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Home My WebLink AboutWD-39-96THS CORPORATION OF TH8 MUNICIPALITY OF CLARINGTON XXXsS~l~Ri~i~'![ftk7d3~XT~P~hf~kft~Fiti~}MEi19t~f3H~CXX REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# Date: November 18, 1996 Res.# -575-9. BY-Law # Report #: -~-3-3-gfr File #: Subject: MINISTRY OF FISHERIES AND OCEANS LEASE AGREEMENT GRAHAM AND BOWMANVILLE CREEK HARBOUR MOUTH3 Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report WD-39-96 be received;. 2. THAT the proposed Two Year Lease Agreement from the Ministry of Fisheries and Oceans not be approved; 3. THAT Council adopt the following as their official position: a) That the Municipality is not prepared to assume responsibility for the Graham Creek breakwalls (Bondhead) in isolation from the Bowmanville Creek breakwalls; b) That the approaches to all the breakwalls must be in public ownership in sufficient amount to be meaningful and useable; and c) That discussion occur on financial arrangements to fully or partially offset future maintenance expenditures; 4. THAT staff be authorized to enter into discussions with the staff from the Ministry of Fisheries and Oceans; and ~~2~ o.o. °° ® at~,~,. REPORT NO.: T4D-39-96 PAGE 2 5. THAT the Ministry of Fisheries and Oceans, and the member municipalities of the Region of Durham be advised of Council's decision. REPORT 1.0 ATTACHMENTS No. 1: Key Map No. 2: Letter, dated January 31, 1996, to Ms. Patti Barrie from D. G. Blanchard, Acting Regional Director, Small Craft Harbours Branch, Central and Arctic Region, Ministry of Fisheries and Oceans, regarding launching ramp partial encroachment and small craft harbour facilities, Newcastle, Ontario, Management Agreement 9010 00 002 (Town of Newcastle). No. 3: Letter, dated September 11, 199 6, to W.H. Stockwell from D. G. Blanchard, Acting Regional Director, Small Craft Harbours Branch, Central and Arctic Region, Ministry of Fisheries and Oceans, regarding Small Craft Harbour Facility - Newcastle 2.0 BACKGROUND 2.1 In 1991 the Municipality entered into a lease agreement with the Ministry of Fisheries and Oceans to accommodate the boat launching ramp, docking and park amenities partially located on Ministry lands, as associated with Bondhead Parkette. The annual fee for the lease, which expired on October 1, 1995, was One Hundred Dollars ($100), plus G.S.T. 2.2 D. G. Blanchard, in a letter dated January 31, 1996 (Attachment No. 2), advised that a new two year lease is required to be renewed. The proposed lease agreement would run from October 1, 1995 to September 30, 1997. ~~2~ REPORT NO.: WD-39-96 PAGE 3 The first renewal would be kept at its previous rate of $107, inclusive of G.S.T.,-and the second and final year renewal, inclusive of G.S.T., would increase to $535. In his letter, Mr. Blanchard advised that the Ministry of Fisheries and Oceans has recently reviewed their involvement with recreational harbours and will, at the end of the lease agreement, be divesting themselves of this function through the sale of their holdings. Mr. Blanchard suggests that the Municipality should consider a strategy now to acquire their interest in two (2) years time. Mr. Blanchard also suggested in his letter that, should no party accept the responsibility to acquire and maintain the harbour entrance, the Ministry may dismantle it. 2.3 In a further letter, dated September 11, 1996 (Attachment No. 3), D. G. Blanchard states that, in lieu of a two year lease and the later sale of the property, the Ministry of Fisheries and Oceans would be prepared to consider the transfer to the Municipality of the facilities now for the consideration of One Dollar ($1), plus other financial considerations and conditions in the Ministry's favour. 4.0 REVIEW AND COMMENT 4.1 The Ministry of Fisheries and Oceans is faced with severe budget limitations and is proposing to download its responsibilities. The proposed 500 increase in the annual fee is considered to be excessive. This opinion was expressed to the Ministry staff, .during several recent telephone conversations, concerning the Ministry's disposition and the Municipality's interest in both Graham Creek and Bowmanville Creek harbour mouths. 3122 REPORT NO.: BPD-39-96 PAGE 4 While the Ministry's present correspondence deals with the Graham Creek entrance, the Ministry's concerns are to divest itself of both harbours. The Ministry's present proposal is for only Graham Creek, which may be the easier of the two to resolve. Municipal staff feels that it is important to tie the solution of both together as a package. To arrive at an agreement and provide service for one location and not the other may bring pressure from outside interests for a similar but less acceptable agreement. 4.2 It was expressed to the Ministry staff that the Municipality's interest in these two (2) harbour mouths might be limited or non-existent for the following reasons: a) The two (2) harbour entrances primarily serve private marinas which, at present, contribute nothing to their respective harbour entrance upkeep. b) Access to three of the four breakwall structures is across private property; Port Darlington Harbour Commission in Bowmanville, and the Kaitlin Group in Newcastle. Port Darlington Harbour Commission has indicated that the public will continue to be denied access in Bowmanville. Also, the Kaitlin Group could potentially deny future public access on the west side of Graham Creek in Newcastle. c) Transfer of the two facilities to the Municipality includes the upkeep of the breakwalls and navigational aids. Failure to maintain those facilities could leave the municipality liable for damages to life and/or property. 1123 REPORT NO.: WD-39-96 PAGE 5 d) Damage to the breakwalls is not infrequent. In 1993 the east breakwall at Graham Creek suffered extensive damage following high water in Lake Ontario coupled with several seasonal storms. It resulted in the Ministry hiring a contractor to correct the costly damage. e) The Ministry has made no proposal to secure and transfer ownership of the approaches to the three breakwalls to achieve the Ministry statement in Attachment 3, that "the Municipality operates the facility as a public access point." Municipal staff is of the opinion that, if the Ministry can guarantee public access to the properties in question, then assumption of the facilities is worth consideration and it is worthwhile entering into negotiations with the Ministry of Fisheries .and Oceans. f) The Ministry has made no proposal to set up a trust, provide a grant, or other acceptable arrangement to fully or partially finance future maintenance. 4.3 While the Municipality recognizes the potential .for these breakwalls as a focal point for the waterfront, as well as the recreational opportunity provided to fish, paint landscapes, or passively watch the boats go by, the Municipality is experiencing its own budget problems and cannot accept new ventures without negatively affecting existing responsibilities. The breakwalls are a financial liability and a potential legal liability. Recognizing this, it is staff's opinion that the Ministry's present proposal is unsatisfactory. 4.4 The Federal Government has paid for the operating costs of this Ministry through various taxes and other general sources 9 ~~ REPORT NO.: WD-39-96 PAGE 6 of revenue. While they are proposing to divest themselves from further expenditures, they have retained their sources of income and do not presently propose to transfer any funds with the responsibility. 4.5 A telephone. canvasing of other municipalities, i.e. Pickering, Ajax, Whitby and Oshawa, indicates that none of these municipalities have similar situations or have been approached by the Ministry with a similar proposal. Respectfully submitted, Step eh n A. Vokes, P.Eng. Director of Public works Reviewed by, f ~J W. H. Stockwell Chief Administrative Officer JDC*ph November 13, 1996 Attachments Ministry of Fisheries and Oceans P.O. Box 85120 3027 Harvester Road Burlington, ON., L7R 4K3 City of Oshawa 50 Centre Street South Oshawa, ON L1H 3Z7 Town of Pickering One The Esplanade Pickering, ON L1V 6K7 Town of Whitby 575 Roseland Road East Whitby, ON L1N 2MB Town of Ajax 65 Harwood Avenue Ajax, ON L1S 2H9 ~32~ II ~; ~'J ~ ~ A ~s a~~a~y ~~r) ,~ ~~ ~ ~ W ~ ®~ ~f ~` J~L~®JL 7L~~~~® ~}noS.13I, ~~~~®n~fl' Q ~ ~ r , ,, ~-~-~ i~ ~~ ~, -; i~ ~ Ih~ ~~ ~ ~ a~~~i''gi ~~ ~ ~~~~ ~- ~,M,_~ i a Sao^, r v ~~~~2~:0" ~~ Zb Po` ,.,~~a~, Gay l ya ~,; u:~~~ µcg _ ?. •: p I Pd EFL-,.._-..,,_ i~ ~ ~ U, ~, o 1 ~i ~i i ~ ~i~~ 4 , U O w o ~o z ~,,~ z w m x z U a~ ~ ~ o ~a a~ a w Y f° 1126 ' ~~,, Fisheries Peches and Oceans et Oceans ,y -. • ~ ~: Small Craft Harbours ~" ~ ` Ports pour petite bateaux '-~" Central and Arctic Region Region du Centre et du I'Arctique ""~zaacesFroreROad 86fi: ehemin-tskeshere P-9-Box-505p ~+:P-_$~rJ~ Burlington, Ontario Burlington (Ontario) NR'4A8 3027 Harvester Road~~~ P.O. Box 85120 Burlington, Ontario L7R 4K3 (905) 639-4330 January 31, 1996. Ms. Patti Barrie, Clerk, Municipality of Clarington, 40 Temperance Street, Bowmanville, Ontario. L1C 3A6 .Dear Ms. Barrie: Yom lile Vohe r2lArence Our file NoVe r6lerenca 5882-70/N161 ,, \ re: Management Agreement 9010 00 002 (Town of Newcastle) Launching Ramp partial encroachment and Small Craft Harbour facilities Newcastle Ontario As the above-noted Management Agreement expired on September 30, 1995, we are enclosing a new draft Management Agreement, in triplicate, for a two-year period commencing October 1, 1995. In regard to the Municipality's Management Agreement and recreational Small Craft Harbours facilities generally, I wish to advise that a review of departmental programs concluded that recreational harbours have little association with our core mandate in oceans management. The review identified that these activities are best done by organizations and individuals more closely associated with tourism and recreation, specifically by those who benefit directly or indirectly from the economic and social advantages generated by such properties. In keeping with this finding, the federal budget announced that this department will, over the next few years, conclude its involvement with the more than 800 recreational harbours across Canada. In addition to the foregoing, and in the interim, we are further advised that increase in revenues is an integral part of the divestiture process. Accordingly, it has been decided that for all agreements, similar to the Municipality's, which are to be renewed in the 1995 calendar year, the rental rate for the first year of the term will remain unaltered (i.e. $1D0.00 per annum or 15% of gross revenue, whichever is greater); however, the subsequent years are to be increased to $500.00 per annum or 20% of gross revenue, whichever is greater. In this regard, please refer to the "Reddendum" clause of the enclosed agreement. All new management agreements to be entered into or hereafter, will contain the $500.00 or 20% rental rate. ATTACFiNEPIf N0. 2 continued... ~ ~ 2 ~ °-~ Canada 2. Ms. Patti Barrie (continued) January 31, 1996. For future reference, please be advised that administrative fees for the Minister's Consent are now established at $100.00 per Consent, or $200.00, should the assistance of the Department of Justice be required. As usual, the applicable GST is to accompany each administrative fee submitted. In any event, please have the enclosed Agreement executed on behalf of the Municipality, including your seal, and return all three copies to this office, together with that part of the rent due in advance pursuant to sub-paragraph (i)(a) of the Reddendum Clause, plus applicable GST as noted hereunder: Rent due October 1, 1995 $100.00 GST - 7% x $100.00 7.00 TOTAL $107.00 Our GST No. is 121491807. Your cheque should be made payable to the Receiver General for Canada. Also when returning the documents, please provide us with a duly certified copy of a By-Law authorizing the execution of the Agreement on behalf of the Municipality. Upon completion on behalf of the Minister, the Duplicate Original Agreement will be returned for your retention. In regard to the collection of fees, would you kindly provide this office with any outstanding money owed the Crown in accordance with sub-section (b) of the Reddendum Clause of the expired Agreement (plus 7% GST), together with a copy of a financial statement in support thereof which would be acceptable by our financial officer for audit purposes. In closing, in relation to the foregoing, the federal divestiture policy will offer government assets, sequentially to other federal agencies, provincial governments, municipal governments; local community groups and finally, through public tender, to the private sector. Where no interest is shown, removal of the structures may be our only option, particularly in cases involving public safety. As the department is in the initial stages of this process, we are confident that the Municipality may wish to consider this eventuality and develop an acquisition strategy. Please do not hesitate to contact this office should you wish to discuss any of the foregoing. Yours sincerely, .__ ~~ D.G. Blanchard A/Director Small Craft Harbours Branch Central and Arctic Region Enc. _i.- ~t ,l~. ~ u X ~{p 1 L f ~ /~' Fisheries and Oceans Small Craft Harbours P.O. Box 85120 3027 Harvester Road Burlington, Ontario L7R 4K3 Tel (905) 639.4330 Fax (90u~ 639-5975 11 September 1996 Peches et Oceans Ports pour petits bateaux C.P. 85120 3027, chemin Harvester Budinglon (Ontario) L7R 4K3 Mr. Bill Stockwell Chief Administrative Officer Corporation of the Municipality of Clarington 40 Temperance Street Bowmanville, Ontario L1C 3A6 Dear Mr. Stockwell: Re: Small Craft Harbours' Facilities -Newcastle Your Fde vorre l..nca Our file Norn referenn 5882 `D' Newcastle Reference is made to our previous correspondence regarding the Draft Lease Renewal Agreement for the Small Craft Harbours breakwater entrance facility in Newcastle, as well as the direction of the Small Craft Harbours Program in general. We were disappointed to learn of the Municipality's reluctance to accept the new lease renewal terms. In light of the new direction of the Small Craft Harbours Program, however, we would be prepared to consider the transfer of ownership of the facility to the Municipality, as an alternative to the standard lease arrangement. As we had briefly outlined in our previous correspondence, the Small Craft Harbours Program is focused on divesting its recreational harbour inventory. The federal divestiture policy offers government assets sequentially to other federal departments and agencies, provincial governments, local governments, local community groups, and finally, through public tender, to the public at large. Obviously, it is unrealistic to expect any interest from another federal department or the province in these times of program reviews and deficit and debt reduction. In light of this and Small Craft Harbours' recognition of the "public" significance associated with many of these facilities, we look first and foremost to the local municipality to consider assuming ownership responsibility for the greater public interest. Many municipalities already manage Small Craft Harbours facilities on a day to day basis -- we are now asking municipalities to consider taking the next logical step -- ownership. ATfAC}NFM N0. 3 2 4A-40-96 Canada X129 Mr. B. Stockwell - 2 - 5 September, 1996 To facilitate the transfer of Small Craft Harbours facilities to municipalities, certain "flexibilities" have been approved which will allow consideration of the following: • Transfer to occur "as is" at nominal value (i.e. $1.00); • An administrative fee of $750 is to be borne by the Municipality -- this offsets a portion of the federal cost; • The Municipality continues operating the facility as a public access point at essentially its current level of operation for a specified period of five years; • Should the Municipality cease to operate the facility or dispose of all or part of the facility within the covenant period, the Municipality would be required to reimburse to the federal government an amount equal to the appraised value of the facility at the time of transfer (frankly, this should not be of concern to the Municipality if it genuinely supports the facility as a public access point). For your information, we have enclosed an information package for the Small Craft Harbours Newcastle facility consisting of general harbour details, an aerial photograph as well as a property layout sketch. We encourage the Municipality to take the time and consider the significance of the facility to the community, and whether the Municipality would have any interest in acquiring the Newcastle small craft harbour at this time. We look forward to receiving Council's general reaction and comments on the possible transfer. In the mean time, if you wish to discuss any aspect of the above, please do not hesitate to contact this office. Yo s sincerely, ~~i'" `~ D.G. Blanchard ' ~ A/Regional Director enc. c.c.: Mr. Alex Shepherd, M.P. ~IZ~ NEWCASTLE, ONTARIO (4733) MUNICIPAL JURISDICTION: USE: Harbour of refuge Harbour entrance structures DESCRIPTION: Municipality of Clarington . two river training piers (entrance structures only) on Lake Ontario .private sector marina (250 berths) located upstream . municipal park development on east side which includes launching facilities • constructed prior to 1973 DFO INFRASTRUCTURE: Structure Condition Structure Condition breakwaters good shore protection fair DFO PROPERTY OWNERSHIP: • 0.748 ha of property (land and water) without reversionary interest SITE MANAGEMENT: • managed by the Municipality of Clarington • five year lease from O1 Oct 1990 to 30 Sep 1995 . nominal base fee or percentage of gross revenue returned to the Crown (whichever is greater) FINANCIAL ASPECTS: Expenditures DFO totals from 1974-94 are $45,004 (capital and O & M) • average DFO maintenance expenditure from 1991-94 is $3,900 • day-to-day maintenance and operating costs are covered by the lessee Revenue average annual return to the Crown is $100 1131 r Q4~ di ID ~ayy ~~r~hbi/ ~~~9~ ~6 !~ ~~ '~a\t ~ 2 ~~~2~2 M~§hha ~ ~~ ~ ~~~l~~~A~ ~~~~~ e~z~-~- yi zi -i ai ~~ ~ ~~, ~ ~A ~~ ~ ~ ~ ~ ~\ ,\ ` z ~ \ \ o \. 1 \ \'j \ \ \ 'O \ \ ` t ~ \ 1 \ \ y, \ \ e-'" \. a .y.,- 55. 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