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HomeMy WebLinkAbout2024-016If 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 2024-016 Being a by-law to authorize the Corporation of the Municipality of Clarington to invest its money and investments that it does not require immediately in the Prudent Investor Program of ONE Joint Investment Board (“ONE JIB”) pursuant to section 418.1 of the Municipal Act, 2001, to approve various documents, the entering into of specific agreements and the delegation of certain powers and duties. Whereas section 418.1 of the Municipal Act, 2001 (the “Act”) permits a municipality that meets certain requirements to invest money that it does not require immediately in any security in accordance with the Act and the related regulations in any securities provided that it exercises the care, skill, diligence and judgment that a prudent investor would exercise in making such an investment; Whereas section 418.1 of the Act provides that a municipality may, pursuant to subsection 418.1 (2) of the Act, pass a by-law to have section 418.1 apply to the municipality (the “Prudent Investor Enabling By-law”) provided that the municipality satisfies the prescribed requirements on the day the municipality passes the by-law and the Act further provides that subsection 418.1(2) will apply to the municipality as of the effective date set out in the by-law; And whereas paragraph 3 of section 15 of O. Reg. 438/97 (Part II) (the “Regulation”) requires that a municipality that intends to invest pursuant to section 418.1 of the Act through a Joint Investment Board that was established by other municipalities must have entered into an agreement with the Joint Investment Board and any other municipalities investing through the Joint Investment Board before it passes its Prudent Investor Enabling By-law; And whereas section 18 of the Regulation provides that the council of a municipality shall adopt and maintain an investment policy in relation to investing under section 418.1 of the Act, and section 25 of the Regulation provides that a municipality may enter into an agreement described in paragraph 3 of section 15 and may adopt an investment policy under section 18 of the Regulation before a municipality passes a Prudent Investor Enabling by-law; And whereas the treasurer of The Corporation of the Municipality of Clarington (the “Municipality”) completed a draft Municipal Client Questionnaire, in the form attached hereto as Schedule “A” (the “Municipal Client Questionnaire”) and prepared the draft investment policy statement attached hereto as Schedule “B”, which is referred to as its Investment Policy Statement (the “IPS”) and the Municipality intends to approve the completed draft Municipal Client Questionnaire and adopt the IPS, in accordance with section 18 of the Regulation; And whereas effective on May 19, 2020 The Corporation of the Town of Bracebridge, The Corporation of the Town of Huntsville, The Corporation of the Town of Innisfil, The Corporation of the City of Kenora, The District Municipality of Muskoka and The Corporation of the Town of Whitby (collectively the “Founding Municipalities”) established a Joint Investment Board pursuant to an Initial Formation Agreement as a joint municipal service board pursuant to section 202 of the Act (the “Initial Formation Agreement”), which Joint Investment Board is called ONE Joint Investment Board (“ONE JIB”) and all of the Founding Municipalities agreed under the Initial Formation Agreement to invest through ONE JIB; And whereas ONE JIB and the Founding Municipalities have entered into an agreement that provides that ONE JIB will invest under section 418.1 of the Act on behalf of the Founding Municipalities under that agreement (the “ONE JIB Agreement”) and that ONE JIB will also invest under that agreement on behalf of other Ontario municipalities from time to time (each such municipality, including each Founding Municipality is a “Participating Municipality”, collectively the “Participating Municipalities”) on the basis that: (i) before any new Participating Municipality passes its Prudent Investor Enabling By-law it will have entered into the ONE JIB Agreement with ONE JIB and with all of the other Participating Municipalities on the day such new Participating Municipality passes its Prudent Investor Enabling By-law; and (ii) ONE JIB has met the criteria set out in subsection 17 (3) of the Regulation, and will, in accordance with section 418.1 of the Act, the Regulation and the ONE JIB Agreement, invest on behalf of the Participating Municipalities; And whereas pursuant to the ONE JIB Agreement, all Participating Municipalities, consent to other municipalities entering into the ONE JIB Agreement from time to time so long as they comply with the applicable requirements and criteria under the Act and the Regulation; And whereas ONE JIB is subject to all applicable provisions of the Act, including having: (i) a code of conduct established by the councils of each of the municipalities for which it is a local board (ii) an Integrity Commissioner and Closed Meeting Investigator appointed by the councils of the municipalities for which it is a local board; and (iii) a records retention by-law that establishes retention periods during which the records of ONE JIB must be retained and preserved in accordance with the Act; And whereas it has been determined by ONE JIB that it would be prudent to have one code of conduct, one Integrity Commissioner and one Closed Meeting Investigator for ONE JIB, rather than one from each of the Founding Municipalities and one from each of the other municipalities that subsequently enter into the ONE JIB Agreement; And whereas each of the Founding Municipalities and Participating Municipalities that subsequently entered into the ONE JIB Agreement pursuant to an authorizing by-law that is substantially in the same form as this By-law (“Authorizing By-law”), established the code of conduct for ONE JIB that is attached to the ONE JIB Agreement as part of the Terms of Reference (the “Code of Conduct”) and authorized ONE JIB to make future changes to the Code of Conduct; And whereas after consultation with ONE Investment staff the Founding Municipalities directed ONE JIB’s agent, ONE Investment, to undertake a Request for Proposals (“RFP”) process to retain the services of both an Integrity Commissioner and a Closed Meeting Investigator for ONE JIB. After completion of the RFP process the recommended candidate was submitted to ONE JIB for its consideration and ONE JIB appointed the recommended candidate as its Integrity Commissioner and its Closed Meeting Investigator; And whereas each Founding Municipality, pursuant to an Authorizing By-law, delegated to ONE JIB the authority to appoint its initial Integrity Commissioner and its initial Closed Meeting Investigator and their respective successors, from time to time, in accordance with the process set out in the Terms of Reference which form part of the ONE JIB Agreement; And whereas a records retention by-law was passed by ONE JIB on February 28, 2024 (the “Records Retention By-law”) and at that time more than a majority of the Participating Municipalities in their capacity as “affected municipalities” as that term is used in sections 254 and 255 of the Act, approved the establishment of the retention periods during which the records of ONE JIB must be retained and preserved and all of the Participating Municipalities at that time delegated the necessary powers and duties in respect of the records of ONE JIB to the Secretary of ONE JIB in accordance with the Records Retention By-Law; And whereas the Municipality is required to have entered into the ONE JIB Agreement before the Municipality can pass its Prudent Investor Enabling By-law; And whereas after ONE JIB confirms its acceptance of the Municipality as a Participating Municipality under the ONE JIB Agreement and after the Municipality, ONE JIB and ONE Investment have signed the ONE JIB Agreement ONE JIB, through its agent ONE Investment, and the Municipality will agree upon on an effective date which date will be the effective date of the Municipality’s authorization of the application of section 418.1 of the Act to it, which effective date will also be known as the “Prudent Effective Date”; Now therefore the Council of the Municipality of Clarington enacts as follows: 1. The Municipality delegates the completion of the Municipal Client Questionnaire for and on behalf of the Municipality to the Treasurer. 2. The Municipality adopts the IPS and acknowledges and agrees that control and management of its money and investments that it does not require immediately will be given to ONE JIB pursuant to the ONE JIB Agreement as at the Prudent Effective Date described in section 8 of this By-law. 3. The Municipality authorizes the entering into of the ONE JIB Agreement after ONE JIB has accepted the Municipality as a Participating Municipality under the ONE JIB Agreement, substantially in the form attached hereto as Schedule “C”, pursuant to which ONE JIB will be given the control and management of the Municipality’s money and investments that it does not require immediately together with that of all of the other Participating Municipalities as at the day this By-law is passed with an effective date that is the Municipality’s Prudent Effective Date as described in section 8 of this By-law and the [head of council] and the treasurer are authorized to execute the ONE JIB Agreement for and on behalf of the Municipality. 4. Pursuant to the ONE JIB Agreement which the Municipality has authorized under this By-law, the Municipality agrees to the establishment of the Code of Conduct for ONE JIB as a local board of the Municipality on the basis that each municipality that invests through ONE JIB will similarly agree to the establishment of the Code of Conduct for ONE JIB in its capacity as a local board of that municipality and the Municipality hereby authorizes ONE JIB to make future changes to the Code of Conduct without further approval from the Municipality. 5. In accordance with the process for appointing an Integrity Commissioner and a Closed Meeting Investigator and their respective successors from time to time that is described in the Terms of Reference which form part of the ONE JIB Agreement the Municipality acknowledges that ONE JIB has appointed its initial Integrity Commissioner and its initial Closed Meeting Investigator and the Municipality approves such initial appointments by ONE JIB and the delegation to ONE JIB of the authority to appoint their respective successors from time to time. 6. The Municipality acknowledges that ONE JIB as a local board of the Municipality has established the retention periods during which it must retain and preserve its records in accordance with the Act and that more than a majority of the Participating Municipalities at the time approved or shortly thereafter approved the establishment of such retention periods and the Municipality approves of the retention periods set out in the Records Retention By-law and hereby delegates to the Secretary of ONE JIB the necessary powers and duties in respect of the records of ONE JIB as described in the Records Retention By-law. 7. The delegation to ONE JIB of the power to appoint the successors of the initial Integrity Commissioner and of the initial Closed Meeting Investigator and the delegation to the Secretary of ONE JIB of the aforesaid powers and duties in respect of the records of ONE JIB will not be revoked prior to the end of the term of the council of the Municipality that made such delegations. These delegations may be revoked at any time thereafter. These delegations remain in effect unless and until such revocation occurs. 8. The Municipality hereby authorizes the application of section 418.1 of the Act to it after the ONE JIB Agreement has been signed by the Municipality, ONE JIB and ONE Investment on the basis that the effective date of the ONE JIB Agreement vis à vis the Municipality as a Participating Municipality will be the date that is set out as the Prudent Effective Date in a Prudent Effective Date Agreement substantially in the form attached hereto as Schedule “D” and the treasurer of the Municipality is hereby authorized to execute such agreement on behalf of the Municipality. 9. Any one or more of the Mayor, the treasurer and the clerk are, for and on behalf of the Municipality, each hereby authorized to do all things and to execute all other documents, instruments and papers in the name of the Municipality necessary or desirable to give control and management of its money and investments that it does not require immediately to ONE JIB and to deliver all documents, instruments and papers as required and as authorized by this By-law and such execution shall be conclusive evidence that such documents, instruments and papers so executed are the documents, instruments and papers authorized by this By-law.