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September 11, 2018
Executive Committee Agenda Tuesday, September 11, 2018 Council Chambers 2:00 pm Chair: Councillor Pickles For information related to accessibility requirements please contact : Linda Roberts 905.420.4660 extension 2928 lroberts@pickering.ca Anything highlighted denotes an attachment or link. By clicking the links on the agenda page, you can jump directly to that section of the agenda. To manoeuver back to the agenda page use the Ctrl + Home keys simultaneously, or use the “bookmark” icon to the left of your screen to navigate from one report to the next. -Cd:Jof- p](KERJNG --Cd/1 of--p] (KER 1 NG Executive Committee Meeting Agenda Tuesday, September 11, 2018 Council Chambers -2:00 pm Chair: Councillor Pickles (I) Disclosure of Interest Pages (II) Delegations 1. Paula Jesty, Delqitte LLP Re: Report FIN 19-18 (Ill) Matters for Consideration 1. Director, Finance & Treasurer, Report FIN 19-18 2018 Year End Audit Recommendation 1-26 1. That the Audit Service Plan as submitted by Deloitte LLP, included in this report, be received for information; and . 2. That the Chief Administrative Officer and the Director, Finance & Treasurer be authorized to sign the confirmation cif change to the master services agreement on behalf of the City. 2. Director, Corporate Services & City Solicitor, Report AS 01-18 27-36 Animal Sheltering Agreement for the Town of Whitchurch-Stouffville -Five-year term effective January 1, 2019 Recornmendation 1. That Council authorize Animal Services to provide sheltering services for The Corporation of the Town of Whitchurch-Stouffville for a five-year term effective January 1, 2019; 2. That Council approve the draft Agreement attached hereto for the provision of sheltering services to Whitchurch-Stouffville, and that the Mayor and City Clerk be authorized to execute the Agreement on behalf of · the City, subject to minor revisions agreeable to the Director, Corporate · Services & City Solicitor; For information related to accessibility requirements please contact: Linda Roberts 905.420.4660 extension 2928 lroberts@pickering.ca -C~0f-p](KER]N·G Executive Committee • Meeting Agenda Tuesday, September 11, 2018 Council Chambers -2:00 pm Chair: Councillor Pickles 3. 4. 3. That all sheltering service fees to be paid by the Town of Whitchurch-Stouffville be placed in the Animal Services Operating Revenue Account; and · 4. That the appropriate officials of the City of Pickering be given the authority to give effect thereto. Director, Corporate Services & City Solicitor, Report BYL 01-18 10th Annual Toys for Tickets and Food for Fines 2018 Recommendation 37-38 1. That parking tickets issued between December 1 through 21, 2018 be eligible for the Toys for Tickets/Food for Fines program; 2. That the Toys for Tickets/Food for Fines program be implemented from December 1 through December 21, 2018; and 3. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Director, Community Services, Report CS 27-18 Pickering Sports Medicine & Wellness Centre -Lease Amending Agreement Recommendation 39-67 1 . That the Mayor and the City Clerk be authorized to execute the Lease Amending Agreement with Angela Dye Physiotherapy Professional Corporation carrying on business as Pickering Sports Medicine & Wellness Centre as set out in Attachment 1 to this report, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor:. 2. That the appropriate officials of the City of Pickering be authorized to take necessary actions as indicated in this report. -Cdt)0f-_ -P1CKER1NG Executive Committee Meeting Agenda Tuesday, September 11, 2018 Council Chambers -2:00 pm Chair: Councillor Pickles 5. Director, Community Services, Report CS 28-18 Security Services -Contract Extension Recommendation 68-71 1. That the Mayor and the City Clerk be authorized to extend the contract with Best Guard· Security Inc., as set out in Attachment 1 to this report, for a term ending April 30; 2019, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor. 2: That the appropriate officials of the City of Pickering be authorized to take necessary actions as indicated in this report. 6. Director, Engineering Services, Report ENG 22-18 Tender for Asphalt and Concrete Repairs 72-79 -Tender No. T-19-2018 Recommendation 1. That Tender No. T-19-2018 for Asphalt and Concrete Repairs submitted by Aloia Bros. Concrete Contractors Ltd., in the amount of $317,455.48 (HST included) be accepted; 2. That the total gross project cost of $344,968.00 (HST included), including the tender amount and other associated costs, and the total net project cost of $310,654.00 (net of HST rebate) be approved; 3. That the Di(ector, Finance & Treasurer be authorized to finance the net project cost of $310,654.00 as follows: · a) The sum of $248,549.00 as approved in the 2018 Current Budget -Sidewalk Rehabilitation Program to be funded by a t(ansfer from the Federal Gas Tax Reserve Fund; b) The sum of $7,602.00 as approved in the 2018 Current Budget-Water Resources & Development Services -Roads Maintenance to be funded from property taxes; --C~0f--p](KERJNG Executive Committee Meeting Agenda Tuesday, September 11, 2018 Council Chambers.-2:00 pm Chair: Councillor Pickles 7. 8. 9. c) The sum of $45,000.00 as approved in the 2018 Current Budget -Roads -Asphalt and Concrete Repairs program to be funded from property taxes; d) The over expenditure amount of $9,503.00 to be funded from property taxes; and 4. . That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Director, Finance & Treasurer, Report FIN 18-18 80-82 Section 357/358 of the Municipal Act-Adjustment to Taxes Recommendation 1. That the write-off ortaxes as provided for in Attachment 1, in accordance with sections 357 and 358 of the Municipal Act, 2001 be approved; and 2. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Director, Corporate Services & City Solicitor, Report LEG 06-18 City of Pickering Proposed Sale to 2198136 Ontario Ltd. 875 Kingston Road, Pickering Recommendation 83-85 1. That the land described as Part 3, Plan 40R-25703, Pickering be sold to 2198136 Ontario Ltd. (or as it may further direct) for a price of $120,000; 2. That the Director, Corporate Services & City Solicitor be authorized to execute a. Transfer of the said lands, as well as any other documents, instruments and agreements as may be necessary to give effect to the above-noted transfer; and 3. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Director, Corporate Services & City Solicitor, Report CLK 03-18 2019 Committee and Council Meeting Schedule Recommendation 86-87 -C~0f-p](KER]NG Executive Committee Meeting Agenda Tuesday, September 11, 2018 Council Chambers -2:00 pm Chair: Councillor Pickles That the 2019 Standing Committee and Council Meeting Schedule included as Attachment 1 to this report, be approved. (IV) Other Business (V) Adjournment --Cdfjof--Pl(KERlNG Report to Executive Co.mmittee Report Number: FIN 19-18 Date: September 11, 2018 From: Stan Karwowski Director, Finance & Treasurer Subject: 2018 Year End Audit Recommendation: 1. That the Audit Service Plan as submitted by Deloitte LLP, included in this report, be received for information; and 2. That the Chief Administrative Officer and the Director, Finance & Treasurer be authorized to sign the confirmation of change to the master services agreement on behalf of the City. Executive Summary: In accordance with generally accepted auditing standards, the Audit Plan is prepared to communicate the auditor's approach and reporting responsibilities to the Executive Committee, who has oversight responsibility for the financial reporting process. This plan is submitted prior to the commencement of the year end audit. Financial Implications: The base audit fee for City and Library is estimated at $70,000. This is the same fee as in the previous year. Sufficient provision is available in the 2018 budget. Discussion: In the Committee's role as the body responsible for oversight of the financial reporting process, it must review the Audit Plan for the 2018 year end audit. The Audit Plan includes the scope of the audit services to be provided, the auditor's reporting responsibilities and an outline of the audit approach. It is included as Attachment 1 to this report. The master services agreement (MSA) with Deloitte LLP (Deloitte), dated October 28, 2016, summarizes the services Deloitte will provide, their responsibilities and management's responsibilities. New and revised auditor reporting requirements have resulted in a new audit report for Financial Statement audits. The new reporting requirements and the expected form of the audit report are provided in th~ confirmation of change letter (Attachment 2). The signing of the confirmation of change qonfirms the mutual understanding of the changes to auditor reporting requirements and forms part of the master services agreement with Deloitte. 1 2 FIN 19-18 Subject: 2018 Year End Audit Attachments: . 1. 2018 Audit Service Plan September 11, 2018 Page 2 2. Confirmation of Change Related to Auditor Reporting Requirements Prepared By: ~:;-lLc.e _g_¼M Kristine Senior, CPA, CA Manager, Accounting Services Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer Approved/Endorsed By: Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer ½· 2.1, 'l_ote, Deloitte. The Corporation of the City of Pickering 2018 Audit service plan For the year ending December 31, 2018 To be presented to the Executive Committee September 11, 2018 ATTACHMENT#_L_ TO REPORT#L.11! /q -Ii 3 4 Deloitte. August 23, 2018 Private and confidential To the Members of the Executive Committee of The Corporation of the City of Pickering 1 The Esplanade Pickering ON UV 6K7 2018 Audit service plan Dear Executive Committee members: Deloitte LLP . 400 Applewood Crescent Suite 500 Vaughan ON L4K 0C3 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca We are pleased to present our 2018 audit service plan for The Corporation of the City of Pickering ("the City"), which describes our audit scope and strategy, our audit approach and our planned communications with yo·u. Our audit will include: • An audit of the City of Pickering's consolidated financial statements. (the "Financial Statements") for the year ending December 31, 2018 prepared in accordance with Canadian Public Sector Accounting Standards ("PSAS") • An audit of the City of Pickering Public Library Board's financial statements for the year ending December 31, 2018 prepared in accordance with Canadian PSAS, and • An audit of the Trust Funds of the City of Pickering's financial statements for the year ending December 31, 2018 prepared in accordance with Canadian ~ccounting Standards for Not-for-Profit Organizations. We are providing this audit service plan to the Executive Committee ("the Committee") on a confidential basis. It is intended solely for the use of the Committee to assist you in discharging your responsibilities with respect to the Financial Statements and is not intended for any other purpose. Accordingly, we disclaim any responsibility to any other party who may rely on it. We look forward to discussing our Audit service plan with you and to answering any questions that you may have. Yours truly, Chartered Professional Accountants Licensed Public Accountants The Corporation of the City of Pickering I Table of contents Table of contents Our audit explained Audit risks Appendices Appendix 1 -Audit approach Appendix 2 -Communication requirements 1 3 Appendix 3 -New and Revised· Public Sector Accounting Standards © Deloitte LLP and affiliated entities 5 6 The Corporation of the City of Pickering 1. Our audit explained Our audit explained 1 Group audit When designing our audit strategy, we consider: • The financial significance or relative importance of the consolidated entities or any government business enterprises accounted for on a modified equity basis • The complexity and nature of the operations, internal control and accounting issues on each consolidated entity, and • The d\'!gree of centralization or decentralization of processes and controls. We intend to use the work of the auditor of Veridian Corporation. We will complete all required communications with the Component auditor, ensure the accounting for the City's share of Veridian income is appropriate and ensure the disclosures in the Financial Statements are adequate. Materiality We are responsible for providing reasonable assurance that your Financial Statements as a whole are free from material misstatement. Our materiality levels are based on professional judgment and will be determined using total expenses or fund balances as a reference point for the ultimate determination of materiality as follows: • Consolidated Financial Statements for the City -2.5 -3.0% of expenses • City of Pickering Public Library Board -approximately 3% of expenses, and • City of Pickering Trust Funds -approximately 3% of fund balances. We will inform the Executive Committee of all ·uncorrected misstatements greater than a clearly trivial amount (5% of materiality) and any · misstatements that are, in our judgment, qualitatively material. In accordance with Canadian GAAS, we will ask that any misstatements be corrected. Audit scope and terms of engage~ent We have been engaged to perform the audits of the City, Library, and Trust Fund's Financial Statements as at, and for the year ending, December 31, 2018 (the "Financial Statements") prepared in accordance with Canadian Public Sector Accounting Standards ("PSAS") for the City and the Library Board and Canadian Accounting Standards for Not-For-Profit Organizations for the Trust Funds. Our audits will be conducted in accordance with Generally Accepted Auditing Standards ("GAAS"). The terms and conditions of our engagement are described in the master services agreement which is dated October 28, 2016, and the confirmation of changes dated August 23, 2018, to be signed on behalf of management and the Executive Committee. We have scheduled the interim audit the week of November 12, 2018 and the year-end fieldwork commencing March 25, 2019. · Audit risks Through our preliminary risk assessment process, we have identified the audit risks. These risks of material misstatement and related audit responses are described in the Audit risks section of this report. © Deloitte LLP and affiliated entities The Corporation of the City of Pickering I Our audit explained 2 Fraud risk We will develop our audit strategy to address the assessed risks of material misstatement due to fraud. Determining this strategy will involve: 1. Asking people involved in the financiai reporting process about inappropriate or unusual activity. 2. Testing a sample of journal entries throughout the period as well as adjustments made at the end of the reporting period. 3. Identifying and obtaining an understanding of the business rationale for significant or unusual transactions that are outside the normal course of business. 4. Evaluating whether your accounting policies may be indicative of fraudulent financial reporting resulting from management's effort to manage results. 5. Evaluating whether the judgements and decisions related to management estimates indicate a possible bias. 6. Incorporating an element of unpredictability in selecting our audit procedures. We will also ask the Executive Committee for their views about the risk of fraud, whether they know of any actual or suspected fraud affecting the City and their role in the oversight of management's antifraud programs. If we suspect fraud involving management, we will immediately inform the Executive Committee of our suspicions and discuss the nature, timing, and extent of audit procedures necessary to complete the audit. Reliance on service organization Complete engagement reporting Under Canadian GAAS, we are required to communicate certain matters to the Executive Committee. The primary reports and formal communications through which we will address these matters are: • This Audit Service Plan • Year End Communication, and • .Our Auditor's Reports on the Financial Statements. Further details on our communication requirements can be found in Appendix 2. The City employs the following third party service organization in an outsourcing arrangement that impacts financial reporting information: • ADP Canada (payroll) We intend to rely on the service auditor's rep_ort issued for this third party service organization. If our assessment does not provide us with sufficient appropriate audit evidence, we will need to perform additional audit procedures to address the risks of material misstatements in the Financial Statements. We also intend to use the work of the City's actuary in their determination of the City's post-employment and worker's compensation benefits. We will review and test any data and assumptions used, ensure the disclosure in-the Financial Statements is adequate and that the actuary is in good standing with the Canadian Institute o_f Actuaries. © Deloitte LLP and affiliated entities 7 8 The Corporation of the City of Pickering I _Audit risks Audit risks The following tables set out the audit risks that we identified during our preliminary planning activities, including our proposed response to each risk. Our planned audit response is based on our assessment of the likelihood of a risk's occurrence, the significance should a misstatement occur, our determination of materiality and our prior knowledge of the City. Revenue recof;!nition* ¥¥Mi Audit risk Canadian GAAS includes the presumption of a fraud risk involving improper revenue recognition. (Revenue/deferred revenue) !:'.ll!nage8!!,ent override of controls* Audit risk Under Canadian GAAS, it is the responsibility of the management, with the oversight of those charged with governance, to place a strong emphasis on fraud prevention and detection. Oversight by those charged with governance includes considering the potential for override of controls or other inappropriate influence over the financial reporting process. Management override of controls is present in all entities. It is a risk of material misstatement resulting from fraud and therefore is considered as a significant risk. · Proposed merger of Veridian Corporation and Y,YJ::itby Hydro Energy Corporation Audit risk The shareholders of Veridian Corporation and Whitby Hydro Energy Corporation have approved a merger. There is a risk that the status of the merger arid the impact is not appropriately disclosed or accounted for in the financial statements. *Significant audit risks Our proposed audit response • Certain revenue streams are presumed areas of significant audit risk. We will test the design and implementation of controls in significant revenue streams and perform substantive analytic procedures and/or detailed testing in these areas, and • Substantive testing to determine if restricted contributions (i.e., development charges), and government transfers/grants have been recognized appropriately. (Revenue vs. deferred revenue). Our proposed audit response • Engage in periodic fraud discussions with certain members of senior management and others • Consider the potential for bias In judgments and estimates, including performing retrospective analysis of significant accounting estimates • Evaluate the business rationale for any significant unusual transactions • Evaluate the City's fraud risk assessment an'd consider entity-level internal controls and internal controls over the closing and reporting process • Test journal entries that exhibit characteristics of possible management override of controls, identified . using manual techniques. Our proposed audit response • Engage in regular discussions with management to remain abreast of merger status. · • Review merger agreements, if available, and monitor approval process by the Ontario Energy Board, to ensure disclosures in the financial statements are appropriate and adequate. As we perform our audit procedures, we will inform you of any significant changes to the significant risks discussed above and the reasons for those changes. · 3 © Deloitte LLP and affiliated entities The Corporation of the City of Pickering ·1 Appendix 1 -Audit approach Appendix 1 -Audit approach • Deloitte's audit approach is a systematic methodology that enables us to tailor our audit scope and plan to address the unique issues facing the City. The following steps are not necessarily sequen~ial nor are they mutually exclusive. For example, once we have developed our audit plan and the audit is being performed, we may become aware of a risk that was not identified during the planning phase. Based on that new information, we would reassess our planning activities and adjust the audit plan accordingly. 1. Initial planning The Deloitte audit approach begins with an extensive planning process that includes: • Assessing your current business and operating conditions • Understanding the composition and structure of your business and organization • Understanding your accounting processes and internal controls • Understanding your information technology systems . • Identifying potential engagement risks • Planning the scope and timing of internal control and substantive testing that take into account the specific identified engagement risks 2. Assessing and responding to engagement risk Our audit approach combines an ongoing identification of risks with the flexibility to adjust our approach when additional risks are identified. Since these risks inay impact our audit objectives, we consider materiality in our planning to focus Qn those risks that could be significant to your financial reporting. Consideration of the risk of fraud When we identify a misstatement or control deficiency, we consider whether it may be indicative of fraud and. what the implications of fraud and significant error are in relation to other aspects of the audit, particularly the reliability of management representations. In determining our audit strategy to address the assessed risks of material misstatement due to fraud, we will: • Assign and supervise personnel; taking into account the knowledge, skill and ability of individuals with significant engagement responsibilities and our assessment of the risks of material misstatement due to . fraud for the engagement. • Evaluate whether the City's selection and application of accounting policies, particularly those related to subjective measurements and complex transactions, may be indicative of fraudulent financial reporting resulting from management'.s effort to man.age results. • Incorporate an element of unpredictability when selecting the nature, timing and extent of our ·audit procedures. 4 © Deloitte LLP and affiliated entities 9 10 The Corporation of the City of Pickering I Appendix 1 -Audit approach We will inquire directly of the Executive Committee regarding: • Its views about the risk of fraud • Whether it has knowledge of any actual or suspect~d fraud affecting the City, and • The role .it exercises in the oversight of fraud risk assessment and the establishment of mitigating controls. We will also inquire if the Executive Committee is aware of tips or complaints regarding the City's financial reporting and, if so, the Executive Committee's responses to such tips and complaints and whether it is aware of matters relevant to the audit, including, but not limited to; violations or possible violations of laws or regulations. · If we suspect fraud involving management, we will communicate these suspicions to the Executive Committee and discuss the nature, timing, and extent of audit procedures necessary to complete the audit. Information technology An important part of our audit planning process involves gaining an understanding of: 1. The importance of the computer environment relative to the risks to financial reporting 2. The way in whic'7 that environment supports the control procedures we intend to rely on when conducting our audit, and 3, The computer-based information that support~ our substantive procedures. The objective of our review of computer controls is to identify potential areas of risk and assess the relevance, reliability, accuracy and completeness of the data produced by the systems. We also assess the design and implementation of the computer environment and determine the reliability of the financial information used to generate the financial statements, To accomplish this, we gain an up-to-date understanding of your organization's computer processing environment and our understanding of the relevant general computercontrols. 3. Developing and executing the audit plan The performance of an audit includes evaluating the design and assessing the implementation of internal controls relevant to the audit, testing the operational effectiveness of the controls we intend to rely on, and performing substantive audit procedures. Audit procedures The timing of our audit procedures is dependent upon a number of factors including the need to coordinate with management for the provision of supporting analysis and other documentation. Generally, we perform our audit procedures to allow us sufficient time to identify significant issues early, thereby allowing more time for analysis and resolution. · Tests of controls As part of our audit, we will review and evaluate certain aspects of the systems of internal control over financial reporting to the extent we consider necessary in accordance with Canadian GAAS. The main objective of our review is to enable us to determine the nature, extent and timing of our audit tests and establish the degree of reliance that we can place on selected controls. An. audit of the financial statements is not designed to determine whether internal controls were adequate for management's purposes or to provide assurance on the design or operational effectiveness of internal control over financial reporting. 5 © Deloitte LLP and affiliated entities The Corporation of the City of Pickering I Appendix 1 -Audit approach The ext_ent to which deficiencies in internal control may be identified through an audit of financial statements is influenced by a variety of factors including our a_ssessment of materiality, our preliminary assessment of the risks of material misstatement, our audit approach, and the nature, timing and extent of the auditing procedures that we conduct. Accordingly, we gain only a limited understanding of controls as a result of the procedures that we conduct during an audit of financial statements. We will inform the Executive Committee and management of any significant deficiencies that are identified in the course of conducting the audit. Substantive audit procedures Our substantive audit procedures consist of a tailored combination of analytical procedures and detailed tests of transactions and balances: These procedures take into account the results of our controls tests and are designed to enable us to obtain reasonable assurance that the financial statements are free from material misstatements. To obtain this assurance, misstatements that we identify while performing substantive auditing procedures will be considered in relation to the financial.statements as a whole. Any misstatements that we identify, other than those that are clearly trivial (the clearly trivial threshold has been set at 5% of materiality), will be reported to management and the Executive Committee. In accordance with Canadian GAAS, we will request that misstatements be corrected. Use of the work of specialists The Deloitte audit is distinguished by the use of industry and functional specialists who are integral to the audit team and carry a deeper understanding of specific topics. These specialists augment the core engagement audit team in understanding business processes and· related risks, and help the audit engagement team apply an appropriate level of professional skepticism to challenge significant management assumptions. For the audit, we will use Deloitte computer assurance specialists to assist us in performing our audit procedures to test the design and implementation of general computer controls. Our specialists are actively involved in the planning and. risk assessment process, and will be available to the audit team and the City management year-round to discuss ongoing risk assessments, industry developments and other matters of interest. · 4. Reporting an.d assessing performance . Perform post-engagement activities We will analyze _the results of the audit procedures performed throughout the year and, prior to rendering our report, we will conclude whether: • The scope of the audits was sufficient to support our opinion, and • The misstatements identified during the audits do not result in the financial statements being materially misstated . . Independence We have developed important safeguards and procedures to protect our independence and objectivity. If, during the year, we identify a breach of independence, we will communicate it to you in writing. Our communication will describe the significance of the breach, including its nature and duration, the action taken or proposed to be taken, and our conclusion as to whether or not the action will satisfactorily address the consequences of the breach and have any impact on our ability to serve as independent auditor to the City. We are independent of the City and we will reconfirm our independence in our final report to the Executive Committee. 6 © Deloitte LLP and affiliated entities 1 1 12 The Corporation of the City of Pickering I Appendix 2 -Communication requirements Appendix 2 -Communication requirements Required communication Reference Audit Service Plan 1. Our responsibilities under Canadian GAAS, including forming and expressing an opinion on the financial statements 2. An overview of th.e overall audit strategy, addressing: a. Timing of the audits b. Significant risks, including fraud risks, and c. Planned responsibilities of other independent public accounting firms or others that perform audit procedures in the audits 3. Significant transactions outside of the normal course of business, including related party transactions Enquiries of those charged with governance CAS1 260.14 CAS 260.15 CAS 260 App. 2, CAS 550.27 4. How those charged with governance exercise oversight over management's process CAS 240.20 for identifying and responding to the risk of fraud and the internal control that management has established to mitigate these risks 5. Any known suspected or alleged fraud affecting the City 6. Whether the City is in compliance with laws and regulations Vear-end communication 7. Fraud or possible fraud identified through the audit process 8. Significant accounting policies, practices, unusual transactions, and our related conclusions 9. Alternative treatments for accounting policies and practices that have been discussed with management during the current audit period 10. Matters related to going concern 11. Management judgments and accounting estimates 12. Significant difficulties, if any, encountered during the audits 13. Material written communications between management and us, including management representation letters CAS 240.21 CAS 250.14 CAS 240.40-.42 CAS 260.16 a. CAS 260.16 a. CAS 570.23 CAS 260.16 a. CAS 260.16 b. CAS 260.16 c. 14. Other matters that are significant to the oversight of the financial reporting process CAS 260.16d. 15. Modifications to our opinions 16. Our views of significant accounting or auditing matters for which management consulted with other accountants and about which we have concerns 17. Significant matters discussed with management CAS 260.A18 CAS 260.A19 CAS 260.A.19 1 CAS: Canadian Auditing Standards -CAS are issued by the Auditing and Assurance Standards Board of CPA Canada 7 © Deloitte LLP and affiliated entities The Corporation of the City of Pickering I Appendix 2 -Communication requirements Required communication Reference 18. Matters involving non-compliance with laws and regulations that come to our CAS 250.23 attention 19. Significant deficiencies in internal control, if any, identified by us in the conduct of CAS 265 the audits of the financial statements 20. Uncorrected misstatements and disclosure items CAS 450.12-13 21. Any significant matters arising during the audits in connection with the City's CAS 550.27 related parties 8 © Deloitte LLP and affiliated entities 13 14 The Corporation of the City of Pickering I Appendix 3 -New and Revised Public Sector Accounting Standards Appendix 3 -New and Revised Public Sector Accounting Standards The following is a summary of certain new Public Sector Accounting Standards, amendments and proposals that will become effective in 2018 and beyond. To review all recent amendments that will impact your organization in the foreseeable future, we invite you to review our revamped Standard-setting Activities Digest. included in our Centre for Financial Reporting (www.cfr.deloitte.ca). Title Description Effective date Section PS 2200 -This Section defines a related party and This Section applies to fiscal years Related party disclosures establishes disclosures required for beginning on or after April 1, 2017. Earlier Section PS 3210 -Assets Section PS 3320 -Contingent assets Section PS 3380 -Contractual rights Section PS 3420 -Inter-entity transactions 9 related party transactions. adoption is permitted. This Section provides guidance for applying the definition of assets and establishes general disclosure standards for assets; but does not include standards for recognition and disclosure of specific types of assets, which are dealt with in other Handbook Sections. This Section defines and establishes disclosure standards on contingent assets; but does not include disclosure standards for specific types of · contingent assets. This Section defines and establishes disclosure standards on contractual rights; but does not include disclosure standards for specific types of contractual rights, and does not include those contractual rights to exchange one asset for another where revenue does not arise. This Section establishes standards on how to account for and report transactions between public sector entities that comprise a government's reporting entity from both a provider and recipient perspective. This Section applies to fiscal .years beginning on or after April 1, 2017. Earlier adoption is permitted. This Section applies to fiscal years beginning on or after April 1, 2017. Earlier adoption is permitted. This Section applies to fiscal years beginning on or after April 1, 2017. Earlier adoption is permitted. This Section applies to fiscal years beginning on or after April 1, 2017. Earlier adoption is permitted. © Deloitte LLP and affiliated entities The Corporation of the City of Pickering I Appendix 3 -New and Revised Public Sector Accounting Standards ¾$ ui,US::t"S-W R & W Ai # SH&&¼¼ 5 9¥ Title Section PS 3430 -Restructuring transactions Section PS 2601 -Foreign currency Section PS 3450 -Financial instruments Section PS 1201 -Financial statement presentation Section PS 3041-Portfolio Investments Section PS 3280 -Asset retirement obligations Section PS 3400 -Revenue 10 Description This Section establishes standards on how to account for and report restructuring transactions by both trimsferors and recipients of assets and/or liabilities, together with related program or operating responsiqilities. This section establishes standards on how to account and report transactions that are denominated in a foreign currency. This Section establishes standards on how to account for and report all types of financial instruments including derivatives. This Section establishes general reporting principles and standards for the disclosure of information in government financial statements. This Section establishes standards on how to account for portfolio investments. This Section establishes standards for reporting legal obligations associated with the retirement of lorig lived tangible capital assets currently in productive use .. This Section establishes standards that apply to revenues of governments and government organizations other than government transfers and tax revenue. This standard addresses recognition, measurement and presentation. &\&PW &Bi-&4 *¥ PE & lfi#k& Effective date This Section applies to restructuring transactions occurring in fiscal years beginning on or after April 1, 2018. Earlier adoption is permitted. This Section is effective for: (i) Government organizations -fiscal years beginning on or after April 1, 2012, and (ii) Governments -fiscal years beginning on or after April 1, 2021. Earlier adoption is permitted. This Section is effective for: (i) Government organizations -fiscal years beginning on or after April 1, 2012, and . (ii) Governments -fiscal years beginning on or after April 1, 2021. Earlier adoption is permitted. This Section is effective for: (i) government organizations for fiscal years beginning on or after April 1, 2012, and (ii) governments for fiscal years beginning on or after April 1, 2021. Earlier adoption is permitted. This Section applies in the period Financial Statement Presentation PS 1201, Foreign Currency Translation PS 2601 and Financial Instruments PS 3450 are adopted. This Section is effective for fiscal years beginning on or after April 1, 2021. Earlier adoption is permitted. This Section is E)ffective for fiscal years beginning on or after April 1, 2022. Earlier adoption is permitted. © Deloitte LLP and affiliated entitles 15 1 6 Deloitte. www.deloitte.ca 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 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. © Deloitte LLP and affiliated entities. ATTACHMENT# L TO REPORT# FI t--! l 1-J ff Deloitte@ August 23, 2018 Private and confidential Mr. Tony Prevedel Chief Administrative Officer The Corporation of the City of Pickering 1 The Esplanade Pickering ON Ll V 6K7 Mr. Stan Karwowski Director, Finance and Treasurer The Corporation of the City of Pickering 1 The Esplanade Pickering ON Ll V 6K7 Deloitte LLP 400 Applewood Crescent Suite 500 Vaughan ON L4K 0C3 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca Re: Confirmation of Change Related to Auditor RepQrting Requirements pear Mr. Prevedel and Mr. Karwowski: This letter is issued to you further to the master.se'~vices··~g.reement ("MSA") between The Corporation of the City of Pickering (the "City") and Deloitte L(P ("De16itte") d,ated October 28, 2016. This letter is subject to the terms of the MSA, the appenJli~s to the1MSA a6p the general business terms that form part of the MSA, all as may be updated or amei¥cfed from time to time. The purpose of this letter is to confirm our mutual understanding of the changes to auditor reporting requirements under Canapl~n Auditing Standprds (CAS)" effective for audits of financial statements for periods ending on or afte"r December 15, 2018 and updates to the general business terms. Ms. Pina Colavecchia will be responsible for the services that we perform for the City. Changes to Auditor Reporting Requirements The new and revised auditor reporting requirements have resulted in a new audit report for the following engagement: • Financial Statement Audits (CAS 700 report) Furthermore, the appendix attached to this confirmation of change letter reflects the new auditor reporting requirements (the "Amended Appendix"). The City and Deloitte herein agree that the Amended Appendix . forms part of the agreement between the parties for the Services and supersedes the following documents as originally attached to the MSA and/or as amended): • Appendix A -Financial statement audit 17 18 The Corporation of the City of Pickering August 23, 2018 Page 2 This confirmation of change letter (including any appendices and documents incorporated by reference) will continue in force for future services provided by us to you unless amended. Yours truly, Chartered Professional Accountants Licensed Public Accountants Enclosure The Corporation of the City of Pickering August 23, 2018 Ppge 3 The services and terms set forth in and incorporated into this letter are acknowledged and apprnved by the Corporation of the City of Pickering: Signature Title Date Signature Title Date 19 20 Appendix A Financial statement audit The Corporation of the City of Pickering August 23, 2018 Our audit services and audit scope The financial statements We may be requested by you from time to time to audit the fina~~~J }li'~ments of the City. These financial statements comprise the statement of financial po · a·s,'l;l ·· · fiscal year end of the City ("Fiscal Year"), the statements of operations, change in ne s and cash flows for the Fiscal Year, and a summary of significant accounting policies and inf~mation. <'-"";;:':•,;;:;~'.' The financial statements subject to audit are those of the City, ... fj,red by management, with oversight from those charged with governance ("Executive Com " Tht'~J:>Jective of our audit is to express an opinion on whether the Financial Statements are fai d, in l!i1(1r,aterial respects, in accordance · with Canadian Public Sector Accounting Standards · an and perform the audit to obtain reasonable assurance that the Financial State ree from material misstatement, whether due to fraud or error. Our audit report On completion of our au'dit pr Appendix A(i). The final for will provide you with an an audit report, we will disc~~~)he reason Our responsibilities Performance of the audit ex , )'tP issue an audit report in the draft form set out in art rfflfy"".differ based on our audit findings in which case, we ~;, ' fore it is issued. If we are unable to issue or decline to issue ith you and the Executive Committee. We will conduct our audit in accordan • with Canadian generally accepted auditing ·standards ("Canadian GAAS"). Those standards require that we comply with e_thical requirements and plan and perform the audit to obtain reasonable assurance about whether the Financial Statements are· free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Financial Statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Because of the inherent limitations of an audit, together with the inherent limitations of internal control, there is an unavoidable risk that some material misstatements may not be detected, even though the audit is properly planned and performed in accordance with Canadian GAAS. Appendix A I Financial statement audit The Corporation of the City of Pickering August 23, 2018 Page 2 Information on internal controls We do not consider internal controls in order to express any opinion to you on their effectiveness. We · consider internal controls relevant to the City's preparation and fair presentation of the Financial Statements in making our risk assessments and in order to design appropriate audit procedures. We will, however, communicate to you in writing concerning any significant deficiencies in internal control relevant to the audit of the Financial Statements that come to our attention during the course of our engagement. Reporting considerations Going concern . If, based on the audit evidence obtained, we conclude that a material uncertainty exists related to events or conditions that may cast significant doubt on the City's ability to continue as a going concern, we are required to draw attention in our audit report to the related disclosures i!J the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our c r111 be based on the audit evidence obtained up to the date of our audit report. Other information Where the City issues other information (for example, a Ff n Glossy annual report), we are required to read the other inf the other information is materially inconsistent with th · the audit or otherwise appears to be materially mis~j&' appropriately based on the revised CAS 720, The AgJflt ¾;_')' and Analysis or a and, in oing so, consfder whether ments or our knowledge obtained in on the results of our procedures sibi I es Relating to Other Information. Communication with the Executive Com The Executive Committee is responsible fo as auditors. We are required to communic may arise during our audit an inancial reporting process and our work 1ve Committee about certain matters that ·cant to their role. These matters may include, but are not limited, to: • the planned scope an • our views about signific policies, accounting estima • any significant matters arising ects qf the City's accounting practices, including accounting . ial statement disclosures; . e audit in connection with the City's related parties; • any events or conditions identified that may cast significant doubt on the City's ability to continue as a going concern, including whether the events or conditions constitute a material uncertainty; • any significant difficulties encountered during the audit; • . any significant matters that were discussed or subject to correspondence with management; • written representations we are requesting; • where CAS 720 applies, any uncorrected material inconsistencies between the other information and the Financial Statements or our knowledge obtained in the audit, and any uncorrected material misstatements of the other information we identify from reading the financial and non-financial information included in the City's annual report containing or accompanying the Financial Statements and our audit report; and • any other matters that in our professional judgment are significant to the oversight of the financial reporting process. 21 22 Appendix A I Financial statement audit The Corporation of the City of Pickering August 23, 2018 Page 3 Fraud and illegal acts An audit designed and executed in accordance with Canadian GAAS may not detect fraud or illegal _acts. However, it is possible that actual and potential fraud or illegal acts may be discovered during the course of our audit. We will communicate actual or potential fraud or illegal acts identified during the audit to, in our sole judgement, the appropriate level of management and/or the Executive Committee depending on the type and significance of the issue. Your responsibilities Financial statements and internal control The audit of the Financial Statements does not relieve ma_nagement or the Executive Committee of their responsibilities. You are responsible for the preparation and fair presentation ial Statements in accordance with PSAS. . \;~"O~~ ,:-f+.:}:;/· -You are also responsible for establishing internal control nece!l~!3fy for th .e_7?~"1eff:_0!;d!J,, Statements that are free from material misstatement, whetli'er·ai;.te to frau rror. You must determine -+~ what internal control is required, including how it is desi d, implemented and maintained. You will s('.'2~ advise us of any deficiencies identified ancj any chan rnal i::OI'lit,ol over financial reporting. <,Yij/)' Access to information and personnel You are responsible for providing us with acce the Financial Statements and any additional You will also provide unrestricted access tJ( need to obtain evidence for our Prevention of fraud and. r Yo·u are responsible for d~}~oJng and implJo'!'~:mting programs and controls to prevent and detect fraud, -.>•:?c, g,:,,, illegal acts and error. You wllblnform us ab ut all kndwn or suspected fraud, illegal acts or errors affecting the City. You will further inforril:lfs,pf an egations offraud, illegal acts or potential errors received in communications (written or oral)ff'' oyees, former employees or any other parties external to the City. Compliance with laws and regulations You are responsible for identifying and ensuring that the City complies with the laws and regulations applicable to its activities. You will inform us of any known or possible violations of these laws or regulations. Related parties You will identify the City's related parties and whether the City entered into any transactions with th~se related parties in the time period under audit. Subsequent events You will advise us of whether any events have occurred between· the date of the balance sheet and the date our audit report is released, that may.affect the Financial Statements. Correction of material errors You are responsible for adjusting the Financial Statements to correct material misstatements identified during the course of our audit engagement. Appendix A I Financial statement audit The Corporation of the City of Pickering August 23, 2018 Page 4 Representation letter As part of our engagement procedures, you will provide written confirmation of representations made to us in connection with the audit. Disclosure of report We are engaged solely by the City to perform an audit engagement the purpose of which is to provide an opinion as to whether the Financial Statements are free from material misstatement. You will not, without obtaining our prior written consent: • publish or reproduce our report in any document that contains the Financial Statements; • · make reference to our firm in a document which contains oth w,ation in addition to the Financial Statements; or • place our report on an electronic site. In order for us to consider granting such written consent, y request as well as provide any draft document which is propose consent is provided by us, you are solely responsible f report and the financial statements on which we re Other information You acknowledge your responsibility for the o other information prior to the date of our is expected to be available after t te o information when available, a responsibilities under CAS applicable, and to provide us with the sible. To the extent the other information s, "Deloitte" shall mean Deloitte LLP and Deloitte Touche firms and affiliates. Independence matters as a resu/ f restrictions on providing certain services In connection with our engagement, Deloitte, management, and the Executive Committee will assume certain roles and responsibilities in an effort to assist Deloitte in maintaining independence and ensuring compliance with applicable independence rules. It is your responsibility to have policies and procedures in place to confirm that the City (together with its subsidiaries and other related entities) does not engage us or accept services from us that may impair our independence under applicable professional rules. All potential services are to be discussed with Ms. Pina Colavecchia. In connection with the foregoing, the City agrees to furnish to Deloitte and keep Deloitte updated with respect to a corporate tree that identifies the legal names of the City's affiliates (e.g., parents, subsidiaries, investors or investees, variable interest entities or special purpose entities (as applicable)), together with the ownership relationship among such entities. Deloitte intends to capture this information in systems that may be accessed and used by its affiliates in order to assist Deloitte. in meeting its independence obligations. Deloitte will not be requesting nor accepting any personal information for this purpose. Deloitte agrees to discuss any concerns raised regarding privacy or confidentiality with the City. 23 24 Appendix A I Financial statement audit The Corporation of the City of Pickering August 23, 2018 Page 5 Independence matters relating to hiring In order to assist us in maintaining independence, you will also notify us qf any substantive employment conversations that have occurred with current or former Deloitte personnel. Executive Committee's responsibilities _ The Executive Committee is responsible for the oversight of the financial reporting process, including management's preparation of the Financial Statements and monitoring of the City's internal controls related to financial reporting and oversight ·of our work. Appendix A(i) Expected form of report The Corporation of the City of Pickering August 23, 2018 We w.ill provide you with our report on the Fimincial Statements, which is expected to be in the following form. However, the final form will reflect the results of our audit. If there are any changes to the expected form of report in future years, we will provide you with an updat .. 0rm before it is issued. Independent Auditor's Re To the Members of Council of The Corporation of the City of Pickering Opinion We have audited the consolidated financial st "City"), which comprise the consolidated st consolidated statements of operations, ch ended, and notes to the financial ent ( collectively referred to as the In our opinion, the acco position of the City as at assets, and its cash flows for standards. Basis for Opinion ration of the City of Pickering (the osition as at December 31, 2018, and the assets and cash flows for the year then ding a summary of significant accounting policies· "). . We conducted our audit in accordance with Canadian generally accepted auditing standards ("Canadian GAAS"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the City in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the City's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting. 25 26 Appendix A(i) I Expec::ted form of report The Corporation of the City of Pickering August 23, 2018 Page 2 Those charged with governance are responsible for overseeing the City's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian GAAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with.Canadian GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • • • Identify and assess the risks of material misstatement fraud or error, design and perform audit procedures re evidence that is sufficient and appropriate to provide a a material misstatement resulting from fraud is higher t involve collusion, forgery, intentional omissions, mist; control. Obtain an understanding of internal control rele, that are appropriate in the circumstances, . not effectiveness of the City's internal control Evaluate the appropriateness of accoun estimates and related discl ~JCl./'J~•.;iMs"' b statements, whether due to and obtain audit . . it in order to design audit procedures • se of expressing an opinion on the and the reasonableness of accounting • Conclude on the appro · use of the going concern basis of accounting and, based on the audit e · material uncertainty exists related to events or conditions that may ca on the City's ability to continue as a going concern. If we conclude that a material u ··:~~ainty e . s, we are required to draw attention in our auditor's report to the related disclosures in thl!financta; atements or, if such disclosures are inadequate, to modify our •:.,.J?SitL, L;:°'?Y#z"t::Pv opinion. Our conclusions are ba~~1J::pn the audit evidence obtained up to the date of our auditor's report. However, future events ofi~~nditions may cause the City to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we.identify during our audit. (To be signed Deloitte LLP) Chartered Professional Accountants Licensed Public Accountants Toronto, Ontario Date of the auditor's report --Cl~of--P](KER]NG Report to Executive Committee Repori: Number: AS 01-18 Date: September 11, 2018 ·From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Animal Sheltering Agreement for the Town of Whitchurch-Stouffville -Five-year term effective January 1, 2019 -File: S-3O10-001-18 Recommendation: 1. .That Council authorize Animal Services to provide sheltering services for The Corporation of the Town of Whitchurch-Stouffville for a five-year term effective January 1, 2019; 2. That Council approve the draft Agreement attached hereto for the provision of sheltering services to Whitchurch-Stouffville, and that the Mayor and City Clerk be authorized to execute the Agreement on behalf of the City, subjecno minor revisions agreeable to the Director, Corporate Services & City Solicitor; 3. That all sheltering service fees to be paid by ,the Town of Whitchurch-Stouffville be placed in the Animal Services Operating Revenue Account; and 4. That the appropriate officials of the City of Pickering be given the authority to give effect thereto. Executive Summary: This past Spring, staff from the Town of Whitchurch-Stouffville contacted Animal Services to determine if the City would be interested in entering into a five-year agreement to shelter animals for Whitchurch-Stouffville. · The Town of Whitchurch-Stouffville currently houses animals in Vaughan, however they advise that the Vaughan sheltering facility is inconveniently located arid does not meet all of their needs. Pickering's Animal Shelter is closer and will better meet the needs of Whitchurch-Stouffville staff and residents. Pickering's level of service to Pickering residents will not be GOmpromised by this arrangement. Financial Implications: The draft Agreement (Attachment No. 1) outlines the following shelter fees that Whitchurch-Stouffville would pay to the City on a yearly basis. 27 28 AS 01-18 Subject: September 11, 2018 Animal Sheltering Agreement for the Town of Whitchurch-Stouffville Page 2 Shelter Fees Total per year Service Costs ($500/month) $6,000 The costs below are only received if an animal enters the animal shelter. Per Animal: $15,000 $200/dog $100/cat Based on 100 animals (50 dogs and 50 cats) Daily Fee (up to the 6th day) $12,000 $20/day ' (Based on 100 animals staying for the stray period of 6 days) Quarantined Animal $4,000 $40/day (based on 10 animals) Based on this fee structure, City staff estimate that the City will receive approxlm·ately $30,000 in sheltering fees each year. Discussion: Since 2012, Animal Services has been operating Pickering's Municipal Animal Shelter from leased property located at 1688 Highway 7.· Over the last 6 years, the shelter has brought in over 2,000 animals and adopted out over 1,300 animals. Statistics provided by Whitchurch-Stouffville show that in 2017, Whitchurch-Stouffville sheltered 100 animals. Animal Services staff have evaluated Pickering's current shelter'ing trends and are confident that the Shelter can comfortably accommodate these additional 100 animals. Once these animals enter into the City's facility, they will become the property of the City of Pickering and will follow our current animal sheltering policies and procedures. Staff at Whitchurch-Stouffville have been advised that our current site is temporary and thatthe City is planning to build a permanent shelter in Pickering. Whitchurch-Stouffville sees this partnership as a long:..term arrangement, and have already expressed a keen interest in moving to our new facility when the time comes. Based on the information provided in this report, it is recommended that the City proceed to enter into a five-year agreement to shelter animals for Whitchurch-Stouffville. September 11, 2018 AS01-18 Subject: Animal Sheltering Agreement for the Town of Whitchurch-Stouffville Page 3 Attachments: 1. Draft Animal Shelter Agreement with The Town of Whitchurch-Stouffville Prepared By: cl--0cVfUl2t) U\ Lindsey Narraway J Supervisor, Animal Services LN:KT/ks Reco of Pie ended for the consideration City Council '' Approved/Endorsed By_: 11 kJ "'bev 'J -{A'c.-,'f"'sv"'--'' Kimberly Thompson Manager, By-law Enforcement Services te Services & City Solicitor 29 30 ATTACHMENT# / TO REPORT# ,t:\ $ 0 I - / )S J .of.··~ This Agreement is made as of December 1, 2018 Between: The Corporation of the City of Pickering ("Pickering") · -and -The Corporation of the Town of Whitchurch-Stouffville ("Wh itch u rch-Stouffville") Whereas Whitchurch-Stouffville requires an animal shelter facility to feed, sheJter and care for animals from Whitchurch-Stouffville and Pickering has agreed to provide the use of their facility based upon the terms and condition$ set out in this Agreement; And Whereas Council for Whitchurch-Stouffville authorized the execution of this Agreement by way of Resolution on _______ _ Now Therefore Pickering and Whitchurch-Stouffville agree as follows: Definitions 1. In this Agreement, (a) (b) (c) "Service Costs" include the feed, care, cleaning and facility operation including staff and maintenance costs required in conjunction with the · Shelter; and "Shelter" means the facility operated as The Pickering Animal Shelter on the property municipally' known as 1688 Highway 7, Brougham, ON LOH 1AO, or such replacement animal shelter facility as designated by Pickering in accordance with Section 19. · "Whitchurch-Stouffville Animals" means the stray dogs, cats and small animals (such as domestic rabbits, guinea pigs, birds, reptiles, etc.) delivered by Whitchurch-Stouffville staff to the Shelter; Sheltering Services 2. The Shelter shall feed, shelter and care for all Whitchurch-Stouffville Animals in accordance with all applicable legislation. 3. Stray small animals may be impounded at the Shelter on a case by case basis at the discretion of Shelter staff. 4. Healthy stray cats and kittens may be impounded at the Shelter on a case by case basis at the discretion of Shelter staff. Animal Shelter Agreement Page2 5. Once Whitchurch-Stouffville Animals are impounded by the Shelter, the Shelter shall be responsible for the health and wellbeing of the Whitchurch-Stouffville Animals, including any costs incurred for veterinary services required. 6. Redemption, surrenders, adoption and euthanasia for all Whitchurch-Stouffville Animals shall be in accordance with policies and procedures established by the Shelter. Upon execution of this Agreement, and as revised or amended during the term of this Agreement, the Shelter agrees to provide copies of all applicable policies and procedures to Whitchurch-Stouffville. 7. Section 5 does not apply to Whitchurch-Stouffville Animals being held by the Shelter pursuant to the provisions of the Health Protection and Promotion Act, R.S.O. 1990 c. H.7 ("HPPA") and any regulations passed under it, and the Dog Owners' Liability Act, R.S.O. 1990, c. D.16 ("DOLA") and any regulations passed under it. Whitchurch-Stouffville shall b·e responsible for an additional daily impound fee of $20.00 per animal and any veterinary or euthanasia costs associated with Whitchurch-Stouffville Animals being held by the Shelter pursuant to HPPA and DOLA. 8. Whitchurch-Stouffville Animals being held by the Shelter pursuant to HPPA and DOLA shall be quarantined for a period of ten days upon an order issued by the Regional Municipality of York. 9. Fees for all services provided by the Shelter to the public (e.g. adoption, impound fees) save qnd except for licensing fees, shall be in accordance with Pickering's approved fee· schedule as described in By-law 6811/07, as amended. The Shelter sha·11 be responsible for the collection of any fees for services. 10. The Shelter shall retain all fees with regards to redemption, surrender and -· adoption for all Whitchurch-Stouffville Animals. 11. The Shelter agrees to require all owners claiming a dog from the Shelter to purchase a Whitchurch-Stouffville pet licence as per Whitchurch-Stouffville By'" law 2017-057-RE and fee structure. 12. The Shelter will remit all fees collected for the sale of Whitchurch-Stouffville pet licences in accordance with Section 11 and all licence information associated therewith to Whitchurch-Stouffville staff on a quarterly basis, or as otherwise agreed to in writing by the Parties. Shelter Fees 1.3. Whitchurch-Stouffville shall pay to Pickering the Shelter Fees for the year 2019 as set out in this Section, however, Whitchurch-Stouffville acknowledges and agrees that the Shelter Fees set out in this Section reflect the Shelter Fees for the year 2019 only and that Pickering will reasonably determine the Shelter Fees for each successive year of the Term, and any extension term; but shall not be . 31 32 Animal Shelter Agreement Page 3 permitted to increase the Shelter Fees by more than 5% in any successive year. Pickering shall provide not less than ninety (90) days prior written notice to Whitchurch-Stouffville of any change to the Shelter Fees for the next subsequent year of this Agreement and any extension thereof, failing which no change to the Shelter Fees shall be permitted for the given year. Shelter Fees 2019 costs to be as follows: (a) (b) (c) Service Costs: Per Animal Cost Daily Fee (up to the 6th day) Dog: $500/month $200/impound Cat: $.100/impoulid Dog/Cat $20/day Quarantined Animal $20/day (+ daily fee) (plus applicable taxes). · 14. Whitchurch-Stouffville shall remit monthly -Shelter Fees to Pickering on the first day of each and every month throughout the Term, and any extension term. · 15. Notwithstanding the foregoing, in the event Pickering has designated a replacement animal shelter facility pursuant to Section 19, the Shelter Fees for the designated replacement animal shelter facility shall be determined in accordance with Section 19. · Term 16. The term of this Agreement shall commence on January 1, 2019 and end on December 31, 2024 (the "Term"). 17. The parties may mutually agree to extend the Term for __________ [NTD: Extension Term TBD]. Either party shall provide at least 90 days written notice to the other party, given prior to the expiry of the Tetm, of its request to extend the Term. The other party shall respond in writing within 30 days advising whether it will agree to extend the Term. Any extension term will be subject to the same terms and conditions as herein contained. Failing such mutual agreement to extend the Term, this Agreement shall expire as set out herein. 18. Either party may, in its discretion, terminate this Agreement.without cause prior to the expiry of the Term, or any extension term, by providing the other party at least 120 days prior written notice of such termination. Upon termination in Animal Shelter Agreement Page4 accordance with this provision, neither party shall owe any further obligation to the _other, and Whitchurch-Stouffville shall not be liable for any costs or losses incurred by Pickering or the Shelter and/or any third party arising from or in connection with the cancellation or termination of this Agreement. Replacement Shelter Facility 19. Pickering reserves the right, in its discretion, to designate a replacement animal shelter facility by providing Whitchurch-Stouffville at least 120 days prior written notice of such designation. Within 60 days upon receipt of notice, the parties shall mutually agree on the amount of the Shelter Fees to be paid by Whitchurch-Stouffville for the designated replacement animal shelter facility for the remainder of the Term, and any extension term. Notwithstanding the foregoing, the Shelter Fees shall not be less than the Shelter Fe~s payable immediately prior to notice of Pickering's designation of a replacement animal shelter facility. If, within 60 . days of receipt of notice, the parties have not agreed to the Shelter Fees and/or Whitchurch-Stouffville does not agree to relocate to the designated replacement animal shelter facility, this Agreement shall terminate 60 days thereafter and neither party shall have any liability.to the other as a consequence of such termination. • Hours of Operation 20. The Shelter shall provide or exceed the following hours of operation to the public ("regular facility operating hours"): Monday -Friday Saturday Sunday 10:00 am -4:00 pm 10:00 am -2:00 pm Closed 21. Whitchurch-Stouffville staff shall have full access to the Shelter facilities 24 hours per day, seven days per week. · 22. Whitchurch-Stouffville staff shall be responsible for impounding and following pre-established procedures implemented by Pickering for all animals entering the Shelter outside regular facility operating hours. Indemnity 23. . Each of Pickering and Whitchurch-Stouffville shall indemnify and save harmless the other from and against any and all actions, losses, damages, claims, costs and expenses (including solicitors' fees on a s_olicitor and client basis) to which the party.being indemnified shall or may become liable by reason of any breach, violation or non-performance by the party so indemnifying of any covenant, term or provision of this Agreement or by reason of any damage, injury or death occasioned to or suffered by any person or persons including Pickering or Whitchurch-Stouffville, as the case may be, or any property by reason of any 33 34 Animal Shelter Agreement · Page 5 wrongful act, neglect or default on the part of the party so indemnifying or any of those persons for whom it is in law responsible. Insurance. ' 24. Whitchurch-Stouffville, at its sole cost and expense, shall purchase and keep in force and effect throughout the Term, and any extension term, comprehensive · general liability insurance, identifying Pickering as an additional insured, pertaining to Whitchurch-Stouffville's liability to others in respect of injury, death or damage to property occurring upon, in or about the Shelter, with coverage for any one occurrence of claim of not less than $2,000,000.00. Such insurance policy shall not be cancelled unless prior notice by registered letter has been given to Pickering by the insurer 30 days in advance of the expiry date. 25. Whitchurch-Stouffville shall provide to Pickering an insurance certificate, in a form satisfactory to Pickering, completed by Whitchurch-Stouffville's insurance provider confirming such coverage. 26. The provision of the insurance policy required by this Section shall not relieve Whitchurch-Stouffville from liability for claims not covered by the insurance. policy or which exceed its limits, if any, for which Whitchurch-Stouffville may be held responsible. · 27. Whitchurch-Stouffville shall not do, omit to do, or permit to be done or omitted to be done upon, in or about the Shelter anything that may contravene or be prohibited by any of Pickering's insurance policies in force from time to time covering or relevant to any part of the Shelter or which would prevent Pickering from procuring its policies with companies acceptable to Pickering._ If the conduct of Whitchurch-Stouffville upon, in or about the Shelter or any acts or omissions of Whitchurch-Stouffville upon, in or about the Shelter directly causes or results in any increase in premiums for any of Pickering's insurance policies, Whitchurch-Stouffville shall pay such increase to Pickering. Records 28. In accordance with the Animals for Research Act, R.R.O., 1990 Reg. 23(10), the Shelter shall be responsible for maintaining accurate records on behalf of Whitchurch-Stouffville, as directed. · 29. Upon request by Whitchurch-Stouffville, the Shelter will provide a detailed activity report with respect to the number of animals impounded, length of time at the shelter and a breakdown of the final disposition of animals. Default 30. If at any time Whitchurch-Stouffville is in default in the performance of any of its obligations under this Agreement and such default continues for 15 days after the receipt by Whitchurch-Stouffville of notice from Pickering setting out the Animal Shelter Agreement Page 6 particulars of such default, Pickering shall have the right to terminate this Agreement. General 31. Whitchurch-Stouffville will be permitted to display a window decal on a front window of the Shelter, as determined by Pickering, for the purpose of advising the public of Whitchurch-Stouffville's use of the Pickering Shelter. The design of such decal will be coordinated jointly by both parties. · 32. Pickering shall be responsible for all facility and pro'perty maintenance, including cleaning, snow removal, grass cutting, and any required repairs or maintenance to the Shelter. 33. No amendment to thi~ Agreement shall be effective unless it is in writing and signed by both parties. 34. (1) Any notice to Pickering under this Agreement shall be in writing and shall be delivered to the following address: Pickering Civic Complex Attention: City Clerk One The Esplanade Pickering, Ontario L 1V 6K7 and any notice to Whitchurch-Stouffville shall be in writing and shall be delivered to the following address: Attention: Manager, Municipal Law Enforcement 111 Sandiford Drive Stouffville, ON L4A OZS . (2) Notice shall be sufficiently given if delivered in person or sent by registered mail or sent by facsimile transmission during normal business hours on a business day. 35 36 Animal Shelter Agreement Page 7 35. This Agreement shall enure to the benefit of and be binding upon the parties and their respective successors (including any successor by reason of amalgamation or statutory arrangement) and permitted assigns. In Witness Whereof Pickering and Whitchurch-Stouffville have signed this Agreement. The Corporation of the City Of · Pickering Per: -------------David Ryan, Mayor Per: -------------Debbie Shields, City Clerk The Corporation of the Town of Whitch u rch-Stouffvi I le Per: ---"------------ Report to Executive Committee Report Number: BYL 01-18 Date: September 11, 2018 -From: Subject: Paul Bigioni Director, Corporate Services & City Solicitor 10th Annual Toys for Tickets and Food for Fines 2018 --File: L-2220-001-18 Recommendation: 1. That parking tickets issued between December 1 through 21, 2018 be eligible for the Toys for Tickets/Food for Fines program; 2. That the Toys for Tickets/Food for Fines program be implemented from December 1 through December 21, 2018; and 3. That the appropriate City of Pickering officials be authorized to take the necessary.actions as indicated in this report. Executive Summary: · The Toys for Tickets/Food for Fines program accepts toys or groceries in lieu of payment for parking tickets. Toy or food donations must be dropped off to City Hall, and a receipt must be presented to confirm that the value of the donation equals or exceeds thefine. Tickets for parking in an Accessible Parking Space are not eligible for the program. This program promotes community engagement and supports families in need. Financial Implications: The lost revenue associated with the Toys for Tickets/Food for Fines program in 2017 was $1,151.00. A similar amount of lost revenue is anticipated for 2018. Discussion: The first Toys for Tickets/Food for Fines program was offered by the City of Pickering in 2009. Since that time, it has been a tremendous success, supporting families in need and promoting the spirit of the holiday season. The program has received extensive media coverage at both the national and local level, as well as through social media. Participation from the community is always generous and enthusiastic. Last year's Toys For Tickets/Food for Fines program brought in approximately $1,500.00 in donations, as compared to the $1,151.00 in lost fine revenue: This year's program will continue to benefit families in need by_ sharing donations with the Durham Regional Police Service Food and Toy Drive, and the Pickering Fire Services Food and Toy Drive. · 37 38 BYL 01-18 September 11, 2018 Subject: 10th Annual Toys for Tickets and Food for Fines 2018 Page 2 Kimberly Thompson Manager, Municipal Law Enforcement Services Services & City Solicitor KT:kt Recommended for the consideration ofPicke;;u Tony Prevedel, P.Eng. • . Chief Administrative Officer CORP0227-07/01 revised -Cdpof-p](KERJNG From: Marisa Carpino Director, Community Services ·subject: Pickering Sports Medicine & Wellness Centre -Lease Amending Agreement -File: A-1440-001 Recommendation: Report to Executive Committee Report Number: CS 27-18 Date: September 11, 2018 1. That the Mayor and the City Clerk be authorized to execute the Lease Amending Agreement •With Angela Dye Physiotherapy Professional Corporation carrying on business as Pickering Sports Medicine & Wellness Centre as set out in Attachment 1 to this report, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor .. 2. That the appropriate officials of the City of Pickering be authorized to take· necessary actions as indicated in this report. Executive Summary: The City of Pickering has an existing Lease Agreement with Angela Dye Physiotherapy Professional Corporation carrying on business as Pickering Sports Medicine & Wellness Centre (the "Wellness Centre") for the period of January 1, 2018 to December 31, 2022. The Wellness Centre consists of one room located on the second floor of the Pickering Recreation Complex totaling 1,420 square feet. In recent years, Angela Dye has expressed a need for additional space in order to expand the existing Wellness Centre and meet the demands of her growing clientele. At the time, the rooms adjacent to the Wellness Centre were operated by the City for recreation/leisure programs and private rentals; the Arts Studio was dedicated for municipal arts programming to the west; and meeting room number 1 was utilized for City run recreation/leisure programs, particularly camps, and private rentals to the east. However, with the recent consoUdation of arts programming into one single "Arts Studio" located on the first floor of the Pickering Recreation Complex (formerly known as the Pottery Studio), the dedicated Arts Studio on the second floor of the Pickering Recreation Complex has now become available for other municipal recreation/leisure programs and private rentals. This new flex space, adjacent to the Wellness Centre, has enabled staff to consider Angela Dye's request to expand. To that end, staff reviewed the annual utilization rate of meeting rooms number 1, 2 and 3 located on the second floor of the Pickering Recreation Complex and have determined that the number of bookings for meeting room number 1 can be reasonably accommodated in meeting room number 2 and/or 3, or in the new flex space formerly occupied by the dedicated Arts Studio. This reallocation of permits would result in no disptaced customers, no cancelled programs and no lost 39 40 cs 27-18 Subject: Pickering Sports Medicine & Wellness Centre September 11, 2018 Page 2 rentals or revenues. In fact, by expanding the Wellness Centre into meeting room number 1 by approximately 673 square feet, the City would realize additional annual revenues. · As such, the Community Services Department recommends that the Lease Amending Agreement as set out in Attachment 1 be initiated with Angela Dye Physiotherapy Professional Corporation carrying on business as the Pickering Sports Medicine & Wellness Centre for premises totaling approximately 2,093 square feet located on the second floor of the Pickering Recreation Complex ending December 31, 2022. Financial Implications: The annual tenant base rent payable to the City of Pickering will increase from $28;700 plus HST (for current premises of approximately 1,420 square feet) to $42,906.50 plus HST (for expanded premises of approximately 2,093 square feet). The cost to construGt the new demising wall and all leasehold improvements are the responsibility of the Wellness Centre. All leasehold improvements must comply with the Ontario Building Code and the City shall be provided with a copy with all permit applications for the works. Discussion: . For nearly two decades, the Wellness Centre has leased space on the second floor of the Pickering Recreation Complex to operate a sports medicine out-patient clinic with the services of physiotherapy, massage therapy and a visiting Orthopedic Surgeon. The business is owned by Angela Dye, Registered Physiotherapist and services are implemented by health care professionals. The Wellness Centre brings in approximately 15,000 annual patient visits in a room of approximately 1,400 square feet. Since it opened in. 2001, the Wellness Centre has evolved from a small "one physiotherapist clinic" to a multi-disciplinary clinic with an expanded staff including four Registered Physiotherapists, two Registered Kinesiologists·, two Registered Massage Therapists and two Physiotherapy Assistant staff. The majority of the clientele at the Wellness Centre is comprised of people who have had.surgery and/or recovering from injuries/accidents, often·seniors over the age of 65. Physiotherapists on staff are designated authorizers with the Ministry of Health and Long Term Care (MOHL TC) for the prescription of mobility aids including walkers, scooters and wheelchairs. The Wellness Centre also provides physiotherapy services to Canadian soldiers though their relationship with Veteran Affairs Canada and they are a registered physiotherapy provider with the Federal Interim Health-Program that services both refugees and individuals who are seeking asylum in Canada. In 2014, the Wellness Centre received an OHIP billing licence which has substantially increased the number of annual patient visits. It was a very competitive process with only 70 clinics selected across Ontario, among approximately 700 applicants. Especially since receiving the new OHIP billing licence, the Wellness Centre treats vulnerable seniors and people who need these services . but would otherwise not be able to afford them. The increased clientele and staff has resulted in limited space for treatments areas, document storage (a requirement for registered therapists of Ontario), office space and waiting area. cs 27-18 Subject: Pickering Sports Medicine & Wellness Centre September 11, 2018 Page 3 As a result, Angela Dye has requested additional leased space from the City in order to expand her business and meet the needs of her clients. This additional space will enable the Wellness Centre to offer programs and services that are currently not available in the facility and are very limited in Durham Region: 1. Multiple Spinal Disorders/Pathologies: The addition of a traction bed to provide more effective treatment of the spinal conditions that commonly affect an aging population and are contributory to deteriorating function. . 2. Pelvic Floor Rehabilitation for both men and women: The Wellness Center has the clinical physiotherapy expertise to provide treatment of pelvic floor conditions associated with aging and other medical conditions. · 3. Neurological Rehabilitation: The addition of parallel bars and other related rehabilitation equipment to provide rehabilitation services for patients with Multiple Sclerosis, Parkinson's · Disease as well as Stroke who have limited outpatient options. · 4. Geriatric Rehabilitation: Slow stream rehabilitation programs are limited in the community but essential for older residents who have had surgeries or extended hospital stays. Specialty programs that focus on spatial awareness, proprioception, balance and vestibular rehabilitation would be possible with expanded space. With the recent consolidation of arts programming into one single "Arts Studio" on the first floor of the Pickering Recreation Complex, the former Arts Studio on the second floor of the Pickering Recreation Complex has now become available for City recreation/leisure programs and private rentals. This new flex space, strategically located adjacent to the Wellness Centre, has allowed staff.to consider Angela Dye's request to expand. To that end, staff reviewed the utilization rate of meeting rooms number 1, 2, and 3 located on the second floor of the Pickering Recreation Complex and have determined that the number of annual bookings for meeting rooni number 1 can be reasonably accommodated in meeting room number · 2 or in the new flex space afforded by the formerly dedicated Arts Studio (now vacated). This reallocation of permits would result in no displaced customers, no cancelled programs and no lost rentals or revenues. In fact; by expanding the office suite of the Wellness Centre by an additional 673 square feet into meeting room number 1, the City would realize additional annual revenues through the amending lease agreement. The Wellness Centre offers services that are compatible with the City's mandate to encourage the development of balanced and healthy lifestyles contributing to the well-being of both mind and body. They also promote the City's personal training program to support their patients' ongoing health and rehabilitation. The Wellness Centre has operated in a professional manner that has satisfied the City. 41 42 cs 27-18 Subject: Pickering Sports Medicine & Wellness Centre September 11, 2018 Page 4 As such, the Community SeNices Department recommends that the attached Lease Amending Agreement be initiated with Angela Dye Physiotherapy Professional Corporation carrying on · business as the Pickering Sports Medicine & Wellness Centre for premises of approximately 2,0.93 square feet located on the second floor of the Pickering Recreation Complex ending December 31, 2022. Attachments: 1. Lease Amending Agreement Prepared/Approved/Endorsed By: Marisa Carpino, MA Director, Community SeNices :me Recommended for the consideration of Pickerin9lp;;J; ~. t, 2/XB Tony Prevedel, P.Eng: Chief Administrative Officer ATTACHMENT#_LTOREfORT#~ ·~ ·J6 Lease Amending Agreement This Lease Amending Agreement is made as of the_ day of ______ , 2018. Between: Angela Dye Physiotherapy Professional Corporation carrying on business as Pickering Sports Medicine & Wellness Centre (the "Tenant") -and -The Corporation of the City of Pickering (the "Landlord") WHEREAS pursuant to a lease dated January 11, 2018 between the Landlord and the Tenant, a copy of which is attached hereto as Schedule "A" (the "Lease"), the Landlord leased to the Tenant t_hose premises being one room containing approxim~tely 1,400 square feet located in the Pickering Recreation Complex located at 1867 Valley Farm Road, Pickering, Ontario; AND WHEREAS the Landlord and the Tenant hav~ agreed to amend the Lease as hereinafter set forth; . NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the sum of Two Dollars ($2.00) now paid by each party to the other, and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereto agree as follows: 1. The foregoing recitals are true in substance and fact and are incorporated herein. · 2. The Lease is hereby amended as follows: (a) The•first paragraph of the Lease-is deleted in its entirety and replaced with the following: "Now therefore this agreement witnesseth that, in consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of the Tenant to be paid, observed and performed, the Landlord hereby leases to the Tenant during the term of this agreement (hereinafter referred to as the "Lease") one suite containing approximately 2,093 square feet located in the Pickering Recreation Complex located at 1867 43 44 Valley Farm Road, Pickering, Ontario to operate. a sports medicine & wellness centre (hereinafter referred to as the "Premises")." (b) The "Definitions" Section is amended by deleting the definition of "Premises" and replacing it with the following: "Premises" means one suite as set out in Schedule "A" containing approximately 2,093 square feet located at the Pickering Recreation Complex to operate· a sport_s medicine & wellness centre at 1867 Valley Farm Road, in the City of Pickering, Regional Municipality of Durham:" (c) Section 2.1 is amended by adding the following: 'This rental rate shall apply until October 1, 2018. From and after October 1, 2018, the Tenant shall pay base rent to the Landlord in the amount of $42,906.50 per annum ($3,575.54 per month) plus applicable H.S.T. for the remainder of the Term of the Lease." (d) Schedule "A" of the Lease shall be deleted and replaced with the "Premises Floor Plan" as set forth in Schedule "B" to this Lease Amending Agreement. 3. The Landlord shall form one new opening, no larger than 4 feet wide, in the wall between t_he existing leased space, identified as Physic Suite on the Premises Floor Plan, and the additional lease space, identified as Meeting Room 1 on the Premises Floor Plan, at a location to be agreed upon by the Tenant and the Landlord. The Landlord shall construct a new demising wall between the additional lease space, identified as Meeting Room 1 on the Premises Floor Plan, and Meeting Room 2, as identified on the Premises Floor Plan. The demising wall will be constructed of metal studs and drywall on both sides and . will be finished with paint. Should the Tenant require electrical outlets in the demising wall, the Landlord shall install electrical outlets, subject to the Electrical Safety Code, O.Reg. 164/99 and electrical panel capacity (collectively, the "Landlord's Work"). The Landlord shall commence the Landlord's Work upon written confirmation of the location of the wall opening as described above and details of any electrical requirements in the demising wall. The Landlord shall use commercially reasonable efforts to complete the Landlord's Work within 6 weeks following commencement thereof. The Tenant shall remain in occupancy of the Premises during the completion of the Landlord's Work and such occupancy shall be non-exclusive, and will be shared with the Landlord and the Landlord's contractors, sub-contractors, servants, agents and employees. During such period of shared occupancy, the parties shall co-operate with one another so as to ensure each party is able to complete its respective obligations but the Tenant hereby acknowledges and agrees that, in the event of a conflict,· the completion and scheduling of the Landlord's Work shall take precedence. Notwithstanding anything contained in this Lease Amending Agreement to the 2 contrary, the Landlord's occupancy of the Premises as provided for herein shall not be deemed to be a re-entry of the Premises and shall not constitute a breach by the Landlord of its obligation for quiet enjoyment under the Lease, as amended hereby. The Tenant shall be responsible, at its sole cost and expense, for the relocation and/or the removal of any or all of its fixtures, furniture and equipment from or within the Premises in order to accommodate the Landlord's Work and the performance thereof. 4. The Landlord will submit to the Tenant an invoice for all costs incurred by the Landlord arising from the Landlord's Work and the'Tenant shall pay the invoice submitted by the Landlord within 15 days of receipt of said invoice. 5. Save and except as expressly provided in Section 3 above, the Landlord shall have no obligation to construct any leasehold improvements in the Premises, or give any other inducements of any kind in connection with the Tenant's continued occupancy thereof. 6. The Landlord reserves th_e right, during the construction of any leasehold improvements, to enter the Premises for the purpose of inspection of the work. 7. The parties agree that this Lease Amending Agreement shall be conditional upon the Landlord receiving an executed personal acknowledgement by Angela Dye, guarantor under the Guarantee of the Lease, prepared in the form attached hereto as Schedule "C". 8. Except as hereby amended, the parties confirm that the terms, covenants and conditions of the Lease remain unchanged and in full force and effect. 9. It is understood and agreed that all terms and expressions when used in this Lease Amending Agreement, unless a contrary intention is expressed herein, have the same meaning as they have in the Lease. · 10. This Lease Amending Agreement, including any Schedules attached hereto, constitutes the entire agreement between the parties and may not be amended or modified in any respect except by written instrument signed by the parties hereto. 11. This Lease Amending Agreement may be executed in several counterparts, and/or by facsimile or email transmission, each of which shall constitute an original and all of which, taken together, shall constitute one and the same instrument. 12. This Lease Amending Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario. 3 45 46 13. If any covenant, obligation or provision contained in this Lease Amending Agreement, or the application thereof to any person or circumstance, shall, to the any extent, be invalid or unenforceable, the remainder of this Lease Amending Agreement or the application of such covenant, obligation or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and each covenant, obligation or provision of this Lease Amending Agreement shall be $eparately valid and enforceable to the fullest extent permitted by law. 14. This Lease Amending Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns, as the case may be. In witness whereof the parties have duly executed this Lease Amending Agreement as of the date first written above. Angela Dye Physiotherapy Professional Corporation carrying on business as Pickering Sports Medicine & Wellness Centre Name: Title: I have the authority to bind the Corporation. The Corporation of the City of Pickering David Ryan, Mayor Debbie Shields, City Clerk 4 Schedule "A" Lease See attached. 5 47 48 This Le~se made in duplicate this C,-fl-day of ,4?~~? Between: , 2013. . Angela Dye Physiotherapy Professional Corporation carrying on business as Pickering ~ports Medicine & Wellness Centre (the '.'Ten ant") -and-The Corporation of the City of Pickering (the "Landlord") Now therefore this agreement witnesseth that, in consideration of the rents, covenants and agreements hereinafter reserved and contained on the_part of the Tenant to be paid, observed and performed, the Landlord hereby Leases to the Tenant during the term of this agreement (hereinafter referred to as the "Lease") one room containing approximately 1,400 square feet located in the Pickering Recreation Complex located at 1867 Valley Farm Road, Pickering, Ontario to operate a wellness centre (hereinafter referred to as the "Premises"). · · 1.0 Term. The term of this Lease (hereinafter referred to as the "ierm") shall commence on the 1st day of January1 2013 and shall end on the 31st day of December, 2017, provided that the Tenant shall have the option thereafter of one additional five year Term on the provision that at least two (2) months prior written notice of the renewal period is given by the Tenant to the Landlord of the Tenant's intent to renew the Lease and provided further that the Tenant shall have been a Tenant in good standing throughout the entire · Term of the Lease deTermined solely by the Landlord and provided further there has . · been no breach of any provisions of the Lease at any time by the Tenant Each successive renewal shall be based on the same Terms and conditions as set out heretn, save and except for the amoun~ of rent payabl~. Rent payable for the renewal.Term shall be as mutually agreed upon by both the Landlord and the Tenant at least one month prior to the commencement of the renewal Term. Failing such mutual agreement, this Lease shall be at an end and the Tenant shall vacate the Premises upon expiration of the original Term. 1.1 Upon the expiration of-the Term, or if the Landlord shall become entitled to Terminate and shall declare this Lease to be.Terminated pursuant to any provisions hereof, the Tenant shall-surrender to the Landlord possession of the Premises and all of the fixtures and improvements erected thereon (all of which the Tenant acknowledges to be the property of the Landlord without any claim by or compensation to the Tenant), all the lights of the Tenant under this. Lease shall Terminate (but the Tenant shall notwithstanding such Termination, be liable to 1 the Landlord for any loss or damage suffered by the Landlord by reason of any default of the Tenant). 1.2 No early Termination of possession of the Premises ~hall release the Tenant from its obligations under the Terms herein unles·s such Termination is consented to by the Landlord in writing. 2.0 Base Rent . . 2.-1 The Tenant shall· pay.base rent to the Landlord in the amount of $25,200.00 per annum ($2,100.00 per month) plus applicable H.S.T. for the first year of the Term of the L~ase. 2.2 For each successive year of.the Term, the annual rent shall increase by an amount equal to any-increase in the Consumer Price Index for Ontario as established by Statistics Canada for the period between October and November of the previous year of the Term. 2.3 · Rent shall be payable monthly. Prior to the commencement of each· year of the · Term, the Tenant shall provide to the Landlord, twelve(12) post-dated cheques, ·dat~d the first day of each and every month of the ensuing year, made payable to The Corporation of the City of Pickering: · 3.0 Taxes 3.1 The Tenant covenants that it shall pay all taxes, if applicable, license fees and all other taxes or grants paid in lieu thereof or in addition thereto against or attributable to all Leasehold improvements, equipment and facilities and the Premises and the operation of the Tenant's business thereon. 3.2 In the event of the failure of the Temmt to make any such payments called for in this paragraph directly to the relevant authority, the Landlord may make any such payment and any amounts so paid by the Landlord shall be payable by the Tenant to the Landlord forthwith upon demand and shall be considered by the Landlord and the Tenant to be rent for the purposes of this Lease. 4.0 Payment of Rent 4.1 The Tenant covenants that at the.times and in the manner· provided in this Lease, it will pay in lawful money of Canada to the Landlord, at the address of the Landlord set out herein or at such other place as the Landlord may'designate from time to time, the rent hereby reserved and all other amounts payable by the Tenant pursuant to the Terms of this Lease (all of which other amounts it is hereby agreed between the parties are payable as additional rent and recoverable by the Landlord from the Tenant as rent including H.S.T. and all 2 49 50 applicable taxes and the facility usage fee), without any deduction or set-off whatsoever, or any abatement except as expressly provided under this· Lease. . ' 4.2 If the Tenant fails to pay, when same is due and payable, any rent and all other amounts payable by _the Tenant pursuant to the herein Lease, such. unpaid· amounts shall·bear interest from the due date thereof to the date of payment at a rate per annum which is two (2) percentage points in excess of the mini.mum lending rate to prime commercial borrowers current at the due date charged by any Canadian chartered bank designated by the Landlord from time to time, subject to annual compounding. 5.0 Use 5.1 The Tenant shall use the Premises· only for the purpose of a wellness clinic, which scope of services will include an orthopaedic surgeon, physiotherapy, myofacial release, comprehensive cardiac rehab progr~m, a kinesiologist, occupational therapy,· social work, chiropractic treatment, holistic nutritional counselling, massage therapy, homeopathy, acupuncture, an orthotist and bracing specialist and the sale of wellness-oriented products. 5.2 The Tenant covenants that it will not provide any other services, other than those identified in 5.1 above, without first obtaining the prior written consent of the Landlord, which consent may nofbe unreasonably withheld. 5.3 The Tenant covenants that it will provide, at its sole expense, visible signage in its reception area throughout t.he Term of this· Lease that identifies to its patients the services it provides and stating that the services are independent of the Landlord. The signage shall be approved by the Landlord prior to being displayed. · . . ... ..... . .. ···-···" ........ ,. ....... ··-···-··••·· ....................... : ...... ,. ..... . .................... ,........... . ............... . 5.4 The Tenant shall provide to the Landlord a copy of a standardized written waiver which shall state that the scope of services being provided by the Tenant are independent of The Corporation of the City of Pickering. Such waiver shall be provided to the Landlord for approval prior to the commencement of the Tenant's business. being conducted on the Premises. The Tenant shall further provide such waiver to the Tenant's clients and patients prior to providing or delivering any services. 5.5 Services provided by the Tenant shall be supervised by a duly licensed health professional and registered to provide wellness services in the Province of Ontario. Each employee and contracted service provider of the Tenant shall be duly licensed to carry out any service to be provided by such employee and contracted service provider as may be provided by any statute or regulation of any leglslative authority. 3 6.0 Sale of Products 6.1 The Tenant covenants that it shall only sell product lines that are wellness-oriented. Such products include the following: • Braces • cervical pillows • lumbar back support • tubing-therapeutic • orthotics • cervical collars • seating products • cervical hot packs • tens machines --portable • bottled water 16.5 oz. 6.2. The Tenant covenants that it will not provide for resale any product other than those identified· in 6.1· above, without first obtaining the prior written consent of the Landlord, whi,ch consent may not be unreasonably withheld. ·6.3 The Landlord reserves the right to restrict the sale of any items which the Landlord, in its sole·discretion, considers distasteful and/or not in the best interest of the general public. 7.0 Hours of Operation 7.1 The Tenant covenants to operate its business only on those days when the Pickering Recreation Complex is open to the public. The Tenant shall operate within the same operating hoµrs .as the Pickering Recreation Complex's oper~ting schedules, which operating schedules shall be determined solely by the Landlord from time to time. 7.2 . The Tenant acknowledges that the Landlord reserves the right to alter the operating schedules a_nd further acknowledges that the Landlord will not be responsible for any losses or damages including any lost revenues and/or additional expenses incurred by the Tenant due to operating schedule changes and/or Pickering Recreation Complex closures, for any reason whatsoever. 7.3 ·1n addition to scheduled closings, the Picke_ring Recreation Complex shall be closed on the following holidays: New Year's Eve New Year's Day Family Day Good Friday Easter Sunday 4 51 52 Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Christmas Eve Christmas Day Boxing Day and any other holiday declared by the.Landlord. Utilities/Telephone Service 8.0 8.1 The Landlord shall supply heat, hydro, water and air-conditioning to the Premises at its sole expense. 8.2 The Landlord reserves the right to prohibit the Tenant from installing or using any equipment that requires increased voltage, which may result in additional costs to the Landlord. · 8.3 9.0 The installation, removal and daily supply of telephone service shall be at the Tenant's sole expense. · Leasehold Improvements The Tenant is responsible for construction, painting, decorating, maintenance, replacement, repair and insurance of the Tenant's Leasehold improvements,. equipment, fixtures and facilities on the Premises and shall abide by the Terms as provided for in paragraph no. 11 herein. · ........ ··············-"·•·" .......... . 1 0;O Entry to the Premises . . . -. . 10.1 · The Landlord shall provide the Tenant ·with keys to the Premises. The Tenant shall not, without prior written consent of the Landlord, change the lock on the Premises or place additional locks upon the door of the Premises and shall not pennit any duplicate key to be made. 10.2 The Tenant acknowledges that the Landlord will keep in its possession k_eys that would prov_ide access to the Premises by the Landlord in the event it becomes necessary to enter the Premises during a time when the Tenant's business is not operating. 10.3 The Tenant covenants and agrees that upon the Landlord becoming entitled to re-enter the Premises under any of the provisions of this Lease, the Landlord in addition to all other rights shall have the right to enter the Premises as the agent of the Tenant either by .force or otherwise, without being liable for any 5 prosecution therefore and to relet the Premises as the agent of the Tenant, and to receive the rent therefore and, as the agent of the Tenant, to take possession of any furniture or other property on the Premises and to sell same atpublic or private sale without notice and to apply the proceeds of such sale and any rent derived from reletting the Premises upon account for the rent and additional rent and facility usage fees under this Lease and the Tenant shall be liable to the Landlord for the deficiency, if any. 11.0 Alterations & Improvements 11. 1 The Tenant covenants not to· make or erect in or to the Premises any . installations, alterations, additions or partitions without submitting drawings and specifications to the Landlord and without obtaining the Landlord's prior written consent in each instance, which consent shall not be unreasonably withheld. the Tenant must further obtain the Landlord's prior written consent to any change or changes in isuch drawings and specifications submitted as aforesaid. such work may be performed by contractors engaged directly by the T enarit provided a written contract is approved in writing by the Landlord and subject to all reasonable conditions which the Landlord may impose; without limiting the generality of the foregoing, any work performed by or for the Tenant shall be performed by competent workers whose labour union affiliations are not incompatible with those 0f any workers who may be employed by the Landlord, its contractors or subcontractors' the Tenant shall pay, when due, the costs of all such work and of all materials, labour and services involved therein provided that any such payments may be withheld pursuant to the provisions of Construction Lien Act (Ontario). The workmen performing works on the Premises shall provide satisfactory evidence of insurance to the Landlord prior to commencing any · works on the Premises. 11.2 The contractor shall obey all federal, provincial and municipal laws, acts, ordinances, regul_ations, orders-in-council and by-laws which could in any way pertain to the work outlined in the contract or to the employees of the Tenant. Without lirniting the generality of the foregoing, the contractor shall satisfy all applicable statutory requirements imposed by the Occupational Health and Safety Act and regulations made thereunder. · 11.3 The Tenant covenants that it will not suffer or permit any mechanics or other liens for work, labour, service or materials ordered by it or the cost of which it may be in any way. obligated to pay to attach to the Premises and that, whenever and so often as any such liens shall attach or claims therefore shall be filed, the Tenant shall, within twenty (20) days after the Tenant has notice of the claim for lien, procure the discharge thereof by payment or by giving security or in such either manner as may be required or permitted by law. 11.4 The T enanf acknowledges that all renovations and constructions to the Premises become part of the Premises and shall be deemed to be the property of ttie 6 53 54 Landlord. Renovations anci constructions are not to be dismantled or destroyed at either the end or Termination of the Lease. 11.5 All alterations, renovations and new construction must be approved by the Landlord and must be completed under the authority of a building permit issued by the Landlord. All relateci permit fees and costs including the provision of any diagrams, architectural plans and architectural fees are at the expense of the Tenant. 12.0 Maintenance 12.1 The Tenant covenants and agrees to keep and maintain during the Term and to · deliver up at the end of the Term (or such earlier or later Termination of this · Lease as is provided for herein), the Premises in a state of good maintenance, cleanliness and repair. The Tenant covenants to permit representatives of the Landlord on site at any time for the purpose of inspection .and to determine compliancewith'this provision. 12.2 The Tenant will covenant that it will be responsible for maintenance of its own property and equipment. 12.3 The Landlord reserves the right to close sections of the Premises, or the whole area of th!3 Premises, as required for maintenance from time to time. The Tenant shall'have no right to claim for any losses or damages to the Tenant arising from such closures by the Landlord. . . · 12.4 The Landlord reserves the right to enter and view the state of maintenance and repair of the Premises. The Tenant agrees to repair according to notice in writing any deficiencies, and in the event the·ienant neglects to make said repairs and carry ou_t the necessary maintenance with five (5) days of such notice by the --·-·-[analord, 'fhe Landlord may enter the Premises and make such repairs and carry out such maintenance at its option and at the expense of the Tenant, which sum must be paid by the Tenant within ten (10) days after receiving notice in writing from the Landlord of the cbsts incurred by the Landlord. In the event the Tenant neglects to pay such costs as set out in writing, such expense may be set off agalnst the security deposit held by the Landlord. 12.5 The Landlord shall give the Tenant 24 hours notice with respect to the inspection and maintenance of the Premises (except in an emergency, in which case, the Landlord shall give such notice, if any, as is practicable). 13.0 Garbage Removal The Tenant shall be responsible, at its own expense, for the daily removal of its garbage from the Premises to a location designated by the Landlord, with the exception of any 7 medical wastes, in which case the Tenant shall be responsible for both the safe removal and disposal of such medical wastes from the Premises. · 14;0 Signs 14.1 The Tenant shall not display any sign, picture, advertisement, notice or lettering on the inside or outside of the Pickering Recreation Complex facility without the prior written consent of the Landlord, which consent may not be unreasonably withheld. ·. 14.2 The parties agree that the Landlord will provide an area in the main lobby of the · Pickering Recreation Complex for the Tenant to display a sign at the Tenant's · sole expense in accordance with section 14.1 above, advising the patrons of the Pickering Recreation Complex of the Tenant's operations and its location within the Pickering Recreation Complex, noting thereon that the Tenant's operation is a service supplied independent of the Landlord. · . . ' ~ 14.3 The Landlord reserves the right to have the Tenant immediately remove, upon written notice, any sign, picture, advertisement, notice or lettering on the inside of the Premises, which the Landlord at its sole discretion considers inappropriate or offensive, or in contravention of this Lease or any other agreement to which the Landlord may be bound. · 14.4 The Tenant covenants that any' additional advertising within the Pickering Recreation Complex shall be·subjectto the parties hereto entering. into an advertising agreement, which agreement will be subject to additional costs to the Ten ant for such a service. · 15.0 Rules and Regulations 15.1 During the Term of this Lease, the Tenant agrees to comply with the various rules and regulatiqns, policies and procedures, as amended from time to time, put in place by the Landlord, including but not limited to the Landlord's the Harassment Policy. 15.2 The parties agree that the Landlord shall b~ entitled from time to time, to · establish reasonable rules and regulations with respect to the use of the Premises, hours of operation arid common areas used by the Tenant, its. employees and all persons visiting or doing .business with it including rules relating to the parking of vehicles in connection with the Te11ant's business. The Tenant, its employees and all persons visiting or doing business with it agree to comply with all such rules and regulations and to fully co-operate in avoiding obstruction and/or conflict w:ith .the operation and services of the Pickering Recreation Complex and third parties. The Tenant, its employees and all persons visiting or doing business with it agree to alter or modify their use ofthe Pickering 8 55 56 Recreation Complex and common areas when so requested by the Landlord from time to time. · 16.0 Indemnity of Tenant · The Tenant covenants to indemnify the Landlord against any and all claims, actions, damages and liability (including, without limiting the generality of the foregoing, all claims for personal injury, deat~ and/or property damage) and also damages arising from any breach of this Lease by the Tenant or from any act or omission of the Tenant or those for whom the Tenant is at law responsible in or around the Premises and against all costs incurred in connection with any such claim, except as provided in section 17 below. · 17.0 Indemnity of Landlord The Landlord shall not be liable for any loss or damage to any property belonging to the Tenant or to any other persons or for any injury to any person while such person or property is on the Premises unless such loss, damage or injury is caused directly by the negligence of the Landlord, or those for whom the Landlord is at law responsible. 18.0 Insurance , 18.1 Prior to occupying the Premises, the Tenant shall, at its own expense, shall provide: (a) comprehensive general public liability insurance, identifying The Corporation of the City of Pickering as an additional insured, including coverage for personal injury, contractual liability, Tenant's legal liability, non-owned autonyobile liability, death and property damage, on an occurrence basis with respect to the business carried on at the Premises and the Tenant's use and occupancy of;the Premises, with coverage for any one occurrence or claim of not less than $5,6bbJJ6b, which insurance shall protect the Landlord in respect of claims by the Tenant as if the Landlord was separately•insured; (b) insurance in respect of fire and other perils covering the Leasehold improvements, trade fixtures, furniture and equipment in the Premises for not less than the full replacement cost thereof; (c) malpractice insurance in the amoµnt of not less than $2,000,000; (d) a certificate of insurance coverage in a form satisfactory to the Landlord, prior to the Tenant taking possession of the Premises, which insurance coverage shall be kept in full force and effect throughout the Term of the Lease and any renewal(s) thereof. 9 18.2 The Tenant covenants with the Landlord that the Tenant, in its use and occupation of the Premises, will not do or omit or permit to be done or omitted anything which shall cause any insurance premium of the Landlord to be increased, and if any insurance premium shall be so increased, the Tenant shall pay to the Landlord forthwith .upon demand the amount of such increase. if notice of cancellation or lapse shall be given respecting any insurance policy of the Landlord or if any insurance policy shall be cancelled or refused to be renewed by an insurer by reason of the use or occupation of the Premises or any part thereof, the Tenant shall forthwith remedy or rectify such use or occupation upon being requested to do so in writing by the· Landlord and if the Tenant shall fail to do so the Landlord may, at its option, Terminate this Lease forthwith by notice in. writing and the Tenant shall immediately surrender possession of the Premises to the Landlord and thereupon rent and all other amounts for which the Tenant is liable under this Lease shall be apportioned and paid in full to the date of surrender; provided that the Tenant shall have the right to replace such cancelled insurance at any time prior to the Landlord's notice of Termination. If the Premises are at any time destroyed or damaged as a result of fire, the elements, accident or other casualty, not caused by the Tenant, rendering the Premises untenantable and, if in the opinion of the Landlord the Premises cannot be rebuilt or repaired within sixty (60) days of the damage, the Landlord and the Tenant may mutually agree to Terminate this agreement and thereupon the Tenant will . pay all applicable rent due and additional fees owing to the Landlord, which rent and fees will be apportioned and paid to the date of the damage. 18.3 If the Premises are· at any time destroyed or damaged as a result of fire, the elements, accident or other casualty, not caused by the Tenant, rendering the Premises untenantableand, if the opinion of the Landlord, the Premises can be rebuilt or repaired within sixty (60) days of the damage, the Landlord shall commence to repair or rebuild the Premises to the extent only as the Premises existed prior to the date of this Lease (not including the Tenant's improvements) and only to the extent of the insurance proceeds actually received by the · · Landlord. 19.0 Deliveries The Landlord has the right to r~strict the hours of deliveries to the Tenant at its sole discretion. · 20.0 Disclaimer The Tenant agrees to provide each patient with a written notice that the Tenant's services are being provided independent of The Corporation of the City of Pickering and to obtain a written acknowledgment from the patient/client releasing The Corporation of the City of Pickering from any claims arising from the Tenant's services. 10 57 58 21.0 Complex Fitness Room/Cardio Annex and Pool 21.1 The Landlord covenants to allow the Tenant's patients to use the fitness room, cardio annex, members' changeroom whirlpool, pool and pool area, in the Pickering Recreation Complex only (collectively, the "Fitness Facilities"-), pursuant to sections 21.2, 21.3, 21.4 and 21.5 below.· 21.2 The Tenant covenants that its patients will u~e the Fitness Facilities only during· their wellness clinic appointments and only under the direct supervision of a uniformed wellness clinic therapist/healthcare provider. The Tenant acknowledges and agrees that a group of patients shall be limited to three (3) and all patients must be in visual contact with the wellness clinic therapi~t/healthcare pr.avider. 21.3 Usage by the Te11ant's patients for treatment purposes shall not adversely affect the L;:mdlord's members' use of any of the Fitness Facilities and as· such the Landlord reserves the right to limit the number of wellness clinic patients using the Fitness Facilities at_any one time. 21.4 Usage by the Tenant's patients of the Fitness Facilities shall be determined and monitored .by the Landlord. Usage by the Tenant shall be restricted by the Landlord providing to th~ Tenant access privileges that will be used by the · Tenant each time one of the Tenant's patfents/clients uses any of the above-noted facilities. Usage ~ees are covered by monthly rent. 22.0 Notice 22.1 The Landlord has the right, notwithstanding section 1 herein, to cancel this Lease for any reason by giving the Tenant six (6) months written notice of its intention to cancel. the Landlord shall not be liable for costs or damages of any kind caused to the Tenant by such cancellation. · · · · · · 22.2 Wherever notice is permitted or required to be given hereunder by either party hereto, it must be given in writing and is sufficiently given if served personally on an officer of the party to whom notice is being given, delivered by facsimile to the telephone number below with confirmation .of receipt or if mailed by registered mail postage prepaid addressed to the Tenant at: Pickering Sports Medicine & Wellness Centre 1867 Valley Farm Road Pickering, ON. LIV 3Y7 Attention: Angela Dye Fax: 905.839.8806 and to the Landlord at: 11 The Corporation of the. City of Pickering · Civic Complex, One the Esplanade Pickering, ON L 1V 6K7 Attention: City Clerk Fax: 905.420.9685 or to such other address as either pi:irty may designate by notice given from time to time .in accordance with this paragraph. 22.3 Any notice given personally sh~II be conclusively deemed to have been given and received on the date of service. 22.4 Any notice mailed as aforesaid shall be conclusively deemed to have been given and received on the third day following the date on which it is mailed as aforesaid provided that if there is a disruption or threatened disruption in the postal service in the postal area through which such notice must be sent, notice must be given personcdly or by means of printed electronic or printed telephonic . communications. 23.0. Default It is hereby expressly agreed that if and wheoever the rent or any additional rent or fees hereby reserved ,or any part thereof shall not be paid on the day appointed for payment thereof, whether lawfully-demanded or not, or in case of breach or non-observance or non-performance of any of ~he covenants, agreements, provisos,.condit.ions or rules and regulations on the part of the Tenant to be kept, observed or performed after two (2) · business days after written notice of default has been given by the Landlord to the Tenant1 or in case the Premises shall be vacated or remain unoccupied for five (5) days or in case the Term shall be taken in execution or attachment for any cause whatever, then and in every such case, it shall be lawful for the Landlord thereafter to enter into and upon the Premises or any part thereof in the name of the whole and the same to have again, repossess and enjoy as of its former estate, anything in this Lease · contained to the contrary notwithstanding. 24.0 Bankruptcy In the event that the Premises shall be used by any person other than the Tenant or for any other purpose than that for which the same were let without the prior written consent of the Landlord or in the case the Term or any of the goods and chattels of the Tenant shall be at any time seized in execution or attachment by any creditor of the Tenant or the Tenant,shall make any assignment for the benefit of creditors ot any bulk sale or become bankrupt or insolvent or take the benefit of any act now or hereafter in force for bankrupt or ins~lvent debtors, or, if the Tenant is a corporation and any order 12 59 60 shall be mad~ for the winding-up of the Tenant, or other Terminatkm of the corporate existence of the Tenant, then in any such case this Lease shall, at the option of the Landlord, cease and desisf and the Term shall immediately become forfeited and void and the Landlord may re-enter and take possession of the Premises as though the Tenant or other occupant or_occupants of the Premises was or were holding over after the expiration of the Term without any right whatever. 25.0 Distress The Tenant waives and renounces the benefit of any present or future statute taking away or limiting the Landlord's right of distress, and covenants and agrees that notwithstanding any such statute none of the goods and chattels of the Tenant on the Premises at any time during the Term or any renewal thereof shat.I be exempt from levy by distress for rent in arrears. 26.0 No Waiver No condoning, excusing or overlooking by the Landlord or the Tenant of any default, breach or non-observance by the other at any time or times in respect of any covenant, proviso or condition herein contained shall operate as a waive of the Landlord's or the Tenant's rights hereunder in respect of any continuing or subsequent default, breach or non-observance, or so as to defeat or affect in any way the rights of the Landlord or the Tenant herein in respect of any such continuing or subsequent default or breach and no waiver shall be inferred from or implied by anyth,ing done or omitted by the Landlord or the Tenant save only express waiver in writing. all rights and remedies of the Landlord and the Tenant in this Lease contained shall be cumulative and not alternative. 27. Compliance with Laws 27 .1 The Tenant covenants to comply, at its own expense, with all present and future provisioiisoflaw concern1ffffthePremisesincruarr19;wm,ouTlffnmn9-tne··········· generality of the f9regoing· all laws, ordinances, requirements; order, directives, permits, rules and regulations of all governmental authorities. · 27.2 The Tenant acknowledges that it has taken all reasonable steps to satisfy itself that the proposed use of the Premises complies with applicable laws and regulations. The Tenant shall n'ot hold the Landlord responsible for any losses or damages incurred by the Tenant should it be determined that the proposed use is not permitted under the applicable laws and regulations. · 28.0 Assignment This Lease and poss~ssion of the Premises shall not be assigned, sublet or otherwise transferred in whole or in part by the Tenant to any other party without first obtaining · written consent of the Landlord which consent may be unreasonably withheld. I 13 29.0. Governing Law This Lease shall be govemed and construed in accordance with the laws of the Province of Ontario. 30.0 No Registration of Notice The Tenant covenants that it will n9t register this Lease or any notice thereof against the title to the Premises. 31.0 Guarantee The parties agree that this Lease agreement shall be conditional upon the Landlord receiving an executed personal guarantee by Angela Dye prepared in· the form attached hereto as Schedule A · · 32.0 Entire Agreement The parties acknowledge that this Lease sets forth the entire agreement between them with respect to the Premises and that there are no promises, representations or · undertakings other than as set out herein. Any offer to Lease or agreement to Lease entered into by the Landlord and Tenant prior· to the executio'n of this Lease shall be deemed to have been merged _and extinguished in this Lease. This Lease shall not be· am~nded or cancelled except by agreement in writing executed by all parties hereto. 33.0 Inspection The Landlord or any employee or agent Qf the Landlord shall have the right during business .hours of the Tenant or at any time during an emergency as determined by the Landlprd, to enter the Premises for any of the following pur,poses: (a) to examine the state of maintenance, repair and decoration of the Premises and . the equipment and fixtu_res therein; and · (b) to show the Premises to prospective Tenants during the last three (3) months of the Term. 34.0 Year End Statements The Tenant shall within sixty (60) days after the end of each year Term of the herein Lease agreement, provide the City with a financial statement for that previous Term of the total operating expenses and gross reven·ue of its business operation. , 14 61 62 35.0 . Severability Should any provision or provisions of this Lease be illegal or not enforceable1 it or they -shall be considered separate and severable from the Lease and its remaining provisions shall remain in force and be binding upon.the parties hereto as though the said provision or provisions had never been included. · 36.0 Enurement This Lease·shall enure to the benefit of1 and be binding upon, the parties hereto and . their respective representatives, successors or assigns except as herein otherwise expres~ly provided. 37.0 Guarantee The Landlord has entered into this Lease in reliance upon the Guarantee attached hereto as Schedule "A". In Witness whereof the parties have hereunto affixed their respective corporate seals under the hands of their proper officers duly authorized in that behalf. Angela Dye Physiotherapy Professional Corporation carrying on business as Pickering Sports Medicine & Wellness Centre per: A SJ a' ~ Name: · iq'~d:_ ~ cl"--.. . . . -Title: -20-~2;:fi;('.--r~_:e;-o-·. -··~···•-. I have the authority to bind the Corporation Name: David Ryan Title: Mayor f Pickering per: _ ___,,D=-=--· ~h~hA,.,.,.· 2~\~k=-----Name: Debbie Shields Title: City Cle:rk 15 Landlord: Tenant: Leased Premises: . Lease Dated: . Guarantor: Address, of Guarantor: Schedule "A" Guarantee The Corporation of the City of Pickerin·g Pickering Sports Medicine & Wellness Centre Pickering Recreation Complex as of January 1, 2013 Angela Dye 61 Beaufort Road Toronto, ON M4E 1 M8 1. In consideration of the sum of one dollar ($1.00) now paid by the Landlord to the guarantor and other valuable consideration (the receipt of which is hereby acknowledged), the guarantor covenants with the Landlord that the Tenant shall duly perform and observe each and every covenant, proviso, condition and agreement in the Lease on the part of the Tenant to be performed and observed, including the payment of rent and all other amounts agreed to be paid or payable under the Lease on the days and at the times and in the manner therein specified and that if any default be made by the Tenant, whether in payment of rent or other amounts from time to time falling due thereunder as and when they become due and payable or in the performance or observance of any of the covenants, provisos,· conditions or agreements which under the terms of the Lease are to be performed or observed by the Tenant, the guarantor shall forthwith pay to the Landlord on demand such rent and other amounts in respect of which such default shall have occurred and all damages resulting from the non-observance or non-performance of any such covenants, provisos, conditions or agreements. 2. The guarantor covenants with the Landlord that the guarantor is bound with the Tenant for the fulfillment of all obligations of the Tenant under the Lease. In the enforcement of its rights thereunder, the Landlord may proceed against the guarantor as if the guarant~r was named as a Tenant in the Lease. · 3. The guarantor hereby waives any right to. require the Landlord. to proceed against the Tenant or to proceed against or to exhaust any security held from the Tenant or tc.> pursue any other remedy whatsoever which may be avail.able to the Landlord, before proceeding against the guarantor. 4. None of the following, or any combination thereof, shall release, discharge or in any way change or reduce the obligations of the guarantor under this Guarantee: 16 63 (a) neglect or forbearance of the Landlord in endeavoring to obtain payment of the rent or the amounts required to be paid under the Lease, as and when due; (b) delay by Landlord ih enforcing performance or observance of the covenants, provisos, conditions or agreements to be performed or observed by the Tenant under the Lease; · · (c) any extension of time given by the Landlord to the Tenant, or any other act or· failure. to act of or by the Landlord; (d) the Landlord permitting or consentfng to any assignment or encumbering of the Lease by the Tenant or any subletting by the Tenant; (e) the bankruptcy or insolvency of the Tenant; (f) the dissolution of the Tenant; (g) the disclaimer of the Lease pursuant to the provisions of any statute. 5. Capitalized terms. used but not defined herein shall have the meaning ascribed thereto in the Lease. · Signed, Sealed and Delivered ) In the presence of: ) '*~,Jqy{1afo_~ l Ange8•;~ ~ 0a~ .. -----------------------------•------.. -----........ -----------·-----~--~ .... ---) 17 64 Schedule "B" Premises Floor Plan See attached. R 65 66 OPEN TO BELOW -LEASEAREA SCHEDULE A PICKERING RECREATION COMPLEX 1867 VALLEY.FARM ROAD PARTIAL SECOND FLOOR PLAN NORTH NOTTO SCALE ~ Schedule "C" Acknowledgement of Guarantor I, Angela Dye, hereby acknowledge that my Guarantee of the Lease (Schedule "B" to the original Lease) remains in full force and effect and that my obligations under the Guarantee extend to and include the additional obligations of the Tenant imposed by the Lease Amending Agreement. I further acknowledge that the Lease Amending Agreement does not release, discharge or in any way change or reduce my obligations as guarantor under the Guarantee of the Lease, and that I am bound with the Tenant for the fulfilment of all obligations of the Tenant under the Lease and the Lease Amending Agreement. Signed, Sealed and Delivered In the presence of: ) ) ) ) ) ) Angela Dye 7 67 68 --Cdpof--Pl(KER]NG From: Marisa Carpino Director, Community Services Subject: Security Services -Contract Extehsion -File: A-1440-001 Recommendation: Report to Executive Committee Report Number: CS 28-18 Date: September 11, 2018 1. That the MayC?r and the City Clerk be authorized to extend the contract with Best Guard Security Inc., as set out in Attachment 1 to this report, for a term ending April 30, 2019, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor. 2. That the appropriate officials of the City of Pickering be authorized to take necessary actions as indicated in this report. Executive Summary: The City of Pickering has an existing Purchase Order (180267) with Best Guard Security Inc. for security services at the Pickering Civic Complex and the Pickering Recreation Complex. The initial contract was awarded to this vendor for a three year term from May 1, 2014toApril 30, 2017, as perQ-7-2014. As per Council Resolution #343/17, staff was to investigate the feasibility of a municipal Security Risk Assessment and bring forward the appropriate costs during the 2018 budget process. In order to achieve continuity of security services during this time, the existing security services purchase order with Best Guard Security Inc. was extended for a term ending September 30, 2018. The contract extension was executed in accordance with the Purchasing Policy, Item 09.08, a single source purchase over $30,000 and up to $125,000 is subject to the approval of the Manager, Director, Treasurer and the CAO. Since the annual cost of security services with Best Guard Security Inc. is approximately $87,000 plus HST, the cost associated with the 17 month contract extension (from April 30, 2017 to September 30, 2018) was $123,250 plus HST and fell within these limits. In June 2018, staff secured Assurance Protection Group Inc. to complete the City's Security Risk. Assessment as per RFP-9-2018. The results of this assessment will guide future decisions related to the security of City facilities. Although this work has begun, it is not expected to be completed until the end of 2018. As such, a further extension of the City's existing security services contract is required for a seven month period ending on April 30, 2019 in order to maintain continuity of services during this assessment phase. The value of the contract extension now exceeds $125,000 and requires the approval of Council. cs 28-18 Subject: Security Services September 11, 2018 Page 2 Once the assessment is completed and recommendations are considered, staff will include the appropriate costs in the 2019 Current Budget for Council's consideration in February 2019. Financial Implications: The total cost resulting from the 24 month contract extension will now increase to $174,000 plus HST exceeding the threshold for staff approval under the Purchasing -Policy, Item 09.08. The vendor has agreed to honour their existing hourly rat~s during the extended term, subject any legislative increases to the minimum wage. Sufficient funds to cover 2018 costs are included in the Council approved 2018 Current Budget. Funds to cover 2019 costs (from January 1, 2019 to April 30, 2019) will be reflected in the 2019 Current Budget for Council's consideration. Discussion: The City of Pickering has an existing Purchase Order (180267) with Best Guard Security Inc. for security services at the Pickering Civic Complex and the Pickering Recreation Complex. The initial contract was ·awarded to this vendor for a three year term from May 1, 2014 to April 30, 2017, as per Q-7-2014. As per Council Resolution #343/17, staff investigated the feasibility of a municipal Security Risk Assessment and brought forward the appropriate costs during the 2018 budget process. In order to achieve continuity of security services during this time, the existing security services purchase order with Best Guard Security Inc. was extended on February 27, 2017 with a revised scope of work to include the Pickering Recreation Complex for the term ending April 30, 2018. It was once again extended on April 23, 2018 for a term ending September 30, 2018 to maintain continuity of services and so that the contract would expire in line with the existing security services contract between the Pickering Public Library and their unique vendor. These contract extensions were executed in accordance with the Purchasing Policy, Item 09.08, a single source purchase over $30,000 and up to $125,000 is subject to the approval of the Manager, Director, Treasurer and the CAO. The total estimated expenditure of $123,250 plus HST for this extended contract with Best Guard Security Inc. fell within these limits. In June 2018, staff secured Assurance Protection Group Inc. to complete the City's Security Risk Assessment as per RFP-9-2018. This work has begun and is expected to be completed by the end of 2018. The results of this assessment will guide future decisions related to the security of City facilities. As such, a further extension of the City's existing security services contract is required for a period ending April 30, 2019 in order to maintain continuity of services during this assessment phase. The cost of the 24 month contract extension now exceeds $125,000 threshold and requires the approval of Council. Once the assessment is completed and recommendations are considered, staff will include the appropriate costs in the 2019 Current Budget for Council's consideration in February 2019 . . Attachment: 1. Purchase Order 180267 69 70 cs 28-18 Subject: Security Services Prepared By: Marisa Car · o, MA f Director, Community Services Brian Duffie! Division Head, Operations MC:bd Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer Approved/Endorsed By: Ray Rodrigues Manager, Supply & Services ~· September 11, 2018 Page 3 . Stan Karwowski, CPA, CMA, MBA Director, Finance & Treasurer VENDOR:80506 BEST GUARD SECURITY INC. 200-1001 FINCH AVE WEST TORONTO, ON M3J 2C7 PH: (416)749-2009 FAX: (866)444-4702 CONTACT: BOYAN BOZHKOV EXT 203 PURCHASE ORDER THE CITY OF PICKERING· ONE THE ESPLANADE PICKERfNG, ON L1V 6K7 . (905) 420-4616 Page: 1 Purchase Order Number BL 180267 QUOTE THIS NUMBER ON ALL. INVOICES, SHIPPING DOCUMENTS & CORRESPONDENCE For Information regarding this order contact Rav Rodriaues (905)420-4616 Ship to: AS DIRECTED xxxxxx. ATTN: Marcos Moreira Note: Deliveries to the Pickering Civic Complex: Trucks over 1 O' in height must ship to Pickering Operations Centre -2570 Tillings Road, Pickering Ontario L 1V 2PB Order Date 2018/04/23 Delivery Date 2018/04/23 Ship Via Delivery Requisition Number 11977 Terms NET30 SUBJECT TO TERMS AND CONDITIONS STATED BELOW I Account Code I QTY I UOM I DESCRIPTION 0000.0000.0000 EACH Provide Security Services for the City of Pickering at specified locations and dates/times as requested As per SS2018-8 approved by M.Carpino THIS ORDER IS VALID FROM MAY 1, 2018 UNTIL SEPTEMBER 30, 2018-EXTENSION PRICING COORDINATE WORK WITH: MARCOS MOREIRA@ 905.420.4660, EXT. 3234 TOTALS: I PRICE 0.00 0.00 FOB PICKERING I EXT 0.00 0.00 I Buyer Ray Rodrigues . HST I 0.00 0.00 HEALTH & SAFETY REGULATIONS, WSIB CLEARANCE CERTIFICATE AND CERTIFICATE OF INSURANCE HAVE BEEN RECEIVED AND ON FILE. CONDITIONS: 1. PACKING SLIPS MUST ACCOMPANY SHIPMENT 2. MSDS MUST ACCOMPANY SHIPMENT WHERE APPLICABLE 3. NOT VALID UNLESS SIGNED BY AN AUTHORIZED REPRESENTATIVE O.F SUPPLY & SERVICES 4. ORDERS EXCEEDING DELIVERY TERMS MAY BE SUBJECT TO CANCELLATION 5. GOODS OR SERVICES IN NON • COMPLIANCE OF ORDER ARE SUBJECT TO RETURN OR CORRECTION AT THE VENDORS EXPENSE 6. ADJUSTMENTS TO A PURCHASE ORDER MUST BE AUTHORIZED BY SUPPLY & SERVICES Authorization ACCTS PAYABLE COPY TOTAL 0.00 0.00 72 -C~of-p](KER]NG Report to Executive Committee From: Richard Holborn Director, Engineering Services Report Number: ENG 22-18 Date: September 11, 2018 Subject: Tender for Asphalt and Concrete Repairs -Tender No. T-19-2018 -File: A-1440 Recommendation: 1. That Tender No. T-19-2018 for Asphalt and Concrete Repairs submitted by Aloia Bros. Concrete Contractors Ltd., in the amount of $317,455.48 (HST included) be accepted; 2. That the total gross project cost of $344,968.00 (HST included), including the tender amount and other associated costs, and the total net project cost of $310,654.00 (net of HST rebate) be approved; 3. That the Director, Finance & Treasurer be authorized to finance the net project cost of $310,654.00 as follows: a) The sum of $248,549.00 as approved in the 2018 Current Budget -Sidewalk Rehabilitation Program to be funded by a transfer from the Federal Gas Tax Reserve Fund; b) The sum of $7,602.00 as approved in the 2018 Current Budget-Water Resources & Development Services -Roads Maintenance to be funded from property taxes; c) The sum of $45,000.00 as approved in the 2018 Current Budget-Roads -Asphalt and Concrete Repairs program to be funded from property taxes; d) The over expenditure amount of $9,503.00 to be funded from property taxes; and 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: As part of the Roads, Sidewalks and Water Resources & Development Services Current Budgets, an annual service contract is called for Asphalt and Concrete Repairs at various locations throughout the city. This service contract is administered by staff in the · Engineering Services Department, with input from the Community Services Department -Public Works Section. Tender T-19-2018 was issued on Wednesday, July 11, 2018 and closed on Wednesday, August 1, 2018 with 4 bidders responding. The low bid submitted by Aloia Bros. Concrete Contractors Ltd. in the amount of $317,455.48 (HST included) is recommended for approval. ENG 22-18 September 11, 2018 Subject: Tender for Asphalt and Concrete Repairs Tender No. T-19-2018 Page 2 In accordance with Purchasing Policy Item 06.11, 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: (c) Over $250,000, the Manager may approve the award, subject to the approval of the Director, Treasurer, CAO and Council. Financial Implications: 1. lender Amount Tender No. T-19-2018 Part A -Engineering -Maintenance Work Part B -Development Services -Maintenance Work Sub Total HST (13%) Total Gross Tender Amount 2. Estimated Project Cost Summary Tender No. T-19-2018 Associated Costs Material Testing -Sidewalk Rehabilitation Program only Construction Contingency (10%) -Sidewalk Rehabilitation Program only Total Project Cost HST (13%) Total Gross Project Cost HST Rebate (-11.24%) iotal Net Project Cost $273,464:05 7,470.00 $280,934.05 36,521.43 $317,455.48 $280,934.00 2,500.00 21,847.00 $305,281.00 39,687.00 $344,968.00 (34,314.00) $310,654.00 73 74 ENG 22-18 Subject: Tender for Asphalt and Concrete R~pairs Tender No. T-19-2018 3. Approved Source of Funds 2018 Current Budget Account Code Project Description 2320.2410.0001 Asphalt and Concrete Repair Program · 2323.5981.0000 Sidewalk Rehabilitation 2613.2407.oooo· Program Water Resources & Development Services Road Maintenance Additional Asphalt and Concrete Funds Required Repair Program Total Funds Source of Funds· Property Taxes Federal Gas Tax Reserve Fund Property Taxes Property Taxes Net Project Cost under (over) Approved Funds September 11, 2018 Page 3 ·Available Required Budget $45,000.00 $45,000.00 250,000.00. 248,549.00 10,000.00 7,602.00 0.00 9,503.00 $305!000.00 $310,654.00 ($5,654.00) Although the estimated net project cost ha$ resulted in an over expenditure of $5,654.00, when taking 'into account the funding sources, an additional amount of $9,503.00 is required for the curb repairs identified in the Roads Asphalt and Concrete Repair program. Thi$ over expenditure will be funded from property taxes from savings to be realized in the 2018 .Roads Current Budget. Discussion: As part of the Roads, Sidewalks and Water Resources & Development Services Current Budgets, an annual service contract is issued for Asphalt and Concrete Repairs at various locations throughout the city. This annual maintenance repair contract consists of the removal and replacement of concrete curb and gutter, removal and replacement of concrete sidewalk, asphalt driveway restoration and asphalt road repairs. This service contract is administered by staff in the Engineering Services Department, with input from the Community Services Department -Public Works Section. Tender No. T-19-2018 was issued on Wednesday, July 11, 2018 and closed on Wednesday, August 1, 2018 with 4 bidders responding. The low bid submitted by Aloia Bros. Concrete . Contractors Ltd. in the amount of $317,455.48 (HST included) is being recommended for approval. References for Aloia Bros. Concrete Contracting Ltd. have been reviewed and deemed acceptable by the Manager, Capital Projects & Infrastructure. The City's Health & Safety Regulation form and current Certificate of Clearance issued by the Workplace Safety & Insurance Board has been submitted by Aloia Bros. Concrete Contracting Ltd. The Certificate of Insurance. has been reviewed by the Manager, Budgets & Internal Audit and is deemed acceptable. In conjunction with staff's review of the contractor's previous work experience and the bonding available on this project, the tender is deemed acceptable. · ENG 22-18 Subject: Tender for Asphalt and Concrete Repairs Tender No. T-19-2018 September 11, 2018 Page 4 conjunction with staff's review of the contractor's previous work experience and the bonding available on this project, the tender is deemed acceptable. Upon careful examination of all tenders and relevant documents received, the Engineering Services Department recommends acceptance of the low bid submitted by Aloia Bros. Concrete Contractors Ltd. for Tender No. T-19-2018 in the amount of $317,455.48 (HST included), and the total net project cost of $310,654.00 (net of HST rebate) be approved. Attachments: 1. Supply & Services Memorandum tjated August 9, 2018 2. Record of Tenders Opened and Checked Prepared By: . () PJ,~ Rayko~es (/ Manager, Supply & Services SB:mjh Reco nded for the consideration of Pie erin City Council Approved/Endorsed By: v:?~ RJd;d Holborn, P. Eng. Director, Engineering Services Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer 75 76 ATTACHMENT# I TO REPORT# &Jc7 C~cO. 18. __ /_of ,3 -Ol;;bf-P1CKER1NG Memo To: Richard Holborn Director, Engineering Services From: Justin MacDonald Buyer, Supply & Services Copy: Administrative Assistant, Engineering Services Subject: Tender No. T-19-2018 Tender for Asphalt and Concrete Repairs Closed: Wednesday, August 1, 2018:.... 2:00pm File: F-5400-001 August 9, 2018 Tender No. T-19-2018 was advertised on the City's website on July 11, 2018. Four companies have submitted a bid 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 completed below. The unsuccessful Bidder's tendering deposit, other than a bid bond, shall 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 and are attached. Summary Harmonized Sales Tax Included Bidder Total Tendered Amount Aloia Bros. Concrete Contractors Ltd $317,455.48 Pencon Construction Canada Corp. $335,475.53 GMP Contacting (274084 Ontario Ltd) $373,454.83 Brennan Paving & Construction Ltd $8.11,784.00 After Calculation Check $317,455.48 $335,475.53 $373,454.83 $811,784.32 Pursuant to Information to Bidders Item 26 and Tendering Specifications Item 20, the following documentation will be requested of Aloia Bros. Concrete Contractors Ltd for your review during the evaluation stage of this tender call. Please advise if Supply & Services is to proceed with collecting the following documentation: ATTACHMENT# / TO REPORT# f)v'~ :J;L -18 ·~-~;,_. __ id of .3 (a) A copy of the currently dated and signed City's Health and Safety form; (b) A copy of the current Clearance Certificate issued by Workplace Safety & Insurance Board; (c) The City's certificate of insurance or approved alternative form shall be completed by the Bidder's agent, broker or insurer; and (d) A Waste Management Plan. A budget of $190,000 was provided to Supply & Services for this procurement. If the recommendation to award exceeds the budgeted amount, refer to Financial Control Policy Item 11 for additional instructions. In accordance with Purchasing Policy Item 06.04, the authority for the dollar limit as set out below excludes HST. As such, in accordance with Purchasing Policy Item 06.11, 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: (c) Over $250,000, the Manager may approve the award, subject to the approval of the Director, Treasurer, CAO and Council. Please include the following items in your report: 1. if Items (a) through (b) noted above are acceptable to the Co-ordinator, Health & Safety or designate, if required; · 2. if Item (c) is acceptable to the Manager, Budgets & Internal Audit; 3. if the list of subcontractors is acceptable to Engineering·Services; 4. if Item (d) is acceptable to Engineering Services; 5. any past work experience with low bidder Aloia Bros. Concrete Contractors Ltd including work location; 6. without past work experience, if reference information is acceptable to Engineering Services; 7. the appropriate account number(s) to which this work is to be charged; 8. the budget amount(s) assigned thereto; 9. Treasurer's confirmation of funding; 10. related departmental approvals; and 11. related comments specific to the project. After receiving Council's approval, an approved lion-line" requisition will be required to proceed. Enquiries can be directed to the City's website for the unofficial bid results as read out at the public tender opening or to Supply & Services. Bidders will.be advised of the outcome in due course. August 9, 2018 Tender No. T-19-2018 Asphalt and Concrete Repairs Page 2 77 ATfACHMENT#_=/ =-TO REPOR"r# r;;.rJ f7 f)? -· If) _..,.,3_of :~ If you require further information, please feel free to contact me or a member of Supply & Services. JM Attachments (3) August 9, 2018 Tender No. T-19-2018· 7 8 Asphalt and Concrete Repairs Page 3 -Czi:10/-PlCKERJNG City of Pickering Record .of Tenders Opened and Checked Tender Description: Asphalt-and Concrete Repairs ~ ---Tender No.: T-19-2018 Date: Time: Wednesday,August1,2018 Approx. 2: 15 pm Local Time ~ 0, Bidder Name Total Tendered <..'0 01 :ti: Amount $ ~ 17 /-tS-S '-{ E? Aloia Bro. Concrete Contractors Ltd. ----~ Brennan Paving & Construction Ltd. $ '6 l I, rf:S'-(, l.fi> ~.J ~ I GMP Contracting (27 4084 Ontario Ltd) .$ 37"3, '-/Sl..J.'8's ~~1 z w ., ~ ~ 5 i:5 l-<C .. Pencon Construction Canada Corp. City Staff Present t/&r!c~ $ '?{:'.Yfl.:.-175•,;-.:. $ $ ~~& /k:iu Bidder Sign In ---7 -7 --, ' / , 7 T Other Comments The information is strictly preliminary, pending review and verification of conformance to terms, conditions and specifications. a:, r- BO -Cdgof-. -PlCKERlNG From: Stan Karwowski Director, Finance & Treasurer Report to Executive Committee Report Number: FIN 18-18 Date: September 11, 2018 Subject: Section 357/358 of the Municipal Act-Adjustment to Taxes Recommendation: 1. That the write-off of taxes as provided for in Attachment 1, in accordance with sections 357 and 358 of the Municipal Act, 2001 be approved; and 2. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: Not Applicable Financial Implications: If approved, the write-off of taxes referred to in Attachment 1 of this report represents a gross cost of $5,041.77 with a net cost to the City of approximately $1,271.06, 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 2018 Current Budget allocation under General Government -Provision for Uncollectable Taxes. 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, a reduction of taxes due to fire, demolition, exemption, assessment change, or error is allowed. A change in realty tax class can translate into lower property taxes if a property is moved 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, may result in reductions in assessment and corresponding reductions in property taxes. Section 358 of the Municipal Act allows taxpayers to have their taxes revised if they have been overcharged due to a gross or manifest clerical error. On this basis, taxpayers are allowed to seek reduction of their taxes for the current year as well as the two prior years. This section of the Act allows for the reduction of taxes due to such errors, once confirm~d by MPAC. Application # 12/18 makes up roughly 35 per cent of the adjustment value on this report. The house was destroyed by fire and therefore, the property taxes only for the house have to be adjusted. Report FIN 18-18. Subject: Section 357/358 of the Municipal Act-Adjustment to Taxes September 11, 2018 Page 2 Four of the applications on Attachment 1 reflect the reason "razed by fire or demolition". Two houses were destroyed by fire. One house was demolished so that a new house can be built. One pool was filled in. One of the applications reflects the reason "Ceases to be liable for tax at rate it was taxed". A home based business moved to a new commercial building on Kingston Road. This application is to change the commercial property taxes to residential now that the property is used solely as a home. The purpose of sections 357 and 358 is to allow the municipality to rectify assessment and ·classification changes that are otherwise unable to be changed. Attachments: 1. Section 357/358 Adjustment to Taxes p?IT Mike Jones. Supervisor, Taxation Recommended for the consideration of Pickering City Council (/JJ Tony Prevedel, P.Eng. Chief Administrative Officer Approved/Endorsed By: Stan Karwowski Director, Finance & Treasurer ~ . 2.1, io/e, 81 . CX> N) Attachment 1 App# Roll Number Reason 12 /18 010.018.13897 Razed by fire, demoliton or otherwise 13 /18 010.038.09401 Razed by fire, demoliton or otherwise 14 /18 020.016.30689 Razed by fire, demoliton or otherwise 15 /18 020.023.11400 · Razed by fire, demoliton or otherwise 16 /18 010.018.12180 Ceases to be liable for tax at rate it was taxed Chy of Pickering Section 357/358 Adjustment to Taxes September 11, 2018 Comments Year Structure destroyed by fire 2018 Structure demolished . · 2018 Structure destroyed by fire 2018 Pool filled in 2018 No longer commercial 2018 City 531.72 315.40 230.38 36.49 157.07 1,271.06 Region Education Total 965.92 259.00 1,756.64 572.96 153.63 1,041.99 418.51. 112.22 761.11 66.28 17.77 120.54 285.33 919.09 1 361.49 2,309.00 1,461.71 __ 5,041.77 Type of Application 357 357 357 357 357 ~ ~ J: 3'. m z -I f a ,a. m -0 0 ~ ~ ~- o<;) -<;ti;Jof . PlCKERlNG Report to Executive Committee Report Number: LEG 06-18 Date: September 11, 2018 From: Paul Bigioni Director, Corporate SeNices & City Solicitor Subject: City of Pickering proposed sale to 2198136 Ontario Ltd. -875 Kingston Road, Pickering -File: D-1000-006-12 Recommendation: 1. That the land .described as Part 3, Plan 40R-25703, Pickering be sold to 2198136 Ontario Ltd. (or as it may further direct) for a price of $120,000; 2. That the Director, Corporate SeNices & City Solicitor be authorized to execute a Transfer of the said lands, as well as any other documents, instruments and agreements as may be necessary to give effect to the above-noted transfer; and 3. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: Part 3, Plan 40R-25703 (the "Property") was originally a part of Fairport Road. It lies south of Kingston Road and dead ends at the north boundary of Highway 401. The Property is shown on the attached map (Attachment No. 1 to this Report). The Property is adjacent to a development site owned by 2198136 Ontario Ltd., a subsidiary of King Square Ltd.). 2198136 Ontario Ltd. wants to purchase the Property from the City, add it to its existing lands and proceed with development of a residential condominium development on the site. 2198136 Ontario Ltd. has already purchased lands from the Region of Durham immediately adjacent to the City's Property at a price of $500,000 per acre. Staff recommend that the City sell the Property to 2198136 Ontario Ltd. for $120,000. This is the same price per acre that was paid to the Region of Durham for its adjacent lands. Financial Implications: The proposed sale of the Property will generate revenues for the City in the amount of $120,000. Discussion: Part 3, Plan 40R-25703 (the "Property") was originally a part of Fairport Road. It lies south of Kingston Road and dead ends at the north boundary of Highway 401. The Property is shown on the attached map (Attachment No. 1 to this Report). The Property has an area of 0.24 acres. The property is adjacent to a development site owned by 2198136 Ontario Ltd., a subsidiary of King Square Ltd.). 2198136 Ontario ltd. wants to purchase the Property from the City, add it to its 83 LEG 06-18 Subject: 875 Kingston Road, Pickering September 11, 2018 Page 2 existing la,nds and proceed with development of a residential condominium development on the site. 2198136 Ontario Ltd. has already purchased lands from the Region of Durham immediately adjacent to the City's Property at a price of $500,000 per acre. · The Property was stopped up and closed and declared surplus to the needs of the City by By-law 6928/09 dated January 19, 2009. The property is subject to easements in favour of Bell Canada, the Region of Durham and MTO. The Property serves no municipal purpose. If added to the adjacent lands of 2198136 Ontario Ltd., the Property will enable the development of those lands in accordance with the City's Zoning By-law and Official Plan policies. Staff normally obtain a certified property appraisal prior to entering into any agreement to sell . surplus City lands. In this case, however, the Region of Durham has already agreed to sell to 2198136 Ontario Ltd. Regional lands immediately adjacent to the City's Property. The Region agreed to sell its lands at a price of $500,000 per acre. This price was determined to be fair market value by the Region of Durham's in-house property appraiser. Given that, it is recommended that the City sell its Property to 2198136 Ontario Ltd. for the same price per acre. 84 This would result in a sale price of $120,000. · Attachments: 1. Location Map ndorsed By: PB:ks Recommended for the consideration · of Pickering City Council <J{JJ Tony Prevedel, P.Eng. Chief Administrative Officer ½· 2.B,Z0/8 .. , I " " -Cdt;()/- P1CKER1NG co City Development CJ"I Department ~~·· 0-... -~-\17': . --< \ -7 __,.___, "a_/ '----- /. ~ . .. -\ •. ~; ;~ !1 , __ --i \ --~--......... !Location Map I File: 875 Kingston Road -Aerial Map !Applicant: City of Pickering !Property Description: oac • n :J: 3:·· m D 40R~25703 , Part 2 ~· ........... D 40R-27716 , Parts 1 and 2 0 :4' D 40R-25703 , Part 1 0 --. D 40R-25703 , Part 3 a D 40R-25703 , Parts 1, 4 , and 5 to; ~ 86 --'---_ Ci/1 o/--p J (KER J NG From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: 2019 Committee and Council Meeting Schedule Recommendation: Report to Executive Committee Report Number: CLK 03-18 Date: September 11, 2018 1. That the 2019 Standing Committee and Council Meeting Schedul_e included as Attachment 1 to this report, be approved. Executive Summary: In accordance with the MLmicipal Act, 2001, every municipality and local board shall pass a procedure by-law for governing the calling, place and proceedings of meetings. Financial Implications: There are no financial implications. Discussion: The City of Pickering Procedural By-law provides for governing the calling, place and proceedings of meetings. In accordance with the intent of the Municipal Act, of open, transparent and accountable government, the 2019 meeting schedule, as required by the Procedural By-law, is presented in order for public notification to commence .. Attachments: 1. 2019 Standing Committee and Council Meeting Sc Prepared By: · f;>.h~ Debbie Shields City Clerk Ap Recommended for the consideration of Picker. i ~ng ?. ity C ·_ou Jnc /i~ uu~ Aj-,o, -Wt8 Tony Prevedel, P.Eng. Chief Administrative Officer d/Endorsed By: orate Services & City Solicitor s 6 13 20 27 s 5 12 19 26 s 1 8 15 22 29 Draft 2019 Committee & Council Meeting Schedule· AffM:tlMENT# / TO REPO&I CLK._c>S--18' January 2019 February 2019 March 2019 April 2019 M T w Th F s s M T w Th F s s M T w Th F s s M T w Th F 1 2 3 4 5 1 2 1 2 2 3 4 5 -8 9 10 11 12 3 -5 6 7 8 9 3 •• .5 6 7 8 9 7 8 9 10 11 12 14 15 16 17 18 19 10 11 12 13 14 15 16 10 11 12 13 14 15 16 14 15 16 17 18 19 21 22 23 24 25 26 17 -18 19 20 . 21 22 23 17 ,.18 19 20 · 21 22 23 21 22 23 24 25 26 28 29 30 3-1 24 25 26 27 28 24 25 26 27 28 29 30 28 29 30 31 May 2019 June 2019 July 2019 August 2019 M T w Th F s s M T w Th F s s M T w Th F s s M T w Th F 1 2 3 4 1 1 2 3 4 5 6 1 2 7 8 9 10 11 2. 3 4 5 6 7 8 7 8 9 10, 11 12 13 4 5 6 7 8 9 14 15 16 i7 18 9 10 11 ·12 13 14 15 14 15 16 17 18 19 20 11 12 13 14 15 16 20 21 22 23 24 25 16 18 19 20 21 22 21 22' 23 24 25 26 27 18 19 20 21 22 23 27 28 29 30 31 23 25 26 27 28 29 28 29 30-31 25 26 27 28 29 30 30 September 2019 October 2019 November 2019 December 2019 M T w Th F s 2 3 4 5 6 7 -10. 11 12 13 14 16 17 18 19 20 21 23 24 25 26 27 28 30 s M T w Th F s 1 ,2 3 '4 5 -6-8 9 10 11 ·12 13 20 27 14 15 16 17 18 19 21 22 23 24 25 26 28 ·29 30 31 Victoria Day-May 20 Labour Day-September 2 · s M T w Th F s s M T w Th F 1 2 3 4 5 6 3 -5 6 7 8 9 8 10 11 12 13 10 11 12 13 14 15 16 15 17 18 19 20 17 18 19 20 21 22 23 22 23 24 25 26 27 24 25 26 27 28 29 -30 29 30 31 Mget Meeting Easter Monday -April 22 Thanksgiving -October 14 s 6 13 20 27 s 3 10· 17 24 31 s 7 14 21 28