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HomeMy WebLinkAbout06-19-2023 JointClar*wn Joint General Government and Planning and Development Committees Post -Meeting Agenda Date: June 19, 2023 Time: 9:30 AM Location: Council Chambers or Microsoft Teams Municipal Administrative Centre 40 Temperance Street, 2nd Floor Bowmanville, Ontario Inquiries and Accommodations: For inquiries about this agenda, or to make arrangements for accessibility accommodations for persons attending, please contact: Lindsey Patenaude, Committee Coordinator, at 905-623-3379, ext. 2106 or by email at Iatenaude@clarington.net. Alternate Format: If this information is required in an alternate format, please contact the Accessibility Coordinator, at 905-623-3379 ext. 2131. AudioNideo Record: The Municipality of Clarington makes an audio and/or video record of Council and Committee meetings. If you make a delegation or presentation or attend, the Municipality will be recording you and will make the recording public by on the Municipality's website, www.clarington.net/calendar. Noon Recess: Please be advised that, as per the Municipality of Clarington's Procedural By-law, this meeting will recess at 12.00 noon, for a one hour lunch break, unless otherwise determined by the Committee. Cell Phones: Please ensure all cell phones, mobile and other electronic devices are turned off or placed on non -audible mode during the meeting. Copies of Reports are available at www.clarington.net The Revised Agenda will be published on Friday after 3:30 p.m. Late items added or a change to an item will appear with a * beside them. Joint Committees June 19, 2023 Pages 1. Call to Order 2. Land Acknowledgement Statement 3. Declaration of Interest 4. Announcements 5. Presentations/Delegations 5.1 Presentation by Trevor Pinn, Deputy CAO/Treasurer, Regarding Report FSD-030-23 2022 Audited Financial Statements 5.2 Presentation by Matt Haire and Trina Connell, BDO Canada LLP, 5 Regarding Report FSD-030-23 2022 Audited Financial Statements 5.3 Presentation by Andrea Montgomery, Vice President, and Megan 73 Abraham, Communications Consultant, Redbrick Communications, Regarding Report CAO-016-23 Communications Division - Service Delivery Review *5.4 Presentation by Linda J. Laliberte, CPA, CGA, CAO/Secretary-Treasurer, Ganaraska Region Conservation Authority, Regarding Legislative Changes in the Conservation Authorities Act and Status of Memorandum of Understanding (This Presentation was moved to the September 11, 2023 General Government Committee meeting) 5.5 Delegation by Tish Conlin, Regarding SMART City, Digital Transformation and Equity Spending 5.6 Delegation by Phyllis Milburn, Regarding Pedestrian Safety at the 95 Durham Regional Road 3 and Old Scugog Road Intersection (Correspondence Attached) 5.7 Delegation by Lauren Bull and Tara Asling, Regarding Reducing Speed Limit on Scugog Street *5.8 Ron Hooper, Regarding Report LGS-023-23 Municipal Parking Payment Modernization Page 2 Joint Committees June 19, 2023 6. Consent Agenda 6.1 Communications 6.2 Staff Reports and Staff Memos 6.2.1 PWD-005-23 Fleet Reserve Request 6.2.2 CSD-002-23 Community Hall Board Sustainability Update 6.2.3 ESD-002-23 Emergency Response Service Review and Recommendations 6.2.4 PDS-041-23 Parkland and Open Space Dedication By -Law 6.2.5 PDS-042-23 Infrastructure Canada — Active Transportation Fund — Grant Funding Agreement Authorization 6.2.6 LGS-022-23 Road Closure and Conveyance Policy 6.2.7 LGS-023-23 Municipal Parking Payment Modernization 6.2.8 FSD-028-23 Regional Physician Recruitment Request 6.2.9 FSD-029-23 User Fee Revenue Policy and User Fee By-law 6.2.10 FSD-030-23 2022 Audited Financial Statements 6.2.11 CAO-012-23 Council Remuneration — Impact of Elimination of 1/3 Tax Free Allowance 6.2.12 CAO-013-23 Corporate Climate Action Plan, Annual Update to June 2023 6.2.13 CAO-014-23 Diversity in Clarington - 2023 Update on Diversity Initiatives and Clarington's Diversity Advisory Committee 6.2.14 CAO-015-23 Semi-annual Status Update on Outstanding Resolutions of Council 6.2.15 CAO-016-23 Communications Division Service Delivery Review 7. Items for Separate Discussion 98 102 108 243 255 258 272 281 91811 351 433 437 452 171-01 Page 3 Joint Committees June 19, 2023 8. Unfinished Business 9. New Business 9.1 Joint Regional Statement - Mayor Foster 529 10. Public Meetings 11. Confidential Items 12. Adjournment Page 4 Mun 0 0 Icipall 0 i n gto n { -� ..•. 4b a a b .0 *,:a Audit report to the Council for theyear ended •`•' *' •' `' •' • o* December 31, 2022 � 6 ,.• ,. : Vft ' ►. START ' .IBDO 4 A Fort To the Council of Municipality of Ctarington We are pleased to provide you with this report to highlight and explain key issues which we believe to be relevant to the audit of the Municipality of Clarington (the "Municipality") consolidated financial statements for the year ended December 31, 2022. The enclosed report includes our approach to your audit, including: significant risks identified, the nature, extent, timing, and results of our audit work, and the terms of our engagement. We will also report any significant internal control deficiencies identified during our audit and confirm our independence. During the course of our audit, management made certain representations to us —in discussions and in writing. We documented these representations in the audit working papers. The business environment has changed for us all during the time of COVID-19. Cash flow, strategy, operations: each has received a rethink. As your auditors, we have relied on our digital audit suite to stay connected —among ourselves, with management, and with you. We look forward to discussing our report with you. In the meantime, please feel free to contact us if you have any questions or concerns. Yours truly, BDO Canada LLP June 19, 2023 2 1 Municipality of Clarington Table of Contents 1 Your dedicated BDO audit team 2 Auditor's responsibilities 3 Audit at a glance 4 Status of the audit 5 Audit findings 6 Internal control matters 7 Adjusted and unadjusted differences 8 Other required communications 9 How we audit financial statements 10 Your audit: Client -centricity in action 11 BDO's digital audit suite 12 Recommended resources 13 Appendices 3 1 Municipality of Clarington 15 16 17 LEARN MORE Audit at a dance Your dedicated BDO audit team: Trina Connell, CPA, CA T: (705) 320-0701 E: tconnell@bdo.ca 4 1 Municipality of Clarington Matthew Haire, CPA, CA T: (705) 320-0726 E: mhaire@bdo.ca For the year ended December 31, 2022 JBDO Auditor's responsibilities: financial statements We are responsible for forming and expressing an opinion on the consolidated financial statements that have been prepared by management, with oversight by those charged with governance. The audit of the consolidated financial statements does not relieve management or those charged with governance of their responsibilities. The scope of our work, as confirmed in our engagement letter, is set out below: Present significant findings to the Council including key audit and accounting issues, any significant deficiencies in internal control and any other significant matters arising from our work. Provide timely and constructive management letters. This includes deficiencies in internal control identified during our audit. Consult regarding accounting and reporting matters as requested throughout the year. Read the other information included in the Municipality of Clarington's Annual Report to identify any material inconsistencies with the audited consolidated financial statements. Work with management to issue consolidated financial statements in a timely manner. Identify and assess the risks of material misstatement due to fraud. Obtain sufficient and appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses. Respond appropriately to fraud or suspected fraud identified during the audit. 5 1 Municipality of Clarington Auditor's responsibilities: fraud risks We are responsible for planning and performing the audit to obtain reasonable assurance that the consolidated financial statements are free of material misstatements, whether caused by error or fraud, by: Identifying and assessing the risks of material misstatement due to fraud; Obtaining sufficient and appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and Responding appropriately to fraud or suspected fraud identified during the audit. The likelihood of not detecting a material misstatement resulting from fraud is higher than the likelihood of not detecting a material misstatement resulting from error because fraud may involve collusion as well as sophisticated and carefully organized schemes designed to conceal it. 6 1 Municipality of Clarington For the year ended December 31, 2022 Behind the audit report Learn how we audit your financial statements SEE OUR PROCESS Page 10 1,BDO I • (S) Auditor's responsibilities: fraud risks During the audit, we performed risk assessment procedures and related activities to obtain an understanding of the entity and its environment, including the Municipality's internal control, to obtain information for use in identifying the risks of material misstatement due to fraud and made inquiries regarding: Management's assessment of the risk that the consolidated financial statements may be materially misstated due to fraud, including the nature, extent and frequency of such assessments; Management's process for identifying and responding to the risks of fraud in the Municipality, including any specific risks of fraud that management has identified or that have been brought to its attention, or classes of transactions, account balances, or disclosures for which a risk of fraud is likely to exist; Management's communication, if any, to those charged with governance regarding its processes for identifying and responding to the risks of fraud in Municipality of Clarington; and Management's communication, if any, to employees regarding its view on business practices and ethical behavior. We are not aware of any fraud affecting the Municipality. If you are aware of any instances of actual, suspected, or alleged fraud, please Let us know. 7 1 Municipality of Clarington 14 For the year ended December 31, 2022 41 a Audit at a glance Materiality We determined group materiality to be $2,400,000 for the year ended December 31, 2022. Misstatements are considered to be material if they could reasonably be expected to influence the decisions of users based on the consolidated financial statements. Judgments about materiality are made in light of surrounding circumstances and include an assessment of both quantitative and qualitative factors and can be affected by the size or nature of a misstatement, or a combination of both. We communicated all corrected and uncorrected misstatements identified during our audit to the Council, other than those which we determined to be "clearly trivial." We encouraged management to correct any misstatements identified throughout the audit process. 8 1 Municipality of Clarington For the year ended December 31, 2022 Our independence We have identified relationships between Municipality of Clarington and our Firm that may reasonably be thought to have influenced our independence. These are further discussed in Appendix B. IBDO Audit at a glance Using the work of others: Telus Health In order for us to perform adequate audit procedures on certain financial statement areas, we relied on the work of, and the report prepared by, Telus Health. Canadian generally accepted auditing standards require us to communicate with the expert. We discussed the following with Telus Health: The objective and nature of the audit engagement and how we intended to use the expert's findings and report Our assessment of the significance and risk aspects of the engagement that affected the expert's work The requirement to advise us if they have any relationship with Municipality of Clarington which impaired their judgment or objectivity in the conduct of their engagement i The nature, timing and extent of the expert's work and our planned review of it, possibly including review of their working papers Confirmation that the assumptions used in their calculations are consistent with those used in the prior periods and with industry standards Their obligation to advise BDO Canada LLP of any matters up to the estimated audit report date that may affect their calculations and their report 9 1 Municipality of Clarington For the year ended December 31, 2022 BDO Status of the audit We have substantially completed our audit of the year ended December 31, 2022 consolidated financial statements, pending completion of ' the following items: Receipt of signed management representation letter Receipt of outstanding bank confirmations >'. Subsequent events review through to the consolidated financial statements approval date Approval of consolidated financial statements by Council _yr•'. We conducted our audit in accordance with Canadian generally accepted auditing standards. The objective of our audit was to obtain .� t reasonable, not absolute, assurance about whether the consolidated financial statements are free from material misstatement. See appendix for our draft independent auditor's report. ',, ' xV, '• 10 1 Municipality of Clarington rh N, i• , 2022 '}T Back to contents Q,,, Audit findings As part of our ongoing communications with you, we are required to have a discussion on our views about significant qualitative aspects of the Municipality's accounting practices, including accounting policies, accounting estimates and consolidated financial statements disclosures. We look forward to exploring these topics in depth and answering your questions. A summary of the key discussion points are below: Grant Revenue There is an allocation risk between grant revenue and deferred revenue Funding agreements for grants received were since grants are generally recorded as revenue when funds are received. reviewed to determine whether revenue was Everyday accounting processes do not cover revenue recognition recorded in accordance with the terms of the adjustments. In addition, the government transfers standard causes a agreements. Grants with terms that could risk of completeness of grants and existence of deferred revenue since require a deferral of revenue were found to specific requirements must be met in order to allow revenues to be have been appropriately recognized or deferred deferred. in the year. Tax Revenue The risk relates to the completeness of supplementary revenues and Supplementary revenue and write-off accruals write-offs since they are required to be accrued in the year to which were tested and analyzed. The estimated they relate and have to be estimated. accruals for write-offs and supplementary taxation revenue were found to be reasonable. Management Override of Management is in the unique position to perpetrate fraud because of We reviewed the appropriateness of journal Controls management's ability to directly or indirectly manipulate accounting entries made by staff and reviewed estimates records and prepare fraudulent consolidated financial statements by for any biases and did not note activity overriding controls that otherwise appear to be operating effectively. indicating management has overridden controls to meet their biases. Overstatement of accruals There is a risk that accruals are overstated due to management bias to We reviewed management accruals and use up department budgets and/or government use it or lose it funding analysed estimates and reasoning for the accruals. We also reviewed subsequent expenses to ensure no accruals were missing. 11 1 Municipality of Clarington Page 15 .000enodedDoec,mber3l,2022 O BDO'S DIGITAL AUDIT SUITE BDO Global Portal We use el you c a orate your audit team in a seamless way —placing everything you need in one accessible, secure place. DISCOVER THE DIGITAL DIFFERENCE Back to contents Q., Audit findings (continued) Reasonability of deferred There is a risk that general deferred revenue is being created to We tested collections for deferred revenue and revenue decrease revenues and have no reason to be deferred. uses for each deferred revenue. We also reviewed the uses of the obligatory reserves to ensure the uses were allowable under the Municipal Act. Incomplete recreation fees There is a risk that recreation staff are not charging fees for usage of We vouched a sample of user charges and facilities or are charging lower rates. agreed the balances to supporting documentation. We also compared user charges across the last 3 years and discussed significant changes with management. 0 .000en0dedD,c,mbe'r31,2022 O BDO'S DIGITAL AUDIT SUITE BDO Global Portal use you el you c a orate your audit team in a seamless way —placing everything you need in one accessible, secure place. DISCOVER THE DIGITAL DIFFERENCE 12 1 Municipality of Clarington �I Page 16 L For the year ended December 31, 2022 Internal control matters 0__ During the audit, we performed the following procedures regarding the We are required to report to you in writing about any significant Municipality's internal control environment: deficiencies in internal control that we have identified during the audit. ► Documented operating systems to assess the design and implementation of control A significant deficiency is defined as a deficiency or combination of activities that were relevant to the audit. deficiencies in internal control that merits the attention of those ► Discussed and considered potential audit risks with management. charged with governance. We considered the results of these procedures in determining the extent and nature of audit The audit expresses an opinion on the Municipality's consolidated financial statements. testing required. As a result, it does not cover every aspect of internal controls —only those relevant to preparing the consolidated financial statements and designing appropriate audit procedures. This work was not for the purpose of expressing an opinion on the effectiveness of internal control. No control deficiencies were noted that, in our opinion, are of significant importance to discuss. 13 1 Municipality of Clarington I BDO Page 17 For the year ended December 31, 2022 U Other required communications Professional standards require independent auditors to communicate with those charged with governance certain matters in relation to an audit. In addition to the points communicated within this letter, the attached table summarizes these additional required communications. Potential effect on the financial statements of any material risks and exposures, such as pending litigation, that are required to be disclosed in the financial statements. Material uncertainties related to events and conditions that may cast significant doubt on the Municipality's ability to continue as a going concern. Disagreements with management about matters that, individually or in the aggregate, could be significant to the Municipality's financial statements or our audit report. Matters involving non-compliance with laws and regulations. Significant related party transactions that are not in the normal course of operations and which involve significant judgments made by management concerning measurement or disclosure. Management consultation with other accountants about significant auditing and accounting matters. Other Matters Disclosure of potentially material risks and exposures related to pending litigation is included in the financial statements. No material uncertainties related to events and conditions that may cast significant doubt on the Municipality's ability to continue as a going concern. There were no disagreements with management. No matters were identified involving non-compliance with laws and regulations. No significant related party transactions to note - all related parties are consolidated for financial statement purposes. BDO is not aware of any consultations held by management. No other matters to note. 14 1 Municipality of Clarington JBDO Page 18 How we audit financial statements: Our audit process IDENTIFY AND ASSESS RISK Focus on those areas of financial statements that contain potential material misstatements as a consequence of the risks you face SCOPING Complete a preliminary review to plan the audit, determine the materiality level, and define the audit scope OBTAIN AUDIT EVIDENCE Perform audit procedures while maintaining appropriate degree of professional skepticism, to conclude whether or not the financial statements are presented fairly DESIGN AUDIT PROCESS Design an appropriate audit strategy to obtain sufficient assurance and enable us to report on the financial statements REPORT Communicate our opinion and details of matters on which we are required to report n FORM OPINION Evaluate whether we have enough evidence to conclude that the financial statements are free from material misstatement, and consider the effect of any potential misstatements found For the year ended December 31, 2022 New Standard for Audit Quality 1 SQM 1 The quality of an audit depends not only on the people conducting it —but also on the systems underpinning it. These new rules up the ante for your audit quality. SEE THE STANDARD 15 1 Municipality of Clarington JBDO For the year ended December 31, 2022 @.,,, Updates to our audit process Canadian Auditing Standard 315, Identifying and Assessing the Risks of Material Misstatement, was significantly revised with a greater focus on more robust risk identification, assessment and response procedures. The standard is effective for periods beginning on or after December 15, 2021. Key enhancements include: Assessment of inherent and control risk New guidance on identifying and assessing inherent risks (risk of material misstatement without consideration of control) and control risks (risk of control not preventing or detecting material misstatement) 16 1 Municipality of Clarington d Spectrum of inherent risk Additional requirement to assess the likelihood and magnitude of misstatement, considering how inherent risk factors impact the degree to which inherent risk varies UInternalsystem Clarifying requirements on indirect and direct controls in the system of internal control and the need for evaluation of design and implementation of controls (M Expanded information on the use of technology (IT environment and IT general controls) and related risks jo:, More explicit standback requirement for evaluation of completeness and appropriateness of risk assessment process What's the impact to you? More inquiry, observation, and inspection procedures, especially for risks related to the use of technology No change to communicating significant risks Audit procedures focused on addressing risks identified More consistent and effective audits with improved responses to identified risks improving audit quality for all stakeholders JBDO Our audit approach: Responsiveness in action Our firm is deliberately structured to allow one partner to every six staff members. This means easy access to senior staff and the lead partner throughout your audit. It also helps our team gain a better understanding of your organization. Our audit process differs from the typical audit in our use of in -field reviews, subject to COVID-19 safety protocols. The benefit of these in -field reviews is that final decision -makers are on site ensuring issues are resolved and files closed quickly. We offer clients the full -service expertise of a national firm. Yet we maintain a local community focus. The comprehensive range of services we deliver is complemented by a deep industry knowledge gained from over 100 years of working within local communities. OUR AUDIT APPROACH SUPPORTS 17 1 Municipality of Clarington CONSISTENCY Drives consistency and quality in audit execution throughout BDO, enabling us to be responsive to your size and location needs A DIGITAL APPROACH We promote a paperless audit where we perform and document our audit and exchange information with you and your team using technology CEPTIONAL DELIVERY ing our highly trained teams, underpinned by an exceptionally uitive audit methodology, to enable timely and efficient delivery your audit Page 21 For the year ended December 31, 2022 Discover how we're accelerating audit quality Audit Quality Report We collected our core beliefs around audit quality, the very practical steps we take to sustain it, and the progress we have made to accelerate its quest. Follow our progress JBDO For the year ended December 31, 2022 BDO's digital audit suite Our digital audit suite of technologies enables our engagement teams to conduct consistent risk -based audits, both domestically and internationally, with maximum efficiency and minimal disruption to our clients' operations and people. APT Next Gen 1. — Our audit software and documentation tool, APT, is an integral part of our audit methodology. Our professionals engage APT to devise and perform ICE appropriate, risk -based audit procedures and testing based on applicable Canadian Auditing Standards (CASs), as well as to factor in engagement and industry -specific objectives and circumstances. APT enables us to deliver an audit that fits your organization —whether large or small; complex or basic. This sophisticated tool also amplifies two key attributes of our audits: consistency and quality. The quality framework that we developed measures our audit performance with hard quality indicators and reflects our indispensable culture for quality. To see our audit quality and consistency in action, look no further than how our teams share best audit practices for continuous improvement. Through a strategic alliance with Microsoft and the introduction of new technology, this global, cloud -based application can now streamline and focus the audit process in even more ways for BDO professionals and their clients. 18 1 Municipality of Clarington JBDO For the year ended December 31, 2022 BDO Global Portal BDO Global Portal transforms and enhances your digital experience with your BDO advisors. Available at any time, Portal enables you to access all services, tools, apes, and information and to collaborate with your advisors in a seamless way through a flexible, appealing, and secure environment. SECURE DOCUMENT SHARING BDO Global Portal allows BDO and the clients to collaborate securely through 4 features like multi -factor authentication, DocuSign, data storage encryption, secure document exchange, and audit logging. ONE PLATFORM, CUSTOMER AT THE CENTRE BDO Global Portal is a customer -centric solution that reflects your needs through quarterly platform releases. co 19 1 Municipality of Clarington o SEAMLESS AND INTEGRATED EXPERIENCE o I I BDO Global Portal is an open platform enabling firms to integrate local applications and languages. This creates a seamless and tailored experience. 24/7 ACCESS TO BDO SERVICES BDO Global Portal provides 24/7 access to BDO services, modern tools, and apps as well as insights tailored to your industry and business. ENHANCE COLLABORATION BDO Global Portal offers a real time collaboration space for BDO and its clients, including project, task and team management. NOTIFICATIONS Within the BDO Global Portal you can set the interval for when and which notifications you want to receive about the changes in the BDO Global Portal. • rcayC c7 1 JBDO Recommended resources Key changes to financial reporting fi I When the rules of reporting change, you may need to fine-tune how to present financial statements and govern the organization. ACCESS OUR KNOWLEDGE CENTRE 20 1 Municipality of Clarington 2023 Federal Budget 1�v Understand the key elements of the 2023 Federal Budget and how it will impact you and your business lwb WMAMAP►0oral 1A'mft WAWA m ' 7 powerful steps to financial audit readiness Getting and staying prepared for an audit simplifies the process, cuts turnaround time, and improves your chances of overall success. Learn how you can be audit ready. 7 STEPS For the year ended December 31, 2022 Asset Retirement Obligations (ARO): A Practical Approach to Section PS 3280 This publication will walk through a practical approach to applying Section PS 3280 including: identification, recognition and measurement of an obligation, and the different options available to entities on transition. READ ARTICLE JBDO Spotlight on sustainability Fast-moving world events are pushing sustainability up the agenda of Canadian organizations. Now organizational leaders, investors, and customers are responding on three fronts: environmental, social, and governance (ESG). Regulators and issuers of standards are doing their part by supporting sustainability in the reporting ecosystem. Increasingly, organizations will need to go beyond the financials —and demonstrate sustainability with non -financial metrics. 21 1 Municipality of Clarington 5 reasons why businesses should care about ESG SEE 5 REASONS Accounting for going green LEARN MORE How climate change became a business issue worth reporting READ ARTICLE Why CFOs should make sustainability a part of their financial reporting today •V BUILD BACK SUSTAINABLY For the year ended December 31, 2022 10 Questions about sustainability reporting EXPLORE QUESTIONS Rethinking sustainability: the ESG roadmap SEE ROADMAP JBDO For the year ended December 31, 2022 Appendices Appendix A: Independent auditor's report Appendix B: Independence update Appendix C: Representation letter Appendix D: Adjusted and unadjusted differences 22 1 Municipality of Clarington .: IM � , ..�� ,,��;111 Fo Appendix A. 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Visa- i..inri �111 ' ►' rr ft 1' 1 ber 31, 2022 BDO Independent Auditor's Report To the Members of Council of the Corporation of the Municipality of Clarington Opinion We have audited the consolidated financial statements of the Corporation of the Municipality of Clarington and its entities (the Group), which comprise the consolidated statement of financial position as at December 31, 2022, and the consolidated statement of operations, the consolidated statement of change in net financial assets and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2022, and its consolidated results of operations, its consolidated change in net financial assets, and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Group's financial reporting process. Page 28 Auditor's Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. DRAFT Chartered Professional Accountants, Licensed Public Accountants Lindsay, Ontario June xx, 2023 Page 29 oft Appendix B: Independence update 24 1 Municipality of Clarington } Ej For the year ended Decgmlj6-r 31, 2022�� 6 IBDo JBDO Tel: (705) 324-3579 BDO Canada LLP 165 Fax:(705) 324-0774 165 Kent Street West Toll -free: 1-800-955-1509 P.O. Box 358 www.bdo.ca Lindsay, Ontario K9V 453 June 19, 2023 Members of Council Municipality of Clarington Dear Members of Council: We have been engaged to audit the consolidated financial statements of Municipality of Clarington (the "Municipality") for the year ended December 31, 2022. Canadian generally accepted auditing standards require that we communicate at least annually with you regarding all relationships between the Municipality and our Firm that, in our professional judgment, may reasonably be thought to bear on our independence. In determining which relationships to report, the standards require us to consider independence rules and interpretations of the CPA profession and relevant legislation. We have prepared the following comments to facilitate our discussion with you regarding independence matters arising since August 3, 2022, the date of our last letter. We are aware of the following relationships between the Municipality and us that, in our professional judgment, may reasonably be thought to have influenced our independence. The following relationships represent matters that have occurred from August 3, 2022 to June 19, 2023. We have provided assistance in the preparation of the consolidated financial statements, including adjusting journal entries and/or bookkeeping services. These services created a self -review threat to our independence since we subsequently expressed an opinion on whether the consolidated financial statements presented fairly, in all material respects, the financial position, results of operations and cash flows in accordance with Canadian Public Sector Accounting Standards. We, therefore, required that the following safeguards be put in place related to the above: • Management provided us with a trial balance and draft consolidated financial statements, including notes, prior to completion of our audit. • Management created the source data for all the accounting entries. • Management developed any underlying assumptions required with respect to the accounting treatment and measurement of the entries. • Management reviewed advice and comments provided and undertook their own analysis considering the Municipality's circumstances and generally accepted accounting principles. • Management reviewed and approved all journal entries prepared by us, as well as changes to financial statement presentation and disclosure. • Someone other than the preparer reviewed the proposed journal entries and consolidated financial statements. Page 1 of 2 BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. Page 31 JBDO The total fees charged to the Municipality for audit services was $66,500. This letter is intended solely for the use of Council, management and those charged with governance of the Municipality and should not be used for any other purpose. Yours truly, SOO Ga*Laova. LL P Chartered Professional Accountants, Licensed Public Accountants Page 2 of 2 Page 32 For the year ended December 31, 2022 Appendix C: Representation letter 25 1 Municipality of Clarington JBDO The Corporation of the Municipality of Clarington 40 Temperance Street Bowmanville, ON L1 C 3A6 June 19, 2023 BDO Canada LLP Chartered Professional Accountants 165 Kent Street West P.O. Box 358 Lindsay Ontario K9V 4S3 This representation letter is provided in connection with your audit of the financial statements of The Corporation of the Municipality of Clarington for the year ended December 31, 2022, for the purpose of expressing an opinion as to whether the financial statements are presented fairly, in all material respects, in accordance with Canadian Public Sector Accounting Standards. We confirm that to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves: Financial Statements We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated January 3, 2023, for the preparation of the financial statements in accordance with Canadian Public Sector Accounting Standards; in particular, the financial statements are fairly presented in accordance therewith. • The methods, significant assumptions, and data used in making accounting estimates and their related disclosures are appropriate to achieve recognition, measurement and/or disclosure that are reasonable in accordance with Canadian Public Sector Accounting Standards. • Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of Canadian Public Sector Accounting Standards. • All events subsequent to the date of the financial statements and for which Canadian Public Sector Accounting Standards require adjustment or disclosure have been adjusted or disclosed. • The financial statements of the entity use appropriate accounting policies that have been properly disclosed and consistently applied. • The effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements as a whole. A list of the uncorrected misstatements is attached to the representation letter. • We have reviewed and approved all journal entries recommended by the practitioners during the audit. A list of the journal entries is attached to the representation letter. Information Provided • We have provided you with: • access to all information of which we are aware that is relevant to the preparation of the financial statements, such as records, documentation and other matters; • additional information that you have requested from us for the purpose of the audit; and Page 34 • unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. • We are responsible for the design, implementation and maintenance of internal controls to prevent, detect and correct fraud and error, and have communicated to you all deficiencies in internal control of which we are aware. • All transactions have been recorded in the accounting records and are reflected in the financial statements. • We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements. • We have disclosed to you the identity of the entity's related parties and all the related party relationships and transactions of which we are aware. Fraud and Error • We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. • We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves: • management; • employees who have significant roles in internal control; or • others where the fraud could have a material effect on the financial statements. • We have disclosed to you all information in relation to allegations of fraud, or suspected fraud, affecting the entity's financial statements communicated by employees, former employees, analysts, regulators, or others. General Representations • Where the value of any asset has been impaired, an appropriate provision has been made in the financial statements or has otherwise been disclosed to you. • We have provided you with significant assumptions that in our opinion are reasonable and appropriately reflect our intent and ability to carry out specific courses of action on behalf of the entity when relevant to the use of fair value measurements or disclosures in the financial statements. • We confirm that there are no derivatives or off -balance sheet financial instruments held at year end that have not been properly recorded or disclosed in the financial statements. • Except as disclosed in the financial statements, there have been no changes to title, control over assets, liens or assets pledged as security for liabilities or collateral. • The entity has complied with all provisions in its agreements related to debt and there were no defaults in principal or interest, or in the covenants and conditions contained in such agreements. • There have been no plans or intentions that may materially affect the recognition, measurement, presentation or disclosure of assets and liabilities (actual and contingent). Page 35 The nature of all material uncertainties have been appropriately measured and disclosed in the financial statements, including all estimates where it is reasonably possible that the estimate will change in the near term and the effect of the change could be material to the financial statements. There were no direct contingencies or provisions (including those associated with guarantees or indemnification provisions), unusual contractual obligations nor any substantial commitments, whether oral or written, other than in the ordinary course of business, which would materially affect the financial statements or financial position of the entity, except as disclosed in the financial statements. Other Representations Where the Situation Exists • We have informed you of all known actual or possible litigation and claims, whether or not they have been discussed with legal counsel. When applicable, these litigation and claims have been accounted for and disclosed in the financial statements. • The financial statements and any other information in the annual report provided to you prior to the date of this representation letter are consistent with one another, and there is no material misstatement of the other information. We have provided you with the final version of the documents comprising the annual report. • We will provide to you, when available and prior to issuance by the entity, the final version of the documents comprising the annual report. • We are not aware of any contaminates sites within the municipality that would have an impact on the financial statements. Yours truly, Signature Position Signature Position Page 36 For the year ended December 31, 2022 00fl Appendix D: Adjusted and unadjusted differences Od oil I Ir 26 1 Municipality of Clarington w Lel Municipality of Clarington Year End: December 31, 2022 Journal Entries Date: 1999-01-12 To 2022-12-31 Number Date Name Account No Reference Debit Credit Recurrence Misstatement 2 2022-12-31 Reserve Fund Interest BDO3 1,561,560.96 2 2022-12-31 PK.LOT R/F-INTEREST 501-00-000-00000-6540 23,948.54 2 2022-12-31 IND./ECON.DEV.R/F-INTEREST 502-00-000-00000-6540 12,339.94 2 2022-12-31 RD CAP RF-INTEREST 503-00-000-00000-6540 16,712.84 2 2022-12-31 ENG.FLEET R/F-INTEREST 505-00-000-00000-6540 2,504.12 2 2022-12-31 NEWC WATERFRONT R/F-INTEREST 508-00-000-00000-6540 785.23 2 2022-12-31 STRATEGIC CAPITAL R/F-INTEREST 510-00-000-00000-6540 372,816.85 2 2022-12-31 MUN CAP WORKS R/F-INTEREST 511-00-000-00000-6540 166,529.82 2 2022-12-31 GEN.MUN.PURP. R/F-INTEREST 512-00-000-00000-6540 419,339.52 2 2022-12-31 ENG.& INSP. FEES R/F-INTEREST 513-00-000-00000-6540 18,658.57 2 2022-12-31 ROADS CONTR. R/F-INTEREST 514-00-000-00000-6540 13,951.31 2 2022-12-31 DEBENTURE R/F-INTEREST 515-00-000-00000-6540 16,483.14 2 2022-12-31 FAC/PARKS MTNCE RF-INTEREST 516-00-000-00000-6540 11,654.57 2 2022-12-31 ENG. PKS CAP R/F -INTEREST 517-00-000-00000-6540 5,233.03 2 2022-12-31 CS CAPITAL R/F-INTEREST 518-00-000-00000-6540 13,978.91 2 2022-12-31 CEM.CAPITAL R/F-INTEREST 520-00-000-00000-6540 773.48 2 2022-12-31 COMPUTER EQUIP RF-INTEREST 521-00-000-00000-6540 7,477.98 2 2022-12-31 FIRE EQUIP RF-INTEREST 522-00-000-00000-6540 46,082.15 2 2022-12-31 A/SERV CAP RF-INTEREST 523-00-000-00000-6540 5,437.38 2 2022-12-31 OPER EQUIP RF-INTEREST 524-00-000-00000-6540 60.48 2 2022-12-31 CLERK FLEET RF-INTEREST 525-00-000-00000-6540 756.15 2 2022-12-31 PORT GRANBY RF-INTEREST 526-00-000-00000-6540 5,497.60 2 2022-12-31 IMPACT/ESCROW R/F-INTEREST 528-00-000-00000-6540 1,812.05 2 2022-12-31 CLAR./REGION A ACCT.-INTEREST 537-00-000-00000-6540 11,729.11 2 2022-12-31 OLDER ADULTS R/F-OPER-INTEREST 539-00-000-00000-6540 676.43 2 2022-12-31 LIBR CAP RF-INTEREST 542-00-000-00000-6540 18,522.88 2 2022-12-31 LIBR COMP EQUIP RF-INTEREST 543-00-000-00000-6540 7,011.45 2 2022-12-31 BOW MUS CAPITAL RF-INTEREST 544-00-000-00000-6540 1,341.47 2 2022-12-31 CLARKE MUSEUM CAP RF-INTEREST 545-00-000-00000-6540 1,499.52 2 2022-12-31 BOW BIA RF-INTEREST 547-00-000-00000-6540 269.82 2 2022-12-31 NEWCASTLE BIA R/F-INTEREST 548-00-000-00000-6540 1,452.56 2 2022-12-31 NEWC.ARENA R/F-OPER-INTEREST 549-00-000-00000-6540 46.52 2 2022-12-31 RATE STABILIZATION R/F-INTEREST 554-00-000-00000-6540 185,857.74 2 2022-12-31 COMMUNITY IMPROVE PLAN R/F-INTEREST 556-00-000-00000-6540 29,320.07 2 2022-12-31 C/S BLDG REFURB. R/F-INTEREST 560-00-000-00000-6540 44,968.01 2 2022-12-31 BEAUTIFICATIONlTREE PLANTING RF-INTER 561-00-000-00000-6540 1,672.45 2 2022-12-31 CEMETERY RF-INTEREST 562-00-000-00000-6540 2,004.22 2 2022-12-31 STORMWATER MGMT POND MTNCE RF-INTI 563-00-000-00000-6540 583.20 2 2022-12-31 ENG REVIEW FEES RF-INTEREST 564-00-000-00000-6540 29,049.81 2 2022-12-31 COMM EMERG MGMT RF-INTEREST 565-00-000-00000-6540 14,094.21 2 2022-12-31 PARKING REHABILITATION RF-INTEREST 566-00-000-00000-6540 11,544.19 2 2022-12-31 BENEFITS COST STABILIZATION R/F-INTERE 567-00-000-00000-6540 24,836.95 2 2022-12-31 MUN GOVT ENTERPR-OTHER RF-INTEREST 568-00-000-00000-6540 28,705.32 2 2022-12-31 FUTURE STAFFING RF -INTEREST 569-00-000-00000-6540 7,245.23 2 2022-12-31 CONTINUOUS IMPROVEMENT RF-INTEREST 571-00-000-00000-6540 4,333.70 2 2022-12-31 ORONO BIA RF-INTEREST 575-00-000-00000-6540 678.02 To adjust reserve fund interest to income statement 2022-12-31 Contribution from Others BDO2 209,039.04 2022-12-31 TOYOTA TRAIL-CONTRIB OTHERS 110-32-325-83379-6760 20,141.16 2022-12-31 PROPSECT ST & LAMBS LANE AREA-CONTR 110-32-330-83242-6725 3,876.14 2022-12-31 LAKE RD EXTENSION-CONTRIB OTHER 110-32-330-83422-6760 24,211.67 2022-12-31 RUNDLE RD (OWASCO)-CONTRIB OTHERS 110-32-330-83455-6760 107,727.22 2022-12-31 BROWN ST (VICTORIA ST TO QUEEN ST)-CC 110-32-330-83457-6725 17,298.42 2022-12-31 NORTHGLEN PH 8 PARKETTE - CONTRIB OT 110-36-325-83709-6760 26,905.00 2022-12-31 RURAL RD RESURF - CONTRIB OTHERS 110-36-330-83680-6760 194,923.83 2022-12-31 BLOOR ST MULTI -USE PATH - CONTRIB REG 110-36-330-83714-6725 6,529.68 2022-12-31 S/WALK REPLACE-UNSPECIFIED-CONTRIB ( 110-36-331-83215-6760 71,303.70 2022-12-31 GRANTS - CANADA - NON RECURRING 100-05-230-10006-6200 244,858.20 2022-12-31 NEWCASTLE LIONS TRAIL-CONTRIB FED GC 110-36-325-83726-6710 115,863.20 2022-12-31 SOPERCREEK PARK UPGRADES-CONTRIB F 110-50-325-83284-6710 57,000.00 2022-12-31 PARKING LOT EV CHARGERS-CONTRIB FED 110-50-327-83211-6710 31,995.00 2022-12-31 PLANNING -BUILDING INSP VEHICLE-CONTRI 110-50-388-84246-6710 40,000.00 To adjust federal grant funding from TCA accounts 2023-06-15 Page 38 2:06 PM Page 1 Municipality of Clarington 0. 10-1 Year End: December 31, 2022 Prepared y e ai ev en Rev Quality Rev Number Date Name Account No Reference Debit Credit Recurrence Misstatement 5 2022-12-31 GRANTS - PROVINCIAL - NON RECURRING 100-05-230-10008-6201 34,841.80 5 2022-12-31 NEWCASTLE LIONS TRAIL-CONTRIB PROV C 110-36-325-83726-6720 28,965.80 5 2022-12-31 DIVERSITY & INCLUSION PROJ - PROV CONI 110-42-130-84313-6720 5,876.00 To adjust provincial grant funding from TCA accounts 6 2022-12-31 Obligatory Reserve Funds Earned BD04 8,660,095.75 6 2022-12-31 RURAL RD RESURF - BAL FWD 110-36-330-83680-6990 8,660,095.75 To reallocate obligatory reserve revenue - Client does not separate out of reserve transfers 7 2022-12-31 Rserve Transfer R-TSFR 1,712,722.35 7 2022-12-31 Reserve Fund Change FS B-VV.1 3,309,747.35 7 2022-12-31 Accumulated surplus (deficit), beginning of yea LIB-00-000-00000-2991 1,132,960.00 7 2022-12-31 Accumulated surplus (deficit), beginning of yea MUS-00-000-00000-2991 464,065.00 Reserve Transfer 8 2022-12-31 Rserve Transfer R-TSFR 4,018,164.00 8 2022-12-31 SURPLUS/DEFICIT - REVENUE FUND 100-00-000-00000-2991 4,018,164.00 To adjust capital fund balance to agree to closing retained earnings 2023-06-15 Page 39 2:06 PM Page 2 Corporation of the Municpality of Clarington Summary of Unadjusted Misstatements December 31, 2023 Proposed Adjustments Description of Misstatement Identified Misstatements Projections of Identified Misstatements Estimates Assets Dr(Cr) Liabilities Dr(Cr) Opening R/E Dr(Cr) Income Dr(Cr) Extrapolated error in amortization calculation 1,273 521,048 521,048 (521,048) Likely Aggregate Misstatements Before Effect of Previous Year's Errors and Estimates 1,273 521,048 521,048 (521,048) Effect of Previous Year's Errors - - Likely Aggregate Misstatements 521,048 (521,048) Details of why no adjustment has been made to the financial statements for the above items: The actual and extrapolated error is not material to adjust Page 40 705 3243579 Canada LLP JBDO 0774 165 165 Kent Street W 705 3240774 1 800 955 1509 PO Box 358 www.bdo.ca Lindsay ON K9V 4S3 June 19, 2023 Historic Downtown Bowmanville Business Improvement Area 40 Temperance Street Bowmanville, ON L1 C 3A6 Re: Report to the Audit committee for the year ending December 31, 2022 Dear Board of Directors: Our report is designed to highlight and explain key issues which we believe to be relevant to the audit, including audit risks, the nature, extent, timing, and results of our audit work and the terms of our engagement. This report forms a significant part of our overall communication strategy with the Board of Directors and is designed to promote effective two-way communication throughout the audit process so that we may both share timely information. We are communicating only those matters of governance interest that come to our attention as a result of the performance of the audit. We are not required to design audit procedures for the specific purpose of identifying matters of governance interest. Our audit and therefore this report will not necessarily identify all matters that may be of interest to the Board of Directors in fulfilling its responsibilities. This report has been prepared solely for the use of the Board of Directors and should not be distributed without our prior consent. Consequently, we accept no responsibility to a third party that uses this communication. Terms of Reference Our overall responsibility is to form and express an opinion on the financial statements based on our audit procedures. The financial statements are prepared by management, with oversight by those charged with governance. The audit of the financial statements does not relieve management or those charged with governance of their responsibilities. The scope of our work, as confirmed in our engagement letter is set out below. Engagement Objectives ► Forming and expressing an audit opinion on the financial statements. ► Present significant findings to the Board of Directors including key audit and accounting issues, any significant deficiencies in internal control and any other significant matters arising from our work. ► Provide timely and constructive management letters. This will include deficiencies in internal control identified during our audit. ► Consult regarding accounting matters are requested throughout the year. ► Work with management towards the timely issuance of financial statements. Page 1 of 8 BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms Page 41 JBDO Audit Strategy Our overall audit strategy involved extensive partner and manager involvement in all aspects of the planning and execution of the audit and was based on our overall understanding of Historic Downtown Bowmanville Business Improvement Area. We performed a risk based audit which allows us to focus our audit effort on higher risk areas and other areas of concern for management and the Board of Directors. To assess risk accurately, we gained a detailed understanding of Historic Downtown Bowmanville Business Improvement Area's business and the environment it operates in. This allowed us to identify, assess and respond to the risks of material misstatement. To identify, assess and respond to risk, we obtained an understanding of the system of internal control in place in order to consider the adequacy of these controls as a basis for the preparation of the financial statements, to determine whether adequate accounting records have been maintained and to assess the adequacy of these controls and records as a basis upon which to design and undertake our audit testing. Based on our risk assessment, we designed an appropriate audit strategy to obtain sufficient assurance to enable us to report on the financial statements. We chose audit procedures that we believed were the most effective and efficient to reduce audit risk to an acceptable low level. The procedures are a combination of testing the operating effectiveness of internal controls (when appropriate), substantive analytical procedures and other tests of detailed transactions. Having planned our audit, we performed audit procedures, maintaining an appropriate degree of professional skepticism, in order to collect evidence to support our audit opinion. Risks and Planned Audit Responses Based on our knowledge of Historic Downtown Bowmanville Business Improvement Area's business, our past experience, and knowledge gained from management and you, we identified the following financial statement areas with significant risks; those risks of material misstatement that, in our judgment, required special consideration. These risks arose mainly because of the complexity of the accounting rules, the extent of estimation and judgment involved in the valuation of these financial statement areas, and the existence of new accounting pronouncements that affect them. Revenue • Agreed the tax levy to bank deposits. Lack of Segregation of Duties • Agreed board payments to T4A's provided by the municipality. • Reviewed expenses to board members in our test of purchases. Page 2 of 8 Page 42 Materiality Misstatements, including omitted financial statement disclosures, are considered to be material if they, individually or in aggregate, could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Judgments about materiality are made in light of surrounding circumstances and include an assessment of both quantitative and qualitative factors and can be affected by the size or nature of a misstatement, or a combination of both. For purposes of our audit, preliminary materiality was set at $25,000 for the year ended December 31, 2022. We communicated all corrected and uncorrected misstatements identified during our audit to the Board of Directors, other than those which we determined to be "clearly trivial". Misstatements are considered to be clearly trivial for purposes of the audits when they are inconsequential both individually and in aggregate. We encouraged management to correct any misstatements identified throughout the audit process. Independence Our annual communication confirming our independence is included as an Appendix. We are not aware of any relationships between the entity and us that, in our professional judgment, may reasonably be thought to bear on our independence to date. Auditor's Considerations of Possible Fraud and Illegal Activities We are responsible for planning and performing the audit to obtain reasonable assurance that the financial statements are free of material misstatements, whether caused by error or fraud, by: ► Identifying and assessing the risks of material misstatement due to fraud; ► Obtaining sufficient and appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and ► Responding appropriately to fraud or suspected fraud identified during the audit. The likelihood of not detecting a material misstatement resulting from fraud is higher than the likelihood of not detecting a material misstatement resulting from error because fraud may involve collusion as well as sophisticated and carefully organized schemes designed to conceal it. During the audit, we performed risk assessment procedures and related activities to obtain an understanding of the entity and its environment, including the Company's internal control, to obtain information for use in identifying the risks of material misstatement due to fraud and made inquiries of management regarding: Page 3 of 8 Page 43 ► Management's assessment of the risk that the financial statements may be materially misstated due to fraud, including the nature, extent and frequency of such assessments; ► Management's process for identifying and responding to the risks of fraud in the Company, including any specific risks of fraud that management has identified or that have been brought to its attention, or classes of transactions, account balances, or disclosures for which a risk of fraud is likely to exist; ► Management's communication, if any, to those charged with governance regarding its processes for identifying and responding to the risks of fraud in Historic Downtown Bowmanville Business Improvement Area; and ► Management's communication, if any, to employees regarding its view on business practices and ethical behaviour. In response to our risk assessment and our inquiries of management, we performed procedures to address the assessed risks, which may have included: ► Inquired of management, the Board of Directors, and others related to any knowledge of fraud, suspected fraud or alleged fraud; ► Performed disaggregated analytical procedures and consider unusual or unexpected relationships identified in the planning of our audit; ► Incorporated an element of unpredictability in the selection of the nature, timing and extent of our audit procedures; and ► Performed additional required procedures to address the risk of management's override of controls including: o Testing internal controls designed to prevent and detect fraud; o Testing the appropriateness of a sample of adjusting journal entries and other adjustments for evidence of the possibility of material misstatement due to fraud; o Reviewing accounting estimates for biases that could result in material misstatements due to fraud, including a retrospective review of significant prior years' estimates; and o Evaluated the business rationale for significant unusual transactions. Adjusted and Unadjusted Differences We have disclosed all significant adjusted and unadjusted differences and disclosure omissions identified through the course of our audit engagement. Each of these items, if any, has been discussed with Management. Management has determined that the unadjusted differences, if any, are immaterial both individually and in aggregate to the financial statements taken as a whole. Should the Board of Directors agree with this assessment, we do not propose further adjustments. Page 4 of 8 Page 44 Significant Findings, Accounting Policies, Estimates and Judgments Management is responsible for determining the significant accounting policies. The choice of different accounting policy alternatives can have a significant effect on the financial position and results of operations of the Organization. The application of those policies often involves significant estimates and judgments by management. Our comments below are intended to provide you with some thoughts on the qualitative aspects of the significant accounting policies chosen by management, and the significant estimates and judgements made by management, so that you can assess the appropriateness of management's choices. Revenue Recognition Taxation revenue is recorded when earned and is based on a special assessment. Other revenues are recorded in the period in which transactions or events occurred that gave rise to the revenues. Based on our procedures performed we note that these policies are appropriate. We are of the view that nothing has come to our attention that indicates that the significant accounting policies, estimates and judgments made by management are not reasonable in the context of the financial statements taken as a whole. Management Representations During the course of the audit, management made certain representations to us. These representations were verbal or written and therefore explicit, or they were implied through the financial statements. Management provided representations in response to specific queries from us, as well as unsolicited representations. Such representations were part of the evidence gathered by us to be able to draw reasonable conclusions on which to base the audit opinion. These representations were documented by including in the audit working papers memoranda of discussions with management and written representations received from management. A summary of the representations we have requested from management is set out in the management representation letter included in Appendix B to the report. Page 5 of 8 Page 45 Management Letter We have submitted to management a letter on internal controls and other matters that we feel should be brought to their attention. We would be pleased to discuss with you the contents of this report and any other matters that you consider appropriate. Yours truly, C;4 .0 y Trina Connell, CPA, CA Partner BDO Canada LLP Chartered Professional Accountants, Licensed Public Accountants Page 6 of 8 Page 46 Final Report for Historic Downtown Bowmanville Business Improvement Area For the year ended December 31, 2022 APPENDIX A: INDEPENDENCE June 19, 2023 Dear Board of Directors Members: At the core of the provision of external audit services is the concept of independence. We are communicating all relationships between BDO Canada LLP and its related entities and Historic Downtown Bowmanville Business Improvement Area and its related entities that, in our professional judgment, may reasonably be thought to have influenced our independence during the audit. In determining which relationships to report, we have considered the applicable legislation and relevant rules of professional conduct and related interpretations prescribed by the appropriate provincial institute/order covering such matters as the following: • Holding a financial interest, either directly or indirectly in a client; • Holding a position, either directly or indirectly, that gives the right or responsibility to exert significant Influence over the financial or accounting policies of a client; • Personal or business relationships of immediate family, close relatives, partners or retired partners, either directly or indirectly, with a client; • Economic dependence on a client; and • Provision of services in addition to the audit. We have prepared the following comments to facilitate our discussion with you regarding independence matters. We are not aware of any relationships between the entity and us that, in our professional judgment, may reasonably be thought to bear on our independence to date. We hereby confirm that we are independent with respect to the entity within the meaning of the Code of Professional Conduct of the Chartered Professional Accountants of Ontario as of June 9, 2023. This communication is intended solely for the use of the Board of Directors, management and others with the entity and should not be used for any other purposes. Yours truly, 800 Ga*La da, LL. P Chartered Professional Accountants, Licensed Public Accountants Page 7 of 8 Page 47 SRO APPENDIX B: REPRESENTATIONS LETTER Page 8 of 8 Historic Downtown Bowmanville Business Improvement Area 40 Temperance Street Bowmanville, ON L1 C 3A6 June 19, 2023 BDO Canada LLP Chartered Professional Accountants 165 Kent Street West P.O. Box 358 Lindsay Ontario K9V 4S3 This representation letter is provided in connection with your audit of the financial statements of Historic Downtown Bowmanville Business Improvement Area for the year ended December 31, 2022, for the purpose of expressing an opinion as to whether the financial statements are presented fairly, in all material respects, in accordance with Canadian Public Sector Accounting Standards. We confirm that to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves: Financial Statements We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated January 3, 2023, for the preparation of the financial statements in accordance with Canadian Public Sector Accounting Standards; in particular, the financial statements are fairly presented in accordance therewith. • The methods, significant assumptions, and data used in making accounting estimates and their related disclosures are appropriate to achieve recognition, measurement and/or disclosure that are reasonable in accordance with Canadian Public Sector Accounting Standards. • Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of Canadian Public Sector Accounting Standards. • All events subsequent to the date of the financial statements and for which Canadian Public Sector Accounting Standards require adjustment or disclosure have been adjusted or disclosed. • The financial statements of the entity use appropriate accounting policies that have been properly disclosed and consistently applied. • The effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements as a whole. A list of the uncorrected misstatements is attached to the representation letter. Information Provided • We have provided you with: • access to all information of which we are aware that is relevant to the preparation of the financial statements, such as records, documentation and other matters; • additional information that you have requested from us for the purpose of the audit; and • unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. Page 49 • We are responsible for the design, implementation and maintenance of internal controls to prevent, detect and correct fraud and error, and have communicated to you all deficiencies in internal control of which we are aware. • All transactions have been recorded in the accounting records and are reflected in the financial statements. • We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements. • We have disclosed to you the identity of the entity's related parties and all the related party relationships and transactions of which we are aware. Fraud and Error • We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. • We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves: • management; • employees who have significant roles in internal control; or • others where the fraud could have a material effect on the financial statements. • We have disclosed to you all information in relation to allegations of fraud, or suspected fraud, affecting the entity's financial statements communicated by employees, former employees, analysts, regulators, or others. General Representations • Where the value of any asset has been impaired, an appropriate provision has been made in the financial statements or has otherwise been disclosed to you. • We have provided you with significant assumptions that in our opinion are reasonable and appropriately reflect our intent and ability to carry out specific courses of action on behalf of the entity when relevant to the use of fair value measurements or disclosures in the financial statements. • We confirm that there are no derivatives or off -balance sheet financial instruments held at year end that have not been properly recorded or disclosed in the financial statements. • There have been no plans or intentions that may materially affect the recognition, measurement, presentation or disclosure of assets and liabilities (actual and contingent). • The nature of all material uncertainties have been appropriately measured and disclosed in the financial statements, including all estimates where it is reasonably possible that the estimate will change in the near term and the effect of the change could be material to the financial statements. • There were no direct contingencies or provisions (including those associated with guarantees or indemnification provisions), unusual contractual obligations nor any substantial commitments, whether oral or written, other than in the ordinary course of business, which would materially Page 50 affect the financial statements or financial position of the entity, except as disclosed in the financial statements. Other Representations Where the Situation Exists We have informed you of all known actual or possible litigation and claims, whether or not they have been discussed with legal counsel. Since there are no actual, outstanding or possible litigation and claims, no disclosure is required in the financial statements. Yours truly, Signature Position Signature Position Page 51 Bowmanville Business Improvement Area Summary of Unadjusted Misstatements December 31, 2022 Proposed Adjustments Description of Misstatement Identified Misstatements Projections of Identified Misstatements Estimates Assets Dr(Cr) Liabilities Dr(Cr) Opening R/E Dr(Cr) Income Dr(Cr) Salvation Army amount dated January 20, 2023 2,496 (2,496) 2,496 Likely Aggregate Misstatements Before Effect of Previous Year's Errors and Estimates 2,496 (2,496) 2,496 Effect of Previous Year's Errors Likely Aggregate Misstatements (2,496) 2,496 Details of why no adjustment has been made to the financial statements for the above items: Amount is not material to adjust Page 52 JBDO 705 3243579 Canada LLP 705 3240774 0774 165 165 Kent Street W 1 800 955 1509 PO Box 358 www.bdo.ca Lindsay ON K9V 4S3 June 19, 2023 Newcastle Central Business District Improvement Area 40 Temperance Street Bowmanville, ON L1 C 3A6 Re: Report to the Audit committee for the year ending December 31, 2022 Dear Board of Directors: Our report is designed to highlight and explain key issues which we believe to be relevant to the audit, including audit risks, the nature, extent, timing, and results of our audit work and the terms of our engagement. This report forms a significant part of our overall communication strategy with the Board of Directors and is designed to promote effective two-way communication throughout the audit process so that we may both share timely information. We are communicating only those matters of governance interest that come to our attention as a result of the performance of the audit. We are not required to design audit procedures for the specific purpose of identifying matters of governance interest. Our audit and therefore this report will not necessarily identify all matters that may be of interest to the Board of Directors in fulfilling its responsibilities. This report has been prepared solely for the use of the Board of Directors and should not be distributed without our prior consent. Consequently, we accept no responsibility to a third party that uses this communication. Terms of Reference Our overall responsibility is to form and express an opinion on the financial statements based on our audit procedures. The financial statements are prepared by management, with oversight by those charged with governance. The audit of the financial statements does not relieve management or those charged with governance of their responsibilities. The scope of our work, as confirmed in our engagement letter is set out below. Engagement Objectives ► Forming and expressing an audit opinion on the financial statements. ► Present significant findings to the Board of Directors including key audit and accounting issues, any significant deficiencies in internal control and any other significant matters arising from our work. ► Provide timely and constructive management letters. This will include deficiencies in internal control identified during our audit. ► Consult regarding accounting matters are requested throughout the year. ► Work with management towards the timely issuance of financial statements. Page 1 of 7 BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms Page 53 Audit Strategy Our overall audit strategy involved extensive partner and manager involvement in all aspects of the planning and execution of the audit and was based on our overall understanding of Newcastle Central Business District Improvement Area. We performed a risk based audit which allows us to focus our audit effort on higher risk areas and other areas of concern for management and the Board of Directors. To assess risk accurately, we gained a detailed understanding of Newcastle Central Business District Improvement Area's business and the environment it operates in. This allowed us to identify, assess and respond to the risks of material misstatement. To identify, assess and respond to risk, we obtained an understanding of the system of internal control in place in order to consider the adequacy of these controls as a basis for the preparation of the financial statements, to determine whether adequate accounting records have been maintained and to assess the adequacy of these controls and records as a basis upon which to design and undertake our audit testing. Based on our risk assessment, we designed an appropriate audit strategy to obtain sufficient assurance to enable us to report on the financial statements. We chose audit procedures that we believed were the most effective and efficient to reduce audit risk to an acceptable low level. The procedures are a combination of testing the operating effectiveness of internal controls (when appropriate), substantive analytical procedures and other tests of detailed transactions. Having planned our audit, we performed audit procedures, maintaining an appropriate degree of professional skepticism, in order to collect evidence to support our audit opinion. Risks and Planned Audit Responses Based on our knowledge of Newcastle Central Business District Improvement Area's business, our past experience, and knowledge gained from management and you, we identified the following financial statement areas with significant risks; those risks of material misstatement that, in our judgment, required special consideration. These risks arose mainly because of the complexity of the accounting rules, the extent of estimation and judgment involved in the valuation of these financial statement areas, and the existence of new accounting pronouncements that affect them. PerformedFinancial Statement Areas Audit Procedures Revenue • Agreed the tax levy to bank deposits. Lack of Segregation of Duties Reviewed the invoices for expenses in our test of purchases. Cash Cutoff Reviewed bank statements in 2022 and agreed tested amounts after year end to support to ensure they were recorded in the correct year. Page 2 of 7 Page 54 Materiality Misstatements, including omitted financial statement disclosures, are considered to be material if they, individually or in aggregate, could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Judgments about materiality are made in light of surrounding circumstances and include an assessment of both quantitative and qualitative factors and can be affected by the size or nature of a misstatement, or a combination of both. For purposes of our audit, preliminary materiality was set at $1,000 for the year ended December 31, 2022. We communicated all corrected and uncorrected misstatements identified during our audit to the Board of Directors, other than those which we determined to be "clearly trivial". Misstatements are considered to be clearly trivial for purposes of the audits when they are inconsequential both individually and in aggregate. We encouraged management to correct any misstatements identified throughout the audit process. Independence Our annual communication confirming our independence is included as an Appendix. We are not aware of any relationships between the entity and us that, in our professional judgment, may reasonably be thought to bear on our independence to date. Auditor's Considerations of Possible Fraud and Illegal Activities We are responsible for planning and performing the audit to obtain reasonable assurance that the financial statements are free of material misstatements, whether caused by error or fraud, by: ► Identifying and assessing the risks of material misstatement due to fraud; ► Obtaining sufficient and appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and ► Responding appropriately to fraud or suspected fraud identified during the audit. The likelihood of not detecting a material misstatement resulting from fraud is higher than the likelihood of not detecting a material misstatement resulting from error because fraud may involve collusion as well as sophisticated and carefully organized schemes designed to conceal it. During the audit, we performed risk assessment procedures and related activities to obtain an understanding of the entity and its environment, including the Company's internal control, to obtain information for use in identifying the risks of material misstatement due to fraud and made inquiries of management regarding: ► Management's assessment of the risk that the financial statements may be materially misstated due to fraud, including the nature, extent and frequency of such assessments; ► Management's process for identifying and responding to the risks of fraud in the Page 3 of 7 Page 55 Company, including any specific risks of fraud that management has identified or that have been brought to its attention, or classes of transactions, account balances, or disclosures for which a risk of fraud is likely to exist; ► Management's communication, if any, to those charged with governance regarding its processes for identifying and responding to the risks of fraud in Newcastle Central Business District Improvement Area; and ► Management's communication, if any, to employees regarding its view on business practices and ethical behaviour. In response to our risk assessment and our inquiries of management, we performed procedures to address the assessed risks, which may have included: ► Inquired of management, the Board of Directors, and others related to any knowledge of fraud, suspected fraud or alleged fraud; ► Performed disaggregated analytical procedures and consider unusual or unexpected relationships identified in the planning of our audit; ► Incorporated an element of unpredictability in the selection of the nature, timing and extent of our audit procedures; and ► Performed additional required procedures to address the risk of management's override of controls including: o Testing internal controls designed to prevent and detect fraud; o Testing the appropriateness of a sample of adjusting journal entries and other adjustments for evidence of the possibility of material misstatement due to fraud; o Reviewing accounting estimates for biases that could result in material misstatements due to fraud, including a retrospective review of significant prior years' estimates; and o Evaluated the business rationale for significant unusual transactions. Adjusted and Unadjusted Differences There were no significant adjusted and unadjusted differences and disclosure omissions identified through the course of our audit engagement. Significant Findings, Accounting Policies, Estimates and Judgments Management is responsible for determining the significant accounting policies. The choice of different accounting policy alternatives can have a significant effect on the financial position and results of operations of the Organization. The application of those policies often involves significant estimates and judgments by management. Our comments below are intended to provide you with some thoughts on the qualitative aspects of the significant accounting policies chosen by management, and the significant estimates and judgements made by management, so that you can assess the appropriateness of management's choices. Revenue Recognition Taxation revenue is recorded when earned and is based on a special assessment. Other revenues are recorded in the period Page 4 of 7 Page 56 in which transactions or events occurred that gave rise to the revenues. Based on our procedures performed we note that these policies are appropriate. We are of the view that nothing has come to our attention that indicates that the significant accounting policies, estimates and judgments made by management are not reasonable in the context of the financial statements taken as a whole. Management Representations During the course of the audit, management made certain representations to us. These representations were verbal or written and therefore explicit, or they were implied through the financial statements. Management provided representations in response to specific queries from us, as well as unsolicited representations. Such representations were part of the evidence gathered by us to be able to draw reasonable conclusions on which to base the audit opinion. These representations were documented by including in the audit working papers memoranda of discussions with management and written representations received from management. A summary of the representations we have requested from management is set out in the management representation letter included in Appendix B to the report. Management Letter We have submitted to management a letter on internal controls and other matters that we feel should be brought to their attention. We would be pleased to discuss with you the contents of this report and any other matters that you consider appropriate. Yours truly, Trina Connell, CPA, CA Partner BDO Canada LLP Chartered Professional Accountants, Licensed Public Accountants Page 5 of 7 Page 57 Final Report for Newcastle Central Business District Improvement Area For the year ended December 31, 2022 APPENDIX A: INDEPENDENCE June 19, 2023 Dear Board of Directors Members: At the core of the provision of external audit services is the concept of independence. We are communicating all relationships between BDO Canada LLP and its related entities and Newcastle Central Business District Improvement Area and its related entities that, in our professional judgment, may reasonably be thought to have influenced our independence during the audit. In determining which relationships to report, we have considered the applicable legislation and relevant rules of professional conduct and related interpretations prescribed by the appropriate provincial institute/order covering such matters as the following: Holding a financial interest, either directly or indirectly in a client; Holding a position, either directly or indirectly, that gives the right or responsibility to exert significant Influence over the financial or accounting policies of a client; Personal or business relationships of immediate family, close relatives, partners or retired partners, either directly or indirectly, with a client; • Economic dependence on a client; and • Provision of services in addition to the audit. We have prepared the following comments to facilitate our discussion with you regarding independence matters. We are not aware of any relationships between the entity and us that, in our professional judgment, may reasonably be thought to bear on our independence to date. We hereby confirm that we are independent with respect to the entity within the meaning of the Code of Professional Conduct of the Chartered Professional Accountants of Ontario as of June 19, 2023. This communication is intended solely for the use of the Board of Directors, management and others with the entity and should not be used for any other purposes. Yours truly, Soo C I � LL P Chartered Professional Accountants, Licensed Public Accountants Page 6 of 7 Page 58 JBDO APPENDIX B: REPRESENTATIONS LETTER Page 7 of 7 Page 59 Newcastle Central Business District Improvement Area 40 Temperance Street Bowmanville, ON L1 C 3A6 June 19, 2023 BDO Canada LLP Chartered Professional Accountants 165 Kent Street West P.O. Box 358 Lindsay Ontario K9V 4S3 This representation letter is provided in connection with your audit of the financial statements of Newcastle Central Business District Improvement Area for the year ended December 31, 2022, for the purpose of expressing an opinion as to whether the financial statements are presented fairly, in all material respects, in accordance with Canadian Public Sector Accounting Standards. We confirm that to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves: Financial Statements We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated January 3, 2023, for the preparation of the financial statements in accordance with Canadian Public Sector Accounting Standards; in particular, the financial statements are fairly presented in accordance therewith. • The methods, significant assumptions, and data used in making accounting estimates and their related disclosures are appropriate to achieve recognition, measurement and/or disclosure that are reasonable in accordance with Canadian Public Sector Accounting Standards. • Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of Canadian Public Sector Accounting Standards. • All events subsequent to the date of the financial statements and for which Canadian Public Sector Accounting Standards require adjustment or disclosure have been adjusted or disclosed. • The financial statements of the entity use appropriate accounting policies that have been properly disclosed and consistently applied. Information Provided • We have provided you with: • access to all information of which we are aware that is relevant to the preparation of the financial statements, such as records, documentation and other matters; • additional information that you have requested from us for the purpose of the audit; and • unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. • We are responsible for the design, implementation and maintenance of internal controls to prevent, detect and correct fraud and error, and have communicated to you all deficiencies in internal control of which we are aware. Page 60 All transactions have been recorded in the accounting records and are reflected in the financial statements. We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements. We have disclosed to you the identity of the entity's related parties and all the related party relationships and transactions of which we are aware. Fraud and Error We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves: management; employees who have significant roles in internal control; or others where the fraud could have a material effect on the financial statements. We have disclosed to you all information in relation to allegations of fraud, or suspected fraud, affecting the entity's financial statements communicated by employees, former employees, analysts, regulators, or others. General Representations • Where the value of any asset has been impaired, an appropriate provision has been made in the financial statements or has otherwise been disclosed to you. • We have provided you with significant assumptions that in our opinion are reasonable and appropriately reflect our intent and ability to carry out specific courses of action on behalf of the entity when relevant to the use of fair value measurements or disclosures in the financial statements. • There have been no plans or intentions that may materially affect the recognition, measurement, presentation or disclosure of assets and liabilities (actual and contingent). • The nature of all material uncertainties have been appropriately measured and disclosed in the financial statements, including all estimates where it is reasonably possible that the estimate will change in the near term and the effect of the change could be material to the financial statements. Other Representations Where the Situation Exists We have informed you of all known actual or possible litigation and claims, whether or not they have been discussed with legal counsel. Since there are no actual, outstanding or possible litigation and claims, no disclosure is required in the financial statements. Page 61 Yours truly, Signature Position Signature Position Page 62 JBDO 705 3243579 Canada LLP 705 3240774 0774 165 165 Kent Street W 1 800 955 1509 PO Box 358 www.bdo.ca Lindsay ON K9V 4S3 June 19, 2023 Orono Central Business District Improvement Area 40 Temperance Street Bowmanville, ON L1 C 3A6 Re: Report to the Audit committee for the year ending December 31, 2022 Dear Board of Directors: Our report is designed to highlight and explain key issues which we believe to be relevant to the audit, including audit risks, the nature, extent, timing, and results of our audit work and the terms of our engagement. This report forms a significant part of our overall communication strategy with the Board of Directors and is designed to promote effective two-way communication throughout the audit process so that we may both share timely information. We are communicating only those matters of governance interest that come to our attention as a result of the performance of the audit. We are not required to design audit procedures for the specific purpose of identifying matters of governance interest. Our audit and therefore this report will not necessarily identify all matters that may be of interest to the Board of Directors in fulfilling its responsibilities. This report has been prepared solely for the use of the Board of Directors and should not be distributed without our prior consent. Consequently, we accept no responsibility to a third party that uses this communication. Terms of Reference Our overall responsibility is to form and express an opinion on the financial statements based on our audit procedures. The financial statements are prepared by management, with oversight by those charged with governance. The audit of the financial statements does not relieve management or those charged with governance of their responsibilities. The scope of our work, as confirmed in our engagement letter is set out below. Engagement Objectives ► Forming and expressing an audit opinion on the financial statements. ► Present significant findings to the Board of Directors including key audit and accounting issues, any significant deficiencies in internal control and any other significant matters arising from our work. ► Provide timely and constructive management letters. This will include deficiencies in internal control identified during our audit. ► Consult regarding accounting matters are requested throughout the year. ► Work with management towards the timely issuance of financial statements. Page 1 of 7 BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms Page 63 JBDO Audit Strategy Our overall audit strategy involved extensive partner and manager involvement in all aspects of the planning and execution of the audit and was based on our overall understanding of Orono Central Business District Improvement Area. We performed a risk based audit which allows us to focus our audit effort on higher risk areas and other areas of concern for management and the Board of Directors. To assess risk accurately, we gained a detailed understanding of Orono Central Business District Improvement Area's business and the environment it operates in. This allowed us to identify, assess and respond to the risks of material misstatement. To identify, assess and respond to risk, we obtained an understanding of the system of internal control in place in order to consider the adequacy of these controls as a basis for the preparation of the financial statements, to determine whether adequate accounting records have been maintained and to assess the adequacy of these controls and records as a basis upon which to design and undertake our audit testing. Based on our risk assessment, we designed an appropriate audit strategy to obtain sufficient assurance to enable us to report on the financial statements. We chose audit procedures that we believed were the most effective and efficient to reduce audit risk to an acceptable low level. The procedures are a combination of testing the operating effectiveness of internal controls (when appropriate), substantive analytical procedures and other tests of detailed transactions. Having planned our audit, we performed audit procedures, maintaining an appropriate degree of professional skepticism, in order to collect evidence to support our audit opinion. Risks and Planned Audit Responses Based on our knowledge of Orono Central Business District Improvement Area's business, our past experience, and knowledge gained from management and you, we identified the following financial statement areas with significant risks; those risks of material misstatement that, in our judgment, required special consideration. These risks arose mainly because of the complexity of the accounting rules, the extent of estimation and judgment involved in the valuation of these financial statement areas, and the existence of new accounting pronouncements that affect them. Revenue • Agreed the tax levy to bank deposits. Lack of Segregation of Duties Reviewed expenses and agreed to invoices in our test of purchases. Cash Cutoff Reviewed bank statements in 2023 and agreed larger balances to support to ensure they were recorded in the Page 2 of 7 Page 64 correct year. Donation and Grant Revenue Reviewed deposits and vouched significant donations or grants to supporting documentation. Materiality Misstatements, including omitted financial statement disclosures, are considered to be material if they, individually or in aggregate, could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Judgments about materiality are made in light of surrounding circumstances and include an assessment of both quantitative and qualitative factors and can be affected by the size or nature of a misstatement, or a combination of both. For purposes of our audit, preliminary materiality was set at $1,000 for the year ended December 31, 2022. We communicated all corrected and uncorrected misstatements identified during our audit to the Board of Directors, other than those which we determined to be "clearly trivial". Misstatements are considered to be clearly trivial for purposes of the audits when they are inconsequential both individually and in aggregate. We encouraged management to correct any misstatements identified throughout the audit process. Independence Our annual communication confirming our independence is included as an Appendix. We are not aware of any relationships between the entity and us that, in our professional judgment, may reasonably be thought to bear on our independence to date. Auditor's Considerations of Possible Fraud and Illegal Activities We are responsible for planning and performing the audit to obtain reasonable assurance that the financial statements are free of material misstatements, whether caused by error or fraud, by: ► Identifying and assessing the risks of material misstatement due to fraud; ► Obtaining sufficient and appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and ► Responding appropriately to fraud or suspected fraud identified during the audit. The likelihood of not detecting a material misstatement resulting from fraud is higher than the likelihood of not detecting a material misstatement resulting from error because fraud may involve collusion as well as sophisticated and carefully organized schemes designed to conceal it. During the audit, we performed risk assessment procedures and related activities to obtain an understanding of the entity and its environment, including the Organization's internal control, to obtain information for use in identifying the risks of material misstatement due to fraud and made inquiries of management regarding: Page 3 of 7 Page 65 ► Management's assessment of the risk that the financial statements may be materially misstated due to fraud, including the nature, extent and frequency of such assessments; ► Management's process for identifying and responding to the risks of fraud in the Organization, including any specific risks of fraud that management has identified or that have been brought to its attention, or classes of transactions, account balances, or disclosures for which a risk of fraud is likely to exist; ► Management's communication, if any, to those charged with governance regarding its processes for identifying and responding to the risks of fraud in Orono Central Business District Improvement Area; and ► Management's communication, if any, to employees regarding its view on business practices and ethical behaviour. In response to our risk assessment and our inquiries of management, we performed procedures to address the assessed risks, which may have included: ► Inquired of management, the Board of Directors, and others related to any knowledge of fraud, suspected fraud or alleged fraud; ► Performed disaggregated analytical procedures and consider unusual or unexpected relationships identified in the planning of our audit; ► Incorporated an element of unpredictability in the selection of the nature, timing and extent of our audit procedures; and ► Performed additional required procedures to address the risk of management's override of controls including: o Testing internal controls designed to prevent and detect fraud; o Testing the appropriateness of a sample of adjusting journal entries and other adjustments for evidence of the possibility of material misstatement due to fraud; o Reviewing accounting estimates for biases that could result in material misstatements due to fraud, including a retrospective review of significant prior years' estimates; and o Evaluated the business rationale for significant unusual transactions. Adjusted and Unadjusted Differences There were no significant adjusted and unadjusted differences and disclosure omissions identified through the course of our audit engagement. Significant Findings, Accounting Policies, Estimates and Judgments Management is responsible for determining the significant accounting policies. The choice of different accounting policy alternatives can have a significant effect on the financial position and results of operations of the Organization. The application of those policies often involves significant estimates and judgments by management. Our comments below are intended to provide you with some thoughts on the qualitative aspects of the significant accounting policies chosen by management, and the significant estimates and judgements made by management, so that you can assess the appropriateness of management's choices. Page 4 of 7 Page 66 Revenue Recognition Taxation revenue is recorded when earned and is based on a special assessment. Other revenues are recorded in the period in which transactions or events occurred that gave rise to the revenues. Based on our procedures performed we note that these policies are appropriate. We are of the view that nothing has come to our attention that indicates that the significant accounting policies, estimates and judgments made by management are not reasonable in the context of the financial statements taken as a whole. Management Representations During the course of the audit, management made certain representations to us. These representations were verbal or written and therefore explicit, or they were implied through the financial statements. Management provided representations in response to specific queries from us, as well as unsolicited representations. Such representations were part of the evidence gathered by us to be able to draw reasonable conclusions on which to base the audit opinion. These representations were documented by including in the audit working papers memoranda of discussions with management and written representations received from management. A summary of the representations we have requested from management is set out in the management representation letter included in Appendix B to the report. Management Letter We have submitted to management a letter on internal controls and other matters that we feel should be brought to their attention. We would be pleased to discuss with you the contents of this report and any other matters that you consider appropriate. Yours truly, Trina Connell, CPA, CA Partner BDO Canada LLP Chartered Professional Accountants, Licensed Public Accountants Page 5 of 7 Page 67 Final Report for Orono Central Business District Improvement Area For the year ended December 31, 2022 APPENDIX A: INDEPENDENCE June 19, 2023 Dear Board of Directors Members: At the core of the provision of external audit services is the concept of independence. We are communicating all relationships between BDO Canada LLP and its related entities and Orono Central Business District Improvement Area and its related entities that, in our professional judgment, may reasonably be thought to have influenced our independence during the audit. In determining which relationships to report, we have considered the applicable legislation and relevant rules of professional conduct and related interpretations prescribed by the appropriate provincial institute/order covering such matters as the following: Holding a financial interest, either directly or indirectly in a client; Holding a position, either directly or indirectly, that gives the right or responsibility to exert significant Influence over the financial or accounting policies of a client; Personal or business relationships of immediate family, close relatives, partners or retired partners, either directly or indirectly, with a client; • Economic dependence on a client; and • Provision of services in addition to the audit. We have prepared the following comments to facilitate our discussion with you regarding independence matters. We are not aware of any relationships between the entity and us that, in our professional judgment, may reasonably be thought to bear on our independence to date. We hereby confirm that we are independent with respect to the entity within the meaning of the Code of Professional Conduct of the Chartered Professional Accountants of Ontario as of June 19, 2023. This communication is intended solely for the use of the Board of Directors, management and others with the entity and should not be used for any other purposes. Yours truly, 800 C4ftada LL P Chartered Professional Accountants, Licensed Public Accountants Page 6 of 7 Page 68 SRO APPENDIX B: REPRESENTATIONS LETTER Page 7 of 7 Page 69 Orono Central Business District Improvement Area 40 Temperance Street Bowmanville, ON L1 C 3A6 June 19, 2023 BDO Canada LLP Chartered Professional Accountants 165 Kent Street West P.O. Box 358 Lindsay Ontario K9V 4S3 This representation letter is provided in connection with your audit of the financial statements of Orono Central Business District Improvement Area for the year ended December 31, 2022, for the purpose of expressing an opinion as to whether the financial statements are presented fairly, in all material respects, in accordance with Canadian Public Sector Accounting Standards. We confirm that to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves: Financial Statements We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated January 3, 2023 for the preparation of the financial statements in accordance with Canadian Public Sector Accounting Standards; in particular, the financial statements are fairly presented in accordance therewith. • The methods, significant assumptions, and data used in making accounting estimates and their related disclosures are appropriate to achieve recognition, measurement and/or disclosure that are reasonable in accordance with Canadian Public Sector Accounting Standards. • Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of Canadian Public Sector Accounting Standards. • All events subsequent to the date of the financial statements and for which Canadian Public Sector Accounting Standards require adjustment or disclosure have been adjusted or disclosed. • The financial statements of the entity use appropriate accounting policies that have been properly disclosed and consistently applied. Information Provided • We have provided you with: • access to all information of which we are aware that is relevant to the preparation of the financial statements, such as records, documentation and other matters; • additional information that you have requested from us for the purpose of the audit; and • unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. • We are responsible for the design, implementation and maintenance of internal controls to prevent, detect and correct fraud and error, and have communicated to you all deficiencies in internal control of which we are aware. Page 70 • All transactions have been recorded in the accounting records and are reflected in the financial statements. • We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements. • We have disclosed to you the identity of the entity's related parties and all the related party relationships and transactions of which we are aware. Fraud and Error • We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. • We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves: • management; • employees who have significant roles in internal control; or • others where the fraud could have a material effect on the financial statements. • We have disclosed to you all information in relation to allegations of fraud, or suspected fraud, affecting the entity's financial statements communicated by employees, former employees, analysts, regulators, or others. General Representations • Where the value of any asset has been impaired, an appropriate provision has been made in the financial statements or has otherwise been disclosed to you. • We have provided you with significant assumptions that in our opinion are reasonable and appropriately reflect our intent and ability to carry out specific courses of action on behalf of the entity when relevant to the use of fair value measurements or disclosures in the financial statements. • Except as disclosed in the financial statements, there have been no changes to title, control over assets, liens or assets pledged as security for liabilities or collateral. • The entity has complied with all provisions in its agreements related to debt and there were no defaults in principal or interest, or in the covenants and conditions contained in such agreements. • There have been no plans or intentions that may materially affect the recognition, measurement, presentation or disclosure of assets and liabilities (actual and contingent). • The nature of all material uncertainties have been appropriately measured and disclosed in the financial statements, including all estimates where it is reasonably possible that the estimate will change in the near term and the effect of the change could be material to the financial statements. • There were no direct contingencies or provisions (including those associated with guarantees or indemnification provisions), unusual contractual obligations nor any substantial commitments, whether oral or written, other than in the ordinary course of business, which would materially Page 71 affect the financial statements or financial position of the entity, except as disclosed in the financial statements. Other Representations Where the Situation Exists We have informed you of all known actual or possible litigation and claims, whether or not they have been discussed with legal counsel. Since there are no actual, outstanding or possible litigation and claims, no disclosure is required in the financial statements. Yours truly, Signature Position Signature Position Page 72 { redbrick COMMUNICATIONS Municipality of Clarington Communications Service Delivery Review Report June 2023 Andrea Montgomery, APR, Prosci, Vice President Megan Abraham, Communications Consultant www.redbrick.ca Page 3 Ll •11• • 0 • • r-, 777w7)))) DURHAM REGION C0 OAK I LLE Hastings County Supporring Peopfe & Our 05mmunities Mississauca Wridpailies Ontario tyears. —0�4— PICR1NG CawrvvF SIMCOEAS lw Innif1[ Ontario CV) MILTON Page 74 "Iftmo� 00� Northumberland oum ROMA Municipal Associfftion Lndn C AN An A N1 gara ke SAINT JOHN The Ckv of BAME Region of Waterloo Iiagara� Region �trt 4 4tA R -4 { whhLI- r Region d Peed Wonkiwq fbn you. The world has changed. The pace of change is getting faster. le trust. - —,Pmdgw N 6 4 A e, x •19.lqUr4o1". C1 Page 77 40 W PTI 1-1 n w 4r 6� t k 7'o"a� dp� wwA .40 New technologies continue to emerge. Impact on Municipal Communications Stronger foundation Future planning Why this project matters Greater community trust Save taxpayer dollars rd Customer focus Improve staff morale & relationship between staff and Council Page 81 Best practices 1.Trusted 9 strategic advisor 6. Data and measurement for listening and proven outcomes 5. Effective tools/room for innovation .Aligned with corporate strategic plans 3. Supported by strong internal 4. Consistent corporate story/ brand (Customer Service) processes Page 82 What we heard — 0 interr 71� What we heard — Community n Municipal Communications Leaders: Top areas of investment �w 1. Increased team capacity 4� 2. Digital storytelling and transformation 00 3. Public engagement 4. Customer service alignment Page 85 Recommendations #1: Strengthen the communications team structure Page 87 #2: Strengthen Clarington's issues risk management approach #3m. Invest in more purposeful public engagement #4: Increase positive storytelling, the ability to communicate quickly and share timely factual information Page 90 #5m. Establish a stronger communications mindset across the organization Page 91 #6m. Place more focus on internal communications across the corporation Page 92 #7m. Enhance =,Mal I ImMRI lawl, MAM, Imm, MIAMI Ambi %.oiaring-Lu consistei Thank you www.redbrick.ca © 2023 Redbrick Communications Inc. redbrick COMMUNICATIONS Patenaude, Lindsey From: Patenaude, Lindsey Sent: Wednesday, May 24, 2023 3:06 PM To: Patenaude, Lindsey Subject: FW: Pedestrian safety Durham rd 3/01d Scugog intersect From: PHYLLIS MILBURN <pmilburn2000@rogers.com> Sent: Wednesday, May 24, 2023 10:33 AM To: Anderson, Heather <HAnderson@clarington.net> Subject: Re: Pedestrian safety Durham rd 3/01d Scugog intersect [You don't often get email from pmilburn2000@rogers.com. Learn why this is important at https://aka.ms/LearnAboutSenderldentification j EXTERNAL Heather: I'm sending an attachment that I would like to add to my safety issue. It's another recommendation that would help keep pedestrians safe crossing that intersection. Ryan King did respond to my son but I feel the Mayor should know the concerns of the people he represents. Small inexpensive solutions to make pedestrians safe is a better solution until waiting for a fatality to make government act. Thank you Phyllis Milburn Page 95 . 1 y Sent from my iPhone > -----Original Message ----- > From: noreply@clarington.net <noreply@clarington.net> On Behalf Of Phyllis Milburn > Sent: Friday, April 28, 2023 10:46 AM > To: Mayor Shared Mailbox <mayor@clarington.net> > Subject: Pedestrian safety Durham rd 3/Old Scugog intersect > [Some people who received this message don't often get email from pmilburn2000@rogers.com. Learn why this is important at https://aka.ms/LearnAboutSenderldentification ] > EXTERNAL > Mayor Foster: > Safety concerns -Durham Regional Rd 3/Old Scugog Rd intersection in Enniskillen. Currently stop signs, small marked crosswalk & one yield sign turning south to Old Scugog Rd. > Durham Regional Rd 3 is a high traffic highway with heavy dump trucks travelling all day start 5 am. Noise levels very high, 'no engine brake' signs needed threw Enniskillen hamlet. Mailboxes on south side RR#3 by Enniskillen store should be relocated to less busy street. Parking along mail boxes cause traffic jams, often blocking sidewalk. Sidewalks often blocked in front of the Enniskillen General Store. Cement parking stop blocks should be installed in front of the store to provide a barrier free sidewalk. Vehicles park on the median on the south side of RR#3 blocking the view of traffic. > Yield sign travelling south on Old Scugog from RR#3 is too small, often goes unnoticed. That section of road removed, replaced with a proper right turning lane at the stop sign. 80km speeds on RR#3 into a small hamlet causes major concern, unsafe for pedestrians, especially crossing from the southwest side. > Enniskillen Elementary Public School & community playground park on Old Scugog Rd draws children to area. Signage for WATCH FOR CHILDREN should be posted & crossguard with a hand held flashing red light stop sign would be a perfect solution. I have 2 grandchildren under 2 yrs old living in the area & a physically disabled 9 yr old grandson in a wheelchair that visits. On numerous occasions it was extremely challenging going to the park. > Please consider these inexpensive solutions before a pedestrian & especially a child is fatally injured. > I realize some improvements are coming but hearing from residents/visitors will be beneficially helpful in choosing the right solutions. The Enniskillen hamlet has increased exceedingly with all the newly built homes. The General store's license to sell LCBO products have staggeringly congested traffic. > Sincerely > Phyllis Milburn > Origin: https://www.clarington.net/en/town-hall/Mayor.aspx > This email was sent to you by Phyllis Milburn<pmilburn2000@rogers.com> through https://www.clarington.net/. >[clarington]<https://www.clarington.net/> Page 97 Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Joint Committees Date of Meeting: June 19, 2023 Report Number: PWD-005-23 Submitted By: Stephen Brake, Director of Public Works Reviewed By: Mary -Anne Dempster, CAO Resolution#: File Number: By-law Number: Report Subject: Fleet Reserve Request Recommendations: 1. That Report PWD-005-23, and any related delegations or communication items, be received; 2. That Council approve the replacement of two light -duty trucks for $210,000 from the Public Works Equipment Reserve Fund; and 3. That all interested parties listed in Report PWD-005-23, and any delegations be advised of Council's decision. Municipality of Clarington Report PWD-005-23 Report Overview Page 2 The Public Works Department is requesting Council approval to draw on the Public Works Equipment Reserve Fund to replace two one -ton four-wheel drive pickup trucks. These vehicles have reached their end -of -life cycle requiring a significant capital investment for annual safety requirements for continued service. 1. Background 1.1 During our 2023 annual safety inspections, as required with all commercial vehicle operator's registration (CVOR) certifications under the Ministry of Transportation (MTO), it was discovered that two light -duty one -ton pickup trucks will need significant repairs in order to meet the MTO CVOR requirements. Quotes for the required work were obtained, and the repairs' cost significantly exceeded the combined value of both trucks. 1.2 Lifecyle of the vehicles was reviewed, one being purchased in 2012 (12-609) and the other in 2014 (14-560). Both trucks are at or beyond the end of their life cycle as per the Public Works Municipal Vehicles and Equipment Replacement Schedule, which recommends replacement at eight -to -nine-year intervals for light -duty vehicles. 1.3 Existing value of the vehicles was also reviewed, and appraisals were obtained from a local reputable dealership. Due to the current condition, it was expressed that the vehicles would only be worth scrap value. Further cost breakdowns are provided in section three. 2. Truck Use Winter Operations 2.1 Both trucks are utilized for winter control operations and are equipped with a front plow and salt/sanding spreader attachment. These trucks are used by Public Works Labourers and Lead Hands to access areas that are difficult to service by single -axle or tandem -axle combination units. These areas include dead end gravel roads, narrow urban streets with small pavement platforms and small access roads leading to parks or other municipal infrastructure. 2.2 Winter Patrol staff also utilize these vehicles for their scheduled shifts. These vehicles have to ability to provide a quick response to calls often received for spot sanding slippery conditions and snow drift accumulation. Page 99 Municipality of Clarington Report PWD-005-23 Summer Operations Page 3 2.3 Both trucks are also utilized during summer operations by our seasonal staffing compliment. They are routinely used for parks maintenance, refuse collection, storm water pond maintenance, walkway maintenance and all other duties assigned to seasonal staff. 3. Financial Considerations Estimated Cost of Repairs 3.1 The estimated cost to repair truck 12-609 is $6,280.86, while the estimated value in its current condition is $800. The truck has exceeded its anticipated life cycle with a scheduled replacement in 2024. 3.2 The estimated cost to repair truck 14-560 is $9,687.42, while the estimated value in its current condition is $800. The truck has also exceeded its anticipated life cycle with a scheduled replacement in 2024. 3.3 These repairs would allow the vehicle to meet safety requirements for one-year, additional repairs may be necessary in each subsequent year. The repairs may not extend the life of the vehicle. Estimated cost of Replacement 3.4 Estimated cost of replacement for a single one -ton four-wheel drive pickup truck complete with front plow and salt/sand spreader is $105,000. The total estimated replacement cost for both vehicles is $210,000. The Public Works Equipment Reserve fund currently has a balance of $275,618.48 which will cover the estimated replacement cost. 3.5 Replacement of the vehicles will reduce repair costs as the vehicle will be under warranty and will also be newer. The planned replacement was in one year, and the required repairs make replacement a more economically feasible approach. 4. Concurrence This report has been reviewed by the Deputy CAO / Treasurer who concurs with the recommendations. Page100 Municipality of Clarington Report PWD-005-23 5. Conclusion Page 4 Based on the current cost of required repairs, value assessment and asset lifecycle timing, it is respectfully recommended that Council approve the replacement of trucks 12-609 and 14-560 funded from the Public Works Equipment Reserve. Staff Contact: Brett Novak, Manager of Operations, 905-623-3379, Ext. 2909 or bnovak@clarington.net. Attachments: Not Applicable Interested Parties: There are no interested parties to be notified of Council's decision. Page 101 Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: June 19, 2023 Report Number: CSD-002-23 Submitted By: George Acorn, Director of Community Services Reviewed By: Rob Maciver, Deputy CAO/Solicitor Resolution#: File Number: By-law Number: Report Subject: Community Hall Board Sustainability Update Recommendations: 1. That Report CSD-002-23 and any related delegations or communication items, be received; 2. That staff be directed to work with all Non -Consolidated Community Hall Boards, to develop work plans for their incorporation as not -for -profits, that would facilitate entering into formal Municipal Capital Facility agreements with the Municipality; 3. That staff report back to Council with the details of the work plans developed, identify the timelines for incorporation, and provide information on the costs associated for these incorporations; and 4. That all interested parties listed in Report CSD-002-23 and any delegations be advised of Council's decision. Page102 Municipality of Clarington Report CSD-002-23 Report Overview Page 2 This report provides Council with a brief overview of the Hall Board Sustainability project presented during the previous term of Council. In addition to summarizing the status of this work, staff is seeking approval to work with all non -consolidated hall boards to achieve incorporated not -for -profit status. This incorporation would facilitate the creation of operating agreements to formalize the roles and responsibilities of both the volunteer boards and the Municipality. 1. Background 1.1 At the October 25, 2021, Joint Committee Meeting, the Deputy CAO/Treasurer presented Report FSD-049-21 Roadmap for Community Board Sustainability. This report highlighted the ongoing financial challenges that many of our volunteer board - operated community facilities were facing, specifically due to the COVID-19 pandemic and the myriad of closures and public health restrictions put in place. 1.2 At that time, there was a genuine concern what the long-term effects the closures and stricter public health guidelines could have on our volunteer -operated hall boards and the valuable services they provide in their respective communities. 1.3 Throughout the pandemic, Council continued to support community hall and arena boards, including approval of a $60,000 Community COVID-19 Support Program in May 2021. Additionally, approval was given in October 2021, to utilize funds from the Province's COVID-19 Recovery Fund to support screening and vaccination verification costs. At that time, Council also provided funding approval to cover the costs for snow removal at all community facilities for the 2021/22 winter season. The support for snow removal continues, and all associated costs have been included in the 2023 budget. 1.4 Since 1989, when Council approved the dissolution of the above as Boards of Council, the non -consolidated boards have been allowed to operate in a similar fashion as they did historically. Additionally, there remains no formal operating agreements with the non -consolidated boards, apart from a lease arrangement for the Kendal Community Centre. 1.5 Subsequent direction from Council was for staff to work with the non -consolidated boards to incorporate, which would facilitate the execution of some form of operating agreement between the Board and the Municipality. To date that work has not been completed. 1.6 In 2008, the Clerk's Department report CLD-10-08, provided Council the results of their review of existing by-laws that had established Boards under the former Community Recreation Centres Act, 1974, which was repealed in January 2003. This resulted in the establishment of new by-laws under the Municipal Act, 2001 for the creation of Municipal Service Boards for the Solina Community Hall and Tyrone Community Centre. Page103 Municipality of Clarington Report CSD-002-23 Page 3 1.7 In 2014, the Municipal Solicitor's report LGL-008-14, subsequently recommended to Council to re-establish the Newcastle Village Community Hall as a municipal service board under the Municipal Act, 2001. 1.8 The associated by-laws provide that "Council hereby establishes a municipal service board to control and manage the Property as set out in the By-law". These by-laws also establish other operating parameters including the use of the hall, general board mandate, board composition, financial records, and operating repair/maintenance responsibilities. 1.9 In September 2003, Council approved a lease agreement between the Municipality and the Kendal Community Association (COD-37-03), for the use of the Kendal Community Centre. Subsequent lease renewals have been approved by Council and a lease agreement remains in effect today. Regardless of this agreement, it remains the recommendation to consider a Municipal Capital Facility agreement for this hall. 2. Current Situation 2.1 In recent months, Community Services staff have scheduled in -person attendance at hall board meetings. Since taking over liaison responsibilities in September 2020, this represented the first opportunity to meet with the boards in person. Previously most communications have been via email or virtual meetings. 2.2 With the meetings we have attended, a common theme is the positive rebound in community events, rentals and revenues in these buildings, post -pandemic. This is very encouraging news. There is no indication, currently, of the need to consider moving beyond Step 1 of the Roadmap to Financial Sustainability. This will be achieved by having the boards incorporate as not -for -profits and executing capital facility agreements. 2.3 We have also advised all boards that will be affected by the recommendations in this report that we will be seeking direction to initiate plans for next steps and that we will be contacting them to schedule planning meetings. 2.4 At the January 9, 2023, General Government Committee meeting, Report LGS-003-23 Appointments to Various Boards and Committees, was presented. The report recommendations included changes to Municipal Service Board's terms of reference, reducing the number of Councillors sitting on these Boards. For efficiency reasons, staff are not considering the development of additional Municipal Service Boards as part of our work going forward. 2.5 There are seven community halls not established by municipal by-law as municipal service boards, including the Kendal Community Centre. The others are Bowmanville Memorial Park Clubhouse; Brownsdale Community Centre; Hampton Community Hall; Haydon Community Hall; Newtonville Hall; and Orono Town Hall. Page104 Municipality of Clarington Page 4 Report CSD-002-23 2.6 The three community halls operated as municipal service boards, operate under the authority of a Council approved by-law. These by-laws mandate the board to operate and manage the building and clearly identify roles and responsibilities. The by-laws also speak to board composition; meetings protocol, audit, and accountability as well as risk management and insurance, to name a few. 3. Risk Considerations 3.1 Without any formal operating agreements in place, there are questions related to general liability, director's liability and occupational health and safety of the workers and volunteers at these non -consolidated community halls. As we have seen in recent years with the Bowmanville Older Adults Association, the execution of a Municipal Capital Facility Agreement, would better outline the specific responsibilities of a not -for profit hall board and the Municipality. 3.2 There is commercial liability insurance in place for all non -consolidated hall boards. The policies were facilitated with assistance from the Municipality and identify each hall board as the insured party. These boards and their operations are not included in the municipal insurance coverage. Our research indicates these policies have likely been in place since 2000. 3.3 The Municipality is responsible for the cost of the annual premiums. For the current period of August 15, 2022, to August 15, 2023, the total cost for all seven halls was $7,056.00. The policy limits include Bodily Injury and Property Damage ($3M per occurrence) and Total General Aggregate Limit of $5M. An overview of the policy details indicates liability coverage for the members of the hall board and any volunteer workers engaged in hall board operations. 3.4 The Municipality, in terms of the Occupational Health and Safety Act, is not the employer nor the supervisor of these community hall locations. A formal operating agreement would better identify roles and responsibilities for workplace safety. 4. Proposed Next Steps 4.1 Following approval of this report, staff will convene meetings with all non -consolidated hall boards to develop a plan to work toward their incorporation as not -for -profit groups. Staff will provide an overview of the incorporated not -for -profit model, identify the requirements for registration and illustrate the many benefits that could arise from this operating model. The results of this work will be summarized and will form the background for reporting back to Council. 4.2 Not -for -profit corporations provide products or services to improve or benefit a community. These organizations are usually concerned with generating enough revenue to support their chosen community. Any money made by a not -for -profit is not for the personal gain of its directors, members, or officers, but goes back into the organization to further its aims and projects. Page 105 Municipality of Clarington Page 5 Report CSD-002-23 4.3 Staff will also be working on draft language for the future Municipal Capital Facility agreements using existing agreements as a template. 5. Financial Considerations Operating Costs 5.1 There is no recommendation to revise the current annual financial support model provided to hall boards at this time. Any request for increased operating funds would be directed to Financial Services and would be incorporated in the appropriate operating budget submission to Council. 5.2 In addition to the costs associated with the ownership of the community hall buildings, there is annual consideration for operating grants to be requested by these boards. Prior to 2020, grants were approved through the community grant program. Since that time, all requests are made to Financial Services and are considered as part of the annual budget submission. 5.3 The summary of operating grant funds issued to non -consolidated community halls for 2017 — 2019 and 2022 is as follows: Memorial Brownsdale Hampton Haydon Kendal Newtonville Orono Park Community Community Community Community Hall Town Clubhouse Centre Hall Hall Centre Hall 0 11,499 14,000' 0 12,000 16,800 9,000 5.4 Staff will investigate the costs associated with incorporation as well as any additional ongoing costs to operate as a not -for -profit. The total cost and possible funding recommendations would be included in the subsequent report back to Council. Capital Costs 5.5 The Municipality, as the owner of these buildings, is responsible for the overall integrity of the buildings, including the structural components, roofs, building envelopes, water supply and waste systems, life safety systems and major mechanical/electrical systems. These responsibilities would be generally consistent with the role of a building landlord. 5.6 As part of our four-year capital planning exercise, all major repairs or replacements to community halls are added to the proposed project list. Facility Services staff would review these projects as part of the overall budget. Based on a detailed review and priority setting exercise, the Council would consider projects as part of the Community Services capital budget submissions. Page106 Municipality of Clarington Report CSD-002-23 Page 6 5.7 For 2017 — 2022, the total value of capital works completed on community hall buildings was $1,460,408. This included significant renovation projects at Orono Town Hall and Newcastle Town Hall. All community halls are aging, and the annual capital costs to maintain them to municipal standards will only grow. 5.8 The approved capital budget for 2023 includes several smaller projects at multiple community halls, including exterior building repair work, lighting system replacements and shared cost installation of air conditioning at one location. 6. Concurrence 6.1 This report has been reviewed by the Deputy CAO/Treasurer, who concurs with the recommendations. 7. Conclusion 7.1 It is respectfully recommended that Council approve this report to allow staff to work with the hall boards to prepare plans for incorporated not -for -profit status. Moving forward in this new direction will address the concerns indicated in this report while continuing to support the valuable work these volunteer boards provide their communities. Staff Contact: George Acorn, Director of Community Services, 905-623-3379 ext. 2502 or gacorn@clarington.net. Interested Parties: • ,3�1'"F1i . ii�llll'a►�-[a'iT77n11111NTi:Z41m71TO>W-3 Brownsdale Community Centre Hampton Hall Haydon Community Centre Kendal Community Centre Newtonville Hall Orono Town Hall Page107 Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Date of Meeting: Submitted By: Reviewed By: File Number: Joint Committees June 19, 2023 Report Number: ESD-002-23 Dave Speed, Director of Emergency Services Mary -Anne Dempster, CAO Resolution#: By-law Number: Report Subject: Emergency Response Service Review and Recommendations Recommendations: That Report ESD-002-23, and any related delegations or communication items, be received; 2. That the following recommendations, as detailed in Report ESD-002-23, be endorsed; a) Mayor and Council request staff to prepare correspondence for their consideration to be sent to the provincial government requesting the installation of residential sprinklers in all new affordable housing developments; b) Revise the scope of the conceptual design for a new Public Works Depot on municipal -owned property at 2656 Concession Road #4, Bowmanville to incorporate a Public Works/Fire Station/training facility with shared building footprint; c) Pursue the signing of a lease with Region of Durham Paramedic Services for concurrent use of Fire station 5 in Enniskillen; d) Renovate Fire Station 1, Bowmanville to accommodate a full-time two -truck station with an operational date of September 2025; e) Hire 20 full-time firefighters to staff an existing fire truck to respond to emergency calls from renovated Fire Station 1, Bowmanville with a hire date of September 2025; Fill a minimum of 50% of new firefighter positions from existing volunteer firefighters; f) Discontinue the Volunteer firefighter program at Station 1 effective January 2026; g) Hire 20 full-time firefighters to staff an existing fire truck to respond to emergency calls from Fire Station 4, Cou0ac6e!th-a hire date of September 2027. Fill a Municipality of Clarington Report ESD-002-23 Page 2 minimum of 50% of new firefighter positions from existing volunteer firefighters. Should Council approve the construction of a new Fire Station in conjunction with the Operations Depot at 2656 Concession Road #4, Bowmanville, the new full- time firefighters and fire truck will respond from the new fire station; h) Discontinue the Volunteer firefighter program at Station 4, effective September 2027; 3. That the costs identified in this report, and funding strategy be included in the 2024 to 2027 multi -year budget; 4. That Council direct the Director of Emergency and Fire Services and Fire Chief to implement the recommendations endorsed by Council in Report ESD-002-23; and 5. That all interested parties listed in Report ESD-002-23, and any delegations be advised of Council's decision. Page109 Municipality of Clarington Report ESD-002-23 Report Overview Page 3 Clarington's most recent Fire Master Plan was completed by Pomax in 2021 with a strategic planning time frame of 1 year. In the absence of a strategic plan beyond 2022, Clarington Emergency and Fire Services (CEFS) has conducted a thorough internal review of the emergency services it delivers to the public to form the factual base for the creation of Departmental strategic and operational service delivery 5-year plans. This Review identifies risks to emergency service delivery being faced today, identifies trends that may perpetuate or increase these risks, and offers recommendations to mitigate risks both now and moving forward as Clarington is experiencing unprecedented community growth. The principal findings of the review are: • The design of the CEFS emergency response program may no longer be equipped to meet Clarington's current and future emergency service demand, • Numerous risks and service gaps have been identified that can be mitigated in some areas by moving away from composite stations, and towards full-time firefighter stations. 1. Background 1.1. In 2021, Pomax developed a Fire Master Plan for CEFS. The plan was received by Council, endorsed, and implemented. The plan and its recommendations were developed for a one-year time frame. There is no existing strategic direction for CEFS. 1.2. In the absence of a strategic roadmap, the CEFS Management Team conducted a thorough review of the types of emergency services provided, how they are delivered, the quality and reliability of these services, and the costs to do so. 1.3. The formal Review document, complete with recommendations has been finalized by the Team and provided with this report for Council's consideration and direction. This Review document will form the basis of the CEFS' 5-year strategic and operational emergency service delivery plans. Page110 Municipality of Clarington Report ESD-002-23 2. Proposal Page 4 2.1 There are two primary themes that have been identified from the Review: a) The design of the CEFS emergency response program may no longer be equipped to meet Clarington's current and future emergency service demand, and b) numerous risks and service gaps have been identified that can be mitigated in some areas by moving away from composite stations, and towards full-time firefighter stations. 2.2 Region of Durham Paramedic Services (RDPS) have recently expressed strong interest in utilizing Fire Station 5 for their paramedical program. They are interested in leasing the property for a five (5) year term and would like to occupy it immediately. Discussions are underway between both organizations to determine the logistics of simultaneously providing both services from one location for a short time. CEFS, the CAO, and the Municipal Solicitor will continue to pursue this opportunity as it may provide additional service levels to the Clarington community and another source of revenue. Community Emergency Response Demand 2.3 Most emergency calls (92%) occur within three (3) major urban centers (Courtice, Bowmanville, and Newcastle), where there are fire hydrants and well -maintained roads. Approximately 8% of emergency calls originate in rural areas with no hydrants and with roads that are not always well maintained. 2.4 Medical calls are the most frequent emergency response need that the community requires of CEFS, while residential fires represent the most common type of structure fire. This is common for most fire departments in Southern Ontario. 2.5 When comparing Clarington's fire profile to that of Pickering, Ajax, Whitby, and Oshawa, Clarington's fire statistics for 2019-2021 place us as follows: a. The most fires per capita. b. The most structure fires per capita. c. The most single-family dwelling unit fires per capita. d. The most vehicle fires per capita. e. The second most fire dollar loss per capita. Average number of multi -unit fires per capita (lowest total number). g. The fewest fire injuries and deaths per capita. Page111 Municipality of Clarington Page 5 Report ESD-002-23 How CEFS Meets Emergency Service Demand Today 2.6 CEFS is expected to respond to approximately 4,200 calls in 2023. This an increase of over 1,500 calls when compared to 2022. Based upon a population of 104,000, this equates to one (1) emergency call for every 24.75 people. 2.7 With 19,700 people projected to be moving into Southwest and Southeast Courtice in the next several years, emergency response numbers are anticipated to increase for the Station 4 area by 796 calls per year, almost doubling its existing response numbers at a 93.6% increase. 2.8 According to Clarington's Planning and Development Department, in addition to the Southeast and Southwest Courtice population growth numbers, there will be an additional 62,000 people calling the south, urban portion of the Clarington community home. At the existing emergency response ratio of one (1) emergency service call for every 24.75 people, it is anticipated that this will result in an increase of 2,505 emergency calls above the 796 emergency call increase in the South Courtice area. Page112 Municipality of Clarington Page 6 Report ESD-002-23 Renderings showing sample concepts for the Courtice Transit -Oriented Community Secondary Plan and GO Station Area Rendering showing sample concepts for the Bowmanville West Urban Centre and Major Transit Station Area Page113 Municipality of Clarington Report ESD-002-23 Page 7 Attaphmcnt 1 to PDS-028-23 I l I Mitchell I Active and Recently Completed Secondary r' r Corners Plans and Subwatershed Studies Courtice 6owmanville -Orono i I I I — -1. rl Maple Grove I- r Newcastle - — Cournoe Atbaifmna and E nergy Park R� __ L[fkC 4+Tfurio L Gmrbc Transit-0nenbed Community and GOStationpree Brooldirll Nelghhnurhmd(AdMed 2029) v _ _ Faleell Heiphty �_ spoor Hills QSeutheast Coun,� (Appr—d 2022) _ Soper sprirgs 8ou1hwest Cowbo--(AW—d 2022) NorM VIIUW _ Bo—ranville East Urban Centre Will Amu Creek N2lghb .r—d 5obl neon Creek and Tapley Cr—k Su bw"ral— Sl�dy A — (Adopted n25) - Bowma Alb VA t Urban C-1- and GO S'3t-.A'0.3 01f<r �, ISt!ng So conda iV Pian Arv'3s Scper Creek Sub —bumped Stud yAr— Active and Recently Completed Secondary Plans and Subwatershed Studies Page114 Municipality of Clarington Report ESD-002-23 Accessory Apartments — Estimated Units and Population Page 8 Secondary Plan / MTSA Estimated Units Estimated Population Southeast Courtice' 5,000 12,000 Southwest Courtice' 2,900 7,700 COurtice MTSA2, hotel 13,100 19,365 Courtice Waterfront and Energy Parka 1,000 2,400 Farewell Heights4 866 2,596 Bowmanville West Urban Centre and Major Transit Station Areal 8,000 12,135 Brookhill Neighbourhood' 2,700 7,400 Bowmanville East Urban Centre2 2,400 4,286 Soper Hills' 3,500 8,800 Soper Springs' 740 2,100 Wilmot Creek Neighbourhood' 800 1,600 North Village' 1,100 2,600 Page115 Municipality of Clarington Report ESD-002-23 Additional Growth/Density 2.1 Clarington has seen a dramatic increase in the number of accessory (basement) apartments. It is anticipated that this will continue to increase each year. Total Accessory Apartments in Clarington by Year -15 -1 r V F Page 9 93 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2021 2022 2023 Year How CEFS Meets Emergency Service Demand Today 2.1 CEFS is a composite fire department comprising 64 full-time firefighters and up to 125 part-time volunteer firefighters responding from five (5) fire stations within the Municipality strategically located to provide the best emergency response. 2.2 Every fire station has at least one pumper and one tanker truck. Additional pumper trucks, aerial trucks, rescue trucks, and specialized equipment are located throughout the Municipality to assist in various emergency operations. 2.3 Station 1 (Headquarters / Bowmanville) Built in 1994 and located at 2430 Highway 2 in Bowmanville, Station 1 is a composite fire station with full-time and volunteer firefighters. Station 1 is also home to management/administration, mechanical, and training staff. Station 1 firefighters Page116 Municipality of Clarington Page 10 Report ESD-002-23 respond to an annual average of 1,700 emergency calls per year in Clarington, representing 48% of Clarington's annual response volume. 2.4 Station 2 (Newcastle) Built in 2014 and located at 3333 Highway 2 in Newcastle, Station 2 is a composite fire station with full-time and volunteer firefighters. Station 2 firefighters respond to an annual average of 700 emergency calls per year in Clarington, representing 20% of Clarington's annual response volume. 2.5 Station 3 (Orono) Built in 1984 and located at 5708 Main Street on Orono, Station 3 is staffed by volunteer firefighters. Station 3 firefighters respond to an annual average of 175 emergency calls per year in Clarington, representing 5% of Clarington's annual response volume. 2.6 Station 4 (Courtice) Built in 2005 and located at 2611 Trulls Road Courtice, Station 4 is a composite fire station with full-time and volunteer firefighters. It also houses Fire Prevention staff and the Municipality's By -Law Division. Station 4 firefighters respond to an annual average of 850 emergency calls per year in Clarington, representing 24% of Clarington's annual response volume. 2.7 Station 5 (Enniskillen) Built in 1990 and located at 2354 Concession Road 8 in Enniskillen, volunteer firefighters staff Station 5. Station 5 firefighters respond to an annual average of 95 emergency calls per year in Clarington, representing 3% of Clarington's response volume. 2.8 NFPA 1710 provides an internationally recognized travel time best practice of four (4) minutes for an initial crew of four (4) firefighters to arrive on a fire scene 90% of the time and a travel time of eight (8) minutes for a total of fifteen (15) firefighters to arrive on scene 90% of the time. 2.9 The Station location travel time map shows Clarington's travel time performance. Page117 Municipality of Clarington Page 11 Report ESD-002-23 TOWNSHIP OF SCUGOG StationMlqlrffd��l,, A Current Fire 1 Travel Times 1 - 4 Minutes from Station 1 i! Concession R&I Concasa� n Rd'9—Redona�Rd 20= - _ - - ® ti Flre Station s = ONo5 _ ;•— I� Regional Rd: Cow .on Rd 7 i N E "`1ll�YY 7 — r C33 ! T Y O F ?Ganaraska Road (� OSHA WA '®!I € �+� Taunton Road Fire Station a w Pe6biestane Road a 1 j 5 z 1! J.'.`F.ire:Station f°N_ 0 1 s!! CNash Road •— Concession Rd Z 4 i;? °'•No�9 .� - ` -Y CondessionRd'4 - rc `i 1 RaBi �7 ICI °°day f3 Flre St Von No o Weadqua._ ! Bloor�5treel y? e � � Cancesakn Rd 3 ! 1 � m Sireet�9 ��Ra$rc I FltsfatlOn �� ! na Baseline Read - -Baseline Read Eat ! "19filvay NO 2 r 1 !1 Mill? v e9io nal Hi9hWay Z F �"••a k� x : - o =!-_ram*. i, f Lake Ontario "== (a) Clarington is served by three (3) full-time fire trucks, each staffed with five (5) firefighters. Depending upon vacation time, WSIB, parental leaves, LTD, sick time, etc., the staffing of each truck is most often at four (4) for a shift total of twelve (12) firefighters on duty. On these occasions, Clarington cannot meet the NFPA best practice of fifteen (15) firefighters on scene in eight (8) minutes. It is also not uncommon for staffing levels to drop below four (4) per truck with a total complement of between nine (9) and eleven (11) per 24-hour shift. In these instances, having fewer than twelve (12) firefighters on duty, and having three (3) arrive on a fire scene in 4 (four) minutes severely restricts fire ground operations. 2.10 In addition to the above, the Review identifies other service gaps and risks that exist today, many of which have traditionally been mitigated by the CEFS volunteer firefighter Page118 Municipality of Clarington Report ESD-002-23 Page 12 program. CEFS volunteer firefighters have been serving the Clarington community for decades. The men and women who comprise this group are dedicated, selfless, community -minded people who have saved countless lives. They are pillars of our community, and for years they have been a part of a program that has worked well. 2.11 However, the data that has been compiled and analyzed in the Review has clearly identified that the program is no longer working as it once did. Increasing volunteer attrition rates, decreasing performance/response rates, increasing new recruit class sizes and costs, and declining recruitment pools have resulted in a program that cannot be relied upon to provide the guaranteed emergency service response that the Clarington community requires today. 2.12 This problem is not unique to Clarington. Many composite and volunteer Fire Services in Ontario and across Canada are experiencing similar challenges. Clarington's local comparators, Pickering, Ajax, Whitby, and Oshawa were composite fire departments at one point in time and now are full-time firefighter departments. 2.13 Click here to read the Great Canadian Fire Census 2022. 2.14 Click here to read the Canadian Association of Fire Chiefs Press Release titled "Fire and Emergency Services Face Precarious Future." 2.15 Click here to read the article from The International Association of Fire and Rescue Services titled "Chief says firefighter shortage puts small communities at risk." 2.16 Click here to read the article from CBC News titled "Volunteer firefighter shortage putting communities at risk." 2.17 Click here to read the Toronto Star article titled "Attracting, retaining volunteer firefighters a challenge." 2.18 Click here to read the article from Fire Wise Consulting and Learning Academy titled "How the Volunteer Firefighter Shortage is Affecting Canadian Communities." 2.19 Click here to watch the video "Volunteer firefighter shortage putting Canadian communities in danger." 2.20 Click here to watch the video "Recruitment and Retention of Volunteer Firefighters." Page119 Municipality of Clarington Report ESD-002-23 Page 13 One of the recommendations from the Canadian Association of Fire Chiefs in light of the growing volunteer firefighter challenges being faced across Canada is to request that the Provincial government require the installation of residential sprinklers in all new affordable housing developments. While this recommendation does not help to resolve the volunteer firefighter challenges, it does provide people in residential fires with more time to safely escape. Recommendation Summary 2.21 Mayor and Council request the provincial government to require the installation of residential sprinklers in all new affordable housing developments; 2.22 Revise the scope of the conceptual design for a new Public Works Depot on town owned property at 2656 Concession Road #4, Bowmanville to incorporate a Public Works/Fire Station/training facility with shared building footprint; 2.23 Pursue the signing of a lease with Region of Durham Paramedic Services for concurrent use of Fire station 5 in Enniskillen; 2.24 Renovate Fire Station 1, Bowmanville to accommodate a full-time two -truck station with an operational date of September 2025; 2.25 Hire 20 full-time firefighters to staff an existing fire truck to respond to emergency calls from renovated Fire Station 1, Bowmanville with a hire date of September 2025; Fill a minimum of 50% of new firefighter positions from existing volunteer firefighters; 2.26 Discontinue the Volunteer firefighter program at Station 1 effective January 2026; 2.27 Hire 20 full-time firefighters to staff an existing fire truck to respond to emergency calls from Fire Station 4, Courtice with a hire date of September 2027. Fill a minimum of 50% of new firefighter positions from existing volunteer firefighters. Should Council approve the construction of a new Fire Station in conjunction with the Operations Depot at 2656 Concession Road #4, Bowmanville, the new full-time firefighters and fire truck will respond from the new fire station; and 2.28 Discontinue the Volunteer firefighter program at Station 4, effective September 2027. Page120 Municipality of Clarington Report ESD-002-23 3. Financial Considerations Page 14 3.1 A transition from the volunteer service for Station 1 and Station 4 will result in savings of approximately $494,400 per year, based on the 2023 budget. These savings can be reallocated towards the financial impact of a larger contingent of full-time firefighters. 3.2 A phased -in approach is recommended to fund the salary costs for the firefighters utilizing a combination of reserve funds and tax levy. The following table shows the incremental impact of reserve fund contributions and tax levy as well as the tax levy impact (based on the 2023 levy). Incremental $520,000 $1,084,522 $1,048,170 $1,088,455 $1,087,571 $1,083,439 $1,104,101 Change Tax Levy % 0.72% 1.50% 1.50% 1.50% 1.50% 1.50% 1.52% 3.3 The above costs represent the staffing impacts only. There would be additional operating costs for these firefighters, such as suit cleaning, training, office supplies, and other incidentals, which would be offset by savings in equipping and maintaining gear for new volunteer firefighters. The operating costs of the new hall are also not included above, which would include hydro, water, repairs and maintenance. 3.4 A portion of the capital costs of the firehall would be, currently, eligible for recovery through development charges. The Municipality is planning to update its development charges study in 2023 to include the impacts of the growth due to the secondary plans. The costs of this project will be included in the DC Study to its eligible limit. The recovery of costs from development charges is subject to limitation due to benefit to existing taxpayers as well as historical spending. A debenture is likely required for this project to fund the construction, principal payments and interest are recoverable from development charges up to the allowable limit. 4. Concurrence This report has been reviewed by the Deputy CAO/Treasurer, Director of Planning and Infrastructure Services, Director of Public Works and the Director of Community Services who concur with the recommendations. Page 121 Municipality of Clarington Report ESD-002-23 5. Conclusion Page 15 It is respectfully recommended that Council approve the recommendations of this report. Staff Contact: Dave Speed, Fire Chief, 905-623-5126 or dspeed@clarington.net. Attachments: Attachment 1 — Emergency Response Service Review — CEFS 2023 Final Interested Parties: There are no interested parties to be notified of Council's decision. Page122 Attachment 1 to Report ESD-002-23 2023 Emergency Response Service Review �11 Clarington Emergency and Fire Services 5/11/2023 I Emergency Response Service Review: Clarington Emergency and Fire Services Executive Summa Clarington Emergency and Fire Services (CEFS) has conducted a thorough internal review of the emergency services it provides to the public in order to identify the needs of the growing Clarington community, and to assess how these needs are being met. As a modern municipal service primarily funded by taxpayer dollars, it is incumbent upon us to hold ourselves accountable, and to conduct reviews periodically to identify improvement opportunities. A revised Establishing and Regulating by-law was recently submitted to Clarington Council for their consideration and approval. The revised by-law recommends that CEFS not provide specialty rescue services such as high angle rope rescue, confined space, trench, building collapse, etc beyond the awareness level as the demand for this service does not exist. Instead, it has been recommended to Council that these services be provided on an as -needed basis by Oshawa Fire through a Fire Protection Services Agreement. Other services including elevator rescue have been added to the by-law based upon community need. By taking these steps, CEFS is designing the services it offers to suit Clarington's emergency service needs. This Review identifies opportunities, and recommends changes to improve Departmental efficiencies, effectiveness, and service quality while being fiscally responsible. The Clarington community is changing quickly. Growth is here now, and CEFS must change and adapt to continue to provide the high service levels that the Clarington community is accustomed to. ERSR: May 2023 Clarington Emergency and Fire Services Page 1 of 53 Page124 Emergency Response Service Review: Clarington Emergency and Fire Services Introduction The Clarington CAO and Corporate senior leadership team have established four corporate pillars to provide a foundation for all Departments to use as a guide for consistent corporate strategic modernization and improvement. 1. Setting strategic vision 2. Developing talent 3. Driving for results 4. Working with financial information This Emergency Response Service Review has been developed by the CEFS Management Team within the context of these four corporate pillars: 1) Setting the strategic vision In determining the strategic vision for CEFS, several essential foundational pieces have been put in place. a) Firstly, a CEFS Vision/Mission/Core Values committee was created, comprised of CEFS staff along with representation from Clarington HR to develop a Departmental set of guiding statements and values. These statements are being used to help guide the CEFS strategic path for the Fire Service. b) Secondly, a review of Clarington's emergency services' needs has been conducted with risks to these service needs identified. c) Thirdly, consideration has been given to further risks, both current and emerging to CEFS emergency service efficiency, quality, costs and the return on taxpayer investment. d) Lastly, community growth has been considered so that CEFS has plans to ensure that services can continue to be provided in accordance with the pace of change. 2) Developing talent It is critically important that CEFS makes staff development a priority within the Department. Providing people with opportunities to expand their thinking, to try stretch assignments, and to develop their skill sets and talent, serves the department well and the community we serve. Having `home grown' leaders ready when promotional vacancies occur promotes positive staff morale, fosters a healthy culture, challenges the status quo, keeps staff engaged, and moves the Department to the leading edge of progress and innovation. CEFS has identified several key initiatives to help promote talent development in line with this Corporate pillar. Continuous Improvement Committee Leadership Development Program ERSR: May 2023 Clarington Emergency and Fire Services Page 2 of 53 Page 125 Emergency Response Service Review: Clarington Emergency and Fire Services Education Program 3) Driving for results and working with financial information Recommendations have been provided in this report to meet community emergency services' needs. Considerations have been included in the recommendations to ensure they are fiscally realistic and responsible to the taxpayers we serve. 1) Setting a Strategic Vision 1a) CEFS Vision, Mission, and Core Values The CEFS Vision Committee comprised of women and men from each Division (Fire Prevention, Training, Suppression, Management/Admin, Association representation) and every rank recently developed the Departmental Vision, Mission, and Core Values statements. Clarington Emergency and Fire Services Vision A community free from loss of life, injuries, and property loss Mission An innovative service dedicated to protecting our community through education, prevention, and emergency response. Professionalism Core Values A commitment to excellence in everything we do Integrity Dedicated to honesty and accountability while holding ourselves to a high ethical standard Compassion Devoted to treating people with dignity and kindness ERSR: May 2023 Page 3 of 53 Clarington Emergency and Fire Services Page126 Emergency Response Service Review: Clarington Emergency and Fire Services Our vision statement is our dream for our community. It is slightly out of reach, something we constantly strive for, and something our strategic and operational plans will be designed to meet. It is a picture/description of what we would like our community to look like in the future. Our mission statement is our purpose for being. It's what we do every day, and how we do it ("an innovative service"). Our core values are what we will become known for. It's how we behave when we interact with the public, our colleagues, and ourselves. It's what we value most and what we strive to become as a group and as individuals. The committee worked hard over several meetings to discuss every word of every statement so that they clearly communicated what we wanted to convey, while also being succinct. Each statement is less than 15 words so that they can be easily remembered and recited and hopefully adopted. These statements will be proudly displayed in the Clarington fire stations as a constant reminder of who we are, what we do, how we do it, and what we want our community to become. They are the key foundational pieces that are required to develop our departmental strategic plans, our budgets, and upon which everything we do will be built. 1 b) Review of Clarington's emergency services' needs Community Overview With a population of approximately 104,000, Clarington covers an area of 610 square kilometers comprised of four (4) major urban centers, (Bowmanville, Courtice, Newcastle and Orono) as well as 14 hamlets. According to the Stats Canada 2021 Census, the majority of Clarington's population (65%) is between ages 15 and 64, followed by ages 0-14 at 20%, and ages 65 and over at 15%. Languages spoken mostly at home are English at 93.7%, Non -official at 4.1 %, and French at 0.5% 16.5% of the population identifies themselves as being a visible minority. The majority of people in Clarington work outside of the home with 35% working in Clarington, and 65% commuting outside of Clarington. Risk — Limited volunteer hiring pool. There are 46,310 people in the 20-55 age group, which is the primary hiring age for the CEFS volunteer program. Out of this number, 65% commute beyond Clarington, making it impossible for them to respond during work hours. This brings the number to 16,208, or approximately 15.9% of Clarington ERSR: May 2023 Clarington Emergency and Fire Services Page 4 of 53 Page127 Emergency Response Service Review: Clarington Emergency and Fire Services residents who are within the age range to likely be considered as firefighters, and who work within Clarington and therefore able to respond during weekdays. According to Clarington's Planning and Infrastructure Division, the following numbers of people live within 5 kilometers of each Fire Station. People must live within 5 kms to be eligible to apply. Any distance further than this may result in a drive time that would take too long when reporting from their home to the Fire station during an emergency call. Station Population within 5 kms 15.9% hiring pool Station 1 52,327 8,319 Station 2 11,904 1,892 Station 3 3,773 599 Station 4 30,256 4,810 Station 5 2,844 452 Community Risks Geographic Profile Risks Geographic Feature Potential Impact on the Delivery of Fire Protection Services Lake Ontario Hazards and concerns identified with having a large body of water at the southern border of the municipality presents several risks including flooding and water rescue. Railway Tracks Large amounts of people and goods are transported through the municipality by rail. There are risks associated with train derailments and dangers associated with large volumes of hazardous materials. Highways 401, Highway transportation routes intersecting and traversing 35/115, 407, 418 Clarington create significant potential risk due to motor vehicle collisions and associated dangers due to hazardous materials. Ganaraska Forest Having the largest urban forest in Ontario requires the community to address visitor safety and environmental concerns such as forest fires. There is a municipal partnership associated with the Ganaraska Forest. Area Municipalities meet with staff from the Ganaraska Forest to provide updates on activities in the forest such as accidents, prescribed burns, logging etc. CEFS has hosted courses to assist fire services in forestry firefighting. MNRF is consulted and provides CEFS with annual costs for assistance using water bombers, helicopters, staff etc. ERSR: May 2023 Clarington Emergency and Fire Services Page 5 of 53 Page128 Emergency Response Service Review: Clarington Emergency and Fire Services Clarington Building Stock Building Type # of Buildings High Rise Residential 3 Low Rise Residential 46 Single/Town Residential 29,725 Farms 672 Seasonal / Cottage 69 Seniors/Retirement 7 Industrial 108 Gas Stations/Auto Repair 45 Restaurants 129 Nursing Home/Hospital 5 Assembly 28 Hotels/Motels 8 Schools 40 Offices 74 Group Homes 8 Day Care Centers 31 Commercial 346 Churches Places of Worship 43 Residential Occupancies Single -detached house 27,945 Apartment in building that has five 5 or more stories 525 Semi-detached house 1,075 Row house 3,125 Apartment or flat in duplex 910 Apartment in a building that has less than five (5) stories 2,290 Other single -detached house 30 Movable dwelling 65 Total private dwellings 35,955 ERSR: May 2023 Clarington Emergency and Fire Services Page 6 of 53 Page129 Emergency Response Service Review: Clarington Emergency and Fire Services Clarington Critical Infrastructure Profile Risks Identified Critical Infrastructure Issues / Concerns Elexicon / Hydro One Hydro distribution system is not only Electricity Distribution critical to the delivery of emergency services, but also to the ongoing requirements for commerce throughout the GTA. Lakeridge Hospital, Bowmanville Consideration is required should an emergency occur on site or the hospital is compromised because of a remote emergency. Telecommunications Communication in the event of an emergency is important to both the public and to emergency service providers. Durham Region Works Water Stable water supply for the safe secure Department drinking water for the residents and firefighting. Hazard Profile Risks in Clarington Identified Hazard Probability Consequence Assigned Risk Level Flood Almost Certain Minor Moderate Ice Storm Possible Moderate Moderate Radiation Leak OPG Rare Catastrophic Moderate Propane Explosion Rare Moderate Low Risk Fire Emergencies Almost Certain Moderate High Risk ERSR: May 2023 Clarington Emergency and Fire Services Page 7 of 53 Page130 I Emergency Response Service Review: Clarington Emergency and Fire Services Clarington Public Safety Response Profile Risks Identified Types of incidents Their role at the incident Issues / Concerns Public they respond to Safety Response Agency Durham Motor Vehicle Scene control Common inter - Regional Collisions (MVC) Traffic control and assist agency awareness Police Fire emergencies CEFS with fire and incident Service investigation command training (DRPS) Marine between fire and emergencies Marine based search & police services rescue Region of Medical Transport patients to Common inter - Durham emergencies hospital agency awareness, Paramedic MVC s Provide pre -hospital and incident Services medical care command training (RDPS) between fire and Standby and perform RDPS Fire emergencies rehabilitation for firefi hters at fire calls OPG Fire and OPG IFB establishes Common inter - Industrial emergency command and operational agency training Fire Brigade incidents at control to mitigate (especially Incident (IFB) Darlington Nuclear emergency incidents Management Generating Station System training) (OPG) between OPG IFB and Clarington Emergency Fire Services (CEFS) as CEFS provides supporting role to the IFB at OPG Ontario Search and Rescue Assist in search and Common inter - Volunteer rescue incidents agency Incident Emergency Command System Response (ICS) training Team between OVERT (OVERT) and CEFS ERSR: May 2023 Clarington Emergency and Fire Services Page 8 of 53 Page 131 Emergency Response Service Review: Clarington Emergency and Fire Services Clarington Economic Profile Risks Identified Occupancy Key Risk Probability Consequence Assigned Risk Level Darlington Nuclear Nuclear Rare Catastrophic Moderate Risk Municipality of Clarington Fire Possible Moderate Moderate Risk Bowmanville Hospital Fire Possible Major Moderate Risk Algoma Orchards Fire Low Minor Minor Risk St Mary's Cement Fire Possible Minor Moderate Risk An event at OPG Darlington may not necessarily pose a nuclear radiation issue. Any closure of the facility would have a significant negative effect on the local economy of Clarington. Small fires at the facility that have occurred have been quickly extinguished and put under control. The second largest employer in Clarington is the Municipality of Clarington with 700 employees. Most employees work at the municipal offices while the remainder are spread out across the Municipality. Business continuity plans are a top priority for the Municipality of Clarington. An Emergency Management/Business continuity position was approved in 2023 and will be filled by September. The Bowmanville-Lakeridge Health hospital has approximately 370 employees. Any disruption here would force patients to attend or potentially be transferred to Oshawa- Lakeridge Health hospital or Northumberland Hills Hospital. Algoma Orchards is an apple farming, packing, and juice bottling company which employs approximately 130 people and is the largest agricultural employer in Clarington. St. Mary's Cement employs approximately 120 people. There have been fires at this facility in the past. ERSR: May 2023 Clarington Emergency and Fire Services Page 9 of 53 Page132 Emergency Response Service Review: Clarington Emergency and Fire Services CEFS Emergency Response Statistics The Clarington community has similar types of emergency needs to other comparable communities. Structure fires, medical responses, carbon monoxide incidents, elevator rescues, motor vehicle collisions, water rescues, natural gas leaks and other hazardous material calls, agricultural and other non -structure fires are among the most common types of emergency calls. However, what mostly separates Clarington from other communities are the challenges that come with its geographic size. Most emergency calls (92%) occur within three (3) major urban centers (Courtice, Bowmanville, and Newcastle) where there are fire hydrants, and well - maintained roads. About 8% of emergency calls originate in rural areas with no hydrants and with roads that are not always well maintained. How to design CEFS to best meet the needs of the greatest number of people is one of the drivers behind this report. Medical calls are the most frequent emergency response need that the community requires of CEFS, while residential fires represent the most common type of structure fire. This is common for most fire departments in Southern Ontario. What is not as common is the large number of motor vehicle collisions, and vehicle fires that occur in the Clarington community. Vehicle fires are the fourth leading dollar loss fire in the community. All Responses Appendix B contains response data from the 2021 Fire Master Plan created for CEFS by Pomax. In reviewing the tables, several risks become clear: Risk — The majority of emergency response demand in Clarington is between 8 a.m. and 8 p.m. at all five (5) fire stations. This also happens to be the time frame when the fewest number of volunteer firefighters are available as many of them work outside of Clarington during the day. This problem is anticipated to increase as emergency call volume increases along with growth in stations 1 and 4, while volunteer retention rates continue to decrease. Risk — Stations 1, 2, and 4 show an upward trend in emergency call demand (2020 was an anomaly with the impact of COVID-19 on call volumes), while Stations 3 and 5 have a static emergency call demand. Stations 1, 2, and 4 are expected to see a continuing increase in demand as the population increases in the next few years. Additional guaranteed response resources are needed to respond to this demand increase. Fires ERSR: May 2023 Clarington Emergency and Fire Services Page 10 of 53 Page133 70 60 50 40 30 20 10 0 Emergency Response Service Review: Clarington Emergency and Fire Services Number of Structure Fires 54 53 43 2019 2020 2021 60 2022 1 Source: OFMEM Standard Incident Report Data Structure Fires by Occupancy Type 2019 2020 2021 2022 4 YrAv Assembly 0 1 0 3 1 Institutional 0 0 1 0 0.25 Residential 29 44 37 42 38 Business/Personal, Mercantile 6 1 2 3 3 Industrial 3 4 3 6 4 Non-OBC structures barns, sheds,gazebo) 5 4 10 6 6.25 Totals 43 54 53 60 52.5 ERSR: May 2023 Clarington Emergency and Fire Services Page 11 of 53 Page 134 Emergency Response Service Review: Clarington Emergency and Fire Services Structure Fire Dollar Loss The majority of fires with dollar loss in Clarington for the period 2019-2022 were for the residential or `C' occupancy at $15,997,861. Second was Mercantile/Business at $10,517,600, and third was Industrial at $8,208,500. Vehicle fires were fourth at $5,300,468 (not technically a structure), more than all other remaining occupancy types combined (Assembly, Institutional, Non -structure). Clarington Fire Dollar Loss by Occupancy 209-2022 $5,300,468 $1,941,50( $15,997,861 >,208,500 $10,517,600 ■ Industrial ■ Mercantile/Business ■ Residential Agriculture ■ Vehicles ERSR: May 2023 Clarington Emergency and Fire Services Page 12 of 53 Page135 Emergency Response Service Review: Clarington Emergency and Fire Services Fire Comparators While Clarington's emergency calls are similar in nature to other comparable communities, their frequency is different. When comparing Clarington's fire profile to that of Pickering, Ajax, Whitby, and Oshawa, Clarington's fire statistics for 2019-2021 place us as follows: • The most fires per capita • The most structure fires per capita • The most single-family dwelling unit fires per capita • The most vehicle fires per capita • Average number of multi -unit fires per capita (lowest total number) • The fewest fire injuries and deaths per capita Risk - This is alarming and will be a central driving force in the development of strategic plans for the Fire Prevention and Education Division of CEFS. However, these high numbers are also a clear indicator that CEFS must continue to look for ways to provide the most effective emergency response possible. 1 c) Further Risks to CEFS Service Delivery Emergency Response CEFS is a composite fire department consisting of full-time and part-time volunteer suppression firefighters. As the largest geographic municipality in the Region of Durham, Clarington is made up of four urban centers and Fourteen (14) hamlets, creating a blend of urban and rural firefighting elements. Clarington in terms of an Emergency and Fire services perspective is highly unique. With it's several major series highways, nuclear and agricultural sectors, protected green spaces, increased economic development in both commercial and industrial sectors, increased high density planning and development, and with the incoming Go - transit expansion, Clarington as a municipality is growing exponentially and with this growth comes opportunities and challenges to our municipal services. Fire Stations Clarington has five (5) fire stations within the Municipality strategically located to provide the best emergency response. NFPA 1710 provides an internationally recognized travel time best practice of four (4) minutes for an initial crew of four (4) firefighters to arrive on a fire scene 90% of the time, and a travel time of eight (8) mins for a total of fifteen (15) firefighters to arrive on scene 90% of the time. ERSR: May 2023 Clarington Emergency and Fire Services Page 13 of 53 Page136 Emergency Response Service Review: Clarington Emergency and Fire Services The Station location travel time map shows Clarington's travel time performance. TOWNSHIP OF SCUGOG Current Fire Statione Travel Times 1Station 0,10 C incession Rd Concession Rd'9egional Rd 20 9 Fire Station �3 No 5 r i ' ,F.,._._- Regional Rd 3 Concession Rd 7 a E o CITY OF ? Ganaras i o ®i kaRoad t m � _. OSHAWA3 d ' ;__-._t a Flre Station g �t TauntonRoad o � — Nor3 > Pebblestone•Road s c z° Q 2 Nash Road -Concession Rdt3 Lc 1 Z 4 No j Concession i - 9io"aly. , ffJJ i Fre Station No J f O ghwat I 1 Headquarters j Bloor-Street y? o Concession Rd 3 g ea i � r co„ ��' Reese Fir�Station R nal hi Baseline Road Baseline Road East ✓bway � x.-� �•*y �_ --_ •'� •`•,'�._... lz.<i i egieoal Highway 2 `l.' A.1° ' 11119.E :�• x__ � } }l Lake Ontario . Risk - While the majority of the urban centers in Clarington can be reached within a four (4) minute travel time, there are several response gaps, particularly in the most populous urban center. Over half of Bowmanville is outside of the four (4) minute travel time. Risk - With Bowmanville experiencing the greatest demand for emergency service (almost 50% of emergency calls), there is a risk of further response delays should a call for emergency service be received when the Station 1 Bowmanville truck is engaged in another emergency call (a single truck response in Bowmanville, a multiple truck response in Station 4 or 2 response areas, or any emergency call North or North East of Station 1 area). Risk — Clarington is served by three (3) full-time fire trucks, each staffed with five (5) firefighters. Depending upon vacation time, sick time, WSIB, parental leaves, etc, the staffing of each truck is most often at four (4) for a shift total of twelve (12) firefighters on ERSR: May 2023 Clarington Emergency and Fire Services Page 14 of 53 Page137 Emergency Response Service Review: Clarington Emergency and Fire Services duty. On these occasions, Clarington cannot meet the NFPA best practice of fifteen (15) firefighters on scene in eight minutes. To conduct fireground operations with fewer than fifteen (15) firefighters particularly in non-hydranted areas where multiple staff are required to continuously shuttle water back and forth from a water source kilometers away to the fire scene, has an impact on the quality of the service being delivered and potentially on fire safety. It is also not uncommon occasionally for staffing levels to drop below four (4) per truck with a total compliment of between nine (9) and eleven (11) per 24 hour shift. In these instances, having fewer than twelve (12) firefighters severely restricts fire ground operations. As well, having three (3) firefighters arrive as the initial fire crew instead of four places restrictions on fire operations that can be performed, including interior firefighting and search and rescue. Risk — CEFS has recently returned to its pre-covid medical tiered response model. Prior to covid, CEFS responded to reports of chest pain, and difficulty breathing. With the onset of covid, to help prevent potential exposure to covid these calls were suspended. In the first quarter of 2023 the decision was made by the Fire Chief to re -institute a response to this community need. As a result it is anticipated that our Departmental emergency call volumes will increase by approximately 1,200 calls per year. This increase will result in our full-time trucks being unavailable to respond to other calls more often than in 2022. Every fire station has at least one pumper and one tanker truck. Additional pumper trucks, aerial trucks, rescue trucks and specialized equipment are located throughout the Municipality to assist in a variety of emergency operations. Station 1 (Headquarters / Bowmanville) Built in 1994 and located at 2430 Highway 2 in Bowmanville, Station 1 is a composite fire station with full-time and volunteer firefighters. Station 1 is also home to management/administration, mechanical and training staff. Station 1 firefighters respond to an annual average of 1,700 emergency calls per year in Clarington, representing 48% of Clarington's annual response volume. Station 2 (Newcastle Built in 2014 and located at 3333 Highway 2 in Newcastle, Station 2 is a composite fire station with full-time and volunteer firefighters. Station 2 firefighters respond to an annual average of 700 emergency calls per year in Clarington, representing 20% of Clarington's annual response volume. ERSR: May 2023 Clarington Emergency and Fire Services Page 15 of 53 Page138 Emergency Response Service Review: Clarington Emergency and Fire Services Station 3 (Orono) Built in 1984 and located at 5708 Main Street in Orono, Station 3 is staffed by volunteer firefighters. Station 3 firefighters respond to an annual average of 175 emergency calls per year in Clarington, representing 5% of Clarington's annual response volume. Station 4 (Courtice) Built in 2005 and located at 2611 Trulls Road Courtice, Station 4 is a composite fire station with full-time and volunteer firefighters. It also houses Fire Prevention staff, and the Municipality's Bylaw and Enforcement Division. Station 4 firefighters respond to an annual average of 850 emergency calls per year in Clarington, representing 24% of Clarington's annual response volume. Risk — with the growth beginning in the Southeast and Southwest Courtice area, call volume will increase significantly and will become comparable to that of the Bowmanville area. With this increase in emergency calls, Bowmanville will be left unprotected, along with Courtice for all two truck emergency responses. Together, Bowmanville and Courtice call volume will account for approximately 85% of all emergency call demand. Station 5 (Enniskillen) Built in 1990 and located at 2354 Concession Road 8 in Enniskillen, Station 5 is staffed by volunteer firefighters. Station 5 firefighters respond to an annual average of 95 emergency calls per year in Clarington, representing 3% of Clarington's response volume. Risk — at 95 emergency calls per year, equipped with the smallest volunteer complement, the most challenging one for which to recruit, and the lowest average number of firefighters responding per emergency, consideration should be given to no longer continuing with Station 5 as a volunteer fire Station. With the growing emergency service demand in the Southern urban centers, the funds used to maintain Station 5 and the fire crew might be more wisely invested in the South portion of Clarington. An additional full-time fire station is proposed for Liberty and Concession 4 with a response time that is almost the same as the existing Station 5 response area. ERSR: May 2023 Clarington Emergency and Fire Services Page 16 of 53 Page139 I Emergency Response Service Review: Clarington Emergency and Fire Services Response Design Clarington responds to the following emergency call types with the resources identified in the chart below: Clarington Fire Responses ALARMS: RESIDENTIAL - APARTMENT / TOWNHOUSE 3 PUMPERS RESIDENTIAL- HOUSE 3 PUMPERS RESIDENTIAL - HIGHRISE 3 PUMPERS COMMERCIAL 3 PUMPERS INSTITUTIONAL- HOSPITAL 3 PUMPERS PLUS 1 AERIAL INSTITUTIONAL - NURSING HOME 3 PUMPERS INSTITUTIONAL - RETIREMENT HOME 3 PUMPERS INSTITUITONAL - SCHOOL / CHURCH 3 PUMPERS INDUSTRIAL 3 PUMPERS RESET - ASSIST 1 PUMPER FIRES / EXPLOSION : 4 PUMPERS, CHIEF OFFICER ON CALL, PLUS 1 STRUCTURAL: RESIDENTIAL - HIGHRISE AERIAL IF URBAN OR 2 TANKERS IF RURAL STRUCTURAL: RESIDENTIAL -APARTMENT/ 4 PUMPERS, CHIEF OFFICER ON CALL, PLUS 1 TOWNHOUSE AERIAL IF URBAN OR 2 TANKERS IF RURAL 4 PUMPERS, CHIEF OFFICER ON CALL, PLUS 1 STRUCTURAL: RESIDENTIAL - HOUSE AERIAL IF URBAN OR 2 TANKERS IF RURAL 4 PUMPERS, CHIEF OFFICER ON CALL, PLUS 1 STRUCTURAL: COMMERICAL AERIAL IF URBAN OR 2 TANKERS IF RURAL STRUCTURAL: INSTITUTIONAL - HOSPITAL 4 PUMPERS, CHIEF OFFICER ON CALL, 1 AERIAL STRUCTURAL: INSTITUTIONAL - NURSING HOME 4 PUMPERS, CHIEF OFFICER ON CALL, 1 AERIAL STRUCTURAL: INSTITUTIONAL - RETIREMENT 4 PUMPERS, CHIEF OFFICER ON CALL, 1 AERIAL HOME OR 2 TANKERS IF RURAL STRUCTURAL: INSTITUTIONAL -SCHOOL/ 4 PUMPERS, CHIEF OFFICER ON CALL PLUS 1 CHURCH AERIAL IF URBAN OR 2 TANKERS IF RURAL 4 PUMPERS, CHIEF OFFICER ON CALL, PLUS 1 STRUCTURAL: INDUSTRIAL AERIAL IF URBAN OR 2 TANKERS IF RURAL ERSR: May 2023 Clarington Emergency and Fire Services Page 17 of 53 Page140 Emergency Response Service Review: Clarington Emergency and Fire Services 4 PUMPERS, CHIEF OFFICER ON CALL PLUS 2 STRUCTURAL: BARN TANKERS IF RURAL STRUCTURAL: AIRCRAFT 4 PUMPERS PLUS 2 TANKERS IF RURAL STRUCTURAL: ELECTRICAL SUBSTATION 4 PUMPERS STRUCTURAL: OTHER 4 PUMPERS STRUCTURAL: APPLIANCES/ELPANEL/ELPLUG 2 PUMPERS PLUS 1 PT PUMPER IF RURAL FIRE 4 PUMPERS, CHIEF OFFICER ON CALL, PLUS 1 STRUCTURAL: CHIMNEY FIRE AERIAL IF URBAN OR 2 TANKERS IF RURAL NON-STRUCTURAL: VEHICLE 2 PUMPER VEHICLE FIRE ON 401 2 PUMPERS PLUS 1 TANKER NON-STRUCTURAL: ILLEGAL BURN 1 PUMPER 1 PUMPER PLUS 1 FT PUMPER IF IN VOLUNTEER NON-STRUCTURAL: BBQ AREA NON-STRUCTURAL: GRASS/TREE/BRUSH 2 PUMPERS IN HARBOUR: 2 PUMPERS PLUS 1 RESCUE, NON-STRUCTURAL: MARINE IN OR OUT OF CHIEF OFFICER ON CALL, PLUS 1 PT PUMPER IN HARBOUR VOLUNTEER AREA; OUT OF HARBOUR: 2 PUMPERS AND 1 ZODIAC NON-STRUCTURAL: PIPELINE/TANK/FARM 3 PUMPERS, 1 RESCUE, CHIEF OFFICER ON CALL PLUS 2 TANKERS IF RURAL 1 PUMPER PLUS 1 FT PUMPER IF IN VOLUNTEER NON-STRUCTURAL: ELECTRICAL TRANSFORMER AREA 1 PUMPERS PLUS 1 FT PUMPER IN A NON-STRUCTURAL: OTHER VOLUNTEER AREA NON-STRUCTURAL: SHED 2 PUMPERS PLUS 1 TANKER IF RURAL 4 PUMPERS, CHIEF OFFICER ON CALL, PLUS 1 NON-STRUCTURAL: SHED CLOSE TO STRUCTURE AERIAL IF URBAN OR 2 TANKERS IF RURAL NON-STRUCTURAL: GARBAGE BIN/RUBBISH 2 PUMPERS PLUS 1 TANKER IN VOLUNTEER AREA NON-STRUCTURAL: GARBAGE BIN/RUBBISH 4 PUMPERS, CHIEF OFFICER ON CALL, PLUS 1 CLOSE TO STRUCTURE AERIAL IF URBAN OR 2 TANKERS IF RURAL NON-STRUCTURAL: APPLIANCES/ELPANEL/ELPLUG 2 PUMPERS PLUS 1 PT PUMPER IF RURAL FIRE NON-STRUCTURAL:SMOKE VISABLE/UNKNOWN 2 PUMPERS SOURCE ACCIDENT: VEHICLE 2 PUMPERS ERSR: May 2023 Clarington Emergency and Fire Services Page 18 of 53 Page 141 Emergency Response Service Review: Clarington Emergency and Fire Services PEDESTRIAN STRUCK 2 PUMPERS AIRCRAFT 2 PUMPERS 2 PUMPERS, 1 RESCUE & CHIEF OFFICER ON MARINE - IN HARBOUR CALL, PLUS 1 PT PUMPER IN A VOLUNTEER AREA 2 PUMPERS, 1 RESCUE & CHIEF OFFICER ON MARINE - OUT OF HARBOUR CALL RAIL - PED/MOTOR VEHICLE 2 PUMPERS RAIL - DERAILEMENT SPILL/NO SPILL 2 PUMPERS & CHIEF OFFICER ON CALL MEDICAL: 1 PUMPER + 1 FT PUMPER IF IN VOLUNTEER EMERGENCY AREA 1 PUMPER + 1 FT PUMPER IF IN VOLUNTEER PAD ALARM AREA 1 PUMPER PLUS 1 FT PUMPER IN A VOLUNTEER VSA AREA 1 PUMPER PLUS 1 FT PUMPER IN A OVERDOSE VOLUNTEER AREA 1 PUMPER PLUS 1 FT PUMPER IN A VOLUNTEER INDUSTRIAL ACCIDENT -PERSONAL INJURY AREA INDUSTRIAL ACCIDENT -ENTRAPMENT 2 PUMPERS 911 UNKNOWN 1 PUMPER + 1 FT PUMPER IF IN VOLUNTEER AREA PUBLIC HAZARD: 1 PUMPER PLUS 1 FT PUMPER IF IN VOLUNTEER CO DETECTOR - WITH SYMPTOMS AREA CO DETECTOR - NO SYMPTOMS 1 PUMPER CHECK CALL 1 PUMPER HAZMAT/SPILL - MAJOR 3 PUMPERS, CHIEF OFFICER ON CALL 1 PUMPER PLUS 1 FT PUMPER IF IN VOLUNTEER HAZMAT/SPILL - MINOR AREA 1 PUMPER PLUS 1 FT PUMPER IF IN VOLUNTEER WIRES DOWN AREA RADIOACTIVE 2 PUMPERS 1 PUMPER PLUS 1 FT PUMPER IF IN VOLUNTEER BOMB THREAT AREA ERSR: May 2023 Clarington Emergency and Fire Services Page 19 of 53 Page142 Emergency Response Service Review: Clarington Emergency and Fire Services FLOODING 1 PUMPER TREE DOWN 1 PUMPER NATURAL GAS/SMELL OUTDOOR 2 PUMPERS NATURAL GAS/SMELL INDOOR 2 PUMPERS NATURAL GAS/RUPTURE 2 PUMPERS ASSIST: LIFT - EMERGENCY 1 PUMPER PLUS 1 FT PUMPER IF IN VOLUNTEER AREA LIFT - NON -EMERGENCY 1 PUMPER PLUS 1 FT PUMPER IF IN VOLUNTEER AREA POLICE - EMERGENCY 1 PUMPER POLICE - NON -EMERGENCY 1 PUMPER PUBLIC 1 PUMPER MUTUAL AID RESPONSE WILL VARY OTHER AGENCY 1 PUMPER MVC - POST ACCIDENT (CLEAN UP) 1 PUMPER RESCUE: 1 PUMPER PLUS 1 FT PUMPER IN VOLUNTEER AUTOMOBILE LOCKOUT AREA 2 PUMPERS, 1 RESCUE, CHIEF OFFICER ON CALL, ENTRAPMENT PLUS 1 PT PUMPER IN VOLUNTEER AREA 2 FT PUMPERS, 1 RESCUE, CHIEF OFFICER ON CONFINED SPACE CALL PLUS 1 PT PUMP IN VOLUNTEER AREA 1 PUMPER PLUS 1 FT PUMPER IN VOLUNTEER ELEVATOR AREA 2 FT PUMPERS, 1 RESCUE, CHIEF OFFICER ON ROPE RESCUE CALL 2 FT PUMPERS, 1 RESCUE, CHIEF OFFICER ON STRUCTURE COLLAPSE CALL ICE/WATER - LAKE ONTARIO 2 FT PUMPERS, 1 RESCUE, CHIEF OFFICER ON CALL, PLUS 1 PT PUMPER IN VOLUNTEER AREA ICE/WATER - MISCELLANEOUS 2 FT PUMPERS, 1 RESCUE, CHIEF OFFICER ON CALL, PLUS 1 PT PUMPER IN VOLUNTEER AREA 2 FT PUMPERS, 1 RESCUE, CHIEF OFFICER ON TRENCH CALL 1 PUMPER PLUS 1 FT PUMPER IF IN VOLUNTEER LOCKOUT AREA ERSR: May 2023 Clarington Emergency and Fire Services Page 20 of 53 Page143 Emergency Response Service Review: Clarington Emergency and Fire Services REMOTE RESCUE 1 PUMPER AND 1 ATV, CHIEF OFFICER O/C SMOKE: RESIDENTIAL -APARTMENT/ TOWNHOUSE - 4 PUMPERS, CHIEF OFFICER ON CALL, PLUS 1 SMOKE VISIBLE AERIAL IF URBAN OR 2 TANKERS IF RURAL RESIDENTIAL - HOUSE - SMOKE VISIBLE 4 PUMPERS, CHIEF OFFICER ON CALL, PLUS 1 AERIAL IF URBAN OR 2 TANKERS IF RURAL RESIDENTIAL - HIGHRISE - SMOKE VISIBLE 4 PUMPERS, CHIEF OFFICER ON CALL, PLUS 1 AERIAL IF URBAN OR 2 TANKERS IF RURAL COMMERCIAL - SMOKE VISIBLE 4 PUMPERS, CHIEF OFFICER ON CALL PLUS 1 AERIAL IF URBAN OR2 TANKERS IF RURAL INSTITUTIONAL - HOSPITAL - SMOKE VISIBLE 4 PUMPERS, CHIEF OFFICER ON CALL, 1 AERIAL INSTITUTIONAL - NURSING HOME - SMOKE VISIBLE 4 PUMPERS, CHIEF OFFICER ON CALL, 1 AERIAL INSTITUTIONAL - RETIREMENT HOME - SMOKE VISIBLE 4 PUMPERS, CHIEF OFFICER ON CALL, 1 AERIAL INSTITUITONAL - SCHOOL / CHURCH - SMOKE 4 PUMPERS, CHIEF OFFICER ON CALL PLUS 1 VISIBLE AERIAL IF URBAN OR 2 TANKERS IF RURAL INDUSTRIAL - SMOKE VISIBLE 4 PUMPERS, CHIEF OFFICER ON CALL, PLUS 1 AERIAL IF URBAN OR 2 TANKERS IF RURAL UNKNOWN SOURCE -SMOKE VISIBLE 2 PUMPERS PLUS 1 PT PUMPER IN VOLUNTEER AREA UNKNOWN SOURCE - SMELL OF SMOKE 2 PUMPERS PLUS 1 PT PUMPER IN VOLUTEER AREA ERSR: May 2023 Clarington Emergency and Fire Services Page 21 of 53 Page144 Emergency Response Service Review: Clarington Emergency and Fire Services For a portion of the emergency calls CEFS responds to, it can do so by exclusively deploying its guaranteed response full-time firefighter complement of three (3) fully staffed trucks. a) Examples of calls that can be addressed using one (1) truck include tree down, CO detector with no symptoms, and check calls. b) Two (2) trucks in volunteer areas (stations 3 and 5) are required for natural gas, medical calls with vital signs absent, motor vehicle collisions, pedestrians struck, elevator rescues, etc. In all other response areas of Clarington, only one (1) truck is required. This is due to the fact that the volunteer trucks in Stations 3 and 5 are not a guaranteed response, so a guaranteed response fulltime truck is dispatched to ensure a response. Upon confirmation that the volunteer truck is responding, the full-time truck returns to its response area. This however, leaves the full-time response area without emergency response coverage and adds to the wear and tear of the fleet. Risk - CEFS can respond to one (1) single -truck emergency calls, and one (1) two (2) truck emergency calls simultaneously with the exclusive use of its guaranteed response full-time firefighting staff. However, it must deploy its volunteer staff if there are any combinations of simultaneously occurring two (2) truck response calls. The volunteer response is not guaranteed, and Clarington can therefore be left vulnerable in this circumstance. c) Three trucks are required to respond for the smell of smoke, a major hazardous material spill, vehicle fires and vehicle accidents on a 400 series highway and highway 115, fire alarms ringing in all occupancies except institutional, and some rescue calls. Risk - In instances where a three (3) truck call occurs, CEFS must rely on its volunteers to respond to all other calls. They are paged to respond to their station to provide standby services, which unfortunately is not a guaranteed service. It is possible that with all three (3) full-time trucks engaged in emergency calls, and particularly in the daytime during weekdays when volunteer response rates are at their lowest, that Clarington may not have emergency services available. In these instances, mutual aid would be called, and a significant delayed response would ensue. d) Risk - Four (4) or more trucks are required for all other calls, including all structure fires, ice/water rescues, fire alarms in hospitals, and smoke visible. Volunteers must respond for CEFS to operate safely and to have enough bodies to eliminate the hazard. In these instances, CEFS may not be able to equip four fire trucks to respond, relying instead on the three full-time trucks it has in ERSR: May 2023 Clarington Emergency and Fire Services Page 22 of 53 Page145 Emergency Response Service Review: Clarington Emergency and Fire Services service, and not meeting the NFPA best practice of fifteen (15) firefighters to safely operate on the fireground. Risk - In instances where mutual aid or automatic aid is requested/required and provided by Clarington, volunteers must be relied upon to backfill and provide standby in Clarington for any subsequent emergency calls that may be received. Should volunteers not be available, fulltime fire crews may have to return to Clarington from the mutual aid or automatic aid call they are attending to. Risk - Simultaneously occurring emergency calls leave the Municipality vulnerable, with no guaranteed response services available. In 2022, CEFS responded to 2,535 emergency calls. Of those, 221 or 8.7% of calls occurred while another CEFS truck was attending to an existing emergency call. In twenty one (21) instances, or approximately 1 % of the time, three (3) separate calls occurred simultaneously requiring at least three (3) trucks to be engaged. Best Practices (Appendix C: Clarington FMP 2014) NFPA 1710 and 1720 Standards are internationally recognized industry best practices for the initial deployment response of four firefighters to conduct initial fire suppression operations effectively, efficiently, and safely. This would include the ability to safely conduct either a quick, limited rescue or limited firefighting operations including the fireground critical tasks of Incident Command- one (1) firefighter/officer, Pump Operation — one (1) firefighter, Attack Line - two (2) firefighters (Confine and Extinguish) These NFPA standards also speak to the fire service depth of response. The fireground critical tasks and initial full response assignment (depth of response) identified within NFPA 1710 utilize the following definition of a residential occupancy: "The fire risk scenario in a 2,000 square foot, two -storey single-family dwelling without a basement and with no exposures present. This represents a typical home of wood frame construction located in a suburban neighbourhood having access to a municipal water supply including fire hydrants". The NFPA staffing deployment for this residential fire risk is fourteen (14) firefighters, fifteen (15) if an aerial device is deployed. However, for this scenario there is a pressurized water source/hydrant. This is not always the case in Clarington. Five firefighters are needed to shuttle water in Tankers for non-hydranted areas increasing the fireground demand for firefighters. For low -risk occupancies a minimum depth of response deployment of four firefighters is required. For moderate risk occupancies including Group C - Residential occupancies (Single — Family Dwelling) a minimum depth of response deployment of fourteen (14) firefighters is required to complete the additional fireground critical tasks based on the ERSR: May 2023 Clarington Emergency and Fire Services Page 23 of 53 Page146 Emergency Response Service Review: Clarington Emergency and Fire Services fire risks present. The additional fireground critical tasks include activities such as providing an additional fire attack line requiring two firefighters, and providing a Rapid Intervention Team (RIT) comprised of two firefighters who are assigned the specific task of being prepared to respond quickly in the event one of the fire attack teams or other firefighters on scene require immediate assistance. In comparison to the low and moderate risk occupancies, high risk occupancies such as a nursing home require additional fireground critical tasks to be completed and a higher minimum deployment of firefighters. The additional fireground critical tasks include activities such as providing a dedicated crew of two (2) firefighters for positioning ladders on the building to support fire suppression and rescue activities, and the provision of an Incident Safety Officer to oversee and ensure all firefighting activities are conducted safely. To be able to achieve the identified critical fireground tasks CEFS must respond with a minimum of four firefighters to low -risk occupancies, fourteen (14) firefighters to moderate risk occupancies and 24 firefighters to high -risk occupancies. The recommended depth of response firefighter deployment is identified in Table 13 below. Table 13: Recommended Depth of Response — Municipality of Clarington Fireground Critical Tasks Low Risk Moderate Risk High Risk Incident Command 1 1 1 Pump Operator 1 1 1 Additional Pump Operator 0 0 1 Initial Attack Line (Confine & Extinguish) 2 2 2 Additional Attack Line (Confine & Extinguish) 0 2 2 Search and Rescue 0 2 2 Incident Initial Rapid Intervention (RIT) 0 2 2 Response Ventilation 0 2 2 Water Supply - Pressurized 0 1 1 Forcible Entry Team 0 1 2 Laddering 0 0 2 Exposure Protection 0 0 2 Incident Safety Officer 0 0 1 Accountability 0 0 1 Rehabilitation 0 0 2 Minimum Firefighter Deployment 4 14 24 Appendix C: Clarington Fire Master Plan 2014, page 64 ERSR: May 2023 Clarington Emergency and Fire Services Page 24 of 53 Page147 Emergency Response Service Review: Clarington Emergency and Fire Services The Mutual Aid Program for the Region of Durham would be activated to access additional firefighting resources that may be required in the event of an extreme risk incident within Clarington. Staffing CEFS is a composite fire service with both full-time and part-time/volunteer fire fighters. CEFS has 64 full-time firefighters, divided into four (4) platoons in order to staff three (3) guaranteed response full-time trucks 24 hours per day 365 days per year. These three (3) crews respond from Stations 4, 1, and 2 which have been strategically located in the geographic areas that receive 92% of all of Clarington's emergency calls. CEFS has traditionally strived to fill the Council -approved 125 volunteer firefighters positions, comprised of 25 in each of Clarington's five 5 fire stations. Volunteer firefighters must live within 5 kms of the fire station and must respond to 30% of emergency calls. They carry a pager to alert them to when they are required. CEFS has experienced a declining interest in the number of volunteer firefighter applicants in recent years. Approximately 15 years ago it was not uncommon to receive 250 applicants, compared to our recent recruitment in 2023 which saw 75 applicants (3 applicants for Station 3) At the time of this report, Clarington has the following complement of volunteer firefighters: Station 1 15 Station 2 22 Station 3 20 Station 4 15 Station 5 12 Total 84 There are 18 volunteers currently completing recruit fire fighter training with an expected in-service date of July 2023, bringing total complement to: Station 1 25 (10) Station 2 22 (0) Station 3 21 (1) Station 4 20 (5) Station 5 14 (2) ERSR: May 2023 Clarington Emergency and Fire Services Page 25 of 53 Page148 Emergency Response Service Review: Clarington Emergency and Fire Services Total 102 Risk - There is a high attrition level in the volunteer ranks, as many are inevitably hired as permanent firefighters in other fire departments. The following chart shows CEFS volunteers and their start dates and illustrates this attrition challenge. New Recruit Attrition Rate Year ■ Initial Recruit class ■ Number remaining Observations from this chart include: Between 2015 and 2023, CFES has hired and trained 119 volunteer firefighters. At a cost of approximately $14,000 in today's dollars to train and equip each volunteer before they are placed into service, this is a financial investment of $1,666,000, or approximately $190,000 per year. Between 2015 to 2018, the average recruit class was 9.5 volunteer firefighters. Between 2019 to 2023, the average recruit class grew to sixteen (16) volunteer firefighters in an effort to replace a growing number of volunteer firefighters leaving the department. Between 2015 and 2022, CFES has lost 59 volunteers (57 in the chart, plus two more since this report was created), or almost 50% of the 119 volunteers hired over this eight (8) year period. The class of 2023 has not yet completed their recruit training, and one (1) volunteer has already resigned. A closer look at the volunteer attrition rate at each Station shows a more revealing picture. ERSR: May 2023 Clarington Emergency and Fire Services Page 26 of 53 Page149 Emergency Response Service Review: Clarington Emergency and Fire Services Station 1 New Recruit Attrition 2015 2016 2017 2018 2019 2020 2021 2022 2023 Year ■ Initial Recruit Class ■ Number Remaining Station 2 New Recruit Attrition 2015 2016 2017 2018 2019 2020 2021 2022 2023 Axis Title ■ Initial Recruit Class Number Remaining Station 3 New Recruit Attrition 2015 2016 2017 2018 2019 2020 2021 2022 2023 Year ■ Initial Recruit Class ■ Number Remaining ERSR: May 2023 Clarington Emergency and Fire Services Page 27 of 53 Page150 Oppr Emergency Response Service Review: Clarington Emergency and Fire Services Station 4 New Recruit Attrition 2015 2016 2017 2018 2019 2020 2021 2022 2023 Year ■ Initial Recruit Class Number Remaining Station 5 New Recruit Attrition .3 L u N 3 v z w 0 L E 3 z 2015 2016 2017 2018 2019 2020 2021 2022 2023 Year ■ Initial Recruit Class Number Remaining Chart Summar # of recruits remaining/# hired Station Between 2015 and 2022 Retention % Station 1 6/27 22% Station 2 16/26 62% Station 3 8/9 89% Station 4 9/21 43% Station 5 5/14 35% ERSR: May 2023 Clarington Emergency and Fire Services Page 28 of 53 Page 151 Emergency Response Service Review: Clarington Emergency and Fire Services Risk — The lowest retention rates are in Stations 1,4, and 5. Station 1 is particularly alarming. One (1) out of every three (3) volunteers who have left CEFS in the past 8 years have been from Station 1. It has the lowest retention rate of all CEFS fire stations. In the past three years, CEFS has spent $224,000 to train and equip sixteen (16) volunteer fire fighters at Station 1, and only four (4) remain. To better understand the volunteer firefighter model and its efficacy today, CEFS has undertaken a fulsome review through data collection and analysis. (Appendix A). A summary of the Volunteer Review and Analysis has concluded the following: • Costing - The total cost of the Volunteer program in 2022 was $1,153,215.53, comprised of $1,022,171.58 base cost of the program and the new recruit class cost of $131,043.95. This costing is not inclusive of the major capital assets associated with the Volunteer program such as fleet and buildings. • Turnover - Annual retention rates have significantly declined over ten (10) years while attrition rates have spiked. In 2022 CEFS had its lowest retention rate yet at 79% and highest attrition rate of 22%. For the five (5) years between 2013 and 2017 the average annual retention rate was 90%. For the five years between 2018 and 2022 the average annual Departmental retention rate has decreased by 10% from 90% to 81 %. Risk - The Volunteer Review and Analysis offers several reasons for this decline and anticipates that the decline will continue. CEFS has been stuck in a cycle in recent years of a constantly churning recruitment process to replace volunteer recruits who join CEFS with the goal of using their experience as volunteer firefighters to help them secure full-time firefighting careers elsewhere. This high turnover rate makes it challenging to invest in longer term training programs and initiatives, and as well makes it hard for full-time firefighters and volunteer firefighters to develop good working experiences together. ERSR: May 2023 Clarington Emergency and Fire Services Page 29 of 53 Page152 I Emergency Response Service Review: Clarington Emergency and Fire Services Performance In addition to the increasingly high volunteer firefighter attrition rate and the associated costs, there is also a change in the performance rates. The CEFS Review suggests a host of reasons for this decline, but the reality is that with fewer volunteer firefighters responding to calls today than in the past, program reliability has decreased. The Performance trend lines for each Station over the past 5 years show clear patterns. Station 1: 5 Year Average Number of Volunteers Responding Per Call 8 7 6.1 5.7 5.6 6 - � . 5.4 5 3 2 4.7........4.5..7:. 3.5 4 4 —'— Duty Response —*— Standby Response . • Linear (Duty Response) ..... Linear (Standby Response) Station 1 has seen a decrease in the number of volunteers responding when comparing 2022 with 2018, with approximately 15% fewer for duty response, and 20% fewer for standby. Station 2: 5 Year Average Number of Volunteers Responding Per Call 6 5.6 5.5 5.2 5.1 4.6 - 5 15 ...4.3..... • -- 4 3.8 3.7 3.9 3.5 3 Duty Response Standby Response inear (Duty Response) ..... linear (Standby Response) Station 2 is the only Station showing an upward trend when comparing 2022 with 2018, with approximately the same number for duty response, and an increase of 27.5% for standby. ERSR: May 2023 Clarington Emergency and Fire Services Page 30 of 53 Page153 Emergency Response Service Review: Clarington Emergency and Fire Services Station 3: 5 Year Average Number of Volunteers Responding Per Call 5.5 5.3 5.3 5 5�::� 4.9:.......:,s, 4.5 4.5 4.7 4.4 4 3.8 3.5 3 -41— Duty Response Standby Response - - Linear (Duty Response) Linear (Standby Response) Station 3 has seen a decrease in the number of volunteers responding when comparing 2022 with 2018, with approximately 10% fewer for duty response, and 14% fewer for standby. However, despite their downward trend in duty response numbers, it should be noted that Station 3 still has the greatest average number of volunteers (4.5) each time the truck responds from the station. 4— Station 4: 5 Year Average Number of Volunteers Responding Per Call 5 4.8 4.5 3.5 3.7. . 3 3.2 2.5 3.9 .. ... 3.1 3.1 •f— duty Response —+— Standby Response • • • • , Linear (Duty Response) ... Linear (Standby Response) Station 4 has seen a decrease of 16% in the average number of volunteers responding for duty response when comparing 2022 with 2018, and a decline of 15% for standby. ERSR: May 2023 Clarington Emergency and Fire Services Page 31 of 53 Page154 Emergency Response Service Review: Clarington Emergency and Fire Services Station 5: 5 Year Average Number of Volunteers Responding Per Call 5 4.5 4.2 38.. 3.9 3.5 3.5 3.3 .............. 2.5 2 2.3 —0— duty Response Standby Response Lineat(Duty Response) Lineat(Standby Response) Station 5 has seen a slight decrease in the number of volunteers responding for duty response, and approximately 23% fewer for standby in 2022 than in 2018. The performance numbers at each Station show a temporary increase in 2020 and 2021. This is also the time period when Covid-19 was causing many employers to offer remote work arrangements to their employees. It is possible that this may have impacted the volunteer program, with a greater number of volunteer firefighters being able to respond from home offices situated within 5 kms of their stations. Now that the impact of Covid is mostly over, average response numbers have returned to below pre- Covid levels. Quality CEFS has a robust training program that is designed, facilitated, and delivered by its Training Division. The Division is comprised of one Chief Training Officer and two Training Officers, reporting to the Deputy Chief of Training. The Department also utilizes a Shift Trainer Instructor model where a select number of firefighters receive specialized training in a limited number of disciplines in order to assist the Training Division in delivering hands-on training (ie, Water rescue, automobile extrication, hazardous materials, apparatus driver/pump operator, etc). In order to maintain a high level of response readiness, firefighters must train daily to ensure their skills are sharp and ready to be deployed within a second. Some emergency calls, including structure fires are high risk/skill, low frequency calls and must be practiced regularly for both service quality and firefighter safety. To be effective, training must mimic real life as closely as possible. To read about fire ground operations, or to watch video instruction or attend seminars on the latest fire ground techniques is good, but not effective as it could be without the ability to put it into practice. ERSR: May 2023 Clarington Emergency and Fire Services Page 32 of 53 Page155 Emergency Response Service Review: Clarington Emergency and Fire Services CEFS does not have a training/burn tower in which to train and practice its skills. CEFS is fortunate however to have access to the training compound in Wesleyville through an agreement with OPG. Firefighters travel on duty to Wesleyville once per year and are replaced on overtime by off -duty firefighters who are paid under the OPG agreement. The compound is used this one time per year by full-time firefighters to co -train with OPG to prepare for emergencies that could occur in the Darlington OPG site. CEFS also has the use of scrap vehicles that are delivered to its three (3) full-time fire Stations for practicing auto -extrication techniques and tool familiarity. Medical training is delivered by Base Hospital each year and conducted in each station. Crews also take advantage of opportunities presented by local property owners to practice water and ice rescue skills on their privately owned ponds. Risks - The Training Division has been very resourceful in piecing together a training program via the generosity of local residents, an agreement with OPG, and makeshift training areas in fire station parking lots. There are several limitations, however. In order to keep full-time trucks in their strategically located fire stations, fire crews must train in their station area. During recent ice/water training at a local privately owned pond off of Bowmanville Avenue north of Hwy 407, the crew from Station 1 was on the ice wearing cold water suits, and using ropes, flotation devices, etc. They were in service for the Station 1 area with a delayed response of several minutes. Because of this, the other two fire crews on duty from Stations 2 and 4 were positioned in their trucks on the response borders between their respective station and Station 1's response area for several hours. Once the crew from station 1 completed their training, they drove over to one of the staged crews to replace them. The replaced crew in turn travelled to the ice/water training location for their training. This was repeated again for the 3rd fire crew. With a total of 4 shifts, this scenario took place three (3) times per crew x four (4) days throughout the week to accommodate all firefighters from all 4 shifts. Throughout this training, emergency response times were delayed across the entire Municipality of Clarington. Risk - As well, ice/water rescue requires two trucks and eight (8) firefighters to be properly performed in an efficient and safe manner. Training was only able to be conducted with four (4) firefighters, augmented by two (2) training officers, and the shift training instructor for each crew. Risk - A similar limitation is in place with live fire training. It occurs once per year at Wesleyville. To work effectively and safely at the fire scene of a 2000 ft2 home with no basement and no exposures, a minimum of fifteen (15) firefighters (4 trucks) are required according to NFPA 1710. Without being able to conduct live fire training together on a regular basis, fire service quality may not be as good as it could be, and firefighter safety may become an issue. Quality is directly related to fire dollar loss, exposure protection, public injuries, business interruption, and environmental contamination. ERSR: May 2023 Clarington Emergency and Fire Services Page 33 of 53 Page 156 Emergency Response Service Review: Clarington Emergency and Fire Services Risk - While CEFS is appreciative for the opportunity to train with OPG at Wesleyville, the scenarios do not include residential fires, as OPG is not responsible for residential structures. This is a significant gap in its training program as the majority of fires CEFS faces are in residential occupancies. Furthermore, CEFS' role when responding to OPG is one of support, so it is not often that CEFS firefighters are exposed to live fire training in the interior of the training compound. 1 d) Growth Growing demand for emergency services. CEFS recently returned to its pre-COVID tiered response model which is anticipated to result in an additional 1200 medical calls per year. CFES is expected to respond to approximately 4,200 calls in 2023. Based upon a population of 104,000, this equates to one (1) emergency call for every 24.75 people. Risk - With 19,700 people projected to be added to Southwest and Southeast Courtice in the next several years, emergency response numbers are anticipated to increase for the Station 4 area by 796 calls per year, almost doubling its existing response numbers, at a 93.6% increase. ERSR: May 2023 Clarington Emergency and Fire Services Page 34 of 53 Page 157 Emergency Response Service Review: Clarington Emergency and Fire Services Risk -According to Clarington's Planning and Development Department, in addition to the Southeast and Southwest Courtice population growth numbers above, there will be an additional 62,000 people calling the south, urban portion of the Clarington community home in the coming years. At the existing emergency response ratio of one (1) call for every 24.75 people, it is anticipated that this will result in an increase of 2,505 emergency calls. Attachment t to PDS-028.23 Mitchell Active and Recently Completed Secondary Corners ® Plans and Subwatershed Studies B €g Courtice - Bowmanville Orono I > I - I c r,� m f �9-'RW r` I —Ma le Grove �` r I — 1 ri - - r i 1 - Ccurtice Vbterrront and Energy ParkCourticeTranart-Oriented Community and GO ScstbriA doted 2021 p ) Lake Onfar[D _ Pareweu Heigh - Soper Hills Southeast Courtice (Approved 2022) — aTer springs ® Snuth—t Courtice (Approved 2022) NORh Village IIL I Bovrmanville East UNan Centre - W I.d Creek Neighbourhood Rohinson Creek and Tooley Creek SudN,atershed Study —Adopted 2023) -B—irranville West Urban Centre and SO Station Area C Other EKistina Secondary Plan Areas Soper Creek Sub:eatershed StudyArea Active and Recently Completed Secondary Plans and Subwatershed Studies Renderings showing sample concepts for the Courtice Transit -Oriented Community Secondary Plan and GO Station Area ERSR: May 2023 Clarington Emergency and Fire Services Page 35 of 53 Page158 Emergency Response Service Review: Clarington Emergency and Fire Services Renderings showing sample concepts for the Bowmanville West Urban Centre and Major Transit Station Area Secondary Plan Public Technical Alternative Emerging Draft Statutory Recommended Region of Meeting and Background Land Use Land use Secondary Public Plan and Durham Council Options Plan Plan and Meeting Council Approval Authorization Guidelines Adoption Southeast Complete Courtice Southwest Complete Courtice Courtice TOC Next step and GO Station Area Courtice Next step Waterfront Park and Energy Park Farewell Next step Heights Bowmanville Next step West Urban Centre and MTSA %9" Next step Neighbourhood Bowmanville Next step East Urban Centre Soper Hills Next step Soper Springs Next step Wilmot Creek Next step Neighbourhood North Village Next step Secondary Plan / MTSA Estimated Units Estimated Population Southeast Courtice' 5,000 12,000 Southwest Courtice' 2,900 7,700 Courtice MTSA2, notel 13,100 19,365 ERSR: May 2023 Clarington Emergency and Fire Services Page 36 of 53 Page 159 Emergency Response Service Review: Clarington Emergency and Fire Services Secondary Plan / MTSA Estimated Units Estimated Population Courtice Waterfront and Energy Park' 1,000 2,400 Farewell Heights4 866 2,596 Bowmanville West Urban Centre and Major Transit Station Area' 8,000 12,135 Brookhill Neighbourhood' 2,700 7,400 Bowmanville East Urban Centre' 2,400 4,286 Soper Hills5 3,500 8,800 Soper Springs' 740 2,100 Wilmot Creek Neighbourhood' 800 1,600 North Villages 1,100 2,600 2) Developing Talent a) The new CEFS Mission statement says that CEFS is "An innovative service dedicated to protecting our community...". As an innovative service, CEFS is creating a continuous improvement committee to research leading edge equipment and techniques and to make recommendations to the Fire Leadership Team. Projects will be geared to making the services provided to the public more efficient and effective while being fiscally responsible, resulting in a safer community. The committee will be comprised of individuals who show potential, and have expressed interest in moving into future leadership positions in the Department and within the Municipality. They will be provided with project charters for each research project and will identify performance measurables including Key Performance Indicators (KPI) as well as return on investment. They will interact with other Municipal Departments and represent CEFS with external agencies and other municipalities. They will be exposed to staff in Financial Services, Clerks, Legal, Strategic Initiatives, and perhaps Council. They will be coached and supported by individuals on the Fire Management Team and will be required to make a presentation to the Fire Leadership Team upon completion. b) Traditionally in the fire service very little was done formally to ensure people were prepared for new positions. People who made great firefighters, did not necessarily have the skill set to make great Captains. The Province has recently enacted new legislation that requires those who wish to become Captains to complete an NFPA 1021 Fire Officer program as of July 1, 2026. This is the first time that credentials to become Supervisors in the fire service in Ontario has ever been legislatively required. This new standard of professionalism is long overdue and will have a positive impact on the fire service in Ontario, and in Clarington. ERSR: May 2023 Clarington Emergency and Fire Services Page 37 of 53 Page160 Emergency Response Service Review: Clarington Emergency and Fire Services In addition to this provincial legislation, CEFS is in the midst of developing its own leadership program for those progressing through the ranks via the Departmental promotional process. Captains will have to complete additional leadership training and projects to help prepare them to be the very best Captains possible. Also, those wishing to become Platoon Chiefs will be required to complete a more advance departmental leadership program as a promotional requirement, preparing them for the PC role and with some exposure to the Deputy Chief role. c) Not many staff in CEFS have taken advantage of the Municipality's education program. Courses are currently being identified for every position in CEFS that staff should consider taking on their own time to develop their skills for future positions. Having the Municipality invest into staff development sends a strong message that its people are important, and worthy of investment. Staff will be encouraged by the CEFS Leadership Team to take advantage of this program and to prepare to take the Department to new heights. 3) Driving for results and working with financial information Throughout this review several risks have been identified that may impact the ability of CEFS to continue to provide effective emergency response services. These risks have been organized into themes, followed by recommendations, including any associated costs, to drive results A. Volunteer program — embracing a new way of thinking B. Minimum staffing and depth of coverage C. Keeping up with growth D. Training E. Costs and KPIs A) Volunteer program — embracing a new way of thinking Declining Volunteer firefighter retention rates Throughout this services review, it has become clear that there is a volunteer retention issue. It is apparent that this problem is primarily occurring at Stations 1, 4, and 5 with retention rates of 22%, 43%, and 35% respectively over the past eight (8) years. Stations 2, and 3 do not experience the same high turnover rate, with retention of 62% and 89% over the same time period. This retention problem is getting worse. For the five (5) years between 2013 and 2017 the average annual retention rate for the Department was 90%. For the five (5) years ERSR: May 2023 Clarington Emergency and Fire Services Page 38 of 53 Page 161 Emergency Response Service Review: Clarington Emergency and Fire Services between 2018 and 2022 the average annual Departmental retention rate decreased by 10% from 90% to 81 %. The Volunteer Review and Analysis offers several reasons for this decline and anticipates that the decline will continue. CEFS has been stuck in a cycle in recent years of a constantly churning recruitment process to replace volunteer recruits who join CEFS with the goal of using their experience as volunteer firefighters to help them secure full-time firefighting careers elsewhere. This high turnover rate makes it challenging to invest in longer term training programs and initiatives, and as well makes it hard for full-time firefighters and volunteer firefighters to develop good working experiences together. Despite seeing average annual recruit class sizes of 16 people the past 5 years, compared to 9.5 in the five (5) years prior to that, CEFS has seen its volunteer compliment drop from an average of 114.6 from 2013-2017, to 97.6 from 2018-2022. In other words, despite recruit class sizes being 68% larger now than 5-10 years ago, due to the high volunteer attrition rates the number of volunteers employed by CEFS is 15% lower now than 5-10 years ago. CEFS cannot hire enough people to keep up with the number of people leaving. This loss and replacement cost equates to approximately $238,000 in recruitment and training value. Another consequence of the low volunteer retention rate is that the program is primarily composed of young volunteers with less experience than has been seen in the past. As the senior volunteer staff are beginning to retire this year and next, there is an experience gap to the next level of volunteers. This will result in a leadership group who is not as prepared and experienced as what we have seen. This problem will only continue to worsen as the retention rates continue to decline. Parfnrmanra This review shines a light on the reliability of the volunteer program. Traditionally the volunteer program has been relied upon for `depth of coverage' response. The initial response is provided by the full-time trucks, with the volunteer program providing support functions and relieving full-timers as part of the coverage depth. They also are primarily responsible for transporting tanker trucks to structure fires, and in some instances, primarily Stations 3 and 5 responding as the initial truck. However, in recent years, there has been a growing trend of the volunteer program not being as reliable as it once was. This is particularly evident in Stations 4 and 5 where the number of individual volunteers responding has dropped over the past 5 years and is expected to continue to do so. Strategic Deployment of Resources ERSR: May 2023 Clarington Emergency and Fire Services Page 39 of 53 Page 162 Emergency Response Service Review: Clarington Emergency and Fire Services With the lowest emergency community call demand (95) per year, equipped with the smallest volunteer complement, the most challenging one for which to recruit, and the lowest individual volunteer firefighter response rate, consideration should be given to no longer continuing with Station 5 as a volunteer fire Station. With the growing emergency service demand in the Southern urban centers, the funds used to maintain Station 5 and the fire crew might be more wisely invested in the growing South portion of Clarington. With no plans in place for significant housing growth in the Station 5 area, emergency call demand is not anticipated to grow in the coming years. An additional full-time fire station is proposed for Liberty and Concession 4 with a response time (turnout time + travel time) that would be similar to the existing Station 5 response time to its coverage area. In 2020, the 90t" percentile turnout time of the volunteer program at Station 5 was approximately 7.75 minutes, while the turnout time at Station 1 was approximately 1.75 minutes. Turnout time is the time it takes upon a truck receiving an alarm from Dispatch to when the truck leaves the station to respond to the call. Upon receiving an alarm, the truck at Station 1 is on the road, travelling to the Station 5 response area for six (6) minutes before Station 5 is able to respond, resulting in almost the same coverage without Station 5 being operational. 2) Minimum staffing and depth of coverage While the majority of the urban centers in Clarington can be reached within a four (4) minute travel time, there are several response gaps, particularly in the most populous urban center. Over half of Bowmanville is outside of the four (4) minute travel time. As well, with Bowmanville experiencing the greatest demand for emergency service (almost 50% of emergency calls), there is a risk of further response delays should a call for emergency service be received when the Station 1 Bowmanville truck is engaged in another emergency call. Clarington is served by three (3) full-time fire trucks, each staffed with five (5) firefighters. Depending upon vacation time, sick time, wsib, parental leaves, etc, the staffing of each truck is most often at four (4) for a shift total of twelve (12) firefighters on duty. On these occasions, Clarington cannot meet the NFPA best practice of fifteen (15) firefighters on scene in eight (8) minutes without the use of volunteer firefighters. To conduct fireground operations with fewer than fifteen (15) firefighters particularly in non-hydranted areas where multiple staff are required to continuously shuttle water back and forth from a water source miles away to the fire scene, there is an impact on the quality and safety of the service being delivered. It is also not uncommon during summer months for staffing levels to go to three (3) per truck for a total of nine (9) per shift. In these instances, having only nine (9) firefighters severely restricts fire ground operations. Lastly, having three (3) firefighters arrive as the initial fire crew instead of ERSR: May 2023 Clarington Emergency and Fire Services Page 40 of 53 Page 163 Emergency Response Service Review: Clarington Emergency and Fire Services four (4) places restrictions on fire operations that can be performed, including interior firefighting and search and rescue. CEFS is the only fire service among the south Durham municipalities that runs with three (3) full-time staff on a pumper truck. 3) Keeping up with growth CEFS has recently returned to its pre-COVID medical tiered response model. Prior to COVID, CEFS responded to reports of chest pain, and difficulty breathing. With the onset of COVID, to help prevent potential exposure to COVID these calls were suspended. In the first quarter of 2023, the decision was made by the Fire Chief to re- institute a response to this community need. As a result, it is anticipated that our Departmental emergency call volumes will increase by approximately 1,200 calls per year. This increase will result in our full-time trucks being unavailable to respond to other calls more often than in 2022. With the growth beginning in the Southeast and Southwest Courtice area, call volume will increase significantly and will become comparable to that of the Bowmanville area. With 19,700 people projected to be added to Southwest and Southeast Courtice in the next several years, emergency response numbers are anticipated to increase for the Station 4 area by 796 calls per year, almost doubling its existing response numbers, at a 93.6% increase. With this increase in emergency calls, Bowmanville will be left unprotected, along with Courtice during all two truck and higher emergency responses. Together, Bowmanville and Courtice call volume will account for approximately 85% of all emergency call demand, leaving these urban areas unprotected on a daily basis while other calls are being attended to throughout Clarington by stations 1 and 4. According to Clarington's Planning and Development Department, in addition to the Southeast and Southwest Courtice population growth numbers above, there will be an additional 62,000 people calling the south, urban portion of the Clarington community home in the coming years. At the existing emergency response ratio of one (1) call for every 24.75 people, it is anticipated that this will result in an increase of 2,505 emergency calls. It will be difficult for these calls to be addressed with CEFS existing complement of resources. 4) Training The ability for a Fire Service to effectively train is the most critical component related to its ability to provide effective, quality, safe services. Fire Services that conduct frequent, consistent hands-on training in the myriad of emergency operations that they will be ERSR: May 2023 Clarington Emergency and Fire Services Page 41 of 53 Page164 Emergency Response Service Review: Clarington Emergency and Fire Services engaged in, are able to limit the consequences of emergencies, including injuries, property loss, business interruption, environmental impact, and fatalities. CEFS does not currently have a training compound in which to conduct hands-on training. Fire station parking lots are used for vehicle related training and for small training props such as forced door entry. However, CEFS cannot conduct hands-on training in its core function of fire ground operations, with the exception of the use of the Wesleyville fire tower once per year. Regional comparators in Ajax and Oshawa train regularly at their own fire towers, with Whitby constructing one in 2024, and Pickering with plans to construct one at their next new Station. To be effective, training should mimic what fire personnel will face in a real emergency. Therefore, the ability to conduct hands on training, particularly live fire with more than one truck is essential. With its current staffing deployment, CEFS cannot do this without incurring overtime costs, or without leaving one of its fire response areas with at worst, no response, and at best a delayed response. The current Fire Chief will not engage in training with a delayed or non -guaranteed response, leaving overtime as the only option for multiple truck training. This option is costly, particularly if done on the regular, consistent basis that is required. 5) Driving for Results and working with Financial Information Option 1: 1) Redesign the volunteer firefighter program. Suspend the program at Stations 1, 4, and 5 upon the staffing of another full-time truck at Liberty and Concession 4, and continue with the volunteer program at Stations 2 and 3. Stations 2 and 3 have the best volunteer retention rates, the best performance rates, and are strategically positioned to service the far Eastern and Northern segments of Clarington, as well as Highways 401 and 115. Stations 1 and 4 have the lowest volunteer retention rates and have the highest call volume demand. If the volunteer program is to continue at these two Stations, it is imperative that the number of volunteers be kept at the maximum capacity of twenty-five (25). This will require constant recruitment and training cycles to ensure volunteers are replaced and trained as they leave. With the impending community growth, Stations 4 and 1 will receive approximately 85% of all emergency call demand, and the demand of volunteers to respond, particularly during weekdays will increase. Emergency call volume is increasing in Stations 1 and 4, while at the same time the volunteer hiring pool is ERSR: May 2023 Clarington Emergency and Fire Services Page 42 of 53 Page165 Emergency Response Service Review: Clarington Emergency and Fire Services decreasing. It is becoming increasingly difficult to hire enough volunteers to replace the number that are leaving each year. It is not a good business model. Station 5 receives approximately 95 emergency calls per year. Their hiring pool is approximately 452 people, and their retention rate is 35%. There is no growth coming to the area so the emergency call demand is not anticipated to increase. The money that is invested here could be better utilized in areas with growing demand. The area can be serviced by Station 1, and a new Station being proposed to be constructed with little if any reduction in emergency response time. Begin to provide minimum staffing of four (4) firefighters on all full-time trucks. (see the overtime risk section following Option #1) 2) Build a new fire station on the site of the Operations facility being constructed at Liberty and Concession 4 and hire firefighters to staff an additional fire pumper truck responding from this location. This new fire station will serve a portion of Bowmanville that sits outside of the Station 1 response area. It will also provide depth of coverage to properties in Stations 1, 2, and 4 response areas, ensuring that CEFS can meet the NFPA best practice of 15 firefighters within eight (8) minutes, 90% of the time. The new station will provide improved response coverage to hamlets including Hampton, Mitchell Corners, Tyrone, the 407 and other adjacent areas. It's response time to Enniskillen will be almost the same as what Station 5 can provide currently, while ensuring a guaranteed response. It will provide depth of coverage as a faster second -in vehicle to Orono to help support the Volunteer Station. ERSR: May 2023 Clarington Emergency and Fire Services Page 43 of 53 Page166 S Emergency Response Service Review: Clarington Emergency and Fire Services TOWNSHIP j OFSCUGOG � j a a Travel Times"1111111 —-7-7- 1 , - 4 Minutes from Station C `ncession Rd9i Concession Rd 9 Regional Rd 20 r 1! F.— t Regional Rd 3 Co cession Rd 7 i CITY OF - m m t r. canaraska Road10 ••-;, - 0SHAWA' \��.--� C t f i c `'raunt°n toad -_1— Fire.Station ' Nora m Potential Fire Station No Pebbles[°— Road Y =I q rR E 3 ! Fire Station 0° A s 0 e o .2 ! v p Nash Road Concesalbn Rd'3 ? , 2 C i' �R°9°daffy � Fire Station No � ? o - Blaorstreat �"�y? � 1 Headquarters � vConceason Rd 3 - Rey,o aI Fire Station h..I _ t: $ Baseline Road Basegne Road Pastn HIg(,wayZ No 2 _ al'Nighrra_Zs, Lake Ontario - ! Potential Fire Station Map Travel Times 3) Build a training compound on the site of the Operations facility at Liberty and Concession 4. The training compound is desperately needed. Firefighters rely heavily on real - life practical training. There is a significant opportunity for a dramatic improvement in this area, which will lead to improved service quality, and firefighter safety. 4) Renovate fire station 1 to accommodate an additional fire crew and hire fire- fighters to staff an additional truck to respond from this location. Hire an additional non-affiliated Administration person to manage the increase in administrative work resulting from the increase in fire stations/structures and personnel. The majority of growth coming to Clarington is in the Courtice and Bowmanville areas, served by Stations 1 and 4. Having a two -truck Station at Station 1 ERSR: May 2023 Clarington Emergency and Fire Services Page 44 of 53 Page167 Emergency Response Service Review: Clarington Emergency and Fire Services provides the depth of coverage that is needed, and will continue to be required as this area grows. In a few years, Courtice and Bowmanville will generate 85% of all emergency calls that occur in Clarington. It is essential that CEFS has four guaranteed response, full-time trucks responding, two from Station 1, one from Station 4 or 2, and one from the new Liberty Station, in order to meet the NFPA best practice standard of four (4) firefighters on scene in four (4) minutes, and a total of fifteen (15) in (8) minutes, 90% of the time. Having a two truck Station at Station 1 also allows for a truck to be placed into training on a delayed response, while still having coverage at all 4 Stations. This is a significant improvement as training currently only takes place at the expense of response times to emergency calls. Implementation plan for Option 1: Staff up by hiring an average of ten (10) full-time firefighters in each of 2024, 2025, 2026, 2027 2024 Hire ten (10) full-time firefighters and place them into service in 2024 as additional staff in existing Stations (3,3,4) ($1.4 mil at first class - $180k set aside in 2023) = $1.22m = 1.79% Begin construction of new fire station and training compound in 2024 at the new Operations facility (Liberty and Concession 4) to be completed in 2025. (Capital funding of $6.8 million has been included in the Municipality's Development Charges Study for a new fire station in 2028. Funding should be sufficient for the construction of the new station and the training/burn tower. 2025 Hire thirteen (13) full-time firefighters and place them in into service in 2025 in the new Liberty Fire station. Move the ten (10) firefighters hired in the previous year to the Liberty Fire Station to place an additional truck into service. Close fire station 5. Discontinue the volunteer program in Stations 1, 4, 5 (save $720k annually) ($1.82m - $720k = $1.1 m) = 1.62% savings. Relocate the CEFS Administration, Management, Logistics, and Training staff from Station 1 to the Liberty Fire Station. ERSR: May 2023 Clarington Emergency and Fire Services Page 45 of 53 Page168 Emergency Response Service Review: Clarington Emergency and Fire Services 2026 Hire 8 new firefighters and place them into service as additional staff in existing Stations (2,2,2,2) ($1.12 mil), and 1 additional Administration person ($100,000) = 1.79% Renovate Station 1 to accommodate an additional fire crew to be added in 2027 and centrally located Fire Prevention Offices. (Use existing capital funding of $1.8 million set aside for a Station 1 addition in 2024) 2027 Hire 9 new firefighters and place them into service in the re -designed Station 1 to place an additional truck into service ($1.26 mil) = 1.85% Relocate Fire Prevention staff from Station 4 to Station 1 to centrally locate service to residents. By 2027: Station 1 — 2 f/t trucks Station 2 — 1 f/t truck Station 4 — 1 f/t truck New Station — 1 f/t truck, Admin, Training, Logistics Station 3 — Orono — continue as a volunteer station Station 2 — Newcastle — continue as a composite station Truck inventory Proposed Aerial 11 2007 1 Ascendant - front line pumper/aerial (sell one aerial -1) Aerial 12 2013 1 Aerial Pump 10 2016 5 ft pumpers Pump 11 2022 2 vol pumpers Pump 12 2012 2 Super tankers (+2) Pump 13 2008 2 spare tankers (sell 3 tankers - 3) Pump 14 2015 1 Rescue Pump 15 2018 Pump 1-22 2016 Pump 1-44 2005 Tanker 11 2019 Tanker 12 2004 Tanker 13 2007 ERSR: May 2023 Clarington Emergency and Fire Services Page 46 of 53 Page169 Emergency Response Service Review: Clarington Emergency and Fire Services Tanker 14 2019 Tanker 15 2010 Rescue 11 2006 Totals 2 Aerials 1 Aerial 8 Pumpers 1 Ascendant/pumper, 8 pumpers (4 f/t, 2 volunteer, 2 spare) 5 Tankers 4 tankers (2x3500 gallons, 2x1500 gallons) 1 Rescue 1 Rescue Total 16 Total 15 Reduce fleet by 1 truck 2023 Buy 2 super tankers to replace three (3) Tankers (2004, 2007, 2010) (in service by 2025). Sell three (3) tankers. New total of 4 tankers (2 Supers x 2024, 2 small x 2019). Requires fewer firefighters to operate, lowers truck service and operating costs, provides water more effectively. Sell Aerial 11 (2007) and replace with Ascendant (pumper/aerial combination) (in service by 2025). Replaces two trucks (aerial and pumper) with one that is better suited to a higher density community. Existing capital dollars have been approved in the 2023 budget for the purchase of replacement fire trucks. 4tatinn 1 1 Pumper -Crew 1 1 Ascendant - Crew 2 1 new four Seat Tanker 1 Spare pumper Crew 1 — pumper for all first -in calls Crew 2 - Ascendant for hydrant areas — jump to 4 seater tanker for non -hydrant areas, or spare pumper for non -hydrant areas if Crew 1 is tied up at a call Station 2 1 Pumper 1 new four seat tanker (volunteers) 1 Spare pumper (volunteers) ERSR: May 2023 Clarington Emergency and Fire Services Page 47 of 53 Page170 Emergency Response Service Review: Clarington Emergency and Fire Services Pumper for all first in calls - crew to jump to 4 seat tanker for third -in non -hydrant areas Station 3 1 Pumper Station 4 1 Pumper 1 Aerial 1 Small Tanker Pumper for all first -in calls. Crew to jump to Aerial for all second -in hydrant calls. Jump to Tanker for all second -in or higher non -hydrant calls. New Libertv Station 1 Pumper 1 Small Tanker 1 Rescue Spare pumper Pumper for all first -in calls. Crew to jump to small Tanker for all second in non -hydrant calls. Jump to rescue for all 4t"-in fire calls. Risks of implementing Option #1 Overtime costs In order to operate safely and to meet the needs of the community, CEFS will need to staff a minimum of 4 firefighters per truck at all times. This means that when a firefighter is unable to report for duty due to vacation, WSIB, long-term disability, parental leave, sickness, and the staffing level on the truck drops below four (4), their shift must be backfilled by an off -duty firefighter. The replacement firefighter would be paid at an overtime rate of time and a half for the duration of the 24 hour shift. This overtime cost can add up and become quite costly. To keep overtime occurrences low CEFS will deploy a four -step approach: 1) Currently, with the complement of 64 firefighters and 3 full-time trucks in service there are 1095 vacation spots available (365 x 3) to be selected in the vacation calendar each year, and a requirement of 924 shifts to be selected per the Collective Agreement. This leaves a balance of 171 shifts where no vacation ERSR: May 2023 Clarington Emergency and Fire Services Page 48 of 53 Page 171 Emergency Response Service Review: Clarington Emergency and Fire Services time is selected resulting in 5 firefighters on the trucks for these shifts. Should someone call in sick on one of these shifts, the staffing would be reduced from five (5) to four (4), and no overtime would be required. This is a buffer of one (1), before overtime is required for these 171 shifts. With the hiring of the additional forty (40) firefighters, the total full-time compliment will increase from 64 to 104, and full-time trucks in service from three (3) to five (5). This will result in additional vacation time being required to be booked per the collective agreement in the vacation calendar. Vacation allotment will increase from 1,095 to 1,364. The maximum number of firefighters allowed off at one time would increase, but would be capped at four (4), resulting in a capacity of spaces available of 1,460. This would result in a buffer of one (1) spot on each of the 365 calendar days, and an additional buffer on 96 shifts. In other words, one (1) firefighter could be off sick, WSIB, parental leave, etc above and beyond vacation every day for 365 days, and the minimum staffing level would not drop below four (4) and no overtime would be required. For 96 of these shifts, there would be capacity for two (2) people to be off sick, above and beyond vacation before overtime would be required. 2) In addition to the buffer being created from step one (1), CEFS would permit the Aerial/pumper on the second crew at Station 1 to go down below four (4) staff to three (3) staff before overtime was called in. This would create an additional buffer 365 days per year for a total buffer of two (2) people calling in sick, off on WSIB, parental leaves, etc before overtime would be required to be called. 3) Thirdly, as part of the OPG agreement and in speaking with OPG representatives, their expectation is that fire trucks responding to OPG for emergency calls would be staffed with a minimum of four (4) firefighters per truck. A portion of the annual funding provided by OPG would be used to fund any overtime required on those trucks that could respond to OPG. This would cover 133 overtime shifts. 4) Lastly, sick time accountability is being increased. Firefighters who are off on non -culpable absences will not be held accountable. They will however be offered resources and support from Fire Management to return to work. However, those who abuse leaves and sick time will be monitored and will be required to go through additional measures, encouraging them to only call in sick when they are sick. Applying more consistent and measured requirements to those who may be abusing leaves will reduce sick time use and reduce the need for overtime shifts. Option #2 ERSR: May 2023 Clarington Emergency and Fire Services Page 49 of 53 Page172 Emergency Response Service Review: Clarington Emergency and Fire Services Keep the volunteer program as it is designed and create a CEFS school to train those who would like to be volunteers and who will commit to staying as such for at least five (5) years. This is an intriguing idea that may remove some obstacles to entry into the volunteer firefighting role. Barrier — financial cost for certification. As of July 2026, all firefighters in the province of Ontario must be certified to NFPA 1001 and 1002 standards. The cost to obtain these certifications in privately run schools is approximately $12,000 to $15,000 per person. In anticipation of this new legislative requirement, CEFS began requiring all applicants to be certified as a requirement of employment during its most recent recruitment. This change appears to have impacted the applicant pool resulting in primarily attracting those individuals who have a career goal of becoming full-time firefighters. This in turn, exacerbates CEFS's retention problem. Volunteers remain with CEFS for a year or two until they receive full-time firefighter employment with another Service and then resign from their volunteer position. Those who may wish to become and remain as volunteer firefighters in Clarington, with no intention of becoming full-time firefighters may not be willing to pay the $12,000 to $15,000 necessary to obtain the mandatory certification. CEFS would remove this cost for those who would commit to remain as volunteer firefighters. By removing this financial entry barrier, CEFS may see an improvement in retention numbers as those who want to remain strictly as volunteer firefighters with CEFS may apply. There are however some challenges with this model. The purpose of the model would be to improve retention numbers. CEFS would not be able to differentiate between those who will remain as volunteers in Clarington, and those who intend to leave to become fulltime. Therefore, the school model would have to be available to all applicants who live within five (5) kilometers of a Clarington fire station. Secondly, requiring volunteers to stay with CEFS after they are hired somewhere as fulltime firefighters has its own unique challenges. Many fire services still pressure double - hatters to resign their volunteer positions once they are hired as full-time firefighters. If a CEFS volunteer decides to resign from their volunteer position prior to the five (5) year mark, what recourse does Clarington have? As part of a person's volunteer employment offer an agreement could be made for the person to repay their certification costs if they leave within five (5) years, and CEFS would recruit to replace them again. Further consultation is required to determine if this is legally permitted. As well, how feasible would it be for Clarington to successfully collect the money owed? At the end of the day, while Clarington may be able to be re-imbursed, this option may not solve the CEFS retention problem. It may be worthwhile combining the CEFS certification school option with Option #1 of this report as a trial to see if it increases the number of long -serving volunteers joining Stations 2, and 3. ERSR: May 2023 Clarington Emergency and Fire Services Page 50 of 53 Page 173 Emergency Response Service Review: Clarington Emergency and Fire Services Option #3 Do nothing. With the decline of the volunteer program, and the growth that is imminent in Clarington, it is inevitable that the decision to begin to move from volunteers at all Clarington Fire Stations to a Department comprised of a greater number of full-time fighters will need to be made at some point. It is apparent that the money being spent on the volunteer program may be invested in a manner that serves the Clarington community in a more effective manner. The Fire Chief has met one on one with several experienced volunteers to solicit their ideas as to how to improve the recruitment and retention struggle being faced in CEFS. There are lots of identified challenges but no answers. It has been made clear that CEFS is not the only Department going through this transformation. OPG, who also has a fire brigade that is used as a launching pad for those interesting in becoming full-time municipal firefighters faces the same attrition struggles. It has lost 33 of its last 71 firefighters hired to other Fire Departments. Articles about the volunteer firefighter recruitment and retention crisis include the following. https://www.thestar.com/news/canada/2021/01/10/attracting-retai in u nteer-firefighters-a- cStationenge.html https://www.cbc.ca/news/canada/fire-volunteer-firefighters-canada-1.4119003 Final recommendation: Proceed with Option #1 and pursue what would be involved in creating an internal volunteer firefighter school for the Volunteer program at Stations 2 and 3. If Clarington did not have the volunteer firefighter program, it would not have enough fire fighters and staffed fire trucks to service the existing emergency service demand. Clarington has relied heavily on this program to meet community need. However, the program has changed. This review has shown that for a whole host of reasons, including firefighter certification, a decreasing volunteer applicant pool, and a decreasing performance/turnout rate, the volunteer program can no longer be relied upon as it once was. With the growth that is upon the urban areas of Clarington, it is time to move towards more full-time firefighters and trucks, and away from as many volunteers and volunteer trucks. The recommended option in this review achieves a balanced approach in order to be fiscally responsible to the taxpayer. The recommendation supports continuing with the volunteer program where it is working (Stations 2, 3), while removing it where it is not (Stations 1, 4, 5) and re -investing these funds into a guaranteed service response in the high service demand areas. ERSR: May 2023 Clarington Emergency and Fire Services Page 51 of 53 Page 174 Emergency Response Service Review: Clarington Emergency and Fire Services Recommendation Summary • Discontinue the volunteer program in 2026 in Stations 1, 4, 5 • Build fire station/training facility with new Ops Center at Liberty/Concession 4 • Renovate Station 1 to become 2 truck hall • Hire 40 full-time firefighters for 2 additional trucks at Liberty Station and Station 1 • Maintain volunteer program at Stations 2, and 3 • Consider a recruitment/training volunteer firefighter school for Stations 2, and 3. 2024 • Hire 10 additional f/t firefighters in existing Stations 1.79% • Begin construction of new Liberty fire station and training compound at the new Operations facility to be completed in 2025/26. (DC funding) 2025 • Hire 13 additional f/t firefighters. Place truck in service in Liberty Station. 1.62% • Discontinue the volunteer program in Stations 1, 4, 5. Close Station 5 building. • Relocate the CEFS Administration, Management, Logistics, and Training staff from Station 1 to the Liberty Fire Station. INIXIS • Hire 8 additional f/t firefighters in existing Stations and hire 1 additional Administration person.1.79% • Renovate Station 1 for an additional fire crew to be added in 2027 (DC funding) 2027 • Hire 9 additional f/t firefighters. Place truck into service in Station 1. 1.85% • Relocate Fire Prevention from Station 4 to Station 1 to centrally locate service. ERSR: May 2023 Clarington Emergency and Fire Services Page 52 of 53 Page175 Emergency Response Service Review: Clarington Emergency and Fire Services Appendices Appendix A: Volunteer Suppression Model — Review and Analysis Appendix B: Clarington Fire Master Plan 5-11-2023, pages 28-59 ERSR: May 2023 Clarington Emergency and Fire Services Page 53 of 53 Page176 Appendix A: Volunteer Suppression Model — Review and Analysis VOLUNTEER PROGRAM ANAL PSIS Clarington Emergency and Fire Services: Volunteer Suppression Model Volunteer Model Analysis (VMA) April 29, 2023 Page177 PF Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services Table of Contents ExecutiveSummary........................................................................................................ 2 Introduction and Background.......................................................................................... 3 Objectives and Data Collection Plan............................................................................... 4 Objectives.................................................................................................................... 4 DataCollection Plan....................................................................................................4 DataSources............................................................................................................5 Accuracy and Confidence Rating.............................................................................. 5 CurrentSituation Analysis............................................................................................... 6 Overall Cost of the Volunteer Program........................................................................ 6 Regular Volunteer Program Cost Breakdown........................................................... 8 New Recruit Class Cost Breakdown....................................................................... 12 Retention.................................................................................................................... 15 VolunteerRetention Data....................................................................................... 19 New Recruit Retention Data................................................................................... 20 Response Rate Actuals............................................................................................. 20 Five Year Response Instances and Average Number of Volunteers Responding.. 21 Five Year Duty Responses and Standby Statistics ................................................. 23 Five Year Average Number Volunteers Responding Per Station ........................... 24 Overall Response Statistics....................................................................................... 27 Threats and Mitigation Strategies for the Volunteer Program ........................................ 29 Conclusion.................................................................................................................... 31 VMA: April 2023 Clarington Emergency and Fire Services Page 1 of 32 Page178 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services txecutive Summary Clarington Emergency and Fire Services (CEFS) as a composite department is experiencing increasing external threats to its Volunteer Suppression Model. Socioeconomical factors, legislative changes, geographic constraints, and Volunteer labour shortages are impacting the efficacy of the Volunteer environment not just in Clarington but for all Volunteer Fire Departments across Ontario. As a result of these challenges, there has been a noticeable decline in the retention of Volunteers within our current complement. Combined with the rapid growth that Clarington as a Municipality is experiencing, it is critical for CEFS to complete a review of our existing services and models to ensure we can continue to operate as efficiently as possible while continuing to deliver services to the community we serve and plan for the future. Therefore, a full analytical review was required to be completed specifically for the Volunteer Suppression Model in the department. To ensure an accurate assessment of the Volunteer Program, a robust data collection plan was created based on four (4) major assessment objectives; the overall cost of the Volunteer program, retention and attrition rates, response rate actuals for each station, and the overall call volumes of CEFS including calls specific to the Volunteer complement. Through this review, the following elements were identified; • The total cost of the Volunteer program in 2022 was $1,153,215.53, comprised of $1,022,171.58 base cost of the program and the New Recruit class cost $131,043.95. This costing is not inclusive of the major capital assets associated with the Volunteer program such as fleet and buildings. • Annual retention rates have significantly declined over ten (10) years while attrition rates have spiked. In 2022 CEFS had its lowest retention rate yet at 79% and highest attrition rate of 22%. We are generally operating at around 77.6% of our full complement. • Five (5) year response actuals saw a decline in the number of duty responses and standby instances with an average of 3.8 volunteers attending each call. • 69.6% of CEFS's 2022 total call volume required Volunteer response. Total calls attended by Volunteers decreased to 47.6% from 2013 to 2022. During this same period, the total calls where Volunteers responded had a reduction to 52.6%. Going forward, continued data monitoring should be completed to continuously measure the efficacy of the Volunteer Program. These efforts should be expanded into additional areas including major capital asset costs as they relate to the program. Additionally, CEFS should review the compensation model for Volunteers, complete an engagement survey to identify potential culture issues, and develop a creative recruitment and retention strategy to attract and retain more long-term Volunteer applicants as potential mitigation strategies. VMA: April 2023 Clarington Emergency and Fire Services Page 2 of 32 Page 179 PF Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services Introduction and Background CEFS is a composite fire department consisting of full-time and part-time suppression firefighters. As the largest geographic municipality in the Durham Region, Clarington is made up of four (4) urban centers and fourteen (14) hamlets, creating a blend of urban and rural firefighting elements. Clarington in terms of an Emergency and Fire services perspective is highly unique. With it's several major series highways, nuclear and agricultural sectors, protected green spaces, increased economic development in both commercial and industrial sectors, increased high density planning and development, and with the incoming Go - transit expansion, Clarington as a municipality is growing exponentially and with this growth comes opportunities and challenges to our municipal services. As the rapid growth in Clarington continues, it is important that as a department, CEFS reviews and assesses its existing services and models to determine their efficiency and effectiveness to meet the demand that growth inherently creates. Part of this assessment includes reviewing the traditional suppression model that CEFS has operated with since its inception as a department. This report focuses on the data collection and analysis of Clarington's Volunteer Suppression Model. This model has experienced a notable decline in the number of Volunteers it carries over the last several years and there are continued external elements that threaten the overall efficacy of this model. Therefore, it was prevalent that a thorough review of this program be completed to concretely measure its overall effectiveness and how we can leverage opportunities to improve our suppression services going forward. Over the course of several weeks, over a decades' worth of raw data was pulled to assess various levels of the Volunteer Program. This includes the overall Volunteer retention and attrition rates, the overall cost of maintaining the Volunteer Program, and additional cost factors associated with an annual Recruit Class. In addition to this, actual response statistics were collected and compared against overall response statistics of the Volunteer Program through a five (5) and ten (10) year lens. To determine the overall efficacy of the Volunteer Suppression Model in Clarington, it was critical to utilize data and analytics to maintain an unbiased and neutral assessment by letting the numbers speak for themselves. Therefore, a comprehensive and objective data collection plan was created and followed. The data that was collected and presented in this report originated from real department and organizational records and was collected and vetted over the course of several weeks to accurately depict the current situation analysis of the volunteer program. VMA: April 2023 Clarington Emergency and Fire Services Page 3 of 32 Page180 PF Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services Objectives and Data Collection Plan To measure and review the analytics specific to the current situation of the Volunteer Program in Clarington, it was prevalent to first get a firm understanding of the critical factors that needed to be assessed. Once the objectives were determined, the next step was to create a fulsome Data Collection Plan (DCP). The below sections identify the objectives of the data collection process as well as the collection plan used to capture the necessary evidence that speaks to the Volunteer Program as a whole. Objectives The scope of this analytics report focused on four (4) major objectives to assess the overall efficacy of the Volunteer Program. 1. Overall Cost of the Volunteer Program; • Annual cost of the volunteer program and the annual per person cost. • The annual base cost of the program (excluding new recruits). • New recruit class cost. 2. Volunteer Retention; • Ten (10) year and five (5) year Retention and Attrition Rates. • Annual Retention and Attrition Rates over a ten (10) year period. • Ten (10) year staffing levels and headcounts. • Average staffing levels and termination rates. • New recruit class staffing levels and attrition rates. • Long term Volunteers as an expression against the current complement. 3. Responses Attended; • Five (5) year overall response statistics of Volunteers including response trends. • Average response rates for each Station. • Average number of people responding per response type (Duty Response and Standby). • Overall response rates and average number of people responding. 4. CEFS Call Volumes; • Ten (10) year total CEFS call volumes and total Volunteer call volumes • Call volumes and response rate trends • Total number of Volunteers responding on scene and no responses. • Call volume opportunity costs to the Volunteer Program. Data Collection Plan Developing a solid DCP was critical to effectively capture the essential data sources that exhibit the objectives of the Volunteer Model analysis. The DCP included an VMA: April 2023 Clarington Emergency and Fire Services Page 4 of 32 Page 181 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services assessment on the types of raw data and data sources that were required, where the data was located, how to access and pull the data, and the length of time required for the data collection period. The data included in this report represents over ten (10) years' worth of data and was collected over the course of several weeks. Data Sources Most of the data collected was obtained through department and corporate records consisting of a variety of formats. The below list identifies the data sources used to obtain the necessary data elements; • CriSys (Dispatch System) reports for historical and current call volumes, calls requiring Volunteers and various call data. • Volunteer biweekly payroll records for actual response attendance records and per station data. • Department and corporate payroll records (inclusive of overtime records) for costing elements. • Operating and Capital Budgets for costing elements. • Department usage statistics, equipment, consumables and invoices for costing elements. • Department records and databases related to Volunteer staffing, new recruits and the overall complement. Accuracy and Confidence Rating One of the most important factors in the data collection process was to ensure the integrity and validity of the data sources to ensure the accuracy and reliability of the analytics in this report. The majority of the data collected came from electronic reports that were vetted and verified either at the time of collection, or through the approval that the data received at the time of its original processing (i.e. Corporate payroll records, Operating and Capital Budgets, paid invoices, etc.) ultimately reducing the likelihood of inaccuracies. We do want to highlight that a portion of the data required for this analysis came from the Volunteer biweekly payroll records called Duty Sheets. The Duty Sheets are hardcopy records that required a manual count to capture the actual response data necessary for this report. Through the data collection process, 20,858 Duty Sheets were vetted manually and therefore the potential for error in the counts associated with this specific data set increased. To ensure the accuracy and reliability of this data set, extra auditing was used to determine the frequency of errors and the ultimate accuracy rating. For every five (5) sets of counts, there was a duplicate count to audit the accuracy of the data input. Of the 4,172 audit counts, only 75 errors were produced in the sample set which VMA: April 2023 Clarington Emergency and Fire Services Page 5 of 32 Page182 PF Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services means the overall Duty Sheet data that was tabulated is within a 1.79% accuracy rating (or a 98.21 % confidence rating). This means the potential for error in the Duty Sheet data that was collected is less than 1.8% which is well within the acceptable standard. Current Situation Analysis To garner an accurate depiction of the current state of the Volunteer program, the following objectives have been fully assessed in detail and are demonstrated throughout the below sections of this report. This includes a full costing of the program, volunteer retention statistics and staffing numbers, the response rate actuals and the overall call volumes of the department. Overall Cost of the Volunteer Program When identifying and determining the total costs associated with the Volunteer Program, there are two (2) distinct elements that produce the overall carrying cost for the volunteer model in Clarington: the overall regular volunteer program maintenance and the annual new recruit class. In 2022, the overall volunteer program cost was $1,153,215.53 as a whole and is approximately $11,648.64 per person based on an average of 99 Volunteers in 2022. The annual maintenance cost of the Volunteer Model (excluding new recruits) was $1,022,171.58 total, costing approximately $10,417.76 per person. The New Recruit class in 2022 had a total of nine (9) new recruits which cost $14,560.40 per person just for the period of onboarding up to completion of the recruit class. The overall cost of the 2022 New Recruit class was $131,043.95. These numbers are illustrated in greater detail in the costing breakdown tables below. The cost factors collected and assessed to determine the above figures included a variety of elements such as wages paid, legislated employer paid payroll costs, training and courses inclusive of in-house administration, program development and preparation, direct and indirect labour costs associated with training and instruction, capital equipment replacements (excluding apparatus and stations), new equipment purchases, consumables, corporate expenses and departmental expenses. It is important to note that capital costs associated with apparatus and station maintenance were not included in this cost analysis. Costs associated with the purchase, maintenance and replacement of dedicated part-time apparatus and stations are not included in this initial report. For a more fulsome breakdown, it is recommended to take a greater look at and explore the department's tracking and quantification methods of Volunteer specific capital item usage, replacement, and maintenance to include in a future costing analysis. VMA: April 2023 Clarington Emergency and Fire Services Page 6 of 32 Page 183 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services The below costs have been assigned as an individual cost per Volunteer/ New Recruit as well as the overall cost per Volunteer Firefighter based on the 2022 average number of firefighters which was 99, inclusive of the nine (9) new recruits. Please note, in instances where overlap between the new recruit numbers overlapped costs captured in the regular volunteer program costs, the new recruit costs were isolated to the Recruit Class costs to prevent duplication of costing throughout this analysis. OVERALL VOLUNTEER PROGRAM COST IN 2022 Total Volunteer Program Cost $ 1,022,171.58 Total New Recruit Class Costs $ 131,043.95 TOTAL VOLUNTEER PROGRAM COSTS FOR 2022 $ 1,153,215.53 Average Vol Count in 2022 - 99 Average Cost Per Volunteer Firefighter $ 11,648.64 TOTAL VOLUNTEER PROGRAM COST IN 2022 Training Wages Paid $ 160,609.74 Base Wages Paid $ 666,855.97 Legislated Employer Paid Payroll Requirements $ 55,414.00 Equipment Replacements $ 32,523.50 Learning Materials $ 14,871.60 Training Courses $ 34,650.00 Duty Sheet Cost $ 106.39 Carbon Paper Cost $ 54.98 Training Program and Instruction Costs $ 41,111.30 Miscellaneous Consumables $ 1,235.70 Corporate Expenses $ 14,738.40 TOTAL VOLUNTEER PROGRAM COSTS FOR 2022 $ 1,022,171.58 Average Vol Count in 2022 - 99 Total Cost Per Volunteer $ 10,417.76 VMA: April 2023 Clarington Emergency and Fire Services Page 7 of 32 Page184 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services TOTAL NEW RECRUIT CLASS COST IN 2022 New Recruit Wages Paid $ 36,641.52 Equipment $ 33,853.22 Learning Materials $ 1,487.16 Consumables $ 1,642.32 Training Courses $ 3,573.00 Training Program and Instruction Costs $ 48,277.17 Live Fire Training & Full -Time Staffing Costs $ 5,569.56 TOTAL NEW RECRUIT CLASS COSTS FOR 2022 $ 131,043.95 9 New Recruits in the 2022 Recruit Class Total Cost Per New Recruit $ 14,560.44 Regular Volunteer Program Cost Breakdown The regular Volunteer Program costs excluding the new recruit class makes up approximately 88.63% of the total Volunteer Program in Clarington with a total maintenance cost of $1,022,171.58 or $10,417.76 per person. The below cost breakdown details the costs associated with the 2022 Volunteer Program excluding the New Recruit Class. The Volunteer Program had an average of 99 firefighters in 2022. Total Training Wages Station 1 - 2077 Hours $ 45,221.14 Station 2 - 2515.8 Hours $ 36,510.79 Station 3 - 1587 Hours $ 35,524.11 Station 4 - 1094.5 Hours $ 22,885.46 Station 5 - 970.5 Hours $ 20,468.24 2022 Officer Dev. - 180 Hours $ 2,611.80 TOTAL WAGES PAID $ 160,609.74 Average Vol Count in 2022 - 99 Total Training Wages Paid Per Person $ 1,622.32 VMA: April 2023 Clarington Emergency and Fire Services Page 8 of 32 Page185 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services Total Base Pay Total Wages Paid in 2022 $ 864,107.23 Minus Training Wages Paid $ 160,609.74 Minus New Recruit Training Wages $ 36,641.52 TOTAL BASE WAGES PAID $ 666,855.97 Average Vol Count in 2022 - 99 Total Base Pay Per Person $ 6,735.92 Legislated Employer Paid Payroll Requirements EHT $ 14,951.00 CPP $ 29,563.00 WSIB $ 10,900.00 TOTAL EMPLOYER PAID REQUIREMENTS $ 55,414.00 Average Vol Count in 2022 - 99 Total Employer Paid Requirements Per Person $ 559.74 Average Equipment Replacement Costs Bunker Gear (10 per year on avg) $ 19,729.80 Webbing (0 per year) $ - Gloves (13 per year on avg) $ 1,961.83 Boots 8 per year on avg) $ 1,447.60 Mic Keeper (0 per year) $ - T-Shirts 0 per ear $ - Uniform Shirt (0 per year) $ - Balaclava (15 per year on avg) $ 1,087.20 Helmet (12 per year on avg) $ 4,835.28 FIT Testing (Completed Every 2 years - 45 vol) $ 862.14 15 mins @ 1.5 OT x ($51.09 per hour) Pager (3 per year on avg) $ 2,584.65 PIT PASS/PAT Tags (replace 3 per year) $ 15.00 TOTAL EQUIPMENT COSTS $ 32,523.50 Average Vol Count in 2022 - 99 Total Equipment Costs Per Person $ 328.52 VMA: April 2023 Clarington Emergency and Fire Services Page 9 of 32 Page186 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services Learning Material Costs E-Library Access $ 16.99 Vector Solutions Access - LMS $ 125.00 Resilient Minds Textbook $ 23.25 TOTAL LEARNING MATERIAL COSTS $ 14,871.60 Average Vol Count in 2022 - 99 (minus 9 new recruits) Total Learning Materials Cost Per Person $ 165.24 Course Costs EMR per person $ 320.00 Diversity and Inclusion Training $ - OFC Courses 28 ppl used this in 2022 per person $ 65.00 TOTAL COURSES $ 34,650.00 Average Vol Count in 2022 - 99 (minus 9 new recruits) Total Course Costs Per Person $ 385.00 Duty Sheet Costs Duty Sheet Purchase 5000 sheets 5000 Cost of Purchase 50 pads x 100 sheets each $ 255.00 Cost per sheet $ 0.05 Average Duty Sheets Used (2086 per year) 2086 TOTAL DUTY SHEET COST $ 106.39 Average Vol Count in 2022 - 99 Total Duty Sheet Cost Per Person $ 1.07 VMA: April 2023 Clarington Emergency and Fire Services Page 10 of 32 Page187 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services Carbon Paper Costs Carbon Paper Purchase 200 sheets 200 Cost of Purchase 2 packs x 100 sheets each $ 49.98 Cost per sheet $ 0.25 Average Sheets Used 220 per ear 220 TOTAL CARBON PAPER COST $ 54.98 Average Vol Count in 2022 - 99 Total Carbon Paper Cost Per Person $ 0.56 Training Program and Instruction Costs Program Admin and Prep $ 24,705.25 300 hours 50150 @ CTO & TO rates inclusive of 30% Training Officers OT Paid $ 5,591.12 Training Officer Indirect Cost $ 3,310.97 CTO OT Paid $ 5,362.77 CTO Indirect Cost $ 777.02 STI Paid $ 1,363.61 TOTAL TRAINING PROGRAM LABOUR COST $ 41,111.30 Average Vol Count in 2022 - 90 Total Training Program Labour Cost Per Person $ 456.79 Miscellaneous Consumables Towing Expense for Auto Extrication $ 1,235.70 TOTAL CONSUMABLES $ 1,235.70 Average Vol Count in 2022 - 99 (minus 9 New Recruits) Total Learning Materials Cost Per Person $ 13.73 VMA: April 2023 Clarington Emergency and Fire Services Page 11 of 32 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services Corporate Expenses HR Payroll Software - Cost for Full Compliment $ 15,200.00 E1 Office License $100 per user @ 27 users $ 2,700.00 Additional IT Related User Account Fees $ - TOTAL CORPORATE COSTS $ 14,738.40 Average Vol Count in 2022 - 99 Total Corporate Costs Per Person $ 148.87 New Recruit Class Cost Breakdown The total cost of the New Recruit class in 2022 was $131,043.95 making up approximately 11.36% of the overall Volunteer Model cost in Clarington. Overall, it costs approximately $14,560.40 per new recruit. This number will fluctuate slightly based on the number of new recruits included in each annual recruit class, however, this figure is quite costly when we lose these new recruits shortly after finishing the recruit class due to a number of factors such as other departments hiring full-time. In recent years, we have lost several new recruits shortly after finishing the recruit class or within their first several months of responding due to external recruitment from other departments. The below cost breakdown details the costs associated with the 2022 New Recruit Class. The New Recruit Class had a total of 9 recruits representing Stations 1 through 4. Station 5 did not have any new recruits in 2022. Total New Recruit Wages Paid Station 1 - 658 Hours $ 13,897.10 Station 2 - 400 Hours $ 8,575.41 Station 3 - 312.5 Hours $ 6,736.27 Station 4 - 342.5 Hours $ 7,432.75 Station 5 - 0 Hours $ - TOTAL WAGES PAID $ 36,641.52 9 New Recruits in the 2022 Recruit Class Per New Recruit Wage $ 4,071.28 VMA: April 2023 Clarington Emergency and Fire Services Page 12 of 32 Page189 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services Equipment Costs Bunker Gear $ 1,972.98 Webbing $ 10.00 Gloves $ 150.91 Boots $ 180.95 Mic Keeper $ 37.50 T-Shirts $ 11.00 Uniform Shirt $ 37.00 Balaclava $ 72.48 Helmet $ 402.94 FIT Testing - In house cost $ 19.16 15 mins @ 1.5 OT x $51.09 per hour Pager $ 861.55 PIT PASS/PAT Tags $ 5.00 TOTAL EQUIPMENT COSTS $ 33,853.22 9 New Recruits in the 2022 Recruit Class Per New Recruit Wage $ 3,761.47 Learning Material Costs E-Library Access $ 16.99 Vector Solutions Access - LMS $ 125.00 Resilient Minds Textbook $ 23.25 TOTAL LEARNING MATERIALS $ 1,487.16 9 New Recruits in the 2022 Recruit Class Per New Recruit Learning Materials $ 165.24 VMA: April 2023 Clarington Emergency and Fire Services Page 13 of 32 Page190 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services Consumable Costs Drywall $ 153.00 Rebar $ - Flat Bar $ - Bolts for fortress prop $ 18.00 Metal doors for crush prop $ - Sheets of OSB $ 155.25 Wood for Force Entry $ 72.00 Wire Entanglement $ 18.00 Extinguishers $ 315.00 Vehicles for Auto -Ex $ 787.50 Towing Expense $ 123.57 TOTAL CONSUMABLES $ 1,642.32 9 New Recruits in the 2022 Recruit Class Per New Recruit Consumables Cost $ 182.48 Course Costs EMR $ 2,880.00 Diversity and Inclusion Training $ 108.00 OFC Courses $ 585.00 TOTAL COURSES $ 3,573.00 9 New Recruits in the 2022 Recruit Class Per New Recruit Course Cost $ 397.00 VMA: April 2023 Clarington Emergency and Fire Services Page 14 of 32 Page 191 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services Training Program and Instruction Costs Program Admin and Prep $ 6,269.29 80 hours @ TO rate inclusive of 30% Training Officers OT Paid $ 10,112.24 Training Officer Indirect Cost $ 13,596.51 CTO OT Paid $ 10,808.55 CTO Indirect Cost $ 5,309.64 STI Paid $ 2,180.94 TOTAL TRAINING COST $ 48,277.17 9 New Recruits in the 2022 Recruit Class Total Training Program Cost per person $ 5,364.13 Live Fire Training & Full -Time Staffing Costs Full -Time Captain @ $57.41 $ 2,066.76 Full -Time 1 st Class FF x 2 @ $48.65 $ 3,502.80 3 full days OT from 8: 00 a.m. to 4: 00 p.m. TOTAL LIVE FIRE TRAINING COST $ 5,569.56 9 New Recruits in the 2022 Recruit Class Per New Recruit Live Fire Cost $ 618.84 Retention The overall retention of our Volunteer complement has been expressed in several ways throughout this report. Retention was calculated through an annual lens in addition to a five (5) and ten (10) year view of our staffing trends. The Volunteer complement has gone from a ten (10) year retention period of 86% to a five (5) year retention rate of 82%. As our retention declines, our attrition rates with our Volunteers have increased from 15% (10 year) to 19% (5 year). Of our current complement (2022), only 35% is made up of long-term Volunteers who have been with us for at least ten (10) years or more. Only 46% of our current complement has been with us for five (5) years or more, which is only 12% more than our ten (10) years of service or more staff. These numbers are very important because VMA: April 2023 Clarington Emergency and Fire Services Page 15 of 32 Page192 PF Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services they represent our most experienced and skilled Volunteers that will gradually exit our complement over the next few years. When you consider our five (5) year average end of year headcount of 97 people (inclusive of new recruits), we are generally running at 77.6% of our full volunteer complement of 125, meaning we are consistently requiring higher numbers of new recruits (which translates to increased costs of the new recruit program) as we are losing more and more experienced Volunteers through attrition at the same time. This will ultimately increase the overall costs of the volunteer program, with limited opportunity for long serving volunteers to share their knowledge and experience to our newer staff before they exit the complement. In addition to this, we have about a 5% attrition rate for our new recruits. This means that during their first year with us, we lose 5% of our new recruits before they even reach one year of service with the department. The below graph demonstrates a ten (10) year view of the Volunteer program and the significant decline of our volunteer retention. This graph is inclusive of our five (5) year (82%) and ten (10) year (86%) retention trendlines and how they interact with the annual retention rates. Last year we had our lowest annual retention rate of 79%. 100% 95% 9 90% 8E 85% 82 80% 75% Volunteer Retention: 10 Year View 95% 79% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Annual Retention Rate 10 Year Retention Rate (86%) 5 Year Retention Rate (82%) • • • • • Linear (Annual Retention Rate) VMA: April 2023 Clarington Emergency and Fire Services Page 16 of 32 Page 193 PF Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services In addition to the above graph, the below demonstrates the attrition rate trends through a ten (10) year period. This graph is inclusive of our new recruit attrition rate (5%) and our annual attrition rates of our regular complement excluding new recruits. Both attrition rates for new recruits and the regular complement are displaying an increasing trend with our highest attrition rate occurring last year with 22%. 25% 20% 19% Volunteer Attrition Rates: 10 Year View 22% 20% 19% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Annual Attrition Rate New Recruit Attrition Rate 10 Year Attrition Rate 5 Year Attrition Rate • • • • • Linear (Annual Attrition Rate) Linear (New Recruit Attrition Rate) VMA: April 2023 Clarington Emergency and Fire Services Page 17 of 32 Page 194 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services The below data table represents the overall retention statistics that were calculated. For each data element, a five (5) year and ten (10) year calculation was produced to help define and demonstrate the trends challenging our complement. As displayed below, there is a steady general reduction to the overall volunteer complement that is occurring through most data segments related to retention and staffing counts. Overall Retention Statistics Data Element: 5 Year Average 10 Year Average Annual Retention Rate 82% 86% Attrition Rate 19% 15% New Recruit Attrition Rate 5% 5% Average Annual Headcount (excluding new recruits) 93 101 Average Terminations per year 19 16 Percentage of New Recruits Based on Complement 15% 13% Average Headcount in New Recruit Class 15 14 Average New Recruit Terminations 1 1 Average End of Year Staffing Totals inclusive of New Recruits 98 106 VMA: April 2023 Clarington Emergency and Fire Services Page 18 of 32 Page195 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services voiunzeer retention Data The below table demonstrates the various annual retention data over a ten (10) year period. Of note, 2022 was the most challenging year for our complement with a continuous decline in our retention rate, new recruit attrition rate and the lowest end of year staffing total while also showing the highest attrition rates and total number of terminations. Start of End of Year End of Year New Year Staffing Annual Attrition Recruit Headcount Headcount Total Number Total Year Retention Rate Attrition (excluding (excluding of (inclusive of Rate Rate new new Terminations new recruits) recruits) recruits) 2022 79% 22% 11% 103 81 23 89 2021 85% 16% 6% 101 86 16 103 2020 81% 20% 6% 99 80 20 96 2019 82% 18% 0% 95 78 17 96 2018 81% 19% 0% 113 92 21 104 2017 91% 10% 8% 112 102 11 113 2016 89% 13% 15% 114 101 15 112 2015 95% 5% 0% 119 113 6 114 2014 82% 18% 0% 115 94 21 119 2013 93% 7% 0% ill 103 8 115 VMA: April 2023 Clarington Emergency and Fire Services Page 19 of 32 Page 196 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services New Recruit Retention Data The below table demonstrates the retention data specific to new recruits throughout a ten (10) year period. As our attrition rates increase, the reliance on and pressure to recruit more Volunteers increases which has been extremely challenging in the current environment, especially when attracting and retaining staff has become increasingly difficult due to Volunteer labour shortages in the province. Last year (2022) we were only able to attract nine (9) new volunteers when our 2021 end of year headcount was only 103, putting us at 89.6% of our full complement at the beginning of 2022. Of our nine (9) new recruits, we ended up losing one of these recruits within their first year as a Volunteer because they were hired on full-time by another department. In this instance, this new recruit didn't even get the opportunity to respond to any calls as a Volunteer before their resignation, resulting in a zero return on investment for this recruit. This example is a very real ongoing challenge for our Volunteer model. Percentage of End of Year New Recruit New Recruits New Recruit New Recruit Staffing Total Year Attrition Rate Against Annual Numbers Terminations Inclusive of Staffing Complement New Recruits 2022 11% 9% 9 1 89 2021 6% 18% 18 1 103 2020 6% 17% 17 1 96 2019 0% 19% 18 0 96 2018 0% 11% 12 0 104 2017 8% 11% 12 1 113 2016 15% 11% 13 2 112 2015 0% 1% 1 0 114 2014 0% 22% 25 0 119 2013 0% 11% 12 0 115 Response Rate Actuals The response rate actuals calculated and displayed below are based on the response instances where Volunteers attended. This data section is not inclusive of calls that were not attended by Volunteers. This information is captured in the overall response statistics in the next section of this report. The total number of responses is based on the Duty Sheets submitted by each station for payroll purposes and the same call VMA: April 2023 Clarington Emergency and Fire Services Page 20 of 32 Page197 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services numbers requiring responses from more than one station are not separated from the totals. The justification for including this data set in this report is because it identifies the number of actual responses per station over a five (5) year period, while providing the average number of Volunteers responding per station when they attended through either a Duty Response or Standby instance. Therefore, the response statistics in this section are separated based on Duty Responses and Standby Responses. As discussed under the DCP section of this report, the CriSys dispatch system does not house the data containing what or how many volunteers responded to each call. Therefore, the only way to accurately capture this data was to utilize the Duty Sheets to determine response actuals over a five (5) year period. Five Year Response Instances and Average Number of Volunteers Responding The below graph demonstrates the combined total responses attended for all stations over a five (5) year period. This data shows a declining trend with our Volunteer attendance of both response types. This could be because the call volumes are also declining as well (as identified in the overall response volumes section of this report), however the slope of the trendlines portrayed in this graph and the average number of volunteers responding in the next graph, clearly attribute that this downward trend is not completely due to an overall decline in CEFS call volumes. 5 Year Overall Duty Response and Standby Instances Attended 1700 1651 1600 1487 1500 •- 1400 1300 1200 1104 1117 1100 ................ 1000 900 800 700 2018 2019 t Duty Response 1104 1117 —*--Standby Response 1487 1651 --*—Duty Response \1222 — • - 1037 0•••...... .. 877 2020 2021 2022 950 877 1037 1222 1149 1436 t Standby Response • • • • Linear (Duty Response) • • • • Linear (Standby Response) VMA: April 2023 Clarington Emergency and Fire Services Page198 Page 21 of 32 ..I Clarington Emergency and Fire Services The five (5) year average number of Volunteers responding per call depicted below identifies that we are also seeing a decline in the total number of volunteers responding to each instance. In 2022, we had an average of 3.8 people attending Duty Response instances while we had and average of 4.0 Volunteers attending Standby calls. An interesting point of data in the below graph is the peak in 2020 for Duty Responses. In 2020 we changed our Tiered response type to reduce the number of medical calls our suppression staff were required to attend to reduce exposure and potential transmission of the COVID-19 virus. We had quite an increase in the average call responses for Volunteers in this same year which can be attributed to the fact that most employers required their staff to work from home which likely opened the availability of our Volunteers to respond to more calls through the day even though we had less call volumes overall in the department. 5 Year Average Number of Volunteers Responding Per Call (All Stations) 4.8 4.7 4.6 4.4 4.2 4 3.8 3.6 3.4 3.2 3 4.5 3.8 3.8 2018 2019 2020 2021 2022 tDuty Response 4.2 3.8 4.6 3.9 3.8 —*—Standby Response 4.4 4.5 4.7 4.7 4 --*--Duty Response Standby Response • • • • Linear (Duty Response) • • • • Linear (Standby Response) VMA: April 2023 Clarington Emergency and Fire Services Page 22 of 32 Page199 Clarington Emergency and Fire Services rive rear Juty Responses and Standby Statistics Capturing the individual performance of each station was important to show the trends exhibited over a five (5) year period. Stations 1, 2 and 4 are full-time and located closer to the lakeshore and typically experience more call instances. As a result, these three stations generally experience a higher frequency of standby calls. Being solely Volunteer, Stations 3 and 5 are located towards the northern part of the Municipality in Orono and Enniskillen respectively, and typically experience fewer call volumes than the southern stations. 400 350 300 250 200 150 100 50 0 + 2022 t 2021 + 2020 —db---2019 t 2018 5 Year (2022-2018) Duty Response Instances Per Station Station 1 Station 2 Station 3 Station 4 Station 5 326 245 219 125 122 285 164 216 96 116 282 198 203 128 139 373 216 263 109 156 351 216 252 137 148 t 2022 --e-2021 --o-2020 2019 t 2018 VMA: April 2023 Clarington Emergency and Fire Services Page 23 of 32 Page 200 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services The below chart represents the Standby Responses for each station over a five (5) year period. The full-time stations backed up by Volunteers generally experience more Standby instances than Stations 3 and 5. 700 600 500 400 300 200 100 0 --0-2022 2021 2020 2019 2018 5 Year (2022-2018) Standby Response Instances Per Station Station 1 Station 2 Station 3 Station 4 Station 5 514 351 198 258 155 394 233 216 197 109 386 239 205 241 151 611 357 249 270 164 506 359 243 243 136 t 2022 r 2021 2020 2019 t 2018 Five Year Average Number Volunteers Responding Per Station Again, the individual station performance is demonstrated below with the average number of volunteers responding through Duty Responses and Standby instances that occurred over a five (5) year period. Showing the individual performance numbers of each hall helps to clearly define the trends affecting each station. VMA: April 2023 Clarington Emergency and Fire Services Page 24 of 32 Page 201 PF Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services Station 1: Station 1 has seen a decrease in the number of Volunteers responding in both Duty Responses and Standby instances over a five (5) year period. In general, Standby instances at Station 1 have more Volunteers attending on average in comparison to Duty Responses. Station 1: 5 Year Average Number of Volunteers Responding Per Call s 6.8 7 6.1 6 5.7 5.6 5.4 5 4 4.7... 4.5.......... 4 4 3 3.5 2 2018 2019 2020 2021 2022 -*-Duty Response 4.7 3.5 4.5 4 4 Standby Response 6.8 6.1 5.7 5.6 5.4 f Duty Response Standby Response • • • • • • Linear (Duty Response) • • • • • • Linear (Standby Response) Station 2: Station 2 has seen an increase in the number of Volunteers attending Standby instances while also exhibiting a slightly downward trending response average for Duty Response instances. Station 2: 5 Year Average Number of Volunteers Responding Per Call 6 5.6 5.5 5.2 5.1 5 4. 4.5 4. . . 4 4:3........ 3.5 3.8 3.7 3.9 3 2.5 2 2018 2019 2020 2021 2022 +Duty Response 4 3.8 4.3 3.7 3.9 -*--Standby Response 4 4.6 5.2 5.6 5.1 t Duty Response ! Standby Response • • • • • • Linear (Duty Response) • • • • • • Linear (Standby Response) VMA: April 2023 Clarington Emergency and Fire Services Page 25 of 32 Page 202 Clarington Emergency and Fire Services Overall, Station 3 is seeing a downward facing trend in both Standby and Duty Response average attendance. Station 3: 5 Year Average Number of Volunteers Responding Per Call 5.5 5.3 5.3 5 5 .. 4.7. .............. ........:..:4:.g::............. 4.5 4.5 4.6 4.7 4.4 4 3 3.5 .8 3 2018 2019 2020 2021 2022 +Duty Response 5 4.7 4.9 4.7 4.5 Standby Response 4.4 4.6 5.3 5.3 3.8 f Duty Response Standby Response • • • • • • Linear (Duty Response) • • • • • • Linear (Standby Response) Station 4: Station 4 is consistent with their downward trending response attendance with a slight peak in 2020 and then a resumed declining trend occurring in 2021 and continuing in 2022 with an average of three (3) people attending both Standby and Duty Responses. Station 4: 5 Year Average Number of Volunteers Responding Per Call 5 4.8 4.5 4 3.J'...............1 9, .................. 3.9 3.5 3.7' ......... 3.3 3 3.2 3.1 3.1 2.5 2 2018 2019 2020 2021 2022 +Duty Response 3.7 3.2 3.6 3.1 3.1 +Standby Response 3.9 3.9 4.8 3.9 3.3 Duty Response Standby Response • • • • • • Linear (Duty Response) • • • • • • Linear (Standby Response) VMA: April 2023 Clarington Emergency and Fire Services Page 26 of 32 Page 203 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services StMinn 5- Lastly, Station 5 has a downward trending call attendance for Standby instances and a slightly increasing attendance volume for Duty Responses. Station 5: 5 Year Average Number of Volunteers Responding Per Call 5 4.5 4.5 4.2 3.8 . 3.9 q 3.7 3.5 3.5 3........................... 3 3... ...... 2.5 2 2.3 2018 2019 2020 2021 2022 tDuty Response 3.8 3.9 4.5 4.2 3.7 Standby Response 3 3.3 3.5 3 2.3 t Duty Response Standby Response • • • • • • Linear (Duty Response) Linear (Standby Response) Overall Response Statistics The Overall Response statistics collected and presented in this section of the report were pulled from our CriSys dispatching system. Because we have used this system for several years, we were able pull 13 years' worth of long-term call data that is extremely beneficial as it relates to the Volunteer Program analysis. In 2022, 69.6% of CEFS's total call volume required Volunteer response. The total calls attended by Volunteers (arrived on scene) has decreased to 47.6% from 2013 to 2022. During this same period, the total calls where Volunteers responded saw a reduction to 52.6%. These numbers are significantly trending downward when you look at the ten (10) year period as a whole. With the 2022 cost of the Volunteer program of $1,153,215.53, the total cost per call where Volunteers responded was $904.48 per call. This is inclusive of responses on scene, trucks being cancelled and cleared enroute and standby instances. You will also note in the below graph and data table that the call volumes for 2020, 2021 and 2022 appear to be quite lower than previous years. This is because of the COVID- 19 Pandemic which caused our department to adjust our Tiered response so that Firefighters were not attending the normal high volume of medical calls to reduce VMA: April 2023 Clarington Emergency and Fire Services Page 27 of 32 Page 204 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services exposure and limit the spread of COVID-19. In the first quarter of 2023 we have adjusted our Tiered Response back to its original level and therefore we expect to see a return in our increased call volumes going forward. Total CEFS Calls Requiring Volunteer Response: 2010 to 2022 2847 584 2423 2300 1 / '*- 21 1894 1843 • •1$38 ' ' 1800 i 7101 155 154� .1500 • •. • • 1744 1574 1554 1540 1652 ••. 1596•. 1605 1764 127 .• •• • • • • 1275125 1254 1245 2161118121300 1181110 150 1030 891865 899 872 4 833 823 M7 800 — — 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Number of Calls Requiring Volunteer Response Total Calls where Volunteers Responded (inclusive of trucks being cleared/cancelled) Total Calls Attended (made it to location) • • • • Linear (Number of Calls Requiring Volunteer Response) • • • • Linear (Total Calls where Volunteers Responded (inclusive of trucks being cleared/cancelled)) - - - - - Linear (Total Calls Attended (made it to location)) As exhibited in the below table for total call volumes for CEFS, historical data was collected over a 13 year period. As our dispatch system does not report the number of Volunteers attending each call, the average number of Volunteers attending was calculated using the five (5) year Duty Sheet data from the Response Actuals section of this report. In addition to this, the Re -paged data was pulled from CriSys for the most recent four (4) year period. It is important to note that the re -paged data represents each instance that volunteers were re -paged at least once because of insufficient volunteer apparatus response to a call. VMA: April 2023 Clarington Emergency and Fire Services Page 28 of 32 Page 205 Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services The re -paged data was quite complex and difficult to pull from CriSys and therefore only the most recent four (4) years' worth of data was able to be obtained for this data segment. Total CEFS Call Volumes Year Total CEFS Calls Number of Calls Requiring Volunteer Response Total Calls where Volunteers Responded (inclusive of trucks cleared/cancelled enroute) Total Calls Attended (arrival on location) Average Number of Volunteers Attending per call Number of Re -paged Instances 2022 2535 1764 1275 874 3.8 181 2021 2233 1596 1245 891 3.9 121 2020 2665 1605 1254 872 4.6 154 2019 4317 1744 1210 867 3.8 182 2018 3981 1652 1185 823 4.2 2017 3726 1540 1150 833 2016 3789 1554 1216 899 2015 3727 1574 1181 865 2014 3613 2584 2189 1701 2013 3582 2847 2423 1838 2012 3447 1894 1557 1278 2011 3530 1843 1500 1192 2010 3369 1546 1255 1030 Threats and Mitigation Strategies for the Volunteer Program If the Volunteer Suppression Model is going to be maintained successfully within CEFS there are several threats and potential mitigation strategies that should be considered as part of this analysis. The Volunteer Program in CEFS is not the same as it used to be in the department as increasing socioeconomical changes are affecting our program. We have experienced challenges in the last few years related to daytime response levels for certain halls, particularly Station 4. This is because most of our complement have primary employment that they must be in attendance for throughout the daytime and therefore cannot leave to respond to calls during this time. Historically, we have never had a significant issue with this as a department because a large portion of our complement was made up of shift workers such as GM employees, who had more flexibility with their VMA: April 2023 Clarington Emergency and Fire Services Page 29 of 32 Page 206 PF Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services responses throughout the day based on their shift schedule. Employing a large portion of shift workers is not the reality of our complement anymore and therefore we are experiencing challenges with our daytime response levels. Another threat apparent to the Volunteer Program is the updated legislation regarding minimum certification standards. This legislation requires all departments to have suppression staff certified to the Firefighter Level I and II levels by 2026. Minimum certification is quite costly for a firefighter to complete. At the time of this report, the department currently has 23 volunteers who will need to be certified under these new standards. The department is currently looking at costing options to achieve and maintain this legislated requirement, however this still presents quite a barrier to employment as a Volunteer Firefighter based on the overall cost. Most people who invest in completing the certification requirements are those who are looking to become full-time fighters which does not help our retention issues. Regardless of the department's decision on how to approach minimum certification in the future, this is going to be an ongoing cost for CEFS. However, there is an opportunity to leverage this new requirement for Volunteer Retention and Cost mitigation. As a cost recovery and retention strategy, CEFS could utilize a training investment agreement as a clause in our Volunteer employment contracts. This training investment clause would require new recruits to commit to being a Volunteer in Clarington for defined period of time (i.e. three (3) years), while also committing to maintain a satisfactory response level, as determined by the department. If a Volunteer resigns from their position or does not meet the required call attendance commitment, they would be required to repay the department a pro -rated agreed -upon amount as identified in their employment contract. This strategy would reduce the cost barrier of new recruits trying to become Volunteers, while simultaneously increasing our Volunteer response statistics and our overall cost recovery for training investment in our Volunteer complement. As outlined in the Retention section of this report, only 35% of our current complement have staff that have been with us for ten (10) years or more and only an additional 12% have been with us for five (5) years or more. These are our most experienced Volunteer Firefighters and it is reasonable to estimate that we will lose these people within the next few years. We need these people to mentor and develop or newer staff, especially as our new recruit number grow and our retention rates diminish. The amount of new recruits we need to hire has grown exponentially. As we continue to see increased attrition rates, the cost of hiring and developing new recruits grows. Combine this with the termination rates of new recruits that CEFS is experiencing, the cost of the new recruit program is only going to grow and continue to be more costly to maintain. VMA: April 2023 Clarington Emergency and Fire Services Page 30 of 32 Page 207 PF Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services In addition to this, CEFS has observed a reduction in our staff retention rates both over a ten (10) year and five (5) year period as our attrition rates continue to climb. A significant portion of our attrition is due to Volunteers being recruited for full-time positions in other Fire Departments. As external department recruitment is completely out of our control, the only option CEFS has to remedy this threat is to develop creative recruitment strategies to attract and retain individuals who are not interested in becoming career firefighters. This could be quite challenging when considering our applicant pool is limited to the geographic boundaries of the Municipality due to response timeline requirements. Another piece to consider when looking at CEFS's retention and attraction strategy is the compensation model for our Volunteers. Clarington's Volunteer compensation model is based on a point system for calls attended, training completed, Officer administrative duties, etc. It would be extremely beneficial to do a full review of this compensation model to determine if there are other options that could increase Volunteer satisfaction and appropriate compensation levels based on surrounding comparators. Conclusion CEFS is currently operating within a rapidly growing environment that has produced several pressure points for the department including significant challenges for the Volunteer Suppression Model. To determine the true efficacy of the Volunteer Program, several factors were assessed through a data analytics perspective throughout this report. The Volunteer model in Clarington has seen a significant decline in its overall operation due to a variety of factors. The Volunteer program is currently facing a variety of challenges that are continuing to make attracting, recruiting and retaining Volunteers more difficult resulting in a reduced complement capacity and increased carrying costs to the program. It is recommended that further data monitoring and measures for the Volunteer Program continue in order to continuously assess the program efficacy. In addition to this, further costing breakdowns relative to the Volunteer complement that expand into the asset management areas of the department should be reviewed and quantified as part of the overall program costs. Another factor that this analysis did not touch on was an evaluation on the engagement and job satisfaction levels of the Volunteer complement. It would be beneficial to solicit feedback from Volunteers to gauge their level of engagement with their positions and how they view the culture of the department. VMA: April 2023 Clarington Emergency and Fire Services Page 31 of 32 Page 208 A Volunteer Suppression Model Analysis: Clarington Emergency and Fire Services In addition to this, a compensation model review would be extremely beneficial in order to determine comparator pay levels and pay systems that may improve the quality of Volunteer retention and responses. Moving forward, with our diminishing retention rates, the new minimum certification standards, challenges with maintaining our daytime response levels due to socioeconomic factors, and Clarington's rapid growth, there are numerous threats pressuring the Volunteer Program that will need to be fully considered and addressed to maintain a successful Volunteer Suppression Model in Clarington. VMA: April 2023 Clarington Emergency and Fire Services Page 32 of 32 Page 209 Appendix B: Clarington Fire Master Plan - 2021 Pomax [pages 28-59] Municipality of Clarington A Fire Master Plan for Clarington Emergency and Fire Services vg�� POMAX C O N S U L T I N G November 2021 Page 210 Clarington Emergency and Fire Services Fire Master Plan Response Percentiles by Station 2020 0:12:58 0:11:31 0:10:05 0:08:38 0:07:12 0:05:46 0:04:19 0:02:53 0:01:26 0:00:00 0:11:31 0:10:05 0:08:38 0:07:12 0:05:46 0:04:19 0:02:53 0:01:26 0:00:00 90th percentile by station All stations Station 1 ,I Station 2 Station 3 Station 4 ■ Call time ■ Turnout ■ Response 75th percentile by station o„ oil oil oil ME All stations Station 1 Station 2 Station 3 Station 4 ■ Call time ■ Turnout ■ Response POMAX III Station 5 oil Station 5 Page 211 Page 128 Clarington Emergency and Fire Services Fire Master Plan Station 1 Historic Information Station 1 : Number of calls by year 2500 2000 1500 1000 500 0 2015 2016 2017 2018 2019 2020 Station 1 : Number of calls by month 250 200 150 100 50 0 op, Q& Qet ■ Station 1 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 212 Page 129 Clarington Emergency and Fire Services Fire Master Plan 500 450 400 350 300 250 200 150 100 50 0 140 120 100 11 Sunday Station 1 : Number of calls by day Monday Tuesday Wednesday Thursday Friday Station 1 : Number of calls by hour Saturday 80 60 40 20 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 '2018 ■ 2019 ■ 2020 POMAX Page 213 Page 130 Clarington Emergency and Fire Services Fire Master Plan Station 1 : Number of accident calls by year 200 150 100 50 0 M Accident:Pedestrian Struck 50 45 40 35 30 25 20 15 10 11�t1■ et°tea\ y�t`,a\ 0 5• Pat�S Path .o�����d 5 Accident: Rail: Derailment Accident:Rail:Pedestrian/ Spill/No Spill Motor Vehicle Accident:Vehicle Station 1 : Number of alarm calls by year III�I, I II 1■ ■■ _■� ■I III _�_ __ a� rJ\� ye ��1 \ye e� °°N\�' �\�t \boo �a� �e� �r at •\a�. �,��a \° a�• ate• \QQ e�� \ae ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 214 Page 131 Clarington Emergency and Fire Services Fire Master Plan Station 1 : Number of non structural fires by year 100 80 60 40 20 --■■ _■ ��.1�� - ■■■_■n 111111 \o\o� \o\o�`o�+�\oy\o� +�\O\o\oy`o� F`te\ F`te\ F`te\ F`te\ F`te\ F`te\ F`te\ F`te\ tea �e Station 1 : Number of medical calls by year 1400 1200 1000 800 600 400 200 0 — Medical:Assist 1 Medical: Emergency Medical:PAD Alarm Page 215 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 132 Clarington Emergency and Fire Services Fire Master Plan Station 1 : Number of public hazard calls by year 120 100 80 60 40 20 0 ■■-mo■ got' ta' Cre Leo atia t Q ti Q�•p\` �a~a tiara Qo`0 Qo�Oc. Q�,°Oc 8 7 6 5 4 3 2 '1 0 of e° Je. h� �e --MEMO I'EM --§-M- - ■���■� lip A ata ��r Bret ��te ati ata ao ta. Kati tiat atia QR Q Station 1 : Number of rescue calls by year e xte� Je. Ie IN 1 , 1 `tee. ode �e5 5� Qe ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 216 Page 133 Clarington Emergency and Fire Services Fire Master Plan 60 50 40 30 20 10 0 911 Unknown Station 1 : Number of other calls by year Automobile Lockout Incident Type Other Other Response:M utual Response:Assistance to Aid other agencies/Public Service Station 1 : Number of structure fire calls by year 35 30 25 20 15 10 ■ 5 I 11.d 1 III 1I 111 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 217 Page 134 Clarington Emergency and Fire Services Fire Master Plan Station 2 Historic Information 900 800 700 600 500 400 300 200 100 0 Station 2 : Number of calls by year 2015 2016 2017 2018 2019 2020 Station 2 : Number of calls by month 90 80 70 60 50 40 30 20 10 0 F POMAX ■ 2015 ■ 2016 ■ 2017 2018 ■ 2019 ■ 2020 Page 218 Page 135 Clarington Emergency and Fire Services Fire Master Plan Station 2 : Number of calls by day 140 120 100 ■ 2015 ■ 2016 80 ■ 2017 60 ■ 2018 40 ■ 2019 ■ 2020 20 0 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Station 2 : Number of calls by hour 70 60 02017 02019 20 02020 10 0 ..... ...... ..... ..... 11111 gill 111.1 Page 219 POMAX Page 136 Clarington Emergency and Fire Services Fire Master Plan Station 2 : Number of accident calls by year 140 120 100 80 60 40 20 0 — �a Accident Accident: Pedestrian Struck Accident:Rail:Pedestrian/ Accident:Vehicle Motor Vehicle Station 2 : Number of alarm calls by year 30 25 20 15 10 5 III I 1■■ I1 0 5 ■ M ■ = ■ M P� POMAX ■ 2015 ■ 2016 ■ 2017 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 Page 220 Page 137 Clarington Emergency and Fire Services Fire Master Plan Station 2 : Number of non structural fires by year 25 20 15 10 0 \Oy`�C� 450 400 350 300 250 200 150 100 50 0 \Oy\OC\ �c+Q\14 9 NO11\Ot\ tea �e Station 2 : Number of medical calls by year Medical:Assist Medical: Emergency Page 221 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 138 Clarington Emergency and Fire Services Fire Master Plan 40 35 30 25 20 15 10 5 0 ie 0 J�Or QJ Q 2.5 2 1.5 1 0.5 0 of e� Je. h� �e Station 2 : Number of public hazard calls by year 111 11 111111 I■1111 Oat\\ #o: ta' got' Gre �eL atia c Q tiara a�ati ti o p � � a�Jta `Q�o gee oo� �acxc'Q�Office ire e5 ati r`�ati aaca• aa0 eta. QJ Q Station 2 : Number of rescue calls by year GJe. oQe fey Q,e ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 222 Page 139 Clarington Emergency and Fire Services Fire Master Plan Station 2 : Number of other calls by year 30 25 20 15 10 5 0 1 911 Unknown Automobile Lockout Incident Type Other Response:Assistance to other agencies/Public Service Station 2 : Number of structural fire calls by year 25 20 15 10 5 0 �■ II ■ ■ ■ ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 n� ■ 2020 POMAX Page 223 Page 140 Clarington Emergency and Fire Services Fire Master Plan Station 3 Historic Information 250 200 150 100 50 0 2015 Station 3 : Number of calls by year 2016 2017 2018 2019 2020 Station 3 : Number of calls by month 30 25 20 15 10 5 0 e�t�atJ Q POMAX ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 Page 224 Page 141 Clarington Emergency and Fire Services Fire Master Plan Station 3 : Number of calls by day 40 35 30 25 20 15 10 5 0 — Sunday Monday Tuesday Wednesday Thursday Friday Station 3 : Number of calls by hour 18 16 14 12 1��ul�6�l�����n�,l� �CIIJ�II�IPage 225 1111 Saturday ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 142 Clarington Emergency and Fire Services Fire Master Plan 10 9 8 7 6 5 4 3 2 1 0 50 45 40 35 30 25 20 15 10 5 0 Station 3 : Number of alarm calls by year • ye o� ae 5` e gat P Station 3 : Number of accident calls by year AccidentNehicle 11 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 226 Page 143 Clarington Emergency and Fire Services Fire Master Plan Station 3 : Number of non structural fire calls by year 12 10 8 6 ■ 2015 4 ■ 2016 ■ 2017 0 02018 ■ 2019 ■ 2020 +Q\o�+�\oQ\oy���+Q\oy.�� F`te\ F`te\ F`te\ F`te\ tea �e 120 100 80 60 40 20 0 Station 3 : Number of medical calls by year Medical:Assist Medical: Emergency Page 227 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 144 Clarington Emergency and Fire Services Fire Master Plan Station 3 : Number of public hazard calls by year 8 7 6 5 4 3 1 I 1 1 1I 1 I' I11 1 1 I' 1 0 Lr e,�e Kati ago C� .`c�a Oo �� ta' Q Kati ataa° ia' O tia ° ati at tia Q Station 3 : Number of other calls by year 14 12 10 8 6 4 2 0 911 Unknown Other Response:Assistance to other agencies/Public Service ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 228 Page 145 Clarington Emergency and Fire Services Fire Master Plan 9 8 7 6 5 4 3 2 Station 3 : Number of structural fire calls by year POMAX ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 Page 229 Page 146 Clarington Emergency and Fire Services Fire Master Plan Station 4 Historic Information 1200 1000 800 600 400 200 0 2015 120 100 80 60 40 20 0 POMAX Station 4 : Number of calls by year 2016 2017 2018 2019 2020 Station 4: Number of calls by month ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 �J y`' et et 2t et � O Page 230 Page 147 Clarington Emergency and Fire Services Fire Master Plan Station 4 : Number of calls by day 200 180 160 140 120 100 80 60 40 20 0 Sunday Monday Tuesday Wednesday Thursday Station 4 : Number of calls by hour 80 70 60 50 40 30 � �I 20 II 10 �IkIIIiIIIV���IIiI��I�III I II 1111 Friday Saturday ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 231 Page 148 Clarington Emergency and Fire Services Fire Master Plan Station 4 : Number of accident calls by year 120 100 ■ 2015 80 ■ 2016 60 ■ 2017 ■ 2018 40 ■ 2019 ■ 2020 20 0 Accident: Pedestrian Struck 40 35 30 25 20 15 10 5 I �■ 0 5• P moo`' Accident:Vehicle Station 4 : Number of alarm calls by year -- —■— ■ r c o0 i 1 ■ 2015 1 '' ■ 2016 ■ 2017 ■ 2018 �e� �o ■ 2019 a ; ■ 2020 aet`� 5` e a POMAX Page 232 Page 149 Clarington Emergency and Fire Services Fire Master Plan Station 4 : Number of non structural fire calls by year 50 45 40 35 30 25 20 15 10 5 \oy\o� \oy`o� \oy\o \o� \oy\o \oy`o� F`te F`te F`te F`te F`te F`te F`te F`te tea �e Station 4 : Number of medical calls by year 700 600 500 400 300 200 100 0 � Medical:Assist Medical: Emergency Page 233 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 150 Clarington Emergency and Fire Services Fire Master Plan Station 4 : Number of public hazard calls by year 60 50 40 30 20 10 .��■.■ ■■�_■_ 11 II ■■■ ■- -- - ■�■1�■ 0 Cc h o , a �ot� taL ASS`°aka 0 p°� o`er `Q\o eti `.Z. ata Q Kati Kati ataao ta. .p�` ati ta• ��o ati a� tia Q° 2.5 2 1.5 1 0.5 0 �a �O Je. 5� �e Station 4 : Number of rescue call by year ■ 1 OJT `tee Qye `tea °,�z Jte tee. 5� �e ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 234 Page 151 Clarington Emergency and Fire Services Fire Master Plan 40 35 30 25 20 15 10 5 0 IIIIII 911 Unknown 30 25 20 15 10 5 0 Station 4 : Number of other calls by year Automobile Lockout Other Response:Assistance to Other Response: MutuaI Aid other agencies/Public Service Station 4 : Number of structural fires by year ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 235 Page 152 Clarington Emergency and Fire Services Fire Master Plan Station 5 Historic Information 110 95 90 85 80 Station 5 : Number of calls by year POMAX 2015 2016 2017 2018 2019 2020 16 14 12 10 8 6 4 2 I I 0 F Station 5: Number of calls by month 11111111111 III ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 . ■ 2020 Page 236 Page 153 III ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 . ■ 2020 Page 236 Page 153 Clarington Emergency and Fire Services Fire Master Plan Station 5: Number of calls by day 25 15 10 5 0 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 12 10 8 Station 5 : Number of calls by hour II�IIJ���1�116VII�N��pdNIIIIIIIVIIIIII, 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Page 2 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 154 Clarington Emergency and Fire Services Fire Master Plan 35 30 25 20 15 10 5 0 4 Station 5 : Number of accident calls by year Accident:Pedestrian Struck Accident:Vehicle Station 5 : Number of alarm calls by year 0 o � 5' Pa��y� Paid 1 11 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 238 Page 155 Clarington Emergency and Fire Services Fire Master Plan 7 6 5 4 3 2 1 0 Station 5 : Number of structural fire calls by year ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 239 Page 156 Clarington Emergency and Fire Services Fire Master Plan Station 5 : Number of non structural calls by year 12 10 6 4 2 0 11 11 POMAX ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 Page 240 Page 157 Clarington Emergency and Fire Services Fire Master Plan 60 50 40 30 20 10 0 Station 5 : Number of medical calls by year Medical:Assist Medical: Emergency Station 5 : Number of public hazard calls by year 8 7 6 5 4 3 0 Lai\ �° . L� • ca Z& c4 r z atia Q atiat Q���� Q �a et • y0 .0,�r �`te �a ai ta. Kati �\`° �atia Q ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 POMAX Page 241 Page 158 Clarington Emergency and Fire Services Fire Master Plan 5 4 3 2 1 0 911 Unknown Station 5 : Number of other calls by year Other Response:Assistance to other agencies/Public Service ■ 2015 ■ 2016 ■ 2017 ■ 2018 ■ 2019 ■ 2020 Other Response:Mutual Aid POMAX Page 242 Page 159 Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Council Date of Meeting: June 19, 2023 Report Number: PDS-041-23 Submitted By: Carlos Salazar, Director of Planning and Infrastructure Services Reviewed By: Rob Maciver, Deputy CAO/Solicitor Resolution#: File Number: By-law Number: Report Subject: Parkland and Open Space Dedication By -Law Recommendations: 1. That Report PDS-041-23 and any related delegations or communication items, be received; 2. That the proposed Parkland and Open Space Dedication By-law Attachment 1, to Report PDS-041-23, be approved; and 3. That all interested parties listed in Report PDS-041-23 and any delegations be advised of Council's decision Page 243 Municipality of Clarington Report PDS-041-23 Report Overview Page 2 This report has been prepared to explain the proposed changes to the Municipality's Parkland and Open Space Dedication By-law as a result of the recent legislative changes of Bill 23, More Homes Built Faster Act, 2022 ("Bill 23") and associated amendments to Sections 42 and 51 of the Planning Act, R.S.O. 1990, c. P.13, as amended (the "Planning Act"), which implements parkland dedication. The proposed By-law has also been revised to address some minor technical issues with the existing by-law and clarify procedures and exemptions. 1. Background 1.1 Council recently approved the Municipality's current Parkland and Open Space Dedication By-law (By-law 2022-043) on September 12, 2022. This was a reaction to one of the legislative changes in Bill 197 that set to expire all municipal parkland dedication by-laws on September 18, 2022, which contained alternative rates, unless a new parkland by-law was passed in accordance with the Act. Any new parkland by-laws passed would enable municipalities to continue to use the alternative rates. 1.2 On October 25, 2022, just one month after most municipalities updated their parkland by-laws, the Provincial Government introduced legislation (Bill 23) that made significant changes to the planning approval process, including parkland dedication rates, in order to build housing faster and bring costs down (refer to report PDS-054-22). Bill 23 received Royal Assent on November 28, 2022. Standard Rate and Alternative Rate for Parkland Dedication 1.3 There are two ways to calculate the residential parkland dedication rates as set out in the Planning Act. The Standard Rate, which is based on a percentage of the total land area proposed for development and the Alternative Rate, which is based on the total number of proposed units. The purpose of the alternative parkland dedication rate is to address parkland requirements for higher density residential developments. In such cases the 5% parkland dedication rate does not yield sufficient lands in relation to the population levels generated by higher density developments. Therefore, using a rate based on the number of units yields a higher parkland dedication rate for these types of projects. The Planning Act requires that local Official Plans contain specific policies in order for the alternative rate provision to be utilized in a by-law. 1.4 The most significant changes to the parkland dedication provisions in the Planning Act introduced by Bill 23 are the reductions to the alternative rates by half (from 1 ha per 300 dwelling units to 1 ha per 600 dwelling units where parkland is conveyed or from 1 ha per 500 dwelling units to 1 per 1000 dwelling units for cash -in -lieu contributions). It Page 244 Municipality of Clarington Page 3 Report PDS-041-23 also introduced a maximum cap for the residential alternative rate of 10% for development that is 5 ha or less and 15% for lands that are greater than 5 ha. 1.5 Municipalities do not have the authority to collect more than what the Planning Act allows for, therefore, the new residential alternative rates takes effect immediately regardless of what the recently approved Parkland and Open Space Dedication By-law states, subject to certain transitional regulations. This effectively makes all the new municipal parkland by-laws that referenced the previous alternative rates out of date given the new changes. 1.6 However, it is still important to update the by-law to be consistent with the Act to eliminate any confusion. Given the recent changes to the Planning Act, and in anticipation of any future changes to the alternative rate, the proposed by-law eliminates any specifics about the rates and instead defers to the Act directly for the rates. 1.7 The Municipality is taking this opportunity to update the Parkland and Open Space Dedication By-law and add some clarity to the By-law after working with it over the last few months. The proposed By-law would replace the current By-law 2022-043. 2. Proposed Parkland and Open Space Dedication By-law 2.1 A copy of the proposed Parkland and Open Space Dedication By-law is attached to this report (Attachment 1). In addition to referring directly to the Planning Act for the alternative rates, a few inconsequential changes are introduced to address some minor technical issues with the existing by-law and clarify procedures and exemptions. Headings are also proposed in the By-law to add further clarity to the different sections. Proposed General Revisions 2.2 Any references to "cash in lieu" have been revised to "payment in lieu" to be consistent with the terminology under the Planning Act. Mixed Use Developments 2.3 For Mixed use developments greater clarity is added to only be applicable to the mixed - use building, as opposed to a mix of uses on the same site. Only the residential rate is applicable to the mixed -use building. The intent is to encourage no extra charge for the commercial tenants on the ground floor of an apartment building and to eliminate complex calculations between the different rates. The definition of mixed -use development is proposed to be removed, while the definition of mixed use building remains. Redevelopment of Lands Page 245 Municipality of Clarington Page 4 Report PDS-041-23 2.4 For redevelopment of lands, Section 9 of the current By-law, is proposed to be removed, which speaks to expansions to buildings that are greater than 100 sqm. This section was mainly used for industrial and commercial uses but is being removed because expansions to buildings do not trigger a payment in lieu of parkland since the entire developable area of the land is used to calculate payment in lieu of parkland when the initial building is built, typically 2% of the entire site area. Collection of parkland payments when there is an expansion to the building on a site which has already contributed towards parkland payment based on the site area would be a double charge and would not be permitted under the Act. Encumbered Lands 2.5 Some minor edits were added to the encumbered lands section to refer to the Act in anticipation of changes made through Bill 23 but have not been proclaimed. The Municipality may need to allow for the acceptance of certain encumbered lands for parkland purposes, such as strata parks or privately owned public spaces for example. The details of this requirement is anticipated to be provided by the province through regulations. Once the regulations have been developed, this section of the Act is anticipated to be proclaimed. Exemptions 2.6 Two new exceptions from parkland dedication and payment are proposed to be added, in addition to the already exempted developments for registered charitable, non-profit and hospital organizations, as well as all public facilities developed by a government agency. The two new additions reflect the recent changes to the Act from Bill 23 which now includes non-profit housing development as defined in subsection 4.2 (1) of the Development Charges Act, as well as additional dwelling units. It should be noted that the municipality has never collected payment in lieu of parkland for additional dwelling units, therefore this provision only adds clarity to what is already in practice. Further Review of Parkland By-law 2.7 There may be a desire to have a reduced rate to encourage higher densities within Clarington's core areas, an updated by-law would be required to determine where the appropriate locations would be and to what extent the rate should be reduced. Further review of the parkland dedication rates for the identified Priority Intensification Areas within the Clarington Official Plan would be reviewed through the next comprehensive Official Plan Review. 2.8 The Province has also indicated exceptions for affordable or attainable residential units, however this section of the Planning Act is not in force. If legislation comes into force, the Municipality will have to review the effects on the Parkland and Open Space Dedication By-law and implement the changes as required. Staff have chosen not to Page 246 Municipality of Clarington Report PDS-041-23 Page 5 include these provisions in the proposed By-law at time until more information is released from the Province and until the implementation tools are better understood. Appeal of Parkland By-laws 2.9 Bill 197 also introduced amendments to the Planning Act to provide individuals the ability to appeal the passing of a new municipal parkland dedication by-law. The Municipality will be required to provide Notice of Passing of any new parkland dedication by-law within 20 days of passing, and any person or public body will have 40 days to file an appeal to the Ontario Land Tribunal. It should be noted that when the parkland by-law was amendment in September of last year, the Municipality did not receive any appeals. The proposed changes to the By-law are intended to add clarity to the parkland requirements and implements recent changes to the Act which generally favour the developer, therefore no anticipated appeals are expected. 3. Financial Considerations 3.1 The acquisition of parkland and collection of payment -in -lieu of parkland fees through alternative parkland dedication rates, is necessary to ensure that the Municipality can fund the ongoing acquisition of parkland and open space. For this reason, it is critical to ensure that the Municipality has the ability to continue to apply an appropriate parkland dedication rate in the most efficient and clear manner for all development in Clarington, to enable the Municipality to maximize the total amount of parkland or payment -in -lieu that the Municipality can acquire through the development approvals process. 3.2 While development charges are collected for recreational purposes including playgrounds, trails, and facilities; the land for these amenities is not eligible for recovery under the Development Charges Act. The parkland dedication fees provide a funding source for the lands that will be needed as the Municipality grows. 3.3 By advancing the recommended By-law, the Municipality will have the opportunity to continue to use the parkland dedication rates with added clarity and consistency with the Planning Act changes. 3.4 Should Council choose to not advance a new parkland dedication by-law, the rates in the Act are still applicable but will remain outdated in the current by-law and the clarity on how to determine parkland dedication or payment, especially for mixed use developments will remain unclear. Further the added exceptions for the defined non- profit and for ADUs, will remain obsolete in the current by-law. Page 247 Municipality of Clarington Page 6 Report PDS-041-23 4. Concurrence 4.1 This report has been reviewed by the Deputy CAO/Treasurer 5. Conclusion 5.1 Considering the revisions to the Planning Act under Bill 23, it is recommended that Council approve the proposed Parkland and Open Space Dedication By-law. This will address some minor technical issues with the existing by-law and clarify procedures and exemptions. It is also consistent with the recent changes in the Planning Act and may not require such frequent updates to the By-law now that it proposes to defer to the rates as set out in the Planning Act, as they change from time to time. Staff Contact: Nicole Zambri, Senior Planner, 905-623-3379 ext. 2422 or Nzambri(c�clarington.net . Attachments: Attachment 1 — Parkland Dedication By -Law Interested Parties: List of Interested Parties available from Department. Page 248 Attachment 1 to PDS-041-23 If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 The Corporation of the Municipality of Clarington By-law Number 2023- being a By -Law to govern Parkland and Open Space Dedication in the Municipality of Clarington. WHEREAS Section 42(1) of The Planning Act, R.S.O. 1990 provides the Council with the authority to enact a by-law to require the conveyance of land to the municipality for park or other public recreational purposes as a condition of development or redevelopment of land. AND WHEREAS Section 51.1 of The Planning Act, R.S.O. 1990 provides that the approval authority may impose, as a condition of the approval of a plan of subdivision, that land be conveyed to the municipality for park or public recreational purposes; AND WHEREAS Section 53 of The Planning Act, R.S.O. 1990 provides that the approval authority may impose, as a condition of approval of a consent, that a payment of money be required by the municipality in lieu of the conveyance of land for park or recreational purposes; AND WHEREAS Section 42(3) of The Planning Act, R.S.O. 1990 provides the Council with the authority pursuant to the Official Plan policies to require the conveyance of land at an alternative rate to the conveyance of land under Section 42(1) of The Planning Act, R.S.O. 1990; AND WHEREAS Section 42(6) of The Planning Act, R.S.O. 1990 provides the Council with the authority to require a payment in lieu of the value of land otherwise conveyed under Section 42(1) of The Planning Act, R.S.O. 1990; AND WHEREAS Section 42(6.0.1) of The Planning Act, R.S.O. 1990 provides the Council with the authority to require a payment -in -lieu of the value of land otherwise conveyed under Section 42(3) of The Planning Act, R.S.O. 1990 at the alternative rate for development or redevelopment, as an alternative method to the conveyance of land under Section 42(6) of The Planning Act, R.S.O. 1990; AND WHEREAS the Council of the Corporation of the Municipality of Clarington deems it appropriate to repeal By -Law 2022-043. NOW THEREFORE BE IT RESOLVED THAT the Council of the Corporation of the Municipality of Clarington enacts as follows: Page 249 1. For the purpose of interpretation of this by-law, the following definitions shall apply: (a) "Act" means the Planning Act, R.S.O. 1990, c. P.13, as amended; (b) "Consent" shall refer to the subdivision of land as defined in Section 53 of the Act; (c) "Development" shall refer to i. the construction, erection, or placing of a building or structure, excluding infrastructure authorized by the Environmental Assessment Act; ii. the addition to or alteration of a building or structure; iii. the creation of a new lot and/or increase in the number of permitted units on a lot; iv. the change in use or the increase in intensity of use of any building, structure, or premises; V. site -grading, excavation, removal of topsoil or peat, the placing or dumping of fill, or the extraction of mineral aggregate; vi. drainage works, except for the maintenance of existing municipal and agricultural drains; or vii. redevelopment. (d) "Dwelling Unit" shall refer to one or more habitable rooms, occupied or capable of being occupied as an independent and separate housekeeping establishment, in which separate kitchen and sanitary facilities are provided for the exclusive use of the occupants; (e) "Gross Developable Area" shall refer to the area of the site or lot less the area designated Environmental Protection and the Minimum Vegetation Protection Zone, and major infrastructure that is built or approved under the Environmental Assessment Act; (f) "Municipality" shall refer to the Corporation of the Municipality of Clarington, or its geographical area, as the context requires; (g) "Minimum Vegetation Protection Zone" shall refer to a vegetated buffer area surrounding a natural heritage feature or hydrologically sensitive feature within which only those land uses permitted within the feature itself are permitted. A vegetation protection zone is intended to be restored with native, self-sustaining vegetation and be of sufficient width to protect the feature and its functions from effects of the proposed change and associated activities before, during, and after, construction, and where possible, restore and enhance the feature and/or its function; Page 250 (h) "Mixed Use Building" shall refer to a building containing residential units and at least one non-residential use; (i) "Natural Heritage System" shall refer to a system made up of natural heritage features and areas, hydrologically sensitive features and linkages intended to provide connectivity (at the regional or site level) and support natural processes which are necessary to maintain biological and geological diversity, natural functions, viable populations of indigenous species, and ecosystems. These systems can include natural heritage features and areas, hydrologically sensitive features, federal and provincial parks and conservation reserves, other natural heritage features, lands that have been restored or have the potential to be restored to a natural state, areas that support hydrologic functions, and working landscapes that enable ecological functions to continue; (j) "Park" shall refer to municipally owned or leased sites that are designated, and appropriately developed (including un-serviced sites), for community use for indoor and/or outdoor, programmed and/or self -directed sport, fitness, physical activity, culture, leisure and social pursuits; (k) "Park Purposes" shall refer to the use of land for public park or other public recreational purposes; (1) "Plan of Subdivision" shall have the same meaning as found in the Act; (m) "Site Plan" shall have the same meaning as found in the Act; (n) "Regulatory Shoreline" shall refer to the lands identified in the Municipality's Official Plan and the implementing Zoning By-law in accordance with the detailed Lake Ontario Flood and Erosion Risk Mapping of the relevant Conservation Authority; (o) "Unserviced Park" shall refer to a park that provides recreational opportunities and facilities, including playing fields, but without outdoor lighting, accessory commercial facilities, paved parking lots or permanent water or sewer facilities; Parkland Dedication Rates 2. As a condition of the development of land, including approval of a plan of subdivision, site plan or consent, land shall be conveyed to the Municipality for park purposes at the rate of two percent of the lands for commercial or industrial development, and a rate of five percent in all other cases. Page 251 3. Notwithstanding Section 2, for land that is developed for residential purposes, land shall be conveyed to the Municipality for park purposes at the standard or alternative rate as set out in the Act, whichever is greater. Mixed Use Building 4. For mixed use buildings, only the residential rate is applicable to the development proposal. Payment in lieu 5. At the discretion of the Director of Planning and Infrastructure Services, the Municipality may, in substitution for the conveyance of land, require payment in lieu, or a combination of payment in lieu and the conveyance of land under the following circumstances: (a) The use of the alternative parkland conveyance or dedication consumes more than 10% of the site area thereby rendering the site undevelopable. (b) The amount of land for parkland dedication does not result in a sufficient area for park development; or (c) The dedication of land is not deemed necessary. 6. If a payment in lieu of parkland is required pursuant to this by-law, the rate and value of the land will be determined in accordance with the Act. 7. Notwithstanding Section 6, for land developed for residential purposes, the rate for the payment in lieu will be the standard or alternative rate as set out in the Act, whichever is greater. 8. For the purposes of this by-law, any land valuation shall be supported by a certified land appraisal, to the satisfaction of the Director of Planning and Development Services. Redevelopment of Lands 9. If land has been conveyed or is required to be conveyed for park purposes or a payment in lieu of land for park purposes has been received or is owing under a condition imposed under Sections 51.1 or 53 of the Act, no additional conveyance or payment in respect of the land subject to the conveyance or payment may be required unless; (a) there is a change in the proposed development or redevelopment that would increase the density of development; or, Page 252 (b) land originally proposed for development or redevelopment for commercial or industrial purposes is now proposed for development or redevelopment for other purposes. Open Space Lands 10. The Municipality shall not accept any natural heritage system, minimum vegetation protection areas, regulatory shoreline, flood susceptible lands or lands with hazardous characteristics in fulfilment of the land conveyance requirements of this by-law. 11. Notwithstanding the above requirements, the Municipality shall request the gratuitous dedication of open space lands including natural heritage system, minimum vegetation protection areas, regulatory shoreline, flood susceptible lands and lands with hazardous characteristics within development or redevelopment proposal. 12. These lands may be required to be dedicated to the Municipality or appropriate Conservation Authority where such dedication is consistent with the Municipality's Official Plan objectives or the long term goals of such Conservation Authority. 13. In determining the area of land required for conveyance of land or payment in lieu of land conveyance for park purposes, gross developable area shall be used, provided the lands referred to in Section 11 are dedicated to the Municipality gratuitously. Encumbered Lands 14. Lands conveyed to the Municipality pursuant to this by-law shall be free of encumbrances except in accordance with the Act or as may be satisfactory to the Municipal Solicitor and conveyed in a condition satisfactory to the Municipality, bearing the full depth of its original topsoil, being clear of unconsolidated fill or refuse and graded in accordance with the Municipality's policies. Exemptions 15. Notwithstanding other applicable sections in this by-law, the following uses shall be exempt from the requirement of parkland dedication: (a) An Additional Dwelling Unit as defined by the Zoning By-law for the Municipality; (b) Residential uses proposed for non-profit housing development defined in subsection 4.2 (1) of the Development Charges Act; Page 253 (c) all private structures developed by registered charitable and hospital organizations; and, (d) all public facilities and buildings developed by a government agency. General 16. Should any part of this By -Law be declared by a Court of competent jurisdiction to be invalid in part or in whole, the validity of the other provisions of this By -Law shall not be affected thereby, the intent of Council being that each provision of the By -Law shall be determined to be separately valid and enforceable to the fullest extent permitted by law. 17. By -Law 2022-043 is repealed on the date of passing hereof. Passed in Open Council this day of June, 2023 Adrian Foster, Mayor John Paul Newman, Deputy Clerk Page 254 Clarington Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Joint Committees Date of Meeting: June 19, 2023 Report Number: PDS-042-23 Submitted By: Carlos Salazar, Director of Planning and Infrastructure Services Reviewed By: Rob Maciver, Deputy CAO/Solicitor Resolution#: File Number: By-law Number: Report Subject: Infrastructure Canada — Active Transportation Fund — Grant Funding Agreement Authorization Recommendations: 1. That Report PDS-042-23, and any related delegations or communication items, be received; 2. That the Mayor and Clerk, on behalf of the Corporation of the Municipality of Clarington, be authorized to execute the Active Transportation Fund grant funding agreement for the Bowmanville Avenue Multi -Use Path from Baseline Road to Hwy. 2, between the Government of Canada and the Corporation of the Municipality of Clarington; and 3. That all interested parties listed in Report PDS-042-23, and any delegations be advised of Council's decision. Page 255 Municipality of Clarington Report PDS-042-23 Report Overview Page 2 The Municipality of Clarington submitted an application to Infrastructure Canada's Active Transportation Fund for grant funding to construct a multi -use path on Bowmanville Avenue from Baseline Road to Regional Highway 2. Clarington has received funding up to $232,560 for this initiative. The report is written to provide authorization for the Mayor and Clerk to execute the agreement with the Government of Canada. 1. Background 1.1 The Active Transportation Fund (ATF) provides grant funding to projects aimed at supporting a modal shift away from cars and towards active transportation, in support of Canada's National Active Transportation Strategy. The ATF invests in projects that build new and expanded networks of active transportation infrastructure in addition to supporting active transportation planning and stakeholder engagement activities. 1.2 In March 2022, the Municipality of Clarington submitted various applications for funding from the ATF, which consisted of several infrastructure projects and the development of a Wayfinding System Strategy (WSS) initiative (previously approved). One of the infrastructure project applications included the construction of a 3.Om wide asphalt multi- use path in the west boulevard of Bowmanville Avenue from Baseline Road to Regional Hwy. 2. In January 2023, the Municipality was notified as being a successful recipient of funding for the Bowmanville Avenue Multi -Use Path project with an upset limit of $232,560. 1.3 The multi -use path will be constructed as part of the larger Region of Durham led road widening and reconstruction projects along the Bowmanville Avenue Corridor. The installation of a multi -use path along Bowmanville Avenue has many benefits, including: • Improved safety by providing a buffered, separated facility with controlled, protected cross rides at intersections and increased improved corridor streetlighting. Providing better connectivity for surrounding schools, shopping districts, parks and the future Bowmanville GO Station and surrounding MTSA. Providing multi -modal, non -vehicular paths of travel for adjacent subsidized housing. 1.4 The construction of this multi -use path will be broken into two phases with an anticipated completion date of 2026. Page 256 Municipality of Clarington Report PDS-042-23 2. Proposal Page 3 2.1 Prior to entering into an agreement, Infrastructure Canada requires that a resolution be passed authorizing the Municipality to execute the agreement with the Government of Canada. Similar to other agreements with the Government of Canada, delegation of authority to enter into the agreement would be given to the Mayor and Clerk. 3. Financial Considerations 3.1 Grants provide the Municipality with an external source of funding programs, services and projects to the benefit of taxpayers. This grant was not contemplated as part of the 2023 Budget and provides an additional funding source to the Municipality. 3.2 The Municipal portion of the project will be funded from already approved funds. The acceptance of the grant provides the Municipality with additional resources to meet the goals of this project. 3.3 If Council does not wish to enter into the agreement, the Municipality would not be able to receive the grant funding. 4. Concurrence This report has been reviewed by the Deputy CAO / Treasurer who concurs with the recommendations. 5. Conclusion It is respectfully recommended that the Mayor and Clerk on behalf of the Municipality of Clarington be authorized to execute the agreement between the Government of Canada and the Municipality of Clarington. Staff Contact: Kevin Heathcote, Capital Works Supervisor, 905-623-3379 ext. 2302 or kheathcote@clarington.net. Attachments: Not Applicable Interested Parties: The following interested parties will be notified of Council's decision: Infrastructure Canada — Active Transportation Fund. Page 257 Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Joint Committees Date of Meeting: June 19, 2023 Report Number: LGS-022-23 Submitted By: Rob Maciver, Deputy CAO/Solicitor Reviewed By: Mary -Anne Dempster, CAO Resolution#: File Number: By-law Number: Report Subject: Road Closure and Conveyance Policy Recommendations: 1. That Report LGS-022-23, and any related delegations or communication items, be received; 2. That the Policy attached to Report LGS-022-23, as attachment 1, be adopted; 3. That the application fee of $250 and the processing fee of $750 be approved for inclusion in the fees by-law; and 4. That all interested parties listed in Report LGS-022-23, and any delegations be advised of Council's decision. Page 258 Municipality of Clarington Report LGS-022-23 Report Overview Page 2 This report describes the need for a Council -endorsed Road Closure and Conveyance Policy. The report goes on to propose such a policy and to elaborate on its important features. 1. Background Paragraph Sub -heading (optional) — do not number the sub -headings 1.1 Subsection 270(1) of the Municipal Act, 2001, provides that a municipality shall adopt and maintain policies with respect to its sale and disposition of land. 1.2 Council previously enacted By-law 2011-011 to govern the sale and disposition of surplus municipal land, however, the sale of road allowances was expressly excluded. 1.3 The Municipality regularly receives requests from developers and other landowners to purchase unopened municipal road allowances, however, Council has never formally endorsed any criteria or specific methodology to process such requests. 1.4 This lack of a formal policy has led to inefficiencies in the past. In one recent case, Council initially approved a conveyance in principle but later withheld final approval causing confusion and uncertainty for the applicant. 1.5 The policy recommended by this report will bring clarity and efficiency to the process of disposing of road allowances that do not serve a current or future municipal need. 1.6 Importantly, under the proposed policy, Council will retain the final decision about all closures and conveyances of municipal road allowances. 2. Policy Summary 2.1 The recommended policy provides for the creation of a standard application form to be completed and submitted before a request to close and convey a road allowance will be considered. 2.2 A non-refundable application fee is recommended in the amount of $250. 2.3 Once all application requirements have been submitted, the Manager of Development Engineering, with the approval of the Director of Planning and Infrastructure Services, will make a preliminary determination as to whether the allowance in question is surplus to municipal or other public agency needs. To better inform this determination, Staff will consult with the relevant public agencies listed in Appendix "B" to the policy. Page 259 Municipality of Clarington Report LGS-022-23 Page 3 2.4 In addition to any other relevant factors, the proposed policy enumerates several criteria that would exclude a road allowance from consideration for conveyance. These criteria are found in section 5.3 of the proposed policy. 2.5 If the preliminary determination is made that does not support the closure and conveyance of the road allowance, Staff would inform the applicant of the decision to refuse the request and would take no further action unless directed by Council. 2.6 If a preliminary determination is made that Staff can support closure and conveyance of the road allowance in question, there is a detailed process that Staff would follow to bring the matter to Council for approval. 2.7 The Staff recommendation will include several standard conditions listed in section 5.8 of the proposed policy. For instance, the applicant will be responsible for the costs of surveys and appraisals, as well as a non-refundable processing fee of $750. 2.8 If approved by Council, the transaction would proceed on the basis of the land value determined by a certified appraisal obtained by Staff but paid for by the applicant. The sale price would be the value as determined by the appraisal. 2.9 As a final step, Council would be required to enact a by-law to close and convey the road allowance to the applicant. The by-law would appear on the next available Council agenda following fulfilment of all terms and conditions by the applicant. 3. Financial Considerations 3.1 Upon successful completion of a road closure and conveyance, the applicant will be required to pay the fair market value according to the certified land appraisal. Proceeds of the sale would then be available to purchase other lands for which there is a municipal need. 4. Concurrence This report has been reviewed by the Director of Planning and Infrastructure Services who concurs with the recommendations. 5. Conclusion It is respectfully recommended that Council approve the Road Closure and Conveyance Policy described in Report LGS-022-23. Staff Contact: Robert Maciver, Deputy CAO/Solicitor, 905-623-3379 ext. 2013 or rmaciver@clarington.net. Page 260 Municipality of Clarington Report LGS-022-23 Attachments: Page 4 Attachment 1 — Draft Road Closure and Conveyance Policy Interested Parties: There are no interested parties to be notified of Council's decision. Page 261 Attachment 1 to Report LGS-022-23 Council Policy Clarboon If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Number: CP-00# Title: Road Closure and Conveyance Type: Legal Services Sub -type: Real Estate Owner: Legislative Services Legal Approved By: Council Approval Date: Click or tap to enter a date. Effective Date: Click or tap to enter a date. Revised Date: Click or tap to enter a date. Applicable to: All Staff 1. Legislative or Administrative Authority: Municipal Act, 2001, S.O. 2001, c. 25, including but not limited to sections 9, 11, 26, 27, 31, 34, and 43. 2. Purpose: To provide an approved framework for Staff to follow upon receipt of a request to close and convey a municipal road allowance into private ownership. 3. Scope: This policy shall apply to circumstances in which a member of the public is seeking to acquire ownership of a surplus municipal road allowance. 4. Definitions: In this Policy, "applicant" means the individual or party originating a request for the closure and conveyance of any municipal road allowance; "appraisal" means an appraisal of land value prepared by an accredited member of the Appraisal Institute of Canada; "convey" means the transfer of either a fee simple interest or an easement; Page 1 of 10 Page 262 Council Policy Clarboon If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 "reference plan" means a plan prepared by a certified Ontario Land Surveyor to describe the lands to be closed and conveyed; and "road allowance" follows the same usage as in the Ontario Municipal Act, 2001, S.O. 2001, c. 25. 5. Policy Requirements: Application 5.1. The Municipality will not consider any request to close and convey a road allowance unless the applicant has completed and submitted the application included as Schedule "A" to this policy together with the non-refundable application fee. Initial Screening 5.2. The Manager of Development Engineering, with the approval of the Director of Planning and Infrastructure Services, and in consultation with the relevant Staff and external bodies listed in Schedule "B" to this policy, shall make a preliminary determination as to whether the road allowance in question is surplus to the needs of the Municipality. 5.3. In addition to other any other considerations determined to be relevant by the Manager of Development Engineering and the Director of Planning and Infrastructure Services, it is the policy of the Municipality not to declare as surplus to the needs of the Municipality any road allowance that: 5.3.1. is situated outside of an urban settlement or hamlet boundary; 5.3.2. does not abut property already owned by the applicant; 5.3.3. due to its closure would compromise the future development of surrounding lands; 5.3.4. due to its closure would generate an excessive burden of traffic elsewhere; 5.3.5. would prohibit or restrict the safe passage of vehicles and/or pedestrians into recreational parks or other facilities; Page 2 of 10 Page 263 Council Policy Clarboon If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 5.3.6. would obstruct or restrict the access into lands which have enjoyed the convenience of the road allowance for access purposes; 5.3.7. abuts on land, including land covered by water, owned by the Crown in right of Canada; 5.3.8. leads to or abuts on a bridge, wharf, dock, quay or other work owned by the Crown in right of Canada; or 5.3.9. is covered by water. 5.4. If the Manager of Development Engineering and the Director of Planning and Infrastructure Services determine that the road allowance should not be declared surplus, the applicant shall be advised of the reasons for the determination, and the application shall not be processed further unless Council instructs otherwise. Procedure for Council Approval 5.5. Upon a preliminary determination that the road allowance is surplus to the needs of the Municipality, the applicant shall be so advised, and the remaining steps in this policy shall be followed. 5.6. The Manager of Development Engineering, under the supervision of the Deputy CAO/Solicitor, shall prepare a recommendation report for the General Government Committee, setting out the details of the request, and the reasons for the recommendation. 5.7. Written notice of the General Government Committee meeting at which the recommendation report will be considered shall be provided to every owner of land that abuts the road allowance proposed to be conveyed, and every owner of land that abuts the applicant's property. 5.8. The Staff recommendation shall be subject to the following conditions: 5.8.1. That the applicant shall pay the cost to prepare and register a reference plan for the property to be conveyed; 5.8.2. That the applicant shall pay the cost for the Municipality to obtain an appraisal of the property to be conveyed; Page 3 of 10 Page 264 Council Policy Clarboon If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 5.8.3. That the Deputy CAO/Solicitor is authorized to enter into an agreement of purchase and sale with the applicant with a purchase price consistent with the appraisal obtained for the value of the property, and upon such other terms considered necessary by the Deputy CAO/Solicitor; 5.8.4. That the applicant shall pay the non-refundable processing fee; and 5.8.5. That once all conditions have been fulfilled by the applicant, the Deputy CAO/Solicitor shall prepare the necessary by-law to give effect to the closure and conveyance of the road allowance. 5.9. If Council adopts the staff recommendation to close and convey the road allowance, there will be no further reporting to Council. Provided that the conditions are satisfied, the necessary by-law to close and convey the road allowance will appear on the Council agenda for enactment, following which the transaction will be concluded by the Deputy CAO/Solicitor. Appraisal 5.10. For the purposes of this policy, the Municipality shall retain an accredited, qualified, and independent appraiser to determine the fair market value of the property to be conveyed. 5.11. For purposes of any appraisal required by this Policy, it shall be assumed that the road allowance, 5.11.1. is a non -independently viable tract of land due to its configuration, land area or specific location; 5.11.2. will be assimilated by the parent parcel; 5.11.3. has in place the identical official plan designation and zoning classification and development potential of the parent parcel; and 5.11.4. is vacant. Page 4 of 10 Page 265 Council Policy Clarboon If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 5.12. The principle of contribution shall apply to any appraisal obtained pursuant to this policy. The principle of contribution is a valuation principle that states that the value of any component of a property is measured by how much it adds to the net income or market value by reason of its presence or detracts from the net income or market value by reason of its absence, and the value of any factor of production depends upon its contribution to net income or value and not upon its cost. Schedules 5.13. The following Schedules are integral to and form a part of this policy: 5.13.1. Schedule "A" —Application Form 5.13.2. Schedule "B" — Circulation List for Consultation 5.14. The Deputy CAO/Solicitor is authorized to amend the Schedules to this policy as needed. 6. Roles and Responsibilities: 6.1. Council is responsible for: 6.1.1. Approving this policy and associated fees. 6.2. Chief Administrative Officer (CAO) is responsible for: 6.2.1. Final endorsement of any Staff recommendations proceeding to Council. 6.3. Deputy CAO/Solicitor is responsible for: 6.3.1. Obtaining all required property records and confirmation of ownership. 6.3.2. Reviewing reference plans and appraisal reports for the purposes of this policy. 6.3.3. Negotiation and execution of any agreements of purchase and sale authorized pursuant to this policy. Page 5 of 10 Page 266 Council Policy Clarboon If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 6.3.4. Completion of land transactions authorized pursuant to this policy. 6.3.5. Approve any alterations to the Schedules to this policy proposed by the Manager of Development Engineering. 6.4. The Director of Planning and Infrastructure Services is responsible for: 6.4.1. Approving decisions of the Manager of Development Engineering pursuant to this policy. 6.5. Other Directors are responsible for the following within their scope of authority: 6.5.1. Providing input on the advisability of road closure and conveyance. 6.6. The Manager of Development Engineering is responsible for: 6.6.1. Receipt of applications pursuant to this policy. 6.6.2. Circulating the application as required. 6.6.3. Reaching a conclusion as to whether the road allowance is surplus to the needs of the Municipality. 6.6.4. Notification to abutting landowners. 6.6.5. Updating the Schedules to this policy, as required. 7. Related Documents: 7.1. Clarington By-law 2011-011 8. Inquiries: Deputy CAO/Solicitor Page 6 of 10 Page 267 Council Policy Clarftwn If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 9. Revision History: Date Description of Changes Approved By Page 7 of 10 Page 268 Council Policy Clarftwn If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 SCHEDULE "A" — ROAD CLOSURE AND CONVEYANCE APPLICATION FORM PART A — APPLICANT INFORMATION Name: Address: Email: Telephone: PART B — DESCRIPTION OF ROAD ALLOWANCE Town/Township: Concession: PART C — REQUEST TO CLOSE AND CONVEY /We, the undersigned, being the registered owner(s) of property abutting the road allowance described above, request to purchase the road allowance accordance with the Road Closure and Conveyance Policy. PART D — AGREEMENT TO PAY COSTS /We, the undersigned, agree to pay all costs associated with the closure and conveyance prior to the passing of the by-law in accordance with the Municipality's Policy and Procedure for Road Closure and Conveyance. SIGNATURE OF APPLICANT(S): DATE: Submit to: Planning and Infrastructure Services Department, Manager of Development Engineering Page 8 of 10 Page 269 Council Policy Cladwoon If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 SCHEDULE "B" - CIRCULATION LIST FOR CONSULTATION Internal Circulation: Senior Leadership Team Municipal Clerk External Circulation: Company Address Contact Bell Canada 15 Victoria St FI-2 Chris King, Implementation Manager, Oshawa, ON L1 H Access Network Provisioning 8W9 P: 905-433-3350 E: Chris. kin bell.ca C.P Rail C.N. Rail Properties 1 Administration Ernie Longo, Senior Asset Manager Inc. Road P: 800-387-2039 Concord, ON L4K E: 1139 Central Lake 100 Whiting Chris Jones, Director, Planning and Ontario Avenue Regulation Conservation Oshawa, ON L1 H P: 905-579-0411 3T3 E: cjones .cloca.com Elexicon Energy 55 Taunton Rd Arthur Berdichevsky, Manager, Inc. East Engineering Ajax, ON L1T 3V3 P: 905-427-9870 E: aberdichevsk veridian.on.ca Enbridge Gas P.O. Box 650 Russ McLean, Manager of GIS; Distribution Inc. Scarborough, ON Jim Arnot, Manager of Drafting M1 K 5E3 P: 416-495-5228 E: Ganaraska Region P.O Box 328 Ken Thajer, Planning and Regulations Conservation Port Hope, On L1A Coordinator Authority 3W4 P: 905-885-8173 F: 905-885-9824 E: ktha'er rca.on.ca Page 9 of 10 Page 270 Council Policy Clarboon If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Hydro One Real 185 Clegg Road Cathy Ballah Estate (1-888-231- Markham, ON L6G P: 905 946-6256 6657) 1137 F: 905 946-6286 Ministry of Natural P.O. Box 7000 Denis LeMoire, South Central Planner Resources 300 Water Street P: Peterborough, ON E: K9J 8M5 Ministry of 1201 Wilson Tom Hewitt, Corridor Management Transportation Avenue P: 416-235-4953 (property) Ontario Building D, 7th E: Floor Downsview, ON M3M 1 J8 Public Works 4900 Yonge St, Mark Watson, Manager Government 10th Floor P: 416-512-5584 Service Canada - Toronto, ON M2N F: 416-512-5547 Geomatics Advisory 6A6 E: Division Regional 605 Rossland John Presta Commissioner of Works Municipality of Road East P: 905-668-7711 x3535 Durham Whitby, Ontario E: john.presta(a-_)durham.ca Works Department L1 N 6A3 Rogers 301 Marwood drive Triden Balasingam, System Planner, Communications Oshawa, ON L1 H Outside Plan Engineering 1 J4 P: 416-935-5173 E: Triden.Balasin am rci.ro ers.com Page 10 of 10 Page 271 Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Joint Committees Date of Meeting: June 19, 2023 Submitted By: Rob Maciver, Deputy CAO/Solicitor Reviewed By: Rob Maciver, Deputy CAO/Solicitor File Number: Report Number: LGS-023-23 Resolution#: By-law Number: Report Subject: Municipal Parking Payment Modernization Recommendations: 1. That Report LGS-023-23, and any related delegations or communication items, be received; 2. That all single-space parking meters in downtown Bowmanville be transitioned to a mobile parking application payment option in accordance with the contents of Report LGS-023-23; 3. That all pay and display parking meters be converted to accept credit card and debit card payments in accordance with the contents of Report LGS-023-23; 4. That all single-space parking meters in downtown Bowmanville be removed; 5. That the by-law included as attachment 1 to Report LGS-023-23 be enacted; and 6. That all interested parties listed in Report LGS-023-23, and any delegations, be advised of Council's decision. Page 272 Municipality of Clarington Report LGS-023-23 Report Overview Page 2 This Report sets out a recommended approach to move towards a cashless approach to paid parking as part of the Payment Modernization Initiative Report CAO-10-23. It is expected that both financial and productivity efficiencies will be realized due to the implementation of the recommendations. Significant planning and effort will be undertaken to ensure a robust communications and engagement strategy is undertaken to inform the public. 1. Background 1.1 The Municipality continuously explores opportunities to enhance processes and provide services that are more efficient. 1.2 As part of Report CAO-10-23, Municipal Parking Payment Modernization Council passed resolution #GG-097-23 to implement a cashless payment system. 1.3 Previously to the cashless initiative, Council adopted Resolution #GG-023-22 requesting a report on the possibility of installing paid parking meters at the municipal waterfront parking lots. 2. Removal of Paid Parking Meters 2.1 Paid municipal parking in Clarington is currently only in effect for a portion of historical downtown Bowmanville, corresponding more -or -less to the Bowmanville Business Improvement Area. In this area, there exists both on -street, single -vehicle parking spaces regulated by single-space parking meters, as well as paid parking lots regulated by centralized meters that print individual parking permits. 2.2 The rationale for paid parking is that it is necessary to create parking turnover and to prevent vehicles from occupying parking spaces in front of businesses for extended periods. 2.3 Single-space parking meters are the oldest type of parking regulation device. These devices are coin -operated, and they require considerable effort to reprogram. Revenue from these devices must be manually collected, and utilization statistics are not easily generated. 2.4 Due to the limited lifespan of the equipment and inflationary factors, the cost to maintain and operate single-space parking meters continues to escalate. Page 273 Municipality of Clarington Report LGS-023-23 Page 3 2.5 Approximately 140 of the 171 existing parking meters require immediate upgrade or replacement. Each meter costs approximately $500.00 to replace, and when meters were last installed in 2021, the installation cost was $1,500 for 25 meters. It is estimated that the elimination of single-space parking meters would result in a cost avoidance of $70,000 over 5 years. There would be additional cost avoidance attributable to reduced maintenance and repair. Upon the removal of single-space parking meters, MLE Officers would no longer be required to collect coins or perform any meter maintenance, allowing them to direct their efforts to more meaningful activities. 2.6 It is proposed that single-space parking meters will be removed and replaced with the mobile parking payment system explained below. 2.7 If approved by Council, Staff in Public Works will coordinate the removal of existing single-space parking meters with the work projected to be completed in October 2023. 3. Mobile Parking Payment Application 3.1 Earlier this year, through a competitive procurement process, HotSpot Parking Inc. was awarded a contract to provide Clarington with a mobile parking payment solution that will allow users to pay for parking using their mobile device. There is no cost to the Municipality for this technology; the vendor's revenues are generated solely through end -user fees. 3.2 This parking payment application operates by a license plate -based system that allows users to pay for parking directly from a mobile device. The customer can purchase parking time before getting out of their vehicle or without going to a machine avoiding inclement weather and snowbanks while trying to make a payment. 3.3 Other benefits to customers using the mobile parking payment application include: - Convenience; - A notification to the customer's mobile device when the time is about to expire; - The ability to add more time to your parking spot (up to the maximum time limit); - The ability to end a parking session early and be refunded for the remaining time; and - Enhanced personal safety. Page 274 Municipality of Clarington Page 4 Report LGS-023-23 3.4 Signage is proposed at regular intervals throughout the paid parking zone to inform the public of the payment options through the use of the mobile application ("app"), QR code, text SMS or website. 3.5 Activation of the mobile parking payment application for downtown Bowmanville is scheduled for August 1, 2023. 3.6 A brief transition period is proposed during which both coins and mobile payments would be accepted. Following the removal of the single-space parking meters as described above, the mobile payment application will become the exclusive method of parking payment for on -street, single -vehicle parking spaces. 4. Municipal Parking Lot Pay -and -Display Machines 4.1 There are currently five Municipal parking lots with pay -and -display machines that accept coins only. 4.2 Two existing machines have reached their end -of -life and require replacement at a cost of $7,500 each. One pay and display machine (coin only) has been budgeted for replacement in 2023. 4.3 Coin -operated machines encounter frequent mechanical issues, and maintenance costs are not insignificant. Malfunctioning machines also detract from the ability to generate revenue and negatively affect the image of the Municipality while providing constant enforcement challenges for Municipal Law Enforcement. 4.4 It is proposed that the five current machines be upgraded to remove coin payment and to accept credit card or debit card payments instead. The estimated cost of these upgrades for all five meters is $17,500. 4.5 To be adapted to accept credit and debit card payments, an additional fee is required to allow price adjustments, report revenue collected, and monitor utilization on our five pay and display machines. This would result in an overall cost increase of $155 per month. 4.6 If approved by Council, Staff would work to have these upgrades completed as soon as possible. 4.7 As an additional payment option, the mobile parking payment application will be available for use in the downtown parking lots on the same timetable as described above for on -street parking. Page 275 Municipality of Clarington Report LGS-023-23 5. Waterfront Parking Page 5 5.1 Council Resolution #GG-023-22, directed Staff to report back the possibility of installing paid parking meters at the municipal waterfront parking lots. Given the earlier recommendation to eliminate parking meters in downtown Bowmanville, Staff do not consider parking meters to be the optimal solution. If Council wishes to pursue paid parking at these locations, it is recommended that the mobile parking payment application be used, as outlined in this report. 5.2 With the onset of the digital parking payment application, it is entirely feasible to implement paid parking in areas where infrastructure limitations have formerly presented a barrier. With technology now available to provide a solution, the pertinent issue for Council to consider is whether parking fees are desirable at areas outside of downtown Bowmanville, such as recreational waterfront parks. 5.3 Revenue is generated from paid parking both in the form of parking fees, and fines levied for parking without a permit. In addition to the obvious benefit of generating revenue for the Municipality to offset the expenses associated with the maintenance of waterfront parks, parking fees may also help to alleviate overcrowding issues that have resulted from the swelling popularity of these waterfront areas. 5.4 However, public reaction to the introduction of parking fees may prove to be an unpopular decision among residents and visitors. For that reason, any decision to impose fees should be carefully considered. 5.5 Clarington has seven waterfront park areas used recreationally by residents and visitors. The parking accommodations in each area are at different stages of improvement. 5.6 Bond Head Park and Port Darlington East Beach Park are currently the only waterfront locations with developed paved parking lots and designated parking spaces. These developed areas are currently the only practical locations to impose parking fees. 5.7 There may be future potential to introduce paid parking at the Glen Parkette, Port of Newcastle Park, Port Darlington West Beach Park, Bowmanville Leash -Free Dog Park/Bowmanville Harbour Conservation Area, and Courtice Waterfront when these areas have been improved. 5.8 Utilization of the mobile parking payment application would be efficient and economical for both implementation and long-term administration and maintenance. Signage would be the only cost associated with collecting parking fees in the waterfront locations, at an estimated cost $150 per sign (20-30 signs initially) plus approximately $3,750 for initial installation. Page 276 Municipality of Clarington Report LGS-023-23 Page 6 5.9 This approach would align with the Municipality's broader payment modernization initiative, as well as the parking payment trends being seen in areas of other municipalities including Ajax; Pickering; Cobourg; Saint John, New Brunswick; and Red Deer, Alberta. 5.10 If parking fees were to be imposed at Bond Head Park and/or Port Darlington East Beach Park, additional parking restrictions would be recommended for the surrounding streets and side streets to ensure that it is not advantageous for individuals to park outside of the paid parking areas to avoid payment of the parking fee. 5.11 Appropriate fees for parking would be required to be established through amendments to the Traffic By-law. To stay consistent with current parking fees in downtown Bowmanville, Staff would recommend a fee of $1.00 per hour, but with a higher daily maximum of $10.00. 5.12 Given the mainly seasonal use of these waterfront areas, it would be recommended that fees be imposed for the period of May 1 - October 1 and between the hours of 5:00 a.m. — 11:00 p.m. 5.13 Municipalities that operate cashless payments at waterfront and recreational parking areas are Ajax, Pickering, Uxbridge, Ramara, Oro-Medonte, and Tobermory. Apart from Coburg, all municipalities provide local residents free parking in waterfront areas. Various approaches are utilized for issuing parking passes to residents and may be labour-intensive. 6. Financial Considerations Cost Avoidance 6.1 Savings of approximately $7,000 per year in maintenance costs would be achieved by the elimination of the single-space parking meters. 6.2 Over the next five years, approximately $70,000 of costs can be avoided by eliminating the need for replacement of the existing parking meters. 6.3 A coin counter and pay -and -display machine have been budgeted for a total of $15,000 in 2023. A second machine will be required for replacement in the next two years at approximately $7,500. These costs can all be avoided by the adoption of the recommendations in this report. 6.4 In total, approximately $127,500 in costs would be avoided over the next 5 years if the recommendations contained in this report are approved. Page 277 Municipality of Clarington Page 7 Report LGS-023-23 Expenses 6.5 It is anticipated that the work to physically remove the single-space parking meters will be performed by Staff in the Public Works Department, resulting in minimal cost. 6.6 The upgrades to the pay -and -display machines will cost approximately $17,500 and will be funded from the existing budget. 6.7 There are minimal costs associated with the mobile parking payment application. Transaction fees to use the services are minimal and are charges directly to the end user. For example, the user is charged $0.20 per transaction when payment is initiated using the HotSpot mobile application. 6.8 There is a credit card processing fee of 2.99% on all parking payments and which cost is borne by the Municipality. 6.9 There is a cost to the Municipality of $150.00 for each additional sign that may be needed to inform the public about the mobile parking payment application. Productivity Savings 6.10 Approximately five hours per week of MLE Officer time is currently dedicated to the collection of coins and performing maintenance on parking meters. Two MLE Officers are required to spend approximately three hours per week counting the coin collected. This represents approximately 572 hours per year of MLE Officer time that can be redirected to more meaningful enforcement activities. 6.11 Staff in the Public Works Department are also routinely called upon to assist with the maintenance of the meters. Approximately 140 hours per year are spent between two Light Equipment Operator II's performing this maintenance. Additional productivity would be seen in the winter during snow removal from the sidewalks, as meters would no longer be an obstacle. 7. Communications and Engagement Considerations 7.1 Upon approval by Council, MLE Staff will work together with the Communications Division to develop a comprehensive communication plan to generate awareness of the new mobile parking payment application and the elimination of coin payments. 7.2 Staff have connected with the Bowmanville BIA to communicate the changes in advance to ensure they are educated and informed. The MLE Manager will be attending a further meeting of the BIA to provide a demonstration of the mobile parking payment application. Page 278 Municipality of Clarington Report LGS-023-23 Page 8 7.3 As mentioned above, there will be a brief transition during which parking payments will be accepted by either the mobile parking payment application or by coins. The communications plan will provide a clear indication that all coin payments for on -street parking will be eliminated with the removal of the parking meters anticipated for October 2023. 8. Concurrence This report has been reviewed by the Deputy CAO/Treasurer who concurs with the recommendations. 9. Conclusion It is respectfully recommended that Council approve the staff recommendations contained within this report. Staff Contact: Duncan Anderson, Manager Municipal Law Enforcement, danderson@clarington.net Attachments: Attachment 1 —Traffic By-law Amendments The following interested parties will be notified of Council's decision: Bowmanville BIA Page 279 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON ICYAW-1VITAKIYAdr Being a by-law to amend the Traffic Bylaw 2014-059 WHEREAS the Council of The Corporation of the Municipality of Clarington deems it desirable to amend Traffic By-law 2014-059. NOW THEREFORE be it enacted: 1. Section 1 of By-law 2014-059 is amended by adding the following definition: "parking control device" means any device or technology implemented for the purpose of controlling paid parking or stopping of any vehicle. 2. Sections 25 and 26, of By-law 2014-059 are amended by deleting the words "parking meter" and replacing them with the words "parking control device". 3. Section 28 of By-law 2014-059 is deleted and replaced with: In any location where paid parking is in effect in the Municipality, no person shall park any vehicle in a parking space unless they have paid the fees in accordance with Schedule 5 or Schedule 6 of this By-law. 4. Subsection 34 of By-law 2014-059 is deleted and replaced with: No person shall park a vehicle or permit a vehicle to remain parked in a designated paid parking space that has been signed to indicate that it is not to be used. 5. Sections 27, 29, 30, 31, and 32 of By-law 2014-059 are deleted. 6. Schedule 5 of By-law 2014-059 is renamed "Paid Parking Zones on Highways". 7. Schedule 6 of By-law 2014-059 is renamed "Paid Parking Lots". 8. This by-law comes into effect on the day it is passed. PASSED this XX day of XX, 2023. Adrian Foster, Mayor June Gallagher, Municipal Clerk Page 280 Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Joint Committees Date of Meeting: June 19, 2023 Report Number: FSD-028-23 Submitted By: Trevor Pinn, Deputy CAO/Treasurer Reviewed By: Mary -Anne Dempster, CAO Resolution#: File Number: By-law Number: Report Subject: Regional Physician Recruitment Request Recommendations: 1. That Report FSD-028-23, and any related delegations or communication items, be received; 2. That Council approves the use of $20,000 from the Economic Development Reserve Fund, as budgeted in the 2023 budget, to be sent to the Region of Durham for physician recruitment; and 3. That all interested parties listed in Report FSD-028-23, and any delegations be advised of Council's decision. Page 281 Municipality of Clarington Report FSD-028-23 Report Overview Page 2 Data suggest that approximately 230,000 Durham residents do not have a family physician practicing in Durham Region, with approximately 44,000 without a family physician at all. In recognition of the family physician shortage, Council approved $100,000 in 2023 for Physician Recruitment, pending a report back from Staff on a program prior to releasing funding. Staff at the Region of Durham, local municipalities, Lakeridge Health and Queens University have met to discuss a partnership for physician recruitment leveraging a new family - medicine program that will launch September 2023 at the Queen's Campus at Lakeridge Health. The program will bring 20 new students each year for a six -year family physician program. Staff are proposing a collaborative recruitment approach to retain these students who will spend the next six years of their lives within Durham to become local family physicians. The financial contribution of $20,000 in 2023 is below the approved limit of $100,000 and Staff are supportive of a collaborative approach for this regional issue. 1. Background 1.1 At the January 30, 2023 Special General Government Committee meeting, Committee heard a delegation from Dr. Tony Stone regarding a Clarington Board of Trade request for funding to support local physician recruitment. 1.2 The CBOT request was for $500,000 over a five-year period. At the February 13, 2023, Council meeting, Council passed resolution C-027-23 amending the budget "...to provide $100,000 for Physician Recruitment funded by the Economic Development Reserve Fund; and that Staff report to Council on the framework, goals, objectives and processes for this recruitment prior to any funding being provided." 1.3 Staff from Financial Services and Planning and Infrastructure Services attended a meeting on April 21, 2023, with Dr. Stone and other family medicine leaders from Lakeridge and the Province. At this meeting, staff were made aware of a new program between Queens University and Lakeridge Health to bring in 20 students per year into a family medicine program located at a campus in Durham Region. 1.4 On May 17, 2023, Staff received a request, Attachment #1, from the Region of Durham Economic Development & Tourism Team requesting financial support for a two-part Region -wide physician recruitment strategy. Page 282 Municipality of Clarington Page 3 Report FSD-028-23 2. Regional Physician Recruitment Request 2.1 The Region has proposed a two-part project for the recruitment of physicians to Durham Region in partnership with the local municipalities, Queens University, Lakeridge Health and a regional group of family physicians. Attachment #2 to this report summarizes the project. 2.2 Part 1 includes the delivery of welcome and settlement services for one year to 38 medical students and family medicine resident trainees enrolled in the Queen's— Lakeridge program. These services are aimed to create lasting bonds and ties with the local community to retain these students after their program in the Durham Region as practicing family physicians. 2.3 Part 2 is a collaboration between the Region, local municipalities and other community partners to draft a comprehensive plan to create a permanent family physician recruitment program. This report will recommend best practices, structures and funding requirements for the future. 2.4 The $215,000 cost for the program is being shared by each municipality in the region as follows: 6 Municipality Region of Durham Ajax, Clarington, Oshawa, Pickering, Whitby Brock, Scugog, Uxbridge 20,000 3,000 2.5 The request from the Region brings all the municipalities together to provide joint recruitment recognizing that family physicians serve patients that cross borders and that the lack of physicians currently impacts all municipalities. The Region is providing 49.3% of the funding for this project. 2.6 This request would utilize the funding approved during the budget, leaving $80,000 available for local recruitment or future recruitment initiatives. By leveraging the partnership with all municipalities, the Municipality is able to reduce its cost. Page 283 Municipality of Clarington Report FSD-028-23 Page 4 2.7 Staff have been informed that one of the training locations is Bowmanville which provides a built-in recruitment advantage for Clarington as the students will be used to the facilities, local amenities and community from their training. 2.8 In discussion with the Director of Planning and Infrastructure Services, it has been determined that future reports and the carriage of this project will reside in the Economic Development Division. The existing relationship with CBOT and the Region of Durham's Economic Development and Tourism team will be leveraged for the collaboration on this project. 3. Financial Considerations 3.1 Staff have confirmed with CBOT that this request is not in addition to the 2023 Budget request but rather leverages a partnership between the local municipalities for a regional approach. 3.2 Part of the work will facilitate the creation of a funding model for physician recruitment; at that point, funding needs will be brought back to Council to determine ongoing support. 3.3 The funding is available, and this report fulfills the request of Council to report back with a framework/plan prior to providing funding. Additional use of the remaining $80,000 would be subject to a future report to Council indicating the business plan, processes and priorities for the use of the funds. 4. Concurrence This report has been reviewed by the Director of Planning and Infrastructure Services, who concurs with the recommendations. 5. Conclusion It is respectfully recommended that support the work of the Region of Durham for a regional physician recruitment strategy and provide $20,000 to the Region for this project. Staff Contact: Andrew Poray, 905-623-3379 x2424 or aporay@clarington.net. Attachments: Attachment 1 — Letter from CBOT to the Region of Durham dated May 12, 2023 Attachment 2 — PowerPoint presentation regarding the Physician Recruitment Project Page 284 Municipality of Clarington Report FSD-028-23 Interested Parties: The following interested parties will be notified of Council's decision: - Region of Durham and Area Municipalities - Clarington Board of Trade Page 5 Page 285 Attachment 1 to Report FSD-028-23 May 12, 2023 Mr. Simon Gill Director, Economic Development, Tourism, Invest Durham Re: Proposal for Durham Physician Recruitment Program Development and services. Executive Summa This proposal responds to a recent request from Lakeridge Health and from regional medical leadership for services related to the retention and attraction of family physicians. Services proposed through this engagement would consist of two distinct scopes of work: 1. Provision of services for a 12-month period to welcome and settle new medical trainees to Durham Region who are enrolled in the Queen's — Lakeridge Health MD Family Physician, training programs, including assistance in finding housing, schools for children, jobs for spouses, welcome dinner(s), and more generally, activities to begin creating bonds between the medical trainees and the Durham community. 2. The creation of a plan to establish a Family Physician Recruitment & Retention Program. This will consist of partner outreach, research, and a final report. Outreach will include engagement and consultation with the academic, business, and municipal sector, and with the physician community. The report will outline a Plan containing: • A jurisdictional scan of recruitment program best practices in Ontario • Regulatory context • Consideration of the various possible objectives, including without limitation: delivery of services to medical trainees to retain them post -graduation; retention of practicing family physicians; attraction of family physicians from outside Durham Region; and a recommendation for objectives. • Consideration of the various services that could be delivered through this initiative, including without limitation: marketing, outreach, and promotion; direct recruitment; settlement services; local industry support (e.g., support for creating comprehensive practices); succession planning support; data analysis and research; financial incentives and inducements; and a recommendation on services. • Recommended governance and structure options; composition of a board or advisory committee • Recommended program resourcing requirements (including staffing, annual operating, and capital) The cost of scope #1 is $175,000 and the cost of scope #2 is $40,000. 1 https:Hmeds.gueensu.ca/academics/queens-lakeridge-health-md-family-medicine-program 1 Page 286 Durham Region Physician Recruitment - Background "There is a crisis in family medicine and in the delivery of comprehensive primary care which has left over 4.6M Canadians without a family doctor, and with many people unable to access timely care. The evidence is clear that patients who have a family doctor have better health outcomes and live longer. The best health systems in the world are those that invest in primary care as the foundation of the health care system and include family doctors as key members of health care teams."' The Ontario College of Family Physicians notes that "new research from INSPIRE Primary Health Care was conducted to include data between March 2020 and March 2022. The data shows that nearly 15 per cent the population is now without access to a regular family doctor. While the shortage is impacting people across the province, those who are vulnerable, including newcomers, and those with the lowest incomes are even less likely to have a family doctor." 3 Family physicians are often the first point of contact for people seeking healthcare services. It is estimated that well over 2 million encounters occur between Durham residents and their family physicians every year. This includes patient office visits, urgent care clinic visits, and MD visits to long term care, retirement homes, and home visits for palliative care services just to name a few. With the recent and anticipated rapid population growth in Durham, and most of Durham's Family Physicians having full patient rosters, the current supply of family physicians in Durham is unable to meet the primary care needs of this increasing population. Preliminary data in Durham suggests that the family physician shortage is being felt acutely here. There are approximately 366 family physicians in Durham Region who deliver comprehensive primary care services. Based on an average Ontario family physician patient roster of 1,380, and a regional population of 738,710, it may be estimated that there are up to 230,000 Durham residents without a family doctor practicing in Durham, and recent research suggests that an estimated 44,000 of these Durham residents have no regular family physician at a114. It is worth noting that each year, over 1,500 babies born in Durham Region are discharged without a primary care physician (Lakeridge Health data). And in many walk-in clinics across Durham, 50-60% of patient visits are from Durham residents who require care but do not have a local family physician — contributing to long wait times for urgent care. With effective collaboration among members of the sector and community, these issues can begin to be z Canadian Medical Forum July 2022 https://www.afmc.ca/wp-content/uploads/2022/10/220705 CMF-Call-to-Action Comprehensive - Prima ry- Health-Care.pdf 3 Ontario College of Family Physicians February 2023 https://www.ontariofamilyphysicians.ca/news-features/news/^287-More-Than-2-2- Million-Ontarians-Left-Without-a-Family-Doctor 4 Estimated 44K in Durham have no family physician: Report Durhamregion.com May 8, 2023 https://www.durhamregion.com/news/estimated-44k-in-durham-have-no-family-physician-report/article a326c9fd-e290-5248-9f36- afaff9f62254.html 2 Page 287 addressed and access to care can be improved —particularly for marginalized populations, newer residents of Durham, and those who must travel long distances to see their current family physician. The attraction of Family Physicians is not new to the Durham community. There have been significant efforts and dedicated resources in support of physician recruitment for decades at the area municipal level. However, today we need a dedicated resource person and committee structure to oversee this much needed service focused on the entire Durham Regional geography. The Durham community will be best served taking a regional approach and leveraging the experience and expertise that exists today. The Clarington Board of Trade (CBOT) partnered with local stakeholders to execute a very successful physician recruitment program from 2007 to 2017. Over the duration of this program many partnerships were developed, and key strategies were implemented. Partnering physicians contributed with increased focus on teaching both medical students and medical residents in their practices. The Municipality invested in financial support and the business community supported in many ways from donations to employment support for partners. Although the formal programming was rested in 2017, the CBOT remained engaged and supportive of the efforts to support superior healthcare in our community. As active participants on the Clarington Advisory Panel for Bowmanville Hospital and a member of the Lakeridge Health Master Plan Steering Committee the team at the CBOT remains passionate, engaged, and eager to take this critical initiative to a next level. Most recently Sheila Hall, Executive Director at CBOT actively participated on the Community Advisory Committee for the New Lakeridge/Queens program to bring 20 focused trainees to our front door annually in Durham starting in 2023. This document clearly outlines the urgency of being ready in the next month or so to grasp all opportunities for trainees in our community. CBOT is positioned to jump in with experience and expertise. In addition, with the deep partnerships and understanding of the need to scale to a regional approach, CBOT is eager to assign resources to develop a collaborative plan forward for a sustainable and success program for years to come. Family Physician Recruitment Opportunities - Profile of learners from Queen's University Faculty of Medicine: The existing Queen's — Bowmanville — Oshawa — Lakeridge (QBOL) Family Medicine residency program has been in place in Durham since 2013. These residents are based in Durham for their 2-year training program. It graduates 9 residents every year. The New Queen's - Lakeridge MD Family Medicine training program (medical school plus family medicine residency) will take its first 20 trainees this August. 3 Page 288 This novel program will select 20 new trainees every year — trainees who will complete 4 years of medical school and then 2 years of family medicine residency. They will be based here at the Queen's Regional Medical Campus in Durham. • New learners in this new program will do their full 6-years of training in the Durham region. • Under this new program, the intention is that the students admitted into this program have a passion and desire to work in family medicine when they are finished their training (medical school + residency) • Note: the 4 years are in medical school where students are provided no funding while learning in the community. Our success will be linked to the community surrounding all our trainees with a supportive environment and help them get established in the community. Academic Year Med Studen t yr. 1 Med Studen t yr. 2 Med student yr. 3 Med student yr. 4 Fam Med resident yr. 1 (both programs) Fam Med resident yr. 2 (both programs) Total Queen's FM trainees in Durham 23-24 20 9 9 38 24-25 20 20 9 9 58 25-26 20 20 20 9 9 78 26-27 20 20 20 20 9 9 98 27-28 20 20 20 20 9 + 20 9 118 28-29 20 20 20 20 9 + 20 9 + 20 138 Note: some of these graduates may choose to do an additional year of training in an area of special interest after residency (e.g., Emergency Medicine, Hospitalist, etc.) Additional sources of new family physicians There are other cohorts for consideration of recruitment efforts: - The Rural Ontario Medical Program (ROMP) for underserviced Rural communities also sends family medicine residents from Queen's and from the University of Toronto to Clarington, Uxbridge and Scugog for 8-week rotations. Port Perry also takes 2 second year residents from University of Toronto every year for a full year of rural family medicine - There are many other family medicine graduates from across Ontario who may be interested in a career in Durham. - There are many Canadians training internationally in family medicine. An important number of these are hoping to return to Canada for a career in medicine. The focus should be on international family medicine graduates from the USA, UK, Ireland, New Zealand, and Australia as they already meet Ontario licensing requirements. 4 Page 289 Although the profiles are different for these groups, one thing is constant. They are all potential new doctors for our community. With various tracks and continuous inflow of potential, Durham needs to look at immediate and long-term solutions for the attraction of Primary Care Physicians. Physician Attraction Landscape and Options In the past there have been formalized community -focused efforts to attract new Family Physicians in some Durham communities including Clarington, Oshawa, and Whitby. Based on cursory research, at least 10 municipalities across Ontario have staffed and funded programs delivering physician attraction programming, and at least 10 municipalities across Ontario offer some form of financial incentive to attract and/or retain family physicians. These activities occur in all tiers of local government (upper, lower, and single), and in some cases, through agencies external to local government. Based on discussions with local medical leaders, Lakeridge, and the province, it was recommended that the most effective approach for Durham would be a single cohesive approach covering the entire regional geography. The types of services and programming delivered elsewhere in Ontario include marketing, outreach, and promotion; direct recruitment; settlement services; local industry support (e.g., support for creating comprehensive practices); succession planning support; data analysis and research; and financial incentives and inducements. Scope of Work #1: Responding to the Immediate Opportunity In May 2023, 20 medical students that have already identified Primary (Family) medicine as their path will be accepting offers to start and finish their medical training in Durham through the new Lakeridge Health/Queens project. Their learning will begin in August 2023 and therefore will be looking to be settled in Durham mid -Summer 2023. Further, there are already presently nine medical trainees entering their final year (July 2023), and eight medical trainees graduating imminently (June 30th, 2023). The Clarington Board of Trade was a key partner in delivering the Physician Recruitment efforts for the Municipality of Clarington between the years of 2007 to 2017. This program produced great success recruiting what averages out to 2.5 new doctors for Clarington per year. This proposed scope of work responds to the immediate opportunity to create strong first impressions with new medical trainees entering the Region through the new program and retain the medical trainees that are presently graduating from the existing program. 5 Page 290 The following services will be provided: • Provision of assistance in finding housing, including liaising with the Durham Region Association of Realtors (DRAR), compiling a list of suitable options representing a mix of appropriate housing options for trainees and graduates, and assisting medical trainees in accessing realtor services • Leveraging the settlement resources of Durham Region's LIP (Local Immigration Partnership) to provide settlement services for these new residents, including finding schools for children, services providers such as accountants, etc. • Working with partners to assist the spouses of medical trainees in finding jobs locally. • Organizing and hosting a welcome dinner for all medical trainees (include political leadership, healthcare partners, other emergency medical providers such as paramedics, police, fire), and subsequently, taking medical trainees out for lunch or dinner individually to express that Durham is a welcoming community. • Having one-on-one meetings to identify individual support requirements: overview and education of the Region. • Assignment of a point person that they can count on to help them navigate Durham as their new home, with at minimum - a quarterly check -in to ensure support is appropriate and meeting their needs. • Undertake activities to begin creating strong and lasting bonds between the medical trainees and the community including negotiating with local tourism industries to provide gift certificates or discounts, organizing fun activities for medical trainees such as trail bicycling in Uxbridge or indoor rock climbing in Bowmanville; liaise with Durham Tourism and other municipal tourism teams to provide steady support in creating connections with Durham's quality of place assets. Term: These services will be provided for a period of 12 months beginning on the date of this engagement. Price: $175,000 Breakdown: • 0.6 Full Time Equivalent staff time for 12 months - $81,900 • Welcome Dinner for 39 trainees and 25 dignitaries - $16,000 • Expenses - $5,000 • Settlement & Building Connections to the Community - $72,100 Invoiced Quarterly. 'Settlement & Building Connections to the Community' to be a reimbursement of actual program expenditures up to the maximum indicated above. C Page 291 Scope of Work #2: Partner Engagement and Creating a Plan for a Physician Retention Recruitment & Incentive Program The shortage of Family doctors in not unique to Durham, and the attraction and retention of family physicians is very competitive across the province and country. Addressing this acute need for family physicians and ensuring the competitiveness of Durham in attracting and retaining doctors, a professional and coordinated effort will be necessary, consisting of dedicated resources, and key objectives and performance indicators. Key Partners • Region of Durham • Local Municipalities • Lakeridge Health • Local family physicians • Local Business • Durham Region Real Estate Board / Association of Realtors • Durham Boards of Trades/Chambers of Commerce • School Boards • Local Post -Secondary Institutions • Queen's University This scope of work includes the research, engagement, and evaluation of best practices and the unique needs of Durham Region, necessary to create a plan for family physician attraction and retention. The services to be delivered under this scope include the following: • Primary research and outreach to the Key Partners listed above regarding the unique needs of Durham Region • A report containing the following information. o Best estimates of actual number of additional family doctors needed in Durham. (Consideration should be given to creating a registry for Durham residents seeking a family doctor.) o A jurisdictional scan of physician attraction / retention practices at the municipal level across Ontario o The Regulatory context o An evaluation (advantages/disadvantages) of the various possible objectives of a program, and recommendation for Durham, including without limitation: ■ delivery of services to medical trainees to retain them post -graduation. ■ retention of practicing family physicians; and ■ attraction of family physicians from outside Durham Region. 7 Page 292 o An evaluation (advantages/disadvantages) of the various services/programming that could be delivered through this initiative, and a recommendation for Durham, including without limitation: ■ marketing, outreach, and promotion (including a website). ■ direct recruitment. ■ settlement services. ■ local industry support (e.g., support for creating comprehensive practices). ■ succession planning support. ■ data analysis and research; and ■ financial incentives and inducements (if financial incentives are recommended, include a clear process, eligibility criteria, and proposed guidelines for application) o Resourcing requirements (including staffing, annual operating funding, and capital) recommendation, including an indicative one-year program budget. o An evaluation of governance and structure options (including which organization and/or department would be best suited to house this new program); funding sources, composition of a board or advisory committee; recommendation for Durham Region o Program success metrics, target outcomes Term: The final report will be delivered to the Region of Durham by September 22, 2023. Price: $40,000.00 Invoiced 50% upon contract award, and 50% upon project completion. Sheila Hall, Executive Director Clarington Board of Trade On Behalf of the consortium of regional medicine leadership. Page 293 Attachment 1 to Report FSD-028-23 \� Invest Durham Physician -• •'tment Proposed Scope for 2023 and Request for One -Time Financial Contributions May 16, 2023 .o � Issue Identification Doctor Shortage • Between 45,000 — 110,000 Durham Residents have no comprehensive -care family doctor • 1,500 newborns are discharged annually without a primary care physician Impacts • Resident health & wellbeing • Emergency and urgent care overload / wait times • Economic: talent attraction, business investment attraction Page 295 \ Invest S Durham shortages acros s unique to Ontario. Durham; there are Many Ontario municipalities are actively recruiting doctors and even paying incentives, putting Durham at a competitive disadvantage. Invest S Durham .o � Opportunity Immediate • Queen's—Lakeridge Family Medicine Program: up to 80 post -grad students and 58 trainees in residency in Durham • Building lasting bonds between trainees and the community will improve the likelihood they choose to stay and practice here Long -Term Best practices from other municipalities include: • Staffed family doctor recruitment program • Strengthen local comprehensive care Some other municipalities offer incentives Page 297 \ Invest S Durham .o � Immediate Opportunity #1 Support / retain 20 new post -grads and 18 family medicine residents • Assist in securing housing • Provide settlement services (schools for children, service providers, connect to community resources) • Assist is securing jobs for spouses • Welcome dinner / reception • Regular one-on-one meetings for individualized support • Create lasting bonds with the community through activities / tourism industries • $175k for 1 year Page 298 \ Invest S Durham .o � Immediate Opportunity #2 Collaborate to Create a Plan for a Family Physician Recruitment Program • Jurisdictional Scan • Create Objectives • Define Activities: o Marketing, outreach, promotion (website) o Direct recruitment o Settlement services o Strengthening local practices o Succession planning o Financial incentives • Staffing / Budget • Governance / Structure / Funding Model • $40k to create the plan y Page 299 \ Invest S Durham .o � Recommendation / Request • Jointly fund scopes 1 & 2 of the attached proposal with the following one-time financial contributions: o $106k Region of Durham o $20k ea. Ajax, Clarington, Oshawa, Pickering, Whitby o $3k ea. Brock, Scugog, Uxbridge • Contract Sheila Hall /CBOT (on behalf of the consortium of regional family medicine leadership) to deliver these scopes for the whole Region of Durham. • It is expected that this plan would recommend creating Physician Recruitment Program with a Regional mandc- Through collaboration, we will all inform the mandate, structure, funding model, and governance. Page 300 Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Joint Committees Date of Meeting: June 19, 2023 Report Number: FSD-029-23 Submitted By: Trevor Pinn, Deputy CAO/Treasurer Reviewed By: Mary -Anne Dempster, CAO Resolution#: File Number: By-law Number: Report Subject: User Fee Revenue Policy and User Fee By-law Recommendations: 1. That Report FSD-029-23, and any related delegations or communication items, be received; 2. That the Policy attached to Report FSD-029-23, as attachment 1, be approved; 3. That the By-law attached to Report FSD-029-23, as attachment 2, be approved; 4. That Staff be directed to bring back the by-laws included in section 3.5 of Report FSD-029-23 to reference fees to the User Fee By-law at a future meeting; and 5. That all interested parties listed in Report FSD-029-23, and any delegations be advised of Council's decision. Page 301 Municipality of Clarington Report FSD-029-23 Report Overview Page 2 The Municipality of Clarington is restricted in the ability to generate revenues to property taxes, user fees, grants and investment income. This report brings a draft User Fee Revenue Policy and an updated User Fee By-law to Council for consideration. The User Fee Revenue Policy formalizes processes on the development of user fees and sets targets for cost recovery based on the type of service that is being provided. The recovery could vary from 0% to 100% depending on the general public benefit versus the individual benefit to the user of the service. The updated User Fee By-law starts the process of consolidating user fees into one by-law to ensure an efficient way to update rates to reflect inflationary factors as well as consistency on when fees will change. It is recommended that an annual inflationary factor be included based on July CPI to be effective for January 1 of each year. This ensures one date where fees change and that fees are more reflective of the cost to provide services. 1. Background 1.1 The Municipal Act, 2001 allows the Municipality to charge user fees for services which are provided to individuals. The user fee must be provided for in a by-law approved by Council. 1.2 Increasingly, municipalities are reviewing their user fee process to consider the appropriateness of the amount of costs that should be borne by the property tax levy versus the amount that the benefiting party should be paying for. 1.3 As Municipalities are limited in the types of revenue that they may generate (property taxes, user fees, investment income), it is important to ensure that user fees are properly considered when the service being provided benefits individuals. 2. Draft User Fee Revenue Policy Government Finance Officers Association (GFOA) Best Practice 2.1 The GFOA has established a best practice for "Establishing Government Charges and Fees" which was adopted in 2014. One of the best practices is the adoption of formal policies regarding charges and fees. The policy should 2.1.1. Identify the factors (affordability, pricing history, inflation, service delibery alternatives, and available efficiencies) to be taken into account when pricing goods and services; Page 302 Municipality of Clarington Report FSD-029-23 Page 3 2.1.2. State whether the jurisdiction intends to recover the full cost of providing goods and services. Set forth under what circumstances the jurisdiction might set a charge or fee at more or less than 100 percent of full cost. If the full cost of a good or service is not recovered, then an explanation of the government's rationale for this deviation should be provided; 2.1.3. Outline the considerations that might influence the governmental pricing decisions. Such policy concerns might include the need to regulate demand, the desire to subsidize a certain product, competition with private businesses, economic development, elasticity of demand for the particular service, and visibility of the service to the community; 2.1.4. The specifics of how the fees and charges will be levied and collected should be a consideration when developing policy. 2.2 The attached policy is designed to meet the best practice of having a formal policy on user fees. Past practice has followed these principles; however, a formal policy has not been in place. 2.3 Municipalities should calculate the full cost of providing a service in order to provide a basis for setting the charge or fee. The Municipality already does this for building inspection and planning services. A review of the cost will be completed for other services. 2.4 Municipalities should review and update charges and fees periodically based on factors such as the impact of inflation, other cost increases, adequacy of cost recovery, use of services, and the competitiveness of current rates. While in many cases this was being done, the policy formalizes this review process and recommends an automatic annual inflationary increase. 2.5 User fees should utilize long-term forecasting to ensure that charges and fees anticipate future costs in providing the service. The Municipality is developing processes and resources to ensure that this long-term forecast can occur. 2.6 Municipalities should provide information on charges and user fees to the public. The draft by-law consolidates many different fees from by-laws into a single source. Staff are recommending that future user fees be incorporated in the central "User Fee By-law" to ensure that the public has to go to one place to determine what the fees are. The list of fees will be kept up to date on the Municipality's website. Draft User Fee Revenue Policy 2.7 Attachment #1 is the proposed Draft User Fee Revenue Policy. This policy has been created using other Ontario municipalities as a baseline policy. Page 303 Municipality of Clarington Report FSD-029-23 Page 4 2.8 The by-law is a framework for a consistent approach to the establishment and development of user fees across the Municipality. The policy will ensure consistency, transparency and accountability in the development and management of user fees. 2.9 The by-law does not apply to fines, penalties, or interest charges which are not fees for service. Development Charges, Community Benefits Charges and Parkland Dedication Fees are also not fees for service and would not be included in this policy, or the applicable by-law. 2.10 The goal of the policy and the development of user fees would be to be determine the full cost of the services provided to individuals, groups or businesses that go beyond the general public benefit and ensure that those individuals are paying for those costs. 2.11 The policy identifies that there are four types of funding categories for services: 1) General Service/Fully Tax Supported, 2) Mixed Service/Partial Tax Support (General), 3) Mixed Service/Partial Tax Support (primarily individual) and 4) Private Service/Non- Tax Supported. 2.12 As services move from general service to private service, the amount of cost recovery from the user increases. For example, trails and pathways are a general benefit that all parties may use and provide a recreational activity for everybody, there should be no cost recovery of individual users for using a trail. An example of a private service would be the the water used by an individual at their home (this a Regional example) as it only benefits the person on that property. Partial services could include swimming lessons as there is a general benefit for individuals to become water -safe and active, however there is also a private benefit in that not everyone is benefitting from that service. 2.13 The policy states that there will be an automatic inflationary adjustment to user fees on January 1, of each year. This ensures that all fees change on the same day, which provides clarity to the public compared to fees changing throughout the year, and is efficient for staff as there is a known date for changes. 2.14 The policy is recommended for approval to ensure that there is a formalized process for determining User Fees and Council's expectations regarding cost -recovery can be taken into account when determining fees. 3. Draft User Fee By-law 3.1 Attachment #2 is the proposed Draft User Fee By-law. Schedules on the By-law have been renamed and reordered from By-law 2010-142 to reflect changes in the organizational structure. General Fees have also been moved to Schedule A rather than in the middle of the schedules. Page 304 Municipality of Clarington Report FSD-029-23 Page 5 3.2 The schedules indicates that applicable taxes are to be charged in addition to these fees. To ensure consistency in the presentation taxes are shown in addition, some schedules showed them separate and others did not. Further, if the tax rate changed the dollar value of the HST would change which could require bringing the by-law back for consideration. To be efficient, applicable taxes are not shown on the schedules to ensure that changes by the Province or Canada can be immediately reflected. 3.3 The By-law includes an ability to increase the fees annually up to an amount based on the July CPI or $5 whichever is higher. The "up to" allows for the fees not to change or to change by an amount less than CPI or $5 if the market conditions make sense for that fee. Similarly, the $5 limit allows Staff to adjust relatively small fees by an amount that makes sense although the percentage may be high. For example skating tickets may be $1.25/skate but due to minimum wage we need to increase it to $1.50/skate this amount is relatively small but would be above the CPI amount. It is not efficient to bring back the fee by-law for these relatively small adjustments. 3.4 There are 16 by-laws that Staff are aware of that had fees mentioned in the body of the by-law or as a schedule to the by-law that were not identified in the previous User Fee By-law. The draft by-law identifies these by-laws with a cross-reference and utilizes the fee that is identified in that by-law. Staff are recommending that these by-laws, and future by-laws that are identified, be amended to remove the fee reference in that by-law to reduce confusion and ensure that fees are in a central by-law. 3.5 The following By-laws were included in the User Fee By-law and will require amendment in the future to ensure that there is no contradiction between the User Fee By-law and the applicable by-laws: 93-144 Snow Clearing By-law 2003-127 Body Rub Parlour By-law 2005-206 Peddler's License By-law 2006-116 Auctioneers License By-law 2007-063 Adult Entertainment By-law Page 305 Municipality of Clarington Report FSD-029-23 ZU12-U45 I Exotic Animal t3y-law 2013-024 Responsible Pet Owners By-law 2013-025 Kennel By-law 2014-020 Special Events on Private -Property By-law 2014-021 Special Events on Municipal Highways By- law 2014-022 Road Occupancy By-law 2014-059 Traffic and Parking By-law 2015-016 Refreshment Vehicle By-law 2015-047 Fireworks By-law 2019-069 Vehicle -For -Hire By-law Page 6 3.6 Within the Community Services fees, there are several fees that indicate a change effective January 1, 2024. These fees have been identified as those that would require a change outside of CPI or the $5 limit, or they are new fees. The reason for the change may be alignment with the cost structure, significant change in cost structure, or market conditions. Other fees are expected to increase on January 1, 2024, by the CPI (which is expected to be about 3%). Page 306 Municipality of Clarington Report FSD-029-23 Page 7 3.7 The July 1, 2023, effective date has been chosen to ensure that fees for Planning and Infrastructure Services can be updated as per Council's direction in 2022. We are still waiting on the fee study which should be complete in the summer of 2023 with potential increases to be brought back to Council for adoption in the fall of 2023; however, in the meantime a 3% increase will take effect on July 1, 2023. 3.8 Two new fees in Public Works were included for a commemorative tree and bench program which will be rolled out later this year. 3.9 Financial Services added additional fees for legal title searches and farm debt notices which are fees incurred in preparation of the tax registration process. These fees are in line with other Durham municipalities. A fee to process a refund or transfer between accounts has been added to reflect the time required to administer these transactions. 4. Financial Considerations 4.1 User Fees are one of the limited ways that municipalities have to raise funds to pay for services. The formalization of a user fee policy will provide guidance on how to set user fees for services to ensure that those benefiting directly from the service are properly supporting the costs of those services. This will shift cost recovery from the property tax levy to the user. 4.2 The User Fee By-law provides the authority to charge user fees. The use of an annual adjustment will ensure that user fees are updated regularly for inflationary pressures. Annual inflationary adjustments may be more sustainable than periodic larger adjustments that have been past practice as by-laws are not reviewed annually in all cases. 5. Concurrence This report has been reviewed by the Senior Leadership Team, who concurs with the recommendations. 6. Conclusion It is respectfully recommended that the Draft User Fee Revenue Policy and Draft User Fee By-law be approved. Staff Contact: Trevor Pinn, CPA, CA, Deputy CAO/Treasurer, 905-623-3379 ext. 2602 or tpinn@clarington.net. Attachments: Page 307 Municipality of Clarington Report FSD-029-23 Attachment 1 — Draft User Fee Revenue Policy Attachment 2 — Draft User Fee By-law Interested Parties: There are no interested parties to be notified of Council's decision. Page 8 Page 308 Attachment 1 to Report FSD-029-23 Council Policy Clar*wji If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Number: CP-00# Title: User Fee Revenue Policy Type: Financial Management Sub -type: Budget Owner: Financial Services Financial Planning Approved By: Council Approval Date: Click or tap to enter a date. Effective Date: Click or tap to enter a date. Revised Date: Click or tap to enter a date. Applicable to: All Staff, Department or Division 1. Legislative or Administrative Authority: 1.1. The Municipal Act, 2001 s.391(1) provides the Municipality with the authority to impose fees or charges on persons: 1.1.1. For services or activities provided or done by or on behalf of it; 1.1.2. For costs payable by it for services or activities provided or done by or on behalf of any other municipality or any local board; and 1.1.3. For the use of its property including property under its control. 1.2. Similarly, the Municipal Act, 2001 s.391(1.1) provides the same powers for Local Boards. 2. Purpose: 2.1. The purpose of this Policy is to provide a framework for a consistent approach for establishing and determining user fees across the Municipality. 2.2. This Policy is designed to improve consistency, transparency, efficiency and accountability in establishing and managing user fees. Page 1 of 8 Page 309 Attachment 1 to Report FSD-029-23 Council Policy ClafiWOOJI If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 2.3. This Policy promotes recovery of the full cost of services for which user fees are charged, to the extent that there is no conflict with the Municipality's policy objectives and priorities. 2.4. The Policy requires ongoing review of user fees to ensure that they are adjusted to reflect changes in the cost of delivering services, changes in service levels, relevant policy objectives and Council priorities. 3. Scope: 3.1. This Policy applies to all Municipal Programs and Local Boards. 3.2. This Policy does not apply to fines, penalties, or interest charges. 4. Definitions: 4.1. Fine is a fee charged under legislation or by-laws as a result of a party's breach of the legislation. For example, a party may be fined for parking in a prohibited area. Fines are not User Fees. 4.2. Full -Service Cost include direct and indirect costs, including all costs of operations and maintenance, overhead, and charges for the use of capital assets used to provide the service. 4.3. Interest is an amount charged on an overdue balance to the Municipality. Interest charges are not User Fees and are subject to applicable legislation. 4.4. Local Boards include Municipal boards, the Clarington Public Library Board and any committee, body or local authority established under the Municipal Act, 2001 by Council. 4.5. Market Price/Value is the price of a good or service that is based on competition in the open market. Where there is substantial, competitive demand, market price is determined using commercial practices such as competitive bidding or by reference to prevailing prices in competitive markets. In the absence of competitive demand, market price is determined by taking into account prevailing prices for Page 2of8 Page 310 Attachment 1 to Report FSD-029-23 Council Policy Clar*wji If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 products or services that are the same or similar to those provided by the Municipality. 4.6. Penalty means a fee added as a result of an action and is a result of legislation or by-law. For example, there is a penalty for a late -payment of a tax installment. Penalties are not User Fees. 4.7. Pricing Methodology means the processes or methodology used to determine the price of a user fee or charge. 4.8. Property Taxes means the tax levied by the Municipality on the value of real property. 4.9. Subsidy is the amount of the full cost of providing a service that is not recovered from user fees but is paid for by the Municipality, primarily through property tax revenues. 4.10. User Fee means a fee or charge to an individual or groups and/or businesses for the provision of a service, activity or product, or for conferring certain rights or privileges, which grant authorization or special permission to a person, or group of persons to access Municipally -owned resources (including property) or areas of activity. 4.11. User Fee Service means a service provided by the Municipality or Local Board that is funded through the collection of user fees. 5. Policy Requirements: General Policy Statement 5.1. Municipal programs and Local Boards will collect user fees to recover the full cost of services where it is determined that a service, product or the use of facilities or resources provide direct benefits to identifiable individuals, groups, or businesses beyond those that accrue to the general public. 5.2. A direct benefit is deemed to accrue and a user fee will be considered when a service, product or use of facility/resource: Page 3 of 8 Page 311 Attachment 1 to Report FSD-029-23 Council Policy Clar*wn If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 5.2.1. Enables the recipient to obtain a more immediate or substantial benefit that is distinct from or greater than that enjoyed by the general public; or 5.2.2. Is performed at the request of, or for the convenience of the recipient, and is beyond the services regularly performed for other individuals, groups of individuals, business sectors or for the general public. 5.3. User fees will be set to recover the full cost of providing the applicable service, except where Council has a approved a subsidy or exemptions; where services are based on competition in the open market; and where fee amounts are legislated by the Province of Ontario. The amount of a fee shall not exceed the Full Cost of providing the applicable service. When to Charge a User Fee 5.4. Where it is determined that a service or activity provided by the Municipality or Local Board confers a direct benefit on individuals, identifiable groups or businesses, a User Fee will be set to recover the cost of providing the service (a "User Fee Service"). User Fee Services will be fully funded through the User Fee charged for the service. 5.5. Where it is determined that a service or activity provided by the Municipality or Local Board confers a direct benefit to individuals, identifiable group, or local business but also results in benefits to the general public that service or activity will be partially funded by other sources by way of a subsidy. 5.6. Services that benefit the general public will be funded by Property Taxes. 5.7. The following table represents the guiding decision matrix in determining whether a service should be funded by User Fees, Property Taxes or a combination of both: Page 4 of 8 Page 312 Attachment 1 to Report FSD-029-23 Council Policy Clar*wji If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 .Recovery Benefits Service Ratio Guidance General Service / Fully Community General 0% to 5% (primarily Tax Supported taxes) Mixed Service / Partial Primarily the General / 5% to 50% Tax Supported Community Individual (primarily taxes) Mixed Service / Partial Primarily the Individual 50% to 95% Tax Supported Individual / General (primarily user fees) Private Service / Non -Tax Individual Individual 95% to 100% Supported benefit (primarily user fees) Full Cost Services 5.8. The Full Cost of providing each User Fee Service will be determined as the starting point for setting the User Fee, regardless of the planned fee recovery. The full cost of providing the User Fee Service will be reviewed periodically to confirm it continues to be accurate. Calculation of Full Service Costs 5.9. The Full Cost of each User Fee Service shall include the direct costs and the indirect costs, including operations, maintenance and overhead, or providing the service or activity. The capital cost for the replacement of assets utilized to provide the service or activity will also be a factor in determining the Full Cost of a service or activity. Subsidy 5.10. Where less than the full cost of providing a User Fee Service is to be collected, the cost of providing the User Fee Service has been subsidized by other revenue. The reasons why a subsidy should be Page 5 of 8 Page 313 Attachment 1 to Report FSD-029-23 Council Policy Clar*wn If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 provided for a particular User Fee Service will be detailed in a report to Council which seeks authorization for the subsidy and level of subsidy. The report will include conditions and criteria for awarding subsidies. Waivers and Exemptions 5.11. User Fees may be waived, in whole or in part, for groups of individuals or businesses based on criteria such as ability to pay, Municipal policy or other criteria. The report recommending the User Fee and the by- law establishing the fee will detail include the criteria for providing waivers or exemptions from the User Fee, and where appropriate, may include a delegation to the appropriate official to waive or rebate on a case -by -case basis in accordance with the criteria set out in the report. Annual Adjustments and Fees Review 5.12. Automatic annual inflationary adjustments to user fees will be effective January 1 of each year. 5.13. The authority to determine the annual automatic inflationary adjustment to each User Fee based on the projected rate of inflation for the upcoming year for the cost of each component of the overall cost of providing the User Fee Service for which the User Fee is charged shall be done in a manner that conforms with the Municipality's policies including the Delegation of Authority By-law. 5.14. The projected rate of inflation for each component cost will be set out included in the Municipality's annual budget and will be posted on the Municipality's website prior to December 1 each year. 5.15. User Fees will be reviewed annually as part of the Municipal budget process in order to confirm their adequacy to recover the Full Cost of the associated User Fee Service and where required, to recommend appropriate adjustments through the budget process. 5.16. A comprehensive review of all User Fees will be conducted at least once every four years to ensure they comply with the principles set out in this Policy and with current best practices. Page 6 of 8 Page 314 Attachment 1 to Report FSD-029-23 Council Policy Clar*wn If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Allocation of Revenues 5.17. Subject to legislation, revenues generated from User Fees will be used to pay for costs incurred to provide the associated User Fee Service, and where the User Fee Service is provided jointly by more than one Program or Local Board, the User Fee revenues will be allocated respectively based on the direct and indirect costs incurred; and revenues collected for the recovery of capital costs will be placed into the appropriate reserve fund for the purpose of the replacement of the associated capital asset(s). Public Consultation and Approval 5.18. With the exception of the automatic annual inflationary adjustments, where User Fees are recommended to be introduced or changed, the public will be provided with a minimum five working days notice of the recommended User Fee will be considered and will be provided an opportunity to make presentations to the committee considering the fee prior to Council approval. 5.19. User Fees for all programs will be approved by Council before the implementation of such fees. The annual inflation adjustment does not require specific Council approval. 6. Roles and Responsibilities: 6.1. Council is responsible for: 6.1.1. Authorizing all User Fees and charges for all programs prior to the implementation of the User Fee. 6.2. Chief Administrative Officer (CAO) is responsible for: 6.2.1. Ensuring that the Deputy CAO/Treasurer provides annual inflationary updates to the User Fees as required in this Policy. 6.2.2. That Directors/Managers complete areas to determine if User Fees are accordance with Municipal policies. periodic reviews of service properly identified in Page 7 of 8 Page 315 Attachment 1 to Report FSD-029-23 Council Policy Clar*wji If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 6.3. Deputy CAO / Treasurer is responsible for: 6.3.1. Ensuring the annual inflationary update is calculated and applied to the User Fees. 6.3.2. Facilitating the calculation of costs of providing service to ensure that User Fees are collecting sufficient amounts to support the service. 6.4. Directors / Managers are responsible for the following within their scope of authority: 6.4.1. Ensuring that User Fees for services charged for their programs are properly charged, collected, deposited and in general, are administered in compliance with the principles set out in this Policy. 6.5. All Staff are responsible for: 6.5.1. Ensuring that User Fees for services are charged and collected in compliance as set out in this Policy 7. Related Documents: 7.1. Fee By-law 7.2. Delegation of Authority By-law 8. Inquiries: 8.1. Deputy CAO/Treasurer 9. Revision History: Date Description of Changes Approved By Page 316 Attachment 2 to Report FSD-029-23 If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. The Corporation of the Municipality of Clarington By-law 2023-XXX Being a by-law to require the payment of fees for services. Whereas Subsection 69(1) of the Planning Act, R.S.O. 1990, c.P.12, as amended, provides that by-laws may be passed by the council of a municipality to establish a tariff of fees for the processing of applications made in respect of planning matters; and Whereas Subsection 391(1) of the Municipal Act, 2001, S.O. 2001, c.25, as amended, authorizes a municipality to impose fees or charges for services or activities provided or done by or on behalf of it. Now therefore the Council of the Municipality of Clarington enacts as follows: 1. Commencing July 1, 2023, the fees for services provided by the Municipality shall be set out in the following Schedules to this By-law: a. Schedule "A" — General Fees b. Schedule "B" — Legislative Services Fees c. Schedule "C" — Financial Services Fees d. Schedule "D" — Emergency and Fire Services Fees e. Schedule "E" — Planning and Infrastructure Services Fees f. Schedule "F" — Community Services g. Schedule "G" — Public Works Fees h. Schedule "H" — Cemetery Services Fees 2. That the Deputy CAO/Treasurer is authorized to adjust the above schedules, without amendment to this By-law, effective annually on January 1St of each year, beginning January 1, 2024, by an amount not exceeding the July over July, Ontario All -Items Consumer Price Index (CPI) or $5, whichever is higher. 3. That applicable taxes be in addition to the stated amounts in the above schedules, as amended by the Province of Ontario or Government of Canada. Page 317 Attachment 2 to Report FSD-029-23 4. Notwithstanding Section 1, the Deputy CAO/Treasurer, or designate, is authorized to waive service fees to a maximum of $50. 5. That By-law 2010-142, and any amendments thereto, be repealed. 6. That this by-law shall be effective on July 1, 2023. Passed in Open Council this XX day of June, 2023. Adrian Foster, Mayor June Gallagher, Municipal Clerk Page 318 Attachment 2 to Report FSD-029-23 By-law 2023-xxx Schedule "A" General Fees Fee Schedule Effective July 1, 2023 All fees subject to applicable taxes Photocopies $0.65 Per page (Minimum Charge) 3.00 Minimum Commissioner of Oaths (per signature) 25.00 Per signature Commissioner of Oaths 0.00 Not applicable (for Ontario "Change of Name" forms currently referred to as Form 11155E and Form 1156E) Page 319 Attachment 2 to Report FSD-029-23 By-law 2023-xxx Schedule "B" Legislative Services Fees Fee Schedule Effective July 1, 2023 All fees subject to applicable taxes Burial Permit $25.00 Civil Marriage Ceremony 275.00 Marriage Licenses 135.00 Cost to File Appeal of Property Standards Order $88.50 (50% to be refunded to Appellant following appearance before Appeal Committee. Failure to appear for the Appeal will result in forfeiture of entire fee amount) The following table is a summary of regulatory fees set by the Municipality and rules outlining the license, applicability and eligibility should be referred to the appropriate regulatory by-law: Snow Clearing By-law (93-144) Removal of Snow Administrative Charge Application • Owner's Licence • Operator's Licence • Attendant's Licence Licence • Owner's Licence • Operator's Licence • Attendant's Licence Licence Renewal • Owner's Licence • Operator's Licence • Attendant's Licence .. Unit Actual cost $50.00 1 Per removal $1,200.00 200.00 150.00 200.00 100.00 50.00 400.00 250.00 100.00 Stationary $300.00 Per year Mobile 300.00 Per year Assistant 100.00 Per vear Page 320 Owner Licence Operator Licence Attendant Licence Minor Fill Operation Permit Small Fill Operation Permit Large Fill Operation Permit Attachment 2 to Report FSD-029-23 $3,000.00 Per licence 1,000.00 Per licence 250.00 Per licence $250.00 500.00 1,000.00 Base 1.00 , Per m3 of fill Exotic Animal By-law i- Permit Application $50.00 Impound 50.00 Daily Care 15.00 Per day Third -party Daily Care Actual cost Note Note: Where a Prohibited Animal is impounded and a third -party is contracted to care for the Animal, the third -party care fee shall be charged for every day or part of a day the Animal is cared for by the third -party. Adoption — dogs (all dogs are microchipped prior $95.00 to adoption) Adoption — cats (all cats are microchipped and 130.00 altered prior to adoption unless it is too young or too small at the time of adoption, in which case the Owner is offered a rebate upon proof of altering.) Responsible•(2013-024) Licenses Dog or cat — microchipped & spayed or neutered Fee Unit $15.00 Dog or cat — spayed or neutered no microchip 25.00 Dog — unaltered 40.00 Cat — unaltered 40.00 Dog or cat — Agricultural rate (Note 1) 100.00 Annual Note 1: Rate is offered where there are more than three dogs or three cats and where owner provides proof current rabies vaccination for each, and proof of zoning. Page 321 First occurrence Attachment 2 to Report FSD-029-23 Free I Picked up within 24 hours $50.00 Otherwise Second or subsequent occurrence 75.00 Daily care fee (Note 2) L 15.00 1 Per day t Note 2: Every dog impounded is subject to an additional charge for every day or part of a day after the day the pet is brought into impoundment. First occurrence $50.00 Second or subsequent occurrence 75.00 Daily care fee (Note 2) 15.00 Per Not licensed (Note 3) See license schedule Note 2: Every dog impounded is subject to an additional charge for every day or part of a day after the day the pet is brought into impoundment. Note 3: In addition to the fees detailed above, every Owner of a dog not licensed for the current year who is a resident of the Municipality is also required to pay the licence fee in addition to the impoundment fees. Transfer of ownership of a cat or dog or litter, $55.00 brought into the Animal Shelter Transfer of ownership of a cat or dog, picked up 65.00 by the Animal Services Officers, during normal working hours (excluding Sunday and Holidays) Transfer of ownership of a cat or dog, picked up 90.00 by the Animal Services Officer, outside of regular business hours. Initial Application Fee Page 322 Attachment 2 to Report FSD-029-23 Initial Application Fee Annual Renewal Application Review Fee Parking Meter Zones on Highways (per schedule 5 of By-law) Municipal Parking Permit • Until 8:00am the next day • 7 days • 14 days • 21 days • 28 days • 56 days • 84 days Stationary Refreshment Vehicle Annual Licence Licensed Stationary Refreshment Vehicle Temporary Relocation Fee Mobile Refreshment Vehicle Annual Licence Mobile Refreshment Vehicle Temporary Relocation Fee Refreshment Cart Annual Licence Participation in a Special Event • Currently licensed in Clarington • Currently licensed in Durham $200.00 150.00 $1.00 Per hour 5.00 Maximum • $0.00 • 10.00 • 20.00 • 30.00 • 35.00 • 70.00 • 105.00 HE - I $200.00 First vehicle 100.00 Per additional vehicle 0.00 Up to 10 times per licensing period 50.00 Each additional time per licensing period 200.00 First vehicle 100.00 Each additional vehicle ,f o e 200.00 Unlimited number of carts 0.00 Per vehicle 25.00 Per vehicle Page 323 Attachment 2 to Report FSD-029-23 • Currently licensed in another jurisdiction in Ontario 50.00 Per vehicle • If not Currently licensed in any jurisdiction 200.00 First vehicle 100.00 Each additional vehicle Class A (Permit to Discharge Consumer $50.00 Fireworks) (Note 1) Class B (Permit to Discharge Display Fireworks or 75.00 Special Effect Pyrotechnics Class C (Permit to Sell from a Mobile Sales 100.00 Location Class D (Permit to Sell from a Temporary Sales 50.00 Location Fire Inspection Fee for all Permits other than a 75.00 Class Permit. Note 1: The fee for a Class A Permit is waived for cultural or religious holidays. Taxicab/Limousine Broker Licence $1,500.00 TNV Broker Licence 25,000.00 Replacement Plate 10.00 Broker Information Update (during term of 25.00 licence) Page 324 Attachment 2 to Report FSD-029-23 By-law 2023-xxx Schedule "C" Financial Services Fees Fee Schedule Effective July 1, 2023 All fees subject to applicable taxes Taxation Services Fee Tax Certificate $65.00 Unit Tax Certificate — Rush 75.00 Tax Receipts/Letters 10.00 Refund of incorrect payment by lawyers, mortgage companies Electronic payment correction (first correction at no charge for resident only) Reprint tax bill, PASP letter, adjustment, apportionment notification, etc. New tax account set-up fee 40.00 25.00 10.00 50.00 Research/archival fee one hour minimum 30.00 Per hour Post dated cheque removal fee or date change 25.00 Mortgage company information 10.00 Per roll Addition to tax roll (e.g., Region of Durham water/sewer lien, POA arrears, development charges etc.) Dishonoured payments (pre -authorized payments/ cheques 40.00 35.00 Ownership change 30.00 Per roll number Statement of Account 10.00 Per roll number Arrears notice 5.00 Per roll number Legal Fees/Title Searches 100.00 Per roll number Farm Debt Notice Fee 40.00 Per notice Process a refund/transfer between accounts 40.00 Per transaction Tax sale registration recovery service fee Recovery of actual cost Page 325 Attachment 2 to Report FSD-029-23 By-law 2023-xxx Schedule T" Emergency and Fire Fees Fee Schedule Effective July 1, 2023 All fees subject to applicable taxes Copy of Emergency Response Report, Fire Loss Report — Within past two (2) years Copy of Emergency Response Report, Fire Loss Report — Over past two (2) years (Archival File Search for buildings up to four (4) units. Additional unit Schedule "A" Open Air Fire Permit — Residential (12 months) Schedule "A" Open Air Fire Permit — Residential Schedule "B" Agreement for Controlled Burn Permit — farm Fireworks — Class B (permit to Discharge Display Fireworks or Special Effect Pyrotechnics) Fireworks — Class C (permit to Sell from a Mobile Sales Location) Fireworks — Class D (permit to Sell from a T S 1 L t' $150.00 225.00 150.00 Up to first four (4) units 25.00 Per additional unit $81.00 40.50 No Charge 225.00 100.00 50.00 emporary a es oca ion) Open Aire Fire/Explosion Permit — Special 225.00 Effects/Movie/Theatrical/Music Inspection of all buildings and occupancy Propane Plan review • Existing plan up to 5,000 USWG • Existing Plan, greater than 5,000 USWG • New/Modified Plan, up to 5,000 USWG $225.00 Up to 600m2 225.00 Each additional 600m2 or part thereof 300.00 450.00 750.00 2,250.00 Page 326 Attachment 2 to Report FSD-029-23 • New/Modified plan greater than 5,000 USWG • Retention of third -party engineering or other firm Single Family Residential Inspection Refreshment Vehicle Inspection Fire Safety Presentations and Lectures No charge Fire Drill No charge Fire Extinguisher Training No charge Standby requests Current MTO Rate Motor Vehicle Collisions on 400 Series Current Highways, Highway 35/115, Highway 35, Highway MTO Rate 115 Motor Vehicle Collisions on Municipal Ro (both Municipal and Regional Roads) - No Clarington Resident at fault Response to a natural gas incident adways Current n- MTO Rate plus Authorized Requestor Information Response to a dangerous goods, or hazardous materials incident Service fee Current MTO Rate plus any costs incurred to clean up or mitigate the hazard Current MTO Rate plus any costs incurred to clean up or mitigate the hazard M, Extinguishers to be provided by requestor Per vehicle for the first hour or part thereof Per vehicle for the first hour or part thereof Per vehicle for the first hour or part thereof, and for each additional one- half hour or part thereof Per vehicle for the first hour, and every one- half hour thereafter Per vehicle for the first hour, and for every on -half hour or part thereof thereafter Page 327 Attachment 2 to Report FSD-029-23 Emergency Services Additional expenses to retain a private Cost contractor or rent equipment on fire apparatus in recovery at order to suppress a fire, preserve property, actual costs prevent fire spread, remove materials creating a hazard, secure a property for investigation, determine fire cause, conduct a fire watch, or i otherwise eliminate an emeraencv or hazard i Preventable Fires and Alarm Services "ee Response to unapproved open-air burning (after Current Per vehicle, one warning per 12-month period) MTO Rate minimum one (1) hour, and every one-half hour thereafter Responses to fires on or beside rail lines caused I Cost by railway company recovery at actual costs Response to malicious and nuisance alarms Current Per vehicle, (following two occurrences in a 12-month period) MTO Rate minimum one (1) hour, and every one-half hour thereafter Page 328 Attachment 2 to Report FSD-029-23 By-law 2023-xxx Schedule "E" Planning and Infrastructure Services Fees Fee Schedule Effective July 1, 2023 All fees subject to applicable taxes Official Minor Application $17,410.00 Major Application Note 1 25,510.00 Aggregate Pit or Quarry 38,510.00 Regional Official Plan Amendment Review 3,140.00 Neighbourhood Design Plan Amendment 5,810.00 Zoning By-law Amendment (Note 7) Minor Fee $8,750.00 Unit Major (Note 3) 13,120.00 Removal of " H " Holding Symbol 3,030.00 2,570.00 Extension of a temporary use Draft Plan of .. Urr Residential $18,570.00 Base amount 300.00 Per unit 500.00 Per block Non -Residential 7,690.00 Preparation of Subdivision Agreement (Note 5) 4,650.00 Preparation of Subdivision Agreement 1,170.00 Amendment (Note 5) Recirculation Fee 50% of the base fee Page 329 Attachment 2 to Report FSD-029-23 300.00 Per unit 500.00 Per block Where original application was filed prior to July $16,230.00 Base amount 1, 2000 300.00 Per unit 500.00 Per block Where original application was filed between 8,130.00 Base amount July 1, 2000 and December 31, 2006 300.00 Per unit 500.00 Per block Where original application was filed after 8,130.00 December 31, 2006 Subdivision Clearance 2,960.00 Extension of Draft Plan Approval 2,960.00 CondominiumDraft Plan of Residential and Non-residential $8,460.00 Application for Condominium Conversions 10,260.00 Preparation of Condominium Agreement (Note 5) Preparation of Condominium Agreement Amendment (Note 5 Condominium Clearance Part Lot Control (Note 7) 4,250.00 Base amount Per unit 870.00 2,340.00 1,170.00 60.00 Telecommunications Towers $9,290.00 6,980.00 Base 225.00 Per unit for first Residential Use 100 units 150.00 Per unit after first 100 units _ 5,810.00 _ Base Commercial Use 1.50 Per m2 commercial gross floor area Mixed Use Building (note 12) 5,240.00 0.60 Base Page 330 Industrial / Other Uses Amendment - Residential Use Amendment - Commercial Use Amendment - Mixed Use (note 12) Amendment - Industrial / Other Use Attachment 2 to rt FSD-029-23 60.00 Per m2 commercial gross floor area Per residential unit (max $20,000) 3,500.00 Base 0.25 Per m2 gross floor area (max $10,000) 1,170.00 Base 50.00 Per unit (maximum $6,000) 2,110.00 Base 1.50 Per m2 commercial gross floor area (maximum $16,000) Base Per m2 commercial gross floor area Per residential unit (maximum $16,000) _ 950.00 Base 0.20 Per m2 gross floor area (maximum $6,400) Minor Site Plan / Oak Ridges Moraine (note 2) 760.00 Sales Trailer / Model Home 2,340.00 Preparation of Section 41 Agreement (note 5) 710.00 Preparation of Section 41 Agreement Amendment 710.00 (note 5) Landscape Inspection Fee For projects with greater than 2500 sq. Page 331 Attachment 2 to Report FSD-029-23 ApprovalSite Plan m. of floor area, or 25 units or greater (0.5% of the landscape cost estimate with a minimum of $1,000 Recirculation Fee 50% of the base fee Extension of Site Plan Approval 50% of the original application fee Committee of Adjustment — Minor Variance Fee Unit (Notes 4 and 7) Accessory Buildings and Structures $670.00 Residential Minor (single, semi-detached, 870.00 townhouse or proposed lot) Residential Major (all other residential) 1,410.00 Commercial 2,000.00 Other non-residential 870.00 Tabling and Recirculation Fee (applicant 300.00 initiated) Sign By-law Fee Unit Variance $820.00 Amendment 1 2,040.00 Additional Application and Registration $250.00 Registration for Applications submitted prior to 120.00 January 1, 2015 Rental Protection Act 1,510.00 Page 332 Attachment 2 to Report FSD-029-23 Zoning, Building, and all other property $200.00 information Subdivision and Site Plan (per aureement) 1 200.00 Peer review Pre -Consultation Stage 1 — Conceptual Proposal Review Pre -Consultation Stage 2 — Technical Proposal Review Pre -Consultation - Minor Street Name Change Request Activation of a dormant application not requiring a public meeting (Applicant responsible for 100% Municipality's full costs of undertaking a Peer Review) $1,000.00 5,000.00 300.00 1,410.00 Base 50.00 Per Municipal Address Greater of 25% of initial application fee or $1,600 Page 333 Attachment 2 to Report FSD-029-23 Application Requiring An Open House or Additional Public Meeting Application Requiring Additional Public Meeting Application Involving Review Under EPA and/or EAA Process (additional fee) Ontario Municipal Board or Land Planning Appeals Tribunal Related Administration Fee (note 8) Preparation of Development / Servicing Agreement (note 5 and note 9) Folding of drawings accompanying a submission (fee per sheet) Notarial Fee by Municipal Solicitor Commissioners Fee by Municipal Staff $2,050.00 1 Per meeting 2,340.00 First meeting plus fee for each subsequent public meeting where notice is provided through the local newsoaDE 5.00 , Per sheet 25.00 25.00 Publications Fee unit Small maps $5.00 Large maps 15.00 Aerial Photography (colour) 5.00 Official Plan Colour Map 5.00 Clarington Official Plan 75.00 Clarington Zoning By-law 75.00 Clarington Street Name Index CD Format 16.00 Studies Under 40 pages 13.00 40 to 100 pages 26.00 100 to 200 pages 43.00 Over 200 pages 60.00 CD 15.00 Page 334 Attachment 2 to Report FSD-029-23 Real Property Transactions Fee Unit Preparation of any agreements relating to real property transactions not otherwise specifically addressed in this Fee schedule; land transfers (e.g., right-of-ways, encroachments, leases and licensed, easements) the person requiring the agreement shall be required to pay fees and disbursements in accordance with notes 5 and 9 below. Chief Building Official Service Fee Unit Master Plumbing License $100.00, Drain Contractor License 100.00 Note 1 The following are criteria for determining what constitutes a Major Official Plan Amendment application: • New golf courses or expansion to existing golf courses; • New waste facility or expansion to existing waste facility; • Commercial Development greater than 2,500 m2; • Deletion or addition of arterial or collector road; and/or Any application that due to the broader policy implications for the Municipality would require the need to review or manage studies, or any application deemed to be a major by the Director of Planning Services. Note 2 The following are criteria for determining what constitutes a Minor Site Plan application: • A residential or agricultural site plan in the Oak Ridges Moraine as required by the Official Plan and Zoning By-law 2005-109; • A dog kennel and similarly scaled uses; and/or • A minor alteration to an existing site plan to revise parking, add a patio, add a storage building, revise signage, add or delete portables, etc. Note 3 The following are criteria for determining what constitutes a major Zoning By-law Amendment application: • Associated with an Official Plan Amendment; • Associated with an application for proposed Plan of Subdivision; • Application involving multiple properties, except for commercial and industrial related applications; and/or Page 335 Attachment 2 to Report FSD-029-23 • Any application that requires the review of technical support documents or studies (e.g., environmental analyses, transportation). Note 4 Minor Variance applications for the construction or placement of an accessibility device to provide access to a single-detached/link or townhouse dwelling is exempt from the fee. An "accessibility device" is defined as a device including a ramp that aids persons with physical disabilities in gaining access to a dwelling unit. Note 5 Agreement preparation fee does not include the cost of registering the agreement and all related documents (e.g., Transfers, Postponements, or inhibiting orders) in the Land Registry office. The cost of such registrations is as follows: • Initial registration $250.00 plus HST, plus disbursements • All subsequent registrations $125.00 plus HST, plus disbursements. Applicants must provide the Municipality (Legal Services) with all such costs prior to registration. Note 6 The following are criteria for determining what constitutes a minor application for red- line revisions to Draft Approval: • Does not require circulation to outside agencies. Note 7 Fees for all Planning applications submitted by a registered charitable organization or for a registered non-profit housing organization will be reduced by 50%. Note 8 In addition to the fees set out for Planning Act Applications, the total fees payable shall include all fees associated with supporting an applicant at any hearing where the application was approved by Municipal Council including legal fees at a rate of $180/hour and consultant/witness fees where required but excluding the costs of the Planning Department staff. Note 9 For preparation of any development/servicing agreement other than a subdivision agreement, Section 41 agreement or a Section 53 agreement, the applicant is required to reimburse the Municipality for its legal costs. If the legal work is undertaken by the Municipal Solicitor, it will be charged at the rate of $180/hour. If the legal work is undertaken by other legal counsel, it will be charged at the legal counsel's hourly rate. The minimum fee for any such agreement shall be $475.00 plus HST. Page 336 Attachment 2 to Report FSD-029-23 Note 10 This Schedule "A" shall remain in effect from July 1, 2022, until June 30, 2023. In the event that a fees review is not undertaken before that date fees will be increased annually by 3%, commencing on July 1, 2024. Note 11 Where Official Plan and Zoning By-law Amendments are submitted together a reduction of 50% of the Major Zoning By-law Amendment Fee shall apply. Note 12 The fee for a Mixed -Use Building will apply when residential units are proposed and a minimum of 50% of the ground floor of a building is for non-residential purposes. Note 13 Recirculation fees will be required on the 4t" resubmission of application materials that require circulation to internal departments and/or external agencies. Note 14 The following are criteria for determining what constitutes a Minor Pre -consultation: • Applications associated with a single detached dwelling; and/or • Applications associated with an agricultural use. Page 337 Attachment 2 to Report FSD-029-23 By-law 2023-xxx Schedule T" Community Services Fees Fee Schedule Effective July 1, 2023 All fees subject to applicable taxes Aquatics $19.37 Per hour Category A Category B 13.63 Per hour Category C 58.94 Per hour Category D 37.41 Per hour Bronze Cross 7.70 Per hour Bronze Medallion and Emergency First 8.49 Per hour Aid Bronze Star 10.10 Per hour Lifesaving Society Instructor 4.23 Per hour National Lifeguard Full Course 6.07 Per hour Advanced Leadership Instructor 6.38 Per hour National Lifeguard Recertification 14.28 Per hour Standard First Aid and CPR C 6.14 Per hour Swim Instructor 6.07 Per hour Exam Cost Actual Per exam Material Cost Actual Per exam Swim / Skate • Adult $4.33 Per visit • Adult (Multi -pack) 4.15 Per visit • 3 and Under 0.00 Per visit • Senior 3.30 Per visit • Senior (Multi -pack) 3.05 Per visit • Youth 3.30 Per visit • Youth (Multi -pack) 3.05 Per visit • Group 10.45 Per visit 207.90 • Membership Per year 6 Category A Fee $5.19 Unit Per hour Category B 5.51 Per hour Category C 7.00 Per hour Category D 7.10 Extended Care 3.06 Per hour Per hour Page 338 Admissions and ticketing Category A • Resident • Community Group • Commercial Category B Category C • Resident • Community Group • Commercial Category D • Resident • Community Group • Commercial Category E • Resident • Community Group • Commercial Category A Parking Lot Category B Parking Lot Category C Parking Lot Category D Parking Lot • Community Group Event • Full Hall • Dry Pad • Full Facility with Dry Floor Attachment 2 to Report FSD-029-23 Set by event Based on services and on a cost recovery basis -IM AIIIIIIIIIIIIIIII $101.00 Per hour 81.00 Per hour 116.50 Per hour 124.84 Starting January 1, 2024 0.00 Per hour 90.64 Starting January 1, 2024 75.00 Per hour 60.00 Per hour 86.25 Per hour 92.70 Starting January 1, 2024 55.00 Per hour 32.00 Per hour 45.32 Starting Jan 1, 2024 65.55 Per hour 40.25 Per hour 30.25 Per hour 35.95 Per hour 49.75 Starting Jan 1, 2024 610.00 Per day 305.00 Per day 0.00 Per day 157.08 Starting Jan 1, 2024 0.00 Per day 10.00 Starting Jan 1, 2024 0.00 Per day 1,000.00 Starting Jan 1, 2024 0.00 Per day 1,325.00 Starting Jan 1, 2024 0.00 1 Per day Page 339 • Full Facility with ice Drapery rental Kitchen Licensed event Stage set-up Dry Floor • Resident • Community Group • Commercial Ice 5 Skater Ice Discount Ice Non -Prime • Resident • Community Group • Commercial Ice Prime Time • Resident • Community Group • Commercial Lacrosse Bowl • Resident • Community Group • Commercial Turf Full Field Discount Turf Full Field Non -Prime • Resident • Community Group • Commercial Turf Full Field Prime Time • Resident • Community Grout) Attachment 2 to Report FSD-029-23 3,400.00 Starting Jan 1, 2024 0.00 Per day 5,500.00 Starting Jan 1, 2024 80.00 Per event 122.00 Per day 10.00 Per hour 50.00 Per event 91.18 Per hour 76.51 Per hour 107.00 Per hour 112.70 Starting January 1, 2024 85.00 Per hour 128.50 Per hour 175.84 Per hour 124.63 Per hour 144.90 Starting Jan 1, 2024 202.22 Per hour 217.34 , Starting Jan 1. 2024 232.11 Per hour 181.97 Per hour 191.26 Starting January 1, 2024 266.92 Per hour 286.88 Starting January 1, 2024 26.78 Per hour 16.48 Per hour 22.06 Starting Jan 1, 2024 30.79 Per hour 73.00 1 Per hour 163.69 Per hour 119.03 Per hour 134.88 Starting Jan 1, 2024 188.24 Per hour 202.32 Starting Jan 1. 2024 198.81 Per hour 163.69 Per hour Page 340 • Commercial Turf Half Field Non -Prime Time • Resident • Community Group • Commercial Turf Half Field Prime Time • Resident • Community Group • Commercial Gymnasium Full • Resident • Community Group • Commercial Gymnasium Half • Resident • Community Group • Commercial Attachment 2 to Report FSD-029-23 228.63 Per hour 245.72 , Starting Jan 1, 2024 81.85 Per hour 59.91 Per hour 67.45 Starting Jan 1, 2024 94.13 Per hour 101.17 1 Startina Jan 1. 2024 100.18 Per hour 81.85 Per hour 115.21 Per hour 123.83 Startina Jan 1. 2024 57.17 Per hour 40.79 Per hour 47.11 Starting Jan 1, 2024 65.74 Per hour 41.00 Per hour 26.00 Per hour 33.78 Starting January 1, 2024 47.15 Per hour Gymnasium South Courtice Arena • Resident 24.00 Per hour • Community Group 17.66 Per hour • Commercial 27.60 Per hour Pool Main • Resident 159.81 Per hour • Commercial 183.75 Per hour 197.52 Starting Jan 1, 2024 Pool Additional Staff 24.57 Per hour Pool Swim Club / School Board • Youth 66.99 Per hour • Adult 80.85 Per hour Squash Club Court Rentals 663.72 Per month Internal Bookings / Community Group 0.00 Per event Page 341 • Commercial • Youth Major Field - Unlit • Adult • Commercial • Youth Minor Field • Adult • Commercial • Youth Tournaments Tournament lighting Batting Cages Artificial Turf Field - Lit • Adult • Commercial • Youth Artificial Turf Field - Unlit • Adult • Commercial • Youth Gazebo Picnic Area Special Event • Commercial • Resident Stage Rental • Saturday (minimum 3 hours) • Sunday / Stat holiday (minimum 3 hours Category A Category B Assessment - Body Scan Assessment - First Steps Dryland Training (max 30 players) High School Visits (max 30 students Workshous Attachment 2 to Report FSD-029-23 63.96 Per hour 32.98 Per hour 27.81 Per hour 31.98 Per hour 4.84 Per hour 15.45 Per hour 17.76 Per hour 3.91 Per hour 210.33 Per day 38.80 Per hour 0 Per hour 96.90 Per hour 111.44 Per hour 119.77 Starting Jan 1, 2024 81.60 Per hour 66.30 Per hour 76.25 Per hour 81.95 Starting Jan 1, 2024 56.10 Per hour 0.00 Per hour _ 0.00 Per hour 77.86 Per hour 37.54 Per hour 50.13 Per hour 68.23 1 Per hour $6.26 Per hour Per hour Per service Starting Jan 1, 2024 Per service Per hour Per hour 9.08 0.00 13.23 69.00 136.17 84.90 12.84 Per hour Page 342 Attachment 2 to Report FSD-029-23 Personal Training • Per Hour 50.44 Per hour • 5 Hours 47.84 Per hour • 10 Hours 43.26 Per hour • Semi -Private 37.96 Per hour • Semi -Private 5 hours 35.36 Per hour • Small Group 0.00 Per hour 15.00 Starting January 1, 2024 Fitness Centre 410.00 Per year Fitness Centre Plus 577.08 Per year Group Fitness 365.70 Per ear Locker Rental 80.00 Per year Fitness 10.46 Per visit 9.45 Per visit (multi -pack) Per visit Group Fitness 9.08 8.19 Per visit (multi -pack) Category A • Adult $4.36 Per hour • Youth 4.17 Per hour Category B • Adult 5.23 Per hour • Youth 6.60 Per hour Category C • Adult 7.06 Per hour • Youth 8.01 Per hour Category D • Adult 9.62 Per hour • Youth 10.39 Per hour Category E • Adult 12.18 Per hour • Youth 0.00 Per hour 17.50 Starting Jan 1, 2024 Tournament 3.74 Per hour Trade Booth • Commercial 54.56 Per event • Community Group 0.00 Per event Luncheon 9.90 Per visit Special event with meal and 19.80 Per visit entertainment Special event with refreshment 13.48 Per visit Page 343 Recreation General Drop -in • Adult • Adult (multi -pack) • Senior • Senior (multi -pact Sports Drop -in • Adult • Adult (multi -pack) • Senior • Senior (multi -pack) • Youth • Youth (multi-paO Sports Drop -in Specialt, • Adult • Adult (multi -pack; • Senior • Senior (multi-pacl • Youth • Youth (multi -pack) Daytime Skating Drop -in • 3 and Under • Adult • Adult (multi -pack) • Senior • Senior (multi -pack) • Youth • Youth (multi -pack) Attachment 2 to 5.30 4.78 2.12 1.80 0.00 0.00 6.78 6.10 4.75 4.27 4.75 4.27 Per visit Per visit Per visit Per visit Per visit Per visit Per visit Per visit Per visit Per visit Per visit Per visit Per visit Per visit Per visit Per visit 0.00 Per visit 3.00 Per visit 0.00 Per visit 1.50 Per visit 0.00 Per visit 1.50 Per visit 0.00 Per visit rt FSD-029-23 Note: Effective January 1, 2024, certain fees as identified above will change despite clause 2 to the Fees By-law to better align the charges to the actual cost and discounts applied. After January 1, 2024, these fees will be subject to annual inflation per clause 2. Administration Aquatic Leadership Discount 20% Remote Programming Incentive 0% Discount 20% Starting January 1, 2024 Non -Resident Surcharge 10% Activity registration Age Based Discount — Senior 50% Activity registration Age Based Discount - Youth 50% Memberships Employee Part-time Discount 50% Memberships Memberships Family/Group Discount 20% Page 344 Attachment 2 to Report FSD-029-23 Administration Fee Inclusion Membership Discount — Adult 50% Memberships Inclusion Membership Discount — 20% Memberships Senior Inclusion Membership Discount — Youth 20% Memberships Student Discount 20% Memberships Community Group / Not for Profit 0% Facility rentals Discount (not already identified) 20% Starting January 1, 2024 Commercial Business Surcharge (not 0% Facility rentals already identified) 20% Starting January 1, 2024 Multi -pack Discount (not already 0% Pay As You Go identified) 10% Starting January 1, 2024 Facility Cancellation Surcharge — Spot 10% Per hour turnback rentals with notice Facility Cancellation Surcharge — Spot 50% Per hour turnback rentals without notice Statutory Holiday Rental Surcharge $83.49 Per hour Administrative Fee $10.00 Per transaction Replacement Access Card $5.00 Per card Discounts do not apply where rates have already been discounted. Effective January 1, 2024, rates for Commercial and Community Groups will be based on the Residential rate plus or minus the applicable surcharge or discount for commercial and community based groups. Future fee schedules will eliminate separate categories and only show the residential rate as the base rate for facility rentals. Effective January 1, 2024, a multi -pack discount will be applied to the base admission fee for pay as you go programming. Future fee schedules will eliminate the separate category and only show the per visit fee. Page 345 Attachment 2 to Report FSD-029-23 By-law 2023-xxx Schedule "G" Public Works Fees Fee Schedule Effective July 1, 2023 All fees subject to applicable taxes Daytime electric vehicle station use under three $1.50 Per hour (3) hours Daytime electric vehicle station use after three (3) + 4.00 Per hour 30 minute grace period Nighttime electric vehicle station use 1.50 Per hour Reservation no-show 3.00 Flat fee Note: 1. For daytime use (7:30am to 5:00pm Monday to Sunday), the user is expected to move their vehicle from the charge station parking spot after three (3) hours. A grace period of 30 minutes will be permitted once their allotted time has elapsed before an additional fee is applied. 2. Where offered by the Electric Vehicle Charger Service Provider, Electric Vehicle Parking Spaces may be reserved via an online booking platform on a first come first served basis. If the User does not connect to the electric vehicle charging station within 10 minutes of the reserved time, the User will be charged a fee and lose their place in the queue.3 Special Events on Municipal Highways By-law Fee Unit (2014-021) Application 11 11 ...w......r,...._.,...----.......,.��........,. ..... �.....r..,....� closure or occupancy Senior snow clearirn Commemorative Tree Commemorative Bench $85.19 Per Season Page 346 Attachment 2 to Report FSD-029-23 Access Permit Application 1$125.00 Access Permit Rural (based on size of 271.43 Per M of 400mm steel culvert culvert) 307.41 Per M of 450mm steel culvert 328.57 Per M of 600mm steel culvert 20.00 Per 400mm steel coupler 22.00 Per 450mm steel coupler 25.00 Per 600mm steel coupler Access Permit Urban (determined by 210.20 Per cut up to two metres contractor) 34.68 Each additional metre Per metre Curb reinstatement (determined by 723.10 contractor) Per square metre Sidewalk remove and replace 723.10 (determined by contractor) Page 347 Attachment 2 to Report FSD-029-23 By-law 2023-xxx Schedule "H" Cemetery Fees Fee Schedule Effective July 1, 2023 All fees subject to applicable taxes Sale of Plots Single (3' x 9') Infant (1.5' x 3') Cremation (2' x 2') Niche (including plaque) Adult — Single Depth Adult — Double Depth Cremation L $859.60 $1,289.40 $2,149.00 Per plot, includes 40% care and maintenance Not No No applicable charge charge 286.40 429.60 716.00 Per plot, includes 40% care and maintenance $368.10 $2,085.90 ' $2,454.00 Per niche, includes 15% care and maintenance $1,133.00 1,410.00 433.00 Page 348 Attachment 2 to Niche 217.00 Infant No charge rt FSD-029-23 Disinternment Adult — Single Depth Fee $1,865.00 Adult — Double Depth 2,243.00 Cremation 511.00 Niche 217.00 Infant 511.00 Saturday Plot Interments $266.00 Saturday Cremation/Niche Interments Sunday & Stat Holidays Plot Interments No additional charge 627.00 Sunday & Stat Holidays Cremation/Niche Interments 228.00 Rental for lowering device, set up and dressing 144.00 Provincial Licence Fee 13.63 Granite Plaque Replacement 333.00 Transfer Fee Duplicate or Replacement Certificate Third Party Sale Transfer Transfer Back to Municipality $39.00 39.00 39.00 39.00 Monument $200.00 $477.00 1 $677.00 Flat Marker — 100.00 300.00 400.00 Maximum Regular height 24.5" x 18.5" Flat Marker — 100.00 133.00 233.00 Maximum Cremation size 22" x 16" Page 349 Attachment 2 to Report FSD-029-23 Flat Marker — Not Applicable 133.00 Block IBL Foot Marker Not Applicable 133.00 Removal of Not Applicable 94.00 Monuments 133.00 Maximum size 16.5" x 10.5" 133.00 Maximum size 16" x 10" Page 350 Clarington Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Joint Committees Date of Meeting: June 19, 2023 Report Number: FSD-030-23 Submitted By: Trevor Pinn, Deputy CAO/Treasurer Reviewed By: Mary -Anne Dempster, CAO Resolution#: File Number: By-law Number: Report Subject: 2022 Audited Financial Statements Recommendations: 1. That Report FSD-030-23 and any related delegations or communication items, be received; 2. That the Financial Statements for the Board of Management for Historic Downtown Bowmanville Business Improvement Area for the year ending December 31, 2022 be approved; 3. That the Financial Statements for the Board of Management for the Newcastle Central Business District Improvement Area for the year ending December 31, 2022 be approved; 4. That the Financial Statements for the Board of Management for the Orono Central Business District Improvement Area for the year ending December 31, 2022 be approved; 5. That the Financial Statements for the Municipality of Clarington Trusts for the year ending December 31, 2022 be approved; 6. That the Consolidated Financial Statements for the Municipality of Clarington for the year ending December 31, 2022 be approved; 7. That the Deputy CAO/Treasurer and Accounting Services Manager/Deputy Treasurer be authorized to sign the required letters to finalize each of the audits; Page 351 Municipality of Clarington Page 2 Report FSD-030-23 8. That Staff prepare the Annual Financial Report for the year ending December 31, 2022 for public consumption; and 9. That all interested parties listed in Report FSD-030-23 and any delegations be advised of Council's decision. Page 352 Municipality of Clarington Report FSD-030-23 Report Overview Page 3 The Municipality is required to prepare financial statements in compliance with Public Sector Accounting Standards (PSAS) as established by the Public Sector Accounting Board (PSAB) annually. To further enhance the transparency and understandability of the Municipality's financial data, an Annual Financial Report is also issued. This additional information includes five- year trends for certain financial information, provides historical context and trends the financial statements. 1. Background 1.1 Section 294.1 of the Municipal Act, 2001 requires that a municipality, for each fiscal year, prepare annual financial statements for the municipality in accordance with generally accepted accounting principles for local governments as recommended, from time to time, by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. 1.2 The statements included in the attachments to this report have been prepared in accordance with the current Public Sector Accounting Standards (PSAS) that are in force. Municipality of Clarington Financial Services staff continue to monitor changes to PSAS as they become effective. 1.3 The Consolidated Financial Statements for the Municipality of Clarington include the organizations, local boards and committees that are controlled by the Municipality and form the reporting entity under PSAS. These include: a. Board of Management for the Historic Downtown Bowmanville Business Improvement Area b. Board of Management for the Newcastle Central Business District Improvement Area c. Board of Management for the Orono Central Business District Improvement Area d. Clarington Public Library Board and Clarington Museums and Archives e. Newcastle Arena Board Newcastle Community Hall Board g. Solina Hall Board Page 353 Municipality of Clarington Page 4 Report FSD-030-23 h. Tyrone Community Hall Board Clarington Heritage Committee Bowmanville Santa Clause Parade Committee 1.4 Section 295 of the Act requires the Municipality to publish, within 60 days, the audited financial statements in a newspaper having general circulation within the municipality and a notice that the statements and notes would be available at no cost to the taxpayer upon request. The information may also be provided in a manner that the Treasurer considers appropriate. As in the past, these statements will be made available on the Municipality's website, and copies may be obtained from Financial Services. 1.5 Continuing a practice started in 2021, Financial Services have drafted an Annual Financial Report, which provides the audited financial statements as well as financial discussion and analysis. This report is becoming a more common report from larger municipalities and is similar to reports seen by publicly traded companies. The numbers in a financial statement only provide a certain amount of information, to be usable to stakeholders' additional information may be beneficial. In 2022, staff have added five- year charts to provide a trend analysis of certain financial information. 2. Financial Statements for the Board of Management for Historic Downtown Bowmanville Business Improvement Area 2.1 The major change in the Statement of Financial Position of the Bowmanville BIA is an increase of $10,772 in the cash and cash equivalents held by the Bowmanville BIA. This corresponds with the annual surplus of $18,101 during the year. 2.2 The fundraising revenue increased significantly during the year, driven by a return to in - person events, such as Maplefest, Bluesberry Festival and Applefest. 2.3 The events and promotion expenses returned to a level similar to the pre -pandemic level as the Bowmanville BIA increased promotions and events (other than festivals) to assist businesses in recovery. 2.4 Expenses remained at a consistent level for 2022. 2.5 There were no capital projects during the year. 2.6 The Bowmanville BIA has an accumulated surplus of $68,507, which is higher than the pre -pandemic level and is, in part, a result of the surpluses in the pandemic periods. Page 354 Municipality of Clarington Page 5 Report FSD-030-23 3. Financial Statements for the Board of Management for the Newcastle Central Business District Improvement Area 3.1 Cash and cash equivalents increased during the year by $13,490. This corresponds with the annual surplus for 2022 of $14,035. 3.2 The Newcastle BIA's revenue was lower by $8,641 versus 2021. The fundraising revenue increased by $32,907 during the year driven by a return to in -person events. This was offset by lower grant revenue and lower transfers, as in 2021, the Newcastle BIA received a grant from the Municipality of Clarington for COVID-19 support for $16,548 and a transfer of $25,000 from the Municipality of Clarington's reserve fund for the BIA ("west end money") to fund the purchase of Christmas wreaths. 3.3 Expenses are higher by $6,513, which primarily is due to increased event expenses. 3.4 The annual surplus of $14,035 increases the accumulated surplus to $76,201, which can be utilized in future years to promote and support the Newcastle BIA. 3.5 The net financial assets of the Newcastle BIA equal the total accumulated surplus of $76,201 as there are no non -financial assets (tangible capital assets). The Newcastle BIA is in a strong financial position. 4. Financial Statements for the Orono Central Business District Improvement Area 4.1 The main changes in the Orono BIA statement of financial position are a reduction of cash of approximately $2,635, which is related to the annual deficit of $4,985, and an increase in Accounts Payable of $2,310 due to the timing of purchases. 4.2 The Orono BIA saw an increase in revenue, of $11,092 for 2022 over 2021. This was driven mainly by an increase in fundraising activities, stemming from a return to in - person events and grant revenues. 4.3 The expenses were higher in 2022 as a result of increased advertising and promotional activities in support of many events, including the Orono Antique Festival and Orono Santa Claus Parade. 4.4 The annual deficit of $4,985 decreased the accumulated surplus to $7,652. The BIA still has an accumulated surplus which is sufficient to cover its liabilities. Page 355 Municipality of Clarington Page 6 Report FSD-030-23 5. Financial Statements for the Municipality of Clarington Trust Funds 5.1 The Trust Funds are not included in the Municipality of Clarington's consolidated financial statements. The financial reporting follows PSAB and includes all of the trust funds that the Municipality is responsible for. Most of the funds are related to cemetery trusts, with an additional two bequests which are not cemetery related. 5.2 The Trusts do not have any liabilities and consist predominantly of investments, which are primarily GICs. The due (to) from the Municipality of Clarington relates to expenses incurred at the cemetery or funds received by the Municipality, which are due to be transferred to the trust fund. 5.3 During the year, $119,514 in care and maintenance receipts were received, with an additional $36,270 of interest earned on the trust fund investments. The trusts transferred $30,531 to the Municipality mainly for the ongoing care and maintenance of the cemeteries. 6. Consolidated Financial Statements for the Municipality of Clarington Administrative 6.1 The letter stating management's responsibility for the financial statements is a requirement of PSAS and serves to emphasize that the financial statements are the responsibility of the Municipality, not the auditors. 6.2 The Independent Auditor's Report is in accordance with requirements of Canadian Auditing Standards (CAS). The report indicates the auditor's opinion on whether the financial statements and the notes are in accordance with Canadian public sector accounting standards. The audit opinion is "clean" which indicates that we are materially compliant with applicable accounting standards. Statement of Financial Position 6.3 The Statement of Financial Position is the public sector accounting equivalent of a balance sheet. The statement provides a snapshot, as at December 31, 2022, of the assets, liabilities and accumulated surplus (an indicator of service capacity) specifically on that day. 6.4 Net Financial Assets (the difference between financial assets and liabilities) increased by approximately $13.5 million in 2022. The financial asset -to -liability ratio of 1.8.1.0 shows that the Municipality is in a position to fulfill its financial obligations. The reserve Page 356 Municipality of Clarington Report FSD-030-23 Page 7 and reserve fund balances of $66.7 million are two times higher than debenture debt, indicating that there are sufficient resources to meet future debt obligations. 6.5 A detailed breakdown of the accumulated surplus is presented in Note 19, "Accumulated Surplus" of the Consolidated Financial Statements. The term "accumulated surplus" does not mean and cannot be implied to mean that there are "cash or funds" available for spending. The vast majority of the value in the accumulated surplus represents non -financial assets and reflects the Municipality's investment in the required infrastructure to deliver the programs and services that stakeholders expect. Statement of Operations 6.6 The Statement of Operations is the public sector accounting equivalent of an income statement in the private sector. The Statement of Operations provides a summary of revenue and expenses for the year, with the annual surplus representing the difference between the cost of providing the Municipality's services and the revenues recognized during the year. 6.7 In accordance with PSAS, the Municipality uses the accrual basis of accounting rather than the cash -basis. Revenue is recognized when it is earned, and expenses are recognized when they are incurred, as opposed to when funds transfer. 6.8 The Statement of Operations, as required by PSAS, lists revenues based on like revenue streams (e.g., taxation, user charges, grants) and expenses based on functional segments. The functional segments for expenses follows the Province of Ontario's Financial Information Return (FIR) segmentation on service lines. 6.9 Information on the segments' revenues and expenses, including expense accounting object (e.g., salaries and wages, operating materials, contract services), are included in Schedule 2. Current year and prior year schedules are provided to allow for year -over - year comparisons. 6.10 Schedule 3 shows the budgeted breakdown by segment for each accounting object. This is not a required schedule; but is included to provide additional information to users. 6.11 Property taxation includes the Municipality's portion only. Funds which are collected on behalf of the Region of Durham, or the Province of Ontario (for education purposes) are not shown as part of the Statement of Operations. The notes to the financial statements contain a note disclosure on the funds which have been collected and remitted on behalf of the other levels of government. 6.12 A return to pre -pandemic service levels at all facilities drove the 2022 increase in user charge revenue over the prior year's level. Investment income and contributed tangible Page 357 Municipality of Clarington Report FSD-030-23 Page 8 capital assets also experienced increases. Most of the deferred revenue earned relates to development charges and is recognized when the asset is recognized. Deferred revenue may also be recognized when grant obligations are met. 6.13 Amortization expense is a non -cash expense which allocates the capital cost of assets across the useful life of the asset. 6.14 Overall, the expenses for the Municipality were below the 2022 budget, but higher than 2021 actuals. The increase is mainly driven by a return to full -service levels post - pandemic. It should be noted that the surplus and budget shown on the statements are in accordance with PSAB and are not shown on the same basis that the Municipality budgets annually (which uses a modified cash -basis). 6.15 The Statement of Operations shows an annual surplus of $14.3 million for 2022; this compares to the $9.2 million indicated in the budget column. This surplus is a result of the differing treatment between the cash -based budget process and the accrual -based reporting process. Included in revenue is $7.5 million, the fair market value of assets transferred from developers (assumed subdivisions) during the year. In future years there will be expenses related to these assets' replacement, maintenance and repairs. As well, there was a significant investment income variance in 2022, this is in part due to the fact that historically the Municipality did not budget for reserve fund interest income, this was changed with the 2023 budget process. Approximately $3.1 million of the $5.5 million relates to interest for reserve and reserve funds, this income is put into the reserve fund (per regulation) rather than general use. The other variance is a result of the change in interest rates during 2022, the budget for 2022 was based on a significantly lower interest rate environment than what occurred and was beyond the expectation of staff at the time. Further, included in the annual surplus is $2.0 million which is recognizing Clarington's equity share of the net income of Elexicon. These funds are not Clarington's but rather show the value of the asset which is the investment in the company. Statement of Changes in Net Financial Assets 6.16 The purpose of the Statement of Change in Net Financial Assets is to provide financial statement users additional information on the Municipality's financial activities during the year. 6.17 The statement starts with the annual surplus and backs out non -financial activities such as amortization, accounting gains/losses, and the purchase and sale of assets. 6.18 The main variance between 2022 and 2021 relates to a significant increase in the acquisition of tangible capital assets and the difference in the assets under construction transferred to tangible capital assets in 2022. Page 358 Municipality of Clarington Page 9 Report FSD-030-23 Statement of Cash Flows 6.19 The statement of cash flows explains how the organization financed its activities and met its cash obligations. As is common with public sector entities, the Municipality uses the indirect method of cash flow statements, which takes the annual surplus/deficit and adjusts for non -cash transactions as well as the implied cash impact through changes in the statement of financial position. 6.20 The cash position of the Municipality decreased during the year from $77.7 million in cash to $66.2 million. During the year, operating activities contributed to an increase of $40.4 million, this includes the receipt of receivables as well as cash (development charges) that are restricted to be used in future years. 6.21 Capital activities represent the investment the Municipality has made in its tangible capital assets that are utilized in the delivery of services to stakeholders. The Municipality invested $15.7 million in cash outlays in 2022. 6.22 The Municipality investment levels increased significantly during 2022, as funds which had been received in 2021 as cash and the debenture funds received in 2022 (to be expended in future years) were transferred to various investment vehicles. Dividends from our investment in Elexicon were received during the year. 6.23 Financing activities during the year included repayment of $1.8 million in the principal of long-term debenture debt. There were $26.4 million in new issuances of debenture debt in 2022. The debenture funds are earmarked for arena improvements at the Newcastle and Orono arenas and the South Bowmanville Recreation Centre. The South Bowmanville Recreation Centre project was paused in 2023 with the funds to be redirected for use in other recreational amenities. 7. Draft Annual Financial Report 7.1 A growing trend in municipal finance is the preparation of annual financial reports, which provide more information for stakeholders than simply financial statements. These documents provide narrative information, charts, graphs, five-year historical trends, and financial discussion and analysis. This data is intended to show a greater picture of the activity of the municipality during the year and provides context for the financial operations of the Municipality that may not be seen in a financial statement that only looks at year -over -year changes. 7.2 The Financial Discussion and Analysis section of the report provides an explanation on variances year -over -year for areas with significant changes. Page 359 Municipality of Clarington Report FSD-030-23 Page 10 7.3 The Annual Financial Report will be provided to Council during the summer, after the ratification of the financial statements and final drafting of the report. The Report will then be placed on the Municipality's website for public consumption. 8. Concurrence Not Applicable. 9. Conclusion It is respectfully recommended that the financial statements for the Municipality and its components be approved, that Staff be authorized to sign the final letters to complete the audit, and that Staff be directed to finalize the Annual Financial Report with the approved financial statements. Staff Contact: Michelle Pick, CPA, CGA, Accounting Services Manager/Deputy Treasurer, 905-623-3379 ext.2605 or mpick@clarington.net. Attachments: Attachment 1 — Draft Financial Statements for the Board of Management for Historic Downtown Bowmanville Business Improvement Area for the year ending December 31, 2022 Attachment 2 — Draft Financial Statements for the Board of Management for the Newcastle Central Business District Improvement Area for the year ending December 31, 2022 Attachment 3 — Draft Financial Statements for the Board of Management for the Orono Central Business District Improvement Area for the year ending December 31, 2022 Attachment 4 — Draft Financial Statements for the Municipality of Clarington Trusts for the year ending December 31, 2022 Attachment 5 — Draft Consolidated Financial Statements for the Municipality of Clarington for the year ending December 31, 2022 Interested Parties: The following interested parties will be notified of Council's decision: ti1CI1—fl 19 • Ministry of Municipal Affairs and Housing Page 360 Attachment 1 to Report FSD-030-23 If this information is required in an alternate format, please contact the Accessibility Coordinator at (905) 623-3379 ext. 2131. Financial statements of The Corporation of the Municipality of Clarington Board of Management for Historic Downtown Bowmanville Business Improvement Area December 31, 2022 *'V Page 361 Attachment 1 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for the Historic Downtown Bowmanville Business District Improvement Area Notes to the financial statements December 31, 2022 Table of contents Independent Auditor's Report............................................................... 1-2 Statement of financial position ............................................. ..F ........................ 3 Statementof operations........................................................................................ 4 Statement of change in net financial assets ........................................................... 5 Statement of cash flows ..................... r. 6 Notes to the financial statements ....... .. ...................................................................... 7 Page 362 Attachment 1 to Report FSD-030-23 Independent Auditor's Report To the Members of the Corporation of the Municipality of Clarington Board of Management for Historic Downtown Bowmanville Business Improvement Area, Members of Council, Inhabitants and Ratepayers of the Corporation of the Municipality of Clarington Qualified Opinion We have audited the accompanying financial statements of the Historic Downtown Bowmanville Business Improvement Area of the Corporation of the Municipality of Clarington (the Entity), which comprise the statement of financial position as at December 31, 2022, and the statements of operations, changes in net financial assets and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements present fairly, in all material respects, the financial position of the Entity as at December 31, 2022, and its results of operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Qualified Opinion The Entity derives revenue from fundraising activities the completeness of which is not susceptible to satisfactory audit verification. Accordingly, verification of these revenues was limited to the amounts recorded in the records of the Entity. Therefore, we were not able to determine whether any adjustments might be necessary to event and donation revenue, annual surplus, and cash flows from operations for the years ended December 31, 2022 and 2021, net financial assets as at December 31, 2022 and 2021, and accumulated surplus as at January 1 and December 31 for both the 2022 and 2021 years. Our audit opinion on the financial statements for the year ended December 31, 2021 was modified accordingly because of the possible effects of this limitation in scope. We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Page 363 Attachment 1 to Report FSD-030-23 In preparing the financial statements, management is responsible for assessing the Entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Entity's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Entity to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Chartered Professional Accountants, Licensed Public Accountants Lindsay, Ontario June 19, 2023 Page 364 Attachment 1 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for Historic Downtown Bowmanville Business Improvement Area Statement of Financial Position as at December 31, 2022 2022 t021 Calk Financial assets Cash and cash equivalents 62,034 51,262 Accounts receivable - t7 HST receivable 6,481 5,141 Total financial assets 68,515 56,403 Liabilities Accounts payable 8 5,997 Total liabilities 8 5,997 Net financial assets 68,507 50,406 Accumulated surplus (deficit) 68,507 50,406 The accompanying notes are an integral part of these financial statements. Page 3 Page 365 Attachment 1 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for Historic Downtown Bowmanville Business Improvement Area Statement of Operations as at December 31, 2022 Budget 2022 0� Revenues Taxation - Municipality of Clarington 171,625 171-,625 167,439 Grant - Municipality of Clarington 13,948 Interest 198 Fundraising 6,000 51,090 3,545 Total revenues 177,625 222,715 185,130 Expenses �X000 Administration 5,176 4,743 Events and promotion 88,799 104,143 114,305 Salaries and wages 78,200 60,150 61,400 Streetscape 29,500 35,145 24,519 Capital works apt 6,300 - - Total expenses 215,799 204,614 204,967 Annual surplus (deficit) llllhk� `-N IF (38,174) 18,101 (19,837) Accumulated surplus, beginning of year 50,406 50,406 70,243 Accumulated surplus (deficit), end of year 12,232 68,507 50,406 The accompanying notes are an integral part of these financial statements. Page 4 Page 366 Attachment 1 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for Historic Downtown Bowmanville Business Improvement Area Statement of Change in Net Financial Assets as at December 31, 2022 1 T Budget 2022 Annual surplus (deficit) (38,174) 18,101 ` (19,837) Change in prepaid expenses - - - Change in net financial assets (38,174) 18,101 (19,837) Net financial assets, beginning of year 50,406 50,406 70,243 Net financial assets (liabilities), end of ye 12,232 68,507 50,406 The accompanying notes are an integral part of these financial statements. Page 5 Page 367 Attachment 1 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for Historic Downtown Bowmanville Business In Area Statement of Cash Flows for the year ended December 31, 2022 2022 $ VN $ Operating activities Annual surplus 18,101 (19,837) Changes in non -cash operating items Decrease (increase) due from Government of Canada (1,340) 388 Increase (decrease) in accounts payable and accrued IiabilitiE (5,989) 5,979 10,772 (13,470) Net increase in cash Cash, beginning of year 10,772 (13,470) 51,262 64,732 Cash, end of year 62,034 51,262 The accompanying notes are an integral part of these financial statements. Page 368 Page 6 Attachment 1 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for the Historic Downtown Bowmanville Business District Improvement Area Notes to the financial statements December 31, 2022 The Corporation of the Municipality of Clarington Board of Management for Historicb. Downtown Bowmanville Business Improvement Area is a Municipal Local Board (the "Board") in the Province of Ontario, Canada. It conducts its operations guided by the provisions of provincial statutes such as the Municipal Act and related legislation. 1. Significant accounting policies OVA The financial statements of the Board are the representations of management prepared in accordance with Canadian public sector accounting standards ("PSAS"). The focus of the financial statements is on the financial position of the Board and the changes thereto. The Statement of Financial Position includes the assets and liabilities of the Board. Financial assets are those assets which could provide resources to discharge existing liabilities or finance future operations. Non -financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. Accumulated surplus represents the difference between assets and liabilities of the Board. This provides information about the Board's overall future revenue requirements and its ability to finance operations and meet its obligations. a) Revenue recognition Taxation revenue is recorded when earned and is based on a special assessment. Other revenues are recorded in the period in which transactions or events occurred that gave rise to the revenues. b) Use of estimates The preparation of financial statements in conformity with PSAS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. Actual results could differ from those estimates. c) Cash and cash equivalents Cash and cash equivalents are made up of cash held in financial institutions as well as temporary investments with maturities of 90 days or less. Page 7 Page 369 Attachment 2 to Report FSD-030-23 If this information is required in an alternate format, please contact the Accessibility Coordinator at (905) 623-3379 ext. 2131 A\ Financial statements ofej'qxj The Corporation of the Municipality of Clarington Board of Management for the Newcastle Central Business District Improvement Area December 31, 2022 Page 370 Attachment 2 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for the Newcastle Central Business District Improvement Area Notes to the financial statements December 31, 2022 • Table of contents A\ qj Independent 's Re port ............................................................�.................................1-2 p Statement of financial position .......................................... ........`...................................3 Statement of operations........................................................................................................4 Statement of change in net financial asset ..... ................................................................5 Statement of cash flows ..........t........................................................ 6 Notes to the financial statements.......................................................................................... 7 00 Page 371 Attachment 2 to Report FSD-030-23 Independent Auditor's Report To the Members of the Corporation of the Municipality of Clarington Board of Management for the Newcastle Central Business District Improvement Area, Members of Council, Inhabitants and Ratepayers of the Municipality of Clarington Qualified Opinion n! We have audited the accompanying financial statements of the Newcastle Central Business District Improvement Area of the Corporation of the Municipality of Clarington (the Entity), which comprise the statement of financial position as at December 31, 2022, and the statements of operations, changes in net financial assets and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements present fairly, in all material respects, the financial position of the Entity as at December 31, 2022, and its results of operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Qualified Opinion ♦ 70 The Entity derives revenue from fundraising activities the completeness of which is not susceptible to satisfactory audit verification. Accordingly, verification of these revenues was limited to the amounts recorded in the records of the Entity. Therefore, we were not able to determine whether any adjustments might be necessary to event and donation revenue, annual surplus, and cash flows from operations for the years ended December 31, 2022 and 2021, net financial assets as at December 31, 2022 and 2021, and accumulated surplus as at January 1 and December 31 for both the 2022 and 2021 years. Our audit opinion on the financial statements for the year ended December 31, 2021 was modified accordingly because of the possible effects of this limitation in scope. We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Page 372 Attachment 2 to Report FSD-030-23 In preparing the financial statements, management is responsible for assessing the Entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Entity's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Entity to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Chartered Professional Accountants, Licensed Public Accountants Lindsay, Ontario June 19, 2023 Page 373 Attachment 2 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for the Newcastle Central Business District Improvement Area Statement of financial position as at December 31, 2022 2022 2021 Financial assets Cash 76,716 63,226 Accounts receivable 100 70 Total financial assets 76,816 63,296 Liabilities Accounts payable 4kV 615 1,130 Deferred revenue - - Total liabilities NO 615 1,130 Net financial assets (liabilities) 76,201 62,166 Accumulated surplus (deficit) 76,201 62,166 The accompanying notes are an integral part of these financial statements. Page 3 Page 374 Attachment 2 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for the Newcastle Central Business District Improvement Area Statement of operations for the year ended December 31, 2022 2022 2021 Budget Actual Actual Revenues Taxation - Municipality of Clarington 40,000 40,000 40,000 Grant - Municipality of Clarington 16,548 Grant - Government of Canada Fundraising 32,977 70 Transfer from Municipality of Clarington 25,000 Miscellaneous Total revenues 40,000 72,977 81,618 Expenses Administration 2,000 4,086 4,689 Advertising 10,000 9,309 4,996 Events 5,000 28,903 9,091 Downtown safety and decor 23,000 16,644 33,653 Total expenses 40,000 58,942 52,429 Annual surplus (deficit) - 14,035 29,189 Accumulated surplus, beginning of year 62,166 62,166 32,977 Accumulated surplus, end of year 62,166 76,201 62,166 The accompanying notes are an integral part of these financial statements. Page 4 Page 375 Attachment 2 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for Newcastle Central Business District Improvement Area Statement of change in net financial assets as at December 31, 2022 Budget 2022 2021 Annual surplus (deficit) - 14,035 29,189 Change in net financial assets Net financial assets, beginning of year - 62,166 14,035 62,166 29,189 32,977 Net financial assets (liabilities), end of year 62,166 76,201 62,166 The accompanying notes are an inegral part of these financial statements. Page 376 Page 5 Attachment 2 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for the Newcastle Central Business District in Area Statement of cash flows for the year ended December 31, 2022 Operating activities Annual surplus Non cash items Amortization of tangible capital assets Changes in non -cash operating items Decrease (increase) in accounts receivable Increase (decrease) in accounts payable and accrued IiabilitiE Increase (decrease) in deferred revenue 2022 $ N46 14,035 4,189 '.._j - (30) 1,132 (515) 1,130 - (2,000) 13,490 29,451 Capital activity Acqusition of tangible capital assets - - Net increase in cash Cash, beginning of year 13,490 29,451 63,226 33,775 Cash, end of year 76,716 63,226 The accompanying notes are an integral part of these financial statements. Page 377 Page 6 Attachment 2 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for the Newcastle Central Business District Improvement Area Notes to the financial statements December 31, 2022 The Corporation of the Municipality of Clarington Board of Management for the Newcastle Central Business District Improvement Area is a Municipal Local Board ino Province of Ontario, Canada. It conducts its operations guided by the provisions o provincial statutes such as the Municipal Actand related legislation. 1. Significant accounting policies The financial statements of the Board are the representations of management prepared in accordance with Canadian public sector accounting standards ("PSAS"). The focus of the financial statements is on the financial position of the Board and the changesthereto. The Statement of Financial Position includes the assets and liabilities of the Board. Financial assets are those assets which could provide resources to discharge existing liabilities orfinance future operations. Non -financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations. Accumulated surplus represents the difference between assets and liabilities of the Board. This provides information about the Board's overall future revenue requirements and its ability to finance operations and meet its obligations. a) Revenue recognition _ff Taxation revenue is recorded when earned and is based on a special assessment. Other revenues are recorded in the period in which transactions or events occurred that gave rise to the revenues. b) Use of estimates The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. Actual results could differfrom those estimates. c) Cash and cash equivalents Cash and cash equivalentsare made upof cash held in financial institutions as well as temporary investments with maturities of 90 days or less. Page 7 Page 378 Attachment 3 to Report FSD-030-23 If this information is required in an alternate format, please contact the Accessibility Coordinator at (905) 623-3379 ext. 2131. A\ Financial statements of The Corporation of the Municipality of Clarington Board of Managemel ki w the Orono Central Business District Improvement Area December 31, 2022 Page 379 Attachment 3 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for the Orono Central Business District Improvement Area December 31, 2022 Table of contents Independent Auditor's Report......................................................................... �.................1-2 In_ Statement of financial position Statement of operations.................................................... ................................................4 Statement of change in net financial assets........................................................................... 5 NOStatement of cash flows ...........................................................................6 Notes to the financial statements........q ........................................................................................... 7 Page 380 Attachment 3 to Report FSD-030-23 Independent Auditor's Report To the Members of the Corporation of the Municipality of Clarington Board of Management for Orono Central Business District Improvement Area, Members of Council, Inhabitants and Ratepayers of the ,' Municipality of Clarington Qualified Opinion We have audited the accompanying financial statements of the Orono Central Business District Improvement Area of the Corporation of the Municipality of Clarington (the Entity), which comprise the statement of financial position as at December 31, 2022, and the statements of operations, changes in net financial assets and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements present fairly, in all material respects, the financial position of the Entity as at December 31, 2022, and its results of operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Qualified Opinion The Entity derives revenue from fundraising activities the completeness of which is not susceptible to satisfactory audit verification. Accordingly, verification of these revenues was limited to the amounts recorded in the records of the Entity. Therefore, we were not able to determine whether any adjustments might be necessary to event and donation revenue, annual surplus, and cash flows from operations for the years ended December 31, 2022 and 2021, net financial assets as at December 31, 2022 and 2021, and accumulated surplus as at January 1 and December 31 for both the 2022 and 2021 years. Our audit opinion on the financial statements for the year ended December 31, 2021 was modified accordingly because of the possible effects of this limitation in scope. We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Page 381 Attachment 3 to Report FSD-030-23 In preparing the financial statements, management is responsible for assessing the Entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Entity's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Entity to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Chartered Professional Accountants, Licensed Public Accountants Lindsay, Ontario June 19, 2023 Page 382 Attachment 3 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for the Orono Central Business District Improvement Area Statement of Financial Position ` as at December 31, 2022 2022 2021 Financial assets Cash and cash equivalents 10,966 ' 113, Accounts receivable 260 - Total financial assets 11,226 13,601 Liabilities 0 Accounts payable 3,574 964 Total liabilities 3,574 964 Net financial assets 7,652 12,637 Accumulated surplus (deficit) 7,652 12,637 The accompanying notes are an integral part of these financial statements. Page 383 Page 3 Attachment 3 to Report FSD-030-23 The Corporation of the Municipality of Claringtoi Board of Management for the Orono Central Business District Improvement Area Statement of Operations for the year ended December 31, 2022 Budget 2022 2 Revenues Taxation - Municipality of Clarington (Note 1) 6,000 /N0 6,000 Grants - Municipality of Clarington - - 1,504 Grants - Other - 6,804 3,670 Donations/fundraising/miscellaneous - 9,462 - Total revenues 6,000 22,266 11,174 Expenses Advertising and promotion 6,400 10,284 1,601 Landscaping 4,000 15,215 18,531 Miscellaneous 1,400 1,752 1,527 Total expenses 11,800 27,251 21,659 Annual surplus (deficit) (5,800) (4,985) (10,485) Accumulated surplus, beginning of year 12,637 12,637 23,122 Accumulated surplus, end of year 6,837 7,652 12,637 The accompanying notes are an integral part of these financial statements. J� Page 4 Page 384 Attachment 3 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for Orono Central Business District Improvement Area Statement of Change in Net Financial Assets as at December 31, 2022 Budget 2022 2021 Annual surplus (deficit) (5,800) (4,985) (10,485) Net financial assets, beginning of year 12,637 12,637 23,122 Net financial assets (liabilities), end of year 6,837 7,652 12,637 The accompanying notes are an integral part of these financial statements. Page 385 Page 5 Attachment 3 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for the Orono Central Business District Improvement Area Statement of Cash Flows for the year ended December 31, 2022 2022 2021 Operating activities Annual surplus (4,985) (10,485) Non cash items Amortization of tangible capital assets - - Changes in non -cash operating items 0 Decrease (increase) in accounts receivable (260) - Increase (decrease) in accounts payable and accrued liabilities 2,610 884 (2,635) (9,601) Capital activity Acqusition of tangible capital assets - - Net increase in cash (2,635) (9,601) Cash, beginning of year 13,601 23,202 Cash, end of year 10,966 13,601 The accompanying notes are an integral part of these financial statements. Page 386 Page 6 Attachment 3 to Report FSD-030-23 The Corporation of the Municipality of Clarington Board of Management for the Orono Central Business District Improvement Area Notes to the financial statements December 31, 2022 *k The Corporation of the Municipality of Clarington Board of Management for the Orono W) Central Business District Improvement Area is a Municipal Local Board in the Province of Ontario, Canada. It conducts its operations guided by the provisions of provincial statutes such as the Municipal Act and related legislation. 1. Significant accounting policies The financial statements of the Board are the representations of management prepared in accordance with Canadian public sector accounting standards ("PSAS"). The focus of the financial statements is on the financial position of the Board and the changes thereto. The Statement of Financial Position includes the assets and liabilities of the Board. Financial assets are those assets which could provide resources to discharge existing liabilities or finance future operations. Non -financial assets are not available to discharge existing liabilities and are held for use in the provision of services. they have useful lives extending beyond the current year and are not intendeTrirsale in the ordinary course of operations. Accumulated surplus represents the difference between assets and liabilities of the Board. This provides information about the Board's overall future revenue requirements and its ability to finance operations and meet its obligations. a) Revenue recognition Taxation rrevenuE is recorded when earned and is based on a special assessment. Other revenues are recorded in the period in which transactions or events occurred that gave rise to the revenues. b) Use of estimates SThe preparation of financial statements in conformity with PSAS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. Actual results could differfrom those estimates. c) Cash and cash equivalents Cash and cash equivalents are made up of cash held in financial institutions as well as temporary investments with maturities of 90 days or less. Page 7 Page 387 Attachment 4 to Report FSD-030-23 If this information is required in an alternate format, please contact the Accessibility Co-Ordinatorat (905) 623-3379 ext. 2131 *C Financial statements of The Corporation of the Municipality of Clarington Trust Funds December 31, 2022 1W , 00 Attachment 4 to Report FSD-030-23 The Corporation of the Municipality of Clarington Trust Funds December 31, 2022 Table of contents Independent Auditor's Report............................................................................................1 0 Statement of financial position..............................................................................�...�i��.�.. 4 Statement of operations...................................................................................... ............. 5 Notes to the financial statements.......................................................... ...... .................... 6-7 Page 389 Attachment 4 to Report FSD-030-23 Independent Auditor's Report To the Members of Council of the Corporation of the Municipality of Clarington ` Opinion We have audited the financial statements of the Corporation of the Municipality of Clarington Trust Funds (the Entity), which comprise the statement of financial position as at December 31, 2022, and the statement of operations and accumulated surplus for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Entity as at December 31, 2022, and its operations for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion kv We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements *&� `J i Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Entity's financial reporting process. o�� Page 390 Attachment 4 to Report FSD-030-23 Auditor's Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Entity to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. k*N Chartered Professional Accountants, Licensed Public Accountants Lindsay, Ontario June 19, 2023 Page 391 Attachment 4 to Report FSD-030-23 The Corporation of the Municipality of Clarington Trust Funds Statement of financial position as at December 31, 2022 Investments Interest revenue Cash (Note 3) receivable Due (to) from Municipality of Clarington Net Financial Assets and Accumulated Surplus Advent Cemetery - 918 3 - 921 Bondhead Cemetery - 236,243 818 1,937 238,998 Bowmanville Cemetery - 1,300,505 4,503 2,188 1,307,196 Hampton Cemetery - 50,048 173 - 50,221 Lovekin Cemetery- 10 000 35 - 10 035 , Orono Cemetery - 300,490 9,102 - 309,592 St. George's Cemetery - 49,13 170 - 49,300 Trulls Cemetery - 1, 6 - 1,780 Vanderveer Legacy Trust - 0 3 - 1,003 - 1,950,108 14,813 4,125 1,969,046 Montague Trust - 10,775 294 - 11,069 Estate of Irene Rinch/Newcastle Community Hall - 147,925 4,040 - 151,965 Total - 2022 - 2,108,808 19,147 4,125 2,132,080 Total - 2021 2,020,448 15,568 The accompanying notes are an integral part of these financial statements. Page 392 2,006,827 Page 4 Attachment 4 to Report FSD-030-23 The Corporation of the Municipality of Clarington Trust Funds Statement of operations and accumulated surplus as at December 31, 2022 Revenues Care and Balance maintenance Less: Excess (shortfall) Accumulated beginning of receipts Interest Contribution Investments of revenues over surplus, end year (Note 4) earned Total to cemeteries in Capital expenses of year Advent Cemetery 897 22 14 36 12 - 24 921 Bondhead Cemetery 220,415 20,782 913 21,695 3,112 - 18,583 238,998 Bowmanville Cemetery 1,239,593 60,692 24,411 85,103 17,500 - 67,603 1,307,196 Hampton Cemetery 50,886 (819) 832 13 678 - (665) 50,221 Lovekin Cemetery 9,960 44 166 210 135 - 75 10,035 Orono Cemetery 270,036 39,135 ril766 40,901 1,345 - 39,556 309,592 St. George's Cemetery 46,474 2,676 r 816 3,492 666 - 2,826 49,300 Trulls Cemetery 1,758 16 30 46 24 - 22 1,780 Vanderveer Legacy Trust 976 24 17 41 14 - 27 1,003 1,840,995 122,572 28,965 151,537 23,486 - 128,051 1,969,046 Montague Trust 13,445 - 288 288 2,664 - (2,376) 11,069 Estate of Irene Rinch 152,387 - 3,959 3,959 4,381 - (422) 151,965 Total - 2022 2,006,827 122,572 33,212 155,784 30,531 - 125,253 2,132,080 Total - 2021 1,933,011 79,417 15,660 95,077 21,261 - 73,816 2,006,827 The accompanying notes are an integral part of these financial statements Page 393 Page 5 Attachment 4 to Report FSD-030-23 The Corporation of the Municipality of Clarington Trust Funds Notes to the financial statements December 31, 2022 The Corporation of the Municipality of Clarington Trust Funds consist of various trust fu nds administered by the Municipality of Clarington. The funds include holdings relate to the care and maintenance of cemeteries and funds bequest to the Newcastle Community Hall. Significant accounting policies The financial statements of the Corporation of Municipality of Clarington Trust Funds are the representations of management prepared in accordance with Canadian public sector accounting standards and reflect the following policies: Basis of accounting Revenues are recorded in the period in which the transactions or events occurred that gave rise to the revenue. Expenditures are recorded in the period the goods and services are acquired and a liability is incurred. Refunds are reported in the period issued. Investments Investments are recorded at a cost which approximates fairvalue. Use of estimates C % The preparation of the financial statements in conformity with Canadian public sector accounting standards, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amountof revenues and expenditures during the year. Actual results could differ from these estimates. 2. Statement of cash flows A statement of cash flows has not been included in these financial statements as the information is readily determinable from the financial statements presented. 3. Investments The total investments held by the trust funds of $2,108,808 (2021—$2,020,448) reported on the Statement of Financial Position at cost have a fair value of $2,123,103 (2021 - $2,024,124) at the end of the year. The investments consist of holdings pursuant to the provisions of the Municipality's investment policy and comprise government bonds and guaranteed investment certificates (GICs) issued by various financial institutions. It is the Municipality's intention to hold these investments until maturity. Page 6 Page 394 Attachment 4 to Report FSD-030-23 The Corporation of the Municipality of Clarington Trust Funds Notes to the financial statements December 31, 2022 4. Care and maintenance funds The Care and Maintenance Funds administered by the Municipality are funded by the sale of cemetery plots. These funds are invested, and the interest earned is used to perform care and maintenance to the Municipality's cemeteries. The operations and investments of the Funds are undertaken by the Municipali it accordance with the regulations of the Cemeteries Act. Page 7 Page 395 Attachment 5 to Report FSD-030-23 If this information is required in an alternate format, please contact the Accessibility Co-ordinator at 905-623-3379 ext. 2131 The Corporation of the Municipality of Clarington Consolidated Financial Statements December 31, 2022 Page 396 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington December 31, 2022 Table of Contents Page Consolidated Financial Statements Management's Responsiblity for the Consolidated Finanacial Statements 1 Independent Auditor's Report Consolidated Statement of Financial Position Consolidated Statement of Operations Consolidated Statement of Change in Net Financial Assets Consolidated Statement of Cash Flows Notes to the Consolidated Financial Statements 2-3 4 5 6 7 8-29 Consolidated Schedule of Tangible Capital Assets - Schedule 1 30 - 31 Consolidated Schedule of Segmented Information - Actual - Schedule 2 32 - 33 Consolidated Schedule of Segmented Information - Budget - Schedule 3 34 - 35 Page 397 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington December 31, 2022 Management's Responsibility for the Consolidated Financial Statements The accompanying consolidated financial statements of the Corporation of the Municipality of Clarington are the responsibility of the Municipality's management and have been prepared in accordance with Canadian public sector accounting standards. The preparation of the financial statements necessarily involves the use of estimates based on management's judgment, particularly when transactions affecting the current accounting period cannot be finalized with certainty until future periods. The Corporation maintains a system of internal controls designed to provide reasonable assurance that the financial information is relevant, reliable, and accurate, that transactions are properly authorized, and the Corporation's assets are properly accounted for and adequately safeguarded. The financial statements have been examined by BDO Canada LLP, Chartered Professional Accountants, the external auditors for the Corporation. The responsibility of the external auditor is to express an opinion on whether the financial statements are fairly presented, in all material respects, in accordance with Canadian public sector accounting standards. Council, through the Audit and Accountability Committee, is responsible for ensuring that management fulfills its responsibility for financial reporting and internal control. The Audit and Accountability Committee meets periodically with management, as well as the external auditors to satisfy itself that each party is properly discharging its responsibilities with respect to internal controls and financial reporting. The Audit and Accountability Committee meets with management and the external auditor to review the consolidated financial statements and discuss any significant financial reporting or internal control matters prior to their approval of the consolidated financial statements. Trevor Pinn, CPA, CA Michelle Pick, CPA, CGA Deputy CAO / Treasurer Accounting Services Manager / Deputy Treasurer June 19, 2023 June 19, 2023 Page 398 Attachment 5 to Report FSD-030-23 Independent Auditor's Report To the Members of Council of the Corporation of the Municipality of Clarington ` Opinion ♦�� We have audited the consolidated financial statements of the Corporation of the Municipality of Clarington and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at December 31, 2022, and the consolidated statement of operations, the consolidated statement of change in net assets and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2022, and its consolidated results of operations, its consolidated change in net financial assets, and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. 1 Those charged with governance are responsible for overseeing the Group's financial reporting process. ) 1W Page 2 2 Page 399 Attachment 5 to Report FSD-030-23 Auditor's Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee considered material if, individually or in the aggregate, they could reasonably be expected to influence — the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Chartered Professional Accountants, Licensed Public Accountants Lindsay, Ontario June 19, 2023 Page 3 3 Page 400 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Consolidated Statement of Financial Position As at December 31, 2022 2022 2021 Financial assets Cash and cash equivalents $ 66,161,067 $ 77,658,903 Investments (Note 4) 158,112,846 96,426,970 Accounts receivable 11,429,392 7,838,504 Taxes receivable (Note 5) 10,394,135 8,785,220 Inventories for resale 9,636 29,707 Inventory - surplus land 146,349 146,349 Promissory notes receivable (Note 6) 8,321,000 8,321,000 Investment in Elexicon Corporation (Note 7) 20,258,934 19,145,126 Total financial assets 274,833,359 218,351,779 Liabilities Accounts payable and accrued liabilities 11,115,311 9,298,615 Employee future benefits liabilities (Note 8) 9,902,896 9,542,139 Debenture debt (Note 10) 32,312,792 7,686,715 Deferred revenue - general 21,443,515 17,445,864 Deferred revenue - obligatory reserve funds (Note 12) 82,188,877 69,404,094 Total liabilities 156,963,391 113,377,427 Net financial assets 117,869,968 104,974,352 Non -financial assets Investment in tangible capital assets (Note 18) (Schedule 1) Prepaid expenses Inventory supplies 461,450,953 2,077,729 674,008 461,278,530 908,604 582,214 Total non -financial assets 464,202,690 462,769,348 Accumulated surplus (Note 19) $582,072,658 $567,743,700 Contingencies (Note 14) and Contractual Commitments (Note 15) The accompanying notes are an integral part of these consolidated financial statements. 4 Page 401 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Consolidated Statement of Operations For the year ended December 31, 2022 2022 2022 2021 Budget Actual Actual (Note 21) Revenues Taxation and user charges Property taxation $ 69,595,132 $ 69,694,792 $ 66,928,003 Taxation from other governments 4,702,049 4,766,210 4,683,341 User charges 10,266,601 13,387,305 9,608,832 Grants Government of Canada - 597,534 367,458 Province of Ontario 134,481 996,099 3,081,368 Other Deferred revenue earned 18,909,308 8,660,096 12,296,143 Investment income 386,563 5,452,665 2,629,395 Penalty and interest on taxes 1,450,000 1,571,377 1,582,534 Fines 299,375 427,488 312,578 Donations and contribution from others 15,130 471,647 1,566,684 Elexicon Corporation Equity share of net income - 1,959,096 1,617,475 Contributed tangible capital assets 7,524,869 7,524,869 2,425,232 Other income - 6,299 1,004,257 Loss on disposal of tangible capital assets - (271,569) (352,699) Total revenue 113,283,508 115,243,908 107,750,601 Expenses General government services 7,985,575 8,094,774 6,411,011 Protection services 22,223,728 20,758,814 19,933,461 Transportation services 34,331,827 32,271,115 31,321,742 Enviromental services 3,777,492 3,734,759 3,334,134 Health services 629,753 672,259 520,247 Recreation and cultural services 28,798,491 28,938,043 25,413,530 Planning and development services 6,286,730 6,445,186 5,703,383 Total expenses 104,033,596 100,914,950 92,637,508 Annual surplus 9,249,912 14,328,958 15,113,093 Accumulated surplus, beginning of year 567,743,700 567,743,700 552,630,607 Accumulated surplus, end of year $576,993,612 $582,072,658 $567,743,700 The accompanying notes are an integral part of these consolidated financial statements. 5 Page 402 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Consolidated Statement of Change in Net Financial Assets For the year ended December 31, 2022 Annual surplus Amortization of tangible capital assets Acquisition of tangible capital assets Investment in assets under construction Assets under construction transferred to tangible capital assets Net book value of tangible capital assets disposals / adjustments 2022 2022 Budget Actual 2021 Actual $ 9,249,912 $ 14,328,958 $ 15,113,093 21,943,590 (99,030,540) 22,803,898 (25,733,309) (8,986,977) 11,201,368 542,597 21,567,993 (16,232,109) (9,843,572) 6,931,129 390,901 (Decrease) Increase in prepaid expenses - (1,169,125) 63,667 Decrease in inventory supplies - (91,794) (119,906) Increase(decrease) in net financial assets (67,837,038) 12,895,616 17,871,196 Net financial assets, beginning of year 104,974,352 104,974,352 87,103,156 Net financial assets, end of year $ 37,137,314 $117,869,968 $104,974,352 The accompanying notes are an integral part of these consolidated financial statements. 6 Page 403 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Consolidated Statement of Cash Flows For the year ended December 31, 2022 Operating activities Annual surplus Non cash items Amortization of tangible capital assets Loss on disposal of tangible capital assets Equity share of Elexicon Corporation net income Contributed tangible capital assets recorded in revenue Change in non -cash operating items Accounts receivable Taxes receivable Inventories for resale Inventory of land for resale Accounts payable and accrued liabilities Employee future benefits liabilities Deferred revenue - general Deferred revenue - obligatory reserve funds 2022 2021 $ 14,328,958 $ 15,113,093 22,803,898 21,567,993 271,569 352,699 (1,959,096) (1,617,475) (7,524,869) (2,425,232) (3,590,888) 1,251,594 (1,608,915) (247,079) 20,071 499 - 75,000 1,816,696 (2,187,446) 360,757 478,182 3,997,651 2,998,330 12,784,783 7,968,447 Prepaid expenses (1,169,122) 63,667 Inventory supplies (91,794) (119,906) 40,439,699 43,272,366 Capital activities Acquisition of tangible capital assets (net of contributed) (15,994,053) (16,719,320) Proceeds on disposal of tangible capital assets 271,028 38,202 (15,723,025) (16,681,118) Investing activities Increase in investments (61,685,876) (27,146,372) Dividends received from Elexicon Corporation 845,288 1,053,347 (60,840,588) (26,093,025) Financing activities Repayment of long term liabilities (1,775,922) (1,858,842) Proceeds of debenture issue 26,402,000 - 24,626,078 (1,858,842) Net decrease, of cash and cash equivalents (11,497,836) (1,360,619) Cash and cash equivalents, beginning of year 77,658,903 79,019,522 Cash and cash equivalents, end of year $ 66,161,067 $ 77,658,903 The accompanying notes are an integral part of these consolidated financial statements. 7 Page 404 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 The Municipality of Clarington (the "Municipality") is a municipality in the Province of Ontario, Canada. It conducts its operations guided by the provisions of provincial statutes such as the Municipal Act, the Municipal Affairs Act and related legislation. 1. Significant accounting policies The consolidated financial statements of the Municipality are the representations of management prepared in accordance with Canadian Public Sector Accounting Standards ("PSAS"). a. Significant accounting policies adopted are as follows: Reporting entity These consolidated financial statements reflect financial assets, liabilities, operating revenues and expenses, and the changes in investment in tangible capital assets of the Municipality of Clarington. The reporting entity is comprised of all organizations, local boards and committees controlled by the Municipality, including the following: - Board of Management for the Historic Downtown Bowmanville Business Improvement Area - Board of Management for the Newcastle Central Business District Improvement Area - Board of Management for the Orono Central Business District Improvement Area - Clarington Public Library Board and Clarington Museums and Archives - Newcastle Arena Board - Newcastle Community Hall Board - Solina Hall Board - Tyrone Community Hall Board - Bowmanville Santa Claus Parade Committee - Clarington Heritage Committee All material inter -entity transactions and balances are eliminated on consolidation. ii. Investment in Elexicon Corporation The Municipality of Clarington, along with the City of Pickering, the Town of Ajax, and the City of Belleville own 68% of Elexicon Corporation. The Town of Whitby owns the remaining 32% of Elexicon Corporation. The Municipality of Clarington holds a 9.248% share of ownership. The Municipality's investment in Elexicon Corporation and its subsidiaries is accounted for on a modified equity basis, consistent with generally accepted accounting principles as recommended by PSAS for investments in government business partnerships. Under the modified equity basis of accounting, the business partnership's accounting principles are not adjusted to conform to those of the Municipality and inter - organizational transactions and balances are not eliminated. The Municipality recognizes its equity interest in the annual income or loss of Elexicon Corporation in its "Consolidated Statement of Operations" with a corresponding increase or decrease in its investment asset account. Any dividends that the Municipality may receive from 8 Page 405 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 1. Significant accounting policies (continued) a. Significant accounting policies adopted are as follows: (continued) ii. Investment in Elexicon Corporation (continued) Elexicon Corporation and other capital transactions will be reflected as adjustments in the investment asset account. iii. Accounting for region and school board transactions The taxation and other revenues, expenses, assets and liabilities with respect to the operations of the school boards and the Regional Municipality of Durham are not reflected in these financial statements. iv. Accounting for phase-in/capping provisions Increases/decreases in property taxes levied as a result of the application of phase- in/capping legislation are not reflected in the Consolidated Statement of Operations but are reported on the Consolidated Statement of Financial Position. V. Trust funds Trust funds and their related operations administered by the Municipality are not included in these consolidated financial statements, but are reported separately on the "Trust Funds Statement of Operations" and "Trust Funds Statement of Financial Position". b. Basis of accounting Accrual basis of accounting Revenues and expenses are reported on the accrual basis of accounting. The accrual basis of accounting recognizes revenues in the period in which transactions or events occurred that gave rise to the revenues; expenses are recognized in the period the goods and services are acquired and a liability is incurred or transfers are due. ii. Cash and cash equivalents Cash and cash equivalents are comprised of cash on hand, demand deposits and bankers acceptances, all of which are highly liquid, subject to insignificant risk of changes in value and have a short-term maturity of less than 90 days. iii. Investments Portfolio investments are carried at cost, net of accumulated amortization on premiums and discounts. Premiums and discounts are amortized on a straight line basis over the term to maturity. Interest income is recorded as it accrues. When the value of any portfolio investment is impaired, the carrying amount is adjusted to the estimated realizable amount and any adjustments are included in investment income in the period 9 Page 406 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 1. Significant accounting policies (continued) b. Basis of accounting (continued) iii. Investments (continued) the impairment is recognized. iv. Non -financial assets Non -financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year, and are not intended for sale in the ordinary course of operations. The change in non -financial assets during the year, together with the excess of revenues over expenses, provides the Changes in Net Financial Assets for the year. (a) Tangible capital assets ("TCA") Tangible capital assets are recorded at cost, which includes all amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital assets are amortized on a straight-line basis over their estimated useful lives as follows: Land improvements 20-75 years Buildings 5-75 years Vehicles 7-20 years Equipment 3-25 years Linear road and related 7-75 years Linear storm sewers 40-75 years Amortization The Municipality uses the straight line method of amortization. For pooled assets and networks such as roads and storm sewers, one half of the annual amortization is charged in the year of acquisition or in-service date and in the year of disposal. For individual assets, if acquired (or in-service) in the first half of the year, the full year of the amortization is charged. If acquired (or in-service) in the second half of the year, one half of the annual amortization is charged. Similarly in the year of disposal, if the asset is disposed of in the first half of the year, one half of the amortization is charged but if disposed of in the second half of the year the full annual amortization is charged. Assets under construction are not amortized until the asset is available for productive use, at which time they are capitalized. Contribution of tangible capital assets Tangible capital assets received as contributions are recorded at their fair value at the date received/assumed and that fair value is also recorded as revenue. 10 Page 407 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 1. Significant accounting policies (continued) b. Basis of accounting (continued) iv. Non -financial assets (continued) (b) Inventories Inventories held for consumption are recorded at the lower of cost or replacement cost. V. Reserves and reserve funds Certain amounts, as approved by Council, are set aside in reserves and reserve funds for future operating and capital purposes. Transfers to and/or from reserves and reserve funds are an adjustment to the respective fund when approved. Reserves and reserve funds form part of the Municipality's accumulated surplus. vi. Deferred revenues Deferred Revenues, which include advance payments for tickets, building permits and program registration fees; contributions from developers according to Section 37 of the Planning Act; and revenues set aside for specific purposes (obligatory reserve funds), represent fees which have been collected, but for which the related services have not yet been provided. Revenue is recognized when the related activity occurs or the service is performed. vii. Employee future benefits The present value of the cost of providing employees with future benefits programs is expensed as employees earn these entitlements through service. The cost of the benefits earned by employees is actuarially determined using the projected benefit method prorated on service and management's best estimate of retirement ages of employees and expected health care and dental costs. Actuarial gains or losses are amortized on a straight-line basis over the expected average remaining service life of all employees covered. viii. Contaminated sites Contaminated sites are the result of contamination being introduced in air, soil, water or sediment of a chemical, organic, or radioactive material or live organism that exceed an environmental standard. A liability for remediation of contaminated sites is recognized, net of any expected recoveries, when all of the following criteria are met: a) an environmental standard exists; b) contamination exceeds the environmental standard; c) the organization is directly responsible or accepts responsibility for the liability; d) future economic benefits will be given up; and e) a reasonable estimate of the liability can be made. Changes in this estimate are recorded in the Municipality's statement of operations. As of December 31, 2022, there was no liability recorded on 11 Page 408 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 1. Significant accounting policies (continued) b. Basis of accounting (continued) viii. Contaminated sites (continued) the statement. ix. Revenue Recognition Taxation Property tax billings are prepared by the Municipality based on assessment rolls issued by the Municipal Property Assessment Corporation ("MPAC"). Tax rates are established annually by Council, incorporating amounts to be raised for local services and amounts the Municipality is required to collect on behalf of the Regional Municipality of Durham and the Province of Ontario in respect of education taxes. Taxes are recorded at estimated amounts when they meet the definition of an asset, have been authorized and the taxable event occurs. For property taxes, the taxable event is the period for which the tax is levied. As taxes recorded are initially based on management's best estimate of the taxes that will be received, it is possible that changes in future conditions, such as reassessments due to audits, appeals and court decisions, could result in a change in the amount of tax revenue recognized. Taxes receivable are recognized net of an allowance for anticipated uncollectible amounts. A normal part of the assessment process is the issuance of supplementary assessment rolls which provide updated information with respect to changes in property assessment. Once a supplementary roll is received, the Municipality determines the taxes applicable and renders supplementary tax billings. Assessments of the related property taxes are subject to appeal. Any supplementary billing adjustments made necessary by the determination of such changes will be recognized in the fiscal year they are determined and the effect shared with the Region of Durham and school boards, as appropriate. Government transfers Government transfers are recognized as revenue in the financial statements when the transfer is authorized and any eligibility criteria are met, except to the extent that transfer stipulations give rise to an obligation that meets the definition of a liability. Transfers are recognized as deferred revenue when transfer stipulations give rise to a liability. Transfer revenue is recognized in the statement of operations as the stipulation liabilities are settled. Government transfers and developer contributions -in -kind related to capital acquisitions are required to be recognized as revenue in the consolidated financial statements in the period in which the tangible capital assets are acquired. 12 Page 409 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 1. Significant accounting policies (continued) b. Basis of accounting (continued) ix. Revenue Recognition (continued) User fees and service charges User charges are recognized when the services are performed or goods are delivered and there is reasonable assurance of collection. Other Other revenue is recorded when it is earned and collection is reasonably assured. Investment income Investment income earned on operating surplus funds and reserve funds (other than obligatory reserve funds) are recorded as revenue in the period earned. Investment income earned on obligatory reserve funds are recorded directly to each respective fund balance and forms part of the deferred revenue — obligatory reserve funds balance. X. Inventory for resale Inventory for resale is valued at the lower of cost or net realizable value on an average cost basis. xi. Use of estimates Since precise determination of many assets and liabilities is dependent upon future events, the preparation of periodic financial statements necessarily involves the use of estimates and approximations. These have been made using careful judgment. Actual results could differ from these estimates. 2. Trust funds Trust funds administered by the Municipality amounting to $2,132,080 (2021 — $2,006,827) have not been included in the "Consolidated Statement of Financial Position" nor have their financial activities been included in the "Consolidated Statement of Operations". 3. Operations of school boards and The Regional Municipality of Durham Further to Note 1(a)(iii), requisitions were made by the Regional Municipality of Durham and School Boards requiring the Municipality of Clarington to collect property taxes and payments in lieu of property taxes on their behalf. The amounts levied and remitted are summarized below: 13 Page 410 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 3. Operations of school boards and The Regional Municipality of Durham (continued) Regional School Municipality Boards of Durham 2022 Property taxes Taxation from other governments $ 33,318,506 184,430 $101,516,824 3,108,946 Total $ 33,502,936 $104,625,770 2021 Property taxes Taxation from other governments $ 32,531,062 83,839 $ 96,914,320 2,951,157 Total $ 32,614,901 $ 99,865,477 4. Investments Total investments of $158,112,846 (2021 - $96,426,970) reported on the Consolidated Statement of Financial Position at cost plus accrued interest, have a market value of $152,309,075 (2021 - $99,985,087 ) at the end of the year. The investments consist of investments pursuant to provisions of the Municipality's investment policy and comprise government bonds and guaranteed investment certificates (GICs) issued by various financial institutions. It is the Municipality's intention to hold these investments until maturity. 2022 Cost 2022 Market Value 2021 Cost 2021 Market Value GICs $ 61,779,802 $ 62,383,849 $ 46,840,154 $ 49,755,193 Bonds 88,890,283 82,098,502 42,362,106 41,990,209 Pooled Funds Equity 2,983,725 3,878,133 2,835,624 4,143,342 Pooled Funds Bonds 4,459,036 3,948,591 4,389,086 4,096,343 Total $158,112,846 $152,309,075 $ 96,426,970 $ 99,985,087 The Municipality holds investments with a maturity of less than 90 days, in a High Interest Savings Account. This value is reported within cash and cash equivalents, due to the highly liquid nature of these investments. Total investments, with a maturity of less than 90 days, have a value of $31,084,106 (2021 - $35,168,036) on the Consolidated Statement of Financial Position. 14 Page 411 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 5. Taxes receivable The balance in taxes receivable, including penalties and interest, is comprised of the following: 2022 2021 Current year taxes $ 7,936,311 $ 6,660,373 Previous year taxes 2,507,824 2,274,847 10,444,135 8,935,220 Allowance for uncollectible taxes (50,000) (150,000) $ 10,394,135 $ 8,785,220 6. Promissory notes receivable 2022 2021 Promissory note receivable from Elexicon Corporation due on demand and bearing interest at the Ontario Energy Board deemed long-term debt rate on an annual basis to maturity (4.13% for the current year). $ 2,355,000 $ 2,355,000 Promissory note receivable from Elexicon Energy Inc. maturing November 1, 2039 and bearing interest at the Ontario Energy Board deemed long-term debt rate on a annual basis to maturity (4.13% for the current year). 5,966,000 5,966,000 $ 8,321,000 $ 8,321,000 Interest revenue earned from these notes receivable totaled $343,657 (2021 - $343,657). The Municipality has waived its right to demand repayment of any portion of the principal of the promissory notes payable before the date of January 1, 2024. 15 Page 412 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 7. Investment in Elexicon Corporation a. Investment in Elexicon Corporation The Municipality of Clarington, along with the City of Pickering, the Town of Ajax, and the City of Belleville own 68% of Elexicon Corporation. The Town of Whitby owns the remaining 32% of Elexicon Corporation. The Municipality of Clarington holds a 9.248% share of ownership. The Municipality is accounting for this investment using a modified equity basis in these financial statements. The financial impact to the Municipality of Clarington's investment and equity are reported below. The following table provides condensed supplementary financial information of Elexicon Corporation and its subsidiaries for the year ended December 31: 2022 2021 Financial position Assets Current $ 103,438,000 $ 104,266,000 Capital and intangibles 661,146,000 584,949,000 Other 4,340,000 341,000 Regulatory balances 58,573,000 44,905,000 Total assets and regulatory balances 827,497,000 734,461,000 Liabilities Current 283,588,000 85,153,000 Long-term debt 122,513,000 258,526,000 Other 148,489,000 132,520,000 Total liabilities 554,590,000 476,199,000 Shareholders' equity Share capital 97,692,000 97,692,000 Contributed capital 25,000 25,000 Retained earnings 165,161,000 153,398,000 Regulatory balances 10,029,000 7,147,000 Total shareholders' equity and regulatory balances 272,907,000 258,262,000 Total liabilities, equity and regulatory balances 827,497,000 734,461,000 16 Page 413 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 7. Investment in Elexicon Corporation (continued) a. Investment in Elexicon Corporation (continued) 2022 2021 Financial activities Revenues 514,713,000 501,355,000 Other income 15,458,000 9,978,000 Expenses (524,157,000) (507,085,000) Net movements in regulatory balances, net of tax 15,170,000 13,242,000 Net income for the year $ 21,184,000 $ 17,490,000 b. Municipality's equity is represented by: Promissory notes receivable (Note 6) Initial investment in shares of the Corporation Accumulated net income Net increase in value of investment 2022 2021 $ 8,321,000 $ 8,321,000 10,146,495 23,691,145 400,126 10,146,495 21,732,048 400,126 Accumulated dividends received (13,978,832) (13,133,543) Total equity 28,579,934 27,466,126 Municipality of Clarington's investment represented by: Investment in Corporation 20,258,934 19,145,126 Promissory notes receivable 8,321,000 8,321,000 $ 28,579,934 $ 27,466,126 C. Contingencies and guarantees of Elexicon Corporation (the "Corporation") as disclosed in their financial statements are as follows: (i) Insurance claims The Corporation is a member of the Municipal Electric Association Reciprocal Insurance Exchange ("MEARIE") which was created on January 1, 1987. A reciprocal insurance exchange may be defined as a group of persons formed for the purpose of exchanging reciprocal contracts of indemnity or inter -insurance with each other. MEARIE provides general liability insurance to member electric utilities. MEARIE also provides vehicle and property insurance to the Corporation. 17 Page 414 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 7. Investment in Elexicon Corporation (continued) C. Contingencies and guarantees of Elexicon Corporation (the "Corporation") as disclosed in their financial statements are as follows: (continued) Insurance premiums charged to each member electric utility consist of a levy per $1,000 of service revenue subject to a credit or surcharge based on each electric utility's claims experience. The maximum coverage is $40,000,000 per occurrence, for liability insurance, $21,000,000 for vehicle insurance and $206,572,000 for property insurance and $12,000,000 for privacy, cyber, and network security insurance. (ii) Contractual obligation - Hydro One Networks Inc. The Corporation's subsidiary, Elexicon Energy Inc. (EEI), is party to a connection and cost recovery agreement with Hydro One related to the construction by Hydro One of a transformer station designated to meet EEI's anticipated electricity load growth. Construction of the project was completed during 2007 and EEI connected to the transformer station during 2008. To the extent that the cost of the project is not recoverable from future transformation connection revenues, EEI is obliged to pay a capital contribution equal to the difference between these revenues and the construction costs allocated to EEI. The construction costs allocated to EEI for the project are $19,950,000. Hydro One has performed a true -up based on actual load at the end of the tenth anniversary of the in-service date and is expected to perform a true -up based on actual load at the end of the fifteenth anniversary of the in-service date. d. Lease commitments - Elexicon Corporation Future minimum non -cancellable lease payment obligations under finance leases are as follows: 2023 $ 177,000 2024 124,000 2025 95,000 2026 71,000 2027 45,000 $ 512,000 18 Page 415 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 8. Employee future benefits liabilities a. Accumulated sick leave entitlement (i) Firefighters The Municipality provides two sick leave accumulation plans for firefighters. Plan A accumulates at the rate of one day per month of completed years of service to a maximum of 182 days. These employees may become entitled to a cash payment on retirement, early retirement, termination or death, at the rate of 50% of the accumulated credit, to a maximum of one-half a year's salary. Plan B accumulates at the rate of one day per month once the employees complete five years of service. The estimated liability at December 31, 2022 was $1,156,136 (2021 - $1,096,690). (ii) Other During the 1993 fiscal year, the Municipality negotiated an agreement with all employees (except firefighters) to terminate the sick leave benefit plan which had been in effect for many years. The Municipality agreed to pay to those employees covered by the plan and who had at least five -years' service with the Municipality a cash equivalent of 50% of sick leave days accumulated to July 1, 1993 to a maximum of 120 days of salary. Remuneration for the buying out of sick days identified will be available to the employee at any time up to the time that the employee either leaves the Corporation or retires, at the rate of remuneration in effect at July 31, 1993. The estimated liability at December 31, 2022 amounted to $20,372 (2021 - $17,154). b. Post -employment benefits - other The Municipality makes available to qualifying employees who retire before the age of 65 (firefighters - age 60) the opportunity of continuing their coverage for benefits such as medical (extended health), dental, and life insurance benefits. Coverage ceases at age 65. Dependent upon the eligibility, the cost of this coverage may be a shared responsibility between the Municipality and the retired employees. An actuarial valuation was performed as at December 31, 2022 based on data as at the valuation date and plan provisions. The accrued benefit obligation and net benefit costs (i.e. the expense) for the 2022 fiscal year end was determined by this valuation. The significant actuarial assumptions employed for the valuation are as follows: (i) Discount rate will be 2.50% per annum, increasing to 4.4% in 2023. (ii) Future inflation rates will be 2.75%. (iii) Dental cost trend rates will escalate at 5.00% in fiscal 2022 and remain stable at that level until 2027. (iv) Extended health care trend rates will be 5.60% in fiscal 2022; and remain stable at that level until 2027. 19 Page 416 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 8. Employee future benefits liabilities (continued) C. Information about the Municipality's employee future benefits liabilities is as follows: Accrued benefit obligation Balance, beginning of year Employer current service cost Interest cost Benefits paid Actuarial (gain) loss Balance, end of year Unamortized net actuarial gains 2022 2021 $ 10,200,559 $ 10,714,959 568,651 604,985 261,114 208,588 (574,032) (496,608) (2,351,278) (831,365) 8,105,014 10,200,559 1,797,882 (658,420) Employee future benefits liabilities, end of year $ 9,902,896 $ 9,542,139 9. Pension agreements The Municipality makes contributions to the Ontario Municipal Employees Retirement Fund ("OMERS"). OMERS is a multi -employer defined benefit pension plan which provides pensions for employees of Ontario municipalities, local boards, public utilities and school boards. The pension plan is financed by equal contributions from participating employers and employees, and by the investment earnings of the fund. The most recent actuarial valuation of the Plan was conducted at December 31, 2022. The results of this valuation disclosed total going concern actuarial liabilities of $130,306 million with respect to benefits accrued for service with actuarial assets at that date of $123,628 million indicating an actuarial deficit of $6,678 million. Because OMERS is a multi - employer plan, any Plan surpluses or deficits are the joint responsibility of Ontario municipal organizations and their employees. As a result the Municipality does not recognize any share of the Plan surplus or deficit. The Municipality recognizes the expense related to this plan as contributions are made. The contribution rates and year's maximum pensionable earnings (YMPE) are outlined in the table below. NRA 65 up NRA 65 up NRA 60 up NRA 60 Year YMPE to YMPE to YMPE to YMPE over YMPE 2022 $ 64,900 9.00 % 14.60 % 9.20 % 15.80 % 2021 $ 61,600 9.00 % 14.60 % 9.20 % 15.80 % The amount contributed to OMERS for 2022 was $3,396,079 (2021 — $3,364,678) for current services and is included as an expense on the statement of operations. 20 Page 417 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 10. Debenture Debt The debenture debt consists of several debentures that mature in the years 2023 to 2042. a. Debenture debt details At the end of the year, the outstanding principal amount of this liability is $32,312,792 (2021 - $7,686,715). Maturity Date Interest Rate %' Regional By-law # 2022 2021 August 21, 2022 4.60 to 4.75 07-2007 $ - $ 1,000,000 July 2, 2024 1.95 to 3.35 38-2014 313,000 464,000 July 2, 2029 1.95 to 3.80 38-2014 3,344,600 3,766,600 October 17, 2031 1.25 to 2.80 48-2016 625,000 688,000 April 13, 2032 1.70 to 3.30 56-2017 713,128 774,413 April 13, 2032 1.70 to 3.30 56-2017 915,064 993,702 July 5, 2042 3.35 to 4.75 32-2022 20,000,000 - July 5, 2032 3.35 to 4.30 32-2022 6,402,000 - $ 32,312,792 $ 7,686,715 1 Interest rates gradually increase to the upper limits noted in the table. b. Principal repayments Of the municipal debt reported in (a) of this note, principal payments are payable from general municipal revenues follows: 2023 $ 1,975,103 2024 2,039,737 2025 1,946,826 2026 2,014,915 2027 2,089,457 Thereafter 22,246,754 $ 32,312,792 C. Principal and interest 21 Page 418 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 10. Debenture Debt (continued) C. Principal and interest (continued) The annual principal and interest payments required to service these liabilities are within the annual debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing. d. Interest expense Total interest expense related to the net long-term liabilities amounted to $759,772 (2021 - $280,509) and is reported on the Consolidated Statement of Operations. 11. Internal Loans As a means of funding various capital acquisitions, funds are borrowed from the Municipal Capital Reserve Fund. These funds are secured by promissory notes with interest rates ranging from 2.20% to 3.30% and payment terms of 15 years. The financing arrangements and ultimate repayment are approved by Council through the budget process. a. The following is a summary of the individual loans: Major Parking Lot Rehabilitation $ 1,357,019 LED Street lighting Conversion 2,016,981 $ 3,374,000 b. Of the internal loans reported in (a) of this note, principal payments are as follows: 2023 $ 263,000 2024 271,000 2025 279,000 2026 287,000 2027 296,000 Thereafter 1,978,000 $ 3,374,000 22 Page 419 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 12. Deferred revenue - obligatory reserve funds The continuity of "deferred revenue - obligatory reserve funds" of the Municipality is summarized as follows: 2022 2021 Balance, beginning of year $ 69,404,094 $ 61,435,647 Contributions: Contributions from developers 12,553,477 11,868,622 Investment Income 2,106,347 787,978 Canada community -building 2,918,206 5,723,561 Provincial infrastructure 3,866,848 1,893,429 21,444,878 20,273,590 Utilization: Transfer to operating 4,083,503 634,085 Acquisition of TCA - construction 4,576,592 11,671,058 8,660,095 12,305,143 Change in deferred revenue during the year 12,784,783 7,968,447 Balance, end of year 82,188,877 69,404,094 Balance, end of year - analyzed as follows: Parkland cash -in -lieu 6,874,492 5,183,960 Canada community -building 4,525,798 4,181,454 Building code act 2,462,343 2,847,931 Provincial infrastructure 4,348,686 1,204,275 Development charges (Note 13) 63,977,558 55,986,474 Total deferred revenue — obligatory reserve funds $ 82,188,877 $ 69,404,094 23 Page 420 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 13. Continuity of development charges reserve funds Balance at the beginning of the year Development charges collections Investment income Tangible capital assets acquisitions and construction Operating expenses 2022 2021 $ 55,986,474 $ 50,015,215 11,290,994 10, 640,407 1,694,340 625,190 (1,957,747) (3,587,431) (3,036,503) (1,706,907) Balance at the end of the year $ 63,977,558 $ 55,986,474 14. Contingencies Various legal actions and claims have been initiated by and against the Municipality, the outcomes of which cannot be determined at the time of reporting. Accordingly, no provision has been made in these consolidated financial statements for any liability which may result. Should any gain or loss occur as a result of the above legal actions the Municipality will account for the gain/loss when it is likely that such a gain/loss will occur and the amount is measurable. 15. Contractual commitments During the year the Municipality had work done on several major projects with contract values totaling approximately $38,354,707 (2021 - $36,339,591). These contracts relate to the construction and expansion of certain permanent facilities. As at December 31, 2022, $8,613,197 (2021 - $7,722,307) relating to these contracts had not been expended. 16. Related party transactions and balances - Elexicon Corporation Transactions Dividends received Interest earned on promissory notes Property taxes Energy and services purchases Balances Promissory notes receivable Accounts payable and accrued liabilities 2022 2021 $ 845,288 $ 1,053,347 343,657 343,657 34,413 492,128 8,321,000 83,078 33,929 485,981 8,321,000 78,193 24 Page 421 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 17. Guarantees In the normal course of business, the Municipality enters into agreements which contain guarantees. The Municipality's primary guarantees are as follows: (i) The Municipality has provided indemnities under lease agreements for the use of various facilities or land. Under the terms of these agreements the Municipality agrees to indemnify the counterparties for various items including, but not limited to, all liabilities, losses, suits, and damages arising during, on or after the term of the agreement. The maximum amount of any potential future payment cannot be reasonably estimated. (ii) The Municipality indemnifies employees and elected officials for various items including, but not limited to, all costs to settle suits or actions due to association with the Municipality, subject to certain restrictions. The Municipality has purchased liability insurance to mitigate the cost of any potential future suits or actions. The term of the indemnification is not explicitly defined, but is limited to the period over which the indemnified party served as an employee or elected official of the Municipality. The maximum amount of any potential future payment cannot be reasonably estimated. (iii) The Municipality has entered into agreements that may include indemnities in favour of third parties, such as purchase and sale agreements, confidentiality agreements, engagement letters with advisors and consultants, outsourcing agreements, leasing contracts, information technology agreements and service agreements. These indemnification agreements may require the Municipality to compensate counterparties for losses incurred by the counterparties as a result of breaches in representation and regulations or as a result of litigation claims or statutory sanctions that may be suffered by the counterparty as a consequence of the transaction. The terms of these indemnities are not explicitly defined and the maximum amount of any potential reimbursement cannot be reasonably estimated. The nature of these indemnification agreements prevents the Municipality from making a reasonable estimate of the maximum exposure due to the difficulties in assessing the amount of liability which stems from the unpredictability of future events and the unlimited coverage offered to counterparties. Historically, the Municipality has not made any significant payments under such or similar indemnification agreements and therefore no amount has been accrued in these consolidated financial statements with respect to these agreements. 18. Tangible capital assets The continuity of the historical cost and accumulated amortization for various categories of tangible capital assets can be found in Schedule 1. Further information relating to tangible capital assets is as follows: a. Contributed tangible capital assets The Municipality of Clarington records all tangible assets contributed by an external party at 25 Page 422 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 18. Tangible capital assets (continued) a. Contributed tangible capital assets (continued) fair value on the earlier of the date received or of the transfer of risk and responsibility. Typical examples are roadways, parks, land, and storm sewer lines installed by a developer as part of a subdivision agreement. For subdivision assets, the recorded date is considered to be the date of acceptance with the exclusion of streetlights with the recorded date as the date of completion. In 2022, there were contributed assets of $7,524,869 (2021 - $2,425,232). b. Works of Art and Historical Treasures The Municipality has one historical collection. The Clarington Museums and Archives collection is currently insured for $238,500. Also included in historical treasures are the cenotaphs located in Bowmanville, Newcastle, Orono and Newtonville. Due to the rural history, there are several abandoned cemeteries located throughout the Municipality. All associated physical items, including historical signs and cairns, or concrete structures build for old headstones, are considered a historical treasure. 19. Accumulated surplus Accumulated surplus is comprised of the following: Investment in tangible capital assets General surplus Capital Surplus Inventory - surplus land Debenture debt Unfunded employee benefits and post -employment liabilities Reserves set aside for specific purposes by Council: Acquisition of capital assets Legal / consulting Election expenses Fire prevention Burketon park improvements Samuel Wilmot nature area Secondary plans Clarington Heritage committee board Library and Musuem 2022 2021 $461,450,953 $461,278,530 6,842,796 6,954,091 52,543,426 24,336,869 146,349 146,349 (32,312,792) (7,686,715) (1,906,715) (2,323,287) 7,852,477 5,825,242 2,169,447 2,261,174 143,419 347,338 304,552 304,552 7,569 7,569 1,301 595 109,769 128,340 5,151 6,151 1,597,025 - Page 423 al Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 19. Accumulated surplus (continued) 2022 2021 Reserve funds set aside for specific purposes by Council: General municipal purposes 8,285,492 7,597,010 Rate stabilization 10,111,424 9,376,171 Stategic capital 10,283,908 10,351,048 Recreation programs and facilities 814,070 883,425 Debenture repayment 867,433 651,771 Industrial development 676,947 614,607 Other cultural 159,706 149,301 Acquisition of capital assets 11,090,560 8,634,885 Newcastle Waterfront study 45,913 45,127 Municipal capital works 6,414,306 4,854,567 Other capital - unspecified - 982,334 Road contributions 3,391,756 3,138,028 Port Granby LLRW 320,918 315,420 Community improvement plan 1,194,442 152,622 Business improvement areas 140,320 137,919 Hampton Union Cemetery 117,069 115,065 Community emergency management 623,733 691,476 Equity in Elexicon Corporation 28,579,934 27,466,126 Accumulated surplus $582,072,658 $567,743,700 20. Segmented information The Municipality provides a wide range of services to its residents. Distinguishable functional segments have been separately reported on Schedule 2. For each segment, revenues and expenses represent amounts that are directly attributable to each segment. Tax revenues are reported as part of general government. The nature of the segments and the activities they encompass are as follows: a. General government services General government is comprised of all departments that support the corporate governance, management and program support for the Municipality. b. Protection services 27 Page 424 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 20. Segmented information (continued) b. Protection services (continued) Protection services includes protection to persons and property and is comprised of Emergency and Fire Services, Municipal Law Enforcement, Animal Services and Building Inspection / Enforcement services. Emergency and Fire Services includes responsibility for emergency management, fire prevention and public education, fire suppression, communication, and training. C. Transportation services Transportation services includes services provided by the Public Works department. The primary responsibilities include the inspection, planning and maintenance of the roads, bridges, sidewalks, streetlights, roadsides, winter snow clearing, subdivision planning, traffic engineering, development, and municipal servicing reviews. Other services include fleet maintenance, parking and school crossing guards. d. Environmental services Environmental services includes storm -water management, erosion control and resale of waste diversion goods. e. Health services Health services includes the maintenance and operation of the Municipality's active and abandoned cemeteries and crematorium, cemetery records management and the sale of cemetery plots, permits and headstones. Recreation and cultural services Recreation and cultural services includes the administration, operation and maintenance of all recreational, aquatic, arena, community recreational facilities, parks and trails. Clarington Libraries, Museums and other external cultural agencies are also included in this segment. g. Planning and development services Planning and development services includes the development of planning policies, urban design, development approvals, heritage preservation, real estate services and geomatics. This segment further includes business improvement areas and tourism activities. 21. Budget amounts The budget figures reflected in these consolidated statements are those approved by Council on February 5, 2022. Budget figures have been translated to reflect Public Sector Accounting Board standards (PSAS). 28 Page 425 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Notes to the Consolidated Financial Statements December 31, 2022 22. Comparative figures Certain comparative figures have been reclassified to conform to the financial statement presentation adopted in the current year. 29 Page 426 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Consolidated Schedule of Tangible Capital Assets - Schedule 1 For the Year Ended December 31, 2022 2022 General Infrastructure Land Linear Road Linear Storm Assets under Land Improvements Buildings Vehicles Equipment Land & Related Sewers Buildings Vehicles Equipment construction Total Cost Balance, beginning of year $ 72,538,814 $ 43,139,415 $108,998,027 $ 9,148,357 $ 15,023,754 $ 7,999,830 $416,276,929 $ 99,853,088 $ 2,260,968 $ 15,534,566 $ 144,802 $ 15,291,542 $806,210,092 Add: additions during the year 384,000 1,152,082 504,518 - 1,106,661 495,900 19,247,959 869,699 - 1,784,146 188,344 8,986,977 34,720,286 Less: disposals during the year (99,440) (88,158) (495,855) (525,098) (904,678) (5,176) (3,615,326) (608) - (535,372) - (11,201,368) (17,471,079) Balance, end of year 72,823,374 44,203,339 109,006,690 8,623,259 15,225,737 8,490,554 431,909,562 100,722,179 2,260,968 16,783,340 333,146 13,077,151 823,459,299 Accumulated amortization Balance, beginning of year - 16,431,328 56,049,464 6,982,536 9,320,006 - 221,878,134 22,974,350 1,619,684 9,654,413 21,647 - 344,931,562 Add: amortization during the year - 1,349,094 3,175,273 475,645 1,323,651 - 13,960,219 1,346,637 77,591 1,067,115 28,673 - 22,803,898 Less: accumulated amortization on disposals - (88,158) (449,856) (525,098) (892,433) - (3,371,277) (576) - (399,716) - - (5,727,114) Balance, end of year _ 17,692,264 58,774,881 6,933,083 9,751,224 - 232,467,076 24,320,411 1,697,275 10,321,812 50,320 - 362,008,346 Net book value of tangible capital assets $ 72,823,374 $ 26,511,075 $ 50,231,809 $ 1,690,176 $ 5,474,513 $ 8,490,554 $199,442,486 $ 76,401,768 $ 563,693 $ 6,461,528 $ 282,826 $ 13,077,151 $461,450,953 30 Page 427 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Consolidated Schedule of Tangible Capital Assets - Schedule 1 For the Year Ended December 31, 2022 2021 General Infrastructure Land Linear Road Linear Storm Assets under Land Improvements Buildings Vehicles Equipment Land & Realated Sewers Buildings Vehicles Equipment construction Total Cost Balance, beginning of year $ 72,613,814 $ 41,359,390 $108,167,018 $ 9,318,854 $ 14,617,085 $ 6,007,350 $411,072,716 $ 98,614,861 $ 2,260,968 $ 14,575,223 $ 56,191 $ 12,379,100 $791,042,570 Add: additions during the year - 2,152,344 961,454 - 1,151,572 1,992,480 7,582,341 1,239,755 - 1,063,551 88,611 9,843,572 26,075,680 Less: disposals during the year (75,000) (372,319) (130,445) (170,497) (744,903) - (2,378,128) (1,528) - (104,208) - (6,931,130) (10,908,158) Balance, end of year 72,538,814 43,139,415 108,998,027 9,148,357 15,023,754 7,999,830 416,276,929 99,853,088 2,260,968 15,534,566 144,802 15,291,542 806,210,092 Accumulated amortization Balance, beginning of year - 15,439,682 52,946,077 6,621,609 8,760,163 - 211,151,194 21,648,700 1,536,911 8,835,079 10,283 - 326,949,698 Add: amortization during the year - 1,275,651 3,202,830 531,424 1,297,645 - 12,915,586 1,327,178 82,773 923,542 11,364 - 21,567,993 Less: accumulated amortization on disposals - (284,005) (99,443) (170,497) (737,802) - (2,188,646) (1,528) - (104,208) - - (3,586,129) Balance, end of year - 16,431,328 56,049,464 6,982,536 9,320,006 - 221,878,134 22,974,350 1,619,684 9,654,413 21,647 - 344,931,562 Net book value of tangible capital assets $ 72,538,814 $ 26,708,087 $ 52,948,563 $ 2,165,821 $ 5,703,748 $ 7,999,830 $194,398,795 $ 76,878,738 $ 641,284 $ 5,880,153 $ 123,155 $ 15,291,542 $461,278,530 31 Page 428 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Consolidated Schedule of Segmented Information - Schedule 2 For the Year Ended December 31, 2022 2022 General government services Protection services Transportation services Environmental services Recreation and Health services cultural services Planning and development Consolidated Operating revenue Taxation and user charges $ 75,768,278 $ 2,516,807 $ 1,444,763 $ 156,763 $ 458,371 $ 4,444,877 $ 3,058,448 $ 87,848,307 Grants 162,337 110,244 71,050 - - 628,741 621,261 1,593,633 Other 7,037,427 464,976 5,537,337 60,676 317,870 2,877,585 287,402 16,583,273 Elexicon Corporation 1,959,096 - - - - - - 1,959,096 Contributed tangible capital assets - - 5,427,384 1,217,585 - 879,900 - 7,524,869 Other income 5,911 - - - - 388 - 6,299 Loss on disposal of tangible capital assets - 55,000 (270,946) (32) - (55,591) - (271,569) Total operating revenue 84,933,049 3,147,027 12,209,588 1,434,992 776,241 8,775,900 3,967,111 115,243,908 Operating expenses Salaries and wages 5,054,606 17,492,153 9,312,864 485,267 326,256 14,585,698 4,079,141 51,335,985 Operating materials and supplies 887,458 973,891 4,954,014 669,866 341,559 5,790,416 309,576 13,926,780 Contract services 743,552 1,178,984 2,854,600 849,269 - 2,911,962 2,017,984 10,556,351 Rent and financial expenses 347,408 - 15,320 - - 74,908 - 437,636 External transfers to others - 750 - - - 982,981 - 983,731 Amortization expense 1,032,647 1,113,036 14,898,962 1,730,357 4,444 3,985,967 38,485 22,803,898 Interest on long-term liabilities 29,103 - 235,355 - - 606,111 - 870,569 Total operating expenses 8,094,774 20,758,814 32,271,115 3,734,759 672,259 28,938,043 6,445,186 100,914,950 Annual surplus (deficit) $ 76,838,275 $ (17,611,787) $ (20,061,527) $ (2,299,767) $ 103,982 $ (20,162,143) $ (2,478,075) $ 14,328,958 32 Page 429 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Consolidated Schedule of Segmented Information - Schedule 2 For the Year Ended December 31, 2022 2021 General government Protection Transportation Environmental Recreation and Planning and services services services services Health services cultural services development Consolidated Operating revenue Taxation and user charges $ 72,211,175 $ 3,577,400 $ 1,135,785 $ 232,299 $ 420,075 $ 2,295,093 $ 1,348,349 $ 81,220,176 Grants 2,832,310 57,239 173,918 - - 348,338 37,021 3,448,826 Other 4,726,193 (463,810) 10,451,331 357,768 55,770 3,252,599 7,483 18,387,334 Elexicon Corporation 1,617,475 - - - - - - 1,617,475 Contributed tangible capital assets - - 1,132,016 757,216 - 536,000 - 2,425,232 Other income 68 - 1,800 - - - 1,002,389 1,004,257 Loss on disposal of tangible capital assets - 10,576 (171,341) - - (116,934) (75,000) (352,699) Total operating revenue 81,387,221 3,181,405 12,723,509 1,347,283 475,845 6,315,096 2,320,242 107,750,601 Operating expenses Salaries and wages 4,506,014 16,839,769 8,680,540 487,152 314,515 12,861,762 4,154,528 47,844,280 Operating materials and supplies 695,541 825,376 4,407,537 430,849 201,776 4,885,505 327,757 11,774,341 Contract services 499,808 1,192,052 4,144,215 723,571 - 2,391,147 1,218,235 10,169,028 Rent and financial expenses (363,106) - 11,414 - - 144,236 - (207,456) External transfers to others - 7,750 - - - 1,083,600 - 1,091,350 Amortization expense 1,041,888 1,068,514 13,823,949 1,692,562 3,956 3,934,261 2,863 21,567,993 Interest on long-term liabilities 30,866 - 254,087 - - 113,019 - 397,972 Total operating expenses 6,411,011 19,933,461 31,321,742 3,334,134 520,247 25,413,530 5,703,383 92,637,508 Annual surplus (deficit) $ 74,976,210 $ (16,752,056) $ (18,598,233) $ (1,986,851) $ (44,402) $ (19,098,434) $ (3,383,141) $ 15,113,093 33 Page 430 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Consolidated Schedule of Segmented Information - Schedule 3 For the Year Ended December 31, 2022 2022 - Budget General government Protection Transportation Environmental Recreation and Planning and services services services services Health services cultural services development Consolidated Operating revenue Taxation and user charges $ 74,897,981 $ 2,059,800 $ 1,136,500 $ 168,300 $ 354,400 $ 4,688,831 $ 1,257,970 $ 84,563,782 Grants - 22,000 - - - 112,481 - 134,481 Other 2,003,000 275,216 16,970,309 - - 1,805,851 6,000 21,060,376 Contributed tangible capital assets - - 5,427,384 1,217,585 - 879,900 - 7,524,869 Total operating revenue 76,900,981 2,357,016 23,534,193 1,385,885 354,400 7,487,063 1,263,970 113,283,508 Operating expenses Salaries and wages 5,120,130 18,247,720 10,369,140 482,454 417,182 15,012,635 4,893,908 54,543,169 Operating materials and supplies 908,991 1,038,974 5,959,468 783,722 209,153 5,897,269 593,677 15,391,254 Contract services 630,675 1,366,586 3,617,072 826,232 - 2,970,715 796,282 10,207,562 Rent and financial expenses 218,250 - 11,653 - - 69,048 - 298,951 External transfers to others - 10,000 - - - 782,845 - 792,845 Amortization expense 1,078,017 1,560,448 14,173,454 1,685,084 3,418 3,988,744 2,863 22,492,028 Interest on long-term liabilities 29,512 - 201,040 - - 77,235 - 307,787 Total operating expense 7,985,575 22,223,728 34,331,827 3,777,492 629,753 28,798,491 6,286,730 104,033,596 Annual surplus (deficit) $ 68,915,406 $ (19,866,712) $ (10,797,634) $ (2,391,607) $ (275,353) $ (21,311,428) $ (5,022,760) $ 9,249,912 34 Page 431 Attachment 5 to Report FSD-030-23 The Corporation of the Municipality of Clarington Consolidated Schedule of Segmented Information - Schedule 3 For the Year Ended December 31, 2022 2021 - Budget General government Protection Transportation Environmental Recreation and Planning and services services services services Health services cultural services development Consolidated Operating revenue Taxation and user charges $ 71,692,681 $ 2,054,800 $ 1,025,800 $ 168,300 $ 351,100 $ 4,327,289 $ 1,114,991 $ 80,734,961 Grants 903,000 22,000 697,000 - - 112,481 - 1,734,481 Other 3,265,000 415,500 8,621,240 - - 3,862,756 15,500 16,179,996 Contributed tangible capital assets - - 1,132,016 757,216 - 536,000 - 2,425,232 Total operating revenue 75,860,681 2,492,300 11,476,056 925,516 351,100 8,838,526 1,130,491 101,074,670 Operating expenses Salaries and wages 4,781,266 16,706,911 9,785,520 487,563 395,131 14,138,084 4,589,673 50,884,148 Operating materials and supplies 844,230 1,067,066 5,611,193 464,506 125,335 5,999,426 609,521 14,721,277 Contracted services 351,825 1,196,073 4,666,643 768,048 - 2,587,341 1,642,747 11,212,677 Rent amd financial expenses 205,000 - 11,472 - - 56,984 - 273,456 Enternal transfers to others - 10,000 - - - 1,236,223 - 1,246,223 Amortization expense 1,003,657 1,240,104 13,523,816 1,608,392 2,442 3,823,832 2,863 21,205,106 Interest on long-term liabilities 30,866 - 206,843 - - 113,019 - 350,728 Total operating expense 7,216,844 20,220,154 33,805,487 3,328,509 522,908 27,954,909 6,844,804 99,893,615 Annual surplus (deficit) $ 68,643,837 $ (17,727,854) $ (22,329,431) $ (2,402,993) $ (171,808) $ (19,116,383) $ (5,714,313) $ 1,181,055 35 Page 432 Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Joint Committees Date of Meeting: June 19, 2023 Submitted By: Mary -Anne Dempster, CAO File Number: Report Number: CAO-012-23 By-law Number: Resolution#: Report Subject: Council Remuneration — Impact of Elimination of 1/3 Tax Free Allowance Recommendations: 1. That Report CAO-012-23 be received; 2. That the 1/3 tax exemption equivalent be applied to 2023 Council salary rates; and 3. That any budget variance incurred be covered through overall Municipal wage gapping. Page 433 Municipality of Clarington Report CAO-012-23 Report Overview Page 2 Being a Member of Council requires the dedication of significant time and effort, the demands of which are increasing as Clarington continues to grow rapidly. There is a need to ensure that elected officials are fairly compensated for their work. Individual municipalities can decide how they will structure their remuneration packages, within the guidelines as set under the Municipal Act, 2001. Clarington has not undergone a comprehensive review of Council remuneration in several years and such a review should be undertaken to ensure compensation is fair an appropriate. As an interim measure to ensure that efforts are made to ensure compensation rates are appropriate, this report recommends that Council reconsider its decision to not adjust pre-tax income due to the removal of the 1/3 tax exemption by the Federal government in 2019. The net impact of this has created a significant gap amongst comparator Lakeshore municipalities in Durham Region who did institute an adjustment. This gap was further widened by the Council imposed remuneration freezes in 2021 and 2022. 1. Background Compensation Governance 1.1 Under the Municipal Act, 2001 a municipality may pay any part of the remuneration and expenses of the members of any local board of the municipality and of the officers and employees of the local board. 1.2 A municipality may only pay the expenses of the members of its council or of a local board of the municipality and of the officers and employees of the municipality or local board if the expenses are of those persons in their capacity as members, officers or employees and if, a) the expenses are actually incurred; or b) the expenses are, in lieu of the expenses actually incurred, a reasonable estimate, in the opinion of the council or local board, of the actual expenses that would be incurred. Clarington Council Compensation Policy 1.3 By-law 2011-005 outlines the compensation policies applicable to the Mayor and Members of Council. A review was undertaken most recently in 2018, specific to the elimination of the 1/3 tax exemption and OMERS related benefits. A fulsome review of the entire remuneration package has not been taken to Council for several years. Page 434 Municipality of Clarington Page 3 Report CAO-012-23 2. Preliminary Review 2.1 Staff compiled salary information from other lower -tier Durham lakeshore municipalities (inclusive of Clarington). Other benefits such as health, severance, car allowance and retirement are not included for the purposes of this exercise. Notable highlights are included below: Ajax Clarington Oshawa Pickering Whitby Population 126,666 101,427 175,383 99,186 138,501 (2021 Stats Canada) Council 1 — Mayor 1 — Mayor 1 — Mayor 1 — Mayor 1 — Mayor Composition 3 — Regional 2 — Regional 5 — Regional 3 — Regional 4 — Regional 3 — Local 4 — Local 5 — Local 3 — Local 4 — Local Annual $116,204 $97,359 $132,280 $120,703 $124,251 Salary — (Jan 1, 2022) (Jan 1, 2023) (Nov 15, 2022) (Jan 1, 2023) (Jan 1, 2020) Mayor Annual $44,468 $38,944 $48,544 $50,293 $44,004 Salary - (Jan 1, 2022) (Jan 1, 2023) (Nov 15, 2022) (Jan 1, 2023) (Jan 1, 2020) Councillor Salary Yes No Yes Yes Yes topped up due to elimination of 1 /3 tax free 2.2 The chart above showcases that Clarington ranks lowest in the listed salary categories. The salary gap was caused in part due to the removal of a long-standing federal tax Page 435 Municipality of Clarington Report CAO-012-23 Page 4 exemption for elected municipal office holders, that expired on January 1, 2019. It was up to each individual municipality to decide how they would address this change in federal tax law, and its reduction of after-tax compensation for elected officials. 2.3 The Federation of Canadian Municipalities (FCM) published a report in 2018 with options for consideration: 1. Compensating salary increase (full) 2. Compensating salary increase (partial) 3. Expanded expense policies 4. No action 2.4 Clarington was the only municipality in the comparator list to not off -set the elimination of the one-third tax free salary with any corresponding adjustment. COD-029-01 informed Council of the options, including the status of decision of the other comparator Municipalities listed, only one of whom had decided at that time. This decision of Clarington Council significantly contributed to the salary gap that is evidenced above. 3. Financial Considerations 3.1 The financial impact to implement the value of the former 1/3 tax exemption would be $129,136 based on 2023 salaries. 4. Concurrence This report has been reviewed by the Deputy CAO/Treasurer who concurs with the recommendation. 5. Conclusion It is respectfully recommended that the Council compensation be adjusted to account for the former 1/3 tax free exemption (net of any statutory reductions) and applied against the current 2023 salary rates. Staff Contact: Justin MacLean, Manager — Strategic Initiatives, 905-623-3379 Ext. 2017 or Jmaclean@clarington.net. Page 436 Clarbgton Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Joint Committees Date of Meeting: June 19, 2023 Submitted By: Mary -Anne Dempster, CAO File Number: Report Number: CAO-013-23 Resolution#: By-law Number: Report Subject: Corporate Climate Action Plan, Annual Update to June 2023 Recommendations: 1. That Report CAO-013-23 be received for information. Page 437 Municipality of Clarington Report CAO-013-23 Report Overview Page 2 This report provides the second annual update on the implementation of the Clarington Corporate Climate Action Plan (CCAP) since its endorsement by Council in March 2021. It includes a summary of accomplishments in 2022 and priorities for 2023. This report also provides an update on the implementation of Clarington's 2019 Energy Conservation and Demand Management (ECDM) Plan. 1. Background Context 1.1 The climate crisis becomes more urgent each year. More frequent and intense extreme events will continue to cause widespread adverse impacts on nature and people. Action must happen immediately at the necessary scale to respond to this crisis. 1.2 The Intergovernmental Panel on Climate Change (IPCC) noted in their 2022 update that North American cities have been affected by the severity and frequency of climate hazards and extreme events. Higher temperatures have increased morbidity and mortality. Extreme events have contributed to infrastructure damage, loss of livelihood, and safety concerns. Impacts are especially apparent for Indigenous communities who are closely connected to a resilient environment. 1.3 The Municipality of Clarington plays an important role in responding to climate change by decarbonizing corporate assets and operations and by instituting policies (e.g., land use), programs (e.g., fleet), and services to enable broader community -wide Green House Gas (GHG) emissions reductions, as well as improved resilience to extreme weather caused impacts associated with climate change. Previous Decisions 1.4 Since 2016, the Municipality of Clarington staff have participated in the Durham Community Energy Plan (DCEP) and the Durham Community Climate Adaptation Plan (DCCAP) with the Durham Region, other local area municipalities and local utilities. The DCCAP and DCEP contain actions to help the community prepare for climate change, reduce community GHG emissions and increase energy independence while promoting local economic development. Council endorsed the DCEP in 2019 (Report CAO-014- 19). 1.5 In 2013, the Municipality established the Priority Green Clarington initiative, providing a starting point framework for sustainable development guidelines (PSD-060-15). Page 438 Municipality of Clarington Report CAO-013-23 Page 3 1.6 In 2019, The Municipality released the Clarington Energy Conservation and Demand Management Plan 2019-2024. The ECDM plan identifies actions that the Municipality will take to conserve energy, reduce GHG emissions and save money in Municipal buildings. With the newly implemented energy tracking software, we can better track usage and emissions. 1.7 In February 2020, Council passed a motion to prioritize using low emissions vehicles in the municipal fleet, reducing corporate GHG emissions contributing to climate change. (Resolution: C-066-20). 1.8 On March 2, 2020, the Municipality declared a climate emergency, highlighting its commitment to protecting the community and ecosystems from climate change by reducing greenhouse gas (GHG) emissions that are causing climate change (Resolution: GG-083-20). 1.9 In March 2021, Council endorsed the Clarington Corporate Climate Action Plan (PSD- 018-21). The CCCAP contains 116 actions to respond to limited risks posed by climate change and establishes corporate greenhouse gas emissions reduction targets. The CCCAP sets a target to reduce corporate greenhouse gas emissions to 35% below 2018 baseline levels by 2030 and to achieve net zero emissions by 2050. 2. CCCAP Update 2022 CCCAP Update 2.1 Since the last CCCAP Update in 2022, Staff have been working on the identified action items. Actions started or completed in 2022 include: Action Ass. CCCAP Status Action Number Implementation of corporate energy management software to enable the Municipality to track GHG 1.1, 1.12 7.11 Complete emissions, waste and energy and water consumption Update of the Municipality's procurement policy to 1.7, 1.8, 1.9, Underway include sustainable procurement 1.33, 1.34 Investigate the feasibility of incorporating district energy 1.24 Underway into secondary plans Update the Municipal Green Development Framework to integrate into municipal development application 1.25, 1.26, 1.27 Underway processes Coordination with the Region of Durham on the creation Reduce GHG Underway of a region -wide EV education program emissions Page 439 Municipality of Clarington Report CAO-013-23 Page 4 Coordination with the Region of Durham on the creation of a region -wide flood -risk communications strategy Reduce GHG emissions Underway Coordination with the region of Durham on the creation Reduce GHG and implementation of a region -wide home energy Underway retrofit program emissions Install 10 EV charge stations on municipal properties as Reduce GHG guided by the Clarington EV Action Plan, approved in Complete February 2022 emissions Table 1 — CCCAP Actions Completed in 2022 2023-24 CCCAP Next Steps: Plan Review & Technical Scenario Modelling 2.2 While the Municipality has made progress in its climate actions, it is not on track to meet the Council -endorsed target of an 80% reduction from 2018 baseline emission levels by 2030, and net zero emissions by 2050. The Interdepartmental Climate Change Working Group (ICCWG) is completing a review to assess the plan's progress and make necessary adjustments. This review will ensure that the plans remain relevant, adaptable, and effective in achieving Clarington's targets while promoting continuous improvement. 2.3 The Durham Region provided an update on their Durham Community Energy Plan (DCEP) in March 2023, confirming that the Region is not on track to meet the Council - endorsed targets. Staff have been working with the Region to close the gap, build climate actions and initiatives, achieve emissions targets, and enhance public transparency. 2.4 Staff are implementing the action items from PDS-045-021 to update Clarington's Planning and Development Design Standards to incorporate Green Development Standards, including updating policies and processes, finalizing a strategy to monitor uptake and effectiveness, and creating communications materials for staff and the public for public education. The revised Standards are anticipated to be complete by Q1 of 2024. 2.5 Technical modelling is a key factor in supporting the implementation and success of Clarington's climate action plans. This modelling plays a crucial role in the development and implementation of Clarington's net zero targets by: a. Understanding the current state — provide insights into the existing GHG emissions, energy usage patterns and the overall climate impact of Municipal operations. b. Setting ambitious yet feasible targets based on data — enable Staff and Council to make decisions to evaluate the feasibility of the targets set by analyzing different scenarios and the potential impacts. Page 440 Municipality of Clarington Report CAO-013-23 Page 5 c. Identifying effective mitigation strategies — technical modelling will help to identify the most effective and cost-effective strategies to achieve our climate goals. It allows for simulating different policy interventions, such as carbon pricing or renewable energy incentives. Analyzing the results of these models will help Staff prioritize and implement measures that yield the most significant emissions reductions and other benefits. d. Assessing the economic implications — technical modelling will enable Staff to evaluate the costs and benefits of different policy choices and mitigation strategies. It can also help to identify potential impacts on employment, energy prices and economic growth. e. Informing policy decisions - provide Staff and Council with evidence -based insights to inform decision -making. It can help evaluate potential effectiveness, anticipate unintended consequences, and identify barriers or challenges. Using technical models, Staff and Council can make more data -driven, informed decisions and develop more robust climate action plans. It helps ensure that climate action plans are based on thorough analysis, are realistic in their goals, and have the potential to achieve meaningful emissions reductions and sustainable development. 3. Energy Conservation and Demand Management (ECDM) Update 2022 ECDM Update 3.1 Community Services, Facility Services Staff have been working to implement the ECDM, which was endorsed by the Council in June 2019 through resolution GG-416-19. The ECDM Plan Contains 45 specific measures that can be implemented in municipal facilities to reduce energy consumption and GHG emissions. In 2022, the Municipality completed the following measures: Site Measures Fire Station #4 Programmable Thermostats Community HVAC System - Scheduling / Setback Resource Centre Table 2 — ECDM Actions Completed in 2022 2023 ECDM Next Steps 3.2 In 2023, Facilities Staff are working on the installation of the following measures, with some actions deferred from 2022: Page 441 Municipality of Clarington Report CAO-013-23 Page 6 Site Measures Status Fire Station #2 NG Pulse Meter Deferred Visual Arts Centre Lighting Upgrade Obtaining Quotes Fire Station #2 HVAC System - Scheduling / Pending Setback Hampton Hall Lighting Retrofit / Controls Complete Hampton Operations Depot Motion Sensors Obtaining Quotes Hampton Operations Depot Other Lighting Upgrades 50% Complete Fire Station #1 Lighting Retrofit Obtaining Quotes Fire Station #2 Lighting Retrofit Obtaining Quotes Sarah Jane Williams Heritage Motion Sensor Lighting Controls Obtaining Quotes Centre Newcastle Branch LED Lighting Retrofit Obtaining Quotes Library Table 3 — ECDM Actions Scheduled for Completion in 2023 3.3 The ECDM will be updated in 2024 per O. Reg 507118: Broader Public Sector: Energy Conservation and Demand Management Plans (ECDM). 4. Financial Considerations 4.1 Based on preliminary research of similar work in other municipalities, the cost to complete the technical scenario modelling will be approximately $120,000. Staff will look to offset the cost of the work by applying for applicable grant funding, and funds are accounted for in the 2023 Operating Budget, regardless of grant funding. 4.2 The outcome of the plan review will impact 2024 Operating Budget requests as plans are updated to reflect the current market value and to support more significant actions as they are recommended to be implemented. 5. Concurrence This report has been reviewed by the Director of Community Services and the Director of Financial Services, who concurs with the recommendations. 6. Conclusion It is respectfully recommended that Council receive this report for information. Page 442 Municipality of Clarington Report CAO-013-23 Page 7 Staff Contact: Natalie Ratnasingam, Climate Change Response Coordinator, 905-623-3379 ext. 2429 or nratnasingam(a-)clarington.net, or, Lee -Ann Reck, Manager Corporate Performance and Innovation, ext. 2508 or Ireck@clarington.net Attachments: Not Applicable Interested Parties: There are no interested parties to be notified of Council's decision. Page 443 Clarbgton Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Joint Committees Date of Meeting: June 19, 2023 Report Number: CAO-014-23 Submitted By: Mary -Anne Dempster, CAO By-law Number: File Number: Resolution#: Report Subject: Diversity in Clarington - 2023 Update on Diversity Initiatives and Clarinaton's Diversitv Advisory Committee Recommendation: 1. That Report CAO-014-23 be received for information. Page 444 Municipality of Clarington Report CAO-014-23 Report Overview Page 2 Diversity and Inclusion efforts are coordinated through Clarington's Diversity Advisory Committee (CDAC), its Anti -Black Racism Task Force, Clarington's Diversity and Inclusion Staff Team, and Clarington's Truth and Reconciliation Staff Committee, for both the community and the corporation. Each group developed work plans that outlined their goals and strategies for their success over the past year. Many of their accomplishments are included in this report. 1. Background 1.1 The Diversity and Inclusion portfolio moved to the Office of the CAO as part of the Corporate Performance and Innovation Division in 2022. The position evolved into the Inclusion, Diversity, Equity and Anti -Racism (IDEA) Officer and acts as a resource for all municipal service areas. This change demonstrates the corporate commitment to support initiatives that increase diversity and inclusion across the workplace and community. 1.2 The work within this portfolio is led by the IDEA officer and is further supported by internal staff and advisory committees to ensure a diversity of voices are contributing to the work and to ensure a greater impact in the workplace and community. The committees are outlined below. 1.3 The Clarington Diversity Advisory Committee (CDAC) is a resident committee that acts as an advisory body for Council. Its mandate is to provide advice, comments, and recommendations on issues affecting diversity in our community, foster awareness, reduce barriers, promote inclusion, and engage our residents. 1.4 The Clarington Anti -Black Racism Task Force (CABRTF) is a sub -committee of the CDAC and was formed in August 2020 from commitment to break down walls and eliminate racism in the community. CABRTF's focus is on developing strategies to address anti -Black racism and other forms of discrimination in our community. This is accomplished through education and awareness by recommending policies, initiatives, and guidance on matters related to racism. Members are appointed by the CDAC, and leadership is shared by a member of the CDAC who acts a Co -Chair. This helps to ensure continuity of the work to the overall CDAC. 1.5 Internally, Clarington's Diversity and Inclusion Staff Team (DIST) focuses on providing learning opportunities to staff, reviews internal policies to identify gaps or areas that need to be reviewed and strengthened. DIST extends the reach of diversity and inclusion by engaging staff at all levels across our corporation through employee -driven initiatives. Page 445 Municipality of Clarington Page 3 Report CAO-014-23 1.6 In 2021, a Truth and Reconciliation Staff Committee (TRSC) was formed with cross - departmental representation to examine the Truth and Reconciliation Commission of Canada's 94 Calls to Action and identify recommendations that the Municipality could take to move forward with reconciliation. The TRSC supports the education and awareness of staff and the community about reconciliation, special recognition days, and engagement with Indigenous communities. 2. Initiatives to Support Diversity and Inclusion Inclusive Communities 2.1 Clarington joined the Coalition of Inclusive Municipalities in June 2022, a network of close to 100 member municipalities in Canada. This supports the Municipality's commitment to address racism and discrimination through service delivery, employment, and culture. An action item after joining the coalition, is the development of an anti -racism and discrimination strategy that will be brought to Council later this year for endorsement. Public engagement is to begin to assist in building this strategy and is scheduled to take place until June 30, 2023. 2.2 In partnership with Autism Home Base Durham through their Lived Experience Autism Program, close to 100 Clarington firefighters participated on Autism Awareness training sessions which were developed in collaboration with autistic individuals and family caregivers. Once the training was complete, sensory kits were launched on the fire trucks to support their interactions in the community. 2.3 Clarington Public Library, Museums, and Archives (CPLMA) continues to be a strong partner in many ways for diversity, equity, and inclusion through community events, staff training opportunities and project and strategy development. Some examples of this cross -collaboration include: • Staff training initiatives • Representation on the Anti -Black Racism Task Force, Diversity and Inclusion Staff Team, and the Truth and Reconciliation Staff Committee • Community events: Clarington Celebrates Black History Month • Upcoming partnership includes National Indigenous Peoples Day, and the Anti - Racism and Discrimination Strategy 2.4 Over the past year, collaboration in diversity, equity, and inclusion (DEI) with the Region of Durhams' Diversity, Equity, and Inclusion Unit. In addition to coordinating regular networking of colleagues from across the Region in DEI, the following are examples of this increased partnership: • Consultation for the installation of Orange Crosswalks across the Region Page 446 Municipality of Clarington Report CAO-014-23 Page 4 Together We Rise Durham: Excellence Through the Arts; an in -person event held in Oshawa attended by close to 200 people to celebrate Black History Month International Women's Day celebration — in-person/hybrid event in Pickering with the theme Radical Restructuring: Empowering Women for Tomorrow that involved guest speakers, panel discussion, and displays from local service providers. Over 200 community members attended this event Upcoming collaboration includes: Emancipation Day recognition event and recognition of the National Day for Truth and Reconciliation 2.5 This past year, staff have connected with the Carion Fenn Foundation — Durham Black Network to offer, in partnership with the CPLMA, two Black Experience Town Hall events for the community: • October 2022: an in -person event was held at the Newcastle Community Hall to discuss experiences of anti -Black racism in the Policing and Justice system. • February 2023, another opportunity was offered to discuss systemic racism in healthcare. Approximately 50 community members gathered to participate in these discussions. 2.6 In April 2022, Clarington was welcomed as a Durham Region Aboriginal Advisory Circle member. This circle provides a forum for service providers, professionals, communities, and organizations, both Indigenous and non -Indigenous, to consult, collaborate and promote the collective health and well-being of Indigenous Peoples in the Durham Region. Inclusive Workplace 2.7 To build upon existing training programs for full and part-time staff, an Inclusion, Diversity, Equity, Anti -Racism, and Accessibility (IDEAA) Training plan was approved by Senior Leadership. This training plan includes topics such as gender diversity, anti - racism, Indigenous cultural awareness, and accessibility. A similar training policy was approved for Council and will launch this year to support Members of Council in recognizing, understanding, and addressing racism and discrimination. 2.8 Throughout the past year, the following IDEAA training opportunities were offered to staff: Topic Number of Participants Indigenous Cultural Awareness 72 Page 447 Municipality of Clarington Page 5 Report CAO-014-23 Topic Number of Participants Gender Diversity Basics 51 Gender Diversity for Managers 51 Advanced Gender Diversity for Executives 48 2.9 The Municipality of Clarington continued its relationship as an Employer Partner with the Canadian Centre for Diversity and Inclusion (CCDI). This membership demonstrates our commitment to promoting diversity and inclusion and has provided staff and Council with access to a variety of resources and opportunities to support their learning through resources, webinars, and events: Resource 2022 2021 2020 (April to December) Knowledge Repository Users 22 17 16 Number of Downloads 44 54 37 Number of Clicks 206 335 308 Webinars 56 64 110 Conference Registrations 6 6 1 Community of Practice Registrations 6 Not available 3 Page 448 Municipality of Clarington Report CAO-014-23 Page 6 2.10 Staff participated as a member of the Confronting Racism in Durham Region Working Group, coordinated through the Durham Region Unemployed Help Centre and the Ajax / Pickering Welcome Centre. The working group held a Confronting Outreach — Confronting Anti -Racism Career Fair — Advancing Innovation, Diversity, and Equity in Employment. Clarington hosted a booth at the Fair and interacted with job seekers from many diverse backgrounds. Through this partnership, the following resources were created: • Job Seeker Handbook for Racialized Job Seekers • Employer Handbook — Creating Inclusive Workplaces: Tips and Templates for Employers 2.11 Prompted through conversation with staff, a private multi -faith prayer room and spiritual space was created at the Municipal Administrative Centre for staff. The space is available for prayer and reflection and is a safe and inclusive space centred on respect. Staff are now exploring opportunities to offer spaces for this purpose at satellite locations. 2.12 Clarington Human Resources staff connected with the Welcome Centre Immigrant Services and the Durham Region Unemployed Help Centre to share job postings and direct qualified applicants to apply for our postings. As a municipality, staff also presented at virtual workshops held by the organization to interact with and encourage immigrant talent to consider applying to work with the Municipality of Clarington. 2.13 Recommended through Clarington's participation in the Leading Equitable and Accessible Delivery (LEAD) initiative, Clarington undertook a workforce demographic survey in early 2023. A third -party company administered the confidential survey to close to 700 employees. Highlights of the survey include: • 82% of the respondents feel training, and learning opportunities are offered to support their understanding of topics of diversity and inclusion • 88% say their colleagues make them feel included at work and that people in their team work effectively with each other regardless of differences (i.e. age, gender, race, ethnic origin, nationality, religion, sexual orientation, disability, etc) • 61 % feel our workforce reflects the diversity of the community • Of the respondents, the majority identified as White (82%), of no religious affiliation (50%) or Christian (31 %), not a part of the 2SLGBTQIA+ community (91 %), and do not have a disability (75%) 2.14 This survey information will inform a future diversity recruitment strategy that will address barriers and ensure we reach candidates from diverse communities to apply for Page 449 Municipality of Clarington Report CAO-014-23 Page 7 jobs with the Municipality. It will also help in planning programs, support, and resources for our employees. Truth and Reconciliation 2.15 Staff continue to examine the Truth and Reconciliation Commission's Calls to Action and identify recommendations the Municipality could take to respond to the Truth and Reconciliation Commission's Calls to Action and the Missing and Murdered Indigenous Women and Girls and Two -Spirit People (MMIWG2S) Calls for Justice. Some notable actions include: To support diversity initiatives and to remove systemic barriers, fees were waived for commissioning services on Ontario's change of name forms. This supports Call to Action #17, which asks all levels of government to enable residential school survivors and their families to reclaim names changed by the residential school system. To raise awareness and advocate for measures to prevent the Missing and Murdered Indigenous Women and Girls and Two -Spirit Peoples crisis from growing, Council passed a motion to support a Red Dress Alert. This supports Calls for Justice 1.5, 1.9, 5.8 and 9.5 of the MMIWG Final Report. • To support Call to Action #82, which asks for publicly accessible, highly visible monuments to honour Residential School Survivors and all the children who were lost to their families and communities, Clarington collaborated with the Region of Durham and area municipalities to consult with Indigenous communities about the installation of an Orange Crosswalk. In October 2022, an Orange Crosswalk was installed at the intersection of Temperance Street and Church Street, adjacent to the Municipal Administrative Centre and the Bowmanville Branch of the Clarington Public Library, Museums and Archives in Bowmanville. Inspired by the 94 Calls to Action contained in the National Centre for Truth and Reconciliation Report, land acknowledgments are identified as a necessary first step towards honouring the original occupants of the land. In 2019, Clarington Council adopted a Land Acknowledgment Statement, which is shared at regular and special meetings of Council and civic celebrations and other events. This past year, Council approved a change to include the Land Acknowledgment Statement as part of the Terms of Reference for Committees and Boards of Council as well as a broader application by providing guidelines to support the sharing of the Land Acknowledgement in a variety of settings. Page 450 Municipality of Clarington Page 8 Report CAO-014-23 3. Financial Considerations Not Applicable. 4. Concurrence Not Applicable. 5. Conclusion It is respectfully recommended that the report on the update of the diversity and inclusion activities in Clarington be received for information. While there has been significant work completed in 2022, much work remains to be done, to achieve the goal of an inclusive community. Staff, with the support of Clarington's Diversity Advisory Committee, Anti -Black Racism Task Force, Truth and Reconciliation Staff Committee and the Diversity and Inclusion Staff Team are confident we will see many accomplishments over the next few years. Staff Contact: Erica Mittag, IDEA Officer, emittag(cDclarington.net or Lee -Ann Reck, Manager Corporate Performance and Innovation, Ireck _clarington.net, Office of the CAO. Attachments: Not Applicable Interested Parties: The following interested parties will be notified of Council's decision: Clarington Diversity Advisory Committee Clarington Anti -Black Racism Task Force Page 451 Clarbgton Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Joint Committees Date of Meeting: June 19, 2023 Submitted By: Mary -Anne Dempster, CAO File Number: Report Number: CAO-015-23 By-law Number: Resolution#: Report Subject: Semi-annual Status Update on Outstanding Resolutions of Council Recommendations: 1. That Report CAO-015-23, and any related delegations or communication items, be received for information; Page 452 Municipality of Clarington Report CAO-015-23 Report Overview Page 2 As part of Report CAO-003-23, which provided an update on outstanding resolution from the 2018-2022 term, Council supported continued resource allocation to fulfill seven of the outstanding resolutions and closed two resolutions, with no further action. Council also directed the CAO to report semi-annually, a status update on outstanding resolutions. This report provides the first of the semi-annual updates. To date there are seven open outstanding resolutions, four remaining from the 2018-2022 Council term list and three from 2023. As directed, Staff have been actively working on reporting back to Council on the items, three of which are part of the June 19 Joint Committee Agenda. This report provides a complete list of the outstanding resolutions, a status update for each and an expected timeline to report back to Council. 1. Background 1.1 On January 9, 2023 Council passed resolution # GG-008-23, that the CAO report semi- annually a status update on outstanding Resolutions of Council. 1.2 This report identifies the outstanding resolutions, a status update for each and the scheduled timeframe for completion. 2. Outstanding Motions, Status Updates and Recommendations Council Request for Staff Report — Toolbox to Address Traffic Issues 2.1 At the October 18, 2021 General Government Committee the following motion was carried: Resolution # C-344-21 That Staff be requested to prepare a report on a toolbox to address traffic issues, based on Mr. Brake's report he had previously prepared for the City of Pickering. 2.2 The Traffic Calming Policy is currently being developed by Public Works Staff. A report is expected to be submitted to the October 16, 2023 General Government Committee Meeting. Page 453 Municipality of Clarington Page 3 Report CAO-015-23 2.3 In Report CAO-003-23, Council was advised that a report was expected in the Spring of 2023. The delay of submission is primarily due to staffing constraints. The content of the policy is very technical in nature which has the possibility of creating significant impacts on Local Neighbourhoods, Emergency Services, etc. Staff intend to provide a process of investigation and implementation and a suitable toolbox of measures such that it can assist Council and concerned residents. FSD-049-21 Roadmap for Community Board Sustainability 2.4 At the October 25, 2021 Joint Committee Meeting, the following motion was carried: Resolution # JC-073-21 That Report FSD-049-21 and any related communication items, be received; That Staff work with the hall and arena boards to determine the preferred structure of a Municipal Services Board or a Municipal Facility and bring back to Council the appropriate by-laws; That Staff include in the 2022 budget for consideration the costs to fund, and if necessary, procure, winter control, grass-cutting/garden maintenance, pest control and waste management services at the hall and arena boards; That Council approves in principle the four -step roadmap for Community Board Sustainability; and That all interested parties listed in Report FSD-049-21 and any delegations be advised of Council's decision. 2.5 Since the last update in report CAO-003-23, this project has launched with the Community Services Department as the lead. Staff have prepared Report CSD-002-23 for the June 19 Joint Committee meeting. Council Request for Staff Report — Exploring Paid Parking at Waterfront Municipal Lots 2.6 At the January 10, 2022, General Government Committee, the following motion was carried: Resolution # GG-023-22 That the Director of Public Works report back on the possibility of installing paid parking meters at the municipal waterfront parking lots. 2.7 Staff have prepared Report LGS-023-23 Municipal Parking Payment Modernization for the June 19 Joint Committee Meeting. Paid parking at waterfront Municipal lots is included as part of this report. Page 454 Municipality of Clarington Report CAO-015-23 Page 4 Council Request for Staff Report — Speeding in Clarington, specifically School and Community Safety Zones 2.8 At the December 12, 2022 Council Meeting, the following motion was carried: Resolution # C-224-22 That Staff be requested to report back on the impacts of speeding in Clarington communities, specifically in school zones and community safety zones. 2.9 The report will be finalized over the summer months and submitted to General Government Committee in September to coincide with the resumption of school. FSD-007-23 Council Remuneration 2.10 At the February 27, 2023 Joint Committee Meeting, the following motion was carried: Resolution # JC-032-23 That Staff be directed to bring forward a report to compare the remuneration of Council Members with Members of other municipalities. 2.11 Staff have prepared Report CAO-012-23 for the June 19 Joint Committee Meeting. FSD-025-23 2022 Investments Annual Report 2.12 At the May 29, 2023 General Government Committee meeting, the following motion was carried: Resolution # GG-116-23 That Report FSD-025-23, and any related delegations or communication items, be received for information; That the Draft Investment Policy, as attachment #1, be approved; That Staff report back on the Prudent Investor Standard; and That any interested parties listed in Report FSD-025-23, and any delegations, be advised of Council's decision. 2.13 A report regarding the Prudent Investor Standard is expected to be prepared for Council in the fall of 2024 Page 455 Municipality of Clarington Report CAO-015-23 Page 5 Council request for a Staff Report - Declare Intimate Partner Violence (IPV) an Epidemic 2.14 At the May 29, 2023 General Government Committee meeting the following motion was carried: Resolution # GG-121-23 Whereas Intimate partner violence (IPV) is physical, sexual, coercive control, emotional abuse and aggression that occurs in an intimate relationship; Whereas supporting efforts to address gender -based violence, which disproportionately impacts BIPOC women and girls would align with the Ontario governments' Anti -Black Racism Strategy, Ontario Health's Equity, Inclusion, Diversity and Anti -Racism Framework, The National Action Plan to End Gender Based Violence, and Truth and Reconciliation Call to Action #40". Whereas on the morning of September 22, 2015, Carol Culleton, Anastasia Kuzyk, and Nathalie Warmerdam were murdered by a former partner; Whereas on June 28, 2022, a five -person jury established as part of a coroner's inquest into the events of September 22, 2015 delivered 86 recommendations; Whereas specific legislation addressing family and domestic violence has been passed by six provinces and three territories; however, Ontario has not implemented this type of legislation; Whereas the Violence Prevention Coordination Council of Durham (VPCC), which represents 35 local agencies including Bethesda House, Luke's Place, Herizon House, Victim Services, and the Durham Rape Crisis Centre, reported a significant increase in demand for assistance from local IPV support providers. In the fiscal year 2021-22, Durham Victim Services supported 4,438 victims of Intimate Partner Violence, up 32% over four years and supported 916 victims of Sexual Violence, up 277% over four years. The four local shelters in the fiscal year of 2021/22 served over 500 survivors in shelter, served 4,400 on their crisis lines, and sadly turned away 1,374 victims of gender -based violence. In 2022/23 fiscal years the numbers increased, serving over 600 (20% increase) survivors in shelter, served 6,047 (37.5% increase) on the crisis lines, and regrettably had to turn away 1,886 (37.2% increase) women and children seeking safety in our shelters; and Whereas the City of Ottawa, Renfrew County, and Lanark County have passed motions declaring an IPV epidemic, and acknowledging the 86 recommendations in the Renfrew County Inquest; Page 456 Municipality of Clarington Page 6 Report CAO-015-23 Now therefore be it resolved that the Municipality of Clarington supports the Region of Durham who have declared IPV an epidemic and call on the Ontario Government to do the same, as per recommendation #1 of the Renfrew County Inquest; That the Region of Durham integrate IPV into the Region's Community Safety and Well -Being Plan, as per recommendation #10 of the Renfrew County Inquest; That Staff investigate the recommendations of the Renfrew County Inquest and report back on which recommendations could be implemented by the Municipality of Clarington; and That this motion be distributed to all Durham MPPs, the Ministry of the Attorney General, the Ministry of Women's Social and Economic Opportunity, all lower -tier Durham municipalities, Durham Regional Police Services Board, Renfrew County, and the Association of Municipalities of Ontario. 2.15 Staff will follow up on the resolution and report back to Council in November 2023. 3. Financial Considerations Not Applicable. 4. Concurrence This report has been reviewed by the applicable Directors who concur with the recommendation. 5. Conclusion It is respectfully recommended that Council receives the report for information. Staff Contact: Amanda Welsh, Executive Assistant to the CAO, 905-623-3379 x2018 or awelsh clarington.net. Attachments: Not Applicable Interested Parties: There are no interested parties to be notified of Council's decision. Page 457 Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Joint Committees Date of Meeting: June 19, 2023 Reviewed By: Mary -Anne Dempster, CAO File Number: Report Number: CAO-016-23 Resolution#: By-law Number: Report Subject: Communications Division Service Delivery Review Recommendations: 1. That Report CAO-016-23 be received; 2. That Council endorse in principle the recommendations contained in the Communications Division Service Delivery Review prepared by Redbrick Communications (Attachment 1 to Report CAO-016-23) and prepare an implementation plan; 3. That Council endorse the recommended staffing structure as set out in this Report, inclusive of two new full-time positions to be funded out of gapping and reserves in 2023, and included in the 2024 budget; and 4. That all interested parties listed in Report CAO-016-23 and any delegations be advised of Council's decision. Page 458 Municipality of Clarington Report CAO-016-23 Report Overview Page 2 Communications and public engagement are critical pieces of effective municipal government, and Council has continued to highlight the importance of the function and the need to ensure that our residents are appropriately heard and informed. The Communications division has undergone staffing and responsibility changes in recent years, but no formal review had been undertaken to ensure they are adequately resourced and structured to meet the needs of the community, both now and into the future. Redbrick Communications undertook the review and has provided a series of recommendations, most notably an enhanced structure and service model. The proposed structure would see the division continue to reside in the Office of the CAO, but with additional resources focused on communications planning and strategy, issues management and public engagement, and digital media — areas that are notably under-resourced. This would bring the staffing complement more in line with comparator municipalities, as listed in the report. 1. Background 1.1 Through a Request for Proposal (RFP) process Redbrick Communications (Redbrick) was selected to undertake the review. The scope of the review included: • provide insights into the current structure and suggestions for enhancement • clarify the role and function of the team • provide insights for future budget, staffing and resource decisions to create a high - functioning communications team • ensure the organization can meet community needs for years to come. Process 1.2 To inform their recommendations, Redbrick included an analysis of both quantitative and qualitative data. The quantitative data included population numbers, digital and web analytics, as well as survey results. A summary of qualitative feedback included input from interviews with staff, members of Council and input from comparable municipalities. This resulted in seven recommendations which provide the basis of this report. 2. Service Delivery Review Recommendations 2.1 This overview is intended to provide Council with a summary of key improvements and implications that can be expected because of the recommendations contained in the Redbrick report. Page 459 Municipality of Clarington Page 3 Report CAO-016-23 Recommendation #1 - Strengthen the communications team structure 2.2 The proposed divisional structure would break the work into two main service areas, Communications and Public Engagement and Creative Services. 2.3 Both areas would be led by a supervisor, reporting to the existing Manager of Strategic Initiatives. There is strong integration by reporting through this position, given the scope of the portfolio, seat at the Senior Leadership table, and a direct reporting relationship to the CAO. This model also reduces the need to add another Manager to the complement, with the former resource being re-scoped, as noted below. 2.4 Communications and Public Engagement - Staff Team Supervisor, Communications and Public Engagement (re-scoped Manager position) Advisor/Officer, Communications and Public Engagement (position requested) 2.5 Utilizing a business partner approach, the two staff members will be assigned to departments to support the development and execution of communications plans (internal and external), as well as support proactive public engagement. At a high level, they will be responsible for: Communications planning and execution (business partner approach) Public engagement (advice, coaching, engagement -oriented business solutions) Issues management and media relations 2.6 Creative Services - Staff Team Supervisor, Creative Services (elevation of existing Specialist) Coordinator, Digital Communications (position requested) Coordinator, Communications (2 existing staff — title and scope to be reviewed) 2.7 Staff in this area will prepare tactical items to support communication plans and outreach efforts. It will also include coordination and oversight of digital assets (web/ social) and to ensure that public -facing technologies are customer -centric. At a high level, they will be responsible for: Coordination and oversight of digital assets (E.g., website, social media, other public -facing technologies) Brand Management (own the brand and its use, inclusive of advertising acceptability) Collateral design (public engagement and education, marketing, and promotion) 2.8 Redbrick noted that corporate customer service requires further consideration, which ties into the ongoing Customer Service Excellence Strategy being undertaken by our Page 460 Municipality of Clarington Report CAO-016-23 Page 4 Corporate Performance division. This strategy will make a recommendation as to where the management of this program will reside, and it is expected that the Communications division could be where it eventually lands. Recommendation #2 - Strengthen Clarington's issues/risk management approach 2.9 The Communications and Public Engagement area will be the lead resource for all departments regarding issues management. It is expected, with the recommendations noted above, that this dedicated resource and expertise will allow for issues to be proactively managed and mitigated earlier. Clarington needs to be able to be proactive in this area or run a significant risk of losing control of issues that otherwise could have been avoided or more appropriately managed early. 2.10 The Supervisor will be responsible as the lead for any escalated issues, inclusive of media relations efforts. This will require a specific skill set and experience. It has been included in the structural recommendations as a net -new resource. The Advisor/Officer reporting to this position will provide support on the issues management and media relations side. Recommendation #3- Invest in more purposeful public engagement 2.11 The strategic plan will provide an opportunity to articulate Municipal goals and expectations related to public engagement clearly. Staff will utilize the Council - approved public engagement framework to undertake that work, in parallel to the adoption, execution and reporting against an eventual Council -approved strategic plan. The new Communications and Public Engagement area of the division will have the responsibility to act as the point of contact and advisor for these efforts. 2.12 A central component of effective public engagement is to "go where the people are", including attending notable community events. The current approach is department specific, creating potential missed opportunities if there is a larger corporate message to be shared. Staff will be looking at that processes to determine if this responsibility should be centralized to make our approach more effective and streamlined. Recommendation #4 - Increase positive storytelling, the ability to communicate quickly and share timely factual information 2.13 Empowering departments to "own their story" will be a critical component of implementing this recommendation. Staff will work with departments to set the expectation that they play a key role in telling both their departmental and the overall corporate story — within and outside of the organization. A process will be created, through the proposed business partner approach, to ensure that more good news stories are proactively captured and disseminated (internally and externally). Page 461 Municipality of Clarington Page 5 Report CAO-016-23 2.14 The way information is consumed is changing, and digital content will continue to be a critical part of the mix. Combining video with an increased focus on photos, in the context of storytelling will be a key part of driving home messages to our residents. These two components will be included in the responsibilities of the proposed Digital Communications Coordinator. This will create a more robust corporate story that can be told and used to be proactive on items of community importance. Recommendation #5 - Establish a stronger communications mindset across the organization 2.15 Staff will work with Senior Leadership Team to clarify roles and expectations for effective communication throughout the organization. This will include a policy that clearly stipulates roles and responsibilities when it comes to internal communications and expectations around timing/frequency — both from the department responsible and the communications division. 2.16 Monday.com is a digital tool that the Communications team currently uses to manage tasks and projects and it has significant reporting capabilities. Staff will use this data to report to Council and staff on a regular basis regarding the communications efforts and outcomes (internal and external). This will include a semi-annual report to Council. Recommendation #6 - Place more focus on internal communications across the corporation 2.17 There are challenges with information flow internally, particularly on larger corporate projects, as outlined in the survey results. This can be mitigated through the creation of communications plans, as part of larger project plans. Each department must ensure they have a project charter, or comparable document, to govern the interaction with Communications, particularly for larger initiatives, with a communications plan layered in. Communications staff will support the department in the design and execution of the communications plan aspect of the project, inclusive of collateral design. 2.18 A new section will be added to the end of Committee/Council reports entitled, "Communications and Public Engagement Considerations". It is expected that this will provide a venue for departments to ensure they have collaborated with communications early enough in the process. This should support the overall corporate intention to move from reactive to proactive. 2.19 Communications staff will hold quarterly meetings with departments, where the departments will share information about the projects, they have, on-going/upcoming, key issues on the horizon and other notable items. Page 462 Municipality of Clarington Page 6 Report CAO-016-23 Recommendation #7 - Enhance Clarington's Brand Consistency 2.20 There is a need to ensure that the Clarington brand is used consistently across the organization and that oversight is strengthened. The Communications Division should be the owner of the Municipal brand. Any departmental communications work will require collaboration with the Creative Services area to ensure appropriate and consistent use of branding and that respective guidelines are adhered to. 2.21 Moving forward, all high -visibility signage (e.g., gateway, parks, facilities) will be managed from a design perspective through this division, inclusive of a review of all current assets to ensure consistency where appropriate. 3. Financial Considerations 3.1 The estimated 2023 financial impact (all wages presented as fully burdened), for the remaining 6 months, would be $233,320.20. This would be offset by gapping from the former Managers' salary, in the amount of $156,218.93. The estimated net impact for 2023 would be the difference between the two numbers, $77,101.27. 3.2 The 2024 budget impact, assuming the Supervisor positions were at a Grade 8, and the Officer at Grade 6 would be $254,459.83 (net of the $187,724.33 that would be allocated against the total, from the existing Managers' salary). 4. Concurrence This report has been reviewed by the Deputy CAO/Treasurer who concurs with the recommendations. 5. Conclusion It is respectfully recommended that Council support the recommended structure and required resources, to allow for an increased focus on proactive communication and public engagement. Staff Contact: Justin MacLean, Manager — Strategic Initiatives, Jmaclean@Clarington.net. Attachments: Attachment 1 — Communications Division — Service Delivery Review Page 463 Attachment 1 to Report CAO-016-23 Communications Divi Service Delivery ReviE Municipality of Clarington June 2023 • redbrick 40 COMMUNICATIONS MAL Page 464 Table of Contents Introduction and Background ............................................ 3 Project Objectives........................................................ 4 Scopeof Work........................................................... 4 Methodology............................................................ 4 Key Themes: What We Heard ............................................. 5 Comparable municipalities .............................................. 13 Clarington - Current Communications Context with Observations........ 23 Best Practices...........................................................27 Analysis................................................................ 30 Recommendations...................................................... 32 Conclusion.............................................................64 Redbrick Communications I Communications Division: Service Delivery Revie PRAP Wunicipality of Clarington Introduction and Background The Municipality of Clarington is one of the province's fastest growing communities. Situated just an hour outside of Toronto, it's not surprising that this region is attractive to newcomers. It offers the best of both worlds - offering big -city amenities and close proximity to major highway routes for commuters and cottagers alike, while also keeping its'small-municipality'feel, and quiet lifestyle. As the community grows, so do the expectations from its tax base. There is growing expectation that their governments are responsive beyond the typical 8:30 a.m. to 4:30 p.m. working hours, especially as issues arise. More than ever, municipalities need the ability to communicate quickly. The make-up of communities is changing, as new residents expand the diversity of communities. Municipalities need to demonstrate in all they do that they are welcome to all. Residents also demand a stronger voice in decision making. Internally, departments and communications teams are working to keep up. They are finding shifts are needed to set realistic expectations and meet both public demands and legislative requirements. From a communications perspective, the landscape has changed dramatically over the past several years, and especially since the COVID-19 pandemic. Two recent public relations research studies',' speak to the evolving trends and challenges for the future of communications and public relations professionals. Highlights include: the rise of mis- and disinformation because audiences are empowered to publish content online, the decline of journalism, a growing lack of community trust in their governments, and the rise of Artificial Intelligence (AI) tools, to name a few. Each of these puts pressure on municipal communications teams as they work to inform and engage their communities. Effective, strategic communications plays a critical role in building public confidence in municipal decision making and service delivery, and an understanding of how municipal governments operate. When done well, communications strengthen trust between a municipality and its constituents. Expanded efforts to connect with Clarington's 105,000 residents, plus the need to internally engage with Clarington's municipal staff, has put growing pressure on the municipality's communications department. The recent departure of the Municipality's communications manager triggered an opportunity to take a step back and review the organization's communications function and structure before initiating the recruitment process. The Municipality of Clarington engaged Redbrick Communications to conduct a review of their communications function, team structure and activities to identify opportunities for improvement for a more organized, consistent approach to better meet internal and external needs. This review will also help prepare the organization to meet future needs of a growing community and changing communications landscape. - Daniel Tisch, President and CEO for Argyle Public Relationship, former Chair of the Global Alliance for Public Relations and Communication Management 'Looking back -Looking forward: Insights from Communications Leaders into the future of Public Relations, 'The Elevation of Public Relations, A discussion der on a profession's present— and its possible future, Dr. Terry Flynn, Director Master of Communications Management, McMaster University Dan Tisch, APR, FCPRS, President and CEO for Argyle Public Relationship and past chair of the Global Alliance for Public Relations and Communication Management Redbrick Communications I Communications Division: Service Delivery Revie Wl�eor4 unicipality of Clarington 3 Project Objectives As the Municipality grows, there's a need to enhance and build-up communications capacity, while also focusing on overall structure and function. These efforts also need to align with Clarington's strategic plan, currently under development. This review will provide recommendations to help: • provide insights into the current structure and suggestions for enhancement • clarify the role and function of the team • provide insights for future budget, staffing and resource decisions to create a high -functioning communications team • ensure the organization can meet community needs for years to come. Scope of Work Project Public survey and comparable kicks off municipal research • • 1 •1 Internal inTervi, and survey Methodology Final report and presentation ummary o�findings and preliminary recommendations [7 This review includes analysis of both quantitative and qualitative data. Quantitative includes numbers such as population, digital analytics and survey results. A summary of qualitative feedback includes input obtained from confidential interviews with internal staff and members of council, online survey comments, and best practices from three comparable municipalities. Here is the breakdown of the research conducted: ✓ A full review of communications materials, supporting documents and council reports provided by the Municipality ✓ Ongoing discussions with the project leads ✓ Internal survey (112 respondents) ✓ Interview with the CAO and the Manager of Corporate Performance ✓ Individual interviews with communications staff ✓ Meetings with individual councillors and mayor ✓ Six interviews with Department Heads and managers ✓ Public survey (124 respondents) ✓ Three meetings with local media ✓ Meetings and analysis of two comparable municipalities (City of Pickering, Town of Milton) ✓ Interviews with two communications consultants (former recent municipal communications directors for the City of Richmond Hill and East Gwillimbury; City of Mississauga) ✓ Findings from a 2021 review of several municipal communications division structures ✓ Best practices derived from 35 in-depth interviews with municipal communications leads in the past four years alone ✓ Findings from two recent communications and public relations research studies, and presentations by their authors at the June 2023 Canadian Public Relations Conference ✓ Redbrick Communications'20-year history and expertise working in the municipal sector Redbrick Communications I Communications Division: Service Delivery Review Rert: unicipality of Clarington 4 Key Themes: What We Heard Mayor and Council Overarching themes: • Council feels well supported by communications, and well - prepared for meetings, public -facing events, and media moments. • There is an understanding that the communications department lacks resources, and Council is supportive of the team growing and also supportive of trying new methods of communications. • Council would find value in reports that show the workload and/or achievements of the department. These reports would help council understand the "why"of communications and how their work brings values to the Municipality and Council priorities. • Council perceives that the public wants to be better engaged on municipal "hot topics" like development, roads projects and council decisions. • Council is unsure if external communications is effectively reaching all audiences. Summary of feedback heard: Clarington's Mayor and councillors all expressed a genuine appreciation of communications staff. They reported that the working relationship between council and staff has improved significantly over the last six months. There's a general feeling that communications staff do a great job of supporting council with information and assistance when the need arises. They recognize that since COVID-19, public expectations for communications and hybrid meetings has put a lot of pressure on municipal staff. With an expectation from residents for enhanced, broader communications, Council recognizes additional resources may be required within the department, along with more defined staff roles and responsibilities. Council doesn't currently receive consistent reports from the department. Regular reports would help Council members better understand the workload, current projects, and achievements of the communications department and how they support initiatives across the organization. Council expressed the importance of providing a mix of print and digital communications, like Clarington's quarterly newsletter. However, there are mixed opinions about what medium is most effective and the best use of taxpayers'dollars.There's concern the senior demographic is being missed with so much emphasis on digital media. Currently, there's not enough data or analytics to know. There's also a concern that print media isn't being used to its full capacity. Proactively reaching out to more national publications about Clarington's good news stories may be helpful. In terms of their own communications, some of the councillors noted they aren't active on social media, but recognize that discussions, comments and concerns about municipal decisions and initiatives often happen online. They report wanting to have more awareness about online discussions, the pulse of the community and to be kept informed if there are opportunities for them to follow up with constituents to help correct misinformation or help residents better understand the decision -making process. They want to ensure the community feels connected to its Council and look to communications to help bridge that gap where possible, especially online, to mitigate any perceptions where residents may feel their councillors are not responsive. Redbrick Communications I Communications Division: Service Delivery Revie pPA orMunicipality of Clarington Ideas for improvement: • Better analytics and data to understand which forms of communications have the greatest impact. • Regular, detailed reports coming from the communications department to Council that include measurable results and demonstrate how the department is working towards achieving the council approved vision, goals, and priorities that will shape the Municipality's Strategic Plan. • More real-time coverage of community events where council is present to share on social media. • Increased ability for councillors to respond and communicate quickly with their constituents - support for them to post on their own social media channels. • Enhanced public participation and engagement on municipal decision -making. • Humanize stories. Celebrate the success of the Municipality through the people who live here. Celebrate the voices and the people in the community. • Tell the good news stories of people who work at Clarington. • Use local and national media more often. Send press releases and photos. Develop new relationships with journalists outside of the region for bigger stories. Staff The CAO at the Municipality of Clarington is committed to continuous improvement and modernization. Through this service delivery review, key goals include ensuring a more proactive and strategic approach to communications, clear roles and responsibilities, better standards that tie with customer service goals, consistency of brand and messaging and stronger story telling. to timely and consistent information on many different platforms, taking a proactive approach to issues management, and working with departments to ensure the community has a voice. Staff across the organization recognize that the Municipality's communications team works hard and is pulled in a number of directions. However, because they are unaware of the team's priorities and workload, currently, there is uncertainty in a number of areas: • What the team's priorities are • What is within their scope of work • How they are best engaged and brought into a project • Expectations for timelines • The roles and responsibilities between communications and departments From an internal communications perspective, both the interviews and the survey results showed that staff take pride in the work they do everyday. They want to feel more engaged and involved in their organization and feel valued for their contributions. As the Municipality has changed and evolved over the past several months, staff feel somewhat disconnected from the broader team and other departments. They are looking for a stronger sense of one team and one Municipality, and to work collaboratively with others. Finally, staff feedback points to the need for greater community engagement and two-way conversation with those they serve. They are unsure where this role lies, but feel communications likely plays a part. Overarching themes: They see the role of communications as taking a lead to bring Communications is reactive, rather than proactive. Information the organization together and working collaboratively with is not always sent in a timely manner, especially in response to departments, protecting and promoting a strong brand identity for issues. There is a feeling of often needing to "catch up': the Municipality, ensuring the community is informed and has access Department is under-resourced. Roles aren't clearly defined. Redbrick Communications I Communications Division: Service Delivery Review �eport:Vunicipality of Clarington 6 • Work is assigned based on capacity rather than skillset or department subject understanding. • Department leaders would like more planned communications to work ahead with the team to potentially develop annual plans or to improve strategic communications planning tied to their business goals so they can be more proactive and tell a stronger story. • Departments work in silos. As a result, they are unaware of workload and priorities that the communications team faces. They would like a regular and clearer picture of communications projects and plans. • Staff from both the departments and communications feel that the pressures of day-to-day work does not currently allow for more in-depth storytelling or campaigns that take more time to plan an execute. They both desire stronger processes and policies to help address these challenges and make communications activities more efficient. Staff want stronger internal communications. They want to be informed and engaged. Currently, internal communications is not seen as a focus, and staff who work in the field or do not have easy online access do not feel connected nor informed. Website needs improvement to complement external communications efforts. General feedback from what we heard: We interviewed staff from both communications and other Municipal departments. The opportunities and challenges identified generally aligned. Each recognize the need for better processes and functions, clearer understanding of the roles each play and a desire to be more proactive and timely in reaching both internal and external audiences. Communications is the department that staff feel works closest with the Clarington community. Their role includes the development of messaging, overseeing the Municipality's brand, and telling stories in a way that's clear, concise and timely. Internally, across the organization, there is a feeling that teams are working in silos. Staff feel segregated from each other. Since the structural reorganization in 2019, there's a general feeling that many staff at Clarington don't really know one another and want a culture that is more collaborative and connected. Staff also want to feel engaged and included internally, but don't always feel like they're receiving enough information, and tend to hear about internal corporate decisions "through the grapevine"This impacts morale, especially for frontline staff who engage with the public on a daily basis. Departments engage the communications department in different ways - some by phone, some in person, some by email and some using the online portal form. As indicated earlier, they are unaware of the demands put on communications staff. They recognize that communications is under-resourced, but don't have a clear indication of what staff are working on outside of their own requests. Departments want to be helpful in ensuring the Municipality communicates effectively. They understand they have a role to play in effective communications and want to be more proactive and engage communications earlier in their initiatives. Some departments would also like to be trusted with developing and managing some of their own day-to-day content for social channels. From a communications perspective, the team desires more consistency in process and engagement. They want one way they are engaged for easier tracking and reporting, higher standards met with the information shared with them at the outset, consistent ways to collaborate, share feedback and manage approvals and to close the loop when work is complete. Redbrick Communications I Communications Division: Service Delivery Revie pRA or4'M'unicipality of Clarington A consistent theme for improving external communications was improving the Municipality's website. As a central tool for sharing information staff across the organization feel the site is difficult to navigate and reported regularly having difficulty finding information. As well, more clarity and guidance is needed for roles and responsibility in writing content and posting to the website, and greater oversight for quality and meeting best practice web standards and legislated accessibility requirements. As an overarching theme, staff recognize that Clarington would benefit from a stronger corporate direction for communications. Suggestions for improvement provided by staff in the comments section of the survey: • Ensure all staff from all departments are kept better and more consistently informed and engaged. • Develop an internal communications strategy and make better use of The Hub and email blasts. • Offer more ways for staff to network, get to know one another, and collaborate to create a stronger sense of team and improve overall staff morale. • Build stronger collaboration between departments and communications to help strengthen a more proactive approach. • Implement a way to better plan for annual communications (e.g., holidays, municipal events, recreational programming) • Create a process to help the Municipality tell the good news stories and achievements of the corporation, its staff and departments. • Engage staff from other departments and bring them in on projects when appropriate. • Staff shared several ideas for storytelling or campaigns, such as: how Clarington is addressing rapid growth, new trails, parks, and overall community improvements etc. Acts of kindness, stories that show a strong sense of community Redbrick Communications I Communications Division: Service Delivery Revie pRg or4 Aunicipality ➢ Survey Results The staff survey highlighted similar key themes to what we heard in the interviews. Data also amplified how staff are currently receiving Key themes included: • more proactive issues management and responding more quickly and effectively information and where there are opportunities for improvement. staff across the organization wanting to be better informed • more consistency with the Municipality's brand and messaging • strengthened public engagement AM& Am Internal Survey Highlights Number of respondents: 112 Top three ways staff get most of their information about what's happening at the municipality. 41% of employees feel strongly that they are informed about municipal information and updates. 27% a said they do not feel well informed. 85% 68% Q F .0-S] of respondents said they want they said they do not feel _ f _ � feel their work is important, and they � � they get to be involved want tofeel engaged in their work. in decision making. 67% 64% 60% "word of mouth" learn from a get their manager or information from supervisor all -staff emails. 42% of respondents said they don't feel residents receive enough information or correspondence from the municipality. Commentary. Word of mouth and information from managers and supervisors are the top ways staff receive information. This opens a risk to inconsistency and potential misinformation. All -staff emails are relatively effective and could be leveraged more. More than half the staff feel they are somewhat informed or not well informed. The Municipality needs a stronger vision and processes to ensure staff get the information they need and feel engaged where they work. 46% ID of respondents do not feel residents understand what their department does. Redbrick Communications I Communications Division: Service Delivery Revie PPAP 4 f&icipality of Clarington 9 In terms of external communication: 80% 60% of respondents feel the said phone or municipality's main line email. of communication is social media. 37% of staff feel the municipality's brand is strong. 63% 0said Clarington's social media presence is strong. 30% said Clarington's social media presence is strong Commentary: Staff feel that the public is generally not aware of all the Municipality does for its community. Social media is an effective tool, but could be used more better. There is also a sense that the Municipality's brand should be strengthened. There are several audiences being missed with external communications efforts. The top three are: IN ser�-- newcomers to people with Clarington limited and/or rural internet access The top three priorities for better overall communications are: • Better internal communication with staff • More meaningful public engagement • Improved, more proactive issues management (getting on top of things sooner.) Staff are important communicators on behalf of the organization and could be better leveraged to share information and be champions when they are engaging with residents. Staff desire more information and want to help the Municipality strengthen its connection with the community. Redbrick Communications I Communications Division: Service Delivery Revie pRAP 4'M'unicipality of Clarington 10 External Survey Highlights Number of respondents: 124 As we often find in external surveys, residents are most interested in • Respondents were almost equally long-term residents (more than the topics and information that effect their local quality of life or that 15 years spend living in Clarington) and newcomers (less than 15 are highly visible to them on a regular basis: events and programs, years.) roads and construction, development etc. • 52% of those surveyed said they currently feel they are receiving Different from what we saw from the internal survey, only 29% of too little information and communications from the municipality. residents who responded rank social media as one of the top ways they receive information about the Municipality. Most used Facebook (86%), however 53% of respondents said they don't follow the Municipality on social media, and 25% said they get their information from channels not run by Clarington. These statistics create a risk that the community may not be getting factual information and that others'content is more engaging and interesting. The website and local media coverage ranked much higher that social media and will need to be considered going forward to better reach the community. Generally, residents who responded say information on the website is somewhat easy to find, but as we heard from staff, there are opportunities to make it better. In terms of public engagement, 33% said they feel the Municipality is effective in providing opportunities for the community to give input into local programs, services and decisions. 42% were neutral. However, most who responded (59%) said typically participate if asked. 36% said they would sometimes participate. 96%feel it is important to provide input and be engaged by the Municipality. When interpreting these statistics, it's important to remember that the feedback is coming from more engaged individuals who are The top five topics residents want to hear about are: • Events run by the municipality (82%) • Municipal programs and services (82%) Updates on roads projects (78%) Emergency updates (73%) Updates on building projects and new development (72%) In terms of staying informed about these topics, the survey shows the top three ways residents most often receive their information are from: The municipal website (55%) Reading or listening to local media coverage (49%) Social media pages operated by the municipality (29%) People were asked to identify which media outlets they read, view or listen to most frequently. The top answers were: • Clarington This Week (35%) • Durhamregion.com (19%) • KX96 or 94.9The Rock or CKDO Durham's Classic Hits (19% • Additionally, 19% of respondents said they do not pay attention to local media. likely to complete these surveys. An online survey such as this in only • 87% of those surveyed said they visit the Clarington.net website. one way to gather input. It may not have reached a broad audience, Of those, 64% said they visit monthly. nor those who prefer other methods of engagement. Redbrick Communications I Communications Division: Service Delivery Revie PIRAP 4 Aunicipality of Clarington 11 • In terms of website accessibility: 64% said information is sometimes easy to find 13% said information is always easy to find 23% said information is NOT easy to find • 86% of respondents indicated they have a Facebook account, but only 41 % of those people are following Clarington's Facebook page. 53% indicated they don't follow any of Clarington's social media accounts. • 87% of respondents said if they have an issue they directly call or email the municipality. • In terms of public engagement: 59% said when offered, they participate in public input. 36% said they sometimes do. 5% said they never do. 97% of respondents said it's important to them to be engaged by the municipality on decision -making matters. `qw Local Media Overarching themes: • Local media resources are shrinking. The work coming from the communications department is very helpful. • Communications materials are well -written, concise, and in the proper format with high quality photos. • As newsrooms continue to shrink, they rely on municipalities to share their own news. As local newsrooms continue to lose staff, municipal communications departments have to take a greater role in becoming their own style of newsroom. This means knowing deadlines and sending timely information to local media outlets, and having their eyes and ears out in the community for stories that have a municipal angle. Local media has a great rapport with Clarington, recognizing that staff make a conscious effort to include them in email blasts and sending news releases. Suggestions for improvement: • Be aware of deadlines. • Ensure councillors and staff are returning interview requests. • Notify local media outlets when they've made mistakes or factual errors. It's appreciated and helps them ensure they're doing a good job. • Share video for use on web -based media publications. Redbrick Communications I Communications Division: Service Delivery ReviewIRA or4'M'unicipality of Clarington 12 Comparable municipalities Municipal communicators across the province face similar challenges in their communities. Although structures may vary, their organizations often deliver like services; they share similar values of accountability and transparency with their communities; and, they strive to provide timely information. Each looks to demonstrate value for taxpayer dollars and to continually find new ways to broaden their reach and engage more residents and stakeholders in their local government. Therefore, an important part of any communications review process is to look to how other comparable municipalities structure their communications function, what processes they have in place within the organization to run efficiently, what practices and tactics have been successful in reaching audiences, where they may have adjusted or invested in the past few years and what they are doing now to plan ahead to better meet community needs. For the Municipality, Redbrick identified three comparable municipalities to reach out to based on a few factors: • Population size • Similar challenges related to growth • Representation in Ontario's Big City Mayors • Recent focus on enhancing the corporate communications function Interviews were conducted with the City of Pickering and the Town of Milton. We have identified the City of Kitchener as a third municipality. However, we faced problems with scheduling and competing priorities and were not able to connect in time for this report. In addition, Redbrick conducted brief interviews with two communications consultants who have been recent municipal communications directors. One was a communications director for the City of Richmond Hill, and then the Town of East Gwillimbury. The other was the former communications director at the City of Mississauga. These interviews focused on workload assignments within their structures and the considerations for their chosen models. Further, over the past four years, Redbrick has conducted nine communications review projects, varying in scope. Each has included interviews with municipal leaders across Ontario and a few from four other provinces. As a result, Redbrick has recent data and insights from more than 35 municipalities. Redbrick also pulled insights gleaned from the agency's connection with network of hundreds of municipal communications leaders, and our 20 years'work with and for municipal governments and the associations that support them, such as the Association of Municipalities of Ontario, the Rural Ontario Municipal Association, the Municipal Finance Officers'Association, to name a few. Lessons learned by others and their best practices help inform the recommendations for the Municipality of Clarington. Redbrick Communications I Communications Division: Service Delivery Revie wRef or4 Municipality of Clarington 13 Pickering Following a communications review conducted by Redbrick in 2019, then updated with current data in 2021, the Municipality has placed more emphasis on improved strategic communications. They created a new Division Head of Public Affairs, Communications, Customer Care, DEI, Mayor/Council, with a seat at the most senior table. They also created a new supervisor position in communications to provide more strategic oversight and support the division head. They are looking to add two additional communications roles in the coming years and to strengthen the relationship between communications and customer service, recognizing the synergies between the two. Work comes into the department through email and/or in follow up to senior or department meetings. The Division Head leads high - profile and sensitive files. The supervisor has the most face-to-face connection with department clients, and then assigns work to the other staff who work mostly on a portfolio model. They are putting more effort on improving public engagement. They have launched Let's Talk Pickering (Bang the Table) and offering more pop-up opportunities to hear from the community at events they attend. There is no current corporate framework in place. Planning leads most engagement with support from communications. Social media continues to be the more effective tool to reach the community. However, there is concern that seniors may be missed. The Municipality is looking to survey the public to better understand what other tools they could leverage more to reach a broader audience. The team's relationships with local media are good. Key spokespeople are the CAO, mayor and directors, who can assign others to speak as appropriate. They are planning upcoming media training to strengthen media responses. The Municipality is also developing its first ever strategic plan, which they anticipate will help strengthen the strategic value communications can bring and ensure their work aligns with corporate priorities. They have put focused effort on preparing the community for growth and have been recognized for their approach. They are leveraging more video than ever before, and having some challenges keeping up with demand. Their greatest challenge is bandwidth. However, with the shift to having a Division Head role, they are seeing increased support from the CAO and stronger trust with department leaders. Redbrick Communications I Communications Division: Service Delivery Revie pRA ort unicipality of C Milton Milton's communications structure has evolved over time. The director has worked over the past few years to educate departments on the role of communications and the value the team should be bringing to the organization. There has been significant focus to tie all communications work to business objectives and to be less tactical. They are seeing these conversations and relationships paying off. Leaders look to the director and manager for strategic advice and counsel, and are approaching the team less from a tactical standpoint. They have an online intake form for projects. They use Monday. com to manage, track and report on workload and projects. They use Monday to map out annual campaigns and assign work, so all team members know what's coming and can plan ahead. They have agreed -upon Day of Recognition that are also mapped out. Each corporate strategic project has its own board and is tracked and managed accordingly. The manager reviews all incoming requests and assigns projects to advisors or to the web coordinator. They have a set standard that departments will get a response within two business days and know who their project lead will be. They develop annual plans with departments, understand their business needs and meet regularly to stay on track. In some cases, such as with the Fire Department and Economic Development, they have three and five-year plans in place. This allows them to plan ahead, assign resources and have an agreed -upon road map to guide work. Growth is a significant concern for the community, especially those who are long-time residents. The team is working on building a stronger growth story for the Town and listening to the community to set the stage for development and help show what the Municipality will look like over the coming 10 to 20 years. Redbrick Communications I Communications Division: Service Delivery Revie pPA or4'M'unicipality of Clarington 15 Summary of insights from municipal communications leaders and Redbrick's 20 years' expertise Redbrick is unique in how we are embedded in Ontario's municipal Below are best practice highlights based on our past projects, community. We support municipal communications managers, CAOs engagements and experience. and elected officials and are committed to helping them share best practices. We regularly provide free resources and guides, and bring Municipal Communications Investments them together to share experiences, such as when we offered four Over the past five years, municipal communications leaders tell us municipal communications panel discussions during the early stages they are putting more investment and focus in three main areas: of the pandemic. 1. Digital storytelling and transformation As well, for the past 15 years, Redbrick's president has chaired the 2. Public engagement Summers Direct Municipal Communications Conference - Canada's 3. Customer service alignment largest national conference for municipal communicators. Further, over the past four years alone, Redbrick has held in-depth They are taking different approaches to strengthen these areas and interviews with 35 municipal communications leaders to understand respond to growing needs, expectations and adapt to new trends. how they operate, structure their teams and lessons they have learned along the way. In addition to our regular client work, Redbrick maintains a Municipal Communicators Network of more than 400 communications managers from across Ontario and the rest of Canada. We use this network to share lessons learned, and to help municipal governments solve problems. Redbrick's clients benefit from our'pay-it-forward'approach to assisting communications managers in need. We have a reputation for being helpful, and when we reach out in search for best practices, ideas and solutions, municipal communications managers are quick to share their insights with us. This has proven helpful in many past projects. For example: • planning and building more capacity in these areas, such as creating new roles for public engagement leads or new community engagement divisions (e.g., City of Guelph). • restructuring the current communications division scope to include customer service (e.g., City of Kingston, Halton Region). • strengthening skillsets of existing staff through training and certification (such as with the International Association of Public Participation - IAP2) • strengthening linkages and collaboration processes between communications and departments who have staff who manage social changes, regularly engage the public or offer customer service • A combination of the above Redbrick Communications I Communications Division: Service Delivery ReviewIRA or4'M'unicipality of Clarington 16 Enhancing strategic value The McMaster research study mentioned in the introduction shows that communications professionals continue to struggle with demonstrating the strategic value they can bring to the organization. It is common for Redbrick to hear from communications staff comments such as, "everyone thinks they are a communicator" or"departments think we only do social media and website:' Developing a communications mindset or culture within an organization takes time and is created by building strong, trusted relationships between communications and department leaders, and by showing successes along the way. High functioning communications team have established these relationships and have been able to institute the following: • Focus is on strategy first, then tactics. When departments engage communications, the first questions from communications are, "What is the problem to be solved?" and "What goals are you trying to achieve?"They then work collaboratively to build a strategy to achieve identified results. • They have a seat at the most senior tables, and all initiatives tie back to the organization's mission, vision and values. Communications is part of strategic discussions, is kept abreast of latest developments and challenges and can more quickly and easily flag brewing issues or provide strategic advice for response. • Clear processes and planning tools are in place, understood and followed across the organization. V A strong connection between communications and customer service means two-way sharing, consistency of messaging and • They function like a newsroom and tell simple, concrete early issues mitigation. stories from start to finish. Communications supports public engagement and work with • Tools and tactics are audience focused and targeted on departments to offer a variety of engagement opportunities outcomes. to reach a broad range of voices, or there is a dedicated public • Social media is used strategically, with a plan and purpose for engagement lead in place. each channel. Redbrick Communications I Communications Division: Service Delivery Revie w�er4 Municipality of Clarington 17 04 Tools More and more municipal communications teams are strengthening project tracking and adopting the use of technology to support monitoring and reporting and public engagement. Function Social media management Most commonly used Social media management Commentary Post and monitor all channels through one platform. Assign tasks to team members. Easy to schedule ahead. Strong analytic and reporting capabilities to track progress. Varying access to reporting tools depending on subscription type. Simple password management. Graphic design Canva (free or paid) Canva is the most user friendly and cost effective. • Adobe Creative Suite Paid Canva accounts offer a wider range of valuable templates and images. Adobe Creative Suite is robust and expensive but is the tool of choice for graphic designers to create the highest quality collateral. Formal training is recommended. Photography Pixabay (free) Visual and video content is far better remembered and has a greater reach than • iStock photo (paid) written copy, especially on social media. • Hiring a photographer to take seasonal local photos Pixabay offers many photos, but may not be at the same quality, nor have the • Ensuring communications same variety as paid content from iStock. and department staff have the tools and knowledge to Telling a local story visually is increasingly more important to build trust and take strong local photos connection with the community. Municipalities are investing in building up local photo libraries from which to draw images. This may include equipping communications staff with a smartphone and/or camera. When possible, it is preferable to use original visual content over stock images. Redbrick Communications I Communications Division: Service Delivery Revie pRg or4'IVl�unicipality of Clarington 18 Function Most commonly used Commentary Public Bang the Table Engagement Bang the Table has penetrated the municipal landscape across the country to engagement HQ enhance online public engagement and two-way connection with communities and government. Participants need to register to participate and resources are needed to promote the tool, keep it current and active, and continually increase visibility and participation rates. Online engagement platforms should be supplemented with other opportunities for input. Project Monday.com Can be used to track workload, resources and timelines, but may be too tactically management Trello focused. • Microsoft Project Offers reports for tracking and raising awareness of workloads to senior leaders • Customized portals and to guide discussions about priorities. Can be used to improve collaborative, proactive planning with departments. Video creation Whiteboard video animation As video has become more prominent, so have the tools available to create them. (there are many Doodly other tools VideoScribe More communicators are able to use their Smartphones effectively to create quick available. These Editing Software videos for use on social media. They are effective and staff should know how to are common Adobe Premier Pro use these to communicate quickly. ones) Camtasia Equipment More sophisticated video software and tools are available, as the organization needed: Create/edit videos on matures related to video creation. Smartphone • Good Adobe Clip Smartphone or . iMovie (iPhone) DLSR camera Boomerang • Tripod • Lighting Royalty -free music • Audio mike Audiojungle.net • Smartphone PremiumBeat stabilizer Shutterstock • Audionetwork.net Redbrick Communications I Communications Division: Service Delivery Review RWA unicipality of Clarington 19 Processes, policies and workflow Municipalities with established processes and policies report the following: ✓ Clear understanding of roles and responsibilities ✓ Improved efficiency with greater understanding of expectations and timelines ✓ Proactive planning and response ✓ Higher trust and collaboration with department staff Workflow tool Related communications function Common policies Media relations • Social media - corporate use and personal use by municipal staff (sometimes for Council) • Advertising and promotional items • AODA (not always overseen by communications) • Use of photos • Election -related communications policies or rules Communications guides Branding and logo guidelines • Writing for the Web guide • Style guides and plain language • Graphic design and photo use • Public engagement framework Processes/standards Project intake with response standards • Timelines for common tactics • Issues management Tools and templates Communications planning template • Public engagement toolkit • Issues management brief • Photo and video release forms • Templates for social media posts, presentations, flyers, etc. Redbrick Communications I Communications Division: Service Delivery Revie pOg orMunicipality of Clarington 20 Trends for the future of communications and public relations Recent communications and public relations research1A provide important insights into the challenges, opportunities and trends related to the profession. As Clarington considers the way forward, it is important to consider this rapidly changing landscape. ➢ Top 5 areas of concern ➢ Megatrends for public relations 1. Staff turnover and burnout 2. Lack of advancement opportunities L4 Higher stakes and rising Empowered 3. Communications perceived as a "soft value of reputation audiences service" by senior leaders 4. Ongoing changes in the media landscape Content shock and Many speak, 5. Digital overload, misinformation and disinformation ��� few listen disinformation ➢ Key opportunities for the profession El Decline of A gap in wealth 1. Internal engagement and connection journalism and trust 2. Bringing strengthened strategic value during times of issues and crisis 3. Becoming a more inclusive and diverse Al comes to PR profession 4. Digital transformation 'Looking back - Looking forward: Insights from Communications Leaders into the future of Public Relations, 'The Elevation of Public Relations, A discussion der on a profession's present— and its possible future, Dr. Terry Flynn, Director Master of Communications Management, McMaster University Dan Tisch, APR, FCPRS, President and CEO for Argyle Public Relationship and past chair of the Global Alliance for Public Relations and Communication Management Pacie Redbrick Communications I Communications Division: Service Delivery Revie 131e o4 rt: Vlunicipality of Clarington 21 ➢ What these mean for communications leaders As communicators look forward, the importance of building trusted relationships both inside their organizations and with their key publics is more critical than ever. This is a strength of communications professionals. They need to take the lead in community building and play a more central role in being an advisor with senior leaders by leveraging their broader view of the organization as a whole and how key audiences perceive it, and align their work with the municipality's priorities. Communicators need to be better listeners and to rely on both their gut and data to influence, persuade and inform, and be able to tell stronger, more engaging stories to combat misinformation and engage communities in the value the organization brings to the people they serve. -Terry Flynn, Director Master of Communications Management, McMaster University Redbrick Communications I Communications Division: Service Delivery ReviewlReorNkunicipality of Clarington 22 Clarington - Current Communications Context with Observations As we look at strengthening and enhancing communications for the Municipality of Clarington, it's important to understand the current context: its community, key issues and external considerations. Each of these inform recommendations about what the communications department needs in order to bring the greatest value to the corporation and Clarington's citizens. Population and Community Since 2011, the municipality has grown significantly. According to census data, Clarington had a population of just over 84,500 in 2011, which now sits around 105,000.The municipality is expected to grow by 45,000 over the next 15 years. It is also expected that increased immigration will attract more cultural diversity. This growth and change in community fabric will continue to put more demands on the municipality as a whole, and in particular, the communications department. It's becoming increasingly important for the municipality to engage with the local community, especially as it relates to programs, services and managing growth and development. It is important that the municipality tells the story of well -managed, progressive growth, and puts emphasis on community engagement for municipal initiatives. Clarington's community wants to be involved, and have its say on programs, services and initiatives that directly impact residents. Residents also want real-time communication, and proactive communications related to events, emergencies and service disruptions. Current Communications Structure and Function Currently the Municipality's communications function sits within the office of the Chief Administrative Officer. With a new CAO joining the municipality in 2022, and the election of a new council, there is renewed interest in improving communications and supporting the department with additional resources. Additionally, there's been a push for the corporation to have a stronger brand presence. A structural reorganization in 2019 resulted in tourism moving out of the general communications department. Another recent structural change resulted in a communications staff member being relocated to the Mayor's office. Since this time, the department has been operating without a manager, and with a smaller staff compliment. The Manager of Strategic Initiatives provides oversight and support. The Communications Specialist oversees incoming requests and project manages workflow. However, there is no established senior communications role to provide strategic direction and counsel. Redbrick Communications I Communications Division: Service Delivery Review unicipality of Clarington 23 Redbrick conducted a recent municipal structure review gathering data from a cross-section of Ontario municipalities ranging in population size from 50,000 to 180,000. Communications leaders provided a breakdown of their full-time equivalent complements, their portfolios and reporting structures. For the size of the municipality, Clarington's staff complement is smaller than that of like -sized municipalities. On average, surrounding municipalities with comparable populations have between three to five more communications staff. Some examples are listed in the chart below. More detailed organizational structure charts have been shared with internal staff at Clarington. MunicipalityPopulation Kingston* 180,000 15 full-time Guelph 150,000 11 full-time + recruiting one contract Whitby 150,000 7 full-time Milton 142,000 7 full-time plus 1 contract St. Catharines 133,113 7 full-time Pickering 105,000 4 full-time, plus 1 part-time for web Waterloo* 104,896 8 full-time Brantford* 98,000 8 full-time plus 1 part-time Newmarket* 91,000 7 full-time plus 1 contract Caledon 82,000 7 full-time Kawartha Lakes 75,000 4 full-time * Data is from 2021 Clarington also has an added challenge with two of its communications staff being unionized. This limits their ability to have access to confidential information in the event of high profile, sensitive municipal issues (HR or labour disputes, for example) for which the department may need to communicate both internally and externally. Municipalities with communications staff in unionized positions are sometimes required to engaged third -party support to manage these issues effectively. All of these circumstances have led to a communications department that is currently under- resourced and becoming overwhelmed. Roles and responsibilities are unclear. Council is not aware of the efforts or outcomes of communications activities. The staff compliment is missing more senior positions to provide strategic advice and oversight, and to mitigate and effectively manage issues. At present, projects that come into the department are assigned based on staff capacity, and other departments are not aware how busy communications staff are, whether there are processes and protocols they should follow to engage communications. A more organized, strategic and well-resourced team, with better -defined staff roles, will go a long way in addressing current challenges and elevating the value the team can bring to the organization as a whole. Redbrick Communications I Communications Division: Service Delivery Revie wRefor4'IVlunicipality of Clarington 24 Communications Landscape Expectations on municipal governments to have exceptional communication with the public has grown significantly since COVID-19. At the same time, trust in local governments has wavered, and the local media landscape has shrunk. Social media and other forms of digital communication have grown as important and dominant channels to inform and engage the community, and residents expect real-time updates, hybrid meeting formats, and a continuation of print -format communications. As result, communications teams need to be their own newsrooms and have strong processes in place to communicate quickly and proactively. Communities expect to be kept well informed about local programs, services and decisions, and to be effectively consulted along the way. For many municipalities, communications teams are finding it challenging to keep up. Media Landscape Clarington has several media publications in the region that offer print and online publications. Those publications have been around for quite some time and know their audiences well. They also have great rapport with the municipality. Although they have limited staff reporters, they've been able to allocate resources to cover council meetings, important community events, and are willing to publish municipal news releases and photos without issue. Even with this media support, it is important that the Municipality functions as its own newsroom and is able to tell a strong story from start to finish. There's an identified gap in the Municipality's communications where good news stories are concerned, and a need for more proactive outreach to media outlets. Issues Management With an increased presence in the digital world, comes increased issues management challenges. What may have been an innocuous situation a decade ago - handled relatively quickly and efficiently - now has the potential to balloon into a much larger problem online. Word spreads fast. Digital video, photos and social media gossip spreads even faster. While many organizations are still figuring out their approach and approving messaging, media have already picked up the story and their audiences are consuming content. The public also has increased expectations related to response and engagement. In high -functioning municipalities, a collaborative, trusted relationship between communications and senior leaders is paramount to successful issues management. Because communications are engaging daily with key audiences and stakeholders and have the tools in place to identify issues early, they are best positioned to give sound advice and craft messaging that works. Currently, in Clarington, the manager of strategic initiatives sits at the most senior table, provides strategic advice and supports work related to communications and issues management. However, given his portfolio, he has limited capacity to be proactive. The Municipality would benefit greatly from having a consistent communications lens available to listen, flag and proactively respond to brewing issues. Redbrick Communications I Communications Division: Service Delivery Revie wOef ortlunicipality of Clarington 25 Public Engagement Clarington's residents expressed a desire to be more involved in municipal decision -making processes, and the ways in which the community expects to be informed and engaged have broadened. Municipalities have always held the responsibility of informing the public about how taxpayer dollars are spent, and have had to make decisions publicly, with very limited criteria allowing councils to make decisions in closed -session meetings. For decades, public engagement has meant some open house public meetings, occasional surveys and the offer that members of the community can delegate at council meetings or send in mailed responses. While these methods may still be relevant, they are no longer sufficient. Now the onus is on municipal staff to inform and include the public in a variety of ways, and public engagement has become a significant area of focus for municipalities. In Clarington, enhancing and increasing public engagement has arisen as a key theme during the development of a strategic plan. Like many other municipalities, Clarington recognizes it will need to invest in improved and more meaningful engagement, and is looking to create a stronger and more purposeful approach to hearing from its community. The new strategic plan will likely more clearly identify specific goals and actions. Depending on the approved direction, there is likely to be a strong role for the communications team. Skillsets and capacity may need to be enhanced. Internal Communications and Engagement Municipal staff are important communicators on behalf of the organization. Many of them engage every day with members of the community, and they can be leveraged as strong municipal ambassadors when they are well informed and feel engaged. Clarington prides itself on providing excellent in -person and phone - based client services to its many residents. A significant part of providing residents with clear, definitive information, is having effective internal communications. Communications staff do their best with limited resources to upload information to The Hub - Clarington's internal intranet site - to help keep staff informed. They also provide all -staff emails from time to time. As is common in many municipalities, external communications is the priority, and internal communications is left with little focus. We also see that who is responsible for internal communications is often unclear. This is the case in Clarington. A vision for internal communications, with clear roles and responsibilities has not been established. What is the role of the communications team vs. that of leaders or other department staff to ensure important Municipal news is shared and known? Staff report hearing news through the grapevine, even through public channels like social media or newspapers. The Municipality has an intranet site called The Hub, but it is not consistently used as a central resource by staff. Reaching all staff is also challenging since some of field, volunteer or seasonal staff, do not have regular access to a computer or do not have a municipal email address. They rely heavily on information sharing from mangers and supervisors, or their peers. Finally, there's a sense in Clarington that staff from different departments don't really know each other, especially after the structural re -alignment of the corporation. With a clear vision and strategy for internal communications, opportunities for networking and engagement could help to break down silos between departments, increase staff morale and sense of value, and create a stronger sense of one team, one Municipality. Redbrick Communications I Communications Division: Service Delivery Review �epor4'IVr'unicipality of Clarington 26 Best Practices Effective communication can play a pivotal role for a municipality and provide tangible benefits. It has the power to persuade, influence, steer, and inspire. Benefits of Effective Communications for Municipalities As we have seen across the municipal sector and based on insights from CAOs, communications leaders and elected officials, when it is done well, communications can accomplish four significant goals: 1. Increase community trust in local government • Higher perception of professionalism and coordination • Greater awareness of how tax dollars are being used • Greater uptake of programs and services • Better media coverage; more community champions; increased positive profile • Higher engagement 2. Save taxpayer dollars • Fewer issues, complaints and calls • Reduced need to engage lawyers for issues management • Mitigated resistance and project delays 3. Inspire behaviour change, improve service delivery • Easier to implement change or new behaviours because there is more buy in and less resistance (e.g., new waste programs) • Inspire collaboration and influence program changes to better meet resident needs • Influence policy changes for more efficiency 4. Improve overall staff morale and trust from elected officials • Staff feel more informed and engaged • Become stronger champions for the municipality • Easier to implement internal changes as needed (for example, new systems or processes) • Elected officials are better informed and prepared to speak with constituents • There is increased confidence in leadership - Sara Goldvine, VP Communications and Public Affairs with BC Housing Redbrick Communications I Communications Division: Service Delivery Review R(e or4 Vrunicipality of Clarington Overarching Best Practices To achieve the benefits noted above and respond to the changing communications landscape, there are several best practices that are ideally in place. These best practices are used as the baseline for the areas of improvement in the recommendations that follow. 6. Data and 1 strategic advisor measurement for listening and proven outcomes 5. Effective tools/room for innovation 2. Aligned with corporate strategic plans 3. Supported by Ztegic strong internal ' processes 4. Consistent corporate story/ brand (Customer Service) Redbrick Communications I Communications Division: Service Delivery Revie wRefor4 IVllunicipality of Clarington 1. Trusted strategic advisor: Effective corporate communications teams are highly trusted and integrated within the corporation. They have a seat at leadership tables. They are considered strategists, not simply tacticians. They are consulted regularly for strategic advice and input for key decisions. They play a role in business strategy and can help craft the narrative when issues arise. As such, they can respond quickly and with quality when issues arise or advise when not to engage. They play a critical role in the organization's risk management team. 2. Aligned with corporate goals and strategic plans: Communications work should be guided by a corporate strategic communications plan (including a social media and public engagement strategies) that aligns with corporate priorities and sets clear direction to teams. These plans are ideally endorsed by Council and allow communications to support every department in achieving their priorities, actions and objectives. 3. Supported by strong internal processes: Every department across an organization should understand the role of communications, how and when to engage them and the policies that guide them. Strong processes instill a communications mindset that means communications is brought in early to project, is seen as a priority, and there is recognition that everyone has a role to play as a communicator for the municipality. Communicators are highly collaborative and should work hand in hand with every department and division. 4. Consistent corporate story/brand: A brand speaks to who the organization is and what it stands for. A strong brand is achieved through consistency: in the messaging and story, and the look and feel of all materials. A strong brand has a clear voice and tone that comes through in every interaction. This is where communications overlaps and aligns with customer service. Both play a significant role in listening and responding to those they serve, and they should be integrated to ensure they are telling the same story and supporting each other. 5. Effective tools and room for innovation: Communication teams should be highly innovative, trying new approaches and technologies, pushing boundaries within their mandate and continuously improving. They should be on top of the latest trends (for example, with social media) and technologies and supported by a culture that is willing to step outside the box. 6. Data and measurement for listening and proven outcomes: Communicators should be driven by data and able to demonstrate the value they bring through measured outcomes, not simply outputs. For example, they should be listening to audiences to understand how they consume content and use that data to inform approaches. They should be able to show increased influence on social media and the ability to manage negativity and keep it at bay. They should have the ability to leverage media and increase coverage that is accurate and aligned with messaging. They should also be able to demonstrate how they have prevented an issue or managed it well before it became a crisis. Redbrick Communications I Communications Division: Service Delivery Review �epor4'IVrunicipality of Clarington 29 Analysis Based on the research, Redbrick has conducted a Strengths, Weaknesses, Opportunities, Challenges analysis. This analysis informs the recommendations in this report. - VIII 7A - , 1 WIN-1 • Dedicated team of communicators, some with design backgrounds Departments work in silos. There's a lack of shared knowledge and and communications expertise who care about their role at the clear understanding about the role of communications. municipality. • Despite limited resources, the puts out a high quantity and variety of Some departments feel it would be beneficial to have a person in their communications materials. They want to be innovative, creative, and own department who have permission to post to social media, for publish high -quality work. example, but they feel there is a lack of trust in being able to do that. • The CAO and council see the value of communications and support Departments do not consistently involve communications early the enhancement of the department. enough in projects. Communications/design is sometimes rushed and/or ends up not being as timely as it could be. • Staff in other departments want to work with communications Processes to engage communications are not clear. Not all to share the news and accomplishments from their respective departments use the same approach to connect with the departments. communications team. Some use the form, others call, others walk into the office. • Strategic Planning process has identified stronger communications Branding isn't always consistent and could be stronger and public engagement as high priorities and key themes. • Opportunity to build a stronger two-way connection between Stronger processes and policies are needed to set clearer expectations, communications and customer service staff to improve the pulse on common understanding of timelines and stronger collaboration and the community, flag issues early, identify areas where the community communications amongst the communications team itself and with needs more information departments • Current communications efforts are not tied to annual business plans. Annual planning calendars and regular meetings with departments would make communications more strategic and aligned corporately • Day-to-day operational work is the main focus of the team. There are missed opportunities to tell more strategic and meaningful corporate stories Redbrick Communications I Communications Division: Service Delivery Review Re�or4Y\/runicipality of Clarington 30 OPPORTUNITIES • Meetings with each department head to develop a communications Both internally and externally, it's felt the website is not effective nor calendar, whether it be monthly, bi-monthly, annually, etc. will help easily navigable. Currently no internal resources to do a full evaluation with flow of timely messaging, and allow the department to plan and revamp of the website. ahead. • Regular reporting to council will help demonstrate the value for Population growth is happening quickly, putting a lot of demand investments in communications and help the community understand and increased pressure on communications staff. There's a risk of staff the effort taken to reach various audiences burnout with no additional resources, or the inability to meet growing resident needs. • Public is generally engaged and if consulted, would provide data to Current practices do not consistently include measurement and inform communications priorities and level of current success evaluation of success, missing opportunities for lessons learned and continuous improvement. • Staff in other departments want to work with communications Processes to engage communications are not clear. Not all to share the news and accomplishments from their respective departments use the same approach to connect with the departments. communications team. Some use the form, others call, others walk into the office. • Can capitalize on social media as an effective communications tool. A mixed demographic demands broader communications efforts. A Opportunity to expand into video eventually. mix of print and digital. There's a feeling that the older population isn't on social media. There is currently limited data to determine the most effective approach to reach audiences. • Can share stories and humanize staff as"neighbours"doing good Fast growing community means that Clarington needs to be proactive everyday work in the community. Similarly, the municipality has many in telling the story of well managed growth and development. positive stories to share achievements and progress and value for taxpayers' dollars. • Great relationship with local media. Content is clean, photos are Current processes are limited for proactive issues management. As high quality. Opportunity to leverage further and have more content community demands and engagement increase, as will the need for published. stronger issues management processes. • Trust in local government has decreased since the pandemic. The Municipality will need to strengthen its visibility and proactive communications to build greater trust over time. Redbrick Communications I Communications Division: Service Delivery Review Reae 4 rt: V1unicipality of Clarington 31 Recommendations Based on our research, best practices, sector knowledge and key findings, the Municipality of Clarington has a number of factors to consider when planning to enhance the communications function going forward. Redbrick recommends the following seven priorities and associated actions. Recommendations are rated using the following scale of priority: High = next 6 months to 1 year Medium = next 1 to 2 years Low = 2 to 3 years Best Practice Areas of Improvement Each recommendation and action below aligns with the municipal communications best practices identified earlier in this report. r- -=Epp, INE111111111111 1.Trusted 2. Aligned strategic with corporate advisor strategic plans 6. Data and measurement for listening and proven outcomes 5. Effective tools/room for innovation 3. Supported by strong internal processes 4. Consistent corporate story/ brand (Customer Carviral 1 Trusted strategic advisor 2 Aligned with corporate plans 3 Supported by internal processes 4 Consistent corporate story/brand 5 Effective tools /room for innovation 6 Data and Measurement for proven outcomes Redbrick Communications I Communications Division: Service Delivery ReviewR-(�or4Vunicipality of Clarington 32 Priority #1: Strengthen the communications team structure Description/high level current state: Clarington is currently supported by four communications staff, under the manager of strategic initiatives. For the size of the municipality, Clarington's staff complement is smaller than that of like -sized municipalities. It is currently under-resourced and becoming overwhelmed. Roles and responsibilities are unclear, with missed opportunities to provide greater strategic value to the organization, including effective and proactive issues management response, and to keep up with social media and other technological trends. Following the table below is a proposed communications team structure for the Municipality of Clarington. Risks • Weakened Municipal brand and reputation • Missed opportunities to respond quickly and effectively to merging issues • Lack of clarity surrounding roles and responsibilities leaves gaps that allow misunderstandings, inefficiencies and an increased risk of staff error and oversights • Consistent reactive approach • Not meeting legislative requirements. Legislation impacting municipalities continues to evolve, communications staff must ensure that the Municipality meets several requirements under the Accessibility for Ontarians with Disabilities Act, 2005 (AODA) including creating and providing information in accessible formats and meeting website accessibility standards. Other Ontario municipalities have received fines as the result of a complaint filed about communications activities related to the Act, specifically website accessibility Staff burnout as demands continue to increase leading to lowered staff morale as well as increased risk of staff turnover and the associated Human Resources costs • Inability to keep up with changing technology, trends and updated channel algorithms leading to a failure to implement the best practice standards of comparable municipalities Benefits • Greater alignment with corporate priorities and a more strategic approach • Increased ability for proactive communications and connection with departments • More capacity for consistent coverage and backfilling • Broader reach and stronger community building • Strengthened customer service; consistency of information to the public; early issues mitigation • Improved capacity to respond in the event of an emergency or crisis impacting the municipality. • A senior communications practitioner will provide the skills and leadership experience necessary to fulfil the legislated role of Public Information Officer under The Emergency Management and Civil Protection Act and provide strategic communications leadership to the Municipality's emergency response team. Redbrick Communications I Communications Division: Service Delivery Revie pRg ort:Wrunicipality of Clarington 33 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Add greater capacity to the Other like -sized municipalities have greater Council/CAO H 1,2,3 communications team and communications FTE complements. Refer to chart on enhance the Municipality's page 24 of the report. approach to public engagement through the creation of two The Municipality is missing a senior practitioner to work net -new positions and the re- closely with departments, work on high -profile and alignment of existing Manager sensitive initiatives and provide guidance for public position: engagement, to strengthen the Municipality's ability to • A senior practitioner in the anticipate issues, get out in front of them with strategic role of Communications positioning, and provide oversight to the leadership and and Public Engagement others. Supervisor • A Communications and Public This person can also be the starting point to provide Engagement Officer greater oversight to and enhance the Municipality's • A Digital Communications public engagement efforts. Coordinator (discussed below) In other municipalities, Communications Officers (or Advisors) work closely with departments, develop strategy, positioning and key messaging. They are strong writers and create plans to meet department goals and objectives. In Clarington, there is a need to elevate this function and add more capacity to meet departmental needs. The proposed organizational chart also includes a second position that could be considered in the future. Redbrick Communications I Communications Division: Service Delivery ReviewIRA or4'IVlunicipality of Clarington 34 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Realign the structure in the To reach audiences, content needs to be timely, visual CAO/Manager H 1,2,3 following ways: and engaging. Departments rely on this content to of Strategic • Differentiate strategic help share their messages and information. Research Initiatives communications roles and shows demands for this content in increasing across tactical roles, yet ensure every organization. Graphic designers and digital collaboration media specialists play a significant role. A Supervisor • Create a Creative Services of Creative Services will be able to capture incoming Supervisor role for stronger requests and see them through to completion ensuring project management, quality all timelines and quality standards are met. assurance Communications plays a leading role in protecting the reputation of the Municipality and demonstrating value for taxpayers'dollars. Clear, professional, timely communications help get you there. Strategic communicators develop strategies, manage projects, and confidently lead municipalities through the communications process from concept and positioning to evaluating results and reporting back to Council. Graphic designers and digital coordinators bring them to life. These areas must be highly connected and collaborative to be effective and deliver the highest value. • Note: Based on best practice and the intended role of communications staff in issues management, communications staff are ideally not part of the union given the need for and importance of them having access to confidential information especially for issues management, such as union negotiations or labour strikes. Redbrick Communications I Communications Division: Service Delivery Review IVrunicipality of Clarington 35 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Increase the team's capacity for To become a more modern organization, digital and Manager H 4,5,6 digital media and data analysis visual storytelling is more important than ever. Being of Strategic - hire a Digital Communications able to create engaging content, appropriate for the Initiatives Coordinator. channels used, and understand and interpret analytics and data are critical. Websites are a central information source, as is social media. On these channels, algorithms are regularly updated. Adding additional digital capacity is critical to keep up with trends, tools and best practices and inform best use of these channels and meet AODA standards. The Municipality needs additional capacity in this area. Enhance the Municipality's ability Across the board, municipalities are investing in digital Manager L 4,5 to create video and multi -media communications expertise on their teams to keep of Strategic content. Clarington can either: up with trends and meet community expectations. Initiatives • hire for an in-house resource Statistics clearly show that video content is more • budget to engage third engaging, highly shared and easily remembered. parties as needed Municipalities are adding greater capacity in this area. As Clarington thinks about the future of the team, adding more capacity for video creation will be important. Redbrick Communications I Communications Division: Service Delivery Review �epor4Y\/runicipality of Clarington 36 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Strengthen the link between Many municipalities now have communications and CAO, Manager M 1,3,4 Communications and Customer customer service under the same director. Their work of Strategic Service: consider having these aligns as both areas support the other, both have a Initiatives two areas in the same division - or pulse on the community and both provide information creating a dotted line reporting to the public. to ensure regular collaboration. Communications advisors create the key messages customer service staff need to deliver to the public in order to ensure a high standard of customer service, accuracy and efficiency. Customer Service staff track public complaints, compliments and feedback and Communications Advisors rely on this information to inform communications strategies that will be effective for the municipality. Customer Service staff are often the first to become aware of a shift in public opinion on specific Municipal programs or services. This information helps communicators and departments identify opportunities to enhance public consultation and strengthen public education. Redbrick Communications I Communications Division: Service Delivery Revie PIRAP I(OFunicipality of Clarington 37 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Establish regular connections These areas are outward facing and engage audiences. Manager H 1,2,3 between the Mayor's office and To ensure consistency across the organization, these of Strategic Economic Development. areas must work collaboratively with communications Initiatives, on a regular basis. Mayor, Director of Staff in the Mayor's office are often the first to Planning and become aware of political issues emerging within Development the community. As such, an effective and efficient relationship is needed to ensure the Mayor and Council are properly briefed and provided with staff communications support as/when needed. Mayor's office staff can act as a go between to report Council's questions/concerns about ongoing communications work to streamline processes and eliminate duplication of effort by the Mayor and individual Councillors. While economic development operates with its own dedicated communication/marketing resource, their work directly impacts the tax base. Messaging should be consistent, aligned, and complimentary to ensure both communications and economic development are working as efficiently as possible to attract new residents, visitors, investors and businesses to the area. Redbrick Communications I Communications Division: Service Delivery Revie wRefor� IVllunicipality of Clarington Proposed communications team structure Strong Stron Redbrick Communications I Communications Division: Service Delivery ReviewRe-P-P. unicipality of Clarington 39 Priority #2: Strengthen Clarington's issues / risk management approach Description/high level current state: During the internal interviews, a common theme was related to the need for stronger issues management processes and more proactive responses. Issues and risk are related. When issues are not well managed, there is greater risk to the organization: its reputation, trust from the community, and there can be possible legal ramifications. When we train, we say "issues management starts today.' The more a municipality can build community champions, proactively prepare responses, keep Council informed, increase trust through positive action, and build stronger relationships, the easier it is to manage issues when they arise. Issues and risks such as cyber attacks, more severe weather events, discussing sensitive topics like housing and homelessness, are all examples of common issues that have been increasing in frequency, complexity and in some cases, severity, over the past few years. Municipalities need to be prepared to respond and be setting a proactive foundation for these conversations. In the event that a municipal emergency response is needed, the Municipality of Clarington will need a senior communications professional with the specific skillset required to lead the organization through difficult times at a moment's notice. This position needs the flexibility to work hours outside of typical union contracts and must have the authority to access confidential documents as the emergency response strategy may require. Risks • Reduced trust and diminished reputation • Possible legal liability • Fueled anger on social media • Increased staff time required to manage complaints and customer service inquiries • More demand on elected officials to manage public complaints and inquiries • If staff don't feel they are being appropriately protected and supported by management when issues occur, the municipality risks increased union complaints, staff burnout and staff turnover, along with reduced job satisfaction, productivity and loss of trust • Inability to appropriately monitor, evaluate and prepare to proactively respond to issues with current staff compliment Benefits • Mitigated legal liability • Fewer complaints • Reduced staff time spent responding to public inquiries • Saves time and money by preventing issues from becoming crises • Enhances ability to provide effective crisis management • Greater public satisfaction with the work of staff and elected officials Sample risk factors for consideration Internal Risk Factors New personnel External Risk Factors Economic environment Change in management responsibilities Change in legislation or regulations New programs and/or systems Change in technologies Changes in controls Community and resident needs or expectations Redbrick Communications I Communications Division: Service Delivery Review lReorRunicipality of Clarington 40 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Ensure roles, responsibilities, approach, An issues briefing note for Council is a proven Communica- H 1,3,4 standards and processes are clearly defined tool to build greater trust between Council tions and and Council is well informed. and staff, share key messaging and help with departments consistency, and demonstrate there is a plan Continue to rollout and use the established in place and action being taken to address Council issues briefing note template the issue. to all departments to ensure it is used consistently. Develop a phased issues management Most issues are known or can be anticipated. Communica- M 1,2,3,4 strategy (building on the draft currently When they are identified early or ahead tions and being created) following a 3-step process of time, processes and messaging can be departments for improving issues and risk mitigation in place to help with quick response and from a communications lens: confidence across the organization. 1. Identify top issues and concerns Clarington's residents have or the Municipality has faced. These can include regular occurrences such as watermain breaks. 2. Assess their level of risk related to how likely they are to happen, and their consequences or impact on the organization or community. Redbrick Communications I Communications Division: Service Delivery Review�er 'IV14unicipality of Clarington 41 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement 3. Prepare to manage the risk. As a starting point, choose three for which to develop pre -approved related key messaging and materials based on the impact level (media releases, social media content, photos etc.). Keep in mind that one topic may have different impact levels. For example, if a watermain break is on a busy, main road, the impact and response will need to be greater than if on a side street. Over time, follow the same process and build on the issues covered. Include Customer Service staff as part of the As indicated above, collaboration between CAO H 2,3,4 issues management process. Customer Service and Communications can • Establish the expectation the help to identify issues early, mitigate them communications and customer service and ensure consistent messaging is shared if operate collaboratively as a team. they do occur. • Set up weekly meetings with communications to share call trends For some municipalities, the customer and potentially flag issues or find service division is being integrated as part opportunities to strengthen messaging of communications divisions. In some case, to mitigate issues. where relationships between managers are • When issues arise, share messaging with strong, this reorganization is not necessary. customer service staff as a matter of Regardless of the approach, ongoing course. collaboration is critical. Redbrick Communications I Communications Division: Service Delivery Review �erMunicipality of Clarington 42 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement If appropriate, reach out to moderators of The spread of misinformation on social media Communica- M 4,5 local social media groups and channels is a challenge for every municipality. Some, tions to identify opportunities to correct like the City of Kawartha Lakes, are finding misinformation and guide members of the some success in reaching out to local group public to Municipal facts. moderators in an effort to correct inaccurate information and set up processes to guide • Note, this requires some political acuity, the community to the facts. It will take time and sensitivity related to how open or to build trust, but it can be an important step closed the moderator may be to authentic forward with key and influential members of dialogue with government. the community. This section is included twice because of As indicated above, as Clarington plans for CAO, L 1,5 its potential for communications. Artificial the future, it cannot ignore that Al tools department Intelligence tools, like ChatGPT or are advancing rapidly. They are already heads, com- Microsoft CoPilot, can be used to support being adopted for customer service and munications communications and writing efficiency. will be used increasingly over time for However, they need to be used with caution communications and writing - and not only and cannot replace communications by communications staff. expertise and strategic thinking. While Al can assist in communications Clarington's leaders, with communications efficiency, it is important that municipalities at the table, should develop clear policies consider the risks. These tools are machines, and corporate expectations around their not humans. They miss nuance, tone and use. context. They can be used as a starting point, if desired, but caution and policies are needed to guide their use. Communications professionals must be at the table when these policies are being considered. Redbrick Communications I Communications Division: Service Delivery Revie PIRAP 'IV�'unicipality of Clarington 43 Priority #3: Invest in more purposeful public engagement Description/high level current state: As indicated, public engagement has become a significant area of focus for municipalities. Many are putting more investment in this area to meet increased expectations from their communities to have a voice in local decision making. Effective engagement takes resources and commitment, which can pay off in greater community trust, stronger decision making and strengthened connection with key stakeholders. Communications often support, and in some cases, lead public engagement. They can help promote opportunities, ensure participants are well informed and provide strategic advice and counsel on approach. At Clarington, currently public engagement is led by departments that may have mandates to engage, such as Planning, or ad hoc based on the impact of the initiative. A more proactive, strategic approach will ensure a more consistent and meaningful approach going forward. Risks • Reduced trust • Misunderstanding of the decision -making process • Greater community resistance • Not reaching key impacted audiences, or missing opportunities to engage with Indigenous or other equity seeking groups • Increased risk of FOI requests when residents feel the municipality is being dishonest, not disclosing important information or not listening to what the community wants • Increased staff and political time required to respond to questions and concerns, increased amount of Council meeting deputations and correspondence when people don't understand work that the municipality is undertaking, and how it impacts them Benefits • Greater trust • Exceeding legislative requirements • More community champions and strengthened relationships with key audiences • Better meeting the needs of equity seeking groups and ensuring they have a voice and do not feel ignored • Increased effectiveness and efficiency when there is a dedicated team with experience and expertise overseeing and advising on public engagement projects, as opposed to department staff leading projects on an ad hoc basis. • Improved decision making that takes into greater consideration, the community's input Redbrick Communications I Communications Division: Service Delivery Revie wOW0.9 unicipality of Clarington 44 Recommended actions Rationale / Leading Practice Responsiblity Priority Best Practice Level Area(s) of Improvement Clarify the organization's goals Different municipalities have taken different approaches Council, CAO H 1,2,4 and expectations related to in the development of their public engagement public engagement, as per the frameworks and toolkits. Clarington will need to clarify new strategic plan. their level of commitment and promise to the public when it comes to engagement. Examples: City of Burlington Community Engagement Charter, which is an agreement between Council and citizens. City of Kingston public engagement documents Build up public engagement IAP2 is recognized as the global gold standard for public Communica- H 1,2 expertise and skillsets across the engagement. Municipalities across the country have tions organization. Ensure at least one adopted their model as the foundation of their work. staff is trained and certified by Certified staff can be leveraged to help others across the the International Association of organization strategically plan, implement and close out Public Participation (IAP2). engagement initiatives to increase trust between local government and those they serve. Redbrick Communications I Communications Division: Service Delivery Revie wReforMunicipality of Clarington 45 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Identify populations that Municipalities must ensure they offer opportunities for CAO, H 1,2, are commonly missed in all members of their communities to be heard and have Department engagement initiatives. (This a voice. The Municipality should consider who may be heads, could include Indigenous or being missed during typical engagement exercises to communica- other equity seeking groups.) find out directly from representatives of these groups, tions Develop a strategy to engage how best to engage them in the future. This exercise them in how best they can be must be inclusive of non-native English speakers. reached and engaged in the future to strengthen their voice and ties with the Municipality. Build on the Municipality's Public Easy -to -use planning templates can help municipal staff Communica- H 3,5 Engagement Framework and strategically plan for public engagement. It ensures tions enhance the toolkit section to they will close the loop once engagement is complete, assist in easier planning and which is the most common gap in achieving meaningful implementation. engagement. Clarington's current framework is a good start. It can be enhanced following some of the examples above (e.g., Kingston). Redbrick Communications I Communications Division: Service Delivery Revie PIRAPP.'IVI'unicipality of Clarington 46 Priority #4: Increase positive storytelling, the ability to communicate quickly and share timely factual information Description/high level current state: Audiences are inundated with content. Speed trumps accuracy, and while municipalities approve text, audiences are consuming and creating their own content. At the same time, the media landscape has changed, with fewer newspapers and reporters. Attention spans have decreased. It's important that municipalities become their own newsrooms, tell their own story and have processes that ensure they can communicate quickly. Risks • Reduced trust • Missed opportunities to share Municipal achievements • Spread of misinformation and greater difficulty to correct it • Social media users expect a more immediate response than traditional forms of interaction, delayed response time can be perceived as poor customer service Benefits • Increased understanding of the value for taxpayers' dollars • Ability to share factual information • More engaging and timely content - more engagement on social media • Improved rates of public satisfaction and community engagement with the municipality • Positive community stories promote community pride and social involvement • Opportunity to share positive municipal stories and project wins that traditional media may not share • When you identify the information that is most important to your audience, present it in an engaging way, and in a timely manner, you ensure that it will be useful to the community you serve and shared more broadly with others Redbrick Communications I Communications Division: Service Delivery Revie pR orNPunicipality of Clarington 47 Recommended actions Rationale / Leading Practice Responsiblity Priority Best Practice Level Area(s) of Improvement Leverage the new strategic Strategic plans define mission, visions and values. These Communica- M 1,2,4 plan to develop consistent foundational organizational pieces can be used to tions corporate messages to be used in develop the corporate story that becomes embedded in communications materials. communications materials, speeches etc. as appropriate. Clarington's coming new strategic plan is an opportunity to leverage the work and feedback from the community to root a stronger, consistent Municipal story. Leverage regular meetings with Consistent feedback from staff is that the community Communica- M 2,4 departments to mine good news does not see all the good work the Municipality delivers tions, stories and content. Identify key every day. Regular connections with departments and department staff, and support them in how to setting up staff to take quality photos will help tell these staff take quality photos. stories more consistently. Develop a social media strategy Social media is an important tool to engage audiences, Communica- M 3,5 to ensure the purposeful including the media, and to manage issues. The tions use of these channels, target Municipality should take a step back to review their audiences and clarify roles and current use of social media, and develop a strategy to responsibilities. enhance their approach and consider which tools will bring the greatest value. Respondents to the public survey indicated that they are on Facebook, but more than half do not follow the Municipality. Staff also indicated that youth are a key audience being missed. There are opportunities to improve content based on each channel's strength. If a new digital media person is added to the team, they can support this work. Redbrick Communications I Communications Division: Service Delivery Revie PRAP Municipality of Clarington 48 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Once a strategy is established, As above, respondents to the public survey indicated Communica- M 4,5,6 increase promotion of the that they are on Facebook, but more than half do not tions Municipality's channels. follow the Municipality. More awareness is needed as to where the Municipality is active. Create and continue to build up Municipalities need to tell their local story. This includes Communica- M 4,5 a photo library with local photos visually. As part of the Municipality's efforts to create tions, possible during all seasons, staff at work, more authentic content, continually building on department municipal facilities and assets, Clarington's library of local photos will help create staff fleets (such as snowplows). This stronger content and demonstrate how the Municipality can include: is connected with its community. • Allotting time to communications staff to take local shots on a regular basis • Hiring a photographer two to three times a year • Offer photo contests for members of the community to share local photos • Training identified staff who work in the field on how to take a good picture • Reaching out to local service groups and organizations for event and community photos. Redbrick Communications I Communications Division: Service Delivery Revie pRAPONunicipality of Clarington 49 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Humanize staff where possible: There is a growing trend in municipalities to create more Communica- L 2,4,5 • Take photos or simple video "human" content, showcase their staff and have a more tions, of staff in action in the authentic and approachable voice. department community to share on social staff media This can be done simply, by taking photos of a staff • Build opportunities as part of person putting up a new stop sign for road safety for communications plans example, or it can be more in depth by taking video and • Consider identifying three having different staff as spokespeople - with guidance or four staff to profile on from communications. social media and share the Municipal story These stories also help establish a positive culture • Look for opportunities to where staff effort and contributions are celebrated and share "behind -the -scenes" recognized. stories and footage: e.g., host a "Touch a Truck" event or Examples: show firefighters in training. The City of Cambridge shared photos and video of one of their custodial staff to talk about the work he does every day to keep facilities maintained and in good working order. • The City of Kingston uses their Public Works manager for a regular feature called PW this Week. He shows where construction is taking place, why and what roads to avoid. • The Township of Lake of Bays featured their Director Finance in a humorous Twitter video reading a long list of all the infrastructure and assets the municipality is responsible for, to highlight the importance and value of good asset management practices. Redbrick Communications I Communications Division: Service Delivery Revie pRA orMunicipality of Clarington 50 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Create a video strategy for the As indicated above, video content is more engaging Communica- L 2,4,5 Municipality taking a phased and attracts more viewers. It is by far more highly tions approach to build up more video shared with others. The Municipality should take a more content over time and increase strategic approach to video and look for opportunities the community's awareness of over the coming years to develop more video content. how the municipality is delivering It should be a mix of informal video and more value: professional. • Ideas: Base them on top questions or concerns, identity one to two topics for which to develop a video as a starting point and build from there. Redbrick Communications I Communications Division: Service Delivery Reviewffeor M4 unicipality of Clarington 51 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Investigate and put guidelines As Clarington plans for the future, it cannot ignore Communica- L 1,5 in place for the use of ChatGPT, that Al tools are advancing rapidly. They will be used tions Microsoft CoPilot, or other increasingly over time to create content and automate artificial intelligence tools responses to public inquiries and draft content. Their to support communications level of sophistication is still evolving. Some tools better efficiency. However, they need than others. It is an area that is changing rapidly. to be used with caution and intentionally with appropriate Some communications professionals and other staff policies in place. are starting to use ChatGPT and other tools to generate ideas, create early drafts or consider approaches for Also discussed in the Issues graphics and photos. Management section below. While Al can assist in communications and writing efficiency, it is important that municipalities consider the risks. These tools are machines, not humans. They miss nuance, tone and context. They can be used as a starting point, if desired, but caution and policies are needed to guide their use. Communications professionals must be at the table when these policies are being considered. Redbrick Communications I Communications Division: Service Delivery Revie PIRA orNMunicipality of Clarington 52 Priority #5: Establish a stronger communications mindset across the organization Description/high level current state: High -functioning communications teams are at leadership tables, are brought in early to projects, have processes and policies that are well understood across the organization, and use tools to help them track, monitor and report on communications activities and priorities. The Municipality of Clarington has been putting effort into improving communications practices and clarifying roles and expectations. This work can be further enhanced so communications is kept top of mind across all departments. Risks Benefits • Frustrated community because communications are reactive, not Greater trust in the Municipality - higher perception it is well timely nor strategic managed • More complaints and issues to manage creating increased Strengthened risk management across the organization demands on staff, and further frustrating community members as Stronger messaging with more time for strategic positioning and response time are impacted anticipating reaction or questions • Greater risk for misinformation and additional staff time Greater reach because audiences are thought through up front, and Mayor/Councillor time required to address and correct and enough time is allotted to leverage and create the tactics misinformation • Departments not engaging communications and doing their own leading to inconsistencies and inefficient use of staff resources across the organization that will reach target groups • Improved collaboration, reporting and information sharing between municipal departments, communicators and elected officials • Allows the municipality to provide enhanced value to taxpayers by streamlining communications processes and ensuring the right staff, with the right skillset, are involved in communications projects at the right time Redbrick Communications I Communications Division: Service Delivery Revie wRef oP. Municipality of Clarington 53 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Once the Communication Educating staff across the organization about the role Communica- M 1,3,4 and Public Engagement of communications, expectations for engagement, tions, Supervisor is in place, roll out a and processes is the first step in building a stronger Supervisor, "communications road show"and communications mindset. departments increase the visibility of the team and expectations. Once the supervisor is in place, that person should become visible across all departments, start building relationships and setting the tone and expectations for how communications and departments will work together strategically and collaboratively. Implement strategic Many teams follow project management approaches. Communica- H 1,2,3 communications practices across Communications should be embedded into these tions the organization, build into existing processes. For example: Supervisor/ existing project management Communications is identified as a representative on Officer, processes where appropriate. the project team departments • A communications lead participates in kick-off meetings and processes • Communications and engagement plans are developed and part of the scope for all projects • Success measures, risk assessment plans, stakeholder matrixes all include communications input • Communications regularly monitors public/audience reaction and reports back to the project team to make any needed adjustments • Project close out reports include communications analytics, lessons learned and successes Redbrick Communications I Communications Division: Service Delivery ReviewPIRAPP.Vunicipality of Clarington 54 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Build off the Creative Services Clear guidelines, tools and standards help departments Communica- H 2,3,4,5 Catalogue and MatrixToolkit and communications to work together more efficiently. tions, currently under development A toolkit that lays out these expectations helps to ensure it details the role of give clarity and establish a consistent approach to communications, how they are communications planning and implementation. to be engaged and includes a communications brief/checklist for all projects, common tactics and their associated timelines, close out reports. At the beginning of each year High -functioning communications teams have Manager H 2,3,6 or after the budget has been established processes for departments and of Strategic passed, establish meetings communications to connect regularly. Once the budget Initiatives, between communications and is passed, departments tend to develop their annual Department each department to discuss business workplans. This is an important opportunity heads and map out needs for the year to engage communications and start to map out the ahead. year ahead and working collaboratively to set early expectations of where communications may be needed, how they may be involved and what resources may be needed. It's the first step in taking a more proactive approach. Once in agreement, projects can be mapped out and tracked in Monday.com. Redbrick Communications I Communications Division: Service Delivery Revie pRg orMunicipality of Clarington 55 Recommended actions Rationale / Leading Practice Responsiblity Priority Best Practice Level Area(s) of Improvement When the Communications As above, regular, established meetings with Communica- H 1,2,3 Supervisor and Officer roles are departments are critical to create a communications tions, in place, establish bi-weekly mindset and ensure communications is kept top department or monthly meetings with of mind. Departments with high communications managers department leads for planning needs should be meeting more frequently with and collaboration. communications to stay on top of needs. Establish and approve a schedule Before and since the pandemic, Days of Recognition CAO, Manager H/M 2,4 of regular Days of Recognition have become important to build community and for of Strategic calendar (e.g., National Day for municipalities to demonstrate all are welcome. Often, Initiatives, Truth and Reconciliation, Pride deciding which days to recognize is challenging. Department Month). Having intentional discussions around these days is heads important to help communications staff be proactive and prepared. Develop a 15-month Much municipal work is cyclical and can been Manager of M 1,2,3,5 communications and social anticipated and scheduled well in advance. 15-month Strategic media planning calendars that calendars ensure communications is planning ahead, Initiatives map out seasonal and annual has the resources needed and is always thinking a year occurrences (e.g., winter road in advance to continually improve content. (e.g., in year maintenance, festivals), and one, they may not have strong photos of snowplows. upcoming projects. They can take those pictures that year to use in future years.) Redbrick Communications I Communications Division: Service Delivery Revie PIRA orN Municipality of Clarington 56 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Better leverage Monday.com Monday.com can be used as a powerful tool to manage Manager H 3,5,6 for project initiation, tracking, communications efforts. The risk is that the tool is of Strategic resource management, priority too tactical in nature. It is important to differentiate Initiatives, setting, collaboration with between tactical needs, such as webpage updates, with communica- departments. strategic needs, such as the launch of a new initiative tions • Establish the communications that requires a proper communications plan. form (which links to Monday) as the way to engage and The team can leverage'boards'for larger projects or initiate projects, not just for department planning, assigning annual campaigns, tactical requests. Days of Recognition etc. • Review the form to ensure all necessary information The data and information from Monday.com can also is captured and leverage support conversations with department heads about the information to guide setting project priorities and reporting back to Council conversations and approach on communications achievements and workload. with communications and departments. • Provide regular reports to leaders and Council. Redbrick Communications I Communications Division: Service Delivery Revie wRefor�`IViunicipality of Clarington 57 Priority #6: Place more focus on internal communications across the corporation Description/high level current state: Staff are the Municipality's strongest ambassadors and communicators. They have pride in what they do and when valued, the Municipality benefits. Many staff also engage with members of the community every day, and when informed and engaged, they can broaden the Municipality's reach with factual information and build stronger connections with the community. At Clarington, internal communications has lacked focus and priority. While there is an intranet called The Hub, posting content to the site is not consistent. It is unclear who provides oversight for internal communications and what the expectations are across departments. Currently staff receive more information informally and is largely dependent on the ability of their manager or supervisor to share updates. More tools are available to support internal communications and reach all staff. The expectations of different generations also play a role and should be taken into consideration. (Refer to chart.) Risks • Low staff morale • Reduced retention • Increased risk of miscommunication due to informal "broken telephone" style information sharing between staff • When internal communication is not clear and consistent it leaves room for rumours and speculation to fill the gaps • Missed opportunities to leverage staff as important ambassadors for the Municipality • Tension between union and non -union staff can develop through inconsistent internal communication processes • Reduced ability for staff to embrace big picture thinking when departments work in silos and fail to communicate effectively • Cross -departmental projects are more difficult to manage and less efficient when departments do not have an established working relationship built on trust and productive internal communications Benefits • Increased sensed of staff belonging and value • Increased staff job satisfaction, leading to less staff turnover and the associated recruitment and training costs • Staff feel safe to share ideas for continuous improvement and become more engaged in their work • Increased productivity • Increased capacity and effectiveness of cross -departmental teams • Increased organizational knowledge and improved attendance at internal staff events when staff engage with corporate communications materials From the City of Dryden's 2020 Service Delivery Review report by Blackline Consulting (page 32) Traditional Baby Boomer Generation x Millennial Generation Z W E 'ICI'''' NINO 0 Phone Calls Phone Calls voicemail Instant Message FaceTime ® W up 09 M Letters Fare -to -Face TEEd Tend Text Personal Notes Email Email Email Face -to -Face Redbrick Communications I Communications Division: Service Delivery Revie wRefor33A1unicipality of Clarington 58 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Create an Internal Effective and meaningful internal communications takes Communi- M 2,3,4 Communications and commitment, resourcing and action. Municipalities that cations, and Engagement Working Group put focused effort on internal communications and HR - strategy with representatives from building a positive culture benefit in many ways, from approved by all departments to develop improved productivity, higher morale, greater retention senior an internal communications and more. leadership strategy. The best way to develop an internal strategy is to The strategy should detail: better understand staff needs and to have it driven by • Goals and objectives staff. They can brainstorm opportunities to enhance • Measurements of success internal communications and engagement, including • Clear roles and approaches, tools, ideas for improved recognition, responsibilities, recognizing regular touchpoints, networking opportunities, etc. staff across all departments have accountability Leadership support is critical to success. Leaders are role • Strategies and tactics to models, set the tone and establish priority. All leaders reach and recognize all staff must buy in to the strategy and support its rollout for it - regardless of workplace to be effective and successful. location, full/part-time or volunteer etc. Communications and HR can co-chair this group. Example: The Town of Newmarket has long emphasized the importance of internal communication and engagement. It is built into their values and it is part of building trust across the organization. Staff are engaged to inform, drive and participate in the internal strategy. Sample tactics include a staff newsletter created by staff "reporters , coffee with the CAO, staff appreciation days and much more. As the communications director says, there is a"continuous sprinkling"of internal touchpoints and a commitment to leader visibility, strong recognition practices, and listening to employees. Redbrick Communications I Communications Division: Service Delivery Revie PIRAP .qunicipality of Clarington 59 Recommended actions Rationale / Leading Practice Responsiblity Priority Best Practice Level Area(s) of Improvement Develop an internal Putting a policy in place emphasizes the importance Communica- M 2 communications policy based of internal communications and expectations for staff tions, and HR on the strategy. It should include across the organization. how The Hub is used, ability to use other tools like Yammer or Microsoft Teams, recognition etc. Develop and send a weekly Based on survey results, all -staff emails have been an CAO, with M 2,4 update email from the CAO. effective tool to share information. A brief, weekly email support from from the CAO can provide timely information and keep communica- It can be piloted to start and staff up to date with latest news from the Municipality. tions then after a 6 to 8-month period It also helps the leader be more visible across the reviewed for effectiveness. organization and role model the importance of internal communications. Example: the City of Kawartha Lakes sends a Friday Update to all staff. It is backed by a Management Directive that all leaders ensure their teams have seen the email week to week - in some cases they are expected to print and share it with their teams. Develop a staff recognition Staff recognition is a critical part of building positive Leadership, M strategy that aligns with the staff morale and staff feeling valued. Recognition should HR, internal internal communications take many forms, from formal long-term service awards, staff represen- strategy. to informal, day-to-day thank yous. tatives As Clarington look to enhance its internal communications, intentional thought recognition should be considered and included in plans. Redbrick Communications I Communications Division: Service Delivery Revie PIRAPP.�Qunicipality of Clarington 60 Priority #7: Enhance Clarington's brand consistency Description/high level current state: An organization's brand tells you what it does and what it stands for. Each element of the brand contributes to the overall impression others have. As a part of the brand, the logo is important to conveying the professionalism and personality of the organization. Other key components of the brand include its voice, messaging and visuals. Each and every interaction the municipality has impacts its overall brand reputation. The level of professional alignment and efficiency of operating procedures between communications and customer service staff will play a critical role in determining the brand's success or failure. A good brand will positively contribute to the municipality's local economy, while a weak brand runs the risk of having a long-term negative impact on your local economy. The role of communications is to protect and promote the municipal brand. Staff from both communications and other individual departments report there are opportunities to strengthen Clarington's brand identity and ensure it is used consistently across the organization. The Municipality uses a wide variety of mediums to communicate. It is important to ensure the organization's voice is consistent with organizational values, while leaving enough flexibility for communicators to choose a level of formality that is appropriate for the communications medium being used. For example, the voice used on social media post should be less formal than the voice used for a tax insert or notice of a parking fine. Risks Benefits • Weakened Municipal reputation and professionalism from Strengthened public recognition of Municipal collateral materials incorrect use of the Municipality's logo or inconsistent voice and use of visuals • If too formal a voice on social media, a risk of missing key audiences such as youth, or content not being shared • Reduced program participation and by-law compliance if key messages are not delivered in an effective, consistent and professional manner • Failure meet AODA requirements • Failure to provide clear, accurate and timely information to the public • Public confusion and lack of trust created by a perceived inconsistency and lack of transparency • Increased administrative expenses as a lack of consistency leads to additional staff time spent on non -value add activities, and inefficient processes and communications • Stronger, more consistent voice and tone in every interaction • Enhanced perception that the Municipality is well run • Increase reach and engagement on social media • Consistent processes and branding enhance and improve efficiencies during the onboarding and training process through times of staff turnover Redbrick Communications I Communications Division: Service Delivery Revie wRef oP3A4 nicipality of Clarington 61 Recommended actions Rationale / Leading Practice Responsiblity Priority Best Practice Level Area(s) of Improvement Establish the communications Both department staff and communications Manager of H 1,3,4 team as having authority over the reported they did not know who has authority over Strategic Municipality's brand. the Municipality's brand. This role should sit with Initiatives, communications. Departments should know to go to CAO communications to confirm materials adhere with logo and style guidelines. Invite communications to Presenting the brand guide to all departments ensures Department H 1,2,3,4 department meetings to talk there is broad awareness and recognition of the heads and about the brand guide and Municipality's brand and expectations of use. communica- expectations of staff and where tions materials can be found. Ensuring a central place to find the brand guide and any templates makes it easy for staff across the organization to access it and refer to it appropriately. Raise greater awareness of the The Municipality has established templates for common Communica- L 3,4,5 common templates that exist and materials such as presentation slides, letterhead, tions conduct an audit of their use of e-signatures etc. to ensure departments are following communications templates to the brand guidelines without communications needing identify what may be missing. to review all day-to-day materials. Based on feedback, it is unclear if these are being used consistently. More awareness may be needed as to where they can be found and how they should be used. Redbrick Communications I Communications Division: Service Delivery Revie pRg orN unicipality of Clarington 62 Recommended actions Rationale / Leading Practice Responsiblity Priority Level Best Practice Area(s) of Improvement Determine the Municipality's Engaging social media content is commonly less formal Manager of H 4,5,6 brand on social media - allow for and more"human" Municipalities that have increased Strategic some flexibility in tone of voice their followership or engagement statistics have often Initiatives, and content that is less formal done that through a more casual voice, that is less rigid CAO and more approachable. than in most written materials. It has also helped them reach audiences such as youth. The Municipality should determine what tone they are comfortable with on social media to increase how many people engage with them on these channels, and create a stronger perception of being approachable to their community. Redbrick Communications I Communications Division: Service Delivery Review Wunicipality of Clarington 63 Conclusion The Municipality of Clarington's current communications team is dedicated to providing good service and delivering quality content. At the same time, they recognize that demands are continuing to increase and more strategic skillsets are needed to strengthen the Municipality's ability for proactive issues management, more strategic and engaging approaches to sharing information, and being able to keep up with how audiences consume content online. Council and the CAO are committed to enhancing the effectiveness of the team and see it as a priority as the community grows and expectations increase. The new corporate strategic plan will set new priorities and actions for the organization. Communications should have a roll supporting the achievement of these priorities. At the departmental level, there are opportunities to strengthen relationships and collaboration and clarify processes and roles. There is an opportunity for the communications team to bring and demonstrate greater value across the organization and ensure they are seen and leveraged as trusted advisors and partners. This report emphasizes that everyone across the Municipality has a role to play to support and ensure effective communications. It starts with a clear vision for the team and a solid structure that ensures the right capacity and skillsets are in place. From there, establishing priorities, supporting processes and educating departmental teams will go a long way in elevating what the dedicated communications team can deliver and offer each department and the community as a whole for years to come. Thank you for the opportunity to work with you. Redbrick Communications I Communications Division: Service Delivery Revie wlOeforRunicipality of Clarington redbrick COMMUNICATIONS redbrick.ca Municipality of Clarington Joint Committee Meeting Resolution # Date: June 19, 2023 Moved By: Mayor Foster Seconded By: Whereas the Provincial Government recently announced changes to the structure of the Region of Peel; And whereas the Provincial Government is expected to appoint a facilitator to review the efficiency of each of the upper -tier regional governments, an exercise that is likely to include the Regional Municipality of Durham; Therefore, be it resolved that Clarington Council endorses the following joint statement to be issued on behalf of the Durham Regional Chair and the Mayors from all eight local area municipalities of Pickering, Ajax, Whitby, Oshawa, Clarington, Brock, Scugog and Uxbridge: "Being a community leader means working to make positive impacts on people's lives; overseeing high -quality programs and services that impact our cities and towns every single day. It's about driving economic opportunities that enhance the quality of life we all enjoy here in Durham Region. Here, there is no desire to separate. We are proud of our partnership; our close to 50 years of mutual respect. We focus on delivering a two-tier government model that is fiscally responsible. A model that delivers vital services across municipal borders, such as clean water, policing, paramedics and more. We have a Regional Triple A credit rating that benefits us all, regardless of municipal boundary. We have the largest geographic area in the Greater Toronto Area (2,500 square kilometres). However, with a region -wide population of about 743,000 residents, the current two-tier model is the best choice; providing fiscally responsible savings for our programs and services through economies of scale. Page 529 2 Just like all families, we've leaned on, learned from, and supported one another during some very difficult times. Locally, we have dealt with a global pandemic and significant damage from catastrophic weather events. We got through it together. Similar to our position in 2019, when the Regional Government Review was announced, we welcome opportunities to find efficiencies and look forward to learning about innovative approaches and how we can work better together. We understand that creating affordable housing units is essential. Growth must be managed effectively. Our core reason to stand together? Our residents. We work together to keep our communities safe, healthy, and growing." Page 530