Special Regular Council

SARNIA CITY COUNCIL

June 23, 2014 4:00 p.m. COUNCIL CHAMBERS, CITY HALL SARNIA, ONTARIO

SPECIAL MEETING AGENDA Page

Disclosures of Pecuniary Interest (Direct or Indirect) and the General Nature Thereof

Action Items

3-26 1. Director of Parks and Recreation and Director of Finance, dated June 2, 2014, regarding Arena Management Strategy – Timing of Next Steps

Public Input into Arena Futures (Attached)

That Sarnia City Council approve the revised timetable for undertaking the components of the Arena Management Strategy as outlined in this report; and

That Sarnia City Council authorize the expenditure of funds for the feasibility analysis, arena structural review and sponsorship program development as outlined in this report from the Parks & Recreation Facility Reserve, to an upset limit $75,000. 27-28 2. Director of Parks and Recreation, dated June 18, 2014, regarding Canadian Hockey Association – Host Agreement

That should the opportunity arise that the Mayor and Clerk be authorized to sign a Host Agreement with the Canadian Hockey Association to host the 2014 World Under 17 Hockey Challenge. 29-38 3. City Solicitor/Clerk, dated June 19th, 2014 regarding Sarnia General Hospital Lands - Proposed Sale by RFP Emergency Medical Services Lands - Proposed Sale to County

That the City’s interest in the Sarnia General Hospital (“SGH”) lands, including those lands used for emergency medical services (“EMS”), be declared surplus.

That the Sale of Land Bylaw and the Surplus Asset Disposal Policy requirements be waived in disposing of these lands.

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Action Items

That a request for proposals (“RFP”) be issued with the support of Bluewater Health (“BWH”) for the SGH lands, except for that portion required for EMS.

That the City’s interest in the lands required for the County’s EMS operation be sold to the County of Lambton for $1.00.

BY-LAWS

39-41 1. For 1st, 2nd and 3rd Readings: A By-law to Confirm the Proceedings of Council at its Meeting held on June 23, 2014

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THE CORPORATION OF THE CITY OF SARNIA People Serving People

PARKS AND RECREATION DEPARTMENT

OPEN SESSION REPORT

TO: Mayor Bradley and Members of Sarnia City Council

FROM: Ian Smith, Director of Parks and Recreation Brian McKay, CPA, CA, Director of Finance

DATE: June 2, 2014

SUBJECT: Arena Management Strategy – Timing of Next Steps

Recommendation: It is recommended:

1. That Sarnia City Council approve the revised timetable for undertaking the components of the Arena Management Strategy as outlined in this report; and

2. That Sarnia City Council authorize the expenditure of funds for the feasibility analysis, arena structural review and sponsorship program development as outlined in this report from the Parks & Recreation Facility Reserve, to an upset limit $75,000.

Background: At the recent Council meeting of April 28th, an Arena Management Strategy was approved by Council. The strategy took a longer term view of arena needs in the City, directing staff to undertake a feasibility analysis for arena facilities, an asset management plan for all arenas and to finalize negotiations by June 30, 2014 with Lambton College on potential divestiture and repurposing of RBC2 to a multi-purpose field house. In addition, the strategy indicated continued operation of the City arenas, the development of a sponsorship program and directed staff to work with user groups to transition to five ice surfaces from the current six.

Since this report was considered by Council, staff have focused efforts on transferring RBC operations to the City from the current operator. As part of this process, a tour of the facility was conducted and it was determined that

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a structural assessment is in order. Further discussions with Lambton College have indicated that the College wishes to know the outcome of the structural assessment prior to finalizing negotiations on RBC2.

Following the April 28th meeting of Council, correspondence has been received from user groups and citizens indicating some confusion regarding the Arena Management Strategy. To remedy this, staff have prepared the Frequently Asked Questions (FAQ) guide attached to this report. Concerns were also raised regarding the order and timing of undertaking the components of the Strategy. Specifically, there is a desire to see the feasibility study and asset management plan completed prior to any decision made by Council on a proposal to divest RBC2 to the College. Staff have considered a revised timetable for the work with the three components of feasibility analysis, asset management plan and College divestiture proposal being completed simultaneously for Council’s consideration in January, 2015. The College is amenable to this timetable as it provides additional time for their due diligence.

This report is an update on the next steps of the Strategy with this revised timetable in mind.

Comments: The next steps/timeframe for each component of the Arena Management Strategy are provided below following on the resolutions adopted by Council on April 28th.

1. “That Council direct staff to prepare a report analyzing the feasibility of constructing a one or two pad arena to partner with Clearwater Arenas as a multi pad complex replacing Sarnia Arena and Germain Arena by 2020.”

Staff plan to undertake the feasibility report immediately with the report addressing the following components: • Demographic and arena usage analysis to determine arena needs over time; • Structural assessment of all arena facilities to determine building and component life expectancy and investment requirements to meet current standards to be completed by a qualified Engineer; • Development of various scenarios to meet future needs, i.e., renovating or building new; • Feasibility assessment of various scenarios, including consideration for capital, operating, financing and implications for the tax base for each scenario;

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• Assessment of available funding sources for each scenario; • Input from all sports groups including hockey, soccer, lacrosse as well as other indoor sports organizations/ groups; • Locational and site analysis of future arena needs.

This work is a continuation of the arena study undertaken by BMA Management Consulting (BMA) in the Fall of 2013. BMA will continue to function as the lead consultant; other specialist work, including demographic analysis, would be sub-contracted by BMA as required. BMA will complete the additional arena feasibility report within the context of the operations of the Parks & Recreation Department in order to report on department-wide savings.

This work will be undertaken over the coming months with a report to Council in January, 2015.

2. “That an Asset Management program be established for all arenas using the report as prepared by Ameresco in 2013.”

The Asset Management program will include a review of all City arenas by a qualified Engineer to determine their structural integrity and will also rely on the Ameresco report as well as other available resources. The Asset Management Program will be undertaken by City staff with the goal of having a preliminary component finalized for inclusion in the 2015 Parks and Recreation Capital Budget process.

The final Asset Management Program report will be presented to Council in January, 2015.

3. “That Germain Arena is open for the 2014-15 ice season and that Sarnia Arena open for May 1, 2015 allowing for summer rentals.”

This recommendation provides for Germain Arena to remain open for the 2014-15 ice season and makes provision for summer ice in the Sarnia Arena commencing in 2015 in the event that RBC2 may be divested. The future of Germain beyond the upcoming ice season and the location of summer ice will be contingent on the outcome of future Council decisions regarding the feasibility study, asset management and divestiture proposal.

4. “That the City finalize negotiations with Lambton College on the divesture of the RBC#2 by June 30, 2014 to allow the

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College to acquire and repurpose the facility to a multipurpose field house with the project work to begin on April 1, 2015.”

Discussions with the College will continue over the next several months to allow the College to undertake its due diligence as well as benefit from the feasibility analysis and asset management plan prior to finalizing negotiations. It is intended that the final divestiture proposal will be reported to Council in January, 2015.

5. “That City staff work with arena user groups and tournament organizers to transition from six ice surfaces to five in order to minimize impacts.”

This activity will be implemented after January, 2015, pending the decisions of Council on the other components of the Strategy.

6. “That a sponsorship program be developed for consideration by Council for the Parks and Recreation Department to promote potential partnerships with Sarnia’s business, industrial and commercial sectors.”

The development of a sponsorship program will be undertaken by BMA in conjunction with the feasibility analysis and will be provided to Council for consideration in January, 2015.

Consultation: Consultation on this report was with the City Manager and the City Solicitor/Clerk.

Financial Implications: The feasibility report, including the structural analysis and sponsorship program report, will be funded from the Parks & Recreation Facility Reserve, with an upset limit $75,000. This reserve has an uncommitted balance of $82,533.00.

Prepared By: Prepared By:

Ian J. Smith Brian McKay, CPA CA Director of Parks and Recreation Director of Finance

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Approved by

Margaret Misek-Evans City Manager

Attachment: Frequently Asked Questions – FAQ

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Attachment 1 Frequently Asked Questions – Arena Management Strategy

What is the present use at the City Arenas? • On average, currently, the arenas are booked 66% of prime time. • Prime Time is 5:30 p.m. to 10:30 p.m. Monday to Friday and 7:00 a.m. to 9:00 p.m. on Saturday and Sundays. • City arenas have declining use with no early morning use and no late night use in any of Sarnia, Germain or Clearwater Arenas. • For the upcoming ice season, the City has introduced a pricing strategy to encourage use during daytime and late evenings. In addition, for the next three years, the City has frozen all ice rates for user groups to increase use at the City arenas.

What are the hockey participation rates among youth? • Based on Hockey Canada statistics – only 9% of boys play hockey as compared to 20 years ago when 18% of boys played hockey; • 4% of girls play hockey as compared to 20 years ago when less than 1% of girls played hockey • 20 years ago, 18% of boys and very few girls played hockey in four Sarnia arenas • In 2014 – 9% of all boys and 4% of all girls play hockey in six Sarnia arenas

What are the financial considerations on City taxpayers of the Arenas? • In 2013 – the arenas cost to the City taxpayers was budgeted to be $477,131. • With the City assuming the RBC – the 2015 anticipated cost for the arenas with no closures occurring will be $1,344,873 • The City has over $9.2 million in deferred maintenance/asset management costs that will need to be funded to maintain the present inventory of arenas. • An asset management program using the recognized standard of 2% of asset value ($43,000,000 as per the 2013 Ameresco Study) the annual cost would be $866,000. This would result in $2,210,873 for the annual cost of operating and maintaining City Arenas. This would not reduce any of the deferred maintenance cost of $9.2 million. • The incremental tax impact would include the addition of $710,000 for the RBC plus the annual capital cost of $866,000 for a total of $1,576,000. The incremental tax impact on the levy would be 2.6%. • The sale/ repurposing of RBC2 will save taxpayers approximately $143,250/year in debt and operational costs over the next 16 years.

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What is being proposed with the Arena Management Strategy presented to Council in April, 2014? • Instead of two arenas closing as originally proposed (Germain and RBC2) – only one arena is proposed to close in 2015. • No arena closings in 2014-15 ice season, as requested by user groups. • Maintain Germain, Sarnia and Clearwater Arenas in operation and accommodate summer ice in the Sarnia Arena. • Finalize negotiations with the College for a proposal to convert one arena – RBC2 - to a hardwood facility allowing for other sports to be played such as basketball, volleyball, badminton and a wide range of hardwood sports, subject to Council approval of a divestiture of RBC2 to Lambton College in 2015. • Undertake a feasibility analysis for Council’s consideration on future arena needs in Sarnia, with a view to a multi-pad arena, potentially adding one or two pads to the Clearwater Arena replacing Sarnia and Germain arenas by 2020. • Establish an asset management program for all arenas based on the 2013 Ameresco Study and other resources. • Develop a sponsorship program to raise revenues from arena facilities. • Work with user groups and tournaments to transition from 6 ice pads to 5.

What is the potential effect of the strategy on user groups and tournaments? • By the end of 2015, the City could potentially have 5 arenas and 1 indoor hardwood facility. • Youth and adults would have good hockey facilities as well as a new indoor sport facility to increase their recreational opportunities. • The new indoor facilities at RBC#2 and Germain Arena would also host tournaments and daily sports programs. • Tournament activity will continue in the City at the 5 available ice pads. • The City of London with a single pad arena – Bud Gardens (the former JLC) is able to host Memorial Cups, Canadian Figure Skating Championships and countless other events without a second (practice) rink.

Why convert RBC2 then build new arena(s)? • Due to its location, RBC2 is the only city rink that has potential to be sold and repurposed. • Lambton College is interested in purchasing RBC2 and this will allow community access in this facility evening and weekends – expanding the recreational opportunities for Sarnia residents at no cost to the taxpayer.

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• This will save taxpayers approximately $143,250/year in debt and operating costs over the next 16 years (excluding asset management costs).

What if RBC2 remains open? • Would recommend re-visiting the proposal to close Germain Arena as an ice surface and follow up on the proposal to repurpose it into an indoor artificial turf facility to house the growing number of soccer players and provide an indoor sports facility for sports teams to train in preparation of upcoming seasons.

With declining ice usage, why build new arena(s)? • The City is conducting a Feasibility Analysis which will assist in answering this question. • Currently, present arena users and Silver Stick tournament organizers indicate they need 5 arenas to provide a full program.

What is the current state of the arena inventory in Sarnia? • In 2014, Sarnia Arena is 65 years old and is one of the 10 oldest arenas in use of the over 750 arenas in Ontario; Clearwater and Germain arenas are nearly 40 years old; RBC is 16 years old. • Older arenas due to aging require greater funds to maintain with limited options for adapting to energy saving technologies.

What consider a new multi-pad addition to Clearwater? • Creates up to five full sized co-located rinks which can be used for tournament activities, including Silver Stick for boys and girls. • Economies of scale for arena management, operations, ice resurfacers and other equipment and community use. • New buildings that are cost effective to maintain and energy efficient • All activity happens in one facility – making it easier for all groups to organize and promote their activities • Up to 3 full practice arenas with one 800 seat arena to host small tournaments and full winter season of use in one facility. • The RBC, similar to the London Bud Gardens (formerly JLC), would continue to host major events should the City be fortunate enough to attract these events.

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• Current Facility Index Condition of Germain is poor, Sarnia is fair and Clearwater is good. • According to the Ameresco Study, asset management plans and funds are required to address $9.2 million in deferred maintenance across all arenas. • The City will assume mortgage and debt responsibilities for the RBC of $588,000 per year for the next 16 years as well as operating costs, for a net annual cost to the taxpayer for the RBC in the order of $710,000 plus asset management costs. • Should arena use continue its 15 year trend of losing 1.4% use per year, by 2020 use in the arenas will be less than 60% in prime time. • The City foregoes an opportunity to diversify recreation facilities to provide community access to a range of hardwood sports at no cost to the taxpayer. • The City foregoes an opportunity to reduce annual arena debt and operating costs of $143,250, if it does not divest RBC2. • The College loses an opportunity to enhance student life experience and attract new students as well as expand and modernize its facilities on the main campus. • The City foregoes an opportunity to attract other tournament use, beyond hockey.

What is the annual tax impact of the current RBC2 and Germain Arena operations? • The annual tax impact of the RBC2 operation is $143,250 which is 0.24% of the 2014 property tax levy. • The annual tax impact of a full year of Germain Arena operations is $58,835 based on the 2013 year end actuals which is 0.10% of the 2014 property tax levy. • The combined operations of RBC2 and the Germain Arena are $202,085 which is 0.34% of the 2014 property tax levy. • The following charts analyze the total tax levy impact of the two Arenas:

Arena Amount ($) Tax Impact (%) RBC #2 143,250 0.24% Germain 58,835 0.10% TOTAL: 202,085 0.34%

What are the next steps? • To undertake an asset management plan for the arenas and RBC. • To provide Council with the results of negotiations with the College on RBC2.

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• To undertake and provide Council with a feasibility analysis, taking into consideration future arena needs, current and future asset management needs of the current arena inventory, capital costs and current and future projections of annual operating costs.

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PARKS AND RECREATION DEPARTMENT CORRESPONDENCE People Serving People

DATE: June 19, 2014

TO: Mayor Bradley and Council Margaret Misek-Evans, City Manager

FROM: Ian Smith, Director of Parks and Recreation

RE: Public Input into Arena Futures

The Arena Management report was posted under the Public Consultations section of the city's website on June 3rd. The public were invited to comment until June 18th. Since that time, we have received four submissions which are attached.

Respectfully submitted

Ian Smith Director of Parks and Recreation

Attachs.

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From: Wayne Steele on Monday, June 16 at 2:30 p.m.

I have read the last report on the arena Management Strategy and notice that the most concern seems to about loss of ice time for hockey games even though the ice time that is now available is not being fully utilized. The visíon of a 3 or 4 ice pad complex at the present Clearwater site has a great deal of appeal to me as the Sarnia Home Show finds itself short of room to accommodate the amount of exhibitors that would like to participate. I fear that while this future venue would be a great asset to the community and the Sarnia Home Show that hockey will still be first and foremost when it comes to any other needs that may occur. For the 2015 Sarnia Home Show we are faced with the Easter weekend falling on the time we usually hold our show and the following weekend is the bigger area London Home Show which draws heavily from this area in terms of exhibitors and attendees alike and it makes little sense to hold these shows the same weekend. This puts the Sarnia Home Show past the middle of April where we find some of our bigger area landscapers and greenhouse operators are well into their busy season and can't be a part of the show. We had asked if the ice could be taken out 1 week earlier than usual and got a pretty resounding no as there are still hockey games going on and it would shorten the season even though there appears to be ice time that goes unused all the time and with a full year advance notice one would think that 3 or 4 days of games could be relocated to unused facilities. I guess what I am trying to say is that while we at the Sarnia Home Show would love the oppoftunity to present an event twice the size of the one we presently showcase, we might be in even greater danger of getting 'a preferable time as the culture of hockey first and everything else second still exists even in a time of steady erosion and with all the ice in one place, we might find ourselves in a position much worse than we presently do. Hockey doesn't bend or ice time.is not assigned with the thought of taking full advantage of every opportunity to generate money and provide a facility that is truly going to be a community complex for Sarnia.

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From: Sandy Waring To: Sandy Waring Subject: FW: Arena"s future Date: June-17-14 11:45:31 AM Importance: High

From: Lucio Sandrin [mailto:[email protected]] Sent: June-16-14 1:57 PM To: Arena Future Subject: Arena's future Importance: High

To Mayor Mike Bradley and all Councillors

If you add an “ Ice Pad “ to Clearwater Arena, that’s fine if you have more adequate parking ( critical to arena use ) and then close Germain Park arena and convert it to an inside year round soccer field or whatever ! ! !

Please reconsider and just don’t close an arena without a more careful review of all variables.

As a minor, little guy, the SMAA was a super great way of keeping occupied and growing up while I also played for our school teams then, in the school system, many many years ago.

Keeping our children and grandchildren busy playing hockey, soccer, baseball, volleyball etc etc keeps them active, healthy, busy and involved. Beats sitting on their butt on the computer, cell phone etc for 10 hours a day.

A very concerned Grandparent ! ! !

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From: Sandy Waring To: Sandy Waring Subject: FW: Jce pads Date: June-18-14 1:32:55 PM

-----Original Message----- From: Terry and Penny Lilley [mailto:[email protected]] Sent: June-18-14 8:53 AM To: Arena Future Subject: Jce pads

If the council wants to close the Sarnia Arena, my feeling is that one of the ice pads being considered at Clearwater Arena needs to be a Showcase pad with a seating capacity of about 1500 to 2000 .

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From: Sandy Waring To: Sandy Waring Subject: FW: Arena Task Force Group - Arena Strategy FAQ Jun 2 report Response Date: June-18-14 3:34:03 PM Attachments: Arena Strategy FAQ Jun 2 report ATF Repsonse.doc

-----Original Message----- From: Lauzon, Linda [mailto:[email protected]] Sent: June-18-14 3:26 PM To: Ian Smith; Mike Bradley; [email protected]; Jim Foubister; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; Dave Boushy; Arena Future; City Manager Email; Brian Knott; [email protected] Cc: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; Wayne Scarrow; [email protected]; [email protected]; [email protected] Subject: Arena Task Force Group - Arena Strategy FAQ Jun 2 report Repsonse

<> Please find attached the Arena Task Force Group response to the Jun 2 Arena Management Strategy - Timing of Next Steps. Thank you in advance for reviewing this document. Please note any one of the volunteer task force members are available to answer questions/concerns or provide further clarification on any issues.

Mike Johnson - Chair, Sarnia Hockey Mike Kelly - President, Lambton AAA Mark Moore/Sonia Rivard - Bluewater Regional Training Centre Brad Jackson - Girls Hockey Doug Jackson - Skate Sarnia Tom Hewitt - President, Sarnia Legionnaires Wayne Scarrow - Past Chair, Sarnia Hockey Linda Lauzon - Ice Scheduler, Sarnia Hockey/Lambton AAA

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Arena Task Force Group

To: Mayor Bradley and Members of Sarnia City Council

Date: June 17, 2014

Subject: Response to Arena Management Strategy – Timing of Next Steps - June 2, 2014 report

Politics has an obligation to make an informed decision – politics have failed in the management of City arenas – Sarnia, Germain, Clearwater and RBC. In April 2009 one Councillor had concerns with the situation of the RBC. “It is time to take inventory of the Sarnia Sports and Entertainment Centre. While the Sarnia Sting has an operating agreement for its daily operation the City owns the building. The equipment needs to be looked at. We want to avoid the experience of other communities who have been handed back their sport complexes at the end of the operating agreement “with a list of problems”. The arena needs to be managed with respect due to the fact the City owns the building…We can’t ignore problems with leading the City vulnerable to criticism.” Five years later the City is facing this criticism in all arenas.

The Local Arena Task Force Group agrees Germain can close today, the City needs full size pads, and the City needs to supervise the management of the RBC before selling off one-half of the City’s newest arena.

What is the present use at the City Arenas? • On average, currently, the arenas are booked 66% of prime time. As per 2014-2015 Draft Schedule provided by Parks & Recreation possible Prime time hours equals 330 hours per week (55 hrs x 6 arenas). 2013-2014 actual prime time hours rented equals 287 hours therefore on average the arenas are booked 87% during prime time hours.

• Prime Time is 5:30 p.m. to 10:30 p.m. Monday to Friday and 7:00 a.m. to 9:00 p.m. on Saturday and Sundays. According to the Parks and Recreation Department Ice Application form prime time hours are Monday – Friday 5:30 – 10:30 pm Saturday/Sunday 7:30 am – 10:30 pm

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• City arenas have declining use with no early morning use and no late night use in any of Sarnia, Germain or Clearwater Arenas. Bluewater Regional Training Center uses early morning ice on a ticket price basis and would continue to do so. AM ice needs to target adult groups as most schools start at 8:20 – 9:00 am. PM ice after 10:30 pm needs to target adult group as well. Based on the draft ice schedules availability of weekly prime time hours 9:30 pm – 12:00 am Monday – Friday 9:30 pm – 12:00 am Germain 10 hrs, Sarnia/Clearwater 24 hrs, RBC1 5 and RBC2 is 4.5. Saturday/Sunday Germain 12.5 hrs, Sarnia/Clearwater 12.5 hours, RBC1 4 hrs, RBC2 2.5 hours

• For the upcoming ice season, the City has introduced a pricing strategy to encourage use during daytime and late evenings. In addition, for the next three years, the City has frozen all ice rates for user groups to increase use at the City arenas. It is great the ice rates are frozen at 2013-2014 rates though the City needs to understand no matter the price reduction for renting day time ice will likely not increase revenue due to users attending school or working. The City has an opportunity to reduce the cost of ice rental during prime time hours to attract users. Point Edward and Mooretown arenas are full even though their population is less than Sarnia.

What are the hockey participation rates among youth? • Based on Hockey Canada statistics – only 9% of boys play hockey as compared to 20 years ago when 18% of boys played hockey – Hockey is back and growing While it may be true that the growth rate in Hockey Canada registration has been low for the past decade, it is positive. In the 2005-2006 season, 17.6% of boys and 2.5% of girls aged 5-17 were registered for hockey. By the 2012/2013 season, 20.8% of boys and 3.6% of girls were playing hockey. The growth rate is not huge, but contrary to what many believe, the sport is actually gaining in popularity. While the population has decreased registered players have increased.

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• 4% of girls play hockey as compared to 20 years ago when less than 1% of girls played hockey this indicates more girls are participating in hockey thus enrolment numbers are not declining

• In 2014 – 9% of all boys and 4% of all girls play hockey in six Sarnia arenas Parks and Recreation department has not been in contact with the user groups – current user groups’ enrolment numbers are approx. 2683 participants. This yearly figure is consistent with yearly averages over the last 5 years or more. Bluewater Training Regional Centre enrollment is up this year by 25% increasing their ice requirements an additional week during their spring program. Skate Sarnia enrolment increased 10% in 2013-2014.

What are the financial considerations on City taxpayers of the Arenas? • In 2013 – the arenas cost to the City taxpayers was budgeted to be $477,131. According to the 2014 Current City Approved Budget arena deficit is $391,003 (excl. RBC arena) savings of $86,128 from 2013. Closing Germain the City will save an additional $58,273. 2014-2015 total savings is $144,401 to be used to offset RBC2 $143,250 potential operating deficit. Or the City may consider taking Germain out of service this year to see how the user groups adjust in addition to saving $144,401.

• With the City assuming the RBC – the 2015 anticipated cost for the arenas with no closures occurring will be $1,344,873 – Has the City verified/confirmed the operating costs of the RBC? Has the City reviewed the RBC financial statements for the past years to truly know the costs?

• The City has over $9.2 million in deferred maintenance/asset management costs that will need to be funded to maintain the present inventory of arenas. Is it fiscally responsible to sell half of a City’s asset, for potentially $2.1 mil when the Parks and Recreation Director stipulate the RBC capital debt will not be paid off until 2030?

• The incremental tax impact would include the addition of $710,000 for the RBC plus the annual capital cost of $866,000 for a total of $1,576,000. The incremental tax impact on the levy would be 2.6%. According to page 6 of the BMA study (Nov 22, 2013) indicated if management of all arenas stayed status quo the tax levy increase would be 0.99% to breakeven.

• The sale/ repurposing of RBC2 will save taxpayers approximately $143,250/year in debt and operational costs over the next 16 years. The City needs to manage the RBC in its entirety to see where the mismanagement incurred before selling off an City asset.

What is being proposed with the Arena Management Strategy presented to Council in April, 2014? • Instead of two arenas closing as originally proposed (Germain and RBC2) – only one arena is proposed to close in 2015. Germain is the arena that should be closed for the 2014-2015 season forward. RBC2 only needs to increase prime time usage by 16% where Germain needs to increase prime time usage 26%. Closing Germain will displace 2 user groups whereas closing RBC2 will affect 10 user groups.

• No arena closings in 2014-15 ice season, as requested by user groups. The user groups have asked to close Germain immediately.

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• Finalize negotiations with the College for a proposal to convert one arena – RBC2 - to a hardwood facility allowing for other sports to be played such as basketball, volleyball, badminton and a wide range of hardwood sports, subject to Council approval of a divestiture of RBC2 to Lambton College in 2015. Has the City polled basketball, volleyball, badminton user groups to see if converting RBC2 into a hardwood facility will meet their requirements as these groups currently use school gyms? Is the City pushing for the sale of RBC2 to Lambton College?

• Undertake a feasibility analysis for Council’s consideration on future arena needs in Sarnia, with a view to a multi-pad arena, potentially adding one or two pads to the Clearwater Arena replacing Sarnia and Germain arenas by 2020. 2020 is too late to have new arenas built. During the next 6 years with less ice surfaces revenue decreases along with the ability to host events. Once events are downsized the User Groups or City will not be able to regenerate interest in 2020 to host such events as Boys or Girls Silver Stick tournaments, figure skating competitions, lacrosse tournaments as they have moved on to other Cities that can provide the venue and caliber the City of Sarnia has provide in the past.

• Develop a sponsorship program to raise revenues from arena facilities. It was the suggestion of the Arena Task Force Group in December to work hand in hand with the City to increase revenue for arenas. We are still committed to developing and working alongside the City to ensure our arenas will be here for the future.

• Work with user groups and tournaments to transition from 6 ice pads to 5. Since November the Parks Department has had no contact with the users groups other than when initiated by our group stepping forward -- thus the reason for the formation of the Arena Task Force Group. The Task Force group is committed and meets regularly to the decisions being made are in the best interest of the community.

What is the potential effect of the strategy on user groups and tournaments? • By the end of 2015, the City could potentially have 5 arenas and 1 indoor hardwood facility. Currently there 5 arenas are Sarnia, Clearwater (2 pads), RBC (2 pads) and Germain either a hard surface or turf facility.

• The new indoor facilities at RBC#2 and Germain Arena would also host tournaments and daily sports programs. Which tournaments and daily sports programs? Schools are currently used for basketball, badminton, volleyball etc.

• Tournament activity will continue in the City at the 5 available ice pads. If the 5 pads are Sarnia, Clearwater (2) and RBC (2) we can sustain the tournaments Sarnia has hosted over the past 40 years. If RBC2 closes and Germain remains open Mr. Smith cannot ensure our Silver Stick tournaments and/or other provincial /national events will not be jeopardized as a result of fewer venues in addition to alleviate the impact this will have on the current revenue “spinoff” these events bring into the City.

• The City of London with a single pad arena – Bud Gardens (the former JLC) is able to host Memorial Cups, Canadian Figure Skating Championships and countless other events without a second (practice) rink. The City of London has 11 other arenas – Western Fair (4), Argyle (1), Medway (1), Nichols (1), Glen Cairn (1), Kinsmen (2) Stronach (2),

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Farquharson (1) and Ice Park (2) that have large surfaces to accommodate practices and qualifying events without disrupting other rentals and play

Why convert RBC2 then build new arena(s)? • Due to its location, RBC2 is the only city rink that has potential to be sold and repurposed. There was interest in Germain – Boys Soccer club provided $125, 000 deposit to repurpose this facility. What is being done with this money?

• Lambton College is interested in purchasing RBC2 and this will allow community access in this facility evening and weekends – expanding the recreational opportunities for Sarnia residents at no cost to the taxpayer. There will be a cost to Sarnia residents we will be losing one of our newest ice pads, Boys/Girls Silver Stick tournaments will need to reduce the amount of teams who participant, lost revenue to the City these two tournaments approx generate $5,000,000 in revenue for the City and City businesses and taxpayers will still be paying down the capital arena asset management debt.

• This will save taxpayers approximately $143,250/year in debt and operating costs over the next 16 years (excluding asset management costs). Mr. Smith’s numbers are contradicting as further down it is stated the City will assume the RBC mortgage and debt of $588,000 per year for the next 16 years. We the taxpayers and council members need to ensure the numbers are reported accurately.

With declining ice usage, why build new arena(s)? How much has the ice usage declined over the span of time. As the users that utilize the arenas would say the weekly ice usage fluctuates over the years up or down within a few hours or more.

• The City is conducting a Feasibility Analysis which will assist in answering this question. User groups should be a part of the Feasibility Analysis – ice usage need to be relevant to our City and not based on national or provincial statistics.

• Currently, present arena users and Silver Stick tournament organizers indicate they need 5 arenas to provide a full program. Yes as long as the 5 arenas are Sarnia, Clearwater (2) and RBC (2). Keeping RBC intact suits the needs of tournaments, organizers, volunteers and visiting participants

Page 22 of 41 Action Item #1 - June 23, 2014 offered to assist in applications and getting government incentives to improve our arenas. Lowes supports “Arena Reno” will provide up to $500,000 in upgrading arenas.

• New buildings that are cost effective to maintain and energy efficient. Through grants/sponsorship our current 5 arenas can be more cost efficient and effective. Local Arena Task Force group will to work with the City on these incentives. • All activity happens in one facility – making it easier for all groups to organize and promote their activities Agreed this is why both pads at RBC must stay intact

• Up to 3 full practice arenas with one 800 seat arena to host small tournaments and full winter season of use in one facility. Are 800 seats sufficient to accommodate our current Jr. B team fans in the event Sarnia arena is closed?

• The RBC, similar to the London Bud Gardens (formerly JLC), would continue to host major events should the City be fortunate enough to attract these events. Need to have someone to attract such events. This was one of the original ideas when the RBC twin pad was built in 1998 to the tune of $15 million dollars? Also agreed was $1 -$ 2 dollars of ticket sales where to be reinvested in the capital costs to maintain the arena. Was this enforced and was the money used to offset capital expenditures. Also need to understand the City of Sarnia will never be able to host the same caliber of events as the Bud Gardens – contracts in place about events happening with a certain radius of each other.

What happens if the City does nothing – does not sell RBC2, keeps Sarnia and Germain Arenas open, with the additional operation of RBC1 and 2 by the City? • The taxpayers pay more to support aging arenas that are among the oldest arenas in the province without a plan for the future. It is up to the City to implement a plan. We as tax payers need to get the arena allocation in line with the provincial average median from $18 to $56. This can be done through slicing the pie differently. Shave off a little bit from other city services for reallocation to arenas and bring us in alignment with provincial standards. The $40 dollar reallocation will result in $1,040,000 ($40 x 26,000 households) funding to offset operating costs and capital maintenance. The city needs to do a better job with capital investment than they have in the past. The city has invested very little into our arenas over the past 20 years while the city was reducing its' own debt. The City also has said this aggressive debt repayment has had no impact to the facilities and tax payers. With the City debt under control, it is time to reinvest in City's assets.

• Current Facility Index Condition of Germain is poor, Sarnia is fair and Clearwater is good. This makes sense to close Germain immediately save $58,835.

• The City will assume mortgage and debt responsibilities for the RBC of $588,000 per year for the next 16 years as well as operating costs, for a net annual cost to the taxpayer for the RBC in the order of $710,000 plus asset management costs. Why did the City approve to accept $800,000 on behalf of SSC Inc. for outstanding arrears of

Page 23 of 41 Action Item #1 - June 23, 2014 rent, guarantee payment and surcharges associates either the operation of the RBC? At the same time Council approved $565,800 allocated from reserves to be used to fund the outstanding arrears associated with RBC operations (as per City’s April 14, 2014 minutes). Why was SSC Inc allowed to walk away from financial responsibilities? Why 16 years to pay off debt?

• Should arena use continue its 15 year trend of losing 1.4% use per year, by 2020 use in the arenas will be less than 60% in prime time. Already know 2013-2014 prime time usage is 73%? 1% of 69 prime time hours equals 1 hour per week, 52 hours per year. With strategies in place to promote or entice user groups to utilize our City arenas the trend usage can be turned around to be a positive incline of prime time hours by 2020. Providing recreational ice surfaces is a service the City provides. We are not sure why it appears to be the only area the City has targeted to be revenue neutral? While we need to be aware of escalating costs and decreasing revenues, the City has not managed this well. What other "city services" are losing money that should be looked at -- Public transit, Swimming facilities, City owned greenhouses to name a few?

• The City foregoes an opportunity to reduce annual arena debt and operating costs of $143,250, if it does not divest RBC2. Close Germain save $58,273 add the $86,128 savings from the 2014 Current Approved Budget for a savings of $144,401 to offset the $143,250 arena debt and operating costs. Increase tax allocation for arenas to provincial median $58.

• The College loses an opportunity to enhance student life experience and attract new students as well as expand and modernize its facilities on the main campus. Schools host basketball, volleyball, badminton tournaments as well if the venue is not built to the provincial standard for each different tournament the sale of RBC2 will not meet Lambton College requirements.

• The City foregoes an opportunity to attract other tournament use, beyond hockey. Schools host basketball, volleyball, badminton tournaments as well if the venue is not built to the provincial standard for each different tournament the sale of RBC2 will not meet Lambton College requirements.

What is the annual tax impact of the current RBC2 and Germain Arena operations? Close Germain save $58,835 plus the 10% tax levy Reallocate current $18 tax levy to match $58 provincial median by reviewing tax levy distributions amongst other City departments – slicing the pie differently Nov 23, 2013 BMA report (page 6) indicates if all arenas stay status quo the tax levy would increase be 0.99%

• The annual tax impact of the RBC2 operation is $143,250 which is 0.24% of the 2014 property tax levy. • The annual tax impact of a full year of Germain Arena operations is $58,835 based on the 2013 year end actual which is 0.10% of the 2014 property tax levy. • The combined operations of RBC2 and the Germain Arena are $202,085 which is 0.34% of the 2014 property tax levy.

Page 24 of 41 Action Item #1 - June 23, 2014

• The following charts analyze the total tax levy impact of the two Arenas: Arena Amount ($) Tax Impact (%) RBC #2 143,250 0.24% Germain 58,835 0.10% TOTAL: 202,085 0.34%

What are the next steps? • To undertake an asset management plan for the arenas and RBC. • To provide Council with the results of negotiations with the College on RBC2. • To undertake and provide Council with a feasibility analysis, taking into consideration future arena needs, current and future asset management needs of the current arena inventory, capital costs and current and future projections of annual operating costs.

How will the community be involved? • As this is continuing process, there will be opportunities for further input through Council meetings and further consultation through public engagement to discuss the future of the arena operation. • There will be open and transparent sharing of information through a dedicated web page and e-mail address for the arena management strategy. • User groups such as indoor sports groups, soccer groups and other sports groups will have an opportunity to provide input to comment on the creation of new sports venues • The City staff will work with arena user groups on any transitions as finalized by Council as the Arena Management Strategy moves forward. Council needs to hear all the facts not just the ones that guide us to false hope and half answers. Mr Smith must engage and work with the user groups. Council has expressed this several times and the Parks department must employ everyone yet this has not happened. The Arena Task Force group has initiated any meeting or request for information. Noted in the June 5th meeting agenda in reference to the May 5th meeting regular meeting Councillor Gillis asked if a date had be set for a meeting with the RBC user groups Mr. Smith advised that this has not yet been established. Just as in the past Mr. Smith has not established contact with the user groups for any arena discussions or information.

In conclusion:

Over the past 8 months the Arena Task Force Group have been open, honest and available for discussions regarding this process and will continue to be moving forward. The City has a great opportunity to work closely with the user groups working towards a resolution that will benefit taxpayers, community user groups.

We have been formally invited to one meeting held at City Hall where we expressed our opinions only to conclude the meeting with spreadsheets showing us how we transition from 6 arenas to 5. It appears to us this is a "done deal". The discussion was only to facilitate the mandate set by council to the Parks and Recreation department.

This group have reached out on various occasions to have discussions, meetings (group/individually) and a forum to discuss our concerns – we thank those councilors who have participated.

Page 25 of 41 Action Item #1 - June 23, 2014

Our group is by no means a vigilante group trying to get what we want. We are volunteers and ice facility users who are invested in our current and future arenas. We are asking for an educated and informed decision to be made about the City’s current assets and future of these assets.

We are taxpayers who are genuinely dedicated in our own organizations coming together as a group with a common cause to not sell RBC2 and ensure our ice facilities are run properly.

The Arena Task Force Group is dedicated to the thousands of people who use the arenas on annual basis.

With the postponement of the decision to sale RBC2 and completion of the feasibility study until January 2015, as offered in November 2013, our group welcomes the opportunity to be a part of a steering committee to work alongside the City to ensure our youth/adults of today, tomorrow and in the future have sustainable arenas.

On behalf of the Local Arena Task Force Group along with the youth of our community and adult recreation clubs we appreciate the time, effort and seriousness the councilors have invested in these proceedings.

The City of Sarnia is here to serve its people now and in the future. Mistakes made now will cause irreparable harm in the near and not so distant future.

Arena Task Force Group: Doug Jackson – Skate Sarnia Mike Johnson – Chair, Sarnia Hockey Wayne Scarrow – Past Chair, Sarnia Hockey Brad Jackson – Girls Hockey Mark Moore/Sonia Rivard – Bluewater Regional Training Centre Tom Knight – President, Sarnia Legionnaires Mike Kelly – President, Lambton AAA Linda Lauzon – Ice Scheduler Sarnia Hockey/Lambton AAA

Page 26 of 41 Action Item #2 - June 23, 2014

THE CORPORATION OF THE CITY OF SARNIA People Serving People

PARKS AND RECREATION DEPARTMENT

OPEN SESSION REPORT

TO: Mayor Bradley and Members of Sarnia City Council

FROM: Ian Smith Director of Parks and Recreation

DATE: June 18, 2014

SUBJECT: Canadian Hockey Association – Host Agreement

Recommendation: It is recommended:

1. That should the opportunity arise that the Mayor and Clerk be authorized to sign a Host Agreement with the Canadian Hockey Association to host the 2014 World Under 17 Hockey Challenge.

Background: Earlier this year, Tourism Sarnia-Lambton (TSL) submitted a proposal to host the 2014 World Under 17 Hockey Challenge to be held in November, 2014.

The submission has been reviewed and TSL is awaiting official word about hosting this event.

Comments: If TSL submission is successful, the turnaround time period for the acceptance of the event will be very tight. In recognition of this, Council is being asked to authorize the Mayor and Clerk to sign a Host Agreement for the event. Accordingly, a further report will be prepared at that time to update Council on the event.

If the submission is not successful, no further action will be taken.

Page 27 of 41 Action Item #2 - June 23, 2014

Consultation: Consultation on this report was with the City Manager and City Solicitor/ Clerk.

Financial Implications: There are no financial implications regarding this report outside of the standard rental of facilities and support of the event but these details will be finalized upon a successful submission. Council will be updated on this submission as information is received.

Prepared by: Approved by:

Ian Smith Margaret Misek-Evans Director of Parks and Recreation City Manager

Attachment(s): none

Page 28 of 41 Action Item #3 - June 23, 2014

THE CORPORATION OF THE CITY OF SARNIA People Serving People crTY solrcrToR / CLERK'S DEPARTMENT

OPEN SESSION REPORT

TO: Mayor Bradley and Members of Sarnia City Council

FROM: Brian Knott, City Solicitor/Clerk

DATE: June 19,20L4

SU BJ ECT: Sarnia General Hospital Lands - Proposed Sale by RFP Emergency Medical Services Lands - Pro posed sale to County Recommendation:

1. That the City's interest in the Sarnia General Hospital (*SGH") lands, including those lands used for emergency medical services ("EMS"), be declared surplus.

2. That the Sa/e of Land Bylaw and the Surplus Assef Disposal Policy requirements be waived in disposing of these lands.

3. That a request for proposals ("RFP") be issued with the support of Bluewater Health ("BWH") for the SGH lands, except for that portion required for EMS.

4. That the City's interest in the lands required for the County's EMS operation be sold to the County of Lambton for $1.00. Background: At its June 3,2014, meeting Council reconsidered its decision regarding the sale of the SGH Lands and passed the following resolution:

That Sarnia City Council direct staff to open the sale of the former Sarnia General Hospital site to potential third party purchasers and start the sale process,

Discussions with BWH and their legal counsel have raised a question as to the legal ownership of the lands. Both BWH and City staff decided that the best approach was to set that question aside and engage in a joint effort to sell the lands. A letter of support from BWH's legal counsel is attached.

Page 29 of 41 Action Item #3 - June 23, 2014

The City has a Sale of Land Bylaw and a Surplus,Assef Disposal Policy that outlines procedures when disposing of real property. Some of the procedures require providing public bodies with 45 days notice of the proposed sale. Further, where bid documents are involved, there is a weighting system set out that favours price. Staff propose instead a negotiated RFP process as explained below. Comments: It is proposed that a negotiated RFP be issued by the end of June and would be open for response for approximately 30 days. (A map of the proposed RFP lands is attached.) At the beginning of August staff would evaluate the responses as outlined on the attached evaluation form. Following the evaluation a short list would be made whereupon staff would have the option of meeting with one or more respondents should there be a need to ask further questions or negotiate amendments to the bidder's proposed Agreement. Staff would then make a recommendation to Council for final approval sometime in August or early September.

It is recommended that the Sa/e of Land Bylaw and the Surplus Asset Disposal Policy requirements be waived. These tools were intended to deal with green field properties that have a positive value. Given the decommissioning work that is required, the proposed evaluation form emphasizes qualitative factors over price. The bylaw and policy also require a lengthy notification process to government bodies prior to allowing the public an opportunity to obtain surplus property. There is at least one party interested in acquiring the lands and in order to maintain that interest it is necessary to move forward in a timely manner. Given the poor condition of the buildings it is unlikely other government bodies would be interested. Furthermore, given the media exposure of the property over the past few years it is felt that if there was any interest by a government body that the City or BWH would have already been approached.

A negotiated RFP provides a fair and open process for any and all interested parties. Ads will be run in local newspapers, websites, and through focused media such as the Daily Commercial News.

Council should also be aware that the Minister of Health and Long-Term Care must approve the sale of any property used for hospital purposes. This request has been made by BWH and we are waiting a reply.

A letter has been received from the County requesting ownership of that portion of the hospital lands used for EMS purposes (see attached letter). Should the EMS lands form their own parcel of land it is desirable to give

Page 30 of 41 Action Item #3 - June 23, 2014

them sufficient lands for parking. Attached is a map showing the proposed parcel size and anticipated layout of the EMS lands to be transferred. Following a transfer it is anticipated that the County will meet with City staff to amend the site plan accordingly.

In the alternative, Council may wish to include the EMS lands as part of the RFP as a larger land base may be more appealing to bidders. If this were to occur, the bidder could then decide to have the EMS vacate the premises, sell the land to the EMS, or charge rent potentially at the market rate. Consultation: City staff and BWH are working closely to support a successful sale of the hospital property. The County has met with both City and BWH staff concerning the EMS property. Financial Implications: It is not expected that the sale of lands will attract anything more than a nominal sale price. However, a sale will be beneficial as the responsibility of maintaining and decommissioning the building will be removed from the public sector. Furthermore, as the property is developed the City will benefit from an increased tax base.

There will be no costs in transferring the EMS property to the County as they have agreed to pay for all necessary transfer costs. There is the risk, however, that excluding the EMS lands from the RFP may negatively influence a party's interest in responding to the RFP. Alternatively, if the EMS lands are included in the RFP the County EMS may have to relocate or pay rent in perpetuity. In this case, taxpayers of the City would pay over 50 percent of any rental costs through the County levy.

Reviewed by: Approved by: /fr;r/t - '/,ü^rerãI tu Brian Knott Margaret Misek-Evans City Solicitor/Clerk City Manager

This report was prepared by Scott McEachran, Assistant Solicitor Attachment(s): Letter from BWH Legal Counsel June t9,2014 Proposed RFP Evaluation Form Map of property being offered for sale by RFP County Letter & EMS Map

Page 31 of 41 Action Item #3 - June 23, 2014

GÞORGE IYTT'RRfiY SMPLDY BEII,,I¿P BAñß¡9TEK$ AIID SOUCIÎoK3

2 Feny Dock Hill rilayne N. Shipley, LL.B, P.O. Ilox2196 D'Aroy W. Bell, LL.B. Surniq OntârioNTT 7LB John A. Ruffilli, LL.B. Jamcs G. Kohlmeier, LL,B. Tefephone: (519) 336-8770 Edrvard Litrenta, LL.B. Farc (519)336J811 Janct M. Whitehead, LL.B, Pefèr J. Noris, J.D.

Jotrn S. Mclhcluaq Q.C.o928.19?9) Jolrn D. Gcorgc Q.C, (1926-l9t8) Rob€rt G.lìluoy. Q.C, (Itelircd) June 19,2074

Brian Ifuott City Solicitor/Clerk City of Sarnia BYEMATL ONI,Y 255 Cluistina Street North Samia, Ontario N7T 7N2

Dear Sir:

Re¡ Sale of 220 North Mitton Street ("Former General Hospital Site')

Further to oul telephone conversation and the meeting on June 19,2014 at City Hall between City of Sarnia ('City') staff and Mike Lapaine and Sue Denomy of Bluewater Health, once agein I would like to confiün Bluewater Health's support with respect to the disposition of the Former GeneralHospital Site.

As we also discussed, thele is an issue with respect to legal ownelship of the Former General I{ospital Site, but at this point it slrould not inteferc \¡/ith the RFP prrrcess. Bluewater Health is in o'without agleement \r/ith proceeding with the sale plocess on a prejudice basis".

While Bluewatet Health believes the RFP plocess is better handled by the City for reasons pleviously expressed, Bluewater Health did occupy the Former General Hospital Síte and thus is in a position to be part of the process by providing information to a potential buyer as part of its due diligence plocess. It is anticþated that the conüibution of Blue\ ¡ater Health would be in the foJlowing manner:

1 Malte available all docurnents and information that it has in its possession with respect to the physical attributes of the Former General Hospital Site; I

Page 32 of 41 Action Item #3 - June 23, 2014

2. Provide access to the buildings and facilities and have the appropriate staff available on reasonable rcquest to respond to any inquíries regarding the site;

3. Bluewater Health will continue managing the process of obtaining the consent of the Minister of Health and Long-Term Care pursuant to seotion 4(4) of tha Pu.bllc Hospitals Act R.S.O. 1990, Chapter P.40;and

4. Bluewatel'Health signing off on any assets being sold that it has a legal interest in.

Again, Bluewatel Health ñrlly supports and shall be part of the pt'ocess in the disposition of the Former General Hospital Site.

Youru truly,

Shipley Bell, LLP

Littenta EL:ck c.c. Bluewater Health

Page 33 of 41 Action Item #3 - June 23, 2014 Sarnia General Hospital RFP Evaluation Form

o Ownership structure of purchaser, with interest of 25o/o or greater, required for private sector

o Agreement of Purchase and Sale to be included that follows generally the OREA format. Agreement must: - Show the vendor as - The Corporation of the City of Sarnia - Include a minimum purchase price of one thousand dollars - Be signed by purchaser(s) - Include a minimum $50,000 deposit to be held by vendors until purchase complete - Not provide for the ability to assign the agreement, except to a newly formed corporation reflecting the ownership structure submitted in the RFP - Outline timeline for waiving any conditions precedent and subsequent closing - be open for acceptance until 5:00 PM September LO,2OL4 - acknowledge that sale of property is conditional on receiving approval by Minister of Health and Long-Term Care - acknowledge UFFI clause is not applicable and that sale of property is "as is where is" Pass/Fail ***Respondents that do not include the required information above will not be fufther evaluated.**x o Names of senior management team detailing experience in real estate and construction either as developers, managers, or owners

lLo

o Sufficient background information to assess the credit worthiness of the purchaser. This may be satisfied by financial statements, net worth statements, bank recommendations, etc.

o Likely source of funding for acquisition and development

lLo o Vision for the site including development timeline /Ls o Agreement of Purchase and Sale - quality judged by clarity, price, size of deposit, conditions precedent, timeframe to waive conditions and complete transfer, etc. lLo Total /4s A short list of respondents may be invited to meet with staff to answer questions, provide additional information, or negotiate amendments to the Agreement.

Page 34 of 41 Action Item #3 - June 23, 2014

MARIA STREET

ESSEX STREET

oÉ, É z o F z tlJ l¡l l¡l É. t¡l F É U' Ø IJJ z zN o tJl Y E o = GEORGE STREET =

BRIGHT STREET

SUBJECT LANDS 0 25 50 100m Page 35 of 41 Action Item #3 - June 23, 2014

LEGAL SERVICES'CLERK'S DEPARTMENT

789 Broadway Street, Box 3000 Wyoming, ON NON 1T0 Telephone: 519 845-0801 Toll-Free: 1 866-324-6912 COUNTY OF Fax: 519-&45-0818 LAMBTON www.lambtononline.ca

Sent Regular Mail end Email

March 24,2014

City of Sarnia 255 Nodh Christina Street Sarnia ON N7T 7N2

Attn; Brian Knott. ClerP.JS.glicitgl

Dear Mr. Knottl

Re: Land AcguiÇitioJ lsaues lnvolvlnq Sarnia EMS Base

Please accept this conespondence es an official request by The Corporation of the County of Lambton to the City of Sarnia for assistence in acquiring legaltitle to the lands upon which the Samia EMS base is located, at the municipal address of 373 George Street, Sarnia ("the Lands").

Goun$ Gouncil, by way of motion, has instructed County staff to directly engage the Cig andlor Bluewater Health and negotlate appropriate tennsr

BradleylArnold: "Iäaf statr be directed to negotiate terms to acquire lands îrom the City of Samia and other relevant pafties, intended solely forthe purpose of continuing to operate a land ambulance baæ slatíon sifuafsd atthe municipal prcpedy known as 373 George Sfieef, Samia, on the understanding that the Cíty of Samia confinues to support the existing arangament.

Canied"

As you are eware, the County of Lamhon is responsible forthe provision of paramedic services throughout the geographic area of Lambton County, including within the City of Sarnla. The largest EMS base in the County's system is the George Sfeet location. The Coung is interested in acquiring title to both the lands and buildlng æ that it can complywith PSAB Standard PS 3150 with reepectto tangible capitalassets. As the EMS facility continues to age, servrce provision will benefìt from the County's capacity to expend funds on necessary repairs, upgrades or similar capital improvements, which in turn is premised upon asset ownership.

Cøti,U+ ç nuíng+ I ¡¡¡øvatiw

Page 36 of 41 Action Item #3 - June 23, 2014

Sarnia EMS Base Page2

Legalresearch conduc{ed by City and Gounty staff indicates that the City of Sarnia holds title to the Lands (possibly in trust for Bluewater Health). Simultaneously to this request, the County is approachlng Bluewater Health in an attempt to obtain title to the EMS bullding currently situated on the Lands, and further is asking Bluewater Health to waive any legel rights it may have (pursuant to trust) in the Lands, or at least in the portion of the Lands in question.

At time of writing, no formal survey has been taken of the Lands. The Lands can generally be described as a large parcelwhich contains two buildings (one being the EMS station) and a parking lot. The County is seeking ownershlp of only a portion of the lands, which are identif¡ed in the attached Exhibit to this letter, constituting tho Northeast corner of the parcel, bordered by George Street and MacKenzie Street, measuring 50.3 m wide, by 38.4 m deep. ldeally this area would be transferred to the County as a single parcel.

ln addition, the County will require a road entrance/access permit to the property so as to build a new private drive leading to the parking lot on the West and South side of the EMS station. lf Gity staff determine that such a road entrance constitutes bad planning or creates unacceptable traffic issues, then the County requesùs as an altemative the granting of an easement over the Lands so as to have an enforceable legal right to access the parking lot.

The Gounty of Lambton is prepared to componsate the City of Sarnia for the reasonable expenses it incurs with respect to the proposed property disposition, including but not limited to survoy, planning, severance and legal expenses. This offer of cost coverage does not however extend to cover legalcosts associated with determining rights or obligations undor or associated with any potentialtrust. In addition, the Gounty of Lambton is prepared to offer g1 as good and fair consideration for the lands. Assuming the foregoing to be satisfactory, I would invite you to direct an itemized account to my attention at the conclusion of the undertaking.

Itrust the foregoing to be satisftictcry, and lock forward to hearing from you in due couft¡e.

Sincerely,

Cribbs, BA, MA, JD, MPA GM Corporate Seruices / County Solicitor/ Gounty Clerk Ecl. cc: Mike Lapaine, VP Operations/Chief Operatlng Officer, Bluewater Health

Page 37 of 41 Action Item #3 - June 23, 2014

Page 38 of41

PREÊÀREO ÉY owoF sÂRNrA PL.ANNING A zuILDING By-Law #1 - June 23, 2014

BY-LAW NUMBER ___ OF 2014 OF THE CITY OF SARNIA

“A By-law to Confirm the Proceedings of Council at its Meeting held on The 23rd Day of June, 2014”

(Re: Confirming By-Law)

WHEREAS Section 5 (1) of The Municipal Act, 2001, as amended, provides that the powers of a municipality shall be exercised by its Council;

AND WHEREAS Section 5 (3) of The Municipal Act, 2001, as amended, provides that municipal powers shall be exercised by by-law;

NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF SARNIA ENACTS AS FOLLOWS:

1. All actions of the Council of the Corporation of the City of Sarnia at its meeting held on June 23, 2014 in respect to every report, resolution or other action passed and taken by the Council, including the exercise of natural person powers, are hereby adopted, ratified and confirmed by by-law as if each report, resolution or other action was adopted, ratified and confirmed by its separate by-law.

2. The Mayor and the proper officers of the Corporation of the City of Sarnia are hereby authorized and directed to do all things necessary to give effect to the said actions of the Council of the Corporation of the City of Sarnia referred to in section 1.

Page 39 of 41 By-Law #1 - June 23, 2014

This By-law comes into force and effect upon finally being passed.

FINALLY PASSED this 23rd day of June, 2014.

______Mike Bradley Mayor

______Brian W. Knott City Solicitor/Clerk

Page 40 of 41

BY-LAW NUMBER ___ OF 2014 OF THE CITY OF SARNIA

“A By-Law to Confirm the Proceedings of Council at its Meeting Held on the 23rd Day of June, 2014” By - Law #1

READINGS: - FIRST: June 23, 2014 June 23, 2014

SECOND: June 23, 2014

THIRD: June 23, 2014

Page 41 of THE CORPORATION OF THE CITY OF SARNIA City Solicitor/Clerk’s Department City Hall Sarnia, Ontario N7T 7N2