Committee of the Whole Meeting Agenda

Transcription

1 Committee of the Whole Meeting Agenda Date: November 27, 2017 Time: 1:00 p.m. and reconvening at 6:30 p.m. Location: Council Chambers Level 2, City Hall Pages 1. Declarations of Interest: 2. Election of Chair and Vice Chair: 3. Delegation(s): In order to speak at a Committee of the Whole meeting, individuals must register no later than 9:30 on the day of the meeting. To register, complete the online application at cityclerks@burlington.ca or phone , ext Consent Items: Reports of a routine nature, which are not expected to require discussion and/or debate. Staff may not be in attendance to respond to queries on items contained in the Consent Agenda. 4.1 Burlington Lighthouse Program (BFD-02-17) Interim Tax Levy By-law (F-46-17) Signing officers of the corporation (F-49-17) Property Tax Billing and Collection Policy update (F-45-17) Quarterly financial status as at September 30, 2017 (F-47-17) Temporary Borrowing By-Law (F-54-17) Renewal of Ombudsman agreement (CL-21-17) Framework for managing twin city relationships (CL-20-17) 64-68

2 5. Regular Items: 5.1 Investment Policy update (F-50-17) Financial impacts of Bill 148 (HR-05-17) Network services contract (IT-01-17) PRESTO ten-year operating agreement (TR-09-17) New Street pilot project review and resurfacing (TS-11-17) Confidential Items: Note: this item will be discussed at 6:30 p.m. Confidential reports may require a closed meeting in accordance with the Municipal Act, Meeting attendees may be required to leave during the discussion. 7. Procedural Motions: 8. Information Items: 9. Staff Remarks: 10. Committee Remarks: 11. Adjournment:

3 Page 1 of Report BFD SUBJECT: Burlington Lighthouse Program TO: FROM: Committee of the Whole Fire Department Report Number: BFD Wards Affected: All File Numbers: Date to Committee: November 27, 2017 Date to Council: December 11, 2017 Recommendation: Authorize the City of Burlington to enter into services agreements with designated faith-based and community organizations who are willing to provide services and support during incidents or emergencies and that all the conditions of such services agreements be fulfilled; and Authorize the Burlington Fire Chief to sign services agreements and related documents associated with the Lighthouse Program, subject to the approval of the City Solicitor. Purpose: A Healthy and Greener City Healthy Lifestyles An Engaging City Good Governance Background and Discussion: Strategy/process The City of Burlington faces multiple climate change challenges. One of the most difficult is a need to provide support to vulnerable citizens during emergencies and 1

4 Page 2 of Report BFD extreme weather events as these residents are too often unaware about growing threats to their well-being and property. The Lighthouse Program is a community-led, asset based approach that can leverage existing community based energies and assets. The involvement of faith based organizations, whose traditions of community care and volunteerism, along with a wide range of professional expertise among their congregants, will add value to existing local networks. The project will identify neighbourhood resources and commit to developing Neighbourhood Emergency Resource Centres. Burlington Fire Department requires the authorization of Council for the Burlington Fire Chief to enter services agreements on behalf of the City and confirm the engagement of designated faith based and community organizations. Options considered Similar Lighthouse Programs are being developed in the Cities of Toronto, Brampton and Hamilton in conjunction with Faith & the Common Good, CREW Toronto, City of Brampton, Office of Emergency Management, Environment Hamilton, Tamarack Institute, Deepening Community team and School for Social Entrepreneurs Ontario. Financial Matters: Total Financial Impact The City of Burlington will reimburse the service provider for eligible expenses directly associated with the provision of services during an incident or emergency, to the satisfaction of the City as set out in Schedule B of the Agreement ( Eligible Expenses ). Source of Funding Emergency Plan Reserve Other Resource Impacts Not applicable Public Engagement Matters: The Burlington Lighthouse Program will be co-promoted by the City of Burlington and faith based and community organizations so that Burlington residents become aware of the Lighthouse Agency in their neighbourhood. 2

5 Page 3 of Report BFD Conclusion: The Burlington Lighthouse Program will enable the City to be able to engage the faithbased community in supporting the resilience of the City with a focus on vulnerable citizens. Respectfully submitted, Mike O Brien Community Emergency Management Coordinator Appendices: A. Lighthouse Agreement Report Approval: All reports are reviewed and/or approved by Department Director, Director of Finance and Director of Legal. Final approval is by the City Manager. 3

6 Appendix A of BFD This Agreement executed this day of, 2017 ( Effective Date ). B E T W E E N: [Service Provider] - AND - ("Service Provider") THE CORPORATION OF THE CITY OF BURLINGTON ("City") (referred to individually as a Party and collectively, the Parties ) WHEREAS the Emergency Management and Civil Protection Act, R.S.O. 1990, CHAPTER E.9, as amended, requires that every municipality shall develop and implement an emergency management program and the council of the municipality shall, by by-law, adopt the emergency management program; AND WHEREAS Burlington By-law (the Emergency Plan ) outlines the City s response to major incidents and emergencies, such as tornadoes, floods, and spills ( Incidents and Emergencies ) and defines the roles and responsibilities of officials from every level of government and from external agencies; WHEREAS community service organizations and faith based organizations engage with the local community and work with vulnerable populations on a regular basis and volunteers from these organizations can provide invaluable support and services to the City in the event of an Incident or Emergency, as set out in the Emergency Plan; WHEREAS the City has initiated a capacity-building project with various community service organizations and faith-based organizations throughout the City of Burlington with a mandate to engage and train volunteers to assist and provide services and support in the event of an Incident or Emergency, including but not limited to: the provision of warming and cooling centres; gathering points and temporary day time refuge locations for people affected by Incidents or Emergencies; language translation services; spiritual and emotional support; and opportunities to provide public education on emergency preparedness (the Lighthouse Program ); AND WHEREAS the Service Provider has the capacity, expertise and experience to supply such services in the event of an Incident or Emergency in the City of Burlington and wishes to participate in the Lighthouse Program; NOW THEREFORE in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are expressly acknowledged, the Parties agree to as follows: 1. SCOPE OF SERVICES 1.1. Upon receiving notification from the City that the City has activated its Emergency Plan, the Service Provider will provide services as set out below and detailed in Schedule A to this Agreement (the Services ): (a) Facilities [Service provider to select all applicable services] 4

7 Appendix A of BFD Gathering Point and Day-time Refuge Location Facilities Warming Centre Cooling Centre Member Contact Centre and/or Emergency Info. Centre Charging Centre Other (b) Subject Matter Experts Foreign Language Translators, Braille and/or Sign Language Spiritual and Emotional Support providers Information Technology Professions Cultural, Religious & Neighborhood Engagement Norms Knowledge Experts Other 2. SERVICE PROVIDER REPRESENTATIONS, WARRANTIES AND COVENANTS 2.1. The Service Provider represents, warrants and covenants that: (a) (b) (c) (d) (e) (f) (g) (h) it is, and shall continue to be for the Term, as defined in Section 4, a validly existing legal entity with full power to fulfill its obligations under this Agreement; it has, and shall continue to have for the Term, the experience and expertise necessary to deliver the Services described in Schedule A to this Agreement; it follows applicable federal and provincial laws and all municipal by-laws, including but not limited to the Ontario Fire Code and the Ontario Building Code, and does not know of or have reasonable grounds to know of, any fact that could result in or give rise to non-compliance with any such laws, regulations or by-laws; it will provide vulnerable sector and criminal background checks to the City for all volunteers prior to providing Services under this Agreement; all volunteers providing Services are above the age of eighteen (18) and are adequately trained and are familiarized, to the satisfaction of the City, with the emergency plans, protocols and procedures of the City; all volunteers are trained and familiarized with Ministry of Labour standards, First Aid and CPR; it will not permit use of facilities as overnight shelters, as governed by the Region of Halton s Social and Community Services standards; and it will only handle or prepare food after obtaining approval from the Halton Region Health Department. 3. CITY OF BURLINGTON SUPPORT 3.1. The City will provide the following support to the Service Provider during the Term of this Agreement: (a) Design and implement applicable training programs and workshops for Service Provider staff and volunteers based on the City s standards; 5

8 Appendix A of BFD (b) (c) (d) Provide administrative support, including but not limited to: circulating newsletters, documentation, and online resources; Provide ongoing communications, situation reports and status updates to the Service Provider during an Incident or Emergency; and Reimburse the Service Provider for eligible expenses directly associated with the provision of Services during an Incident or Emergency, to the satisfaction of the City as set out in Schedule B to this Agreement ( Eligible Expenses ). 3.2 Other than the obligations listed above in this section, the City shall not have any additional obligations with respect to the Lighthouse Program. 4. TERM 4.1. The Term of this Agreement shall commence on the Effective Date and shall continue in full force and effect until either Party has provided notice to the other of termination pursuant to Section 5 of this Agreement. 5. TERMINATION 5.1. This Agreement may be terminated by either Party by giving thirty (30) days notice in writing to the other Party Termination of this Agreement pursuant to clause 5.1 above shall not relieve either Party of any ongoing obligation(s) incurred in accordance with this Agreement prior to its termination Both the Service Provider and the City may give immediate notice of termination if conditions are such that the Service Provider and/or the City is/are unable to provide Services without compromising the health or safety of staff, volunteers or Burlington residents Each and every one of the following events is an Event of Default : a) Any of the Service Provider s representations, warranties or covenants made to the City by the Service Provider are false, misleading or inaccurate; or b) The Service Provider engages in or permits any conduct or act which in the opinion of the City is improper or offends community standards of tolerance. 5.5 In an Event of Default, the City shall have the following remedies: a) Take steps to disassociate itself from the Service Provider, including issuing communications to the public; b) Terminate this Agreement immediately without liability, penalty or costs; and c) Avail itself of any of its legal remedies it may deem appropriate. 5.6 Where the Service Provider is in default of this Agreement, the Service Provider shall immediately take steps to disassociate itself from the City and the Service Provider shall not directly or indirectly at any time or in any manner whatsoever identify or associate itself with the City. 6 RECORDS MANAGEMENT 6

9 Appendix A of BFD The Service Provider will establish, maintain, and retain records of Services offered, as applicable, during an Incident or Emergency. The records are for statistical and audit purposes only and will contain minimal personal information. As such, the records will include: (a) names of people directly involved in the Incident or Emergency; (b) the Postal Code of primary residence address of people directly involved in the Incident or Emergency; (c) a contact phone number and/or for the people directly involved with the Incident or Emergency in order to provide any required follow-up service, as applicable; and (d) depending on the situation, other information may be requested by the City on a case by case basis. 6.2 The Service Provider will keep the records in a secure place and will deliver all records to the City within thirty (30) days, after the conclusion of the Incident or Emergency response. 7 REPORTING 7.1 If the Services of the Service Provider are required to support the City during an Incident or Emergency, the Service Provider will provide the City with a summary of events and/or a debriefing within ten (10) days after the start of the Incident or Emergency. After the Incident or Emergency, the Service Provider will, within sixty (60) days, provide to the City a final report and financial accounting of its activities during the Incident or Emergency. 8 INSPECTION 8.1 The City may, with the approval of the Service Provider, and during normal business hours, enter upon the Service Provider s premises to review the progress of the activities and Services described in this Agreement. 9 INSURANCE 9.1 The Service Provider shall obtain and maintain in force during the Term of this Agreement, at its cost, the following insurance policies: (a) general liability insurance insuring all responsibilities, operations and services as described in this Agreement. The policy will be extended to include bodily injury and property damage, personal injury and advertising liability, abuse coverage and contractual liability to a limit of not less than two million dollars ($2,000,000) per occurrence. The policy will include volunteers as additional insureds. The policy shall include a cross liability and severability of interest clause and be endorsed to name the Corporation of the City of Burlington as an additional insured and; (b) Non-owned automobile liability to a limit of not less than $1,000, The Service Provider shall ensure that all policies of insurance will: (a) be written with an insurer licensed to do business in the Province of Ontario; (b) be non-contributing with and will apply only as primary and not excess to any other insurance or self-insurance available to the City; and (c) contain an undertaking by the insurers to notify the City in writing no less than thirty (30) Business Days prior to 7

10 Appendix A of BFD any termination or cancellation of coverage unless otherwise required by law. Any deductible amounts will be borne by the Service Provider. 9.3 Within ten (10) days prior to the execution of this Agreement, the Service Provider shall provide to the City proof of insurance on a form of a certificate of insurance which has been signed by an authorized representative of the insurer. The Service Provider will make available complete certified copies of all applicable insurance policies for examination if required by the City. 9.4 The Service Provider shall deliver to the City certificates of insurance evidencing renewal or replacement of policies required under this Agreement at least fifteen (15) days prior to the expiration or replacement of the current policies without demand by the City. 10 INDEMNITY 10.1 The Service Provider will indemnify, save harmless, and defend (at the discretion of the City) the City, its elected officials, and any other person for whom it is in law responsible for, from any kind of liability, suit, claim, demand, fine, action, or proceeding of any kind which may be brought against it, and from and against any and all losses, costs, damages, or expenses (including reasonable legal fees) suffered or incurred by the City (the Claims and Losses ), howsoever caused, including, but not limited to, by reason of any damage to property or injury (including injury resulting in death) to any person, in any way connected with this Agreement, or arising from any breach of or nonperformance by the Service Provider of any provision of this Agreement, unless such Claims and Losses are caused by the negligence or willful misconduct of the City or those for whom in law it is responsible. 11 NOTICE 11.1 Any notice or other communication required or permitted to be given by this Agreement shall be in writing and shall be effectively given if: (a) delivered personally; or (b) sent by prepaid courier services; or (c) sent by facsimile to the Service Provider or the City, and subsequently by regular mail service Any notice so given or made pursuant to this Section shall be deemed to have been given and received: (i) with regards to or fax, the date on which the or fax was sent (if after business hours, then deemed to have been received on the next business day) and (ii) with regards to pre-paid courier service or regular mail, 5 business days after the notice was mailed. Both Parties agree to update the other Party of any changes to the contact information In the case of the City, any notice or communication shall be addressed to: The Corporation of the City of Burlington 426 Brant St, Burlington, ON L7R 3Z6 Attention: Mike O Brien Community Emergency Management Coordinator Tel: (905) ext

11 Appendix A of BFD In the case of the Service Provider, any notice or communication shall be addressed to: Attention: Tel: ( ) 12 CONFLICT OF INTEREST 12.1 The Service Provider will carry out the Lighthouse Program without any actual, potential or perceived conflict of interest. For greater clarity, a conflict of interest includes any circumstances where the Service Provider or any person who has the capacity to influence the Service Provider s decisions, has outside commitments, relationships or financial interest that could, or could be seen to interfere with the Service Provider s objective, unbiased and impartial judgment relating to the Lighthouse Program, the use of in-kind support, or both The Service Provider will disclose to the City, without delay, any situation that a reasonable person would interpret as an actual, potential, or perceived conflict of interest; and comply with any terms and conditions that the City may prescribe because of the disclosure. 13 CONFIDENTIALITY 13.1 Neither party shall disclose to third parties any Confidential Information or Confidential Data relating to the provision of Services Confidential Information" and Conf idential Data mean all confidential information disclosed by a Party to the other Party, whether orally or in writing, that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure The Service Provider acknowledges that the City is bound by the Municipal Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c. M 56 ( MFIPPA ) and any information provided to the City may be subject to protection or disclosure in accordance with MFIPPA. 14 COMMUNICATIONS 14.1 The Service Provider shall provide to the City, prior to release, an electronic copy of all reports, announcements, brochures, audiovisual materials, internet materials, advertising and publicity, including design or other public communication or publication in relation to the Lighthouse Program The Service Provider will not make any public announcement related to the Lighthouse Program activities and Services until the City has been notified of the announcement The Service Provider will respond to requests by the City for information about any public announcement as soon as possible and in any event, will provide an initial response within twentyfour (24) hours The Service Provider will acknowledge that it is a participant in the Lighthouse Program by using the official Lighthouse Program logo (the Logo ), which will be provided to the Service Provider by the City. The Service Provider will immediately discontinue using the Logo once it ceases to participate in the Lighthouse Program. 9

12 Appendix A of BFD GENERAL PROVISIONS 15.1 If any provision of this Agreement is held invalid, illegal or unenforceable, (a) the remainder of this Agreement and its application to any person or circumstances shall not be affected thereby; and (b) the Parties will negotiate in good faith to amend this Agreement to implement the intentions set forth herein The laws of the Province of Ontario and the federal laws of Canada shall govern this Agreement The Service Provider shall not assign this Agreement in whole or in part without the prior written consent of the City This Agreement shall not be varied, altered, amended or supplemented except in writing signed by the authorized representatives of both Parties No waiver of a breach by a Party under this Agreement shall constitute a consent to or waiver of any other different or subsequent breach The Service Provider acknowledges that it is bound by the Ontario Human Rights Code (the HRC ) amended from time to time and all other applicable laws The Service Provider acknowledges that it shall be compliant with all applicable requirements, specifications and standards for accessibility established in accordance with the HRC, the Ontarians with Disabilities Act as amended from time to time and the Accessibility for Ontarians with Disabilities Act as amended from time to time, and regulations made thereto and any direction from the City For the purposes of interpretation: (a) words in the singular include the plural and vice-versa; (b) words in one gender include all genders; (c) the background and the headings do not form part of the Agreement; they are for reference only and shall not affect the interpretation of the Agreement; (d) any reference to dollars or currency shall be to Canadian dollars and currency; and (e) include, includes and including shall not denote an exhaustive list This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement Each party is an independent contractor and this Agreement shall not constitute or be considered to create a partnership, joint venture, agency or employer/employee relationship between the Parties unless expressly so stated herein. Neither the Parties, nor any of their employees or agents, shall have the power or authority to bind or obligate the other Party unless expressly so stated herein. 10

13 Appendix A of BFD The rights and remedies of the City under this Agreement are cumulative, and not in substitution for, any of its rights and remedies by law or in equity The Service Provider agrees that monetary damages are not an adequate remedy if the terms of this Agreement are breached, and that the City will suffer irreparable damage. Therefore, the City, in addition to any other legal or equitable remedies, shall be entitled to seek an injunction or similar equitable relief against such breach or threatened breach If this Agreement is signed in the name of a corporation, partnership, business, association, club or society, the person signing represents and warrants that he/she has full authority to sign this Agreement and to bind such organization, and that if he/she is not so authorized, he/she will be personally liable for the performance of this Agreement. IN WITNESS WHEREOF, the Parties have caused this agreement to be duly executed as of the Effective Date. THE CORPORATION OF THE CITY OF BURLINGTON SERVICE PROVIDER David Lazenby Chief, Burlington Fire Department WITNESS Name: Title: I have the authority to bind the Service Provider. WITNESS Name: Title: Name: Title: Date signed by the City:, Date signed by the Service Provider:,

14 Appendix A of BFD SCHEDULE A SERVICE PROVIDER DETAILS OF THE SERVICES WILL BE PROVIDED BASED ON THE OPTIONS SELECTED BY THE PROVIDER IN SECTION

15 Appendix A of BFD SCHEDULE B ELIGIBLE EXPENSES ELIGIBLE EXPENSES WILL DEPEND ON THE SERVICE OPTIONS SELECTED BY THE PROVIDER IN SECTION

16 Page 1 of Report F SUBJECT: 2018 Interim Tax Levy By-Law TO: FROM: Committee of the Whole Finance Department Report Number: F Wards Affected: All File Numbers: Date to Committee: November 27, 2017 Date to Council: December 11, 2017 Recommendation: Approve By-law XX-2017 attached as Appendix A to finance department report F which provides for the levy of the 2018 Interim taxes. Background and Discussion: The City bills property taxes twice a year; first at the beginning of the year with installment due dates in February and April. This is known as interim billing. The second billing, known as final billing, is completed upon the approval of the city and region s budgets and receipt of the education tax rates from the province. The final billing installment due dates are in the months of June and September. A by-law approved by Council is required for each of the billings. By-law XX-2017, attached as Appendix A, provides for the levy of interim taxes for the 2018 taxation year as authorized under the authority of the Municipal Act, Strategy/process The interim levy is calculated based on the assessments provided in December by the Municipal Property Assessment Corporation multiplied by 50% of the applicable notional tax rate (2017). At the time of writing this report, notional tax rates, used to raise approximately one-half of approved 2017 budgets, are not available as the City is not in receipt of the 2018 assessment roll. Once received, notional rates will be calculated to apply to the 2018 interim levy. The rates will restate the 2017 tax rate to 14

17 Page 2 of Report F an amount that when applied to the new assessment values will generate one-half of the tax revenue as per the approved 2017 budget. For properties in the commercial, industrial and multi-residential classes (known as the capped classes) the capping and clawbacks will be adjusted such that the interim bill will equal 50% of the annualized 2017 taxes. With the exception of the capped classes, this may result in some properties interim taxes exceeding 50% of prior year s taxes. Once approved by Council, Finance staff will generate the interim tax bills to be forwarded to property owners in order to meet the legislative time requirement for the initial interim tax due date. The interim taxes will be due in two installments as follows: February 20, 2018 April 20, 2018 Financial Matters: Taxes are being levied on behalf of the Region and Boards of Education. These amounts will be paid to the appropriate bodies in accordance with legislated payment schedules. Public Engagement Matters: Interim tax bills will be mailed to property owners in January Advertisements will be placed in the local newspaper to remind taxpayers of the tax due dates. Conclusion: By-law XX-2017 provides for the interim taxes for 2018 taxation year as authorized under the authority of the Municipal Act, Respectfully submitted, Ann Marie Coulson Manager of Financial Planning and Taxation ext

18 Page 3 of Report F Appendices: A. By-law XX-2017, A by-law to levy 2018 interim taxes Report Approval: All reports are reviewed and/or approved by Department Director, Director of Finance and Director of Legal. Final approval is by the City Manager. 16

19 F Appendix A THE CORPORATION OF THE CITY OF BURLINGTON BY-LAW NUMBER XX-2017 A by-law to levy 2018 interim taxes and establish penalty and interest rates WHEREAS sections 317 and 345 of the Municipal Act, 2001, as amended, provides the authority for the Council of The Corporation of the City of Burlington to levy interim taxes and to charge penalty and interest rates for the default of payment; and WHEREAS it is desirable before the adoption of the estimates for 2018, to levy on the whole of the assessment according to the last returned assessment roll. NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF BURLINGTON HEREBY ENACTS AS FOLLOWS: 1) a) There shall be an interim levy on property within the City of Burlington which shall be calculated on the whole of the assessment for taxable property according to the last revised assessment roll, the sum produced by applying a notional tax rate (a tax rate derived from determining an amount not exceeding 50% of the 2017 approved budget when applied to the phased in assessment as delivered for 2018 taxation). b) The Levy determined in accordance with paragraph (a) of section 1 shall be adjusted for all properties in the multi-residential, commercial and industrial property classes to equal 50% of the taxes levied in 2017, adjusted to annualize any assessment changes incurred during ) The authority to adjust the interim levy of any property at the request of the property owner is delegated to the Treasurer. The Treasurer may adjust the interim levy of the property if the taxes imposed by this By-law are in excess of 50% of the taxes levied on the property in 2017, adjusted to annualize any assessment changes incurred during No adjustment made by the Treasurer shall reduce the 2018 interim levy below 50% of the 2017 adjusted tax amount. No adjustment shall be made by the Treasurer after the Final 2018 taxes for the property have been calculated. 3) The rates provided for in section 1 of this By-law shall be paid on the following dates: a) One half of the amount hereby levied shall become due and payable on February 20, 2018; and, b) The balance shall become due and payable on April 20,

20 F Appendix A 4) Any payment required to be made to The Corporation of the City of Burlington in accordance with the dates set out in section 3 which are not paid by those dates shall become due and payable and considered to be in default for the purposes of this By-law. 5) Upon default of the payment of the interim levy, or part thereof, late payment charges will be imposed as follows: a) Penalty of one and one quarter percent of the amount in default shall be added on the first day of default; and, b) Interest charges shall be applied at the rate of one and one quarter percent on the last day of each month on the outstanding tax balance. When a penalty has been applied in a given month, interest of one and one quarter percent will be prorated from the date of default. 6) Taxes may be levied in accordance with the provisions of this By-law on the assessment of property that is added to the Assessment Roll after this By-law is passed. 7) The Treasurer is authorized and directed to serve either personally, by mail or electronically notices of the taxes levied under the By-law to the person or persons taxed at the person s residence or place of business or upon the premises in respect of which the taxes are payable by such person, or to the taxpayer s mortgage company or third party designated by the property owner. 8) This by-law shall come into force on January 1, ENACTED AND PASSED this 11th day of December, Rick Goldring MAYOR Angela Morgan CITY CLERK 18

21 Page 1 of Report F SUBJECT: Signing officers of the corporation TO: FROM: Committee of the Whole Finance Department Report Number: F Wards Affected: not applicable File Numbers: Date to Committee: November 27, 2017 Date to Council: December 11, 2017 Recommendation: Approve the by-law attached as Appendix A to finance department report F designating signing officers for the corporation and those authorized to invest funds. Purpose: An Engaging City Good Governance Background and Discussion: The existing By-law , appoints certain municipal officers as cheque signing officers for the City of Burlington, in keeping with legislation and the City s desired operating practicies. The new by-law incorporates the authority to invest City funds. This is in a response to an internal audit on investments which recommended that the authority to invest funds and initiate trades with brokers be documented. Financial Matters: Not applicable 19

22 Page 2 of Report F Conclusion: The new by-law incorporates authority to invest funds and initiate trade with brokers as well as performs housekeeping amendments to change certain job titles and incorporate the position of Deputy City Manager. Respectfully submitted, Sandy O Reilly Controller and Manager of Financial Services Ext 7648 Appendices: A. By-law XX-2017, a by-law designating signing officers of the corporation Report Approval: All reports are reviewed and/or approved by Department Director, Director of Finance and Director of Legal. Final approval is by the City Manager. 20

23 The Corporation of the City of Burlington By law XX-2017 Appendix A of F City of Burlington By law XX-2017 Description A by law to designate those authorized to sign cheques and invest funds on behalf of the City of Burlington and to repeal By-law File: (F-49-17) Whereas Section 286 of the Municipal Act, 2001, authorizes the municipality to appoint a treasurer who is responsible for handling the financial affairs of the municipality, and to appoint deputy treasurers, and to ensure investments of the municipality are made in compliance with the regulations made under section 418 and Whereas Section 287 of the Municipal Act, 2001, allows the municipality to provide that the signatures on a cheque of the municipality be mechanically or electronically reproduced, and Whereas The Council of the Corporation of the City of Burlington (the Corporation ) deems it necessary to make deposits to the appointed Bank of the Corporation, hereinafter called the Bank, and Whereas all cheques of the Corporation must be drawn in the name of the Corporation, and Whereas the Corporation deems it necessary from time to time to receive from the Bank all related documents and electronic files, and Whereas the Corporation deems it necessary to invest in prescribed securities, in accordance with the prescribed rules, money that it does not require immediately, Now therefore the Council of the Corporation of the City of Burlington hereby enacts as follows: 1. All cheques of the Corporation shall be drawn in the name of the Corporation and shall be signed on its behalf by two individuals: The City Treasurer and Mayor or their designate(s). 2. The Corporation hereby designates the individuals holding the following positions to sign cheques in the event that the City Treasurer and/or Mayor are not 21 Page 1 of 3

24 The Corporation of the City of Burlington By law XX-2017 available: any two of the following: Appendix A of F City Manager; City Clerk; Controller and Manager of Financial Services; Manager of Financial Planning & Taxation; Deputy City Clerk; Deputy City Manager; 3. The signatures described in paragraphs 1 and 2 above may be mechanically or electronically reproduced. 4. The City Treasurer or designate, in combination with the City Manager or City Clerk, is authorized to give instructions, to provide verifications and approvals on behalf of the Corporation to the Bank and is authorized to sign and deliver any service requests or other banking agreements. 5. The City Treasurer or designate is hereby authorized for and on behalf of the Corporation to negotiate with, deposit with or transfer to the Bank, for the credit of the Corporation accounts only, all or any bills of exchange, promissory notes, cheques and orders for the payment of money and any other negotiable paper or electronic files for the said purposes. 6. The City Treasurer or designate is hereby authorized for and on behalf of the Corporation to arrange, settle and balance all accounts and financial records between the Corporation and the Bank, and to receive all paid cheques and vouchers, unpaid and unaccepted bills of exchange and other negotiable instruments or other electronically produced data. 7. The City Treasurer or designate is hereby authorized for and on behalf of the Corporation to invest in prescribed securities and initiate trades with brokers in accordance with the prescribed rules, money that it does not require immediately including, (a) money in a sinking, retirement or reserve fund; (b) money raised or received for the payment of a debt of the municipality or interest on the debt; and (c) proceeds form the sale, loan or investment of any debentures. 8. The City Treasurer or designate is hereby authorized for and on behalf of the Corporation to obtain delivery from the Bank of all stocks, bonds, and any other securities held by the Bank in safekeeping or otherwise for the account of the 22 Page 2 of 3

25 The Corporation of the City of Burlington By law XX-2017 Appendix A of F Corporation and to give valid and binding receipts therefore. 9. By-law is hereby repealed. Enacted and passed this 11 December 2017 Mayor Rick Goldring Clerk Angela Morgan Online version of this document does not contain signatures. Please contact City Clerk to obtain a copy of the signed original. 23 Page 3 of 3

26 Page 1 of Report F SUBJECT: Property Tax Billing and Collection Policy update TO: FROM: Committee of the Whole Finance Department Report Number: F Wards Affected: All File Numbers: Date to Committee: November 27, 2017 Date to Council: December 11, 2017 Recommendation: Approve the updated Property Tax Billing and Collection Policy as outlined in Appendix A to finance department report F Purpose: An Engaging City Good Governance Background and Discussion: Finance department report F brings forward the updated Property Tax Billing and Collection Policy. This policy presents information that applies to finance staff responsible for the collection and billing of property taxes. The city policy was last reviewed on March 30, The current policy is updated with housekeeping amendments to reflect any legislative, by-law and system updates. A number of other municipalities have been surveyed and our policies are consistent with current best practices. A noteable amendment relates to a recommendation coming from the Ombudsman report presented to Council (CL-13-17). The updated policy provides for supplementary tax billing installments to be better aligned with the regular final installments. The last supplementary installment date will be due after the final installment date. 24

27 Page 2 of Report F Financial Matters: In order to meet the city s budgetary expenditures for the fiscal year and legislated payment to the region and school boards, it is imperative that the city provide prompt and accurate billing of the levy and ensure prompt collection of the property taxes. Conclusion: Staff are providing information on the property tax billing and collection policy. The policy can be found in Appendix A. Respectfully submitted, Tracy Beggs Tax Collector ext Appendices: A. Property Tax Billing and Collection Policy Report Approval: All reports are reviewed and/or approved by Department Director, Director of Finance and Director of Legal. Final approval is by the City Manager. 25

28 Corporate Policy Appendix A of F Finance-Accounting Property Tax Billing and Collection Approved by Council on: Dec 11, 2017 Report Number: F Effective: Dec 11, 2017 Next Review: 2022 Purpose: To ensure that property taxes are billed and collected in a timely and effective manner to coincide with budgetary and legislative requirements. To ensure all taxpayers are treated fairly and equitably and to provide staff guidance for decision-making especially for situations where provincial legislation provides a choice, allows for the city and/or Treasurer discretion and for issues on which the legislation is silent. The policy will conform to current legislation and the Municipal Act. In the case where current legislation differs from this policy, legislation shall be followed. Policy Statement: Scope: The City of Burlington collects taxes on behalf of the city, Halton Region, the Halton District school boards, the local Business Improvement Areas and the Downtown Parking Area and is responsible to ensure the effective and efficient billing, collection and allocation of property taxes. This policy covers all aspects of the billing and collection of property taxes. Procedures related to a Municipal Tax Sale are carried out in accordance with Ontario Regulation 181/03 and not detailed in this policy. This policy excludes collection of payments-in-lieu of taxes. 26

29 Corporate Policy Objectives: Establish processes for billing property taxes Ensure timely collection of property taxes Establish processes to collect property taxes Procedures: Tax Billing Regular Tax Billings A levying by-law passed by Council is required in advance of either an interim or final tax billing. Interim tax billings are issued in January based on the assessment as per the assessment roll provided by the Municipal Property Assessment Corporation (MPAC) multiplied by 50% of the applicable notional tax rate. Final tax billings are produced after the passing of the annual city and Halton Region budgets and are based on tax rates established by by-law from the budget requirements of the city, region and Ministry of Education. The billing will be calculated to produce a tax billing equal to the assessment times the appropriate rate, all local improvement charges and any special charges levied by the city. The interim tax billing amount will be deducted from the total yearly amount calculated in order to produce final billing installment amounts. The tax bill will comply with the Standardized Tax Bill format as required under section 343(2) of the Municipal Act. Arrears are reflected in the first installment due date amount. Due Dates The first installment due date must be at least twenty-one (21) days after the date of mailing the tax bill in accordance with section 343(1) of the Municipal Act. Due dates will be clearly identified on the tax bill in accordance with the levying by-laws passed by Council. Due dates for the payment of taxes are traditionally in the following months: Interim Bill: Final Bill: February and April June and September Page 2 of 9 Property Tax Billing and Collection 27

30 Page 3 of 9 Corporate Policy Where due dates are delayed as a result of factors beyond the city s control, they shall then be set with regard to the notice provision above. Supplementary/Omitted Tax Billings The Municipal Property Assessment Corporation (MPAC) regularly provides additional assessment data on properties necessitating a supplementary billing in accordance with section 341 of the Muncipal Act. The city will bill for these additional assessments as soon as practical after receipt of the supplementary assessment rolls from MPAC. There are two sections of the Assessment Act that allow for assessment of property not included in the annual assessment roll. They deal with omissions and additions to the roll. Section 33 of the Assessment Act allows for the assessment of property that has been omitted from the roll. Omitted assessments can be added for the current year and, if applicable, for any part or all of the previous two years. Section 34 of the Assessment Act allows for the assessment of property that has increased in value due to an addition, renovation or construction during the current year. A supplementary assessment can also be issued when there has been a change in use since the return of the last revised roll. Supplementary assessments can be added for all or part of the current year. Supplementary and omitted tax billings will provide for two installment dates. The first due date must be at least twenty-one (21) days after the date of mailing. The second due date will always occur after the second due date of the final billing. Delivery of Tax Bills Tax bills and notices will be issued to the current owner(s) of the property at the time the bill or notice is generated. Property tax bills and notices are mailed to the address of the property unless the taxpayer advises the city, in writing, of an alternate mailing address. Use of the alternate mailing address continues until it is revoked in writing or ownership of the property changes. Regular tax bills will be delivered electronically via the epost TM service if the taxpayer has chosen to receive the tax bill in that manner. Any bill or notice sent by mail is considered delivered to and received by the addressee unless the notice is returned by Canada Post and an error in the mailing address is evident. Bills delivered via the epost TM service are considered delivered unless the epost TM account has been closed. Property Tax Billing and Collection 28

31 Corporate Policy Taxpayers are responsible to notify the city of any changes to a mailing address. Failure to notify the city of an address change in writing is not an error on behalf of the city. A mortgage listing of roll numbers, taxes due and owing and the due dates will be provided to each mortgage company who has provided the municipality with notification that they hold an interest in a particular property and will be paying the property taxes on behalf of the assessed owner(s). Settlement of Accounts The following methods will be accepted for tax payments: a) City of Burlington pre-authorized payment plans b) Through a financial institution by internet, telephone or in person. A banking fee may apply. c) By detaching the stub portion (remittance) and mailing cheque(s) to City of Burlington, P.O Box 5080, Burlington, ON, L7R 4G4 d) In person by cheque, cash or debit at the Service Burlington Counter, City Hall, 426 Brant Street, or by depositing a cheque with a stub portion (remittance) in the depository at the Locust Street entrance. e) By credit card online using a third party payment service provider at burlington.plastiq.com. Refer to Plastiq for service charge rates and payment processing times. Post dated cheques will be accepted and held by the city. Third party cheques will not be accepted. If three cheques are returned by the bank on a taxpayer s account, personal cheques from that taxpayer will no longer be accepted for a period of one year, unless they are certified. Should payment of a tax account be tendered in U.S. funds, it will be accepted at the exchange rate established by the bank on the processing date. Payments are applied to the oldest year outstanding penalty/interest, and when it is cleared, to the oldest year outstanding taxes, then to the next oldest year outstanding penalty/interest, and when it is cleared, to the next oldest year outstanding taxes, etc. Should a credit appear on the tax account as a result of a payment, it will be applied to subsequent installments not yet due in the current year. Page 4 of 9 Property Tax Billing and Collection 29

32 Corporate Policy At the written request of the taxpayer, a refund cheque may be generated, allowing sufficient time for the taxpayer s payment to clear their financial institution. Credit adjustments due to tax rebates or assessment changes are applied to any tax arrears on the property account firstly. Late Payment Charges The rate at which penalty and interest is charged is set by municipal by-law. Currently the rate is governed under the provisions of section 345 of the Municipal Act. Penalty of 1.25% of the amount in default will be added on the first day of default. Interest charges will be applied at the rate of 1.25% on the last day of each month on the outstanding tax balance. When a penalty has been applied in a given month, interest of 1.25% will be prorated from the date of default. Tax Collection Property taxes are a special lien on land in priority to every claim, privilege, lien or encumbrance except the Crown. Property taxes may be recovered, with costs, as a debt due to the city from the original owner(s) and/or any subsequent owner(s) of the property. The ultimate resolution to clearing unpaid taxes three or more years in arrears is through Tax Sale. This authority is provided to municipalities per Part XI of the Municipal Act, wherein it sets out the process for the Sale of Land for Tax Arrears. Prior to the commencement of the Tax Sale proceedings the following series of collection steps will have been taken. Arrears Notices Arrears notices are sent in the month following a due date and in December. The exception is in May, due to time constraints as a result of final billing preparation, however arrears will be included on the final tax bill. Notices are to be mailed not later than the 15 th of the month. Arrears notices for $10.00 or less are not produced, as it is not cost efficient. Balances of less than $1.99 are subject to small balance write offs at the end of the year. Page 5 of 9 Property Tax Billing and Collection 30

33 Corporate Policy Collection Letters In addition to arrears notices, collection letters are sent to all owners with arrears in the current and two previous years. Business Accounts For commercial and industrial tax accounts with current and two previous years of arrears, a collection letter is sent by regular mail in the first quarter of the year to the property owner(s) advising of the tax arrears situation. The letter asks for payment in full or a mutually acceptable payment arrangement to be made by a given date in order to avoid Bailiff action. If payment or acceptable payment arrangements are made, the account is monitored for compliance and follow up is done by telephone or in writing as required. Accounts that fail to respond with payment or an acceptable payment arrangement may be issued to the Bailiff for collection at the owner(s) cost. Bailiff tax recovery actions may include: Serving a Warrant to Distrain for Taxes to the property owner(s) Site visits Attornment of Rent (if directed by the city) under section 350 of the Municipal Act the city may seize the rent(s) of an income producing commercial property upon giving proper written notice to the tenants. Seize Goods/Chattels (if directed by the city) under section 351 of the Municipal Act the Bailiff can physically seize and remove goods/chattels from the property and ultimately sell items seized to recover the tax arrears. Residential Accounts First Notice For residential tax accounts with current and two previous years of arrears, a collection letter is sent in the second quarter of the year to the property owner(s) advising of the tax arrears situation. The letter asks for payment in full or a mutually acceptable payment arrangement. The letter details next steps that will be taken if satisfactory payment has not been made by October 31 st. If acceptable payment arrangements are made, the account is monitored for compliance and follow up is done by telephone or in writing as required. Satisfactory payment arrangements would include: joining the ratepayer defined pre-authorized payment plan, an agreed commitment to make set Page 6 of 9 Property Tax Billing and Collection 31

34 Corporate Policy payments on prearranged dates, or providing a series of post dated cheques in order to clear the third year of arrears by October 31 st. Second Notice For residential tax accounts with current and two previous years of arrears, a second request collection letter is sent in the third quarter of the year to the property owner(s) if payment arrangements have not been made. If there is no response to this notice additional collection efforts may be used at the discretion of the Tax Collector. Title Search If the third year remains outstanding as of November 1 st, a property title search may be undertaken to obtain information on any mortgage holders or interested parties. The identified parties are then notified in writing of the property tax arrears. Final Notice Prior to Tax Arrears Certificate Registration/Farm Debt Notice If the third year remains outstanding come January and no payment arrangement is in place, a letter is sent by registered mail in the first quarter to the owner(s) advising that the city will commence Municipal Tax Sale proceedings by registering a tax arrears certificate against title to the property. Also included in this letter is notice that if the owner(s) owns a farm anywhere in Canada they can apply for mediation and a stay of proceedings under the Farm Debt Mediation Act. Tax Arrears Certificate Registration If all efforts have failed to collect the tax arrears, a Tax Arrears Certificate may be registered against title and the procedures according to section 373 of the Municipal Act are followed. In brief, The city sends a Notice of Registration of Tax Arrears Certificate (Form 1) to the property owner(s) and all interested parties. The property owner(s) or interested party has one year from the date of registration in which to redeem the property for all taxes, interest and penalty outstanding, including any associated legal costs (called the cancellation price). Page 7 of 9 Property Tax Billing and Collection 32

35 Corporate Policy If full payment is not received within 280 days of registration and an Extension Agreement is not in place, the city will issue a Final Notice (Form 3) to the property owner(s) and all interested parties. If no response to the final notice is received, the account may be sent to the Bailiff. If the taxes remain unpaid after the one-year period has passed and no Extension Agreement has been entered into, the city may proceed with a Municipal Tax Sale. All costs incurred for collection to obtain information and/or collect tax arrears are payable by the property owner(s) as per the Scale of Costs By-Law. Extension Agreements Under authority of by-law an Extension Agreement may be entered into with the owner(s), their spouse, the mortgagee or a tenant at any point during the one-year redemption period. It extends the period of time in which the cancellation price is to be paid. The Extension Agreement defines the terms and timeline of the repayment, which must be reasonable. If there is a breach of the agreement the tax sale process recommences by returning to that step in the tax sale procedure immediately prior to the Extension Agreement being entered into. Additional Collection Tools Development Conditions Legislation allows the city to add conditions on applications for items such as but not limited to: official plan amendments, rezoning requests, condo exemption and land division under the committee of adjustments indicating that all property taxes levied against the property are paid before approval. Bankruptcy When a property owner(s) files for bankruptcy, the city is a secured creditor, as the property taxes are a special lien on the land in priortiy to every claim, privilege, lien or encumbrance. A letter is forwarded to the trustee advising them of the city s claim. Page 8 of 9 Property Tax Billing and Collection 33

36 Corporate Policy Severances In accordance with section 356 of the Municipal Act, where there are unpaid taxes on a parcel that is subject to severance, the city may apportion the taxes on the land among the parcels and direct what proportion of any part payment of taxes are to be applied on the parcels. In accordance with legislation, MPAC provides the city with the asessment values for the new parcels. Write Off of Taxes In accordance with section 354 of the Municipal Act, uncollectible taxes may be approved for write off by Council on the recommendation of the Treasurer. References: Roles: This policy is written in compliance with the Municipal Act, 2001, related Ontario Regulations made under the Act and applicable city by-laws, as amended from time to time. Accountable: The Manager of Financial Planning and Taxation is responsible for the review of this policy and adherence to its guidelines. Responsible: The Coordinator of Tax Billing and Collections is responsible for the management of this policy. Page 9 of 9 Property Tax Billing and Collection 34

37 Page 1 of Report F SUBJECT: Quarterly financial status as at September 30, 2017 TO: FROM: Committee of the Whole Finance Department Report Number: F Wards Affected: all File Numbers: Date to Committee: November 27, 2017 Date to Council: December 11, 2017 Recommendation: Receive and file finance department report F providing a quarterly financial status as at September 30, Purpose: An Engaging City Good Governance Background and Discussion: PART A - FINANCIAL POSITION On September 30, 2017, the investment portfolio for the City totaled $305.1 million which represents an increase of $29.8 million from the comparative figure of $275.3 million at September 30, The attached Appendix A shows investment income (interest earned and capital gain realized) to September 30, 2017 on the total investment portfolio. A distribution of investment income between the Reserve Funds and Revenue Funds will be made at year-end. Investment income has increased from $7.4 million in 2016 to $7.8 million in The current yield on the city investment is 2.57% compared to 2.72% in

38 Page 2 of Report F During the third quarter of 2017 the Bank of Canada delivered its first rate increase in almost seven years. Raising the rate on July 12 th from the existing 0.5% to 0.75%. A second increase was announced on September 6 th again raising the rate by 0.25% to 1%. The Bank is not expected to raise rates again until 2018 and the low interest rate environment will be maintained for the foreseeable future. Staff will continue to follow current events and their resulting impact on the market while managing the risk to the City s portfolio. Based on the economics of the market, staff will maintain the following investment strategies in 2017; While the interest rate environment remains low, maintain investments in the City s long-term portfolio but with reduced duration. As interest rates rise, adapt the City s long-term portfolio to invest in longer durations to maximize rate of return while managing risk to ensure there will not be a liquidity issue to meet commitments. Trade bonds for capital gains by taking advantage of market fluctuations generated by economic data. This practice resulted in realized capital gains of $1.8 million year to date compared to $1.6 million realized by September 30, This increase over prior year is the result of staff seeking to lock in existing capital gains within the portfolio based on expectations that rates would increase causing the gain to be lost. This strategy also allows staff to reinvest in the market for a higher yield. As at the end of the third quarter, staff is projecting a favorable variance of $700,000 in investment income because of realized capital gains for the year ending Appendix B provides a listing of the current portfolio by type of investment, and weighted average yield, in accordance with the Ontario Regulation 438/97. In following the City of Burlington s investment policy, the City can purchase Region of Halton bonds, up to but not greater than, the amount of the debenture issued on behalf of the City. As of September 30, 2017, the City s investment portfolio included $22.4 million Region of Halton bonds. As at September 30, 2017 the City s investment portfolio is compliant with the guidelines set out in the City s investment policy and goals adopted by the City. 36

39 Page 3 of Report F PART B - TAX COLLECTION Appendix C reflects property tax status at September 30, 2017 compared to September 30, The total current levy has increased to $395.9 million from $381.4 million, an increase of $14.5 million. Collections have increased by $12.0 million. Collections have traditionally been 92-94% of the current year levy for this time; they are currently at 93.6% compared to 94% in Total current and prior years arrears have increased to $29.5 million from $27.2 million representing a change in collections of $2.3 million. The total arrears have been 7-9% of the current year levy for this time and they are currently at 7.4% compared to 7.1% in Prior years arrears have decreased to $4.2 million from $4.5 million representing an improvement in collections of $0.3 million. Six residential properties have had a tax arrears certificate registered on title in Three of these have been paid up to date. There are 4 vacant land properties that were registered with a tax arrears certificate prior to 2017 that are currently under review. During the third quarter, 235 collection letters were sent to residential property owners with outstanding taxes dating back to 2015 compared to 253 in Approximately 30% have responded to make payment arrangements by September 30, Preliminary title searches to determine mortgagee will commence at the beginning of November on properties with 2 previous years of tax arrears for which payment arrangements have not been received. Letters will be sent to advise the owners and the mortgage companies of the tax arrears. These letters usually result in most accounts being paid by either the Mortgage Company or the owner(s) thus eliminating the necessity to register a tax arrears certificate on title in Staff continues to promote preauthorized payment plans. The year-to-year comparisons on the plans are detailed below. Sept 2017 Sept 2016 % Change Monthly Pre-Authorized Payment 16,059 15, % Due Date Pre-Authorized Payment Plan 3,658 3, % Ratepayer Defined Payment Plan (17.65%) Total 19,801 19, % 37

40 Page 4 of Report F Property tax bills are available electronically via Canada Post s epost service. This service currently stands at 1,859 accounts signed up for electronic bill presentment, representing 2.90% of all property tax accounts. PART C - DEBT AND FINANCIAL OBLIGATION LIMIT As of September 30, 2017, the City s total debt charges as a percentage of own source revenue is estimated to be 10.0%, which is within the council approved guideline of 12.5%, and regulation of 25%. (See Appendix D) The city has an estimated $102.2 million in total principal debt outstanding. Taking into consideration principal debt repayments of $13.2 million, as well as $22.8 million in debt which has been approved and not issued, total city principal debt projected to be outstanding at year end 2017 is approximately $111.7 million. PART D - RESERVES AND RESERVE FUNDS The status of the City s Reserves and Reserve Funds balances are disclosed in Appendix E. At September 30, 2017, the total of these balances amounted to $171.5 million, which is $20.2 million higher than the corresponding figure of $151.3 million at September 30, This increase is due to the timing of transfers into the reserve funds and timing of commitment pay outs. Of the total Reserves and Reserve Funds $66.2 million is committed for various projects leaving an uncommitted balance of $105.3 million. The commitments represent expenditures approved by Council in previous years capital budgets or funds held for specific future purposes. The following chart provides an historical perspective of uncommitted reserve and reserve fund balances as at September 30: 38

41 $ Millions Page 5 of Report F Reserve and Reserve Funds Uncommited Balance as at September Years PART E BUDGET MONITORING As of September 30, 2017, the operating budget shows a favourable variance of $3.1 million with a year end projected favourable variance of $2.6 million (Appendix F & G). The year end projection is largely due to favourable human resource costs resulting from staff gaping, favourable development revenues, partially offset by unfavourable purchased services costs. PART F Financial Position The financial status report provides information on significant balances on the City s statement of financial position. Information is provided on the City s short and long-term investments and cash balances. Information is also provided on taxes receivable. The reserve fund balances contain obligatory reserve funds which are shown as deferred revenue on the City s statement of financial position. Our net long-term liabilities are discussed in the section on debt and financial obligation limits. Significant balances are as follows: 39

42 Page 6 of Report F As at September 30th (Amount are in thousands of dollars) $ $ Cash & temporary investments 96,377 74,501 Taxes receivable* 28,969 27,325 Long term investments 208, ,770 Investment in Burlington Hydro Electric** 128, ,142 Deferred revenue - obligatory reserve funds 47,782 33,200 Net long-term liabilities 102, ,522 * Reported net of allowance for write-offs and based on four installments ** 2017 balance is as at December 31, 2016 The City s statement of financial position provides a long-term view of the City s financial health. A year over year comparison helps to identify indicators that may be of concern or interest. As of September 30, 2017, there was an increase in the cash and temporary investments balance of approximately $21.9 million. This increase from the prior year is primarily driven by the collection of Development Charges and the timing of the payment to the Joseph Brant Hospital expansion which has not yet been requested to be paid. While these indicators currently do not reflect any concern for the municipality it is important that they continue to be monitored on a regular basis. Financial Matters: Not applicable. 40

43 Page 7 of Report F Conclusion: To present the financial status of the City as at September 30, Respectfully submitted, Michelle Moore Coordinator of Financial Reporting ext 7535 Appendices: A. Securities Position and Performance B. Investment Portfolio C. Property Tax Collection D. Debt and Financial Obligation Limit E. Reserve Funds and Reserve F. Budget Monitoring (be Service) G. Budget Monitoring (by Cost Element) Report Approval: All reports are reviewed and/or approved by Department Director, Director of Finance and Director of Legal. Final approval is by the City Manager. 41

44 Appendix A City of Burlington of F SECURITIES POSITION AND PERFORMANCE COMPARISON OF THE FOURTH QUARTER OF 2015 WITH 2014 Period Ended September 30, 2017 September 30, 2016 Actual Budget Actual Budget Variance (where applicable) (where applicable) Net bank position $ 6,320,681 $ 4,501,316 $ 1,819,365 Special interest account* 56,664-56,664 Short term investments 90,000,000 70,000,000 20,000,000 Long term investments 208,676, ,770,093 7,906,182 Total City funds invested $ 305,053,620 $ 275,271,409 $ 29,782,211 Total Investment Income $ 7,834,717 5,300,000 $ 7,425,920 5,300,000 $ 408,797 (Current Fund Only) * Special interest investment account was created to set aside 2017 funding committed to the Joseph Brant Hospital expansion. 42

45 City of Burlington Appendix B of F INVESTMENT PORTFOLIO as at September 30, 2017 PORTFOLIO HOLDINGS ($000's) CURRENT YIELD (Weighted Average on cost) Long Term (at cost) Government of Canada $ 38, % Province of Ontario 41, % Region of Halton 22, % Other provinces 50, % Other municipalities 44, % Major banks 11, % Total Bonds $ 208, % Short Term Money market $ 90, % Special interest bank account % Cash in bank 6, % Total Investments $ 305, % 43

46 City of Burlington Appendix C of F PROPERTY TAX COLLECTION COMPARISION OF THE THIRD QUARTER OF 2017 WITH 2016 Period ended Sep 30, 2017 Sep 30, 2016 Percent of Percent of Amount Current Levy Amount Current Levy Variance Total Levy $ 395,900, % $ 381,379, % $ 14,521,033 Collections 370,618, % 358,616, % 12,002,577 Current year's arrears $ 25,281, % $ 22,763, % $ 2,518,455 Prior years' arrears 4,203, % 4,472, % (269,175) Total arrears $ 29,484, % $ 27,235, % $ 2,249,280 Annual Annual Budget Budget Penalties and interest earned on taxes $ 1,729,675 2,100,000 $ 1,643,269 2,000,000 $ 86,406 44

47 City of Burlington Appendix D of F DEBT AND FINANCIAL OBLIGATION LIMIT as at September 2017 Calculation of Net Debt Charges (2015 FIR) Gross Debt Charges $ 13,022,336 Long Term Commitments 3,842,299 NET DEBT CHARGES $ 16,864,635 Calculation of Annual Repayment Limit (2015 FIR) Total Revenue Fund Revenues $ 241,721,774 EXCLUDED REVENUE AMOUNTS: Government Grants 3,262,863 Deferred Revenue Earned 7,465,473 Other Municipalities 9,649,697 Sale of Land & Capital Assets (338,237) Deferred Revenues Earned 9,780,309 Donated Tangible capital assets - Government Business Enterprise Equity 4,294,598 Total Exclusions $ 34,114,703 NET REVENUE FIND REVENUES $ 207,607,071 25% of Net Revenue Fund Revenues 51,901,768 Less Net Debt Charges (16,864,635) ANNUAL REPAYMENT LIMIT AT JAN 01/16 $ 35,037, UPDATED ANNUAL REPAYMENT LIMIT 2015 Annual Repayment Limit $ 35,037,133 Net Adjustments Change in Debt Charges (6,494,070) Change Long Term Commitments* 2,560,000 Total NET ADJUSTMENT $ (3,934,070) 2017 Adjusted Annual Repayment Limit $ 31,103,063 City's Debt Charges as a Percentage of Net Revenues Fund Revenues 10.0% *Does not include the remaining commitment to the hospital as timing of the payment is uncertain 45

48 Appendix E City of Burlington Reserve Funds and Reserves As At September 30, 2017 with Comparatives from December 31, 2016 of F CAPITAL RELATED RESERVE FUNDS AND RESERVES A) Development Related Reserve and Uncommitted Balance BALANCE COMMITMENTS UNCOMMITTED Reserve Funds As at Dec 31, 2016 BALANCE Growth Studies 7,823 44,197-44,197 Library 35,435 24,849 42,075 (17,226) Transit 1,096, , ,618 Transportation* 1,638,369 6,601,420 1,252,034 5,349,386 Storm Drainage* 6,539,867 3,320,462 (2,305,325) 5,625,787 Fire Protection* (1,052,053) 38,222 1,053,291 (1,015,069) Parks & Recreation 1,619, , ,244 Park Dedication 12,991,869 15,208,614-15,208,614 Community Benefits 590, , ,000 - Future Services 6,220,517 13,664,002 7,431,719 6,232,282 Future Services Signs & Barricades 404, , ,841 Future Services Trees 415, , ,196 Total Development Related Reserve Funds $ 30,507,442 $ 41,725,666 $ 8,163,794 $ 33,561,871 B ) Vehicle and Equipment Reserve Funds Vehicle Replacements - Fire 2,052,744 1,482,283-1,482,283 Vehicle Replacements - RPM & PR 4,126,335 2,151,118-2,151,118 Vehicle Replacements - Tyandaga 347, , ,058 Total Vehicle and Equipment Reserve Funds $ 6,527,020 $ 3,957,460 $ - $ 3,957,460 *A portion of the committed balance represents borrowing between Development Charge Reserve Funds for capital projects. The current outstanding amount borrowed is disclosed in the commitment however repayment is expected to take place over a number of years. 46

49 City of Burlington Reserve Funds and Reserves As At September 30, 2017 with Comparatives from December 31, 2016 C) Transit Related Reserve Funds Uncommitted Balance BALANCE COMMITMENTS UNCOMMITTED As at Dec 31, 2016 BALANCE Transit Inter-Regional/Capital 215,431 5,817-5,817 Transit Capital 534, , ,626 Provincial Gas Tax 1,395, , ,171 Federal Gas Tax - Transit Dedicated 340,460 1,028,103-1,028,103 Transit Shelters 1,262 1,262-1,262 Total Transit Related Reserve Funds $ 2,486,629 $ 1,735,978 $ - $ 1,735,978 D) Other Capital Reserve Funds Burlington Hydro Proceeds 20,760,715 16,651,756 1,153,158 15,498,598 Capital Purposes 3,865,842 9,489,847 8,811, ,759 Infrastructure Renewal 1,239,535 4,350,635 2,000,000 2,350,635 Information Technology Renewal 830, , ,866 MRBII 20,285 77,304-77,304 Federal Gas Tax 2,760,599 4,456,070-4,456,070 Public Art Reserve Fund 589, ,777 20, ,877 Railway Crossing - 3,515,758 3,515,758 - Joseph Brant Memorial Hospital - 19,296,039 19,296,039 - Strategic Land Acquisition 2,052,897 3,849,063 2,730,665 1,118,398 Total Other Capital Reserve Funds $ 32,120,164 $ 62,992,114 $ 37,527,608 $ 25,464,506 47

50 City of Burlington Reserve Funds and Reserves As At September 30, 2017 with Comparatives from December 31, OPERATING RELATED RESERVE FUNDS AND RESERVES A) Stabilization Reserves and Reserve Funds Uncommitted Balance BALANCE COMMITMENTS UNCOMMITTED As at Dec 31, 2016 BALANCE Contingency 3,972,317 10,091,782 4,707,948 5,383,834 Severe Weather 3,274,815 3,274,815-3,274,815 Tax Rate Stabilization 3,328,204 5,753,633 2,591,271 3,162,362 Building Permit Stabilization 3,190,672 3,190,672-3,190,672 Planning Fee Stabilization 1,750,510 1,750,510-1,750,510 Engineering Fee Stabilization 200, , ,793 Commodity Stablization Reserve Fund 35, , ,486 Total Stabilization Reserve Funds $ 15,752,798 $ 24,447,690 $ 7,299,219 $ 17,148,471 B) Corporate Reserve Funds Employee Accident 3,051,287 5,700,397 1,805,132 3,895,265 Benefits 1,737,970 1,707,835-1,707,835 Total Corporate Reserve Funds $ 4,789,257 $ 7,408,232 $ 1,805,132 $ 5,603,100 C) Corporate Reserves Election Expense - 469, ,031 - Insurance - 5,191,037 5,191,037 - Early Retirement 2,846 2,846-2,846 Emergency Plan 113, , ,172 Future Expense 712, , ,890 Total Corporate Reserves $ 828,889 $ 6,459,975 $ 5,660,067 $ 799,908 48

51 City of Burlington Reserve Funds and Reserves As At September 30, 2017 with Comparatives from December 31, LOCAL BOARDS AND PROGRAM SPECIFIC RESERVE FUNDS AND RESERVES A) Program Specific Reserve Funds Uncommitted Balance BALANCE COMMITMENTS UNCOMMITTED As at Dec 31, 2016 BALANCE Economic Development 41,612 41,612-41,612 Discovery Landing Reserve Fund - Waterfront Centre 457, , ,601 Paletta Mansion 401, , ,183 Senior's Centre 483, , ,508 Tyandaga Facility 334, , ,380 LaSalle Park Pavilion 559, , ,863 Burlington Youth Centre - 40,744 40,744 - Sports Fields 74,681 88,300-88,300 Haber Community Centre 244, , ,579 Recreation Centre 338, , ,214 Pools 779, , ,105 Arenas 328, , ,611 Culture 142, ,011 50,000 75,011 Randal Reef - 1,094,155 1,094,155 - Downtown Streetscape 48,083 48,083-48,083 Community Heritage 169, , ,998 Mundialization Committee 179, , ,805 Naval Memorial 38,671 38,671-38,671 LaSalle Marina - 435, ,042 - Policy Initiatives 2,619,541 3,813,193 2,570,991 1,242,203 Culture Initiatives 104, , ,253 Energy Initiatives 14,608 14,608-14,608 Community Investment 100, , ,563 Forestry Reserve Fund 11, , ,000 11,795 Total Program Specific Reserve Funds $ 7,472,647 $ 10,219,877 $ 4,440,931 $ 5,778,946 49

52 City of Burlington Reserve Funds and Reserves As At September 30, 2017 with Comparatives from December 31, 2016 B) Local Boards Reserve Funds Uncommitted Balance BALANCE COMMITMENTS UNCOMMITTED As at Dec 31, 2016 BALANCE Parking District 7,620,023 7,745,156 1,296,095 6,449,061 Downtown BIA 200, , ,343 BEDC Operations 320, , ,989 BEDC Marketing 276, , ,671 Library Board 1,762,289 1,978,579-1,978,579 Tourism Burlington 83,044 83,044-83,044 Museums Board - Joseph Brant General 33,156 33,156-33,156 Museums Board - Joseph Brant Project 152, , ,697 Museums Board - Ireland House General 7,967 7,967-7,967 Museums Board - Ireland House Project 114, , ,816 Museum Board - Joseph Brant Transformation Project 872, , ,512 PAC 61,488 71,766 10,279 61,488 PAC - CPRF 543, , ,241 PAC Donations 7,479 12,758 5,279 7,479 Total Local Boards Reserve Funds $ 12,055,973 $ 12,438,696 $ 1,311,653 $ 11,127,043 C) Program Specific Reserves Crime Prevention 26,810 26,810-26,810 Burlington International Games 63,907 63,907-63,907 Total Program Specific Reserves $ 90,716 $ 90,716 $ - $ 90,716 Total Reserve Funds $ 107,149,612 $ 154,143,930 $ 55,150,389 $ 98,993,541 Total Reserves $ 5,481,922 $ 17,332,473 $ 11,058,016 $ 6,274,458 Total Reserve Funds and Reserves $ 112,631,534 $ 171,476,404 $ 66,208,404 $ 105,267,999 50

53 CITY OF BURLINGTON 2017 BUDGET MONITORING FOR THE PERIOD ENDING SEPTEMBER 30, 2017 Appendix F of F Actuals YTD Variance YTD Services $ % $ % Projected Fav/ Net Approved Projected Year-End Unfav Budget Year-End Surplus / (Deficit) Office of the Mayor 331,441 69% 32,050 9% 478, ,553 15,000 Office of Councillors 713,528 67% 100,423 12% F 1,071, ,692 77,558 Office of Mayor & Council $ 1,044,969 67% $ 132,473 11% $ 1,549,803 $ 1,457,245 $ 92,558 Building Code Permit &Inspection (525,702) 45% (212,513) 29% U (1,169,584) (1,169,584) - Development Review Service 360,696 19% 1,195,627 77% F 1,875, ,436 1,192,488 F Parks & Open Space Design and Development 504,027 71% 27,490 5% 709, ,706 27,500 Facilities & Buildings Design and Construction 533,900 75% 5,031 1% 714, ,783 26,594 Planning Policy Service 788, % (20,036) -3% 682, ,010 (70,110) Design & Build $ 1,661,718 59% $ 995,598 37% $ 2,812,823 $ 1,636,351 $ 1,176,472 Cultural Service 1,034,633 76% 6,946 1% 1,360,223 1,353,057 7,166 Organized Sport Support 2,732,921 70% 136,034 5% F 3,913,738 3,861,409 52,328 Recreation Service 3,524,414 64% 9,236 0% 5,511,733 5,652,721 (140,987) U Leisure Services $ 7,291,968 68% $ 152,217 2% $ 10,785,693 $ 10,867,187 $ (81,494) Council & Citizen Committee Service 1,214,182 80% 63,811 5% 1,523,576 1,505,476 18,100 Service Burlington 341,415 59% 101,070 23% F 579, ,668 84,360 Customer Relations and Citizen Representation $ 1,555,597 74% $ 164,881 10% $ 2,102,604 $ 2,000,144 $ 102,460 Cemetery Service 79, % (40,816) -105% 46,747 74,346 (27,599) Parks and Open Space Maintenance 4,332,417 89% (25,873) -1% 4,846,812 5,014,608 (167,796) U Roadway Maintenance Service 6,030,960 57% 257,358 4% F 10,657,784 10,549, ,914 F Surface Water Drainage Service 675,626 41% 229,902 25% F 1,641,400 1,476, ,193 F Tree Management Service 1,925,339 59% 138,942 7% F 3,269,860 3,344,387 (74,527) Environment & Energy Service 248,500 69% 31,545 11% 361, ,037 33,640 Maintenance $ 13,292,562 64% $ 591,058 $ 20,824,280 $ 20,787,455 $ 36,825 Animal Control Service 381,048 70% 14,042 4% 540, ,183 30,429 Bylaw Enforcement Service 259,862 57% 66,965 55% 453, ,741 68,246 Emergency Management Service 106,535 68% 15,166 3% 156, ,786 5,187 Fire Communications 557,946 56% 26,966 4% 1,004, ,185 15,544 Fire Prevention & Education 718,068 71% 17,745 0% 1,010,300 1,006,500 3,800 Emergency Response Service 17,764,212 68% (2,907) 0% 26,185,004 26,173,046 11,958 Public Safety $ 19,787,671 67% $ 137,977 0% $ 29,351,605 $ 29,216,441 $ 135,164 51

54 CITY OF BURLINGTON 2017 BUDGET MONITORING FOR THE PERIOD ENDING SEPTEMBER 30, 2017 Appendix F of F Actuals YTD 2017 Variance YTD Services $ % $ % Fav/ Unfav Net Approved Budget Projected Year-End Projected Year-End Surplus / (Deficit) Roads & Structure Design & Construction 642,208 44% 294,756-18% F 1,468,229 1,262, ,500 F Parking Service (1,618,625) 218% (31,712) -1% (743,810) (711,360) (32,450) Traffic Operations Management Service 3,520,175 66% 330,152 5% F 5,370,179 5,083, ,476 F Transit Service 7,580,244 72% (314,945) -96% U 10,494,095 10,846,414 (352,319) U Transportation (Network) Planning 244,715 56% 83,799 1% 436, , ,041 F Roads & Transportation $ 10,368,717 61% $ 362,050 2% $ 17,025,370 $ 16,770,122 $ 255,248 Asset Management Service 507,774 72% 26,601 11% 703, ,102 10,000 Internal Audit Service 234,009 71% 16,728 1% 331, ,145 - Communications Service 1,042,302 68% 99,972 10% 1,532,866 1,438,866 94,000 Corporate Management Service 682,789 40% 346,637 13% F 1,710,130 1,326, ,600 F Financial Management Service 2,551,470 80% 75,734-20% 3,208,546 3,160,319 48,227 Fleet Management Service (74,309) 17% (310,825) -79% U (430,272) (120,460) (309,812) U Geographic Information & Mapping 389,806 75% 2,711 0% 517, ,389 - Human Resources Service 1,678,485 66% 52,633 1% 2,541,063 2,505,305 35,758 Information Technology Service 4,625,165 77% 60, % 6,018,367 5,883, ,425 F Corporate Signs 167,766 0% (109,006) - 71,815 (71,815) Corporate Legal Service 1,075,882 70% 86,915 7% 1,543,884 1,467,027 76,857 Internal Support & Admin $ 12,881,142 73% $ 348,450 3% $ 17,676,220 $ 17,274,980 $ 401,240 Total City Services $ 67,884,343 66% $ 2,884,704 $ 102,128,399 $ 100,009,925 $ 2,118,474 Special Partners and Board 10,640,343 75% 0 0% 14,172,624 14,172,624 - Corporate Expenditures 46,212,933 94% (241,321) -1% U 48,909,075 48,987,689 (78,614) Corporate Revenues (164,902,268) 100% 435,124 0% F (165,210,097) (165,779,854) 569,757 F TOTAL (40,164,649) $ 3,078,506 1 (2,609,616) $ 2,609,617 52

55 CITY OF BURLINGTON 2017 BUDGET MONITORING FOR THE PERIOD ENDING SEPTEMBER 30, 2017 Appendix G of F Description 2017 Actuals YTD Variance YTD $ % $ % Fav/ Unfav Net Approved Budget Projected Y-End Projected Y-End Variance By Cost Element Category: Human Resources 77,172, % 2,004, % F 108,406, ,549,003 1,857,856 Operating/Minor Capital Equip. 10,546, % (280,065) -2.6% U 15,178,732 15,922,515 (743,783) Purchased Services 14,715, % 66, % F 21,846,005 22,948,104 (1,102,100) Corp. Expenditures/Provisions 74,752, % 229, % F 87,606,465 88,066,906 (460,441) Internal Charges & Settlements 2,745, % 48, % F 5,173,124 5,063, ,694 TOTAL EXPENDITURES 179,932, % 2,069, % F 238,211, ,549,958 (338,774) Controllable Revenues (29,802,861) 82.7% 1,179, % F (36,036,523) (37,766,388) 1,729,866 General Revenues & Recoveries (190,294,518) 94.1% (170,821) 0.1% U (202,174,661) (203,393,186) 1,218,525 TOTAL REVENUES (220,097,379) 92.4% 1,009, % F (238,211,184) (241,159,574) 2,948,391 NET OPERATING BUDGET 40,164,682-3,078,506 F 1 (2,609,616) 2,609,617 53

56 Page 1 of Report F SUBJECT: Temporary Borrowing By-Law TO: FROM: Committee of the Whole Finance Department Report Number: F Wards Affected: All File Numbers: Date to Committee: November 27, 2017 Date to Council: December 11, 2017 Recommendation: Approve the by-law attached as Appendix A to finance department report F-54-17, to authorize the temporary borrowings of monies from the Royal Bank of Canada to meet the ordinary expenditures of the Corporation for the 2018 fiscal year; and Authorize the Mayor and Clerk to execute the Security Agreement, subject to the satisfaction of the City Solicitor. Purpose: An Engaging City Good Governance Background and Discussion: At various times during the year, it may be necessary to arrange short-term loans from the City s banker in order to meet the current ordinary expenditures of the municipality. There are times in the year when cash flow is at the lowest point and operating expenditures have to be covered during the period just prior to the collection of the property taxes. In previous years, we have borrowed from our Reserve Funds during this time and will continue to do so as necessary in

57 Page 2 of Report F The legal authority to borrow short-term funds is obtained pursuant to a By-law prepared under Section 407 of the Municipal Act (S.O. 2001). A copy of the proposed By-law is attached as Appendix A. It is also a requirement of the Royal Bank of Canada that a security agreement is executed by the Mayor and City Clerk and copies of both documents be forwarded to the Bank. A copy of the security agreement is attached as Appendix B. Financial Matters: Borrowing arrangements with the Royal Bank provide us with a $5,000,000 line of credit at the prime-lending rate 3/4%. At the current time, prime stands at 3.20%. It has not been necessary to access this credit line during 2017 or prior years nor is it anticipated to be needed for The By-law is prepared in order to meet the requirements of the bank. Total Financial Impact Not applicable Source of Funding Not applicable Other Resource Impacts Not applicable Conclusion: The attached by-law and security agreement should be presented to Council to authorize the temporary borrowings of monies from the Royal Bank of Canada as needed. Respectfully submitted, Nicole Tewkesbury Coordinator of Accounting Services ext

58 Page 3 of Report F Appendices: A. Borrowing By-Law B. Security Agreement Notifications: Royal Bank of Canada - Chris Hiebert chris.hiebert@rbc.com Report Approval: All reports are reviewed and/or approved by Department Director, Director of Finance and Director of Legal. Final approval is by the City Manager. 56

59 The Corporation of the City of Burlington By law XX-2017 F Appendix A City of Burlington By law XX-2017 A by law to authorize the temporary borrowings of monies from the Royal Bank of Canada File: (F-54-17) Whereas pursuant to Section 407(1) of the Municipal Act, 2001 S.O. 2001, c.25, as amended, a municipality may authorize temporary borrowing; and Whereas the Council of the Corporation of the city of Burlington (the Corporation ) deems it necessary to borrow the sum of Five Million dollars ($5,000,000) to meet, until taxes are collected and other revenues are received, current expenditures of the Corporation for the year; Now therefore the Council of the Corporation of the City of Burlington hereby enacts as follows: 1. Any two of the following: Director of Finance; Mayor; City Manager; City Clerk; are hereby authorized to borrow on behalf of the Corporation from THE ROYAK BANK OF CANADA (the Bank ) from time to time by way of promissory note or bankers acceptance a sum or sums not exceeding at any one time Five Million dollars ($5,000,000) to meet, until taxes are collected and other revenues received, current expenditures of the Corporation for the year Any two of the officers listed in paragraph 1 above are hereby authorized to sign, make or draw on behalf of the Corporation and to furnish to the Bank from time to time promissory notes or bankers acceptances for the sum or sums so borrowed with interest or any other charges at a rate not exceeding the Prime Commercial Lending Rate, which the Bank may determine form time to time, minus ¾%. 3. The Director of Finance is hereby authorized and directed to furnish to the Bank at the time of each borrowing and at such other times as the Bank may form time to time request, a statement showing the nature and amount of the estimated revenues of the Corporation as set forth in the estimates adopted for the preceding year and also showing the total of any amount borrowed in the current year and in any preceding year that have not been repaid. 57 Page 1 of 2

60 The Corporation of the City of Burlington By law XX-2017 F Appendix A 4. All sums borrowed from the Bank and any interest thereon and any other charges in connection therewith shall be a charge upon the whole of revenues of the Corporation for the current year and for any preceding years as and when such revenues are received and that the Director of Finance is hereby authorized to sign on behalf of the Corporation and to furnish to the Bank an Agreement or Agreements of the Corporation charging the said revenues of the Corporation with payment of all sums borrowed from the Bank and any interest thereon and any charges in connection therewith. 5. The Director of Finance is hereby authorized and directed to apply in payment of all sums borrowed from the bank, and any interest thereon and any charges in connection therewith, all of the moneys hereafter collected or received on account or realized in respect of the taxes levied for the current year and for any preceding years and all of the moneys collected or received from any other source Enacted and passed this 11 December 2017 Mayor Rick Goldring Clerk Angela Morgan Online version of this document does not contain signatures. Please contact City Clerk to obtain a copy of the signed original. 58 Page 2 of 2

61 F of Appendix B Schedule B Security Agreement - Municipalities and School Boards To: The Royal Bank of Canada (the Bank) WHEREAS by a By-law or Resolution passed by the Council of the Corporation of the City of Burlington on the 11th day of December 2017, authority was given to any two of the following: Director of Finance; Mayor; City Manager; City Clerk; to borrow from the Bank the sum or sums therein mentioned and this Agreement was authorized. AND WHEREAS the Corporation may desire to borrow the said sum or sums from the Bank. NOW IT IS AGREED by the Corporation that in consideration of the Bank advancing or providing the said sum or sums to the Corporation that all the revenues of the Corporation of whatever nature and kind are hereby charged to and in favour of the Bank, as security for payment of the moneys so advanced or provided by the Bank and any interest thereon and any other charges in connection therewith and the Bank shall have a lien upon all such revenues until the charge hereby and by the said By-law or Resolution created is satisfied. The Corporation represents and warrants that the whole or any part or parts of the revenues of the Corporation are not subject to any prior charge, except as disclosed to the Bank in writing. IN WITNESS WHEREOF THE Corporation has caused this agreement to be executed by its proper officers as required by law this 11th day of December, WITNESS ) By: ) Mayor Rick Goldring ) ) ) ) Angela Morgan, City Clerk 59

62 Page 1 of Report CL SUBJECT: Renewal of Ombudsman agreement TO: FROM: Committee of the Whole Clerks Department Report Number: CL Wards Affected: All File Numbers: Date to Committee: November 27, 2017 Date to Council: December 11, 2017 Recommendation: Authorize the City Solicitor to negotiate a renewal agreement with ADR Chambers for the provision of Ombudsman services to the City of Burlington for an additional term as set out in clerks department report CL-21-17; and Direct the City Clerk to prepare the necessary by-law to re-appoint ADR Chambers as Ombudsman for the City of Burlington as set out in clerks department report CL Purpose: An Engaging City Good Governance Background and Discussion: Under sections of the Municipal Act, 2001 (the Municipal Act), an Ombudsman may be appointed to investigate any decision or recommendation made or act done or omitted in the course of the administration of the municipality, and a municipality may extend the Ombudsman s jurisdiction to include municipally-controlled corporations. Accordingly, ADR Chambers was appointed as the Ombudsman for the City of Burlington through Legal report L and By-Law number , for a two-year period to conclude December 31,

63 Page 2 of Report CL ADR Chambers has acted as the City of Burlington s Ombudsman since January 1, Upon receipt of a request, the Ombudsman may investigate any decision or recommendation made or act done or omitted in the course of the administration of the municipality, following the exhaustion of the City s own formal and informal processes for review and complaint. ADR Chambers also provides Ombudsman services for the Town of Milton, Town of Oakville and the Region of Halton. ADR Chambers submitted a report to Council in April 2017 summarizing its activities for the calendar year A further report summarizing its activities for the calendar year 2017 is expected in the first quarter of the coming year. Financial Matters: ADR Chambers is paid a monthly retainer fee, the annual cost of which is $12, If ADR Chambers commences an investigation, additional fees for service may be incurred. Total Financial Impact Other than the payment of the monthly administrative support fee, the financial implications of this recommendation are unknown at this time as such implications will be dependent upon the number of requests for investigations that be may be received. Conclusion: Staff are satisfied with the performance of ADR Chambers and are recommending that the appointment of ADR Chambers as the City of Burlington s ombudsman be extended for an additional two-year term, to commence January 1, 2018 and conclude December 31, Respectfully submitted, Angela Morgan City Clerk ex

64 Page 3 of Report CL Appendices: A. By-law XX-2017 extending the appointment of ADR Chambers as the City of Burlington s Ombudsman for an additional two-year term. Report Approval: All reports are reviewed and/or approved by Department Director, Director of Finance and Director of Legal. Final approval is by the City Manager. 62

65 Appendix A to CL THE CORPORATION OF THE CITY OF BURLINGTON BY-LAW NUMBER xx-2017 A by-law to appoint ADR Chambers Inc. as Ombudsman for the City of Burlington File: (CL-21-17) Whereas pursuant to subsection (1), of the Municipal Act, 2001, S.O. 2001, c. 25, a municipality is authorized to appoint an Ombudsman who reports to council and whose function is to investigate in an independent manner any decision or recommendation made or act done or omitted in the course of the administration of the municipality, its local boards and such municipally-controlled corporations as the municipality may specify and affecting any person or body of persons in his, her or its personal capacity; and Whereas sections 8, 9 and 10 of the Municipal Act, 2001, S.O. 2001, c. 25, authorize the City of Burlington to pass by-laws necessary or desirable for municipal purposes, and in particular paragraph 2 of subsection 10(2) authorizes by-laws respecting the accountability and transparency of the municipality and its operations; and Whereas Council desires to appoint ADR Chambers Inc. as Ombudsman for the City of Burlington and its local boards. Now therefore the Council of the Corporation of the City of Burlington hereby enacts as follows: 1. Appoint ADR Chambers Inc. as Ombudsman for the City of Burlington and its local boards for a two-year term commencing January 1, 2017 and ending December 31, When carrying out its duties under the Municipal Act, 2001, S.O. 2001, c. 25 and any amendments thereto (the Act ), the Ombudsman has the general powers and duties and is subject to the limitations set out in sections to of the Act. 3. Repeal By-law Enacted and passed this 11 th day of December, Mayor Rick Goldring Clerk Angela Morgan 63

66 Page 1 of Report CL SUBJECT: Framework for managing twin city relationships TO: FROM: Committee of the Whole Clerks Department Report Number: CL Wards Affected: All File Numbers: Date to Committee: November 27, 2017 Date to Council: December 11, 2017 Recommendation: Amend the City of Burlington framework for managing twin city relationships approved as clerks department report CL to permit the celebration of twinning anniversaries every five years. Purpose: An Engaging City Good Governance Community Building through Arts and Culture via Community Activities Background and Discussion: In February 2007 Council approved clerks department report CL-01-07, a framework for managing twin city relationships in terms of gifts, official visits and associated events. In particular, the approved framework outlines that the City of Burlington will celebrate the anniversary of our twin city relationships once every five years, including the 25th year. After the 25th year, twinning anniversary celebrations are to occur every 10 years. In June 2017, the Mundialization Committee submitted their annual report and work plan to the Committee of the Whole. In appendix A to clerks department report CL-08-17, the Mundialization Committee put forward a recommendation for a modification to the city s twinning protocol to permit the continuation of anniversary celebrations in five year intervals. The Mundialization Committee members feel strongly that not having 64

67 Page 2 of Report CL official contact for 10 years will jeopardize the level of interest and the commitment of the twinning relationship. In response to the Mundialization Committee s suggestion, Council at its meeting held in July 2017 approved the following staff direction SD-7-17: Direct the City Clerk to investigate the Mundialization Committee's proposal to amend the framework for managing twin city relationships outlined in clerks department report CL-01-07, approved by council on February 5, 2007 to permit the celebration of twinning anniversaries every five years beyond the 25th year. Following council s direction, clerks department staff contacted the Mayor of Itabashi to gauge the city s interest in continuing anniversary celebrations in five year intervals. Mayor Takeshi Sakamoto, on behalf of the City of Itabashi, relayed that they will continue to commemorate the twinning relationship every five years and look forward to Burlington s cooperation in continuing to work together to strengthen the twinning relationship. Burlington and Itabashi are currently in their 28 th year of twinning and the relationship continues to be active and vibrant. (This matter is less imminent for the relationship with Apeldoorn, the Netherlands as Burlington is celebrating 15 years of twinning with Apeldoorn in 2020.) Through the dedication of the citizens on the Burlington Mundialization committee the following provides a sampling of the committed twinning relationship between Burlington and Itabashi: This past year, the annual Sakura Festival held at the Art Gallery of Burlington attracted more than 300 people to the two hour event showcasing Japanese culture through cultural displays of dance, fashion and music. In partnership with the Burlington Public Library, a Japanese cultural presentation is offered approximately every eight weeks to Burlington residents. This year marks the 11 th annual elementary student art exchange where art from Burlington and Itabashi students is displayed in art galleries in the respective cities. In 2017, the first pen pal exchange between high school students will commence. These exchanges have allowed the cities to foster cultural understanding and supports Burlington s status as a world community advancing the ideals of the United Nations to promote mutual trust and appreciation among people of different nations. Celebrating twinning relationships in five year intervals provides a vital opportunity for leaders in both cities to strengthen their bonds and determine new ways to build upon past achievements. Both long standing and new members of the Mundialization Committee look forward to planning for a formal celebration of the 30th twinning anniversary with Itabashi, Japan in

68 Page 3 of Report CL Financial Matters: Costs associated with ongoing Mundialization Committee programs and activities for both anniversary and non-anniversary years are supported within the approved Mundialization Committee budget. Costs associated with official corporate Mundialization programs and activities for both anniversary and non anniversary years (receptions, gifts and travel) are supported within the Corporate Mundialization budget. An ongoing reserve fund is maintained to support corporate Mundialization activities, including anniversary celebrations and other council-approved initiatives related to the city s twinning relationships. Connections: The Mundialization Committee actively works in cooperation with a number of community partners (Burlington Public Library, Royal Canadian Legion, Art Gallery of Burlington, Tourism Burlington, Halton District School Board, Halton Catholic District School board, teachers, students and cultural communities) The report recommendation is consistent with the intent of By-law , a bylaw to declare Burlington a World Community and Burlington s Strategic Plan direction to reach out to new and diverse communities to expand the cultural fabric of Burlington. Public Engagement Matters: The Burlington Mundialization Committee takes advantage of all city media channels to provide transparent communication to Burlington and Halton residents about the activities carried out by the committee during anniversary and non-anniversary years and to encourage participation by Burlington and Halton residents. 66

69 Page 4 of Report CL Conclusion: In order to build upon the strong relationships between Burlington and its twin cities of Itabashi, Japan and Apeldoorn, the Netherlands it is recommended that twinning celebrations continue to be celebrated in five year intervals. Respectfully submitted, Lisa Palermo Committee Clerk , ext Appendices: A. Letter from Mayor of Itabashi, Japan Notifications: Mayor Takeshi Sakamoto, Itabashi, Japan Mayor John Berends, Apeldoorn, the Netherlands Report Approval: All reports are reviewed and/or approved by Department Director, Director of Finance and Director of Legal. Final approval is by the City Manager. 67

70 68 Appendix A to CL-20-17

71 Page 1 of Report F SUBJECT: Investment Policy updates TO: FROM: Committee of the Whole Finance Department Report Number: F Wards Affected: not applicable File Numbers: Date to Committee: November 27, 2017 Date to Council: December 11, 2017 Recommendation: Approve the updated Investment Policy as outlined in Appendix A to finance department report F Purpose: An Engaging City Good Governance Background and Discussion: The City s Investment Policy is reviewed annually to determine if changes are needed. The last update was approved by Council in report F on July 4, The current investment policy was updated in order to provide an enhanced platform to sustain the level of investment income while following legislation. The update was to increase the investment level allowed for specified municipal bonds. The nature of the investment market is associated with world events such as a liquidity crisis, war, terrorism and world tragedies, which make the market very volatile. As a result of these continuing economic conditions the Bank of Canada has been keeping interest rates low in order to stimulate the economy. With this trend anticipated to continue for another 2-3 years, additional refinement to the investment policy is considered necessary in order to maximize the City s return on investment potential. An 69

72 Page 2 of Report F annual review of the investment policy is considered essential in order to adjust the policy to reflect the current economic environment. The current investment policy limits the amount of short term investments invested with credit unions to $20 million per institution for a period of 90 days. Credit unions typically pay a slightly higher rate than banks on short term investments. Therefore it is recommended that an amount equal to the quarterly requisition amount paid to the Region and School Boards be allowed to be invested in Credit Unions for a term of up to 180 days. This provides the potential to earn a slightly higher rate of interest while providing the flexibility to maintain liquidity to meet the City s obligations. Given the anticipated ongoing conditions in the market, an additional change is recommended to the City s Investment Policy in keeping with the following objectives: Adherence to legislative and statutory requirements Preservation of principal Maintenance of liquidity Rating the risk of securities and institutions Competitive return on investments Safeguarding of investments certificates and detail record keeping Regular review of the effectiveness of the policy in meeting the above objectives The change being recommended not only addresses the market place today but also provides for future market opportunities. Recommendation To increase the maximum value of short term investments with Credit Unions to an amount equivalent to the expected requisition amount to be paid out to the Region and School Boards for taxes collected on their behalf, and also, to change the investment period from a maximum of 90 days to a maximum of 180 days. Regulation 438/97 section 2 (1) (iv) permits municipalities to invest with credit unions. The recommendation complies with legislative and statutory requirements and supports all objectives as set out in the current Investment Policy. Financial Matters: Since the City s Investment Policy was first established in 1987, the City s investment portfolio has continued to grow. The following chart, showing balances as at Sept of each year, illustrates the growth and change in composition of the City s portfolio: 70

73 Page 3 of Report F Composition of Investment Portfolio 305 $ M i l l i o n s Short Term Long Term Total The interest income generated by the City s investments is an important component of the City s operating revenues. Over the last two years the City s Interest earned on investments including capital gains has been $10 million. Prudent Investor Status Since 2016 the province has been undertaking a review and revision of the Municipal Act, One of the proposals arising from this review is to allow eligible municipalities to adopt prudent investor status by by-law which would allow municipalities to invest in equities and potentially increase investment income. The prudent investor standard includes a duty to obtain advice that a prudent investor would obtain under comparable circumstances. Although this section of the act has not yet been passed into law, proposed regulations have been released for comment. The proposed regulations would require the municipality to establish an investment board which would be a municipal service board and would be responsible for control and management of the city s investments. It cannot include members of council or staff with the exception of the City Treasurer. 71

74 Page 4 of Report F The City of Toronto was granted this status effective Jan 1, As a result it has recommended to council to establish an investment board with a portfolio of $5 billion with an expected interim cost of $557,500. It is important to consider that if a municipality opts in by by-law, it cannot opt out unless a future regulation is passed permitting it to invest again in accordance with the current prescribed list of eligible investments. The prudent investor standard continues to apply to a municipality whether or not a municipality continues to satisfy the criteria. The eligibility criteria currently proposed are: Individual municipalities that have a net financial assets balance of more than $50 million can opt in by by-law. Municipalities with an aggregate investment balance of $100 million can opt in by by-law. At this time, the option to pass a by-law to establish prudent investor status is not recommended due to the cost and resources required to establish an investment board for a relatively small portfolio. Staff continue to monitor developments related to the prudent investor standard and consult with our neighbouring municipalities. As the regulations governing this proposed change to the Municipal Act, 2001 become finalized, staff will report back in future annual investment policy reviews. Conclusion: Staff believe the recommended change to the investment policy will provide an enhanced platform to sustain the level of investment income, while maintaining appropriate control over the investment portfolio, preserving principal and maintaining liquidity. Respectfully submitted, Sandy O Reilly Controller and Manager of Financial Services Ext 7648 Appendices: A. Investment Policy 72

75 Page 5 of Report F Report Approval: All reports are reviewed and/or approved by Department Director, Director of Finance and Director of Legal. Final approval is by the City Manager. 73

76 Appendix A to F Corporate Policy Finance-Accounting Investment Policy Approved by Council on: 11/28/2012 Report Number: F Effective: 11/28/2012 Reviewed on: 05/19/2016, 11/02/2017 Amended: 12/11/2017 Next Review: 11/01/2018 Note: Report F for amendments This policy formalizes the Investment Policy and prescribes the limits for investing. Policy Statement: This policy has been designed to provide an effective framework for optimal utilization of the cash resources of the City of Burlington within the statutory limitations and the basic need to protect and preserve capital while maintaining solvency and liquidity to meet on-going fiscal requirements. Scope: This policy applies to the Coordinator of Financial Reporting. Objectives: Basic objectives of the investment policy shall, in order of priority, be as follows: Adherence to legislative and statutory requirements Preservation of principal Maintenance of liquidity Rating the risk of securities and institutions 74

77 Corporate Policy Competitive return on investments Safeguarding of investments certificates and detail record keeping Regular review of the effectiveness of the policy in meeting the above objectives Adherence to Legislative and Statutory Requirements All investments are made in accordance to the Ontario Municipal Act 2001 S Eligible investments are prescribed by the Ontario Regulation 438/97 and all investments must be invested in Canadian dollars. Preservation of Capital Preservation of capital is a key requirement for managing public funds. This objective can be achieved by diversification of the portfolio and by maintaining a substantial portion of the portfolio in risk-free investments. Maintenance of Liquidity Portfolio is structured to meet cash flow requirements for regular disbursement and other scheduled obligations. This is accomplished by matching the maturation of securities with predicted cash demands. To account for unpredictable cash demands, the portfolio will be largely composed of securities with active secondary or resale markets. Part of the portfolio may be placed in local government pools that offer liquidity for short-run funds. Rating the Risk of Securities and Institutions Credit rating criteria are established by the Canadian Bond Rating Service (CBRS). Bonds are rated by agencies such as: Dominion Bond Rating Service (DBRS), Fitch Ratings, Moody s Investors Service Inc., and Standard & Poor s, as follow: AAA or Aaa AA or Aa A Highest Credit Quality Very Good Credit Quality Good Credit Quality Money Market Instruments are rated by agencies such as: Dominion Bond Rating Service (DBRS), Fitch Ratings, Moody s Investors Service Inc., and Standard & Poor s, as follow: R1 High or F1 R1 Middle R1 Low Highest Credit Quality Superior Credit Quality Satisfactory Credit Quality Competitive Return on Investments Page 2 of 9 Investment Policy 75

78 Corporate Policy Obtaining competitive return on investments commensurate with constraints as outlined in the provincial regulations. The City will monitor trends in macro-economics which include interest rates and inflation as affected through the political arena & foreign developments and perceptions. Restrictions in exposure to credit, sector or term risk will ensure diversification and safety, and will provide opportunities to enhance investments returns of the City s portfolio through prudent and timely adjustments to portfolio mix. Safeguarding of Investment Certificates and Detail Record Keeping The Director of Finance or delegate shall be authorized to enter into arrangements with banks, investments dealers and brokers, and other financial institutions for the purchase, sale, redemption and safekeeping of securities and to execute and sign documents on behalf of the City of Burlington and perform all other related acts in the day to day operation of the investment program. Investments are done through custodian banking to ensure safekeeping of investments certificates. Detailed records shall be kept and regular investment reports prepared. Regular review of the effectiveness of the policy in meeting the above objectives. Relevant Acts and Regulation Amendments will also be reviewed to ensure the validity and accuracy of this policy. Definitions: For the purpose of this policy, unless otherwise stated, the following definitions shall apply: Term Money Market Instruments Definition Money Market Instruments are short-term debt securities, such as bankers acceptances, bearer deposit notes, discount deposit notes and term deposit notes, with maturity of one year or less. These instruments are liquid, safe investments with a low interest rate yields. Page 3 of 9 Banks Acceptance (BA s) Investment Policy 76 These instruments are essentially a commercial bank draft drawn by a borrower for payment on a specified date and accepted by the bank that will

79 Corporate Policy Term Definition assumes risks. BA s are issued in discount form, usually in multiple denominations of $100,000 and are widely traded and extremely liquid. Bearer Deposit Notes (BDN s) These instruments are obligations that are secured by the general credit of the issuing bank. BDN s are sold at a discount to mature at par. Minimum amount for investment is $100,000. Discount Deposit Notes The bank is responsible for making payment of a note at maturity, with interest payment expressed as a percentage of the note's face value. Term Deposit Note Term Deposit Notes are funds deposited in a savings account of the bank to earn interest. The terms of the note impose a financial penalty if funds are withdrawn before a specified date. Principles: QUALITY, TERMS, AND HOLDING RESTRICTIONS ON INVESTMENTS References: The following are quality, terms, and holding restrictions on City of Burlington investments. The standards set have met or exceeded the requirements as prescribed by O. Reg. 438/97 and amendment O. Reg. 655/05, O. Reg. 292/09, and O. Reg. 52/11. Page 4 of 9 Investment Policy 77

80 Corporate Policy Bonds Bonds are financial instruments issued by federal, provincial and municipal governments, and banks with terms over a year, with fixed interest rates and specified end dates. Bonds are guaranteed by the institutions that issued them. Maple bonds are Canadian dollar-denominated bonds issued by non-canadian entities in the Canadian market. There shall be no quality, term and holding restrictions on securities offered by the Government of Canada, Province of Ontario, and guaranteed agencies. There shall be no quality and term restrictions on securities issued by provinces, territories, and guaranteed agencies. Investment is limited to $20 million per province or territory, except for the Province of Ontario. There shall be no quality, term and holding restrictions when the City is buying back Region of Halton debentures issued to finance City of Burlington works or purchased on behalf of the Cemetery Care and Maintenance Trust Funds. Investment in Municipal bonds with a minimum credit rating of A is restricted to maximum term of 30 years, and $10 million per municipality. Except as noted in the table below. Investment in School Board bonds with a minimum credit rating of A is restricted to a maximum term of 10 years, and $5 million in aggregate. Investment in financial institution (Schedule I & Schedule II Bank) bonds with a minimum credit rating of AA or Aa is restricted to maximum term of 10 years, and $10 million per institution. Investment in foreign country guaranteed maple bonds with a minimum credit rating of AAA is restricted to a maximum term of 5 years, $5 million per country, and $15 million in aggregate. Money Market Instruments Money Market Instruments are short-term debt securities, such as bankers acceptances, bearer deposit notes, discount deposit notes and term deposit notes, with maturity of 365 days or less. The issuing institutions guarantee their money market instruments. Yields are usually lower than bonds in return for the liquidity that these instruments provide. Page 5 of 9 Investment Policy 78

81 Corporate Policy Investment in Schedule I banks with a minimum credit rating of R1 Middle or F1 is restricted to $60 million per institution. Schedule I banks are widely held "eligible Canadian financial institutions" authorized by the Ministry of Finance to conduct banking in Canada as it is defined in the federal Bank Act. Investment in Schedule II banks with a minimum credit rating of R1 Middle or F1 is restricted to $25 million per institution. Schedule II banks are closely held "eligible financial institutions," either Canadian or foreign, authorized to conduct banking in Canada under the federal Bank Act. Most of these banks are subsidiaries of non-canadian financial institutions. Investment in Credit Unions guaranteed by the provinces is restricted to short term investments maturing in 180 days or less, for a total equal to the amount of requisitions paid quarterly to the Region and school boards for taxes collected on their behalf and $60 million in aggregate. Credit unions are financial institutions formed by an organized group with a common bond. Members pool their assets to provide loans and other financial services to each other and others. POLICY MAINTENANCE The Director of Finance shall develop and maintain up-to-date procedures that provide for effective control and management of investments with sufficient assurance that the City's investments are properly managed and adequately protected. All cash management transactions shall be properly recorded and interest earnings distributed annually to the various funds, as the case may be, in accordance with City by-laws, policies, generally accepted accounting principles, and Canadian public sector accounting standards. Periodic audits shall be performed to determine whether or not the investments guidelines provided herein are being followed and to evaluate the adequacy of internal controls. The Director of Finance communicates to the custodian, in writing, all persons permitted to enter investment transactions on behalf of the City of Burlington and any subsequent changes. This also includes instruction as to who may have access to the on-line system for executing trades and reporting on investment activities, RBC Dexia. Page 6 of 9 Investment Policy 79

82 Corporate Policy Provision is made to ensure insurance coverage at all times to protect against potential losses due to misappropriation, theft, or other fraudulent acts by employees through the Comprehensive Crime Policy in the amount of $1,000,000, with no deductibles. REPORTING REQUIREMENTS As outlined in the Ontario Regulation 438/97, S. 8, the Director of Finance will provide investment reports to Council each year (as part of the Quarterly Financial Status report). These investment reports shall contain: (a) A statement about the performance of the portfolio of investments of the City during the period covered by the report; (b) A description of the estimated proportion of the total investments of the City that are invested in its own long-term and short-term securities to the total investment of the City and a description of the change, if any, in that estimated proportion since the previous report; (c) A statement by the Director of Finance as to whether or not, in his/her opinion, all investments are consistent with the investment policies and goals adopted by the City; (d) Such other information, and/or detail records of transactions that Council may require or that, in the opinion of the Director of Finance, should be included. If an investment made by the City is, in the opinion of the Director of Finance, not consistent with the investment policies and goals adopted by the City, the Director of Finance shall report the inconsistency to Council within 30 days after becoming aware of it. Bonds Summary of Investment Restrictions Government of Canada, Province of Ontario, and guaranteed agencies Other Provinces & Territories & guaranteed Minimum Rating Maximum Term Maximum Holding N/A N/A No restriction N/A N/A $20 million per province, territory, or agency Page 7 of 9 Investment Policy 80

83 agencies Corporate Policy Region of Halton N/A N/A Municipalities (other than those listed below) Size of debenture issued on behalf of the City A 30 years $10 million per municipality Municipalities A 30 years $20 million for: City of Toronto Region of York Region of Peel City of Hamilton City of Ottawa School Boards A 10 years $5 million in aggregate Schedule I & Schedule II Banks Maple Bonds guaranteed by foreign countries AA or Aa 10 years $10 million per institution AAA 5 years $ 5 million per country $15 million in aggregate Money Market Instruments Schedule I Bank Schedule II Bank Minimum Rating R1 Middle or F1 R1 Middle or F1 Maximum Term Maximum Holding 365 days $60 million per institution 365 days $25 million per institution Credit Unions guaranteed by provinces N/A 180 days $60 million in aggregate/ Amount up to the value of the requisitions to be paid to the Region and school boards for taxes collected on their behalf. Roles: Accountable: Controller & Manager of Financial Services is responsible for the review of this policy and adherence to its guidelines. Page 8 of 9 Investment Policy 81

84 Corporate Policy Responsible: Coordinator of Financial Reporting is responsible for the management of the policy. Page 9 of 9 Investment Policy 82

85 Page 1 of Report HR SUBJECT: Financial impacts of Bill 148 TO: FROM: Committee of the Whole Human Resources Department Report Number: HR Wards Affected: All File Numbers: Date to Committee: November 27, 2017 Date to Council: December 11, 2017 Recommendation: Receive and file human resources department report HR regarding financial impacts of Bill 148 Fair Workplaces, Better Jobs Act, 2017 and becoming a living wage employer. Purpose: A City that Grows Promoting Economic Growth An Engaging City Good Governance Background and Discussion: After a summer of consultation Bill Fair Workplaces Better Job Act, 2017 passed second reading in the Ontario legislature and the provincial government has expressed their strong commitment to its passing before year end. The following provisions have been identified as having a financial impact to the City s operating budget: 83

86 Page 2 of Report HR Minimum Wage Equal Pay Description Increased from $11.60/hour to $14.00/hour Increased from $14/hour to $15/hour No employee may be paid less than what is paid to full-time employees of the same employer who performs the same job. The rule would apply to part-time, casual, temporary and seasonal employees. Vacation Pay Vacation entitlement would increase to 3 weeks vacation time and 6% vacation pay after 5 years of service with the City. Public Holiday Pay A new formula has been developed to calculate public holiday pay. Effective Date January 1, 2018 January 1,2019 Financial Impact $245,000 $97,000 April 1, 2018 $360,000 1 January 1, 2018 January 1, 2018 $45,000 $100,000 On Call Pay Personal Emergency Leave The new formula will impact parttime/temporary employees and is calculated by taking the earnings from the previous pay period and dividing these by the number of days the employee worked in that pay period. The City will be required to pay at least 3 hours pay for employees who are on-call and who are either not called in to work or who are called in but work less than 3 hours. Currently employees are entitled 10 unpaid emergency leave days. This change requires that 2 of the days be paid leave. January 1, 2018 $240,000 $320,000 Total $1,407,000 1 Note: The Ontario Government announced on October 18 th that it would be conducting consultations on a range of key exemptions from the bill. This cost may decrease if for example, exemptions to employee groups such as supervisors and managers are included. 84

87 Page 3 of Report HR Within Bill 148 there are specific changes that may be deferred if a collective agreement is in force on January 1, The articles within the agreement will prevail until the earlier of the expiry of the agreement or January 1, This has provided the opportunity to defer some of the costs of Bill 148 into 2019 and Broken down by calendar year, it is estimated that Bill 148 will impact the City s operating budget as follows: 2018 Budget Impact $1,027, Budget Impact $170, Budget Impact $210,000 $1,000,000 has been included in the 2018 operating budget and additional funds will be included in subsequent operating budgets as required. A Living Wage Financial Impact: At the June 26, 2017 Committee of the Whole meeting, two delegations presented with the purpose of requesting that the City become certified as a living wage employer. As a result of the two delegations, the following staff direction was approved at Council on July 10, 2017: Direct the Director of Human Resources to do an analysis of our current wage structure to determine whether or not the City of Burlington is currently a fair wage employer and if not, quantify the required investment that would close the gap relating to fair wages for full time and part time staff, and select contract workers specifically cleaning and security staff. In Halton, a living wage is calculated to be $17.95 per hour based on a 37.5 hour workweek. A living wage certification can be obtained by a three level implementation process as follows: Supporter: All full-time employees are paid a living wage and a commitment to begin raising the pay of all part-time employees to a living wage. Leader: All full-time and part-time employees are paid a living wage and a commitment to including living wage requirement for externally contracted services that provide service on a regular basis. Champion: All full-time, part-time and externally contracted staff that provide service on a regular basis are paid a living wage (or the third party contractor has indicated their intent to re-contract at the living wage). 85

88 Page 4 of Report HR Human Resources have conducted an analysis to determine: 1) If the City is a living wage employer, and if not; 2) Determining the financial impact of becoming a living wage employer. The following financial impact has been determined at this time: Financial Impact (after Bill 148 $15 Minimum Wage increase in 2019) Full-time Employees $3,500 Part-time/Temporary Employees $1,130,956 Contracted Services Could not be determined at this time The costs determined above are the difference between the minimum wage of $15/hour and a living wage based on a 35/40 hour work week. Financial Matters: As provided above. Total Financial Impact As provided above. Source of Funding The 2018 costs for Bill 148 have been included in the proposed 2018 budget. The cost to become a Living Wage employer has not been included in the 2018 budget at this time. Conclusion: The financial impact of Bill 148, Fair Workplaces and Better Jobs Act, 2017 has been provided above. In addition to the financial impacts there are several policy and process changes to be implemented in order to be in compliance. This will take considerable staff time and resources to accomplish. The cost to become a Living Wage Employer has also been outlined in this report in response to staff direction SD

89 Page 5 of Report HR Respectfully submitted, Laura Boyd Director of Human Resources ext Report Approval: All reports are reviewed and/or approved by Department Director, Director of Finance and Director of Legal. Final approval is by the City Manager. 87

90 Page 1 of Report IT SUBJECT: Network Services Contract TO: FROM: Committee of the Whole Information Technology Services Report Number: IT Wards Affected: All File Numbers: Date to Committee: November 27, 2017 Date to Council: December 11, 2017 Recommendation: Authorize the Manager of Procurement Services to sign a 5-year agreement, with the option to renew for an additional 5 years, with Cogeco Connexion Incorporated, 970 Syscon Road Burlington, Ontario L7L 5S2, for the delivery of fibre optic data services, subject to the satisfaction of the City Solicitor. Purpose: The agreement is to provide fibre optic data services for inter-building connectivity (corporate Wide Area Network), Internet services, expanded public Wi-Fi, staff Wi-Fi and trunk radio communications. These services are required to maintain and enhance critical infrastructure that supports services used by the city, its partners and the public. The corporate network supports corporate business operations, public service delivery, emergency services, facility building automation (HVAC) and security systems. The network is the backbone for the information flow that supports city operations providing access to software and data required by City staff on a daily basis. These services also directly enable the city s on-line service delivery and in-person amenities such as public Wi-Fi at city locations. 88

91 Page 2 of Report IT Background and Discussion: In 2008, Cogeco became the provider of all the city s fibre services through their acquisition of Fiberwired (Report F-27/08). In October 2012, Council approved the recommendation to single-source Cogeco for City fibre optic network services and free public Wi-Fi in City facilities for a 5-year term (Report IT-01-12). The city s current 5- year contract with Cogeco expires on May 1, Procurement By-law allows contracts to be further extended if circumstances warrant it, reference Section The City of Burlington has 43 facilities spread across the community that are interconnected. Of these, 37 are connected to a fibre optic network that is owned and managed by Cogeco. Staff require the network for computer access and land-line phone services. Internet services are vital to delivering on-line public services and providing staff access to a growing number of cloud-based applications. Public Wi-Fi is provided in many facilities and there are plans to implement staff Wi-Fi to support workspace optimization and staff mobility. Current services also provide high availability (redundant) connections for Fire 911 Dispatch and connectivity to the city s disaster recovery site to support business continuity. A connection to the Region of Halton provides access to the city s financial system (SAP) and the Burlington Public Library is connected for shared telephone services. The Burlington Performing Arts Centre, Tourism Burlington and Burlington Economic Development Corporation are all connected to the corporate fibre network to access shared services. Transportation services is exploring opportunities to leverage this fibre network to provide more advanced traffic management capabilities. It is critical for the city s network to evolve to provide the performance and reliability needed to support business services that increasingly rely on it. The number and types of devices connected and the types of services that are delivered by the network continue to grow. The rising use of video to deliver on-demand messaging and training content as well as real-time streaming of live events, location-based monitoring and video conferencing is driving the need for more network bandwidth. As end-user computers and data centre systems are modernized, the network needs to keep pace to deliver performance and quality of service to drive staff productivity and operational efficiency. 89

92 Page 3 of Report IT Strategy/process In June of 2017 ITS management started the process of determining the best path forward for the city. This included discussions with Cogeco, independent market analysis and an assessment of the city s current and future operational requirements. The recommendation to extend our agreement with Cogeco is supported by the following factors: Operational Considerations Cogeco is a highly responsive vendor with a history of excellent service to the corporation. The positive relationship allows the City and Cogeco to work in partnership to make service improvements. The network has been highly reliable. Cogeco is intimately familiar with the city s corporate network with many years of experience building, enhancing and maintaining it and therefore can isolate and resolve issues quickly. Transitioning to another provider would be highly disruptive and require significant staff resources. The risk of instability and service disruption would be high while the new network is implemented and during the settling in period. Due to the extent of the build required, it would take considerably longer to transition to another provider. In addition to delaying the service enhancements, the current Cogeco contract would need to be extended to bridge the gap. Cogeco continues to invest and update their network using the latest technology to keep pace with evolving customer needs. Service Enhancements In the proposed agreement, Cogeco will: leverage their fibre network to support expanded public Wi-Fi and Wi-Fi for staff use in city facilities, significantly increase network capacity/performance with facility (site) connections increased from 100Mbs to 1000Mbps (1 Gig) and Internet speeds increased from 200Mbps to 1000Mbps, build fibre services to six additional locations that currently use lower grade services that are slower and less reliable, provide redundant Internet services with automatic failover to prevent service disruption in the event of an equipment failure or cable cut, expand public Wi-Fi coverage in Parks and Rec facilities, implement Wi-Fi at Spencer Smith Park, 90

93 Page 4 of Report IT implement fibre circuits to support trunk radio communications for Fire and Transit. Competitive Pricing Cogeco is offering highly competitive rates because the city s fibre network is already built and operating. Cogeco has fibre terminated in 37 City facilities. These services have been built, expanded and enhanced over many years. Cogeco was recently awarded the Halton District School Board network services contract and is committed to growing and enhancing their network services. The city would receive a 900% increase in bandwidth for each city location s connection to the corporate network for a lower monthly cost ($5 /month less per site than current rates). Rates can be extended to other boards and agencies that require fibre services. Options considered A standard procurement process was considered however several factors led to the recommendation to enter into a new agreement with Cogeco. Cogeco s service and reliability has been well established with the city. As the incumbent, Cogeco is considered the preferred option to optimize cost and minimize change and disruption. Transitioning to another provider would require a significant build and redesign of the network which would be disruptive, require considerable resources and extend the implementation timeline. The amount of staff time that would be required would cause substantial delays for other important strategic projects. The recent Halton District School Board RFP for similar services, that was won by Cogeco, is further evidence of Cogeco s price competitiveness in the local market. ITS management is confident that Cogeco is providing highly competitive rates and excellent overall value. Renewing the contract with Cogeco will provide continuity for this critical service at competitive rates and will include major upgrades that are needed to meet the city s evolving business requirements. Financial Matters: This agreement would have an annual cost of $469,980 which is a $117,900 increase to the annual operating budget. It offers significant service enhancements that includes both new services and the expansion of existing services. The following table 91

94 Page 5 of Report IT compares the services and annual operating costs between current services and the proposed services under the new agreement: Services / Enhancements Current services: 37 sites connected to corporate fibre network 4 Internet Services Redundant connection for Fire 911 dispatch Proposed service enhancements: Site Connections upgraded from 100Mbps to 1000Mbps (1Gig) Corporate internet upgraded from 200 Mbps to 1000Mps (1Gig) 6 new locations connected via Fibre Staff Wi-Fi in 7 major facilities (102 Wireless Access Points) Improved network resilience all sites (redundancy / automatic failover) Improved Internet resilience (redundancy / automatic failover) Additional network segmentation to support traffic signal management, and other specialized applications Expanded public Wi-Fi (36 Access Points in 18 facilities New Public Wi-Fi Spencer Smith Park Two new fibre circuits for trunk radio communications for Transit and Fire Current Annual Cost New Annual Cost Annual Budget Increase $352,080 $469,980 $117,900 Cogeco anticipates investing approximately $900,000 to deliver the service enhancements proposed in the agreement. 92

95 Page 6 of Report IT As a measure of the value offered under the proposed agreement, just upgrading the city s 100 Mbps connected sites to 1000 Mbps (1 Gig) under the current contract would cost an additional $267,000 per year. In comparison, these upgrades plus all the additional proposed enhancements would cost an additional $117,900 per year. Total Financial Impact The annual operating budget increase for these services under the proposed agreement is $117,900. New locations targeted to be upgraded to fibre, are currently using lower grade services from another provider that will be discontinued. The $7200 annual savings from discontinuing these services will reduce the net annual budget increase to $110,700. Source of Funding The funding source is predominantly the ITS operating budget (CC ). Fibre services for Halton Court Services, Parks and Recreation facilities (Paletta, LaSalle, Tyandaga, Waterfront) and Fire Dispatch are covered by their respective operating budgets. Trunk radio costs for Fire and Transit will be covered by their respective operating budgets. Costs are recovered from the Burlington Performing Arts Centre, Burlington Economic Development Corporation, Burlington Public Library, and Tourism Burlington through chargebacks. The 2018 proposed budget would accommodate the increase that would result from the new Cogeco contract. Other Resource Impacts Resource impacts are expected to be minimal and work accommodated with existing resources within the established ITS workplan. Further assessment will be done on modifications required at Spencer Smith to accommodate WiFi equipment, electrical, etc. Staff resources from P&R and RPM would be required to plan and coordinate the work associated with this installation. Connections: City partners that currently utilize the corporate network will benefit from the increased service levels and enhancements. Other partners such as the Burlington Art Gallery, Museums, Chamber of Commerce and the Burlington Downtown Business Association will have the opportunity to leverage the city rates for their Internet services. 93

96 Page 7 of Report IT Public Engagement Matters: N/A Conclusion: The corporate network is critical IT infrastructure that is vital to the operation of the city and service delivery. The decision on how best to sustain and update network services beyond the end of the current contract was carefully considered. Among the key considerations were cost, risk, resource impacts, service, reliability and network enhancements to support rapidly expanding business services. ITS Management feels very strongly that the best path forward is to enter into a new 5-year contract with Cogeco that sustains, enhances and expands services as detailed in this report. Respectfully submitted, Randy Bennett Manager of IT Infrastructure and Operations x7757 Report Approval: All reports are reviewed and/or approved by Department Director, Director of Finance and Director of Legal. Final approval is by the City Manager. 94

97 Page 1 of Report TR SUBJECT: PRESTO ten-year operating agreement TO: FROM: Committee of the Whole Transit Department Report Number: TR Wards Affected: All File Numbers: , Date to Committee: November 27, 2017 Date to Council: December 11, 2017 Recommendation: Approve transit department report TR outlining the key business terms and conditions for the new ten-year operating agreement for the operation of the PRESTO electronic fare payment system; and Authorize the Mayor and City Clerk to execute a new ten-year agreement with Metrolinx based on the key business terms and conditions, subject to the satisfaction of the City Solicitor and the Director of Transit. Purpose: The report provides Council with an update on the negotiations that have taken place in 2016 and 2017 regarding the new ten-year PRESTO Operating Agreement with the City of Burlington. This is consistent with the strategic direction A City that Moves Increased Transportation Flows and Connectivity Executive Summary: In June 2006, the City of Burlington entered into a ten-year operating agreement to adopt the PRESTO card system. PRESTO was intended to facilitate more seamless transit travel within the GTHA. The adoption of PRESTO was a requirement for 905 transit agencies to receive Provincial Gas Tax Funding. 95

98 Page 2 of Report TR The original agreement saw the Province of Ontario funding a significant portion of the PRESTO capital and back office costs with a smaller proportion of the cost shared among the participating municipalities. The original PRESTO operating agreement (OA) with Metrolinx expired on October 27, A one-year extension of the current terms was granted pending an agreement in principle of new terms by October 27, As a new agreement was not finalized by October 27, 2017, an extension has been signed with Metrolinx until the language for the new agreement is finalized. Staff have negotiated the details of the new ten-year PRESTO operating agreement, based on three key business terms along with some additional changes from what was reported to Council in June 2017 (TR-01-17). These include an earlier ramp-up for fees paid to PRESTO and a clause on minimum revenue protection for Metrolinx. The overall financial impact is estimated to be approximately $280,000 annually by 2021 based on current revenue and ridership levels. The increased cost will be phased in from Background and Discussion: Staff reported to Council at the Committee of the Whole meeting on May 29, 2017 in transit department report TR recommending that Council authorize the City Manager and the Director of Transit to continue to negotiate a new PRESTO operating agreement between the 905 Greater Toronto and Hamilton Area Transit Authorities and Metrolinx that was reflective of the terms of the agreement in principle provided in the report. A new operating agreement has been negotiated with two additional items that were not outlined in the June 2017 report. Legal staff are currently reviewing the language for the new agreement and an extension has been signed to extend the one-year agreement that ended on October 27, 2017 until this review is complete. The first change is the 905 Common Core service commission would be charged starting in 2018 rather than 2019 and would be increased over the next three years until 2020 when it reaches 3 per cent with no further increases in the ten-year agreement. Originally, the commission was to be one per cent in 2019, two per cent in 2020 and capping at three percent in 2021 and beyond. In the new agreement, this commission starts at one per cent in 2018 and 2019 and moves to three per cent in 2020 for the remainder of the ten-year agreement. The second change is the introduction of a revenue protection clause. Given the large and complex nature of the PRESTO system, significant resources are required by 96

99 Page 3 of Report TR Metrolinx to appropriately support it. Consequently, Metrolinx is requiring some revenue certainty to maintain the system in a fiscally responsible nature. With this change, the 905 transit agencies are required to meet minimum revenue generation as a group from the PRESTO system on our services. This means that if the revenue from commissions that Metrolinx receives as a whole from all of the 905 transit agencies falls below projections provided, then each transit agency would have to make up the shortfall in their revenue only. Financial Matters: Total Financial Impact The estimated operating impact of the new PRESTO agreement is approximately $280,000 annually by 2021, which has not changed from the previous report. This includes an increase in commission paid for core services (from two per cent to six per cent) and an additional three per cent commission charge for new technology to be implemented in The advanced timing of the 905 Common Core service commission will impact the 2018 estimated cost by $50K due to the one per cent increase in 2018 not identified in the previous report. Another factor affecting the commission costs in 2018 is that we were projecting a slower adoption rate for usage of the PRESTO card. We were at a 54 per cent adoption rate in June 2017 and that rate has increased to 70 per cent in October 2017, which increases the amount of commission to Metrolinx. Increases to Transit s budget will be made through the City s annual budget process. Conclusion: In executing its new ten-year PRESTO operating agreement, the customers of Burlington Transit will continue to receive the benefits of the PRESTO system. In addition, the City of Burlington will continue to receive its portion of the Provincial Gas Tax. Respectfully submitted, Sue Connor Director of Transit ext

100 Page 4 of Report TR Appendices: A. Estimated financial impact of PRESTO agreement Report Approval: All reports are reviewed and/or approved by Department Director, Director of Finance and Director of Legal. Final approval is by the City Manager. 98

101 Appendix A to TR Projected Financial Impact of PRESTO Commission Structure as per PRESTO Agreement Terms (updated October 2017) PRESTO CORE COMMISSION Year Total Transit Fare Revenue* PRESTO Usage (%) PRESTO Revenue subject to commission ($) *** PRESTO CORE Commission (%) PRESTO CORE Commission ($) PRESTO CORE Commission ($) incl HST Cost Increase over Prior Year 2016 Actual $ 4,860,344 54% $ 2,347, % $ 46,952 $ 47,779 $ Estimate $ 4,860,344 70% $ 3,102, % $ 62,045 $ 63,137 $ 15, Estimate $ 4,860,344 75% $ 3,345, % $ 100,358 $ 102,124 $ 38, Estimate $ 4,860,344 80% $ 3,588, % $ 143,531 $ 146,057 $ 43, Estimate $ 4,860,344 80% $ 3,588, % $ 179,414 $ 182,571 $ 36, Estimate $ 4,860,344 80% $ 3,588, % $ 215,297 $ 219,086 $ 36,514 Annual projected commission increase by 2021 (2016 base) $ - 26% $ 1,240, % $ 168,344 $ 171,307 $ 171, COMMON CORE COMMISSION 905 Common Core Commission ** 905 Common Core Commission ($) Year Total Transit Revenue* PRESTO Usage (%) PRESTO Revenue subject to commission ($) *** 905 Common Core Commission (%) ($) incl HST** Cost Increase over Prior Year 2016 Actual $ 4,860,344 54% $ 2,347, % $ - $ - $ Estimate $ 4,860,344 70% $ 3,102, % $ - $ - $ Estimate $ 4,860,344 70% $ 3,102, % $ 31,022 $ 31,568 $ 31, Estimate $ 4,860,344 80% $ 3,588, % $ 35,883 $ 36,514 $ 4, Estimate $ 4,860,344 80% $ 3,588, % $ 107,648 $ 109,543 $ 73, Estimate $ 4,860,344 80% $ 3,588, % $ 107,648 $ 109,543 $ - Annual projected commission increase by 2021 (2016 base) $ - 26% $ 1,240, % $ 107,648 $ 109,543 $ 109,543 TOTAL - PRESTO CORE COMMISSION COMMON CORE COMMISSION Year Total Transit Revenue* PRESTO Usage (%) PRESTO Revenue subject to commission ($) *** TOTAL PRESTO Commission (%) TOTAL PRESTO Commission ($) TOTAL PRESTO Commission ($) incl HST Cost Increase over Prior Year 2016 Actual $ 4,860,344 54% $ 2,347, % $ 46,952 $ 47,779 $ Estimate $ 4,860,344 70% $ 3,102, % $ 62,045 $ 63,137 $ 15, Estimate $ 4,860,344 70% $ 3,102, % $ 131,380 $ 133,692 $ 70, Estimate $ 4,860,344 80% $ 3,588, % $ 179,414 $ 182,571 $ 48, Estimate $ 4,860,344 80% $ 3,588, % $ 287,062 $ 292,114 $ 109, Estimate $ 4,860,344 80% $ 3,588, % $ 322,945 $ 328,629 $ 36,514 Annual projected commission increase by 2021 (2016 base) $ - 26% $ 1,240, % $ 275,992 $ 280,850 $ 280,850 *Assumes a 0% increase in ridership and fare revenue annually to isolate financial impact of PRESTO commission changes **905 Common Core cost of 1% starting in 2018 and in Agreed final common core rate is 3% charged with device refresh completion in 2020 ***PRESTO revenue is reduced by approximately $300,000 each year related to GO co fare revenue which is received without comission 99

102 Page 1 of Report TS SUBJECT: New Street pilot project review and resurfacing TO: FROM: Committee of the Whole Transportation Services Report Number: TS Wards Affected: 2, 4, 5 File Numbers: Date to Committee: November 27, 2017 Date to Council: December 11, 2017 Recommendation: Direct the Director of Transportation Services and Executive Director of Capital Works to include cycle tracks on New Street between Guelph Line and Burloak Drive for consideration in the 2019 to 2028 capital budget and forecast and pursue senior level government funding for the implementation costs; and Direct the Director of Transportation Services to convert the existing bike lane pilot project (New Street from Guelph Line to Walkers Line) to the original four-lane cross section; and Direct the Executive Director of Capital Works to carry out the resurfacing and storm sewer replacement from Cumberland Avenue to Walkers Line in 2018 in conjunction with the completion of Contract CW New Street and Drury Lane Area Various Streets Rehabilitation at a total price of $1,042,000 provided from Capital Order RA0210; and Approve as a single source, the resurfacing of New Street from Cumberland Avenue to Walkers Line to King Paving & Construction Company as outlined in transportation services department report TS

103 Page 2 of Report TS Alignment with Strategic Plan The development of a multi-modal transportation system is an important objective of the city and contributes to the health, well being, and quality of life for our residents. The need for a connected, multi-modal transportation system has been identified in Burlington s Strategic Plan. This initiative aligns with the following strategic objectives: A City that Moves Increased Transportation Flows and Connectivity A Healthy and Greener City Healthy Lifestyles Staff recognized that the inclusion of cycling facilities as part of the capital project to resurface New Street clearly aligned with the following key strategic objective: Mobility Choices more choice within the city and region through improved public transportation, active transportation and intensification that allows more residents to get where they need to go efficiently and with more choice. Providing cycling facilities, particularly throughout key transportation corridors, such as New Street, serves to provide more mobility choice to the residents of Burlington, and ensures that all road users, including cyclists, have access to safe facilities. Purpose: The purpose of the pilot project was to provide an opportunity to evaluate the impacts and benefits of on-road cycling infrastructure on New Street between Guelph Line and Walkers Line. While the pilot was two kilometers in length and not ideally integrated into a larger east-west cycling facility, it did provide an opportunity to examine the impacts on cycling volumes, vehicular delay, diversion and safety. The overall objectives of the pilot project were to reduce risk for all road users by providing a dedicated space for cyclists, as well as encouraging more people to travel by bicycle. The outcomes of the pilot project will be used to help inform the development of future cycling projects and the Cycling Master Plan Update which is currently underway. Background: On July 18, 2016, City Council approved transportation services department report TS (Cycling Alternatives for New Street - Guelph Line to Burloak Drive) with the following direction: 101

104 Page 3 of Report TS Direct the Executive Director of Capital Works and Director of Transportation Services to report back on the performance of the pilot project prior to the top layer of asphalt being placed on the section of New Street between Guelph Line and Cumberland Avenue; Following Council approval, staff converted New Street (between Guelph Line and Walkers Line) from a four-lane cross section to a three-lane cross section consisting of two through lanes and a centre two-way left-turn lane. The revised three-lane cross section included buffered on-road bike lanes. The pilot officially launched on August 23 rd, Considerable before and after data was collected throughout the duration of the pilot project in order to evaluate the performance of the on-road bike lanes and resulting impacts to vehicle travel times on New Street as well as impacts to parallel routes. Staff are also in receipt of extensive public feedback which helped shape public opinion of the pilot project and inform the recommendation. Discussion: A. Existing Transportation Conditions The following provides a general overview of geometric and traffic conditions throughout the study corridor: New Street is a minor east-west arterial that runs parallel to the QEW and Fairview Street, providing key connections to the major north-south arterial road system. New Street accommodates both residential and commuter traffic and provides access to adjacent residential, commercial and institutional developments as well as the surrounding established neighbourhoods. Current 24-hour traffic volumes along New Street range between 15,000 and 20,000 vehicles per day. Prior to installation of on-road bike lanes, an average of 60 cyclists per day used New Street. Prior to the pilot project, this section of New Street consisted of a four-lane crosssection (two travel lanes per direction) within an overall roadway width of 14.0 metres. The posted maximum speed limit throughout the corridor is 60 km/h exclusive of school zones. B. Pilot Project Design Reallocation of the existing roadway through the removal of two through vehicle lanes and introduction of a centre two-way left-turn lane. The preferred design achieved dedicated cycling facilities and reprioritized the function of the street in order to better accommodate both vehicular and cyclist traffic. 102

105 Page 4 of Report TS Throughout the pilot project, the cross section consisted of one travel lane per direction, a two-way left turn lane, and buffered bike lanes on each side of the road. Figure 1: Lane configuration prior to the bike lane installation (left graphic) and lane configuration during the pilot project (right graphic) C. Evaluation Performance evaluation of the pilot project involved data collection in order to assess the impacts and benefits of the project in the following areas: 1. Cycling environment, cycling counts, user experience and opinion on safety and comfort 2. Motoring environment: 2.1. Traffic Diversion 2.2. Travel Times 2.3. Collision Analysis 3. Community Feedback 4. Other Considerations 1. Cycling Environment, Cycling Counts, User Experience and Opinion on Safety and Comfort New Street has been identified as a key commuter cycling corridor given its continuous length, topography, and proximity to GO Stations. Under the previous lane configuration, New Street averaged 60 cyclists a day (June, 2016). Installation of the pilot has increased cycling use to an average of 80 cyclists per day. Cycling volume 103