HomeMy WebLinkAboutMay 8, 2017
Executive Committee Agenda
Monday, May 8, 2017
Council Chambers
2:00 pm
Chair: Councillor Butt
For information related to accessibility requirements please contact: Linda Roberts
905.420.4660 extension 2928
lroberts@pickering.ca
Anything highlighted denotes an attachment or link. By clicking
the links on the agenda page, you can jump directly to that
section of the agenda. To manoeuver back to the agenda page use the Ctrl + Home keys simultaneously, or use the “bookmark”
icon to the left of your screen to navigate from one report to the
next.
-C4Jof-
PlCKERlNG
Executive Committee
Meeting Agenda
Monday, May 8, 2017
Council Chambers-2:00 pm
Chair: Councillor Butt
(I) Disclosure of Interest Pages
(II) Delegations
(Ill) Matters for Consideration
Consultant/Staff Delegation
1.
2.
Brian Kelly, Manager of Sustainability
Region of Durham
Director, City Development & CBO, Report PLN 06-17
City of Pickering
Durham Community Climate Adaptation Plan
Recommendation
1-8
1. That Council approves the Durham Community Climate Adaptation Plan in
principle;
2. That Council authorizes staff to participate in the Working Groups being
established by the Region of Durham to develop the 18 proposed Programs
as part of Phase 3: Program Approval and Funding;
3. That Council authorizes staff to participate in the development of a
Reporting Framework for joint tracking of the Programs in the Durham
Community Climate Adaptation Plan; and
4. That the City Clerk forward a copy of Report PLN 06-17 to the Region of
Durham.
Director, Community Services, Report CS 08-17
Tender for Pickering Civic Complex Roof Repairs
-Tender No. T-10-2017
9-19
For information related to accessibility requirements please contact:
Linda Roberts
905.420.4660 extension 2928
lroberts@pickering.ca
-C:f;jof-
PlCKERJNG
Executive Committee
Meeting Agenda
Monday, May 8, 2017
Council Chambers -2:00 pm
Chair: Councillor Butt
1. That Report FIN 07-17 of the Director, Finance & Treasurer be approved;
and:
a) That Council authorize a transfer of $80,173 to the Building Permit
Stabilization Reserve Fund (Account #7506); and
b) That Council authorize a transfer of $80,173 from the Building
Permit Stabilization Reserve Fund to the Rate Stabilization Reserve
(Account #7021 ).
2. That the appropriate City of Pickering officials be authorized to take the
necessary actions as indicated in this report.
4. Director, Finance & Treasurer, Report FIN 08-17 23-30
2017 Tax Rates and Final Tax Due Dates for all Realty Tax Classes,
Except for Commercial, Industrial and Multi-Residential Realty Classes
Recommendation
1. That Report FIN 08-17 of the Director, Finance & Treasurer regarding the
2017 tax rates be received;
2. That the 2017 tax rates for the City of Pickering be approved as contained
in Schedule A of the By-law attached hereto;
3. That the tax levy due dates for the Final Billing be June 28, 2017 and
September 28, 2017 excluding the industrial, multi-residential and
commercial realty tax classes;
4. That for the year 2017, the City shall levy upon designated Universities and
Colleges an annual tax at the prescribed amount for each full-time student
enrolled in the University or College, as determined by the Minister of
Training, Colleges and Universities, payable on or after July 1st ;
5. That the attached By-law be approved;
6. That the Director, Finance & Treasurer be authorized to make any
changes or undertake any actions necessary to comply with Provincial
regulations including altering due dates or final tax rates to ensure that the
property tax billing process is completed; and,
7. That the appropriate City of Pickering officials be authorized to take the
necessary actions to give effect thereto.
-Clp;;f--
Pl(KERlNG
Executive Committee
Meeting Agenda
Monday, May 8, 2017
Council Chambers-2:00 pm
Chair: Councillor Butt
5. . Director, Finance & Treasurer, Report Fl N 09-17 31-33
6.
Section 357/358 of the Municipal Act-Adjustment to Taxes
Recommendation
1. That the write-off of taxes as provided for in Attachment 1, in accordance
with Sections 357/358 of the Municipal Act, 2001 be approved; and
2. That the appropriate officials of the City of Pickering be authorized to take
the necessary actions as indicated in this report.
Director, Finance & Treasurer, Report FIN 10-17
Commodity Price Hedging Agreements Report
Recommendation
34-37
It is recommended that Report FIN 10-17 from the Director, Finance & Treasurer
regarding commodity price hedging agreements be received for information.
(IV) Other Business
(V) Adjournment
2
PLN 06-17 May 8, 2017
Subject: Durham Community Climate Adaptation Plan Page 2
Financial Implications:
No financial implications at this time. However, it is anticipated that programs proposed
for Durham's municipalities will have costs associated with them. Staff will advocate that
any future senior government funding be shared between the lower tier municipalities and
the Region.
Background: In October 2013, the Durham Region Roundtable on Climate
Change (DRRCC) began working on a development of the Climate Adaptation Plan,
as a complementary initiative to the Community Climate Change Local Action Plan,
approved by DRRCC in September 2012, which focuses on climate mitigation. The
DRRCC struck a Climate Adaptation Subcommittee to oversee this process, and on
October 11,2013 it approved a strategy and work plan developed by the Subcommittee.
The process includes four phases, which will take four years to complete pending
implementation. The four phases are:
Phase Year Program
1 2014 Assessment
2 2015/16 Program Design
3 2017 Program Approval and Funding
4 2018 Program Implementation
Phase 1: Assessment consisted of:
• Projecting future climate parameters in Durham Region for the period 2040
to 2049 (the SENES study)
• Engaging stakeholders through briefings on the results of the SENES study
• Creating seven Expert Task Forces to assess the impacts of the future climate
parameters and identify those impacts that pose medium and high risks to the
Durham community
This work resulted in a Progress Report, which was endorsed by Regional Council on
January 21, 2015 and included authorization to move forward with Phase 2 of
preparing a Plan.
PLN 06-17 May 8, 2017
Subject: Durham Community Climate Adaptation Plan Page 3
Phase 2: Program Design consisted of reconvening the Expert Task Forces to
develop programs to address all of the medium and high risks identified in Phase 1
through the following steps:
• Assembling an inventory of applicable actions
• Classifying actions by implementation tools
• Packaging measures into proposed programs
• Participating in a design charrette
• Producing an integrated plan
The Phase 2 work resulted in a proposed Climate Adaptation Plan, which was
approved in principle by Regional Council at the meeting on December 14, 2016. The
City received a letter dated February 21, 2017 from the Region of Durham, (see
Attachment #1) requesting the City to:
• Approve in principle the Climate Adaptation Plan
Participate in working groups to further develop proposed Programs
• Work to develop a Reporting Framework for joint tracking of progress
A copy of the Plan was provided to Council and Directors in advance of this Report.
The Region has received recognition for its leadership on climate adaptation planning
from the Minister of the Environment and Climate Change and the Intact Centre for
Climate Adaptation at the University of Waterloo.
Discussion:
a) Durham's Climate Adaptation Plan
This Plan addresses the risks posed from a changing climate on infrastructure, heath,
welfare, and economy within Durham Region. The impacts of these changes in weather
patterns are already being felt locally and globally. Prolonged heat waves, torrential
rainstorms, windstorms, and droughts are increasing throughout Ontario. The Programs
proposed will proactively address climate change to ensure Durham remains a liveable,
resilient, and prosperous community.
The Plan supports many of the indicators outlined in the City's Measuring Sustainability
Report. In addition, the Plan provides the foundation for Pickering to develop its own
climate adaptation vision in the near future. It is recommended that Council approve, in
principle, the Durham Community Climate Adaptation Plan.
b) Staff Engagement
The Plan identifies 18 Programs across 7 sectors that are to be implemented by various
levels of government and agencies across Durham. Collectively, these programs will
increase the resilience of our community to the changing climate and help protect the
City's infrastructure, service, and citizens (see Program Responsibilities, Attachment #2).
3
6
are numerous, complex and interrelated. Moreover, they fall into
the jurisdictions of several levels of government and the mandates
of various agencies. The Programs will also be challenging to
implement in terms of their respective timeframes and costs. They
will test our resolve for the future, our institutional attention spans,
our business planning processes, and our creativity to find the
necessary funding.
In particular, I want to draw your attention to Table 2 on pages 73
and 7 4 which summarizes the roles and responsibilities (both
legislated and voluntary) for the various levels of government and
relevant agencies in the implementation of this Plan.
At this time we are requesting our municipal partners to:
1. Take this Plan to your Council for approval in principle.
This community plan will have more credibility across Durham
and with senior levels of government if it is officially endorsed
by both levels of government in Durham. Therefore as a first
step, we are requesting that you take this Plan to your Council
as soon as possible for approval in principle. Approval in
principle does not require or imply approval of funding at this
time; rather it commits us and you to further develop Program
concepts and then consider them in future business planning
processes. Please let us know if Regional staff can assist you
in presenting this Plan to your Council.
2. Participate in working groups to further develop
proposed Programs.
As a next step, we are planning to structure six or seven
working groups among the responsible agencies. These
working groups will further develop the 18 Programs to the
point where those agencies with responsibility can make
informed decisions within their risk management policies and
business planning processes on Program implementation.
Thus, your participation is critical. We are pleased to report
that Regional Council recently approved $100,000 in "seed
funding" for the next steps which will be used to support this
Program development.
3. Work with us to develop a Reporting Framework for joint
tracking of progress.
Page 2 of 3
We are requesting you to collaborate with us to design a
Reporting Framework by June 30, 2017. The objective is to
create an efficient process that will enable all responsible
agencies to easily report their progress in developing,
approving and implementing the Programs in this Plan. The
Region would compile and publish the annual progress report
on behalf of all participating agencies. This process should
also support a revision of the Plan every five years.
The Regional Municipality of Durham is committed to pursuing the
roles and responsibilities that fall within our mandates and
jurisdiction and will maintain open communication with our partners.
In closing, I would like to once again thank you and underscore the
importance of climate adaptation action to our community. As
recent events have vividly illustrated, climate change is now a
reality we cannot ignore. The critical work ahead will be a test of
our collective resolve as a community to protect and improve our
infrastructure and our quality of life.
Yours truly,
Roger Anderson,
Regional Chair and CEO
Enclosure
Page 3 of 3
7
Report CS 08-17 May 8, 2017
Subject: Tender for Pickering Civic Complex Roof Repairs Page 3
Discussion: Project specifications were developed based on the findings and
recommendations of periodic roofing inspections and condition audits performed by
Garland Canada Inc. The existing ballasted roof and insulation will be removed,
leaving the existing waterproofing layer to become a vapour barrier for the new roof
assembly. Localized repairs of the waterproofing layer will be completed as required.
The new roof assembly will include a minimum 3" polyisocyanurate insulation with a W'
high-density asphalt-coated fibreboard layer, SBS rubber modified bitumen membrane
and one-ply high performance mineral surface. The work includes replacement of metal
parapet flashing and associated membranes and accessories required for a complete
roof system over the City Hall portion of the Pickering Civic Complex.
An existing wooden roofdeck walkway connecting the narrow flat roof around the dome
of the council chamber was recently deemed unsafe and removed as a health and
safety hazard and will be replaced with a galvanized metal roofdeck walkway
conforming to current safety standards. An allowance of up to $20,000.00 has been
included to complete this work, including any required design consulting fees.
Bids have been received to the tendering call, which closed on Wednesday, April 12,
2017 for the Pickering Civic Complex Roof Repairs. A mandatory site visit was held on
Wednesday, March 29, 2017 and seventeen bidders attended, of which fourteen
bidders submitted a tender for this project, eleven of which were compliant.
The low bidder, Foran's Roofing and & Sheetmetal Limited, h~s submitted a signed copy
of the City's Health & Safety Regulation form, the current WSIB Clearance Certificate,
and confirmation that staff working on the project are certified in Working at Heights
training and all are acceptable to the Coordinator, Human Resources. The bidder's
Certificate of Insurance is deemed acceptable to Manager, Budgets & Internal Audit. In
conjunction with the foregoing approvals, staff have reviewed the previous work
experience of Foran's Roofing and & Sheetmetal Limited, the references provided and
the bonding available on this project and the bid is deemed acceptable.
Upon careful examination of all tenders and relevant documents received, the
Community Services Department recommends the acceptance of the low bid submitted
by Foran's Roofing and & Sheetmetal Limited for Tender No. T-1 0-2017 in the amount
of $499,460.00 (HST included) and that the total net project cost of $521,011.00 be
approved.
Attachments:
1 . Supply & Services Membrand urn dated April 19, 2017
2. Being a by-law to authorize the Pickering Civic Complex Roof Repairs project and
the issuance of debentures in the amount of $520,000.00.
11
en
1 'i
City of Pickering
Record of Tenders Opened and Checked
Tender Description: Pickering Civic Complex Roof Repairs
Tender No.: T-10-2017
Date:
.Time:
Wednesday, April12, 2017
Approx. 2:15pm Local Time ALL AtT:tJ...J/:::>E:b J.1 A t\1 t>.A-Tb J<:Y s rT£" VIS 1 I
Bid Agreement Addendum #1 Addendum #2
Deposit to Acknowledged Acknowledged Total Tendered Amount Bidder Sign In
Bidder Name Bond
AMA Roofing & /fo(o -/ /~ /~ $ 5351 5f?, }£-0 Sheet Metal
Applewood Roofing ~e(o / / / $ 5611 JOJ1,oo & Sheet Metal v'
Aseal Roofing & X )(_ $
Sheet Metal
. --~.S::--~ Atlas-Apex Roofing ;/{o /~ /' $ 5oS. a too,;;? / / ~ Services Inc. I . . ~
Cordeiro Roofing X r/"'"" ~ ~ $ Ltd.
Crawford Roofing r/ to?o / / /' $ 5"'-;c, d-lfJ" ~0 Corp. I
Eileen Roofing Inc. V'"ro~ / / / $ 0~; (:,/!./. 00 c_;:;;fl_-> <:7. ~---· ~:::::;...-;
. Foran's Roofing & t/' ro(o / / ~ $ t..;9?, (/0-o, oo Sheetmetal Ltd.
Industrial Roofing · ~rv?a v-/ ~ $ & I 0 I b ;2 f. 75 Services Ltd.
Nortex Roofing Ltd. I __ >< y:_ $
-----------------
Comments
-
" ' -.,
.,_
';<E#crriJ .
' I
-(U[" \f.'E c~
. -
;<G.:f€Cff:0
-'-----------------
18
The Corporation of the City of Pickering
By-law No.
Being a by-law to authorize the Civic Complex
Roof Replacement project in the City of
Pickering and the issuance of debentures in
the amount of $520,000.00.
Whe;reas Section 11 ofthe Municipal Act, 2001, as amended, provides that a lower-tier
municipality may pass by-laws respecting matters within the spheres of jurisdiction
described in thafSection; and,
Whereas Subsection 401 (1) of the Municipal Act, 2001, as amended, provides that a
municipality may incur a debt fbr municipal purposes, whether by borrowing money or in
any other way; and,
Whereas. Subsection 401 (3) of the Municipal Act, 2001, as amended, provides that a
lower-tier municipality in a regional municipality does not have the power to issue
debentures; and,
Whereas The Regional Municipality of Durham has the sole authority to issue
debentures for the purposes of its lower-tier municipalities including The Corporation of
the City of Pickering (the "City"); and,
Whereas the Council of the City wishes to proceed with debenture financing for the
Civic Complex Roof Replacement project; and
Whereas before authorizing the construction in respect of the Civic Complex Roof
Replacement project, the Council of the City had the Treasurer update the City's Annual
Repayment Limit, the Treasurer calculated the estimated annual amount payable in
respect of such project and determined that such annual amount would not cause the
City to exceed the updated limit and therefore, Ontario Municipal Board approval is not
required as per Section 401 of the Municipal Act, 2001, as amended, and the
regulations made thereunder;
And whereas after determining that Ontario Municipal Board approval is not required,
the Council of the City approved report CS 08-17 on the date hereof and awarded
Tender No. T-1 0-2017 for the Civic Complex Roof Replacement project;
BY-LAW NO Page 2
Now therefore the Council of The Corporation of the City of Pickering hereby enacts as
follows:
1. That the City proceed with the project referred to as "Civic Complex Roof
Replacement";
2. That the estimated costs of the project in the amount of $521,011.00 be financed as
follows:
a) That the sum of $520,000.00 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed ten years;
b) That the sum of $1,011.00 be funded from property taxes;
3. That the funds to repay the principal and interest of the debentures be provided for
in the annual Current Budget for the City commencing in 2017 or such subsequent
year in which the debentures are issued and continuing thereafter until the
debenture financing is repaid.
By-law passed this 16th day of May, 2017
David Ryan, Mayor
Debbie Shields, City Clerk
19
20
-C~
PlCKERlNG
From: Stan Karwowski
Director, Finance & Treasurer
Report to
Executive Committee
Report Number: FIN 07-17
Date: May 8, 2017
Subject: 2016 Building Permit Stabilization Reserve Fund
Recommendation:
1. That Report FIN 07-17 of the Director, Finance & Treasurer be approved; and:
a) That Council authorize a transfer of $80,173 to the Building Permit Stabilization
Reserve Fund (Account #7506); and
b) That Council authorize a transfer of $80,173 from the Building Permit
Stabilization Reserve Fund to the Rate Stabilization Reserve (Account #7021).
That the appropriate City of Pickering officials be authorized to take the necessary
actions as indicated in this report.
Executive Summary: Section 7(4) of the Building Code Act (the "Act") requires the
City to prepare an annual report of building permit and inspection fees and related
administrative and enforcement costs. This report fulfills the requirements of Section
7(4) of the Act. This report also contains information about the City's Building Permit
Stabilization Reserve Fund.
Financial Implications: This report contains information pertaining to the financial
status of the Building Permit Stabilization Reserve Fund as at December 31, 2016.
Discussion: In December 2005, Council approved report PD 41-05, which enacted
a new building permit process and fees under the Act. The Act requires permit fees to
be accounted for, and not used to subsidize City functions other than administration and
enforcement of the Act and the Ontario Building Code. Watson & Associates
Economists Ltd. was retained to undertake a comprehensive analysis of all Planning &
Development service costs, fees and legislative requirements and to develop an Activity
Based Costing (ABC) model for the City. Using this information, Watson recommended
a small increase in building permit fees to provide for cost recovery and establishment
of a building permit stabilization reserve fund. The purpose of this reserve fund is to
provide a source of funds for current operating budget costs during an economic
FIN 07-17 May 8, 2017
Subject: 2016 Building Permit Stabilization Reserve Fund Page 2
downturn to offset lower building permit revenues. Without such a reserve fund,
reduced growth and permit volumes during a downturn could result in severe budgetary
pressures which could impair the City's ability to enforce the Act and the Building Code.
The Act requires that an annual report be prepared that includes total fees collected in
the previous 12 month period and a summary of directly and indirectly related
administrative costs.
Due to the relatively low rate of development since the fund was established in 2006,
the accumulated shortfall for this reserve fund as of December 31, 2015 was $4.77
million. However, due to an excess of revenues over costs in 2016, the accumulated
shortfall can be reduced by the excess of revenues in the amount of $80,173,
translating into a revised accumulated deficit figure of $3.968 million.
Annual Report-Building Permit Fees
for the year ended December 31, 2016
Building Permit Revenue
Costs:
Direct Costs $ (1 ,896,652)
Indirect Costs (327,331)
Excess (Shortfall) Revenue Over Costs
$2,304,156
(2,223,983)
$ 80,173
Building Permit Stabilization Reserve Fund
Opening Balance, January 1, 2016
2016 Contribution
Transfer to the Rate Stabilization Reserve
Closing Balance, December 31, 2016
$
80,173
(80, 173)
Transfer to the Rate Stabilization Reserve-Recommendation 1b)
For the majority of municipalities, their Building Permit revenues are sufficient to cover
their direct and indirect operating costs. In addition, many of the municipalities have
excess funds that are transferred to their Building Permit Reserve Fund and these funds
will be used to cover any future operating shortfall in their Building Services section. As
stated above -Pickering has experienced a low level of construction activity that
translated into lower building permit revenues. For most municipalities, the budgeted
and actual cost of their building services section and or department is fully funded from
building permit revenues. The Building Services section for Pickering required a
financial subsidy from the taxpayer to fund their operations. Starting in 2006 and up to
December 2015, this financial subsidy was $4.77 million. From a financial perspective,
this subsidy was funded from the Rate Stabilization Reserve. The financing strategy is
to reduce this deficit!( subsidy) over time by transferring the Building Services operating
surplus to the Rate Stabilization Reserve. Recommendation 1 b) transfers the 2016
surplus funds to the rate stabilization reserve and reduces the deficit.
21
24
FIN 08-17 May 8, 2017
Subject: 2017 Tax Rates and Final Tax Due Dates for all Realty Tax Classes, Page 2
Except for Commercial, Industrial and Multi-Residential Realty Classes
Financial Implications: Adoption of the Recommendations and enacting the By-law
will allow the City to bill the Final 2017 levy for all properties except for the industrial,
commercial and multi-residential tax classes, which will be dealt with later this year.
Passing of the By-law will assist the City of Pickering in meeting its financial obligations
and reducing any borrowing costs. This levy also raises taxes for the Region of Durham
and the School Boards.
Discussion:
components:
The 2017 final tax billing process will consist of two separate
1. Residential and residential-related (farm, managed forest) properties; and,
2. Commercial, industrial and multi-residential realty classes.
Later this year, a report will be presented to Council asking for Council's approval to bill
the non-residential tax classes. The non-residential tax classes are subject to tax
capping and Pickering's staff, in conjunction with the other lower tier municipal tax staff
and the Region's finance staff, will be working on the tax capping calculations during the
next few months.
City's Net Tax Levy and Tax Rate Increase
The City's 2017 budget provided for an average property tax increase of 2.69% and was
adopted by Council through Finance Department Report FIN 04-17. The 2017 Council
approved budget levy of $60,120,868 plus assessment growth of $850,000 translates
into a total property tax levy of $60,970,868. The Region's tax increase for Pickering is
1.8% and the School Board increase is zero, resulting in a total average residential
increase of approximately 1.8%.
The property tax rates are calculated based on the budgets of both Pickering and
Durham Region. The tax rate itself is defined under section 306 of the Municipal Act and
it is to be calculated to eight decimal points. From 1998 to and including 2016 (19
years), Pickering has had the lowest residential property tax rates in Durham Region.
Tax Due Date Instalments
Recommendation 3 sets the due dates for the payment of residential taxes at June 28,
2017 and September 28, 2017. For your reference, the table below lists the tax
instalment due dates for the last three years.
FIN 08-17 May 8, 2017
Subject: 2017 Tax Rates and Final Tax Due Dates for all Realty Tax Classes, Page 3
Except for Commercial, Industrial and Multi-Residential Realty Classes
Year 1st Instalment 2nd Instalment
2017 June 28, 2017 September 28, 2017
2016 June 28, 2016 September 28, 2016
2015 June 25, 2015 September 25, 2015
2014 June 26, 2014 September 26, 2014
Communication Strategy
In addition to mailing the tax bills, the City will advertise the tax instalment due dates on
the City's webpage, the Pickering News Advertiser and any other communication
channels deemed appropriate by the Director, Finance & Treasurer, prior to each tax due
date.
Other
Recommendations 2 and 3 provide for the levying of all tax rates on all classes of
property, except for the non-residential properties. For non-residential properties, the tax
rates will be set and the property taxes will be billed at a later date because the "claw
back" percentages have not yet been determined. Staff will bring a separate report to
Council for the non-residential billing in June. Staff's preliminary estimate for the final
non-residential tax due date is September 28, 2017.
Recommendation 4 provides for the levying of an annual tax for institutions designated
under section 323 of the Municipal Act. In the fall of 2013, the Ministry of Training,
Colleges & Universities implemented a new enrolment system for colleges which resulted
in the Durham College of Applied Arts and Technology being reported under the City of
Pickering. Each year the Ministry of Municipal Affairs and Housing provides a listing of
institutions and their respective capacity figures as of December 31st of the prior year.
The Minister of Training, Colleges and Universities prescribes the amount to be levied for
each full-time student enrolled in the college. The institution is billed directly, and levies
are payable on or after July 1st each year. It is estimated that the gross billing under
recommendation 4 is approximately $9,750.
Changes to the Billing Schedule
Recommendation 5 will allow the Director, Finance & Treasurer some latitude, limited by
Provincial legislation, in effecting whatever changes may be necessary in order to ensure
that the taxes are billed properly and in a timely fashion. Recommendation 5 will be
used only if required to meet Provincial legislative requirements, such as the
requirements in subsection 343(1) of the Municipal Act that property owners must have
at least twenty-one days notice to pay their taxes. A further report to Council will be
prepared if there is any substantial change proposed to the billing of the final taxes.
25
The Corporation of the City of Pickerin§:TTACHMENT#..J.._ TO REPORT#·f'·~.D'-1.
By-law No.
Being a by-law to adopt the estimates of all sums required to be
raised by taxation for the year 2017 and to establish the Tax Rates
necessary to raise such sums and establish the final due dates for
the residential, pipeline, farm and managed forest realty tax
classes.
Whereas it is necessary for the Council of The Corporation of the City of Pickering,
pursuant to the Municipal Act, 2001, S.O. 2001, c25, as amended, to pass a By-law to
levy a separate tax rate on the assessment in each property class; and,
Whereas the property classes have been prescribed by the Minister of Finance under the
Assessment Act, R.S.O. 1990, ch.A.31, as amended and its Regulations; and,
Whereas it is necessary for the Council of The Corporation of the City of Pickering,
pursuant to the Municipal Act, to levy on the whole ratable property according to the last
revised assessment roll for The Corporation of the City of Pickering the sums set forth for
various purposes in Schedule "A", for the current year; and,
Whereas the Regional Municipality of Durham has passed By-law No. 06-2017 to
establish tax ratios, By-law 08-2017 to adopt estimates of all sums required by The
Regional Municipality of Durham for the Durham Region Transit Commission, By-law 09-
2017 to set and levy rates of taxation for Regional Solid Waste Management, and By-law
No. 07-2017 to set and levy rates of taxation for Regional General Purposes and set tax
rates on Area Municipalities; and,
Whereas the Province of Ontario has provided the 2017 education tax rates for the realty
classes; and,
Whereas sub section 342(2) of the Municipal Act, 2001, S.O. 2001, c25, as amended,
permits the issuance of separate tax bills for separate classes of real property for 2017;
and,
Whereas an interim levy was made by the Council of The Corporation of the City of
Pickering (pursuant to By-law No. 7536/17 before the adoption of the estimates for the
current year);
Now therefore the Council of the Corporation of the City of Pickering hereby enacts as
follows:
1. For the year 2017, The Corporation of the City of Pickering (the "City") on April 11,
2017, approved Council Report FIN 08-17 and corresponding schedules and
attachments as presented, resulting in a taxation levy of $60,970,868.
27
28
By-law No. Page 2
2. For the year 2017, the City shall levy upon the Property Classes set out in
Schedule "A", the rates of taxation as set out in Schedule "A", for the City of
Pickering, the Region of Durham and for Education purposes on the current value
assessment as also set out in Schedule "A". Where applicable, taxes shall be
adjusted in accordance with Bill140, as amended and its Regulations.
3. The levy provided for in Schedule "A" shall be reduced by the amount of the
interim levy for 2017.
4. The Tax Levy due dates for the Final Billing be June 28, 2017 and September 28,
2017 for all classes excluding the non-residential tax classes (commercial,
industrial and multi-residential).
5. The Treasurer is hearby authorized to accept twelve monthly electronic payments
commencing January 1st and ending December 1st inclusive. Failure by the
taxpayer to pay any one monthly part payment, will invoke the late payment
charges as outlined in the Municipal Act and confirmed by the City through By-law
every year.
6. The Treasurer is hearby authorized to accept twelve monthly electronic payments
commencing January 8th and ending December 8th inclusive. Failure by the
taxpayer to pay any one monthly part payment, will invoke the late payment
charges as outlined in the Municipal Act and confirmed by the City through By-law
every year.
7. The Treasurer is hearby authorized to accept twelve monthly electronic payments
commencing January 16th and ending December 16th inclusive. Failure by the
taxpayer to pay any one monthly part payment, will invoke the late payment
charges as outlined in the Municipal Act and confirmed by the City through By-law
every year.
8. For the year 2017, the City shall levy upon designated Universities and Colleges
an annual tax at the prescribed amount for each full-time student enrolled in the
university or college, as determined by the Minister of Training, Colleges, and
Universities, payable on or after July 1st in accordance with section 343 of the
Municipal Act.
9. If any section or portion of this By-law or of Schedule "A" is found by a court of
competent jurisdiction to be invalid, it is the intent of Council for The Corporation
of the City of Pickering that all remaining sections and portions of this By-law and
of Schedules "A" continue in force and effect.
10. This By-law comes into force on the date it is passed.
By-law No. Page 3
By-law passed this 15th day of May 2017.
David Ryan, Mayor
Debbie Shields, City Clerk
29
w 0
2017 Taxation Levy I 60,970,i68]
RTC
Property Class -Taxable
RT Residential
RD Residentiai-Educ only (Legion)
FT Farm
TT Managed Forest
PT Pipelines
MT Multi-Residential
CT Commercial
CU Commercial -Excess Land
CX Commercial Vacant Land
XT Commercial (New Construction) Full
XU Commercial (New Construction) Exc Land
XX Commercial (New Construction) Vacant
ST Shopping Centres
SU Shopping Centres Excess Land
ZT Shopping Centre (New Construction)
ZU Shopping Ctr Exc Land (New Construction)
DT Office Building
YT Office Building (New Construction)
IT Industrial
JT Industrial (New Construction)
IU Industrial Excess Land
IX Industrial Vacant Land
JU Industrial Excess Land (New Construction)
L T Large Industrial
LU Large Industrial -Excess Land
2017 City
CVA Tax Rate
12,685,7 49,443
614,000
150,816,440
3,947,475
28,102,000
114,582,800
864,003,660
8,447,087
45,389,500
46,697,246
1,906,853
0
590,400,131
135,500
34,717,190
85,150
87,768,821
0
142,369,878
9,491 ,85'1
1,732,677
13,489,475
1,986,700
51,522,500
1,615,400
0.00364108
0.00364108
0.00000000
0.00072822
0.00091027
0.00447634
0.00679607
0.00527956
0.00369569
0.00369569
0.00527956
0.00369569
0.00369569
0.00527956
0.00369569
0.00527956
0.00369569
0.00527956
0.00527956
0.00822810
0.00822810
0.00534827
0.00534827
0.00534827
0.00822810
0.00534827
Schedule A-2017 Calculated Tax Rates
Region
Tax Rate
0.00665931
0.00000000
0.00133186
0.00166483
0.00818695
0.01242960
0.00965600
0.00675920
0.00675920
0.00965600
0.00675920
0.00675920
0.00965!300
0.00675920
0.00965600
0.00675920
0.00965600
0.00965600
0.01504871
0.01504871
0.00978186
0.00978186
0.00978186
0.01504871
0.00978186
Education
Tax Rate
2017
0.00179000
0.00179000
0.00044750
0.00044750
0.01140000
0.00179000
0.01114154
0.00779908
0.00779908
0.01114154
0.00779908
0.00779908
0.01114154
0.00779908
0.01114154
0.00779908
0.01114154
0.01114154
0.01390000
0.01140000
0.00903500
0.00903500
0.00741000
0.01390000
0.00903500
Total
Tax Rate
0.01209039
0.00179000
0.00250758
0.00302260
0.02406329
0.02101567
0.02607710
0.01825397
0.01825397
0,02607710
0.01825397
0.01825397
0.02607710
0.01825397
0.02607710
0.01825397
0.02607710
0.02607710
0.03717681
0.03467681
0.02416513
0.02416513
0.02254013
0.03717681
0.02416513
Pickering
Billing
46,189,776
0
109,827
3,593
125,794
778,713
4,561,559
31,218
167,746
246,541
7,047
0
3,117,053
501
183,291
315
463,381
0
1 '171 ,434
78,100
9,267
72,145
10,625
423,932
8,640
Region
Billing
84,478,338
0
200,866
6,572
230,070
1,424,218
8,342,819
57,096
306,797
450,909
12,889
0
5,700,904
916
335,229
576
847,496
0
2,142,483
142,840
16,949
131,952
19,434
775,347
15,802
Education
Billing
22,707,492
'1,099
67,490
1,766
320,363
205,103
9,626,331
65,879
353,996
520,279
14,872
0
6,577,967
1,057
386,803
664
977,880
0
1,978,941
108,207
15,655
121,877
14,72'1
716,163
14,595
TOTAL
BILLING
153,375,606
1,099
378,184
11,932
676,227
2,408,034
22,530,710
154,193
828,539
1,217,729
34,808
0
15,395,923
2,473
905,324
1,554
2,288,756
0
5,292,858
329,147
41,870
325,975
44,780
1,915,442
39,036
KT Large Industrial (New Construction) 14,360,000 0.00822810 0.01504871 0.01140000 0.03467681 118,156 216,099 163,704 497,959
KU Large lnd Excess Land (New Construction) 0 0.00534827 0.00978186 0.00741000 0.02254013 0 0 0 0
GT Parking Lot 351,500 0.00527956 0.00965600 0.01114154 0.02607710 1,856 3,394 3,916 9 166
Total Taxable 14 900 283 277 57 880 509 ·· 105 859 993 44 966 822 208,707,324
Property Class -Payments in Lieu
RF Residential
RP Residential-Tax Tenant
RG Residential -General
RH Residential -Full Shared PIL
FF Farm
FP Farm-Tax Tenant
CF Commercial Full
CH Commercial Full-Shared PIL
CP Commercial Full-Tax. Tenant
CG Commercial General
CV Commercial Full -Excess Land
CW Commercial General Excess Land
CZ Commercial Gen" Vacant Land
CJ Commercial -Vacant Land Shared PIL
DH Office Building Full -Shared PIL
IH Industrial Full-Shared PIL
IP Industrial Full-Tax Tenant
IK Ind. Excess Land-Shared PIL
IQ Ind. Excess Land Tax Tenant PIL
IJ Industrial Vacant Land Shared PIL
LK Large Ind. Excess Land-Shared PIL
Ll Large Ind. Water Intake-Shared PIL
135,025,975
43,245,675
62,204,850
238,550
104,361,125
33,101,400
116,513,416
39,153,680
2,185,825
47,751,150
1,232,275
1,833,900
2,392,500
149,750
27,612,150
15,651,795
255,025
8,952,825
233,475
2,810,000
1,596,800
9,769,600
LS Large Ind. Generating Station ·· Shared PIL 29,848,500
40,376,800 LN Large Ind. Non-Gen Stn-Shared PIL
Total PILS 726,497,041
_Q@_n_Q_ Totals ~~~~~1~5;,;6~2;;;~~780J.1!l.. __ ,
0.00364108
0.00364108
0.00364108
0.00364108
0.00072822
0.00072822
0.00527956
0.00527956
0.00527956
0.00527956
0.00369569
0.00369569
0.00369569
0.00369569
0.00527956
0.00822810
0.00822810
0.00534827
0.00534827
0.00534827
0.00534827
0.00822810
0.00822810
0.00822810
0.00665931
0.00665931
0.00665931
0.00665931
0.00133186
0.00133186
0.00965600
0.00965600
0.00965600
0.00965600
0.00675920
0.00675920
0.00675920
0.00675920
0.00965600
0.01504871
0.01504871
0.00978186
0.00978186
0.00978186
0.00978186
0.01504871
0.01504871
0.01504871
0.00179000
0.00179000
0.00000000
0.00179000
0.00044750
0.00044750
0.01114154
0.01114154
0.01114154
0.00000000
0.00779908
0.00000000
0.00000000
0.00779908
0.01114154
0.01390000
0.01390000
0.00903500
0.00903500
0.00903500
0.00903500
0.01390000
0.01390000
0.0'1390000
0.01209039
0.01209039
0.01030039
0.01209039
0.00250758
0.00250758
0.02607710
0.02607710
0.02607710
0.01493556
0.01825397
0.01045489
0.01045489
0.01825397
0.02607710
0.03717681
0.03717681
0.02416513
0.024'16513
0.02416513
0.02416513
0.03717681
0.03717681
0.03717681
491,640
157,461
226,493
869
75,997
24,105
615,140
206,714
11,540
252,105
4,554
6,778
8,842
553
145,780
128,785
2,098
47,882
1,249
15,029
8,540
80,385
245,597
332,224
3,090,359
899,180
287,986
414,241
1,589
138,994
44,086
1,125,054
378,068
21,106
461,085
8,329
12,396
16,171
1,012
266,623
235,539
3,838
87,575
2,284
27,487
15,620
147,020
449,181
607,619
5,652,084
241,696
77,410
0
427
46,702
14,813
1,298,139
436,232
24,353
0
9,611
0
0
1,168
307,642
217,560
3,545
80,889
2,109
25,388
14,427
135,797
414,894
56'1,238
3,914,040
1,632,516
522,857
640,734
2,884
261,693
83,004
3,038,332
1,021,014
57,000
713,190
22,494
19,173
25,013
2,734
720,045
581,884
9,481
216,346
5,642
67,904
38,587
363,203
1 '109,672
1,501,081
12,656,483
60~8 111512078 488~ 221,363,808
w w
App#
82 /16
83 /16
84 /16
01 /17
02 /17
03 /17
04 /17
05 /17
06 /17
07 /17
Reason for Adjustment
Razed by demolition
Gross or manifest clerical error by MPAC
Gross or manifest clerical error by MPAC
Ceases to be liable for tax at rate it was taxed
Ceases to be liable for tax at rate it was taxed
Gross or manifest clerical error by MPAC
Gross or manifest clerical error by MPAC
Gross or manifest clerical error by MPAC
Gross or manifest clerical error by MPAC
Gross or manifest clerical error by MPAC
City of Pickering
Section 357/358 Adjustment to Taxes
May 8, 2017
Details Year City
Basement finish was removed by owner 2016 7.58
No recommendation; not a gross or manifest clerical error 2015
No recommendation; not a gross or manifest clerical error 2014
Portion transferred to City; should be exempt 2016 8.78
Portion transferred to City; should be exempt 2016 74.74
Basement size incorrect 2014 18.75
Basement size incorrect 2015 28.24
Basement size incorrect 2016 37.90
No recommendation; not a gross or manifest clerical error 2015
No recommendation; not a gross or manifest clerical error 2016
175.99
Region Education
13.98 3.76
16.19 4.35
137.86 37.07
36.19 10.15
53.15 14.63
69.91 18.80
327.28 88.76
Total
25.32
29.32
249.67
65.09
96.02
126.61
592.03
Type of
Application
357
358
358
357
357
358
358
357
358
357
);;>: ~ n X 3: m ~
F d
~ "'0 0 ~
~
2
....l "
34
~~Cit;
PlCKERlNG
From: Stan Karwowski
Director, Finance & Treasurer
Report to
Executive Committee
Report Number: FIN 10-17
Date: May 8, 2017
Subject: Commodity Price Hedging Agreements Report
Recommendation:
It is recommended that Report FIN 10-17 from the Director, Finance & Treasurer
regarding commodity price hedging agreements be received for information.
Executive Summary:
The Commodity Price Hedging Policy FIN 060, approved by Council per Resolution
#88/1 0, requires a Report to Council at least once each fiscal year with respect to any
and all commodity price hedging agreements in place containing, at a minimum, all
information required by Section 6(1) 0. Reg. 653/05, as amended, as well as:
1. A statement about the status of the agreements during the period of the Report,
including a comparison of the expected and actual results of using the
agreements.
2. A statement by the Treasurer that all of the agreements entered during the period
of the Report are consistent with the municipality's statement of policies and
goals relating to the use of Commodity Hedging Price Agreements; and
3. Such other information as Council may require.
The City has entered into hedging agreements for the commodities of natural gas and
electricity procurement through Local Authority Services Ltd. (LAS), which is a wholly
owned subsidiary of the Association of Municipalities of Ontario (AMO).
Financial Implications:
The LAS Hedge Procurement Program currently includes 138 municipalities. It buys
energy commodities at varying percentages of their total volume through forward price
hedge contracts, rather than being subject to 1 00% of the price volatility through the
Spot Market.
Report FIN 10-17 May 8, 2017
Subject: Commodity Price Hedging Agreements Report Page 2
The City has elected to continue with Hedging 65% of both the City's natural gas and
electricity requirements while the remaining 35% is purchased at fluctuating Spot
Market prices.
Natural Gas
The 2017 natural gas budget is $400,852. To protect the City's budget plan, the City
has entered into the LAS Natural Gas Procurement Program for the period November 1,
2016 to October 31, 2017 at the hedge price of 12.9¢/m3.
Electricity
The 2017 hydro budget for all City operations including streetlights is $3.05 million. The
LAS Electricity Procurement Program hedged purchase price is $23.80/MW (program
fees included), which equates to a per kWh contracted price of 2.38¢/kWh, for the
period of January 1, 2017-December 31, 2017. This results in an expected all-
inclusive commodity cost of 12.057¢/kWh.
Discussion:
Volatile shifts in utility pricing create significant challenges in maintaining utility budgets.
This uncertainty in energy pricing can impact decision making and cost controllability for
the City. The LAS Hedge Procurement Program stabilizes energy pricing, which assists
in maintaining the Council approved budget every year. The City has hedged 65% of
the City's municipal natural gas and electricity requirements at the prices contained in
this report with the remaining 35% of the City's energy consumption being purchased at
spot market prices for the 2017 term. This spot market exposure provides cost savings
opportunities to the City compared to the current Regulated Price Plan (RPP), in
addition to the price stability provided by the hedge purchase price.
LAS Natural Gas Hedge Procurement Program -Enrolled April -2006
Commodity Expenditure-2016-$307,257
Current Contract Price-November 1, 2016-October 31, 2017 -12.9¢/m3
Hedged Volume-65%
The LAS 2017 hedged purchase price for the purchase only portion of natural gas
decreased by 13% (or 2¢/m3) from the 2016 rate. However, the delivery charge has
increased over the same period which partially offsets any potential savings from the
hedge purchase price. Additionally, the province will begin including a Cap & Trade
charge of 3.4 ¢/m3 to the delivery charges beginning January 1, 2017. This has resulted
in an overall increase to the cost for the supply and delivery of natural gas compared to
the 2016 rate.
35
36
Report FIN 10-17
Subject: Commodity Price Hedging Agreements Report
LAS Electricity Procurement Program -Enrolled January-2011
Commodity Expenditure-2016-$2,653,162
May 8, 2017
Page 3
Current Contract Price-January 1, 2017-December 31, 2017-2.38¢/kWh
Total Expected LAS Commodity Rate -12.057¢/kWh which includes: 65% Hedge
Price + 35% Average Hourly Ontario Energy Price + Average Global Adjustment
The LAS 2016 hedged purchase price portion decreased by 9% (or 0.222¢/kWh) from
the 2016 rate. It is estimated that an all-inclusive cost avoidance of 0.94¢/kWh should
be realized, compared to the average Time of Use rates of 11.81 ¢/kWh. Additionally,
LAS hedged a block of off-peak power for municipal streetlight accounts that is
expected to realize a cost avoidance of 0.94¢/kWh compared to the current Rate
Protection Plan rate of 11.81 ¢/kWh during Off-Peak hours. However, due to an
increase in the Global Adjustment Rate and Ontario's Average Hourly Energy pricing,
an increase to the overall cost of electricity is expected to increase 1.525¢/kWh
compared to the 2016 all-inclusive rate.
Treasurer's Statement:
The objectives of the LAS bulk hedging procurement programs are generally
synonymous with our municipal objectives:
Facilitates Budgeting-purchasing blocks of energy commodities will produce stable
prices for budgeting;
Competitive Pricing -provides savings on required purchases; and
Maximize Purchasing Power-pooling requirements with 138 municipalities and over
170 participating organizations can leverage better pricing than individual purchasing.
The LAS Natural Gas and Electricity Procurement Program has provided the City with a
sound commodity hedging strategy for natural gas and electricity. This benefits the City
when prices fall and protects the City as much as possible when prices rise. Annual
price stabilization and price benefits from bulk procurement along with individualized
support, advice and consumption data reports, provides the City with a means to
monitor its usage and more accurately forecast its annual utility budgets.
Attachments: None