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HomeMy WebLinkAboutAPTA 01/01 135 - ~ REPORT TO COUNCIL FROM: Ted Galinis DATE: July 30,2001 General Manager, Ajax Pickering Transit Authority REPORT NUMBER: APTA 01-01 SUBJECT: Transit Merger Agreement RECOMMENDATION: That it is recommended that report APT 01-01 of the General Manager, Ajax Pickering Transit Authority be received for information and that: 1. Council approve a By-Law as set out in Attachment No.1 attached hereto to authorize the execution of a transit system Merger Agreement as set out in Attachment No. 2 attached hereto between the Corporation of the Town of Ajax and the Corporation of the City of Pickering; 2. the appropriate staff of the City of Pickering be given the authority to give effect thereto. ORIGIN: - General Manager, Ajax Pickering Transit Authority AUTHORITY: The Municipal Act, R.S.O. 1990, as amended. Memorandum of Understanding, March 6, 2000 FINANCIAL IMPLICATIONS: The initial asset contribution differential of $178,000 has been revisited and is currently in the $248,000 range. This figure is subject to continuing discussion between the Municipalities and a final evaluation on December 31,2001. The net annual Operating Costs shall be determined in the Transit Authority's operating budget and contributed to based on the percentage of each Municipality's tax assessment base to the tax assessment base of both Municipalities as shown in the returned Assessment Roles for the Municipalities. The tax assessment base shall be based on the returned Rolls, less exempt assessment, of the preceding year. Capital costs will be shared equally, (Note: item 2.1 (a) fare collection system - exception) and assets and liabilities of the two municipalities to be transferred are set out in the attached Merger Agreement. - 1 ~ 6 Report to Council APT A 01-01 Date: July 30,2001 Subject: Transit Merger Agreement Page 2 EXECUTIVE SUMMARY: Not applicable BACKGROUND: On March 6, 2000, the Town of Ajax and the City of Pickering agreed to a Memorandum of Understanding to facilitate the creation of the Ajax Pickering Transit Authority. The Town of Ajax and City of Pickering are now prepared to formalize the terms and conditions for the legal merger of Ajax Transit, owned and operated by the Town of Ajax; and Pickering Transit, owned and operated by the City of Pickering. The terms and conditions of this Merger Agreement will form the arrangement between the parties on such issues as Boards and Committees, levels of authority, legal obligations/liabilities on the part of the two municipalities, treatment of assets, equalization payments, municipal support services, and labour relation matters. ,- For the purpose of this Agreement, the merger will take place effective September 4,2001 with the creation of a joint Board of Management. Legislation will be required to create a new entity that can actually own real property. We have had preliminary discussions with the Ministry of Municipal Affairs and with various political staff, and we are hopeful that the legislature will act favourably on a request for legislation prior to December 31 st, 2001. The Agreement will remain in effect until notice of termination is provided by either party in accordance with the terms and conditions of this Agreement. Following the effective date, the business and affairs of the Ajax Pickering Transit Authority (APTA) shall be supervised by the Board of Management. Under authority provided by the Board, the Ajax Pickering Transit Authority will commence the business of delivering a public transportation system on behalf of the Town of Ajax and the City of Pickering. The formal transfer of assets, insurance, financial services and a final inventory evaluation shall be completed and effective January 1,2002. At this time it has been agreed between the Chief Administrative Officers of the two municipalities that Ajax will provide Human Resources and payroll services and that Pickering will provide financial, accounting, budgeting, auditing, banking, internal control and corporate legal services. In order to establish the Ajax Pickering Transit Authority as a legal entity with authority to operate a public transit system for Town of Ajax and the City of Pickering and to proceed with required Legislation, it is necessary to formalize the terms and conditions of the Merger Agreement. ATTACHMENTS: 1. By-Law to execute the Merger Agreement 2. Merger Agreement - Report to Council APTA 01-01 137 Date: July 30,2001 Subject: Transit Merger Agreement Page 3 Prepared / Approved / Endorsed By: TG:vw Attachments - Copy: M. Brenner, Councillor TJ. Quinn, Chief Administrative Officer G.A. Paterson, Director, Corporate Services & Treasurer J. Reble, Solicitor B. Gajadharsingh, Division Head, Human Resources T. Melymuk, Division Head, Corporate Promotions & Policy Division N. Killens, Manager, Transit Services Recommended for the consideration of Pickering City Council m uinn, Chief Administrative Officer _. THE CORPORATION OF THE CITY OF PICKERING BY-LAW NUMBER 5873/01 Being a By-law to authorize the execution of a Transit System Merger Agreement between the Corporation of the Town of Ajax and the Corporation of the City of Pickering. WHEREAS Ajax and Pickering have agreed to a Memorandum of Understanding March 6,2000 that will facilitate the creation of the Ajax Pickering Transit Authority; AND WHEREAS Ajax and Pickering wish to enter into a Transit System Merger Agreement August 8, 2001 to remain in effect until such time as notice of termination is provided by either party in accordance with the terms and conditions of this Agreement; NOW THEREFORE, the Corporation of the City of Pickering HEREBY ENACTS AS FOLLOWS: The Mayor and Clerk are hereby authorized to execute the Merger Agreement between the Corporation of the Town of Ajax and the Corporation of the City of Pickering. By-law read a fIrst, second and third time and fInally passed this 7th day of August, 2001. - Cl"k(DePutYI~ - CER.~!,~.....; / L/ /" C. ~nn~ Green.tree, SuPervisor, Legislative ServIces and Deputy Clerk City of Pickering THIS PHOTOCOPY CONFORMS TO THE ORIGINAL DOCUMENT WHICH HAS NOT BEEN ALTERED IN ANY WAY.