HomeMy WebLinkAbout06 008 Federal Gas Tax
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THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
BY-LAW
NO. 2006 - 008
BEING A BY-LAW TO AUTHORIZE THE SIGNING OF
A MUNICIPAL FUNDING AGREEMENT WITH THE ASSOCIATION OF
MUNICIPALITIES OF ONTARIO (AMO) FOR THE TRANSFER OF
FEDERAL GAS TAX REVENUES UNDER THE NEW DEAL FOR CITIES
AND COMMUNITIES
WHEREAS the Municipal Act, 2001, S.O. 2001, c. 25, Sections 8 and 9 (1)
provides municipalities with the powers of a natural person to enable them to
govern their affairs as they consider appropriate and to enhance their ability to
respond to municipal issues;
AND WHEREAS the Government of Canada, the Government of Ontario, the
Association of Municipalities of Ontario (AMO) and the City of Toronto signed an
agreement under the Government of Canada's New Deal for Cities and
Communities that provides for the transfer of federal gas tax revenue directly to
municipalities in Ontario;
AND WHEREAS it has been determined that the Municipality of Kincardine
wishes to participate in the transfer of federal gas tax revenue as part of the New
Deal for Cities and Communities;
AND WHEREAS the AMO is carrying out the fund administration and
coordinating role as is obligated in the Canada-Ontario-AMO-City of Toronto
Agreement for the Transfer of Federal Gas Tax Revenues under the New Deal
for Cities and Communities to undertake certain activities and requires recipients
to undertake certain activities;
AND WHEREAS Council adopts the priority selection recommendations
contained in Report No. CAO 2006 - 01 (revised) presented at the January 11,
2006 meeting;
AND WHEREAS the Council for Corporation of The Municipality of Kincardine
deems it advisable to enter into a municipal funding agreement with AMO for the
transfer of federal gas tax revenues under the New Deal for Cities and
Communities, as in Schedule "A" attached hereto and forming part of this by-
law;
NOW THEREFORE the Council for The Corporation of the Municipality of
Kincardine ENACTS as follows:
1. That the Municipality of Kincardine enter into a municipal funding agreement
with the Association of Municipalities of Ontario for the transfer of federal gas
tax revenues.
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Gas Tax Revenues Fundingl Agreement By-law
By-law No. 2006 - 008
2. That the Mayor and CAO be authorized to execute this Municipal Funding
Agreement for the Transfer of Federal Gas Tax Revenues under the New
Deal for Cities and Communities between the Association of Municipalities of
Ontario and The Corporation of the Municipality of Kincardine as in Schedule
"A" attached hereto and forming part of this by-law.
3. This By-law shall come into full force and effect upon its final passage.
4. This By-law may be cited as the "Gas Tax Revenues Funding Agreement By-
law".
READ a FIRST, SECOND and THIRD time and FINALLY PASSED this 18th day
of January, 2006.
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Mayor ,.
~~Ierk
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No.~-.llJllJpassed the ~day
of~ 20(Xp .
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Mayor Clerk
MUNICIPAL FUNDING AGREEMENT
FOR THE TRANSFER OF FEDERAL GAS TAX REVENUES UNDER
THE NEW DEAL FOR CITIES AND COMMUNITIES
This Agreement made in duplicate as of 9 day of ~ 20r%: fÝ'
BETWEEN:
The Association of Municipalities of Ontario
(referred to herein as "AMO")
AND:
The Corporation of the Municipality of Kincardine
(referred to herein as the "Recipient")
WHEREAS Ontario municipalities recognize that all governments must work
together collaboratively and in harmony to ensure that investments in
communities are strategic, purposeful and forward-looking.
WHEREAS this Agreement includes the specific provisions on the utilization of
the transfer of federal gas tax for environmentally sustainable municipal
infrastructure to primarily support environmental sustainability objectives under
Canada's New Deal for Cities and Communities.
WHEREAS Ontario municipalities agree that open communication with the
public will best serve the right of Canadians to transparency, public
accountability, and full information about the benefits of New Deal investments
in communities.
WHEREAS the Recipient wishes to enter into this Agreement in order to
participate in the transfer of federal gas tax as part of the New Deal for Cities
and Communities.
WHEREAS AMO is carrying out the fund administration and coordinating role
as is obligated in the Canada-Ontario-AMO-City of Toronto Agreement for the
Transfer of Federal Gas Tax Revenues under the New Deal for Cities and
Communities to undertake certain activities and requires Recipients to
undertake activities as set out in the Agreement.
THEREFORE the Parties agree as follows:
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1. DEFINITIONS AND INTERPRETATION
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1.1. Definitions. When used in this Agreement (including the cover and
execution pages and all of the schedules), the following terms hall have
the meanings ascribed to them below unless the subject matte or context
is inconsistent therewith:
"Agreement" means this Agreement, including the cover and ecution
pages and all of the schedules hereto, and all amendments ma e hereto
in accordance with the provisions hereof.
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"Annual Expenditure Report" means the written annual report to be
prepared and delivered to AMO as set out in Section 7.1 hereto,
"Association of Municipalities of Ontario (AMO)" means a I gaily
incorporated entity under the Corporations Act (Ontario).
"Audit Statement" means a written audit statement to be prep red and
delivered to AMO as set out in Section 7.1 hereto.
"Base Amount" means the total municipally-funded capital sp nding on
Municipal Infrastructure by the Recipient in the period January 1, 2000 to
December 31, 2004 less monies raised under the Development Charges
Act, 1997 (Ontario) and received under Infrastructure Programs
"Canada" means Her Majesty in Right of Canada represented y the
Minister of State (Infrastructure and Communities).
"Capacity Building ProJects" means projects and activities that
strengthen the ability of the Recipient to develop and implement integrated
community sustainabilityplans, as more particularly described i~ Section
4.3.
"Capital Investment Plan" means a document, such as a capi al plan,
created through a public process, with approval from municipal lected
officials, providing a detailed understanding of anticipated inves ments into
tangible capital assets that are considered "priorities", along wit a
rationale.
"Environrnentally Sustainable Municipal Infrastructure (ES I)
Projects" means Municipal Infrastructure 'projects that:
i. improve the quality of the environment and contribute to red ced
greenhouse gas emissions, clean water, or clean air; and
ii.fall within the category of projects described in Section 4.1 h reto.
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"Eligible Costs" means those costs described in Schedule B attached
hereto, incurred in respect of Eligible Proje.cts.
"Eligible Projects" means Capacity Building Projects and ESMI Projects
as defined in Section 4.1 hereto.
"Eligible Recipient" means:
i. a Municipality or its duly authorized agent (including its wholly owned
corporation);
ii. a non-municipal entity, on the conditio", that the Municipality where the
proposed Eligible Project would be housed has indicated support for
the Eligible Project through a formal resolution of the municipal council.
A non-municipal entity includes:
· for-profit organizations or
· non-govemmental organizations, or
· not-for-profit organizations.
iii. Local Roads Boards and Local Services Boards in territory not within
the jurisdiction of a Municipality. .
Federal and provincial entities in the form of departments, corporations
and agencies are not eligible recipients.
"End of Funds" means March 31,2010.
"Event of Default" has the meaning given to it in Section 12.1 of this
Agreement.
"Fiscal Year" means the period beginning April 1 of a year and ending
March 31 of the following year.
"Funds" mean the Funds made available pursuant to this Agreement and
includes any interest earned on the said Funds.
"Infrastructure Program" means Canada's infrastructure programs in
existence at the time of the execution of this Agreement including: The
Canada Strategic Infrastructure Fund, The Border Infrastructure Fund,
The Municipal Rural Infrastructure Fund and The Infrastructure Canada
Program.
"Integrated Community Sustainability Plan" means a long-term plan,
developed in consultation with community members that provides direction
for the community to realize sustainability objectives, including
environmental, culture, social and economic objectives, as defined in
Schedule G.
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"Large Municipalities" means those Municipalities with a 200 National
Census data population of 500,000 or more including the Regi nal
Municipalities of Durham, Peel and York and the Cities of Missi sauga
and Ottawa.
"Lower Tier Municipality" means a municipality that forms pa of an
upper-tier Municipality for municipal purposes, as defined unde the
Municipal Act, 2001 (Ontario).
"Municipal Fiscal Year" means the period beginning January of a year
and ending December 31 of the same year.
"Municipal Infrastructure" means tangible capital assets in 0 tario
primarily for public use or benefit owned by the Recipient.
"Municipality" means every municipality as defined in the Mu icipal Act,
2001 (Ontario).
"Outcornes Report" means a written report prepared by the R cipient
which reports on the outputs and outcomes of the use of the F ds
according to Section 7.2 hereto.
"Oversight Committee" means the committee established to ~anage the
implementation of the Canada-Ontario-AMO-City of Toronto Ag eement
for the Transfer of Federal Gas Tax Revenues Under the New eal for
Cities and Communities. ,
"Parties" means AMO and the Recipient.
"Recipient" has the meaning given to it on the first page of this!
Agreement I
"Third Party" means any person, other than a party to this Ag~ement
that participates in the implementation of an Eligible Project. ,
"Upper Tier Municipality" means a Municipality of which two r more
lower-tier municipalities form part for municipal purposes, as de med
under the Municipal Act, 2001 (Ontario).
1.2. Interpretations:
Herein, etc. The words "herein", "hereof' and "hereunder" and oth r words of
similar import refer to this Agreement as a whole and not any parti lar
schedule, article, section, paragraph or other subdivision of this Ag eement.
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Currency. Any reference to currency is to Canadian currency and any
amount advanced, paid or calculated is to be advanced, paid or calculated in
Canadian currency.
Statutes. Any reference to a federal or provincial statute is to such statute
and to the regulations made pursuant to such statute as such statute and
regulations may at any time be amended or modified and in effect and to any
statute or regulations that may be passed that have the effect of
supplementing or superseding such statute or regulations.
Gender, singular, etc. Words importing the masculine gender include the
feminine or neuter gender and words in the singular include the plural, and
vice versa.
2. TERM OF AGREEMENT
2.1. Term. Subject to any extension or termination of this Agreement or the
survival of any of the provisions of this Agreement pursuant to the
provisions contained herein, this Agreement shall be in effect from the
date set out on the first page of this Agreement, up to and including
March 31, 2015.
2.2. Notice. Any Party may terminate this Agreement on two (2) years written
notice.
2.3. End of Funds. Notwithstanding anything in this Agreement and
regardless of the Eligible Project's state of completion, AMO shall not be
obligated to provide Funds under this Agreement after the End of Funds.
3. RECIPIENT REQUIREMENTS
3.1. The Recipient agrees to undertake and:
a. submit in writing to AMO for the local roads and bridges Eligible
Project category prior to spending the Funds the appropriate
documentation on the impact of such investments on sustainability
outcomes in the form in Schedule C of this Agreement hereto;
b. ensure that the Funds will result in net incremental capital spending
on Municipal Infrastructure;
c. ensure that there is no reduction in capital funding provided by
municipalities for Municipal Infrastructure. In the case of Recipients
that are Municipalities in excess of 100,000 in population, ensure
that over the period of April 1 , 2005 to March 31, 2010 the
Recipient's capital spending on Municipal Infrastructure will not fall
below its Base Amount, and,
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d. ensure any of its contracts for the supply of services or aterials to
implement its responsibilities under this Agreementwill e awarded
in a way that is transparent, competitive, consistent with alue for
money principles and pursuant to its adopted procureme t policy.
4. ELIGIBLE PROJECTS
4.1. Eligible Projects. ESMI Projects include the following:
a. Public transit, e.g.:
ì. Rapid Transit:.tangible capital assets and rolling stoc (includes
light rail, heavy rail additions, subways, ferries, transi. stations,
park and ride facilities, grade separated bus lanes an\:! rail
lines); i
ii. Transit Buses: bus rolling stock, transit bus stations; !
iii. Intelligent Transport System (ITS) and Transit Priori~ Capital
Investments;
iv. ITS technologies to improve transit priority signalling, 'passenger
and traffic information and transit operations;
v. Capital investments, such as transit queue-jumpers a d High
Occupancy Vehicle (HOV) lanes;
vi. Para transit: rolling stock, fixed capital assets and sy tems;
vii. Related capital infrastructure: bus-loading bays, road
rehabilitation for bus-only lanes;
viii. Active transportation infrastructure (e.g., bike lanes).
b. Water, e.g.:
Drinking water supply; drinking water purification and tre$tment
systems; drinkingwater distribution systems; water meteHng
systems.
c. Wastewater, e.g.: i
Wastewater systems including sanitary and combined sdv..er
systems; and separate storm water systems.
d. Solid waste, e.g.:
Waste diversion; material recovery facilities; organics m
collection depots; waste disposal landfills; thermal treat
landfill gas recupèration.
e. Community Energy Systems, e.g.:
Cogeneration or combined heat and power projects (wh re heat
and power are produced through a single process);
District heating and cooling projects where heat (or cooli g) is
distributed to morEl than one building.
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f. Local roads, bridges and tunnels, àctive transportation
infrastructure (e.g., bike lanes) that enhance sustainability
outcomes.
4.2. Exception. For Large Municipalities, the list of eligible categories will
consist of no more than two (2) of categories in Section 4.1 a. to e..
4.3. Capacity Building. All Recipients may also invest in Capacity Building
Projects including the following activities:
a. Collaboration: building partnerships and strategic alliances;
participation; and consultation and outreach;
b. Knowledge: use of new technology; research; and monitoring and
evaluation;
c. Integration: planning, policy development and implementation (e.g.,
environmental management systems, life cycle assessment).
4.4. Recipient fully responsible. The Recipient shall be fully responsible for
the complete, diligent and timely implementation and completion of the
Eligible Project, net of any Funds received.
4.5. Environmental Assessment. The Recipient shall comply with all
legislated environmental assessment requirements and agree that no
Funds will be committed to an Eligible Project until all environmental
assessment requirements have been satisfied including the
implementation of all mitigation measures identified in any environmental
assessment of the Eligible Project.
5. ELIGIBLE COSTS
5.1. Eligible Costs. In order for cost to be eligible for Funds pursuant to this
Agreement the cost must be in accordance with Schedule B.
5.2. Discretion of Canada. Subject to Section 5.1, the eligibility of any items
not listed in Schedule B to this Agreement is solely the discretion of
Canada.
5.3. Reasonable Access. The Recipient shall permit Canada reasonable
access to all records relating to all Eligible Projects that have received
Funds.
5.4. Retention of Receipts. The Recipient shall retain all evidence (such as
invoices, receipts, etc.) of payments related to Eligible Costs and such
supporting documentation must be available to Canada when requested
and maintained by the Recipient for audit purposes for at least three (3)
years after March 31, 2015.
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6. FUNDS
6.1. Allocation of Funds. AMO will allocate the Funds to Recipie ts on a per
capita basis with allocations made on a 50:50 basis to Upper 'er
Municipalities and Lower Tier Municipalities, where they exist.
6.2. Transfer of Funds. Where a Recipient decides to allocate Fu ds to
another Eligible Recipient it must be done by by-law. The by-I w must be
passed and submitted annually to AMO on or before March 31 t. The by-
law will identify the Eligible Recipient and the amount of Funds the
Eligible Recipient is receiving for that Municipal Fiscal Year.
a. Transfer of Funds Reporting. In the case of a Recipie t
transferring Funds in Section 6.2 of this Agreement the ecipient is
still required to submit an Annual Expenditure Report as er
Section 7.1 a., c and f. The Eligible Recipient is respons ble for all
other provisions of Section 7.1 and 7.2.
6.3. Use of Funds. The Recipient acknowledges and agrees the nds are
intended for and shall be used only for Eligible Costs in respect of Eligible
Projects.
6.4. Schedule of .payout of Funds. The Recipient has agreed tha all Funds
are to be transferred byAMO electronical.lY to the Recipient twi e yearly
on or before July 15th and November 151h. More specifically on the basis
set out in Schedule A.
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6.5. Use of Funds. The Recipient is permitted to carry over unexp~nded
Funds from the year received into subsequent years in a reserVe fund
account. The Recipient shall ensure:
a. Any investment of unexpended Funds be in accordance with
Ontario law and the Recipient's investment policy; and,
b. Any interest eamed on Funds be only applied to Eligible Costs on
Eligible Projects or to eligible administration costs on the basis set
out in Schedule B.
6.6. Funds advanced. If Funds advanced by AMO to the Recipie are not
paid by the Recipient in respect of Eligible Costs within three ( ) years
after the end of the year in which the advance payment was re eived,
AMO shall consult with the Recipient and. may elect to withhold further
payment of Funds on the basis set out in Schedule A hereto.
6.7. Expenditure of Funds. The Recipient shall expend all Funds y March
31,2012.
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6.8. GST. The use of Funds is based on tHe het-amount of goods and
services tax to be paid by the Recipient pursuant to the Excise Tax Act
(Canada), net of any applicable rebates.
6.9. Limit on Canada's Financial Commitments. The Recipient may use
Funds to pay up to one hundred percent (100%) of Eligible Costs of an
Eligible Project. However, if the Recipient is receiving money under an
Infrastructure Program in respect of an Eligible Project to which the
Recipient wishes to apply Funds, the maximum federal contribution
limitation set out in any Infrastructure Program contribution agreement
made in respect of that Eligible Project shall continue to apply.
6.10. Withholding Payment. AMO may withhold payment of Funds where
the Recipient is in default of compliance with any provisions of this
Agreement.
6.11.lnsufficient funds provided by Canada. If Canada does not provide
sufficient funds to continue the Funds for any Fiscal Year during which
this Agreement is in effect, AMO may terminate this Agreement in
accordance with the terms specified in Section 12.4 of this Agreement.
7. REPORTING REQUIREMENTS
7.1. Annual Expenditure Report. The Recipient shall report in the form in
Schedule D hereto due by March 31st following the Municipal Fiscal Year
on:
a. the amounts received from AMO under this Agreement in respect of
the previous Municipal Fiscal Year;
b. the amounts received from another Eligible Recipient,
c. the amounts transferred to another Eligible Recipient,
d. amounts paid by the Recipient in aggregate for Eligible Projects;
e. amounts held at year end by the Recipient in aggregate, including
interest, to pay for Eligible Projects;
f. indicate in a narrative the progress that the Recipient has made in
meeting its commitments and contributions;
g. a listing of all Eligible Projects that have been funded, indicating the
location, investment category, amount of Funds, nature of the
investment and expected outcomes, as identified in Schedule E;
and,
h. an annual Audit Statement prepared by the Recipient's auditor in
accordance with section 5815 of the Canadian Institute of
Chartered Accountants Handbook - Special Reports - Audit
Reports on Compliance With Agreements, Statutes and
Regulations, providing assurance that the terms of the Agreement
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have been adhered to. and Funds received by the Recipi nt have
been spent in accordance with the Agreement.
7.2. Outcomes Report. The Recipient shall account in writing for utcomes
achieved as a result of the Funds through an Outcomes Repo to be
submitted to AMO and to be made available publicly in manne
consistent with financial reporting under the Municipal Act, 200 S.O.
2001 c.25.
a. The Outcomes Report will report in writing on the cumul ive
investments made, in a manner to be provided by AMO, ncluding
information on the degree to which these investments ha e actually
contributed to the objectives of cleaner air, cleaner water and
reduced greenhouse gas emissions.
8. OTHER REQUIREMENTS
8.1. Capital Investment Plan. The Recipient acknowledges and a rees to
undertake and complete, prior to the end of the fourth year of t is
Agreement, a Capital Investment Plan.
8.2. Integrated Community Sustainability Plan. The Recipient
acknowledges and agrees that over the life of this Agreement t develop
or enhance an Integrated Community Sustainability Plan, eithe by itself
or as part of some higher level of agglomeration, as in Schedul G
hereto.
8.3. Public Sector Accounting Board. The Recipient acknowled
agrees that prior to March 31, 2010, the Recipient will adopt a
accounting rules of the Public Sector Accounting Board, in acc
with provincial regulations.
sand
use the
rdance
9. RECORDS AND AUDIT
9.1. Accounting Principles. All accounting terms not otherwise d fined
herein have the meanings assigned to them; all calculations wi I be made
and all financial data to be submitted will be prepared in accor ance with
generally accepted accounting principles (GAAP) in effect in 0 tario.
GAAP will include, without limitation, those principles approved or
recommended from timè to time by the Canadian Institute of C artered
Accountants or any successor institute, applied on a consisten basis.
9.2. Separate Records. Thè Recipient shall maintain separate rec rds and
documentation for the Funds and keep all records including in ices,
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statements, receipts and vouchers in respect of Eligible Projects that
Funds are paid in respect of for three (3) years after the March 31, 2015.
Upon reasonable notice, the Recipient shall submit all records and
documentation relating to the Funds to Canada for inspection or audit.
9.3. External Auditor. Canada may request, upon written notification and
AMO has agreed, to complete and provide to Canada an audit of Eligible
Project. AMO shall require the assistance of an external auditor to carry
out an audit of the material referred to in Section 9.2 of this Agreement. If
so, the Recipient shall, upon request, retain an external auditor
acceptable to Canada and AMO at the Recipient's sole expense. The
Recipient shall ensure that any auditor who conducts an audit pursuant to
this section of this Agreement or otherwise, provides a copy of the audit
report to AMO and Canada at the same time that the audit report is given
to the Recipient.
10. INSURANCE AND INDEMNITY
10.1.lnsurance. The Recipient shall put in effect and maintain in full force
and effect or cause to be put into effect and maintained for the period
during which this Agreement is in effect all the necessary insurance that
would be considered appropriate for a prudent Recipient of this type
undertaking a project similar to the Eligible Projects, including, where
appropriate and without limitation, property, construction and errors and
omissions insurance and identifies Canada and AMO as additional
insured for the purposes of the Eligible Projects only.
10.2. Certificates of Insurance. Throughout the term of this Agreement, the
Recipient shall provide AMO with a valid certificate of insurance that
confirms the requirements of Section 10.1.
1 0.3.AMO not liable. In no event shall Canada and AMO be liable for:
a. Any bodily injury, death or property damages to the Recipient, its
employees, agents or consultants or for any claim, demand or
action by any Third Party against the Recipient, its employees,
agents or consultants, arising out of or in any way related to this
Agreement; nor
b. Any incidental, indirect, special or consequential damages, or any
loss of use, revenue or profit to the Recipient, its employees,
agents or consultants arising out of any or in any way related to this
Agreement.
1 0.4. Recipient to Indemnify. The Recipient agrees to indemnify and hold
harmless Canada and AMO, its officers, servants, employees or agents,
from and against all claims and demands, loss, costs, damages, actions,
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suits or other proceedings by whomsoever brought or prosecut d in any
manner based upon, or occasioned by any injury to persons, d mage to
or loss or destruction of property, economic loss or infringeme t of rights
caused by or arising directly or indirectly from:
a. the Recipient's Eligible Projects;
b. the performance of this Agreementor the breach of any
condition of this Agreement by the Recipient, its officers,
employees and agents, or by a Third Party, its officers, e ployees,
or agents;
c. the performance of this Agreement or the breach of any
condition of this Agreement by the Recipient, its officers,
employees and agents, or by a Third Party, its officers, e ployees,
or agents.
d. the design, construction, operation, maintenance and re air of any
part of all Eligible Projects; and
e. any omission or other wilful or negligent act of the Indem ifier or
Third Party and thèir respective employees, officers, or tents.
10.5.Exception. Except to the extent to which such claims and de ands,
losses, costs, damages, actions, suits, or other proceedings re ated to the
act or negligence of an officer, employee, or agent of AMO in t e
performance of his or her duties.
11. TRANSFER AND OPERATION OF MUNICIPAL INFRASTRUCT RE
11.1. Retain Title. The Recipient shall retain title to, and ownershi of, the
Municipal Infrastructure resulting from the Eligible Project for a least ten
(10) years after the Eligible Project completion.
11.2.Repayment. Any time within ten (10) years from the date of ompletion
of the Eligible Project, the Recipient sells, leases, encumbers r
otherwise disposes of, directly or indirectly, any asset construc ed,
rehabilitated or improved, in whole or in part, with funds contri ,uted by
Canada under the terms of this Agreement, other than to CaniE1da,
Ontario, a Municipality, or a Crown corporation of Ontario that s the
latter's agent for the purpose of implementing this Agreement, he
Recipient shall repay Canada on demand, a proportionate am unt of the
funds contributed by Canada, as follows:
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Where Eligible Project asset is sold,
leased, encumbered or disposed of:
Repayment of
contribution
(in current dollars)
100%
Within 2 Years after Eligible Project
comoletion
Between 2 and 5 Years after Eligible Project
comoletion
Between 5 and 10 Years after Eligible
Proiect comoletion
55%
10%
11.3.Notice. The Recipient shall advise Canada and AMO in writing 120
days in advance and at any time during the ten (10) years following the
completion of an Eligible Project if any asset constructed, rehabilitated, or
improved in whole or in part with Funds is sold, discharged or alienated in
any way other than to Canada.
12. DEFAULT AND TERMINATION
12.1.Event of Default. AMO may declare in writing that an event of default
has occurred when the Recipient has not complied with any condition,
undertaking or material term in this Agreement. AMO will not declare in
writing that an event of default has occurred unless it has consulted with
the Recipient. Each and every one of the following events is a potential
"Event of Default:
a. Failure by the Recipient to deliver an Annual Expenditure Report,
Audit Report or the Outcomes Report.
b. Delivery of an Annual Expenditure Report or Audit Report that
discloses non-compliance with any condition, undertaking or
material term in this Agreement.
12.2. Waiver. AMO may withdraw Event of Default if the Recipient, within
thirty (30) days of receipt of the notice, either correct the condition or
event or demonstrate, to the satisfaction of AMO that it has taken such
steps as are necessary to correct the condition.
12.3.Remedies on default. If AMO declares that an Event of Default has
occurred, after thirty (30) days of declaration, it may immediately exercise
one of the following remedies:
a. In the case of default under Subsection 12.1 a., terminate or
suspend its obligation to pay the Funds. If AMO suspends payment,
it may pay suspended funds if AMO is satisfied that the default has
been cured.
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b. In the case of any other default, AMO will suspend its 0 igation to
pay Funds related to the event of default pending AMO'
satisfaction that the default has been cured.
13.CONFLlCT OF INTEREST
13.1. No conflict of interest. No member of the House of Comm ns, the
Senate of Canada, the Legislature of the Province of Ontario r AMO
Board of Directors will be admitted to any share or part of any ontract
made pursuant to this Agreement or to any benefit arising ther from.
14.NOTICE
14.1.Notice. Any notice, information or document provided for un er this
Agreement will be effectively given if delivered or sent by lette , postage
or other charges prepaid, or by facsimile or email. Any notice hat is
delivered will have been received on delivery; and any notice ailed shall
be deemed to have been received on the eighth (8) calendar ay
following the day on which it was mailed.
14.2.Representatives. The individuals identified in Section 14.3 f this
Agreement, in the first instance, act as AMO's or the Recipien 's, as the
case may be, representative for the purpose of implementing t is
Agreement.
14.3. Addresses for Notice. Further to Section 14.1 of this Agre ment,
notice can be given at the following addresses:
a. If to AMO:
Executive Director
Federal Gas Tax Agreement
Association of Municipalities of Ontario
393 University Avenue, Suite 1701
Toronto ON M5G 1E6
Telephone: (416) 971-9856
Facsimile: (416)971-6191
14
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b.
If to the Recipient
John de Rosenroll
CAO
Municipality of Kincardine
1475 Concession 5
R.R. # 5
Kincardine, ON N2Z 2X6
Telephone: (519) 368-3468
Facsimile: (519) 396-8288
15.MISCELLANEOUS
15.1.Severability. If for any reason a provision of this Agreement that is not
a fundamental term is found to be or becomes invalid or unenforceable, in
whole or in part, It will be deemed to be severable and will be deleted
from this Agreement, but all the other terms and conditions of this
Agreement will continue to be valid and enforceable.
15.2.No waiver. The failure of AMO to insist in one or more instances on
performance by the Recipient of any of the terms or conditions of this
Agreement shall not be construed as a waiver of AMO's right to require
further performance of any such terms or conditions, and the obligations
of the Recipient with respect to such performance shall continue in full
force and effect.
15.3.Governing Law. This Agreement shall be govemed by and construed
in accordance with the laws of the Province of Ontario and the laws of
Canada applicable in Ontario.
15.4.Survival. The following schedules, sections and provisions of this
Agreement shall survive the expiration or early termination hereof:
Sections 5, 7, 9.3, 10.4, 10.5. 11, 12.3, 15.7 and Schedule G .
15.5.AMO and Recipient independent. Nothing in this Agreement and no
action by the Parties will establish or be deemed to establish a
partnership, joint venture, principal-agent relationship, or employer-
employee relationship in any way or for any purpose with Canada or AMO
whatsoever.
15.6.No Authority to Represent. Nothing in this Agreement is to be
construed as authorizing one Party to contract for or to incur any
obligation on behalf of the other or to act as agent for the other. Nothing
in this Agreement is to be construed as authorizing any Recipient or any
15
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Third Party to contract for or to incur any obligation on behalf 0 either
Party or to act as agenUor either Party.
15.7.Debts Due to AMO. Any amount owed to Canada under this
Agreementwill constitute a debt due to AMO, which the Recipi ntwill
reimburse forthwith, on demand, to AMO.
15.8.Priority. In the event of a conflict, the part of this Agreement hat
precedes the signature of the Parties will take precedence ove the
Schedules.
16. SCHEDULES
16.1. This Agreement, including:
Schedule A
Schedule B
Schedule C
Schedule D
Schedule E
Schedule F
Schedule G
Schedule ofE.und Payments
Eligible Costs
Impact of Investment on Sustainability Out omes for
Local Roads and Bridges
Annual Expenditure Report
Outcome Indicators
Communications
Integrated Community Sustainability Plans
constitute the entire agreement between the Parties with respect to
the subject matter contained in this Agreement and sup rsedes all
prior oral or writt~n representations and agreements.
16
17.SIGNATURES
IN WITNESS WHEREOF, AMO and the Recipient have respectively executed,
sealed and delivered this Agreement on the date set out on the front page.
RECIPIENT'S NAME:
By:
Municipality of Kincardine
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~_.,.- t·....· Name~ Glenn R. Sutton
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Title: Chief Administrative Officer
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THE ASSOCIATION OF MUNICIPALITIES OF ONTARIO
By:
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Name: Pat Vanini
Title: Executive Director
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ame: Nancy Plu
itle: Director of ministration
and Business Development
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SCHEDULE A
SCHEDULE OF FUND PAYMENTS
RECIPIENTS NAME: Municipality of Kincardine
The follo\Ootng represents the minimum Funds and schedule of p ems
oVer the life of this Agreement.
July 15th
Schedule of Fund Payments
November 15
Year
2005
2006
2007
2008
2009
$53,764.62
$71,678.16
$89,591.70
$179,183.40
18
$107.529.
$53,764.
$71,678.16
$89,591.7P
$179,183.
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SCHEDULE B
ELIGIBLE COSTS
Eligible Project Costs
1. Eligible Costs are all direct costs which are in Canada's opinion:
a. properly and reasonably incurred and paid by the Recipient and no
other person; and
b. paid under a contract for goods and services necessary for the
implementation of an Eligible Project.
2. Eligible costs may include only the following:
a. the capital costs of acquiring, constructing, renovating or rehabilitating
a tangible capital asset and any debt financing charges related thereto;
b. the fees paid to professionals, technical personnel, consultants and
contractors specifically engaged to undertake the surveying, design,
engineering, manufacturing or construction of a project infrastructure
asset and related facilities and structures;
c. the costs of environmental assessments, monitoring, and follow-up
programs as required by the Canadian Environmental Assessment Act,
or a provincial equivalent;
d. the costs related to strengthening the ability of municipalities to
enhance or develop Integrated Community Sustainability Plans.
3. Employee and Equipment Costs
a. In the case of Recipients that are remote municipalities the out of
pocket costs (not overhead) related to employees or equipment may
be included in its Eligible Costs under the following conditions:
i. the Recipient has determined that it is not economically feasible
to tender a contract;
ii. employees or equipment are employed directly in respect of the
work that would have been the subject of the contract; and
iii. the arrangement is approved in advance and in writing by the
Oversight Committee.
4. Administration Costs
a. That portion of Funds representing interest earned may be used to pay
for administration costs related to the implementation of the
Agreement.
Ineligible Project Costs
5. Costs related to the following items are ineligible costs:
a. Eligible Project costs incurred before Äpril1st, 2005;
b. services or works that are normally provided by the Recipient or a
related party;
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c. salaries and other employment benefits of any employees 0 the
Recipient or related party except ¡IS indicated in Section 3 0 Schedule
B above;
d. a Recipient's overhead costs, its direct or indirect operating r
administrative costs, and more specifically its costs related t planning,
engineering, architecture, supervision, management and oth r
activities normally carried out by its applicant's staff;
e. costs of feasibility and planning studies for individual Eligibl Projects;
f. taxes for which the Recipient is eNgible for a tax rebate and II other
costs eligible for rebates;
g. costs of land or any interest therein, and related costs;
h. cost of leasing of equipment by the Recipient except for as i~dicated in
Section 3 of Schedule B above; .
i. routine repair and maintenance costs;
j. legal fees;
k. administrative costs incurred by the Recipient as a result of
implementing this Agreement, subject to Section 4 of Sched Ie B
above; and
I. audit and evaluation costs.
-.
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SCHEDULE C
IMPACT OF INVESTMENT ON SUSTAINABILlTY OUTCOMES FOR LOCAL
ROADS AND BRIDGES
PROJECT DOCUMENTATION
Municipal Name
Municipal Contact Name:
Position:
Municipal mailing address:
Telephone number:
Fax number:
e-mail:
Project Description (type of
project (i.e. road resurfacing, road
or structure rehabilitation, road
drainage improvements, traffic
signal installation, installation of
turninc lanes))
Project Location (road name,
bridge name, start & end point, lot
& concession - attach key plan if
available)
Project Rationale (benefits and
beneficiaries)
Outputs (describe which of the
OUtDUts are met bv this Droiect )
Other Benefits (if the project
benefits are not included in the list
of outputs defined in this
Schedule C, provide the rationale
and the outcomes for the project-
i.e. describe how the project will
contribute to cleaner air, cleaner
water, reduced greenhouse gas
emissions. )
Estimated Proiect Cost
Expected Outcomes-Outputs
(provide measurements of the
outputs)
Notes:
1. This Schedule must be completed in accordance to instructions provided in "Transfer of
Federal Gas Tax Revenues Under the New Deal for Cities and Communities Municipal
Funding Agreement Gùide" which will be updated once "output measures" and "outcome
measures" contained in Schedule E of this Agreement have been developed, and
approved by the Oversight Committee.
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2. Projects using Funds must foUow the requirements of this Agreement as out ned in
Schedule C hereto and are subject to audit.
3. Recipients are responsible for reporting on Eligible Project outcomes set out Schedule E
of this Agreement and subject to Section 7.2 of this Agreement.
Outcomes and Outputs:
1. Pro'ects involvin the restoration and rehabilitation of existi assets
,
in order to extend the asset lifespan bv several years i.e. restjrfacing
existing roadways and structure rehabilitation.
2. ro"ects incor oratin si nificant antities of rec cled and ec imed
materials i.e. cold-in-place pavement recycling, expanded aspha t recycling
and granular base reclamation.
3. Pro"ects which si nif! ntlreduce travel times and distanc s i.e. new
roads and bridges that reduce congestion, increasing travel speeds on the
road network, create travel time savings and minimize travel distànces.
4. Installation of turnina lanes i.e. construction of left turn lanes, r ht turn
lanes, left turn slip around lanes, and right turn tapers.
5. Traffic si nal installation traffic si nal u radin and traffic
ordination proiect Le.installation of new traffic signals, upgradi g traffic
signal installations, and projects to co-ordinate the timing of traffi signals in
urban areas.
Note: If the Eligible Project is not one of the above outputs, the Reci ient must
provide the rationale for including the Eligible Project including how th Eligible
Project will achieve the outcomes of cleaner air, cleaner water, and duced
greenhouse gases and how the outcomes will be met.
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SCHEDULE D
ANNUAL EXPENDITURE REPORT
23
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SCHEDULE D
ANNUAL EXPENDITURE REPORT (cont'd)
';
PROGRESS REPORT:
PROJECT DETAILS:
Le. Project title, location, investment category, amount of Funds, nature of the inve tment and
expected outcomes.
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SCHEDULE E
OUTCOME INDICA TORS
The impact of the use of the Funds will be measured through a set of core
indicators, to be developed by the Oversight Committee and linked to the
following outcomes and outputs:
Outcomes:
a) Cleaner Air: [DETERMINE INDICA TOR]
b) Cleaner Water: [DETERMINE INDICA TOR]
c) Lower Greenhouse Gas Emissions (GHGs): [DETERMINE
INDICA TOR]
Outputs:
a) Community Energy Systems: [DETERMINE INDICA TOR]
b) Public Transit Infrastructure: [DETERMINE INDICA TOR]
c) Water Infrastructure: [DETERMINE INDICA TOR]
d) Wastewater Infrastructure: [DETERMINE INDICA TOR]
e) Changes in effluent quality [DETERMINE INDICA TOR]
f) Solid waste: [DETERMINE INDICA TOR]
g) Local Roads and Bridges: [DETERMINE INDICA TOR]
h) Capacity Building: [DETERMINE INDICA TOR]
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SCHEDULE F
COMMUNICATIONS
.
The Recipient shall:
a. ensure all communications by the Recipient referring
funded under this Agreement will clearly recognize C
investments;
b. ensure permanent signage at the location of projects
investments under this Agreement, prominently identi ing the
Government of Canada's investment and including th~ Canada
wordmark. W~re there is no fixed location for signa ,such as
a transit vehicle, a prominent marker will recognize th
Government of Canada's contribution. All signage/pl ues will
be located in such a way as to be clearly visible to us rs, visitors
and/or passersby;
c. regularly report to the public on the outcomes of the i estments
entered into under this Agreement, including through the
Outcomes Reports described in this Agreement,
d. ensure the timing of public events shall be sufficient to allow for
aU orders of government to plan their involvement. Te
Recipient shall provide a minimum of 21 days notice an event
or announcement;
e. unless otherwise arranged, the Recipient shall pay th ir own
costs associated with their communications activities;
f. receive appropriate recognition in communications m terials;
and,
g. joint communications material and signage will reflect
Government of Canada communications policy, inclu ing the
Official Languages Act (Canada), and federal-provinc I/territorial
identity graphics guidelines.
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SCHEDULE G
INTEGRA TED COMMUNITY SUSTAINABILlTY PLANS
Municipalities in Ontario operate with a sophisticated and comprehensive
statutory and regulatory framework and are accountable to their residents for all
aspects of municipal policy making, including operations and capital investment
activities.
Ontario has demonstrated its leadership in sustainability planning through its
well-established land-use planning and initiatives to protect the environment and
provide safe drinking water in Ontario.
Municipalities, through their Official Plans, under the Ontario Planning Act, strive
to reflect environmental objectives which are implemented through their
municipal planning decisions, municipal capital plans, strategic plans and
sustainability plans. As such, Municipalities have demonstrated their
commitment to sustainability.
The purpose of the Integrated Community Sustainability Plan is to enhance or
build upon existing planning instruments and processes.
Over the life of this Agreement, Recipients will be required to demonstrate
through existing planning instruments and. processes or through the creation of
new planning document that the Municipality has:
· a co-ordinated approach to community sustainability (e.g., linkages of various
plans, planning and financial tools that contribute to sustainability objectives);
· reflected and integrated social, cultural, environmental and economic
sustainability objectives in community planning;
· collaborated with other Municipalities where appropriate to achieve
sustainability objectives; and,
· engaged residents in determining a long-term vision for the Municipality.
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