CHAIR AND MEMBERS CORPORATE SERVICES COMMITTEE MEETING JANUARY 10, 2017
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1 TO: FROM: SUBJECT: CHAIR AND MEMBERS CORPORATE SERVICES COMMITTEE MEETING JANUARY 10, 2017 MARTIN HAYWARD MANAGING DIRECTOR, CORPORATE SERVICES AND CITY TREASURER, CHIEF FINANCIAL OFFICER PROVINCIAL DEDICATED GAS TAX FUNDS FOR PUBLIC TRANSPORTATION PROGRAM RECOMMENDATION That, on recommendation of Managing Director, Corporate Services and City Treasurer, Chief Financial Officer, attached proposed by-law (Appendix A ) BE INTRODUCED at Municipal Council meeting on January 17, 2017 to authorize Mayor and Chief Financial Officer/Treasurer to execute a Letter of Agreement between Province of Ontario and City of London with respect to Dedicated Gas Tax Funds for Public Transportation Program. PREVIOUS REPORTS PERTINENT TO THIS MATTER Letter of Agreement - Provincial Dedicated Gas Tax Funds for Public Transportation (Corporate Services Committee January 6, 2015) Provincial Dedicated Gas Tax Funds for Public Transportation (Corporate Services Committee January 19, 2016) BACKGROUND On October 22, 2004, Province of Ontario announced its Dedicated Gas Tax Funds for Public Transportation Program. The London Transit Commission has advised that Province has indicated that dedicated gas tax funds are to be used for following purposes: - Public transportation capital expenditures that promote increased transit ridership, and are above a municipality s baseline spending; - Public transportation operating expenditures that are above a municipality s baseline spending; - Capital expenditures for replacement of any public transportation vehicles that are above a municipality s baseline spending; - Capital expenditures that provide improvements to public transportation security and passenger safety, and are above a municipality s baseline spending; and - Major refurbishment on any fully accessible, or to be made fully accessible, public transportation vehicle, and are above a municipality s baseline spending. The Minister of Transportation has recently confirmed City s allocation of $9,356,892 for 2016/2017 Program. Each year attached Letter of Agreement and supporting by-law must be received before funds will be released. RECOMMENDED BY: MARTIN HAYWARD MANAGING DIRECTOR, CORPORATE SERVICES AND CITY TREASURER, CHIEF FINANCIAL OFFICER Attach.
2 Appendix A Bill No By-law No. A By-law to authorize execution of a Letter of Agreement for transfer of Provincial Gas Tax Revenues. WHEREAS section 5(3) of Municipal Act, 2001, as amended, provides that a municipal power shall be exercised by by-law: THEREFORE The Municipal Council of The Corporation of City of London enacts as follows: 1. The Mayor and Managing Director, Corporate Services and City Treasurer/Chief Financial Officer are hereby authorized to execute a Letter of Agreement for transfer of Provincial Gas Tax Revenues under Dedicated Gas Tax Funds for Public Transportation Program between Province of Ontario and The Corporation of City of London as outlined in Schedule A attached hereto. The Letter of Agreement shall form part of this by-law. 2. This by-law shall come into force and take effect on day it is passed. Matt Brown Mayor Catharine Saunders City Clerk
3 Ministry of Transportation Office of Minister Ministére des Transports Bureau du ministre Ferguson Block, 3 Floor Edifice Ferguson, 3e etage 77 Wellesley St. West 77, rue Wellesley ouest Toronto, Ontario Toronto (Ontario) M7A1Z8 M7A1Z8 Ontario December 12, 2016 His Worship Matt Brown Mayor City of London P0 Box 5035, City HaIl, 300 Dufferin Avenue London, ON N6A 4L9 Dear Mayor Brown: RE: Letter of Agreement between Her Majesty Queen in right of Province of Ontario, represented by Minister of Transportation for Province of Ontario ( Ministry ) and City of London ( Municipality ) Related to Funding Provided by Province of Ontario ( Province ) to Municipality under Dedicated Gas Tax Funds for Public Transportation Program (this Letter of Agreement ) This Letter of Agreement sets out terms and conditions for use of dedicated gas tax funds by municipalities for public transportation. As Province desires to increase public transportation ridership to support development of strong communities, Ministry maintains a Dedicated Gas Tax Funds for Public Transportation Program ( Program ), under which two cents of existing provincial gas tax is provided to municipalities for public transportation expenditures. Following passage of Dedicated Funding for Public Transportation Act, 2013 ( DFPTA ), a portion of tax that is paid to Ontario under Gasoline Tax Act in each fiscal year is dedicated to provision of grants, including those pursuant to Program, to municipalities for public transportation. Any funding to Municipality by Ministry will be provided in accordance with terms and conditions set out in this Letter of Agreement and enclosed Dedicated Gas Tax Funds for Public Transportation Program 2016/2017 Guidelines and Requirements ( guidelines and requirements )..12
4 -2- In consideration of mutual covenants and agreements contained in this Letter of Agreement and guidelines and requirements, which Municipality has reviewed and understands and are hereby incorporated by reference, and or good and valuable consideration, receipt and sufficiency of which are expressly acknowledged, Ministry and Municipality agree as follows: 1. To support increased public transportation ridership in Municipality, and in recognition of Municipality s need for predictable and sustainable funding to support investments in renewal and expansion of public transportation systems, Ministry agrees to provide funding to Municipality under Program to a maximum amount up to $9,356,892 in accordance with, and subject to, terms set out in this Letter of Agreement and, for greater clarity, guidelines and requirements, with $7,017,669 payable on receipt of this signed Letter of Agreement and related authorizing municipal by-law(s) and, if applicable, resolution(s), and any remaining payment(s) payable reafter. 2. Despite Section 1, Municipality understands and agrees that any amount payable under this Letter of Agreement may be subject, at Ministry s sole discretion, to adjustment to reflect final gas tax receipts and any or adjustments as set out in guidelines and requirements. 3. If Municipality receives dedicated gas tax funds on behalf of any or municipality, and or municipality has agreed to Municipality collecting dedicated gas tax funds on its behalf, Municipality shall provide, upon request and in compliance with requirements set out in guidelines and requirements, any applicable municipal by-law(s) and legal agreement(s) between Municipality and or municipality providing for such arrangement to Ministry prior to payment of any dedicated gas tax funds by Ministry under this Letter of Agreement. 4. The Municipality shall deposit funds received under this Letter of Agreement in a dedicated gas tax funds reserve account, and use such funds and any related interest only in accordance with guidelines and requirements. 5. The Municipality shall adhere to reporting and accountability measures set out in guidelines and requirements, and shall provide all requested documents to Ministry. 6. The Municipality understands and agrees that funding provided under this Letter of Agreement represents full extent of Ministry s and Province s financial contribution under Program, and that no additional funds will be provided by eir Ministry or Province for such purposes to Municipality for 2016/2017 Program year..13
5 7. The Ministry may this Letter of Agreement at any time, without liability, penalty or upon giving at thirty (30) to Municipality. If Ministry this Letter of Agreement upon notice, or more of following actions: (a) all furr of tax funds; (b) of any tax funds remaining in or control of Municipality; and (c) for any binding for acquisition of eligible public acquired, or to be acquired, with tax funds provided this Letter of Agreement, and do eir or both of following: (i) permit Municipality to offset Municipality to 7(b); and (ii) to section 1, provide Municipality with funding to cover, in whole or in part, such The funding may be provided only if is an appropriation for this and in no funding result in this Letter of Agreement exceeding amount specified Section 1. cancel repayment under costs pursuant terminate costs least terminates take one payments dedicated gas Ministry may Municipality to dedicated gas paragraph event will days written notice dedicated gas possession determine reasonable terminate transportation services such costs against re subject agreement(s) under amount maximum funding under demand owes costs. purpose, under 8. Any provisions which by ir intended to survive termination or expiration of this Letter of Agreement including, without limitation, related to disposition, accountability, records, audit, inspection, reporting, communication, liability, indemnity, and rights and will survive its termination or expiration. remedies those nature are 9. This Letter of Agreement may only be duly by executed Ministry and amended Municipality. by a written agreement 10. The Municipality it will not obligations under this Letter of Agreement. agrees that assign any of its rights or 11. The invalidity or unenforceability of any provision of Letter of validity or enforceability of any provision of Letter of Agreement. Any invalid or provision will be to be Agreement will not affect deemed severed. or unenforceable 12. The term of this Letter of Agreement will of this Letter of Agreement. signature commence on date of last 13. The Municipality Letter of Agreement by means hereby consents to execution by of an electronic signature. Ministry of this /4
6 -4- If Municipality is satisfied with and accepts terms and conditions of this Letter of Agreement, please secure required signatures for four enclosed copies of this Letter of Agreement and return two fully signed copies to: Ministry of Transportation Division Services and Program Management Office 27 Floor, Suite # Bay Street, Toronto, Ontario M7A2J8 Once Ministry has received copies of this Letter of Agreement signed by Municipality and authorizing municipal by-law(s) and, if applicable resolution(s), Ministry will make arrangements for payment of dedicated gas tax funds to Municipality. Yours sincerely, Steven Del Duca Minister of Transportation I have read and understand terms of this Letter of Agreement, as set out above, and, by signing below, I am signifying Municipality s consent to be bound by se terms. City of London Per: Mayor Date: Per: Chief Financial Officer/Treasurer Date:
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