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February 8, 2010
Ci;-0, oExecutive Committee Meeting Agenda Monday, February 8, 2010 PICKERING Council Chambers 7:30 pm Chair: Councillor McLean (1) MATTERS FOR CONSIDERATION PAGES 1. Chief Administrative Officer's Report, CAO 01-10 1-11 Proposed Firearms By-law RECOMMENDATION 1. That staff be directed to solicit input from stakeholders and the public regarding the draft Firearms By-law included as Attachment 1 to this report; and 2. That upon the completion of a consultation process, staff report back to Council with recommendations regarding a final Firearms By-law. 2. Director, Operations & Emergency Services, Report OES 02-10 12-21 City's Traffic & Parking By-law No. 6604/05 -Updating Amendments RECOMMENDATION 1. That Report OES 02-10 of the Director, Operations & Emergency Services regarding proposed amendments to the City's Traffic & Parking By-law No 6604/05 be received; and 2. That the attached draft by-law be enacted to amend Sections 8, 25, 26 and 46 and Schedules.2, 4, 9 and 13 to By-law No. 6604/05. 3. Director, Corporate Services & Treasurer, Report CS 02-10 22-39 City Policy - Accountinq for Tangible Capital Assets RECOMMENDATION 1. That Report CS 02-10 of the Director, Corporate Services & Treasurer be .received; Accessible * For information related to accessibility requirements please contact p I ~ ~ c G f~p ~ ~ Linda Roberts P Phone: 905.420.4660 extension 2928 TTY: 905.420.1739 Email: Irobe rtse.Citvofpickerina.com I Ctrl o¢~ Executive Committee Meeting Id~ Agenda _ Monday, February 8, 2010 DICKERING Council Chambers 7:30 pm Chair: Councillor McLean 2. That the Accounting for Tangible Capital Assets Policy, attached to this report, be approved; and, 3. That the appropriate officials of the City of Pickering be authorized to take the necessary action to give. effect hereto. 4. Director, Corporate Services & Treasurer, Report CS 03-10 40-43 Formal Quotations - Quarterly Report for Information RECOMMENDATION That Report CS 03-10 of the Director, Corporate Services & Treasurer regarding. Formal Quotations - Quarterly Report for Information be received for information. 5. Director, Corporate Services & Treasurer, Report CS 04-10 44-50 2010 Annual Repayment Limit for Debt and Financial Obligations RECOMMENDATION That Report CS 04-10 of the Director, Corporate Services & Treasurer regarding the 2010 Annual Repayment Limit for Debt and Financial Obligations be received for information. (II) OTHER BUSINESS (III) ADJOURNMENT Cary Report To EXECUTIVE COMMITTEE PICKERING Report Number: CAO 01-10 Date: February 8, 2010 01 From: Andrew C. Allison City Solicitor Subject: Proposed Firearms By-law File: L-2000-001-10 Recommendations: 1. That staff be directed to solicit input from stakeholders and the public regarding the draft Firearms By-law included as Attachment 1 to this report; and 2. That upon the completion of a consultation process, staff report back to Council with recommendations regarding a final Firearms By-law. Executive Summary: As part of the review of all municipal regulatory by-laws and in direct response to questions raised by members of Council, Municipal Law Enforcement Services has prepared a revised by-law regulating the discharge of firearms and bows within the City of Pickering. This draft by-law clarifies the restrictions relating to bows, adopts the existing by-law's prohibited firearms area with some minor modifications, and implements some basic restrictions relating to the discharge of firearms in areas where discharges are permitted. Staff are seeking approval from Council to solicit comments from stakeholders such as the Ontario Federation of Anglers & Hunters, the Pickering Rod & Gun Club, individuals who have expressed a desire to participate in the review process, and the general public. Financial Implications: No financial implications. Sustainability Implications: The regulation of the use of firearms and bows reduces the risk of dangerous unintentional interactions between persons discharging firearms and members of the community who are using the off-road trails and green spaces. Background: The existing Firearms By-law was passed in 1975. It needs to be updated. Report CAO 01-10 February 8, 2010 Subject: Draft Firearms By-law Page 2 02 The existing Firearms By-law prohibits the use of firearms throughout urban Pickering, south of Taunton Rd. From Taunton Road north and west of Brock Road, firearms are generally-prohibited with the exception of areas between Taunton Rd and Whitevale Rd. In order to provide clear guidelines, these pockets of permitted firearms use have been eliminated in the draft by-law. The area along Taunton Road is now significantly more utilized as compared to when the by-law was passed (1975), with Taunton Road now a major commuter corridor. Eliminating these pockets also creates a clear boundary along Brock Road. The prohibited area has also been extended to include the area east of Brock Road between the 5th Concession and Highway 7 surrounding Greenwood. The existing Firearms By-law contains provisions regulating the use of firearms, but no provisions clearly pertaining to the use of bows. It has been interpreted to include cross-bows as firearms, thereby prohibiting their use in areas where firearms are prohibited. This interpretation continues in the proposed by-law through a clear definition of "bows". The draft by-law proposes to regulate the following defined areas: 1. Urban Area, in which the discharge of both firearms and bows are prohibited; 2. Restricted Area, which is generally consistent with the previous by-law, and provides for an exemption for agricultural uses as outlined below; and 3. Permitted Area, which closely resembles the area in the existing by-law where the use of firearms and bows is permitted. The draft by-law provides an exemption for the discharge of firearms in the Restricted Area on farm properties that are at least 10 acres in size if the discharge is for the purpose of protection of property from nuisance wildlife and the person discharging the firearm is the owner of the property or a licensed hunter or trapper with the written permission of the owner. This will allow agricultural properties to continue to manage nuisance wildlife. The draft by-law includes provisions regulating the use of firearms and bows in the Permitted Area on City property or within 100 m of any school, church, community centre, conservation area or park. It also prohibits the discharge of firearms and bows within 100 metres of any dwelling or within 10 metres of a highway. Written permission from the owner of the property is required to be carried at all times when utilizing firearms or bows where permitted. In summary, the proposed Firearms By-law maintains the existing by-law's restrictions, incorporates ,a minor expansion of the prohibited area, and provides clear definitions and regulations lacking in the existing by-law. The exemption provided for agricultural properties addresses issues relating to nuisance wildlife control. CORP0227-07/01 revised Report CAO 01-10 February 8, 2010 Subject: Draft Firearms By-law Page .3 03 Soliciting comments from stakeholders and the general public can provide valuable information to assist Council when dealing with the issues relating to the discharge of firearms and bows in the City. Staff will therefore provide a copy of the proposed Firearms By-law to the Ontario Federation of Anglers & Hunters, the Pickering Rod and Gun Club, and individuals who have requested that they be provided an opportunity to review the proposed by-law. In addition, a community page ad will be placed indicating that the draft by-law is available on the City's website or for pick up at the Clerk's Office. All comments will be requested to be submitted in writing by March 31, 2010 to the Manager, By-law Enforcement Services. Attachments: 1. Draft Firearms By-law. 2. Map from By-Law 247/75. Prepared By: Approved/Endorsed By: ~r . IICA n Ki4bl Thompson Debbie Shields, Manager, By-law Enforcement Services City Clerk Andrew C. Allison City Solicitor Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Cou it Thomas J. Qui , RDM III Chief Administrative Officer CORP0227-07/01 revised ATTACHMENT NO. 1 O THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. /10 Being a by-law to regulate the' discharge of firearms and bows WHEREAS pursuant to section 119.of the Municipal Act, 2001, a local municipality may, for the purpose of public safety; prohibit or regulate the discharge of guns or other firearms, air-guns, spring-guns, cross-bows, long-bows or any other weapon. NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY.OF PICKERING HEREBY ENACTS AS FOLLOWS: PART 1 INTERPRETATION Definitions 1. In this by-law; "bow" means a long-bow, compound bow, re-curve bow, cross-bow, or any other class of bow; "City" means The Corporation of the City of Pickering or the geographical area of Pickering, as the context requires; "community recreation centre" means a facility owned. by the.City used by the general public for recreational or other community activities; "dwelling" means a residential unit that is capable of being occupied on a permanent, seasonal or part-time basis; "firearm" means any barreled weapon from which any shot, bullet, or other projectile can be discharged by means of rimfire or centrefire ammunition, and includes, but is not limited to, rifles, air guns and pellet guns; "highway" has the same meaning as in subsection 1(1) of the Highway Traffic Act and includes all roads, streets, lanes, unopened and assumed road allowances;. "owner" means the person identified in the most recent tax roll as the owner of a property, or a lessee, tenant, mortgagee in possession or any other person who has care and control of.a property; "park" means a recreational area for use by the general public and includes a sports field., passive park area, playground, or any other City owned greenspace; "Permitted Area" means the area identified as such in Schedule "A"; Firearms By-law Page 2 05 .person" includes an individual, a corporation and the heirs, executors, administrators or other legal representatives of a person to whom the context can apply according to law; "property" means.a parcel of land and any buildings or structures on the land, and includes a portion of the property; "Restricted Area" means the area identified as such in Schedule "A", "school" includes an elementary school, a secondary school, a community college or university, and any private school; and "Urban Area" means the portion of the City south of and including Taunton Road. References 2. In this by-law, reference to any Act, regulation or by-law is reference to that Act, regulation or by-law as it is amended or re-enacted from time to time. 3. References:in this by-law to a Part, section or schedule are to a Part, section and schedule in this by-law. Word Usage 4. This by-law shall be read with all changes in gender or number as the context may require. 5. A grammatical variation of a word or expression defined has a corresponding meaning. Schedule 6. Schedule "A" (DEFINED AREAS) is attached to and forms part of this by-law. Conflicts 7. If a provision of this by-law conflicts with a provision of any applicable Act, regulation or by-law, the provision that establishes the higher or more restrictive standard to protect the health, safety and welfare of the general public shall prevail. Severability 8. Each section of this by-law is an independent section, and the holding of any section or part of any section of this by-law to be void or ineffective for any reason shall not be deemed to affect the validity of any other section or parts of sections of this by-law. Firearms By-law Page 3 06 PART II - REGULATIONS Urban Area 9. No person shall discharge a firearm or a bow in the Urban Area. 10. No owner of a property in the Urban Area shall permit the discharge of a firearm or a bow on such property. Restricted Area 11. No person shall discharge a bow in the Restricted Area. 12. No owner of a property in the Restricted Area shall permit the discharge of a bow on such property. 13. No person shall discharge a firearm in the Restricted Area unless all of the following conditions have been met: (i) the person discharging the firearm is the owner of the property, or a licensed hunter or trapper with the written permission of such owner; (ii) the property is classified under the Assessment Act in the Farm Property Class; (iii) the property is a minimum of 10 acres (4.05 hectares) in size; (iv) the discharge is for the purposes of protection of property from nuisance wildlife that may be killed or harassed in accordance with applicable provincial and federal legislation; and (v) the firearm's caliber is not greater than .275. 14. No owner of a property in the Restricted Area shall, permit the discharge of a firearm on such property unless all of the conditions set out in section 13 have been met. Permitted Area 15. No person-shall discharge a firearm or a bow in the Permitted Area, (a) on any property owned by the City; (b) within 100 metres of any school, place of worship; day nursery, community recreation centre, conservation area or park; Firearms By-law Page 4 07 (c) within 100 metres of any dwelling, other than a dwelling owned by the person discharging the firearm; (d) within 10 metres of any highway; (e) unless the person is the owner of the property; or (f) unless the person has received written permission from the' owner of the property and carries such permission on his or her person at all times while on the property. 16. No owner of a property in the Permitted Area shall permit the discharge of a firearm or a bow on such property within, (a) . 100 metres of any school, place of worship, day nursery, community recreation centre, conservation area, or park; (b) 100 metres of any dwelling, other than a dwelling owned by them; or (c) 10 metres of any highway. Exempted Activities 17. None of the prohibitions or restrictions in this Part apply, (a) where the discharge is blank ammunition fired for the purpose of a ceremonial event, historical display or education. program, theatrical, film or television production, sporting event, or the training of animals; (b) where the discharge is within an indoor paint ball' facility operating in accordance with approved zoning and site plan regulations; or (c) where the discharge is within a shooting range or a firearms business, the use and location of which is in compliance with applicable zoning and building requirements and any other applicable federal, provincial and municipal laws. Exempted Individuals 18. None of the prohibitions or restrictions in this Part apply to the following persons in the performance of their duties: (a) a police officer, (b) an animal control officer, conservation officer, or an inspector or agent of the Ontario Society for the Prevention of Cruelty to Animals; or Firearms By-law Page 5 (c) any officer appointed to enforce federal or provincial legislation. PART III - ENFORCEMENT AND PENALTIES Enforcement 19. In this Part, "officer" means a police officer, municipal law enforcement officer, conservation officer, or any other officer appointed to enforce provincial or federal legislation. 20. This by-law maybe enforced by any officer. 21. An officer may, at any reasonable time, enter upon any property for the purpose of determining whether or not the provisions of this by-law have been complied with. 22. No person shall prevent, hinder or interfere or attempt. to prevent, hinder or interfere with an officer. Offences and Penalties 23. No person permitted under this by-law to discharge a firearm or bow shall permit the projectile discharged to leave the property from where the discharge took place. I 24. Every person who contravenes any provision of this by-law is guilty of an offence and upon conviction is liable to a fine pursuant to the provisions.of the Provincial Offences Act. PART IV - GENERAL Other Applicable Laws 25. Nothing in this by-law shall in anyway derogate from any person's responsibility to obtain approvals from any other government authority having jurisdiction over the use of firearms or bows. Short Title 26. This by-law may be referred to as the Firearms By-law". Repeal 27. By-law No. 247/75, as amended, is repealed. i Firearms By-law Page 6 09 Effective Date .28. This by-law comes into effect on the date of its passing. BY-LAW read a.first,.second and third time and finally passed this day of , 2010. David Ryan, Mayor Debbie Shields, City Clerk TOWN O MARKHAM MARKHAM TOWNLINE 3 6 b C 9 p F S i v~ 8 g - F TOWN AJAX 5 )IN )IN C) 0 z ~ON IOn z y a c a CL A o J O ~p9 - g. TOW OF WHITBY TOWN OF WHITBY ~ E I I I g L J F,. ATTACHMENT NO. 2 ALT Nn , e P'I i a entsnM q F 1 L/ /A RFMONT _ N p i 9 i O ~y 1 I C~ ~G s~{~_ v~~~ ~•I FYI ~ 4 p i 1 ;1~ I : f 1 1 fipg Is 5 a f( 'ER3 I RROU AM vLlt , ~ Jl.~ ~ ~ Y ~ • ~ ' KINSAI E _ _C ) ENWO r: > 1 J `41111 141r;31. 5 - 6 4f I ~ s C4 ~i nl eLAx)M~a l .r" t F THOSE PORTIONS Of THE CITY OF 1 p I a% ~cv r" r~~~ 2 PICKERINGSHADED ONTHISMAPARE THE PORTIONS OF THE CITY UPON WHICH II l THE DISCHARGE OF ANY FIREARM, ETC. IS ~s ~I Cry T PROHIBITED, UNDER ALL `il L1111 CIRCUMSTANCES. i C y _ THE DISCHARGE OF FIREARMS, ETC. ON E THOSE PORTIONS NOT SHADED IS -yJ---((S"`~~F {{{{~Yr~~~ SUBJECT TO THE RESTRICTIONS CONTAINED IN SECTION 2 OF BYLAW I ~I 3T 247/75, AS AMENDED. lLll Y` City REPORT TO ' EXECUTIVE COMMITTEE PI CKERING Report Number: OES 02-10 Date: February 8, 2010 12 From: Everett Buntsma Director, Operations & Emergency Services Subject: City's Traffic & Parking By-law No. 6604/05 - Technical & Housekeeping Amendments - File: A-1440 Recommendation: 1. That Report OES 02-10 of the Director, Operations & Emergency Services regarding proposed amendments to the City's Traffic & Parking By-law No 6604/05 be received; and 2. That the attached draft by-law be enacted to amend Sections 8, 25, 26 and 46 and Schedules 2, 4, 9 and 13 to By-law No. 6604/05. Executive Summary: The City's Traffic & Parking By-law No. 6604/05 (the "Traffic By-law") was passed on December 19, 2005. It amalgamated numerous traffic and parking related by-laws into one comprehensive document. Amendments are now needed as part of an ongoing effort to keep the Traffic By-law current, accurate and appropriate as well as to address concerns from the community and municipal by-law enforcement. Financial Implications: The amendments to the Traffic By-law recommended in this report do not present any major financial implications and can be accommodated within the proposed 2010 current budget. Sustainability Implications: The information presented by staff within this report are relevant to the social lens.of sustainability by improving traffic operations and community use of municipal streets as well as by-law enforcement via appropriate by- laws and accurate records. Report OES 02-10 February 8, 2010 Subject: City's Traffic & Parking By-law No. 6604/05 Page 2 Technical & Housekeeping Amendments F Background: As part of an ongoing effort to ensure accurate and appropriate traffic controls, records and associated by-laws, staff continue to verify and amend municipal documents. As a result of this work, staff have identified several discrepancies and hereby propose the following amendments to the municipal by-law 6604/05. This report was originally considered by the Executive Committee on July 6, 2009 through Report OES 24-09. The report was referred to the Special Council Meeting of September 28, 2009. At that meeting staff gave a presentation about on-street parking, specifically a proposed permit system, pay & display parking, and a brief discussion about cul-de-sac parking. These items will be addressed through a separate report to council. No Parkinq Schedule 2 The following is a list of proposed corrections and the reason for the correction: • Alliance Road, eliminate conflict with current and appropriate No Stopping • Breezy Drive, correct inappropriate side of street reference • Esplanade North, correct inappropriate side of street reference • Glenanna Road, correct incomplete limit reference • Strouds Lane, eliminate conflict with current and appropriate No Stopping • Browning Avenue, reduced right of way access control In consultation with and with the unanimous support of residents of Bayview Street, staff propose to designate the south side of Bayview Steet as No Parking. This change would formally confirm the current practice by residents, ensure clear east west access/egress for emergency response vehicles and the large Regional maintenance vehicles enroute to the sanitary sewer pumping station at the west limit of Bayview Street while accommodating guest and permit parking on the north side. Additionally, staff are proposing No Parking restrictions on the north side of Browning Avenue between 'St. Martins Drive and Fairview Avenue. The controls are a result of on street parking complaints and area emergency access concerns due to the reduced pavement width and right-of-way. The controls continue to allow on-street parking on the south side of Browning Avenue and are fully supported by area residents (as confirmed by community consultation correspondence). As there are no driveways fronting on the subject section of the road, no residents are immediately impacted by the change. CORP0227-07/01 revised Report OES 02-10 February 8, 2010 Subject: City's Traffic & Parking By-law No. 6604/05 Page 3 Technical & Housekeeping Amendments 14 No "U" Turn zones adjacent to schools - Sections 8 and 26 In response to ongoing difficulties expressed by parents and school administration staff at the Vaughan Willard Public School at the corner of Dixie Road and Glenanna Road, the City has been requested to establish a No "U" Turn zone on Dixie Road adjacent to the school. Given the vehicular and pedestrian congestion that occurs fronting the school during school arrival and dismissal times, the current practice by some motorists to initiate "U" turns in school zones disrupts traffic flow, impacts school bus operations and creates additional conflicts and unnecessary hazards. Supporting the No "U" Turn designation, staff propose to amend Sections 8 and 26 of the Traffic by-law to authorize the Director to designate a highway or portion of a highway that is adjacent to a school as a "U" turn prohibited area and establish "U" Turn prohibited areas on streets adjacent to schools where and when necessary without additional by-law amendments. Upon enactment of this provision, staff will install No "U Turn" signs•on Dixie Road between Glenanna Road and Silverthorn Square thereby addressing the concerns received from staff at the Vaughan Willard Public School. Permit Parking - Section 25 A review of municipal records yields that the current municipal Traffic and Parking By- law and its predecessors have contained provisions for on-street permit parking since 1986. The provisions were initially established to accommodate on-street parking for residents within the Village East community as a result of vehicular parking infiltration from the former Pickering Flea Market. With the relocation of the flea market, the provisions were unnecessary and eliminated but shortly thereafter re-established to provide for additional on street parking for the townhouse development on Ilona Park Road which was recognized as being on site parking deficient. On May 20, 2008, Council at the recommendation of staff, passed by-law 6864/08 thereby amending the Traffic and Parking By-law which in addition to various changes amended Schedule 4 to allow Permit Parking on Fairview Street. The intent of the change was not to allow for a general public application process for municipal approval of vehicular parking on City streets but to formally recognize the few residential properties which do not have a vehicular driveway and therefore have few options but to park on the road. However, the current language does not limit the permit process to only the intended properties. As such, staff propose further amendments to Section 25 and the associated Schedule 4 of the Traffic By-law thereby limiting permit availability to only those properties noted on the schedule. To date, staff have identified homes on Ilona Park Road, Fairview Avenue, Simpson Avenue and Bayview Street which do not have driveways. The proposed change to the by-law identifies these properties on the new schedule and allows staff to issue each an on-street Parking Permit. CORP0227-07/01 revised Report OES 02-10 February 8, 2010 Subject: , City's Traffic & Parking By-law No. 6604/05 Page 4 1 5 Technical & Housekeeping Amendments Future requests for on-street permit parking throughout the City will be put into abeyance pending resolution through a separate On-Street Parking Report, which will consider a system to review requests. Permitted Boulevard Parking - Schedule 13 In conjunction with the approved development of the SR&R Bay Ridges project near Bayly Street and St. Martins Drive, the site provides for on street permitted boulevard parking on the east side of St. Martins Drive to serve the new adjacent commercial properties. As one of the phases of the project is nearing completion and the area for boulevard parking has been constructed, staff anticipate its use by the public and hereby propose the area be included in the current Permitted Boulevard Parking provisions of the municipal Traffic and Parking By-law with a maximum 3 hour parking limit and parking restrictions from 2:00 am to 5:00 am. The restrictions are intended to discourage parking abuse and overnight parking and reflect current limitations as previously established on Liverpool Road, in the Nautical Village area. Speed Limit - Schedule 9 In conjunction with a resident request to review the appropriateness of the existing speed limit on Uxbridge/ Pickering Townline Road, it was identified that the road was not referenced within the current Traffic By-law No. 6604/05 (Schedule 9). Currently, the signs on Uxbridge Pickering Townline Road between York Durham Regional Road #30 and Sideline 30 identify a speed limit of 60km/h. Previously, posted 40km/h speed limit signs did identify a reduced speed zone between Sideline 30 to Sideline 28 in recognition of the former Stouffville Christian School. However with the closure of the school, the signs were removed by municipal Operations staff. Given the lack of speed signs on the remaining portions of Uxbridge Pickering Townline Road, the speed limit as established by the Ontario Highway Traffic Act is 50km/h. Previous Traffic by-laws indicate a 60km/h speed limit on Uxbridge Pickering Townline Road between Sideline 32 and Sideline 30 which does not correspond to the existing speed limit signs as noted above. As a corrective measure, staff propose to amend the municipal Traffic & Parking By-law to formally establish the following speed limits on Uxbridge Pickering Townline Road: • a continuous 60km/h speed limit between York Durham Regional Road #30 and Uxbridge Concession Road 2 (which reflects the existing signs in the area). • a 50km/h speed limit from Durham Regional Road #23 to 960m west thereof, being the west limit of the granular road (hence the need for a reduced speed. limit). CORP0227-07101 revised Report OES 02-10 February 8, 2010 Subject: City's Traffic & Parking By-law No. 6604/05 Page 5 Technical & Housekeeping Amendments 16 Attachments: 1. Draft Amending By-law Prepared By: Approved/Endorsed By: a4Ai,-- Ricord W. H (born, P. Eng. Everett Bulgy ma, ision Head Director Operations & Emergency Services Engineering Services Copy: Chief Administrative Officer (Acting) Chief Administrative Officer Manager, By-law Services Superintendent, Municipal Operations Recommended for the consideration of Pickering City Council / i Thomas Q n, RD III Chief Administrative Officer CORP0227-07/01 revised 17 THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. /10 Being a by-law to amend By-law No. 6604/05 WHEREAS By-law No. 6604/05 provides for the regulation of traffic and parking on highways, private property and municipal property within the City of Pickering; and WHEREAS the City wishes to amend By-law No. 6604/05. NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: 1. By-law No. 6604/05 shall be amended as set out in sections 2 through 8 of this by-law. 2. The following clause is added to Section 8: (d) designate any highway or portion of highway that is adjacent to a school as a "U" turn prohibited area. 3, Subsections 2, 3 and 8 of Section 25 are repealed and the following substituted: (2) The City Clerk is authorized to issue a parking permit to one occupant of each residence identified in Schedule 4 . (3) No Person other than a lawful holder of a valid parking permit shall park in an area on any highway or portion of highway identified in Schedule 4 and which is signed as a Permit Parking Only area. (8) Notwithstanding the provisions of any section of this by-law, the owner and the driver of a vehicle on which a valid parking permit is displayed in accordance with subsection (5), and the vehicle if parked within the designated Permit Parking Only area on the street named on the permit; is exempt from Sections 15 0) and (n) of this by-law. 4. The following clause is added to Section 26: (2) where authorized signs that clearly indicate the . regulation have been installed, no person shall at any time make a "U" Turn upon any highway or portion of highway that is adjacent to a school. By-law No. Page 2 5. Section 46 is repealed and the following substituted: 46. Sections 28, 29, 31, 32, 33 and 34 shall not be effective unless authorized signs that clearly indicate the regulation or prohibition have been erected. 6. Schedule 2 is amended as follows: SCHEDULE 2 NO PARKING COLUMN 1 . COLUMN 2 COLUMN 3 COLUMN 4 HIGHWAY SIDE LIMITS (FROM/TO) PROHIBITED TIMES OR DAYS DELETE Alliance Road North Sandy Beach Road to Anytime Bayly Street Breezy Drive West and West Shore Boulevard to Anytime South 23 metres west of Batory Avenue Esplanade North Both 11,0 metres east of Anytime Glenanna Road to 148.metres east of Glenanna Road Glenanna Road North Listowell Crescent to Road Anytime Strouds Lane South Fernham Street to 25 Anytime Metres west of Fernham Street ADD Alliance Road North and Sandy Beach Road to Anytime East Bayly Street Breezy Drive South West Shore Boulevard to Anytime 23 metres west of Batory Avenue By-law No. Page 3 19 Esplanade North South 110 metres east of Anytime Glenanna Road to 148 metres east of Glenanna Road Glenanna Road North Listowell Crescent to Anytime Dixie Road Bayview Street South - Full limit Anytime Browning Avenue North St. Martins Drive to Anytime Fairview Avenue 7. Schedule 4 is deleted and replaced amended as follows: SCHEDULE 4 PERMIT PARKING COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 HIGHWAY SIDE LIMITS (FROM/TO) APPLICABLE OR DAYS PROPERTIES Ilona Park Road South 73 metres west of 1240 Ilona Park Road Liverpool Road to 140 Metres west of Liverpool Road Fairview Road West 30 metres south of 716 and 716a Browning Avenue to Fairview Avenue 45 metres south of Browning Avenue Bayview Avenue North 80 metres west of 1242a and 1242b Front Street to 97 Bayview Avenue metres west of Front Street Simpson Avenue East 43 metres south of 715 Browning Avenue to Simpson Avenue south limit of Simpson Avenue By-law No. Page 4 20 8. Schedule 9 is amended as follows: SCHEDULE 9 SPEED LIMITS COLUMN 1 COLUMN 2 COLUMN 3 HIGHWAY LIMITS (FROM/TO) SPEED AMENDING BY-LAW # ADD Uxbridge Pickering York Durham Regional 60 km/h Townline Road Road #30 to Uxbridge Concession Road 2 Uxbridge Pickering Durham Regional 50 km/h Townline Road Road #23 to 960 metres west of Durham Regional Road #23 9. Schedule 13 is deleted and replaced amended as follows: SCHEDULE 13, PERMITTED BOULEVARD PARKING - BY-LAW NO 6604/05 COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 HIGHWAY SIDE LIMITS (FROM/TO) PERMTITED TIMES OR DAYS Liverpool Road West 70 metres north of the From 5:00 a.m. to 2:00 south limit to 20 metres a.m., and for a maximum North thereof, and from of 3 consecutive hours 135 metres north of the south limit to 80 metres north thereof; and from 225 metres north of the South limit to 85 metres By-law No. Page 5 2 1 north thereof. Liverpool Road East 55 metres north of the From 5:00 a.m. to 2:00 south limit to 35 metres a.m., and for a maximum north thereof, and from of 3 consecutive hours 155 metres north of the south limit to 60 metres north thereof; and from 250 metres north of the south limit to 30 metres north thereof. St. Martins Drive East 87 metres south of Bayly From 5:00 a.m. to 12:00 to 72 metres south a.m., and for a maximum thereof. of 3 consecutive hours 10. This By-Law shall come into force on the day that it is passed. BY-LAW read a first, second and third time and finally passed this day of 2010. David Ryan, Mayor Debbie Shields, City Clerk i eitq REPORT TO EXECUTIVE COMMITTEE PICKERING ` Report Number: CS 02-10 Date: February 8, 2010 22 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: City Policy - Accounting for Tangible Capital Assets Recommendation: 1. That Report CS 02-10 of the Director, Corporate Services & Treasurer be received; 2. That the Accounting for Tangible Capital Assets Policy, attached to this report, be approved; and, 3. That the appropriate officials of the City of Pickering be authorized to take the necessary action to give effect hereto. Executive Summary: Effective with fiscal years starting January 1, 2009, the Public Sector Accounting Board (PSAB) requires municipal government to account and report on their tangible capital assets. These assets were previously expensed at the time of acquisition or construction. Tangible capital assets are defined as non financial assets having physical substance that are held for use by the municipality and have a useful life beyond one year. Examples of such assets are vehicles, equipment, buildings, land, roads, bridges and sidewalks. This policy prescribes the accounting treatment for the City's tangible capital assets to ensure compliance with PSAB standard PS 3150. Financial Implications: While there are no immediate direct identifiable financial implications associated with the adoption of this report and the attached policy, in the long-term it will impact the City's business practices regarding the maintenance of its capital asset infrastructure. Starting with 2009, the annual Financial Statements of the City.will change significantly. These changes will also lead to changes in the annual budgets. Furthermore, the information collected and presented in these documents will prove to be of great assistance in the management of the City's assets, including eventual replacement. Financial information will now be available on all the City's tangible capital assets over their useful life. This is a major change for all Ontario municipalities. Report CS 02-10 February 8, 2010 Subject: City Policy - Accounting for Tangible Capital Assets Page 2 23 Sustainability Implications: Passing the attached report with the corresponding policy will assist the City to effectively manage its capital infrastructure that in turn will maintain its financial sustainability objectives. Background: The Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants (CICA) which establishes accounting standards for government bodies approved standard PS 3150 which requires municipal governments to account and report tangible capital assets starting January 1, 2009. The new requirements represent a significant change in the reporting of capital assets and will have a significant impact on the financial statements and budgets of all municipalities. Under PS 3150, municipalities are required to capitalize their tangible capital assets in their financial statements. At the same time, a percentage of the asset's cost will be expensed each year of its useful life and this expense will be charged against annual results. Previously, assets were simply expensed in the year of acquisition or construction. The new reporting requirements apply to existing and newly acquired assets that have been purchased, contributed, donated and constructed. During the course of 2008 and 2009, City staff worked diligently to collect the required asset information for assets already owned by the City to meet the January 1, 2009 implementation date. The attached Policy was developed to prescribe the accounting treatment for the City's tangible capital assets to ensure continued compliance with PSAB standard PS 3150. Please note that Section 12 of the attached Policy refers to City Procedures regarding Tangible Capital Assets. These procedures are currently being developed and will not require Council approval. Attachments: 1. City Policy - Accounting for Tangible Capital Assets Report CS 02-10 February 8, 2010 Subject: City Policy - Accounting for Tangible Capital Assets Page 3 24 Prepared By: Prepared By: i J e S. Robertson ristine Senior v enior Financial Analyst Manager, Accounting Services Approved / Endorsed By: Gillis A. Paterson Director, Corporate Services & Treasurer GAP:jsr Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council Tho as J. inn, RDMR, III Chief Administrative Officer city 2 5 ATTACHMENT#..TO REPORT#LE .W - I D CITY POLICY M~ PICKERING Policy Title: Accounting for Tangible Capital Assets Policy Number: FIN 050 Reference: Date Originated: Date Revised: Public Sector Accounting Board PS 3150 January 2010 Approval: Point of Contact: Senior Financial Analyst, Corporate Services Policy Objective The purpose of this policy is to prescribe the accounting treatment for tangible capital. assets in accordance with Public Sector Accounting Board (PSAB) PS 3150 in order for the Corporation of the City of Pickering (the "City") to provide financial information about the investment in property, infrastructure, and equipment and the changes in such investment. In addition, this will allow the City to maintain accountability and ensure efficient and effective use of capital assets, as well as make appropriate decisions in planning for capital asset replacement needs. The principle issues in accounting for tangible capital assets are the recognition of the assets, the determination of their carrying costs, amortization charges and the recognition of any related write-downs. Scope This policy applies to all City departments, boards and agencies and other organizations falling within the reporting entity of the City. Index 01 Definitions 02' Categories 03 Opening Balances 04 Capitalization 05 Valuation 26 06 Single Asset, Pooling, Component or Segment Approach 07 Amortization 08 Betterments 09 Assets Under Construction 10 Disposals 11 Write-down for Impairment 12 Responsibilities 13 Procedures 01 Definitions 01.01 Amortization is the accounting process of allocating the cost less the residual value of a tangible capital asset to the fiscal years as an expense over its useful life in a rational and systematic manner appropriate to its nature and~use. Amortization expense is an important part of the cost associated with providing local government services, regardless of how the acquisition of tangible capital assets is funded. Depreciation accounting is another commonly used term to describe the amortization of tangible capital assets. 01.02 Assets Under Construction are assets purchased, constructed or developed and not yet in service. Once completed and in service, these assets will be recorded as an asset in their proper category and will be amortized over their useful life. 01.03 Betterments are subsequent expenditures on tangible capital assets that: • increase previously assessed physical output or service capacity; • lower associated operating costs; • extend the useful life of the asset; or • improve the quality of the output. i Policy Title: Accounting for Tangible Capital Assets Page 2 of 15 Policy Number: FIN 050 27 Amounts are capitalized in accordance with the thresholds provided in Section 04. Any other expenditure would be considered a repair or maintenance and expensed in the period. 01.04 Capital lease is a lease with contractual terms that transfer substantially all the benefits and risks inherent in ownership of the asset to the City. For substantially all of the benefits and risks of ownership to be transferred to the lessee, one or more of the following conditions must be met: a) there is reasonable assurance that the City will, obtain ownership of the leased property by the end of the lease term; b) the lease term is of such duration that the City will receive substantially all of the economic benefits expected to be derived from the use of the leased property over its life span; or c) the lessor would be assured of recovering the investment in the leased property and of earning a return on the investment as a result of the lease agreement. Account for a capital lease as acquiring a capital asset and incurring a liability. Account for a lease as an operating lease when the net present value of the future minimum lease payments or fair value, whichever is less, is less than $10,000. 01.05 Carrying costs are costs directly attributable to an asset's acquisition,. construction or development activity where, due to the nature of the asset, preparing the asset for intended use is over an extended period of time. Typical carrying costs could include: • technical and administrative work prior to commencement of and during construction; • overhead charges directly attributable to construction or development; and • interest (see Section 05.04). 01.06 Component is a part of an asset with a cost that is significant in relation to the total cost of that asset. Component accounting recognizes that each part might have a different useful life. This requires separate accounting for each component that has a different useful life than the asset as a whole. Policy Title: Accounting for Tangible Capital Assets Page 3 of 15, Policy Number: FIN 050 I 28 01.07 Cost is the gross amount of consideration given up to acquire, construct, develop or better a tangible capital asset, and includes all costs directly attributable to acquisition, construction, development or betterment of the tangible capital asset, including installing the asset at the location and in the condition necessary for its intended use. The cost of a contributed tangible capital asset, including a tangible capital asset in lieu of a developer charge, is considered to be equal to its fair value at the date of contribution. Capital grants are not netted against the cost of tangible capital assets - both purchased and contributed. The cost of a leased tangible capital asset is determined in accordance with Public Sector Guideline PSG-2, Leased Tangible Capital Assets in the PSAB Handbook. 01.08 Deemed disposition is when the asset is assumed or deemed to have been disposed of in the last year of its estimated useful life. At the deemed disposition date, the full cost of the addition and the related accumulated amortization is removed from the accounting records. Deemed disposition is the method used to remove pooled assets from the accounting system. 01.09 Fair value is the amount of consideration that would be agreed upon in an arm's length transaction between knowledgeable, willing parties who are under no compulsion to act. 01.10 Moveable property is property that may be moved from place to place. Examples of moveable property for purposes of tangible capital assets are Vehicles and Machinery & Equipment. 01.11 Net book value of a tangible capital asset is its cost, less both accumulated amortization and the amount of any write-downs. 01.12 Pooled Assets are assets that are similar or identical in nature and have a unit value below the capitalization threshold but have a material value as a group - normally recorded as a single asset with one combined value. Although recorded in the financial systems as a single asset, each unit may be recorded in the asset sub-ledger for monitoring and control of its use and maintenance. Examples could include personal computers, furniture and fixtures, small moveable equipment, etc. Policy Title: Accounting for Tangible Capital Assets Page 4 of 15 Policy Number: FIN 050 .29 01.13 Replacement cost is the cost to acquire an asset having equivalent service potential to that of the asset being replaced. 01.14 Reproduction cost is the cost of reproducing an asset in substantially identical form and does not take into account changes in technology or construction methods. 01.15 Residual value is the estimated net realizable value of a tangible capital asset at the end of its useful life. 01.16 Service potential is the output or service capacity of a tangible capital asset, and is normally determined by reference to attributes such as. physical output capacity, quality of output, associated operating costs, and useful life. 01.17 Straight-line amortization allocates the cost less estimated residual value of a capital asset equally over each year of its estimated useful life. 01.18 Tangible capital assets are non-financial assets having physical substance that: (i) are held for use in the production or supply of goods and services, for rental to others, for administrative purposes or for the development, construction, maintenance or repair of other tangible capital assets; (ii) have useful economic lives extending beyond a fiscal year; (iii) are to be used on a continuing basis; and (iv) are not for sale in the ordinary course of operations. Tangible capital assets include assets that are donated, contributed, leased (e.g. capital lease) and construction-in-progress. Tangible capital assets do not include such things as: • intangibles (e.g. Goodwill, copyrights, trademarks); • assets acquired by Right, such as purchased computer software; and • heritage assets. 01.19 Threshold is the minimum value which must be met for the capitalization of a tangible capital asset. 01.20 Useful life is the estimate of either the period over which the City expects to use a tangible capital asset, or the service potential of the tangible Policy Title: Accounting for Tangible Capital Assets Page 5 of 15 Policy Number: FIN 050 30 capital asset. The life of a tangible capital asset may extend beyond its Y useful life. The life of a tangible capital asset, other than land, is finite, and is normally the shortest of the physical, technological, commercial or legal life. I 02 Categories A category of assets is a grouping of assets of similar nature or function in the City's operations. The following list of categories shall be used: A Land B Buildings C Machinery & Equipment D Vehicles E Infrastructure - Roads F Infrastructure - Storm Sewers G Infrastructure - Sidewalks H Information Technology Hardware Infrastructure - Parks J Library Collection Materials K Furniture & Fixtures L Assets Under Construction 03 Opening Balances Capitalization for opening balances as of December 31, 2007 is set at a threshold of $5,000 for individual assets and pooled assets. No threshold was used on the opening balances for Land, Buildings and Roads and these categories therefore include 100% of assets identified. Pooled assets in. the opening balances include Streetlights, Computer Equipment, Park Infrastructure, Library Materials and Furniture & Fixtures. The majority of Furniture & Fixtures were purchased at the time of facility construction and would be completely depreciated based on their useful life. Therefore, the majority were deemed to have been disposed. of and have been excluded from the opening balances. Although PS3150 requires tangible capital assets to be recorded at historical cost, the transitional provisions allow for the fact that historical cost accounting records may not exist for all assets. PS3150 indicates that a government entity should apply a consistent method of estimating the cost of tangible capital assets for which it does not have historical records; it does not provide guidance on what. other measurement bases should be used. Policy Title: Accounting for Tangible Capital Assets Page 6 of 15 Policy Number: FIN 050 31 Where the City did not have historical accounting records, the following methods were used: Current Reproduction/Replacement: Determining current reproduction/replacement cost and deflating it back to the date of the asset's acquisition using an appropriate deflation index. Appraisal: Wherever necessary, the City contracted the services of an accredited appraisal company to provided current market values discounted back to the date of acquisition using an appropriate deflation index. To account for taxes properly, the cost for each asset had the estimated applicable PST and/or GST added to determine the final opening balance. 04 Capitalization Tangible capital assets and any betterments should be capitalized and amortized according to the following thresholds and useful lives: Asset Category Threshold Useful Life - Years* Land Always Capitalize Indefinite Buildings $100,000 15 - 45 Machinery & Equipment $5,000 various Vehicles $15,000 5-15 Infrastructure - Roads $100,000 10-50 Infrastructure - Storm Sewers $50,000 25 - 100 Infrastructure - Sidewalks $50,000 20 - 40 Information Technology $5,000 or pooled - see 4-8 Hardware threshold below Infrastructure - Parks $5,000 or pooled - see 10-40 threshold below Library Collection Materials Pooled - see threshold 4-7 below Furniture & Fixtures $5,000 or pooled - see various threshold below Assets Under Construction Always Capitalize n/a Pooled Assets $20,000 n/a Policy Title: Accounting for Tangible Capital Assets Page 7 of 15 Policy Number: FIN 050 32 *Specific useful lives are provided in separate Tangible Capital Assets City Procedure. 05 Valuation Tangible capital assets should be recorded at cost plus all related charges necessary to place the asset in its intended location and condition for use. These direct costs will be added as part of the original cost of the asset and will be amortized over the useful life of the associated asset. 05.01 Purchased Assets Cost is the gross amount of consideration paid to acquire the asset. It includes all non-refundable taxes and duties, freight and delivery charges, installation and site preparation costs and other directly related costs. The cost is net of any discounts or rebates. The cost excludes the value of any asset traded in. Cost of land includes purchase price plus legal fees, land registration fees, transfer taxes, survey soil tests and any other directly related costs. Costs would include any costs to make the land suitable for intended use, such as pollution mitigation, demolition and site improvements that become part of the land. When two or more assets are acquired for a single purchase price, it is necessary to allocate the purchase price to the various assets acquired. Allocation should be based on the fair value of each asset at the time of acquisition or some other reasonable basis if fair value is not readily determinable. 05.02 Acquired, Constructed or Developed Assets Cost includes all costs directly attributable (e.g., construction, architectural and other professional fees) to the acquisition, construction or development of the asset. Carrying costs such as internal design, inspection, administrative and other similar costs may be capitalized. Capitalization of general administrative overheads such as rent, utilities, and insurance are not allowed. Capitalization of carrying costs ceases when no construction or development is taking place or when the tangible capital asset is ready for use. 05.03 Donated or Contributed Assets The cost of donated or contributed assets that meet the criteria for recognition is equal to the fair value at the date of construction or Policy Title: Accounting for Tangible Capital Assets Page 8 of 15 Policy Number: FIN 050 33 contribution. Fair value may be determined using market or appraisal values. Cost maybe determined by an estimate of. replacement cost. Any related costs should also be capitalized. 05.04 Capitalization of Interest Costs Borrowing costs incurred when the acquisition, construction or production of an asset takes a substantial period of time to get ready for its intended use may be capitalized as part of the cost of that asset. Capitalization of interest costs should commence when expenditures are being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use are in progress. Capitalization should be suspended during periods in which active development is interrupted. Capitalization should cease when substantially all (90%) of the activities necessary to prepare the asset for its intended use are complete. If only minor modifications are outstanding, this indicates that substantially all of the activities are complete. 06 Single Asset, Pooling, Component or Segment Approach Tangible capital assets may be accounted for using the single asset, pooling, component and/or segment approaches. The approach used will be determined by the usefulness of the information versus the cost of collecting and maintaining information at that level. The approach taken does not have to be consistent across all categories of assets. Different approaches may be taken for each category. 06.01 Single Asset Approach The single asset approach is used when it is not possible to break down the assets into component parts and the value of the asset meets the threshold minimums outlined in Section 04. If a single asset approach is used, the replacement of individual parts will not increase the service potential of the asset as a whole and are recorded as an expense. 06.02 Pooling Approach Assets that are similar or identical in nature and have an individual value below the capitalization threshold but have a material value as a group may be recorded as a single asset with one combined value. Examples of pooled assets are computers and library materials. The capitalization threshold for pooled assets is $20,000. Thus, any grouping of assets must exceed this level to be considered an asset for PS 3150 purposes. Policy Title: Accounting for Tangible Capital Assets Page 9 of 15 Policy Number: FIN 050 34 06.03 Component Approach Factors to consider when determining whether to use a component approach include: a) major components have significantly different useful lives and consumption patterns in relation to the tangible capital asset as a whole; and b) value of components in relation to the value of the tangible capital asset as a whole. City infrastructure should use the component approach, where appropriate. Major components can be comprised of assets that have similar characteristics and estimated useful lives or consumption rates. 06.04 Segment Approach Linear assets (complex network systems such as roads, sidewalks and stormwater systems) are usually defined in terms of details such as . length, unit of measure and geographic reference (e.g., start and end points). For linear assets, it may be appropriate to break down assets into corresponding segments. For example, when work is performed at a specific point in a linear asset - such as replacing a portion of a roadway - the cost and work involved is attributed to that portion of the asset rather than the entire asset. 06.05 Approach Summary The component and segment approaches can make the accounting and reporting of assets easier. It allows more accurate tracking of an asset by age, type, use and other attributes used in estimating an asset's useful life. It also allows for more accurate tracking of betterments and maintenance. For example, if a segment of sidewalk is replaced, or a component of a building is replaced, the costs of the replacement can be capitalized and amortized over its useful life and the old segment/component written off. Policy Title: Accounting for Tangible Capital Assets Page 10 of 15 Policy Number: FIN 050 35 Asset classes will be evaluated using the following approaches: Asset Class Approach Components Land Segment All buildings over 5000sq ft: Structure Buildings Component Electrical & Mechanical Roof Cover Interior Finishes Land Improvements Machinery & Equipment Single Asset Vehicles Single Asset Segment/ Roads - Base/Surface Infrastructure - Roads Component/ Bridges - Deck/Structure Pooled IPS and Traffic Signals - Controller/Infrastructure Infrastructure - Storm Segment Sewers Infrastructure - Segment Sidewalks Information Technology Single Asset Hardware /Pooled Infrastructure - Parks Single Asset /Pooled Library Collection Pooled Materials Furniture & Fixtures Single Asset /Pooled Policy Title: Accounting for Tangible Capital Assets Page 11 of 15 Policy Number: FIN 050 3E 07 Amortization The cost, less any residual value, of a tangible capital asset with a limited life should be amortized over its useful life in a rational and systematic manner appropriate to its nature and use. The amortization method and estimate of useful life of the remaining unamortized portion should be reviewed on a regular basis and revised when the appropriateness of a change can be clearly demonstrated. Residual Value will be deemed to be nil for all assets for purposes of amortization. Useful life is normally the shortest of the asset's physical, technological, commercial or legal life. The City uses a straight-line method for calculating the annual amortization. A summary view of the estimated useful lives of assets is included in attached in Section 04. Please note that wherever a category contains many different types of assets with many different useful lives, in which no clear sub-categories stand out, the estimated useful life has been listed as `various' to reflect the vast pool of assets and their useful lives. City departments, boards and agencies and other organizations are responsible for establishing and utilizing an appropriate estimated useful life for assets acquired. The `half year rule' will apply to the City. Under the half year rule, six months of amortization is recorded for tangible capital assets acquired during a fiscal year and in the year of disposal. 08 Betterments When valuing the assets, the City must also consider if there have been any betterments since the asset was originally acquired or constructed. Costs of betterments are considered to be part of the cost of a tangible capital asset and would be added to the cost of the related asset. A betterment is a cost incurred to enhance the service potential of a tangible capital asset. In general, service potential may be enhanced when there is an increase in the previously assessed physical output or service, capacity, where associated operating costs are lowered, where the useful life of the property is extended, or the quality of the output is improved. For example, expenditures incurred to resurface a road which increases the useful life would be accounted for as a betterment. However, asphalt patching which is a temporary fix and does not increase the overall useful life of the road would be accounted for as repairs and maintenance. Policy Title: Accounting for Tangible Capital Assets Page 12 of 15 Policy Number: FIN 050 J 37 When recording a betterment, the cost of the betterment should not simply be added to the original cost of the asset. In some cases, a partial disposal of the existing asset that was improved occurs. For example, if the exterior of a building is replaced that results in increasing the useful life of the building, the cost of the replaced exterior should be removed from the cost of the building and the new exterior should be added to the cost. The accumulated depreciation related to the old exterior should also be removed. Betterments that meet the thresholds in Section 04 will be capitalized by the City. 09 Assets Under Construction Tangible capital assets purchased, constructed or developed by the City are charged to Assets Under Construction until they are put into use. The cost of a constructed asset includes direct construction or development costs (such as materials and labour), and overhead costs directly attributable to the construction or development activity. Assets under construction also include those assets that have. been acquired but require additional work to get the assets ready for use.. Capitalization of costs cease when a tangible capital asset is ready for use. Determining when a tangible capital asset, or a portion thereof, is ready for productive use requires consideration of the circumstances in which it is to be operated. Normally it would be predetermined by reference to factors such as productive capacity, occupancy level, or the passage of time. 10 Disposals Disposals of tangible capital assets that are moveable property are the responsibility of the Manager, Supply & Services as per the Purchasing Policy. Directors should notify the Manager when assets become surplus to operations. When other constructed tangible capital assets are taken out of service, destroyed or replaced due to obsolescence, scrapping or dismantling, the Director must notify Corporate Services of the asset and effective date of disposal. An asset that has been disposed of will be removed from the asset inventory records on disposal or when the asset is permanently withdrawn from use and no future economic benefit or service potential is expected from the asset. The gain or loss arising from the retirement or disposal of an asset should be recognized. The gain or loss is determined as the difference between the actual or estimated net disposal proceeds and the net book value of the asset. The Policy Title: Accounting for Tangible Capital Assets Page 13 of 15 Policy Number: FIN 050 38 resulting gain or loss will be accounted for as revenue or expense in the Statement of Operations. 11 Write-down for Impairment A write-down is required when an asset has become impaired (that is, the value of future economic value of the asset is less than the book value). When this occurs, the costs should be reduced to reflect the decline in the asset value. A write-down is used to reflect a partial impairment in the value of the asset. A write-off is used to reflect 100% impairment of the value of an asset. Capital assets are written-off in instances where they are destroyed, stolen, lost or obsolete. The write-off of a tangible capital asset requires the approval of the Director, Corporate Services & Treasurer. Any abandoned or indefinitely postponed projects must be written-down to their net realizable value and charged to the period in which the abandonment or indefinite postponement occurs. When the reduction in the value of the asset can be objectively estimated and it is expected to be permanent, the tangible capital asset must be written-down. An asset write-down cannot be reversed. An asset is never written-up except on initial capitalization or as the result of a betterment. Conditions that may indicate a need to revise remaining estimated useful life and/or write-down of the value of a tangible capital asset include: • A change in manner or extent to which the tangible capital asset is used; • Removal of the tangible capital asset from service for an extended period of time; • Physical damage; • Significant technological developments; • A change in the demand for the services provided through use of the tangible capital asset; and • A change in the law or environment affecting the period of time over which the tangible capital asset can be used. 12 Responsibilities The Treasurer or designate, in conjunction with the Senior Financial Analyst (PSAB) and senior Finance management staff are responsible for the application, implementation and interpretation of this policy. Policy Title: Accounting for Tangible Capital Assets Page 14 of 15 Policy Number: FIN 050 39 Each Director., Division Head or other staff person shall provide the information and assistance required to maintain.a proper asset inventory that in turn meets reporting requirements. 13 Procedures See separate City Procedure for detailed procedures considering Tangible Capital Assets. i Policy Title: Accounting for Tangible Capital Assets Page 15 of 15 Policy Number: FIN 050 Cz REPORT TO EXECUTIVE COMMITTEE PICKERING Report Number: CS 03-10 Date: February 8, 2010 40 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Formal Quotations - Quarterly Report for Information Recommendation: That Report CS 03-10 of the Director, Corporate -Services & Treasurer regarding Formal Quotations Quarterly Report for Information be received for information. Executive Summary: Council approved the Purchasing By-law on November 5, 2001 which includes a request to have a summary of contract awards arising from the formal quotation process be forwarded to Council as information only on a quarterly basis. Financial Implications: Not applicable Sustainability Implications: The City's participation in cooperative purchasing initiatives reduces paper and administrative costs. Background: In accordance with Purchasing Policy Item 04.06, a summary of contract awards arising from the formal quotation process is provided herein for the information of Council. Report CS 03-10 February 8, 2010 Subject: Formal Quotations - Quarterly Report for Information Page 2 41 Formal Quotations Summary October. 1, 2009 to December 31, 2009 PST Included / GST Extra (unless stated otherwise) Reference No. Description Award Status' Award Date Quotation for the Supply, 0-54-2009 Delivery, and Installation of a October 1, 2009 FalconStor Data Protection $79,778.00 Complete System Vendor: GDL Inc. Due to Quotation for the Resurfacing weather of Tennis Court #1 Glendale conditions, Q-57-2009 Tennis Club at David Farr $51,240.00 colourcoating October 7, 2009 Park to be Vendor: Court Contractors completed Ltd. early Spring 2010 Quotation for Fall Stump Removal, Supply, Delivery Q-59-2009 and Planting of Trees $41,917.44 Complete September 29, 2009 Vendor(s):Cressman Tree Maintenance & Landscaping Ltd. and Dutchmaster Nurseries Ltd. Q-60-2009 Quotation for City Services $81,852.44 Operating October 15, 2009 and Leisure Guides cost 2010 Budget Co-operative Tender for Supply, Retreading, Repair & Disposal of Tires & Tubes Ongoing Host: Region of Durham T-220-2009 Participants: Region of Various unit operating October 15, 2009 Durham, Oshawa, Whitby, prices costs 2009- Pickering, Clarington. 2010 Vendor: Kai Tire Year 1 of 5 Quotation for Underground 0-62-2009 Hydro Conversion on October 26, 2009 Liverpool Road $82,950.00 Complete Vendor: Dundas Power Line Ltd. CORP0227-07/01 revised Report CS 03-10 February 8, 2010 Subject: Formal Quotations - Quarterly Report for Information Page 3 42 Reference No. Description Award Status Award Date Co-operative tender for Supply & Delivery of Pool Chemicals Various unit Ongoing T-09055 Host: Town of Ajax prices operating Participants: Pickering, costs 2009- November 13, 2009 Oshawa, Ajax, Whitby, 2010 Oshawa, Vendor: Aquatech Logistics Year 1 of 3 Co-operative tender for Supply, Delivery and Stockpiling of Granular A Crushed Gravel Various unit Ongoing T-206-2007 Host: Region of Durham prices operating November 13, 2009 Participants: Region of costs 2009- Durham, Pickering, Oshawa 2010 Vendor: C.D.R. Young's Aggregates Year 3of3 Co-operative tender for Supply and Delivery of Winter Sand Various unit Ongoing T-282-2007 Host: Region of Durham prices operating December 3, 2009 Participants: Region of 2009- Durham, Oshawa, Whitby, costs 2010 Pickering, Clarington, Scugog Vendor: Lafarge Canada Year 3 of 3 Co-operative tender for Mixing, Supply & Delivery of Winter Sand and Salt Various unit Ongoing T-283-2009 Host: Region of Durham prices operating December 3, 2009 Participants: Region of 2009- Durham, Oshawa, Whitby, costs 2010 Pickering, Clarington. Vendor: Miller Paving Year 1 of 3 Replacement of Automated Q-63-2009 Sliding Doors - Pickering Completion December 10, 2009 Recreation Complex $51,019.50 by February Vendor: Rivett Architectural 1, 2010 Hardware CORP0227-07/01 revised Report CS 03-10 February 8, 2010 Subject: Formal Quotations - Quarterly Report for Information Page 4 43 Reference No. Description Award' Status Award Date Quotation for the Supply & Delivery Q-64-2009 Delivery of one(1) One Ton October 30, 2009 Truck with Service Body $71,168.76 February 10, Vendor: Pride Bodies Ltd. 2010 Community Centre Mould Abatement and Repairs - Completion Q-73-2009 Petticoat Creek Community $29,925.00 January December 30, 2009 Centre 31 Vendor: JMX Environmental 31, 2010 Inc. Attachments: Not applicable Prepared By: Approved/Endorsed By: Vera A. Felgemacher Gillis A. Paterson Manager, Supply & Services Director, Corporate Services & Treasurer C.P.P., CPPO, CPPB, C.P.M., CMM III VF:vw Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council oma J. inn, CMM IIIJ Chief Administrative Officer CORP0227-07/01 revised City o~ REPORT TO EXECUTIVE COMMITTEE I ~KERIN Report Number: CS 04-10 Date: February 8, 2010 44 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2010 Annual Repayment Limit for Debt and Financial Obligations Recommendation: That Report CS 04-10 of the Director, Corporate Services & Treasurer regarding the 2010 Annual Repayment Limit for Debt and Financial Obligations be received for information. Executive Summary: The Annual Repayment Limit presented _in this report represents the maximum amount which the City has available to commit to payments relating to debt and financial obligations. Financial Implications: Not applicable Sustainability Implications: An update to the Annual Repayment Limit is required to determine the annual repayment limit for both internal and external borrowings. This update is required to enable the City to borrow externally. Background: Recently, the Ministry of Municipal Affairs and Housing (MMAH) provided information regarding the City's 2010 Debt and Obligation Repayment Limit. Debt for these purposes includes all forms of loans, leases and other long term financial obligations and commitments. The 2010 Annual Repayment Limit (ARL) was calculated based on 25 percent of 2008 net own-source revenues as reported in City of Pickering's 2008 Financial Information Report (FIR) submitted to the Ministry of Municipal Affairs and Housing (MMAH). The FIR was prepared in conjunction with the annual financial statements. Own-source revenues represent generally the discretionary revenues of a municipality including property taxes, user fees, licenses and fines and exclude all grants, internal transfers and extraordinary items such as the one time sale of land or other fixed assets and non-discretionary items such as development charges. Report CS 04-10 February 8, 2010 Subject: 2010 Annual Repayment Limit for Debt Page 2 4 5 and Financial Obligations The calculated 2010 ARL based on 25% of net revenue fund, after taking into account net debt charges reported to MMAH is $12,244,601. This is based upon the 2008 Financial Information Return. Based on the draft 2010 Budget, the total annual principal and interest charges and all other financial obligations as recorded in the City's books are $4,268,876 out of which $2;992,506 of the annual charges has been reported to the MMAH as required. Taking into account the difference of $1,276,370 ($4,268,876 - $2,992,506), being the amount included in the City's books for annual charges pertaining to borrowings from 2009 .to 2010 ($1,232,637), and photocopiers contracts ($43,733), the net ARL available for 2010 would have to be reduced to $10,968,231. The net ARL of $10,968,231 for 2010, as adjusted, represents the maximum additional principal and interest payment for the year that could be undertaken without the Ontario Municipal Board approval. This calculation does not measure affordability nor take into account other commitments the City may have and the need to change levels of service or raise property taxes to maintain the debt repayment amount. This limit represents the maximum amount which"the municipality has available for approval and certification by the Treasurer as of December 31, 2009 to commit to payments relating to debt and financial obligations. The limit is effective January 1, 2010. For illustration purposes, if the City could borrow at 7%, the rate used by MMAH in the calculation, the net ARL of $10,968,231 would allow it to undertake additional long term borrowing as follows: Terms Debt Amount a) 5 years 44,971,912 b) 10 years 77,036,265 c) 15 years 99,897,705 d) 20 years. 116,197,595 Attachment: 1. Letter from the Ministry of Municipal Affairs and Housing dated January 4, 2010 l Report CS 04-10 February 8, 2010 Subject: 2010 Annual Repayment Limit for Debt Page 3 and Financial Obligations 46 Prepared By: Approved / Endorsed By: aryn Kong Gil s A. Paterson Senior Financial Analyst - Capital & Director, Corporate Services & Treasurer Debt Management Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council G~ Tho as J. ui RD MM Chief Administrative Officer i ATTACHMENT #-L-To nP©RT # C o~-)O r r Ministry Ministers des rio Municipal l Affairs Affaires municipales Onta and Housing et du Logement 47 ® ~ tom. Municipal Finance Policy Branch R D V 777 Bay Street, 13th Floor 777, Rue Bay, 13' stage CITY OF PICKERING Toronto ON M5G 2E5 Toronto ON M5G 2E5 Phone: (416) 585-6310 Telephone: (416) 585-6310 JAN 2011 Fax: (416) 585-6315 Telecopieur: (416) 585-6315 CORPORATE SERVICES Monday, January 4`h 2010 Dear Municipal Treasurer, Clerk/Treasurer: I am pleased to enclose a report showing your municipality's 2010. Annual Repayment Limit (ARL) respecting long-term debt and financial obligations. Your 2010 ARL was calculated based on 25 percent of your 2008 net own source revenues as reported in your 2008 FIR. Note that revenues for municipal electrical utilities are not included in the calculation of the ARL, in accordance with Public Sector Accounting Board (PSAB) guidelines. If you require any further information, please contact the appropriate Municipal Services Office of the Ministry of Municipal Affairs and Housing (list enclosed). Yours truly, l it(l~~ Trevor Bingler Director Enclosures r% f ! r CITY OF PICK =RING JANE 0 5 2010 CORPORATE SERVICES Ministry of Municipal Affairs and Housing 'Ministere des affaires municipales et du logement 48. 777 Bay Street, 777 rue Bay Toronto, Ontario. Toronto (Ontario) M5G 2E5 M5G 2E5 ANNUAL REPAYMENT LIMIT (UNDER ONTARIO REGULATION 403/02) MMA CODE: 10102 MUNID: 18001 MUNICIPALITY: Pickering C UPPER TIER: Durham R REPAYMENT LIMIT: C $12,244,601 The repayment limit has been calculated based on data contained in the 2008 Financial Information Return, as submitted to the Ministry. This limit represents the maximum amount which the municipality had available as of December 31, 2008 to commit to payments relating to debt and financial obligations. Prior to, the authorization by Council of a long term debt or financial obligation, this limit must be adjusted by the Treasurer in the prescribed manner. The limit is effective January 01, 2010. FOR ILLUSTRATION PURPOSES ONLY, the additional long-term borrowing which a municipality could undertake over a 5-year, a 10-year, a 15-year and a 20- year period is shown. Page: 01 of 03 Date Prepared: January 01, 2010 4 9 DETERMINATION OF ANNUAL DEBT REPAYMENT LIMIT MUNICIPALITY: Pickering C MMAH CODE: 10102 1.0 GROSS DEBT CHARGES 1.1 Principal SLC 74 3099 01 2,353,162 1.2 Interest SLC 74 3099 02 639,344 1.3 SUBTOTAL Add Lines 1. 1, 1.2 2,992,506 2.0 DEBT CHARGES ON O.C. W.A. PROVINCIAL PROJECT 2.1 Water Projects this municipality only SLC 74 2810 03 0 2.2 Water Projects - share of integrated project(s) SLC 74 2820 03 0 2.3 Sewer Projects - this municipality only SLC 74 2830 03 0 2.4 Sewer Projects - share of integrated project(s) SLC 74 2840 03 0 2.5 SUBTOTAL. Add Lines 2.1 thru 2.4 7701 3.0 PAYMENT IN RESPECT OF LONG TERM COMMITMENTS AND LIABILITIES SLC 42 6010 01 0 4.0 SUBTOTAL - DEBT CHARGES Add Lines 1.3,2.5,3.0 2,992,506 5.0 AMOUNTS RECOVERED FROM UNCONSOLIDATED ENTITIES 5.1 Electricity (Principal) SLC 74 3030 01 0 5.2 Electricity (Interest) SLC 74 3030 02 0 5.3 Gas and Telephone (Principal) SLC 74 3040 01 + SLC 74 3050 01 0 5.4 Gas and Telephone (Interest) SLC 74 3040 02 + SLC 74 3050 02 0 5.5 SUBTOTAL Add Lines 5.1 thru 5.4 0 6.0 PAYMENTS TO PROVINCE FOR DOWNTOWN REVITALIZATION PROGRAM LOANS SLC 42 5410 01 0 7.0 DEBT CHARGES FOR TILE DRAINAGE AND SHORELINE ASSISTANCE SLC 40 1850 02 + SLC 40 1850 08 0 8.0 SUBTOTAL - DEBT CHARGES TO BE EXCLUDED Add Lines 5.5,6.0,7.0 0 9.0 NET DEBT CHARGES 2,992,E6] Page: 02 of 03 Date Prepared: January 01, 2010 DETERMINATION OF ANNUAL DEBT REPAYMENT LIMIT 50 MUNICIPALITY: Pickering C MMAH CODE: 10102 10.0 TOTAL REVENUE FUND REVENUES SLC 10 9910 01 61,480,973 11.0 FEES FOR REPAYING THE PROVINCE FOR DOWNTOWN REVITALIZATION LOANS SLC 42 5410 01 0 12.0 FEES FOR TILE DRAINAGE AND SHORELINE ASSISTANCE SLC 12.1850 04 0 13.0 GRANTS FROM GOVERNMENT OF ONTARIO, GOVERNMENT OF CANADA AND OTHER MUNICIPALITIES 13.1 Ontario Grants SLC 10 0699 01 + SLC 10 0810 01 301,914 13.2 Canada Grants SLC 10 0820 01 41,585 13.3 Other Municipalities SLC 10 1099 01 189,046 13.4 SUBTOTAL Add Lines 13.1 thru 13.3 532,545 14.0 FEES AND REVENUES FOR JOINT LOCAL BOARDS FOR HOMES FOR THE AGED 0 15.0 NET REVENUE FUND REVENUES Lines 10 less Lines 11,12,13.4,14 60,948,428 16.0 25% OF NET REVENUE FUND REVENUE 15,237,107 17.0 ANNUAL REPAYMENT LIMIT 25% of Net Revenue Fund Revenues less Net Debt Charges 12,244;601 SLC denotes Schedule, Line, Column FOR ILLUSTRATION PURPOSES ONLY If the municipality could borrow at 7.0% or 9.0% annually, the annual repayment limit shown in Line 17 above would allow it to undertake additional long-term borrowing as follows: 7.0% Interest Rate: (a) 20 years @ 7.0% p.a. 129,719,477 (b) 15 years @ 7.0%p.a.. 111,522,773 (c) 10 years @ 7.0% p. a. 86,000,954 (d) 05 years @ 7.0% p.a. 50,205,282 9.0% Interest Rate: (a) 20 years @ 9.0% p.a. 111,775,399 (b) 15 years @ 9.0% p.a. 98,699,914 (c) 10 years @ 9.0% p.a. 78,581,658 (d) 05 years @ 9.0% p.a. 47,627,228 Page: 03 of 03 Date Prepared: January 01, 2010