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HomeMy WebLinkAboutSeptember 24, 2001 (Finance)PICKERING AGENDA FINANCE COMMITTEE Thomas J. Quinn Chief Administrative Officer SEPTEMBER 24, 2001 Finance Committee Meeting Minutes Monday, September 24, 2001 at 10:00 a.m. Chair: Councillor Holland PRESENT: Mayor Wayne Arthurs COUNCILLORS: M. Brenner M. Holland - Chair R. Johnson ALSO pRESENT: T. Quinn - Chief Administrative Officer G. Paterson - Director, Corporate Services & Treasurer B. Taylor - City Clerk S. Karwowski - Manager, Financial Services K. Senior - Manager, Accounting Services D. Kearns - Committee Coordinator APPOINTMENT OF.___CHAIR · Councillor Holland was appointed as Chair of the Finance Committee. Councillor Brenner was appointed as the Vice Chair of the Finance Committee. · The term of office for the Chair and Vice Chair is to expire on November 30, 2002. · The Finance Committee confirmed that it shall meet at 10:00 a.m. See Recommendation #1-4 CONFIDENTIAL ITEMS CORPORATE SERVICES REPORT CS 27-01 VERIDIAN CORPORATION See Recommendation #5 CORPORATE SERVICES REPORT CS 33-01 VERIDIAN CORPORATION See Recommendation #6 CORPORATE SERVICES REPORT CS 24-01 ONTARIO POWER GENERATION ASSESSMENT APPEAL See Recommendation #7 Hi_H_D MATTERS FOR CONSIDERATION CORPORATE SERVICES REPORT CS 25-01 NEW MUNICIPAL ACT _See Recommendation #8 Finance Committee Meeting Minutes Monday, September 24, 2001 at 10:00 a.m. Chair: Councillor Holland CORPORATE SERVICES REPORT CS 28-01 THE CITY OF PICKERING - LIABILITY INSUT-.ANCE See Recommendation #9 (IV) REVIEW OF OPERATIONAL PROCEDURES The Committee considered operational procedures under the following headings and made the following comments: What is the Committee about: · How do Committee members get items on their respective Committee agendas. Operating Procedures: · Some operating procedures should be discussed by all Members of Council at the Management Meeting scheduled for October 29, 2001. · There should be discussion concerning the Audit Committee at the October 29th meeting. · There should also be discussion concerning the budget process at the October 29th meeting. tV} ADJOU~MENT The meeting adjourned at 1:00 p.m. Appendix I Finance Committee Report FC-2001/O1 That the Finance Committee of the City of Picketing having met on first report to Council and recommends: 1. APPOINTMENT OF CHAIR That pursuant to Section 5(d)(iii) of Procedural By-law Holland be appointed as Chair of the Finance Committee. September 24, 2001, presents its 3665/91, as amended, Councillor APPOINTMENT OF VICE CHAIR That Councillor Brenner be appointed as Vice Chair of the Finance Committee. TERM OF CHAIR AND VICE CHAIR That pursuant to Section 5(d)(iii) of Procedural By-law 3665/91, as amended, the appointments of Councillor Holland as Chair and Councillor Brenner as Vice Chair shall expire on November 30, 2002. LOCATION AND MEETING TIME OF FINANCE COMMITTEE That pursuant to Section 5(d)(ii) of Procedural By-law 3665/91, a amended, the Finance Committee shall meet on the fourth Monday of each month at 10:00 a.m. in the Main Committee Room. CORPORATE SERVICES REPORT CS 27-01 VERDIAN CORPORATION That Confidential Report CS 27-01, of the Director, Corporate Services & Treasurer, be adopted as amended. CORPORATE SERVICES REPORT CS 33-01 VERIDIAN CORPORATION That Confidential Report CS 33-01, of the Director, Corporate Services & Treasurer, be adopted. CORPORATE SERVICES REPORT CS 24-01 ONTARIO POWER GENERATION ASSESSMENT APPEAL That Confidential Report CS 24-01, of the Director, Corporate Services & Treasurer, be adopted. CORPORATE SERVICES REPORT CS 25-01 NEW ~CIPAL ACT That Report CS 25-01, of the Director, Corporate Services & Treasurer, concerning the New Municipal Act, be received for information. Appendix I Finance Committee Report FC-2001/01 CORPORATE SERVICES REPORT CS 28-01 THE CITY OF PICKER1NG - LIABILITY INSLqLa2qCE That Report CS 28-01 of the Director, Corporate Services & Treasurer, City of Pickering, be received and that it be hereby resolved that the Council of the City of Picketing accept the agreement of the Liability Insurance Subscription Policy to insure the liability assumed by the Resolution as follows: The Council of the City of Picketing hereby; 1. Assumes the Liability for bodily injury to or death of any person or damage to or destruction of property of others, imposed by law upon: a) Members of Council, Commissioners, Trustees, Board Members, Statutory Officers, Officers, Employees or Workers of the City of Picketing for Liability which arises out of the use or operation by such person of a licensed motor vehicle, or b) The owner of any licensed motor vehicle, for liability which arises out of the use or operation of such licensed motor vehicle bv Members of Council, Commissioners, Trustees, Board Members, Statutory' Officers, Employees or Workers of the City of Picketing. Declares that such assumption of liability be subject to the following limitations, exclusions and conditions: a) b) c) This assumption of liability applies only to the use or operation of a licenced motor vehicle in Canada or the United States of America by Members of Council, Commissioners, Trustees, Board Members, Statutory Officers, Employees or Workers on behalf of the City of Picketing including travel to and from work and attendance at meetings. This assumption of liability applies only ~n excess of existing insurance carded by the owner of the licensed motor vehicle which was being used or operated by Members of Council, Commissioners, Trustees, Board Members, Statutory Officers, Officers, Employees or Workers at the time of the accident and does not apply unless the licensed motor vehicle which was being used or operated by such person at the time of the accident is insured for not less than the minimum Third Party Liability Limit required by The Insurance Act for the Province of Ontario. This assumption of liability is subject to the agreements, conditions, terms and limit of liability insured in the Non-Owned Automobile Policy issued by the Subscription Policy and shall terminate whenever such Non-Owned Automobile Policy is terminated. PiC RING Audit Committee Meeting Minutes Tuesday, September 25, 2001 at 5:00 p.m. Chair: Councillor Brenner Present: Councillor Maurice Brenner Councillor Mark t tolland Councillor [)ax c R~ an Gil Paterson. Director of t~inance & l'reasurer Kristine Senior. Manager. :\ccounting Serxices Debbie Kearns. Committee Coordinator Warren tfurren, t turren, t:lctt. Sinclair. ('bartered Accountants Neil Sinclair. Hurren. Flett. Sinclair. Chartered Accountants Adoption of Minutes of.June 18~ 2000 Moved by Councillor Rvan. that the Minutes of the June 18. 2001 Audit Committee Meeting be approved. CARRIED o 2000 Year End Audit 2000 Financial Information Return Moved by Councillor }tolland, that the 2()()0 ,\udited }:inancial Financial Information Return. be received and referred to Council. CARRIED Statements and the 2000 o Corporate Services Report CS 26-01 Municipal Performance Measurement Program Councillor Brenner advised that Mayor Arthurs questioned thc accuracy of the figures with respect to operating costs for winter control per lane kilometer. Mr. Paterson advised that the figures were accurate and proxided a breakdown of the direct and miscellaneous costs. .,\n explanation of these figures will be included in the report prior to publication. Results will be placed on thc website with one disclosure included at the end of the report rather than in each section. Councillor Holland requested that service levels be compared x~ hen comparing costs. Moved by Councillor }tolland. that the Audit (.'ommittec recommends that Corporate Services Report CS 26-01. Municipal Performance Measurement Program. be l-brwarded to Council; and Further that the results ()nix of the Municipal t'crformance Measurement Program, excluding comments, but including a general disclaimer, be publicized. CARR! ED Corporate Services Report CS 30-1}1 Request for Proposal Procedures Councillor Ryan raised concerns with respect to possible abuse of authority while authorizing payments as outlined on Page 5. Sections 2.02 to 2.07 in the I)ral't Policies and Procedures..\ comparison with other municipalities will be prox idcd b; thc Treasurer. (~itq o~ & PiinG Audit Committee Meeting Minutes Tuesday, September 25, 2001 at 5:00 p.m. Chair: Councillor Brenner Councillor R)an requested that a definition bc included in the report which outlines the appropriate time to use an Rt:P~ 1 cnder or Quotation. Moved by Councillor Rvam that Corporate %erxiccs Report CS 30-01. Request tbr Proposal Procedures and Purchasing Bx-lax~ be tbrwardcd to thc }:inance Committee within associated comments. CARRIEI) Corporate Services Report CS 32-01 Millennium Committee/Account Moved by Councillor R3an. that Corporate Ncr, ices Report CS 32-01. Millennium Committee/Account be tbr,aarded to the Finance Committee. CARRIED Corporate Services Report CS 29-01 Establishment of the Millennium Committee Moved b3, Councillor Rvan. that Corporate Services Report ('S 29-01. Establishment of the Millennium Committee. be receix cd lbr inlbrmation. CARRIE l) o Corporate Services Report CS 31-01 Invoices for Outside Agencx Sen'ices Councillor Ryan raised concerns with respect to the 'Note to File' included in the Corporate Services Report CS 31-0l. Attachment #1. not being dated. Moved by Councillor Ryan. that Corporate Serxices Report ('S 31-01. concerning Outside Agency Services be approxed: and That the City Clerk distribute copies of the procedures to Members off Council. CARRIED o Other Business a) Councillor Brenner adxised that a rexiex~ of the minutes of the June 18th meeting would be undertaken to ensure that all outstanding items hax e bccn addressed. b) Councillor Rxan put lbmard the need Ibr enhanced audit function ~hich v~as generally agreed. c) The next meeting xxill be at the call el'the Chair follox~ing discussions ~ith Mr. Paterson. o Adiournment Meeting adjourned at 6:35 p.m. PROCEDURES RESPECTLNG THE FINANCE COMMITTEE Excerpt from Procedural By-law 3665/91, as amended There shall be four Standing Committees to be organized as follows: (c) Finance Committee (i) The Finance Committee shall be comprised of three Councillors and the Mavor as ex-officio. (ii) The Committee shall meet on the fourth Monday of each month at a time and location to be determined by the members of the Committee. (iii) The Chair of the Committee shall be a member of the Committee other than the Mayor and shall be rotated each year and be appointed at the first meeting of the Committee in each calendar year, except for the first year folloxving a regular municipal election when the Chair shall be appointed at its first meeting following the municipal election. (iv) The Finance Committee has the power to enquire into and report to Council on any matter that is within the jurisdiction of the Department, Corporate Services and any other matter referred to it by Council. Notwithstanding Section 5 of this Bv-law. (a) Council may consider any matter without referring it to a Committee or may refer it to two or more Committee or refer it to the Committee of the Whole and may withdraw a matter from a Committee at an}.' time (b) Council may at any time appoint a special or ad hoc Committee to enquire into and report on any matter. The rules of procedure set out in this By-law shall be observed in meetings of the Standing Committees insofar as they are applicable, provided that. (a) for the Finance and Operations Committees, a motion shall not be required to be seconded: ¢) (d) (e) (0 (g) (h) the number of times a Member may speak on any question shall not be limited for the Finance Committee and Operations Committee; a recorded vote shall not be taken on a question before a Committee; the rules in respect to the introduction of new business in Council and the hearing of delegations shall apply to Committees unless otherwise decided by the Committee; the quorum of a Committee shall consist of a majority of the total Members excluding the Mayor, however, the Mayor can be counted to form a the agendas, minutes and any written notices pertaining to any Committee shall be sent to all Members of Council. a report, setting out the recommendations of the Committee, shall be forwarded to the first regular Council Meeting following the meeting of the Committee. Special Meetings of the Standing Committees, (i) May be called by the Chair of the Committee on condition that the Committee does not meet while Council is meeting. (ii) May be called by the Chair of the Committee when requested to do so by a majority of Members of the Committee. (iii) Written notice of a Special Meeting of a Committee must be given to all Members at least twenty-four hours before the time appointed for such meeting. (iv) The written notice to be given under clause (iii) shall indicate the nature of the business to be considered at the Special Meeting and the date, time and place of the Meeting. (v) No business other than that indicated in the written notice shall be considered at the Special Meeting except with the unanimous consent of all Members of the Committee present and voting at such meeting. lie C O R P ORATION OF TIlE CITY OF PICK ERiN G BY-LAW NO. l?,emg a by-law lo approve an a?'eement of the sl~archolders oF Veridian Corpora~io~ ami the ('Orl~oration ~)1' t1~o ('itv oF Picketing, a~ agreement amending the merger agreement dated 5iovcn~be~' 3, 2000, as a~ncnded, among the shareholders oF Veridia~ ('o~'porati(m ct al. ami an agreement resl)ecti~g the Vcridian Conncclions Inc. ami two el'thc st~cccssor corporations It) the electricily dislribution business of lbo ('orporalion of tho ('i~ of l'ickering. WHI!REAS the ColpOraiion of' thc 'l'own of' Ajax ("A. jax"), lhe ()orporation oF Ihe City of Belteville ("Bellevill¢"), thc (~orporati{n} of lhe Municipality {d' (ilalington ("('larington"), the Corporalion oF the City of' Picketing ("Picketing"), Vcridiall ('orpr~ration, Veridian Connections Inc., Veridian Energy Inc., 1437864 Ol~lmio l~in~iled, }~cllcville t{[ectric Corporation and 1444141 Ontario Limited entered inlo a merger agreelnc~t dated November 3, 2000 as amended by a merger amending agrccmen( dated as of June 2f), 20()1 (collectively the "Merger Agreemelll"); wilh the terms set out in the l'on~l ot-a~l'celnel~i allached l~ct-cto als ,Schedule AND W}tEREAS R)llowing die m~ialganiation of Vet idia~l ('ort~oration and 1437864 Ontario Limited lmrsuanl to tlie ien~ls off the Nlerger A~reenaen~, BellevJlle, Ajax, Picketing and Claringlon (colleclJvely ~he ",&hmicit)alities") slmll be thc owners of all thu~ issued and outstanding shares of' Ihe amalgamated entity conlint~i~g as Vcridian Corporation ("VC Amalco"); AND WHEREAS lhe ['v'ltmicipalitics wish to ?~to~' into 'a shard~oldevs' agreement to provide for the conduct oF certain aflhirs oF VC Amalc~ 'and ils subsidia~ 5' c()rporalions, to provide fi,r certain reslrictions on lhe lranslbr and ()xvncrshil, fyi' sha['cs i~ thc capital o1' VC Amalco mid to govern the mutual rights and obligations of tl~e Nlu~ficipalilies with respect to VC Anmlco and its subsidimy co~poralions and each t~lher in lhe fb~ n~ o1' agreement attached hereto as Schedule B; AND WHEREAS Ibllowing lhe c(mlpletio}l o[' the h'ansactic)ns contcmplaled by the Merger Agreement, the Municipalities, Vericlian ('{~Yporation, Veridia,~ l~nergy Inc. ami Veridian Connections Inc. will ctesiYe lo ame~d the existing promissory notes held by cad~ of' the corporations (m die te~ms scl ()ul ill the lbrm oF agree~nc~l a~lacl~ed hereto as Schedule ('; The Council of'the Corporation of the City of Pickeiing c~acts as tbllows: The Second Merger An~emling ASreea~ent. in st~bsta~tially lhe lbrm attached hereto as Schedule A, Forming parl of this by-law i~; hereby autt~ori×cd amt approved. The Shareholders' A~recl~cn~ anl()i~ tl~e tNlt~nicil~alitics? Vc:Yi,lial~ Corporation, Veridian Schedule C., t'ormil~g part oF lhis by-law is hcrclw anth~ ized and appr(wed. The Mayor and lhe Clerk, acting together, are hereby autl~t_)rizcd and directed, For and on behalf of' the Corporation of the City of Picketing to execute and deliver the Second Merger Amending Agreement, the Shareholders' Agreement and the First Note 14cplaccment Agreelnent (collectively the "Docttmcnts") with such minor alterations, additions, mid amendments lhcFeto as they m~tv approve, the execution of the Documents by such individuals being conclusive evideHce of such approval and to do all such acts and things ami to execute and deliveF all suc'i~ oilier documenls, instruments and writings as may be uecessaFy oF desirable to give et'lDct tr~ the pFovisions of/his by-law ami lhe Documenl s. Mayor CIoFk Read a First ami Second Time tt~is & day ofgeplend~e~, 2001. Read a ThiFd Time amt Passed lifts & day o[ SeptembeL E RIDI. AN (i o R ? 0 I~ A7 I 0 f4 MEMORANDUM Mart:v DeR(md, City Clerk. I)~tti B~rria, CiU Clcrk, Munic~pali Bruce Taylor, Ckv (;lark, City PickerinZ David Clark? Vice Prcskient, Corporate Septembar 20. 2001 Recommendation The bv-h~w and supporting documents provided tw Veridian's legal ccmnscl approves an ~tgreemcnt extensinn to, tim promissoo- ncwes in line with the rccom~nendnrion5 made to Cour~cil by Veridian staff. Veridmu recommends l}mr (amncil approve ~he l>v-lav,' as pr~:pared t? legal ovunsal implementing th ese changes. Belleville Merg_er On Novemlocr.3'~, 200(1_ , thc Town of .-\ia>:. City Pickering entered a merger agreement tilat would amalgnmate the inc~,rpr)rxted elecuric utility owned by flae Citrv c,f Bcllcvillc with Vcrictian. Uncicr tim terms Ajax, City oF l%lleville. MunicipaliU <,f (}]ariugton mid the (Sty oF Picketing would tx:come the shareholders (.,f this newly amal&m~atcd company rc Fcrrcd t(. m thc lw law as VC .&malco (The new company will continue to oparate ;ts V(ricti;m (]cwp.t,r itu,n with sul,sidiaries Veridian Connections and Varidian Enet:~}'). ]'hc Merger required thc' xppr,,va] On September 12. 2001. thc Ontario E. ner? Bc,m-d approved ibc merger of the Belleville Utilities wifl~ Veridian Oarpomtion. 'I'hc OrltarlC, [{ncrgy bv,u:d also approved rate a.mendmau!s for the Bellcville Utilities to, be implementud cffe,mvc ()cv-,i - lx 2001. C]~ sing tim merger tw C)clober is :h,tinls:C:',TE~ "S nccholdcr Ag,:'e e t 13ellevilic.,fir:: lDn*e: September 2{I, 2(}01 Page 2 Memo re: Bellevitle ~X~er and Promissory.~Note ]:~×tension talc schedule. Veridian's legal counsel and the Citx of BeIlevi lu's ]e?d c,:~unsc] }m~ c' dmfrcd the new shareholders agreement in accr~r'dnnce with thu November 3.2~H~ mc'r~er~ 2ore~'mcnt~ .. and based on the pre~ious shareholders agreement approved by Un\, Pickeriua ~md Ctarington. Under the terms of the Noverntmr 2{10(1 merger ;~grecment re~clmd becveen the municipal shareholders, a formula was estatdished for thc new c, qmtF- )xvnc'r4'fip based upon the deemed equiU' contributed by Belleville and fl~c equiU positions of cnch (,F Amx, Cl>~ington nnd Picketing ns of December 31,2000. Thc share equity ownership F(~r Veridian i~ei:,:,re. ~md ;~Fter ~he' t~;cllevillc merger are: ;~i~ii~i:-~i~i~~n:gt°n 15.7 % 13.6% 47.3 % 41.0% 13.3% 100.0,,o 00.0% °' Thc terms of t:!~¢' merger agreement als, ?ccified thc: numl)er <,t-directors appointed },v each shareholder. 'l"tne Board appoiincc:5. I~e~-ore and after t}~c m~racr~, are: Town of Aiax 4 4 ;Municipality of clarington 3 3 CitY, of::Pi~kering 5 5 ~Ci~:Of.Beileville 1 " .... 12 13 There are certain other minor c}mnaes, t~:, thc exls" li~,(,z Vendmn simreholders agreemenl.~ The two items above :,re the only sul>standve, changes to the it~I'ecl-~qcIlt. D:ate: Septembcr 20, 2001 Page 3 Prontissory Note Extension i, 2006. Coui~cils For Ajnx, Cl~lriIagqc>ra vinci tBelic:¥ili~- }x:~vc. approved this extension. Picketing were reviewed by stnff ()f each of thc shareholders ;mci t}~t~re is unm~in~ous support fi'om tlaose staff members for tt2e clxanges. pr~)missoIT ~aotes. submitted, David Clark, Vice ]"resident, Corporate/MTairs, Veridian Corporal_ion 028 RECOMMENDATION OF THE FINANCE COMMITTEE DATE MOVED BY SECONDED BY it is recommended that Report CS 25-01 of'the Director. Corporate Services & Treasurer, concen~ing the New Municipal Act. be received for inlbm'~ation. PICKERING REPORT TO COUNCIL FROM: Gillis A. Paterson Director, Corporate Services & Treasurer DATE: September 19, 2001 REPORT NUMBER: CS 25-01 SUBJECT: The New Municipal Act RECOMMENDATION: It is recommended that Report CS 25-01 of the Director, Corporate Services & Treasurer be received for information. ORIGIN: Director, Corporate Sen, ices & Treasurer AUTHORITY: The Ministry of Municipal Affairs and Housing FINANCIAL IMPLICATIONS: Not applicable. EXECUTIVE SUMMARY: As you are probably aware the Ministry of Municipal Affairs and Housing (M.A.H.), and other Provincial Government Ministries, are in the process of issuing a new, revised, draft Municipal Act this fall. The Director, Corporate Services & Treasurer has been asked by staff of the M.A.H. to participate in that process. The following report is a summary of activities to date in this regard. BACKGROUND: This report is to advise the Committee and Council of the involvement of the City Treasurer in reviewing certain Sections of the Municipal Act in preparation for the imminent release of a new draft. The Treasurer was requested by staff of the Ministry of Municipal Affairs and Housing to participate with a group of lawyers, bankers, investment bankers, staff of the Ontario Finance Authority, Municipal Affairs and others in reviewing certain Sections of the Act in regards to investments, debt, zero coupon bonds, and other financial instruments and techniques. I was the only Treasurer asked to participate. Report to Council CS _~-01 Subject' The New Municipal .Act Date: September 19.2/)/tl Page Specifically. over tile last few montils discussio~ papers v,'crc proposed Ibr exentual submission to Cabinet on tile follox;'ino topics: 1. Eligible lnxestments Innovatix e Financing Tools a) Hedging against rising interest rates b} Revenue Bonds c) Section 210.1 and Capital Leases dt Options tbr addressing cash-flo~ itllYastructure projects timin~ differences on municipal 3. Differentiated Poxvers 'Vile discussions xvere successful and tile changes, if approved, xxill prox idc Ibr more latitude for municipalities in specific instances in undertaking investments and tile issuance of debt. The changes should assist in making these activities more cost effective andor increase investment income. It is currently anticipated tt~ai v, ork on these and other Sections of the New Municipal Act will continue tbr some time. ATTACHMENTS: Not applicable. Prepared :\pproxcd Endorsed Bx': Gillis A. Paterson Director. Cot-potato Services & Treasurer GAP:vw Recommended for the consideration of Picketing City Council ~ ,~/~ ,. RECOMMENDATION OF THE FINANCE COMMITTEE DATE MOVED BY SECONDED BY It is recommended that Report CS 28-01 of the Director, Corporate Services & Treasurer, City of Picketing, be received and that it be hereby resolved that the Council of the City of Pickering accept the agreement of the Liability Insurance Subscription Policy to insure the liability assumed by the Resolution as follows: The Council of the City of Picketing hereby; I. Assumes the Liability for bodily injury to or death of any person or damage to or destruction of property of others, imposed by law upon: a) Members of Council, Commissioners, Trustees, Board Members, Statutory Officers, Officers, Employees or Workers of the City of Pickering for Liability which arises out of the use or operation by such person of a licensed motor vehicle, or b) The owner of any licensed motor vehicle, for liability which arises out of the use or operation of such licensed motor vehicle by Members of Council, Commissioners, Trustees, Board Members, Statutory Officers, Employees or Workers of the City of Pickering. 2. Declares that such assumption of liability be subject to the following limitations, exclusions and conditions: a) This assumption of liability applies only to the use or operation of a licenced motor vehicle in Canada or the United States of America by Members of Council, Commissioners, Trustees, Board Members, Statutory Officers, Employees or Workers on behalf of the City of Picketing including travel to and from work and attendance at meetings. b) This assumption of liability applies only in excess of existing insurance carded by the owner of the licensed motor vehicle which was being used or operated by Members of Council, Commissioners, Trustees, Board Members, Statutory Officers, Officers, Employees or Workers at the time of the accident and does not apply unless the licensed motor vehicle which was being used or operated by such person at the time of the accident is insured for not less than the minimum Third Party Liability Limit required by The Insurance Act for the Province of Ontario. c) This assumption of liability is subject to the agreements, conditions, terms and limit of liability insured in the Non-Owned Automobile Policy issued by the Subscription Policy and shall terminate whenever such Non-Owned Automobile Policy is terminated. o32 C_itq o~ ~ PICKERING REPORT TO COUNCIL FROM' ©illis A. Paterson Director. Corporate Services & Treasurer D:\TE: September2(L20()l REPORTN['MBER: C$25-01 SLBJECT: The City of Pick?ring Liabilit;' Insurance RECOMMENDATION: -, It is recommended that Report CS 25-()1 el'the Director. Corporate Serx'~ccs & Treasurc~-. ('itx of Picketing. be received and that be it }ncr&ox resolved that the Council et' thc City of Picketing accept the agreement of the hiabilitx Insurance Subscription Policx to insure thc liability assumed bv the Resolution as tblloxx s: The Council of thc City of' Picketing hcrebx Assunnes the Liability for bodily iniur-x to or death of anx person or dama*,c to or destruction of.properly of others, itnposcd by laxx CipOIa: a) Members of Council. Commissioners. Trustees. Boa~-d Xlembcrs. Statutory Officers, Officers, Employees or \Vorkers of tiao (-'it>' of Pickerin~ for Liabilitx xxhich arises out of the use or operation by such person o/'a licensed motor xehicle, or b) the evener of any licensed motor vehicle, for liabilitx xvhictn arises out of tine use or operation of such licensed motor vetnicle bv Members of Council. Commissioners, Trustees, Board Members. Statutes' Officers, Officer's. Employees or \Vorkers of the City of Picketing. Declares that such assumption of. tiabilitx be subject to tine Ibtloxving limitations, exclusions and conditions: a) This assumption of liability applies only to the use or operation of. a licenced motor vehicle in Canada or One United States of America by Members of Council, Commissioners, Trustees. Board Members, StatutoD' Officers. Officers, Employees or Workers on behalf of tine Git>' of' Picketing including travel to and from work and attendance at meetings. b) This assumption of liability applies only ira excess of. existing insurance carried by the owner of the licensed motor vehicle xxhich v, as being used or operated by Members of Council, Commissioners. Trustees. Board Xlembers. Statutory Officers. Officers, Employees or Workers at tine time of' the accidence and does not apply unless the licensed motor vehicle which was being used or operated bx such person at tine time of the accident is insured for not less than the minimum Ttnird Puny Liability Limit required by The Insurance Act for the Province of.Ontario. c) This assulnption of liability is subject to tiao agreements, conditions, terms and limit of liability insured in the Non-Owned Automobile Policy issued by tine Subscription Policy and shall terminate whenever such Non-Oxvned Automobile Policy is terminated. Report to Council CS 28-01 Subject: The City of Pickenng Liability Insurance Date: September 20, 2001 Page 2 ORIGIN: Director, Corporate Services & Treasurer AUTHORITY: The Municipal Act, R.S.O. 1990, as amended and Regulations Thereunder FINANCIAL IMPLICATIONS: The cost of this Contractual Liability Extension has been included in the premiums for the coverages previously purchased as contained in Report CS 19-01 . EXECUTIVE SUMMARY: Not applicable. BACKGROUND: In order for the Contractual Liability Extension (SEF #96) under the Non-Owned Automobile Policy the foregoing Resolution must be passed by the Board. This extension provides coverage for Board Members and employees extended coverage while driving their own vehicles on Board business. It is recommended that this be approved as it offers Board Members and employees that same level of coverage, while driving their own vehicles on Board business, as that provided while driving Board vehicles on Board business. However, in any claims situation it is always the insurance of the owner of the vehicle that applies first. This coverage would be in excess of that should the need arise. ATTACHMENTS: Not applicable. Prepared / Approved / Endorsed By: Gillis A. Paterson Director, Corporate Services & Treasurer GAP:vw Copy: T.J. Quinn, Chief Administrative Officer E. Buntsma, Director, Operations & Emergency Services N. Carroll, Director, Planning & Development Recommended for the consideration of Pickering City Council ,, Td~(~l~a-s-J. Qt~, C~ef Adminis~~