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October 13, 2009
o~ Executive Committee Meeting Agenda _ Tuesday, October 13, 2009 PI KERI Council Chambers Chair: Councillor O'Connell (1) DISCLOSURE OF INTEREST (II) DELEGATIONS Paula Jesty, Deloitte & Touche LLP Director, Corporate Services & Treasurer, Report CS 38-09 2009 Year End Audit (III) MATTERS FOR CONSIDERATION PAGES 1. Director, Corporate Services & Treasurer, Report CS 38-09 1-34 2009 Year End Audit RECOMMENDATION 1. That Report CS 38-09 of the Director, Corporate Services & Treasurer be received; 2. That the Audit Plan as submitted by Deloitte & Touche LLP, included as Attachment 1 to this report be received for information; and, 3. That the Chief Administrative Officer and the Director, Corporate Services & Treasurer be authorized to sign the Auditor's Engagement Letter on behalf of the City. 2. Director, Corporate Services & Treasurer, Report CS 36-09 35-103 Clerks Division Revenue Controls Review RECOMMENDATION That Report CS 36-09 of the Director, Corporate Services & Treasurer regarding the results of the Clerks Division Revenue Controls Review be received for information. Accessible For information related to accessibility requirements please contact P I C K S N G Linda Roberts Phone: 905.420.4660 extension 2928 TTY: 905.420.1739 Email: Iroberts()citvofgickerina.com a~ Executive Committee Meeting Agenda _ Tuesday, October 13, 2009 =PIKERI Council Chambers Chair: Councillor O'Connell 3. Director, Corporate Services & Treasurer, Report 37-09 104-106 Section 357/358 of the Municipal Act - Adjustment to Taxes RECOMMENDATION 1. That Report CS 37-09 of the Director, Corporate Services & Treasurer be received; . 2. That the write-offs of taxes as provided under Section 357/358 of the Municipal Act, 2001 be approved; and, i 3. That the appropriate officials of the City of Pickering be authorized to take the necessary action to give effect hereto. 4. Director, Corporate Services & Treasurer, Report CS 39-09 107-129 Veridian Corporation - Promissory Notes Renewal RECOMMENDATION 1. That Report CS 39-09 of the Director, Corporate Services & Treasurer be received; 2. That the maturity dates on the Promissory Notes in the amount of $7,095,000 to Veridian Corporation and $17,974,000 to Veridian Connections Inc. be amended to November 1, 2012 at their face value with the existing terms and conditions with interest at 6% or the Ontario Energy Board Deemed Rate as indicated on the respective notes; 3. That a by-law in the form -included as Attachment 2 to this report providing for the approval and execution of a Note Amending Agreement be enacted; 4. That the Mayor and Clerk be authorized to execute the Note Amending Agreement on behalf of the City of Pickering in the form included as Attachment 3 to this .report; 5. That the Director, Corporate Services & Treasurer be authorized to undertake any actions including negotiations or amendments to the terms and conditions necessary in order to put the foregoing into effect; and 6. That the appropriate officials at the City of Pickering be given authority to give effect thereto. i Crq o0 Executive Committee Meeting Agenda Tuesday, October 13, 2009 PI KERI Council Chambers Chair: Councillor O'Connell 5. Director, Operations Emergency Services, Report OES 45-09 130-195 407 East Final Individual Environmental Assessment (FIEA) and Preliminary Design Study - August 2009 City of Pickering Comments RECOMMENDATION 1. That Report OES 45-09 of the Director, Operations & Emergency Services and.the Director, Planning & Development, regarding the 407 East Final Individual Environmental Assessment (FIEA) and Preliminary Design Study, August 2009, be received; 2. That Council endorses the Technically Preferred Route (TPR) consisting of the Highway 407 East Mainline and the two North-South Freeway "Links" connecting Highway 401 in West Durham and in East Durham (See Attachment 1); 3. That Council supports the transitway corridor, the locations of transitway stations and the maintenance yards within Pickering in principle, as the basis for the submission of a future separate environmental assessment; 4. That Council requests the Ontario Ministry of Transportation (MTO) to work with City staff to determine alternative strategies for the seven cultural heritage properties in Pickering proposed to be displaced in the FIEA Report (See Attachment 2); 5. That Council requests the MTO to consider a better location or retain flexibility to re-orient the proposed interchange at Westney Road to accommodate a more easterly alignment for the Greenwood By-Pass on Westney Road, should the Region of Durham's Environmental Assessment (EA) for the Greenwood By-Pass support such an alignment; 6. That, as previously requested in Report No. OES 07-09, dated January 12, 2009 (See Attachment 3), Council requests all proposed grade separations within Pickering include raised sidewalks (1.8 metre minimum width) on both sides of the roadways, and dedicated bicycle lanes (1.5 metre minimum width) on the outer lanes on both sides of the roadways at MTO expense; 7. That Council requests the MTO to install a gateway feature at Lake Ridge Road in Pickering as a component of Community Value Plan (CVP); o Executive Committee Meeting Agenda _ Tuesday, October 13, 2009 PI CKERI council chambers Chair: Councillor O'Connell 8. That Council requests MTO to relocate and replace ball diamonds, play grounds, and parking, etc. located at Don Beer Memorial Park north of Highway 407 in the Hamlet of Brougham which is being significantly impacted by the proposed alignment, and that MTO be further requested to work closely with the City of Pickering and the Federal Government to find a suitable location, all at MTO expense; 9. That Council endorses the comments and recommendations made by staff to the MTO, dated August 4, 2009 (See Attachment 4) and further requests MTO to incorporate them into the FIEA Report; .10.- That Council endorses the concerns raised by staff on the FIEA Report to the MTO in Appendix 3 of Report OES 45-09 and further requests MTO to incorporate them into the. FIEA Report; 11. That MTO revise the FIEA to take into account the data and status updates contained in Appendix 4 of Report OES 45-09; 12. That following the approval of FIEA Report, Council requests MTO to work closely, with City of Pickering staff during the subsequent design and implementation phases of the 407 easterly extension; 13. That a copy of the Report OES 45-09 be forwarded to the MTO, the 407 East EA Project Team, Region of Durham, all Durham area municipalities, and Transport Canada; and 14. Further, that the City Clerk be requested to forward Report OES 45-09 and the October 13, 2009 Executive Committee decision on this matter to Ontario Ministry of Environment (MOE) by the required deadline of October 16, 2009 and forward Council's decisions on this matter following the Council meeting of October 19, 2009 to MOE. 6. Director, Corporate Services & Treasurer, Report CS 40-09 196-245 Tender / Contract Approval - Councils' Summer Recess RECOMMENDATION i o~ Executive Committee Meeting Agenda _ Tuesday, October 13, 2009 PI CKERING Council Chambers Chair: Councillor O'Connell 1. That Report CS 40-09 of the Director, Corporate Services & Treasurer regarding tender and contract approvals during Councils' Summer Recess be received; and, 2. That Council pass a resolution ratifying the approval of the Tenders and, Contracts by the Chief Administrative Officer contained in this Report during Council's summer recess being Tender No. T-11-2009 Durham Purchasing Co-operative for the Supply and Delivery of Culvert; Tender No. T-13-2009, Supply and Delivery of Fire Rescue Equipment; Tender No. T-16-2009, Asphalt and Concrete Repairs;. Tender No. T=20-2009, Supply and Delivery of Two (2).One-Ton Dump Trucks; and Tender No. T-21-2009, Reconstruction of Luna Court. (IV) OTHER BUSINESS ` (V) ADJOURNMENT erur REPORT TO EXECUTIVE COMMITTEE PICKERMG Report Number: CS 38-09 Date: October 13,,2009 1 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: 2009 Year End Audit Recommendation: 1. That Report CS 38-09 of the Director, Corporate Services & Treasurer be received; 2. That the Audit Plan as submitted by Deloitte & Touche LLP, included as Attachment 1 to this report be received for information; and, 3. That the Chief Administrative Officer and the Director, Corporate Services & Treasurer be authorized to sign the Auditor's Engagement Letter on behalf of the city. Executive Summary: In accordance with generally accepted auditing standards the Audit Plan is prepared to communicate the auditor's approach and reporting responsibilities to the Executive Committee, who has oversight responsibility for the Financial Reporting Process. This plan is submitted. prior to the commencement of the year end audit. Financial Implications: The audit fee, for City & Library, remains unchanged at $66,900 for 2009. A separate audit of the Tangible Capital Asset 2008 opening balances is required to comply with 2009 Public Sector Accounting Board (PSAB) reporting requirements. The cost of this engagement is estimated to be approximately $20,000. Sufficient provision has been included in the 2009 Current Budget. Sustainability Implications: This report does not contain any sustainability implications. Background: In the Committee's role as the body responsible for oversight of the Financial Reporting Process, the Committee is to review the Audit Plan for the upcoming 2009 year end audit. The Audit Plan provides the scope of the audit services to be provided, the auditor's formal reporting responsibilities and an outline of the audit approach. It is included as Attachment 1 to this report. Report CS 38-09 Date: October 13, 2009 Subject: 2009 Year End Audit Page 2 0- At the Council meeting of October 10, 2006 Resolution 154/06 appointed Deloitte & Touche as the City's external auditors for a period of 5 years which would encompass the 2006 to 2010 audits inclusive. However Deloitte & Touche require an Engagement Letter be signed annually with each audit which summarizes their role as external auditor, management's responsibilities and provides the estimate of the audit fees.. The audit fee for the 2009 year end audit which includes the City and the Library remains unchanged at $66,900 which is unchanged from 2008. In addition, due to PSAB reporting requirements for Tangible Capital Assets for 2009, a separate audit of the Tangible Capital Assets 2008 opening balances is required. This engagement is expected to cost approximately $20,000 and is required to be undertaken in order to finalize the 2009 Financial Statements. The 2009 Current Budget contained a provision for this audit. Attachments: 1. Audit Plan 2. Engagement Letter Prepared By: Approved / Endorsed By: Kristi a Senior Gillis A. Paterson Manager, Accounting Services Director, Corporate Services & Treasurer GAP:ks Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council Zzg X, 6Mhief ~as n,~prb MR., MM III dm inistrative Officer ATTACHMENT TO REPORT #.LC-3 '-0 j 03 Delonte,"', The Corporation of. the City of Pickering Audit Plan. Year Ending. December 31, 2009 f, Audit.Tax, Consulting,. Financial Advisory. Deloitte & Touche LLP Dlotte 5140 Yonge Street O ^4 Suite 1700 Toronto, ON M2N 61-7 Canada Tel: (416) 601 6150 Fax: (416) 601 6151 www.deloitte.ca September 23, 2009 Private and Confidential The Members of the Executive Committee The Corporation of the City of Pickering 1 The Esplanade Pickering ON L IV 6K7 Dear Executive Committee Members: We are pleased to submit for your review our audit plan for the audit of the consolidated financial statements of. the Corporation of the City of Pickering (the "City") for the year ending December 31, 2009. The key objectives of this document are to: • Outline our services to be provided; • Outline our formal reporting responsibilities; • Outline our audit approach; • Introduce the professional resources we will employ on the audit; • Provide you with the opportunity to review our audit plan and ask any questions you might have; and • Assist you in discharging your responsibilities relative to the external audit of the City. The objective of an audit of the consolidated financial statements in accordance with Canadian generally accepted accounting standards ("GAAS") is to express an opinion on the fairness of the presentation of the consolidated financial statements in accordance with Canadian generally accepted accounting principles ("GAAP") for local governments. This audit plan is intended solely for the use of the Executive Committee, to assist you in discharging your responsibilities with respect to the consolidated financial statements and should not be used for any other purpose. Any use that a third party makes of this report is the responsibility of such third party. Yours sincerely, Chartered Accountants Licensed Public Accountants Member of Deloitte Touche Tohrriatsu Table of contents 0 5 Page Client service objectives 3 Financial reporting responsibilities 4 Communications plan. 5 The Deloitte audit approach 7 Appendices Appendix I - Audit team Appendix II - Accounting update and other developments (Public Sector) I I I © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 2 06 Client service objectives In serving you, we develop client service objectives that strive to meet the expectations of both the Executive Committee and Management. Our client service objectives for 2009 are: • Develop an audit plan for the City to fulfill all professional requirements and provide timely, value added services. • Deliver professional services to assist the Executive Committee in meeting the current requirements of Canadian Generally Accepted Accounting Principles ("GAAP") for local governments and financial reporting requirements. • Assign an audit service team specific to the City's needs. • Maintain and demonstrate our commitment to the Municipal sector. • Regularly communicate with Management so that they are fully informed of the status of our audit work and issues detected through such work on a timely basis. • Provide regular communication to the Executive Committee and Management on our findings. • Assist the Executive Committee and Management in the early identification of changing professional requirements regarding Canadian GAAP for local governments and other financial reporting requirements. • Review with the Executive Committee and Management identified areas of risk or audit focus and develop an appropriate audit response. • Proactively keep the Executive Committee and Management informed as to current business, financial and other developments, which are relevant to the City. In summary, we will provide: • Timely communications on the results of our audit work to Management and the Executive Committee; and • The statutory auditors' reports for the City (Consolidated financial statements, Trust Funds and Public Library Board). Integral to our audit plan is an understanding of the respective financial reporting roles and responsibilities of each of Management, the Executive Committee and Deloitte. These have been documented in the following section. 9 Deloitte & Touche LLP and affiliated entities. City of Pickering 2009 Audit Plan 3 07 Financial Reporting Responsibilities ' s !a/ ~Y -14 • Meet with the external • Maintain appropriate Perform a cost-effective auditors to review the controls and accurate audit in accordance with Audit Plan. financial records. Canadian generally • Meet with the external • Report financial results accepted auditing auditors to discuss the on a fair, consistent and standards. results of the audit and timely basis in • Assess accounting review the Report on the accordance with GAAP. principles and financial Results of the Audit. Select statement disclosures. . appropriate • Review and recommend accounting and • Understand key for approval, the annual disclosure policies. management control financial statements and . Maintain compliance systems and processes disclosures. with reporting and and assess risk. • Follow up on audit regulatory • Report opportunities for recommendations. requirements. improvements in control • Maintain oversight of the • Identify principal risks processes. systems of internal and establish and Express an opinion on control. maintain a cost- the fairness of • Understand, discuss and effective control presentation of the address fraud and error environment. financial statements. risks with management. . Prepare consolidated Provide industry • Oversight in managing financial statements. expertise to support the risk-based monitoring financial • Provide management audit ,risks. representations. approach. • Review external financial communications. • We believe the optimal client relationship is one in which there is an open line of communication between the Executive Committee, Management and Deloitte. • In order to achieve a balanced relationship, each party must have the opportunity to meet with each of the other two parties on a timely basis. • Commitment from, and interaction between, all three parties lead to continual improvement in the quality of the financial reporting process. © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 4 L_ oB Communications plan As external auditors to the City we are accountable to the Council. We have been engaged to perform the following statutory audits for the year ending December 31, 2009: • Consolidated financial statements of the Corporation of the City of Pickering (the "City"); • Financial Statements of the City of Pickering Public Library Board; and • Financial Statements of the City of Pickering Trust Funds. Our formal communications will include: • The audit plan; including the level of responsibility assumed in performing an audit under Canadian generally accepted auditing standards; • The Report on the results of our audit, including any management letter comments as applicable; • Our auditors' report on the consolidated financial statements;. and • Confirmation of our independence including, disclosure of any relationships that bear on our independence and reporting on all services. © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 5 09 Communications plan (continued) • We are also required to report on: - Whether there were any limitations placed on our audit scope; and any difficulties encountered during the audit; - Appropriateness of significant accounting policies and the application thereof, effect- of, significant changes in accounting policies and existence of alternative acceptable accounting policies; - Management judgments and accounting estimates; and - All significant unadjusted differences as well as significant adjustments made as a result of our findings. • Should any of the following matters be noted during the audit we will bring them to the attention of the Executive Committee: - Evidence of fraud, or possible fraud, misstatements or illegal acts; - Significant weaknesses in internal control relating to the preparation of the financial statements; - Significant or unusual transactions; - Related party transactions which are not in the normal course of operations; - Disagreements with Management; - Consultation by Management with other accountants about any significant auditing or accounting matters; - Actions that if they become public, might cause embarrassment; - Non-compliance with regulatory requirements; and - Major issues discussed with Management that influenced the audit appointment. © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 6 10 The Deloitte audit approach The Deloitte audit approach is a systematic methodology used to tailor our audit scope and audit plan specifically for the unique issues facing the City. The Deloitte audit approach has the following key attributes. It is: •Partner-led - The audit plan is driven by our partners' experience and detailed knowledge of the City's business. Significant input is obtained from the partners at all stages of the audit engagement. •Focused - We identify and design appropriate audit procedures that focus on risks associated with the City, the audit engagement, and potential errors in significant account balances or disclosures. •Interactive - We interact with the City's Management and the Executive Committee and respond to their needs and expectations. •Dynamic - We tailor our audit plan to respond to changing circumstances. Perform pre-engagement activities Perform preliminary planning Plan Develop audit plan Perform audit plan Perform Conclude and report Conclude Perform post-engagement activities These six steps are not necessarily chronological and are not mutually exclusive. For example, once the audit plan has been developed and is being performed, we may become aware of a risk that was not identified during the planning phase. Based on the new information, we will reassess our planning activities and adjust the audit plan accordingly. The Deloitte audit approach interweaves our year-round involvement, the use of specialists, and a focus on continuous communication with Management and the Executive Committee throughout the audit process. © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 7 L 11 The eli tea audit approach (contin-ued) The key elements of the audit approach are as follows: to ~ 3, ~?i~= i~3 ,_'~E-• ,91 i.: s- 1 Five Key Elements _ • Considered governance processes I='= -4 C-r Premised on understanding your =t~~ business • Focused on key risksl • Partner led, with high t a+~~ rt 4 f?, Y~ involvement and (qt"%-j specialized skills -F. • Committed to ii l- C-1 if ft ~ delivering value' • _ j 1 Materiality is an essential element of Canadian generally accepted auditing standards. In the context of financial reporting, materiality refers to the magnitude of an omission or misstatement of accounting information that, in light of the surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been influenced, or a decision changed, by the omission or misstatement. Quantitative Guidelines for Not-for-Profit Organizations. are generally .5 to 2% of total expenses or total revenues. We will base the quantitative considerations of our materiality for the consolidated financial statements of the City on 1.5% of budgeted expenditures. i i I © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 8 12 -The Deloitte audit approach (continued) Auditor's responsibility to consider fraud In response to CICA Assurance Handbook Section 5135, "The Auditor's Responsibility to Consider Fraud", we will perform audit procedures to address fraud risks. The Executive Committee should recognize that every organization has inherent fraud risks due to internal and external conditions such as size, dispersed locations, general economic conditions, nature of various operations, and the like. There are three common fraud risk factors, the existence of which can increase the likelihood that fraud could occur. These include: • pressures and incentives; • attitudes/rationalization; and • opportunity. The Executive Committee's oversight and understanding of fraud and error risks helps to ensure that Management fulfills its responsibility to facilitate a strong internal control environment to minimize fraud opportunities and can also deter Management from committing fraud. i It should be noted that the objective of the audit of the City's consolidated financial statements is to enable the auditor to express an opinion whether the consolidated financial statements present fairly, in all material respects, the financial position, results of operations and changes in financial position in accordance with Canadian generally accepted accounting principles. Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the consolidated financial statements will not be detected, even though the audit is properly planned and performed in accordance with Canadian generally accepted auditing standards. The assurance an auditor provides concerning lack of misstatements arising from fraud is necessarily lower than the assurance provided concerning those arising from error. © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 9 13 The Deloitte audit approach (continued) Areas of audit focus We have identified the following areas of focus, based on our review of prior years' files, awareness of current year activities and discussions with Management. t Year-end cut- Determine if cut-off of revenues • Focused substantive testing on accounts off and expenditures is appropriate. payable, accrued liabilities, deferred revenue and accounts receivable. • Test disbursements and cash receipts subsequent to year-end. • Test supporting assumptions for accrued, liabilities, deferred revenue and accounts receivable. Actuarially Accuracy and completeness of • Review actuarial report, including related Determined certain liabilities such as assumptions. Liabilities Workplace Safety and Insurance (°WSIB") and post-employment • Ensure appropriate accounting treatment has benefits. been applied. • Review related financial statement note disclosure for accuracy and completeness. • Communicate with actuary on our reliance on their report for audit purposes. Reserves and . Approval of transfers to and from • Substantive testing of the continuity and of Reserve Funds reserves and reserve funds. material transactions to determine if transfers are in accordance with Council approvals and/or legislative requirements. Capital Fund • Revenue Recognition. Substantive testing to ensure restricted contributions (i.e. development charges, gas • Capital expenditures- year end tax, conditional grants) have been cut-off. recognized as revenue in the appropriate period. • Substantive testing to ensure appropriate accruals for capital expenditures incurred before the year-end. © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 10 14 The ®eloitte audit approach (continued) Areas of audit focus (continued) • Compliance with PS3070 • Review accounting for Investment in "Investment in Government Veridian Corporation and related disclosures. Investment Business Enterprise". • Review financial statements of Veridian in Veridian Corporation. Corporation • Communication with Veridian Corporation's auditor on our reliance on their auditor's report for purposes of the City's audit. Management Estimates require management • Focused review of calculations and support. estimates judgment (i.e. allowance for • Discussion with Management. significant property tax appeals, • Analytic review of related accounts. contingent liabilities, etc.) . Public Sector Impact of the new local • Review of significant accounting policies, Accounting government reporting model implementation of new standards and any Standards including the implementation of unusual transactions. tangible capital assets • Work with City staff to determine if accounting. appropriate plans are in place to enable compliance with the new standards. Tangible Appropriate accounting and Review of assumptions used in determining capital disclosure. opening balances. assets Reasonable procedures for Substantive testing of tangible capital asset legacy data collection. balances. • Review of calculations of accumulated amortization. i © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 11 i 15 Appendix I Audit team Paula Jesty AUdit Engagement Partner Pina Colavecchia Doug Wilkinson Computer Assurance Partner Audit Senior Manager Tabish Gill Lilian Cheung Computer Assurance Manager Audit Senio- Audit Assistants © Deloitte & Touche.LLP and affiliated entities. City of Pickering - 2009 Audit Plan 12 16 Appendix II - Accounting update and other developments (Public sector) The information included in this appendix was obtained primarily from the CICA Public Sector Accounting Board (PSAB) Web site (http://psab-ccsp.ca). L Transitional From fiscal years beginning This Section was amended to add transitional provisions that provisions to on or after April 1, 2005 until allow a government, in limited cases, to choose to record the Government fiscal years beginning on or newly included government organizations in the financial Reporting Entity, after April 1, 2009. statements on a modified equity basis, rather than fully Section PS 1300 consolidating, from the date of initial application until fiscal years beginning on or after April 1, 2009. For fiscal years beginning on or after April 1, 2009, the government will be required to fully consolidate these government organizations, in accordance with paragraph PS 1300.27. This change will not impact the City. Tangible Capital Currently effective for federal, The revisions to Section PS 3150, Tangible Capital Assets, Assets, Section provincial and territorial focus primarily on local governments recognizing and PS 3150 governments and will be amortizing all their tangible capital assets. They are effective for local applicable for fiscal years beginning on or after January 1, . governments for fiscal years 2009. beginning on or after The implementation of this new standard will have significant January 1, 2009. impact on the City's consolidated financial statements for the year ending December 31, 2009. © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 13 L 17 Appendix II Accounting update and other developments (Public Sector) (continued) i Financial Currently effective for federal, In November 2006, after extensive consultation with'the local Statement provincial and territorial government community and with only minor amendments to the concepts, governments and effective existing standards for senior governments, the Public Sector Amendment - for local governments for Accounting Board (PSAB) approved revised Sections PS 1000, Section PS 1000 fiscal years beginning on or Financial Statement Concepts, PS 1100, Financial Statement Financial after January 1, 2009. Objectives, and PS 1200, Financial Statement Presentation, a Statement single conceptual framework and reporting model for all levels of government in Canada. The revisions focus primarily on local Objectives, governments applying the same reporting model currently Amendment adopted by senior governments for fiscal years beginning on or Section PS 11 100 after January 1, 2009. Beginning on or after January 1, 2009, all Financial governments in Canada will be reporting on a full-accrual basis Statement of accounting. PS 1700 and PS 1800 for local governments Presentation, required a modified accrual basis of accounting, and as such, Amendment - these Sections will be withdrawn. Section PS 1200 This new reporting model will be effective for the fiscal year ending December 31, 2009 and along with the implementation of Section 3150 - Tangible Capital Assets as previously discussed, will result in significant changes to the financial statement ' presentation for 2009 and for the comparative figures for 2008. I © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 14 Appendix II - Accounting update and other developments (Public Sector) (continued) Government Proposed for transfers This project was started to develop amendments to Section PS Transfers recognized on or after April 1, 3410, Government Transfers, to address application and 2011. interpretation issues raised by the government community. The major issues in the project include: • Resolving the debate over the appropriate accounting for multi-year funding provided by governments; ■ Clarifying the nature and extent of the authorization needed to be in place for a transfer to be recognized; ■ Clarifying the degree to which stipulations imposed by a transferring government should impact the timing of recognition of the transfer by both the transferor and recipient governments; and ■ Addressing the appropriate accounting for capital transfers received under an expense-bases accounting regime. In March 2008, PSAB discussed the responses received on the first Re-Exposure Draft issued in April 2007. The first Re- Exposure Draft proposed a different approach to recipient accounting for transfers. It describes when a recipient government would recognize a liability for a transfer. The proposed approach considers the views of the majority of respondents to the ED, builds on the transfers' principles in IPSAS 23 and incorporates elements from the two previous PSAB Associates' Drafts. A second Re-Exposure Draft (Re-ED) was issued and the comment period ends September 15, 2009. The Re-ED proposes that subsequent actions of a recipient can give rise to a liability and it also introduces the concept of recording capital grants/contributions as a deferred capital contribution on the statement of financial position and amortizing them into income on the same basis as the related capital asset is amortized. This standard is being closely monitored by the joint AMCTO/MFOA workgroup as it will have a significant impact on the City's budgeting processes and financial reporting. © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan is L 19 Appendix II - Accounting update and other developments (Public Sector) (continued) Financial Proposed for fiscal years The Exposure Draft was approved in June 2009. The main Instruments beginning on or after April 1, features include: 2012. ■ Fair value measurement is required for derivatives and portfolio investments that are equity instruments quoted in an active market. • A government can choose to report non-derivative financial assets and/or financial liabilities on a fair value basis if it manages and reports performance of these items on a fair value basis. ■ A change in the fair value of a financial instrument should be presented in the statement of operations as a re-measurement gain and loss. ■ Revenues other than re-measurement gains and expenses other than re-measurement losses should be separately presented in the statement of operations. ■ The statement of operations should report the measure of surplus/deficit excluding re-measurement gains and losses for the period separately from the measure of surplus/deficit for the period, which includes re-measurement gains and losses. ■ A government should disclose information that enables users of financial statement to evaluate the nature and extent of risks arising from financial instruments to which it is exposed at the reporting date. ■ The proposed standard will be effective for fiscal years beginning on or after April 1, 2012. Early adoption is encouraged. Any adjustment to the carrying amount of applicable assets and liabilities at the beginning of the fiscal year the standard is initially applied should be recognized as an adjustment to the accumulated surplus/deficit at that date. This Exposure Draft should continue to be monitored as a financial instrument standard will impact the City's consolidated financial statements. © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 16 i i 20 Appendix II - Accounting update and other developments (Public Sector) (continued) Tax Revenue Proposed for fiscal years PSAB proposes, to issue a new TAX REVENUE, Section (formerly beginning on or after January PS 3510. The new Section would apply to all levels of Revenue) 1, 2012. governments. The main features of this Re-exposure Draft (Re-ED) are as follows: • Taxes are to be recognized as. an asset and revenue when they meet the definition of an asset, they are authorized (a defined concept) and the taxable event occurs. • Tax revenue would be recognized by the government that imposes the tax except in purely flow-through arrangements. • A tax is considered authorized when the effective date of the tax has passed and the earlier of the following has occurred: the related legislation, regulations or by-laws have been approved, or, in the case of jurisdictions where the legal framework allows it, the ability to assess and collect tax has been provided through legislative convention. • An asset acquired through a tax transaction is to be measured initially at its realizable value. • Tax revenue should not be reduced by transfers made through a tax system. • Tax revenue should not be grossed up for the amount of tax concessions (which are often referred to as tax expenditures). • Guidance for identifying and distinguishing between tax concessions and transfers made though a tax system is provided. The impact of this Re-ED should continue to be monitored. I © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 17 21 Appendix. II - Accounting update and other developments (Public Sector) (continued) Introduction to the Proposed for fiscal years PSAB approved an Exposure Draft (ED) for comment. The ED . Public Sector beginning on or after January confirms the direction previously provided to government Accounting 1, 2011. business enterprises to adhere to the standards for publicly Handbook accountable enterprises in the private sector (i.e., International Financial Reporting Standards (IFRSs)) for fiscal periods starting on or after January 1, 2011. The ED also proposes to eliminate the category. "government business-type organizations" (GBTOs). It proposes that GBTOs be recategorized as either government not-for-profit organization or other government organizations (OGOs), and follow the direction of the Introduction regarding the appropriate source of GAAP. While OGOs would generally base their financial reporting on the PSA Handbook, the ED proposes certain factors that must be considered for determining when IFRSs may be more suitable. The ED was released in July 2009 with a comment date of August 7, 2009. PSAB is currently reviewing responses. This change'should not have a significant impact on the City. © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 18 22 .Appendix II Accounting update and other developments (Public Sector) (continued) E. A Introduction to N/A PSAB approved revisions to the "Introduction to Statements of Statements of Recommended Practice". It reviewed several suggestions for Recommended changing the name of SORPs and concluded that the Practice alternatives did not sufficiently reflect the nature of SORP's. Revisions to the Introduction make it abundantly clear that SORPs do not constitute GAAP and that they are intended to provide general guidance but are not mandatory or prescriptive. Assessment of N/A The main features of this SORP are as follows: Tangible Capital Assets A government can choose to report only on individual, specific categories or groups of tangible capital assets. ■ Reporting on the physical condition of tangible capital assets is information that does not necessarily have to accompany the financial statements. It could be included in a standalone report or in other public reports such as a budget document. ■ Information should, at a minimum, include the overall average physical condition rating, average age and useful life and the nature and extent of tangible capital assets in each category. ■ Narrative information would include discussion of trends in changes in the physical condition and identify the basis of measurement and measurement scale used to assess and report on the physical condition of tangible capital assets. This was approved in September 2008. Indicators of N/A In March 2009, PSAB approved a SORP on "Indicators of Government Financial Condition". The SORP provides a framework of Financial elements of financial condition and proposes, but does not Condition require a core set of indicators for each element. I © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 19 23 Appendix II - Accounting update and other developments (Public sector) (continued) Entity-level A statement of Principles (SOP) has been approved for Financial comment and addresses specific areas related to the general Statements purpose financial statements of other government organizations (OGOs). This SOP should not impact the City. Liability for The main features of this proposed Statement of Principles are Remediation and as follows: Mitigation of A government or government organization has a liability when Contaminated either the entity is directly responsible or accepts Sites responsibility, and the contamination in question exceeds an authoritative environmental. ■ Voluntary compliance with a non-authoritative policy or guidelines would not create a liability under this SOP. ■ Liabilities would be measured using a discounted cash flow approach that would be reviewed at each reporting date. ■ The measurement of the liability can include recoveries when it is likely that the recovery will be realized. Each principle is stated, together with supporting commentary, to assist readers in understanding how each issue was evaluated. Comment period ended on June 15, 2009. © Deloitte & Touche LLP and affiliated entities. City of Pickering - 2009 Audit Plan 20 .24 Del oitte ATTACHMENT#.,~-TO REPORT -7 0 ■ Deloitte & Touche LLP 25 5140 Yong uite 1700e Street Deloitte., S Toronto ON M2N 61-7 Canada Tel : 416-601-6150 Fax: 416-601-6610 www.deloitte.ca September 23, 2009 Mr. Thomas Quinn Chief Administrative Officer The Corporation of the City of Pickering 1 The Esplanade Pickering, ON L1V 6K7 Mr. Gillis Paterson Director, Corporate Services and Treasurer The Corporation of the City of Pickering 1 The Esplanade Pickering, ON L 1 V 6K7 Dear Mr. Quinn and Mr. Paterson: Deloitte & Touche LLP ("Deloitte" or "we" or "us") is pleased to serve as your auditors for the year ending December 31, 2009. Ms. Paula Jesty will be responsible for the services that we perform for The Corporation of the City of Pickering (the "City"). She will, as considered necessary, call upon other individuals with specialized knowledge, either in this office or elsewhere in our firm to assist in the performance of our services. In addition to the financial statement audit we are engaged to provide under this engagement letter, we would also be pleased to assist the City on issues as they arise throughout the year. Hence, we hope that you will call Ms. Paula Jesty whenever you believe Deloitte can be of assistance. We will perform this engagement subject to the terms and conditions set forth herein and in the accompanying appendices. Audit of financial statements Our engagement is to perform an audit of the City's consolidated financial statements for the year ending December 31, 2009 in accordance with Canadian generally accepted auditing standards ("Canadian GAAS"). In addition, we will perform a financial statement audit of the City of Pickering Public Library Board and of the City of Pickering Trust Funds. The objective of a financial statement audit conducted in accordance with Canadian GAAS is to express an opinion on the fairness of the presentation, in all . material respects, of the City's financial statements for the year ended December 31, 2009 in accordance with Canadian generally accepted accounting principles ("Canadian GAAP"). Appendix A contains a description of a financial statement audit in accordance with Canadian GARS. The Corporation of the City of Pickering September 23, 2009 Page 2 Our ability to express an opinion and the wording of our opinion will, of course, be dependent on the facts and circumstances at the date of our report. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or decline to issue a report as a result of this engagement. If we are unable to complete our audit or if our auditors' report requires modification, the reasons therefore will be discussed with the Executive Committee and the City's management. Management's responsibilities Appendix B describes management's responsibilities for (1) the financial statements and the effectiveness of internal control over financial reporting, (2) the representation letter, (3) independence matters as a result of restrictions on providing certain services, (4) independence matters relating to hiring, and (5) fraud and error. Auditor communications with those having oversight responsibility for the financial reporting process In accordance with Canadian GAAS, we are required to communicate with those having oversight responsibility for the financial reporting process about various matters in connection with our audit. Appendix C describes such communications. Inclusion of Deloitte reports in documents and public oral statements or references to Deloitte in other documents and on electronic sites If the City intends to publish or otherwise reproduce in any document our report on the City's financial statements, or otherwise make reference to Deloitte in a document that contains other information in addition to the audited financial statements, thereby associating Deloitte with such document, the City agrees that its management will provide Deloitte with a draft of the document to read and obtain our written consent for the inclusion or incorporation by. reference of our report, or the reference to Deloitte, in such document before the document is printed and distributed. No other form of document is to be considered to signify our consent. The inclusion or incorporation by reference of our report in any such document would constitute the re-issuance of our report. Management agrees to provide adequate notice of the preparation of any such public documents. The City also agrees that it will notify us and obtain our written approval prior to including our report or financial statements with which we are associated on an electronic site. Further, it is agreed that in any electronic distribution, for example on the City's web site, management is solely responsible for the accurate and complete reproduction of out report and the subject matter on which we reported. This engagement letter, and our agreement to perform the services described in this engagement letter does not constitute our consent to the use of our report in, or our agreement to be associated with any such documents published or reproduced by or on behalf of the City. Any request by the City to re-issue our report, to consent to its inclusion or incorporation by reference in an offering or other document, or to agree to its inclusion on an electronic site, will be considered based on the facts and circumstances existing at the time of such request. The estimated fees outlined herein do not include any services that would need to be performed in connection with any such required services; fees for such services (and their scope) would be subject to our mutual agreement at such time and would be described in a separate engagement letter. I~ The Corporation of the City of Pickering 27 September 23, 2009 Page 3 Fees We estimate that our total fees for this audit will be as follows, plus applicable taxes (such as Goods and Services Tax): The Corporation of the City of Pickering (including Trust Funds) $61,500 Pickering Public Library Board $5,400 Appendix D includes circumstances affecting timing and fee estimates. Other matters This engagement letter, including the appendices'A through E attached hereto and made a part hereof, constitutes the entire agreement between the parties with respect to this engagement and supersedes all other prior and contemporaneous agreements or understandings between the parties, whether written or oral, relating to this engagement. This engagement contract will continue in force for subsequent audits unless amended by the mutual consent of ourselves and the City. If the above terms are acceptable and the services described are in accordance with your understanding, please sign the copy of this engagement letter in the space provided and return it to us.' Yours truly, LLId Chartered Accountants Licensed Public Accountants Enclosure The services and terms set forth in this contract are accepted and agreed to by The Corporation of the City- of Pickering: Signature Title Date 28 Appendix A Description of a financial statement audit in accordance with Canadian GRAS The Corporation of the City of Pickering December 31, 2009 Components of a financial statement audit A financial statement audit includes the following: • Obtaining an understanding of the entity and its environment, including internal control, sufficient to identify and assess the risks of material misstatements of the financial statements, and sufficient to design and perform further audit procedures. This understanding is not sufficient for, and should not be relied upon for, any other purpose; • Examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; • Inquiring directly of those responsible for oversight of the financial reporting process regarding their views about the risk of fraud and whether they have knowledge of any fraud or suspected fraud affecting the City; • Assessing the accounting principles used and significant estimates made by management; and • Evaluating the overall financial statement presentation. Reasonable assurance We will plan and perform the audit to obtain reasonable assurance about whether the financial statements present fairly, in all material respects, the financial position, results of operations and changes in financial position in accordance with Canadian GAAP. Accordingly, we will design our audit to provide reasonable, but not absolute, assurance of detecting material misstatements whether caused by error or fraud. It is important to recognize that there are inherent limitations in the auditing process. Material misstatements, if they exist, may not be detected because of factors such as the use of judgment, the concept of selective testing of the data underlying the financial statements, and the persuasive rather than conclusive nature of much of the evidence. Because of the nature of fraud, including attempts at concealment through collusion and forgery, an audit designed and executed in accordance with Canadian GAAS may not detect a material fraud. Furthermore, while effective internal control reduces the likelihood that misstatements will occur and remain undetected, it does not eliminate that possibility. For these reasons we cannot guarantee that fraud, error or other illegal acts, if present, will be detected. Internal control over financial reporting We obtain an understanding of internal control relevant to the audit however, not all controls are relevant to every audit. We evaluate the design of controls relevant to the audit and determine whether they have been implemented. We are not, however, required to determine whether relevant controls are operating effectively. Although it is not required by generally accepted auditing standards, we may decide that for a particular engagement, it makes sense to rely on the effective operation of some controls in determining the substantive procedures we will perform. In this case, we would go beyond evaluating the design of relevant controls and determining whether they have been implemented, to also test whether the controls on which we intend to rely are operating effectively. Accordingly, while generally accepted auditing standards require us to report to the Executive Committee any significant weaknesses that have come to our attention, we may not be aware of all material weaknesses in internal control that do, in fact, exist. While we are not obligated to report other control matters coming to our attention we will endeavour to report to management, and if requested the Executive Committee, other control deficiencies that we believe may be of interest to management. L 29 Appendix B Management's responsibilities The Corporation of the City of Pickering December 31, 2009 Financial statements and the effectiveness of internal control over financial reporting The preparation and overall accuracy of the financial statements and their conformity with Canadian GAAP is the responsibility of the City's management. In this regard, management has the responsibility for, among other things: 1. Establishing and maintaining effective internal control over financial reporting and informing Deloitte of weaknesses identified in the design or operation of internal control over financial reporting; 2. Informing Deloitte of any changes in the City's internal control over financial reporting that occurred during the current fiscal year that have materially affected, or are reasonably likely to materially affect, the City's internal control over financial reporting; 3. Identifying and ensuring that the City complies with the laws and regulations applicable to its activities and informing us of any known material violations of such laws or regulations; 4. Adjusting the financial statements to correct material misstatements; 5. Safeguarding assets; and 6. Making available to us complete information relating to the engagement including, but not limited to, all financial records and related data including information on the recognition, measurement and disclosure of specific items, and copies of all minutes of meetings of council, and committees of council. Representation letter We will make specific inquiries of the City's management about the representations embodied in the financial statements and internal control over financial reporting. As part of our audit procedures, we will request that management provide us with a representation letter acknowledging management's responsibility for the preparation of the financial statements and affirming management's belief that the effects of any uncorrected financial statement misstatements aggregated by us during the current audit engagement and pertaining to the. latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. We will request that management confirm certain significant representations made to us during our audit on matters that are: I 1. Directly related to items that are material, either individually or in the aggregate, to the financial statements; 2. Not directly related to items that are material to the financial statements but are significant, either individually or in the aggregate, to the engagement; and 3. Relevant to management's judgments or estimates that are material, either individually or in the aggregate, to the financial statements. The responses to inquiries and related written representations of management required by Canadian GAAS are part of the evidential matter that we will rely on as auditors in forming our opinion on the City's financial statements. Independence matters For purposes of the following two paragraphs, "Deloitte" shall mean Deloitte & Touche LLP, Deloitte Touche Tohmatsu, its member firms and the affiliates of Deloitte & Touche LLP, Deloitte Touche Tohmatsu and its member firms. Appendix B Independence'matters as a result of restrictions on providing certain services In connection with our engagement, Deloitte, management, and the Executive Committee will assume certain roles and responsibilities in an effort to assist'Deloitte in maintaining independence and ensuring compliance with Canadian independence rules. Deloitte will communicate to its partners and employees that the City is an attest client. Management of the City will ensure that the City, together with its boards and other entities that comprise the City for purposes of the consolidated financial statements, has policies and,procedures in place for the purpose of ensuring that neither the City nor any such board or other entity will act to engage Deloitte or accept from Deloitte any service that either has not been subjected to any pre-approval process, as applicable, or that under Canadian independence rules or other applicable rules would impair Deloitte's independence. All potential services are to be discussed with Ms. Paula Jesty. Independence matters relating to hiring Deloitte must assess threats to independence created when a former Deloitte partner or member of the engagement team is employed by management. In order to assist Deloitte in maintaining independence, management should notify Ms. Paula Jesty where substantive employment conversations have been had with a former or current Deloitte partner or engagement team member. Fraud and error Management is responsible for: 1. Designing and implementing programs and controls to prevent and detect fraud and error; 2. Informing us about all known or suspected fraud affecting the City involving (a) management, (b) employees who have significant roles in internal control, and (c) others where the fraud could have a material effect on the financial statements; 3. Informing us of its knowledge of any allegations of fraud or suspected fraud affecting the City received in communications from employees, former employees, analysts, or others; 4. Informing us of any information it might have regarding any concerns or allegations of potential errors in the selection of accounting policies or the recording of transactions affecting the City that have been communicated to it by employees, former employees, analysts, or others, whether written or oral; 5. Informing us of its assessment of the risk that the financial statements may be materially misstated as a result of fraud; and 6. Communicating its belief that the effects of any uncorrected financial statem6nt misstatements aggregated during the audit are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. ~ _ i 31 Appendix C Auditor communications The Corporation of the City of Pickering December 31, 2009 Independence communications In accordance with Canadian GRAS, we will disclose to the Executive Committee, in writing, all relationships between Deloitte and the City and its related entities, that in our professional judgment may reasonably be thought to bear on our independence and confirm to the Executive Committee in such letter whether, in our professional judgment, we are independent of the City within the meaning of the Rules of Professional Conduct of our profession. For purposes of this paragraph, "Deloitte" shall mean Deloitte & Touche LLP, Deloitte Touche Tohmatsu, its member firms and the affiliates of Deloitte & Touche LLP, Deloitte Touche Tohmatsu and its member firms. Fraud, error and illegal acts If items of the following nature come to our attention, and in our judgment need to be reported to those charged with governance, we will report them directly to the Executive Committee: 1. Any fraud that involves management; 2. Any fraud (whether caused by management or other employees) of which we become aware that has resulted or could result in a non-trivial misstatement of the financial statements; 3. Any fraud involving employees who have significant roles in internal control; 4. Uncorrected misstatements aggregated by us during the audit that were determined by management to be immaterial, both individually and in the aggregate, to the financial statements taken as a whole; 5. Questions regarding the honesty and integrity of management; 6. Matters that may cause future financial statements to be materially misstated; 7. Significant misstatements resulting from error that were corrected by management; 8. Significant weaknesses in internal control; and 9. Related party transactions that are not in the normal course of operations and which involve significant judgments made by management concerning measurement or disclosure. We will inform the appropriate level of management of the City and determine that the Executive Committee is adequately informed with respect to illegal acts that have been detected or have otherwise come to our attention in the course of our audit, unless the illegal acts are clearly inconsequential. We will inform the appropriate level of management where we have identified a misstatement resulting from an error, other than a trivial error. The matters communicated will be those that we identify during the course of our audit. Our audit would not identify all matters that may be of interest to management in discharging its responsibilities. Communication with the appropriate level of authority in the organization's management and with those charged with governance will be determined by the type and significance of the matter to be communicated. I 32 Appendix D Circumstances affecting timing and fee estimate The Corporation of the City of Pickering December 31, 2009 The fees quoted for the audit are based on certain assumptions. Circumstances may arise during the engagement that may significantly affect the targeted completion dates and our fee estimate. As a result, additional fees may be necessary. Such circumstances include, but are not limited to, the following: Audit facilitation 1. Changes to the timing of the engagement at the City's request. Changes to the timing of the engagement usually require reassignment of personnel used by Deloitte in the performance of services hereunder. However, because it is often difficult to reassign individuals to other engagements, Deloitte may incur significant unanticipated costs. 2. All audit schedules are not (a) provided by the City on the date requested, (b) completed in a format acceptable to Deloitte, (c) mathematically correct, or (d) in agreement with the appropriate City records (e.g., general ledger accounts). Deloitte will provide the City with a separate listing of required schedules, information requests, and the dates such items are needed. 3. Significant delays in responding to our requests for information such as reconciling variances or providing requested supporting documentation (e.g., invoices, contracts, and other documents). 4. Deterioration in the quality of the City's accounting records during the current year engagement in comparison with the prior-year engagement. 5. A completed trial balance, referenced to the supporting analyses, schedules and financial statements, is not provided timely by the City. 6. Draft financial statements with appropriate supporting documentation are not prepared accurately and timely by the City's personnel. 7. Electronic files in an appropriate format and containing the information requested are not provided by the City on the date requested for our use in performing file interrogation. Deloitte will provide the City with a separate listing of the required files and the dates the files are needed. 8. The engagement team, while performing work on the City's premises, is not provided with access to the Internet via the City's existing network for purposes of conducting the engagement. Significant issues or changes 9. Significant weaknesses are identified in the City's internal control that result in the expansion of our audit procedures. 10. A significant level of proposed audit adjustments is identified during our audit. 11. A significant number of drafts of the financial statements are submitted for our review or we identify a significant level of deficiencies in the draft financial statements. 12. Significant new issues or changes arise as follows: a. New accounting issues. b. Changes in accounting policies or practices from those used in prior years. c. Events or transactions not contemplated in our budgets. d. Changes in the City's financial reporting process or IT systems. e. Changes in the City's accounting personnel, their responsibilities, or their availability. £ Changes in auditing standards. g. Change in the City's use of specialists, or the specialists and / or their work product does not meet the qualifications required by Canadian GAAS for our reliance upon their work. 13. Changes in audit scope caused by events that are beyond our. control. I 33 Appendix E Standard terms and conditions The Corporation of the City of Pickering December 31, 2009 The following general business terms (the "Terms") apply to the engagement except as otherwise provided in the specific engagement letter agreement (the "engagement letter") between Deloitte & Touche LLP ("Deloitte") and The Corporation of the City of Pickering (the "Client") to which these Terms are attached. 1. Timely performance - Deloitte will not be liable for failures or delays in performance that arise from causes beyond Deloitte's control, including the untimely performance by the Client of its obligations as set out in the engagement letter. 2. Right to terminate services - If the Client terminates the engagement or requests that Deloitte resign from the engagement prior to its completion, the Client will pay for time and expenses incurred by Deloitte up to the termination or resignation date together with reasonable time and expenses incurred to bring the services to a close in a prompt and orderly manner. Deloitte will not be responsible for any loss, cost or expense resulting from such termination or resignation. Should the Client not fulfill its obligations set out herein or in the engagement letter, and in the absence of rectification by the Client within thirty (30) days of notification in writing by Deloitte, upon written notification Deloitte may terminate its services immediately and will not be responsible for any loss, cost or expense resulting from such early termination. 3. Fees and taxes - Any fee estimates take into account the agreed-upon level of preparation and assistance from Client personnel. Deloitte undertakes to advise management of the Client on a timely basis should this preparation and assistance not be provided or should any other circumstances arise which cause actual time to exceed that estimate. The Client is responsible for the payment of any applicable federal, provincial or other goods and services or sales taxes, or any other taxes or duties, in connection with the services provided by Deloitte. 4. Expenses - In addition to professional fees, the Client will reimburse Deloitte for its reasonable out- of-pocket expenses including travel, meals and hotels incurred in connection with this engagement. 5. Billing - Invoices will be rendered periodically as agreed in advance. All invoices shall be due and payable when rendered. Interest shall be calculated at a simple daily rate of 0.0493% (equivalent to 18% per annum). Interest shall be charged and payable at this rate on any part of an invoice which remains unpaid from thirty (30) days after the invoice date to the date on which the outstanding invoice is paid. 6. Governing law - The engagement will be governed by the laws of the Province where Deloitte's principal office performing the engagement is located and all disputes related to the engagement shall be subject to the exclusive jurisdiction of the courts of such Province. 34 Appendix E 7. Working papers - All working papers, files and other internal materials created or produced by Deloitte related to the engagement are the property of Deloitte. In the event that Deloitte is requested by the Client or required by subpoena or other legal process to produce its files related to this engagement in proceedings to which Deloitte is not a party, the Client will reimburse Deloitte for its professional time and expenses, including legal fees, incurred in dealing with such matters. Deloitte will not return or provide records or information obtained in the course of the engagement to the Client if it is illegal to do so or if Deloitte is requested to withhold the records or information by law enforcement or other public or regulatory authorities (regardless of whether the engagement has been terminated). 8. Privacy - Deloitte and the Client acknowledge and agree that Deloitte may collect information about identifiable individuals for the purposes of this engagement ("Personal Information"), whether from the individual directly, the Client or third parties. The Client and Deloitte agree that Deloitte will collect, use and disclose Personal Information solely for purposes related to completing this engagement, providing services to the Client, and in a manner consistent with section 10 below. 9. Third parties - Deloitte's engagement is not planned or conducted in contemplation of or for the purpose of reliance by any third party (other than the Client and any party to whom Deloitte's audit report is addressed) or with respect to any specific transaction. Therefore, items of possible interest to a third party will not be addressed and matters may exist that would be assessed differently by a third party, possibly in connection with a specific transaction. 10. Confidentiality - To the extent that, in connection with this engagement, Deloitte comes into possession of Personal Information or any proprietary or confidential information of the Client, Deloitte will not disclose such information to any third party without the Client's consent, except: (a) as may be required or permitted by legal authority, the rules of professional conduct/code of ethics. (b) to the extent that such information shall have otherwise become publicly available. Except as instructed otherwise in writing, each party may assume that the other approves of properly addressed fax, e-mail (including e-mail exchanged via internet media) and voice mail communication of both sensitive and non-sensitive information and other communications concerning this engagement, as well as other means of communication used or accepted by the other. 11. Survival of terms - The agreements and undertakings of the Client contained in the engagement letter, together with the appendices to the engagement letter including these Terms, will survive the completion or termination of this engagement. 12. Proportionate liability - The Client and Deloitte acknowledge where the audit is conducted pursuant to a statute governing the Client that contains proportionate liability provisions that apply to an auditor, such as the Canada Business Corporations Act, the terms of the statute shall apply to this engagement. In the event that the Client and Deloitte are not subject to such statutory provisions regarding proportionate liability, the Client agrees that in any action, claim, loss or damage arising out of the engagement, Deloitte's liability will be several and not joint and several and the Client may only claim payment from Deloitte of Deloitte's proportionate share of the total liability based on the degree of fault of Deloitte as finally determined by a court of competent jurisdiction. 13. Client misrepresentation - Deloitte shall not be liable to the. Client, and the Client releases Deloitte, for all liabilities, claims, damages, costs, charges and expenses incurred or suffered by the Client related to or in any way associated with the engagement that arise from or are based on any deliberate misstatement or omission in any material information or representation provided by or approved by any member of management of the Client, officer of the Client or member of the Council of the Client. City REPORT TO EXECUTIVE COMMITTEE PICKERING Report Number: CS 36-09 Date: October 13,.2009 35 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Clerks Division Revenue Controls Review File: F-6010 Recommendation: That Report CS 36-09 of the Director, Corporate Services & Treasurer regarding the results of the Clerks Division Revenue Controls Review be received for information. Executive Summary: The 2006-2008 Internal Audit Work Plan included a review of the Clerks Division's revenue controls. Attached is a copy of Internal Audit's final report, including an Executive Summary, which provides the results of the review. Clerks Division management's response, in the form of an action plan, together with the report recommendations, can be found in Appendix 1 of Internal Audit's report. Financial Implications: There are no financial implications associated with this report. Sustainability Implications: There are no sustainability implications associated with this report. Background: On May 11, 2009, the Executive Committee received the 2009 - 2011 Internal Audit Work Plan for information. The plan provided a summary and brief description of the audits to be undertaken for the next three years. An update on Internal Audit's activities was also provided at the May 11, 2009 Executive Committee meeting. The 2006-2008 Internal Audit Work Plan included a review of the Clerks Division's revenue controls. This review has been completed and the final report is attached for your information. Clerks Division management is in general agreement with Internal Audit's observations and recommendations. Their response, in the form of an action plan, together with the report recommendations, can be found in Appendix 1 of the report. Report CS 36-09 October 13, 2009 Subject: Clerks Division Revenue Controls Review Page 2 In accordance with the 2009 - 2011 Internal Audit Work Plan, Internal Audit is currently performing a review of the Operations Centre, the results of which will be reported to senior management and the Executive Committee once the review is completed. Attachments: 1. Clerks Division Revenue Controls Review Prepared By: Approved/Endorsed By: James Halsall Gillis A. Paterson Manager, Internal Audit & Control Director, Corporate Services & Treasurer JH:jh Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Co cil Tho as . Quinn, RD CM C ief Administrative O ~1, cer ATTACHMENT#TO REPORT #.LS 34-01 CITY OF PICKERING 37 Clerks Division Revenue Controls Review Final Report Internal Audit Corporate Services Department August 2009 TABLE OF CONTENTS 38 EXECUTIVE SUMMARY ..........................................................................................4 INTRODUCTION/BACKGROUND 7 SCOPE AND OBJECTIVES ....................................................................................8 REVIEW RESULTS .................................................................................................9 1.0 GENERAL OBSERVATIONS ......................................................................9 1.1 Clerks Division Standard Operating Procedures 9 1.2 Document Retention By-law ...........................................................9 1.3 Controls over Cheques Received in the Mail ................................10 2.0 PROTECTION OF PERSONAL INFORMATION ......................................11 2.1 User Access to City's IT Network ..............................................11 2.2 Physical Security over Clerks Division's Records .........................11 3.0 PROCESSING OF PARKING TICKETS ...................................................12 3.1 User Access to Parking Ticket Databases ....................................13 3.2 Manual Ticket Books Inventory ....................................................14 3.3 Ticket Processor Data-entry Controls ...........................................14 . 3.4 Parking Ticket Cancellations ........................................................15 3.5 Parkin Ticket Collections 16 I 4.0 FIRST ATTENDANCE PARKING TAG REVIEWS ....................................17 4.1 Management Oversight ................................................................17 5.0 LICENCE AND PERMIT REVENUES .......................................................18 5.1 Budget Monitoring and General Ledger Reconciliations ..............19 5.2 Recording and Tracking of Licences Issued .................................19 5.3 Licence and Permit Payments ......................................................20 6.0 LOTTERY LICENCES ...............................................................................21 6.1 Lottery Licence Forms Inventory 21 6.2 Lottery Licences Database ...........................................................21 7.0 TAXICAB PLATE OWNER LICENCES AND TRANSFERS ........................22 7.1 Physical Security over Taxicab Plate Inventory 22 2 TABLE OF CONTENTS 3 9 8.0 TAXICAB DRIVER LICENCES ...................................................................22 8.1 User Access to EPI Suite Database 23 9.0 MARRIAGE LICENCES AND BURIAL PERMITS .....................................23 9.1 Burial Permits Invoicing 24 10.0 CLOSING COMMENTS ............................................................................24 TABLE 1 CANCELLED PARKING TICKETS BY REASON 2004 - 2008.... 25 APPENDIX 1 INTERNAL AUDIT RECOMMENDATIONS AND MANAGEMENT ACTION PLAN APPENDIX 2 DELOITTE & TOUCHE PRIOR AUDIT REPORT RECOMMENDATIONS FOLLOW-UP RESULTS 3 O EXECUTIVE SUMMARY 4 'The Clerks Division is responsible for the statutory duties of the City Clerk and provides a variety of services to Council, constituents, and staff. The services provided by the Clerks Division include; by-law enforcement, parking control, issuance of licences, animal control, and vital statistics maintenance. In 2008, the Clerks Division collected over $1 million in revenues. The focus of Internal Audit's review was to assess the adequacy of the Clerks Division's procedures and controls over the collection of revenues and issuance of licences. The review also examined the Division's controls to safeguard personal information from unauthorized access or misuse. The Clerks Division uses a number of software applications and databases in support of its parking control, licensing, and vital statistics maintenance activities. Internal Audit recommended that Clerks Division management periodically review user access permissions to these applications and databases. A small number of user accounts in the Ticket Processor database were assigned to individuals who were no longer City employees. In addition, several employees who had access to the Ticket Processor database did not require such access to perform their duties. Clerks Division management has since disabled these user accounts. Internal Audit concluded that controls need to be strengthened over the manual ticket book inventory. Clerks Division management should ensure that the ticket books are issued in numerical sequence to make tracking of the books easier. Staff should also periodically conduct a physical count of the ticket books on hand and compare the count results to the inventory records. This procedure will help ensure that the inventory records are accurate and will detect whether any ticket books are missing. A ticket book that cannot be found increases the risk of misappropriation of City funds in the event the book is misused. Clerks Division management has agreed to strengthen the controls in this area. In 2008, annual revenues from parking ticket fines were over $650,000. The Clerks Division uses the Ticket Processor database to administer parking tickets issued. Internal Audit made a number of recommendations to improve the Ticket Processor data-entry controls. These recommendations included reconciling the payments entered into the Ticket Processor database to the revenues recorded in the City's accounting records. Performing these reconciliations will provide management greater assurance as to the validity of the data-entry and accuracy of the revenues recorded. The Manager, By-law Enforcement Services has agreed to perform these reconciliations under the guidance of the City Clerk. Internal Audit reviewed the City's parking ticket collection rate from 2003 to 2008 to assess the effectiveness of the Clerks Division's collection activities. The City's collection rate was very high (approximately 95%) once all collection actions had taken full effect. That said, Internal Audit recommended that Clerks Division regularly assess the effectiveness of its collection activities. The Division has agreed to perform this assessment on an annual basis. 4 Approval from the City Clerk, Deputy Clerk or Manager, By-law Enforcement 41 Services is necessary before cancelling a parking ticket, except in a limited number of situations. That said, Internal Audit recommended that the process for cancelling parking tickets be formalized in writing. Specifically, procedures should be written that include; the criteria or circumstances in which parking tickets may be cancelled, the necessary supporting documentation, and the required management approvals. Any situations where ticket cancellations do not require the approval of the Clerk, Deputy Clerk or Manager, By-law Enforcement Services should be clearly identified in the written procedures. In 2006, the Clerks Division implemented the AMANDA business licensing software and database. With some exceptions, this database is used to record and issue all licences and permits issued by the Division. Internal Audit recommended that Division management record the remaining business and permit types in the AMANDA database. Adding these licences and permits to the database will provide stronger control than the. current manual processes used to is-sue and track these licences. Clerks Division management has agreed to have all licences in the database by year-end, subject to the availability of IT resources. Last year, the Clerks Division implemented a formal process to monitor its budget and activities. In addition to monitoring the budget, it is a good practice to have a system in place to reconcile revenues received with the corresponding services provided. Internal Audit recommended that the number of licences and permits issued by Clerks Division be reconciled monthly to the revenues recorded in the City's accounting records. These reconciliations will provide Clerks Division management greater assurance that revenues were received for all licences and permits issued. The Deputy Clerk and Manager, By-law Enforcement Services have agreed to perform these reconciliations under the guidance of the City Clerk. In 2008, the Clerks Division collected $120,167 from the issuance of lottery licences. Internal Audit recommended that the inventory of lottery licence forms (blank) be periodically counted, and the inventory changes be reconciled to the licences issued and the licence stock purchased. These procedures will help Clerks Division management detect whether any lottery licence forms are unaccounted for. A missing lottery licence form increases the risk that a licence was issued, but the fee was not collected or received by the central cashiers. Clerks Division management has agreed to implement the recommended procedures. Internal Audit recommended that Clerks Division management, in consultation with the Director, Corporate Services and Treasurer, consider centralizing the mail opening process at the Civic Center. Currently, each department is responsible for opening its own mail. This increases the risk that cheques may not be forwarded to the central cashiers on a timely basis and may result in lost or stale-dated cheques. Management is currently finalizing mail procedures and, if approved, Internal Audit's understanding is that these procedures will result in all mail being opened in the mailroom with all cheques being forwarded to the cashiers for deposit. 5 42 The Clerks Division's central files were locked after business hours to reduce the risk of unauthorized access; however, a number of filing cabinets that contained personal information (names, addresses, copies of photo ID, health certificates, etc.) were not secured after business hours. One set of cabinets was used to file, among other things, the prior year's licences and vital statistics files. The files from these cabinets have since been relocated to locked cabinets. In 2004, the City's external auditors, Deloitte & Touche, performed a process and controls review of the Clerks Division's revenue cycle. The scope of Internal Audit's review included assessing the extent to which Deloitte & Touche's recommendations were implemented. Internal Audit concluded that, for the most part, management had either fully or partially implemented the recommendations made by Deloitte and Touche (see Appendix 1). Clerks Division management is in general agreement with Internal Audit's observations and recommendations. The Division's response, in the form of an action plan, together with the report recommendations, can be found in Appendix 2 of the report. I would like to thank Clerks Division management and staff for their cooperation .during this review. 'Tam-es Halsall Manager, Internal Audit & Control 6 43 INTRODUCTION/BACKGROUND _ The 2006 - 2008 Internal Audit Work Plan included a review of the Clerks Division's revenue processes and related internal controls. The Work Plan was approved by the Audit Committee, the City's Chief Administrative Officer (CAO), and the Director, Corporate Services & Treasurer. This report provides the results of Internal Audit's review of the Clerks Division's revenue processes and controls. The Clerks Division is responsible for the statutory duties of the municipal Clerk, as defined in the following legislation: - Municipal Act - Vital Statistics Act - Marriage Act - Municipal Freedom of Information and Protection of Privacy Act - Municipal Elections Act The Clerks Division also issues bingo and lottery licences, manages the City's records, and prepares Council and Committee agenda and minutes. Along with its statutory responsibilities, the Division is responsible for animal services control and municipal law enforcement. The Clerks Division's revenues, which annually exceed one million dollars, come from a variety of sources. In 2008, the Division collected the following revenues: - Fines $671,096 - Business licences and permits $173,240 - Lottery licences $120,167 - Animal licences and fines $ 78,920 - Sale of services $ 68,050 - Taxi licences and fees $ 31,954 - Marriage licences $ 16,960 By the direction of the CAO and the endorsement of Council, the Clerks Division was transferred to the Corporate Services Department in May 2004. At that time, it was thought necessary and beneficial to undertake a process and controls review of the Clerks Division's revenue cycle. The City's external auditors, Deloitte and Touche, were engaged to perform this review. Deloitte & Touche completed its review in June 2004 and followed-up on the status of management's actions in August 2005. Several of the recommendations made by Deloitte & Touche were dependent on the Clerks Division implementing the Application Management and Data Automation (AMANDA) business licensing software. This software was implemented by early 2007. The scope of Internal Audit's review included, but was not limited to, assessing the extent to which Deloitte and Touche's recommendations were implemented. 7 4 4 SCOPE AND OBJECTIVES The objectives of Internal Audit's review were to determine whether controls were adequate to provide reasonable assurance that - fees from licences, permits, and other services were properly charged and collected - parking tickets and related payments were properly recorded, ticket cancellations were authorized, and any unpaid tickets were collected - revenues recorded in the City's general ledger accounts were accurate and complete - taxicab plates, permits, and licences inventory (blank stock) were adequately safeguarded against loss or theft - personal information collected was protected from unauthorized access or misuse The Animal Services Section was excluded from the scope of Internal Audit's- review as this section had been previously reviewed by Internal Audit. The results of the Animal Services Section review were reported to senior management and the Executive Committee in 2008. A risk based approach was used to perform Internal Audit's review and the methodology included interviews with relevant staff, reviews of documents and reports, performing walkthroughs, evaluation of management control practices, and any other procedures deemed appropriate. The scope of Internal Audit's review was limited to evaluating the adequacy of the design of internal controls established by Clerks Division management. Detailed testing of the effectiveness of the controls was not performed as this level of assurance was not deemed necessary by the City's senior management. Internal Audit review examined the internal controls that operated during the period January 2008 to July 2008. Internal Audit completed.its review in the fall of 2008 and issued its draft report in January 2009. The Clerks Division's action plan was finalized in July 2009. i 8 i REVIEW RESULTS 45 1.0 GENERAL OBSERVATIONS 1.1 Clerks Division Standard Operating Procedures Clerks Division management and staff are in the process of writing Standard Operating Procedures (SOPs) for their Division. Procedures for the Animal Services Section were completed in 2008. SOPs are important for providing direction to staff and for ensuring that new and backup staff is adequately trained. Internal Audit recommended that Clerks Division management and staff continue to develop and document SOPs for their Division. Management also needs to effectively communicate the procedures and monitor their staff for compliance. 1.2 Document Retention By-law The City's Document Retention By-law requires that cancelled, withdrawn, and dismissed parking tickets be retained for only six months. This retention period provides the external and internal auditors a limited time period, which may not be sufficient, to verify the authorization and validity of cancelled, withdrawn, and dismissed parking tickets before the records are destroyed. j In addition, the Document Retention By-law requires that taxicab plate ownership records be retained until the documents have been superseded (replaced with a current record). In practice, By-law staff has been keeping these documents for a longer period. It is critical that adequate records be maintained on the history of each taxicab plate's ownership to ensure that any transfers in ownership are legitimate. Internal Audit recommended that Clerks Division management amend the Document Retention By-law, with Council's approval, to include the following requirements: - Cancelled, withdrawn, and dismissed parking tickets be retained for a period longer than six months (e.g. two years); and - Taxicab plate ownership information, such as licence applications, contracts of sale and Taxicab Plate Ownership Transfer forms be retained permanently. Clerks Division management is reviewing the Document Retention By-law and will be submitting their report to Council later in the year. Recommended amendments to the by-law will be included in the Division's report to Council. 9 46 1.3 Controls over Cheques Received in the Mail The Clerks Division is responsible for the Civic Centre's mailroom where all incoming mail for the City is received. Currently, mailroom clerks do not open the mail, but instead sort the mail and forward it unopened to the appropriate departments. Each department opens its own mail and forwards any cheques received to the central cashiers, who then restrictively endorse the cheques upon receipt. This mail opening process provides poor control over the handling of cheques. A strong system of control ensures that all cheques received are immediately recorded and then forwarded by the most direct path to the central cashiers and deposited in the bank. The responsibility for receiving cheques should also be restricted to one or two individuals who are in charge of endorsing the cheques, so that cheques are less likely to be mishandled or misappropriated. Internal Audit recommended that Clerks Division management, in consultation with the Director, Corporate Services and Treasurer, consider centralizing the Civic Centre's mail opening process. That is, having mailroom clerks open all incoming mail and requiring any cheques received to be directly forwarded to the central cashiers and deposited. Copies or other receipt documentation should then be provided to the departments, if required. Internal Audit also recommended that general mail opening procedures include the following controls: - Logging all cheques received where practical; - Restrictively endorsing cheques at the time the mail is opened; and - Forwarding all cheques received to the central cashiers on the same business day. According to Clerks Division management, the task of centralizing the mail opening process and writing mail opening procedures has been assigned by the Chief Administrative Officer (CAO) to the Deputy Fire Chief further to the anthrax scare. No further actions are to be taken until the mail procedures are finalized. The' Deputy Clerk is now reviewing the final draft and it will be presented to the CAO for approval. The emergency mail procedures are linked to the general mail handling procedures. If approved, Internal Audit's understanding is that these procedures will result in all mail being opened in the mailroom with all cheques being' forwarded to the cashiers for deposit. 10 2.0 PROTECTION OF PERSONAL INFORMATION 47 Background The Clerks Division is located on the second floor of the Civic Centre. Physical access to the Clerks Division area is restricted and security cameras are installed in the front counter area. To a certain extent, these measures mitigate the risk of unauthorized access to the Clerks Division's records. The Clerks Division's records consist of electronic records, which are kept on the City's Information Technology (IT) network, and physical files. For the most part, the Division's physical files for the current year were locked after business. hours to reduce the risk of unauthorized access. Also, the filing cabinet containing taxicab plate ownership information was locked at the end of the day. 2.1 User Access to City's IT Network In general, Clerks Division staff had full access to the Division's file folders and files kept on the City's IT network. In many cases, staff had the ability to change or delete these folders and files. Network access permissions need to be sufficiently restricted, as information technology makes it easier to disclose and disseminate personal information or to view confidential information. Clerks Division management is in the process of reviewing their staff network access permissions. Internal Audit recommended that Division management, as part of their review, ensure that individuals' access permissions are restricted where appropriate (to protect. personal information, etc.). 2.2 Physical Security over Clerks Division's Records A number of the Clerks Division's cabinets which contained personal information were not locked after business hours. One set of cabinets was used to file, among other things, the prior year's licences and vital statistics files. These files contained the following personal information: - Names - Addresses - Phone numbers - Copies of photo ID - Health certificates - Credit card information Another unlocked cabinet was used to file the lottery licence applications, copies of lottery licences, and Charitable Gaming Reports. This documentation included charitable organizations' banking information. Also, the filing cabinets that contained the paid, unpaid, and cancelled parking tickets were not locked after business hours. 11 48 According to staff, these cabinets did not always lock properly. Nonetheless, Clerks Division management needs to ensure that all filing cabinets, and in particular those containing personal information, are locked after business hours. Internal Audit recommended that management either repair or replace these filing cabinets. The Clerks Division's filing cabinets have since been repaired to the extent possible and critical personal information files have been relocated to locked cabinets. Three additional cabinets will also be purchased in 2009. Lastly, Clerks Division staff kept their working files, such as licence applications, Vital Statistic forms, Chartable Gaming Reports, etc. at their desks until their work was completed and filed. These files contained personal information and were not secured (e.g. locked) after business hours. Internal Audit also recommended that Clerks Division management ensure that these working files are secured after business hours. Clerks Division management has since directed staff to lock their working files in an available manager's office at the end of the day. 3.0 PROCESSING OF PARKING TICKETS Background Parking ticket revenue is the most significant source of revenue for the Clerks Division. In 2008, over $650,000 was collected in parking fines and 18,849 parking tickets were issued. Administrative clerks use the Ticket Processor database to administer the issued parking tickets. There are two methods for entering issued parking tickets into the Ticket Processor database. The hand-written tickets, which are primarily'issued by private security companies on private property, are manually entered into the database. To reduce the risk of keying errors, data-entry fields have drop-down lists for administrative clerks to choose from (date, plate month, violation, vehicle type, etc.). The Ticket Processor database also checks to ensure that the ticket number entered is within the sequence of assigned ticket books recorded in the database. The database will also indicate if a duplicate ticket number was entered. Regarding handheld issued tickets, at the end of each day, the units are placed in a docking station and the ticket information is downloaded into the Mobile Enforcement System (MES) host application. The ticket information is then exported from MES and saved in a file on the City's IT network. The file is imported into the Ticket Processer database, and a log indicates the number of tickets successfully imported. With respect to the hand-written tickets, Clerks Division management has established a number of controls over the inventory of manual ticket books. A Municipal Law Enforcement Officer (MLEO) maintains a spreadsheet to record the ticket books (blank stock) purchased, issued, and unassigned. The inventory is kept in a locked closet, and the ticket books are either distributed by administrative clerks or signed out by MLEOs. 12 To obtain a ticket book, a form is completed which identifies the ticket number 49 sequence of the book(s) issued. The recipient of the book(s) must sign the form and a copy of his or hers identification is attached'to the form. Once a ticket book(s) has been issued, an administrative clerk enters the ticket number sequence of the book(s) into the Ticket Processor database. Once entered, the status of the corresponding tickets (issued, paid, or not paid) is then tracked by the database. Parking tickets can be paid in person at the Civic Centre or by mail, drop-box, or online. Clerks Division staff do not handle payments made at the Civic Centre. Instead, administrative clerks prepare a three part receipt form and direct the individual to pay at the central cashier. The payment is processed and a copy of the receipt is returned to the Clerks Division to enter the payment into the Ticket Processor database. Parking ticket fines vary depending upon the infraction and timeliness of the payment. If a ticket is unpaid, the fine amount increases and a number of scheduled collection processes occur. The first step in the collection process is to issue a Notice of Impending Conviction (NIC) letter to the registered owner of the vehicle. If the parking ticket remains unpaid, the Clerks Division registers a conviction against the vehicle owner without further notice. Upon conviction, the vehicle owner is required to pay a fine and a conviction fee. Failure to pay the fine will result in a Request for Plate Denial submission to the Ministry of Transportation (MOT). The renewal of the registered owner's vehicle permit will be denied until all outstanding parking fines are paid. 3.1 User Access to Parking Ticket Databases A small number of user accounts in the Ticket Processor database were assigned to individuals who were no longer City employees. In addition, several employees who had access to the database did not require such access to perform their duties. Clerks Division management has since deleted or deactivated these individuals' user accounts in the database. Several users were also assigned the access permission "Create/Edit Other User' which enabled them to add a new user and edit user access permissions in the Ticket Processor database. The "Create/Edit Other User" access permission should be restricted to one or two individuals to ensure that new user accounts and any access changes are authorized by management. Clerks Division management has since reduced the number of staff with this access permission. Three individuals, which included the Coordinator, Records and Elections, had the "Administrator' rights assigned to them in the MES Host application. This is the highest security level and should be restricted to one or two individuals. A user with "Administrator' rights can create and delete user accounts, void tickets, and create and export files from the database. Clerks Division management has since changed the Coordinator, Records and Elections' access to a lower security level. 13 i Int oal Audit recommended that written procedures require Clerks Division management to periodically review user access permissions to their software applications and databases. Individuals' access permissions should be consistent with their current work responsibilities and provide an adequate segregation of duties. Clerks Division management has agreed to review user access rights on a quarterly basis. Several other observations were made regarding the appropriateness of certain individuals' access permissions. Where Clerks Division management was in agreement, the access permissions for these individuals were either removed or limited. 3.2 Manual Ticket Books Inventory Internal Audit counted the manual ticket book inventory at the end of May 2007 and noted gaps in the sequence of ticket books on hand. These gaps were due to. the ticket books being issued out of sequence. This practice makes it more difficult to track the ticket books and increases the risk that the books may be misused. Internal Audit recommended that all ticket books be signed out in sequence, and that a log be maintained in the storage closet to record the last ticket number removed from inventory. Clerks Division staff also did not periodically conduct a physical. count of ticket books on hand and compare the count results to the inventory records. Having an independent party physically count the inventory will ensure that the inventory records are accurate, and will detect whether.any ticket books are missing. A ticket book that cannot be found increases the risk of misappropriation of City funds in the event the book is misused. Internal Audit also recommended that the ticket book inventory records be regularly reconciled to the current book assignments recorded in the Ticket Processor database. These reconciliations will help staff detect and correct any errors in the inventory records or the current book assignments recorded in the database. Clerks Division management has agreed to implement the recommendations made by Internal Audit. 3.3 Ticket Processor Data-entry Controls Data-entry of Parking Tickets Issued Controls over the data-entry of issued parking tickets into the Ticket Processor database were satisfactory with one exception. The file containing issued parking tickets downloaded from the handheld units includes a control total; however, the administrative clerks do not use this control total to verify the completeness of the tickets imported into the database. Clerks Division management has agreed to include this procedure as part of their SOP work plan. 14 Data-entry of Payments 51 Internal Audit made two recommendations to improve controls over the data-entry of payments into the Ticket Processor database. Firstly, the administrative clerks should check the accuracy of their own data-entry. This can be done by printing reports from the database of payments entered and verifying the payments to the .source documents (manual receipts, daily PayTicket reports, etc.). Secondly, parking ticket payments entered into the Ticket Processor database should be reconciled to the revenues recorded in the City's general ledger (G/L). Implementing these two recommendations will provide greater assurance as to the validity of the data-entry and accuracy of the revenues recorded in the City's accounting records. The Manager, By-law Enforcement Services has agreed to perform these reconciliations under, the guidance of the City Clerk. However, additional resources would be necessary for staff to verify their own data-entry of payments into the Ticket Processor database, according to Clerks Division management. 3.4 Parking Ticket Cancellations In 2008, the Clerks Division cancelled a total of 2,364 parking tickets, which represented 12.5% of the total tickets issued. Internal Audit reviewed the parking ticket cancellations for the month of April 2008 and noted that the City Clerk, Deputy Clerk or Manager, By-law Enforcement Services had approved all the ticket cancellations, except in the following situations: Ticket cancellations that resulted from First Attendance Parking Tag Review decisions; Vehicle information (vehicle make, licence expiry date, etc.) received from the Ministry of Transportation was inconsistent with what was recorded on the parking ticket; or The car owner information could not be found. - i In the first situation, documentation, which was signed by the First Attendant Facilitator and the defendant, was on file to support the parking ticket cancellations. In the second and third situations, reports from the Ticket Processor database were kept on file to support the ticket cancellations. Cancelled parking tickets due to officer error, void at point of issue, and public relations were approved by Clerks Division management; however, a small number of exceptions were noted. Internal Audit recommended that written procedures be developed for the cancellation of parking tickets that cover the following areas: - Criteria or circumstances in which parking tickets may be cancelled; - Necessary supporting documentation; and - Required management approvals. 15 i 57 Any situations where parking ticket cancellations do not require the Clerk's, Deputy Clerk's or Manager, By-law Enforcement Services' approval should be clearly identified in the written procedures. Internal Audit also recommended that the Manager, By-law Enforcement Services periodically sample parking ticket cancellations to ensure compliance staff with the procedures. The Manager, By-law Enforcement Services has agreed to perform this review on a quarterly basis. Internal Audit also reviewed parking ticket cancellations from 2004 to 2007. The number of parking tickets cancelled as a percentage of the total issued has' steadily declined from 19% to 10%. The percentage did increase to 12% in 2008. Table 1 (pg. 25) outlines the various reasons why these tickets were cancelled, several of which are outside of management's control. Although Clerks Division management approves individual parking ticket cancellations in most situations, Internal Audit recommended that management regularly review and report on the following items: The number and value of parking tickets cancelled and voided (by user and overall); and The percentage of parking tickets cancelled and voided, and the reasons. Each parking ticket cancellation is unique; however, the above information will help Clerks Division management detect and correct any future unexpected trends regarding parking ticket cancellations. Any unexpected trends may not be self- evident when approving individual parking ticket cancellations. Clerks Division management has agreed to annually compile and report on the above information. 3.5 Parking Ticket Collections As of July 8, 2009, there was a total of $489,738 in unpaid parking tickets. Eighty- nine percent of these tickets have gone to plate denial which is the final stage of collection. Internal Audit reviewed the City's parking ticket collection rate from 2003 to 2008 to assess the effectiveness of its collection actions. The City's collection rate was very high (95%) once all collection actions had taken full effect. That said, Internal Audit recommended that Clerks Division management monitor its collection rate by periodically reviewing and reporting on the following items: The number, amount, and age of unpaid parking tickets and the tickets collection status (e.g. in plate denial stage); and The percentage of parking tickets collected (City's collection rate). The above -information will provide Clerks Division management with ongoing assurance that scheduled collection processes are occurring as expected. Management will also be made aware of the amount of unpaid parking fines and the City's performance regarding the collection of unpaid fines. Clerks Division management has agreed to compile and report the above items on an annual basis. 16 J 4.0 FIRST ATTENDANCE PARKING TAG REVIEWS 53 Background The purpose of First Attendance Parking Tag Reviews is to give the offender the opportunity to be heard and dispute their guilt for the parking offence rather than attending court. These reviews also provide an increased level of customer service, and take into consideration the limited court resources available for parking offences. First Attendance Reviews are scheduled at the Civic Centre every Tuesday and Thursday. A First Attendance Facilitator, who is a part-time City employee, conducts the reviews and records his decision on the Request For Parking Tag Review Form, which is signed by the offender. If the First Attendance Facilitator believes that a reasonable explanation for the violation has been provided, he may reduce or cancel the fine entirely. Cancellation of parking tickets is to be done in extenuating circumstances only, according to the First Appearance Parking By-Laws draft procedures and earlier issued guidelines. 4.1 Management Oversight Because every situation is different, the First Attendance Facilitator is required to exercise his discretion in reducing or cancelling a ticket. Nonetheless, Clerks Division management has a responsibility to oversee the performance of First Attendance Parking Reviews and provide support and advice to staff as required. As noted earlier, Internal Audit reviewed the parking ticket cancellations from 2003 to 2008. The number of tickets cancelled during this period because of First Attendance Parking Tag Review decisions were less than 5% of the total tickets issued. However, this percentage has been increasing since 2004 (from 1.84% to 4.76%). See Table 1 (pg. 25) for Internal Audit's analysis of parking ticket cancellations. Internal Audit recommended that Clerks Division management periodically review and report on the percentage of tickets cancelled because of First Attendance Parking Tag Review decisions. This information will help management detect and correct any future unexpected trends with respect to First Attendance Parking Tag Review decisions. Clerks Division management has agreed to compile and report this information on an annual basis. Internal Audit also reviewed the First Attendance Parking Tag Review decisions for the month of April 2008. A summary of the decisions is provided below. - Parking ticket fine reduced (58%) - Parking ticket cancelled (39%) Parking ticket fine was upheld (3%) 17 54 The cancelled parking tickets had $4,618 in fines due. As noted earlier, tickets are to be cancelled in extenuating circumstances only, according to the First Appearance Parking By-Laws draft procedures. Internal Audit recommended that the Manager, By-law Enforcement Services periodically review a sample of individual Request For Parking Tag Review Forms. The circumstances for cancelling or reducing the parking ticket fines should be assessed for reasonability. The Manager, By-law Enforcement Services has agreed to perform this review on a quarterly basis. Lastly, the First Attendance Parking Tag Reviews are conducted in a partitioned area for privacy reasons; however, the Civic Centre's security cameras do not have a direct sight line to view this area. As a result, the activities of the First Attendance Facilitator cannot be monitored and employee safety may be at risk. Clerks Division management has agreed to review this issue with Facilities staff. 5.0. LICENCE AND PERMIT REVENUES Background In 2008, the Clerks Division collected over $400,000 in licence and permit fees, of which $104,000 was received from the Pickering Markets. The following types of licences and permits are issued by the Clerks Division: - Business licences - Cat and dog licences - Signs permits - Taxicab licences - Lottery licences - Marriage licences The application process and associated fees vary depending on the type of licence or permit required. The licence and permit fees are approved by Council, and the fees are available on the City's website for the public to view. The licence and permit application forms also include the applicable fees. In most cases, applicants must visit the Civic Centre in person to submit their licence or permit application and pay their fee. Clerks Division staff do not handle payments made at the Civic Centre. Instead, administrative clerks or MLEOs prepare a three part receipt form, record the receipt number on the application, and direct the individual to pay at the central cashier,. The payment is processed and a copy of the receipt is returned to the Clerks Division. The receipt copies are then filed centrally by an administrative clerk, who ensures that all receipt forms are accounted for. 18 55 5.1 Budget Monitoring and General Ledger Reconciliations In 2007, Clerks Division management implemented a formal process to monitor their budget and activities. Each month, management reviews the expenditures and revenues in, their respective areas, and any significant variances from budget must be explained to the City Clerk. These reviews are signed off and any management comments are documented. To a certain extent, these high level reviews provide Clerks Division management with assurance that revenues and expenditures are recorded correctly in the City's G/L. In addition to monitoring the budget, it is a good practice to have a system in place to reconcile revenues received with the corresponding services provided. Specifically, Internal Audit recommended that Clerks Division staff reconcile the number of licences and permits issued each month to the revenues recorded in the City's G/L. These reconciliations will provide Clerks Division management with greater assurance that payments are received for all licences and permits issued. Ideally, the individual performing the G/L reconciliations should be independent of handling the cash receipts and issuing the licences and permits. The Deputy Clerk and Manager, By-law Enforcement Services have agreed to perform these G/L reconciliations under the guidance of the City Clerk. Internal Audit also recommended that Clerks Division management, in cooperation . with Accounting Services staff, establish additional revenue accounts (or sub- accounts) in the City's G/L. There are only two G/L accounts (#1512 and 1411) to capture and record revenues for the various types of business licences and administrative services provided. Creating additional G/L accounts (or sub- accounts) will make it easier for Clerks Division staff to perform the above recommended G/L reconciliations. Discussions are currently underway between Accounting Services Section and the Clerks Division to set up additional revenue accounts (or sub-accounts) in the City's G/L. 5.2 Recording and Tracking of Licences Issued In 2006, Clerks Division management implemented the AMANDA business licensing software and database. The Division uses this database to record most of the licences and permits issued in the year; however, Clerks Division staff does not use this database for the following licence and permit types: - Markets business licences - Automobile wrecking yard business licences Public Halls business licences Hawker/peddler licences Refreshment vehicle licences Permanent sign permits 19 56 Instead, the above licences and permits are prepared manually, and spreadsheets are used to track the licences and permits issued. According to Clerks Division management, they originally intended to use the AMANDA database to record all of the Division's licences and permits. Adding the above licences and permits to the database will provide stronger control than the current manual processes used to issue and track these licences. For example, only approved licences and permits can be issued from the AMANDA database. Also, licence and permit numbers are provided by the database to avoid any manipulation in the issuance of the licences and permits. Once a licence or permit is issued, the ability to make changes (update and delete records) in the database is restricted. Lastly, the database makes it easier to track licence and permit expiry dates for renewal purposes. Clerks Division management has agreed to have all licences recorded in the AMANDA database by year-end, subject to the availability of IT resources. 5.3 Licence and Permit Payments Having a centralized cashier function at the Civic Centre provides strong control over cash receipts; however, there is a risk that Clerks Division staff may issue or renew a licence without the payment being collected or received by the central cashiers. To reduce the above risk, Internal Audit recommended that Accounting Services staff centrally file the "yellow" copies of the three-part manual receipt forms. Clerks Division staff could then file their "pink" copies of the receipt forms in the individual licence and permit physical files. This change in procedure will provide By-law management and staff greater assurance when reviewing licence and permit applications that all fees have been paid and received by the central cashiers. Corporate Services Department is in the process of phasing out the three-part manual receipt forms and replacing it with a Cash Receipts Voucher Form, specific to each area. Once implemented, staff will complete the Cash Receipts Voucher Form with the same information that is currently provided on the three-part manual receipt forms. The voucher will be forwarded along with the customer's payment to the cashier for processing. Once processed, the cashier's slip printer receipt will be given to the customer and the processed voucher will be returned to the originating areas for their records. 20 57 6.0 LOTTERY LICENCES Background The Clerks Division issues lottery licences to non-profit organizations for charitable gaming events (bingos, raffles and beak-open tickets). The lottery licence forms, which are provided by the Alcohol and Gaming Commission of Ontario (AGCO), are pre-printed and sequentially numbered for control purposes. Clerks Division staff issue the licences in numerical sequence, and the inventory of licence forms (blank) is secured after business hours. Every quarter, the Division is required to report to the AGCO on the total number of licences issued and the fees collected. In 2008, the Clerks Division collected over $120,000 in lottery licence fees. 6.1 Lottery Licence Forms Inventory Internal Audit recommended that the inventory of lottery* licence forms (blank) be periodically counted, and the inventory changes be reconciled to the licences issued and the licence stock ordered. These procedures will help Clerks Division management detect whether any lottery licence forms are unaccounted for. A missing or lost lottery licence form increases the risk that a licence was issued,. but the fee was not collected or received by the central cashiers. Internal audit also recommended that the number of lottery licences issued and corresponding fees collected each month be reconciled to the revenue recorded in the City's G/L. These reconciliations will provide Clerks Division management with greater assurance that payments are received for all lottery licences issued. Clerks Division management has agreed to implement both of Internal Audit's recommendations. 6.2 Lottery Licences Database Clerks Division staff did maintain a database to prepare and record all lottery licences issued; however, staff stopped using this database in 2008 because it did not allow for different time slots to be recorded on the same bingo licence. A new licence had to be prepared for each time slot assigned to a licensee. As a result, staff had to prepare several licences for the same licensee. Administrative staff now uses Microsoft Word software to prepare and print the lottery licences on the AGCO licence forms. Internal Audit recommended that a database be re-established or a spreadsheet be maintained of all lottery licences issued. This database or spreadsheet will help -Clerks Division staff reconcile inventory changes of licence forms (blank) to the licences issued, as recommended by Internal Audit in 6.1. This database or spreadsheet will also be helpful for compiling statistics for AGCO reporting purposes. Clerks Division management has agreed to maintain a spreadsheet of lottery licences issued. 21 7.0 TAXICAB PLATE OWNER LICENCES AND TRANSFERS Background Clerks Division management has implemented a number of controls over the issue and transfer of taxicab plate owner licences. Owners must annually renew their licences in person at the Civic Centre, and new taxicab plates are issued to the owners each year. Taxicab plates are only printed for current plate owners, with the exception of 10 temporary plates. If a taxicab plate is lost or stolen, the plate owner is given a temporary plate, which is valid until the end.of the current year. The taxicab plate owner licences, renewals, and plate transfers are recorded in the AMANDA database. In the event of a transfer in ownership, the current and new plate owners must attend in person at the Civic Centre and complete a Taxicab Plate Ownership Transfer Form. They both must provide picture ID to confirm their identities and a photo of the new owner is taken. Also, the fully executed contract of sale for the taxicab plate must be provided and a copy is retained in the physical taxicab plate files. Lastly, the Manager, By-law Enforcement Services approves and witnesses the taxicab plate owner transfer. An MLEO also witnesses the transfer. 7.1 Physical Security over Taxicab Plate Inventory The taxicab plate inventory (unissued) was kept in a filing cabinet in the Manager, By-law Enforcement Services' office; however, the cabinet was not locked during or after business hours. Due to the fair market value (>$75,000 each) of the taxicab plates, Internal Audit recommended that the taxicab plates inventory be kept locked at all times. The Manager, By-law Enforcement Services did not have a key to the cabinet where the inventory was kept, but she did lock her office after business hours. The cabinet has since been rekeyed with a new lock. 8.0 TAXCAB DRIVERS LICENCES Background In 2006, Clerks Division management implemented the EPI (Electronic Photo Identification) Suite application to issue card licences to taxicab drivers and body- rub owners, operators, and attendants. This software has improved the control over the issuance of these card licences and reduced the risk that these licences may be falsified or duplicated. Before issuing a card licence, The Manager, By-law Enforcement Services must first approve the licence in the AMANDA database. The cardholder and licence information is then imported into the EPI Suite application from the AMANDA database, and a picture is taken of the cardholder. 22 I 5 9 .8.1 User Access to EPI Suite Database Two MLEOs were assigned the "Clerk" security level in the EPI Suite application. Internal Audit recommended that these individuals' access security levels be changed to "Viewer". This change provides a greater segregation of duties between the review, approval, and printing of card licences. Segregation of duties helps ensure that any errors or irregularities are prevented or detected on a timely basis. Clerks Division management has since removed these individuals' access to the EPI Suite application. In addition, Clerks Division administrative staff was assigned the "Clerk" access security level in the EPI Suite application. This security level is necessary for administrative staff to take the individual's picture and print his or her card licence. However, users with the "Clerk" access security level can issue a card licence without importing the cardholder and licence information from the AMANDA database. This possibility increases the risk that a card licence may be issued but was not approved by the Manager, By-law Enforcement Services. One way to detect whether an unauthorized card licence was issued is to review the licence numbers assigned to the cards issued. The EPI Suite application automatically assigns a number to the card licence which is the file folder's RSN number in the AMANDA database. An unauthorized card licence would have a number that was not valid or consistent with the file folder RSN numbers assigned by the database. Internal Audit recommended that the Manager, By-law Enforcement Services regularly review the card licences issued from the EPI Suite application to ensure that the licence numbers assigned to the cards are valid. Clerks Division management has not implemented this recommendation as they view the risk to be minimal. 9.0 MARRIAGE LICENCES AND BURIAL PERMITS Background Clerks Division controls are satisfactory regarding the issuance of marriage licences and over the inventory of licence forms (blank). The forms, which are provided by the Office of the Registrar, are pre-printed and sequentially numbered for control purposes. Upon receipt of marriage licence forms (blank), the licence numbers are entered into the Vital Statistics database maintained by the Clerks Division. When preparing a marriage licence, the Vital Statistics database assigns the next sequential number available to the licence, and an administrative clerk matches the number to the number on the physical licence. The inventory of licence forms (blank) is counted every six months, and the inventory changes are reconciled to the marriage licences issued and the revenue recorded in the City's G/L. The inventory of licence forms is also secured after business hours. 23 60 Regarding burial permits, funeral homes are required to get a burial permit from the City before a body can be cremated or interred. The City invoices the individual funeral homes each month for the burial permit fees owing. The invoices are printed from the Vital Statistics database of registered deaths maintained by Clerks Division staff. 9.1 Burial Permits Invoicing Internal Audit reviewed a sample of the funeral home invoices printed from the Vital Statistics database and noted that the burial permit fees billed were incorrect. These invoice errors resulted in a small loss of revenue to the City. Clerks Division management has since directed their administrative staff to prepare the funeral home invoices in the second week of each month. This change in procedure will provide staff with more time to ensure that all registered deaths from the prior month have been entered into the Vital Statistics database before issuing the invoices. 10.0 CLOSING COMMENTS In closing, Clerks Division management is in general agreement with Internal Audit's observations and recommendations. Their response, in the form of an action plan, together with the report recommendations, can be found in Appendix 1 of the report. 24 61 Table 1 Cancelled Parking Tickets by Reason 2004 - 2008. % of % of % of % of % of Total Total Total Total Total Tickets Tickets Tickets Tickets Tickets Reason Ticket Cancelled 2008 Issued 2007 Issued 2006 Issued 2005 Issued 2004 Issued First Attendance Review 902 4.76% 593 3.15% 408 2.63% 397 2.26% 224 1.84% Public relations 135 0.71% 149 0.79% 106 0.68% 139 0.79% 58 0.48% Officer Error 291 1.54% 226 1.200/6 201 1.30% 159 0.90% 396 3.25% Void at point of issue 123 0.65% 122 0.65% 276 1.78% 856 4.87% 86 0.71% Incomplete or illegible ticket 72 0.38% 58 0.31% 198 1.28% 95 0.54% 477 3.91% Ticket entered incorrect) 5 0.03% 9 0.05% 74 0.486/6 1 0.01% 6 0.05% Incorrect owner detail 444 2.34% 476 2.53% 390 2.52% 406 2.31% 292 2.40% Plate not found 166 0.88% 141 0.75% 93 0.60% 145 0.82% 119 0.98% Stolen vehicle/ plates 40 0.21% 54 0.29% 44 0.28% 55 0.31% 172 1.41% Unplated vehicle 28 0.15% 35 0.19% 21. 0.14% 130 0.74% 227 1.86% Out of province 42 0.22% 14 0.07% 35 0.23% 155 0.88% 126 1.03% Handicap parking permit provided .37 0.20% 58 0.31% 54 0.35% 58 0.33% 77 0.63% Other 79 0.42% 21 0.11% 41 0.26% 60 0.34% 39 0.32% Total tickets cancelled 2,364 12.48% 1,956 10.38% 1,941 12.52% 2,656 15.11% 2,299 18.86% Total tickets issued 18,935 18,836 15,504 17,576 12,192 i 25 62 CITY OF PICKERING Clerks Division Revenue Controls Review APPENDIX 1 INTERNAL AUDIT RECOMMENDATIONS AND MANAGEMENT ACTION PLAN Internal Audit Corporate Services Department August 2009 53 O L L L L E O O O E O N a) O d +r N a) C) N O N Q U N, Q. 0 w 4) CD c) (5 a) H U) m U) m ~ M O (a "0 V co U) CY) m a) 0-0 _O a) c=a •N ~E Q`L~CU U U EL 0) c-) CD c - co n0-o D 0- 0 cu UQU C: ~ 0 Q I C o o C ~ c O ° m-0 0 -0 E ca O-0N a) 4-C) CD a) " co C >,"O U) +4) C L 3 O O co 0) -.M a c' OC3L cEE cr X 000) .--o ~0,- ~U) c~~ c Oc -°ccn0- >E (D CL N~ ~o op L- a) c o Q R c-o~_cn (D ~0 c a)U a~ p E a) c o=c c~ ~ca Q=3>, c0-0 -a - a) C: U) 0 0 4) =3 _a cD Q_ (D CL 0 C: -0 Q d d M O O_ C c a) -0 cv (u vi t 1 c d Q n Q a, o O -0 -0 0 o c cu a _ O O c0.) 0 U)) cu m ca co 0 a) Q o v0) cn _ c co > Q O a) O O c O c a~ Q c m C O c -0 C: Q 3: E Q O O 0 c a) ca L _ O L O d ~ _ Q a) Co C L- 0 0-- a) ad+ C 0- D C O •(0 O C O 0 c p O a) a O CD 3 U a) 32 E E E o -0 E a, 0 t- a) a) 4 0 m = U W 0) a' Co -04-- CU L) M C: o a) E a~ w c o a) 3 c c L o 0) .r- . a_ c E ~ (D ca ca a) 0- 0 E co tt7 cu o ~ T- cu -0 YLy' v) c: E Q~ -Se L L aD -0 Q C: ,O fn L O a) Q C 0 L CD a) L- a) 0 o) -M) CU _ v a) 0 O .L O co X L i Yd U-0~Y~-.E E Uc~ co ar-) Cc: = O L (D -0 0 CD C L- O L a) C~ V a H m d U N c6 m H of o co -0 O r N r r r 64 co CD CD CD H Q N O ' I-- a O Y L c~a .N U a Q c Q o a~ a C o -0 cm E a) ~ a) a) c: 0) c 0) cu c: m e c (D U) co -0 0 'CO > FL co U) .2! 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O E : O Q 7 0-0 m cu Q U C p ~ CO cn L 'd U U~ O N ar cOi~ Occu"'•~ O +r C d 0 L U CU O= N H - '0 U co N ca D CO 0 H O° O) o C: -p 0 ~ o C U ~ Q R •N N d Q ~ U M - C C O Co U) v O ` c U) 4- a 0 -C (1) 0 0 U) (D 0 U) E E 5, u) (D M 0- M 0 M U) U) U) EL 'T U C N N N O (D r- a) M " E a) CD E c: a) cl~ N L t cn~ E'> N E o N O L o c p Co Q 0.. r O Q L L ..Q O 0-0 co cn O L a) O Q d y~-+ n Q~ O x CD U) :3 L - N O ea R _U ~ ca N O cn O Q ca _ 4L N Q 4-- -C o c U U >i O C c U >1 c > o O O d CL L- O O O Cn 2 E c O Q 'N O E 0 O E N N q) Q- c CL M CD 0 Q m~_ ~°-Q-emu) ao0 E~ ECD Do3~QLE`0 U O 0. O d) CD .o CU 0) tr-- C: 6 ca C U o Q U > 0) o o Q O U c >E ca ova) -0 UUmu) cnaD =3 cE:3 cDc U) :3 d C M Q N N L O 0 0 L S L O 0 U.~ ca of oEw -ocCL H 00 0 5 > CL U>o v m c c v O 'C 'v U 0, cn N Q fa a) - c E=3 lp U O L -C 0 -F Ca a) r E N O W N 70 c U) ci E a a? :3 E L-' (=D o cLaoo~E Q~ V O C.) ;c,; Q- Q ca c G1 O O L 0- U > 0 cn p N ~ -p ca O N . 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O so D ~ ~ N d M a C O E H ~N U -2 O H _0 0 ~ cu O C cA Y Y L: C _N O O a) .y U Co U 72 w o a 00 r a) v DU ~ ~ Q L C O Q C E C cp O N c6 0U ~ 5 c c C O U' -p E O C O >cca a o O aai ~auim C 0 -2 ~2 O c L cn ~.O C;) -2 r "C a) - (D 4-- a) c c 0 x 0c ~Y "00) OQC~ E c pay a~ cn c a0iE3 0 c c c u CD a) 0 00 L/) 0 ) 0 0 CL N O O a) C cu a) 0 a) cc 0 :3 cn -0 < CD 0) N .p a) ca co c Im 0 c c c 0 ca a C)ac)aa)) _0 ~o~ L'~ >E ca ,'c 0i 0o~>~ 0 (D E J c U w Q L E 0 a) c a) C C J (6 U 4) tB O O N \ O 4) (n cn U Q N O O^ U U Co p L O (6 U to 0 a) ~ C 0 Cl) E Cu cn 4- L c c 'tn C 0 C 0 a) C: c6 0 w > O U a) 'O _ L Q m U (D N c6 U E _0 e) U L U a) 0 a) U) R E 0 .0 .0 O O C U C U N -0 E" O O C 0 O a) m E a) = a) ~ i M o 0) CD a~ m m c 0 O_ a) a) (D C 'C c C Y O a) i E a) -0 :3 cn CU a) -0 0 0 a) =3 a) N a) U C O 0 O d d a) cu a c6 N v) O C E Q -O CL d -Y _a _ca O cn . .0 V O U N N ca 0 'a Q- J U U J J cr) C O Z' C C U 'E U)- L O) -1., C: -a a) 0 a) Z CO) cr a) a) 0 CL O r N O ~ O 8 1 D p - ~ Q. ca o H U m U O 87 m ~ • a Q CY) c c o o CD w Q c Lo cn -0 m E m a~ a~ c v,0) 3a~ c c~p~~ CD cn L m ca)g c c~~3 K .N N C v Y Q~ U~ O cv Q Y E o c c c c~ cn v~ 0 Q1 Q O O (D p o 0 N Q i V E c U Q as 010 4) w CD Vic e0) co 3: C:- U CU a) a) ca > E ca (D T V cn L_ 0 H m O cu V :t! ca 3 N c Q c d ° m ~i'E~ m (D 0 0) 0 a) Co c x - r a) 0 H 4.cc~co c E L o - ~ E d a? a~ a) L 0 =3 U (D V C Q O p V 3 C Q Co -0 x U) Co cn IL U) a, E 'C 7 Co a) L '4'fn fn i v N N U ;B Lb ~ p ~•c 0c o ~ . ti ti 8 2 o CD c m Q O H Z U a) O U C) m N •y E a Q ~CD c c o z ~w Q a O L a) d L C O O CO O = CO O p ~ E 3a) c -0 c ~O~ m o- > cam N > O o o~~ a~~~ coEU r N d a) co ca N S2 u) U) a) c :3 C: L 0) c Occ c a)c6Ua) ~caU) o O CL E to 0 0 m o c E m U Q tm O c.E cL a)N U a a m hoc (D ai 0 V-: m M c E FD O 0- E Z Q 2 Q 0 cu 0 L_ a) _ a) w L a a) m to U) ca E W -2 ° Q C m T i O C 76 "O O cII ~L ~ O > C a..• ~C Ca m CO C m 0) a) U) 0 m c 0 a) La) U L i N U O to a) C C N N C C E V 7 m V N-0 O O a N 0 c) O c w CO aCc = ~ V d U) a) O O a) O M J W c5.0 ca Q~ 0 (D a) 0' :3 CD 0 co a) E Q- Q O O a) O cu CD O v U o o 0 00 -a , :3 Ei 4-- c :3 CU (D a) L 0 ~W ~WU) U LW co o r co co 83 CITY OF PICKERING Clerks Division Revenue Controls Review APPENDIX 2 DELOITTE & TOUCHE PRIOR AUDIT REPORT RECOMMENDATIONS FOLOW-UP RESULTS Internal Audit Corporate Services Department August 2009 3 8 4 U) C d E O V C d E aY C Q CD _ N Z cn Of a) a) -I.- Q L ~ •a a) U5 U) 3 O O a) L~ a a) c (n m a) 'p a) c 0) -0 C cu a) N LL u) L CL OCD O N a) U p C a) = L -0 c6 E -o u ca a) =3 C: p a) - a) a- C O C p~ O p~ 0 U N CU U U 0 cu ~ 5 O) - c6 N a) ° O U ~ c ,r cn 0--o =3 CU -p i c6 V- O) a) c O) O 4) 'O a) c c C ~ o L CU -0 L() aa)i E m E U) a) uui >.T ~4 a) V O Eo~CUCcu 0 coc0>,0w0>a)° a) n C: CU = E cu E -r- ' N - c U C = 0 a n E M " O' W E _0 X OU 3 C a) a) -C cv O O N cu c 40 a cu 'p D Q > ~~cc >~oc~EcEE-- )c r_ E = E cnEoE~~c.r~~Eo0 ~c'v,c axi i O a) CL Q dp 0 L QC 0 CD-cl- c vn N E L~ cu -0 ~ Q =N U.~ Ew x) ' > 0)) E-o c QoULL ccuC: 'cn L fn O C N U 3 CD (D "0 C C 0 (D L N ~ O (u O (6 a) ~ p E ~ !6 O cn C c N a) c c "O = LL vi v) C C L- (n 0) = O C' c 'V 0 O CU O 3 a) O a) 4 a) oU V U (n L -0 Q) C U Y L O L cu cn L- 4- H E c U a)w a) 0•co a) 5 a)->j5 a) cu Ono °-a E > to 06 E C.) -a L- O > "O a) a) O U (0 a) cn a) ~ w U 0 U cn c U C - C Q -0 a) = ca O O a) cE camcvc)• N o n °E a)O°>ca~E~EEa)U-0 c-0 O_ ea O c> j, a) a) O o U E O C a) L> O O ca O - L- r- co a) 2 L) LL co m CU w a- U ca o. 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M O a) O L L 4- a) a) CD- C: N :3 _a U C' a) CU O-0> c r, a) U O N C a) U) _ co U > a m d d U U U -p 06 - M CL en O1 m E U- r- CO U 0 C a) C E O a) C :3 (n T Q j Q ca m 0 0 C CD 'X -0 ~U _0 4)20 0 m d y Q O C> U O 4.1 .C O O p cu E c a) 0 0 ~ C I0-0 V -p C - O O N Q-N>_ CL ff -Z a) r) O 0 Y O v c Y N -a 4) CU C L N i=. 1- U-a Eca (D U I Cis, REPORT TO EXECUTIVE COMMITTEE a-WftL PT - ERIl V G Report Number: CS 37-09 104 Date: October 13, 2009 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Section 357/358 of the Municipal Act- Adjustment to Taxes Recommendation: 1. That Report CS 37-09 of the Director, Corporate Services & Treasurer be received; 2. That the write-offs of taxes as provided under Section 357/358 of the Municipal Act, 2001 be approved; and, 3. That the appropriate officials of the City of Pickering be authorized to take the necessary action to give effect hereto. Executive Summary: Not Applicable Financial Implications: If approved, the write-off of taxes as contained in this report represents a gross cost of $12,318.51 with a net cost to the City of approximately $2,297.23, the balance being charged back to the Region of Durham and the School Boards. Pickering's share of the costs will be charged to the 2009 Current Budget allocation under General Government - Provision for Uncollectable Taxes. Sustainability Implications: This report does not contain any sustainability implications. Background: The Municipal Act provides the Treasurer with various tax tools regarding the administration and collection of property taxes. Under the provisions of Section 357 of the Municipal Act, reduction of taxes due to fire, demolition, exemption, assessment change or error is allowed for the current year only. Section 358 of the Municipal Act, allows for the reduction of taxes due to assessment error and this section can be applied to property taxes for the two preceding years.. Change in realty tax class can translate into lower property taxes if the property went from industrial to commercial tax class or commercial to residential tax class. Demolitions, and other physical changes to a property, such as removing or filling in a Report CS 37-09 Date: October 13, 2009 Subject: Section 357/358 of the Municipal Act- Adjustment to Taxes Page 2 10 swimming pool, or damage caused by fire result in a reduction in assessment and taxes. Two properties reflect "no recommendation" in their property taxes which is shown as having zeros in the corresponding columns. Municipal Property Assessment Corporation (MPAC) staff have investigated the tax rate change request. After completing their investigation, they have reached the conclusion that the 357 applications do not warrant a class rate change. The property owner, however, can obtain financial relief through the vacancy property tax rebate program. This program provides a reduction in property taxes of either 30 or 35%. If the property owner does not agree with MPAC's recommendation, they have the right to appeal to the Assessment Review Board under subsection (7) of the Municipal Act, 2001. Attachments: 1. Section 357/358 Adjustment to Taxes - Taxable Prepared By: Approved / Endorsed By: Tracy Parso Gillis A. Paterson Acting, Coordinator Taxation Services Director, Corporate Services & Treasurer GAP:tp Co : Chief Administrative Officer Recommended for the consideration of Pickering City Council is T as J. Quin DM CMM I Chief Administrative Officer 9! r/~ M o o ATTACHMENT# ~ TO REPORT # ~.S3 7 '1 O V . cm cm 0 O OD Q r C7 OD Lh co V~ ao m O Z co m Co O O 0) 0 t0 v f9.00 a Q N 0 cm 0 0 0 LLr) G U o L'7 th r N O W O N N O O W n~o~oon Z ao r Ln o o Lri O L W N r a 2 M Lo to 00 M LA N O O O N MO Lo OOn Ma Go N } N h' U S roooo W LA O m O r m r M NY N r ~ O O O r 0 7 z O N N 04 (D 0 Co) J O O O O O J O o C O O O O O O cc O N W H 0 0 0 0 0 O O O O O 0 W N N N N N H } Z Z W W umi m c x x Y I N F- F- a W Qa LL p o 33 O Q F- F co ww ~ ~ as z as xx U W z ~ ~ N W Z O O 2 p U. LL H LLI 7 .JI J J o LL Q w w J J O azZmm 0 z p LL 0 0 0 0 O O x U H H _Z 0 p U) N fA W W w ~4<<< S J J W W (nUU U U N O Z c H O U w 0 m co Z 0 S} co m > E H W ~ Q C LLI E O 7 S W 0 H U w ` fNW W QY G W } W> p w Z J S a S Q U (q F- - W N Z wao~SQ oQ JY7NC7 ~ a rn rn rn m m 0 0 0 0 0 • a Lnc~.c~ `v Ln O r N a ~ eit'i REPORT TO EXECUTIVE COMMITTEE PICKERIN Report Number: CS 39-09 Date: October 13, 2009 s07 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Veridian Corporation - Promissory Notes Renewal Recommendation: 1. That Report CS 39-09 of the Director, Corporate Services & Treasurer be received; 2. That the maturity dates on the Promissory Notes in the amount of $7,095,000 to Veridian Corporation and $17,974,000 to Veridian Connections Inc. be amended to November 1, 2012 at their face value with the existing terms and conditions with interest at 6% or the Ontario Energy Board Deemed Rate as indicated on the respective notes; 3. That a By-law in the form attached providing for the approval and execution of a Note Amending Agreement be passed; 4. That the Mayor and Clerk be authorized to execute the Note Amending Agreement on behalf of the City of Pickering in the form attached; 5. That the Director, Corporate Services & Treasurer be authorized to undertake any actions including negotiations or amendments to the terms and conditions necessary in order to put the foregoing into effect; and 6. That the appropriate officials at the City of Pickering be given authority to give effect thereto. Executive Summary: Veridian Corporation, at its meeting of Wednesday, September 16, 2009, approved renewing the existing Promissory Notes, totalling $25,069,000 for the City of Pickering, with the existing terms and conditions, with the exception of the interest rates, as discussed below. The new maturity date will be November 1, 2012. It is now appropriate for Council to approve the renewing of these notes and to provide the Director, Corporate Services & Treasurer the necessary authority to give effect thereto. Report CS 39-09 October 13, 2009 Subject: Veridian Corporation - Promissory Notes Renewal Page 2 108 Financial Implications: Amending the Promissory Notes will take place with the same terms and conditions as the existing notes over the last nine (9) years with the exception of the interest rates. If the Deemed Rate stays unchanged there will be no affects on the City's Current Budget. However, should the Deemed Rate decrease, say to 6%, then the City would loose approximately $400,000 in interest income annually with $35,000 being lost in 2009. This equates to an approximate 1 % tax impact. It is hoped that Veridian's profitable situation continues and the decrease in interest paid to Shareholders can be offset by using the savings to increase dividends. Sustainability Implications: This report does not contain any sustainability implications. Background: Should the Council of the City of Pickering approve the Recommendations, the amount of principal owing to the City of Pickering will remain unchanged at $25,069,000. The notes will however be extended for a further three years from October 31, 2009 to November 1, 2012 and the other terms and conditions remain unchanged with the exception of the interest rates as noted above. According to staff of Veridian Corporation, the extension will allow a level of comfort to other lenders in that the notes will not have to be repaid until a later date, thereby providing a further three years of assurance that there will not be a cash drain or a requirement for other financing. Given the world-wide decline in interest rates over the last year or so, it appeared that the current interest rate of 7.6% should be reviewed. While this rate is still within the range of appropriate rates, there is nothing directly comparable. Furthermore, Veridian management is concerned as to whether the Ontario Energy Board (OEB) will approve Veridian's rate applications with this interest rate. By coincidence the OEB's deemed rate is currently 7.62% although some anticipate a downward revision soon. As Veridian Connections is the regulated entity it was thought prudent to indicate that the rate on these notes would be the Deemed Rate. However, as Veridian Corporation is not regulated then a floor rate of 6% was included in addition to the Deemed Rate. At the stated rate of interest, this investment provides the City's highest yielding rate of return on corporate notes. At this time there is no other form of investment with the same relatively low level of risk that would provide this level of return. The City also owns approximately 41 % of Veridian providing a more than reasonable level of security. Details of the foregoing may be found in the attachments. Report CS 39-09 October 13, 2009 Subject: Veridian Corporation - Promissory Notes Renewal Page 3 109 Attachments: 1. Correspondence from D. Clark, Executive Vice President Corporate Services & C.F.O., Veridian Corporation dated September 15, 2009. 2. By-law to approve and authorize the execution of a Note Amending Agreement. 3. Note Amending Agreement. 4. Third Amended and Restated Term Promissory Note (a) Veridian Corporation $7,095,000; (b) Veridian Connections $17,974,000. Prepared By: Approved/Endorsed By: Gillis A. Paterson Gillis A. Paterson Director, Corporate Services & Treasurer Director, Corporate Services & Treasurer GAP:ks Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Co T m s J. Quinn, DMR MM '_Ir~ ~Z7 Administrative Officer I I ATTACHMENT# ~ TO REPORT# 10, ~MEM0RANDUM VEfUDt N CORPORATION To: Marty de Rond, Clerk, Town of Ajax c: M. Angemeer Julie Oram, Clerk, City of Belleville Gil Paterson, City of Pickering, Patti Barrie, Clerk, Municipality of Rob Ford, Town of Ajax, Clarington Marie Marano, Municipality of Debi Bentley, Clerk, City of Pickering Clarington, Nancy Taylor, Municipality of Clarington, From: David Clark, FCMA, C. Dir. Brian Cousins, City of Belleville Executive Vice President Corporate Services & CFO Date: September 15, 2009 Re: Promissory Note Amendment and Restatement PROMISSORY NOTE AMENDMENT AND RESTATEMENT BACKGROUND The shareholders of Veridian Corporation ("VC") currently hold promissory notes established pursuant to transfer bylaws passed under the Electricity Act, 1998, and in connection with the transfer of assets from the company's predecessor hydroelectric commissions. Each shareholder holds a note payable from VC and a second note payable from VC's subsidiary, Veridian Connections Inc. ("VCI") The current, second amended versions of the notes are dated October 1, 2006, and become due on November 1, 2009. VC has requested that the Municipalities amend the promissory notes as set forth below. TERMS OF THE OUTSTANDING NOTES The attached table lists the specifics of the outstanding promissory notes ("the Outstanding Notes"). All of the Outstanding Notes contain the same provisions as to maturity date, payment of interest, and conversion. They are otherwise identical in all respects, except for the principal amount. Principal owing on the notes is proportional to the equity interest held by each shareholder. Date: September 15, 2009 Page 2 Memo re: Promissory Note Amendment and Restatement The principal amount of each Outstanding Note remains outstanding; all of the Outstanding Notes mature on November 1, 2009 and the VC shareholders which hold all of the Outstanding Notes have agreed to amend and restate them to, among other matters, extend the maturity date to November 1, 2012. The VC shareholders have consulted with Veridian staff in connection with the proposed amendments. PROPOSED AMENDMENTS TO THE OUTSTANDING NOTES The proposed amendments to the Outstanding Notes are as follows: (i) the maturity date for all of the notes will be November 12012; (ii) the interest rates for the VCI notes will be amended from a fixed 7.6% to a rate that will vary with the deemed long-term debt rate that is set annually by the Ontario Energy Board(OEB). The initial interest rates will be set to the current OEB deemed rate of 7.62%; (iii) the interest rates for the VC notes will be amended from a fixed 7.6% to a rate that will vary with the deemed debt rate that is set annually by the OEB. Interest rates for,these notes have the additional change of an interest rate floor of 6% in that regardless of the deemed debt rate set by the OEB, the interest rate will not fall below the rate floor of 6%. The initial interest rates will be set to the current OEB deemed rate of 7.62%. The OEB annually. sets a deemed long-term interest rate for use in establishing debt costs that may be recovered from electricity distribution customers through regulated distribution rates. Veridian recommends that the notes be amended to reflect these variable, deemed interest rates as this approach will ensure a fair debt cost to customers while providing a fair return to shareholders. Although the current deemed rate is 7.62%, this rate is likely to decline as economic conditions improve. Additionally Veridian has approved a dividend plan for total interest and dividend payments. For the years 2007 to 2011, the plan provides for total interest and dividend payments of $49,001,720. To the end of 2009, Veridian will have paid a total $30,261,032 towards this five year plan. Except for the above amendments, the terms and provisions of the proposed promissory notes are identical to the terms and provisions of the Outstanding Notes. The effective date of the amendments will be October 31 st, being the last day prior to the date on which the Outstanding Notes will mature. Each Outstanding Note will be surrendered and each VC shareholder will receive a "Third Amended and Restated Term Promissory Note" in the applicable principal amount from each of VC and VCI dated October 31. 2009. Copies of the proposed Third Amended and Restated Term Promissory Note to be issued by VC and VCI are attached as well as the resolutions proposed to be passed by VC and VCI respectively to authorize these notes. .1 3L1 sY .,<<i .`5'^ `:,r 1 .,.c; lL„ t,,:, i C'v Y'1 ~:.:~:'.f, 31 s; C.ll ! i:•,~,i) .~1..~ i. ~,3 YC.: ~:c loc 112 Date: September 15, 2009 Page 3 Memo re: Promissory Note Amendment and Restatement NOTE AMENDING AGREEMENT In addition to restated and amended promissory notes, the VC shareholders will enter into a note amending agreement which will confirm the amendments to all of the promissory notes ("the Note Amending Agreement"). MUNICIPAL AUTHORIZING BYLAWS To approve and authorize the execution of the Note Amending Agreement as well as the amended and restated promissory notes, it is proposed that each municipality will pass a bylaw confirming the extension of the maturity date of the Outstanding Notes to November 1, 2012 and approving the Note Amending Agreement and the form of the applicable Third Amended and Restated Promissory Note. ;rr. i. ATTACHMENT4 TO REPORT #_L5_3q -41 THE CORPORATION OF THE CITY OF PICKERING 113 BY-LAW NO. XXX/09 Being a by-law to approve and authorize the execution of a note amending agreement made as of the 31 st day of October, 2009 in respect of second amended and restated promissory notes dated October 1, 2006 issued by Veridian Corporation and Veridian Connections Inc. in favour of The Corporation of the Town of Ajax, The Corporation of the City of Belleville, The Corporation of the Municipality of Clarington and The Corporation of the City of Pickering, and to approve the issue of third amended and restated promissory notes dated as of the 31 st day of October, 2009. WHEREAS the Electricity Act, 1998 authorized a municipality to make by-laws transferring employees, assets, liabilities, rights and obligations of the municipal corporation and to receive securities as consideration therefor and Veridian Corporation ("VC") and Veridian Connections Inc. ("VCI") issued promissory notes (the "Original Notes") dated September 28, 2001 in favour of The Corporation of the Town of Ajax ("Ajax), The Corporation of the City of Belleville ("Belleville"), The Corporation of the Municipality of Clarington ("Clarington") and The Corporation of the City of Pickering ("Pickering") due on the 31 st day of October, 2006; WHEREAS the Original Notes were amended and restated pursuant to a note amending agreement dated as of October 1, 2006 and second amended and restated promissory notes dated the 1 st day of October, 2006 due on the 1 st day of November, 2009 (the "Second Restated Notes"); WHEREAS VC and VCI have requested amendments to the Second Restated Notes including an extension of the maturity date; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING ENACTS AS FOLLOWS: 1. That Council approves the extension of the maturity date of the Second Restated Notes to the 1 st day of November, 2012; 2. That Council approves and authorizes the note amending agreement (the "Agreement") made as of the. 31 st day of October, 2009 amongst Ajax, Belleville, Clarington and Pickering, as the holders of the Second Restated Notes and VC, VCI and Veridian Energy Inc. in the form of the draft agreement presented to Council and attached hereto as Schedule "A"; 3. That Council approves the issue of the third amended and restated promissory notes (each a "Third Restated Note") by VC and VCI pursuant to the Agreement. By-law No. XXX/09 Page 2 4 -4.' , That the Mayor and the Clerk are authorized to execute the Agreement; 5. That the Clerk is authorized and directed to surrender to VC the Second Restated Note in favour of this Municipality in. the principal amount of $7,095,000 and to receive a Third Restated Note pursuant to the Agreement; 6. That the Clerk is authorized and directed to surrender to VCI the Second Restated Note in favour of this Municipality in the principal amount of $17,974,000 and to receive a Third Restated Note pursuant to the Agreement; 7. That the Clerk is authorized to affix the Corporate Seal of The Corporation of the City of Pickering to the Agreement. 8. 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 19th day of October, 2009. Dave Ryan, Mayor Debi Wilcox, City Clerk ATTACHMENT#_ TO REPORT# a 3q SCHEDULE "A" ~I 15 NOTE AMENDING AGREEMENT THIS AGREEMEN'T' made as of the 31 S` day of October, 2009. BETWEEN: The Corporation of the Town of Ajax ("Ajax") - and - The Corporation of the Municipality of Clarington ("Clarington") - and - The Corporation of the City of Pickering ("Pickering") - and The Corporation of the City of Belleville ("Belleville") (Ajax, Belleville, Clarington and Pickering are referred to collectively herein as the "Veridian Shareholders") - and. - Veridian Corporation, a corporation existing under the laws of Ontario ("VC") - and - Veridian Connections Inc., a corporation existing under the laws of Ontario ("VCI") and - Veridian Energy Inc., a corporation existing under the laws of Ontario ("VEI") (VC, VCI and VEI are referred to collectively herein as the "Veridian Group") 116 -2- RECITALS: A. VCI has previously issued one promissory note to each of the Veridian Shareholders . (collectively the "VCI Notes") issued pursuant to the applicable transfer by-laws enacted pursuant to the authority granted under the Electricity Act, 1998, which VCI Notes are outstanding as of the date hereof; B. VC has previously issued one promissory note to each of the Veridian Shareholders (collectively the "VC Notes") issued pursuant to the applicable transfer by-laws enacted pursuant to the authority granted under the Electricity Act, 1998, which VC Notes are outstanding as of the date hereof; C. The Veridian Shareholders wish to amend the VCI Notes and the VC Notes as provided herein; D. The Veridian Shareholders have consulted with the Veridian Group in connection with the proposed amendments to the VC Notes and the VCI Notes; NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the respective covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Amendment: The Veridian Shareholders will surrender forthwith to VC and VCI the existing VC Notes and VCI Notes (the VC Notes and VCI Notes hereinafter collectively, the "Predecessor Notes") (descriptions of such Predecessor Notes being set out in Appendix "A" attached hereto) and VC and VC.I will forthwith issue amended and restated promissory notes in the form attached hereto as Appendix B". There shall be eight amended and restated promissory notes (the "Amended and Restated Promissory Notes") in total. Four promissory notes will be issued by each of VC and VCI to each of the four Veridian Shareholders in the same.principal amounts as the VC Notes and VC.I Notes. For greater clarity, the amendment and restatement of the Predecessor Notes shall not extinguish the debt created pursuant to the transfer by-laws and Predecessor Notes and such debt is continued as amended and restated in the Amended and Restated Promissory Notes. 2. Counterparts: This Note Amending Agreement may be executed in any number of counterparts, each of which will be deemed to be an original and all of which taken together will be deemed to constitute one and the same agreement. -3 - I17 IN WITNESS WHEREOF the parties hereto have duly authorized and executed this Note Amending Agreement as of the day and year first above written. THE CORPORATION OF THE TOWN OF AJAX By: c/s Name: Steve Parish Title: Mayor By: c/s Name: Marty de Rond Title: Clerk THE CORPORATION OF THE CITY OF BELLEVILLE By: c/s Name: Neil Ellis Title:. Mayor By: c/s Name: Julie C. Oram Title: Clerk THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON By: c/s Name: Jim Abernethy Title: Mayor By: CA Name: Patti L. Barrie Title: Clerk -4- THE CORPORATION OF THE CITY OF PICKERING By: c/s Name: Dave Ryan Title: Mayor By: c/s Name: Debi A. Bentley Title: Clerk VERIDIAN CORPORATION By: c/s Name: Michael Angemeer Title: President By: c/s Name: Glenn Rainbird Title: Chair VERIDIAN CONNECTIONS INC. By: c/s Name: Michael Angemeer Title: President By: c/s Name: Glenn Rainbird Title: Chair 119 -5- VERIDIAN ENERGY INC. By: c/s Name: Michael Angemeer Title: President By: c/s Name: Glenn Rainbird Title: Chair 120 Appendix "A" Eight (8) Veridian Group Predecessor Notes described below. Issuer Holder Date Principal Amount I. Veridian Corporation The Corporation of the October 1", $5,550,000 Town of Ajax 2006 2. Veridian Corporation The Corporation of the October 1", $2,355,000 Municipality of 2006 Clarington 3. Veridian Corporation The Corporation of the October 1", $7,095,000 City of Pickering 2006 4. Veridian Corporation The Corporation of the October 1st, $2,206,000 City of Belleville 2006 5. Veridian Connections Inc. The Corporation of the October 1", $14,060,000 Town of Ajax 2006 6. Veridian Connections Inc. The Corporation of the October 1st, $5,966,000 Municipality of 2006 Clarington 7. Veridian Connections Inc. The Corporation of the October 1", $17,974,000 City of Pickering 2006 8. Veridian Connections Inc. The Corporation of the October 1st, $5,588,000 City of Belleville 2006 121 Appendix "B" Eight (8) Veridian Group Amended and Restated Promissory Notes attached hereto. ::O DM A\PC DOCS\TO RO 114158608\4 i ATTACHMENT #__~_TO REPORT # ~ -3q "09 122 THIRD AMENDED AND RESTATED TERM PROMISSORY NOTE Maturity Date: November 1St, 2012 Principal Amount: $7,095,000 This note amends and restates a Second Amended and Restated Promissory Note (the "Predecessor Note") issued by Veridian Corporation to the Corporation of the City of Pickering (the "Holder") on October 1", 2006 for the Principal Amount. The Predecessor Note was issued pursuant to By-law No. 6706/06 of the Holder. This note amends the terms of repayment of, and does not extinguish, the debt created pursuant to the transfer by-law (enacted pursuant to the authority granted under the Electricity Act, 1998) as set forth originally in By-Law 5586/99 of the Holder, as amended by By-Law 6706/06, and the Predecessor Note. FOR VALUE RECEIVED, Veridian Corporation (the "Corporation"), hereby promises to pay to or to the order of the Corporation of the City of Pickering, in lawful money of Canada, on November 1, 2012 (the "Maturity Date") at the principal office of the Holder, the principal amount of SEVEN MILLION NINETY-FIVE THOUSAND Dollars ($7,095,000) (the "Principal Amount") together with interest on the unpaid Principal Amount. 1. Interest Rate. Interest on the Principal Amount shall be calculated annually, not in advance, for the period from November 1St, 2009 until the Maturity Date, at a rate equal to the greater of (a) six percent (60/o), and (b) a rate equal to the Ontario Energy Board ("OEB") deemed long-term debt rate as set forth on an annual basis in the OEB's Cost of Capital Parameter Updates for Cost of Service Applications, or as the deemed long-term debt rate may otherwise be established by the OEB (the "Interest Rate"). Interest at the Interest Rate shall be payable on November 1 in each year up to and including the Maturity Date. The Corporation acknowledges that the Interest Rate payable pursuant to this note shall be. automatically amended from time to time to reflect the deemed rate established by the OEB from time to time and this note shall be automatically amended from time to time to reflect any change to the Interest Rate as determined by the OEB provided that such deemed rate is greater than six percent (6%0). Notwithstanding that the Interest Rate pursuant to this note shall be amended, the effective date of any change in the Interest Rate pursuant to this note will be as of May I" each year with interest payable on the previous Interest Rate from November I" of the previous year to April 301h of the next year, and interest payable at the amended Interest Rate from May 1".to October 31' of the current year. 2. Acceleration on Default. Upon default in the payment of any principal or interest due hereunder, or if the undersigned shall become insolvent or bankrupt or make a proposal in bankruptcy, the entire unpaid principal indebtedness owing by the undersigned to the Holder evidenced hereby and all interest accrued thereon to the date of payment shall forthwith become due and payable upon demand by the -2- 123 Holder subject to any subordination and postponement to any other financial institution or lender. 3. Ranking of this Note. This Note shall rank equally in all respects as to the payment of principal and interest hereunder with promissory notes issued as of the dates hereof to the Corporation of the Town of Ajax, to the Corporation of the Municipality of Clarington and to the Corporation of the City of Belleville (collectively the "Municipalities") described in Schedule "A" hereto (together the "Other Notes"). 4. Conversion of this Note. All (but not less than all) of the Principal Amount of this Note is convertible into fully-paid and non-assessable common shares of the Corporation based on the exchange ratio specified herein at the option of the Holder, which option may be exercised by the Holder by notice in writing to the Corporation on or before the Maturity Date. The exchange ratio for the conversion of the Principal Amount of this Note shall be on the basis that, for every $1,000.00 of Principal Amount, I fully paid and non-assessable common share of the Corporation shall be issued to the Holder. The conversion of the Principal Amount will be effected on the date detennined by the Holder following 'consultation with the Corporation. 5. Subordination. The Holder acknowledges and agrees that the obligation of the Corporation to repay the Principal Amount and the principal amount of the Other Notes is subordinated and postponed to the obligations of the Corporation from time to time to any other financial institution or lender. The Holder will execute, promptly do, deliver or cause to be done, executed and delivered all further acts, documents and things as may be required to provide for the subordination and postponement of the Holder's rights evidenced by this Note. 6. Revisions and Replacement. At the sole option of the Holder, the Maturity Date and any of the teens of this Note may be revised, changed or restated by the Holder following consultation with the Corporation. If this Note is revised, changed or restated, the Corporation may cancel and replace this Note in which case, the Holder shall forthwith surrender this Note for cancellation. 7. Sale of Shares. In the event that the Holder transfers its common shares in the capital of the Corporation (in accordance with the terms of a shareholders' agreement among the Holder, the Municipalities, Veridian Connections Inc., Veridian Energy Inc. and the Corporation dated September 28, 2001, as amended and/or restated from time to time) prior to the Maturity Date, the Note shall remain due to the Holder in accordance with its terms. 8. Note Non-negotiable and Non-assignable. The Note shall be non-negotiable and non-assignable. 124 _3_ IN WITNESS WHEREOF Veridian Corporation has caused this Note to be signed under its corporate seal by its duly authorized officers as of this 31st day of October, 2009. VERIDIAN CORPORATION By: Glenn Rainbird, Chair By: Michael Angemeer, President -4- 1 25 SCHEDULE "A" 1. Third Amended and Restated Term Promissory Note issued by Veridian Connections Inc. to the Corporation of the Municipality of Clarington in the principal amount of $5,966,000 and dated October 31, 2009. 2. Third Amended and Restated Term Promissory Note issued by Veridian Connections Inc. to the Corporation of the Town of Ajax in the principal amount of $14,060,000 and dated October 31, 2009. 3. Third Amended and Restated Term Promissory Note issued by Veridian Corporation to the Corporation of the Municipality of Clarington in the principal amount of $2,355,000 and dated October 31, 2009. 4. Third Amended and Restated Term Promissory Note issued by Veridian Corporation to the Corporation 'of the Town of Ajax in the principal amount of $5,550,000 and dated October 31, 2009. 5. Third Amended and Restated Term Promissory Note issued by Veridian Corporation to the Corporation of the City of Belleville in the principal amount of $2,206,000 and dated October 31, 2009. 6. Third Amended and Restated Term Promissory Note issued by Veridian Connections Inc. to the Corporation of the City of Belleville in the principal amount of $5,588,000 and dated October 31, 2009. ::ODM A'TCDOMTORU 1 \4158658\3 i 2.6 THIRD AMENDED AND RESTATED TERM PROMISSORY NOTE Maturity Date: November 1st, 2012 Principal Amount: $17,974,000 This note amends and restates a Second Amended and Restated Promissory Note (the "Predecessor Note") issued by Veridian Connections Inc. to the Corporation of the City of Pickering (the "Holder") on October l s`, 2006 for the Principal Amount. The Predecessor Note was issued pursuant to By-law No. 6706/06 of the Holder. This note amends the terms of repayment of, and does not extinguish, the debt created pursuant to the transfer by-law (enacted pursuant to the authority granted under the F_lectricity Act, 1998) as set forth originally in By-Law 5586/99 of the Holder, as amended by By-Law 6706/06, and the Predecessor Note. FOR VALUE RECEIVED, Veridian Connections Inc. (the "Corporation"), hereby promises to pay to or to the order of the Corporation of the City of Pickering, in lawful money of Canada, on November 1, 2012 (the "Maturity Date") at the principal office of the Holder, the principal amount of SEVENTEEN MILLION NINE IJUNDRED AND SEVENTY-FOUR THOUSAND Dollars ($17,974,000) (the "Principal Amount") together with interest on the unpaid Principal Amount. 1. Interest Rate. Interest on the Principal Amount shall be calculated annually, not in advance, for the period from November l s`, 2009 until the Maturity Date, at a rate equal to the Ontario Energy Board ("OEB") deemed long-term debt rate as set forth on an annual basis in the OEB's Cost of Capital Parameter Updates for Cost of Service Applications, or as the deemed long-term debt rate may otherwise be established by the OEB (the "Interest Rate"). Interest at the Interest Rate shall be payable on November I in each year up to and including the Maturity Date. The Corporation acknowledges that the Interest Rate payable pursuant to this note shall be automatically amended from time to time to reflect the deemed rate established by the OEB from time to time and this note shall be automatically amended from time to time to reflect any change to the Interest Rate as determined by the OEB. Notwithstanding that the Interest Rate pursuant to this note shall be amended, the effective date of any change in the Interest Rate pursuant to this note will be as of May 1st each year with interest payable on the previous Interest Rate.from November IS` of the previous year to April 30`h of the next year, and interest payable at the amended Interest Rate from May 0 to October 31st of the current year. 2. Acceleration on Default. Upon default in the payment of any principal or interest due hereunder, or if the undersigned shall become insolvent or bankrupt or make a proposal in bankruptcy, the entire unpaid principal indebtedness owing by the undersigned to the Holder evidenced hereby and all interest accrued thereon to the date of payment shall forthwith become due and payable upon demand by the Holder subject to any subordination and postponement to any other financial institution or lender. -2- 1 2 7 3. Ranking of this Note. This Note shall rank equally in all respects as to the payment of principal and interest hereunder with promissory notes issued as of the dates hereof to the Corporation of the Town of Ajax, to the Corporation of the Municipality of Clarington and to the Corporation of the City of Belleville (collectively the "Municipalities') described in Schedule "A" hereto (together the "Other Notes"). 4. Conversion of this Note. All (but not less than all) of the Principal Amount of this Note is convertible into fully-paid and non-assessable common shares of the Corporation based on the exchange ratio specified herein at the option of the Holder, which option may be exercised by the Holder by notice in writing to the Corporation on or before the Maturity Date. The exchange ratio for the conversion of the Principal Amount of this Note shall be on the basis that, for every $1,000.00 of Principal Amount, 1 fully paid and non-assessable common share of the Corporation shall be issued to the Holder. The conversion of the Principal Amount will be effected on the date determined by the Holder following consultation with the Corporation. 5. Subordination. The Holder acknowledges and agrees that the obligation of the Corporation to repay the Principal Amount and the principal amount of the Other Notes is subordinated and postponed to the obligations of the Corporation from time to time to any other financial institution or lender. The Holder will execute, promptly do, deliver or cause to be done, executed and delivered all further acts, documents and things as may be required to provide for the subordination and postponement of the Holder's rights evidenced by this Note. 6. Revisions and Replacement. At the sole option of the Holder, the Maturity Date and any of the terms of this Note may be revised, changed or restated by the Holder following consultation with the Corporation. If this Note is revised, changed or restated, the Corporation may cancel and replace this Note in which case, the Holder shall forthwith surrender this Note for cancellation. 7. Sale of Shares. In the event that the Holder transfers its common shares in the capital. of the Corporation (in accordance with the terms of a shareholders' agreement among the Holder, the. Municipalities, Veridian Corporation, Veridian Energy Inc. and the Corporation dated September 28, 2001, as amended and/or restated from time to time) prior to the Maturity Date, the Note shall remain due to the Holder in accordance with its terms. 8. Note Non-negotiable and Non-assignable. The Note shall be non-negotiable and non-assignable. 1 28 -3- IN WITNESS WHEREOF Veridian Connections Inc. has caused this Note to be signed under its corporate seal by its duly authorized officers as of this 31st day of October, 2009. VERIDIAN CONNECTIONS INC. By: Glenn Rainbird, Chair By: Michael Angemeer, President i I -4- 1 29 SCHEDULE "A" 1. Third Amended and Restated Term Promissory Note issued by Veridian Connections Inc. to the Corporation of the Municipality of Clarington in the principal amount of $5,966,000 and dated October 31, 2009. 2. Third Amended and Restated Term Promissory Note issued by Veridian Connections Inc. to the Corporation of the Town of Ajax in the principal amount of $14,060,000 and dated October 31, 2009. 3. 'T'hird Amended and Restated Term Promissory Note issued by Veridian Corporation to the Corporation of the Municipality of Clarington in the principal amount of $2,355,000 and dated October 31, 2009. 4. Third Amended and Restated Term Promissory Note issued by Veridian Corporation to the Corporation of the Town of Ajax in the principal amount of $5,550,000 and dated October 31, 2009. 5. Third Amended and Restated Term Promissory Note issued by Veridian Corporation to the Corporation of the City of Belleville in the principal amount of $2,206,000 and dated October 31, 2009. 6. Third Amended and Restated Tenn Promissory Note issued by Veridian Connections Inc. to the Corporation of the City of Belleville in the principal amount of $5,588,000 and dated October 31, 2009. ::ODM A\YCDOCS\TORO 1\4158694\7 130 City REPORT TO EXECUTIVE COMMITTEE PICKERING Report Number: OES 45-09 Date: October 13, 2009 From: Everett Buntsma Director, Operations & Emergency Services Neil Carroll Director, Planning & Development Subject: 407 East Final Individual Environmental Assessment (FIEA) and Preliminary Design Study - August 2009 City of Pickering Comments File: D-7400 Recommendation: 1. That Report OES 45-09 of the Director, Operations & Emergency Services and the Director, Planning & Development, regarding the 407 East Final Individual Environmental Assessment (FIEA) and Preliminary Design Study, August 2009, be received; 2. That Council endorses the Technically Preferred Route (TPR) consisting of the Highway 407 East Mainline and the two North-South Freeway "Links" connecting Highway 401 in West Durham and in East Durham (See Attachment 1); 3. That Council supports the transitway corridor, the locations of transitway stations and the maintenance yards within Pickering in principle, as the basis for the submission of a future separate environmental assessment; 4. That Council requests the Ontario Ministry of Transportation (MTO) to work with City staff to determine alternative strategies for the seven cultural heritage properties in Pickering proposed to be displaced in the FIEA Report (See Attachment 2); 5. That Council requests the MTO to consider a better location or retain flexibility to re- orient the proposed interchange at Westney Road to accommodate a more easterly alignment for the Greenwood By-Pass on Westney Road, should the Region of Durham's Environmental Assessment (EA) for the Greenwood By-Pass support such an alignment; 6. That, as previously requested in Report No. OES 07-09, dated January 12, 2009 (See Attachment 3), Council requests all proposed grade separations within Pickering include raised sidewalks (1.8 metre minimum width) on both sides of the roadways, and dedicated bicycle lanes (1.5 metre minimum width) on the outer lanes on both sides of the roadways at MTO expense; Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) 131 and Preliminary Design Study - August 2009 Page 2 7. That Council requests the MTO to install a gateway feature at Lake Ridge Road in Pickering as a component of Community Value Plan (CVP); 8. That Council requests MTO to relocate and replace ball diamonds, play grounds, and parking, etc. located at Don Beer Memorial Park north of Highway 407 in the Hamlet of Brougham which is being significantly impacted by the proposed alignment, and that MTO be further requested to work closely with the City of Pickering and the Federal Government to find a suitable location, all at MTO expense; 9. That Council endorses the comments and recommendations made by staff to the MTO, dated August 4, 2009 (See Attachment 4) and further requests MTO to incorporate them into the FIEA Report; 10. That Council endorses the concerns raised by staff on the FIEA Report to the MTO in Appendix 3 of Report OES 45-09 and further requests MTO to incorporate them into the FIEA Report; 11. That MTO revise the FIEA to take into account the data and status updates contained in Appendix 4 of Report OES 45-09; 12. That following the approval of FIEA Report, Council requests MTO to work closely with City of Pickering staff during the subsequent design and implementation phases of the 407 easterly extension; 13. That a copy of the Report OES 45-09 be forwarded to the MTO, the 407 East EA Project Team, Region of Durham, all Durham area municipalities, and Transport Canada; and 14. Further, that the City Clerk be requested to forward Report OES 45-09 and the October 13, 2009 Executive Committee decision on this matter to Ontario Ministry of Environment (MOE) by the required deadline of October 16, 2009 and forward Council's decisions on this matter following the Council meeting of October 19, 2009 to MOE. Executive Summary: The final phase of the Individual Environmental Assessment (IEA) focused on the preparation of FIEA Report to document the process, results and recommendations of the Highway 407 East EA Study. The FIEA Report released by the MTO was received by City of Pickering on August 28, 2009. Comments were requested to be provided to the MOE by October 16, 2009. The TPR and recommended design presented in FIEA Report includes the easterly extension of Highway 407 Mainline from Brock Road in Pickering to Highway 35/115 in CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) 132 and Preliminary Design Study - August 2009 Page 3 Clarington (approximately 50 kilometers) and the two North-South Freeway "Links" (approximately 10 kilometers each) connecting to Highway 401 in West Durham and in East Durham, while the transitway component and the support facilities within the corridor have been developed at a conceptual design level and are subject to future Class EA studies. However, the design, work completed by the Project Team for both the highway and transitway components of the corridor and the associated support facilities has been to a significant level of detail to confirm the feasibility of the proposed infrastructure. Release of the FIEA Report provides the City of Pickering an opportunity to provide input to the MOE on the proposed alignment and specific design elements in Pickering for the proposed Highway 407 - East Extension. These comments follow Council's earlier comments (see Report OES 07-09, Attachment 3), in which Council supported the TPR (including interchanges at Brock, Westney, Salem and Lake Ridge Roads) and requested that all grade separations on Highway 407 Mainline in Pickering include sidewalks of 1.8 metres width on both sides of all bridge crossings and bike lanes of 1.5 metre width on both sides of all interchanges at MTO cost, among other requests. Presentations to Committees of Council by MTO and their team of consultants in March and July 2009 clarified that the proposals for Highway 407 include 1.5 metre dedicated bike lanes at Brock and Lake. Ridge Road interchanges and 1.5 metre sidewalks at Brock Road, Lake Ridge, Westney and Salem interchanges and at the Kinsale/Audley Road bridge crossing in Pickering, to be constructed at MTO expense and that, although sufficient land would be acquired and bridge/interchange designs will accommodate potential future widening for the other bike lanes, sidewalks and sidewalk widening, such improvements would only occur on a cost-shared basis with municipalities. In addition, other comments raised by Members of Council at the July 6, 2009 presentation respecting interchange locations at Westney and Salem Roads, treatment of cultural heritage resources and road tolling-for Highway 407 were conveyed to MTO by staff. Despite Pickering's requests, the FIEA Report failed to record and address the requests made by the City of Pickering. Financial Implications: There are no direct financial implications to the City of Pickering with respect to adopting the recommendations of this Report. The construction of pedestrian sidewalks and on-road dedicated bicycle lanes on all the grade separations should be an integral part of the provincial investment. However, should MTO not fund the total costs of such items, or not implement the cultural heritage recommendations of Report OES 45-09, the City of Pickering may have to consider such funding costs in the future. Sustainability Implications: Construction of the easterly extension of Highway 407 (with the proposed pedestrian sidewalks and on-road dedicated bicycle lanes on all the bridge COR00227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) and Preliminary Design Study - August 2009 Page 4 33 crossings/ grade separations) will not only strengthen the economy, but the recommended treatments for Highway 407 crossings will promote healthier lifestyles through active transportation modes for the future residents of Pickering. Background: 1.0 The Individual Environmental Assessment Process The background to the IEA process, the consultation process followed by the IEA Project Team, the previous comments provided by the City Staff and Members of Council of Pickering and responses by the IEA Project Team/MTO staff to date are summarized in Appendix 1 attached to. Report OES 45-09. Appendix 1 highlights comments on the location proposed for Highway 407/Westney Road Interchange, protection for the Rogers Homestead (3805 Salem Road) and other cultural heritage structures, provision and funding responsibilities for sidewalks and bike lanes at grade separations and proposed tolling of the Highway 407 East expansion. The Final 407 FIEA Report and Preliminary Design Study were received by the City of Pickering on August 28, 2009 from the MTO. The public was advised that the FIEA Study could be viewed at the City Clerk's Office and Pickering Central Library, in Pickering. Comments were requested to be provided to the MOE by October 16, 2009. The FIEA Report does not include any of the revisions requested by the City of Pickering or acknowledge any of the issues raised by City Staff or Members of Council. 2.0 Findings & Recommendations of the FIEA The findings and recommendations contained in the FIEA Report and Preliminary Design Study for the Highway 407 East Extension within Pickering are summarized in Appendix 2 attached to Report OES 45-09. The summary sets out what is proposed for the Highway 407 East Mainline and the transitway corridor across north-east Pickering and for each road crossing, road closure and interchange and provides a basis for following the discussion of the concerns of Pickering in the following section. 3.0 Discussion on Pickering Concerns 3.1 Proposed Westney Road Interchange on Highway 407 Mainline in Pickering: At several of the earlier meetings, City staff requested that decisions on the location and orientation of the interchange at Westney Road remain flexible until such time as an acceptable alignment of the proposed Westney Road by-pass of the Hamlet of CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) 134 and Preliminary Design Study - August 2009 Page 5 Greenwood has been accepted by a Region of Durham Environmental Assessment (EA) on this matter. The Region of Durham's EA Study for the Greenwood By-Pass on Westney Road is currently underway. On August 4, 2009 the City of Pickering reiterated their position to the MTO that the location for the proposed interchange of Westney Road on the Highway 407 Mainline has inclined the Durham Region to shift the alignment of the Greenwood By-Pass on Westney Road more westerly from the alignment shown in the City of Pickering and Region of Durham Official Plans (See Attachments 4, 7 and 8 respectively). This may have a significant negative impact on residences in the Greenwood community. Consideration of City Comments - Received.from MTO (August 26, 2009): MTO recognizes the potential and the ongoing EA Study of Greenwood By-Pass on Westney Road by the Region of Durham. Further, MTO has indicated that as there is no approved EA for the realignment of Westney Road (Greenwood By-Pass), the planning and preliminary design work for the Highway 407 FIEA Study requires the Westney Road Interchange to be sited on the existing Westney Road alignment. MTO in its response to the City of Pickering (See Attachment 9) has further indicated that: "The Recommended Design for the Westney Road Interchange is fixed given the proximity of the adjacent interchanges. However, there is some flexibility with respect to the design of the south side of the interchange to accommodate a more easterly realignment of Westney Road for the Greenwood By-Pass." City of Pickering's Position on MTO's (August 26, 2009) Reply: At this point, the City of Pickering does show its support on the Proposed Interchange sited on the existing Westney Road alignment. Staff continues to urge.that the MTO consider the City's request and the Highway 407 East FIEA be amended to retain flexibility to re-orient the angle of interchange of Westney Road on Highway 407 Mainline to better accommodate a more easterly alignment for the Greenwood By-Pass, should the Region's EA for the Greenwood By-Pass support such an alignment. 3.2 Cultural Heritage Impacts: The FIEA includes an assessment of the impacts of the proposed alignment of the Highway 407 East extension on the individual farmsteads, residences, roadscapes and viewsheds. Within Pickering, seven individual residences or farmsteads are identified for displacement in the REA to accommodate the proposed transportation corridor, interchanges and maintenance facility, including • 3500 Sideline 16; • 3675 Sideline 14; • 3680 Sideline 14; CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) and Preliminary Design Study - August 2009 Page 6 1 35 • 3805 Salem Road (Wing Rogers Farm); • 3720 & 3750 Salem Road; • 4005 Kinsale Road; and, • 3860 Lake Ridge Road None of the foregoing properties have previously been assessed for their heritage values by the City of Pickering. None are designated under the Heritage Act. However, in spring 2009, City officials became aware that the MTO had commissioned a "Heritage Assessment of 3805 Salem Road" conducted by Archaelogix Inc., in 2003, which contained strong recommendations to protect the Rogers homestead with recommendations that the buildings be left in situ and be protected by a heritage easement or designation under the Ontario Heritage Act. Despite the strong recommendations of the Archaeologix assessment, the FIEA . proposes an alignment for Highway 407 that will displace the Rogers homestead buildings. Other recommendations, less preferred by the Archaeologix assessment, include moving all the buildings together, perhaps to a museum, move individual buildings separately, or, if demolitions are necessary, to salvage an extensive list of materials from the four buildings. Consideration of City Comments - Received from MTO (August 26, 2009): MTO acknowledges that the heritage assessment of #3805 Salem Road was carried out and completed for this property. MTO clarified in its response to the City of Pickering (See Attachment 9) that all potential options regarding this heritage property will be reviewed in conjunction with Pickering Staff to determine the adequate built heritage strategy for this property. MTO in its response to the City of Pickering's August 4, 2009 comments have further indicated that: "The EA Report includes a commitment to "Develop a 407 East Built Heritage Relocation Strategy in subsequent design phases" which will identify opportunities for relocation and/or adaptive re-use. Consultation with municipalities will be ongoing through subsequent design phases and will include discussions regarding displaced built heritage resources." City of Pickering's Position on MTO's (August 26, 2009) Reply: At the July 6th Joint Committee Meeting, Pickering Councillors suggested to MTO officials who were present that the proposed alignment of Highway 407 East be changed to preserve the Rogers Homestead or to move the Salem Road interchange further east to avoid disruption to the cluster of buildings on the Rogers property, or to relocate the buildings at MTO's cost. CORP0227-07/01 revised i Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) 36 and Preliminary Design Study - August 2009 Page 7 City staff subsequently wrote to MTO officials and requested that MTO discuss alternative strategies for all seven cultural heritage residences or farmsteads proposed to be displaced by the 407 with City staff before final decisions on their disposition are reached (See Attachment 4). Despite the Councillors' requests and the written request regarding cultural heritage matters, the FIEA not only failed to satisfy the requests, it also failed to even record that the meetings occurred or that any requests were made by the City of Pickering. The City is disappointed that the FIEA does not record the City's comments and is concerned that the REA does not convey these comments to the Minister of the Environment. A member of the Pickering Heritage Advisory Committee has now evaluated the heritage merits of the seven Pickering residences or farmsteads proposed to be displaced and has concluded that: • 3805 Salem Road, 3720 & 3750 Salem Road and 4005 Kinsale Road have `significant historical value' and 3860 Lake Ridge Road, 3500 16th Sideline and 3675 14th Sideline have `historical value'. 3.3 Concrete Sidewalks & Bicycle Lanes: As previously outlined in Report OES 07-09, endorsed by Council on January 12, 2009, the City of Pickering is reiterating its request for 1.5 metre wide dedicated bike lanes and 1.8 metre wide sidewalks to be designed and constructed at all interchanges and grade separations of Highway 407 East proposed in Pickering at MTO expense. Consideration of City Comments - Received from MTO (August 26, 2009): Within Pickering, the design for sidewalks and bicycle lanes as proposed in Final FIEA by MTO and the Project Team is as follows: • Sidewalks & Bicycle Lanes on Brock Road & Lake Ridge Road • Sidewalks on Highway #7, Westney Road, Salem Road and Kinsale Road with cyclists movement accommodated within 1.5 metre shoulder area; and • Sideline 14 will have a shoulder area which will accommodate pedestrian and cyclist movement Despite several earlier requests by the members of Council and staff, MTO's response on the cost sharing was as follows: "The additional structure width for sidewalks and bike lanes will be the subject of cost sharing discussions with the City and the Region during the detailed design and implementation phases of the study. " CORP0227-07/01 revised I i Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) and Preliminary Design Study - August 2009 Page 8 137 MTO also confirmed in their reply (See Attachment 9) that the text in the Final EA Report has been extended and read as: "Sidewalk and bike lane requirements at crossing road structures will be confirmed, in consultation with the Region and local municipalities, during subsequent design phases. This will include a review of proposed locations as well as proposed sidewalk and bike lane widths." City of Pickering's Position on MTO's (August 26, 2009) Reply: The City of Pickering should not be burdened with any costs of creating active transportation facilities on the Province's infrastructure. Members of Council were disappointed that the Province's most significant infrastructure project in Durham Region is not supporting Provincial Policies such as the Ontario Accessibility Act, the Provincial Growth Plan for the Greater Golden Horseshoe and the Metrolinx Transportation Plan. 3.4 Concerns raised by City staff on the FIEA Report: Some other concerns are raised by city staff respecting the FIEA Report, which are addressed in Appendix 3 to Report OES 45-09. 3.5 Data Updates on the FIEA Report: A number of sets of research data were collected early in the EA study and should be updated in the FIEA Report. Suggested updates are addressed in Appendix 2 to Report OES 45-09 Appendices: Appendix 1 - Background of the IEA Study Appendix 2 - Findings and Recommendations of the FIEA Report Appendix 3 - Concerns raised by city staff on the FIEA Report Appendix 4 - Data update on the FIEA Report Attachments: 1. Technically Preferred Route 2. Map - Heritage Properties identified in the corridor (within Pickering) 3. City of Pickering's Report No. OES 07-09 4. City of Pickering's (August 4, 2009) Letter to MTO addressing Members of Council Concerns 5. MTO's Response to City of Pickering's Report No. OES 07-09 6. Plan - Illumination Requirement 7. City of. Pickering Official Plan (Schedule II-Ed.5, Transportation System) 8. Region of Durham Official Plan (Transportation System) 9. MTO's Response to City of Pickering's (August 4, 2009) Letter to MTO 10. Map - Sidewalks/Bicycle Lane Locations at Crossing Roads 11. Typical 10-Lane Section for 407 Mainline 12. Recommended Preliminary Design of Highway 407 Mainline within Pickering 13. Technically Recommended Route within Pickering & West Durham Link CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) and Preliminary Design Study - August 2009 Page 9 138 Prepared By: Approved/En rsed By: Kashif Shaikh, M.Eng, P.Eng. Evere untsm Coordinator, Transportation Engineering Director, Operations & Emergency Services Steve Gaunt, MCIP, RPP Neil Carr IP,,APP Principal Policy Planner Director, Planning & Development Richard . Holbo , P. Eng. Divisi Head, M nicipal Property & Engineering RH:ks Copy: Chief Administrative Officer Recommended for the consideration ;of Pickering City u cil 1-e~,1,7 o as J. Quinn, Chief Administrative MR; MM III inistrative Officer CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) and Preliminary Design Study - August 2009 Page 101 3 9 APPENDIX - 1 of Report OES 45-09 BACKGROUND OF THE IEA STUDY The Individual Environmental Assessment Process of Highway 407 East Extension (From Brock Road in Pickering to Highway 35/115. in Clarington) (i) Need & Justification: To address the.long term transportation needs in the Region of Durham and surrounding areas, MTO commenced the EA for the easterly extension of Highway 407 in the year 2002. The Terms of Reference (ToR) for the Highway 407 East IEA were approved by the MOE in January 2005. (ii) Provincial & Federal Process: In addition to addressing the requirements of the Ontario Environmental Assessment Act (OEAA), the FIEA Report is also designed to satisfy the requirements of the Canadian Environmental Assessment Act (CEAA). (iii) Technically Recommended Route (TRR): In 2007, MTO and their Project Team presented the Technically Recommended Route (TRR) to the Municipal Technical Advisory Group (MTAG). The TRR (See Attachment 13 for TRR within Pickering) included the Highway 407 Mainline, both West and East Durham links connecting to Highway 401, and all proposed interchange locations along with recommendations for realignment of some roads. (iv) Consultation during the IEA Study: The Highway 407 IEA Study was initiated in January 2005, following the approval of 407 East EA ToR by the MOE in 2005. Since 2005,- MTO retained the following.multi-disciplinary team of experts to carry out the study: (i) AECOM (formerly TSH), (ii) McCormick Rankin Corporation, (iii) URS Canada Inc., (iv) AECOM (formerly Gartner Lee Limited), (v) Ecoplans Limited, (vi) RWDI, (vii) Meridian. Planning Consultants, (viii) DBH Soils, (ix) AS[, (x) Unterman McPhail, (xi) Parish Geomorphic, (xii) Thurber Engineering, and (xiii) Golder Associates Ltd. With an extensive consultation program in place, the Project Team: • held a number of meetings with municipal and regulatory agency staff; • held a total of 5 Public Information Centers (PIC's) within Durham Region to inform and receive public feedback; and • organized a series of workshops to facilitate the generation of a CVP to obtain feedback from stakeholders and residents in communities adjacent to the proposed 407 alignment, and input into design elements. City of Pickering staff have attended the municipal meetings and all the PIC's, and subsequently provided feedback to the 407 East EA Project Team and updated the Members of Council throughout the EA study process. CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) 140 and Preliminary Design Study - August 2009 Page 11 In addition, at municipal stakeholder meetings and specific meetings held in Pickering, staff has always urged the Project Team to reduce the number of road closures and include sidewalks and dedicated bike lanes on the proposed interchanges and local road crossings within Pickering, where none had been originally proposed. (v) Report No. OES 07-09: At its January 12, 2009, Meeting, Pickering Executive Committee and later Council endorsed Report No. OES 07-09 (See Attachment 3), and forwarded it to the Project Team in which the following was summarized: • the Technically Preferred Route (TPR) for the easterly extension of Highway 407, including the. transit way corridor/facilities and the north-south freeway links connecting to Highway 401; • the proposed preliminary design, road closures, transitway facilities and maintenance facilities; • input/comments from City Staff on the preliminary design, road closures and transit facilities; • details on the revised preliminary design by the 407 East Project Team, based on City staff's feedback; • project updates, next steps, etc Report No. OES 07-09 supported the Highway 407 East TPR for the easterly extension of Highway 407, including the transitway corridor/facilities and the west and east links connecting Highway 401, with the following specific revisions: • that the preliminary design be revised to include raised sidewalks (1.8 metre wide) and dedicated bicycle lanes (1.5 metre wide) for all 407 East bridge crossings in Pickering; that MTO acquire and transfer to the City of Pickering sufficient land for 18 metre-radius cul-de-sacs for the candidate roads for permanent road closures; • that MTO minimize environmental impact on surrounding properties within the study corridor and seek amicable resolution of property acquisitions with affected property owners; and, • that MTO consider a better location for the highway maintenance facility (proposed at the north-east quadrant of 'Salem Road interchange) that does not conflict with potential urban development plans of the City. (vi) MTO's Response to the Report No. OES 07-09: MTO responded in writing to the City of Pickering's recommendations (See Attachment 5) as follows: • Sidewalks & Bicycle Lanes: MTO's proposal for sidewalk and bike lane facilities within this IEA study is to construct 1.5 metre wide dedicated bike lanes for the Brock Road and Lake Ridge Road interchanges only, and 1.5 metre wide sidewalks at Brock Road, Lake Ridge Road, Westney Road, and Salem Road CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) and Preliminary Design Study - August 2009 Page 12 141 interchanges and the Kinsale/Audley grade separation at MTO expense. Also, MTO indicated that sufficient land would be acquired and bridge/interchange design would include potential for widening to accommodate bike lanes, sidewalks and sidewalk widening to 1.8 metres wide on a cost-shared basis with the municipalities. • Land Transfer on Permanent Road Closures: MTO agreed to acquire and transfer sufficient land to the City of Pickering for 18 m radius cul-de-sacs at the proposed road closure locations. • Property Acquisitions: MTO indicated that it would seek amicable agreements to acquire needed property from affected property owners. MTO may also need to expropriate if agreements could not be reached. • Highway Maintenance Facility: MTO agreed to move the proposed highway maintenance facility from the north-east quadrant to the south-east quadrant of the Salem Road Interchange. (vii) Presentation by MTO Staff to Pickering's Executive Committee (March 2009): MTO staff provided an update to Executive Committee reiterating their positions set out in the earlier letter (See Attachment 5) on; • the recommended preliminary design of the TPR and supporting facilities/infrastructure; • crossing road treatment strategies, proposed sidewalk and bicycle lane locations on highway interchanges and crossings, and permanent road closures; • an update on the final round of PIC, preparation of EA Report and CEAA screening document, implementation strategies and next steps; • an update on the CVP, information on water course crossings, storm water management strategy, illumination requirements and impact assessments within the corridor; and, • the announcement by Province that it will retain ownership and control of Highway 407 easterly extension, and it will be tolled to pay construction and maintenance costs. (viii) Draft FIEA Report: In accordance with the ToR for this Project, the Draft IEA Report was presented to staff at a working session on June 15, 2009. City staff was present and took part in the discussions. Comments on the Draft FIEA Report were requested by July 20, 2009. (ix) Presentation by Project Team to the Executive Committee (July 2009): The Project Team attended City of Pickering's Joint Planning & Executive Committee Meeting on July 6, 2009 and updated Members of Council on the Draft IEA Report proposals, the next steps and implementation strategies for the Project. CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) 142 and Preliminary Design Study -,August 2009 Page 13 Although Council adopted the staff recommendation to endorse the TPR in January 2009, individual members of Council raised a number of new concerns at the July 6tn meeting, including: • the location and orientation of the proposed Interchange at Westney Road should be flexible to accommodate the location of the proposed Greenwood By-Pass of Westney Road that is to be determined by a Region of Durham Environmental Assessment; • the proposed alignment of Highway 407 Mainline be changed to preserve the historic 3805 Salem Road (Rogers Homestead), to move the Salem Road interchange further east to avoid disruption to the cluster of buildings on the Rogers property, or to relocate the buildings at MTO's cost; • the City of Pickering should not be burdened with any costs of providing active transportation facilities (i.e,: sidewalks and bike lanes) on the Province's infrastructure. Members of Council raised concerns about the suggested cost sharing for sidewalks and bicycle lanes on the proposed interchanges and bridge crossings; • strongly opposing tolling on Highway 407 East Extension and the North-South Links on the basis that there are a significantly smaller number of roads entering and exiting Durham Region compared to the number of roads entering and exiting the Western GTA from the Central GTA, many of which were provincially funded and currently have no tolls. However it was noted tolls could be used to fund upfront installation of 1.8 metre wide sidewalks and dedicated bicycle lanes. (x) Staff Comments on MTO's Presentation: Following the presentation, a letter was also sent to MTO by City staff on July 20, 2009 (revised August 4, 2009) regarding the . immediate concerns raised by the members of Council on the Highway 407 easterly extension within Pickering (See Attachment 4). CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) and Preliminary Design Study - August 20.09 Page 1413 APPENDIX - 2 of Report OES 45-09 FINDINGS & RECOMMENDATIONS OF THE FIEA REPORT 407 East Extension (from Brock Road in Pickering to Highway 35/115 in Clarington) (i) Recommended Design for Highway 407 Easterly Extension: The FIEA includes a recommended design for the transportation corridor and associated support facilities, as summarized below: • Highway 407 Mainline from Brock Road to Highway 35/115 (approximately 50 kilometers); • Two north-south freeway "links" connecting the proposed extension to Highway 401, one in West Durham and the other in East Durham (approximately 10 kilometers each), • Protection for a dedicated transitway corridor (approximately 60 metres in width plus transitway stations); • Two highway maintenance facilities, one at the south-east quadrant of Salem Road in Pickering and another in Oshawa; • Two transitway maintenance facilities, one in Ajax and the other in Whitby, none in Pickering; • Two commercial vehicle inspection facilities, one between Salem Road and Kinsale Road (east bound direction) within Pickering and the other in Oshawa; • Three truck lay-bys on the north-south freeway "links", none in Pickering • A total of 5 Gateway Features are proposed to be installed in this Project, one in Brougham (Pickering). (ii) The Recommended Design within City of Pickering: In Pickering, the Recommended Design for the transportation corridor includes 4 arterial road interchanges, 3 bridge crossings of roads, 3 permanent local road closures, 4 transitway stations, 1 commercial vehicle inspection station and 1 highway maintenance facility. A detailed section-specific description of the recommended designs are provided below: (iii) Interchange Configurations: The following are details for the proposed arterial road full interchanges within Pickering: PROPOSED ULTIMATE SIDEWALKS BIKE ARTERIAL ROAD FOR No. OF LANES LANES FULL INTERCHANGE Realigned Brock Road 6 Yes Yes Westney Road 6 Yes No Salem Road 6 Yes No Lake Ridge Road 6 Yes Yes CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) 144 and Preliminary Design Study - August 2009 Page 15 In response to the City staff's recommendations and concerns raised in several MTAG Meetings, the Project Team has made the following revisions to the interchange configurations in-Pickering: • Realigned Brock Road Interchange: Shifted south, in order to accommodate the realignment of the highway, to accommodate the existing irrigation pond on the Dutch Master Nursery property located on 3735 Sideline 16. • Lake Ridge Road/Highway 407 Mainline Interchange: At the fourth round of PIC's the interchange at Lake Ridge Road/Highway 407 Mainline was proposed to be designed as a simple "Diamond" configuration (requiring left or right turns to access the freeway ramps from Lake Ridge Road). However after City Staff's feed-back an improvement to the Lake Ridge Road/Highway 407 Mainline interchange design has resulted a full interchange "Parclo A4" configuration. This improved design of the interchange should accommodate increased traffic more efficiently than the previously. designed "Diamond" configuration. (iv) Grade Separations: The FIEA includes a recommended design providing structure openings at locations where Highway 407 corridor passes over/under crossing roads that will be large enough to accommodate an additional expansion of the roadway (e.g. road widening and sidewalks) beyond the planned road improvement within the 2031 planning horizon. The following are the proposed treatments at grade separations within Pickering: CROSSING PROPOSED TREATMENT ROAD STRUCTURE ULTIMATE SIDEWALKS BIKE N,o. OF LANES LANES Highway 7 Crossing Road 6 No No (East of Brock under Highway 407 Road) Highway 7 is to be realigned to the north, as a four lane highway having a signalized intersection at the Realigned Brock Road Sideline 14 Crossing Road 2 No No over Highway 407 Kinsale Road Crossing Road 2 Yes No over Highway 407 CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) and. Preliminary Design Study -August 2009 Page 16 145 (v) Permanent Road Closures: Existing Brock Road (Regional), Paddock Road & Sideline 4 (local) are the roads in Pickering proposed to be closed. Brock Road is proposed to be realigned to the east as already approved by the Region of Durham's Brock Road EA Study. Additionally, cul-de-sacs will be provided north and south of Highway 407 for all of the roads proposed to be permanently closed within Pickering, and in'order to provide appropriate turning circles for maintenance, emergency and other vehicles, MTO has agreed to transfer sufficient land to the City,of Pickering for each road that is proposed to be closed (See Attachment 5). MTO will be required to replace the existing material in kind in accordance with the current standards for all proposed roads within Pickering where permanently closed and/or re-aligned. (vi) Realignment of Sideline 16: The Recommended Design proposes realignment of Sideline 16 (north of Highway 7 and with no sidewalks or bicycle lanes) connecting to the realigned segment of Highway 7, west of Highway 407. Sideline 16 will terminate as a T-Intersection. The southern leg of Sideline 16 will meet.the realigned Brock Road at a T-Intersection with the realigned Brock Road south of Highway 407. (vii) Transitway Stations: Three transitway stations are proposed in Pickering, as follows: • South-west quadrant of realigned Brock Road interchange; • South-west quadrant of the Westney Road interchange; and • South-west quadrant of the Salem Road interchange; (viii) Highway Maintenance Facility: A highway maintenance facility was initially proposed in the northeast quadrant of Salem Road Interchange in Pickering. Council requested a more suitable location that does not conflict with potential urban development plans for these lands. Consequently, the FIEA proposes to relocate the highway maintenance facility to the southeast quadrant of the Salem Road Interchange. (ix) Maintenance or Re-routing of Trans Canada Trail: Paddock Road, west of the Greenwood community is designated as part of the Trans Canada Trail system. The proposed design would allow for a north-south trail connection at Paddock Road in future and the trail will be maintained through the East Duffins Creek structure situated immediately east of Paddock Road. The Project Team has indicated that the need for signage for the trail will be determined during subsequent phases of detail design. (x). Don Beer Memorial Park: Community and Recreational facilities, specifically ball diamonds, play grounds, a parking lot, etc. located at Don Beer Memorial Park near Brougham, are significantly impacted by the proposed highway mainline. CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) 146 and Preliminary Design Study - August 2009 Page 17 (xi) Dutch Master Nursery Encroachment: The earlier proposed transportation corridor encroached on the southern area of the 3735 Sideline 16 (Dutchmaster Nursery). As requested by the Council members and City staff, the MTO and Project Team in conjunction with the owner of Dutchmaster Nursery made a refinement to the 407 corridor in the vicinity of Sideline 16 which minimized impacts to the business, specifically the irrigation pond. With the TRR presented in the Final. FIEA, the pond and the commercial buildings associated with the nursery are not encroached upon. (x ii) Kinsale Hamlet: The TRR for Highway 407 Mainline is in close proximity to the Kinsale hamlet creating a barrier effect between Kinsale and access to areas north of the transportation corridor. (xiii) Cultural Heritage Landscapes & Built Heritage Resources: Within Pickering a total of seven individual residences or farmsteads are identified for displacement in the FIEA to accommodate the proposed transportation corridor, interchanges and maintenance facility (See Attachment 2), including • 3500 Sideline 16; • 3675 Sideline 14; • 3680 Sideline 14; • 3805 Salem Road (Wing Rogers Farm); • 3720 & 3750 Salem Road; . 4005 Kinsale Road; and, • 3860 Lake Ridge Road (xiv) Cross Sections: Although the initial number of lanes to be provided on opening day will be further determined through subsequent design phases of the project, the FIEA is seeking approval for the 2031 lane requirements which includes ten lanes for the Highway 407 Mainline in Pickering and six lanes for the north/south West Durham Link connecting Highway 401 (See Attachment 11). Some key elements of the cross section include: • Closed median: Closed Median is a concrete barrier and storm sewer system in the median for a 10-lane and 8-lane section of the 407 Mainline and the West Link, • Open Median: Open Median is no concrete barrier with ditches in the median for a 6-lane section of the 407 Mainline and the East link • Right-of-way's Right-of-way is being protected for High Occupancy Vehicle Protection: lanes; and the minimum right-of-way width of 110 metre for the mainline corridor and 60 metre for the transitway corridor is being protected in this IEA CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) and Preliminary Design Study - August 2009 Page 18 1 4 7 (xv) Illumination: The illumination requirements for opening day will be determined through subsequent design phases. However the Preliminary Design in the FIEA Report proposes the following 2031 illumination standards within Pickering: (See Attachment 6): • Full illumination on the mainline; and • Full illumination in the vicinity of freeway to freeway interchanges (xvi) Construction Methods & Staging: MTO and the Project Team have considered the Construction Methods and Staging at a conceptual level as part of the FIEA Study. Detailed staging plans will be developed during subsequent design phases. i CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment$1EA) and Preliminary Design Study - August 2009 Page 19 1--4 APPENDIX - 3 of Report OES 45-09 CONCERNS RAISED BY CITY STAFF ON THE FIEA REPORT 407 East Extension (from Brock Road in Pickering to Highway 35/115 in Clarington) Section-specific general concerns raised by city staff on the FIEA Report are provided below: (i) Functional Design Elements for Road Crossing Structures: At various municipal stakeholder meetings, Pickering staff provided input to the Project Team on the cross- sections of road crossing structures passing over and under Highway 407 Mainline (within Pickering) City of Pickering recognizes that the land use will significantly change because of the easterly extension of Highway 407. This will change the demands on the crossing roads within Pickering. These road crossings within Pickering (of the Highway 407 Mainline) may also lead to higher Average Daily Traffic (ADT). City Staff is therefore requesting MTO to upgrade road segments between Highway #7 and Seventh Concession Road to a bituminous surface. Upgrading these roads to a paved/bituminous surface will not only bring the gravel road up to the City's standard but will also provide enhanced safety to the road user. This will further reduce the need for dust control and maintenance cost. Therefore the MTO and Project Team are requested to investigate the technical and economical feasibility including environmental and social impact (if any) of upgrading these existing gravel roads to a bituminous surface. Based on this, MTO is requested to prepare and include detailed cross sections with all active transportation facilities, and detailed engineering design for these roads, and provide the City Staff an opportunity to review the design elements of these crossing roads in the future design phases of the Project. (ii) Construction Staging/Phasing & Detour (Traffic Management Plan): The easterly connection to the current terminus of Highway 407 at Brock Road will require closure of existing Brock Road both north and south of the extended Highway 407. Pursuant to the approved Region of Durham Brock Road EA, the Brock Road will be realigned to by-pass Brougham to. the east. Consequently, the Highway 407 Final FIEA proposes a full interchange at the realigned Brock Road. East of the Hamlet of Brougham. In addition, Highway 7 is to be realigned to the north, as a four lane highway having a signalized intersection at the Realigned Brock Road. It is anticipated that Highway traffic from Highway 7 will access Highway 407 by way of Realigned Brock Road. Recognizing that the traffic management will be a significant consideration at the tie-in points at Brock Road and crossing roads within Pickering and the difficulties with .detouring the traffic during phases of construction, staff request an opportunity for input to a traffic staging plan (well in advance) showing the preferred detour route mapping. Before any detour or temporary route is opened to the traffic (within the City COR00227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) and Preliminary Design Study - August 2009 Page 20 14 9 of Pickering) all essential signs must be in place. Affected residents should also be informed by the MTO. Further, staff is requesting that the MTO add the construction of all local road crossings and proposed interchanges within Pickering to the Staging Plan identified in Section 8.1.12 of the Final FIEA Report and indicate specifically that this will be undertaken in the same timeline as the construction of Highway 407 Mainline. (iii) Proposed Trail at Paddock Road: City Staff is requesting MTO to incorporate accessible design criteria in the design and- construction of the proposed trail at Paddock Road. The trail should be 3.0 metre wide and be surfaced with asphalt. Also, it is requested that MTO provide signage with information on the trail for users. (iv) Don Beer Memorial Park: City staff is requesting MTO to incorporate provision for compensation of the significant impact on Don Beer Memorial Park near Brougham, and provide details as to how and when the loss would be compensated and/or replaced within Don Beer Memorial Park or an alternate location. We understand and strongly recommend that this should also be reviewed in consultation with the City Staff and Federal Government at the same time. (v) Gateway Feature at Lake Ridge Road: City staff is requesting MTO to install a gateway feature at Lake Ridge Road having a landscape and signage treatment as part of the CVP, similar to the existing gateway feature at the Highway 401/Brock Road interchange. (vi) Driveway Accesses: MTO should ensure that the existing residential/farm-field driveway accesses are serviced by road frontages where road closures and/or re- alignment of roads is proposed within Pickering. This will provide safe and functional access to individual properties. (vii) Typical Cross Sections and Road Profiles: Typical Cross Sections and Road Profiles for the crossing roads within Pickering should be reviewed by City staff during future design phases. (viii) Traffic Signals: Staff understands that the local interchanges which will require traffic signals will be identified during the subsequent design stages. Hence, traffic signal requirements at ramp terminal intersections will be determined in future phases of work. (ix) Plantings in Natural Areas: All proposed plantings within the natural. areas shall be of native species. Non-native species could be used at the interchanges where decorative landscape features are proposed in the Recommended Design. (x) Vegetation: Items like vegetation, clearing and grubbing, tree protection are extremely sensitive issues for the City of Pickering. Accordingly the City requires a slope CORP0227-07/01 revised ~k . Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) 150 and Preliminary Design Study -August 2009 Page 21 restoration plan addressing the need for replacement plants and trees for loss of existing tree/vegetation for the construction corridor and for slope stability. I i CORP0227-07/01 revised Report OES 45-09 October 13, 2009 Subject: 407 East Final Individual Environmental Assessment (FIEA) and Preliminary Design Study - August 2009 Page 221 51 APPENDIX - 4 of Report OES 45-09 DATA UPDATE ON THE FIEA REPORT 407 East Extension (from Brock Road in Pickering to Highway 35/115 in Clarington) Detailed section-specific data updates on the FIEA are provided below: " (i) Section 3.3.2 of the FIEA Report: Total Population and Employment Forecasts by Local Municipality and Region, 2001-2031 projections shown on page 3-44 reflect data provided by the Region of Durham during an early stage of the Region of Durham's Growing Durham Study which was tasked with implementing the Provincial Growth Plan for the Greater Golden Horseshoe. Since that time, the Region has adopted Amendment 128 to the Durham Region Official Plan to affect conformity with the Growth Plan. Amendment 128 contains different population and employment forecasts (see pages 34-35) that would amend the projections for Pickering for 2031 to 225,670 for population and 76,720 for employment. The figures for the other municipalities have also been changed. Accordingly, the Environmental Assessment for the 407 East extension should be revised to reflect the population and employment forecasts contained in Regional Official Plan Amendment No. 128. i I CORP0227-07/01 revised }-~-5-05 5 f`•'x~, I;•7f~i Y..~F~E a , 4. ' `~~3 x'••3°;~y'~"~ ~ t~ J2 m o R LL, • S tee.. ,4 t S- \ cri. t ~ ,.n Y v m j ■ r ~ 1I U -11 o f I II -i-t~C._F•'~!Er'~-`J•~.,, ~!"~'sPl~,i~t.~e 4G-0 1 2- t)-- Ontario 153 Exhibit 5-1 Heritage Resources - Section 1 (Brock Road to Kinsale Road) ~ q - .t , U 'r - - e ° 3e pop ' ¢ W o } d N k?O F t AN_ T7 3675 SIDELINE 14 e # x`• 3680 SIDELINE 14 .c, a # 3500 SIDELINE 16 A . 6~ o URS NwIwA, 2ni)s 12 I?r .esr, a;i NAkT .';i! !._s :ciat~s 6;G El -J d~;E' -j-(-, I~ 0aTt; 45- 01 > irft{)ilCt r3~5r.= {ii4'i4~ ili IFiG ~:G'COfi{iflt?rtii°L~t:51C~1i ~y- i'f'CIti1L]G Lr Ontario `5 4 Exhibit 5-2 Heritage Resources - Section 2 (Kinsale Road to Ashburn Road) w f/ rp .a a ~e y* sf N # i 5 z ~ f,;.,~~ war I m~jg ~ • * OF`W y _ F ~Sa 4 N ~ ~y ~ o mow- ' 4 ~y _y Q F 3860 LAKE RIDGE ROAD J 1; ~!y 4005 KINSALE ROAD 3805 SALEM ROAD .Q (WING ROGERS FARM) 5 ~ .s w 4 ` - - ~ ~ 3720 & 3750 SALEM ROAD ~ d .3 R v try ~i 3 n ' O UR t; ;<~,,tr, /r;{}g 14 ttltrirRail P.nc.Pi{aii 15 o::sa?zr.> ATTACHMENT# 3 _ TOREPORT# OES '45-.01 City of REPORT TO _ EXECUTIVE COMMITTEE PICKERIN Report Number: OES 07-09 1 5 5 1 Date: January 12, 2009 From: Everett Buntsma- Director, Operations & Emergency Services Subject: Highway 407 East - Environmental Assessment City of Pickering Comments on Technically Preferred Route & Preliminary Design (September 2008) File: A-1440 Recommendation: 1. That Report OES 07-09 of the Director, Operations & Emergency Services, regarding the Highway 407 East Environmental Assessment be received; 2. That Council support the Highway 407 East Technically Preferred Route (See Attachment #1) for the easterly extension of Highway 407, including transitway corridor/facilities and the two north-south links connecting to Highway 401; 3. That the Highway 407 EA Project Team revise the preliminary design for the proposed bridge crossings over Highway 407 (See Attachment #2) within Pickering, to include: (a) raised sidewalks (including sufficient right-of-way and the inclusion of platforms with .1.8 metre minimum width) on both sides of the roadways for all 407 East bridge crossings in Pickering; (b) dedicated 1.5 metre-wide bicycle lanes on the outer lanes on both sides of the roadways for all 407 East bridge crossings in Pickering, while maintaining the proposed pavement width of 3.5 metres for each vehicle lane; and, (c) lighting of appropriate quality, intensity and standards; 4. That the Ministry of Transportation Ontario (MTO) acquire and transfer to the. City of Pickering sufficient land for 18 metre-radius cul-de-sacs for the candidate roads for permanent closure (existing Brock Road, Paddock Road and Sideline 4), and any other lands required for municipal rights of way; 5. That the environmental impact on surrounding properties within the study corridor be minimized and mitigated with adequate measures as well as that amicable resolutions be sought with affected property owners; 6. That Council request the 407 EA Team to consider a better location for the highway maintenance facility that does not conflict with potential urban development plans for these lands; and ,ATTACHMENT#- TO REPORT#___._ of Report OES 07-09 REVISED January 12, 2009 Subject: Highway 407 East - Environmental. Assessment City of Pickering Comments on Technically Preferred Route 156 & Preliminary Design (September 2008) Page 2 134 7. Further, that a copy of the Report OES 07=0:9 be forwarded to the MTO the 407 EA Project Team, the Regional Municipality of Durham, and all Durham Area Municipalities. Executive Summary: The Technically Preferred Route (TPR) and Preliminary Design is proposed by the 407 EA Project Team, for the easterly extension of Highway 407 (including transitway corridor/facilities and two north-south links to connecting to Highway 401). The proposed alignment of Highway 407 in Pickering in the TPR is similar to the one shown in the Pickering Official Plan and the Durham Region Official Plan. Staff supports the TPR and recommends that Council also supports the same. Although in earlier versions, existing Brock Road, Sideline 14, Paddock Road, Sideline 4 and Kinsale Road were identified as the candidate roads for permanent closures, as a result of input from City Staff, Paddock Road and Kinsale Road were removed from the list of permanent road closures. Also, realigned Brock Road (to by-pass Brougham), Westney Road, Salem Road and Lake Ridge Road are proposed to have full interchanges along the corridor. A 60m wide transit-way corridor is proposed on the south side of the Highway 407 Mainline and on the west side of the West Durham Link connecting to Highway 401. A Commercial Vehicle Inspection facility is proposed on the south side of Highway 407 Mainline (eastbound lanes) east of Sideline 4. A highway maintenance facility is proposed on the north east corner of Highway 407 and Salem Road which City staff is recommending it be relocated. The City Staff supports the Technically Preferred Route and strongly recommends that the Environmental Assessment for Highway 407 conform to municipal official plans and policies, and the environmental impact on surrounding properties within the study area be minimized and that amicable resolutions be sought with affected property owners. A federal environmental assessment is also being carried out by the 407 EA Project Team to address federal issues such as navigable water and fisheries for the crossings and dealings with federal lands. Sidewalks and on-road dedicated bike lanes should be provided for all bridge crossings in the TPR to conform with the policies of the City of Pickering Official Plan, the Region of Durham Transportation Master Plan, Provincial Growth Plan for the Greater Golden Horseshoe and to align with the policies proposed for municipalities in the Metrolinx Transportation Plan. CORP0227-07101 revised ATTACHMENT#-3- TOREPORT# DES 49-01 3 of Report OES 07-09 January 12, 2009 Subject: Highway 407 East - Environmental Assessment 157 City of Pickering Comments on Technically Preferred Route & Preliminary Design (September 2008) Page 3 Financial Implications: There are no financial implications with respect to adopting the recommendations of this Report. However, should the MTO not accept Council's recommendations that the Province design, construct and fund the costs associated with the recommendations of Report OES 07-09, the City of Pickering will be required to fund such significant costs in the future. Sustainability Implications: Construction of Highway 407 with . the proposed crossings and facilities, as recommended by the 407 EA Project Team will not only strengthen the economy, the staff recommended treatments for the Highway 407 crossings will promote healthier lifestyles through active transportation modes for the future residents and employees in north-east Pickering. Background: 1.1 The Environmental Assessment Process has resulted in a Technically Preferred Route Although the Environmental Assessment (EA) for Highway 407 was commenced in 2002, the EA Terms of Reference were not approved by the Minister of the Environment until January 2005. Since then, over the last four years, the 407 EA Project Team held a number of meetings with municipal and other regulatory agency staff. Four Public Information Centers (PIC's) were also held during this period to inform and receive public feedback. City staff took part in the municipal meetings and also attended the PIC meetings. The 407 EA Project Team organized a series of workshops to facilitate the generation of Community Value Plan (CVP) for the 407 East project. The purpose of these workshops was to gather comments from the stakeholders residing in communities adjacent to and within close proximity to the technically recommended route. The 407 EA Project Team confirmed that Highway 407 and a transitway are needed and also conducted a comprehensive evaluation of the merits of a large number of alternative routes for both the 407 Mainline and the East and West Links. Following an earlier presentation of a Technically Recommended Route (TRR) and after detailed consideration of numerous options for the different segments and elements of possible alignments of Highway 407 and a transitway from Brock Road in Pickering to Highway 115/35 in Clarington, along with two CORP0227-07/01 revised I 1 5 ATTACHMENT# 3 TOREPORT# 4ES 45-0~ Report OES 07-09 ot January 12, 2009 Subject: Highway 407 East - Environmental Assessment City of Pickering Comments on Technically Preferred Route & Preliminary Design (September 2008) Page 4 north-south links connecting to Highway 401, a revised alignment called the Technically Preferred Route was presented to the-public at Public Information Center #4 meetings in June 2008. 1.2 A Federal Environmental Assessment of Highway 407 is also underway. In conjunction with the provincial environmental assessment, a federal environmental assessment is also being carried out by the 407 EA Project Team to address federal issues which include impacts on fisheries and on federal lands. Staffs understanding is that once the Federal EA is completed, it will be submitted directly to Environment Canada. 1.3 The Preliminary Design includes details for proposed highway facilities and for road crossings. At a meeting in April 2008, the 407 EA Project Team advised City staff about proposed treatments of road crossings and facilities in Pickering for the easterly extension of Highway 407, as follows: (a) Proposed Permanent Road Closures • Existing Brock Road • Sideline 14 Paddock Road • Sideline 4 • . Kinsale Road City staff strongly opposed permanent closure of all of the roads/crossings with cul-de-sacs (with the exception of Brock Road). Staff argued the importance of maintaining the current level of permeability in a north-south direction to reduce bottlenecks, provide choice, ensure continuous access to adjacent properties, as well as to facilitative maintenance operations and effective emergency services for existing residents. Staff advised the 407 EA Project Team that the City's Official Plan designated crossings on all north-south roads intersecting Highway 407. Staff further advised the 407 EA Project Team that these roads will need to serve the future urban growth area in north-east Pickering identified in Schedule 'F' of the Durham Regional Official Plan (Consolidation) dated: June 5, 2008. Staff anticipates these lands to be designated as urban as a result of the Region of Durham and City of Pickering future implementation of the Growth Plan for the Greater Golden Horseshoe. CORP0227-07101 revised ATTACHMENT# 3_ TOREPORT# OCE _ ot~._ 159 Report OES 07-09 January 12, 2009 Subject: Highway 407 East - Environmental Assessment City of Pickering Comments on Technically Preferred Route & Preliminary Design (September 2008) Page 5 (b) Interchanges within Pickering . Full interchanges were proposed at the following locations: • Realigned Brock Road (to by-pass Brougham) • Westney Road • Salem Road Lake Ridge Road at Highway 407 (partial interchange) The Highway 407/WestneY Road interchange will limit the options for the alignment of the Westney Road by-pass of the Hamlet of Greenwood, for which an Environmental Assessment will be commenced shortly by the Region of Durham. In addition to the proposed road crossings at interchanges, re-aligned Highway 7 was identified as a crossing road. (c) Proposed Transitway Corridor and Transitway Facilities A 60 metre wide transit-way corridor is proposed on the south side of the proposed easterly extension of Highway 407 and on the west side of both the west and the east Durham freeway links with transitway stations at a majority of the interchanges (See Attachment #2). The following interchanges in Pickering are proposed to have transitway stations: • Realigned Brock Road Westney Road • Salem Road; and • Lake Ridge Road (d) Proposed Highway Facilities A large highway maintenance facility is proposed in the north-east quadrant of the proposed Salem Road interchange. City staff commented that in the Growing Durham Study (September 2008) Salem Road is identified as growth corridor for high density residential, office and employment development. Whereas the location of a transitway station would serve workers and residents transportation needs at Salem Road, a large highway maintenance facility would create a barrier to a continuous high density growth corridor on Salem Road. CORP0227-07/01 revised 16 0 ATTACHMENTS TOREPORT# QES 4S-01 Report OES 07-09 January 12, 2009 Subject: Highway 407 East -Environmental Assessment City of Pickering Comments on Technically Preferred Route & Preliminary Design (September 2008) Page 6 A vehicle inspection facility is proposed on the east bound lanes of Highway 407, east of Sideline 4. 2.0 Preliminary Design revised based on City Staff's Input/Comments As a result of discussions/meetings with City staff between April 2008 and September 2008, the 407 EA Project Team revised the preliminary design for some elements of Highway 407 in Pickering. City staff requested sidewalks.and on-road dedicated bicycle lanes be designed and constructed on both sides of the roadways for all proposed bridge crossings. Following the 407 EA Project Team presentation to Planning & Development Committee on October 6, 2,008, Pickering Councillors reinforced the City's vision of sidewalks and on-road dedicated bicycle lanes on all proposed bridge crossings. Staff also requested that sufficient right-of-way be acquired to accommodate the sidewalks and on-road dedicated bicycle lane facilities and requested that platforms for sidewalks be constructed (including land, grading and bridge work). The revised preliminary design presented by the 407 EA Project Team to City staff at a further meeting in October included the following changes: (a) Interchanges within Pickering • Interchange for Lake Ridge Road upgraded to a full-interchange; (b) Permanent Road Closures: • Kinsale Road and Sideline 14 removed from the road closure list; (c) Proposed Bridge Crossings & Treatments: PROPOSED TREATMENTS BRIDGE CROSSINGS Realigned Brock New interchange proposed with sidewalks (both Road sides and a bicycle lane one side Highway 7 Proposed to ass under the Highway 407 Sideline 16. To be realigned with no sidewalks or bike lanes Sideline 14 Proposed to pass over Highway 407 with no sidewalks and no bike lanes CORP0227-07101 revised ATTACHMENT # 3 TOREPORT# oES 45-01 --2of!~-- 1 61 Report OES 07-09 January 12, 2009 Subject: Highway 407 East - Environmental Assessment City of Pickering Comments on Technically Preferred Route & Preliminary Design (September 2008) Page 7 PROPOSED TREATMENTS BRIDGE CROSSINGS Westney Road A new interchange is proposed at Westney Road with no bike lanes but is now proposed to be constructed with potential for sidewalks to be added later at City cost Salem Road A new interchange is proposed to pass over Highway 407 with no bike lanes but is now proposed with potential for sidewalks to be added later at City cost Kinsale Road Proposed to pass over Highway 407 to realign to. the east of its current location with no bike lanes but is now potentially proposed for sidewalks to be added later at City cost Lake Ridge Road Proposed to pass over Highway 407 with a proposed full interchange with no sidewalks or bike lanes (d) Highway Facilities: • Change from south side to the north side is proposed in locating a highway maintenance facility at the Salem Road interchange. 3.0 Discussion And Comments on the Highway 407 .East Environmental Assessment 3.1 The Technically Preferred Route is supported. The TPR proposed by the 407 EA Project Team through north-east Pickering proposes an alignment similar to the one shown in the Pickering Official Plan and the Durham Region Official Plan. The proposed route has an interchange with the approved Brock Road realignment (to by-pass the Hamlet of Brougham), proceeds eastwards to the north of Highway #7 with interchanges at Westney and Salem Roads and passes north of the Hamlet of Kinsale before it proceeds to the interchange at Lakeridge Road where it splits into the easterly Mainline and the West Durham freeway link to connect to Highway 401. Staff supports the Technically Preferred Route and recommends that Council also support it. CORP0227-07/01 revised 1 6 2 ATTACH MENT# 3 TOREPORT# Q GS 45.0 of Report OES 07-09 January 12, 2009 Subject: Highway 407 East - Environmental Assessment City of Pickering Comments on Technically Preferred Route & Preliminary Design.(September 2008) Page 8 j ; 3.2 Revisions are recommended to the Proposed Road Crossing Treatments During earlier stages of the Environmental Assessment, the EA Project Team proposed no sidewalk or bicycle lane accommodation for the underpasses or bridges proposed to cross Highway 407 in Pickering. Now that the EA has advanced to the preliminary design phase, the 407 EA Project Team are still proposing only a very limited accommodation. City staff's understanding is that a bicycle lane crossing with `potential' (as proposed by 407 EA Project Team) for a sidewalk on a bridge or underpass means there is sufficient right-of-way and is designed and constructed to accommodate the width of a sidewalk on each side at a later date and at no initial cost to the City of Pickering. Construction of wider underpasses or bridges during initial construction is estimated to be significantly cheaper than as later additions at City's cost. While construction with the 'potential' add sidewalks in the future is an improvement, bike lanes and sidewalks should be constructed at the time that Highway 407 is first constructed. Sidewalks and bike lanes should be provided on both sides of the road to. encourage active transportation on all major roads in new communities to support complete communities, foster healthier lifestyles and reduce demand for vehicular trips (improve the modal split). The Pickering Official Plan calls for a transportation system designed to offer a range of travel choices balancing the need to accommodate automobiles with pedestrians and cyclist safety and convenience. It not only requests assistance from the Province to correct the barrier effect of Highway 401 but also requests that the barrier effect of. Highway 407 be minimized by providing appropriate vehicular, cyclist and pedestrian crossings at all existing north-south roads in Pickering. The existing north-south roads will be needed to serve the future urban growth area in north-east Pickering currently identified in the "Durham Regional Official Plan. The Region of Durham is in the process of completing the Growing Durham Study and will adopt an Official Plan amendment by June 2009 to implement the Growth Plan. At that time, in order to implement the .Province's- imposed population and employment targets, it is anticipated that most of north-east Pickering will be designated as an urban area for development before 2031. The new urban area will include high intensity growth nodes and corridors. The City of Pickering will subsequently follow suit with more detailed policies. The Region of Durham Transportation Master Plan includes a Transportation Demand Management Policy to reduce single occupant vehicle dependency by promoting alternative transportation modes such as cycling and walking. CORP0227-07/01 revised ATTACHMENT# 3 TOREPORT# arS Ns~oq 1 63 of ! 1._ Report OES 07-09 January 12, 2009 Subject: Highway.407 East - Environmental Assessment City of Pickering Comments on Technically Preferred Route & Preliminary Design (September 2008) Page 9 The Environmental Assessment for Highway 407 should conform to the official plans and policies of the municipalities that it runs through. The Province's Growth Plan for the Greater Golden Horseshoe provides direction to municipalities for the design of new urban areas required. to accommodate population and employment targets. Growth is to be managed by reducing automobile dependency and increasing modal share of walking and cycling with safe and comfortable travel through linkages between intensification areas, adjacent neighborhoods and transit stations including dedicated bicycle lanes on the major street network. Since these new communities are mandated by the Growth Plan to foster active transportation as part of the policies, the Province should not build a significant new Highway in a manner that would frustrate that objective. The. Metrolinx Transportation Plan proposes more precise and aggressive policies and a series of strategic directions for municipalities to translate the mandated policies of the Growth Plan into actions and programs, with the matter of active transportation facilities on roads a major theme. The City of Pickering or the Region of Durham should not be burdened with any greater costs of creating the active transportation facilities necessary on Province's infrastructure. Since the Highway 407 East Extension is a major .Provincial infrastructure in an area recommended for urban development to implement a Provincial Plan, and since that Provincial Plan requires safe and convenient pedestrian and cyclist facilities, the construction of the pedestrian sidewalks and on-road dedicated bicycle lanes on all the proposed crossings should be integral part of the Provincial investment in communities. As a minimum, the bridges should be built with a wide platform at the Province's cost to permit future installation of sidewalks when new communities are built on the abutting lands at a municipal cost. By contrast, all three-proposed road crossings of the Highway 407 West Durham freeway link in the Town of Whitby (Taunton, Rossland and Kingston Roads) are proposed to have sidewalks constructed on both sides and a bike lane on one side. The lands abutting the West Durham link in Whitby are proposed to be designated as urban area for development before 2031 in the Growing Durham Growth Plan, conformity exercise as are the lands north and south of the proposed Highway 407 Mainline in north-east Pickering. Lower standards should not be proposed for the road crossings in Pickering on the mainline. CORP0227-07/01 revised 1 6 4 ATTACHMENT#-3 TOREPORT# OES 4S-0y Io of I Report OES 07-09 January 12, 2009 Subject: Highway 407 East - Environmental Assessment City of Pickering Comments on Technically Preferred Route i & Preliminary Design (September 2008) Page 10 The City of Pickering would be disappointed if the Province's most significant infrastructure project in Durham Region in this generation (Highway 407) did not support similar Provincial policy directions. Staff is accordingly recommending that City Council request the Highway 407 East Environmental Assessment Project Team to revise the preliminary design for the Highway 407 road crossings and facilities in Pickering to: • design and construction of raised sidewalks (including sufficient right-of-way and the inclusion of platforms with 1.8 metre minimum width) on both sides of the roadways for all 407 East road crossings in Pickering; • design and construction of dedicated 1.5 metre-wide bicycle lanes on each side of the outer lanes on both sides of the roadways for all 407 East road crossings in Pickering, maintaining the proposed pavement width of 3.5 metres for each vehicle lane; and, ` • lighting of appropriate quality, intensity and design. 3.3 Pickering requires sufficient land for cul-de-sacs to terminate the roads to be closed. Existing Brock Road, Paddock Road and Sideline 4 are proposed to be permanently closed with cul-de-sacs constructed north and south of Highway 407. Existing Brock Road is being replaced by a realigned Brock Road, Paddock Road is located in the greenbelt and has less potential to serve future demand in future urban growth areas and Sideline 4 due to of the location of the vehicle inspection station which would require an unusual long bridge and/or underpass. Accordingly, Staff agree these roads are the best candidates for closure, if any are necessary. In order to provide appropriate turning circles for Pickering maintenance, emergency and other vehicles, it is recommended that Council request the MTO acquire and transfer to City of Pickering a sufficient land for 18 metre radius cul- de-sacs for each road that is proposed to be closed. 14 Environmental Impact and Conflicts with Property Owners Should Be Minimized Environmental impacts on properties surrounding the proposed Highway and on streams, valleys and other sensitive natural features should be minimized by careful design and construction of Highway 407. In addition, design and property CORP0227-07/01 revised ATTACHMENT# 3 TOREPORT# OCS 45-0 6 5 ___LL of 12 1 Report OES 07-09 January 12, 2009 Subject: Highway 407 East - Environmental Assessment City of Pickering Comments on Technically Preferred Route & Preliminary Design (September 2008) Page 11 acquisitions should be implemented to minimize and/or mitigate impacts on affected property- owners. It is recommended that Council request that environmental impact on surrounding properties within the study area be minimized and that amicable resolutions be sought with affected property owners. 3.5 The Location of the.Highway Maintenance Facility Should Be Changed - A highway maintenance facility is proposed to be located in the north-east quadrant south of the Salem Road Highway 407 interchange. Staff commented that, in the Growing Durham Study, Salem Road is identified as a Local Growth Corridor for high density residential, office and employment development' The location of a transitway station proposed for the south-west quadrant would serve workers and residents transportation needs at Salem Road. However a large highway maintenance facility would create a barrier to a continuous high density growth corridor on Salem Road without supporting the growth corridor. Staff recommends that Council request that the 407 EA Team consider a better location for the highway maintenance facility that does not conflict with potential urban development plans for these lands. Attachments: 1. Technically Preferred Route prepared by MTO and their Consultants 2. Preliminary Design (Summary of Existing & Proposed Municipal Infrastructure) prepared by MTO and their Consultants for proposed bridge crossings 3. Proposed Sidewalk/Bike Lane Location Plan prepared by MTO and their Consultants indicating Potential Support Facilities CORP0227-07/01 revised 166 ATTACHMENT# _ _3 TOREPORT# QC- 46-01, Report OES 07-09 January 12, 2009 Subject: Highway 407 East- Environmental Assessment City of Pickering Comments on Technically Preferred Route & Preliminary Design (September 2008) Page 12 i .,Y"•. Prepared By: Approved/Endorsed By: Kashif Shaikh, M.Eng. Everett B sma Coordinator, Transportation Engineering Director, Operations & Emergency Services "Oe Steve Gaunt, MCIP, PP N Carr I , RPP rincipal Planner - Policy Director, Planning & Development Ric rd W. H orn, P. Eng. D' ision Head, Municipal Property & Engineering RH:ks Copy: Chief Administrative Officer Recommended for the consideration of Pickering City ouncil s ~j Th J. Quin DMR, M III Chief Administr e Officer CORP0227-07/01 revised ATTACHMENT# 3 TOREPORUJO-t -OO 1 t3 . j .a w171 9 s .k: O J L W 5 . 1Y I z kr,r F4sk ~ , ~ t fit - ~Lfa4f=`t I V Qf Y~i{cl _ b, rr ' c3 ~ - F - F a 7 "7-11 P :ti to w.c p r ' ti ! k It-j i ~t u f13~1 t _ A - n t" w lkfrl( ~L 4b, .K ±kI r. ,t r i k, . fj~ 1F t. _ 1 1 J 4cal y • ATTACH MENT# TOREPORT# OES 45-09 q of a~ w a~~ E R w 3 ~ ° w°~ 3° a S P° m~ 4 S R a n ~ 5.';~; ~r m C. 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'-J'A I I'M V.1' G, ENCY SERVICES Dl- NT 1 i'iti i}''al I'rs } ear it ,ir~4terirt;t, Division august 4, 2009 (REVISED) Dan Rernollino, P.Eng, Project Manager 407 East Environmental Assessment Ministry of Transportation Ontario (MTO) Planning & Environmental Office T' Floor, Building 'D' 1201 'Filson Avenue. Downsview, ON MOM 1J8 Subject: 407 East Individual Environmental Assessment (lEA) and Preliminary Design Study. Staff Comments on the presentation to Pickering Joint ExecutivelPlanning & Development Committee Meeting on July 6, 2009 File: D-7460 Thank you for attending the July 6, 2';)00 Joint Executive/Planning & Development Committee Meeting and updating n,F~;,-gibers of Council on the Draft Environmental Assessment Report for the. 407 East Individual Environmental Assessment (lEA) and Preliminary Design Study- Although. Council has indicated that it s,_ipporks the proposed Highway 407 East Technically Preferred Route (TPR) for the easterly extension of Highway 407, including transitway corridor/facilities and the two north-south links connecting to Highway 401, individual members of Council expressed a number of concerns abort certain aspects proposed by the Draft 407 East EA at the Joint Committee meeting. Revised as shown in {tafacs on Page No A U I ATTACHMENT# - TO REPORT# b~ S 45- y of 5 407 East individual Environmental Assessment (IEA) August 4, 2009 1 75 and Preliminary Design Study Page 2 Proposed Interchange at Westney Road At several earlier meetings with the 407 EA Project Team, City staff requested that the location and/or orientation of the proposed interchange at Westney Road remain flexible to accommodate the location of the proposed Greenwood By-Pass of Westney Road that would be determined by a Region of Durham Environmental Assessment. Although Council adopted the staff recommendation to endorse the technically preferred route in January, 2009, the concern about its impact on the Greenwood by--pass of Westney Road remained. The location for the Westneyd407 interchange shown on the technically preferred route for Highway 407, caused the Region of Durham to shift the alignment of the Greenwood By-pass of'1 estney Read from the alignment shown in the City of Pickering and Region of Durham official plans to a location much closer to a number of residences in the Greenwood community, with anticipated negative impacts. The new alignment is reflected in the study area selected by the Region of Durham for the BA for the by-pass. The Region of Durham EA for the Greenwood by-pass is currently underway with completion expected late in 2009. At the July 6th joint committee meeting, a member of Council requested that the proposed interchange at Westney Road proposed in the Draft Environmental Assessment Report for the 407 be relocated farther east to accommodate a more easterlyGreenwood By-pass, among other matters. Another member of Council suggested as an alternative that the alignment of the interchange remain at the location shown in the Draft 407 EA and be reoriented to angle the interchange to accommodate a more easterly location for the Greenwood By- Pass, This would lessen the impact on properties located on the east side of Westney Road, south of the Sixth Concession Road. Such a reorientation would be similar to the orientation proposed for the 407/Brock Road By-pass interchange. At this time, the City requests that the 407 East F-A be amended to retain flexibility to re- orient the angle of the 407NVestney Road interchange to accommodate a more easterly alignment for the Greenwood by-:pass, should the region's EA for the Greenwood by- pass support such an alignment: Cultural Heritage City officials recently became r~tir~ e, that the Ministry had commissioned the "Heritage Assessment of 3805 Salem Roar;" conducted by Archaeologix Inc, in 2003, which contained strong recommendasio;is to protect the Rogers Homestead. Despite the strong recornmendation on page 15 of the Heritage Assessment, the technically preferred route for Highway 407 would displace the homestead buildings, Other recommendations, less preferred by the heritage Assessment, include moving all ATTACHMENT#_ TOREPORT# 2C ~5"Vy 176 of 407 East Individual Environmental Assessment (IEA) August 4, 2009 and Preliminary Design Study Page 3 the buildings together, perhaps to a museum, move individual buildings 'separately, or, if demolitions are necessary, to salvage an extensive list of materials from the four buildings. At the July 6`r" meeting, suggestions were made by Councillors to change the proposed alignment of Highway 407 to preserve the Rogers Homestead or to move the interchange further east to avoid disruption to the cluster of buildings on the Rogers property or relocate the buildings at IVITO':s cost. At this time, City staff request that if MTO is considering moving the subject buildings to another more suitable location, input be obtained from City Officials. It is also requested that INTO continue to retain tenants, if possible, in order to ensure continued maintenance of the buildings, until such time as final decisions about the disposition of this heritage resource are reached. City staff intends to consult with our municipal heritage committee regarding all of the seven cultural heritage residences or farmsteads identJied for displacement in the Draft r Environmental Assessment Report. Therefore, staff request that MTO withhold final decisions regarding their disposition unt.l this consultation occurs. It is anticipated that the results of the consultation will be r :fiect ,~d in a report that staff is preparing for Council consideration early in SeptembA_~r for submission to the Minister of the Environment, Further, it is requested' that MTO officials discuss alternative strategies for all seven cultural heritage residences or farmsteads to be disrlic c ed by the 407 with City staff before final decisions on their disposition are reached. Cost Sharing on Concrete Sidewalks & Bicycle Hanes At the joint committee meeting, members of Council raised concerns abort the provision and cast sharing for sideways and bicycle lanes on the proposed interchanges and bridge crossings, The City of Pickering should not be burdened with any casts of creating active transportation facilities on the Province's infrastructure. Members of Council were disappointed that the Province's most significant infrastructure project in Durham: Region is not supporting Provincial Policies such as the Ontario.Accessibility Act, the Provincial Growth Plan for the Greater Golden Horseshoe and the tvtetrolinx Transportation Plan. A member of Council also questioned whether the proposed sidewalk provisions proposed for Highway 407 meet the requirements of the Ontario Accessibility Act. As previously outlined in Report OES 7.00, endorsed by Council on January 12, 2009, the Highway 407 easterly extension is a major piece of Provincial infrastructure in an area recornmended for urban development to implement the Provincial. Growth Plan.. The Growth Plan rewires safe and convenient pedestrian and cyclist facilities. The construction of pedestrian sidewalks and on-road dedicated bicycle lanes on all the ATTACHMENT#--J-- TOREPORT# 6ES 4sv0y 4 _ of 177 407 East Individual Environmental Assessment (IEA,) August 4, *2009 and Preliminary Design Study a Page 4 proposed crossings should be an integral part of the Provincial investment in communities. In Report OES 07-09, the City requested that MTO, design and construct raised sidewalks (including sufficient right-of- way and the inclusion of platforms with 1.8 metre minimum width) on both sides of all 407 East road crossings in Pickering; and design and construct dedicated 1,5 metre-wide bicycle lanes on each side of the outer lanes on both sides for all 407 East road crossings in Pickering, maintaining the proposed pavement width of 3,5 metres for each vehicle lane. At the joint Planning & Develo ment/Executive committee meeting, you clarified that MTO's proposals for sidewalk and bike lane facilities are to: construct 1,5 metre dedicated bikes lanes for the Brock Road and Lakeridge Road interchanges only, and 1.5 rnetre sidewalks at Brock, Lakeridge, tllestney and Salem interchanges and the Kinsale/Audley bridge crossing at MTO expense; and that, sufficient land would be acquired and brid'gelinterchange design would include potential for widening to accommodate bike lanes, sidewalks and sidewalk widening to 1.8 metres on a cost-shared basis with the municipalities, At the presentation, you indicated that an internal revie of IVITO policy for provision of active transportation facilities on Provincial highway projects was underway and also that you would review the requirements of the Ontario Accessibility Act as it may apply. The City of Pickering ;wishes to reiterate its request for 1.5 metre dedicated bile lanes and 1.8 metre sidewalks to be designed and constructed at all interchanges and bridge crossings of Highway 407 proposed in Pickering at MTO expense. Tolling on Highway 407 Easterly Extension and the North/South Links Also, at the joint committee meeting, members of Council indicated opposition to the Government's decision to toll the easterly extension of Highway 407, on the basis that there is a significantly smaller number, of roads entering and exiting Durham Regioh compared to the number of roads entering and exiting the Western GTA from the Central GTA, many of which were provincially funded and currently have no tolls. However, although the decision on tolling is beyond the scope of the 407 Project Team, several members of Council noted the revenue stream from tells could pay for the sidewalks and bike lames, without requiring municipal cost-sharing. ATTACHMENT# J 1'0 REPORT# DES U 5"01 Of 178 407 East Individual Environmental Assessment (IEA) August 4, 2009 and Preliminary Design Study Page 5 I trust that these concerns vvill be recognized and reflected in amendments to the individual environmental assessment submitted to the Minister of the. Environment and look forvrard to continued dialogue as this important project moves forward, Yours truly Richard , Holborn, ',Eng. Division Head, Municipal Propert,/ Engirieering IR H: €cs Copy: Director Transportation & F'iel'd Services, Legion of Durham Project Consultant (Brenda ,Jamieson, AECOM) Chief Ad I i-ninistrativeOfficer (Acting) Chief Administrative Officer Director Operations & Emergency Services Supervisor, Engineering & Capital Works Director, Planning & Development Manager, Policy Principal Planner Polly (Steve Gaunt) Coordinator; Transportation Engineering AT TACHMENT# . TO REPORT# oe 55 4!S-D of _ 3-- 1 79 Nfinistry of'Fransportation Mir'-S*iti des Transports , RallniNl' and Envtrcrrnerztai ffi`c Bv a_av Cprtriile-gion i Cf':€r r3 71rn; i I'd Po Bldg. •O- nt ;ics (rq certr:; 3' eta, i , iii, !2 0t vJii r , Avenue rJLiii9v'tf1§' dJP7 'v13N,11v 120s.7 ? vu`;,• f r t`eh. Fax.: 41 T&ec_: 41,63-235,3446 f 3 fSti% ~%e'( March 7, 20010 The Corporation of the City of Pickering One The Esplanade Pickering, ON r 7,. 775 L1 `J 6it7 Q 11, 4 J V l To: Debi Wif coX I ~~T~ ~eJ*r Lk_ City Cler:.k'~~~ ,w~...,..~. RE: 407 East Environmental Assessment City of Pickering Comments can Technically Preferred Route & Preliminary Design Ministry of Transportations Responses Your File No..: A-14401 Thank you for your January 215`, 20100 correspondence with accompanying Report OES 037-09 containing the City of Pickering's comments regarding the Highway 407 East EA. The Ministry responses to the recommendations contained in the Report are provided below in italics. 2. That. Codncil support the Highway 407 East. Technically Preferred Route for file easterly extension of Highway 407, including transitway corridor/facilities and the two north-south links convecting to Highway 401: T~ortk you for your sup1,,)orr of the 407 East Tr-arisporlatlvrj Corridor, The City's support for th.e Technically Preferred Route has been documented. 3. That the Highway 407 East Project Teams review the preliminary design for the proposed bridge crossings over Highway 407 within Pickering to include: a raised sidewalks (including sufficient right-of-way and the inclusion of platforms with 1.8 metre minimurn width) on bath sides of -the roadways for all 4017 East bridge crossings in Pickering; b, dedicated 1.5 metre-wide 7icycle lanes on the ou,er lar,es on both sides of the roadways for all 407 Ea i . :ir.a crossings in Pickering ; while maintaining the proposed pavement wide -.cif 3.5 metres for ea--h vehicle lane: and c) lighting of appropriate quality, intensity and standards. ATTACNMENT# s- TOREPORT# OE TS 49`o 1 ~ 80 of 2 The proposed approacl, for the treatment of s r'ewa ks end bike lanes at structure locations took into consideration the Grow,,,, d `era, Growing Durham, existing Official Plans, existing cycling plans, current infras r ucture and existing MTO policies, practices, procedures and guidelines. Throogh the Pickering area, the Recommended Design includes.- side, alks and bike lanes can the Brock Road and Lake Midge Road structures and sidewalks on the Wesrney Road, Salem Road and Kinsale Road- structures, with cyclist movements accommodated within a 1.5 m shoulder area. At the Sideline 14 structure, the shoulder area will accommodate pedestrian and cyclist moverrrents. With respect to sidewalk and bike lone widths, the Recommended Design allows for a 1.5 m sidewalk on both sides of the structure. Oppoilunities to increase the sidewalk width to 1.8 m can be reviewed during subsequent design phase. For structures with dedicated bike lanes, a bike lane width of 2.5 rra will be provided on bath sides of the structure in accordance with brlc'dge defiigrr standards. Lighting of appropriate quality, intensity and standards will be provided where applicable. 4. That the Ministry of Transportation Ontario (MTO) acquflre and transfer to the City of Pickering sufficient land' for 18 metre-radius cut-cue-saes for the candidate roads for oermanent closure (existing Brock Road, Paddock-Road and Sideline 4), and any other lands required aor municipal rights of way: MTO will acquire and transfer sufficient land to the City for 18 m radius cut-de-sacs at the proposed road closure locations as well as other lands required for municipal rights of way associated theirn:uok.ipal road crossings and realignments. 6. That the environmental impact on surrounding properties within the study corridor be Minimized and mitigated with adequate measures as well as that amicable resolutions be sought with affected property owners-, The environmental effects associated with the undertaking have been assessed, with rniticdation and compensation measure s/strategies dovelopecd where appropriate. In addition., the Community Value Plan identified enhanced mitigation measures which will be OCILrded as ccanrr;ait nrents daa the EA Reiaort. The Ministry will endeavour to continue to seek amicable resolutions with affected property' owners regarding potential environmental effects and property acquisition requirements, 6. That Council request the 40 A Team to consider a better location for the highway maintenance facility that' does not conflict with potential urOan development plans for these lands: While consideration was being given to situating the highway maintenance facility In the northeast quadrant of the Salem, Roan Interchange, the recommended location for the laiclhv,lay maintenance facility is the southeast quadrant of the Salem Road Interchange as presented on the playas presented at PIC #5. It is our understanding ATTACHMENT4_ t~REPORT __.!2_eS 45'"~ I 3 at 3 1~1 that this addresses the concerns raised by City stoff regarding conflicts with ,ootentiai urban developm nt,plans for the lands north of the proposed 407: corridor. I trust the foregoing responses are helpful and clarify t` -o Ministry's position. Should you have any questions or concerns please do not hesitate to c_ ttsrt rne. We look fom/ard to your continued support and cooperation on this irnpoilant ini;:ative. Sincerely, Chan Rernoilino, P.Encg. Project Manager 407 East Environmental Assessment -Tel. 416-255-'5516 CC" Tires Sorochinsky (URS) D. Allingham (AECOM) B, Jamieson (AECOM) D. Proudloot (:MTV}) S. Wrey (MTCt 82 G\~.>9~v1~'tR~r3_ t0 :4"r 64.SB;~_,QCS 45-01 Ai Ai- 82 T I I ~ i n ~ y, 1 ri ~7 6• , ! f cr top ! i 4 CD a _ 37 Ono - ~ ~ dp r ell, t Aid _ f } irl REPOR 1 3 OWNSHIP OF UXBRIDGE d N C p n °n r m a m & WW N Z Z 2 W Z p 6 - lidz A N W W d N = Z h 7 W N ' ` m N = N N / O W Z W Z W Z W O • O G O W N O N N Z m EIGHTH CO CESSION ROAD EIGHTH ONCES N ROAD 3 Z N a W J O Y WO N N m h N Z W ~ W N z O O / W 2 m Z w ? O 4 ZZj l O W / O VI W e ; O _ VO-1 W / m O RO VO-1 ION RO m S n D46 , G m W 0 i p / W K n D40- z W N O Y O ri~p7,+M, ` YFx•?k:". 1 W W IO m cY W O ''y93Y1 ] r d' :I L3 G Z N W m W D Y. LL ' • N KIN O G HIGH WA m _ff I IXTH C G^^.OG ' • 1tyGTC~.I~. •p'~~ F G i F REST o O . . . ON o A ..D m O z . 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't[C C t f1 ► l .~'1 3%u& wo 411 E 511 a W • s"`` f j - 5 r LU, w yr w ♦ ` } z .7 Q r _ a w w / 's ATTACH MENT# y TOREPORT# OC-S ~S~U~ NE; s3-tstry of Transportation r~ cSt~r{? cis Ti ~rns~ort~, Ontario Planrjny~ and Endironrres7". f ~JrfsC C. vr= z cif .a ~i e4 de jj Cf"raral Region 3rd Floor, Bldra `o' Region du Ce 1, 18 5 I F 9? Wilson 4kt nje ddi t,,r i;} Dow, rrsvewa, ON MA4 'U8 ?231, avenue Wkon Tf-I. 415,235-5485 Dovmsview. ON MiM 1J8 F px.: 4i:8-235-3446 i 41 235.5485 August 26, 2009 r t t,t: Mr. Richard W. Holborn, P_Eng. Division Head, Municipal Property & Engineering City of Pickering Pickering Civic Complex One The Esplanade Pickering, ON LIV 6K7 Dear Mr. Holborn.. Re; 407 East Environmental Assessment (EA) Draft Environmental Assessment Report Thank you for-your letters of July 20 and August 4, 2009 regarding the 407 East Environmental Assessment. We appreciate the comments and feedback you have provided on the Draft Environmental Assessment Report. The attached table provides responses to he issuer raised in your letters. In addition, a table has been posted on the hone page of the 417, East EA 'website (wwvvAQ eastea.com,, detailing all written comments received through the pre-submission process and the Project Team responses to these comments, The EA Report has been finalized for submission to the Minister of the Environment for approval, taking into consideration the comments received during the pre-submission process. The formal review period begins on Friday August 28, 2009. The EA Report will be available for review from August 28. 2:009 to October 16, 2009 at a number of review locations, including local municipal offices, select local libraries and MOE offices; and the AECOM' and MTO Project Offices. Please refer to the study website for further details regarding the review locations. . Please rote that all comments on the EA Report are to be submitted directly to the MOE Project Officer, Mr. Jeffrey lea. His contact Information is as follows.-. Mr. Jeffrey tea, Project Officer Ministry of the Environment Environmental Assessment and Approvals Branch 2 St. Clair Avenue West, Floor 82A Toronto, ON M4V 1L5 Tel, 416-314-7213 Fax: 416-314-8452 E-rTiail; .Jett .C e t z,;,ntzir<o.ca I ATTACHMENT# 9 TOREPORT# OLS 4S-0 a of 186 Should you have any questions or concerns, pleaso do not hesitate to contact me, We look forward to your continued cooperation or, this important initiative, ~i~~erely, Chan Remollino. P. Eng: Project Manager 407 East Environmenial. Assessment Enclosure ec: D.. Praudfoot (IVITO) 8, Jamieson (AECOM) ATTACHMENT# q - TOREPORT# QC-S 3 of~ 187 W x r _ z,2 e, x _ Y ~ ~ L' yj •r^ m .1 ~9 ~ ~ L fj t1 l'y +e C ~ I C> U Jl 4 u, C V ~ _3 ~ U J t% v` c w ."F tr ~ .`J r ~ C. s E CS "47 u k `z c C3. us - c u. m m+ a. c € i. G L..~ rv C.' fi CL 7 ~ 'c. 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Q: F 4 0 a ° $ D ~ w - c w z w Z O z ~ a 0 ~ O J a W J z 3S sewoyl is w W W V F Jpm z fyl) - xJ V aw tin O U V Q a w rc w w - a D w :a ~ ~x aOC~ w _ N o iS uap~e~ O ' z Z w 0 o 'a f a Z W 0: U) > J Z J w cai Q F Z y Q i UJn S g r pb q4 d m F N 7[~ O f iS a o w CD J m C is IF > Q ~ i aue, ti~uno~ ! m P2! uo!;euujo,.) . s rn*t S N T U =s ° °j IT Pa 96P!2! a~ie-! 7 i 4 , c rd4 - ca l j Ir 3 o~lywood Ct ' , I, 7 d augapiS P 1 'tis 1 a g`~-Ailytino7L aua, ljl ao_ t _ O 1 f . } ♦O $ _ j T _ rte. U Tur obon';'t 4 I• I r j_ .9ply N~21ia-Ie~u=~N _ n P21 F IpnV 1 o 3 ' o. a v+. ' cpeWloplg S 1a42L ~ y a /a66n ~ ~'•aa _ Cr c ujoles i 1 ~ & I I2 m S i , Y I~ W ~ ~i. ° z I o f'f V O 1 f I 1 ' .~.1 m tll ~ I ! -st' LL u m 1 I _I ~ rl I i=~cWi~w ~ i I60U ~~,5 - i ~2 Ctq REPORT TO EXECUTIVE COMMITTEE TAT 1 ICKERIlyG Report Number: CS 40-09 Date: October 13, 2009 b From: Gillis A. Paterson Director, Corporate Services & Treasurer. Subject: Tender / Contract Approval - Councils' Summer Recess Recommendation: 1. That Report CS 40-09 of the Director, Corporate Services & Treasurer regarding tender and contract approvals during Councils' Summer Recess be received; and, 2. Council pass a resolution ratifying the approval of the Tenders and Contracts by the Chief Administrative Officer contained in this Report during Council's summer recess being Tender No. T-11-2009 Durham Purchasing Co-operative for the Supply and Delivery of Culvert; Tender No. T-13-2009, Supply and Delivery of. Fire Rescue Equipment; Tender No. T-16-2009, Asphalt and Concrete Repairs; Tender No. T-20-2009, Supply and Delivery of Two (2) One-Ton Dump Trucks; and Tender No. T-21-2009, Reconstruction of Luna Court. Executive Summary: Council is required to approve contracts awarded by the Chief Administrative Officer during recesses of Council. The tender and contract approvals contained in this report were approved by the Chief Administrative Officer during the summer recess of Council which met City Policy and were within the approved Budget. Financial Implications: There are no financial implications pertaining to this report as those projected costs that exceeded Budget totaling $17,986 are more than offset by those that were under budget, totaling $44,158. This results in a total net under expenditures of $26,172. Sustainability Implications: In accordance with sustainability initiatives and with the G.I.P.P.E.R.'s (Governments Incorporating Procurement Policies to Eliminate Refuse) Guide 3rd Edition, October, 2002, a waste management plan was requested by the City and received from the contractor undertaking the work for Asphalt and Concrete Repairs (T-20-2009) and Reconstruction of Luna Court (T-21-2009). Background: On May 21, 2002 Council passed Resolution #8,0/02 Item 4 authorizing the Chief Administrative Officer act in Council's approving capacity on behalf of Council during any recess, break or absence of City Council, which states in part: Report CS 40-09 Date: October 13, 2009 Subject: Tender / Contract Approval Page 2 97 - Councils' Summer Recess "2. That, subject to the Council approved Purchasing Policy & Procedures, the Chief Administrative Officer be authorized to act in Council's approval capacity on behalf of Council during any recess, break or absence of City Council on the condition that: (a) such actions are in compliance with the Purchasing Policy & Procedure as approved under Resolution 136102, and (b) the costs thereof are within the budget previously approved by Council, and (c) a report respecting those approvals is subsequently submitted to Council." Circumstances were such that four Tenders required approval by the Chief Administrative Officer during Council's summer 2009 recess. It is recommended that Council receive this Report for information and ratify the approval of Tender No. T-11-2009. Durham Purchasing Co-operative - Supply and Delivery of Culvert; Tender No. T-13-2009, Supply and Delivery of Fire Rescue Equipment; Tender No. T-16-2009, Asphalt and Concrete Repairs; Tender No. T-20-2009, Supply and Delivery of Two (2) One-Ton Dump Trucks; and Tender No. T- 21-2009, Reconstruction of Luna Court. Therefore, under authority of the foregoing, the following was approved by the Chief Administrative Officer during the "summer recess" of Council: Tender No. T -11 - 2009, Tender for the Durham Purchasing Co-operative for the Supply and Delivery of Culvert The low bid Tender No. T - 11 - 2009 submitted by Atlantic Industries be approved. Financial Implications: 1. TENDER AMOUNT T-11-2009 $32,611.93 GST 1,630.60 PST 2,608.95 Sub-Total 36,851.48 GST Rebate (1,630.60) Total $35,220.88 2. APPROVED SOURCE OF FUNDS 2009 Roads Current Budget Item Account Code Source of Funds Budget Required Supply & 2320.2408.0003 Project funded from Delivery of 2009 Current Budget. $25,000 $35,220.88 Culvert Partially offset by Revenue. FUNDS AVAILABLE' $25,000 $35,220.88 Report CS 40-09 Date: October 13, 2009 Subject: Tender / Contract Approval Page 3 - Councils' Summer Recess 198 3. ESTIMATED PROJECT COSTING SUMMARY T-11-2009 - Tender for the Durham Purchasing Co-operative for the Supply & Delivery of Culvert product Associated Costs Tender Cost (T-11-2009) Supply & Delivery of $94,098.41 Culvert product City of Pickering's portion of the Durham $32,611.93 Purchasing Co-operative Supply & Delivery of Culvert product Total Costs - Supply & Delivery of Culvert $32,611.93 product GST 1,630.60 PST 2,608.95 Total Gross Cost 36,851.48 GST Rebate (1,630.60) Total Net Cost $35,220.88 Project Cost under (over) approved funds by ($10,220.88) Tender No. T-13-2009, Supply and Delivery of Fire Rescue Equipment; The low bids Tender No. T - 13 - 2009 submitted by vendors identified in Attachment 1 be approved. Financial Implications: 1. TENDER AMOUNT T-13- 2009 Supply & Delivery of Fire Rescue Equipment $129,779.30 PST Exempt GST 6,488.96 Total Gross Purchase Cost $136,268.26 GST Rebate (6,488.96) Total Net Purchase Cost $129,779.30 1 Report CS 40-09 Date: October 13, 2009 Subject: Tender / Contract Approval Page 4 19 9 - Councils' Summer Recess Under Council Report No. OES 42-08, a total of $1,260,000 was approved for the purchase of a Heavy Rescue Vehicle for Fire Services of which $607,900 was for associated equipment. This quote was for a portion of that equipment. The total combined costs for all equipment purchased to date is within the approved funding. Tender No. T-16-2009, Asphalt and Concrete Repairs; The low bid tender of Serve Construction Limited be approved. 1. TENDER AMOUNT T-16-2009 $145,265.00 GST 7,263.25 Sub Total 152,528.25 GST Rebate (7,263.25) Total $145,265.00 2. APPROVED SOURCE OF FUNDS 2009 Roads Current Budget Item Account Code Source of Funds Budget Required Asphalt & Concrete Repair Program 2320.2408.0002 Property Taxes $100,000 $100,000 Walkway repairs 2718.2482.0000 Property Taxes 25,000 25,000 Concrete and 2132.2482.0000 Property Taxes 10,000 10,000 asphalt walkways Newspaper Pads 2613.2407.0000 Property Taxes 2,500 2,500 FUNDS AVAILABLE $137,500 $137,500 3. ESTIMATED PROJECT COSTING SUMMARY T-16-2009 - Tender for Asphalt and Concrete Repairs Associated Costs Tender Cost (T-16-2009) Supply & Delivery of Asphalt and Concrete Repairs $145,265.00 GST 7,263.25 Total Gross Cost 152,528.25 GST Rebate (7,263.25) Total Net Cost $145,265.00 Project Cost under over approved funds b $7,765.00 Report CS 40-09 Date: October 13, 2009 Subject: Tender / Contract Approval Page 5 - Councils' Summer Recess G 0 0 Tender No. T-20-2009, Supply and Delivery of Two (2) One-Ton Dump Trucks The low bid tender of Colombo Motors LP be approved. 1. APPROVED SOURCE OF FUNDS 2009 Roads Current Budget Item Account Code Source of Funds Budget Required Replace Unit 5320.0901.6157 Invest in Ontario Grant $60,000 $44,670.96 #030 1999 Ford F350 One-Ton Dump Truck. Replace Unit 5780.0904.6157 Project Funded by $60,000 $44,670.96 #720 Property Taxes 1994 Ford F350 One-Ton Dump Truck FUNDS AVAILABLE $120,000 $89,341.92 2. TENDER AMOUNT AND ESTIMATED PROJECT COSTING SUMMARY T-20-2009 $82,524.00 Air Conditioning Tax 200.00 Sub Total 82,724.00 GST 4,136.20 PST 6,617,92 Sub-Total 93,478.12 GST Rebate (4,136.20) Total $89,341.92 Total Cost Per Unit $44,670.96 Project Cost under (over) approved funds by $30,658.08 Report CS 40-09 Date: October 13, 2009 Subject: Tender / Contract Approval Page 6 20 1- Councils' Summer Recess Tender No. T-21-2009. Reconstruction of Luna Court The low bid tender of C.Valley Paving Limited be approved. 1. TENDER AMOUNT T-21-2009 $ 98,169.50 GST 4,908.48 Subtotal $103,077.98 GST Rebate (4,908.48) Total $ 98,169.50 2. APPROVED SOURCE OF FUNDS 2008 Roads Capital Budget Item Account Code Source of Funds Budget Required Luna Court 5320.0823.6250 Provincial T.I. Grant $125,000 $111,500 FUNDS AVAILABLE $125,000 $111,500 3. ESTIMATED PROJECT COSTING SUMMARY T-21-2009 - Tender for Luna Court Reconstruction , $98,170 Associated Costs Miscellaneous Costs 830 Materials Testing 2,500 Construction Contingency 10,000 Total 111,500 GST 5,575 Total Gross Project Cost 117,075 GST Rebate (5,575) Total Net Project Cost $111,500 Project Cost under (over) approved funds by $13,500.00 Report CS 40-09 Date: October 13, 2009 Subject: Tender / Contract Approval Page 7 - Councils' Summer Recess 202 Attachments: 1. Operations & Emergency Services Memorandum, MP&E Division, July 14, 2009 2. Operations & Emergency Services Memorandum, Fire Services Division, July 20, 2009 3. Operations & Emergency Services Memorandum, MP&E Division, August 24, 2009 4. Operations & Emergency Services Memorandum, MP&E Division August 20, 2009 5. Operations & Emergency Services Memorandum, MP&E Division August 20, 2009 6. Resolution #80/02, Item #4 7. Resolution #85/00, Item #1 Prepared By: Approved / Endorsed By: y Vera A. Felg macher Gillis A. Paterson C.P.P., CPPO, CPPB, C.P.M., CMM III Director, Corporate Services & Treasurer Manager, Supply & Services GAP:vaf Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Co n ' c. d 0 T s J. Quinn, MR. C M III Chief Administrative Office City off? ATTACHMENT#-L-TOi r0RT# CS y M i - : RI 7G PICKERING MEMO 29 G PCf _ SERVICES To: Thomas.J. Quinn July 14, 2009 Chief Administrative Officer Thomas Melymuk I,i, (Acting) Chief Administrative Officer From: Everett Buntsma Director, Operations & Emergency Services Copy: Director, Corporate Services & Treasurer Division Head, Municipal Property & Engineering ✓ Superintendent, Municipal Operations .Supervisor, Roads Operations Subject: Tender No. T-11-2009 Tender for Supply & Delivery of Culvert File. A-1440 A co-operative tender with Durham Purchasing Co-operative has been received which closed on Wednesday, June 17, 2009 for the supply and delivery of culvert product for repair and maintenance activities. Eight bidders obtained packages and three companies submitted a bid. The lowest bid submitted was from Atlantic Industries Limited in the amount of $94,098.41 (GST/PST included) of which $36,851.48 (GST/PST included) is the City of Pickering's portion. The total net cost is estimated to be $35,220.88 to the City (net of GST.rebate) and will be funded from the 2009 Current Budget. Recommendation: 1: That Tender T-11-2009 submitted by Atlantic Industries Limited in the amount of for $94,098.41 (GST/PST included) of which $36,851.48 (GST/PST included) is the City of Pickering's portion be approved for the period July 1, 2009 to June 30, 2010 and be subject to annual review and extension to. the contract by the Manager, Supply & Services at agreed upon percentage rates up to the maximum increase indicated by the bidder in the form of tender; 2. That the total gross cost for the City's portion of $36,851.48 (GST/PST included) including the tender amount and other associated costs and the total net cost of $35,220.88, be approved; 3. That the Director, Corporate Services & Treasurer be authorized to finance the project as follows: a) the sum of $35,220.88 to be funded from the 2009 Current Budget; 4. That the Director, Corporate Services & Treasurer be authorized to take any actions necessary in order to effect the foregoing; and 204 5. That the appropriate City of Pickering officials be authorized to take necessary action to give effect hereto. Executive Summary: As part of the 2009 Roads Current Budget, Pickering's estimated portion of the Durham Purchasing Co-operative for the Supply and Delivery of Culvert product was approved for repair and maintenance activities. Tender T-11-2009 was issued on Monday, June 1, 2009 and closed on Wednesday June 17, 2009 with eight bidders obtaining tendering packages, and three companies submitting a bid. The Operations & Emergency Services Department, Municipal Property & Engineering Division recommends acceptance of the low bid received from Atlantic Industries Limited in the amount of $94,098.41 (GST/PST included) of which $36,851.48 (GST/PST included) is the City of Pickering's portion. The total net cost is estimated to be $35,220.88 to theCity (net of GST rebate). The City's purchasing policy requires staff to Report to Council on results of the tender and financing in order to proceed with this project in a timely manner. The Chief Administrative Officer has the authority to accept this tender during summer recess of Council. Financial Implications: 1. TENDER AMOUNT T-11-2009 $32,611.93 GST 1,630.60 PST 2,608.95 Sub-Total 36,851.48.. GST Rebate (1,630.60) Total $35,220.88 2. . APPROVED SOURCE OF FUNDS 2009 Roads Current Budget Item Account Code Source of Funds Budget Required Supply & 2320.2408.0003 Project funded from Delivery of 2009 Current Budget. $25,000 $35,220.88 Culvert Partially offset by Revenue. FUNDS AVAILABLE $25,000 $357220.88 July 14, 2009 Page 2 Tender No. T-11-2009 Tender for Supply & Delivery of Culvert 3. 205 ESTIMATED PROJECT COSTING SUMMARY T-11-2009 - Tender for the Durham Purchasing Co-operative for the Supply & Delivery of Culvert product Associated Costs Tender Cost (T-11-2009) Supply & Delivery of Culvert product $940098.41 City of Pickering's portion of the Durham Purchasing Co-operative Supply & Delivery of $32,611.93 Culvert product Total Costs - Supply Delivery of Culvert $32,611:93 product GST 1,630.60 PST 2,608.95 Total Gross Cost 361851.48 GST Rebate (1,630.60) Total Net Cost 35,220.88 Project Cost (under) over approved funds by $10,220.88 The total estimated net cost has exceeded the approved budget, however, the tender is based on estimated quantities for a wide array of products that may or may not be purchased. The City will only purchase product that is required and will be cognizant of budget limitations. Tender T-11-2009 provides pricing for the period of July 1, 2009 to'June 30, 2010 with the option to extend for yearn commencing July 1, 2010 and expiring June 30, 2011 and an option to extend to year 3 commencing July 1, 2011 and expiring June 30, 2012. An extension is subject to the. Durham Purchasing Co-operative Group's approval of the company's proposed price increase, and the company's.satisfactory performance, not withstanding the approval of the participants governing bodies in accordance with terms and conditions of the tender. Maximum price increases, in percentage, have been indicated by the bidder for year 2 and year 3. For the City of Pickering, the 2010 and 2011 current budgets will reflect the amounts in the awarded contract. The Director Corporate Services & Treasurer has reviewed the budgetary implications and the financing of the expenditures contained in this report and concurs. July 14, 2009 Page 3 Tender No. T-11-2009 Tender for Supply & Delivery of Culvert Sustainability Implications: 206 As part of our Sustainable Roads program, the supply & delivery of culvert products meets the City's requirement for sustainability. Atlantic Industries Limited products meet current environmental standards. This project will reduce maintenance requirements and cost in the future. Background: As part of the 2009 Current Budget, Pickering's estimated portion of the Durham Co-operative for the Supply & Delivery of culvert product was identified for repair and maintenance activities. Tender T-11-2009 was issued on Monday, June 1, 2009 and closed on Wednesday, June 17, 2009 with eight bidders obtaining tendering packages and three companies submitting a bid. The low bid was received from Atlantic Industries Limited in the amount of $94,098.41 (GST/PST included). The total gross tender cost for the City's portion of the project is estimated to be $36,851.48 for an estimated net cost to the City of $35,220.88 (net of GST rebate). References for Atlantic Industries Limited have been checked and are deemed acceptable by the Supervisor, Roads Operations. The Health & Safety Policy, current WSIB NEER Firm Summary Statement, Certificate of Clearance issued by Workplace Safety & Insurance Board and Certificate of Insurance as submitted by Atlantic Industries Limited have been reviewed by the Coordinator, Health & Safety and are deemed acceptable.. Concurrence of the recommendation to award to Atlantic Industries Limited has been received from all Durham Purchasing Cooperative participating agencies. In conjunction with staffs check of references submitted on this project, the tender is deemed acceptable. Upon careful examination of all tenders and relevant documents received, the Operations & Emergency Services Department, Municipal Property & Engineering Division recommends the acceptance of the low bid submitted by Atlantic Industries Limited for Tender T-11-2009 in the amount of $36,851.48 (GST/PST included) and that the total net project cost of $35,220.88 be approved. This report has been prepared in conjunction with the Manager, Supply & Services who concurs with the foregoing. Attachments: 1. Supply & Services Memorandum dated June 19, 2009. July 14, 2009 Page 4 Tender No. T-11-2009 Tender for Supply & Delivery of Culvert 1 Prepare By: Approved/Endorsed By: t Supervisor, Roads erations Everett Buntsma, Director Operations & Emergency Services (S erintendent, Municipal Operations Rich rd Holbor , Division Head Mu icipaI Property & Engineering Vera A. Felgemacher Gillis A. Paterson, Director C.P.P., CPPO, CPPB, C.P.M., CMM III Corporate Services & Treasurer Manager, Supply Services RH:cr Attachment: Supply & Services Memorandum dated June 19, 2009 A 1 plS r r! µ1E Pp , ~ L L G July 14, 2009 Page 5 Tender No. T-11-2009 Tender for Supply & Delivery of Culvert caq oo 2 0 8 NICKERING MEMO To: Richard Holborn June 19, 2009 Division Head, Municipal Property & Engineering From: Vera A. Felgemacher Manager, Supply & Services Copy: Subject: Tender No. T-11-2009 Tender for Supply & Delivery of Culvert Closing:. June 17, 2009 The City of Pickering is the Calling Agency on behalf of. the Durham Purchasing Co-operative for the Supply and Delivery of Culvert product. Tenders have. been received for the above project. Eight companies were provided tendering packages via courier. An advertisement was placed on the City's Website. One bidder's package was returned marked "moved" with. no forwarding information and one bidder responded "unable to bid". Three acceptable bids were submitted for this project. A copy of the Record of Tenders Opened and Checked used at the public tender opening is attached. Tenders shall be irrevocable for 60 days after the official closing date and time. Purchasing Procedure No. PUR 010-001, Item 10.03 (r) provides checking tendered unit prices and extensions; unit prices shall govern and extensions will be corrected accordingly, which has been done. No bid deposit was required for this tender. The attached summary indicates that the City's portion of this. co-operative call is valued at $32,611.93 (GST/PST extra). The total bid for all Agencies combined is $94,098.41 (GST and PST included). Each Agency has been provided with a copy of the bids submitted, Record of Tenders Opened and Checked and Summary per participant and in total. Each Agency is requested to review and provide concurrence to award the work to the overall low bidder. Once all Agencies have responded, this information will be provided to you for inclusion in your report to Council: LO9 Pursuant to Information to Bidders Item 20, the following will be requested of the low bidder for your review during the evaluation stage of this tender call (a) a copy of the currently dated Health and Safety Policy to be used on this project; (b) a copy of the current Workplace Injury Summary Report issued by Workplace Safety & Insurance Board (in lieu of the Workplace Injury Summary Report document, a copy of the current CAD 7, NEER, or MAP reports may be submitted); (c) a copy of the current Certificate of Clearance issued by Workplace Safety & Insurance Board; (d) the City's Certificate of Insurance completed by the bidder's agent, broker or insurer; Include the following items in your Report to Council: (a) if items (a) through (d) noted above, are acceptable to the Co-ordinator, Health & Safety (b) any past work experience with Atlantic Industries Limited including work location; (c) without past work experience, if reference information is acceptable; (d) the appropriate account number(s) to which this work into be charged; (e) the budget amount(s) assigned thereto; (f). Treasurer's confirmation of funding; (g) related departmental approvals; (h) any reason(s) why the low bid of Atlantic Industries Limited is not acceptable; and (i) related comments specific to the project. Please do not disclose any information to enquiries except you.can direct them to the City's website for the unofficial bid results as read out at the Public tender opening. Bidders will be advised of the outcome in due course. If you require further information, please feel free to contact me or a member of Supply & Services. VF/jh Attachments I June 17, 2009 Tender No. T=11-2009 Page 2 Tender for Supply & Delivery of Culvert I 210 cn cn ncn cn cn o 0 O Z0 O 0 - o z z OZ z z a m v c) 07 D C O O C7 z O .n -n O Z n n D m c ~ :o 0 Co Ju D z D O r c 'cn -I --I -I co cn o C7 o ' D d 40 69 69 69 A O W ~ N N A O N cn cr, N ON J 3 O. W N J W. N.. O M D. A co rn i0 O c0 Iv Ut N .a W CA W W co O 1 N' n d 69 fA 69 EA co EA W -co t~Jt d A O A 4~. N W . CL -C) -4 m co -4 w co ~p W W u, co d A rn v O o -4 C. W O N v p~j pOp . ' ro D v~ fn 69 .69 69 4~1 61 su .a Oo U1. O 4 N (V , 3 n Oo co a O N cc) O m LTf cn W O Q p O N a r En (0 W W p ? W cn O O co J CD CL 211 n ~ n D D CD CD m j~ :3 ro n o. -C 0 CD CD D _ a o . ' < . . Z m co 0 a CD CD o n m %1 Z N N p Z c ~ N n p lA v c ~ ~ . -gyp 'tt1 CD ;'F rn N c 171 a. C Cau ;U ® . C 0, ® M ~ m Iu o. ZC) f7 z O - D X17 . m z I I caq Oct M PICKERING MEMO 212 To: Thomas J. Quinn July 20, 2009 Chief Administrative Officer Thomas Melymuk (Acting) Chief Administrative Officer From: Everett Buntsma Director, Operations & Emergency Services Copy: Director, Corporate Services & Treasurer Fire Chief Deputy Fire Chief, Training & Fire Prevention Manager, Supply & Services Subject: Tender No. T-13-2009 Tender for Supply & Delivery of Fire Rescue Equipment File: A-1440-001-09 Tender T-13-2009 for the supply & delivery of Fire Rescue Equipment, was issued on June 22,. 2009 and closed on Wednesday, July 8, 2009. Seventeen bidders obtained bid packages and ten companies submitted. a bid. This tender required bidders to submit. pricing on various equipment which had been categorized into.eighteen separate sections. The total of the lowest bids submitted is in the amount of . $136,268.26 (GST included/PST exempt). The total net cost is $129,779.30 (net of GST rebate). Attachment.1 provides a summary of the lowest bids submitted for each category. Recommendation: 1. That Tender T-13-2009, submitted for the supply & delivery of Fire Rescue Equipment by the vendors identified in Attachment 1, at a total cost of $136,268.26 (GST included) be accepted; 2. That the total gross purchase cost of $136,268.26 .(GST included) and the total net purchase cost of $129,779.30 be approved; and, 3. That the appropriate officials of the City of Pickering be given the authority to give effect hereto. ,21 3 Executive Summary: Report to Council OES 42-08 was approved by Council on December 15, 2008. That Report approved the purchase of a Heavy Rescue Vehicle and associated equipment. That report also indicated that subsequent reports on equipment would be forthcoming. The City's purchasing policy requires staff to Report to Council on the results of the tender and financing in order to proceed. The Chief Administrative Officer has the authority to accept this tender during summer recess of Council. Financial Implications: Tender- T-13- 2009 Supply & Delivery of Fire Rescue Equipment $129,779.30 PST Exempt GST 6,488.96 Total Gross Purchase Cost $136,268.26 GST Rebate (6,488.96) Total Net Purchase Cost $129,779.30 The total financing. for the associated costs (Extrication Tools, Fire Rescue Equipment, High Angle Equipment and IceMater Rescue Equipment) related to the Heavy Rescue Vehicle was addressed under Council Report OES 42-08 in the amount of $607,900. The amount of financing included in Recommendation 2 of this report confirmed the amount required for the Fire Rescue Equipment component only. The other associated equipment has been sourced through separate quotes. The total combined costs for all equipment purchased to date is within the approved funding. The Director, Corporate Services & Treasurer has reviewed the budgetary implications and.the financing of the expenditure;contained in this report and concurs. Sustainability Implications: This equipment incorporates the latest technology pertaining to recycled and reusable materials, rechargeable batteries and non-corrosive lubricating oils. This equipment may be used in multiple operations and has an expected long service life. Background: The purchase of a Heavy Rescue Vehicle and associated Fire Rescue Equipment was identified and approved by Council per Resolution #262/08. Tender T-13-2009 was prepared to provide a competitive bid for the provision of Fire Rescue Equipment to complete. the equipping of the Heavy Rescue Vehicle. This equipment can be provided by suppliers that do not have sole rights to the equipment required to complete the outfitting of the Heavy Rescue Vehicle. July 20, 2009 Page 2 Tender No. T-13-2009 Tender for Supply & Delivery of Fire Rescue Equipment Upon careful examination it. i the recommendation of Pickering , ire Services that the low bid from the vendors identified` in the Supply & Services summary, Attachment 1, in the amount of $1361268.26 (GST included) be accepted and the net purchase cost of $129,779.30 be an'TvT1pd. The supply and delivery of the Fire Rescue Equipment reported under this report.represents the final major component of the associated costs identified in OES 42-08 for the Heavy Rescue Vehicle. The internal loan amount required for the financing of the associated costs can now be finalized and Corporate Services will now prepare the official promissory note. This report has been prepared in conjunction with the Senior Purchasing Analyst who concurs with the foregoing. Attachments: 1. Summary of Low Bid - T-13-2009 Supply & Delivery of Fire Rescue Equipment 2. Supply rvices Memorandum dated July 9, 2009 3. Rec of T riders opened and checked Prepa Approved / Endors d By: Gord Ferguson Everett a Deputy Fire Chief Director, Operations & Emergency Services Training & Fire P vention x Mike Gamba Bill Douglas Ch' Tr g Officer Fire ief . f Bi6b Ku ma iilis A. Paterson Senior Purc sing Analyst Director, Corporate Services & Treasurer MG:nrm Attachments Recommended for the consideration ~t of Pickering City Council 2 00, Tho as . Quinn, RD W, C III / Chief Administrative Officer July 20, 2009 Page 3 Tender No. T-13-2009 Tender for Supply & 'Delivery of Fire Rescue Equipment I-I TIC.' A me nT _I.- Summary of Low Bia - T-13 -2009 - Supply & Delivery of Fire Rescue Equipment 215 Section Bidder Amount 1 ResQTech Systems $4,646.00 .2 M&L Supply $54,376.00 3 Canadian Safety Equipment $3,731:75 4 Canadian Safety Equipment $5,863.00 5 Canadian Safety Equipment $2,760..00 6 Commercial Solutions $2,458:10 7. Canadian Safety Equipment $15,836.00 :8 Commercial Solutions $5,220.00 : 9 Commercial-Solutions .$1,388.50 x:10 A.J. Stone $1,848.00 ~,,i 1 Canadian Safety Equipment $1,160.00 2 Commercial Solutions $20,032.00 13 No Bid 14 Canadian Safety Equipment $3,330.95 15 No Bid J 6 Commercial Solutions $555.00 x:17 Canadian Safety Equipment $663.00 ,1"8 A.J. Stone Co. $5,911.00 Sub Total $129,779.30 GST 6,488.96 Total $136,268.26 21 6 I ~KE RIND MEMO To: Bill Douglas July 9, 2009 Fire Chief RECEIVED— ~ JUL 1 3 2009 From: Vera A. Felgemacher . Manager, Supply & Services Fire Services pickerinq Copy: Subject: Tender No. T-13-2009 - Tender..for Supply and Delivery Fire Rescue Equipment ' Closing: July 8; 2009 Tenders. have.been received for the above project. Seventeen (17) companies were invited to participate. An advertisement was placed on the City's Website. Ten (10) bidders responded and submitted a tender for this project. A copy of the Record of Tenders Opened and Checked used at the public tender opening is attached. Tenders shall be irrevocable for 60 days after the official closing date and time. Purchasing Procedure No.. PUR 010-001, Item 10.03 (r) provides checking tendered unit prices and extensions; unit prices shall govern and extensions will be corrected accordingly, which has been done. Copies of the tenders are attached for your review along with the summary of costs. Information to Bidders Item # 5 states: The bidder may bid on any or all sections - No. 1 to No. 20 as stated on Specification pages S-2 to S-5. All items in any or all sections must be bid complete. and information must -be provided where requested, unless otherwise specified. Specifications - Item. 43 states: Pricing shall be on listed equipment only. No substitutions will be accepted. SUMMARY 2 7 GST extra/PST exempt Canadian ResQTech Commercial Class A Fire & A.J. Stone Ltd. Safety M&L Supply Rescue Equipment Systems. Inc Solutions Section UNABLE TO BID 1 5;520.00 x,646.00 2 54,3` 6.00 3 3, 731.75;. 5,650.00 4 5;863.00 6,203.03 5 2760.OQ 6 3,396.00 2,458.10 7 15,836,0 C}i 8 5,220.04 9 1,445.00 1,3 88 5d 10, i848,00, 2,110.00 11 1,160 00' 12 21,930 00 20,032 00 13 ` _ 14 4 390 00 3,330 95 4,156.00 ~ 3,444.50 15 l~Id 16 895.00 585.00 5:55 00 17 .675.00 663,00 725.00 715.00 850.00 18. $191 1.00 Low Bid Summary: Section #1 - ResQTech Systems Section #10 - A.J. Stone Section #2 - M&L Supply Section 411 -.Canadian Safety Equipment Section #3.- - Canadian Safety Equipment Section #12 - Commercial Solutions Section #4 - Canadian Safety Equipment Section #13 -No Bid Section #5 - Canadian Safety Equipment Section #14 - Canadian Safety Equipment. Section #6 - Commercial Solutions Section #15 = No Bid Section #7 Canadian Safety Systems Section #16 - Commercial Solutions Section #8 - Commercial Solutions Section #17.- Canadian Safety Equipment Section #9 - Commercial Solutions Section #18 - A.J. Stone Co. Tenders received.from the following bidders were rejected. Bidder Reference Aero Fire Automatic rejection Addenda not acknowledged. Reference: Purchasing By-law No. 5900Procedure No. PUR 010-001, 10,04, Items 7-(1.2), IB 3(b), IB 1.8, IB 19,16 20, Addendum 43. Acklands- Automatic rejection - Bid qualified/restricted by. an attachmentladded Grainger statement (Limitation of Liability). Reference: Purchasing By-law No. .5900-01, Procedure No. PUR 010-001, 10.04, Items 7-(5), 7-(15); IB 18, 16 15, I R 19, I B 20. July 9, 2009 Tender No. T-13-2009 Page 2 Tender for Supply and Delivery of Fire Rescue Equipment 21 18 Bidder Reference International Automatic Rejection - Revised Page S-4 not completed and returned - Safety bid received on documents other than those provided in the request. Bid Systems contains alterations to the bid document not call for. Failure to return documents as specified. Reference: Purchasing By-law No. 5900-01, Procedure No..PUR 010-001, 10.04, Items:7-(6), Item 7-(15) IB 3(b), IB 18, IB 19, IB 20, Addendum #2. Century Vallon Automatic rejection - Bid contains alterations to bid document (Page S-3, Page Revised S-4) not called for. Failure to return documents as specified. Reference: Purchasing By-law No. 5900-01, Procedure No. PUR 010-001,10.04, Item 7-(15); IB 3b, IB 15, IB 18, IB 19, IB 20. Code 4 Fire Automatic rejection.- Late - Bid received after the specified closing date .Rescue and time. Reference: Purchasing By-law No. 5900-01, Procedure No. PUR 010-001, 10.04, Item 7-(1), IB 1, IB 14, IB 19, IB 20. Include the following items in your Report to Council: (a) without past work experience, if reference information is acceptable; (b) the appropriate account number(s) to which the equipment is to be.charged; (c) . the budget amount(s) assigned thereto; (d) Treasurer's confirmation of funding; (e) related departmental approvals; (f) any reason(s) why the low bids are not acceptable; and (g) related comments specific to the project. Note CAO may approve an award of a tender during Recess of Council. Your report. to CAO should include the same information and be in the same format as if reported to Council.. Please do not disclose . any information to enquiries except you can direct them -to the City's website for the. unofficial bid results as read out at the Public tender opening. Bidders will be 'advised of the outcome in due course. If you require further information, • please feel free to contact me or a member of Supply & Services VAF/bk Attachments July 9, 2009 Tender No. T-13-2009 Page 3 Tender for Supply and Delivery of Fire Rescue Equipment z a O . E d N 219 a Q c ~ •a ti _9 ~r C:i J 1 f r- LU fV X O d ~ y d Z m Q E co yy - . ~ N S Q Q O C1 C( U 0 N w w a) U : s:r 6 w Q ~ z U ww 0 U ww U o a rn z O o E 7 0 N U H z L LL CD LL U U w N ; w ti a N r, I W cJ S^. U w E rn - - - LLI ~ cv 3 1L 0 \0 O Q O w J Z W o -a w ~ I zz w Q Ch N J u_ tl Cl) a U •C _ O N c) 4zl, LO cp t~ - co C14 V, Lr) CZ) (0) o z ~ rn o u 220 Q Q i i +0- O <f O Q Z ~ % Q E - N aci 1-c E f= a ¢ i ` CD - 0 0 co 7 W ~ m W ~ L U Z 0 - p YW jj Z ~e W o U d S' z I1' N c o 11.E - „ C li Ow < Q t- Z o U z V~+ W O c c O Z rt` l J T+l t C) W W v c++'y ~ N 3 y✓t - .O ¢ .a T W Z _j y~ w W a> Q rn W z d v i ; LL U) ? `u d N CO rY Lo cp tl- co m L Cfl fl- co c r cm a] z a 221 Q Ur 4 E a N X U d Z Q E ai ~ ~ X11 rn CD 04 m C 0o p 0 T y IN, CU cn w s `J4 t~ Q ,N d. "ISL. "~t+ Ih 1~1 er-' Z y rf v J t uj _ Yw 1.1 Z W Cn E r~ a Z O p v N m l/~, - ~w QZ~ p F-- Q - Z o J Z ~ a • w J 06 U U) W O a Q } w N Z o LU O w U Z kt W CL LL CL U 4v - :y j LL .ti~ n Q U U N U r N Cl) tf) CD ti co M CD C,4. M - Lo CD t` N n U) vl City v~ PUTACHMENT 3 TO REPORT # 222 PICKERING j MEMO a r G ~ . To: Thomas J. Quinn sAugust 24, 2009 Chief Administrative-cer e~ From: Everett Buntsma -~U Director, Operations & Emergency erv' es - Copy: (Acting) Chief Administrative Offic, r Director, Corporate Services & Trea urer Division Head, Municipal Property & Engineering Superintendent, Municipal Operations Supervisor, Roads Operations Subject: Tender No. T716-2009 Tender for Asphalt and Concrete Repairs File A-1440 Tenders have been received which closed on Wednesday, July 29, 2009 for the supply and delivery of asphalt and concrete repairs. Ten companies were invited' of which four companies submitted a bid. The lowest bid submitted was from Serve Construction Ltd in the amount of $152,528.25 (GST and PST included). The total net cost is estimated to be $145,265.00 to the City (net of GST rebate) and will be funded from the 2009 Current Budget. Recommendation: 1. That Tender No T-16-2009 submitted by Serve Construction Ltd for asphalt and concrete repairs in the amount of $152, 528.25 (PST and GST included) and the total net cost of $145,265.00 be approved.. 2. That the Director, Corporate Services & Treasurer be authorized to finance the project as follows: a) the sum of $145,265.00 to funded from. the 2009 Current Budget 3. That the Director, Corporate Services & Treasurer be authorized to take any actions necessary in order to effect the foregoing; and 4. That the appropriate City of Pickering officials be authorized to take necessary action to give effect hereto. 223 Executive Summary: As part of the 2009 Roads Current Budget, a line item was approved for an asphalt and concrete repair program. Tender T-16-2009 was issued on Monday, July 13, 2009 and closed on Wednesday, July 29, 2009 with four companies submitting a bid. The Operations & Emergency Services Department, Municipal Property & Engineering Division recommends acceptance of the low bid received from Serve Construction Ltd in the amount of $152,528.25 (GST and PST included). The City of Pickering purchasing policy requires staff to report to Council on the results of the tender and financing in order to proceed with this project in a timely manner. The Chief Administrative Officer has the authority to accept this tender during summer recess of Council. Financial Implications: 1. TENDER AMOUNT T-16-2009 $145,265.00 GST 7,263.25 Sub Total 152,528.25 GST Rebate 7 263.25 Total $145,265.00 2. APPROVED SOURCE OF FUNDS 2009 Roads Current Budget Item Account Code Source of Funds Budget Required Asphalt & Concrete. Repair Program 2320.2408.0002 Property Taxes. $100,000 $1,00,000 Walkway repairs 2718.2482.0000 Property Taxes 25,000 25,000 Concrete and asphalt 2132.2482.0000 Property Taxes 10,000 10,000 walkways Newspaper Pads 2613.2407.0000 Property Taxes 2,500 2,500 FUNDS AVAILABLE $137,500 $137,500 RECEIVED CITY OF PICKERIN(: AUG 2 7 2009 SUPPLY AND SERVICES August 24,2009 Tender for Asphalt and Concrete Repairs Page 2 Tender No. T-16-2009 3. 224 " ESTIMATED PROJECT COSTING SUMMARY T-16-2009 - Tender for Asphalt and Concrete Repairs Associated Costs Tender Cost (T-16-2009) Supply & Delivery of Asphalt and Concrete Repairs $145,265.00 GST 7,263.25 152,528.25 . Total Gross Cost GST Rebate (7,263.25) Total Net Cost $145,265.00 Project.Cost under (over) approved funds by ($7,765.00) The total estimated net cost has exceeded the forecasted budget; however, the tender is based on estimated quantities for a wide array of services and repair locations. The City will only undertake repairs that are critically required and will be cognizant of budget limitations. Other programs within the same account may be altered (reduced) in order. to compensate for additional expenditures for this program. The Director, Corporate Services & Treasurer has reviewed the budgetary implications and the financing of the expenditures contained in this report and concurs. Sustainability Implications: The supply & delivery of asphalt and concrete repairs meets the City's requirement for sustainability in our roads maintenance program. Serve Construction. Ltd meets current environmental standards. This program will reduce maintenance requirements and cost in the future and reduce liability. Background: As part of the 2009 Current Budget, an asphalt and concrete repair program was identified and approved. Tender T-16-2009 closed on Wednesday, July 29, 2009 with ten bidders obtaining tendering packages, and four companies submitting a bid. The low bid was received from Serve Construction Ltd in the amount of $152,528.25 (GST/PST included) for an estimated net cost,to. the City of $145,265.00 (net of GST rebate). August 24,2009 Tender for Asphalt and Concrete Repairs Page 3 Tender No. T-16-2009 RefNn~ces for Serve Construction Ltd have been checked and are deemed acceptable by the Coordinator, Roads & Maintenance Contracts. Serve Construction Ltd. has also provided satisfactory work for the City, most recently through Q-45-2008 for asphalt and concrete repairs. The Health & Safety Policy, current WSIB NEER Firm Summary Statement, Certificate of Clearance issued by Workplace Safety & Insurance Board and Certificate of Insurance as submitted by Serve Construction Ltd. have been reviewed by the Coordinator, Health & Safety and are deemed acceptable. In conjunction with staffs check of references submitted on this project and experience with this contractor, the tender is deemed acceptable. Upon careful examination of all tenders and relevant documents received, the Operations & Emergency Services Department, Municipal Property & Engineering Division recommends the acceptance of the low bid submitted by Serve Construction Ltd. for Tender T-16-2009 in the amount of $152,528.25 (GST/PST included) and that the total net project cost of $145,265.00 be approved. This report has been prepared in conjunction with the Manager, Supply & Services who concurs with the foregoing. Attachments: 1. Supply & Services Memorandum dated July 29, 2009. Prepared By: Approved/Endorsed By: Bill Starr.,'Coordinator Everett Bu.4 sni8r, Director Roads & Maintenance Contracts Operations & Emergency Services J n Hannah Ric and Hol orn, Division Head uperintendent, nicipal Operations M~'r icipal Property & Engineering Vera A. Felgemache Gillis A. Paterson, Director C.P.P., CPPO, CPPB, C.P:M., CMM III Corporate Services & Treasurer Manager, Supply & Services BS:aw August 24,2009 Tender for Asphalt and Concrete Repairs Page 4 Tender No. T-16-2009 I 226 I~;I . - I I PIC~ERIN MEMO. To: Richard Holborn July 29, 2009 Division Head, Municipal Property & Engineering From: Vera A. Felgemacher Manager, Supply & Services Copy: Coordinator, Infrastructure Maintenance Contracts Subject: Tender No. T-16-2009 Tender for Asphalt and Concrete Repairs Closing: July 29, 2009 Four (4) Tenders have been received for the above project. Ten (10) companies were invited to participate of which four (4) bidders responded and submitted a tender for this project. An advertisement was placed in the Daily Commercial News and on the City's Website. A copy of the Record of Tenders Opened and Checked used at the public tender opening is attached. Tenders shall be irrevocable for 60 days after the official closing date and time. Purchasing Procedure No. PUR 010-001, Item 10.03 (r) provides checking tendered unit prices and extensions; unit prices shall govern and extensions will be corrected accordingly, which has been done. SUMMARY. PST & GST included Bidder Total Tendered. Amount $ After Calculation Check $ Serve Construction Ltd. $152,528.25 $152,528.25 Royalcrest Paving $165,716.25 $165,716.25 Bennington Construction Ltd. $208,388.25 $208,388.25 Trisan Construction $228,252.05 $228,252.05 Pursuant to Information to Bidders Item 21, the following will be requested of the low bidder for your review during the evaluation stage of this tender call. Please advise when you wish us to proceed with this task. (a) a copy of the current and dated Health and Safety Policy to be used on this project; 227 (b) a -copy of the current Workplace Injury Summary Report issued by Workplace Safety & Insurance Board (in lieu of the Workplace Injury Summary Report document, a copy of the current CAD 7, NEER, or MAP reports may be submitted); (c) a copy of the current Clearance Certificate issued by Workplace Safety & Insurance Board; (d) the City's Certificate of Insurance shall be completed by the bidder's agent, broker or insurer; Include the following items in your Report to Council: (a) if items (a) through (d) noted above, are acceptable to the Co-ordinator, Health & Safety (b) any past work experience Serve Construction Ltd. including work location; (c) without past work experience, if reference information is acceptable; (d) the appropriate account number(s) to which this work is to be charged; (e) the budget amount(s) assigned thereto; (f) Treasurer's confirmation of funding; (g) related departmental approvals; (h) any reason(s) why the low bid of Serve Construction Ltd.is not acceptable; and (i) related comments specific to the project. Note - CAO may approve an award of a tender during Recess of Council. Your report to CAO should be in memo.format and include the same information as if reported to Council. Please do not disclose any information to enquiries except you can direct them to the City's website for the unofficial bid results as read out at the Public tender opening. Bidders will be advised of the outcome in due course. If you require further information, please feel free to contact me or a member of Supply & Services: wk Vera A. Felgemacher VF/j9 Attachments Tender No. T-16-2009 Tender for Asphalt and Concrete Repairs Page 2 228 Z , W o U CL N X Z O Z ❑ (6 Q U y W 0). N W s-. U iX W m U C O ❑ 0 N C) 6 'a 04 Z z ❑ W W uQi Q v W OW Ilk z cu 0310 ULLI ° 03 Q O a y 0 o (M C `p c' llz~ C a`) N ° Q 4 O \ W a m c co H o z `m c a~ -o E c Z ~ 'o U J N ~ U C U m C O O - O O w O w m V U U LLU N C 3 a) 0) 0 (n LY U- U) v 2 2 9 PICKERI MEMO To: Thomas J. Quinn . August 20, 2009 Chief Administrative, Officer cN,EF A~!' From: Everett Buntsma Director, Operations & Emergency Servi es Copy: .(Acting) Chief Administrative Officer Director, Corporate Services & Treasurer Division Head, Municipal Property & Engineering Superintendent, Municipal Operations Supervisor, Fleet Operations Subject: Tender No. T-20-2009 Tender for Supply & Delivery of Two (2) One-Ton Dump Trucks File: A-1440 Tenders have been received, which closed on Wednesday, July 22, 2009 for the supply and delivery of two One-Ton Dump Trucks. Seven companies were invited to bid of which six companies responded and submitted a bid. The lowest bid submitted was from Colombo Motors LP in the amount of $93,478.12 (PST and GST included) with a total net cost to the City of $89,341.92. Recommendation: 1. That Tender No. T-20-2009 submitted by Colombo Motors LP for the Supply and Delivery of two -(2) One-Ton Dump Trucks in the amount of $93,478.12 (PST and GST included) be accepted; 2.. That the total gross purchase cost of $93,478.12 (GST and PST included) and net purchase cost of $89,341.92 be approved; 3. That the Director, Corporate Services & Treasurer be authorized to finance the project as follows: a). that the purchase of one vehicle in the amount of $46,73.9.06 (PST and GST included) be funded from Invest Ontario Grant as identified in the 2009 Capital Budget; b) that the purchase of one vehicle in the amount of $46,739.06 (PST and GST included) be funded from Property Taxes as identified in the 2009 Capital Budget; 4. That the Director, Corporate Services & Treasurer be authorized to take any action necessary in order to effect the foregoing;. and 230. 5. That the appropriate City of Pickering officials be authorized to take necessary action to give effect hereto. Executive Summary: The replacement of City Unit #720 a 1994 Ford F350 Dump Truck and Unit #030 a 1999 Ford F350 Dump Truck has been identified and approved by Council in the 2009 Capital Budget for Parks and Roads respectively. These vehicles are utilized for a variety of maintenance work throughout the City. The City's purchasing policy requires staff to Report to Council on results of the tender and financing in order to proceed with this project in a timely manner. The Chief Administrative Officer has the authority to accept this tender during summer recess of Council. Financial Implications: 1. APPROVED SOURCE OF FUNDS 2009 Roads Current Budget Item Account Code Source of Funds Budget Required Replace Unit 5320.0901.6157 Invest in Ontario Grant $60,000 $44,670..96 #030 1999 Ford F350 One-Ton Dump Truck Replace Unit 5780.0904.6157 Project Funded by $60,000 $44,670.96 #720 Property Taxes 1994 Ford F350 One-Ton Dump Truck FUNDS AVAILABLE $120,000 $89,341.92 RECEIVED CITY OF PICKERING AUG 2 7 2009 SUPPLY AND SERVICES August 20, 2009 Page 2 Tender No. T-20-2009 Tender for Supply & Delivery of Two (2) One- Ton Dump Trucks 231 . 2. TENDER AMOUNT AND ESTIMATED PROJECT COSTING SUMMARY T-20-2009 $82,524.00 Air Conditioning Tax 200.00 Sub Total 82,724.00 GST 4,136.20 PST 6,617,92 Sub-Total 93,478.12 GST Rebate (4,136.20) Total .$89,341.92 Total Cost Per Unit $44,670.96 Project Cost under (over) approved funds by $30,658.08 i The Director, Corporate Services & Treasurer has reviewed the budgetary implications and the financing of the expenditures contained in this report and concurs. Sustainability Implications: The engine powering these vehicles meets the Environmental Protection Agency's latest standard for vehicle emissions. This will significantly reduce the amount of harmful emissions produced by the operation of these vehicles in the delivery of service to the City of Pickering. Background: The replacement of City Unit #030, a 1999 Ford F350 One-Ton Dump Truck and City Unit #720., a 1994 Ford F350 One-Ton Dump Truck was identified and approved by Council in the 2009 Capital Budget. Supply & Services invited seven (7) bidders to participate in the bidding process of which six (6) have submitted a tender for this project. Upon careful review of all tenders submitted, it is the recommendation of the Municipal Property & Engineering Division that the bid submitted by Colombo Motors LP in the amount of $93,478.12 (PST and GST included) be accepted. This report has been prepared in conjunction with the. Manager, Supply & Services who concurs with the foregoing. Attachments: 1. Supply & Services Memorandum dated July 23, 2009. August 20, 2009 Page 3 Tender No. T-20-2009 Tender for Supply & Delivery of Two (2) One- Ton Dump Trucks Prepared By: Approved/Endorsed By: 2 Everett-Buntsmbi Director r t Smith ~Sdpervisor, Fleet Operations Operations & Emergency Services oh Hannah )Richirrdd Holbor , Division Head erintendent, Municipal Operations pal Property & Engineering era A..Fq gemacher Gillis A. Paterson, Director C.P.P., CPPO, CPPB, C.P.M., CMM III Corporate Services & Treasurer Manager, Supply & Services RH:cr August 20, 2009 Page- 4 Tender No. T-20-2009 Tender for Supply & Delivery of Two (2) One- Ton Dump Trucks 233 Cry o~ DING MEMO' PICKS To: Richard Holborn July 23, 2009 Division Head, Municipal Property & Engineering From: Bob Kuzma Senior Purchasing Analyst Copy: Subject: Tender No. T-20-2009 - Tender for Supply and Delivery of Two (2) One Ton Trucks with Dump Body Closing: Wednesday, July 22, 2009 Tenders have been received for the above project. Seven (7) companies were invited to participate. An advertisement was placed on the City's Website. Six (6) bidders responded and submitted a tender for this project. A copy of the Record of Tenders Opened and Checked used at the public tender opening is attached. Tenders shall be irrevocable for 60 days after the official closing date and time. Purchasing Procedure No. PUR 010-001, Item 10.03 (r) provides checking tendered unit prices and extensions; unit prices shall govern and extensions will be corrected accordingly, which has been done. Copies of the tenders are attached for your review along with the summary of costs. Each line item provides a space for the bidder to indicate a "Yes, No, Specify" to provide the City with information and details to subjectively review each line item and the sum total of all specifications. Specifications Item # 5 states: Where a minimum is called for, the item shall meet or exceed the capacity, size or performance specified. a) A mark in the "yes" space shall mean compliance with the specification and can be further detailed in the SPECIFY space. b) A mark in the."no" space shall mean a deviation from the specification and must be further detailed in the SPECIFY space. Deviations will be evaluated and acceptance of these deviations is within the discretion of the City of Pickering Specifications Item # 6 states: 234 Specifications Items #41, #52, #53, #54, allows for a choice of approved equipment, the bidder must indicate the' equipment being bid for each specification in the "YES" space provided. SUMMARY GST/PST included Bidder Total Tendered Amount $ After Calculation Check $ Colombo Motors LP $93,478.12 $93,478.12 Maclver Dodge Ltd., $95,892.34 $95,892.34 Formula Ford Sales $101,935.04 $101,935.04 Donwa Ford Sales $102,127.14 $102,127.14 Durham Truck & Equipment $103,056.00 $103,056.00 Eloqui Ltd. $106,661.82 $106,687.82 Include the following items in your Report to Council: (a) without past work experience, if reference information is acceptable; (b) the appropriate account number(s) to which this work is to be charged; (c) the budget amount(s) assigned thereto; (d) Treasurer's confirmation of funding; (e) related departmental approvals; (f) any reason(s) why the low bid of Colombo Motors LP is not acceptable; and (g) related comments specific to the project. Note - CAO may approve an award of a tender during Recess of Council. Your report to CAO should be in memo format and include the same information as if reported to Council. I Please do not disclose any information to enquiries except you can direct them to the City's website for the unofficial bid results as read out at the Public tender opening. Bidders will be advised of the outcome in due course. If you require further information; please feel free to contact me or a member of Supply & Services. /bk Attachments July 23, 2009 Tender No. T-20-2009 Page 2 Tender for Supply and Delivery of Two.(2) One Ton Trucks with Dump Body 235 Q O U) F- Z XO Y. a Q a W Y Of Z' U t1i z z 0) (D (A U W o Q z o z O ni w Q _N N W O p Z U a O 03 0 -2 I CD W n~ O O ~n ~Y z w w 16 LL Q O ~ C rn d U O : C. W ° F m c z n O ` z N 6 p ` a> a> w J V . a fn ` ~ 06 Cl) (n 0 Y ` LO LL L L d E 0 :3 o w C. w 0 LL w d w LL. ' U 1 Calf o~ ...~~~CTa#-.~i-°f'O REPORT q,) 236 PICKERING MEMO To: Thomas J. Quinn August 20, 2009 Chief Administrative Officer' From: Everett Buntsma - Director, Operations & Emergency.$eMb"es A 2-6 Copy: (Acting) Chief Administrative Officer Director, Corporate Services & Treasurer Division Head, Municipal Property & Engineering-°~ Superintendent, Municipal Operations Supervisor, Engineering & Capital Works Subject: Tender No. T-21-2009 Tender for Reconstruction of Luna Court File: A-1440 Tenders have been received which closed on Wednesday, August 5, 2009 for the reconstruction of Luna Court. Fifteen companies were invited to participate, of which 6 bids were received. The following is a summary of the bids received. Recommendations: 1. That Tender T-21-2009 submitted by C. Valley Paving Limited in the amount of $103,077.98 (GST included) be accepted; 2. That the total gross project cost of $117,075 (GST included) including the tender amount and other associated costs and the total net project cost of $111,500, be approved; 3. That the Director, Corporate Services & Treasurer be authorized to finance the project as follows: a) the sum of $111,500 to be funded from Provincial grants approved in the 2008 Roads Capital Budget; 4. That the Director, Corporate Services & Treasurer be authorized to take any actions necessary in order to effect the foregoing; and 5. That the appropriate City of Pickering officials be authorized to take necessary 23 fiction to give effect hereto. Executive Summary: As part of the 2008 Roads Capital Budget Luna Court was approved as a construction project. Tender T-21-2009 was issued on Thursday, July 16, 2009 and closed on Wednesday, August 5, 2009 with six bidders responding. The total net project cost is estimated to be $111,500 to the City (net of GST rebate). The City's purchasing policy requires staff to Report to Council on results of the tender and financing in order to proceed with this project in a timely manner. The Chief Administrative Officer has the authority to accept this tender during summer recess of Council. .Financial Implications: 1 TENDER AMOUNT T-21-2009 $ 98,169.50 GST 4,908.48 Subtotal $103,077.98 GST Rebate (4,908.48) Total $ 98,169.50 2. APPROVED SOURCE OF FUNDS 2008 Roads Capital Budget Item Account Code Source of Funds Budget Required Luna Court 5320.0823.6250 Provincial T1 Grant $125,000 $111,500 FUNDS AVAILABLE $125,000 $111,500 RECEIVED CITY OF PICKERING AUG 2 7 2009 SUPPLY AND SERVICES August 20, 2009 Page 2 Tender No. T-21-2009 Tender for reconstruction of Luna Court 3. 2 3 8 ESTIMATED PROJECT COSTING SUMMARY T-21-2009 - Tender for Luna Court Reconstruction $98,170 Associated Costs Miscellaneous Costs 830 Materials Testing 2,500 Construction Contingency 10.000 Total 111,500 GST 5,575 Total Gross Project Cost 117,075 GST Rebate. (5,575) Total Net Project Cost $111,500 Project Cost under (over) approved funds by $13,500 The Director, Corporate Services & Treasurer has reviewed the budgetary implications and the financing of the expenditures contained in this report and concurs. Sustainability Implications: This project will reduce maintenance requirements and cost in the future. Backgro.und: As part of the 2008 Capital Budget, Luna Court was approved as a construction project. Tender T-21-2009 was issued on Thursday, July 16, 2009 and closed on Wednesday, August 5, 2009 with fifteen bidders obtaining tendering packages, and six companies submitting a bid. The low bid was received from C. Valley Paving Limited in the amount of $103,077.98 (GST included). The total gross project cost is estimated to be $117,075 for an estimated net cost to the City of $111,500 (net of GST rebate). References for C. Valley Limited have been checked and are deemed acceptable by the Supervisor, Engineering & Capital Works. The Health & Safety Policy, Confined Space Awareness Training and a list of employees trained, current WSIB Council Amendment to Draft #7 (CAD-7), Certificate of Clearance issued by Workplace Safety & Insurance Board and Certificate of Insurance as submitted by C. Valley Limited have been reviewed by the Coordinator, Health & Safety and are deemed acceptable. In conjunction with staff's check of references submitted on this project, the tender is deemed acceptable. August 20, 2009 Page 3 Tender No. T-21-2009 Tender for reconstruction of Luna Court Upon careful examination of all 'Lenders and relevant documents received, the Operations & Emergency Services Department, Municipal Property & Engineering Division recommends the acceptance of the low bid submitted by C. Valley Paving Limited for Tender T-21-2009 in the amount of $103,077.98 (GST included) and that the total net proj"pst of $111,500 be approved. This report has been prepared in conjunction with the Manager, Supply & Services who concurs with the foregoing. Attachments: 1. Location Map 2. Supply & Services Memorandum dated August 6, 2009 Prepared By: Approved/Endorsed By Darrell Selsky Everett Buntsma Cs- Supervisor Engineering & Capital Works Director, Operations & Emergency Services . -77-= Vera A. Felgemachor Rich rd Holbor ; Division Head C.P.P., CPPO, CPPB, C.P.NI., CMM III M icipal Property & Engineering Manager, Supply & Services "Gillis A. Paterson, Director Corporate Services & Treasurer RH:ds August 20, 2009 Page 4 Tender No. T-21-2009 Tender for reconstruction of Luna Court ICI, I 240 MUNICIPAL PROPERTY & ENGINEERING Attachment for Tender T-21-2009 LUNA COURT 09- 44/ 7 P p S N Y ~jCO `G ~SSV N J Z Z~ O O Q O O O ~~F O yL ~O tZ 2 7 SUBJEC O t~P \"~R > AREA O 0 P`N 0E 8O F PN~GE Z N FZG~PRO ROSH SN~N~ R 00 P~ m ~ O 0 N~ O > Z7 O O J~~vE O G v G~O~E ~~ti wry ZW 7 p GO F07~ 7 C~ O 7i N\GP G O pJE' 7 N Z~ ~'Q~ MS'S U op ROB \NG P R N p 7~ L~ FP ~NV~ Y~ 7 ~ 0 BEN ~ 7'\A L~PR P~ G K Z P ~ p ~ ~ Z RO PO S R~E'C ~ Z ` y~O R `P NV P~\E~ O O> O y0 G s PEE ~RE~ ti GE o~~E o FP\R~~1vE EFz90\N~ G003?'o EEC P`~ ~N P STR LOCATION MAP PROPOSED CONSTRUCTION INCLUDES: Road Reconstruction (new granular base, asphalt and curb/gutter) Repairs to the Existing Storm Sewer System. 0 Remove and Replace Sidewalk Bays as required. 9 Landscape Restoration (grading and sodding where required). 241 z W 0 V 7 N X O , Q Z Q Cz7 N Q 4 U) w - E k W U a w CD = o U ~ o C). ot N Q O U N Z.Q w of Y W Q a ° Go c' _ 0 U-W r1f, O w Q F= Z U a m 0 c a) LL \ U m a~ o cn :2 w N N ' F° O Z N v a~ JO ..J - _..._...._S~ Z - _ c S~V1. N y c U o j 07 J m m O d cu z~ o c U m W to m m U 0 m cr- U LL L 242 PICKERING MEMO To: Richard Holborn August 6, 2009 Division Head, Municipal Property & Engineering From: Vera A. Felgemacher Manager, Supply & Services Copy: Coordinator, Infrastructure Maintenance Contracts Subject: Tender No. T-21-2009 Tender for Luna Court Reconstruction Closing: August 5, 2009 Six (6) Tenders have been received for the above project. Fifteen (15) companies were invited to participate of which six (6) bidders responded and submitted a tender for this project. An advertisement was placed in the Daily Commercial News and on the City's Website. A copy of the Record of Tenders Opened and Checked used at the public tender opening is attached. Tenders shall be irrevocable for 60 days after the official closing date and time. Purchasing Procedure No. PUR 010-001, Item 10.03 (r) provides checking, tendered unit prices and extensions; unit prices shall.govern and extensions will be corrected accordingly, which has been done. All deposits other than the low three bidders may be returned to the applicable bidders as provided for by Purchasing Procedure No..PUR 010-001, Item 10.03(w). Three bids have been retained for review at this time. A copy. of bids received is attached for review. SUMMARY PST & GST included Bidder Total Tendered Amount $ After Calculation Check $ C. Valley Paving Ltd. $103,077.98 $103,077.98 Dig-Con International Limited. $105,082.48 $105,082.48 Bennington Construction Ltd. $110,115.60 $110,115.60 Coco Paving Inc. $132,850.73 $132,850.73 Royalcrest Paving & Contracting Ltd. $153,453.51 $153,453.51 Bar-Quip Construction Limited $173,439.00 $173,439.00 - I Pursuant to information to Bidders item 20, the following 1~ be requestec of the low bidder for your review during the evaluation stage of this tender call. Please advise when you wish us to proceed with this task. 243 (a) a copy of the current and dated Health and Safety Policy to be used on this project; (b) a copy of the current Workplace Injury Summary Report issued by Workplace Safety & Insurance Board (in lieu of the Workplace Injury Summary Report document, a copy of the current CAD 7, NEER, or MAP reports may be submitted); (c) a copy of the current Clearance Certificate issued by Workplace Safety & Insurance Board; (d) Proof of compliance with amended Confined Space Entry Regulations (September 30, 2006). (e) a list of employees trained in the confined space entry procedure who will be working on this project (f) the City's certificate of insurance or approved alternate shall be completed by the bidder's agent, broker or insurer; Include the following items in your Report to Council: (a) if items (a) through (d) noted above, are acceptable to the Co-ordinator, Health & Safety .(b) any past work experience C. Valley Paving Ltd. including work location; (c) without past work experience, if reference information is acceptable; (d) the appropriate account number(s) to which this work is to be charged; (e) the budget amount(s) assigned thereto; (f) .Treasurer's confirmation of funding; (g) related departmental approvals; (h) any reason(s) why the low bid of C. Valley Paving Ltd. is not acceptable; and (i) related comments specific to the project. Note - CAO may approve an award of a tender during Recess of Council. Your report to CAO should be in memo format and include the same information as if reported to Council. Please do not disclose any information to enquiries except you can direct them to the City's website for the unofficial bid results as read out at the Public tender opening. Bidders will be advised of the outcome in due course. If you require further information, please feel free to contact me or a member of Supply & Services. /jh Attachments Tender No. T-21-2009 Tender for Luna Court Reconstruction Page .2. RE -)-09 PORT #22LS/' ADMINISTRATION DEPARTMENT d 4 CLERK'S DIVISION MEMORANDUMMAY L 2002 May 27, 2002 TO: Tom Quinn, Chief Administrative Officer Gil Paterson, Director, Corporate Services & Treasurer FROM: Bruce Taylor, Clerk SUBJECT: Referrals from Council Meeting of May 21, 2002 Please be advised that the Council of.the City of Pickering passed Resolution #80/02, Item #4, at the Council Meeting of May 21, 2002, as follows: 1. That Report to Council CAD 0402 seeking authorization by the Chief Administrative Officer to act in Council's approval capacity on behalf of Council during any recess, break or absence of City Council be received; and 2. That subject to the Council approved Purchasing Policy & Procedure, the Chief Administrative Officer be authorized to act 'in Council's approval capacity on behalf of Council during any recess, break or absence of City Council on the condition that: a) such actions are in compliance with the Purchasing Policy & Procedure as approved under Resolution 136/01; and b) the costs thereof are within the budget previously approved by Council; and c) a report respecting those approvals is subsequently submitted to Council. 3: That appropriate officials of the City of Pickering be authorized to give effect thereto. Bruce Taylor BT:dk Copy: T.J. Quinn, Chief Administrative Officer INTER-DEPARTMENTAL MEMORANDUM 245 CLERK' S DIVISION RECEIVED DATE: June 6, 2000 CITY OF PICKBlFiPNC JUNQ0&0 CORPORATE SERVICES TO: G. Paterson Director, Corporate Services & Treasurer FROM: ` Bruce Taylor City Clerk Please be advised that the Council of the City. of Pickering passed Resolution 85/00, Item #1 at the Council Meeting of June 5, 2000, as follows: "That Report to Council CS 12-00 regarding authority for the Director, Corporate Services, & °Treasurer to recommend project financing approval during recesses of Council be received, and 1. The Director, Corporate Services & Treasurer be authorized to recommend and approve project financing to the Mayor and Chief Administrative Officer for projects contained in the annual capital budget. or 'current budget, during recesses of City Council; and 2. That appropriate officials of the, City, of Pickering be authorized to give effect thereto. This resolution is sent to you for your information. Bruce Taylor, City Clerk cc. T.J. Quinn, Chief Administrative Officer