. 16. Significant difficulties, if any, encountered during the audit. None. 17. Significant deficiencies in internal control, if any, identified in the conduct of the audit of the financial statements. No significant deficiencies noted. 18. Material written communications between management and us. Engagement letter dated October 22, 2012 and management representation letter — Appendix 2 of this report. 19. All relationships between the City and us that, in our professional Independence letter - Appendix 1. judgment, may reasonably be thought to bear on independence. 20. A statement that in our judgment, the engagement team and others in Independence letter - Appendix 1. our firm and, when applicable, network firms have complied with relevant ethical requirements regarding independence. 21. Non - compliance with laws and regulations that come to the auditor's None noted. attention. 22. Limitations placed on our scope. None. 23. Written representations the auditor is requesting. Draft management's representations letter — Appendix 2. © Deloitte LLP and affiliated entities. 2012 Year -end communication — The Corporation of the City of Pickering Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services. Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte operates in Quebec as Deloitte s.e.n.c.r.l., a Quebec limited liability partnership. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com /about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms ATTACHMENT #PTO REPORT Consolidated financial statements of The Corporatio of,the City of Pickeri g December 31, 2012 D �t FOR DISCUSSION PURPOSES ONLY A-� 3-13 The Corporation of the City of Pickering December 31, 2012 Table of contents Independent Auditor's Report ................. ............................... Consolidated statement of financial position .......................... Consolidated statement of operations ..... ............................... Consolidated statement of change in net financial assets ..... Consolidated statement of cash flows ..... ............................... Notes to the consolidated financial statements ..................... 1� ........................................... ............................... -2 .......... ............................... .. ............................... 3 .............................................. ............................... 4 .............................................. ............................... 5 ................................ ....:........ ...... ............ 6 ............................................. ...........................7 -24 Q FOR DISCUSSION PURPOSES ONLY Independent Auditor's Report To the Members of Council, Inhabitants and Ratepayers of the Corporation of the City of Pickering Deloitte LLP 5140 Yonge reet Suite 1700 Toronto O WN 61-7 Tel: 16- 601 -6150 F 416- 601 -6151 Oww.deloitte.ca A� We have audited the accompanying consolidated financial st e %eltf the Co poration of the City of Pickering, which comprise the consolidated statement of fi ncon as t December 31, 2012, and the consolidated statements of operations, change in net f anciao cash flows for the year then ended, and a summary of significant accounting policie and other expla tory information. Management's Responsibility for the Consolida#d Financial Management is responsible for the preparation//an fair presenta 'on of these consolidated financial statements in accordan/hopinion anadian pub c se Tthrepar nt' g standards, and for such internal control as management determcessary to nable ion of consolidated financial statements that are free from material ent, wh her due r error. Auditor's Responsibil Our responsibility is to n opinion on the consolidated financial statements based on our audit. We conducted our audi with Ca dian generally accepted auditing standards. Those standards require that w a equirements and plan and perform the audit to obtain reasonable assurance athe co olidated financial statements are free from material misstatement. An audit involves rforming proce res to obtain audit evidence about the amounts and disclosures in the consolidated nancial state s. The procedures selected depend on the auditor's judgment, including the a sessment of risk of material misstatement of the consolidated financial statements, whether due o f r error. making those risk assessments, the auditor considers internal control relevant to e ty's ep ation and fair presentation of the consolidated financial statements in order to desig audit pro es hat are appropriate in the circumstances, but not for the purpose of expressing an opi ion on the effect' eness of the entity's internal control. An audit also includes evaluating the appr priateness of ac unting policies used and the reasonableness. of accounting estimates made by m agement, as we as evaluating the overall presentation of the consolidated financial statements. We believe that fhe audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit oni on. FOR DISCUSSION PURPOSES ONLY Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the position of the Corporation of the City of Pickering as at December 31, 2012 and the results o operations, changes in its net financial assets and its cash flows for the year then ended in ac o with Canadian public sector accounting standards. Chartered Professional Accountants, Chartered Accountants Licensed Public Accountants June 10, 2013 Q FOR DISCUSSION PURPOSES ONLY Page 2 The Corporation of the City of Pickering Consolidated statement of financial position as at December 31. 2012 2012 2011 Financial assets Cash and cash equivalents 45,111,221 47,408,45 Investments (Note 3) 36,956,1 33,659K2,�'30 4 Taxes receivable 17,047 59 17,249 Ac counts receivable 3,2 ,0 3, ,81 Investment in Veridian Corporation (Note 4(b)) 44 23 4 ,473,124 Promissory notes receivable Note 5 ,069,000 5,069,000 112.173.685 169.399.984 Liabilities Accounts payable and accrued liabilities 12,451,636 12,104,482 Other current liabilities 92,0 85,259 Deferred revenue (Note 6) 49,179 33 44,327,687 Long -term liabilities (Note 9) 17,7 ,020 19,131,687 Post - employment benefit liability (Note 8(a)) 3 52,600 3,218,600 WSIB benefit liabilities Note 8(b)) 907,759 826,859 84,058,796 79.694.574 Net financial assets / / 88,114,889 89,705,410 Non - financial assets Tangible capital assets (Note 10) 192,638,717 187,940,852 Prepaid expenses D 593,381 618,043 Inventory 239,019 229,258 193 471,117 188,788,153 Accumulated surplus Note 11 _ 281,586,006 278.493.563 Approved by Council 1� The accompanying notes are an integral part of these financial statement. Page 3 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Consolidated statement of operations as at December 31, 2012 2012 2011 Budget Note 17 Actual Actual Revenues Residential and farm taxation 35,160,035 35,56 ,752 34,1 217 Commercial and industrial taxation 9,858,242 91 8,425 9, 66,405 Taxation from other governments 7,993,393 ,0 , 4 ,236,418 User charges 8,594,104 8,976,90 10,658,960 Government grants and fees 10,171,999 2,137,551 2,487,283 Other contributions and donations 2,556,500 894,383 834,092 Development charges and developer contributions earned 1,393,75 1,309,5 864,631 Contributed tangible capital assets - 1,747 05 681,938 Investment income 2501052 3 ,542 452,893 Penalties and interests on taxes 2, 0 2, 40,853 2,678,684 Fines 882,0 945,702 919,576 Interest on promissory notes 426,850 1,426,852 1,426,852 Sale of Land - - Equity share of Veridian Corporation /7,000,000 earnings (Note 4 (c)) - 4,177,240 3,838,176 Other 161,0 297,209 509,215 Gain on dis osal of tan ible ca ital assets - - 373,707 87,94 ,874 78,425,672 77,598,047 Expenses (Note 19) General government 4,933,977 12,895,782 13,580,197 Protection to persons and property 21,359,079 20,810,361 19,208,938 Transportation services 11,500,725 11,240,547 11,293,153 Environmental services 3,838,585 3,627,664 3,486,332 Social and family services 590,499 664,397 574,734 Recreational and cultural se is 24,006,768 23,537,837 23,272,214 Planning and developmen 3,372,320 2,385,419 2,586,148 Loss on disposal of tan le ca ita sets - 171,222 - 79,601,953 75,333,229 74,001,716 Annual surplus 8,345,921 3,092,443 3,596,331 Accumulated sur s, be innin of ar 278,493 563 278,493,563 274,897,232 Accumulated s r lus end of ye 286.839.484 281.586.006 278.493.563 l The accompanying notes are an integral part of these financial statement. Page 4 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Consolidated statement of change in net financial assets as at December 319 2012 Transfer of assets under construction to tangible capital assets 891,52 2012 2011 - 100, 2 Budget 99;,478 3,099,245 Note 17 Actual Actual Use of inventory of supplies - 1,112,422 1,373,621 Acquisition of prepaid expenses Annual surplus 8,345,921 Use of prepaid expenses 3,596, 1 Acquisition of tangible capital assets (30,094,625) /092, ( (13,09 736) Amortization of tangible capital assets 9,734,503 3,255,225 9, 0,560 Loss (Gain) on disposal of tangible capital assets - Net financial assets. end of vear 373,707) Proceeds on dis osal of tan ible ca ital assets - 531,023 (12.014.2011 (2.597.9001 225.471 Transfer of assets under construction to tangible capital assets 891,52 3,077,113 Assets under construction expensed - 100, 2 22,132 99;,478 3,099,245 Acquisition of inventory of supplies (,122,183) (1,211,343) Use of inventory of supplies - 1,112,422 1,373,621 Acquisition of prepaid expenses - (993,225) (614,183) Use of prepaid expenses - 1,017,887 382,414 - 14,901 69,491 Change in net financial assets (12,014, 1) (1,590,521) 3,255,225 Net financial assets, be innin of ear 89,70 ,410 89 705,410 86,450,185 Net financial assets. end of vear 1.209 88.114.889 89.705.410 The accompanying notes are an integral part of these financial statement. Page 5 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Consolidated statement of cash flows 2012 E 2011 Operating transactions Annual surplus 3,092,44 3,596,33 Non cash items (12,666,332) (9,317,553) Amortization of tangible capital assets 9,50 ,116 9,57 ,560 Loss (Gain) on disposal of tangible capital assets 1 1, 2 ( 3,707) Equity share of Veridian Corporation (,17 (,838,176) Contributed tangible capital assets recorded in revenue 1,747,10 (681,938) Change in non -cash operating items: 1,927 000 2,484,600 Decrease (increase) in taxes receivable 180,190 (1,222,379) Decrease in accounts receivable 295,296 310,610 Increase (decrease) in accounts payable and accrued liabilities 347,15 (1,068,897) Increase (decrease) in other current liabilities 6, 9 (9,222) Increase in deferred revenue 4,85 ,046 3,897,692 Increase in post - employment benefit liability 4,000 335,700 Increase (decrease) in WSIB benefit liabilities 80,900 (846,039) (Increase) decrease in inventory (9,761) 162,278 Decrease increase in prepaid expenses 24,662 231,769 Cash an cash v nt consists of 13,053,712 9,601,044 Capital transactions Acquisition of tangible capital assets (net of transfers and contributions) (12,666,332) (9,317,553) Proceeds on disposal of tangible ca ital as ets D 41 234 531,023 12 625,098 8,786,530 Investing transactions (Increase) decrease in investment (3,296,182) 287,195 Dividends received from Veridia Cor oration 1,927 000 2,484,600 1369,182 2,771,795 O Financing transactions Proceeds from debentur s issued 7/ 2,332,000 4,707,000 Principal repayment o debentures (3,688,667) 2,158,055 1356,667 2,548,945 (Decrease) incre a in cash and cas equivalents (2,297,235) 6,135,254 Cash and cash uivalents, be in n of ear 47 408,456 41,273,202 Cash and ca a 'valents a of ear 45,111,221 47,408,456 Cash an cash v nt consists of Cash 5,260,557 23,906,305 Ca equivalents 39,850,664 23,502,151 45,111,221 47,408,456 The accompanying notes are an integral part of these financial statement. Page 6 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2012 Significant accounting policies The consolidated financial statements ( "the financial statements ") of The Corporato of the City of Pickering (the "City ") are the representations of management prepared in accord ce with accounti standards established by the Public Sector Accounting Board ( "PSAB ") of the 9bnadian Institute Chartered Accountants. Significant accounting policies adopted by the City a a follows: (a) Reporting entity (i) Consolidated statements N / The consolidated financial statements reflect the assets, li ilities, revenues Od expenses of the reporting entity. The reporting entity is comprised oft a activities of all 96mmittees of Council and the City of Pickering Public Library Board #hich is controlled y the City. All material inter -fund transactions and balances are/eliminated on consVidation. (ii) Investment in Veridian Corporation The City's investment in Veridian Corporation accou for o a modified equity basis, consistent with generally accepted accounti g principles a e mmended by PSAB for investments in government business ente rises. Under the odifed equity basis, Veridian Corporation's accounting policies are no adjusted to confo 1 to those of the City and inter - organizational transactions and balan s are not elimina d. The City recognizes its equity interest in the annual earnings or to of Veridian Corp ration in its consolidated statement of operations with a corresponding i rease or decreas in its investment asset account. Dividends that the City may rece' e m Veridian rporation and other capital transactions are reflected as adjustments i he in as et account. (iii) Operations of School Boar and the R 'on Durham The taxation, other reve es, expenditures assets and liabilities with respect to the operations of the school boards a d the Region of D rham (the "Region ") are not reflected in these consolidated financi statements. (iv) Trust funds Trust funds pan t� ted oper tions administered by the City are not consolidated, but are reported se rat us Funds Statement of Financial Activities and Statement of Financial P sition. (b) Basis of 716basis unting / (i) Accr of accou ing Relenue and expen s are reported on the .accrual basis of accounting. The accrual basis of ccounting recogni es revenues as they are earned and measurable; expenses are recognized a are incur d and measurable as a result of the receipt of goods and services and the atl of a le al obligation to pay. (ii) Ca c h equivalents Cash an cash equivalents consist of cash on hand, demand deposits and short-term, highly liquid i estments that are readily convertible to known amounts of cash. Cash equivalents have short -term maturity of three months or less from the date of acquisition. (iii) In estments Long-term investments are recorded at cost and any loss in value which is considered other than temporary is recorded as appropriate. Any premium or discount at purchase of an investment is amortized over the life of the investment. Page 7 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2012 1. Significant accounting policies (continued) (b) Basis of accounting (continued) (iv) Tangible capital assets ( "TCA ") Tangible capital assets are recorded at cost less accumulated amo za ' n. Cost inclu es all costs directly related to acquisition or construction of the tangible ap' sset inclu ' g transportation costs, installation costs, design and engineering f es, ga s an site preparation costs. Amortization is recorded on a straight -line sis over the tt�'rated life of the tangible capital asset commencing once the asset is availa a for use as foli Buildings 15 to 45 yea Machinery and equipment 2 to 25 ye s Vehicles 5 to 15 y ars Infrastructure -Roads y ars Infrastructure - Storm sewers ea s Infrastructure - Sidewalks Information technology hardware ars /4to Infrastructure - Parks years Library collection materials ars Furniture and fixtures vears/ One -half of the annual amortization i charged in they r of acquisition and in the year of disposal. Assets under constructi0 are not amortize until the asset is available for productive use. Land is not amortized. Tangible capital assets receiv d as c n are recorded at their fair value at the date contributed, and that amou is also rec ed s revenue. (v) Accounting for Property ax Capping Provi ions resulting from the Ontario Fair Assessment System The net impact in pr perty taxes as a r suit of the application of the capping provisions does not affect the Con olidated Stateme of Operations as the full amounts of the property taxes were levied. Ho ev , he capping djustments are reported on the consolidated Statement of Financial Posi "on a ceivabl payable from /to the Region. (vi) Deferred r enue Deferre revenues repres t user charges and fees which have been collected but for which the rel ted services hav et to be performed. These amounts will be recognized as revenues in th fiscal year the s ices are performed. In addition, any contributions received with e rnal restrictions a deferred until the related expenditures are made. (vii) ost employment enefits e p ent va a of the cost of providing employees with future benefit programs is ni d a employees earn these entitlements through service. Actuarial gains and losses are i d over the average remaining service period ( "ARSP "). The actuary determined ARSP to e 14 years. (viii) Invent ry Inv ntory is valued at the lower of cost and replacement cost. Cost is determined on a w ighted- average basis. Page 8 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2012 1. Significant accounting policies (continued) (b) Basis of accounting (continued) (ix) Government transfers Government transfers are recognized in the financial statements in epenod in whic he events giving rise to the transfer occur, eligibility criteria and /or sti ul s are met, nd reasonable estimates of the amount can be made. (x) Intangible assets Intangible assets are not recognized as assets in the fina ial statements. (xi) Use of estimates The preparation of financial statements in conformit with Canadian p lic sector accounting standards requires management to make estimat a assumption that affect the reported amounts in the financial statements and a om ny' es. Acc unts involving significant estimates include allowance for doubtful acc o ts, ce accru liabilities, employee future benefits liabilities and estimates relating tot a useful lives t gible capital assets. Actual results could differ from these estimates. 2. Operations of school boards and the Regio of Durham Further to Note 1 (a) (iii) requisitions are ma a by the Region o Durham and School Boards requiring the City to collect property taxes and pay nts in lieu of pro rty taxes on their behalf. The amounts collected and remitted are summarizes folly Taxation Payments in lieu of taxes 3. Investments 2012 Cost Market value Reaion School board Lon -ter investments 36,956,156 37,660,143 33 659,974 34,334,282 Lonoer Anves ents re comprised of deposit notes and bonds. Page 9 FOR DISCUSSION PURPOSES ONLY 89,946,477 41,533,945 6,057,029 446,744 96,003,506 41,980,689 2011 Cost Market value Lon -ter investments 36,956,156 37,660,143 33 659,974 34,334,282 Lonoer Anves ents re comprised of deposit notes and bonds. Page 9 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Notes to the consolidated financial statements December 315 2012 4. Investment in Veridian Corporation (a) Veridian Corporation is owned by the City of Pickering, Town of Ajax, Mun/Veridian of Clarington d the City of Belleville. The City has a 41 per cent interest in Veridian Corpoeridian Corporation, as a government business enterprise, is accounted for on th d equity b is in these financial statements. Veridian Corporation serves as the electrical in utility f r a number of communities including the four noted above and conducts n- d utilit service ventures through its subsidiaries. The following table provides condensed supplementary consolid ed finanr tion for the corporation and its subsidiaries for the year ended December 3 The am disclosed in thousands of dollars: 2011 (0 (000's $ $ Financial position Assets Current 86,594 79,455 Capital and intangibles 191,528 183,895 Other 21,919 19,296 Total assets 300,041 282,646 Liabilities D Current 49,230 69,996 Long -term debt 115,553 86,649 Other 26,202 22,433 Total liabilities 190,985 179,078 Shareholders' equit Share capital O 67,260 67,260 Contributed pital 25 25 Retained a rnin s 41,771 36,283 Total equity" 109,056 103,568 Total lia ' ities and equity 300,041 282,646 Fin cial activities: 295,957 286,271 O a 117 4,313 E tarninr 285,618 285,142 E discontinued operations 268 3,919 Net earnin for the year 10,188 9,361 Page 10 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2012 4. Investment in Veridian Corporation (continued) (b) City of Pickering's investment represented by: (c) Equity in Veridian Corporation Balance, beginning of year Equity share of net earnings for Dividend received from Veridian 2012 70,585,144 4,177,240 2011 69,231,568 3,838,176 Balance, end of year (Note 11 72,835,384 70,585,144 (d) Contingencies and guarardees of Veridian Corporation (the "Corporation') as disclosed in their financial statements are /as follows: / (i) Insurance clai The Corpora 'on ' a ber o the Municipal Electric Association Reciprocal Insurance Exchange MEA w i h as created on January 1, 1987. A reciprocal insurance exchang may be de %d a group of persons formed for the purpose of exchanging recipro al contracts of in mnity or inter - insurance with each other. MEARIE provides general liabili insurance to me ber electric utilities. Insurance premiums harged to each member utility consist of a levy per $1,000 of service venue subject toO credit or surcharge based on each electric utility's claims experience. Insurance limits pf up to $30,000,000 per occurrence are covered by MEARIE. on tual o igation - Hydro One Networks Inc. ( "HONI ") T o tion's subsidiary, Veridian Connections Inc. ( "VCI "), is party to a connectior and cost co ery agreement with HONI related to the construction by HONI of a transformer station esignated to meet VCI's anticipated electricity load growth. Construction of the project was mpleted during 2007 and VCI connected to the transformer station during 2008. T the extent that the cost of the project is not recoverable from future transformation onnection revenues, VCI is obliged to pay a capital contribution equal to the difference between these revenues and the construction costs allocated to VCI. The construction costs allocated to VCI for the project are $9,975,000. The Corporation has recorded a liability and a corresponding intangible asset for $1,212,000 as at December 31, 2012 (2011 - $1,212,000), based on management's best estimate of the future transformation connection revenue shortfall. HONI shall perform a true -up based on actual load at the end of the fifth, tenth and fifteenth anniversaries of the in- service date. Page 11 FOR DISCUSSION PURPOSES ONLY 7012 2,011 Promissory notes receivable Note 5) 5,0 ,0 ,069,000 Investments in Veridian Corporation Initial investment in shares of the Corporation ZO 30,496,196 30,496,196 Accumulated earnings 31,487,3 27,310,109 Accumulated dividends received 8 ,369 02) (16,442,002) Increase in value of investments 1,1 ,821 1,108,821 Total investment 44 23,364 42,473,124 (c) Equity in Veridian Corporation Balance, beginning of year Equity share of net earnings for Dividend received from Veridian 2012 70,585,144 4,177,240 2011 69,231,568 3,838,176 Balance, end of year (Note 11 72,835,384 70,585,144 (d) Contingencies and guarardees of Veridian Corporation (the "Corporation') as disclosed in their financial statements are /as follows: / (i) Insurance clai The Corpora 'on ' a ber o the Municipal Electric Association Reciprocal Insurance Exchange MEA w i h as created on January 1, 1987. A reciprocal insurance exchang may be de %d a group of persons formed for the purpose of exchanging recipro al contracts of in mnity or inter - insurance with each other. MEARIE provides general liabili insurance to me ber electric utilities. Insurance premiums harged to each member utility consist of a levy per $1,000 of service venue subject toO credit or surcharge based on each electric utility's claims experience. Insurance limits pf up to $30,000,000 per occurrence are covered by MEARIE. on tual o igation - Hydro One Networks Inc. ( "HONI ") T o tion's subsidiary, Veridian Connections Inc. ( "VCI "), is party to a connectior and cost co ery agreement with HONI related to the construction by HONI of a transformer station esignated to meet VCI's anticipated electricity load growth. Construction of the project was mpleted during 2007 and VCI connected to the transformer station during 2008. T the extent that the cost of the project is not recoverable from future transformation onnection revenues, VCI is obliged to pay a capital contribution equal to the difference between these revenues and the construction costs allocated to VCI. The construction costs allocated to VCI for the project are $9,975,000. The Corporation has recorded a liability and a corresponding intangible asset for $1,212,000 as at December 31, 2012 (2011 - $1,212,000), based on management's best estimate of the future transformation connection revenue shortfall. HONI shall perform a true -up based on actual load at the end of the fifth, tenth and fifteenth anniversaries of the in- service date. Page 11 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2012 4. Investment in Veridian Corporation (continued) (d) (continued) (iii) Environmental liability In 2008, Environment Canada issued its final regulations governing a management PCBs. Costs relating to future expenditures associated with the r m9ol and destru ion of PCB - contaminated transformers and remediation of chemically on ted land has been estimated in the amount of $206,000, which has been record as a liabi t D cember 31, 2012. Because such expenditures are expected to be reco rable in future ra s, the Corporation has recorded an equivalent amount as a reg tory asset. (e) Lease commitments Future minimum lease payment obligations under operati g leases are as f ows: Promissory ote receivable fr Veridian Connections Inc. maturi Novem/dIlrondg-term and bearing interest at 7.62 ° / until April hen 5.57% from Ma 1, D1, 2014 and then the Ontario ergy rd debt rate for each successive thereafter 17,974,000 17,974,000 25.069.000 25.069.000 Interest reve a earned from these notes receivable totaled $1,426,852 (2011 - $1,426,852). The promissory otes from Veridian Corporation are convertible into common shares at the rate of one common hare for every $1,000 of principal amount, at the option of the City. Page 12 FOR DISCUSSION PURPOSES ONLY (000's) 2013 32 2014 32 2015 32 2016 24 2017 2 Thereafter 70 192 5. Promissory notes receivable 2012 2011 Promissory note receiv le Veridian orporation maturing December 1, 1 ear" g interest at the greater of 6% r the O o Ene y Board deemed long to debt rate on n nnual basis to maturity (6% ective Novembe 1, 2012) 7,095,000 7,095,000 Promissory ote receivable fr Veridian Connections Inc. maturi Novem/dIlrondg-term and bearing interest at 7.62 ° / until April hen 5.57% from Ma 1, D1, 2014 and then the Ontario ergy rd debt rate for each successive thereafter 17,974,000 17,974,000 25.069.000 25.069.000 Interest reve a earned from these notes receivable totaled $1,426,852 (2011 - $1,426,852). The promissory otes from Veridian Corporation are convertible into common shares at the rate of one common hare for every $1,000 of principal amount, at the option of the City. Page 12 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2012 6. Deferred revenue Page 13 FOR DISCUSSION PURPOSES ONLY 2P1 2 20 $ $ Obligatory Reserve Funds 572,089 92,868 Development charges 7, 2 4,107,294 Parkland 1,433,50 1,818,118 Federal gas tax 6,017,337 4,977,097 Third art /Develo er.s Contributions Reserve Fund . 2,670,168 2,233,978 47,607,0 4 43,136,487 Other unearned revenues 1,5 2,709 1,191,200 49 79,733 44,327,687 Continuity of deferred revenue is as follows: 2012 2011 Balance, beginning of year 44,327,687 40,429,995 Restricted funds received D 6,668,447 7,556,772 General funds received 767,617 74,724 Interest earned 928,717 795,497 8,364,781 8,426,993 Earned revenue transferred /o operations 3,512,735 4,529,301 Balance, end of year 49,179,733 44,327,687 O 7. InterfuX1O As a ming various capit acquisitions, funds are borrowed by the Capital Fund from Develorges deferred re enue (obligatory reserve funds). These funds are secured by promiswith interest r es ranging from 1.97% to 4.7% and various payment terms ranging from 1 years. The fi ancing arrangements and ultimate repayment are approved by Council through nt budget p cess. Although these notes have payment terms as noted above, they are repayaand. Th ollowing is a summary of the related loans: Page 13 FOR DISCUSSION PURPOSES ONLY 2012 2011 $ $ Roads ts 572,089 92,868 /stre Comm, libraries and pa rks 1,885,809 235,770 Protec 639,809 445,579 Enviroces - 11,962 Munici 15,838 20,669 3,113,545 806,848 Page 13 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2012 8. Post - employment benefit liability (a) Post - employment benefit liability The City makes available to qualifying employees who retire before /�near the opport ity to continue their coverage for benefits such as post- retirement extere benefit . Coverage ceases at the age of 65. The City also provides full time part -ti employees a sick time entitlement and any unused entitlement is ac toy ar. This accumulated entitlement is not vested and is forfeited at the time of rm ation. The most recent actuarial valuation of the post - employment benefits s performed at J uary 1, 2011. Information about the City's benefits liability is as follows: 2 2 2011 Accrued benefits liability, beginning of year ,218,600 2,882,900 Current service costs 341,000 257,100 Interest on accrued benefits 236,100 274,700 Amortization of actuarial losses 219,900 145,900 Benefits aid during the year (363,000 342,000) Accrued benefits liability, end of year 3,652,600 3,218,600 Accrued benefit obligation 6,350,100 6,136,000 Unamortized actuarial losses 2,697,500 2,917,400) Accrued benefits liability, end of ear 3,652,600 3,218,600 The main actuarial assumpt' ns employed in t actuarial valuations are as follows: (i) Discount rate The present val as at December 1, 2012 of the future benefits was determined using a discount rate o 3.� (2011 — 3. 5 %). (ii) Dental cost The den I cost tren e s 4.0% increase per annum. (iii) Healt costs He th costs were as med to increase at 7.8% in 2012 and decrease by 0.2% increments r year to an ultim a rate of 5.0% per year in 2026 and thereafter. llz� FOR DISCUSSION PURPOSES ONLY Page 14 The Corporation of the City of Pickering Notes to the consolidated financial statements December 315 2012 8. Post - employment benefit liability (continued) (b) Workplace Safety and Insurance Board (WSIB) benefit liabili/associate Effective January 1, 2001, the City became a Schedule II em Workplace Saf & Insurance Act and follows a policy of self insurance for the riith paying bene is for workplace injuries for all its employees. The WSIB administeted to work ace injuries and is reimbursed by the City. The most recent actuaa WSIB nefits was performed at December 31, 2011. Information about the City's WSIB liability is as follows: 01 2011 Accrued WSIB liability, beginning of year 59 1,672,898 Current service cost 00 /(77,400) 118,460 Interest on accrued benefits 00 105,300 Amortization of estimation adjustment gain - (996,074) Benefits aid during the year 73,725 Accrued WSIB liabilitv. end of vear 907,759 826,859 The main actuarial assumptions employ d in the actuarial luations are as follows: (i) Discount rate The present value as at Dec ber of a future benefits was determined using a discount rate of 3.75% (20 —3.75%. (ii) Inflation rate The rate of inflation s assumed to (iii) WSIB Administrat' n Rate Liabilities for IB nefits have e charged by I . 5% per annum. increased 25% to reflect the administration rate A WSIB serve was tablished in 2001. The Reserve Fund balance at December 31, 2012 w $2,532,549 1 - $2,374,028). In addition, the City purchased two insurance policie that protect the ty against significant claims to the City. The occupational accident insu nce pays loss cl 'ms up to $500,000 per work related accident. The excess workers co pensation indem ity insurance has a $500,000 deductible and will pay for claims up to d including $15, 0,000 per work related accident. 9. Long -kr itie (a) f s to g -term liabilities is made up of the following: 2012 2011 The m/uhicipality is responsible for the payment of pri cipal and interest charges on long -term H bilities issued by the Regional Municipality of Durham on the City's behalf. At the end of the year, the outstanding principal amount of this liability is 17,775,020 19,131,687 Page 15 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2012 9. Long -term liabilities (continued) (b) The above long -term liabilities have maturity dates of July 12, 2016, 2021 and 022, November 2018, July 15, 2014, December 23, 2014, October 15, 2015 and 2020 and ptember 29, 201 and 2021 with various interest rates ranging from 1.10% to 5.6 %. Principal rep yments are sum rized as follows: 14� 2013 2,598,256 2014 2,491,596 2015 2,085,073 2016 2,047,168 2017 2,078,852 Thereafter 6,474, 075 17,775,020 (c) Long -term liabilities include principal sums of $ 2,000 which may/be refinanced by the issuance of debentures over a further period not to excee 10 years, and $1, 72,000 which maybe refinanced by the issuance of debentures over a furth period not to exc ed 5 years. (d) The above long -term liabilities have bee approved by Co cil by -law. The annual principal and interest payments required to service t ese liabilities are ithin the annual debt repayment limit prescribed by the Ministry of Muni ci I s and Hou ng. (e) Interest expense recorded in the ar rela ' o e e long -term liabilities is $744,814 (2011- $734,143). 10. Tangible capital assets Information relating to tang/1a pital assets is follows: (i) Contributed tangible ssets The City records t gi c ital ass s contributed by an external party at fair value on the date contributed. /Tpi7 ale r ads , storm sewers and sidewalks installed by a developer as part of a subon or de pm nt agreement. Contributions of tangible capital assets in 2012 amounted to 47,105 (20 1 $681,938). (ii) Tangible gapital assets recognized at nominal value Land u der roads are as ned a nominal value of one Canadian dollar because this land only supp rts or is intended support road infrastructure and the majority of land acquired supporting road allowances was zicauired at no cost. (iii) WWbr�kof (iv) treasures The City a a useum which holds various historical treasures and historical buildings pertaining to the herltag and history of the City of Pickering. These items are not recognized as tangible capital asse in the financial statements because a reasonable estimate of the future benefits associate with such property cannot be made. Any acquisition or betterment of these assets is recogni d as an expense in the financial statements. T net book value of tangible capital assets not being amortized because they are under onstruction is $4,242,525 (2011 - $2,327,618). During the year, there were no write -downs of assets (2011 - $Nil) and no interest was capitalized during the year (2011 - $Nil). FOR DISCUSSION PURPOSES ONLY Page 16 O C = 0 N O R C C y O = E a y 'm 4 o o u R N N N 41 C N f6 N 11 C N 3 a 0) N (1 = U U O V c U O a N ffI O 'O Q N 0 a @ U � a Q aN) Q a r o 'o U m Q J co Q m Q J co z '01 f6 CL } J z w Q a a z O U) U O LL N N N! N N O O C Cl) a a O O m m m h h N N O C Cl) a a) 0 00 O O C C 0 000 e e09 L L� N f fA t to M M m m f fD M M m O O m m t0 A 0 0 0 n M f n o o a) D Do C Cl) a1 b b N N N N m 0 m m r a a) N N Cl) M M C f ffi m m f f0 m m f fn ' ' ' ' f fn 0 0 m (O M m � � N N N N c_ U C N O CA 2 2 N O a an d d N N N M M m m m m N N N O Q U Ou N ( (A m m m m L Lo m m m m m m N N u m m r r- m m m m v v 7 X O O O O O O m m V V M M m m .� m m � �2 N N m m ( (Or) _ LL m m m M M V V @ a a�i O O N N h h M M f fl7 N m m O O U N N M M O O m m N N M M M J N 7 L Lo L Lo f� M M O O \\2- N p O O m m M M m m N N N� N N m m N u u! O O L � m m m m N N M V V 1 12 m m N N O O m m m f f` V V O O m m m m M M m m R R O O m m O O m m m m m m N m M M E c° r r- m m m m r rn m m m n n U U L N N M M m m f fn � � m m n n o m m O O Y m m m m m m m L Lo �0 m m f f` N N M M m m m m N M M O O U N N N f f` M d M V M O 7 7 n t4 v _ M v r r r r m m N y f fl V V m m m m M M O M 0 V Lo u = 3 _ M 0 V O O U m m ui h� N N V I� n n O fn m m _ O N N _ �'N y y N N t to f _ m f- 7 7 (0 O m m m m V V V V M M C � •C . . ' N f fA m m L Lo M M m m m m m m m V V (U f N O N m m t ti o o M f V fah N f` r OG) N m r r) V f� V co = N M � � � � O O O f f� O O w � � M M � C C w ( (A m m m m N N m m N N M M m m m m m m O O L A�CD4�:: Lo 0 04 c co M m V V c cm� m V clj C m E V C) M M m m m 0 E m CIS O _ O O O m m m m - /�� L L J O O f f- M M M M N N m m M m m to N m m m m m m N N c m m m m m M co co L Lo m _. C C m ff) m oo m f f� O = _ a a m m o o f N V V o m o o m 0 0 M M —J m m m m m m m m m m N N m m 0 m m m m o off") ! M c M O ( (� ) ) ' 'O f fA m m L L V V O O C m m m m N N M M M M 6 N N m m M M O O N N N N 4-0 N m m m m m c N m co N O o o N CL o_ cc o y T N y d W M M E E2 N N m m w f V- O o O f O w O) N N f f0 V o O N f0 '01 f6 CL } J z w Q a a z O U) U O LL '0 m 01 (a a } J Z O U) W U) Q a a Z O U) U) U Q r EA N m m N 10 O LO O N O m m M r" m m co m l0 m m 1() m O 10 m N m m m m r- O N CO O r� m O tf1 N m O ti 1(J O O r` m C m 10 m ti m m m Cl) � m m M r m C (H M m m m O O O _ � N m (p = U 3 N V m r` n N N Cl) m C m M V O M Cl) N N rn U Q prf w (n Cl) ' V m m O O T O N O M O N (( V M m 7 X Cl) Cl) O N N 10 m O C .0 04 cli I C 7 Cl) 7 LL Z, N 6- m N m m m m m m O m _ N 'U 111 O LO 1n N V m r m O- r N N M N m a N O O m r- m m m Mi J p m m '7 m V r n Cl) 1(1 O m m V 10 m - (� m V - V N EA m m m n CO N N 1n O Y N V M r- m ': 1n ' N O m m N m 1n m a m O r- N m Cl) m O U O r m O V V n m V 10 to C O V V 0 m - m O m m C C a) (e m co N m n 111 r O � (31 m m L O M m m N CO EE; E C m 111 N m Cl) O U m N r N m 111 C w � r ^ N Y O N m co m m m 5 3 m m V m m m m m C m m 1n m m m m 3 N 2 'O V m Cl) N N M M t d M v (n Cl) M n N m m C to En M V N m O r.- a) m N N � Cl) 3 00 n v_ m U a) N r m 1D m N Cl) O N E Cl! co ck m 1n m 1l1 1p O m m V V Cl) C CO J •� ' N (» m u7 n m m O m m h °7 m m v 10 m v 1n rl� r- 3 O U m N V f` O N M m r-- j11 m N N m O M 111 (o r_ N N m m Cl) m to v C� �APEA _ WC/] w EA m CO N m N N_ N �1 N m O m 1[) m Cl) I- m 1� Ut N O W r- m O m M � M v m O m V _ of C EA m m O N N f- 4] f� •� �.� �` a) f� M rn O 1n N M m V] C m O Cl) M O m O m M M M N O m Vm �H L 3 M � O to m 1n N f� (d N a) r- m V' 16 N g N Cl) N �m to i��..�l cd C m L O M t` O C (o Cl! D�1 C A 3 a m r r` m m m i 3 r- m m N m V 1n m rl- 111 m (l1 r� V m m ry m N V m M -7 -' O`y--1 - m m M Cl) Cl) 1A 1l W V -O (ri M m m m C 0) m m m O L J O O V (D m m m m m m •^j d ^l N V m m t�t N O o C- U ca a N d N M r d o o m R Od �1 lT m m N O O C E O C C T T E m to T C) ca cc w lug m o_ c m (n a `m C (6 m a) R a N y a a1 Y d o h °z t: E a 'a � - a E (°1i o U o (mi o° �I E H r U o0 Q J m Q a0 Q J ca Z '0 m 01 (a a } J Z O U) W U) Q a a Z O U) U) U Q The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2012 11. Accumulated surplus The City's accumulated surplus is comprised of the following: 12. Pension abreements The Cit makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS), which is a mu - employer plan, on behalf of the members of its staff. The plan is a defined benefit plan which spe ifies the amount of the retirement benefit to be received by the employees based on the length of spervice and rates of pay. ntributions on account of current service for 2012 were $3,122,703 (2011 - $2,561,177). Page 19 FOR DISCUSSION PURPOSES ONLY 012 7011 Capital fund 8,6 0,062,439 Operating fund 125,170 125,092 Equity in Veridian Corporation 72,835,384 70,585,144 Tangible capital assets 192,638,717 187,940,852 Post employment benefits liability (3,473,6 ) (3,039,600) Internal loans (3,113 45) (806,848) Net long -term liabilities (17,77 ,020) (19,131,687) WSIB benefit liabilities 07,759) (826,859) Reserves set aside for special purposes by Council Working capital 400,000 400,000 Self insurance 962,707 962,707 Replacement of capital equipment 1,426,012 852,792 Contingencies 1,514,339 1,447,278 Rate stabilization 15,793,551 16,310,644 City's share for development charge 3,165,288 4,370,874 Continuing studies D 720,472 582,055 Vehicle replacement 197,215 93,722 Easement settlement 17,595 17,595 Eastern branch 180,000 155,000 Move Ontario 40,883 97,483 Capital asset managemen - 240,000 Economic stabilization 830,000 830,000 Land Purchase 99,403 194,403 Seaton Developme R ew 1,905,948 2,133,752 Financial System, 314,647 175,000 Senior Centre 75,000 - Accessibility I itiatives 13,713 - Reserve fund set aside for spe al purpose by Council Recreati programs and fa ilities 151,468 148,547 Acquis' on of tangible ca ' al assets 1,477,697 1,451,430 Squ h c urts 2,088 - W B 2,532,549 2,374,028 imal ter 228,882 196,370 Men's slow h 141,652 138,985 Operations Ce re 419,558 412,365 281,586,006 278,493,563 12. Pension abreements The Cit makes contributions to the Ontario Municipal Employees Retirement Fund (OMERS), which is a mu - employer plan, on behalf of the members of its staff. The plan is a defined benefit plan which spe ifies the amount of the retirement benefit to be received by the employees based on the length of spervice and rates of pay. ntributions on account of current service for 2012 were $3,122,703 (2011 - $2,561,177). Page 19 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2012 13. Trust Funds Trust funds administered by the City amounting to $325,969 (2011 - $318,169) hay not been inclu in the Consolidated Statement of Financial Position nor have their operations be included in the Consolidated Statement of Operations. 14. Related party transactions Veridian Corporation The City of Pickering receives electricity and services from Veridian corporation (Note Ax, a corporation in which the City is a principal shareholder. / 7 Transactions Revenues Interest on promissory notes Property taxes levied Expenses Electrical energy and services Balances Accounts payable and accrued liabilities Promissory notes receivable D 15. Guarantees In the normal course of business, a City enters int agreements primary guarantees are as follo s: (i) The City has provided i emnities under I se agreements for the use of various facilities or land. Under the terms of th a agreements th City agrees to indemnify the counterparties for various items including, but of i * ed to, all li ilities, loss, suits, and damages arising during, on or after the term of the ag a nt. maxi um amount of any potential future payment cannot be reasonably esti al 1. 2 2011 /1,426,852 1,426,852 48,329 46,785 1,986,034 1,788,931 369,049 371,799 25,069,000 25,069,000 which contain guarantees. The City's (ii) The City ind nifies all emp1by es and elected officials including Library employees and board members f various items in ding, but not limited to, all costs to settle suits or actions due to associate with the City, s ject to certain restrictions. The City has purchased liability insurance to mite to the cost of any otential future suits or actions. The term of the indemnification is not expli ' ly defined, but is ' ited to the period over which the indemnified party served as an em oyee or elected o icial of the City. The maximum amount of any potential future payment c n�eeasonab estimated. /aximum ' ha nt ed into agreements that may include indemnitie s in favour of third parties, such urch a sale agreements, confidentiality agreements, engagement letters with advisors consulta s, outsourcing agreements, leasing contracts, information technology agreements service greements. These indemnification agreements may require the City to compensate nterp ies for losses incurred by the counterparties as a result of breaches in representation re lations or as a result of litigation claims or statutory sanctions that may be suffered by the nt rparty as a consequence of the transaction. The terms of these indemnities are not explicitly ed and the maximum amount of any potential reimbursement cannot be reasonably estimated. re of these indemnification agreements prevents the City from making a reasonable estimate of mum exposure due to the difficulties in assessing the amount of liability which stems from the tability of future events and the unlimited coverage offered to counterparties. Historically, the not made any significant payments under such or similar indemnification agreements and therefore no amount has been accrued in the balance sheet with respect to these agreements. Page 20 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2012 16. Contingent liabilities Litigation The City has been named as a defendant in certain legal actions in which dam es have been so ht. The outcome of these actions is not determinable as at the date of reporting d accordingly, no provision has been made in these financial statements for any liabilities whi result. 17. Budget figures The 2012 Budget adopted by Council on February 21, 2012 was not repared on a bas' consistent with that used to report actual results. The budget was prepared on a m dified accrual ba ' while Public Sector Accounting Standards require a full accrual basis of ac co ting. The budget gures treated all tangible capital asset acquisitions as expenditures and did not ' clude amortizatio expense on tangible capital assets. As a result, the budget figures presented in th Statements of O rations and Change in Net Financial Assets represent the budget adopted by Cou cil pp February 21, 2012 with adjustments as follows: 2012 2012 Council Non TCA Budget approv�d expenditure presented in bu et from cap i I Amortization statements Revenue 13,9 ,850 405,000 Taxation 3,01 - - 53,011,670 Capital ,3 - - 20,305,651 Other - - 14,630,553 - 87,947,874 - - 87,947,874 Expenditures General go/seices 13,9 ,850 405,000 547,127 14,933,977 Protection d erty 20 02,949 - 756,130 21,359,079 Transportaes ,676,807 - 3,823,918 11,500,725 Environmees 1,695,656 - 2,142,929 3,838,585 Social and vices 590499 - - 590,499 Recreationtural servic 20,632,369 910,000 2,464,399 24,006,768 Plannin a ment 3,372,320 - 3,372,320 68,552,450 1,315,000 9,734,503 79,601 953 Annual urplus (deficit) 19,395,424 (1,315,000) (9,734,503) 8,345,921 Capit a res (31,409,625) 1,315,000 - (30,094,625) Tra sfer m r ery and eserve fu 5,706,931 ividend from Ver ian Corporation 1,927,000 Principal repay ent of debt (3,214,730) Debt proceed 7,470,000 fund surplus Page 21 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Notes to the consolidated financial statements December 31, 2012 18. Segmented information The City of Pickering is a diversified municipal government that pro/e/ a of services to residents. Distinguishable functional segments have been separate segmented information. The nature of the segments and the activities they encllows: General Government This item relates to revenues and expenses of the City itself and caribute to a specific segment. Protection to Persons and Property Protection includes fire services, animal control, bylaw services, ilding inspection nd enforcement of the building code to ensure the safety and protection of all citiz s and their prop y. Public Works Services Public works includes construction and maintenance of sidewalk repairs, street lighting, maintenance of the sto Social and Family Services Social services for assistance or services for sen/rs Recreation and Culture Services Recreation and cultural services include re eatic parks, operation of the City's museum an libran Planning and Development 7 Planning and development provide a number of property development plans. Segmented information has b n provided in the n programs services. i including snow removal, environmental services. intenance and rental of facilities and including municipal planning and review of all lowing pages. FOR DISCUSSION PURPOSES ONLY Page 22 NI O N Q � CIS 0 �V U .a CD 40 c Q 0 -z� o N •O '� .0 En � w O O N c U � � O 0-0 as r 0) R O to C O I ui rWt:PWL0000IN O O r W O 17 O 1- O O w O r N W W ti w w M ti ti O O Cl) ti O O d' ti 00 N V- M r M ti r 00 V N O w r r MIco R tf! 00 O B I ' O I CD 0) ti t- r N t0 O tD O � M N N E N 00 t0 N ti N N L O ti d' M M h 0 t7 M N O r r Q1 0) O CL C r O t0 M QI ` V tp U N t- M O C M co -0 0) I- O O tp t) M lqt M CD O R w � N o V 3 N O to .a �. N ' �M O Y N R 0) E O 00 f` M CL O L C) /> r ti 00 O N O N t0 ti 00 ti O M N O w N h [t 0) to °- o .. 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Statements of financial activities and fund balances Statements of financial position ............................... Notes to the financial statements ............................. 11:: ............. 7k ... 7" FOR DISCUSSION PURPOSES ONLY ../ ...... 1 -2 3 4 5 Independent Auditor's Report To the Members of Council, Inhabitants and Ratepayers of The Corporation of the City of Pickering Deloitte LLP 5140 Yonge treet Suite 1700 Toronto 91 M2N 61_7 Canad Tel/416-601-6150 F :416 -601 -6151 .deloitte.ca A� We have audited the accompanying financial statements of e ration the City of Pickering Trust Funds, which comprise the statements of financial positio as at Dec er, 1, 2012, December 31, 2011 and January 1, 2011, the statements of financial activiti sand fund balan for the years ended December 31, 2012 and December 31, 2011, and a s mary of signifi nt accounting policies and other explanatory information. Management's Responsibility for the Management is responsible for the pre accordance with Canadian accounting control as management determines is t free from material misstatement, wht Auditor's Responsibility Our responsibility is to conducted our audits in Those standards require obtain reasonable assrfr, An audi/se p financiats of the ri those risei presenta tances, but i control. An )leness of a, inan al Statements on and pres tation of these financial statements in adards for n fo -profit organizations, and for such internal ;ssary to enabl the preparation of financial statements that are due to fraud br error. 6ss �o o hese financial statements based on our audits. We rdanc th C adian accounting standards for not - for -profit organizations. V e comp ith ethical requirements and plan and perform the audits to about wheel the financial statements are free from material misstatement. rforming proc dures to obtain evidence about the amounts and disclosures in the The proced ,)Ares selected depend on the auditor's judgment, including the assessment 1 misstat ment of the financial statements, whether due to fraud or error. In making he it considers internal control relevant to the entity's preparation and fair ci statements in order to design audit procedures that are appropriate in the f r the purpose of expressing an opinion on the effectiveness of the entity's it also includes evaluating the appropriateness of accounting policies used and the ,ounting estimates made by management, as well as evaluating the overall of thg financial statements. We believe t t the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. FOR DISCUSSION PURPOSES ONLY Opinion In our opinion, the financial statements present fairly, in all material respects, the financial po ' ion of The Corporation of the City of Pickering Trust Funds as at December 31, 2012, December 3X, 2011 and January 1, 2011, and the results of its operations for the years ended December 31, 2012 add December 31, 2011 in accordance with Canadian accounting standards for not - for -profs organizations. Chartered Professional Accountants, Chartered Accountants Licensed Public Accountants June 10, 2013 1� Q �t FOR DISCUSSION PURPOSES ONLY Page 2 The Corporation of the City of Pickering Trust Funds Statements of financial activities and fund balance years ended December 31, 2012 and December 31, 2011 20,12 2011 (Note 1 Revenues Interest „ 7,800 /9,726 Net revenues 00 9,726 Fund balance, beginning of year 318, 69 308,443 Fund balance. end of vear 325.969 318.169 1z:7 Q The accompanying notes are an integral part of these financial statements. Page 3 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Trust Funds Statements of financial position as at December 31, 2012, December 31, 2011 and Janaury 1, 2011 The accompanying notes are an integral part of these financial statements. Page 4 FOR DISCUSSION PURPOSES ONLY December 31, December 31, January 1, 2012 201 2011 Not 1 Note Assets /�4&1 /277,351 Cash and investments 319,815 5 Interest receivable 6 154 92 325,969 318,169 308,443 Trust Fund position 325,9 318.16 308.443 The accompanying notes are an integral part of these financial statements. Page 4 FOR DISCUSSION PURPOSES ONLY The Corporation of the City of Pickering Trust Funds Notes to the financial statements December 31, 2012 and December 31, 2011 1. 2. 3. Adoption of a new accounting framework During the year ended December 31, 2012, the Trust Funds adopt/hene w ccounting standa s for not - for - profit organizations (the "new standards ") issued by the Caitu of Chartered Accountants ( "CICA "). In accordance with the CICA Handbook Pa-ti doption, C ection 1501 "), the date of transition to the new standards is January 1, 20e rus nds prepared and presented an opening balance sheet at the date of transition t standard . T is opening balance sheet is the starting point for the Trust Fund's accounting new stand ds. In its opening balance sheet, under the recommendations of Section 15 ust Fund . (a) recognized all assets and liabilities whose recognition is ;andards q Ired by the new s ndards; (b) did not recognize items as assets or liabilities if the new do not pg►`/mlt such recognition; (c) reclassified items that it recognized previously as o ty asset, I' bility or component of net assets, but are recognized as a different asset, abili compo nt of equity under the new standards; and (d) applied the new standards measuring all recognized assets and liabilities In accordance with the requirement of Section 1/501, the accountin /gf policies set out in Note 1 have been consistently applied to all years presented an there were no ad� stments resulting from the adoption of the new standards. Accounting policies The financial statements of The Corp ration oft City f Pickering Trust Funds are the representations of management prepared in accor nce with Can i generally accepted accounting principles using accounting standards for Not -for- rofit Organization . Significant accounting policiesAdopted include Basis of accounting Interest revenue is recor a arned. Expenses are report on b sis of accounting which recognizes expenses as they are incurred and meas able as a It o the receipt of goods or services and the creation of a legal obligation to pay. Investments Investment are recorded at a ortized cost. The cost of investments plus accrued interest approximates their fair v lue. Doro y r tate Th City o ' k ng dministers a trust fund for the Dorothy Card Estate for the care and upkeep of the stitute elder fund balance is comprised of investments and accumulated interest amounting to $325,969 (2011 - 318,169) Statement o cash flows A stateme of cash flows has not been presented as the information is readily determinable from the financial tatements presented. FOR DISCUSSION PURPOSES ONLY Page 5 FOR DISCUSSION PURPOSES ONLY City of Pickering Public Library Board December 31, 2012 Table of contents Independent Auditor's Report ........................... Statement of financial position .......................... Statement of operations ..... ............................... Statement of change in net debt ....................... Statement of cash flows ..... ............................... Notes to the financial statements ...................... 11:: Q FOR DISCUSSION PURPOSES ONLY Independent Auditor's Report To the Members of The City of Pickering Public Library Board, Members of Council, Inhabitants and Ratepayers of the City of Deloitte LLP 5140 Yonge treet Suite 1700 Toronto M2N 61-7 Canad A�� 416- 601 -6150 416 - 601 -6151 .deloitte.ca We have audited the accompanying financial statements of e Picker' g Public Library Board, which comprise the statement of financial position as at D ember 3 Ol ,and the statements of operations, change in net debt and cash flows for the ye r then ended, an a summary of significant accounting policies and other explanatory informatio . Management's Responsibility for the Management is responsible for the preparatigii an accordance with Canadian public sector ac ounting management determines is necessary to able the pi material misstatement, whether due to and or error. Auditor's Responsibility Aion of these financial statements in and for such internal control as of financial statements that are free from Our responsibility is to /the a inion on t se financial statements based on our audit. We conducted our audit in w ana 'an generally accepted auditing standards. Those standards require that we comply ic quire ents and plan and perform the audit to obtain reasonable assurance about whethe ancia a ments are free from material misstatement. An audit involves p rforming proced res to obtain evidence about the amounts and disclosures in the financial stateme s. The procedur selected depend on the auditor's judgment, including the assessment of the risks of aterial misstate nt of the financial statements, whether due to fraud or error. In making those risk ass ss ka he aud' or considers internal control relevant to the entity's preparation and fair presentatio of ial atements in order to design audit procedures that are appropriate in the circumst ces, b r e purpose of expressing an opinion on the effectiveness of the entity's intern control. A also includes e valuating the appropriateness of accounting policies used and the real ableness of acc nting estimates made by management, as well as evaluating the overall Pr entation of the f ancial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit oni w6n. FOR DISCUSSION PURPOSES ONLY Opinion In our opinion, the financial statements present fairly, in all material respects, the financial p City of Pickering Public Library Board as at December 31, 2012 and the results of its operat' in its net debt and its cash flows for the year then ended in accordance with Canadian pub 'c accounting standards. Chartered Professional Accountants, Chartered Accountants Licensed Public Accountants June 10, 2013 (r FOR DISCUSSION PURPOSES ONLY A-� os' ion of the ns, changes sector Page 2 City of Pickering Public Library Board Statement of financial position as at December 31, 2012 2012 $ Financial assets 2011 Cash 2 50 7875 0 Accounts receivable 1 ,812 Due from the Government of Canada 18,716 1,134 Due from City of Pickering 031 ;40,224 09 154,493 Liabilities Accounts payable and accrued liabilities 313,869 211,233 Post-employment benefits liability Note 2 194:2 150,800 508 69 362,033 Non - financial assets Tangible capital assets (Note 4) /1,561,060 97,376 1,341,173 Prepaid expense 56,740 1,658,436 1 397,913 Accumulated surplus (Note 5) 1.403.176 1.190.373 The accompanying notes are an integral part of these financial statements. Page 3 FOR DISCUSSION PURPOSES ONLY City of Pickering Public Library Board Statement of operations year ended December 31, 2012 Expenses 2012 2011 Operating Budget Salaries Note 6 Salaries and wages $ 3,225 00 $ Revenue 81 1 7 ,478 721,340 City of Pickering grants 5,385,270 /,,610 4,89 689 Federal grants 8,894 19,057 Province of Ontario grants 135,505 162,781 Fines and other recei is 196 117 182,174 187,463 Total revenue 5,725,786 5,569,060 5,260,990 Expenses Operating Salaries Salaries and wages 3,194, 9 3,225 00 3,133,517 Fringe benefits 81 1 7 ,478 721,340 4 1 73 4 13,578 3,854,857 Material, supplies and utilities Books 92,000 102,853 111,241 Utilities 166,350 182,174 172,851 Other supplies 439,878 61,250 299,350 324,905 345,342 Services D Repairs and maintenance 8,590 248,979 255,786 Insurance 33,783 40,933 46,268 Travel 4,000 5,166 4,524 Consulting and professional 26,840 39,744 54,878 Advertising 17,500 17,075 19,909 Conference - 518 6,111 Postage 4,500 3,828 4,152 Telephone O 67,087 71,341 69,228 Seminars and educati n 16,000 17,756 19,747 Software /hardware aintenance 89,626 68,750 60,671 Vehicle repairs an maintenance 5,130 3,474 2,706 Minor capital pu hases 71,500 86,772 71,503 Miscellaneou 21,800 18,867 26,456 676 356 623 203 641 939 Capit/r�el Am xpe a 392,475 376,618 644,709 Los o - 17 953 - T al operatinq ex a ses 5,379,911 5 356 257 5,486,847 nnual surplus (/e�j ) 345,875 212,803 (225,857) Accumulated sue innin of year 1,190,373 1 190 373 1,416,230 Accumulated ur lus end of year 1,536,248 1 403 176 1,190,373 The accompanying notes are an integral part of these financial statements. FOR DISCUSSION PURPOSES ONLY Page 4 City of Pickering Public Library Board Statement of change in net debt year ended December 31, 2012 2012 Budget Note 6 2011 Annual surplus (deficit) 345.875 212803 (225,,857 Acquisition of tangible capital assets (788,350) 50 F4) 50,152) Amortization of tangible capital assets 392,475 3 Z644,709 Loss on disposal of tangible capital assets - 17,95 - (395,875) (256,203) 194,557 Change in prepaid expense (4,320 33,256 Change in net debt (50,t010) (47,7 ) (64,556) Net debt, beqinninq of year (207 0) (207 40) (142,984) 'Q7, The accompanying notes are an integral part of these financial statements. FOR DISCUSSION PURPOSES ONLY Page 5 City of Pickering Public Library Board Statement of cash flows year ended December 31, 2012 2012 2011 Operating transactions Annual surplus (deficit) 212 03 (225,8 7) Non cash item Amortization of tangible capital assets 76,618 6 4,709 Loss on disposal of tangible capital assets 953 - 74 418.852 Change in non -cash operating items (Increase) in accounts receivable (295) (Increase) decrease in due from Government of Canada 10,008 Decrease in due from City of Pickering /(4,320) 112,663 Increase (decrease) in accounts payable and accrued liabilities (89,120) Increase in post - employment benefit liability 31,300 Increase in prepaid expense 33,256 43,390 31,300 650,764 450,152 Capital transactions Acquisition of tangible assets (650,774) 450,152 Net decrease in cash (10) - Cash beginning of year 2,260 2,260 Cash. end of vear 2.2sn 2 grin The accompanying notes are an integral part of these financial statements. Page 6 FOR DISCUSSION PURPOSES ONLY City of Pickering Public Library Board Notes to the financial statements December 31, 2012 1. Significant accounting policies The financial statements of the City of Pickering Public Library Board (the "Library oard ") are the representations of management prepared in accordance with Canadian publics ctor accounting standards established by the Public Sector Accounting Board ( "PSAB ") of the anadian Institute Chartered Accountants. Significant accounting policies adopted by the Library Board are as follow Basis of accounting (a) Accrual basis of accounting Revenues and expenses are reported on the accrual basis accounting. The basis of accounting recognizes revenues as they are earned and le; expen s are recognized, as they are incurred and measurable as a result of the rece' t of goods ands ices and the creation of a legal obligation to pay. (b) Non - financial assets (i) Tangible capital assets 11�t Tangible capital assets are recorded at c st less accumulat d amortization. Cost includes all amounts that are directly attributable to acquisition, devel ment or betterment of the asset. The cost of the tangible capital asset ' amortized on a raight -line basis over the estimated useful life as follows: Machinery & equipment Ito 25 ye s Information technology hardw e y ars Library collection material to 7 ears Furniture and fixtures o years One -half of the aZincluding ortization is cha ed in the year of acquisition and in the year of disposal. Other major ass the Libr buildings are owned by the City and are not reflected in these financial s . (ii) Contribution /c na n Tangible c vital asse the date f receipt, and (iii) Intan ' le assets Int gible assets are (c) Pos em to ment bene its (d) I as contributions or donations are recorded at their fair value at value is also recorded as revenue. recognized as assets in the financial statements. The s alue o the cost of providing employees with future benefits programs is recognized as mp es a rn t se entitlements through service. Any actuarial gains or losses are amortized on a straigh ' b is over the average remaining service period (ARSP) of employees. The actuary estimated the RSP to be 14 years. The pre aration of financial statements in conformity with Canadian public sector accounting stand ds requires management to make estimates and assumptions that affect the reported amo nt of assets, liabilities and the disclosure of contingent assets and liabilities at the date of the fin ncial statements and the reported amounts of revenues and expenses during the period. Actual r sults could differ from those estimates. Balances which require significant estimates include tangible capital assets which are based on estimated useful lives and employee future benefits. Page 7 FOR DISCUSSION PURPOSES ONLY City of Pickering Public Library Board Notes to the financial statements December 315 2012 2. Post employment benefits liability The Library Board makes available to qualifying employees who retire before the a of /Th' opportunity to continue their coverage for benefits such as post- retirement exten ed healfits. Coverage ceases at the age of 65. The Library Board also provides full time a permane employees a sick time entitlement and any unused entitlement is accumulat y r to yeaccumulated entitlement is not vested and therefore is forfe ited at the time f r ' ment on. The post - employment benefits obligation at December 31, 2012 and the han es a aefit obligation for the 2012 fiscal year was determined by actuarial valuatio prepared as J 011. Information about the Library Board's post employment benefits liabifities is as follows D $ $ Accrued post - employment benefi/ig� tio n 388,600 361,800 Unamortized actuarial losses (194,400) (211,000) Post - employment benefits liabi' y 194,200 150,800 The main actuarial assumpti s employed in th actuarial valuations are as follows: (a) Discount rate The present value s ber 3 , 2012 of the future benefits was determined using a discount rate of 3.75% (2 11 — o). (b) Dental cost The dents cost trend rate w 4.0% increase per annum. (c) Health osts Heal costs were ass ed to increase at 7.8% in 2012 and decrease by 0.2% increments per year to n yJtir�.�te rate of % per year in 2026 and thereafter. 3. Pe sio/a"ent nt he Lib akes contributions to the Ontario Municipal Employees Retirement Fund ( OMERS), which iployer plan, on behalf of eligible members of its staff. The Plan is a defined benefit plan th the amount of the retirement benefit to be received by the employees based on the length and rates of pay. Contribhe amount of $241,707 (2011 - $206,947) were paid to OMERS on behalf of its membe he year. Page 8 FOR DISCUSSION PURPOSES ONLY 012 2011 Post - employment benefits liability, beginning of year 150,800 119,500 .Current service costs 32,000 23,300 Amortization of actuarial losses 16,600 11,100 Interest expense 14,400 15,300 Benefits paid during the year (19,600) (18,400' Post - employment benefits liability, end of yea 194,200 150,800 2012 2011 D $ $ Accrued post - employment benefi/ig� tio n 388,600 361,800 Unamortized actuarial losses (194,400) (211,000) Post - employment benefits liabi' y 194,200 150,800 The main actuarial assumpti s employed in th actuarial valuations are as follows: (a) Discount rate The present value s ber 3 , 2012 of the future benefits was determined using a discount rate of 3.75% (2 11 — o). (b) Dental cost The dents cost trend rate w 4.0% increase per annum. (c) Health osts Heal costs were ass ed to increase at 7.8% in 2012 and decrease by 0.2% increments per year to n yJtir�.�te rate of % per year in 2026 and thereafter. 3. Pe sio/a"ent nt he Lib akes contributions to the Ontario Municipal Employees Retirement Fund ( OMERS), which iployer plan, on behalf of eligible members of its staff. The Plan is a defined benefit plan th the amount of the retirement benefit to be received by the employees based on the length and rates of pay. Contribhe amount of $241,707 (2011 - $206,947) were paid to OMERS on behalf of its membe he year. Page 8 FOR DISCUSSION PURPOSES ONLY City of Pickering Public Library Board Notes to the financial statements December 31, 2012 4. Tangible capital assets Machinery Information Library Furniture Assets and technology collection an under eaumment hardware materials fixtures Construction 2012 Cost Machinery Info mation Libr </ - Assets Balance beginning of year 9,992 379,495 1,771,949 292,082 - 2,453,518 Additions during the year - 55,765 442,027 25,462 1 7,520 650,774 Disposals during the year - 272,254 173,271 13,024 - 458,549 Balance, end of year 9,992 163,006 2,040,7 304,520 127,520 2,645,743 Balance beginning of year Accumulated amortization 379,4 5 5,810,056 292,082 - 6,491,625 Balance, beginning of year 2,498 355,015 6 8,329 - 1,112,345 Amortization 999 16,192 5 , 73 - 376,618 Accumulated amortization 4,488,259 Balance, end of year 9,992 75;,60 1,771,949 on disposals - 261,724 17 1 1 - 440,596 Balance, end of year 3,497 109,48 837,63 97,756 - 1,048,367 Net book value 6.495 53. 5,23 1.203.074 206.764 127.520 1.597.376 /\ J FOR DISCUSSION PURPOSES ONLY Page 9 Machinery Info mation Libr Furniture Assets and t chnology colle ion and under equipment h rdware ma rials fixtures construction 2011 Cost Balance beginning of year 992 379,4 5 5,810,056 292,082 - 6,491,625 Additions during the year - - 450,152 - - 450,152 Disposals during the year - - 4,488,259 - - 4,488,259 Balance, end of year 9,992 37 ,495 1,771,949 292,082 - 2,453,518 Accumulated amortizatio Balance, beginning o ye 1,499 325,856 4,537,879 90,661 - 4,955,895 Amortization O 9 29,159 608,709 5,842 - 644,709 Accumulated am ization on disposals - - 4,488,259 - - 4,488,259 Balance, end f year 498 355,015 658,329 96,503 - 1,112,345 Net book value/ _7,494 24,480 1,113,620 195,579 - 1,341,173 /\ J FOR DISCUSSION PURPOSES ONLY Page 9 City of Pickering Public Library Board Notes to the financial statements December 31, 2012 5. Accumulated surplus Accumulated surplus consist of the following: 2012 011 Invested in capital assets 9 6 1, 341,173 Post employment benefits liability (194,2 ) (150,800) 1.403.176 1,190.373 6. Budget figures The 2012 budget was not prepared on a basis consistent wi th/de rep actual results. The budget was prepared on a modified accrual basis while pu is un " g standards require a full accrual basis of accounting. The budget figures treated to l set acquisitions as expenditures and did not include amortization expens on tangi assets. The following provides a reconciliation from the approved budget to the bud et numbered in the financial statements. 2012 TCA adju tment 2012 budget Council approved for City expepresented in budget ow ed assets fro Amortization statements 7 Revenue City of Pickering 5,385,27 D - - 5,385,270 Federal and provincial grants 1 ,399 - - - 144,399 Other 6,117 - - - 196,117 725,786 - - - 5,725,786 Expenditures Salaries and benefits 11,730 - - - 4,011,730 Material, supplies and utilities 99, 0 - - - 299,350 Services 3 - 50,000 - 676,356 Amortization - - - 392,475 392,475 4,9#,436 - 50,000 392,475 5,379,911 Annual /s— 788,350 - (50,000) (392,475) 345,875 Capital ures/ additi (788,350) - 50,000 - (738,350) 'Certain comparati a figures for the year ended December 31, 2011 have been reclassified to conform to the current year' presentation. FOR DISCUSSION PURPOSES ONLY Page 10 From: Richard W. Holborn Director, Engineering & Public Works Report to Executive Committee Report Number: ENG 09 -13 Date: June 10, 2013 Subject: Tender for Asphalt Resurfacing on Rosebank Road - Tender No. T -10 -2013 - File: A- 1440 Recommendation: 1. That Report ENG 09 -13 of the Director, Engineering & Public Works regarding Tender for Asphalt Resurfacing on Rosebank Road be received; 2. That Tender No. T -10 -2013 as submitted by Coco Paving Inc. for Asphalt Resurfacing on Rosebank Road in the total tendered amount of $141,025.79 (HST included) be accepted; 3. That the total gross project cost of $159,310.00 (HST included), including the tender amount and other associated costs and the total net project cost of $143,464.00 (net of HST rebate) be approved; 4.. That Council authorizes the (Acting) Division Head, Finance & Treasurer to finance the project in the amount of $143,464.00 from Other Revenue York Region (South East Collector Enhancements) be approved; and 5. That the appropriate City of Pickering officials be authorized to take necessary action to give effect thereto. Executive Summary: As part of the 2013 Roads Capital Budget, Rosebank Road Resurfacing from the CP Rail line to the Hydro Corridor (south of Third Concession Road) was approved as a construction project. Tender No. T -10 -2013 was issued on Thursday, March 28, 2013 and closed on Wednesday, April 17, 2013 with nine bidders responding. The low bid submitted by Coco Paving Inc. is recommended for approval. The total gross project cost is estimated at $159,310.00 (HST included) and the total net project cost is estimated at $143,464.00 (net of HST rebate). Report ENG 09 -13 Subject: Tender for Asphalt Resurfacing on Rosebank Road Tender No. T -10 -2013 Financial Implications: 1. Tender Amount June 10, 2013 Page 2 Tender No. T -10 -2013 $124,801.58 HST (13 %) 16.224.21 Total $141,025.79 z. Estimated Project costing Summary Tender No. T -10 -2013 for Asphalt Resurfacing on Rosebank Road $124,802.00 Associated Costs Miscellaneous Costs 1,200.00 Materials Testing 2,500.00 Construction Contingency (10 %) 12,480.00 Total 140,982.00 HST (13 %) 18,328.00 Total Gross Project Cost $159,310.00 HST Rebate (11.24 %) (15,846.00) Total Net Project Cost 3. Approved Source of Funds Z013Roads capital Budget Account 5320.1315.6250 TOTAL Funding Source Other Revenue York Region (SEC) Available Budget $450,000.00 $450,000.00 Required Budget $143.464.00 Net Project Costs under (over) Approved Funds $306,536.00 This project is substantially below the budget estimate that was provided to the City by York Region's consultant. As per the Funding Agreement for Community Enhancements in the City of Pickering with York Region, in the event of surplus moneys being available, they may be applied to the funding of amount of any one or more Enhancement Projects where the City provides prior notice to and consultation with the Region. Discussion: As part of the 2013 Roads Capital Budget, Rosebank Road Resurfacing from the CP Rail line to the Hydro Corridor (south of Third Concession Road) was approved as a construction project. In a Report to the Executive Committee (CAO -12 -2011) Enhancement Projects in the City of Pickering for the South East Collector Trunk Sewer, Rosebank Road Resurfacing was identified as a project. This Report ENG 09 -13 June 10, 2013 Subject: Tender for Asphalt Resurfacing on Rosebank Road Tender No. T -10 -2013 Page 3 project is being funded by York Region under the Funding Agreement for Community Enhancements in the City of Pickering which was executed on April 27, 2012. Tender No. T -10 -2013 was issued on Thursday, March 28, 2013 and closed on Wednesday, April 17, 2013 with nine bidders responding. The low bid submitted by Coco Paving Inc. is recommended for approval. References for Coco Paving Inc. have been reviewed and deemed acceptable by the Manager, Capital Projects & Infrastructure. The Health & Safety Policy, current WSIB Council Amendment to Draft#7 (CAD7), Certificate of Clearance issued by Workplace Safety & Insurance Board as submitted by Coco Paving Inc., have been reviewed by the Coordinator, Health & Safety and are deemed acceptable. The Certificate of Insurance has been reviewed by the (Acting) Manager, Budgets & Internal Audit and is deemed acceptable. In conjunction with staff's review of the contractor's references available on this project, the tender is deemed acceptable. Upon careful examination of all tenders and relevant documents received, the Engineering & Public Works Department recommends the acceptance of the low bid submitted by Coco Paving Inc. for Tender No. T -10 -2013 in the amount of $141,025.79 (HST included) and that the total net project cost of $143,464.00 (net of HST rebate) be approved. Attachments: 1. Supply & Services Memorandum dated April 18, 2013 2. Location Map Prepared By: Capital Projects & I Ve—ra A. Felfemacher CSCMP, CPPO, CPPB, C.P.M., Manager, Supply & Services DS:ds cture CMM III Approved /Endorsed By: $ Fze,�a� RioAard Holbor , P. Eng. erector, Engineering & Public Works Stan Karwowski (Acting) Division Head Finance & Treasurer Report ENG 09 -13 Subject: Tender for Asphalt Resurfacing on Rosebank Road Tender No. T -10 -2013 Recommended for the consideration of Pickering Cit y Council „ 13, Z613 Tony Prevedel, P.Eng. Chief Administrative Officer June 10, 2013 Page 4 A TA('1,MENT# TO REPORT# P- L�- of 3 To: Richard Holborn Director, Engineering & Public Works From: Vera A. Felgemacher Manager, Supply & Services Copy: Manager, Capital Works & Infrastructure Subject: Tender No. T -10 -2013 Tender for Asphalt Resurfacing on Rosebank Road - File: F- 5400 -001 Memo April 18, 2013 APR ) d 2013 CITY OF PICKERINr, ENGINEERING Tenders have been received for the above project. An advertisement was placed in the Daily Commercial News and on the City's website inviting companies to download the tendering documents and drawings for the above mentioned tender. Ten (10) bidders 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 13.03 (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 13.03(w). Three (3) bids have been retained for review at this time. Copies of the tenders are attached for your review along with the summary of costs. SUMMARY Harmonized Sales Tax Included Bidder Total Tendered Amount After Calculation Check Coco Paving Inc. $141,025.79 $141,025.79 Miller Paving Ltd. $147,449.34 $147,449.34 IPAC Paving Ltd. $173,848.24 $173,848.24 Melrose Paving Co. Ltd. $174,779.36 $174,779.36 C. Valley Paving Ltd. $175,955.13 $175,955.13 Northland Paving Ltd. $183,495.05 $183,465.56 Bond Paving & Construction Inc. $186,852.28 $186,852.28 Ashland Paving Ltd. $197,058.33 $197,058.33 ATTACHMENT# TOREPORT #LM6�_Oy'13 S � Bidder Total Tendered Amount After Calculation Check Trison Contracting Inc. $199,585.12 $199,585.12 Automatic rejection — Bid bond for tendering deposit Four Seasons Site Development of insufficient amount. Reference: Purchasing Policy No. PUR 010, Procedure No. 23.02, Item 10(d), IB Item 11, 26, 27, and 28; TS Item 3. Pursuant to Information to Bidders Item 29, the following will be requested of the low bidder for your review during the evaluation stage of this tender call. Please advise when you wish us to proceed with this task. (a) . A copy of the.currently dated and signed Health and Safety Policy to be used on this project; (b) A copy of the current Workplace Injury Summary Report issued by Workplace Safety & Insurance Board (in lieu of the Workplace Injuy 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 or approved alternative form shall be completed by the bidder's agent, broker or insurer, (e) The City's Accessibility Regulations for Contracted Services form currently dated and signed; (f) list of Sub - Contractors in accordance with General Conditions Item 34; and (g) Waste Management Plan to be used on this project in accordance with Tendering Specifications Item 18. Please include the following items in your Report to Council: (a) if items (a) through (c) noted above, are acceptable to the Co- ordinator, Health & Safety; (b) if item (d) — Insurance — is acceptable to the (Acting) Manager, Budgets & Internal Audit; (c) any past work experience with the low bidder Coco Paving Inc. including work location; (d) without past work experience, if reference information is acceptable; (e) the appropriate account number(s) to which this work is to be charged; (f) the budget amount(s) assigned thereto; (g) Treasurer's confirmation of funding; (h) related departmental approvals; and (i) related comments specific to the project. Please do not disclose any information to enquiries except you can direct them to the City's website for the unofficial bid results as read out at the public tender opening. Bidders will be advised of the outcome in due course. If ou require further information, please feel free to contact me or a member of Supply & S ices. VAFIJ Attachments April 17, 2013 Tender No. T -10 -2013 Page 2 Tender for Asphalt Resurfacing on Rosebank Road �a w Y C d O w C O O C w N ca z a a L L Q� 0 n 'U ti N O N C a O N x 0 CL o- a N F- M O N i 4. Q a m w m V cu cu 0 M O N O H O Z a) C N F- ATTACFiMENT #— TOREPORT #11543 3 of 3_ CO 0 Co. k U N C R3 0 a 0 U N O N W U C c0 �O O O . U O L U ... O O ,C ca O U a a - (4 - - 64 64 64 69 64 64 64 64 613- 64 O' H C E of a \ \ i m O' Q C. ) 1 \ T L p. . ..0 tJ� � U � N D _ O E Q O El Z .. N _ > (D O L' -O C O J J O O O J U J > CO > U M n- c c c6 > O U N > (6 Q U O d d o cu m m o. o a U f- LL U Z CO 0 Co. k U N C R3 0 a 0 U O � Q U ti y C O co Eli 40- N O N U C c0 �O O U O L O O ,C ca O U a a O � Q U ti y C O co Eli 40- ATTACHMENT# -1- TOREPORT #ENG 6q -13 ---J_ of i Engineering & Public Works Department Attachment'for Tender T -10 -2013 Rosebank Road — Full Depth Asphalt Resurfacing Location Map — Rosebank Road Proposed Construction Includes: Rosebank Road — full depth asphalt resurfacing includes; • complete asphalt removal and partial granular removal • install granular padding as required with a new asphalt surface (double lifts) • Complete boulevard restoration to all areas affected by construction (fine grading and sodding where required) This project is funded by SEC enhancements z� Q� o� O HYDRO CORRIDOR GOK 56R NYOFtO GOB G G JNT Ryt J 3P � RP\o JRS �r SUBJEC AREA �P 0 Q yJ2 ��Pv V1 N �� yJ ,y 0 P GSA c�J L� G ��2GG Syd PN 2 ,, ? PePP G0GNPC �� JG4' W P E ro•K RO \ APT 0 W6 O �di N \P�PG��'NG GO P%pEI.INE.. O N N o G r0 R cTP Z AD R SoUPRE ROPO N w° Location Map — Rosebank Road Proposed Construction Includes: Rosebank Road — full depth asphalt resurfacing includes; • complete asphalt removal and partial granular removal • install granular padding as required with a new asphalt surface (double lifts) • Complete boulevard restoration to all areas affected by construction (fine grading and sodding where required) This project is funded by SEC enhancements From: Richard W. Holborn Director, Engineering & Public Works Report to Executive Committee Report Number: PW 03 -13 Date: June 10, 2013 Subject: Tender No. T -6 -2013 Reconstruction of Tennis Courts - David Farr Park and Claremont Park File: A -1440 Recommendation: That Report PW 03 -13 of the Director, Engineering & Public Works regarding Tender No. T -6 -2013 for Reconstruction of Tennis Courts - David Farr Park and Claremont Park be received; 2. That Tender No. T -6 -2013 submitted by Court Contractors Ltd. for Reconstruction of Tennis Courts - David Farr Park and Claremont Park in the amount of $224,343.70 (HST included) be accepted; 3. That the total gross project cost of $251,355.00 (HST included) including the tender amount and other associated costs and the total net project cost of $226,353.00 (net of HST rebate) be approved; 4 That Council authorize the (Acting) Division Head, Finance & Treasurer to finance the sum of $226.353.00 as approved in the 2011 and 2013 Capital Budgets from Parkland Reserve Fund; and 5 That the appropriate City of Pickering officials be authorized to take necessary action in order to give effect thereto; Executive Summary: As part of the 2011 Parks Capital Budget, Claremont Park Tennis Court Reconstruction was approved as a construction project in the amount of $150,000, and as part of the 2013 Parks Capital Budget, Glendale Tennis Court Reconstruction at David Farr Park was approved as a construction project in the amount of $120,000. Tender No. T -6 -2013 was issued on March 8, 2013 and closed on March 27, 2013 with one bidder responding. The bid by Court Contractors Ltd. is recommended for approval. The total gross project is estimated to be $251,355.00 and the estimated net project cost is $226,353.00 (net of HST rebate). Report PW 03 -13 June 10, 2013 Tender No. T -6 -2013 Reconstruction of Tennis Courts — David Farr Park and Claremont Park Page 2 Financial Implications: 4 Tnnrinr Ammint Tender No. T -6 -2013 $198,534.25 HST (13%) 25,809.45 Total $224,343.70 2. Estimated Project costing summary Tender No. T -6 -2013 — For Reconstruction of Tennis Courts Miscellaneous Costs (Advertising) Materials Testing Project Contingency Total HST (13 %) Total Gross Project Cost HST Rebate (11.24 %) Total Net Project Cost 3. Breakdown of Cost by ParKs $198,534.00 1,050.00 3,000.00 19.854.00 222,438.00 28,917.00 $251,355.00 (25,002.00) $226 5�3 3.00 4. Source of Funds Account Source of Funds Budget Required 5780.1110 Parkland Reserve Fund $122,143.00 $122,143.00 5780.1312 Parkland Reserve Fund 120,000.00 104,210.00 Total $242,143.00 $226,353.00 Net Project Costs (over) under Approved Funds $15,790.00 For funding purposes, both the 2011 and 2013 approved budgets will be combined. The maximum amount will be drawn from the 2011 approved project to fund Claremont Park Tennis Court Reconstruction for the amount of $90,743.00, and the balance will be combined with the 2013 approved budget to fund Glendale Park Tennis Court for a total amount of $135,610.00. Glendale Claremont Total Tender Amount $119,309.00 $79,225.00 $198,534.00 Associated Cost 2,025.00 2,025.00 4,050.00 Contingency 11,931.00 7,923.00 19,854.00 Total Cost 133,265.00 89,173.00 222,438.00 Net HST (1.76 %) 2,345.00 1,570.00 3,915.00 Total Net Project Cost to City $135,610.00 $90,743.00 4. Source of Funds Account Source of Funds Budget Required 5780.1110 Parkland Reserve Fund $122,143.00 $122,143.00 5780.1312 Parkland Reserve Fund 120,000.00 104,210.00 Total $242,143.00 $226,353.00 Net Project Costs (over) under Approved Funds $15,790.00 For funding purposes, both the 2011 and 2013 approved budgets will be combined. The maximum amount will be drawn from the 2011 approved project to fund Claremont Park Tennis Court Reconstruction for the amount of $90,743.00, and the balance will be combined with the 2013 approved budget to fund Glendale Park Tennis Court for a total amount of $135,610.00. Report PW 03 -13 June 10, 2013 Tender No. T -6 -2013 Reconstruction of Tennis Courts — David Farr Park and Claremont Park Page 3 Discussion: As part of the 2011 Parks Capital Budget, Claremont Park Tennis Court Reconstruction was approved as a construction project with a budgeted amount of $150,000. This project included the removal and replacement of the tennis court perimeter fencing. The fencing portion of the project was completed in 2012. During the fencing construction, it was discovered that the base of the tennis courts required installation of drainage piping to dry the water saturated ground prior to installing the tennis court surface. The fencing and drainage portion of the project was completed in 2012 at a cost of $27,857 and the remaining budgeted amount of $122,143 was carried over to 2013. As part of the 2013 Parks Capital Budget, Glendale Tennis Court Reconstruction was approved as a construction project in the amount of $120,000. The Reconstruction of Tennis Courts — David Farr Park and Claremont Park project will consist of a complete reconstruction of the tennis court surfaces using penetration asphalt. This surface treatment is preferred by all Pickering Tennis Associations and provides a more durable, sustainable surface for tennis courts. The two projects were combined as Tender No. T -6 -2013 which was issued on March 8, 2013 and closed on Wednesday, March 27, 2013 with one company, Court Contractors Ltd., submitting a bid. The Health and Safety Policy, a current Workplace Safety and Insurance Board (WSIB) Workplace Injury Summary Report and a Clearance Certificate issued by WSIB as submitted by Court Contractors Ltd. has been reviewed by the Coordinator, Heath & Safety and deemed acceptable. The Certificate of Insurance is deemed acceptable to the (Acting) Manager, Budgets & Internal Audit. In conjunction with staff s review of the contractor's previous work experience on other projects of this nature with the City of Pickering and bonding available on this project the tender is deemed acceptable. Upon careful examination of the tender and relevant documents received, the Engineering & Public Works Department, recommends acceptance of the bid submitted by Court Contractors Ltd. for Tender No. T -6 -2013 in the gross amount of $224,343.70 (HST included) and that the total net project cost of $226,353.00 (net of HST rebate) be approved. Attachments: 1. Supply & Services Memorandum dated Wednesday, March 28, 2013 2. Location Maps Prepared By: d' v ob Gagen Supervisor, Parks Operations Approved /Endorsed By: Ric rd Holbo n, P. Eng. Director, Engineering & Public Works Report PW 03 -13 June 10, 2013 Tender No. T -6 -2013 Reconstruction of Tennis Courts — Page 4 David Farr Park and Claremont Park 'Grant Smith Manager Operations & Fleet Services Caryn Kong, CGA Senior Financial Analyst Capital &Debt Management CA" . �(; C Vera A. Felgq(macher C.P.P., CPPO, CPPB, C.P.M., CMM III Manager, Supply & Services RG:nw Recommended for the consideration of Pickering City/y�ouncil Tony Prevedel, P.Eng. Chief Administrative Officer Stan Karwowski. (Acting) Division Head Finance & Treasurer 2712-0 A 7ACi- MENT# N WIN — TO REPORT; IV E D MAR 2 0 2013 To: Richard Holborn Director, Engineering & Public Works From: Vera A. Felgemacher Manager, Supply & Services Copy: Manager, Capital Works & Infrastructure CITY OF PHCKERINC- ENGINEERING Memo March 28, 2013 Subject: Tender No. T -6 -2013 Tender for Reconstruction of Tennis Courts — David Farr Park and .Claremont Park - File: F- 5400 -001 One tender has been received for the above project. An advertisement was placed in the Daily Commercial News and on the City's website inviting companies to download the tendering documents and drawings for the above mentioned tender. One (1) bidder 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 13.03 (r) provides checking tendered unit prices and extensions unit prices shall govern and extensions will be corrected accordingly, which has been done. A Copy of the tender is attached for your review. along with the summary of costs. SUMMARY Harmonized Sales Tax Included Bidder Total Tendered Amount After Calculation Check Court Contractors Ltd. $224,343.70 $224,343.70 Pursuant to Information to Bidders Item 29, the following will be requested of the low bidder for your review during the evaluation stage of this tender call. Please advise when you wish us to proceed with this task. (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 Certificate of Clearance issued by Workplace Safety & Insurance Board; ATTACHMENT #---L— TOREPORT #x.03 -13 (d) the City's certificate of insuraant&41l completed by the bidder's agent, broker or insurer;; (e) The City's Accessibility Regulations for Contracted Services form currently dated and signed; (f) list of Sub - Contractors in accordance with General Conditions Item 32; and (g) Waste Management Plan to be used on this project in accordance with Tendering Specifications Item 18. Please include the following items in your Report to Council: (a) if items (a) through (c) noted above, are acceptable to the Co- ordinator, Health & Safety; (b) if item (d) — Insurance — is acceptable to the (Acting) Manager, Budgets & Internal Audit; (c) any past work experience with the low bidder Court Contractors Ltd. including work location; (d) without past work experience, if reference information is acceptable; (e) the appropriate account number(s) to which this work is to be charged; (f) the budget amount(s) assigned thereto; (g) Treasurer's confirmation of funding; (h) related departmental approvals; and (i) related comments 'specific to the project. Please do not disclose any information to enquiries except you can direct them to the City's website for the unofficial bid results as read out at the public tender opening. Bidders will be advised of the outcome in due course. If yo require further information, please feel free to contact me or a member of Supply & Se ` ces: 1 VAF /jg Attachments March 28, 2013 Tender No. T -6 -2013 Tender for Reconstruction of Tennis Courts — David Farr Park and Claremont Park Page 2 ATTACHMENT �' 3 O REPORT#FU) 03-)5 cal, o� l at �- Engineering & Public Works I — Department Attachment for Tender No. T -6 -2013 David Farr Park R�pGE�GG t-O P� s wz CO �Ln DRIVE o- v SUBJECT vo AREA , UGNAN D VvvII L- �g0 SP GN 0 0 cc vo r� CO Location Map — David Farr Park Proposed Construction Includes: Reconstruction of three outdoor tennis courts using penetration asphalt. Call a� ATTACHMENT #..._.v2 TO P.EPORi# L v 313 _? = of _.2� Engineering & Public Works Department Attachment for Tender No. T -6 -2013 Claremont Park NAG � MPS P � N o O � Z 0 Z SUBJ CT ARE ,.., o N G90 PGG� �"' gGP p,G� Location Map — Claremont Park Proposed Construction Includes: Reconstruction of two outdoor tennis courts using penetration asphalt. Report to Executive Committee Report Number: PW 04 -13 Date: June 10, 2013 From: Richard W. Holborn Director, Engineering & Public Works Subject: Supply and Delivery of One New Current Model Year Road Grader - Quotation No. Q -23 -2013 - File: A -1440 Recommendation: That Report PW 04 -13 of the Director, Engineering & Public Works regarding Quotation No. Q -23 -2013 for the Supply and Delivery of One New Current Model Year Road Grader be received; 2. That Quotation No. Q -23 -2013 as submitted by Nortrax Canada Inc. in the total quotation amount of $246,193.10 (HST included), for the Supply and Delivery of One New Current Model Year Road Grader, including a trade -in on the City's 2002 Volvo 740VHP be accepted; 3. That the total gross project cost of $249,583.00 (HST included), including the quotation amount and other associated costs, and the total net project cost of $224,757.00 (net of HST rebate) be approved; 4. That Council authorize the (Acting) Division Head, Finance and Treasurer to finance the net project cost of $224,757.00 as follows: a) that the sum of $220,000.00, be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed five years, at a rate to be determined; b) that the sum of $4,757.00 be funded from property taxes; c) that the annual repayment charges in the approximate amount $47,000.00 be included in the annual Current Budget for the City of Pickering, commencing in 2014 and continuing thereafter until the debenture financing is repaid; and any financing cost to be paid out of the Current Budget; 5. That the draft by -law attached to this report be enacted; and 6. That the appropriate City of Pickering Officials be authorized to take necessary action to give effect thereto. Report PW 04 -13 June 10, 2013 Supply and Delivery of One New Current Model Year Road Grader Quotation Q -23 -2013 Page 2 Executive Summary: The City of Pickering currently utilizes two motor graders to maintain approximately 220 lane kilometers of gravel surface road. This maintenance encompasses road surface conditioning as well as winter control. The replacement of the oldest grader, a 2002 Volvo 740VHP has been identified and approved in the 2013 Capital Budget. Specifications for the replacement grader were compiled from previous purchases as well as the latest emission standards. Supply & Services invited three vendors to participate, of which only one submitted a bid. This quotation also included an option to trade in the City's existing unit. Upon careful review of the quotation submitted by Nortrax Canada Inc., it is the recommendation of the Engineering & Public Works Department that the quotation submitted by Nortrax Canada Inc., including the trade -in option be approved. Financial Implications: 1. Quotation Amount Quotation No. Q -23 -2013 $282,870.00 Less Trade -in (65,000.001 Quotation Less Trade -in 217,870.00 HST 13% $28,323.10 Total Gross Quotation Amount $246,193.10 z. Estimated Project Gostina Summa Quotation No. Q -23 -2013 Less Trade -in $217,870.00 Associated Costs 3,000.00 Total Project Cost (excluding taxes) 220,870.00 HST (13 %) 28,713.00 Gross Project Cost $249,583.00 HST Rebate (11.24 %) ($24,826.00) Total Net Project Cost $224,757.00 3. Aooroved Source of Funds 013 Roads Capital Budget Account Code Source of Funds Budget Required 5320.1329.6178 Debt — 5 Years $300,000.00 $220,000.00 Property Taxes $0.00 $4,757.0 Total Funds $300,000.0 $224,757.0 Report PW 04 -13 June 10, 2013 Supply and Delivery of One New Current Model Year Road Grader Quotation Q -23 -2013 Page 3 Project Cost under (over) approved funds $75,243.00 The (Acting) Division Head, Finance and Treasurer has updated the City's 2013 Annual Repayment Limit and certified that this debenture financing and the repayment falls within the City's Annual Repayment Limit for debentures and financial obligations, and therefore, Ontario Municipal Board approval is not required prior to City Council's authorization. Discussion: Supply & Services invited three vendors to participate, and an advertisement was placed on the City's website for submission by Thursday, April 4, 2013. Only one company responded by the official submission date and time. Specifications for this replacement were compiled from previous purchases as well as the latest emission standards. This quotation also included an option to provide for a trade in of the City's existing road grader, a 2002 Volvo 740VHP on which the City will be exercising, thus reducing the quotation amount. Upon careful review of the quotation submitted by Nortrax for a 2013 Deere 870G Motor Grader, which has met all specifications set out in Quotation Q -23 -2013, it is the recommendation of the Engineering & Public Works Department that the quotation submitted by Nortrax Canada Inc., including the trade -in option in the amount of $246,193.10 (HST included) be accepted, and that a total net project cost of $224,757.00 (net of HST rebate) be approved. Attachments: 1. Supply & Services Memorandums dated April 8, 2013 and April 15, 2013 2. By -law to authorize the Supply and Delivery of One New Current Model Year Road Grader project in the City of Pickering and the issuance of debentures in the amount of $220,000.00 Prepared By: .,. Grant Smit - Marfager, Operations and Fleet Services Approved /Endorsed By: Richard Holbo A, P. Eng. DireQtor. gineering and Public Works Report PW 04 -13 Supply and Delivery of One New Current Model Year Road Grader Quotation Q -23 -2013 Vera A .�'relgemacfier C.P.P., CPPO, CPPB, C.P.M., CMM III Manager, Supply & Services `- e�,rYv1G b Caryn Kong, CGA Senior Financial Analyst* Capital & Debt Management GS:nw Stan Karwowski (Acting) Division Head Finance & Treasurer Recommended for the consideration of Pickering Cit Council Z/1 Z043 �Z" Tony Prevedel, P.Eng. Chief Administrative Officer June 10, 2013 Page 4 ATTACH M ENT # / TO REPORT# ° � — ENV E � of ,�_ AIPR 8 2013 CITY OF FICKERINr ENGINEERING Memo To: Richard Holborn April 8, 2013 Director, Engineering & Public Works From: Vera A. Felgemacher Manager, Supply & Services Copy: Manager, Operations & Fleet Services Subject: Quotation No. Q -23 -2013 Supply & Delivery of One New Current Model Year Road Grader File: F- 5300 -001 Quotations have been received for the above project. Three (3) companies were invited to participate and an advertisement was placed on the City's website. One (1) company has responded by the official submission date and time. Respondent: Nortrax Canada Inc. A copy of the quotation is attached for your review along with the summary of costs. Each line item provides a space for the vendor to indicate a "Yes, No, Specify" to provide the City with information and details to subjectively review each line item and the sum total of all specifications. Appendix A — Material Disclosure - Item 4 states: The City may request a demonstration of the equipment being quoted upon, including provision for City staff to operate the equipment being quoted upon. Such demonstration shall be provided at no charge to the City. Please advise if a demonstration of the equipment is required. Appendix A - Deliverables - Item 8 states: Where a minimum is called for, the item shall meet or exceed the capacity, size or performance specified. a) a mark in the "yes" space shall mean compliance with the specification and can be further detailed in the SPECIFY space. b) A mark in the "no" space shall mean a deviation from the specification and must be further detailed in the SPECIFY space. Deviations will be evaluated and acceptance of these deviations is within the discretion of the City of Pickering. ATTACHMENT# / TO REPORT# �� 04--13 Z of In accordance with Purchasing Policy Item 06.12, where the compliant quotation meeting specification and offering best value to the City is acceptable or where the highest scoring quotation is recommended and the total estimated price is over $125,000.00, the Manager, may approve the award, subject to the approval of the Director, Treasurer, CAO and Council. Please do not disclose any information to respondents during this time — they will be advised of the outcome in due course. Please direct inquiries to Supply & Services. If u require further information, please feel free to contact me or a member of Supply & Services. VAF /bk Attachment Quotation No. Q -23 -2013 — Supply & Delivery of One New Current Model Year Road Grader Page 3 ATTACH MENT#-2. fOREPORT# Pu)-104-i3 cn z X CD 0 (D '(D CD 0) 0 017 X 0 0 0. 0 (D 21.�.-, M� , "N,• CL Nom, t 0 , CD cn CD > CD 0 0 0 "N,• -31A - 1 . 0 -n 0 O (D Z (D 0 J0 0 0 0 z CL (D 0 ' -< .9 (D K) 4) CA) 0 CL CL (D IN CD > CD 0 0 CD "N,• 0 , CD cn 0 -31A - 1 . 0 -n 0 O (D Z (D 0 J0 0 0 0 z CL (D 0 ' -< .9 (D K) 4) CA) 0 CL CL (D IN ,ATTACHMENT# f TO.REPORT# PtJ 3 of PICKKE Memo To: Richard Holborn April 15, 2013 Director, Engineering & Public Works From: Vera A. Felgemacher Manager, Supply & Services Copy: Manager, Operations & Fleet Services Subject: Quotation No. Q -23 -2013 Supply & Delivery of One New Current Model Year Road Grader Submission Date: Thursday, April 4, 2013 - 12:00 noon (local time) - File: F- 5300 -001 Further to the memo dated April 8, 2013 the quotation will proceed to Stage II of the evaluation process. Stage II consists of a scoring on the basis of the Rated Criteria. Subject to the Terms of Reference and Governing Law, the top- ranked respondent as established under the evaluation will be selected to enter into a contract for the provision of the Deliverables. The selected respondent will be expected to enter into a contract within the timeframe specified in the selection notice. Failure to do so may, among other things, result in the disqualification of the respondent and the selection of another respondent, or the cancellation of the RFQ. Each member of the Evaluation Committee has completed evaluating the quotation and a combined average score for the quotation was determined, completing Stage II of the evaluation process. Nortrax Canada Inc. is the only respondent with a price of $282,870.00 HST extra with an optional trade in value of $65,000.00. In accordance with Purchasing Policy Item 06.12, where the compliant quotation or tender meeting specifications and offering best value to the City is acceptable or where the highest scoring proposal is recommended and the estimated total purchase price is over $125,000, the Manager may approve the award, subject to the approval of the Director, Treasurer, CAO and Council. An approved "on -line" requisition will be required to proceed. Please do not disclose pricing to enquiries. Calls can be redirected to Supply & Services. Respondents will bQ advised of the outcome in due course. If you! equire further information or assistance please contact me or a member of Supply & Servi� s. VF /bk nts ATTACHMENT# Z TiOREPORT# PVJ 04—I� The Corporation of the City of Pickering By -law No. Being a by -law to authorize the Supply and Delivery of One New Current Model Year Road Grader project in the City of Pickering and the issuance of debentures in the amount of $220,000.00 Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower -tier municipality may pass by -laws respecting matters within the spheres of jurisdiction described in that Section; and, Whereas Subsection 401 (1) of the Municipal Act, 2001; as amended, provides that a municipality may incur a debt for municipal purposes, whether by borrowing money or in any other way; and, Whereas Subsection 401 (3) of the Municipal Act, 2001, as amended, provides that a lower -tier municipality in a regional municipality does not have the power to issue debentures; and, Whereas The Regional Municipality of Durham has the sole authority to issue debentures for the purposes of its lower -tier municipalities including The Corporation of the City of Pickering (the "City "); and, Whereas the Council of the City wishes to proceed with debenture financing for the Supply and Delivery of One New Current Model Year Road Grader project; and Whereas before the Council of the City authorizes the Supply and Delivery of One New Current Model Year Road Grader project, the Council of the City had the Treasurer update the City's Annual Repayment Limit, the Treasurer calculated the estimated annual amount payable in respect of such project and determined that such annual amount would not cause the City to exceed the updated limit and, therefore, Ontario Municipal Board approval was not required prior to City Council's authorization as per Section 401 of the Municipal Act, 2001, as amended, and the regulations made thereunder; And whereas after determining that Ontario Municipal Board approval is not required, the Council of the City approved Report PW 04 -13 on the date hereof and awarded Quotation No. Q -23 -2013 for the Supply and Delivery of One New Current Model Year Road Grader project. /ATTACHMENT # TO REPORT# 4W04-12> By -law No. Page 2 Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. That the City proceed with the project referred to as "Supply and Delivery of One New Current Model Year Road Grader "; 2. That the estimated costs of the project in the amount of $224,757.00 be financed as follows: a) That the sum of $220,000.00 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed five years; b) That the balance of $4,757.00 be funded from property taxes; 3. That the funds to repay the principal and interest of the debentures be provided for in the annual Current Budget for the City commencing in 2014 or such subsequent year in which the debentures are issued and continuing thereafter until the debenture financing is repaid. By -law read a first, second and third time and finally passed this 17th day of June, 2013. David Ryan, Mayor Debbie Shields, City Clerk nt inq From: Richard W. Holborn Director, Engineering & Public Works Report to Executive Committee Report Number: PW 05 -13 Date: June 10, 2013 Subject: Supply and Delivery of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing - Quotation No. Q -22 -2013 - File: A -1440 Recommendation: That Report PW 05 -13 of the Director, Engineering & Public Works regarding the Supply and Delivery of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing be received; 2. That Quotation No. Q -22 -2013, as submitted by Tallman Truck Centre Limited for the Supply and Delivery of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing in the amount of $211,310.00 (HST included) be accepted; 3. That the total gross project cost of $212,440.00 (HST included) and a net project cost of $191,309.00 (net of HST rebate) be approved; 4. That Council authorize the (Acting) Division Head, Finance &Treasurer to finance the project as follows; (a) that the sum of $190,000.00 be financed by the issue of debentures through the Regional Municipality of Durham for a period not exceeding five years, at a rate to be determined; (b) that the balance of $1,309.00 be funded from property taxes; (c) that the annual repayment charges in the approximate amount of $41,000.00 be included in the annual Current Budget for the City of Pickering commencing in 2014 and continuing thereafter until the debenture financing is repaid and any financing cost to be paid out of the Current Budget; 5. That the draft by -law attached to this report be enacted; and 6. That the appropriate City of Pickering Officials be authorized to take necessary action to give effect; Report PW 05 -13 June 10, 2013 Supply and Delivery One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing Page 2 Executive Summary: The City of Pickering currently utilizes a fleet comprised of nine 4 -ton dump trucks and three 5 -ton dump trucks to perform a wide range of road maintenance activities, including winter control. The replacement of Unit #051, a 2003 Freightliner 4 =Ton Dump Truck with single axle and plow was approved in the 2013 Roads Capital budget. Four companies were invited to participate in Quotation No. Q -22 -2013, and an advertisement was placed on the City's website. Two companies responded to the quotation. The quotation submitted by Tallman Truck Centres Ltd. meets the specifications and is recommended for approval. Financial Implications: 1. Quotation Amount No. Q -22 -2013 $187,000.00 HST 13% 24,310.00 Total Gross Quotation Amount $211,310.00 Z. Estimated Nroiect costina Summa Quotation No. Q -22 -2013 $187,000.00 Licence Fee & Associated Costs 1,000.00 Total Cost 188,000.00 HST (13 %) 24,440.00 Total Gross Project Cost 212,440.00 HST Rebate (11.24 %) (21,131.00) Total Net Project Cost $191,309M 3. Aparoved Source of Funds 013 Roads Capital Budget Account Code Source of Funds Budget Required 5320.1306.6158 Debt — 5 Years $215,000.00 $190,000.0 Property Taxes 0.00 1,309.0 • Total Funds $215,000.00 Report PW 05 -13 June 10, 2013 Supply and Delivery One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing Page 3 Project Cost under (over) approved funds by $23,691.00 The (Acting) Division Head Finance & Treasurer has updated the City's 2013 Annual Repayment Limit and certified that this debenture financing and the repayment falls within the City's Annual Repayment Limit for debentures and financial obligations, and therefore, Ontario Municipal Board approval is not required prior to City Council's authorization. Discussion: The purchase of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing was identified and approved by Council in the 2013 Roads Capital Budget. Utilizing existing specifications from previous purchases, Supply & Services invited four companies to participate, and an advertisement was placed on the City's website. Two bidders responded and have submitted a quotation for this project. The low quotation submitted by Harper Truck Centre Inc. did not meet the minimum specification for set forward axle required by the City. This would have a detrimental effect on vehicle performance during heavy use such as winter control. Based upon these facts, as well as a careful examination of all quotations received by Supply & Services, the Engineering & Public Works Department recommends acceptance of the quotation submitted by Tallman Truck Centres Limited, in the amount of $211,300.00 (HST included) and that the total net purchase cost of $191,309.00 be approved. Attachments: 1. Supply & Services Memorandum dated March 28, 2013 2. By -law to authorize the Supply and Delivery of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing project in the City of Pickering and the issuance of debentures in the amount of $190,000.00 Report PW 05 -13 Supply and Delivery One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing Prepared By: w4av� Graifif Smith nager, Operations &V leet Services CA Approved /Endorsed By: June 10, 2013 Y_40� - � Richard Holb rn, P. Eng. Dir or, Engineering & Public Works Page 4 Vera A. Felgemacf%r Stan Karwowski C.P.P., CPPO, CPPB, C.P.M., CMM III (Acting) Division Head Finance & Manager, Supply & Services Treasurer � �wY Caryn Kong, CGA Senior Financial Analyst - Capital & Debt Management GS:nw Recommended for the consideration of Pickering City Council _ 2/, Zo13 Tony Prevedel, P.Eng. Chief Administrative Officer .0, • PICRERsUNG Mem To: Richard Holborn Director, Engineering & Public Works From: Vera A. Felgemacher Manager, Supply & Services Copy: Manager, Operations & Fleet Services March 28, 2013 Subject: Quotation No. Q -22 -2013 Supply & Delivery of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing File: F- 5300 -001 RECEIVED APR 2 2013 CITY OF PICKERING ENGINEERING Quotations have been received for the above project. Four (4) companies were invited to participate and an advertisement was placed on the City's website. Two (2) companies have responded by the official submission date and time. Respondent: Harper Truck Centre Tallman Truck Centre Copies of the quotations are attached for your review along with the summary of costs. Each line item provides a space for the vendor to indicate a "Yes, No, Specify" to provide the City with information and details to subjectively review each line item and the sum total of all specifications. Appendix A — Material Disclosure - Item 3 states: The City may request a demonstration of the equipment being quoted upon, including provision for City staff to operate the equipment being quoted upon. Such demonstration shall be provided at no charge to the City. Please advise if a demonstration of the equipment is required. Appendix A - Deliverables - Item 8 states: Where a minimum is called for, the item shall meet or exceed the capacity, size or performance specified. Where a minimum is called for, the item shall meet or exceed the capacity, size or . performance specified. a) A mark in the "yes" space shall mean compliance with the specification and can be further detailed in the SPECIFY space. ATTACHMENT# TO REPORT #�_65- 13 I—, of b) A mark in the "no" space shall mean a deviation from the specification and must be further detailed in the SPECIFY space. Deviations will be evaluated and acceptance of these deviations is within the discretion of the City of Pickering. Where brand names, models or specifications are specified as "no substitution ", alternatives will be not considered. Part 2 - Evaluation of Quotations 2:1 ` Stages of Evaluation The evaluation of quotations will be conducted in the following stages: • . Stage l will consist of a review to determine which submissions satisfy all of the mandatory requirements. Those submissions that satisfy the mandatory requirements will proceed to Stage II. • Stage II will consist of a scoring on the basis of the Rated Criteria. Subject to the Terms of Reference and Governing Law, the top- ranked respondent as established under the evaluation will be selected to enter into a contract for the provision of the Deliverables. The selected respondent will be expected to enter into a contract within the timeframe specified in the selection notice. Failure to.do so may, among other things, result in the disqualification of the respondent and the selection of another respondent, or the cancellation of the RFQ. During Stage I, all submissions satisfied mandatory requirements and can proceed to Stage II. 2.3 Stage II - Rated Criteria Stage II will consist of an evaluation of the total purchase price to determine lowest price and acceptable specifications. Rated Criteria Category Weighting Points Pricing 20 Acceptable Specifications 10 Total Points 30 In the event of a tie score, the selected respondent will be determined in accordance with the City's Purchasing Procedures Rated Criteria. Pricing - Total Points = 20 Points Pricing will be scored based on a relative pricing formula using the lump sum price set out in the Rate Bid Form, which has been completed. Acceptable Specifications = 10 Points All specifications must be fulfilled subject to Appendix A - Item 7. Quotation No. Q -22 -2013 - Supply & Delivery of One New 41,000 LB. GVW Dump Truck with Page 2 Snow Plow and Wing ATTACHMENT# TO REPORT# F W 85-13 I of Attached please find Evaluation Form — Stage II to be used by Evaluation Committee Members. Please co- ordinate an appropriate date and time fora meeting of the evaluation committee. Each member should review the submissions carefully according to the rating criteria before the meeting time. In accordance with Purchasing Policy Item 06.12, where the compliant quotation meeting specification and offering best value to the City is acceptable or where the highest scoring quotation is recommended and the total estimated price is over $125,000.00, the Manager, may approve the award, subject to the approval of the Director, Treasurer, CAO and Council. Please do not disclose any information to respondents during this time — they will be advised of the outcome in due course. Please direct inquiries to Supply & Services. If you require further information, please feel free to contact me or a member of Supply & Services. 3 /AEI VAF Attachment Quotation No. Q -22 -2013 — Supply & Delivery of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing Page 3 z O cD Ir 7_. O su 1"F _ v a� ATTACHMENT #—j— TO REPORT #mss ✓'� --A—°f m a� ic rt '= o cD � O O cD z cD 0 0 0 r W 5G v _AA \I 3 cn SO A� A IV, _ O z O A N N N O CA) O. cn CD 0 0 n =i4 CD iL d� w? rf 'i p3 m a� ic rt '= o cD � O O cD z cD 0 0 0 r W 5G v _AA \I 3 cn SO A� A IV, _ O z O A N N N O CA) ATTACHMENT # �L TO REPORT# Fk) 05- G The Corporation of the City of Pickering By -law No. Being a by -law to authorize the Supply and Delivery of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing project in the City of Pickering and the issuance of debentures in the amount of $190,000.00 Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower -tier municipality may pass by -laws respecting matters within the spheres of jurisdiction described in that Section; and, Whereas Subsection 401 (1) of the Municipal Act, 2001, as amended, provides that a municipality may incur a debt for municipal purposes, whether by borrowing money or in any other way; and, Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a lower -tier municipality in a regional municipality does not have the power to issue debentures; and, Whereas The Regional Municipality of Durham has the sole authority to issue debentures for the purposes of its lower -tier municipalities including The Corporation of the City of Pickering (the "City "); and, Whereas the Council of the City wishes to proceed with debenture financing for the Supply and Delivery of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing project; and, Whereas before the Council of the City authorizes the Supply and Delivery of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing project, the Council of the City had the Treasurer update the City's Annual Repayment Limit, the Treasurer calculated the estimated annual amount payable in respect of such project and determined that such annual amount would not cause the City to exceed the updated limit and, therefore, Ontario Municipal Board approval was not required prior to City Council's authorization as per Section 401 of the Municipal Act, 2001, as amended, and the regulations made thereunder; And whereas after determining that Ontario Municipal Board approval is not required, the Council of the City approved Report PW 05 -13 on the date hereof and awarded Quotation No. Q -22 -2013 for the Supply and Delivery of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing project. ATTACHMENT # 2 TO REPORT #±L) By -law No. Page 2 Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. That the City proceed with the project referred to as "Supply and Delivery of One New 41,000 LB. GVW Dump Truck with Snow Plow and Wing "; 2. That the estimated costs of the project in the amount of $191,309.00 be financed as follows: a) That the sum of $190,000.00 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed five years; b) That the balance of $1,309.00 be funded from property taxes; 3. That the funds to repay the principal and interest of the debentures be provided for in the annual Current Budget for the City commencing in 2014 or such subsequent year in which the debentures are issued and continuing thereafter until the debenture financing is repaid. By -law read a first, second and third time and finally passed this 17th day of June, 2013. David Ryan, Mayor Debbie Shields, City Clerk From: Paul Bigioni Director, Corporate Services & City Solicitor Report to Executive Committee Report Number: FIN 14 -13 Date: June 10, 2013 Subject: Section 357/358 of the Municipal Act —Adjustment to Taxes Recommendation: That Report FIN 14 -13 of the Director, Corporate Services & City Solicitor be received; 2. That the write -offs of taxes as provided under Section 357/358 of the Municipal Act, 2001 be approved, and, 3. That the appropriate officials of the City of Pickering be authorized to take the necessary action to give effect hereto. Executive Summary: Not Applicable Financial Implications: If approved, the write -off of taxes as referred to in Attachment 1 of this report, represents a gross cost of $90,961.29, with a net cost to the City of approximately $24,975.24, the balance being charged back to the Region of Durham and the School Boards. Pickering's share of the costs will be charged to the 2013 Current Budget allocation under General Government — Provision for Uncollectable Taxes. The 2013 budget provision is $286,359.00, and $152,218.74 (including the above) has been spent to date. Discussion: The Municipal Act provides the Treasurer with various tax tools regarding the administration and collection of property taxes. Under the provisions of Section 357 of the Municipal Act, reduction of taxes due to fire, demolition, exemption, assessment change or error is allowed. Change in realty tax class can translate into lower property taxes if the property went from industrial to commercial tax class or commercial to residential tax class. Demolitions, and other physical changes to a property, such as filling in a swimming pool, or damage caused by fire or flooding, result in a reduction in assessment and a corresponding reduction in property taxes. Five of the properties referred to in Attachment 1 reflecting the comment "Ceased to be liable for tax at rate it was taxed" have had their assessment class revised to a class with a lower tax rate. Report FIN 14 -13 June 10, 2013 Page 2 Section 358 of the Municipal Act, allows the taxpayer to have their assessment revised by MPAC where they believe that they have been overcharged due to a gross or manifest clerical error on the part of MPAC. They are allowed to seek reassessment of the current year, plus two prior years in which the application is made. This section of the Act allows for the reduction of taxes due to such errors, once confirmed by the Regional Assessment Office of MPAC. One of the properties referred to in Attachment 1 reflects the comment "Gross or Manifest Clerical Error (by MPAC)." This property was assessed with incorrect acreage information, and this report will adjust the related accounting transactions to reflect the correct assessments for all eligible years. The purpose of Sections 357/358 is to allow the municipality and MPAC to quickly rectify assessment classification changes, and prior year's errors quickly without having the property owner go through the formal assessment review process. Attachments: 1. Section 357/358 Adjustment to Taxes - Taxable Prepared By: Approved /Endorsed By: Donna elong Stan Karw ki, IV! MA Supervisor, Ta a on (Acting) D visi Head, Finance & Paul Bigioni Director, Cor or to S rvices & City Solicitor SK:dd Recommended for the consideration of Pickering City Council 21, Zo/3 Tony Prevedel, P.Eng. Chief Administrative Officer C U a 0 T U N a) X (0 H O C E Q Lo n Li c 0 N M CD N m wo C R � n Lo m m Lo Lo Lo � n Lo Lo Lo n UD � U n Q in u) (n (n )n )n (n (n (n (n (n (n (n m M M M M M M M M M M M M M M M M M M M Q Q M ^O OcH O V� O� N O O O? 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T O O O E E E O O T O O a a a a aai a a D o `o o o aai 0 a ai 0 a m m m N m N N N N m m O O O y y y y N N N N m N N N N N m N N N m m m m m m m m m a) m m m m d a) m m MN m m m MN d() () U U U C7 C7 C7 U U a' U U Of Q co co cl) Q O V V O O O O O co co tO (0 co CD co 1- O O tO ATTACHMENT #-J--TO REPORT # I ' l3 Report to Executive Committee l4 Report Number: FIN 15 -13 Date: June 10, 2013 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Development Charges — Annual Indexing Recommendation: That Report FIN 15 -13 of the Director, Corporate Services & City Solicitor be received; 2. That effective July 1, 2013 as provided for in Section 16 of By -law 6978/09, the Development Charges referred to in Sections 6 and 11 of that By -law be increased by 0.8 percent; and, 3. That the appropriate officials of the City of Pickering be given authority to give effect thereto. Executive Summary: The Development Charges Act 1997 and Ontario Regulation 82198 and By -law 6978/09 provide for an annual adjustment to the City's development charges based on the Non - residential Building Construction Price Index in order to keep development charges revenues current with construction costs. The Non - residential Building Construction Price Index (CPI) for the current indexing year is 0.8 %. Adoption of the recommendations of this report will put into effect the higher rates for the period July 1, 2013 to June 30, 2014. Financial Implications: Increasing the development charges based on an increase in the CPI will assist in keeping the revenues generated in line with current costs. The residential development charges for single and semi detached units will increase by approximately $81. Other residential charges will increase similarly, and the commercial /industrial charge will increase by approximately $0.03 per square foot or $0.35 per square metre based on an increase of 0.8 %. Discussion: As provided for in Ontario Reg. 82198 and in the City's By -law 6978/09, each year the development charges charged by the City for all types of development may be indexed without amending the By -law. Adoption of the recommendations contained in this report will allow that increase to take effect July 1, Report FIN 15 -13 Subject: Development Charges- Annual Indexing June 10, 2013 Page 2 2013 thereby assisting in keeping revenues in line with the costs that development charges fund. Statistics Canada indicates the increase in the construction price statistics for the most recently available annual period ending March 31, 2013 of 0.8 percent for Non- residential Building Construction Price Index (an indicator of our costs of construction) for the Toronto area. The change is reflected in the table attached. . Upon Council's approval of the recommendations contained in this report, the development charges brochure will be updated to reflect the approved rates. The updated brochure will be posted on the City's website and made available a_ t various counters throughout the Civic Complex. Attachments: 1. Current and Proposed Development Charges 2013/2014 Prepared By: Approved /Endorsed By: Caryn Kong, CGA Senior Financial Analyst - Capital & Debt Management CK:ck Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer Stan Karwowski, MBA, CMA (Acting) Division Head, Finance & Treasurer Paul Bigioni Director, Co zll zo /3 & City Solicitor ATTACHMENT #_LTO REPORT #UI T-f3 City of Pickering Current Residential Development Charges Effective July 1, 2012 Per Dwelling Unit Service Category Single & Semi Detached Apt. One Bedroom & Smaller Apt. Two Bedroom & Larger Other Dwelling Units Growth Studies $91 $36 $48 $65 0.94 10.09 Total $4.04 $43.45 Fire Protection 271 107 146 194 Transportation — Roads & Related Operations 4,712 290 1,871 114 2,550 157 3,381 209 Stormwater Management 1,424 565 771 1,023 Parks & Recreation - Parkland Dev & Trails Recreation Facilities 442 2,346 176 932 239 1,270 317 1,684 Library 538 214 291 386 Total $10,114 $4,015 $5,472 $7,259 Current Non - Residential Development Charges Effective July 1, 2012 Service Category Per Sq. Foot Per Sq. Metre Transportation -Roads & Related $3.10 $33.36 Stormwater Management 0.94 10.09 Total $4.04 $43.45 Proposed Residential Development Charges Effective July 1, 2013 Per Dwelling Unit Service Category Single & Semi Detached Apt. One Bedroom & Smaller Apt. Two Bedroom & Larger Other Dwelling Units Growth Studies $92 $36 $48 $65 0.95 10.17 Total $4.07 $43.80 Fire Protection 273 108 147 196 $0.35 Transportation — Roads & Related Operations & Equipment 4,750 292 1,886 115 2,570 158 3,408 211 Stormwater Management 1,435 570 777 1,031 Parks & Recreation - Parkland Dev & Trails Recreation Facilities 446 2,365 177 939 241 1,280 320 1,697 Libra . 542 216 293 389 Total $10,195 $4,047 $5,514 $7,317 $ Increase Residential $81 $32 $42 $58 Proposed Non - Residential Development Charges Effective July 1, 2013 Service Category Per Sq. Foot Per Sq. Metre Transportation -Roads & Related $3.12 $33.63 Stormwater Management 0.95 10.17 Total $4.07 $43.80 $ Increase Non - Residential $0.031 $0.35 From: Paul Bigioni Director, Corporate Services & City Solicitor Report to Executive Committee Report Number: FIN 16 -13 Date: June 10, 2013 Subject: 2013 Property and Liability Insurance Renewal (Six Months) Recommendation- That Report FIN 16 -13 of the Director, Corporate Services & City Solicitor regarding the insurance renewal be received; 2. That the City of Pickering renew its property, liability and other insurance policies through the Frank Cowan Company for the period July 1, 2013 to January 1, 2014 in the amount of $391,913 ( plus applicable taxes) and inclusive of terms and conditions acceptable to the (Acting) Division Head Finance & Treasurer; 3. That L.V. Walker & Associates be confirmed as the City's Adjuster of Record for property, liability and other insurance and related matters-, 4. That the (Acting) Division Head, Finance & Treasurer be authorized to settle any claims including any adjusting and legal fees, where it is in the City's interest to do so-, 5. That the (Acting) Division Head, Finance & Treasurer be authorized to purchase additional insurance, make changes to deductibles and existing coverages, and alter terms and conditions as becomes desirable or necessary in order to limit potential liability exposure and to protect the assets of the City and its elected officials and staff; and, 6. That the appropriate officials be authorized to take the necessary actions to give effect thereto. Executive Summary: The City's insurance program continues to operate successfully and the above. Recommendations provide for a renewal of the policies essentially on the same or improved terms and conditions as in past years, with coverage for the Library, its Board and its employees. Financial Implications: The insurance premium has been provided for in the approved 2013 budget and the renewal premium cost is within the 2013 budgeted amount. The premium increase is approximately 6.32% over last year adjusted for the six month renewal period. Report FIN 16 -13 June 10, 2013 Page 2 Discussion: Each year on July 1, the City's general liability and property insurance policies come up for renewal. As approved by Council at the time of the 1998 renewal, the Treasurer undertook an extensive review of all aspects of the City's insurance program. The City of Pickering embarked on a Risk Management Program, the initial phase of which involved negotiating renewing premiums with the City's broker. The result of the negotiations was a decrease of approximately $75,000 or 20 percent, in the premiums from those of the prior year. The savings were transferred to the Self Insurance Reserve. In our opinion, this program has served the City well, and today there is almost $1 million in this reserve. Recommendation 5 provides the (Acting) Division Head & Treasurer with the authority to continue to review and adjust insurance coverages where appropriate during the year to reflect business requirements and current market and business environment conditions. Change in Deductible Limits Every year, staff review the proposed insurance policy terms and deductible limits to ensure that the City is effectively managing its premium cost in relation to its claims history. The City's property (building) claims experience for the last five years is presented below: Property Claims Experience Year Number I Incurred Amount ($1 2008 -2409 _ 1 12,988 2009 -2010 0 0 2010 =2011 p 2011 -2012 1 2,500 20'12 -2013 .- � - 0 - 0 Total 12 15,488 As the above table indicates, the frequency of claims and corresponding loss has been relatively low. Based on the above information, the property deductible is increasing from $10,000 to $100,000 resulting in full year premium savings of $22,664. Insurance Renewal Period — Six Months The current insurance renewal term is for six months and expires on January 1, 2014 in contrast to the City's traditional twelve month renewal period. City staff plan on issuing a Request for Proposal (RFP) for its insurance program during the next few months. Staff are now conducting interviews with insurance consultants and the consultant will be used to prepare and evaluate the RFP to ensure that the City has the best possible insurance program within its budget. In addition, the insurance consultant will review the various insurance policy terms, coverages, exclusions and conditions submitted by the bidders to ensure that the City is adequately protected. This is a crucial step in the Report FIN 16 -13 June 10, 2013 Page 3 RFP process due to the fact that the true value if of the insurance program is reflected in the policy terms and conditions. The preliminary discussions with the insurance consultants recommend having an extended "RFP" period to ensure that the City can receive as many proposals as possible. An indirect benefit of the six month renewal is the fact that the insurance renewal period will now reflect the City's fiscal year and therefore, the budgeted amount for insurance will now be based on actual costs in contrast to professional estimates. Service to our Residents Regrettably, insurance claims or incidents do occur. A key strategic advantage of the City's insurance and risk management program is that every claim is processed with a customer service attitude. After a claim or incident is received, City staff quickly contact (within 24 hours) the claimant, to advise them that the City has received the claim and to assure them that the claim is being investigated by the City's Insurance Adjuster. The City's Insurance Adjuster has many years of local municipal insurance experience, which the City uses as an asset to investigate and settle claims. The City's Insurance Adjuster is familiar with the City and its municipal infrastructure and this experience has assisted in reducing claims cost due to his knowledge and /or his familiarity with the City, its policies and procedures. The Insurance Adjuster's service standard is to make contact with the claimant within two business days. Sometimes, the claimants may not completely agree with the outcome and City staff may review the claim and /or intervene to work towards a solution. The strategic advantage of the "local service delivery model" is that claims are handled quickly, professionally and with a customer service perspective. In addition, the current "local" service delivery model allows City staff hands on participation in the claims process to better serve claimants who, in the majority of situations, are City residents. Attachments: None Prepared By: Stan Karwowski (Acting) Division Head, Finance & Treasurer Approved / Endorsed By: Paul Bi iAi Directo Corp ate Services & City Solicitor Report FIN 16 -13 Recommended for the consideration of Pickerina Q'ItL Council Tony Prevedel, P.Eng. Chief Administrative Officer June 10, 2013 Page 4