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September 23, 2002
Finance & Operations Committee Meeting Agenda Monday, September 23, 2002 1:30 P.M. ADOPTION OF MINUTES Meeting of June 24, 2002 (11) 1. DELEGATIONS Sgt. Joe Maiorano, representing the Durham Regional Police Business Plan Review Committee, will present an update to the Committee concerning the status of the 2002-2004 Business Plan. (,i) 1. MATTERS FOR CONSIDERATION OPERATIONS & EMERGENCY SERVICES REPORT OES 036-02 MANAGEMENT AGREEMENT WITH CLAREMONT LIONS CLUB CLAREMONT COMMUNITY CENTRE PAGE 1-16 OPERATIONS & EMERGENCY SERVICES REPORT OES 035-02 LEASE AGREEMENTS LEASE NO.: 614201-1 - DON BEER MEMORIAL PARK LEASE NO.: 614658-1 - BROUGHAM COMMUNITY CENTRE LEASE NO.: 614280-2 - MUSEUM LEASE NO.: 614725-1 - B~QUGHAM PARKETTE 17-57 OPERATIONS & EMERGENCY SERVICES REPORT OES 034-02 FRENCHMAN'S BAY WATERSHED REHABILITATION PROJECT MEMORANDUM OF AGREEMENT 58-65 (IV) STAFF ITEMS FOR DISCUSSION (V) OTHER BUSINESS Finance & Operations Committee Meeting Agenda Monday, September 23, 2002 1:30 P.M. FIVE MINUTE RECESS CORPORATE SERVICES REPORT 19-02 2002 FINAL TAX DUE DATES FOR COMMERCIAL, INDUSTRIAL AND MULTI-RESIDENTIAL REALTY TAX CLASSES AND TAX RATES 66-76 CORPORATE SERVICES REPORT 16-02 ESTABLISHMENT OF THE ONTARIO TRANSIT RENEWAL RESERVE FUND (OTRRF) 77-86 CORPORATE SERVICES REPORT 20-02 CASH POSITION REPORT AS AT JUNE 30, 2002 87-94 CORPORATE SERVICES REPORT 21-02 FORMAL QUOTATIONS - QUARTERLY REPORT FOR INFORMATION 95-98 CORPORATE SERVICES REPORT 17-02 MUNICIPAL PERFORMANCE MEASUREMENT PROGRAM - PROVINCIALLY MANDATED PUBLIC REPORTING OF PERFORMANCE MEASURES 99-121 CORPORATE SERVICES REPORT 31-02 SERVICE CONTRACT FOR E.GOVERNMENT SERVICE - "PAYTICKETS"- PAYING PARKING TICKETS ON-LINE 122-129 RECOMMENDATION OF THE FINANCE & OPERATIONS COMMITTEE DATE MOVED BY That Report OES 36-02 be received by Council; and That a by-law be enacted to authorize the execution of a renewal management agreement with the Claremont Lions Club to continue to provide management services to the Corporation at the Claremont Community Centre for a three year period. REPORT TO THE FINANCE & OPERATIONS COMMITTEE Report Number: OES 36-02 Date: September 11, 2002 From: Stephen Reynolds Division Head, Culture & Recreation Subject: Management Agreement with Claremont Lions Club Claremont Community Centre File: LS2004 Recommendation: 1. That Report OES 36-02 be received by Council and; that A by-law be enacted to authorize the execution of a renewal management agreement with the Claremont Lions Club to continue to provide management services to the Corporation at the Claremont Community Centre for a three year period. Executive Summary: The Claremont Lions Club have an existing Management Agreement for the Claremont Community Centre. The Claremont Lions Club have requested to renew this agreement for the next three years. The Operations & Emergency Services Department recommend that a renewal agreement be initiated with the Claremont Lions Club. Financial Implications: The City will receive 25% of the revenues generated from the Lions Club's use of the facility every Saturday and on New Year's Eve throughout the term. Background: On August 8, 2002, Council enacted By-law 5726~02 to authorize the execution of a Management Agreement with the Claremont Lions Club for the operation of the Claremont Community Centre. The Claremont Lions Club have requested to renew this agreement for the next three years. Report OES 36-02 Date: Subject: Management Agreement with Claremont Lions Club September 11,2002 Page 2 03 Although the City of Pickering has not received revenue from the Claremont Lions Club in the previous agreement, the Lions Club have indicated their willingness to commence tracking Saturday rentals at the Claremont Community Centre. The Claremont Lions Club have agreed to pay the City 25% of the gross revenue collected for Saturday use throughout the Term. The Director of Operations & Emergency Services and Division Head, Culture & Recreation recommend that a renewal agreement be initiated with the Claremont Lions Club. Enactment of the draft by-law attached will authorize the execution of a renewal lease for a three year period in the form attached hereto as Schedule A. (Authority - Municipal Act, R.S.O. 1990, c. M.45, Sections 191 (1) and 207(58)). Attachments: 1. Draft By-law. 2. Schedule A. Prepared By: Steph ne,q~Re~.yholds Division Read, Culture & Recreation Director, Operations & ETri'ergency Services SR:Ig Attachment Copy: Chief Administrative Officer Director, Corporate Services & Treasurer City Solicitor Recommended for the consideration of Pickering City Council ,, Tbo"'r~,~ J. Qui~n, Chi~ Adm~ve O~cer 04 ATTACHI,'IENT :#_ J TO P,,EPOP, T #_'C;2_~ ~ -'~ -~ C) 2_ THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. Being a by-law to authorize the execution of a Management Agreement between The Corporation of the City of Pickering and the Claremont Lions Club respecting the continued management of the Claremont Community Centre by the Claremont Lions Club. WHEREAS, the City owns and operates a community centre known as the Claremont Community Centre in the Hamlet of Claremont in the City of Pickering; and WHEREAS, the Claremont Lions Club has provided its services, on certain terms and conditions to the City as manager of the community centre and it is desirable to provide for the continued provision of such services; and WHEREAS, pursuant to the provisions of paragraph 207.58 and 191 of the Municipal Act, R.S.O. 1990, chapter M.45, as amended, the Council of The Corporation of the City of Pickering may pass by-laws for, among other things, maintaining, operating and managing community recreation centres; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: The Mayor and Clerk are hereby authorized to execute a Management Agreement in the form attached hereto as Schedule A, between the Corporation of the City of Pickering and the Claremont Lions Club respecting the continued management of the Claremont Community Centre by the Claremont Lions Club. BY-LAW read a first, second and third time and finally passed this 7th day of October, 2002. Wayne Arthurs, Mayor Bruce Taylor, Clerk SCHEDULE THIS MANAGEMENT AGREEMENT made October 7, 2002, pursuant to the provisions of sections 191 (1) and 207.58 of the Mun/c/pal Act, R.S.O. 1990, chapter M.45, B ETW E E N: THE CLAREMONT LIONS CLUB herein called the "Club" OF THE FIRST PART, - and - THE CORPORATION OF THE CITY OF PICKERING herein called the "City" OF THE SECOND PART. WHEREAS, the City owns and operates a multi-facility community centre known as the Claremont Community Centre, in the Hamlet of Claremont, in the City of Pickering, hereinafter referred to as the "Community Centre" for the benefit of its citizens, particularly those residents in the Hamlet of Claremont and surrounding area; WHEREAS, the Club has provided certain management services to the City with respect to other City-owned facilities located within the Hamlet of Claremont since November 5, 1979 and wishes to also provide management services at the Community Centre; NOW THEREFORE, THIS AGREEMENT WITNESSETH THAT, in consideration of the mutual covenants and agreements herein contained and. the sum of Two (2.00) Dollars paid by each party to the other (the receipt and sufficiency of which is hereby acknowledged), subject in the terms and conditions hereinafter set out, the Parties hereto agree as follows: 1. DEFINITIONS (1) For the purpose of this Agreement "Premises" shall mean: (a) that portion of the Community Centre being composed of the multi-purpose hall, the kitchen, the meeting room and adjacent hallways, washroom facilities and public changerooms. (2) For the purpose of this Agreement, "Management Services" shall mean: (a) the leasing of the Premises, or parts thereof, from time to time during the Term of this Agreement, to non-commercial leasees and third parties for non-profit functions, 06 TERM charity events, receptions and any other City-approved purposes in accordance with the rental rates agreed to between the parties hereto in accordance with paragraph 7(e) of this agreement; (b) the provision of caretaking and general maintenance services to the Premises at the Club's expense, together with the provisions of all necessary cleaning and maintenance supplies such as cleaning products, related paper products and cleaning equipment; (c) snow removal on all sidewalks, walkways and all other areas of pedestrian passage at the Community Centre. The Club shall have use of the Premises and shall provide the City with Management Services to the satisfaction of the City for a three-year Term (the "Term") commencing on November 1, 2002 and ending on October 31,2005, unless earlier terminated. MAINTENANCE (a) The City shall be responsible for all inspections and preventative maintenance with respect to the exterior of the Community Centre, the heating equipment, transformer, parking lot and lights, exterior landscaping and the physical structure of the building provided, however, that the Club shall be responsible for any damages or costs incurred due to the misuse or negligence of the Club, its employees, invitees, servants, agents, or others under its control and the Club shall pay to the City on demand the expense of any repairs including the City's reasonable administration charge necessitated by such negligence or misuse. (b) The City shall be responsible for all day-to-day operating expenses of the Premises including, hydro, water, heating, air conditioning, sewage disposal (including periodic emptying of the septic tank) and garbage removal. The City shall provide grass cutting and landscaping services and snow removal for the parking lot of the Community Centre only. The Club shall be responsible for snow removal on all sidewalks, walkways and other areas of pedestrian passage at the Community Centre. SECURITY The Club shall be responsible for the security of the Premises. The Club shall be responsible for any costs incurred or arising due to the misuse or negligence of the Club, its employees, invitees, servants, agents or others under its control and the Club shall pay to the City on demand the expense of any repairs including the City's reasonable administration charges necessitated by such negligence or misuse. The Club will ensure that no copies of the keys to the Premises are made without the prior written consent of the City. 2 07 CITY USE OF PREMISES (a) Notwithstanding any other provision of this Agreement, the City and the Club acknowledge and agree that the City will have first right of refusal to use the Premises, for the City's Culture and Recreation Division programs including the Claremont and District Community Association program purposes or for any other City purpose Monday through Thursday from 7:00 a.m. to 11:00 p.m. throughout the Term, at no cost to the City. This right will be exercised by the City on an "as needed" basis, on terms to be arranged between the parties hereto. The City agrees to provide the Club with the specific dates and times that the Premises will be required for City use, or for use by the Claremont and District Community Association, at least one month in advance of the required date. The Club will not be entitled to any rental fees or other remuneration associated with the said use of the Premises by the City or by the Claremont and District Community Association. (b) The parties further agree that the City will have exclusive use of the Premises for City programs every Friday from 5:00 p.m. to 12:00 midnight at no cost to the City. USE & OCCUPANCY OF PREMISES BY THE CLUB The Club agrees to use, and ensure that the use of the Premises is in accordance with the City's Alcohol Management Policy and the City's rules and regulations which are attached hereto as Schedules A and B. (a) Sharing of Use with Community Association The parties herein acknowledge and agree that the Club shall have the exclusive use of the Premises every Saturday throughout the year and New Year's Eve of each year throughout the Term; (b) Appearance of Premises The Club agrees to maintain and operate the Premises so that they shall always be of good appearance and suitable for the proper operation of the uses required to be carried on therein and comparable with the standards of the best such uses, and in so doing, to keep both the interior and exterior of the Premises clean, orderly and tidy, and clear of all refuse, snow and ice; (c) By-Laws The Club agrees to comply, at its own expense, with all Municipal, Federal and Provincial, sanitary, fire, health and safety laws, regulations and requirements pertaining to the occupation and use of the Premises, the condition of the improvements, trade fixtures, furniture and equipment installed by or on behalf of the Club therein and the making by the Club of any repairs, changes or improvements 08 therein, which repairs, changes or improvements, shall be pre-approved by the City in accordance with the provisions of Clause 3 herein. RENTAL REVENUES (a) The Club shall pay to the City a fee equal to 25% of the gross revenue collected by the Club for their use of the Premises on Saturdays throughout the Term. (b) The Club shall retain 100% of the rental fees recovered for the Premises from all leasees other than the City and the Claremont and District Community Association, Monday through Thursday from 12:00 noon to 12:00 midnight for the months of September to June and Monday through Friday 6:00 p.m. to 12:00 midnight for the months of July and August. (c) The applicable fee, as set out in 7(a) above, shall be paid by the Club to the City, in lawful money of Canada, on March 31st, June 30th, September 30th and December 1st of each year throughout the Term and at the address of the City set out in section 16(3)(a) or at such other place as the City shall from time to time designate. (d) The Club shall submit a written report to the City quarter-yearly which shall include financial statements setting out the details of the funds received by the Club from the rental of the Premises. (e) The Club agrees that it shall only charge such fees for the rental of the Premises at the rate that is approved by the City from time to time. The City and the Club shall establish the approved rental fee rate yearly throughout the Term. GENERALCOVENANTS (1) The City covenants with the Club: (a) for quiet enjoyment; and (b) to observe and perform all covenants and obligations of the City herein. (2) The Club covenants with the City: (a) to pay rent; and (b) to pay all applicable taxes, including business taxes and goods and services taxes; and (c) to observe and perform all covenants and obligations of the Club herein. 4 10. PROHIBITION AGAINST ASSIGNMENT AND SUB-LETTING 09 The Club shall not assign this Management Agreement without the prior written consent of the City which consent may be arbitrarily withheld. LEASEHOLD IMPROVEMENTS & TRADE FIXTURES (1) Definition of Leasehold Improvements (2) (3) For purposes of this Management Agreement, the Term "Leasehold Improvements" includes without limitation all fixtures, improvements, installations, alterations and additions from time to time made, erected or installed by or on behalf of the Club in or on the Premises, and whether or not moveable, with the exception of furniture and equipment not of the nature of fixtures. Installation of Improvements & Fixtures The Club shall not make, erect, install or alter any Leasehold Improvements or trade fixtures, including lighting, in or on the Premises without having first obtained the City's written approval. The Club's request for any approval hereunder shall be in writing and accompanied by an adequate description of the contemplated work and, where appropriate, working drawings and specifications thereof. All work to be performed in the Premises shall be performed by competent contractors and subcontractors of whom the City shall have approved, such approval not to be unreasonably withheld. All such work shall be subject to inspection by and the reasonable supervision of the City, and shall be performed in accordance with any reasonable conditions or regulations imposed by the City and completed in a good and workmanlike manner in accordance with the description of work approved by the City. Liens & Encumbrances on Improvements & Fixtures In connection with the making, erection, installation or alteration of Leasehold Improvements and trade fixtures and all other work or installations made by or for the Club in or on the Premises, the Club shall comply with all the provisions of the Construction Lien Act, and other statutes from time to time applicable thereto, including any provision requiring or enabling the retention by way of hold-back of portions of any sums payable, and except as to any such hold-back shall promptly pay all accounts relating thereto. The Club shall not create any mortgage, conditional sale agreement or other encumbrance in respect of its Leasehold Improvements or, without the consent of the City, with respect to its trade fixtures nor shall the Club take any action as a consequence of which any such mortgage, conditional sale agreement or other encumbrance would attach to the Premises or any part thereof. If and whenever any lien for work, labour, services or materials supplied to or for the Club or for the cost of which the Club may be in any way liable or claims therefore shall arise or be filed or any such mortgage, conditional sale agreement or other encumbrance shall attach, the Club shall within 20 days after receipt of notice thereof procure the discharge thereof, l0 11. including any certificate of action registered in respect of any lien, by payment or giving security or in such other manner as may be required or permitted by law, and failing which the City may in addition to all other remedies hereunder avail itself of its remedy under section 12 hereof and may make any payments required to procure the discharge of any such liens or encumbrances, shall be entitled to be reimbursed by the Club as provided in section 12, and its right to reimbursement shall not be affected or impaired if the Club shall then or subsequently establish or claim that any lien or encumbrance so discharged was without merit or excessive or subject to any abatement, set-off or defence. This subsection shall not prevent the Club from mortgaging or encumbering its chattels, furniture or equipment not of the nature of fixtures. (4) Additions and Alterations The Club shall not make any alterations or additions to the Premises without the prior written consent of the City's Director of Operations & Emergency Services. Any such pre-approved alterations, additions, or fixtures shall be added to the City's inventory of fixtures, and shall form part of the City's property. The Club acknowledges that it has no claim to any such alteration, addition or fixture upon the Termination of this Agreement. INSURANCE & LIABILITY (1) Club's Insurance The Club shall take out and keep in force during the Term: (a) comprehensive insurance of the type commonly called general public liability, which shall include coverage for personal liability, contractual liability, Club's legal liability, non-owned automobile liability, bodily injury, death and property damage, all on an occurrence basis with respect to the Club's use and occupancy of the Premises, with coverage for any one occurrence or claim of not less than $2,000,000, or such other amount as the City may reasonably require upon not less than six months notice at any time during the Term, which insurance shall include the City as a named insured and shall protect the City in respect of claims by the Club as if the City were separately insured; and (b) insurance against such other perils and in such amounts as the City may from time to time reasonably require upon not less than 90 days written notice, such requirement to be made on the basis that the required insurance is customary at the time for prudent tenants of similar properties. All insurance required to be maintained by the Club hereunder shall be on Terms and with insurers to which the City has no reasonable objection. Each policy shall contain a waiver by the insurer of any rights of subrogation or indemnity or any other claim over to which the insurer might otherwise be entitled against the City or the agents or employees of the City, and shall also contain an undertaking by the insurer that no material change adverse to the City or the Club will be made, and the policy will not lapse or be cancelled, except after not less than thirty days written notice to the City of the intended change, lapse or cancellation. The Club shall furnish to the City, if and whenever requested by it, certificates or other evidences acceptable to the City as to the insurance from time to time effected by the Club and its renewal or continuation in force, together with evidence as to the method of determination of full replacement cost of the Club's Leasehold Improvements, trade fixtures, furniture and equipment, and if the City reasonably concludes that the full replacement cost has been underestimated, the Club shall forthwith arrange for any consequent increase in coverage required hereunder. If the Club shall fail to take out, renew and keep in force such insurance, or if the evidences submitted to the City pursuant to the preceding sentence are unacceptable to the City or no such evidences are submitted within a reasonable period after request therefore by the City then the City may give to the Club written notice requiring compliance with this section and specifying the respects in which the Club is not then in compliance with this section. If the Club does not, within 72 hours or such lesser period as the City may reasonably require having regard to the urgency of the situation, provide appropriate evidence of compliance with this section, the City may, but shall not be obligated to, obtain some or all of the additional coverage or other insurance which the Club shall have failed to obtain, without prejudice to any other rights of the City under this Lease or otherwise, and the Club shall pay all premiums and other expenses incurred by the City in that connection as additional rent pursuant to section 12 hereof. (2) Limitation of City's Liability The City shall not be liable for any bodily injury or death of, or loss or damage to any property belonging to the Club or its employees, invitees or licensees or its guests, or to any other person in, on or about the Premises. (3) Club's Indemnification of City The Club shall indemnify and save harmless the City in respect of: (a) all actions, causes of actions, suits, claims and demands whatsoever, which may arise either directly or indirectly by reason of any act or omission of the Lessee, its servants, licensees, invitees, members, guests, contractors or agents in the use or occupation of the Premises; (b) any loss, cost, expense or damage suffered or incurred by the City arising from any breach by the Club of any of its covenants and obligations under this Management Agreement; and (c) all costs, expenses and reasonable legal fees that may be incurred or paid by the City in enforcing against the Club the covenants, agreements and representations of the Club set out in this Management Agreement. 12. 13. CITY'S ACCESS (1) The Club shall be responsible for minor repairs to the Premises, at its expense, reasonable wear and tear, fire damage, lightning damage and storm damage excepted. (2) The City shall be permitted at any time and from time to time to enter and to have its authorized agents, employees and contractors enter the Premises for the purposes of inspection, maintenance or making repairs, and the Club shall provide free and unhampered access for the purpose, 'and shall not be entitled to compensation for any inconvenience, nuisance or discomfort caused thereby, but the City in exercising its rights hereunder shall proceed to the extent reasonably possible so as to minimize interference with the Club's use and enjoyment of the Premises. DELAY & NON-WAVER (1) Unavoidable Delay Except as herein otherwise expressly provided, if and whenever and to the extent that either the City or the Club shall be prevented, delayed or restricted in the fulfillment of any obligation hereunder in respect of the making of any repair, the doing of any work or any other thing, other than the payment of rent or other monies due, by reason of: (i) strikes or work stoppages; (ii) inability to obtain any material, service, utility or labour required to fulfill such obligation; any statute, law or regulation of, or inability to obtain any permission from, any government authority having lawful jurisdiction preventing, delaying or restricting such fulfillment; or (iv) other unavoidable occurrence, the time for fulfillment of such obligation shall be extended during the period in which such circumstances operates to prevent, delay or restrict the fulfillment thereof, and the other party shall not be entitled to compensation for any inconvenience, nuisance or discomfort thereby occasioned. (2) Waiver If either the City or the Club shall overlook, excuse, condone or suffer any default, breach or non-observance by the other of any obligation hereunder, this shall not operate as a waiver of such obligation in respect of any continuing or subsequent default, breach or non-observance, and no such waiver shall be implied but shall only be effective if expressed in writing. 14. (2) (3) REMEDIES OF CITY In addition to all rights and remedies of the City available to it in the event of any default hereunder by the Club through improper compliance or non-compliance with any obligation arising either under this or any other provision of this Management Agreement or under statute or the general law, (a) the City shall have the right at all times to remedy or attempt to remedy any default of the Club, and in so doing may make any payments due or alleged to be due by the Club to third parties and may enter upon the Premises to do any work or other things therein, and in such event all expenses of the City in remedying or attempting to remedy such default shall be payable by the Club to the City as additional rent forthwith upon demand; (b) the City shall have the same rights and remedies in the event of any non- payment by the Club of any amounts payable by the Club under any provision of this Management Agreement as in the case of a non-payment of rent; and (c) if the Club shall fail to pay any rent or other amount from time to time payable by it to the City hereunder promptly when due, the City shall be entitled, if it shall demand it, to interest thereon at a rate of three per cent per annum in excess of the minimum lending rate to prime commercial borrowers from time to time current at the City's bank from the date upon which the same was due until actual payment thereof. Remedies Cumulative The City may from time to time resort to any or all of the rights and remedies available to it in the event of any default hereunder by the Club, through improper compliance or non-compliance with any obligation arising either under any provision of this Management Agreement or under statute or the general law, all of which rights and remedies are intended to be cumulative and not alternative, and the express provisions hereunder as to certain right and remedies are not to be interpreted as excluding any other or additional rights and remedies available to the City by statute or the general law. Right of Re-Entry on Default or Termination If and whenever the rent hereby reserved or other monies payable by the Club or any part thereof shall not be paid on the day appointed for payment thereof, whether lawfully demanded or not, and the Club shall have failed to pay such rent or other monies within five (5) business days after the City shall have given to the Club notice requiring such payment, or if the Club shall breach or fail to observe and perform any of the covenants, agreements, provisos, conditions and other obligations on the part of the Club to be kept, observed or performed hereunder, or if this Management Agreement shall have become Terminated pursuant to any provision hereof, or if the City shall 15. (4) have become entitled to Terminate this Management Agreement and shall have given notice Terminating it pursuant to any provision hereof, then and in every such case it shall be lawful for the City thereafter to enter into and upon the Premises or any part thereof in the name of the whole and the same to have again, repossess and enjoy as of its former estate, anything in this Management Agreement contained to the contrary notwithstanding. Termination & Re-Entry (a) If and whenever the City becomes entitled to re-enter upon the Premises under any provision of this Management Agreement the City, in addition to all other rights and remedies, shall have the right to Terminate this Management Agreement forthwith by leaving upon the Premises notice in writing of such Termination. (b) The Term of this Agreement may be terminated by either Part upon six month's notice to the other in writing. (c) The Term of this Agreement may be terminated by the City upon ten day's notice to the Club in writing in the event that the insurance required to be provided in section 11 of this Agreement is not provided or not kept in force. (d) In the event that this Agreement is terminated by the City pursuant to subsection (a), (b) or (c) above, the City shall honour any bookings previously made with the Club for the use of the Premises after the effective date of termination. (5) Payment of Rent, etc. on Termination Upon the giving by the City of a notice, in writing, terminating this Management Agreement, whether pursuant to this or any other provision of this Management Agreement, this Management Agreement and the Term shall Terminate, rent and any other payments for which the Club is liable under this Management Agreement shall be computed, apportioned and paid in full to the date of such Termination, and the Club shall immediately deliver up possession of the Premises to the City, and the City may re-enter and take possession of them. IMPROPER USE OF PREMISES;BANKRUPTCY In case without the written consent of the City the Premises shall be used for any purpose other than that for which they were leased, or occupied by any persons whose occupancy is prohibited by this Management Agreement, or if the Premises shall be vacated or abandoned, or remain unoccupied for fifteen (15) days or more while capable of being occupied; or if the balance of the Term or any of the goods and chattels of the Club shall at any time be seized in execution or attachment, or if the Club shall make any assignment for the benefit of creditors or any bulk sale, become bankrupt or insolvent or take the benefit of any statute now or hereafter in force for bankrupt or insolvent debtors, then in any such case the City may at its l0 16. option Terminate this Management Agreement by leaving upon the Premises notice in writing of such Termination and thereupon, in addition to the payment by the Club of rent and other payments for which the Club is liable under this Management Agreement, rent for the current month and the next ensuing 3 months shall immediately become due and paid by the Club. MISCELLANEOUS PROVISIONS (1) Registration of Manaqement Agreement Neither the Club nor the City shall register this Management Agreement or a notice of this Management Agreement. (2) Management Agreement Constitutes Entire Aqreement (3) (4) There are no covenants, representations, warranties, agreements or conditions express or implied, collateral or otherwise forming part of or in any way affecting or relating to this Management Agreement save as expressly set out in this Management Agreement; this Management Agreement constitutes the entire agreement between the City and the Club and may not be modified except as herein explicitly provided or except by agreement in writing executed by the City and the Club. Notices Any notice required or contemplated by any provision hereof shall be given in writing, and (a) if to the City, either delivered to the City Clerk personally or mailed by prepaid registered mail addressed to The City Clerk, The Corporation of the City of Pickering, Pickering Civic Complex, One The Esplanade, Picketing, Ontario L1V 6K7; and (b) if to the Club, either delivered to The Claremont Lions Club, c/o the President or Secretary, at 1722 Joseph Street, Claremont, Ontario, L1Y 1B5 Every such notice shall be deemed to have been given when delivered or, if mailed as aforesaid, upon the third day after the day it is mailed. Either party may from time to time by notice in writing to the other, designate another address in Canada as the address to which notices are to be mailed to it. Interpretation All of the provisions of this Management Agreement are to be construed as covenants and agreements as though words importing such covenants and agreements were used in each separate provision hereof, and the titles and captions appearing for the provisions of this Management Agreement have been inserted as a matter of 1! 1.6 (5) convenience and for reference only and in no way define, limit or enlarge the scope or meaning of this Management Agreement or of any provision hereof. Extent of Manaqement Aqreement Obliqations This Management Agreement and everything herein contained shall enure to the benefit of and be binding upon the respective heirs, executors, administrators and other legal representatives, as the case may be, of each party hereto, and every reference herein to any party hereto shall include the heirs, executors, administrators, and other legal representatives of such party. (6) Schedules Schedules "A" and "B" attached hereto form part of this Agreement. IN WITNESS WHEREOF the Parties hereto have executed this Indenture. SIGNED, SEALED AND DELIVERED THE CLAREMONT LIONS CLUB THE CORPORATION OF THE CITY OF PICKERING Wayne Arthurs, Mayor Bruce Taylor, City Clerk J:~EG ALS VC~L52004~LIONCLAR~iGMTAGRE.DO C 12 RECOMMENDATION OF THE FINANCE & OPERATIONS COMMITTEE DATE MOVED BY That Report OES 35-02 regarding Lease Agreement, be received; and That the draft By-laws for execution of Leases between the City and Her Majesty the Queen in Right of Canada, respecting the above Lease Agreements for the term from February 1, 2002 to January 31, 2007, be forwarded to Council for approval. PICKERING REPORT TO THE Finance & Operations committee Report Number: OES 35-02 Date: September 9, 2002 F rom: Richard Holborn, P, Eng. Division Head, Municipal Property & Engineering Stephen Reynolds Division Head, Culture & Recreation Subject: Lease Agreements: Lease No.: 614201-1 - Don Beer Memorial Park Lease No.: 614658-1 - Brougham Community Centre Lease No.: 614280-2 - Museum Lease No.: 614725-1 - Brougham Parkette File: RTC OES 35-02 Recommendation: 1. That Report OES 35-02 regarding Lease Agreements be received; and that; The draft By-laws for execution of Leases between the City and Her Majesty the Queen in Right of Canada, respecting the above Lease Agreements for the term from February 1, 2002 to January 31, 2007, be forwarded to Council for approval. Executive Summary: Public Works and Government Services Canada are requesting the City of Pickering to approve newly drafted lease agreements for the above properties. These properties, which are currently occupied by the City of Pickering, are part of lands expropriated by the Federal Government for the purpose of an airport. These agreements expired in 1996 and after numerous contacts by City staff, draft Lease Agreements for these properties have been recently received for review and approval. Financial Implications: 2002 - 2007 Current Budget - Parks Maintenance - $1,500 per year (estimate). Rental per annum per property - $10.00 plus G.S.T. Report OES 35-02 Subject: Lease Agreements Don Beer Memorial Park - No. 614201-1 Brougham Community Centre - No. 614658-1 Museum - No. 614280-2 Brougham Parkette - No. 614725-1 Date: September 9, 2002 Page 2 Background: The City currently occupies these premises under written Leases which expired in 1996. The new Leases, for a further five (5) year term, from February 1,2002 to January 31,2007, is similar in all material respects to the existing Leases. The enactment of the draft by-laws attached will authorize the execution of the Leases which forms Schedule A to that by-law. Attachments: 1. Draft by-laws (4) 2. Sample Lease Agreement Prepared By: Approved / Endorsed By: ~e~--,Bd'b Kuzma// Supervisor, Fleet Operations & Special Projects (acting) DR.i~iis~rd Holb~'¢', P, Eng. on Head, Municipal Property & Engineering Appro~d By: . Stephen~ey~ld"s Division Hb'~d, Culture & Recreation RH/SR:bk Attachments Copy: Chief Administrative Officer Approved / Endorsed By: Everettl~untsma Director, Operations & Emergency Services Recommended for the_.[t~sideretion of Pickering City Cou Thoma~r O. _Quinn, C ATTACHPIENT# ..... I TO REPORT# ,,, ,~E, ,~ _~5-02.~ ,,, ~, of ...... I THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. Being a by-law to authorize the execution of a Lease between the City and Her Majesty the Queen in Right of Canada, respecting part of Lot 18, Concession 6, Pickering (Don Beer Memorial Park; 2002/2007) WHEREAS, pursuant to the provisions of section '208.57 of the Municipal Act, R.S.O. 1980 chapter 302, the council of a municipality may pass a by-law for acquiring, maintaining and operating parks and community recreation centers; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: The Mayor and Clerk are hereby authorized to execute a Lease between the Corporation of the City of Pickering and Her Majesty the Queen in Right of Canada, in the form attached hereto as Schedule A, for the use of that part of Lot 18, Concession 6, Pickering, described therein as Don Beer Memorial Park from February 1,2002 to January 31,2007. BY-LAW read a first, second and third time and finally passed this 7th day of October, 2002. Wayne Arthurs, Mayor Bruce Taylor, Clerk ATTACHMENT# ~, TO REPORT# I ofI THE OORPORATION OF THE OITY OF PIOKERING BY-LAW NO. Being a by-law to authorize the execution of a Lease between the City and Her Majesty the Queen in Right of Canada, respecting part of Lot 18, Concession 5, Pickering (Brougham Community Centre; 2002/2007) WHEREAS, pursuant to the provisions of section 208.57 of the Municipal Act, R.S.O. 1980 chapter 302, the council of a municipality may pass a by-law for acquiring, maintaining and operating parks and community recreation centers; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: The Mayor and Clerk are hereby authorized to execute a Lease between the Corporation of the City of Pickering and Her Majesty the Queen in Right of Canada, in the form attached hereto as Schedule A, for the use of that part of Lot 18, Concession 5, Pickering, described therein as Brougham Community Centre, from February 1,2002 to January 3!, 2007. BY-LAW read a first, second and third time and finally passed this 7th day of October, 2002. Wayne Arthurs, Mayor Bruce Taylor, Clerk ATTACHPIENT#_..~ TOP, EPORT# oE.S .~.S'-02..,., Jof I THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. Being a by-law to authorize the execution of a Lease between the City and Her Majesty the Queen in Right of Canada, respecting part of Lot 19, Concession 5, Pickering (Museum; 2002/2007) WHEREAS, pursuant to the provisions of section 208.57 of the Municipal Act, R.S.O. 1980 chapter 302, the council of a municipality may pass a by-law for acquiring, maintaining and operating parks and community recreation centers; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: The Mayor and Clerk are hereby authorized to execute a Lease between the Corporation of the City of Pickering and Her Majesty the Queen in Right of Canada, in the form attached hereto as Schedule A, for the use of that part of Lot 19, Concession 5, Pickering, described therein as the Museum, from February 1,2002 to January 31,2007. BY-LAW read a first, second and third time and finally passed this 7th day of October, 2002. Wayne Arthurs, Mayor Bruce Taylor, Clerk ATTACHHENT#.-~ '[OREPORT# 0'E~ i,of ~ ,, THE CORPORATION OF THE CITY OF PICKERING 23 BY-LAW NO. Being a by-law to authorize the execution of a Lease between the City and Her Majesty the Queen in Right of Canada, respecting part of Lot 19, Concession 6, Pickering (Brougham Parkette; 2002/2007) WHEREAS, pursuant to the provisions of section 208.57 of the Municipal Act, R.S.O. 1980 chapter 302, the council of a municipality may pass a by-law for acquiring, maintaining and operating parks and community recreation centers; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: The Mayor and Clerk are hereby authorized to execute a Lease between the Corporation of the City of Pickering and Her Majesty the Queen in Right of Canada, in the form attached hereto as Schedule A, for the use of that part of Lot 19, Concession 6, Pickering, described therein as Brougham Parkette, from February 1,2002 to January 31,2007. BY-LAW read a first, second and third time and finally passed this 7th day of October, 2002. Wayne Arthurs, Mayor Bruce Taylor, Clerk 24 ATTACHHEHT# D ~ TO~POgT#~ ~-~ LEASE DON BEER MEMORIAL PARK Pickering, Ontario THE CORPORATION OF T~ CITY OF PICKERING AND HER MAJESTY THE QUEEN IN RIGHT OF CANADA DPW tD No. 614201-1 Page 2 ARTICLE I - DEFINITIONS AND INTERPRETATIONS ....................................................................... 4 SECTION 1.01 DEFINITIONS .......................................................................................................................... 4 SECTION 1.02 EXTENDED MEANINGS ........................................................................................................... 6 SECTION 1.03 ENTIRE AGREEMENT .............................................................................................................. 7 SECTION 1.04 SCHEDULES ............................................................................................................................ 7 SECTION 1.05 LAW ....................................................................................................................................... 7 SECTION 1.06 T~E OF THE ESSENCE ........................................................................................................... 7 ARTICLE 2- GRANT .................................................................................................................................... 7 SECTION 2.01 GRANT .................................................................................................................................... 7 ARTICLE 3 - USE .......................................................................................................................................... 7 SECTION 3.01 USE ......................................................................................................................................... 7 SECTION 3.02 NUISANCE ............................................................................................................................... 7 SECTION 3.03 ADVERTISING .......................................................................................................................... 8 ARTICLE 4 -TERM ...................................................................................................................................... 8 SECTION 4.01 TERM AND RIGHT TO TERMINATE ......................................................................................... 8 SECTION 4.02 SURRENDER OR TERMINATION ............................................................................................... SECTION 4.03 REMOVAL OF MOVEABLE PROPERTY ..................................................................................... 8 SECTION 4.04 REMOVAL OF IMPROVEMENTS ............................................................................................... 9 SECTION 4.05 OBLIGATIONS SURVIVE ExvmY, SURRENDER OR TERMINATION ........................................... 9 SECTION 4.06 OVERHOLDINO ..................................................................................................................... 10 ARTICLE 5 - QUIET ENJOYMENT ........................................................................................................ 10 ARTICLE 6 - NET LEASE ......................................................................................................................... 10 SECTION 6.01 NET LEASE ........................................................................................................................... 10 ARTICLE 7 - RENT ..................................................................................................................................... 11 SECTION 7.01 GENERAL PROVISIONS .......................................................................................................... 11 SECTION 7.02 RENT .................................................................................................................................... 11 SECTION 7.03 1VIANNER OF PAYMENT ......................................................................................................... 11 SECTION 7.04 INTEREST ON ARREARS OF RENT .......................................................................................... 11 ARTICLE 8- TAXES .................................................................................................................................. 12 SECTION 8.01 P~AL PROPERTY TAXES ....................................................................................................... 12 SECTION 8.02 OTHERTAXES ...................................................................................................................... 12 SECTION 8.03 GOODS AND SERVICES TAX .................................................................................................. 12 ARTICLE 9 - UTILITIES ........................................................................................................................... 13 SECTION 9.01 LANDLORD NOT OBLIGATED ................................................................................................ 13 SECTION 9.02 TENANT TO PAY FOR UTILITIES ............................................................................................ 13 SECTION 9.03 SUSPENSION OF UTILITIES .................................................................................................... 13 ARTICLE 10 - I~zAINTENANCE AND REPAIRS .......................... ~ ........................................................ 13 SECTION 10.01 LANDLORD NOT OBLIGATED ............................................................................................. 13 SECTION 10.02 TENANT'S OBLIGATIONS .................................................................................................... 14 SECTION 10.03 REPAIR BY LANDLORD ...................................................................................................... 14 SECTION 10.04 RESEKVATIONS BYLANDLORD .......................................................................................... 14 ARTICLE 11 - ALTERATIONS ................................................................................................................. 15 SECTION 11.01 ALTERATIONS .................................................................................................................... 15 SECTION 11.02 CONTRACT SECURITY ........................................................................................................ 16 SEC~ON 11.03 BUTLDERS' LIENS ............................................................................................................... 16 ARTICLE 12 - INSURANCE ..................................................................................................................... 17 SECTION 12.01 INSURANCE ......................................................................................................................... 17 ARTICLE 13 - DAMAGE AND DESTRUCTION .................................................................................... 18 SECTION 13.01 PROPERTY INSURANCE ....................................................................................................... 18 ARTICLE 14 - LIABILITY, RELEASE AND INDEMNITY .................................................................. 19 SECTION 14.01 LANDLORD NOT RESPONSmLE ............................................................................................ 19 SECTION 14.02 RELEASE AND INDEMNITY .................................................................................................. 19 SECTION 14.03 TENANT TO DEFEND ACTION .............................................................................................. 20 ARTICLE 15 - LAWS AND CONTROL ................................................................................................... 20 SECTION 15.01 COMPLIANCE WITH ALL LAWS ............................................................................................. 20 ARTICLE 16 - ENVIRONMENT ............................................................................................................... 21 Page 3 SECTION 16.01 COMPLIANCE WITH ENVIRONMENTAL LAWS ....................................................................... 21 SECTION 16.02 LANDLORD'S RIGHT TO ENVIRONMENTAL AUDIT ................................................................ 22 SECTION 16.03 TENANT TO PERFORM ......................................................................................................... 22 SECTION 16.04 LANDLORD MAY PERFORM ................................................................................................. 23 SECTION 16.05 OWNERSHIP OF DELETERIOUS SUBSTANCES ....................................................................... 23 SECTION 16.06 BOND FOR DELETERIOUS SUBSTANCES ............................................................................... 23 ARTICLE 17 - DEFAULT ........................................................................................................................... 24 SECTION 17.01 TENANT'S DEFAULT .......................................................................................................... 24 SECTION 17.02 LANDLORD'S KIGHTS ......................................................................................................... 25 SECTION 17.03 REMEDIES NOT EXCLUSrVE ................................................................................................ 26 ARTICLE 18 - FORCE MAJEI/RE ........................................................................................................... 26 ARTICLE 19 - ASSIGNMENT AND SUBLETTING ............................................................................... 27 SECTION 19.01 PROHIBITION AGA1NST ASSlGNMENT OK SUBLETTING ........................................................ 27 SECTION 19.02 NOTICE OF ASSIGNMENT OR SUBLET ................................................................................. 27 SECTION 19.03 ASSIGNMENT BY LANDLORD .............................................................................................. 28 ARTICLE 20 - SUCCESSORS AND ASSIGNS ........................................................................................ 28 SECTION 20.01 BINDING ON SUCCESSOKS AND ASSIGNS ............................................................................ 28 ARTICLE 21 - ADDITIONAL PROVISIONS ......................................................................................... 28 SECTION 21.01 ADDmONAL RIGHTS OF LANDLORD ....... 28 SECTION 21.02 NOTICES ............................................................................................................................. 29 SECTION 21.03 AMENDMENTS .................................................................................................................... 30 SECTION 21.04 NO PARTNERSHIP OR JOINT VENTURE ................................................................................ 30 SECTION 21.05 [M_EMBERS OF HOUSE OF COMMONS NOT TO BENEFIT ................................................ ; ........ 30 SECTION 21.06 WArVE}~ .............................................................................................................................. 32 SECTION 21.07 FUKTHEK ASSURANCES ...................................................................................................... 30 SECTION 21.08 RJEGISTRATION .................................................................................................................... 30 SECTION 21.09 BmBES .......................................................................................................................... ..... 30 SECTION 21.10 DISPUTE RESOLUTION ......................................................................................................... 31 Schedule A ......................... Description of Lands Schedule B ......................... Plan of Site THIS LEASE made the Twenty-third (23rd) day of January 2002. Page 4 BETWEEN: HER MAJESTY THE QUEEN IN RIGHT OF CANADA, represented by the Minister of Public Works and Government Services Canada, ("the Landlord") OF THE FIRST PART TI-W~ CORPORATION OF THE CITY OF PICKERING, ("the Tenant") OF THE SECOND PART 27 WHEREAS the Premises are part of lands expropriated by Her Majesty for the purpose of AND WHEREAS it is deemed expedient that the Premises be leased for so long as they are not required for public purposes; THIS AGREEMENT WITNESSES that, in consideration of the premises, the mutual covenants and agreements herein contained and subject to the terms and conditions hereinafter set out, the parties hereto agree as follows: ARTICLE I - DEFINITIONS AND INTERPRETATIONS Section 1.01 .Definitions When used in this Lease, unless the context otherwise requires, the following expressions have the meaning hereinafter set forth. "Additional Rent" means any sum of money or charge required to be paid by the Tenant under this Lease, other than Rent. "Architect" means a person who is appointed by, but who is at arm's length with, the Tenant and is as an architect in the Jurisdiction. "Building" means the frame one storey, 75 square metre, sports equipment shed located on the lands. "Claims" means any claims, proceedings, actions, judgments, executions and liabilities. "Costs" means all expenses, losses, charges and payments relating to an event and includes any professional, consultant and legal fees (on a "solicitor/client" basis). "Date of Commencement" means the first (1 st) day of February 2002. "Damage" means any loss of or damage to property and includes: (a) loss of profits or revenue; or loss of tenants, lenders, investors or patrons, direct, indirect, incidental, special, exemplary or consequential damage, interference with business operations, inability, to use any part of the Premises, and Costs. 28 Page 5 "Deleterious Substance" means any substance which pursuant to any law is deleterious or hazardous to persons; animals, fish, plants, property, soil, water or the environment, including pesticides and herbicides. "Engineer" means a person who is appointed by, but who is at arm's length from the Tenant and is licensed to practice public engineering in the Jurisdiction. "Force Majeure" means a strike, lockout, riot, insurrection, war, fire, tempest, Act of God or lack of material causing a delay, notwithstanding the best efforts of the party delayed, in the performance of any obligation under this Lease. "GST" has the meaning ascribed in Section 8.03.01. "Injury" means any personal injury including any personal discomfort, libel, slander, invasion of privacy, discrimination, wrongful entry and eviction, and any bodily injury including death resulting therefi:om and whether the death occurs before or after the end of the Tenn. "Interest Rate" means, during any part of a Lease Year, the Bank of Canada prime rate applicable on the date of default plus two percent (2%). "Jurisdiction" means the Province of Ontario. Land(s)" means the land described in Schedule "A". Law(s)" means law, regulation, order, decision, policy, directive or nde, and similar enactments and statements, and shall be read, where applicable, as being "relevant as made or amended from time to time". "Lease Year" means a twelve-month period commencing on February 1 and ending on January 31. "Leasehold Improvements" means all equipment installed and alterations made by the Tenant or any Occupant which serve the Premises whether or not easily disconnected or moveable, and includes production equipment, service equipment, all ceiling and wall fixtures and floor covering, but does not include trade fixtures. "Leasehold Interest" means the right, title and interest of the Tenant in the Premises. "Minimum Rent" means the rent payable by the Tenant pursuant to Section 7.02. "Minister" means the Minister of Public Works and Government Services Canada and includes any of the following: (a) a Person acting for; or if the office vacant, in place of, the Minister of Public Works and Government Services Canada (b) his successors in office, (c) and his lawful deputy. "Moveable Property" means chattels, goods, supplies and materials "Other Taxes" means any tax or other charge including any fines or cost which are imposed against the Premises including local improvement charges and development charges and water, snow and sewer rates of every kind whatsoever that are imposed from time to time by any taxing authority save and except Real Property Taxes. "Person(s)" means any individual, sole proprietorship, partnership, corporation, trust or government authority, howsoever designated. Page 6 ATTACHlqENT# 5' "Premises" means the Land, building(s) and all Utilities serving the Premises. "Real Property Taxes" means all taxes and assessments of every kind whatsoever that are imposed from time to time by any taxing authority, whether federal, provincial, municipal, school or otherwise or which would have been so imposed but for any attribute of the Landlord which resulted in an exemption or partial exemption therefrom against (a) the Premises; and (b) includes any taxes or other amounts, which are paid instead of, or in lieu of, or in addition to, any such taxes and assessments. "Rent" means all Minimum Rent, and Additional Rent collectively. "Replacement Costs of the Improvements" means the costs to replace the Existing, Additional and Leasehold Improvements to the condition immediately prior to the happening of an event of damage or destruction. "Term" has the meaning ascribed to it in Section 4.01.01. "Utility(ies)" means utilities and services, well water and/or municipal water and all related systems, facilities and equipment. "Work" means all material and services furnished or performed pursuant to this Lease including all the maintenance, repair, alterations and replacement of all Existing Improvements, Additional Improvements and Leasehold Improvements. 29 Section 1.02 Extended Meanings 1.02.01 Where this Lease provides that the Tenant shall "ensure" a covenant or obligation of an Occupant, Transferee or Leasehold Mortgagee ("Transferee") or provides that the Tenant agrees to a specific matter on behalf of a Transferee, the obligation of the Tenant shall be deemed to have been performed if the Tenant has obtained from such transferee an agreement no less stringent, and in the event of a breach of such agreement by the Transferee, the Tenant has used diligent efforts to enforce such agreement, including the prosecution of legal proceedings. 1.02.02 In this Lease "includes" means "includes without limitation" and each obligation or agreement of either party is considered a "covenant", and all references in this Lease to laws, policies, schedules, manuals, directives, specifications and similar enactments and statements shall be read, where applicable, as being "relevant as replaced or amended from time to time", and, with regard to the Premises and the Land, "in" shall be read as "on", m, over, under, "through" or "across". 1.02.03 Words importing the singular number include the plural number and vice versa and words importing gender include the masculine, feminine and neuter genders. 1.02.04 If the day on which any act or payment is required to be done or made under the terms of this Lease is a day which is not a Business Day, then such act or payment is duly done or made if done or made on the next following Business Day. 3O Section 1.03 Entire Agreement This Lease constitutes the entire agreement between the Landlord and the Tenant and supersedes and revokes ail previous arrangements, including pre-contractual representations, if any, whether oral or in writing, between the parties hereto. Section 1.04 Schedules SCHEDULES "A" and "B" inclusive are attached to and form part of this Lease: SCHEDULE "A"- Description of Land SCHEDULE "B"- Plan of Site 3O Page 7 ATTACHMENT#_~ _ 1'0 REPORT#D~--.~ ..~..~'"-0~ Section L 03 Entire Agreement This Lease constitutes the entire agreement between the Landlord and the Tenant and supersedes and revokes all previous arrangements, including pre-contractual representations, if any, whether oral or in writing, between the parties hereto. Section 1.04 Schedules SCHEDULES "A" and "B" inclusive are attached to and form part of this Lease: SCHEDULE "A"- Description of Land SCHEDULE "B"- Plan of Site Section 1.05 Law This Lease shall be interpreted in accordance with the laws in force in the Jurisdiction, subject, so long as Her Majesty is the Landlord, to any Federal Crown prerogative and any paramount or applicable federal law. Section 1.06 Time of the Essence Time is of the essence of this Lease except as otherwise expressly provided herein. ARTICLE 2 - GRANT Section 2.01 Grant In consideration of the rents, covenants and agreements herein contained on the part of the Tenant to be paid, observed and performed the Landlord leases to the Tenant, and the Tenant leases from the Landlord the Premises in "as is" condition for the Term. ARTICLE 3 - USE Section 3.01 Use The Tenant shall use the Premises only for the purpose of a public playground and for no other purpose whatsoever and shall comply with all Laws in such use. The Tenant agrees that it has examined the Premises and is familiar with the condition and permitted use thereof. Section 3.02 Nuisance The Tenant shall not do, suffer or permit to be done any act or thing on the Premises which constitutes a significant nuisance to any Person on any lands or premises or to the public generally. Page 8 ATTACHMENT# Section 3.03 Advertising Throughout the Term hereby granted or any extension thereof, the Tenant shall not construct, erect, place or install on the outside of or on the Premises any poster, sign or display, electrical or otherwise, without first obtaining the consent, in writing, of the Landlord, which consent shall not be unreasonably withheld. ARTICLE 4 - TERM Section 4.01 4.01.01 4.01.02 Term and Right to Terminate The term of this Lease shall be for five years ("Term"). The Term commences on the Date of Commencement, and, unless earlier terminated pursuant to other provisions hereof, ends on the Thirty-first day of January 2007. The Landlord reserves the right to terminate this Lease at any t/me during the currency of the Lease for any purpose, as determined by the Minister by giving the Tenant one year notice in writing signed by or on behalf of the Minister. Section 4. 02 Surrender or Termination On expiry of the Term or any extension thereof, or any period of overholding, or on surrender or sooner determination of this Lease, the Tenant shall surrender and deliver up to the Landlord vacant possession of the Premises in the state of good order, condition and repair in which, by this Lease, the Tenant has covenanted to keep them during the Term, and free and clear of all mortgages, charges or encumbrances created by the Tenant or its assignees, and of all Deleterious Substances, and all fights of the Tenant under this Lease shall then terminate. Section 4. 03 Removal of Moveable Property Except as otherwise provided in this Lease, the Tenant shall, on expiry of the Term or any extension thereof or any period of overholding, or on surrender or sooner determination of this Lease, forthwith remove from the Premises all Moveable Property and, shall also, to the satisfaction of the Landlord, repair all damage to the Premises by reason of the installation or removal thereof, without compensation. Unless the Landlord so requests, no Moveable Property shall be so removed until all Rent due or to become due under this Lease is fully paid. The Tenant hereby agrees that if it fails to effect such removal forthwith, that the said Moveable Property shall be deemed abandoned and worthless, and that the Landlord may, in Her absolute and unfettered discretion immediately dispose of the Moveable Property in any manner She fees fit, all without service of notice by the Landlord or resort by Her to any legal process, and without Her being considered guilty of trespass or becoming liable for any loss or Damage. The Tenant further agrees to indemnify the Landlord for all expenses incurred by Her, in effecting such removal, and in returning the Premises to a state o£good order, condition and repair. 32 Section 4. 04 4.04.01 4.04.02 4.04.03 Page 9 ATTACHHENT# 5 TOREPORT Removal of Improvements Subject to Section 16.05, the Building and any and all improvements made to the Building during the Term and Utilities are fixtures to the Premises and are the absolute property of the Landlord. Subject to Section 16.05, all Leasehold Improvements which are fixtures to the Prenfises shall become the absolute property of the Landlord on the expiry of the Term or any extension thereof, or any period of overholding, or on the surrender or early termination of this Lease, without any compensation to the Tenant. At any time prior to expiry of the Term or any extension thereof, or expiry of any period of overholding or sooner determination of this Lease, or within six (6) months after such expiry or sooner determination, the Landlord may notify the Tenant in writing that the whole or any part of any Leasehold Improvement which is a fixture, must be removed, in which event, (a) prior to expiry of this Lease if the Landlord's notice is received prior to such the expiry, or (b) within thirty (30) days of such notification, if the Landlord's notice is received on or after such expiry, or (c) within thirty (30) days of such notification or in the event of any overholding, the Tenant shall, at its own cost, in the case of any Leasehold Improvements, remove any such improvement and repair any damage made in constructing, erecting or removing it and leave the area upon which had stood in a similar condition to which existed prior to its erection, installation or construction and in a clean, neat and tidy condition to the satisfaction of the Landlord. 2/'-02_ Section 4.05 Obligations Survive Expiry, Surrender or Termination Notwithstanding the expiry, surrender or termination of this Lease in any manner, (~) the Tenant remains liable to the Landlord for any loss or Damage suffered by the Landlord and other Persons arising f~om this Lease, and (b) the obligations of the Tenant (i) to indemnify and save harmless the Landlord with respect to liability by reason of any matter arising prior to the expiry, surrender or termination of this Lease, and (ii) Article 16 and Sections 4.03 and 4.04, shall, notwithstanding any other provision of this Lease or any Law now or hereafter in force, continue in full force and effect until discharged whether before or after the expiry, surrender or termination of this Lease Section 4. 06 4.06.01 4.06.02 Page 10 ATTACHMENT#~ i0 Overholding If the Tenant remains in possession of the Premises after the expiry of the Term or any extension thereof, whether with or without the consent of the Landlord, there shall be no tacit renewal or extension of this Lease, In this event, notwithstanding any statutory provision or legal presumption to the contrary, the Tenant shall be deemed exclusively to be occupying the Premises as a tenant at will, on the same terms as set forth in this Lease (including the payment of Rent), except that the monthly minimum rent shall be an amount equal to the aggregate of 33 (a) two hundred percent (200%) of the Rent payable for the last month of the Term, (b) Additional Rent for the current month. The Tenant shall promptly indemnify and save harmless the Landlord fi.om and against any and all Costs incurred by Her as a result of the Tenant remaining in possession of the Premises after the expiry of the Term and the Tenant shall not make any counterclaim, against the Landlord. ARTICLE 5 - QUIET ENJOYMENT Subject to the other provisions of this Lease, if the Tenant pays the Rent and other sums herein provided when due, and punctually observes and performs all of the covenants, terms and conditions hereunder, the Tenant shall peaceably and quietly hold and enjoy the Premises for the Term without hindrance or interruption by the Landlord or any other Person lawfully claiming under the Landlord. Section 6.01 6.01.01 6.01.02 ARTICLE 6 - NET LEASE Net Lease The Tenant agrees that the Premises are leased in "as is" condition and this Lease shall be an absolutely net lease to the Landlord. The Tenant shall pay all charges and expenses of every kind, extraordinary as well as ordinary and foreseen as well as unforeseen, relating to: (a) the Premises and their contents, use or occupancy, (b) the activity carried on therein, and (c) the carrying out of any construction or maintenance and the making of any alterations or repairs in the Premises. The Tenant acknowledges that any amount and any obligation with respect to the Premises which is not expressly declared in this Lease to be the responsibility of the Landlord, shall be the sole responsibility of the Tenant to be paid or performed in accordance with the terms of this Lease. The Tenant agrees that it has examined the Premises and is familiar with the condition and permitted use thereof. 34 Page 11 ARTICLE 7 - RENT ATTACHHENT# ~' TOREPORT# OE.~ Section 7.01 General Provisions The Tenant covenants that it shall, during the Term or any extension thereof, pay to the Landlord Rent in accordance with the terms of this Lease. Section 7.02 Rent 7.02.01 For Lease Years One through Five inclusive, the Tenant shall pay:. Minimum Rent in the mount of $10.00 plus GST, per annum, the receipt and sufficiency of which is herein acknowledged, is payable in full on July 1, of each and every year of the Term; and 7.02.02 For Lease Years One through Five inclusive, the Tenant shall pay: Additional Rent in the amount being the total of the Real Property Taxes payable by the Tenant, as determined by the Landlord, for each and every Lease Year of the Term. Every amount so determined shall be due and payable within sixty days next following delivery to the Tenant of an invoice in the amount of the Real Property Taxes applicable to each Lease Year of the Term. Section ZO$ 7.03.01 7.03.02 Manner of Payment The Tenant shall pay all Rent when due, without any prior demand therefore and without any set-off or alteration whatsoever, and the Tenant hereby waives the benefit of any statutory or other right in respect of any Claims, such payment to be made to the Receiver General for Canada at: Property Management Branch Department of Public Works and Government Services Brougham, Ontario L0H lA0 or to such other payee or address as the Landlord may, from time to time designate in writing. Any payment by the Tenant of any Rent, any Additional Rent or an amount. less than the monthly payment of Rent or Additional Rent, shall be credited to the earliest of any arrears of Rent. Section Z04 7.04.01 Interest on Arrears of Rent If the Tenant fails to pay any amount of Rent on the date on which it becomes due and payable, the Tenant shall pay interest at the Interest Rate on any such amount, calculated from the date the Tenant was required to pay such amount to the date all arrears are paid. Such interest shall be deemed to be pan of the Rent reserved in this Lease and the remedies 7.04.02 7.04.03 7.04.04 Page 12 ATTACHHENT# .... G" TOREPORT#,~E..~ 35~ available to the Landlord relating to Rent herein and at law shall apply mutatis mutandis thereto. The Interest Rate applicable to any mount on which the Tenant is paying interest shall be the rate in effect at the close of business on the last Business Day of the previous month. All interest shall be compounded monthly and shall apply retroactively from the date it is due. In the event of non-sufficient funds or the Bank refusing to process the Landlord's request for payment for any other reason, the Tenant shall immediately issue a certified cheque which shall include any interest at the Interest Rate and an administrative charge to be set in accordance with the Landlord's current policy. Section & O1 8.01.01 ARTICLE 8 - TAXES Real Property Taxes Subject to section 7.02, the Landlord shall, on or before its due date, pay to the taxing authority and shall discharge all Real Property Taxes or charges imposed in lieu thereof including any fine, interest and cost related thereto. Section 8.02 8.02.01 Other Taxes The Tenant shall, on or before their due date, pay to the taxing authorities and shall discharge when they become due and payable: (a) any Other Tax or charge imposed in lieu thereof and other charges including any fines and costs which are imposed against or in respect of any Leasehold Improvement, trade fixtures or personal property in the Premises, and (b) any tax and license fee including any cost related thereto which is imposed against any business or undertaking carded on in the Premises or in respect of any use or occupancy thereof: whether any such tax, other charge or license fee is imposed by any federal, provincial, municipal, school or Other authority. Section 8. 03 8.03.01 Goods and Services Tax The Tenant shall pay an mount equal to any and all taxes, rates, levies, fees, charges and assessments whatsoever, whether or not in existence at the Date of Commencement, assessed, charged, imposed, levied or rated by any taxing authority whether federal, provincial, municipal or otherwise, on or against the Landlord or the Tenant, with respect to the Rent payable by the Tenant to the Landlord under this Lease or the rental of space under this Lease or the, provision or supply of any goods, services or utilities whatsoever by the Landlord to the Tenant under this Lease, whether any such tax, rate, duty, levy, fee, charge or assessments called or characterized as a sales, use, consumption, value-added, business transfer or goods and services tax or otherwise (collectively, "G.S.T."). If the applicable legislation requires that any G.S.T. is to be collected by the Landlord, the Page 13 ATTACHNENT# 5 TOP, EPORT#O~-.~ ,..,~.~-0~ amount of the G.S.T. so payable by the Tenant shall be calculated by the Landlord in accordance with the applicable legislation and shall be paid by the Tenant to the Landlord at the same time as the Minimum Rent is payable or at such other time or times as the applicable legislation may from time to time require. Despite any other provision of th/s Lease, the amount or amounts t}om time to time payable by the Tenant under this Section 8.03 shall be deemed not to be consideration for the supply of space under this Lease, but shall be considered to be Rent for the purposes of the Landlord's rights and remedies for non-payment and recovery of any such amounts Section 9.01 ARTICLE 9 - UTILITIES Landlord Not Obligated The Landlord shall not be obligated to furnish to the Premises any Utilities or to pay for their consumption. Section 9. 02 9.02.01 9.02.02 9.02.03 Tenant to Pay for Utilities The Tenant shall, at its cost, be solely responsible for the installation and maintenance of and for alteration to any connecting system to all utilities including, when supplied, the Landlord's water, sanitary sewage and storm sewage, to the point of connection designated by the Landlord. The Tenant shall pay, when due, all charges for all utilities consumed on or supplied to the Premises and shall indemnify the Landlord against any liability or damages pertaining thereto. The Tenant shall ensure any septic tank(s) servicing the Premises is/are emptied as required and at the end of the Term or other termination at its sole cost and expense. Section 9.03 9.03.01 9.03.02 Suspension of Utilities The Tenant shall not make any Claims or bring any action against the Landlord, and the Tenant hereby releases the Landlord from any Claims for an Injury or any Damage by reason of any interruption, in whole or in part, from whatever cause arising in the supply of any utilities serving the Premises, whether supplied by the Landlord or by others. In the event that the well(s) servicing the Premises run dry, or is, or becomes polluted, the Tenant will be solely responsible for all costs to locate and/or supply any alternative water or water source. ARTICLE 10 - MAINTENANCE AND REPAIRS Section 10. O1 Landlord Not Obligated The Landlord shall not be obligated to make any repairs or perform any maintenance to the Premises. Page 14 ATTACHPIENT# 5 TOP, EPOP, T# Section 10.02 Tenant's Obligations The Tenant shall, at its cost, at all times during the Term, continuously and diligently keep the Premises in a clean and safe condition and operate, maintain and repair the Premises, Leasehold Improvements and all the contents thereof and all Utilities located in or primarily serving the Premises as would a careful and prudent owner, in first-class order, condition and repair, and in accordance with all Laws, and the Landlord's requirements. Section 10. 03 Repair By Landlord If the Premises require repair, replacement or alteration or become damaged or destroyed through the fault or negligence of the Tenant, or because of the Tenant's operations, and if the Tenant does not effect the required repair, replacement or alteration within a reasonable time as determined by the Landlord, the Landlord may have such repair, replacement or alteration effected, and the Tenant shall pay as Additional Rent, the full cost plus an amount equal to twenty percent (20%) of such cost. Section 10. 04 Reservations by Landlord 10.04.01 The Landlord may, at all reasonable times, (a) enter the Premises for the purpose of making alterations to: (i) any part of the Premises, or (ii) any utility in the Premises on the Date of Commencement or for which an easement or license is granted by the Landlord after the Date of Commencement, Co) bring onto the Premises and use such machinery, equipment, materials and workmen as may be reasonably required for making alterations, and such entry shall not constitute an eviction of the Tenant from the Premises or a re-entry or an interference with the Tenant's possession. The Rent hereunder shall in no way abate while such alterations are being made. 10.04.02 The Landlord may, when necessary in order to make any alterations, cause temporary obstruction of any pedestrian or vehicular access to the Premises and may interrupt or suspend the supply of any Utility to the Premises until such alterations are completed, all without any abatement in Rent. 10.04.03 The Landlord reserves the right to grant any easements or licenses that may be required by it determined in its sole discretion. The Tenant agrees to postpone its interests to any such license or easement granted by the Landlord. 10.04.04 The Tenant hereby releases the Landlord from any Claim for any Injury or Damage resulting from any Alteration permitted hereunder; it being expressly agreed that, notwithstanding Subsection 10.04.01, if such alterations result in a substantial impediment to the Tenant's operations, the Tenant, acting reasonably, may request an appropriate abatement in Rent fi'om the Landlord. 38 Section 11.01 11.01.01 11.01.03 11.01.04 11.01.05 11.01.06 Page 15 ATTACHMENT# ~ ... TOREPORT#O~)~.~""-O~ ~' of.S,./ ARTICLE 11 - ALTERATIONS Alterations The Tenant shall not, nor shall it permit any Person to (a) make any alterations, or Leasehold Improvements, or (b) add any Utilities to the Premises, without first submitting to the Landlord the plans, drawings and specifications (in this article "plans") therefor and any other information requested by the Landlord, and obtaining the Landlord's prior written approval in each instance, and further obtaining Her prior written approval to any change in such plans. The Tenant shall, before proceeding with any work based on the plans, pay to the Landlord the cost of approving the plans and any changes thereto. At the same time as the Tenant submits any plans to the Landlord for Her approval, the Tenant shall provide Her with satisfactory evidence that it has obtained an assignment to and irrevocable license in favour of the Landlord of the copyright of the plans from the Architect (or Engineer) creating the plans unless the Landlord waives this requirement in writing. The agreement providing such assignment and license shall expressly state that the Architect (or Engineer) shall not hold the Landlord responsible for any costs incurred or to be incurred in connection with the preparation of the plans or their subsequent use by the Landlord, and that the Landlord is entitled to use the plans for any purpose(s) related to the project which is the subject matter of such plans at any time without further consent or payment. The Tenant, once it commences any Work, shall complete such Work (a) in a good and workmanlike manner, strictly in accordance with any terms specified in the Landlord's prior written approval, (c) in accordance with the plans as approved, and (d) free and clear of any worker's compensation levies, liens and encumbrances whatsoever, against the Landlord's estate or interest in the Premises and the Leasehold Interest. It is agreed that the Landlord, acting reasonably, may halt or suspend the Work without notice. Within thirty (30) days of the Landlord determining that any Work which is the subject matter of the Landlord's prior written approval is substantially complete, the Tenant shall deliver to the Landlord two copies of the "as built" plans for such Work. At the request of the Landlord, the Tenant shall also deliver copies of any computer program embodying such plans in a format acceptable to the Landlord. If the Tenant does not deliver the plans within the said thirty (30) day period, the Landlord may have such plans prepared, and the Tenant shall pay as Additional Rent the full cost of having such plans prepared plus an amount equal to twenty percent (20 %) of such costs. 11.01.07 Page 16 ATTACHMENT# TOREPORT# of It is agreed that the Landlord's review and approval or non-approval of any such plans is not for any professional, technical or regulatory purpose but is only to protect Her interest. The Landlord, in approving or not approving any plans or in making any inspections of the Work as it progresses is not making any representations nor is She undertaking any responsibility of a planning, engineering or architectural nature. The Tenant assumes all such responsibility. Receipt by the Landlord of any plans or inspection of the Work as it progresses shall not imply that the Landlord has examined or approved such plans or the Work nor shall it operate as a waiver of any rights of the Landlord or operate as an estoppel against Her in any matter. The Tenant covenants to indemnify and save harmless the Landlord from all Claims made against the Landlord as a result of Her having reviewed and approved any plans. 39 Section 11.02 11.02.01 11.02.02 Contract Security The Tenant shall ensure that all its contractors as well as its sub-tenants and any sub-contractors shall purchase, provide and maintain for any construction (a) one hundred percent (100%) Performance Bonds; Labour and Material Payment Bonds being one hundred percent (100%) if the construction period provided for in the construction contract is three (3) months or less, and being fifty per cent (50%) if such construction period is more than three (3) months. The Tenant on demand shall provide proof of the existence of such Bonds to the Landlord. The Landlord shall be named as an obligee pursuant to such Bond or such Bonds shall, with the consent of the Bonding Company, be validly assigned to the Landlord. Section 11. 03 11.03.01 11 03.02 11.03.03 11.03.04 Builders' Liens The Parties hereto agree that the Construction or Builders' Liens legislation in the Jurisdiction shall have no jurisdiction over the Landlord or Her interest in the Premises and Leasehold Improvements as long as Her Majesty is the Landlord. The Tenant covenants that it shall not permit any construction or builder's liens to be registered against the title to the Premises or the Leasehold Interest therein and that it will cause any such liens to be discharged within fifteen (15) days of receiving notice of such liens. The foregoing shall not prevent the Tenant or anyone holding any such interest from contesting any third-party claim. If the Tenant desires to contest the amount or validity of any lien, it may pay the amount of the lien into Court and have the lien discharged. If, in the opinion of the Landlord, the Premises or the Tenant's interest therein may become liable to any forfeiture or sale or is otherwise in jeopardy, the Landlord may secure the removal of any lien registered, and any costs incurred by the Landlord for this purpose shall be paid as Additional Rent by the Tenant with interest at the Interest Rate calculated from the day the Landlord incurs the cost. 4O 11.03.05 Page 17 ATTACHHENT# ~...~ TO REPORT# o~5 The Tenant covenants to indemnify and save harmless the Landlord for and from any Claims or costs incurred by the Landlord as a result of construction or builder's liens affecting the Premises, by or on behalf of any worker, supplier, contractor or subcontractor of the Tenant or anyone holding any interest in the Land under the Tenant. ARTICLE 12 - INSURANCE Section 12.01 Insurance 12.01.01 The Tenant shall, during the entire term of the Lease, purchase and keep in full rome and effect and in the names of the Tenant and the Landlord the following insurance coverage: (a) commercial general liability insurance containing provisions adequate to protect both the Tenant and the Landlord from and against any and all claims or actions at the instance of third parties for personal injury and or for property damage occurring upon the Lands and Premises or elsewhere occasioned directly or indirectly by any fault, default, negligence, act or omission of the Tenant or the Landlord and of any other parties for whom in law the Tenant and/or Landlord may be responsible, such insurance having personal and bodily injury and property damage limits of liability of not less than $5,000,000 per occurrence, (b) all risks (including flood and earthquake) property insurance containing provisions adequate to protect a commercial enterprise, on all objects, owned or operated by the Tenant or by others (other than the Landlord) on behalf of the Tenant on the Lands or relating to or servicing the Lands, with reasonable deductibles of up to three percent (3%) of the replacement cost of property insured, (c) business interruption insurance, for any periods that the Premises are not operational due to extensive repairs as a result of damage or destruction of any portion of the Leasehold Improvements, and (d) any other form of insurance and with whatever higher limits the Landlord may reasonably require from time to time. 12.01.02 The policy of insurance required by this subsection shall provide that it shall not be modified or cancelled without at least 30 days prior written notice to the Landlord and to the Tenant. The Tenant shall deliver a copy of the policy to the Landlord upon execution of the Lease and shall further deliver an updated certificate of insurance on commencement of each Lease Year of the Term. 12.01.03 The Tenant agrees that, if the Tenant fails to take out or keep any such Insurance referred to in this Article 12, or should such Insurance not be approved by the Landlord and should the Tenant not commence diligently to rectify (and thereafter proceed diligently to rectify) the situation within forty-eight (48) hours after written notice by the Landlord to the Tenant, the Landlord has the right, without assuming any obligation in connection there~vith and without prejudice to any other rights and remedies of the Page 18 ATTACHMENT# /~ of 34 Landlord under this Lease, to effect any such Insurance at the sole cost of the Tenant and all outlays by Landlord plus an administration fee of twenty percent (20%) thereof shall be immediately paid by the Tenant to the Landlord on the first day of the next month following such payment by the Landlord. 41 ARTICLE 13 - DAMAGE AND DESTRUCTION Section 13.01 Property Insurance 13.01.01 In the event of damage to or destruction of any portion of the Premises; (a) the Tenant shall g/ve the Landlord prompt notice thereof, CO) the Tenant shall proceed promptly at its own cost to repair or reconstruct the Premises to a state of good order and repair in which the Tenant was required to maintain them immediately prior to the damage or destruction (such repair or reconstruction being referred to as "Damage Repair") and (c) tiffs Lease shall continue in full force and effect, without any abatement or reduction of Rent, notwithstanding any present or future law or statute to the contrary. 13.01 .O2 In the event of any Damage Repair, except with the approval of the Landlord, (a) the building shall, as a minimum, be repaired or reconstructed to the same height, volume, floor area, general form, mass, condition and quality as existed prior to the date of damage or destruction, Co) the Tenant shall comply with all provisions of this Lease applicable to alterations, and (c) the Damage Repair shall be done using materials and workmanship at least equivalent in value and quality to those incorporated into the building immediately prior to such damage or destruction. 13.01.03 Notwithstanding Subsection 13.01.01, if in the opinion of the Landlord there shall be complete or substantial destruction of the building (the "Event") and if the Event shall occur during the last two (2) years of the Term, the Landlord shall have the fight to terminate this Lease (the "Landlord's Termination Option") within 30 days after the Event. If the Landlord exercises the Landlord's Termination Option, the Tenant shall: (a) at its cost, if requested by the Landlord, properly fill, level, clear and compact the site; Co) pay to the Landlord all Rent due and payable to the date of termination; (c) deliver vacant possession of the Premises free and clear of any mortgages, charges and encumbrances; and (d) the Proceeds of Insurance relating to the building shall be paid to the Landlord. 42 Page 19 ATTACHMENT# TOREPORT# ARTICLE 14 - LIABILITY, RELEASE AND INDEMNITY Section 14. O1 Landlord Not Responsible 14.01.01 The Tenant acknowledges that the Landlord, as long as the Landlord is Her Majesty in right of Canada, is self-insured and there is no policy of insurance to cover the Landlord's liability as owner. 14.01.02 The Tenant acknowledges and agrees that the Landlord shall not be liable or responsible for any Injury to any Person or for Damage of any nature whatsoever to the Tenant or any other Person in respect of any occurrence on or after the Date of Commencement, arising from any act or omission in, upon, at or relating to the Premises or any part thereof or from the ownership, occupancy or use of the Premises or any part thereof including, without limitation; (a) any Damage to any property (including loss of use thereof) of the Tenant or of any other Person (i) from any cause whatsoever if such Property is located in or on the Premises or any part thereof; and (ii) if such Damage is caused by or results from any use of or any operation, occurrence or omission on the Premises, if such Property is not located on the Premises; (b) any Damage suffered by the Premises or the contents thereof; (c) any Damage caused or contributed to by reason of the condition of or any interruption, cessation, unavailability or failure in any utility, service, system or road; (d) any Injury or Damage insured against or required to be insured against by the Tenant; (e) any Injury or Damage caused by, resulting from, arising out of or in connection with any fault, default, negligence, act or omission of the Landlord, or Her agent, servant, employee, contractor or any other Person for whom the Landlord is in law responsible, not insured against but required to be insured against by the Tenant; and 14.01.03 (13 any Injury or Damage caused by, resulting from, arising out of or in connection with the ownership, occupancy or use of the Premises or any part thereof including any Claims against the Landlord or the Tenant resulting from occupiers liability. The Tenant further acknowledges that the liability of the Landlord, if any, will be subject to the provisions of the Crown Liability and Proceedings Act, R.S. 1985, as amended from time to time. Section 14. 02 Release and Indemnity 14.02.01 The Tenant hereby expressly releases the Landlord from any Claims whatsoever which the Tenant would be entitled to advance but for this release, and covenants and agrees to indemnify and save harmless the Landlord from ,and against any and all claims, demands, losses, liabilities, obligations and expenses (including legal costs) the Landlord may suffer or Pag~ 20 ATTACHMENT# 5 TOREPORT#~-~"'~-, 2,0 of_~__ incur by reason of any claim asserted by any person resulting or arising out of or relating to: (a) the Premises and Utilities and any act, omission, misconduct, default or negligence of the Tentant, its agents, contractors, employees and servants 43 any breach, violation or non-performance of any covenant, condition, agreement or obligation in this Lease on the part of the Tenant or of the Landlord (c) the occupancy or use of the Premises and Utilities by the Tenant, its agents, contractors, employees, servants, licensees or anyone permitted to be on the Premises and for whom in law the Tenant 'may be responsible (d) directly or indirectly from the state or condition or any activity or event occurring in, upon or about the Premises (e) any inability to develop any part of the Premises for any reason whatsoever (f) any substance: (i) which is present on the Premises at any time during the Term or after the expiry or termination of this Lease, or (ii) which was released, spilled, leaked or flowed from the Lands any time during the Term or after the expiry or term/nation of this Lease provided it was present on the Lands prior to the expiry or termination of this Lease and which causes or contributes to an adverse environmental condition. Section 14.05 Tenant to Defend Action The Tenant shall, whenever the Landlord is made a party to any legal proceeding in respect of a Claim to which the Tenant's obligation to indemnify the Landlord under this Lease extends, if so requested by the Landlord, defend such legal proceeding in the name of the Landlord and pay all Costs; provided that the Tenant may not compromise, or satisfy any such legal proceeding without the Landlord's consent which consent may be unreasonably withheld. ARTICLE 15 - LAWS AND CONTROL Section 15.01 Compliance with all Laws 15.01.01 In complying with the requirements of this Lease, the Tenant covenants with the Landlord to comply with all applicable Laws of governmental authorities and shall conduct its business in accordance with and comply with any direction or certificate or occupancy permit issued pursuant to any applicable Law by any public officer. 15.01.02 The Landlord shall not be responsible to the Tenant for non-observance or violation of any Law by any other Person. 44 15.01.03 15.01.04 Page 21 ATTACHMENT# 5 , TO.POP. T# ~l .,,of The Tenant shall, upon receipt, deliver to the Landlord a copy of any notice of non-compliance with or violation of any applicable Law, and shall promptly commence to remedy such non-compliance or violation and with due diligence complete such action within a reasonable period &time. The Tenant hereby authorizes the Landlord to make inquiries of any governmental agency with respect to the Tenant's compliance with any Law pertaining to the Tenant and to the Premises or any business conducted thereon; and the Tenant covenants that it will, on demand, provide to the Landlord such written authorization as She may reasonably require. 15.01.05 The Tenant acknowledges that the Landlord is subject to the federal Access to Information Act and the federal Privacy Act. Section 16. 01 16.01.01 16.01.02 ARTICLE 16 - ENVIRONMENT Compliance with Environmental Laws The Tenant shall not cause or permit any Deleterious Substance to be brought onto or used on the Premises, any business or undertaking on the Premises, or the use of or activity on the Premises, which may cause or contribute to an adverse environmental effect with respect to the Premises, the surrounding area or the environment. The Tenant shall, at its own cost, comply with, and shall ensure that all Transferees comply with, all Laws and codes relating to environmental matters requiring the Tenant to take any action in respect of the release or leaking of any Deleterious Substance into the Premises or the groundwater or surface water, or from the Premises onto any adjacent property, land, air or water, or which results in any Deleterious Substance being released into the environment, or requiting a clean-up of any Deleterious Substance or the remedying of any damage caused by such Deleterious Substance, and shall immediately give written notice to the Landlord of the occurrence of any event in the Premises constituting an offence thereunder or a breach of this provision and, if any such event shall happen, the Tenant shall, at its own cost: (a) (b) (c) immediately notify the Landlord and thereafter give the Landlord from time to time written notice of the extent and nature of the Tenant's or the Transferee's compliance with the following provisions of this section, promptly correct any Work which is not in conformity and compliance with all Laws or codes, or cease any activity which is not in conformity and compliance with all Laws or codes, and if requested by the Landlord, obtain a certificate from an independent consultant approved by the Landlord, verifying the complete and proper compliance with the requirements of all Laws er codes or, if such is not the case, reporting as to the extent and nature of any failure to comply with the foregoing provision; promptly cease any activity which causes or permits any Deleterious Substance to be released or leaked into the Premises, the groundwater or surface water, or from the Premises onto any adjacent property, land, air or water, or which results in any Deleterious Substance being released into the environment; and verifying that this activity has ceased; 16.01.03 Page 22 ATTACHMENT# ~5' TOREPORT# Ot~.$ ,~-'-~Z. (a) remedy any damage to the Premises (including surface water and groundwater), adjacent property, or adjacent land, air or water caused by any action or failure to act occurring in the Premises or caused by the performance or lack of performance of any of the Tenant's obligations under this Article 16. 45 If any governmental authority having jurisdiction requires the clean up of any Deleterious Substance held, released, leaked, abandoned, flowing into or placed in the Premises (including surface water and groundwater) or released, leaked or flowing from the Premises onto adjacent property, or adjacent land, air or water or released into the environment, then the Tenant shall, at its own cost prepare all necessary studies, plans and proposals and submit them to the Landlord for approval, provide all bonds and other security required by such authorities and carry out the Work required, keep the Landlord fully informed with respect to proposed plans and the Work, and comply with the Landlord's reasonable requirements with respect to the plans and Work. The Tenant further agrees that if the Landlord determines, in Her sole discretion, that Her property or Her reputation is placed in jeopardy by the requirement for any such Work, the Landlord may Herself undertake such Work or any part thereof and the Tenant shall forthwith pay to the Landlord the cost of the Work plus twenty patent (20%) of such cost. Section 16.02 Landlord's Right to Environmental Audit 16.02.01 The Landlord may, at any time, enter the Premises to determine the existence of any Deleterious Substance in the Premises (including surface water and groundwater) or whether any Deleterious Substance is released or leaks from the Premises and which may cause or contribute to an adverse environmental effect, and for such purpose the Landlord may carry out any tests in the Premises. If any audit, which the Landlord causes to be done, determines that there is an adverse environmental effect, the Tenant shall, in addition to its other obligations, forthwith on demand, pay to the Landlord the full cost of such audit as Additional Rent. Section 16.03 Tenant to Perform 16.03.01 The Tenant shall, promptly on notice, at its cost, carry out and conclude any Work required by applicable Laws or codes, or requested by the Landlord to remedy any adverse environmental effect caused or contributed to by (a) the existence of any Deleterious Substance in the Premises (including groundwater and surface water); (b) the release or leaking of any Deleterious Substance fi'om the Premises; (c) the release or leaking of any Deleterious Substance into the sewer system, storm drains or surface drainage facilities at or on the Premises; or (d) any act or omission of any Person. 46 Section 16.04 Landlord May Perform Page 23 ATTACHMENT# TO REPORT# ~a,~ I/the Tenant fails to promptly commence and diligently complete any Work it is required to perform pursuant to Sections 16.01 or 16.03, the Landlord may enter the Premises and perform any such Work at the cost of the Tenant, but having commenced such Work, the Landlord shall not be obligated to complete it. No such entry shall be deemed a re-entry under this Lease or a breach of the covenant for quiet enjoyment. Section 16.05 Ownership of Deleterious Substances 16.05.01 If the Tenant brings, permits, creates or uses in the Premises any Deleterious Substance or if the conduct of any business or any other activity in the Premises or the use of the Premises causes there to be any substances in the Premises which cause or contribute to any adverse environmental effect, then, notwithstanding any provision of this Lease or role of law to the contrary, such Deleterious Substance or substances shall be and remain the sole and exclusive property of the Tenant, notwithstanding the degree of affixation of such Deleterious Substance or substances or the goods containing them to the Premises and notwithstanding the expiry, surrender or early termination of this Lease. 16.05.02 To the extent that the performance by the Tenant of the obligations contemplated in this Article 16 requires access to the Premises after the expiry, surrender or early termination of this Lease, the Tenant shall have such access only upon such terms and conditions as the Landlord may from time to time specify; and the Landlord may, at the Tenant's cost, undertake the performance of any Work in order to complete such obligations of the Tenant, but having commenced such Work the Landlord shall not be obligated to complete it. Section 16.06 Bond for Deleterious Substances 16.06.01 At least one (1) year prior to the termination or expiry of this Lease, the Tenant shall, at its own cost, engage an independent consultant approved by the Landlord to perform an environmental audit of the Premises to: (a) determine the existence and extent of any Deleterious Substance in the Premises (including surface water and groundwater), or being released or leaked from the Premises into adjacent premises, land, air or 'water, or into the environment; (b) establish the estimated cost (including the usual contingencies) to clean up such Deleterious Substance or repair the damage caused by it and, in either case, returning the Premises or damaged property to a condition which is in compliance with environmental laws and codes. The Tenant shall ensure that the independent consultant provides the Landlord with a copy of the environmental audit immediately after its completion. 16.06.02 Should the environmental audit reveal that the Premises have been environmentally damaged due to the presence of a Deleterious Substance or as a result of any use or occupation of the Premises or that a Deleterious Substance is being released or leaked from the Premises, the Tenant shall 16.06.03 Page 24 ATTACHMENT# :2q of 54 forthwith post a bond in the name of the Landlord and in the amount contemplated by Section 16.06.01 (b) as security for the Tenant's remedying any adverse environmental effect. 47 The Tenant shall, at its cost, promptly commence the Work required to remedy any such adverse environmental effect and thereafter continue such Work to completion within a reasonable time, If the Tenant fails to do so or thereafter to diligently pursue to completion the remedying of such adverse environmental effect, the Landlord may, at the Tenant's cost, Herself undertake the performance of any necessary Work, calling on the bond referred to in s. 16.06.02, but having commenced such Work, the Landlord shall not be obligated to complete it. ARTICLE 17 - DEFAULT Section 17.01 Tenant's Default 17.01.01 Notwithstanding any Laws to the contrary, each of the following shall constitute an event of default ("Event of Default"): (a) the Tenant defaults in the payment of any Rent on the day appointed and such default continues for three (3) Business Days after the Landlord's written notice; (b) any of the goods and chattels of the Tenant are at any time seized in execution or attachment by any creditor of the Tenant; (c) an Event of Bankruptcy has occurred with respect to the Tenant; (d) the Tenant enters into an Assignment or Sublet of this Lease without the prior written consent of the Landlord; (e) the Tenant ceases to use the Premises for their stated purposes; (f) the Premises are vacated or remain unoccupied for fifteen (15) consecutive days; (g) any breach of the representation or warranty provisions of this Lease; the Tenant fails to observe any of the covenants and obligations in this Lease to be observed by it (other than the payment of Rent) and such failure continues for a period of fifteen (15) days (or such shorter period as may be specified in this Lease for a particular default) after the Landlord's written notice of such failure (herein "Notice of Default'). If any default under this paragraph (h) reasonably requires more time to cure than the fifteen days required therein the Tenant shall not be in default provided that the curing of the default is promptly commenced upon receipt of the Notice of Default, and with due diligence is thereafter continuously prosecuted to completion and is completed with in a reasonable time and provided that the Tenant keeps the Landlord well informed at al times of its progress in curing the default. 17.01.02 The occurrence of an Event of Default shall give rise to the rights in relation thereto set out in s. 17.02 to s. 17.03 inclusive. 48 Page 25 ATTACHMENT# 5 TOREPORT#O~ 35'-02- Section 17. 02 Landlord's Rights 17.02.01 Where them is an Event of Default, it shall be lawful for the Landlord, at Her option: (a) with or without entry, to terminate this Lease, and all the rights of the Tenant shall terminate upon the date of receipt of a notice of termination; (b) to enter the Premises for the purpose of curing any default of the Tenant, and the Tenant shall permit such entry, and the Tenant shall pay, as Additional Rent, all Costs of the Landlord in curing any default, plus a sum equal to twenty percent (20%) thereof and together with interest on the total amount at the Interest Rate as defined, but the Landlord shall not be obligated to cure or continue to cure such default, it being understood that the Landlord shall not be liable to the Tenant for any loss or damage to the Tenant's stock or business caused while curing or attempting to cure any default of the Tenant, (c) to pay on behalf of the Tenant, when due, any moneys which the Tenant has covenanted to pay under this Lease other than a sum payable to the Landlord, and the Tenant shall reimburse the Landlord for any amount so paid together with interest thereon at the Interest Rate as defined; (d) to restrain the Tenant by injunction; (e) to deny the Tenant services such as the supply of electricity, water etc.; and (f) to claim Damages from the Tenant, including consequential and indirect damages. 17.02.02 Whenever the Tenant shall be in default in the payment of any money hereunder, the Landlord may, without notice or any legal process enter upon the Lands and seize, remove and sell the Tenant's property therefrom and seize, remove and sell any property at any place to which the Tenant or any other Person may have removed it, in the same manner as if it had remained upon the Lands. 17.02.03 All Costs incurred by the Landlord as a result of any default by the Tenant shall forthwith on demand be paid by the Tenant as Additional Rent together with interest, at the rate for rent in arrears, from the date any such Costs are incurred until they are fully paid. 17.02.04 The Landlord may use such force as She deems necessary for the purpose of gaining entry to and retaking possession of the Premises, and the Tenant hereby releases the Landlord from all actions, claims and demands whatsoever in respect of any such entry or any loss or Damage in connection therewith. 17.02.05 Notwithstanding any Laws to the contrary, whenever m-entry is specifically permitted under any provision of this Lease, the Landlord's fights and the Tenant's obligations shall not be affected. 17.02.06 The Tenant agrees that if the Landlord is not able to deliver a Notice of Default or a Notice of Termination to the Tenant's last address, She may effect notice on the Tenant by posting it in the Premises, and such notice shall be deemed to have been ~ven from the date it is so posted. Page 26 ATTACHHENT# '~ .. TOREPORT# OES ._.~"'.o'~ of._55_ 17.02.07 It the Landlord re-enters or this Lease terminates prior t° the end of the term of the Lease: (a) notwithstanding any such termination or the Term thereby becoming forfeited, the provisions of this Lease relating to the consequence~ of term/nation shall survive; (b) Rent shall immediately become due and be paid up to the time of such re-entry or termination together with an mount equal to the Rent for the next ensuing three (3) months and the reasonable expenses of the Landlord as hereinafter defined; (c) the Landlord may re-let the Premises for a term to be fixed at Her discretion; (d) the Landlord may require the Tenant to pay monthly on the first day of each month following such re-entry or termination and until the expiration of the original Term any deficiency between: (i) the aggregate of the monthly instalment of Rent which would otherwise have been payable for that calendar month; and 17.02.08 (ii) the net amount of any rents received on account of the reletting of the Premises; and (e) the Tenant shall pay such Costs as the Landlord may incur in re- letting the Premises. The Tenant hereby waives: (a) the benefit of any present Laws, statutory or otherwise, which in any way may take away or diminish the Landlord's right to terminate this Lease or re-enter into possession of the Premises in pursuance of Her rights or remedies in this Lease; and any fights of redemption granted by or under any present Laws, statutory or otherwise, in the event of the Tenant being evicted or dispossessed, or the Landlord obtaining possession of the Premises by reason of the violation by the Tenant of any of the terms or conditions of this Lease or otherwise. Section 17.03 Remedies not Exclusive The fights and remedies of the Landlord specified in this Lease are cumulative and are in addition to Her rights and remedies at law or in equity or by statute, and are not exclusive or dependent upon any other fight or remedy. The right of the Landlord to claim arrears of Rent and loss or damages against the Tenant shall survive the surrender or termination of this Lease. 18.01 ARTICLE 18 - FORCE MAJEURE To the extent that either party is unable, in good faith, to fulfill or is delayed or restricted in fulfilling any of its obligations under this Lease by an event of Force Majeure, such party shall be relieved from the fulfillment of the part of its obligations affected by Force Majeure while it lasts, provided that the Tenant notifies the Landlord within five (5) Business Days of the 50¸ 18.02 18.03 Page 27 ATTACHMENT# ~' ,, TOREPORT# E)G.£ .3S'-o& of 3¢ commencement of any event which is an event of Force Majeure and provides the Landlord with a description of the facts and circumstances of the event of Force Majeure and the action to be taken to minimize the delay, all of which, in the opinion of the Landlord, justifies the delay. Notwithstanding an event of Force Majeure, the party affected shall proceed with the performance of its obligations not thereby affected. The provisions of this Article shall not excuse the Tenant from the payment of any Rent or any other obligation under this Lease including and obligation with respect to Insurance. ARTICLE 19 - ASSIGNMENT AND SUBLETTING Section 19.01 19.01.01 19.01.02 Prohibition against Assignment or Subletting The Tenant shall not assign or sublet this Lease without the consent of the Landlord, which may be unreasonably withheld. In consenting to an assignment or sublet of this Lease, the Landlord may impose any additional conditions She considers advisable, including the payment of an administrative fee and the negotiation of increased monthly rent and for processing such consent, further restrictions on the purposes for which the Premises may be used, as well as the condition that any options to renew or to extend the Term, any rights of first refusal or options on additional space, any restrictive covenants, or any other special rights which were granted to the Tenant, be rescinded. Section 19. 02 19.02.01 19.02.02 19.02.03 19.02.04 19.02.05 19.02.06 Notice of Assignment or Sublet If the Tenant intends to enter into an assignment or sublet of this Lease, it shall give prior written notice to the Landlord of such intent together with such credit, financial and business information as the Landlord requires, and shall subsequently submit to the Landlord an executed copy of such assignment or sublet which shall provide that it is subject to the Landlord's consent. The application for consent to an assignment or sublet of this Lease shall be in writing and shall set out the proposed effective date. The Landlord shall not be obligated to consider any assignment or sublet by the Tenant, if there exists an Event of Default as defined in Article 18. Such consent shall be prepared by the Landlord or Her solicitors. Any cost incurred by the Landlord in determining whether to give Her consent and executing the consent document shall be paid by the Tenant as Additional Rent prior to the Landlord executing such consent document. Such consent by the Landlord to an assignment or sublet of this Lease shall not constitute a permission to enter into any further assigounents or sublets of this Lease. Any assignment or sublet of the Lease by the Tenant without the Landlord's consent shall be null and void. Page 28 ATTACHMENT # ~.-..~ TO REPORT#~'"~'~-ffZ"' g.~ _of_3dr _ 19.02.07 19.02.08 19.02.09 Notwithstanding the Landlord's consent to an assignment or sublet of this Lease, the Tenant shall rema/n liable to the Landlord for all its obligations under this Lease. The Tenant agrees that its only remedy in respect of the Landlord's withholding of consent shall be an application to a court of competent jurisdiction for a declaration that such consent should be given. The Tenant hereby releases the Landlord from all Cia/ms whatsoever for having withheld Her consent, in any matter requiring the Landlord's consent for which She withholds consent, originally withholds consent and subsequently gives consent or for which a court of competent jurisdiction determines that such consent should have been given. 51 Seetion19.03 Assignment by Landlord 19.03.01 In the event of the sale, lease or other disposition by the Landlord of the Land, or the assignment by the Landlord oft/tis Lease or any interest herein to the extent that the purchaser, lessee or assignee assumes the covenants and obligations of the Landlord, the Landlord shall be relieved of all liability with respect to such covenants and obligations. The Tenant shall, upon request, attom in writing to such successor-in-interest. ARTICLE 20 - SUCCESSORS AND ASSIGNS Section 20. O1 Binding on Successors and Assigns 20.01.01 Subject to Article 20, this Lease and all its covenants and agreements shall be binding upon and enure to the benefit of the parties hereto and to any their successors and permitted assigns. ARTICLE 21 - ADDITIONAL PROVISIONS Section 21.01 21.01.01 21.01.02 Additional Rights of Landlord The Landlord is entitled from time to time, during normal business hours and in the presence of a representative of the Tenant, to enter the Premises in order to (a) inspect the Premises in order to determine the extent of compliance with all applicable Laws and this Lease; Co) (c) (d) enforce any provision of this Lease; carry out any of Her rights; show the Premises to prospective purchasers, encumbrancers, tenants or assignees and, during the last twelve (12) months of the Term, to place upon them a notice of reasonable dimensions and reasonably placed stating that the Premises are for sale or for rent. Notwithstanding any other provision herein, the Landlord may enter the Promises at any time where, in the Landlord's judgment, them is a real or apprehended emergency or danger to persons or property. In this event, if the Tenant is not personally present to open and permit entry into the 52 21.01.03 21.01.04 Page 29 ATTACHHENT# -~' ,, TOREPORT# 0~ g~'-D~ of 3'-/' , Premises, the Landlord may, without notice or resort to any legal process, fomibly enter the Premises without rendering Her liable therefor, and without in any manner affecting the obligations and covenants of this Lease. Except where the Landlord intends to terminate this Lease, no entry by the Landlord into the Premises or anything done in or for the Premises by the Landlord pursuant to any tight or remedy granted by this Lease or at law shall constitute a breach of any covenant for quiet enjoyment contained in this Lease or implied by law or (except where expressed by the Landlord in writing) a re-entry into the Premises, or an interference with the Tenant's possession, or be deemed to be a forfeiture, surrender or termination of this Lease, or an actual or constructive eviction, or a derogation from the Landlord's grant. Nothing in this Lease shalI be construed to impose upon the Landlord any obligation, responsibility or liability whatsoever for the maintenance or repair of the Premises except as otherwise herein specifically provided. Section 21.02 Notices 21.02.01 All notices or other communication required or permitted by this Lease shall be in writing and shall be delivered or sent by an acceptable means to an acceptable address. Acceptable means are: (a) delivery during normal business hours to the person who is the addressee or to a person responsible for receiving communications in the addressee's office, in which case it is effective when delivered; (b) delivery by registered mail, in which case it is effective when the postal system obtains a signature accepting delivery; and (c) electronic transmission to the addressee's office, in which case it is effective when receipt is acknowledged by a specific message to that effect. 21.02.02 The acceptable addresses are (a) in the case of the Landlord: Minister of Public Works and Government Services Canada 5070 Sideline 22 P.O. Box lA General Delivery Brougham, Ontario LOH lA0 Fax:(905) 649-2773 (b) in the case of the Tenant: The City of Pickering Picketing Civic Complex One The Esplanade Picketing, Ontario L1V 6K7 Fax: (905) 420-4650 Such addresses may be changed from time to time by either party ~ving notice as above provided. Page 30 ATTACHMENT# ~o of~'~ Section 21.03 21.03.01 Amendments No amendment to this Lease shall have any effect unless it is in writing and is signed by both the Landlord and the Tenant. 53 Section 21.04 21.04.01 No Partnership or Joint Venture The parties hereto expressly disclaim anY intention to create a partnership, joint venture or principal and agent relationship and agree that nothing in this Lease nor any acts on their part constitute them as partners, joint venturers or principal and agent in any way, nor shall any such acts create any relationship other than that of Landlord and Tenant, and the Tenant shall not represent itself to be an agent of the Landlord. Section 21.05 21.05.01 Members of House of Commons Not to Benefit No member of the House of Commons shall be admitted to any share or part of this Lease or to any benefit to arise therefrom. Section 21.06 Waiver 21.06.01 The failure of the Landlord to insist on the strict performance of any provisions or to exercise any right under this Lease shall not be construed as a waiver for the future of any such provisions or right or any other provision or right, or as a waiver of any subsequent breach. The consent by the Landlord to any act by the Tenant requiring such consent shall not be construed as a waiver of the requirement of such consent to any subsequent similar act. The acceptance of Rent by the Landlord shall not be deemed a waiver of any preceding breach by the Tenant of any term of this Lease, regardless of the Landlord's knowledge of such preceding breach, and no term of this Lease shall be deemed to have been waived by the Landlord unless such waiver is in writing signed by the Landlord. Section 21. 07 Further Assurances 21.07.01 The parties hereto shall execute such further assurances as may reasonably be required to give effect to any provision of this Lease. Section 21.08 21.08.01 Registration If the Tenant registers this Lease, all relevant Costs shall be the responsibility of the Tenant, it being agreed that upon the surrender or termination of this Lease, the Tenant shall at its cost remove and discharge this Lease from the title. Section 21.09 21.09.01 Bribes The Tenant hereby represents and warrants that it has not, nor has any person on its behalf, given, promised or offered to any Member of the House of Commons or to any official or employee of the Landlord, for or with a view to obtaining this Lease, any bribe, gift or other inducement and that it has not, nor has any person on its behalf, employed any person, other Page 31 ATTACHMENT# ~' ..... TOP, EPOP, T# dES .~-~2.~ of than a recognized real estate broker, to solicit or secure this Lease upon any agreement for a commission, percentage, brokerage or contingency fee. Section 21.10 Dispute Resolution 21.10.01 In the event of disagreement arising out of this Agreement, the parties hereto agree, that prior to having recourse to a court of competent jurisdiction to resolve a dispute, the parties will try to resolve their differences, and will consider alternative dispute resolution processes before resorting to litigation. Page32 ATTACHMENT#_ 55 IN WITNESS WHEREOF THE LANDLORD has executed this agreement on the ,2002. day of THE TENANT has executed this agreement on the ,2002. day of SIGNED, SEALED AND DELIVERED IN THE PRESENCE OF: THE CORPORATION OF THE CITY OF PICKERING Per: Per: HER MAJESTY THE QUEEN IN RIGHT OF CANADA Per: RON RICHARDS PROJECT SITE MANAGER PUBLIC WORKS AND GOVERNMENT SERVICES CANADA PICKERING LANDS SITE Pcr: 58. Page 33 ATTACHMENT# SCHEDULE "A" Description of Land Description - PWC Property PIN 614201 All that parcel or tract of land situate on, lying in and being part of Lot 18, Concession 6, in the City of Pickering, in the Regional Municipality of Durham, in the Province of Ontario, comprising 3.13 acres more or less, being more fully described in registered title instrument number 40368. Page 34 ATTACHMENT# '/- 't"0 REPORT#6E,'S SCHEDULE "B" Plan of Site 57 RECOMMENDATION OF THE FINANCE & OPERATIONS COMMITTEE DATE MOVED BY That City Council endorse a Memorandum of Agreement between Pickering East Shore Community Association (PESCA), Toronto and Region Conservation Authority (TRCA), Ontario Power Generation Pickering Nuclear (OPGPN) and the City of Pickering (City) for the implementation of the Frenchman's Bay Watershed Rehabilitation Project; and That the Mayor and Clerk are authorized to execute the attached Memorandum of Agreement. PICKERING REPORT TO THE Finance & Operations Committee Report Number: OES 34-02 Date: September 9, 2002 From: Everett Buntsma Director, Operations & Emergency Services Subject: Frenchman's Bay Watershed Rehabilitation Project - Memorandum of Agreement - File: MPE1000 Recommendation: That City Council endorse a Memorandum of Agreement between Pickering East Shore Community Association (PESCA), Toronto and Region Conservation Authority (TRCA), Ontario Power Generation Pickering Nuclear (OPGPN) and the City of Pickering (City) for the implementation of the Frenchman's Bay Watershed Rehabilitation Project; and 2. That the Mayor and Clerk are authorized to execute the attached Memorandum of Agreement. Executive Summary: PESCA in conjunction with the other partners has developed a five-year implementation project for the Frenchman's Bay Watershed with emphasis on alternative environmental programs, community stewardship program and an environmental volunteer monitoring program within the City of Pickering. PESCA is requesting funding approval from the Ontario Trillium Foundation for the five year period for the purposes of providing a portion of salary for the Project Coordinator as set out in Schedule 1. Financial Implications: Provide office space and necessary equipment for the Project Coordinator at the East Shore Community Centre. Background: For several years the City has provided office space, equipment and stationary for the Project Coordinator as a result of a partnership with the TRCA. The involvement of PESCA as a non-profit community group allows the Rehabilitation Project to apply for Trillium funding to assist with ongoing monetary needs. The City will continue its involvement at current levels with no anticipated increased costs. 60 Report OES 34-02 Subject: Frenchman's Bay Watershed Rehabilitation Project - Memorandum of Agreement Date: September 9, 2002 Page 2 Attachments: 1. Memorandum of Agreement EB:mld Attachments Copy: Chief Administrative Officer Division Head, Municipal Property & Engineering Recommended for the consideration of Pickering City Council Tho~a~C'J. Quinn, ~hief/~lminist~ OffiCCer ] Memorandum of Agreement made in quadruplicate this day of/June A.D. 2002 Between Pickering East Shore Community Association hereinafter referred to as "PESCA" -and- Toronto and Region Conservation Authority hereinafter referred to as the "Authority" City of Pickering hereinafter referred to as the "City" Ontario Power Generation Pickering Nuclear hereinafter referred to as "OPGPN" Interpretation It is understood that the use of the term "partner" is not intended and does not create a partnership at law between the parties Definitions Project: Frenchman's Bay Watershed Rehabilitation Project Context Whereas PESCA has been a partner in the planning and implementation of the Frenchman's Bay Watershed Rehabilitation Project with the Authority, the City of Pickering, OGPPN and other businesses and not for profit organizations; Whereas PESCA has developed, in conjunction with the other partners, a five year implementation project for the Frenchman's Bay watershed with emphasis on alternative environmental programs, community stewardship programs and an environmental volunteer monitoring program within the City of Pickering; Whereas PESCA is requesting funding approval from the Ontario Trillium Foundation for the five year period in the following amounts: Year 2002-2003 -- $25,000; Year 2003- 2004 -- $25,000; Year 2004-2005 -- $25,000; Year 2005-2006 -- $25,000; Year 2006- 2007 -- $25,000 for the purposes of providing a portion of salary for the Project Coordinator as set out in Schedule 1; ATTACHMENT ~...,,,!_, 'FO REPORT # ~"'~ -~--0 ~ Whereas the Partners have agreed, subject to availability of funding, to hire, train, manage, and provide office accommodation for the Project Coordinator and the Authority has agreed to coordinate the work in accordance with Schedule 1 on behalf of the partners; Therefore the parties hereby agree each with the other as follows: 1. PESCA Obligations PESCA agrees to: 1.1 Participate in the Frenchman's Bay Watershed Rehabiltation Project and Planning Advisory Committee; 1.2 Reimburse the Authority for the direct staff costs, benefits, and expenses related to the implementation as provided for in Schedule 1; 1.3 To pay upon receipt of invoices from the Authority within 30 calendar days; 1.4 Provide any reports required to the Ontario Trillium Foundation, or its successor, or other funders to ensure there is no disruption to the project funding; 1.5 Assist the Authority and other partners in the hiring of any subsequent replacement for the project coordinator; 1.6 Assist the partners and project coordinator in raising awareness and participation amongst members of the Pickering Community through the inclusion of periodic project updates within its publications; 2. Authority Obligations The Authority agrees to subject to available funding: 2.1 Hire, train, provide supervision and WHIMIS/First Aid/CPR training for the Frenchman's Bay Watershed Rehabilitation Project Coordinator; 2.2 Provide, in conjunction with Partners, office space and necessary equipment for the Project Coordinator; 2.3 Keep separate and detailed accounts of all expenditures for audit by the Partners and/or the Ontario Trillium Foundation as required; 2.4 Submit quarterly invoices and accounting as necessary to meet the requirements of the Trillium Corporation; 2.5 Provide interim and annual reports to the PESCA Executive; 2.6 Advise PESCA within 15 days of any issues relating to changes of staff; 2.7 Subject to the availability of funding, undertake the work program as described in Schedule 1; 2.8 Obtain any and all approvals/permits and points of access to any land (private or public); 2.9 Participate in the Frenchman's Bay Watershed Rehabilitation Project and Planning Advisory Committee. 3. City Obligations The City agrees to: 3.1 Provide office space and necessary equipment for the Project Coordinator at the East Shore Community Centre or equivalent facility; 3.2 Participate in the Frenchman's Bay Watershed Rehabilitation Project and Planning Advisory Committee. ATTACHMENT #-__/__, TO REPORT #.~ 4. OPGPN Obligations OPGPN agrees to: 4.1 Assist with the delivery/implementation of programs that occur on OPGPN property; 4.2 Provide technical support with respect to procedures/protocol/security issues and obtain approvals/access to areas of OPGPN properties; 4.3 Provide necessary equipment for the Project Coordnator as described in schedule 1; 4.4 Participate in the Frenchman's Bay Watershed Rehabilitation Project and Planning Advisory Committee. Planning Advisory Committee The Planning Advisory Committee will be comprised of two subcommittees; the 'Working' sub-committee and the 'Executive' subcommittee. Both sub-committees will work in cooperation to resolve conflicts and make decisions that will ensure the Frenchman's Bay Watershed Rehabilitation Project remains on-schedule and that all deliverables are achieved as set out in schedule 1. 5.1 Working Sub-committee Roles and responsibilities: 5.1.1 The 'working' sub-committee will be made up of a representative from PESCA and the Project Coordinator; 5.1.2 Daily operations and functions will be implemented though setting prc~ect priorities and developing implementation strategies; 5.1.3 Responsible for the hiring of summer and part-time contract staff; 5.1.4 Given the authority to spend money on behalf of the collaborative; 5.1.5 Decision making process consensus; in the event that the decidon making process breaks down the conflict will be brought to the Executive Sub-committee's attention for conflict resolution. 5.2 Executive Sub-committee Roles and responsibilities: 5.2.'1 The 'executive' sub-committee will consist of representatives fromeach project partner (including PESCA, City, TRCA, OPGPN, Community Liasion and the Project Coordinator) NOTE: Members of the community will be invited to act as the community liaison through a news release that is sent to local media; 5.2.2 Quarterly meetings or as deemed necessary by all project partners; 5.2.3 Put forth strategic implementation plan to project partners for final approvals; 5.2.4 Provide yearly strategic direction, monitor financial situation; 5.2.5 Provide yearly reporting (financial summary- thought this was PESCA); 5.2.6 Decision making process by majority vote; in the event that the decision making process breaks down conflicts will be resolved by neutral mediator that will be contracted. NOTE: At this stage of conflict, all parties will respect the outcome of a pre-determined mediator. In the event that a mediator must be contracted the Trillium Foundation will be made aware of the situation. 63 Changes in the Scope of Work Changes in the scope of work program shall be made in consultation with th~ City of Picketing and the Planning Advisory Committee for the FBWRP and shall be subject to approval of both PESCA and the Authority. Term The term of the agreement shall commence October 1~t 2002, and continue until September 31st 2007. Changes to Contributing Partners In the event one or more of the contributing partners has to withdraw from the project and agreement, the remaining partners agree to continue on a revised cost sharing basis and/or accept a new partner to ensure continuation ofthe project; if the remaining partners are unable to agree upon a revised cost sharing basis and/or agree to a new partner or partners, the remaining partners agree to terminate those FBWRP projects in progress on a mutually agreeable, timely and cost-effective manner. 9.2 9.3 Termination 9.1 If the Authority does not perform its obligations by the Agreement, PESCA shall notify the Authority, in writing, of the deficiency with particulars thereof and the Authority shall within (30) days of receipt of notice; 9.1.1.1 rectify the deficiency; or 9.1.1.2 meet with the PESCA Executive; in order to agree to the appropriate remedial action. If the deficiency is not rectified or appropriate remedial action is not taken within a (30) day period after the meeting noted in 5.1 P~CA may terminate this agreement subject to payment to the Authority for work satisfactorily completed to the date of termination. In the event that sufficient funds are not provided to cover the terms of the contract, the Authority is relieved of itsobligations pursuant to this agreement. In witness whereof PESCA, the Authority the City of Pickering and the OPGPN, by their respective duly authorized signing officers, have duly executed this agreement on the date and year first written above. For Pickering East Shore Community Association For Toronto and Region Conservation Authority President Chair CAO For Ontario Power Generation Pickering Nuclear For The City of Pickering Department Manager, Pickering Environment Mayor CAO Schedule 1' Pickering East Shore Community Association Frenchman's Bay Watershed Rehabilitation Project A proposal to the Ontario Trillium Foundation March 22, 2002. RECOMMENDATION OF THE FINANCE & OPERATIONS COMMITTEE DATE MOVED BY That Report CS 19-02 concerning 2002 Final Tax Due Dates for Commercial, Industrial and Multi-Residential Realty Tax Classes and Tax Rates, be received for information; and That the 2002 tax rates for the non residential properties for the City of Pickering be approved as contained in Schedule A to By-law #~019/02 attached hereto; and That the attached By-law #6019/02 providing for the imposition of the Non Residential tax rates approved under Recommendation 1 above, be read three times and approved; and That the Director, Corporate Services & Treasurer be authorized to issue the FINAL 2002 Tax Bills for commercial, industrial and multi-residential properties with a due date of October 29th, 2002; and That the Director, Corporate Services & Treasurer be authorized to make any changes or undertake any actions necessary, including altering the due date, in order to ensure the tax billing process is completed; and That the appropriate officials of the City of Pickering be given authority to give effect hereto. PICKERING REPORT TO THE FINANCE & OPERATIONS COMMITTEE Report Number: CS 19-02 Date:September 11,2002 67 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2002 Final Tax Due Dates for Commercial, Industrial and Multi- Residential Realty Tax Classes and Tax Rates Recommendation: 1. That it is recommended that report CS 19-02 of the Director, Corporate Services & Treasurer be received for information and' that: 2. The 2002 tax rates for the non residential properties for the City of Pickering be approved as contained in Schedule A to By-Law #6019/02 attached hereto; The attached By-Law #6019/02 providing for the imposition of the Non Residential tax rates approved under Recommendation 1 above, be read three times and approved; The Director, Corporate Services & Treasurer be authorized to issue the FINAL 2002 Tax Bills for commercial, industrial and multi-residential properties with a due date of October 29th, 2002; 5. The Director, Corporate Services & Treasurer be authorized to make any changes or undertake any actions necessary, including altering the due date, in order to ensure the tax billing process is completed; and, 6. The appropriate officials of the City of Pickering be given authority to give effect hereto. Executive Summary: Adoption of the above recommendations and passing the attached By-Law provides for the final 2002 tax billing for the commercial, industrial and multi-residential properties. Financial Implications: The attached By-law is for the FINAL billing of 2002 property taxes for commercial, industrial and multi-residential properties. This billing will raise approximately $19.8 million in property taxes for the City, Durham Region and School Boards. 68 Report CS 19-02 Date: September 11, 2002 Subject: 2002 Final Tax Due Dates for Commercial, Industrial and Multi- Page 2 Residential Realty Tax Classes and Tax Rates Background: The City of Pickering will soon be in a position to issue the final 2002 property tax bill in accordance with the capping provisions of Bill 140 Continued Protection For Property Taxpayers Act, passed by the Province on December 4, 2000 and implemented through various regulations. This legislation was put in place to limit assessment reform related increases to 5% per year on commercial, industrial and multi-residential properties. Under this legislation, property owners facing increases due to property assessment reform had their increases "capped" (reduced). Conversely, those properties experiencing decreases were limited to that permitted under the legislation. This meant that taxes have to be "clawed back" from those experiencing decreases to fund the loss of revenue resulting from the capped increases. The funding of the capping protection is "paid for" on a Region wide basis. The Region of Durham acts like a banker in this process. In other words, the total cost of the capping protection for example the commercial tax class is paid for by the other commercial properties throughout the Region by having a portion of their related property tax decrease withheld (clawed back). As part of the Region wide process, City of Pickering uses a Provincial database program called "Online Property Tax Analysis" or OPTA to verify non residential assessment data. Every municipality within Durham Region uses the OPTA system. The OPTA system became operational in mid-July and taxation staff worked throughout the summer verifying the data and investigating the discrepancies. On August 28, 2002, the data in the OPTA data base was frozen which meant that the area municipalities would have completed their specific identification and were satisfied with the quality of the data to be use for billing purposes. On September 11, 2002, Durham Region Council approved Report #2002- F-55, and its corresponding By-Law 42-2002 where Durham Region Council approved the "clawback percentages" for the various property classes. This then allowed us to draft this report and recommendations. For this year, the City of Pickering issued an interim tax bill to these realty property tax classes with two installment dates (February 27th and April 26th). The proposed final installment date of October 29th, provides these tax classes with some additional time to pay their tax bill. Schedule A below, provides a breakdown of the final billing dates for the non residential tax classes from 1999 to 2001. Schedule A Non Residential Final Billing Dates Year Number of Date Installments 1999 One 2000 One 2001 One December 15, 1999 October 13, 2000 October 29, 2001 Report CS 19-02 Date: September 11, 2002 Subject: 2002 Final Tax Due Dates for Commercial, Industrial and Multi- Page 3 Residential Realty Tax Classes and Tax Rates 69 As Schedule A indicates, the proposed 2002 final due date follows the pattern established during the last three years. The one installment date will assist the City in managing its cash flow due to the fact a School Board payment of approximately $9.9 million is required on September 30th . 2002 Tax Rates for Non Residential Tax Classes The final 2002 tax rates for the non residential tax classes (commercial, industrial and multi-residential) are submitted to Council for approval in the form of the 2002 Non Residential Tax Levy By-Law (Appendix A). Table One below, provides a comparison of the property tax rates levied on the various non residential tax classes. Table One 2001 & 2002 Non Residential Property Tax Rates Property 2001 2002 % Tax Class Tax Rate Tax Rate Change Commercial .03563111 .03625530 1.8 Office Building .05520550 .03625530 -34.3 Shopping Centre .02904059 .03253900 12.1 Industrial .04825947 .05253551 8.9 Large Industrial .07717928 .06253915 -19.0 Multi-Residential .02992862 .03028512 1.2 As the above table indicates there were some significant tax rate shifts among the various tax classes especially for the Office Building, Shopping Centre and Large Industrial Tax Classes. The significant changes are mainly due to the change in tax ratio's and to a smaller degree the change in education rates. Table Two provides a breakdown of the tax ratios changes for this year. Table Two Tax Ratio Changes Property 2001 2002 % Tax Class Tax Ratio Tax Ratio Change Large Industrial 3.6104 2.9000 -19.68 Office Building 2.2960 1.4819 -35.46 Shopping Centre 1.2078 1.3300 10.12 Multi Residential 2.4900 2.4000 -3.61 As Table Two indicates, the changes to the tax ratios translated into significant tax rate changes. (Tax ratios are used to define the rate or each property class in relation to the tax rate for the residential/farm class of property. As a benchmark, the residential ?0 Report CS 19-02 Date: September 11,2002 Subject: 2002 Final Tax Due Dates for Commercial, Industrial and Multi- Page 4 Residential Realty Tax Classes and Tax Rates tax rate is set at 1.) The lowering of tax ratios was partially offset by the budgetary increases approved both by the City of Pickering and the Region of Durham. Impact of Tax Ratio Chanqes on the 2002 & 2003 Budget In March of this year, Durham Region Council approved Report #2002-F-18 recommending a long term strategy regarding tax rate policy. The long term goals of the strategy are: elimination of the large industrial tax class and the multi- residential tax class be gradually reduced until it reaches the commercial class. The Large Industrial tax class attracted the highest taxes within the current property tax structure. The previous large industrial tax ratio of 3.6104 translated into Durham Region having the highest large industrial taxes within the GTA. In Durham Region, the large industrial property owners have formed the Large Industrial Alliance and they are continuing to pressure Durham Region elected officials and staff to reduce the tax rate through the tax ratio. As the tax ratio is reduced, the tax responsibility is shifted to the remaining property taxpayers and in Pickering the shift is made primarily to the residential property owner (being the largest property tax class). It is staffs understanding that the Large Industrial Alliance is continuing to ask for the large industrial tax ratio to be adjusted downward even after such a significant decrease this year. In addition, the previous large industrial tax ratio was above the Provincial average and therefore, Durham Region municipalities could not pass along municipal budget increases in the form of increased taxes to the industrial property owners. The reduction of the tax ratio this year, permits the passing of budgetary increases to the large industrial taxpayer. The Durham Region 2001 office building tax rate was the highest the GTA due to the high tax ratio. The decrease in the tax ratio for the 2002, have made our office building tax rate competitive within the GTA. The City of Pickering currently has fourteen properties classified under the multi-residential tax class category and the decease in the 2002 tax ratio had a minimal impact on this year's taxes. The decrease in the office building and large industrial tax rates have a negative impact on our current 2002 and 2003 fiscal plan. As Council is aware, the City is able to retain the education portion of the property taxes for the Payment-in-Lieu (PIL) properties such as the Ontario Power Generation (OPG) Nuclear Plant. The estimated loss for this year on PIL properties is estimated to be approximately $550,000. (A preliminary estimate of the shortfall was provided in Council report CS 12-02). It is anticipated that this shortfall may be offset by anticipated successful assessment appeals currently under way by the City. When Council passed the 2002 budget in April 2nd, of this year, taxation staff did not have the final 2002 education rates. These 2002 education rates were finalized during the last week of June. If the PIL tax loss was incorporated into the 2002 budget, the 2002 budget would have increased from 7.66% to approximately 9.8% increase. If the Region continues to decrease the large industrial tax rate, the City may lose an additional $250,000 for the 2003 taxation year. Report CS 19-02 Date: September 11, 2002 Subject: 2002 Final Tax Due Dates for Commercial, Industrial and Multi- Page 5 Residential Realty Tax Classes and Tax Rates Therefore, property taxes may have to increase next year to make up for the Durham Region taxation policy changes. Recommendation 5 will allow the Director of Corporate Services & Treasurer some latitude, limited by Provincial legislation, in effecting whatever may be necessary in order to ensure the taxes are billed properly and in a timely fashion. Any revised due date established by the Treasurer would be governed by Section 399 subsection (6) of the Municipal Act that states that the due date is fixed as 21 days after the billing date. Bill 140 Statistics Bill 140 basically limits the 2002 tax increase to 5% of the 2001 taxes plus the municipal budgetary increase. In other words, Bill 140 puts a cap or ceiling on municipal tax increases. Therefore, for the shopping center class, their 2002 taxes are based on 2001 taxes plus 5% plus the budgetary increase. In other words, the increase in the shopping center tax ratio is offset by capping protection. The capped increase is paid for by those property owners who have their assessment related decrease clawed back or with held. The cost of capping protection is funded with-in the same property tax class. This means that the capping protection provided to the industrial tax class is "paid for" by clawing back or with holding assessment related property decreases from industrial property owners. The Region wide claw back percentages for 2002 are presented below in Table One. Table Three Comparison of Property Tax Claw back Percentages for 1998 to 2002 Col. A Col. B Col. C Col. D Col. E 1998 1999 2000 2001 2002 Property Class Multi-Residential 67.6% 66.5% 48.8% 100.0% 37.3% Industrial 79.9% 66.7% 60.3% 29.6% 20.7% Commercial 74.2% 57.7% 45.9% 59.2% 69.2% For 2002, an industrial property owner will be able to keep 79.3% (1 - 20.7%) of their assessment related decrease. The claw back percentage increased for the commercial tax class due to the change in tax ratio for the shopping center class and problems associated with the treatment of new construction properties. New Construction Properties In the 1999 Ontario Budget, the Provincial government made a commitment to level the playing field between newly constructed business properties and capped properties. The reason for the change was due to the fact a new business could be paying higher taxes then a comparable property located across the street receiving capping 72 Report CS 19-02 Date: September 11, 2002 Subject: 2002 Final Tax Due Dates for Commercial, Industrial and Multi- Page 6 Residential Realty Tax Classes and Tax Rates protection. The Province fulfilled its commitment by passing the "More Tax Cuts for Jobs, Growth and Prosperity Act" in December 1999, to change the tax treatment of newly-constructed business properties under the existing capping legislation. In December 2000, the Province passed Bill 140 the "Continued Protection for Property Taxpayers Act which expanded the definition of those properties that are eligible to be deemed as new construction and changed the methodology for the tax treatment of these properties. Under the new rules, taxes for properties deemed as newly constructed would be taxed at the the lower of: · Current value assessment multiplied by the tax rate. The average level of taxation for up to six similar properties in the vicinity of the subject property. (Municipal Property Assessment Corporation (MPAC) is responsiblefor providing up to six comparable properties). The six comparable properties could be capped and therefore, indirectly, capping protection is being provided to the new constructed property. Under Bill 140, the Province expanded the definition of new construction to include the following significant changes: · Newly constructed commercial, industrial and multi-residential properties; · Commercial, industrial and multi-residential land that undergoes subdivision or severance; · Commercial, industrial and multi-residential properties that undergo a renovation or addition that increases the assessed value of the property by 50% or more; · Properties that change classificiation from an uncapped class to a capped class or between classes; · Property that used to be emempt from taxation and becomes taxable in the commercial, industrial or multi-residential class. With the expanded definition of the new construction category, more properties are now eligible for the potential beneficial tax treatment of new construction properties. Unfortunatley, current Provincial legislation, does not permit new construction properties to be clawed back. Therefore, the capping protection provided to properties deemed as new construction is funded by the existing property taxpayers and in turn increases the amount clawed back. Report CS 19-02 Date: September 11, 2002 Subject: 2002 Final Tax Due Dates for Commercial, Industrial and Multi- Page 7 Residential Realty Tax Classes and Tax Rates ?3 Attachments: 1. 2002 Final Tax Due Dates and Tax Rates for Commercial, Industrial and Multi- Residential Realty Tax Classes Prepared By: Stan Karwowski Manager, Finance & Taxation Approved / Endorsed By: Gillis A. Paterson Director, Corporate Services & Treasurer GAP:vw Attachment Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council ~,... ,, Thd'm~s J. QuirtS, Chief/C, dmini~e OffiCer 7,1 ATTACHHENT# I _TOREPOP, T#_~.,!'~- og. THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. 6019/02 Being a by-law of The Corporation of the City of Picketing to Establish the 2002 tax rates for the Commercial, Industrial and Multi-Residential realty taxes and to levy the FINAL commercial, industrial and multi-residential taxes for the year 2002. WHEREAS it is necessary for the Council of The Corporation of the City of Picketing, pursuant to the Municipal Act, R.S.O. 1990, ch.M.45, as amended, to pass a by-law to levy a seParate tax rate on the assessment in each property class; and, WHEREAS the property classes have been prescribed by the Minister of Finance under the Assessment Act, R.S.O. 1990, ch.A.31, as amended and its Regulations; and, WHEREAS it is necessary for the Council of The Corporation of the City of Picketing, pursuant to the Municipal Act, to levy on the whole ratable property according to the last revised assessment roll for The Corporation of the City of Picketing the sums set forth for various purposes in Schedule '%", for the current year; and, WHEREAS the Regional MUnicipality of'Durham has passed By-law No. 22-2002 to establish tax ratios and By-Law 21-2002 to adopt estimates of all sums required by The Regional Municipality of Durham for the purposes of the Regional Corporation and By- Law 25-2002 to set and levy rates of taxation for Regional Solid Waste Management and By-law No. 23-2002 to set and levy rates of taxation for Regional General Purposes and set tax rates on Area Municipalities; and, WHEREAS it is necessary for the Council of The Corporation of the City of Pickering pursuant to the Municipal Act, to levy on the whole ratable property according to the last revised assessment roll for The Corporation of the City of Pickering for the current year; and, WHEREAS an interim levy was made by the Council of The Corporation of the City of Picketing (pursuant to By-law No. 5951/02) before the adoption of the estimates for the current year; and, WHEREAS sub section 392(4) and (5) of the Municipal Act, as amended, permits the issuance of separate tax bills for separate classes of real property for year 2002. NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: For the year 2002, The Corporation of the City of Picketing (the "City") shall levy upon the Property Classes (commercial, industrial and multi-residential) as set out in Schedule "A", the rates of taxation as set out in Schedule "A", for the City of Pickering, the Region of Durham and for Education purposes on the current value assessment as also set out in Schedule "A". Where applicable, taxes shall be adjusted in accordance with Bill 140, as amended and its Regulations. The levy provided for shall be reduced by the amount of the interim levy for 2002. The 2002 final tax calculations for the industrial, commercial and multi-residential realty tax classes is based on the "cut-off' date as of August 28, 2002. The decrease retained percentage for the realty class is outlined below: Multi residential 62.7082% Commercial 30.7558% Industrial 79.3314% The 2002 taxes owed for the commercial, industrial and multi-residential assessed properties shall be due in one installment on October 29, 2002 or as adjusted by the Treasurer. Except in the case of taxes payable under Section 33 and 34 of the Assessment Act, R.S.O. 1990, c.A31, as amended, the percentage charge as a penalty for non-payment of taxes and monies payable as taxes shall be added to eve~ tax or assessment, rent or rate of any installment or part thereof remaining unpaid on the first day of default and on the first daY of each calendar month thereafter in which such default continues but not after December 31 of the year in which the taxes become payable, and it shall be the duty of a Tax Collector, immediately to collect at once, by distress or otherwise under the provisions of the applicable statutes all such taxes, assessments, rents, rates or installments or parts thereof as shall not have been paid. on or before the several dates named as aforesaid, together with the said percentage charges as they are incurred. If any section or portion of this By;law is found by a court of competent jurisdiction to be invalid, it is the intent of Council for The Corporation of the City of Pickering that all remaining sections and portions of this By-law continue in force and effect. Taxes shall be payable to the Treasurer, City of Pickering. This By-law comes into force on the date of its final passing. BY-LAW read a first, second and third time and finally passed this 7th day of October, 2002. Wayne Arthurs, Mayor Bruce Taylor, Clerk ?,5 ?6 2002 City CVA Tax Rate By-Law No. 6019102 Schedule A 2002 Non Reslden6al Tax Rates Region Education Tax Rate Tax Rate ProDerW C~ass Muiti-Resk:lemial 47,550,0750.00901342 0.0175417 0.00373000 Commercial 428,127,130 0.00556541 0.01083126 0.01985863 CommerciaFGa~eral 3,523,818 0.00556541 0.01083126 XXXXXXX Commercial - Excess Land7,642,732 0.00389579 0.00758167 0.01390104 Commercial Vacant Land 9,185,000 0.00389579 0.00758167 0.01390104 Shopping Centres 208,737,885 0.00499493 0.00972102 0.01782305 Shopping Contres Excess Land 227,625 0.00349645 0.00680471 0.01247614 Office Building 9,903,976 0.00556541 0.01083126 0.01985863 Office Building Excess Land 69,612 0.00389579 0.00758167 0.01390104 Industrial 107,660,793 0.00848688 0.01651697 0.02753166 Industrial Excess Land 4,448,911 0.00551647 0.01073625 0.01789558 Industria~ Vacant Land 24,212,0000.00551647 0.01073625 0.01789558 Large Industrial 22,390,9510.01089121 0.02119622 0.03045172 Large Industrial- Excess Land 406,240 0.00707929 0.01377754 0.01979362 Parking Lot Full 67,000 0.00556541 0.01083126 0.01985863 Parking Lots Excess Land 1,158,000 0.00389579 0.00758167 0.01390104 Pipelines 20,088,0000.00461712 0.00898573 0.01730720 895,399,748 Total Payments in Lieu ProDeltie~ Total Tax Rpte Pickedng Region Education TOTAL 0.03028512 428,589 834,109 177.362 1,440,060 0.03625530 2,382,7034,637,1568,502,018 15,521,878 0.01639667 19,611 38,167 57,779 0.02537850 29,774 57,945 106,242 193,961 0.02537850 35,783 69,638 127,681 233,102 0.03253900 1,042,6312,029,1453,720,346 6,792,122 0.02277730 796 1,549 2,840 5,185 O.O362553O 55.120 107,273 196,679 359,072 0.02537850 271 528 968 1,767 0.05253551 913,704 1,778,2302,964,080 5,656,015 0,03414830 24,542 47,765 79,616 151,923 0.03414830 133,565 259,946 433,288 826,799 0.06253915 243,865 474,604 681,843 1,400,311 0.04065045 2,876 5,597 8,041 16,514 0.03625530 373 726 1,331 2,429 0.02537850 4,511 8,78o 16,097 29,388 0.03091005 92,749 180,505 347,667 620,921 Commercial Full 37,586,852 0.00556541 0.01083126 0.01985863 0.03625530 Commercial Full - Shared PIL 21,228,820 0.00556541 0.01083126 0.01985863 0.03625530 Commercial Full-Tax. Tenant 1,724,8570.00556541 0,01083126 0.01985863 0.03625530 Commercial Gen 2,114,7780.00556541 0.01083126 XXXXXXXX 0.01639667 Cemmercial Full - Excess Land 7,847,7280.00389579 0.00758167 0.01390104 0.02537850 Commercial Gen- Vacant Land 1,965,0000.00389579 0.00758167 XXXXXXXX 0.01147746 Commercial Vacant Land Full 0.00389579 0.00758167 0.01390104 0.02537850 Office Bui~in9 Full -Shared PIL 19,611,375 0.00556541 0.01083126 0.01985863 0.03625530 Office Building Gen 0.00556541 0.01083126 XXXXXXXX 0,01639667 Office Building ExcessLand Full 0.00389579 0.00758167 0.01390104 0.02537850 Office 6uirding ExcessLand Gert 0.00389579 0.00758167 XXXXXXXX 0.01147746 industrial Full 896,945 0.00848688 0.01651697 0.02753166 0.05253551 ffidustrial Gen 0.00848688 0.01651697 XXXXXXXX 0.02500385 Industrial Full- Shared PIL 9,807,6520.00848688 0.01651697 0.02753166 0.05253551 ffidustnal Full- Tax Tenant 100,440 0.00848688 0.01651697 0.02753166 0.05253551 Ind Excess Land - Shared PIL 6,712,2370.00551647 0.01073625 0.01789558 0.03414830 ffidustdal Excess Land Gert 0.00551647 0.01073625 XXXXXXXX 0.01625272 Industrial Vacant Land Full 1,220,5000.00551647 0.01073625 0.01789558 0.03414830 industrial Vacant Land (.~en 37,500 0.00551647 0.01073625 XXXXXXXX 0.01625272 Large Industrial Full - Shared PIL 36,331,950 0.01089121 0.02119622 0.03045172 0.06253915 Large I~ustdal Gen 0.01089121 0.02119622 XXXXXXXX 0.03208743 Large Ind. Excess Land - Shared Pi[ 551,540 0.00707929 0.01377754 0.01979362 0.04065045 $ 5,411,463 $ 10,531,661 $ 17,366,099 $ 33,309,223 209,186 407,113 746,423 1,362,723 118,147 229,935 421,575 769,657 9,600 18,682 34,253 62,535 11,770 22,906 34,675 30,573 59,499 109,092 199,164 7,655 14,898 22,553 109,145 212,416 389,455 711,016 7,612 14,815 24,694 47,121 83,236 161,993 270,021 515,250 852 1,659 2,765 5,277 37,028 72,064 120,119 229,211 6,733 13,104 19,836 207 403 609 395,699 770,100 1,106,370 2,272,169 3,905 7,599 10,917 22,420 Total PILS 147,738,174 $ 1,031.348 $ 2,007,184 $ 3,235,686 $ 6,274,219 Total Assessment 1,043,137,922 Footnotes Payments in lieu of taxes at the General Rate excludes the education tax rate component. $ 6,442,811 $ 12,538,846 $ 20,601,785 $ 39,583,442 77 RECOMMENDATION OF THE FINANCE & OPERATIONS COMMITTEE DATE MOVED BY That Report CS 16-02 concerning the Establishment of the Ontario Transit Renewal Reserve Fund (OTRRF) from the Director, Corporate Services & Treasurer, be received; and That Council authorize the submission by the Ajax Pickering Transit Authority (APTA) to the Provincial Ministry of Transportation for funding under the Ontario Transit Renewal Program; and That Council approve the establishment of the Ontario Transit Renewal Reserve Fund; and That the Mayor and Clerk be authorized to execute any agreements between the Province of Ontario and the City of Pickering related to the Ontario Transit Renewal Program; and 4. That the attached By-law be read three times and passed; and That the appropriate officials of the City of Pickering be authorized to take the necessary actions to give effect thereto. PICKERIN_G REPORT TO THE FINANCE & OPERATIONS COMMITTEE Report Number: CS 16-02 Date: August 6, 2002 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Establishment of the Ontario Transit Renewal Reserve Fund (OTRRF) Recommendation: It is recommended that Report CS 16-02 from the Director, Corporate Services & Treasurer be received and that: Council authorize the submission by the Ajax Pickering Transit Authority (APTA) to the Provincial Ministry of Transportation for funding under the Ontario Transit Renewal Program; Council approve the establishment of the Ontario Transit Renewal Reserve Fund; the Mayor and Clerk be authorized to execute any agreements between the Province of Ontario and the City of Pickering related to the Ontario Transit Renewal Program; 4. the attached By-Law be read three times and passed; and, 5. the appropriate officials of the City of Pickering be authorized to take the necessary actions to give effect thereto. Executive Summary: Not applicable Financial Implications: The receipt of this grant for one third funding for these vehicles will have a positive impact upon the 2002 financial picture for APTA and the participating municipalities. At the time of reviewing the 2002 budget none of several potential sources of external funding could be confirmed. Therefore, the 2002 Budget for APTA included the expenditures for these vehicles and the funding from the municipalities from the redirected GO Transit funding transferred from the Region of Durham to Pickering and Ajax. Report CS 16-02 Date: August 6, 2002 Subject: Establishment of the Ontario Transit Renewal Reserve Fund Page 2 79 Now that we are reasonably certain of funding for these vehicles under this program application to the Ministry of Transportation can now be made. If successful, it will mean that less funds need to be transferred from Pickering to APTA leaving money in the Transit Reserve to assist in funding the 2003 capital requirements for APTA. Background: In January of this year, the Province released its report entitled "Strategic Transportation Directions" that outlined its transportation strategy for the Central Ontario region. The Province's report acknowledged the importance of transit as a crucial element to the Province's economic success and also stated that the Province is committed in providing $9 billion investment over ten years for transit funding. Under this program, Ajax Pickering Transit Authority (APTA) will receive one third funding for the purchase of any public transportation vehicle or for any major Vehicle refurbishment. For this program, a "public transportation vehicle" is defined as a street car, bus or trolley bus used for public transportation. As the program title indicates, this program can only be used for transit vehicle replacement and not for transit fleet expansion. APTA received notification that they are able to receive funding in the amount of $873,126 under the Ontario Transit Renewal Program (OTRP). (City of Pickering's share of this grant would be approximately $436,563.) As a requirement of the OTRP grant, the City of Pickering has to establish a separate reserve fund, to be known as the Ontario Transit Renewal Reserve Fund. The current application covers $575,000 for conventional transit (3 buses) and $90,000 for specialized transit. Further application will be made for the balance of the funding once more details are forthcoming from the Province. The OTRP funds will be administered through the establishment of a Reserve Fund under the Municipal Act. The operation of this fund will be governed by the attached by-law. The By-Law will be governed by the provisions of the Municipal Act, and Regulations thereunder, specifically Section 163(2) regarding the establishment of the Reserve Fund and Section 167 regarding the investment of funds. The funds will be accounted for separately, invested conservatively, reported on as a separate fund and subject to the annual audit. Attached, please find for your information, the letter from the Ministry of Transportation and the draft Letter of Agreement between the City of Pickering and the Province of Ontario regarding the Ontario Transit Renewal Program. Also attached is a letter from APTA to the Ministry of Transportation making application for the funding. Ajax is taking similar actions and setting up a Reserve Fund. $0 Report CS 16-02 Date: Subject: Establishment of the Ontario Transit Renewal Reserve Fund August 6, 2002 Page 3 Attachments: o Ontario Transit Renewal Reserve Fund By-Law Draft Letter of Agreement Between the Province of Ontario and City of Pickering Regarding the Ontario Transit Renewal Program Letter from Ministry of Transportation dated June 21,2002 Letter dated July 31,2002 from APTA to the Ministry of Transportation Prepared By: Approved / Endorsed By: Manager, Finance & Taxation A. Paterson Director, Corporate Services & Treasurer GAP:vw Attachments Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council 'ThoCna~ J. Ouinn,~hi_~ Admini~ ATTACHMENT#, THE CORPORATION OF THE CITY Of PICKERING BY-LAW NO. /O2 Being a by-law to provide for the establishment of a Reserve Fund to be knOWn as the Ontario Transit Renewal Reserve Fund. WHEREAS under the Municipal Act, R.S.O., 1990 as amended, Section 163(2) and 252, the Council of the City of Pickering may establish and maintain a reserve fund for any purpose for which it has authority to expend funds. WHEREAS the City of Pickering passed By-Law 5873/01 to execute the transit system merger agreement between the Corporation of the Town of Ajax and the Corporation of the City of Pickering that established the Ajax Pickering Transit Authority. WHEREAS it is desirable for the City of Pickering to establish such a reserve fund for the purpose of receiving funding from the Ontado Transit Renewal Fund and for the paying of transit, related expenses as defined in the Ontario Transit Renewal Agreement. NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: The establishment of a reserve fund known as the Ontario Transit Renewal Reserve Fund is hereby authorized. The Ontario Transit Renewal Reserve Fund shall consist of such moneys paid by the Province for the specific purpose of transit fleet renewal together with the investments made and earnings derived there from. The Ontario Transit Renewal Reserve Fund shall be used for the purpose of paying expenses related to transit renewal as defined under the Ontario Transit Renewal Agreement. 4. This By-Law shall come into force on the date of its enactment. BY-LAW read a first, second and third time and finally passed the September, 2002. day of Wayne Arthurs, Mayor Bruce Taylor, Clerk $2 [Note: Insert date.], 2002 ATTACHMENT# [Note: Information regarding the Municipality] Attention: Leqal Clerk RE: Letter of Agreement between Her Majesty the Queen in right of the Province of Ontario, represented by the Minister of TranspOrtation (the "Ministry") and.the [Note: Name of the. Municipality] (the "Municipality") Related to Renewal Funds to Be Provided by the Ministry to the Municipality under the OTRP (this "Letter of Agreement") This Letter of Agreement is in respOnse to the Municipality's request to the Ministry for financial assistance under the OTRP with regard to the purchase of tranSit vehicles. In consideration of the mutual covenants and agreements contained in this Letter of Agreement and the Guidelines and Requirements - Ontario Transit Renewal Pr " · · · ,, ogram 2002 (the Gu~dehnes and Requirements ) which have been reviewed . and are understood by the Municipality and are hereby incorporated by reference and other good and valuable consideration (the receipt and sufficiency of Which is hereby acknowledged), the Ministry and the Municipality covenant and agree as follows: o In recognition of the Municipality's need to replace ageing transit vehicles and the Municipality having entered into a binding agreement with a manufacturer for the purchase of such vehicles (the "Agreement"), the Ministry agrees to provide renewal funds to the Municipality in the amount of [Note: Amount], in accordance with and subject to the terms set out in this Letter of Agreement and the Guidelines and Requirements. The Municipality agrees that it shall provide a copy of the Agreement to the Ministry prior to the payment of any renewal funds by the MiniStry under this Letter of Agreement and that the terms of the Agreement must comply with the requirements under the Guidelines and Requirements. The Municipalit~ agrees that the renewal funds are to be deposited in a capital reserve account by the MuniCipality and are to be used only in accordance with the Guidelines and Requirements. The Municipality understands and agrees that the renewal funds represent the full extent of the Ministry's and Province's financial contribution towards the major refurbishment and replacement of transit vehicles and that no additional funds will be provided by either the Ministry or the Province for such purposes to the Municipality for the year 2002. 83 If the Municipality is satisfied with and accepts the terms and conditions of this Letter of Agreement, please secure the required signatures for the four.enclosed copies of this Letter of Agreement and return two fully signed copies to the undersigned for the Ministry's record. Once the Ministry has received the signed copies together with a copy of the Agreement, the Ministry will make arrangements for the payment of the renewal funds to the Municipality. Yours very truly, Norman W. Sterling Minister of Transportation I have read and understand the terms of this Letter of Agreement, as set out above, and by signing below I am signifying the Municipality's consent to be bound by these terms. CORPORATION OF THE [Note: Name of the Municipality.] Per: Mayor/Reeve Date: Per City Clerk Date: -:,TTACHMENT # 8 4Mlnistry of Mintst~re des Transportation Transports Policy, Planning and Standards Division 3= Floor, Ferguson Block 77 Wellesley St, West Toronto, Ontario, MTA tZ8 Tel: (416) 327-8521 Fax: (416) 327-8746 _'A TO REPORT #..dS' /(~ .. ~) ~.' Ontario Mr. Wayne Arthurs Mayor City of Pickering/Ajax I The Esplanade Pickering, ON L1V 6K7 Dear Mayor Arthurs: I am pleased to enclose the Guidelines and Requirements for the 2002 Ontario Transit Renewal Program, which is a key part of the new provincial transit investment plan announced by the Premier on September 27, 2001. The 2002 funding allocation for (Pickering/Ajax)is $873,126. The attached Guidelines will provide your staff with the necessary information and reporting process to access your allocation of renewal funds this year. You will note in the attached guidelines that the province is prepared to make full payment of a municipality's 2002 allocation into a municipally created capital reserve account based on the submission of a signed bus replacement acquisition order. This will assist municipalities in making any progress payments or signing costs that may be incurred this year. With these funds being maintained in a capital reserve account it is our hope that this will further encourage municipalities to .proceed with bus replacement programs. We will also be investigating alternative procurement and financing approaches which we hope will provide municipalities with some additional tools to facilitate replacement of their transit fleets. Ontario municipalities have continued to express their need to replace ageing transit fleets which contribute to higher operating costs, increased emissions, reduced service reliability and delays in achieving system accessibility. As a result, the program will target the replacement and refurbishment of municipal transit fleets over the first few years of the program; and will reduce the municipalities' share of Capital investment in these fleets by sharing up to one-third of the cost of ongoing vehicle replacement. http://www, mto.gov, on.ca -2- Staff from the ministry's Inter-Regional Transit Office will be available to assist transit staff from your mUnicipality in answering questions about eligibility and the necessary reporting requirements to access the 2002 allocation of renewal funds and to determine your municipality's eligibility for 2003 transit renewal funds. Yours sincerely, Enclosure Famed M. Amin Assistant Deputy Minister CC: Mr. Ted Galinis, General Manager, Town of Ajax/Picketing The Honourable Norman W. Stealing, Minister of Transportation ATAAJAX P~CKERING AUTHORITY ATTACHMENT # x_../ TO REPORT# C~./~- ~; Ajax Pickering Transit AUthority 110 Westney Road South Ajax, ON Canada L1S 2C8 Fareed M. Amin Assistant Deputy Minister of Transportation Policy, Planning and Standards Division Ferguson Block, 3rd Floor 77 Wellesley St. West Toronto, Ontario M4A 1Z8 July 31, 2002 Dear Fareed Amin, Acting on behalf of the Town of Ajax and City of Pickermg we are responding to the Guidelines and Requirements for the 2002 Ontario Transit Renewal Program (OTRP) application. As requested, we will be creating separate Capital Reserve Funds for the 2002 funding allocation of $873,126, to be split equally by each Municipality (50% of the full amount). Two separate reports will go before each respective Council for approval and creation of the Reserve Funds. Approval for the attached By-law requests is expected no later than September 30, 2002. Renewal funding payments for the Ajax Pickering Transit Au. thority (APTA) are to be administered by APTA Treasurer, Gil Paterson, on behalf of APTA. Enclosed please find the OTRP forms required for the July 31st submission. Also attached is the contract to purchase three (3) Orion V vehicles that was executed on June 5t~, 2002; and the signed bus overhauls replacement acquisition order for four buses, executed on July 11 ~, 2002. We look forward to further clarification concerning.the process regarding approved funding allocation for APTA's initial submission. Should you have any questions orconcerns,' please do not hesitate' to contact me. Sincerely, · ,//Ted Oalin~, General Manager t/ Ajax Picl(ering Transit Authority Copy: Regional Councillor Maurice Brermer, Co-Chair, APTA Board of Management Regional Councillor Jim McMaster, Co-Chair, APTA Board of Management Mayor Wayne Arthurs, City of Pickering Mayor Steve P. ari.'sh, Town of Ajax Thomas J. Quinn, Chief Administrative Officer, City of Pickermg Richard Parisotto, Chief Administrative Officer, Town of Ajax Neil Killens; Deputy General Manager, APTA Gil Paterson; Treasurer, APTA Greg Kirkbride, Director of Finance, Town of Ajax Pete Coghill, Ministry of Transportation RECOMMENDATION OF THE FINANCE & OPERATIONS COMMITTEE DATE MOVED BY That Report CS 20-02 concerning Cash Position Report as at June 30, 2002, from the Director, Corporate Services & Treasurer, be received for information. 88 PICKERING REPORT TO THE FINANCE & OPERATIONS COMMITTEE Report Number: CS 20-02 Date: September 11, 2002 F rom: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Cash Position Report as at June 30, 2002 Recommendation: It is recommended that Report CS 20-02 from the Director, Treasurer be received for information. Corporate Services & Executive Summary: Section 81 of the Municipal Act provides that semi-annual cash position statements be prepared by the Treasurer for the information of Council. The attached schedules provide the City of Pickering's cash position, continuity of taxes receivable, outstanding investments, development charges collected and other development contribution information for the six months ended June 30, 2002. Financial Implications: The cash position of the corporation for six months ended June 30, 2002 was a net increase in cash of $183,833. Sources of Funds totalled $71,414,104 and Use of Funds totalled $71,230,271. Background: The discussion below describes the purpose and the information contained in each of the attached schedules. Statement of Cash Position: Attachment 1 reflects the sources and uses of funds for the first six months of 2002. Subcategories have been identified to highlight those cash transactions that are significant in nature or large dollar value transactions for the City of Pickering. Continuity of Taxes Receivable: Attachment 2 summarizes the tax related transactions to June 30, 2002 and provides the outstanding taxes receivable as at June 30, 2002. This balance represents all three levels of taxes billed, such as City, Region and School Boards. The significant outstanding balance arises due to the timing of billing and tax due dates. For example, the final Residential billing was issued June 21, 2002 with tax due dates of July 15 and September 16. Therefore, since the taxes billed for June and September are reflected on this schedule the taxes receivable appear grossly disproportionate. This same anomaly will arise in the next quarter report for September Report CS 20-02 Subject: Cash Position Report as at June 30, 2002 Date: September11,2002 Page 2 89 30, 2002 as final Commercial billing is expected in September with a tax due date tentatively set for October 29. Outstandinq Investments: Attachment 3 reflects the short-term and long-term investments for both the Current Fund and the Reserve Funds outstanding as at June 30, 2002. Development Charqes Collected: Attachment 4 indicates the total development charges for the City, Region and School Boards, as the City is responsible for collecting development charges on behalf of all levels of government. The total amount collected of $1,719,340 agrees with the balance indicated under Sources of Funds on Attachment 1. However the remittance of development charges to the Region and School Boards indicated under the Use of Funds is different than the total collected on Attachment 4. This variance is a result of timing differences because payments to the Region and School Boards are due 25 days following the month collected. Other Development Contributions: Attachment 5 is provided to show other significant development contributions that have been received. This report was done in accordance with the provisions of Section 81 of the Municipal Act, R.S.O. (1990). Attachments: 2. 3. 4. 5. Statement of Cash Position Continuity of Taxes Receivables Outstanding Investments Statement of Development Charges Collected Other Development Contributions Prep.ared By: Manager, Accounting Services Approved / Endorsed By: Director, Corporate Services & Treasurer Attachments Copy: Chief Administrative Officer Recommended for the~,..~::~_sideration of Pickering City Co~_c~ ~t Thomas J. Quinn, Chief Administrative O~er. 90 ATTACHMENT #~TO REPORT# City of Pickering Cash Position Statement for the six months ending June 30, 2002 June, 2002 Sources of Funds: Accounts Receivable collected $ 561,779 Development charges collected 1,719,340 Operating 5,577,411 Grants-in-lieu: Federal 695,542 Provincial 117, 501 Ontario enterprises 4,487,520 Municipal enterprises 578,706 Linear Properties 191,133 Federal specific grants 3,260 Ontario specific grants 63,732 Interest Income 377,085 Sale of land 185,410 Tax payments received 56,350,830 POA Revenue 504,855 Total $ 71,414,104 Use of Funds: Operating and Capital Expenditures $ 12,164,935 Payroll 12,051,219 Region Levy 25,259,007 Regional portion of Dev. Charges 406,486 School Board Levies 19,828,764 School Board portion of Dev. Charges 242,025 APTA Funding 1,277,835 Total $ 71,230,271 Net Cash Increase (Decrease) $ t83,833 FINANCIAL POSITION Bank Balance Net Cash Bank Balance Dec. 31, 2002 Provided (Used) June 30, 2002 Current Fund $ 3,483,961 $ 183,833!$ 3,667,794 TOTAL $ 3,483,961 $ 183,833 $ 3,667,794 Note: Includes City, Region and Scl~ool Boards CF June 20021 NET CHANGES C 'C ATTACHMENT# ~ TOREPORT#, '~ F: ~D 0 91 W W t-' 92 ,~TTACHMENT#~ TOREPORT# ~.~;o. o.~ ATTACHHENT# ~ TOREPORT#,cs ~-o& g3 0 O0 ~0 O~ ~0 0 LLI I-- W ATTACHHENT#,,,,,,-.~- TO REPOR,T# C'~ ,~ o -o ,~ City of Pickering Other Development Contributions For six months ending June 30, 2002 CONTRIBUTIONS: Cash - In - Lieu of Parkland TOTAL CASH-IN-LIEU OF PARKLAND $70,427 $70,427 CF June 20021Other Dev. Contrbtns 9;5 RECOMMENDATION OF THE FINANCE & OPERATIONS COMMITTEE DATE MOVED BY That Report CS 21-02 concerning Formal Quotations - Quarterly Report for Information of the Director, Corporate Services & Treasurer be received and forwarded to Council for information. 96 PICKERING REPORT TO THE FINANCE & OPERATIONS COMMITTEE Report Number: CS 21-02 Date: September 9, 2002 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Formal Quotations - Quarterly Report for Information Recommendation: It is recommended that report CS 21-02 of the Director, Corporate Services & Treasurer be received and forwarded to Council 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. Given the summer recess of Council, this report has been extended to August 31,2002. Financial Implications: Not applicable 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. Formal Quotations Summary April 1, 2002 to August 31, 2002 Reference No. Description Vendor Pricing Date Awarded Q-7-2002 Card Access Provision of DBS Access $39,380.00 July 5/02 Systems card access Control system, Picketing Recreation Complex Q-9-2002 Install StreetProvision of Jen-Dan $60,387.50 August 9/02 Print street print Limited Pavement pavement Marking marking, various locations Report CS 21-02 Date: Subject: Formal Quotations - Quarterly Report for Information September 9, 2002 Page 2 9? Q-11-2002 Records Provision of Ikon Office $62,032.00 May 6/02 Management Records Solutions System Management System software, Civic Complex Q-14-2002 City Provision of CCG - York $43,480.00 March 11/02 Brochure City brochure Region 2002 for public Printing distribution Q-17-2002 Fire Safety Provision of E.L.S. Limited Fixed June 21/02 Maintenance repair to fire hourly extinguishers rates, unit and fire safety pricing maintenance Q-18-2002 Asphalt & Provision of Bennett $35,100.00 May22/02 Concrete asphalt and Paving & Repairs concrete Materials repairs, various locations Q-22-2002 Security Provision of Group 4 CPS Fixed June 20/02 Services security guard Limited hourly services rates Q~23-2002 Install Provision of Miwel $28,802.00 August 9/02 Concrete concrete Construction Sidewalk sidewalk, various locations QWC-01-2002 Supply and Provision of Playcare Inc. $43,602.25 July 9/02 Installation wood fibre of Wood safety Fibre Safety surfacing in Surfacing - playgrounds Playgrounds Q2002-1 Co-operative Provision of Lafarge Various April 30/02 quotation for various Asphalt unit pricing supply and aggregate delivery of road material Aggregates RFP-02-09 Co-operative Provision of Direct Energy Fixed unit July 5/02 proposal for natural gas Marketing price )urchase of aurchase/ Limited Natural Gas supply 95 Report CS 21-02 Date: Subject: Formal Quotations - Quarterly Report for Information September 9, 2002 Page 3 T-206-2002 Co-operative Provision of Forsythe Various August 15/02 tender for crushed Haulage unit pricing supply and gravel, variousLimited delivery of locations Crushed Gravel T-282-2002 Co-operative Provision of Vicdom Sand Various August 15/02 tender for winter sand for& Gravel unit pricing supply and winter control delivery of Winter Sand CL2002-1 Co-operative Provision of PartA Various August 2/02 tender for variety of Summum unit pricing Traffic Signs traffic signs Signs Part B Guild Electric Part C Scugog Signs T-220-00 Co-operative Provision of Tire Craft Various August 26/02 tender for tire supply, Limited unit pricing supply, retread and retread and repair of tubes repair of tires & tubes Attachments: Prepared By: Not applicable Approved / Endorsed By: Gillis Paterson Director, Corporate Services, Treasurer GAP:vw Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council~...-% , ~'/,.~' ,, Tho¢n~"J~ Ouin ,r~hief 4¢ministrati~ic~..~ RECOMMENDATION OF THE FINANCE & OPERATIONS COMMITTEE DATE MOVED BY That Report CS 17-02 regarding Municipal Performance Measurement Program from the Director, Corporate Services & Treasurer, be approved; and That the Director, Corporate Services & Treasurer be authorized to make any necessary changes to the attachments in order to ensure completeness and accuracy in the information reported to the public; and That the appropriate officials of the City of Pickering be authorized to take the necessary actions to give effect thereto. 100 PICKERING REPORT TO THE FINANCE & OPERATIONS COMMITTEE Report Number: CS 17-02 Date: September 9, 2002 Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Municipal Performance Measurement Program - Provincially Mandated Public Reporting of Performance Measures Recommendation: It is recommended that Report CS 17-02 from the Director, Corporate Services & Treasurer be approved and that: the Director, Corporate Services & Treasurer be authorized to make any necessary changes to the attachments in order to ensure completeness and accuracy in the information reported to the public; and, the appropriate officials of the City of Pickering be authorized to take the necessary actions to give effect thereto. Executive Summary: At its meeting of July 17, 2002 the Audit Committee directed that a draft of the Municipal Performance Measurement Program results be submitted to the Finance & Operations Committee prior to publication. The collection and reporting of these measures is not in any way associated with the annual audit and these measurements are being submitted and reported to the public by the Treasurer under direction of Provincial authority. As was the case in 2001, the measures were filed with the Province by the July 31 deadline. In the meantime we have continued to review and adjust these measures, as is permitted by the Province, in preparation for release to the public by the September 30 deadline. Attached are the results of that exercise that will be reported to the public. Financial Implications: None. Report CS 17-02 Date: September 9, 2002 Subject: Municipal Performance Measurement Program - Provincially Page 2 Mandated Public Reporting of Performance Measures 101 Background: Attachment 1 is the information mandated by the Province to be reported to the public by September 30, 2001. With this being the second year of Performance Measurement reporting, one must bear in mind that these measures are still evolving as feedback from municipalities are received and are taken into consideration by the Province in developing the Performance Measures to be reported upon. In Year 1, 2000, there was data collected for 35 measures of which 16 were required to be publicly reported. In Year 2, 2001, there was data collected for 25 measures and all are required to be publicly reported. Of these only 15 performance measures are applicable for the City of Pickering. The feedback received from municipalities after the first year has resulted in refinements to the way measures are defined and calculated which leads to improving the measures to better serve the interests of the public and municipal needs. However this also impacts the comparability of the results from year to year. Moreover, I must strongly emphasize that all of the foregoing makes municipality to municipality comparisons relatively meaningless. It will only be through continuing efforts, ongoing experience and further clarifications from the Province that year to year comparisons within the municipality and across municipalities will start to become meaningful. As was reported to Council in September, 2001 comments pertaining to the compilation and interpretation of the data have been included. This aids in the explanation and understanding of what is being reported. The Province has made provision for these comments and encourages their inclusion, as many municipalities do. According to the Provincial mandate the City has the following options for public reporting: 1. Direct mail to taxpayers/households 2. Insert with the property tax bill 3. Public "advertising" in local newspapers 4. Posting on the Internet In the interests of efficiency and expediency, City staff have opted for the fourth option. The information will be posted on the City's website, as was the case last year, and a notice to this effect will be included in the next "Community Page" in the local newspaper, Attachment 4. The information will also be available to anyone wishing to pick it up at City Hall. 102 Report CS 17-02 Date: September 9, 2002 Subject: Municipal Performance Measurement Program - Provincially Page 3 Mandated Public Reporting of Performance Measures Attachments: 2001 Provincial Performance Measurement Program - Public Reporting 2000 Provincial Performance Measurement Program - as reported to the public in the City's website Comparison of 2000 and 2001 Performance Measures Public Notice to be include in the Community Page of the News Advertiser Prepared / Approved / Endorsed By: GAP:vw Attachments Copy: Chief Administrative Officer Gillis A. Paterson Director, Corporate Services & Treasurer Director, Operations & Emergency Services Director, Planning & Development Solicitor for the City City Clerk Recommended for the consideration of Pickering City Council -' Th'~'a-s J. O~'inn, ~hief AS~,isi~Ctrative/Officer 2001 PERFORMANCE MEASUREMENT REPORTING CITY OF PICKERING CORPORATE SERVICES DEPARTMENT SEPTEMBER, 2002 104 OVERVIEW As required by the Ontario Government's Municipal Performance Measures Program (MPMP). The Treasurer of the City of Pickering, as part of its 2001 Financial Information Return (FIR) package, has submitted financial and related service performance measurements to the Province. This program was announced in 2000 by the Ontario Government, which requires Municipalities to collect and report data in the form of performance measurements on key service areas to the Province and the Public. The objective of the Province is: to enhance accountability by reporting to taxpayers; to increase taxpayer awareness; and, to improve service delivery by sharing best practices with comparable municipalities. As municipalities change and grow, its citizens expect to receive quality, cost effective services. Performance measurements are a means of benchmarking these services. The City is committed to refining and developing new methods of collecting data so as to have more efficient and effective benchmarking tools. The benefits of this program would not be seen immediately, as municipalities in conjunction with personnel of the Ontario Government's Municipal Performance work towards standardizing information collected in calculating the related measures which will ultimately allow for fair comparisons from year to year and across municipalities. The following results are the City of Pickering performance measures for the year 2001. Each measure is accompanied by comments regarding aspects of the measurements. The comments are an integral part in the interpretation of the performance measure results. These results should not be compared across municipalities without consideration of the comments that impact on interpreting and understanding the results. In addition, influencing factors in the collection of data or refinements while the measures are still evolving could affect the results and comparability of same year over year. CITY OF PICKERING YEAR 2001 PERFORMANCE MEASUREMENT REPORT LOCAL GOVERNMENT OPERATING COSTS FOR MUNICIPAL ADMINISTRATION AS A PERCENTAGE OF TOTAL MUNICIPAL OPERATING COSTS 2001 Results 1 O5 General Comments Detailed Comments 12.79% of total municipal operating costs The following factors can influence the above results across municipalities: · The extent to which a municipality's administrative function and costs are centralized or decentralized, · The extent to which a municipality's administrative services are provided in-house or externally. The City of Pickering operates a centralized Purchasing function, which in turns leads to a centralized Accounts Payable function. The City of Pickering also has centralized Information Technology Services and Legal Services. 106 CITY OF PICKERING YEAR 2001 PERFORMANCE MEASUREMENT REPORT FIRE SERVICES OPERATING COSTS FOR FIRE SERVICES PER $1,000 OF ASSESSMENT 2001 Results $1.31 per $1,000 of assessment General Comments The operating costs can be affected by the following factors: · Emergency response times · Number and location of fire halls Assessment value does not necessarily correlate to operating costs for fire services. The higher the assessment value, the lower the cost per $1,000 assessment. Conversely the urban/rural mix of the community will affect the results as will the size and type of commercial/industrial establishments. Number of households, response time and urban/rural mix of the municipality are factors that determine the need for fire services not the property value. CITY OF PICKERING YEAR 2001 PERFORMANCE MEASUREMENT REPORT 107 ROAD SERVICES OPERATING COSTS FOR PAVED ROADS PER LANE KILOMETRE 2001 Results $500.25 Per paved lane kilometre General Comments The following factors can influence above results: Detailed Comments the · Use of the roads by heavy equipment. · The municipality's standard for road conditions in comparison with comparable municipalities. · Kilometers of paved roads in the municipality. · The allocation of operating costs used in the determination of the numerator. At the present time, the City of Pickering does not maintain a separate cost centre to track costs that directly relates to paved roads. However, direct costs attributable to this function have been identified. The cost for administration and other related costs have been allocated to the cost for paved roads based on management's best estimate of the proportion of responsiblility dedicated to the road functions such as maintenance of paved and unpaved roads and winter control. 1 O8 CITY OF PICKERING YEAR 2001 PERFORMANCE MEASUREMENT REPORT ROAD SERVICES OPERATING COSTS FOR UNPAVED ROADS PER LANE KILOMETRE 2001 Results $4,414.35 Per unpaved lane kilometre General Comments Detailed Comments The following factors can influence the above results: · Use of the roads by heavy equipment. · The kilometres of unpaved roads in municipality in comparison with comparable municipalities. · Locations of the unpaved lanes. · The allocation of operating costs used in the determination of the numerator. At the present time, the City of Pickering does not maintain a separate cost centre to track costs that directly relates to unpaved roads. However, direct costs attributable to this function have been identified. The cost for administration and other related costs have been allocated to the cost for unpaved roads based on management's best estimate of the proportion of responsibility dedicated to the road functions such as maintenance of paved and unpaved roads and winter control. CITY OF PICKERING YEAR 2001 PERFORMANCE MEASUREMENT REPORT 109 ROAD SERVICES OPERATING COSTS FOR WINTER CONTROL PER LANE KILOMETRE 2001 Results $889.66 Per lane kilometre General Comments Detailed Comments The following factors can influence the above results: · The municipality's standard service levels for road conditions. · The kilometres of paved and unpaved roads in the municipality in comparison with comparable municipalities. · The allocation of operating costs used in the determination of the numerator. At the present time, the City of Pickering does not maintain a separate cost centre to track costs that directly relates to winter control. However, direct costs attributable to this function have been identified. The cost for administration and other related costs have been allocated to the cost for winter control based on management's best estimate of the proportion of responsibility dedicated to the road functions such as maintenance of paved and unpaved roads and winter control. 110 CITY OF PICKERING YEAR 2001 PERFORMANCE MEASUREMENT REPORT ROAD SERVICES PERCENTAGE OF PAVED KILOMETRES THAT WAS RATED GOOD TO VERY GOOD IN THE MUNICIPAL 2001 Results General Comments Detailed Comments 75.10% of the roads were rated good to very good in the municipality. The following factors can influence the above results: The municipality's standard service levels for road conditions. The kilometres of paved and unpaved roads in the municipality in comparison with comparable municipalities. The City's staff used best estimates to establish that the roads were rated good to very good in the municipality. CITY OF PICKERING YEAR 2001 PERFORMANCE MEASUREMENT REPORT 111 ROAD SERVICES PERCENTAGE OF WINTER EVENT RESPONSES THAT MET OR EXCEEDED MUNICIPAL ROAD MAINTENANCE STANDARDS 2001 Results 100.00% met or exceeded municipal road maintenance standards. General Comments Detailed Comments The following factors can influence the above results: · The municipality's standard service levels for road conditions. · The frequency and severity of the winter weather. · The kilometres of paved and unpaved roads in the municipality in comparison with comparable municipalities. The City did not experience a winter event which staff was not able to meet or exceed road maintenance standards. 1!.2 CITY OF PICKERING YEAR 2001 PERFORMANCE MEASUREMENT REPORT TRANSIT SERVICES OPERATING COST FOR CONVENTIONAL TRANSIT PER REGULAR SERVICE PASSENGER TRIP 2001 Results nger trip. General Comments The following factors can influence the above results: Detailed Comments · The service hours of the transit operations, for example the level of weekend or holiday service provided. · The population distribution and the geography of the service area. · Service levels required to accommodate passenger trips transferred from outside of the City's boundaries. · An unexpected event that may be included in operating costs that has no correlation to service levels. · The urban/rural mix of the service area. Effective September, 2001 the City operates a "joint board of management" in conjunction with the Town of Ajax which serves the transit needs of both municipalities. The City of Pickering has a GO-transit station and a shopping mall located within its boundaries that would increase the ger usage by individuals outside of Pickering's boundaries. These trips would be deemed as transfers and excluded from the denominator of passenger trips. However, the costs would be impacted to ensure that appropriate service levels are to accommodate these additional gers. For 2001, the number of passenger trips excluding transfers was 1,189,625 and used in the calculation above. The number of trips including transfers would be 1,382,356 and if these were included the cost per passenger trip would become $2.67. CITY OF PICKERING YEAR 2001 PERFORMANCE MEASUREMENT REPORT TRANSIT SERVICES NUMBER OF CONVENTIONAL TRANSIT PASSENGER TRIPS PER PERSON IN THE SERVICE AREA IN A YEAR 2001 Results General Comments 13.84 trips per person in the service area. The following factors can influence the above results: · The service hours of the transit operations, for example the level of weekend or holiday service provided. · The population distribution and geography of the service area. · The percentage of the service area to the total municipal area. 1t..4 CITY OF PICKERING YEAR 2001 PERFORMANCE MEASUREMENT REPORT SOLID WASTE OPERATING COST FOR WASTE COLLECTION PER TONNE 2001 Results General Comments Detailed Comments $67.32 per tonne. The efficiency rate can be influenced by the following factors: · The number and frequency of collection and the extent of the yard waste collection program. · Whether the service is provided internally or externally and if provided externally then the timing of the contract renewals. · The effectiveness of any 3R's initiatives and educational/promotional efforts. · The urban/rural mix and size of the municipality. The City of Pickering currently contracts out all waste collection services. CITY OF PICKERING YEAR 2001 PERFORMANCE MEASUREMENT REPORT SOLID WASTE MANAGEMENT COMPLAINTS RECEIVED IN A YEAR PER 1,000 HOUSEHOLD 2001 Results General Comments Detailed Comments 30 complaints were received in the year per 1,000 household. The efficiency rate can be influenced by the following factors: · The types of calls received. · The level of service provided. The City contracts out its services however, it manages complaints by assisting taxpayers directly. 1.1.6 CITY OF PICKERING YEAR 2001 PERFORMANCE MEASUREMENT REPORT SOLID WASTE OPERATING COST FOR SOLID WASTE DIVERSION PER TONNE PERCENTAGE OF RESIDENTIAL SOLID WASTE DIVERTED 2001 Results · $168.24 pertonne. · 8.86% of residential waste diverted. General Comments The diversion rate can be influenced by Detailed Comments the following factors: · The frequency of collection. · The type of materials included in the recycled program. · The promotion of the recycling program. · The participation in the program by residents. The collection of recycling materials (blue box) is the responsibility of the Region of Durham and results are not reported above. The performance measure indicates the diversion rate of yard waste collected as this is performed by the City. The City of Pickering has adopted grasscycling and does not collect grass clippings. Therefore, grass clippings are not included in the diversion rate above. In November, 2001 the City initiated a fully automated cart based three stream waste collection pilot project in the Amberlea area within Ward 1 which consists of 520 homes. The diversion rate on this project for November and December was 64.71%. CITY OF PICKERING YEAR 2001 PERFORMANCE MEASUREMENT REPORT 1!7 LAND USE PLANNING PERCENTAGE OF LOTS, BLOCKS AND/OR UNITS WITH FINAL APPROVAL LOCATED WITHIN THE SETTLEMENT AREA 2001 Results 100% was within the settlement area. General Comments The Region of Durham circulates draft plans to the City who in turn holds meeting and reports back to the Region: · The City ensures that the applicants meets all the required conditions. · The draft plans are then returned to the Region for final approval. The City of Pickering percentage of involvement in the approving of these plans is approximately 80% and the Region 20%. CITY OF PICKERING YEAR 2001 PERFORMANCE MEASUREMENT REPORT LAND USE PLANNING PERCENTAGE OF PRESERVATION OF ARGICULTURAL LAND IN REPORTING YEAR 2001 Results 100% of agricultural land was preserved in the reportin9 year. City of Pickering - Performance Measures ATTACHMENT ::i;'i, ! T Y H A L L ,,. TO RE¢ORT # C...~A_~ ,/? -o~ FINANCE & TAX Page 1 of 1 MUNICIPAL PERFORMANCE MEASURES General Government Operating Costs for Municipal Administration as a % of Total Municipal Operating Cost Protection Services - Fire Operating Cost for Fire Services per $1,000 of Assessment Transportation Services - Roads Operating Costs for Winter Control per Lane Kilometre Percentage of Winter Event Responses that Met or Exceeded Municipal Road Maintenance Standards Transportation Services - Transit Operating Costs for Conventional Transit per Regular Service Passenger Trip Number of Conventional Transit Passenger Trips per Person in the Service Area in a Year Environmental Services - Garbage Operating Costs for Waste Collection per Tonne Percentage of Residential Solid Waste Diverted for Recycling Total Tonnes of Residential Solid Waste Diverted for Recycling in a Year Land-Use Planning Percentage of Designated Agricultural Land Preserved During the Year 2000 RESULT 13.39% $1.30/$t,000 $976.43/km 100.00% $3.12/trip 14.68 trips/person $69.73/tonne 8.77% 1,948 tonnes 99.83% These measures should not be compared against those of other municipalities without consideration of size and urban/rural composition of the municipality and the municipality's service levels and standards, all of which may affect the results and their interpretation and understanding. ._C_0nta_c_[..[~i_r_e_gto~ I Eve_D_tS_ I _.Forms_ I Maps I _N_e_w_s_ I ~'!_a_n_sit I Links ~y_ri~q~ © 2001, Corporation of The City of Pickering http ://www.cityofpickering.com/standard/cityhall/finance/performance.html 9/9/2002 A"rTACHHENT#.-~ TO I:LEPOR,T#_C'~/'"/- I20 ATTACHHENT# ~ TO REFOR, Cs /'? · a ~ Performance Measures The Performance Measures required to be reported publicly under the Provincially mandated Performance Measurement Program will be available on the City of Pickering's website www.cityofpickerinq.com as of September 30, 2002. Copies are also available at City Hall, Cashiers Counter, 2nd Floor. RECOMMENDATION OF THE FINANCE & OPERATIONS COMMITTEE DATE MOVED BY 1. That Clerk's Report CL 31-02 regarding the service contract for "PayTickets' be received; and That Council endome the concept of e-government services for paying parking tickets on-line; and That the City Clerk be authorized to enter into a service contract with the Royal Bank of Canada and Teranet for the e-government services for paying parking tickets on-line. PICKERING REPORT TO THE Finance & Operations Committee Report Number: 31-02 Date: September 11, 2002 From: Bruce Taylor City Clerk Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Service Contract for E-government Service - "PayTickets" Paying Parking Tickets On-line File: A-3230 Recommendation: 1. That Clerk's Report CL31-02 regarding the service contract for "PayTickets" be received. 2. That Council endorse the concept of e-government service for paying parking tickets on-line. That the City Clerk be authorized to enter into a serviCe contract with the Royal Bank of Canada and Teranet for the e-government service for paying parking tickets on-line. Executive Summary: In June 2001, the Royal Bank of Canada (RBC) and Teranet showcased their new e-service solution "PayTickets" at the 2001 AMCTO Annual Conference. The service provides municipalities with the ability to offer our clients the option to pay their parking tickets on line. The Town of Oakville launched the PayTickets pilot project in February 2002 and since that time has gained a 10% - 16% usage rate of this service. In November 2001, the City of Sudbury also launched a similar service, which was developed, and is maintained, in-house. According to reports from both municipalities, these services have proven very successful. Staff from our IT, Finance and Clerk's areas have worked with representatives from PayTickets over the past several months to investigate the merit in offering this service to the City of Pickering's clients. As well, staff have discussed the service with contacts from both the Town of Oakville and the City of Sudbury. Our research indicates that the City of Pickering is well positioned to offer our clients a new and innovative payment option that is convenient, quick, and secure at a minimal cost. It is worth noting that 1'2..4 Report CL 31-02 Subject: Service Contract for"PayTickets" Date: September 11,2002 Page 2 there are no other municipalities within Durham Region that are currently offering this level of service. The direct cost for providing this service is estimated at $5,419 in year one and $2,965.80 for each of the remaining four years of the 5-year contract. This issue was reviewed and approved by the Information Technology Sterring Committee on September 11,2002. Over the past two years, the City of Pickering's website has evolved into a popular and necessary means of communication. In an effort to raise the bar and introduce e- government solutions via our website, staff recommend that the City enter into a 5-year service contract with Royal Bank of Canada (RBC) and Teranet to provide the opportunity for our clients to pay their parking tickets on-line, using PayTickets. Financial Implications: This proposed e-government solution for paying parking tickets on-line is an improvement in our level of customer service. The anticipated costs for year one of the 5-year contract are $5,419. For the following four years, the annual costs are projected at $2,965.80. Attachment 1 details the 5-year projected cost forecast. These costs are directly related to the service contract offered by RBC and Teranet. There are no additional costs anticipated. Note, the Service Provider (Royal Bank / Teranet) is offering a discount on the Visa/MasterCard merchant rate. Currently the City pays 1.75% for Visa and 2.22 for MasterCard. The rate offered is 1.73%. As it is very difficult to predict payment patterns, the estimated merchant transaction fees identified in the Cost Forecast may not be a new cost. Specific financing for this project has not been included in the 2002 Budget, however, year one costs will be charged to the General Government - Bank Charges Account (2819), and year 2 and beyond will be budgeted in this same account. Background: The Royal Bank of Canada (RBC) and Teranet have joined forces to offer the e-government service of PayTickets. The PayTickets service is a web based portal service that facilitates the online payment of parking tickets and moving violations. The service they offer includes: · A Canada wide branded service to satisfy the demand for electronic service delivery · An ASP (application service provider) service for online collection of parking ticket revenues Report CL 31-02 Subject: Service Contract for"PayTickets" Date: September 11, 2002 Page 3 125 · Daily remittance of revenues to the City of Pickering · Integration with Back Office System to facilitate the exchange of ticket and payment information · Joint marketing program / advertising program · Maximum adoption - multiple consumer access points o City of Pickering website- City branding retained o Canada wide branded retail "PayTicket" portal o Links from other sites: RBC, AOL Canada, and others 1.0 How the System Works The City of Pickering's website (as well as on several other sites) would provide a link which would launch the PayTicket service. The PayTicket service provides a simple payment screen for the clients to complete. Clients receive an on-line confirmation receipt. The client pays a $1.50 transaction fee, and payment may be made by VISA or MasterCard. The money is deposited into the City's account daily. At month-end, the City receives a detailed report of the daily funds transfers, which identifies deposit amounts, dates and service charges. The Clerk's office receives a daily file from the service provider identifying the transactions. These payments are then manually entered into our parking infraction tracking system (McDTag). Once a week, the City will notify the service provider of any rejected payments - including a roason for rejection. Examples of rejected payments could be: double payment, payment in the wrong amount, or payment made after plate denial. The service provider in turn will notify the client of the payment rejection and advise them to contact the City directly. 2.0 Statistics 2.1 City of Sudbury The City of Sudbury designed a similar web application using an outside consultant. This system proved ineffective and resulted in the development of an in-house system (programmed and maintained by IT staff) using Cold Fusion programming. It is Sudbury's opinion that this system has proven very successful. In the first six months, approximately 429 transactions had been conducted via the on-line payment option. Based on a yearly estimate of 18,000 parking tickets of which approximately 5% are cancelled, approximately 5% of their payments are made through this option. Based on these very rough estimates approximately 3 payments a day are made on-line. Staff report that the direct advantage of this payment option is the reduction in "headaches" Report CL 31-02 Subject: Service Contract for"PayTickets" Date: September 11,2002 Page 4 with dealing with their irate clients. Their clients have commented positively on the convenience and ease with which they are able to pay their fines. 2.2 Town of Oakville In 2001 the Town of Oakville entered into an agreement with Teranet and the Royal Bank to participate in a pilot implementation of PayTickets. The Town issues about 33,000 tickets a year and accepts approximately 29,000 payments per year. Within the first three months, their usage rate was up to approximately 10% -- they average approximately 20 payments per day. They anticipate their usage to increase to approximately 30%, with their highest usage rate to date being 16%. The Town of Oakville attributes the success of the pilot both to the simple, easy payment process (both for the client and staff) and the inclusive advertising campaign. Oakville promoted the pilot through ads in their local papers, they issued a press release, and conducted a media event including their Mayor and members of Council. Additionally, they placed the PayTickets button on their website homepage. 2.3 Durham Region There are currently no other municipalities within the Region of Durham who are offering this service to their clients. 2.4 City of Pickering The City of Pickering's 2001 parking ticket statistics are as follows: Tickets issued using hand held units Manual tickets issued Less: Total warnings Total tickets issued Total payments (estimate) Total Revenues (estimate) 9392 3048 588 11,852 7,800 $3OO,OOO Based on .usage statistics from City of Sudbury and Town of Oakville and based on estimates quoted by the service provider the City of Pickering could expect a 10% usage of the payment option within the first year. This equates to approximately 780 transactions per year or 3 per day. 3.0 Project Justification 3.1 Improve Customer Service Pickering's current payment options for clients include: mail-in cheques or money order, 24-hour cheque or money order drop-off at the Civic Complex, and in-office payments between 8:30 a.m. and 4:30 p.m. by way of cash, money order, cheque, VISA, MasterCard, and Interac. Report CL 31-02 Subject: Service Contract for"PayTickets" Date: September 11, 2002 Page 5 lP7 The VISA / MasterCard on-line payment opportunity provides a convenient, 24/7, remote method of payment. Statistics indicate that 65% of Ontarians regularly access the Internet. The association with the Royal Bank provides a comfort level of conducting a transaction with a secure, trustworthy party. Our clients view the payment of parking tickets as a "hassle", and often staff are faced with disgruntled and irate customers, both at the counter and on the phone. To offer a more convenient payment option for our clients, should not affect our volume of "paid tickets", but may actually take the "sting" out of their unfortunate situation. 3.2 Progressive Corporate Image The City of Pickering currently does not offer any true e-services through our website. The introduction of e-service reinforces that we are a dynamic and progressive corporation that is responsive to our clients' needs. 3.3 Streamlined payment processing The processing time, per transaction, would be reduced for on-line payments as data input is the only component to the transaction. Over-the-counter payments, however, involve verbal interaction and the completion of a payment receipt in addition to data input. Based on our usage estimates, this time savings really only translates to approximately 15 minutes per day. However, the true benefit to staff would be more flexibility in determining when the payments are entered. As well, the increased opportunity for our disgruntled clients to pay from a remote location can only reduce the negative client interaction imposed on staff. 4.0 Implementation The Service Provider has indicated that the implementation process involves very little from the City's perspective. A project meeting with staff and the Service Provider would be required to confirm implementation dates and data exchange processes. The Service Provider will provide the City with a web address and we would in turn provide this information to our Webmaster to include on our Website. Once our Website is updated, we could go live with the service. Staff contacted the Town of Oakville to seek feedback on the implementation process and they confirmed that it is a very simple process that required very limited staff resources to get up and running. The Town of Oakville installed the link on a Tuesday for testing and went live on the Wednesday. Staff in Clerk's, Finance and IT has confirmed that a target date for implementation of October 14th is desirable. 198 Report CL 31-02 Subject: Service Contract for"PayTickets" Date: September 11, 2002 Page 6 5.0 Marketing Both the Town of Oakville and the City of Sudbury reported that they had conducted a marketing campaign. The Town of Oakville commented that they believed that the success of the service is directly linked to their comprehensive marketing approach. Over a two-week period, they issued a press release, placed ads in their local newspapers, and held a media event, which included their Mayor and members of Council. Staff will commit to ensuring that suitable marketing ads will be placed in a variety of publications. Attachments: 1. 5-Year Projected Cost Forecast Prepared By: ,n ,/ __ / Supervisor, Legislative Services Ap p rov~.e¢~;E n d ors, C'd By: City Clerk Gillis A. Paterson Director, Corporate Services & Treasurer Attachments Copy: Chief Administrative Officer Recommended for the consideration of Pickering C~ity Council ,~/' ,, ~T~o~Cn~ J. QCnn, Ctl~ef AO~ Attachment 1 PAY TICKETS COST FORECAST OPTION 2 22-Apr-02 Term: 5 years Total annual volume: $300,000.00 estimate Number of tickets per annum: 7,800.00 estimate Estimated rate of collection: 10% (of total annual volume) One time set-up fee: $2,500.00 Transaction fee: $2.00 per ticket Annual Minimum transaction fee: $2,400.00 Annual Maximum transaction fee: $6,000.00 Visa/Mastercard discount rate: 1.73% Transaction event fee: $0.06 per ticket Contract: YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL COST Set-up fee $2,500.00 $0.00 $0.00 $0.00 $0.00 $2,500.00 Transaction fee $2,400.00 $2,400.00 $2,400.00 $2,400.00 $2,400.00 $12,000.00 * Merchant discount fee $519.00 $519.00 $519.00 $519.00 $519.00 $2,595.00 Transaction event fee $0.00 $46.80 $46.80 $46.80 $46.80 $187.20 Total Cost $5,419.00 $2,965.80 $2,965.80 $2,965.80 $2,965.80 $17,282.20 Percentage to $ collected 18.06% 9.89% 9.89% 9.89% 9.89% 11.52% 22-Apr-02 Term: 5 years Total annual volume: $300,000.00 estimate Number of tickets per annum: 7,800.00 estimate Estimated rate of collection: various increments of 5% each year One time set-up fee: $2,500.00 Transaction fee: $2.00 per ticket Annual Minimum transaction fee: $2,400.00 Annual Maximum transaction fee: $6,000.00 Visa/Mastercard discount rate: 1.73% Transaction event fee: $0.06 per ticket Estimated rate of collection: 10% 15% 20% 25% 30% Contract: YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL COST Set-up fee $2,500.00 $0.00 $0.00 $0.00 $0.00 $2,500.00 Transaction fee $2,400.00 $2,400.00 $3,120.00 $3,900.00 $4,680.00 $16,500.00 * Merchant discount fee $519.00 $778.50 $1,038.00 $1,297.50 $1,557.00 $5,190.00 Transaction event fee $0.00 $70.20 $93.60 $117.00 $140.40 $421.20 Total Cost $5,419.001 $3,248.701 $4,251.601 $5,314.50 $6,377.40 $24,611.20 Percentage to $ collected 18.06%I 7.22%I 7.09%I 7.09% 7.09% 9.31% Cost to replace current tickets: 1. $0.32 each (March, 2001 price - from Secure Business Forms) - We have approximately 7,850 tickets on hand, value $2,512.00. 2. $0.35 each (2000 price - from Groupe Techna) - We have approximately 11,250 tickets on hand, value $3,937.50. Cost to purchase "information stickies": We must pay merchant fees on all credit card payments whether through Pay Tickets or over the counter. This represents a forecast of costs for "Pay Tickets" based on assumptions stated above, and it does not represent a comprehensive cost/benefit analysis. REPORT TO THE FINANCE & OPERATIONS COMMITTEE Report Number: CS 18-02 Date: September 18, 2002 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Final Approval for Financing of Council Approved Capital Projects - Internal Loans and External Borrowing Through the Issuance of Debt Recommendation: 1. That Report CS 18-02 from the Director, Corporate Services & Treasurer be approved and that: Council approve the internal borrowing of $7,677,000 as at January 1, 2001 and $1,224,000 for projects approved in 2001 and 2002 from the Reserve Funds based on the purposes, terms & conditions as specified in Attachments #1 and #2 and furthermore, that the Director, Corporate Services & Treasurer be authorized and directed to take whatever actions necessary, including the recommendations below, to give effect thereto: 3. The Director, Corporate Services & Treasurer be authorized to: a) undertake long term financing through the issuance of debt up to a total amount of $4,279,000 for the projects listed on Attachment #4 in the indicated amounts up to a maximum term of 20 years, through the Region of Durham or the Ontario Municipal Economic Infrastructure Financing Authority (OMEIFA) for the following purposes, as indicated in Attachment #4: Roads Fire Hall and Communications Parks Arenas and Recreation Total $303,000 1,400,000 60,000 2,516,000 $4,279,OOO and the funding for remaining balances in these accounts be provided from the annual Current Budget; b) undertake the financing of any projects or portions thereof that cannot be accommodated through the foregoing through a financial institution offering long term financing under similar terms and conditions; Report CS 18-02 Date: September 18, 2002 Subject: Final Approval for Financing of Council Approved Capital Projects -Internal Loans & External Borrowing Through the Issuance of Debt Page 2 c) finance any capital expenditures currently financed through internal loans, should the need for funds arise, through the Region of Durham or through a financial institution; d) make any changes, adjustments, revisions to amounts, terms and conditions or any other actions necessary in order to effect the above directions of Council; The costs of undertaking the financing, currently estimated at up to approximately $54,000, be charged to the 2002 Current Budget, General Government Loan Repayment; The Director, Corporate Services & Treasurer be directed and authorized to finance any capital projects, the financing for which is not specifically approved by Council, through the issuance of debt or long term financing arrangements, through the Region of Durham, a financial institution, internal loans or whatever means necessary at the discretion of the Treasurer; 6. The Director, Corporate Services & Treasurer be authorized to engage the services of the legal firm of Macmillian Binch, or any other firm, legal or otherwise, necessary to assist in the preparation of documentation, completion of an undertaking and any other aspects in regards to the financing of capital projects; The Director, Corporate Services & Treasurer be authorized to apply any excess proceeds raised on external and internal loans to other capital projects for which long-term financing is required, or to reduce the promissory notes for internal loans as is permitted under the Municipal Act. The Director, Corporate Services & Treasurer be directed to prepare the requisite by-laws for presentation to and adoption by Council at its meeting of October 7, 2002; and, 9. The appropriate officials of the City of Pickering be given authority to give effect thereto. Executive Summary: While long term financing (internal and external) was always generally approved by Council during the annual capital budgeting process and/or through specific reports, there has never been a specific formal approval by the Council for capital projects requiring such financing with the terms and conditions being specified in detail. This Report to Council serves as that final formal approval and Corporate Services will complete all the necessary documentation. In 2001, internal loans for capital projects for the period 1998 to December 31, 2000 were officially recorded in the books of the City of Pickering. This requires final approval from the Council for internal borrowing from Reserve Funds. The debt financed projects from Report CS 18-02 Date: September 18, 2002 Subject: Final Approval for Financing of Council Approved Capital Projects- Internal Loans & External Borrowing Through the Issuance of Debt Page 3 the 2001 and 2002 Capital Budgets will be funded by a combination of issuance of internal loans and external loans through the Region of Durham or a financial institution as per Attachment #2 and #4. Council has to formally approve the request to undertake the long term financing most likely through the issuance of debentures through the Region of Durham at the terms and conditions as arranged in the capital markets. The Director, Corporate Services & Treasurer has certified that this loan and the repayment thereof falls within the City's Debt and Financial Obligations approved Annual Repayment Limit for debt and other financial obligations for 2002 as established by the Province for municipalities in Ontario. Financial Implications: Internal Loans Based on our Auditor's recommendation, internal loans amounting to $7,677,000 were formally recorded in the books of the City of Pickering as at January 1, 2001. These internal loans were funded by the Development Charges and Parkland Reserve Funds: Development Charges Parkland Reserve Fund $6,741,000 $ 936,OOO The combined principal and interest payment booked for 2001 was $926,172 and $126,018 respectively for each of these sources of funds. Attachment 1 provides a detailed breakdown of principal and interest payment per project recorded in 2001. The interest rates were determined by taking the average rate of municipal, provincial and federal bonds for the similar terms. The rates were provided by our investment company, Nesbitt Burns (Attachment #3). Therefore, the interest rates set forth for the internal loans are as follows: Term Rate 5-Year 5.3% 10-Year 5.8% In addition, there is an additional $1,224,000 for internal loans for projects approved in the 2001 and 2002 Capital Budget but cannot be financed from external debt. These funds will be borrowed from the Development Charges Reserve Fund. Report CS 18-02 Date: September 18, 2002 Subject: Final Approval for Financing of Council Approved Capital Projects- Internal Loans & External Borrowing Through the Issuance of Debt Page 4 External Loans The cumulative debt financing approved within the Capital Budgets by Council from 1998 to 2002 that is required at the present time is $13,180,000. With internal borrowings of $7,677,000 as at January 1, 2001 plus $1,224,000 for 2001 and 2002 capital projects to date, it is felt that the reserve funds are financing the maximum amount possible at this time with the exception of additional financing that may arise during the remainder of 2002. The balance of the Obligatory Reserve Funds as at December 31, 2001 was $13,015,766. The remaining $4,279,000 of capital expenditures will have to be financed externally and $13,960 be provided from 2002 Current Budget. Attachment #4 provides a breakdown of Council approved projects that require financing externally through the Region. The external borrowing rate will be determined by the capital markets at the time of the issuance of the debt. Financial Burden The annual loan and debt repayment charges are funded through the general property tax levy in the annual Current Budgets. The projected total of debt outstanding for December 31, 2002 is $11,951,074 net of principal repayments to date. Please refer to Attachment #5. There is an additional $800,000 of 2001 and 2002 capital projects earmarked for long term financing which has been deferred pending commencement of capital construction, for which specific approval by Council for expenditure and the financing will be required. In arriving at our total long-term financial obligations, we must also consider other commitments. The 2001 Capital Budget provided for the purchase of three vehicles. As the financing rate through General Motors Acceptance Corporation was only 0.9% at the time of acquisition and we were earning approximately 3% on our investments, it was decided to finance the purchase over four years ending 2005. In addition it was originally anticipated that the replacement of the City's telephone system would be financed by a lease over seven years. However when this project was completed in the spring of 2001, several municipalities and school boards were experiencing problems in leasing arrangements. That together with relatively high lease rates in the range of 7 to 9 percent prompted staff to withdraw from this course of action. Instead it was decided to fund the acquisition from savings in the Current Budget telephone accounts over six years. Report CS 18-02 Date: September 18, 2002 Subject: Final Approval for Financing of Council Approved Capital Projects- Internal Loans & External Borrowing Through the Issuance of Debt Page 5 Background: Continuous growth has created a need for capital infrastructure to maintain the level of services provided to residents and businesses. Funding sources for capital projects are identified and approved by Council prior to the commencement of the projects. During the period from 1998 to 2002, many capital projects were identified to be financed by long term borrowings. However, due to available resources in the reserve funds, monies were borrowed from the reserve funds to finance those capital projects identified for long term financing. Such internal borrowings require appropriate approvals and documentation in accordance with both the Municipal Act S142 and the Development Charges Act RSO 1990, Regulation 12(3)(4)(5). Corporate Services has completed the necessary documentation including Promissory Notes indicating the amount, term, interest rate and other relevant information relating to the internal loans and their repayment. Normally, all external debt requested by an Area Municipality is issued through the Region of Durham. However, given recent announcements by the Province there may be other, perhaps more cost effective, means of financing available. While I have discussed this with provincial staff, details are not known at this time, and may not for some time. Furthermore, alternate financing may be desirable or necessary for some portions of the City's requirements. The Recommendations allow for the best course of action to take place. The recommendations also provide a limited degree of flexibility in the event that the documentation for projects or portions thereof is insufficient to meet the legal requirements for a debenture issue in that the project can then be financed through other means. They also provide for some flexibility with the treatment of excess proceeds that may be raised as a result of the market conditions (i.e. issued as a premium) or excess funds resulting once project costs are complete and final. The costs of financing of $18,163 were included in the 2002 Current Budget for the 2001 capital projects. The current estimated balance of the cost for 2002 capital projects of up to $36,000 would be met by a projected surplus in the General Government Loan Repayment account. This cost represents commissions, legal fees, registration for debentures with the Canadian Depository for Securities (C.D.S.) and any discount upon sale. Under Resolution 144/99 the Mayor and Treasurer has the authority to sign the Promissory Notes. Report CS 18-02 Date: September 18, 2002 Subject: Final Approval for Financing of Council Approved Capital Projects -Internal Loans & External Borrowing Through the Issuance of Debt Page 6 Attachments: 1. Internal Loans Funded by Reserve Funds as at January 1,2001 2. Internal Loans Funded by Reserve Funds for 2001 & 2002 Capital Projects 3. Interest Rates of Similar Municipal, Provincial and Federal Bonds 4. External Debt, Through Region of Durham or a Financial Institution 5. Total Projected Debt Outstanding at December 31,2002 Prepared / Approved / Endorsed By: GAP:vw Attachments Gillis A. Paterson Director, Corporate Services & Treasurer Copy: Chief Administrative Officer Recommended for the consideration of Pickering Cit~y Co~,, ~. TKo~as J. Qui~, ChieYAdminis ti~ ~ffic~ ATTACHMENT# Annual Development Charges -4227 Old By-Law Purpose of Loan: Rosebank Road Eastshore Community Centre Fire Tanker Dispatch Centre 1999 Roads Projects 1999 Streetlights 2000 Roads Projects Sub-total 4227 Terms 10-Year 5.8% 10-Year 5.8% 10-Year 5.8% 10-Year 5.8% 10-Year 5.8% 10-Year 5.8% 10-Year 5.8% Development Charges -4229 New By-Law Purpose of Loan: Specialized Transit Aerial Truck Waterfront Trail Western Branch Terms 5-Year 5.3% 10-Year 5.8% 10-Year 5.8% 10-Year 5.8% Sub-total 4229 Total D.C Reserve Funds Parkland -4230 Purpose of Loan: Terms 2000 Ext. Subdivision Projects 10-Year 5.8% 1999 Roads Projects 10-Year 5.8% Sub-total 4230 Grand Total Reserve Funds Original Principal Loan Repayment Interest $ 900,000 $ 68,975 $ 52,589 781,000 59,855 45,636 159,000 28,609 8,479 175,000 13,412 10,150 935,000 71,717 54,214 571,000 43,761 33,118 833,000 63,841 49,822 $ 4,354,000 $ 350,170 $ 254,008 $ 85,000 $ 6,514 $ 4,930 400,000 30,656 23,200 488,000 * 37,400 28,304 1,414,000 108,367 82,623 $ 2,387,000 $ 182,937 $ 139,057 $ 6,741,000 $ 533,107 $ 393,065 $ 833,000 $ 63,841 $ 48,314 103,000 7,889 5,974 $ 936,000 $ 71,730 $ 54,288 $ 7,677,000 $ 604,837 $ 447,353 Total $ 121,564 105,491 37,088 23,562 125,931 76,879 113,663 $ 604,178 $ 11,444 53,856 65,704 190,990 $ 321,994 $ 926,172 $ 112,155 13,863 $ 126,018 $ 1,052,190 Principal Outstanding by Function Roads & Streetlights 'Com. Facilities, Libraries & Parks Fire Services Transit Services Grand Total $ 4,175,000 $ (320,024) $3,854,976 2,683,000 (205,622) 2,477,378 734,000 (72,677) 661,323 85,000 (6,514) 78,486 $ 7,677,000 $ (604,837) $7,072,163 * In 2002, amount reduced by $257,000 based on Repod to Council OES 021-01. Surplus will be used to reduce principal on promissory notes. Reserve Fund Internal Loans Internal Loan .'::,TTACHMENT#..~ _TO REPORT#.,,C-~ ~'~- 0 ~ 2002 2002 2002 2002 2002 2001 2001 2001 2001 2002 2002 2001 2001 2001 Fire Hall & Communication 02-2240-005-01 5-Year 5.3% Parks 02-2718-001-07 02-2718-001-10 02-2718-001-11 02-2718-001-19 10-Year 5.8% 10-Year 5.8% 10-Year 5.8% 10-Year 5.8% Roads Old Brock Road (south of Hoxton) 10-Year 5.8% Pickering/Uxbridge Townline 10-Year 5.8% Seventh Concession Road 10-Year 5.8% Vicki Drive 10-Year 5.8% Sidewalks 02-2323-001-02 02-2323-001-04 1 O-Year 5.8% 10-Year 5.8% Storm Water Mana,qement Amberlea Creek/Frenchmans Bay 10-Year 5.8% East Duffins Creek-Conc. 5 10-Year 5.8% Pine Creek-Dixie Road 10-Year 5.8% Streetliflht 2002 02-2325-005-02 lO-Year 5.8% 2002 02-2325-005-04 lO-Year 5.8% Arena & Recreation 2002 02-2735-005-03 1 O-Year 5.8% 2002 02-2744-006-01 1 O-Year 5.8% Total Internal Loan - 2002 Replacement Phone System Waterfront Trail -Western Gateway Design Waterfront Trail Signage (eastern section ) Waterfront Improvments-trail amenities Morality Lighting Remove & replace concrete box culvert Installation of concrete walls-damaged structure New granular base & hard top surfacing Final layer of asphalt from 2000 Rosebank Rd.-Rodd Ave. to Rougemount Dr. Ferncliffe Circle-Concrete Sidewalk Walkway Erosion Control/Rehabilitation Erosion Control/Rehabilitation Erosion Control/Rehabilitation Amberlea Neighbourhood-Belinda Crt Various Streetlight upgrades or replacement Supply & Install new rubber flooring New Entrance and Parking Area $ 43,000 $ 60,000 30,000 25,000 40,000 $ 80,000 315,000 250,000 48,000 $ 38,000 40,000 $ 100,000 50,000 10,000 $ 30,000 10,000 $ 25,000 30,000 $ 1,224,000 ~lote: Principal and interest payments to commence in 2003 External Financing by project RTC-Internal 2002 9/19/2002 Terms 5-Year Gov't of Canada BC Metro Toronto 1 O-Year Canada Ontario Halton Maturity Date 01-Sep-06 01-Dec-06 15-Aug-07 15-Mar-14 02-Dec-11 28-Jun-12 Yield 5.084% 5.360% 5.570% 5.586% 5.871% 6.023% Calculated Avera.qe 5.3% 5.8% Nesbitt Burns ,",TTACH MENT #~TO REPORT 2002 2002 20O2 2002 2002 2002 2002 2002 Fire Hall & Communication 02-2240-006-01 Fire Dispatch Communication System Parks. 02-2718-001-09 Western Waterfront & Duffin Trail Dev. Roads 02-2320-008-04 02-2320-009-04 8th Conc. Road-East of Four Season Whitevale Road Culvert Replacement Arena & Recreation 02-2735-005-01 Repair & Asphalt Parking & Curbs 02-2731-005-04 Repair & Asphalt Parking & Expansion 02-2733-005-01 Rec Complex-Construct Family Changerooms & Fitness Renovations 02-2715-006-01 Don Beer Arena-Construction of Third Ice Pad (Note 1) Total External Debt O-Year 10-Year $ 1,400,000 * $ 60,000 10-Year $ 204,000 * 10-Year 99,000 * 1 O-Year 1 O-Year 1 O-Year 20-Year $ 100,000 250,000 * 489,000 * 1,677,000 * $ 4,279,000 * Figures revised based on Reports to Council Note 1: The amount excludes $1,000,000 of debt financing for the Partner's share of which terms and conditions are unknown at this time External Financing by project RTC-External Debt 2002 9/19/2002 ATTACHMENT# .5'" TO P, EPOP, T./.:/:~ (~,$ I ~"- O~ Internal Loans As at January 1,2001 2001 Capital Projects 2002 Capital Projects Total Internal Loans External Loans Total Projected Debt $ 7,677,000 $ (604,837) $ (624,089) 853,000 371,000 $ 6,448,074 853,000 371,000 $ 8,901,000 $ 4,279,00O $ 13,180,000 $ (604,837) $ (624,089) $ 7,672,074 $ 4,279,OOO $ 11,951,074 Taylor, Bruce From: Sent: To: Cc: Subject: Brenner, Maurice, Councillor September 3, 2002 9:40 AM Carroll, Neil Taylor, Bruce Cellular Towers Neil: As the technology changes so does the pressures for more towers, a letter was recently written by Marjorie Villenuve 1714 Finch Ave raising concerns about a new tower that was just effected. Perhaps it is time to look at a policy and communications program on matters of this nature. If I am correct the City must approve each request. I am requesting that the letter and this matter be placed on a Planning Committee Agenda for discussion Maurice S. Brenner Regional Councillor Ward One PICKERING Pickering Civic Comple; One The Esplanade Picketing, 0ntaric -Canada L1V 6K7 Direct Access (9.05) 420-466( PLANNING & DEVELOPMENT DEPARTMENT cityofpickering, co~ Department (905) 420-4617 Facsimile (905) 42,0-7648 plan&devl~'city, pickering, on.ca Marjorie Villeneuve 1714 Finch Avenue Pickering, ON L1V IK4 September 6, 2002 Subject: Telus Mobility Communication Tower Durham Regional POlice Station, 1710 Kingston Road (Northeast corner of Kingston Road and Brock Road) Part of Lot 18, Concession 1 City of Pickering Thank you for your letter of August 23, 2002, respecting the installation of a communication tower at the Durham Regional Police Station (19 Division). I just received the letter and understand your concernl It is important that I explain the limited role the City plays in cell tower installations. Industry Canada (CRTC) regulates the installation of cellular communication towers at a'federal level. Cell towers cannot be prohibited at the municipal .level. Communication companies are required to consult with the.municipality in which they intend to erect a cell tower, but the municipality does not hold approval authority. Our involvement is limited to providing guidance respecting the suitability of .proposed locations, within the engineering parameters of the communication service requirements. We are able to exert some influence on the appearance of a tower and, to a limited degree, the location of a tower. The Federal regulating authority has no property owner notification'requirement. The communication tower at 19 Division is one of many cell towers introduced to serve Durham Police. Durham Regional Police entered into an agreement with Telus Mobility for voice and data airtime services. This means that the Durham Regional'Police now rely on cellular communications for all of the emergency services they provide to the community. The City received notice in June of this year that several additional towers were required .to complete the communication network necessary to provide full coverage. The location at 19 Division was one of these installations. Telus Mobility met with City representatives and developed a tower design, which is a significant aesthetic upgrade from the Standard tower. This was important from the City's perspective, considering the high visibility of this site. The.height of the tower is a functional engineering requirement, necessary to provide required coverage. We recognize that communication towers can be intrusive elements in the community. However, the City does make every attempt to reduce impacts through our consultation with communication companies. Marjorie Villeneuve Telus Mobility Communication Tower_ September 6, 2002 Page 2 Co-location of facilities is strongly encouraged to reduce the number of t°wers, locations are reviewed to attempt to find the least intrusive siting within the engineering parameters, and tower design is reviewed with the goal of improving aesthetics. However as noted above, the engineering requirements of the technology dictate tower height and location. While the information provided in this letter does not change the fact that a communication tower is located on the Durham Regional Police site, I hope that it does provide you with a greater understanding of the-City's authority respecting communication towers and the elements of installation that we attempt to influence. Communication technology continues to advance at amazing speed, and I am hopeful that in the not too distant future, the need for towers currently essential to the provision of communication services will be eliminated and existing towers dismantled. you have any questions on this matter please do not hesitate to contact me or John McMullen, Senior Planner - Site Planning at extension 2039. Yours truly JFM:kb jnlcmui~en~ltc~slte Can applicatio~s~1710 I~gston Road Tower.~loc Copy: Mayor Arthurs Members of Council Chief Administrative Officer City Clerk Manager, Development Review Senior Planner-Site Planning Customer Care Specialist Nell' Carr~P,/C, PP ' Director, Pla~ & Development RECEIVED SEP 3 2002 CITY OF PLANNING AND DEVELOPMENT DEPARTMENT - I inch Avenue '. ~ ~o M. Villeneuve I F ~ --- ~ _._L J_LL~ I · !La /-- ' i I ] % ~ ~o~ / ---- -- ~ ~ ....p--~ ;.,,,.,.otp,,.~ ==____ , ,~_ , , I m=--~ ci ~~ HLkTRI[LLu-~-~-- ~ , co~%dI L~------ o City of Pickering Planning & Development Department PROPERTY DESCRIPTION PT. LOT 18, CON. 1; PT. OF RD. ALLOW. BETWEEN LTS. 18 & 19; PT. 1,40R-12803 OWNER REGION OF DURHAM DATE SEPT 23, 2002 DRAWN BY lB APPLICATION No. S 15/96(R02-04) SCALE 1:7500 CHECKED BY LT FOR DEPARTMENT USE ONLY PN-9 PA-