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HomeMy WebLinkAboutCS 92-05PICKERING REPORT TO EXECUTIVE COMMITTEE Report Number: CS 92-05 Date: December 6, 2005 From: Gillis A. Paterson Director, Corpoi'ate Services & Treasurer Subject: The New Deal for Cities and Communities Federal Gas Tax Revenues Recommendation: It is recommended that Report CS 92-05 from the Director, Corporate Services & Treasurer be received and: la) That the Mayor and City Clerk be authorized to execute the Municipal Funding Agreement for the Transfer of Federal Gas Tax Revenues Under the New Deal for Cities and Communities with the Association of Municipalities of Ontario in order to facilitate the transfer of gas tax revenues from the Government of Canada to the City of Pickering for 2005; lb) That the attached By-law be read three times and passed; 2a) That Council authorize and approve the establishment of the Frderal Gas Tax Reserve Fund; 2b) 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. Executive Summary: The Association of Municipalities of Ontario (AMO) is administering the gas tax funding program on behalf of the Federal Government for all municipalities in Ontario with the exception of the City of Toronto. As administrator, AMO has provided municipalities with a Municipal Funding Agreement that implements the main elements of the agreement between the Government of Canada, the Province of Ontario and AMO. What is interesting about this new program is the fact that it is not an application based initiative nor does it require matching funding. Rather this initiative empowers municipalities to make investments within the "environmentally sustainable municipal infrastructure projects envelope" as established under this aqreement. Gas tax funds will support environmentally sustainable municipal infrastructL~re to help ensure cleaner air, cleaner water and reduced greenhouse gas emissions. Under the environmental sustainable theme the following expenditures would be permitted: public transit, waste Report CS 92-05 Subject: The New Deal for Cities and Communities Federal Gas Tax Revenues Date: December 6, 2005 Page 2 water including storm water systems, community energy systems, local roads bridges and tunnels. Counci's formal approval is required to set up a separate reserve fund for the receipt of Federal gas tax revenues as per the agreement guidelines. Financial Implications: The City will receive $7.078 million to be phased-in over five years on a semi-annual basis. All monies must be expended on eligible infrastructure projects by December 31, 2012. For 2005, payment will be made as soon as AMO receives the fully executed Municipal Funding Agreement and By-law authorizing the agreement as provided for in the report. Schedule of Funding Payments Year July November 2005 $849,577.58 2006 $424,788.79 424,788.79 2007 566,321.81 566,321.81 2008 707,854.83 707,854.83 2009 1,415,709.67 1,415,709.67 TOTAL (For Five Years) $7,078,927.80 As expected, the City will be required to submit an "Annual Expenditure Report" by March 31st each year, following the municipal fiscal year to account for the funds received, expenditures made and progress achieved on an annual basis. In addition, the City will also be required to complete an "Outcomes Report," to be made publicly available both in hard copy and most likely on the City's website. The first outcome report is due March 31, 2008 and the report will have to provide information as how have the funds contributed to the objectives of cleaner air, cleaner water and reduced greenhouse .qas emissions. In addition, municipalities will have to provide a capital investment plan by the end of 2009. We are awaiting further information on this requirement. Background: In February 2005, the Federal Government announced that in 2005-06 Canada's cities and communities would receive a share of the Federal gas tax revenues for environmentally sustainable municipal infrastructure. On June 17, 2005, in fulfillment of this budgetary commitment, the Governments of Canada and Ontario, and AMO signed the Agreement for the Transfer of Federal Gas Tax Revenues under the New Deal for Cities and Communities. This agreement provided a framework for the transfer of gas tax funds to Ontario communities for investment in environmentally sustainable infrastructure. Over $1.8 billion in funds will flow to Ontario's municipalities over the next five years. AMO has recently completed its documentation requirements Report CS 92-05 Subject: The New Deal for Cities and Communities Federal Gas Tax Revenues Date: December 6, 2005 Page 3 and necessary criteria so it is now appropriate seek Council approval to participate in the program. Eligible Investments This program is not application based, but allows municipalities to make investments within the guidelines as established by the Federal Government. Environmentally sustainable municipal infrastructure projects are eligible within one of the following categories: public transit, water, waste water including storm water systems, community energy systems, local roads bridges and tunnels. For local roads and bridges projects, municipalities must submit in writing to AMO appropriate documentation, prior to spending the funds, outlining the impact of such investments on sustainability outcomes. Spending in other eligible project categories does not require pre-approval. It is our understanding that AMO has confirmed that the City's Highway 401 Pedestrian Bridge is viewed as a public transit related project and therefore does not require pre approval. It is interesting to note, that in the AMO document regarding Federal Gas Tax funds, they mention that municipalities may be able to use some of the Federal Gas Tax dollars to meet the municipal contribution towards COMRIF projects should they meet the criteria under this program. The only condition is that the total Federal Government contribution toward COMRIF cannot exceed 50%. We will be exploring this opportunity further and report accordingly. Incremental Principle A key condition of the agreement is that the funding either enabled a project's implementation, enhanced its scope or accelerated its timing. This condition was placed so that municipalities would not reduce other infrastructure funding and not to displace current capital investments or use the funding to reduce municipal taxes. Senior levels of government (Federal & Provincial) both recognize that there is an "infrastructure deficit" and they want this program to help address this deficit. Eli.qible Costs The Municipal Funding Agreement permits incurred eligible costs after April 1, 2005 for eligible projects that contribute to environmentally sustainable infrastructure and include: The capital costs of acquiring, constructing, renovating or rehabilitating a tangible capital asset including any debt financing charges; The fees paid to professionals, technical personnel, consultants and contractors specifically engaged to undertake the surveying, design, engineering, manufacturing or construction of a project infrastructure asset and related facilities ands structures; Report CS 92-05 Subject: The New Deal for Cities and Communities Federal Gas Tax Revenues Date: December 6, 2005 Page 4 The costs of environment assessments, monitoring and follow-up programs as required by the Canadian Environment Assessment Act and the Environment Assessment Act (Ontario). o The costs related to strengthening the ability of municipalities to enhance or develop integrated Community Sustainability Plans. Ineligible Costs The following costs are ineligible for Federal gas tax funding: 1. Costs incurred before April 1,2005; 2. Services or works that are normally provided by the municipality or a related party; Salaries and other employment benefits of any employees of the municipality or related party; Municipal overhead costs its direct or indirect operating or administrative costs and more specifically its costs related to planning, engineering, architecture, supervision, management and other activities carried out by staff; 5. Costs of feasibility and planning studies for individual eligible projects; Taxes for which the municipality is eligible for a tax rebate and all other costs eligible for rebates (e.g.G.S.T. rebate); 7. Costs of land or any interest therein, and related costs; 8. Cost of leasing of equipment by the municipality; 9. Routine repair and maintenance costs; 10. Legalfees; 11. Administrative costs incurred by the municipality as a result of implementing a funding agreement, subject to Eligible Costs above; and 12. Audit and evaluation costs. The Federal Gas Tax Revenue Agreement is an important recognition by the Federal Government of the challenges faced by municipalities in addressing infrastructure needs. The intent of this program is to provide Ontario municipalities with a source of stable, predictable and long-term funding towards environmentally sustainable municipal infrastructure projects which support environmental outcomes of cleaner air, water and reduced greenhouse emissions. Report CS 92-05 Subject: The New Deal for Cities and Communities Federal Gas Tax Revenues Date: December 6 2005 Page 5 Under the program's guidelines, the City is required to establish a Federal Gas Tax Reserve Fund for the purpose of "receipt, maintenance and disbursement of Federal Gas Tax revenues". In addition, the City will be required to submit an "Annual Expenditure Report" by March 31st following the fiscal year to account for the funds received, expenditures made and progress achieved on an annual basis. Attachments: 1. By-law to Enter into a Municipal Funding Agreement between AMO and the City of Pickering for the Transfer of Federal Gas Tax Revenues under the New Deal for Cities and Communities Federal Gas Tax Reserve Fund By-law Prepared By: Approved / Endorsed By: Stan Karwowski Manager, Finance & Taxation Gillis A. Paterson Director, Corporate Services & Treasurer GAP:vw Attachments Copy: Chief Administrative Officer' Recommended for the consideration of Pickering Ci,ty Council ~d~as J. Qu~n, Chie~-~dminist~Offic¢( THE C©A?OR~TI©N OF THE CITY OF PICKETING BY-LAW NO. /05 Being a By-law to provide fol' the establishment ol a Reserve Fund to be known as tile Federal Gas Tax Reserve Fund. WHEREAS under tile Municipal Ar;t, S.O., 2001 as amended, Section 417(1), the Council of the City of Pickenng may establish and maintain a reserve fund for any purpose for which it has authority to expend funds. WHEREAS the Council of tile Oily of Pickering approved Council Report CS 92- 05 authorizing the City to execute tile Municipal Funding Agreement for the Transfer of Federal Gas Tax Revenues Under the New Deal roi' Cities and Communities. WHEREAS the execution of the Municipal Funding Agreement will now provide the City of Pickering Federal gas tax funds to be used for eligible projects as outlined in the agreement. NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: The establishment of a ~eserve fund known as the Federal Gas Tax Reserve Fund is hereby authorized. The Federal Gas Tax Reserve Fund shall consist of such monies paid by the Federal Government througtl the Association of Municipalities of Ontario for the purpose of meeting the requirements of the program as described in tile Municipal Funding Agreement for the Transfer of Federal Gas Tax Revenues under the New Deal for Cities and Communities together with ~nveslments made and earnings derived there from. 3. 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 19th day of December 2005. Dave Ryan, Mayor Debi Bentley, Clerk THE COPPORATtON OF THE CITY OF PICKERING BY-LAW NO. /05 Being a By-law authorize the execution of a Mt~nicipal Furding Agreement for the Transfer of Federal Gas Tax Revenues WHEREAS in order to facilitate tile transfer of gas tax revenues flora the Government of Canada to the City of Pickering it is necessary to execute a Municipal Funding Agreement. 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 the Municipal Funding Agreement for the Transfer of Federal Gas Tax Revenues under the New Deal for' Cities arid Communities with the Association of Municipalities of Ontario in the form attached as Schedule "A" to this By- law. BY-LAW read a first, second and third time and finally passed this 19th day of December 2005. David Ryan, Mayor Debi A. Bentley, City Clerk Schedule A MUNICIPAL FUNDING AGREEMENT FOR THE TRANSFER OF FEDERAL GAS TAX REVENUES UNDER THE NEW DEAL FOR CITIES AND COMMUNITIES This Agreement made in duplicate as of _ day of ,2005. BETWEEN: AND: The Association of Municipalities of Ontario (referred to herein as "AMO") The Corporation of the City of Pickering (referred to herein as the "Recipient") WHEREAS Ontario municipalities recognize that all governments must work together coltaboratively and in harmony to ensure that investments in communities are strategic, purposeful and forward-looking. WHEREAS this Agreement includes the speCific provisions on the utilization of the transfer of federal gas tax for environmentally sustainable municipal infrastructure to primarily suppod environmental sustainability objectives under Canada's New Deal for Cities and Communities. WHEREAS Ontario municipalities agree that open communication with the public will best serve the right of Canadians to transparency, public accountability, and full information about the benefits of New Deal investments in communities. WHEREAS the Recipient wishes to enter into this Agreement in order to padicipate in the transfer of federal gas tax as part of the New Deal for Cities and Communities. WHEREAS AMO is carrying out the fund administration and coordinating role as is obligated in the Canada-Ontario-AMO-City of Toronto Agreement for the Transfer of Federal Gas Tax Revenues under the New Deal for Cities and Communities to undedake cedain activities and requires Recipients to underlake activities as set out in the Agreement. THEREFORE the Padies agree as follows: 1. DEFINITIONS AND INTERPRETATION 1.1. Definitions When used in this .',-l!},reement (including the cover and execution pages and call of the schedules), the folto,,~.ing terms shall have the meanings ascribed to them below unless the sdbiect matter or context is inconsistenl there',',ith: "Agreement" means tt~is Agreement, including the cover and execution pages and all of the schedules hereto, and ail amendments made hereto in accordance with the provisions hereof. "Annual Expenditure Report" rneans the written annual reI',.ort to be prepared and delivered to AMO as set out in Section 7.1 hereto "Association of Municipalities of Ontario (AMO)" means a legally incorporated entity under the Corporations Act (Ontario). "Audit Staternent" means a written audit statement to be prepared and delivered to AMO as set out in Section 7.1 hereto. "Base Amount" means the total municipally-funded capital spending on Municipal Infrastructure by' the Recipient in the period January 1, 2000 to December 31, 2004 less monies raised under the Development Charges Act, I997 (Ontario) and received under Infrastructure Programs. "Canada" means Her Majesty in Right of Canada represented by tile Minister of State (Infrastructure and Communities). "Capacity Building Projects" means projects and activities that strengthen the ability of tile Recipient to develop and implement integrated community sustainab//ity p/aris, as more particularly described in Section 4.3 "Capital Investment Plan" mear~s a document, such as a capital plan, created through a public process, with appi-oval from municipal elected officials, providing a detailed understanding of anticipated investments into tangible capital assets that are considered "priorities", along with a rationale. "Environmentally Sustainable Municipal Infrastructure (ESMI) Projects" means Mun/clpal Infi'astmcture projects that: i. improve the quality of the environment and contribute to reduced greenhouse gas emissions, dean ware?, or dean air; and ii fall within the category of projects described in Section 4.1 hereto. 2 "Eligible Costs" means those costs described in Schedule B attached hereto, incurred in respect of EI/g~ble Projects. "Eligible Projects" means C'~V:,~c~ty Bu//dfng PrcT'ects and ESMI Proj'ects as defined in Section ,--l. 1 hereto "Eligible Recipient" means~ i. a Mun/c,'pal/ty or its duly authorized agent (including its wholly owned corporation); ii. a non-municipal entity, on the condition that the M,,~n/c~pa//ty where the proposed Eli~.7ib/e Project would be housed has indicated support for the Elig/b/e Project through a formal resolution of the municipal council. A non-municipal entity includes: · for-profit organizations or · non-gc,'ernmental organizations, or · not-for-profit organizations. Local Roads Boards and Local Services Boards in territon/not within the jurisdiction of a Municipality. iii. Federal and provincial entities in the form of departments, corporations and agencies are not eligible recipienls. "End of Funds" means March 31, 2010. "Event of Default" has the meaning given to it in Section 12.1 of this Agreement. "Fiscal Year" means tile period beginning April 1 of a year and ending March 31 of tile following year. "Funds" mean the Funds made available pursuant to this Agreement and includes any interest earned on the said Funds. "Infrastructure Program" means Canada's infrastructure programs in existence at the tirne of the execution of this Agreement including: The Canada Strategic Infrastructure Fund, The Border Infrastructure Fund, The Municipal Rural Infrastructure Fund and The Infrastructure Canada Program. "Integrated Community Sustainability Plan" means a long-term plan, developed in consultation with community members that provides direction for the community to realize sustainability objectives, including environmental, culture, social and economic objectives, as defined in Schedule G. "Large Municipalities" means ttqose Municipalities with a 20,'; 1 National Census data populatiort of 5(),(),000 or more including the Regional Municipalities of Durham, Peel ard York and the Cities of Mississauga and Otta~,', a. "Lower Tier Municipality" means a municipa~ ty that forms part of an upper-tier/'¢.unic/p~ff~ty for municipal purposes, as defined under the Mun/c/pa/ Act, 2001 ',Ontario) "Municipal Fiscal Year" mear~s tile period beginnincj Januar:/1 of a year and ending December 31 of the same year "Municipal Infrastructure" means tangible capital assets in Ontario primarily for public use or benefit owned by the Recip/ent. "Municipality" means every municipality as ctefined in the Mun/cipal Act, 2001 (Ontario). "Outcomes Report" means a vvntten report prepared by the Recip/ent which reports on tile outputs and outcomes of the use of the Funds according to Section 7.2 hereto. "Oversight Committee" means tile committee established to manage the in'~plen~entation of the Canada-Ontario-AMO-City of Toronto Agreement for the Transfer of Federal Gas Tat',( Revenues Under the New Deal for Cities and Communities "Parties" means AMO and the Recipient. "Recipient" has the meaning given to it on the first page of this Agreement "Third Party" means any person, other than a party to this Agreement that participates in the implementation of an Eh'gible Project. "Upper Tier Municipality" means a Mt.;nicipality of which two or more lower-tier municipalities form part for municipal purposes, as defined under the Mun/c//~a/Act, 2001 (Ontario). 1.2. Interpretations: Herein, etc. The words "herein", "hereof" and "hereunder" and other words of similar import refer to this Agreement as a whole and not any particular schedule, article, section, pa'agraph or other subdivision of this Agreement 4 Currency Any reference to currency is to Canadian currency an(;t ap, v amount advanced, paid cl calculated is to be advanced, paid ,pr calculated Canadian currency. Statutes. Any reference to a federal or provincial statute is to such statute and to the regulations made pursuant to such statute as such statute and regulations may at any time be amer~ded or modified and in effect and to any statute or regulations that may be passed that have the effect of supplementing or superseding such slatute or regulations. Gender, singular, etc. Words importing the masculine gender ir'~clu(:te the feminine or neuter gender and words in tile singular include the plural, and vice versa. 2. TERM OF AGREEMENT 2.1. Term. Subject to any extension or termination of this Agreement or the sup~,ival of any of the provisions of this Agreement pursuanl to the provisions contained herein, this Agreement shall be in effect from the date set out on tile first page of this Agreement, up to and including March .31,2015. 22. Notice. Any Party may terminate this Agreement on two (2) years written notice. 2..3. End of Funds Notwithstanding anything in this Agreement and regardless of the Eligible P/OJect's state of completion, AMO shall not be obligated to provide Funds under this Agreef~nent after the End of Funds. 3. RECIPIENT REQUIREMENTS 3.1. The Recipient agrees to undertake and: a submit in writing 1o AMO for the local roads and bridges Eligible PrOject category prior to spending the Funds the appropriate documentation on the impact of such investments on sustainability outcomes in the form in Schedule C of this Agreement hereto; b. ensure that the Funds will result in net incremental capital spending on Municifpal Inf~structu~ei c. ensure lhat there is no reduction in capital funding provided by municipalities for Municipal Infrastructure. In the case of Recipients that are Municipalities in excess of 100,000 in populalion, ensure that over the period of April 1, 2005 to March 31,2010 the Rec~pient:s capital spending on Municipal If~ff¥~Stf'L~Ct~]f-O will not fall below its Base Amount; and, erasure any of ~ts con?acts for the supply of serwces or materials to implen'~ent its responsibilities under this A{_/ree/~Ter?t ,,,,'itl be awarded in a way thai is transparent, cor.'npetitive, consistent with value for money principles and p.]rsuant to its adopted procurement policy. 4. ELIGIBLE PROJECTS 4.1 Eligible Projects, ESM/PrO/ects include the following: a Public transit, e g.: i. Rapid Transit: tangible capital assets and rolling stock (includes light rail, heavy rail addilions, subways, ferries, transit stations, park and ride facilities, ~rade separated bus lanes and rail lines); ii. Transit Buses: bus rolling stock, transit bus stations; iii. Intelligent Transport System (ITS) and Transit Priority Capital Investments: iv ITS technologies to improve transit priority signalling, passenger and traffic information and transit operations; v. Capital investments, such as Iransit queue-jumpers and High Occupancy Vehicle (HOV) lanes; vi. Para transit: rolling stock, fixed capital assets and systems; vii. Related capital infrastructure: bus-loading bays, road rehabilitation for bus-only lanes; viii. Active transportation infrastructure (e.g, bike lanes). b. Water, e.g.: Drinking water supply; drinking water purification and treatrnent systems; drinking water distribution systems; water metering systems c. Wastewater, eg: V'Tastewater systems including sanitary and combined sewer systems; and separate storm water systems. Solid waste, e.g: Waste diversion; material recover,/facilities; organics management; collection depots; waste disposal landfills; therrr~al treatment and landfill gas recuperation - Community Energy Systems, e.g.: Cogeneration or combined heat and power projects (where heat and power are produced through a single process); District heating and cooling projects where heat (or cooling) is distributed to more titan one building. 6 Local roads, bridges an:J tunnels, actn, e trar~sFortation infrastructure (eg.. bike lanes) that enhance sustainability outcomes. 4 2. Exception. For Large Municipalities, tile list of eligible categories will z/of calegories in Section 4.1 a t<~ e. consist of no more than two ':~' - 4.3 Capacity Building. All f:tec/p/e:~ts may also invest in Ca?~c,,'ty Bu,'ld/rtg Projects including the following activities: a. Collaboration: building partnerships and strategic alliances; participation: and consultation arid outreach; b. Knowledge: use of new technology; research; and monitorir~g and evaluation; c. Integration: planning, policy development and implementation (e.g., environmental mar~agernent systems, life cycle assessment'l. Recipient fully responsible The Recipient shall be fully responsible for tile complete, diligent and timely implementation and completion of the Eligible ProJect, net of any Funds received. 4.5 . Environmental Assessment. The Recipient shall cornply with all legislated environmenta! assessment requirements and agree that no Funds will be committed to an Eligible Project until all environmental assessment requirements have been satisfied including the implementation of all mitigation measures identified in any environmental assessment of the Eligib/e Proj'ect, 5. ELIGIBLE COSTS 5.1 Eligible Costs. In order for cost to be eligible for Funds pursuant to this Agreement the cost must be in accordance with Schedule B. 5,2. Discretion of Canada. Sut}ject to Section 5.1, the eligibility of any items not listed in Schedule B to this A~reement is solely the discretion of Canada. 5.3. Reasonable Access Tile Recipient shall permit C~nada reasonable access to all records relating to all Eligible PrOjects that have received Funds.- 5.4¸ Retention of Receipts. The Recipient shall retain all evidence (such as invoices, receipts, etc.) of payments related to Eligible Costs and such supporting documentation must be available to C~nada when requested and maintair~ed by the Recipient for' audit purposes for at least three (3) years after March 31, 2015 6 FUNDS 6 1 Allocation of Funds ~,~"¢" will allocate the ..... · ,~,,,~, F, ,'~,-¢,- to f~ec/'?/er~t$ or1 a per capita basis with allocations made on a 50:50 basis to OpFt,¢ Tier Municipalities and Lower F'er Munic/sal/t/es, where they exist. 6 2 Transfer of Funds. Where a Recipient decides to alloca(e F~;nds to another Eligible Recipient it must be done by by-law The by-law must be passed and submitted annually to AMO on or before blarch 31'~ The by- law will identify the Eligible Recipient and the amount of Funds the Eiig/ble Recipient is receiving for that MuniciPal Fiscal Year. Transfer of Funds Reporting. In the case of a Reci,Lxent transferring Funds in Section 6.2 of this Agreement the Recipient is still required to submit an Annual Expenditure Report as per Section 7.1 a, c and f. The Eligible Recipient is responsible for all other provisions of Section 7.'1 and 7.2. 6.3, Use of Funds. The Recipient acknowledges and agrees the Funds are intended for and shall be used only for Eligible Costs in respect of Eligible Projects. 6.4 · Schedule of payout of Funds. The Recipient has agreed that all Funds are to be transferred by AMO electronically to the Recipient twice yearly on or before July l5~ and November15~. More specifically on the basis set out in Schedule A. 6.5. Use of Funds. The Recii.~/ent is permitted to carry over unexpended Funds from the year received into subsequent years in a reserve fund account. The Recipient shall ensure: a. Any investment of unexpended Funds be in accordance with Ontario law and the Rec~pient's investment policy; and, b. Any interest earned on Funds be only applied to Eligible Cosls on Eligible Pf-OJects or to eligible administration costs on the basis set' out in Schedule B 6.6. Funds advanced. If Funds advanced by AMO to the Recipient are not paid by the Recipient in respect of Eligible Costs within three (3) years after the end of the year in which the advance payment was received, AMO shall consult witt~ the Recipient and may elect to withhold further payment of Funds on the basis set out ira Schedule A hereto. 6.7. Expenditure of Funds The Recipient shall expend all Funds by March ,'h ,') 31, 8 GST. -File use ol Fund.? is based on the net amo',_~nt of goo<ts and services tax to be paid bT' the RecZP/ent pursuant to the E:~'c/se Tr~x/act (Canada) net of any apFlicab!e rebates Limit on Canada's Financial Commitments The ReciP/er, t may use Fu,';ds to pay up to one hundred percent (10C ?~) of E/igib/e Costs of an EI/'~ib/e Prq/ect. t-lowever~ if the Rec/p/ent is receiving money under an h?f.r'ast;'ucture Program i,~. respect of an E!ig/b/e Project to which the Rec¥~,ient wishes to apply Fuz;ds, the iT~a)(ir}lurT~ federal cor~tribution limitation set out in any Ir, frm~tr~cture Program contribution agreement made in respect of that El,'£;?b/e Project shall continue to apply. 6.1 0WithholdingPayment AMO rnay withhold payment of Funds where the Recipient is in default of compliance with any provisions of this Agreement 6.1 1.1nsufficient funds provided by Canada If Canada does not provide sufficient funds to continue the Funds for any Fiscal 'rbar during which this Agreement is in effect, AMO may terminate this Agr'eeme.'ff in accordance with the terms specified in Section 12.4 of this Agreement. 7. REPORTING REQUIREMENTS 7.1. Annual Expenditure Report. The ReciPient shall repod in the form in Schedule D hereto due by March 31~ following the MunicF~al Fiscal Year on: a. the amounts received from AMO under this Agreement in respect of the previous Municipal Fiscal Year; b. the amounts received from another Eligible Recqpient; c the amounts transferred to another Eligible Recipient; d. amounts paid by tile Recipient in aggregate for Eligible Projects; e. amounts held at year end by the Recipient in aggregate, including interest, to pay for E/igible Projects; f. indicate in a narrative the progress that the Recipient has rnade in meeting its cornrr~itments and contributiorm; g. a listing of all Ehgib/e prO/ects that have been funded, indicating the location, investment category, amount of Funds, nature of the investment and expected outcomes, as identified in Schedule E; and, h an annual Audit SMten~ent prepared by the Recipient's auditor in F~ ' accordance with section :.;815 of the Canadian institute of Chadered Accountants Handbook - Special Repods -- Audit Reports on Complia~ce V.:,,th Agreements, Statutes and Regulations, providing assurance that the terms of the Agzeement have been adhered to and Funds re,:ceived by the, been spent in accordance with the AETreement. ,' 2. Outcomes Report. The ,.~uc ,...,:¢,,~ shall acccunt in writin,;j for outcomes achie'/ed as a result of the Fur~ds through an Outcomes Report !o be subm, itted to AMO and to be rnade available pubticly in manner consistent with financial reporting under the Mur?,/cFt'sl Act, 2001 SO 200'1 c.25 'The Outcomes Report will report in writing on the cumulative investments made. in a manner to be provided by A~t/O, including information on the degree to which these investments have actually contributed to the object,yes of cleaner air, cleaner water and reduced greenhouse gas emissions. 8. OTHER REQUIREMENTS 8.1. Capital Investment Plan. The Recipient acknowledges and agrees to undertake and complete, prior to the end of the fourth year of this Agreement, a Cap/ts/I.,~vestment P/an 8.2. Integrated Community Sustainability Plan. The Rec{pient acknowledges and agree° that over the life of this Agreement to develop or enhance an Integrated Community Sustainabil/ty Plan. either bY itself or as part of some higher level of agglomeration, as in Schedule G hereto 8.3. Public Sector Accounting Board. The Recip/ent acknowledges and agrees that prior to March 31,2010, the Recipient will adopt and use the accounting rules of the Public Sector Accounting Board, in accordance with provincial regulations 9. RECORDS AND AUDIT 9.1 Accounting Principles. Ail accounting terms not otherwise defined herein have the meanings assigned to them: all calculations will be made and all financial data to be submitted will be prepared in accordance with generally accepted accounting principles (GAAP) in effect in Ontario. GAAP will include, without limitation, those principles approved or recommended from time to time by the Canadian Institute of Chartered Accountants or any successor institute, applied on a consistent basis. 92. Separate Records. The f?ecipient shall maintain separate rec°rds and documer~tatior~ for the Fu;x-L? and keep all records includir~g invoices, 10 '0¸3. stater'ner~ts, receipt?, and vouchers ~n respect of Eiig~ble ?rcyects that Funds are paid in respect of for three i3) },ears after the March 31, 2015. Upon reasonable notice, the Recipient shall submit a!l records and d,~-cumentation retatir~g to tt~e Funds to C,:'-mad,a for inspection or audit. External Auditor. Car~-~da may requesl, upon written notification and AMO has agreed, to con~plete and provide to Can~'~cJ~. an audit of' ~,c~,ble Proj'ect. AMO shall require the assistance of an external auditor to carry out an audit of the nla~erial referred to in Section g2 of this Ag;reement. If so, the Recipier~t shall, upon request, ~etain an external auditor acceptable to Canad,:-~ and AMO at tile Recii. pient's sole expense 'File Recipient shall ensure that any auditor who conducts an audit pursuant to this section of this A,:.lrcem, e;~t or otherwise, provides a copy of the audil report to AMO and C~'~nr?.da at tile same time that the audit report is given to the Recipient. 10. INSURANCE AND INDEMNITY 10.1.Insurance. The Rec,'/?ient shall put in effect and maintain in full force and effect or cause to be put into effect and maintained for the period during which this Ac~r'eement is in effect all the necessary insurar~ce that would be corlsider~J appropriate for a prudent Recipient of this type undertaking a project similar to tile E/icjible Projects, ~rlcluding, where appropriate and without limitation, property, construction and errors and omissions insurance and identifies Canada and AMO as additional insured for the purposes of the Eligible Pf'O. lects only. 10.2.Certificates of Insurance. Throughout t[~e term of this Ag,~'eement, the Recipient shall provide AMO v:iti~ a valid cer-tificate of insurance that confirms the requirements of Section 10.1. 10 3.AMO not liable a, In no event shall Canada and AMO be liable for: Any bodily injury, death or property damages to tine Recipient, its employees, agents or consultants or for any claim, demand or action by any Third Party against the Recipient, its employees, agents or consultants, arising out of or in any way related to this Agreement; nor Any incidental, indirect, special or consequential damages, or any loss of use, revenue or profit to the Recipient, its employees, agents or consultants arising out of any or in any way related to this Agreement. 104 Recipient to Indemnify. Tile f:~,ecipier:t agrees to indemnify and hold harmless Canada and A,~.40, its officers, sen,/ants, employees or agents, from and against a!l~lai['rlsanddemands, loss, costs damages ' n 'I 1 su~ts or other proceedings by whomsoe~'er brought or prosecuted i~ any manner based upon, or occas oned by any iBjury to persons, damage to or loss or c~estr'uc~ion of property: economic loss or infringement of rights caused by or arming d,~rectly or indirectly from~ a. the Recip/en~"s ~'l~c./,,bie x/~.~.~u~,, b the performance of this As~reement or the breach of any term or condition of this A?},reement by the ~ec~o/enL its officers. employees and agents, or by a Third Pa~ty, its officers, employees, or agents, c the performance of tt~is Agreement or the breach of any term or condition of this Agreement by the Recipient, its officers, employees and agents, or by a Th/rd Party, its officers, employees, or agents. d. the design, construction, operation, maintenance and repair of any pa~ of all Ef~gible Pr~b~e,:;ts; and e. any omission or otlner wilful or negligent act of the Indemnifier or P~ird Party and their respective employees, officers, or agents. 10.5.Exception. Except to the extent to wl~ich such claims and demands' losses, costs, damages, actions, suits, or other proceedings related to the act or negligence of an officer, employee, or agent of AMO in the pe,fformance of his or her duties 11.TRANSFER AND OPERATION OF MUNICIPAL INFRASTRUCTURE 11 1.Retain Title. The Recip/ent shall retain title to, and ownership of, the MunidPal Infrastructure resulting from the Eligible Project for at least ten (10) years after the Eligible Project completion. 11.2.Repayment Any time within ten (10) years from the date of completion of the Eligible Project, tile Rec~?ient sells, leases, encumbers or othen, vise disposes of, directly or indirectly, any asset constructed, rehabilitated or improved, in whole or in part, with funds contributed by Canada under the terms of this Agreement, other than to Canada, Ontario, a M~micipaiity, or a C~own corporation of Ontario that is the latter's agent for the purpose of implernentir~g this Agreement, tile Recipient shall repay Canada on derr~and, a proportionate amount of the funds contributed by Canad?~, as follows: 12 Where Eligible Project asset is sold, leased, encumbered or disposed ot~: Repayment of contribution (in current dollars) 100% ~- V,Sthin 2 Years after Eligible Projeci completion Betwer--n 2 arid 5 Yeals after Eligible comp ,~t~nn B~]~;~-en 5 and 10 Years after Eligible 1 Rvc,~,~,~t .-~, ~-,11 advise C;:mada and AMO ira writing 120 days in advance and at any time during the ten ('10) years following the completion of an El~gi;)/e. F?o/.i;ct if any aos..t constructed, rehabilitated, or improved in whole or in part with Funds is sofd, discharged or alienated in any way other than to Canada. 12. DEFAULT AND TERMINATION 12.1.Event of Default At~,O may declare in writing that an event of default has occurred when the ,~ec~:?r'ent has not complied with any condition, undertaking or rnaterial term in this Agreement. AMO will riot declare in writing ti'mt an event of default has occurred unless it has consulted v,/ith the Recipient Each and every one of the following events is a potential "Event of DefaulF; a Failure by the Rec~?ient to deliver ara Annual Expenditure Report, Audit Repof't or the Outcomes Report. b. Delivery of an Annual Ex?enditure Report or Audit Report that discloses hOn.-compliance with any condition, undertaking or material tern'~ in this ,-qar~:ement 12.2.Waiver. AM( may witl;draw Event of Default if the Recipient, within thirty (30) days of receipt of tile notice, either correct the condition or event or dernonstrate, to the satisfaction of Ak,fO that it has taken such steps as are necessap/to correct the condition. 12.3.Remedies on default. If AMO declares that an Event of Default has occurred, after thirty (30) days of declaration, it may immediately exercise one of the following remedies: a. In the case of default under Subsection 12.1 a., termir~ate or suspend its obligation to pay the Funds If AMO suspends payment, it r-nay pay suspended funds if AMO is satisfied that the default has been cured. 13 In It]e case of any zti~er default, A?,,'!O will suspend its obligation Io Pay Funds related to the e'~,ent of default pending A,"~.fO's satisfaction that 'l~,~,,_ dei}utt has beer] cured 13. CONFLICT OF INTEREST I3.1 No conflict of interest. No member of the House of Commons. the Senate oi~ Canada, the Legislature of the Province o1: Ontario or AMO Board of Directors will be admitted to any share or part of any Contract made pursuant to this A!'.'.!ree~,~e,~t or to any benefit arising therefrom. 14. NOTICE 14.1.Notice. Any notice, information or ctocument provided for under this Agreement will be effectively given if delivered or sent by letter, postage or other charges prepaid, or by facsimile or em. ail Any notice that is delivered will have been received on delivery; and any notice mailed shall be deemed to have been received on the eighth (8) calendar day following the day on which it was mailed. 14.2.Representatives. The h'~dividuals identified in Section 14.3 of this Agreement, in the first instance, act as AMO's or the Recipient's, as the case may be, representative for the purpose of implementing this Agreement. 14.3. Addresses for Notice. Further to Section 14.1 of this Agreement, notice can be given at the following addresses: a If to AMO: Executive Director Federal Gas Tax Agreement Association of Municipalities of Ontario 393 University Avenue, Suite 1701 Toronto ON MSG 1E6 Telephone: (416) 971-9856 Facsimile: (416) 971-6t91 14 If to the Recif:,/e?,t: Thomas Quinn CAO City of Pickering One the Esplanade Pickering, ON L1V6K7 · (J0,,)420-2222 Telephone c ~' Facsimile: (905) 420-0515 15.MISCELLANEOUS 15.1.Severability. If 'for any reason a provision of this Agreement that is not a fundamental term is found lo be or becomes invalid or unenforceable, in whole or in pad, it will be deemed to be severable and will be deleted from this Agreement, but all the other terms and conditions of this Agreement will continue to be valid and enforceable. 5.2.No waiver. The failure of AMO to insist in one or more instances on performance by the Recipient of any of the terms or conditions of this Agreement shall not be construed as a waiver of AMO's right to require further performance of any such terms or conditions, and the obligations of the Recipient with respect to such performance shall continue in full force and effect. 5.3.Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable in Ontario. 15.4.Survival. The following schedules, sections and provisions of this Agreement shall sun.,ive lhe expiration or early lerminalion hereof: Sections 5, 7, 9.3, 10.4, 10.5, 11, 12.3, 15.7 and ScheduleG. 5.5.AMO and Recipient independent. Nothing in this Agreement and no action by the Parties will establish or be deemed 1o establish a partnership, joint venture, principal-agent relationship, or employer- employee relalionship in any way or for any purpose with Canada orAMO whatsoever. 15.6.No Authority to Represent. Nothing in this Agreement is to be construed as authorizing one Partyto contract for or to incur an'/ obligation on behalf of the other o~ to act as agent for the other. Nothing ~n this Agreement is to be construed as authorizing any Recipient or any 15 Th;r:? P.art..?' to contra:zt for or to, incur any obligation on behaif of eilher Pa,,ty or to act as agent for e~ther Part:,. 157.Debts Due to AMO. Any amount owed to Can~.~da under this Agreement w~il~.~,,~n~*;*ut,~._ a debt d~- ,~ to ,4,VO, which the Pecip/ent will reimburse forthv,.~th, on demand, to AMO 15.8.Priority. In the event of a conflict, the part of this Agreen, tent that precedes the signature of the Part/es will take precedence over the Schedules. 16.SCHEDULES 16 '1 This ~ ~':r',e '~ A~,r~ ~, ..~,~. irnc. tuding: Schedule A Schedule B Schedule C Schedule D Schedule E Schedule F Schedule G Schedule of Fund Payments Elzgible Costs Impact of lnveslment on Sustainability Outcornes for Local Roads and Bridges Annual Expenditure Report Outcome Indicators Communications Integrated Community Sustainability Plans constitute the entire agreement between the Parties with respect to the subject matter contained in this Agreement and supersedes all prior oral or written representations and agreements 16 17. SIGNATURES IN WITNESS WHEREOF, AMO and the Rec,/eni have respectively executed sealed and delivered this Agreement on the date set out on the front page. RECIPIENT'S NAME: By: City of Pickering Affix Corporate Seal Name: Title: Date Name Title: Date THE ASSOCIATION OF MUNICIPALITIES OF ONTARIO By: Affix Corporate Seal Name: Pat Vanini Date Title: Executive Director In the presence of: Witness Name' Title: Nancy Plumridge Director of Administration and Business Development Date 17 SCFtEDULE A SC HE DULE O F FUND PAYMEHTS R~_C/Pi?FF'S flAME: City of Pickering ?:'The following represents tile minimum Fu~ds and schedule of payments over the lil'e of this Year Schedule of Fund Payments July 15th November 15th 2005 $849,577 58 2(}06 $424,788 79 $424,788 79 2907 $566,32181 $566,321.82 2008 $707,854 83 $707,854 84 2009 $1,415,~0967 $1~415,709 57 SCHEDULE B ELIGIBLE COS TS Eligible Project Costs ¸1. EI/'g/b/e Costs are all direct costs which are in Canada's opinion: a properly and reasonably incurred and paid by the Rec~p/ent and no other person' and b. paid under a contract for goods and services necessary for the ~n+lementation of an E,/,7/b,.u Project. EliLTtb/e costs r'nay include only the following: a. the capital costs of acqu',r'ing, constructing, renovating or rehabilitating a tangible capital asset and any debt Iinancing charges related thereto; b the fees paid to professionals, techr~ical personnel, consultants and contractors specifically engaged to undertake the surveying, design, engineering, manufactunng or construction of a project infrastructure asset and related facilities and structures, c the costs of environmental assessments, rnonitoring, and follow-up programs as required by the Canadian Envirorlmental Assessment Act; or a provincial equivalent; d. the costs related to strengthening the ability of municipalities to enhance or develop Integ;'ated Cof?Tn?4;f~ity Sustainabihty Plans. Employee and Equipment Costs a. In the case of Recipients that are remote municipalities the out of pocket costs (not overhead! related to employees or equipment may be included in its Eligible Costs under the following conditions: i. the Recipier¢t has determined that it is not economically feasible to tender a contract; ii employees or equipment are employed directly in respect of the work that would have been the subject of the contract; and iii. the arrangement is approved in advance and in writing by the Oversight Con;mittee. Adn'~inistration Costs a That podion of Funds representing interest earned may be used to pay for administration costs related to the implementation of the Agreer'n~.,rh. Ineligible Project Costs . d~.m~, are ineligible costs' Costs related to the followinq' ~ ¢' a. Eligible Proj'ect costs incurred before April 1~, 2005 b services or works that are normally provided by the Recipient or a related party; 19 c salaries and other employn~e,qt benefits of any erT'pleyec's of ~he Recif?,~ent or relatezt part'/except as indicated in Section cn of Schedule B above, d a Recip~ent's overhead costs, its direct or indirect operating or administrative costs, anti more specifically its costs related to planning, engineering, architecture, supen,,ision, management and other aclivities normally carried out by its applicant's staff; e costs of feasibility and planning studies for individual El~gible Pro./ects; f taxes for which the RedPient is eligible for a tax rebate and all other costs eligible For rebatesl g. costs of land or any interesl therein, and related cosls; h. cost of leasing of equipment by the Recipient excepl for as indicated in Section 3 of Schedule B above; - i. routine repair and maintenance costs; j. legal fees; k. administrative costs incurred by the Recipient as a result of implementing this Agreement, subject to Section 4 of Schedule B above; and I audit and evaluation costs 20 SCHEDULE C IMPACT OF INVESTMENT ON SUSTAINABII. ITY OUTCOMES FOR LOCAL ROADS AND BRIDGES PROJECT DOCUMENTATION Municipal Name Municipal Contact Name: Position' Municipal mailing address' Tel~'-nhone number: Fax number: ~-rna,I '~-~%~{-D%scription (type of project (i.e. road resurfacing, road or structure rehabilitation, road drainage improvements, traffic, signal installation, installation of turning lanes)) bridge name, start & end point, lot & concession- attach key plan if Project Rationale (benefits and beneficiaries) ................. Outputs (describe which of the ~uts are met ~A'. this project Other Benefits (if the project benefits are not included in the list of Cuts defined in this Schedule C, provide the rationale and the outcomes for the project- i.e. describe how the project wilt contribute to cleaner air, cleaner water, reduced greenhouse gas emissions.) (provide measurements of the Notes: 1 This Schedule must be completed ~n ac(ordance to instructions provided in "'Transfer of Federal Gas Tax Revenues Under the New Deal for Cities and Communities Municipal Funding Agreement Guide'~ wNch will h~ updated once "output measures" and "outcome measures contained in ucl'edu,~ E of this Ag,~m~;n, have been developed, and approved by the Overs~lht ScheJu!e '.., hereto and are :;,xuj~:., r.., . Outcomes and Outputs: Projects involvinq the restoration and rehabililation of existing assets in order to extend the asset lifespan by several ~/ears i.e. resurfacincj existing roadways and structure rehabilitation. 2. Projects incorpora_ti_n~nificant quantities of recycled and reclaimed materials i.e. cold-implace pavc. ment reo/cling, expanded asphalt recycling and granular base reclamation. 3. _Projects which si.qnificantl¥ reduce travel times and distances ie. new roads and bridges that reduce congestion, increasing travel speeds on the road network, create travel time savings and minimize travel distances. 4 Installation of turnin~ lanes i.e. construction of left turn lanes, right turn lanes, left turn slip around lanes, and right turn tapers. 5. Traffic siqnal installation, traffic signal up.qradin_cl and traffic signal co- ordination project. i.e. installation of new traffic signals, upgrading traffic signal installations, and projects to co-ordinate the timing of traffic signals in urban areas. Note' If the EI/g/ble Pro]ect is not one of the above outputs, the Reci?ient must provide the rationale for including the E/igible Project including how tt~e Eligible Project will achieve the outcornes of cleaner air, cleaner water, and reduced greenhouse gases and t~ow the outcomes will be met 22 SCHEDULE D ANNUAL EXPENDITURE REPORT O 00 000 0.00 000 000 000 000 0 O0 0.00 000 0.00 0 O0 000 0 O0 0 O0 0 O0 000 0 O0 0.00 23 SCHEDULE D ANNUAL EXPENDITURE REPORT (cont'd) iPROGRESS REPORT: FIS, OJECT D,E, TAILS: r, ve~ r ~c ,. , Project tit,e, location, ' ~ ....t cate~sry, amour~t of Fur~c/s r~alure of the inv(.~stment and jexpected outcomes 24 SCHEDULE E OUTCOME INDICATORS The impact of tine use of the/-':L/rx-/s will be measured through a set of core indicators, to be developed by the OversiB~ht Committee and linked to the roi!owing outcomes and outputs: C)!Jtcomes a) Cleaner Air: [DETERMINE iNDICATOR] b) Cleaner Water: [DETERMINE INDICATOR] c) Lower Greenhouse Gas Emissions (GHGs): [DETERMINE INDICA 7'OR] Outputs: ai Community Energy Systems: [DETERMINE INDICATOR] b) Public Transit Infrastructure: [DETERMINE INDICATOR] c) Water Infiastructure: [DETERMINE tNDICATOR] d) Wastewater Infrastructure: [DETERMINE INDICATOR] e) Changes in effluent quality [DETERMINE INDICATOR] f) Solid waste [DETERMINE INDICATOP,,] g) Local Roads and Bridges: [DETERMINE INDICATOR] h) Capacity Building: [DETERMINE INDICATOR] 25 SCHEDULE F COMMLJNICATIONS The Rec;'p~.er?t shall; a ensure all communications by the RecF)/ent referring to projects funded under this Agreement will clearly recognize Canada's investments~ b ensure permaner~t signage at tile location of projects receiving investments under this Agreer~lent. prominenlly identifying the Government of Canada's investment and including the Canada wordmark. VVhere there is no fixed location for signage, such as a transit vehicle, a prorniner~t marker will recognize the Government of Canada's conlribution. All signage/plaques will be located in such a way as to be clearly visible to users, visitors and/or passersby; c. regularly report to the public on the outcomes of tile investrnents entered into under this Agreement, including through the Outcomes Reports described in this Agreement; d. ensure the timing of public events shall be sufficient to allow for all orders of government to plan their involvement. The P, ecipient shall provide a minimum of 21 days notice of an event or announcement; e unless othen, vise arranged, the Recipient shall pay their own costs associated with t!~eir communications activities; f receive appropriate recognition in con'~munications materials: and, g joint communications material and signage will reflect Government of Canada communications policy, including the Official Languages Act (Canada), and federal-provincial/tenitorial identity graphics guidelines. 26 SCHEDULE G INT£GRA TED COMMUNITY SUS TAINABILITY PLANS ,~,,'iLmic;'p.~Jh'tie."-, in Ontario oper?,te with a sophisticated and comprehensive statuton/and regulatc~p~' framework and are acoountable to their residents for all aspects of municipal policy 'naking, including operations and capital investment activities. Ontario has demonstrated rts leadership ~n sustainability planning through its well-established land-use planning and initiatives to protect the environment and provide safe drinking water in Ontario bfunicipa!/t,'es, through their Official Plans, under the Ontan'o P!am?i~'..g Act, strive to reflect environmental objectives which are implemented through their municipal p!ann~ng decisions, municipal capilal plans, strategic plans and sustainabitity plans. As such, Pv~mic~f:alit~es ha'.:e demonstrated their comrnitment to sustainability. The purpose of the Integrated Community Susta;'nability Plan is to enhance or build upon existing planning instruments and processes. Over the life oi this Agreement, Recipients ,,,,,ill be' required to demonstrate through existing planning instruments and processes or through the creation of new planning document that the bfunicipality has: · a co-ordinated approach to community sustainability (e.g, linkages of various plans, planning and financial tools that contribute to sustainability objectives)' · reflected and integrated social, cultural, environmental and economic sustainability objectives in community planning; · collaborated with other MunicipaNies where appropriate to achieve sustainability objectives; and, · engaged residents in determining a long-term vision for the Municipa!~ty. 27