HomeMy WebLinkAboutCST 21-12 90
Citi, co =$ Report To
Council
PICKERING G Report Number: CST 21-12
Date: July 9, 2012
From: Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: Approval of Debt Financing and Internal Loans for Council Approved
Capital Projects to be Undertaken During the Summer Recess of Council
Recommendation:
1. That Report CST 21-12 of the Director, Corporate Services & Treasurer regarding:
a) approval of debt financing for the West Short Boulevard Road Improvements -
Oklahoma Drive to Sunrise Avenue, Liverpool Road Reconstruction and Storm
Sewer Work - Annland Street to Ilona Park Drive, and Architectural Services for
the new Operations Centre projects to be undertaken during the summer
recess of Council; and
b) approval of internal loans for the Ultraviolet Disinfection System and Pipe
Repairs-Dunbarton Pool, and Library-Radio Frequency Identification System
(RFID) projects to be undertaken and awarded during the summer recess of
Council be received.
2. That Council authorize the Director, Corporate Services & Treasurer to finance the
projects as follows:
a) the sum of $330,000 for the West Short Boulevard Road Improvements -
Oklahoma Drive to Sunrise Avenue as provided for in the 2011 Capital Budget
be financed by the issue of debentures by the Regional Municipality of Durham
over a period not to exceed ten years at a rate to be determined;
b) the sum of $950,000 for the Liverpool Road Reconstruction and Storm Sewer
Work - Annland Street to Ilona Park Drive to be financed by the issue of
debentures by the Regional Municipality of Durham over a period not to
exceed ten years at a rate to be determined as provided for in the 2011 Capital
Budget;
Report CST 21-12 July 9, 2012
91
Subject: Approval of Debt Financing and Internal Loans Page 2
for Council Approved Capital Projects to be Undertaken
During the Summer Recess of Council
c) the sum of $1,475,000 for the Architectural Services for the new Operations
Centre as provided for in the 2012 Capital Budget be financed by the issuance
of debentures by the Regional Municipality of Durham or an internal loan for a
period not to exceed 20 years or from the proceeds of the sale of City owned
land;
d) the sum of up to $125,000 for the Ultraviolet Disinfection System and Pipe
Repairs-Dunbarton Indoor Pool as provided for in the 2012 Capital Budget be
financed by an internal loan for a period of up to 5 years or from other funds as
are available at the discretion of the Director, Corporate Services & Treasurer;
e) the sum of up to $250,000 for the Library-RFID as provided for in the 2012
Capital Budget be financed by an internal loan for a period of up to 5 years or
from other funds as are available at the discretion of the Director, Corporate
Services & Treasurer;
f) the annual repayment charges in the amount of approximately $350,000 be
included in the annual Current Budget for the City of Pickering commencing in
2013, continuing thereafter until the loans are repaid, and any financing costs
be paid out of the Current Budget; and
g) the Director, Corporate Services & Treasurer be authorized to take any actions
necessary at his discretion in order to give effect to the foregoing including the
issuance of internal loans in lieu of debt for any or all of the above projects;
4. That the Director, Corporate Services & Treasurer be authorized to provide any
additional funding required from sources available through the 2012 Budgets and
in the Financial Control Policy;
5. That the draft by-laws attached to this report be enacted; and
6. That the appropriate City of Pickering Officials be authorized to take necessary
action to give effect hereto.
Executive Summary: The 2011 Capital Budget included two projects for which
Tenders will be called and contracts awarded during the summer recess of Council.
These projects are West Short Boulevard Road Improvements - Oklahoma Drive to
Sunrise Avenue, and Liverpool Road Reconstruction and Storm Sewer Work - Annland
Street to Ilona Park Drive which require debt financing in the amount of $330,000 and
$950,000 respectively. Council approval for the debt financing is being requested now
to allow construction to be undertaken during the summer months while the adjacent
• Report CST 21-12 July 9, 2012
92
Subject: Approval of Debt Financing and Internal Loans Page 3
for Council Approved Capital Projects to be Undertaken
During the Summer Recess of Council
schools are closed. The Chief Administrative Officer (CAO) will then be able to approve
the awarding of the contracts during the summer recess.
The 2012 Capital Budget included three projects which were tendered and will be
awarded in the summer by the CAO, therefore, the financing needs to be approved by
Council now. These projects are Architectural Services for the new Operations Centre,
Ultraviolet Disinfection System and Pipe Repairs - Dunbarton Pool, and Radio
Frequency Identification System (RFID) for the Library. Debt financing and internal
borrowings were approved in the 2012 Capital Budget in the amounts of $1,475,000,
$125,000 and $250,000 respectively.
Financial Implications:
1. Approved Source of Funds
Roads and Operations Centre Capital Budget-Projects to be Debt-Financed
Location Project Code Source of Budget Required
Funds
West Short Boulevard 5320.1118.6250 Debt— 10 Year $330,000 $330,000
Road Improvements -
Oklahoma Drive to
Sunrise Avenue
Liverpool Road 5320.1120.6250 Debt — 10 Year 950.000 950,000
•
Reconstruction and
Storm Sewer Work -
Annland Street to Ilona
Park Drive
New Operations Centre- 5315.1201.6181 Debt - 20 Year 1,475,000 1,475,000
Consulting & Design
(Architectural Services)
Total Funds $2,755,000 $2,755,000
Report CST 21-12 July 9, 2012 3
Subject: Approval of Debt Financing and Internal Loans Page 4
for Council Approved Capital Projects to be Undertaken
During the Summer Recess of Council
2. Approved Source of Funds-2012
Dunbarton Pool & Library Capital Budget- Internal Loan Projects
Location Project Code Source of Funds Budget Required
Dunbarton Indoor Pool 5713.1204.6181 Internal Loan $125,000 $125,000
— Ultraviolet Disinfection - 5 Year
System and Pipe
Repairs Internal
Loan
Library RFID 5800.1203.6181 Debt — 5 Year 250,000 250,000
Total Funds $375,000 $375,000
The total annual repayment charges for all projects are estimated at $350,000. These
debt charges are anticipated to commence repayment in the 2013 Current Budget
adding approximately 0.75% to the property tax levy.
The Director, Corporate Services & Treasurer has updated the City's Annual
Repayment Limit and certified that this loan and the repayment thereof falls within the
Limit for the debt and financial obligations, and therefore, Ontario Municipal Board
approval is not required prior to City Council's authorization.
Discussion: As mentioned in the Executive Summary, approval of the debt
financing is being sought prior to.the issuance and acceptance of Tenders for the 2011
approved projects, which will occur during the summer recess of Council, to allow these
projects to be undertaken during the summer months while the adjacent schools are not
being used.
The three projects approved in the 2012 Budgets have been tendered and are in the
final stages of awarding. Due the timing of Council's recess, the normal reporting on
results of the tenders will not be in time for the July Council meeting. Debt financing is
being sought now allowing the CAO to approve the awarding of the contracts during the
summer.
The approved 5 year debt financing fo'r the Library RFID project will be changed to a 5
year internal loan for ease of financing. This is a replacement system for the current
Checkpoint RFID system. All items in the library collection will have an RFID tag
attached and this tag will be read by security gates and the circulation system. The
system acts as a security (theft deterrent) system for library materials and allows clients
Report CST 21-12 July 9, 2012
•
94
Subject: Approval of Debt Financing and Internal. Loans Page 5
for Council Approved Capital Projects to be Undertaken
During the Summer Recess of Council
to easily borrow items using self checkout workstations. The system improves
ergonomics for staff handling borrowing, inventory and returning of items and
significantly reduces the amount of staff hours required. The system will be installed at
the Central Library and Petticoat Creek branch. The awarding of the contract will be
subject to the approval of the Chief Executive Officer and the Library Board.
Debt financing for the architectural and management services for the new Operations
Centre is requested in case future land sales do not occur in a timely fashion to finance
this expenditure. The issuance of debt would only occur if such revenues or an internal
loan were not available.
The Chief Administrative Officer will, under previously provided Council authority, be
approving the awarding of the Tenders and the Director, Corporate Services &
Treasurer may provide financing under Section 07 of the Purchasing Policy subject to
being the lowest bid within Budget and the Financial Control Policy.
Attachments:
1. By-law to authorize the issuance of debentures in the amount of $330,000 for the
West Short Boulevard Road Improvements - Oklahoma Drive to Sunrise Avenue in
the City of Pickering
2. By-law to authorize the issuance of debentures in the amount of $950,000 for the
Liverpool Road Reconstruction and Storm Sewer Work - Annland Street to Ilona
Park Drive in the City of Pickering
3. By-law to authorize the issuance of debentures in the amount of $1,475,000 for the
Architectural Services for the new Operations Centre in the City of Pickering
Approved/Endorsed By:
Gillis A. Paterson, CMA
Director, Corporate Services & Treasurer
Report CST 21-12 July 9, 2012
9 5
Subject: Approval of Debt Financing and Internal Loans Page 6
for Council Approved Capital Projects to be Undertaken
During the Summer Recess of Council
Recommended for the consideration
of Pickering City Council
4-11 ot„xie Zq,20/2
T. Prevedel, P.Eng.
Chief Administrative Officer
ATTACHMENT#_TO REPORT /—/2
0A
The Corporation of the City of Pickering
By-law No.
Being a by-law to authorize the issuance of
debentures in the amount of $330,000 for
the West Shore Boulevard Road
Improvements - Oklahoma Drive to Sunrise
Avenue project in the City of Pickering
Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower-tier
municipality may pass by-laws respecting matters within the spheres of jurisdiction
described in that Section; and,
Whereas Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a
municipality may incur a debt for municipal purposes, whether by borrowing money or in
any other way; and,
Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a
lower-tier municipality in a regional municipality does not have the power to issue
debentures; and,
Whereas The Regional Municipality of Durham has the sole authority to issue
debentures for the purposes of its lower-tier municipalities including The Corporation of
the City of Pickering (the "City"); and,
Whereas the Tender for the West Shore Boulevard Road Improvements - Oklahoma
Drive to Sunrise Avenue project will be called and awarded during the summer recess
of Council; and,
Whereas Council of the City wishes to proceed with debentures financing prior to
tendering and awarding process for the West Shore Boulevard Road Improvements -
Oklahoma Drive to Sunrise Avenue project; and,
Whereas before the Council of the City authorizes the issuance of debentures for the
West Shore Boulevard Road Improvements - Oklahoma Drive to Sunrise Avenue
project, the Council of the City had the Treasurer update the City's Annual Repayment
Limit, the Treasurer calculated the estimated annual amount payable in respect of such
project and determined that such annual amount would not cause the City to exceed
the updated limit and, therefore, Ontario Municipal Board approval was not required
prior to City Council's authorization as per Section 401 of the Municipal Act, 2001, as
amended, and the regulations made there under;
•
97
By-law No.
Now therefore the Council of The Corporation of the City of Pickering hereby enacts as
follows:
1. That the City proceed with the debentures issue in the amount of $330,000 for the
West Shore Boulevard Road Improvements - Oklahoma Drive to Sunrise Avenue
project;
2. That the sum of $330,000 be financed by the issue of debentures by The Regional
Municipality of Durham over a period not to exceed ten years;
3. That the funds to repay the principal and interest of the debentures be provided
for in the annual,Current Budget for the City commencing in 2013 and continuing
thereafter until the loan is repaid.
By-law read a first, second and third time and finally passed this 9th day of July, 2012.
•
David Ryan, Mayor
Debbie Shields, City Clerk
• ATTACHMENT#?TO REPORT#1
98
The Corporation of the City of Pickering
By-law No.
Being a by-law to authorize the issuance of
debentures in the amount of $950,000 for
the Liverpool Road Reconstruction and
Storm Sewer Work - Annland Street to Ilona
Park Drive project in the City of Pickering
Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower-tier
municipality may pass by-laws respecting matters within the spheres of jurisdiction
described in that Section; and,
Whereas Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a
municipality may incur a debt for municipal purposes, whether by borrowing money or in
any other way; and,
Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a
lower-tier municipality in a regional municipality does not have the power to issue
debentures; and,
Whereas The Regional Municipality of Durham has the sole authority to issue
debentures for the purposes of its lower-tier municipalities including The Corporation of
the City of Pickering (the "City"); and,
Whereas the Tender for the Liverpool Road Reconstruction and Storm Sewer Work -
Annland Street to Ilona Park Drive project will be called and awarded during the
summer recess of Council; and,
Whereas Council of the City wishes to proceed with debentures financing prior to
tendering and awarding process for the Liverpool Road Reconstruction and Storm
Sewer Work - Annland Street to Ilona Park Drive project; and,
Whereas before the Council of the City authorizes the issuance of debentures for the
Liverpool Road Reconstruction and Storm Sewer Work - Annland Street to Ilona Park
Drive project, the Council of the City had the Treasurer update the City's Annual
Repayment Limit, the Treasurer calculated the estimated annual amount payable in
respect of such project and determined that such annual amount would not cause the
City to exceed the updated limit and, therefore, Ontario Municipal Board approval was
not required prior to City Council's authorization as per Section 401 of the Municipal
Act, 2001, as amended, and the regulations made there under;
9 9
By-law No.
Now therefore the Council of The Corporation of the City of Pickering hereby enacts as
follows:
1. That the City proceed with the debentures issue in the amount of $950,000 for the
Liverpool Road Reconstruction and Storm Sewer Work - Annland Street to Ilona
Park Drive project;
2. That the sum of $950,000 be financed by the issue of debentures by The Regional
Municipality of Durham over a period not to exceed ten years;
3. That the funds to repay the principal and interest of the debentures be provided for
in the annual Current Budget for the City commencing in 2013 and continuing
thereafter until the loan is repaid.
By-law read a first, second and third time and finally passed this 9th day of July, 2012.
David Ryan, Mayor
Debbie Shields, City Clerk
ATTACHMENT#3_TO REPORT#
100
The Corporation of the City of Pickering
By-law No.
Being a by-law to authorize the issuance of
debentures in the amount $1,475,000 for the
Architectural Services for the new Operations
Centre in the City of Pickering
Whereas Section 11 of the Municipal Act, 2001, as amended, provides that a lower-tier
municipality may pass by-laws respecting matters within the spheres of jurisdiction
described in that Section; and,
Whereas Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a
municipality may incur a debt for municipal purposes, whether by borrowing money or in
any other way; and,
Whereas Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a
lower-tier municipality in a regional municipality does not have the power to issue
debentures; and,
Whereas The Regional Municipality of Durham has the sole authority to issue
debentures for the purposes of its lower-tier municipalities including The Corporation of
the City of Pickering (the "City"); and,
Whereas the Tender for the Architectural Services for the new Operations Centre has
been tendered and will be awarded during the summer recess of Council; and
Whereas Council of the City wishes to proceed with debentures financing prior to the
awarding process for the Architectural Services for the new Operations Centre; and,
Whereas before the Council of the City authorizes the issuance of debentures for the
Architectural Services for the new Operations Centre, the Council of the City had the
Treasurer update the City's Annual Repayment Limit, the Treasurer calculated the
estimated annual amount payable in respect of such project and determined that such
annual amount would not cause the City to exceed the updated limit and, therefore,
Ontario Municipal Board approval was not required prior to City Council's authorization
as per Section 401 of the Municipal Act, 2001, as amended, and the regulations made
there under;
101
By-law No.
Now therefore the Council of The Corporation of the City of Pickering hereby enacts as
follows:
1. That the City proceed with the debentures issue in the amount of $1,475,000 for
the Architectural Services for the new Operations Centre;
2. That the sum of $1,475,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed twenty years;
2. That the funds to repay the principal and interest of the debentures be provided for
in the annual Current Budget for the City commencing in 2013 and continuing
thereafter until the,loan is repaid.
By-law read a first, second and third time and finally passed this 9th day of July, 2012.
David Ryan, Mayor
Debbie Shields, City Clerk