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Home My WebLink AboutL 11A-00{ ; . ,� OF P/� f• • � 41 REPORT TO COUNCII. FROM: Jene Burton Ciry Solicitor Gillis A. Paterson Director, Corporate Services and Treasurcr 093 DATE: March 8, 2000 REPORTNUMf3GR: LIIA/00 SUBJECT: Streamlining ojAdminislrafion ojProvinclal O,(Jences Acl (13il1108) - Provincial Offences dcf - Transfer - File: L959502 RGCOMMENDATIONS: That Report LI IA/00 be received und that Council: I. Gndorse the Consultant's rccommenJation thnt the Region of Durhnm be the Service Provider for the wurts administrntion and prosecution of procecdings pursuant to the S�ream!lning uJAdmtnls�ration oJ�he Prm�Licla! O,(%e�tce Ac/, 1998, S.O. 1998, c.4 (Qil! �ox�; 2. Endorsc thc rcvenuc shnring formula rccommcnded by thc seven Aren Trensurers Ihose being thc Town of Ajax, Township of Drock, Municipality of Clurington, City of Pickering, Township of Scugog, Toµn of Whitby, 7'ownship of Uxbridge und the Trcasurcr of thc Regionnl Municipalily of Durhnm; 3. Authoriu thc Mnyor and Clerk to exccute the Intcrmunicipal Service Agrcemenl and other rclated documenmtion necessnry ro finalize thc Provincia/ OJJence Acl transfer in a form sntisfactory to thc Ciry Solicitor nr.d Director, Corporate Services and Treasurcr, and 4. Dircct that such Intermunicipal Servicc Agrccment include, among other mutters, the estnblishment of n 7oint Boazd of ManngemenUCommittcc (made up of rcprcsenmtivcs from the municipnlities ond the Region) thnt will monitor the performance nnd activities of tte Scrvicc Providcr. ORIGIN: The Ministry of the Attorncy General — Provinclal O„(fences Acl Trnnsfer. AUTHORITY: S�ream!lntng ajAdminls�rafton ojProvfnclal Offences Ac�, 1998, 5.0. 1998, c.4 (llil! 108). FINANCIAL IMPLICATIONS: • Approximntc net rcvcmie for Durham Region for thc ycar 2000 • Cily of Pickering share (based on Arca Trcasurers' rccommendntion) • 1997/1998 Transfcr (to bc nllocnted to thc municipalitics oncc Transfer is completcd with thc Ministry of Attomcy Gcncral) �• 1998/1999 and 1999/2000 trnnsfer rcvenue fund (to bc nllocated to thc municipolidcs oncc Trensf r is completed with thc Ministry of Attomey General 53,828,083.00 729,884.00 2,000,000,00 Not Known RepoH to Council LI I/00 March 8, 2000 O(�� Subject: Bill 108, The Strcamlining of Administration Pagc 2 oP Provinciel Otlonces Act EXECUTIVE SUMMARY: Bill 108, The Slreamlining oj Adinlnlstraflon oJ Provincful OjJ'ences Act, /997, providcs thc framework for the trensfer of respnnsibility of lhe Provinciu! O,(J''ences Ac1("POA") administration end prosecution matters from the Province to the municipalities. In June, 1998, a POA Task Eorce (the "Task Force") wes fortned wilh representativcs Gom all municipalities in Durhnm and one Gom the Region of Durhnm. The purpose of the Tesk Force wns to gnther informntion and to explore the possibility of a coordinated npproach among the eight municipnlities and the Region. The Task Force retained PSTG Consulting (the "Consultant") ta provide a comprchensivc review of the nawre und operations of the POA ndministration for Durhnm (the "Oshuwa Court Servicc Arca") nnd to provide rccommendations regarding the preferced servicc dciivery option and revenue sharing. The Consultant's Final RepoA (thc "Report") wns submittcd on lnnuury 31, 2000 and recommends: • that the Region of Durhnm bc ihe Scrvicc Providcr for the Oshawn Court Service Area; nnd • o formula for rcvcnuc sharing. It should bc notcd that, the City oP Oshnwa docs not concur with thc Consultnnt's rccommendntion for the Servicc Providcr. In lighl of this, thc Consultant sets out in the Rcport: •"If thc POA 'fusk Force cnnnot rcach ngrecmcnl on thc preferrcd POA Service Provider, it is rccommended that their moving fonvnrd oction bc to prcpare and relcnse an lnrernrr! �encler for the intercstcd potentiul Scrvice Providcrs to bid. An indepcndent, objcctive third party would bc rcquircd to mnnogc thc proccss:' Thc Consultant furthcr aJvises that if thc Municipal und Rcgional Cauncils cannot rcuch n conscnsus respccting thc Scrvicc Providcr, thc Ministry may select n Scrvicc Providcr from n neighbouring sitc that has alrcady implcmented lhc transfer (i.e. York Rcgian). Thc Ministry of thc Attomcy Gcneml ("Ministry") will acccpt only onc submission from cach Court Servicc Arca and intcnds to complctc nll PO.1 transfcrs by Murch, 2001; submissions should bc dclivcred to the Ministry, at thc latest by Septembcr, 2000, Oncc n Service Provider is determincd evcry municipality, including the Region of Durhnm, as wcll as First Nutions, will be rcquircd to cnter into an Intertnunicipnl Scrvicc Agrccmcnt ("ISA"). This ISA will, nmong other Ihings, dewil the distribution of revenuc, the arrnngements regarding facilitics and technology and estnblish a Joint Bonrd of Mnnagcment (mnde up of rcprcscntativcs from thc municipalitics und thc Rcgion) that will monitor thc performancc nnd activitics of thc PO�f operations. BACKGROUND: At the present time, the Ministry administers the Provincial Offences Courts in Ontnrio und rctnins the associnted revcnue from fines. Thc POA sets out the processes to bc followed for administcring nnd prasecuting charges laid by police and other enforcemcnt nuthorities under provinciul stntutcs nnd municipal by-laws. On Junc I I, 1998, thc Provincc of Onwrio pnssed Icgislation known ns thc Sfreantlining oJ Adminlslrarlon ojProvincfal 0�,'"ences Ac� (It!!/ /0�. This Iegislation provldcs the framcwork for the uansfcrring, to municipelitics, of the administrativc responsibilitics und sciccted prosecutorisl functions for offcnces govemed by thc POA. , Report to Council Ll l/00 ., SubJect: Bill 108, Thc Streamlining of Adminisuatlon ofProvinaial OfTences Act Marcb 8, 2000 Page 3 09S 7'herc are ihree procedurai "streams" under the POA afTecttd by the Transfer: Part 1- Minor Reaulatorv Offences Administrative, prosecutorial end court support functions for Part 1 ol'fences (rcgulatory ticket offences - including speeding under the Highway Treffic Act); Ps_rt il - Parkina Infractions Administrativc, prosecutorial and court support functions for the remaindcr of Pnrt II uffenccs (parking tickets) not currently administered by municipalities; and Part III - Serious Re¢ulatorv Offences (which e court aocearence is mandatorv) Admmistralrve and court support functiuns for Part ill olTcnccs, which nrc o(Tences nrising from morc scrious circumstanccs, nnd/or wherc no sct fine exists for the offence anJ to which n court uppearance is mandntory. It should bc noted that ccrtnin Provinciul ministrics �vill continue to prosec.itc somc Purt I anJ Part III charges. The Transfcr dces not nffect existing municipal prosecutorinl functions, i.e. Ciq� rJ Pickcring's Parl !1 (Parkin� und Part /// (hy-luu� o,(jenres) x�i!! iwt be u,(%cicd by �his fru�ujer; nll rerenue col/ecled wi!! cominue l0 6e nlained by !he City. In 1998, the Task Force was convened for the 4shawa Court Servicc Areu to rcview and examine the informalion provided by the Ministry, Thc Tnsk Forcc wos compriscd of onc rcprcsrntativc from each of the eight municipalities and ane rcprcscntative from the Rcgian. Pursuant to nn RFP proccss, the Task Forcc rctaincd a Consultant lo providc u comprchcnsivc rcvicw of thc naturc and operotions of thc POA nJministrution for Oshawa Court Scrvice Arca nnd to providc recommcnJalions rcgarding thc prcfcrrcJ scrvicc dclivcry option nnd mcthod of rcvcnuc sharing. Service Provlder Optlons The Consultant rcvieweJ each municipality's nbility and willingness to provide Ihis scrvicc. Thc following options wcre cxnmincJ: • Rcgion of Durhnm • City of Oshnwn • City of Pickcring • Region of Durham logethcr with cithcr Pickering or Oshawn • Pickering and Oshnwa (joint) • Privatc Seclor firm Thc Consultant cvnluuted each option based on operational efliciency nnd cffcctive pertbnnar.cc. The quantitative evaluation rcsulted in thc Region of Durham achieving thc highest scorc, with the Region and Oshawa/Pickering being ucond, Oshawa as third and Pickering as fourth. All membcrs of the Task Forcc, with thc exception of Oshawa, erc in agrcemcnt thnt lhc Region of Durham should be the Service Providcr. Revenue FaNmatea Gross annual rcvenue estimatcs for the year 2000 are approximalcly S5,990,083.00. Gross amival rcvcnuc is projected lo be approximately 57,645,032.00 by thc year 2005. Rn�enue Sharing Optiona Five options of rcvenuc sharing werc examined: I 1. 2. 3. 4. S. ,_ ; . , _. . ;, populalion regional tex Icvy gcographic location equal shuro stratlfied cqual sharc 09� Report to CouncYl LI I/00 March e, 2000 ` SubJect: Bill 108, The Svwmlining ofAdministration Page 4 of Provinclal ORcncos Act The Consulwnt cxamined various options of rovcnue sharing with e view that the Service Providcr would receive no more or Iess than if it was not the Servicc Provider. This would minimize the competition between the municipalities to bc the Service Provider. The Servicc Provider would be compensatcd for providing ihe scrvice (through a management fee) and the balance would bc distributed bascd upon the revenue distribution modcl �letertnined in the ISA. The Consultant rccommends a manngemcnt fee of 36% be pnid to the Service Provider from the net revcnues received. The Consuitant advised thnt this method was used in most of the pilo� PO,f irnnsfer sites and givcn the uncertainty of the costs and rcvenues in the first �enr of operation, n mrnagement fec of 36% should pirovide the optimal solution. The Trcasurcrs involvcd in considering the revenue sharing models did not disngrec with this position. The Consuitnnt recommcnds thc "Stratified Equal Sharc" option for rcvcnuc distribution (S�h option). This oFtion providcs thnt all of the urban municipalitics (Pickcring, Ajax, Whitby, Oshawu, and Clarington) ns well as the Rcgion of Durham would each receive I S%of the nct revcnue nnd the northcm municipalities (Uxbridge, Eirock, Scugog and First Nations) �vould shnrc 10%. The Tusk Force prcscntcd thc five options to thc Arca Trcasurcrs for thcir rcview and considcration. Seven of thc eight Arcn Trcasurcrs nnd the Trcnsurer of thc Region concluded thut the five options for rcvenuc sharing including thc rccommcndcd "Strotificd Equal Sharc" option «�crc nut acceptablc ond endorscd another option, m�mely that net POA revcnuea, atter paymcnt ot costa to the Scrvice Providcr, ahould be aplit SO•/. to the Reqion and SOY. to the area municipalitie�. The area municiprlilies' a6rre would be distribulcJ amongri the eight lowcr tier municipalitie� based upon lasable as�es�ment. This option also allows for Ihc txncfits of the Rcgionnl sharc to flow back to thc local taxpaycrs of cnch �rca municipalily hascJ upon tuxublc asscssmcnt. Tlre Treo.rurrr jir IGe Cirv ofr«�k��;,,�; „�;re,u�• �„n��,�•�u��r d�� Rrgiona! Tar I.etiy" (1n<<op�i��n) approuch. even drnugh if provrded sli�hdp less rerenue.fi�r Pickering. .I.c a msull, u�h•oculing the 50:50 npprnach �ras rclulivcl�� srruigbr.fr�r�rnrd as i! u•us !he oplio�� ll�nf irotdd prm•i..'ir �he friiresr approuclr j�r n!I �xirmers. Note: Tlrc Crtv oj Oshniru docs nnt endorsr !!�c rcconmicndalion nmdc hp Ihr Aren Trcasurcrs, pr�jrrrin�; �he Shulifred Eq�ml Sharc oplrnr� rcrommcnded lrt� Ilic Ciinsulrnnl. In addition to collecting futun rcvcnucs, cach municipal partner «•ill reccivc thc uccumulatcd net rcvcnuc for its nrcn held in trust sincc Jnnuary I, 1998. Municipalilics will rcccivc thcsc funds at thc timc thc transfcr ogrccmcnt is finalizcd. Thc Accumulated nct rcvcnuc will lx shnrcd among municipalitics wilhin thc Oshawa Coun Scrvicc Arca nccording ta thc tcrms sct out in thc ISA. Therc arc approximntcly 52,0OO,OD0.00 in POA rc��enuc being hcld on account at ihe Rcgion for the 1997/1998 yenr end nnd there will be udditionnl POA rcvenue uttributnble to the Osh�wa Court Scrvicc Arca Gir thc ycars cnding 1998/1999 and 1999/2000. Costs Thc projectcd operoting costs for the ycar 2R00 is approximntely 52,162,000.00. Thesc cosu includc salnries/bcncfits; facilities; ndditionnl cour'.room and support; technology nnd provincial chargebnck costs. Therc will nlso be trnnsitional custs of approximately 5500,000.00 incurred in thc transfcrring thc PO.1 ndministration from thc Provincc to thc Oshawa Court Scrvicc Arca's designatcd Scrvicc Provider. Such costs mey include space acquisition; officc cquipment; supplics; ctc. Thcrc moy nlso bc additionol cosls for acquiring tcchnology for "mobile" dala input by cnforccment ngencics. /11 hile rhla cnsr fs nor srrlcrly �x,rr oJrhe POA dawnloadinR prncess, i� reprrsenrs n�x�renria! impm�rnirnt ojlhe curren! process �Jenjorcement and adminis�ra�inn). It should be noted, that the Consulwnt's Report stntes Ihnt the accuracy of Ihe cost nnd rcvenuc estimatcs is considcrcd to bc high. If thc numbcr of chnrgcs wcrc to dccrcau significnntly, thc nct revenucs would expericncc a corresponding decreasc. Ilowevcr, duc to thc cstimatcJ mntgin betwcen current costs and rcvcnucs nnd Poturc cnforccment pinns (ic. Durham Rcgional Police), the risk of expericncing e finencial loss in opcmtions is considercd low. � , RepoR to Council W 1/00 � SubJat: Bill 108, The Strcamlining of Administret(on of Provincial Offencea Act Conclu�ion March 8, 2000 Page 5 � 4 7 We recommend that Council support the Rcgion of Durham as the Service Provider. Wc furiher recommend thnt the revenue sharing option fnvoured by ►hc seven Arca Treasurers and Ihc Treasumr for the Region be supported. Once a Service Provider i� detertnined, every municipality, including ths Region of Durham will bc requireJ to enter into an ISA. This ISA will, umong other things, detail the distribution of rcvenuc, thc arrangements regarding facilitics and technology and establish a Joint Board of Managcmcnt (mnde up of representatives from the municipalitics and the Region) that will monitor the perFortnancc and activities of the POA operations. It should be noted that if Municipal end Regional Councils connot rcach a consensus rcspecting the Servicc Provider, the Ministry may select a Service Provider from n neighbouring site that has already implemented the trnnsfer (i.e. York Region). Please nnfe, alf background docwnenration relaling ro rhis marter l�as been sent ro Council under separute cover jor lnJorma�ion pur�ro.res. ATTACHMENTS: Revenuc Shuring Uption Chnrt ns rccommendcd by the Arca Trcnsurcrs und Rcgional Trcnsurcr. Prepered By: � ' iUl1'�/ Denisc f3yc� �A.alf/JJ Jo Pnrsons Attachments Capy: Chicf Administrativc Officcr Ciry Clerk Director, Operntions and Emergency Services Director. Plunning and Development Approvfd / GnJorsc Dy: / lonc Burton � ✓ Gillis A. Pnterson Recommended for the consideration of Pickering Ciry Cou il � �� ..c .i.t � i. h as J. inn, ief Admi ' tive O icer ��v� �� L�� .. s� �� 5� �� . � ,� � �5 �� .�� . �,� ��s � � m 3 ��. d` �'' �� a �� N� � � � �� + � �Ng � '� � 8 � � �:� .�.�� v � �a��. �� $ �� .�.Q� . �� .. .�. . �1� � - o��ttlaOd3ll01—("#1N3WH�V11V � �� s -� �� g �� 7 @ � 0� 9 ii � � .� �. � � � � �o �� : �a Z � 0 a �� m �. } m .� � � � � � ' C si. B. .� � � � � 0 3 e• 0 S �. �• SbU .:. . . . : '+�4..�. �'. . . . - . . .._ _ ..