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AMO BREAKING NEWS - Bill 69 AMO Communications to: [email protected] 2014-02-24 04:30 PM Hide Details From: AMO Communications To: "[email protected]"

TO THE IMMEDIATE ATTENTION OF THE CLERK AND COUNCIL

February 24, 2014

Prompt Payment Act, 2013 – Immediate Municipal Action Required

Bill 69, The Prompt Payment Act, 2013 has been referred to the Standing Committee on Regulations and Private Bills of the Legislature. Municipalities are urged to write to the members of the Standing Committee, the party leaders and their local MPPs. Following is a sample letter municipalities can use to voice their concerns.

The Prompt Payment Act, a Private Members Bill proposed by Liberal MPP will set strong limits on municipalities’ freedom of contract for construction and infrastructure projects if it is passed without amendment. To ensure contractors and sub-contractors are paid quickly when they undertake work, the Act would:

 Amend all construction contracts to conform – no ability to negotiate payment terms;

 Eliminate any hold-back (including warranty and maintenance) beyond that allowed under the Construction Liens Act and allow one day to release that hold back;

 Not permit payments tied to contract or construction milestones;

 Require progress payments every 31 days or less;

 Deem payment applications as accepted within 10 days unless the payer provides written notice and full particulars;

 Payment applications can be based on services performed or materials delivered – or services and materials to be supplied;

 Allow suspension or termination of a contract if progress payments are not paid on time; and

 Allow contractors to request financial information regarding the construction owners’ viability to undertake a project without limit.

Bill 69 provides for extremely short payment timelines that will not allow for appropriate review of work and certification of the payments process. The Bill could result in costly work stoppages and restarts and potential litigation to settle disputes.

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AMO is requesting that Bill 69 , The Prompt Payment Act, 2013 be amended to allow municipalities to continue to exert prudent stewardship over public financial resources by:

 reflecting more realistic timelines for payments in infrastructure projects;

 allowing time for due diligence before accepting work and certifying payments; and

 allow payments to continue to be tied to project milestones;

AMO Contact: Craig Reid, Senior Advisor, E-mail [email protected], 416.971.9856 ext. 334.

Members of the Standing Committee on Regulations and Private Bills c/o Valerie Quioc Lim, Committee Clerk [email protected]

Local MPPs

Dear (______):

Re: Bill 69, The Prompt Payments Act, 2013 - An Act respecting payments made under contracts and subcontracts in the construction industry

I am writing to you today regarding Bill 69, The Prompt Payments Act, 2013 . This legislation will have significant impacts on my municipalities ’ ability to manage taxpayer funds prudently in construction and infrastructure contracts. If it is passed as is, Bill 69 could negatively impact municipalities, other public sector organizations, provincial government ministries and agencies as well as potentially residents and homeowners.

In particular, Bill 69 will limit our ability to contract for the best payment arrangements to safeguard public funds in each construction project we manage. It imposes unrealistic and imprudent timelines for payment and to review work and certify payments; limits our ability to hold back reserves for warranty and maintenance; and does not reflect the complex nature of financial arrangements under large infrastructure projects.

As a result, we are requesting that Bill 69 be amended to:

 reflect more realistic timelines for payments in infrastructure projects;

 allow time for due diligence before accepting work and certifying payments; and

 allow payments to continue to be tied to project milestones;

Sincerely,

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(Name) cc: The Honourable , The Honourable , Minister of Municipal Affairs and Housing Steven Del Duca, MPP, Vaughan Andrea Horwath, NDP Leader Tim Hudak, PC Leader

PLEASE NOTE AMO Breaking News will be broadcast to the member municipality's council, administrator and clerk. Recipients of the AMO broadcasts are free to redistribute the AMO broadcasts to other municipal staff as required. We have decided to not add other staff to these broadcast lists in order to ensure accuracy and efficiency in the management of our various broadcast lists.

DISCLAIMER These are final versions of AMO documents. AMO assumes no responsibility for any discrepancies that may have been transmitted with the electronic version. The printed versions of the documents stand as the official record.

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Joint and Several Liability - Municipal Action Needed AMO Communications to: [email protected] 2014-02-07 02:59 PM Hide Details From: AMO Communications To: "[email protected]"

TO THE IMMEDIATE ATTENTION OF THE CLERK AND COUNCIL

February 7, 2014

Recent Developments in Joint and Several Liability – Municipal Action Needed

Two recent developments are worthy of the immediate written support of municipal councils and municipal solicitors.

The first is a private member’s resolution introduced by Randy Pettapiece, MPP for Perth- Wellington. It calls on the government to implement comprehensive reform to joint and several liability by June 2014. Debate on this motion is scheduled for February 27, 2014. While a resolution of the Ontario Legislature is not a specific legislative plan, it does capture the spirit of municipal concerns. Mr. Pettapiece has written directly to all councils seeking your support; AMO encourages your reply.

Of immediate significance, the Ministry of the Attorney General has recently written to members of the legal community seeking their input on two specific proposals under consideration. Feedback is due by February 14, 2014. The proposals include a modified version of proportionate liability that applies in cases where a plaintiff is contributorily negligent (the Saskatchewan model). Also under consideration is a limit on awards such that a municipality would never be liable for more than two times its proportion of damages (the Multiplier model). AMO supports the adoption of both of these measures.

This is a positive development for municipalities and a step in the right direction. The adoption of both reforms would be a significant incremental step to addressing a pressing municipal issue. The written support of municipal councils and solicitors is requested. Below is a draft letter for municipalities to submit to the provincial government by February 14, 2014. Please add your voice of support.

As you know, municipal governments have long advocated for liability reform because the legal regime of joint and several liability makes municipalities and property taxpayers an easy target for litigation.

It has been two years since AMO conducted the first ever municipal insurance survey, which found that municipal liability premiums had increased 22 per cent over 5 years and 4 years since AMO presented a comprehensive report detailing municipal challenges to the Attorney General. We have argued for some time that the heavy insurance burden and legal environment is unsustainable for Ontario’s communities.

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AMO Contact: Matthew Wilson, Senior Advisor, [email protected] - 416.971.9856 ext. 323 .

The Honourable Attorney General McMurtry-Scott Building 720 Bay Street – 11 th Floor Toronto ON M7A 2S9

Dear Attorney General:

[I or we] support the government’s consideration and adoption of measures which limit the punishing impact of joint and several liability on municipalities.

The provisions of the Negligence Act have not been updated for decades and the legislation was never intended to place the burden of insurer of last resort on municipalities. It is entirely unfair to ask municipalities to carry the lion’s share of a damage award when at minimal fault or to assume responsibility for someone else’s mistake. Other jurisdictions have recognized the current model of joint and several liability is not sustainable. It is time for Ontario to do the same.

If this situation continues, the scaling back on public services in order to limit liability exposure and insurance costs will only continue. Regrettably, it will be at the expense of the communities we all call home.

For this reason, [I or we] support the adoption of both models under consideration as a significant incremental step to addressing a pressing municipal issue.

Sincerely,

Name cc: The Honourable Kathleen Wynne, Premier of Ontario The Honourable Linda Jeffrey, Minister of Municipal Affairs and Housing

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PLEASE NOTE AMO Breaking News will be broadcast to the member municipality's council, administrator and clerk. Recipients of the AMO broadcasts are free to redistribute the AMO broadcasts to other municipal staff as required. We have decided to not add other staff to these broadcast lists in order to ensure accuracy and efficiency in the management of our various broadcast lists.

DISCLAIMER These are final versions of AMO documents. AMO assumes no responsibility for any discrepancies that may have been transmitted with the electronic version. The printed versions of the documents stand as the official record.

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AMO Policy Update - 2014 Provincial Policy Statement AMO Communications to: [email protected] 2014-02-24 06:12 PM Hide Details From: AMO Communications To: "[email protected]"

TO THE IMMEDIATE ATTENTION OF THE CLERK AND COUNCIL

February 24, 2014

2014 Provincial Policy Statement Released at ROMA/OGRA

Today the Honourable Linda Jeffrey, Minister of Municipal Affairs and Housing, released the revised Provincial Policy Statement (PPS), issued under Section 3 of the Planning Act . It is intended to provide direction to municipalities on land use matters of provincial interest. All decisions under the Planning Act are to "be consistent" with the PPS.

The PPS review commenced in March 2010. After extensive consultation, MMAH has amended the PPS with an aim to strengthen the economy and employment, recognize the diversity of settlement areas and rural areas, provide for flexibility in policies to reflect local circumstances, and protect resources and infrastructure assets.

While many of the changes refine or expand on the previous PPS, there are a few new features:

 There is a new section on "Rural" to help with interpretation of the policies in areas with less population density and smaller centres such as allowing for rounding out of settlement areas on individual services and permitting on farm diversified uses;  The policy now requires identification of natural heritage systems in southern Ontario and recognizing systems may be different in settlement areas, rural areas, and prime agricultural areas.  The policy requires consideration of potential impacts of climate change (e.g. flooding due to severe weather events) and supporting the reduction of greenhouse gas emissions and adaptation to climate change. Encourages green infrastructure (e.g. permeable surfaces) and strengthening storm water management requirements.

 Municipalities are to recognize existing constitutional Aboriginal and treaty rights. It encourages planning authorities to coordinate planning matters with Aboriginal communities.

Please note the new PPS takes effect April 30, 2014. Applications must conform to this PPS and will not be "grandfathered".

MMAH has committed to immediately work with provincial and municipal planners with education events, webinars, and tools. Most notably are the Northern and Rural Primers to assist with implementation and application of the policies.

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For a copy of the document and other guides and materials use the following link: http://www.mah.gov.on.ca/Page215.aspx

AMO Contact: Cathie Brown, Senior Advisor, [email protected] , 416.971.9856 ext. 342

PLEASE NOTE AMO Breaking News will be broadcast to the member municipality's council, administrator and clerk. Recipients of the AMO broadcasts are free to redistribute the AMO broadcasts to other municipal staff as required. We have decided to not add other staff to these broadcast lists in order to ensure accuracy and efficiency in the management of our various broadcast lists.

DISCLAIMER These are final versions of AMO documents. AMO assumes no responsibility for any discrepancies that may have been transmitted with the electronic version. The printed versions of the documents stand as the official record.

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The Honourable , MPP Minister of Labour 400 University Avenue, 14th Floor Toronto ON M7A 1T7

Re: Reforming Ontario’s Broken Interest Arbitration System

Dear Minister Naqvi,

On behalf of the Ontario Chamber of Commerce and its network of 160 local chambers of commerce and boards of trade, we are writing to express concern over the impact that the province’s interest arbitration system is having on Ontario’s competitiveness.

As you are aware, interest arbitration is the only legal mechanism available to municipalities to settle contract negotiation disputes with essential municipal workers such as police officers, firefighters, and some paramedics.

Partly as a result of interest arbitration, emergency service costs are growing much more quickly than the Consumer Price Index, and faster than the average growth rate of other public sector workers’ wages, including nurses and teachers. As a result of the costly contract settlements created by the current interest arbitration system, there is significant pressure on municipalities to raise taxes and/or reduce services to compensate.

Competitive tax rates and quality public services are key to economic development and prosperity in our communities. The current interest arbitration model is hurting municipalities’ economic competitiveness, and ultimately the competitiveness of the province.

We recommend that the following changes be made to the interest arbitration system:

• streamline the process by adopting the single arbitrator model for all hearings, imposing limits on pre-hearing processes and post-hearing submissions and mandating a maximum period of one year (from the start of the process to its completion) for arbitrators to complete their work;

• arbitrators should be provided with clear, measurable criteria upon which to base their decisions, particularly regarding the “fiscal health” of the community;

• arbitrators should be required to provide a written explanation of their decisions, with clear assessments of the mandated criteria for arbitration, and must give priority to how the “fiscal health” of a community was considered when making a decision; and

• the “ability to pay” criteria used in interest arbitration decisions should be broadened to include the wider economic and fiscal environment, and productivity criteria (as recommended by the Commission on the Reform of Ontario’s Public Services).

1 We are increasingly worried about the negative impact of unsustainable increases in emergency services labour costs on Ontario’s municipalities and the broader Ontario economy. As a demonstration of the importance of interest arbitration reform to Ontario businesses and municipalities from across the province, 30 chamber executives have signed on to this letter.

We would be pleased to organize a meeting between you and a small group of representatives of the chamber network to further discuss these ideas and how the current interest arbitration framework is impacting our communities.

If you have questions or comments and would like to arrange a meeting, please do not hesitate to contact Josh Hjartarson, Vice President, Policy & Government Relations at 416-482-5222 ext. 2320 or [email protected].

Thank you,

Jim DiNovo Anne MacDonald Keith Hoey Brantford-Brant Chamber of Commerce Brockville and District Chamber of Commerce Burlington Chamber of Commerce

Greg Durocher Roberta Scarrow Gail Bishop Cambridge Chamber of Commerce Centre Wellington Chamber of Commerce Chatham-Kent Chamber of Commerce

Kevin Hargreaves Glen Baillie Kathleen Dills Cornwall & Area Chamber of Commerce Grand Bend & Area Chamber of Commerce Halton Hills Chamber of Commerce

Keanin Loomis Ann Campbell Matt Hutcheon Hamilton Chamber of Commerce Ingersoll District Chamber of Commerce Greater Kingston Chamber of Commerce

2 Gerry Macartney Richard Cunningham Debra Scott London Chamber of Commerce Markham Board of Trade Newmarket Chamber of Commerce

Walter Sendzik John Sawyer Allan O’Dette Greater Niagara Chamber of Commerce Oakville Chamber of Commerce Ontario Chamber of Commerce

Bob Malcolmson Bert Loopstra Jill Campbell Greater Oshawa Chamber of Commerce Owen Sound & District Chamber of Commerce Perth & District Chamber of Commerce

Suzanne Andrews Rory Ring Mark Barsanti Quinte West Chamber of Commerce Sarnia Lambton Chamber of Commerce Sault Ste. Marie Chamber of Commerce

Julie Curran Bob Hammersley Debbi Nicholson Scugog Chamber of Commerce St. Thomas & District Chamber of Commerce Greater Sudbury Chamber of Commerce

3 Charla Robinson Phil Barton Matt Marchand Thunder Bay Chamber of Commerce Timmins Chamber of Commerce Windsor-Essex Regional Chamber of Commerce

Martha Dennis Woodstock District Chamber of Commerce

cc. The Honourable Kathleen Wynne, Premier of Ontario Pat Vanini, Executive Director, Association of Municipalities of Ontario

4 AMO Watch File - February 27, 2014 Page 1 of 2

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February 27, 2014

In This Issue - End-of-Life Vehicle (ELV) processing. - New project categories for the federal Gas Tax Fund. - AMO's Council Challenges Workshop this March & April. - Planning a Creative City at AMO's Urban Symposium. - On the Agenda at the AMO Annual Conference. - Final two Energy Workshops before Energy Plan deadline. - Leverage LAS’ experience to save your municipality money. - Real asset management municipal examples at LAS/MFOA Symposium. - Niagara Region resolution concerning hydro rate increases. - Career opportunity with Cochrane District SSAB.

Provincial Matters The Ministry of the Environment is looking for input on proposed regulatory changes that would apply new environmental standards to ELV processing. Feedback on the discussion paper is due by April 6.

Federal Matters A new federal Gas Tax Fund Agreement will have more eligible project categories to invest in. Visit “What’s New” to learn how changes to the Fund will benefit your community.

Eye on AMO/LAS Events AMO's Council Challenges workshop asks the question "Are you ready for...?" and will cover topics related to anti-spam legislation, lame duck council provisions, preparing for the challenges for the year ahead and much more. Learn more and register today.

How does art and culture contribute to a healthy community and economy? Jeff Melanson, President of the Banff Centre, will present at the AMO Urban Symposium (April 3 &4) on what it takes to Plan a Creative City. Learn more about the program and register today.

The agenda at the AMO Annual Conference continues to grow! With three keynotes previously announced, AMO is pleased to announce the addition of Nik Nanos, famed Canadian public opinion pollster, to the program. Learn more about what's on the agenda and register today.

Due to popular demand, LAS is offering two more energy planning workshops in March. Those preparing their energy conservation plans ahead of the July 1, 2014 regulatory deadline are encouraged to register before they sell out.

Attend one of our seven NO-COST town hall sessions to learn about LAS’ no-cost energy consulting service, streetlight upgrade program, and 3 energy procurement opportunities that can help you address rising energy commodity costs in your organization.

The LAS/MFOA Asset Management Symposium is for municipal staff and elected officials with an interest in their organization’s asset management program. Attendees will learn about the importance of asset management, the components of successful plans, leading case studies, and also policy considerations.

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Municipal Matters * The Niagara Region resolution calls on the Premier and Province of Ontario to take immediate action to prevent the implementation of any hydro rate increases.

Career opportunities EMS, Deputy Chief - Cochrane District Social Services Administration Board (CDSSAB). Please apply by March 14, 2014 to Sue Chernier, Human Resources Assistant, 500 Algonquin Blvd. E., Timmins ON P4N 1B7. Fax: 705.268.8290; Email: [email protected] .

About AMO AMO is a non-profit organization representing almost all of Ontario's 444 municipal governments. AMO supports strong and effective municipal government in Ontario and promotes the value of municipal government as a vital and essential component of Ontario's and Canada's political system. Follow @AMOPolicy on Twitter!

AMO Contacts AMO Watch File Team , Tel: 416.971.9856 Conferences/Events Policy and Funding Programs LAS Local Authority Services Limited MEPCO Municipal Employer Pension Centre of Ontario OMKN Ontario Municipal Knowledge Network Media Inquiries , Tel: 416.729.5425 Municipal Wire, Career/Employment and Council Resolution Distributions

*Disclaimer: The Association of Municipalities of Ontario (AMO) is unable to provide any warranty regarding the accuracy or completeness of third-party submissions. Distribution of these items does not imply an endorsement of the views, information or services mentioned.

Please consider the environment Association of Municipalities of Ontario 200 University Ave. Suite 801,Toronto ON Canada M5H 3C6 before printing this. To unsubscribe, please click here

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