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HomeMy WebLinkAbout2024-06-03 General Government Committee Agenda Date:June 3, 2024 Time:9:30 a.m. Location:Council Chambers, 2nd Floor Municipal Administrative Centre 40 Temperance Street Bowmanville, Ontario Inquiries and Accommodations: For inquiries about this agenda, or to make arrangements for accessibility accommodations for persons attending, please contact: Lindsey Turcotte, Committee Coordinator, at 905-623-3379, ext. 2106 or by email at lturcotte@clarington.net. Alternate Format: If this information is required in an alternate format, please contact the Accessibility Coordinator, at 905-623-3379 ext. 2131. Audio/Video Record: The Municipality of Clarington makes an audio and/or video record of General Government Committee meetings. If you make a delegation or presentation at a General Government Committee meeting, the Municipality will be recording you and will make the recording public 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/archive 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. Pages 1.Call to Order 2.Land Acknowledgement Statement 3.Declaration of Interest 4.Announcements 5.Presentations/Delegations 5.1 Presentation by Cynthia Davis, President and CEO, and Cordelia Clarke Julien, Chair of the Board, Lakeridge Health, Regarding 2023/2024 Lakeridge Health Update 4 5.2 Presentation by Anthony Pezzetti, Deputy General Manager, Operations, Durham Region Transit, Regarding Durham Region Transit Service Update 6 5.3 Delegaton by Milton Dakin, President, Canadian Foresters Project (Eastern) Group, Regarding a Request to Reduce Municipal Taxes 8 5.4 Delegation by Larry Dickinson, Chair, The Durham County Senior Citizens Lodge, Regarding a Request to Reduce Municipal Taxes 10 6.Consent Agenda 6.1 PUB-010-24 - Rodenticide Use in Municipal Facilities - Update 12 6.2 LGS-021-24 - Appointment of a Closed Meeting Investigator 16 6.3 LGS-023-24 - Council-Staff Relations Policy – Update 22 6.4 LGS-026-24 - Delegation of Authority By-law 31 6.5 LGS-027-24 - Surplus Declaration of 238 King Street East, Bowmanville 87 6.6 FSD-026-24 - Maintenance Hole and Catch Basin Repair 90 6.7 FSD-027-24 - Financial Policies Update 94 6.8 FSD-028-24 - Northglen East Park Siteworks 142 General Government Committee Agenda June 3, 2024 Page 2 6.9 FSD-029-24 - Physician Recruitment 147 6.10 FSD-030-24 - 2024 Asset Management Plan Update 157 6.11 FSD-031-24 - Contract Administration and Construction Inspection Services for the High Street and O'Dell Street Reconstruction 340 6.12 FSD-032-24 - Amendment to Purchasing Bylaw – Reporting Threshold for Rosters 345 6.13 LGS-028-24 - Surplus Declaration of Unopened Road Allowance between Lots 22 and 23, Concession 4, Former Township of Clarke 349 7.Items for Separate Discussion 7.1 LGS-025-24 - Appointment to Clarington Heritage Committee and Newcastle Arena Board 352 (Attachment 1 Distributed Under Separate Cover) 8.Unfinished Business 9.New Business 10.Confidential Items 11.Adjournment General Government Committee Agenda June 3, 2024 Page 3 From:Turcotte, Lindsey To:Turcotte, Lindsey Subject:FW: New Delegation Request from Davis, Clarke Julien Date:Wednesday, May 29, 2024 1:12:47 PM Attachments:~WRD0567.jpg From: no-reply@clarington.net <no-reply@clarington.net> Sent: Friday, April 26, 2024 1:21 PM To: ClerksExternalEmail <clerks@clarington.net> Subject: New Delegation Request from Davis, Clarke Julien EXTERNAL A new delegation request has been submitted online. Below are the responses provided: Subject 2023/24 Lakeridge Health Update to Council Action requested of Council N/A Date of meeting 6/24/2024 Summarize your delegation We wish to make our annual update on Lakeridge Health, highlighting our achievements, milestones and growth opportunities with council. Have you been in contact with staff or a member of Council regarding your matter of interest? No Will you be attending this meeting in person or online? In person First name: 1.Cynthia 2.Cordelia Single/Last name 1.Davis 2.Clarke Julien How to pronounce your name: 1.Sin-thee-ah Day-vis Page 4 2. Cord-ee-lee-ah Clark Joo-lee-en Firm/Organization (if applicable) 1. Lakeridge Health 2. Lakeridge Health Job title (if applicable) 1. President and CEO, Lakeridge Health 2. Chair of the Board Address 1. 2. Town/Hamlet 1. Oshawa 2. Oshawa Postal code 1. 2. Email address: 1. 2. Phone number 1. 2. Do you plan to submit correspondence related to this matter? No Do you plan to submit an electronic presentation (i.e. PowerPoint)? If yes, the file must be submitted to the Municipal Clerk’s Department by 2 p.m. on the Friday prior to the meeting date. Yes I acknowledge that the Procedural By-law Permits 10 minutes for delegations. Yes [This is an automated email notification -- please do not respond] Page 5 From:no-reply@clarington.net To:ClerksExternalEmail Subject:New Delegation Request from Pezzetti Date:Monday, April 29, 2024 2:20:40 PM EXTERNAL A new delegation request has been submitted online. Below are the responses provided: Subject Durham Region Transit Presentation Action requested of Council For Information Date of meeting 6/3/2024 Summarize your delegation Service Updates Have you been in contact with staff or a member of Council regarding your matter of interest? Yes Name of the staff member or Councillor. Granville Anderson Will you be attending this meeting in person or online? In person First name: Anthony Single/Last name Pezzetti Firm/Organization (if applicable) Durham Region Transit Job title (if applicable) Deputy General Manager, Operations Page 6 Address Town/Hamlet Whitby Postal code Email address: Phone number Do you plan to submit correspondence related to this matter? No Do you plan to submit an electronic presentation (i.e. PowerPoint)? If yes, the file must be submitted to the Municipal Clerk’s Department by 2 p.m. on the Friday prior to the meeting date. Yes I acknowledge that the Procedural By-law Permits 10 minutes for delegations. Yes [This is an automated email notification -- please do not respond] Page 7 From:no-reply@clarington.net To:ClerksExternalEmail Subject:New Delegation Request from Dakin Date:Wednesday, May 29, 2024 11:05:38 AM EXTERNAL A new delegation request has been submitted online. Below are the responses provided: Subject Municipal Taxes Action requested of Council Reduce Taxes Date of meeting 6/3/2024 Summarize your delegation We wish to speak at the Council meeting in hopes to find some kind of help with municipal tax relief. The taxes go up every year, we do not even have garbage collection, which we pay $4000 per month. The tax increase yearly does not reflect the amount we can increase our rent to pay for it. Have you been in contact with staff or a member of Council regarding your matter of interest? Yes Name of the staff member or Councillor. Willie Woo Will you be attending this meeting in person or online? In person First name: Milton Single/Last name Dakin How to pronounce your name: Canadian Foresters Project (Eastern) Group Firm/Organization (if applicable) Canadian Foresters Project [Eastern] GroupPage 8 Job title (if applicable) President Address Town/Hamlet Bowmanville Postal code Email address: Phone number Do you plan to submit correspondence related to this matter? No Do you plan to submit an electronic presentation (i.e. PowerPoint)? If yes, the file must be submitted to the Municipal Clerk’s Department by 2 p.m. on the Friday prior to the meeting date. No I acknowledge that the Procedural By-law Permits 10 minutes for delegations. Yes [This is an automated email notification -- please do not respond] Page 9 From:no-reply@clarington.net To:ClerksExternalEmail Subject:New Delegation Request from Dickinson Date:Wednesday, May 29, 2024 11:55:49 AM EXTERNAL A new delegation request has been submitted online. Below are the responses provided: Subject Reduction Taxes for Non-profit Affordable Housing Provider Action requested of Council Reduction of Taxes Date of meeting 6/3/2024 Summarize your delegation Larry Dickinson, Milt Dakin - Representatives of Non-Profit Housing Providers Have you been in contact with staff or a member of Council regarding your matter of interest? Yes Name of the staff member or Councillor. Mayor Foster, Councillor Zwart Will you be attending this meeting in person or online? In person First name: Larry Single/Last name Dickinson How to pronounce your name: Larry Dickinson Firm/Organization (if applicable) Page 10 The Durham County Senior Citizens Lodge Job title (if applicable) Chair Address Town/Hamlet Orono Postal code Email address: Phone number Alternate phone number Do you plan to submit correspondence related to this matter? Yes Do you plan to submit an electronic presentation (i.e. PowerPoint)? If yes, the file must be submitted to the Municipal Clerk’s Department by 2 p.m. on the Friday prior to the meeting date. No I acknowledge that the Procedural By-law Permits 10 minutes for delegations. Yes [This is an automated email notification -- please do not respond] Page 11 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 3, 2024 Report Number: PUB-010-24 Authored by: George Acorn, Director Community Services Submitted By: Lee-Ann Reck, Deputy CAO, Public Services Reviewed By: Mary-Anne Dempster, CAO Resolution Number: By-law Number: File Number: Report Subject: Rodenticide Use in Municipal Facilities - Update Recommendations: 1. That Report PUB-010-24, and any related delegations or communication items, be received; 2. That Council endorse the expansion of the rodenticide-free program to all municipally operated recreation facilities, effective July 1, 2024; 3. That the 2025 budget include the $3,600 increased pest control costs to maintain this expanded program; 4. Staff will work collaboratively with other departments and stakeholders to expand the rodenticide free program; 5. That Staff develop an administrative pest management directive with the objective to reduce the use of anti-coagulant rodenticides on all municipal properties; and 6. That all interested parties listed in Report PUB-010-24, and any delegations be advised of Council’s decision. Page 12 Municipality of Clarington Page 2 Report PUB-010-24 Report Overview This report provides an update on the rodenticide-free trial involving the removal of all rodenticide traps at Courtice Community Complex (CCC). As a substitute method for pest control, tin catch traps have been implemented. According to the bi-weekly assessments conducted by our pest control service provider, no signs of rodent presence have been detected within the premises. Given the successful outcomes of this trial phase, staff suggest broadening the scope of the program to encompass the rest of the municipally operated recreation facilities, starting from July 1, 2024. This expansion would incorporate the Alan Strike Aquatic and Squash Centre, Garnet B. Rickard Recreation Complex, South Courtice Arena, Bowmanville Indoor Soccer/Lacrosse Bowl, Darlington Sports Centre, and Diane Hamre Recreation Complex. Staff also propose the creation of a pest control management directive. This administrative document would establish protocols for efficient pest control management, aiming for a responsible and effective extension of the rodenticide-free initiative to all municipally owned buildings and properties. 1. Background 1.1 At the December 18, 2023, Council Meeting report CSD-003-23 was approved authorizing staff to initiate a rodenticide free trial at Courtice Community Complex and to report back on the results prior to summer recess. 1.2 Staff were also to continue investigating the feasibility of a future total ban on rodenticide use for municipal properties and to communicate with other municipalities regarding any actions to date or future plans regarding the use of rodenticides. 2. Trial Program at Courtice Community Complex 2.1 The trial program at CCC commenced January 2, 2024. Municipal staff undertook visual inspections of the exterior of the building to identify potential points of entry. Staff made improvements to exterior envelope to mitigate rodent entry to the building. 2.2 With no exterior rodenticide bait traps in use, staff directed our pest control contractor to remove all interior rodenticide traps from the building. These were replaced with tin catch traps. Since the trial began, the contractor has conducted bi-weekly inspections of the property. To date, no visible rodent activity has been documented. Page 13 Municipality of Clarington Page 3 Report PUB-010-24 3. Rodenticide Free Program Expansion 3.1 Based on the results of the trial program at CCC, staff are recommending the expansion of the rodenticide free program to include all remaining municipally operated recreation facilities. Effective July 1, 2024, staff will direct the contractor to remove all interior rodenticide bait traps at the six remaining recreation facilities. They will be replaced with catch tin traps. There are currently no exterior rodenticide bait traps in place at these facilities. 3.2 Data will continue to be collected and will help inform future expansion to remaining municipally owned properties. The goal of this program is to eliminate anti-coagulant rodenticide use responsibly and effectively at all municipal properties with the aim of minimizing potential adverse impacts and public health risks. 3.3 In other municipalities where rodenticide bans are in place, controlled use of anti- coagulant rodenticides or other regulated substances is permitted only under the direction of senior staff as a last resort. This approach is included in pest management policies, and similar guidance will be incorporated into our pest management directive. 4. Rodenticide Use in Other Municipalities 4.1 Following Council direction, Community Services staff have continued to communicate with previously identified communities on their experience and current practices. 4.2 In December 2023, the City of Pickering adopted a pest management policy that bans all non-essential rodenticide use on municipal properties. However, the policy allows for the authorized use of anti-coagulant rodenticides or other regulated substances for rodent pest management, only when expressly authorized as a last resort option by the Director of Community Services. To date, the staff at the City of Pickering have not identified any issues related to this approach. 4.3 Staff have recently been advised that the City of Toronto continues to investigate this matter and have indicated work on this topic is planned to begin by end of 2024 and continue into 2025. 4.4 Based on discussions with staff at the Township of Minden Hills it has been confirmed that there has been no initiation of a ban on rodenticides. 4.5 Apart from the City of Pickering, staff are not aware of any initiatives being undertaken on the ban of rodenticide use in the remaining lakeshore municipalities. Page 14 Municipality of Clarington Page 4 Report PUB-010-24 5. Financial Considerations 5.1 The additional cost to expand the rodenticide free program at the remaining municipally operated recreation facilities for the remainder of 2024 is approximately $1,800. These costs will be incorporated into the approved 2024 operating budget and no tax levy impact is expected. The annualized cost of approximately $3,600 for this expansion will be included in the 2025 Budget Update as a service level change. 5.2 The cost to further expand the program to other municipal buildings will also be included in the 2025 Budget update to recognize the additional resources that will be required to meet the new service delivery method. These costs are currently being determined. 6. Strategic Plan 6.1 Not applicable. 7. Concurrence 7.1 This report has been reviewed by the Deputy CAO/Treasurer, Finance and Technology who concurs with the recommendations. 8. Conclusion 8.1 It is respectfully recommended that Council approve this report and instruct staff to finalize the expansion of the rodenticide-free program at municipally operated recreation facilities, and to formulate an administrative pest management directive. The primary goal of this directive will be to broaden the scope of the rodenticide -free program to include all buildings and properties owned by the municipality. Staff Contact: Rob Farquharson, Supervisor, Aquatic Operations 905-623-3379 ext. 2541 or rfarquharson@clarington.net. Attachments: Not Applicable Interested Parties: Allison Hansen Janice Freund Page 15 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 3, 2024 Report Number: LGS-021-24 Authored by: John Paul Newman, Deputy Clerk Submitted By: Rob Maciver, Deputy CAO/Solicitor, Legislative Services Reviewed By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology By-law Number: Resolution Number: File Number: Report Subject: Appointment of a Closed Meeting Investigator Recommendations: 1. That Report LGS-021-24, and any related delegations or communication items, be received; 2. That the Ontario Ombudsman be appointed as Clarington’s Closed Meeting Investigator, as of January 1, 2025; 3. That the Closed Meeting Investigator services with the Local Authority Services Ltd. (LAS), be terminated as of December 31, 2024, and By-law 2007-231, appointing LAS as Clarington’s Closed Meeting Investigator, be repealed; and 4. That all interested parties listed in Report LGS-021-24, and any delegations be advised of Council’s decision. Page 16 Municipality of Clarington Page 2 Report LGS-021-24 Report Overview This report recommends appointing the Ontario Ombudsman as Clarington’s Closed Meeting Investigator. In November 2022, Council appointed the Ontario Ombudsman as Clarington’s Ombudsman, to investigate complaints against the Municipality. The Ontario Ombudsman also has the authority under the Ombudsman Act to perform the duties of a Closed Meeting Investigator. Staff are recommending that Clarington stop using the services of LAS and appoint the Ontario Ombudsman as Clarington’s Closed Meeting Investigator to provide consistency, among other things, with these two accountability regimes. 1. Background Authority to Appoint Closed Meeting Investigator 1.1 On January 1, 2008, subsection 239.1 of the Municipal Act came into effect which permits any person to request an investigation be undertaken to determine whether a municipality or local board (excluding a police service board or library board), or a committee of either, has complied with the closed meeting rules contained within the Municipal Act, or a procedure by-law under section 238(2) of the Municipal Act. 1.2 Subsection 239.2 of the Municipal Act authorizes a municipality to appoint an investigator to conduct a review of any requests which may be made by the public and to report on the investigation. Current Appointment 1.3 In 2007, Council considered Report CLD-036-07, and subsequently, passed By-law 2007-231, appointing the LAS as Clarington’s Closed Meeting Investigator effective January 1, 2008 coinciding with the enactment of the new legislation, in accordance with the above noted sections of the Municipal Act. 1.4 The current agreement with LAS included a renewal section that stated that the Agreement would automatically renew from year to year unless, and until, terminated by either party upon 90 days prior written notice. 1.5 LAS outsources the closed meeting investigator service to Aird and Berlis LLP. If a complaint was filed against Clarington, Aird and Berlis would appoint one of five “Review Officers” and the fee ranges from $495 to $875 per hour as of 2024. 1.6 The 2024 retainer fee for LAS is $250 plus tax per year. Page 17 Municipality of Clarington Page 3 Report LGS-021-24 1.7 Both fees above have increased from the 2023 fees which were $200 plus tax for the retainer and from $395 to $825 per hour for an investigation by a “Review Officer” from Aird and Berlis LLP. It is expected these fees will continue to rise each year. 2. Description Ontario Ombudsman 2.1 Subsection 239.1(b) of the Municipal Act states that, if a municipality has not appointed a closed meeting investigator under subsection 239.2(1), the Ombudsman appointed under the Ombudsman Act is the investigator by default. If Council chooses to repeal the appointment of LAS and terminate the agreement, and no other investigator is appointed, the Ontario Ombudsman becomes the Closed Meeting Investigator for Clarington. 2.2 According to the Ontario Ombudsman 2022-2023 Annual Report, the Ombudsman is the Closed Meeting Investigator for 266 municipalities, as of March 31, 2023. There were 95 complaints about closed meetings, and the Ombudsman reviewed 79 meetings of 47 different municipalities and local boards and issued 17 reports and 22 letters on their findings. All of these reports and letters can be found on the Ombudsman website and in a searchable online database. 2.3 If appointed, the Ontario Ombudsman has the expertise and experience to handle an y closed meeting investigation requests, will provide consistency in decisions with other Ontario Municipalities, and will be the single source for complaints against the municipality, whether they be under the Ombudsman provisions or the closed meeting provisions of the Municipal Act. 2.4 There is no fee to the municipality to use the services of the Ontario Ombudsman. Therefore, the fees associated with using LAS would be a saving to the Municipality if the Ontario Ombudsman is appointed. Durham Region Review 2.5 The following is a table of who performs the duties of Closed Meeting Investigator in Durham Region: Ontario Ombudsman LAS Ajax Region of Durham Oshawa Brock Pickering Uxbridge Scugog Whitby Page 18 Municipality of Clarington Page 4 Report LGS-021-24 Complaint Procedure 2.6 The current process for receiving complaints is for the complainant to submit their complaint to the Clerk, who then creates a package of information for the external Closed Meeting Investigator. 2.7 Although anyone can still reach out to the Clerk to get clarification on closed meetings, the new process would be for the complainant to submit their complaint directly to the Ontario Ombudsman, who has a form on their website. 2.8 Except in very limited circumstances the complaint to the Ontario Ombudsman shall be made in writing. 2.9 The Ontario Ombudsman may investigate whether a municipality has complied with section 239 of the Municipal Act or the municipality’s procedure by-law, relating to a meeting or part of a meeting that was closed to the public. 2.10 There are also limited situations where the Ontario Ombudsman will not investigate or may refuse to investigate further if the investigation has already begun. If this occurs, the Ontario Ombudsman is required to notify the complainant in writing of that decision. 2.11 The delegation of the Head under the Ombudsman Act will be determined with the Delegation of Authority review. 3. Financial Considerations 3.1 There are no fees for a municipality to use the services of the Ontario Ombudsman. Therefore, the municipality will save $250 plus tax per year and the current hourly rate of $495-$875 if an investigation is conducted. 4. Strategic Plan 4.1 L.2: Finances and operations are efficiently and responsibly managed. 5. Concurrence 5.1 Not applicable. 6. Conclusion 6.1 It is respectfully recommended that the Ontario Ombudsman be appointed as Clarington’s Closed Meeting Investigator, and that the agreement with LAS be terminated. Page 19 Municipality of Clarington Page 5 Report LGS-021-24 Staff Contact: John Paul Newman, Deputy Clerk, jnewman@clarington.net. Attachments: Attachment 1 – By-law to repeal By-law 2007-231, appointing the Local Authority Services Ltd. (LAS) as Clarington’s Closed Meeting Investigator Interested Parties: The following interested parties will be notified of Council's decision:  Ontario Ombudsman  Local Authority Services Limited (LAS) Page 20 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 2024-XXX Being a by-law to repeal By-law 2007-231, to appoint Local Authority Services Ltd. as the investigator pursuant to sections 8, 9, 10 and 239.1 of the Municipal Act, 2001, as amended. Passed in Open Council this 24th day of June, 2024. _____________________________________ Adrian Foster, Mayor _____________________________________ June Gallagher, Municipal Clerk Written approval of this by-law was given by Mayoral Decision MDE-2024-XXX dated XXXX XX, 2024. Page 21 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 3, 2024 Report Number: LGS-023-24 Authored by: June Gallagher, Municipal Clerk Submitted By: Rob Maciver, Deputy CAO/Solicitor, Legislative Services Reviewed By: Mary-Anne Dempster, CAO Resolution Number: By-law Number: File Number: Report Subject: Council-Staff Relations Policy – Update Recommendations: 1. That Report LGS-023-24, and any related delegations or communication items, be received; 2. That the updated Council-Staff Relations Policy, attached to Report LGS-023-24, as Attachment 1, be approved; 3. That the Council-Staff Relations Policy be updated on Clarington’s Accountability and Transparency webpage; and 4. That all interested parties listed in Report LGS-023-24, and any delegations be advised of Council’s decision. Page 22 Municipality of Clarington Page 2 Report LGS-023-24 Report Overview This report responds to the Council direction to review the Council-Staff Relations Policy in light of the passage of the Strong Mayors Act. In addition, Staff reviewed the policy with a view to streamlining the content. This report provides the background, the review, and explanations of the changes to the Policy. 1. Background 1.1 Arising out of the Strong Mayors Act, Staff brought Report LGS-024-23 to the General Government Committee of September 11, 2023. The Committee passed the following Resolution #GG-145-23 (excerpted): That Staff bring forward updates to the Council-Staff Relations Policy E12, as it relates to the strong mayors powers, during a fuller review of the policy. 2. Legislative Requirement 2.1 The Province’s passage of Bill 68, Modernizing Ontario’s Municipal Legislation Act, 2017, with latter proclamations in March 2019, prompted the Municipality to review several accountability and transparency requirements. Subsection 270 (1) 2.1 of the Act requires that “a municipality shall adopt and maintain policies with respect to the relationship between members of council and the officers and employees of the municipality.” Following consideration of Report CLD-004-19, Council approved the current Council-Staff Relations Policy, Policy E12. 2.2 Since the Act states that it is the “Municipality” that must adopt the policy, this is a Council Policy in the sense of the new approach to Clarington’s policy framework. 3. General Review of Council-Staff Relations Policy 3.1 When the Council-Staff Relations Policy was developed, it was acknowledged that it was a consolidation of relevant sections of other accountability and transparency policies which were already in place, including:  Council Code of Conduct  Employee Code of Ethics  Harassment Policy  Transparency and Accountability Policy  Procedural By-law Page 23 Municipality of Clarington Page 3 Report LGS-023-24 3.2 However, there were some sections which were pulled out of other policies (i.e. the Procedural By-law, the Transparency and Accountability Policy, and the Council Code of Conduct) at the time. 3.3 In reviewing other municipalities’ approach to their policies, Staff recommend a more streamlined approach (which is the same approach as Durham Region’s). As a result, the attached draft policy (Attachment 1) has removed the excerpted sections from other policies and simply referenced the policy document. 3.4 This review of other municipalities’ policies also revealed that Clarington’s should include a reference to the Use of Corporate Resources for Elections Purposes Policy, therefore Staff have added this to the attached. 4. Strong Mayors Act – Review and Implications 4.1 As noted in Report LGS-024-23, the requirement within the Council-Staff Relations Policy that every Member of Council acknowledges that Staff operate in accordance with the decisions of Council and not any individual Member, no longer applies to the Mayor, who can now direct Staff. 4.2 Therefore, Staff are recommending that two sections be added to address this change. 5. Housekeeping of the Policy 5.1 Staff are recommending slight wording changes, including the definition of “Employee” and “Member”. 5.2 In accordance with the new policy framework, this policy has been converted to the new Council Policy template. 6. Financial Considerations Not Applicable. 7. Strategic Plan Not Applicable. Page 24 Municipality of Clarington Page 4 Report LGS-023-24 8. Concurrence This report has been reviewed by the Senior Leadership Team who concur with the recommendations. 9. Conclusion It is respectfully recommended that Council approve the updated Council-Staff Relations Policy (Attachment 1). Staff Contact: June Gallagher, Municipal Clerk, jgallagher@clarington.net. Attachments: Attachment 1 – Updated Council-Staff Relations Policy Interested Parties: Principles Integrity (Clarington’s Integrity Commissioner) Page 25 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Page 1 of 5 Number: CP-00# Title: Council-Staff Relations Policy Type: Political Governance Sub-type: Accountability and Compliance Owner: Legislative Services Department Clerk’s Division Approved By: Council Approval Date: February 25, 2019 Effective Date: February 25, 2019 Revised Date: June 24, 2024 Applicable to: All Employees and All Members of Council 1. Legislative or Administrative Authority: 1.1. Subsection 270(1) of the Municipal Act, 2001, requires every municipality to adopt and maintain this policy. 2. Purpose: 2.1. This policy provides guidance on how the Municipality of Clarington will promote a respectful, tolerant, and harassment-free relationship and workplace between Members of Council and the officers and employees of the Municipality of Clarington. 3. Scope: 3.1. This policy applies to all Clarington employees and all Members of Council. 4. Definitions: 4.1. “Employee” has the same meaning as provided in the Employment Standards Act, 2000, S.O. 2000, c. 41, and are those persons who are employed by the Municipality of Clarington. 4.2. “Member” is a person elected, or appointed, to the Municipality of Clarington’s Council. Page 26 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Page 2 of 5 5. Policy Requirements: General Guidance 5.1. The Municipality of Clarington promotes a respectful, tolerant, harassment -free relationship and workplace for Members of Council and the officers and employees of the Municipality of Clarington, guided by the Procedural By-law, Council Code of Conduct, the Employee Code of Conduct, Code of Ethics Policy, and the Harassment Policy. These policies collectively comprise the Council and Staff Relations Policy. Direction from Council to Staff 5.2. Members acknowledge that only Council, as a whole, has the capacity to direct employees. 5.3. Notwithstanding the previous statement, the Mayor may, in accordance with the Strong Mayor powers within Part VI.1 of the Municipal Act, direct Staff in certain circumstances. Concerns from Council 5.4. Members will direct any concerns, respecting employees, through the Chief Administrative Officer. 5.5. Notwithstanding the previous statement, the Mayor may, in accordance with the Strong Mayor powers within Part VI.1 of the Municipal Act, deal directly with employees under their responsibility. Relationship Guidance 5.6. The relationship between Members and the Employees is guided by the following: Code of Conduct for Members of Council 5.6.1. The Council Code of Conduct encourages high standards of conduct among Members. Adherence to these standards protects and maintains the reputation and integrity of the Members and the Municipality. Page 27 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Page 3 of 5 Employee Code of Ethics 5.6.2. The Employee Code of Ethics is founded on the notion of ensuring integrity in public services through the recognition and promotion of the fundamental principles of transparency, impartiality, respect, and accountability, including interactions with Members of Council. As such, these general principles are detailed in the prevailing Employee Code of Ethics Policy. Harassment Policy for Employees 5.6.3. The Corporation of the Municipality of Clarington is dedicated to providing a healthy and safe work environment. Acts of workplace harassment by staff, volunteers, visitors, contractors, or vendors will not be tolerated. The Municipality of Clarington has a policy of zero tolerance towards workplace harassment. 5.6.4. The Harassment Policy provides a standard of conduct for Employees in the carrying out of their work assignments and their relationships with the public, elected officials, and each other. Any compla ints related to Members or Employees must follow the process outlined in the prevailing Harassment Policy, which indicates that the matter will be addressed through the Council Code of Conduct, Complaint Procedure, or by the Integrity Commissioner. The Integrity Commissioner will report to Council in accordance with the governing protocol of that Office. Transparency and Accountability Policy 5.6.5. The Transparency and Accountability Policy provides guiding principles to ensure Clarington’s commitment to being accountable to the public for its actions, through responsible and transparent behaviour. Procedural By-law 5.6.6. The Procedural By-law establishes the rules, procedures and conduct applicable to Council and Committee meetings. Page 28 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Page 4 of 5 Use of Corporate Resources for Election Purposes Policy 5.6.7. The Use of Corporate Resources for Election Purposes Policy provides guidance on the appropriate use of corporate resources during municipal, school board, provincial and federal election campaigns, and campaigns on a question on the ballot to protect the interests of both Members and the Corporation. 6. Roles and Responsibilities: 6.1. Council is responsible for: 6.1.1. Adhering to this policy and its governing provisions. 6.2. Chief Administrative Officer (CAO) is responsible for: 6.2.1. Ensuring that all employees are aware of this policy and adhere to the policy and its governing provisions. 6.3. All Staff are responsible for: 6.3.1. Adhering to this policy and its governing provisions. 7. Related Documents: 7.1. Procedural By-law 7.2. Council Code of Conduct 7.3. Employee Code of Conduct 7.4. Code of Ethics Policy 7.5. Harassment Policy 7.6. Use of Corporate Resources for Election Purposes Policy Page 29 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Page 5 of 5 8. Inquiries: 8.1. Municipal Clerk 9. Revision History: Date Description of Changes Approved By 2019-02-25 Arising out of Report CLD-004-19, initial creation of Council-Staff Relations Policy Council 2024-06-24 Arising out of Report LGS-023-24, additions to definitions; sections regarding Strong Mayors and Use of Corporate Resources for Elections Purposes Policy. Converted to new Council Policy template. Council Page 30 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 3, 2024 Report Number: LGS-026-24 Submitted By: Rob Maciver, Deputy CAO/Solicitor Reviewed By: Mary-Anne Dempster, CAO Resolution#: File Number: By-law Number: Report Subject: Delegation of Authority By-law Recommendations: 1. That Report LGS-026-24, and any related delegations or communication items, be received; 2. That the draft Delegation of Authority By-law, attached to Report LGS-026-24, as Attachment 2, excluding the columns titled “Recommended Action” and “Notes”, be approved; and 3. That the following be rescinded and replaced with the delegation of authority within the draft by-law:  The Council approval of Resolution #GG-077-23 from March 20, 2023, regarding the authority to enter into Defibrillator Program Agreements;  The Council approval of Resolution #GG-201-23, from December 4, 2023, regarding the authority to execute any future amendments to the trail Licence Agreement required to accommodate the operational needs of either Ontario Power Generation or the Municipality;  The last paragraph of Resolution #C-190-15, from June 1, 2015, regarding the authority to appoint private parking enforcement officers; 4. That the Flag Protocol Policy and Proclamation Policy be up dated to refer to the Delegation of Authority By-law; 5. That all interested parties listed in Report LGS-026-24, and any delegations be advised of Council’s decision. Page 31 Municipality of Clarington Page 2 Report LGS-026-24 Report Overview This report provides an overview of the legislative framework and authority for delegation of certain Council powers and duties to designated Staff. Additionally, this report provides Staff’s recommended approach to consolidate, and update, Council’s delegation of authority to Staff, to allow Council to decide on approving a Delegation of Authority by-law. 1. Background Legislative Authority 1.1 Recognizing the challenges inherent in the municipal decision-making process, the provincial government introduced amendments to the Municipal Act, 2001 , in 2006, to allow Council to delegate certain routine powers and duties to designated staff. The legislative amendments were also intended to help further the ability of municipalities to exercise natural person powers and demonstrate maturation as a responsible, accountable, and transparent order of government. 1.2 Subsection 23.1 of the Municipal Act authorizes: “a municipality to delegate its powers and duties under this or any other Act to a person or body subject to the restrictions set out in this Part.” 1.3 Subsection 270(1) 6 of the Municipal Act states that: “a municipality shall adopt and maintain policies with respect to the delegation of its powers and duties.” 1.4 There are some powers that Council cannot delegate (such as Section 34.1 of the Planning Act related to requesting that the Minister make, or amend an order). See also Attachment 1 for details, from the Municipal Act, on restrictions. 1.5 This discretionary authority to delegate enables a Council to delegate its various legislative and quasi-judicial powers and duties "subject to any limits ... and to any procedural requirements, including conditions, approvals, and appeals". Page 32 Municipality of Clarington Page 3 Report LGS-026-24 1.6 Other legislation explicitly states that the Municipality/Council can delegate authority. For instance, section 5 of the Planning Act states that: “where the Minister has delegated any authority to a council under section 4, such council may, in turn, by by-law, and subject to such conditions as may have been imposed by the Minister, delegate any of such authority, other than the authority to approve official plans or the authority to exempt from approval plans as official plans or amendments to official plans, to a committee of council or to an appointed officer identified in the by-law either by name or position occupied and such committee or officer, as the case may be, has, in lieu of the Minister, all the powers and rights of the Minister in respect of such delegated authority and shall be responsible for all matters pertaining thereto including the referral of any matter to the Tribunal.” 1.7 It is worth noting that any delegation by Council is non-exclusive (i.e. Council can still exercise the power) and revocable at any time by resolution of Council. 1.8 Council may choose to delegate administrative powers and duties to:  Individuals (including Staff);  Committees of Council;  Local Boards;  Municipal Service Boards; or  Municipal Service Corporations (but not legislative or quasi-judicial powers). 1.9 Council may choose to delegate legislative and quasi-judicial powers and duties to:  One, or more Members of Council; or  A Council Committee;  A body, having at least two members, of which at least half are Council members, Council appointees, or combination of Council Members or Council appointees;  An individual who is an officer, employee, or agent of the Municipality (if the power delegated is of a “minor nature” as it applies to legislative powers). Purpose of a Delegation of Authority By-law 1.10 The purpose of the Act’s enabling provision is to permit Council to focus on larger issues facing the municipality and permit routine matters to be delegated to achieve efficiencies for Council and the general public. Page 33 Municipality of Clarington Page 4 Report LGS-026-24 1.11 A delegation of authority by-law is used to:  provide clarity to Staff on who is responsible for decision-making and signing authority;  help streamline Council's decision-making process and enable it to focus on larger issues more strategically;  provide authority of Staff to deal with routine matters which are currently being brought before Council to improve the efficiency of Council’s decision- making processes;  provide a transparent outline of the duties being carried out by Staff on behalf of Council;  future-proof against changes in governance and staff titles;  provide good governance and demonstrate accountability and transparency for items that are operational; and  provide the public with a better understanding of the Municipality’s decision - making and approval process. 1.12 Several factors affect the efficiency of Council's decision-making processes, including the volume of the Municipality’s growth, planning, and infrastructure matters; administrative efficiencies in the production and review of Council reports; changes to the organization; legislative constraints in the authorities and responsibilities of Council and Municipal Staff; the complexity of stakeholder input; and the organization, preparation, scheduling, rules, and conduct of meetings. Clarington’s Current Delegation of Authority 1.13 Over the years, Council has delegated certain functions to Staff via resolution, policy, and by-laws. 1.14 Clarington has not had a fully consolidated “delegation of authority by-law”, but there are many by-laws, resolutions, and policies that delegate authority to Staff that satisfies the legislation. 2. Review of Delegation of Authority Approach 2.1 When reviewing delegated items within the by-law, Staff took the approach that the purpose of the by-law is to be a consolidated directory of delegated authority and , in the absence of other direct delegations, to perform the direct delegation within this by-law. Page 34 Municipality of Clarington Page 5 Report LGS-026-24 2.2 Unless required in the context of the delegation, appointments are excluded from the delegation of authority by-law. However, the authority for Staff to make appointments is included. 2.3 Finding a balance, while also providing consistency, effectiveness, and efficiency in the decision-making in the approval process is critical and will always be based on a level of transparency, trust, and accountability. 2.4 Staff gathered “existing delegation of authority” documents (by-laws, policies, resolutions) and reviewed them with the following criteria in mind:  Is it an “authorized delegation of authority” (i.e. is it allowed by legislation)?  Is the current delegation made to the correct person?  Authority to bind the corporation = if the authority is directed by Council, then the employee has the “authority to bind” for that matter.  Should the existing delegation stay in the current document OR be repealed and placed in the new delegation of authority by-law? Examples of authorities that will remain in their existing delegation document (to provide full context within that document) are (although this may change as these by-laws are updated): o Permitting such as the Lotteries, Special Events By-law, Site Alteration By-law, Sign Permit Policy and By-law, Parks By-law, and the Open Air Burning By-law. o Regulatory by-laws such as the building by-law, noise by-law, fireworks, licensing by-laws, traffic, and site plan control. o Financial authorities such as the “Bank Signing Authority Policy”, and the “Governing the Sale of Land Policy” and “Capital Over Expenditure Policy”, the “Investment Policy”, the “Donations Receipting Policy”, the “Surplus and Deficit Allocation Policy”, and the “Commodity Hedging Policy.” o Guideline Documents such as the Architectural Guidelines Policy. 2.5 After gathering the information into a single table, other municipalities’ delegation of authority by-laws were reviewed, to determine whether the table was missing any delegations. Page 35 Municipality of Clarington Page 6 Report LGS-026-24 2.6 The table was then forwarded to the Senior Leadership Team for review with the following in mind:  Should the existing delegation remain?  Is the current delegation made to the correct person?  Are there any other delegations/routine powers that should be added to make for a more efficient organization or management? o Can any new delegations ensure appropriate accountability and reporting (where applicable)? o Is a new delegation minor in nature? o Is a new delegation administrative in nature (i.e. not legislative)? o Will the new delegation assist Council and Staff to improve the efficiency of its decision-making processes? Highlights of the new Delegation of Authority 2.7 Although it may look like a lengthy list – it is important to bear in mind that 36 delegations existed in other formats; and of the 90 new ones, most exist in other municipalities. 2.8 The delegation of these powers and authorities is supported by professional and accountable staff and each delegated authority is provided to specific positions within the organization. These decisions and approvals are also supported by having strong corporate and administrative policies and procedures in place and ties in with the recent report on the “Clarington Policy System.” 2.9 Approvals provided by Staff, using delegated authorities, do not require staff reports to be brought to Council, unless specified in the “Checks and Balances” column. 2.10 The two columns on the right (“Recommended Action” and “Notes”) of the table attached to the proposed by-law are provided for Council’s information and will not form part of the final by-law and will be removed for the approved by-law. 2.11 As part of the implementation of this delegation of authority by-law, it is necessary to either repeal, or amend, existing by-laws, or rescind existing resolutions (to be replaced with the authority within this delegation of authority by-law). Page 36 Municipality of Clarington Page 7 Report LGS-026-24 General Schedule 2.12 The powers and authority under the “General” heading in the delegation of authority by- law are proposed to allow delegates which are not specific to a Department. It allows them to conduct tasks required for the day-to-day operations. These powers are for matters that are administrative and have limited, to no, financial implications. General authorities include:  Flags and proclamations  Minor agreements  Legislative comments/input CAO 2.13 In February 2024, arising out of Report CAO-001-24, Council approved an updated By- law to outline the duties and responsibilities of the CAO. This delegation of authority is intended to complement the “CAO’s By-law.” Finance Schedule 2.14 Section 286 of the Municipal Act states: “(5) The municipality may delegate to any person all or any of the powers and duties of the treasurer under this or any other Act with respect to the collection of taxes. (6) The treasurer may continue to exercise the delegated powers and duties, despite the delegation.” 2.15 Subsection 386(2) of the Municipal Act states that “the Treasurer may, in writing, delegate any power or duty granted to or vested in the treasurer under this Part to any officer or employee of the municipality.” 2.16 Powers and authorities under the “Finance” section include delegations to allow Finance staff to conduct tasks required to implement Council-approved budgets and address administrative financial matters. Many of these are minor in nature but assist greatly in providing enhanced service delivery. This includes the ability to address matters that have small financial implications including the authority to extend payment terms on outstanding accounts, collect on outstanding accounts, write off unpaid accounts for amounts less than limits noted. Page 37 Municipality of Clarington Page 8 Report LGS-026-24 2.17 Additionally, it provides for the authority to enter into a contract for the services of a fiscal agent, legal services and clearing and depository services to handle the Municipality’s debenture issues in accordance with very prescriptive required processes. Legislative Services Schedule 2.18 The following delegation of authority, of note, have been added for Legislative Services:  Several related to streamlining and clarifying the agreement and court processes.  A couple related to Animal Sheltering.  The Municipal Clerk, in consultation with the Municipal Solicitor, be authorized to repeal by-laws that have exhausted their authority or are otherwise of no further force or effect and shall do so by by-law.  Housekeeping of authorities related to records management. Planning and Infrastructure Schedule 2.19 The powers and authority under the “Planning and Infrastructure” section in the Delegation of Authority By-law are to be delegated to the Deputy CAO of Planning and Infrastructure to allow them to carry out tasks required to process and approve land use planning applications made under the Planning Act a nd Condominium Act. 2.20 In the past, the Director of Planning and Infrastructure had been delegated powers, through resolutions and by-laws, which are folded into this by-law, as well as some new powers. 2.21 New ones in this section relate to streamlining the agreement and application processes. Public Services 2.22 The powers and authority under the “Public Services” section are delegated to allow Staff to carry out tasks required to implement projects and programs encompassed in Council-approved budgets and address routine matters at Municipal properties and for Municipal infrastructure, Community Services, and Emergency and Fire Services. Page 38 Municipality of Clarington Page 9 Report LGS-026-24 2.23 The by-law addresses authorities regarding Municipal roads, including temporarily closing roads for social or community events, railway crossing improvements, and safety reasons. 2.24 The following have been added:  to address minor matters affecting Municipal properties, such as agreements for access or encroachment on Municipal lands, installation of utilities and telecommunication infrastructure on Municipal lands, and installation of trees on Municipal lands.  Emergency Service matters  Operational road-related matters 3. Future Updates to Delegation of Authority 3.1 As by-laws are written, or amended, authorization sections should be written/updated to refer to the Delegation of Authority By-law. 3.2 It is recognized that there will be changes, additions, and deletions to the delegation of authority by-law as Staff and Council explore other opportunities for delegated authority and process/decision efficiency. Therefore, we would expect that updates will happen periodically to improve the operation and effectiveness of the by-law. 4. Financial Considerations Not Applicable. 5. Concurrence This report has been reviewed by all Deputy CAOs who concur with the recommendations. 6. Strategic Plan 6.1 Strategic Priority L.1.3 “to empower staff to identify opportunities to improve efficiency and effectiveness.” 6.2 The “Lead Pillar” which states that Clarington will be a leader in the delivery of efficient, effective, and meaningful municipal services. Page 39 Municipality of Clarington Page 10 Report LGS-026-24 7. Conclusion It is respectfully recommended that the Delegation of Authority By-law, delegating authority of Council to specified Staff, be enacted. Staff Contact: June Gallagher, Municipal Clerk, 905-623-3379 ext. 2102 or clerks@clarington.net. Attachments: Attachment 1 – Excerpt from the Municipal Act – Restrictions on Delegation of Authority Attachment 2 – Delegation of Authority By-law Interested Parties: There are no interested parties to be notified of Council's decision. Page 40 Municipality of Clarington Page 11 Report LGS-026-24 Attachment 1 to Report LGS-026-24 Municipal Act Excerpt Restrictions on Delegations Subsection 23.1(2): 1. A delegation may be revoked at any time without notice unless the delegation by-law specifically limits the municipality’s power to revoke the delegation. 2. A delegation shall not limit the right to revoke the delegation beyond the term of the council which made the delegation. 3. A delegation may provide that only the delegate can exercise the delegated powe r or that both the municipality and the delegate can exercise the power. 4. A delegation or deemed delegation under paragraph 6 of a duty results in the duty being a joint duty of the municipality and the delegate. 5. A delegation may be made subject to such conditions and limits as the council of a municipality considers appropriate. 6. Where a power is delegated, the power is deemed to be delegated subject to any limits on the power and to any procedural requirements, including conditions, approvals and appeals which apply to the power and any duties related to the power are deemed to be delegated with the power. Subsection 23.1(3): The conditions and limits referred to in paragraph 5 of subsection (2) may include such matters as the following: 1. A requirement that the delegate act by by-law, resolution or otherwise, despite subsection 5 (3). 2. Procedures that the delegate is required to follow. 3. The accountability of the delegate and the transparency of the delegate’s actions and decisions. Page 41 Municipality of Clarington Page 12 Report LGS-026-24 Restriction re delegation of legislative and quasi-judicial powers 23.2 (1) Sections 9, 10 and 11 do not authorize a municipality to delegate legislative and quasi-judicial powers under any Act except those listed in subsection (2) and the legislative and quasi-judicial powers under the listed Acts may be delegated only to, (a) one or more members of its council or a council committee; (b) a body having at least two members of whom at least 50 per cent are, (i) members of its council, (ii) individuals appointed by its council, (iii) a combination of individuals described in subclauses (i) and (ii); or (c) an individual who is an officer, employee or agent of the municipality. Restriction re applicable Acts (2) For the purposes of subsection (1), the listed Acts are this Act, the Planning Act, a private Act relating to the municipality and such other Acts as may be prescribed. Restriction re officers, employees, etc. (4) No delegation of a legislative power shall be made to an individual described in c lause (1) (c) unless, in the opinion of the council of the municipality, the power being delegated is of a minor nature and, in determining whether or not a power is of a minor nature, the council, in addition to any other factors it wishes to consider, shall have regard to the number of people, the size of geographic area and the time period affected by an exercise of the power. (5) Without limiting subsection (4), the following are examples of powers considered to be of a minor nature: 1. The power to close a highway temporarily. 2. The power to issue and impose conditions on a licence. 3. The powers of the council of a municipality that are described in the following provisions of the old Municipal Act, as those provisions read on December 31, 2002: i. Paragraphs 107, 108, 109 and 110 of section 210. [related to acts after polling day] Page 42 Municipality of Clarington Page 13 Report LGS-026-24 ii. Paragraph 3 of section 308 [see below]: For placing or permitting any person under such conditions as may be agreed upon to place, construct, install, maintain and use objects in, on, under or over sidewalks and highways under its jurisdiction, to permit any person to make, maintain and use areas under and openings in the highways and sidewalks, for prescribing the terms and conditions upon which the same are to be placed, constructed, installed, maintained or used. iii. Subsection 312 (2) and clauses 312 (4) (a) and (b). 2006, c. 32, Sched. A, s. 15. [related to trees] Powers that cannot be delegated 23.3 (1) Sections 9, 10 and 11 do not authorize a municipality to delegate any of the following powers and duties: 1. The power to appoint or remove from office an officer of the municipality whose appointment is required by this Act. 2. The power to pass a by-law under section 400.1 and Parts VIII, IX, IX.1 and X. 3. The power to incorporate corporations in accordance with section 203. 4. The power to adopt an official plan or an amendment to an official plan under the Planning Act. 5. The power to pass a zoning by-law under the Planning Act, except as provided under section 39.2 of that Act. 6. The powers to pass a by-law under subsections 108 (1) and (2) and 110 (3), (6) and (7). 7. The power to adopt a community improvement plan under section 28 of the Planning Act, if the plan includes provisions that authorize the exercise of any power under subsection 28 (6) or (7) of that Act or under section 365.1 of this Act. 8. The power to adopt or amend the budget of the municipality. 9. Any other power or duty that may be prescribed. Delegation of administrative powers (2) Nothing in subsection (1) prevents a municipality from delegating its administrative powers. Page 43 Municipality of Clarington Page 14 Report LGS-026-24 Delegation re hearings 23.5 (1) This section applies when a municipality is required by law to hold a hearing or provide an opportunity to be heard before making a decision or taking a step, whether the requirement arises from an Act or from any other source of law. (2) Despite subsection 23.2 (1), sections 9, 10 and 11 authorize a municipality to d elegate to a person or body described in that subsection the power or duty to hold a hearing or provide an opportunity to be heard before the decision is made or the step is taken. (3) If a municipality delegates a power or duty as described in subsection (2) but does not delegate the power to make the decision or take the step, the following rules apply: 1. If the person or body holds the hearing or provides the opportunity to be heard, the municipality is not required to do so. 2. If the decision or step constitutes the exercise of a statutory power of decision to which the Statutory Powers Procedure Act applies, that Act, except sections 17, 17.1, 18 and 19, applies to the person or body and to the hearing conducted by the person or body. Page 44 Attachment 2 to Report LGS-26-24 Page 1 of 8 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 2024-XXX Being a By-law to provide delegations of authority from the Council of the Municipality of Clarington to Committees and Clarington Municipal Staff. Whereas Subsection 23.1(1) of the Municipal Act, 2001, as amended, authorizes a municipality to delegate its powers and duties under the Municipal Act or any other Act to a person or body, subject to the restrictions set out in the Municipal Act; And whereas Subsection 270(1)6 of the Municipal Act, 2001, as amended, states that a municipality shall adopt and maintain policies with respect to the delegation of its powers and duties; And whereas Subsection 275(6) of the Municipal Act, 2001, as amended, states that nothing in this section prevents any person or body exercising any authority of a municipality that is delegated to the person or body prior to nomination day for the election of the new council; And whereas the efficient management of the municipal corporation and the need to respond to issues in a timely manner require Council to entrust certain powers and duties to Committees and Staff while concurrently maintaining accountability, which can be effectively accomplished through the delegation of legislative and administrative functions; And whereas, arising out of Report LGS-026-24, the Council of the Municipality of Clarington has deemed it desirable and efficient to delegate certain powers pursuant to the provisions of the Municipal Act, 2001 to enhance the efficiency of its decision making and administrative processes; Now, therefore, the Council of the Municipality of Clarington enacts as follows: Short Title 1. The short title of this by-law is the “Delegation of Authority By-law.” Page 45 Delegation of Authority By-law 2024-xxx Page 1 of 8 Definitions 2. In this By-law: (a) “Administrative Powers” includes all matters required for the management of the Corporation which includes Staffing and the provision of services. (b) “Agreement” means a contract, or other legally binding document. (c) “By-law” means this By-law, as it may be amended from time to time, including schedules. (d) “CAO” means the Municipality’s Chief Administrative Officer and the person who holds that position, or another person designated by Council as described in Section 229 of the Municipal Act, 2001. (e) “Chief Building Official” means the Municipality’s Chief Building Official or any acting or deputy Chief Building Official. (f) “Council” means the Council of the Municipality of Clarington. (g) “Deputy CAO/Planning & Infrastructure” means the Municipality’s Deputy CAO/Planning & Infrastructure, or any acting Deputy CAO/Planning & Infrastructure. (h) “Deputy CAO/Public Services” means the Municipality’s Deputy CAO/Public Services, or any acting Deputy CAO/Public Services. (i) “Deputy CAO/Solicitor” means the Municipality’s Deputy CAO/Solicitor, or any acting Deputy CAO/Solicitor. (j) “Deputy CAO/Treasurer” means the Municipality’s Deputy CAO/Treasurer, where “Treasurer” meets the definition of “Municipal Treasurer” as set out in Section 286 of the Municipal Act, 2001. Page 46 Delegation of Authority By-law 2024-xxx Page 2 of 8 (k) “Deputy Treasurer” means one of the Municipality’s Deputy Treasurer or any acting Deputy Treasurer. (l) “Designate” means any individual within the Municipality appointed from time to time to act on behalf of the appointing person in respect of the exercise of their delegated authority. (m)“Head of Department” means a person who is responsible for a Department, and their delegate(s) or, in the event of organizational changes, another person designated by Council or the CAO. (n) “Lease” means a contract by which one conveys real estate, equipment, or facilities for a specified term, for specified conditions and for a specified rent. (o) “Legislative Powers” includes all matters where Council acts in a legislative and quasi-judicial function, including enacting by-laws, setting policies, and exercising adjudicative decision-making authority. (p) “Licence” means an authorization by a regulatory authority. (q) “Mayor” means the head of Council or, as applicable, the Acting Mayor. (r) “Municipal Clerk” means the Municipality’s Municipal Clerk or any acting or Deputy Clerk, or their designate, appointed by Council to perform the duties of the Clerk described in Section 228 of the Municipal Act, 2001. (s) “Municipality” means the Corporation of the Municipality of Clarington. (t) “OLT” means the Ontario Land Tribunal under the Ontario Land Tribunal Act, 2021, or its successor organization. General 3. For the purpose of subsection 270(1)6 of the Municipal Act, 2001, this By-law shall satisfy the requirement to adopt and maintain a policy on the delegation of its powers and duties. Page 47 Delegation of Authority By-law 2024-xxx Page 3 of 8 4. Pursuant to subsection 23.2(4) of the Municipal Act, 2001, any legislative powers delegated within this By-law are expressly of a minor nature having regard to the number of people, the size of geographic area, and the time period affected by the exercise of each such power. General Delegation 5. All delegations of Council powers, duties, and functions shall be listed in Schedule “A” of this By-law or otherwise affected by by-law or may be authorized by resolution of Council. 6. Unless a power, duty, or function of Council has been expressly delegated by by- law or resolution, all the powers, duties and functions of Council remain with Council. 7. A delegation of power, duty, or function under any by-law or resolution to any member of Staff shall include a delegation to the CAO and to any member of Staff selected from time to time by the CAO, or delegate, to act in the capacity of the delegate in the delegate’s absence. 8. Staff with delegated signing power may use their signature in forms that may be written, printed, including by electronic means or measures, or otherwise reproduced. 9. In exercising any delegated power, the delegate shall ensure the following: (a) Any expenditure related to the matter shall have been provided for in the approved year’s budget or otherwise authorized by the Purchasing By-law or related policies). (b) The scope of the delegated authority shall not be exceeded by the delegate. (c) Compliance with all Corporate policies, including those related to insurance and risk management; and, (d) The consistent and equitable application of Council policies and guidelines. Page 48 Delegation of Authority By-law 2024-xxx Page 4 of 8 Further Delegation 10.Within each row of a table in Schedule “A” to this By-law, the delegated authority may be exercised by any such person(s) identified. However, the CAO is in effect the head of all Departments and may intervene, sub-delegate, or exercise any authority delegated in this By-law, where legally permitted to do so, if done in writing. 11.Where authority is delegated to a specific Staff member in this By-law, the authority may be further delegated by the authorized person to staff members within the applicable department, or division, provided that such delegation is legally permissible, authorized in writing and does not exceed the authority delegated by this By-law to the authorized person. Title Change and Conflicts 12.Where delegations of authority have been assigned to a Staff position, such authority includes the person temporarily acting in that position. 13.Where a delegation of power, duty or function is to a Staff position that no longer exists in title, those delegations shall be deemed transferred to the staff person who is assuming the responsibilities of the obsolete position. 14.The CAO is hereby authorized to resolve any conflict, or ambiguity, regarding the individual, or individuals, of the Municipality authorized to exercise any delegation. Emergency or Special Circumstances 15.In cases of emergency or special circumstances, as determined by the CAO and/or Mayor, where it is necessary to act within the normal mandate of a department, but such action is not strictly within the terms of a delegated authority, a Deputy CAO, in respect of their specific department, may take such action as necessary to rectify the situation. Any such action shall be reported immediately to the CAO, and to Council within a reasonable timeframe. Page 49 Delegation of Authority By-law 2024-xxx Page 5 of 8 Inconsistency 16. In the event of any contradiction between this By-law and any other Municipal by- law, this By-law prevails to the extent of the inconsistency. Validity of Actions Taken 17. Any variation or revocation of a delegated authority pursuant to this By-law shall have no effect on the validity of any action taken pursuant to a valid delegation of authority and occurring before the terms of such delegation were varied or revoked. Severability 18. If a court of competent jurisdiction declares any portion of this By-law to be illegal or unenforceable, that portion of this By-law shall be considered to be severed from the balance of the By-law, which shall continue to operate in full force and effect. Amendment of Previous By-law 19. By-law 2014-059, the Traffic By-law, Subsection 18.1(1) is amended to delete the following wording: “The Director may designate temporary permissive truck routes and temporary prohibitive no heavy truck routes and may erect official signs to those effects.” And replace it with the following wording: “The Delegation of Authority By-law indicates who may designate temporary permissive truck routes and temporary prohibitive no heavy truck routes and may erect official signs to those effects.” 20. By-law 2023-033, the Procedural By-law is amended to delete subsections 7.20.5 and 7.20.6 regarding authority to make minor deletions, additions, or changes to by-laws. Page 50 Delegation of Authority By-law 2024-xxx Page 6 of 8 21. By-law 2010-139, regarding Site Plan Control Agreements, be amended as follows: by replacing the words “to the Director of Planning and Development Services of the Municipality of Clarington” with the words “as indicated in the Delegation of Authority By-law” in section 7. by replacing the words “to the Manager of Development Review” with the words “as indicated in the Delegation of Authority By-law” in section 7. Repeal of By-laws 22. The following by-laws are hereby repealed, effective the date of passing of this by-law: • By-law 2021-005, delegating authority to exercise powers and functions of Council regarding applications, to the Assessment Review Board. • By-law 2003-031, delegating authority to make appeals to the Assessment Review Board. • By-law 2016-087, delegating authority to make decisions and hold meetings related taxes. • By-law 2021-004, delegating authority to make negotiate and execute tax extensions. • By-law 2005-225, appointing the former Manager of Municipal Law Enforcement. • By-law 90-193, appointing the head for the Municipal Freedom of Information and Protection to Privacy Act. • By-law 2020-045, delegating authority to establish retention periods. • By-law 2004-253, and its amendments thereto, regarding the provision of civil marriages. Page 51 Delegation of Authority By-law 2024-xxx Page 7 of 8 • By-law 2001-072, and its amendments thereto, regarding authority for “removal of holding” symbols, temporary use zoning by-law amendments, and housekeeping by-laws related to the Zoning By-law. • By-law 2011-119 delegating functions related to planning applications. • By-law 92-43 delegating authority to execute agreements related to conditions of Land Severances. Effectivity This by-law shall come into force and effect on the date of passing. _____________________________________ Adrian Foster, Mayor _____________________________________ June Gallagher, Municipal Clerk Page 52 Delegation of Authority By-law Table Schedule A (General) .................................................................................................... 1 Schedule B (CAO) .......................................................................................................... 4 Schedule C (PUB) .......................................................................................................... 7 Schedule D (FSD) ........................................................................................................ 10 Schedule E (LEG) ........................................................................................................ 15 Schedule F (PSD) ......................................................................................................... 23 Schedule A (General) Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Agreements – Acknowledgement of Status or Term Head of Department or designate To issue an acknowledgment of the status or term of agreements to which the Municipality is a party. Municipal Act, s. 23.1 NEW From the Region Agreements – Confidentiality Agreements Head of Department or designate To execute confidentiality agreements Municipal Act, s. 23.1 Recommended by the Deputy CAO/Solicitor NEW From the Region Agreements – Data Head of Department or designate To execute a data license or a data sharing agreement for the provision of data of the Municipality to others or for the provision of data from others to the Municipality. Municipal Act, s. 23.1 Accompanied by a data sharing agreement with for and content approved by the Deputy CAO/Solicitor, and the CAO NEW From the Region Agreements – Infrastructure to Cross Head of Department or designate To execute agreement with the applicable authority to permit Municipal infrastructure to cross a railway, provincial highway, pipeline, hydro-electric power corridor, watercourse, communication, transmission line or any other infrastructure as may be required. Municipal Act, s. 23.1 In a form approved by the Deputy CAO/Solicitor NEW From the Region Page 53 Delegation of Authority By-law Table Page 2 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Agreements – Federal and Provincial – Programs Head of Department or designate To execute an agreement with the Federal or Provincial government, a municipality, agency, institution, utility or community partner for a Municipal undertaking, program delivery and administration. Municipal Act, s. 23.1 Approval of the project or program by Council and/or monetary obligation captured in approved budget or in accordance with the Budget Policy. Recommended by the Deputy CAO/Solicitor NEW From the Region Agreements – First Nations, Metis and Inuit, or other interested parties Head of Department or designate To enter into any consultation agreements First Nations, Metis and Inuit, or other interested parties with regard to any Municipal undertaking. Municipal Act, s. 23.1 In a form approved by the Deputy CAO/Solicitor NEW From the Region Agreements – Fulfilled or Released Head of Department or designate To deem agreements fulfilled, or release conditions within an agreement where Municipal conditions have been fulfilled, or the agreement is no longer required. Municipal Act, s. 23.1 Recommended by the Deputy CAO/Solicitor NEW From the Region Agreements – Supply of Service or Program to Municipality Head of Department or designate To execute an agreement (or subsequent related agreements required to operationalize the master agreement) with a government agency or a non-profit agency, for consideration, for the supply of a service for an approved program of the Municipality. Municipal Act, s. 23.1 Approval of the project or program by Council and/or monetary obligation captured in approved budget or in accordance with the budget management policy. Agreement Reviewed by Risk Management for certificate of insurance and recommended by the Deputy CAO/Solicitor. NEW From the Region Flags and banners Mayor or Designate To approve or deny a request and determine the timeframe a flag may be displayed. Municipal Act, s. 23.1 Update Policy to refer to Delegation of Authority by-law Policy F105 – Flag Protocols Page 54 Delegation of Authority By-law Table Page 3 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Proclamations Mayor’s Office Upon receipt of a request for a proclamation, the request shall be forwarded to the Mayor’s Office for consideration. Municipal Act, s. 23.1 Update Policy to refer to Delegation of Authority by-law Policy F9 – Proclamations Policy – Occupational Health and Safety Mayor and CAO To sign the Occupational Health and Safety policy on behalf of the Municipality. Occupational Health and Safety Act (definition of owner) NEW Page 55 Delegation of Authority By-law Table Page 4 of 34 Schedule B (CAO) Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Administration – Telecom Protocol CAO and the Deputy CAO/Planning & Infrastructure That the Radiocommunication and Broadcasting Antenna Systems Protocol be delegated to the CAO and the Deputy CAO/Planning and Infrastructure Services. Municipal Act, s. 23.1 & 23.3(2) (Administrative) As per Resolution GG-199-23 and Report CAO-019-23. Report CAO-019-23 Agreements – Construction CAO or designate To execute any development agreements with an area municipality with respect to the construction of a Municipal undertaking. Municipal Act, s. 23.1 Recommended by the Deputy CAO/Solicitor and the Deputy CAO/Planning and Infrastructure. NEW From the Region Agreements – Cost Sharing Agreement CAO or designate To execute an agreement, including a cost sharing agreement with an area municipality, other government agency, railway or public utility regarding road construction and/or road maintenance pursuant to a project or program approved by Council. Municipal Act, s. 23.1 Approval of the project or program by Council and/or monetary obligation captured in approved budget. Recommended by the Deputy CAO/Solicitor and the Deputy CAO/Planning and Infrastructure. NEW From the Region Agreements – Obtain Funding – Some Cost CAO or designate To approve, amend, extend, and execute, contribution agreements, grant agreements, and one time project-based funding agreements where Clarington is the recipient, provided that such agreements are consistent with the departmental mandate and follow the restrictions stated in the “checks and balances”. Municipal Act, s. 23.1 (a) in accordance with applicable Municipal policies; (b) related to approved departmental programs and objectives; (c) within approved budget limits; and (d) contain appropriate insurance, termination, workplace safety, and indemnification provisions satisfactory to the Deputy CAO/Solicitor. NEW From Ottawa Page 56 Delegation of Authority By-law Table Page 5 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Agreement – Obtain Funding – No Cost CAO or Designate To approve, amend, extend, and execute agreements with the Federal or Provincial government, a municipality, agency, institution, utility, or community partner, provided that such agreements are consistent with the departmental mandate and are at no cost to the Municipality, with the exception of associated operational and administrative costs that are within approved budgets. Municipal Act, s. 23.1 & 23.3(2) (Administrative) Operational and Administrative Costs must be within approved budgets. NEW From Ottawa Agreements – Revenue Generating CAO or Designate To execute a revenue generating agreement or any agreement where the Municipality is providing a service to others for a charge. Special consideration for agreements covered under the Naming Rights, Sponsorship and Advertising Policy. Municipal Act, s. 23.1 Recommended by the Deputy CAO/Solicitor, and provided that the revenue being generated or charged by the Municipality does not exceed $250,000 per annum or prevailing budget policy limits. NEW From the Region Agreements – Temporary Sales Centre and Model Home Applications and Agreements CAO or designate To approve all Temporary Sales Centre and Model Homes Applications and Agreements and further to this the Mayor and Clerk be authorized to sign the Agreement, prior to, concurrent with and / or after the issuance of any full, partial, or conditional Building Permit related to the temporary sales facility structure(s) and/or Model Homes. Municipal Act, s. 23.1 Agreement – In a form approved by the Deputy CAO/Solicitor and Deputy CAO/Planning & Infrastructure Council will be advised electronically, prior to signing the Agreement. The Deputy CAO, or their designate, may forward controversial or significant applications for Council’s consideration and approval at their discretion. NEW From Scugog Page 57 Delegation of Authority By-law Table Page 6 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Budget - Transfers CAO or Designate To make budget transfers to effect changes resulting from new or amended legislation or regulations, additional unforeseen revenues, accounting standards or rules, program budgeting or to increase transparency and accountability and to make any necessary administrative budget re-allocation between program areas or budget lines to accommodate corporate reorganization or internal processes and procedures provided the re-allocation has no net change to the tax rate. Municipal Act, s. 23.1 & 23.3(2) (Administrative) Anything over $200,000 shall be reported to the appropriate Standing Committee on at least a quarterly basis. NEW From Ottawa and Whitby Provides flexibility to meet administrative needs, subject to budget policy and financial management policy. Claims – under $250,000 CAO or Designate To abandon or write-off all or any portion of a claim or debt in relation to any uninsured claim having a monetary value not greater than $250,000 exclusive of interest, provided that any action taken under this authority is subsequently reported to Council. Municipal Act, s. 23.1 NEW To provide for orderly and efficient resolution of legal claims Grants –Submit Applications to obtain funding CAO, or designate To submit grant applications to provincial and federal governments, agencies or funds and letters from Council or the Mayor necessary to apply for grant funding. Includes submission of reports after grants are received. Municipal Act, s. 23.1 Related to approved departmental programs and objectives. NEW From Scugog Human Resources – Union negotiations CAO Labour Negotiations Municipal Act, s. 23.1 NEW From Scugog Human Resources – Mileage Reimbursement CAO, or designate To adjust the mileage reimbursement rate as required and in accordance with the Canada Revenue Agency (CRA) rate. Municipal Act, s. 23.1 NEW From Scugog Purchasing - Vendor Disqualification CAO or designate To disqualify consultant, contractor or other supplier for a defined period or for an event-based matter. Municipal Act, s. 23.1 In accordance with the Purchasing By-law Subject to the application of any predefined Council approved criteria and as Recommended by the relevant Deputy CAO. NEW From the Region Provides ability to disqualify on a timely basis, subject to legislated and by-law requirements. Page 58 Delegation of Authority By-law Table Page 7 of 34 Schedule C (PUB) Public Services Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Agreements - Defibrillator Program Deputy CAO Public Services or designate of Community Services To approve subsequent renewals of agreements with Lakeridge Health that pertaining to the renewal of the Lakeridge Health Public Access Defibrillator Program Municipal Act, s. 23.1 Rescind Resolution #GG-077-23 (which states CAO) and replace with authority in the Delegation of Authority By-law Report CSD-001-23 and Resolution #GG-077-23 Agreements – Adopt-A-Road Deputy CAO Public Services or designate To enter into agreements with volunteer citizen groups for “Adopt- A-Road” litter removal programs. Municipal Act, s. 23.1 Recommended by the Deputy CAO/Solicitor NEW From the Region Agreements – Tiered Response Director of Emergency & Fire Services To determine the medical tiered response model that Clarington Emergency and Fire Services will follow. Municipal Act, s. 23.1 Fire Prevention and Protection Act NEW Agreements - Automatic Aid Director of Emergency & Fire Services To enter into automatic aid agreements to provide or receive initial or supplemental response to fires, rescues, emergencies as per the Fire Prevention Act, p.II. Municipal Act, s. 23.1 NEW From Scugog Fire Protection Services Director of Emergency & Fire Services To provide such fire protection services as it has been determined in accordance with municipal needs and circumstances Fire Prevention Act, p.II. Municipal Act, s. 23.1 NEW From Scugog Property – Interest and requests Deputy CAO Public Services or designate To advise of interest or non-interest in acquiring surplus land notifications circulated to the Municipality, including authority to request any partial transfers, easements, or permissions necessary to maintain current or future Municipal infrastructure or comments regarding proposed stop up and closure of local roads. Municipal Act, s. 23.1 Reviewed by all Deputy CAOs NEW From the Region Page 59 Delegation of Authority By-law Table Page 8 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Roads – Access agreements Deputy CAO Public Services or designate To execute an agreement for access to and/or from a Municipal road. Municipal Act, s. 23.1 NEW From the Region Roads – Close - Dangerous Situation Deputy CAO Public Services or designate To temporarily close any highway or any portion of a highway for any period due to a situation which would endanger traffic and/or the public. Municipal Act, s. 23.2(5) NEW From Scugog Roads – Close – Construction Deputy CAO Public Services or designate To temporarily close any highway or portion thereof for any period during the construction, repair or improvement initiated by the Municipality or by a utility company with statutory rights permitting occupancy on the highway; Municipal Act, s. 23.2(5) NEW From Scugog Roads – Close - Non-Critical Deputy CAO Public Services or designate To temporarily close a any highway or any portion of a highway for a social, recreational, community, athletic, or cinematographic purpose. Municipal Act, s. 23.2(5) Compliance with the Special Events By-law, including provision of insurance coverage and security deposit. NEW From the Region and Whitby Roads – Impose Conditions Deputy CAO Public Services or designate To impose conditions on the use of highways. Municipal Act, s. 23.1 NEW From Scugog Roads – Reduced Loads Deputy CAO Public Services or designate To establish reduced load periods on Municipal roads. Municipal Act, s. 23.1 NEW From Municipal Act, s. 23.1 the Region Roads - Speed Limits – Construction Zones Deputy CAO Public Services or designate To designate a highway, or a portion of a highway, under the Municipality’s jurisdiction a construction zone and require that it be marked with signs in accordance with regulations; and set a lower rate of speed for motor vehicle driven in the designated construction zone. Municipal Act, s. 23.1 NEW From Scugog and Region Traffic By-law – Truck Routes Deputy CAO, Planning & Infrastructure To designate temporary permissive truck routes and temporary prohibitive “no heavy truck routes” and may erect official signs to those effects as per the Traffic By-law. Municipal Act, s. 23.1 Amend By-law 2014- 059 to direct section 18.1(1) to the Delegation of Authority By-law Traffic By-law 2014-059 Page 60 Delegation of Authority By-law Table Page 9 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Traffic By-law – Permit for heavy vehicles Deputy CAO Public Services or designate To issue a permit for the moving of heavy vehicles, loads, objects, or structures in excess of the dimensional limits set out in Section 92 of the Highway Traffic Act, as may be amended from time to time, or the weight limits set out in Part VII of the said Act, upon any highway under the jurisdiction of the Corporation. Municipal Act, s. 23.1 NEW Traffic By-law 2014-059 From Whitby Trees on Municipal Property Deputy CAO Public Services or designate To arrange for, and permit the planting of, trees on Municipal property, including Municipal rights of way and easements for underground infrastructure. Municipal Act, s. 23.1 Municipal Act, s. 23.2(5)3iii Recommended by Deputy CAO/Planning and Infrastructure or designate. NEW From the Region Page 61 Delegation of Authority By-law Table Page 10 of 34 Schedule D (FSD) Financial Services Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Borrowing – Between DC Reserve Funds Deputy CAO/Treasurer or Designate To internally borrow, for cash flow purposes, between the Municipality’s Development Charge Reserve Funds, as required, to finance the Development Charge portion of Council-approved growth projects Municipal Act, s. 23.1 Must be related to a Council-approved growth project. NEW From Whitby Provides flexibility to meet cash flow needs from internal sources, borrowing is legislated and restricted. Budget Policy Authorities Deputy CAO/Treasurer Authorities as approved in Council adopted Budget Policy, including such items as: • Define current and capital projects and cost centres • Coordinate and implement financial service level indicators • Ensure necessary funding is available to finance the expenditures within the parameters of Council approvals • Monitor, and where necessary, report on material and non - material leases and update the calculation of the Municipal debt and financial obligation limit. Municipal Act, s. 23.1 NEW From the Region Insurance Contracts Deputy CAO/Treasurer To place or renew contracts for insurance when such contracts are outside of the general coverage as determined and provided by the Board of the Durham Municipal Insurance Pool (DMIP) in accordance with the Subscribers Agreement. Municipal Act, s. 23.1 NEW From Whitby Insurance requirements’ exceptions Deputy CAO/Treasurer To approve exceptions to Municipality’s minimum insurance requirements as set out and included in by-laws and/or policies enacted or approved by Council from time to time. Municipal Act, s. 23.1 NEW From Whitby Page 62 Delegation of Authority By-law Table Page 11 of 34 Loans under the Tile Drainage Act Deputy CAO/Treasurer To approve loans on behalf of the Municipality pursuant to Section 3 of the Tile Drainage Act for the purpose of constructing drainage works on the conditions set out in the “checks and balances” Municipal Act, s. 23.1 (a) the amount of monies loaned shall be in accordance with Section 7 of the Tile Drainage Act; (b) approval of the loan shall not result in an expenditure of Municipal funds; (c) the amount of the loan to each individual owner of agricultural land shall be in accordance with existing Provincial policies and guidelines and shall not exceed $50,000.00 in any one fiscal year or any other amount as may be determined by the Province of Ontario from time to time as the maximum amount of the loan available to an individual in one fiscal year; (d) the approval of loans shall be subject to a sufficient unused balance being available under the by-law authorizing the issuing of debentures by the Municipality pursuant to the Tile Drainage Act; and (e) the approval of loans shall be subject to funds being made available in the fiscal year for the purpose of the Tile Drainage Act. NEW From Ottawa The Municipality does not currently have any tile drainage loans and does not anticipate future loans. Delegation would provide for expeditious review and approval of loan which would facilitate economic development (farms) and support agriculture in Clarington. Page 63 Delegation of Authority By-law Table Page 12 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Reserves - Consolidate Discretionary Reserves Deputy CAO/Treasurer To consolidate discretionary reserves (i.e. for administrative purposes). Municipal Act, s. 23.1 & 23.3(2) (Administrative) NEW From Whitby Financial Management Policy will provide additional guidance, this provides the ability to improve financial flexibility for financial planning purposes. There are checks and balances and reporting in place. Taxes - Assessment Review – Appeals Assessment Review Board To exercise certain powers and functions of Council pursuant to Section 357(1)(d.1) of the Municipal Act regarding every application for cancellation, reduction, or refund of taxes due to sickness or extreme poverty. Note: Subsections 357 (6), (7), (8), (9) and (10) of said Act do not apply to such applications due to the delegation of authority. Municipal Act, s. 23.1 and s. 357(11) By-law 2021-005 to be repealed and replaced with direct authority in the Delegation of Authority by-law. By-law 2021-005 Delegated to ARB to remove staff and council from determining definition of “sickness”, ultimately ARB is final decider. Taxes - Assessment – To make appeals Deputy CAO/Treasurer or designate To appeal assessments to the Assessment Review Board on behalf of the Municipality of Clarington. Municipal Act, s. 23.1 By-law 2003-031 to be repealed and replaced with direct authority in the Delegation of Authority by-law. By-law 2003-031 Appeals have a set timeframe to file and this will expedite appeals on municipally-owned property. Page 64 Delegation of Authority By-law Table Page 13 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Taxes – Extension Agreement Deputy CAO/Treasurer or Designate To negotiate and execute tax extension agreements on behalf of the Municipality of Clarington, subject to limitations, as per Section 378 of the Municipal Act, 2001. Municipal Act, s. 23.1 & s. 386(5) a. The tax extension agreement must be requested by and entered into with any owner of the land, the spouse of any owner of the land, any mortgagee, any tenant in occupation of the land or any person the Treasurer is satisfied has an interest in the land, in accordance with Section 378 of the Municipal Act, 2001; b. The tax extension agreement must be compliant with the requirements of Section 378 of the Municipal Act, 2001; c. The tax extension agreement can only be entered into after a tax arrears certificate has been registered, and before the expiry of the one-year period; and d. Conforms to the Collection Policy guidelines Repeal By-law 2021- 004 and replaced with direct authority in the Delegation of Authority by-law. By-law 2021-004 Provides efficient ability to approve tax extensions for properties in the tax sale process. The time limits for approval are legislated, therefore delegating the authority ensures that agreements could be entered into up until the legislated date (benefits taxpayers). Page 65 Delegation of Authority By-law Table Page 14 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Taxes – holding meetings Deputy CAO/Treasurer or designate To make decisions and hold meetings under the following subsections of the Municipal Act: Subsections 356(1) & 356(4) = Division into parcels Subsections 357(1) & 357(5) = Cancellation, reduction, refund of taxes Subsections 358(1) & 358(9) = Overcharges Subsections 359(1) & 359(3) = Increase of taxes due to any undercharge caused by an error. Municipal Act, s. 23.1 & s. 386(5) By-law 2016-087 to be repealed and replaced with direct authority in the Delegation of Authority by-law. By-law 2016-087 These are routine in nature and provides for expeditious treatment of the tax decision and ultimately refund/collection of change in taxes. Revenue – Collect Accounts Deputy CAO/Treasurer or designate To extend payment terms on outstanding accounts or collect such accounts, including referring accounts for collection by agencies or use of legal proceedings, where it is deemed necessary. Municipal Act, s. 23.1 In accordance with Budget Policy and/or Purchasing By-law as applicable. NEW From the Region Provides for expeditious resolution payment agreements and are typically low-value amounts. Revenue – Interest on Temp Loans for Capital Deputy CAO/Treasurer To charge interest on temporary loans to external parties to finance capital projects. Municipal Act, s. 23.1 In accordance with Budget Policy and/or Purchasing By-law as applicable. NEW From the Region Increase Project – Additional Funds Deputy CAO/Treasurer To make capital budget funding adjustments to refinance any capital project or program to effect changes resulting from new funding sources. Municipal Act, s. 23.1 NEW From Ottawa Court Matters – Small Claims – Write Off Deputy CAO/Treasurer or designate To approve the cancellation of accounts and monies owed to the Municipality for amounts up to the prevailing limit for Small Claims Court actions. Municipal Act, s. 23.1 In accordance with Budget Policy and/or Purchasing By-law as applicable. NEW From the Region Agreements – Procurement Delegates as set out in Purchasing By- law To enter into contracts and agreements procured under the prevailing Purchasing By-Law. Municipal Act, s. 23.1 In accordance with Budget Policy and/or Purchasing By-law as applicable. NEW From the Region Letters of Credit – Developer Securities Deputy CAO/Treasurer To approve, accept, and release, letters of credit as security for performance and payments relating to development agreements. Municipal Act, s. 23.1 By written recommendation from Planning and Infrastructure Staff. CLARIFIED This was noted in Report FND-028- 20 but it is unclear where the original authority resides. The Region of Durham has the Commissioner of Finance with this authority. Page 66 Delegation of Authority By-law Table Page 15 of 34 Schedule E (LEG) Legislative Services Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Agreements – Confidentiality Deputy CAO/ Solicitor To execute confidentiality agreements. Municipal Act, s. 23.1 NEW For circumstances in which a non- disclosure agreement may be requested in connection with a commercial agreement or to settle a claim Agreements – Boundary Road Deputy CAO/Solicitor To enter into Boundary Road Agreements provided there is a proportional sharing of costs between adjacent municipalities. Municipal Act, s. 23.1 NEW Routine agreements to provide repairs and maintenance to roads having shared jurisdiction Agreements – Lease renewal/extensions Deputy CAO/ Solicitor or designate To execute lease renewal/extension agreements for community agencies that occupy space in a municipal facility. Municipal Act, s. 23.1 Subject to the limitations in Budget Policy and recommended by the Deputy CAO/Solicitor NEW From the Region Agreements – Licensing of Municipal Entities Deputy CAO/ Solicitor or designate To take measures on behalf of the Municipal Corporation to obtain or maintain copyright, trademark, patent, intellectual property, and personal property rights or interests. Municipal Act, s. 23.1 NEW To prevent the unauthorized use of the Municipality’s intellectual property Agreements – Trail License Deputy CAO/Solicitor To execute agreements with Ontario Power Generation related to the use of public recreational trails. Municipal Act, s. 23.1 Rescind Resolution #GG-201-23 Report LGS-033-23 Agreements – Parking on Private Property Deputy CAO/Solicitor or designate To approve the execution of agreements for parking enforcement on private property. The delegation also applies equally to any amendment or termination of such agreements. Municipal Act, s. 23.1 In a form approved by the Deputy CAO/Solicitor NEW To facilitate parking enforcement Agreements – Exchange/Release FOI information Deputy CAO/Solicitor or designate To execute an agreement for the exchange or release of information under the Municipal Freedom of Information and Protection of Privacy Act. Municipal Act, s. 23.1 Recommended by the Deputy CAO/Solicitor NEW From the Region Page 67 Delegation of Authority By-law Table Page 16 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Animals - Appoint – Livestock Valuer Deputy CAO/Solicitor or designate To appoint or withdraw the appointment, as the case may be, of municipal investigators (livestock valuers) for the Municipality as may be required for the purposes of the Ontario Wildlife Damage Compensation Program as per the Livestock, Poultry and Honey Bee Protection Act Livestock, Poultry and Honey Bee Protection Act NEW Report CLD-011-16 Animals - Appeals – Order to Restrain Hearings Deputy CAO/Solicitor or designate To adjudicate requests under section 105 of the Municipal Act, 2001 related to muzzling a dog Municipal Act, s. 23.1 and 23.5 (Delegations regarding hearings) In accordance with the rules outlined in the Municipal Act, s. 23.5 Clarification and Repeal By-law 2005- 225. This was noted in an appointment by-law for the previous Manager of MLE in By-law 2005-225, but was not repealed when we appointed Duncan Anderson. Animals – Shelter animals from other jurisdictions Deputy CAO/Solicitor or designate To have the discretion to shelter animals from other jurisdictions/organizations on an adhoc basis, or a longer term basis, with an agreement. Municipal Act, s. 23.1 NEW To ensure emergency, or cooperative, sheltering of animals, where necessary and able. Court Matters – Commence, Defend, Conduct under instructions Deputy CAO/Solicitor To commence, defend, or conduct any proceeding before any court, administrative tribunal or other decision -making or advisory body in accordance with instructions received from Municipal Council or from officers or employees of the Municipality having operational responsibility for the subject matter of such proceeding. Municipal Act, s. 23.1 NEW Required to protect the legal interests of the Municipality Court Matters - Commence, Defend, Conduct under own initiative (Non-POA) Deputy CAO/Solicitor To commence, defend, or conduct any proceeding before any court, administrative tribunal or other decision -making or advisory body on the Deputy CAO/Solicitor’s own initiative where necessary to protect, preserve or assert the best legal interests of the Municipal Corporation until such time as the matter can be reported to the appropriate instructing authority for consideration and direction. Municipal Act, s. 23.1 NEW Required to protect the legal interests of the Municipality Court Matters – Appeals (Non-POA) Deputy CAO/Solicitor To commence and conduct appeals of the decisions of courts, administrative tribunals, or other decision-making or advisory bodies; apply for standing; or make applications for judicial review of decisions; provided that any such measures undertaken shall be reported to Council as soon as reasonably practicable. Municipal Act, s. 23.1 NEW To respond to time sensitive legal proceedings Page 68 Delegation of Authority By-law Table Page 17 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Court Matters – Small Claims Deputy CAO/Solicitor To commence, defend, conduct, or settle any uninsured claim in the Ontario Small Claims Court on behalf of the Municipality. Municipal Act, s. 23.1 NEW For the efficient disposition of minor legal claims Court Matters - Commence, Defend, Conduct, Appeal (POA) Deputy CAO/Solicitor To commence, defend, conduct, or appeal any proceeding originating in the Provincial Offences Court or an applicable appellate court. Municipal Act, s. 23.1 NEW Required to prosecute Municipal By-laws and other Provincial offences Court Matters - Settlement of Claims under $250,000 Deputy CAO/Solicitor To settle uninsured claims (whether or not asserted in litigation), and authorize payment or acceptance of payment in settlement of such claims in an amount not to exceed $250,000, exclusive of interest, provided that any action taken under this authority is subsequently reported to Council. Municipal Act, s. 23.1 With concurrence of the CAO NEW To facilitate efficient resolution of legal claims Court Matters - Costs Deputy CAO/Solicitor To authorize the payment of any expenses, disbursements or costs reasonably incurred by or awarded against the Municipality in the course of a legal proceeding. Municipal Act, s. 23.1 NEW To comply with Court ordered payments, or reasonable legal costs Court Matters – Debt Enforcement Deputy CAO/Solicitor To take all steps reasonably necessary or desirable to enforce orders, decisions, awards, and judgements made in favour of the Municipality. Municipal Act, s. 23.1 NEW To recover costs Election Agreements Municipal Clerk To execute agreements and contracts for the purposes of securing equipment, facility rentals, purchasing of goods and other services in order to conduct Municipal and School Board Elections. Municipal Act, s. 23.1 NEW Purchasing By-law From Whitby Enforcement - Appoint private parking enforcement officers Deputy CAO/Solicitor or designate To appoint persons affiliated with private parking authorities, as per Subsection 15(1) of the Policy Services Act, to enforce the Clarington Traffic By-law. Municipal Act, s. 23.1 Change from “Municipal Clerk” to “Deputy CAO/Solicitor or designate” in the Delegation of Authority By-law and rescind the last paragraph of Resolution #C-190- 15 Report CLD-006-15 – private parking enforcement officers, Resolution #C-190-15 from June 1, 2015 Council minutes Employees: Report CLD-023-18 By-law 2018-100 Page 69 Delegation of Authority By-law Table Page 18 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Governance – Ombudsman Deputy CAO/Solicitor Designated as the head under the Ombudsman Act of Ontario s. 1.1(1)(a) 1.1(2)(a). Section 23.1 of the Municipal Act Ombudsman Act, s. 1.1(1)(a) All reports from the Ombudsman will be presented to Council at a General Governance Committee meeting. NEW To receive official notice from the Ombudsman of their intention to commence an investigation Legal Affairs - Reporting Deputy CAO/Solicitor To report to Municipal Council for the provision of legal advice and for obtaining instructions and direction touching upon the legal affairs of the Municipality. Municipal Act, s. 23.1 NEW This is part of the Municipal Solicitor’s job description Land – Agreement for Appraisal Deputy CAO/Solicitor To direct the preparation of appraisal reports for the acquisition, or disposition, of land by either internal, or external, resources as required and deemed appropriate. Municipal Act, s. 23.1 All appraisals to be completed by appraisers who hold the Accredited Appraiser Canadian Institute (AACI) or Certified Residential Appraiser (CRA) designations in good standing with the Appraisal Institute of Canada. NEW As needed to establish fair market value Land - Agreements - Encroachment Deputy CAO/Solicitor To approve and execute agreements for the encroachment of existing buildings onto Municipal land, including land that is a public highway or unopened road allowance. And, to execute an agreement to permit the Municipality to have access to, or to encroach on, land owned by others for Municipal purposes. And, to execute an agreement to permit access to, or an encroachment on, Municipal lands including rights-of-way, water and sanitary sewerage easements and facilities by third parties and to release those agreements as required. Municipal Act, s. 23.1 & 23.2(5) NEW To efficiently document minor property boundary issues Land – Agreements for entry onto land Deputy CAO/Solicitor To approve and execute agreements for temporary permission to enter onto Municipal land for durations not to exceed one year. Municipal Act, s. 23.1 NEW To facilitate temporary access to property Page 70 Delegation of Authority By-law Table Page 19 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Land –Agreements for extensions Deputy CAO/Solicitor To approve and execute agreements to extend the closing date of purchase and sale transactions. Municipal Act, s. 23.1 NEW Routine requirement of transactional real estate conveyancing Land –Easement Abandonment Deputy CAO/Solicitor To execute releases or notices of abandonment of easements owned by the Municipality over lands where those easements are no longer required for municipa l purposes subject to the checks and balances stated in the Delegation of Authority By-law. Municipal Act, s. 23.1 Where the easement was acquired by the Municipality: for no consideration, through the development process or otherwise, there will be no consideration payable for the release, with the exception of fees chargeable under by- law for processing the request. for consideration, the applicant seeking the release will pay whatever consideration was paid by the Municipality in acquiring the easement, together with the fees chargeable under by- law for processing the request. NEW Routine requirement of transactional real estate conveyancing Land –Easements to 3rd Parties Deputy CAO/Solicitor To convey easements and licences to third parties over Municipally-owned lands where the easement/licence rights are minor in nature or are for the purposes of providing a right of access for public utilities, telecommunications, municipal services or natural heritage protection purposes and the easement/licence will not substantially interfere with municipal purposes. Municipal Act, s. 23.1 For the purposes of this section, an easement which is minor in nature will have an appraised value of $5,000.00 or less. NEW To facilitate reasonable public use of Municipal lands Page 71 Delegation of Authority By-law Table Page 20 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Land - Agreements for purchase, sale or exchange (Capital Projects) Deputy CAO/Solicitor To approve and execute agreements of purchase and sale and all transfers for the purchase, sale, or exchange of land, including easements, for any approved capital project. Municipal Act, s. 23.1 NEW To facilitate the orderly completion of capital projects Land – Execute documents Deputy CAO/Solicitor or designate To approve and execute undertakings, certificates, declarations, and any other documents required for the completion of any transaction involving the purchase, sale, or exchange of any interest in land, including any documents required to be delivered under the applicable agreement of purchase and sale. Municipal Act, s. 23.1 The acquisition of land or land interests are included as part of a project or program approved by Council, and/or the monetary obligation captured in approved budget. The recording of any asset changes and financing confirmed by the Treasurer. NEW Routine requirement of transactional real estate conveyancing Land – Release Option Deputy CAO/Solicitor To release any option to repurchase, notice, agreement or restrictive covenant in favour of the Municipality, where the provision in favour of the Municipality has been satisfied, expired or is no longer required. Municipal Act, s. 23.1 NEW Routine requirement of transactional real estate conveyancing Land –Sale of interest Incidental to subdivision or condominium Deputy CAO/Solicitor To execute documents related to the conveyance of any interest in land incidental to a subdivision or condominium referenced within the subdivision or condominium agreements, and shall include, but not be limited to, the conveyance of easements and reserves or the release of or abandonment of easements. Municipal Act, s. 23.1 NEW Routine requirement of transactional real estate conveyancing and land development approval Land –under $25,000 Deputy CAO/Solicitor or designate To approve and execute agreements for the purchase and sale of land on behalf of the Municipality provided that the total consideration or estimate of the purchase and sale price is reasonable and does not exceed $25,000 Municipal Act, s. 23.1 NEW To facilitate land transactions of low monetary value Land Titles – Applications Deputy CAO/Solicitor To submit applications under the Land Titles Act or Registry Act in respect of lands owned by the Municipality. Municipal Act, s. 23.1 NEW Routine requirement of transactional real estate conveyancing Page 72 Delegation of Authority By-law Table Page 21 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Land Titles – Municipal Interest Deputy CAO/Solicitor To register any instrument on behalf of the Municipality against the title to the lands in which the Municipality has an interest. Municipal Act, s. 23.1 NEW Routine requirement of transactional real estate conveyancing Licensing – Public Event Designation Municipal Clerk To designate a “Public Event” pertaining to a Special Occasion Permit issued (i.e. an event of municipal significance) and authority to comment on a Liquor License Application, as per Section 24(4) of the Regulation 389/91 Liquor License Act. Municipal Act, s. 23.2(5)2 Based on the following guidelines adopted in Report CLD-028-12: • Historical Events (ie, Orono Fair) • Community Events (ie, an event that will promote neighbours meeting neighbours) • Economic Spinoffs (ie, Boots & Hearts, business grand openings) • Recognition Events. (ie, Sports Hall of Fame) • Raising Funds for Charity or Community Works (ie, Mayor's Golf Classic)" Explicitly provide delegation in the Delegation of Authority By-law Report CLD-028-12 – outlines the guidelines to be followed, but does not explicitly state the authority. Clerk’s Division Procedure P11-011 (Special Occasion Permits) Licensing – Commenting on Tailgate Events Municipal Clerk To determine whether it is appropriate to support a Tailgate Event on Municipal Property. Municipal Act, s. 23.1 In consultation with applicable Deputy CAOs. Explicitly provide delegation in the Delegation of Authority By-law Report CLD-020-19 Tailgate Events on Municipal Property”. Marriages Municipal Clerk, or designate To provide civil marriages, for the Municipality of Clarington, as per the Marriage Act, and Regulations, in the Clarington Council Chambers, or otherwise, at the discretion of the Municipal Clerk. Municipal Act, s. 23.1 Repeal By-law 2004- 253, and amendments, and replace it with Delegation of Authority By-law. By-law 2004-253 Page 73 Delegation of Authority By-law Table Page 22 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Records Management - MFIPPA Head Municipal Clerk To act as head of the municipality for the purposes of the Municipal Freedom of Information and Protection to Privacy Act. Subsection 3(3) of MFFIPPA and Subsection 23.1 of the Municipal Act Currently the Mayor; change to the Municipal Clerk and Repeal By-law 90- 193 By-law 90-193 Records Management - By- laws – minor corrections Municipal Clerk To make minor deletions, additions, or other administrative or typographical changes to any by-law to ensure that the correct and complete implementation of the actions of Council form the subject matter of the by-law. Municipal Act, s. 23.1 & 23.3(2) (Administrative) If there is a substantive error in an approved by-law, this is not a reconsideration and Staff shall bring it to the attention of Council at its earliest convenience for consideration. Amend Procedural By-law to move wording to Delegation of Authority By-law (subsection 7.20.5 & 7.20.6). Procedural By-law Records Management - By- laws – Exhausted Authority Municipal Clerk To repeal by-laws that are expired, have been replaced, or have otherwise ceased in their purpose Municipal Act, s. 23.1 Consultation with the Deputy CAO/Municipal Solicitor and (for planning-related by- laws) Deputy CAO/Planning and Infrastucture. NEW To eliminate obsolete by-laws. Records Management - Retention Schedule Municipal Clerk To establish or amend retention periods for all municipal records in the Records Retention Schedule as per Subsection 254(1) of the Municipal Act, 2001 (records), Subsection 255(3) of the Municipal Act, 2001 (retention), and Subsection 255(2) of the Municipal Act, 2001 (destruction). Upon the Municipal Clerk being satisfied that the relevant retention period established has expired, and that no reason exists for further retention, the Municipal Clerk may order the records to be destroyed, or to be set aside for permanent retention in an archival facility designated by the Municipal Clerk, as per Subsection 255(2) of the Municipal Act, 2001 (destruction). Municipal Act, s. 23.1 & 254(1) & 255(3) & 255(2) Unless minor in nature, proposed revisions to records classifications to be reviewed by relevant department Staff and/or Legal Division prior to approval by the Municipal Clerk. Repeal By-law 2020- 045 and replace with Delegation of Authority By-law. By-law 2020-045 Page 74 Delegation of Authority By-law Table Page 23 of 34 Schedule F (PSD) Planning and Infrastructure Services Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Agreements – Releases Deputy CAO, Planning & Infrastructure To release agreements where development has not proceeded o if imposed or required in satisfaction of any condition of approval under the Planning Act or Condominium Act, in connection with the development of land. Municipal Act, s. 23.1 Releases to be in a form as approved by the Deputy CAO/Solicitor. Repeal by-law 2011- 119 and replace with the Delegation of Authority By-law By-law 2011-119 arising out of Report PSD-102-11. Agreements – Subdivisions, Condos, Land Division, Removal of Part Lot Control, Site Plans, Rezoning Deputy CAO, Planning & Infrastructure To execute agreements imposed, or required, in satisfaction of any condition of approval under the Planning Act in connection with the development of land such as subdivisions, plans of condominium, land divisions, removal of part lot control, site plans and rezoning. Municipal Act, s. 23.1 Agreements to be in a form as approved by the Deputy CAO/Solicitor. If second signature is required – it would be Legal Services. Repeal by-law 2011- 119 and replace with the Delegation of Authority By-law. Change from Municipal Clerk By-law 2011-119 arising out of Report PSD-102-11. In the current by-law it is both the “Director and the Municipal Clerk”. Agreements - Approve and execute CIP agreements Deputy CAO, Planning & Infrastructure To approve and execute agreements under the Community Improvement Programs and Section 28 of the Planning Act. Municipal Act, s. 23.1 Implements CIP program requirements. Annual reporting to Council. Repeal by-law 2011- 119 and replace with the Delegation of Authority By-law By-law 2011-119 arising out of Report PSD-102-11. Agreement - Land Conveyance – Parkland Deputy CAO, Planning & Infrastructure To approve, as a condition of development, the conveyance of land, cash-in-lieu of conveyance of parkland, or combination thereof for park or other recreational purposes whichever option, in the opinion of the Deputy CAO, Planning & Infrastructure, is appropriate and in compliance with the applicable Official Plan policies and Municipal policies and by-laws. Municipal Act, s. 23.1 In accordance with the Parkland and Open Space Dedication By- law. NEW By-law 2022-043 From Ottawa Agreement - Land Conveyance – Highway Deputy CAO, Planning & Infrastructure or Designate To request the conveyance of land for a highway widening and/or for a reserve as a condition of development approval , as per the Planning Act, subsections 41(7)(a)(1), 41(8)(a)(1) and 41(9) Municipal Act, s. 23.1 Record in asset management system even if transaction is non-monetary and consistent with Planning Act, subsections 41(7)(a)(1), 41(8)(a)(1) and 41(9). NEW From the Region of Durham Page 75 Delegation of Authority By-law Table Page 24 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Agreement – Extension of Development Agreements Deputy CAO, Planning & Infrastructure To execute extension of development agreements where the agreement is not being altered in a significant way. Municipal Act, s. 23.1 Agreements to be in a form as approved by the Deputy CAO/Solicitor. NEW From Whitby and Scugog Agreements – Minor Variance Deputy CAO, Planning & Infrastructure or designate To execute on behalf of the Corporation of the Municipality of Clarington agreements required to implement the conditions of approval imposed by the Committee of Adjustment under Section 45 of the Planning Act. Planning Act, Sections 5 & 66 Repeal By-law 95-23 and replace with Delegation of Authority By-law Change from “Mayor and Clerk” to “Deputy CAO, Planning & Infrastructure or designate” By-law 95-23 Report PD-15-95 Agreements – Release for non- Site Plan Control Deputy CAO, Planning & Infrastructure to approve the release of agreements, including maintenance and liability agreements and encroachment agreements entered into as a condition of subdivision, condominium, cash-in-lieu of parking, demolition control, or zoning approvals, or heritage agreements, as part of the compliance or enforcement process subject to the following conditions: an owner or authorized agent or bona fide purchaser or authorized agent or mortgagee has requested the release in writing; the requirements of the agreement have been fulfilled; all parties having jurisdiction over the terms or conditions of the agreement have agreed to its release; and the applicant for the release agrees to assume all costs associated with the release of this agreement. Municipal Act, s. 23.1 NEW From Ottawa Agreement – Sewage System Management Agreement with Region Deputy CAO, Planning & Infrastructure To execute subsequent renewals of the Sewage System Management Agreement with the Regional Municipality of Durham. Municipal Act, s. 23.1 NEW From Whitby Page 76 Delegation of Authority By-law Table Page 25 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Agreements - Site Plan Control Deputy CAO, Planning & Infrastructure To execute any agreement with the Municipality dealing with ensuring the provision of any or all of the facilities, works or matters referred to in Section 41(7)(a) and the maintenance thereof referred to in Section 41(7)(b) or with the provision and approval of the plans and drawings pursuant to Section 41(4) of the Planning Act, as may be required to be made by the owner of the land with the Municipality as a condition of the approval of the plans and drawings referred to in Section 41(4) of the Planning Act R.S.O. 1990, as amended. Municipal Act, s. 23.1 Amend Section 7 of By-law 2010-139 to refer to Delegation of Authority by-law Report PSD-058-16 By-law 2010-139 as amended by By-law 2016-080. Agreement – Utilities or Telecommunicatio ns for Municipal Property Deputy CAO, Planning & Infrastructure To execute an agreement respecting utilities or telecommunications required to service a Municipal property or facility. Municipal Act, s. 23.1 For any agreement outside of the online application, such additional agreement is to be reviewed by the Treasurer for billing arrangements and Recommended by Legal Services. NEW From the Region of Durham Apartments-in- House Official Registrar Deputy CAO, Planning & Infrastructure or designate To be the Official Registrar for Apartments-in-Houses Municipal Act, s. 23.1 CLARIFICATION Report PSD-058-16 notes that it was delegated from the Director to the Manager. By-law 97-77 Consolidated. defines the Registrar as the “Director of Designate” Page 77 Delegation of Authority By-law Table Page 26 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale By-laws – Minor Nature Planning Deputy CAO, Planning & Infrastructure Arising out of OPA 132, delegation of authority for the following additional functions, under Section 34 of the Planning Act: Removal of Holding “H” Symbols. Temporary Use Zoning By-law Amendments; and Housekeeping By-laws for the purposes of making clerical or other changes to assist in the interpretation of a Zoning By-law. Section 39.2 of the Planning Act The Planning Act requires that the Official Plan provide policies to specify the types of by-laws that may be delegated. The Planning Act also provides that the delegation may be subject to conditions set out by Council, and that Council may withdraw this authority at any time through a by-law, including in anticipation of a by-law for which a final decision has not yet been made. The delegation does not:  Alter any notice or public meeting requirements;  Limit appeal rights; or  Change the requirement for planning decisions to be consistent with the Provincial Policy Statement and to conform or not conflict with provincial plans. To repeal by-law 2001-072, and the amendment, 2023- 014 + replace with the Delegation of Authority By-law. Report PDS-008-23 By-law 2023-014 amends By-law 2001-072 Page 78 Delegation of Authority By-law Table Page 27 of 34 Heritage Conservation Districts Deputy CAO, Planning & Infrastructure The following authority with respect to properties that are designated under Part V of the Ontario Heritage Act: to receive and issue notices of receipt for heritage permit applications that are received by the Municipality pursuant to Section 42 (3) of the Ontario Heritage Act; to prescribe the required contents of an application under Section 42(1), pursuant to Section 42(2.2) of the Ontario Heritage Act; to enter into agreements with property owners to waive or extend the 90-day timeline prescribed in Section 42(4),for applications made under Section 42(1) of the Ontario Heritage Act; to approve heritage permit applications under Section 42(1) of the Ontario Heritage Act that meet the definition of an emergency application; to approve heritage permit applications under Section 42(1) of the Ontario Heritage Act which include the following classes of alterations: restoration or preservation projects including projects funded through the Heritage Grant Program for Building Restoration, alterations to accessory or outbuildings such as changes to barns, garages, and sheds that meet the requirements of the applicable heritage conservation district plan or guidelines, landscape alterations including but not limited to tree removal, new hard or soft landscaping and new driveways where the proposed alterations meet the requirements of the applicable heritage conservation district plan or guidelines, alterations that do not adversely impact the heritage attributes of the property or the heritage conservation district and that meet the requirements of the applicable heritage conservation district plan or guidelines; additions that meet both of the following criteria: 1.the size is less than 30% of the gross floor area of the existing building; and 2.the proposal meets the heritage conservation district guidelines or heritage conservation district plan. additions that do not exceed 50% of the existing gross floor area that create new residential unit(s) and meet the policies and guidelines of the applicable heritage conservation district plan; Ontario Heritage Act, s. 42(16) The authority does not include the authority to approve applications with conditions. The authority does not include the power to refuse an application. NEW From Ottawa Page 79 Delegation of Authority By-law Table Page 28 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale construction of detached accessory structures that meet the requirements of the applicable heritage conservation district plan or guidelines; demolition of detached accessory structures including barns, outbuildings, and garages where the demolition does not impact the cultural heritage value of the property or district and meets the applicable heritage conservation district plan or guidelines; demolition of additions where the demolition does not impact the cultural heritage value of the property or heritage conservation district and meets the applicable heritage conservation district plan or guidelines; and extension or re-issuance of heritage permits previously considered by the Heritage Committee and issued by Council where the proposal and the relevant policy framework are substantially unchanged since the initial approval Page 80 Delegation of Authority By-law Table Page 29 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Heritage Properties – Various actions Deputy CAO, Planning & Infrastructure The following authority with respect to properties designated under Part IV of the Ontario Heritage Act (OHA): (a) to issue notices of inclusion in the Register according to Section 27(5) and (6) of the OHA; (b) to process notices of objection under Section 27(8) of the OHA; (c) to receive notices of intention to demolish non -designated buildings or structures listed on the Register pursuant to Section 27(9) of the OHA; (d) to request plans and information pursuant to Section 27(11) required as part of the 60 days’ notice required under Section 27(9) of the OHA; (e) to enter into agreements with property owners to waive or extend the 90-day timeline for issuance of a Notice of Intention to Designate after the occurrence of a prescribed event, as described in Ontario Regulation 385/21 –General - Section 1; (f) to process Notices of Objection under Section 29(6) of the OHA and ensure consideration by Council within statutory timelines; (g) to enter into agreements with property owners to waive or extend the 120-day statutory timeline for the passage of a designation by-law under Section 29(8) of the OHA, and as described in Ontario Regulation385/21 – General - Section 2; (h) to enter into agreements with property owners to waive or extend the 90-day timeline prescribed under Sections33(6) and 34 (6), pursuant to Sections 33(7) and 34 (4.3), of the OHA; (i) to prescribe additional materials and information required for applications under Sections 33(1) and 34(1),pursuant to Section 33(3) and 34(3) of the OHA; (j) to receive and issue notices of complete or incomplete application for heritage permits pursuant to Section 33 and Section 34 of the OHA; (k) to approve heritage permit applications under Section 33 of the OHA that meet the definition of an emergency application. Ontario Heritage Act, section 33(15) Section 33(15) requires consultation with the Heritage Committee prior to delegation: The power to consent to alterations to property under this section may be delegated by by-law by the council of a municipality to an employee or official of the municipality if the council has established a municipal heritage committee and has consulted with the committee prior to delegating the power. NEW From Ottawa Page 81 Delegation of Authority By-law Table Page 30 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Heritage – Minor Alterations Deputy CAO, Planning & Infrastructure To approve heritage permit applications relating to minor alterations which include the following classes of alterations: (i) restoration or preservation projects including projects funded through the Heritage Grant Program for Building Restoration; (ii) changes or renovations to additions or outbuildings such as changes to barns, garages, or modern additions not identified in the Statement of Reason for Designation or the Statement of Cultural Heritage Value; (iii) landscape alterations including but not limited to tree removal, new hard landscaping, new soft landscaping, and new driveways where the proposal does not impact the heritage attributes of the designated property; (iv) alterations that do not adversely impact or remove the heritage attributes of a property; (v) additions that meet both of the following criteria: 1. the size is less than 30 per cent of the gross floor area of the existing building and, 2. the proposal does not adversely impact the heritage attributes of the property as defined in the Statement of Cultural Heritage Value or Statement of Reason for Designation; (vi) additions that do not exceed 50% of the gross floor area of the existing building that create new residential unit(s), as defined by the Zoning By- law as amended, and do not adversely impact the cultural heritage value or attributes of the property as defined in the Statement of Cultural Heritage Value; (vii) construction of detached accessory structures, which do not impact the heritage attributes of the property; (viii) demolition of detached accessory structures including barns, outbuildings, and garages where the demolition does not impact the cultural heritage value of the property; (ix) demolition of additions not identified in the Statement of Reason for Designation or the Statement of Cultural Heritage Value; and (x) extension or re-issuance of heritage permits previously considered by the Heritage Committee and issued by Council where the proposal and the relevant policy framework are substantially unchanged since the initial approval Municipal Act, s. 23.1 The authority does not include the authority to approve applications with conditions. The authority does not include the power to refuse an application. NEW From Ottawa Page 82 Delegation of Authority By-law Table Page 31 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Heritage - Approve minor heritage permits Deputy CAO, Planning & Infrastructure To issue minor Heritage Permits for alterations and additions, as described in the Beech Avenue Heritage Conservation District Plan. Municipal Act, s. 23.1 Excludes construction of new buildings, additions to buildings, demolition of all or a portion of a building, relocation of a building on a property, relocation of a building outside of the district, site and park functions at Clarington Beech Centre and streetscape improvements. Requires periodic reporting to Council as necessary. Repeal by-law 2011- 119 and replace with the Delegation of Authority By-law By-law 2011-119 arising out of Report PSD-102-11. Permits - Tree Deputy CAO, Planning & Infrastructure To receive applications and the required fees, and to issue permits and to attach conditions thereto in accordance with the Tree By-law Municipal Act, s. 23.1 Amend to redirect to Delegation of authority By-law. Section 4.7.5 of the Municipality of Clarington Official Plan Section 5.1.1 of the Woodlot Preservation By-law (aka The Tree By-law), By-law 97-35, as amended Planning Applications - Complete Deputy CAO, Planning & Infrastructure or Designate To give notice of complete applications to the prescribed persons and public bodies, in the prescribed manner and accompanied by the prescribed information; and make the prescribed information and material available to the public, as per S. 22(6.4), 34(10.7) and 51(19.4) of the Planning Act. Municipal Act, s. 23.1 Notice provided to Members of Council Repeal by-law 2011- 119 and replace with the Delegation of Authority By-law By-law 2011-119 arising out of Report PSD-102-11. Planning – Applications Approve - Condominium applications Deputy CAO, Planning & Infrastructure To approve descriptions under the Condominium Act: 1) To endorse public meeting notifications 2) To endorse the Notices of Decision of Council with respect to draft approval of plans of subdivision / plans of condominium and to endorse the draft approved plans, subject to the conditions imposed by Council 3) To endorse the Notices of Decision of Council with respect to all other Planning Act applications. S.51,51.1 and 51.2 Planning Act Section 9 of the Condominium Act Section 9(10) of the Condominium Act and Reg. 544/06 of the Planning Act Consistent with approved site plan and Zoning By-law. Periodic reporting to Council Repeal by-law 2011- 119 and replace with the Delegation of Authority By-law By-law 2011-119 arising out of Report PSD-102-11. Page 83 Delegation of Authority By-law Table Page 32 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Planning Application - Fees Deputy CAO, Planning & Infrastructure or Designate To refund all, or part, of a planning application fee to facilitate the withdrawal of a Municipal planning application where planning merits cannot be adequately justified, or to correct an error in the original fee calculation. Municipal Act, s. 23.1 NEW From the Region of Durham Planning Application – Municipal Applicant Deputy CAO, Planning & Infrastructure or Designate To prepare and file an application, submission, declaration, representation and execute any agreement imposed or required in the satisfaction of any condition of approval under the Planning Act or the Building Code Act, 1992 in connection with the development or redevelopment of Municipal property or building, where the Municipality is the applicant. Municipal Act, s. 23.1 Project has been approved by Council. NEW From the Region of Durham Planning Applications – Notice Deputy CAO, Planning & Infrastructure or Designate To provide notice that the information and material required under any application under the Planning Act has either been provided or not provided and that the application is deemed to be complete or incomplete, as the case may be, as per S. 22(6.1 ), 34(10.4) and 51(19.1) of the Planning Act. Municipal Act, s. 23.1 Repeal by-law 2011- 119 and replace with the Delegation of Authority By-law By-law 2011-119 arising out of Report PSD-102-11. Planning - Applications- Part Lot Control – Applications and By-laws Deputy CAO, Planning & Infrastructure To approve applications, and by-laws, for the removal of part lot control, as per S. 50 (7) of the Planning Act. Municipal Act, s. 23.1 Removal of Part Lot Control to be presented to next Council meeting for adoption. Periodic reporting to Council Repeal by-law 2011- 119 and replace with the Delegation of Authority By-law By-law 2011-119 arising out of Report PSD-102-11. Report FND-028-20 Although the approval had been previously given, the delegation for passing the by-law had not. Planning Applications - Refuse inactive Deputy CAO, Planning & Infrastructure or Designate To refuse an application made under the Planning Act which is inactive for over one year. Municipal Act, s. 23.1 Applicant must be notified and provided 60 days to respond with no objection. Requires periodic reporting to Council. Repeal by-law 2011- 119 and replace with the Delegation of Authority By-law By-law 2011-119 arising out of Report PSD-102-11. Page 84 Delegation of Authority By-law Table Page 33 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Planning Applications - Subdivision Applications - Approve - Plan of Subdivision Deputy CAO, Planning & Infrastructure or designate To approve plans of subdivision under the Planning Act: 1) To endorse public meeting notifications 2) To endorse the Notices of Decision of Council with respect to draft approval of plans of subdivision / plans of condominium and to endorse the draft approved plans, subject to the conditions imposed by Council. 3) To endorse the Notices of Decision of Council with respect to all other Planning Act applications. Sections 23.1 to 23.5 of the Municipal Act Section 51.2(1) of the Planning Act This authority extends only in these matters in respect of which Council adopted procedures. To repeal by-law 2001-072, and the amendment, 2023- 014 and replace with the Delegation of Authority By-law By-law 2001-072 By-law 2023-014 Planning Applications – Withdrawals Deputy CAO, Planning & Infrastructure or designate To sign for development application withdrawals Municipal Act, s. 23.1 CLARIFIED This was noted in Report FND-028- 20 but it is unclear where the original authority resides. Site Plan Control - Agreements – Release for Site Plan Control Deputy CAO, Planning & Infrastructure To approve the release of agreements, including maintenance and liability agreements and encroachment agreements entered into as a condition of site plan control where: an owner or authorized agent or bona fide purchaser or authorized agent or mortgagee has requested the release in writing; the requirements of the agreement have been fulfilled; all parties having jurisdiction over the terms or conditions of the agreement have agreed to the release; in the case of residential developments governed by site plan control agreements, all financial securities have been released; in the case of non-residential developments governed by site plan control agreements, the release of the agreement is no earlier than five (5) years following the release of all financial securities; and the costs associated with the registration of the release of the agreement are incurred by the applicant. Municipal Act, s. 23.1 NEW From Ottawa Page 85 Delegation of Authority By-law Table Page 34 of 34 Short Description of Matter Delegate Specific Delegation of Authority Council’s Authority to Delegate Checks and Balances Recommended Action Notes and Rationale Site Plan Control Area Deputy CAO, Planning & Infrastructure The powers and authority of Council under Section 41 of the Planning Act, except the authority to define any class or classes of development as mentioned in Section 41(13)(a) Municipal Act, s. 23.1 Prior to stamping drawings, written concurrence will be provided by the Manager of Development Engineering. This will be done in consultation with the Director of Public Works as required. Amend Section 6 of By-law 2010-139 to refer to Delegation of Authority by-law By-law 2010-139 As amended by By-law 2020-080 arising out of Report PSD-048-20 By-law 90-130 Page 86 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 3, 2024 Report Number: LGS-027-24 Authored by: Colin Lyon, Associate Solicitor Submitted By: Rob Maciver, Deputy CAO/Solicitor, Legislative Services Reviewed By: Mary-Anne Dempster, CAO By-law Number: Resolution Number: File Number: RC.B.01.10.1 Report Subject: Surplus Declaration of 238 King Street East, Bowmanville Recommendations: 1. That Report LGS-027-24 be received; 2. That the unopened road allowance at 238 King Street East described in Report LGS-027-24 be declared surplus and conditionally approved for sale to the Applicant; 3. That the Applicant shall pay the cost to prepare and register a reference plan for the property to be conveyed; 4. That the Applicant shall pay the cost for the Municipality to obtain an appraisal of the property to be conveyed; 5. 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 any other terms considered necessary by the Deputy CAO/Solicitor; 6. That the Applicant shall pay the non-refundable processing fee; 7. 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; and 8. That all interested parties listed in Report LGS-027-24 and any delegations be advised of Council’s decision. Page 87 Municipality of Clarington Page 2 Report LGS-027-24 Report Overview This is a report that recommends the sale of a portion of an unopened municipal road allowance located at 238 King Street East in Bowmanville to the Bowmanville Professional Building Limited (the “Applicant”). 1. Background 1.1 The applicant has applied to purchase the unopened road allowance located at 238 King Street East in Bowmanville (the “Road Allowance”). 1.2 The dimensions of the Road Allowance are approximately 15.5 metres by 2 0.1 metres. 1.3 The Applicant’s objective is to allow for the reorientation of the one-way easterly ingress to their parking lot to create a two-way ingress/egress. 2. Next Steps 2.1 The Applicant has submitted the required application together with the initial application fee, and Staff have made a preliminary determination that the Road Allowance is surplus to the needs of the Municipality and recommend that it be sold. 2.2 Upon successful fulfilment of the conditions stipulated in the recommendations of this Report, the by-law to permanently close the Road Allowance will be presented to Council for enactment, and the sale will be finalized. 3. Financial Considerations 3.1 If approved, the proceeds of the sale will be deposited to the appropriate account as determined by the Finance and Technology Department. 4. Concurrence This report has been reviewed by the Deputy CAO, Planning and Infrastructure who concurs with the recommendations. 5. Conclusion It is respectfully recommended that Council approve the sale of the above noted property to the Applicant in accordance with the Council approved Road Closure and Conveyance Policy CP-004. Page 88 Municipality of Clarington Page 3 Report LGS-027-24 Staff Contact: Colin Lyon, Associate Solicitor, 905-623-3379 ext. 2027 or clyon@clarington.net. Attachments: Interested Parties: The following interested parties will be notified of Council's decision: Bowmanville Professional Building Limited Page 89 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 3, 2024 Report Number: FSD-026-24 Authored by: Sandra McKee, Acting Purchasing Manager Submitted By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology Reviewed By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology By-law Number: Resolution Number: File Number: CL2024-16 Report Subject: Maintenance Hole and Catch Basin Repair Recommendations: 1. That Report FSD-026-24, and any related delegations or communication items, be received; 2. That Defina Haulage Ltd. with a total estimated bid amount of $182,059 (Net HST Rebate) for the initial one-year term and an estimated five-year contract value of $800,265 (Net HST Rebate) being the lowest compliant bidder meeting all t erms, conditions and specifications of CL2024-16 be awarded the contract for Maintenance Hole and Catch Basin Repair; 3. That pending satisfactory performance and price, the Purchasing Manager, in consultation with the Director of Public Works, be given the authority to extend the contract for this service for up to four additional one-year terms; 4. That the total estimated funds required for this project for the first-year term in the amount of $200,265 (Net HST Rebate) includes $182,059 (Net HST Rebate) for the maintenance hole and catch basin repair and contingency in the amount of $18,206 be funded by the Municipality as provided. The estimated funds required for the second, third, fourth and fifth-year terms are included in future budget accounts. Description Account Number Amount CATCH BASIN/SEWER MTNCE - CONTRACT 100-36-380-10245-7163 $200,265 5. That all interested parties listed in Report FSD-026-24, and any delegations be advised of Council’s decision. Page 90 Municipality of Clarington Page 2 Report FSD-026-24 Report Overview To request authorization from Council to award tender CL2024 -16 for Maintenance Hole and Catch Basin Repair. 1. Background 1.1 Tender specifications for Maintenance Hole and Catch Basin Repair were prepared by the Public Works Division and provided to the Purchasing Services Division. 1.2 Tender CL2024-16 was issued by the Purchasing Services Division and advertised electronically on the Municipality’s website. 1.3 Eighteen plan takers downloaded the tender document. 2. Analysis 2.1 The tender closed on April 23, 2024. 2.2 Four bids were received in response to the tender call. 2.3 The bids were reviewed and tabulated by the Purchasing Services Division (see Attachment 1) and deemed compliant. The results were forwarded to the Public Works Division for their review and consideration. 2.4 After review and analysis by the Public Works Division and the Purchasing Services Division, it was mutually agreed that the low-compliant bidder, Defina Haulage Ltd. be recommended for award of tender CL2024-16. 2.5 Defina Haulage Ltd. has not worked for the Municipality in the past; however, references were checked and came back satisfactory. 3. Financial Considerations 3.1 The annual funding required for the first-year term in the estimated amount of $200,265 (Net HST Rebate) will be funded by the Municipality as provided. Future budget accounts include the funds required for the second, third, fourth, and fifth -year term terms and requirements will be adjusted to stay within the approved annual budget of $150,000. Page 91 Municipality of Clarington Page 3 Report FSD-026-24 Description Account Number Amount CATCH BASIN/SEWER MTNCE - CONTRACT 100-36-380-10245-7163 $200,265 3.2 Pricing submitted for Maintenance Hole and Catch Basin Repair is to remain firm for the first year of the contract. For future contract years, the unit prices would be adjusted on the anniversary date of the contract award by the annual percentage change in the most recent issuance of the Consumer Price Index (CPI), All Items, Ontario, as published by Statistics Canada and the pricing will remain firm for the contract year. 3.3 The total estimated contract value for one year plus four optional additional years is approximately $800,265 (Net HST Rebate). 3.4 Queries with respect to the department’s needs should be referred to the Director of Public Works. 4. Strategic Plan Not Applicable. 5. Concurrence This report has been reviewed by the Deputy CAO, Public Services and the Director of Public Works who concur with the recommendations. 6. Conclusion It is respectfully recommended that Defina Haulage Ltd. being the lowest compliant bidder, be awarded the contract for Maintenance Hole and Catch Basin Repair in accordance with the terms and conditions of Tender CL2024-16. Staff Contact: Sandra McKee, Acting Purchasing Manager, 905-623-3379 Ext. 2210 or smckee@clarington.net. Attachments: Attachment 1 - Summary of Bid Results Interested Parties: List of Interested Parties available from Department. Page 92 Municipality of Clarington Page 4 Report FSD-026-24 Attachment 1 to Report FSD-026-24 Municipality of Clarington Summary of Bid Results Tender CL2024-16 Maintenance Hole and Catch Basin Repair Bidder One-Year Total Bid (Net HST Rebate) Potential Five-Year Total Bid (Net HST Rebate) Defina Haulage Ltd. $182,058.82 $800,264.70 Drocon Inc. 279,158.21 907,074.03 GIP Paving Inc. 323,357.66 955,693.43 Aqua Tech Solutions Inc. 433,752.00 1,077,127.20 Page 93 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 3, 2024 Report Number: FSD-027-24 Authored by: Trevor Pinn Submitted By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology Reviewed By: Mary-Anne Dempster, CAO Resolution Number: By-law Number: File Number: Report Subject: Financial Policies Update Recommendations: 1. That Report FSD-027-24, and any related delegations or communication items, be received; 2. That the Draft “Financial Management Policy”, as Attachment 1, be approved; 3. That the Revised “Multi-Year Budget Policy” as Attachment 2, be approved; 4. That the Revised “Development Charges Interest Policy” (formerly G17) as Attachment 3, be approved 5. That the Revised “Strategic Asset Management Policy”, as Attachment 4, be approved; 6. That Council approved policies G5 “Capital Project Overexpenditure”, G15 “Surplus/Deficit Allocation Policy”, G16 “Bank Signing Authority”, “Debt Management Policy” be rescinded; 7. That By-law 97-203 be repealed as it relates to TR-86-97 “Accounts Receivable Collections Policy (Overdue Accounts); and 8. That all interested parties listed in Report FSD-027-24, and any delegations be advised of Council’s decision. Page 94 Municipality of Clarington Page 2 Report FSD-027-24 Report Overview In 2023, the Municipality revised and modernized its policy governance structure. As a result, several former policies will be changed to management directives as they were operational in nature. Staff took this opportunity to consolidate certain Council approved policies into a Financial Management Policy which will be the core source of strategic direction for financial management. Management directives will be created in the future to enhance and follow the policy direction of the Financial Management Policy. 1. Background 1.1 In 2023, the Municipality adopted Policy CP-001 Clarington Policy System. This system created Council Policies, Management Directives and Standard Operating Procedures. 1.2 Finance and Technology Staff have reviewed existing policies and are updating former policies to meet the new guideline, or are recommending rescinding policies as they meet the definition of management directives. 1.3 Management Directives will be created for the following areas as they are more operational in nature and overall policy is covered in the proposed new “Financial Management Policy”: Former Policy Number Name How Dealt With G1 Accounts Receivable Management Directive G2 Refunds Management Directive G3 Emergency Cash Disbursement Management Directive G4 Capitalization Management Directive G5 Capital Project Overexpenditure Financial Management Policy and Management Directive Page 95 Municipality of Clarington Page 3 Report FSD-027-24 Former Policy Number Name How Dealt With G7 Tax Bill Insert Management Directive G8 Administration of Contracts Management Directive G10 Purchasing Card (“PCARD”) Cardholder Management Directive G11 Donation Receipting Referenced in Financial Management Policy, details in Management Directive G12 Petty Cash Management Directive G14 Budget Policy Rescind as a separate Multi- Year Budget Policy adopted, applicable sections added to Financial Management Policy G15 Surplus/Deficit Allocation Policy Consolidated into Financial Management Policy G16 Bank Signing Authority Policy Consolidated into Financial Management Policy with management directives to be created as necessary FSD-042-21 Debt Policy Consolidated into Financial Management Policy with management directives to be created as necessary Page 96 Municipality of Clarington Page 4 Report FSD-027-24 2. Financial Management Policy 2.1 Staff looked at other municipalities, including the City of Toronto, for suggestions on a consolidated financial management policy. It was felt that one source of financial management policy would be more efficient for Council, the public and staff rather than having to research multiple different policies. 2.2 Staff will prepare management directives from the overall Financial Management Policy to provide administrative clarity as required. This will reduce some of the former policies to more strategic council decisions rather than operational decisions. 2.3 The proposed policy has sections on the following areas, where there were previous separate policies those policies were used to draft the applicable section of the Financial Management Policy: 2.3.1. Budget (references the multi-year budget policy but also includes requirements under legislation, and interim authorities from the former Budget Policy) 2.3.2. Spending authority – Operating (from the former Budget Policy) 2.3.3. Spending authority- Capital (modified from Budget Policy and Capital Overexpenditure. Authority for dealing with overexpenditures is simplified) 2.3.4. Contingency Funds (new) 2.3.5. Surplus/Deficit Allocation (from the former policy) 2.3.6. Reserve and Reserve Funds (new) 2.3.7. Investments (refers to legislated required policy) 2.3.8. Debt (from the former policy) 2.3.9. Financial Reporting (new) 2.3.10. Financial Administration (new) 2.3.11. Donations (new) 2.3.12. Bank Signing Authority (from former policy but reduced in scope) 2.4 The new section for reserve and reserve funds provides how reserve and reserve funds will be prepared, requires the Deputy CAO/Treasurer to establish target ranges, Page 97 Municipality of Clarington Page 5 Report FSD-027-24 requires that funds that were budgeted but not required be returned to the reserve fund, and allows for interfund loans between reserve funds. 2.5 Staff are recommending removing the self-imposed annual debt limit, as a management directive staff will establish controls for prioritizing and assessing the appropriate use of debt. This is more of a financial planning strategy and will be presented to Council in future AMPs and Long-Term Financial Plans. 2.6 A Financial Reporting section was added which requires the Deputy CAO/Treasurer to prepare the financial report in accordance with GAAP. Management directives for individual standards or processes will be established as required to document reporting choices as required. 2.7 A Financial Administration section was included which states that the responsibility for developing administrative directives and procedures to ensure prudent financial management and internal controls rests with the Deputy CAO/Treasurer. 2.8 The above authority will be used to establish internal contr ols, or make administrative accounting choices such as, for example, the estimated useful life of assets. 2.9 Donations is a new section and provides policy that the Municipality will accept donations and that tax receipting shall be in accordance with the CRA requirements. An existing administrative policy will be converted to a management directive, this is in accordance with CRA guidelines. 2.10 Bank signing authority policy has been converted to a section which requires two signatures for all external payments. Explicit positions have not been included as titles could change. A management directive will be created to identify the required signors, provided that at least two sign on external payments. 3. Multi-Year Budget Policy 3.1 Subsequent to the adoption of the Multi-Year Budget Policy, the Province of Ontario provided Clarington with “Strong Mayor” powers. The revised policy as included in Attachment #2, has been revised to reflect the change in responsibilities as a result of the legislative change. There are also minor housekeeping changes to reflect changes in titles as a result of recent organizational changes. 4. Development Charges Interest Policy 4.1 The Development Charges Interest Policy was introduced through Report FND -047-20 and was approved through Resolution #GG-452-20 on November 30, 2020 with an effective date of January 1, 2021. Page 98 Municipality of Clarington Page 6 Report FSD-027-24 4.2 The policy set an interest rate for deferred development charges resulting from changes introduced through the More Homes, More Choice Act, 2019. This act pr ovided the mandatory deferral of development charges for rental housing and institutional development (six installments over five years) and non -profit housing developments (21 payments over 20 years). 4.3 The policy also set an interest rate for the period of time that DCs were “frozen” after the application date for a maximum of two years (this is now proposed to be 18 months through Bill 185). 4.4 Certain projects were approved by Council to be a 0% interest rate (non-profit housing through the Region of Durham, hospices). Development charges was set based on the Bank of Canada rate + 2 per cent. 4.5 Since the time of the passing of the policy, the Province has set a prescribed rate of interest. The policy amendments propose added wording to set the rate at the Province’s prescribed rate, and if there is no prescribed rate the existing rate structure is maintained. The policy also clarifies a reference of when interest is charged to include all of section 4, as was the intent. The policy amendment also follows the new policy template and adds roles and responsibilities as a result. Types of development that have since been made DC exempt have also been removed. 5. Strategic Asset Management Policy 5.1 The Infrastructure for Jobs and Prosperity Act, 2015 includes the requirements for municipalities in Ontario to meet certain asset management planning requirements. Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure outlines several requirements for municipalities in detail, one is the requirement for a strategic asset management policy. 5.2 The Municipality approved their Strategic Asset Management Policy in 2019 and is required to review it at least every five years. The attached revised policy meets this requirement. The changes to the policy reflect the change in the policy format template adopted in 2023, and title changes for applicable staff. There were no substantive changes to the policy. 6. Management Directives 6.1 With the adoption of the new policy framework in 2023, there are several former council policies and corporate policies which will be converted to management directives. These were highlighted in the table above. Page 99 Municipality of Clarington Page 7 Report FSD-027-24 6.2 Management directives will be written to comply with the Co uncil adopted policies as well as the Council adopted Long-term Financial Planning Framework. Management directives are operational in nature and may include items such as estimated useful life of assets, internal controls among other items. In some cases, the management directive will be the former policy (either administrative or council approved) in the new format. 7. Financial Considerations 7.1 Not Applicable. 8. Strategic Plan 8.1 Not applicable. 9. Concurrence Not Applicable. 10. Conclusion It is respectfully recommended that the attached policies be approved and the former policies be repealed/rescinded as necessary. Staff Contact: Trevor Pinn, CPA, CA Deputy CAO/Treasurer, 905-623-3379 x2602 or tpinn@clarington.net. Attachments: Attachment 1 – Draft Financial Management Policy Attachment 2 – Revised Multi-Year Budget Policy Attachment 3 – Revised Development Charges Interest Policy Attachment 4 – Revised Strategic Asset Management Policy Interested Parties: There are no interested parties to be notified of Council's decision. Page 100 Attachment 1 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 1 of 13 Number: CP-00# Title: Financial Control Type: Financial Management Sub-type: Administrative Owner: Finance and Technology Services Finance 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: 1.1. The Municipality of Clarington (Municipality) is committed to responsible financial management of spending, revenue generation, and program delivery in accordance with the Municipal Act. 1.2. The Municipal Act, 2001 regulates the activities and governance of municipalities in Ontario. Financial management principles are identified throughout the Act, overall, this policy is governed by legislation approved by the Province. 2. Purpose: 2.1. This policy documents and establishes sound governance and strong internal controls for financial management and ensures compliance with applicable legislation. 3. Scope: 3.1. This applies to all departments, divisions, boards, agencies, and committees of the Municipality forming the consolidated entity. 4. Definitions: 4.1. Annual Repayment Limit - The calculation provided annually to a municipality by the Ministry of Municipal Affairs and Housing, or successor, that determines Page 101 Attachment 1 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 2 of 13 the maximum amount of additional debt servicing costs that a municipality can undertake or guarantee without seeking approval of the Province of Ontario. 4.2. Asset Management Plan - A plan developed for the management of assets that combines multi -disciplinary management techniques over the life cycle of the asset in the most cost- effective manner to provide a specific level of service. 4.3. Capital Infrastructure Gap Reserve Fund – A reserve fund created to help mitigate the infrastructure gap without impacting the tax levy. It is funded by continual contributions from any annual surplus funds. 4.4. Capital Financing - A generic term for the financing of capital assets using reserve and reserve funds 4.5. Debentures- A debt instrument issued by a municipal corporation and secured by municipal general fund revenues. They are formal written obligations to repay specific sums on certain dates. In our two-tiered Regional government, the regional municipality issues debentures on behalf of the lower tier. 4.6. Debt - An obligation for the repayment of money. For Ontario municipalities, long-term debt normally consists of debentures; short-term debt normally consists of notes or loans from financial institutions. Inter-fund borrowing, and debentures issued to Infrastructure Ontario are also considered to be debt. 4.7. Deficit – When, at year end, there is an excess of expenditures over revenues in the Operating Budget. 4.8. Department Head – Department Heads are the following positions – Deputy CAO, Legislative Services/Solicitor, Deputy CAO, Finance and Technology/Treasurer, Deputy CAO, Planning and Infrastructure and Deputy CAO, Public Services. 4.9. Deputy CAO/Treasurer – The full title of the position is Deputy CAO, Finance and Technology Department/Treasurer. For brevity in the document, the title is shown ass Deputy CAO/Treasurer. 4.10. Division Head – Division Heads refer to the Director, or equivalent, who is responsible for the operations of a division within a department. Page 102 Attachment 1 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 3 of 13 4.11. Inter-fund Borrowing – under which financial resources are internally transferred from one fund to another with the intent to repay the borrowed funds plus applicable interest. If inter-fund borrowing is long-term in nature it shall be reported to the Region of Durham. 4.12. Internal controls - are policies and procedures implemented by an organization to ensure their financial reports are reliable, operations are efficient, and activities are compliant with applicable laws and regulations. 4.13. Long-term debt- A term longer than one fiscal year. If the Municipality incurs debt that will not be repaid within a fiscal year, this borrowing must go through the Region of Durham. 4.14. Reserves - are an allocation of accumulated surpluses that make no reference to any specific asset and does not require the physical segregation of money. Reserves are part of the general fund and therefore do not earn interest like a reserve fund 4.15. Reserve Funds - are segregated monies restricted to meet a specific purpose and are established either through by-law of the Municipality, legislation or agreement. Reserve funds are generally disbursed to fund long-term financial strategies and capital projects. Reserve funds receive an annual interest allocation based on the average annual balance. There are two types of reserve funds, obligatory and discretionary. 4.16. Obligatory Reserve Funds are reserve funds established by legislation or agreement for a unique purpose on behalf of the contributor. Examples are Development Charges and Federal Gas Tax funds. 4.17. Discretionary Reserve Funds are reserve funds established for a specific purpose by Council for future expenditures. Examples are Rate Stabilization and Strategic Capital. 4.18. Surplus – When, at year-end, there is an excess of revenues over expenditures in the Operating Budget. 4.19. Short-term debt- A term equal to or less than one fiscal year. This type of borrowing does not require upper tier approval. 4.20. Sinking Fund – A segregated pool of funds managed by the Region of Durham for which an estimated amount in each year, with interest Page 103 Attachment 1 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 4 of 13 compounded annually, will be sufficient to pay the principal of the related Sinking Fund Debentures at maturity. 4.21. Retirement Fund – A segregated pool of funds managed by the Region of Durham for a class of Debentures other than a sinking fund or term debenture. In each year the fund must contain an amount equal to or gr eater than the amount required for the repayment of the principal of specific Debentures in that year if the principal had been payable in equal annual instalments and the Debentures had been issued for the maximum period authorized by the Municipality for the repayment of the Debt for which the Debentures were issued. 5. Policy Requirements: Budget 5.1. The Municipality will prepare a multi-year budget in accordance with CP-002 Multi-Year Budget Policy. 5.2. The Municipality will prepare and adopt, as required by the Municipal Act, 2001, a budget which is balanced and in accordance with O.Reg.284/09 Budget Matters-Expenses. 5.3. The following authority is provided, in adopting the total of all sums required during the year for the operating purposes of the Municipality, shall, in accordance with the Municipal Act, 2001, determine the operating budget required to provide for the sums required for every purpose and the sums required for the various categories of purposes: 5.3.1. Prior to February 1, the authority for establishing the budget shall be with the Mayor, or designate, in accordance with Part VI.1 of the Municipal Act, 2001 5.3.2. If the Mayor has not exercised their power in accordance with the above, Council may present and adopt a budget. 5.4. Departments are authorized to expend funds at the previous years’ service levels, unless otherwise by Council until the current operating budget has been adopted. New programming or service enhancements are not to be initiated prior to the operating budget adopted. Page 104 Attachment 1 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 5 of 13 5.5. When authority has not been granted through the Operating Budget for an expenditure, a department shall not expend funds unless, 5.5.1. A report was prepared by the Director or Deputy CAO requiring the funds and approve outside of the budget process by Council. 5.5.2. An emergency occurs requiring the immediate use of funds approved by the CAO in accordance with the Municipality’s Purchasing By-Law. 5.6. The Mayor, or Council as appropriate, in adopting the capital budget, shall determine the sums required for each capital project listed in the capital budget, and each sum provided for a capital project shall be a capital account. 5.7. The Deputy CAO/Treasurer shall certify that funding for the capital projects in the capital budget is within the Municipality’s updated debt and financial obligation limit. Spending Authority - Operating 5.8. No expenditure shall be made and no account shall be paid by or on behalf of the Municipality, except with Council approval and in accordance with this Policy. 5.9. No commitment shall be made except in accordance with the provisions of this Policy and the provisions of the Purchasing Policy. 5.10. Each Department and Division are responsible for monitoring their budget for both revenue and expenditures on a regular basis. Departments may not knowingly exceed their budget allotment. 5.11. The Municipality no longer allows petty cash funds. The exception would be those set up for corporate emergencies including the Emergency Operations Centre. 5.12. Department Heads are authorized to adjust their budgets during the year as follows: 5.12.1. Increases to any line items are to be offset by a corresponding decrease in another item or through enhanced revenues that will be realized by the additional expenditure. Page 105 Attachment 1 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 6 of 13 5.12.2. Accounts that are used to offset another account must be of a related service either by division or at the discretion of the Treasurer. 5.12.3. Notwithstanding the source of funding, all expenditures shall be recorded in their appropriate account for reporting purposes. Spending Authority – Capital 5.13. The capital budget adopted by Council establishes the spending authority for a capital project. 5.14. Division Heads shall ensure that expenditures do not exceed the approved budget. 5.15. Department Heads shall report any anticipated over-expenditure to the Deputy CAO/Treasurer as soon as the potential over-expenditure is known. 5.16. Over-expenditures on a capital project. 5.16.1. A Department Head is authorized to approve additional expenditures where costs for a capital project increase to the extent that they exceed the original funding approval for the capital project by the lesser of 10 per cent or $250,000. 5.16.2. Such funding required shall be from another capital project within the department, or from additional sources of funding (such as additional grants, fundraising, etc). 5.16.3. Where any impacted project includes the use restricted funds, such as development charges, the Department Head shall seek the concurrence of the Treasurer. Contingency Funds 5.17. Contingency Funds – A contingency fund is the money approved in the operating budget to provide funding for one-time expenditures that were not known or expected at the time the operating budget was adopted. 5.18. Contingency funds may only be used for: Page 106 Attachment 1 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 7 of 13 5.19. onetime non-recurring costs that were not identified at the time the operating budget was adopted; and 5.20. unforeseen expenditures resulting from economic, climatic, in-year legislative changes from senior levels of government and legal settlements. 5.21. The funds shall not be used for programs, and approval must be obtained by Deputy CAO/Treasurer for any use of the contingency fund. Surplus/Deficit Allocation 5.22. In the event of an annual operating budget surplus the Deputy CAO/Treasurer is authorized to distribute the surplus to appropriate reserve and reserve funds as follows: 5.22.1. Transfer any unspent winter control budget to the Winter Control Stabilization Reserve Fund. 5.22.2. Transfer carry over amounts to be utilized in the following fiscal year to the General Capital Reserve, this shall only be used for year-end timing purposes. 5.22.3. Transfer any restricted funds to the appropriate reserve or reserve fund, this may include grants which have not fully been utilized or development charges collected and not utilized during the year. 5.22.4. Transfer up to 30 per cent of the discretionary operating surplus to the Rate Stabilization Reserve Fund. 5.22.5. Transfer up to 30 per cent of any discretionary operating surplus to the Capital Infrastructure Gap Reserve Fund. 5.22.6. Transfer up to 40 per cent of any discretionary operating surplus to any reserve or reserve funds operating below their minimum target balances as outlined in the Reserve and Reserve Fund Policy 5.22.7. If surplus funds remain after this prescribed distribution, the remaining amount shall be added evenly to the Rate Stabilization Reserve Fund and Infrastructure Gap Reserve Fund. Page 107 Attachment 1 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 8 of 13 5.23. In the event of an annual budget deficit the Deputy CAO/Treasurer is authorized to use their discretion to manage the operating deficiency and to fund the deficit in the same manner as identified in paragraph 5.22. 5.24. The Deputy CAO/Treasurer shall report to Council, the surplus or deficit amount and the distribution of the funds as part of the annual financial reporting process. Reserves and Reserve Funds 5.25. The creation (or amendment) of a reserve or reserve fund will be through the budget process, by Council resolution, as stipulated in agreements, or as required by legislation. 5.26. The Deputy CAO/Treasurer shall establish target ranges for the prudent financial management of reserve funds. The targets shall consider the purpose of the fund, financial plans and forecasts and economic factors as appropriate. 5.27. The Deputy CAO/Treasurer will regularly monitor the reserve and reserve fund balances to ensure the Municipality is positioned to meet its long-term financial commitments and respond to financial opportunities that may arise. 5.28. Council will authorize all appropriations to reserves and reserve funds either through a resolution or an adopted budget. 5.29. Any funds budgeted for a capital project or specific program that are unexpended shall be automatically returned to the appropriate reserve fund in accordance to the timelines established in this Policy. 5.30. Reserve funds relating to the Strategic Capital Reserve Fund (previously Host Community Trust Funds) and funds from municipal utility investments will be a separate Council approved policy. 5.31. Council may authorize lending between reserve funds in order to provide for short-term deficits with interim financing. Lending between reserve funds requires a strong business plan and the recommendation of the Deputy CAO/Treasurer. 5.32. If the intention or objective for a discretionary reserve or reserve fund is fulfilled and deemed no longer necessary then the Deputy CAO/Treasurer shall prepare a report to Council. The report will detail the complete objectives Page 108 Attachment 1 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 9 of 13 fulfilled by the reserve or reserve fund, the dispersal of any remaining funds and any by-laws required to amend or repeal to complete process. 5.33. Reserve Funds will be invested in accordance with the Municipality’s Investment Policy, any interest earned shall be allocated proportionately. 5.34. Council shall receive estimated reserve and reserve fund balances, projected contributions and planned expenditure withdrawals presented with the annual budget update. Annually, the Treasurer will provide updated balances and forecasts for the reserve funds and reserves based on completion of the Municipality’s audited financial statements. 5.35. No expenditure shall be made and no account shall be paid by or on behalf of the Municipality, except with Council approval and in accordance with this Policy. Investments 5.36. The Municipality shall invest under the Prudent Investor Standard in accordance with the CP-003 Investment Policy (Legal List). 5.37. Funds deemed by the Treasurer to be required immediately shall be be invested in accordance with the CP-003 Investment Policy- Eligible List. Debt 5.38. Council may, where it is deemed in the best interest of taxpayers, approve the issuance of debt for its own purposes. 5.39. Prior to the issuance of any new debentures or the incurrence of additional debt, consideration will be given to its impact on future ratepayers in order to achieve an appropriate balance between capital financing and other forms of funding while ensuring that the taxpayer benefitting from the use of the asset is the one paying for it (known as inter-generational equity). 5.40. The primary considerations for capital financing and debt program, in order of importance, shall be to: 1) Adhere to statutory requirements; 2) Ensure long-term financial flexibility; Page 109 Attachment 1 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 10 of 13 3) Limit financial risk exposure; and 4) Minimize the cost of long-term financing 5.41. The Municipality will not exceed the legislated Annual Repayment Limit as established by the Province of Ontario. 5.42. The term of temporary or short-term borrowing for operating purposes will not exceed the current fiscal year. 5.43. The term of the capital financing will not exceed the lessor of 40 years, or the useful life of the underlying asset being financed. 5.44. Long-term debt (borrowing) will only be issued for capital projects owned by the Municipality of Clarington. 5.45. As part of the annual budget, a Long-term Debt Forecast and Financial Obligation Management Plan that includes projectio ns for each year over a multi-year period of estimated long-term debt and financial obligation payments compared to the annual debt repayment limit. 5.46. The Deputy CAO/Treasurer will present Council a statement indicating that the debt management plan is in compliance with this policy. Financial Reporting 5.47. The Deputy CAO/Treasurer is responsible for the preparation of annual financial statements as required by the Municipal Act and in accordance with established Generally Accepted Accounting Principles (GAAP). Financial Administration 5.48. The Deputy CAO/Treasurer is responsible for, and shall be required to develop the administrative directives and procedures to ensure prudent financial management and internal control framework for the Municipality. 5.49. Management Directives for the purpose of responsible financial administration and controls. This will include but is not limited to the following: a) Cash handling Page 110 Attachment 1 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 11 of 13 b) Payments and purchasing cards c) Invoicing and Accounts Receivable d) Interest charges e) Refunds f) Taxation g) Spending Approval limits Donations 5.50. The Municipality may accept donations for its own purposes, including Boards of Council. Such donations may be for the municipality's services, programs, or capital projects but may not specifically benefit an identifiable individual. 5.51. The tax receipting for donations shall be in accordance with Canada Revenue Agency (CRA) requirements and set out in a management directive to the satisfaction of the Deputy CAO/Treasurer. Bank Signing Authority 5.52. All external disbursements of the Municipality require two signatures or electronic approvals from the appropriately designated persons . 5.53. The appointment of authorized signers shall be established through a management directive to the satisfaction of the Deputy CAO/Treasurer. 5.54. Each board, committee, agency within the reporting requirements of the Municipality shall establish a procedure for the approval of disbursements which shall include a minimum dual signature requirement for all disbursements. Review 5.55. The Deputy CAO/Treasurer shall undertake a comprehensive review of this Policy at least once per term of Council. Page 111 Attachment 1 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 12 of 13 6. Roles and Responsibilities: 6.1. Council is responsible for: 6.1.1 Establishing the Municipality’s philosophy through the adaption of this policy. 6.2. Chief Administrative Officer (CAO) is responsible for: 6.2.1. Approving management directives that establish the operation framework of financial management. 6.3. Deputy CAO/Treasurer is responsible for: 6.3.1. Ensure the development of management directives in support of this policy. 6.3.2. Ensuring that this policy and associated management directives are adhered to. 6.4. Deputy CAOs, Directors and Managers are responsible for the following within their scope of authority: 6.4.1. Ensuring staff are trained on this policy. 6.5. All Staff are responsible for: 6.5.1. Ensuring compliance with the Finance Management Policy. 7. Related Documents: 7.1. CP-002 Multi-Year Budget Policy 7.2. CP-005 User Fee Revenue Policy 7.3. CP-003 Investment Policy (Legal List) 7.4. CP-TBD Investment Policy (Prudent Investor) 7.5. Long-term Financial Planning Strategy 7.6. Delegation of Authority By-law Page 112 Attachment 1 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 13 of 13 8. Inquiries: 8.1. Deputy CAO/Treasurer 8.2. Manager, Accounting Services/Deputy Treasurer 8.3. Manager, Financial Planning/Deputy Treasurer 9. Revision History: Date Description of Changes Approved By Page 113 Attachment 2 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 1 of 9 Number: CP-002# Title: Multi Year Budget Policy Type: Financial Management Sub-type: Click or tap here to enter text. Owner: Finance and Technology Financial Planning Approved By: Council Approval Date: May 1, 2023 Effective Date: May 1, 2023 Revised Date: June 3, 2024 Applicable to: All Staff 1. Legislative or Administrative Authority: This policy was developed in accordance with Section 291 of the Municipal Act, 2001, which authorizes a municipality to prepare and adopt a budget covering a period of two to five years in the first year to which the budget applies or in the year immediately preceding the first year to which the budget applies. 2. Purpose: The purpose of this policy is to define the procedures for multiple -year budget approvals. The policy defines the budget planning timeframe as a minimum four-year outlook to support stable and efficient financial management and predictable taxation and user rates for stakeholders. 3. Scope: The scope of multi-year budgeting, including both operating and capital, extends to all Municipality of Clarington departments and boards and applies to both tax-supported as well as user fee-supported budgets. 4. Definitions: 4.1. Administrative Changes – Adjustments in future years of a Multi-year Budget categorized as “housekeeping” items whereby budget funds can be reallocated within Services to realign the existing Operating Budget and have a net zero impact to the tax or user rates levied. Capital budget “housekeeping” items are Page 114 Attachment 2 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 2 of 9 defined as items less than $100,000 having a net zero impact, are similar projects with similar funding and can be realigned with the approved Multi-year Budget period. 4.2. Boards and Agencies – Groups outside the Corporation, typically (although not always) funded by the property tax base, which provide specific and/or specialized services to the community in Clarington. 4.3. Budget – An estimated financial plan of revenues and expenditures for a defined period. 4.4. Budget Year – The period January 1 to December 31, as defined in the Municipal Act, 2001. 4.5. Capital Budget – A budget that funds new infrastructure projects as well as expands and maintains existing infrastructure. 4.6. Initial Budget – The first budget in the multi-year budget cycle. 4.7. Material Changes – An individual item or summation of Operating Budget items that would have an annual impact of 0.50% to the property tax levy and payment in lieu of taxes to be levied in a future years’ Budget. Material changes may result in a change to the approved levy or user rates. A capital project or summation of Capital Budget projects that would have an annual impact greater than $500,000. 4.8. Multi-year Budget – Approval of a four-year operating and capital budget 4.9. Multi-year Budget Policy – Refers to this Policy. 4.10. Municipal Act – Refers to the Municipal Act, 2001, as amended. 4.11. Municipality of Clarington – The Corporation of the Municipality of Clarington 4.12. Net Budget – The net budget is the cost to deliver Clarington’s programs and services, after accounting for all non-tax/non-rate revenues and subsidies received. This is the portion of the budget paid for through property taxes. 4.13. Operating Budget – A budget that funds the day-to-day operations of the Municipality. Page 115 Attachment 2 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 3 of 9 4.14. Reportable Changes – An individual Operating Budget item that would have an annual impact between 0.05% and 0.49% to the property tax change and payment in lieu of taxes to be levied in a future years’ Budget and is managed within the existing approved budget, with no change to the approved levy increase or user rate increase. A capital project adjustment with a net $0 impact and less than $500,000. 4.15. Senior Leadership Team – The senior management team of the Municipality consisting of the Chief Administrative Officer (CAO) and the heads of the Municipality’s departments. 4.16. Service – An organizational unit of the Municipality, possibly a department or division, which is functionally unique its delivery of service. 4.17. Treasurer – The individual appointed by the Municipality as Treasurer in accordance with the Municipal Act, 2001. 5. Policy Requirements: General 5.1. A Multi-Year Budget is developed covering a four-year period beginning in the second year of a new Council term. 5.2. Annual updates for years two and three will be brought forward for Council consideration during the remaining Council term. The first year of a new Council term will reconfirm the fourth year of the Multi-Year Budget. 5.3. In the first year of a new Council term, Council will develop its Strategic Plan. Council will approve a four-year average annual tax levy adjustment from rates that address municipal inflationary pressures and funding for additional investments that are aligned with Council’s Strategic Plan. 5.4. After Council approves the Strategic Plan and the Multi-Year Budget, the Senior Leadership Team will prepare corporate business plans that clearly outline the current state and future direction of each service. 5.5. The business plans will identify the strategies and priorities that are driving the strategic direction of the service. All strategies and priorities must be aligned Page 116 Attachment 2 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 4 of 9 with the Council’s Strategic Plan and the funding approved through the Multi- Year Budget. 5.6. The Treasurer, or designate, may release budget funds prior to a new Multi- Year Budget or annual budget update approval up to a prorated amount based on the previous fiscal year’s approved budget. Such authorization will continue for a reasonable period of time until budget approval of a new Multi-Year Budget or Annual Budget Update. Budget Adjustments 5.7. Throughout the Multi-Year Budget process, business plans will be modified for material changes that result from any material amendments through annual updates. 5.8. The Senior Leadership Team will present to Council a budget that is in compliance with the Municipal Act, 2001. The budget will contain adjustments to reflect inflationary pressures and additional investments or disinvestments that would further adjust the budget requirement. Each additional investment or disinvestment submitted for Council consideration shall be supported with a comprehensive business case. 5.9. In the first year of a budget cycle, the Senior Leadership Team will be seeking approval of a Multi-Year Budget for a four-year period. Commencing in the second year and in each subsequent year of the multi-year budget, Council is required by the Municipal Act, 2001 to review and readopt the budget for that year. As part of the review process, Council is required to make changes that are required for the purpose of making the budget compliant with the provisions of the Act which include ensuring that the municipality has sufficient funds to pay all debts, amounts required for sinking funds or retirement funds and amounts required for boards, commissions or other bodies. As such, Council will have the opportunity to make other amendments to the budget annually. 5.10. In addition to the matters required to be addressed by the Municipal Act, 2001, the scope of annual budget changes may include, but are not limited to, the following: 5.10.1. New or Changed Regulation – A new or changed legislation or regulation with a financial impact to the Municipality. Page 117 Attachment 2 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 5 of 9 5.10.2. New Council Direction – A new Council direction that has transpired after the approval of the Multi-Year Budget. 5.10.3. Cost or Revenue Driver – A corporate or service area budget adjustment because of changes in economic conditions. 5.11. Proposed changes to future years’ operating budgets should only be brought forward and approved once per year. Adjustments are limited to one per year, during the annual update period, to ensure that all requests are considered together. Administrative Change Process 5.12. There is an opportunity for Services to realign the budget, provided it has a net zero impact and is administrative in nature. 5.13. It is not permissible to create new programs, or implement new fees, as by definition, the changes must be administrative and have no impact to service levels. 5.14. Any changes must be a reallocation of one expense to another expense, or from one revenue source to another revenue source, thereby having no overall financial impact. 5.15. Changes affecting both revenues and expenses with a net zero impact will be approved by a member of the Senior Leadership Team and the Deputy CAO/Treasurer. 5.16. Capital projects that are similar in nature and have a similar or interchangeable funding source. Reportable Change Process 5.17. There is an opportunity for Services to make budget adjustments providing the net amount is between 0.05 per cent and 0.49 per cent of the property tax levy or a capital project between $100,001 and $499,999. 5.18. Any changes will not have an impact on the property tax levy or the user fee rates and charges or service levels. Page 118 Attachment 2 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 6 of 9 5.19. Any net increase, or decrease, in the budget will be managed through efficiencies with offsetting expense reductions or through reserve transfers or grant funding. All changes are accommodated within the approved budget. 5.20. Changes will be adopted through the annual budget update process. Material Change Process 5.21. A material change crosses the threshold of 0.50 per cent of the property tax levy or a capital project $500,000 or greater. 5.22. Budget requests and capital projects will be reviewed, and possible re - prioritization may occur to accommodate the material change within the existing approved budget. 5.23. Changes may have an impact on the property tax levy or the user fees, rates and charges or service levels. 5.24. All material changes will be presented to Council through the annual budget update process. 6. Roles and Responsibilities: Roles and Responsibilities section should be organized by the position, department, or committee that has certain required responsibilities in maintaining compliance and implementing the policy. 6.1. The Mayor is responsible for: 6.1.1. Presenting a budget to Council by February 1 of each year. 6.1.2. If desired, providing direction to Staff on the preparation of the budget on the Mayor’s behalf. 6.2. Council is responsible for: 6.2.1. Establishing priorities through the Strategic Plan. 6.2.2. Reviewing, and proposing amendments, if desired, to the Budget 6.2.3. Approving the rates required for taxation and user fees by by-law. Page 119 Attachment 2 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 7 of 9 6.2.4. Preparing and presenting a budget if the Mayor does not meet the legislated timeline of February 1 of each year. 6.3. Chief Administrative Officer (CAO) is responsible for: 6.3.1. Directing, in co-operation with the Treasurer and the Senior Leadership Team, the preparation and presentation of the Budget. 6.3.2. Exercising financial control over all corporate operations in conjunction with the Treasurer and the Senior Leadership Team to ensure compliance with the Council-approved Budget. 6.4. Deputy CAO/Treasurer is responsible for: 6.4.1. Planning, leading, and coordinating the overall preparation, engagement, communication, and administration of the Budget, both internally and externally 6.4.2. Ensuring adherence to budget policies and financial policies as approved by Council. 6.4.3. Developing the funding strategies for the financing of the Budget. 6.4.4. Coordinating with Local Boards and Agencies to incorporate their budget requirements into the Budget and forecasts. 6.5. Deputy CAOs and Directors are responsible for the following within their scope of authority: 6.5.1. Reviewing and approving the annual budget strategy. 6.5.2. Reviewing and recommending a Departmental/Divisional Budget that is aligned to the Strategic Plan to Council. 6.5.3. Each Deputy CAO or Director and the CAO are accountable for their individual respective service area budgets. 6.5.4. Recognizing the priorities of the Municipality as a whole, separate from specific departmental priorities, during the decision-making process. Page 120 Attachment 2 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 8 of 9 6.5.5. Maintaining a culture of data-driven decision-making that is a result of appropriate internal collaboration, alignment to the Strategic Plan, business case option assessment, and risk management. 6.5.6. Supporting transparent and open communication of budget performance and financial risks to Council. 6.6. Managers are responsible for the following within their scope of authority: 6.6.1. Developing and recommending, individually, an itemized multiple -year service budget and forecast to the Senior Leadership Team in accordance with established guidelines, timelines, and process. 6.6.2. Developing service business plans that identify operating and capital resource requirements to address changing service delivery needs and implementation of Strategic Plan initiatives. 6.6.3. Ensuring that the resources and assets under their authority are effectively managed on an ongoing basis. 6.7. All Staff are responsible for: 6.7.1. Ensuring that resources are utilized within the parameters set by the Council- approved budget. 7. Related Documents: 7.1. Not applicable 8. Inquiries: 8.1. Manager of Financial Planning/Deputy Treasurer 9. Revision History: Date Description of Changes Approved By June 3, 2024 Changes to reflect “Strong Mayor Powers:” impact to budget Page 121 Attachment 2 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 9 of 9 Page 122 Attachment 3 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 1 of 7 Number: CP-00# Title: Development Charges Interest Rate Type: Financial Management Sub-type: Click or tap here to enter text. Owner: Financial and Technology Financial Planning Approved By: Council Approval Date: January 1, 2021 Effective Date: January 1, 2021 Revised Date: June 17, 2024 Applicable to: All Departments 1. Legislative or Administrative Authority: 1.1. This policy was developed in accordance with Sections 26.1, 26.2, and 26.3 of the Development Charges Act, 1997, which provides municipalities with the ability to charge interest, at a prescribed maximum rate, on certain development charge payments as permitted. 2. Purpose: 2.1. The purpose of this policy is to establish the rules and practices for charging interest, as permitted under sections 26.1, 26.2, and 26.3 of the Development Charges Act, 1997. 2.2. This policy will support the Municipality’s ability to build growth-related infrastructure in a way that is financially sustainable and will help achieve the following outcomes: 2.2.1. Good government providing reliable programs and services 2.2.2. Continued delivery of complete communities in a fiscally sustainable way 2.2.3. Fair and equitable treatment of all stakeholders involved in delivering housing supply, including residents, businesses and developers. Page 123 Attachment 3 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 2 of 7 3. Scope: 3.1. This policy applies to the charging of interest, as permitted under sections 26.1, 26.2, and 26.3 of the Development Charges Act, 1997. This includes all types of development in the Municipality of Clarington: 3.1.1. That are eligible for instalment payments under section 26.1 of the Development Charges Act, 1997 3.1.2. Under section 26.2 of the Development Charges Act, 1997, where an application for approval of development in a site plan control area under subsection 41(4) of the Planning Act, 1990 has been made, or where an application for an approval of a development in a site plan control area under subsection 41(4) of the Planning Act has not been made, but where an application has been made for an amendment to a bylaw passed under section 34 of the Planning Act, 1990. 4. Definitions: 4.1. Act – The Development Charges Act, 1997, as amended, revised, re-enacted, or consolidated from time to time, and any successor statute. 4.2. Development – The construction, erection or placing of one or more buildings or structures on land. This includes the making of an addition or alteration to a building or structure that has the effect of increasing the size or changing the use from non-residential to residential or from residential to non-residential and includes redevelopment. 4.3. Development Charge(s) – The Municipality of Clarington’s development charges. 4.4. Total Accrued Amount – Equal to the total of the development charges and interest which has accrued. Page 124 Attachment 3 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 3 of 7 5. Policy Requirements: Regulatory Framework 5.1. Under the Act, development charges shall be paid in equal annual installments, beginning at the earlier of first occupancy or occupancy permit under the Building Code, Act, 1992 for: 5.1.1. Rental housing development 5.1.2. Institutional development 5.2. Subsection 26.1 (7) of the Development Charges Act, 1997 allows a municipality to charge interest on the instalments from the date of the development charges would have been payable under section 26 of the Act, to the date the instalment is paid, at a rate not to exceed a prescribed maximum rate. 5.3. Subsection 26.2 (1) of the Act states that the total amount of a development charge is determined on: 5.3.1. The day an application for an approval of development under subsection 41 (4) of the Planning Act was made, or 5.3.2. If clause (a) does not apply, the day an application for an amendment to a bylaw passed under section 34 of the Planning Act was made. 5.4. Under subsection 26.2 (3) of the Act, a municipality may charge interest on the development charge, at a rate not exceeding the prescribed maximum interest rate, from the date of application referred to in paragraph 5.3 to the date the development charge is payable. 5.5. The Act allows a municipality to charge interest on the development charge at a rate not exceeding the prescribed maximum interest rate. 5.6. The rules for determining the maximum interest rate are prescribed under section 26.3 of the Act. The maximum interest rate being the average prime rate, as defined under the Act, plus 1%. Page 125 Attachment 3 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 4 of 7 General Policy 5.7. Notwithstanding paragraphs 5.1 to 5.6, for hospices qualifying for the deferral of development charges, the interest rate shall be 0%. Should a development no longer qualify as a hospice during the deferral period, the development shall be charged interest, in accordance with paragraphs 5.1 to 5.6, on any unpaid development charges from the date that it no longer qualifies . 5.8. The interest rate that shall be used for the first installment payment is the maximum interest rate permitted under section 26.3 of the Act, at the date the development charges would have been payable (i.e., building permit issuance). The interest rate that shall be used for each subsequent installment payment shall be reset at the date of subsequent installment payments and capped at the maximum interest rate permitted under section 26.3 of the Act at the date the development charges were payable (i.e., building permit issuance). 5.9. Where the Province of Ontario has not set a prescribed rate the following applies: 5.9.1. The interest rate shall be set annually on June 30, for the period July 1 to December 31, and December 31 for the period January 1 to June 30 of the following year based on the Bank of Canada’s daily bank rate + 2 per cent. 5.10. In the event the interest rate is amended or revised, the new interest rate shall apply to the total accrued amount, prorated from the date of the interest rate change to: 5.10.1. The date the total accrued amount is fully paid, or 5.10.2. The date of a subsequent change in the interest rate 5.11. All interest shall be compounded annually and shall accrue from the date of the applicable application until the date the total accrued amount is fully paid. For the purposes of proration, a calendar year is 365 days 5.12. If a subsequent application(s) is made for a development: 5.12.1. The date the subsequent application is made will become the new date under which the total amount of the development charge is determined; Page 126 Attachment 3 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 5 of 7 5.12.2. All interest that had accrued prior to the subsequ ent application shall be deemed to be $0; 5.12.3. Interest will be compounded annually and begin to accrue from the date the subsequent application is made; and 5.12.4. The amount of the development charges will be calculated as of the date of the subsequent application. 5.13. If a development was one of the eligible types of development for instalment payments under section 26.1 of the Act, the total accrued amount shall continue to accrue interest from the date of the issuance of a building permit. Interest shall accrue on the outstanding balance until the total accrued amount has been fully paid. Effective Date and Transition 5.14. This policy shall take effect on the date it is approved by Council. 5.15. This policy may be repealed and/or modified by Council at any time 5.16. To allow for a transition period, this policy does not apply to any development where: 5.16.1. An application under sections 34 or 41 (4) of the Planning Act is not required, but: a) Still qualifies for instalment payments under section 26.1 of the Act, and b) Has been issued a building permit for development by the Municipality prior to July 1, 2020 5.16.2. An application under subsection 41 (4) of the Planning Act is: a) Made after January 1, 2020, and b) Has been issued a building permit for development by the Municipality prior to July 1, 2020 5.16.3. An application for an amendment to a bylaw passed under section 34 of the Planning Act is: Page 127 Attachment 3 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 6 of 7 a) Made after January 1, 2020, and b) Has been issued a building permit for development by the Municipality prior to July 1, 2020 6. Roles and Responsibilities: 6.1. Council is responsible for: 6.1.1. Adopting, reviewing and amending this Policy as appropriate. 6.2. Chief Administrative Officer (CAO) is responsible for: 6.2.1. Ensuring staff compliance with this Policy. 6.3. Deputy CAO/Treasurer, or delegate, is responsible for the following within their scope of authority: 6.3.1. Updating this Policy for changes in legislation. 6.3.2. Providing the Chief Building Official the up to date interest rate to be charged on application freezes and deferrals. 6.3.3. Ensuring that interest is properly charged on deferred amounts. 6.4. Chief Building Official, or delegate, is responsible for the following within their scope of authority: 6.4.1. Ensuring that applicants are aware of the interest charges to be charged. 6.4.2. Confirm that a complete application was made for the purposes of determining the total amount of the development charge. 6.4.3. Communicating with Financial Services to ensure that projects qualifying for deferral are identified. 6.5. All Staff are responsible for: 6.5.1. Following this Policy. Page 128 Attachment 3 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 7 of 7 7. Related Documents: 7.1. Development Charges By-law 8. Inquiries: 8.1. Manager, Financial Planning/Deputy Treasurer 8.2. Chief Building Official 9. Revision History: Date Description of Changes Approved By June 17, 2024  Update for change in format.  Add Roles and Responsibilities section as this is new.  Update rate policy to reflect Province of Ontario Regulation which sets the rate. If there is no prescribed rate, the previous methodology remains in the Policy.  Removed affordable housing and non-profit housing references as legislation now exempts them from DCs. Council Page 129 Attachment 4 to FSD-027-24 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 1 of 12 Number: CP-00# Title: Strategic Asset Management Policy Type: Financial Management Sub-type: Asset Management Owner: Finance and Technology Financial Planning Approved By: Council Approval Date: April 29, 2019 Effective Date: April 29, 2019 Revised Date: June 17, 2024 Applicable to: All Departments 1. Legislative or Administrative Authority: 1.1. This policy was developed in accordance with the Infrastructure for Jobs and Prosperity Act, 2015, which gives the province the authority to guide municipal asset management planning through regulation. This policy was also developed in accordance with O. Reg 588/17: Asset Management Planning for Municipal Infrastructure which requires municipalities to develop a Strategic Asset Management Policy. 1.1.1. The following resolution was passed by Council regarding the Strategic Asset Management Policy: Resolution #GG-220-19 (April 15, 2019) That Report FND-010-19 be received; and That the Strategic Asset Management Policy attached to Report FND-010-19 be approved. Page 130 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 2 of 12 2. Purpose: 2.1. The Municipality of Clarington is required by O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015, to publish a Strategic Asset Management Policy. 3. Scope: 3.1. This policy applies to all assets owned by the Municipality of Clarington which are currently supporting provision of services. Assets which have been declared surplus and are actively being marketed are not included in the scope of this policy. 4. Definitions: 4.1. Asset - means an infrastructure asset directly owned by the Municipality or included on the Municipality’s consolidated financial statements. 4.2. Asset Management - means the coordinated set of activities required to realize optimal value from municipal Assets. Involves balancing costs, opportunities and risks against the desired performance of Assets to achieve strategic objectives. 4.3. Asset Management Plan - means the documented information that specifies the activities required for an individual Asset, or group of Assets, to achieve the Municipality’s Asset Management objectives. 4.4. Capitalization Threshold – means the minimum cost an individual asset must have before it is to be recorded as a capital asset for financial reporting purposes. The thresholds are outlined in the Municipality’s Capitalization Policy. 4.5. Lifecycle Activities – means activities undertaken, with respect to a municipal asset over its service life, that would result in either a capital or significant operating cost. This may include, but is not limited to, activities such as construction, maintenance, rehabilitation, and replacement. 4.6. Lifecycle Costs – means the costs associated with Lifecycle Activities. Page 131 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 3 of 12 4.7. Level of Service - means defined measure(s) that evaluate the effectiveness of a particular activity as perceived by customers or in relation to a technical standard or service. 5. Policy Requirements: Strategic Alignment 5.1. The Municipality of Clarington envisions building a connected, dynamic and welcoming community. This vision requires the alignment of many initiatives and it is crucial that all existing and planned asset decisions support both the recommended levels of service and the long term vision for the community. 5.2. These levels of service will be determined by comparing and developing performance measures adopted during the preparation of the Asset Management Plan. The Municipality will reference the metrics required for departments to measure service levels and support recommendations with financial sustainability. The Asset Management Plan should be a foundational document when considering asset decisions, desired levels of service and current and future budgets. 5.3. Asset management planning cannot occur independent of other municipal plans and objectives. A holistic approach will be employed to develop a practical asset management plan that coordinates the responsibilities and ambitions of our community’s municipal plans. Council and senior management will review this policy at least once every five years and adopt an asset management planning approach that integrates: 5.3.1. Municipal Budget 5.3.2. Corporate Strategic Plan 5.3.3. Official Plan and Secondary Plans 5.3.4. Development Charge Studies 5.3.5. Climate Change Mitigation and Adaptation Plans 5.3.6. Master Plans Page 132 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 4 of 12 Guiding Principles 5.4. The Infrastructure for Jobs and Prosperity Act, 2015 sets out principles to guide asset management planning for municipalities in Ontario. The Municipality of Clarington shall incorporate the following principles for asset management priority setting, planning and investment: 5.4.1. Forward Looking: The Municipality shall take a long-term view while considering demographic and economic trends in the Region of Durham. 5.4.2. Budgeting and Planning: The Municipality shall take into account any applicable budgets or fiscal plans, such as fiscal plans released under the Fiscal Transparency and Accountability Act, 2004 and Budgets adopted under Part VII of the Municipal Act, 2001. 5.4.3. Prioritizing: The Municipality shall clearly identify infrastructure priorities which will drive investment decisions. 5.4.4. Economic Development: The Municipality shall promote economic competitiveness, productivity, job creation and training opportunities. 5.4.5. Transparency: The Municipality shall be evidence-based and transparent. Additionally, subject to any prohibition under an Act or otherwise by law on the collection, use, or disclosure of information, the Municipality shall: i. Make decisions with respect to infrastructure based on information that is publicly available or made available to the public, and ii. Share information with implications on infrastructure and investment decisions with the Government and broader public sector entities. 5.4.6. Consistency: The Municipality shall ensure the continued provision of core public services. 5.4.7. Environmental Conscious: The Municipality shall minimize the impact of infrastructure on the environment by respecting and helping maintain ecological and biological diversity, by augmenting resilience to effects of climate change and by endeavoring to make use of acceptable recycled aggregates where feasible. Page 133 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 5 of 12 5.4.8. Health and Safety: The Municipality shall ensure that the health and safety of workers involved in the construction and maintenance of infrastructure assets is protected. i. Innovation: The Municipality shall create opportunities to make use of innovative technologies, services and practices, particularly where doing so would utilize technology, techniques, and practices developed in Ontario. ii. Integration: The Municipality shall, where relevant and appropriate, be mindful and consider the principles and content of non-binding provincial or municipal plans and strategies established under an Act or otherwise, in planning and making decisions surrounding the infrastructure that supports them. iii. Community Focused: The Municipality shall promote community benefits, being the supplementary social and economic benefits arising from an infrastructure project that are intended to improve the well-being of a community affected by the project, such as local job creation and training opportunities, improvement of public spaces within the community, and promoting accessibility for persons with disabilities. iv. Customer Focused: The Municipality will have clearly defined levels of service and apply asset management practices to maintain the confidence of customers in how municipal assets are managed. v. Service Focused: The Municipality will consider all the assets in a service context and take into account their interrelationships as opposed to optimizing individual assets in isolation. vi. Risk Based: The Municipality will manage the asset risk associated with attaining the recommended levels of service by focusing resources, expenditures, and priorities based upon risk assessments and the corresponding cost/benefit, recognizing that public safety is the priority. vii. Value-based Affordable: The Municipality will choose practices, interventions and operations that aim at reducing the lifecycle cost of asset ownership, while satisfying recommended levels of service. Decisions are based on balancing service levels, risks, and costs. viii. Sustainable Development: The Municipality shall ensure that the future development of Clarington is pursued in a manner that ensures that current needs can be met without compromising the ability of future generations to meet their own needs. Page 134 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 6 of 12 Capitalization Thresholds 5.5. The Strategic Asset Management Policy applies to all municipal assets actively managed in their service delivery. Assets may also be subject to the capitalization thresholds set out in the Capitalization Policy and recorded in the Municipality’s financial statements. The service provided by an individual or pooled asset will be the determining factor for inclusion in the asset management plan; this may also result in the asset not being recorded as an asset for financial reporting purposes. Governance and Continuous Improvement 5.6. The Municipality requires the commitment of key stakeholders for the organization to ensure that the policy creates appropriate practices in asset management planning that can be implemented, reviewed and adapted. 5.7. Council are the stewards of all municipal assets and are responsible for their oversight on behalf of citizens. By resolution , Council will approve an asset management plan and its updates every five years as well as support the ongoing efforts to continuously improve and implement this plan. Council commits to an annual review of progress regarding implementation, obstacles, consultation with department heads and strategies to address impediments . The strategic asset management policy will also be reviewed by staff periodically to ensure consistency with other municipal strategic documents. 5.8. The CAO is ultimately responsible for asset management planning for the Municipality and will maintain compliance with the regulation. This role will be directly supported by the Treasurer who will be responsible for the strategic financial management of the asset management plan. Department Heads will support their services areas and update long and short-term asset requirements in coordination with the annual budget process. 5.9. Continuous improvement is the hallmark of asset management, and the Municipality will employ a framework that will strategically focus on efficiencies and effectiveness. The CAO will endorse, and Council shall approve by resolution the asset management plan and annual update reports on the following schedule: 5.9.1. Asset Management Plan: Phase 1 (Core Assets) to be issued on or before July 1, 2022. Page 135 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 7 of 12 5.9.2. Asset Management Plan: Phase 2 (Non-core Assets) to be issued on or before July 1, 2024. 5.9.3. Asset Management Plan: Phase 3 (Financing Strategy and Proposed Levels of Service) to be issued on or before July 1, 2025. 5.9.4. Asset Management Plan: Reviews to be issued on a rolling five-year cycle, beginning no later than July 1, 2027. 5.9.5. Subsequent asset management plans to be issued on a five-year cycle commencing no later than July 1, 2027. Budgeting 5.10. The asset management plans and the progress made will be considered annually in the creation of the Municipality’s capital budgets, operating budgets, and long-term financial plans. Plans will also be referenced by the service area’s department head in their preparation of their budget submission to assist in identifying all potential revenues and costs including operating, maintenance, replacement, and decommission. Prospective earnings and expenses associated with future infrastructure and asset decisions will be evaluated on the validity and need of each new capital asset, including the impact on future operating costs and will incorporate new revenue tools and alternative funding strategies where possible. 5.11. Finance will be involved in asset management planning to facilitate and bridge between the financial strategies developed in the asset management plan, the budget submissions of each service area, the budgeti ng process as a whole and the Municipality’s strategic documents. Community Planning 5.12. Best practice in asset management planning is ensuring alignment with the Municipality’s Official Plan. Partnering these documents will determine how the community is projected to change and inform asset management decisions regarding levels of service, location and affordability in development and redevelopment areas. Clarington’s Official Plan recognizes three key principles that provide direction in community planning; sustainable development, healthy communities and growth management. Page 136 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 8 of 12 Sustainable Development 5.13. Development in Clarington will be pursued in a manner that ensures current needs are met without compromising the ability of future generations to meet their needs. The Asset Management Plan will incorporate considerations regarding climate change and sustainable resource management in an effort to mitigate and adapt to our dynamic environment, protect the integrity and vitality of natural systems and processes, and support the transition to a clean energy economy. Healthy Communities 5.14. Healthy communities will nurture the well-being of residents and endeavor to provide the highest quality of life. The Asset Management Plan will pursue excellence in urban design, public safety, economic vitality, diversity, accessibility and active lifestyles through the integration of land uses and the development of complete communities. Growth Management 5.15. Growth management recognizes the importance of sustainable development and healthy communities and applies those principles to the land development process. The Asset Management Plan will utilize the most recent Development Charges Background Study to forecast municipal expansion of assets for urban growth and encourage balanced growth and compact urban form to align with municipal financial resources. Growth management will extend assets in an orderly, cost-effective manner through an understanding of current and future needs. Climate Change 5.16. Municipalities play an essential role in developing climate change solutions locally and are often on the front lines of responding to climate change impacts. The Municipality has made great strides to protect the environment and develop sustainable communities addressing the complexity and realities of climate change with coordinated, cross-corporate action. A key element in advancing these efforts is the integration of climate change considerations into asset management planning. Page 137 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 9 of 12 5.17. The Municipality commits to the development of local actions that will support the reduction of greenhouse gas emissions and the adaptation of buildings and infrastructure to be more resilient to the adverse impacts of climate change. In applying a climate change lens to asset management planning, integrating the levels of service and adhering to maintenance schedules the Municipality’s disaster response plans and contingency funding will be enhanced, while addressing the capital infrastructure deficit. Efforts will be made to reduce the life cycle costs of new builds, with more importance being placed on methods to improve the energy efficiency and reduce the carbon footprint of our existing assets. The asset management plan will incorporate this sustainable approach to climate change mitigation and strengthening resilience. 5.18. Understanding the potential risks that the Municipality could face in a changing climate is an important component of the Municipality’s risk management approach and asset management planning. Balancing the potential cost of vulnerabilities, changing environmental conditions and asset planning will contribute to mitigating climate change risks and associated costs. Risk Management 5.19. The Municipality will work to develop risk management tools and frameworks that assist with key asset management risk decisions. Instruments that will enable the Municipality to evaluate risks and priorities consistently across the entire asset portfolio by establishing context, assess & control, apply treatments, monitor results and review assets and the potential risks. 5.20. Climate change research and analysis will concentrate on land usage, clean and renewable energy, active transportation, energy use and bu ilding retrofits. This approach will balance life cycle costing as we adapt to climate change impacts on new and existing assets. Efforts will be made to reduce life cycle costs of new builds and more importance will be placed on methods to improve the energy efficiency of our existing assets. Stakeholder Engagement 5.21. Creating the opportunity for residents, businesses, institutions and our neighbours to engage the Municipality in asset management decisions and the municipal services they need is invaluable. Stakeholders can help align corporate strategies with operations through insights for asset management coordination and planning when platforms are made readily available. The Page 138 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 10 of 12 Municipality will foster informed dialogue with these parties and engage with them by: 5.21.1. Providing information on our website for stakeholders served by the municipality on appropriate asset management planning; 5.21.2. Coordinating asset management planning with other departments and strategic documents; 5.21.3. Striving to develop a social media presence dedicated to updating stakeholders on upcoming asset management developments. 5.21.4. Holding, when appropriate, public meetings to receive concerns, questions and comments from stakeholders on specific asset management planning decisions. 6. Roles and responsibilities 6.1. Council is responsible for: 6.1.1. Approving, by resolution, the Municipality’s Asset Management Plan and updates every five years. 6.1.2. Approving, by resolution, any updates to the Strategic Asset Management Policy resulting from the policy reviews conducted every five years. 6.1.3. Supporting the implementation of the Asset Management Plan and ongoing efforts to improve the Plan and ensure it includes changes necessitated by the updates to other strategic documents. 6.2. Chief Administrative Officer (CAO) is responsible for: 6.2.1. Endorsing the Strategic Asset Management Policy and Municipal Asset Management Plan. 6.2.2. Maintain compliance with the Strategic Asset Management Policy and O. Reg 588/17: Asset Management Planning for Municipal Infrastructure, in conjunction with the Deputy CAO/Treasurer, or delegate. 6.3. Deputy CAO/Treasurer, or delegate, is responsible for: Page 139 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 11 of 12 6.3.1. Developing the Municipality’s Asset Management Plan and presenting to Council for consideration and endorsement. 6.3.2. Completing periodic updates of the Municipality’s Asset Management Plan, in accordance with O. Reg 588/17, and presenting the updates to Council for endorsement. 6.3.3. Completing periodic reviews of the Municipality’s Strategic Asset Management Policy, in accordance with O. Reg 588/17, and presenting any resulting updates to Council for endorsement. 6.3.4. Collaborating with representatives from other divisions and departments to ensure the data presented in the Asset Management Plan is reflective of current assumptions. 6.4. Deputy CAOs, Directors and Managers are responsible for the following within their scope of authority: 6.4.1. Designating staff resources to assist with the preparation of the Asset Management Plan. 6.4.2. Reviewing and confirming the accuracy of the asset information included in the Asset management Plan. 6.4.3. Ensuring the effective management of assets by developing service level plans that address the needs outlined in the Asset Management Plan. 6.4.4. Ensuring that assets are being maintained in a manner that allows them to perform up to their desired levels of service. 7. Related Documents: 7.1. Not Applicable 8. Inquiries: Manager, Financial Planning/Deputy Treasurer Page 140 Council Policy If this information is required in an alternate format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131 Page 12 of 12 9. Revision History: Date Description of Changes Approved By June 17, 2024  Update for change in format  Add roles and responsibilities section  Update policy to reflect legislation changes that have occurred since the previous policy. Council Page 141 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 3, 2024 Report Number: FSD-028-24 Authored by: Sandra McKee, Acting Purchasing Manager Submitted By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology Reviewed By: Mary-Anne Dempster, CAO By-law Number: Resolution Number: File Number: CL2024-17 Report Subject: Northglen East Park Siteworks Recommendations: 1. That Report FSD-028-24, and any related delegations or communication items, be received; 2. That Powcon Inc. with a total bid amount of $803,012.58 (Net HST Rebate) being the lowest compliant bidder meeting all terms, conditions and specifications of CL2024-17 be awarded the contract for the Northglen East Park Siteworks; 3. That the total funds required for this project in the amount of $1,131,977.73 (Net HST Rebate) which includes construction costs of $803,012.58 (Net HST Rebate) and other related costs such as Hydro servicing fees, playground and splash pad equipment, design fee’s, construction monitoring and materials testing, and contingencies of $328,965.15 (Net HST Rebate) be approved; and 4. That all interested parties listed in Report FSD-028-24, and any delegations be advised of Council’s decision. Page 142 Municipality of Clarington Page 2 Report FSD-028-24 Report Overview To request authorization from Council to award tender CL2024 -17 Northglen East Park Siteworks to the lowest compliant bidder Powcon Inc. 1. Background 1.1 Tender specifications were prepared by Planning and Infrastructure Services for the Northglen East Park siteworks, locates in Bowmanville at 3301 Middle Road and were provided to the Purchasing Services Division. 1.2 The scope of work included the following:  Construction of baseball diamond complete with backstop, dug outs, player benches, outfield fence, clay infield, and spectator seatings.  Construction of a splash pad, playground, and shade structure.  Site servicing, including water, electrical, and storm connections to support the splash pad.  General siteworks and earthworks to support the park amenities including concrete and asphalt walkways, soft landscaping, and tree planting. 1.3 The work for this project is located in Bowmanville at the following location:  Northglen East Park, 3301 Middle Road, Bowmanville. 1.4 Tender CL2024-17 was issued by the Purchasing Services Division and advertised on the Municipality’s website. The tender closed on May 3, 2024. 2. Analysis 2.1 Thirty-seven plan takers downloaded the tender document. Nine submissions were received in response to the call. The submissions were reviewed by the Purchasing Services Division (see Attachment 1), and all submissions were deemed compliant. The bid results were forwarded to the Planning and Infrastructure Services Department for their review and consideration. 2.2 After review and analysis by the Planning and Infrastructure Services Department and the Purchasing Services Division, it was mutually agreed that the low compliant bidder, Powcon Inc. be recommended for the award of tender CL2024 -17. Page 143 Municipality of Clarington Page 3 Report FSD-028-24 2.3 Powcon Inc. has not worked with the Municipality in the past and as a result reference checks were completed. References received for this company were satisfactory. 3. Financial Considerations 3.1 The value of the total project cost exceeds the allocated budget from the various funding sources by $187,065.00. The additional funds required will be funded by as follows: Parks and Recreation Development Charge Reserve Fund $187,065.00 3.2 The total funds required for this project in the amount of $1,137,065.73 (Net HST Rebate) which includes construction costs of $803,012.58 (Net HST Rebate) and other related costs such as Hydro servicing fees, playground and splash pad equipment, design fee’s, construction monitoring and materials testing, communication allowances, and contingencies of $334,053.15 (Net HST Rebate) will be funded from the following accounts: Description Account Number Amount Northglen East Park 110-50-325-83708-7401 $950,000 Parks & Recreation Development Charges – Additional Funds 110-50-325-83708-7401 187,065 3.3 Expenditures incurred to date and included in the total project amount include:  External Design Fee – $35,699.34 (Net HST Rebate)  External Design Fee for Visual Rendering – $1,920.34 (Net HST Rebate) 3.4 A $5,000 allowance has also been included for community events, engagement, and communications. Planning and Infrastructure will coordinate with Communications at various stages of the project to effectively promote the new park construction. 3.5 Queries with respect to the department’s needs, specifications, etc., should be referred to the Deputy CAO, Planning and Infrastructure Services 4. Strategic Plan 4.1 This project aligns with C.4 of the strategic plan and prioritizes recreation to cultivate a strong, thriving, and connected community where everyone is welcome. Page 144 Municipality of Clarington Page 4 Report FSD-028-24 5. Concurrence This report has been reviewed by the Deputy CAO / Director of Planning and Infrastructure Services who concurs with the recommendations. 6. Conclusion It is respectfully recommended that Powcon Inc., being the lowest compliant bidder meeting specifications, be awarded the contract for tender CL2024-17 Northglen East Park Siteworks. Staff Contact: Sandra McKee, Acting Purchasing Manager, 905-623-3379 Ext 2210 or smckee@clarington.net. Attachments: Attachment 1 – Bid Summary Interested Parties: List of Interested Parties available from Department. Page 145 Municipality of Clarington Page 5 Report FSD-028-24 Attachment 1 – Bid Summary Municipality of Clarington CL2024-17– Northglen East Park Siteworks Bid Summary Bidder Total Bid (Including HST) Total Bid (Net HST Rebate) Powcon Inc. $891,710.12 $803,012.58 Zilli Construction Ltd. 930,097.35 837,581.47 Envision Excavating Ltd. 1,052,284.25 947,614.56 Royalcrest Paving & Contracting Ltd. 1,069,273.80 962,914.18 Hawkins Contracting Services Ltd. 1,079,318.94 971,960.13 Quality Property Services 1,389,965.27 1,251,706.78 Lancoa Contracting Inc. 1,383,685.00 1,246,051.20 Shayk Construction Inc. 1,508,973.75 1,358,877.60 Strong Bros. General Contracting Ltd. 1,622,425.75 1,461,044.64 Page 146 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 3, 2024 Report Number: FSD-029-24 Authored by: Trevor Pinn Submitted By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology Reviewed By: Mary-Anne Dempster, CAO Resolution Number: By-law Number: File Number: Report Subject: Physician Recruitment Recommendations: 1. That Report FSD-029-24, and any related delegations or communication items, be received; 2. That Staff be directed to execute the Memorandum of Understanding with the Region of Durham, to the satisfaction of the Deputy CAO/Solicitor, substantially in the form as attached in Attachment #1; 3. That the remaining funds from the approved $100,000 in the 2023 budget for physician recruitment be used to meet the Municipality’s obligations to the Region of Durham under the regional recruitment program; 4. That Staff be directed to create an incentive program which provides up to $25,000 per doctor, based on matching contributions from medical off ices in a form similar to the Pilot Program in the Town of Whitby; 5. That an additional $250,000 be approved to be drawn from the Economic Development Reserve Fund to fund the incentive program for up to 10 doctors; and 6. That all interested parties listed in Report FSD-029-24 and any delegations be advised of Council’s decision. Page 147 Municipality of Clarington Page 2 Report FSD-029-24 Report Overview This report is an update to Council on local physician recruitment attraction and incentive programs under development in the Region of Durham. The Region of Durham is focusing on attracting family physicians to locate within the Region in partnership with Lakeridge Health and Queens University, this work is focused on bringing family doctors broadly to the Region. A separate initiative being proposed is a local incentive program to attract physicians locally to Clarington medical clinics. There is a broad family physician shortage across the Province, and it is key that the Municipality work to bring doctors to one of the fastest- growing municipalities in the Province to ensure that we maintain the quality of life that residents expect of a growing municipality. 1. Background 1.1 During the 2023 Budget deliberations, Council amended the proposed budget by adding the following resolution: That the 2023 Budget be amended 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. 1.2 This report outlines two funding requests which meets the Strategic Priority of Council to facilitate local physician recruitment, one on a regional basis and one more locally focused. 2. Region of Durham Update 2.1 At its meeting of January 17, 2024, the Region of Durham Committee of the Whole approved Report #2024-COW -3 Family Physician Recruitment Program. This report recommended the creation of a Region of Durham wide program to attract and retain family medicine trainees and physicians to the Region as well as the hiring of a full-time recruiter. 2.2 This report recommended the creation of a Region of Durham-wide program to attract and retain family medicine trainees and physicians to the Region, as well as the hiring of a full-time recruiter. 2.3 Durham Region is facing a shortage of approximately 145 family physicians, representing approximately 180,000 residents. It is anticipated that the new Queen' s- Page 148 Municipality of Clarington Page 3 Report FSD-029-24 Lakeridge MD Family Medicine trainee program will bring 20 new trainees to the area each year. During this time, the attraction program will work to ensure that these trainees choose to stay in the Region after the completion of their training. 2.4 The proposed program is not an incentive program; it is geared more towards promoting the Region as a place to work and live and assisting with programs such as school and job information for doctors' families. 2.5 The Region of Durham has proposed a Memorandum of Understanding, see Attachment #1, for cost sharing with the municipalities in the Region. The total program cost would be $225,000, plus inflation, and would be shared on a population-based allocation. 2.6 The Municipality of Clarington would provide $3,960 for the remainder of 2024 and $16,200 in 2025. The 2026 and 2027 allocations would be subject to the inflationary index of CPI+2%. 2.7 It is recommended that the Municipality participate in this program on a Regional basis, as any doctors attracted to the area could provide capacity within the Region to assist with the shortage of family physicians. 3. Local Proposal 3.1 Staff have been approached by The Clarington Board of Trade (Sheila Hall) and Dr. Stone, who represent local physician recruitment priorities. They have proposed a model similar to the physician recruitment strategy employed by the Town of Whitby and the Oshawa Clinic (which is currently relocating its 117 King Street site to Whitby). 3.2 In 2023, Whitby Report CAO-20-23 recommended $300,000 be used from reserve funds to pilot a Family Physician Recruitment Incentive Partnership Pilot Program. Of this funding, $250,000 would be used to provide incentives to the physicians , and $50,000 would be used for the operating costs of the program. This would provide $500,000 to 10 physicians over a five-year term, equally shared between the Town and the clinic. This would provide $500,000 to 10 physicians over a five-year term, equally shared between the Town and the clinic. 3.3 The local proposal would see the municipality provide a $25,000/doctor incentive paid upfront upon the successful recruitment of a family physician to the clinic located at 222 King Street in Bowmanville. The clinic would also provide $25,000/doctor, for a total incentive of $50,000/doctor. 3.4 It is suggested that the incentive be provided upfront, as new doctors have set up costs for new practices, and the first few months after school are financially the hardest. The Page 149 Municipality of Clarington Page 4 Report FSD-029-24 agreement would require that the funds be paid back if the doctor leaves within five years. 3.5 Each new doctor would be required to roster 1,000 patients to receive the grant. There is no ability for the Municipality to require that these patients all be from Clarington; however, given the location of the clinic a greater proportion of the patients are likely to be local. 3.6 The recently announced Bill 185 includes proposed wording which would allow municipalities to incent prescribed individuals and businesses in spite of the “bonusing rules” in S.107 of the Municipal Act to meet Provincial priorities. It is anticipated that one of the prescribed businesses will be family physicians/healthcare as this was used as an example in Provincial releases. If this is the case, it would be suggested that the agreement be between the Municipality and the clinic who would then be able to have the employment agreement with the physicians. This would streamline funding as agreements would not need to be entered into between the Municipality and each doctor. An alternative would be similarly to provide the funding to CBOT , which facilitates the funding to the doctors and clinics. 3.7 While the clinic at 222 King Street East has approached the Municipality, staff recognize that several other medical clinics in Clarington serve residents. Staff would suggest that any program contemplated be available to local clinics that meet the same requirements (five years, 1,000 patients, equal funding by the clinic). 3.8 If the funding model is approved by Council, staff would draft the required agreements to provide funding to participating clinics. 4. Financial Considerations 4.1 The Municipality has established a reserve fund that has been used in the past to facilitate physician recruitment. As of December 31, 2023, the Economic Development reserve fund had a balance of approximately $717,500. These funds, less amounts already committed to Physician Recruitment through the 2023 budget process, would be the source of funding for any approved program. 4.2 During the 2023 Budget process, Council approved $100,000 to be earmarked for Physician Recruitment. To date, $20,000 has been spent. 4.3 The Municipality has established a reserve fund that has been used in the past to facilitate physician recruitment. As of December 31, 2023, this reserve fund had a balance of approximately $632,500. These funds would be the source of funding for any approved program. Page 150 Municipality of Clarington Page 5 Report FSD-029-24 5. Strategic Plan 5.1 This Report addresses priority C.2.1 of the 2024-27 Strategic Plan “Support efforts to improve access to medical practitioners and health care services. 5.2 Specifically, it addresses the identified actions to “Partner with the Region of Durham to create a Family Physician Recruitment Program” and “Connect with local health care providers to advocate for increased access to services”. 6. Concurrence This report has been reviewed by the Deputy CAO/Solicitor, Legislative Services and Deputy CAO, Planning and Infrastructure Services who concur with the recommendations. 7. Conclusion It is respectfully recommended that Council approve the signing of the MOU with the Region of Durham and provide direction for Staff to create a local incentive program for Clarington-based clinics based on similar requirements to the Town of Whitby. Staff Contact: Trevor Pinn, CPA, CA, Deputy CAO/Treasurer, 905-623-3379 x2602 or tpinn@clarington.net. Attachments: Attachment 1 -– Draft Memorandum of Understanding with the Region of Durham Interested Parties: The following interested parties will be notified of Council's decision:  Region of Durham  Dr. Stone  Clarington Board of Trade Page 151 Attachment 1 to FSD-029-24 1 Family Physician Recruitment Program: Memorandum of Understanding This purpose of this memorandum of understanding, dated 24 May 2024, is to guide discussions to fund, create and deliver a family physician recruitment program in Durham, with costs shared between the following municipalities: The Regional Municipality of Durham (the “Region”); The Corporation of the Town of Ajax (“Ajax”); The Corporation of the Township of Brock (“Brock”); The Corporation of the Municipality of Clarington (“Clarington”); The Corporation of the City of Oshawa (“Oshawa”); The Corporation of the City of Pickering (“Pickering”); The Corporation of the Township of Scugog (“Scugog”); The Corporation of the Township of Uxbridge (“Uxbridge”); and The Corporation of the Town of Whitby (“Whitby”). At its meeting on 31 January 2024, Durham Regional Council endorsed the recommendations in Report #2024-COW -3 to create a Region-wide Family Physician Recruitment Program to attract and retain family medicine trainees and family physicians to Durham and to fund the Durham Ontario Health Team to hire a full-time permanent family physician recruiter (the “Program”),with core funding expenses shared between the Region and local municipalities, and to report on that arrangement to Durham Regional Council. The proposed funding model for the Program between 1 July 2024 and 31 December 2027 provides for a maximum cost of $55,000 in 2024, increasing to $225,000 in 2025 and indexed to inflation plus 2 per cent in 2026 and 2027. Each municipality recognizes that its council approval may be required to take part in such a cost-sharing arrangement, and that any arrangement that results from these discussions might take the form of a binding agreement between one or more parties and the Durham Ontario Health Team. 1. The parties acknowledge that the discussions and their respective plans are preliminary. Each party’s participation in this cost-sharing arrangement is subject to the condition that that party receives its council’s approval or delegated authority for (a) this memorandum of understanding; (b) a funding agreement with the Durham Ontario Health Team, and (c) budget approval in each of 2024, 2025, 2026 and 2027 for any funds disbursed or scheduled to be disbursed. 2. The parties intend to fund the Program costs according to the table attached to this memorandum of understanding (attachment 1). The Program cost on which each party’s proportionate share is based will be adjusted as of 1 January 2026 and as of 1 January 2027, calculated according to this formula: Page 152 Attachment 1 to FSD-029-24 2 N = (1+ (I + 2 %)) × 225,000 In this formula, the following applies: N = the total Program cost, in dollars I = the average year-over-year percentage growth in the all-items Consumer Price Index for Ontario published by Statistics Canada for the then most recent year 3. The parties intend to discuss, among other things, how that Program’s success will be measured, the contents of a binding agreement with the Durham Ontario Health Team, and oversight of that Program and that binding agreement. 4. The parties intend that any discussions will take place in good faith. Each party shall make reasonable efforts to engage in the discussions competently and promptly. 5. The parties are not prohibited from negotiating with from anyone else or from engaging in their own family physician recruitment strategies, whether existing or new. 6. The parties may share that a partnership is being explored related to the Program as part of community engagement and public presentations. 7. Each party will be responsible for its own expenses related to this memorandum of understanding. 8. No party will be liable to any other party for any loss that other party suffers because of this memorandum of understanding or any failure to enter a binding agreement with the Durham Ontario Health Team. 9. This memorandum of understanding will become effective for each party when that party has signed it. Each party may sign this memorandum using an electronic or handwritten signature, which are of equal effect. If the parties sign this memorandum of understanding in several counterparts, each will be deemed an original but all counterparts together will constitute one instrument. 10. If a party signs this memorandum of understanding but fails to date their signature, the date the Region receives the signing party’s signature will be deemed to be the date the signing party signed this memorandum of understanding. 11. This memorandum of understanding will continue to apply to a party until the earlier of (1) the date that party notifies the other parties that it no longer wishes to proceed with the Program, (2) that party enters a binding agreement for the Program, and (3) 31 December 2027. Signature pages follow. Page 153 Attachment 1 to FSD-029-24 3 The Regional Municipality of Durham Date: ________________________, 2024 By: __________________________ Nancy Taylor Commissioner of Finance Authorized by: #2024-COW -3 The Corporation of the Township of Ajax Date: ________________________, 2024 By: __________________________ Name: Title: Authorized by: The Corporation of the Township of Brock Date: ________________________, 2024 By: __________________________ Name: Title: Authorized by: The Corporation of the Municipality of Clarington Date: ________________________, 2024 By: __________________________ Name: Title: Authorized by: The Corporation of the City of Oshawa Date: ________________________, 2024 By: __________________________ Name: Title: Authorized by: Page 154 Attachment 1 to FSD-029-24 4 The Corporation of the City of Pickering Date: ________________________, 2024 By: __________________________ Name: Title: Authorized by: The Corporation of the Township of Scugog Date: ________________________, 2024 By: __________________________ Name: Title: Authorized by: The Corporation of the Township of Uxbridge Date: ________________________, 2024 By: __________________________ Name: Title: Authorized by: The Corporation of the Town of Whitby Date: ________________________, 2024 By: __________________________ Name: Title: Authorized by: Page 155 Attachment 1 to FSD-029-24 5 Attachment 1: Proposed Funding Model Proposed Funding Model Municipality Population1 Pop. % Funding % 2H 2024 ($) 2025 ($) 2026 ($) 2027 ($) Total Program Cost $ 55,000 $ 225,000 225,000 × (CPI + 2%) Prior Yr × (CPI + 2%) Durham 748,495 100% 50.0% 27,500 112,500 Ajax 135,930 18% 9.1% 4,994 20,430 Brock 13,760 2% 0.9% 506 2,068 Clarington 107,770 14% 7.2% 3,960 16,198 Oshawa 187,080 25% 12.5% 6,873 28,118 Pickering 106,505 14% 7.1% 3,913 16,008 Scugog 22,505 3% 1.5% 827 3,383 Uxbridge 22,605 3% 1.5% 831 3,398 Whitby 152,340 20% 10.2% 5,597 22,897 1 Source: #2023-INFO-102, Monitoring of Growth Trends, File: D01-02-01, as of May 2023 Page 156 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 3, 2024 Report Number: FSD-030-24 Submitted By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology Reviewed By: Mary-Anne Dempster, CAO Resolution#: Authored by: Paul Davidson, Manager of Financial Planning/Deputy Treasurer File Number: By-law Number: Report Subject: 2024 Asset Management Plan Update Recommendations: 1. That Report FSD-030-24, and any related delegations or communication items, be received; 2. That the Municipality’s Draft 2024 Asset Management Plan, attached to Report FSD- 030-24, as attachment #1, be approved; 3. That the final 2024 Asset Management Plan be placed on the Municipal website , as required by the legislation, and, if requested, a copy be forwarded to the Province of Ontario; and 4. That all interested parties listed in Report FSD-030-24, and any delegations be advised of Council’s decision. Page 157 Municipality of Clarington Page 2 Report FSD-030-24 Report Overview This report provides an overview of the Municipality’s 2024 Asset Management Plan (AMP), as presented in Attachment #1, which has been prepared in accordance with O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure. The attached plan includes summary level information on all non-core municipal assets, such as age, condition, and replacement cost, as well as an estimate of the annual capital lifecycle costs required to maintain assets at their current level of service . The Municipality’s core assets (as defined by O. Reg. 588/17) are not included in this plan as they were the subject of the Municipality’s 2022 Asset Management Plan. The regulation requires that the 2024 Asset Management Plan be approved by Council by July 1, 2024. 1. Background 1.1 In 2016, the Provincial Government passed the Infrastructure for Jobs and Prosperity Act, which gave the province the authority to guide municipal asset management planning through regulation. This was followed, in late 2017, by the introduction of O. Reg. 588/17, which established the standard content to be included in all Asset Management Plans in the Province of Ontario. 1.2 Although the introduction of O. Reg. 588/17 included all the various provincial asset management requirements, the legislation's implementation has followed a phased approach. The table below provides the various implementation dates and the associated requirements of the legislation. Table 1: Asset Management Requirements and Implementation Dates Implementation Date Requirement July 1, 2019 Municipalities to adopt a Strategic Asset Management Policy. July 1, 2022 Municipalities to complete AMP for core assets, as defined by the Province. July 1, 2024 Municipalities to complete AMP for remaining non-core assets. July 1, 2025 Municipalities to develop a funding strategy and proposed service levels for all assets. Page 158 Municipality of Clarington Page 3 Report FSD-030-24 1.3 In 2019, Council approved the Municipality’s Strategic Asset Management Policy in accordance with O. Reg 588/17. The policy outlines a set of guiding principles for asset management priority setting, planning and investment . The policy has now been updated to reflect minor legislation changes and to conform with the Municipality’s new corporate policy template. The updated policy has been included in Report FSD-027-24. 1.4 In 2022, Council endorsed the Municipality’s first AMP under O. Reg 588/17. T his AMP focused exclusively on core assets, as defined by the legislation, which includes roads, bridges, culverts, and stormwater infrastructure. 1.5 The AMP for the remaining non-core assets, provided in Attachment #1, is intended to satisfy the provincial requirement for July 1, 2024. Staff are now planning for the completion of the final iteration of the AMP, which includes proposed levels of service and a financing strategy for all assets, for presentation to Council in June 2025. 2. 2024 Asset Management Plan Overview 2.1 The purpose of the 2024 AMP is to provide summary-level data on the state of the Municipality’s non-core infrastructure, including current replacement costing and current condition ratings. The summary level data is then used to establish a current service level threshold, for which a capital forecast must be prepared to estimate the annual costs associated with maintaining that service level over the next ten years. 2.2 The plan does not provide any funding recommendations but rather is intended to provide an estimate of the annual capital costs required to maintain the current level of service for our assets. The next iteration of the AMP is when a financing strategy is required. This financing strategy will pertain to both the core and non-core assets. 2.3 All non-core municipal assets have been grouped into different asset categories. The asset categories were determined by grouping similar assets with similar levels of service. The AMP includes both a summary chapter, which represents an aggregated summary of all asset categories, and individual chapters pertaining to each specific asset category. The chapters for each asset category provide a more granular view by summarizing data down to the asset sub-type level. 2.4 It is important to note that the AMP represents a snapshot in time and is based on both a series of assumptions and the best information available to staff at the time of development. As these assumptions change over time, the underlying data will be updated and refined to ensure the information remains relevant and accurate for future capital budgeting and long-term financial planning purposes. Page 159 Municipality of Clarington Page 4 Report FSD-030-24 2.5 The plan also includes service level metrics that quantify the current level of service related to specific service level attributes. Summary of Non-core Infrastructure 2.6 The table below provides summary level data for each asset category included in the AMP. The summary level data includes average age, average condition, and total replacement cost for all of the underlying assets within the various asset categories. Table 2: Summary Level Data for All Non-core Asset Categories Asset Category Quantity Average Age (Years) Replacement Cost ($2024) Average Condition (ULC%) Average Condition State Corporate Facilities1 10 82.4 $122,579,000 0.88% Good Corporate Fleet 209 9.0 44,316,000 84% Good Emergency Services 779 6.2 2,578,000 57% Good Information Technology 587 9.3 6,080,000 50% Good Parking Infrastructure 236 21.7 27,875,000 82% Good Parks 629 20.5 61,765,000 84% Good Recreation, Community, and Culture1 172 48.1 461,704,000 0.11% Good Transportation Infrastructure2 10,267 21.8 215,671,000 29% Very Good Total3 12,889 41.8 $942,568,000 50% Good 1. Average condition for Corporate Facilities and Recreation, Community, and Culture are based on a Facilities Condition Index (FCI) as opposed to the Useful Life Consumption percentage (ULC%). 2. Quantity of Transportation Infrastructure also includes a combined 385.6 km’s of sidewalk and guiderails. 3. Total Average Condition of 50% excludes Corporate Facilities and Recreation, Community, and Culture as these assets utilize the FCI condition methodology. These assets are assessed as “Good”, on average, meaning the total average condition state would remain as “Good” if these assets were included. 2.7 The Municipality’s asset inventory includes over 12,000 individual non-core assets, with an estimated total current replacement cost of over $942 million. Corporate Facilities and Recreation, Community, and Culture represent over 60 per cent of the tota l replacement cost. Transportation Infrastructure also represents a large portion of total replacement costs as this asset category includes all sidewalks, streetlights, and guiderails. Page 160 Municipality of Clarington Page 5 Report FSD-030-24 2.8 The Corporate Facilities asset category includes only the facilities used for public administration and service delivery, such as the Municipal Administration Centre, fire stations, operations depots, and the Animal Services Building. The facilities used for community programming, such as arenas, aquatic centres, and community halls, are included in the Recreation, Community, and Culture asset category. 2.9 The total replacement cost for each asset category represents an aggregated estimate of the cost to fully replace each asset within the specific category. Full replacement costs include construction, acquisition, project management, contingencies, and, in some cases, removal of the existing asset. Replacement costing is provided in current (2024) dollars and has been estimated using a combination of recent tenders and staff estimates. Average Age and Condition 2.10 The average age and condition of each asset category represents a weighted average, based on replacement cost, of the average age and condition of the various asset types within each asset category. The total average age and condition represents a weighted average of the various asset categories, based on replacement cost . 2.11 The condition for most assets is assessed using a Useful Life Consumption percentage (ULC%). The ULC% is derived by dividing the assets age by its estimated useful life to determine the percentage of its estimated useful life that has been consumed . 2.12 Facilities assets use the Facilities Condition Index (FCI) methodology, which represents the cost of remedying maintenance deficiencies as a percentage of the current replacement value. The FCI condition assessments were determined through Building Condition Assessments that were completed by an external engineering consultant in late 2023 and early 2024. 2.13 The average condition for all asset categories is rated as “Good”, meaning, on average, the Municipality’s assets are in a state of good repair. This condition rating is based on the current condition rating methodology, which relies on age and visual inspections. Currently, very few non-core assets (outside of Emergency Services) are subject to routine physical condition inspections. 2.14 It is important to note that, although the average condition of each asset category is rated as Good or Very Good, the average condition represents a weighted average of the various underlying assets within the category. The actual condition rating for each individual underlying asset ranges from Very Good to Very Poor. The figure below provides the condition distribution for all underlying assets, based on the quantity of assets within each asset category. Page 161 Municipality of Clarington Page 6 Report FSD-030-24 Figure 1 – Asset Condition Distribution Levels of Service Metrics 2.15 The 2024 AMP includes specific levels of service metrics, for each asset category, that attempt to quantify current service levels and customer expectations. The metrics are related to specific service level attributes that are important to the organization. The metrics provide a baseline by quantifying the current service level standard. 2.16 These service level metrics will be reviewed as part of the next iteration of the AMP, where proposed service level targets will need to be established. Staff will undertake a review of industry best practice when setting proposed service level targets. This will ensure service levels are set such that they are both financially sustainable and are meeting the expectations of residents. Lifecycle Management Strategies and Costing 2.17 Lifecycle management strategies include the planned actions required to maintain assets at their current level of service. These actions include inspection, 33% 70% 29% 35% 27% 27% 98% 100% 24% 23% 32% 36% 32% 40% 2% 5% 1% 5% 6% 6% 2% 11% 4% 13% 8% 11% 16% 27% 1% 21% 15% 23% 15% 0%10%20%30%40%50%60%70%80%90%100% Corporate Facilities Corporate Fleet Emergency Services Information Technology Parking Parks Recreation, Community,… Transportation Very Good Good Fair Poor Very Poor Page 162 Municipality of Clarington Page 7 Report FSD-030-24 repair/maintenance, replacement, expansion, and disposal. The AMP includes only the capital costs associated with these activities, as the operating costs are not required to achieve compliance with the legislation. 2.18 Regarding lifecycle costing, the current level of service is defined as the capital costs required to maintain the current overall asset condition distribution and maintain the overall dollar value of the backlog at current levels. 2.19 The figure below provides the estimated annual capital costs required to maintain all non-core assets, at the current level of service, over the next ten years. All costing in future years (2025-2033) is provided in real, inflation adjusted dollars. This is to provide as accurate an estimate as possible of the anticipated costs each year. Figure 2 - Annual Lifecycle Costing ($,000’s) – All Non-core Asset Categories 2.20 The estimated cost of capital lifecycle activities over the 2024-2033 period is approximately $150 million. The total estimated cost, including all the costs included in the backlog, is approximately $183.7 million. 2.21 The backlog represents the total estimated replacement cost of assets that, according to their age and estimated useful life, have surpassed their anticipated year of replacement. It is important to note that items in the backlog may not necessarily require immediate attention as they have likely been maintained through regular repair and $33,824 $6,692 $18,818 $13,041 $13,976 $18,037 $8,602 $13,970 $16,060 $12,038 $28,631 $149,866 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Page 163 Municipality of Clarington Page 8 Report FSD-030-24 maintenance. The backlog in Figure 2 has been reduced to include only the assets with a reasonable possibility of requiring replacement within the ten-year forecast period. Average Annual Lifecycle Costing 2.22 The annual lifecycle costs, as presented in Figure 2, can vary significantly from year-to- year. Figure 3 smooths out the variation by determining the average annual lifecycle cost of maintaining the current level of service over the forecast period. The average annual costs are spread over the 2025-2033 period and are presented in real, inflation- adjusted dollars. Figure 3 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) 2.23 The average annual costs presented in Figure 3 represent the average annual costs of maintaining the current level of service over the forecast period. That is, the average annual costs to ensure the current overall asset condition distribution remains relatively constant and that the overall dollar value of the backlog remains constant over the forecast period. 2.24 The average annual costs are also net of any costs related to activities that have already been budgeted. Some lifecycle activities have already been budgeted but have $17,332 $8,217 $13,950 $17,977 $8,602 $13,970 $16,060 $12,038 $28,625 $13,004 $13,521 $14,060 $14,620 $15,202 $15,807 $16,437 $17,092 $17,774 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Page 164 Municipality of Clarington Page 9 Report FSD-030-24 not yet been performed; therefore, these items remain outstanding lifecycle activities in the AMP. 2.25 The AMP also provides alternative lifecycle costing scenarios that involve a more aggressive approach to addressing the backlog. Figure 4 compares the total cost of these scenarios, over the 2025-2033 period, with the total cost to maintain the current level of service. 2.26 One alternative scenario provides the average annual cost of reducing the overall size of the backlog by 50 per cent over the forecast period. The other scenario provides the average annual cost of eliminating the entire backlog over the forecast period. Both scenarios would result in an increased level of service as the condition distribution of the assets would significantly improve. Figure 4 – Total Lifecycle Cost Comparison, 2025-2033 ($,000’s) Future Asset Management Priorities 2.27 Upon approval of the 2024 AMP, staff will begin working towards completing the next iteration of the plan for presentation to Council in June 2025. As previously mentioned, this next iteration will include the proposed level of service targets and a financing strategy that provides for both core and non-core assets. $137,516 $155,399 $175,347 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 Current Service Level Reduce Backlog Eliminate Backlog Page 165 Municipality of Clarington Page 10 Report FSD-030-24 2.28 Staff will also begin developing an inventory of natural assets that can be included in future AMPs. Currently, the Municipality only maintains an inventory of engineered assets. 2.29 Once the remaining iterations have been completed by the legislative deadlines, staff will undertake work to consolidate all plans into a single, comprehensive AMP, that includes all assets owned and operated by the Municipality. The consolidated plan will include updated asset inventory information for all assets, along with updated lifecycle costing and a corresponding financing strategy. Next Steps 2.30 Upon the draft's approval by Council, the Municipality is required to post the final published version of the AMP on its public website and, if requested, provide a copy directly to the Province of Ontario. 2.31 Prior to final publication, staff will complete any additional corporate branding and accessibility changes required to the draft. 3. Financial Considerations 3.1 The costs included in the AMP represent an estimate of the annual costs required to maintain the Municipality’s non-core assets at their current level of service in real, inflation-adjusted dollars. 3.2 The AMP does not provide any funding recommendations based on the costs included in the plan. The purpose is to simply identify the costs. Any funding decisions resulting from this plan must be considered as part of the annual budget process. 3.3 The Municipality’s non-core assets have an estimated replacement cost of over $942 million, with an estimated average annual requirement of over $13 million ($2025) to maintain the current level of service. The average condition for the Municipality’s assets is rated as Good, which requires a significant investment to maintain. The next iteration will provide Council with options to set the formal levels of service that assets will be managed to, which will balance the financial resources required and expected level of service for these assets. 4. Strategic Plan The 2024 Asset Management Plan supports strategic plan priority L.2.5: Maintain, protect and invest in Municipal infrastructure and assets. Page 166 Municipality of Clarington Page 11 Report FSD-030-24 5. Concurrence Not Applicable. 6. Conclusion The Municipality’s 2024 Asset Management Plan, as presented in Attachment #1, has been developed to meet the legislative requirements established in O. Reg. 588/17. The document provides summary-level data on all non-core assets within the Municipality’s asset inventory and estimates the capital costs of maintaining these assets, at their current level of service, over the next ten years. As part of the legislation, Council must approve the attached plan by July 1, 2024. Staff Contact: Paul Davidson, Manager of Financial Planning/Deputy Treasurer, 905-623-3379 ext. 2607 or PDavidson@clarington.net. Attachments: Attachment 1 – 2024 Asset Management Plan Interested Parties: There are no interested parties to be notified of Council's decision. Page 167 Asset Management Plan 2024 Municipality of Clarington Attachment 1 to FSD-030-24 Page 168 Asset Management Plan 2024 | 2 Table of Contents 1. Executive Summary 2. Introduction 3. Summary of Non-core Infrastructure Assets 4. Corporate Facilities 5. Corporate Fleet 6. Emergency Services 7. Information Technology 8. Parking Infrastructure 9. Parks 10. Recreation, Community, and Culture 11. Transportation Infrastructure Attachment 1 to FSD-030-24 Page 169 Asset Management Plan 2024 | 3 Executive Summary 01 Attachment 1 to FSD-030-24 Page 170 Asset Management Plan 2024 | 4 Overview The 2024 Asset Management Plan (AMP) has been completed in accordance with provincial regulation O. Reg. 588/17, which establishes the standard content that must be included in all Asset Management Plans in the Province of Ontario. This plan provides summary level data on all the non-core assets owned and operated by the Municipality. The Municipality’s core assets, as defined by O. Reg. 588/17, include roads, bridges, culverts, and stormwater. All other assets are considered non-core for the purposes of asset management planning. The purpose of the AMP is to identify the capital costs required to maintain current service levels over the next ten years. This AMP does not provide any funding recommendations as the legislation only requires that the annual lifecycle costs be identified for the next ten years. Funding recommendations will be provided in the next iteration of the AMP, which will include a financing strategy and proposed levels of service. This next iteration is required for completion by July 1, 2025. The AMP is divided into several chapters, each providing a specific set of information related to different aspects of the plan. The Introduction chapter provides a contextual overview of asset management planning, including the purpose of the AMP and a brief summary of the provincial legislation. The introduction also provides the growth forecast, risk assessment, and discussion of climate considerations as required under the legislation. The Summary of Non-core Infrastructure Assets chapter summarizes the asset information for all asset categories to provide an aggregated summary of all non-core assets owned by the Municipality. This chapter also provides greater context on the various components of the AMP, including a discussion on the embedded assumptions and methodologies. The AMP also includes individual chapters for each of the asset categories included in the plan. The individual chapters include a greater level of detail by providing summary level information down to the asset sub-type level. These chapters also define some of the alternative assumptions and methodologies specific to the corresponding asset category. The Summary of Non-core Infrastructure Assets chapter is essentially an aggregated summary of the chapters related to the individual asset categories. Attachment 1 to FSD-030-24 Page 171 Asset Management Plan 2024 | 5 Summary of Non-core Assets The table below provides the summary level data for each non-core asset category included in the AMP. The summary level data includes average age, average condition, and total replacement cost for all the underlying assets within the various asset categories. Asset Category Quantity Average Age (Years) Replacement Cost ($2024) Average Condition (ULC%) Average Condition State Corporate Facilities1 10 82.4 $122,579,000 0.88% Good Corporate Fleet 209 9.0 44,316,000 84% Good Emergency Services 779 6.2 2,578,000 57% Good Information Technology 587 9.3 6,080,000 50% Good Parking Infrastructure 236 21.7 27,875,000 82% Good Parks 629 20.5 61,765,000 84% Good Recreation, Community, and Culture1 172 48.1 461,704,000 0.11% Good Transportation Infrastructure2 10,267 21.8 215,671,000 29% Very Good Total3 12,889 41.8 $942,568,000 50% Good 1. Average condition for Corporate Facilities and Recreation, Community, and Culture are based on a Facilities Condition Index (FCI) as opposed to the Useful Life Consumption percentage (ULC%). 2. Quantity of Transportation Infrastructure also includes a combined 385.6 km’s of sidewalk and guiderails. 3. Total Average Condition of 50% excludes Corporate Facilities and Recreation, Community, and Culture as these assets utilize the FCI condition methodology. These assets are assessed as “Good”, on average, meaning the total average condition state would remain as “Good” if these assets were included. Attachment 1 to FSD-030-24 Page 172 Asset Management Plan 2024 | 6 The average age and condition for each asset category represents a weighted average, based on replacement cost, of the average age and condition of the various asset types within each asset category. The total average age and condition for all non-core assets represents a weighted average of the various asset categories, based on replacement cost. The total replacement cost for each asset category represents the sum of the replacement costs of all the underlying assets within the category. Replacement costing reflects an estimate of the full replacement of each asset and was derived using a combination of recent tenders and staff estimates. The condition assessments for Corporate Facilities and Recreation, Community, and Culture were determined using a Facilities Condition Index (FCI) methodology. The FCI reflects the cost of remedying maintenance deficiencies as a percentage of the current replacement value. The FCI condition assessments were determined through Building Condition Assessments that were completed by an external engineering consultant in late 2023 and early 2024. The remaining assets use a Useful Life Consumption percentage (ULC%) methodology to derive a condition rating. The ULC% is calculated by dividing the assets age by its estimated useful life to determine the percentage of its estimated useful life that has been consumed. This methodology was used because most assets are not routinely subject to physical condition assessments. Although the average condition of the Municipality’s non-core assets is rated as Good, the condition rating for each individual underlying asset ranges from Very Good to Very Poor. The figure below provides the condition distribution for all underlying assets, based on the quantity of assets within each asset category. Attachment 1 to FSD-030-24 Page 173 Asset Management Plan 2024 | 7 Lifecycle Management Strategies and Costing According to O. Reg. 588/17, asset management plans must identify the set of planned actions required to maintain assets at their current level of service and provide a ten-year capital plan that forecasts the costs associated with the lifecycle management strategies over the next ten-years. 33% 70% 29% 35% 27% 27% 98% 100% 24% 23% 32% 36% 32% 40% 2% 5% 1% 5% 6% 6% 2% 11% 4% 13% 8% 11% 16% 27% 1% 21% 15% 23% 15% 0%10%20%30%40%50%60%70%80%90%100% Corporate Facilities Corporate Fleet Emergency Services Information Technology Parking Parks Recreation, Community, and Culture Transportation Very Good Good Fair Poor Very Poor Attachment 1 to FSD-030-24 Page 174 Asset Management Plan 2024 | 8 Municipal assets undergo a number of lifecycle activities throughout their lifecycle; however, the lifecycle costing in the AMP only includes the activities that form a capital cost to the Municipality (i.e.: the replacement of the assets). The regulation states that only capital costs and “significant” operating costs should be captured in the AMP. However, the regulation does not define a “significant operating cost”. Therefore, no operating costs have been deemed significant for the purpose of this AMP. This operating cost assumption will be reevaluated for the next iteration of the AMP when full lifecycle costing, beyond a ten-year forecast horizon, will be identified. The figure below identifies the estimated annual cost, over the next ten years, of all capital lifecycle activities required to maintain all non-core assets at the current level of service. The estimated cost of lifecycle activities, for the 2024-2033 forecast period, is approximately $150 million. $33,824 $6,692 $18,818 $13,041 $13,976 $18,037 $8,602 $13,970 $16,060 $12,038 $28,631 $149,866 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Attachment 1 to FSD-030-24 Page 175 Asset Management Plan 2024 | 9 The costs in the figure above also include approximately $34 million in backlog costs. The backlog represents the total estimated replacement cost of assets that, according to their age and estimated useful life, have surpassed their scheduled year of replacement, and likely require replacement sometime within the ten-year forecast period. It is important to note that items appearing in the backlog may not necessarily require immediate attention. These assets have likely been maintained through general maintenance and repair and may still be performing their functional duty at an acceptable level. Since these assets have surpassed their planned year of replacement, it is difficult to predict in which year these assets will now require replacement. These assets will sit in the backlog until such time as they are replaced. The backlog includes only items that have a reasonable likelihood of requiring replacement within the ten-year forecast period. Items that are beyond their estimated useful life but are not planned for replacement over the forecast period have been removed from the backlog. Average Annual Lifecycle Costing The costs identified in the figure above represent the estimated annual gross cost of capital lifecycle activities over the next ten years. The amount of lifecycle activities varies on an annual basis, leading to significant variances in annual costs. In an effort to eliminate the significant variances, the AMP provides three scenarios for averaging out the total gross costs over the 2025-2033 period. Averaging out the costs ensures that the annual costs are increasing at a linear rate. The table below provides the average annual costs for each of the three scenarios. All of the scenarios remove any costs that have already been included in previous municipal budgets. However, the three scenarios differ in their approach to addressing the backlog. Attachment 1 to FSD-030-24 Page 176 Asset Management Plan 2024 | 10 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Current Service Level $13,004 $13,521 $14,060 $14,620 $15,202 $15,807 $16,437 $17,092 $17,774 $137,516 Reduce Backlog $14,692 $15,278 $15,887 $16,520 $17,179 $17,864 $18,576 $19,317 $20,087 $155,399 Eliminate Backlog $16,573 $17,235 $17,923 $18,639 $19,384 $20,158 $20,963 $21,800 $22,670 $175,347 The “current service level” scenario represents the status quo and assumes the overall dollar value of the backlog will remain constant throughout the forecast period. Under this scenario, the overall dollar value of the backlog will remain constant, but the projects within the backlog could change. This scenario also assumes that the current asset condition distribution would remain relatively constant throughout the forecast period. The “reduce backlog” scenario identifies the estimated average annual lifecycle cost under the assumption that 50 per cent of the current backlog would be eliminated over the forecast period. This scenario provides for a gradual reduction in the dollar value of the backlog over time. This scenario would improve the asset condition distribution by transitioning more assets into the Very Good to Good condition rating. The “eliminate backlog” scenario identifies the estimated average annual lifecycle cost under the assumption that the entire backlog would be eliminated over the ten-year forecast period. This would significantly improve the asset condition distribution by transitioning most assets into the Very Good to Good condition rating. Inflation Assumption Future costing throughout the forecast period has been inflated at a rate of four per cent per year. This is to ensure that future costs represent a reasonable estimate of the actual cost expected in that year. The four per cent inflation rate is based on a historical average of the non-residential Building Construction Price Index. Attachment 1 to FSD-030-24 Page 177 Asset Management Plan 2024 | 11 Introduction 02 Attachment 1 to FSD-030-24 Page 178 Asset Management Plan 2024 | 12 Overview The 2024 Asset Management Plan (AMP) is a comprehensive document that provides a long-term plan for investment in non-core capital infrastructure assets. Non-core capital assets include all assets that are not considered “core” for asset management purposes. Core assets, which were the subject of the Municipality’s previous AMP, include Roads, Bridges, Culverts, and Stormwater assets. The AMP for the Municipality’s core assets was presented to Council in June 2022. This iteration provides a long-term capital forecast for the replacement and financial management of the Municipality’s existing non-core infrastructure assets. This long-term capital forecast forms one of the pillars of the Municipality’s comprehensive long-term financial plan. The purpose of the AMP is to identify the capital costs required to maintain the current service delivery standards of the Municipality’s non-core assets over the next ten years. The AMP identifies only the capital costs of maintaining or replacing the assets and does not include the operating costs associated with general maintenance and repair. The plan also does not provide a recommendation for funding the capital costs involved in the plan, but rather identifies only the estimated capital costs required to maintain the Municipality’s non-core assets, at their current level of service, over a ten-year forecast horizon. Full lifecycle costing (i.e. beyond a ten-year forecast horizon), along with a corresponding funding strategy, will be included in the next iteration of the AMP, which is required by July 1, 2025. The 2024 AMP aims to capture as many non-core asset types and categories as possible and uses the best information available to forecast the capital financing needs of these assets over the next ten years. A variety of approaches were used to estimate the current state of the Municipality’s infrastructure, along with the estimated costs to maintain these assets over the long-term. The AMP is intended to be a tool for staff and Council to guide long-term financial planning decisions and will assist in many areas of financial planning, including capital budgeting and long-term financial forecasting. Asset management planning has been identified as a key component of the Clarington Strategic Plan. The Municipality has identified the AMP as a strategic action required to address the priority of maintaining, protecting and investing in municipal infrastructure and assets. Attachment 1 to FSD-030-24 Page 179 Asset Management Plan 2024 | 13 It is important to note that the AMP represents a snapshot in time and is based on both a series of assumptions and the best information available to staff at the time of development. As these assumptions change over time, the underlying data will be updated and refined to ensure the information remains relevant and accurate. Legislative Context for Asset Management Planning Asset management planning has become a legislated responsibility for municipalities in the Province of Ontario. The legislative context and requirements have significantly evolved over the past decade. In 2016, the Provincial Government passed the Infrastructure for Jobs and Prosperity Act, which gave the Province the authority to guide municipal asset management planning through regulation. This was followed, in late 2017, by the introduction of O. Reg. 588/17, which established the standard content to be included in all Asset Management Plans in the Province of Ontario. Specifically, the regulation requires the following components: • Development of a Strategic Asset Management Policy. • Infrastructure asset inventory, including summary level data on each asset category. • Defined current and proposed levels of service. • Lifecycle activities undertaken to achieve the defined levels of service. • Financial strategy to support the levels of service and lifecycle activities. Although all components were included in O. Reg. 588/17, the Province is utilizing a phased approach for the implementation of the different components. The following table provides the implementation deadlines for the various components listed above: Table I – Asset Management Plan Implementation Deadlines Implementation Date Requirement July 1, 2019 Municipalities to adopt a Strategic Asset Management Policy. July 1, 2022 Municipalities to complete AMP for core assets, as defined by the Province. July 1, 2024 Municipalities to complete AMP for remaining non-core assets. July 1, 2025 Municipalities to develop a funding strategy and proposed service levels for all assets. Attachment 1 to FSD-030-24 Page 180 Asset Management Plan 2024 | 14 Clarington completed the core asset AMP in 2022 and has now completed the iteration related to non-core assets. The two plans include all the legislative components required for each implementation date, including a summarized asset inventory, current levels of service metrics, and annualized lifecycle activities. The Municipality is now working towards developing a funding strategy and proposed levels of service targets for all assets, which represent the final components of the provincial asset management requirements. This final component will be completed and presented to Council in June 2025. Strategic Asset Management Policy The Municipality adopted its Strategic Asset Management Policy (G15) in 2019. The policy outlines the commitments and principles that will be considered in the Municipality’s asset management planning. It ensures strategic alignment with the Municipality’s vision of building a sustainable, creative, and caring community. This vision requires the alignment of many initiatives, while ensuring that all existing and planned asset decisions support the recommended levels of service and long-term vision for the community. As per O. Reg. 588/17, the Strategic Asset Management Policy must be reviewed every five years. The Municipality’s policy was reviewed as part of the development of the 2024 AMP and no significant changes to the policy are being proposed. The policy will be reviewed again as part of the 2025 asset management legislative requirements. Any proposed changes stemming from this exercise will be brought to Council in conjunction with the 2025 iteration of the AMP. Asset Management Plan Development Overview The AMP was developed in accordance with O. Reg. 588/17 and is structured to comply with both the legislative requirements contained within the legislation and the Municipality’s Strategic Asset Management Policy. The 2024 AMP includes only non-core assets, as defined by O. Reg. 588/17, which are owned and operated by the Municipality. As mentioned, the Municipality has previously developed an AMP that focused on the core assets of Roads, Bridges and Culverts, and Stormwater. The core asset AMP will need to be reviewed and updated by 2027, in accordance with provincial legislation. Attachment 1 to FSD-030-24 Page 181 Asset Management Plan 2024 | 15 The Municipality’s non-core assets were grouped into different asset categories based on asset characteristics and levels of service expectations. The following table provides the different asset categories, along with a description of the assets included in each category. Table II – Non-core Asset Categories Asset Category Description Corporate Facilities Includes all facilities, owned by the Municipality, that are used for public administration purposes and not for community programming purposes. Corporate Fleet Includes all the vehicles and equipment required to perform the various services provided by the Municipality. This includes fire trucks, snowplows, ice resurfacers, etc. Emergency Services Includes the various assets and equipment used in the delivery of fire and emergency services. Excludes fire stations (Corporate Facilities) and fire vehicles (Corporate Fleet). Information Technology Includes various information technology hardware and software used by the Municipality for service delivery and communication purposes. Parking Infrastructure Includes the assets used in the delivery of parking services throughout the Municipality. Includes parking lots, parking lot lights, centralized parking meters, and Electric Vehicle (EV) chargers. Parks Includes infrastructure used in providing parks services and outdoor recreation activities. Includes playground equipment, sports fields/courts, trails, etc. Cemetery infrastructure, such as columbarium’s, are also included in this asset category. Recreation, Community, and Culture Includes the facilities, owned by the Municipality, that are used for community programming and events. Includes arenas, aquatic centres, community halls, museums, and libraries. Also included are various pieces of fitness and recreation equipment. Transportation Infrastructure Includes the assets used in the delivery of transportation services, with the exception of the Municipality’s Road network. Includes traffic lights, sidewalks, guiderails, streetlights, etc. Attachment 1 to FSD-030-24 Page 182 Asset Management Plan 2024 | 16 Developing the AMP was a collaborative effort between the Finance and Technology Department and the various Departments and Divisions that own and operate the assets used in the delivery of municipal services. Collaboration with service area experts was a key component of ensuring the plan includes the best information available. Asset Management Plan Structure The plan has been designed to emphasize the asset categories by providing dedicated chapters for each of the non-core asset categories. Each asset category chapter includes separate sections focusing on the various requirements of O. Reg. 588/17, such as State of Local Infrastructure, Levels of Services, and Lifecycle Management Strategies. These chapters provide a higher degree of granularity by summarizing data down to the asset sub-type level and provide insight on specific assumptions and nuances that are unique to the corresponding asset category. The AMP also provides a “Summary of Non-core Infrastructure Assets” chapter that aggregates the information from the individual asset categories to provide insight into the overall state of non-core infrastructure for the Municipality. This chapter provides further information on the legislative requirements for each component of the AMP, along with background information on the general assumptions and methodologies used to derive the data. Risk Assessment The AMP assesses risk as the likelihood of failure, which is quantified through the asset condition rating. The consequence of failure is difficult to quantify and has not been identified in this iteration of the AMP. The identified lifecycle activities have been established based on the likelihood of asset failure as opposed to the consequence of failure. The Municipality is currently undertaking work to define a consequence of failure matrix that could be used to prioritize lifecycle activities in future iterations of the AMP. Currently, asset spending prioritization is done by subject matter experts within the various departments. The AMP identifies the annual costs associated with maintaining and replacing assets based on their likelihood of failure. Individual departments will conduct their own funding assessment as to which projects should be brought forward or pushed back based on the consequence of asset failure. Attachment 1 to FSD-030-24 Page 183 Asset Management Plan 2024 | 17 Growth Considerations The Municipality plans for growth through the development of its Official Plan and associated Secondary Plans. The purpose of the Official Plan is to guide and manage development in the Municipality and includes policies that provide for a more urban, walkable community, with great public spaces and complete streets designed for people. The Municipality uses Development Charges (DC’s), and the associated DC Study, to plan for the infrastructure required to service the increased growth identified through the Official Plan. The Municipality last updated its DC study in 2020 and is currently in the process of developing a new DC Study for implementation in 2025. The 2020 DC Study forecasts population and employment growth out to 2031. The DC Study estimates are provided in Table III below. The population estimates exclude the census undercount, while the employment estimates include both work from home and employees with no fixed place of work. Table III – Population and Employment Estimates – 2020 DC Study Early 2020 Early 2025 Early 2030 Mid 2031 Population 99,289 113,484 129,687 134,941 Employment 30,765 36,178 39,475 40,458 Annualized estimates for the next ten years are provided in Table IV below. The annualized estimates are based on the information from the 2020 DC Study and use the estimated growth rate from 2030-2031 to derive estimates for 2032 and 2033. Table IV – Annualized Population and Employment Estimates (2024 – 2033) 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Population 110,645 113,484 116,725 119,965 123,206 126,446 129,687 134,941 140,195 145,449 Employment 35,095 36,178 36,837 37,497 38,156 38,816 39,475 40,458 41,441 42,424 Attachment 1 to FSD-030-24 Page 184 Asset Management Plan 2024 | 18 The specific types of infrastructure required to service this growth were also included in the 2020 DC Study. The value of infrastructure requirements identified in the 2020 DC Study, which pertain to the assets included in this AMP, are provided in the table below. The estimates reflect totals over the entire DC Study forecast period of 2020 – 2031. The table provides both the actual costs provided in the DC Study ($2020) and an estimate of the value in current dollar terms ($2024). The current estimates are derived by inflating the 2020 costs by the four per cent per year inflation factor used throughout the AMP. Table V – Value of Growth-Related Infrastructure (2020-2031) – 2020 DC Study DC Service Area DC Study Cost ($2020) Estimated Current Cost ($2024) Fire Protection Services $11,483,000 $13,433,000 Parks and Recreation 160,833,000 188,152,000 Library Services 11,072,000 12,953,000 Total $183,388,000 $214,538,000 Annualized growth-related infrastructure cost estimates, for the next ten years, have been provided in the table below. These estimates are based on the information provided above from the 2020 DC Study. The DC Study only projects infrastructure costs out to 2029 for the DC service areas related to the non-core infrastructure assets. The DC Study projections were used to derive estimates for the remaining forecast years of 2030 – 2033. Table VI – Annualized Growth-Related Infrastructure Costs ($000’s) (2024 – 2033) 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2024-2033 Total $20,663 $7,477 $47,082 $12,680 $14,681 $38,568 $4,820 $6,342 $8,680 $12,355 $173,348 Attachment 1 to FSD-030-24 Page 185 Asset Management Plan 2024 | 19 As the costs in the table above form part of the DC Study, the initial cost of infrastructure would be partially funded through DC’s. However, the replacement of this infrastructure would not be DC eligible and would need to be covered through non-DC sources. Some of the assets included in the costs above have likely been acquired and would be included in the AMP. However, assets that have not yet been acquired are not represented as the AMP deals exclusively with the maintenance and replacement of current infrastructure. The table demonstrates that growth-related infrastructure, although partially funded by DC’s for the initial acquisition, also have significant replacement costs that need to be funded. The funding for the replacement of growth-related infrastructure will be planned through capital budgeting and long-term capital forecasting. Climate Change Considerations Climate change considerations have been incorporated in the AMP, where possible, through the estimated replacement costing of the assets. Replacement costing is based on the Municipality’s current standards for asset acquisition and functionality. For example, replacement costing for fleet assets assume electric vehicle replacement, where possible, while replacement costing for lighting luminaires assume LED replacement. In March 2020, the Municipality of Clarington joined over 400 Canadian municipalities and 1,300 local governments by declaring a climate emergency. By declaring a climate emergency, the Municipality acknowledges its leadership role in responding to climate change by reducing Greenhouse Gas (GHG) emissions. Clarington Corporate Climate Action Plan In March 2021, Clarington Council approved the Clarington Corporate Climate Action Plan (CCCAP) to prepare for climate change and reduce the negative impact Municipal service delivery may have on the environment. The CCCAP outlines over one hundred actions the Municipality can take to respond to climate change while adapting services and operations to minimize climate risks. It also sets targets to reduce corporate GHG emissions. The CCCAP sets a target to reduce corporate GHG emissions by 35 per cent by 2030 and achieve net-zero emissions by 2050. The actions in the CCCAP will be considered in all asset replacement activities moving forward. Attachment 1 to FSD-030-24 Page 186 Asset Management Plan 2024 | 20 Green Fleet and Equipment Policy In December 2023, Clarington Council approved the Green Fleet and Equipment Policy. This policy directs staff to prioritize investment in low or zero-emission fleet assets as a means of reducing GHG emissions. As per the Green Fleet and Equipment Policy, the AMP assumes electric replacement for all fleet assets where an electric replacement is available. Currently, electric replacements are available for cars and vans, light-duty trucks, and certain pieces of equipment. The provisions of the Green Fleet and Equipment Policy have been captured in the levels of service indicators for fleet assets by tracking the number of electric vehicles as a percentage of total fleet. Asset Management Planning – Long-term Vision The Municipality will continue working towards satisfying the various legislative components of asset management planning, in accordance with the legislative deadlines provided in O. Reg. 588/17. Once the remaining iterations have been completed by the legislative deadlines, staff will undertake work to consolidate the three separate documents into a single, comprehensive AMP, that includes all assets owned and operated by the Municipality. The consolidated plan will include updated asset inventory information for all assets, along with updated lifecycle costing and a corresponding financing strategy. Future asset management planning will also include the development of a natural asset inventory and the inclusion of natural assets in future plans. Until a comprehensive natural asset inventory is developed, asset management plans will continue to include only engineered assets. Going forward, the underlying asset data will be updated on an annual basis to ensure the information remains relevant and useful. This data will then be used to inform future capital budgeting and forecasting. The development of a single, comprehensive AMP for all assets is intended to form a critical component of the Municipality’s long-term financial plan. Attachment 1 to FSD-030-24 Page 187 Asset Management Plan 2024 | 21 Summary of Non-core Infrastructure Assets 03 Attachment 1 to FSD-030-24 Page 188 Asset Management Plan 2024 | 22 Overview The following sections provide an overview of the various components required under the provincial asset management regulation O. Reg. 588/17. The regulation requires an overview of the state of local infrastructure, including asset age, condition, and replacement cost, along with indicators of current service levels and annual lifecycle costing over a ten-year forecast horizon. The specific information relating to the different asset categories is presented in the corresponding chapter related to the specific asset category. The summary information on the different asset categories has been aggregated into the sections below. The purpose is to provide an overall summary for all non-core assets owned and operated by the Municipality. The sections below also provide further context into the assumptions and methodologies used to derive the data, along with further legislative detail on the various components included in O. Reg. 588/17. State of Local Infrastructure According to O. Reg. 588/17, the following information for each asset category must be identified as an indicator of the state of local infrastructure: •Summary of the assets included in the asset category. •Replacement cost of the assets included in the asset category. •Average age of the assets in the asset category, determined by assessing the average age of the components of the assets. •Information available on the condition of the assets in the category. •Description of the municipality’s approach to assessing the condition of the assets in the category (based on recognized and generally accepted good engineering practices where appropriate). The table below provides the aggregated summary information for the different asset categories included in the AMP. Attachment 1 to FSD-030-24 Page 189 Asset Management Plan 2024 | 23 Table 1 – Average Age, Replacement Cost, and Average Condition – All Non-core Asset Categories Asset Category Quantity Average Age (Years) Replacement Cost ($2024) Average Condition (ULC%) Average Condition State Corporate Facilities1 10 82.4 $122,579,000 0.88% Good Corporate Fleet 209 9.0 44,316,000 84% Good Emergency Services 779 6.2 2,578,000 57% Good Information Technology 587 9.3 6,080,000 50% Good Parking Infrastructure 236 21.7 27,875,000 82% Good Parks 629 20.5 61,765,000 84% Good Recreation, Community, and Culture1 172 48.1 461,704,000 0.11% Good Transportation Infrastructure2 10,267 21.8 215,671,000 29% Very Good Total3 12,889 41.8 $942,568,000 50% Good 1. Average condition for Corporate Facilities and Recreation, Community, and Culture are based on a Facilities Condition Index (FCI) as opposed to the Useful Life Consumption percentage (ULC%). 2. Quantity of Transportation Infrastructure also includes a combined 385.6 km’s of sidewalk and guiderails. 3. Total Average Condition of 50% excludes Corporate Facilities and Recreation, Community, and Culture as these assets utilize the FCI condition methodology. These assets are assessed as “Good”, on average, meaning the total average condition state would remain as “Good” if these assets were included. The majority of asset data, including the inventory, age, and historical costing of assets, has been extracted from the Municipality’s asset management tracking software, CityWide. The Finance and Technology Department maintains the CityWide database and works with other departments to ensure the system is updated when new assets are acquired. The majority of data for Corporate Facilities and Recreation, Community, and Culture (RCC) facilities has been extracted from Building Condition Assessments (BCA’s) that were completed in late 2023 and early 2024. These Attachment 1 to FSD-030-24 Page 190 Asset Management Plan 2024 | 24 BCA’s provide current condition assessments, lifecycle costing, and replacement values. The condition assessments provided in the AMP were directly extracted from the BCA’s. Lifecycle costing for Corporate Facilities and RCC assets were derived from the BCA’s but were adjusted to match the annual inflation assumptions used for all other asset categories. Replacement costs for the AMP were estimated by staff and were derived by applying a current cost per square foot estimate to the size of each facility. This approach was used to better estimate the overall cost associated with the complete reconstruction of each facility. Asset Exclusions The assets included in the AMP represent only the assets that are being actively maintained by the Municipality and are scheduled to be replaced. There are some assets in the municipal inventory that are still in use but are not scheduled to be replaced at the end of their useful life. These assets are typically well beyond their estimated useful life but remain in the asset inventory because they continue to perform some functional duty for the Municipality. These assets have typically already been replaced by newer assets but remain in active service. These assets have been excluded from the AMP to provide a more realistic representation of the state of local infrastructure. Summary of Assets The following table provides the different asset categories included in the AMP, along with the specific asset types included in each category. Each asset type is then further divided into specific asset sub-types. Asset types were determined by grouping similar assets with similar characteristics (e.g. replacement costs, estimated useful lives, and lifecycle activities). Descriptions of the various asset sub-types are included in the individual chapters for each asset category. These descriptions also provide further details on the assets included in any “Miscellaneous” category. Attachment 1 to FSD-030-24 Page 191 Asset Management Plan 2024 | 25 Table 2 – Summary of Asset Types Asset Category Asset Types Asset Sub-Types Corporate Facilities Corporate Facilities Municipal Administration Centre Fire Stations Operations Depots Animal Services Building Corporate Fleet Vehicles Aerials, Pumpers, Tankers Cars and Vans Heavy, Medium, and Light Duty Vehicles Equipment Ice Resurfacers Loaders, Graders, Tractors, Mowers Trailers and Unlicensed Equipment Emergency Services Suppression Gear Bunker Suits and Helmets Self-Contained Breathing Apparatus’ Equipment Suppression Equipment Defibrillators, Pagers, Radios Training Infrastructure Miscellaneous training equipment Information Technology Communications Communication Towers and Wireless Links Phone system Software Software systems Hardware Various hardware (laptops, monitors, etc.) Attachment 1 to FSD-030-24 Page 192 Asset Management Plan 2024 | 26 Asset Category Asset Types Asset Sub-Types Parking Infrastructure Parking Lots Paved and Gravel lots Parking Lot Infrastructure Lights, Central Pay Meters, Electric Vehicle Chargers Parks Play Courts Tennis, Basketball, and Pickleball Courts Play Fields Baseball, Softball, Soccer, Football, and Cricket Fields Lacrosse Bowl Playgrounds Playground/Outdoor Fitness Equipment and Splashpads Park Structures/Amenities Sports field lights and Park lights Park washrooms Shade structures and Miscellaneous structures Trails Park/non-park trails, Waterfront trails, Multi-use paths Miscellaneous Miscellaneous Park assets Recreation, Community, and Culture Facilities Arenas, Aquatic Centres, Indoor Soccer Facility, Community Facilities, Culture Facilities Equipment Fitness and Recreation equipment Transportation Infrastructure Guiderails Steel Beam, Guideposts/Post & Cable, Concrete barriers Sidewalks Concrete and Asphalt Streetlighting Concrete, Wood, Aluminum poles (standard and decorative) LED luminaires (standard and decorative) Traffic Controls Traffic signals and Pedestrian crossings Equipment Radar message boards Attachment 1 to FSD-030-24 Page 193 Asset Management Plan 2024 | 27 Replacement Costing The total replacement cost of all non-core assets owned by the Municipality is estimated at over $942 million (Table 1). The majority of the cost is associated with the various Corporate and RCC facilities. The estimated replacement cost for these facilities is over $580 million, or over 60 per cent of the total cost of non-core asset replacement. Replacement Costing Assumptions Replacement costing generally represents an estimate for the full replacement of an asset. This would include the estimated cost of the tangible asset, along with the costs associated with construction, installation, and removal of the existing asset. All replacement costing has been provided in current (2024) dollars. Replacement costing was derived using recent tenders for similar assets, along with the expertise of staff involved in the purchasing and operation of the assets. When past tenders were used to estimate replacement costing, costs were inflated to best reflect current pricing. Replacement costing for facilities is based on a $750 cost per square foot. This cost was applied to the estimated square footage of each facility (both Corporate and RCC) to derive the full replacement cost. The estimated cost per square foot is based on recent tenders and represents the current cost assumption used by the Municipality’s Facilities Division for capital budgeting purposes. Estimated Replacement Costing – Core and Non-core Assets The total replacement cost of over $942 million refers only to the non-core assets included in this AMP. It is important to note that there are also significant replacement costs associated with the Municipality’s core assets. The core assets of roads, stormwater, bridges, and culverts represent a significant share of the total assets owned and operated by the Municipality. The table below provides the replacement costing for the core assets that was included in the 2022 AMP. The costs in the 2022 AMP were provided in 2020 dollars. The table inflates the costs into current dollars ($2024), using a four per cent per year inflation factor, as a means of estimating the current replacement cost for these assets. Attachment 1 to FSD-030-24 Page 194 Asset Management Plan 2024 | 28 Table 3 – Core Asset Replacement Costs Core Assets 2022 AMP Replacement Cost ($2020) Replacement Cost ($2024) Stormwater Management $188,266,000 $220,245,000 Roads 714,628,000 836,014,000 Bridges and Culverts 200,020,000 233,995,000 Total $1,102,914,000 $1,290,253,000 The total replacement cost for core assets, based on the information from the 2022 AMP and inflating costs into current dollars, is approximately $1.3 billion. The figure below shows the total estimated replacement cost for all Municipal assets, combining the total replacement cost of non-core assets with the estimated current replacement cost for core assets. The addition of the estimated replacement cost of core assets results in a total replacement cost, for all Municipal assets, of over $2.2 billion. The estimates provided for core assets have been included for illustrative purposes only. The composition of core assets has likely changed since the core asset AMP was completed and replacement costing has potentially increased at a higher rate. A true reflection of current replacement costing for core assets would require a detailed review and update of the core asset AMP. The table above is intended to act as a reminder that the Municipality owns a significant amount of additional infrastructure that, although not accounted for in this AMP, must be considered when assessing the full replacement cost of the Municipality’s total asset inventory. Attachment 1 to FSD-030-24 Page 195 Asset Management Plan 2024 | 29 Figure 1 – Estimated Total Asset Replacement Costing ($2024) – All Core and Non-core Assets Asset Age The majority of asset age data was extracted from the Municipality’s asset inventory and was determined based on the in-service date provided in CityWide. The average age for each asset category represents a weighted average, based on replacement cost, of the average age of the various asset types within each category. The average age of the various asset types, within each asset category, is provided in the individual asset chapters. The total average age for all non-core assets, presented in Table 1, represents a weighted average of the various asset categories, based on replacement cost. The total average age of all non-core assets is approximately 41.8 years. Average age varies significantly depending on the type of asset. The average age of facilities is significantly higher than the other asset categories because these assets are generally maintained and renovated not typically subject to a full replacement. The age of these assets is based on the initial construction date, which, in the case of the Municipal Administration Centre, was over one-hundred years ago. $1,290,253,000 $942,167,000 $2,232,420,000 $0 $500,000,000 $1,000,000,000 $1,500,000,000 $2,000,000,000 $2,500,000,000 $0 $200,000,000 $400,000,000 $600,000,000 $800,000,000 $1,000,000,000 $1,200,000,000 $1,400,000,000 Core Asset Replacement Cost Non-core Asset Replacement Cost Attachment 1 to FSD-030-24 Page 196 Asset Management Plan 2024 | 30 In certain circumstances, the age of specific asset types was unknown. In these cases, efforts were made to estimate the age as accurately as possible. In other cases, estimating the age with a reasonable degree of accuracy was not possible based on data gaps. In these limited circumstances, the average age was listed as “N/A” (not available). This was done for certain types of streetlights that were likely installed before electronic documentation became available. Estimated Useful Life Each asset has also been assigned an estimated useful life based on industry best practice or through discussions with service area experts within the Municipality. The Municipality’s Capitalization Policy assigns an estimated useful life to all capital assets as a means of amortizing the asset for financial reporting purposes. The estimates provided in this policy are based on industry best practice (at the time the policy was developed) and were used in most circumstances for the AMP. In other circumstances, the expertise of staff was used to determine the estimated useful life based on updated estimates from recent acquisitions. The estimated useful life of certain assets tends to lengthen over time with improvements in technology and manufacturing. For example, light poles for streetlights and sports fields are now equipped with a lifetime warranty. The estimated useful life for specific asset types has been included in the chapters for the individual asset categories. Asset Condition Condition Assessment Methodology – Non-Facility Assets The condition for most of the Municipality’s non-core assets (excluding Facilities) has not been assessed through a physical condition assessment. Most of these assets are visually inspected on a periodic basis to identify obvious signs of deterioration; however, most assets are not routinely subject to physical inspections that assess the structural condition of the asset. In the absence of physical condition assessments, the AMP uses the age of the asset as a proxy for condition. The metric used is the Useful Life Consumption Percentage (ULC%), which derives a condition based on the assets age relative to its estimated useful life. The ULC% is calculated by dividing the assets age by its estimated useful life to determine the percentage of its estimated useful life that has been consumed. Attachment 1 to FSD-030-24 Page 197 Asset Management Plan 2024 | 31 New assets would have a ULC% of 0% as these assets have not yet consumed any of their estimated useful lives. Assets that have reached their estimated useful life would have a ULC% of 100%, indicating that they have consumed all of their estimated useful life. It is possible for assets to have a ULC% greater than 100% if the asset is beyond its estimated useful life. It is important to note that a ULC% of greater than 100% is not necessarily an immediate concern. Some assets, through routine maintenance, can last beyond their estimated useful life and still perform their desired level of service. However, close attention should be paid to these assets as they are beyond their estimated useful life and will likely require replacement in the near future. The table below segments the ULC% into qualitive condition states. The ULC% condition states are segmented based on the probability of failure. An asset that has reached its estimated useful life (ULC% of 100%) would be considered in “Fair” condition. Once an asset starts to exceed its estimated useful life, the probability of failure increases, and the condition becomes “Poor” to “Very Poor”. The condition assessment scale was provided by the consulting firm Watson and Associates and is based on guidance in the International Infrastructure Management Manual. Table 4 – ULC% Condition States ULC% Condition State 0% ≤ ULC% ≤ 45% Very Good 45% < ULC% ≤ 90% Good 90% < ULC% ≤ 100% Fair 100% < ULC% ≤ 125% Poor 125% < ULC% Very Poor In certain limited cases, the condition of an asset is determined through a physical condition assessment. This is the case for many Emergency Services assets that have a direct impact on the health and safety of the user (e.g. bunker gear, helmets, Self-Contained Breathing Apparatus (SCBA’s), etc.). These assets have been provided a condition rating of “Assessed”, which reflects the fact that they are physically inspected on a frequent basis to ensure the assets remain in Very Good condition. This is also the case for certain types of critical IT infrastructure. Attachment 1 to FSD-030-24 Page 198 Asset Management Plan 2024 | 32 Condition Assessment Methodology – Facility Assets The condition of Corporate and RCC Facilities were assessed by an engineering consulting team through formal Building Condition Assessments (BCA’s). The BCA’s were completed in late 2023 and early 2024 and included visual inspections of the majority of facilities owned by the Municipality. The purpose of the visual assessments was to provide a general indication of the present physical condition of the building components. The inspections evaluated the structure and facility elements, the building envelope, and the mechanical/electrical systems. The BCA’s also included a predictive ten-year forecast for renewal costs. The BCA’s did not include any physical or destructive testing and observations were made only in areas that were visible or readily accessible. The BCA’s assessed the condition of each facility using a Facility Condition Index (FCI) methodology. The FCI reflects the cost of remedying maintenance deficiencies as a percentage of the current replacement value. The AMP uses the FCI derived from the BCA’s as the condition assessment for all facility assets. The table below segments the FCI% into qualitative condition states. The FCI is a widely recognized benchmark, used in facilities management, and the condition states identified below are based on industry best practice. Table 5 – FCI Condition States FCI Condition State Definition 0% ≤ FCI% < 5% Good Facilities look clean and functional with limited expectation of equipment/component failure. Repairs are generally more aesthetic in nature. 5% ≤ FCI% < 10% Fair Facilities are beginning to show signs of wear and equipment failures are more frequently expected. Specific systems/components require repair or replacement. 10% ≤ FCI% < 30% Poor Facilities appear worn, with increasing deterioration, and frequent component failures are expected. Replacement of major systems are required. Attachment 1 to FSD-030-24 Page 199 Asset Management Plan 2024 | 33 FCI Condition State Definition 30% < FCI% Critical Facilities appear worn, with obvious signs of deterioration, and frequent equipment failures are expected. Replacement of multiple systems are required, and the facility poses a health and safety risk. Note that the FCI calculations use replacement value, as opposed to replacement cost, as the denominator in the condition calculation. Total replacement value represents only the sum of the costs of each component part of the facility whereas replacement cost is a broader measure that includes all the other costs associated with replacing a facility (e.g. project management, contingencies, labour costs, etc.). Assessed Conditions Most non-core asset categories have an average condition rating of Good (Table 1). The average condition rating for each asset category is determined using the same weighted average approach used for determining average age. The condition ratings suggest that the majority of assets, with significant estimated replacement costs, are within their estimated useful life. The average condition for Transportation Infrastructure is rated as Very Good due to the lengthy estimated useful lives applied to the assets with the highest replacement costs. Although the average condition for all asset categories is rated as Good or Very Good, the condition rating for each individual underlying asset ranges from Very Poor to Very Good. The figure below provides the condition distribution for all underlying assets within the various asset categories. The figure below provides an unweighted view of asset conditions and provides the distribution based on the quantity of assets. The condition distribution for Recreation, Community, and Culture is significantly different than the average condition for this asset category because the distribution is unweighted, and the quantity of recreation equipment far outnumbers the quantity of facilities. Attachment 1 to FSD-030-24 Page 200 Asset Management Plan 2024 | 34 Figure 2 – Condition Distribution by Asset Category Assessed Condition – Facilities The condition assessments provided for all municipal facilities represent the current condition as of 2024. The individual chapters for Corporate Facilities and Recreation, Community, and Culture also provide a long-term condition rating that assesses the total condition for the next five and ten years. The total condition ratings for the next five to ten years range from Good to Critical. This suggests that, although the current condition is rated as Good, these facilities still require a significant amount of renewal needs within the next ten years. 33% 70% 29% 35% 27% 27% 98% 100% 24% 23% 32% 36% 32% 40% 2% 5% 1% 5% 6% 6% 2% 11% 4% 13% 8% 11% 16% 27% 1% 21% 15% 23% 15% 0%10%20%30%40%50%60%70%80%90%100% Corporate Facilities Corporate Fleet Emergency Services Information Technology Parking Parks Recreation, Community, and Culture Transportation Very Good Good Fair Poor Very Poor Attachment 1 to FSD-030-24 Page 201 Asset Management Plan 2024 | 35 Levels of Service The Municipality’s current level of service, for the purpose of the AMP, is defined as maintaining both the asset condition distribution and the overall size of the backlog at current levels. Assets typically require replacement when they reach the point where they can no longer perform their functional duty. It is difficult to predict when an asset will reach the point where it can no longer perform its functional duty as this is typically dependent on the frequency of use. For example, two identical fleet vehicles may have very different replacement schedules if one vehicle is used far more frequently than the other. The vehicle with the higher use frequency will likely deteriorate at a faster rate and will likely need to be replaced sooner than the other. As asset failure can occur at any point throughout the lifecycle, the AMP assumes that assets will require replacement at the end of their useful life. Some assets may need to be replaced before the end of their useful life, while other assets may last beyond their estimated useful life. The AMP assumes that, on average, assets will no longer be able to perform their functional duty at the end of their useful life. At this point, the asset will either be replaced or will be included in the backlog. This assumption also ensures that the average condition of each asset category is generally maintained at current levels. Levels of Service Metrics Specific levels of service metrics were developed for each asset category. Metrics were developed in an effort to reflect the desires, values, and expectations of the community. The structure of the levels of service tables are similar for all asset categories and include the following columns: • Service Attribute – identifies the high-level attribute being addressed and are intended to reflect important values of the organization. • Levels of Service Statement - intended to capture the expectations of the community. • Performance Measure – intended to quantify the expectation identified in the Levels of Service Statement. • Current Performance – identifies the current performance of the metric, using the most recent data available. Efforts were made to maintain consistency across the various asset categories in terms of the service level attributes being addressed. Attributes were selected based on certain key characteristics, such as sustainability, accessibility, cost effectiveness, and quality. Attachment 1 to FSD-030-24 Page 202 Asset Management Plan 2024 | 36 The service attributes of cost effectiveness and quality were applied to all asset categories, whereas sustainability and accessibility were applied when appropriate. The performance measures for cost effectiveness and quality were also consistently applied across all asset categories. Cost effectiveness is measured by identifying the current capital reinvestment rate for each asset category. The reinvestment rate was determined by identifying the most recent capital budget allocations, with respect to replacement and rehabilitation, and dividing by the total estimated replacement cost for the respective asset category. Quality is measured by the current average condition rating identified in the AMP. Levels of Service Targets The AMP identifies only the current level of service for each performance measure. Proposed levels of service and corresponding service level targets will be included in future iterations of the AMP, in accordance with O. Reg. 588/17. Although efforts will be made to maintain the current subset of performance measures, these measures may be refined in future iterations as more data becomes available. Lifecycle Management Strategies Lifecycle management strategies represent the set of planned actions required to maintain assets at their current level of service. The set of actions can include activities intended to maintain or extend the service life of an asset. Asset management plans must also include a ten-year capital plan that forecasts the costs associated with the lifecycle management strategies over the ten-year period. The table below identifies the main categories of lifecycle activities or planned actions that would be associated with capital assets. Table 6 – Lifecycle Activities for Capital Assets Lifecycle Activity Description Inspection Includes routine inspections of assets to ensure condition remains at desired levels. This could include physical inspections or visual inspections. Attachment 1 to FSD-030-24 Page 203 Asset Management Plan 2024 | 37 Lifecycle Activity Description General Repair and Maintenance (minor rehabilitation) Includes the routine maintenance and repair activities performed to ensure assets reach their estimated useful life. These activities are generally minor in nature and typically represent a cost of less than $5,000. Major Repair and Maintenance (major rehabilitation) Includes major repair and maintenance work that exceeds $5,000 per activity. This would typically include the repair or replacement of a major asset component. Replacement Includes the full replacement of the asset at the end of its lifecycle. Expansion or Enhancement Includes the expansion or enhancement of an asset; generally completed to enhance the level of service provided by the asset. Disposal Activities associated with disposing of an asset once it has reached the end of its useful life or when it is no longer required by the Municipality. Inspection activities and general maintenance and repair are either completed by staff or are budgeted through the Municipality’s operating budget. As these activities typically represent operating costs, the cost of these activities has not been included in the AMP. According to O. Reg. 588/17, only capital costs and “significant” operating costs should be captured in the AMP. The Municipality does not consider inspection and general maintenance and repair activities as significant operating costs for the purposes of the AMP. The Lifecycle costs included in the AMP pertain only to major capital repair, maintenance and replacement activities. Major repair and maintenance activities are typically performed on facility assets as these assets are not typically subject to a full replacement. Facility assets are actively maintained through both general and major repair and maintenance. Replacement activities form the basis of the lifecycle costing for all other asset categories. Most maintenance activities performed on municipal assets are funded through the operating budget, leaving mainly the replacement of the asset to be funded through the capital budget. Expansion or enhancement activities have not been included in the AMP as these activities often result in an increased service level. These activities typically represent a capital cost to the Municipality; however, they are typically partially funded by development charges. According to O. Reg. 588/17, the AMP must include the cost of Attachment 1 to FSD-030-24 Page 204 Asset Management Plan 2024 | 38 providing lifecycle activities that would need to be undertaken to maintain the current levels of service. Disposal activities have also not been included in lifecycle costing as these activities rarely result in a capital cost. Lifecycle Strategy Costing and Backlog As mentioned, the Municipality’s current practice is to plan for the replacement of an asset once the asset can no longer perform its functional duty. Since it is difficult to predict when an asset may fail, the AMP assumes the asset will fail once it reaches Poor condition (i.e. end of its estimated useful life). The lifecycle management costs presented in the AMP include the major repair and maintenance activities, funded through the capital program, and the end-of-life replacement of the assets. The figure below identifies the estimated annual cost, over the next ten years, to perform these lifecycle activities across all asset categories. Figure 3 – Annual Lifecycle Costing ($,000’s) – All Non-core Asset Categories $33,824 $6,692 $18,818 $13,041 $13,976 $18,037 $8,602 $13,970 $16,060 $12,038 $28,631 $149,866 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Attachment 1 to FSD-030-24 Page 205 Asset Management Plan 2024 | 39 The estimated cost of lifecycle activities, over the 2024-2033 period, is approximately $150 million. The total estimated cost, including all the costs included in the backlog, is approximately $183.7 million. The backlog represents the total estimated replacement cost of assets that, according to their age and estimated useful life, have surpassed their anticipated year of replacement. The backlog represents the total estimated cost of the assets that are beyond their estimated useful life and that will likely require replacement sometime within the ten-year forecast period. It is important to note that items appearing in the backlog may not necessarily require immediate attention. These assets have likely been maintained through general maintenance and repair and may still be performing their functional duty at an acceptable level. Since these assets have surpassed their planned year of replacement, it is difficult to predict in which year these assets will now require replacement. These assets will sit in the backlog until such time as they are replaced. The backlog contains only the assets that have a reasonable likelihood of requiring replacement within the ten- year forecast period. Some backlog items are more theoretical in nature, in that they appear in the backlog only because they have exceeded their estimated useful life. The physical condition of these assets is such that there is a minimal likelihood that replacement would be required within the ten-year forecast period. These items have been removed from the backlog, leaving the backlog with only the items with a reasonable likelihood of requiring replacement within the forecast period. Average Annual Lifecycle Costing The costs in Figure 3 represent the estimated annual gross cost of replacing assets at the end of their estimated useful life, along with the estimated gross cost of major repair and maintenance needs over the next ten years. The amount of annual maintenance and replacement activities varies, leading to significant variations in annual costing. In an effort to smooth out the large variances, an average annual cost of lifecycle activities has been determined. Figure 4 compares the total annual lifecycle costs with the average annual lifecycle costs of maintaining all non- core assets at their current level of service. The average annual costs have been structured so that the costs increase at the assumed annual rate of inflation (approximately four percent per year). This ensures that, in real, inflation-adjusted terms, the costs are being spread equitably over the forecast period. Attachment 1 to FSD-030-24 Page 206 Asset Management Plan 2024 | 40 In order to ensure that current levels of service are being maintained, the average annual costs assume the overall dollar value of the backlog will remain constant throughout the forecast period. This scenario assumes that some items in the backlog would be addressed on an annual basis, but the replacement of backlog items would come at the expense of other scheduled replacement activities. Some scheduled activities would then fall into the backlog, thus maintaining the overall size of the backlog at its current level. This scenario would also ensure a consistent mix of assets, with condition ratings ranging between Very Good to Very Poor, would be maintained. Figure 4 also removes the estimated costs that have been previously budgeted. Some lifecycle activities have already been budgeted but have not yet been performed. The estimated total annual costs, within each scenario, assumes that the previously budgeted activities no longer represent a cost to the Municipality. Since the majority of lifecycle costs for 2024 have been previously budgeted, the total annual costs have been averaged out over the 2025-2033 period. Figure 4 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) $746 $17,332 $8,217 $13,950 $17,977 $8,602 $13,970 $16,060 $12,038 $28,625 $13,004 $13,521 $14,060 $14,620 $15,202 $15,807 $16,437 $17,092 $17,774 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 207 Asset Management Plan 2024 | 41 Alternative Lifecycle Costing The average annual costs identified in Figure 4 represent the average annual costs of maintaining current service levels, with the current dollar value of the backlog and the current asset condition distribution remaining constant throughout the forecast period. The figures below provide alternative costing scenarios that take a more aggressive approach to addressing the backlog. Figure 5 identifies the estimated average annual lifecycle cost under the assumption that the current level of service will be maintained and that 50 per cent of the current backlog would be eliminated over the ten-year forecast period. This scenario takes a gradual approach to reducing the backlog over time. This scenario would lead to a gradual transition of all assets to Very Good to Good condition, with some assets likely remaining in the Poor to Very Poor condition at the end of the ten-year forecast period. Figure 5 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Reduce Backlog $746 $19,112 $10,068 $15,851 $19,953 $10,517 $15,961 $18,132 $14,193 $30,865 $14,692 $15,278 $15,887 $16,520 $17,179 $17,864 $18,576 $19,317 $20,087 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 208 Asset Management Plan 2024 | 42 Figure 6 identifies the estimated average annual lifecycle cost under the assumption that the current level of service will be maintained and that the entire backlog will be eliminated over the ten-year forecast period. This scenario would transition the majority of assets into the Very Good to Good condition rating by the end of the forecast period. Figure 6 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Eliminate Backlog The table below compares the total average annual costs of maintaining the current level of service (i.e.: maintaining the dollar value of the current backlog) with the alternative scenarios of reducing and eliminating the backlog over the ten-year forecast period. The total costs, over the 2025-2033 period, range from approximately $137.5 million, under the current service level scenario, to approximately $175.3 million under the scenario of eliminating the entire backlog. $746 $20,964 $13,296 $17,828 $22,012 $12,516 $18,040 $20,293 $16,441 $33,210 $16,573 $17,235 $17,923 $18,639 $19,384 $20,158 $20,963 $21,800 $22,670 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 209 Asset Management Plan 2024 | 43 Table 7 – Average Annual Lifecycle Cost Comparison ($,000’s) 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Current Service Level $13,004 $13,521 $14,060 $14,620 $15,202 $15,807 $16,437 $17,092 $17,774 $137,516 Reduce Backlog $14,692 $15,278 $15,887 $16,520 $17,179 $17,864 $18,576 $19,317 $20,087 $155,399 Eliminate Backlog $16,573 $17,235 $17,923 $18,639 $19,384 $20,158 $20,963 $21,800 $22,670 $175,347 Inflation Assumptions The costs identified in the lifecycle management strategies are heavily dependent on the inflation assumption used throughout the AMP. The AMP assumes a four per cent per year inflation assumption for all asset types. The four per cent annual inflation factor is based on the historic average of the non-residential Building Construction Price Index (BCPI). The BCPI is often used as a proxy to estimate inflation on capital infrastructure. The average annual BCPI growth rate for the Toronto Census Metropolitan Area was just over four per cent for the 2010 to 2023 period. Significant inflationary increases began to occur in 2021, with the Toronto CMA BCPI increasing 9.6 per cent. These above average increases continued in 2022 and 2023, with annual increases of 16.2 and 8.2 per cent respectively. The significant increases from 2021 to 2023 were related to a number of macroeconomic shocks and geopolitical events (e.g. supply chain issues, labour shortages, international conflicts, etc.). It is difficult to predict whether the recently elevated BCPI inflation rates will continue into the future or whether these inflation rates will return to the long run average. Consumer Price Index (CPI) inflation averaged just over two per cent per year over the same 2010 to 2023 period. This is in line with the Bank of Canada target for a two per cent annual inflation rate. CPI inflation also increased Attachment 1 to FSD-030-24 Page 210 Asset Management Plan 2024 | 44 significantly between 2021 and 2023 but is beginning to normalize in early 2024. The Bank of Canada is committed to bringing CPI inflation back down to its two per cent per year target. Assuming annual CPI inflation returns to the two per cent per year target, and the historical relationship between CPI and BCPI holds, a four per cent annual inflation rate, over the next ten years, is a reasonable assumption. Inflation factors will be monitored closely over the coming years and any adjustments will be incorporated through the annual capital budget process. Lifecycle Costing Including Core Assets The total annual lifecycle costs identified in Figure 3 above reflect only the costs for the non-core assets that form the basis of this AMP. Identifying the total annual lifecycle costing for all assets owned by the Municipality, would require the inclusion of the core assets included in the 2022 AMP. The figure below provides the estimated annual lifecycle costs, for all roads, stormwater, and bridges/culverts assets, that were presented in the 2022 AMP, along with the estimated costs in current (2024) dollars. The costs in the figure represent only the capital costs identified in the 2022 AMP. Figure 7 – 2022 AMP - Total Capital Lifecycle Costs ($,000’s) – Core Assets $9,512 $12,655 $9,695 $15,605 $27,017 $17,714 $14,034 $11,127 $14,805 $11,340 $18,247 $31,605 $20,723 $16,417 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 2024 2025 2026 2027 2028 2029 2030 2022 Total Lifecycle Costs - Core Assets 2024 Updated Total Lifecycle Costs - Core Assets Attachment 1 to FSD-030-24 Page 211 Asset Management Plan 2024 | 45 The forecast period for the 2022 AMP was 2021-2030. The figure above includes only the forecasted costs that are within the forecasted period of the current AMP (2024–2033). The figure below consolidates the total annual lifecycle costs for both the core and non-core assets, over the 2024- 2030 period. Figure 8 – Total Annual Lifecycle Costs – All Assets It should be noted again that the estimates provided for core assets have been included for illustrative purposes only. The composition of core assets has likely changed since the core asset AMP was completed and lifecycle costing has potentially increased at a higher rate. A true reflection of future lifecycle costing for core assets would require a detailed review and update of the core asset AMP. The figure above is intended to act as a reminder that the Municipality owns a significant amount of additional infrastructure that, although not accounted for in this AMP, must be considered when assessing the total lifecycle costs associated with all municipal infrastructure. $6,692 $18,818 $13,041 $13,976 $18,037 $8,602 $13,970 $11,127 $14,805 $11,341 $18,255 $31,607 $20,723 $16,417 $17,819 $33,623 $24,383 $32,231 $49,643 $29,325 $30,387 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2024 2025 2026 2027 2028 2029 2030 Non-Core Assets Core Assets Total Attachment 1 to FSD-030-24 Page 212 Asset Management Plan 2024 | 46 Corporate Facilities 04 Attachment 1 to FSD-030-24 Page 213 Asset Management Plan 2024 | 47 Corporate Facilities Overview Corporate Facilities includes all the facilities, owned by the Municipality, that are used for public administration purposes and not for community programming. Corporate Facilities includes the Municipal Administration Centre and the Animal Services facility, along with various fire stations and Public Works depots. The Municipality’s Corporate Facilities are operated and managed by the Facilities division of the Public Services Department. The majority of asset management information for Corporate Facilities has been derived from the Building Condition Assessments (BCA) completed in late 2023 and early 2024. The Municipality contracted an external engineering consultant to conduct detailed condition assessments of all major facilities within the Municipality. The BCA’s provide updated replacement values, condition assessments, and lifecycle management costs. The Municipality’s Corporate Facilities have been divided into different sub-asset types, based on similar characteristics and functions. The different sub-types are provided and defined in the tables below. Table A1 – Corporate Facilities Assets Asset Type Asset Sub-Type Purpose Corporate Facilities Municipal Administration Centre The main administration building for the Municipality and the location for most full-time permanent staff. The building also includes the Bowmanville branch of the Clarington Public Library. Fire Stations Includes five fire stations, spread across the Municipality, that are operated by Clarington Emergency and Fire Services. Public Works Depots Includes three Public Works depots used for both administration purposes and for the storage of municipal fleet and equipment. Animal Services Building The main administrative building for the Animal Services Division. Attachment 1 to FSD-030-24 Page 214 Asset Management Plan 2024 | 48 State of Local Infrastructure Asset Inventory The summarized asset inventory for Corporate Facilities is presented in the table below. Replacement costing is based on a full reconstruction of the corresponding facilities. An estimate of $750 per sq. ft has been applied to the size of each facility to generate the replacement cost. These figures differ from what is presented in the BCA’s as the BCA’s provide a replacement value as opposed to a replacement cost. Total replacement value represents only a sum of the costs of each component part of the facility, whereas replacement cost is a broader measure that includes all the other costs associated with replacing a facility (e.g. project management, contingencies, labour costs, etc.). Table A2 - Summarized Asset Inventory – Corporate Facilities Asset Type Asset Sub-Type Quantity Average Age (Years) Replacement Cost ($2024) Corporate Facilities Municipal Administrative Centre 1 121 $66,004,000 Fire Stations 5 26.8 33,344,000 Public Works Depots 3 50 18,855,000 Animal Services Building 1 64 4,376,000 Total 10 78.8 $122,579,000 As shown in Table A2, the total replacement cost for the Municipalities Corporate Facilities is approximately $122.6 million. The Municipal Administration Centre (MAC) accounts for over half of the total replacement cost. The MAC is the main administrative building for the Municipality and is where the majority of administrative staff are located. Attachment 1 to FSD-030-24 Page 215 Asset Management Plan 2024 | 49 Asset Age Table A3 includes a summary of the average age of the various Corporate Facilities within each sub-category. The age of each asset in the inventory is assessed and given equal weighting when deriving the average age for each asset sub-type. The average age for each asset sub-type represents the simple average of the various facilities within that category. The total average age for all Corporate Facilities represents a weighted average of all asset sub-types, based on total replacement cost. Table A3 – Average Age and Condition – Corporate Facilities Asset Type Asset Sub-Type Quantity Average Age (Years) Estimated Useful Life1 Average Condition (FCI%) Average Condition State Corporate Facilities Municipal Administrative Centre 1 121 50 1.00% Good Fire Stations 5 26.8 50 0.49% Good Public Works Depots 3 50 50 1.00% Good Animal Services Building 1 64 50 1.60% Good Total 10 78.8 50 0.88% Good 1 Estimated useful life based on the structure of the facility. The age for each individual facility represents the age of the original portion of the building. For example, the MAC has an original component built in 1903, with an additional component constructed in 1988 and another addition built in 2003. The AMP uses the date of the original construction as the basis for the age calculation. Each asset has also been assigned an estimated useful life based on industry standards and the Municipality’s current Capitalization Policy. Figure A1 below compares the average age with the average estimated useful life for each asset sub-type. Attachment 1 to FSD-030-24 Page 216 Asset Management Plan 2024 | 50 Figure A1 – Average Age (Years) and Estimated Useful Life (Years) – Corporate Facilities The average age for many of the Corporate Facilities exceeds the estimated useful life. However, the average age is based on the original construction date of the facility and all facilities undergo regular rehabilitation and maintenance activities to ensure the buildings remain in good working order. Figure A1 also uses the estimated useful life of the building structure to compare against the average age. The estimated useful life of the entire facility is difficult to assess given the various underlying components. The Municipality’s Capitalization Policy assigns different useful life assumptions to different facility components. The various estimated useful life assumptions are provided in Table A4 below. 121 26.8 50 64 50 50 50 50 0 20 40 60 80 100 120 140 Municipal Administration Centre Fire Stations Public Works Depots Animal Services Building Estimated Useful Life Average Age Attachment 1 to FSD-030-24 Page 217 Asset Management Plan 2024 | 51 Table A4 – Estimated Useful Life – Various Building Components Asset Class Sub-class Type Estimated Useful Life Buildings Structure Overall 50 years Roof As per material and condition Variable Structure Interior 25 years Structure Mechanical (includes HVAC, heat pumps, water heaters, etc.) Variable Specialized Indoor pool; Ice pad 30 years Specialized Indoor field 15 years Site Improvement Parking lot, Landscaping 20 years Whole Sand domes, Salt shed, Quonset hut, Sheds 25 years Asset Condition Table A3 also provides the current (2024) average condition rating for each of the asset sub-types within Corporate Facilities. Corporate Facilities use the Facilities Condition Index (FCI) methodology to assess condition. The FCI is an industry standard used to assess the condition of building assets. As described in the Municipality’s BCA’s, the Facility Condition Index (FCI) is a comparative indicator of the relative condition of facilities. The FCI is expressed as a ratio of the cost of remedying maintenance deficiencies to the current replacement value. Calculating the FCI, for a particular year, requires dividing the cost of renewal needs in that particular year by the total estimated replacement value. Note that the BCA’s use total replacement value, as opposed to total replacement cost, as the denominator in their condition calculations. The average condition for all Corporate Facilities is rated as Good. The average condition rating for Corporate Facilities was derived using a weighted average based on the replacement cost of each asset sub-type. The condition rating for each facility reflects the current FCI rating for 2024 as provided in the BCA’s. Attachment 1 to FSD-030-24 Page 218 Asset Management Plan 2024 | 52 The figure below provides the condition distribution for each of the asset sub-types. All the facilities, within each sub-type, have an FCI rating of Good for 2024. Figure A2 – Condition Distribution – Corporate Facilities Long-term Condition Rating In addition to providing a condition rating for the current year, the BCA’s also provide total condition ratings for the next five and ten years. These condition ratings are derived by summing the total dollar value of renewal needs over the next five and ten years and dividing by the current replacement value. The table below provides the total average condition rating for the next five and ten years for each asset sub-type within Corporate Facilities. 100% 100% 100% 100% 0%10%20%30%40%50%60%70%80%90%100% Municipal Administration Centre Fire Stations Public Works Depots Animal Services Building Good Fair Poor Critical Attachment 1 to FSD-030-24 Page 219 Asset Management Plan 2024 | 53 Table A5 – Total Five- and Ten-Year Average Condition Rating Total 5-year FCI% Total 5-year Condition State Total 10-year FCI% Total 10-year Condition State Municipal Administration Building 6.24% Fair 27.57% Poor Fire Stations 8.79% Fair 20.96% Poor Public Works Depots 23.78% Poor 30.88% Critical Animal Services Building 7.20% Fair 26.88% Poor The table above suggests that, although the current average condition of Corporate Facilities is rated as Good, these facilities will still require a significant amount of renewal needs, over the next five to ten years, relative to their current replacement value. Levels of Service The levels of service for Corporate Facilities were developed in an effort to reflect the desires, values, and expectations of the community. The Level of Service statements are intended to capture the expectations of the community, while the performance measures are intended to quantify those expectations. The Levels of Service attributes are intended to reflect some of the key characteristics important to the organization. The Municipality’s current levels of service performance are provided in the table below. Proposed levels of service and their respective targets will be identified in future iterations of the AMP. Attachment 1 to FSD-030-24 Page 220 Asset Management Plan 2024 | 54 Table A6 – Current Levels of Service – Corporate Facilities Service Attribute Level of Service Statement Performance Measure Current Performance Cost Effective Managing Corporate Facility assets in a fiscally sustainable manner Corporate Facilities Reinvestment Rate 1.8% Quality Ensuring Corporate Facilities are in a suitable condition for public administration % of Corporate Facilities in Fair or better condition (FCI) 100% Sustainability Providing public administrative services in an environmentally sustainable manner Annual electric energy consumption for all Corporate Facilities, per sq. ft. 1,350 kWh Annual natural gas consumption for all Corporate Facilities, per sq. ft 17 m3 Annual water consumption for all Corporate Facilities, per sq. ft. 0.44 m3 Lifecycle Management Strategies and Costing The Municipality undertakes four main types of lifecycle activities to ensure Corporate Facilities assets maintain their current level of service. Inspection activities are completed periodically to assess the overall condition of each facility, along with the condition of each major component part (e.g. roof, plumbing, electrical, etc.). Routine inspections are completed by staff, including quarterly mechanical inspections and monthly visual building inspections. Detailed BCAs are completed approximately every 5-years and help identify the potential maintenance requirements over a forecast horizon. The cost of BCA inspections represents a capital cost to the Municipality and have been captured in the annual lifecycle costing. Attachment 1 to FSD-030-24 Page 221 Asset Management Plan 2024 | 55 Minor repair and maintenance activities are performed throughout the useful life of an asset. These activities include the general maintenance required to ensure the assets remain in good working order. Minor expenses are funded through repair and maintenance accounts in the Municipalities operating budget and have not been included in annual lifecycle costing. Major expenses are funded through the Municipalities capital budget. Major repair and maintenance activities are also performed throughout the assets lifecycle. Major repairs and maintenance occur when the cost to perform the activity exceeds $5,000 and the cost becomes a capital expense. The BCA’s provide a ten-year forecast for repair and maintenance activities required to maintain the facilities in good working order. The forecasts from the BCA’s have been used as the basis for the lifecycle costing estimates in the AMP. The AMP assumes that minor costs ($5,000 or less) will flow through the municipal operating budget and have not been included in lifecycle costing. Lifecycle costing in the AMP includes only the major expenses, identified in the BCA’s, that exceed the $5,000 threshold. Replacement activities involve the full replacement of an asset at the end of its useful life. The AMP does not forecast the full replacement of any Corporate Facilities over the ten-year forecast period. Attachment 1 to FSD-030-24 Page 222 Asset Management Plan 2024 | 56 The figure below identifies the annual lifecycle costing required to maintain the Municipality’s current level of service as identified in the BCA’s. Figure A3 – Annual Lifecycle Costing – Corporate Facilities ($,000’s) It will cost approximately $22.2 million over the next ten years to maintain the current level of service. The total cost, including the cost of the backlog, is approximately $22.7 million. The backlog items include maintenance activities that were identified in the BCA’s to be performed in 2023. $509 $451 $2,670 $565 $1,068 $4,223 $1,319 $3,923 $936 $305 $6,771 $22,229 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Attachment 1 to FSD-030-24 Page 223 Asset Management Plan 2024 | 57 Average Annual Lifecycle Cost The costs in Figure A3 represent the annual gross cost of maintaining Corporate Facilities assets over the next ten years. The amount of lifecycle activities varies on an annual basis, leading to significant cost variances from year- to-year. Figure A4 below removes the significant annual variances by determining the average annual cost of maintaining Corporate Facilities assets at their current level of service (i.e.: maintaining the overall dollar value of the backlog throughout the forecast period). The figure also nets off any costs where the work has already been budgeted but not yet completed. Figure A4 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) $451 $2,670 $565 $1,068 $4,221 $1,319 $3,923 $936 $305 $6,765 $2,104 $2,187 $2,273 $2,363 $2,456 $2,554 $2,655 $2,760 $2,869 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 224 Asset Management Plan 2024 | 58 Alternative Lifecycle Costing The figure above identifies the average annual costs at current service levels, where the dollar value of the backlog and current asset condition distribution remain constant throughout the forecast period. The figures below provide alternative costing scenarios based on a more aggressive approach to addressing the backlog. Figure A5 provides average annual costing under a scenario in which the overall size of the backlog is reduced by 50 per cent over the ten-year forecast period. This would result in a service level enhancement in which the condition distribution would include more assets in the Good to Very Good range. Figure A5 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Reduce Backlog $451 $2,699 $595 $1,099 $4,254 $1,353 $3,958 $973 $344 $6,805 $2,133 $2,217 $2,305 $2,396 $2,491 $2,589 $2,692 $2,798 $2,909 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 225 Asset Management Plan 2024 | 59 Figure A6 provides average annual costing under a scenario where the entire backlog is eliminated over the ten- year forecast period. This would result in a service level enhancement in which the condition distribution would include nearly all assets in the Good to Very Good range. Figure A6 – Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Eliminate Backlog The table below compares the average annual cost of maintaining current service levels (i.e.: maintaining the current dollar value of the backlog) with the alternative scenarios of reducing and eliminating the backlog over the forecast period. $451 $2,729 $626 $1,131 $4,289 $1,387 $3,994 $1,010 $382 $6,852 $2,163 $2,249 $2,338 $2,430 $2,526 $2,626 $2,730 $2,838 $2,951 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 226 Asset Management Plan 2024 | 60 Table A7 – Average Annual Lifecycle Cost Comparison ($,000’s) 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Current Service Level $2,104 $2,187 $2,273 $2,363 $2,456 $2,554 $2,655 $2,760 $2,869 $22,220 Reduce Backlog $2,133 $2,217 $2,305 $2,396 $2,491 $2,589 $2,692 $2,798 $2,909 $22,532 Eliminate Backlog $2,163 $2,249 $2,338 $2,430 $2,526 $2,626 $2,730 $2,838 $2,951 $22,852 Attachment 1 to FSD-030-24 Page 227 Asset Management Plan 2024 | 61 Corporate Fleet 05 Attachment 1 to FSD-030-24 Page 228 Asset Management Plan 2024 | 62 Corporate Fleet Overview The Municipality of Clarington owns and operates a variety of fleet assets, including vehicles and equipment. Fleet assets are all managed by the Works Division, within the Public Services Department, but are operated by various departments and divisions. The Municipality requires a diverse set of vehicles and equipment to ensure the municipality can effectively deliver a variety of services to residents. The Municipality’s vehicles and equipment have been divided into different asset sub-types, based on similar characteristics and functions. The different sub-types are provided and defined in the tables below. Table B1 – Fleet Vehicle Types Asset Type Asset Sub-type Purpose Vehicles Aerials Type of fire truck, operated by the Emergency Services Division, that is equipped with an extendable ladder or boom. Pumpers Type of fire truck, operated by the Emergency Services Division, that carries water and is equipped with a pump to deliver water directly to a fire. Tankers Type of fire truck, operated by the Emergency Services Division, that is primarily used to transport water to emergencies for use by other vehicles or equipment. Cars & Vans Includes the vehicles used for various municipal purposes, such as Municipal Law Enforcement and Building Inspections. Heavy Duty Vehicles Includes the Municipality's largest vehicles, used by the Works Division, such as snowplows and garbage trucks Medium Duty Vehicles Includes vehicles with at least one ton of payload capacity. This includes several trucks used by the Operations Division. Light Duty Vehicles Includes vehicles with less than one ton of payload capacity. Includes many pick- up trucks used for operations activities. Attachment 1 to FSD-030-24 Page 229 Asset Management Plan 2024 | 63 Table B2 – Fleet Equipment Types Asset Type Asset Sub-type Purpose Equipment Ice Resurfacers Used by the Community Services Division to smooth the ice service in the various arenas. Loaders & Graders Includes chippers, backhoes, and graders used by the Works Division for forestry activities. Tractors & Mowers Includes sidewalk tractors for snow clearing and mowers for grass cutting operations. Trailers Includes trailers used for transporting equipment, such as pressure washers and steamers. Unlicensed Equipment Includes various items of miscellaneous equipment, such as gators, excavators, and groomers. State of Local Infrastructure Asset Inventory The asset inventory summary for corporate fleet is provided in the table below. The majority of replacement costing has been estimated using a combination of recent tenders for similar vehicles and estimates provided by subject matter experts from the Municipality’s Public Works Division. In certain circumstances, replacement costing has been estimated by applying an inflation factor to historical costing. Attachment 1 to FSD-030-24 Page 230 Asset Management Plan 2024 | 64 Table B3 – Summarized Asset Inventory – Corporate Fleet Asset Type Asset Sub-Type Quantity Average Age (Years) Replacement Cost ($2024) Vehicles Aerials 2 13.5 $4,800,000 Cars & Vans 30 5.8 1,810,000 Heavy Duty Vehicles 41 8.1 12,780,000 Medium Duty Vehicles 13 11.1 1,628,000 Light Duty Vehicles 36 7.1 3,475,000 Pumpers 8 9.8 7,707,000 Tankers 4 11.8 2,084,000 Equipment Ice Resurfacers 6 9.8 890,000 Loaders & Graders 12 7.8 4,913,000 Tractors & Mowers 31 5.1 2,919,000 Trailers 18 12.7 725,000 Unlicensed Equipment 8 8.6 585,000 Total 209 9 $44,316,000 As shown in Table B3, the total replacement cost for the Municipalities corporate fleet is approximately $44.3 million. The total replacement cost for vehicles is approximately $34.3 million, while the estimated replacement cost for equipment is roughly $10 million. The replacement costing is based on an inventory of 134 vehicles and 75 units of equipment. Emergency Services vehicles, namely Aerials, Pumpers, and Tankers, and Heavy-Duty Vehicles account for over half of the total estimated replacement cost for corporate fleet. These vehicles provide a critical health and safety function for the Municipality, including the delivery of emergency services and winter maintenance. The asset inventory in Table B3 includes only the vehicles and equipment that are being actively maintained by the Municipality and are forecasted for replacement at the end of their useful life. The Municipality retains a small subset of vehicles that are beyond their estimated useful life and are not scheduled for replacement. These vehicles are typically retained by the Municipality for training purposes or because they still provide some alternative benefit to the Municipality. Attachment 1 to FSD-030-24 Page 231 Asset Management Plan 2024 | 65 Once these vehicles reach a state where they can no longer perform even their alternative function, they will be disposed and will not be replaced. Therefore, these assets have been excluded from the asset inventory for AMP purposes. Asset Age Table B4 includes a summary of the average age of the fleet assets within each sub-type. The age of each vehicle in the asset inventory is assessed and given equal weighting when deriving the average age for each fleet type. The average age for each sub-type represents the simple average of the various vehicles/equipment in that category. The total average age for all fleet types represents a weighted average of the different sub-types, based on total replacement cost. Table B4 – Average Age and Condition – Corporate Fleet Assets Asset Type Asset Sub-Type Quantity Average Age (Years) Estimated Useful Life (Years) Average Condition (ULC%) Average Condition State Vehicles Aerials 2 13.5 18 75% Good Cars & Vans 30 5.8 7 83% Good Heavy Duty Vehicles 41 8.1 10 81% Good Medium Duty Vehicles 13 11.1 10 111% Poor Light Duty Vehicles 36 7.1 7 102% Poor Pumpers 8 9.8 10 98% Fair Tankers 4 11.8 15 78% Good Equipment Ice Resurfacers 6 9.8 15 66% Good Loaders & Graders 12 7.8 10 78% Good Tractors & Mowers 31 5.1 10 49% Good Trailers 18 12.7 11 127% Very Poor Unlicensed Equipment 8 8.6 10 86% Good Total1 209 9 84% Good Attachment 1 to FSD-030-24 Page 232 Asset Management Plan 2024 | 66 Each vehicle has also been assigned an estimated useful life based on industry standards and the Municipality’s current Capitalization Policy. Figure B1 compares the average age with the average estimated useful life for each fleet type. The average age, for the majority of the Municipality’s fleet assets, is within the estimate useful life. Figure B1 – Average Age (Years) and Estimated Useful Life (Years) – Corporate Fleet 13.5 5.8 8.1 11.1 7.1 9.8 11.8 9.8 7.8 5.0 12.7 8.6 18.0 7.0 10.0 10.0 7.0 10.0 15.0 15.0 10.0 10.0 11.0 10.0 0 2 4 6 8 10 12 14 16 18 20 Aerials Cars & Vans Heavy Duty Vehicles Medium Duty Vehicles Light Duty Vehicles Pumpers Tankers Ice Resurfacers Loaders & Graders Tractors & Mowers Trailers Unlicensed Equipment Estimate Useful Life Average Age Attachment 1 to FSD-030-24 Page 233 Asset Management Plan 2024 | 67 Asset Condition Table B4 also provides the average condition rating for each of the fleet types within the Municipality. The condition percentages are derived using the ULC% methodology. The average condition rating for the entire stock of corporate fleet has been assessed as Good. This rating was derived using a weighted average of all asset sub- types, based on total replacement cost. The average condition rating for each fleet type varies from Good to Very Poor. The condition rating of the individual assets within each sub-type also varies from Very Good to Very Poor. The figures below illustrate the condition distribution within each fleet asset sub-type. Figure B2 – Condition Distribution – Vehicles 47% 29% 15% 28% 25% 50% 100% 20% 29% 8% 22% 38% 2% 15% 8% 7% 12% 15% 6% 13% 25% 27% 27% 46% 36% 25% 25% 0%10%20%30%40%50%60%70%80%90%100% Aerials Cars & Vans Heavy Duty Medium Duty Light Duty Pumpers Tankers Very Good Good Fair Poor Very Poor Attachment 1 to FSD-030-24 Page 234 Asset Management Plan 2024 | 68 Figure B3 – Condition Distribution – Equipment As previously stated, vehicles and equipment that are no longer being actively maintained and are not scheduled to be replaced have been excluded from the asset inventory. These assets are well passed their estimated useful life and would typically be assessed as Very Poor. Excluding these assets provides a more accurate reflection of the condition state of the Municipality’s vehicles and equipment. It should also be noted that Emergency Services Vehicles, such as Aerials, Pumpers, and Tankers, receive annual inspections to ensure the vehicles are able to perform their required service. Although some of these vehicles may be approaching the end of their useful life, the annual inspections ensure that the vehicles remain in good working order. 33% 25% 58% 11% 38% 33% 42% 16% 22% 25% 17% 3% 11% 17% 13% 17% 25% 33% 10% 39% 13% 0%10%20%30%40%50%60%70%80%90%100% Ice Resurfacers Loaders & Graders Tractors & Mowers Trailers Unlicensed Equipment Very Good Good Fair Poor Very Poor Attachment 1 to FSD-030-24 Page 235 Asset Management Plan 2024 | 69 Levels of Service The levels of service for Corporate Fleet were developed in an effort to reflect the desires, values, and expectations of the community. The Level of Service statement is intended to capture the expectations of the community, while the performance measures are intended to quantify those expectations. The Levels of Service attributes are intended to reflect some of the key characteristics important to the organization. The Municipality’s current level of service performance is provided in the table below. Proposed levels of services and their respective targets will be identified in future iterations of the AMP. Table B5 – Current Levels of Service – Corporate Fleet Service Attribute Level of Service Statement Performance Measure Current Performance Cost Effective Providing fleet services to the community in a fiscally sustainable manner Corporate Fleet Reinvestment Rate 8.70% Safety Providing vehicles and equipment that are safe for use in the community % of legislated MTO safety inspections completed 100.00% % of legislated MTO safety inspections met 100.00% Quality Providing corporate fleet assets in an acceptable condition % of vehicles in Fair or better condition 59.70% % of equipment in Fair or better condition 66.70% Sustainability Providing environmentally sustainable fleet services for the community % of vehicles (excluding fire trucks) that are fully electric (EV) 6.67% Annual fuel expenditure per fleet asset $3,048 Attachment 1 to FSD-030-24 Page 236 Asset Management Plan 2024 | 70 Lifecycle Management Strategies and Costing The Municipality undertakes three main types of lifecycle activities to ensure fleet assets maintain their current level of service. Inspection activities are completed annually, as a requirement of the Ontario Ministry of Transportation, on all municipal fleet vehicles included under the Commercial Vehicle Operator’s Registration. These inspections are done for safety purposes and are completed both in-house and by external contractors. The cost of performing these inspections is financed through the operating budget, therefore the costs have not been identified in annual lifecycle costing. General repair and maintenance activities are performed throughout the lifecycle of the assets. These activities include the general maintenance activities that would typically be performed on a vehicle, such as oil changes and repairs of major component parts (engine, brakes, etc.). The majority of these activities are performed in-house, with the expense flowing through a specific repair and maintenance account in the Municipalities operating budget. As these lifecycle activities are already captured in the Municipality’s operating budget and are not considered a significant operating cost, they have not been identified in the annual lifecycle costing presented in the AMP. Replacement activities involve the full replacement of vehicles or equipment at the end of their useful life. The replacement of vehicles and equipment represent a significant capital expense and form the basis of the annual lifecycle costing identified in the AMP. The Municipality’s current level of service is to replace a fleet asset once it can no longer perform its required service. The AMP assumes this would take place at the end of the asset’s useful life. Attachment 1 to FSD-030-24 Page 237 Asset Management Plan 2024 | 71 The figure below identifies the annual lifecycle costs for fleet replacements over the next ten years. Figure B4 – Annual Lifecycle Costing – Corporate Fleet ($,000) It will cost approximately $52.7 million, over the next ten years, to maintain the current level of service. The total cost, including all the costs in the backlog, is approximately $54.2 million. $1,517 $4,869 $6,831 $8,357 $5,182 $3,020 $2,845 $3,445 $6,012 $5,056 $7,109 $52,726 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 Attachment 1 to FSD-030-24 Page 238 Asset Management Plan 2024 | 72 Average Annual Lifecycle Cost The costs in Figure B4 represent the annual gross cost of maintaining Corporate Fleet assets over the next ten years. The amount of lifecycle activities varies on an annual basis, leading to significant cost variances from year- to-year. Figure B5 below removes the significant annual variances by determining the average annual cost of maintaining Corporate Fleet assets at their current level of service (i.e.: maintaining the overall dollar value of the backlog throughout the forecast period). The figure also nets off any costs where the work has already been budgeted but not yet completed. Figure B5 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) $5,464 $3,557 $5,182 $3,020 $2,845 $3,445 $6,012 $5,056 $7,109 $3,940 $4,098 $4,261 $4,432 $4,609 $4,793 $4,984 $5,183 $5,390 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 239 Asset Management Plan 2024 | 73 Alternative Lifecycle Costing The figure above identifies the average annual costs at current service levels, where the dollar value of the backlog and current asset condition distribution remain constant throughout the forecast period. The figures below provide alternative costing scenarios based on a more aggressive approach to addressing the backlog. Figure B6 provides average annual costing under a scenario in which the overall size of the backlog is reduced by 50 per cent over the ten-year forecast period. This would result in a service level enhancement in which the condition distribution would include more assets in the Good to Very Good range. Figure B6 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Reduce Backlog $5,584 $3,682 $5,312 $3,155 $2,845 $3,445 $6,012 $5,056 $7,109 $3,988 $4,147 $4,313 $4,486 $4,665 $4,852 $5,046 $5,248 $5,457 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 240 Asset Management Plan 2024 | 74 Figure B7 provides average annual costing under a scenario where the entire backlog is eliminated over the ten- year forecast period. This would result in a service level enhancement in which the condition distribution would include nearly all assets in the Good to Very Good range. Figure B7 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Eliminate Backlog The table below compares the average annual cost of maintaining current service levels (i.e.: maintaining the current dollar value of the backlog) with the alternative scenarios of reducing and eliminating the backlog over the forecast period. $5,704 $5,109 $5,442 $3,290 $2,845 $3,445 $6,012 $5,056 $7,109 $4,155 $4,322 $4,496 $4,677 $4,865 $5,061 $5,264 $5,476 $5,695 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 241 Asset Management Plan 2024 | 75 Table B6 – Average Annual Lifecycle Cost Comparison ($,000’s) 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Current Service Level $3,940 $4,098 $4,261 $4,432 $4,609 $4,793 $4,984 $5,183 $5,390 $41,690 Reduce Backlog $3,988 $4,147 $4,313 $4,486 $4,665 $4,852 $5,046 $5,248 $5,457 $42,200 Eliminate Backlog $4,155 $4,322 $4,496 $4,677 $4,865 $5,061 $5,264 $5,476 $5,695 $44,012 Attachment 1 to FSD-030-24 Page 242 Asset Management Plan 2024 | 76 Emergency Services 06 Attachment 1 to FSD-030-24 Page 243 Asset Management Plan 2024 | 77 Emergency Services Overview Clarington Emergency and Fire Services (CEFS) owns and operates a number of infrastructure assets that are used for the essential services provided by the fire crews. These assets include items used for the front-line delivery of fire protection services, along with items used for the training of front-line fire fighters. Some of the largest assets associated with CEFS are the fire stations and fire trucks. Although these assets are operated by CEFS, they are managed by other divisions within the organization. In order to ensure a consistent grouping of assets within each asset category, fire stations have been included under Corporate Facilities and fire trucks have been included under Corporate Fleet. The remaining assets pertaining to Emergency Services have been divided into separate asset sub-types. The different sub-types are provided and defined in the tables below. Table C1 – Emergency Services Assets Asset Type Asset Sub-Type Purpose Suppression Gear Bunker Suits Includes fire protection gear, such as jackets and pants, used by fire fighters when responding to an emergency. Full-time fire fighters have two sets of gear, part-time firefighters have one. Helmets Includes the helmets used by front line fire fighters when responding to an emergency. Self-Contained Breathing Apparatus (SCBA’s) Apparatus that provides an autonomous supply of atmospheric air when fighting fires. The SCBA includes the actual unit, along with one cylinder. Equipment Suppression Equipment Includes equipment used in fire suppression or in the maintenance of suppression gear. Includes thermal imaging cameras, air compressors (for SCBA cylinders), SCBA fit testers, and bunker gear washers/dryers. Attachment 1 to FSD-030-24 Page 244 Asset Management Plan 2024 | 78 Asset Type Asset Sub-Type Purpose Defibrillators Apparatus is used to control heart fibrillation by application of an electric current to the chest wall or heart. Includes the defibrillators located on trucks and in the stations. Digital Pagers Pagers used by fire fighters to notify volunteer fire fighters of an emergency. Harris Radios The radio’s used in emergency services vehicles to receive dispatch calls. Includes both mobile and portable radios for each vehicle. Training Infrastructure Training Equipment Includes various equipment used in firefighting training, such as wired headsets, voice enunciators, training props, and extinguisher training unit. State of Local Infrastructure Asset Inventory The asset inventory summary for Emergency Services is provided in the table below. The majority of replacement costing has been estimated using a combination of recent tenders for similar assets and estimates provided by staff within CEFS. In certain circumstances, replacement costing has been estimated by applying an inflation factor to historical costing. Attachment 1 to FSD-030-24 Page 245 Asset Management Plan 2024 | 79 Table C2 - Summarized Asset Inventory – Emergency Services Asset Type Asset Sub-Type Quantity Average Age (Years) Replacement Cost ($2024) Suppression Gear Bunker Suits 250 3.9 $750,000 Helmets 187 3.7 78,000 SCBA’s 43 6.0 377,000 Equipment Suppression Equipment 22 10.0 504,000 Defibrillators 12 5.0 38,000 Digital Pagers 135 7.0 135,000 Harris Radios 120 6.3 600,000 Training Infrastructure Training Equipment 10 5.7 96,000 Total 779 6.2 $2,578,000 As shown in Table C2, the total replacement cost for Emergency Services assets (excluding fire stations and fire trucks) is approximately $2.6 million. Asset Age Table C3 includes a summary of the average age of Emergency Services assets within each asset sub-type. The age of each asset is assessed and given equal weighting when deriving the average age for each sub-type. The average age for each sub-type represents the simple average of the various components within that category. The total average age for all Emergency Services assets, represents a weighted average of the different asset sub-types, based on total replacement cost. Attachment 1 to FSD-030-24 Page 246 Asset Management Plan 2024 | 80 Table C3 – Average Age and Condition – Emergency Services Asset Type Asset Sub-Type Quantity Average Age (Years) Average Estimated Useful Life Average Condition (ULC%)1 Average Condition State Suppression Gear Bunker Suits 250 3.9 10.0 Assessed Very Good Helmets 187 3.7 10.0 Assessed Very Good SCBA’s 43 6.0 15.0 Assessed Very Good Equipment Suppression Equipment 22 10.0 13.1 76% Good Defibrillators 12 5.0 7.0 Assessed Very Good Digital Pagers 135 7.0 10.0 70% Good Harris Radios 120 6.3 10.0 63% Good Training Infrastructure Training Equipment 10 5.7 8.4 67% Good Total 779 6.2 57% Good 1Average condition labelled “Assessed” indicates the asset is assessed annually to ensure it remains in Very Good condition. Each asset has also been assigned an estimated useful life based on a combination of industry standards and the Municipality’s current Capitalization Policy. The Suppression Equipment and Training Equipment sub-types include various pieces of equipment, as identified in Table C1. These various equipment types also include various useful life estimates. The estimated useful life for these sub-types reflects a weighted average of the estimated useful life of each contributing component. The figure below compares the average age with the average estimated useful life for each asset sub-type. The average age for all sub-types is within the estimate useful life. Attachment 1 to FSD-030-24 Page 247 Asset Management Plan 2024 | 81 Figure C1 – Average Age (Years) and Estimated Useful Life (Years) – Emergency Services 3.9 3.7 6.0 10.0 5.0 7.0 6.3 5.7 10.0 10.0 15.0 13.1 7.0 10.0 10.0 8.4 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Bunker Suits Helmets SCBA's Supression Equipment Defibrilators Digital Pagers Harris Radios Training Equipment Estimated Useful Life Average Age Attachment 1 to FSD-030-24 Page 248 Asset Management Plan 2024 | 82 Asset Condition Table C3 also provides the average condition rating for each of the asset sub-types within Emergency Services. The condition percentages are derived using the ULC% methodology. Certain asset types have a condition rating labelled as “Assessed”. This is to reflect the fact that these assets are subject to annual condition inspections to ensure the assets are always maintained in Very Good condition. These assets pose a significant health and safety risk if they are not maintained in Very Good condition. If a particular asset fails inspection, the asset would be immediately repaired or replaced. The average condition for all Emergency Services assets is rated as Good. The average condition rating for Emergency Services was derived using a weighted average based on the replacement value of each asset sub- type. The total average condition was derived by applying a 45 per cent ULC% to the assets rated as “Assessed”, which equates to a Very Good condition rating. The condition of each individual asset with an “Assessed” condition rating is rated as Very Good. However, for the other asset sub-types, the condition of each individual asset varies. The figure below illustrates the condition distribution within each asset sub-type. Attachment 1 to FSD-030-24 Page 249 Asset Management Plan 2024 | 83 Figure C2 – Condition Distribution – Emergency Services 100% 100% 100% 27% 100% 33% 70% 32% 100% 42% 10% 9% 25% 32% 20% 0%10%20%30%40%50%60%70%80%90%100% Bunker Suits Helmets SCBA's Supression Equipment Defibrilators Digital Pagers Harris Radios Training Equipment Very Good Good Fair Poor Very Poor Attachment 1 to FSD-030-24 Page 250 Asset Management Plan 2024 | 84 Levels of Service The levels of service for Emergency Services were developed in an effort to reflect the desires, values, and expectations of the community. The Level of Service statements are intended to capture the expectations of the community, while the performance measures are intended to quantify those expectations. The Levels of Service attributes are intended to reflect some of the key characteristics important to the organization. The Municipality’s current level of service performance is provided in the table below. Proposed levels of service and their respective targets will be identified in future iterations of the AMP. Table C4 – Current Levels of Service – Emergency Services Service Attribute Level of Service Statement Performance Measure Current Performance Cost Effective Managing Emergency Services assets in a fiscally sustainable manner Emergency Services Reinvestment Rate 7.1% Quality Ensuring Emergency Services assets are in a suitable condition for emergency response % of Emergency Services assets in Fair or better condition (FCI) 100% Lifecycle Management Strategies and Costing The Municipality undertakes three main types of lifecycle activities to ensure Emergency Services assets maintain their current level of service. Inspection activities are completed on all suppression gear and life saving devices, such as defibrillators. These inspections are completed annually to ensure the assets remain in Very Good condition. The Municipality contracts out the inspections of these assets and the expense is funded through the municipal operating budget. The Municipality does not consider this a significant operating expense; therefore, the costs are not included in the AMP. General repair and maintenance activities are performed throughout the useful life of the assets. These activities include the general maintenance required to ensure the assets reach their estimated useful life. These Attachment 1 to FSD-030-24 Page 251 Asset Management Plan 2024 | 85 expenses are funded through repair and maintenance accounts in the municipal operating budget. These operating costs are not considered significant for the purposes of the AMP and have not been identified in the annual lifecycle costing. Replacement activities involve the full replacement of assets at the end of their useful life, including the assets that are assessed on an annual basis. The replacement of Emergency Services assets represents a capital expense and forms the basis of the annual lifecycle costing identified in the AMP. The Municipality’s current level of service is to replace an asset once it can no longer perform its functional duty. The figure below identifies the annual lifecycle costing required to maintain the Municipality’s current level of service. Figure C3 – Annual Lifecycle Costing – Emergency Services ($000’s) It will cost approximately $2.3 million, over the next ten years, to maintain the current level of service. The total cost, including the cost of the backlog, is approximately $2.4 million. $89 $30 $132 $201 $286 $263 $358 $161 $348 $241 $290 $2,310 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Attachment 1 to FSD-030-24 Page 252 Asset Management Plan 2024 | 86 Average Annual Lifecycle Cost The costs in Figure C3 represent the annual gross cost of maintaining Emergency Services assets over the next ten years. The amount of lifecycle activities varies on an annual basis, leading to significant cost variances from year-to-year. Figure C4 below removes the significant annual variances by determining the average annual cost of maintaining Emergency Services assets at their current level of service (i.e.: maintaining the overall dollar value of the backlog throughout the forecast period). The figure also nets off any costs where the work has already been budgeted but not yet completed. Figure C4 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) $132 $201 $286 $263 $358 $161 $348 $241 $290 $216 $224 $233 $242 $252 $262 $273 $283 $295 $0 $50 $100 $150 $200 $250 $300 $350 $400 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 253 Asset Management Plan 2024 | 87 Alternative Lifecycle Costing The figure above identifies the average annual costs at current service levels, where the dollar value of the backlog and current asset condition distribution remain constant throughout the forecast period. The figures below provide alternative costing scenarios based on a more aggressive approach to addressing the backlog. Figure C5 provides average annual costing under a scenario in which the overall size of the backlog is reduced by 50 per cent over the ten-year forecast period. This would result in a service level enhancement in which the condition distribution would include more assets in the Good to Very Good range. Figure C5 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Reduce Backlog $155 $225 $286 $263 $358 $161 $348 $241 $290 $220 $229 $238 $247 $257 $268 $278 $289 $301 $0 $50 $100 $150 $200 $250 $300 $350 $400 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 254 Asset Management Plan 2024 | 88 Figure C6 provides average annual costing under a scenario where the entire backlog is eliminated over the ten- year forecast period. This would result in a service level enhancement in which the condition distribution would include nearly all assets in the Good to Very Good range. Figure C6 –Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Eliminate Backlog The table below compares the average annual cost of maintaining current service levels (i.e.: maintaining the current dollar value of the backlog) with the alternative scenarios of reducing and eliminating the backlog over the forecast period. $179 $249 $286 $263 $358 $161 $348 $241 $290 $224 $233 $243 $252 $263 $273 $284 $295 $307 $0 $50 $100 $150 $200 $250 $300 $350 $400 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 255 Asset Management Plan 2024 | 89 Table C5 – Average Annual Lifecycle Cost Comparison ($,000’s) 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Current Service Levels $216 $224 $233 $242 $252 $262 $273 $283 $295 $2,280 Reduce Backlog $220 $229 $238 $247 $257 $268 $278 $289 $301 $2,328 Eliminate Backlog $224 $233 $243 $252 $263 $273 $284 $295 $307 $2,375 Attachment 1 to FSD-030-24 Page 256 Asset Management Plan 2024 | 90 Information Technology 07 Attachment 1 to FSD-030-24 Page 257 Asset Management Plan 2024 | 91 Information Technology Overview Information Technology (IT) infrastructure includes various pieces of hardware and software used by the various departments and divisions throughout the Municipality. IT infrastructure also includes the telecommunications infrastructure located throughout the municipality to ensure communication channels remain open and accessible. IT infrastructure is managed by the IT division of the Finance and Technology Department but is operated by the various departments within the municipality. The Municipality’s IT infrastructure has been divided into different sub-types, based on similar characteristics and functions. The different sub-types are provided and defined in the table below. Table D1 – IT Infrastructure Assets Asset Type Asset Sub-type Description Communications Communication Towers Tower structure equipped with antennas, transmitters, and receivers that facilitate wireless communication. Wireless Links Wireless radio links used to connect remote offices to the Municipal Administration Building, allowing staff access to Internet local applications required for service delivery. Phone System Phone system used for internal and external communication. Phone system is being converted to a cloud-based software in 2024. Software Software Systems Includes the various pieces of software used by the various departments for various activities (e.g. budgeting, scheduling, accounting, etc.). Includes only the major software systems that resulted in an initial capital cost. Hardware SMART Boards Large, touch screen monitors, that allow users to interact with digital content. Attachment 1 to FSD-030-24 Page 258 Asset Management Plan 2024 | 92 Asset Type Asset Sub-type Description Laptops Various laptops used throughout the Municipality. Personal Computers (PC’s) Various desk-top computers used throughout the Municipality. Monitors Various computer monitors used throughout the Municipality. Servers Unit used to manager network resources, such as data storage, email processing, file sharing, and application hosting. Switches Unit that connects devices, such as computers, printers, and servers, to the local network. Tablets Electronic device that combines features of a smartphone and laptop. Wireless Access Points Networking hardware device that allows Wi-Fi devices to connect to a wired network. Accessories Touch panels and mini PC’s used to control electronic devices in meeting rooms and Council chambers. Projectors Output device that projects large scale visual displays. Firewalls Network security system unit that monitors and controls incoming and outgoing network traffic. Attachment 1 to FSD-030-24 Page 259 Asset Management Plan 2024 | 93 Asset Type Asset Sub-type Description Uninterrupted Power Source (UPS) Continual power system unit that provides automated backup electric power when the main power source fails. State of Local Infrastructure Asset Inventory The summarized asset inventory for IT infrastructure is presented in Table D2 below. The majority of replacement costing has been estimated using a combination of recent tenders for similar assets and estimates provided by staff within the corporate IT division. Table D2 - Summarized Asset Inventory – IT Infrastructure Asset Type Asset Sub-Type Quantity Average Age (Years) Replacement Cost ($2024) Communications Communication Towers 5 14.6 $319,000 Wireless Links 16 18 54,000 Phone System 1 6 35,000 Software Software Systems 24 9.7 4,982,000 Hardware SMART Boards 1 8.3 10,000 Laptops 181 2.2 302,000 PC's 105 5.5 84,000 Monitors 97 2.9 15,000 Servers 5 3.6 43,000 Switches 59 6.6 81,000 Tablets 33 1.3 26,000 Attachment 1 to FSD-030-24 Page 260 Asset Management Plan 2024 | 94 Asset Type Asset Sub-Type Quantity Average Age (Years) Replacement Cost ($2024) Wireless Access Points 43 2.7 41,000 Accessories 6 1.8 36,000 Projectors 2 4 2,000 Firewalls 2 6 43,000 UPS 7 8 7,000 Total 587 9.3 $6,080,200 As shown in Table D2, the total replacement cost for the Municipality’s IT infrastructure is approximately $6.08 million. The majority of the total replacement cost relates to software infrastructure. Software systems are an important component of IT infrastructure as they are used for accounting, budgeting, building permits, and various other forms of service delivery. The Municipality uses many pieces of software to perform a variety of functions. The software assets presented in the AMP include only the major software assets that resulted in a significant capital cost at acquisition. The replacement costing for software is difficult to estimate, given the rapidly changing technology and the variety of options available. IT software replacement costing, for the purposes of the AMP, was estimated by inflating the original purchase price by the Software and Software Licensing component of the Statistics Canada Informatics Professional Services Price Index. Historical data was analyzed to determine an average annual increase. The AMP also assumes that software systems will continue to be replaced by software infrastructure purchased from a supplier. Software purchases may transition to a subscription-based model in the future, where software subscriptions are provided for a monthly fee as opposed to purchasing physical systems from a supplier. This transition is dependent on a number of factors and is difficult to predict. Therefore, the AMP assumes the current acquisition model will be maintained. The Municipality is transitioning away from a physical phone system to an online model where no physical phone unit is required. The replacement cost for phone systems reflects this change. Attachment 1 to FSD-030-24 Page 261 Asset Management Plan 2024 | 95 Asset Age Table D3 includes a summary of the average age of the various IT assets within each asset sub-type. The age of each asset in the inventory is assessed and given equal weighting when deriving the average age for each sub- type. The average age for each sub-type represents the simple average of the various components within that category. The total average age for all IT assets represents a weighted average of the different sub-types, based on total replacement cost. Table D3 – Average Age and Condition – IT Assets Asset Type Asset Sub-Type Quantity Average Age (Years) Estimated Useful Life (Years) Average Condition (ULC%) Average Condition State Communications Communication Towers 5 14.6 40 Assessed1 Very Good Wireless Links 16 18 7 257% Very Poor Phone System 1 6 7 86% Good Software Software Systems 24 9.7 5 N/A2 Very Good Hardware SMART Boards 1 8.3 10 83% Good Laptops 181 2.2 4 55% Good PC's 105 5.5 4 138% Very Poor Monitors 97 2.9 4 73% Good Servers 5 3.6 4 90% Good Switches 59 6.6 4 165% Very Poor Tablets 33 1.3 4 33% Very Good Wireless Access Points 43 2.7 4 68% Good Accessories 6 1.8 4 46% Good Projectors 2 4 4 100% Fair Firewalls 2 6 4 150% Very Poor Attachment 1 to FSD-030-24 Page 262 Asset Management Plan 2024 | 96 Asset Type Asset Sub-Type Quantity Average Age (Years) Estimated Useful Life (Years) Average Condition (ULC%) Average Condition State UPS 7 8 4 200% Very Poor Total 587 9.3 50% Good 1Average condition labelled “Assessed” indicates the asset is assessed annually to ensure it remains in Very Good condition. 2Condition rating for Software Systems is not provided as these assets are continuously maintained to ensure they remain in Very Good condition. Each asset has also been assigned an estimated useful life based on industry standards and the Municipality’s current Capitalization Policy. Figure D1 below compares the average age with the average estimated useful life for each asset sub-type. The average age, for the majority of the Municipality’s IT assets, is within the estimate useful life. Figure D1 – Average Age (Years) and Estimated Useful Life (Years) – IT Assets 14.6 18.0 6.0 9.7 8.3 3.6 40 7 7 5 10 4 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 Communication Towers Wireless Radios Phone System Software Systems SMART Boards Hardware Estimated Useful Life Average Age Attachment 1 to FSD-030-24 Page 263 Asset Management Plan 2024 | 97 Asset Condition Table D3 also provides the average condition rating for each of the asset sub-types within IT. The condition percentages are derived using the ULC% methodology. Communication Towers have been assigned a condition rating of “Assessed”. This reflects the fact that the towers are inspected on an annual basis to ensure they remain in Very Good condition. If a structural deficiency is identified during the inspection, corrective action is taken immediately. These assets will always be maintained in Very Good condition. Software Systems have been assigned a condition rating of “N/A”. This is to reflect the fact that all software systems retained by the Municipality are updated and maintained on a consistent basis to ensure security and integrity of the systems. Although these systems are not assessed for condition, they are consistently supported and maintained by the supplier to ensure they continue to meet the requirements of the IT division. Therefore, these assets will always be maintained in Very Good condition. The average condition for all IT assets is rated as Good. The average condition rating for IT infrastructure was derived using a weighted average of all asset sub-types, based on total replacement cost. The total average was derived by applying a 45 per cent ULC% to the assets rated as “Assessed” or “N/A”, which equates to a Very Good condition rating. The condition of each individual asset with an “Assessed” and “N/A” condition rating is Very Good. However, for the Hardware sub-asset categories, the condition of each individual asset varies. The figure below illustrates the condition distribution within the Hardware sub-asset type. Attachment 1 to FSD-030-24 Page 264 Asset Management Plan 2024 | 98 Figure D2 – Condition Distribution – IT Infrastructure – Hardware 31% 1% 61% 27% 70% 7% 50% 43% 100% 55% 1% 21% 80% 30% 93% 33% 7% 8% 1% 8% 17% 100% 5% 55% 3% 2% 35% 18% 20% 61% 100% 57% 0%10%20%30%40%50%60%70%80%90%100% SMART Boards Laptops PC's Monitors Servers Switches Tablets Wireless Access Points Accessories Projectors Firewalls UPS Very Good Good Fair Poor Very Poor Attachment 1 to FSD-030-24 Page 265 Asset Management Plan 2024 | 99 Levels of Service The levels of service for IT were developed in an effort to reflect the desires, values, and expectations of the community. The Level of Service statements are intended to capture the expectations of the community, while the performance measures are intended to quantify those expectations. The Levels of Service attributes are intended to reflect some of the key characteristics important to the organization. The Municipality’s current level of service performance is provided in the table below. Proposed levels of services and their respective targets will be identified in future iterations of the AMP. Table D4 – Current Levels of Service – IT Assets Service Attribute Level of Service Statement Performance Measure Current Performance Cost Effective Managing IT assets in a fiscally sustainable manner IT Infrastructure Facilities Reinvestment Rate 15.4% Customer Service Provide responsive IT support to municipal staff Average time to resolve a ticket 1d 19h 18m Quality Ensuring IT assets remain in a suitable condition for administrative use % of IT Hardware in Fair or better condition (FCI) 69% Reliability Providing reliable IT connectivity for municipal administration Percent average database availability (excluding planned downtime) 99% Attachment 1 to FSD-030-24 Page 266 Asset Management Plan 2024 | 100 Lifecycle Management Strategies and Costing The Municipality undertakes three main types of lifecycle activities to ensure IT assets maintain their current level of service. Inspection activities are completed annually on all communication towers. These inspections are done to ensure the structural integrity of this critical infrastructure and to ensure the condition rating remains Very Good. The Municipality contracts out the inspections of these assets and the expense is funded through the operating budget. The Municipality does not consider this a significant operating expense; therefore, the costs are not included in the AMP. General repair and maintenance activities are performed throughout the lifecycle of the assets. These activities include the general maintenance required to ensure the assets reach their estimated useful life. These expenses are funded through repair and maintenance accounts in the Municipalities operating budget. These operating costs are not considered significant for the purposes of the AMP and have not been identified in the annual lifecycle costing. Replacement activities involve the full replacement of assets at the end of their lifecycle, including the assets that are assessed on an annual basis. The replacement of IT assets represents a capital expense and forms the basis of the annual lifecycle costing identified in the AMP. The Municipality’s current level of service is to replace an asset once it can no longer perform its functional duty. The AMP assumes this will occur at the end of the asset’s useful life. Attachment 1 to FSD-030-24 Page 267 Asset Management Plan 2024 | 101 The figure below identifies the annual lifecycle costing required to maintain the Municipality’s current level of service. Figure D3 – Annual Lifecycle Costing – IT Infrastructure ($000’s) It will cost approximately $5.2 million, over the next ten years, to maintain the current level of service. The total cost, including all the costs included in the backlog, is approximately $7.9 million. The large cost in 2031 is largely the result of the contract expiration for the AMANDA software system. The contract for the AMANDA system expires in 2031, at which time a renewal of the contract or a replacement of the software will be required. It is too $2,769 $35 $99 $181 $200 $43 $375 $212 $3,531 $51 $438 $5,166 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 Attachment 1 to FSD-030-24 Page 268 Asset Management Plan 2024 | 102 early to determine which option will be chosen; therefore, to be prudent, the AMP is assuming replacement. The current replacement cost for the AMANDA software is approximately $2.4 million. Backlog The large backlog primarily consists of software system replacement costs. Many software systems are beyond their estimated useful life of five years. Software systems are assigned an estimated useful life of five years to reflect the rapid pace of technological advancement. Despite the fact that most systems are beyond their estimated useful life, the systems are still being updated and maintained by both the supplier and IT staff; therefore, the condition rating for these assets remains Very Good. It is difficult to predict when software system replacement will occur as software would only be replaced if the supplier stops supporting the system or technological advancements lead users to request a change. Given the unpredictability, all software systems have been placed in the backlog, with the exception of the AMANDA system that is under contract until 2031. Again, given the rapid pace of technological advancement, there is a reasonable chance that some, if not all, software systems could require replacement within the next ten years. Average Annual Lifecycle Costing The costs in Figure D3 represent the annual gross cost of maintaining IT assets over the next ten years. The amount of lifecycle activities varies on an annual basis, leading to significant cost variances from year-to-year. Figure D4 below removes the significant annual variances by determining the average annual cost of maintaining IT assets at their current level of service (i.e.: maintaining the overall dollar value of the backlog throughout the forecast period). The figure also nets off any costs where the work has already been budgeted but not yet completed. Attachment 1 to FSD-030-24 Page 269 Asset Management Plan 2024 | 103 Figure D4 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) Alternative Lifecycle Costing The figure above identifies the average annual costs at current service levels, where the dollar value of the backlog and current asset condition distribution remain constant throughout the forecast period. The figures below provide alternative costing scenarios based on a more aggressive approach to addressing the backlog. $99 $181 $200 $43 $375 $212 $3,531 $51 $438 $489 $508 $527 $547 $567 $589 $611 $635 $659 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 270 Asset Management Plan 2024 | 104 Figure D5 provides average annual costing under a scenario in which the overall size of the backlog is reduced by 50 per cent over the ten-year forecast period. This would result in a service level enhancement in which the condition distribution would include more assets in the Good to Very Good range. Figure D5 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Reduce Backlog Figure D6 provides average annual costing under a scenario where the entire backlog is eliminated over the ten- year forecast period. This would result in a service level enhancement in which the condition distribution would include nearly all assets in the Good to Very Good range. $188 $273 $296 $143 $478 $320 $3,643 $167 $560 $578 $600 $622 $646 $671 $697 $723 $751 $780 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 271 Asset Management Plan 2024 | 105 Figure D6 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Eliminate Backlog The table below compares the average annual cost of maintaining current service levels (i.e.: maintaining the current dollar value of the backlog) with the alternative scenarios of reducing and eliminating the backlog over the forecast period. $348 $440 $469 $323 $665 $515 $3,846 $378 $779 $738 $766 $796 $826 $858 $891 $926 $962 $999 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 272 Asset Management Plan 2024 | 106 Table D5 – Average Annual Lifecycle Cost Comparison ($,000’s) 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Current Service Level $489 $508 $527 $547 $567 $589 $611 $635 $659 $5,132 Reduce Backlog $578 $600 $622 $646 $671 $697 $723 $751 $780 $6,068 Eliminate Backlog $738 $766 $796 $826 $858 $891 $926 $962 $999 $7,761 Attachment 1 to FSD-030-24 Page 273 Asset Management Plan 2024 | 107 Parking Infrastructure 08 Attachment 1 to FSD-030-24 Page 274 Asset Management Plan 2024 | 108 Parking Infrastructure Overview Parking Infrastructure includes all the infrastructure used to provide parking services within the Municipality, including parking lots, parking lot lights, central parking meters, and EV chargers. The Municipality also owns various coin-based on-street parking meters in the downtown area. These meters have not been included in the AMP as they are all scheduled to be replaced by centralized meters in the Fall of 2024. The new on-street central meters will be included in future iterations of the AMP, after they have been acquired and installed. The Municipality’s Parking Infrastructure assets have been divided into different asset sub-types, based on similar characteristics and functions. The different sub-types are provided and defined in the Table below. Table E1 – Parking Infrastructure Assets Asset Type Asset Sub-type Description Parking Lots Paved Parking Lots Various parking lots, throughout the Municipality, that are paved with asphalt. Gravel Parking Lots Various parking lots, throughout the Municipality, that consist of a gravel base. Parking Lot Infrastructure Parking Lot Lights Includes the light pole and luminaire used to provide lighting to municipally owned parking lots. Central Parking Lot Meters Centralized pay stations used in municipally owned parking lots. Does not include on-street parking. EV Charging Stations Stations used to charge electric vehicles. Includes both the charging units and pedestals. Attachment 1 to FSD-030-24 Page 275 Asset Management Plan 2024 | 109 State of Local Infrastructure Asset Inventory The summarized asset inventory for Parking Infrastructure is presented in the table below. Replacement costing has been derived using a combination of recent tenders for similar assets and estimates provided by municipal staff. In certain circumstances, replacement costing has been estimated by applying an inflation factor to historical costing. Table E2 - Summarized Asset Inventory – Parking Infrastructure Asset Type Asset Sub-type Quantity Average Age (Years) Replacement Cost ($2024) Parking Lots Paved Parking Lots 57 19.1 $22,029,000 Gravel Parking Lots 23 33.0 4,297,000 Parking Lot Infrastructure Parking Lot Lights1 136 31.7 1,302,000 Central Parking Lot Meters 5 10.4 41,000 EV Charging Stations 15 2.6 206,000 Total 236 21.7 $27,875,000 1 Quantity refers to the number of parking lot light poles. Replacement cost includes both light poles and luminaires. Certain light poles may have multiple luminaires. As shown in Table E2, the total replacement cost for Parking Infrastructure assets is approximately $27.9 million. Most of the replacement costing relates to the replacement of parking lots, which account for over 94 per cent of total replacement costing. The replacement costing for parking lots is based on an average cost per square meter that has been applied to the total square meters of each parking lot. The cost includes the full replacement of the parking lot, including excavation work. The same cost per square meter was applied to estimating the replacement cost of gravel Attachment 1 to FSD-030-24 Page 276 Asset Management Plan 2024 | 110 parking lots. The assumption used in the AMP is that all gravel parking lots will be converted to paved lots at the time of replacement. Replacement costing for parking lot lights assumes a full replacement of both the pole and luminaire. New light poles are now coming equipped with lifetime warranties while new LED luminaires have an estimated useful life of 15-20 years. Given the assumed age of parking lot lots, the AMP has assumed a full replacement of both light pole and luminaire at the time of replacement. Asset Age Table E3 includes a summary of the average age of the various Parking Infrastructure assets within each asset sub-type. The age of each asset in the inventory is assessed and given equal weighting when deriving the average age for each sub-type. The average age for each sub-type represents the simple average of the various components within that category. The total average age, for all Parking Infrastructure assets, represents a weighted average of the different sub-types, based on total replacement cost. Table E3 – Average Age and Condition – Parking Infrastructure Asset Type Asset Sub-type Quantity Average Age (Years) Estimated Useful Life (Years) Average Condition (ULC%) Average Condition State Parking Lots Paved Parking Lots 57 19.1 35 55% Good Gravel Parking Lots 23 33 15 220% Very Poor Parking Lot Infrastructure Parking Lot Lights 136 31.7 30 106% Poor Central Parking Lot Meters 5 10.4 15 69% Good EV Charging Stations 15 2.6 8 33% Very Good Total 236 21.7 82% Good Attachment 1 to FSD-030-24 Page 277 Asset Management Plan 2024 | 111 The age of certain individual parking lot lights is unknown. In this circumstance, the age has been estimated based on the age of the facility in which the lights are located. The age also reflects the age of the light pole as the luminaires have likely been replaced a few times throughout the lifecycle. Each asset has also been assigned an estimated useful life based on industry standards and the Municipality’s current Capitalization Policy. Figure E1 below compares the average age with the average estimated useful life for each asset sub-type. The average age, for the majority of Parking Infrastructure sub-types, is within the estimated useful life. Figure E1 – Average Age (Years) and Estimated Useful Life (Years) – Parking Infrastructure 19.1 33.0 31.7 10.4 2.6 35.0 15.0 30.0 15.0 8.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Paved Parking Lots Gravel Parking Lots Parking Lot Lights Central Meters EV Charging Stations Estimated Useful Life Average Age Attachment 1 to FSD-030-24 Page 278 Asset Management Plan 2024 | 112 Asset Condition Table E3 also provides the average condition rating for each of the asset sub-types within Parking Infrastructure. The condition assessments have been derived using the ULC% methodology. The average condition for all Parking Infrastructure assets is rated as Good. This average condition rating was derived using a weighted average based on the replacement cost of each asset sub-type. Although the overall condition is assessed as Good, the actual condition of the various assets within each sub- type varies. The figure below illustrates the condition distribution within each specific sub-asset type. Figure E2 – Condition Distribution – Parking Infrastructure 25% 4% 13% 60% 86% 28% 8% 33% 14% 8% 7% 8% 8% 27% 32% 79% 20% 40% 0%10%20%30%40%50%60%70%80%90%100% Paved Parking Lots Gravel Parking Lots Parking Lot Lights Central Meters EV Charging Stations Very Good Good Fair Poor Very Poor Attachment 1 to FSD-030-24 Page 279 Asset Management Plan 2024 | 113 Levels of Service The levels of service for Parking Infrastructure were developed in an effort to reflect the desires, values, and expectations of the community. The Level of Service statements are intended to capture the expectations of the community, while the performance measures are intended to quantify those expectations. The Levels of Service attributes are intended to reflect the key characteristics important to the organization. The Municipality’s current level of service performance is provided in the table below. Proposed levels of services and their respective targets will be identified in future iterations of the AMP. Table E4 – Current Levels of Service – Parking Infrastructure Service Attribute Level of Service Statement Performance Measure Current Performance Cost Effective Providing Parking services to the community in a fiscally sustainable manner Parking Infrastructure Reinvestment Rate 3.0% Accessibility Ensuring an adequate supply of parking at Municipal facilities # of parking lot spaces per 1,000 population 29 Quality Providing Parking Infrastructure assets in an acceptable condition % of parking lots in fair or better condition 48% % of parking infrastructure in fair or better condition 69% Sustainability Providing environmentally sustainable Parking services for the community # of EV charging stations per 1,000 population 0.22 EV Charger Utilization Rate 11.4% Attachment 1 to FSD-030-24 Page 280 Asset Management Plan 2024 | 114 Lifecycle Management Strategies and Costing The Municipality undertakes three main types of lifecycle activities to ensure Parking Infrastructure assets maintain their current level of service. Inspection activities are completed periodically to assess the overall condition of parking lots and to determine the level of maintenance activity required. These inspections have historically been completed by consultants. However, annual visual inspections are expected to be completed by staff on a go-forward basis. As these inspections become incorporated into staff responsibilities, there will be no additional cost to the Municipality beyond staff time. General repair and maintenance activities are performed throughout the lifecycle of the assets. These activities include the general maintenance required to ensure the assets remain in good working order. General repair and maintenance activities are either completed in-house or are funded through the annual operating budget. These expenses are not considered significant for the purposes of the AMP and have not been included in annual lifecycle costing. Replacement activities involve the full replacement of assets at the end of their lifecycle. The replacement of Parking Infrastructure assets represents a capital expense and forms the basis of the annual lifecycle costing identified in the AMP. The Municipality’s current level of service is to replace an asset once it can no longer perform its functional duty. Attachment 1 to FSD-030-24 Page 281 Asset Management Plan 2024 | 115 The figure below identifies the annual lifecycle costing required to maintain the Municipality’s current level of service. Figure E3 – Annual Lifecycle Costing – Parking Infrastructure ($000’s) It will cost approximately $6.4 million over the next ten years to maintain the current level of service. The total cost, including all the costs included in the backlog, would be approximately $14.4 million. Backlog The backlog for Parking Infrastructure consists mainly of paved and gravel parking lots that are beyond their estimated useful life. The AMP assumes that gravel parking lots would be replaced by paved lots at the time of $8,076 $391 $363 $1,010 $919 $0 $67 $139 $131 $2,616 $784 $6,421 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 Attachment 1 to FSD-030-24 Page 282 Asset Management Plan 2024 | 116 replacement. However, although most gravel parking lots are beyond their estimated useful life of 15 years, it is unlikely that these lots would require paving within the ten-year forecast period. As these lots are likely to maintain their functional duty over the ten-year forecast period, they represent a theoretical backlog cost as opposed to a legitimate backlog cost. The paved parking lots in the backlog represent a legitimate backlog cost as the condition of a paved lot does start to deteriorate as it reaches the end of its useful life. There is a higher likelihood that a paved lot, at the end of its useful life, would require attention within the ten-year forecast period. Figure E4 below provides the annual lifecycle costing, with the exclusion of gravel parking lots from the backlog. Figure E4 – Annual Lifecycle Costing – Parking Infrastructure ($000’s) – Remove Theoretical Backlog $4,226 $391 $363 $1,010 $919 $0 $67 $139 $131 $2,616 $784 $6,421 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 Attachment 1 to FSD-030-24 Page 283 Asset Management Plan 2024 | 117 Average Annual Lifecycle Cost The costs in Figure E4 represent the annual gross cost of maintaining Parking Infrastructure assets over the next ten years. The amount of lifecycle activities varies on an annual basis, leading to significant cost variances from year-to-year. Figure E5 below removes the significant annual variances by determining the average annual cost of maintaining Parking Infrastructure assets at their current level of service (i.e.: maintaining the overall dollar value of the backlog throughout the forecast period). The figure also nets off any costs where the work has already been budgeted but not yet completed. Figure E5 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) $363 $1,010 $919 $0 $67 $139 $131 $2,616 $784 $572 $594 $617 $642 $667 $693 $720 $748 $778 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 284 Asset Management Plan 2024 | 118 Alternative Lifecycle Costing The figure above identifies the average annual costs at current service levels, where the dollar value of the backlog and current asset condition distribution remain constant throughout the forecast period. The figures below provide alternative costing scenarios based on a more aggressive approach to addressing the backlog. Figure E6 provides average annual costing under a scenario in which the overall size of the backlog is reduced by 50 per cent over the ten-year forecast period. This would result in a service level enhancement in which the condition distribution would include more assets in the Good to Very Good range. Figure E6 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Reduce Backlog $581 $1,236 $1,154 $244 $321 $403 $406 $2,902 $1,081 $789 $820 $852 $886 $921 $957 $995 $1,034 $1,075 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 285 Asset Management Plan 2024 | 119 Figure E7 provides average annual costing under a scenario where the entire backlog is eliminated over the ten- year forecast period. This would result in a service level enhancement in which the condition distribution would include nearly all assets in the Good to Very Good range. Figure E7 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Eliminate Backlog The table below compares the average annual cost of maintaining current service levels (i.e.: maintaining the current dollar value of the backlog) with the alternative scenarios of reducing and eliminating the backlog over the forecast period. $798 $1,462 $1,389 $489 $575 $668 $681 $3,188 $1,379 $1,006 $1,046 $1,087 $1,130 $1,175 $1,221 $1,270 $1,320 $1,372 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 286 Asset Management Plan 2024 | 120 Table E5 – Average Annual Lifecycle Cost Comparison ($,000’s) 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Current Service Level $572 $594 $617 $642 $667 $693 $720 $748 $778 $6,030 Reduce Backlog $789 $820 $852 $886 $921 $957 $995 $1,034 $1,075 $8,330 Eliminate Backlog $1,006 $1,046 $1,087 $1,130 $1,175 $1,221 $1,270 $1,320 $1,372 $10,629 Attachment 1 to FSD-030-24 Page 287 Asset Management Plan 2024 | 121 Parks 09 Attachment 1 to FSD-030-24 Page 288 Asset Management Plan 2024 | 122 Parks Overview Parks infrastructure includes all the infrastructure used to provide parks services within the Municipality, including outdoor sporting activities and outdoor recreation. Included in Parks infrastructure are playgrounds, playfields (soccer, baseball, etc.), play courts (tennis, basketball, etc.), along with various other assets related to outdoor activities. The majority of Parks assets are operated by the Public Works division within the Public Services Department. The Municipality’s Parks assets have been divided into different asset sub-types, based on similar characteristics and functions. The different sub-types are provided and defined in the table below. Table F1 – Park Assets Asset Type Asset Sub-type Purpose Play Courts Tennis Courts Various outdoor tennis courts across the Municipality. Includes combination of asphalt and acrylic surfaces. Basketball Courts Includes both full basketball courts and half courts. Includes combination of asphalt and acrylic surfaces. Pickleball Courts Various pickleball courts across the Municipality. Includes combination of asphalt and acrylic surfaces. Play Fields Softball Fields Various softball fields across the Municipality. Includes combination of red clay and dirt infield surfaces. Baseball Fields Various baseball fields across the Municipality. Includes combination of red clay and dirt infield surfaces. Soccer Fields Includes both full size soccer fields and junior fields across the Municipality. Lacrosse Bowl Outdoor bowl intended for lacrosse. Includes paved surface, boards, and netting. Football Fields Includes a grass-surface, full sized football field. Cricket Fields Includes a concrete pad located on former soccer fields intended for cricket use. Attachment 1 to FSD-030-24 Page 289 Asset Management Plan 2024 | 123 Asset Type Asset Sub-type Purpose Playgrounds Playground Equipment Includes the play structures and the wood chip base at various playground locations. Outdoor Fitness Equipment Includes outdoor step climber, ladder, inclined crunch bench, and pullup bars located at Rickard Park. Splashpads Includes various splash pad play structures and rubber surfaces. Various locations across the Municipality Park Structures/Amenities Sports Field Lights Includes both the pole and luminaire used to illuminate tennis courts, soccer fields, and baseball/softball fields. Park Lights Luminaires used to illuminate various parks across the Municipality. Shade Structures Includes both steel and wood gazebos and pergolas located at various parks across the Municipality. Park Washrooms Washroom facilities located at various parks across the Municipality Miscellaneous Structures Includes the Rotary Park clock tower, Bowmanville Valley wooden staircase, and viewing decks at the Samuel Wilmot Nature Area. Trails Park Trails/Walkways Includes paved, brick, and granular trails located at various parks across the Municipality. Non-Park Trails Includes paved and granular trails located outside the Municipality’s Park network. Waterfront Trails Includes paved and granular trails that run along the Municipality’s waterfront. Multi-Use Paths Includes off-road multi-use paths at various locations across the Municipality. Miscellaneous Columbarium’s Structures for the public storage of funerary urns. Skateboard Parks Various skateboard parks and associated infrastructure located throughout the Municipality Underground Waste Containers Large waste containers with underground storage capacity. Attachment 1 to FSD-030-24 Page 290 Asset Management Plan 2024 | 124 Asset Type Asset Sub-type Purpose Other Miscellaneous Includes fountains/monuments, outdoor pool, fish ladder equipment, bleachers, scoreboards, boat launches, trail netting, and cricket equipment. State of Local Infrastructure Asset Inventory The summarized asset inventory for Parks assets is presented in the table below. Replacement costing has been derived using a combination of recent tenders for similar assets and estimates provided by municipal staff. In certain circumstances, replacement costing has been estimated by applying an inflation factor to historical costing. Table F2 - Summarized Asset Inventory – Parks Asset Type Asset Sub-type Quantity Average Age (Years) Replacement Cost ($2024) Courts Tennis Courts 11 15.0 $1,300,000 Basketball Courts 23 18.4 1,307,000 Pickleball Courts 6 2.5 362,000 Play Fields Softball 23 30.9 8,107,000 Baseball 7 28.9 2,823,000 Soccer 42 24.9 10,464,000 Lacrosse Bowl 1 19.0 956,000 Football 1 16.0 221,000 Cricket 1 1.0 230,000 Playgrounds Playground Equipment 62 11.0 8,520,000 Outdoor Fitness Equipment 4 6.0 32,000 Attachment 1 to FSD-030-24 Page 291 Asset Management Plan 2024 | 125 Asset Type Asset Sub-type Quantity Average Age (Years) Replacement Cost ($2024) Splashpads 16 15.0 3,362,000 Park Structures/Amenities Field Lights 112 23.0 2,397,000 Park Lights 129 18.0 2,020,000 Shade Structures 39 15.7 1,887,000 Park Washrooms 6 25.8 4,124,000 Miscellaneous Structures 3 20.7 594,000 Trails Park Trails/Walkways 73 19.0 3,163,000 Non-Park Trails 17 12.2 2,655,000 Waterfront Trails 11 14.5 2,290,000 Multi-Use Paths 3 3.7 421,000 Miscellaneous Columbarium’s 5 7.8 845,000 Skateboard Parks 5 13.8 1,523,000 Underground Waste Containers 15 10.9 173,000 Other Miscellaneous 14 8.1 1,989,000 Total 629 20.5 $61,765,000 As shown in Table F2, the total replacement cost for Parks assets is approximately $61.8 million. Playgrounds and play fields account for over half of the total replacement value ($34.7 million). Asset Age Table F3 includes a summary of the average age of the various Parks assets within each asset sub-type. The age of each individual asset in the inventory is assessed and given equal weighting when deriving the average age for each sub-type. The average age for each sub-type represents the simple average of the various components within that category. The total average age, for all Parks assets, represents a weighted average of the different sub-types, based on total replacement cost. Attachment 1 to FSD-030-24 Page 292 Asset Management Plan 2024 | 126 Table F3 – Average Age and Condition – Parks Asset Type Asset Sub-Type Quantity Average Age (Years) Estimated Useful Life (Years) Average Condition (ULC%) Average Condition State Courts Tennis Courts 11 15.0 20 75% Good Basketball Courts 23 18.4 20 92% Fair Pickleball Courts 6 2.5 20 13% Very Good Play Fields Softball 23 30.9 25 124% Poor Baseball 7 28.9 25 115% Poor Soccer 42 24.9 25 100% Fair Lacrosse Bowl 1 19.0 25 76% Good Football 1 16.0 25 80% Good Cricket 1 1.0 25 4% Very Good Playgrounds Playground Equipment 62 11.0 15 73% Good Outdoor Fitness Equipment 4 6.0 15 40% Very Good Splashpads 16 15.0 20 75% Good Park Structures/ Amenities Field Lights 112 23.0 25 92% Fair Park Lights 129 18.0 20 90% Good Shade Structures 39 15.7 27 58% Good Attachment 1 to FSD-030-24 Page 293 Asset Management Plan 2024 | 127 Asset Type Asset Sub-Type Quantity Average Age (Years) Estimated Useful Life (Years) Average Condition (ULC%) Average Condition State Park Washrooms 6 25.8 45 57% Good Miscellaneous Structures 3 20.7 33 56% Good Trails Park Trails/Walkways 73 19.0 22 88% Fair Non-Park Trails 17 12.2 19 65% Good Waterfront Trails 11 14.5 19 78% Poor Multi-Use Paths 3 3.7 20 18% Very Good Miscellaneous Columbarium’s 5 7.8 50 16% Very Good Skateboard Parks 5 13.8 25 55% Good Underground Waste Containers 15 10.9 15 73% Good Other Miscellaneous 14 8.1 24.1 41% Very Good Total 629 20.5 84% Good Each asset has also been assigned an estimated useful life based on industry standards and the Municipality’s current Capitalization Policy. Although the asset sub-types are structured to include similar assets, some sub-types include different estimated useful lives for the underlying assets. This is largely the result of different materials being used to produce the same asset (e.g. wooden shade structure versus a steel structure). This being the case, an average estimated useful life has been provided for each asset sub-type. Averages represent the average of the useful lives of the underlying assets within the asset sub-type, weighted by replacement cost. Attachment 1 to FSD-030-24 Page 294 Asset Management Plan 2024 | 128 The Other Miscellaneous sub-type includes a wide variety of assets with a wide variety of estimated useful lives. The average age for this sub-type represents a weighted average for the various components within the sub-type, based on total replacement cost. Figures F1 and F2 compare the average age with the average estimated useful life for each asset sub-type. The average age, for the majority of Parks infrastructure sub-types, is within the estimate useful life. Figure F1 – Average Age (Years) and Estimated Useful Life (Years) – Courts, Fields, and Playgrounds 15.0 18.4 2.5 30.9 28.9 24.7 15.6 11.0 6.0 15.0 20.0 20.0 20.0 25.0 25.0 25.0 25.0 15.0 15.0 20.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Tennis Courts Basketball Courts Pickleball Courts Softball Fields Baseball Fields Soccer Fields Other Sports Fields Playground Equipment Outdoor Fitness Equipment Splashpads Estimated Useful Life Average Age Attachment 1 to FSD-030-24 Page 295 Asset Management Plan 2024 | 129 Figure F2 - Average Age (Years) and Estimated Useful Life (Years) – Structures and Trails 23.0 17.6 15.7 25.8 20.7 19.0 12.2 14.5 3.7 22.2 20.0 20.0 27.0 45.0 32.5 21.5 18.8 18.6 20.0 31.7 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 Field Lights Park Lights Shade Structures Park Washrooms Miscellaneous Structures Park Trails/Walkways Non-Park Trails Waterfront Trails Multi-Use Paths Miscellaneous Estimated Useful Life Average Age Attachment 1 to FSD-030-24 Page 296 Asset Management Plan 2024 | 130 Asset Condition Table F3 also provides the average condition rating for each of the Parks asset sub-types. The condition assessments have been derived using the ULC% methodology. The average condition for all Parks assets is rated as Good. This average condition rating was derived using a weighted average based on the replacement cost of each asset sub-type. Although the overall condition is assessed as Good, the actual condition of the various assets within each sub-type varies. The figures below illustrate the condition distribution within each specific sub-type. Figure F3 – Condition Distribution – Courts, Fields, and Playgrounds 50% 35% 100% 9% 14% 33% 32% 100% 19% 17% 9% 13% 29% 31% 67% 32% 38% 13% 4% 2% 2% 6% 17% 17% 29% 19% 13% 31% 33% 26% 57% 43% 33% 21% 6% 0%10%20%30%40%50%60%70%80%90%100% Tennis Courts Basketball Courts Pickleball Courts Softball Baseball Soccer Other Sports Fields Playground Equipment Outdoor Fitness Equipment Splashpads Very Good Good Fair Poor Very Poor Attachment 1 to FSD-030-24 Page 297 Asset Management Plan 2024 | 131 Figure F4 – Condition Distribution – Park Structures and Trails The condition of the asset is largely dependent on the asset age. The asset age is based on the year of initial installation. Many assets undergo routine maintenance activities (e.g. soccer fields, baseball fields, etc.) to ensure the asset is suitable for activity. It is possible that, given the routine maintenance of the asset, the actual structural condition of the asset is better than what is reflected in the ULC%. 10% 22% 43% 33% 25% 25% 41% 27% 100% 42% 32% 32% 33% 67% 50% 27% 18% 37% 45% 12% 13% 7% 12% 32% 5% 5% 8% 24% 18% 5% 26% 29% 8% 25% 33% 6% 18% 8% 0%10%20%30%40%50%60%70%80%90%100% Field Lights Park Lights Shade Structures Park Washrooms Miscellaneous Structures Park Trails/Walkways Non-Park Trails Waterfront Trails Multi-Use Paths Miscellaneous Very Good Good Fair Poor Very Poor Attachment 1 to FSD-030-24 Page 298 Asset Management Plan 2024 | 132 Levels of Service The levels of service for Parks were developed in an effort to reflect the desires, values, and expectations of the community. The Level of Service statements are intended to capture the expectations of the community, while the performance measures are intended to quantify those expectations. The Levels of Service attributes are intended to reflect some key characteristics important to the organization. The Municipality’s current level of service performance is provided in the table below. Proposed levels of services and their respective targets will be identified in future iterations of the AMP. Table F4 – Current Levels of Service – Parks Service Attribute Level of Service Statement Performance Measure Current Performance Cost Effective Providing Parks services to the community in a fiscally sustainable manner Parks infrastructure Reinvestment Rate 3.5% Accessibility Ensuring reasonable availability of park amenities for the community Number of sports fields/courts per 1,000 population 0.37 Number of playgrounds per 1,000 population 0.58 Number of splashpads per 1,000 population 0.15 Kilometers of park trails per 1,000 population 2.66 Quality Providing Parks assets in an acceptable condition % of sports fields/courts in fair or better condition (age based) 0.47 % of playgrounds in fair or better condition (age based) 0.63 % of splashpads in fair or better condition 0.68 Sustainability Providing environmentally sustainable Parks services for the community Annual electric energy consumption for parks services, per 1,000 population 1,940 kWh Attachment 1 to FSD-030-24 Page 299 Asset Management Plan 2024 | 133 Service Attribute Level of Service Statement Performance Measure Current Performance Annual Propane consumption for parks services, per 1,000 population 90 m3 Annual water consumption for parks services, per 1,000 population 575 m3 Lifecycle Management Strategies and Costing The Municipality undertakes four main types of lifecycle activities to ensure Parks assets maintain their current level of service. Inspection activities are completed periodically to assess the condition of various assets and to determine the level of maintenance activity required. These inspections have historically been completed by consultants. However, annual visual inspections are expected to be completed by staff on a go-forward basis. As these inspections become incorporated into staff responsibilities, there will be no additional cost to the Municipality beyond staff time. General repair and maintenance activities are performed throughout the lifecycle of an asset. These activities include the general maintenance required to ensure the assets remain in good working order. General repair and maintenance activities are either completed in-house or are funded through the annual operating budget. These expenses are not considered significant for the purposes of the AMP and have not been included in annual lifecycle costing. Rehabilitation activities include larger preventative maintenance activities typically performed on the asset at mid-life. Rehabilitation activities include planned activities that are performed on assets to ensure they reach their estimated useful life. These activities result in a capital cost to the Municipality and have been included in the lifecycle costing identified in the AMP. Regularly scheduled rehabilitation activities are only performed on a small sub-set of asset types as most Parks assets will reach their estimated useful life through minor repair and maintenance activities. The rehabilitation activities for Parks assets are presented in the table below. Attachment 1 to FSD-030-24 Page 300 Asset Management Plan 2024 | 134 Table F5 – Rehabilitation Activities – Parks Assets Sub-Asset Type Activity Estimated Cost ($2024) Frequency Tennis Courts Resurfacing $37 /sq. m 7 years Pickleball Courts Resurfacing $37 /sq. m 7 years Splashpads Resurfacing $17,000 10 years Replacement activities involve the full replacement of assets at the end of their useful life. The replacement of Parks assets represents a capital expense and forms the majority of the annual lifecycle costing identified in the AMP. The Municipality’s current level of service is to replace an asset once it can no longer perform its functional duty. The AMP assumes an asset will no longer be able to perform its functional duty at the end of its useful life. The figure below identifies the annual lifecycle costing required to maintain the Municipality’s current level of service. Figure F5 – Annual Lifecycle Costing – Parks ($000’s) $23,062 $621 $1,209 $2,080 $2,756 $1,331 $1,693 $1,825 $2,368 $2,213 $3,532 $19,627 $0 $5,000 $10,000 $15,000 $20,000 $25,000 Attachment 1 to FSD-030-24 Page 301 Asset Management Plan 2024 | 135 It will cost approximately $19.6 million over the next ten years to maintain the current level of service. The total cost, including all the costs included in the backlog, would be approximately $42.7 million. Backlog The figure below provides the composition of the backlog for Parks assets. Replacement of sports fields (baseball, softball, and soccer) account for over half of the total costs included in the backlog. The items in the backlog represent legitimate backlog costs as there is a high likelihood that these items will require replacement within the ten-year forecast period. The average condition rating for baseball and softball fields is Poor, whereas the average condition rating for soccer fields is Fair. Playgrounds and splashpads are also frequently used assets that typically require replacement at the end of their useful life. Figure F6 – Backlog Composition – Parks Assets Play Courts 5% Baseball/Softball/Soccer Fields 55% Playgrounds and Splashpads 18% Sports Field Lights 5% Park Lights 3% Trails 11% Park Miscellaneous 3% Attachment 1 to FSD-030-24 Page 302 Asset Management Plan 2024 | 136 Average Annual Lifecycle Cost The costs in Figure F5 represent the annual gross cost of maintaining Parks assets over the next ten years. The amount of lifecycle activities varies on an annual basis, leading to significant cost variances from year-to-year. Figure F7 below removes the significant annual variances by determining the average annual cost of maintaining Parks assets at their current level of service (i.e.: maintaining the overall dollar value of the backlog throughout the forecast period). The figure also nets off any costs where the work has already been budgeted but not yet completed. Figure F7 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) $1,209 $2,080 $2,756 $1,331 $1,693 $1,825 $2,368 $2,213 $3,532 $1,799 $1,870 $1,944 $2,021 $2,101 $2,184 $2,271 $2,361 $2,455 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 303 Asset Management Plan 2024 | 137 Alternative Lifecycle Costing The figure above identifies the average annual costs at current service levels, where the dollar value of the backlog and current asset condition distribution remain constant throughout the forecast period. The figures below provide alternative costing scenarios based on a more aggressive approach to addressing the backlog. Figure F8 provides average annual costing under a scenario in which the overall size of the backlog is reduced by 50 per cent over the ten-year forecast period. This would result in a service level enhancement in which the condition distribution would include more assets in the Good to Very Good range. Figure F8 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Reduced Backlog $2,429 $3,348 $4,076 $2,703 $3,121 $3,309 $3,911 $3,818 $5,202 $3,019 $3,139 $3,264 $3,393 $3,528 $3,669 $3,815 $3,967 $4,125 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 304 Asset Management Plan 2024 | 138 Figure F9 provides average annual costing under a scenario where the entire backlog is eliminated over the ten- year forecast period. This would result in a service level enhancement in which the condition distribution would include nearly all assets in the Good to Very Good range. Figure F9 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Eliminate Backlog The table below compares the average annual cost of maintaining current service levels (i.e.: maintaining the current dollar value of the backlog) with the alternative scenarios of reducing and eliminating the backlog over the forecast period. $3,649 $4,617 $5,395 $4,076 $4,548 $4,793 $5,455 $5,424 $6,871 $4,239 $4,408 $4,583 $4,766 $4,956 $5,153 $5,359 $5,572 $5,794 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 305 Asset Management Plan 2024 | 139 Table F6 – Average Annual Lifecycle Cost Comparison ($,000’s) 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Current Service Levels $1,799 $1,870 $1,944 $2,021 $2,101 $2,184 $2,271 $2,361 $2,455 $19,006 Reduce Backlog $3,019 $3,139 $3,264 $3,393 $3,528 $3,669 $3,815 $3,967 $4,125 $31,918 Eliminate backlog $4,239 $4,408 $4,583 $4,766 $4,956 $5,153 $5,359 $5,572 $5,794 $44,829 Attachment 1 to FSD-030-24 Page 306 Asset Management Plan 2024 | 140 Recreation, Community, and Culture 10 Attachment 1 to FSD-030-24 Page 307 Asset Management Plan 2024 | 141 Recreation, Community, and Culture Overview Recreation, Community, and Culture (RCC) infrastructure includes all the facilities owned by the Municipality and used for community programming or community use. RCC facilities include arenas, aquatic centres, community halls, and certain libraries. The Bowmanville Library is included under the Corporate Facilities asset category as the Bowmanville branch is connected to, and included with, the Municipal Administration Centre. The Courtice library has been included with the Courtice Community Centre as the Courtice branch is part of this facility. Also included in RCC are the various pieces of equipment associated with recreation activities, such as fitness equipment and miscellaneous recreation equipment. The Municipality’s RCC facilities are operated and managed by the Facilities division of the Public Services Department, while the equipment is owned and operated by the Community Services division within Public Services. The majority of asset management information for RCC Facilities has been derived from the Building Condition Assessments (BCA) completed in late 2023 and early 2024. The Municipality contracted an external engineering consultant to conduct detailed condition assessments on all major facilities within the Municipality. The BCA’s provide updated replacement values, condition assessments, and lifecycle management costs. The Municipality’s RCC assets have been divided into different asset sub-types, based on similar characteristics and functions. The different sub-types are provided and defined in the table below. Table G1 – Recreation, Community, and Culture Assets Asset Type Asset Sub-Type Purpose Facilities Arenas Includes any sports complex that is equipped with at least one ice pad. The entire sports complex would be considered an arena. Aquatic Centres Includes any sports or community complex that is equipped with at least one swimming pool. The entire sports/community complex would be considered an aquatic centre. Indoor Soccer Facility The Municipality’s soccer dome, which includes an indoor turf soccer field, along with changerooms and office space. Attachment 1 to FSD-030-24 Page 308 Asset Management Plan 2024 | 142 Asset Type Asset Sub-Type Purpose Community Facilities Includes all community halls and community centres that are used for special events and can be rented by the public for private use. Culture Facilities Includes three museums, one visual arts centre, and the Orono and Newcastle branches of the Clarington Public Library. Equipment Fitness Equipment The various pieces of strength and cardio equipment included in the Municipality’s fitness centres. Fitness centres are located within certain arenas and aquatic centres. Recreation Equipment Equipment used for the purpose of providing recreation services. This includes small equipment, such as floor scrubbers, that would not be included in the Municipality’s broader inventory of fleet and equipment. State of Local Infrastructure Asset Inventory The summarized asset inventory for RCC is presented in Table G2 below. Replacement costing for RCC facilities is based on a full reconstruction of the corresponding facilities. An estimate of $750 per sq. ft has been applied to the size of each facility to generate the replacement cost. These figures differ from what is presented in the BCA’s as the BCA’s provide a replacement value as opposed to a replacement cost. Total replacement value represents only a sum of the costs of each component part of the facility, whereas replacement cost is a broader measure that includes all the other costs associated with replacing a facility (e.g. project management, contingencies, labour costs, etc.). Replacement costing for equipment has been derived using a combination of recent tenders for similar assets and estimates provided by staff within Community Services. In certain circumstances, replacement costing has been estimated by applying an inflation factor to historical costing. Attachment 1 to FSD-030-24 Page 309 Asset Management Plan 2024 | 143 Table G2 - Summarized Asset Inventory – Recreation, Community, and Culture Asset Type Asset Sub-Type Quantity Average Age (Years) Replacement Cost ($2024) Facilities Arenas 5 38.2 $202,114,000 Aquatic Centres 3 30.3 102,946,000 Indoor Soccer Facility 1 19.0 23,250,000 Community Facilities 13 80.0 98,861,000 Culture Facilities 6 88.7 33,721,000 Equipment Fitness Equipment 115 6.4 404,000 Recreation Equipment 29 7.2 409,000 Total 172 48.1 $461,705,000 As shown in Table G2, the total replacement cost for RCC assets is approximately $461.7 million. Most of the replacement costing relates to the RCC facilities, with arenas and aquatic centres accounting for the largest share of the cost. Asset Age Table G3 includes a summary of the average age of the various RCC assets within each asset sub-type. The age of each asset in the inventory is assessed and given equal weighting when deriving the average age for each sub-type. The average age for each sub-type represents the simple average of the various components within that category. The total average age for all RCC assets represents a weighted average of the different sub-types, based on total replacement cost. Attachment 1 to FSD-030-24 Page 310 Asset Management Plan 2024 | 144 Table G3 – Average Age and Condition – Recreation, Community, and Culture Asset Type Asset Sub-Type Quantity Average Age (Years) Average Estimated Useful Life (Years) Average Condition (FCI) Average Condition State Facilities Arenas 5 38.2 50 0.04% Good Aquatic Centres 3 30.3 50 0.13% Good Indoor Soccer Facility 1 19 50 0.00% Good Community Facilities 13 80 50 0.24% Good Culture Facilities 6 88.7 50 0.21% Good Equipment1 Fitness Equipment 115 6.4 8 76% Good Recreation Equipment 29 7.2 8 94% Fair Total2 172 48.1 0.12% Good 1 Average condition for equipment assets is based on the ULC% methodology. 2 Total average condition includes only the FCI condition ratings for Facilities as Facilities account for 99 per cent of RCC replacement costs. The age for each of the facilities within each facility sub-type represents the age of the original portion of the building. Some facilities may have undergone additions or significant renovations over the years; however, the AMP uses the date of the original construction as the basis for the age calculation. Each asset has also been assigned an estimated useful life based on industry standards and the Municipality’s current Capitalization Policy. Figure G1 below compares the average age with the average estimated useful life for each asset sub-type. The average age, for the majority of RCC assets, is within the estimate useful life. Attachment 1 to FSD-030-24 Page 311 Asset Management Plan 2024 | 145 Figure G1 – Average Age (Years) and Estimated Useful Life (Years) – Recreation, Community, and Culture In terms of RCC facilities, Figure G1 uses the estimated useful life of the building structure to compare against the average age. The estimated useful life of the entire facility is difficult to assess given the various underlying components. The Municipality’s Capitalization Policy assigns different useful life assumptions to different facility components. The various estimated useful life assumptions are provided in Table G4 below. 38.2 30.3 19.0 80.0 88.7 6.4 7.2 50.0 50.0 50.0 50.0 50.0 8.3 7.8 0 10 20 30 40 50 60 70 80 90 100 Arenas Aquatic Centres Indoor Soccer Facility Community Facilities Culture Facilities Fitness Equipment Recreation Equipment Estimated Useful Life Average Age Attachment 1 to FSD-030-24 Page 312 Asset Management Plan 2024 | 146 Table G4 – Estimated Useful Life – Various Building Components Asset Class Sub-class Type Estimated Useful Life Building Structure Overall 50 years Roof As per material and condition Variable Structure Interior 25 years Structure Mechanical (includes HVAC, heat pumps, water heaters, etc.) Variable Specialized Indoor pool; Ice pad 30 years Specialized Indoor field 15 years Site Improvement Parking lot, Landscaping 20 years Whole Sand domes, Salt shed, Quonset hut, Sheds 25 years Asset Condition Table G3 also provides the average condition rating for each of the asset sub-types within RCC. RCC Facilities use the Facilities Condition Index (FCI) methodology to assess condition. The FCI is an industry standard used to assess the condition of building assets. The condition of the equipment assets was derived using the ULC% methodology. As described in the Municipality’s BCA’s, the Facility Condition Index (FCI) is a comparative indicator of the relative condition of facilities. The FCI is expressed as a ratio of the cost of remedying maintenance deficiencies to the current replacement value. Calculating the FCI, for a particular year, requires dividing the cost of renewal needs in that particular year by the estimated replacement value. Note that the BCA’s use total replacement value, as opposed to total replacement cost, as the denominator in their condition calculations. The average condition for all RCC assets is rated as Good. The average condition rating for RCC assets reflects only the facility component and was derived using a weighted average based on the replacement cost of each sub-type. The condition rating for each facility reflects the current FCI rating for 2024 as provided in the BCA’s. Attachment 1 to FSD-030-24 Page 313 Asset Management Plan 2024 | 147 Equipment assets were excluded from the total average condition rating as the facility component accounts for 99.8 per cent of the total RCC asset replacement costing. The figures below provide the condition distribution for each of the sub-asset types. All the facilities, within each asset sub-type, have an FCI rating of Good for 2024. The condition of the individual equipment assets varies from Very Poor to Very Good. Figure G2 – Condition Distribution – Recreation, Community, and Culture - Facilities 100% 100% 100% 100% 100% 0%10%20%30%40%50%60%70%80%90%100% Arenas Aquatic Centres Indoor Soccer Facility Community Facilities Culture Facilities Good Fair Poor Critical Attachment 1 to FSD-030-24 Page 314 Asset Management Plan 2024 | 148 Figure G3 – Condition Distribution – Recreation, Community, and Culture – Equipment Long-term Condition Rating – RCC Facilities In addition to providing facility condition ratings for the current year, the BCA’s also provide total condition ratings for the next five and ten years. These condition ratings are derived by summing the total dollar value of renewal needs over the next five and ten years and dividing by the current replacement value. The table below provides the total average condition rating for the next five and ten years for each facility sub-type within RCC. Table G5 - Total Five- and Ten-year Average Condition Rating – RCC Facilities Total 5-year FCI% Total 5-year Condition State Total 10-year FCI% Total 10-year Condition State Arenas 3.13% Good 16.41% Poor Aquatic Centres 3.64% Good 9.83% Fair Community Centres 14.08% Poor 25.80% Poor Culture Facilities 21.19% Poor 33.47% Critical 39% 17% 29% 40% 10% 17% 10%12% 27% 0%10%20%30%40%50%60%70%80%90%100% Fitness Equipment Recreation Equipment Very Good Good Fair Poor Very Poor Attachment 1 to FSD-030-24 Page 315 Asset Management Plan 2024 | 149 The table above suggests that, although the current average condition of RCC facilities is rated as Good, these facilities will still require a significant amount of renewal needs, over the next five to ten years, relative to their current replacement value. Levels of Service The levels of service for RCC were developed to reflect the desires, values, and expectations of the community. The Level of Service statements are intended to capture the expectations of the community, while the performance measures are intended to quantify those expectations. The Levels of Service attributes are intended to reflect some of the key characteristics important to the organization. The Municipality’s current level of service performance is provided in the table below. Proposed levels of services and their respective targets will be identified in future iterations of the AMP. Table G6 – Current Levels of Service – Recreation, Community, and Culture Service Attribute Level of Service Statement Performance Measure Current Performance Cost Effective Managing Recreation, Community, and Culture assets in a fiscally sustainable manner Recreation, Community, and Culture Facilities Reinvestment Rate 0.6% Accessibility Ensuring recreation and culture activities are accessible to all members of the community Number of ice pads per capita (ratio) 1: 15,396 Number of indoor swimming pools (excluding tot pools) per capita (ratio) 1: 35,923 Library square feet per person 0.42 Quality Ensuring Recreation, Community, and Culture assets remain in a suitable condition for public use % of Recreation, Community, and Culture facilities in Fair or better condition (FCI) 100% % of Recreation, Community, and Culture equipment in Fair or better condition 77% Attachment 1 to FSD-030-24 Page 316 Asset Management Plan 2024 | 150 Service Attribute Level of Service Statement Performance Measure Current Performance Sustainability Providing Recreation, Community, and Culture services in an environmentally sustainable manner Annual electric energy consumption for all Corporate Facilities, per sq. ft. 128 kWh Annual natural gas consumption for all Corporate Facilities, per sq. ft 16 m3 Annual water consumption for all Corporate Facilities, per sq. ft. 3.2 m3 Lifecycle Management Strategies and Costing The Municipality undertakes four main types of lifecycle activities to ensure RCC assets maintain their current level of service. Inspection activities are completed periodically to assess the overall condition of each facility, along with the condition of each major component part (e.g. roof, plumbing, electrical, etc.). Routine inspections are completed by staff, including quarterly mechanical inspections and monthly visual building inspections. Detailed BCA’s are completed approximately every 5-years and help identify the potential maintenance requirements over a forecast horizon. The cost of BCA inspections represents a capital cost to the Municipality and have been captured in the annual lifecycle costing. Minor repair and maintenance activities are performed throughout the lifecycle of the assets. These activities include the general maintenance required to ensure the assets remain in good working order. Minor expenses are funded through repair and maintenance accounts in the Municipalities operating budget. Major expenses are funded through the Municipalities capital budget. Major repair and maintenance activities are also performed throughout the lifecycle of the asset. Major repairs and maintenance occur when the cost to perform the activity exceeds $5,000 and the cost becomes a capital expense. The BCA’s provide a ten-year forecast for repair and maintenance activities required to maintain the facilities in good working order. The forecasts from the BCA’s have been used as the basis for the facility lifecycle costing estimates in the AMP. The AMP assumes that minor costs ($5,000 or less) will flow through the municipal Attachment 1 to FSD-030-24 Page 317 Asset Management Plan 2024 | 151 operating budget and have not been included in lifecycle costing. The lifecycle costing in the AMP includes only the major expenses, identified in the BCA’s, that exceed the $5,000 threshold. Replacement activities involve the full replacement of assets at the end of their useful life. Replacement activities constitute a capital cost and have been included in the AMP for equipment assets. The AMP does not forecast the full replacement of any RCC facilities over the ten-year forecast period. The figure below identifies the annual lifecycle costing required to maintain the Municipality’s current level of service. Figure G4 – Annual Lifecycle Costing – Recreation, Community, and Culture ($,000’s) $1,371 $295 $7,451 $598 $3,487 $9,156 $1,892 $4,265 $2,725 $1,447 $9,638 $40,954 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 Attachment 1 to FSD-030-24 Page 318 Asset Management Plan 2024 | 152 It will cost approximately $41 million over the next ten years to maintain the current level of service. The total cost, including all the costs in the backlog, is approximately $42.3 million. The backlog items include maintenance activities that were identified in the BCA’s to be performed in 2023. The backlog also includes various equipment assets that are beyond their estimated useful life. Average Annual Lifecycle Cost The costs in Figure G4 represent the annual gross cost of maintaining RCC assets over the next ten years. The amount of lifecycle activities varies on an annual basis, leading to significant cost variances from year-to-year. Figure G5 below removes the significant annual variances by determining the average annual cost of maintaining RCC assets at their current level of service (i.e.: maintaining the overall dollar value of the backlog throughout the forecast period). The figure also nets off any costs where the work has already been budgeted but not yet completed. Figure G5 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) $295 $7,380 $598 $3,487 $9,099 $1,892 $4,265 $2,725 $1,447 $9,638 $3,852 $4,008 $4,170 $4,338 $4,513 $4,695 $4,884 $5,081 $5,285 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 319 Asset Management Plan 2024 | 153 Alternative Lifecycle Costing The figure above identifies the average annual costs at current service levels, where the dollar value of the backlog and current asset condition distribution remain constant throughout the forecast period. The figures below provide alternative costing scenarios based on a more aggressive approach to addressing the backlog. Figure G6 provides average annual costing under a scenario in which the overall size of the backlog is reduced by 50 per cent over the ten-year forecast period. This would result in a service level enhancement in which the condition distribution would include more assets in the Good to Very Good range. Figure G6 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Reduce Backlog $295 $7,455 $677 $3,569 $9,184 $1,981 $4,357 $2,820 $1,547 $9,741 $3,928 $4,087 $4,251 $4,423 $4,601 $4,787 $4,980 $5,180 $5,389 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 320 Asset Management Plan 2024 | 154 Figure G7 provides average annual costing under a scenario where the entire backlog is eliminated over the ten- year forecast period. This would result in a service level enhancement in which the condition distribution would include nearly all assets in the Good to Very Good range. Figure G7 – Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Eliminate Backlog The table below compares the average annual cost of maintaining current service levels (i.e.: maintaining the current dollar value of the backlog) with the alternative scenarios of reducing and eliminating the backlog over the forecast period. $295 $7,531 $756 $3,650 $9,269 $2,069 $4,449 $2,916 $1,646 $9,845 $4,004 $4,165 $4,333 $4,508 $4,690 $4,879 $5,075 $5,280 $5,492 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 321 Asset Management Plan 2024 | 155 Table G7 – Average Annual Lifecycle Cost Comparison ($,000’s) 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Current Service Levels $3,852 $4,008 $4,170 $4,338 $4,513 $4,695 $4,884 $5,081 $5,285 $40,825 Reduce Backlog $3,928 $4,087 $4,251 $4,423 $4,601 $4,787 $4,980 $5,180 $5,389 $41,625 Eliminate Backlog $4,004 $4,165 $4,333 $4,508 $4,690 $4,879 $5,075 $5,280 $5,492 $42,426 Attachment 1 to FSD-030-24 Page 322 Asset Management Plan 2024 | 156 Transportation Infrastructure 11 Attachment 1 to FSD-030-24 Page 323 Asset Management Plan 2024 | 157 Transportation Infrastructure Overview Transportation Infrastructure includes all the infrastructure used to ensure the safe and efficient transportation of pedestrians, cyclists and vehicles. Transportation Infrastructure includes items such as sidewalks, streetlights, traffic signals, and guiderails. Transportation Infrastructure does not include the municipal road network. Roads are considered core infrastructure and were included in the previous iteration of the AMP related to core infrastructure. The Municipality’s Transportation Infrastructure assets have been divided into different asset sub-types, based on similar characteristics and functions. The different sub-types are provided and defined in the table below. Transportation Infrastructure is overseen by both the Planning and Infrastructure Services Department and the Public Works division of the Public Services Department. Table H1 – Transportation Infrastructure Assets Asset Type Asset Sub-Type Purpose Guiderails Steel Beam Guiderails Steel guiderails used to guide traffic along a roadway and away from hazardous situations, such as drop-offs or fixed objects. Guideposts / Post & Cable Serve the same purpose as steel guiderails but are constructed using wood posts and steel cables. Concrete Barriers Serve the same purpose as steel guiderails but are constructed from reinforced concrete. Sidewalks Concrete Sidewalks Portion of the Municipality’s sidewalk network constructed with a concrete base. Asphalt Sidewalks Portion of the Municipality’s sidewalk network constructed with an asphalt base. Streetlighting Concrete Standard Poles Concrete pole used to support the streetlight luminaire. Wood Poles Wood pole used to support the streetlight luminaire. Attachment 1 to FSD-030-24 Page 324 Asset Management Plan 2024 | 158 Asset Type Asset Sub-Type Purpose Aluminum Poles Aluminum pole used to support the streetlight luminaire. Concrete Decorative Poles Concrete pole used to support the streetlight luminaire. Typically made of spun-concrete to provide aesthetic appeal. Steel Decorative Poles Steel pole, enhanced with decorative features, used to support a streetlight luminaire. Standard LED Luminaire Light fixture, secured to a streetlight pole, to illuminate the roadway. Decorative LED Luminaire Decorative light fixture, secured to a streetlight pole, to illuminate the roadway. Traffic Controls Traffic Signals Signaling infrastructure used at roadway intersections to allow safe passage of motor vehicles. Includes traffic lights, cabinets, and pedestrian signals. Pedestrian Crossings Signaling infrastructure used to stop traffic and allow pedestrians safe passage across a roadway. Equipment Radar Message Boards Electronic traffic devices used to enhance safety by displaying vehicle speed and displaying information to drivers. State of Local Infrastructure Asset Inventory The summarized asset inventory for Transportation Infrastructure is presented in Table H2 below. Replacement costing has been derived using a combination of recent tenders for similar assets and estimates provided by municipal staff. In certain circumstances, replacement costing has been estimated by applying an inflation factor to historical costing. Attachment 1 to FSD-030-24 Page 325 Asset Management Plan 2024 | 159 Table H2 - Summarized Asset Inventory – Transportation Infrastructure As shown in Table H2, the total replacement cost for Transportation Infrastructure assets is approximately $215.7 million. Most of the replacement costing relates to the sidewalk network, which accounts for over $161 million of the total replacement cost. The Municipality also owns over 3,700 concrete streetlight poles, totaling over $25 million in replacement costing. Replacement costing is based on the full replacement of each asset. In terms of traffic signals, this includes all components of a signalized intersection (e.g. LED lights, cabinet, electrical work, light poles, automated pedestrian signals, etc.). The Municipality recently completed an LED conversion program on streetlight luminaires; therefore, the luminaire replacement costing assumes an LED replacement. Asset Type Asset Sub-Type Quantity Length (Km) Average Age (Years) Replacement Cost ($2024) Guiderails Steel Beam Guiderails 23.96 15.8 $8,627,000 Guideposts / Post & Cable 7.02 24.8 839,000 Concrete Barriers 0.02 38.0 13,000 Sidewalks Concrete Sidewalks 347.81 22.8 157,906,000 Asphalt Sidewalks 6.77 23.6 3,787,000 Streetlighting Concrete Standard Poles 3,739 22.6 25,841,000 Wood Poles 143 N/A 659,000 Aluminum Poles 229 N/A 1,781,000 Concrete Decorative Poles 663 17.2 5,156,000 Steel Decorative Poles 247 N/A 1,921,000 Standard LED Luminaire 4,292 4.0 2,468,000 Decorative LED Luminaire 910 2.0 1,283,000 Traffic Controls Traffic Signals 18 20.2 5,076,000 Pedestrian Crossings 5 4.0 238,000 Equipment Radar Message Boards 21 4.9 76,000 Total 10,267 385.58 21.8 $215,671,000 Attachment 1 to FSD-030-24 Page 326 Asset Management Plan 2024 | 160 Asset Age Table H3 includes a summary of the average age of the various Transportation Infrastructure assets within each asset sub-type. The age of each asset in the inventory is assessed and given equal weighting when deriving the average age for each sub-type. The average age for each asset sub-type represents the simple average of the various components within that sub-type. The total average age, for all Transportation Infrastructure assets, represents a weighted average of the different sub-types, based on total replacement cost. Table H3 – Average Age and Condition – Transportation Infrastructure Asset Type Asset Sub-Type Quantity Length (Km) Average Age (Years) Average Estimated Useful Life Average Condition (ULC%) Average Condition State Guiderails Steel Beam Guiderails 23.96 15.8 80 20% Very Good Guideposts / Post & Cable 7.02 24.8 80 31% Very Good Concrete Barriers 0.02 38 80 48% Good Sidewalks Concrete Sidewalks 347.81 22.8 80 29% Very Good Asphalt Sidewalks 6.77 23.6 80 30% Very Good Streetlighting Concrete Standard Poles 3,739 22.6 80 28% Very Good Wood Poles 143 N/A 80 N/A N/A Aluminum Poles 229 N/A 80 N/A N/A Concrete Decorative Poles 663 17.2 80 22% Very Good Steel Decorative Poles 247 N/A 80 N/A N/A Standard LED Luminaire 4,292 4 15 27% Very Good Decorative LED Luminaire 910 2 15 13% Very Good Traffic Controls Traffic Signals 18 20.2 25 81% Good Pedestrian Crossings 5 4 15 27% Very Good Equipment Radar Message Boards 21 4.9 10 49% Good Total 10,267 385.58 21.8 29% Very Good Attachment 1 to FSD-030-24 Page 327 Asset Management Plan 2024 | 161 In terms of streetlight poles, the only age and condition information available is for concrete poles (standard and decorative). The other streetlight pole types represent a much smaller proportion of the total streetlight pole inventory. The majority of the non-concrete streetlight poles were likely installed before the Municipality instituted electronic tracking. Non-concrete streetlight poles have been assigned an age of “N/A” to reflect the fact that no data is available. Each asset has also been assigned an estimated useful life based on industry standards and the Municipality’s current Capitalization Policy. The estimated useful life for guiderails, sidewalks, and streetlight poles has been set to 80 years to match the estimated useful life of a road. These assets have very long-life spans and will not typically be subject to a large scale replacement unless a major road replacement occurs. Large road replacements may require the removal of the adjacent sidewalk, streetlights, and guiderails, in which new infrastructure would then be installed in its place. Figure H1 below compares the average age with the average estimated useful life for each asset sub-type. Based on the long estimated useful life assigned to many of the asset categories, the average age for the majority of Transportation Infrastructure is well within the estimated useful life. The figure excludes the assets in which the age is unknown. Attachment 1 to FSD-030-24 Page 328 Asset Management Plan 2024 | 162 Figure H1 – Average Age (Years) and Estimated Useful Life (Years) – Transportation Infrastructure Asset Condition Table H3 also provides the average condition rating for each of the asset sub-types within Transportation Infrastructure. The condition assessments have been derived using the ULC% methodology. The average condition for all Transportation Infrastructure assets is rated as Very Good. This average condition rating was derived using a weighted average of all asset sub-types, based on total replacement cost. 15.8 24.8 38.0 22.8 21.7 3.3 20.2 4.0 4.9 80 80 80 80 80 15 25 15 10 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 Steel Beam Guiderails Guideposts / Post & Cable Concrete Barriers Sidewalks Concrete Light Poles Luminaires Traffic Signals Pedestrian Crossings Radar Message Boards Estimated Useful Life Average Age Attachment 1 to FSD-030-24 Page 329 Asset Management Plan 2024 | 163 The Very Good condition rating stems from the fact that many assets have a very long estimated useful life. Many of the assets holding a large share of the overall replacement cost (streetlights and sidewalks) do not typically get replaced unless severely damaged or because they are part of a road segment being replaced. Although the overall condition is assessed as Very Good, the actual condition of the various assets within each asset sub-type varies. The figure below illustrates the condition distribution within each specific sub-type. Figure H2 – Condition Distribution – Transportation Infrastructure 91% 74% 50% 86% 97% 100% 39% 100% 52% 9% 26% 50% 14% 3% 33% 38%10% 28% 0%10%20%30%40%50%60%70%80%90%100% Steel Beam Guiderails Guideposts / Post & Cable Concrete Barriers Sidewalks Concrete Light Poles Luminaires Traffic Signals Pedestrian Crossings Radar Message Boards Very Good Good Fair Poor Very Poor Attachment 1 to FSD-030-24 Page 330 Asset Management Plan 2024 | 164 Levels of Service The levels of service for Transportation Infrastructure were developed in an effort to reflect the desires, values, and expectations of the community. The Level of Service statements are intended to capture the expectations of the community, while the performance measures are intended to quantify those expectations. The Levels of Service attributes are intended to reflect some of the key characteristics important to the organization. The Municipality’s current level of service performance is provided in the table below. Proposed levels of services and their respective targets will be identified in future iterations of the AMP. Table H4 – Current Levels of Service – Transportation Infrastructure Service Attribute Level of Service Statement Performance Measure Current Performance Cost Effective Maintaining Transportation Infrastructure in a fiscally sustainable manner Transportation Infrastructure Reinvestment Rate 0.50% Accessibility Providing Transportation Infrastructure that is accessible for all % of sidewalks that comply with AODA minimum clearance width of 1.5m 83% Quality Providing major Transportation Infrastructure assets in an acceptable condition % of sidewalks in Fair or better condition 59.70% % of streetlight luminaires in Fair or better condition 66.70% Sustainability Providing environmentally sustainable Transportation services for the community % of vehicles (excluding fire trucks) that are fully electric (EV) 6.67% Attachment 1 to FSD-030-24 Page 331 Asset Management Plan 2024 | 165 Lifecycle Management Strategies and Costing The Municipality undertakes three main types of lifecycle activities to ensure Transportation Infrastructure assets maintain their current level of service. Inspection activities are completed periodically to assess the overall condition of Transportation Infrastructure assets. Sidewalks receive frequent visual inspections to determine whether maintenance activity is required. Other assets are also visually inspected to determine the level of maintenance required. These inspections are typically completed at the staff level and do not represent an additional cost to the Municipality. There are no inspection costs included in annual lifecycle costing. General repair and maintenance activities are performed throughout the lifecycle of the assets. These activities include the general maintenance required to ensure the assets remain in good working order. Sidewalk infrastructure is generally subject to general repair and maintenance to ensure they remain in suitable condition. General repair and maintenance is typically performed on a sidewalk as opposed to a full sidewalk replacement. These activities are funded through the annual operating budget and have not been included in the AMP. Replacement activities involve the full replacement of assets at the end of their useful life. The replacement of Transportation Infrastructure assets can represent both a capital expense and an operating expense. Certain assets, such as streetlight poles, do not form a significant expense on an individual basis. If an individual streetlight pole or luminaire requires replacement, it would form an operating expense. If a large pool of streetlight poles and luminaires required replacement, the sum total would reflect a capital expense. As many of the Transportation Infrastructure assets are replaced on a case-by-case basis (i.e.: funded through the operating budget) and do not require full replacement on a routine basis, the estimated lifecycle capital costing is quite minimal relative to the overall replacement cost. The routine end-of-life replacements that represent a capital expense are the only lifecycle activities included in the lifecycle costing. The figure below identifies the annual lifecycle costing required to maintain the Municipality’s current level of service. Attachment 1 to FSD-030-24 Page 332 Asset Management Plan 2024 | 166 Figure H3 – Annual Lifecycle Costing – Transportation Infrastructure ($000’s) It will cost approximately $432,000, over the next ten years, to maintain the current level of service. The total cost, including all the costs in the backlog, is approximately $732,000. Again, this small value reflects the fact that most Transportation Infrastructure are not routinely replaced and, if they do require replacement on an individual basis, the expense typically forms part of the operating budget. Average Annual Lifecycle Cost The costs in Figure H3 represent the annual gross cost of maintaining Transportation Infrastructure assets over the next ten years. The amount of lifecycle activities varies on an annual basis, leading to significant cost variances from year-to-year. $280 $0 $63 $50 $78 $0 $54 $0 $10 $110 $68 $432 $0 $50 $100 $150 $200 $250 $300 $350 Attachment 1 to FSD-030-24 Page 333 Asset Management Plan 2024 | 167 Figure H4 below removes the significant annual variances by determining the average annual cost of maintaining Transportation Infrastructure assets at their current level of service (i.e.: maintaining the overall dollar value of the backlog throughout the forecast period). The figure also nets off any costs where the work has already been budgeted but not yet completed. Figure H4 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) Alternative Lifecycle Costing The figure above identifies the average annual costs at current service levels, where the dollar value of the backlog and current asset condition distribution remain constant throughout the forecast period. The figures below provide alternative costing scenarios based on a more aggressive approach to addressing the backlog. $15 $25 $52 $0 $54 $0 $10 $110 $68 $32 $33 $34 $36 $37 $38 $40 $41 $43 $0 $20 $40 $60 $80 $100 $120 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 334 Asset Management Plan 2024 | 168 Figure H5 provides average annual costing under a scenario in which the overall size of the backlog is reduced by 50 per cent over the ten-year forecast period. This would result in a service level enhancement in which the condition distribution would include more assets in the Good to Very Good range. Figure H5 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Reduce Backlog Figure H6 provides average annual costing under a scenario where the entire backlog is eliminated over the ten- year forecast period. This would result in a service level enhancement in which the condition distribution would include nearly all assets in the Good to Very Good range. $21 $31 $58 $7 $61 $7 $18 $118 $77 $38 $39 $41 $42 $44 $46 $48 $49 $51 $0 $20 $40 $60 $80 $100 $120 $140 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 335 Asset Management Plan 2024 | 169 Figure H6 - Total Annual Lifecycle Cost vs Average Annual Lifecycle Cost ($,000’s) – Eliminate Backlog The table below compares the average annual cost of maintaining current service levels (i.e.: maintaining the current dollar value of the backlog) with the alternative scenarios of reducing and eliminating the backlog over the forecast period. $27 $38 $65 $14 $68 $15 $26 $126 $85 $44 $46 $47 $49 $51 $53 $55 $57 $60 $0 $20 $40 $60 $80 $100 $120 $140 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Annual Lifecycle Cost Average Annual Lifecycle Cost Linear (Average Annual Lifecycle Cost) Attachment 1 to FSD-030-24 Page 336 Asset Management Plan 2024 | 170 Table H5 – Average Annual Lifecycle Cost Comparison ($,000’s) 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Current Service Levels $32 $33 $34 $36 $37 $38 $40 $41 $43 $334 Reduce Backlog $38 $39 $41 $42 $44 $46 $48 $49 $51 $399 Eliminate Backlog $44 $46 $47 $49 $51 $53 $55 $57 $60 $463 Streetlight Luminaires The Municipality implemented an LED streetlight conversion program in 2020. The project included replacing existing streetlight luminaires with LED replacements. The majority of the conversions were completed in 2020, with additional conversions completed in 2022. The LED luminaires have an estimated useful life of 15 years; therefore, the estimated replacement of these luminaires falls just outside the 10-year forecast horizon in the AMP (estimated replacement in 2034). The current estimated replacement cost for the standard LED luminaires totals nearly $2.5 million. Streetlight luminaires tend not to be replaced until they fail. Luminaire replacements are typically funded through the operating budget as they are replaced on a case-by-case basis. However, given that many of the LED luminaires were installed at the same time, there is a possibility that a large amount could also fail at the same time. This could potentially lead to a large capital expense. Table H6 illustrates the impact to the Average Annual Lifecycle Cost if the full replacement of all standard LED luminaires were included within the 10-year forecast period. The table provides the estimated average annual lifecycle costs under scenario one. The estimated average annual cost would be reduced under the other two scenarios. Attachment 1 to FSD-030-24 Page 337 Asset Management Plan 2024 | 171 Table H6 – Average Annual Lifecycle Cost – Luminaire Replacement ($000’s) 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Average Annual Lifecycle Cost (No Luminaires) $32 $33 $34 $36 $37 $38 $40 $41 $43 $334 Average Annual Lifecycle Cost (Luminaires) $344 $355 $367 $380 $393 $407 $421 $436 $451 $3,554 Attachment 1 to FSD-030-24 Page 338 Asset Management Plan 2024 | 172 Asset Management Plan 2024 The Corporation of the Municipality of Clarington 40 Temperance Street, Bowmanville, ON L1C 3A6 1-800-563-1195 Local: 905-623-3379 info@clarington.net www.clarington.net Attachment 1 to FSD-030-24 Page 339 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 3, 2024 Report Number: FSD-031-24 Authored by: Sandra McKee Submitted By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology Reviewed By: Mary-Anne Dempster, CAO Resolution Number: By-law Number: File Number: RFP2024-5 Report Subject: Contract Administration and Construction Inspection Services for the High Street and O'Dell Street Reconstruction Recommendations: 1. That Report FSD-031-24, and any related delegations or communication items, be received; 2. That the proposal received from AECOM Canada Ltd. being the highest-ranked proponent meeting all terms, conditions and specifications of RFP2024-5 be awarded the contract for the provision of Engineering Services for Contract Administration and Construction Inspection Services for the High Street and O'Dell Street Reconstruction; 3. That the funds required for this project in the amount of $98,687.87 (Net HST Rebate) be funded from the approved budget; and 4. That all interested parties listed in Report FSD-031-24, and any delegations be advised of Council’s decision. Page 340 Municipality of Clarington Page 2 Report FSD-031-24 Report Overview To request approval to award RFP2024-5 to the highest-ranked proponent to provide Contract Administration and Inspection Services for the High Street and O’Dell Street Reconstruction. 1. Background 1.1 The Municipality of Clarington requires the assistance of a qualified firm to provide Contract Administration and Inspection Services for the High Street and O’Dell Street Reconstruction. 1.2 A Request for Proposal (RFP) was drafted to allow the Municipality to select a qualified Engineering Services Consultant with the skills, resources, and experience necessary to provide contract administration and inspection services for the High Street and O’Dell Street Reconstruction. 1.3 RFP2024-5 was issued by the Purchasing Services Division and advertised electronically on the Municipality’s website. The RFP was structured on a two-envelope system with price being an evaluated factor. 2. Analysis 2.1 The RFP closed May 6, 2024. 2.2 The RFP stipulated, among other things, that the proponents were to provide a description of the Firm/Consulting team, key qualifications, firm profile, highlights of past service and experience of team members with projects of similar size, nature and complexity, and demonstrate their understanding of the Municipality’s requirements. 2.3 Fifteen companies downloaded the document, and seven proposals were received (refer to Attachment 1) by the stipulated closing date and time. One proposal received was deemed non-compliant. Six proposals received complied with Phase 1 - Mandatory Submission Requirements and were distributed to the evaluation committee for review, evaluation, and scoring. 2.4 The technical proposals were evaluated and scored independently by the members of the evaluation committee in accordance with the established criteria as outlined in the RFP. The evaluation committee was comprised of staff from the Planning and Infrastructure Services Department. Page 341 Municipality of Clarington Page 3 Report FSD-031-24 2.5 The evaluation committee met to review and agree upon the overall scores for each proposal. Some of the areas on which the submissions were evaluated were as follows:  The Proponent’s understanding of the Municipality’s requirements;  Highlights of services provided performing similar work on projects of comparable nature, size, and scope;  The qualifications and experience record of the Contract Administrator and Site Inspector to be utilized on the project.  A proposed work plan indicating the project method, schedule, Time-Task Matrix showing an estimated overall timeline of the project. 2.6 Upon completion of the evaluation, two submissions met the established passing threshold of 85 percent for Phase 2 - Technical Submission and moved to Phase 3 - Pricing. The evaluation committee determined that the optional presentation from the short-listed proponents would not be required. 2.7 The pricing envelopes for the short-listed proponents were opened and evaluated as stipulated in the RFP document. 2.8 Upon completion of the evaluation scoring, the recommendation is to award the contract for this work to the highest-ranked proponent, AECOM Canada Ltd. 2.9 AECOM Canada Ltd. has completed work for the Municipality in the past and as such a reference check was not required. 3. Financial Considerations 3.1 As per a standing agreement between the Municipality and the Region of Durham, the Region of Durham will pay an additional 10.0% on top of the as tendered construction value of works under their cost responsibility as a contribution for contract administration, inspection, and material testing works. 3.2 The funding required for this contract award is up to $98,687.87 (Net HST Rebate) and will be funded from the following account: Description Account Number Amount High Street and Odell Street Reconstruction 110-50-330-83332-7401 $15,081 High Street & O'Dell Street Reconstruction - Region Recovery 110-50-330-83332-7402 83,607 Page 342 Municipality of Clarington Page 4 Report FSD-031-24 4. Strategic Plan Not applicable. 5. Concurrence This report has been reviewed by the Deputy CAO, Planning and Infrastructure Services who concurs with the recommendations. 6. Conclusion It is respectfully recommended that AECOM Canada Ltd. be awarded the contract for the provision of Contract Administration and Inspection Services for the High Street and O’Dell Street Reconstruction. Staff Contact: Sandra McKee, Acting Purchasing Manager, 905-623-3379-Ext 2210 or smckee@clarington.net Attachments: Attachment 1 – Summary of Proposals Received Interested Parties: List of Interested Parties available from Department. Page 343 Municipality of Clarington Page 5 Report FSD-031-24 Attachment 1 - Summary of Proposals Received Municipality of Clarington RFP2024-5–Contract Administration and Construction Inspection Services for High Street and O'Dell Street Reconstruction Summary of Proposals Received Bidder AECOM Canada Ltd.* CIMA Canada Inc.* Concept Dash Inc.** EnVision Canada Inc. HiBridge Engineering Inc. Noveen Engineering Inc. Remy Consulting Engineers Ltd. Note: Bidders marked with “*” were shortlisted. Bidders marked with "**" were non-compliant. Page 344 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 3, 2024 Report Number: FSD-032-24 Authored by: Trevor Pinn Submitted By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology Reviewed By: Mary-Anne Dempster, CAO By-law Number: Resolution Number: File Number: Report Subject: Amendment to Purchasing Bylaw – Reporting Threshold for Rosters Recommendations: 1. That Report FSD-032-24, and any related delegations or communication items, be received; 2. That the By-law attached to Report FSD-032-24, as Attachment 1, be approved; and 3. That all interested parties listed in Report FSD-032-24, and any delegations be advised of Council’s decision. Page 345 Municipality of Clarington Page 2 Report FSD-032-24 Report Overview This Report seeks Council approval to add a clause in the Purchasing By-law to change the reporting requirements to Council for those procurements which follow a roster process. The roster process completes a number of the back-office review of vendors to ensure that they meet the requirements of the Municipality and are capable of completing the work. The current roster is for consulting services and with a limit of $50,000, staff are not able to utilize the roster to its fullest potential. Other purchase s have a reporting limit of $500,000, however consulting is set at $50,000; the proposal would have consultants appointed through a roster able to be approved for up to the Canadian Free Trade Agreement threshold (currently $133,800). 1. Background 1.1 In 2019, the Municipality established a roster of consultants for specific engineering services. This roster is currently being used; however it is time to issue a new solicitation. 1.2 Given the increased costs since 2019, the current threshold of $50,000 is problemat ic. In the Purchasing By-law, consultants valued greater than $50,000 requires the Purchasing Manager to issue a bid solicitation and submit a report for Council approval. 1.3 It has been noted that general contract administration services are trending above this threshold even for relatively easy projects. This is creating additional work for Planning and Infrastructure Staff, as well as Purchasing Services Staff in having to issue RFPs for items less than $100,000. For comparison, for non -consulting purchases items less than $100,000 only require three quotes. 1.4 Finance and Technology staff will be reviewing the Purchasing By-law over the summer with a revised by-law to come to Council in the fall; however, to facilitate the issuance of a roster and the expedition of capital projects, staff are recommending a change at this time. 2. Proposed Amendment 2.1 Staff are recommending that a new paragraph be added after paragraph 6 4, and that subsequent paragraphs be renumbered. The proposed paragraph 64 .1 would read “Where a roster has been established for consulting services, in compliance with this By-law, a report to Council to award a contract under the roster shall only be required for awards in excess of the threshold set by the Canada Free Trade Agreement (CFTA).” 2.2 The current threshold is $133,800 for consulting services in the CFTA. Any project anticipated to be above this would be issued an RFP or RFT as appropriate. Page 346 Municipality of Clarington Page 3 Report FSD-032-24 2.3 The proposed amendment will only impact consultants performing engineering work, primarily contract administration, and would be for projects that have already received budgetary approval. The threshold of the CFTA was chosen to ensure that any projects greater than this amount still go out for a separate solicitation in compliance with the free trade agreement. Given that a roster would pre-qualify consultants, and all projects are already budgeted, increasing the reporting threshold is a reasonable step to increase efficiency. 2.4 It is anticipated that significant time can be saved from the expanded use of a roster. The roster has been successful; however, as costs of risen the applicability of the roster has decreased. The time to draft the RFP, issue the RFP, review the RFP, draft the report to Council can all be eliminated through the expanded reporting limit in the use of the roster. 3. Financial Considerations 3.1 The change in process does not have financial implications as the funds would already be budgeted for. There will be time efficiencies in departments utilizing the roster as well as the Purchasing Division through reduced reporting burden and improved timeliness of award of work. 4. Strategic Plan 4.1 Not Applicable 5. Concurrence This report has been reviewed by the Deputy CAO of Planning and Infrastructure who concurs with the recommendations. 6. Conclusion It is respectfully recommended that the Purchasing By-law be amended to add the reporting limit for procurements undertaken through rosters. Staff Contact: Sandra McKee, Assistant Purchasing Manager, 905-623-3379 ext.2210 or smckee@clarington.net. Attachments: Attachment 1 – Draft By-law Amendment Interested Parties: There are no interested parties to be notified of Council's decision. Page 347 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 2024-XXX Being a by-law to amend the Purchasing By-law 2021-077. Whereas, pursuant to Section 270 of the Municipal Act, 2001, the Corporation enacted By-law 2021-077 (the “Purchasing By-law”) to establish and maintain policies with respect to its procurement of goods and services; and Whereas it is deemed expedient to amend the Purchasing By-law to change the process for hiring engineers and engineering consultants ; Now therefore the Council of the Municipality of Clarington enacts as follows : 1. The following section shall be added: 64.1 Where a roster has been established for consulting services, in compliance with this By-law, a report to Council to award a contract under the roster shall only be required for awards in excess of the threshold set by the Canada Free Trade Agreement (CFTA). 2. This by-law shall take effect on the date of passing. Passed in Open Council this 24 day of June, 2024. _____________________________________ Adrian Foster, Mayor _____________________________________ June Gallagher, Municipal Clerk Page 348 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 3, 2024 Report Number: LGS-028-24 Authored by: Colin Lyon, Associate Solicitor Submitted By: Rob Maciver, Deputy CAO/Solicitor, Legislative Services Reviewed By: Mary-Anne Dempster, CAO By-law Number: Resolution Number: File Number: RC.C.04.22/23 Report Subject: Surplus Declaration of Unopened Road Allowance between Lots 22 and 23, Concession 4, Former Township of Clarke Recommendations: 1. That Report LGS-028-24 be received; 2. That the unopened road allowance between Lots 22 and 23, Concession 4, Former Township of Clarke described in Report LGS-028-24 is declared surplus and conditionally approved for sale to the Applicant; 3. That the Applicant shall pay the cost to prepare and register a reference plan for the property to be conveyed; 4. That the Applicant shall pay the cost for the Municipality to obtain an appraisal of the property to be conveyed; 5. 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 any other terms considered necessary by the Deputy CAO/Solicitor; 6. That the Applicant shall pay the non-refundable processing fee; 7. 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; and 8. That all interested parties listed in Report LGS-028-24 and any delegations be advised of Council’s decision. Page 349 Municipality of Clarington Page 2 Report LGS-028-24 Report Overview This report recommends the sale of a portion of an unopened municipal road allowance located between Lots 22 and 23, Concession 4, Former Township of Clarke to James William Hale and Carolyn Lorraine Hale (the “Applicant”) in accordance with the Council approved Road Closure and Conveyance Policy CP -004. 1. Background 1.1 The Applicant has applied to purchase the unopened road allowance located between Lots 22 and 23, Concession 4, former Township of Clarke (the “Road Allowance”). 1.2 The dimensions of the Road Allowance are approximately 66 feet by 7,000 feet. 1.3 The Applicant’s objective is to increase the economic potential of the property by expanding the existing apple orchard to include the unopened road allowance . 1.4 The Applicant has submitted the required application together with the initial application fee, and Staff have made a preliminary determination that the Road Allowance is surplus to the needs of the Municipality and recommend that it be sold. 2. Next Steps 2.1 If the sale is approved by Council, the Road Allowance will be surveyed and appraised in accordance with the Road Closure and Conveyance Policy CP-004. 2.2 Upon successful fulfilment of the conditions stipulated in the recommendations of this Report, the by-law to permanently close the Road Allowance will be presented to Council for enactment, and the sale will be finalized. 3. Financial Considerations 3.1 If approved, the proceeds of the sale will be deposited to the appropriate account as determined by the Finance and Technology Department. 4. Concurrence This report has been reviewed by the Deputy CAO, Planning and Infrastructure who concurs with the recommendations. Page 350 Municipality of Clarington Page 3 Report LGS-028-24 5. Conclusion It is respectfully recommended that Council approve the sale of the above noted property to the Applicant in accordance with the Council approved Road Closure and Conveyance Policy CP-004. Staff Contact: Colin Lyon, Associate Solicitor, 905-623-3379 ext. 2027 or clyon@clarington.net. Attachments: Interested Parties: The following interested parties will be notified of Council's decision: James William Hale and Carolyn Lorraine Hale Page 351 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 3, 2024 Report Number: LGS-025-24 Submitted By: Rob Maciver, Deputy CAO/Solicitor Reviewed By: Mary-Anne Dempster, CAO Resolution#: Authored By: Lindsey Turcotte, Committee Coordinator File Number: By-law Number: Report Subject: Appointment to Clarington Heritage Committee and Newcastle Arena Board Recommendations: 1. That Report LGS-025-24, and any related delegations or communication items, be received; 2. That the resignation of Steve Lawson, Clarington Heritage Committee, and Dave Bouma, Newcastle Arena Board, be received with thanks; 3. That the Committee consider the applications for appointments to the Clarington Heritage Committee and Newcastle Arena Board, and that the vote be conducted to appoint the citizen representatives, in accordance with the Appointment to Boards and Committees Policy; and 4. That all interested parties listed in Report LGS-025-24, and any delegations be advised of Council’s decision. Page 352 Municipality of Clarington Page 2 Report LGS-025-24 Report Overview This report is intended to provide background information, regarding the vacancies on the Clarington Heritage Committee and Newcastle Arena Board to assist in the appointment process. 1. Clarington Heritage Committee 1.1 The Clarington Heritage Committee (CHC) is a volunteer advisory committee established by Council following the provisions of the Ontario Heritage Act. 1.2 The CHC assists the Municipality to identify, review, discuss, and make recommendations to Council on properties and issues of cultural heritage, value and interest. 1.3 The Committee is comprised of 14 members, including:  Ten citizen members appointed by Council (currently one vacancy);  One member of Council;  A representative from the Newcastle Village and District Historical Society;  A representative from Clarington Library, Museums and Archives; and  A representative from Architectural Conservancy Ontario - Clarington Branch. 1.4 The Committee shall seek to obtain the following as voting members:  Clarington residents from each of the four municipal wards that are experienced in heritage conservation matters;  Building and design specialist; and  An architectural historian. 1.5 The current Committee composition currently meets the qualifications outlined in Section 1.4. 1.6 The Clerk’s Division received a resignation from Steve Lawson, who was appointed to the Clarington Heritage Committee in January 2023, for a term ending December 31, 2026, or until a successor is appointed. 1.7 Currently, the Heritage Committee has 13 voting members, therefore Committee may appoint 1 citizen for a term ending December 31, 2026, or until a successor is appointed. Page 353 Municipality of Clarington Page 3 Report LGS-025-24 1.8 The following have put forward an application for consideration:  Glenn Baswick  Rick McEachern  Zane Piekenbrock  Sitara Welch 2. Newcastle Arena Board 2.1 The Newcastle Arena Board operates the Newcastle Memorial Arena. 2.2 The Board is comprised of 8 voting members, including seven community members and 1 Member of Council. 2.3 The Clerk’s Division received a resignation from David Bouma, who was appointed to the Board in January 2023, for a term ending December 31, 2026, or until a successor is appointed. 2.4 Currently, the Board has 7 members, therefore Committee may appoint 1 citizen for a term ending December 31, 2026, or until a successor is appointed. 2.5 The following have put forward an application for consideration:  Tyler Bourque  Anusan Kathir  Phil Haylock  Bryan Hutchinson  Stephanie Hogg  Adam Brooks - Late 3. Advertising and Applications 3.1 The Municipal Clerk’s Division placed an advertisement in local papers and on the Municipality’s website, www.clarington.net/Commitees, to fill the vacancies on the Clarington Heritage Committee and Newcastle Arena Board. Page 354 Municipality of Clarington Page 4 Report LGS-025-24 3.2 In an effort to extend the reach of our advertisements for vacancies, the Clerk’s Division has created a profile on the www.claringtonvolunteers.ca website. Vacancies on the Clarington Heritage Committee and Newcastle Arena Board were listed on the Clarington Volunteers website. 3.3 In accordance with the “Appointment to Boards and Committees Policy”, a confidential application package has been attached as Attachment 1. 4. Financial Considerations Not applicable. 5. Strategic Plan L.4.1: Increase opportunities for civic engagement and public participation. 6. Concurrence Not Applicable. 7. Conclusion It is respectfully recommended that Committee consider the vote to make the appointments to Clarington Heritage Committee and the Newcastle Arena Board for a term ending December 31, 2026, or until a successor is appointed. Staff Contact: Lindsey Turcotte, Committee Coordinator, 905-623-3379 ext. 2106 or LTurcotte@clarington.net. Attachments: Attachment 1 – Confidential Application Package Interested Parties: The following interested parties will be notified of Council's decision: Clarington Heritage Committee Newcastle Arena Board Page 355