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HomeMy WebLinkAboutFND-019-08 Cl~iJlgron REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MONDAY SEPTEMBER 22nd, 2008 Resolution #:G pfJ -j n-dj) Date: Report #: FND-019-08 File#: By-law #: Subject: AGGREGATE RESOURCE ACT Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-019-08 be received for information. Rov;ewed .,,~~ franklin Wu, Chief Administrative Officer. NT/LB/hjl REPORT NO.: FND-019-08 PAGE 2 INTRODUCTION: At the October 15, 2007 Council meeting, Council requested the Director of FinancefTreasurer to report back to the General Purpose and Administration Committee meeting regarding the aggregate fee structure and possibly increasing the fee. BACKGROUND: The Aggregates Resources Act replaced the Pits and Quarries Control Act effective January 1, 1990. It is the Ministry of Natural Resources' responsibility to manage Ontario's aggregate resources. During 1997, in an effort to better focus Ministry staff on delivery of core programs, the Aggregates Resources Act, R.S.O. 1990, Chap. A.B, was amended and gave the Minister the power to create the Aggregate Resources Trust and to appoint a trustee to look after its affairs. In 1997, The Ontario Aggregates Resources Corporation (TOARC) was incorporated to act as the trustee of the Aggregate Resources Trust. The purposes of the Trust include the following: . The rehabilitation of land for which a Licence or Permit has been revoked and for which final rehabilitation has not been completed; . The rehabilitation of abandoned pits and quarries, including surveys and studies respecting their location and condition; . Research on aggregate resources management, including rehabilitation; . Payments to the Crown in right of Ontario and to regional municipalities, counties and local municipalities in accordance with regulations made pursuant to the Act; . The management of the Abandoned Pits and Quarries Rehabilitation Fund; . The education and training of persons engaged in or interested in the management of the aggregate resources of Ontario, the operation of pits or quarries, or the rehabilitation of land from which aggregate has been excavated; . The gathering, publishing and dissemination of information relating to the management of the aggregate resources of Ontario, the control and regulation of aggregate operations and the rehabilitation of land from which aggregate has been excavated. The Ministry of Natural Resources main mission remains as follows: . To protect the provincial interest in aggregate resources and develop, maintain and enforce appropriate technical standards. . To provide leadership in the development of partnerships with key stakeholders for the effective management of aggregate resources to benefit the people of Ontario. .1 REPORT NO.: FND-019-08 PAGE 3 The Ministry of Natural Resources have core program staff responsible for the standards and policy development, program design and coordination, evaluation and monitoring for the Aggregate Resources Program. The province of Ontario is divided into many districts and an Aggregate Officer from the Ministry of Natural Resources is assigned to each district and is responsible for the acceptance of applications and leads in dealing with compliance of the Aggregates Resources Act. For example: That a licenced pit operator is performing progressive rehabilitation. Progressive rehabilitation is sequential rehabilitation of the pit or quarry by the aggregate producer. STATISTICAL: Per the 2006 Statistical Update prepared by The Ontario Aggregates Resources Corporation (TOARC), Clarington was number 6 on the list of the Top Ten Producing Municipalities for the Tonnes Extracted. Please refer to Attachment "A ". On an annual basis, The Ontario Aggregates Resources Corporation (TOARC) sends a cheque to the Municipality representing our share of the licence fees collected from the aggregate producers. The amount of the cheque is based on the aggregate production and/or minimum fee collected in the previous year. Annual aggregate licence fee paid to Clarington: 2008 not available yet 2007 $202,335 2006 $231,616 2005 $213,731 2004 $223,352 2003 $187,928 2002 $218,857 AGGREGATE FEE STRUCTURE: After several consultations with the aggregate stakeholders and lobbying by Ontario municipalities and AMO over a long period of time, the Minister of Natural Resources increased the fee per tonne and designated new geographic areas in eastern and northern Ontario to be covered under the Aggregate Resources Act. REPORT NO.: FND-019-08 PAGE 4 During 2006, the Ministry of Natural Resources increased the fees collected from the aggregate producers effective January 1, 2007 from $0.06 per tonne to $0.115 per tonne which will be distributed in 2008 as follows: DollarsfTonne New Fee Old Fee Lower tier municipalities .060 Upper tier municipalities .015 The Crown (Province) .035 Abandoned Pit & Quarry Rehabilitation Fund (MAAP) .005 .040 .005 .010 .005 The Municipality of Clarington should receive its 2007 licence fee at the new fee of 0.06 cents per tonne in the fall of 2008 from The Ontario Aggregates Resources Corporation (TOARC). Attachments: Attachment "A" - Licence Production in 2006 for Top Ten Producing Municipalities 'I :11 il CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169 Attachment "A" LICENCE PRODUCTION IN 2006 THE TOP TEN PRODUCING MUNICIPALITIES (Rounded to nearest million tonnes) 2006 Production Municipality County/Region Production 2005 2004 2003 2002 2001 1 City of Ottawa(1) City of Ottawa 11.1 10.6 9.9 10.0 10.7 10.1 2 City of Kawartha Lakes(2) City of Kawartha Lakes 6.5 6.8 6.8 6.7 6.4 6.4 3 City of Hamilton(3) City of Hamilton 6.2 5.6 6.3 5.9 5.4 6.0 4 Township of Uxbridge Durham 5.4 5.3 5.5 4.9 4.7 5.0 5 Town of Caledon Peel 5.3 5.1 5.3 4.5 4.3 4.9 6 Municipality of Clarington Durham 5.0 5.8 5.3 5.6 4.7 4.7 7 Township of North Dumfries Waterloo 5.0 4.1 4.4 3.9 3.3 3.7 8 Puslinch Township Wellington County 4.7 5.0 5.2 5.1 5.3 5.5 9 Town of Milton Halton 4.6 5.0 5.6 5.2 5.9 8.8 10 Township of Zorra Oxford 3.9 3.9 3.6 3.5 3.4 3.5 Total 57.7 57.2 57.9 55.3 54. 1 58.6 Note: Municipalities are ranked in order of their licenced production for 2006 Production statistics for 2001 include tonnage of the pre-amalgamated cites and townships of: (1) Cities of Ottawa, Gloucester and Neapean, Townships of Cumberland, Goulborn, Osgoode, Rideau and West Carleton (2) Townships of Baxley, Laxton, Digby & Langford, Bobcaygeon, Carden/Dalton, Eldon, Emily, Fenelon, Manvers, Mariposa, Somerville (3) Cities of Hamilton and Stoney Creek, Towns of Ancaster, Dundas and Glanbrook 13