Committee of the Whole Agenda September 16, 2019 – 7:00 PM Council Chambers Whitby Town Hall

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Call to Order

Call of the Roll: The Clerk

Declarations of Pecuniary Interest

General Government

1. Presentations

2. Delegations

3. Correspondence

3.1 Memorandum from C. Harris, Town Clerk dated August 30, 2019 8 - 17 regarding the Whitby Sustainability Advisory Committee's 2019-2022 Work Plan

Recommendation: That the 2019-2022 Work Plan for the Whitby Sustainability Advisory Committee be received for information.

4. Staff Reports

4.1. Office of the Chief Administrative Officer Report, CAO 24-19 18 - 24 Re: Growing Resilience: Durham Region Agricultural Sector Climate Adaptation Strategy

Recommendation: 1. That “Growing Resilience: Durham Region Agricultural Sector Climate Adaptation Strategy” dated April 2019 (Attachment #1) be endorsed in principle; and, 2. That Town Staff be authorized to support the objectives of the Durham Region Agricultural Sector Climate Adaptation Strategy and bring forward for Council consideration and direction any actions required for implementation that affect the Town of Whitby.

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4.2. Office of the Chief Administrative Officer Report, CAO 25-19 25 - 32 Re: Commitment to the Global Covenant of Mayors (GCoM)

Recommendation: 1. That Council endorse in principle the commitment to the Global Covenant of Mayors (GCoM), including pledging to reduce and avoid GHG emissions, prepare for the impacts of Climate Change, increase access to sustainable energy, and track progress towards these objectives; and, 2. That the Mayor of Whitby endorse the Global Covenant of Mayors on behalf of Council.

4.3. Public Works Department Report, PW 23-19 33 - 48 Re: Update to Traffic By-Law 1862- 85, Schedule N

Recommendation: 1. That an all-way stop control be installed at the intersection of Promenade Drive and Rushlands Crescent/Sandgate Street; 2. That an all-way stop control be installed at the intersection of Promenade Drive and Debosky Court; 3. That an all-way stop control be installed at the intersection of Bradley Drive and Robinson Crescent/Evensong Drive; 4. That an all-way stop control be installed at the intersection of Bassett Boulevard and Stargell Drive; 5. That an all-way stop control be installed at the intersection of Winterberry Drive and Fencerow Drive; 6. That an all-way stop control be installed at the intersection of Michael Boulevard and Calais Street; 7. That the cost for signage and installation, in the order of $18,000, be funded from the Public Works Traffic and Transportation Capital Account, for the installation of additional stop signs, pavement markings and temporary advance stop ahead warning signage; 8. That Council authorize the Clerk to bring forward the necessary By-law amendment to Traffic By-law 1862-85, for Council approval; and, 9. That a copy of the Report PW 23-19 be provided to the Durham Regional Police Service.

4.4. Public Works Department Report, PW 24-19 49 - 55 Re: Community Safety Zone, EA Fairman Public School

Recommendation: 1. That Council approves the Community Safety Zones for EA Fairman Public School as identified in Attachment 1 and

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Attachment 2; 2. That Council authorize an expenditure of $2,000 to be funded from the Public Works Traffic and Transportation Capital Account, for the installation of Community Safety Zones signage; 3. That Traffic By-law 1862-85 be amended to alphabetically incorporate the proposed changes to Schedule W: Community Safety Zones; 4. That Council authorize the Clerk to bring forward the necessary By-law amendment regarding Community Safety Zones on Town of Whitby roadways; and, 5. That the Public Works Report PW 24-19 regarding designation of Community Safety Zones in the vicinity of EA Fairman Public School be forwarded to the administration of EA Fairman Public School, the Durham District School Board, Durham Regional Police Service and Durham Student Transportation Services for their information and action.

4.5. Public Works Department Report, PW 25-19 56 - 63 Re: Update to Traffic By-Law 1862- 85, Schedule A - No Stopping

Recommendation: 1. Update Schedule A of the Traffic By-law 1862-85, No Stopping restrictions (August to June, Monday through Friday, 8:00am to 9:00am, 11:15am to 12:25pm and 3:00pm to 4:00pm) on both sides of Nathan Avenue between 30m east of the pedestrian walkway to 30m west of the pedestrian walkway leading to Winchester Public School; 2. That the cost for signage and installation, in the order of $2,500, be funded from the Public Works Traffic and Transportation Capital Account; 3. That Council authorize the Clerk to bring forward the necessary By-law amendment to Traffic By-law 1862-85, for Council approval; and, 4. That the Clerk be authorized to forward Report PW 25-19 to Winchester Public School, the Durham District School Board, Durham Student Transportation Services and Durham Region Police Service for their information.

4.6. Office of the Town Clerk Report, CLK 09-19 64 - 70 Re: Committee of the Whole Pilot Update and 2020 Committee, Council, and Public Meetings Schedule

Recommendation: 1. That Council adopt the Committee of the Whole Standing Committee structure of Council going forward; and,

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2. That Council adopt the Standing Committee, Council, and Public Meetings schedule for 2020 as shown in Attachment 1.

4.7. Office of the Town Clerk Report, CLK 10-19 71 - 77 Re: Enhanced Live Streaming – Council Chambers

Recommendation: 1. That Council endorse in principal enhanced live streaming in the Council Chambers; and, 2. That funding for enhanced live streaming equipment in the amount of $70,000 be referred to the 2020 budget for consideration.

4.8. Office of the Town Clerk Report, CLK 11-19 78 - 88 Re: 2022 Municipal Election - Method of Voting

Recommendation: 1. That further to By-law #7241-17 authorizing the use of optical scan vote tabulators for municipal elections in the Town of Whitby, Council hereby reaffirms the use of vote tabulators for the 2022 Municipal Election; 2. That Council hereby authorizes an alternative voting option of Special Mail-in Ballots for the 2022 Municipal Election and directs the Clerk to bring forward the necessary by-law: 3. That the Clerk and Treasurer shall have the authority to procure goods and services and enter into contracts and agreements necessary for the conduct of elections, in order to ensure the timely conduct of elections; and, 4. That the Clerk be directed to update the Delegation of Powers and Duties Policy G 020 accordingly.

4.9. Corporate Services Department Report, CS 33-19 89 - 96 Re: Annual Insured Claims Report

Recommendation: That report CS 33-19 of the Commissioner of Corporate Services/Treasurer be received as information.

4.10. Corporate Services Department Report, CS 46-19 97 - 132 Re: Prudent Investor Standard for Municipal Investments: Options Analysis

Recommendation: 1. That Report No. CS 46-19 Prudent Investor Standard for Municipal Investments: Options Analysis of the Commissioner of Corporate Services/Treasurer be received for information; 2. That Council endorse Town staff working with ONE Investment to

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establish a new Joint Investment Board and implement the Prudent Investor regime, including a new Investment Policy Statement for the Town and any other related agreements; and, 3. That staff report back on the new Investment Policy incorporating the Prudent Investor opportunities prior to bringing forward a final recommendation related to adopting a Prudent Investor by-law.

4.11. Corporate Services Department Report, CS 47-19 133 - 171 Re: Development Charge Background Study, Community Benefits Charge Strategy and Long Range Financial Plan

Recommendation: 1. That Council approves the advancement of the Development Charge Background Study and Long Range Financial Plan Update project to permit the undertaking of an update to the Development Charge Background Study, a Community Benefits Strategy and a Long Range Financial Plan; 2. That Council approves a total budget of $337,750 for these studies; 3. That Council approves the sole source for Hemson Consulting Ltd to undertake these studies; and, 4. That Council approves the temporary Financial Analyst position for a period of up to 18 months.

4.12. Corporate Services Department Report, CS 48-19 172 - 182 Re: Financial Update Report – Uncommitted Reserve and Reserve Fund Projection and Year to Date Development Charge Forecast

Recommendation: That report CS 48-19 is received for information.

4.13. Corporate Services Department Report, CS 49-19 183 - 216 Re: Financial Policies Update

Recommendation: 1. That Council approves the updated Disposition of Operating Surplus Policy F 010 included in Attachment 1 of this report; 2. That Council approves the Reserve and Reserve Fund Policy included in Attachment 2 of this report; 3. That Council approves the Corporate Development Reserve Policy included in Attachment 3 of this report; 4. That MD 4979 regarding the Corporate Development Reserve Policy be deemed complete and removed from the New and Unfinished Business list; 5. That Council approves the updated Growth Reserve Fund Policy F

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050 included in Attachment 4 of this report; 6. That Council approves the conversion of the Asset Management Reserve into a Reserve Fund; 7. That Council approves the updated Asset Management Reserve Fund Policy F 040 included in Attachment 5 of this report; 8. That Council approves the conversion of the Long Term Finance Reserve Fund into a Reserve; and, 9. That Council approves the updated Long Term Finance Reserve Policy F 030 included in Attachment 6 of this report.

4.14. Corporate Services Department and Public Works Department Joint 217 - 220 Report, CS 50-19 Re: Acquisition of Easement for Multi Use Path – South-East Corner of Brock Street North and Taunton Road East

Recommendation: 1. That the Town obtain an easement over Part 1, Plan 40R-30630, at the southeast corner of Brock Street North and Taunton Road East, (the “Easement”) as shown on Attachment 1 to this report; 2. That a by-law be brought forward authorizing the acquisition of the Easement; and, 3. That the Mayor and Clerk be authorized to execute the necessary documents to give effect thereto.

4.15. Corporate Services Department Report, CS 51-19 221 - 230 Re: 2019 Operating Projections Report as at July 31, 2019

Recommendation: 1. That report No. CS 51-19 of the Commissioner of Corporate Services/Treasurer is received as information; and, 2. That the Treasurer be authorized to draw from reserves/reserve funds as required for the purposes of addressing the actual year- end position.

4.16. Legal and By-law Services Department Report, LS 14-19 231 - 245 Re: Metrolinx – Whitby GO Station Naming Rights

Recommendation: 1. That Council endorses the comments to Metrolinx contained in Report LS 14-19 regarding Metrolinx’s attempt to sell naming rights to GO Stations, including the Whitby GO Station; and, 2. That Council direct staff to send to Metrolinx and the Minister of Transportation a copy of this report and a letter highlighting Council’s endorsed position regarding the sale of GO Station naming rights.

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4.17. Legal and By-law Services Department Report, LS 16-19 246 - 249 Re: GO Station Parking Lot Lease Extension – N/E Corner of Henry Street and Victoria Street West

Recommendation: 1. That Council approve the request by Metrolinx for a two year extension to the existing parking lot lease on Town property at the northeast corner of Henry Street and Victoria Street West; and, 2. That the Town Solicitor and the Treasurer be delegated the authority to execute any such agreement or document on behalf of the Town which may be necessary to give effect to the extension of the lease term.

4.18. Community Services Department Report, CMS 24-19 250 - 255 Re: Accessible Signage and Wayfinding Study

Recommendation: 1. That Council approve the budget of $139,900 for the Accessible Signage and Wayfinding Study be advanced to Q4, 2019; 2. That staff be directed to initiate an RFP for an Accessible Signage and Wayfinding Study; and, 3. That Staff be directed to report to Council with a recommended Accessible Signage and Wayfinding Standard upon completion of the study.

4.19. Community Services Department Report, CMS 23-19 256 - 263 Re: Comments for the Proposed Recommendations for the Accessible Information and Communications Standards

Recommendation: 1. That Council receive report CMS 23-19 as information; 2. That Council endorse the comments in report CMS 23-19 as the Town of Whitby's response to the call for comments from the Province of Ontario; and, 3. That Council direct the Accessibility Staff to submit comments to the Province on behalf of the Town and to meet the public comment deadline of September 27, 2019.

5. New and Unfinished Business

5.1. New and Unfinished Business - General Government 264 - 279

Adjournment

Page 7 of 279 Agenda Item # 3.1

Memorandum to Council Office of the Town Clerk

To: Mayor and Members of Council

CC: Matt Gaskell, Chief Administrative Officer Acknowledged by M. Gaskell, Maria McDonnell, Senior Manager Chief Administrative Officer Community Advancements Strategic Initiatives From: Christopher Harris, Town Clerk Date: August 30, 2019 File #: N/A Subject: Whitby Sustainability Advisory Committee 2019 – 2022 Work Plan

In accordance with the Boards and Committees Policy G 030, the 2019 – 2022 Work Plan for the Whitby Sustainability Advisory Committee is provided under the correspondence portion of the Committee of the Whole agenda for your consideration.

Recommendation:

That the 2019 – 2022 Work Plan for the Whitby Sustainability Advisory Committee be received for information.

Christopher Harris Town Clerk

Page 8 of 279 Agenda Item # 3.1

Whitby Sustainable Advisory Committee

Work Plan 2019 – 2022

Whitby Sustainability Advisory Committee (WSAC) is pleased to present its Work Plan 2019 – 2022.

The first meeting of this Term’s WSAC was in April 2019. There are 11 Members, including a Whitby in Bloom Representative, a Member of Council as Mayor’s designate, Whitby Public Library Representative, and a Community and Marketing Services Department Representative. .

The WSAC collaboratively developed their 2019-2022 Work Plan.

According to the Terms of Reference for the WSAC, the role of the Whitby Sustainability Advisory Committee is to promote sustainability, support environmental management and respond to climate change by:

 Providing advice, support and guidance to Council;

 Supporting education and awareness in the community; and,

 Assisting the Corporation and the community to identify, develop and implement plans, programs, policies, strategies and actions.

The Committee’s mandate will be furthered through the following focus areas:

 Education

o Providing information and advice to support understanding of sustainability, climate change and environmental management issues.

 Awareness

o Promoting awareness and stewardship regarding climate change and the built and natural environment through engagement, outreach and advocacy.

 Advice

o Providing input and guidance for the preparation and prioritization of plans, programs, policies, strategies, actions, corporate operations and decision making.

Page 9 of 279 Agenda Item # 3.1

The 2019-2022 Work Plan follows their mandate and incorporates the 10 principles for the One Planet Living Framework. This Framework is also used in Whitby’s Sustainable Design Guidelines and mirrored in Whitby’s Corporate Sustainability Plan.

The One Planet Principles include:

 Health and happiness

 Equity and local economy

 Culture and community

 Land and nature

 Sustainable water

 Local and sustainable food

 Travel and transport

 Materials and products

 Zero waste

 Zero carbon energy

The Work Plan compliments the mandate for and work plan for Sustainability for the Town of Whitby.

Achievements to date include the Downtown Spring Clean-Up, where over 135 lbs of waste was collected and sorted; providing recommendation to Council to declare Climate Change an Emergency, which supported unanimously at Council; and providing comments on Whitby’s Active Transportation Plan.

The Work Plan will be revisited each year through the annual report of the Committee to ensure work plan items are being met and to address any new items that should be added for upcoming years.

Attachments: Whitby Sustainable Advisory Committee Work Plan 2019-2022

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Page 10 of 279 Whitby Sustainability Advisory Committee - Work Plan, 2019 - 2022

One Planet Living Advice, Support & Education & Awareness Assist Development of Principle* Guidance to Council Plans, Programs, Strategies, Actions

#1 Health & Happiness  Provide  Increase awareness of [Climate Action] recommendation to climate change at Town Manage growth in a Council to declare a events balanced way to sustain & Climate Change positively impact the health Emergency of the community & quality  Provide of life recommendation to Council to require a “Climate Change” focus in all Town policies, programs and decisions

#2 Equity & Local  Review and provide Economy input on Town-related Provide a hierarchy of projects commercial areas to serve  Grocery stores within neighborhood, community, walking distance & municipal needs, &

provide sufficient residential land to satisfy housing needs re housing Page 11 of 279 type, tenure, density, and Agenda Item # 3.1 affordability, taking into account household size & incomes

* One Planet Living Principles applied to Municipal Level drawn from Whitby Sustainable Development Guidelines Background Report as appended to Staff Report Feb 25/19

Whitby Sustainability Advisory Committee - Work Plan, 2019 - 2022

One Planet Living Advice, Support & Education & Awareness Assist Development of Principle* Guidance to Council Plans, Programs, Strategies, Actions

#3 Culture & Community  Review and provide  Implement contest for  Foster partnerships with Manage growth in a input on Town-related residents to encourage & Conservation Authorities, balanced way to sustain & projects recognize sustainable academic institutions, positively impact the civic activities leading green businesses, local community groups identity & cultural heritage  Attend Town events to and other jurisdictions’ resources promote sustainability (e.g. environmental committees Downtown Spring Clean Up, RibFest, Canada Day,  Develop resources for local etc.) industries and businesses to reduce their  Sustainability educational environmental impact initiatives at Town sites  Partner with  Develop competition for environmentally focused students to help raise businesses to seek awareness of fundraising for events environmental issues  Develop initiatives to promote environmental sustainable practices in multi-unit residences.

#4 Land & Nature  Provide advice to  Host tree planting events  Develop program to

Page 12 of 279 Establish, maintain, Council on planting and support the Town’s encourage multi-unit Agenda Item # 3.1 preserve & enhance an more native trees in activities to increase native residences to plant gardens parks, town property species integrated & linked system  Conduct regular and new developments of public open spaces,  Conduct outreach events to biodiversity surveys to natural heritage &  Provide raise awareness of establish a benchmark of hydrologic features, recommendation to pollinators and native plant species and engage * One Planet Living Principles applied to Municipal Level drawn from Whitby Sustainable Development Guidelines Background Report as appended to Staff Report Feb 25/19

Whitby Sustainability Advisory Committee - Work Plan, 2019 - 2022

One Planet Living Advice, Support & Education & Awareness Assist Development of Principle* Guidance to Council Plans, Programs, Strategies, Actions agricultural lands, rural Council to naturalize gardens residents in conserving uses, parkland, & hydro corridors and biodiversity  Launch tree planting recreational facilities that right of ways by initiatives with schools  Provide comments and meets the needs of present eliminating mowing feedback on the Town’s & future residents &  Provide information to  Provide Urban Forest Management maintains a healthy & residents and businesses recommendation to Plan resilient Natural Heritage to encourage planting of Council to protect / System native species  Provide comments and prevent the cutting of feedback on the Town’s large caliper trees Waterfront Master Plan

#5 Sustainable Water  Provide  Assist the Town in sharing Incorporate appropriate recommendation to publicly data regarding storm water management council to install water & energy techniques & practices at drinking water/water consumption to raise the initial stage of all new bottle refill stations at awareness about development, upgrading, & community events conservation redevelopment in  Provide  Conduct outreach events to Municipality, including recommendations to promote fusion gardens to consideration for green Council to limit use of conserve water infrastructure, low impact road salt and explore development measures & alternatives the reduction of impervious Page 13 of 279 surfaces Agenda Item # 3.1

#6 Local & Sustainable  Provide advice and  Establish programs for  Identify opportunities to Food recommendations to residents to enhance urban promote the Town of Support the establishment Council to promote agriculture practices and Whitby’s Community local food sources (e.g. gardening (e.g. seed share * One Planet Living Principles applied to Municipal Level drawn from Whitby Sustainable Development Guidelines Background Report as appended to Staff Report Feb 25/19

Whitby Sustainability Advisory Committee - Work Plan, 2019 - 2022

One Planet Living Advice, Support & Education & Awareness Assist Development of Principle* Guidance to Council Plans, Programs, Strategies, Actions of community gardens, walkable communities, program and seedling Gardens Policy by: rooftop gardens, and Whitby Farmer’s giveaways) o Identifying land that farmers’ markets in Market, community  Increase frequency and can be used for appropriate locations to gardens and urban participation in compost community gardens; contribute to the agriculture) giveaway events accessibility of locally o Assisting multi-unit  Provide advice and grown produce in urban residences in recommendations to areas, thereby lowering establishing Council on urban energy consumption, community gardens; agriculture practices greenhouse gas emissions, (e.g. zoning and o Encouraging new and transportation costs policies). developments to include community gardens.  Develop a program to identify and harvest urban fruit trees

#7 Sustainable  Participate in  Host information session  Develop a ride share Transportation information sessions by on electric vehicles program Durham Region Transit Encourage sustainable  Partner with the Active  Provide comments and and provide input to transportation initiatives, Transportation Committee feedback on the Town’s increase greener, more supporting active on initiatives to encourage Active Transportation Plan

Page 14 of 279 reliable and accessible transportation, complete the uptake of cycling communities, and healthy public transit. Agenda Item # 3.1 lifestyles  Provide recommendations to Council to explore the expansion of cycling * One Planet Living Principles applied to Municipal Level drawn from Whitby Sustainable Development Guidelines Background Report as appended to Staff Report Feb 25/19

Whitby Sustainability Advisory Committee - Work Plan, 2019 - 2022

One Planet Living Advice, Support & Education & Awareness Assist Development of Principle* Guidance to Council Plans, Programs, Strategies, Actions lanes  Incentives for remote work & telecommuting

#8 Materials & Products  Conduct outreach activities  Accumulate committee Encourage energy to educate residents on members’ ideas on energy conservation through the energy conservation (e.g. wasters energy efficient bulbs, use of energy efficient  Reinstate WSAC energy star program, etc.) materials & landscaping Stargazing Event as part of  Develop a “pledge Earth Hour activities program” to collect commitments from residents to reduce energy use

#9 Zero Waste  Provide  Hold outreach events to  Develop initiatives to Encourage energy recommendation to encourage and educate support organic waste conservation by Council to ban plastic youth to reduce waste collection in multi-unit bags and Styrofoam residences encouraging efficient waste  Host educational & resource management  Provide workshops on waste  Determine the largest principles recommendation to reduction and diversion source of non-degradable Council for Town addressing: waste in Whitby Page 15 of 279 facilities and events to o Consumption;  Develop waste diversion Agenda Item # 3.1 achieve zero waste o Recycling; training resources for the industrial, commercial and o Non-degradable institutional sectors, and garbage; and residences

* One Planet Living Principles applied to Municipal Level drawn from Whitby Sustainable Development Guidelines Background Report as appended to Staff Report Feb 25/19

Whitby Sustainability Advisory Committee - Work Plan, 2019 - 2022

One Planet Living Advice, Support & Education & Awareness Assist Development of Principle* Guidance to Council Plans, Programs, Strategies, Actions o Largest sources of  Provide comments and waste feedback on the Town’s updated Corporate Energy Management Plan  Provide comments and feedback on the Town’s Climate Adaptation Plan  Provide comments and feedback on the update to the action items in the Durham Community Energy Plan  Provide comments and feedback on the update to the Durham Climate Adaptation Plan

#10 Zero Carbon  Provide advice and  Provide comments and Encourage development & recommendations to feedback on the Town’s redevelopment of lands & Council on solar panel Sustainable Design upgrading & retrofit of initiatives to conserve Guidelines energy

Page 16 of 279 infrastructure & buildings to

reduce energy Agenda Item # 3.1 consumption & greenhouse gas emissions through efficient site & building design & innovative * One Planet Living Principles applied to Municipal Level drawn from Whitby Sustainable Development Guidelines Background Report as appended to Staff Report Feb 25/19

Whitby Sustainability Advisory Committee - Work Plan, 2019 - 2022

One Planet Living Advice, Support & Education & Awareness Assist Development of Principle* Guidance to Council Plans, Programs, Strategies, Actions construction techniques

Page 17 of 279 Agenda Item # 3.1

* One Planet Living Principles applied to Municipal Level drawn from Whitby Sustainable Development Guidelines Background Report as appended to Staff Report Feb 25/19

Agenda Item # 4.1.

Town of Whitby Staff Report whitby.civicweb.net

Report Title: Growing Resilience: Durham Region Agricultural Sector Climate Adaptation Strategy

Report to: Committee of the Whole Submitted by: Sarah Klein, Director-Strategic Initiatives Date of meeting: September 16, 2019 Acknowledged by M. Gaskell, Chief Report Number: CAO 24-19 Administrative Officer Department(s) Responsible: For additional information, contact: Office of the Chief Administrative Officer Jade Schofield, MSc (Env), Project Manager, Sustainability and Climate Change ext. 2317

1. Recommendation: 1. That “Growing Resilience: Durham Region Agricultural Sector Climate Adaptation Strategy” dated April 2019 (Attachment #1) be endorsed in principle; 2. That Town Staff be authorized to support the objectives of the Durham Region Agricultural Sector Climate Adaptation Strategy and bring forward for Council consideration and direction any actions required for implementation that affect the Town of Whitby. 2. Highlights: The Durham Region Agricultural Sector Climate Adaptation Strategy (DRASCAS) was developed as a result of a recommendation included within the Durham Region Climate Adaptation Plan (DCCAP) to further explore the impacts of climate change on the Durham Agricultural sector. • The DCCAP was endorsed by Whitby Council on April 24, 2017. The newly develop DRASCAS identifies anticipated risks to the local agricultural sector, based on the climate predictions that were modelled through the SENES Climate Study completed in 2013.

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DRASCAS is intended to provide the agricultural community with programs and tools for engagement and opportunities to successfully navigate climate change and extreme weather conditions. The Strategy outlines the following objectives: 1. Increase local education and awareness on agriculture and climate change adaptation; 2. Build community and research capacity; 3. Enhance policy support for agriculture and climate change adaptation; and, 4. Address agricultural sector climate adaptation through the Durham Community Climate Adaptation Plan DCCAP, cross sectoral programs and other initiatives. Short Term Actions that The Town of Whitby can support include: 1. Broad promotion of the Strategy; 2. Addressing sectoral overlaps and integration of agricultural considerations in the ongoing work of other DCCAP Working Groups; 3. Ensuring updates to regional climate projections capture agricultural sector considerations; and, 4. Developing or encouraging the development of guidelines for climate resilient agricultural structures. At this time no financial commitment is being requested to support the implementation of the plan. 3. Background: In 2017, Durham Region contributed $321.7 million to Ontario’s total farm production. Durham is home to more than 1,300 farms, with a total farmland area of more than 118,497 hectares (292,815 acres).This represents approximately 47% of the total land area in Durham Region. In Whitby, 44% of total lands are zoned for agricultural use, and according to the 2018 Durham Business Count, twenty four (24) agricultural businesses are currently in operation within the Town’s boundaries. In 2013, Durham Region published Durham Region’s Future Climate (the SENES Study), a climate study that describes Durham Region’s future climate to the year 2049.The SENES Study suggests that, over the coming decades, the climate in Durham will experience increased temperature, more intense precipitation and increased severe weather events. Following the SENES study the Region led the development of the Durham Community Climate Adaptation Plan. This community based plan was developed through a number of expert Task Force groups, which included multiple staff representatives from the Town of Whitby. It was through the Local Food Sector that a gap was identified in the agricultural sector and required further exploration.

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As a result, the final DCCAP endorsed by Whitby Council in April 2017 included an objective to “Develop subsequent programs to address climate adaptation in the commercial agriculture and food supply sectors which included the following action item: Convene Commercial Agriculture Task Force”. The newly developed DRASCAS is a direct response to this action.

4. Discussion: In early 2018, an Agricultural Sector Expert Task Force was formed with representation from the Region of Durham and Regional Council Committee members. External members included the agricultural community, academia, Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA), the Durham Food Policy Council, Durham Integrated Growers, and the City of Pickering. The Expert Task Force worked on development of DRASCAS, which took place between March 2018 and March 2019. The Strategy included an in depth evaluation of anticipated climate risks to the local agricultural sector, resulting from the climate projections from the SENES Climate Study which indicated an increase in annual temperature, an increase and more extreme variances of precipitation events, and an increased frequency of severe weather events up until the year 2049.

Risk, Vulnerabilities and Opportunities As a result of climate change, the threats to the agricultural sector in Durham have been identified within the strategy as: • Increased heat related risks and exposure to other health risks for livestock and farm workers; • Changes in growing patterns for certain varieties of crops due to extreme changes to seasonal patterns, drought and extreme weather; • Concerns surrounding flooding and storm water management due to increased precipitation; • Rapid spread of invasive species/pests; • Damage to public infrastructure; • The security of farm buildings and structures to withstand extreme weather, and; • Increased concerns around electrical outages/capacity, emergency alerting and response during extreme weather events and high heat events. Through the strategies development process it was also identified that as a result of the climate predictions, the agriculture sector may also be able to support a longer growing season resulting in greater crop yields as a result of the warmer

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temperatures.

Key Parameters for Climate Adaptation The DRASCAS identifies a number of key parameters to ensure that Durham’s Agricultural sector is able to adapt to the impacts of climate change. The strategy lists these as: • The enhancement and protection of a healthy agricultural land base (i.e. availability of agricultural land, maintaining good quality soil);

• That public and farm infrastructure is resilient to climate change;

• Continuing to engage, educate and share best management practices and encouraging community-based research within the agriculture community;

• Continued and enhanced communication that includes information sharing, partnerships and consideration of agriculture and overlap with the work of other sectors of the DCCAP; and,

• Ensuring economic capacity.

Objectives The Strategy outlines the following objectives: 1. Increase local education and awareness on agriculture and climate change adaptation; 2. Build community and research capacity; 3. Enhance policy support for agriculture and climate change adaptation; and, 4. Address agricultural sector climate adaptation through DCCAP cross sectoral programs and other initiatives.

Short Term Activities The strategy includes an action plan which outlines possible short-term, priority activities. These include: • Broad promotion of the Strategy;

• Ensuring consideration and integration of the DRASCAS in the review and ongoing implementation of various Regional and community plans and initiatives;

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• Addressing sectoral overlaps and integration of agricultural considerations in the ongoing work of other DCCAP Working Groups;

• Ensuring updates to regional climate projections capture agricultural sector considerations;

• Working with academic and research institutions to achieve more research presence in Durham around agriculture and climate change;

• Hosting future events on the topic of climate adaptation and the agricultural sector;

• Developing or encouraging the development of guidelines for climate resilient agricultural structures; and,

• Initiating agricultural sector climate adaptation pilot projects and demonstrations with community partners and the agricultural industry. Next Steps Although specific timelines and resource requirements have not yet been fully identified, Town of Whitby sustainability staff will continue to work with the Region of Durham to provide support, for the DRASCAS where necessary. This will take place through the Town’s existing work on the DCCAP to assist the Agriculture Expert Task Force to identify programs, plans and policies that support the identified proposed objectives and actions within DRASCAS. 5. Financial Considerations: Short-term actions do not require a financial contribution from the Town of Whitby at this time. However, Sustainability staff will bring reports and recommendations forward to Council, where appropriate, to seek further support for the delivery of specific programs, plans and policies. 6. Communication and Public Engagement: The Region conducted a comprehensive stakeholder engagement comprised of two sessions, where over 150 stakeholders, including Durham’s area municipalities, conservation authorities, the Provincial Government, Parks Canada, post-secondary institutions, municipal agricultural advisory committees, and the agricultural community were involved. 7. Input from Departments/Sources: Town of Whitby staff are engaged and actively participating in the overall implementation of the DCCAP, which includes: • Representation on the DCCAP steering committee (Sustainability);

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• Chairing the Natural Environment Climate Change Collaborative - a group that is leading the implementation for the Natural Environment sector (Sustainability); • Representation on the Flooding sector task force (Public Works), and; • Regular attendance at meetings and providing input on development applications (Sustainability). The Region of Durham Council reviewed and adopted the DRASCAS on June 26, 2019. 8. Strategic Priorities: a. Council Goals The recommendations within this Report support the following Council Goals: • To deliver local jobs and prosperity through strategic planning and promotion that builds resilience and economic diversity. • To continue the Whitby tradition of responsible financial management and respect for taxpayers; and to understand the importance of affordability and sustainability to a healthy, balanced community. • To ensure Whitby is clearly seen by all stakeholders to be business and investment friendly and supportive; and to continuously improve the customer experience and the effectiveness and efficiency of communications, service delivery and approvals. b. Corporate Strategic Plan and Strategic Priorities The recommendations within this report align with the following Strategic Priorities and Objectives of the Corporate Strategic Plan: 2. Organization We will be a high performing, innovative, effective and efficient organization.

OBJECTIVES: a. Continually improve how we do things by fostering innovation and focusing on making our processes better b. Leverage technology and information to modernize our business practices c. Enhance our efforts at informing and engaging staff and community 3. Customer (note: customer is defined as both external and internal)

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Report CAO 24-19 Committee of the Whole Page 7 of 7

We will provide a consistent, optimized and positive customer service experience.

OBJECTIVES: 3.1. 3.1 Design service delivery around customer needs 3.2. 3.2 Define clear service levels 3.3. 3.3 Modernize and improve customer interaction tools 3.4. 3.4 Provide consistent customer service training for all staff 3.5. 3.5 Measure results in pursuit of ongoing improvements to the customer service experience.

4. Attachments: Attachment 1- Growing Resilience: Durham Region Agricultural Sector Climate Adaption Strategy: https://www.durham.ca/en/living- here/resources/Documents/EnvironmentalStability/Durham-Region-Agriculture- Sector-Climate-Adaptation-Strategy.pdf

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Town of Whitby Staff Report whitby.civicweb.net

Report Title: Commitment to the Global Covenant of Mayors (GCoM)

Report to: Committee of the Whole Submitted by: Sarah Klein, Director, Strategic Initiatives Date of meeting: September 16, 2019 Acknowledged by M. Gaskell, Chief Report Number: CAO 25-19 Administrative Officer Department(s) Responsible: For additional information, contact: Office of the Chief Administrative Officer Jade Schofield, Project Manager, Sustainability and Climate Change Ext 2317 Niki Van Vugt, Summer Student

1. Recommendation:

1. That Council endorse in principle the commitment to the Global Covenant of Mayors (GCoM), including pledging to reduce and avoid GHG emissions, prepare for the impacts of Climate Change, increase access to sustainable energy, and track progress towards these objectives.

2. That the Mayor of Whitby endorse the Global Covenant of Mayors on behalf of Council.

2. Highlights: The Global Covenant of Mayors (GCoM) Canada is a collaboration between the Federation of Canadian Municipalities, ICLEI Canada, the Global Covenant of Mayors Secretariat and the International Urban Cooperation Project supported by funding from the European Union. Mayors and local leaders committed to the GCoM stand ready to take concrete measures with long-term impacts to tackle the interconnected challenges of climate change mitigation and adaptation, as well as access to sustainable energy in their respective communities. To follow this vision,

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mayors and local municipalities pledge to implement policies and undertake measures to:

• Reduce and avoid greenhouse gas (GHG) emissions;

• Prepare for the impacts of Climate Change;

• Increase access to sustainable energy; and

• Track progress towards these objectives. 3. Background:

The Global Covenant of Mayors (GCoM) for Climate & Energy was created for Mayors and local governments to accelerate ambitious, measurable climate and energy initiatives that lead to an inclusive, just, low-emission and climate resilient future, helping to meet and exceed the Paris Agreement. Thirty cities in Canada have adopted the GCoM to date including, Ajax, Toronto, Burlington, and Oakville.

Within three years of this commitment, the Town of Whitby would pledge to develop, adopt, use and regularly report on the following: • A community-scale GHG emission inventory, following the recommended guidelines; • An assessment of climate risks and vulnerabilities; • Ambitious, measurable and time-bound target(s) to reduce/avoid GHG emissions; • Ambitious climate change adaptation vision and goals, based on quantified scientific evidence when possible, to increase local resilience to climate change; • An ambitious and just goal to improve access to secure sustainable and affordable energy; and, • A formally adopted plan(s) addressing climate change mitigation / low emission development, climate resilience and adaptation, and access to sustainable energy. 4. Discussion:

1. Alignment with Council’s Decision to Declare a Climate Emergency in the Town of Whitby

a. With Council’s recent decision to adopt the Climate Emergency Declaration, the Town of Whitby has acknowledged the significant threat climate change poses to both the current and future social, economic, and environmental well-being of the community.

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Report CAO 25-19 Committee of the Whole Page 3 of 6

b. Council shares a unanimous understanding that there is a need for immediate action and drastic reductions to greenhouse gas emissions. Without these changes, the future community in the Town of Whitby will face significant impacts.

2. Alignment with Whitby’s participation in the Durham Community Energy Plan (DCEP)

a. The Durham Community Energy Plan (DCEP) seeks to accelerate the transition to clean energy economy in Durham, while simultaneously achieving multiple economic, environmental and social benefits.

b. The Town of Whitby is an active partner in the DCEP and has made the commitment to reduce overall Greenhouse Gas emissions by 80% by 2050. This target can be achieved through the adoption of the Low Carbon Pathway scenario, which considers 22 actions that will be implemented across the region.

c. The Town of Whitby continues to work with the Region and the DCEP partners to further develop the six programs identified in the DCEP as well as develop a framework for implementation. 3. Alignment with Whitby’s involvement with Partners for Climate Protection (PCP) a. The Town of Whitby is an active member of the Partners for Climate Change protection. In 2019, the Town participated in the PCP program by inputting Community and Corporate data for the year of 2017. b. Through the Town’s submission, Staff will be able to measure the success rate of different Town initiatives and programs. The PCP program allows the municipality to take action and have the opportunity to save money in municipal operations, increase investment in local economy, and lower energy cost for residents and businesses. c. The PCP program incorporates a series of five milestones and the Town of Whitby currently sits at Milestone 3 for the Corporation. Within the Corporate Energy Conservation Demand Management Plan is an emissions reduction target of 19% by 2022.This target is solely corporate and focuses on facilities, fleet, waste, and lighting. The Town of Whitby adopted this target for the Corporate participation in the Partners for Climate Protection Program (PCP) led by FCM.

4. Alignment with Whitby’s first submission to the Carbon Disclosure Project (CDP)

a. This is the first year that the Town of Whitby participated in the Carbon Disclosure Project (CDP). On July 31st, 2019, Town Staff submitted the online questionnaire that required general information relating to the Town of Whitby (population, geography, size), Governance and Data Management, Climate Hazards and Vulnerability, Adaptation Actions and

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Report CAO 25-19 Committee of the Whole Page 4 of 6

Goals, Community and Corporate Greenhouse Gas Emissions (2017), Emission Reduction Targets, Mitigation Actions, and Opportunities to address Climate Change. The CDP runs the global disclosure system that enables companies, cities, states and regions to measure and manage their environmental impacts.

b. Through the Town’s disclosure, staff will be able to benchmark actions against our peers, understand where improvements can be made when it comes to engagement, and track progress as Staff moves forward with different community and corporate plans.

5. Alignment with the Town of Whitby’s Corporate Sustainability Plan (CSP)

a. In 2017, Council approved a new Corporate Sustainability Plan (CSP) that outlines goals related to sustainability for the Town as a Corporation. It is focused on the understanding of the challenges and opportunities the Town faces today and in the future.

b. The CSP outlines strategic goals and the commitment to being Green Leaders that integrate sustainability into everything that is done, sustain well-managed and cost effective assets, and support a healthy, safe and inclusive community that respects the natural environment.

c. The Town of Whitby set out key priorities for the year of 2018/2019. These have related to the creation of Sustainable Development Standards, reductions to energy consumption by greening facilities, corporate emissions management plan, annual energy reporting, Staff Rewards program, Durham Community Energy Plan, Durham Community Climate Adaptation Plan (DCCAP), and developing a Climate Change Plan. 5. Financial Considerations: The Climate Change Plan has been identified in the 2020 Capital Budget and will be reviewed through the 2020 Budget Process. In consideration of this item, it is of greater significance that the Town of Whitby commit with other local leaders and municipalities to take responsibility for their actions towards addressing the effects of climate change. 6. Communication and Public Engagement: Staff will work with Corporate Communications Division to share GCoM through the appropriate communication channels. 7. Input from Departments/Sources: Region of Durham The Durham Community Energy Plan was created in partnership with all local municipalities, Region of Durham and local stakeholders.

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8. Strategic Priorities: a. Council Goals This initiative aligns with a number of Council Goals (2018 to 2020), specifically:

• To deliver local jobs and prosperity through strategic planning and promotion that builds resilience and economic diversity.

• To make workplace morale a priority by building a collaborative, inclusive, respectful and creative work environment that engages the abilities of all staff to solve problems, accomplish new things and deliver the best outcomes to residents.

• To accelerate the pedestrian focus of our historic downtown cores; to leverage municipal tools and resources to generate downtown supportive investments; to facilitate the continued growth of our Innovation District; and to gain care and control of Baldwin Street through downtown Brooklin.

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Report CAO 25-19 Committee of the Whole Page 6 of 6

b. Corporate Strategic Plan and Strategic Priorities In addition, this proposal aligns with the following Corporate Strategic Plan Priorities:

1. People We will foster an inclusive environment where employees can experience job satisfaction and rewarding careers. OBJECTIVES: 1.1Recognize and celebrate successes 1.3 Empower staff 1.4 Attract and retain top talent 1.5 Become the organization that people want to join

2. Organization We will be a high performing, innovative, effective and efficient organization. OBJECTIVES: 2.1 Continually improve how we do things by fostering innovation and focusing on making our processes better 2.2 Leverage technology and information to modernize our business practices 2.3 Develop and utilize comprehensive business and financial planning processes

3. Customer (note: customer is defined as both external and internal) We will provide a consistent, optimized and positive customer service experience. OBJECTIVES: 3.2 Define clear service levels 3.3 Modernize and improve customer interaction tools 3.5 Measure results in pursuit of ongoing improvements to the customer service experience. 9. Attachments: Attachment 1: Global Covenant of Mayors Commitment Letter Template.PDF

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Attachment 1

Appendix C: Proposed New Global Committed Letter

Global Covenant of Mayors for Climate & Energy Commitment of Town of Whitby Ontario, Canada

I, Don Mitchell, Mayor of the Town of Whitby commit to the Global Covenant of Mayors for Climate & Energy (GCoM), joining thousands of other cities and local governments around the world currently engaged in climate leadership.

GCoM envisions a world where committed mayors and local governments – in alliance with partners – accelerate ambitious, measurable climate and energy initiatives that lead to an inclusive, just, low-emission and climate resilient future, helping to meet and exceed the Paris Agreement objectives.

Whatever the size or location, the mayors and local leaders committed to GCoM stand ready to take concrete measures with long-term impact to tackle the interconnected challenges of climate change mitigation and adaptation, as well as access to sustainable energy.

To implement this vision, we pledge to implement policies and undertake measures to (i) reduce / avoidi greenhouse gas (GHG) emissions, (ii) prepare for the impacts of climate change, (iii) increase access to sustainable energy, and (iv) track progress toward these objectives.

Specifically, within three years of this commitmentii, we pledge to develop, adoptiii, use and regularly report on the following:  A community-scale GHG emission inventory, following the recommended guidance;  An assessment of climate risks and vulnerabilities;  Ambitious, measurable and time-bound target(s) to reduce/avoid GHG emissions;  Ambitious climate change adaptation vision and goals, based on quantified scientific evidence when possible, to increase local resilience to climate change;  An ambitious and just goal to improve access to secure, sustainable and affordable energy; and  A formally adopted plan(s) addressing climate change mitigation / low emission development, climate resilience and adaptation, and access to sustainable energy. The targets and action plans for mitigation / low emission development must be quantified and consistent with or exceed relevant national unconditionaliv commitments defined through the UNFCCC (Intended) Nationally Determined Contribution (NDC). The targets and action plans should be in line with National Adaptation Plans, where these exist; and should be consistent with the

www.globalcovenantofmayors.com

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principles around energy access and urban sustainability embodied in the Sustainable Development Goals (SDGs).

We will explore the allocation of adequate staff resources and institutional arrangements. This includes governance processes, municipal structures and budget allocations to deliver on this commitment and secure continuity.

We acknowledge that there may be additional regional- or country-specific commitments or requirements that we commit to follow, and that may be agreed through our city networks or through our direct engagement with local partners of GCoM.

The Town of Whitby of Durham Region, Ontario, Canada acknowledges that continued engagement in GCoM and associated Regional or National Covenants, as established, is contingent on complying with the above requirements within established timeframes.

Name and title of person signing this commitment

575 Rossland Road East, Whitby, ON L1N 2M8 https://www.whitby.ca/en/ Don Mitchell, [email protected], 905.706.3168 128,377 people live in the Town of Whitby, within a regional land area of 146.66 sq. km Ontario, Canada OFFICIAL SIGNATURE Mandated by the [Responsible officer or municipal council] on [DATE].

i “Avoid emission” via low emission development ii Flexibility is allowed to suit differentiated local circumstances and needs. iii According to the city and local government’s procedures iv Many countries have submitted two sets of NDC targets: unconditional targets, to be implemented without any explicit external support; and conditional targets. The latter are more ambitious than unconditional targets and require external support for their fulfilment. The cities and local governments committing to the GCoM are required to commit at least to the equivalent of their country’s unconditional targets, but are encouraged to be more ambitious where possible.

www.globalcovenantofmayors.com 2

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Town of Whitby Staff Report whitby.civicweb.net

Report Title: Update to Traffic By-Law 1862- 85, Schedule N

Report to: Committee of the Whole Submitted by: Suzanne Beale, Commissioner of Public Date of meeting: September 16, 2019 Works

Report Number: PW 23-19 Acknowledged by M. Gaskell, Chief Administrative Officer Department(s) Responsible: For additional information, contact: Public Works Department Tara Painchaud, x4937 Dhaval Pandya, x4945

1. Recommendation: 1. That an all-way stop control be installed at the intersection of Promenade Drive and Rushlands Crescent/Sandgate Street. 2. That an all-way stop control be installed at the intersection of Promenade Drive and Debosky Court. 3. That an all-way stop control be installed at the intersection of Bradley Drive and Robinson Crescent/Evensong Drive. 4. That an all-way stop control be installed at the intersection of Bassett Boulevard and Stargell Drive. 5. That an all-way stop control be installed at the intersection of Winterberry Drive and Fencerow Drive. 6. That an all-way stop control be installed at the intersection of Michael Boulevard and Calais Street. 7. That the cost for signage and installation, in the order of $18,000, be funded from the Public Works Traffic and Transportation Capital Account, for the installation of additional stop signs, pavement markings and temporary advance stop ahead warning signage.

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Report PW 23-19 Committee of the Whole Page 2 of 7

8. That Council authorize the Clerk to bring forward the necessary By-law amendment to Traffic By-law 1862-85, for Council approval. 9. That a copy of the Report PW 23-19 be provided to the Durham Regional Police Service. 2. Highlights: • Area residents have expressed safety concerns about visibility, potential collisions and near misses at Town intersections.

• As part of the traffic operational review, Town staff have observed sightline issues and stop sign non-compliance at the existing stop controlled approaches including rolling stops at all intersections.

• Visibility constraints due to existing geometry, increases the potential risk at these intersections.

• In order to mitigate the reduced visibility, Public Works staff are proposing all-way stop control.

• Staff are still assessing for traffic calming on numerous streets (i.e. Promenade Drive) and report back with traffic calming recommendations. 3. Background: Public Works Report PW 23-19 originates in response to residents safety concerns regarding visibility, potential collisions and near misses at a number of intersections within the Town. Promenade Drive and Rushlands Crescent/Sandgate Street Rushlands Crescent and Sandgate Street are both classified as Local Roads in Schedule D of the Town of Whitby Official Plan. Street lighting is implemented along both corridors and a sidewalk is present on the west side of the roadways. Promenade Drive is categorized as a Local Road but operates as a Collector Road and therefore has higher vehicle volumes. Street lighting is implemented along the corridor. Promenade Drive has an urban cross-section with sidewalks on both sides of the roadway. The surrounding land use is single family residential. The location map is provided as Attachment 1. Promenade Drive and Debosky Court Debosky Court is classified as a Local Road in Schedule D of the Town of Whitby Official Plan. Street lighting is implemented along the corridor but there are no sidewalks. The surrounding land-use is single family residential. The location map is provided as Attachment 2.

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Report PW 23-19 Committee of the Whole Page 3 of 7

Bradley Drive and Robinson Crescent/Evensong Drive Bradley Drive is categorized as a Collector Road within the Town of Whitby Official Plan, Schedule D. Street lighting is implemented along the corridor and sidewalks exist on both sides of the roadway. Robinson Crescent and Evensong Drive are both classified as Local Roads in Schedule D of the Town of Whitby Official Plan. Street lighting is implemented along both corridors. Robinson Crescent has sidewalks on both sides of the street and Evensong Drive has a sidewalk on the west side of the street. The surrounding land-use is single family residential. The location map is provided as Attachment 3. Bassett Boulevard and Stargell Drive Bassett Boulevard is categorized as a Collector Road within the Town of Whitby Official Plan, Schedule D. Street lighting is implemented along the corridor and there are sidewalks on both sides of the roadway. Stargell Drive is classified as a Local Road in Schedule D of the Town of Whitby Official Plan. Street lighting is implemented along the corridor and a sidewalk is present on the east side of the roadway. The surrounding land-use is single family residential. The location map is provided as Attachment 4. Winterberry Drive and Fencerow Drive Winterberry Drive and Fencerow Drive are both classified as Collector Roads in Schedule D of the Town of Whitby Official Plan. Street lighting is implemented along both corridors. Both roadways have an urban cross-section with sidewalks on both sides of the street. The surrounding land-use is single family residential. The location map is provided as Attachment 5. Michael Boulevard and Calais Street Michael Boulevard is categorized as a Collector Road within the Town of Whitby Official Plan, Schedule D. Street lighting is implemented along the corridor. Michael Boulevard has an urban cross-section with sidewalks on both sides of the street. Michael Boulevard has two elementary schools in close proximity to Calais Street. Calais Street is classified as a Local Road in Schedule D of the Town of Whitby Official Plan. Street lighting is implemented along the corridor and a sidewalk is present on one side of the roadway. The surrounding land-use is single family residential. The location map is provided as Attachment 6. 4. Discussion: Turning movement count data for the study intersections is not available. However, based on the staff’s experience and engineering judgement, the subject intersections are not expected to meet thresholds to satisfy the warrant as specified by the Ontario Ministry of Transportation.

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Report PW 23-19 Committee of the Whole Page 4 of 7

The collision summary reports for the time period of January 2014 through August 2019 were obtained from the Region of Durham and the details are provided in Table 1 below.

Intersection No. of Collisions (2014-2019)

Promenade Drive and Rushlands One (2014) Crescent/Sandgate Street

Promenade Drive and Debosky Court Nil

Bradley Drive and Robinson Crescent/Evensong Nil Drive

Bassett Boulevard and Stargell Drive Two (2015 and 2016)

Winterberry Drive and Fencerow Drive Nil

Michael Boulevard and Calais Street One (2016)

Table 1 - Number of Collisions Area residents have commented that they have observed minor collisions and numerous near misses at these intersections. These collisions may not have been reported and therefore not captured in the Region’s database. Transportation staff have reviewed sightlines and intersection geometrics at all study intersections based on travel speeds and are recommending all-way stop control due to restricted turning sight distances for vehicles exiting the minor streets at all study intersections. All roadways have an unposted speed limit of 50 km/h. Sight distance requirements must be considered for both through vehicles approaching an intersection, as well as vehicles entering the intersection from a stopped position. During site visits, staff observed stop sign non-compliance and/or rolling stops at these intersections. To introduce an all-way stop control at these intersections, additional stop signs and pavement markings are required (i.e. additional stop signs, all-way tabs, stop bars, and directional dividing lines).The proposed draft By-law update to Traffic By-law 1862-85 is attached as Attachment 7. The change in traffic control will be communicated with advance warning signage as identified in Ontario Traffic Manual Book 6, Warning Signs. A Stop Ahead sign and New Burst sign will be placed in advance of these intersections to notify

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Report PW 23-19 Committee of the Whole Page 5 of 7

drivers that they are approaching a new stop controlled intersection. The temporary advance warning signage will remain in place for a period of 30 days, or until drivers become familiar with the installation of new traffic control device. Due to the road geometry, it is recommended that the stop ahead signage for westbound motorist on Bradley Drive and northbound motorist on Fencerow Drive be permanently installed. Transportation staff also conducted a site visit at all study intersections to confirm the feasibility of installation of stop signs without impacting existing trees/vegetation. The installation of stop signs at these intersections is not expected to adversely impact existing trees on the boulevards. Staff are still assessing numerous streets (i.e. Promenade Drive) for potential traffic calming measures and report back with appropriate recommendations. 5. Financial Considerations: The cost to install all-way stop controls at the study intersections is not expected to exceed $18,000 (taxes included) and would be funded through the Public Works Traffic and Transportation Capital Account. The cost includes additional signage and pavement markings, temporary signage to advise motorist of the change in traffic control, and staff time for the installation and removal, as needed. 6. Communication and Public Engagement: Input received to date from the area residents has been considered. Residents with homes located at the intersections have been notified of Report PW 23-19. 7. Input from Departments/Sources: Operations staff will be installing the signage and pavement markings. Due to resource constraints and locate delays the installation is expected to take several months. 8. Strategic Priorities: a. Council Goals Report PW 23-19 supports the following 2018 – 2022 Council goals of enhancing the safety of local streets and neighbourhoods and increasing citizen’s involvement in strengthening community safety.

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Report PW 23-19 Committee of the Whole Page 6 of 7

• To remain the community of choice for families and become the community of choice for seniors and job creators; and to focus new growth around the principles of strong, walkable and complete neighbourhoods that offer mobility choices. b. Corporate Strategic Plan and Strategic Priorities The recommendations in this report support the Corporate Strategic Priority of being a customer focused organization.

1. People We will foster an inclusive environment where employees can experience job satisfaction and rewarding careers.

Objectives: 1.1. Recognize and celebrate successes 1.2. Create opportunity for employee growth and development 1.3. Empower staff 1.4. Attract and retain top talent 1.5. Become the organization that people want to join

2. Organization We will be a high performing, innovative, effective and efficient organization.

Objectives: 2.1. Continually improve how we do things by fostering innovation and focusing on making our processes better 2.2. Leverage technology and information to modernize our business practices 2.3. Develop and utilize comprehensive business and financial planning processes 2.4. Align our organization structure to optimize decision-making and agility 2.5. Enhance our efforts at informing and engaging staff and community

3. Customer (note: customer is defined as both external and internal) We will provide a consistent, optimized and positive customer service experience.

Objectives: 3.1. Design service delivery around customer needs

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Report PW 23-19 Committee of the Whole Page 7 of 7

3.2. Define clear service levels 3.3. Modernize and improve customer interaction tools 3.4. Provide consistent customer service training for all staff 3.5. Measure results in pursuit of ongoing improvements to the customer service experience. 9. Attachments: Attachment 1: Location Map for Promenade Drive and Rushlands Crescent/Sandgate Street Attachment 2: Location Map for Promenade Drive and Debosky Court Attachment 3: Location Map for Bradley Drive and Robinson Crescent/Evensong Drive Attachment 4: Location Map for Bassett Boulevard and Stargell Drive Attachment 5: Location Map for Winterberry Drive and Fencerow Drive Attachment 6: Location Map for Michael Boulevard and Calais Street Attachment 7: Proposed Draft By-law Update

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PW 23-19 Attachment 1

Promenade Dr Rushlands Cres

Promenade Dr

Debosky Mantz Cres Crt

Sandgate St Garden St Garden

TH OF E T N OW THE CORPORATION OF THE IO T N A

R O

O F

R SUBJECT INTERSECTION LOCATION

E B TOWN OF WHITBY Y

H T PUBLIC WORKS DEPARTMENT

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PW 23-19 ATTACHMENT 2

Solmar Ave

Samandria Ave Fantail Crt

Rushlands Cres

Catkins Cres Promenade Dr

Debosky Mantz Cres Crt

Sandgate St

Juneau Cres Anderson St Anderson

Lazio St

Fawcett Ave

Toscana Dr

TH OF E T N OW THE CORPORATION OF THE IO T N A

R O

O F

R SUBJECT INTERSECTION LOCATION

E B TOWN OF WHITBY Y

H T PUBLIC WORKS DEPARTMENT

Page 41 of 279 Ct PW 23-19 ORPORA C TIO E N H T O

T W

I N

H O W F

TOWN OFWHITBY Hickory St

Bettley PUBLIC WORKSDEPARTMENT THE CORPORATIONOF

Ct Beech St Beech

Graham Ct

Bradley Dr

Pilkington Cres

SUBJECT INTERSECTIONLOCATION Kilberry Dr Kilberry Robinson Cres

Evensong Dr

Jansen Ct Pheasant St Page 42 of279 Agenda Item#4.3.

Goldfinch St Broughton Ct Attachment 3

Garden St N

Cambridge Agenda Item # 4.3.

PW 23-19 Attachment 4

Rossland Rd E

Henderson Davies Cres Davies

Woodward Dr

Heaver Dr

Bassett Blvd Garden St Garden Stargell Dr

O'connor Dr Rice Dr Rice

PritchardCt

OF THE N TO THE CORPORATION OF THE IO W T N A

R O

O F

R SUBJECT INTERSECTION LOCATION

E B TOWN OF WHITBY Y

H T PUBLIC WORKS DEPARTMENT

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PW 23-19 Attachment 5

N Belfountain Dr Belfountain Watersdown Cres Cres Watersdown Harkness Dr

Winterberry Dr

Fencerow Dr

Ringwood Dr

Macgrotty Ct Neill Ave Tamarisk St Tamarisk

Furrow Dr Ravenview Dr Dr Ravenview

Sable Cres Morning Glory Cres Cres Glory Morning

OF THE N TO THE CORPORATION OF THE IO W T N A R O

O F

P W

R SUBJECT INTERSECTION LOCATION

O H

E B TOWN OF WHITBY

H T PUBLIC WORKS DEPARTMENT

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PW 23-19 Attachment 6

Calais St Bell Dr Bell

Calais St

Jermyn St

Barberry Ct Barberry

Glenmount Ct Glenmount Michael Blvd Michael

TH OF E T N OW THE CORPORATION OF THE IO T N A

R O

O F

R SUBJECT INTERSECTION LOCATION

E B TOWN OF WHITBY Y

H T PUBLIC WORKS DEPARTMENT

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Attachment 7 Town of Whitby By-law # Insert Number Traffic By-law Amendment Being a By-law to Amend By-law 1862-85, being a By-law to Regulate Traffic on the Highways and on Certain Private Roadways in the Town of Whitby Whereas the Council of the Corporation of the Town of Whitby has passed By-law 1862-85 to regulate traffic on highways in the Town of Whitby; And whereas, the Council of the Corporation of the Town of Whitby considers it desirable to amend the provisions of By-law 1862-85; Now therefore, the Council of The Corporation of the Town of Whitby hereby enacts as follows:

1. Schedule(s) 1.1. That Schedule N, Stop Signs, is hereby amended as described in Schedule A hereto attached. 2. Effective Date 2.1. The provisions of this by-law shall come into force and take effect on the passing thereof and at such time as properly worded signs have been erected.

By-law read and passed this 23rd day of September, 2019.

Don Mitchell, Mayor

Christopher Harris, Town Clerk

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Schedule A

Schedule N, Stop Signs, to By-law 1862-85, as amended, is further amended by removing thereto the following:

Column 1 Column 2 Column 3 Intersection Facing Traffic Comments Promenade Drive and Rushlands Northbound and Southbound Stop Crescent/Sandgate Street

Promenade Drive and Debosky Northbound Stop Court

Bradley Drive and Robinson Northbound and Southbound Stop Crescent/Evensong Drive

Bassett Boulevard and Stargell Drive Northbound Stop

Winterberry Drive and Fencerow Eastbound Stop Drive

Michael Boulevard and Calais Street Westbound Stop

Table 1 - Schedule N, further amended by removing thereto the following.

By-law Name: Traffic By-law Amendment By-law # Insert Number Page 2 of 3

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Schedule N, Stop Signs, to By-law 1862-85, as amended, is further amended by adding thereto the following:

Column 1 Column 2 Column 3 Intersection Facing Traffic Comments Promenade Drive and Rushlands Northbound, Southbound, All-way Stop Crescent/Sandgate Street Eastbound and Westbound

Promenade Drive and Debosky Northbound, Eastbound and All-way Stop Court Westbound

Bradley Drive and Robinson Northbound, Southbound, All-way Stop Crescent/Evensong Drive Eastbound and Westbound

Bassett Boulevard and Stargell Northbound, Eastbound and All-way Stop Drive Westbound

Winterberry Drive and Fencerow Northbound, Southbound All-way Stop Drive and Eastbound

Michael Boulevard and Calais Northbound, Southbound All-way Stop Street and Westbound

Table 2 - Schedule N, as amended by adding thereto the following

By-law Name: Traffic By-law Amendment By-law # Insert Number Page 3 of 3

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Town of Whitby Staff Report whitby.civicweb.net

Report Title: Community Safety Zone, EA Fairman Public School

Report to: Committee of the Whole Submitted by: Suzanne Beale, Commissioner of Public Date of meeting: September 16, 2019 Works

Report Number: PW 24-19 Acknowledged by M. Gaskell, Chief Administrative Officer Department(s) Responsible: For additional information, contact: Public Works Department Tara Painchaud, x4937 Dhaval Pandya, x4945

1. Recommendation: 1. That Council approves the Community Safety Zones for EA Fairman Public School as identified in Attachment 1 and Attachment 2. 2. That Council authorize an expenditure of $2,000 to be funded from the Public Works Traffic and Transportation Capital Account, for the installation of Community Safety Zones signage. 3. That Traffic By-law 1862-85 be amended to alphabetically incorporate the proposed changes to Schedule W: Community Safety Zones 4. That Council authorize the Clerk to bring forward the necessary By-law amendment regarding Community Safety Zones on Town of Whitby roadways. 5. That the Public Works Report PW 24-19 regarding designation of Community Safety Zones in the vicinity of EA Fairman Public School be forwarded to the administration of EA Fairman Public School, the Durham District School Board, Durham Regional Police Service and Durham Student Transportation Services for their information and action.

Page 49 of 279 Agenda Item # 4.4.

Report PW 24-19 Committee of the Whole Page 2 of 4

2. Highlights: • Transportation staff recommend designation of a Community Safety Zone adjacent to EA Fairman Public School (see Attachment 1) on Walnut Street and on Palace Street.

• EA Fairman Public School is an elementary school (Kindergarten through Grade 8) with a student population of approximately 230 students.

• A Community Safety Zone allows police services to up to double the fines for offences within the Highway Traffic Act, such as speeding, careless driving, etc.

• Public Works staff will continue to monitor the area surrounding EA Fairman Public School and will recommend additional modifications as needed. 3. Background: In 2015 Public Works staff identified numerous Community Safety Zones within the municipality adjacent to select school/parks, depending on road classification (PW 9-15). The roads adjacent to EA Fairman Public School were not previously identified due to the local road designation. EA Fairman Public School is an elementary school located at the intersection of Walnut Street and Palace Street within Downtown Whitby. The posted speed limit is reduced to 40km/h adjacent to the school. School Crossing Guards are provided at the intersections of Walnut Street and Cochrane Street and Walnut Street and High Street. 4. Discussion: The Highway Traffic Act (HTA) delegates authority to Municipal Councils to designate a part of a highway under its jurisdiction as a Community Safety Zone, if public safety is of special concern on that part of a highway. The HTA requires that the Community Safety Zones must be recognizable to the driver (by regulatory signs) as a special situation that warrants an increased awareness of community activity adjacent to the road right-of-way; thus, the need for an increased awareness for traffic safety. It should be noted that overuse of the Community Safety Zones designation could become counter-productive to the goal of increased traffic and pedestrian safety. As with other roadway regulations, the effect of Community Safety Zone designation on driver behaviour and traffic safety will likely be a function of the level of enforcement provided. The ability of the DRPS to effectively enforce moving offences should be taken into consideration to make a Community Safety Zone a successful traffic safety tool.

Page 50 of 279 Agenda Item # 4.4.

Report PW 24-19 Committee of the Whole Page 3 of 4

In a Community Safety Zone the fines for offences within the Highway Traffic Act (i.e. speeding, careless driving, etc.) may be doubled at the discretion of the police officer. Parking fines can not be increased within a Community Safety Zone. There are currently sixteen (16) roadway sections designated as a Community Safety Zone within the Town of Whitby. These zones are located on an arterial or a collector road and adjacent to a school and/or a major (District) park or open space. It is proposed that Walnut Street between Euclid Street and Cochrane Street, and Palace Street between Walnut Street and Maple Street be identified as a Community Safety Zone (see Attachment 2). The recommendation originates from a residents request for a Community Safety Zone. To be enforced, the Community Safety Zone must have proper signage. The estimated number of signs required to implement the Community Safety Zones is 12. New “Burst” signs would be installed temporarily on the Community Safety Zone signs to alert motorists of the new safety initiative. The cost of implementing the proposed Community Safety Zones is estimated to be in the order of $2,000. Public Works staff have visited the area on numerous occasions and Road Watch has visited the school during dismissal time to advise parents/guardians of the Road Watch program and the process to report aggressive/unsafe driving. 5. Financial Considerations: The cost of Community Safety Zone signage will be funded from the Capital account designated for signage and pavement markings. The cost of signage is expected to be in the order of $2,000 (taxes included). 6. Communication and Public Engagement: Input received to date from the area residents has been considered in this review. 7. Input from Departments/Sources: Operations staff will be installing the Community Safety Zone signage and existing streetlight poles will be used for installation of signs, where feasible. 8. Strategic Priorities: a. Council Goals Public Works staff are committed establishing safe and walkable communities. Report PW 24-19 supports the following Council Goals:

Page 51 of 279 Agenda Item # 4.4.

Report PW 24-19 Committee of the Whole Page 4 of 4

• To remain the community of choice for families and become the community of choice for seniors and job creators; and to focus new growth around the principles of strong, walkable and complete neighbourhoods that offer mobility choices. b. Corporate Strategic Plan and Strategic Priorities The recommendations in this report considered the Corporate Strategic Priorities. Staff are working to increase the effectiveness of the organization and customer satisfaction.

1. People We will foster an inclusive environment where employees can experience job satisfaction and rewarding careers.

Objectives: 1.1. Recognize and celebrate successes 1.2. Create opportunity for employee growth and development 1.3. Empower staff

2. Organization We will be a high performing, innovative, effective and efficient organization.

Objectives: 2.1. Align our organization structure to optimize decision-making and agility 2.2. Enhance our efforts at informing and engaging staff and community

3. Customer (note: customer is defined as both external and internal) We will provide a consistent, optimized and positive customer service experience.

Objectives: 3.1. Measure results in pursuit of ongoing improvements to the customer service experience. 9. Attachments: Attachment 1: Study Area Map Attachment 2: Proposed By-Law Update

Page 52 of 279 Agenda Item # 4.4.

PWHOLL 24-19 Attachment 1 H T IDAY D

R CRES OR STARR AVE N

N STREET

BONACORD AVE ST

HARRIS

BEECH ST FAIRVIEW DR DR FAIRVIEW

MAPLE ST HILLCREST DR DR HILLCREST EA CHESTNUT ST W CHESTNUT ST E FAIRMAN PUBLIC SCHOOL LYNDEVIEW DR

WALNUT ST WALNUT ST

JOHN ST W FERGUSON

AVE AVE ST

LEE AVE LEE

HALLETT AVE AVE HALLETT WARDEN WILSON WILSON WARDEN

COCHRANE COCHRANE STREET MARY ST W

GIFFARD ST

CENTRE ST N ST CENTRE BYRON BYRON N ST

HIGH ST ST HIGH ELM

KENT ST ST KENT ST

WELLINGTON WELLINGTON ST EUCLID ST ST EUCLID DUNDAS STREET ST PALACE WEST

COLBORNE ST WEST

CALAIS ST Legend: Proposed Community Safety Zone Study Area Map

Page 53 of 279 Agenda Item # 4.4.

Attachment 2 Town of Whitby By-law # Insert Number Traffic By-law Amendment Being a By-law to Amend By-law 1862-85, being a By-law to Regulate Traffic on the Highways and on Certain Private Roadways in the Town of Whitby Whereas the Council of the Corporation of the Town of Whitby has passed By-law 1862-85 to regulate traffic on highways in the Town of Whitby; And whereas, the Council of the Corporation of the Town of Whitby considers it desirable to amend the provisions of By-law 1862-85; Now therefore, the Council of The Corporation of the Town of Whitby hereby enacts as follows:

1. Definitions 1.1. That Schedule W, Community Safety Zones, is hereby amended as described in Schedule A hereto attached. 2. Effective Date 2.1. The provisions of this by-law shall come into force and take effect on the passing thereof and at such time as properly worded signs have been erected.

By-law read and passed this 23rd day of September, 2019.

Don Mitchell, Mayor

Christopher Harris, Town Clerk

Page 54 of 279 Agenda Item # 4.4.

Schedule A

Schedule W, Community Safety Zones, to By-law 1862-85, as amended, is further amended by adding thereto the following:

Column 1 Column 2 Column 3 Highway Between Days or Times

Walnut Street Euclid Street and Cochrane Street Anytime

Palace Street Walnut Street and Maple Street Anytime

Table 1 - Schedule W, Community Safety Zones, is further amended by adding thereto the following.

By-law Name: Traffic By-law Amendment By-law # Insert Number Page 2 of 2

Page 55 of 279 Agenda Item # 4.5.

Town of Whitby Staff Report whitby.civicweb.net

Report Title: Update to Traffic By-Law 1862- 85, Schedule A - No Stopping

Report to: Committee of the Whole Submitted by: Suzanne Beale, Commissioner of Public Date of meeting: September 16, 2019 Works

Report Number: PW 25-19 Acknowledged by M. Gaskell, Chief Administrative Officer Department(s) Responsible: For additional information, contact: Public Works Department Tara Painchaud, x4937 Dhaval Pandya, x4945

1. Recommendation: 1. Update Schedule A of the Traffic By-law 1862-85, No Stopping restrictions (August to June, Monday through Friday, 8:00am to 9:00am, 11:15am to 12:25pm and 3:00pm to 4:00pm) on both sides of Nathan Avenue between 30m east of the pedestrian walkway to 30m west of the pedestrian walkway leading to Winchester Public School. 2. That the cost for signage and installation, in the order of $2,500, be funded from the Public Works Traffic and Transportation Capital Account. 3. That Council authorize the Clerk to bring forward the necessary By-law amendment to Traffic By-law 1862-85, for Council approval. 4. That the Clerk be authorized to forward Report PW 25-19 to Winchester Public School, the Durham District School Board, Durham Student Transportation Services and Durham Region Police Service for their information.

Page 56 of 279 Agenda Item # 4.5.

Report PW 25-19 Committee of the Whole Page 2 of 5

2. Highlights: • Area residents in the vicinity of the pedestrian walkway to Winchester Public School and the families that attend the school have expressed safety concerns associated with parking that occurs on both sides of Nathan Avenue during school arrival and dismissal times causing limited visibility at the crossing location.

• As part of the traffic operational review, Town staff have observed sightline issues due to on-street parking activities on either side of the pedestrian walkway on Nathan Avenue.

• Public Works staff propose a time specific No Stopping restriction on both sides (north and south) of Nathan Avenue between 30m east of the pedestrian walkway to 30m west of the pedestrian walkway leading to Winchester Public School to provide visibility for students using the walkway to get to/from elementary school. 3. Background: Public Works Report PW 25-19 originates in response to area residents safety concerns regarding on-street parking and students safety related parking on Nathan Avenue adjacent to a walkway. Winchester Public School Winchester Public School is located at 70 Watford Street, in the Brooklin community. Although the main access is on Watford Street there is a walkway that connects the school to Nathan Avenue. Winchester Public School is a part of the Durham District School Board with approximately 600 students enrolled in Kindergarten through Grade 8. This school participates in the modified school program which has classes starting in August. Nathan Avenue Nathan Avenue is a two lane Local Road that has a 20m right-of-way and an 8.5m pavement width. Nathan Avenue has an urban cross-section with sidewalks on both sides of the street (see Attachment 1). The existing pedestrian connection through the neighbourhood between Carson Park and Winchester Public School provides access for walking school children crossing Nathan Avenue. Visibility concerns associated with vehicles parking too close to the crossing location is a recurrent concern. As part of the review, staff observed parking of vehicles on both sides of Nathan Avenue during school arrival and dismissal times. The parking of vehicles on both sides of the street effectively limits the street to one lane traffic operation and significantly restricts visibility for pedestrians and drivers. The regular on-street parking at this location is due to parents that are choosing to use Nathan Avenue and the walkway connection as a defacto Kiss and Ride.

Page 57 of 279 Agenda Item # 4.5.

Report PW 25-19 Committee of the Whole Page 3 of 5

4. Discussion: Public Works staff are proposing a No Stopping restriction concurrent with the Winchester Public School arrival and dismissal times. The No Stopping restriction is proposed August to June, Monday through Friday, 8:00am to 9:00am, 11:15am to 12:45pm and 3:00pm to 4:00pm, on both sides of Nathan Avenue between 30m east of the pedestrian connection to 30m west of the pedestrian connection leading to Winchester Public School. A No Stopping restriction means that motorist will be unable to stop their vehicles whether occupied or not, except to avoid a collision, obey traffic control device or for emergency services. That is, parents cannot drop-off or pick-up their children within this restricted area. Students and families are encouraged to walk/cycle to/from school but for those that must occasionally drive, the school has a designated Kiss and Ride area off of Watford Street. There is no parking available for parents as the parking lot is reserved for staff and guest teachers. The restriction is proposed during school arrival, lunch and dismissal times as it is recognized that area residents may have visitors that wish to park on the street during outside of these times. Other restrictions such as, no parking within 10 metres of an intersection and the three (3) hour parking limit would apply at all times. The proposed draft by-law to Traffic By-law 1862-85, Schedule A No Stopping is provided as Attachment 2. A painted crosswalk is not proposed at this time as painted lines only cause confusion for both pedestrians and drivers. In order for drivers to be required to stop and yield the right-of-way to pedestrians a Pedestrian Cross-Over (PXO) is needed. A PXO required a full no stopping restriction adjacent to the crossing. As well, there are some challenges at this location due to the misalignment of the walkway north and south of Nathan Avenue. The addition of a PXO would cost approximately $10,000-$12,000. Pedestrians should be crossing when there is an acceptable gap in traffic and drivers are always encouraged to stop for pedestrians waiting to cross the road. As Nathan Avenue is a local road there are gaps available. The availability of acceptable gaps on Nathan Avenue was confirmed through numerous site visits and staff observations. 5. Financial Considerations: The cost to install the No Stopping restriction signage on Nathan Avenue is expected to be in the order of $2,500 (taxes included) and would be funded through the Public Works Traffic and Transportation Capital Account. 6. Communication and Public Engagement: Input received to date from the area residents has been considered in this review.

Page 58 of 279 Agenda Item # 4.5.

Report PW 25-19 Committee of the Whole Page 4 of 5

Residents with municipal addresses in the impacted areas have been notified of Report PW 25-19. 7. Input from Departments/Sources: Operations staff will be installing the No Stopping restriction signage and existing streetlight poles will be used for installation of signs, when possible. 8. Strategic Priorities: a. Council Goals Report PW 23-19 supports the following 2018 – 2022 Council goals of enhancing the safety of local streets and neighbourhoods and increasing citizen’s involvement in strengthening community safety.

1. People We will foster an inclusive environment where employees can experience job satisfaction and rewarding careers.

Page 59 of 279 Agenda Item # 4.5.

Report PW 25-19 Committee of the Whole Page 5 of 5

2. Organization We will be a high performing, innovative, effective and efficient organization.

3. Customer (note: customer is defined as both external and internal) We will provide a consistent, optimized and positive customer service experience.

Objectives: 3.1. Design service delivery around customer needs 3.2. Define clear service levels 3.3. Modernize and improve customer interaction tools 3.4. Provide consistent customer service training for all staff 3.5. Measure results in pursuit of ongoing improvements to the customer service experience. 9. Attachments: Attachment 1: Study Area Map Attachment 2: Proposed Draft By-law Update

Page 60 of 279 . COPYRIGHT 2013 TOWN OF WHITBY 2013 ORTHOPHOTOGRAPHY PROVIDED BY © FIRST BASE SOLUTIONS INC. © TERANET ENTERPRISES INC. AND ITS SUPPLIERS. ALL RIGHTS RESERVED. NOT A PLAN OF SURVEY PW 25-19 RPORA CO TIO E N H T O F T

DISCLAIMER NOTICE

RELIABILITY OF THE USE INFORMATION CONTAINED IN THIS DOCUMENT. CONTAINED IN THIS DOCUMENT. THE TOWN OF WHITBY DOES NOT MAKE ANY REPRESENTATIONS OR DAMAGES OF ANY KIND RESULTING FROM THE USE OF, OR RELIANCE ON, INFORMATION

WARRANTY, EXPRESS OR IMPLIED, CONCERNING THE ACCURACY, QUALITY, LIKELY RESULTS THE TOWN OF WHITBY ASSUMES NO RESPONSIBILITY FOR ANY ERRORS, AND IS NOT LIABLE H

Y T

T W

H O W F TOWN OF WHITBY LEGEND: PUBLIC WORKS DEPARTMENT THE CORPORATION OF

LONETTO ST NATHAN AVE DOWNEY DR PROPOSED NO STOPPING CARSON PARK ST AUGUSTINE DR NATHAN AVENUE STUDY AREA WINCHESTER SCHOOL BROOKLIN PUBLIC OPTIMIST PARK CATHOLIC SCHOOL ST. LEO Page 61 of 279 Agenda Item # 4.5. Attachment 1

WATFORD ST Agenda Item # 4.5.

1. Definitions 1.1. That Schedule A, No Stopping, is hereby amended as described in Schedule A hereto attached.

2. Effective Date 2.1. The provisions of this by-law shall come into force and take effect on the passing thereof and at such time as properly worded signs have been erected.

By-law read and passed this 23rd day of September, 2019.

Don Mitchell, Mayor

Christopher Harris, Town Clerk

Page 62 of 279 Agenda Item # 4.5.

Schedule A

Schedule A, No Stopping, to By-law 1862-85, as amended, is further amended by adding thereto the following:

Column 1 Column 2 Column 3 Column 4 Highway Side Between Prohibited Times or Days Nathan North and 30m east of the August – June Avenue South pedestrian walkway Monday – Friday and 30m west of the 8:00am – 9:00am pedestrian walkway 11:15am – 12:45pm 3:00pm – 4:00pm

Table 1 - Schedule A, No Stopping is further amended by adding thereto the following.

By-law Name: Traffic By-law Amendment By-law # Insert Number Page 2 of 2

Page 63 of 279 Agenda Item # 4.6.

Town of Whitby Staff Report whitby.civicweb.net

Report Title: Committee of the Whole Pilot Update and 2020 Committee, Council, and Public Meetings Schedule

Report to: Committee of the Whole Submitted by: Christopher Harris, Town Clerk Date of meeting: September 16, 2019 Acknowledged by M. Gaskell, Chief Report Number: CLK 09-19 Administrative Officer Department(s) Responsible: For additional information, contact: Office of the Town Clerk Kevin Narraway, Manager of Legislative Services/Deputy Clerk, x2364

1. Recommendation: 1. That Council adopt the Committee of the Whole Standing Committee structure of Council going forward; and, 2. That Council adopt the Standing Committee, Council, and Public Meetings schedule for 2020 as shown in Attachment 1. 2. Highlights: • The Committee of the Whole Standing Committee structure of Council was approved in December 2018 on a one-year trial basis. Due to efficiencies identified through the Committee of the Whole and dedicated Public Meeting structure, it is recommended that this structure be adopted going forward. 3. Background: In December 2018, Council approved adopting a Committee of the Whole Standing Committee structure of Council on a one-year trial basis. This format replaced the previous cycle that included Planning and Development Committee and Operations Committee. The Committee of the Whole structure allows each Member of Council to sit on the Committee, consider the majority of municipal

Page 64 of 279 Agenda Item # 4.6.

Report CLK 09-19 Committee of the Whole Page 2 of 4

business, participate in debate, and make recommendations to Council. At the same time, Statutory Public Planning Meetings were moved to a standalone night, having previously occurred during Planning and Development meetings. 4. Discussion: As of summer 2019, the trial period for the Committee of the Whole and Public Meetings structure has been in place for six meeting cycles. Observations of the new structure through the trial period have identified the following:

• The Committee of the Whole structure provides flexibility to consider matters as they arise, rather than having to wait for a specific meeting type, as was the case under the previous structure.

• The Committee of the Whole structure provides scheduling flexibility for non-urgent matters leading to better balanced meeting agendas and more consistent meeting durations.

• The Committee of the Whole structure has resulted in the majority of debate occurring during Committee meetings, resulting in more efficient Council meetings, with less repeat in discussions.

• The provision of dedicated Public Meetings has improved access for members of the public who wish to speak to planning and development items on Committee of the Whole meeting agendas as they no longer have to sit through lengthy Public Meetings beforehand.

• The Public Meetings format has been efficient, with the ability to hold multiple meetings in one evening.

• Public Meetings provide a dedicated format which makes it clear to those in attendance that no decisions are made by Council at the meetings. Based on experience through the first six meeting cycles of 2019, it is recommended that Council adopt the Committee of the Whole Standing Committee structure of Council going forward. Based on this structure, it is further recommended that Council adopt the Standing Committee, Council, and Public Meetings schedule for 2020 as shown in Attachment 1. 5. Financial Considerations: Not applicable. 6. Communication and Public Engagement: Holding Public Meetings on a separate evening has allowed for a more streamlined process to provide members of the public with information about development applications, and to collect feedback and comments. In an effort to continue to improve communications about Public Meetings, a dedicated webpage has been added to the Town’s website.

Page 65 of 279 Agenda Item # 4.6.

Report CLK 09-19 Committee of the Whole Page 3 of 4

Publication of agendas and minutes under the Committee of the Whole structure occurred on the same timelines and in the same manners as under the former Planning and Development and Operations Committee structure. 7. Input from Departments/Sources: The Senior Leadership team was consulted regarding the recommendations contained in this report. Additionally, the Commissioner of Planning and Development was consulted regarding the Public Meetings process and proposed 2020 schedule. 8. Strategic Priorities: a. Council Goals The recommendation to maintain the Committee of the Whole and dedicated Public Meetings structure is consistent with the following Council Goals:

• To ensure Whitby is clearly seen by all stakeholders to be business and investment friendly and supportive; and to continuously improve the customer experience and the effectiveness and efficiency of communications, service delivery and approvals. b. Corporate Strategic Plan and Strategic Priorities The recommendation to maintain the Committee of the Whole and dedicated Public Meetings structure is consistent with the following Strategic Priorities:

Organization We will be a high performing, innovative, effective and efficient organization. OBJECTIVES:

• Continually improve how we do things by fostering innovation and focusing on making our processes better

• Enhance our efforts at informing and engaging staff and community

Customer We will provide a consistent, optimized and positive customer service experience. OBJECTIVES:

• Design service delivery around customer needs

Page 66 of 279 Agenda Item # 4.6.

Report CLK 09-19 Committee of the Whole Page 4 of 4

• Modernize and improve customer interaction tools 9. Attachments: Attachment 1 – 2020 Standing Committee, Council, and Public Meetings Schedule

Page 67 of 279 Agenda Item # 4.6.

Attachment #1 to Report CLK 09-19 2020 Whitby Council and Committee Meeting Schedule January February March Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa

1 2 3 4 1 1 2 3 4 5 6 7 5 6 7 8 9 10 11 2 3 4 5 6 7 8 8 9 10 11 12 13 14 12 13 14 15 16 17 18 9 10 11 12 13 14 15 15 16 17 18 19 20 21 19 20 21 22 23 24 25 16 17 18 19 20 21 22 22 23 24 25 26 27 28 26 27 28 29 30 31 23 24 25 26 27 28 29 29 30 31

April May June Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa

1 2 3 4 1 2 1 2 3 4 5 6 5 6 7 8 9 10 11 3 4 5 6 7 8 9 7 8 9 10 11 12 13 12 13 14 15 16 17 18 10 11 12 13 14 15 16 14 15 16 17 18 19 20 19 20 21 22 23 24 25 17 18 19 20 21 22 23 21 22 23 24 25 26 27 26 27 28 29 30 24 25 26 27 28 29 30 28 29 30 31

July August September Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa

1 2 3 4 1 1 2 3 4 5 5 6 7 8 9 10 11 2 3 4 5 6 7 8 6 7 8 9 10 11 12 12 13 14 15 16 17 18 9 10 11 12 13 14 15 13 14 15 16 17 18 19 19 20 21 22 23 24 25 16 17 18 19 20 21 22 20 21 22 23 24 25 26 26 27 28 29 30 31 23 24 25 26 27 28 29 27 28 29 30 30 31

October November December

Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa

1 2 3 1 2 3 4 5 6 7 1 2 3 4 5 4 5 6 7 8 9 10 8 9 10 11 12 13 14 6 7 8 9 10 11 12 11 12 13 14 15 16 17 15 16 17 18 19 20 21 13 14 15 16 17 18 19 18 19 20 21 22 23 24 22 23 24 25 26 27 28 20 21 22 23 24 25 26 25 26 27 28 29 30 31 29 30 27 28 29 30 31

Council – 7:00 p.m. – Council Chambers Committee of the Whole – 7:00 p.m. – Council Chambers Public Meetings – 7:00 p.m. – Council Chambers In Camera Council Meetings – 5:30 p.m. (if required) Education and Training Sessions – 5:30 p.m. (if required) Special Council – Summer Meetings (if required) Budget Public Meeting – 7:00 p.m. – Council Chambers Adoption of the 2020 Budget – 5:30 p.m. Council Chambers Weekends and Statutory Holidays – Offices Closed

Page 68 of 279 Agenda Item # 4.6.

January 2020 January 1: Statutory Holiday – Offices Closed January 13: Public Meeting 7:00 p.m. – Council Chambers January 20: In Camera Council Meeting 5:30 p.m. – Committee Room 1 (if required) January 20: Committee of the Whole 7:00 p.m. – Council Chambers January 27: Committee of the Whole 7:00 p.m. – Council Chambers

February 2020 February 3: Education and Training Session 5:30 p.m. (if required) February 3: Council 7:00 p.m. – Council Chambers February 10: Public Meeting 7:00 p.m. – Council Chambers February 17: Statutory Holiday – Offices Closed February 18: Budget Public Meeting – 7:00 p.m. – Council Chambers February 24: Adoption of the 2020 Budget – 5:30 p.m. Council Chambers February 24: Committee of the Whole 7:00 p.m. – Council Chambers

March 2020 March 2: Committee of the Whole 7:00 p.m. – Council Chambers March 9: Council 7:00 p.m. – Council Chambers March 23: In Camera Council Meeting 5:30 p.m. – Committee Room 1 (if required) March 23: Committee of the Whole 7:00 p.m. – Council Chambers March 30: Committee of the Whole 7:00 p.m. – Council Chambers

April 2020 April 6: Council 7:00 p.m. – Council Chambers April 10: Statutory Holiday – Offices Closed April 13: Statutory Holiday – Offices Closed April 20: Public Meeting 7:00 p.m. – Council Chambers April 27: In Camera Council Meeting 5:30 p.m. – Committee Room 1 (if required) April 27: Committee of the Whole 7:00 p.m. – Council Chambers

May 2020 May 4: Committee of the Whole 7:00 p.m. – Council Chambers May 11: Council 7:00 p.m. – Council Chambers May 18: Statutory Holiday – Offices Closed

June 2020 June 1: Public Meeting 7:00 p.m. – Council Chambers June 8: In Camera Council Meeting 5:30 p.m. – Committee Room 1 (if required) June 8: Committee of the Whole 7:00 p.m. – Council Chambers June 15: Committee of the Whole 7:00 p.m. – Council Chambers June 22: Council 7:00 p.m. – Council Chambers

July 2020 July 1: Statutory Holiday – Offices Closed July 20: Special Council – Summer Meeting (if required)

Page 69 of 279 Agenda Item # 4.6.

August 2020 August 3: Statutory Holiday – Offices Closed August 24: Special Council – Summer Meeting (if required)

September 2020 September 7: Statutory Holiday – Offices Closed September 8: Public Meeting 7:00 p.m. – Council Chambers September 14: In Camera Council Meeting 5:30 p.m. – Committee Room 1 (if required) September 14: Committee of the Whole 7:00 p.m. – Council Chambers September 21: Committee of the Whole 7:00 p.m. – Council Chambers September 28: Education and Training Session 5:30 p.m. (if required) September 28: Council 7:00 p.m. – Council Chambers

October 2020 October 5: Public Meeting 7:00 p.m. – Council Chambers October 12: Statutory Holiday – Offices Closed October 19: In Camera Council Meeting 5:30 p.m. – Committee Room 1 (if required) October 19: Committee of the Whole 7:00 p.m. – Council Chambers October 26: Committee of the Whole 7:00 p.m. – Council Chambers

November 2020 November 2: Council 7:00 p.m. – Council Chambers November 9: Public Meeting 7:00 p.m. – Council Chambers November 16: In Camera Council Meeting 5:30 p.m. – Committee Room 1 (if required) November 16: Committee of the Whole 7:00 p.m. – Council Chambers November 23: Committee of the Whole 7:00 p.m. – Council Chambers November 30: Education and Training Session 5:30 p.m. (if required) November 30: Council 7:00 p.m. – Council Chambers

December 2020 December 7: In Camera Council Meeting 5:30 p.m. – Committee Room 1 (if required) December 7: Committee of the Whole 7:00 p.m. – Council Chambers December 14: Committee of the Whole 7:00 p.m. – Council Chambers December 21: Council 7:00 p.m. – Council Chambers December 24: Statutory Holiday – Offices Closed December 25: Statutory Holiday – Offices Closed December 28: Statutory Holiday – Offices Closed

Page 70 of 279 Agenda Item # 4.7.

Town of Whitby Staff Report whitby.civicweb.net

Report Title: Enhanced Live Streaming – Council Chambers

Report to: Committee of the Whole Submitted by: Christopher Harris, Town Clerk Date of meeting: September 16, 2019 Acknowledged by M. Gaskell, Chief Report Number: CLK 10-19 Administrative Officer Department(s) Responsible: For additional information, contact: Office of the Town Clerk Kevin Narraway, Manager of Legislative Services/Deputy Clerk, x2364

1. Recommendation: 1. That Council endorse in principal enhanced live streaming in the Council Chambers; and, 2. That funding for enhanced live streaming equipment in the amount of $70,000 be referred to the 2020 budget for consideration. 2. Highlights: • The Town began live streaming Council and Committee meetings in September 2016 as a one-year pilot project that was made permanent in June 2017.

• Currently, live streaming of Council Meetings, Committee of the Whole Meetings, and Public Meetings is delivered through the use of a single high- definition stationary camera with integrated audio and live closed captioning.

• Enhanced live streaming would feature four automated high-definition cameras with pan/tilt/zoom capabilities, digital on-screen graphics, live closed captioning, and integrated audio. This technology would provide for a more professional live stream service, similar to a television broadcast.

Page 71 of 279 Agenda Item # 4.7.

Report CLK 10-19 Committee of the Whole Page 2 of 4

3. Background: In February 2016, Report CLK 03-16 was presented to Council to authorize a one- year pilot project to live stream Council and Committee meetings. The purpose of establishing a live streaming service was to support the 2014-2018 Council goal of enhancing the transparency and accessibility of Town Hall. Live streaming increases the transparency of decision-making, engages citizens in the business of Council, the operations of the municipality, the decisions that affect them, while also improving access to Town Hall for persons with disabilities. Live streaming was established on a pilot basis in September 2016 and was subsequently made permanent in June 2017. Since establishment, the Town’s live stream has used a single high-definition stationary camera with integrated audio. This basic setup has performed reliably, however technological advancements have resulted in higher performance, more professional camera systems being available on the market. The live streaming service has been reasonably well used. Attachment 1 to this report is a March 2019 memorandum to Council that provided live stream viewership statistics for the period of March 2018 through March 2019. During that time, 36 meetings were live streamed, with an average viewership of 37 viewers per meeting. In addition to those watching live, an additional 54 viewers on average watched meetings after the fact, via the Town’s online repository of archived meetings. Between live and archived viewers, an average of 91 persons watched each meeting. Concurrent to the live stream service provided by the Town, from time-to-time Rogers Television has attended the Council Chambers to air Council Meetings on their station. Coverage by Rogers Television has provided an additional channel to enhance transparency and engagement. However, earlier this year, Rogers Television notified the Office of the Town Clerk that their ability to continue to provide this service had been affected by budgetary reductions and that they were unable to commit to continuing to air Council Meetings on anything more than an infrequent basis. Rogers Television did reach out to the Office of the Town Clerk offering ownership of their existing camera equipment in the Council Chambers due to the age of the camera equipment and their inability to commit to future broadcast schedules. This option was considered, however due to the age and capabilities of the equipment it has not been recommended. The existing Rogers Television equipment consists of four standard definition cameras which have reached the end of their lifecycle due to improved technology and lack of replacement parts. The existing cameras in the Council Chambers are manually operated. One of the primary challenges associated with manually operated cameras is reliance on a human operator, both from the perspective of ongoing operating costs and the inability to air a meeting if an operator is absent. Additionally, the capability of the Rogers’ equipment was deemed substandard as the cameras only support

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standard definition broadcast, a technology that has been superseded by high definition over the past 15 years. 4. Discussion: Given the availability of improved technology and the reduction in Council and Committee Meeting coverage by Rogers Television, it is recommended that Council authorize the replacement of the single high-definition stationary live stream camera with four automated high-definition cameras with pan/tilt/zoom capabilities, digital on-screen graphics, live closed captioning, and integrated audio. This equipment will provide for a live stream broadcast that will enhance viewer experience, similar to the type of professional video quality previously provided by Rogers Television, but improved through the use of high-definition cameras. The automated cameras work in coordination with the integrated audio system. This allows the cameras to be programmed to pan/tilt/zoom when microphones are turned on and off in order to focus on the Member of Council or delegate who is speaking. In the case of multiple microphones in use at a single time, the cameras default to a wide-angle view of the Chambers. Automation and programming capabilities eliminate the need for a human camera operator, ensuring that each Council and Committee Meeting will be broadcast, unaffected by absences. A live stream system similar to what is proposed is currently in use in the City of Hamilton and the Town of Halton Hills. To view samples of the production quality of these meetings, please visit the links below. Please note that it may be necessary to skip ahead in the samples below to get to meeting content. City of Hamilton Live Stream Sample Town of Halton Hills Live Stream Sample 5. Financial Considerations: The expected cost to purchase four automated high-definition cameras with pan/tilt/zoom capabilities, digital on-screen graphics, live closed captioning, and integrated audio, including installation, is expected to be approximately $70,000. Funding in this amount has been included in the 2020 capital budget for Council’s consideration. Ongoing operating expenses associated with the live stream service are unaffected by this equipment upgrade. Alternatively, should Council choose not to proceed with upgrading the Council Chamber’s camera equipment at this time, such capabilities can be incorporated into the design of the Council Chambers in the new Civic Centre. 6. Communication and Public Engagement: Enhanced live streaming equipment will result in a more professional viewing experience for members of the public.

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7. Input from Departments/Sources: The installation of enhanced live steaming equipment will be coordinated in consultation with Technology and Innovation Services. 8. Strategic Priorities: a. Council Goals Enhancing the live streaming service provided by the Town is consistent with the following Council Goals:

• To enhance the transparency and accessibility of Town Hall and ensure effective public consultation and engagement, including greater opportunities for voter engagement through the municipal election process. b. Corporate Strategic Plan and Strategic Priorities Enhancing the live streaming service provided by the Town is consistent with the following Strategic Priorities:

Organization We will be a high performing, innovative, effective and efficient organization. OBJECTIVES: 1.1. Continually improve how we do things by fostering innovation and focusing on making our processes better 1.2. Leverage technology and information to modernize our business practices 1.3. Enhance our efforts at informing and engaging staff and community

Customer We will provide a consistent, optimized and positive customer service experience. OBJECTIVES: 1.4. Design service delivery around customer needs 1.5. Modernize and improve customer interaction tools 9. Attachments: Attachment 1 – March 8, 2019 Memorandum to Council re: Council and Committee Live Streaming, Viewership Statistics

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Attachment #1 to Report CLK 10-19

Memorandum to Council Office of the Town Clerk

To: Mayor and Members of Council

CC: Chief Administrative Officer Acknowledged by M. Gaskell, Manager of Corporate Communications Chief Administrative Officer Town Clerk From: Kevin Narraway, Manager of Legislative Services/Deputy Clerk Date: March 8, 2019 File #: Subject: Council and Committee Livestreaming – Viewership Statistics

Mayor Mitchell and Members of Council,

The purpose of this memorandum is to provide Council with an update on viewership statistics for livestreamed Council and Committee meetings and archived meetings over the past 12 months.

Viewership Statistics for Livestreamed Meetings March 19, 2018 to March 4, 2019

Number of meetings successfully 19 Council/Special Council livestreamed 6 Planning & Development Committee 5 Operations Committee 5 Committee of the Whole 1 Statutory Public Planning Meeting 36 Total Meetings

Average viewership per meeting 37 viewers

Average time viewer accesses the 45 minutes livestream feed

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Meetings with the most number of Committee of the Whole viewers January 14, 2019 – 84 viewers (cannabis opt-in/opt-out) Council January 21, 2019 – 80 viewers (cannabis opt-in/opt-out) Statutory Public Meeting January 28, 2019 – 75 viewers

Location from which viewers accessed Whitby: 41% the livestream feed Toronto: 15% Ajax: 8% Oshawa: 7% Pickering: 6% Ottawa: 2% Hamilton: 2% Other Municipalities in Canada: 14% United States: 3% International: 2%

Browser used to access livestream feed Chrome: 43% Safari: 17% Safari (in-app): 10% Internet Explorer: 8% Android Webview: 8% Firefox: 6% Edge: 5% Samsung Internet: 2% Other: 1%

Viewership Statistics for Archived Meetings March 19, 2018 to March 4, 2019:

Number of meetings successfully 19 Council/Special Council archived 6 Planning & Development Committee 5 Operations Committee 5 Committee of the Whole 1 Statutory Public Planning Meeting 36 Total Meetings

Average viewership per meeting 54 viewers

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Average time viewer accesses the 47 minutes archive feed

Meetings with the most number of Committee of the Whole viewers February 4, 2019 – 342 viewers (Corporate Rebrand Project) Committee of the Whole January 14, 2019 – 179 viewers (cannabis opt-in/opt-out) Special Council April 10, 2018 – 111 viewers (Hydro merger)

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Town of Whitby Staff Report whitby.civicweb.net

Report Title: 2022 Municipal Election – Method of Voting

Report to: Committee of the Whole Submitted by: Christopher Harris, Town Clerk Date of meeting: September 16, 2019 Acknowledged by M. Gaskell, Chief Report Number: CLK 11-19 Administrative Officer Department(s) Responsible: For additional information, contact: Office of the Town Clerk Christopher Harris, Town Clerk

1. Recommendation: 1. That further to By-law #7241-17 authorizing the use of optical scan vote tabulators for municipal elections in the Town of Whitby, Council hereby reaffirms the use of vote tabulators for the 2022 Municipal Election; 2. That Council hereby authorizes an alternative voting option of Special Mail-in Ballots for the 2022 Municipal Election and directs the Clerk to bring forward the necessary by-law; 3. That the Clerk and Treasurer shall have the authority to procure goods and services and enter into contracts and agreements necessary for the conduct of elections, in order to ensure the timely conduct of elections; and,

4. That the Clerk be directed to update the Delegation of Powers and Duties Policy G 020 accordingly. 2. Highlights: • By-law #7241-17 established the use of optical scan vote tabulators for municipal elections in the Town of Whitby in accordance with Section

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42(1)(a) of the Municipal Elections Act, 1996 which provides Council with the authority to authorize the use of vote counting equipment. • Special mail-in ballots provide additional voting options to non-resident electors and electors with disabilities who may have difficulty travelling to a polling location.

• An exit survey of voters during the 2018 Municipal Election indicated that voter satisfaction in Whitby is very high (98%) which supports the recommendation to maintain the same voting method. 3. Background: The 2022 Municipal Election will take place on Monday, October 24, 2022. The Municipal Elections Act, 1996 (MEA) provides that the Council of a municipality may pass by-laws authorizing the use of vote counting equipment and an alternative voting method that does not require electors to attend a voting place in order to vote. Since 1997, and for the past 7 general municipal elections, the Town of Whitby has used optical scan vote tabulators with paper ballots. Starting in 2014 and continuing for the 2018 election, electors had the opportunity to vote-anywhere due to the Town deploying a live Voters’ List system that allowed for cloud management of the Voters’ List with real time updates. Additional information on the administration of the 2018 Municipal Election including the voter exit survey results can be found in Staff Report CLK 04-19. 4. Discussion: The four main election methods deployed by municipalities in Ontario are as follows: - Paper ballot with manual counting - Paper ballot with vote aggregation by optical scan vote tabulators - Vote-by-mail

- Internet and telephone voting

Occasionally a municipality will combine two or more of the above voting methods to give electors additional opportunities to cast a ballot. For instance, in the 2018 Municipal Election, the Town of Whitby offered electors a Special Mail-in Ballot (SMB) as an alternative voting method.

The following chart published by the Association of Municipalities Ontario offers perspective on the use of voting methods across the province in the 2018 general municipal elections.

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It is recommended that Whitby continue for the 2022 election to provide for vote- anywhere and in-person voting with vote aggregation using optical scan vote tabulators, along with offering a Special Mail-in Ballot as an alternative voting method. In order that this recommendation can be assessed against the other election methods that exist, all four election methods noted above are further explained below. 4.1 Option 1 - Paper Ballot with Manual Counting The default election method contemplated under the MEA is paper ballots with manual counting by election officials. This is the method used in federal elections in Canada, and until 2018, in Ontario provincial elections. However, for both those levels of government, ballots only list candidates in the elector’s electoral district, and an elector is required to only select one candidate, thus providing for a straight forward vote counting exercise at the end of the voting day.

Large urban municipalities have generally abandoned manual counting due to the time and effort involved in counting votes on a composite ballot after the close of polls at 8:00pm on Election Day. The composite ballots in Whitby in 2022 will include races for regional chair, mayor, regional councillors, ward councillor, and school trustee. In 2018, the Town had 20 ballot faces given its 4 wards and the 5 types of ballots required per ward owing to the 4 school boards and option to have no school support.

Manually counting each composite ballot would be a labour intensive process, and one that is subject to human error and the requirement to interpret a vote given

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the different ways an elector could choose to mark their ballot. Removing subjectivity of the vote count through electronic tabulation, be it vote tabulators or internet voting, can provide greater certainty of results, remove the possibility of human error, and improve confidence in election outcomes. In terms of the elector voting experience, there would be little difference between a manual count and tabulators in that electors would still attend a voting location to complete their ballot; however, one of the main differences between the two methods arise when it comes to timeliness and certainty of results. 4.2 Option 2 – Paper Ballot with Vote Tabulators Optical scan vote tabulators have been widely adopted by Ontario municipalities to aggregate votes cast. The Town of Whitby has used vote tabulators since 1997 for the past 7 general municipal elections. While some municipalities have purchased tabulators outright, the Town of Whitby has chosen to lease instead of own tabulators since the 2014 Election, which has eliminated the need to securely store, maintain and periodically replace the devices. Each election, Town Staff work with the chosen tabulator supplier to ensure that each individual tabulator being utilized by the Town is programmed to accept Whitby’s composite ballots and identify votes based on marks the elector makes that meet a certain threshold. The threshold is extensively reviewed and deemed appropriate through logic and accuracy testing conducted by the Town Clerk prior to the election. During advance vote and on Election Day, electors at the polling location will provide their marked ballot to a Vote Tabulator Operator who will feed the ballot into the vote tabulator. At that time, the vote tabulator has functionality to determine if an elector has left their ballot blank, over-voted, created an ambiguous mark, or if the DRO initials are missing, and provide the elector with an opportunity to cancel their ballot and receive a new ballot. Versus a manual count, this added functionality ensures every opportunity for the elector’s vote to be counted. As vote tabulators are not connected to the internet, and are securely stored and rigorously tested prior to use during the election, the security risks associated with the equipment is generally low. While the software responsible for the aggregation or publishing of results generated by vote tabulators could subject to cyber threats despite the safeguards in place to prevent such instances, retention of the original paper ballots always provides a guarantee that results could be verified should an issue arise.

4.3 Option 3 – Vote-by-Mail

For rural municipalities, especially those with many seasonal residents, vote-by- mail was a very popular election method prior to the advent of internet voting. 2018 was the first time Whitby offered a vote-by-mail option as a special ballot,

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which was specifically targeted to electors with disabilities or electors who were not available to attend a poll during the advance vote or on Election Day. The program had reasonable uptake with 102 kits being requested and 97 kits returned. Managing Special Mail-in Ballots was done through existing election technology the Town had procured, such as the Voters’ List management and vote tabulator solutions, thus incurring minimal additional costs and efforts when offered on an as requested basis. If a municipality is exclusively using vote-by-mail, every elector on the Voters’ List would be mailed a voting kit with a return envelope, declaration form, ballot and ballot secrecy envelope. The elector signs the declaration form and then completes their ballot, inserting the ballot into the secrecy envelop provided to ensure that a name cannot be associated with a vote. Upon the municipality receiving the return envelope, the declaration form is processed, the elector struck from the Voters’ List and the ballot inside the ballot secrecy envelope placed in a ballot box for counting after the close of vote on Election Day. The Special Mail-in Ballot process operates in the same way as described above, except an elector needs to request a kit by submitting a request form to the Office of the Town Clerk within a designated period. 4.4 Option 4 – Internet and Telephone Voting Internet voting offers a convenient way for electors to cast their ballot from any device that has access to the internet. Internet voting meets the demands for accessibility, convenience and the desire to engage and enfranchise electors. Internet voting has become increasingly popular across municipalities in Ontario as shown in the graphic below produced by TVO.

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It should be noted that there is some discrepancy in the number of municipalities that use internet voting, as the Ministry of Municipal Affairs does not track this information and associations such as Association of Municipalities Ontario (AMO) and the Association of Municipal Managers, Clerks, and Treasurers of Ontario (AMCTO) rely on voluntary reporting. In an independent study completed by Professor Alexander Essex of Western University, it was found that 177 municipalities used internet voting in 2018. Regardless of the precise number, the fact that use of internet voting has increased in Ontario municipal elections since 2003 is not in dispute. In 2016, the Town of Whitby piloted internet and telephone voting for the first time in the North Ward 1 By-election. From the survey results compiled through an online exit survey, there was a very positive response to internet voting from the North Ward electors. The 2016 internet voting survey results can be found as Attachment 1 to Staff Report 21-16. Internet voting can be offered with different levels of supervision, either remotely, at a terminal at a voting location, or at an unsupervised kiosk in a mall or other public space. Remote internet voting, being where electors do not need to travel to a polling location to cast their ballot online, can be offered as either a one-step or two-step process. Typically, the two-step process is employed by municipalities that offer internet voting as a supplementary method to a paper ballot process, whereas a one-step is offered when internet voting is the primary election method. While internet voting though a kiosk or at a terminal in a voting location is a possibility, this option has had low uptake as it does not realize the convenience factors associated with internet voting remotely. In a one-step process, electors receive a voter information package with Elector ID and PIN numbers. Electors visit a webpage and use their ID and PIN, along with their year of birth to access and cast their ballot. Year of birth is the preferred validation as it is information municipalities have access to through the Voters’ List. A two-step registration process requires voters to pre-register to obtain the necessary credentials in order to access their ballot. There are various forms of a two-step registration; however, the process typically involves mailing out information packages to electors that include an elector identification number, information about the voting process, and a secure website address where the elector must go to register. Once the voter has registered, they are then sent a personal identification number (PIN) by way of a secure email. Upon receipt of the PIN, the voter can access the voting site and using both the information in the information package and the PIN number, access their ballot.

As noted above, some municipalities have chosen to offer internet voting as a supplementary method to in-person voting. Doing so offers electors the choice to vote in-person with a paper ballot or cast their ballot online, either remotely or at a polling location depending on what option the municipality selects. While more

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choice for electors is generally a positive, the downside of offering both paper ballot and internet voting is the additional resources and costs incurred to run two election methods. As noted in the Section 5 below dealing with financial considerations, substantial additional costs associated with vendor, security verification and resource requirements can result from offering both paper ballot and internet voting. Although internet voting offers many benefits, there are also potential risks associated with this voting method. It is important to note and acknowledge that all internet voting platforms may be subject to cyber security threats. While it can be argued that internet voting is subject to the same or similar risks incurred by consumers who do business or banking online, internet voting should be subject to a higher security standard and more rigorous safeguards. While hacking of online banking would typically result in financial losses or theft of personal identity, thus creating certain hardships for the individual, the hacking of a voting system would have broader societal consequences including the erosion of trust in government institutions to administer fair and secure elections. While internet voting vendors may tout the security of their platform, we know that in an increasingly sophisticated digital world, there are few organizations that are safe from cyber threats. Large governments and Fortune 500 companies may spend millions of dollars a year on digital security, but can still find themselves subject to data breaches. Given that internet voting vendors do not likely dedicate more resources to cyber security than most large multinational companies and large governments, one could reasonably assume that their platforms are no more or less secure than online banking or other supposedly secure data repositories. In addition to security concerns noted above, internet voting vendors have experienced past issues with voting systems remaining open during high volume periods on Voting Day. In 2010 and 2018, separate internet voting vendors experienced problems with their system near the close of polls that resulted in electors being unable to cast their vote for a period of time. Clerks responsible for impacted elections had to extend the voting period from anywhere to a few hours to 24 hours. While it is hoped that vendors have learned from these issues and resolved the associated problems, it can be difficult for election administrators to plan for and test all the possibilities of what can go wrong with an online system given the limited resources at their disposal. Further, the occurrence of these past issues raises questions about vendors’ readiness to offer a reliable and secure online voting experience.

While the case for internet voting as a convenient voting method that improves accessibility is strong, there are too many uncertainties and risks associated with the voting method for staff to recommend its use for the 2022 election in Whitby. 4.5 Recommendation – Vote-Anywhere, Optical Scan Vote Tabulators and Special Mail-in Ballots

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Based on the success of using optical scan vote tabulators for the past 7 municipal elections, and the high satisfaction rate from the 2018 voter exit survey that indicated 98% of Whitby voters were satisfied with the paper ballot voting method, it is recommended that Whitby use the same election method in 2022. The vote-anywhere aspect has also proven to be successful and popular with voters. Having used the data from the 2014 Election, Staff were able to more strategically staff and locate voting locations to deal with the peak voting period between 5pm and 8pm on Election Day. Data and feedback from voter exit survey from the 2018 election in addition to voter turnout data per location will help further refine the placement and staffing of voting locations in 2022. While the Special Mail-in Ballot did not receive a lot of uptake in 2018 being the first time the program was offered, it is hoped that increased candidate and voter familiarity in addition to plans to improve communications will increase uptake in 2022. Special Mail-in Ballots are being recommended given the limited costs of providing this alternative voting option and the convenience it affords to certain electors, especially those who will be out of town during the in-person voting period or have a disability that prevents them from attending a voting location. In 2016, Elections Ontario issued a request for proposals for optical scan vote tabulators which included provisions for a leasing program for tabulators to other electoral authorities. After a competitive bid process, Elections Ontario awarded the tabulator contract in early 2017 to Dominion Voting Systems. The Town of Whitby took advantage of this leasing program for the 2018 Municipal Election. Subject to Council’s approval of the recommendation to use vote tabulators in 2022, and delegate authority to the Town Clerk to procure the necessary election goods and services, the Town will again use the Elections Ontario tabulator lease program and contract with Dominion to provide configuration services. 4.6 Ranked Ballots Starting in 2018, municipalities had the option to pass a by-law to implement ranked ballot elections. Ranked ballot voting is a preferential voting method, in which voters can choose and rank their top three candidates in order (1st, 2nd, 3rd). Also referred to as "instant-runoff voting", a winner is declared when a candidate receives 50 percent plus one or more of the total votes cast. The decision to move to a ranked ballot system can be made prior to each election. In 2018, two Ontario municipalities put a referendum question on the ballot related to ranked ballot voting. The City of Cambridge asked, “Are you in favour of the City of Cambridge using a ranked ballot system for the 2022 municipal election?” The results of the referendum in Cambridge were 13,488 votes in favour of implementing a ranked ballot system and 10,499 in opposition. With a total voter turnout of 32.24 percent, only 27.27 per cent of eligible voters voted on the ranked ballot question. The City of Kingston asked, “Are you in favour of using Ranked Ballot Voting to elect Mayor and District Councillors in the City of Kingston?” 20,642 voted in favour while 12,161 voted in opposition. With a total voter turnout of 34,529, only 39.23 per cent of eligible voters voted on the question. To be

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binding, at least 50 per cent of all eligible voters must vote on the question. Kingston Council chose to implement ranked ballots for 2022, while Cambridge directed Staff to report back with a review of ranked ballots for 2022. The City of London was the first and only municipality in Ontario in 2018 to use ranked ballots. London identified significant impacts on election administration in terms of planning, communications, voting location staffing, results reporting timelines and budget as a result of implementing ranked ballots. London indicated that moving to a ranked ballot system increased the costs of administering their election by $515,446, for a total election administration cost of $1,779,149. The most significant statistic is the number of voters who participated in the option to rank up to three candidates. London reported that in 2018, 30% of voters ranked only one candidate, leaving their other choices blank. 22% of voters ranked a first and second choice only and 47% ranked three candidates. 5. Financial Considerations: The 2018 Municipal Election cost the Town $327,000. Regardless of which of the 4 elections methods described in this report are chosen, the 2022 Municipal Election will cost approximately $375,000 to $425,000 due to inflationary pressures and anticipated population growth. The Office of the Town Clerk has budgeted an annual contribution of $104,590 towards the election reserve, making a total of $418,360 available for the 2022 election. Combining internet voting with in-person voting would add substantial additional costs to the administration of the election in the order of $200,000. These costs result from effectively requiring the municipality to run two voting methods simultaneously which would require additional vendor solutions, third party security testing and other election resources. Adopting ranked ballot voting would also add substantial costs, which could be expected to nearly double the cost of Whitby’s election given London’s 2018 experience. As the Clerk has ultimate authority for the planning and conduct of the election per the Municipal Elections Act once Council has determined an election method, it is recommended that authority to procure goods and services and enter into agreements for that purpose be delegated to the Clerk and Treasurer. Should Council approve the recommendation to use vote tabulators and offer Special Mail-in Ballots, the Clerk would work with Elections Ontario to lease tabulators and enter into an agreement with Dominion Voting Services for services related to the programming and support of the tabulators. Utilized in 2018, the Elections Ontario tabulator lease program resulted in approximately $5,000 in savings, a number that will likely be higher in 2022 given the greater number of tabulators that will be required as a result of population growth.

Further, the Clerk would be required to enter into an agreement with a vendor for Voters’ List maintenance, voter notification card printing and ballot printing. Vendors retained to support the conduct of the election are determined on the basis of their ability to work with other vendors, quality and security of products

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offered, and price. Where circumstances permit, a competitive procurement process would be undertaken. 6. Communication and Public Engagement: For the 2018 to 2022 Term of Council, the following Council Goal was adopted: • To enhance the transparency and accessibility of Town Hall and ensure effective public consultation and engagement, including greater opportunities for voter engagement through the municipal election process. For the 2018 Municipal Election, the Office of the Town Clerk worked closely with Corporate Communications to create a robust voter engagement and information strategy. Efforts by the municipality in this regard are often complimented by the efforts of candidates to speak with electors, ensure electors are on the Voters’ List, and provide information on opportunities to vote. While feedback from the 2018 election and the establishment of Council’s above noted goal spoke to these traditional efforts, there was also a desire to investigate voter engagement though debates or candidate information sessions. Staff have begun the process of exploring opportunities for greater voter engagement in the lead-up to the 2022 election, including initiating discussions with the Whitby Chamber of Commerce. Municipalities have typically relied on community organizations to run candidate information sessions or candidate debates, and Whitby has benefited from the Chamber of Commerce facilitating these events in the past. As some organizations have highlighted the logistics and costs as being prohibitive to running candidate debates, the Office of the Town Clerk will explore opportunity to potentially remove some of these barriers, either by offering a grant program to qualifying organizations or providing Town facility space at no or reduced cost. Further exploration regarding candidate debates and information sessions must be mindful of the requirements in the Municipal Elections Act that prohibit a municipality from contributing to candidates’ campaigns. Also, the Town, as the institution responsible for the conduct and integrity of the election, must be seen to be impartial at all times. The Town Clerk will be working closely with the Town Solicitor to ensure that whatever enhanced voter engagement opportunities are identified for 2022 are in compliance with the Municipal Elections Act.

7. Input from Departments/Sources: The Office of the Town Clerk works closely with all departments to ensure the success of the election. The Accessibility Advisory Committee will be consulted when drafting the 2022 Municipal Election Accessibility Plan and as part of the election preparation. 8. Strategic Priorities: a. Council Goals

Adopting this Report’s recommendations will further the following Council Goals:

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• to ensure all municipal affairs are conducted with professionalism and integrity. • To continue the Whitby tradition of responsible financial management and respect for taxpayers; and to understand the importance of affordability and sustainability to a healthy, balanced community. b. Corporate Strategic Plan and Strategic Priorities This Report’s recommendation aligns with the following objective of the Corporate Strategic Plan:

• Continually improve how we do things by fostering innovation and focusing on making our processes better • Design service delivery around customer needs 9. Attachments: Not applicable.

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Town of Whitby Staff Report whitby.civicweb.net

Report Title: Annual Insured Claims Report

Report to: Committee of the Whole Submitted by: Ken Nix, Commissioner of Corporate Date of meeting: September 16, 2019 Services/Treasurer x 4314

Report Number: CS 33-19 Acknowledged by M. Gaskell, Chief Administrative Officer Department(s) Responsible: For additional information, contact: Corporate Services Department Tina Peterson, Risk Management and Insurance Analyst x 2368

1. Recommendation: 1. That report CS 33-19 of the Commissioner of Corporate Services/Treasurer be received as information. 2. Highlights: • As per the Town’s claims handling policy and Insurance Reserve Fund policy the purpose of this report is to provide Council a summary of the insured claims activity for the year, the status of open claims and the year- end balance of the Insurance Reserve Fund.

• The Town renewed its insurance policies for July 1, 2019 to June 30, 2020 with Frank Cowan Company.

• The Town continues to benefit from being a member of the DMIP by continuing to receive price stability and protection against rising insurance costs.

• Most recently council approved the DMIP surplus which the Town used to fund risk management initiatives for technology services and for procuring insurance for new and emerging risks such as Cyber liability.

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3. Background: The Town is a member of the Durham Municipal Insurance Pool (DMIP) which consists of seven of the other Area Municipalities and the Region of Durham in an integrated insurance program in order to achieve a greater control over the insurance coverage and costs. The DMIP administers the insured claims for all members. The Town is responsible for claims within its local deductible of $10K per claim and shares in the pool claims that are beyond the local deductible of pool members and within the pool’s deductible of $500K. Claims beyond $500K are insured by the Frank Cowan Company (Cowan). By agreeing to share the claims and expenses of the integrated insurance, pool members achieve a more stable supply of insurance coverage to meet the unique requirements of the municipal marketplace 4. Discussion: Insurance Renewal for 2019/2020

The DMIP renewed its insurance policies for July 1, 2019 to June 30, 2020 with Cowan. The overall net cost to the Town for insurance coverages has resulted in an increase of 4.8%. This increase reflects the conditions in the broader marketplace. The DMIP also rebases the allocation of pool member contributions every four years. The analysis considers the exposures (i.e. population and assets) of each municipality and their respective claims history. The Town’s exposures have been relatively stable, however as the Town’s population and assets grow, so too will the expected number of claims. Given the Town’s anticipated growth, it is vital that staff across the organization continue to work together to identify and prevent situations that may lead to negative consequences and cost increases and continue to strengthen the Town’s risk mitigation strategies.

Cyber Liability Cyber breaches in Canada continue to rise and public entities are not exempt from that risk. According to Cowan, ransomware is the most common type of cyber risk. A successful ransom aware attack can impact an organization’s ability to complete the most basic of tasks. To help mitigate this risk, the Town was successful in obtaining Cyber liability coverage. In addition, Council approved $565K, funded from the DMIP surplus received in 2017, be used to fund risk management initiatives identified in report CS 11-18 of the Corporate Information Technology Strategic Plan (CITSP) as follows:

• Implementation of comprehensive network monitoring solutions

• Implementation of an Internet Protocol management solution

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• New backup solution

• Various security related enhancement

• Additional software licensing

Joint and Several Reform Update • In Ontario, the governing statute for joint and several liability, also known as the 1 per cent rule, is the Negligence Act 1990. This legislation directs that a person injured by two or more at fault parties may collect his/her full damages from one of the at fault parties regardless of the proportion of their liability. This has serious consequences for municipalities.

• Severe injuries are most common in road maintenance cases. People that become injured in road accidents bring actions against the at fault driver of the vehicle as well as the municipality, often alleging poor road maintenance or design.

• For over a decade the DMIP has participated in a number of initiatives to solicit change to joint and several liability for municipalities and relieve this unfair burden.

• In 2014, the Ontario government (Attorney General’s Office) was considering the Saskatchewan model of proportionate joint and several liability. Unfortunately, the Ontario Provincial election resulted in a newly appointed Attorney General and the proposal was abandoned.

• At the ROMA conference in early February 2019, the Premier announced a provincial commitment to look at the issue of joint and several liability. A member of the DMIP is on the task force and has been asked to put forward recommended approaches for the AMO Board to consider and contribute to the government’s consultation. Insured Claims The Town of Whitby receives claims from individuals most generally as a result of damage to private property or bodily or personal injury. A claim is submitted when the individual who suffered the loss or the injury believes that the loss was a result of some negligence on behalf of the Town or its employees. The Town carries insurance through the DMIP to protect its employees, volunteers and officers from such claims in addition to insuring Town owned property. The types of insured claims include:

• Motor Vehicle Accident – includes claims relating to winter road maintenance, pothole claims, road debris

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• Operations Action/Inaction – includes claims relating to damage to property in the course of performing work e.g. utility cable/wires during construction, projectiles from work equipment, trees falling

• Falls – includes claims for trips and falls or slips and falls on municipal property e.g. sidewalks, parking lots, trails, inside facilities and at playgrounds

• Professional Error – claims for financial losses due to error, misstatement or omission e.g. negligence in building inspection, zoning, planning, passing by-laws, failing to enforce by-laws

• Automobile – includes claims from third parties relating to property/bodily injury and property coverage for Town owned vehicle damage

• Property – claims for damage to Town owned insured property e.g. facilities The insurance coverage includes costs incurred in responding to a claim including investigation and defense and in instances where it is determined the Town is liable for damages, any third party awards/settlements. The Town of Whitby’s top five insurance risks is based on an analysis provided by the DMIP that examined the total number of claims and claims costs incurred from July 1, 2013 to June 30, 2018 and ranked them based on severity (financial impact of claims) and frequency (number of claims) and they are: 1. Falls 2. Operations Action/Inaction 3. Motor Vehicle Accidents 4. Property 5. Automobile (Town Owned)

Claims Paid within Deductible The Town is responsible for the first $10K on each claim. In 2018, the Town has paid out a total of $121K in deductible expenses related to insurance claims. The type of expense and claim type are as follows:

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Expense Type

External legal and External Adjuster Fees - 37% Investigation Charges and Other Expenses - 47% Third Party Settlements - 16%

Claim Type

Operations Action/Inaction - 41% Automobile (Town Owned) - 36% Property - 13%

Falls - 10%

Open Claims at Year End The number of insurance claims open at the beginning of the year was 53; 73 new claims were received as Whitby claims; 93 claims were closed in 2018; and 3 claims previously closed were re-opened, resulting in an ending number of 36 open claims at year end. The 36 claims relate to policy years 2010 to 2018 and are categorized by type as follows:

Total Motor Operations Falls Professional Automobile Property Vehicle Action/Inaction Error Accidents

36 4 7 20 2 1 2

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Insurance Reserve Fund The Town’s insurance reserve fund, as per policy, is used to fund expenditures beyond the budgeted deductible amounts, claims payments in excess of insurance coverage, payments required under the Town’s indemnification by-law and additional insurance/risk management related expenditures/studies. At the end of 2019 the projected uncomitted balance of the Insurance Reserve Fund is at the target balance of $1.3 million Risk Management Strategies The Town of Whitby is continuing to work with the DMIP on mitigating the Town’s insurance related risks as follows: • Ensuring procedures, training, documentation including the use of AVL/GPS technology complies with MMS (Minimum Maintenance Standards)

• The Town has an annual sidewalk inspection program

• The DMIP conducts annual inspections of a number of Town facilities to identify any building and property hazards. A written risk control inspection report including recommendations is provided and staff follow up on completing recommendations

• Review agreements, certificates of insurance, programs and procedures i.e. include insurance and indemnity clauses to transfer risk to the appropriate party

• The DMIP and Frank Cowan provided the following risk management seminars:

o Drones and the Legalization of Marijuana o Fraud Prevention and Fraudulently Induced Transfers o The New Construction Act o Preparing for Examinations for Discovery o Managing Risk in Construction Contracts • In addition, the Town conducted two workshops regarding Personal Privacy and MFIPPA for 84 staff.

• Staff regularly review claims to implement lessons learned moving forward to prevent similar events from occurring, primarily improving documentation of work performed i.e improvements made to the Town’s sidewalk inspection program to include fall offs, created an automated report in My Whitby to meet weather monitoring criteria as per MMS

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• Procuring additional coverages including cyber liability, electronic funds transfer and volunteer accident benefit coverage

• The Town has a facility user liability program. The facility user liability insurance program minimizes risk to the facility rental user and the municipality by providing insurance for those who do not have the required insurance.

• Obtaining insurance coverage for specific programs and events including the Whitby Garden Tour, the Town’s Adult Hockey League Program, Doors Open and various amateur performers at Town events. 5. Financial Considerations: The estimated annual cost of claims within the local deductible are included in the Town’s Corporate Revenue and Expenses section of the annual operating budget. In 2018 there was a positive variance of $49K and due to the reserve fund being at the target balance this formed part of the general surplus in 2018. The 2019 budget is $170K and based on year to date experience is projected to be fully utilized. The 2019 insurance renewal increase is within the 2019 budget funding. 6. Communication and Public Engagement: N/A 7. Input from Departments/Sources: Claims and in particular those going through the litigation process require considerable staff resources. Staff resources from across the organization are involved in the investigation of claims, preparing and participating in the claims litigation process and identifying and implementing lessons learned. Further, staff work together to mitigate the Town’s risks by establishing/updating policies and procedures and keeping records that demonstrate such and ensuring appropriate transfer of risk when procuring goods and services and permitting Town facilities and special events. 8. Strategic Priorities: a. Council Goals

• To ensure all municipal affairs are conducted with professionalism and integrity.

• To enhance the transparency and accessibility of Town Hall and ensure effective public consultation and engagement.

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b. Corporate Strategic Plan and Strategic Priorities 1. Organization We will be a high performing, innovative, effective and efficient organization. OBJECTIVES: 1.1 Continually improve how we do things by fostering innovation and focusing on making our processes better 1.2 Leverage technology and information to modernize our business practices 1.3 Develop and utilize comprehensive business and financial planning processes 1.4 Align our organization structure to optimize decision-making and agility 9. Attachments: N/A

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Town of Whitby Staff Report whitby.civicweb.net

Report Title: Prudent Investor Standard for Municipal Investments: Options Analysis

Report to: Committee of the Whole Submitted by: Ken Nix, Commissioner, Corporate Date of meeting: September 16, 2019 Services & Treasurer

Report Number: CS 46-19 Acknowledged by M. Gaskell, Chief Administrative Officer Department(s) Responsible: For additional information, contact: Corporate Services Department Duane Ramkissoon, Investment & Financial Analyst x2353

1. Recommendation: 1. THAT Report No. CS 46-19 Prudent Investor Standard for Municipal Investments: Options Analysis of the Commissioner of Corporate Services/Treasurer be received for information. 2. THAT Council endorse Town staff working with ONE Investment to establish a new Joint Investment Board and implement the Prudent Investor regime, including a new Investment Policy Statement for the Town and any other related agreements. 3. THAT staff report back on the new Investment Policy incorporating the Prudent Investor opportunities prior to bringing forward a final recommendation related to adopting a Prudent Investor by-law.

2. Highlights: On April 15, 2019, Council instructed staff to undertake further due diligence and report back with a recommendation on adopting the PI regime (CS 19-19 Prudent Investor Standard for Municipal Investments: Next steps).

Investing under the Municipal Act, 2001 (the “Act”) and O. Reg. 438/97 (the “Regulation”) allows the Town to make investments under a prescribed list of

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Report CS 46-19 Committee of the Whole Page 2 of 12 securities, commonly referred to as the “Legal List”, and the recently added Prudent Investor (“PI”) regime. The Legal List includes many constraints and conditions that limit or restrict municipal investing in an attempt to curtail risk. It focuses on Canadian markets and provides access to marginally better returns than holding cash deposits at the bank. The PI standard places no restrictions on eligible securities but does require an investor to construct an investment portfolio with the care, skill, diligence and judgment of a prudent investor. It removes restrictions on municipal investments but also includes a new governance model to control risk. Control and management of money not required immediately under the new PI regime is to be given to a municipal service board, referred to as an Investment Board (“IB”) or a Joint Investment Board (“JIB”) for investment on behalf of the municipality. The City of Toronto is the only municipality that has adopted the PI model to date. This report examines the options available to the Town of Whitby for adopting the Prudent Investor regime. It represents the second of four deliverables which are essential to establish & join the ONE Joint Investment Board (“ONE JIB). Next steps include the approval of a new Investment Policy Statement (IPS) and the passing of an authorizing by-law to establish the ONE JIB. For municipalities, as stewards of public funds, preservation of capital must be balanced with the need for returns. Municipalities are under tremendous pressure to maximize revenues while minimizing property tax increases and as municipalities seek to diversify revenues, investment income becomes an important alternative revenue stream. For example, revenues can be structured to match expected capital expenses by aligning investment terms with asset management plans for repair, replacement and creation of local infrastructure.

After further due diligence and consideration of the legal and financial implications of pursuing PI status, staff recommend pursuing participation as a founding member of a ONE JIB for the following reasons:

• Opportunity for improved Risk Adjusted Returns • Decreased portfolio risk by diversifying Investments across Asset Classes & Geographies • Professionally Managed Investment Funds • Access to external Investment Expertise • JIB actions are governed by the Town’s Investment Policy • Lower set-up costs & ongoing expenses versus creating an IB • Access to Higher-Yield Securities • Founding member benefits (lower fees, JIB representation)

3. Background: ONE Investment is a not for profit corporation formed by CHUMS Financing Authority which is wholly owned by the Municipal Finance Officers’ Association of Ontario (MFOA) and Local Authority Services (LAS), a corporation of the Association of

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Municipalities of Ontario (AMO). It currently offers investment products for Ontario municipalities under the Legal List approach to investing. At the end of 2018, ONE Investment had $2.0B collectively in Assets Under Management (“AUM”), with the Town of Whitby (the Town) representing $66.8M of the balance. AUM represents the market value of assets managed by an investment firm on behalf of its clients. As of July 31, 2019, the Town had $61.1M invested in the ONE Investment’s High Interest Savings Account (“HISA”) and $8.6M invested in the ONE Equity Portfolio – a total of $69.7M, or 25% of the Town’s total investments. Under the Act a municipality can create its own IB if it has, in the opinion of the Treasurer, at least $100M in money and investments that it does not require immediately; or $50M in net financial assets. As at December 31, 2018, the Town had total net financial assets of $148.9M, satisfying the net financial asset criteria to either establish its own IB or establish and invest through a JIB with one or more other municipalities having a combined total of at least $100M in money and investments that the municipalities do not require immediately. At the end of 2018, The Town had approximately $212.9M available for investment. Current estimates of funds not immediately required are approximately half, or $106.5M, but staff are still considering additional information to arrive at a final figure for the next Council report.

4. Discussion:

(I) PI Governance Options

Municipalities that decide to adopt the PI regime must transfer control and management of funds consisting of, and investments made with, money not required immediately, to an IB or JIB. At present, there are two available options:

1. Establish an independent Investment Board; or 2. Establish a Joint Investment Board with one or more municipalities and ONE Investment.

There are several factors to consider when evaluating the two available options, more specifically outlined in Appendix 2 – Detailed Comparison of Prudent Investor Options.

Establishing an IB or JIB can be costly in terms of the initial set-up and ongoing maintenance costs, both direct and indirect. Costs may include legal fees, member remuneration, fund manager research, consultants for investment expertise and other investment services (e.g. asset allocation studies), committee secretary, closed meeting support, etc. a) Establish a Town of Whitby Investment Board An IB is a municipal service board as defined by the Act and is governed by the procedural requirements of the Act (sections 194 to 202). All of the required services provided to a municipal service board would need to be provided to the IB (e.g. committee secretary, closed meeting support, etc.).

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As municipalities are required to delegate their investment powers to the IB, a high priority must be placed on appointing qualified experts. Professional fund managers will be engaged to manage the funds as per municipal investment policies, and a professional led team of JIB experts will provide oversight.

Additionally, as in-house investment expertise has its limitations, it will be necessary to acquire additional resources within individual municipalities or seek expert advice externally to ensure municipal portfolios reflect the investment policies of the distinct member municipalities.

To date, the City of Toronto is the only municipality to establish its own IB. Toronto was permitted to implement the PI regime under the City of Toronto Act, 2006, for a full year before the PI regime was extended to other municipalities under the Municipal Act, 2001. The City has yet to transition all of its investments to its IB and at present, the City is not prepared to have its IB invest for other municipalities. The costs incurred by the City of Toronto have been significant to date. The City has spent over $1.1M setting up its IB and is still incurring additional costs.

ONE Investment has not yet finalized its JIB due to the complexity of PI and working to create customized investment solutions for many municipalities of varying sizes and circumstances, but expects to do so by the end of 2019. Municipalities participating in the JIB will not incur the upfront costs of establishing the JIB and ongoing operational costs will be minimized as a result of sharing with other participating municipalities.

After receiving an exemption from the Ontario Securities Commission (OSC) that allows them to provide expert advice, ONE Investment has hired a Chartered Financial Analyst with over 25-years of experience in institutional investing to serve as a shared resource to member municipalities. ONE Investment has dedicated resources such as this to help municipal staff and Council’s with developing appropriate investment strategies and obtaining expert investment and legal advice when preparing an IPS. b) Establish a Joint Investment Board As noted in CS 19-19 Prudent Investor Standard for Municipal Investments: Next Steps, ONE Investment is currently the only not-for-profit organization actively working to establish a JIB. To date, there are no other JIBs that the Town can partner with. Town staff has been working with ONE Investment and seven other municipalities, listed below, to investigate becoming founding member municipalities of a JIB.

County of Essex Town of Whitby Municipality of Clarington Town of Bracebridge District of Muskoka Town of Innisfil Town of Huntsville City of Kenora

A number of other single tier and upper tier municipalities are also participating in the discussions, or have expressed an interest for the future.

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Appendix 3 - Update on ONE Investment’s Turnkey Solution of Prudent Investor details the process for establishing ONE JIB and the roles of the municipality and ONE JIB.

(II) Benefits of Prudent Investor (PI) Regime

Municipalities must always balance risk with return when investing the public’s funds. The PI regime expands investment opportunities to encourage better risk-adjusted returns by balancing risk with returns. Legal List investing can embed concentration risk into the municipal investment portfolio. That is, losses can be amplified from having a large position of investments in a particular asset class relative to the overall portfolio1 or in a specific market. The diversification of investment products and the removal of geographic limitations available under the PI regime may mitigate concentration risk. a) Risk Adjusted Returns The risk-adjusted return refers to the ratio of percentage returns to the percentage risk (volatility). Volatility is a common way to measure risk in investments – it represents fluctuations in market value.2 It helps identify whether the amount of additional return expected by purchasing a security is worth the incremental risk involved. Research shows that when investing over longer time frames diversification helps investors to better manage portfolio risk.3 Evaluating investments based on return potential alone is not prudent and investment managers should always keep overall portfolio risk in mind.

Many municipalities are traditional very conservative investors. When a municipality puts too much of a priority on capital preservation, it invests in GIC’s or term deposits which ensure little to no losses. Figure 1 shows that returns on short-term investments over the 10-year time-period did not keep pace with inflation. Average annual inflation from 2008-2018 was 1.97% using the Consumer Price Index. It should be noted that in periods where the S&P/TSX Composite experienced losses, the subsequent recovery and cumulative gains greatly exceed the initial decrease in value.

Under the current Legal List approach, municipalities have access to a range of investments with the potential to earn returns above posted GIC rates such as principal protected notes, provincial bonds and the ONE Equity funds. However, risk is managed at the security level as opposed to the portfolio level due to a limited ability to diversify.

ONE Investment’s PI offerings will include its current Legal List options and new Global Equity and Global Bond funds that will only be available to PI investors. Modelling data provided by ONE Investment shows that for PI & Legal List portfolios comprised of 80% bonds (fixed income) and 20% stocks (equities) and the same risk level, the expected annual PI return is 4.3%; or 1.1% more than under Legal List (3.2%).

1 https://www.finra.org/investors/concentrate-concentration-risk 2 The measure of volatility used throughout this document is standard deviation. 3 Asness, Clifford S., Isrealov, Ron, and John M. Liew. (2011). “International Diversification Works (Eventually)” Financial Analysts Journal Volume 67, Number 3.

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Figure 1: Rolling 1-Year Returns across Asset Classes

b) Diversification by Asset Class The PI regime will enable the Town to invest in a broader array of investment products, facilitating a more diversified portfolio and potentially reducing overall portfolio risk. Diversification is a risk management strategy where a wide variety of investments is incorporated within a portfolio. Portfolios constructed of different kinds of assets will, on average, yield higher long-term returns and lower the risk of any individual holding or security4. Between 2000 and 2018, the Canadian equity markets experienced six market downturns where values declined by greater than 5%; however, in each of those periods fixed income products experienced positive returns and subsequent equity gains erased cumulative losses. If an investor held both Canadian stocks and fixed income the decline in equities would have been partially or potentially fully offset by a positive return on fixed income. c) Geographic Diversification Previously, municipal investment opportunities have been limited to Canadian markets. The PI regime allows the Town to invest in Global markets. Investing funds globally can help municipalities offset losses in one market with gains earned in another. Prices in capital markets outside of Canada are influenced by different economic fundamentals and political circumstances. For this reason, the pattern of returns from Global stocks and fixed income will differ in comparison to Canadian securities, allowing for diversification benefits and a potential reduction in overall portfolio risk. Under the current Legal List, the Town can only invest in Canadian equities5, which has its

4 https://www.investopedia.com/terms/d/diversification.asp 5 Currently, investments in Canadian equities are only accessible through ONE Investment.

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Report CS 46-19 Committee of the Whole Page 7 of 12 limitations. For example, the Canadian economy is highly exposed to global demand for, and the prices of, certain primary commodities, including oil. It is also dependent on exports and trade, particularly with the United States.6

In looking at historical data, investors would have experienced less volatility if they held Global and Canadian securities. A 100% Canadian portfolio is the most volatile asset mix whereas the geographic mixes offering the most stability generally reflect a mix of Canadian and Global stocks (See Appendix 1 for an in-depth analysis).

Higher-Yield Securities Diversification can be used to pursue greater returns by tolerating a greater level of risk over a small portion of a portfolio. Table 1 shows how 0.5% in annual returns compounds into revenue over ten years for different investments. The compounding effect of a 0.5% return for $5.0M would generate $0.3M over a 10-year period. For a $100.0M initial investment, 0.5% compounded annually for 10 years would ultimately contribute $5.0M in additional revenues to the municipality.

Table 1: Compounded Value of 0.5% (1/2 percent) over 10 Years

Initial Incremental Investment Revenue $5.0M $0.3M $20.0M $1.0M $50.0M $2.5M $100.0M $5.0M Increasing returns by an amount as small as 0.5% over a 10-year period can have a major impact on a municipality’s budget and ability to fund future capital expenditures. To achieve this, portfolio managers try to identify inefficiencies in the market. They conduct research and analysis to identify investments they believe are incorrectly valued or identify themes that are not correctly reflected in securities prices.

Figure 2 compares historical ONE Investment returns of a model PI asset allocation to a comparable Legal List asset allocation from 2014 to 2018. It shows that the PI portfolio outperformed the Legal List option in four of the five years. In 2015 the model PI option would have outperformed the Legal List by almost 7% while the average annual difference over the five years would have been 2.7% in favour of the PI option. It should be noted that Legal List and PI equity returns in 2018 were lower following an extended period of Canadian and Global market stability and mounting market pessimism7.

6 Source: See remarks of Stephen S. Poloz, Governor, Bank of Canada “Opening Statement”, January 9, 2019 and Bank of Canada Monetary Policy Report July, 2019, “Key inputs to the base-case projection.” 7 https://www.guardiancapital.com/media/61491/gc_eo_winter-2019.pdf

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Figure 2: Historical Rates of Return for ONE Investment Offerings (2014-2018)8

Short TermBond Investments PortfolioUniverse (HISA Corporateetc.)Equity Portfolio BondGlobal BondGlobal EquityLegal ListPrudent Allocation InvestorVariance Allocation 2018 1.7% 2.0% 1.6% -1.9% -0.5% 5.7% 1.0% 0.8% -0.1% 2017 0.8% 0.3% 2.6% 10.8% 4.6% 19.1% 3.1% 6.2% 3.1% 2016 0.7% 1.2% 2.2% 15.3% 5.4% 0.9% 4.0% 4.4% 0.4% 2015 0.9% 2.3% 3.7% 0.3% 7.7% 23.1% 1.6% 8.6% 7.0% 2014 1.1% 3.5% 9.4% 20.2% 9.9% 15.9% 6.9% 10.0% 3.1% Average 3.3% 6.0% 2.7% Investment Allocations PI 20% 5% 60% 15% Legal List 45% 15% 20% 20% (III) Potential Issues of adopting the PI Regime

Opting into the PI regime & becoming a founding member of a JIB requires a governance structure that other municipalities can use to maximize their risk-adjusted returns in the future. Early adopters will be taking a leadership role within the sector and have the distinct advantage of having worked through the intricacies of the updated legislation. In addition, an IB/JIB can address risks where there are no mitigating factors built into the legislation such as dispute resolution procedures for conflicts between members.

a) A municipality that passes a by-law to adopt the PI regime cannot revoke that by- law. Municipalities cannot revert to investing money that is not required immediately in accordance with the Legal List unless a regulation authorizing the municipality to do so is made by the Lieutenant Governor in Council.

b) Should the Town proceed with establishing its own IB, there is currently no alternative IB/JIB if the IB fails or proves too costly to justify over the long-term. This is also true for joining or helping create a JIB with the added complication that JIB agreements can make it more difficult to switch to another IB/JIB option in the future. However, ONE Investment has developed clear procedures for founding municipalities to exit its JIB to alleviate such concerns.

c) A municipality must delegate its powers to invest money not required immediately to, and have the portfolio professionally managed by, an IB or JIB. In

8 Historical data provided by ONE Investment

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addition, per the Regulation, Council and municipal staff cannot be appointed as members of the IB or JIB, except for the Treasurer(s) provided that the Treasurer(s), does/do not make up more than 25% of the members of the IB or JIB. These control risks, however, are mitigated by the Town’s IPS, which would allow Council to define its “objectives for return on investment and risk tolerance” and its “need for liquidity”. Council must review and, if necessary, amend the IPS at least once per year. Through the IPS, Council maintains strategic control over its investments and guides the activities of the professional fund managers.

d) As with any investment, there is no guarantee of significantly better returns and investing in a broader array of investments exposes the Town to different risks. Growing investment funds above inflation is an increasing challenge, especially through fixed income investments and the municipality is relying on the expertise, experience and diligence of ONE JIB and ONE Investment staff. However, this includes the opportunity to have Whitby’s investments professionally managed by portfolio managers with an existing client base and proven track record who are required to act in good faith and the best interests of the Town. Therefore, when taking the projected returns in conjunction with the past performance comparisons, staff believe the PI option offers greater opportunity for increased returns while more effectively managing concentration risk.

(IV) Recommendation and Next Steps

Given the above benefits and risk mitigation strategies, Town staff recommend working with ONE Investment to bring forward an IPS for approval and any other agreements associated with establishing a new JIB and implementing the PI regime.

If Council decides to proceed with the PI regime, staff will need to determine what constitutes “money not required immediately” and control and management of that money must be given to the IB or JIB for the purposes of investing. Any money that remains with the municipality will remain under the control and management of the municipality. The Town has received guidance from ONE Investment and external legal opinions on the definition of “money not required immediately” – being a time-based threshold of 18 months, following the City of Toronto’s IPS.

Most of the large municipal spending on projects is identified in capital forecasts, and the immediate need for significant unexpected funds within 18 months beyond operating requirements is relatively small. Shifting of project timing and the need for funds can be managed as part of the program given a reasonable lead-time. Funds invested with ONE Investment would be accessible if needed, although a planned investment approach would optimize returns and minimize any penalties related to prematurely cashing in investments.

Currently staff estimate that over 50% of the Town’s $200.0M+ available for investment would qualify as “money not required immediately”. There are a number of details and questions to be finalized in terms of this definition, including the flexibility to influence the definition for local preferences and individual circumstances. Ultimately as the

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Once the IPS is updated to incorporate PI investment options, the next steps to adopting the PI regime through ONE JIB are summarized below.

a) The Town must pass an authorizing by-law (“Authorizing By-Law”), coordinated with the other founding municipalities. This step is irrevocable and Council must address any concerns before this stage.

The Authorizing By-Law will authorize: (i) the entering into of an initial formation agreement pursuant to which ONE JIB will be established; (ii) the completion of The Town of Whitby’s Municipal Client Questionnaire; (iii) the adoption of the Town of Whitby’s IPS; and (iv) the entering into of an agreement with ONE JIB and the other founding municipalities pursuant to which ONE JIB will agree to invest the money and investments of the founding municipalities under the PI regime and of other municipalities that may subsequently agree to invest through ONE JIB (the “ONE JIB Agreement”).

b) Following the passing of an Authorizing By-Law by all the founding municipalities, the next step will be to finalize an Agreement as between ONE JIB and the founding municipalities (the “ONE JIB Agreement”).

c) Following the execution of the ONE JIB Agreement, the founding municipalities will need to pass their respective prudent investor enabling by-law (the “Prudent Investor Enabling By-Law”) pursuant to which the PI regime will apply as at the effective date set out in its Prudent Investor Enabling By-Law.

ONE Investment has proposed a target date for the founding municipalities to pass its respective Prudent Investor Enabling By-Law by early 2020. Note that this timeline is subject to change and staff will provide a further update in due course.

5. Financial Considerations: The opportunity for professional management of invested funds and the potential for risk reduction and better returns than currently available – not feasible under the current Legal List system – are major drivers for pursuing the PI regime.

Costs to establish an independent Town of Whitby investment board are prohibitive and include set-up fees (staff, legal & manager search etc.) and ongoing maintenance fees (board remuneration, admin costs etc.). These fees will be the sole responsibility of the Town and excludes costs of acquiring outside expertise, creating institutional layers for management and monitoring, required training on the part of public officials and a more “hands on” approach to investing.

ONE Investment is in the process of establishing ONE JIB, effectively eliminating set-up costs to municipalities. Whitby, through cost sharing with other municipal investors, would have access to the necessary expert investment and municipal finance advice.

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Additionally, the ongoing maintenance costs would be shared with all municipal investors making it a more affordable option.

Founding member privileges will include access to membership benefits that are unavailable to municipalities that adopt the PI regime after ONE JIB is established. Benefits include lower management fees charged by ONE Investment, permanent representation on the Municipal Advisory Committee and Treasurer status on the Joint Investment Board in two year terms. These incentives help alleviate concerns about the risk of being one of the first clients of the ONE JIB and also address slightly higher investment manager fees due to added product complexity.

From 2014 to 2018, the Town of Whitby earned approximately 2.1% annually on its Legal List portfolio. Employing a more diversified PI portfolio would have earned 6.0% on average annually; outperforming the Legal List portfolio and contributing an additional 3.9% to the Town. For every additional $5.0M invested, it would have meant an additional $0.2M in annual revenues.

ONE Investment is a not-for-profit corporation and is committed to adjusting its fees on a regular basis to ensure fee revenues are closely aligned to budgeted projections.

6. Communication and Public Engagement: N/A

7. Input from Departments/Sources: Legal Services is engaged with Corporate Services and ONE Investment to provide advice and review documentation, as required.

8. Strategic Priorities: a. Council Goals To continue the Whitby tradition of responsible financial management and respect for taxpayers; and to understand the importance of affordability and sustainability to a healthy, balanced community. b. Corporate Strategic Plan and Strategic Priorities 2. Organization We will be a high performing, innovative, effective and efficient organization. OBJECTIVES: 2.1. Continually improve how we do things by fostering innovation and focusing on making our processes better 2.2. Develop and utilize comprehensive business and financial planning processes

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9. Attachments: Appendix 1 – Impacts of Geographic Diversification on Risk Appendix 2 – Detailed Comparison of Prudent Investor Options Appendix 3 – Update on ONE Investment’s Turnkey Solution of Prudent Investor

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Appendix 1

Impacts of Geographic Diversification on Risk

The following analysis, using data up to February 2019, demonstrates the potential benefits of a diversified approach in the stock markets. The analysis uses the S&P/TSX composite index as a proxy for the performance of the Canadian stock markets and the MSCI World index as a proxy for the performance of the Global stock markets in developed countries. The analysis assumes four different asset allocations (100% Canadian; 100% Global; a 75:25 Canadian to Global ratio; 50:50 ratio; and a 25:75 Canadian to Global ratio) over three different time periods (10, 20, and 40 years). For each asset mix and time period, the analysis calculates total returns, and volatility (a common risk measure) as an annualized percentage.

The 10-year time frame

In the 10-year time frame, the 100% Canadian mix (S&P/TSX) experienced the lowest returns at the highest levels of risk. The 100% Global mix (MSCI World) experienced the highest returns and the second highest levels of risk. As expected, the three diversified asset mixes experienced returns somewhere between the two with greater returns showing for those with a heavier weighting of the Global index. However, all three diversified asset mixes experienced less volatility (risk) during the time-period with the 50:50 asset mix showing the least volatility. The 25:75 Canadian to Global mix yielded the highest risk-adjusted return (return divided by risk) at 1.37. For the purposes of comparing to other time-periods, it should be noted that during this 10-year time frame the market did not experience any extreme economic events.

Table 1: Risk and return of different equity allocations over a 10-year period

(Annualized 100% 100% 75% 50% 25% percentages) Canadian Global Canadian / Canadian / Canadian / 25% Global 50% Global 75% Global Return 10.21 13.42 11.10 11.94 12.71 Volatility 10.77 10.08 9.66 9.13 9.28 Risk-adjusted 0.95 1.33 1.15 1.31 1.37 return

The 20-year time frame

In the 20-year time frame, the 100% Canadian portfolio experienced the highest level of returns and the highest level of risk. The 100% Global portfolio experienced the lowest returns and was in the middle of the asset mixes in terms of risk. In terms of the diversified portfolios those that favoured Canadian stocks offered greater returns but also greater levels of risk, whereas those that favoured Global stocks produced lower returns at a lower risk. During this period, the asset mixes that favoured Canadian

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stocks offered the greatest risk adjusted returns with the 75:25 Canadian to Global mix offering a slightly higher risk adjusted return (0.541) than the 100% Canadian mix (0.538). It should be noted that this period covers the 2008 financial crisis, one of the most significant market collapses since the Great Depression. Additionally, the Global index incorporates US stocks, which were heavily impacted by the 2008 financial crisis.

Table 2: Risk and return of different equity allocations over a 20-year period

(Annualized 100% 100% 75% 50% 25% percentages) Canadian Global Canadian / Canadian / Canadian / 25% Global 50% Global 75% Global Return 7.37 4.25 6.70 5.96 5.14 Volatility 13.69 11.85 12.37 11.57 11.38 Risk-adjusted 0.54 0.36 0.54 0.52 0.45 return

The 40-year time frame

In the 40-year time frame, the 100% Canadian portfolio experienced the lowest returns and the highest levels of risk. The 100% Global portfolio experienced the second- highest level of returns and was in the middle of the asset mixes in terms of risk. Of the three diversified mixes the 25:75 Canadian to Global mix offered both the greatest returns and the lowest level of risk. The mixes that leaned more heavily on Global stocks offered greater returns and lower levels of risk. The diversified mixes that were weighted equally or more heavily toward Global stocks yielded greatest risk adjusted returns. In addition to the financial crisis in 2008, this period also encompasses the dot- com bubble of the mid-1990s to early 2000s, and the high interest rates in the 1980s and volatile oil prices of the 1970s and 80s.

Table 3: Risk and return of different equity allocations over a 40-year period

(Annualized 100% 100% 75% 50% 25% percentages) Canadian Global Canadian / Canadian / Canadian / 25% Global 50% Global 75% Global Return 9.38 9.80 9.64 9.79 9.85 Volatility 15.35 12.83 13.78 12.76 12.43 Risk-adjusted 0.61 0.76 0.70 0.77 0.79 return

What we can see from this analysis is that, through each time period, Global diversification generally offered a lower level of risk than relying on Canadian stocks alone. Apart from the 20-year time period, Global diversification also delivered greater rates of return and risk-adjusted returns. The 20-year time period demonstrates that

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significant economic events in a market can have a noticeable impact on returns but that the level of diversification still offers a lower overall exposure to volatility.

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Appendix 2

Detailed Comparison of PI Options

Prudent Investor through Prudent Investor through ONE JIB as a Town of Whitby Investment founding municipality Board Control over Strategic control through Strategic control through investment policy investments investment policy Partial control over governance through Full control over short-term rotating term for treasurer on ONE JIB investments through and committees definition of money not Full control over short-term investments required immediately Ability to set own risk tolerance Ability to set own risk tolerance Cost Costs of establishing are high. Maintenance costs shared among all Toronto’s has already members through ONE fees. spent in excess of $1.0M. Average fees are slightly higher than legal Fees are likely to be slightly list as manager fees for PI products are higher than legal list due to higher due to complexity of offering. greater product complexity Fees are charged to investment funds so and required level of active there are no direct budget implications. management. Fee rebates for founding municipalities Establishing an IB and Set up costs are absorbed by ONE ongoing maintenance Investment. would have a direct budget impact. Risks No alternative IB / JIB at JIB agreements can make it slightly more present if IB fails or proves difficult to switch to other IB or JIB too costly to justify over option in future; though ONE has long-term developed clear procedures for founding municipalities to exit the JIB No alternative IB / JIB at present Opportunities Potential for improved risk- Potential for risk-adjusted returns adjusted returns Fee rebates for founding municipalities Expert advice of an CFA charterholder is a part of the turnkey solution ONE has developed IPS templates and investment plan templates that are in full compliance with the Municipal Act. Set up costs have already been absorbed by ONE Investment. Feasibility Moderate / Low High

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Appendix 2

Detailed Comparison of PI Options

Prudent Investor through Prudent Investor through ONE JIB as a Town of Whitby Investment founding municipality Board Control over • Strategic control through • Strategic control through investment investments investment policy policy • Full control over short-term • Partial control over governance through investments through rotating term for treasurer on ONE JIB definition of money not and committees required immediately • Full control over short-term investments • Ability to set own risk • Ability to set own risk tolerance tolerance Cost • Costs of establishing are • Maintenance costs shared among all high. Toronto’s has members through ONE fees. already spent in excess of • Average fees are slightly higher than $1.0M. legal list as manager fees for PI • Fees are likely to be products are higher due to complexity slightly higher than legal of offering. list due to greater product • Fees are charged to investment funds complexity and required so there are no direct budget level of active implications. management. • Fee rebates for founding municipalities • Establishing an IB and • Set up costs are absorbed by ONE ongoing maintenance Investment. would have a direct budget impact. Risks • No alternative IB / JIB at • JIB agreements can make it slightly present if IB fails or proves more difficult to switch to other IB or too costly to justify over JIB option in future; though ONE has long-term developed clear procedures for founding municipalities to exit the JIB • No alternative IB / JIB at present Opportunities • Potential for improved risk- • Potential for risk-adjusted returns adjusted returns • Fee rebates for founding municipalities • Expert advice of an CFA charterholder is a part of the turnkey solution • ONE has developed IPS templates and investment plan templates that are in full compliance with the Municipal Act.

Feasibility • Moderate / Low • High

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APPENDIX 3

Update on ONE Investment’s Turnkey Solution of Prudent Investor

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Contents The ONE Investment Turnkey PI Solution ...... 3 Establishing ONE JIB ...... 3 Roles and Responsibilities ...... 4 Council ...... 4 Municipal Staff ...... 5 ONE Investment...... 5 Managing Investments ...... 6 Roles and Responsibilities ...... 6 Council ...... 6 ONE JIB ...... 7 ONE Investment...... 8 Municipal Staff ...... 10 Figure 1:Typical Roles and Responsibility of ONE’s Turnkey PI Solution* ...... 12 Benefits and Risks of a Founding Municipality ...... 13 Benefits of Founding Municipality Status ...... 13 Risks of Founding Municipality Status ...... 13 Schedule A - Investment Advisory Committee Biographies ...... 15 Schedule B - Steps to Establish ONE Joint Investment Board (ONE JIB) ...... 18

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The ONE Investment Turnkey PI Solution ONE Investment is a non-profit corporation founded by LAS (a corporation of the Association of Municipalities of Ontario) and CHUMS Financing Corporation (a subsidiary of the Municipal Finance Officers’ Association of Ontario). Its purposes are to:

• “facilitate investment by municipalities and public sector bodies in investment products and vehicles • to make available, and lower the cost of, such products and services in a manner consistent with the investment objectives of such municipalities and public sector bodies.”

ONE Investment has long offered investment options for municipalities that are compliant with “legal list” requirements. ONE Investment has more than 25 years experience serving the municipal sector.

Two challenges noted by the Institute for Municipal Finance and Governance in its report on Ontario’s prudent investor (PI) standard are that it:

(1) is costly, requiring outside expertise and additional institutional layers for management and monitoring, and, (2) requires expertise on the part of public officials and a more “hands on” approach to investing.

It is ONE Investment’s goal to meet its purposes for municipalities who wish to partake in the PI regime, to reduce costs by pooling funds and to facilitate investing in a manner that is consistent with the municipality’s objectives. To do so, it is in the process of developing standardized templates and working through the complex legal issues and governance structures to develop processes that will be simple, understandable and flexible for municipalities while also meeting the requirements of the legislation.

The following sections of the document will detail the planned processes, roles and responsibilities for:

(1) establishing the ONE Joint Investment Board (ONE JIB) (2) ongoing management of investments with ONE JIB Establishing ONE JIB In order to take advantage of the potential opportunity afforded by the PI regime, municipalities that meet at least one of the financial thresholds set out in O. Reg. 438/97 (Regulation) can establish an authorized investment board, like ONE JIB, through which they can invest their money that they do not require immediately. After ONE JIB is established by the founding municipalities (Founding Municipalities) and fulfill other requirements which include adopting an investment policy statement (IPS) and entering into an agreement with ONE JIB and all of the Founding Municipalities pursuant to which ONE JIB agrees to invest on their behalf under the PI regime, Founding Municipalities can pass a by-law to opt into the PI regime under section 418.1 of the Municipal Act, 2001 (Act). The PI regime will apply to each Founding Municipality as of the effective date set out in its by-law. This by-law is irrevocable: once a municipality passes the by-law, it will not have the ability to opt out of the PI regime and go back to the Legal List (LL) for the investment of its money that it does not require immediately without a regulation by the Lieutenant Governor in Council approving the transition.

Once the effective date has passed and Founding Municipalities are subject to the PI regime, any future investment of monies not required immediately will be made through ONE JIB.

ONE Investment cannot establish an investment board (IB) or a joint investment board (JIB) on its own, as the Regulation only permits municipalities meeting the prescribed financial thresholds to establish an IB or JIB. To establish ONE JIB, ONE Investment is actively recruiting Founding Municipalities who will jointly establish a JIB that will act as the cornerstone for offering all municipalities in Ontario an affordable cost-shared PI solution. Under the Act, all municipalities whether or not they meet the prescribed financial

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thresholds are eligible to delegate their investment powers to previously established IBs or JIBs allowing them to opt into the PI regime.

The following section details how municipalities can become Founding Municipalities and help establish ONE JIB. It is organized by roles and responsibilities. See schedule B for the steps to establish ONE JIB, organized chronologically. Roles and Responsibilities Council Council in this instance refers to a municipal council considering jointly establishing ONE JIB as a Founding Municipality. Council’s role in establishing ONE JIB as a Founding Municipality is important because the Founding Municipalities are the decision-makers with the authority to provide input in respect of the terms and conditions of the agreement establishing ONE JIB and the agreement allowing ONE JIB to invest under the PI regime on behalf of the Founding Municipalities and of other municipalities that may subsequently agree to invest through ONE JIB (ONE JIB Agreement). Council’s primary role in the process created by ONE Investment is to formally establish ONE JIB.

Role Responsibility • Enter an Initial Formation Agreement • Pass the “Authorizing By-law” which establishing ONE JIB authorizes: (i) the entering into of the • Complete the Municipal Client Initial Formation Agreement; (ii) the Questionnaire completion of the Municipal Client • Adopt an Investment Policy Statement Questionnaire; (iii) the adoption of an IPS; (IPS) (iv) the approval of a draft investment • Approve a draft investment plan plan; and (v) the entering into of the ONE • Enter into the ONE JIB Agreement JIB Agreement

• Formally opt into the PI regime • Pass the Prudent Investor Enabling By- law

Passing the Authorizing By-law and the Prudent Investor Enabling By-law Municipalities will be able to enter into the Initial Formation Agreement establishing ONE JIB, adopt their IPS, enter into the ONE JIB Agreement and fulfill other requirements through an Authorizing By-law. ONE Investment has been consulting with legal experts to draft a single Authorizing By-law document that is compliant with legislation.

Once council and staff are comfortable with the guidelines Council are the ultimate decision- and parameters they have set out in their IPS (see section below on Managing Investments for more details), council makers in becoming a Founding can pass the Authorizing By-law to establish ONE JIB. This, Municipality that establishes ONE JIB. however, has one important caveat; the Authorizing By-law Being a Founding Municipality for authorizes the entering into of an agreement with other ONE JIB is a significant decision to Founding Municipalities to establish ONE JIB. The other lead the sector not only as an early Founding Municipalities must be prepared to enter into the mover on PI investing but in agreement at that time as well and the total of all municipal money or investments not immediately required, in the establishing a framework for the opinion of the treasurers, at that time must be at least $100 benefit of all municipalities in Ontario million (collectively). In order to opt into the PI regime council must pass a Prudent Enabling Investor By-law which provides that section 418.1 of the Act applies to the municipality.

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Municipal Staff Municipal staff will play an integral role in guiding council throughout the process of opting into the PI regime.

Role Responsibility • Perform due diligence to ensure Council • Ongoing updates and reports to council has the information it requires and recommendations that it can consider on: o the PI regime o the ONE Investment PI option • Prepare the Authorizing By-law based on • Present the Authorizing By-law to Council the template provided by ONE Investment • Prepare the Prudent Investor Enabling • Present the Prudent Investor Enabling By- By-law based on the template provided by law to Council ONE Investment

While ONE Investment will provide regular updates on the ONE Investment’s PI turnkey services progress towards establishing ONE JIB, municipal staff will need to conduct its own independent due diligence. are designed to assume as much as possible of the municipality’s Once a council directs staff to work with ONE Investment to workload. ONE Investment takes become a Founding Municipality, ONE Investment will care of the administrative work provide template copies of all necessary documentation to and work with staff to prepare an Authorizing By-law and a while leveraging staff and council for Prudent Investor Enabling By-law. During this period, their unique municipal insights for municipal staff will also be working with ONE Investment to customization. All key decisions develop a draft IPS (further details in section on Managing remain with the municipality Investments) which will be required before the Authorizing By-law can be passed. ONE Investment ONE Investment’s role through the process is to aid and provide information. ONE Investment began conducting its research and analysis of the PI regime when the legislation was first introduced in late 2016 and has developed a lot of knowledge and expertise in PI implementation during that period.

Role Responsibility • To support staff and Council through the • Provide ongoing updates and reports to due diligence process staff on the progress of establishing and organizing ONE JIB.

• To facilitate the Authorizing By-law • Develop and provide templates to staff process by providing a standardized, • Provide municipal staff advice in legislatively compliant template customizing templates • To facilitate the Prudent Investor Enabling • Ensure legal compliance of By-law process by providing a documentation standardized, legislatively compliant template

ONE Investment’s responsibilities will leverage the knowledge and expertise acquired over the last three years of performing its due diligence on PI - helping staff guide council through the process of establishing ONE JIB and opting into the PI regime. As such, ONE Investment is available to answer

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questions that may arise during the process whether they be related to due diligence or process and implementation expertise. ONE Investment with legal counsel has developed legislatively compliant by- laws and IPS templates.

As part of its support for municipalities during this process, ONE Investment will consult with legal counsel to ensure that the documentation is customized to meet the needs of the municipality and is compliant with legislation before the documentation is submitted to council for approval. Managing Investments Once ONE JIB is established and the Founding Municipalities have passed the Prudent Investor Enabling By-law, responsibility for managing the day-to-day investments of the municipality will be the responsibility of ONE JIB with assistance from ONE Investment staff and municipal staff; however, council retains ultimate control over the strategic direction of its investments through the IPS. The following section will detail the roles and responsibilities of each party in the ongoing management of investments. Roles and Responsibilities Council Role Responsibility • To provide overall strategic direction on • To direct municipal staff to complete the investments Municipal Client Questionnaire • To adopt and maintain an IPS and to review it at least annually, and update it as necessary

Council establishes and maintains control of the strategic direction of its investments through development of its IPS. The IPS is a requirement under section 18 of the Regulation.

Subsection 18(2) of the Regulation details the requirements of the IPS which are:

- The municipality’s objectives for return on investment - The municipality’s risk tolerance - The municipality’s need for liquidity including, for greater certainty, the municipality’s anticipated needs for funds for planned projects and the municipality’s needs to have funds available for unanticipated contingencies

In addition, subsection 18(3) allows municipalities to include “other requirements with respect to investment matters that council considers to be in the interests of the municipality.” The Investment Policy Statement Subsection 18(4) requires that council review the IPS, and update it if necessary, at least annually. This ensures that (IPS) is a document required by the IPS remains aligned with council priorities and legislation that ensures that a provides council with the flexibility to update it at any point municipality’s funds are invested to should circumstances require. meet its specific needs at its ONE Investment has prepared an IPS template and will accepted level of risk. It is through provide detailed guidance on all decision points in a future this policy that council retains update. ultimate control of its investments.

As mentioned in the previous section, Establishing ONE JIB, a Founding Municipality’s council will adopt its IPS by enacting the Authorizing By-law.

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ONE JIB A Joint Investment Board is a “municipal service board that is established under section 202 of the Act by two or more municipalities for the purposes of” enabling municipalities to invest in accordance with the PI regime1. ONE JIB is a Joint Investment Board that is established by ONE JIB will have a representative the Founding Municipalities, in accordance with Part II of municipal perspective through the the Regulation. appointment of municipal treasurers.

ONE JIB will be primarily comprised of highly qualified NOTE: As per the Regulation, no other independent investment professionals. As per the members of municipal staff or Regulation, no councillors are permitted to sit on ONE JIB. As stipulated in the Regulation, the only staff allowed to sit councillors are permitted to sit on ONE on an IB is the municipal treasurer or, in the case of a JIB, JIB. several treasurers provided they do not comprise more than 25% of the JIB.

See schedule A for a description of the inaugural ONE JIB and brief biographies of its proposed members.

Role Responsibility • To exercise the municipality’s investment • Establishing and maintaining an powers in a manner that is compliant with investment plan that is informed by, and the relevant section (418.1) of the Act. in compliance with, the municipality’s IPS (Investment Plan). This includes reviewing the Investment Plan to ensure alignment following a Council IPS review (at least once per year). • Providing an annual report to Council that is compliant with the Regulation • Making decisions regarding investment managers • Reporting any breaches to the municipality

As per the Regulation, the Investment Plan deals with how ONE JIB will invest the municipality’s money. Consistent with legislation, the municipality’s Investment Plan will be developed with consideration for:

(1) General economic conditions (2) The possible effect of inflation or deflation (3) The role that each investment or course of action plays within the municipality’s portfolio of investments (4) The expected total return from income and the appreciation of capital (5) Needs for liquidity, regularity of income and preservation or appreciation of capital. (6) Any other criteria that are relevant to the circumstances

See table 5 for an example of what an investment plan will include.

1 O. Reg. 438/97 Section 13.

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Table 1: Proposed sections of the ONE JIB Investment Plan

Section Description Purpose of the Investment Plan This section establishes how ONE JIB will invest the municipality’s money that it does not require immediately (Long-Term Funds) Responsibility for the Investment This section will detail the actions in an Investment Plan and Plan provide detail for who will be responsible for execution Custodian This section will detail the financial institution(s) that hold the municipality’s investments Portfolio Overview This section will detail the objectives, risk tolerance and liquidity, and time horizon for investments on an account-by-account basis. Investment Goals and Objectives This section will provide a more detailed account of how the IPS has shaped the decisions within the Investment Plan, including the account structure, asset allocations, and asset mixes Constraints This section will detail any additional constraints placed on investments and may authorize the consideration of Environment, Social, and Governance (ESG) factors and securities lending ONE Investment External This section will provide details of the chosen investment Investment Managers managers for assets the municipality will invest in Rebalancing Provisions This section will detail the processes and mechanisms for rebalancing the portfolio should interest, dividends paid, or a change in the value of securities alter the overall asset allocation from the Investment Plan.

Additionally, ONE JIB is also responsible for providing an annual report to municipalities. This report will contain, at minimum:

• A statement about the performance of the municipality’s portfolio of investments during the period covered by the report; • A statement by the treasurer of the municipality as to whether or not, in the opinion of the treasurer, all investments are consistent with the municipality’s IPS, and the Investment Plan. • Such other information that the council may require or that, in the opinion of the treasurer, should be included.

This will be in addition to the ongoing detailed performance reporting and communication provided by ONE Investment.

ONE Investment ONE Investment is assisting in the establishment of ONE JIB to provide access to the PI regime for municipalities that do not qualify for the standard on their own or for municipalities that do not wish to incur the up front and ongoing maintenance costs associated with the prescribed investment governance model on their own.

Role Responsibility • Hands-on Investment Advice & Support • Investment advice • Support ONE JIB, including providing secretary functions • Assist municipalities in writing their IPS • Support ONE JIB in creating municipal Investment Plans

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• Provide robust reporting to municipalities on investment performance

• Investment Education and Training • Provide advice on how to integrate the municipality’s investment program with all facets of municipal finance • ONE Investment will build on education and training currently delivered through MFOA and LAS • Training has included courses on investment basics, the impact of interest rate changes on bond prices as well as municipal finance training on linking investment programs to capital budgets • ONE Investment will meet with municipal finance staff to discuss investment options

ONE Investment is designed to augment municipal staff by pooling investor resources to make available the investment and municipal finance expertise municipalities require for decision making purposes. ONE Investment will accomplish this in two ways: (1) by relieving some of the burden of the technical workload from staff through hands-on investment advice and support, and (2) by ensuring municipalities understand the municipal finance implications of investment decisions through education and training.

ONE Investment has received an exemption from the Ontario Securities Commission (OSC) to enable it to perform certain advisory and other functions without registration. This enables ONE Investment to provide expert advice to municipal investors, bridging the worlds of municipal finance and financial markets. As few municipalities have the resources to hire in-house expertise or contract an expert consultant, ONE Investment is developing a delivery model whereby a CFA charterholder and a municipal finance expert will be available to provide advice to municipal clients – a solution that is made affordable to all through pooled resources.

It would usually be the case that support for a joint municipal service board would be the responsibility of the municipalities establishing the joint board. In the case of ONE JIB, significant and specialized advice will be required to support its activities. Support can range from arranging and running meetings, preparing reports, crafting Investment Plans, obtaining expertise to advise ONE JIB when needed, remunerating members and keeping participating municipalities fully informed of ONE JIB activities and decisions. It is assumed that municipalities considering investing under the PI regime would find it difficult to provide this level of support to ONE JIB. Consequently, ONE Investment fully expects to provide these various support functions to ONE JIB and will enter into agreements with participating municipalities to permit it to do so.

Under ONE Investment’s turnkey PI solution, ONE Investment will be the municipality’s primary service provider in addition to providing all necessary support functions for ONE JIB. In its role as primary service provider for the municipality ONE Investment will design the composition of ONE JIB in accordance with the legislation. ONE Investment has already developed and initiated the recruitment process for the independent investment experts who will sit on ONE JIB and will also initiate the recruitment of treasurers from the Founding Municipalities who will also sit on the board. However, the Founding Municipalities will decide who are the members of ONE JIB. As part of the turnkey solution, ONE Investment will make recommendations for the initial members of the board of ONE JIB and will support future recruitment. As noted previously the Regulation limits the participation of treasurers on the board of ONE JIB to no more than 25% of the board composition.

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In its duty as primary service provider to municipal clients, ONE Investment will work with municipalities to develop drafts of their IPS. To do so, ONE Investment will work with municipal council and staff to complete a Municipal Client Questionnaire. ONE Investment will then use the responses provided in the questionnaire to pre-populate a draft of the IPS that is aligned with the municipality’s goals and level of risk tolerance. ONE Investment will provide ongoing advice and support to municipal council and staff as they work through ensuring the draft IPS is truly reflective of the municipality’s needs.

Once the IPS is approved, ONE Investment will work with staff on developing a draft Investment Plan that is reflective of the municipality’s IPS. As municipal investing authority is delegated to ONE JIB, it is ONE JIB who will make the final adjustment and have final approval of the municipality’s Investment Plan. Once the plan is finalized, ONE Investment will fulfill the role of implementing the plan, as directed by ONE JIB.

On an ongoing basis, ONE Investment will act as a primary point of contact for clients and ensure that any necessary communication with ONE JIB is established in a timely fashion. It will fulfill all monitoring and reporting requirements. This includes but is not limited to:

• regular reporting to the municipality • reporting to the Ontario Securities Commission • regular reporting to ONE JIB on client holdings • monitoring the performance of the Investment Manager

ONE Investment will also coordinate with municipal staff in preparation of the annual investment report to council. It will compile the information required for ONE JIB to provide appropriate commentary, and it will work with the municipality’s treasurer to incorporate the treasurer’s opinion into the annual investment report.

See Figure 1 for a detailed flow-chart of the roles and responsibilities and how ONE Investment manages all the coordination work required under the PI regime. Municipal Staff As noted in the previous section, ONE Investment provides all the support functions for ONE JIB. The municipal staff’s role in ONE’s turnkey PI solution is to work with ONE Investment staff to provide council and ONE JIB with the information they require to make key decisions. Staff will also be required to report on investments to council.

Role Responsibility • Ensure Council and ONE JIB have the • Work with Council to complete the information they need to perform their Municipal Client Questionnaire roles under the PI regime. • Work with ONE Investment to develop a draft IPS • Work with Council to modify the draft IPS so that Council can formally approve the IPS. • Work with ONE Investment on the draft Investment Plan to ensure that it is aligned with the IPS.

• Reporting on investments to council • Provide treasurer’s opinion for ONE JIB’s annual report • Notify Council a soon as it learns of any investments or investment issues that, in the treasurer’s opinion, fail to comply with the IPS.

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Role Responsibility

Ensure Council and the ONE JIB have the information they need to perform their roles under PI. The responsibilities entailed in this role include providing the information council requires to make decisions regarding its IPS and using its knowledge of the IPS and council’s objectives to help develop the initial draft of the Investment Plan.

This will entail working with council and ONE Investment to complete the Municipal Client Questionnaire annually. Once the questionnaire is complete, staff will work with ONE Investment on the development (or revision) of a draft IPS. Once the draft IPS is reflective of the Municipal Client Questionnaire, municipal staff will work with council to make any refinements necessary for council to approve the adoption of its IPS.

Once the IPS is adopted and shared with ONE Investment and ONE JIB, municipal staff will work with ONE Investment to develop a draft Investment Plan. As outlined in the previous section, ONE Investment will carry out the majority of the activities in drafting the Investment Plan for ONE JIB, but municipal staff will provide support where necessary to ensure interpretive alignment with the municipality’s IPS. ONE JIB will have ultimate responsibility for approval of municipal Investment Plan. Reporting on investments to council Additionally, municipal staff will play an ongoing role in reporting on investments to council. Outside of any council direction to report on investments, the treasurer has a legislative role in reporting on investments. In particular, the treasurer is required to provide an opinion for the annual investment report. This opinion will include a statement on whether the investments are consistent with the municipality’s IPS and Investment Plan. This is similar to the treasurer’s opinion required under the current legal list regime.

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Figure 1: Typical Roles and Responsibility of ONE’s Turnkey PI Solution* Page 125 of 279 Agenda Item # 4.10.

*Division of responsibilities between council and staff may vary by municipality

12 Agenda Item # 4.10.

Benefits and Risks of a Founding Municipality The PI standard for municipalities in Ontario is, other than in the case of the City of Toronto, untested. The legislation for establishing an IB or JIB to take advantage of PI is complex and requires a lot of upfront work with only the City of Toronto to learn from. Once a municipality puts in the effort to clear these obstacles (with ONE Investment’s guidance and assistance), and passes a by-law opting into the PI regime, the municipality can take advantage of a much wider array of investments for the money that it does not require immediately, but the municipality also does not have the option to revoke the by-law to revert to the Legal List legislation in respect of such money. The Lieutenant Governor in Council does have the power to make a regulation to have the PI regime no longer apply to a municipality.

ONE Investment firmly believes that all of Ontario’s municipalities making investments will eventually opt into the PI regime. Those who lead the sector and opt in early are demonstrating their commitment to leading the sector by working to establish a governance structure that all other municipalities could use to maximize their risk-adjusted returns in the future. Benefits of Founding Municipality Status To reward Founding Municipalities for being first movers and taking a leadership role in the sector, ONE Investment is offering a few incentives. Fees reduction The first incentive involves a reduction in basis points in the fee charged by ONE Investment. The reduction of 2 basis points in the fee charged by ONE Investment on all prudent investor offerings for a period of at least 10 years.

ONE JIB Representation Additionally, the two municipal treasurer representatives on ONE JIB will be selected from the Founding Municipalities; Founding Municipality treasurers will serve rotating two-year terms so each Founding Municipality will eventually have its treasurer as a member of ONE JIB.

This role is particularly important in the formative years of ONE JIB and Founding Municipalities can shape how ONE JIB operates for years to come. Treasurers who sit on ONE JIB will also be eligible to sit on any of ONE JIB’s committees. Table 2: Potential ONE JIB Committees

Committee Purpose Nomination Advises on the membership & structure of ONE JIB, recommended IPS template, Investment Plan, among other things. Client service Advises on media and content for reporting, newsletters, seminars, education, complaints process, service standards, and relationship practices New Products Advises on investment strategies, features of current offerings and preferred new offerings. Audit and Risk Oversees strategies for monitoring financial management and reporting, risk management strategies, IT systems, internal controls, etc.

Risks of Founding Municipality Status As noted previously, one of the most important considerations for municipalities conducting their due diligence on adopting the PI regime is the limitation around revoking the Prudent Investor Enabling By-law. Once a municipality adopts the PI regime, it cannot go back to the LL for the investment of its money that is not required immediately without a special regulation. This, however, applies to all

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municipalities adopting the PI regime. There are specific risks worth considering that would only apply to those who partner to establish ONE JIB. Table 3 below identifies many of these risks; ONE Investment has carefully considered each of these risks and, where there are no mitigating factors already built into the legislation, has developed plans to deal with these situations should they arise. Table 3: Risks to becoming a founding municipality and mitigating factors

Risk Mitigating Factor A Founding Municipality leaves Not an issue if remaining Founding Municipalities’ investments remain >$100M; otherwise, new JIB must be struck Founding Municipalities holdings fall below Not an issue unless they fall because a Founding $100M Municipality leaves Disagreement among Founding Municipalities Dispute resolution process is included in the ONE JIB Agreement Political change of heart ONE Investment expects to invest substantially in municipal staff, Council education to manage this risk. Council provides direction to the ONE JIB via the IPS which can adapted to reflect updated risk tolerance Change in council policy regarding long-term Council education is the first step, ONE will reserves support municipal staff in communicating the trade-offs and impacts to the IPS. Desire to exit ONE JIB Any municipality leaving must have another IB/JIB to move to or must receive a provincial regulation allowing them to return to the Legal List, as per the Act and the Regulation ONE Investment business or its PI offerings ONE would work to settle clients with a new fail provider. Poor market: many members exit at once Legislative governance was designed to minimize while returns are weak this risk by placing the control and management of the funds with an IB or JIB Cost escalation ONE Investment is a non-profit corporation founded by LAS (a corporation of AMO) and CHUMS (a subsidiary of MFOA). ONE Investment is committed to adjusting its fees on a regular basis and adjusting them to ensure fee revenues are closely aligned to budgeted projections

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Schedule A - Investment Advisory Committee Biographies

The ONE JIB will be comprised of the six members of ONE’s current Investment Advisory Committee (IAC) plus one additional member, as well as two Treasurers from ONE JIB’s founding member municipalities. The IAC has been working with ONE since November 2016 to support the Legal List offering and to prepare for Prudent Investing. In summary:

• This group of five institutional investment experts has developed an understanding of municipal finance through coaching by ONE staff and by its expert municipal finance member, Bill Hughes. • In total, they have 155 years of investment and municipal finance experience, an average of 26 years per member. • Except for Bill Hughes, they are all Chartered Financial Analyst (CFA) charterholders with distinguished careers either directly managing institutional investments or consulting to institutions on their investments. • Bill Hughes is a recognized expert on municipal finance who teaches the subject at University of Toronto’s Munk School of Global Affairs.

The IAC has worked with ONE to define an appropriate investment offering for all of Ontario’s municipalities with effective implementation. To date, their work has included the following:

• Regular review of current ONE offerings; • Confirmation of desired investment outcomes that meet municipal needs and for which prudent solutions should be designed; • Advice on the appropriate asset classes to generate those solutions and the asset allocations for the solutions; • Advice on the managers to fill those mandates; • Review of the documentation required to fulfill prudent investor offerings, including the Client Questionnaire, template Investment Policy Statement and Investment Plan.

James C.L. Clark (CPA, CA, CFA) is the President of Dunhelm Consulting and has more than 25 years of broad pension experience in pension fund management, investment consulting, marketing, sales and client service. A former manager of a $1 billion pension plan with the Bank of Montreal, he currently provides investment and communication consulting services to institutional investors and investment managers. Mr. Clark also serves on the University of Ottawa’s Treasury Committee and on several other boards and committees dealing with investment and portfolio management issues. He has lectured for York University’s MBA program and contributed to numerous pension industry publications.

Jennifer Dowty (CFA) is an equities analyst and business reporter at The Globe and Mail. She has approximately 18 years of experience working in the financial industry, of which nearly 14 years was at Manulife Asset Management. While at Manulife, Jennifer was a portfolio manager overseeing Canadian and global equity mutual funds, institutional funds, and pension plans.

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James G. Giles (CPA, CFA) retired from his role as Chief Investment Officer of Foresters Financial (Foresters), where he directly oversaw over $6 billion of investment assets, including international insurance and Canadian pension funds. James broadened the asset exposure of Foresters and hired external managers, where necessary. Prior to that, he managed real estate income trusts and preferred shares, as well as investment accounting. With over 25 years in the financial sector, he has lectured students seeking the Chartered Financial Analyst designation and the then Society of Management Accountants. He has been quoted in the media on investment matters and represented Foresters on industry groups such as the Pension Investment Association of Canada

Bill Hughes (MBA, MES) is a Senior Fellow at the Institute on Municipal Finance and Governance at the University of Toronto. Bill has over 35 years’ experience in finance and public policy in both the provincial and municipal governments. Before joining the Institute, Bill was the Commissioner of Finance and Treasurer for the Regional Municipality of York. He has held senior positions in the Ontario government, mainly at the Ministries of Finance and Infrastructure, where he was the Assistant Deputy Minister of Infrastructure Policy and Planning. Bill was a member of the board of directors of the Move Ontario Trust until its wind-up in 2017. He is a lecturer at the University of Toronto’s Munk School of Global Affairs and Public Policy, where he co-teaches a course on policy development.

Christine Tessier (CFA) is Vice-President, Investments and Treasury at CAA Club Group, where she is responsible for oversight and management of the company’s nearly $1B in pension, corporate and insurance assets. Christine brings over 16 years’ investment experience, with a specific focus in product development and design, investment consulting and strategic planning. She has experience in retail and institutional markets and has developed or researched products across the asset class spectrum, spanning straightforward and complex solutions. Christine has a Bachelor of Commerce degree from Laurentian University.

Geri James (CFA) has over 25 years’ experience designing, implementing and monitoring investment strategies for pension plans, non-profits, sovereign wealth funds, governments and other institutional investors. As well, she has designed and launched investment vehicles such as pooled funds, mutual funds and exchange traded funds. Geri spent nine years as an investment consultant with AON Hewitt followed by 17 years in various roles, including Head of Business Development, Head of Product and Chief Operating Officer, for BlackRock Asset Management Canada Limited. She was an ongoing guest lecturer on investments at Humber College. In addition to her work with The One Investment Advisory Committee, Geri is currently a Director of the Board of the Police Credit Union, Board Chair of the Wilderness Canoe Association and a founding member of Sparrow, a refugee sponsorship and resettlement program.

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As the ONE JIB is a municipal board, ONE Investment will also retain the secretarial services normally provided by a Municipal Clerk to the ONE JIB.

Denis Kelly received a Bachelor of Laws from Queen’s University and was called to the Bar in 1981. He was a Solicitor in the City of North York Legal Department from 1981 to 1987. Denis then served in municipal Clerk’s Offices in various capacities -- as Deputy City Clerk (1987 to 1991) and City Clerk (1991 to 1997) for the City of North York, Clerk-Administrator for the Town of East Gwillimbury (1998 to 1999) and Regional Clerk for the Regional Municipality of York (1999 to 2017). Over his long career in the municipal sector, Denis’ portfolio included providing legal services and leading the Council and Committee, Access and Privacy and Information Management programs for three municipalities. Denis also acted as the Corporate Secretary for the Greater Toronto Services Board between 1999 and 2001. Denis lives in Thornhill, Ontario, with his family.

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Schedule B - STEPS TO ESTABLISH ONE JOINT INVESTMENT BOARD (ONE JIB)

1. ONE Staff will work with municipal staff of each founding municipality (“Founding Municipality”) to assist in drafting a report to Council for initial direction and authority to establish ONE JIB in conjunction with ONE Investment and to opt into the prudent investor regime on or after January 1, 2019 by passing a by-law under subsection 418.1(2) of the Municipal Act, 2001 (the “Act”).

Council: (after the Founding Municipalities authorize staff in conjunction with ONE Investment to inaugural meeting of develop an agreement to establish ONE JIB, together with all related matters such council in December, as Codes, policies and appointments and to adopt the prudent investor regime on 2018) or after January 1, 2019.

2. ONE Staff will develop an Initial Formation Agreement and a ONE JIB Agreement.

3. The Initial Formation Agreement will establish ONE JIB as a joint municipal service board, authorize investment through ONE JIB of the money and investments that the Founding Municipalities do not require immediately (the “Investible Funds”) and provide for those matters necessary or desirable to facilitate the establishment and operation of ONE JIB.

4. The ONE JIB Agreement will set out the basis on which the Founding Municipalities and other municipalities that wish to participate by investing their Investible Funds through ONE JIB will be able to do so.

5. ONE Staff will develop job descriptions for the members of ONE JIB, interview and recommend the appointment of members and arrange for indemnity/insurance for the members of ONE JIB.

6. ONE Staff will develop a Code of Conduct and Conflict of Interest Policy as well as recommend an integrity commissioner (interim).

7. ONE Staff will develop a Know Your Client Framework which will be called a Municipal Client Questionnaire.

8. In light of existing municipal Statements of Investment Policies and Goals, ONE Staff will develop one or more investment policy statement “IPS” templates which reflect a range of possible investment objectives and strategies.

9. ONE Staff will formulate a monitoring system to provide assurance that investments comply with each IPS and investment plan.

10. ONE Staff will establish the mechanism for regular reviews of the IPS to assist participating municipalities in their efforts to update or amend their IPSs.

11. ONE Staff will develop guidelines to help the Founding Municipalities review and organize investments in anticipation of a transfer of their Investible Funds on or after January 1, 2019.

12. As they develop draft materials ONE Staff will periodically meet with municipal staff to review and obtain input on these policies and documents.

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13. Each Founding Municipality will complete and provide ONE Staff with its Municipal Client Questionnaire.

14. After ONE Staff has completed the various drafts and templates, and each Founding Municipality has provided the required Municipal Client Questionnaire, each Founding Municipality will work with municipal staff as they prepare reports to Council setting out their recommendations, a draft IPS, a draft investment plan that complies with the draft IPS and the related authorizing by-law (Authorizing By-law).

Council: Enact an Authorizing By-law that authorizes: the execution of the Initial (before or after Formation Agreement; the establishment of ONE JIB pursuant to that January 1, 2019) agreement; the completion of a Municipal Client Questionnaire; the approval of the IPS; the approval of a draft investment plan; and the execution of the ONE JIB Agreement, which will have a future effective date. Also authorize, approve or adopt, all the necessary Codes, Policies, and appointments set out above.

Each Founding Municipality must certify as at the day ONE JIB is established that it meets the criteria in s. 15(2) of the regulation (O. Reg. 438/97, Part II).

15. ONE JIB will hold its initial meeting at which it will approve and execute the ONE JIB Agreement following which the ONE JIB Agreement will be executed by each of the Founding Municipalities.

16. ONE Staff will consult with ONE JIB about potential updates to each IPS, each investment plan and other documents.

17. ONE Staff will assist municipal staff as they prepare reports recommending the adoption of the prudent investor regime pursuant to a Prudent Investor Enabling By-law, required updates to the IPS and related policies and decisions and they prepare the required by-law pursuant to which each Founding Municipality will opt into the prudent investor regime.

Council: (on or after Formally opt into the prudent investor regime by enacting a Prudent Investor January 2019 and Enabling By-law (under subsection 418.1(2) of the Act) with a future effective after the ONE JIB date. Approve any modifications to the IPS or other documents. Agreement has been entered into by each Founding Municipality and ONE JIB)

18. Founding Municipalities will transfer Investible Funds to ONE JIB for investment.

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Town of Whitby Staff Report whitby.civicweb.net

Report Title: Development Charge Background Study, Community Benefits Charge Strategy and Long Range Financial Plan

Report to: Committee of the Whole Submitted by: Ken Nix, Commissioner of Corporate Date of meeting: September 16, 2019 Services, Treasurer

Report Number: CS 47-19 Acknowledged by M. Gaskell, Chief Administrative Officer Department(s) Responsible: For additional information, contact: Corporate Services Department Jennifer Hess, Senior Financial Analyst

1. Recommendation: 1. That Council approves the advancement of the Development Charge Background Study and Long Range Financial Plan Update project to permit the undertaking of an update to the Development Charge Background Study, a Community Benefits Strategy and a Long Range Financial Plan; 2. That Council approves a total budget of $337,750 for these studies; 3. That Council approves the sole source for Hemson Consulting Ltd to undertake these studies; and 4. That Council approves the temporary Financial Analyst position for a period of up to 18 months. 2. Highlights: • As a result of the changes to the Development Charges Act and Planning Act made in Bill 108, and in advance of the proposed prescribed transition date of January 1, 2021, Town staff are recommending the advancement of the update to the Development Charge Background study (and By-Law)

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Report CS 47-19 Committee of the Whole Page 2 of 6

and the establishment of a Community Benefits Charge strategy (and By- Law).

• The update/creation of these By-Laws will allow the Town to collect (to the greatest defensible extent possible) development charges and community benefit charges beyond January 1, 2021. 3. Background: • The proposed changes to the Planning Act as approved in Bill 108 state that the Town requires a community benefits charge strategy and resulting By-Law prior to January 1, 2021 in order to collect for services that formerly were included in the Development Charges Act (i.e. Parks, Recreation, Libraries etc.).

• The Town’s current Development Charge By-Law expires on March 20, 2022. As a result of Bill 108, the Development Charges Act has been amended and as of January 1, 2021 the Town will only be able to collect development charges for what formerly was known as the “hard services” – roads & related assets, sidewalks, storm water, fire protection services etc. 4. Discussion: Why this is being Undertaken? • Even with the assistance of a consultant, historically on average the Development Charge Background study (DC study) and Long Range Financial Plan (LRFP) takes 19 months to complete.

• As a result of Bill 108 and the prescribed changes to the Planning Act the Town must have a Community Benefits Charge strategy (CBC strategy) and resulting By-Law approved by January 1, 2021 (16 months away).

• For efficiencies of scale for both expenditure and staff time commitment, since the Town’s development charge By-Law is expiring in less than two years, and since current cost estimates on the roads and related projects are significantly higher than recorded in the last DC study, it is recommended that the Town also update its DC study and resulting By-Law in parallel with the new CBC strategy.

• The update to the DC study / By-Law and LRFP was included in the capital forecast for 2020; the prescribed changes are advancing that commencement timeframe by one year.

• The LRFP would also be updated as a result of the DC study and CBC strategy to gain a better understanding on the financial impact to the Town as a result of the changes under Bill 108 and the current growth forecast.

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Report CS 47-19 Committee of the Whole Page 3 of 6

• Although not all of draft regulations have been released by the Province, given the tight timeframe, Staff are concerned that if the process is not started until all information is known, then there will be insufficient time to complete the requirements prior to January 1, 2021.

Development Charge Background Study Process – Major Milestones • Based on historical practice and legislative requirements the major milestones to updating the DC By-Law are:

o Calculation of Historical Levels of Service / Service Level Caps; o Growth Forecast (population and employment); o Stakeholder Consultation #1; o Growth related Capital Forecast (20+ years for Roads and Roads Related services);

o Stakeholder Consultation #2; o Asset Management Plan for Growth related Capital Forecast; o Operating Budget Impact Analysis for Growth related Capital; Forecast.

o Stakeholder Consultation #3; o Draft By-Law updated to reflect terminology, non-statutory exemptions and legislative changes;

o Draft LRFP analyzed; o Draft DC study & draft By-Law released - publically available 60 days before By-Law passes;

o Legislated Public Meeting - at least 20-days notice of the meeting is required and the DC study must be available at least 2 weeks prior to the meeting;

o Council adopts the DC By-Law; o Final DC study (if draft study was amended) and final LRFP; o The Clerk provides written notice of the passing of the By-Law no later than 20 days after the By-Law is passed; and,

o The last day for appealing the By-Law is 40 days after passing.

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Report CS 47-19 Committee of the Whole Page 4 of 6

Sole Source Request • Hemson Consulting Ltd. is one of two experienced firms (the other being Watson and Associates Economist, Ltd) that specialize in Municipal Development Charge Background Studies.

• They are the firm that is currently most familiar with Whitby in relation to the current DC study and LRFP, and understand the growth related financial pressures the Town is facing now and in the future.

• The tight timeframe is shorter than the two previous studies and the work plan / timetable will need to be as efficient as possible in order to deliver the required By-Laws on time.

• With the changes to the Development Charges Act and Planning Act as a result of Bill 108 and the prescribed transition deadline (January 1, 2021), it is anticipated that a number of municipalities will be endeavoring to update their DC study/By-Law and create a CBC strategy / By-Law in 2020, as a result the demand for both firms will be significant. It is expected the internal staff resources / capacity will also be stretched in 2019-2020 and it would be beneficial for the Town to begin the study process as early as possible.

Request for a Temporary Position • In order to facilitate the DC study, CBC strategy and LRFP and have the required By-Laws adopted by Council prior to January 1, 2021, Corporate Services is requesting approval for a temporary financial analyst position for a period of 18 months funded 50% from the capital project.

• This temporary position would provide support, and along with the other financial analysts in Corporate Services, allow the senior financial analyst to dedicate the majority of her time to facilitate the completion of the project(s) in the very tight timeframe.

• The administrative complexity of the new DC and CBC regime may require this position to be converted to a full time position.

Bill 108 Provincial Consultation on Proposed Draft Regulations for Changes to the Development Charges Act and Planning Act • In June the Province released proposed draft changes to the regulations pertaining to the Development Charges Act and new Community Benefits Authority under the Planning Act. The public commenting period closed on August 21, 2019.

• The proposed changes were not the complete draft regulations and a thorough comprehensive analysis including financial impact was not

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Report CS 47-19 Committee of the Whole Page 5 of 6

possible, but will be completed once the complete draft regulations are released.

• The Town’s response to the proposed changes regarding development Charges (ERO 019-0184) and proposed regulation pertaining to the Community Benefit Authority (ERO 019-0183) are included in attachment 1. 5. Financial Considerations: As identified in the Development Charge Background study, the DC study and LRFP are eligible to be financed 90% from development charges. It is anticipated the CBC component of the study would be applicable to the same DC percentage. The DC study / LRFP update was included in the 2019 capital budget forecast for $250,000 in 2020. The current budget request also addresses the cost for 50% of the of the 18 month temporary position to arrive at a total budget of $337,750. The remaining portion of the position will be included in the 2020 operating budget. The budget estimate included in the 2019 capital forecast, did not include the preparation of a CBC strategy. Based on the complexity of the new legislative requirement, additional budget may be required beyond the amount identified above. 6. Communication and Public Engagement: Whitby has a past practice of encouraging participation with the development community and other interested parties as the study progresses to allow questions / concerns to be addressed throughout the process. The prior DC study process had 3 stakeholder consultation meetings held during office hours, in which a number of the development community participated; and based on public feedback an additional evening session was held, in which, a couple of people attended. It is envisioned that a similar number of daytime sessions would be conducted for the updated study and additional meetings would be scheduled only if required. Under the Development Charges Act section 12(1), at least one public meeting must also be held; the municipality must make the background study available for review at least two weeks prior to the meeting and give at least 20-days notice of the meeting. Under section 10(4) the DC study must be made public at least 60 days prior to the passing of the DC By-Law by Council and under section 13(1) there is 40 days to appeal the By-Law once it is passed by Council.

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The required public consultation for the CBC strategy has not yet been provided by the Province. Corporate Services and Corporate Communications would work collaboratively to raise awareness of the process and of all stakeholder consultation meetings. 7. Input from Departments/Sources: The undertaking of a Development Charge Background study, Community Benefits Charge strategy and Long Range Financial Plan involves time commitments from every department within the organization and Whitby Public Library Staff. 8. Strategic Priorities: a. Council Goals These studies are being undertaken in advance of the January 1, 2021 transition deadline to:

• To continue the Whitby tradition of responsible financial management and respect for taxpayers; and to understand the importance of affordability and sustainability to a healthy, balanced community. b. Corporate Strategic Plan and Strategic Priorities These studies support the corporate business plan (Organization) by developing and utilizing comprehensive business and financial planning processes. 9. Attachments: Attachment 1 – Town of Whitby response to the Municipal Finance Policy Branch of Municipal Affairs in Housing dated August 21, 2019

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Attachment 1

Town of Whitby Office of the Chief Administrative Officer Corporate Services Department 575 Rossland Road East, Whitby, ON L1N 2M8 www.whitby.ca

August 21, 2019

John Ballantine, Manager Municipal Finance Policy Branch Municipal Affairs and Housing 13th Floor, 777 Bay Street Toronto, ON M5G 2E5

Re: ERO 019-0184

Purpose This letter is in response to the request for comments on ERO 019-0184 Proposed changes to O.Reg. 82/98 under the Development Charges Act related to Schedule 3 of Bill 108 – More Homes, More Choice Act, 2019.

Background Bill 108, More Homes, More Choice Act, 2019 (Bill 108) received Royal Assent on June 6, 2019. Bill 108 included changes to the Development Charges Act and the creation of a new Community Benefits Authority with the intent of making housing more affordable and development costs more predictable.

The Minister of Municipal Affairs and Housing indicated in a letter to municipalities dated June 7, 2019 that the intent of the new legislation is to maintain municipal revenues.

On June 21, 2019 draft proposed regulatory guidelines were made available by the province for the Development Charges Act, Planning Act and the new Community Benefits Authority. Municipalities have been invited to provide feedback on these proposed regulations by August 21, 2019.

Discussion The Town of Whitby is one of the fastest growing municipalities in the province. Whitby’s population is expected to grow by 56% in the next 12 years.

The Town is pleased by the province’s commitment to maintain municipal revenues and not shift any additional cost of growth to Whitby taxpayers.

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Under the existing Development Charge legislation, growth does not fully pay for the cost of growth. The current cost of growth for our taxpayers requires an increase in property taxes of 1.5% each and every year.

Any additional growth related pressures will have an impact on Whitby, and our ability to build a complete and vibrant community without impacting both affordability and quality of life for our residents. Taxpayers struggle with the current cost of growth and will object to any increased growth pressures shifted to their taxes.

The Town has participated in the analysis of the proposed regulations with the Municipal Finance Officers’ Association of Ontario (MFOA) and supports the submission made by MFOA (Attachment 1).

In addition, subject to clarity on the definitions included in the proposed changes and a review of the complete draft regulations yet to be released, the Town of Whitby has provided the following additional comments.

1. Transition – The proposed changes do not specify if a municipality needs to have a new development charge by-law in place by January 1, 2021 in advance of the discounted soft services being removed from the DC Act. Given staffing capacity constraints, limited external expertise available, and the additional time and costs to convert existing systems and processes this timeframe could be unachievable in some municipalities.

2. Scope of Types of Development Subject to DC Deferral – The purpose of the Act is to make housing more attainable. As such the Town of Whitby supports a targeted DC deferral for rental housing, non-profit housing and would support a DC deferral for non-profit institutional development , although it requests the ability to protect the municipality against a possible change of use (i.e. rental to condo) during the deferral repayment period and not just at occupancy.

The deferrals provided for Industrial and Commercial and for profit Institutional development are beyond the intended purpose of the proposed changes and as such, do nothing to support housing, but impacts a municipality’s ability to deliver services.

In addition, the increased administrative cost to a municipality to process and monitor a DC deferral program would not be eligible under the DC regime, and would become an additional burden on the taxpayer.

Any DC deferrals impacts a municipality’s cash flow and its ability to provide growth related services when needed. In particular, the roads and storm water infrastructure needs to be in place before growth related development can occur. Most of Whitby’s non-residential development charge rate is dedicated to roads and storm water infrastructure (79%). Without adequate, predictable cash flows in order to fund the required projects, a municipality is either forced to:

a) Rely on long term debt (which results in higher costs due to interest),

b) Transfer the cost of the infrastructure to the tax base, or Page 2 of 4

Page 140 of 279 Agenda Item # 4.11.

c) Defer the construction of the infrastructure and impact the municipality’s delivery of services when required.

In order to mitigate the additional cost of growth created by the DC deferral amendment, the Town of Whitby respectfully requests that the deferrals be limited to rental housing, non-profit housing and not for profit institutional development.

Clarification is also being sought to determine if the deferral is an opt-in program, or if it is automatically applied to all eligible development.

3. Period of Time for which the DC Charge Freeze would be in Place – Clarification is being sought on if the freeze applies to the DC rate at the time or on the total estimated DC charge (development type multiplied by the DC rate)? The proposed development at site plan or zoning amendment stage can change by the build / occupancy stage, as such; the Town of Whitby is requesting the freeze only applies to the DC rate.

Whitby would also like to acknowledge that current systems and processes do not capture the required data. The rate freeze introduces a new level of administrative burden and increased costs to the municipality.

There is a disconnect between a municipality’s ability to collect adequate funds when needed and a rate freeze. The cost of infrastructure has been increasing at a much greater rate than the stated inflationary rate, putting further pressure on municipalities. Although not in favour of the rate freeze, the recommended two year cap on the rate freeze minimizes the impacts of inflation and is appreciated by the Town of Whitby.

4. Interest Rate during Deferral and Freeze of Development Charges – The Town of Whitby supports the recommendation that a prescribed maximum interest rate is not proposed. However once again, as a result of the deferral and freeze of development charges, long term financial planning for a municipality will be affected; as it will be very difficult for a municipality to actually predict the levels of DC collections in the future; and when a municipality can afford to fund the required growth related infrastructure.

5. Additional Dwelling Units – The Town of Whitby appreciates the limits established for additional dwelling units.

However, clarification on the definition of ancillary structures is required. For instance, is it only within existing buildings? Does it include any building type on the property like garden suites? In addition, Whitby is seeking the ability to protect the municipality against misuse of this clause beyond its original scope, i.e. building an additional dwelling unit, then severing it from the original property without paying development charges.

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Thank you for the consideration

Sincerely, Original Approved and Signed

Matthew Gaskell K.R. (Ken) Nix, CPA, CMA Chief Administrative Officer Commissioner of Corporate Services/Treasurer [email protected] [email protected] 905.430.4300 x4316 905.430.4314

Attachment 1 – MFOA Submission Regarding ERO 019-0183 and ERO 019-0184 Cc: Mayor and Members of Council Suzanne Beale, Commissioner of Public Works Chris Harris, Town Clerk Sarah Klein, Director of Strategic Initiatives Jacqueline Long, Head of Human Resources Warren Mar, Town Solicitor John Romano, Acting Commissioner of Community and Marketing Services Roger Saunders, Commissioner of Planning Dave Speed, Fire Chief Ann McCullough, Manager Financial Planning Jennifer Hess, Senior Financial Analyst

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Town of Whitby Office of the Chief Administrative Officer Corporate Services Department 575 Rossland Road East, Whitby, ON L1N 2M8 www.whitby.ca

August 21, 2019

John Ballantine, Manager Municipal Finance Policy Branch Municipal Affairs and Housing 13th Floor, 777 Bay Street Toronto, ON M5G 2E5

Re: ERO 019-0183

Purpose This letter is in response to the request for comments on ERO 019-0183 regarding proposed new regulation pertaining to the community benefits authority under the Planning Act.

The Minister of Municipal Affairs and Housing indicated in a letter to municipalities dated June 7, 2019 that the intent of the new legislation is to maintain municipal revenues.

Discussion The Town of Whitby is one of the fastest growing municipalities in the province. Whitby’s population is expected to grow by 56% in the next 12 years.

Under the existing Development Charge legislation, growth does not fully pay for the cost of growth. The current cost of growth for our residents is an increase in property taxes of 1.5% each and every year. This has an impact on both affordability and quality

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of life for our residents.

Any further growth related pressures will have an impact on Whitby, and our ability to build a complete and vibrant community. Residents are struggling with the existing cost of growth and will object to any increased tax burden shifted from development to the taxpayer. As such, the Town is pleased by the province’s commitment to maintain municipal revenues and not shift any additional cost of growth to Whitby taxpayers.

The Town has participated in the analysis of the proposed regulations with the Municipal Finance Officers’ Association of Ontario (MFOA) and supports the submission made by MFOA (Attachment 1).

As noted in MFOA’s submission “the proposal summaries, written in general terms, do not provide adequate information to understand the full impact of changes introduced under Bill 108”. As such, complete draft regulations and adequate time to understand and test a completely new unprecedented CBC regime is required to ensure revenue neutrality is maintained for each municipality; given, it appears the amount to be collected through the CBC will be calculated by applying a percentage to the value of the developed land, up to a maximum/capped percentage.

“Soft services” does not mean unnecessary services. “Soft services” help define the community and add to the quality of life in a local community. Parks, recreation, libraries etc. are all part of a healthy and positive lifestyle that brings economic benefit and is one of the main reasons people want to locate in Whitby.

As a result, it is a significant concern that there is no longer a connection between the cost for infrastructure needs defined at the local level and a methodology to recover for them. Additional costs for administration and technology related to the new regime, as well as the acquisition of parkland and provision of other services previously provided by development under local services needs within each municipality add to the municipal burden.

It needs to be recognized that revenue neutrality and the ability to collect the funds necessary may vary significantly between municipalities depending on a municipality’s:

• current stage of development (slow grow, high growth) • current market conditions and value for land, • the type of development occurring (greenfield or infill), • existing policies for dedication of park lands or services received in lieu, • costs of administration of the complex CBC regime, and • service level needs defined by local Councils.

When the proposal summaries were released on June 21, 2019, the Minister of Municipal Affairs and Housing stated “Growth must pay for growth and it’s important that municipalities have the resources to support complete communities. By working with municipalities, we will develop a formula that protects vital revenue streams”. It is hoped that this commitment to revenue neutrality means each municipality remains whole while considering all the additional costs in addition to existing lost revenues. Page 2 of 5

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If not, local choices will need to be made impacting the timing of service delivery. This could include a further shift of cost from the developers to the taxpayers, deferral or cancelation of needed infrastructure, or reduced levels of service, since shifting more growth related costs to the taxpayer will be difficult.

Subject to clarity on the definitions included in the proposed changes and a review of the complete draft regulations yet to be released; the Town of Whitby has provided the following additional comments.

1. Transition – Details on the requirements for the Community Benefits Charge Strategy needs to be known in order to determine if the prescribed date of January 1, 2021 is achievable. Given internal administrative constraints and limited external expertise available, this timeframe could be unachievable in some municipalities. Municipalities will also incur additional administrative costs to convert existing systems and processes.

2. Reporting on Community Benefits and Parkland – The proposed regulation indicates the reporting requirements would be similar to those already reported on under the Development Charges Act and Planning Act, as such it is anticipated to have a minimal administrative impact to the Town.

3. CBC and Revenue Neutrality – It is the intention of the Town of Whitby to collect the Community Benefit’s charge. As a rapidly growing municipality, the tax base cannot bear the cost of growth alone; it has been Whitby’s past practice to have growth pay for growth to the greatest extent possible, recognizing that based on the current legislation growth will never fully pay for growth. Municipalities should not be disadvantaged under the new CBC regime.

4. Exemptions from Community Benefits – The proposed exemption list for most types of institutional development (long- term care homes, hospices, universities, colleges, Royal Canadian Legion) and non-profit housing is similar to the DC deferrals being proposed in the DC Act. The Town of Whitby supports an exemption for non- profit housing and non-profit institutional development, but requests that any for profit institutional development not be exempt. In addition, Whitby requests definition clarification on the eligible types of development and seeks protection and the ability to collect should there be a change of use of the development within a defined period after occupancy.

5. Community Benefits Formula – It is the Town of Whitby’s position that no two developments are the same, and no two municipalities are the same. The value of land is not the best determining factor when attempting to determine the community benefit’s charge. A flat charge is not equitable across various types of development within a municipality or across multiple municipalities

In addition, some developments may not be fully developing the land; i.e. residential flood plain, industrial (phased development) etc. Page 3 of 5

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We welcome the inclusion of municipalities in the Provincial Technical Working Committee that is seeking to determine the rate, and encourage the Province to establish different rates based on type of development i.e. residential / non-residential, greenfield / intensification in-fill, low / medium / high density, etc.

Every municipality within Ontario is unique and their populations and need for services vary. As such the community benefits charge should not be a “one size fits all” model based on land values without some methodology or connection to the cost of providing the services.

The additional burden from administrative costs to manage the process, land appraisals, the requirement to deduct the cost of all parkland and previously provided in lieu local services from the CBC revenues, further shifts the cost of development from the developer to the taxpayer. These additional costs should be considered eligible under a CBC regime and when determining revenue neutrality.

The proposed regulations have not currently defined when the community benefits charge would be payable or how the community benefits charge is allocated between upper and lower tier municipalities in a two tier system.

6. Appraisals of Community Benefits – It is assumed in order to get the best and most accurate land value at the time of determining the community benefits charge an appraisal will need to be completed by the municipality. This will not only increase the administrative burden and costs to the taxpayer, it will also increase the process “red tape” time.

The Town of Whitby appreciates the proposed regulation that the owner is responsible for all additional appraisal costs should they dispute the land value in the community benefits charge, but recognizes that any disputes will increase the administrative burden to the municipality.

It would be important for a municipality to develop and regularly update standard land values to minimize disputes. A methodology accepted by the development community would provide more certainty and avoid time consuming and costly disputes related to appraisal values.

7. Exclusions from Community Benefits – Although the proposed ineligible service list for the community benefits charge is identical to the current list under the DC Act, the Town of Whitby is asking for consideration to change that list.

The Town of Whitby respectfully requests that general administration headquarters of municipalities be removed from this list. As the municipality grows, the administrative need of that municipality grows. Municipal buildings are being used more as community hubs and it is the Town of Whitby’s position that a municipal building is a community benefit that should be paid for by some extent by development.

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In addition, the Town of Whitby believes that cultural facilities play a vital benefit to a community, and as such should be eligible to be funded in part by the community benefits charge. Likewise, hospitals should be an eligible service to help offset the cost to the taxpayer for a municipality’s share of a hospital. Whitby recognizes that restrictions should be set on when hospital money could be allocated; the Town of Whitby is recommending that once a future hospital site has been approved by the Province a municipality should be allowed to proceed.

8. Community Planning Permit System – The Town of Whitby currently does not have a community planning permit system, but supports the idea that it has the authority and choice to do so if deemed appropriate by Council, and should not be prescribed.

Thank you for the consideration.

Sincerely,

Original Approved and Signed

Matthew Gaskell K.R. (Ken) Nix, CPA, CMA Chief Administrative Officer Commissioner of Corporate Services/Treasurer [email protected] [email protected] 905.430.4300 x4316 905.430.4314

Attachment 1 – MFOA Submission Regarding ERO 019-0183 and ERO 019-0184

Cc: Mayor and Members of Council Suzanne Beale, Commissioner of Public Works Chris Harris, Town Clerk Sarah Klein, Director of Strategic Initiatives Jacqueline Long, Head of Human Resources Warren Mar, Town Solicitor John Romano, Acting Commissioner of Community and Marketing Services Roger Saunders, Commissioner of Planning Dave Speed, Fire Chief Ann McCullough, Manager Financial Planning Jennifer Hess, Senior Financial Analyst

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ERO # 019-0183 Proposed new regulation pertaining to the community benefits authority under the Planning Act

ERO #019-0184 Proposed changes to O. Reg. 82/98 under the Development Charges Act related to Schedule 3 of Bill 108 - More Homes, More Choice Act, 2019

Submission to the Ministry of Municipal Affairs and Housing

August 19, 2019

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Table of Contents 1.0 Introduction ...... 2 2.0 About MFOA ...... 3 3.0 A Brief History of Development Charges in Ontario ...... 3 4.0 DCs, Housing Affordability and the More Homes, More Choice Act, 2019 ...... 4 5.0 Guiding Principles ...... 5 6.0 Themes ...... 6 7.0 ERO # 019-0183 Proposed new regulation pertaining to the community benefits authority under the Planning Act, 1990 ...... 6 7.1 Transition ...... 6 7.2 Reporting on community benefits and parkland ...... 7 7.3 Exemptions from community benefits ...... 7 7.4 Community benefits formula...... 9 7.5 Appraisals for community benefits ...... 12 7.6 Excluded services for community benefits ...... 13 7.7 Community planning permit system ...... 13 7.8 Local Services ...... 15 8.0 ERO #019-0184 Proposed changes to O. Reg. 82/98 under the DCA related to Schedule 3 of Bill 108 - More Homes, More Choice Act, 2019 ...... 16 8.1 Transition ...... 16 8.2 Scope of types of development subject to DC deferrals ...... 16 8.3 Period of time for which the DC freeze would be in place ...... 18 8.4 Interest rate during deferral and freeze of DCs ...... 19 8.5 Additional dwelling units ...... 19 9.0 Administrative Burden ...... 21 10.0 Conclusion ...... 21 Appendix A: Costs in Ontario ...... 22 Appendix B: Other Concerns with the CBC Cap Methodology ...... 23

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1.0 Introduction

The Housing Supply Action Plan and the accompanying legislative and regulatory changes are an opportunity for the province to deliver meaningful changes to housing that Ontario needs. MFOA commends the province for addressing housing and growth- related challenges in Ontario. Housing affordability is a serious underlying challenge in Ontario, as more than 27% of Ontario households paid more than 30% of total income towards shelter costs at the time of the last census. This was higher than the national average of 24%. For renters in Ontario, this figure was much higher, at over 45%.1 At the same time, Ontario’s population is projected to grow by 30% by 2041, which will add even more pressure to the housing market. As the Province states in the Housing Supply Action Plan, “Ontario needs more housing, and we need it now.” MFOA agrees that there is no time like the present to address this crisis to ensure the opportunities in our future are not compromised and to ensure that people across Ontario can find the housing that meets their needs in healthy communities.

There are numerous partners who, together, play an essential role in building healthy and vibrant communities in Ontario. Municipalities, most of whom are MFOA members, are equal partners in this equation. When a municipality grows, more housing is constructed, more roads are paved, more parks are built, more schools opened, and a healthy community is formed. To minimize the impact of new development on existing residents and tax payers, and to ensure that new residents enjoy the same services as the existing, growth needs to pay for growth. MFOA is therefore encouraged by the province’s stated goal, “that municipal revenues historically collected from development charges for “soft services,” parkland dedication including the alternative rate, and density bonusing are maintained”, however, planning for growth requires forward thinking. Further, under the previous development charges arrangement, growth was not fully paying for growth, and this fact must be appropriately considered to ensure that the communities we build today are able to thrive in the future.

MFOA thanks the Province for the opportunity to provide comments on the proposed new regulation pertaining to the community benefits authority under the Planning Act, 1990, and the proposed changes to O. Reg. 82/98 under the Development Charges Act, 1997 related to Schedule 3 of Bill 108 - More Homes, More Choice Act, 2019. MFOA has prepared the following comments based on our interpretation of the information contained in the two proposals. In the spirit of informed decision-making, MFOA first requests that the full draft regulations be released by the Province for consultation. The proposal summaries, written in general terms, do not provide adequate information to understand the full impact of changes introduced under Bill 108, the More Homes, More Choice Act, 2019. As communicated in our presentation to the Standing Committee on Justice Policy and our May 31, 2019 submission on Bill 108, these changes are

1 https://www.fin.gov.on.ca/en/economy/demographics/census/cenhi16-11.html

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significant and expose the municipal sector to new risks. Once draft regulations are completed, MFOA requests that these be posted to the ERO for stakeholder comment.

2.0 About MFOA

The Municipal Finance Officers’ Association (MFOA) was established in 1989 to represent the interests of municipal finance staff across Ontario. Our membership roll includes individuals from municipalities who are key advisors to councils on financial affairs and who are responsible for handling the financial activities of municipalities. Our membership represents 99.6% of the population of the province.

MFOA has a keen interest in development charges (DCs) and has a history of advocating on this issue on behalf of the municipal sector. Most recently, MFOA presented at the Standing Committee on Justice Policy about Bill 108, More Homes, More Choice Act, 2019, and submitted a technical response to the Province’s Housing Supply Action Plan, as well as a joint response with the Ontario Regional and Single Tier Treasurers. Each submission highlighted MFOA’s long-standing position that growth should pay for growth. MFOA’s submissions received strong endorsement from our members and from other municipal associations.

3.0 A Brief History of Development Charges in Ontario

DCs are fees collected on new development and are the primary funding source for infrastructure needed to service growth in municipalities. The first Development Charges Act (DCA) in Ontario came into force in 1989. The DCA set out rules to enable municipalities to collect DCs to fund growth-related capital costs relating to new development. This legislation was broad and allowed municipalities to recover 100% of growth-related capital costs.

Since 1989 the DCA has been amended several times (1997, 2015), resulting in an overall lower level of cost recovery for municipalities2. Growth-related costs have shifted from the development that created the costs to existing property tax and ratepayers.

2 Watson & Associates’ 2010 study, “Long-term Fiscal Impact Assessment of Growth: 2011-2021,” for the Town of Milton. According to the study, after taking into consideration the various DC restrictions introduced in 1997, DCs only paid for approximately 80% of the cost of growth-related capital in Milton.

Changes introduced in 2015 were mixed for municipalities. On one hand, amendments to the DCA and O. Reg. 82/98 allowed for greater recovery of growth-related transit costs and waste diversion costs. On the other hand, the provision of landfill sites and services, as well as the provision of facilities and services for the incineration of waste remained ineligible. Further, municipalities were faced with an unfavourable adjustment to the cash-in-lieu for parkland ratio and an inability to collect voluntary payments.

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Despite these changes, DCs continue to be an important funding tool for municipalities. DCs fund growth-related costs for a range of services needed to create complete, vibrant communities.

4.0 DCs, Housing Affordability and the More Homes, More Choice Act, 2019

During the consultations on the Bill 108, More Homes, More Choice Act, 2019, a wide range of stakeholders (municipal, non-profit associations, consulting firms) voiced concerns regarding the unintended consequences of the changes to DCs for municipal finance and for housing affordability.

From a municipal perspective, moving to the new Community Benefits Charge (CBC) regime poses financial and administrative challenges and risks. As this submission will highlight, many of the proposed changes could have financial risks to municipalities that could prevent the More Homes, More Choice Act, 2019 from realizing its important goals. In addition, we are concerned about a greater administrative burden.

From a housing perspective, DCs have minimal impact on housing affordability as DCs represent approximately 5-7% of the price of a new single-family home in the GTA and Ottawa.3 A recent study by the Royal Bank and Pembina Institute that examined the factors affecting home prices in the GTA concluded that, with respect to DCs, “the increase in these charges accounts for only a small fraction of the increase in home prices.”4 Reducing DCs does not guarantee lower house prices, rather it increases the burden on municipal revenues at the expense of other critical services and capital assets.

On June 6, 2019, the More Homes, More Choice Act, 2019 received Royal Assent. As noted in MFOA’s presentation to the Standing Committee on Justice Policy, the Act turns the DCA on its head by shifting the recovery of growth-related costs of “soft” services to the Planning Act (PA).5 This shift moves the recovery of costs away from a known regime with a defined link between costs and anticipated revenues to a new framework that has yet to be fully articulated.

The Act also removes the PA’s provision for height and density bonusing and replaces it with the new CBC, which is intended to recover costs for soft services and parkland. At

3 Ontario, Development Charges Subgroup: Report to the PMFSDR Infrastructure Table and 2018 Altus Group report (refer to reference 6) 4 Cherise Burda, Priced Out: Understanding the factors affecting home prices in the GTA, Royal Bank of Canada and the Pembina Institute, November 2013, p. 15. 5 Ontario, (2013), Development Charges in Ontario: “The collection of development charges for transit is subject to a 10 per cent discount along with services such as parkland development, libraries, daycares, and recreational facilities. This broad category is generally referred to as “soft services” as opposed to “hard” services, such as roads and water which are not subject to the discount.” Note: The 10% discount for transit was removed in 2015.

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the time of Royal Assent, there were many unknowns about the mechanics and impacts of the proposed changes. It is difficult for the municipal sector to respond and plan for these changes, given how little information is known. The following comments and recommendations reflect both the absence of information and the need for information.

5.0 Guiding Principles

The following principles guide our comments: a) Growth should pay for growth.

Provincial legislation should consistently allow municipalities to recover the full cost of infrastructure related to development. As noted above, amendments to the DCA since 1989 have reduced municipalities’ overall ability to recover growth related costs. This means that existing taxpayers must pay the cost of infrastructure for new communities. The mechanisms to permit cost recovery should be efficient, as any accompanying administrative burden can result in slower provision of requisite infrastructure and services, thereby slowing housing development. b) Complete, vibrant communities are good for everyone.

Complete communities support healthy and active living for residents. They require employment opportunities and a significant array of municipal infrastructure to service residents and businesses. The services needed to support complete communities extend beyond water, wastewater and roads. No community is complete without parks, recreation facilities, rinks and other services that enable residents and businesses to thrive. Revenue is needed to finance growth related costs for a full range of services. If the CBC raises less money than the existing regime it will be more difficult to build complete communities. c) Provincial red tape costs municipalities time and money.

Reporting and robust processes and procedures are key to ensuring accountability. However, these become a costly burden when they are overly prescriptive and fail to recognize that municipalities are an order of government led by elected officials. d) Provincial legislation related to municipal governance should be enabling and permissive.

Provincial legislation can be overly prescriptive. Restrictive legislation removes decision making power from local authorities and chips away at local officials’ ability to respond to local concerns.

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6.0 Themes

Predictability and revenue neutrality have emerged as clear priorities for the Province in the Housing Supply Action Plan and the changes introduced in the More Homes, More Choice Act, 2019. MFOA commends the Province for focusing on these priorities, however cautions that relying on land values as a basis for the CBC cap works against these efforts.

7.0 ERO # 019-0183 Proposed new regulation pertaining to the community benefits authority under the Planning Act, 1990

MFOA’s comments and recommendations

7.1 Transition

The changes introduced in Bill 108 alter how municipalities recover the costs of infrastructure for most ‘soft’ services, among other changes. As part of the transition to the CBC regime, the government must develop a specialized formula to calculate caps for the CBC payable. This CBC regime is unique; it has no precedent anywhere in the world, as far as we are aware. Further, much is riding on the prescribed caps. Done incorrectly, not only will Ontarians be worse off due to reduced levels of municipal services, but development will likely slow down. This is counter to the government’s objective of increasing the supply of housing.6 Done correctly, the caps will enable municipalities to recover the costs of growth related ‘soft’ services, parkland, and density bonusing. Creating the methodology to arrive at these caps is an incredibly challenging task given the diversity of the municipal sector, the range of development that occurs, and the geography of the Province.

The consequences of error are too significant to rush the development of the caps on CBC payable. As such, MFOA recommends that:

● The Province consult on the draft regulation to provide municipalities with the opportunity to test the proposed caps in the context of their local communities; and ● The specified transition date be 18 months after the approval of the caps or the expiry date of the current DC by-law, whichever is later.

While these recommendations introduce timing uncertainty, it removes the pressure to rush the development of the formula. MFOA has also heard from members that a

6 As MFOA continues to advocate, reducing the amount of growth-related charges collected from developers does not reduce the cost of emplacing infrastructure. It merely shifts the burden to existing ratepayers.

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number of them have already undergone public consultation processes and entered into agreements with developers with respect to parklands and other services. We recommend that these agreements be recognized.

7.2 Reporting on community benefits and parkland

The ERO posting outlines the reporting requirements set out for community benefits and parkland. The proposed reporting requirements appear similar to the existing requirements for DCs under the DCA and parkland under s.42 of the PA. MFOA sees no significant issues with the proposed reporting requirements for community benefits and parkland.

7.3 Exemptions from community benefits

The following development types have been proposed to be exempt from charges for community benefits: ● Long-term care homes ● Retirement homes ● Universities and colleges ● Memorial homes, clubhouses or athletic grounds of the Royal Canadian Legion ● Hospices ● Non-profit housing

These development types are not accompanied by any definitions in the proposal. To meet the Province’s broader objectives as well as those set forward in the Housing Supply Action Plan, certain developments are understandably proposed to be exempt from a charge for community benefits. However, the lack of definitions and the scope of this list have the potential to expose municipalities to financial risk.

First, MFOA recommends that these development types be scoped and defined in alignment with definitions that exist under current legislation. Second, MFOA recommends caution and consideration of unintended consequences of exempting retirement homes, universities and colleges, and non-profit housing from a charge for community benefits.

Retirement Homes

It is estimated that by 2041, one-quarter of Canada’s population will be over the age of 65.7 There are currently 49 municipalities in Ontario with seniors’ populations of 30% or more, and with this forecasted demographic shifts, these figures will likely increase.8 For

7 D. Peters, TVO, How Ontario Communities are making themselves more senior friendly January 2019 8 Statistics Canada, 2016 Census

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many municipalities across Ontario, growth will be driven by this segment of the population, and given this reality, it no longer makes sense to provide the blanket “senior discount” for most services, including those at the municipal level. In the interest of intergenerational equality, age-based subsidies that favour nearly a quarter of the population can have financial and service delivery consequences in the future.

The Province proposes that retirement home developments be exempt from a charge for community benefits. This development type is not defined in the proposal, and the intent is unclear. Without parameters, for-profit retirement homes and condominium developments marketed at seniors stand to benefit from this exemption. At the same time, municipalities will still need to build the community facilities that will service and benefit this segment of the population, however, without the financial resources to provide the appropriate community benefits. Like services, community benefits should be financed the same way as those used by every other age group in the population spectrum.

We understand that this is a complex issue. There are high levels of senior debt as well as many seniors who have not saved adequately for retirement. Growth led by senior populations, however, is still growth; and growth needs to pay for growth. A blanket exemption on retirement homes is a departure from the existing regime and challenges the government’s goal of ensuring revenue neutrality. MFOA recommends that the Province define “retirement homes” as defined in the Retirement Homes Act, 2010, and provide municipalities with a range of options to deal with low income senior populations in their communities.

Universities and Colleges:

The Province also proposes that developments by universities and colleges be exempt from a charge for community benefits. This development type is not defined in the proposal, and the intent is unclear. For example, are privately funded colleges and/or public-private developments included in this exemption? Further, do new privately- owned student residences fall under the umbrella of “universities and colleges.” MFOA recommends that the exemption of “universities and colleges” be restricted to developments that are solely owned by academic institutions, as defined in ss. 2(1) of the Freedom of Information and Protection of Privacy Act, 1990, and excluding those defined in ss.1(1) of the Private Career Colleges Act, 2005.

Non-Profit Housing:

The Province also proposes that non-profit housing developments be exempt from a charge for community benefits. This development type is not defined in the proposal, and the intent is unclear. The Province must also give further consideration of the risk of

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potential cases whereby properties are sold by the non-profit housing corporation to for profit corporations.

To better ensure that growth pays for growth, MFOA recommends that the Province define all development types exempt from CBCs prior to the ERO posting dealing with the prescribed CBC caps. Municipalities will not be able to assess the financial impacts of the proposed changes without this information.

7.4 Community benefits formula

A consistent message throughout these comments is that MFOA believes that growth must pay for itself for municipalities to provide the infrastructure necessary to support vibrant communities. The proposed caps on the CBC payables is one of the key determinants of the future recovery potential for growth-related charges.

To partially mitigate the unintended consequences of the move to the CBC regime, the prescribed caps will need to:

1. Permit the capture of 100% of growth-related costs 2. Be indexed to reflect changing cost structures 3. Be predictable 4. Be able to reflect local circumstances

The prescribed cap will be problematic if it is too low to cover all growth-related costs or if, over the period that the cap is in place, fluctuations in the variables prevent the collection of related costs.

The cap must also be anchored in the costs to service growth. This connection exists in the current DC regime but is unclear in the proposal. As MFOA stated in its 2019 submission to the Legislative Assembly of Ontario’s Standing Committee on Justice Policy:

The existing DC regime is one that meticulously identifies the costs that are driven by growth (people, employees) and recovers them (albeit with discounts) over the relevant growth period from the various types of property. There is a link between costs and the anticipated revenues. Furthermore, the DC is updated every 5 years so the link between costs and revenues is reasonably current.

Without knowing what is in the regulation, there is a concern that this link between growth costs and the CBC will be lost and that the CBC will not be able to change over time as project costs vary. Land value, which sets a cap

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for the CBC, is not related to the cost of providing services. In addition, while revenue is capped, there is no cap to growth-related costs for ‘soft’ services.9

Anchoring the cap in costs also recognizes the unique circumstances of each municipality. For example, geography can have a significant impact on the cost of construction. According to the Altus Group’s Canadian Cost Guide 2018 (p. 13), construction costs in both Northern Ontario and downtown Toronto are15% higher than in the GTA (See Appendix A).

The cap must also reflect changing cost structures, demographic patterns, economic conditions, and other factors outside of municipal control. The US tariffs “have caused prices of steel and aluminum-based products to soar to unusual heights. Comparing construction estimates created last year to those this year, we have seen prices rise beyond the traditional/historical trend of three to four percent per annum to a blended escalation rate of five to eight percent per annum in 2018.”10 Increasing construction price index can be seen in the table below.

Municipalities capped at a fixed inflexible amount, which does not accommodate fluctuations in costs, would be unable to recover costs reflective of changing circumstances.

Table: Building construction price indexes (Q1 2017 – Q1 2019)

Statistics Canada. Table 18-10-0135-01 Building construction price indexes, by type of building

Keeping the connection between the cost of emplacing growth-related infrastructure and the cost-recovery mechanism also provides predictability to municipalities and their stakeholders. Predictability for municipalities is crucial. A municipality will not be able to

9 MFOA, (2019), “BILL 108: MORE HOMES, MORE CHOICE ACT, 2019: Submission to the Standing Committee on Justice Policy” 10 Turner & Townsend, (April 1, 2019), “How is Canadian construction being influenced by tariffs?”

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commit to growth-related works that are within the cap today only to find the cap has gone down and the portion of the works covered by the CBC is much lower tomorrow.

This problem is exacerbated by the nature of the housing market in certain parts of the province. Land values are volatile, and market fluctuations are inherently unpredictable. Land values can change based on market conditions, land speculation, interest rates, economic factors, and even natural disasters. As the Building Industry and Land Development Association outlined in its study of Parkland Dedication and Cash-in-Lieu Policies in the GTA, rising land values and discrepancies of values between and within municipalities result in inconsistent application of policies. According to that same study, land values for high-density residential development have increased upwards of 300% since 200611.

Likewise, an established percentage cap on a charge for community benefits that is based on land values could result in a situation whereby a sudden drop in land values leaves the municipality without the ability to collect adequate funds to provide the growth-related community benefits.

In some areas, land values can fluctuate throughout the year, between municipalities and even within municipalities. In addition, prescribing a consistent cap can be challenging because:

1. Less desirable neighbourhoods have lower land value but could have greater need for ‘soft’ services; 2. Less populous municipalities can have higher growth-related costs due to the availability of fewer suppliers and fewer economies of scale; and 3. It can be very costly to provide services for new residents in built up communities.12

Housing markets and house values can be volatile. As such, a fixed cap will need to be reassessed frequently enough to ensure that the CBC remains an effective tool for providing the services that support the creation of vibrant and complete communities.

Other concerns

In addition, MFOA is concerned with:

● How the cap will work in a two-tier municipality?

11 Study of Parkland Dedication and Cash-in-Lieu Policies in the GTA, prepared for the Building Industry and Land Development Association by Altus Group Economic Consulting. February 22, 2019. 12 MFOA, (2019), “BILL 108: MORE HOMES, MORE CHOICE ACT, 2019: Submission to the Standing Committee on Justice Policy”

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● What will happen to debt related to ‘soft services’? Many municipalities have issued debt to build soft services. The CBC must be sufficient to capture the costs of growth-related debt for services that have been built but still have outstanding debt servicing costs. ● How will these changes affect municipalities’ long-term plans, especially with respect to the ability to set funds aside to invest in large infrastructure projects (capital and strategic)? ● The Province’s methodology for calculating the prescribed caps (Appendix B)

As discussed, getting the community benefit formula right is critical to the future success of vibrant Ontario communities. Revenues may be capped at a prescribed percentage of land value, but the cost of emplacing infrastructure is not capped. While MFOA appreciates the Province’s current avenues for feedback, the Association highly cautions against rushing the development of the caps.

7.5 Appraisals for community benefits

MFOA has concerns regarding the administrative burden, slow pace, as well as the cost of land appraisals.

Appraisal disputes have the potential to significantly delay projects. Any delay caused by appraisal disputes is inconsistent with the province’s objective of addressing “speed”. The province stated in its Housing Supply Action Plan consultation documents, that “duplication, lack of coordination and delays add burden to the development process and increase costs for builders and homebuyers”. The proposed content for appraisal disputes adds administrative burden to the development process, which could have the effect of slowing down development. Further, on the province’s goal of predictability, any delay in the appraisals process will cause uncertainty for both the developer and the municipality.

There is also a concern about the availability of qualified appraisers, especially in smaller municipalities. Not every community has access to local qualified appraisers. This new process will increase competition for scarce qualified professionals, further delaying the collections process.

MFOA is also concerned about the additional costs of appraisals. The proposed regulation does not provide clarity for which party is responsible for the cost of an appraisal. According to a 2013 City of Toronto report to council on cash-in-lieu policies (collected under s 42 of the Planning Act), it was estimated that the City had lost over $112,000 of unrecovered appraisal fees. MFOA recommends that the Province provide clarifying language regarding cost and which party is responsible for appraisal costs, and provide municipalities with a full cost recovery mechanism.

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7.6 Excluded services for community benefits

Under the proposed regulation, certain services will be excluded from the CBC. MFOA agrees that services eligible for DCs should not be included in the CBC. The posting, however, also includes a list of proposed excluded facilities and services, including:

● Cultural or entertainment facilities ● Tourism facilities ● Hospitals ● Landfill sites and services ● Facilities for the thermal treatment of waste ● Headquarters for the general administration of municipalities and local boards

The proposed list of excluded services aligns with the list excluded under the DCA. MFOA has long held the position that there should be no ineligible services. These excluded facilities provide services that help municipalities create vibrant communities. Without a cost-recovery mechanism under the DCA or the PA, municipalities will be challenged to build these important facilities without further impinging on existing residents.

MFOA’s view is that a service is a service. MFOA recommends that there should be no restrictions on eligible services.

7.7 Community planning permit system

The community planning permit system (CPPS), also referred to as the development permit system, was introduced as a new planning tool for municipalities in 2007 under the PA. The CPPS is a land use approval framework that provides an alternative tool for municipalities to address local planning issues and streamline development.13 While typical development projects may require a number of permits including zoning, minor variance, site plans, site alterations, etc., the CPPS combines the various required permits into a single permit. Timelines for CPPS applications are 45 days compared to 120 days for rezoning, 30 days for site plan approval, and 30 days for minor variances.14 The goal is to streamline development while also achieving municipal planning objective as outlined in Official Plans and provincial planning objectives (Provincial Policy Statement, Growth Plan for the Greater Golden Horseshoe).

13 http://www.mah.gov.on.ca/AssetFactory.aspx?did=6131 14 Ibid.

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CPPS can be beneficial for municipalities that have any number of planning goals such as: - Architectural and historical preservation - Green infrastructure promotion - Compact redevelopment and intensification - Brownfield redevelopment - Transit and pedestrian-oriented development15

The CPPS is also beneficial for some municipalities, because the CPPS uses a different definition of “development” than s.41 of the Planning Act.16 Development under the CPPS is given a broader definition, which enables municipalities to expand the types of activities that would require a development permit before any of the development begins. The broader definition allows municipalities to regulate site alteration and removal of vegetation.17

In its current state, only a few municipalities have implemented a CPPS bylaw (including City of Brampton, Town of Innisfil, Town of Gananoque, and Town of Carleton Place).18 In some cases, municipalities have implemented a CPPS bylaw to encompass the entire municipality. However, many other municipalities have either initiated the process to implement a CPPS bylaw or have had the bylaw overruled in the Local Planning Appeal Tribunal (LPAT). Based on discussions with members, it is MFOA’s understanding that municipalities have been slow to move forward with the process because of the heavy front-end work required.

Implementing a CPPS bylaw requires building the foundation of a CPPS through amendments to a municipality’s Official Plan, drafting a CPPS bylaw with Council approval, going through Local Planning Appeal Tribunal (LPAT) appeals if necessary, and developing applications that will outline CPPS requirements for developers. Each step also requires extensive upfront consultation with the community and relevant stakeholders. Having adequate staff and administrative capacity is crucial to executing a CPPS bylaw.

The proposed regulation notes that as the community planning permit system also allows conditions requiring the provision of specified community facilities or services, it

15 http://www.mah.gov.on.ca/AssetFactory.aspx?did=6131 16 S.41 of the PA defines development as: the construction, erection or placing of one or more buildings or structures on land or the making of an addition or alteration to a building or structure that has the effect of substantially increasing the size or usability thereof, or the laying out and establishment of a commercial parking lot or of sites for the location of three or more trailers as defined in subsection 164 (4) of the Municipal Act, 2001 or subsection 3 (1) of the City of Toronto Act, 2006, as the case may be, or of sites for the location of three or more mobile homes as defined in subsection 46 (1) of this Act or of sites for the construction, erection or location of three or more land lease community homes as defined in subsection 46 (1) of this Act. 17 http://www.mah.gov.on.ca/AssetFactory.aspx?did=6131 18 Carleton Place CPPS Bylaw, Ganonoque CPPS Bylaw, Innisfil CPPS Bylaw, Brampton CPPS Bylaw.

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is proposed that a CBC by-law would not be available for use in areas within a municipality where a community planning permit system is in effect.19

However, it is important to clarify that under O. Reg. 173/16: Community Planning Permits, a CPPS bylaw may require specific community facilities or services in exchange for specified density or height of development.20 In other words, the stipulation echoes s.37 of the PA which will be amended and replaced with the CBC. The CPPS is not inherently a tool to recover growth-related costs, rather it is a tool for municipalities to guide specific development to an area. Municipalities are not required to include exemptions to height and density in their CPPS bylaw, and as a result, are unable to collect funds for specific community facilities or services. Similarly, in the example of the Town of Carleton Place which has a development permit system, they continue to collect DCs for development within a development permit system area.

Given the proposed exemption of CPPS-designated areas from the CBC bylaw, clarification is required to understand:

How will municipalities that use a CPPS bylaw and collect DCs continue to cover soft services?

Some municipalities that currently implement a CPPS bylaw cannot collect funds for community facilities and services. Previously, municipalities were able to collect DCs in CPPS-designated areas, which includes soft services that were taken out of eligible services under the More Homes, More Choice Act, 2019.

For municipalities that do not wish to provide height and density bonusing under their CPPS bylaw, how will they collect funds for soft services when exempt from collecting CBC? MFOA recommends that there should be no exemptions to zoning areas that can collect CBCs.

7.8 Local Services

Under Section 59 of the DCA, municipalities are provided with the authority to establish local services policies. These policies set out the costs that are the direct responsibility of the owner and that will not be funded by DCs. This same concept is needed for the CBC, not only to ensure alignment between the regimes, but also to avoid potential conflict between developers and municipalities regarding cost distributions. Currently local services policies differ across the Province to reflect local circumstances. The CBC regime should continue to provide municipalities with this flexibility and provide developers with the transparency needed to easily answer the question: what level of completion is a developer to leave a subdivision park before the municipality finishes it?

19 https://ero.ontario.ca/notice/019-0183 20 https://www.ontario.ca/laws/regulation/160173 - s.4(6).

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8.0 ERO #019-0184 Proposed changes to O. Reg. 82/98 under the DCA related to Schedule 3 of Bill 108 - More Homes, More Choice Act, 2019

The following section comments on proposed changes to O. Reg. 82/98 under the DCA.

8.1 Transition

Transition dates for proposed amendments to the DCA should mirror dates for amendments to the PA as a result of the More Homes, More Choice Act, 2019. MFOA recommends that there are no gaps when a municipality is unable to collect revenues for ‘soft’ services, parkland dedication, and density bonusing.

8.2 Scope of types of development subject to DC deferrals

The development types subject to DC deferrals are defined in the proposed changes to the DCA. MFOA recommends that:

1) institutional developments, industrial developments, and commercial developments be removed, and 2) the Province considers the risk municipalities will be exposed to in the interim between when a building permit is issued and when the final DC installment payment is due.

MFOA strongly believes that a risk reduction strategy should be developed and that mechanisms be made available in cases whereby properties change ownership before the final DC payment is due.

Municipalities have traditionally had the flexibility to make arrangements and enter into agreements on DC payment schedules for specific types of development. These arrangements reflected the unique needs of the municipality and its economic development priorities and strategies.

The proposed list of development types that will be subject to the DC deferral deviates significantly from this practice. There is a case to be made for non-profit housing, legions, long term care homes, and some rental housing developments, however, providing this flexibility to the remainder of the proposed development types does not make sense from an economic development, housing, nor municipal finance perspective.

First, MFOA is not aware of any research suggesting that industrial development promotes housing development. Permitting deferred DC payments for industrial developments may also be problematic since municipalities will still need to build the requisite infrastructure to support the development, but without the necessary cashflow.

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This may require municipalities to incur debt in order to provide the hard services required at the onset of site development. This could mean that the tax base is ultimately subsidizing the industrial development. Such an arrangement is not fair to existing ratepayers and taxpayers.

Second, the broad definitions of office buildings and shopping centres as defined under commercial property under the Assessment Act, 1990 opens up this arrangement to the following:

Office Building (as defined in ss.11(3) of O. Reg. 282/98 under the Assessment Act): a) A building used primarily for offices b) The part of a building that, but for this section, would otherwise be classified in the commercial property class if that part of the building is used primarily for offices

Shopping Centre (as defined in paragraph 1 of ss.12(3) of O. Reg. 282/98 under the Assessment Act) 1) i) A structure with at least 3 units that are used primarily to provide goods or services directly to the public and that have different occupants ii) A structure used primarily to provide goods or services directly to the public if the structure is attached to a structure described in i) on another parcel of land 2) “Shopping centre” does not include any part of an office building within the meaning of subsection 11(3).

MFOA believes that municipalities are best positioned to determine if a DC deferral on office buildings and shopping centres, as described, aligns with economic development priorities and local planning circumstances. As with industrial developments, the need for municipalities to provide the requisite infrastructure to service these developments will still exist. Without available cash flow, an undue burden will be placed on the municipal resources, and ultimately the local taxpayers will be subsidizing these developments.

Third, the definition provided for rental housing under the proposed regulation is vague and the intent is unclear. MFOA has concerns about the potential broad application of this definition. For example, could a 10 story,100-unit condominium development, with a floor of dedicated rentals be included in this development definition? If so, would the entire development be subject to deferred DC payments? Further, is there a reasonable rationale to include luxury purpose-built rentals? Are short term rentals (such as Airbnb) excluded from “rental housing”?

MFOA shares the province’s perspective that rental housing development needs to be encouraged. However, growth in rental development is still growth; and growth needs to

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pay for growth. This broad definition of rental housing for DC payment deferral will potentially expose municipalities and taxpayers to unnecessary risk. MFOA recommends that the Province further scope this definition, and limit DC deferrals to certain types of rental development.

The Province has not in this proposal, nor in the changes under Bill 108, provided safeguards to ensure municipalities receive the entirety of the deferred DC payment. Without such a tool or instrument, municipalities will face obstacles collecting any outstanding DC instalments after any potential sale or property change. One solution might be an instrument registered on title. However, this too has limitations as this would shift the responsibility of the payments to a future owner, and not the developer. In the spirit of the Housing Supply Action Plan, MFOA recommends that a mechanism to ensure rentals are not converted into market housing at occupancy needs to be in place.

8.3 Period of time for which the DC freeze would be in place

As stated in MFOA’s submission to the Standing Committee on Justice Policy, “DC rates change to reflect changes in municipal needs and cost structures. (…) Freezing DC rates too early in the process creates a structural disconnect between costs incurred and revenues received.”

MFOA believes that municipalities best understand their circumstances. Accordingly, MFOA recommends providing municipalities the authority to set their own criteria to freeze rates.

Should municipalities not be granted this authority, MFOA believes that a distinction be made between development subject to the new instalment payment plans and other development. This distinction is needed to recognize the additional collection risk being borne by municipalities by the new payment plans. For some types of development, municipalities will need to wait up to eight years (over twenty years for non-profit housing development) for full payment of DCs owing. A lot can happen in this time. As such, MFOA recommends removing the DC freeze on these developments to lessen the impact of cumulative changes. MFOA also recommends providing the authority to municipalities to have priority lien status so they have priority over prior mortgages and other encumbrances.

MFOA members have also expressed concerns with the definition of ‘approved’ with respect to site plans and zoning applications. Municipalities do not want a deficient application to be sufficient to freeze the rate. Should this be the case, it would be easy for developers to game the process, which would not hasten the supply of new homes. Only complete applications or applications where the major condition has already been met according to local practices should be acceptable.

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8.4 Interest rate during deferral and freeze of DCs

MFOA supports the Minister’s decision to not prescribe a maximum interest rate that may be charged on DC amounts that are deferred or on DCs that are frozen. MFOA encourages an enabling and permissive governance framework. The Association understands the diversity of the municipal sector in Ontario and recognizes that “one size fits all” is almost never true. The Minister’s approach is in line with these principles.

8.5 Additional dwelling units

The More Homes, More Choice Act, 2019 further reduces the number of units eligible for the DCs needed to recover the cost of growth-related infrastructure. As stated in MFOA’s submission to the Standing Committee on Justice Policy, “growth-related costs are driven by increases in population and increases in employment. Reducing DCs does not decrease the cost of growth-related infrastructure. If this type of intensification becomes significant (i.e. additional units), it will mean that there will be a shortfall in DC revenues in comparison with the amounts needed to recover growth related capital costs.”

The posting includes exemptions for additional units in three types of residential buildings: ancillary structures, new residences, and other existing buildings.

Ancillary Structures

In general, MFOA supports expressly limiting the number and size of units exempt from DCs. This includes additional dwelling units permitted in ancillary structures. The ERO posting states that “units could also be created in ancillary structures”, as well as that this will be “subject to the same rules/restrictions”. MFOA would like clarification to ensure that the whole residence (primary residence plus ancillary structure) is subject to the existing express limit in O. Reg. 82/98. For example, this would mean that a maximum of two additional units would be exempt from DCs for a single detached dwelling.

Should this not be the case, MFOA is concerned that without express limits on the number of units, parties could game the system. Creative interpretations of the regulation could include supersized ‘ancillary structures’, among other interpretations.

In addition, ancillary structures may take different forms in different municipalities. Accordingly, MFOA recommends providing municipalities with the flexibility to define the term to fit within their local context. For example, lot size, demographic trends (e.g. aging population), availability of materials, and main industry could influence the types of structure. For example, the needs in cottage country would be

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different than the needs of a college town and could result in alternative forms of structures. A one-size fits all definition may not be appropriate.

New residences

MFOA does not support extending the DC exemption to new residences but is pleased that the Province has proposed express limits on the number of units. Clarification is needed to ensure the limit applies to the whole residence as previously discussed.

Other existing residential buildings

Clarification is required with respect to the definition of ‘other existing residential buildings’. Based on the proposed amendments, MFOA is assuming it is referring to multi-residential buildings. Using MPAC’s definition, this would include residential apartment buildings, mixed residential-commercial buildings, and non-equity co- operatives.21 While we understand the wish to incentivize new rental units, not all rental units are affordable. In the second quarter of 2019, nine of the ten most expensive municipalities to live in based on average rent were in Ontario.22 Should the Province continue with the proposed amendments, rather than subsidize landlords of costly rentals, MFOA recommends limiting the definition to affordable housing units.

In addition, some housing developments contain groups of buildings. Does the 1% apply to the group of buildings or only to stand-alone buildings?

Clarification is also required to understand whether a condominium building is intended to be included as an ‘other residential building.’ What happens when an apartment is converted to a condo, and what is meant by 1% of units? The inclusion of condos is very concerning. At 1% of units, if CityPlace in Toronto was considered one development, this would allow for an additional 75 DC-exempt units, which would translate into over $2M in lost revenue for the City of Toronto.23,24 Yet, the average price

21 MPAC, (2016), “ASSESSING MULTI-RESIDENTIAL PROPERTIES IN ONTARIO”. According to pp. 4- 5, “The following MPAC property codes are used to categorize the various types of multi-residential properties with seven or more self-contained units in Ontario: 340 – Multi-residential with seven or more self-contained units (excludes row housing), Multi-residential with seven or more self-contained residential units and with small commercial unit(s), 352 – Row housing with seven or more self-contained units under single ownership, Bachelorette (converted single-family dwelling with seven or more self- contained units), 374 – Non-equity co-operative (with seven or more self-contained units)”. 22 https://rentals.ca/national-rent-report#municipal-rental-rates. Using median rent to eliminate outliers, seven of the top ten rentals were in Ontario per rentals.ca. 23 Wikipedia, CityPlace, Toronto 24 This assumes 75 units at the one-bedroom DC rate of $21,049 per the City of Toronto’s posted rates in 2018

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of a condo in Toronto was $579,000 in the first quarter of 2019.25 With the rising price of condos, it seems unnecessary to subsidize developers of unaffordable units. Especially when the new units are created through the loss of existing residents’ amenities.

9.0 Administrative Burden

The More Homes, More Choice Act, 2019 layers new administrative processes on to municipalities. Changes that will increase the administrative burden on municipalities include: ● The multi-instalment payment plans, which will require significant additional administration and coordination efforts within single tiers and between tiers in two-tier regions, especially the enforcement of payments over multiple years with possibly more than one owner ● Freezing the DC at site plan or at zone change ● The new appraisal process, which will add costs to municipalities and will add to the time required for developments to be approved.

The municipal sector needs streamlined administrative processes. Adapting to new regimes requires time and money. It also introduces collection risks to municipalities. MFOA recommends that costs to administer the DC and CBC regimes be eligible for recovery via DCs and CBCs.

10.0 Conclusion

While reviewing all of the proposed changes to the DC regime and the introduction of the CBC regime, it is important to remember that when you add people, you add cost and the proposed changes transfer these costs to the property tax and utility base. Property taxes and utility fees, however, must also be affordable for residents and businesses. Given that the property tax is the primary tax available to municipalities, addressing the housing affordability issue at the local level comes at the expense of the tax affordability problem.

25 Wong, Natalie, National Post, (2019, June 28), “Toronto condo prices see weakest growth in 5 years as tight lending rules bite”.

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Appendix A: Costs in Ontario

Costs in Ontario (Indexed to GTA)

1. Southwestern Ontario: Windsor 110 London 98 Tri-City (Cambridge, Kitchener, Waterloo) 99

2. Hamilton and Surrounding Areas 104

3. Niagara Peninsula 104

4. Barrie 105

5. Toronto: Downtown Core 115 GTA 100

6. Eastern (Kingston, Cornwall) 110 8. North (Sudbury, Thunder Bay, TransCanada Corridor) 115 Source: Altus Group

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Appendix B: Other Concerns with the CBC Cap Methodology

In addition to the concerns outlined in the comments, MFOA members have flagged several additional areas with respect to the development of the CBC caps. How will the caps capture: ● The differences in service levels across the Province ● That municipalities are dynamic and are in different stages of development ● Development can take place in phases over long time horizons ● Backward looking information, like historical costs, reflect past decisions and environments ● Parkland agreements with developers can differ between municipalities and even between projects (land dedication, in-kind services, improvements) ● Lack of existing information on in-kind contributions ● Redevelopment on same property (detached houses to rows to high rise) ● Where growth has not materialized as anticipated and DCs have fallen short of expectations ● Additional exemptions and payment deferrals imposed by the More Homes, More Choice Act, 2019, which increase the room needed via the CBC to ensure revenue neutrality

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Town of Whitby Staff Report whitby.civicweb.net

Report Title: Financial Update Report – Uncommitted Reserve and Reserve Fund Projection and Year to Date Development Charge Forecast

Report to: Committee of the Whole Submitted by: Ken Nix, Commissioner of Corporate Date of meeting: September 16, 2019 Services, Treasurer

Report Number: CS 48-19 Acknowledged by M. Gaskell, Chief Administrative Officer Department(s) Responsible: For additional information, contact: Corporate Services Department Jennifer Hess CPA CMA, Senior Financial Analyst, x 2700

1. Recommendation: 1. That report CS 48-19 is received for information. 2. Highlights: • Based on the Q2 Operating Projection and all in-year approved capital budget changes the Town’s uncommitted reserve and reserve funds are projected to total $158.5 million by the end of 2019.

• As of July 31, 2018, year to date $15.9 million of Development Charges have been collected. 87% of these funds are from residential development, and 13% from non-residential development.

• As of July 31, 2019, year to date $235 thousand of non-statutory exemptions have been paid by the town. 3. Background: As per policy a financial report is periodically sent to Council providing updated uncommitted reserve and reserve fund projected balances. The projected year

Page 172 of 279 Agenda Item # 4.12.

Report CS 48-19 Committee of the Whole Page 2 of 4

end uncommitted reserves and reserve funds shown in Attachment 1 include all known information as of August 13, 2019. 4. Discussion: Uncommitted Reserve / Reserve Fund Projection The current year end projection for the uncommitted reserve / reserve funds is $158.5 million. This represents an increase of $3.4 million from the last projection in CS 27-19. Attachment 1 of the report includes a breakdown of all reserves / reserve funds. The current projection includes the following:

• Projected financial impacts to reserves / reserve funds from the Q2 2018 Operating Projection Report.

• Approved changes to the Capital Budget via Council report or under the Capital Budget Monitoring Policy.

• Approved reserve / reserve fund transfers from report CS 27-19.

• A one-time additional Federal Gas Tax contribution from the Federal Government of $3.88 million.

• A change (increase) to the forecasted DC collections of $1.1 million for the year due to the inflationary indexing in the Town’s DC rates.

• Year to date collections of Future Specified / Subdivision contributions.

• Year to date interest applied to reserve funds by Treasury. The current uncommitted reserve / reserve fund projection will be the starting balances used in the Long Range Financial Plan and in the development of the 2020 Capital Budget and Forecast financing recommendations.

Development Charge Collections, Statutory and Non-Statutory Exemptions The uncommitted reserve and reserve fund projection includes an assumed $22.2 million of development charge collections in 2019, with 95% of the collections coming from residential development and 5% coming from non-residential development. Year to date (July 31, 2019) the town has collected $15.9 million or 71% of the assumed collections. Residential development comprises 87% or $13.8M of the total year to date collections while non-residential collections total $2.1M. The value of the West Whitby Landowners Group (WWLG) work has been adjusted in the 2019 Capital projection to reflect the agreement (WWLA) between the Town and the WWLG. Reflected in the projection is an assumption that in

Page 173 of 279 Agenda Item # 4.12.

Report CS 48-19 Committee of the Whole Page 3 of 4

2019, $4.2 million of eligible roads related DC credits will be repaid as part of the signed WWLA; year to date, $2.7 million has been repaid. The WWLA includes roads related work completed by the landowners on the Town’s behalf on Des Newman and Rossland. Year to date, there has been non-statutory DC exemption/partial exemption for a new industrial development for $235 thousand. Based on legislation, if a municipality chooses to include non-statutory DC exemptions / partial exemptions in its by-law then it must pay the required DC charges. The Town funds this from the Long Term Finance reserve. There have also been a number of statutory exemptions (included in the DC Act) in 2019. There have been 26 accessory residential units totaling $264 thousand of non-recoverable revenue; and further exemptions of $13 thousand for school boards and $269 thousand for industrial expansions within the Town. Since these exemptions are included in the DC Act the Town does not pay these foregone development charges. 5. Financial Considerations: Any projection is a point in time snapshot that will continue to change as capital project costs or actual revenue collected changes throughout the year. From a financial sustainability perspective, it is important to look at the uncommitted reserve / reserve fund balances since this is the monies available for future projects. An uncommitted balance includes the cash balance of the reserve / reserve fund at the beginning of the year less any committed funds (approved operating and capital budget) and adds in any projected in-year receipts (i.e. revenue from fees etc.). 6. Communication and Public Engagement: N/A 7. Input from Departments/Sources: N/A 8. Strategic Priorities: a. Council Goals The periodic review of the uncommitted reserve and reserve fund projections and development charge collection forecast supports Council’s goal of:

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Report CS 48-19 Committee of the Whole Page 4 of 4

b. Corporate Strategic Plan and Strategic Priorities In addition the review supports the Corporate Strategic Priority of developing and utilizing comprehensive business and financial planning processes. 9. Attachments: Attachment 1 – Uncommitted Reserve and Reserve Fund Projection as of August 13, 2019

Page 175 of 279 Attachment 1 2019 Uncommitted Reserve / Reserve Fund Projection as of August 12, 2019 All numbers are in thousands (000’s)

Asset Management Reserve / Reserve Funds

Description 2018 Uncommitted Year 2019 Budget 2019 Budget 2019 Approved In Year Current 2019 Uncommitted End Balance (unaudited) Book Receipts Book Draws Changes (draws) / Year End Balance receipts Projection

Capital $10,908 $16,656 ($20,077) ($104) $7,383 Maintenance (1)

Federal Gas $5,223 $3,894 ($3,872) $3,954 $9,199 Tax (2)

Total $16,131 $20,551 ($23,949) $3,850 $16,582

(1) The most recent Municipal Asset Management Plan (MAMP) PW 22-19 identified a ten year average annual funding requirement of $33.5M to maintain the Town’s current assets. (2) The total above reflects the one-time additional contribution to the Federal Gas Tax announced in the Federal Government’s 2019 Budget for $3.88 million.

Growth Reserve Fund

Description 2018 Uncommitted Year 2019 Budget 2019 Budget 2019 Approved In Year Current 2019 Uncommitted Page 176 of 279 End Balance (unaudited) Book Receipts Book Draws Changes (draws) / Year End Balance Projection Agenda Item # 4.12. receipts

Growth $23,477 $5,802 ($5,075) ($497) $23,707

Attachment 1 Development Charge Reserve Funds

Alternate Route $2,223 $2,394 $0 $135 $4,752

Fire (1) ($1,328) $939 ($168) $50 ($507)

General ($328) $1,013 ($1,798) $45 ($1,068) Government (1) (3)

Library (1) (3) ($537) $1,031 ($709) $47 ($168)

Non Admin $7 $163 ($715) $9 ($535) Facilities (1) (3)

Operations $392 $653 ($550) $29 $524

Parking & By- $325 $173 ($1) $10 $507 Law (3)

Parks & $35,257 $5,818 ($338) $274 $41,010 Recreation (3)

Roads & Related $16,712 $8,461 ($12,346) $20,314 $33,141 (2) Page 177 of 279 Agenda Item # 4.12.

Storm Water (1) ($1,659) $380 ($1,095) $14 ($2,360)

Waste $116 $146 $0 $8 $271

Total $51,180 $21,172 ($17,720) $20,935 $75,567

(1) As permitted under the Development Charges Act (section 35) and as approved by Council (report CS 38-15) the Town can borrow (and repay with interest) between DC reserve funds as required to finance the development charge portion of the Council approved growth related projects. Attachment 1 (2) The in-year change to the Roads and Related DC reserve fund reflects a change in the treatment for the West Whitby Landowner Agreement project(s) based on best cost estimate at the time of the projection. The project(s) (currently valued at $25.97million) has been switched from a 100% up front cost to an annual estimated repayment based on the signed agreement until 2027. The projected repayment in 2019 is $4.2 million and year to date $2.7 million has been repaid.

(3) These reserves will be affected by Bill 108 and the “soft services” DC collections shifting to a Community Benefits Charge. Draft regulations are not yet available and the impact on existing reserves is not known.

Program Reserves / Reserve Funds

Description 2018 Uncommitted 2019 Budget 2019 Budget 2019 Approved In Current 2019 Year End Balance Book Receipts Book Draws Year Changes Uncommitted Year End (unaudited) (draws) / receipts Balance Projection

Arena $1,013 $495 ($581) ($14) $914

Building Permit (1) ($1,736) $1,345 ($486) $252 ($625)

Corporate Development $469 ($300) $0 $1,000 $1,169

Dedications $1 $0 $0 ($1) $0

Employee Related $0 $0 $0 $2 $2 Benefits

Environmental Guide $24 $0 $0 $0 $24

Façade Grant $0 $0 $0 $0 $0 Page 178 of 279 Agenda Item # 4.12. Future Specified – $10,234 $0 ($204) $152 $10,182 Subdivision Contributions

Gravel Pit Rehab $81 $0 $0 $0 $81

Groveside Burial $104 $0 $0 $0 $104 Options Attachment 1 Description 2018 Uncommitted 2019 Budget 2019 Budget 2019 Approved In Current 2019 Year End Balance Book Receipts Book Draws Year Changes Uncommitted Year End (unaudited) (draws) / receipts Balance Projection

Groveside Equipment $27 $0 $0 $0 $27

Groveside Future $40 $0 $0 ($35) $5 Development

Harbour Maintenance $23 $10 ($23) $0 $10

Information Technology $2,448 $0 $0 $317 $2,765

Lynde Shores $143 $0 $0 $0 $143

Marina $442 $265 ($346) ($73) $287

Mayor’s Community $96 $110 ($110) $32 $128 Development

Municipal Election $0 $105 $0 $0 $105

Parking $2,880 $320 ($251) ($19) $2,931

Parks Cash in Lieu $8,432 $400 ($53) $19 $8,798

Performing Arts $264 $0 ($40) ($24) $200 Community Page 179 of 279 Development Fund Agenda Item # 4.12.

Road Infrastructure $432 $300 $0 ($164) $567 Repair

Roadwatch $19 $0 $0 $0 $19

Seniors Centre $36 $10 $0 $0 $46 Transportation Attachment 1 Description 2018 Uncommitted 2019 Budget 2019 Budget 2019 Approved In Current 2019 Year End Balance Book Receipts Book Draws Year Changes Uncommitted Year End (unaudited) (draws) / receipts Balance Projection

Seniors Committee $48 $0 ($11) $0 $37

Tree Planting $625 $0 $0 ($38) $587

Town Property $4,674 $0 ($1,633) $575 $3,616

Whitby Library $31 $0 $0 $0 $31 Fundraising

Whitby Soccer Dome $195 $36 $0 $1 $231

Whitby Station Gallery $30 $0 $0 $0 $30

Total $31,075 $3,395 ($4,037) $1,982 $32,414

(1) Negative balance represents the cumulative amount loaned from the One-Time Reserve Fund to this Reserve Fund as a result of the decline in building permit activity and the depletion of the reserve fund since 2013.

Page 180 of 279 Agenda Item # 4.12. Attachment 1 Stabilization Reserves / Reserve Funds

Bad Debt $251 $0 $0 $0 $251 Allowance

Contingencies $4,828 $0 $0 $0 $4,828

Insurance $1,445 $0 ($186) $5 $1,264

Tax Rate $634 $0 $0 $0 $634 Stabilization

Winter Control $1,432 $0 $0 $0 $1,432

Working Funds $1,008 $0 $0 $0 $1,008

WSIB / NEER $715 $0 ($127) $2 $590

Total (1) $10,312 $0 ($313) $7 $10,006

(1) Uncommitted balance is within the target balance established under the Contingency Reserves policy F 020. The consolidated target is a minimum of 5% and a maximum of 10% of gross expenditures.

Page 181 of 279 Agenda Item # 4.12.

Attachment 1 One-Time Reserve Fund

Description 2018 Uncommitted Year 2019 Budget 2019 Budget 2019 Approved In Current 2019 Uncommitted End Balance (unaudited) Book Receipts Book Draws Year Changes (draws) Year End Balance / receipts Projection

Long Term Capital $3,403 $1,392 ($1,258) ($3,319) $219 Financing (LTFR) (1)

(1) Approved in-year changes includes the $3 million committed in CS 27-19 ($1million for Grandview, $1 million for the Corporate Development Reserve and $1 million for corporate reorganization costs), and the costs (interior building, furnishing etc.) of the additional administrative space at 3000 Garden of $278 thousand.

Total All Reserves / Reserve Funds

All $135,578 $52,312 ($52,351) $22,958 $158,497

Page 182 of 279 Agenda Item # 4.12. Agenda Item # 4.13.

Town of Whitby Staff Report whitby.civicweb.net

Report Title: Financial Policies Update

Report to: Committee of the Whole Submitted by: Ken Nix, Commissioner of Corporate Date of meeting: September 16, 2019 Services, Treasurer

Report Number: CS 49-19 Acknowledged by M. Gaskell, Chief Administrative Officer Department(s) Responsible: For additional information, contact: Corporate Services Department Jennifer Hess, Senior Financial Analyst

1. Recommendation: 1. That Council approves the updated Disposition of Operating Surplus Policy F 010 included in Attachment 1 of this report. 2. That Council approves the Reserve and Reserve Fund Policy included in Attachment 2 of this report. 3. That Council approves the Corporate Development Reserve Policy included in Attachment 3 of this report. 4. That MD 4979 regarding the Corporate Development Reserve Policy be deemed complete and removed from the New and Unfinished Business list. 5. That Council approves the updated Growth Reserve Fund Policy F 050 included in Attachment 4 of this report. 6. That Council approves the conversion of the Asset Management Reserve into a Reserve Fund. 7. That Council approves the updated Asset Management Reserve Fund Policy F 040 included in Attachment 5 of this report.

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Report CS 49-19 Committee of the Whole Page 2 of 6

8. That Council approves the conversion of the Long Term Finance Reserve Fund into a Reserve. 9. That Council approves the updated Long Term Finance Reserve Policy F 030 included in Attachment 6 of this report. 2. Highlights: • As part of operational excellence, the annual reserve and reserve fund policy review identified a number of policies that required updating and recommends two new financial policies to increase financial transparency, these policies have been brought forward for Council’s consideration. 3. Background: Financial planning policies are reviewed annually to ensure they reflect recommended best practices and are aligned with Council’s Goals and the Corporate Strategic Plan. As required, new policies are identified and existing policies updated and brought forward for Council’s consideration and approval. 4. Discussion: The financial planning policies have been developed considering the Town’s current financial position, long range financial plan and recommended best practices of GFOA. They provide the guiding financial framework that the corporation shall follow.

Disposition of Operating Surplus Policy Policy F 010 originated in 2013, the policy included in attachment 1 has been updated to reflect changes required to the allocation of division operating surpluses into the relevant program reserve and the maintenance of reserve / reserve fund minimum target balances established by policy.

• Operating surpluses within Winter Control, Insurance, Legal and Assessment Appeals budgetary sections will be allocated to the appropriate Stabilization reserve/ reserve fund.

• Operating surpluses within the Parking Enforcement division will be allocated to the Parking Reserve Fund.

• Operating surpluses within the Building division will be allocated to the Building Reserve Fund.

• Operating surpluses within the Port Whitby Marina will be allocated to the Marina Reserve Fund.

• Operating surpluses will be used (if required) to achieve the recommended minimum balance in the Stabilization reserve category.

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Report CS 49-19 Committee of the Whole Page 3 of 6

• Operating surpluses will be used (if required) to achieve the recommended minimum balance in the Corporate Development reserve.

• Operating surpluses will be used (if required) to achieve the recommended minimum balance in the Asset Management reserve fund.

• Operating surpluses will be used (if required) to achieve the recommended minimum balance in the Long Term Finance reserve (aka. one-time reserve)

• The remaining surpluses would be allocated 50% to the Asset Management reserve fund and 50% to the Long Term Finance reserve

Reserve and Reserve Fund Policy The Reserve and Reserve Fund Policy included in attachment 2 is a new policy proposed to increase financial transparency and clarity within the organization. It is an overseeing umbrella policy that defines the types, creation, use and monitoring of all reserves and reserve funds within the Town. The Town currently has fifty reserves and reserve funds. Any individual reserve/ reserve fund policies approved by Council would be complementary to this policy, and in the absence of an individual reserve / reserve fund policy it would be the guiding policy to follow.

Corporate Development Reserve Policy The Corporate Development Reserve Policy included in attachment 3 is a new policy brought forward on Council direction new and unfinished business item MD 4979. The purpose of this reserve is to provide a funding source for the strategic initiatives relating to the corporate administrative needs of the Town of Whitby. A minimum uncommitted reserve target balance of $300,000 has been identified to address any in-year unanticipated initiatives that may arise based on previous experience. The primary funding source is from the recommended updated Disposition of Operating Surplus policy.

Growth Reserve Fund Policy Policy F 050 originated in 2013, the policy included in attachment 4 clarifies and updates the responsibilities, utilization of funds and funding sources for this reserve fund. The Growth reserve fund’s purpose is to provide a funding source for the Town’s share of the growth related capital program. The policy identifies that during the annual budget process the Treasurer shall bring forward a recommendation based on the principle of long term financial sustainability to adjust the annual tax based contribution based on the requirements of the Growth Plan, the requirements identified in the current capital budget and forecast, the long range financial plan and the current economic conditions. In 2019 the annual tax based contribution was $5.8 million. The policy establishes that the uncommitted reserve fund cannot go below $0.

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Asset Management Reserve Fund Policy Policy F 040 originated in 2013, the policy included in attachment 5 clarifies and updates the responsibilities, utilization of funds and funding sources for this reserve fund. The Asset Management reserve fund provides a funding source for the asset management of the existing Town infrastructure and assets; including lifecycle replacement and repair. The policy identifies that the corporation shall strive to work towards fully funding the 10 year average asset management requirement as identified in the Municipal Asset Management plan (MAMP) (report PW 22-19). If the annual contribution is less than the identified requirement a recommended funding formula is provided. The formula identifies that at minimum the Town shall increase the annual tax based contribution by a) an amount equal to (i) the sum of the prior year’s audited growth related capital assumptions and capital acquisitions divided by the asset(s) useful life (ii) and inflation or b) an amount equal to 1% of the tax levy, whichever is greater. This formula is similar to the formula in the current policy. The Town’s 2019 maintenance envelope (includes the Asset Management reserve fund and the Federal Gas Tax reserve fund) was $20.5 million compared to the 10 year average annual asset management requirement of $33.5 million. Based on the current infrastructure funding gap to maintain our existing assets, ongoing annual tax base increases are required to mitigate the growing infrastructure gap as the Town’s assets continue to age and require lifecycle replacement and repair. A minimum uncommitted reserve fund target balance equal to 10% of the annual tax based contribution is recommended. In 2019 the tax based contribution is $16.6 million. This requirement would allow the corporation to finance any unanticipated urgent / emergency asset management work and to provide potential funding for any higher than expected tendering costs. In 2018 an additional $1.4 million of asset management budget was approved after the original budget was approved for unanticipated work and/or higher than anticipated costs. It is also recommended that the Asset Management reserve be converted into a reserve fund, allowing annual interest to be earned and deposited into the reserve. As identified in the MAMP the infrastructure funding gap is continuing to grow, although relatively small in comparison, reserve fund interest earned would go towards funding the asset management needs of the corporation.

Long Term Finance Reserve Policy F 030 originated in 2013, the policy included in attachment 5 clarifies and updates the responsibilities, utilization of funds and funding sources for this reserve fund. The purpose the Long Term Finance reserve is to provide a funding source for the one-time needs of the corporation and any strategic initiatives or community enhancements undertaken by the Town, for example it is the funding

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Report CS 49-19 Committee of the Whole Page 5 of 6

source for the discretionary DC exemptions (non-statutory) in the current Development Charge By-Law. Beyond the Disposition of Operating Surplus policy, this reserve does not have any annual ongoing funding sources, although Council can choose to make a tax based contribution during the annual budget process. A minimum uncommitted reserve balance of $500,000 is recommended; this will allow some flexibility for Council to address any unanticipated new in-year budgetary requests for one-time or strategic initiatives and is based on previous experience. The primary funding source is from the recommended updated Disposition of Operating Surplus policy, although if there is no operating surplus a contribution from a funding source would be included in the annual budget. It is also recommended that the Long Term Finance Reserve Fund be converted into a reserve. A reserve does not earn annual interest, and the savings would help offset the impact of converting the Asset Management reserve into a reserve fund. These two reserve/ reserve fund switches are being recommended to help align the reserve/ reserve fund management with the corporate priorities. Taking care of our assets is a priority for the Town of Whitby. 5. Financial Considerations: Based on the 2018 balances, Treasury has identified the net annual interest cost at an interest rate of 2.35%.

Reserve / Reserve Fund Net Annual Interest

Convert the Asset Management reserve into a reserve fund $613,504

Convert Long Term Finance reserve fund into a reserve ($290,947)

Interest impact to the Operating budget to be addressed in the 2020 $322,557 budget process

The 2020 asset management increased contribution will be reduced by $613, 000 to offset the impact to the taxpayer for converting the Asset Management reserve into a reserve fund. The interest savings from converting the Long Term Finance reserve fund into a reserve will be reflected in the 2020 annual budget process. 6. Communication and Public Engagement: N/A 7. Input from Departments/Sources:

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The policies have been reviewed by the Senior Leadership Team and by the Policy Committee. 8. Strategic Priorities: a. Council Goals The policy updates and the new policies support Council’s Goal of

• Organization to be a high performing, innovative, effective and efficient organization by develop and utilizing financial planning processes and by focusing on making our processes better. 9. Attachments: Attachment 1 – Disposition of Operating Surplus Policy Attachment 2 – Reserve and Reserve Fund Policy Attachment 3 – Corporate Development Reserve Policy Attachment 4 – Growth Reserve Fund Policy Attachment 5 – Asset Management Reserve Fund Policy Attachment 6 – Long Term Finance Reserve Policy

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Attachment 1

Town of Whitby Policy

Policy Title: Disposition of Operating Surplus Policy Policy Number: F 010 Reference: Council Resolution #313-13 Date Approved: June 24, 2013 Date Revised: September 23, 2019 Approval: Council Point of Contact: Corporate Services, Financial Planning

Policy Statement

One of the principles of the Town’s financial planning model is to ensure that annual operating budgets are fiscally responsible and sustainable. Surplus revenues cannot be relied upon as a sustainable revenue source in future budget periods. Purpose

The purpose of this policy is to ensure that any operating budget surpluses are used to reduce the Town’s exposure to uncontrollable external factors and provide flexibility to respond to future needs. Scope This policy applies only to the Town of Whitby and shall not be applied to its committees, enterprises and outside boards, commissions and agencies for which Council is required to approve annual budget estimates or levels. Index

1. Definitions 2 2. Responsibilities 2 3. Protocol 2 4. Related Documents 3

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1. Definitions 1.1. Council means the Mayor and members of Council for the Town of Whitby. 1.2. Operating Surplus means the net excess that exists at a fiscal year-end when expenditures are less than budgeted for, or revenues are greater than budgeted for.

1.3. Reserve is an appropriation of net revenues set aside at the discretion of Council to assist the maintenance of its financial position. It does not require the segregation of assets, and may be established for any municipal purpose. Reserves do not typically earn interest unless specified by Council.

1.4. Reserve Fund is established through a by-law of Council, or by a requirement of provincial or federal legislation or for a specific purpose and segregated from the general revenues of a municipality to meet the financial requirements of a future event. Reserve Funds may be discretionary (funds authorized by Council) or obligatory (legislated funds that may only be used for their prescribed purpose). Reserve Funds typically earn interest.

1.5. Stabilization Reserve / Reserve Funds (sometimes called Contingency Reserves) are used to offset extraordinary and unforeseen expenditures requirements, revenue shortfalls and management of cash flows. This includes reserves to address volatility such as (but not limited to) winter control, tax stabilization and insurance costs.

1.6. Treasurer means the employee designated as such by Council for the position. The Treasurer shall exercise all powers and duties of the Treasurer as set out in the Municipal Act. 2. Responsibilities 2.1. The Treasurer or their designate has the authority to allocate the Operating Surplus as approved under section 3 of this policy and has the responsibility to provide an annual report to Council on the disposition of the operating fund surplus. 3. Protocol 3.1. Disposition of Operating Surplus If there is an operating fund surplus at year-end, then the surplus shall be disposed of as follows: 3.1.1. Any Operating Surplus within Winter Control, Insurance Costs, Legal Costs and Assessment Appeals budgetary sections will be transferred to the appropriate Stabilization Reserve / Reserve Fund.

Policy Title: Disposition of Operating Surplus Policy Policy Number: F 010 Page 2 of 4

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3.1.2. Any Operating Surplus within the Parking Enforcement division will be allocated as per the Parking Reserve Fund Policy. 3.1.3. Any Operating Surplus within the Port Whitby Marina will be allocated as per the Marina Reserve Fund Policy. 3.1.4. Any Operating Surplus within in the Building Services division will be allocated as per the Building Permit Reserve Fund Policy. 3.1.5. Any remaining surplus after 3.1.1 through to 3.1.4 has been applied shall be transferred to the Contingency Reserve to bring the uncommitted balance for the Stabilization (Contingency) Reserve / Reserve Funds category up to the minimum target balance level as defined in policy. 3.1.6. Any remaining surplus after 3.1.5 has been applied shall be transferred to the Corporate Development Reserve to bring the uncommitted balance up to the minimum target balance level defined in policy. 3.1.7. Any remaining surplus after 3.1.6 has been applied shall be transferred to the Asset Management Reserve Fund to bring the uncommitted balance up to the minimum target balance level defined in policy. 3.1.8. Any remaining surplus after 3.1.7 has been applied shall be transferred to the Long Term Finance Reserve to bring the uncommitted balance up to the minimum target balance level defined in policy. 3.1.9. Any remaining surplus after part 3.1.8 has been applied shall be transferred 50% to the Asset Management Reserve Fund and 50% to the Long Term Finance Reserve. 4. Related Documents 4.1. Asset Management Reserve Fund Policy F 040 4.2. Building Permit Reserve Fund Policy F 310 4.3. Contingency Reserves Policy F 020 4.4. Corporate Development Reserve Policy 4.5. Insurance Reserve Fund Policy F 160 4.6. Long Term Finance Reserve Policy F 030 4.7. Marina Reserve Fund Policy F 370 4.8. Operating Budget Process Policy F 140

Policy Title: Disposition of Operating Surplus Policy Policy Number: F 010 Page 3 of 4

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4.9. Operating Budget Monitoring Policy F 180 4.10. Parking Reserve Fund Policy F360 4.11. Winter Control Reserve Policy F 060 4.12. Workplace Safety and Insurance Board Reserve Policy F 240

This Policy is hereby approved by Council Resolution #_____ on this _____ day of ______, 20__.

Policy Title: Disposition of Operating Surplus Policy Policy Number: F 010 Page 4 of 4

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Attachment 2

Town of Whitby Policy

Policy Title: Reserve and Reserve Fund Policy Policy Number: To be assigned following Council approval Reference: Legislation, other Policies, Council Resolution #, etc. Date Approved: September 23, 2019 Date Revised: Click here to enter a date. Approval: Council Point of Contact: Corporate Services, Financial Planning

Policy Statement

The Corporation of the Town of Whitby is committed to responsible financial management. Decisions made with regards to reserve and reserve fund management are consistent with the goals set out by Council and the Corporate Strategic Plan and ensure that they respond to the changing needs and are fiscally responsible. Purpose

Under the authority of Council, reserves and reserve funds are appropriations from the Town’s net revenues designated for purposes that may extend beyond the current fiscal year. They are an integral part of the municipal budget planning process and long range financial plan that contributes to the municipality’s financial sustainability.

The primary purpose for maintaining reserves / reserve funds is to:

• Make provisions for replacement / acquisitions of assets / infrastructure that are currently being consumed and depreciated; • Avoid spikes in funding requirements of the capital budget by reducing the reliance on long-term debt borrowings; • Provide a source of internal financing; • Ensure adequate cash flows; • Provide flexibility to manage debt levels and protect the municipality’s financial position and; • Provide for future liabilities incurred in the current year but paid for in the future; • Provide stability of tax rates in the face of variable and uncontrollable factors (consumption, interest rates, changes in subsidies);

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• Provide financing for one-time or short term requirements without permanently impacting the tax rates. Scope This policy applies to all Town of Whitby reserves and reserve funds. It provides the guiding principles for the establishment, continuance and use of reserves and reserve funds and summarizes the Town’s legal authority and standards of care in relation to those financial provisions.

Reserves are set up for specific purposes. They are used to offset impacts and stabilize the operating and Capital Budgets. They typically cushion the impact of major expenditures on the tax rate in any one-year period.

Reserve Funds are typically established through a by-law of Council, or by a requirement of federal or provincial legislation i.e. Development Charges Act, for a specific purpose and segregated from general revenues of a municipality to meet the financial requirements of a future event. Reserve Funds are further sub-divided into Discretionary and Obligatory Reserve Funds. Index

1. Definitions 3 2. Responsibilities 5 3. Guiding Principles 5 4. Types of Reserves and Reserve Funds 6 5. Town of Whitby Reserve / Reserve Fund Categories 6 6. Individual Reserve / Reserve Fund Policies 7 7. Establishment of Reserves and Reserve Funds 7 8. Use and Administration of Reserve and Reserve Funds 8 9. Internal Borrowing 9 10. Investment Interest Allocation 9 11. Annual Review 9 12. Related Documents 10 Appendix 1 - Individual Reserve and Reserve Fund Policies 11

Policy Title: Reserve and Reserve Fund Policy Policy Number: To be assigned following Council approval Page 2 of 11

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1. Definitions 1.1. Asset Management Related Project means a Capital Project for lifecycle replacement or repair that extends the life of a fixed asset for PSAB purposes and or a Capital Expenditure that supports the infrastructure but does not directly impact the lifecycle of a specific fixed asset (i.e. inspection).

1.2. Balance means the uncommitted balance of a reserve and reserve fund. It is the cash balance of the reserve/reserve fund net of any approved budgetary commitments.

1.3. Capital Budget means the plan for expenditures and financing sources to complete Capital Projects or Capital Expenditures, approved in either an annual budget, in a report to Council or under the Capital Budget Monitoring and Control policy.

1.4. Capital Expenditure is determined by the nature of the work that is undertaken; it usually is in excess of $5,000 and does not specifically impact a single fixed asset. It includes (but is not limited to) studies, roads crack sealing program etc. It can occasionally be one-time in nature, but usually the expenditure has a benefit lasting more than one year.

1.5. Capital Forecast means the forecasted plan for expenditures and financing sources to complete Capital Projects or Capital Expenditures presented in the annual budget. Typically this forecast is nine years (Capital Budget and nine years Capital Forecast).

1.6. Capital Project means any expenditure incurred to acquire or improve land, buildings, engineering structures, and to purchase machinery and equipment. It includes vehicles, office furniture and software applications. Normally, it has a benefit lasting more than one year, and results in the acquisition or extension of the life of a fixed asset or the betterment of an existing asset.

1.7. CBC (Community Benefits Charge) means a development related charge as calculated in the Community Benefits Charge Strategy and as defined in the Planning Act.

1.8. Council means the Mayor and members of Council for the Town of Whitby. 1.9. Development Charges means a development related charge as calculated in the Development Charge Background Study and resulting by-law and as defined in the Development Charges Act.

1.10. Discretionary Reserves and Reserve Funds are created by Council to set aside revenue to finance future expenditures for which Council has the authority to spend money pursuant to the Municipal Act.

1.11. Federal Gas Tax Reserve Fund funds are allocated to projects that meet the guidelines per the Federal Gas Tax Agreement.

Policy Title: Reserve and Reserve Fund Policy Policy Number: To be assigned following Council approval Page 3 of 11

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1.12. Future Specified Contributions are development related payments pertaining to new sub-division agreements between the Town of Whitby and an outside party. Payments collected usually pertain to the construction / maintenance of infrastructure that is needed to service the sub-division. Monies are considered to be deferred revenue until spent and are deposited into an interest bearing account. For the sake of uncommitted reserve financial reporting, Future Specified Contributions are considered to be part of the Program Reserve/Reserve Fund category.

1.13. Internal Borrowing means the borrowing of funds from one reserve / reserve fund to another. The borrowed funds are subject to interest and repayment as outlined in the Council authorization.

1.14. GAAP means Generally Accepted Accounting Principles. 1.15. Growth Plan means all growth related studies undertaken by the municipality including but not limited to the Development Charge Background Study as identified in the Development Charges Act and the Community Benefits Strategy as identified in the Planning Act.

1.16. Growth Related Project means a Capital Project or Capital Expenditure required to plan for future growth in the Town of Whitby and / or maintain existing service levels as the Town’s population grows.

1.17. Obligatory Reserve Funds are charges levied or received under the authority of federal and provincial legislation and Town by-laws (i.e. Development Charges Act, Planning Act). Legislation stipulates that revenue received for special purposes are segregated from the general reserves of the Town. These amounts have been collected but the related services have yet to be performed. These amounts will be recognized as revenue in the fiscal year the services are performed.

1.18. Program means a service area of the Town (i.e. Arena, Parking, etc.). 1.19. PSAB means Public Sector Accounting Board. 1.20. Reserve is an appropriation of net revenues set aside at the discretion of Council to assist the maintenance of its financial position. It does not require the segregation of assets, and may be established for any municipal purpose. Reserves do not typically earn interest unless specified by Council.

1.21. Reserve / Reserve Fund Contribution is an authorized deposit into a reserve / reserve fund either from a tax based source, year-end operating surplus or other reserve / reserve fund. A reserve contribution is not internal borrowing and is not subject to repayment.

1.22. Reserve Fund is established through a by-law of Council, or by a requirement of provincial or federal legislation or for a specific purpose and segregated from the general revenues of a municipality to meet the financial

Policy Title: Reserve and Reserve Fund Policy Policy Number: To be assigned following Council approval Page 4 of 11

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requirements of a future event. Reserve Funds may be discretionary (funds authorized by Council) or obligatory (legislated funds that may only be used for their prescribed purpose). Reserve Funds typically earn interest.

1.23. Stabilization Reserve / Reserve Funds (sometimes called Contingency Reserves) are used to offset extraordinary and unforeseen expenditures requirements, revenue shortfalls and management of cash flows. This includes reserves to address volatility such as (but not limited to) winter control, tax stabilization and insurance costs.

1.24. Town means the Corporation of the Town of Whitby. 1.25. Treasurer means the employee designated as such by Council for the position. The Treasurer shall exercise all powers and duties of the Treasurer as set out in the Municipal Act. 2. Responsibilities 2.1. Council has the responsibility upon the recommendation of the Treasurer to approve the authorization to establish reserves and reserve funds, and to consolidate and close reserves and reserve funds as outlined in the policy and as required under legislative requirements. 2.2. The Treasurer or their delegate has the responsibility to: 2.2.1. Recommend reserves and reserve funds be established, maintained and used in compliance with this policy, the Financial Control policy, PSAB and GAAP guidelines and governing legislation. 2.2.2. Conduct at minimum an annual administrative review of the reserves / reserve funds based on the parameters in the policy, 2.2.3. Provide the authority to consolidate and close any Discretionary Reserves and Reserve Funds as a result of the administrative review and report to Council on the actions taken, and 2.2.4. Provide recommendations to Council to consolidate and close any Obligatory Reserve Funds. 3. Guiding Principles 3.1. Reserves and reserve funds are governed by the provisions and requirements of the Municipal Act, 2001 and its regulations; Public Sector Accounting Board (PSAB) and Generally Accepted Accounting Principles (GAAP). 3.2. All reserves and reserve funds shall be established, maintained and used for a specific purpose authorized by Town policy, statute or by-law.

Policy Title: Reserve and Reserve Fund Policy Policy Number: To be assigned following Council approval Page 5 of 11

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3.3. Reserves and reserve funds are established and utilized by the Town to assist the municipality maintain financial sustainability by;

• Buffering the impact of unusual or unplanned cost increases or revenue curtailment;

• Providing financial flexibility to respond to extraordinary environmental or other events;

• Providing financing for Capital Projects, Capital Expenditures and Program operations, ensuring that capital assets/infrastructure is available to meet the needs of a growing community and existing assets are properly maintained, and replaced; and,

• Avoiding spikes in funding requirements or future liabilities and to manage long term debt levels. 3.4. Town reserves and reserve funds shall be supported by Council approved policy, and where required by-laws that support financial planning of the fund by;

• Identifying contribution sources and projected disbursements required to meet planned future obligations to be funded;

• Ensuring disbursements from reserves/reserve funds are used for their intended purposes and have Council approval; and

• Ensuring the sustainability of Town Programs by providing planned annual contributions for the maintenance of stabilization reserves at target levels and for the future asset management / growth related replacement / acquisition of Town assets and infrastructure. 4. Types of Reserves and Reserve Funds 4.1. Obligatory – A reserve fund created when a senior government statute and/or agreement requires that revenue received for special purposes be segregated from the general revenues of the municipality. Obligatory Reserve Funds are to be used solely for the purpose prescribed for them by statute or agreement. 4.2. Discretionary – A reserve or reserve fund created by Council to set aside revenue and/or cost savings to finance a future expenditure for which Council has the authority to spend money. 5. Town of Whitby Reserve / Reserve Fund Categories 5.1. The Town of Whitby currently categorizes its reserves and reserve funds into 6 categories; Asset Management, Growth (tax based), Growth (other), Program, Stabilization and One-Time.

Policy Title: Reserve and Reserve Fund Policy Policy Number: To be assigned following Council approval Page 6 of 11

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5.2. The Asset Management category consists of the tax based Asset Management Reserve (discretionary) and the Federal Gas Tax Reserve Fund (obligatory). This category of reserves is used to fund the Town’s capital asset management requirements. 5.3. The Growth (tax based) category consists of the Growth Reserve Fund (discretionary). This category is used to fund the Town’s share of capital growth costs as outlined in the Growth Plan. 5.4. The Growth (other) category consists of the various development based contributions as identified in the development charge by-law and community benefits charge by-law. This category is used to fund the development’s share of capital growth costs as outlined in the Growth Plan. 5.5. The Program Category consists of a number of reserves and reserve funds (discretionary and obligatory) that are used to address expenditures in either the capital or operating budgets which result from cyclical spending / revenues, to provide financing for program specific assets / expenditures. 5.6. The Stabilization Category consists of a number of reserves and reserve funds (discretionary) that are used to offset in-year revenue shortfalls or expenditure overages due to unforeseen or emergency situations. The category can also be used to manage one-time tax risk (tax rate stabilization reserve) or ongoing internal risk (insurance reserve). 5.7. The One-Time Category consists of the Long Term Finance Reserve Fund (discretionary). The category can be used for the one-time needs of the Town and for any strategic initiatives / community enhancements undertaken by the Town. 6. Individual Reserve / Reserve Fund Policies 6.1. The Treasurer may choose to bring forward for Council’s consideration individual reserve / reserve fund policies for specific reserves / reserve funds. 6.2. The individual reserve / reserve fund policy would specify the purpose of the reserve / reserve fund, the utilization of funds, funding sources and the uncommitted target balance level and would be applicable to only the reserve / reserve fund identified in the policy. 6.3. Individual reserve and reserve fund policies have been established for the corporation, but are not limited to the list included in Schedule 1 of this policy. 7. Establishment of Reserves and Reserve Funds 7.1. Council, on the recommendation of the Treasurer or their designate, may establish a reserve or Discretionary Reserve Fund, where advisable, and shall establish an Obligatory Reserve Fund where required pursuant to legislation or contract.

Policy Title: Reserve and Reserve Fund Policy Policy Number: To be assigned following Council approval Page 7 of 11

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7.2. The authorizing report which recommends the establishment of a reserve or reserve funds must include the following

• Statement of Purpose;

• Rationale for appropriate funding level;

• Initial contribution, if any;

• Contribution and withdrawal policy; and

• Criteria for review. 8. Use and Administration of Reserve and Reserve Funds 8.1. The Treasurer or their designate shall review uncommitted reserve and reserve fund balances on an ongoing basis to ensure the Town is well positioned to meet its long-term financial commitments and take advantage of financial opportunities that may arise. 8.2. All appropriations to or from reserves or reserve funds must be in accordance with Town policies, a Council resolution or an approved budget document. 8.3. The Treasurer, or their designate, subject to compliance with legislative and policy restrictions, determine if:

• The use of a reserve or reserve fund is an appropriate funding source for a Program in the Operating or Capital Budget.

• Funds should be contributed to a reserve or reserve fund, and if so, the funding source. 8.4. If funds are withdrawn from a reserve or reserve fund, and not required, they shall be returned to their original source. If the original source cannot be traced or has been closed, the funds shall be transferred to a reserve/reserve fund determined by the Treasurer. 8.5. Approval of funding to and from the reserves and reserve funds will be in accordance with the Town’s established policies or by Council resolution. 8.5.1. The Treasurer, may recommend to Council a contribution (not Internal Borrowing) be authorized to a tax supported reserve or reserve fund to:

• Bring the reserve / reserve fund up to the recommended uncommitted target balance level, or to

• Reduce pressure on future years’ expected tax rates based on the Long Range Financial Plan, Capital Budget and Forecast, Development Charge Background Study and /or the Community Benefits Charge Study.

Policy Title: Reserve and Reserve Fund Policy Policy Number: To be assigned following Council approval Page 8 of 11

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8.6. Year to date inflows and outflows from each reserve and reserve fund shall be reported to Council periodically through the uncommitted reserve / reserve fund projection report.

• Reserve funds with specific legislated reporting requirements shall also be reported to Council annually on their transactions in accordance with the requirements of the legislation i.e. Development Charges Act / Planning Act. 8.7. The use of monies in reserves and reserve funds is subject to compliance with this policy. 9. Internal Borrowing 9.1. Internal Borrowing to cover interim servicing requirements or internal financing is permissible, subject to any legislative restrictions, Council authorization, the Town’s Debt Management policy and the following requirements.

• Establishing and documenting a repayment plan, not to exceed a reasonable term or the life of the need / asset.

• Applying interest, equivalent to the Town’s interest earnings on its investment portfolio or as prescribed by legislation governing specific reserves funds to the outstanding amount borrowed. 10. Investment Interest Allocation 10.1. Interest earned on the investment of reserves and reserve funds shall be allocated in accordance with the Town’s Investment policy. 11. Annual Review 11.1. Reserves and reserve funds shall be reviewed annually (at a minimum) to ensure they are still meeting the needs of the Town. 11.1.1. Overall, the review includes an evaluation of the alignment of the Town’s existing reserves and reserve funds to the current strategic goals and evolving Program pressures, looking at opportunities to consolidate similar funds to improve financial flexibility. 11.1.2. Any Discretionary Reserves / Reserve Funds with no historic financial activity for the past 3 years, and no forecasted financial activity in the Capital Forecast and Long Range Financial Plan shall be subject to a review to determine if the reserve / reserve fund should be closed. 11.1.3. The results of the review shall be reported in the year-end uncommitted reserve and reserve fund balance financial report to Council and shall include a list of actions taken / recommended actions (requiring authorization), subject to legislative restrictions on;

Policy Title: Reserve and Reserve Fund Policy Policy Number: To be assigned following Council approval Page 9 of 11

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• Closure of those reserves and reserve funds that have accomplished their purpose;

• Opportunities for consolidation;

• The disposition of any remaining funds; and

• Any necessary changes to policy. 12. Related Documents 12.1. Annual Capital Budget and Forecast Policy F150 12.2. Capital Budget Management and Control Policy F170 12.3. Debt Management Policy F290 12.4. Financial Control Policy F280 12.5. Investment Policy F100

Appendices

Appendix 1 Individual Reserve and Reserve Fund Policies

This Policy is hereby approved by Council Resolution #_____ on this _____ day of ______, 20__.

Policy Title: Reserve and Reserve Fund Policy Policy Number: To be assigned following Council approval Page 10 of 11

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Appendix 1 - Individual Reserve and Reserve Fund Policies • Arena Reserve (Program, Discretionary)

• Asset Management Reserve Fund (Asset Management, Discretionary)

• Building Permit Reserve Fund (Program, Obligatory)

• Contingency Reserve (Stabilization, Discretionary)

• Corporate Development Reserve (Program, Discretionary)

• Environmental Guide Reserve (Program, Discretionary)

• Federal Gas Tax Reserve Fund (Asset Management, Obligatory)

• Growth Reserve Fund (Growth, Discretionary)

• Insurance Reserve Fund (Stabilization, Discretionary)

• Long Term Finance Reserve (One-Time, Discretionary)

• Marina Reserve Fund (Program, Discretionary)

• Mayor’s Community Development Fund (Program, Discretionary)

• Parking Reserve Fund (Program, Discretionary)

• Parks Reserve Fund (Program, Obligatory)

• Tree Planting Reserve (Program, Discretionary))

• Town Property Reserve Fund (Program, Discretionary)

• Winter Control Reserve (Stabilization, Discretionary)

• Workplace Safety and Insurance Board Reserve (Stabilization, Discretionary)

Policy Title: Reserve and Reserve Fund Policy Policy Number: To be assigned following Council approval Page 11 of 11

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Attachment 3

Town of Whitby Policy

Policy Title: Corporate Development Reserve Policy Number: To be assigned following Council approval Reference: Legislation, other Policies, Council Resolution #, etc. Date Approved: September 23, 2019 Date Revised: Click here to enter a date. Approval: Council Point of Contact: Corporate Services, Financial Planning

Policy Statement

This is a policy governing the use and administration of the discretionary Corporate Development Reserve. Purpose

The purpose of the reserve is to provide a funding source for the strategic initiatives relating to the corporate development needs of the Town of Whitby. Scope This policy applies to management of the funds reserved for corporate development needs as identified in the Operating and Capital Budgets.

Index

1. Definitions 2 2. Responsibilities 2 3. Utilization of Funds 2 4. Funding Sources 3 5. Reserve Target Balance 3 6. Related Documents 3

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1. Definitions 1.1. Capital Budget means the plan for expenditures and financing sources to complete Capital Projects or Capital Expenditures, approved in either an annual budget, in a report to Council or under the Capital Budget Monitoring and Control policy.

1.2. Capital Expenditure is determined by the nature of the work that is undertaken; it usually is in excess of $5,000 and does not specifically impact a single fixed asset. It includes (but is not limited to) studies, roads crack sealing program etc. It can occasionally be one-time in nature, but usually the expenditure has a benefit lasting more than one year.

1.3. Capital Forecast means the forecasted plan for expenditures and financing sources to complete Capital Projects or Capital Expenditures presented in the annual budget. Typically this forecast is nine years (Capital Budget and nine years Capital Forecast).

1.4. Capital Project means any expenditure incurred to acquire or improve land, buildings, engineering structures, and to purchase machinery and equipment. It includes vehicles, office furniture and software applications. Normally, it has a benefit lasting more than one year, and results in the acquisition or extension of the life of a fixed asset or the betterment of an existing asset.

1.5. Council means the Mayor and members of Council for the Town of Whitby. 1.6. Treasurer means the employee designated as such by Council for the position. The Treasurer shall exercise all powers and duties of the Treasurer as set out in the Municipal Act. 2. Responsibilities 2.1. The Treasurer or their designate has the authority to utilize the reserve as approved under section 3 of this policy. 3. Utilization of Funds 3.1. The reserve can be used to fund the capital projects or capital expenditures related to corporate development strategic initiatives. Projects can include (but are not limited to) corporate strategic plans and administrative studies for human resources, administrative facility needs and organizational design. 3.2. The reserve can also be used to fund the operating expenditures related to the corporate development strategic initiatives. 3.3. Usage of the reserve must be identified in the Council approved annual operating budget, the annual Capital Budget and Forecast, in a subsequent report to Council or approved via the Capital Budget Management and Control policy and reported in financial report to Council.

Policy Title: Corporate Development Reserve Policy Number: To be assigned following Council approval Page 2 of 3

Page 205 of 279 Agenda Item # 4.13.

4. Funding Sources 4.1. There is no current ongoing contribution to this reserve beyond the Operating Surplus Disposition policy (if applicable). 4.2. Council can choose to make a tax based contribution during the annual budget approval process. 4.3. The Treasurer can bring forward a report for Council’s consideration recommending a reserve transfer into this reserve. 4.4. As per the Capital Budget Monitoring and Control policy, any budget remaining from a closed Capital Project or Capital Expenditure originally funded from the Corporate Development reserve would be returned to the Corporate Development reserve. 5. Reserve Target Balance 5.1. The minimum uncommitted reserve target balance is $300,000. 5.2. The maximum uncommitted reserve target balance has not been established. 6. Related Documents 6.1. Capital Budget Monitoring and Control Policy F 170 6.2. Operating Surplus Disposition Policy F 010 6.3. Reserve and Reserve Fund Policy

This Policy is hereby approved by Council Resolution #_____ on this _____ day of ______, 20__.

Policy Title: Corporate Development Reserve Policy Number: To be assigned following Council approval Page 3 of 3

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Attachment 4

Town of Whitby Policy

Policy Title: Growth Reserve Fund Policy Number: F 050 Reference: Council Resolution #313-13 Date Approved: June 24, 2013 Date Revised: September 23, 2019 Approval: Council Point of Contact: Corporate Services, Financial Planning

Policy Statement

This is a policy governing the use and administration of the discretionary Growth Reserve Fund. Purpose

The purpose of the reserve fund is to provide a funding source for the Growth Related Projects of the Town of Whitby to maintain existing service levels as the Town’s population increases. Scope This policy applies to the Growth Reserve Fund contributions included in the annual operating budget and the expenditures for Growth Related Projects included in the Capital Budget and Forecast.

Index

1. Definitions 2 2. Responsibilities 2 3. Utilization of Funds 2 4. Funding Sources 3 5. Reserve Fund Target Balance 3 6. Related Documents 3

Page 207 of 279 Agenda Item # 4.13.

1.5. Council means the Mayor and members of Council for the Town of Whitby. 1.6. Growth Plan means all growth related studies undertaken by the municipality including but not limited to the Development Charge Background Study as identified in the Development Charges Act and the Community Benefits Strategy as identified in the Planning Act.

1.7. Growth Related Project means a Capital Project or Capital Expenditure required to plan for future growth in the Town of Whitby and / or maintain existing service levels as the Town’s population grows.

1.8. Treasurer means the employee designated as such by Council for the position. The Treasurer shall exercise all powers and duties of the Treasurer as set out in the Municipal Act. 2. Responsibilities 2.1. The Treasurer or their designate has the authority to utilize the reserve fund as approved under section 3 of this policy. 3. Utilization of Funds 3.1. The reserve fund can be used for the Town’s share of Capital Project costs and Capital Expenditures associated with the Growth Plan capital program(s) or other approved Growth Related Capital Project/Expenditure for the Town of Whitby as specified in the purpose of this policy.

Policy Title: Growth Reserve Fund Policy Number: F 050 Page 2 of 3

Page 208 of 279 Agenda Item # 4.13.

3.2. The reserve fund can be used for the Town’s share of annual long term debt repayments associated with the Growth Plan capital program(s) or other approved Growth Related Project for the Town of Whitby as specified in the purpose of this policy. 3.3. Usage of the reserve fund must be identified in the Council approved annual budget and forecast, in a subsequent report to Council or approved via the Capital Budget Management and Control policy and reported in financial report to Council. 4. Funding Sources 4.1. The funding for this reserve fund comes from a taxed based contribution as identified in the annual operating budget. 4.1.1. During the annual budget process the Treasurer shall bring forward a recommendation based on the principle of long term financial sustainability to adjust the annual contribution based on the requirements identified in the Growth Plan, the requirements identified in the current Capital Budget and Forecast, Long Range Financial Plan and the current economic conditions. 4.1.2. At a minimum, the annual contribution must equal the Town’s growth related total annual long term debt repayment amount, including tax based debt, development charge based debt and community benefits charge based debt. 4.2. As per the Capital Budget Monitoring and Control policy, any budget remaining for a closed Capital Project /Capital Expenditure originally funded from the Growth Reserve Fund would be returned to the Growth Reserve Fund. 4.3. The annual interest allocated by Treasury to this reserve fund. 5. Reserve Fund Target Balance 5.1. The minimum uncommitted reserve fund target balance cannot go below $0. 5.2. At maximum, the reserve fund target level equal to the Town of Whitby’s total share of growth as identified in the Growth Plan. 6. Related Documents 6.1. Capital Budget Monitoring and Control Policy F 170 6.2. Reserve and Reserve Fund Policy

This Policy is hereby approved by Council Resolution #_____ on this _____ day of ______, 20__.

Policy Title: Growth Reserve Fund Policy Number: F 050 Page 3 of 3

Page 209 of 279 Agenda Item # 4.13.

Attachment 5

Town of Whitby Policy

Policy Title: Asset Management Reserve Fund Policy Number: F 040 Reference: Legislation, other Policies, Council Resolution #, etc. Date Approved: June 24, 2013 Date Revised: Click here to enter a date. Approval: Council Point of Contact: Corporate Services, Financial Planning

Policy Statement

This is a policy governing the use and administration of the discretionary Asset Management Reserve Fund. Purpose

The purpose of the reserve fund is to provide a funding source for the Capital Projects related to the asset management of existing Town of Whitby infrastructure and assets; including lifecycle replacement and repair that extends the life of the asset for PSAB purposes and / or includes Capital Expenditures to fund activities to support the assets (i.e. inspection). Scope This policy applies to the Asset Management Reserve Fund contributions included in the annual operating budget and the expenditures for asset management projects included in the Capital Budget.

Index

1. Definitions 2 2. Responsibilities 2 3. Utilization of Funds 3 4. Funding Sources 3 5. Reserve Fund Target Balance 3 6. Related Documents 3

Page 210 of 279 Agenda Item # 4.13.

1. Definitions 1.1. Capital Acquisitions means the assets acquired / purchased / constructed by the Town of Whitby (fleet, equipment, sidewalks, roads etc.)

1.2. Capital Assumptions means the assets assumed by the Town of Whitby as a result of a subdivision assumption (roads, sidewalks, streetlights, storm water ponds etc.). The assets constructed by a developer as part of the subdivision agreement become Town of Whitby assets and are included in the MAMP.

1.7. Council means the Mayor and members of Council for the Town of Whitby. 1.8. MAMP means the Municipal Asset Management Plan for the Town of Whitby that is updated annually.

1.9. PSAB means the Public Sector Accounting Board 1.10. Treasurer means the employee designated as such by Council for the position. The Treasurer shall exercise all powers and duties of the Treasurer as set out in the Municipal Act. 2. Responsibilities 2.1. The Treasurer or their designate has the authority to utilize the reserve fund as approved under section 3 of this policy and in addition will report annually on the shortfall status of the funding relative to the MAMP needs identified.

Policy Title: Asset Management Reserve Fund Policy Number: F 040 Page 2 of 4

Page 211 of 279 Agenda Item # 4.13.

3. Utilization of Funds 3.1. The reserve fund can be used to finance the Capital Projects or Capital Expenditures associated with the asset management program within the Town of Whitby as specified in the purpose of this policy. 3.2. This reserve fund can also be used for the annual long term debt repayments associated with the asset management program with the Town of Whitby as specified in the purpose of this policy. 3.3. Usage of the reserve fund must be identified in the Council approved annual Capital Budget and Forecast, in a subsequent report to Council, or approved via the Capital Budget Management and Control policy and reported in financial report to Council. 4. Funding Sources 4.1. The funding for this reserve fund comes from a taxed based contribution as identified in the annual operating budget. The Town of Whitby shall strive to work towards fully funding the 10 year average asset management requirement as identified in the MAMP. 4.1.1. If the annual contribution is less than the average identified contribution, at a minimum, the town shall annually increase the contribution by a) an amount equal to (i) the sum of the prior year’s audited growth related Capital Assumptions and Capital Acquisitions divided by the asset’s useful life (ii) and inflation, or by b) an amount equal to 1% of the tax levy, whichever is greater. 4.2. As per the Capital Budget Monitoring and Control policy, any budget remaining for a closed Capital Project or Capital Expenditure originally funded from the Asset Management Reserve Fund would be returned to the Asset Management Reserve Fund. 4.3. Funding also comes from any Operating Surplus allocated under the Disposition of Operating Surplus policy (if applicable). 4.4. The annual interest allocated by Treasury to this reserve fund. 5. Reserve Fund Target Balance 5.1. At minimum, the uncommitted reserve fund target balance cannot go below 10% of the annual tax based contribution. 5.2. At maximum, the reserve fund target level is equal to the 25 year average annual MAMP requirement. 6. Related Documents 6.1. Capital Budget Monitoring and Control Policy F 170

Policy Title: Asset Management Reserve Fund Policy Number: F 040 Page 3 of 4

Page 212 of 279 Agenda Item # 4.13.

6.2. Disposition of Operating Surplus Policy F 010 6.3. Reserve and Reserve Fund Policy

This Policy is hereby approved by Council Resolution #_____ on this _____ day of ______, 20__.

Policy Title: Asset Management Reserve Fund Policy Number: F 040 Page 4 of 4

Page 213 of 279 Agenda Item # 4.13.

Attachment 6

Town of Whitby Policy

Policy Title: Long Term Finance Reserve Policy Number: F 030 Reference: Council Resolution #313-13 Date Approved: June 24, 2013 Date Revised: September 23, 2019 Approval: Council Point of Contact: Corporate Services, Financial Planning

Policy Statement

This is a policy governing the use and administration of the discretionary Long Term Finance Reserve also called the One-Time Reserve. Purpose

The purpose of the reserve is to provide a funding source for the one-time needs of the Town of Whitby and any strategic initiatives or community enhancements undertaken by the town. Scope This policy applies to management of the funds reserved for one-time expenses as identified in the Operating and Capital Budgets and the capital costs associated with any strategic initiatives or community enhancements.

Index

1. Definitions 2 2. Responsibilities 2 3. Utilization of Funds 2 4. Funding Sources 3 5. Reserve Target Balance 3 6. Related Documents 3

Page 214 of 279 Agenda Item # 4.13.

1.5. Council means the Mayor and members of Council for the Town of Whitby. 1.6. One-Time Reserve means the Long Term Finance Reserve. 1.7. Treasurer means the employee designated as such by Council for the position. The Treasurer shall exercise all powers and duties of the Treasurer as set out in the Municipal Act. 2. Responsibilities 2.1. The Treasurer or their designate has the authority to utilize the reserve fund as approved under section 3 of this policy. 3. Utilization of Funds 3.1. The reserve fund can be used for the one-time (non-recurring) Operating costs. 3.2. The reserve fund can be used to finance a Capital Project or Capital Expenditure associated with any strategic initiatives / community enhancements undertaken by the town. 3.3. The reserve fund can be used to finance any long term debt repayments as approved by Council.

Policy Title: Long Term Finance Reserve Policy Number: F 030 Page 2 of 3

Page 215 of 279 Agenda Item # 4.13.

3.4. The reserve fund can be used to pre-commit future liability commitments to mitigate uncertainty of future funding streams. 3.5. Usage of the reserve fund must be identified in the Council approved Annual Budget and Capital Forecast, in a subsequent report to Council or approved via the Capital Budget Management and Control policy and reported in financial report to Council. 4. Funding Sources 4.1. The current funding for this reserve fund comes from any operating surplus allocated under the Disposition of Operating Surplus Policy (if applicable). 4.2. Council can choose to make a tax based contribution during the annual budget approval process. 4.3. As per the Capital Budget Monitoring and Control policy, any budget remaining from a closed Capital Project or Capital Expenditure originally funded from the One-Time Reserve would be returned to the One-Time Reserve. 5. Reserve Target Balance 5.1. The minimum uncommitted reserve fund target balance is $500,000. 5.2. The maximum reserve fund target level has not been established. 6. Related Documents 6.1. Capital Budget Monitoring and Control Policy F 170 6.2. Disposition of Operating Surplus Policy F 010 6.3. Reserve and Reserve Fund Policy

This Policy is hereby approved by Council Resolution #_____ on this _____ day of ______, 20__.

Policy Title: Long Term Finance Reserve Policy Number: F 030 Page 3 of 3

Page 216 of 279 Agenda Item # 4.14.

Town of Whitby Staff Report whitby.civicweb.net

Report Title: Acquisition of Easement for Multi Use Path – South- East Corner of Brock Street North and Taunton Road East

Report to: Committee of the Whole Submitted by: Ken Nix, Commissioner of Corporate Date of meeting: September 16, 2019 Services/Treasurer Suzanne Beale, Commissioner of Public Report Number: CS 50-19 Works

Department(s) Responsible: Acknowledged by M. Gaskell, Chief Corporate Services Department Administrative Officer Public Works Department For additional information, contact:

Horace Look, Project Engineer, Capital Projects

1. Recommendation: 1. That the Town obtain an easement over Part 1, Plan 40R-30630, at the southeast corner of Brock Street North and Taunton Road East, (the “Easement”) as shown on Attachment 1 to this report; 2. That a by-law be brought forward authorizing the acquisition of the Easement; 3. That the Mayor and Clerk be authorized to execute the necessary documents to give effect thereto.

2. Highlights: • Staff requires Council approval to acquire the Easement for the purpose of the construction of a multi-use path.

Page 217 of 279 Agenda Item # 4.14.

Report CS 50-19 Committee of the Whole Page 2 of 3

3. Background:

As part of Durham Region’s Brock Street North widening project, the Town will construct a multi-use path on the east side of Brock Street North between Rossland Road and Taunton Road. This multi-use path is part of the core active transportation network with trip generators which include churches, restaurants, shops, neighbourhoods, parks, and retirement/institutional uses. The path will connect to existing active transportation facilities on Rossland Road and Taunton Road and to proposed facilities on Dryden Boulevard and Whitburn Street/Woodlands Avenue. Multi-use paths are friendly to all users and a preferred facility type both for large and small-wheeled devices such as wheelchairs, bikes and scooters, as well as pedestrian users. As Whitby’s active transportation network becomes more robust, it is anticipated that this multi-use path will be heavily used by both recreational and utility users. On the east side of Brock Street North at approximately 150 m south of Taunton Road, there is a pinch point where the future boulevard is not wide enough to construct the proposed multi-use path. As such, the Town approached the property owner and requested an Easement for the construction of the multi-use path. 4. Discussion: Staff have been in discussions with the owner of the property at the south-east corner of Brock Street North and Taunton Road East and the owners have agreed to provide the Easement and have signed a letter of intent. The Easement required is approximately 1,821 square feet and adjoins an existing easement in favour of the Region of Durham for a sanitary sewer. The Region’s easement renders the small sliver required by the Town unusable by the owners of the property. The conveyance of the land to the Town of Whitby, for a nominal value would be required of any future development application. As there is no existing development application, there was no obligation for the owner to convey the Easement to the Town. After much negotiation with the owner and their solicitors, it was agreed that the Town would pay the sum of $10,000, legal fees to the owner not to exceed $1,000 and disbursements not to exceed $150. The purchase price equates to $5.49 per square foot which is well below the going rate for commercial property. 5. Financial Considerations: The total cost for the Easement and construction of the multi-use path is within the funding of $300,000 available in the Capital Budget.

Page 218 of 279 Agenda Item # 4.14.

Report CS 50-19 Committee of the Whole Page 3 of 3

6. Communication and Public Engagement: As the construction of the multi use path is part of a Region road project, the Region is responsible for all public communication/consultation with local residents regarding the details of this project. 7. Input from Departments/Sources: Public Works and Corporate Services have worked jointly throughout the preparation of this report. 8. Strategic Priorities: a. Council Goals

• To become the destination of choice for visitors; to realize the economic, cultural and social potential of our downtowns, waterfront, green spaces and major attractions; to support and facilitate new community events and increase recreational opportunities along our waterfront. 9. Attachments: Attachment 1 – 40R-30630 - Easement

Page 219 of 279 Agenda Item # 4.14.

Attachment 1

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Town of Whitby Staff Report whitby.civicweb.net

Report Title: 2019 Operating Projections Report as at July 31, 2019

Report to: Committee of the Whole Submitted by: Ken Nix, Commissioner of Corporate Date of meeting: September 16, 2019 Services/Treasurer

Report Number: CS 51-19 Acknowledged by M. Gaskell, Chief Administrative Officer Department(s) Responsible: For additional information, contact: Corporate Services Department Barry Bolt, Financial Analyst x2397 Melanie Derdaele, Financial Analyst x2230

1. Recommendation: 1. That report No. CS 51-19 of the Commissioner of Corporate Services / Treasurer is received as information. 2. That the Treasurer be authorized to draw from reserves/reserve funds as required for the purposes of addressing the actual year-end position. 2. Highlights: • As at July 31, 2019, the Town is projecting an overall surplus of approximately $2,084K. The primary factors driving this projected position include benefit savings of $697K, other payroll savings of $548K and increased tax revenues of $850K. 3. Background: As per the Town’s Operating Budget Monitoring Policy (F 180), the Treasurer will coordinate and report on budget performance on a periodic basis. Staff have committed to providing Council with reports on current operations. This is the second of three projection reports for 2019. This report includes information available to July 31, 2019.

Page 221 of 279 Agenda Item # 4.15.

Report CS 51-19 Committee of the Whole Page 2 of 5

4. Discussion: Departments have provided information contained within this report. For further detail on departmental variances please see Attachment 1 at the end of this report. The following is a summary of the major items making up the projected 2019 surplus:

Summary of Major Year-End Variances 2019 Q2 2020 Budget Impact (unaudited) Surplus (Pressure)

Net Salary and Benefit $998K ($339K)

Gapping ($450K)

Group Benefits $547K $547K

Benefits $150K

Development Related Fees $59K $15K

Tax Revenues $850K $450K

Legal Fees ($70K) ($35K)

Hydro $186K

Fuel $95K

Professional Fees ($100K) ($100K)

Various other net savings / (pressures) ($181K) ($414K)

Net Savings $2,084K $124K

% of 2019 Operating Budget Expenses 1.6%

2019 Projections The Town is projecting an overall surplus of approximately $2,084K for 2019.

This surplus includes net salary and benefits savings $1,245K. These savings are mainly from group benefits savings based on actual rates versus budgeted rates $547K and increased single versus family benefit savings $150K offset by job evaluation

Page 222 of 279 Agenda Item # 4.15.

Report CS 51-19 Committee of the Whole Page 3 of 5 adjustments ($222K). Other net salary and benefit savings, less budgeted gapping, is projected to be approximately $770K. Offsetting these savings includes Human Resources related pressures from professional fees ($100K), and increased legal fees ($70K). The group benefit savings of $547K are expected to be ongoing and will be reviewed further and reflected in the 2020 budget. Any potential impacts resulting from the corporate re-organization have not been factored into the projections. It is also important to note that the Town currently does not have a budget provision for personnel related pressures resulting from job evaluation adjustments, severance payments, or other personnel related changes. Any of these impacts will place additional pressures on the Town’s projected year end position.

The 2019 projections include additional revenues from development related fees of $59K, of which $15K is expected to be sustainable into future years. Additional tax revenues of $850K are contributing to the overall surplus. This increase is from supplementary tax revenues of $750K as a result of a facility that was expected to be exempt, being deemed as taxable, as well as increased tax penalties of $100K. Additional revenues of $450K are expected to be ongoing and will be reviewed in the development of the 2020 budget.

Hydro savings are projected at $186K due to rate and consumption savings at Town facilities, earlier than budgeted final conversions of LED streetlights and revised estimates for 1855 Whitby Innovation Accelerator.

Fuel savings are estimated at $95K with favourable year to date gasoline and diesel prices versus budget.

Offsetting these savings are other net pressures of ($181K) from various sources. The 2019 budget reflected increased development related revenues as a result of the Development Related Fees By-Law Report (CS 47-18) that was completed in 2018. The 2019 budget reflects ongoing utility savings due to hydro rate savings as well as savings through the ICI program. The 2019 budget also included ongoing efficiency savings as identified through the 2018 quarterly projections and through the development of the 2019 budget. These 2019 budget impacts are also included in the ongoing review and development of the Long Range Financial Plan. The 2019 budget included expected interest rate increases for March and July. While there have not been any rate changes thus far in 2019, the year to date investments have provided for additional interest income. Currently there are no projected variances; however this will be reviewed again in the third quarter. The Q2 Operating Projection includes items that will have an ongoing impact on the 2020 Budget of $124K. In addition to the items detailed above, various other net savings / pressures of ($414K) include: operating impact for additional leased space at the Garden Street location per CAO 16-19 ($200K); estimates for growth related waste

Page 223 of 279 Agenda Item # 4.15.

Report CS 51-19 Committee of the Whole Page 4 of 5 collection in West Whitby ($118K); Special Collection Fee Revenue ($73K) due to the need for a streamlined payment platform to support the program; and miscellaneous other ($23K). There are projected variances impacting transfers to and from reserves / reserve funds that do not have an overall tax impact. These are detailed in Attachment 1. 5. Financial Considerations: The Town is projecting an overall surplus of $2,084K for 2019 as at July 31, 2019. Staff will continue to monitor the Town’s overall financial status and will provide an update in conjunction with the 2020 Budget Target Report. The main items impacting the 2019 projected surplus include overall benefit savings of $697K, other payroll savings of $548K and increased tax revenues of $850K. The expected future impacts from this projection are approximate net savings of $124K. This will be reviewed further through the 2020 budget process. 6. Communication and Public Engagement: Not Applicable 7. Input from Departments/Sources: Information in this report was provided by the various departments. 8. Strategic Priorities: a. Council Goals • To continue the Whitby tradition of responsible financial management and respect for taxpayers; and to understand the importance of affordability and sustainability to a healthy, balanced community. b. Corporate Strategic Plan and Strategic Priorities 1. People We will foster an inclusive environment where employees can experience job satisfaction and rewarding careers. OBJECTIVES: 1.1. Recognize and celebrate successes 1.3. Empower Staff

2. Organization We will be a high performing, innovative, effective and efficient organization. OBJECTIVES:

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Report CS 51-19 Committee of the Whole Page 5 of 5

2.1. Continually improve how we do things by fostering innovation and focusing on making our processes better 2.3. Develop and utilize comprehensive business and financial planning processes 2.5. Enhance our efforts at informing and engaging staff and community

3. Customer (note: customer is defined as both external and internal) We will provide a consistent, optimized and positive customer service experience. OBJECTIVES: 3.1. Design service delivery around customer needs 9. Attachments: Attachment 1 – 2019 Projections by Department

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Attachment 1 CS 51-19

Q2-2019 Projections by Department The following is a summary of the 2019 Operating Budget Year-End Projections by Department.

Town of Whitby Department Projected as % of of Q2 Budgeted Surplus / Department (Deficit) Expenditure

Executive and Legislative $33K 2.3% Chief Administrative Office ($363K) (5.2%) Legal and Bylaw Services $40K 1.5% Corporate Services $469K 5.4% Fire and Emergency Services $153K 0.7% Public Works $519K 1.8% Community Services $293K 1.5% Planning and Development Services $61K 0.9% Grants ($1K) 0.0% Corporate Revenue and Expenses $1,330K 4.5% Subtotal Departmental Surplus $2,534K 2.1% Budgeted Gapping ($450K) (1.5%) Total Surplus $2,084K 1.6%

Executive and Legislative

2019 is projecting an overall surplus of approximately $33K. These projected savings are from administrative type expenses based on historical trends.

Chief Administrative Office

2019 is projecting a pressure of ($363K). There is a net pressure from salary and benefits of ($127K) as a result of job evaluation adjustments and required temporary staff. The new Director of Strategic Initiatives will be funded from capital in 2019, as approved in the 2019 budget. The projection includes Human Resources related pressures of ($135K) from legal fees and required consulting fees for unforeseen legislated investigations and interventions. There are further pressures related to union negotiations ($20K) and recruitment ($50K). Increased promotional expenses of ($40K) are expected based on the 2019 Corporate Communications work plan. Other variances result in net savings of $9K.

Page 226 of 279 Agenda Item # 4.15.

Attachment 1 CS 51-19 Legal and Bylaw Services

2019 is projecting an overall surplus of $40K. There is a pressure from Legal Fees of ($35K) as a result of ongoing Local Planning Appeal Tribunal (LPAT) and legislative issues resulting in projecting the full budget to be used in the first half of 2019. Any new litigation matters will produce further pressures in 2019. There is also a pressure for books & subscriptions ($5K) based on actual requirements. There are projected increased revenues from animal adoptions $5K, business licenses $15K and administrative fees $4K as a result of increased volumes. The projection also includes net salary and benefits savings $47K as a result of staff vacancies and step savings offset by an unbudgeted summer student to enforce the BBQ restriction provisions of the Parks By-law at Heydenshore Kiwanis Park. Additional savings of $7K are a result of changes to the telephone call in services for Animal Services. Other savings from various accounts $2K.

Corporate Services

2019 is projecting an overall surplus of $469K. This includes net savings from salary and benefits of $301K as a result of staff vacancies and step savings offset by job evaluation adjustments and required temporary staff. There are additional revenues from increased tax penalties of $100K. As a result of staff vacancies within the Technology and Information Services division, there will be software and IT maintenance contracts savings of $75K, as well as data communications savings of $25K. These savings are offset by lost revenue on Freedom Mobile leases ($38K) as a result of an expected 7 month delay. Other net savings from various accounts $6K.

Fire and Emergency Services

2019 is projecting an overall surplus of approximately $153K. There has been an increase in the number of call outs resulting in projected additional external recoveries of $20K. Salaries and benefits are projecting an overall savings of approximately $130K. This savings is contributed to temporary vacancies throughout 2019, partially offset by increased overtime and job evaluation adjustments. There are 8 new recruits starting in September 2019 to fill vacant positions. These new hires will result in the department being temporarily over compliment which will help reduce required overtime, however this over compliment is only temporary based on expected retirements in 2020. Other net savings from various accounts $3K.

Public Works

2019 is projecting a surplus of $519K and is comprised of the following:

Page 227 of 279 Agenda Item # 4.15.

Attachment 1 CS 51-19 • Engineering is projecting an overall surplus of $254K in 2019. Increased revenues from other administration fees of $44K based on 2018 actuals and existing contracts. There are additional recoveries of $124K related to West Whitby due to an extension of our memorandum of understanding with the West Whitby Landowners Group. The overall surplus includes salary and benefit vacancy savings of $145K, offset by job evaluation adjustments of ($22K) and a pressure from Crossing Guards of ($20K) based on historical requirements. Council resolution # 28-19 approved additional costs of ($24K) per year for the next two years for a temporary Climate Change Specialist required to deliver the Municipalities for Climate Change Innovation Program. The projection also includes additional savings from traffic related expenditures $5K and administrative type expenses $2K. • Operations is projecting an overall surplus of $265K. Salary and benefit savings from staff vacancies and step savings net of overtime and job evaluation adjustments are $326K. Utiltity savings are $73K driven by an earlier than budgeted conversion of the final LED lights and rate and consumption savings at the Operation Centre. Fuel rate savings are $74K. A delay in the implementation of the Special Collection Fee results in revenue pressure of ($73K). Vehicle and equipment repairs are ($68K) due to an increased amount of waste fleet engine repairs and parks lighting and splash pad repairs. Additional contract winter maintenance of ($73K). Other net savings of $6K.

Community Services

2019 is projecting an overall surplus of $293K. Salary and benefit savings from staff vacancies, job evaluation adjustments and step savings net of overtime and other wage related expenses are $266K. Rate and consumption savings in hydro are $115K, water savings $39K offset by other utilities ($7K). Recreation program related revenue pressures net of related expense savings are ($28K) including weather related losses in ball and soccer permit fees; ice rentals due to a change in Hockey Canada rules in youth ice time; instructional and public swim with a closure of the CRC for maintenance; loss or change in advertising/sponsorship revenue; and a reduction in gym memberships offset by an increase in fitness program revenue. Building repairs & maintenance across the Town’s facilities are ($42K). Estimated 2019 operating expenses for additional Garden St. leased office space per CAO 16-19 ($50K).

Planning & Development Services

2019 is projecting savings of $61K. There are increased revenues from Planning Fees $15K as a result of increased fees through the 2018 Development Related Fee Study, as well as savings from salary and benefits $45K as a result of staff vacancies and step

Page 228 of 279 Agenda Item # 4.15.

Attachment 1 CS 51-19 savings offset by job evaluation adjustments. There are further savings from administrative type expenses $1K based on historical trends.

Grants

2019 is projecting an overall pressure of ($1K). There are savings for grants to taxable charities of $20K as a result of some charities missing the application deadline. Offsetting this is a projected pressure of ($21K) as a result of Council’s decision to increase the seniors grant from $300 to $400.

At the February 19, 2019 Budget Meeting, Council directed that the property tax rebate for low income seniors and disabled property owners be increased from $300 to $400 per year and that the Treasurer be directed to report back on opportunities to fund the increase without an impact to the tax levy. This directed change is projecting a pressure of ($21K). The Treasurer is recommending using the savings identified in this report to offset this pressure.

Corporate Revenue and Expenses is projecting overall savings of $880K.

• Taxation is projecting a surplus of $914K. There are increased supplementary tax revenue $750K as a result of the GO facility that was expected to be mostly exempt, but is now deemed as fully taxable. The ARB decisions have continued to experience a slow down into 2019, so while the backlog still exists the new scheduling system continues to delay hearings, resulting in expected savings of $200K. This is partially offset by a pressure of ($10K) as a result of a shortfall in payment in lieu tax revenues and ($26K) from vacant unit/building rebates as the program winds down in its final year. • Corporate Revenue and Expenses and Reserve/Reserve Fund Transfers is projecting a pressure of( $34K) (net of gapping). There are expected benefit savings of $547K based on the actual benefit rates for 2019, as well as increased single vs. family benefit savings of $150K. There are other payroll related pressures of ($193K) related to staff turnover and job evaluation adjustments. Corporate Revenue and Expenses includes corporately budgeted gapping of ($450K) related to salary and benefits and ($70K) related to administrative type expenses. These savings will be reflected through projections in individual departments. Savings resulting from the final 2019 Region of Durham water rates budgeted in Corporate Revenue and Expenses was reallocated to departments ($18K).

Contributions to/from reserves and reserve funds within departments

2019 Items affecting reserve transfers that have no impact on the overall results are:

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Attachment 1 CS 51-19 • Building Services is projecting additional transfers to the Building Permit Revenue Reserve Fund ($252K) as a result of net salary and benefit savings $348K for staff vacancies offset by increased overtime of ($60K). The vacant positions have been getting filled and will continue to be filled as required based on demand from West Whitby and Brooklin Expansion. There are increased administrative service contracts of ($19K), professional services costs of ($10K) and office supplies ($10K) based on requirements for West Whitby. There are other savings from projected fuel costs $3K.

• Parking Services is projecting increased salary and benefit costs ($34K) as a result of job evaluation adjustments, offset by $25K savings as a result of staff turnover. There are savings associated with the security contract of $15K. As a result of the staffing gaps there is a projected pressure on parking fines of ($65K). This is partially offset by unanticipated revenues of $30K for usage of Lot 4 from January to May. As a result of these net pressures the transfer to the Parking Reserve Fund will be reduced by $30K from the budget amount of $320K to a projected transfer of $290K.

• The Marina is projecting a reduced contribution to the Marina Reserve Fund of ($37K) due to weather and high water related impacts on revenue ($52K) offset by vacancy and other expense savings of $15K.

• The contribution to the Arena reserve is projecting a shortfall in ice surcharge revenue of ($20K) to $475K due to the associated reduction of ice rentals.

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Town of Whitby Staff Report whitby.civicweb.net

Report Title: Metrolinx – Whitby GO Station Naming Rights

Report to: Committee of the Whole Submitted by: Warren Mar, Commissioner of Legal and Date of meeting: September 16, 2019 By-law Services/Town Solicitor

Report Number: LS 14-19 Acknowledged by M. Gaskell, Chief Administrative Officer Department(s) Responsible: For additional information, contact: Legal and By-law Services Warren Mar, Commissioner of Legal and By-law Services/Town Solicitor, x4342

1. Recommendation: 1. That Council endorses the comments to Metrolinx contained in Report LS 14-19 regarding Metrolinx’s attempt to sell naming rights to GO Stations, including the Whitby GO Station. 2. That Council direct staff to send to Metrolinx and the Minister of Transportation a copy of this report and a letter highlighting Council’s endorsed position regarding the sale of GO Station naming rights. 2. Highlights: • Metrolinx is exploring the opportunity of selling GO Station naming rights to sponsors.

• Metrolinx has included the Whitby GO Station on the initial list of possible naming rights opportunities.

• The Town owns property located at the Whitby GO Station which Metrolinx currently leases to provide additional parking for GO train users.

• Metrolinx opened a 60-day comment period for stakeholders on August 1, 2019.

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Report LS 14-19 Committee of the Whole Page 2 of 5

• Town staff do not object to Metrolinx’s attempt to sell naming rights to its GO Station, but they have the following comments: (a) any sale of naming rights or signage should not eliminate or significantly diminish the use of the name “Whitby” in the GO Station signage; (b) working in partnership with Metrolinx, the Town should be consulted before the final partner is chosen, to ensure the partner is appropriate for the community and to allow the Town to discuss potential municipal advertising options with the selected partner; and (c) the sale of naming rights shall not extend to the Town- owned leased parking lot, as the existing lease does not permit Metrolinx to offer the Town’s property as part of this initiative. 3. Background: Metrolinx is an agency of the Government of Ontario, overseeing GO Transit, PRESTO, and UP Express. Metrolinx recently announced that it is embarking on a massive transformation of the GO Rail network, with the intention of providing its customers with improvements to its train service. On August 1, 2019, Metrolinx posted a Request for Information (“RFI”) seeking an Expression of Interest from any party interested in an opportunity to secure Station Naming Rights (please see Attachments 1 and 2). Metrolinx is offering Station Naming Rights for the following GO Stations: Whitby, Pickering, Exhibition, Clarkson, and Oakville. The objective of the Metrolinx partnership is to: (a) secure a partner for select stations to deliver a premium customer experience while travelling on the GO Transit network; (b) provide a unique engagement and awareness opportunity for partners; (c) generate additional non-fare revenue through this partnership; and, (d) leverage their partner’s communication channels, products, or services to promote Metrolinx services and increase ridership. Under the proposal, selected partner(s) would be recognized as the naming rights partner for a minimum of five (5) years and a maximum of ten (10) years. Metrolinx said existing station names would not be changed completely, but could be altered to include a sponsor’s name – for example, “TD Bank-Whitby Station”. Metrolinx is hoping to improve people’s commutes by injecting private funding into public spaces, and hoping sponsors take an active role in using and improving their sponsored space. In addition to the stations themselves, sponsors could also name parking lots, bathrooms, and areas such as quiet zones or bike zones. Metrolinx is offering the following benefits to potential partners, as set out in the RFI documents: • General rights and benefits of association, such as: designation within a specific product or service category; category exclusivity for a select station(s); exclusive naming rights to a selected station(s); co-branding opportunities; and the right to use GO Transit branding.

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Report LS 14-19 Committee of the Whole Page 3 of 5

• Experiential opportunities, such as: branded areas within the station building, parking garage/lot or platform; retail space (where available); opportunity for offering experiences/promotions on station property; opportunity to feature new products/services; and brand activation management support. • On-site exposure and recognition, such as: permanent branding on signage; station domination campaign for four (4) weeks, twice a year; advertising campaigns on permanent assets (tunnels, elevators, etc.); and access to exiting/future communication channels (apps, website, etc.). • Business opportunities, such as: enhanced visibility and strengthening of reputation by partnering with Metrolinx brand; cross-promotion opportunities; creation of station -specific opportunities to drive business; participation in new customer experience/service enhancements; employee transit program through PRESTO; and to supply Metrolinx with products/services. • Data exchange to develop shared learning opportunities with access to an engaged customer base for research, customer insight, and mapping. • GO Transit tickets offered at a group rate for employee use, offered at promotional pricing for co-sponsored events or attractions, or to purchase PRESTO cards for in-market promotions. Metrolinx and the Government of Ontario launched a 60-day consultation with stakeholders on the naming rights proposal on August 1, 2019. On June 25, 2018, via Resolution 235-18, Council approved Staff Report LS 21- 18 authorizing the Mayor and Clerk to execute a lease agreement with Metrolinx for Town-owned lands located at the northeast corner of Henry Street and Victoria Street West for the purposes of additional parking for the Whitby GO Station. The lease is set to expire on September 30, 2019. Metrolinx has the right to extend the term of the lease for additional periods of two (2) years each, should the Town be agreeable. Further information about Metrolinx’s recent request for a lease extension is contained in Report LS 16-19. 4. Discussion: Town staff understand Metrolinx’s need to find new revenue sources to support the growth of its services and the maintenance of existing infrastructure. This is an issue acutely felt by municipalities such as Whitby, who must continually balance the need for fiscal sustainability while serving resident needs and supporting complete communities. As such, staff do not object to Metrolinx’s attempt to sell naming rights to its GO Stations, but do have a number of concerns and comments, as follows:

1. Any sale of naming rights or signage should not eliminate or significantly diminish the use of the name “Whitby” in the GO Station signage. While the intention of selling naming rights appears to be to create a joint advertising and location name as part of the station name (e.g., “TD Bank-Whitby GO

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Report LS 14-19 Committee of the Whole Page 4 of 5

Station”), the station name should not be altered so as to eliminate the use of the municipal location “Whitby” (e.g., “TD Bank Station”). For branding and community identification purposes, which are important to assist visitors to our community, the “Whitby” name should remain prominent in the station name.

2. The Town should be consulted before the final partner is chosen, to ensure the partner is appropriate for the community and to allow the Town to discuss potential municipal advertising options with the selected partner. As the partner name will be seen and referred to alongside the use of “Whitby”, an appropriate naming partner and advertising should be chosen that does not diminish the “Whitby” brand or the broader community. Priority consideration should be given to local businesses, where possible. As part of that consultation, the Town would also like to explore potential municipal advertising opportunities that will allow the selected partner to leverage multiple advertising locations and mediums that can enhance the partnership opportunity. This will allow the Town to receive advertising revenue from this partnership.

3. Metrolinx does not have the ability to sell naming rights or receive advertising revenue for the Town-owned leased parking lot, as the existing lease does not permit Metrolinx to offer the Town’s property as part of this initiative. Instead, as part of the consultation before the final partner is selected, a discussion can take place about whether and how the Town-owned property could be involved as part of the advertising partnership, with the Town – not Metrolinx – directly obtaining such advertising revenue. 5. Financial Considerations: As noted above in the Discussion section of this Report. 6. Communication and Public Engagement: Not applicable. 7. Input from Departments/Sources: Not applicable. 8. Strategic Priorities: The Town’s comments regarding Metrolinx’s attempt to sell GO Station naming rights supports the Corporate Strategic Plan goal: “2.1 Continually improve how we do things by fostering innovation and focusing on making our processes better.” In addition, protecting the Town’s name and branding, while attempting to find opportunities for new revenue sources, supports Council’s 2018-2022 Goals:

Page 234 of 279 Agenda Item # 4.16.

Report LS 14-19 Committee of the Whole Page 5 of 5

Page 235 of 279 Agenda Item # 4.16.

Attachment 1 to Report LS 14-19

METROLINX STATION NAMING RIGHTS OPPORTUNITY Partner Benefits and Process

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Partner Specification: Station Naming Rights Opportunity Metrolinx is seeking proposals from interested parties in any category for the Station Naming Rights Opportunity at the following stations: Station Line Station address Whitby GO Station Lakeshore East Line 1350 Brock St S, Whitby Pickering GO Station Lakeshore East Line 1322 Bayly St, Pickering Exhibition GO Station Lakeshore West Line Manitoba Drive, Toronto Clarkson GO Station Lakeshore West Line 1110 Southdown Road, Mississauga Oakville GO Station Lakeshore West Line 214 Cross Ave., Oakville

Metrolinx will consider proposals for other stations not listed here at the request of interested parties. For more information about the GO Transit network and stations, please visit www.gotransit.com. We are committed to working together to create a partnership that will meet shared objectives, such as increase revenue, increase market share for our partners and provide a positive customer experience on public transit.

Metrolinx Partnership Objectives • Secure a partner for select stations to deliver a premium customer experience while travelling on the GO Transit network; • Provide unique engagement and awareness opportunity for partners; • To generate additional non-fare revenue through this partnership, and; • Leverage our partner’s communication channels, products, or services to promote Metrolinx services and increase ridership

Naming Rights Assets and Benefits

Below is a list of benefits and rights that are potentially available (subject to specific station) as part of an agreement with the successful partner(s). Assets and benefit discussions are directional in nature and can be customized to meet partner objectives. The specific terms of such partnership would be set out in an agreement between Metrolinx and the partner based on the selected station.

The selected partner(s) will be recognized as the naming rights partner for the selected station(s) for a minimum of 5 years and maximum of 10 years. Evaluation of potential partnerships within the Station Naming Rights Opportunity will be based on the criteria outlined on the pages below.

An information package for each station and the associated naming rights opportunity will be provided to interested proponents during the initial information session.

Page 237 of 279 Agenda Item # 4.16.

Partnership Benefits Framework

• Partnership designation within specific product or service category • Category Exclusivity for select Station(s) • Exclusive Naming rights to selected station General • Collaboration with GO Transit to provide co-branded opportunities Rights and and consider innovative ways to promote partnership or products Benefits of • Right to use GO Transit brand, trademark, logo, imagery, etc., in Association marketing promotions • Access to 60+ stations, 80 trains, 500 buses across 11,000 km2, servicing 76 million boardings per year for in-market promotions, activations and customer-focused engagements (non exclusive)

• Branded areas within station building, parking garage/lot areas or platform (XYZ Waiting area) • Retail Space (permanent or pop-up) available for partner use (dependent on station building) at available station(s) Experiential • Opportunity to activate experiences and promotions on-station Opportunities property (i.e. in station, outside station, or parking lots (restricted times)) • Opportunity to feature new products and services through customized activations • Brand activation management support for any branded activations

• Permanent branding on exterior signage of station building(s), station bridges, parking structures, roadside station entry signage • Station Domination campaign for 4 weeks (2 times per year) includes assets such as on-site advertising and signage throughout On-Site station, including parking garages and lots Exposure and • Advertising campaign on permanent assets such as elevator, Recognition tunnels, pedestrian bridges or other assets for 52 weeks per year of the agreement • Access to existing and future communication channels (email, website, apps, including those to be developed)

Business • Enhance visibility and strengthen reputation by partnering with a Opportunities brand that shares customer experience priorities, consumer safety

Page 238 of 279 Agenda Item # 4.16.

values and highlight community involvement through the partnership • Opportunity to cross-promote with existing partners to develop a new customer experience if applicable • Create station-specific opportunities that drive business objectives for the partner and Metrolinx • Opportunity to participate in new customer experience and service enhancements at specified station as they are developed • Opportunity for employee transit program through PRESTO • Opportunity to supply Metrolinx with products and services • Other business programs as desired and negotiated with Metrolinx

• Opportunities to develop shared learning opportunities with access to an engaged customer base for research • Potential for customer insight and data exchange, for this Data partnership and more broadly to support partner objectives Exchange • Potential to share aggregated and anonymized GO Transit ridership data (excluding PRESTO PII data) for research collaboration and customer mapping research

• Opportunity for group rate tickets for GO Transit and UP Express for employee use (category restrictions may apply for promotional use) GO Transit • Opportunity for promotional pricing programs for co-sponsored Tickets events or attractions (sponsored by both MX and potential partner) • Opportunity to purchase PRESTO cards for in-market promotions

Other • As mutually agreed

Certain restrictions may apply to benefits outlined above.

Page 239 of 279 Agenda Item # 4.16.

Station Naming Rights Partner Selection Process

Outlined below are key dates for participating in this Naming Rights Agreement opportunity. A description of the process, and the terms and conditions that apply to the Station Naming Rights Opportunity process are set out in Appendix “A”.

Interested proponents are encouraged to contact Metrolinx to schedule your one-to-one meeting as soon as possible.

1. August 1, 2019: Process and Station Naming Rights Opportunity document published on Metrolinx MERX and Metrolinx.com 2. August 2, 2019: Begin Scheduling of One-on-One meeting and site visits with interested parties, Conflict of Interest form and Non-Disclosure Agreement will be provided in advance of the meeting and will be due to Metrolinx at time of meeting. Additional information will be shared at the meeting with proponents that have signed and submitted the documents to Metrolinx 3. October 28, 2019: First opportunity to submit term sheet which will be included in the Additional Information for station naming rights to Metrolinx 4. November 28, 2019: At any time on or after this date, Metrolinx may enter into a Letter of Intent to move to exclusive negotiations for a station with a proponent.

The process timetable above is tentative only, and may be changed by Metrolinx at any time, at Metrolinx’s sole discretion.

Station Naming Rights Partner Contact

For more information or questions, please direct all questions and communications of any sort with respect to this opportunity are to be in writing and directed only to the contact identified below: Meredith Sumner E-mail: [email protected]

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Partner Selection Framework The proposals will be reviewed and considered based on the factors included in the additional information that will be shared when the NDA and Conflict of Interest documents are signed and submitted to Metrolinx.

About Metrolinx We are embarking on a massive transformation of the GO Rail network - the backbone of regional rapid transit in the region – to give customers a faster, more convenient way to connect with the things that matter.

Metrolinx provides communities with the connection to the people, places and events that matter to them. Union Station is one of many hubs in the network, centered in downtown Toronto with direct access to the Scotiabank Arena, Rogers Centre, Ripley’s Aquarium, and the CN Tower. Exhibition Station provides direct access to Budweiser Stage, BMO Field, the CNE, Honda Indy and many more cultural events and festivals. For many fans and attraction seekers, their ride on the GO Train becomes an enjoyable extension of their experience. Other transit hubs include the Hwy 407 Bus Terminal, a multi-modal transit hub hosting TTC subway, and YRT/VIVA and GO Transit bus service.

UP Express launched in 2015 as a world class air rail link providing exceptional customer service. This unique line provides service to downtown Toronto from Pearson Airport in 25 minutes, connecting Toronto city centre to the world.

As an enabler for transit service, PRESTO currently offers seamless fare payments across 11 Transit Agencies in the GTHA and Ottawa. The PRESTO card is top of wallet for transit for over 3 million unique customers making 433 million boardings in 2018. In addition, PRESTO sales, which includes electronic purse, period passes, tickets and cards, amounts to over $1.2 billion in 2018.

Our vision: to get our customers to their destinations better, faster, easier. Our mission: to connect our communities. Our values: to serve with passion, think forward and play as a team.

Page 241 of 279 Agenda Item # 4.16.

RFI-2019-CMBD-041 - RFI-2019-CMBD-041: Station Naming Rights Addendum No: 3 (Published) Opport... Notice Solicitation Number RFI-2019-CMBD-041 Attachment 2 to Title RFI-2019-CMBD-041: Station Naming Rights Opportunity Basic Information Report LS 14-19 Reference Number 0000156912 Solicitation Type RFI - Request for Information (Formal) Solicitation Number RFI-2019-CMBD-041 Title RFI-2019-CMBD-041: Station Naming Rights Opportunity Source ID PU.AG.Ont..26.C678701

Details Location Southern Ontario, Canada Purchase Type One Time Only

Dates Publication 01-Aug-2019 02:41:10 PM EDT Bid Intent Optional Bid Intent Deadline 28-Oct-2021 12:00:00 AM EDT Questions are submitted online No Closing Date 28-Oct-2021 03:00:00 PM EDT

Description Expression of Interest Expression of Interest No. RFI-2019-CMBD-041 Metrolinx is accepting Expression of Interest for Station Naming Rights Opportunity. Metrolinx is an agency of the Government of Ontario, overseeing GO Transit, PRESTO, and UP Express. We are embarking on a massive transformation of the GO Rail network - the backbone of regional rapid transit in the region – to give customers a faster, more convenient way to connect with the things that matter. Metrolinx is seeking proposals from interested parties in any category for the Station Naming Rights Opportunity at the following stations: Stations: Whitby GO Station Pickering GO Station Exhibition GO Station Clarkson GO Station Oakville GO Station Metrolinx will consider proposals for other stations not listed here at the request of interested parties. For more information about the GO Transit network and stations, please visit www.gotransit.com. We are committed to working together to create a partnership that will meet shared objectives, such as increase revenue, increase market share for our partners and provide a positive customer experience on public transit. Proposal Documents are available online at www.merx.com/metrolinx, Solicitation No RFI-2019-CMBD-041 Proponents are urged to select automatic notification of addenda issuance when registering on MERX. It is the Proponent’s responsibility to ensure receipt of copies of all addenda issued. Information concerning the number of addenda issued and the date of issue of the most recent addendum can be found at www.merx.com. Proposals must be emailed to the SNRO Contact at [email protected] no early then October 28, 2019. Metrolinx will continue to accept proposals until letter of intent or an agreement is signed for each station. There is no closing date for submissions. Metrolinx reserves the right to reject any or all Submissions at its sole discretion.

Bid Submission Process Bid Submission Type Electronic Bid Submission Pricing In attached document Pricing In attached document Bid Documents List

05-Sep-2019 03:52:47 PM EDT Page 1 of 4

Page 242 of 279 Agenda Item # 4.16.

RFI-2019-CMBD-041 - RFI-2019-CMBD-041: Station Naming Rights Addendum No: 3 (Published) Opport... Item Name Description Mandatory

Bid Documents Documents defining the proposal Yes

05-Sep-2019 03:52:47 PM EDT Page 2 of 4

Page 243 of 279 Agenda Item # 4.16.

RFI-2019-CMBD-041 - RFI-2019-CMBD-041: Station Naming Rights Addendum No: 3 (Published) Opport... Categories Selected Categories

MLX Category (1)

U Other Other

U Undefined Undefined

05-Sep-2019 03:52:47 PM EDT Page 3 of 4

Page 244 of 279 Agenda Item # 4.16.

RFI-2019-CMBD-041 - RFI-2019-CMBD-041: Station Naming Rights Addendum No: 3 (Published) Opport... Document Request List Document Request List

Organization Name Main Contact Download Date City Province/State

CDW Canada Corp. Art Pascu 29-Aug-2019 04:08:42 PM Etobicoke Ontario EDT

PricewaterhouseCoopers Lianne White 07-Aug-2019 08:29:42 AM Toronto Ontario LLP EDT

Steer Davies Gleave Maureen Ellis 06-Aug-2019 03:03:10 PM Toronto Ontario North America Inc. EDT

Accenture Denise Corbishley 06-Aug-2019 09:43:43 AM Ottawa Ontario EDT

Arup Faiza Ebadi 02-Aug-2019 03:27:40 PM Toronto Ontario EDT

Deloitte Tamika Brown 02-Aug-2019 10:50:52 AM Toronto Ontario EDT

Entuitive Judy Ng 02-Aug-2019 10:45:32 AM Toronto Ontario EDT

Pattison Outdoor Christina Ogrodnick 02-Aug-2019 09:12:45 AM Mississauga Ontario Advertising EDT

Ministry of Transportation Olga Garces 01-Aug-2019 03:01:06 PM Toronto Ontario EDT

05-Sep-2019 03:52:47 PM EDT Page 4 of 4

Page 245 of 279 Agenda Item # 4.17.

Town of Whitby Staff Report whitby.civicweb.net

Report Title: GO Station Parking Lot Lease Extension – N/E Corner of Henry Street and Victoria Street West

Report to: Committee of the Whole Submitted by: Warren Mar, Commissioner of Legal and Date of meeting: September 16, 2019 By-law Services/Town Solicitor

Report Number: LS 16-19 Acknowledged by M. Gaskell, Chief Administrative Officer Department(s) Responsible: For additional information, contact: Legal and By-law Services Warren Mar, Commissioner of Legal and By-law Services/Town Solicitor, x4342

1. Recommendation: 1. That Council approve the request by Metrolinx for a two year extension to the existing parking lot lease on Town property at the northeast corner of Henry Street and Victoria Street West. 2. That the Town Solicitor and the Treasurer be delegated the authority to execute any such agreement or document on behalf of the Town which may be necessary to give effect to the extension of the lease term. 2. Highlights: • The existing Metrolinx lease for the use of Town property at the northeast corner of Henry Street and Victoria Street West is set to expire on September 30, 2019. If it expires on that date, Metrolinx would have a final two year window to continuing operating the parking lot, but would have to cease operations by September 30, 2021 and restore the property to its original condition.

• The reason that the lease contains an automatic two year “winding down” period (regardless of any extension) is to allow Metrolinx the opportunity to find other parking sites if necessary, communicate the change to GO

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Report LS 16-19 Committee of the Whole Page 2 of 4

Transit users, and to complete discussions with the Town about restoring the property to its original condition

• Metrolinx has requested an extension to the lease term for an additional two year period, as contemplated by the lease. This effectively means that the lease would run for a total period of four years (assuming no other extensions), until September 30, 2023.

• Staff are agreeable to the lease extension, understanding that the transit- oriented development study for this area is ongoing. A four year time period allows the Town to use this time to review the results of the transit- oriented development study, and implement any recommendations or conclusions – with the possibility of working with Metrolinx in the future regarding development of the entire site. 3. Background: As approved by Council, Metrolinx leases the Town-owned property located at the northeast corner of Henry Street and Victoria Street West (1453 and 1541 Henry Street) (the “Property”). Through this lease, Metrolinx operates a 512 space parking lot to serve the Whitby GO Station (the “Lease”). The use of the Property as a parking lot has been acknowledged by Metrolinx as a temporary use. Initially the spaces were needed as the Whitby GO Station parking structure was under construction. The parking lot now assists with handling the parking needs at the GO Station, which is currently the second- busiest station in the Metrolinx system (after Oakville). As part of the Town’s Port Whitby Community Secondary Plan, the proposed uses for the Property include high density residential and mixed use development. Metrolinx is aware of the Town’s plans, and supports the Town’s ongoing transit- oriented development study and market analysis for the entire site surrounding the Whitby GO Station. That study and analysis is scheduled to be completed in the fall of 2019, with a report to Council in November. The Lease “expires” on September 30, 2019, but contains provisions for the extension of the Lease period for additional periods of two years each, where Metrolinx requests such an extension prior to the expiration of the term and the Town is agreeable to the extension. Should the Town not agree to a two year extension of the Lease, then the Lease will automatically terminate two years after the Town delivers notice that it does not want a further extension of the Lease term. The reason for this two year “winding down” period is to allow Metrolinx the opportunity to find other parking sites if necessary, communicate the change to GO Transit users, and to complete discussions with the Town about restoring the Property to its original condition. Therefore, by agreeing to a two year extension of the Lease, the Town will be providing Metrolinx with a total period of four years to use the Property as a

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Report LS 16-19 Committee of the Whole Page 3 of 4

parking lot – unless Metrolinx and the Town come to a separate arrangement to end the Lease before this time. 4. Discussion: Metrolinx has written to the Town requesting a two year extension to the Lease. As contained in the Lease, rent for this extension period will be increased on an annual basis by the All Item Consumer Price Index for Toronto (not seasonally adjusted), as per Statistics Canada. As of the most recent date for this percentage (July 2019), the CPI increase in rent would be 2.3%. The current annual rent paid to the Town is $60,477.88. The rental rates were recently reviewed in early 2018. More details can be found in Report LS 21-18. If the Town were agreeable to this extension, but no further extensions after this timeframe, then the Lease would effectively end on September 30, 2023. If the Town were not agreeable to this extension, then only two years would remain. Metrolinx would have to begin preparations to end the Lease and remove the parking lot from the Property on September 30, 2021. Staff are aware of the pending report regarding transit-oriented development around the Whitby GO Station. Staff are also aware that in readying the GO Station site for development, co-operation with Metrolinx will be a key factor in the success of such a large-scale project. As such, a two year extension to the Lease term is reasonable in the circumstances, and provides certainty to Metrolinx in their ongoing operations at the Whitby GO Station. In turn, the Town will be able to use this time to review the results of the transit-oriented development study, and implement any recommendations or conclusions therein. Should the Property and surrounding site then be ready for development, in two years’ time the Town can notify Metrolinx that it will not agree to any further Lease extensions, and the Town and Metrolinx can then begin discussions on restoring the Property and actively preparing for development (e.g., marketing the Property). 5. Financial Considerations: As noted above in the Discussion section of this Report. 6. Communication and Public Engagement: Not applicable. 7. Input from Departments/Sources: None. 8. Strategic Priorities: Extending the parking lot lease with Metrolinx, while keeping an eye on the future development of this site, supports Whitby Council Goals (2018-2022):

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Report LS 16-19 Committee of the Whole Page 4 of 4

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Town of Whitby Staff Report whitby.civicweb.net

Report Title: Accessible Signage and Wayfinding Study

Report to: Committee of the Whole Submitted by: John Romano, Acting Commissioner of Date of meeting: September 16, 2019 Community Services

Report Number: CMS 24-19 Acknowledged by M. Gaskell, Chief Administrative Officer Department(s) Responsible: For additional information, contact: Community Services Department Office of the Chief Administrative Officer Michele Cotton, Accessibility Coordinator, x7331 Suzanne Christie, Lead, Brand, x7412

1. Recommendation: 1. That Council approve the budget of $139,900 for the Accessible Signage and Wayfinding Study be advanced to Q4, 2019; 2. That staff be directed to initiate an RFP for an Accessible Signage and Wayfinding Study; and, 3. That Staff be directed to report to Council with a recommended Accessible Signage and Wayfinding Standard upon completion of the study. 2. Highlights: • Advancing this project would respond to the long-standing recommendations from the 2006 Accessibility Audit, the Accessibility Advisory Committee and provide improved accessible customer service. • Through the Accessible Signage and Wayfinding Standard Study, the Town will receive recommendations for a multi-level wayfinding and signage system modeled on other successful urban systems.

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• The study will provide consistent detailed designs for the various classifications of wayfinding and signage, and provide criteria for locations in typical facilities or landscape scenarios. 3. Background: Wayfinding is a consistent guide to assist people to their destinations. A successful wayfinding program is intuitive and self-navigable. Successful wayfinding is primarily achieved through effective use of signage, informational displays/kiosks and building/site layout. Wayfinding also includes audible communication, tactile elements, and provisions for persons with varying abilities. The need for an Accessible Signage and Wayfinding system was identified through the Accessibility Audits conducted in 2006, by Kevin M. Duguay Community Planning and Consulting Inc. The Town currently lacks a cohesive accessible signage and wayfinding program and the Audit report included completion of a study and development of a Town standard for an accessible signage and wayfinding system. 4. Discussion: A comprehensive signage vocabulary is an important strategic opportunity that will assist in creating a distinctive character for the Town and support the corporate brand guidelines. A successful wayfinding system equips residents and visitors with easy to read information allowing a logical, intuitive experience by which to explore a local area, its services and attractions. Clear and concise navigation information creates a welcoming experience and encourages tourism, improves access to local destinations and aligns with the corporate brand. The types of signs envisioned throughout the Town will consist of both interior and exterior signs of all Town facilities, gateway features, directional signs, street identifications, municipal addresses, municipal parking, Town destinations, and points of interest. The completion of the study and creation of a standard will:

• respond to the recommendation of 2006 Accessibility Audit and recommendations from the Accessibility Advisory Committee;

• ensure compliance with existing Accessibility Legislation;

• increase community accessibility to our diverse community including seniors;

• increase customer service by ensuring ease of locating Town services and facilities; and,

• assist in creating brand consistency, making Whitby more attractive to potential economic development and tourism opportunities.

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To address these objectives in concert with Whitby’s rapid growth, the Town of Whitby is seeking to develop an accessible signage and wayfinding program, which will meet the recommendations of the Accessible Signage Study. Currently the Accessible Wayfinding and Signage Study has been budgeted for 2020, however staff are recommending advancing the study to start in Q4 of 2019. Advancing the project will better align resources and reduce pressure on staff. Providing pre-budget approval will allow staff to begin the RFP process and award a contract in 2019 with a goal of presenting the recommendations of the study for Council approval in Q1, 2020. The new standards would be incorporated into 2020 projects and initiatives. 5. Financial Considerations: The 2019 Capital Budget identified $139,900 for Town Accessible Signage Standards project for 2020. Staff is requesting approval to advance the budget of $139,900 to Q4 of 2019. Going forward, any signage improvements would be financed through existing operating budgets or within approved capital budgets. 6. Communication and Public Engagement: • A Communications plan will be developed and include tactics such as a public notice, web page updates, Town Page notice and social media.

• A community open house would be held to display the design concepts originating from the consultant. 7. Input from Departments/Sources: The Accessible Signage and Wayfinding Study will be coordinated by the Accessibility Coordinator in partnership with and Corporate Communications Lead, Brand. They will work in collaboration with a number of other departmental staff to ensure that the recommendations presented address the needs of all Departments within the Town. 8. Strategic Priorities: a. Council Goals

• To continue the Whitby tradition of responsible financial management and respect for taxpayers; and to understand the importance of affordability and sustainability to a healthy, balanced community. o Building on the funds committed to develop a new brand, this study will ensure that the roll out of new signage and wayfinding is done consistently and efficiently, ensuring responsible use of tax dollars.

• To ensure Whitby is clearly seen by all stakeholders to be business and investment friendly and supportive; and to continuously improve the

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customer experience and the effectiveness and efficiency of communications, service delivery and approvals. o Providing a framework of accessible, unified and coherent signage and wayfinding system will create a walkable, appealing, convenient, safe and stimulating experience for residents and visitors to the Town of Whitby and its local businesses.

• To make our streets and neighbourhoods safer through innovative and best-practice design standards and traffic calming measures that reduce traffic speeds; to increase citizen involvement in building Complete Streets; to effectively manage parking on residential streets and in our downtowns; and to reduce the traffic impact of new developments on existing neighbourhoods. o Focuses on harmonizing the design and placement of street amenities to reduce clutter, beautify city streets and give Whitby an identifiable streetscape, and to work concurrently with improvements to other elements in the public right-of-way, such as tree planting, decorative paving, pedestrian clearways, parking, and street signs. o A coherent wayfinding system extends across transportation modes and includes state of the art technologies. o Creates high quality pedestrian environments and fosters a culture of pedestrian focused spaces.

• To remain the community of choice for families and become the community of choice for seniors and job creators; and to focus new growth around the principles of strong, walkable and complete neighbourhoods that offer mobility choices. o Wayfinding includes the built and natural environment and makes streets, neighbourhoods, and the Town more “legible” and user friendly

• To become the destination of choice for visitors; to realize the economic, cultural and social potential of our downtowns, waterfront, green spaces and major attractions; to support and facilitate new community events and increase recreational opportunities along our waterfront. o Way-finding is becoming a bigger priority for communities that wish to encourage travelers to stop, stay longer and spend discretionary dollars outside of their own community.

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o Development of a unified, multi-modal wayfinding system is shared by businesses, cultural and sports institutions, residents, commuters and tourists. o “It should provide a seamless experience for the visitor and say something about the community”. b. Corporate Strategic Plan and Strategic Priorities This study aligns with the Strategic Plan and Priorities by developing standards that put the Town in a position to responsibly move the Branding and Signage projects forward. Wayfinding is an essential part of the business facility and branding and can be so much more than directional signage. People use wayfinding everyday of their lives, but are unaware of how important it really is, until relying on the infrastructure to be a guide. A positive experience will encourage visitors to come, visit and return over and over again.

1. People We will foster an inclusive environment where employees can experience job satisfaction and rewarding careers. OBJECTIVES: 1.1. Empower staff

2. Organization We will be a high performing, innovative, effective and efficient organization. OBJECTIVES: 2.1. Continually improve how we do things by fostering innovation and focusing on making our processes better 2.2. Leverage technology and information to modernize our business practices 2.3. Enhance our efforts at informing and engaging staff and community

3. Customer (note: customer is defined as both external and internal) We will provide a consistent, optimized and positive customer service experience. OBJECTIVES: 3.1. Design service delivery around customer needs 3.2. Modernize and improve customer interaction tools

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3.3. Measure results in pursuit of ongoing improvements to the customer service experience. 9. Attachments: N/A

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Town of Whitby Staff Report whitby.civicweb.net

Report Title: Comments for the Proposed Recommendations for the Accessible Information and Communications Standards

Report to: Committee of the Whole Submitted by: John Romano, Acting Commissioner of Date of meeting: September 16, 2019 Community Services

Report Number: CMS 23-19 Acknowledged by M. Gaskell, Chief Administrative Officer Department(s) Responsible: For additional information, contact: Community Services Department Michele Cotton, Accessibility Coordinator, X7331

1. Recommendation: 1. That Council receive report CMS 23-19 as information; 2. That Council endorse the comments in report CMS 23-19 as the Town of Whitby’s response to the call for comments from the Province of Ontario; and, 3. That Council direct the Accessibility Staff to submit comments to the Province on behalf of the Town and to meet the public comment deadline of September 27, 2019. 2. Highlights: • The intention of the Accessible Information and Communications Standards is to enable those with disabilities to participate fully and equally in the creation and use of information and communications.

• There are a number of areas in the Proposed Recommendations that will have a significant budgetary and resource impact on the Town. 3. Background:

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The Accessibility for Ontarians with Disabilities Act, 2005 (Act) requires each of Ontario's accessibility standards be reviewed within five years of becoming law. The review is to determine if the Act is working as intended and to allow any required changes. These reviews are carried out by Standards Development Committees, which are to be made up of representatives from industry and organizations affected by the accessibility standards, related government ministries and people with disabilities or their representatives. As required by the Act, the committee must: • re-examine the long-term objectives of the standards • revise any measures, policies, practices and requirements prior to January 1, 2025, and include timeframes for implementation • develop initial proposed recommendations containing changes or additions that the committee considers advisable, and submit them for public comment • based on public feedback, submit recommended changes to the Ministry The last original Integrated Accessibility Standards, Ontario Regulation 191/11 compliance date is January 1, 2021. (2) Designated public sector organizations and large organizations shall make their internet websites and web content conform with the World Wide Web Consortium Web Content Accessibility Guidelines (WCAG) 2.0, initially at Level A and increasing to Level AA, and shall do so in accordance with the schedule set out in this section O. Reg. 191/11, s. 14 (2). (4) Designated public sector organizations and large organizations for their internet websites shall meet the requirements of this section in accordance with the following schedule: 2. By January 1, 2021, all internet websites and web content must conform with WCAG 2.0 Level AA, other than, i. success criteria 1.2.4 Captions (Live), and ii. success criteria 1.2.5 Audio Descriptions (Pre-recorded) O. Reg. 191/11, s. 14 (4). This report presents the initial recommendations proposed for the Integrated Accessibility Standards sections related to Information and Communications Standards, as presented by the Province’s Standard Review Committee. 4. Discussion: The recommended enhancements to the legislated requirements will provide a greater level of service, transparency and accountability for Town residents, visitors, and employees. The recommendations will also increase the effectiveness and efficiency of communications and service delivery. However, the actions and timelines contained in the high impact recommendations will be difficult for the Town to meet. Staff will include comments requesting longer

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timelines, changes to the high impact recommendations and funding opportunities to assist the Town in meeting these requirements. Through the review of the Information and Communications Standard, the Province’s Standard Review Committee has put forward 30 recommendations, and proposed an alternate format for this highly technical standard. Report CMS 23-19 will highlight the level of anticipated impact on the Town, from high to low impact. A summary of the newly proposed format to the standard, discussed as “Phase 2” in the recommendations will be discussed at the conclusion of the proposed recommendations. Corporate Communications and the Accessibility Advisory Committee have reviewed the proposed recommendations put forward by the Provincial Standard Review Committee and agree that the proposed changes will increase access.

High Impact Recommendations: Recommendation # 13 - Mobile applications and new technologies The intent of this recommendation is for both mobile applications which run from a website, and those which run as a stand-alone device but rely on the internet for function would be subject to accessibility requirements of Section 14 of the Act.

Staff’s comment – the Town's technology infrastructure, content and staff resources are not able to accommodate this requirement by 2021. It is anticipated that some technologies do not have an accessible base format. An extension of the deadline will be recommended and that funding sources be provided. Recommendation # 14 - Procurement The intent with this recommendation is to ensure that digital procurement by the broader public sector organizations includes accessibility criteria, and that authoring and development tools are accessible through the use of qualified third party certification services.

Staff’s comment – this change would have significant impact on business processes and related supporting technologies. There are also concerns with the use of third party evaluation services that can add substantial unnecessary costs and delay to projects. There are questions around the validity of third party evaluation, specifically how third parties are deemed qualified and how the level of compliance is monitored. An extension of the deadline will be recommended and that funding sources be provided. Recommendation # 16 - Significant refresh

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The intent of this recommendation is to clarify language that applies to website a redesign or significant refresh. Staff’s comment - these changes would force the Town to meet Section 14 of the regulation and to make significant changes to website and website content. This would be a significant resource and funding obligation. The compliance deadline is January 1, 2021. An extension of the deadline will be recommended and that funding sources be provided. Recommendation # 17 - Practicability The intent of this recommendation is to align the language with that of the Ontario Human Rights Commission would bring significant clarity, as both the commission and the Human Rights Tribunal of Ontario have previously ruled on undue hardship. Staff’s comment – this change would force the corporation to put significant funding and resources towards this project. Changing the definition, will require that most documents be presented in an accessible format and will require third parties to be in compliance. An extension of the deadline will be recommended and that funding sources be provided. Recommendation # 18 - Harmonization and application across requirements The intent with this recommendation is to clarify the requirements of accessible websites by clearly stating the requirements. Staff’s comment - this change would force the corporation to put significant funding and resources towards this project. An extension of the deadline will be recommended and that funding sources be provided. Recommendation # 19 - Extranet exemption The intent of this recommendation is to completely remove the exemption for extranet websites that require a login, ensuring that these sites be required to comply with Section 14. Staff’s comment - some vendor solutions may not meet compliance regulations (i.e. iCompass, ActiveNet, Paytickets.ca) Time will be required for vendors to develop compliant solutions. An extension to the deadline of January 1, 2023, will be recommended and that funding sources be provided. Recommendation # 20 - Intranet exemption

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The intention of this recommendation is to ensure that all intranet websites comply with Section 14. The recommended timeline is January 1, 2023, since a new requirement. Staff’s comment – this would require a large commitment of staff time and financial resources. An extension of the deadline will be recommended and that funding sources be provided. Recommendation # 21 - Pre-2012 exemption The intent of this recommendation is to ensure that content intended for active use cannot be exempt, and that inactive, archived content which is for informational purposes only can remain exempt. Staff’s comment – the Town may have some historical content that is used periodically and would be extremely difficult to make fully accessible (i.e. Old Budget Books). This change would force the corporation to put significant funding and resources towards this project. Staff will recommend clarity be provided in exempt document guidelines, an extension of the timeframe and that funding sources be provided. Low Impact Recommendations: Recommendation # 1 - Feedback requirements The intent of this recommendation is to eliminate the confusion caused by having requirements for a feedback process dealt with in two different parts of the regulation. This change should not modify the obligations of organizations but simply make them clearer and easier to find and understand. Staff’s comment – this is a minor impact to the Town, requiring housekeeping of Town policies and communication to staff of updates. Recommendation # 5 - Determination of suitability The intent of this recommendation is that both the organization and the person, requesting an alternate format, should work together to agree on suitability. To allow organizations time to adjust their processes. This recommendation would be effective six months after the amended regulation is in force. Staff’s comment - this is a minor impact to the Town, requiring housekeeping of Town policies and communication to staff of updates. Recommendation # 6 - Timely Manner The intent of this recommendation is for organizations and people with disabilities to agree on what is meant by a “timely manner”. To allow organizations time to adjust their processes, this recommendation would be effective six months after the amended regulation is in force.

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Staff’s comment - this is a minor impact to the Town, requiring housekeeping of Town policies and communication to staff of updates. No response to the Ministry is required. Recommendation # 7 - Agreement between people with disabilities and organizations The intent of this recommendation is for the Accessibility Advisory Council is to investigate the creation of a mechanism to support the satisfaction of both people with disabilities and organizations, in relation to requirements under the Act.

Staff’s comment - there is no anticipated impact on the Town. This recommendation provides a mechanism for persons with disabilities to seek resolution, where currently no mechanism exists. Recommendation # 8 - Harmonization of Section 12 This recommendation will place all of the requirements for alternate formats and communication supports in one section of the Act thereby eliminating confusion.

Staff’s comment - this is a minor impact to the Town, requiring housekeeping of Town policies and communication to staff of updates. Recommendation # 9 - On-demand conversion ready formats The intent of this recommendation is to strengthen the idea that accessible formats not be offered as an accommodation. Accessible formats and communications supports are necessary from the start, as part of an accessibility foundation.

Staff’s comment - Council adopted an Accessible Document policy in 2014, which requires all information and communications produced by the Town to be in conversion-ready format. Recommendation # 10 - On-demand ASL and LSQ translations The intent is that the Government of Ontario develop a fair and reasonable answer to the question of which types of materials should be available in ASL and LSQ on demand.

Staff’s comment - the Town currently provides on-demand language translation services. To ensure inclusion for all residents, the addition of on-demand ASL and LSQ translation services would be required. An extension of the deadline and that funding sources be provided, may be required pending final recommendation. Recommendation # 11 - Emergency requirements The intent of this recommendation is to ensure that no requirements are overlooked when it comes to protecting the rights of people with disabilities and

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their families. These requirements should be consolidated and given a clear and prominent position in the general requirements of the regulation.

Staff’s comment – staff recommend a general review of these requirements be conducted and the findings be clearly communicated to all organizations affected by the Act. Recommendation # 12 - Unacceptable emergency outcomes and preparedness The intent of this recommendation is to address the lack of emergency planning focused on the needs of people with disabilities.

Staff’s comment - the inclusion of persons with disabilities in emergency planning exercises is a low impact initiative that the Town can undertake to ensure inclusion of all residents and staff. Recommendation # 22 - Live captioning and audio description The intent of this recommendation is to have obligated organizations plan infrastructure, adopt training, and generally prepare for the implementation of live captioning and audio descriptions by 2025.

Staff’s comment – as the Provincial Standard Review Committee has noted that due to fast changing technology, it is unclear of the impact on the Town by 2025. Extension of the deadline and funding sources may be required to comply with the regulation. Recommendation # 23 - Web hosting location The intent of this recommendation is to clarify that the regulations apply to obligated organizations regardless of where their websites are hosted.

Staff’s comment – no response to the Ministry is required. Phase 2 - A new model for Accessibility Regulation: The introduction of an “Accessibility Ecosystem”, with the primary aim to encourage organizations to see the Act, less as an obligation, and more as a beneficial program for all Ontarians. The objectives are to maintain stride with technology, respond to new barriers, respond to new opportunities and respond to the unexpected. The proposed ecosystem has three interdependent parts: the Laws, the Trusted Authorities and the Community Platform.

Staff’s comment - There is obvious conflict in models and information required to understand how the transition would occur while still providing fully accessible information and communications. Staff recommendation is for the Province to provide clear expectations in order to determine the impact of the new “Accessibility Ecosystem” and provide informed feedback.

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5. Financial Considerations: With the limited time permitted to prepare comments on the proposed changes, staff cannot provide an estimated financial impact. However, if the changes are adopted as proposed, these will have significant budgetary and resource impacts to the Town of Whitby. 6. Communication and Public Engagement: This report is in response to the Province of Ontario’s call for public input into the Review of the Information and Communications Standards – 2019 Initial Recommendations Report. 7. Input from Departments/Sources: The proposed recommendations have been circulated through the Accessibility Working Group for comments and from each department. Comments provided have been incorporated into this report. The proposed recommendations report has also been circulated to the Senior Leadership Team to ensure potential impacts to the Town are brought forward to ensure awareness and planning for compliance. This report has been discussed at the Accessibility Advisory Committee, to seek advice and guidance on the recommendations. The Accessibility Advisory Committee comments have been incorporated into this report through the discussion section. 8. Strategic Priorities: Information and Communications have an impact on every aspect of Town business and must be in a format that is accessible to everyone. Information and Communications is the backbone for all Council goals, Strategic plans, Accessibility and Sustainability. When the Town provides information and communications to their customers in an accessible format, it provides transparency, accountability and inclusion. Clear communications allows residents, staff and visitors to make informed decisions and builds effective, efficient communications and service delivery. 9. Attachments: Attachment 1 – 2019 Initial Recommendations Report

Page 263 of 279 New and Unfinished Business - General Government Item Description Resolution Meeting Date Due Date Revised Date Explanation/Comments Number MD - 1346 Public Works Department 1. That Public Works Department Report, PW 03 Feb 2014 14 Nov 2016 21 Oct 2019 (Comments updated Report, PW 6-14 Re: Garden 6-14 be referred back to staff to investigate Jan 30, 2018) EA filed Street (Dryden Boulevard and the issues and concerns described by the in the fall 2017. Taunton Road) Environmental residents on Cork Drive; and Awaiting decision from Assessment Study - Final 2. To investigate and have a full understanding the Ministry of Report of the impact of fencing in relation to noise Environment concerns.

MD - 2317 Public Works Department 2. That Staff report back to Council on Road Right- 30 Jun 2015 27 Mar 2017 03 Feb 2020 (Comments updated Report, PW 34-15 Re: Road of-Way Standards to be implemented within January 30, 2018) Fall Right-of-Way Standards Downtown Whitby and Downtown Brooklin. of 2018 following the adoption of Werden's Plan other Downtown initiatives MD - 2764 Public Works Department 3. That Staff report back to Council in June of 2016 12 Sep 2016 23 Jan 2017 21 Oct 2019 Report, PW 10-16 Re: Road with recommendations for road rationalization with Rationalization - Region of the Region of Durham. Durham MD - 3015 Retention of Ownership of That the motion regarding the retention of 30 May 2016 18 Jun 2018 Dundas Street, from ownership of Dundas Street, from Cochrane Street Cochrane Street to Garden to Garden Street, be tabled. Street MD - 3161 Public Works Department 2. That Council consider and provide direction on 12 Sep 2016 04 Dec 2017 21 Oct 2019 (Comments updated Report, PW 31-16 Re: an interim (October 1, 2016 to November 31, 2017) November 2016) To be Discount Rate for Leased payment in lieu policy (PIL) for parking; included as part of Parking in Municipal Lots and 3. That staff bring forward to Council the Terms of Parking Master Plan. Interim Payment in Lieu Reference for the Parking Master Plan in January Initial public (PIL) 2017; and, consultation on the 4, That a payment in lieu (PIL) policy be developed Parking Master Plan - as part of the 2017 Parking Master Plan for surface December 2017. Page 264 of279 and structured parking and be brought forward to Status update May 13, Council for review and consideration. 2019. Agenda Item#5.1.

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New and Unfinished Business - General Government Item Description Resolution Meeting Date Due Date Revised Date Explanation/Comments Number MD - 3316 Community and Marketing 4. That staff report back to Council following the 14 Nov 2016 13 Nov 2017 21 Oct 2019 Waiting for results and Services Department Report, receipt of the Department of Fisheries and Oceans information gathered CMS 61-16 Re: Update on Canada long term sediment management plan for from the Department of Discussions with the Whitby Harbour. Fisheries and Oceans Department of Fisheries and Canada Oceans Canada MD - 3859 Public Works Department 1. That Public Works Department Report, PW 19 Jun 2017 02 Oct 2017 11 May 2020 Report, PW 3-17 Re: 3-17 be referred back to staff to consult with Proposed Garden Street residents and investigate alternative options Parking Restrictions, Update to accommodate parking on Garden Street Traffic By-law 1862-85 between Dundas Street East and Burns Street and that staff report back on this matter in the Fall 2017.

MD - 3920 Corporate Services 5.That staff report to Council in 2018 identifying the 21 Aug 2017 05 Mar 2018 08 Apr 2019 Department and Office of the progress for each eService project and its related Chief Administrative Officer benefits. Joint Report, CS 79-17 Re: Long-Term Digital Strategy MD - 3985 Community and Marketing That Report CMS 43-17 be referred to the Chief 10 Oct 2017 04 Dec 2017 13 May 2019 There is going to be a Services Department Report, Administrative Officer and the Commissioner of memorandum issued CMS 43-17 Re: Iroquois Park Community and Marketing Services to facilitate a explaining this item Sports Centre Capital meeting with the Whitby Dunlops, Whitby Fury, and asking to have it Enhancements (Des Whitby Warriors, Brooklin Redmen and the Whitby removed from this list. Newman Arena Complex) Junior Wolves to discuss the venue suitability of Iroquois Park Sports Centre as it pertains to these sporting teams and their events and to discuss future potential opportunities prior to the inclusion of any capital enhancements, as outlined in Report CMS 43-17, in the 2018 Capital Budget. Page 265 of279 MD - 4037 Resident and Community That the Town Clerk be directed to report back with 30 Oct 2017 12 Feb 2018 10 Feb 2020 Staff will be reviewing Agenda Item#5.1. Associations opportunities to implement a program to register opportunities as part of resident and community associations with the MD 4344 - Community Town for public and corporate reference, and for Signage such associations to receive notification of municipal issues and public meetings which may be relevant to them. Updated: August 22, 2019 page 2 of 14

New and Unfinished Business - General Government Item Description Resolution Meeting Date Due Date Revised Date Explanation/Comments Number MD - 4064 Wintertime No Parking - 1. That staff be directed to bring forward a staff 20 Nov 2017 21 Jan 2019 18 Nov 2019 Helston Crescent report, applicable by-laws, and 2019 budget considerations for no parking signage, subject to the completion of a public survey in 2018, to implement a no parking restriction on Helston Crescent or a portion thereof. 2. That Staff be directed to report back in 2019 on the outcome of this no parking trial.

MD - 4084 Traffic Issues on Kilbride That staff be directed to review options to reduce 20 Nov 2017 10 Sep 2018 18 Nov 2019 Drive traffic speeds on Kilbride Drive that should include, but not be limited to a speed limit reduction. MD - 4131 Memorandum from C. Harris, That Staff be directed to research and review 11 Dec 2017 28 May 2018 21 Oct 2019 Town Clerk Re: Whitby options and methods to mitigate the abundance of Sustainability Advisory cigarette butts in Downtown Whitby and Brooklin, Committee Recommendation such as cigarette receptacles, anti-littering to Council regarding Cigarette signage, and acquiring sidewalk cleaning Butt Recycling/Clean-Up in machinery. Downtown Whitby MD - 4149 Public Works Department 1. That the 2017 Brooklin Transportation 11 Dec 2017 28 May 2018 04 May 2020 Staff will report back on Report, PW 35-17 Re: Final Master Plan, as outlined in Report PW 35- Cedarbrook Trail park Brooklin Transportation 17 and Attachment 1, be approved subject when area development Master Plan (TMP) to the following amendments: occurs. It is included in c. That staff report back on options for the landowners major east-west collector road crossing roads EA. EA Cedarbrook Trail as an active transportation expected to be and transit route only; and, awarded late January d. That staff investigate options for and it will take 18 incorporating a dead-end at Cedarbrook months. Page 266 of279 Trail, north and south of the new collector road, between Brawley and Columbus Agenda Item#5.1. Roads and report back to Council with the findings.

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New and Unfinished Business - General Government Item Description Resolution Meeting Date Due Date Revised Date Explanation/Comments Number MD - 4151 Community Safety Zones 1. That staff investigate and report back on the 11 Dec 2017 10 Sep 2018 02 Mar 2020 use of community safety zones on a Town- wide basis, including those located adjacent to parks; and, 2. That the analysis include various examples including but not be limited to Eric Clarke Dr. and Lady May Dr. taking into consideration the following parks: Divine, Eric Clarke and Lady May.

MD - 4185 Public Works Department 4. That Public Works staff report back on the 29 Jan 2018 13 Oct 2019 07 Oct 2019 Report, PW 4-18 Re: Follow- effectiveness of the Scott Street trial with in-street up on All-Way Stop Control flexible bollards to reduce vehicle speeds, as well Compliance at the as, other potential opportunities to reduce unlawful Intersection of Darren Avenue travel speeds on municipal roads. and Chatterson Street and 40 km/h Speed Limit Trial on Montgomery Avenue and Robert Attersley Drive East MD - 4208 Office of the Chief 1. That Office of the Chief Administrative Officer 12 Feb 2018 30 Apr 2018 07 Oct 2019 Administrative Officer Report, Report, CAO 02-18 be referred to Staff to CAO 02-18 Re: Corporate review provisions governing Members of Media Relations Policy Council interaction with the media; and, 2. That Members of Council be directed to forward comments regarding the draft Corproate Media Relations Policy to Staff.

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New and Unfinished Business - General Government Item Description Resolution Meeting Date Due Date Revised Date Explanation/Comments Number MD - 4234 Walk of Fame 1. That Staff engage the Downtown Whitby 20 Feb 2018 21 Jan 2019 07 Oct 2019 Business Improvement Area (BIA) as the lead, in consultation with the Downtown Whitby Development Steering Committee (DWDSC), to assist in identifying a community organization that will partner with the Town to develop a Downtown Whitby Walk of Fame; and, 2. That Staff report back on partnership opportunities identified by the Downtown Whitby BIA and DWDSC and operational and financial considerations (including staff time) associated with creating and maintaining a Walk of Fame.

MD - 4283 Community and Marketing 3. That staff report back with a draft Seniors 19 Mar 2018 10 Jun 2019 28 Oct 2019 Services Department Report, Recreation and Leisure Services Strategy in Q2 of CMS 07-18 Re: 2014 – 2018 2019 for Council’s consideration. Recreation and Leisure Services Seniors’ Strategy Update MD - 4286 Community and Marketing 3. That staff report back with a draft Recreation and 19 Mar 2018 10 Jun 2019 23 Sep 2019 Services Department Report, Leisure Services Youth Strategy in Q2 of 2019 for CMS 10-18 Re: 2013 - 2018 Council’s consideration. Recreation and Leisure Services Youth Strategy Update MD - 4338 Legal and By-law Services 5. That staff be directed to report back on the 16 Apr 2018 13 Sep 2020 Department and Public campaign in 2020, including any issues or Works Department Joint challenges encountered, a recommendation to Page 268 of279 Report, LS 12-18 Re: Traffic continue or discontinue the campaign, and future Safety Awareness Sign funding requirements. Agenda Item#5.1. Campaign MD - 4344 Community Signage That Staff report back on options to implement a 16 Apr 2018 04 Mar 2019 10 Feb 2020 community and/or neighbourhood sign program, including strategies for identifying community and/or neighbourhood boundaries.