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Home My WebLink About02 014 agree OSTAR capital e e e - I , , I I THE CORPORATION OF THE MUNICIPALITY OF KINC1mINE i , i I I " I I A BY ·LAW TO AUTHORIZE THE SIGNIN OF A LETTER OF AGREEMENT WITH HER MAJESTY HE QUEEN IN RIGHT OF ONTARIO REPRESENTED BY THE MI ISTER OF AGRICULTURE, FOOD AND RURAL AFFAIRS ( MAFRA) "CAPITAL WORKS" BY-LAW NO. 2002 - 14 , 'I , I WHEREAS the Council for The Municipality of Kincardine de~s it advisable to enter into an Agreement with her Majesty the Queen in Ri ht of Ontario as represented by the Minister of Agriculture, Food and Rural A irs (OMFRA) as part of its participation in the Ontario Small Town and Rural (OSTAR) Infrastructure initiative; : I AND WHEREAS OMAFRA is prepared to provide to the Cørporation of the Municipality of Kincardine financial assistance in the sum of ~70,679.97 under the OSTAR Infrastructure initiative; i AND WHEREAS interim funding in the amount of 50% of the p vincial share for Option 1 Round 1 projects of the OST AR Infrastructure init atives has been confirmed; NOW THEREFORE the Council for The Corporation of th, Municipality of Kincardine ENACTS as follows: : I 1. That the Corporation of the Municipality of Kincardine enter i~to an agreement with Her Majesty the Queen in Right of Ontario as represent~d by the Minister of Agriculture, Food and Rural Affairs. 1 I 2. That the Mayor and CAO be authorized to sign, on behalf of The Corporation of the Municipality of Kincardine, the Letter of Agreement wit Her Majesty the Queen in Right of Ontario as represented by the Minister of gricultural, Food and Rural Affairs, attached to this by-law as Schedule "A" and to affix the corporate seal as and when required. I I 3. This By-law shall come into full force and effect upon its final passage. 4. This By-law may be cited as the "OSTAR Infrastructure Agre ment By-law". READ a FIRST, SECOND and THIRD time and DEEMED TO B PASSED this 13th day of February, 2002. - ....-I- _.~,'-""-- .' 'Y . ~ . Minister of Agriculture, Food and Rural Affairs January 17, 2002 Mr. John deRosemoll CAO The Municipality of Kincardine 707 Queen St. Kincardine, ON N2Z lZ9 Dear Mr. deRosemoll: ~ Ontario Queen's Park, Ontario M5S 183 Ministre de l'Agriculture, de I' Alimentation et des Affaires rurales Our File No.: 6292 RE: Letter of Agreement - OST AR Infrastructure initiative Further to your participation in the Ontario Small Town and Rural (OST AR) Infrastructure initiative (the "initiative"), HER MAJESTY THE QUEEN in RIGHT of ONTARIO, as represented by the Minister of Agriculture, Food and Rural Affairs (the "Ministry"), is prepared to provide the Corporation of The Municipality of Kincardine (the "Municipality"), the sum of $70,679.97 (the "Financial Assistance") subject to the following terms and conditions: 1) Tbe Financial Assistance is to be used by the Municipality only for the purposes of the initiative and for works of a capital nature that are related directly and exclusively to the initiative. 2) Expenditure of the Financial Assistance shall be properly accounted for in accordance with Generally Accepted Accounting Principles (GAAP) and all books and records in relation thereto shall be available for inspection by the Ministry upon reasonable notice. . 3) Prior to the advance of the Financial Assistance, the Municipality shall provide the Ministry with an indemnity and proof of insurance as outlined below. The Municipality agrees that a) in no event shall the Ministry be liable for: Letter of Agreement - OST AR Infrastructure initiative Page lof4 t' . &1 I , I , . i) any bodily injury, death or property damage to the Municipality, 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 letter of agreement or the initiative; or ü) any incidental, indirect, special or consequential damages, or any loss of use, revenue or profit to the Municipality, its employees, agents, or consultants arising out of or in any way related to this letter of agreement or the initiative. b) The Municipality agrees to indemnify and hold harmless Her Majesty the Queen in Right of Ontario, Her directors, officers, employees and agents from and against all suits, judgements, claims, demands, expenses actions, causes of action and losses (including, without limitation, reasonable legal expenses and any claim for lien made pursuant to the Construction Lien Ad (Ontario» and for any and all1iability for damages to property and injury to persons (including death) howsoever caused, as a result of any claim, demand or action arising out of or in any way related to this letter of agreement or the initiative. c) The Municipality further agrees to ind"",,,nify and hold harmless Her Majesty the Queen in right of Ontario, Her directors, officers, employees and agents, for any incidental, indirect, special or consequential damages, or any loss of use, revenue or profit, by any person, entity or orgllni7J1rion, including the Ministry, arising out of or in any way related to this letter of agreement or the initiative. 4) The Municipality shall put in effect and maintain in full force and effect or cause to be put into effect and maintained for the period for which monies are advanced under this letter of agreement, with insurers acceptable to the Ministry, all the necessary insurance that would be considered appropriate for a prudent municipality of this type initiative, without limitation: a) Comprehensive General Liability Insurance to an inclusive limit of not less than five million dollars ($5,000,000) per occurrence for property, damage, bodily injury and personal injury including, at least, the following policy endorsements: i) Her Majesty the Queen in right of Ontario as an additional insured for the purposes of the initiative only: Cross Liability; Contractual Liability; Independent Contractors; Products and Completed Operations; Employer's Liability and Voluntary Compensation; 30 day written notice of cancellation; Tenants Legal Liability (if applicable); and Non-owned automobile coverage with blanket contractual and physical damage coverage for Hired Automobiles. ii) Property insurance to a limit commensurate to the full replacement cost value of the asset on an "All Risks" basis including earthquake and flood. The policy must include the following: Replacement Cost Value; Stated Amount Co- Insurance; and Waiver of Subrogation. Letter of Agreement - OST AR Infrastructure iniûaûve Page2of4 .. I , .i -I I I . I ¡ -I iü) Professional/Consultants Errors & Omissions Liability Insurance, insuring liability for errors and omissions in the performance or failure to perform professional services contemplated for which monies are advanced under this letter of agreement, in the amount of not less than two million dollars ($2,000,000) per claim and in the annual aggregate. 5) Prior to any Financial Assistance being provided under this letter of agreement and throughout the term of for which monies are advanced under this letter of agreement, the Municipality shall provide the Ministry with a valid Certificate of Insurance that references the initiative, confirms the above requirements and identifies major exclusions in the policy. 6) The Municipality shall provide the Ministry a copy of the policy and any renewal or replacement certificates as may be necessary. 7) The Municipality shall put in effect and rna;nttlÌß in full force and effect or cause to be put into effect and maintained in full force and effect during the term of for which monies are adv~ under this letter of agreement: a) a performance bond in the amount of 100 % of the contract price for any contract for the construction of the asset covering the performance of that construction contract and the correction of any deficiencies; and b) a labour and material payment bond in the amount of 50% of the contract price for any contract for the construction of the asset covering the payment for labour, material or both. 8) If the Municipality and the Ministry do not enter into an agreement satisfactory to the Ministry under the Initiative within 90 days from the receipt by the Municipality of the OST AR Infrastructure Initiative Round 1 Funding Agreement for Infrastructure Projects, the advanced funds shall be forthwith returned to the Ministry with interest at the then current interest rate charged by the Province of Ontario on accounts receivable. 9) The Financial Assistance advanced pursuant to this letter of agreement shall be set off against advances of funds under the agreement contemplated in paragraph 8. 10) The Financial Assistance advanced pursuant to this letter of agreement shall be subject to the usual 10% holdback applicable to other OSTAR payments, payable upon proof of completion of the initiative. 11) This letter of agreement shall not obligate the Ministry to advance any funds hereunder or to advance any funds pursuant to the agreement contemplated by paragraph 8 and is not intended to form any legal relationship between the parties, unless accepted by the Municipality and thereupon, limited to the terms hereof. Letter of Agreement - OST AR Infrastructure initiaûve Page 3 of4 -, ." . a . If your Municipality agrees to the foregoing, please execute this letter below where indicated and return it to the undersigned together with the Certificate of Insurance by March 1, 2002. Sincerely, .~ The undersigned on behalf of the Corporation of The Municipality of Kincardine, do acknowledge that the Municipality has agreed to the aforesaid terms and conditions of this letter and that we are properly authorized according to the by-laws of the Municipality to provide this acknowledgement, indemnity and acceptance. ~ \J.- ~2~ Name: r .f\. 0 Title: L.- r\ ("I d dJ) /"i. dO~ - Seal Date on behalf of The Municipality of Kincardine 11 ciJtLÅJ /d. dDO~ Seal Date on behalf of The Municipality of Kincardine Letter of Agreement - OST AR Infrastructure initiative Page 4 of4